Full text of Commercial and Financial Chronicle : December 27, 1945, Vol. 162, No. 4450, Section 1

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US. ADM,

library

DEC 2 8 1945

H $appj» #eto Dear to
Edition

Volume

162

ESTABLISHED

Number 4450

New

York/ N. Y., Thursday, December 27, 1945

Interest Rates and Inflation
Trying to Check Infla¬

Dr. Sakolski Stresses the

and Government Restrictions

eco-®

sidered

dan>-

gerously

All

Observer

Political

Notes

Parties

ficial

fort.

^Ifl |

|

tfauR

-

-v.

\

would

Dr. L. Albert Hahn

been

suggested
most

the

as

...

natural

on

since

of

3154)

Index

of

Features

Regular

on
1

Einzig

;

.Prospectus

CO.

&

•

y

t

HAnover

8-0000

Teletype

Cleveland

Chicago
Geneva

NY

INVESTMENT

64 Wall

Y.;

by

on page

i

.

hundreds

3159);'

•.

persist- None

looked

A. M. Sakolski

tossed

or

aside

as

merely

an

excrescence

of

contemporary political expe¬
diency or as a whim of ad¬

Members of

even

of

importance

tive to enterprise and invest¬
ment has been stressed.
The"

entrepreneur's
been

studied

and his

function
and

has

analyzed,

importance in modern
organization has

economic
-

*

(Continued

on

}

3156)

page

system that the atomic bomb
does

to;, physical

structures

and human existence.

^

•

obtained

SECURITIES

Bond

It is

State and

a

Municipal

Brokerage

Service

m

;■

••

Springfield

Woonsocket

NEW YORK

Common

Aireon

LOS ANGELES

&

Conv.

90c

Members

N.

Y.

Tel.

REctor 2-3600

New York 5
Enterprise 6016

THE

120

,

Dealt

in

N.

on

Analysis

-V

Spring

Y.

Curb

on

request

Exchange

Preferred
on

request

HART SMITH & CO.

REctor

Teletype

NY

New

York

WILLIAM
Bell

2-8600
New York

1-635

ira haupt & co.
Members
and

Members

52

Bell

NEW YORK

$6 Preferred

Company

Broadway, New York 5, N. y.
Telephone:

CITY OF

Brook Water Co.

Members New York Stock
Exchange

Teletype N. Y. 1-676

Philadelphia Telephone-

OF

Preferred

Conv.

;

1-733

Scranton

Reynolds & Co.

Security Dealers Ass'n

45 Nassau Street

Tele. NY

Raytheon Manufacturing Co.
$2.40

INCORPORATED

DIgby 4-7800

Conv.-Preferred

Prospectus

Kobbe, Gearhart & Co.

Tel.

Manufacturing Corp.

60c

MARKETS

MEMBERS NEW YORK STOCK EXCHANGE

14

CHASE

NATIONAL BANK

New York 4

Con v. -Preferred

Solar Aircraft

SECONDARY

BULL., HOLDEN & C®

30 Broad St.

634 SO. SPRING ST.

3

THE

Acme Aluminum Alloys, Inc.

FINANCE

BROKERS

Members New York Stock Exchange
Members New York Curb Exchange

INCORPORATCS

WALL STREET

M

Bond Department

Hardy & Co.

'

HUGH W. LONG and COMPANY

'

BOND

and Dealers

be

dealers

from

or

•

may

from

authorized

•/;

CORPORATE




pf

prospectus

PHILADELPHIA

Baltimore

"

TELEPHONE-RECTOR 2-6300

to

Subsequent

INVESTORS

1927

Troy
Albany
Buffalo
Syracuse
Pittsburgh
Dallas
Wilkes Barre

>

>

14 WALL ST.. NEW YORK 5.N.Y.

economists

problem.
during
the last half
a nee of this
century have
policy cer¬ concerned themselves greatly
with the effects of a
rising or
tainly
should
not declining rate of profit. True,
the profit motive as an incen¬
o v e rbe

Wi FUNDAMENTAL

-

Street, New York 5

BOSTON

3-210

London

(Representative

request

on

Established

Exchange
and other Exchanges.

25 Broad St., New York 4. N.

have dealt with the

fn

modern

for Banks, Brokers

Members New York Stock
.

(Continued

v"'

R. H. Johnson & Co.

to

LILIENTHAL

■:

COMMON STOCK

request

Hirsch & Co.
HIRSCH,

numerous

disaster

of

obtain

fact

Alaska Airlines

•

Nu-Enamei

Successors

interest

Parliament and by packed galleries,

'

■vC

Aerovox Corp.

-

to

things of lifev

tribe

•

Ordinary Shares

on

Likened

emerged clearly from the debate:
TSie terms of the
loan are strongly disliked
by supporters and opponents alike.
The
only difference between their attitude is that the former think the loan

Gaumont British

'/* Prospectus

Is

Similar

activities

Yet, few of the

potent

ministrative action.
It bears
though, in
its nucleus all the forces of
;
the proportion of those who understood the highly
technical problems must have been less than one in ten.
ruin to the free
enterprise
Paul

One

"A" &

a

ftearly as dramatic, but the debate itself was full
of
thrilling moments, and was followed with

:

3168.

Situation
and

in»their

the material

economic

the

of Com¬
witnessed last week its most exciting debate

breathless

page

and

1938

in¬

But

.

and

defense.

page

Prevails
Pact in

May, 1940, when, following the reverses in
Norway,
tlfe
Chamberlain
Government
was
^brought down. This time the outcome was not

sug-

simplest

means

(Continued

have

e

the

Tonic fc Stimulate British Economic Ef¬

a

LONDON, ENGLAND—The House

mons

t

terests.

Breakdown Is Widely Predicted.,?
\

is

r a

business

.

:

Munich

years ago, the
raising of in¬
terest

as

sentment

inflation

been
feared
10

11. N. Rublen

Was

House of Lords Assent to Loan Obtained So
to Avoid a Constitutional
Crisis, but Bitter Re¬

as

had

Photo:

Unpopularity of Loan Among
Accepted Only by a. SkillParliamentary Strategy. Socialists

It

Fear Terms Will Interfere With Economic
Planning
Rejection Would Be Bene¬

\

Device

Holds

and Others Think That

Forgotten

If

lightly,^
though not menace to progress under our
without pro¬ way of life, and will eventual¬
test
from ly lead to socialism and state
practical regimentation of individuals

Considerable

and

rfully Devised

im¬

minent.

Investment

Accepting Nationalization and Collectivism. !

To American Loan
London

Generally
ini¬

on

Cites Example of Decline of Profit

over

topic of infla¬
plays a
major
role.

con--

/

to Our Private En¬

a
policy of "Cost Up—-Prices
Down.'?.. The implications of this policy have been
passed

tion

speaking

-

The OPA has announced

the

tiation "is

V

,'

Profit Making Are Intensified, This Nation Will

dis¬

cussed

A

on

Emulate Other Decadent Powers in

policy, business policy ot an
individual
firm,
or
the
future
trends of stock or commodity mar¬
are

Copy

Margins in Great Britain and France, as a Basis for Accepting Socialism and Naf
tionlization, and Warns That if the "Costs Up-Profits Down"
Policy Is Continued

nomic

kets

:

Danger of Declining Profit Margins

Is An Indication of Industrial Decadence.

Charges That Government Is Attack¬
ing Results, Not Causes of Inflation, Which Will Lead to a Tem¬
porary Boom Followed by a Depression.
;
Government

a

1

Declining Profits

terprise System and Points Out That Trend Toward Lower Returns

Determine Economic Policy.

Wherever

Sections-Section

Price 60 Cents

By A. M. SAKOLSKI

Lowering Interest Rales Through
Central Bank Operations Has Been Abandoned and Is
Being Re¬
placed by a Confused System of Government Diagnosis and Control.
Holds That Common Belief in the
Necessity of Low Interest Rates
Is Not Valid, That Higher Interest Raies Are Not
Coincident With
Unemployment, and That Purely Fiscal Reasons Should Never

/

in ;2

V

The Menace of

By DR. L. ALBERT HAHN'

Dr. Hahn Points Out That the Old Device of
tion and Deflation by Raising or

O

Security
ST., N. Y. 5

Dealers

Aisn.

HAnover

2-0980

Teletype NY 1-395
Montreal

111

New

other

York- Stock

Broadway

New York
REctor

Exchange

Principal Exchanges

6

2-3100

10 Post Office Sq.
Boston 9

Hancock 3750

Tele. NY 1-1920

Toronto
Direct

Private

Wire to

Boston

THE COMMERCIAL &

Thursday, December 27, 1945

FINANCIAL.CHRONICLE

3130

The Investor's Stake inte/:;
The Anti-Trust Laws

in:

Trading Market*

Phenolic

American

Com.
Vacuum ^Concrete
Wm. Simon Brew
Lear, Inc.

U. S. Sugar,

king & king
Established 1920
Members

York Security Dealers Ass'n
Nat'l Ass'n of Securities Dealers. Inc.
New

HA 2-2772

PI., N.Y. 5

40 Exchange

•

TELETYPE NY

BELL

'V'-V' '■)
Mr. Javits Contends That the Anti-Trust Policy of the Department of Justice Stands Clearly Across the
Path of American Progress and Prosperity.
Says That the Anti-Trust Laws Are Being Enforced in a
Manner That Prevents Small Businessmen From Getting Coopera ively the Benefits of Marketing, Re¬
search, Prices and Full Employment Which Big Business Can Attain.
Big Business, on the Other Hand,
Is Finding It Impossible to Deal With Problems Like the Interrelation of Labor and Prices on an In¬
dustry-Wide Basis. The Anti-Trust Laws Are Used to Pro'eel Marginal Producers Who Otherwise Could
Not Compete.
The Investor Is Alsd Hart Through Undue Waste in Industry, Jeopardy of His Invest- ;
ments in Small Business, and Costs of Endless a id NeaTess Government Suits. ,.
.
.
...

1-423

We

Friends

All Oar

We Wish

story of the little boy who came
back from
Sunday, services and
when asked
b

a

A

familiar with the®

all

are

2?apptj

t

o u

s a

not

quite

get

clearly

but

it

he

$frut Uear

h

w

man

Former Professor at the

the

that

preached was
against sin.
And

Spanish Economist

;

is

it

so

Stock Exchange
N. Y. 5

120 Broadway,

No

WOrth 2-4230
Bell Teletype N. Y.

it

about

being

without

against it. But
there

about like the

Curb

quite

Telephone COrtlandt
Bell System Teletype

A. Javits'

The world follows

pat'

so

7-4070

Ins.

The arbitrariness and the
(Continued on page 3152) , |

buying.

Stock

Byrndun Corporation
A.

&

Pressed Steel Car

Caribbean Sugar
Common

4^2 9o- Conv.

Coca Cola

Common

inter n a-

collab¬

American

20 Pine Street, New

f

o

all

in

i t y
and happiness
s

p e r

seem

to

tries ask

world

MCDONNELL &C°-

Teletype NY 1-1843

;-'7\7'7^77.
Curiosity Shop" of

for?

economy,

Americans

can

discover primitive, unde¬
veloped, backward, war-disrupted

Members

York Stock Exchange
New York Curb Exchange

120

other coun¬

easily

New

Bates Man j!< during

V. Guardiola

Miguel

In "Ye Olde

York 5

Telephone: WHitehall 3-1223

people,

BROADWAY, NEW YORK
Tel. REctor 2-7815

some

surprised

Boston & Maine R R.

that

learn

to

strategems

administrative

suffice to suppress

.

at will unem-

Stamped Preferreds

Federal Screw Works

We Maintain Active

Gaumont British Pictures "A"

U. S.

Markets in U. S. FUNDS for

„

CANADIAN INDUSTRIALS

Kaiser-Frazer

Spain,

Bell

St., N. Y. 5

Teletypes—NY

1-1126

&

Membert N. Y. Stock Exchange

St:

115

Paul, Old Pfd. & Common
Grande, Old Pfd.

and Other Principal Exchangee
NEW YORK 6, N. Y.

BROADWAY

Telephone BArclay 7-0100

Denver Rio

,

Goodbody & Co.

1127

New

Segal Lock & Hardware
Preferred

Old Pfd. & Com.

Wellman

Rock Island,

Common

Engineering Co.*
Common

Old Pfd. & Com.

Kingan & Company, Com.

Seaboard Air Line
Com.

*Ctrcular

Western Pacific
•

-i.

I

Old Pfd. &

Bought—-Sold—Quoted

L7D PINE ST., N. Y. 5 WHitehall 4-4970 I
Teletype NY 1-609




I

Simons, Unburn & Co.
Members New York

25 Broad
HAnover

Stock Exchange

St., New York 4, N. Y.

2*-0600

'i -

'; ;;

and

'■*!

-•

;*••••»!1

7

Request

on
y;

••

".

-

!.'v V v-*-•'

■

Frank C.Masierson & Co.
York Curb Exchange

Members Sew

NSW YORK 8
HAnover 2-9470

WALL ST.

64

1-1140

Teletype NY

"full

2frui Hrar's

my

country, known foi

(Greetings

ol

financing,"

is a

F. H. Holler & Co., inc.

period Vaftei

difficult

the

In

Members

economic

111

policy invigorated our economy
and strengthened our finances. A

permanent surplus of emigration
gave way to an intense process ol'
repatriation,; .Unemployment was
practically nil except for some re¬
gions where urgent agrarian re¬
forms have been postponed since

N.

Ass'n

Y. Security Dealers

Broadway, New York 6, N. Y.

7t

5

I

BArclay 7-0570

NY 1-1026

—♦

m
r

"

'

'

'

*

'

Howard Aircraft/- "'

Colonial Stores

^

.

]

|

v

Teletype NY 1-672

V

VMi-fits

War enriched

First World

and

the consequent inflation
again. Spain has always

us

!

'

7

•

unnecessary

(Continued on

bureaupage 3157)
:
civil

Common

& GAS

Preferred

*

*

*

Members New

120

Banks, Broker? &

Dealers •

SOLD

—

n

,

York Security Dealers Assn.-.

•

'

;*•'/'{

Y. (

Teletype NY 1-2361
■
O

REctor 2-7634

CORPORATION

—

..

Broadway, N. 3T. 5,

'i'v \ '

r;

C*:- '];*

'/• ;lv»

& Gas Corp.
Common

BOUGHT

^

C. E. de Wiilers & Co.

Common Stock

Trading Markets for

•'

:

Federal Water

FEDERAL WATER

Pathe Industries Inc.

•

,

practised classic "deficit financ¬
ing," i. e. loans to maintain pur¬
chasing, power.,.. What Professor
Abba B. Lerner would call a ?Pe¬
riodical Distribution of Free Income" was disguised as salaries
for unnecessary generals and offi¬
cers,

•'•, *.•

Macfadden Pub. Inc# ^ |
Pfd. & Com.
;
'
2

; «

'

■

.

|

Stock ^

QUOTED

Memorandum-on.request
' • ••
;

SOLD

BOUGHT,

&

QUOTED

7

''

Request

Com.

G. A. Saxton & Co., Inc.
^

Upon

j

Common

"Prospectus

employment

1898, the most orthdox

.

Pfd. &

777

living example of the above.

•'

Old

Mfg.*

Hotel Waldorf Astoria

".

York, Ontario & Western
Old

Brunner

most countries

Frisco, Old Pfd & Common

New Haven,

'

.

,

their

"deficit

cluding

35

Missouri Pacific, Old Pfd. & Com.

Common Stock

,,y

long history all types of mis¬
taken economic policies, not ex¬

us,

Canadian Securities Dcp't.

.

.

Hanover 2-4850 •

Central States Elec. (Va.)

its

The

CANADIAN UTILITIES

Security Dealers Assn.

Members N. Y.
37 Wall

<\

'

CANADIAN MINES

omp mSt
anu

'

having tried out in the course

ruined

5reene

->

lr191d

System Teletype NY

Bell

1

thousands of years.

CANADIAN BANKS

Sugar, Common

Exchange'

New York "Stock

ery.

be at

What else can

reach.

v y

Broadway WHitehall 4-8120

50

employment" means nothing if it
is not related
to a satisfactorily
increasing standard of life. They
care
for j "full.
employment"
spreading prosperi+v not for "full
employment" consolidating mis¬

to
the

countries.

Bought—Sold—Quoted

Me m hers

full employ¬

country knows, instinctively
from
sad experience, that

under

oration

Pro

Pfd.

Stock

H. G. BRUNS & CO.
Bell

strong

tional

Industries

Warrants v

-Members New. York Curb Exchange

problem by copying the American
pattern, even if the latter were
defintiely established. Undoubted¬
ly, this is not the case.
Every

trend in favor
ef

solve

cannot

and

(b) ia

'

-■

It is obvious that

pro¬

war

duction

life

Stock
.

Panama

of

standard

Preferred

skeptical. *

paroxysm

raise

Campbell

S.

the

leadership

Common

Common

during

tained

:

Edward A. Purcell & Co.

ployment and poverty. They are
to benefit b,v this sudden
outbreak of humanitarian smartmess.
; They V are,
though,
very

ard of life at¬

organization developed
during the 70's and 80's by which
a
group
of companies virtually
trusteed every power, except the
ownership in certain hands so that
there would be common practices
such as in pricing,
selling and

NY 1-1548

^ Textron

eager

highest stand¬

an

Chemical^';

Greater N: Y.

essential aspects: (a) blind faith in

the

of

^

Federal Asphalt

mainte¬

the
nance

''7

'

I

v

*

anxiously American debates on

It holds out two

policy.

ment

Pressurelubc

Gaumont British

Cbincide With-Improvement in Their

Economic Progress." ;

With Worldwide

t.

in, most

oly is

Exchange

Bankers & Shinpers
Capital

Benjamin

great deal of con¬

a

;
A trust in the sense of monop¬

New York 5

31 Nassau Street,

to

people's thinking
and to
even
more
confusion in
their talking and which are not

Y. Curb Exchange

York

led

fusion

Vanderhoef & Robinson
New

i

that

■

3/6s, 1956

Members

ust

Ant i-T
Laws
have

Savoy Plaza
N.

talk

do

we

7s, 1952-1957

Traded on

things

other

international
Power Securities

•

are

v

■

of Labor.
Difficult io
Achieve in Large Countries, and Altogether Impossible, in Small
Countries.
He States That 'America Preachesv About: Enlarging
Foreign Trade,' but Asks Who is Going to Pay Tor the Necessary
Import Surpluses.
Foreign Investments Cannot Solve the Prob¬
lem.
The World Hopes That America Will Find a Way to Make
Its Own Prosperity and Full Employment Policies ^ Compatible

can

one

talk

1-1227

NY 1-1557 ;

La.-Birmingham, Ala. j

Rademaker

of

Standard

MONOPOLY.

St., New York 4, N. Y." 1

Direct wires to our branch officer

,

Living and an f Accompanying ^Division
Without Substantial International iTrade rThis ;Will Be

with the word
Members Baltimore

(

of the*

7-'* \
Says That Full Employment Is Meaningless for

Most Countries if It Doei Not

>

Request

on

HAnover 2-0700

Parliaments.

Spanish and Catalan

;V'-:-^v

o

\ !

Quoted

Members New York Stock Exchange

25 Broad

e

University, of Barcelona, and Member

—

Steiner,Rouse&Co.

MIGUELlyiDAL GUARDIOLA

By

pos¬

was

itive

Analysis

Reaction to American
Full Employment Aims ||||

did

he

Sold

—

New Orleans,

;

T.

__

Bought

:

—•
_

& CO., INC.

,

A Foreign

what the sermon was
i d
7 r;

that

JAVITS

By BENJAMIN A.

7

|

P. R. MALLORY

Tele. NY 1-210

Troster,Curries Summers
Members N. Y.

N. Y. 6
HA 2-2400
Teletype NY 1-376-377

74 Trinity Place,

Private Wires to

Detroit

-

J-G White 6 Company
INCORPORATED

Security Dealers Ass'n
37 WALL

STREET

Cleveland

Pittsburgh

-

St. Louih

NEW YORK 5

ESTABLISHED 1890
Tel. HAnover

2-9309

Tele. NY 1-1815

MEMBERS NEW

One

Wall

YORK STOC*

UtXCHANGE

Street, New York 5,

Telephone

N. Y-

BOwling Chreen 9-4800

'

f

>.

'

■■

i't

xJ,

'

i«u-

'

'

I*

'

niii

1

4

Number :4450

,Vohimecl62

THE COMMERCIAL & FINANCIAL CHRONICLE

Fall Piodnclion and Sound Fiscal

Outlook
Investment Research

By STEPHEN M. FOSTER

Advisor, New York Life Insurance Co.

7j Investment Analyst Sees

^

Holding That in 1945 Our Economy Operated Close to N
; Capacity, Points Out That the Chief Problems Ahead Relate to:
7;>: Fiscal Policy. Says Low Interest Rates, Adopted as a War Policy,;
Together With the Method of Government Financing Through the - /

Commercial Banks, Constitutes
That

an

Civilian Buying Spree Can Be Offset by the High

,//

a

Productive

The

transition
from

to

would

peace

poses

tastic.

serious

prob¬

the

war

one

thing, we lose
the.Governon en

t's

war-

effort

vast
as

the

cash

and services.
Also, from another
ppint of view, they give an indi¬

by the filling of ci¬

produc¬

vilian

wants,u and

tion, .employ¬

ments

that

another,

the

has

war

fiV
"
n a n c i a 1
changes which, may offer a threat
to. future economic stability; for
still a third, the singleness of pur¬

type

of things

duces,
tails

its

chases.

wrought

•

the

the

as

country
and

that

-war seems

least

.at

enjoyed during the

we

to have been

the

for

replaced,
by in¬

moment,

dustrial and economic strife, These

problems require
tention lest

careful at¬

our

failure to under-

our

pro¬

its

Fiscal

The

importance

the

to

and post-war

has used Tor financing its
purchases of approximately half
tike nation's annual production of
ment

.

$200

over

services.

billion
There

of

goods;; and
obvious

two

are

astand and solve them should keep

methods

borrowing. 7And all through nhe

of

ahead.
-while

that

enjoyment "bf the

opportunity , that

Accordingly,

lies

it is worth-

to" review -the- conditions

;

in

existed

'Germans

down their

1945

the

and

*

before

the

laid

Japanese

; For it is these
•conditions and the circumstances
arms.

.surrounding than that have given
rise to many
lems. ;'"V

Economy

\

of

our

present prob¬

Capacity

of

to

available;■. taxation

1945 the country's

econ¬

and

both,> placing a somewhat
greater' reliance- on - borrowing
than on taxation.
Thus, in: the
use

half

of

the • Govern¬

1945,

ment's" expenditures of $52 billion

only partially met by income
receipts, and the Government bor¬
rowed,
exclusive
of
refunding
were

The vast
ments

billion
?

of

./

-

new

77

new

money,

during the past two

three years

or

have heen running at the rate of
almost $60. billion per.year,

might,

operating at close to
•capacity. It is true that some eco¬

o,n the basis of the law of supply
aind; demand, have been expected

nomic factors, notably total indus-

to

omy : was

trial

cause

interest rates

of money)

(the price

had

receded

their

wartime

interest rates

peaks, nevertheless industrial pro¬

ernment debt

duction still stood 111 % above the

the $300 billion mark would have

production,

?

somewhat-* from

lever of 1939; wages and
salaries, 150%farm income from

a

marketings, >151%; and the

tures.'.

prewar

gross

f national product, 133%. And, of
•course,
an

ment
;?

7

It
for

employment

was

about at

all time record, and unemploy¬
was

practically non-existent.

cannot
a

be

too

often

stated,
clear understanding of the

reconversion

difficulties, that the

to rise.

During

established

a

(Continued

j

perhaps in an exag¬
in isolated instances
view of the thinness of mar¬

-

77';

-''U. 7\777-77;

^Auspicious Beginning

definite

for.

t

nearer

impresses
favorable

;

Members New York Security Dealers Assn.

policies
more

labor
to

seems

39

be

now

New York

considered

increases

now

by

O.P.A.

whenever

to be

are

O.P.A.

fair

*U. S. SUGAR

"generally
equitable level".
Also,

and

a

*

this

creases

are

necessary to

years very

is

reflection that

twist

than

After all,

a

up with
they start
year is a

sufficiently long period of time to

New

HAnover

/

mentioned above.

Price

lines

trends

continue

ward.

of the

practically all
persistently up¬
'

BEST WISHES FOR

already above the peak
period.

Retail prices,
the other hand, are still
slight¬
below the level reached just

ly

a

renewed

upswing can hardly be long de¬
layed in getting under way. De¬
spite. statistics to the contrary, it
might
be
observed that
retail
prices are far higher than actually
indicated

by

until

seen

to

which

.

they

come

^Materializing.
And

in, this

•

quite

are

.

unfore¬

very

close

A
and

respect

there

are

even

to the casual observ¬

Est, 1926
AW
CJL

«

Members New York Security Dealers Assn.

170

is

(Continued

on

page

&

RIOD

that price control in
many
lines is more apparent than real.
er

Happy

Prosperous

the

figures due to
and (2) virtual
disappearance of all except higher
priced goods.
The obvious con¬
clusion

.

Angreles

in
•

Wholesale prices today are
double the 1926 level

war

2-4785

Bell System Teletype, NY 1-2733-34
Private Wires to. Chicago & Los

i

than

are

Yorjc Security Dealers Assn.

40 Exch. PL, New York 5, N. Y.

without the power to veto price
advances
within"' the i categories

pjermit . coming into play certain (1) lower quality
events

Request

Members

Furthermore, O.E.S. (Office of
Economic Stabilization) v is now

,

frequently end

different

with;

a

on

J.F.Reilly&Co.

"prevent

hardships impeding reconversion".

prior to V-J Day but

observation

the'result of

Circular

increases in prices are to be per¬
mitted
when
O.P.A.
finds
in¬

on

Perhaps

Teletype NY 1-1203

*DU MONT LABORATORIES

in

permitted
they are

finds

necessary to maintain

picious circumstances than might
be';experienced at the end of the

7-

6, N. Y.

HAnover 2-8970

"fixing prices".; Moreover, price

and

year,'

Broadway

be

along the line of
from price
con¬

rereat

1. GOLDWATER & CO

..

i

might be recalled, for
instance, that under present di¬
rectives wage increases up to 33%
above January 1941 levels must

year bids fair to
start out at least under more aus¬

Broadway
Bill System

WOrth

2-0300

Teletype NY 1-84

3168)

the

Punta

We

rate

interested in offerings of,

are

tech¬

~

*

,

Lea Fabrics

High Grade

.•

Alegre Sugar

Eastern Sugar Assoc.

.

U. S.

.

'

Public Utility and Industrial

at

3161)

Sugar

Pressurelube, Inc.

PREFERRED STOCKS

'

77;

■

the

this

more

It

more-

f! The; coming

interest rates

on page

Taylor Wharton Eron&Steel

way

kets.

expendi¬

DUNNE & CO.

Spencer Trask & Co,

Members New York Security Dealers Assn.

25

;?7'725 Broad Street, New York
*

..

.

Telephone HAnover 2-4300
Members New

r;

Teletype NY 1-5

York Stock

Exchange

Broad

WHitehall

'

St., New York U, N> Y.

3-0272—Teletype NY 1-936

Private

Wire to Boston

.

Public National Bank

Inquiries invited from dealers,
estates, corporations, banks, in¬
,
.

_

Lawyers Title & Guar. Co.
N. Y. Title & Mtge. Co.

32

New

Vork

Security

Broadway

DIgby 4-8640
Teletype NY 1-832. 834

Ilewburger, Loeb & Co
WHitehall 4-6330
►

Direct
New

Dealers

Ass'o

Wire

Trust

Income 4s,

j

j-

•'

;

^7^7..

"7

'"'f Common and Preferred

7'7::;

Bought—Sold—Quoted

i"

V

Radiator

Analyses
to

»

1965

Bonds and Odd Pieces

National

j

Co.

Republic Pictures

^

Co.

available

dealers

only

CHICAGO 4
Harrison 2i)76

Hon. Rose S Trsster

■

Teletype CG 130

Service

York—Chicago—St. Lou»«

Kansi'

&

American Bantam Car

7

;

Board of Trade Bldg.

NEW YORK 4

Members New York Stock Exchange

4%

STRAUSS BROS.
'•"mb^

Prudence Co.

-

:

stitutions and individual holders

Lawyers Mortgage Co.




hardly be surprising if this
phenomenon should hold true to

ar

Polaroid Corp.

con¬

UNLISTED

Bond & Mtge. Guar. Co.

5

any

Would

out

United Piece Dye Works

SECURITIES

CERTIFICATES

Bell Teletype NY 1-8033

hardly

fdrm—and

Blocks of

TITLE COMPANY

40 Wall St.. N. Y

was

;

MARKETING FACILITIES
/

Billard

j Traditionally 1 speaking, " a rise
during the year-end" week is one
of the most pronounced seasonal
periods-in the entire year and it

Nationwide

•'

Y.

7-;

lpw: The Federal Reserve- Banks

-the first half of 1945, these expen-

i

on

wartime

a

keeping

operations was the war and the
j rtures of the Government.

Gordon

vestors seeking to utilize idle cash

rise in.

a

postwar

ities «adopted

1 unprecedented wartime expendi-

trols.

funds; V:«

Accordingly, early ? in the
the monetary control author¬

nique for

j;

gradual

covering
of
existing
positions—and furthermore
shorts had to compete with in¬

«'

and

more

short

j

United Artists

,

key to reconversion,

other

and

or

ently rising
prices and

in

and

distinctly

The

consist¬

gerated?

YORK

too prema¬

important is

outlook

as

than otherwise.

as applied to a Gov¬ certain events
mainly of a politi¬
rapidly approaching,
cal nature which-can be visualized

Government's

prime motivating force behind
this
capacity level of business

''

But

highly unfavorable effect

war,

more

more

require-:
the, Government, Lwhich

of

us

encing months

.

first

<

^7.7,-;' r'7

-

Government has elected

our

operations, f; $27
money,'.-..
*
to

Close

Operated

A first important circumstance
to bear in mind is that in the first
half

war

term

were

extensive

period is the meth¬

NEW

perhaps

serious

any

STREET,

Telephone WHitehall 4-6551

pronounced

a

seem

warrant

oldr including

/What's Happening

probably suf¬
ficiently' alert
after
experi¬

1 ess

rate

any

to

More

ir^ sufficient volume to permit

reconversion

at

Short

Covering

of

summer or

quite

the

out

WALL

99

sideration for the present.

presumably

methods which the Govern¬

or

and

ture

took prompt advantage of the set¬

77 j A second circumstance of great
od

most

cur¬

Policy V

—ring

the old obsoletes.

Such
events, however, at this time are
largely in the realm of conjecture

re¬

ground

j Shorts

have

adverse effect marketwise.

pur¬

Ps from the full

wealth

*

the

might, by

sooner,

v7 77<7:7//;7 back, but liquidation

;

;

in

Government

...

pose

made

effort

war

readjust¬

the

be

must

I

the

nation's total production of goods

the slack that needs to

con¬

of the

con¬

up

sumption;' for

covered

customer,

be taken

be¬

had

week

lost.

be

that

jn d • by the
e
jn d of the

They enabled the Govern¬
to

cation of

force

its

a

previously

largely for immediate war
sumption, of about half of

NEW YEAR

in

following an unfortunate radio episode
sudden and sharp drop early in the week but the market
re:-V.v-' <3>-

have been considered fan¬

ing

ment and

Stephen M. Foster

ment

a

c'iomposure

were

the motivat¬

hind

.

ditures

running at the an¬
nual rate of $104 billion, a figure
which only a few years earlier

lems;; For

\

7

quickly
gained

saw the defeat of our enemies abroad;- it
home, a period of great promise for social and
7-;^economic well-^

course,

>

brought

HAPPY

a

Concentrated liquidation

-

in,; at

7 bein g.; O f

in Outlook Is the Tremendous Rise

the Public Debt Which Is Affording

i

^

1945 not only

year

nishered

AMD COMPANY

Co.

Large Money Supply and Is a
} Potential Inflationary Influence. Says There Is
Plenty ef Dynamite
i in the Market Situation That 100% Margins or Increase in Capital
! Gains Tax Cannot Remove.
■7--'-.;
■' • v"

7

Capacity.

&

Favorable Factors in the Near-Term

as

dency. Holds Basic Factor
id

Inflationary Threat, but Contends :7;

Reserve
Sees Need of Settlement of Industrial
Strife and Holds Outlook Depends on Proper Decisions Regarding
I Labor, Management and Government Relationships..
<
♦
of

Department, J. R. Williston

i Outlook
(I) the Progress Being Made in Reconversion;
(2) the
/'Gradual Retreat From Price Controls and
(3) the Price Rise Ten¬

Mr. Foster,

jj

R. S.

By G. Y. BILLARD

Policy Can Prevent Inflation
Economic

3131

City—Los

-

T

;

A.H1.1SITED

-

,

74
Tele'nhone

Trinity Place, New York 6, N. Y.
BOwIing Green

♦

9-7400

C. E. Unterberg & Co,
Members N. Y. Security Dealers Ass'n

1014

Teletype: NY 1-375

61

Rroadway, New York 6,

Y,

Telephone BOwlitigr Green 9-3565
Teletype NY 1-1666

Thursday, December 27, 1945

CHRONICLE

& FINANCIAL

THE COMMERCIAL

[3132

Miinik—

V-, -

The Cost of

Structure

W4KD & CO.

;

LIVINGSTON*

By S. MORRIS

,

Government"

Chief of the National Economics Unit

est. im

Foreign and Domestic Commerce

Bureau of

'

?.X?

/;

-.>

"Extra-Ordinary

By HON. HUGH BUTLER*

Conditions During

u

War, and Concludes There Has Been a General and Substantial
Advance in Prices of Civilian Goods Reflecting the Demand on

4?

Commerce

Dapartment Expert Analyzes Price

Transportt

Air Cargo

Alaska Airlinest
American Bantam Car
Com.

Pfd.

&

American Hardware

Limited Supplies.

Amer. Window
Com.

,

v

Glass*

&1 Prd.

.•

during the re¬
conversion per

ply

Hartford-Empire Co.:
Kingan Co.

Lamson & Sessions*

ma¬

Oxford Paper
'

Pfd.

Price Incentives

interrelation

of this in
trends,
fact; of course, that the

the importance

Taca

United Artists

:

expansion in the pro¬
goods and the shift

duction of war

the armed forces
accomplished entirely by
of the prices of those
goods and services in competition

boom
collapse

not

were

bidding

up

with the alternative civilian pro¬
duction. They were

accomplished

in part by direct means—priori¬
ties, allocations oi materials and

restrictions

on non-war

the

*Bowser lne."

<:

Cliffs Corp. Csm.

.

Cleveland Cliffs Iron Pfd.

You

do

lobbying

Bought

Industry.

;-iIt

brought to

you
good at activating
ideas, or maybe it is motivating,
or maybe it is implementing ideas.

We have' a

At

New Jersey

Worsted
Wrnts. & Pfd.

) Textron

United Piece Dye
UTILITIES

rate, I have read

any

115

Telephone BArclay 7-0100

■

passed

went

Wash¬
bet¬
output from the biggest busi¬
the

in

In

of

you

Nebraskan.
! But I'm

*Prospectus and

Study

Special Letter Available

or

•

Pub. Serv.

Members

New

.

,

York

Security

Dealers

by Senator

Association

Hanover 2-7793

PRESSURELUBE, INC.

KENDALL COMPANY.

SPORT PRODUCTS INC.

GLASS

SHATTERPROOF
FASHION PARK,

Members N. Y. Security Dealers Assn.

THE

120 BROADWAY, N Y. 5
*•'
REctcr 2-8700

•

Buff. 6021

INC., Common
COMPANY

FOUNDATION

SEGAL LOCK & HARDWARE

Herbert D.

•

Editor and

Seibert,

;-

Publisher

Dana Seibert,

President

Thursday, December 27, 1945

i

Published

twice

>

7,

(general

1

week

a

Thursday

every

news and

advertising issue)

and every Monday

Other

Chicago

Offices:

3,

111.

135

S.

La

(Telephone:

Salle

State

St,

0613»:

Drapers' Gardens, London, E. C.. Eng¬
land,-c/o Edwards & Smith-"

Copyright 1945 by William B, Dan.
Company
■••V;.. ,-* „>

'

Reentered

KAISER-FRAZER CORP.
;

HYTR0N RADIO

ruary

^

25,

1879

as

second-class matter Feb¬
at the post office at New

1942,

Under the ACt 0f Marcn

*

Subscriptions

& ELECTRONICS

CORP.

in

United

:

ana

ot'^S
inSouth
Dominioni'
Canada, $*£0«°nper
$27.50 per year;
year;
and
or

ofwtral^n^,erlca" sPaln,
I

7% Pfd.

States

Mexico,

and

Si,
Descriptive Circulars

on

Incorpcrated

Members New

41

Broad

York Security Dealers Association

Street, New York 4

f
per year; Great Britain,;":
Continental
Europe (except Spain), Asia,

request

Seligman, Lubetkin & Co.

Bos. 2100




'<-0

'

^

?

V

WELLMAN ENGINEERING COJ

Jlaptfd 6111

Publishers

William

r.

.

k

Of/ice

Company

1

SUPERIOR TOOL & DIE CO.

.Direct Wires to Chicago and Phila.
'
ENTERPRISE PHONES
-

Patent

(complete statistical issue—market quo¬
tation
records,
corporation,
banking,
and city news, etc.)

:Teletype NY 1-2425

WALT DISNEY PRODUCTIONS

1-1287-1288

S,

1945.

Bulletin or Circular upon request

Y.

U.

cleaiings, state

f[Prospectus Upon Request

N,

and

William D. Riggs, Business
Manager

Anniversary

New York 5

70 Pine Street

spending

war

page 3146)

COMMERCIAL

-

•

Butler

sociation, New York City, Dec.

'•

.

>

relationship is

Golden

on

REctor 2-9570 to 9576

)

at least half-

....

our

,

25 Park Place, New York 8

Congress of American Industry of
the National Manufacturers As¬

FIRST COLONY CORPORATION

sharply

'

...

if

all surprised

were

sure

the

before

Special Letter on Request

how

Reg.

fPittsburgh Railways

f Y orkf Corrugating
f Statistical

at

the Treasury
granting relief

William B, Dana

produce steak, cheese,
and such.
Speaking

be

meas¬

Congress

high wartime rates.^

The

^astronomically or metabolically,
whatever the medical term is,

most

than

to go in

us

some

The

FINANCIAL CHRONICLE

or

F wouldn't

i

Congress

and

of Farm

slightly different sense, we
Nebraskans get most of our in¬
come from the processes of change,
too. ; In our case, we mix seeds
ham

relief.

farther

know

a

and soil to

individuals

(Continued

Kinship

The

for

......

.

the

weeks,

and

bills

f But ^ Congress
could "approve
only a limited reduction. You who
had r your
contracts
terminated

Federal

world—our

reviews

,

.

tax

wanted

-Industry

*M. H. Lamston, Inc.

Financial

tax bill which gave busi¬

a

of

ure

,

and

ness

Dept.

^Simplicity Pattern

their

and

taxation i

recent

from

ness

Iowa Southern Util.

*

In

need some

flour,

American Gas & Pow.

North'n New Eng. Co.

passage.

into reali¬

practical changes down at

tAmerican Insulator

Our

which

recommends

The point is, we

ington to get a bigger and a

tLe Roi Company

taxes

sub¬

both

are

One of my duties as Senator is
serve
on
the Senate Finance

You change dreams

*0xford Paper Pfd. & Com.

105 jWest Adams St., Chicago
Teletype NY J-672

Broadway, New York

We

business futures.
of

Committee,

that

Omaha.

*An address

New Eng.

to

able to take a hunk of
coal, a pinch of salt and stir them
up with a breath of fresh air and
behold: you have nylons—and a
line of frenzied women from here

' Merck & Co., Inc.

and Other Principal Exchanger

Government

Problem

are

you

"

special study prepared by our Research

in¬

perplexing

same

about
our

Core

The

"gobble-degook,"

as

on

of

fellows ~ are;

.

[

effect

exactly

and market

men

the

over

concerned

at
in

brainy bureaucratic language

our

known

have

sidies and handouts.

•>

..::

:'

Members N. Y. Slock Exchange

I

„

bottle

depreciation,

reserves,

dilemma

Hugh Butler

my "

that

men of industry are good
changing things.
As they say

;

Aspinook Corp.

,

,

.

We

you

ties.

GOODBODY & Co.

S Alabama Mills*

al¬

ink

considerations

overhead, hired
risks.

•

week

every

red

language, with

same "

vestment,

been

ways

the

Farm and factory talk is

same

the

Government.
*

TEXTILES

j'

the

of

has

.attention

to

Crowell-Collier Pub:

Sold - Quoted

-

of

market

to

uncork

we

again.

at
annual

beef

a

cattle

or

o w n

my

really

fat

little

a

production,

talk

and

It
factory, and its
output has got to be a carload of
is

I

chance

a

pro¬

this life is my Nebraska ranch.

so

looking

w a s

talk

farmers

production and more production.
About all I've got to show for

and

body. It
happened

desks

your

are

select

Our

duction, production and more pro¬
You factory men. pound

duction.

manu-,

facturers
a

ter

Waltham Watch
Warren Bros. "C"

The Cross Co.

American Hardware

"

,

cousins.

ticipated
occasion.

a n

this

Congress

,

U. S. Truck Lines

'

Before anything else, I want to tell you I regard it my privilege,
not yours, to be able to address this greatest of industrial forums,
because
I
Vmore
than
being
just
"belly"
have
eagerly

v

Novem¬ production and the draft—plus the
ber 1945 issue of "Survey of Cur¬
whole pattern of voluntary coop¬
rent Business" published by the
eration in the war effort insoUnited
States
Department
of
(Continued on page 3148)
j
Commerce.
~

Airways*

Spending.

your

It is a

{

r

considering postwar price
:

)

v

;f Pressure Groups and Privilege Legislation.
Wants Streamlined
Government and a Unified Budget With Full Accountability for

to

of manpower to

necessary?
from

r

Will Come Until Federal Government Curbs Its Expenditures* Calls
Attention to Byrd-Butler Bill Which Provides That Government
'Corporations Must Come Under Congressional Scrutiny and Warns
[That New Similar Corporations "Under Sweet and Noble Titles"
Are Being Placed Before Congress as Additional Payrolls and Pay
Checks.
Says Spending Spree Is Over and End Must Be Put io

I

be expected in peacetime;
nevertheless, it is easy to exag¬

enormous

forward

to reasonably
stable prices? Are individual prices
so out of line that widespread ad¬

^Reprinted

)

for

It H. Robertson f||;

[

be¬

supply/ demand and prices
that which

resources,
.

Polaroid Com.

i

;

&

Com.

we

followed the last war, to

justments are

a

has been different from

gerate

speedy deflation, or

Natl. Vulcanized Fibref

t

as

on

wartime

might

tionary

S. Morris Livingston

such

Mohawk Rubber

Mallory

tween

aninfla¬

to

and

Michigan Chemical

P. R.

Reliance

readjust¬

look

the price structure, t

on

The

ments?
Must

there-

Heavy

Sees

$30 Billion Deficit Next Year and States That No Real Tax Relief

i nf 1 uential

the

for

need

jor

Kaiser-Frazerf

i

erating

sup¬

suggest

got

we

together with an evaluation of the
current and prospective forces op¬

the

price relation¬
ships and costprice
profit
r e 1 ationships

Industries*

how

and

are

we

demand-

-

is

to have the background
current.' situation—where

the

of

and
fter?

of.

ture

these questions it

answer

necessary

struc¬

whole

Douglas Shoe*

,

d

o

e r e a

Does

Dayton Malleable Iron*
Du Mont Lab. "A"

Gt. Amer.

i

t h

Cinecolor, Inc.

;

be expected under conditions

To

_

S. F. Bowser

war? Is it

level reached by the end of the

What about the price

seriously out of line with what might
which we face<"*>

.

Federal Expenditures to "Extra-Ordinary" Government.

!

i

INDUSTRIALS

U. S. Senator from Nebraska

Prominent Member of Senate Finance Committee Ascribes

i

Holds Supply-Demand Relationships at End of ;
'War Created Both Inflationary and Deflationary Pressures.; Says
i
That Analysis Shows That the Areas in Which a Change in Supply- \:j,
Demand Relationships Will Create a Deflationary Trend Are c at * 1
Present Larger Than Areas of Inflationary Tendencies and That g
Even if Consumption Increases 50% Above Prewar Level, Result-'
ing Increased Demand Will Increase Production Rather Than Lead ^
to Higher Prices.
Holds Large Wartime Profits Prevailed in Every ^
Major Segment of the Economy and That After Reconversion, a
High Volume of Productivity Will Make Possible Wage Increases.

i

i

HAnover 2-2100

Australia

HARDY t HARDY
11 Broadway,

New York 4

Telephone

Teletype

WHttehall 3-4490

NY 1-960

and

Africa,

$31.00

per

year.

Other Publications

^anl^^nd^Quotatlon Record—Mth.$25
Monthly Earnings

<

vr.

Record—Mth...$25yr.

ir1Nr?IE~:On/CC0"nt
of the fluctuations
the rate of
exchange, remittances
m

for

fO'reign subscriptions and advertisements '
must

be

made

in

New

York funds.

Volume

h

162

Number

THE COMMERCIAL &

4450

FINANCIAL

CHRONICLE

3133

Agricultural Question j Expert Discusses International Use
Mark of 1946
Prof.

/'"'VvSecretary

v\

of Agriculture J

;

Between Farm and Factory Production.

Warns Against a Drift
Into a Policy of Scarcity and Urges a Full Production Goal for ;
Agriculture to Be Counter-Balanced by Full Employment in Indus- j
try.
Says Present Price Parity Formulas Are Out of Date and That j
New and More Flexible Formulas Should Be Used to Encourage a (
Better Balanced, Diversified Agriculture, and for This Purpose He
Proposes Conferences Between Farmers, Labor and Industry to ;
ance

Plan Production Schedules.
The

coordinated, progressive action
the

;

,

need for

standard

:

of

is

a

-

.living

all fronts to maintain and raise

on

American

*

—

smother them with the munitions
machines

and

of

war.

'I^

'

/ No group

familiar timer
tested

phi¬
losophy..; It is
an
idealistic

than

the

kind

evidence

that

it

around

in

us

s

works

all

the

un-

rpassed

u

and

vital

and

We

industry.

strong,

a

rewards

Clinton P. Anderson

day

ery

lives in the form of

democratic nation, to organ¬

ize into
to

one

great productive team

outproduce

our

enemies

and

;

MADE

*

;

.

ON

•

»

r

•

what he

I

produces.:
/•
always glad to meet with

am

the American Farm Bureau Fed¬

representing

eration,
hundreds

address
before

derson
vention

of

the

developed

and

tested,

test

fission, of

great

briefly

ite

the
in

nitely.

energy

for in¬

run

d

n

and

expressed
ments
may

already

made, such
about though he

come

pressed

doubt: whether

obtain

Bureau

Dec.

to

be

Standard

y

Some

first

chain

Lake

Andian National

a

small,

are

some

Canadian Pacific

they

bombs

arc

prob-

v

made

were

of

program

all

and

as

a

have

(Continued

on

Electrolux

Hydro Elec. Securities Com.

v/vMY International Utilities
Jack Waite Mining
Kirkland Lake Gold

factors:

Minnesota & Ontario
/ y

feature

3145)

;

&

f

New York

"•. >

Direct

Noranda Mines

*

Premier Gold Mining

/

Chicago

•

32

St. Louis

•

*

Kansas City

Broadway-

ST., N. Y.

WILLIAM

52

Teletype

5.,. HAnover 2-0980
NY

1-395

Montreal

New York

Los Angeles

•

ST.

'

y

Toronto

General Public

CHICAGO 4

.

', V'

Harrison

'

Teletype NY 1-832-834 1

Teletype

,

Utilities

2075

CG

Common

129

Baum, Bernheimer Co.

LOUIS

& CO.

-

Board of Trade Bldg.

DIgby 4-8640

v

j
f

KANSAS CITY

Pledger & Company, Inc.

Members New Orleans Stock Exchange

Mission

LOS ANGELES

New Orleans 12, La.

41 Broad St.

HART SMITH & CO.

COAST

-

White & Company

T. J. FEIBLEMAN

■

Pend Oreille Mines

Private Wire Service

0; NEW YORK 4

Steamship?!'

OF

New York 4, N. Y.

Paper Co.
Nipissing Mines ^
\

STRAUSS BROS.

i

Standard Commercial Tobacco

Mining

Massey-Harris Co. Pfd.

atomic

one

page

Lumber

Hamilton Bridge Co.

gen¬

part of the

developing

„

Rwy.

Canadian Western

enormous;

which

power

Corp.

7% Pfd.
Com.' & Pfd.

Brown Company

de¬

maintaining

orj

Members New York Security Dealers Ass'n
;

u

Assoc. Tel. & Tel. $6 &

self-

varied

mary

based

the

but all

COAST-TO

j

;

Dry

Carondelet Bldg.

Bo. f)-44.12

,

Bell Tel.—NY-1 -493

,

'

,

,

:

Chicago and East Illinois RR.

PANAMA COCA-COLA

Chicago Great Western Ry.
Consolidated Film Industries
Consolidation
:

Quarterly dividend payable January 15, 1946

Coal'

DIVIDENDS:

Farrell-Birmingham
1945

j Cuban Dominican Sugar

Dcs Moines and Ft. Dodge

RRl

•,;; /

:

Company M
j.

ANALYSIS

ON

—

1944

$2.75

/

/1

"

f

Lackawanna RR. of N. J.

v/l';teManati Sugar

Co. f

-

'.//•

•;*;$•'

Minneapolis and St. Louis Ry,
•

W. J.
50

Banigan & Co.

Broadway, N. Y. 4

1943 $4.50

28Vz

—

qAllen & Company
Established
30

ESTABLISHED

v

—

Hon

■

HAnover 2-8380

/

74

;

;

■

/

Trinity Place, New York 6, N. Y.

East Coast Public

N. Y. Railways

\

Studcbaker Corp.

Eastern

Carbon Monoxide

Norfolk aiid Southern Ry,
-

r

5 Yz

s

Securities Co. of N. Y. 4%

*

to

'

1-573
1 >

New Orleans

I--

i }/

1951

■

Minneapolis & St. Louis. Ry. Issues

Eliminator

Angeles and

-

1948

Service 4s

Minnesota *Pr.

Wires

Direct

••

1954

Crescent Public Service 6s

1-1017-18 &

^

V:.''
-

NY

Teletypes:

Teletype: NY 1-375

\

HAnover 2-2600

Telephone:

Los
,f.

y

NEW, YORK 4,-N. Y.

.Specialists in Soft Drink Stocks

Mobile and Ohio RRW

,

1922

STREET

BROAD

1914

Telephone: BOwling Green 9-7400

N. Y. Lackawanna and Western

Preferred

and

Common

New Analysis on request

Kelly Springfield Tire

*

Republic Pictures

$.75

REQUEST

*

#

$2.25

—

Vy

Approximate selling price

Erie RR.

Iowa Central RRt

!'
£

Haytian Corp.

!

P

•

Consols

Wabash Ry.

American Insulator
Western

Pacific RR.

,r

;

Preferred

&

American Cyanamid

Common

Eastern

Heat

&

Punta

Preferred /

Sugar Associates,

Petroleum

Gilbert & Bennett

Alegre Sugar

Common
Quotations Upon Request

Co.

Power

FAKR

Gude, Winmill & Co.
■

„

Members New Yorjc Stock Exchange

1 Wall

St., New York 5, N.Y.

Dl^fay 4-7060

Teletype NY 1-95S




&

FREDERIC H. HATCH & CO.

PETER BARKEN
32

.

".

Broadway, New York 4, N. Y.

Tel. WHitehall 4-6430

Tele. NY 1-2500

■

MEMBERS

63

Wall

'
N.

"

Y.

Incorporated

'

'

:

Bell Teletype

York

NY 1-897

Stock

New York Coffee &

120 WALL

SECURITY DEALERS ASSOCIATION'

Street, New York 5, N.r Y.

New

i

CO.

Members-J

;

•

Sun Life Assurance

Sulphur

Chemical

Fruit

;

I

<

! Royal Bank of Canada

reaction.

erate also varies by large

gen¬

there

that

—

y':vVV'|

Naumberg

&

Jefferson

Corp.

.

service.

Bank of Montreal

Bell

United Piece Dye:::"./

Chicago and North West RR.

the

was

then

them

and

Re¬

a

fundamental

111.,

Chicago,

(Continued on page 3162)

SECURITIES

Brill Corp.

and

Farm

American

Federation,
1945.

18,

v

American Locomotive Co.

could be

fission

of

controlled nuclear chain reaction.

un¬

Oppenheimer

seems

eral, impression

automo¬

existing.

3' Dr.

and

war

Canadian Bk. of Commerce

a

been
designed
and
built, each of them generating ap¬
preciable quantities of energy, jail

ex¬

knowledge and

now

stated that "it

serious

rate

This

"Since

nuclear

used in

new

this,

in

vices-have

uses

of

be

ideas not

garding

the

sustaining fission

the basis of experi¬

on

The experiment

with

control.

J. Robt. Oppenheimer

the

view that

uranium atom

one

the rate of energy release adjusted
within wide limits by a simple

transportation
purposes

>
lE.

Mexico, another

it generated, the fission of a
second atom, and so on indefi¬

the

a

MO.—Albert

trons

n-

atomic

dustrial

New

mass of uranium and graph¬
produced, through the neu¬

of

use

in

Metallurgical Laboratory in
Chicago. In this experiment, con¬
ditions were so'arranged that the

discussed

volved

Dempsey-Tegeler

at the

was

Secretary An¬
the National'Con¬

Rademaker

/

the

atomic bomb

problem / i

•

great experiment was carried out

■

by

the

Jonas

UNEXCHANGED

does

was
previously
Navy; Mr. Reiner was
Louis Ord. District!

LOUIS,

completing

farm-

of

thousands

of

it

as

Moser

have rejoined Dempsey-Tegeler &
Co., 407 North Eighth Street, after

;

*An

v\*.,

OLD/

Mexico,

matter where he farms

no

liarvi 11

BIDS

Alamos,

New

new

y

••ij

Los

airplane transportation

goes

J,

ful for the purposes of society.
This view is based on misconcep¬
tion. More than two years before

great
laboratory a t

or

industry

ern

us, a

head

was

the

we

or

farms, great cities, tremen¬
factories, millions of auto¬
mobiles, fine highways, schools,
hospitals, and homes
It is the
factor that made it possible for

who
of

bile

if

ST.

radio address delivered on Dec. 23, during the United States
Company Philharmonic Symphony broadcast, Dr. J. R. Op¬
penheimer of
the University"
lems in controlling the release of
of
this energy and in making it use¬
California,

less

that

-With

a

slack

in

dous

In

gets tangled in the traces, the
farmer
soon
finds
himself
in
or

v

i:

.

experi¬

Mr.

in the U. S.

Rubber

could

ev¬

mod¬

our

and pro¬
You know

prosperous,

F.

Gummersbach and Walter A. Stay

power

trouble,

;

a

produc¬

and

first-hand, "painful

the

see

,,

maintain

to

ductive-United States.

ence

agri¬

need

strong,;, prosperous

of

.

the

is

how

phase of farming

tive agriculture, if we are to have

from

our

Bureau

Farm

You know from your

Eugene

with the St.

it

advance

to

personal experience in every

own

achievements

culture, labor,

interdependence

more

American

tical
The

familiar with

more

of

done

Federation,

results.

is

doctrine

has

or

creed,; but: it
brings prac¬

is

our

the

and

with Herrick, Waddell

Co., Inc., 1012 Baltimore Ave*

nue.

R.

MO.—Charles -ti

CITY,

Jr.,

are

Atomic Bomb, Holds That Problem of

where

;

interdependence of all economic groups and the

Moser,

&

Oppenheimer, Head of Laboratory That Developed
Making Available Nuclear
Fuel Is Capable of Being Solved, but Doubts Whether Automobiles
and Airplanes Can Be Operated by Nuclear Power Units Until New
Ideas Are Developed.

I

.

Secretary Anderson, After Reviewing Agricultural Progress in War I
Period, Speaks Optimistically of Outlook for 1946. Calls Atten- I
tion to Close Economic Interdependence of Agriculture and Indus- :
try, and Points Out That Immediate Problem Is to Maintain a Bal¬

J.

KANSAS
E.

Reiner

Of Atomic Power

By HON. CLINTON P. ANDERSON*

With Herrick, Waddelh

v

\

Exchange

Sugar Exchange

ST., NEW YORK

TEL. HANOVER 2-9612

Thursday, December 27, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &
3134

Coburn

CONN.—Lewis I.
become
associated
& Middlebrook, 49

Pearl Street.

In the past he was

HARTFORD,
has

Corliss
with

Churchill to Visit United States

Middlebrook

Joins Coburn,

Sojourn

Month's

for

Paine, Webber
Robert C. Buell & Co.

States

Only

a

vative

month

This trip, it

announced that Win¬
wartime Conser¬
Prime Minister of Great

advice

Bayway Terminal

ill's physician,

D£S MOINES

Davis Coal & Coke

who suggested

:

!

Common

WHEELOCK & CUMMINS

,

cli¬

warm

a

for

mate

Emerson Drug

of

Church¬

Mr.

re-

eration.
Churchill,

and if labor troubles

cup

Mr.

INCORPORATED

STEIN BROS. & BOYCE
New York

Members

6 S.

Preferreds

Stock
exchanges

& Baltimore

Exchanges and other leading

United Light

Co.

Rath Packing

Bector 2-3327

■

MOINES

DES

but

Bell Tele. DM 184

Phone 4-7159

DETROIT

Securities Co.

;

COMMON STOCK
'

'

'

;V

'

'

'

'

'

y

V

Electromaster, Inc.

company

^

in United States

Outstanding Record of paying
dividends on common shares
each

1910,

since

year

'

' f

The oldest leverage investment

Sheller

■

Manufacturing Corp.
*

<!■.'.

.

Reports

' '>

'>

''

■

'

,

furnished on

''

>
f

-r

request

;

•

except

1933-1935.

Selling

asset
''

"
•

*

value.
'

"

.*

Mercier, McDowell
& Dolphyn

t

1

i

Descriptive memorandum

du

net

below

about 28%

on

request

Members

Stock Exchange

Detroit

Detroit 26

Buhl Bidg:.,

Tele. DE 507

Cadillac 5752

Pont, Homsey Co.

one

BOSTON

is

.

V,;.Dealer

9, MASS.

Botany Worsted

Markets

Dependable

■;

'

t

-

Central Steel & Wire

^

Invited

year. .;:

Mills pfd. & A

Empire Steel Corp. com.

Mar-Tex Realization
Inquiries

? j

1

.

Philadelphia Co. common ;-;V

Michigan Securities

(Oil and Gas Producer)

Warner

Shoe common

speculative inflationary hedge

W H. Bell & CO

Members

Detroit Stock

Incorporated
Investment

Federal

49

Tel.
v

HUB.

*

and

Co. common

well

0810

Easton

10,

Mass.

Teletype BS

Phone

TRUST

2

a

;

.

Phila. 2

share

estimated at around $6

(based on 1944 earnings),
City Rapid Transit is one

Board

The company operates
St. Paul and Minneapolis, and

(now 14).
in

a

record of efficient manage-

ment.

$2.62 a share was earned
months ended Sept. 30,

has

Capital

Transit

ington, D. C., and

serves
Wash¬
is controlled by

American

North

the

Company

stock is
hard to buy but at the last available quotation around 34, offered
a yield of nearly 6%.
Philadelphia
Transpo rtation*

system.

The

minority

9Vz over-counter, has a
complicated capital struc■ ture.
The stock was issued in reorganization in 1940. The present
dividend rate is 80c, affording an
excellent yield. There should be
some substantial tax savings next
[ year, as a buffer against any decrease in revenues.
Duluth-Superior Transit,

around

(Continued on page 3156) f ;

in the nine

Portland

-Harrisburg

Sy¬

(28) pay..$l and $2

of the few issues on the Big

ST. LOUIS

LOUISVILLE

•

.....

present dividend rates seem
covered by earnings.
Syra-1 around
should; enjoy
tax
savings highly

Twin

189

Allentown

Transit

next year

Tele. PH 73

Phone Rittenhouse 3717

CAnal 6-3667

Washington

OFFICE

Exchange Bldg.

Stock

BLDG.

Teletype GR 184

94336

Byllesby & Company

PHILADELPHIA

Securities

St., Boston

New York Tel.

Philadelphia

MICH.

Exchange

RAPIDS

GRAND

'

V ;

H. M.

white, noble & co.

war

:

respectively,
affording good
yields.
They have been recapitalized on a conservative basis,

,

cuse

A

.

Rochester Transit (11) and
racuse

Vinco Corp.

John Irving

,

earnings, estimated at over $1 for '
1945
(87 cents was earned in 9
months).
Dividends, however,
amounted to only 25 cents this

.■■■»; I
Inquiries Invited
•

Teletype BS 424

Capitol 4330

| ;; Third Avenue ^Transit, selling
on the Exchange around 13, does
not appear particularly attractive;
even allowing for anticipated post-

reasonably priced in relation to mated) mean little because of the
complicated capital structure, in-»eluding several preferred stocks
with substantial arrears.

CRAND RAPIDS

Bank Building

Shawmut

States, Mr.

scheduled to make
address. ; On March 5,'he

Churchill

Railway and Light

'

.

earnings improvement upon
completion of the bus conversion
' program. There are, of course;
will speak on "World Affairs", at
Baltimore Transit, selling over- large arrears on the adjustment
Westminster College, Fulton, Mo.,
counter around 6V2; earns about income bonds and a recapitalizain President Truman's home State.
$1.52 a share.
The company has tion would seem to be essential
been involved in litigation with before the stock could pay -sjny
the City of Baltimore, but this has dividends.
Meanwhile, the Com-'
apparently been cleared up; the pany is suffering from managevoting trust has been terminated ment troubles.
' j )
Southern Advance
and a new President appointed. | ; St. Louis Public Service A ira
Accumulations on the two income . the 12 months ended September/
Bag & Paper Co.
bonds were cleared up in 1942.'earned $1.91 a share and the divi'■//V./:Common Stock
v/*
Arrears' on
the preferred stock dend rate is $1.
National City
amount to about 50%, so that are- Lines has a substantial interest in»
Grinnell Corp.?
capitalization would be in order, the company. I Tax savings next
Common Stock
"
Federal
excess
profits taxes in 1 year should be substantial.
The
1944 .were very large and their stock is around 20 Y2 in the unelimination may facilitate some listed market.
recap plan.
j Eastern Mass. Street Railways
BOENNING & CO.
Los
Angeles
Transit is con-j is an extremely "high leverage"!
1606 Walnut St., Philadelphia 3
trolled by National City Lines, I issue, quoted over-counter around
Pennypacker 8200
PH 30
which owns about 59%
of the 4, with a poor market.
The high
Private Phone to N. Y. C.
common stock.
Selling around 10 share earnings ($3.81 plus nearly
COrtlandt 7-1202
i
•
over-counter,
the
stock
seems $17
potential tax savings, esti-

'

IOWA

9,

in-1,946, when they Will enjoy big
tax savings.
Their several years
of prosperity has "fattened" them,
permitting substantial improvement in financial structure and
cash position." Some of them have
been able to refinance on favorable
terms. / Following is :some
brief comment on leading issues:

»

to; Mr.;. and
and their1 daugh¬
Oliver./!

available

Churchill

While in the United

BUILDING

EQUITABLE

Churohill

;,v

'

ter, Mrs. Sarah

BOSTON

H

house

Mrs.

Common

'

Winston

who has made
his

393

Bell Teletype BA

New York Telephone

Quebec,

of

& Rys.

Kansas City Public Service sells
over-counter around 7. Earnings
are difficult to appraise because of
a large contingency charge. Twenty-five cents a share was paid last
January, and 30 cents will be due
Jan, 2, affording a yield of'over
4%.
'

|

ing servicemen, plus reviving factory employment for peace work,
may keep the trolleys rather busy

Clarke

Frank

Preferreds

CALVERT ST., BALTIMORE 2

a

ida, will be the
guest of Col.

Co.

and material

continue there will be
continued slow-down. ' Return-

shortages

while in Flor¬

Iowa Power & Light

The transit company stocks

;

under

taken
the

have, of course, enjoyed a substan¬
tial wartime rise, reflecting the huge increase in operations due to
decreased auto use and increased factory employment.
It has been
rather generally assumed that after the war the earnings bubble
would be pricked, and the transit stocks would suffer a corresponding
deflation.
But perhaps this view may be subject to modification..
The
automobile. industry is not<£—
———
.
' v
showing the rapid comeback which but there are still $49 arrears on
was anticipated earlier this year,
the preferred stock.
■
•
^

is
is

reported,

Attractive?

Are the Transit Stocks

so

or

Florida.

in

Churchill,

ston

to'spend

Year

It has been

BALTIMORE

the United

will sail for
shortly

after the New

During
College,

Address Scheduled
& Co. and Stay Is at Westminster
:
Fulton, Mo.

with

Britain,

New Year
in Florida.

Early After

Sail

Will

American Barge Line

>

<

American Turf Ass'n

TRADING MARKETS

Girdler

Boston Edison

Louisville

Boston & Maine Prior Pfd.

Gas

Stix & Co.

Pref.

INVESTMENT
509

OLIVE

STREET

PREFERREDS
<
'

i

Submarine Signal

UTILITY

PUBLIC

SECURITIES

Winn & Lovett Grocery

New England Lime Common

.

Corporation

Hialeah Race Course

★

★

★

St.LouisI.Mo.

™I BANKERS BOND
Incorporated

Dayton Haigney & Company
75 Federal Street, Boston 10

1st

Floor, Kentucky Home Life
LOUISVILLE

Members St. Louis Stock

Bldg.

Exchange !

Paine, Webber, Jackson & Curtis

2, KENTUCKY

Long Distance 238-9

Bell Tele. LS 186

ESTABLISHED 1879

Private New York Telephone
REctor 2-5035

UTICA. N.Y.

PHILADELPHIA
We

Suggest

Oregon Portland Cement Co.

Gear

•

•

•'

•

.•

Capacity—900,000 barrels annually.
Book value—around $18.
Good
earnings
all
through
war
period, t
Company would benefit substantially from tax reduction.
Oregon's
huge
highway
program
ready to start.
Market

about

12%

Circular available

Lerner
10

POST

W Cotton

.

United Printers A Publishers

OFFICE

SQUARE

Teletype BS 69




Mills ■ //:;i

/'Makers of Utica & > •
Memos

on

Request

Mohawk Percale Sheets''.

-

•

BUCKLEY BROTHERS
York, Philadelphia and
Angeles Stock Exchanges

1529

Walnut

Street, Philadelphia 2

Los Angeles
Pittsburgh, Pa.
Hagerstown, Md.
N. Y. Telephone—•WHitehall 3-7253

,

.•

•

INQUIRIES INVITED

Private Wire System between

Philadelphia, New York and Los Angeles

'

'J;/

:

England common

'

Gilbert J. Postley &

INVESTING COMPANY
INC.
238 Genesee

Northern New

[

;,v V

MOHAWK VALLEY

Tel. 4-3195-6

Midland Realization common
,.:£:

1

"

Members New
Los

Midland Utilities common

Utica & Mohawk :

-

Pump Co.

New York

& CO.

BOSTON 9, MASS.
Tel. HUB 1990

Grinding Machine Co.
Reda

Common Class "A"

29 BROADWAY, NEW

St.,. Utica 2,,N."

Yyj

Tele. UT

16*

*"

Direct

YORK 6, N

Wire to Chicago

.

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Co.

Y.
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•

THE COMMERCIAL & FINANCIAL

Number 4450

umev162

CHRONICLE

3135

of the Justice
Nbyes Holds Present Real Estate Prices Are About 60%

Charles F.

Level, Whereas Stock Price Averages Show a Much Greater
Sees Ground for Higher Real Estate Prices.

of 1932

,

j

Advance.

/

Company, has issued a statement predicting further rise in real estate.
values

the real

an

«>-

and

' ;•

es-

3946.;
i According to

Co

\

m m o n

*

-

degree of
nomic

par¬

is

increased

the ~

the

last

months

'

;12

investment

list;.: Why.

ing,
a

2% to 4% re¬

fully and expertly selected, from
7% to 10% on a substantial equity?

will wit¬

128%

greater activities in the pur¬

and com¬

AVERAGES

Industrial--

Percentage

Increase--2_____„___L^.--.'

1945

Railroad

the
increase, of
212%, 128%, 34% and 39% above
specified, New York City real es¬
tate is selling not at an increase
but at substantially 60%
of the
;

^

l \"Heal estate values must be and

64.15

212%

128%

.-Utility
28.33

"

'

.-..-

y '

38.05

Z

^:7/34%

.

Bonds
77.45
107.92
39%

creased
held

be
arti¬
regulations

greatly, /Rents
temporarily

down

may

valuation

much

much,

is

wonder

greater than today's prices. The
purchase of well selected real es¬
tate is the outstanding investment

why such low prices < pre¬
vailed in 1945 and 1946. a Labor
and all costs of operating build¬
ings of every description have in-

a

period and the public > is
just commencing to realize it." ,-///
this

of

i

Adjournment of First Session of 78th Congress;
/ p Legislation Enacf ed-Measures

Pending Iff

V > ; The first session of the 79th Congress adj ourned on Dec. 21;dhe
session began on Jan.'4 last, and the second-session will%bevbrought
underway on jan.
Jan 14, in an "election year.'" The closing of the first
^ jsessiori Occurred
id at 2:11 p.m. in the House on Dec. 21, while'the Sen•
ate' wound up its "'deliberations at 3.47.p.m.
..rrntf.
ftictwv
'•?' j •; Noting that the session wrote, history, in w a r an d /peace r/ the:
nn

Associated Press

on

Dec. 21 added,'®"

of

Truman

Navy officers who disagree.'
His
only / insistence,
he

proposal to make permanent the
Fair Employment Practices Com¬
mittee set up in wartime to police
iany discrimination against Ne¬
groes and other; minorities. The

questioners, is that naval officers
opposing the merger make it clear
that they are expressing their per¬

there were many
important matters which President
urged it did. not/write
into laws.: One of these was the

'

that

would bring it up as
the second session opened

its

tion

It

Congress's handling of
employment bills.

In h;s final

fore
as

time, the Chief Ex¬
plaiq his dissatisfac¬

same

with

conference be-?

news

Christmas, Mr. Truman who,

Vice-President moved up to the

said he wants Navy Secretary Forto

remain

least for the

differences

fication.
.

:

his

at

Army-Navy uni¬
-

•

.

-

The President declared, said the

Associated
own

Press, that despite his

commitment to

the Army

a

merger

and-Navy into




a

Press,a

the world

United

of

single

,

by

Nations

been settled.

now

Similar

of

records

accomplish¬

be found in other ad¬

■

powers.

to.Regu¬
late Commerce," creating the Im

the State

black

ples, it is

ess

//■/

and violations

/if/

,

is their

Illustrations

of

ervation "of. a. lawfully prosper¬
nation."

ous

// J/;-/////*'
/
the growth of
,

.

on

administrative law making agen¬

it

considered

a

threat to our de¬

alien system and a
of self-seeking bu¬
reaucrats." V But it is my conten¬
tion that the, administrative proc¬
an.

mocracy,

"contrivance

Fifth

act with

an

familiar—The

all

are

Selective

Training .and

Afct—will

serve

Service

illustrate

to

the

in which the Congress has

wisely refrained from seeking to

yComplexities
The

a

exe¬

judicatory functions in a single
agency.
In this statute Congress

Administrative

''

ised vigorous execution of the an¬
titrust Jaws, which action, he con¬
tended, was essential to promote
rapid reconversion and the pres¬

fre*

more

placed broad rule-making and ad-"

patch.

Tom c. ciark

and

more

instrument for the

we

manner

of.Govern-

/V/.
; ///;
ment economic controls. He prom¬

wonder that Congress

no

an

as

which

flexibility,'their capacity to do a
complex task fairly and with dis¬

^

year.

An examination of

governments as well as
The great advantage

of administrative agencies

markets

of its

cution of its legislative policies.

the Federal.
-

a

has resorted

>

,b'yJ..PgS

part

a

In the light of these few exam¬

meet the
needs of changing
times, has steadily continued, in

illus-

;

quently to the administrative proc¬

The creation of other agencies,

.

the growing
disregard for
as

only

\

sand claims

to

ted

is

ble

mjen.te d on
what he called

a

that

literally millions of records, andl
disposes of 8 or 9 hundred thou¬

agencies, and...

t r

Yet
work.

roads, accompanied by discrimina¬
tory rate adjustments, irresponsi¬

terstate Commerce Commission.

law

analyzes, and
schedules,

The Social Security Board keeps

elemental ad-mjnistrative
.

receives,

thousands of rate

applications and complaints.

conferring

ment in 1887 of "An Act

also, c.o m -

mission

the rapid expansion of rail¬

was

'

Quarterly Report of

(Continued

i

3164)

on page

the Office of Contract Settlement
shows

what tremendous progress
has been made in settling termi¬
nated war contracts through ad¬

!

ministrative action. The surrender
of

Japan caused the termination

of

over

100,000

cancelled
Add

this

SUBURBAN

the

-

have

.

DU MONT LABORATORIES

that

contracts

KAISER-FRAZER CORP.

realization of the

some

gigahtib task

faced

War

the

by

!

* WELLMAN ENGINEERING

|

Bought-—Sold—Quoted

ess has had i to expand to meet

the needs of an increasingly com¬

plex civilization/ Full recognition,
it seems to ;me, has not been given
to the '-fact that the phenomenal
gro wth .of the administrative proc¬
ess 4 in
recent
years
has been

PROPANE GAS

CORP.

)

terminated by V-E Day and

were

you

Com. & Pfd.

prime .contracts,

commitments.

to

*U. S. SUGAR

i;

involving 24,000,000,000 dollars in

s
j

* Circular

•IV,

on request

**Prospectus

(/.

(Srrettn0s

.

./

"

Request
'

on

/'//'

,

forced .by; phenomenal .events—

two-world wars of catastrophic
proportions,: and an intervening
depression, all in +one
generation; y>
■

f inancial/;

.

administrative

/The

in

process

as

J.F.Reilly&Co.
>i"

George R. Cooley & Co.
///si;''
/://

bid

52

the-Government itself and at

as

the very

// //

INC.

Established 1924
William

St.,

New

WHitehall 4-3990

York

..,./
5,

;•

N.

•

40 Exch. PL, New York 5, N. Y.
•

i

f

Y.

Members

.

^ New York Security Dealers Assn.

i

I

'

:HAnover 2-4785

B<jll System Teletype, NV 1-2733-34
Private Wires to Chieago & Los Angeles

Teletype NY J-2419

first session of the First

ACTIVE MARKETS:

.tj

fKaiser-Frazer

-

Corp.

Bk.

Hanover

&

//

Tr.

United Drill & Tool
<"B")

Industries

Kingan Co.;t/

Hartman Tobacco

Vi -Chemical Bank & Trust
*

Common

Great American

Z

Kingan & Co. Com. & Pfd.
Central

Great American Industries

General Tin

/^National Vulcanized Fibre

we

«/-

the

lars have

ment may

financial
manipulation, and
speculation, that led to the enact¬

,

Gov-

of

Common

Missouri State Life

Pfd.

&

Dayton Malleable Iron
Common

Prospectus on request

Z

,

Air Cargo

S. Weinberg & Co.

J.K.Rice,Jr.&Co.
\

Established 1908

-

Members

N.

REctor
Bell

Y.

•

Members N. Y.

'

Common

Security Dealers Ass'n

SIEGEL & CO.

Telephone

60 Wall Street

Security Dealers Assn.

Broadway

System Teletype N. Y.

Bell

1-714

Teletype

NY

DIgby 4-2370

39 Broadway, N.Y. 6

Whitehall 3-7830

New York 5

2-4500——120

Teletype

1-2763

NY 1-1942

country's

participation rin
UNO; it appropriated new money
to the UNRRA; it extended the
lend-lease program and the recip¬
rocal trade agreements act, and it
wrote into law the Bretton Woods

monetary

ments.

In

'

~

We

believe

*

agree¬

WE

Securities

a

in

and

progress

last

shots

back

some

had

two-front

then,
been

war

was

after

fired,

the
took

$52 billion of current

(Continued

Mgr.

3167)

•

Joseph McManus & Co.

Inactive

Exchange
Chicago Stock Exchange

10

Tel.

HUB

1990

Securities

OFFICE

BOSTON

New York 6
Teletype NY 1-1610

POST

9,

SQUARE

MASS.
Teletype BS 69

Preferred

7%

Telephone Bond & Share
Class

A

Associated Tel. & Tel.
7%

Preferred

Associated Tel. & Tel.

Available

LERNER & CO.

Members New York: Curb

39 Broadway

Telephone Bond & Sh^re

•

Spokane Portland Cement
Circulars

Digby 4-3122
on page

SUGGEST

Riverside Cement

MICHAEL HEANEY, Mgr.
WALTER KANE, Asst.

Appropriated approximately $62,billion while

will

several years.

Consolidated Cement
•

On the. domestic front Congress:

companies

Oregon Portland Cement

'

doing those things it followed

Roosevelt and Mr. Truman.

cement

operate at capacity for

Curb and Unlisted

the recommendations of both Mr.-

present, despite their

over

idity, of decisions

/' //'

..//.;

'round

heard

ratified

this

at

post

It

the val¬

on

enacted

were

important administrative

courts/in rul¬
ing,

more than any of
predecessors, made dts

international

Presidency in April following the
death of President Roosevelt, also
xestal

the

Charter; it overwhelmingly enact¬
ed a law to give livings effect to

grant of power.

labor and

these, some 185,000 contracts,
involving over 25,000,000,000 dol¬

told

$

of

the things it. did.

day extended the Committee's au¬

At the

those

Associated

the

recent

voice

thority under the emergency war¬

ecutive made

-

of the

powers

perhaps

gress,

v-//;''
'I In the absence of the legislation

e

From

••

he had asked, Mr. Truman yester¬

time

not

/■;■

//;'./; y y
: Although its tally of "things-un¬
done" is a long one, the 79th Con¬

they

Jan. 14.

statutes

Bill-to fix the

also quote:

Chavez (D.-N.Mex.) served

soon as

views and

Administration.

(R.-Minn.),' and
notice

Ball,

effort will be made to muzzle

no

sonal

Associated Press further said: :

Senators

ran-Summers

defense,

national

however,'-? that

/

Of

files

the Federal Government is

department

production to date.

war

our

Recon-

| ;In an address before the American Bar Association meeting in
Cincinnati, Ohio, on Dec. 19, Attorney General Tom C. Clark, upheld
principles *
of the McCar-y
Congress under the Constitution,

but.

such

be- higher in
1946 than in
1945, and five years hence we will

contracts,

the

cies/ Mr/Clark said:
governmental
:
| Administrative law has ?-been
eventually along commonperhaps the primary/ subject of
sense lines they will sharply ad¬
vance
until owners obtain a fair djscussion .among legal thinkers
.fpr the past 20 years. Some Have
return Ion a fair valuation, ; and

ficial

prime

/

by

will

•«inri(.n»,av

and Put

288,000

involving 62,000,000,000 dollars in
commitments, have been
terminated from the beginning of

cancelled

ministrative agencies.
The Interstate Commerce Com¬

Commenting

against

,values of Dec. 14, 1932.

,

28.16

193.34
•

i
'As

/

I

"/•.

"'//

61.93

14,
14,

v.;

bonds;:

on

The following comparison is defiIt is conclusive.

t

i

December

;

on

apart-' nite.

DOW-JONES

,

railroad stocks, 34%

on

utility stocks and 39%

chase of buildings for occupancy.

December

show a per¬

averages

centage increase of 212%.-in con¬
nection
with
industrial
stocks,

get towards normal. Nineteen hun¬

property and even

the

conversely,

while,

Dow-Jones

rental values increase and

buildings, store

this

than

Furthermore, this return will in¬

mercial

buildings cannot provide
than- 65 % to 70% of area

comparable with existing build¬
ings of the same height.
y
'
//"Prices of real estate today aver¬
age possibly 60% of the values of
1932 and in many cases much less

6%' with perfect safety, and if care¬

dred and forty-six (1946)

Generally speak¬

the law.

new

more

turn when good real estate can be
had that will show from 4J/2 % to

Office

construction
(c) Our new

ited by

Charles F. Noye.

:. ;

ties and bonds with

ness

building

into

zoning laws are more drastic than
the old. Coverage of land is lim¬

the top of the

crease as

direction.

every

is the result of labor,

enters

at

vest in securi-

in

Buildings: are almost entirely the
result of labor and everything that

puts

real restate

(b) Labor costs have

effects,

mate

study,

happenings of

-'

This

ticularly, the
'

We have inflation.
It
cannot be denied.

(a)

only a matter, of opinion as
to how far it will go and its ulti¬
It

knowl¬

of

Machinery of Postwar Business

Some

.

here.'

is

eco¬

edge and

'"Lubricate the

to

ment,.

with any,;/

sense

purchased by one
investment

Navy Departments and by the
of Contract Settlement.

Office

/!version Into High Gear."
protect the business or
Wants Business to Cooperate With Jus¬
family in a permanent home and
tice Department and Asserts That Full
Weight of Government
as a hedge against inflation in the
Authority Will Be Brought to Bear on the Side of a Lawfully Prosmatter of increased rentals as well
as increased returns on the invest-^ viperous
Nation.. .
,.V
*' j
"
and

Noyes,

be

tenants as an

more

or

late market in

Mr.

will

ments

activity

more

and

plexities of: Government Regulating Agencies Have Grown and
Commends the McCarran-Summers Bill Which Would Restrict
Powers, of Judiciary in Passing on Administrative
Rulings.
Notes
Increasing Attitude of Contempt for Law and Promises Vigorous
Action Against Black Markets and Antitrust Violations so as to

I

of the real estate firm, of Charles F. Noyes

Charles F. Noyes; head

Department

Attorney General Clark Tells Bar Association Administrative Com¬

6%

Preferred

JAMES M. TOOLAN & GO.
67

Wall Street,

Telephone

New York

HAnover

2-9335

Teletype NY 1-2630

THE COMMERCIAL

3136

Thursday, December 27, 1945

& FINANCIAL CHRONICLE

Truman's Fact Finding

Proposal No Remedy
(Special

GA. — Marcus L.
Haas has become associated with
Stockton Broome & Co.
He was
ATLANTA,

and
with Beer & Co.

formerly in the U. S. Army

prior thereto was
(Special

to

Chronicle)

Financial

The

OHIO — Alfred C.
Jones has joined the staff of W. E.
Hutton
&
Co.,
42 North Main
Street. .
Mr. Jones has recently
been with the O. P. A. Prior there¬
to he was with Greene and Brock,
and McDonald-Coolidge & Co.
DAYTON,

with

ciated

to

Chronicle)

Financial

The

(Special

to The Financial

(Special

Building.

with

the

Ohio

He was formerly
Company for a

The

Satisfactory and That the Employees

with

Securities Com¬

&

President's

He was
previously with the Pike Grain &

Street, after serving in
the U., S. Navy.

Building.

B. & L.

pany,

Co.

'

Proposals, if Adopted, Will Spread Unemployment and
More Inflation.
Says Real Remedy Is Repeal of

Lead to

Will

,

President Truman sent to Congress a special message

On Dec. 3,
(Special

to

MICH.

DETROIT,
has

Ratz

Charles

of

Parcells

A.

Co.,

.

.

to

is

Brainard,

Pearl

Street.

Lerchen

Co.,

&

Prior to serving

firm

Ford

&

Judd

.

Co„> 75
with

7/

■/.

to

The

CONN—Herbert

with

become

has

Armstrong

nected

to

The

Robert S.
associated
with
Sidlo, Simons,
Roberts &
Company,
First
National
Bank
Building, after serving in the U.
COLO.

DENVER,

Layton

has

S. Army

to

The

• /

' MICH.

Campbell,
Buhl

Jr.,

after

Building,

(Special

Huntley

Inc.,

in

serving

(Special

to

The

N.

MICH.

■

page

on

—

.

•

tl/S. Realty & Improvement-!.--' ■ - 108
'7T:Westinghouse Building
—-'7' •• 55
7; ^
Equitable Office Building
137
\
\

7-

>

] Savoy Plaza 3-6'sr '56

.

/Park Central Hotel—

" X 94

——_

; 80 Broad Street

—'

Broadway Motors Building../

,

SHASKAN & CO.
Now York Stock

I

"

40 EXCHANGE FI..N.Y.

^

Dlgby 4-4950

Boll Teletype NY 1-952

:

London Terrace
Chanin

}

Exchange

A1.mS.ri Now York Curb Exchange

: ;

It is

our

■'/65
(84
:7 > ;
44 /.

81

.

89
:

/_

opinion that

34

43

-

—

Building 4s_—

Dorset

'/

50 X

88

/

V

-

52

:

-

/,

•

'

\

/

*

well

better

or

than

as¬

it—namely,

underlying

that

the Railway Labor Act has
produced results which are satis¬
factory. What are the facts?
'
How
4

'

;

The procedure during the pre-*

period, under the terms of the
is correctly typified by the
following portrayal of the course
of events, in a controversy:
The
Railway Labor unions demand a

war

act,

15%

increase in wage

railroads

point

rates. The
that most of

out

losing .money;, that a
part of their i bonds are in
that their stock has be¬

.are

large

'

if

that

Interstate

the

Commission

and

Commerce

grants, and the rail¬

put

into
effect,
higher
freight rates, the result will be to

)

divert

more

44

pipe

to

business

of

trucks,

ships,
electric

lines,

lines.

and
power
The unions remain adamant

their

in

the

of

transportation

any

worthless;

practically

come

demands.

Federal

^

con¬

ciliators set to work.
They can¬
not get an agreement./The unions
vote to strike.

7v,':-:"777

CERTIFICATES
BOUGHT

-

SOLD

-

appoints

SPECIALISTS

TITLE COMPANY

which

'77r/7::^''?;7-

in

rates

#rt

,

,

:

Since

7,

Emergency Mediation

shows
are

that

/already

like skill in other industries.

.

sad financial

CO!

Seligman, Lubetkin & Co.

39

Broadway

New York 6, N. Y.
HAnover 2-8970

Incorporated

'

...

Members

41

Broad

New

■

_•*

Board

all

evidence,

the

Teletype NY 1-1203

Broadway Barclay 2/56 *

Broadway Bldg. 41/g/58

Wall & Beaver

4Vi/51

Westinghouse Bldg. 4/48

Beacon

Hotel

4s

1958

W.

S.

■

,

to any

Broadway Motors 4s 1948

Roosevelt Hotel 5s 1956

Gov. Clinton 2s 1952 W.

Roosevelt Hotel Common

Hotel

Lexington

S.

40 Wall St. 5s 1966 W.

Units

Hotel Lexington Common

165 Broadway

Hotel St. George 4s 1950

870 7th Ave.

Montgomery St., San Francisco 4

demand

another

increase, and the whole pro¬

15%

is repeated, the

cedure

Mediation

again splitting the differ¬
granting another
The only variation is that

Board

and

ence

raise.

if, perchance, the "cost of living"
is rising slightly, the Board makes
the increase 10%,
/
,

;

A Temporary Reprieve

f

the

When

and

stockholders

bondholders have the temerity

Teletype SF 61 & 62




Tel.

Broadway
BArclay 7-2360

HELP WANTED

■

•

they prove, by official Federal
figures, that the actual investment
in
the
railroads
has
been
far

the book value of
capital/they are told

than

greater

the railroad

in irrelevant—that
capitalization is out
of line with earnings, and that the
only solution is "to put the rail¬
roads through the wringer." When
this procedure is completed, the
common and preferred stockhold¬
that

this

ers

fact

present

left with the choice- of us¬

are

ing their certificates as wallpaper
or
hoarding them as souvenirs.
The junior bondholders become
holders of
stock, the value of .
which will be squeezed out by fu¬
-

increases, and only the
bondholders retain any con¬
siderable share of the value of

ture wage

senior

their original investments.1
If the
wage-increase mechanism keeps
on
operating, all that they are
really getting is a temporary re¬
prieve from confiscation of their

7 / 77'

holdings.-

/•-/':
To
of

;

-'

Look at the Record

'/

clear comprehension
cumulative effects of the

gain

the

a

workings of the Railway Labor
Act during the pre-war period, it
is necessary to note some of the

pertinent statistical facts. One can
get a reasonably fair picture by
comparing averages for the .peri¬
ods of 1921-1925 with those for
1936-1940. The first period pre¬
cedes the boom of the late 1920's.
-

period comes after recov¬
from the depths of the late de¬

The last
ery

pression.

affect
are

but

precedes

the

■

time

the European war began
our

some

traffic

significant figures taken

(Continued on page 3167)

;

OTHER CLASSIFIED ADS

SEE
Teletype NY 1-588

y

.

POSITIONS WANTED

& Co.
New York 7, N. Y.

to

Here

greatly.

,

S7

to

complain that their property is
being confiscated by this proce¬
dure, they are told that the rail¬
roads are over-capitalized. When

j

4i/2s 1958

4*4s 1957 W.

Incorporated
150

S.

.

this has oc¬
marked extent, the

unions

railway

FOR

Majestic 4s 1956 W. S.

N. Y.

Amott,
Bell

curred

.

however,

Before,

City.

Mayflower Hotel Corp. Stock

Broadway Barclay 2g 1956

J. S. Strauss & Co.
155

-

granted. These

TRADING MARKETS IN

Trading Markets

165

decides to spl.it

Dr. King
through the Committee for Con¬
stitutional Government, Inc., New
York

Firm

completely ignores

,]AA statement issued by

HAnover 2-2100

Street, New York 4

disputed. The Me¬

diation

traffic.

way

months

consideration,

and

further declines in rail¬

in

when

...

Security Dealers Association

York

The

plight of the railway

investors is not

Members New York Security Dealers Assn.

wage

higher
workers of

much

"V;

1929

Complete Statistical Information

LJ. GOLDWATER &

the evidence

railway

than those received by

Real Estate Securities

QUOTED

an

The President then

It listens to

Board.

result

After

increases.

incx-eases are

some

the

It Worked Out

roads

class real estate securities l)ave acted

as a

as
a
of the most

/

other type of security during the years
and that 1946 holds prospects for continued gains.
/ /
/
as

one

default;

64

68

v

■

ac¬

widely

,

sumption

them

/-u': 75>////f'/'. 55 .'//"'VX

Broadway Barclay..
'

-XX

•

r 68

78

—72

Broadway

-j-. X .Hotel Drake. I—

;.

■

:: 96

2 Park Avenue
165

-

:

90

——'

40 Wall Street

'J*

63

;

-

'XX /X
.•

45 7 7///'

7.7X7/

81

'

Governor Clinton

'* 66

™ /-r; ;•;-••• 65

•

". 73

—..—

Madison 52nd-J.___-

j • i.

•

—72

Broadway 41st

2

Beacon Hotel, 4's

,

Hotel Lexington____
—108 '
Alden' Hotel-______^-V---.---~-^-76 ''?'&■57 v;/

///

:i|
i;i

870.7th Ave. 4K/S
-

108

f

Broadway; 4^'s r

(Park Central Hotel)

1-1-45 "XX-'
67
,V
• ^ 75
j,
//•32
>/?•■ i1
":.•'//* 50
1 91 • "
7" *

X\

•J/

165

(

Trinity Buildings

i

is

citizen will do well to note the

them; however, the ones listed snow the market value increase
during the year;
; '
' 'V-.'"'.. ■ 7":-; .V/';'
;
•
/•/■///' /■'//
Present
Market
-

|

have

a

.//■:. hai 1 ed

;

.

all of

77-C-TC/7' 7/ Market

railroad

confronting the
nation.;
The general verdict is
that the system will almost cer¬
tainly work well in other indus¬
tries since it has proved so satis¬
factory in the railway field.
f Before
uncritically
accepting
this
conclusion,
the
thoughtful

During the year 1945 many real estate securities were mentioned
At the present time the market is considerably higher
was summarized.
Lack of space, prevents listing

.

that

problems

knotty

than when the issue

Hotel St. Georger 4's

tion

Willford I. King

/';•

.

of

President's

3161)

in this column.

'j Primary Markets in:

Railway
Act. v'7

rarity.
Therefore, the

logical solution of

}7:-i7rrV7/'\

pro¬

under

strikes in

been

Real Estate Securities

SECURITIES

hearings

field

Building,

DETROIT, MICH.—Frederic A.

REAL ESTATE

of

the

Fakas, who has recently been in

7

paral¬

the

to the
Commission

Commerce

largely

act,

Securities Com¬

Bank

The railroads now apply

Interstate
rate

ment

Verl
R.
affiliated

along the line.

for

the

in the U. S. Army,

(Continued

C.—Melvin

—

become

has

after serving

Chronicle)

Financial

Chronicle)

Financial

National

pany,

GREENSBORO,

The

difference, and hence awards
the workers a TVz% increase all

plan

Labor

Investment

with

the armed forces.

;

to

JACKSON,

rejoined
Co.,

&

disputes.

the

This

Since enact¬

Herbert

—

has

McCarty

la¬

Chronicle)

Financial

The

Schollenberger,

Chronicle) \

Financial

to

DETROIT,

—

become

for four years.

(Special

(Special

Chronicle)

Financial

tion-wide

cedure

805 Main Street.
(Special

na¬

lels

con¬

Co., Inc.,

&

Denton

in

crucial

bor

Chronicle)

Financial

set¬

tlements

was

V

HARTFORD,
E.

Co.

&

Judd

Mr.

Fact-Finding

boards to rec- »—:
ommend

prior to serving in the

(Special

in the U. S. Army

Crouse

with

was

F.

D.

Watling,
Building.

with

now

asking it to enact legislation authorizing him to set up

CONN.—John

Army.

MICH..—Robert

DETROIT,
Savage

Chronicle)

Financial

The

Chronicle)

Financial

with

the
(Special

The

Guzauckas and Philip C. Judd are

Staff

&

Building.

to

HARTFORD,

Lloyd' H.

—

added to the

been

(Special

Chronicle)

Financial

The

,,

Wagner Act and Applying Anti-Monopoly Laws to Labor.

-

Securities

Proposal Is Based, Has Not Produced Results That Are
Did Not Benefit. Claims

dent's

G.

MO—Headley

Bankers Bond

King Contends That the Railway Labor Act, on Which Presi¬

Dr.

Chronicle)

Financial

Ealum has become connected

Griswold

he

number of years.

to

HANNIBAL,

DETROIT, MICH. — Ernest B.
Kelly, Jr. has rejoined the staff
of Halsey, Stuart & Co., Inc., 601

man

Bank

Chronicle)

KING*

Economics at New York University

Lecturer ill

Co., Southeastern Building.

.

DAYTON, OHIO—Adrian Karhas become associated with
Grant Brownell
& Co., Winters

By WILLFORD I.

&

Building.

Buhl

Penobscot
(Special

with Thomas Darst

Clanton is

has become asso¬
Alison & Company,

the U. S. Army,

Chronicle)

to The Financial

INSIDE BACK COVER

'

!

Volume

162

Number 4450

-

THE COMMERCIAL & FINANCIAL CHRONICLE

3137

Mosher Attacks President's
f

Past and to Come
By JOSEPH B. ENNIS*

•

Veteran Transportation Expert Reviews Progress in

NAM Executive Says It Will Prevent Full
Employment, Will Benefit
Only Small Groups of Workers and Will Be Fatal to Small Business.
In New England
Addresses, He Accuses Department of Com/herce

Railroads and Locomotives, and Points Out the

of

-•

1

.

™

Senior Vice-President, American Locomotive Company

•

Improvement of
Expanding Use of

ity and That to Effectively Operate Thiere Must Be Mere Technologi¬
cal

Xabor

Policy

World

Period.

Supply

Prospects

Fifty years ago when I was drawn irresistibly into the locomotive
industry I faced a great opportunity,
j■ A
■
Today, as I look toward the future, I am bound to say that 1
lo¬

in¬

thousands

opportuni ty
than they did
half a century

bearing

back.

dustry.,

I

am

delighted
be

a

to

young

The
looks

on

i

That

of

tens

point

future

of

exciting

the

every

of
in

view

the

It is

that

fact

an

we

Fund,
York

to

seems
we

me,

v

v

an

or

any

of

in

us

has not

seen

Stuart

—

Small Business

for

paper.

Company of
HA"
A AA'

New

of ' the

York-

Legislation

(Printed in German)
and Economic Dept.

Bank

for

International

Settlements, Basle, Switzerland—
40

Swiss

francs.

From

r

Bretton

to

Woods

Full

3158) y / Employment—Dag Hammarskjold

on page

i

would

est

Mr.

paid out of

and
a c

—Supplefnent A to Sveriska Handelsbanken's Index—paper.

workers

in

companies
a
loss.

operating
business

a

not

at

will

not

sup¬

policy. Certainly labor
want

it.

And

of

Ad¬

no

labor

through the problem.
In every year between 1913 and
1940, excepLduring the First World
War (1916-1919), at least 40% of

Mosher stated,
"that wages

f

Government

reduction of pay

sincerely at heart
would
seriously suggest such a
policy if it took the time to think

Truman's

that

that
a

ministration'which has the inter¬

statement yes¬

are

national " policy,

a

are

American

awards.

earnings,

all

port such

n

"President

terday,"

as
mean

support

which

business. corporations showed

our

t-

nojptj% income, and in 1932 almost

finding boards

Exchange

—Monetary

of the American Locomo¬

{. (Continued

for

company

Should

Foreign

Company,
Waldorf-Astoria
New York City, -Dec. 11,
1945. A>;H'7.
;

f

wage

Vet¬

Hotel,

be-

re¬

t h e

o

42nd

Under the GI Bill of Rights
B. Padde, Manufacturers

rrust

tive

of transportation such as you

I'

would
must

-

erans

nation in the world-—phys-

versary

Joseph B. Ennis

be on the threshold of

may

era
or

it

boards

garding

—John

*An address by Mr. Ennis at the
dinner celebrating the 50th anni¬

where I stand

because,

West

to

near

adopted

finding

-

earnings

Twentieth

Century
St., New
City—cloth—$1.00. ■■ A "A
330

in Germany

from

libraries

Opportunities, Qualifcations and

and1 challenge
in g

public

<S>-

rectives to the
fact

Trade—Problems of

The

—-

Risks

has been
expression
acceptance

are

Tomorow's

Chase

vast

with

the.,
Prfesident's di¬

Co., Inc., 730

institutions, 250).

-

the future of our in¬
,rA-

crystallized,
"One World."

today.

man

men

miles

of

!

nounced

Manufac¬

(to

„

Ira Mosher, President of the
National Association of Manu¬
facturers, issued a statement on Dec; 21 in which he
strongly de¬

and

American

Worsted

Our Foreign Commerce

all these
things have created in our minds
a point of view which did not ex¬
ist 1 before and which has- great

greater

a

v

Leading

and

and

consideration

mountains of equipment,

of Amer¬

men

ica

of

millions

take

to

young

Wool

and nonprofit

logistical problems solved in order

the

Metz—

—paper—500

Total war,

dustry- offer

for

of

turers—E. W. Axe &

the far-reaching
bomber, the vast and unbelievable

dustry and the
railroad
in¬

W.

Fifth Avenue, New York 19, N. Y.

<$——^
fore.

Federal

■

~

Woolen

the

the

Brookings Institution, Wash¬
ington, D. C.—cloth, $2.50.

Despite Competition of Other Types of Transportation, American
Have Been Revitalized and That in Next Decade They

thirik

"Conjectural Jingosim" to Support CIO Wage
CriticizesGovernment Forecasters for Ignoring
pyramiding Effects of Wage Increases. Holds Labor-Management
Conference Was "No Flop" and Calls for
Legislation to Place Labor
and Management on
Equal Basis in Collective Bargaining.

The

Railroads

comotive

of

Government—Harold

Improvements in Locomotive Power. Describes New Locomotive
as Diesels and Steam Turbines, and Concludes That

Types, Such

Will Do More Business Than in Any Previous Peacetime

Producing

Demands

Says There lis No Excess Railroad Capac¬

Transportation Services.

showed

have.

;he legal right

'
.

Ira

!

Mosher

t

*

no

net

income.

In

-words,
more

...

except in wartime,
than three out of five

to examine

the books of emplo
ess" corporations have any net
is a perfect example of thi
ings, and in all but the most
type
of - thoughtless and short* prosperous years never more than
sighted political policy which is "two out of every five have net
largely responsible for much of earnings.the present labor difficulty in this
Finally, ability to pay as meas¬
country and which is bound to ured by earnings would mean the
stop
progress
and prevent full freezing of our industrial system
employment in the coming years into the hands of businesses with
if approved and applied."
established earning capacities be¬
"What the Chief Executive is cause they would be the
only ones
ers,

.

1

war

on Post¬
Reconstruction, New York
University, New York 3,. N, Y.—

saying in effect," Mr. Mosher con-? able to pay the wages establishedtinued, J'is that wages 'must be undef this formula.
It means
based-upon 'ability to pay' and simply that new businesses cannot
that i 'ability to pay ' is measured
start, the little fellows get squeezed
by the earnings of a company. out, and we move to the "corpo¬

Business Booms and Depressions
—Since -1775—Comparative chart

must

Postwar

Goals

;

Economic

and

Reconstruction—Institute

Financial Agreement
Eugene P. Thomas, President of National Foreign Trade Council/. A:
Issues- Statement* of

Its

Executive

Holds, Terms

Committee.

of

Agreement Conform to Recommendations Previously Made by the

y

Council and States That Anglo-American Cooperation Along Lines:
Laid Down Is Essential to a Healthy World Economy,
The Executive Committee of the

cil, in
dent,
24

of

-

includes

American fi-

of

:

nancial agree-:-as

forming

cod-

of the Council-

regard

jGreat Britain

to take

which

ments

Britain
coupled with

transfers,

or

on

Trust

American

imports into the United
and

other

on

after

strictions

on

all

than

exchange

one

year

exceptional v. investment
profit; possibilities

trade barriers.

(b) -Sterling
strictions will

parts.,

Eugene P. Thomas

?the broad
agreement announced Dec. 6, Con¬
taining the joint statement, re¬
garding the settlement of LendLedse, reciprocal aid, surplus war
property and claims as well as the
joiht statement regarding the un¬
dertaking reached o l commercial
of

policy as embodied in "Proposals
for-Expansion of World Trade and
Employment" issued by our De¬

& Co:, Inc.,
Salle Street, Chicago 3, 111.

re¬

eliminated

on

current transactions "with the

re¬

sult that- any! discrimination aris¬

ing

from. the

effective date of the agreement.
The Committee notes with satis¬
that

the

agreement

on page

-\„:t

3157)

—:— A.;

,

—Special
shall

&

y.

study

by

SAN

FRANCISCO
One

Committee of the
National Foreign Trade Council,
on recommendation of the Inter¬
national Finance Committee, en¬
dorses
the
financial agreement
The Executive

hundred

647 A South

Estabrook & Co.

ilOSTON,

.MASS,

* will

Buttrick

A be

partnership in

States,

fon how

long

President's

and

at

proposal

15! State

:

admitted

Street, members

&
of

changes,

on

Jan. 3.

which forms

and

IN

NEW

YORK

forty-eight stocks traded
also traded

the

on
a.

m.

on

San

and

the

.

The

ess,

t

improvement
would
be
passed
along to a small group of workers
in the form of higher wages in¬
the

ciency would not be passed on to
public in the form of lower
prices as they; have been in the
past;,.;" "-v
\ tr •
7 It would hurt labor, because un¬

prices.
Had that
policy been in effect over the past

der this, formula wage rates must
be reduced when
earnings de¬

of

to4 the

public

in

of .lower

form

generation

-

our -

mass

markets

could not have

developed and

would

in

still

be

our grandfathers.; Further, ability to pay as

■

of increased

cline; and

* -v
It would undermine

of

•

•

our

system

and economic free¬
because
competition would

be I eliminated

be

i

(

(Continued

and

there

on page

would

3160)

•

to

Co.,
the
Ex¬

Francisco

over

our

INVESTMENT

»

Direct Private

Members New York Siock Exchange

Wi

part

6, 1945.

endorsement,

In making

the Committee

while

the financial




NEW
NEW

za

PINE

NEW

STREET

e.

Cd.

YORK

5

UNDERWRITERS AND

DISTRIBUTORS OF

INVESTMENT SECURITIES
BROKERS OF BONDS, STOCKS, COMMODITIES

YORK STOCK EXCHANGE
YORK CURB

and

Other Leading Exchanges

•

:

Kaiser s.

BANKERS

Stock

(E. S.T.)

A list of these stocks is available upon
request

Quotations and executions promptly handled

vrnffo &

STOCKS

EXCHANGE

SAN FRANCISCO STOCK EXCHANGE

tsaa

SAN

russ

suii_ding

FRANCISCO

4

Private Wires

•

effi¬

political

dom

-

meas¬

ured by earnings, if that is to

benefits

the

we

the. handicraft

sta*?e of

New York

5:30 p. m.

that

should

ability

Stedman

Estabrook

what

be determined by
to pay as measured by
earnings would be contrary to the
public interest because:.
wages

Admit

to
—

MEMBERS

that

thereby reducing the cost of
oroduction, the full benefit of the

Government

Spring

New York and Boston Stock

Exchange between the hours of 10

of the completed negotiations an¬

believes

and

The

ever - there
is
technological im¬
provement in the productive procT

the

wage.„A;; :'A 7

"

Ability to pay as measured by
earnings would mean that when¬

with

A J -A

Street, Los Angeles 14, Calif,

TRADING

Stock Exchange are

negotiated by the Governments of
the "United
Kingdom
and
the

this

follows:

ment

state"

appropriate

Text of Statement

Dec.

.

The rest of Mr. Mosher's state¬

rate

determining prices, profits, invest¬
ment, and who shall work where

State, are receiving

Council committees.

nounced

economic

report—Maxwell, Mar¬
Co.,

gen-

arally conforms, to the statement

(Continued,

j'■.

v

fundamental

a

Consolidated Rock. Products COi

so-called

sterling
area dollar pool will be entirely
removed", as soon as possible but
not later than one year from the

faction

;

.

v

exchange

area

be

A

;

'and/or

Bennett,
105 S. La

—

Spanier

not later

after the effective

date of the agreement.

Commentator—Di¬

with, reviews and analyses of. spe¬
cific situations appearing to offer

current, transac¬

tions will be eliminated

Street

gest of current events in the fi¬
nancial markets of North
America,

current

the' agreement

is

fallacy because the ability to pay
be measured by productiv¬
ity, not by earnings."
*
'

stead
Wall

permitted

Kingdom

controls and

United

Stocks—

-

Valley
Building. St. Louis 2, Mo.

.becomes effective,-and similar, re¬

modification

j

Bank

baiky!A Mississippi;

are.

exchange A controls
applied to restrict pay¬

transactions

Gr^at

further

the fol¬

(a) British

will riot be
•

to

partment of

and

Reaay reference table giving com¬
parative: figures—White. & Com-

the part

/

-

*

nancial aid to"

Other

on

Insurance:

of paramount
interest to American trade:

extension of fi¬

of

commitment

a

controls

ornmendations

.

fornia Street, San Francisco 4,
Calif.' AAA A'H. \A:A,h'A..'.'.h A'"A"; : 7A;''-'

lowing steps Jn xegard to exchange
,

gen¬

erally to rec-

in

jNational Foreign Trade Coun¬

agreement provides for proper fi¬
nancial aid to Great Britain it also

Anglo-

j price trends,; national income,

federal debt, business activity, etc,
—Hannaford & Talbot, 519 Cali¬

statement made public by Eugene P. Thomas, Council Presi¬
on Dec.'

approval

ment-

of

-

a

expressed

the

This

:

Home Office Atlanta

•

Phone LD-159

<

•

Thursday,'December 27, 1945

CHRONICLE

COMMERCIAL & FINANCIAL,

THE

133

Co., 208 South La Salle

Fairman &

Street; Chicago 4,A 111!

Dealer-Broker Investment

Trading Market

New

Lime

England

and

Bank

"

Wall Street,

—Geyer & Co., 67
New York 5, N. Y.

1922

Established

situations

gest—data on interesting

Schmidt & Co.

C. L.

Tele. CG 271

6960

chart

to June 1945, which re¬
cords monthly high and low aver¬

A.

^ Member, National Association
of Securities Dealers

Expanding Markets
tronics—discussion in

Wholesale Distributors
West—Pacific Coast

Business SurBroad¬
New York 6, N. Y.

nightly Market and,
way,

UNDERWRITERS
SECONDARY MARKET
;
DISTRIBUTION

LOS ANGELES 14
135 ta Salle St
650 S. Spring St
State 6502
CG 99>
/ Michigan 41S1

Investment Letter.

" >

;

•

i '

..

i:

•

.

t

;1

v ■

t

t

v1

♦.

Corp.

The Chicago
Circular

Request

on

Stock Exchanges
Board of Trade

Members Principal

Chicago

SO. LA SALLE

231

York Office i

1

*

Franklin

An¬

earnings

range

per

& Co., 148
Street, Boston 9, Mass.

Central

share

York 6,

State
V.H''

r

Larson &
Rapids National
Grand Rapids 2,

-

Established

Inc.

St., Chicago 3
Teletype CG 405

Indianapolis, Ind.
Rockford,
Cleveland, Ohio,

111.

analysis

Goodbody

& Co.,

New York

City.

115 Broadway,
special study
C :
:

yKendall

Straus & Blosser, 135 S. La Salle
Street, Chicago 3, 111.
/
.

a

of

study

,

Study : of
sound specu¬

stock as a

—

lative
purchase — First
Colony
Corporation, 70 Pine Street, New
York 5, N, Y
Also... available are studies of
Pittsburgh Railways, York Corru¬

Central Coal

^ Coke

Corporation

,

Four

Wheel Drive

r'

Auto Company

{

Howard Aircraft,

A—Bulletin

recent

on

de¬

velopments—Lerner
&
Co.,
10
Post
Office
Square,
Boston 9y
Mass. 'r
.y>';1 7

*

.

Cement V Corp.

Consolidated

Class

Also

Oregon
side

available

Cement,

gating, American Insulator.

Leland

Port¬

,

COMSTOCK & CO.

P.

4

.

,

Salle St.

.

Consolidated Gas Utilities and

Corp.—Circulars—
Hicks & Price, 231 South La Salle
Chicago

Tower,

R., Mallory

&

Teletype CG 257

analysis—Faroll & Co., 208

4;

appreciation for
this company—Ward & Co., 120

the

at

Walsh

"American Politics

on

End of

Era."

an

All lectures will be held at

8:30

Admission is $1.50. v

p.m.

'

PHILADELPHIA,

Build¬

will

Beers

E.

\

.

T

Own Investment Firm

Co.—cir¬

PA.
his

form

—

Altera

own

in¬

He was

shortly.

firm

vestment

formerly associated with Euler
Co. and was a partner

N. Y.

Beers & Co. of

To Admit Partner

Allentown.

Murphy-

ATLANTA, GA.—King
is

Prior to serv¬

Healey Building.

the

in

offices

from

/

investment

the

in

engaging

-

business

ing in the U. > S. Army,, he was a
partner in the firm.
*

Yfe have a continuing

>

:

analysis of
*
^
"

>

interest in—

;

CO.
CO.

MARYLAND CASUALTY

MARYLAND DRYDOCK

;y:;.;;;-;'vi'tf'-v

j.

•.

V

,1.

■:

V' STRUTHERS

ffltmltri hjtu \jarb Stack £icL>*yi

' '•

'} '

6.34 5outh Spri.Tj

cut

WELLS CORP.

209 South.La'Salis Street

„
Strom-

' '

J CLcafO Slxl*

•

Midland

Utilities and Midland
—

d e t

a

i 1

e

study—

d

write for circular M-3—Fred;

IIIICT

B'dq.

LINCOLN •. NEB.
'

•

TEL. TH1NITY 6345

i

Fir»t. National Banc

Chicago 4, Illinois

lO» ANGEtEfr 14. CAL.

Realization

-

K BOWSER, INC.

•

•

fil » AT t-

TSL.-DBAS0ORM OUO

Wilts.

I A S T"

TO

A H O

W ■

TEL. 2J349

S T--1

CO A t T J

Wi

I SINCE 1908

J Fred. W. Fairmah Co

Offered by Prospectus

We

—

*■

Maintain,Active
—
Markets
nI

Members

1

j

Chicago Stock Exchange
Chicago Board of Trade

"

SIOUX CITY GAS & ELECTRIC COMPANY
1

Midland Utilities

•

A

i..'

Telephone

Randolph 4068,

Direct Private Wire to New ForkBell

■}

'"

First Mortgage 2%s 1975 at 100%
To yield 2.72% ' v; * r'"

"
;

System CG 537




Com.

CORP. Com.

DEEP ROCK OIL

•

K&l

POWER CO. 6 & 7 Pfds.

NORTHERN STATES
;

H. M.

Utilities

SILLS, MIISTON & COMPANY

SALLE ST.
CHICAGO 4, ILLINOIS

208 SOUTH LA
i

•

CHICAGO SO. SHORE & SO. BEND RR.

.

:

'•

:J

;'

■

:

'•

■

■

,

Write For M-3—

study of Midland

-

^

:

Stock at 28%

To yield 4.50%

^

v

Midland Realization

Common

y
-x

.

i

INCORPORATED

Incorporated

\V

Members. Chicago -Stock Exchange

.

200 SO. LA SALLE ST., CHICAGO 4, ILL,
Teiephoa* Dearborn

1421

|

Byllesby and Company
135

Teletype CG 864

So. La Salle Street,

Telephone State 8711
New York

*

Chicago 3

-

r

Teletype CG 273

/

Philadelphia

8c

in Allen E..

King Murphy in Atlanta

• WASH.—Louis
H.
will , be admitted as a
in L. f. Hachez & Co.,

SPOKANE,

•,

Co.—

for

speak

Allen Beers to Form

Broad Street, New York 4,

Co.,>Inc.—

South La Salle Street, Chicago

Study of outlook and speculative

possibilities

f,

cular—Simons, Linburn & Co., 25

y.

Merchants Distilling Corp.—re¬

Also available is an

Iron

Malleable

De¬

States";

14th, J. Raymond

Jan.

on

m a n

ing, Cleveland 14, Ohio.

13,

Cleveland
''Yc<

Illinois.

Street, Chicago 4. I1L.
Dayton,

11

Cot, Inc., Union Commerce

analysis—Steiner, Rouse & Co., 25
Broad Street, New York 4, N. Y,

cent

10th

velopments in the United

Laboratories.

Paulsen Building.

Truck

Jan.

Social

on

and

Wellman Engineering and

on

Haphez
partner

speak

Standard Stoker
d a—Otis & Co.,

Standard Silica Corp.

Dearborn 1501

S.

U.

will

"Economic

on.

•

v

CHICAGO 4
231 So. La

and

Ohio.

V

The

being

e m o r a n

Terminal

Corporation

-

Electric,

Lilies, Inc.,
Coj—m

on

River¬

Spokane

Cement, and

land Cement.

circulars

are

Portland

his topic
"Labor
After; the
War:
Labor and Technology"; Leo M>

scheduled, for Jan., 7th,

Reilly & Co., 40 Exchange Place,
5, N. Y.
Also available is a memoran-

f

y

by Hans Kohn on Jan. 3rd; Aaron
Levenstein is the second speaker

New York

Engineering Co.—
memorandum—Wm. j. Mericka &

United Stockyards Corporation.

•*

Sugar—Circular^—J.

of Peace

.

will

Du Mont

Company

School Lectures

Social Re¬
search, 66 West 12th Street, NewYork. City, announces a series of
four- January lectures :> on
"The
Sh^ipe of Peace."
First of the se¬
ries will be "The Shape of Peace,""

Y.

detailed circulars on Fash¬
ion Park, Shatterproof Glass; Wellmain Engineering Co.; Walt Dis¬

Roi

of

i'

■;

The New School for

v

Water
Haupt & Co.,

i Broadway, New York 6, N.

e

School

—rnmsms—*-

On Shape

New York.

common

California Consumers Corpora¬
analytical study—

is

1,-i

Brook

Spring

LO,
Co,—Analysis—Ira

W

of the-: faculty of

University
Commerce. v-v;.

New York

Cherne

Scranton

U; S.

Company—Descriptive

° f ' JK O
Journal of

For several years he

member

was' a

on

was

EdiT

^01*

:

";v

Commerce."

du|n

,

available

,•>

he

Railroad

McKnight ;

David W.

1934;

;

prior to which
t ime

'•

Lubetkini &
Co., 41 Broad Street, New, York 4t

Le

tion—detailed

Also

...

Publishers.

Wellman Engineering

of Oxford Paper.

since

n. y.

ii

Research

'tgus

Seheriley Distillers Corporatioi
—Brochure of articles they have
been running in thg Chroniclewrite to Mark Merit, in care 05
Schenley Distillers: Corporatlqtt,
350 Fifth Avenue, New York 1

Coca-Cola.

Productions; Foundation Com¬
pany; and Segal Lock' &
Hard¬
ware.
: y -i'/v."
,;V -V.
■

study—

special

—

1916

Stock Exchanges
Chicago Board of Trade Vi r

Tel'. Franklin 8622

a

ney

Bowser,

been with Ar-

; Also

Street, Chicago 4, 111. '

Members Principal

10 So. La Salle

is

circular—Seligman,

Co., 231 South La Salle

Also available is a

Paul M.Davis &Oo.

.

Mr.

search.

Brdthersr l529ii:Walnut

Printers &

.v,y ■

N. Y.

of Panama

,

Request.

on

memorandum
on; Thermatomic Carbon Co.; Red

American Service Co.—Circular
—Adams &

•Wells-Gardner & Co., Com.-,
•prospectus Available on

Corp.—Circular

Young,

Tornga, Grand
Bank Building,

Co., Coin.

y;;-

Also available

American Forging and Socket—
Circular—De

Wall St.

Steel 8c Wire, Com.

Globe Steel Tubes

■

Hajoca

analysis M. C.

P.—Raymond

Y.

Rock Bottlers, and a new

Corp., Coin.

^Burton-Dixie

Coaly-Anal¬

County

of condition and post-war
prospects—F. H. Roller ;
CoInci., Ill Broadway, New York 6.

5%

after taxes—ask for

W. Borg Corp.

George

The

_

Direc-

of .Re¬

McKnight had

Stiieet, PhiladelphaV 2; Pa>;ry
yv
y Also
memorandaon. G e a r
Grinding Machine Co; and United

ysis

Mich.

*

N. Y.

their

as

tor

investment; com-

•

firm

;

& Trust

memorandum

ciated

ass o

Pump,— Memorandum

Bupkley

in¬
teresting possibilities—Hoit, Rose
& Troster, 74 Trinity Place, New

the

ration, is; now

;in the United States—Du

Reda

y

GfjWhite

Company, 37 Wall Street; New

&

—

.

Re¬

Argus

with

w

$100' par preferred
stock of $67.50 and interesting re¬

ST., CHICAGO 4

Randolph 5686—CG 972
New

Company

England

of

r—

N.

ceipt

HICKS 6- PRICE

pai^y

alysis of company established in
1862 on which there are arrears
on*

'

■ "-y

tion—Memorandum—J.

,

suggestions—John H. Lewis & Co.,
14 Wall Street; New York 5, N. Y.
New

Co.—

Federal "Water & Gas Corpora V

York 5,

i

^-Descriptive

Appreciation—

for

Investing

.

Analysis—W. J. Banigari & Co., 50
Broadway, New York 4, N.\Y."

Fortnightly

developments and the

Consolidated Gas
;
Utilities Corp.
1

/'I; • v:
- —
Public National Bank

oldest'' leverage

Street, New York 4, N. Y.
V
Also available are memoranda
on i recent: railroad reorganization

r

that

ly search Corpo¬

Shoe—new memo¬
randum—Loewi & Cot, 225 East
Mason Street, Milwaukee 2, Wis.

Comnany—Circu¬

Birmingham
Farrell-Bii

bankers,

Knight, for¬
merly V.-Pres.

Nunn-Bush

rr/

Sheller Manufacturing Corp;

Trends—in the retail
and
building * trades—memoran¬
dum—H. Hentz & Co., 60 Beaver
Industry

invest¬

David W. Mc¬

..

vey-^-E. F. Hutton & Co., 61

For

New England

Co^-Analysis,: for dealers only—
C. E. Unterberg. & Co^ 61 Broad¬
way,;.Ne\y York 6, N;,Y.
; -fv-'
Electromaster
Inc. —•LRecent
tv/Also for dealers only are anal¬
report
Mercier, 1 McDowell
yses of National Radiator Co. and
Dolphyn, Buhl Building,"; Detroit
Republic Pictures.
"
p
26,: Mich."
; ■■ , <;: ■
Also
available
a
report >. on
Railways & Light; Securities Co,

Elec¬
Fort¬

for
the

Wall

1

ment

Engineering Works—
Circular-—Amos Treat & Co., - 40
Wall Street,"New York 5, N.-YA

Products.

Pinna

De

Street,

":,,r- /-'?

Northern

Shoe;
Win¬
ScsJons;

&

N. Y.

m

Walker & Co.,
New ... York City,

h.

Public Service—
an appraisal of outlook and
pos¬
sibilities-—Daniel F. Rice & Co.,
14 Wall Street, New York 5, N. Y,
*

Canadian Dollar in lar—Herrick, Waddell & Co., Inc.,
terms of the United States Dollar
55. iLiberty Street, New • York-'5,
—Wood, Gundy & Co., Inc., 14 N. Y.
Wall Street, New York 5, N. Yvr

CARTER H.CORBREY&CO.

,

.

the

of

ages

CHICAGO B

j

American

Lamson

Purolator

and

V-G.

announce

wv

1919

1,

AMiddle

Airways;

Glass;

dow

York—
covering the period Jan.

Canadian Funds in New
A

;

Alabama Mills, Inc.; Douglas

TACA

La Salle Street
CHICAGO 3

120 South

Tel. Randolph

following literature:

Broadway, New York 5, N: Y. Also
available are late memoranda on:
Great'
American
Industries;

Stock Di¬

Insurance

McKnight With

G. H. Walker

common-

pleased

firms mentioned, will be

interested parties the

to send

David

-i

circular — Dayton
Haigney & Co., 75 Federal Street,

Boston 10, Mass.
It is understood that the

'

Descriptive

Recommendations and Literature

Ray-0-Vac

;y

.

Pittsburgh

Minneapolis

rL^.vFINANCIAL

-few-.;:.

;,•?'■ >;■•

K*%"< •'" V.W"

m ■ j!

I ji■'

i'"i".

'

..'

jjiAMHi

: -'.'..""i1..'i-.i"i'j

w> »«»i

w jyty
wwywgry *m
t

< Special

t;.

;j.r

v

■

?r'

ft'
1

••"•

.

►'Special

Chronicle i

,

CHICAGO, ILL. — William L.
Christy,i L.vle vW. Hamann. and
James R. Murphy have: rejoined

r

v

|k.
■A;'

La

Salle

'.

*. «•!',• '••■ •*' '
; ,f-. ,!V"4. •*

Street,; after
"

••'i'S '■ V' (SpeciaLto Tub- Financial .Chronicle)
s
\
i CHICAGO, ILL.—EvereM F.

'••"' '*

1
"'T •'•'
\X'!
The.- Financial,"
•

'■»

•

•

become

("Special to The.; Financial

:

CHICAGO,
,fiV* jfoonan > has

to

h n
P.
; become
connected
First Securities Co. of

v

with

the

;|CPirCAGO,

have; rejoined

Stuart

Co., Inc.,

\

to

The

'

■

'/"

(Special

j.
ILL. — Herbert
Burt has rejoined W. C. Gibson &
Co., 231 South La Salle Street,

CHICAGO,

with

Freres

to

The

.&

Inc.,

t

to

Chronicle) j a-

1 S.

Lynphv

.

.(Special

to

The

Financial

ILL.

v

(Special

to

The

—

f

Chronicle)

He

was

[B.

for¬

has

Emerich

Ames,

Co.,

&

Inc.,

(Special

to

p(Special to THe Financial Chronicle) «v

become

associated

Xynch, Pierce
Board

of

with

Fenner

Army.

-,,'

•

-

:

•>.

—'1

*

has

'

'-'A

"

i

>'■

Forbis has
&

Street. He has recently been
ing in the U. S. Army.
(Special to The' Financial

-

serv¬

j

£

CHICAGO;,

Chronicle.)

ILL. —Martin

?

D.

Lynch has rejoined the staff of*A.

*-

G.

De

Becker

La Salle

Table, Jr., is with David A. Noyes
& Co.„ 208 South. La Salle Street,

& Co.,

been

on

1931.

-

La

Inc.,, 120 South

Street, after service with

the U. S.N aval Reserve.

Army

He will

handle

in

Un¬
Anticipation

Tax

covering

v 1

a s

Brothers

Salle

Street

CHICAGO,

since

|
i

ILL.—Lt.
has

been

D.

of

Sargeant
with

J.

has

half

'

WE

|

'••

Taylor Joining

•;

become

has

conducted

associated

has been in

1941

and

Pickering Lbr. Co.

-

Assoc.

the

U.

CHICAGO;, ILL.

•

' '

■'

'•

•

.

Hall

has

become

Buchan

Chronicle)

& CHICAGO;, ILL. — Arthur h.
Bothen has rejoined First Securi*

(Special

Pearson
staff of

Request:■'>.

on

;

l

v

So.

ILL.

has
W.

of

MICH. —The

Randolph 8800

firm

Exchange from July,

Carr,

Chapin & Co.,
Building, members of

Exchange, will
Roy F.
Chapin will retire from partner¬
ship in the firm.
Partners in
Carr

&"Co.

Carr

and

will

be

Valette

Howard

D.

members of- the Detroit

general

Eis,

Active

*

F.

both

American Service Co.

Preferred,

Exchange,

partners, and Sewart N.

Lawson, special partner.

Common

Stock

Member

New•

York- Stock

.

been

La Salle

^(Special

_■

1942,

Exchange,

Salle St.

So; La

208

CHICAGO
Phon®

Andover

1436

'

"

4
Tel®.

-

CO

156

Interstate Aircraft

.

&

Chronicle)!-

to

Financial

P

Co.,; 231

1

u

bIi

(Special

^

to

The

Financial

Hack-

Chronicle)

.

upon

Plans

A.CJUXYNandCOMEANY
Incorporated

I

MINNEAPOLIS

MILWAUKEE

BOSTON

OMAHA

■

'*'■

•

N. Y.
-

Boston Chicago Philadelphia San Francisco

II

Common Stock
(Listed

on

pfd;

bought
A

sold

New

Publications

Gisholt Machine

the Chicago Stock Exchange)

Memorandum

All Wisconsin Issues

quoted

Sent

on

Request

HOLLEY, DAYTON & GERNON
Member—Chicago
105

So.

•

idew-oers

SAT T,F

Guenther Law

Telephone COrtlandt 7-5060

,

NEW YORK

-

Incorporated
■
131 Cedar Street New York
6,

CHICAGO

/

Branches

Prepared—Conference Invited

Albert Frank

1;

•

DOYLE, O'CONNOR & CO.
street

chicago 3, hxinois

A1 l its

In

Macfadden

-

(

ADVERTISING

Municipal

request

FNCQR.POR ATED

1

,

Illinois
Phone State 0101

FINANCIAL

Railroad

CHICAGO; ILL.—Lore W. Alford has rejoined Harris, Hall &
Co., Inc., Ill West- Monroe Street,
after serving in the U; Si Navy.

*Prospectus available




:

#

.

U t il i t y-

c

industrial

tf

Chronicle)*'

ILL. —Paul

portland electric power prior

6r<?1

request

■

Street,

The

Chicago
Teletype CG 361

-

Telephone? Dearborn

on

231 South La Salle Street

BONDS

coca cola bottling of chicago

sottth i.a

Common

circular

XADAMS & CO.

:-

.135

Engineering Corp.

•Recent

weyerhaeuser timber

-a:

/ Common

Common

Diamond, Turk & Co., 30 Pine
Street: New York City, members
of {the^ New York Stock
Exchange of the New York .Curb Exchange,
and other leading ^-national
Ex^ admitted Richard W. Weinberg to
changes.
.• ■- partnership in the firm on Dec. 17.

;;*hallicrafters

'

;

Common

Mich. Steel Casting Co.^

Diamond, Turk Admit

until

-Hornblower & Weeks,
established in 1888; are members

Donald: 1 C.
added to ' the

was
overseas
thirty-four months
in; an-anti-aircraft division;
*

"and other Principal Exchanges
■

Class A and

R. Hoe & Co., Inc.
;

>

1935

Co., 208 South La Salle Street. He

FAROLL & COMPANY

Trading Markets

last June;

bert, who has:, been serving ' as
First Lieutenant in the U. S. Army
has rejoined Goldman, Sachs; &

Standard Silica Corp;

CG 1234-5

Direct wire to New York

*

President of the

was

—

C. Gibson &

CHICAGO;

Common Stock

v

*

be changed to Carr & Co.

Mr. Tay¬

'

Merchants Distilling Corp.

v

Field BIdg., Chicago 3

,

—

to-The Financial

CHICAGO,

Analyses

'*

'■

Chronicle)?

Corporation, 231. South La; Salle
Street;, after serving in the armed
forces.
'
'.

Salle-Street;

Recent

*

5-61

have returned to the First Boston

Faroll & Company, 208 South La

XSpeolal to The. Financial

Elec.

HICKEY& CO.

j

*

'

■

Andrew j D.
and " William
J.
Gratia

CHICAGO; .ILL.

George hp.
affiliated with
—

&

Griess-Pfleger Tanning

.*

S.

;

(Special to; The Financial

.

v

Gas

American Util. Service

-

:after serving im the armed forces.

Mfg. Corp.

the Detroit Stock

lor': served as a member of the
Board of Governors of the Balti¬
to

-

Penobscot

R.

WTeeks,

Exchange from

* r"

'

DETROIT,

Howard:) R.

as

IN

A.

years

name

Keyser Building, and is liquidat¬
ing the investment business which
he

ACTIVE

Minn. & Ont Paper

Name to Be Carr & Co.

Taylor, member of the Baltimbre
Stock Exchange, has become asso¬

Taylor & Co. since 1908;

ARE

Long Bell Lumber

Denver for ten years,

ciated with Hornblower &

CG 573

Navy, was formerly a partner in
Sargeant,. Malo & Company of

&

Field Building.

.'••• BALTIMORE, MD.—Howard

Tele.

&

Hogle & Company,
Equitable Building. Mr. Sargeant,
who for the past three and one-

M.

Lewis

Chicago 3, III.

Tel. STAte 4950

DENVER, COLO.—Raymond E.

released

Benjamin

-•■;

,;v-

,

a

part¬

Raymond Sargeant Is
With Hogle in Denver:

has

Rutherford Rejoins Lewis

Co.,

his

Galvin

Illinois

Mr. "Bothen

——mrnmmem**-

partment

e

general

Orvis

change.

the

J

Rutherford

in

ner

lac

>

13S South La Salle Street

lias

bers of the New York Stock Ex¬

issues

-

p

•

o

KITCHEN & CO.

active

and

resumed
Com. Warner D. Orvis

-

.'•

has

be in

to

derwriting S of

more-Stock

Chronicle)' tV

CHICAGO, -ILL —James
(Special to The Financial

Sales

duty

*,

*

released

from

Weeks;

CHICAGO, ILL. — Harold N.
rejoined A. G. Becker
Co., Inc., 120 South La Salle

Beane,

&

Trade-

& Beane.

financul

Merrill

Building, after
serving in- the armed forces. Mr.
Bowen was formerly with Bacon,
"Whipple & Co.; Mr. Dalton was
with Merrill Lynch, Pierce, Fenjner

The

been

,

*

•

.

New

in

York,
:

,

Airlines

ment and Ma*

„

j

Mid-Continent

Office

Department and will

the

ilil
Chronicle)

Street, after serving in the U.;S.

S.

Bowen and Edward J. Dalton have

their

t

ILL. — Benjamin
rejoined
Bacbn,
Whipple & Co,, 135 South La Salle
Crawford

ILL.—Clymer

MARKETS

Chicago & Southern

Di¬

Co., {14
Wall Street, New York City, mem¬

also •continue

Howard

CHICAGO,

..

CHICAGO,

TRADING

Procure¬

of

105

South La Salle Street, after serv
•j
ing in the U. S. Navy.

.Street, after serving in the U. S.
Army.
•
-r",'•.■:£>
■

vision,

from the United States Army and
returned to the Buying De¬

Salle

South La

«

,

in

operation

has

Chronicle)

Financial

■

135

Navy,

officer

-charge of the
Industry
Co«

Chicago, 134
Street, after 21

duty with

¥»>•

William

ILL. —William :B.
joined the staff,of

CHICAGO,

Bax has returned to Kidder, Pea-

ti( Co*,

previously with Frank
Co. and Corrigan,

Newman &

service

States

of

Salle

Warrant

previ¬

merly with Blyth & Co.

CHICAGO, ILL. —Paul Joseph
foody

La

Municipalities.

Building.

Slayton & Co., Inc.

Chronicle)

Thb- Financial

Financial

with Merrill

now

McNulty
(Special

Company

South

months'

i

;

Pierce has become associated with

Street, after serving in the armed
forces.
:v:-'
"/.
'
/y&f. ••
■

formerly

was

Salle

La

Miller & Co.

Arthur

the United

as

CHICAGO,

;

Pierce, Fenner & Beane, Boardt of

.

Chronicle)

South

135

■

Arthur Bothen Rejoins
First .Securities Co.
;

Trade

.

has rejoined Harriman Ripley

Co.,

South

Co.,. 231

He

He was
ously in the U. S. Army.

;I CHICAGO, ILL.—John H. Jack¬
son

'-r-*

ILL. —Samuel

CHICAGO,
Financial

&

CHICAGO,

serving in the armed forces.
The

and one-half

teriel

the South Pacific.

CHICAGO, ILL.—Hyde Gillette

to

Chronicle)^ -a
Robert M.

Glore, Forgan & Co.

(Special

fias rejoined Glore, Forgan & Co.,
135 South La Salle Street, after

(Special

AA-.

>

ties ^

ILL.

La Salle Street.

Chronicle)

Financial

South La

Street;*

Lazard

Bafton is
The

HalseyV

Barnes has become associated with

completing his service with
*he U. S. Navy.
A-.-;,
to

was

D.

in

Ha.nmer has, been released
from
active duty as Captain in-the U. S.
Air Corps, and is
again with John
Nwveen & Co., 135 South La Salle

ILL. — Arthur
H.
Bothen. has rejoined First Securi¬

after

(Special

123

to r The .Financial

CHICAGO,

Chronicle)

Financial

&

;

Street, after serving in the
armed- forces. ■:•••
'".h: :"a- ' \A.\

after serving in the U. S. Army.;
(Special

Davis

vis,; after two

Commander

[ years'

SaJle

o

Chicago, 134 So. La Salle Street,

.

thiessens
Chronicle);.•:

ILL. —J

Warner DvOr~

.

offices in the
Shoreland Building* to engage in
the
investment
business.
Mr.
opened

.

'

! V

has

.

;•

Opens Office

FLA. —Paul

Davis

Orvis Bros, ft Ge.

Chronicle)

"

,!<:«.

associated
with Howard FV Detmer &" Co*, t.
(Specif to. The '.Financial * Chronicle)^ 105 South La Salle Street,;- after
J CHICAGO, :• ILL:,— M.'\ Scott
serving in the U. S. Navy.
Bromwell
and
Riehard P. ,Mat-

r

MIAMI,

ill:— Edward R,
Lienfn'gr. has rejoined Valiquet &
/ CHICAGO,?. ILL; — Russell i €*.
tCo.v
-135
South
La Salle Street,,
Longmire has rejoined W. .C. Gib*
iftbr serving in the armed forces.
son, &
Co., 231 South ». La Salle
; V
Street, .after serving,in :the iU.^S.
(Special to The Financial Chronicle) '
Army Air Forces. • v,^v
•'
A^CHICAGO, ILL..— Albert S.
(Special

serving'in the armed forces. ■'

J*.. Sepgers"'.. has

Paul A. Davis

'

J

the staff of Central Republic Co.,

209--South

3X39

m.

Chronicle)

isWith',Slay ton & Co., Inc., after
.completing his service with the
ties,? Company
of v- Chicago,j~ 134
afrried "forces.
South La Salle Street, after serv.f
ing in the U. S,.Army. *«•
}*•&«-"-*
(Special to The Financial

_

to .Tub... Financial

to The Financial

,

nimn

^CHICAGO, ILL—Ray R. Kidd,

CMcagogPeiH^^

t- r

:fr;

CHRONICLE

tgw^A'iiwuw'Wt' —jwnnmnw mmmmimmmimmmm

'

225

EAST

PHONES—Daly

Chicago

MASON ST.
5392

Chicago:

Stock
*

State

CG

Exchange

MILWAUKEE
0933

(2>, WIS.
Teletype MI 488

Ekchange

Stock

La Salle St.,

262

Chicago 3, IU.
Central 0780

Offices in Wisconsin
Eau Claire

-

Fond, du i ac

Morton

-

pa Crosse-

)

o

CHRONICLE

THE COMMERCIAL & FINANCIAL

3140

Thursday, December 27, 1945

the value of the Canadian dollar.

At

a

,however, world

later, stage

economic

the

and

conditions

ffOu r

progress - of
Canadian develop¬
ment are likelv to make it diffi¬

By BRUCE

«

cult'for

WILLIAMS

the

Dominion

the

Repo rte r

resist

to

Governments"

on

By JOHN T; CHIPPENDALE, JR.

upward pressure on its cur¬
'

rency.

whither now? With the virtual certainty of
implementation of this ambitious international currency plan
before the year-end deadline many exchange doubts should soon be
put to rest. What of the long-awaited restoration to its old parity of
the Canadian dollar, and of the fate of sterling which has such a vital
bearing on the Canadian currency level?
'
;
In Spite of the wishful thinking »
ors in Canadian internal securities
of many recent speculative investa logical appraisal of the situation
;

Brettori Woods and

Turning to the market for; the

hasty

leads to the

past week, in spite of the holiday
influence there was still an active
demand for high grade externals,
and Nationals pushed still further

beyond their all-time highs. Montreals and Albertas

conclusion that there
change in the initial

at

lollar. In the present

STOCKS

BONDS

system

retained.

is

0,11
external

MARKETS maintained in
classes of Canadian

and internal bonds.

Stock orders

\

.

executed

the

on

Stock

Montreal and Toronto

New

Exchanges, or at net
York Prices.

'

With

unchanged," the
of other currencies

Buffalo, r

Toronto and Montreal

V i-

:

Dominion Securities
Grpoeatioti

_

;V

40Exchange Place, New York 5,N.Y^
System Teletype NY

Bell

■

1-702-3

recession.

high

/•j ■ >j

"JyA,

Vv

PROVINCIAL
MUNICIPAL

•

/

'

J

tee

Commit-,
for Eco¬
,r

New/York
City, it was

Rv Johnston

Henry

Canada

make

expensive

by

her

J.

nt.

at

■

Presi;
Mr.

one

offices

if

prices should recede.

to

af¬

engage

Levin

in

A. E. AMES & CO.
INCORPORATED

,

Canadian Dollar in terms

/''"f

available

Copy

,

1945

averages of the
of the United States Dollar.

upon

low

14 Wall

NY-1-1045

Toronto

Montreal

excess

of

smaller

Vancouver

'1

important point of concern

most

the

Probably

Industrials

—-

Banks

—

M WALL STREET,

Mines

1

quarters that the Treasury, in order
offset the inflationary potentialities of the large bank deposits,

to say

nothing of the future increase that will take place in them,
maturing obligations with issues

should refund the callable and
that

suitable for purchase by the

are

,

.

.

.

much new money in the future so
a debt conversion program into
operation.
A substantial amount of the outstanding certificates,
largely held by the banks, should be converted into long-term 2y4%
and 2V2% bonds, which would be sold to non-bank investors. . . .
This would cut down the amount of bank deposits and purchasing
power, which are not needed at this time. . . . This would also tend
to prevent the restricted bonds from rising too sharply. . . .
The Treasury will not need

.

is

in

now

position

a

to

put

.

.

ANOTHER WAY

t
*
, ,
-J ^
should not see fit to offset to a con¬
inflationary implications of present and in¬

-

_

^

Even if

5

the Government

the

extent

some

it could improve its future borrowing position' by
of the floating debt through the offering of some

obligations to the non-deposit institutions and
the commercial banks. . . .
;•

medium-term securities to

^

beneficial effect on the Gov¬
ernment bond market, since it would prevent the presently out¬
standing issues from going to prices which many of the coinmercial banks can no longer afford to pay. . . .
~
;
would

would

also

likewise have

keep

these

a

institutions, principally the

Stock

Exchanoe

CANADIAN SECURITIES
Government

•

Provincial

•

Municipal

•

Corporate

Montreal

,,




may

March

i-

r

y. -

ZrS.l} I' ~ ■$1.*is 1

7

%

1

,

.

.

,

:•;y /." 'H

be

that the market

maturity of

exempt 3s and 3%s will be
probably be a mneh clearer conception of the
Government's future refunding program. . v.
On

June

15 when the partially

retired, there will

^PJrrpf private wires to Toronto
and

'

will get a clue to the policy the
committed to. when notice is given as to the way
1% rotes and the 3%% partially exempt
bonds are going to be handled. . . .If these issues are refunded with
certificates, it is quite likely that the Treasury is still confining
itself to the policy, of cutting debt charges without too much con¬
cern about future consequences. . . ,RThe 33/i% is a small issue ?nd
may be paid off in cash. ; . . This would reduce deposits somewhat
and might indicate a change in policy. . . .
; \
It

the

61 Broadway, New York 6, N. Y.

WHitehall 4-8980

.IDE'S OF MARCH

smaller

quality obligations, that

Treasury will be

CHARLES KING & CO.
Toronto

insurance companies and»

This would entail some increase in the debt
service, but it was pointed out that this would be much less ex¬
pensive than the cost that would be exacted by inflation^,. * .
savings banks.

London, England

Bought—Sold—Quoted

¥«niher*

among money

is believed in some

It

ong-term high coupon

WHitehall 3-J874

,

high coupon
...

the Treasury in re¬
funding callable and maturing obligations during 1946. . ; . The pro¬
gram that will. be adopted will have an important bearing on the

some

NEW YORK 5

"

,.i,

i

experts is the policy to be followed by

market

from buying non-Government low
caused so much of their trouble in the past.

STOCKS

Thus the ;

NEXT; YEAR?'-:!/-

creased deposits,

Company

.

1959/62, as previously indicated, will be a
purchases will be in excess of S3

by the continued refunding of the
short-term low coupon issues.

offset it

will

ury

It

&

.

although

issue

ones,

Taylor, Deale

.

marketable issue,

callable obligations with

•

CANADIAN

billions which would

which would bring it in line with the 2V4S due 1956/59,
which are outstanding in the amount of $3,823,000,000. ... The large
subscriptions to the 21/2S will increase slightly the debt service,
which leads some in the financial district to believe that the Treas¬

This

Street, New York 5

Winnipeg

$11

billions,

siderable

written request. *7•*' v-

Incorporated

i

RECTOR 2-7231

chart covering the period

period resulted in

the

The 2V4S due Dec. 15,
much

2751

Wood, Gundy &Co.

NEW YORK 5, N. Y.
.

a

TO JUNE,

.

.

15, 1967/72 would be the last long-term

in

amount

an

over

eliminating

TWO WALL STREET

/

1919,

be

position previously held by the 2% due Dec.
15, 1952/54, and the 2% due Sept. 15, 1951/53. . . .

taking

it

which records monthly, high and

&

?

1,

This

total will amount to more

goal set by the Treasury for the drive.

the entire

J/ V

associated with Roggenbrug & Co.

have prepared

we

JAN.

.

.'

2lA$ due Dec. 15, 1967/72 will be the largest

to

Canadian Funds in New York

.

purchases of this bond alone would be greater than

that

mean

formerly

was

*

it is believed that this obligation will be out¬

Accordingly

in the securities busi¬

Mr.

ness.

voluntarily raising

Under this title

..

that the Victory Loan

is indicated

standing

University Avenue, Bronx, N. Y.,

more

;

good opportunity for investors to pick up issues they , can

high coupon issue to be offered for a considerable
great scramble to buy this bond. . . .
,

time

at

.

a

Yale Securities Co,
with

.

these sources.

and this could cause some selling from

Fear that the 21/>s due Dec.

charge of the Trust De¬

Co.

.

than $22 billions, which, probably means that the Treasury will
out of the market for new money until the early fall of 1946. .

Yale Levin is forming Yale Se¬

curities

of the elimina-

effect.

probably find that their borrowing rate from
the banks will be increased if the differential discount rate is re¬

was

*7

/

will

dealers

.

CANADIAN STOCKS

good buying opportunity at that time

tion of this discount rate, or rumors to that
The

bee-Presi-

;

a

...

yestment firm of Case, Pomeroy &
Government bond market.
Co.,"Inc.
7

i

not

can

exports

by

Andrew

e

be

prices receded temporarily, as weak holders were shaken
their securities.
It will again be a good time to buy

if the market should lose its equilibrium because
/

partment of Manufacturers Trust
Co. and later President of the in-

Even with
the implementation of the Bretton
Woods plan there will still be im¬
port quotas and until there is a
large
measure
of freedom
of
trade

in

dent

largest in the world.

to

1•>

,

trade is the life-blood
of the Dominion and its propor¬
tion to national income is
the

ford

announced

Johnston

ex¬

,

out of

Shares, Inc.,

d

turned out to

It

when

n

C3 Wall Street,

Lord,

.

,.,

Busin ess

.

.

publicity after the Seventh War Loan and had the market confused
a short period.

Devel-

America

y

5

.

,

for

It

en r y

nomic

regarding

of existing

„

.

,

BULGING TREASURY

;R.
ohnston,

the

commerce

^

,

.

Treasurer!of

elimination of currency
In the case of Canada there

maintenance

1 < ;•••

..

change as a market factor seems to have been quite fully dis:ounted.
Rumors of a rate change were-given considerable

would be a

H

interested in the re¬

change rates.

alltime tops/.

rate

moved

Am. Business Shares

the

world

CORPORATION

to

far

y

Johnston Director of

to Britain to devalue the
pound—for some " time ' imports
will
rank
before
exports. This

concern

The partially exempts

.

Reports that the differential discount rate would be eliminated
caused a short-lived flurry in the market,
.The importance of this

——'

tage

more

new

FULLY DISCOUNTED

use

will

Export

7.;•/. •

continues

outstrip the supply,

director of

the

•«;

securities

domestic

demand

with

considerable

even

.

with the rest of the list, as the last four maturities pushed

pace

to

on

dif¬

a

contrast

psychological influence on other
countries. Apart from the ques¬
tion of the preservation of cur¬
rency
stability
throughout
the
world, there is also the more
pressing factor of self-interest. ■':n There is no immediate advan¬

international

kept

Canadian

rencies could exert a

is

\

in

still
of

been elected a

wars.

GOVERNMENT

grades

and

is

favor

leading cur¬

of

.

108 for the first time.

which "sold above

rather than

isting parities of the

is

.

holiday mood. V
The upswing this time was led by the restricted
2V4S due 1956/59, and this issue went on to a new alltime high. ; . .
Close behind was the bank eligible 2V2 %
due Sept. 15, 1967/72,

v

pros¬

opment, has

vival

a'wT*:'-

"'/<

/

of the ex¬

and

.

This de¬

future

to

There

in

comparable

greatly simplifed. Some con¬
templated devaluations might be
postponed until it is possible bet¬
ter to assess an appropriate level
based on world trade movements
under freer conditions. Currency
devaluation in
itself is not a
remedy for economic ills, and it
can become a bad habit.
1

country

CANADIAN BONDS

renewed

was

to 2.90.

rose

regard

ferential

be

Thus the maintenance

Direct Private Wires to

There

of further advance

ratio
realignment, if

necessary,

de¬

steady

.

is high there is more likelihood

'

-

ti

;

reports that the differential discount rate would be eliminated, the
narket turned strong when no action was taken and prices again
noved into new high ground.
Volume was not heavy aad activity
was
somewhat restricted since the financial district was alsb in a

pects although the general level ;

dollar

sterling

/ \

be reflected marketwise.

world state

to

,

the

With

''

velopment has highly promising
prospects which should ultimately

the new will
be accomplished with the .mini¬
mum
of dislocation if the basic
common factor of a
90 cent Ca¬
nadian dollar and 4 dollar pound
old

9 3/16%.

Iron which

of doubt and confusion any recog¬
nized stability is noO to be lightly
abandoned. The transition from
the

fairly

were
'

in

display of interest in Steep Rock

Canada
.n particular has based
its whole
aconcmy
and its very efficient
system of controls on the 90 cent
the war years,

During

maintained.

ac¬

mild recession the middle of last week, caused by

a

mand arid free funds Were steady

sterling.

nadian dollars and

although prices

well

were

less

were

tive

Internals

will be no
relationships of the U. S. and Ca¬

CANADIAN SECURITIES

Following

';v-

V

'

Y

,Y-.

Volume

Number 4450

162

THE COMMERCIAL & FINANCIAL

CHRONICLE

3141

.

Ohio Municipal Comment
'The year 1945 draws to a close with prices of Ohio municipals
coritinuing the upward march toward the peak levels-which obtained
in the bull market for ta?oexempts earlier in the year.
Indeed,
recent evidence

the

suggests that the Ohio market has

of Pathe

formidable

position it enjoyed prior to the sharp setback suf¬
the entire municipal field in consequence of V-J Day.'
;

fered by

comparison of the ;

a

time.

and

the

at

Appointed by ABA

to

weekly data compiled by J. A.
that

&

composite

bonds

is

yield

20

on

1.29%, as
against 1.40% in the September
period.

grade
is

now

In the

the

bonds,

1.13%

10 high-.,

of

case

yield

current

compared

as

The

sharpest advance has taken
place in the 10 lower grade bonds,
the

level of 1.45%

present

in contrast with the

1.65%

Cleveland

of

Trust

Co.,

Commission.

figure

which " obtained

short,

market

the

several

the Ohio municipal
participated fully in

has

recent

marked

H.
of

Subcommittee

5219

U.

Legislation.'
R.

S.

S.

of the Committee

ris

committee

The

sewers.

V:.

Douglas, Assistant Coun¬

sel of

State

(•;

v

Assistant

former

'

'

I

from

tax

1947

loan

to

is

due

U.

*

in

succeeded ; in

than

more

half

of

the

the first day.

The

East

,

Cleveland

ker, who also
land

placing
offering
'
•
issue

Ohio
bid

on- a
a

Company of Columbus,
of 101.292 for Is,
making
than 0.79%.

more

not

were

•'

tf

i

While

the

prospective
number

of

principal

*

:
*

current

which
on

Nov.

6

election.

total

a

is

will

4

of

Franklin

bids

open

of

$1,900,000
bonds, being part of the $9,500,000
authorized by the voters at the
The

offering consists of five
issues, with the over¬
maturity dates being from

separate
1947

to

been

1970, inclusive.

awarded

citation

a

for

'■

The citation reads: "For excep¬

tionally meritorious
performance of

in

conduct

the

outstanding
services in the Headquarters Army
Air Forces from June 10, 1943, to
Sept. 3, 1945. ;
"Lieutenant Colonel Skall dem¬
onstrated

exceptional

initiative

efficiency in determining the
rapidly changing requirements of
Pacific

the

awards

Jan.

all

has

and

includes
a
substantial loans, the
:

Stock Exchange affairs be¬
entering the Army Air Corps,

'•

•_

calendar

contender

County,

The bonds

reoffered.

active in Cleve¬

was

Legion of Merit.

net interest cost to the borrower

of no

G.

fore

of

$230,000 general building improve¬
ment
bonds, due from 1947 to
1956, inclusive, war awarded to
the

David

•n

Theater for

balancing

against

units;
requirements

these

available

air

and

resources

capabilities, and in developing and
executing plans by which these
requirements were met wi thin the
time schedule imposed by combat
operations.As > a result of his
imagination and resourcefulness,
the weight of air
power brought to
bear
against Japan was meas¬
urably increased."

and

Ohio Personnels
u

Formed in Cleveland
to

i

the

Inc.;
:

and

-

THe

Financial

Harry

and

E.

(Special

to

U.

will-

The

Financial

has

Financial. Chronicle)

thereto he

was

with

(Special

>

McKee is

lected

from




be

se¬

finest

United World Pictures
was

'•C»A

total

shares

to

1.25%

as

Co.,

&

Co.

&

❖

the

Benjamin
counsel.

*

\

■

The

Bank

Robertson

i

now

,

Board, of
Williams

-

is

Vice-President

Vice-President

•

and'
general
Sherwin-Williams Co.

manager of

and

Sol

B.

Coolidge

Vice-President
auxiliaries

director

:

•

of

the

the

company's
and pigment

*

\

s|:

-

ill

*

1%%

*;;. ■:

700,000

for

■■

common

Corp. com¬
offered to selected

type

of

The

1946
from

:

Erie

Railroad
less

finance

to

,

*

security

maturity

the company.

'■

notes

was

believed to be the lowest rate of
interest ever received for that

by Otis & Co. at $5.75 a
less a commission of 37 V2
cents per share. The offering did
not represent new financing by
*

$350,000

promissory

Erie officials said the bid

Alleghany
was

First National Bank of Scranton,
Pa., submitted the winning bid of

Steel Car Co.

share,

with

J

a

of 10 years.

notes; evidence of indebt¬

edness

under

conditional

a

sale

agreement, were dated January I,
and

will

June

1,

1956

mature

1946

quarterly
March

to

v.-.---

,

commercial

producer

coal.

nous

On

that

Bessemer

of

Michigan Pub. Service

bitumi¬

Leiand Electric

;

*

date,
Coal

the

of

merger

U. S. Truck

&

Coke Corp. of
Pittsburgh, with M. A. Hanna Co.

is effective.

merger
total

125

."

directors

of

971,764

to

;

-

voted

the

Charles

889,829

shares

*

*

B.

Merrill,

while

merger

voted
<■

";

Lines, Inc.

Standard Stoker Co.
Prospectus

j>r

Memorandum

Request

on

of

shares

the

were

Out

common

vote,
for

voted

shares
:

of

•

overwhelmingly.

against.

OTIS & CO.
(IncorDorated \
'

ESTABLISHED

Terminal

Tower

•

1839

Cleveland

.

13,

O.

.

Phone

Merrill,

president

Turben

&

Co.

>'•,:

Bell

<

,•

CHERRY 0260

Teletype

CV 496-497

of

Gruen
;

CINCINNA Tl

Watch, Com.

Sport Products
Whitaker Paper

SECURITIES

' Land Trust Certificates

:;

-

Globe Wernicke Com. & Pfd.

Manager
Multigraph

who has been

on

Horan &

Grischy

UNION TRUST BLDG.

CINCINNATI

W. D. Gradison & Co.
Members

New

York

Dixie

2

Cincinnati

and

Stock Exchanges—N.

Y.

Terminal

Curb

Assoc,

Building

CINCINNATI 2

Teletype CI 347

Teh Main 4884

Tele. CI 68

A 274

the

' t

WeKraan Engineering

CINCINNATI

■

Company

SECURITIES
T.

Circular

affiliated with E. H.
—

In

the

past

he

was

with

on

1

Request

★

W. E. FOX & CO.

Lowry

Sweney, Inc.

WM. J. MERICKA & CO.

Inc.

incorporated

;;„y r:>,

*

(Special

to

The

financial

YOUNGSTOWN, OHIO
D.

R.

Barbour

Field, Richards & Co.

Chronicle)
—

John

has. rejoined

the
"

staif

of

after

serving in the armed forces.

McDonald

&

Company,

Union Com. Bldg.
CLEVELAND'
Tele. CV 174

1,

•'

This

Saturday, M. A. Hanna Co.,
Cleveland, will become the largest
stockholder in Pittsburgh Consoli¬
dation Coal Corp., world's biggest

a

of

includes

oil mills,
manufacturing plants.

and can
'

named

was

and

which

management

dealers

.

and

the posts

Chronicle)

OHIO—Henry

the

Directors appointed M. J. Fortier
as

and

of

"r

Financial

to

Sherwin

■I

Company.
'

H.

of

Philip Carey Com. & Pfd.

over

Address ograph

j." Brainard,

Vicesales,
Robertson, have
of

Chairman

Reserve

Corp. on Jan. 1. He has left his
position as-president of General
Fireproofing Co. of YoungstownO., but will remain as a director,

associated

Lemperly,

$

of President and General
of

of

vice-

a

Investment

director

elected

S.

Brainard,

Federal

Gordon

been

Directors

/

.

'

C.

the

than 80 per cent of the cost of 100
seventy-ton covered hopper cars
to
be
built
by Greenville, Pa.,

:yv-'v.

••

Harris

:

of

of

stock

mon

announced Nov.

Robert

York,

Co..

Co., forma¬

28," it continued.
! Negotiations were .conducted by
G. I. Woodham Smith of London,
England, representing Mr. Rank.
Kenneth M. Young, President of
Pathe, signed for the Young in¬
of New

&

*

were

with

.50

Sutherland

entitled

the

exception
of those films to be distributed by

terests

from

Stranahan,

Roose

Rank

tion of which

Northern

by

•••;

product of
the producing organizations in the

Group, with

and

Prior

Atlanta: " In; the past he
Henry Zuckerman &
Co. in New York City.
with

the

will

elected

of

Hanna
films

Another

Arnold

Rollins & Sons, Inc.
He has re¬
cently been in the. armed forces.

Goodbody &

Co.; in

to

COLUMBUS,

Co.; Courts and Co. and Beer and
with

con¬

:

A.

Building.
Mr. Webb was
formerly with Thomson & McFla.

the

the

British

Co.,

headed

scaled

were

cers;,^-,;^
"The

M.

and

■t

merce

Orlando,

of

by- the

Young interests
through the Eagle Lion distribu¬
tion system will be high budget
pictures made by the outstanding
Hollywood
independent
produ¬

!

Webb has become associated with
Paul H. Davis & Co., Union Com¬

in

are

with Livingston, Williams & Co.,
Inc., Hanna Building. .Miss Marquart
was
formerly
with •' the

'

Kinnon

rest

"The American films to be

Cleveland, will take
.

Chronicle)

become

■

The

the

present Rank organization."

;

war.

works improvement bonds
Sept. 1, 1947-1976. The bonds

Ryan,

used, the

handled

S.

Association.

Charles

that Thompson

;

be

tributed: by

said

Products

Co.

were

existing Rank Group
S4 Eagle Lion Films,
be revised, the state¬

throughout

world

and

Three Ohio firms in the group

the

continued.

Corp.

yield.

Distribution in the British Isles

and

CLEVELAND, OHIO—Hilda M.
Marquart

Webb With Paul Davis
to

Schwall

Co., Inc.

Cleveland Trust

(Special

be

plant ; in
from Re¬

$807,350

Finance

group

due

South

Exchange

Club.

Hazen

President

,

•.

CLEVELAND, OHIO—Cecil

Chronicle)"/

of

as

Richard A.

Gottron, Exchange member.

to

with Slay ton &

succeed

Russell

to

name

for

water

the

will

ment
:

of

CLEVELAND, O.—John E. Dip-

pery

Gillis, Rus¬
sell & Co., Union Commerce Build¬
ing,' members of the Cleveland
Stock Exchanger Partners will be
James N'.

.'(Special
•

OHIO—Gottron,

Russell & Co. will be formed

2nd,

in

Bond

Bankers

a

member of

a

Stock

Toledo,
was
president
of

-

Gofiron, Russell Go.

Jan.

distribution

the
the

Sherwin-Williams subsidiary.

/

.

Co.,

turned out before the

Rank

Central; and

■

this

George

CLEVELAND.

the

the

Ohioan,

of

and

Cleveland

and

Chicago, purchased
$1,175,000 City of Elyria, O., 1.25%

in-,

&

General Manager of Acrrie White
Lead
&
Color
Works, Detroit,

Trust

trade-mark,

which

Murch

is planned to triple the com¬
pany's annual output of 500 buses

U.

name" of

Skall, well known Cleveland bro¬

The reoffering scale was from
0.50% to 1.25% and the under¬

writers

Colonel

the

Young

world..;;

the

S.

in

Lieutenant

next
minimum of

the

H.

Cleveland, was chosen to
three-year term earlier in

smelters,

America, including Mexico. It will
be owned by Pathe and will be
known as Eagle Lion * Films. To

Skall Cited for Merit

annually

under

the

ehable

1956, inclusive.

from

Lion,"

handle

•

to

limited

films

Merrill, who
Maynard If. Murch of

Maynard

It

A

starting
a

of America.

Co.,
Cleveland, world's largest
paint and varnish; manufacturers.

S., the Young inter¬
ests will form a new company to

Vice-

■

system,

Group and 10 Ameri¬

In

-

0

Sept. 1 from 1947
1976, inclusive, and optional on
and after Sept.
1, 1956, while the

the

Arthur

ten British films from

out the

President of National City, named
to Public Relations Council.

on

J.

and

20 films,

on

Brown,

Industries, stated

ation

succeeds

the

subsidary,
of Thompson Products, has bought
a
government-owned portion of
its Euclid, O., plant for $5,000,000
and that Ohio Crankshaft Co., Inc.,
has purchased a plant, for $608,000.

who

Union Cent. Bldg.

Members

Union

.

Cincinnati Stock Exchange

18 E.

4th St.

MA

^

t'

k

Cincinnati

1627

CI 494

Commerce1

Teletype
29

Building

CLEVELAND 14

Members Cleveland

CINCINNATI
Tele. CI 150

j

of

reports that it will center its ex¬
panded bus-building program in
this plant starting next summer.

.Group is already using through¬

Assignment of Ac¬
counts Receivable -Legislation of
the Committee on State Legisla¬
Dale

Railroad,

committee

government-owned

construction

Aircraft

chairman

chairman

as

executive

R.F.C. also

the Rank

"Eagle

Legis¬

lation, and Chairman of the Sub¬

tion.

of

Governors

Investing Corp., is

a

White Motor Co. has purchased

•

value).

controlling interest

a

interests

terests,

Cleveland Trust, a member
on

convert¬

Corp. and Chesa¬

September, with

Sta¬

^

com¬

"share

a

par

£ Young,

Ohio

&

Pathe

can

The Elyria bonds, amounting to
were taken by an ac¬
count headed by Stranahan, Har¬

Co., Inc., Toledo,: and in¬
cluding Ryan, Sutherland & Co,,
and .Roose & Co., The
group paid
a price of 100.634 for the
$1,175,000
water
works
improvements
as
1V4S, and 100.291 for the $150,000

R.

tributing

Federal

on

pre¬

member

new

of

director.

Rank, British movie magnate,
.will operate a world-wide dis¬

on

Revised

;

-

.

$1,325,000,

tax

-

appointed

City,

tutes of the Committee

land.

issue matures

peake

Vice-Presi¬

Beam,

National

of

Section

&

Robert

was

of

($5

common

Young

Chairman

on

common

Commission.
Francis

extremely favorable
terms to borrowers, the outstand¬
ing items were those presented by
the cities of Elyria and East Cleve¬

limited

Pathe

in

into

'

Pathe

(par value $5
pereach share of Com¬

and

into T/45th

ible

of

share of Pathe

a

stock

monwealth

1

share

(par value $100 a.share),

mon

Bank¬

t'

the

William
R.
provided in the
?

convertible

■

a

.

and .275 of

President

1

continue

Cleveland

was

also holds

>

; will

ferred

of

for

who also

and

years

participated in the com¬
pany's postwar production plans,
succeeds Joseph E. Rogers, who

Commonwealth

as

Addressograph

of

a

National City Bank, named to
the Postwar Small Business Credit

dent

to

Secretary

share),

Congdon,

of

agreement of merger, each share
of Commonwealth Securities pre¬

of

Among recent new issue offer¬
ings, all
of
which
have
been

notice

a

of Alleghany

B.

board

has

ferred

made

of

Com¬

V. D.

3/lOths

,

Graduate School

ing.
; aidney

improvement

in the price level of municipals
generally and gives every indica¬
tion of making additional gains.

awarded

the

of

same

of

number

Daley said that

.Loring L. Gelbach, President of
Central
National
Bank,
made
Chairman of the Board of Regents

months

the

Securities, Inc., and
Anderson Co., both of Cleve¬

In

:

ago,'
In

proposal to split the stock

a

monwealth

holders,

Chairman of the Economic Policy

being

at

stockholders

approved merger- of the
companies with Pathe Indus¬
tries, ,>v\ .■
iv

Among the appointments were:
"r Brigadier General Leonard P.
Ayres, Executive Vice - President

Jl-.-

on

Board

.

month at Chicago. Merrill also
is president of Western Reserve

land, had

:

with

vote

two

CLEVELAND, OHIO—Frank C;
Rathje, President of the Ameri¬
can Bankers Association, has ap¬
pointed six prominent Cleveland
bankers to the working organiza¬
tion of the Association.. .1 >v; i ;»t i

Co., Cincinnati, shows

the

Ohio

reported

was
that

time

present

The record, according:

White

[It

~~

Six Cleveland Men

standing: of the market eaHy in

September

"

7 to

the

the Investment Bankers Associi-

10-for-1.

,

®

The point is perhaps best illustrated in

for Jan.

common

Cleveland, is the
of

!. Pathe Industries, Inc., which announced last week that it had
eiitered into an Anglo-American reciprocal agreement for the dis¬
tribution of a number of outstanding British and American films
throughout the world, has called a special meeting of the holders

than regained

more

Ohio Brevities

l

BROADWAY

Stock
CV

•

^

Exchange

594

NEW

YORK «

j;

financia£

the commercial &

142

Thursday, December 27, 1945

chronicle

T

its obligatory require¬
ments by a substantial margin un¬
der virtually any foreseeable con¬
ditions. In addition, with its strong
covering

financial

Very High Frequency Space

favorable

and

status

earnings prospects, it is expected

of reducing debt
will be continued.
With the obvious improvement
in the road's credit standing and
the substantial reduction there has
been in interest charges in recent

lent

as

formerly

in the credit standing of roads

during the war years

tharacterized

the highest

marginal. ?:Not too many years ago even

of the Development ,&■ General (junior) Mortgage
ould be purchased in the 20s.
Even as recently as last year the
ighest coupon series was available at a discount from par. Now the
ompany is not able to buy them *
——
t wide premiums over par. Some
time ago the company offered to
purchase up to $5,000,000 of the
series

oupori

6V2S

Direct Private Wires to:

'

fci CHICAGO §tg'
LOS ANGELES

i

6s

and

•

.

-

tended to Dec. 24.

that

the

even

Securities
with markets in these cities

Ernst&Co.
r

•'

MEMBERS

New

York

Stock

Exchange

and

other

leading Security and Commodity Exchs.

231

Broadway, New York5,N.Y.
So. LaSalle St., Chicago 4, 111.

TRADING MARKETS

—

brought in few, if any,
•

-

Telephone

YORK

v

larly the common, have

been at¬

buying.
from

the

in

and

The common has reacted
earlier 1945 high of 60

recent

markets has

been

selling to afford a return of better
on the 1945 dividend rate

than 5%
of

$3

this

Naturally, earnings
being distorted by
extraordinary items as ac¬
share.

a

are

year

such

sults will show

the

amount

of

market

railroad

bonds

consideration

has

that it

share

the

on

commoni"vTnfl944
earned close to $15

ties in

intelligent estimates for

make any

current

less concentrated

will

that

considering any bonds

have

may

retired

been

through the purchase offer, fixed
charges
have been reduced
to
around $12,100,000.
This repre¬
a

cut of

27% from the

some

supported ten years ago.
Ever since 1932 the road's annual

have

earnings

considered
should

now

have

pretty well
It is generally

run

above that figure.

that the company

little

difficulty

in

effect

industry generally of
pending strikes.

on

and

There will also be the question of

extent of wage increases for

the

rail labor and to what extent such
increases will be retroactive. That

will

there

be

increase

some

open to question.
There
naturally be a' lag between

increases and any possible
compensating upward adjustment
of railroad freight rates.
Finally,
there will be the question of the
possible influence on near term
earnings of tax carry-backs.

wage

•While
term

intermediate

and

near

earnings for specific periods
wide distortions

will be subject to

by

outside

to

estimate

factors,

it is possible

what the basic

of

distortions.

Over

from

Specialists in

the' above

"when

industrial

the

;

at

all

Interferences and Is Better Adapted to

Members New York Stock Exchange

■

I" We at Bendix realize that the acceptance of railroad radio wilt

whether its use will result in worth-*
'■
have had a leading part in the de-'
&s
ill

depend in the final analysis upon
while

'

"

econ-

ations.'

velopment of this new, system, to-*
gether with forward-looking rail-*
roads such as the Burlington, the

After

MivyHassel-

Sante

talk

(See

"Chron¬

icle"

of

Without

Dec.

: can

eneesi between

ent

be

ort

ductive

economies
be

very

far-reaching,
he has

or

experience is
still too lim-

P.

B.

Tanner

permit foreseeing further
which may develop
the general use of radio by

to

economies
from

railroads,
As most

'

.

today, the in¬
carrier system, and very

munication in

use

^

25 Broad Street
r

t

This is

in operation in

continue

a

amount

of

new

equipment with a consequent sav¬
ing in operating costs. Substantial
sums have also been spent on ad¬
and

betterments

the

to

properties with consequent econ¬
Interest costs have been
shaved as outlined above.
Both
from the standpoint of traffic potentialities and the standpoint of
costs
and charges ahead of the

.New York 4, N.Y.

Telephone BOwling Green 9-6400
Teletype NY 1-1063
.r'v'/

pflugfelder, bampt0n & rust
Delaware, Lackawanna
& Western R. R.

;

Members

t'r

61

i

New

Stock

York

Exchange

Broadway

.

Telephone—DIgby 4-4933

:

v

:

!

^

"■ v('•

..ryP

New York 6

Bell Teletype—NY 1-310

'

V;

frequencies employed in the
carrier - system, - the
waves
tend to follow the tele¬
inductive

phone

or

-

they

which

»

1st

Income 4s,

1993

: BATES MANUFACTURING

UNITED

Tt is immediately apparent

Wall Street,

Members New

PUBLIC SERVICE, Com.

of-way,

curves

as

or

BOwling Green 9-8120
Boston

New^York 5
Tele. NY 1-724

Philadelphia

Hartford




York] Stock Exchange

BOND BROKERAGE

co.

Member of National Association

of Securities Dealers, Inc.

TEL.
52 wall

street

HAnover 2-9072

n. y.

SERVICE

Specializing in Railroad Securities

c.

.

NEW YORK 5

ONE WALL STREET

1. h. rothchild &

TELETYPE NY

HANOVER 2-1355

1-2155

5

Tele. NY 1-1293

that

dependence upon wayside
constitutes a serious draw¬
back to the use of the inductive
carrier system 4n many phases of
railroad operations. For example*
in metropolitan areas, where wires
are often carried underground, or
oh
industrial sidings where no
wires exist, the inductive system
cannot
provide / communication, v
Likewise on the main line, when
the wires do not follow the rightwires

v

UNITED PUBLIC UTILITIES, Com.

63

.

in the case of wide y-:
through deep cuts, the
inductive carrier system is again,
In the same
equities, theri, Southern is well at a disadvantage.
situated.
Unless all present ideas
wjay, when < storms prostrate the
as
to the general national econ¬
wire lines, inductive communica¬
omy over the next few years prove
to
be ridiculously
overly ; opti¬ tion is often impaired, right at a
mistic Southern should have little
.-! >:'An address by Mr. Tanner be¬
difficulty in keeping earnings at,
or
above,' the $7 estimated for fore the Railroad Section of the
1945. Obviously, This affords ade¬ New York Association of Security
Analysts, Dec.,7, 1945. .
quate, protection * to ' the recent
l
(Continued on page 3155) _ ;
'dividend rate.
•

CO(~

Adams & Peck

;

this

Mclaughlin, baird & reuss

Mtge. Series B

1

are

Lackawanna Railroad
of N. J. Division

.

space
radio, the
broadcast in all direc*
tions, and can be received anywhere within the range of the
transmitter, just as in the case of your automobile radio.
;

VHF

With

waves

,

v

At the

which carry the messages.

factor.

a

sion, years
a
considerable

Railroad Bonds and Stocks

the two

propagation of -the electric waves

50 yards or so.

ditions

•

J

difference in
systems is the method of v

outstanding

>The

high frequency
aviation has led
to the development of the VHF
space
radio system for railroad
use.
Bendix Radio is proud to
in military

Since the depres¬
Southern has installed

STOCKS-BONDS

INCORPORATED

appreciate that the characteristics
of these two frequencies are quite £

telegraph wires over $
are transmitted, and
can be received satisfactorily only
when the train is within a short v
distance of these wires—say up to

peace economy.

WWU
RAILROAD

operates

general acceptance has been de¬
layed due to the technical limita¬
tions of the early equipments.
In
the meantime, in the past year and
and a half to be exact, the success

omies';

GUARANTEED

frequency space
ori fre¬
between 158 and 162
high

system

low

ably

Telephone REctor 2-7340 1

lowy

high frequency space radio. The
inductive carrier system has been
used for a period of years but its

Many plants estab¬
lished for war uses will presum¬

Times

use

different.

•

probably know,
forms of train com¬

expansion of the South.

'I "

systems

quencies
megacycles, or wave-lengths of,
only about two meters.
You can

of you

there are two

ductive

carrier

,

very

radio

intimated, our

ited

systems

two

frequencies, generally in the
neighborhood of 100 kilocycles,
that is,, with wave-lengths in the
order of 3,000 meters.
The VHF

but that these

as

the

principally from the differ¬
frequencies or wave-lengths 1
which they, operate.
The in-*

in

question
your minds

and

•

deeply into

too

stem

any

will

going

technical discussion, the differ-*

a

20, page 3016.

there

Fe, the Baltimore and Ohio
,*>,>■
B W* I

and several others.

—Editor), ' I
don't" think

still

j

a

j" Warning" Purpose. The VHF Radio Is Also Free From AtmosJ pheric Noises and Man-Made Static and Is Light and Portable and
Involves Less Operational Problems as Well as Being Lower in Cost

losses

contracts.

120 BROADWAY, NEW YORK 5, N. Y.

SECURITIES
Selected Situations

Inductive Carrier System by Means of Wayside Wires.

the Advantage of Less

;

radio

SUTRO BROS. & CO.

RAILROAD

an

Holds That Although the Range of the VHF Radio Is Short It Has

obtained with very

Corporation

issued"

ex

period
benefited

a

Southern has

years

traffic-wise

We will discount profits and assume

in

earn¬

ing power of the road may be
the

Seaboard Air Line R. jR. Co.

NY 1-1499

is

hardly

General Public Utilities

5

Require
:

bacher's

are too many uncertain^
the immediate picture', to

jThe're

After-liquidating temporary loans
contracted during the depression
(to a large extent to meet prin¬
cipal maturities) the management
turned its attention to the high
coupon series (6% and 6^2%) of
the junior mortgage and more or

result of the debt program,

(VHF Space Radio Broadcasts Waves in All Directions and Does Not

omies in daily

share.

a

Today and Points Out That the Underlying Differences
Frequencies.
Points Out That the

Between Them Is in the Wave

railroad oper¬

earnings for a specific period 'such
as 1946.
A lot will depend on the

a

tion in Use

better than $7,-a

Southern management was one of
the first to embark on an aggres¬
sive
debt
retirement
program.

As

Mr. Tanner Describes the Two Forms of Radio Train Communica¬

is expected that final: re¬

the company

un¬

there, where the
greatest interest saving was prom-,
ised, up to'the present.
■

Manager, Radio Sales Dept., Bendix Radio Corporation

tracting a considerable amount of
speculative and semi-investment

in

^

/

particu¬

celerated amortization but even at

Teletype

.

HA 2-6622

the equities,- and

condi¬
tions and the steady contraction
money

STREETUXX

WALL

72

NEW

-

,'

,

burden

Van Tuyl & Abbe
>v';;-:T

the

bonds.

sents

Magazine Repeating Razor Co.
Universal Match Corp.
|
Berkshire Fine Spinning pfd.
Missouri Pac. RR. Serial 5V4S
Tappan Stove Co.
:
Skilsaw, Inc.

j

of

time limit

and without
120

It is indicated

extension

doubtedly been the change in the
status of
the
road
itself.; The

Listed and Unlisted

•'

re¬

cold

a

important
on

118,

outstanding may be cited as con¬
tributory factors to the present
market appraisal,
but the most

BIRMINGHAM

Orders Solicited

and

This offer met with
reception that when
it expired on Nov. 30 it was ex¬
spectively.

such

General

and

123

at

and charges

years,

+

By P. B. TANNER*

that the program

well typifies the progressive improve-

Southern Railway pretty

Philadelphia

Jelephone

—

Lombard 9008

Volume

162

the

under

arrangements

contem¬

(iii) hereof.

plated in Article 7

Article 5.

j

j

Contracting

The., two

Govern¬
cooperate'with a view
to assisting each- other, in keeping
capital
transactions
within Ithe
scope of their respective policies,
and in' particular with a view: to
preventing transfers ; b e t w e e n
ments shall

Treaty Follows Same Pattern

.

as

Those With Members of Sterling*"1

Bloc, and Restricts Payments of Sterling Balances Outside the Sterr

'ling Area. Fixes Exchange Rate of 20yo Czechoslovak Crowns to £.*
■■/■if

The "Chronicle" has received

the official.text of the Monetary

their

Agreement between the Government of the United Kingdom of Great
Britain

the

and^>-—

Northern Ireland

and

Government

the

of

Czecho-

*

the

sterling

follows the lines of similar agree¬

permitted to iriake to
residents of Czechoslovakia—i
area,

tional

against sterling to be cred¬
the Na¬
Bank of Czechoslovakia's

nature

No:

Account

made»with

important

an

nation,
not - a
member of -the
Sterling Bloc. Under the terms of
Article

7-of the

Agreement,-both
to trenew^ the
.terms, if either of the contracting
parties adhere to a general -inter¬
national,.
monetary-'' agreement.
countries

Since

contract

both-

Czechoslovakia
Bre1 ton

Britain

Great

the

ratified

have

Woods

and

Agreements,

amendments to the Treaty may be

required.
/ The

-

full

'x47'4:.

;

following constitutes the
of the agreement:
41"; 4;

text

Monetary Agreement between the

Government of the United King-

»;

dom

:

of

Britain-

Great

Northern Ireland
_

of

ernment

the

and

and
Gov-

Czechoslovak

the

(a)

The

Government

owned by.

vakia

Kingdom

Great

of

Britain

No. .1, Account

with the Brink of

England amounts

1 million plus the

£

to

(a)

shall

vakia

Northern Ireland, of the one part,
and
the'
Government
of;: the

balances

Czechoslovak

amounts

•other

Republic, -of
have agreedvas

part,

lows:

Article 1.

tween

crown

£

sterling
shall
Kcs.201.5(k=£l.
.
•
!-i(ii) This rate (hereinafter

-

.

ferred
shall

to

"the

as

not

be

official

varied

by

be

-

rate")

of

this

Article

territories

-

where

ported.
V (i)

of the official rate as the basis

have

a re¬

lationship between the • two cur¬
rencies.^
\;
" ? .//*
(iv) The Bank of-England .and
v

the

National. Bank

vakia,

of

Czechoslo¬

agents -of 4heir respec¬

as

tive. Governments,/
.mutual

spread above

or

which, will be

rate

the

shall fix ;.;by
the maximum
below the official

agreement

markets

authorized

which

they

on

control.

Article • 2.' x'VX;

(i) The Bank of England (act¬
ing as agents of the United King¬
dom Government) shall sell ster¬
ling t.o the
National
Bank' of

V

-

'Czechoslovakia

(acting

as

to

-

i

be

may

41
•
Artiole 3.

•

,

in

ex¬

j

.

the

Bank of Czecho¬

National

slovakia, against all or .parti of
the sterling balances held by that
Bank,- either -C z e c h o s 1 o.v a k
crowns at the official rate, or gold
to be set aside at the Bank of
^

_

Eirigland'in"London.;
:

i (ii)

The 4 NatioriaV

-

Czechoslovakia

right

at

Bank

any

of

of

*; shall

time

.

sell to

to

balances held by

at

gold

be

/x

Bank] Of
have';* the

England;1 against
the Czechoslovak

sterling

'

f

•*

,

the

Prague.
/

•

aside

set

(i)

The

4.

Government

of

the

the

the availability of sterling at the

there

in

make

to

force, are permitted to
residents of the sterling

area—

credited

to

be

to

the

Bank

.Account

at the

of

with

crowns
official rate

England's

the

National

No.

1

Bank

«of

Czechoslovakia, provided that
the balance standing to the credit

of that Account is not thereby in¬
creased

above

a.

Kcs.200 million:

(b)
th'e

if the

credit

land's

of

No.

maximum

t

or

balance standing
the

1

Bank

Account

National

Bank

amounts

to

of

of
<

to

of

Eng¬
with- the

Czechoslovakia

Kcs.200

million,
against gold to be set aside in the
Bank of
England's name at the
National Bank of Czechoslovakia,
Prague.

(ii)

'

The

National

Czechoslovakia

(acting

Bank
as

Bank

of

(a) transfers to other residents
Czechoslovakia; ; >
,

(b)
the

payments

sterling

(c)

to

area;

transfers

countries
and the

or

to

outside

sterling

residents

\/Y

of

4:

residents

of

Czechoslovakia

area

to the extent

with!

view

a

the

present

that

in

force

I '

Agree¬
Con¬

the

Czecho¬

tain contaict

all technical ques¬

on

authorized

by the Government of the United

Kingdom under the arrangements
contemplated in Article. 7
(iii)
hereof.

.;v.,;

\

(ii) The Czechoslovak Govern¬
ment

shall

not

avail¬

restrict the

ability of Czechoslovak crowns at
the
disposal of, residents of the
sterling area for making—

(a) transfers ;to other residents
(b)

sterling area;
payments

Czechoslovakia;
(c)

transfers

to

arising out of the Agreement
collaborate bclosely on
exchange "Control matters. affect¬
ing .the. two areas.
*
will

(iii) As opportunity offers, the
Governments
shall
.

seek with the consent of the other

interested parties—

!'•-

'

(a)

to

of the
the

at

make4'Czechoslovak

.

at the

crowns

disposal of residents

sterling area and, sterling
disposal of residents S of

-

Czechoslovakia available for pay¬
a current nature to resi¬

ments of

4 of

dents

sterling

countries

outside

the

■

and Czechoslovakia;

area

4 •"*

' C
" ! .
44 (b) to enable residents of coun¬
tries outside-'the sterling area arid
;.

Czechoslovakia

to

sterling jat

use

their; disposal to make payments
ofxa lcurCent nature to residents

of.

Czechoslovakia,

Czechoslovak

to

countries outside the
and

.

to which these may

of

>

residents of
sterling area

Czechoslovkaia to

.•

-

-

London, in duplicate
day of November; 1945..

1st

Northern Ireland.
>

•For

Governriient

4he

:

and 4 to

use

at their dis¬

crowns

the extent

be authorized
by the Czechoslovak Government

11.

Dec.

Stephens,

a

deputy commis¬
indicated

sioner

in

the

theater

since,

Oct.

1,

succeeds

late

the
of

Carroll

A.

who was killed in

" the

of

Boston

automobile

an

accident in France Oct. 16. Over¬
seas with the Red Cross for three

•

Czechoslovak Republic ^

an¬

Mr.

t

was

by

Frederick

(L.S.) ERNEST BEVIN.

was

Chairman,

-

reappointed chair¬
President
Truman on

O'Connor
man

Mr.

Great Britain and

Europe

Dec. 4 by Basil O'Con¬

on

National

^

■

(L.S.) Dr. RUDOLF KURAZ.

years,

Mr. Stephens was regional
Italy previ¬

director for Northern

R, H. Johnson & Co.

to his transfer to the Western

ous

His work with;
the 5th Army 'was recognized by
European theater.

A

support of

Stephens went to England as of-'
manager for
the American,

was made

fice

Dec. 26 by a group of underwrit¬
ers* headed
by R. II. Johnson &

Co., at $ 15.50

per

financial

statement,

later

assigned

nean

theater

outstanding/

Proceeds
be

from

/

the

dated

-

4

4

latest

ation-hospitals,
pervisor

evacu-4
regional su-^

was

and

Oran,

at

'

by. the company to
providd funds for standardization
of

equipment, procurement of in¬
strument flight facilities, enlarge¬
ment of general operations, and
a

bank loan.

then.

co¬

ordinated Red Cross services with
the 5th Army.

Before

;

age

•

Red

the

joining

Mr. Stephens was

'sale

used

retirement of

helped

he

where

,

will

Mediterra-:

the

to

plan Red Cross service to

July 31, showed a total of 410,387
shares'."issued,
of which 30,200
shares
were
held
by " the com¬
pany's" treasury. As of Oct. 31
there
were
* 22,001
additional
shares

arid was;

Red Cross London office

share. The shares
represent an additional offering
out of an original authorized issue
of 1,000,000 shares. The company's
latest

in;

combat operations from;

January, 1943, to October, 1944, in|
North
Africa
and
Italy."
Mr.?

public offering of 125,000 ad¬
($l-par) common shares

Airlines, Inc.,

Star-

Bronze

Medal "Vfor meritorious services

ditional

of Alaska

the

of

award

the

.

Cross,

in the broker¬

business, associated with the

firm of Gude Winmill & Company
on
•

the New York Curb

Exchange*

Chairman

In; reappointing

Presi dent Truman

O'Connor,

.

Alaska Airlines, Inc., was

incorr
porated under : the laws df the
Territory of, Alaska on Nov. 27,
1937, as successor to Star Air

named five members for the Red
Cross

Central

these,

Committee;

"Times"

in

advices from Washington Dec.

11;

said

the

New

York

whicK -originally
was
were
the Secretary of the Treas?
in 1933. Carryirtg passen¬
property and mail on regu¬ ury, Fred M.~Vinson, succeeding
lar'and irregular schedules, the Danel Wr Bell, Under-Secretary?
Service

formed
gers,

air

line operates over more than
6,000 miles of route mileage. - H
"

Other members of the

offering

A.

William

Clayton,

of

Secretary

General;

A.'.M. Kidder "& Co.;
Bond & Goodwin; Inc.; Coburn i&
Middlebrook; "Foster & Marshall;
Van Alstyne, Noel & Co.; Courts
Company; JV C. Bradford & Co.,

Attorney

and Reinholdt & Gardner.

of the Army.

group

are

.'!;

Ross

eral

T.

State;

Assistant

Tom

Clark,

Vice Admiral

Maclntire, Surgeon Gen¬

of the

Norman T.

Navy, and Maj. Gen.

Kirk, Surgeon General

1

posal to Irriake payments of a cur¬
rents nature

sterling
of

residents

to

area.

'

*

*

t"

1

of

the

-1

(iv).; Notwithstandingthat each
the.,: Contracting Governments

shall

be

/NOTICE OF REDEMPTION

alone

responsible for its
relations
with
third

-

maintain

to the

terests of the other.

■

.

NORTHERN PACIFIC

|

REFUNDING

to

.

time

by the. exchange

assigned to it
regula¬

control

tions in force in the United King¬

dom;
(ii)

J

transactions between; the
Bank of England and the National
Bank of Czechoslovakia

considered
tween

are

to be

transactions ; be¬

as

the

sterling
area
and
Czechoslovakia;
f
(iii) transactions entered Unto
by the Government of any terri¬
tory within the sterling area or
by the^Czechoslovak Government
are

be

to

tions

considered

entered

of that

area

into

respectively,/.
4

•

-

as

transac¬

a

residept

by

of Czechoslovakia

or

SERIES

.

RAILWAY. COMPANY

IMPROVEMENT MORTGAGE

B,

DUE JULY

6% BONDS,

1, 2047

.

.

time

AND

'

For the purposes of the present
Agreement—,
• X:
lb
(,i) the expression "the sterling
area"shall
have
the ' meaning

from

holders<of

con.-,

tact wherever the monetary rela¬
tions of the one affect the in¬

/ T

NOTICE IS HEREBY GIVEN that Northern Pacific Railway

Company has elects ;

off on January 1,1946, all of the above-mentioned Refunding and Improve¬
6% Bonds, Series B, at 110% of their principal amount, together with accrued
interest on such principal amount to said date, in accordance with the terms of said bonds and
the provisions of Article Ten of the Refunding and Improvement Mortgage, dated July 1,1914,
from Northern Pacific Railway Company to Guaranty Trust Ccimpany of New York and
William S. Tod, Trustees, and that on January 1, 1946, there will become and be due and
payable upon each of said bonds at the office of J. P. Morgan & Co. Incorporated, in the
Borough of Manhattan in The City of New York, N. Y., the principal thereof, together with
a premium of 10% of such principal amount, and accrued interest on such principal amount*
to said date. From and after January 1, 1946, interest on said bonds will cease to accrue and
any coupon for interest appertaining to any such bond and maturing after said date wili
to redeem and pay

ment Mortgage

become and be null and void.

'

4

.

Coupon bonds should be presented and surrendered for payment and redemption aa
July 1,1946, and thereafter attached. Coupons due January

aforesaid with all coupons payable

1,1946,

may

be detached and presented for payment in the

usual manner. Interest due January

1, 1946, on fully registered bonds will be payable only upon surrender of such bonds for re¬
demption. Registered bonds, in cases where payment to anyone other than the registered owner
is desired, must be accompanied by proper instruments of assignment and transfer.
;

\

.4 4'X;

NORTHERN PACIFIC

RAILWAt.COM.PANr.
I": ".

By

A. M. Gottschald,

J

New York, N. Y„ September 26, 1945

Secretary

<

Article 9.

;4:

"

The

present Agreement, which
shall be subject to review and ad¬

justment

residents

or

affixed

have

in

Kingdom of

tions

and

■

to which these may be

of the

England (acting as
agents of the United Kingdom
Government)! as may be .required
for payments which residents of




of

of

agents

of the Czechoslovak Government)
shall sell Czechoslovak crowns to
the

disposal of residents of Czechoslo¬
vakia for -making— -

;

(a) against Czechoslovak

Done

Article 8.

United Kingdom shall, not restrict

-under

While

•*V,:?■

■■■>
Article

and

their seals.

gendral

a

any amendments
be required.
' t

monetary

which residents of

Czechoslovakia,
exchange regulations

Agreeirient

parties, they shall

at the Na¬
tional Bank of Czechoslovakia in

to

agents

be required for payments

may

the

crown

of the Czechoslovak Government)
as

the

all] or

that Bank, either
official rate or

the

thereto

nor,

Western

nounced

;

'

making
(ii)

and •'

4'f

The Bank of England shall
the right at .any lime to sell

part

,4

-

and

and

'l'" Offer Alaska Airlines
currency! of
Common Shares
Contracting
*'

slovakia,, as ^agents of their re¬
spective: Governments, will main¬

between

Czechoslovakia's

of

Bank

disposal

jurisdiction the s Con¬
tracting Parties shall enforce the

/of all transactions involving

,

bri at the/Na¬

shall

the

by

and the National Bank of

Loridojn in
thermovisions of

accordance with

Appointment
of
William- A.
Stephens as American Red Cross
Commissioner for Great Britain,

invested

agreed

adhere to

ment' remains

de¬

•

arid

tracting Governments shall coop¬
erate to apply it with the neces¬
sary flexibility according to cir¬
cumstances. The Bank of England

disposal and
' :
h --' r.}-

(v) Gold set aside

tional

all

b.

in Prague
provisions

set aside

England's free
may be exportedV*'

free

(iii)
In
thsy have

Gold

of

the Contracting Governments ex¬
i

be

be

during
Agreement

may

of this Article shall be at the Bank

cept after mutual consultation.

use

by .agreement

in accordance with the

re¬

either

shall

,

Stephens and O'Connor

whereof, the under¬
signed, being duly authorized by
their
respective
Governments,
have signed1 the present Agree¬
ment

.

after the date of its

witness

In

Bank

*4;':/•'VC; Contracting

(iv)

be¬

to

.

;V.4'

exchange

Czechoslovak

the

the

of

each

which

of

termined

,

The-rate

'arid

with

counts

them.

■

(i)

the
fol¬

held

may

present

No. 1 Ac¬
other, ; * the

their

only

by ;the

Red Cross Names

terminate

wise.

Na¬

invested

of

date

the

shall

coming into force, unless the Con¬
tracting Governments agree other¬

this

the

after

It

JTorthe Government of the United

international monetary agreement,
they will review the terms of the

maintainminimum

:

upon

be

Governments

of Czechoslo¬

National Bank

and

agreed

If

this

the

of England, London.
; '
(iii) / The Bank, of; England'and

the

as'

(i)

4

set

at

Czechoslovakia

held

be

years

•

by

-

three

Czechoslovakia

Article 7.

aside in the name of the National
of

of

notice;

National Bank of Czechoslovakia:

additional

against gold to be

above

V*

months

such

or

England and any Czechoslovak
held by the bank of Eng¬

•only

referred to in sub-paragraph

sum

be

land" shall

residents of Czechoslo¬
date on. which this

Czechoslovakia's

Bank

three

crowns

the

at

{

6^^?;

sterling held

may

of

Bankj of

the credit of the National Bank of

i:

and

as

Agreement enters.into force; or ;
; (b)
if the balance standing; to

1945.

of the.United

shall

.

Bank

London, 1st November,

Any
tional

England, provided that the bal¬
ance standing to the credit of that
Account is not thereby increased
above a maximum of £1 million
plus such additional sum as the
Contracting
Governments
"shall
have agreed to recognize as equiv¬
alent to "the net- amount of sterling

Bank

Republic.

with; the

serve

J

ited at the official rate to
1

not

economic

Article

,r

•;

do

useful

commercial purposes.

are

other countries,, but is distinctive
in that it is the first treaty of this

by Great Britain with

and

jex-

change regulations in force in that

Republic,, signed in Lon¬
don, Nov. 1, 1945. This document

which

areas

direct

r~1—

the

under

area,

slovak

ments made

3143

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4450

>.

after

tion, shall
5th

mutual

come

consulta¬

into force

on

November, 1945. At any time
Contracting Gov¬

thereafter either
ernment

may

give

notice

to

the

other of its intention to terminate
the

Agreement,

ment

shall

cease

and
to

the
have

OFFER

OF PREPAYMENT

the

Agree¬
effect

desiring to receive immediate payment of the full redemption price including
interest to January 1, 1946, may do so upon presentation and surrender of said bonds at the
office of J. P. Morgan & Co. Incorporated, in the Borough of Manhattan in The City of New,
York, with the January 1, 1946, and subsequent coupons attached.
s
Holders

.

....

..

^■■ :

,

agreement with the .12.6%
for total .earning assets of the; 15,
leading ; banks
represented
in
close

/

? This Week

,

however, between member banks
and the 15 bainks in their respec¬

Bank Stocks

—

As

draw to the

we

trend of significant

•Wall Street banks*:—
'

Date—

'*■

V.-:'

;^• V> ;;

^

y

'

y-

-r

Governments

Deposits

j

Loans &

Total Earning

Discounts

Assets

19,578

4,674

21,228

4,816

20,095

4,326

$4,523

$19,893

$4,694

$5,416

$4,678

G-30-44
9-30-44

22,542

14,273

$4,075
4,419
5,128
4,468

$22,741
$25,155

$14,088

Quarterly

average

(1944).

12-30-44
3-31-45___

-

Quarterly

average

15,195

4,608

15,967

6,629
5,534

23,990

4,541

22,034

4,664

*

being

$15,472
+ 9.8.% ;

+9.9%

+

In

the face

hard

earning '*>

is-very evident that

stantially higher throughout 1945

1944. Based on quar¬
deposits and hold¬
ings
of
Government
securities
have averaged nearly 10% above
last year, while
loans and dis¬
than during

figures,

terly

higher
12.6%.

„

and total earning assets,
Cash, on the other hand,

has averaged

1.6% lower.

ment's

loan

war

•'•••,.

;

and Government holdings
apparent. For example, as
of the Sixth War Loan
between Nov. 20 and Dec. 16, 1944,

posits

is very
a

there

Drives

occurs

/•"

v/:,;.'

"•

TABLE II '■ '
'
:
CommercialrGoVernments - '
Loans
-

\

Dates—

.

responding.
Consider this
comparison:
;r//.]///■
is

....

12-29-43_;-_--Li--_--_-.-^
6-28-44

1

9-27-44__

.

"•.'/ 2,465
■
2,337
' "
* 2,290

13,366•. i

—

*. 13,957

1_

14,083

(1944):.\-$13;410" t

12r27-44____„„__^.,.^l—* $15,060)
6-27-45

:

i:

-Quarterly

-

:: '

..

19.577

"

,

$21,724

20,524

t 6,247

22,824

•:.„' $2,338

v

.; 5,361

.21,434

$5,398

1 $21,626
+

+ 20.6%

—1.7%.;;

j

■

19,007
20,061

$19,215

...(.1945P-/- fcl5;078? f
,

$18,214
-

/'t 4,446 : ••
y ; 4,971,
4,300 ; .-

-4,463

2,301

■

Dec. 31,

franc, which since the liberation, has been pegged at 50 to the
will take effect tomorrow [Dec. 261 with
publication of the decree in the*"
are
French West Africa, French
official Government Journal."
dollar and 200 to the pound,

The

sembly

12.5%;

_

/v'/!

: >

^

in

Bought—Sold—Quoted

1

-

/ /;' *.

■

■.

..♦•; ■//;j

and.

1

Vr>*u. v*op>. F+nhttnge

other leading exchanges

WALL ST.
-

the

•

weekly figures of /New York

banks,7/as reported; by

"member

'

r

Reserve

the'Federal

NEW YORK S

in

reduced

The

decision

a

four-hour

at

to

cut

taken

was

the

It

known that the Govern¬

wanted

before

money

stabilize

to-

ratification

its

of

the

Woods

Bretton

monetary agree¬
ment, scheduled for debate in the

constituent assembly tomorrow.

French
the

financial

two-cent

franc
the

of

the

artificial and prevented
from
"selling any¬

was

French

thing in the United
England."
how

to

said

experts

valuation

the

They

devaluation

French

Some held

inflation;
would

others
stimulate

so

pressing

this and

it

production of

goods that living costs would fall.
of

Because

the

devaluation,

Government ordered
Stock

Exchanges

tomorrow.

,

the

appreciation for keeping
other interested govern¬
ments informed,1 Secretary Vin¬
son, the Associated Press'added,
told Mr. Pleven he had followed
"with
sympathetic interest the
efforts of France to cope with her
difficult economic problem? "

that French

remain

■:'> '•■ ";V

5

the foreign

might affect
increase

that "it has

generally recognized that
exchange value of the
was; out
of line."
Ex¬

been

franc

maintained

program

added

Vinson

tary

an

was

French

the

in

as

economy.

closed

"'••

'

">The present; devaluation is the

•

nine years.

in

time

John Perkins to Be
R. L
I

Day Partner

the. value of the paper franc
steadily .from ..ap¬

for

Board,

proximately. five gold centimes
C0.049 gold francs) to the present
rate of. slightly more than half, a

plan,' according to the Associated
from

Press
up

four

to

partner in

Perkins will become a

of the New

FIRE INSURANCE

NEW JERSEY

~~"

Washington, calls for
of intensive,

months

•

have

assembly's

meeting tomorrow to
the Bret-

consider ratification of
ton rWoods

3rd.:WMr;;iPerkins has been
for some time in the

Jan.

with the firm

Trading

01d U. )S.
For China

Warships
Urged

Secretary

that

through

deem proper,:ac¬

might

he

that

Speaker

Associated Press Wash¬

cording to

Agreement..
*' '« [ „.?■
ington .; advices..
announced
French stated that the

The i: Government

•

consent:

parental

colonies would be changed.. Those

whose, local

territories

overseas

will have the same dol¬
pound value as the metro¬

currency

lar and

eral

optional

the

remainder

politan franc are Algiers, Tunisia;
French Morocco, the French West

of

ways

completing

their

of

the

year

of

or

;;,1'

industry.

and

Indies

armed

forces, National Guard, R. O. T. C.,
college

J. S.

Laird, Bissell & Meeds
Stock

.

Exchange

YORK

Telephone: B A relay

5,

French

Guiana.

j

Those colonies where 100 francs

local

of

currency

be

will

made

170 metropolitan francs

equal to

A.

Rippel & Co.

Established

*

, Mr.
Forrestal
legislation pro¬

conformity with re¬
of ,;y the

posed "is in

recommendations ;

cent

Staff and the State,

Joint Chiefs of

coordinating com¬

War and Navy

mittee/and the Navy
received / advice

has

siderations of

Department
from the

to

18 Clinton St., Newark

74SIM

/

Gibbs, Manager Trading Department)

N.

2, N. J«

Common

MArket 3-3430

Y.

Phone—REctor

Corporation!
Stock

2-4383

the

It appears that

White House.

national interest, as

well as con¬

good conscience, re¬

States give

Republic of China by

the

assisting that nation

Kaiser-Frazer

1891

N.

B*ll Telp+"V—W.

'L.

J

restal; had

aid

Yerk

i

was

quire that the United

New

:

announced
of ,the /Navy Tor-

it

17

Dee.

On

U'yY:y'y::y y

Department.

also that currencies in the

Trainees would then be given sev¬

training —either' in

BANK STOCKS

THE HURDLE

Members

York

Stock Exchanges, on

Boston-

and

Ill Devonshire

Day & Co.,-

R: L.

Street, members

.

who

-

H.

MASS; —John

BOSTON,

^During that

declined

has

•

t«0 BROADWAY. NEW

Dec.

"a change in the

essential step
of eco¬
nomic reconstruction."
In
a
letter
to
Rene Pleven,
French finance minister,
Secre¬
rate

franc

in

would

Press

Treasury

the

of

Secretary

or

domestic

that it

Washington,

Vinson said that

divided

States

were

V

Associated

from

local

metropolitan

•//;/'•

to

According
25,

100

of

rate

a

francs.

accounts

was

ment

of

rest

have

francs, equal to 240

session

Cabinet

,

New Hebrides
French Oceania

Caledonia,

New

the

Sunday.

approximately similar dates. J
./ basic training for all youths be¬
Total
loans, - and
investments tween 18 and
20, and those of 17

Telephone Dlgby 4-2525

CLEARS

St.

and

mander, John Stelle.; The Legion

It is'now of interest to examine
Wt>w

Madagascar,. Reunion . and
Pierre and Miquelon Islands.

land,

will

be

a

French/Somali-

Cameroons,

step toward full scale re¬
sumption of international trade.
as

fifth

Legion Plan for
!
Military Training f g; |

1944, for,

than last.

Memhpra

week

1 aafc

and

value

franc would

C '• •>; /"■;

-

1

forecast

as¬

Africa,' French Congo

Equatorial

written Congress,
Sam v Rayburn,
as was pointed out in
urging; that ;surplus /American
A plan. for universal military
this column two weeks ago,- in¬
dications are that total net .oper¬ training', was * submitted^ to
tlie • gold centime t(0,0064 gold francs). warships or other ; vessels :;be
/The move was taken to align
turned over to China under an
ating profits, based on Bank J of House Military Affairs Committee
France's currency more closely, to
Manhattan's
report, should ap¬ on Dec. 18 by the American Le¬
authorization to the President to
its actual value in comparison! to
proximate 12.5% better this year gion, through its National Com-?
world money on the eve of the make the transfer on any terms

'i

Fire Insurance

I

i

Hartford

*

the constituent

Members of

J

.

from ' Paris

advices

press

given in the N. Y. "Journal of
Commerce" went on to say: ;
^
as

1944, 152.32; Dec. 21, 1945, 189.07; ; The assembly now is consider¬
ing the 1946 budget, which con¬
gain 24.1%. //;
y'y.vj y.y
American' Banker /Indext. Dec. templates a 120,000,000,000 franc
31, 1944, 45.8; Dec.: 21, 1945, 49.8; deficit, estimated on the old eval¬
uation."
y .'*•/'.V ;
|
r
gain 8.7%:1 ; '\v
The nation's international trade
There is an amazing, lag in bank
since liberation has been confined
stock prices which sometime the
to tokens shipments iof
market will undoubtedly rectify. largely
»■-. *Bank
of Manhattan, Bank \ of luxuryv goods—perfume,, cognac
New York, Bankers - Trust, ^ Cen¬ and champagne. . Unable to ful¬
fill her part of a trade agreement
tral
Hanover,.: Chase
National,
with
Sweden, • France
recently
Chemical, Corn Exchange, .First
francs
National: Guaranty Trust,- Irving transferred ;. 400,000,000 .
worth
of
gold
f;o
Sweden,
partially
Trust,: Manufacturers Trusty Na¬
tional City, New York Trust/Pub¬ covering- deliveries France Jia^
been unable to make.
// :
lic
National
and 5 United 'States
l

deposits as the Government's Trust.
deposit accounts are. drawn down;
It is an interesting coincidence
that average aggregate earning
assets of the 15 banks thus far in
1945 should be 12.6% greater than
in.

■i

of the

value

the

•

$4,475

2,241

+12.4%

'f

$5,521

>.

% .change

.

2,346

;

-

.

.

■>

$2,464

'15,481
-14,824

:

average

J.'

$2,378

!

9-26-45_J___lw_--^_w---

.

r,

14,848

<3-28-45_^_^w,—_V.*.—

-

--

-

.

,

"

Quarterly average

''

v/w $4,184

$2,418

$12,234

'

-*

Investments

&

not

Dow Jones Industrials:

Total Loans

f C;,y
All Loans
•

(000,000 omitted)

v

'

rr.'

••/';••

•

U.S.

...

excess

Despite these exceptionally fa¬
vorable factors
in
the banking
situation and outlook, the market

'

-

that »the

:

years.

shrinkage

a

fact

the

profits tax terminates at the close
logical to believe
that bank earnings may continue
to improve during the next few

Loan

Between

banks.

the

by

result

the conclusion that

report the best earn+
that they have en¬

of this year, it is

while Governments rose
from $15,195,000,000 to $15,967,000,000. The effects of the Victory
Loan obviously .will not appear
until
the
1945 year-end
statements-of-condition are published

Govern¬
drives on de¬

it is

record

announced

was

cut

of the

in 1945

with

June 30,

the

of

influence

The

will

this

in many years. /Further¬
more,
with earning assets at an
all-time high and apparently des¬
tined to rise still higher, coupled

$14,273,000,000 to $15,780,000,000.
Similarly, during the Seventh War
Loan (May 14 to June 30, 1945),
deposits rose from $23,717,000,000
on March 31 to $26,514,000,000 on

22.6%

averaged

have

counts

banking

the

joyed

deposits increased from $22,542,000,000 as of Sept. 30 to $25,155,000,000 on Dec. 30, and Govern¬
ment
holdings
expanded from

sub¬

assets of the banks have been

of

to escape

banks

ings
It

-

with those reported for
as follows: Governments,
$15,971,000,000; Commercial Loans,
$2,841,000,000; All Loans, $6,902,000,000; Total Loans and Invest¬
ments, $23,952,000,000.

—1.6%

12.6%

by the French Government on Dec. 25 that it
franc by more than-half, setting It at
119.10669 to the dollar, and 430 to the pound sterling.
The Associ¬
ated Press advices from Paris, reporting this, said the "devaluation

Banks,

$4,618

$22,399

$5,547
+ 22.6%

,

registered : in

Sept. 26,

4,587

■

14,947

$24,996

(1945)_

change^—• ■

%

l

($22,451
21,120

$15,780

23,717
26,514
24,599

__

6-30-45____—

9-30-45

13,886
14,809

It

had

The effect of this is already

figures, as can be seen by compar¬
ing the latest amounts reported
for the New York City Member

Cash

$18,671

$13,382

3-31-44

/ /'

$4,959

j

Oct* 29, 1945, a
the last date on the above tabula¬

on

(000,000 omitted 1

$21,819
22,472
24,131

12-31-43____2—•

/''v

-

Drive opened
full month after

Value of Franc Gut; Action Essential; Vinson

The Victory Loan

tion.

■'/';! f. .'v.!--'

TABLE 1

Gov¬

tive percentage increases of
ernments and Loans.
5
v

close of 1945 it is of interest to review the
banking figures since the first of the year, and
to compare them with figures for the comparable periof of last year.
The following tabulation shows aggregates for a group of 15 leading
*

There is some difference,

Table 1;

Al VAN DEUSEN

By E.

~

Thursday,.December 27, 1945

:

_

have
thus
far
averaged
12.5%
higher! thdh iri 1944; which is in

Bank and Insurance Stocks

*

FINANCIAL CHRONICLE

THE COMMERCIAL &

3144

in maintain¬

strength which
will make possible a . substantial
contribution toward the mainte¬
ing

a

nance

at

navy

a

of peace, in

the. Pacific."

'

t;':'

Prospectus

Insurance & Bank Stocks
Bought
ANALYZED

Special

Bulletin and

Sold

—

—

•

Sold

Quoted

•

available, upon request

NATIONAL BANK

;

of INDIA. LIMITED

Quoted

REVIEWED

-

Bought

COMPARED

-

Booklet SerVice to Dealers & Broker®

i

Bankers

Company

First California
INCORPORATED

>

Inquiries

7

a.

to 5 p. m.

m.

INVESTMENT SECURITIES

(P. C. T.)

Orders solicited.

invited.

300

BUrLER-HUFF & CO.
OF

^210

West

7th

Y«rk




h.

*

'

Teletype I.A 533

•

,

Teletype SF 431-432

-

Private Wires

A.

Between San Francisco,

WIRES
San Francisco

179

-

L.

A.

-

280

Seattle
OFFICES

IN

Los Angeles,

PRINCIPAL

CALIFORNIA

Paid-Up

The

CITIES

Ceylon, Kenya
Zanzibar

Capital—r—£4,000,000
Capital
£2,000,000
£2,200,000

Subscribed

*

New York and Chicago

,

Bishopsgate,

in India, Burma,
Colony and Aden and

Branches

Reserve

St., Los Angeles
-

TFT FTYPF

Spring Street

LOS ANGELES 14

26,

in

Uganda

London, E. C.

v

,

CALIFORNIA

PRIVATE
v*w

650 South

Montgomery Street

SAN FRANCISCO 20

the Government

Office:

Head

,

Trading: daily

to

-Kenya Colony and

'

Fund

conducts
every
description
banking and exchange business

Bank

Trusteeships
,

also

and Executorship*
undertaken

ctf

,Volume 162

-Number 4450*

THE COMMERCIAL & FINANCIAL

CHRONICLE

Knowlton Rejoins

Of Atomic Power
(Continued from
in

they do not: develop
energy, at a high temperature.
.//'The technological problem of
operating such units to produce
energy ; at
a
temperature high
enough to make it profitable to
common:

generate

electrical

power, oy to
provide steam for heat or for in¬
,

dustrial

pable

uses,

to

appears

of solution

be

in. many

in the very near future.

limitation

real

no

ways

We

the

on

ca¬

see

avail¬

ability of nuclear fuel. Therefore
we may look
confidently to the
widespread application of such
of

sources

*

'

future

technology

and

economy
World.

the

to

power

'

*"

'

ofI the
* t

'

'

t

-"One word of warping
may.

he

appropriate:/ a unit of this kind,
operating, let us say, at a thou¬
sand
kilowatts, produces radia¬
tions roughly equivalent to .those
from

ten

to

are

radium.

tons-of

If

men

be

t

3133)

page

that

a

terrible

that

often before

the

world

should

alone,

reason

do not think automobiles and

we

airplanes will be
power

by nuclear

run

units—not, at least, until

knowledge,
"But the fact that nuclear-en^

.

ergy units require an insignificant
amount of fuel makes us think

that they

will be applied to

ex¬

tend the present uses of power in
our

We

economy.

do

petroleum

or coal to

moded

fuels.

as

although useful

not

is

expect

clear

that

plants may
be only a few years away, the full
adaptation of the new possibili¬
ties to a living economy will be
a matter of
many more years than
power

that.;:'7/77/ / 7if7777/>77/^ 7:7::
7

"Most scientists

see

one

of the

greatest benefits of the atomic
age in just those radiations-and
radioactivities which made -the

the

fields

chemical,

of

and

biological,

Exchange, on
Jan.
1,/1946,
after

does

not

that we
should prepare to
wage still more
terrible ones in the future. It i§
not

to

in
be

now

to

this

be

that

sense

read.

the

-

mean

For

this

atomic

history
is

age: '; a

united, in law, in

understanding,
manity, before

in

is

what

is

world

common

hu¬

common

a common

peril,"

of throe

h 5 1 f

and ; a

Which

ice, it has been
dnnduhced."T

left;the

firm, on>June

30,

1942,

>

"Gimbel

&

"Only time and work can show
if.these hopes are justified. Even
for the field of physics there will
be new possibilities: I may give

Exchange, will

Percy Friedlander

liam S. Greene to

January 1.

and Wil¬

partnership

„

j

-

,

on

•

in
Hugh Knowlton

communica-

.?

.*,

...

Orvis Brothers

' '/

rector of research and

Admit

to

City,

Air

;

'Lines;

position he is now resign¬
He remains a.member of the

Board, of directors

mem¬

bers of the New York Stock
Ex¬

of Eastern Air

Lines, Inc., and is also
of

| Bernard J." Gavan

7

;

Co., 54 Pine Street,

New York

City, members of the

New

Stock

York

Exchange, will

admit Ira N.
Langsan,to partner¬
ship in the firm on January 2. /

:

'

*

New

York

'

'

'

t I'J

Open

Stock

and

will be

j ••>

no

Isabelle

P.

McDermott

limited partner. j:'r

a

..?;>>!rl

7

J

cireanuiahcti to be construed

of an offer to buy,

any

' '*

t' vt

■* ■

Before his
Assistant Director,

as

he

Assistant

the

was

to

Di¬

tistical

and

for

analytical

the

dt 71

both

sion

Mr. Friend is

He

has

graduate of the

a

been

the

ori

since

represented

it-

staff

1937

of

.various

on

w

«.

\

.<?■.

.1

*

*•

*

.4.

*

j

s

of

Exchange,

the

who

York

Stock

has

example: the neutron is a con¬
stituent; of atomic nuclei, but it

^

/:7

7

'

'

^

7 *'

'.

(''

inter¬

s

! *

N

4

*

previously

cjjer to buy,

limited

a

Struthers & Dean,* 7

/7

or at a

iKb'Prdsptsius^

solicitation

*

1

illr'

/"

<|4^5C)P^600i/-Year A/Sinking/Itxnd

does not occur
free
in
nature,
where its properties can be stud¬
ied; Neutrons do occur in great

bated December 1, 1945

numbers among the fragments of
the chain reacting
systems, and it

*

-

'

'v

)

'

11

t

,

>

,

-«

,i

Debentures*

Due December 1, 1957

Interest payable

June 1 and December

1

un¬
ex¬

Pric^

plored. Of this whole field of re¬
search we" see very much less thari
the mariner sees of the

103^ and accrued Interest

iceberg.
; That is what is
meant by research.
V

7 "The explosion in New- Mexico
neither

was

controlled

a

source

power nor a research tool—it
a

Within

weapon,

to be

was

a

of

493,155 Shares of Common

was

few weeks it

a

weapon

-

used against

1"

7/;

atomic age which is most promi¬
nent—and most rightly prominent

r-jn all
not

our

seem

to

Price $9.50

thoughts; There does
be

any

and

plentifully,

valid

indeed

more
we

be

made

doubt

made

very

tested in New Mexico.

does

not

seem

to

be

much

•

'

•

;.'I

.

•

the

future.

TherC

any

mind, little Valid
the

belief

that

is,

to

a

World

be left

men

■

;;

-

■

-v'.

'

v

::'"y

"■

■

/:

:

-..:7/;^

;7:':/!"7

Smith, Barney & jEoi'^^/^Kl^der,
Peahody & Co«77/7/XJnion Securities Corporation

Hemphilh TWoyes & Oo*;
7:7'7.7' Shields &

torn

have claimed




k-(:>

Lee

Higginson;Corporation

P. S» JVtose ley & Co.

for

unexploited.

"Often before

;

Dillon & Co.

my

by major wars these weapons, for,
tactical or humane reasons, s will
-

;7;;

7

/7:/77i 7^;///7:7/

valid

foundation

in

■

There

defenses against such
weapons cari be made effective
against attack abased on surprise, !
or
that specific defenses against
such weapons, other than the de¬
struction of enemy bases and en¬
emy carriers, will be developed

v*;

I-

one

hope that

in

siare

Cdput of the Prospectus may be obtained
jrern only such of the undersigned a* may ' ]
legally ejjer these securities in compliance with the securities laws
oj the respective Stales.! :f
>

made,
cheaply,

destructively than the

per

/5V *7->77' 77

that atomic weapons cart be

made

Stock

Par Value $1 Per SKare

human
targets
in
the
strikes
against Japan of August 6th and
9th. Today this is the aspect of the

December 21,1945

>

-

-

Comipany

in¬

Street, New York City, members
Exchange. Mr. Noble was

;■#'*• fit*\^

■■

77' ' "

i,/

re¬

of the

Suburban Propane IGas Corporation
777;// tv^/" ■/7'
~
^

as

partnership
Coppet & Doremus, 63 Wall

in De

7777777/7777^
\

York

have

Exchange, will

Net* Jasuw

^

Anderson,
New

be admitted to limited

agency committees of the Federal

ak

New York City.

Floyd C. Noble, member of the
New

the

and

be

offices

De Coppet & Doremus
Admit

the City of New York.

Commission

will

with

to

in

,//

com¬

dividual floor brokers.

Before

1935 he
was/associated
with the National Bureau of Eco¬
nomic Research.
/''

and

cently been doing business

re¬

and of

other treatises.

2nd

Colford

members

Stock

programs. - He is
of "The Regulation of

Exchange Members"

Brothers
Jan.

and/ W.

son

lating to these
the author

on

^Broadway,

sta¬

work

volume

Partners will be Elliott M. Ander¬

was
responsible for the co¬
ordination of the Division's activi¬
ties in the field of securities mar¬

and

the

Anderson

he

ket, regulation

of

formed

rector
of the
Trading and Ex¬
change Division./ In that capacity,

bjfering of these seciurUiefjge saU
of ituck securities. Tlte offer ii madeonly by means oj
as

the

Supervisor of the

Exchange Division.

To Form Anderson Bros.

from

latter institution.

appointment

& Co. with

will be general partner in the

firm

graduated from

Philosophy in finance

and

position of saving and the sources
and uses of
corporate funds.
He
is 'the author of a
number
of
articles in these and related
fields.

joining the staff of the Commis¬

acquire
Exchange

City, effective January 2. Mr. Ga¬

*7 f

Thti ii under

tor "of

the

pffices at ,39 Broadway; New York College of
van

was

Assistant Director,

as

was

Sipce 1941 he has been in imme¬
diate charge of the Commission's
studies

College of the City of New
York and from Columbia Univer¬
sity, and holds the degree of Doc¬

numerous

will

and will form Gavan

Admit Langsan
&

the

to

ihembership1 of Herbert Salomon

to"

Mr. Vernon

Stock

the firm

Cowen Co.

director

Telegraph; and
Telephone Corporation." * £' /

11 Gavan & Co.

January 1.

a

International

change, in the investment depart¬
ment, .will become a partner in
on

planning of
Inc.,
from

which

Henry H. Balfour, who has been
with, Orvis Brothers &
Co., /14
Wall Street, New York

Cowen

./.,

of the Reconstruction Finance
Corporation. He later became di¬

Eastern

13

Financial Analysis Section of the

Trading-

the

tions division of the United States

ing.

one

is there that their somewhat
familiar behavioi4 will best be

to

Vice-.,

ary

Stock

Mr.

7V'

Co./ 120' .'Broadway, Commercial
Company/a subsidi¬
City, members'of the'

York

admit

::2 7|

:

appointment
Mr. Friend

over-the-counter
arid exchange
markets, as well as
the /'Survey/of American
Listed
Corporations."'.
7

Mr. Knowl

ton

Dec.

his

of

and the capital
Vernon will head

markets...

9harge of the
'

and ;useS

sources

funds,

the Division's work in the
regula¬
tion of securities
exchanges and
the analysis of

become

to

Admit Two

the

Corporate

ernment1 serv-;-

President

Gimbel & Co.

saying,

.

was '

ripent in Gov¬

/

on

Raymond Vernon as Assistant
Directors of the
Trading and Ex-</change Division.
Mr. Friend will
Government. He is also a member
direct the Division's research ac¬
of the Conference
on Research in
tivities in the fields of individuals'
Income ancf Wealth.
Prior to

ab¬

an

years/ part 'of

waged

The Securities and
Exchange Commission announced
that it had appointed Irwin
Friend and

Stock

medical

fundamental problems.

on

New

the

prevail today. • The fact that in¬
creasingly terrible wars have been

bio¬

studies,
where they should provide tools
of immense power, both for the
j treatment of disease and for the
attack

these

of

York

Exchange

Regulation and Friend to Direct Research in Fields of
Individual
/Savings. Sources and Uses of Capital Funds and Capital Markets*
/

City, members

sence

'

power plants so intractable. These
agencies hold particular promise

-in

that

Raymond Vernon and Irwin Friend Both N.
Y. City
j College Graudates. Vernon to Head Work of Securities

banking firm of Kuhn, Loeb &
Co., 52 William Street, New York

arguments
have
not
prevailed
does not mean that they' will not

become out¬

It

fact

wars

a

idea supplements our present

new

argued that

The

cease.

New

ciable bulk. For this

have pointed to

men

and

sorbed

appre¬

cease;

?

increasing technical and social
interdependence of the peoples of

New York

very

would

wars

,

so

the

anywhere around such
units, this radiation must be ab¬

by shields of

! Hugh
Knowlton
will
resume
partnership
in
the
investment

V;
had been found

weapon

Appoints Two Assistant Directors of
Trading and Exchange Division
SEC Names

Kuhn, Loeb & Co.

'7/'lyi GL H."Walker & Co.: /777./7c..:-;/;\

partner

in

FINANCIAL-CHRONICLE

THE COMMERCIAL &

W

,W.w

Thursday, December 727, 1945

erature

by. the. leadings sponsors
punctuated 7 this year by a

was

number
the

excellent

of

Notable

securities.

Year

1945 will be remembered in history—it marked the
World War and the unleashing of atomic power.

The year

end of the second
1945

was

momentous year, too,

a

field.
billion dollar
continued at

in the investment company

net assets of mutual funds passed the
mark early iiT the year;.: and growth of the industry

The aggregate
a

rapid.pace throughout the period.•"
We are still more than ever *
ment
of Its outstanding 1945
of the opinion that the "first bil¬
c
record. ^
'OV';','
lion of net assets will prove to
be one of the early
the ultimate

milestones in

growth and devel- ;

opment of mutual funds. This^
is not to say that the industry
will escape its share

of growing

in the process. Indeed,
growing pains were clearly in
evidence during the achieve-

pains

■

of

Association

National

The

Investment

Companies, created to

foster the legitimate interests not

only of the mutual funds (opencompanies), but also of the
closed-end" companies, found at¬
end

titudes

some

on

current questions

within the industry apparently

ir¬

forced

to

reconcilable

and

was

its activities, mainly" to
fact-gathering and statistical op¬
erations.^
-•r
'■!

restrict

; Curtailment of the Association's
functions did not settle the dif¬

which

ferences

it

was

unable to

Investmentcompany

solve.

by and; large, are
markedly individualistic and op¬
erations
in the field are suffi¬
sponsors,

,

Some ques¬

idends,
factory
federal

must seek final; satis¬
solution in a revision of

/Others; will

laws.

tax-

probably be settled on precedent
and majority practice. / V 7.
.

thing, as we
it, is the constant pressure

The

see

important

refinement

|A PROSPECTUS ON REQUEST FROM ; 7 for

and

improve- 7

ment within the industry

is being

ment

'

7 Here, in part,
sions reached:

'■

7

range 'basis.
>1 Real tax relief will

the conclu¬

are
•

.

.

*

country.

' '

...

:

c :

,■

.7

,

*

Some time during

cannot

And when I say tax relief, I
all those elements that will
free our enterprise and preserve

.

have

seen

year. *

We do not

7 comparison /between
conditions7 7 and
those
which existed in March, 1937 and
November, < 1927,. the two pre¬
vious
periods when the DowJones Industrial Average reached
its present level.
The discussion
a

r

j The Byrd-Butler • Bill provides
that the 101 Government corpora¬

tions henceforth must come under

in their

the scrutiny of Congress

financial

operations. V'They must
of budgeting, fi¬

toe the same line

for

draws

three branches

dividends. i

that

auditing

and

nancing

Constitution

the double take on

the

the

other

of Government.:

t It will, we hope, write the end
can't ; cut taxes : and
to EXTRA-ORDINARY Govern¬
escape deficits until appropriations
—Government; expend i tures—are ment with its extra curricular ac7y >7:7.77.
brought into Tinei" • r 7 7 r i A ' > t & ?tivities.-'7-;f if;,5—.:
May ' no ' other 7 Senator
ever
j You may ask:;. Since; Congress
again
be
told
that
some
billioncontrols; the spending; and • must

But

;

lyzes 7 "The J Outlook
for Stock
in its current Letter and

present

taxes and

corporate income and

Prices"

ipakes

^

dangers of Big - Government.
I
the riddance of excess prof¬

its

away

up

•
At any rate, I regard it as Con¬
gress' declaration of independence
from Big Government or, perhaps
it is only the preamble to the new
Magna Charta of free enterprise
that will chart our post-war evolu¬
tion.
It
is
only EVOLUTION,
thank God. - 7-/"7'7 - A ^ r'/.A '■

mean

Corp. ana¬

Sales

Street

Broad

.

| I mean
business—and that of the whole
nation for that matter—from the

expect to see the top of the cur¬
rent bull market reached in 1946,"

f

productive
1
.
.
the preservation of small

7 Inventive :7" and
strength.
- *

our

larger than any we

this

from which we
7 A A 7,: V?"
'V7'/?

j

at

or more,

escape.

mean

the new

higher

10%

.

to interest charges

A

we
expect
substantially
prices than those ruling
present, although we also look
for
an
intermediate setback of
year

Lowering

taxes; - Otherwise,, endless
deficits pile up and we are chained
lower

opinion the major trend
of the stock market continues up¬

was

was
framed.
I shared with
the
distinguished Senator from
Virginia, Harry F. Byrd, the spon¬
sorship of that measure.
;
Comptroller
General
Warren
says it is the most important piece
of legislation of its kind presented
in Congress in the past 25 years.
I suppose the canny General dates
it from women's suffrage.

not come

operation costs is the only way. to

our

ward.

its ^spending.,

curbs

"The year 1946 should mark the
beginning of several years of un¬
precedented prosperity "for7:the
business
and
industry :? of
this

It

Bill

the^ Federal/, Government

until

.

was

gress,

•

Prices.

"In

before

had

getting

from Con¬
to Congress to
recapture those - secrets;
In the
following months the Byrd-Butler

Nevertheless,

curtailed.

Congress

the

>

ciently flexible to permit consid¬
variance 7 of
opinion on

technical procedures.

current

it the
Budget Bureau's forecast of a $66
ably accurate—this sponsor sur¬ billion budget for this fiscal year
veys the current situation under
ending next June 30. Of this $66
a number
of important headings
billion, about $30 billion will be a
including: Capital vs. Labor, Na¬ deficit. :>■ :t
V7
V--A-vtional
Income,7 Taxes, :. Money
In short, the 1945 tax amend¬
Rates,
Foreign Trade, Cost of ment was the most tax relief we
Living, - Inflation,": and ; Security could offer " on a strictly short

erable

tions, particularly those involving
the handling of capital gains div¬

(Continued from page 3132)

issue of Invest¬
ment Timings After analyzing the
results of last year's forecasts—
which have proven to be remark¬
Corp.'s

Government" 7

I

these
Research

among

is National Securities &

A Momentous

The€osfofuExtra-0rdinary

of

surveys

1946 outlook for buiness and

we

v

"

Authorize all apprporiations,

dollar

why

is

itself j ust .bal^
budget? v • ^^7 7.
V •

doesn't Congress
ance

the

enterprise

j

of Government

secret from him and the tax¬

payers!

| Well, I'm glad you asked.> It is

market at
this level was still a Buy and that
the next 12 months "saw a further
advance of 51 % in industrial stock
recalls that in 1927 the

a

-

'

''

-

,

■

'

,

*

'

The Road Ahead

1 But the costly mistakes of the
good question.* 7C777
1 It is true that Gongress DOES past 16 years of wasteful spend¬
ing,
with their debts, are bygones,
have the power of approving the
after all.
Instead- of bitter re¬
expenses for ORDINARY Govern¬
crimination,. let's just make sure
ment in its three historic branches
—the' legislative, V judicial
and they are forever gone, pay the
a

itself.5
defined:.,
prices." 7 In 1937, by contrast, the
^Distributors Group, Incorporated
and regulated by Act of Con¬
market at this level had reached
63 Wall Street
•
New York 5, N. Y. '
gress, mutual investment com¬
its top and was entering into a
executive. But
in the past .. 16 cost, and learn our lesson.
panies as a group have achieved
sharply declining phase. 7.'V77v7i*'
So, where do we go from here?
excellent growth and perform- 7
Broad
Street
concludes that: years, out of emergency; depres¬
1 When I sit and squirm in my
sion and war, we have erected a
One of the
ance records during their rela¬
"The' present situation is more
Senate
seat,, thinking about us
FOURTH branch — an EXTRA¬
tively short history. During the
comparable to • that of 1927 than
ORDINARY Government, if you taxpayers, I am convinced that
last
10 ; turbulent
years
their
that of 1937, and < that a stock
the Byrd-Butler Bill is only a
combined performance record
market decline of the character of please, which answers to no audit starter. ■ •<
V1v V'• /7 ,77 "'7' ?v5
nor to any conscience save its own.
has been so outstanding as to
1937-38 is not a present
prob¬
; Now that the war agencies are
silence erstwhile critics.
;
ability."
7..• '/ A
'-7
VV/J)'}■ 7 It is said that the magnitude of! on their way out, it is going to be
this extra-ordinary Government
Once
considered
as
suitable
far easier to say NO to tfiem and
Forecast for, J he. Railroad
is now. so great as. to rival Gov-;
--L
the rest of Government, than.Jor
only for the small investor, mu¬
Equipment
Industry
\
errinxent
||
tual funds are finding.increasing
j^qper,.:^; . 7 7 7
; Congress to resist the appeals of
In a current memorandum <on
v There are 101 of these Govern-:
acceptance among alert trustees,
pressure groups for new spend¬
dutlookfor
the
railroad ment corporations, all financed by ing.;.' :; •
7
7-7 777
corporate fund managers, educa¬ the
equipment
industry
Distributors
taxpayers.
Our
first
step
toward
tional, philanthropic and religious
Depression and war gave us
sound ^ Government was to drive Big Government and not a few
institutions, * executors,. guardians Group forecasts:
as many of them as we could into
and other institutional investors.
imported
ideas
for making it
1, A record volume of peacetime
a corral, where Congress and the
business.
Bigger.
Emergencies,- both x'eal
The advantages of mutual funds
Priced oi Market *■)
people could keep an eye on them, and fancied, opened the door for
are also gaining wider recognition
2. Highest earnings in the in¬
j Let
irne tell: you about this,; the do-gooders.
There was so
among wealthy
individuals who dustry's history.
/
,
»"
Prospectus upon request from
briefly.
: much
reform
in
the
air
you
traditionally follow institutional
3.
Substantially higher prices
your investment dealer of
couldn't
cut
it
with
a corn-knife.
^
The Byrd-Butler Bill
practice in the management of for railroad equipment stocks. ■,
Under sweet and noble titles,
their capital. Only last week Na¬
In 1943,7 some of !us got inter¬
NATIONAL SECURITIES &
This sponsor, estimates that do¬
tional Securities & Research Corp.
ested in the "good neighbor'!: pol¬ Congress
is
still getting these
RESEARCH CORPORATION
mestic and export sales volume, of
reported a half million dollar pur¬
icy and journeyed down to South legislative lures to Paradise. But
the
companies currently repre¬
America to examine the fruits of these rosy paths always lead to
chase of National Securities Series
120 BROADWAY ••
sented in Group Securities' Rail¬
the payroll and paycheck.
this activity.
The
by one individual/ This trans¬
-?*;'■
■;
;
New York 5, N. Y.
road
Equipment
Shares should
action is not an isolated case—nt is
1, Possibly some of you may re¬ big slice is for Big Government
average about $900 million a .year
a
member the startling disclosures which is the payoff in the distant
good ;! example * of the trend
during the early postwar years.
that resulted from this trip.^;The future, when -only the Almighty
toward greater
use
of r mutual
Thi?
compares
with"
a
sales
vol¬
whole nation gasped at the size of knows what the value of the dol¬
funds by large investors. 7.7:,,7 r
ume
of $325 million' for these
our
spending program in Latin lar will be. Let us recognize these
same
companies in 1937—an in¬ America.
Outlook for 1946
f^ ''-/,7V"
..7?7,7-'Ap.%'' i 7 '71,"A' social stunts for. what they aredicated sales increase of 177%.7
What I want.to add to the rec¬ taxes for Big Government. ;
The. usual holiday lull in the
7(7
Last year the companies rep-7 ord now is that in spite Of those
release of investment company litOut our way, and I believe out

|

YOUR INVESTMENT DEALER OR

5

Now solidly established,

.

-

"

Sum

.

-

.

N.

SEdikrtifisSE^iES
—

,

<

PREFERRED

STOCK Shores

*

„

<

^

"

.

'

,

■

in

resented

$^.92

1936

ination

share on

and

year they. will
about $2.60 per
.

ey stone

per

This compares with $1.16
$2.75 in 1937.
This

average.

in

Equipmfjit

Railroad

Shares earned

m

average
Shafe. With elim¬
earn

on

of the excess profits

tax,

Group estimates that
earnings of these same com¬

Distributors

for the Diversification,

f I'

'I

'

.#'•■■■'

■

■

r'

x

ustoclian

&

Supervision and Safe-keeping
:4

of Investments

iti■

Prospectus

on

1946

panies -will average around $3.50
per share, and in 1947 will rise to
between $5.50 and $6.00 per share
—"an all-time high level which

several
thereafter."\" 7

should be maintained for

Request

years
To

Knickerbocker Shares,Inc.
'f

;

''

-V

General Distributors

I

"

.

Prospectus

20
'i

,

Exchange Place"

from

your

may

that

le obtained"

local investment dealer

.Tfie Kevitoi).
(

■

Company

o/B oston

;.' v

MANAGEMENT OF

KARL D. PETTIT & CO.




50 Congress

with

trial

Street, Boston 9, ALass.

Dow-Jones4 Indus¬
now
at approxi¬
1937 high pointptbO

the

Average

or

New York City 5
Teletype NY-1-2439

support the third part of its
this, sponsor points out

forecast,
.

mately

its

stocks

in.. Railroad

Shares
age

at

are

their

with

1936-37

a

per

high

peak.

on

aver¬

share as
of" $55.16
1 •

youif;;way,:;tOQ,: the

folks., want

most /was a Government in the open. - Money
telephone /call, to.'my office from on the barrelhead. ? •. 7. 7 7 : > "
one of the "discovered" corpora¬
!5 The spending spree is over, and
tions;. The party on the telephone the pendulum is 'swinging back.
wanted to know: ."Where in tho The majority party, whichever it
world did you get the information beArmust .take, rthe responsibility
about us; we're supposed; to be for discouraging, pressure groups
secret"77
\ and privilege legislation.- vd77
'*, It was then and: there;: gentle¬ ]' These boys who, are coming
men,
that I knew-* Big Govern- home from the wars are convinced
(he Americain way is best. If they
have one hard and, fixed opinion,
Mutual«Fund .Literature:
Keystone Co.^-Current issue of it/is that no way- of life or kind
of government they., saw overseas
JKeynotes
stressing "An Extra
evm remotely interested them. -*
Payday Every ^Month in 1946."—
-We get a 7 great deal of mail
Selected Investments Go.—Cur¬
rent
issue
of "These: Things from them in Congress, and you
can take it from me most of our
that

impressedvme

,

.

,

.

^

Seemijed Important;"

.

.y

t

.veterans, will,

'Dividends 7:,

Equipment

selling

only $35.57

compared
at

still

^ilqssal:7;^yelatiQnSi;;7AhqiAthibg

:

Affiliated Fund, Inc.—A

regular

quarterly dividend of 40 per share
payable Jan. 21, 1946 to stock of
record Jan.

10.

•

——

:be; happy

to

get

from Government controls.want -a chance to make
money.' Plain old profits—enough
to send a shudder down the spine
away
:.

They

of any

soapbox socialist.

Volume 162

Number^4450

-

3147

/ They saw first hand the results

'.-

V

haye /' reached r^$2,75y. billion,
thereabouts)/'

pf'the; plundering: of thrifty- cit¬

It

tries, and they saw the fawning,

-

defies definition.

j than,

money

in

spend

"/spawns;

nations disintegrate,. because men's dreams of

V

They

saw

1940.

It is

more

prior

years

able

to

The biggest debt Of any na¬

tion at

legislation to:

? >

r

.

.

r

^

1., Include all appropriations

You do it in business-

ernment.

M

you've"- GOT ]TO. Ay
//(A/1
-We have got to do it in Gov¬
ernment .to, save- it from; consum¬
ing itself.
"• • /

Government

out

150

the

counting of Federal spending. ; I
hope- that Senator/Byrd will join
me as a sponsor.
• N
;
/

or

.

X// >v,/\ j1

/ *// >] :

izens by taxation in fascist coun-

Colgate & Langreth

,

earnestly solicit your support;
Here is a final thought.
•
Seventy-five, minutes have
elapsed since this afternoon sesision began. / During this time the

&

any time. r.
J. •
' one;] general appropriation bill.
There is currently some* fashf Congress never /gets the full fi¬
that
ionable
doublev; talk ' which :we nancial picture of the Government
bogged down in debt and moral
Nebraskans
fail; to /understand
decadence.': t//•' /
Federal v Government
that this debt may be lightly
/ has
spent
re} sible. It votes appropriations in over 9 million
These bo^s- fought to be free.;."
dollars./ > It has
garded since we just "owe it to dribbles; the money can be spent
added over 4 million dollars to the
ourselves." /On such a theory, no three years - later, when another.
/;»/;•/ Stream-lined Governmehtv/ ]
t:.'.'
:
debt -ever /should
trouble us so Congress is unaware of it ; and debt—your debt.
/>■' And so it is up to .us ^citizens,]
might possibly be appropriating
'5 voters and Congress, to see that long as it is internally held.
other moneys for the same s pur¬
this * war-swolleft bureaucracy of
./By] all that's honorable in
Bear in mind, Government
ours
is cut down to peacetime ernment, it must be a sound debt. pose.
■

.

-

•

They saw Big Governments

:

in the past was a partner in James
B.

sitCi.'Urrv1,■/;/'■
i//It'has three ; times too many ruptcy arid 85 billion bohdhokb/ employees, with all the attendant' ersv//;*/;• //;/•'"•(
evils

of

and harass¬
ment of citizens.' Before the war,
there were less than a .mlilion ci-

V

duplication

Congress

.

find

must

the

counsel

.

and

Statesmen

catch-words

derives

•

,V'It

those

powers are

'

war

Presidential

proclamation.

of

'

I

wish

:

tal

1

about

;v 1

Billion Budget

piled upon

•i

tinguished from
would

lion

-

trict, at

-

whether

funds

expended properly,? y

tee.'

;;

a

Morris

■

'*

and

It

will
•

nation

•

until

the

drawing

a

of

state

some

or

arithmetic

ship

the

on

of

the

New

York

will

„

admit- George

/ //•••/;'/

1./

uary

W.

Jan-,

on

: v

&

York

Albert

Wolf

Greiner- and

on

son

time.

^;

/

Co., 410 Madison Avenue,
New York Stock

some

ter

", J. ■ / .'" / <

/ ]< / .

&

members of the

January ly Both have been

associated with the firm for

Gov-

of

Co., Land Title Build¬

changes,

Geoff re C. Armbrister to partner-

for

a way

complete total

complicated

Dobbs

admit

this,

*

I'A.—Elkins,

Dobbs to Admit Two

■

'

New

/' /,-*

know

not

to Admit'

; /'
To Be FosterBros., Young
Co., 30 Broad Street,
TOLEDO, OHIO—Effective Jan.
City/ members of the
New York Stock Exchange, will
1, the firm name of Snyder, Wil¬

/

lic will know the true state of the

.

/ /'. '

/

Philadelphia Stock Ex¬

With these improvements/ gen¬

nation's finances.

member of

Elkins,-Jr. to partnership

;'

v.

•.

&

ing, members

Chairman1 of the Dis¬
:,.

a

]' V... ./]

„

Eikin*, Morris

i \

meeting of the commit-

■f

Was

//;/

PHILADELPHIA.

Herron, Mellon Se¬
curities/Corporation, Pittsburgli,

tlemen, the Congress and the pub--

Bros., Young & Co.

naU

:

,

some.

estimates ..forrnext

>•/•

/WientralFower

^

iienceforth/] It

"Balance the Budget/',

j

-

*

•

'.'SSSft,

.

EiMtsfemDanv"

anci

///!'// 'I/V//. ./4ATcxa3CDrporationj.-{

r.

j

'

.

\

v

•

.

iliilililll/4%/Preferred Stock

'y*. /The

^

*

......

In the. beginning,, of my. talk I
told you I rcame here' to- plead/}ispecial ^cause,,and to lobby, youjr
Congress of. Industry.

v-

Isubmitour:Govetnmenf spendshould be hrdught more/ih
////]/ line with dur abiUty .to .payVr:?/ ji.
r:'?:"trS"j^
Then; I>.have fried <to say-that
} / r ^ .• / ;In .-Nebraska-, our- Constitution% says the State's debt -can't exceed free* enterprise and] tax/relief: arte
jifii'p$100,000.-o Our. State capital,'/one the; Siamese -twins of "the. returj if
;,
i of the- wonders of the- West; rWas to sound /Government, c /Let no
'V; paid;for the day),it opened/j/Wp
more fancied, crises separate therh
////
build our roads.the same way, and; /—and us—fromfiscal sanity. Wh^,
;^^:y,,:r<w€bave-good roads.-That is thte a-one-cent ehange in the. corncob]
.r;,<•//.//' way Nebraska likes to do busi- cotton market. undeiT-].the touch
yy g.
hess;.-:and' I represent'-Nebraska. ■ //■ of Big'Goyernmeht's .propaganda

h

show

the past he

the .firm;':

S. Davidson

more

••

]/'//;'/N//'/]"

In

,above /its
would win

of }your special
/will write ■> me -youir
opinions^ particularly- about the
debt.
But/ there is on ly one dij-

billion

/Treasury

leading Exchanges/on January 1.

and, local- study groups

and it is my theme

year*

§:■

to ..extend: loans

is:

/ the

Was elected

General; to

-

New

foreign.ipansg It

;l

;

prompt and efficient annual
accounting both by the expend¬
ing agency - and the Comptroller.

v-,

Street,

separatje

be a: disservice to. any

$60 , billion, ;if rthat< spending .is: to
be balanced by tax revenues.: ■
j-

Sixty

Miller, E.

Miller &

three years.

a

ability to repay, ..and
for/us again', the/ title/pf /usuref
mouh-f
and /
ShylQck^/gg;
g ,| ■r
/i //V'] .'

dollars,: ;folksv-5is
46 % of the national income which

•

seem

secure

Wall

domestic,; spending.; They //come
the same pocket, j Foreign
relief, too, must be carefully dis¬

us-

•

R. Conver

R. G.

the National Association of Secur¬
ities : Dealers, Inc., > to/serve for

execution] ; of

the

other method, provides

our

Dominick, *14

&: Coi,

from

governments Will spend, will '.givb
a .v national tax
load ;of :about

•

critical stage of

a

finance it does not

budget, plus about -g?Ig hope

$10. •billion fhat> State

'■>'

such

annuai;budget,/:;./'/// ////;! j:

each. annual -budget and

the

j

- '

a/limited partner4 in Dominick &:

our

tain of debt.

.' /*A $50 billion
•

1

W. &

-

consideration of foreign and

our

reports a Gov-

$50 billion. y'?' This com-

lion to be

;'

if necessary. ;, / ]

Foreign Spending *

national

with estimated revenues of
about $30 to $35 billion, arid indiCates a deficit of $15. to $20 bil-

'

will be that

prudent that. we should,

pares

•

/

the.

debt commission

a

special committee of Conr
but the problem of our posti-

squeezing debt repayment into

;/ At

I*—i

$50

7

balance the

to

The daily
press

Chaplin

to Admit

Bernon S. Prentice will become

York City, members of the New
York Stock Exchange and; other

Co./ Phila¬
(such as contract
F. Scattergood,
authorizations for building ships) delphia/Harold
Boenning
&
Co.,
Philadelphia,
and
to proper annual appropriation, r
Wilson A. Scott, Grubbs-Scott &
4.,] Intergrate , deficiency] and
Co., Pittsburgh, were> elected com •supplemental /appropriations into mittee members
of District 12: of

projects

/;/5. /Improve

budget

the national budget—for.the next

point out that the war
powers quite likely will run into
; the next fiscal year. •
hf-vV'-?;

McGuiness,

Pittsburgh;

Relate the handling of long-

were

50 to 100 years,

But

hostilities have ceased.

we

Federal finance

war

The President has not indicated

that

3.

term

re-

/g]

not balancing the

take

may

gress,

ended either

by Congressional resolution or by
/

are

a

or

after

months

for

and
slogans and

budget./v/-;f

Most of them will
six

continue

and

lick inflation until

Big Government
the war powers of

f the President.

.

until''.we*proyiae"for" the^''handling
of the debt, and we will: nevejr

this

from

We

;

Congress/./ ////)

your

of

financiers,

peated;.bond issues./"

have more/weight than the" laws
of

who/are
.

-

Much

possible

We need

and
of f in aiici ers who] ,ar
are reai
Statesmen. -We can't, pay off
oi },with

•

passed by

as

./guidance;

'

•

J.

time.

some

Dominick

/
/:

PHILADELPHIA; PA.—Francis

operation by disconk

complete

.

painless

manner as

a

do the nation's welfare.

the Federal
h payroll.
Now there aremore than
three million. Depression and war
agencies still, honeycomb the reg-.
% ular Government structure. They
must be eliminated, along with
their orders* edicts, rules and sur'i> veys, deviously tied up with tax-

-

] 2. Make each year's budget be

a

N

in

/ vilian' jobholders on

,,

:

Congress]/exclusive job.

to

way

a

finance is

Co. for

NASD District 12/
j
Elects New Executives,

.

Colgate & Co.; Mn Langreth
Wood, Struthers

has been with

.

H

i

/As of Jan.-2nd, Wood, Struthers'
Co;, 20 Pine Street, New Yorkf
City, members of the New York]
Stock Exchange, will admit
HenryJ
A. Colgate and George L.\ Lan¬
greth to partnership. Mr/Colgate

I

in

i

-

»

.

(Par-Value $100

per

share)//, i \

vV/-\N

'

|liil
■

WM^axicemfcrirfelate9.'.only'to:.sucli*.6ith^;ahoVe•®hjwe»:]a»]«renot:;v:=/;'A
v/y

; exchattised.foifshares of outstandingj^efcrredrSfockof G^^tralPowebaftd\
k'/N! WLightCompany, a-Massachusetts Corporation, under an Exchange OAfcr
;•

\ &£h'h;:{
/////
'/])/N%;

/

::r~c:y

'. v-Z /

dated'December'2l, 1945;made by said Company

to

•«

the holders*thereof.

.

■V'. <;

'

'V

.

4

i.

y. >

j

..

'."■■■■

j

'i

■...■■

■

./ ."

-

5

'X

V

T.'

/ 'i.

•.

\

\

f.%

f '

■S*M

.

'r:

Let

-me

It ..puts-into /words

/what I've been thinking;
.

r <4Now

.

'

'

;

;

<

V

that the

feel

that

war

is

over

v

.

'i

deficit

!j
.

businesslike manner by the $im}
pie means of testing each part for
efficiency before we remove it. I

v

.a.

«

w

*

:

'V

A

"

■

*,

I

-vyy:

r

^{•

l»9:'.'c

.*

•

Ctpks-of the, -Praspecfus
from *ny' of the^seserdLufnier/; / ; 'y ivritcrs'ofily in( Sutes in- which -such underwriters arc ^qualified tract as r'/-):: .:.v; .///■-/- S.

/•»

.

'6'

spending
fshould stop and'that when exist-1 / I think I know how to do it. | •
:ing commitments have been fiil- / That is why/I decided to/make
-alKGovernment/r subsidies your] Congress y of//Industry mj^/
be
discontinued.-yy Vg pulpit of what I hope; will be my]
.next: legislative venture.C :I think
iwe-,

•

pressive machine in a.'careful and

■: A

W-/
.

*

r.....

■

"VV

-

.y.yy imonth ago.'

.

■>: K

:/'• /

■

*.1,1945 •
->,,>■ •;••...»•••

'•.V

h'&zy

-

.

Price$102i75-pcr-^harc);;/ /■/

-i-i:

4''-,y' V

quote to -you -what-the machine,..can /be .made .to look, aS
//INebraska. ' Bankers a Association if ,disaster- and chaos; will result,
/ (wants, in Washington.' This is from if Big- Government doesn't take
over!/Let-us;'diSmanitle>this :opjfits
resolutions ' of
less
than
a

'-

*:■

////// '..'.•r-,/.4.;J

,

,A^-Vv

'ymWi

;

•IV, "
:i',<tjvA'«.<:jty~Sf5\K,' s?:...•?>■v"j"**t?*

' '""i:

4k

^

•

W*

.

j

yaVi/. ?

,

V;;

j V'Consideratiou should/be given

it

yrii;/)■.]:;//., j:;C

1.'/-//'/■/// /////

as'th4 ByrdVBUti-

important

as

'y;/;to reduction of taxes.;
Goverhler Billj/ With your indulgence, I
y /ment/ corporations On,/should be
shall send up'the frist trial, ball-^
V
1.
^
^discontinued "unless approved di- loon t'"
\
),
| .jvj
i it-* j
jrectly by Congress; ouKnational
^

ji-N "

fKii/4

Ka

KnoiiryKi4* Si»-»

■

Wof IV

janee/^t' jthe earliest possible "diite;
N vand all the broad powers
granted
the Executive
Department; '.i ancl

-

under which most ot these /spends
i ng" /agencies - exist, should be .re-

;
■

u'

:

turned

•

to

,Congress

so/ that we
://yj!, y j mayhave, a Governmeht
by the
will - of the people through their
r-1 elected representatives and not;by
.

|executive
v

i

■'*&'
f

J;,;<

■

<'

j

'•

f
*

.

V

-or&eri'yy^
*.

i

v'

/•

j

-

>•

j

•

.

^

•

i

.j*

place -all/ Government dinaneiaii
operations

on a

Eytery year/at

1". S.

businesslike;

one

basis;.
time and in one
/;

Specific measure Congress would >
consider/ the/ full/ operation of *

Mosclcy &■ Co.yi;!

iTuckerprAnthony &• Co.; j,

.

GoyerniTQeiit /which -wpuld be ' out.

iii the open for everyone to see.

AsY

soon

as-1 return

•

R./W, Prcssprich & Co.

j.

t-yiy </A. -post-war 'f budgeting/ wiilNtie ^the

j

/ y E. H.- Rollins
|

>v.*.

Sons

Iaoorpwi'tted-^ ••'>:

< •'

White;Ayeld-:&--Co

;

Shields & Companyb/, /

Haljgarten/&;Cof

/.

Hallgarten/

|: 14/;<riv:^Patniih\^Go//A-r^^

.

?to'/Wash};

officials of Govetnment^the Secf
"

'*1
;

'k?!'^•" /l

j.u)

*;*

.j

vrrjiebt*;




b

/ N ipgton* I shall/intro,duce a /measr
ure. asking
the' Responsible fiscal

,The Debt,/and 4he. Ibijfet //.
The stupe^dous hSw^element/of

/
.

.

.1 ^m ^proposing;/a ;FULL, : AC-'
COUNTING BILL, which would

sic
Y'
'•' b-*"* :'\>v
:**-&>■:^

I

V-/'../ ;;J,

j. //>>/••]'•-',

/'N

|fe«A

THE

Thursday, December 27, 194S

CHRONICLE

COMMERCIAL & FINANCIAL

3148

Chart 3.-—Percentage

Price [Structure

The Post-War
(Continued from page
far

it

as

was

rather

triotism
gam.
Price

increases

relied

less

degree
Where

a

between

*

electricity actually declined in
with the long-term bends.
personal Farm
thanhowever,
doubled.
The products
general more
picture,
3132) '

motivated-by pa- line

on

to

than
were
a

. j
nonethe¬

considerable

to
expand productions.
choice had to be made
higher prices and less re¬

production,' the decision
permitting highef

quired

in favor of

was

'*■C'-p
j
In general, the prices paid- for
finished munitions actually declined during the war, reflecting
*

prices. 7
,

:

✓

of widespread
price increases

is one

tial

and substan¬
with com¬

exceptions. • ."'[.
granting that price increases

paratively few

of

cost

the

Change in Consumers' Prices,

+

now

corrected? Are some Prices
than' ample while
others

be

more

upward adjustment
market? Will such ad¬

would call for
in

a

free

7

OECILE

100

index by dec¬

living

(10 groups of equal weigh;;
index) according to the exi
tent of their price rise from June
1939
to
June
1942.- The major
iles

tenth

in the

item

excluded

total

index

is

18%

over

items accounting

the three years,

one-tenth of the total

for

the

rent. " With

increasing

V

NINTH

weight

1

widespread, are there
of the 175 items actually declinec;
not serious discrepancies between
slightly. In contrast, the top tenth
the prices of: various products or
increased over 50% in this first
groups i of
products which must
been

have

by Deciles *

PERCENT

--■--sixth

SEVENTH

period, - \ 1 v,
In general, those items which
increased most in price during, the

£---fifth

three

years

equal

made an

:.;V

""eighth

V

first

>'[

-i;

:,:;r

„

r-fourth

reduction in unit- costs as justments result, in higher f or gain in the three years following
-'---third
the General Maximum Price Reg¬
large-scale production was lower average prices?
Aui/:
;:t
ulation.
The lower tenth which
SECOND ' •
reached. It is true that manpower
Undoubtedly price controls were
was
attracted to these fields by more effective at some points than actually declined in the first pe¬
riod
increased
only moderately iri
the economic incentives of higher
v[„ •,
'I'.;X>v,tr'-'A'
at
others. : An
outstanding fi ex¬
----FIRST
the second. The upper tenth had
wage rates, upgrading,'over-time
ample
of
effective
control / is risen
and other pay premiums, as well
by almost 90% at the end of
rental rates. In general, however,
as by patriotic motives.
Because the record does not indicate much the six years. In only two of the
10 deciles were the price rises in
of the economies of mass output,
more than the usual dispersion of
the second period sufficiently dif¬
however, the costs of production
price changes,
\-ivferent from the first so that the
of munitions items, and therefore
-20
the
trend lines actually crossed.
: "
prices paid, typically were
Controls Did Not Prevent
:JUNE 1939....
JUNE 1939;5
JUNE
JUNE 1942
More detailed study of the in¬
stable or falling.
VUNE 1945
1939
J'; ,;.v;Increases A;
dividual items discloses about the
I
Data
represent 175 consumers' prices which are 77.8# of the total consumers*
Chart 2
shows the price; in¬
Almost All Prices Have Risen j
price index by weight; the major item excluded is rent. Deciles are determined by
creases
of the. major groups en¬ same dispersion of price changes
percentage change from June 1939 to June l942 in* terms of base weights in the index*
Contrary to the tendency of
in the second period as~ in the first
tering into the Bureau of Labor
Consumers' price index was formerly designated /'cost of living" index. '
v
.
munitions prices,1 the prices
of
Statistics
cost
of living
index three years of relatively free mar¬
'goutcesL U,
pepaftments ot Labor an4 Commerce, "
*
* 5*
practically all civilian type goods
kets.
It is true thatprices 7 of
of prices, costs and incomes, each
(Consumers Price Index for Mod¬
income of agricultural proprietors
and of most curently produced
erate Income Families in; Large some, items, notably meats, were
influencing the others. Thus, one
.
services have increased. The index
Subsidies almost doubled over the same pe¬ result was to limit the amount v
Cities) over r two periods. ?.t The actually rolled back.
riod;
'
of wholesale - prices pictured
in black
were
vised
in
'some
instances
tb
consumers had to spend.
>
\ ; ;.
segment of the bars shows
chart 1, which excludes most of the
Just as there was no large seg¬
the change in the 3 years prior provide ample incentive to pro¬
Aside from this important efstrictly munitions items, rose over
ment of the economy which did
to the. effective date of the Gen¬ ducers while holding down prices
feet,, the influence of controls oil
^
£
40% from August 1939 to August
not experience
large profits, so
eral Maximum Price Regulation. to the consumer. Other items such
prices might be measured by their ■:%
1945./ •
••
; V >
there was no important segment
Up to that time there was a rel¬ as .fresh vegetables, where con¬
restrictive influence on consumer
There were the usual variations
atively, " free
market.Informal trols were more difficult, in¬ where the supply was limited by expenditures out of wartime inreason" of
prices.; The existing
in individual commodities which
agreements, as well as formal creased more in the second three
come, given the limited supply of
are characteristic of even a more
price structure offered sufficient
controls, affected the prices of a years than in the firsts
goods and services, i The. poten
; 1' normal peace-time period.
Raw number of imported raw materials,
profits
over
and
above
costs
to
This
tial effects of removing those con¬
dispersion will continue.
materials tended to go up more metals and certain other basic in¬
There
are
a
variety of reasons encourage maximum production trols may be deduced from the
than manufactured goods. Gas and dustrial
commodities but
these why some prices will, go up while for war j and to provide consumers extent to which consumer expenf
with a volume of goods and serv¬
controls affected the ultimate con¬ others go down. - The
ditures fell below the relationW
evidence
;
Chart 1.—Wholesale Prices, by
ices as high as or higher than in
sumer only to a very limited ex¬
does not suggest, however, -that
ship to current income [.which
V
Economic Classes
i
the best prewar year.
Shortages
tent.
Also
there
was
still
some
•'
•••"'. '
'
••
''i
would be expected
under more
they
are.
wartime
distortions
slack
in the labor supply and which will require more than the were relative to the insatiable de¬
INDEX, AUGUST 1939-100
,V t
normal conditions in the absence
100
other resources to meet demands usual amount of such adjustments. mands of war and to the demands
of controls,
;
for additional production. The sec- On the contrary, it indicates the of consumers with high wartime
Out of a disposable income nf
.
gnd period covers three years of general nature of wartime price incomes. Whenever there was any
whether
existing
prices $138 billion after taxes in 1944,
tighter supply and extensive price increases. Those items which in¬ doubt
consumers
saved approximately
<
would encourage all-out produc¬
controls, y
*
creased little if any are typically
$40 billion. This is considerably
Prices
rose t in
both | periods, those which are very stable or, tion the price ceilings were usu¬
«o
more than a normal rate of sav¬
though the rate of increase was like electric power, subject to a ally liberalized. ■'
ing.
Chart 4 shows this prewar
not
so
rapid in the past three downward- secular trend.
Even
relation between total consumer
Demand and Supply.
years as in the preceding period.
where prices were actually rolled
,, / '
Given this - background as to expenditures and disposable inNevertheless, the price changes in back in the second period they
what - has -happened to prices and come and the extent to which ex¬
this second period are consistent remained high.
"
;
<
>
penditures fell below what would 1
with and an extension of. those
production during the war, anal¬ have been expected during the
f40
V
ysis of supply-demand-price re¬
Prices Covered Wartime Costs
Which occurred in the first three
war, if goods and services were
lationships
may
well
start
with
years.
'
.
It is true that there
has not
an
appraisal of wartime restric¬ freely available.
K'SVv
Rent is -the only group which
been- a free play of supply, i de¬
The excess of savings, or the
vV..'K.
tions on consumer expenditures
&
did not show a substantial further mand and price in the civilian
deficiency of expenditures, is in
and the potential effects of re¬
increase. It is a special case, how¬ sector of the economy and that the
the neighborhood of $20 to $25 bil- ~
:■,;■■■■;;
moving
those
restrictions.
120
ever, in appraising current prices
price level for civilian goods at
lion. This is not a measure of demm
in relation to costs, in that it is a the end of the war is undoubtedly
Wartime Consumer Expenditures ferred demand—it is simply the
'-f,
payment for use of an existing much less than it would have been
difference * between
what •: was
the

„

.

,

.

"

♦
'

*

"

.

.

"

'

4

•

'

.

r

.

1

■

:

.

-,

.

.

,

.

•

"

,

,

„

,

.

_

,

-

.

,

,

^

t

-

,

»

-

asset rather than for"

duction.

current pro¬

Rent. controls

were

not

relatively ,easy to enforce;
could be
applied strictly
without fear that current produc¬
tion would thereby be limited.
Chart 3 examines the degree of
only
they

•00
(939
'

-,'f
V Source: U. S. Department of Labor.

Indexes
U. 8.

recomputed to August 1939 as base by the
department of Commerce.
i

Chart

S:~

.

price dispersion. It groups 175 of
the individual items included in

2.—Percentage Change In Consumers' Price Index, June 1939 to
.June 1945 1
PERCENT
-10

COMBINED
INDEX

♦ to

♦ 20

130

♦ 40

+50

+60

if controls
It

is

clear

ha,d not been exercised.
from the record that

price controls were effective, in
limiting price advances. They did
not—nor were they intended to—

advances where neces¬
required production.
;
v >
Neither did these controls pre¬
vent an increase in prices suffi¬
cient to cover wartime costs ahd
leave high profits before taxes.
Aggregate corporate profits before
income and excess profits taxes
in 1944 were about $25 billion, 6r
roughly one-fifth of the net value
of
production
by corporations.
prevent

sary

to

secure
.

,

The^e is no major segment
economy
in which prices
insufficient to cover costs.
'

Profits

FOOD

before

taxes

CLOTHING

war.

,

Even after the

income

w0usefurnish1ngs

other fuels and ice

and excess

used
of costr

during

relationships

were
\ j •>

are

here as the best measure

price

of the

the

profits were at peak

levels, >Rer

lief under the carry-back provi¬
sions of the tax laws will require

adjustment of these: re1
ported earnings for the war years.
upward

The earnings

businesses

etors
from

1

Formerly designated "cost of living" Index.

Souree:

U. S. Department of Labor.




that war¬

been

''

Consumers'Expenditures and Disposable,
[:■'-■

T

T

T

o

>
a:

ui

(0

a

120

z

<

2ft

g3
O

or

:

-J

J

100

o

o p

./•;

u.

,

u>° \
'■■■

3o
O

-4

Z

d

UI

CD

CL

vf

80

X

UJ
it

60

</>
UJ

NOTE.- LINE

OF

REGRESSION

WAS

FITTED

cc

TO

DATA, 1929-40

.

3

o

distributed. The net

spent and what would have

UJ

The net in¬
of nonagricultural propri¬
increased more than 25%
1941 to 1944" without a cor¬

produced or

4.—Relationship Between

140

O)

if)

responding increase in the physi¬
cal volume of goods and services

rapid spiralling

Income

prevented
which were ample to
have not

price rises
cover wartime costs.
come

miscellaneous

unincorporated

also suggest

time controls

oas and electricity

of

i

aggregate, wartime con¬

V

Chart

high wartime

profits taxes,

"

RENT

In the

trols prevented a

z

o

40

DISPOSABLE
.

Source:

U. S.

.,

INCOME

(BILLIONS

Department of Commerce,

OF

140

120

100

80

60

40

INDIVIDUALS

OF DOLLARS)

D. 0.

45-732

Volume

Number 4450

162

THE COMMERCIAL & FINANCIAL CHRONICLE

spent in the absence of supply dif¬

would

ficulties.,;,

no

>,'

be true

deferred

if there

even

demands

the purchasing power

Deficiencies Concentrated

This

however,
is
concentrated in certain

segments of the consumer's bud¬
get.
About two-fifths of it was
due4 to

his inability to buy new
automobiles, to the rationing of

gasoline and tires,; to the gradual
decline*: in the number of automobiles in use, and to the results

ing

curtailment

of

a

other

variety
related

of

*
expenditures
to
user-operated transportation. The
top panel-of Chart 5 shows'the

expenditures

value

in

available,

expenditures to; disposable in¬

occurred

>\'yy)';'y"•/,./

of chart 5 shows this relation

durables

consumers

for

except

automobiles, which are included
in the; top panel, and jewelry.
Jewelry sales are excluded be¬
cause they increased fully in line
with the increase in income.

"/Housing

V;

another 'i field

is

which expenditures

in

did not keep

pace with the increase in income.
Chart

5.—Major Segments of War¬

time

Deficiency in Expenditures

;v> With Income

■■

■

with

the

on

for

active

more

readily available
price controls.

are

not

and

no

to

In

1944.

that

physical
in

civilian

to

1944

latter

in

as

1941.

;

does

estimate

1;

Neither does it allow for the

large increase in sales of bever¬
ages and meals

eaten away from

l^ome* £■£%&£

y y/"PP

However, if allowance is made
the

deterioration

and

ences

with

services

restaurant

distribution
sion

that

must

we

•.

y

of

of

in

conveni¬

connection

sales

and

food, the

retail

conclu¬

/

.

Transition'

./Consumer

demand

/:/,;

pend primarily
to

sumer income

may

curtailment of

war

;

smaller

-

expenditure

The Bureau of Labor
shows

an

retail

food /prices

1944.

increase of

only 29% in

from

1941

to

This, however, excludes or
partially includes such in¬

only

tangible

unmeasurable factors

or

"black

as

Statistics

market"

sales, forced
trading up to higher-priced items
or
higher-priced stores, and the
general curtailment of such

ices

inevitable,

minimum.

even

-

as war
more

from

the

labor

offset

the

6

that

40

60

will

services.'

In

will

pressure

of

(BILLIONS

*

Lines

of regression

1029-40.

fluence

on

de¬

to

the way consumers will

various
contingencies,
unemployment, or to buy
goods which were not available
during the war.
Others will con¬

aggregate, con¬
spend fewer dollars

meet

such

;

as

tinue to

save

income.

■/"

brings sufficient easing of the
supply, this physical volume—the

average consumer

the

ultimate

fitted to data for

were

Department of Commerce.

spend their current income. Some
consumers will use these savings

the

to

out of their current

y

The expenditure

decisions of the
will depend on

conditions at that time—including
his confidence in continued em¬

increase

con¬

even

conditions

have saved well

billion.

Aside

from

over

debt

their

total

That is

reduc¬

income

the

in

tives involved in their
tion.

of;>their

best

ways

Consumer holdings
liquid, spendable funds

these

have almost trebled since the

some

market

On

accumula¬

consumers

large

income?

war

..."

war

first

balance, the importance of
savings lies in their in-

r'7; (Continued on page 3150)

for
bMV anv-9f these

This advertisement is neither tin offer to sell nor a, solicitation of offers to
The

securities.

offering is made

only by

the prospectus.

■:

evidence

suggests that there has
been comparatively little .increase
in physical

j

40

J

60

<0

,

100

D'SFOMBLE INCOME

■

,

OF

120

evidence

INDIVIDUALS

•'(BILLIONS. OF DOLLARS)

ot>*S-rjj

are

related to income for the previou* lear.

Source:

This

U. S. Department

of Commerce.

the limitation of expenditures

home

lated

to

home

ownership

•

by

t

In the

tion,

re¬

and
and

occupancy,

rental

other controls.

goods

and

housing

segments, controls were effective
in limiting consumer expenditures
so that the full impact of demand
on

the

limited

supplies

these
some
even

areas

that there is

increase

in

in the face of

decline in

consumer

not
It is in

was

reflected in higher prices.

room

for

expenditures
a

substantial

income.




This

■«£,}', •/>'.>/.

v

consumers.

of

the

a

f-:r.

y

*

V .*

,•

'•>

.y

*/.

-

\V L-.V

y

Inc.p'ppyy

COMMON STOCK
-

substantial decline

from 1941 to 1944.

?

(Par Value $1.00

t

per

Share)

The yardage of

clothing available .to civilian con¬
sumers also dropped substantially.
The

125,000 Shares

Y:f

Alaska Airlines,

Spe¬
of

output

clothing and shoes for civilians
compiled by the Federal Reserve

Bureau of

Labor

•Price $15.50 per

Share

;

p r

;

Statistics

index of retail

clothing prices in¬
creased 34% over the three-year
period. Again, however, this does
not include

lowance

such

•

user-operated transporta¬

durable

indices

Board record

shown in the
bottom panel of chart 5 was due
to the limited supply of housing
for rental purposes, relative to the
large increase in demand with the
rise in consumer incQme, and to
deficiency, as

fr-y,

as

civilian

to

cial

In fact, such

does exist suggests an
decline in supplies avail¬

actual
able

»

Linos of regression were fitted to data for
1029-40. ' -V:
-V"■.
/:■";-/ <
'--v'./
"iwr Housing expenditures for the current ytar

volume.

'

of

as

or

for

■

Copies* of the Prospectus may be obtained from
dealers

in

securities

any

in

of the undersigned as are

this

registered

State.,/, v^

intangibles,'

forced trading up because

shortages

or

and' elimination
conveniences
nected with

deterioration

of

of

and

of

many

services

the

permit

its distribution.

clusions

to

of

the

urements,

can

a

any
same

be

wide

precise

variety

A. M. Kidder & Co..

Bond & Goodwin, Inc.
Coburn & Middlebrook

Reinboldt & Gardner

meas¬

general

drawn

R. H. Johnson & Co.

Courts & Co.

Foster & Marshall

con¬

While the statistics available do

spect

.

make sufficient al-'

various

low-priced lines, general lower¬
ing of quality of the merchandise,

not

.'

with

of

con¬
re¬

con¬

December 26, 19i5

i.

point to be noted in
this connection has already been
The

v

expenditures

part
what

will the removal of wartime
alter those
expendi¬

serv¬

clothing increased over 50% from
1941 to 1944. Again the available

In

save

a

conditions

wartime

of

did

ture decisions?

.•?.//;/.V/"'''.••

began.

Why

rather than spend so

prewar year.

of

j

penditure decisions, and therefore
on
prices, depends, however, on
some
understanding of the mo¬

than

more

had

reserves

Appraisal of this influence of
wartime savings on postwar ex4

$100

tion, increased value of insurance
policies and other; forms of sav¬
ings, they have accumulated over
this period almost $100 billion in
currency, bank deposits and Gov¬
ernment bonds.

these

if

not been accumulated.

retail-delivery.

as

Consumer

140

IN0IVI0UALS

00LLARS)

v

U. S.

decline in the physical quanti¬
ties purchased.
If the end of the

value

OF

OF

/•;-■'

Source:

commodities and

:

120

100

INCOME

'

some

mean

60

'

DISPOSABLE

i

a

Accumulated Buying Power

re¬

return

income

many

production is curtailed will
than

.

.

/

accept

we

chart

During the last four years con¬

civilian

lines, and the withdrawal of
workers

of

though ployment.
But because his re¬
expenditures decline.
The serves
against
the
proverbial
result would,, of course, be a de¬ rainy day will be very
large bycline in prices, particularly that
prewar
standards,
he
will
be
portion of the price represented willing to spend more and save
by the intangibles and not meas¬ less out of his postwar income
ured by price indices.
./.yy;:; than he would under the same

practical

wage

.

dollar

premiums,
high-wage war in¬

dustries to lower

,

war

duction in working hours, the loss
of overtime, and other
the shift from

,

hand, if

This does not necessarily mean

if unemploy¬
a

J

,

this

sumers

This is because the

shrinkage in income.

a

savings.

ment should be held to

/,

.

the

for those goods and services.

It

be

much

a

in 1941.

in

be expected to increase

sumer—may

for

av¬

of
These

available

,

evidence

real

In the absence of increases in
basic wage and salary rates, a de¬
cline in consumer income would

warranted that the

categories

market;

be

as

sumers

.

erage consumer obtained very lit¬
tle more in 1944 than he received

seems

the
not

mand for

will also be necessary to appraise
the effect of deferred demand and

accumulated

certain

lessening .of the

the

production.

a

present high income, then it fol¬
that any substantial decline

Therefore,
see how con¬
be affected by

war

of

lows

what happens

on

is to

effect

large part of consumer expendi¬
is already in line with the

income.

consumer

the

ture

transition and thereafter will de¬

the next step

TOBACCO

•

/Yyy*

during

FOOD, ALCOHOLIC
BEVERAGES, AND

...

Consumer Income in the

/;■•/'y.

of

of

the

the

;

T

48

few months

next

On the other

in

analyze

will

unem¬

consumer

intense.

changes in supply-de¬
mand
relationships
during
the
transition from
war - production
and thereafter.
'
,/v

not

the

appraising

fast

less

possible

con¬

processing
of
those
foods.
For example, there may
have been larger consumption, of
flour in the form of bakery prod¬

for

mark

it

that

out

The pressure of demand for goods
of this type will continue to be

the

cover

ucts.

able trends.

approximately the
quantity' of food

available

The

contrast,

conditions,

additional goods of this
type are available almost regard¬

con¬

It is from this bench¬

1951

for

In

as

This conclusion is

from

in

war—can

competition

now

60%

incomes

Expenditures Were in

Line With Income1

Expenditures for some items—
those not to be had during the

limited

half of the

over

con¬

will be substantial.

duction.

broadly,

very

not

quantities adequate to meet con¬
sumer demands during the early
stages of transition from war pro¬

ef¬

the

about

sumers

JEWELRY

pressure

is

ployment
during the transition
will inevitably be more than the
practical minimum in a normal
peacetime year.
The decline in

will

have been

6.—-Major Segments Where

Wartime

prediction of gen¬

a

point

goods

Bureau of Agricultural Economics

increased

to

of expenditure if the controls had
not operated. Even more impor¬

items,

y;p

suffice

from,

pected, given present consumer
incomes, present supplies of those

»

with

sence

the controls

article

business

goods

from all the items which

expenditures

food

was

AND

automobiles might

highly signif¬
icant in appraising the current
price level and evaluating prob¬

Consumer

GOODS, EXCEPT

know

not

Chart

t

income, it is
important that the high rate of
saving, or deficiency of expendi¬
ture, in relation to income has
been closely related to the ab¬

sumer budget—today are not far
different from what might be ex¬

''//■•-

cerned

eral

con¬

count

large
they have not prevented
the price increases
resulting from
the pressure of
existing buying
power on'the-limited supplies of

same

AUTOMOBILES

do

this

decline in

how¬
ever, prices for sych; things ; as
food and clothing—items that ac¬

measure

Prices

We

new

Speaking

con¬

power they have affected de¬
mand in these categories. In

Raised

price

supplies of goods and services.

trols have limited consumer buy¬

reports

OURABLE

as

greater

!

ing

goods and services.

that

say

prices,: costs
and
incomes,
preventing even higher
consumer buying power and even

It is in spite of the fact that the
number of civilian consumers was
To the extent that Wartime

to

fective in preventing a spiralling

in¬

,t

con¬

of

This is clear from chart 6.

reduced.

In

Since

y/;•>y?:'./" y'';

y.

not

military service.

demand to other categories

sumer

'•; yi■

increased

in

have resulted in diversion of

thereby

r

TRANSPORTATION

things

been

comes.

1941.

have been ineffective in

fields.

these

tant,

line

in

much

a

the ' increase

is

represented by expenditures
for fod, beverages, tobacco, cloth¬
ing and jewelry, outlays have
in

for

of

to what extent the absence of such

/

Increased Expenditures

USER-OPERATED

This

For the half of consumers' budg¬

;y/-/.;Y.
T

.V--' :

•,.

real

months

limited resources

of the

prices,

controls

ets

Itelativeto Income V
42

V:;

.

consumer
more

servicemen to civilian jobs paying
than they received for their

more

in

expenditure
necessarily
primarily in in¬

creased

Half of Budget in Line

;/

Almost one-fifth of the aggre¬
gate deficiency was due to severe
shortages or complete absence of
a wide
variety-of other consumers
durable goods. The middle panel
all

come.',

rise

reflected

was

in-

consumer

did

expenditure

face

sumer

seriously out of line
large increases : which
in

war

the

deficiencies,. notably
in
medical care, in domestic and per¬
sonal service and in such special
items as foreign travel. Over most
of the other categories, however,
Current outlays do not appear to

the

few

last

ex¬

roughly

are

with

than he

other

been

;

the

smaller

••

which

the

in

In spite

consumer

income, the
getting very little

was

normal

more

about three-r
deficiency of
expenditures in 1944. 'There were

the

time income.

a

year, accounted for
fourths of the total

have

come from 1929 through 1940 and
the apparent deficiency of expen^ditures relative to the high war¬

..

categories, cover¬
ing about one-fourth of consumer

consumer

with

this

of

in

penditures,

three

have

relation

of wartime

increases

commensurate

These

group

consistent
of

goods and services.

sumer

of

by

savings.

deficiency,

heavily

were

backed

3149

J- C. Bradford & Co.

THE COMMERCIAL &

3150

fit*

that part of the value of the prod¬
uct which is .retained by business

■

as

•

■

Most of the huge accumu¬

during the war
curtailment of
;
expenditures in those parts of the
Y total consumer budget shown in
j chart 5, Sortie of, these expendi¬
tures were of the sort which could
be deferred and some could not.
; Typically, the deferrable demands
•■ace again in the areas where the
lation of savings

.'/resulted from the

f

•

.

available to consumers
the ea^ly stages
ox
the transition. *: Wartime savings tend to reinforce those de-.
mands even though the purchases

supplies

i

will be limited in

-

The others will be
there is a lessening

demand.:

of

(Continued from page 3149)

made.

Thursday, December 27, 1915

FINANCIAL CHRONICLE

modified

as

of the pressure

of demand relative

supply.
Improved quality and
improved service will, however,
mean
more
for the consumer's
to

dollar, rather than price increases,
and hence may be classed as antir

inflation¬

deflationary rather than

The use of savings to tide
consumers
over a period of un-.
ary.;

employment or other loss of curincome will operate in the

rent

way.yY.: • Y y/y > YY:; Ty'

same

market

domestic

at

hand if they

productions going in a
hurry. Any-apparent inadequacy
or threatened interruption of their
sources of supply may cause them
to anticipate their requirements
get

can

so

reserves

its,

hampered

crease or

war

are

repeated.

not likely to be

First and-foremost, are the Gov¬
ernment-controls over both prices

»; '<

well

accom¬

as

a

total spending, which has not been

Y

curtailed- during; the war.l Earlier
shown that expendi-

"

it has been

-.v;?.■

nondurable goods

for

tures

;

have

nearly in* line with inIt is

been very

words/high productive

large supply

*

are-large; but combined they are
not so large as r that portion of

in¬

any

consumer

somewhat larger inr

YY;.

In other

as

are,

a

employment after the
a

-

in

decrease in national out¬

put.; V Y>

however,
several
reasons why the
brief inventory
boom and collapse after the last
There

decrease

panied by

by lack of materials.
"

general, however,
or

■

>

undistributed prof¬

disposable income will be

production and

that their own

distribution will not be

In

crease

or

greatly affected by. any probable ...
•near».term-changes-in earnings.
"Y ,
These two segments of demand

-

T.

creased, consumerr income.

war means

therefore,- That prices of
including • those intangibles which . cannot: be meas- !
ured adequately by 4 any index,
reflect most, of the impact of the
clear,

of civilian goods
large demand for

,

these; goods,

those

goods/Similarly, the failure
to shift manpower^ and facilities
from the war effort to the produce
tion of civilian goods would leave
little ? room for any increase in
consumer
expenditures ; • but- "it
would also provide very little in
the way
of additional-/ civilian
goods. 17 ; r tY;;YY!! r'"• \ T'TY'!;!"!-/0.! *

present demand on the - limited
supply available to civilians,/ ., v ;

>1.

*

.

deferred demands
>;'r Curtailment of war production T"
;
and accumulated ^buying
power and inventory holdings which can
will cause both a, decline in con\
will serve to increase the pressure prevent such excesses., Secondly,
sumer income and an, increase in
j may be paid for out of current of demand for those things which businessmen remember the licking
the manpower and other, resources 1
income-.
1
\
were' not
available, during the they took in 1920 when losses on
Y. The combination of deferred dei:;'.:-:
■'.'V
r:.''i
r}C.'Y available for civilian r production.
war,
Accumulated buying power inventories and forward commit¬
Since prices of most non-durable v ,
mands and accumulated buying
Supply and Demand in the Y |
ments put many of them into the
will cushion any. decline in, der
Transition *4;Y:; T-T I goods have reflected wartime con¬
/ power will serve to maintain the. marid for the other goods and red ink and forced some firms "."•'!!- /!
pressure of demand on supply^ in.
These supply-demand relation¬ ditions of demand and supply, this
•'!services resulting from a decline into bankruptcy;
combination of decreased demand /Y
i those areas in spite of a} decline/
Better information how avail¬ ships can be summarized in terms
in consumer income.
It will not,
and increased supply should make
:
in consumer* income and until a
able on inventories" will provide of, first, the variations to be ex^however, exert, a greater upward
for some'easing of prices.?
I high volume" of production has
TT/T7/Y7;;
ample warning to the Government pected between two broad cate¬
pressure;
on
prices
than
it
was
r satisfied - the most urgent needs.
T: Any spending -of - wartime sav-YY
and
business of. developing ex¬ gories of goods and, second; the
Y. Over this segment then price con- already exerting toward the end
difference between two periods of ings will operate to? cushion the
7.
of the war.v It will be more ef¬ cesses. Furthermore, the probable
! trols are necessary until the latter
time—the transition and. .the-pe¬ decline in demand for-nondurable YY
fective as an antideflationary in¬ decline, in consumer income* from
condition ; is
reached. " But
it
goods resulting from the drop in Y
the wartime peak is larger now riod beyond. The transition or re¬
fluence than as a threat of infla¬
/ should be kept in mind that this
income but probably: will not be
than in 1918, and there is now a conversion period might be de¬
tions 7 -'/
r}Y/YYtI/Y:'!
segment accounts for only about
fined as the first year after VJlarge enough to prevent* it. The Y
Business- Expenditures fTY-?''} much; greater potential increase
r
one-fifth of consumer expendi¬
these goods
in output of civilian goods over day. - Y§''YY7T; t&zS&y TTY Yt'' ;T! Y-'f ■ sellers' market for
Business
capital expenditures,
tures/'-; V- ,'""Y'"
which has featured the war will
either the wartime or prewar rate.
Where ! consumer
expenditures
v;
jn addition, consumers did not including changes in inventories
tend to disappear and-competition
been c severely
Weighing the general situation, have
restricted,
as well as privately-financed out¬
buy as much of the services as
therefore, it appears that, while notably in} user-operated trans¬ will give the consumer4 better • '
lays
for
equipment
and
construc¬
they normally would out of war¬
value for his expenditure than he
Y
the
possibility of an inventory portation,
consumers " durables,
drastically curtailed
time incomes. 1 There are few de¬ tion,^ were
boom cannot be ruled out, it is housing and some services, prices received during the war, '' ''YY
YY
ferred demands to be made up during the war—from almost 20 not
iikely to develop. The danger have increased during the war, but
However, too much should not
in this group.
The two haircuts billion dollars in 1941 to less than of such a boom can be eliminated not to the full extent which would be made of prospective divergent
that had to take the place of three 2 billion dollars in 19441 Most of
by action to nip any such ten¬ reflect the free competition be¬ tendencies. The analysis of price
Y left the hair the same at the end the large additions to plant and
dency at its inception through tween civilians for the limited changes during the war demonY
•of the war as it would have been equipment in the war industries firm a
use, of
the inventory;; and supply available to them. In these strated that, in general, they make
had it been trimmed a third more were financed by the Government.
allocations
controls of the War segments a large increase in ex¬ a consistent whole. The aggregate
times. ' But accumulated .buying
Despite the high fate of capital Production Board and its suc¬
*
penditures is possible even in the level of civilian goods prices has
formation
in some fields, there cessor. ;
power will encourage increased
by-]'' ■ face of a substantial decline in been raised without that degree • spending for services as additional are deferred demands for facil¬
!
i,
Civilian. Supply
j consumer income/ This possibility of distortion which would require Y
ities to replace those which have
manpower' becomes available to
is :enhanced by the deferred de¬ a great deal more than the usual
On the supply side, the man¬
provide them.
• ::;Y'- j - worn* out and could - not be* re¬
backed
by
purchasing readjustments between-individual^ ;
power ~ and
other resources re¬ mands,
'Y'Y The larger part of consumer placed under the controls in effect
leased from the war effort will be power in the form of liquid funds prices which go on all the time. "7
; expenditures, shown in chart 6, during the war; More important," available
which
have
accumulated.
We have indicated that the area "« >
7
Yn
for increased civilian
was
approximately in line with however,* are the demands for im¬
It is in these same segments that in which changing supply-demand
production. Whether or not they
high wartime incomes. There are provements to keep up with tech¬ are fully utilized, they will jnake the time
necessary to shift from5 relationships will encourage lower - ? !
nological developments and for
■; deferred demands for some items
for an easing of the pressure upon war production and to reach a
prices over the next year or so is 7;
;
such as nylon hosiery, but on bal¬ postponed expansion. Wartime ex¬ prices. /:'-7 .•
*
v-tY;--:-.■!;.'. v -J • high volume of civilian output much larger than the ^area in
periences with shortages, and the
ance there is no deficiency to be
The increase in civilian supply will limit supply for a while. This which the pressure- of demand on
made up. * Neither were expendi- anticipation of substantially more
will be less than the curtailment will v mean- sellers'- markets
for supply will cohtinue -for «a while!*; TY
:
tures for such things as food and than the prewar, volume have em¬
of
war
production^ Under ' the such commodities until a period of The net change in the general/Y;
phasized these needs. As produc¬
; clothing appreciably in excess of
pressure of wartime demands in¬
high production has satisfied the; price level, however, will depend 77
the normal relation to disposable tion of consumer durable goods is
dividuals T were
employed who most pressing demands; It is here on what happens to costs, such as T f
income.-1}7;Y" 7 7 resumed, it .will be necessary to would not normally be seeking that continued price controls, will wages, and/dnC government^ cpn-;Y
replace working inventories all
This* is in spite of the fact that
jobs. Hours of work were extend- be necessary until full-scale pro¬ trols, including floors as well' as YT
the way from raw material to re¬
consumers
held, during the last
V - Y v. . \ ceilings.- ;
,
edj vacations- were postponed. In duction is reached;
tail outlet, Y. ?!;7v7 ly-lyT";'
,!
Y
'
few months of the war, most of
This
general, the country: worked dur¬
pressure
of demand- / on
the' liquid
savings1 which they
Business 1 holdings V of- liquid ing the war at a pace which most limited supplies will be; further
7 Frwiiictivc- CajmcUy liiflati*!! Y-Y,
assets have- increased by over 40
'! vY/,;
have today, "in addition, the cur^
■ Dekrreiit' ^ * i 7 i •
people do not wish to 'continue accentuated because producers are
rent income' which would nor-! billion dollars to about/two. and after the- war.r;V':r;,.?7"
'y.Y*;,;;7 zs-X also planning to increase their "T Deferred demands will-be im-"v
mally have' been spent on con- one-half times -the prewar level.
po»tant*:in4
some/lines-for.
sevei^l Y
Nevertheless, the postwar pro¬ outlays on construction and - for
The availability of these financial
; sumers durable goods and other
ductive capacity of this country; new equipment- as soon as ma¬ years. But in general the idom- ;
resources
will
influence
business
f restricted items was available for.
inant fact is the ehormotis produc- Y
"given reasonably full utilization- terials and manpower -'ar6' avails
increased /expenditures' in ! other judgment as to what capital ex¬
tive capacity of this country. ?Exof available
manpower, ' is -fat able,. As with the deferred con¬
fmids.
•; :YCY;
;-YYY'' r:;-/;• penditures are feasible and dfesir- above the national output in the sumer demands,1 these plans of cepting.: the- difficult period ; of Y
•/:*
These influences encouraging a abieTy-/-T Y7/vr7 / YY:-* y' /.
Y;' best
producers are- not likely to -be] transition from war production, it ->
prewar year. The magnitude
All of the influences determin¬
more thamproportionate increase
of this potential supply has gndipY
v
'id expenditures.for the available ing the actual amount of business
Ckart-7;—Digtriltflft
rfFi i
1
—1 */'.,'; 7 | Y
Y goods and services were offset by outlays after the war cannot be portant beariiig on postwaf prices.
S»u^rf»Y,
Our-ability, to produce once we
summarized
hefe.
It
is
clear,
How¬
(lef•rr AJjwitmenf f«r •
»■)■*
Y o t h e r - influences. discouraging
are over the reconversion "hump"
V
spending. 'The patriotic pressure ever, that these outlays will be
is so great that the problem posed
BILLIONS OF OOLLAIWr4
v
to save rather than spend dur- large—much larger than* the * pri¬
200?
will be one of finding- markets
vately-financed
amounts
during
|Ting the iwar, reduced quality
for any such output and not one
f; and excessive inconveniences in- the war and possibly well above
Y,
of consumers seardhihg out sources
t
Yyolved/in! the purchase of many the best prewar year. For confir¬ of
A:
supply;*-;
-YY
YY?'
T-'-*■;
Y-:'
\!
■
11 goods and/ services, - and - long mation the reader is referred to
'.<,7 j ''-j+*<-'}
It will take time to shift to thej:j working hours*:which meant less three articles in the June and July
7-'
I
f
production
of
civilian
goods.
The
1945
issues
summarizing
business
15 demand for ' goods and services
f-.v
ISO
f t connected with leisure-time ac- plans as reported to the Depart-: time"1 required varies from only a
In

summary,

,

.

.

.

'

•

•

.

•

.

-

'

,

-

<

.

'

•

"

,

'

•

•

•

!

.

.«

.

.

.

j

,

"

.

,

"

'

'

-

'

.

-

»->

Y-T

>

«.

-t

.

j.! tivities all played a part, n i

||

y

Will those accumulated* savings

ment of €ommerce.,,, In the

stages

•

the* de¬

the transition

of

early

machinery ^ and

11W hich did not/burn holfes in the

mand

'( pockets- of

equipment will be in excess of the

.consumers

during the

| • last months of the war be a more

-

for

available

some *

supply.-Tv

TTj

u

| effective stimulus to spending and
] | therefore exert a greater-pressure
[,'! on prices-* now that the/ war is

j ; oyer?;. In what ways will the off-

influences affecting the
•j 'amount of expenditure on-nondurable good? relative to current

t

j i income be modified? •
' ' :: Y "
| j J Of the influences tending to
j increase wartime spending; for
I

i

nondurable goods, the savings will

Inventory Boom Should 'Be-7
Avoided

-v. ■-:

The

•'

T:

7;,

aspect of busir
special at¬
tention. It is possible that the
necessary inventory accumulation
may be exceeded and that specu¬
lation will start in purchasing—
ness

inventory

reminiscent

a,rsituation

i

Of the influences tending to
I discourage' spending ^during the

cite

the removhl oLthe patriotic

f1 bpfeifcfe* to mcrease-the-brcssure




an

extreme; case

it will-

of rapid

expani- i

take 2 to 3 years

for. residential

-

Wfi.

NET. CORPORATE PROFITS

f: r ?

t

INCOME/TRX0
AND-. SALES.rTAXES Yi't«.

CORPORATE

construction

from the present extreme¬
ly
low
level to the
ultimate
volume indicated by the deferred
demands in that field;

There

are

some

of

the

We

are

EXCISE

-

.

,

|

Y

y

y"

y;

Also, ! businessmen

-

£

the*
structure? without becoming!"

priee

7

y -'

f\ '• £

>

4*

j;;.. i:a7. 'a %•„•}.4c •;
- f' .'T1J ;V> ■£' ;•<?f

-*!

.f

COMPENSATION OF'
"%•'
^

I

>

•

>'* -r.\'

■

-,t

EMPLOYEES 1w* ff

V

3.-C...

V
>

tliu

'■

Y> or?r/. v/7*57*'♦

7:Y'-.VY)' rl.

which' over

pehds

VY Yv;;•%

*1.

: <; •

goods„ and the' buying! power j of:
consumers are*not 'independent of
each other.- The. sapTfe- conditipnls

' a ^b'ig

•.

vY.
.

,;•*<

•* X.

: -1'-'*k98~r*r7
■!.
i., .. '•. „• r
> *
'
pr/>4i»ctlt>» «>»uping 4»PWOxlm*t»ly. tl»«^iwawsi.j»3»J»L»
-of-cxcrs*-pr()<k» hi.'
i

>

Y

1

1945-.-

•■?.■

^
.

involved in;, any - predictions as- to
the course of business i activity.
1919T This task is made somewhat easier"
same in¬
because«- the
supply of civilian

see

? a' '

/Overhead costs

attempting here to ap¬

tiipe njake for a large,
demand: will also, create a largje
supply and Vice versa.
I, ' ^
Wil§oi) D.' Stetensy "Planned Capital
It -is true* that- disposable iinOutlays by " Manufacturers,";. June* 1945;
"PlannedrOutlays. aniTPlxittBclnfcior-Majm^ { come is not. necessarily a- consiSfvsY-Nand
**■
factureTs'.b'~.ciHr.7.,'.Plann«Pf-; Outlays/.-and*1

ago:

i'W• ti 7i? 1

Pi

OF"PROPRIETORS

INCOME
INC<

NET.

100

praise the forces at work on

4-

I ; war,

.«•

industries to a
months in others/

of

flationary. demands and; disloca¬
tions of supply in international
trnue only -until large scale pro-, trade, today, as. tHere^werg 26 years

| I

matter of many

To

demand "deserves

| remain.*. The Tack -of Competition"
I j from the durable * goods' will Cop-

j i
j du.cti6n.-0i those goods'.is resumed!

'

to grow

i

fi setting;

'

few days, in some

sion

;

•

•-I'bf

hjpothetlcftl value of

-10'percent wer

•946^

'

T«t«*1-Hhirfn»tlo* '0

fraADft-^corpwrt^ proit^iH^tny-pr^orpwrFv';;

CrVy.:i

re

erttyi

r

.Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4450

Themesult was a decline in prices
notwithstanding the increase in

Chart 8.—Average Hourfy Earninga of Factory Workers and Wholesale

••"'A '7 7 7'7v ';V*Prices;of'Manufactured ProductsN

i

iV'V/ 7/:

PER

-HOUR

INDEX, 19?.6

•

100

production.!

130

Chart

r

-

*

■■I

,,

of

a

Labor

Statistics

-

Over

the

1941

the

3%.

was
SO

-

18

80

Ur:

I

'f 4d

YtttCHT SCALE)

•

'

1

I■

■

*24 '23

23

> •

'26

I

I
'27

I

1

'28 '29

'30 *31

'

I

'32 '33

J1

"

•■■■34

'35

*36

>

Source: U. 8.

up

in productivity as it catches
with the prewar trend.

1I

I
L
L—-J

'37- !38

'

-

I
I
1—1

1

*39 'AO «4I

-542
<

*

IL—J
'43

i

Incomes

hard' to

Department of Labor.

visualize

general
of goods

of

Self-Employed

less

than

15%

of

in:1941

retained

was

1930

the self-employed. The 1944 farm

income

goods and services produced in
the private sector of the economy

was

788%

above

1941.

in 1941

sation of employees. The

Allowing for the larger output in
1944 the income per unit of output
had risen by more than 50%. In¬

tion

in

comes

of

the

prices

is

approached any pressure
;
of demand will tend to show rip in
increased/production rather than
in higher prices. . 7:777!7/'Z7.77
A peacetime level of production
7 which/approaches the capacity of
•}, available manpower can provide a
/--.very large increase over the-pre¬
war standard of living* In order
to reach this tiigher standard of
.

•.living,' consumers must not only
satisfy their deferred demands but
also buy a wide variety of goods
t and services which many of them
:

never

had before.

^ f

.

changes in ways
of living. It is difficult to visualize
--the average consumer increasing
V his- consumption" of goods and
services
by somewhere around
to rapid

ineitia

50%,":v which

r

would

under conditions

be

possible

of full employ¬

ment; and still leave
7 demands : sufficient

increase
hourly wage and salary rates

since

unsatisfied

to -exert

an

1941

has been

a

little

other

of

what

age - mtra-industry V increase
in
straight-time hourly rates. It in¬
cludes r. upgrading * as % well 7 as
changes in basic wage rates. The

important than farm¬
ers, rose 28% from 1941 to 1944.
Because of the difficulty of meas¬
uring the physical Output of these
nonagricultural entrepreneurs we

increase

do not know how much their

in

the

average

pay

en¬

of overtime and because of

;

Both

from

farmers and

■

in the

number

" :•

;

an

while the- demand for their

em¬

ices

i.—Corporate

'<

1

| '

:„r

serv¬

Their in¬

increased'greatly.

proximately
through the

j

upward pressure on the general
price level. This inertia to rapid
change^ in--ways of living also
; sh'ohld* temper
iany * inflationary
tendency resulting from the desire
of' consumers to spend \ part I of' the -pressure to produce a large
their wartime savings.
< • 7
.-7 volume in a hurry all tended to
-

;

,

i.:'--

Production Costs

Shifting

to

the

view¬

point, let us see what has .hap¬
pened * during the war to all of
the factors : which'-make up the
total cost of production and dis¬

,

products

>

.

,

j

as

/■„/•'

//' Overhead Costs

y

in¬
cluding interest/rent, depreciation
A group of overhead items,

and other ?.reserves * and a.various
rfeal estate and other taxes' which
da not' fluctuate' with
business

volume;" accounted : for roughly
18.% of the .total value of private¬

meet

selling effort and
services connected with distribu¬

uctin 1941V It excludes government wages and salaries and in¬
terest on Government debt.

well

to

—^-Before Taxes

% of

'

*■

-'■.'■'

■

Million r

Billion

V'

'

'

Dollars

average

some

; ;
f,
; - J
The
net
effect of these
oil

the

"

labor

7

25. L 1

!932_

11.6

—879

1933

14.0

—592

(7.25.2.L7.-:

:

1938

L

21.5

■

24.7

V

—

V

29.7

i94i:::::::.z:z:

42.6

•

<

\

56.5

71.5

-

.

75.0

'/:■■/

In many instances the

ure.

as

in

were

i

>

it

that, because of temporary
wartime -conditions;- • labor-costs
per unit of output increased more
than wages rates, 77 7;
ZZ/Z/:'/
i By
the end of the transition
period a large part of the wartime

be

.

There

reversal

some

will

also

be

of

upgrading and
other wartime increases designed

ly. produced tgoods and services to meet the conditions of a tight
In '1941.- As a group these overhead labor market. Some of the worst
items increased - about 10% from* instances of wartime inefficiency

1$41 to 1944. Since'there was more
of an increase in the physical out¬

should ,be

put j of / goods Land services this
jpeant an' actual decline Lin unit
cost.
7
-.7V;:
i The
future cost of these items

any large

.

.

unit of output will, depend
on the total ; volume of

per

largely

business

transacted.

■

The net in¬

crease in this , unit cost/from 1941
to
1946 is not likely to - exceed

1Q.%. With a higher level of pro¬
duction

required for

even

ance

cost

on

bal¬

it is doubtful if there will be

increase

the 1941

over

man-hour. With cur¬
basic wage rates; the labor
per unit of output would be

output
rent

corrected, but

.

per

one-fifth

about

above.

1941

but

substantially below the; war peak.
,

Over

crease

1941

a

id

-longer period
labor

costs

the

in¬

relative

will be determined

to

not only

by further increases in basic wage

mod¬

and
salary;. rates but also by, the
erately good 'employment;iii* s^b- ability to'absorb tliose higher^
sequent years,'the cost per unit rates" because of increased effi¬
.

might

actually* be

less

than

in

1941.
....

;

■

Wages and Salaries

per

in the total national output

man-hour

averaged * a little
compounded,
,

..

About half, of >the total value of




About 6%

aver

>/£
<o

per

year

,

—5.7

179

—1.1

—

1,911

/;•

3,057

L

4,924

'■■;;

8,453

•'

72,224

•'

8.8

/

1.534

7.1

12.4

2,423

9.8

16.6

3,390

11.4

8.9

,

11.3

2,456

11.-4

.

5.8

1,070

' '

7

ie.8 :

11,000

19.5

14,700

20.6

15,000

20.0

3,507

■■
?

!

8.2

,

8.7

•

4,900
5,600

;

: 7.8

5,800

.:

7.7

course,

profit

as

.

provide
a
greater
net
production gets rolling.

Cost-Price Relations in the
7

Transition

;

Thus

> •■

•

This

advertisement

v\„

NEW

is

existing wage
rates, the next year would bring
a decline from the wartime peak
of

production costs. A large part
the
wartime
premiums
for
overtime, night and holiday work
of

will be eliminated. Increased

petition

will

tion

the

in

mean

of

on page

com¬

reduc--

some

incomes

(Continued

neither an o}]er to

farmers

3152)

-77.

»

».

sell

nor

solicitation

a

P-t t'hesp, securities.. t„The Qffering

0tter8 t? bny

..--.7

is■ made only'"by

the frospeptmi'yZ^.j:-

■

7;V..

ISSUE

O'SulIivan Rubber Corporation
.

■,;

production. in

1941

(A. Virginia Corporation) v.

-

,

■:

/.

,7

-.' 7

was

I 6,000 Shares" .7 7,:7730,000 Shares'

related business taxes. These tax

:'7'7*

payments had increased 30% by
1944, largely because of increased

5% Cumulative Preferred Stock And Common Stock

re¬

duction in those rates is probable
—if not in 1946, then certainly in

.7 •? •;/•
/.■« 7./,': '"Z/U;/
i,Another factor affecting % the
general price level is, the reduc¬
1947.

(Par value $100 per

share) 7/

.V-

/

r- •

7'-(Without par .value)/■

"

■

Offered in units of one share of

;

7;,:,7/;

.r; and five shares

Preferred Stock

of Common Stock

,,

'd f

.•

•>;

tion in income tax rates. Chart 7
allows for the repeal of the

excess

;'X

A. >L Y:>y

profits. tax. Even
if/ corporate
profits after taxes in 1946 should
be

much

as

as

■

/SI Price $128.50
s

per.

unit v-/7-7; 7

preferred dividends from January \

8.5 billion dollars,

only slightly below the wartime

peak,

elimination

-

profits

tax

of

would

the

-

excess

reduce .total

corporate " income '

and

little

a

lion dollars

against 15 billions

over

6 bil¬

77:77

in 1944. This would amount to less
than

5%

of the. value

---7-7 -: r7

'■"

;

:

7"

excess

profits taxes to
as

7-7-1.8,000 Shares ;
7
Common Stock:
*:;; Z
■■;•

tJL_

-(Without par value)

price $6.00 per

_;•,

share

-

7:

:

.

;

dcvpies

.of. the Prospectus may

be- obtained from the

undersigned

.

,

•/

Of the larger output in 1944. Such
tax relief does not
costs

but

it

affect; business

obviously -.makes

considerable^ difference

in

a

t.See

point

in

the

demonstration

what

Dwight

B.

of

the'latter

Yntema's

"Corporate

Profits and National Income" in the Septemhpr 1944 issue.
7

7i*i7f7 F.-Cassell & Company
..

CHARLOTTESVILLE, VA.
December. 27, 1945

7' ..7

1

77;v;:";'7;77::

of private

production as compared with 9%

*

the

under

of the total value of

ciency. From 1929 to 1941 the in¬
crease

8.4

—tioo

.

substantially higher margin of
earnings before taxes than the
for the years 1923 through
1929 and only a slightly lower
margin of net profits after taxes.
The? aggregate
net
after taxes

favorable weather.

as

Federal excise tax rates. Some

-

premiums for overtime will

:7

4.3

.—979

'Adjusted to exclude inventory profits or losses,, capital gains or losses, etc.
Bureau of Foreign and Domestic Commerce.
7, ■
>

a

accounted for by excise, sales and

appear

eliminated/

well

as

private

same

would

.5

/Source:

77'

not being produced

1941.: On .balance

>:

■

per
■

'.

7.7 7

2,878

:

809

14.1

•/'

12.1

3,033

4.2 v

•3,065

;

12.6

3,320

_

"

—7.6

1,428

21.7

-

.

5.2
-

87

15.9

7.18.6
:

14.5
13.3

974

due to accelerated mechaniza¬

tion

unit of output is difficult to meas¬

Value
-Added

3,350

18.6

■

•

in¬

cost

i

war

7

Million
Dollars

3,841

26.5

.

...

v

77

•

-

"e Of

Value
/Added

■•

■> ■'

Dollars

1939—

After Taxes

■

from 1910 to 1941. There
larger gains during the

per year

fluences;

as

changes

have been

profits.,
for the .privately produced segment of the gross: national prod¬
factors,

usual

customers' preference and by. re¬

tribution and w^at/may. happen
to >v them.; Chart
7 shows these

/

"

the

out

with¬

duction of

tion.

cost

•

scale continuous production

.

: "•

77

-•♦Corporate Profits from Operations

longer run there is the
same
possibility of offsetting in¬
creases in efficiency. For example,
the output per person engaged in
agriculture increased 68% or 1.7%

hand, costs were reduced by large

second

Table 1 showes profits both be¬

figure assumed for 1946 would be

Value Added
V";: V." :,-.L

i Over the

increase labor costs. On the other

j:

of farm output.

ume

drawn

1932 and 1941'.

Profits in Manufacturing Compared With Value

.

.

line

a

on
years

value added by manufacture." The

unit comes contain an element which
is analogous to the overtime and
product was increased further
by premium rates for overtime. other premiums paid wage - and
In 1 manufacturing
alone
these salary workers. 77■<;, 7,7?.v:
It seems reasonable to expect would be well above any prewar
premiums amounted to about 7%
year.
■";::'V 7 '.7'' /7,
,'■'•■*
of
total. wages.
They were - a that entrepreneurial incomes will
return to a level more nearly in
; Since it is for a year in which
smaller part of the compensation
transitional
difficulties
will
affect
line with the increase in wage
of all private employees including
salaried workers and nonmanu- and salary rates since 1941. The both costs and volume this allow¬
ance for corporate profits in the
bar for the year 1946 in chart 7
facturing wage earners. 7/7/v;/ /J
The cost per unit U>f product assumes a 25% increase over 1941; right-hand bar of chart 7 appears
in income per unit of output for
was also modified by a variety of
ample. Prices which would leave
influences affecting productivity. both agricultural and nonagricul¬ such a
margin in 1946 would, of
For "example, the use of marginal tural selfemployed and a -20% in¬
workers, high labor turnover and/ crease over 1941 in physical vol¬
The wartime labor cost per

.

.

fore and after taxes related to the

of

average

of

or

•

./i////I Added by "Manufacture

lS37__uI-7^.—

in¬

petitive situation. The number of
nonagricultural selfemployed declined substantially

"•

Table

profits

1941 dollar volume of pro¬
duction expected in 1946 because
of higher prices, would lie ap¬

all of it earned
operations. While

current

adjusted to

been

than

1946,

from

T.

dollars,

have

inventory

-

billion
dollars, plus income
taxes, when related to the higher

current

have ' benefited
extremely favorable com¬

paying relatively high wages. The
aggregate of wage and salary pay¬
ments was further expanded by
increase

in

billion

the whole

over

-The manufacturers' share of the

6%

groups

shifts of employment to industries

ployed.

from

was

all

9.5

/

19?4__^____—

increased per unit of output.

come

velope was considerably more be¬
cause

more

.

9.5

1923-1929

self-employed,

which in the aggregate are some¬

more

than one-fourth. This is the aver¬

the

/

Granting that human wants are
inexhaustible-there is also some
-

made up of compen¬

was

exclude

For purposes of analysis chart 7

profits

•/

the

employ¬
ment. Until that level of produc¬

inflation

!

income of

as

This

of

earned

are

losses.

the

earned

assumes

total output of goods and services

.

any

little

A

all

two-thirds

profits

but

taxes

of the
much higher output in that year.

60

'44

0&-4S-T4*

'

and services without full

.

cally

operations.

in¬

almost

some

given to
figure.

the

period 1922 through 1941. Earn¬
ings shown are before income

; Profits after taxes in 1944 were
close to 10 billion dollars, practi¬

years,

rapid

-Since

be

of

volume of business

somewhat larger
net value of

a

of

production by corporations.

.

>.* Data for-4939-44 are estimated stralglrt-time average hourly-earnftp? weighted according to the
distribution of employees hy Industries as of January 1939,
•

is

several

more

a

increased

included in the

was

tion, although

percentage

,

crease

30

«

next

witness

should

70

Hi
f

lower.

leads to the conclu¬

that the

sion

from

value of current production for
that year. This was about 5% of
the total value of private produc¬

ir Careful appraisal of all the fac¬

WHOLESALE PRICES,

¥

MANUFACTURER PRODUCTS.
RRODUl

^

•

than 6 billion

-'v//Z ■H'lV; '

'

■

resulted

should

reasonableness

forecast

a

year

in
manufacturing, chart 9 is an ex¬
cellent guide. It shows the close
relation between profits and the

value of corporate inventories be¬
cause of advancing prices and less

from

years

tors involved

\T^/

lions

were

average

:

as

profits next

corporate

mated, however, that almost 3 bil¬

1923 to
increase
in
hourly earnings relative to prices

90

Corporate profits, after taxes
before adjustment for inven¬

tory revaluation, amounted to 8.5
billion dollars in 1941. It is esti¬

30% higher in 1941 than in 1929,
but the wholesale prices of manu¬

factured; goods were 5%

the

but

striking example
tendency
because
the

Bureau

actual

consideration

national
output. The
hourly earnings in manu¬
facturing
as
compiled
by
the

100

..

..

.

Corporate Profits ?

average

no

70

60

of

total

the
r o

this is not intended

existing cost-price structure.

growth in productivity has been
greater in manufacturing than in

120

-

*;

is

8

this

of
90

profits-can be earned under the

tained in line with the volume of

100

3151

rates, and with profits main¬

wage

i

CENTS

/lr,

:

LYNCHBURG, -VA.

THE COMMERCIAL

3152

& FINANCIAL CHRONICLE

services

The Post-War Price Structure
treme

(Continued from page 3151)

self-employed.

other

and

These

changes will be only partially off¬
set

over a

costs

overhead

spreading

by

smaller volume of business.

Reduced

large reduction in
still

and

taxes

will

rates

tax

allow

a

profits before
high

leave

of

private production

in

1946 will be about the same as in

1941, the net increase in price per
unit of national output from 1941
to 1946 would be somewhere be¬
tween 15 and 20%
as compared
with the 23% increase to date in
cost-of-living index.

But

of

assumption

any

no

change in wage rates is unrealis¬
tic. The decline in war
will

lower

mean

ex¬

reductions

take-home

in

in

It is apparent

that

it

is

from the analysis

possible

raise wage

to

9.—Relationship Between Corporate Profits in Manufacturing anil
Value Added by Manufacture

Chart

(Profits Before Income Taxes, but After

In

general,

wartime

plies

Adjustment for Inventory Revaluation)

+16

reflected

was

clothing.

food and

as

for

Expenditures

the consumer's
line

in

budget, were fully
high wartime in¬

with

,/
r
contrast, "expenditures for
operated
transportation,

comes.

.

In
user

-

other

durable goods,

The

ed.

full

of demand'
prices. This
an important bear¬
ing on the price outlook. V
These supply-demand relation¬
ships at the end of the war will
be subject to strong pressures both
inflationary
and
deflationary.
impact

distinction has

There

is need for perspective in
viewing these opposing forces so
that one is not overly impressed
by one or the other. *•
•

On

the, deflationary side there
is the sharp cut in Government
war expenditures now in progress
the

Of

above

this

a

total

dollars

was

in

peace¬

roughly
v repaid
business

'

o
J,

o
if!
2

O

taxes.

personal

about 40 billion dollars.

sumer

buying

<

ply of consumer goods to be pur¬
chased. v As
the
productive
re¬

u>

i

o
u.

I

Ul

<r

a>

+ 4

f

m

ir

should

o

i

o

without

consumers

additional consumer
goods for them to buy. .;»
*
It production of consumer goods

3
ct

of

creati ng

a

a

sup¬

the

hands

the

2

r

and the

possibly
shrinkage in war
expenditures will be offset by in¬
creased business outlays for capi¬
tal goods, thus putting income in
of

third

a

I

I

con¬

become available

sources

r

;

are

8

f

?

we

vast gap between

any

>

continue

the

at

wartime

rate, the disposable income earned
in their production would increase

o

because of decreases in tax rates.

The balance of the shrinkage in
'

as

threat of inflation. Before the

that

immediate

around
the

10%

maintenance

at

in¬

wage

somewhere

consistent

are

living index

Consumers

basic

averaging

creases

cushion to deflation than

a

of

the

With

cost

of

its, present, level,,

already
savings and
expenditure
decisions—and therefore on prices
•i—was already felt. These savings
may be used to limit a decline in
expenditures
resulting
from
a

elimination of the intangible price
increases not included in the in-'

shrinkage in income. In general
they will not exert a greater up¬
ward pressure on prices than they
did during the war.
;.
v
i. In the long run, any strong in¬

less

had

war

of

most

these

their, influence

on

.

flationary

savings
age

pressure

presupposes

will

consumer

these

the

who

in

result

,

pro¬

demand will

increased

pro-*

ductioh rather than higher prices.
The analysis has shown that the

in which

areas

changing supplyrelationships will create
deflationary tendency are larger

demand
a

than the

in which inflation¬

areas

tendencies

will

persist for a
price level,
however,
may
be
determined
more by organized pressure on the
cost of production than
on
the
balancing of supply and demand
while.

in

The

the

general

market

place.
analysis has shown;that

V.The

wartime

cost-price relationships
adequate to assure all-out
production ahd to provide

were

war

large profits in
ment of

the

in

such

costs,

overtime,

tion of the
an

premiums

as

disappearing

are

production
allow

major seg¬

every

economy.

the wartime increases

of

is

curtailed.

for

as war

Elimina¬

profits tax will

excess

increase in costs

or a

de¬

cline in

prices without impairing
net profits after taxes. These sav¬
ings will be partially offset in the

coming months by the need to
spread fixed overhead costs over
smaller total volume of business.

a

Qn balance, however, it is clear
that there

is

room

for

some

in
wage rates
or
declines in prices; or both.

creases

For

in¬

some

the

country as a whole,
nonmanufacturing
as
manufacturing, it appears

including
well

as

much

others

than

more

will

be

in

a

favorable position.

%

completed,

sustained

level. Until that
limit of productive capacity is ap¬
to

afford

while

some

After reconversion is

above the prewar

tend

The average, of
producers

year.

includes

can

10%

quate when his current consump¬
tion
has
been
increased
50%

proached, increased

prewar

any

course,

from wartime
that the aver¬
still consider

against

reserves

dex, and net profits in 1946 above

verbial, rainy day more than ade¬

-■

facing

power

tant

Some

This does not mean that

+ 8

i

*

of

as a

end of the

ary

ex¬

Additional
amounts were retained as depre¬
ciation, other reserves and undis¬
tributed profits.
The remaining
disposable income of individuals
earned
in
war
production was

o

i

in

perhaps

were

Government

the

and

1944

dollars

level.

billion

20
to

earned

incomes

production. Government

billion

70

shrinkage

corresponding

consumer

time

<

in

reflected

not

was

and

£ +12

housing and

services have been, restrict¬

some

penditures in

;•

most

nondurable goods and some serv¬

war

U.

of

sup¬

increased

in

prices for such items

in

_»

limited

on

accumulation

funds in, the hands of
will be more impor¬

consumers

effect

full

the

demand

the

spendable

ices, accounting for well over half

the absence of a large
decline in living costs, naturally
present a persuasive case for labor
to press for wage increases. The
free play of supply and demand
will be modified by the
action^L
organized labor and by public
opinion,
particularly
as
public
opinion may coincide with and be
implemented by Government pol¬
icy.
Viewed
objectively,
there
seems a strong probability of fur¬
ther increases in basic wage rates.

production

lessening of the

a

to

paying civilian jobs.

These
pay,

Again using existing wage rates,
and assuming that the physical

the

the return from war industries

net

earnings.

volume

of demand on the
of labor. It also brings
about,
however,
reductions
in
earnings through loss of overtime
and other premiums and through
pressure

supply

Thursday, December 27, 1945

high
volume
and
a
catching-up
with ..'the ; normal
growth in productivity will make
possible a larger and more gen¬
eral wage increase or a greater de-i
cline in prices. Until that increase
in output per man-hour has actu¬
ally taken place, however, manyproducers are not in a positiop to
absorb
out

this

larger increase with¬
it along in higher

passing

prices.
Viewed

quite - objectively," it
probable that increases in
wage rates in. the coming months

seems

will be of the order of

which

will

cost of

its

to

serve

living at somewhere

present level.

obtain

elimination

ible

near

Consumers

will

for their dollar than

more

they did during the
of

magnitude

maintain the

priqe

of

because

war

various intang¬

-increases,

but

any

change in the general price- level
will not be large
enough to be
labeled

either

tion.

inflation

'

defla¬

or

•;

■

Because of the immediate
pres¬
sure
of deferred
demands, there
is

need

to

firmly

hold

during

the

price

the

life

front

of the
key to the
price outlook, however, is produc¬
tion. The danger of a
spiral of
rising prices exists over the next
,

Price Control Act. The

few

months

only because of the

time involved in

converting to the
output of civilian goods and serv¬
ices. ?■',o■. -'v.,.

^Looking beyond 1946, the
nitude of
—far

mag¬

productive capacity
was
produced

our

above

what

and consumed in the best
prewar

year—is the fundamental
tee

guaran¬

against the possibility of

fur¬
price
level. When
thisproduction is
fully utilized, and the most press¬
ing deferred demands are met, the
problem will be one of finding
ther

marked

markets

rise

for

all

in

that

rhines, and factories

a

the

farms,

our

turn out.

can

total disposable income can. result
in a reduction from the abnor¬

■'<

mally high rate of wartime saving
a cut in expenditures
consumer goods. Those savings
ih 1944 were perhaps 25 billion

1X1

rather than

for
-4

40

20
VALUE

ADDED

BY

80

60

-

.

MANUFACTURE

(BILLIONS OF

DOLLARS)
D0.4S-745

'

Source:

rates

U. S.

and

still

keep the

Fof the purpose of this
chart 7 assumes for 1946

of

cost

at its recent

level.

analysis
an

total value of private production
23% highef In 1046 than in 1941.
is

assumed

the

Same

thetical
1941

to

physical volume

to

as

.

in

increase
1946

is

*y

1941, the hypo¬
Hi
in

-

prices from

line with

the

reported increase of 23% in the
cost of living index from 1941 to
the end of the war- Such an in¬
in

crease

wage rates would still
for the large profits indi¬

allow

cated, and allow for elimination
of all the intangible and immeas¬
urable wartiine increases in prices
"which could not be included in the

index.
mis

10% is necessarily a tougli
approximation. More importantly,
it

is

an

salaries.

average tor all wages and
It recognizes that some

industries

can

afford

a

larger increase while others
a

less

much
are

in

favorable position to raise

wage rates without

raising prices.

The variation for individual com¬

panies will be
To

cite

one

even more.

extreme

-

as

the

part of the

total value of private production.
Since in this instance there




matically increase prices.

normal per¬

:

Relationship

i:

The
one

year

are no

1946

is

a

transition

which will not afford the full

impact of lowered unit costs that
with

comes

will come
full

high volume.
That
after production hits its

real income of

employees, work¬

ers, and consumers. There is every
reason to assume that the neces¬
sary increases in productivity will
occur to
make possible a larger

increase in wage rates Without an
increase in cost per unit of output.
to

prices

glance at chart 8 will
emphasize that such in¬

in

creases

wage

rates relative to

(Continued from page 3130)

or

Deflation?

In

summary, there has been a
general and substantial advance in
the prices

of almost all civilian-

type goods during the war. The
exceptions are due more'to the

stability of

some

prices

than to wartime controls. Careful

analysis

does not disclose .much
than
the
usual
disparity

more

among

gest

,

individual prices,

the

need

for

or

sug¬

major adjust¬
ments to bring them into line.v

above the war¬
result

in

an

in^

vicious

as

in

passing

a

earned

incomes

unsocial practices of some of these
trusts
or
monopolies
were
so
to dall fof correction by

law,'-, One of

Our

great

proved and legalized by decision
the
United .States
Supreme

of

Court

based

the

upon

Sherman

Law.^

;;

...

.

that production. Thus it will affect
the demand for those goods as

troubles in this democracy is that
we believe we cure evils by mere¬

ternational Harvester and .United

well

ly passing

States Steel

the supply.

Similarly any
shrinkage in production for civil¬
as

ians will

mean

a

decline ih both

buying power, and supply.,
This

loss

of

income

earned

,

in

production does mean, how¬

that there will not be any
such excess of buying power over
the available supplies as existed
during the war. Declining war
ever,

production releases resources for
expanded civilian supply along
with the decline in consumer in¬
come.

the

Where prices at the

war

end of

reflected the full impact

of demand oh

supply the implica¬

tions of a decline ih demand and
an

increase

in

supply should be

clear.

inflationary side

deferred
Inflation

will

the

in

On the

possible.

are

level

time

........

production over the
longer period is the answer to the
requirement of an increase lft the

serve

of civilian goods

war

stride.

Increased

Another

Any increase in the production

crease

Longer Run Price-Cost

inherent

case,

amount pf the allowable average
increase is held down by inclusion
of domestic service

other costs of production, any in¬
crease In wage rates would auto¬

aver¬

age increase of 10% in basic Wage
and salary rates. The result is a

Since the total

more

a

centage of the smaller income to
be expected in 1946.

Department of Commerce.

living index

dollars above

demands

Tor

are

the

durable

goods and the large accumulation
of unspent war income. They will
serve
to
maintain
the upward

prices foif these goods
until large volume production has
pressure oil

satisfied

the

most

pressing

re¬

quirements. Since wartime prices
for these goods did not reflect the
full impact of supply on demand,
some restraint ott prices Will be
needed
Until
production
gets
rolling.
In

r

most

-

♦'

...

•

nondurable goods and

the

a

law.

We forget that

administration

of

a

law

and

the' experience

under a law are
what really determine its effect.
.

And

so

it

was

with the Sherman

Anti-Trust Law

which Was passed
ih 1890 but which feally did hot
make any sense until it was inter¬
preted by the courts of the land.

The Sherman Anti-Trust Law
one

was

of the most sweeping laws on

the books.

By its Very all-inclusiveftesS, it has done far more
harm than good. Such harm has
come because public opinion has
hot

understood

been
and

how the law has

interpreted
it

certainly

by

the

courts

has, not under¬

stood how it ought to be admin¬
istered. For instance, the Stand¬
ard Oil case which was decided in
1911 did not disband the Standard
Oil

Company because it Was a
monopoly.
It did disband it be¬
cause
the
management of the
Standard Oil Company Was shown
in their operations to be unprin¬

cipled, arbitrary and ruthless. The
fact

is

that

United Shoe

companies

like

Machinery Co. which

controlled over 99% of aii

try
as

Which is as near

any one

the

a

indus¬

monopoly

could achieve was ap¬

And

in other

so

Supreme

said

longer

an

In¬

Corporation where the

Court

States

like

cases

of; the

that

United

size

mere

is

no

offense. There, are many
more ways in wbich. it could be
shown that the Supreme' Court
stands for reasonableness and de¬

regardless

cency,
trust

or

70%;

.

of

whether

controls

group

In

99%

a

or

certain

cases
like the
Trenton Pottery case, a small
per¬
centage were condemned for in¬
decent practices, v Price mainte¬

nance

about

fair

even
as

per

which

se

result

a

of

came

decent

operation has not been

demned.
It

is

firm

my

conviction

the United

States

Justice

its

in

and
con¬

•

.

that

Department of
Anti-Trust policy

today stands clearly across the
path of American progress and
prosperity. This is not to say that
either

Tom

Clark,

Wendell

Berge,

not two of the finest

would

mean

to

States,

care

say

to

is

men

meet,

that

or

so

unformed

whom

What I

American

public opinion has been
formed

or

his

Assistant in
Anti-Trust Laws, are

Charge of
one

Attorney

the

General of the United

so

mal¬

with

re¬

spect do the Anti-Trust Laws and

(Volume

-162

"Number 4450

THE COMMERCIAL & FINANCIAL CHRONICLE

particularly

are our Congressmen
badly! informed 'that: we have

so

paid

and

about

are

to

the

pay

penalty of defeat in winning1 the
peace, if we do not learn
quickly.
The ;Anti-Trust

used and are

.knowingly
political
the

Laws

as

as

in

Laws

unknowingly,

club

the

over

as

heads

businessman

m.uch. interest

profit.

are

been

being used, whether

or

American

has

have

in

The,

■

a

of

who

progress

Anti-Trust

a

political club particu¬
against the vast group of

larly

smaller

businessmen

survival

and

in

sustenance

lies

only hope of

our

growing

great nation.

The

as

a

problems

whose

*

the

continuing and
of

full

employ¬
ment, the problems of prices, the
problems of markets, the
prob¬
lems of research,
particularly in¬

sofar

the

as

cerned,

can

successfully
his

fellow

not

;

little

is

man

con¬

only be carried on
in cooperation with
businessman > who is

big enough to do what the big
can do.
But the sweeping

fellow

language of the Sherman
still

Law

is

being used to prevent groups

of little
people in business from
getting together to stand up to the

competition

large
has

units

never

the

and

in

of

the

the
all

must

we

solve

our

American

attention

the American people.
when

the

industry. This
brought clearly to

to

nor

of

an

been

attention

Congress

practices

In this day

sit

common

of

down

and

problems

to¬

gether,

there is this; law which
"THOU SHALT NOT."

says

Even

y

in

various

competition

.

basic

industries

ment and steel and

sweeping
Trust

between
like

ce¬

aluminum, the

language

Laws

of the. Antiinvoked to keep

is

people from working together
that
,i

they

either

can

solve

so

their

-

common problems or at
least at¬
tempt to deal'with them.' r
;

■K;

In

to the direct
Question

ans wer

as

;to "how the investor is inter¬
ested in the Anti-Trust
Laws, it is
-

fair to say that his interest is
very
vital, particularly today. The great
3esson of this war was that we all
worked- together/ and
able to do the
front
;

>

job of the home
production—which had

on

much

as

thus

were

do

to

of

with

the

winning

the-war as did the effort of
those who used at. the
battleffont
What civilians made and created.
,

f In the first place,

wasteful com¬
petition in peacetime is just as un¬
thinkable as; wasteful
competi¬

"r/

I

tion

.

v^as

time.

.

!• *

■

I'

unthinkable during-war¬

We dare not lose the
peace

have too much at stake. The

♦—we

ture industry to. provide for the
divorcement of the motion picture

companies from the operation of
theatres. The motion picture in¬
dustry has been in litigation for
years-and years.
The litigation
seemingly never ends. In the final

analysis, the
ation

be

must

of the situ¬

economy

adhered

to.

There

is

ducer

but

at

cost

a

in

working

people to work to¬

show

be

the

about

makes

same.

great

a

of

prosecuting a big com¬
big companies. Really, it
prosecuting many hundreds of

decisions

the

over

last

35

years,

whether

a

group

proposition

was

public

whether

to

as

interest.

the

nbt serving the

group was or was

lions

stockholders.

of

Trust

Laws

The

Anti-

As

matter

a

of

-,This

and
its

Counsel, is making it one of
policies to see that these Anti-

ber

of

Sadi
De

the progress of mankind/;
We know that there could

of

their

speculate

.

most*; unfortunate

willing to

are

and

money

small business.

to

start

The small busi¬

is not protected by the pres¬
ent enforcement of the Anti-Trust

ness

full

is

kind

of

another.

bombs

of

one

the

the

firm

tire

Zenker

Today, wages and prices are na¬
tional problems.
They cannot be
treated on a piecemeal basis. It is

disease and nutrition—all of these

question
be

even

wide

of

whether

treated

basis

they can
industry¬

an

on

in

steel, for, ex¬
ample, if all other industries can¬
not
get together to solve their
problems.
In certain industries,
laws

have

as

been

passed to permit
industries to work together but
these industries have had politi¬
cal

"know-how"; like

milk and

there is

all industries

no

coal

and

reason

why

not in that same

are

category.'
A When

make

•

we

the

called

were

upon

effort

greatest

V';;':;7v

in

to

our

history during the war, the AntiTrust Laws had to be suspended.
The Sherman Law which is typi¬
cal

Anti-Trust

the

of

Laws

says

the

language makes
every time that
you as a shoe dealer sell a pair of
shoes, to that extent you restrain
trade «by taking ;that:\particular
shoe: buyer out of the market.
The purchase of a pair of shoes is
a'contract in'the legal sense. Any
one &s a layman can/therefore see
because

that the rule of

reason

had to be

from

retires

Co.,

from

effective

on

Hentz

31,

his

withdraws

&

Co.

privilege

to

as

of

act

as

partner

and Howard B./Dean and

C.

Noble, member of the
limited partners, will

Exchange,

withdraw from Struthers & Dean
of

as

Dec.

Albert

31.

Ulmann

retires

from

partnership in Sulzbacher, Gran¬
ger & Co. on Dec. 31.

John

from

R.

Wechsler

partnership

Dec.

31.

Walter

H.

will

retire

in Wechsler &

.•

Rudolph
Silberberg

H.

Talbot

Lauer

from
Co.

&

Laband

will

retire

partnership in Wertheim &
31.

Dec.

on

William

A.

Barron, Jr.,

retires

from partnership in White,
&

Co.

Weld

Dec. 31.

on

.

and

many

cannot

more

dealt

be

with

successfully unless all peopjy can freely and fully work to¬
gether to see how they can be
solved.
The
present Anti-Trust
Laws make
the

no sense

Government

They only make
courts
and

as

interprets them.
some sense as

the

have

interpreted them—
interpretation is on a

this

case

longer,

any

by

it hard

basis

case

to

makes

one to venture
They only make
sense if they really promote com¬
petition.Certainly, it does not
on

any

from

Dec.

31.

;

to

reason

that

"A"

unit

industry which presently

trols 1% of the business of anin-

dustry

company

successfully-continue
operation against a
that has 50%. Businesses

and "C" the Anti-Trust Laws con¬
demn to .death.

The small

*•;
businessman is grad¬
;

ually being destroyed and he will
be destroyed
by the Anti-Trust
-

Laws.

We /organized a
War'Plants Corporation

Smaller
and the
press is constantly full of speeches
by Senators and Congressmen to
help the small businessman when
the small businessman can only
meet the competition. of the big

E. Norton

will

from

Hornblower

on

,'> '

>

ton,

will

become

effective

a

general

Jan.

1;

Weeks

partner,

interest

of

the

late

;%:"■%,yy

Theodore
from

&

Weicker, Jr., retires
partnership in E. F. Hutton

Co.

Dec. 31.

on

Harold

7

,

By Blumenthal

;

will

withdraw from Robert J. Levy &
Co. on Dec. 31.
■
"

Henry

will ' retire

Siegbert

/

from Lewisohn & Co.
Edward
from
&

M.

withdraws

partnership in D. T. Moore

Co.

on

Dec.

.Nicholas

Co.

Dec. 31.

on

Brown

on

-

G.
from

31.

"V

.

'

,

Roosevelt

will

limited, partner¬

H. Newbold's
Dec. -31. > /
W.

1, Henry

>

Grabosky,

Son

&

;//L\:L7

member 1 of

veterans to go into business.

We
have-poured many millions into
helping small business. All of this
is - taxpayers'; money r and % the
money of
investors.; Unless the
small

businessman. has

a

chance,

general part¬

a

effective Jan.

ner,

Herbert

R.

1.

;

Johnson,

general

partner in Orvis Brothers &

will, become
of Jan.

Walter R.> Herrick,
limited
partner in the firm, will cease on

Dec.,31.

limited partner in Laird &

a

Co., will become

with¬

&

Henry H. Silliman of Wilming¬

re¬

Co.

Dec.;. 31; Edward O. McDon¬
nell, limited partner in the firm,

can

its method of

&

on

in

con¬

Holsapple

;

Richard

draw

the outcome.

stand
an

get

which

tire

ship in

case

Co.

D.

Stern,

Floyd

re¬

Co., effective Dec. 31.
Douglas C. MacCallum will

pete. Now this group of "A," "B"

sense

will

&

Daniel H.

&

alternate for Richard P. Limburg
on the same date.
Howard J. Nammack, general

Blumenthal,

and

pointed out in 1911 in the Stand¬
no

same
.

Weitsman

withdraw

1.

Lerner

ceasing

in

;'._Vv;',■

withdraw

ard! Oil

the

on

Gimbel

Pam

trade is liereby declared unlawful.
The fact is, as the Supreme Court

contract,/ combination
conspiracy in restraint of

and

Interest

Colwell

31.

"A," "B," "C," etc., are now pre¬
vented
from getting together; if
they represent 20% of 1 the busi¬
ness so that they can really com¬

that I every

cease

H.

from

will

a

Henry
from

Co.

ity problems, problems of health,

■■

G.

;

;;'■!% ■!;;•:j j'

V:;- iV.

will

Herbert

A.

clearly destructive of small busi¬

on

Dec. 31.

on

Edwin

date.

Dec.

ness.

M.

partnership in Good-

late

The wage prob¬

or

Subhi

in
Dec. 31.
member of

W.

from

lem,!, other labor problems, the
pricing problem, the social secur¬

Laws. In fact, such enforcement is

and

general partnership

George A. Robinson will with¬

The whole world

atomic

Froelick

body & Co.
not

have been any atomic bomb pro¬
duced if the Anti-Trust Laws had
stood in the way.

McGuckin, mem¬
Exchange, will retire
partnership,
and

West,
the Exchange, retires from
Filor,
Bullard & Smyth on Dec. 31.
draw

*

D.

Samuel

be

is

F.

Coppet & Doremus,

practice should
sense not legalism.
.

amended as to

retire

Dec.

the

from

Trust Laws

so

will

limited

Louis

avoid their further use for politi¬
cal purposes or for interference in

are

Nelson

S.

Stamm

Dec. 31.

partnership in Cowen & Co.

from

or

be

M.

L.

of Jan.

as

Samuel

Dec. 31.

on

Benjamin

competition

unfair

those investors who

a

Vice-President

am

Scribner

partnership in Burn-

Dec. 31.

on

to

should

monopolistic
common

I

Arthur
from

used

eliminate

;

which

ham & Co.

on

not

01;' was

for

mil¬

The New York Stock

A.

fact, THE INVESTORS LEAGUE

cases

_

from limited

the

is

some

Dec.

on

partner in Newburger &
•

laws be amended in line with

to

pany or

thousands and in

a

Joseph H. Fauset retires from
partnership in Singer, Deane &

used

are

violating the Anti-Trust Laws not
on
technical grounds but on the

would

Exchange, will retire

as

Hano.

Exchange
following firm
changes:
Marjorie L. Bratter will retire

laws

which would place the accent

Government

31

keep the people from working to¬
gether. I have suggested that the

These

no improvement in the situation
by divorcing the theatres from the

ysis

Exchange
Weeky Firm Changes

has announced the

gether.

motion picture companies because
the stockholders in the final anal¬
The

the

New York Stock

standards and in progress.
The great need in this country

is for all the

3153

a

Co.,

limited partner as

I.;-';"//:/'■'■'/':V" ■-/

Interest

of

the

H.

Lewis

late

Parsons in Graham, Parsons & Co.
will

in

Dec. 31.

cease

./John

E.

Scheffmeyer

Dec.

;

Scheffmeyer,
&

Co.,-died

:>/■'/.<:

16.

partner
on

-.v,/-

■

Privilege of Archibald Douglas,
Jr., to act
of the

Burger
be

as

alternate

on

the floor

Exchange for Van Vechten
Pershing ;&

of

withdrawn

Dec.i

privilge:

28,

Engeman to act
Louis

B.

Dec.

on

as

Froelich

„

withdrawn.' /

of

Co.,
31.

will
After

Harry,

alternate
will

also

-V-v

R.
for
be

' ■]

Bilheimer Returns to
•

-

.

■

f

•

v

••

Wahler, While SC«.
;

KANSAS CITY, MO.-:William

on
the basis of fair competition E. Bilheimer, Jr., has returned to
easily be lost if, for in¬ laid down
by the Supreme Court
White > &
Company,
stance, the steel industry or the
with;, his larger competitors by Wahler,
by. reading into the law the word
automobile industry or any of the
/'unreasonable" so that the law .units !b,y -being able to get to¬ being able to work with his fellow Dwight -Building, • after . serving
many thousands; ofv industries we
small competitors, we. are wasting with the U.- S. Army. Prior to
really now.reads "every unreason¬ gether with other similar units. "1
have -cannot
work "together
to able
contract,!. combination and
a
great ; deal of the taxpayers' joining the armed forces he was a
solve f the 0 labor
;
We
have
been
and
are
going
to
problem on; an
conspiracy in restraint of trade is
pour out; billions of dollars to help
money.
vice-president of the firm,
.s;'
industry-wide basis. Certainly, it
.•',%!'*"
hereby declared unlawful."
The
is far more,important to have full
fact is; as pointed out then, that
employment and a constantly ris¬
wherever and whenever we have
ing standard of living with se^
faced an emergency, when people
This advertisement is not, and is under no circumstances to he construed as, an offering of the
curtiy and industrial peace for all
have to work together, the Antiv/ 1
following securities for sale or as a solicitation of an offer to buy any of such
/
concerned than it is to have
any
Trust Laws were put in cold stor¬
securities. The offering is made only by the Prospectus.
other
singleJjM4|O*kC0uld think age. These laws put pressure on

peace can

'

r

•

of.

A:vh;eaiT^W<jnfSl|pi* in

economy

can

together.
are

The

working

Anti-Trust

constant threat and

a

the

only, be created by

all parts of the economy

Laws

are

con¬

stantly-standing in the way of
that being done.
Therefore, in¬
vestments are not only jeopard¬
ized

often

are

not made

of' fear

Without

investment,' employment

as

•'

but very

because

not created.

'

Of

prosecution.

.

Another

great problem is the
fact that the stockholders' money
is
wasted
by
endless,
needless
harassment
tuted

and

litigation

insti¬

by the; Government not for

the purpose of really

certain

American

businesses

so

that they are restrained from

ing things which

are

in the inter¬

ests of the American

The

people.
fact is that today more than
the

ever

American

people must work
The labor unions must

together.

work with management.

great field here for working to¬
gether to solve many problems,
especially through a whole indus¬
try. Most people in business, un¬

circumstances, have

objection to raising wages
it

as

too

uniformly

is

done.

have

to

every

ope

of millions of dollars in

Electric
Company
and
others
which, if successful,-might mean
that lamps would cost the Ameri¬

money are
can

time and

being spent by Ameri¬

business to carry on litigation
never be successfully

which could

carried

through

the

courts

but

which have been instituted by the
Government
to
force
the
com¬

way.

'v /•'•V
recently
suit against the General

Government

brought

a

has

public considerably more than
they do at present. The fact is that
cost of

the
has

lamps in this country

reduced

been

from

60%

the

ginal producers could be put back

instance, there is now a
trial going on in the motion pic¬




per

Share)

Price $25.00 per

Share

(Plus accrued dividends from December 1, 1945)
Copies of the Prospectus may be obtained from such of the undersigned only as
are registered dealers in securities in this State.

Paul H. Davis & Co.

/

in

the

la^t 20

years.

The

Government is suing so that mar¬
into
in

business

money

to

at

the

not

only a
American

Watling, Lerchen & Co. First of Michigan Corporation

to

90%

For

(Par Value $25.00

can

panies to choose the easiest way
by compromising, even if it hurts
stockholders.

,

his

go

own

The

5% Cumulative Convertible Preferred Stock

are

big, too varied and too diver¬

sified

Woodall Industries,

no

long

as

-We

proving any
issue but because it make
good political reading. Hundreds

great

$2,500,000

There is

a

der certain

"

V; -W":

do¬

cost
pro¬

Hornblower 8c Weeks

A. C. Allyn and Company
Incorporated

THE

3154

remain

always

Interest Rates and ! Inflation
"Cart

The

(Continued from first page)
Therapy
of
discount
rates—the
As far as the actual policy is
rates applied by central
banks—recommended itself as the intended to be an anti-inflation¬
classical and traditional policy of ary
policy, it concentrates ex¬
central* banking
developed for clusively on the fight against the
more than a century.
It appeared symptoms rather than the causes

Raising

also

logical

the

as

consequence

business

monetary

the

of

of inflation.

cycle

to

reduce

It does not endeavor

the quantity

of money

prevailing at that time.

spendable at the markets, but to

theorists, and especially the
followers of the eminent Swedish

prevent the natural effects of the
enlarged
money
quantity—the

theories
The

economist, Knut Wicksell, were
the opinion that in order to
stabilize the price level, one had

of

only to regulate the quantity* of
and, that this, in turn,
could and should be achieved by

money;

Low interest

of low interest rates.

interest

r

indirect effects

the

entirely

gets

Before the Horse"

rates, enduring over a period of
time, raise the price of» common
stocks
whose
earnings
seem
reasonably assured because V- the
public capitalizes these earnings
at a much higher price-earning
ratio,
This means that venture
capital

between;

,

a

strong

-

spread

short-

and

long-term

analysis is not just of theo¬
So the Treas¬
retical but of highly practical .im¬
could easily pay no interest
portance,
for it leads to the per-;
at all, or relatively low interest,,
ception of what can be reasonably
to those who wanted to retain for
reasons
of liquidity bonds pay¬ expected as results of this policy
able
at
sight—and
who, now, —if. one cannot change a policy
,

paradoxically
receive
interest
equal 'to
those
on
long-term
bonds; whereas, on equally liquid
bank accounts, no interest is re¬

from
authorities

issuing
expensive.

the

money

more

Today, the recommendation

or

restric¬
discount and interest policy

the mere mentioning of a
tive

of checking inflation,

means

a

as

to
the
overwhelming
majority of economists as well as
businessmen in this
country as
almost ludicrous.
This shows the
extent to which ideas on this sub¬
appears

ject have changed and traditional
views been replaced by what in

opinion of this author must be
a
-general confusion of

the

called

minds.

of Diagnosis

Uncertainty

confusion

This

"'•V.'"

'W;

•.

begins

•

at

even

when the exis¬
tence of inflation is
questioned.
Besides much inflation talk, there
earlier

an

stage

deflation talk around;
of the divergence

much

is

and the danger

opinion is that it seems to be

of

is

OPA

The

Government.

the

in

pronounced

especially

de¬

cidedly inflation-minded, whereas
the Secretary of Commerce has

his fear

frequently- expressed
deflation.

Incidentally, this

inflation

the

Government

the

of

certainty

deflation

and

supplies

troversy

confirmation

conclusive

of

in

con¬

and

early

an

of

un¬

those

skeptics who have doubted Gov¬
ernmental ability to stabilize the
business

cycle.

It

is

that

clear

Governmental business cycle sta¬

bilization

is

under
the assumption: that private en¬
terprise can err in regards to the
future
development and
there¬
fore be prone to indulge in overoptimism
or
over-)pessimism,
whereas

only possible

that

Government

the

>

excessive

the

counteract

must

expectation of private enterprise
has

certain vision

clear and

a

the

future.

of

the first
occasion when cycle stabilization
is put to a practical test, it turns
Now,

on

out that Government officials are

subject to
ties

in

Government

their

base

known

so

on

well

as

that fear inflation

business

in

beings

stabilize the

not be relied upon.

can

Those
as

human

their ability to

cycle

uncertain¬

and

errors

other

like

that

diagnosis

as

well

is

the presence of a huge

demand and purchasing
power.
This
author
considers
this diagnosis
basically correct.

pent-up

Pent-up
purchasing
power
is
nothing else than deferred infla¬

tion,

the history of almost all

as

post-war periods proves,
who

Those

deflation-

are

minded base their

opinion on the
fear that lowering of the "bring-

home pay" would create a deficit
in effective demand.
This argu¬
is

ment

of

course

in

many

cases

political rather than scientific. It
is presented to show the neces¬
sity
for
raising hourly
wages.
Where it is seriously meant as an
economic argument,
it does not
into

take
mand
years

of
of

sion

account

pent

that

the

de¬

through
many
the credit expan¬

up

war,
the
rehabilitation

and

reconstruction

period ahead, and
the usual waste of post-war years
will
add
so
much
purchasing
to the wages of the produc¬
period itself that a deficit in
latter, even if it really oc¬

power
tion

the

be compensated
over-compensated.

curred,
and

would




standard
was

called discount

tral

the value of the
preserved, the sopolicy of the cen¬

Nobody

banks.

thinks

any

of reducing the quantity
money when
the coverage of

longer
of

bills

by

gold deteriorates.

reduces

either

the

coverage

One

Price

experience in colo¬
interest rates
threaten to lead to inflation, the
relief of business enterprises has
shown

as

be '

other

through

sought

especially through a rea¬
tax and wage policy.;

means;

sonable

re¬

quirements or devaluates.;
The
concept of a totally elastic cur¬
rency seems to have replaced the
concept of the currency of which
the quantity is restricted in one
way or the other.
It is natural
that in a world in which the supr

Fiscal Policy Versus

Economic

■

policy'.' /

.Cy /
The

Stability

by

nial countries. If low

to

low

that

appeal

immediate

prepared
-

.

consequence

of

policy must be a huge and un¬
precedented piling up of spend¬
able
purchasing power
in ;the
economy
through
money
and
credit creation.
For there will be
practically unlimited and *un-;
supply of money and
credit! facing
a
huge
demand.
Governmental
expenditures ? fi¬
a

defended

deficits will go; on
a smaller scale than
war.
Furthermore,
private enterprise and the Gov¬
ernment will proceed with huge
nanced

by

although

on

the

during

,

this

in

investments
well

abroad.

as

lieve

interest*
from
the

with Wage

country;

They

as

will -be¬

these

all

K.

a;

of wealth.
funds

are

already

j in¬

they

can

actually be invested anew arises
exclusively from the possibility
that
can

of these funds

owner

every

dispose of them

without, in¬

losses.
This again, is
caused by the preparedness of,the
Federal
Reserve System
to re¬
discount Government securities at
curring

negligible rates.
forms

that

terest

The rate of/in¬
when demand

supply for credit are forced
to balance without the additional

and

-the
for¬
called in theory the "nat¬
through

obtainable

money

Federal Reserve System was

merly

rate."
There is* no
"natural interest

interest

doubt

the

that

high at this juncture.
allow it to become
the
illusion
of :the

rate" is very
If

would

one

effective

abundance of the

policy of ceiling wages.
Such a
combination of policies was pur¬
sued
and
to
a
certain degree

It has

tremendous
In reality,

that

fact

The

firms.

would

now

the

or

logically

during the war.

rpake

indirectly, in
loans to the Government and to
directly

vested

ural

policy of ceiling prices must
be combined with the

of

illusion

the

abundance

policy of fighting inflation
with price ceilings is, however,
not consistently carried through.

achieved

to

because

Government securities will create

The

The

entitled

are

investments

huge amounts of idle funds ijeldt
in the form of cash or short-term

Instability /■..••

•

they

these '•

-

currency

be

,

.

gold

least

at

consequences.

the

ceived.

,

making the supply of credits

its

The

-

—

should

one

for

in

and

too strongly
Nevertheless,

are
toit. /

ury

/Needless to say, the return to
orthodox
financing
methods
practically unlim-. would also result in serious diffi¬
ited amounts, at least by the big
culties for banks and other Gov¬
raising of the price level.
It is
corporations of the country. Thus,
ernment
bond-holding
institu¬
generally not realized what fun¬
during
the
boom
of
the
Twenties
damental changes from previous
tions.; The long-term bonds they
in the period before the crash, an
hold would of course depreciate
policies this implies. The laws of
extremely
high
price-earning
the market which formerly alone
ratio
at
that
time - created with^ higher interest rates, creat¬
prevented price-raising are re¬
ing
catastrophical losses which
through crazy earning expecta¬
would have to be taken over by
placed by criminal laws which
tions—allowed industry to obtain
the Government in order to pre¬
penalize the raising of prices ac¬
any
amount
of
money •/* which,
vent socially and politically un¬
cording to the market laws.
The
smooth
and
inexpensive price- spent in one way or the other, bearable bankruptcies. /The re¬
strengthened the forces of infla¬
turn to a sound way of financing
fixing by means of the market is
tion.
"
is always as costly and difficult as
replaced by a very expensive and
complicated price-fixing and laW- High Interest Rates Not : Neces¬ the departure from this way seems
enforcing organization.
This, in¬
easy and advantageous.
sarily Coincident with ,
cidentally, creates the very un¬ A.-Unemployment
Summing up, we may say: the
welcome phenomenon of hundreds
inflation concen¬
The aversion to raising interest fight/against
of thousands of businessmen be¬
trates
indeed on the suppression
rates has of course its root also
coming offenders of the law who
of
the
results
rather than the
in
the
widely-held theory that
otherwise would have never come
causes of money abundance. ; The
easy money means high employ¬
in contact with the courts; this,
OPA and
the law enforcement
ment and tight money means low
because of the paradoxical situa¬
employment.
If this theory were agencies have taken over respon¬
tion in which they are placed 'by
sibilities that formerly were .the
correct, high employment could
a system of prices fixed contrary'
Federal
Reserve
Board's.
In¬
in times of a strong demand for
to the laws of the market.
credits only be achieved at the crease of the quantity of money
The reasons why neither the
is tolerated but its natural effect
price of inflation.
However, the
OPA nor any other Governmental
theory is basically wrong.
If the on prices in accordance with the
agency has
not even considered
supply of credit is kept scarce, it "Quantity Theory of Money"' is
fighting inflation by
monetary
is
true, 1 enterprises
requiring prevented. ,; One is reminded that
measures are manifold:
;,V:y7'
large
amounts " of
capital are during the high days of the Nazis,
First of all, it seems to be en¬
German
President
of the
doomed.
But enterprises requir¬ the
tirely forgotten that it is not only; ing lesser amounts of capital but Reichsbank boasted that the Na¬
tional
Socialists
had
won
a
victory
possible but natural for a cur¬ more labor can carry on provided
even
over
the Quantity Theory.
rency to be held scarce in order
only that too high wages do not
to
uphold its purchasing power render these enterprises unprofit¬ But it turned out to be a "Pyrrhic
over
goods.
Forgotten seems to able. >•; Full employment can be victory."
be the method whereby under the
achieved at any interest rate level
of

issuance

rates

opinion

public

committed
our

term interest rates;

be raised through the
new
stocks at cheap

can

Thursday, December 27, 1945

CHRONICLE;

COMMERCIAL & FINANCIAL

capital markets

disappear.
Nobody con¬
"idle" when he -re¬

siders

funds

ceives high interest on
Low interest rates

them. f;,Vv;

are—at least

replaced with a policy

been

partly—responsible for the boom
but not wages: on the stock-market and could
be determined by; be
responsible
for
additional
collective bargaining according to strong price advances—especially
ply of money is thus considered as terms.
That the Government is,* the ability of the individual in¬ if the interest-lowering is carried
unlimited/ the feeling for the ne¬ so to speak, creditor and debtor dustry to absorb higher wages still further in accordance With
cessity
of
curtailment of the in one person, because it fixes the through increasing productivity. the British precedent. These ad¬
been mentioned vances would not represent. an
rediscount rates •« of the Federal It has already
quantity of money is weakened.
Furthermore, fear that the low Reserve System, leads indeed, to that a wage-boosting policy is Un¬ inflationary boom in the ordinary
where/ people
anticipate
interest rates of the Federal Re¬ large savings, for the Government necessary in so far as it is meant sense
serve Banks
could lead to infla¬ and thus for the tax payer.
How¬ as an anti-deflation device. For higher earnings through inflated
tion has been abated by the expe¬ ever, the artificially low interest whatever reasons it is advocated, asset values./: It would be a -re¬
securities it is obvious that it intermingles capitalization boom, caused by the
riences of the Thirties, when the rates on Government
in a peculiar way with the other¬ fact that earnings are capitalized
supply of extremely cheap money create an artificial abundance on
All wise anti-inflationary policy of by ever lower interest rates.; It
did not lead to
an
inflationary the entire credit market.
It is true that creates a situation in which ven¬
other creditors—private as well the Government.
but rather to a deflationary situa¬
institutional—have
to
revise it will not create inflation, at ture capital too can be obtained
tion.
One forgets, however, that as
not
directly; however, 1 if abundantlv and at low interest
their interest claims downwards* least
this was the result of the abnor¬
This
again
means,/ of
mally
low
investment demand in order not to be excluded from wages are no longer—as in a free rates.
created by various, especially po¬ a market where they are in com¬ labor market—fixed according to course, that dormant purchasing
the productivity of the marginal
power is transferred into actual
litical, factors of that time. To¬ petition with the cheap money
day,
expectation
of
unlimited coming directly or indirectly from but of the intermarginal enter¬ inflationary purchasing power. /
prise, this must obviously lead to
markets due to pent-up demand the Federal Reserve Banks.
Frustrated Inflation
: ;
Without
wanting
to
argue a stoppage of the former^ For, if
must create a very strong require¬
In the ordinary course of events
in
the large enterprises, who de¬
whether
fiscal
considerations
ment for money
through with¬
high profits " from gigantic this would mean strong and gen¬
drawals of bank deposits and re¬ should be taken at all into ac¬ rive
eral
advances
of all
prices of
quests for new credits from the count when economic policy is turnover, labor is entitled to share
these
profits then workers will goods and services. However, as
side of business—not mentioning discussed, it may incidentally be
mentioned
above,
such general
the demand from the side of the
pointed out that the structure of just leave the smaller enterprises
and join the larger and
largest price advances have been and will
the war debt would have to be
still entirely unbalanced Govern¬
ones.
This must lead, at first, to be forbidden. This is why many
mental budget.
In such a situa¬ changed before one could return
to
an
orthodix interest policy. unemployment and thus even to people believe that all the accu¬
tion on the demand side, low in¬
whereas
could

inflation,

they

too,

enable

Treasury to finance and refinance
the Governmental debt on cheap

seems to be a
inclination to
deny the

practically what one used to call
a
floating debt.
Therefore, in
case of a marked rise in interest

of interest

prevent inflation.

there

higher interest
rates on the grounds of an alleged
inelasticity
of the demand for
credits.
One argues that the in¬
terest rate is nowadays of such
effectiveness

of

the cost cal¬
that even a
very high rate would
not deter
demand, other conditions being

minor importance in
culation of industry

favorable.

plied

derived,

is

that

the debt, es¬
pecially those financed by the
Savings Bonds A to G, represent

raising

Finally,
certain

offer

fact

rates

create

rates

terest

rates

the

To this it must be re¬

that this argument—beside

being inapplicable in industries
requiring vast arf&unts of capital
as in the building industry—for-

Substantial parts of

rates, necessitated for instance by
an
inflationary
boom,
billions
in

presented for

bonds would be

redemption in cash which would
increase the forces of inflation.

this

Obviously,
would have
the

to be

traditional

long-term

floating

debt

consolidated in

way

debt through offering

higher interest rates for truly
long-term bonds.
This might not
even mean
an additional burden
For there would

prices

fixing

to

are

wages

and

deflation

to

later

process

highly

undesirable

reasons.
are

a

concen¬

surely

do

for

many
prices
small

that

If and as soon as

raised under pressure of

business so that they too can pay
the

high

of

wages

their

large

competitors, then unemployment
the concentration process is,

and
of

course,

halted,

tionary spiral is
The

but

an

infla¬

started.

Piling Up of

Purchasing

Power

*

purchasing power can
as long as the OPA
remains in power. To this one has
to reply: First, there is no doubt

mulation of

is

that

tration

into a truly

of

to the Treasury.

of

be

harm,

no

for

certain

a

called

will

a

work.

mitted that

time what can

"frustrated
And
as

it

inflation"
be ad¬

must

long as it works ;the

ensuing prosperity is of an ideal
character, inasmuch as it repre¬
sents

prosperity without price, in¬

creases—a
as

one

"turn-over prosperity"

could call it.

Not only does

prosperity lack ,the essential
prerequisite for the development
of the depression, the price infla¬

this
In
been

spite of everything that has
said above and could be said

further, one has to reckon with a
continuation
of
the
prevailing

policy.

tion; but it would be of a com¬

Government as well as paratively long duration. The pent

[THE COMMERCIAL' &

Number 4450

Volume 162

In

being not
price in¬
creases, guarantees effective de¬
mand
for
goods
over
a
much
longer period of time than a pur¬
chasing power that is allowed to

up

^purchasing

able

to

power,

itself in

spend

push prides upward.

However*

this

"frus¬

of

sort

trated inflation" cannot go on for¬

ever—especially

in

times

peace

when the psychological and patri¬
otic inhibitions against breaking

Veiy High Frequency Space
Radio ioi Train Communication
(Continued from page 3142)
only by trains in the immediate
time when the need for communi
vicinity, and does not interfere
cation may well be urgent.
;
with normal operations in other
These disadvantages do not ex¬
ist with VHF space radio.
Com¬ parts of the division.
The advantages of a light, port¬

with

maintained
wherever the engine happens to
be located, whether delivering a
string of empties to an isolated
spur in the stockyards, or picking
up a load from a coal mine five

the price ceiling

no longer work
-strongly as during the war.
ceilings can never be ap¬
plied universally. There are al¬
ways
realms—for1 example,
the
as

Price

The

tain services—which will not and

practically; cannot be

controlled.

On these markets the

prices will

which com¬
be maintained be¬

over

can

tween

But

where price rises are

even

avoided

train

the

economy

will

prove

increasingly ^ vulnerable.
Wages
are. under the permanent upward
pressure.
The ensuing wage in¬
creases—where they do not lead
.

,

to

due to the
mand

enormous

and

It

is

in

appeared practical using the low

sive radio

a

high strung system, in which
price-cost relationship remains
tolerable only so long as every¬
thing works full blast and at high
speed.
As soon as the,. slightest
slackening in demand will set in,
many enterprises will have to shut
down because of the losses, they
very

the usefulness of the system,

will

initiating

cause,

Cycle

•

.

as

Usual

Our conclusion is:

since
great

a

part of a 100-mile division

one

a

derailment

or

contra-stjabilizing. There
will develop a situation that will
embrace, if not all, so many of the
features

within safe limits at

ing monetary policy—and- inci¬
dentally the prevailing fiscal pol¬
not

to have been
contra-cyclical, but pro-cyc¬
prove

lical and

that

usually

called

are

unhealthy, * whereas the healthy
aspects of the boom—increasing
employment—may not necessarily
be present. For it could be that
labor during this boom would tend
to be progressively
replaced by
labor saving capital investment if
the policy is continued of making
the use of labor more expensive
and of making the use of capital
cheaper. .:
Vy
Furthermore, there is bound to
develop
an
additional T upward
movement

for

it

is

*

on

the

the

stock

"victory

of

over

train-to-train

the warning

Government

if

but

VHF

or

over

the

ment.' Interest

not

are

be

terminal

proposed system requires al¬
twice the equipment neces¬

to

the

noted.
■

against depression when the forces
of this boom have exhausted them¬

terest

selves.

to worldwide inflation.

If

to

wants

one

that

such

ner

in which

prevent

depression,

flationary

a

de¬

that these will
enough, they at

agree

be

radio, the

railroad

another

even¬

same

on

locomotives

cabooses

must

one

prevent an inflationary boom.
one

wants

tionary

to

boom,

inflation'

in

prevent
one

every

an

'must prevent
form.

wants to prevent
of strong

If
infla¬

If

one

inflation in times
need for credits—by the




inevitably lead

tion.

much

praised,

in

a

of

a

mobile carrier installa¬

The

carrier

cost

of

installation,

a

fixed

on

point
the other

of

of

However, because of the prepon¬
derance
of
mobile
installatiops,

not necessitated it.

would

In view of the

prevailing state of mind, it is

very

and it is to be feared,
history will repeat itself.

probable,
that

have

systems,

using VHF space radio, will pro¬
vide speedier, more efficient and
economical

more

railroad

opera¬

With the increased compe¬

tions.

tition from trucks and airlines, we

hand,
a

the

before,

dent

that

great

a

equipping
some

and

the

of

all

are

confi¬

railroads

of

the many

To

the

'

'

Holders

This is

tems employing
we

the

will

are

majority of
use

inductive carrier,

more

even

confident that

installations

new

VHF space radio.

not an

Offer

of

Republic of Colombia
Bonds

6% External Sinking Fund Gold
DaLed

July 1, 1927, Due January 1,

6% External Sinking Fund Gold
Dated

v

1961,

is somewhat less than that

radio station, largely because
cost of the antenna mast.

and

division

cost

with

of

radio

equipping
is

below that for carrier.

still

a

well

1

■

designated in the Offer

and

Certificates

External Sinking
October 1, 1970.

for 3%

Fund Dollar Bonds, Due

NOTICE OF EXTENSION
The time within

the

above

which the Offer, dated June 5,

Bonds and the appurtenant

Colombia, 3%

coupons

1941, to exchange
for Republic of

External Sinking Fund Dollar Bonds, due

1970, may be accepted is
to December 31, 1946.
The period for

October h

hereby extended from December 31, 1945

exchange of Convertible Certificates for

3% Ex¬

Fund Dollar Bonds of the Republic due October 1,
multiples of $500 principal amount has also been extended
December 31, 1945 to December 31, 1946.

ternal Sinking
1970 in
from

be obtained upon application to the
National City Bank of New York, Corporate
Department, 20 Exchange Place, New York 15, N. Y.

Copies of the Offer may
Exchange Agent, The
Trust

the

overall

Bonds of 1928

April 1, 1928, Due October 1, 1961,

the appurtenant coupons

Convertible

REPUBLIC

OF COLOMBIA

By Carlos SanZ
Ambassador
December 21, 1945

ad¬

vantages of VHF radio over sys¬

be detached from yard opera-

~

with

communica¬

train

view

.In

we

of

than

coming year will
start towards
the

of

form

tions.

are

today

importance

ever

see

benefits

these'

that

feel

greater

freight qr passenger service, or

as easy

budgetary

situation

communication

Train

whether of the inductive type or

all types, on
the dispatcher's

the inductive carrier system

also in those countries where the

heeded.

to

help¬

tions to work temporarily as
on the main line.

or

different

but no¬
Inflation ensued,

where

Louis

ers

of

in

and

&

the removal
St.

least

«

would

was

take

basic equipment is used

the

in

same

This is not quite

location.
with

cost

cle

can

MO.—Bitting

office

N. C., and the with¬
drawal from the partnership of
Randolph H. Dyer.
William
C.
Bitting, Jr., and
Bern
Norpoth will be resident
partners in North Carolina.

advantage Of the operating econ¬
omies possible through the use of
train communication. In the Ben¬
dix VHF Railroad Radio System,

frequency
used by a railroad in one part of
the country can also be used by

the natural in¬

The arti¬

railroad

a

their

Biltmore,

or

integrated

an

LOUIS,

Co. have announced
of

compromise system is
desirable.
We feel
system using
VHF space radio alone is the most
logical and most economical man¬
any

necessary

can

est rate far below
rate

that

not feel

do

$1,622,816."

Bitting in North Carolina
ST.

We at Bendix

.

,

amounted to

; "'

"■

j

previous mortgages. Construction,
repair and miscellaneous loans

units and is still subject
disabilities
previously

for spare

of

| $1,442,712 for the refinancing of

for a mobile installation, re¬
quires twice as many precious
frequencies, increases the need

will

quantity theory" (on the markets seems to be assumed nowadays a
because of its greater range and
for goods and services) that more vicious
invention
of
creditors.,
particularly because of its discon¬
and more unspendable funds ac¬
They have the function of ration¬
certing habit of being picked up
cumulate, of which at least parts ing a scarce supply of credit among
by electric, power lines, or by
are never converted into Govern¬
those who need it. As long as one
paralleling telegraph or telephone
ment securities but seek to be ex¬
wants to avoid the step incompat¬
lines, and suddenly showing up
changed into stocks of private cor¬ ible with a free economy, of hav¬ 50 or '60 miles
away on quite a
porations.
y
ing credits rationed through the different railroad, or possibly in¬
But after this boom will follow Government, a revision of inter¬
terfering with other communica¬
a
collapse of serious proportions est fates on the upward side re¬ tions services,
as soon as a slackening of demand
mains the only method of keeping
i In the matter of cost, VHF radio
sets in or is feared. For with this inflation in check..
*
'
'
'
again shows up more favorably.
slackening of demand the cost- ■;,.'At the end of World War I, the Because of its lower power re¬
price relation and therewith the above mentioned economist, Knut quirements and simpler installa¬
profit situation will deteriorate Wicksell, wrote an article "Put tion, the cost of equipping a loco¬
rapidly. Nor will the continuation the Discount Rates Up," in which motive or caboose with radio will
of easy money give any protection he warned, that maintaining inter¬
average about - two-thirds of the
<

or for yard and
operations, and the for¬
mer, because of its greater range,
for dispatcher to train.
It is not
necessary for me to point out that

engine-to-caboose

most

increase

an

or

usual year-end and Christmas re¬
quirements of members as well as
the Victory Loan Drive.
"Estimated mortgage loans made
by the associations during Novem¬
ber, 1945, showed an increase of
58%, or $4,404,179, over Novem¬
ber,
1944,
when
total
loans
amounted to $7,652,261..
Of the
$12,056,440 loans granted during
November, 1945, $8,990,912 were
for the purchase of homes and

who

hybrid system using both carrier
and
space
radio, the latter for

in

Because of the controlled range

it

as

could

men¬

manufacturer

one

formerly manufactured only car¬
rier
equipment for train com¬
munication, now is proposing a

While I doubt if any railroad man

of VHF

again

rates

few I railroads

a

tually

and

the

carrier

that

perhaps

showed

$1,698,956, representing
gain for any month
during 1945. Mr. Woodard stated
that this slowing up in savings
during November was due to the

inductive

pure

should

I

carrier.
tion

and

1945, bringing
to $700,253,866 on
Savings during No¬

the lowest net

comparison of purh

a

radio

space

provide all railroads with enough
channels
for
the
present,
and
there is some room for expansion.

one

during the course of
history—one will face disappoint¬

The t v/ave-lengths

inductive

0.3%,

of

up

30th.

vember

em¬

increased

$91,315,227, during the

months

.

received

has been held

without serious in¬

railroads

Nov.

yard-master's office.
The re¬
quirements for spare equipments
necessary channels
to permit its is thus greatly reduced, and the
universal use. :.
;i.:- problems of maintenance are sim¬
: The
Federal
Communications plified. But further than this, the
Commission has set aside 30 chan¬ use of standard equipment in all
nels exclusively for VHF railroad
locomotives permits complete
radio, and has made provision for flexibility of use of the engine
operating in other bands on a itself.
Engines normally used in
sharing basis with other services. humping operation can be trans¬
These frequencies are being allo¬
ferred
to
terminal ;or
transfer
cated among the various railroads
switching without any change in
in accordance with a plan worked
communication equipment.
En¬
out by the Association of Ameri¬
gines can be used interchangeably
can Railroads on a territorial basis.

believes that this
method is antiquated and can be
replaced
by
other
devices—an
opinion which is not at all so
original as their ^ originators be¬
over

of

squeezed in, ;- there is simply not
enough to accommodate the

by private indus¬
try—one must make money scarce.

And,

confined to

associations

or

11

total assets

room

to eight

is

use

while

miles, because of the low antenna

heights,

un¬

operates
are
already . crowded
by other
communications
services,
and

Since

of

range

radio is only about four

lieve

markets,

peculiarity

aforementioned

the

is

sufficient
to permit
of carrier by more than a
lack

the

frequencies

terference.

emergency stop,

once.

of induc¬

The most serious

where

,,

icy, too—will

use

operating
few

other

the cpnductor or
engineer can throw a switch which
will
cause
the
transmitter
to
broadcast automatically a series of
high-pitched notes to warn other
radio-equipped trains in the vicin¬
ity of the possibility of danger and
permit them to bring their speed

with the

doubtedly
the

VHF
radio makes practicable the use of
the Bendix "Slowtone," which is
an emergency warning device that
can be used with this system.
In
the event of

The prevail¬

problems

operational

are

looked.

of

range

however,

radio,

tive carrier which cannot be over¬

or

controlled

VHF

system

any

the

.17.5%,
first

ploying inductive carrier.
So far my remarks have been

sary

Aside from the technical advan¬

with

than

New

the

of

"Savings by the general public
in

more

radio

problem, while the higher
primary power i needed for the
operation of the inductive carrier
system often requires additional
generating capacity.
V

connected

'

This

low

and

tal

Vice-President

ment says:

be

this

there

six conversations can
be taking place at the same time
in different sections
of the line
without interference.
:• \ * k

hand, five

antennas

small

tages : of

engineer

and

conductor

tween

in

division

train communication
provided for a given capi¬
investment by the use of VHF

train,

frequencies the equipment is much
bulkier and often presents a real

1

prevent the use of the circuit
by trains anywhere along the line.
With
VHF
radio,' on the other

the

be

one

this

on

can

space

can

Exactly as at the onset of
every depression, the boom will
collapse through the losses that
the marginal enterprises begin to
undergo; only that, this time not
the decline of prices, but the de¬
turn-over

becomes

engines

system, while with VHF radio
these units are not only practical

tremely simple installations, with
attendant economies. At the lower

party-line, and a conversation be¬

suffer.

of

circuit

the

30

and

frequencies and high powers re¬
quired by the inductive carrier

The

tive

York State League of Savings and
Loan Associations. The announce¬

with the considerably less expen¬

power requirements which char¬
acterize VHF radio make for ex¬

ranges

would

equipment.
In yard and terminal operations,
in end-to-end and in wayside to

:

com¬

up to 100 miles by the use of con¬
siderably higher power.
^ '
•
The greater range of the induc¬
tive system, which at first glance
might seem to be advantageous,
actually results in a reduction in

the

cline

.

claims

manufacturer

One

turnover
pent up de¬

distribution.

is

munication being obtained at dis¬
of from 40 up to 60 miles.

cheapens and alleviates pro¬

duction

.with " intelligible

tances

bearable

I unemployment—are
only because the huge

carrier

greater,

000 mark on Nov. 30, 1945, accord¬
ing to estimated figures issued on
Dec. 21 by Z. V. Woodard, Execu¬

extra

more than offset by the savings
equipping perhaps 20 cabooses

be

walkie-talkie for train crews
while on the ground is apparent.
So far, at least, no such device has

locomotives without interference.

considerably

ductive

these

of

cost

fixed installations, however,

a

^communication A using ' in¬

The total assets of the 243 sav¬

ings and loan associations in New
York State reached the $700,000,-

radio

additional

f

-';v

VHF

Associations Assets

trains

with

the main line, while

on

perhaps four or
five
wayside stations would be
required for the same service. The

.

1. verses.

communication

vide

using

slow but decisive increase.

a

N. Y. Savs.-Loan

operate with only two

anywhere

able

v

100 miles long,

a

it might be possible

carrier
stations along the wayside to pro¬

but in production.
' :
fixed station and a train
?
A
further advantage of VHF
VHF radio is relatively
radio from the technical iside is
short, and depends almost entirely
The resulting distortion of price
that
at
these high frequencies
on
the
height of the antenna
and wages—the margin develop¬
above
the
surrounding terrain. there is virtually no objectionable
ing between those that are con¬
interference
from
atmospheric
For reasonable antenna heights in
trolled
and
uncontrolled — will
noises or man-made static.
The
more or less flat country this range
finally result in just that general
heaviest thunderstorm does not
will vary from 10 to perhaps 20
raising of the price and wage level
disturb the Clear transmission of
or
25 miles.v. This range can of
which one wished, to avoid; and
course
be extended ? by locating messages and equipments Can be
which will render the economy
the antenna mast on a hill or tall operated directly under high volt¬
vulnerable and exposed % to •; rebuilding; The range of point-to- age electric wires or on electric

show

..

range

munication

to

be

can

miles from the main line.

market for used furniture or cer¬

division

a

for example,

munication

3155

FINANCIAL CHRONICLE

Extraordinary

de
and

SantAmaru
Plenipotentiary of the

Republic of Colombia to the United States

of America.

J.

'■

THE COMMERCIAL & FINANCIAL CHRONICLE

3156

under the

Tlte Menace of

and economists

writers

(Continued from first page)
been pointed out.
But, the

Declining Profits
have

ment

Thursday, December 27,1945
plan of

maxim

a govern¬

.

,

stand¬
The
portion of labor in the nation¬
al dividend
tained

should be main¬

and

increased, and
profits should not be obtained
at the expense of labor.
No
economy could long endure
and
make
progress
under
such
a
system.
But when
wages and other production
.

costs, such

taxes and

as

warranted restraints

mentation,

un¬

of regi¬

artificially
boosted
so
as
to
steadily
lower profit margins, labor,
capital and management alike
are

•

will suffer. The boat in which

all are travelling will be sub¬
merged.
One cannot exist

'-'A

without the others.
A

century

or

more

economists / and

.

y

ago,

statesmen

preached the necessity of a
high profit margin as a means
of

promoting and maintaining

national

prosperity.
The av¬
of profit or return
capital investment was re¬

erage rate
on

garded as a standard of pros¬
perity, which could be used to
ascertain

the

comparative

state of different countries

of the
ent

or

same

country at differ¬
periods. True, many, like

Sir William
Sir

Robert

Petty and the late
Giffen, stressed

the

presence of physical
wealth and natural resources
as

a

comparative

gauge

of

economic power and
prosper¬

ity, and neglected the import¬
of

ance

the

productivity

effectiveness

and

of

becomes

more

mature there is

natural

that

falling

not long endure.
prosperity ' can

Netherlands"

that Holland

when

cease

a

continuation of

accumulate under

to

a

enterprise systemwhen profits approach
the ;
our economic
life could not vanishing point..
be operated profitably by pri¬
Let Mr. Wallace and others
vate enterprise.
It is not the of his ilk, who offer the politi- :
bait
of
problem of monopoly control cal
"Sixty-Million .
or of concentration of
capital Jobs", and "Jobs for A11", re¬
which is the main motivating
gardless of costs and taxes,
agent toward adherence to take heed of these words. Or

private

.

of systems with

a

he

then

the

twenty-year record

means

of

as

judging J what

on

stock money

a

its
need

Preferred, last remaining issue of
politi¬ welfare?
that company on the Big Board,
; The answer appears plain! is
purely* a liquidating issue, the
in Great Britain because the
Briefly, everything should be property having been sold to the
Labor Party has come into done
within
the
limits
of City of San Francisco some time
'
power
with a program of equity and physical possibili¬ ago.
"nationalization"
mayun¬ ty and under a condition of
Bache & Co. Reopen
doubtedly be ascribed to the democratic
opportunity
to
feeling that inasmuch as pri¬ foster the ; profit incentive. Miami Beach Office
vate operation of industry has This does not mean that en¬
Bache
&
Co., the New York
become unprofitable, govern¬ trepreneurs - and speculators Stock Exchange firm, * has reopened its Miami Beach office at
ment operation is inevitable. are to be
given a free hand. 2469 Collins Avenue. Ben PtichIt is not
surprising, therefore, It does not mean a return to ard is manager'. Also associated
that
the so
called "middle complete •'laissez-faire''.
But with the new office is Sam V.
-'V
class" and certain capitalistic it does mean a modification of Silsbee.
The previous Miami Beach of¬
groups are found in the ranks restraints, regulations, regi¬ fice of the firm was closed in 1942
of the Labor Party. The same mentation and all the other when the
Army Air Forces recondition prevails, to a con¬ handicaps to enterprise and quired the space for training pur"' :,' " V'-'V ;
siderable extent, in France, risk that have come out of the poses. ■
where nationalization of lead¬ war, or have resulted from
Graefe & Co. Resumes
ing industries is the inevita¬ political action taken under
DES MOINES, IOWA —Harry
ble outcome : of, progressive the false theory that a par¬
B. Graefe is resuming the investprofitless private capitalist ticular group in the economic ment business 'after his release
operations. This has been in¬ processes, by which the com¬ from service in the U. S. Army.
there has been

<

i

so

little

cal and economic disturbance

because the rate of prof¬ to be.
In contrast with the
it was declining and was tend¬
earnings record of these corpo- dicated since the " last war,
ing to a level which did not rations since 1925, Mr. Wilson when several of the railroads munity lives and supplies its
induce men to
engage in com¬ cited a "quite different pic¬ of France reverted to Govern¬ wants, should be unduly fav¬
merce
or
ored at the expense of the
industry at home, ture in the last three years," ment operation, because
they
but rather to seek investment which showed
other groups.
that average could not ber
profitably op¬
"elsewhere. Similarly, British
earnings of the group of com¬ erated by stockholders even
It has long been an economic




Permanent %
come

..

passing the peak of its great¬ earnings
ness,

«

"

J

,

rates

was

*

only i
capital %
accumulation
and
improve- ment in the productiveness of
its use. Certainly, capital will
from

•

'

the

1

Uliliiy Securities

20-year earn-i
profit in .any country, what¬ ings record of 1,300 leading
ever the cause, impeded or manufacturing ; corporations,
reduced capital accumulation Mr. Wilson said that their
and was an
augury of indus¬ earnings on money invested
trial and commercial
decay. in them averaged 8.2%, com¬
This was pointed out as
eariy pared with 7.7% earned in
as 1675
by Sir William Tem¬ the same period hy the tele¬
ple, in his "Observations on phone company. He offered
states

over the last century
have shown an almost steady

>

tendency for the
profit to decline. > But decline compared with the
this tendency
is offset, by amount of capital invested in
more
steadiness, and certain¬ them. And this is undoubted¬
ty of profit, and, with an ex¬ ly time of earnings and invest¬
pansion of total profits that ment in other leading British
collectivism.. It is more a case we will be next on line to an
accompanies the growth of industries, notably coal and
of progressive decline in prof¬ enforced
adoption of socialism
capital.
Thus, it is not sur¬ textiles. The situation has not
its, arising in part from com¬ under a static or decadent
prising that the average turn¬ gone without notice by Brit¬
over
profits of department ish statisticians and econo¬ petition itself, and in part, economy.
from public policies, which
stores is less than 3% or that mists.
It is just as much re¬
restrict and diminish profits,
the United States Steel Cor¬
sponsible for the economic that this transition which is Public
poration maintains its profit plight of the United Kingdom
(Continued from page 3134)
now
taKing place in many 11 over-counter, reported earnings
rates have been' progressively as the set-backs due to wars
last
parts
of
the
world
is
year of $2.96 a share (interim
regarded
declining to the vanishing and loss of foreign investment
as
non-revolutionary or as a figures not available). A divi¬
point.
The railroads have holdings.. The complaint that
dend of $1.60
was
paid Jan. 3,.
natural metamorphosis.
been showing this tendency British
1944, and $1.20 Jan. 2, 1945; the
capitalists have not
for more than a generation, been as alert as Americans
next payment has not been indi¬
What Policy Shall
%
cated.
"<
and only recently, Leroy A. and Germans in
We Pursue?
introducing
Cincinnati
Street R a J1 w a y
Wilson, Vice President of the modern equipment and effi¬
If all this is true, what is (around 15V2 over-counter) * has
American Telephone and Tel¬ cient methods to make her in¬
n-id $1 40 in the past two years,:
the outlook in our own econ¬
giving the stock a yield around
egraph Company, after a com¬ dustries more productive may
omy?
Must we inevitably {#%. earnings in 1944 were $1.54 a
pletion of a study of the Sys¬ seem fair, yet, it % should effect the same transition? Or
shar£—and in the previous year
tem's capital structure and be
borne | in
mind it hat can we regulate and readjust $1.58>^£ter the bond sinking fund.
National City Lines is an ag¬
earnings during the last twen¬ British
capitalist s,\\ as our- system of competitive
gressively-managed holding com¬
ty-five years, reported that, shrewd
intelligent;; beings, private enterprise-and free
pany controlling a number of bus
whereas the earnings on stock
have
sensed
the
trend
of
economy, so as to continue to lines in separate local systems
in 1920-1926 was 9.5%, it has
declining gains in their capi¬ progress along the lines that over a wide territory, principally
fallen to 7.8%, despite a re¬
in the middle west. ; The stock
tal commitments at home and
have, in a period of a few offers a fair dividend
duction
in
relative fixed
yield and
preferred not to risk funds in centuries, made our nation the
price-earnings
ratio
seems
charges and a better relation¬ sinking ventures, when capi¬ the richest and most
produc¬ reasonable. The company should
ship between debt and capital tal could be more lucratively tive on earth? A Must we ac¬ have substantial system tax sav¬
stock.
J -;t
employed abroad. Thus, the cept the. former New Deal ings, estimated at around $5.38
based on 1944 figures.
The com¬
"There is no certainty to¬ old
prewar question of a "ma¬ principle of a "mature econ¬
pany has
a
conservative capital
day that the system necessa¬ ture
economy"
preventing omy", a theory of limited structure and dividends have been
rily has to earn as much as it rapid progress and prosperity
growth or a nascent deca¬ paid since 1937 (the company was
formed in previous year).
did in the Twenties in order crops
up again!
dence, and fortify ourselves
Chicago South Shore & South
to get the new money it needs
A
"mature
economy"
is against it by a policy of stag¬ Bend is an electric interurban
for further expansion," Mr.
taken to be a static and de¬ nation and statism?
railroad
Or can
reorganized in 1938.
At
Wilson stated. Looking to the
current
over-counter
the
price
cadent economy, unless enter¬ we by sane
government and
around 15 the stock yields about
future, he continued,11 "while prisers are
given an incentive economic policies, continue to 8% and the dividend appears fair¬
some
uncertainty exists, it to maintain its youth and add grow and expand in both ma¬
ly well protected.
looks : as
though
earnings to its growth. The fact that terial power and individual
Market
Street
Railway Prior
a

•.

nized

earnings

rate of

earning
power. And there were those, somewhere between those for
dike Ricardo and his school, the period when the system
! who held that wage increases sold most of the jstock (9.5%)
; were generally at the expense and the average for the long
j of profits, or to state it differ¬ (1920-1944)
period (7.8%),
ently, a rise in general wages may be sufficient to induce
(other things being equal) can equity ; investors to entrust
come
about only
through a more money to it in the fu¬
reduction in the rate of
profit. ture."
Yet, it had been long recog¬
Comparing ,the telephone
■

.wag e&

go
together.
A policy
of
"costs up-profits down" can-

.

wages and better living
ards for wage-earners.

high

paid when business
become
a
burden
on
the is profitless, and that
higher
panies rose to 9.9%, while French
Treasury. A similar profits inevitably result > in
A.T.&T.'s
earnings
on
its
situation developed in New higher wages under condi¬
stockholders' .'investment
York, in connection with pri¬ tions of competition.
High
were
only 6.7 %. But this can vate
operation of city trans¬ profits and high wages should
be

pointed out from time to time
that the
rapid progress of
America was due mainly to
the high return on capital in¬
ascribed to war time op¬
The taking over of
looked upon as an augury of vested in business enterprise. erations and cannot be taken portation.
the transit system by the mu¬
economic justice and social The comparative average rate as a situation that will exist
nicipal authorities was not re¬
progress, while rising wages of profit was therefore con¬ under peacetime conditions.
garded as a socialist experi¬
at the expense of profits has sidered as a real barometer
ment.
It was more in the na¬
Britain's Socialism and
been likewise hailed as a gen¬ and an infallible criterion of
ture of hn essential expedient
i ;
eral blessing and a portent of national prosperity, shared in
Declining Profits
•"
to keep the facilities in opera¬
Great
Britain
continuing
and
expanding by all classes alike. '<
furnishes, tion. The same sort of
thing
prosperity.
:
perhaps, the best example of would
happen in- the case of
: progressive,Profit Rate
No one, with a proper sense
the effects of progressive de¬
banking and insurance, if
;
;
DecMne
of justice, would decry the
clining rate of return on cap¬ these essential activities in
As a nation develops and ital
ten den cy
investment.
British rail
toward higher

progressive whittling down
of entrepreneurs' gains (i. e.,
profits) has been generally

that

cannot be

guarantee. ' They have

.

•
:

;

-■

■

*
•

■

Until

*
.

March, 1946, the firm will

be located in the Securities Build-

ing and thereafter will be in the >
Equitable Building.'' Miv Graefe
will

the
as

conduct
name

his

business

under

of Graefe and Company

in the past.

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4450

162

Approves Anglo-U. S.
Financial Agreement
1945 re¬
lating to "Restrictions of the Ster¬
ling
Area
Affecting
American
Foreign Trade."
•;
'Cooperation between the two
Governments along the lines laid
down is

tion of

a
a

prerequisite to restora¬
healthy world economy

ternational
the

the In¬

establishment of

the

and

Bank

International

for

of

exchange

A

gold position of all the proposed
credits to foreign countries now
under consideration.

The

1 :

Committee

Executive

American pro¬

mount to a lien on

economic

World

duction.

recov¬

is contingent upon prompt re¬
conversion in the United States

ery

and the maintenance of our econ¬

at a high level.

omy

Reiteration

plicable

is

r

given to

an

:

in

the Final Declaration of the Thir¬

ty-Second National Foreign Trade
Convention:'".
'• V.';7777"-.7

"During the temporary period of

in this coun¬
try, the .Convention recommends

short supply of goods

industrial

American

to

unnecessary

the

form

modern

most

Spain

1929,

to

1924

From

tried

of

financing." However, it
paid a high price:: economic and
political disruption. '/,;/yV'7;77: 7,
7; Every country, large and small,
knows that any solid and durable
raising of the standard of living
must be obtained through its own
"deficit

efforts;

knows
indus¬

it

much

trialization
hit

also

boasted

however,

the

sooner

will

later

or

deadlock—the narrowness of

a

77..77.7.r-:

the domestic market.

How

countries

small

the

shall

hold prices and reduce

manage to

costs, if the small turnover cannot
pay
for scientific research, nor
support a reasonable division of

manage¬

labor, nor earn a return for in¬
provision for export of vestments indispensable to effici¬
a
fair portion of their output, in
ency?
order to lay a solid foundation for
The Importance of International
a permanent foreign trade.
In no
Trade
event, however, should
control
the

ment

exports be exercised, under

over

for the
of small countries
(full employment on a miserable
foreign countries, \which would level or permanent high unem¬
compel the exportation of any ployment) is international trade.
commodity or product in quanti¬
Let me quote my country again.
ties sufficient to jeopardize the Under an
effective multilateral
American economy."
trade, we would easily be in a
The Executive Committee, dur¬
position to pay for $150 and per¬
agreements

commitments

or

American financial

for

preliminary consideration of
"Proposals for Expansion of

ing

The

alternative

only

chronic poverty

other aid to

.or

cial

haps $200 million of American
goods per year and we could use
them to normalize the employ¬
ment
basis of over 400,000 ag¬
ricultural laborers and over 200,000 industrial laborers. The gen¬
eral standard of life would rise

the

tmd

the

Employment,"
referred to in the joint statement
Trade

World

and

reached by the

United States and

the United Kingdom on commer¬

policy, notes with satisfaction
incorporation in these pro¬
posals' of most of the elements of
the National Foreign Trade Coun¬
cil's Declaration of Principles en¬
by the Thirty-Second Na¬

dorsed

tional Foreign Trade

Convention.

Executive Committee spe¬

The

cifically commends the intent of
two " Governments

the

the

to

submit

proposals to representatives of

other countries and to the contem¬

plated International Conference on
Trade and Employment. It is be¬
that

lieved
the
of

agreement

world

on

adoption and implementation
policies to break down world

trade

barriers

and

to

develop

a

Code of International Commercial

Conduct is necessary to insure res¬
toration

and

7" 77

trade.

.

expansion of world
".
>;'V;7

would be

we

an

active factor

v

cannot count on perma¬

we

purchases of over

ployment < in an 7atmosphere of
progressing prosperity — requires
the driving force of import sur¬
pluses from rich countries.
After
the
present confused transitory
period, where can such surpluses

Reserve System

Great

of

The Board of Governors of

Federal

has

trade

,v7v7.\;

was

multilateral

Britain,
vivified

afraid that many

I am
people have for¬

this essential fact.
From
1939, Great Britain had an

unexpired portion of term ending
Dec. 31, 1946, according to an an¬
nouncement Dec. 10 of William T.

during this same
States had an export

1901 to

£11.6 sterling;
period the United

import surplus of

$37.5 billions.,

Dearmont

Mound

(jhty,

Mo.,

born

received

at

his

Degree from the Southeast
Missouri State Teachers College,

A.

B.

LL.

and his
Degree from the Univer¬

Girardeau,

Cape
B.

1911,

of Missouri, Columbia, 1914.
He began the practice of law at
sity

surplus
v

-

complications

domestic

?

was

.

of

.

member of the Missouri Senate

imposed

the U. S. A. by the economic
leadership it has to assume.
The
tragedy is not that the U. S. A. is
very large, very rich and almost
self sufficient; it is that U. S. A.,
upon

being
and

at present the only large
country, is almost self

rich

sufficient.

1929 to 1932..

Since April,

1936, he has been General Coun¬
sel

for

Trustee,

Mr. Dearmont is

member of the Board of Trus¬

tees

of

Westminister

College

Because the

made

they

sample has been limited
applied to

may

.

7.; 7'77,'7

.

V.

■"- -7/ '

.

7.

%

War

'

■

.

84.3

Life

^

.7

,

7"7,7;.

should

accept the

,♦

most

fo^m of financial

generous

for

except

to

\

aid,

.

reconstruction
required to

urgent

and machinery

work

insurance policies.—--./
74.2
A savings bank-60.3''' /
A checking account
39.8
SECURITIES (STOCKS OR BONDS).
22.3
Pension or saving fund (employer)....—16.8

77

—

be

agricultural

7'

products

7

accepted,

even as a

When

5,000,000 American jobs would be
endangered. America would then
have to give up its export illusions
and absorb those jobs in the do¬
mestic market
7. or in a "full

and business

men

ment"

we

do,

"full: employ¬

on

constantly told that

prosperity in America is the basis
of economic stability and full em¬

"This half truth

ployment abroad.
does
it

the

exhaust

not

does

take

not

care

international

that lies

power

been

fellow to become

a

better and

more

successful investor than his father

History is repeating itself just as it did
greater scale.
All the problems
of huge surplus funds in the hands of the public, shortages of goods,
reconversion headaches, strikes, unrest, and inflationary potentials,
were with us then as they are now.
The security dealer cannot halt
inflation but he can help to keep people who never knew much about
the investment of their savings, from becoming "get rich quick"
gamblers overnight.
-7/77 ■777'7;;-.77 ..., i:7-.,
.
proved to be 20 years ago.

rags..;:>77-"77;771C

are

investing

individuals in the United
saving at the rate of almost 25% of their income.
to before, regarding these savings now resting in
the amount of 60% of the total, in the hands of individuals with in¬
comes of less than $5,000, means two things.
First, the small investor
must be taken care of properly. He must have good service and sound
advice. This time it is up to the securities industry to help the little
States have

again get tired of them.
Santa
Claus, after starting off in lux¬
urious apparel, would return in
debates

Magazine," issue of Dec. 20, 1945.

look at this vast backlog of

The fact referred

short and long, will be a tremen¬
dous
failure
and
America
will

Cinderella's

we

at the end of 1944.;, For the last two years

too—that the foreign investments,

7: In

\t

as we look into 1946 and beyond.
If further proof
huge pent-up purchasing and investing power, Fed¬
eral Reserve statements indicate that liquid assets of individuals in
the U. S. rose from $48.4 billion at the end of 1939 to $127.6 billion

American

knows—as

7

is needed of this

,

it

5.0'
; ^;777".-,. 77.'"

7

savings.

which lies ahead

.

economists

:

ahead of us, there should be no doubt in the minds of anyone engaged
in the securities business regarding the potential volume of business

employment"—fostering inflation.
The
world, of cuurse, heartily
hopes that this will not be the
case.
It expects
that the large
American
purchases .will
keep
running the mill of international
trade
and
employment.
Otherr
wise,

7

4.8

1—
no

Memorandum of "This Week

Over

gift.

Savings and loan association.
Employees credit union

Only 7.9% said they had

1

14.3
7
ll.3r.77

(The foregoing information has been taken from the Inter-Office

manufactured goods will not

and

v

Thrift account in commercial bank—_—4—

7 Other savings

speed industrialization.
In 7 some
years,
most ||of 7 the
American

a

cross-section of New York State the results cannot be

'77'.

warning behind the gener¬

a

reluctance

argument;

after the last war, only on a vastly

.

777.

.

The second

thing that should be apparent, is that there is more
before, for well-trained men in the securities business.
There is also a definite need for more small retail dealers, and for
more assistance
and helpfulness on the part of everyone concerned

of the pos¬

consequences

need than

ever

with the welfare and the .future of this country, toward
small dealers who

are

now

in business.

This

the existing

less. attempts to

means

American

of

high

Nov.

Freight Traffic Off
volume

The

handled

of

Hytron Radio & Electronics Corp.
Common Stock

freight

Class

by

traffic,
railroads in

I

November, 1945, measured in ton-

Prospectus

mileS of revenue

freight, amount¬
50,000,000,000 ton-miles, ac¬
cording to a preliminary estimate
based on reports .received from
the railroads by the Association

on

'

request

*

♦

*

ed to

American Railroads. / The

of

de¬

under November, 1944, was

crease

17.7%.
ton-miles

Revenue

\

I

•

Herrick,Waddell & Co., Inc.
55 LIBERTY

STREET, NEW YORK 5, N. Y.

service

of

performed by Class I railroads in
first

the

eleven

months

of

1945

6.8% under 1944, and 5% less
than
the
corresponding
period
two

years

However,

ago.

com¬

pared with 1939 the 1945 total
slightly more than twice as

much.

i

.

_

The
rizes

following
revenue

tables

eleven

1944

(000 omitted):

1st

mos._

of

.

Growers

Arden Farms Co.,
Fullerton

Inc., Com.

Pfd. 8C Com.

Oil Co., Com.

:

summa¬

ton-miles

months

first

.

Fruit

American

was

for

the

1945

and

IVagenseller 6 Durst, Inc.
Members Los Angeles Stock Exchange

9

Mo.

of

Oct.

Mo.

of

NOV.

at

Fulton, and of Lindenwood Col¬
Missouri-Pacific lege at St. Charles, Mo.




1945.

of

.

'free

,

al

626
1944

1945

Lines, St. Louis.
a

from

survey,

for the Savings Bank Association of the State of New

summer

—

read

Cape Girardeau in 1914, and was
a

A.

S.

: ;

was

The world is aware of the tragic

Nardin, Chairman of the board of
Mr.

enor¬

import: surpluses.

the
ap¬

pointed Russell L. Dearmont as a
Class C director of the Federal
Reserve Bank of St. Louis for the

•

its

by

gotten

the St. Louis bank.

y:,'T;

economic leadership

mous

*

U.

7

strangle the small fellow by cutting mark-ups through coercion and
self-sufficiency and
intimidation by governmental and semi-governmental bodies such
standard of life. American
as the SEC and the NASD.
It means that the large investment bank¬
$25 million. How shall we pay for depressions have done and can
ing firm, the members of the Exchanges, and the larger houses should
the balance?
I would not insist still do great harm to the world.
assist the small retail firms instead of trying to undercut them and
on
this example if I would not American prosperity, on the con¬
force them out of business. There is a place for the large firm, the
know that the world is full of
trary, does not necessarily mean
medium-sized organization, and the one-man sole proprietorship.
(Countries in a similar situation,; 7; prosperity abroad . 77, a discrep¬
They all serve a purpose and a clientele particularly their own.
ancy that could not last very long
The way it looks from here there is a big job ahead in the securi¬
The Quest for Import Surpluses
because prolonged world misery
ties business—and plenty of business for all.
>: Multilateral
trade — insistently would destroy—with or without
recommended by the U. S. A. and atomic;; bombs — your
splendid
everywhere else as the only pos¬ prosperity and with it all our
sible means to stabilize world em¬
hopes for a better life.
But

nent American

Under the

St. Louis Federal Reserve

The

7

.

,

of

failure.

to

securi¬

corporate

be taken as fairly representative of a
large portion of the country.
The people of New York State were
asked: "Do you at present happen to have any money in war bonds?
In life insurance policies?
." and so on through a list of nine forms
of savings,
The percentage answering "yes" to each item was as
follows:
/ ■■.7/7<77, 7.v
7

trade barriers,"
"freedom of monetary exchanges,"
etc., etc. The campaign is doomed

"lowering

sible

the economy of the world.

in

be found?

Dearmont In Post at

;

a

survey

the entire U. S.< but

"bishops and
America
priests and all sorts of budget par¬ trade," "multilateral agreements,"
crats,

that

ap¬

contained

statement

:;,7 1
preaches for

7:77V : 77'7;/' (Continued from page 3130)

asites.

em¬

phasizes, however, that the grant¬
ing of this credit must not be
viewed, here or abroad, as tanta¬

to

Foreign Reaction to /taerican
Full Employment Aims

rates.

not advocating

are

of

Elmo Roper, who conducts the regular "Fortune"

■7;

Re¬

Further study should be given by
the Congress of the effect on our

'

Bank

1945.)

BUSINESSES

(We

purchase

Publications, (Nov. 20th issue of "Marketing Memos")
further went on to state: Savings in the hands of those with incomes
below $2,000 are estimated at 11
BILLIONS, with the group earning
between $2,000 and $5,000 annually having about 48 BILLIONS.

(Federal

way.

the

McFadden

from here. Here are some of the
Reserve Bulletin, November,
deposits and currency held by INDIVIDUALS and
expanded by almost 70 BILLION dollars as a result of
this

feel

we/,

Victory Loan.

and

governments

in the securities markets.)

History.

That's the way it looks to us

,,

reasons

result of the last

ties, but this huge total of government securities will add its weight
to purchasing power and will eventually show up, partially at least,

Marketing Opportunity

Savings Offer Greatest

for Securities Dealers and Salesmen in

of

York in the

developments will have
Important
bearing
on
the

stabilization

Peak

the-sale

DUTTON;

a

special

these

an

JOHN

By

as

and

Monetary 1 Fund

construction and Development. All
of

.

creases

Oct. 22,

on

financing the war and are now more than double the 1941 level.
In. addition, holdings by thesd groups of United States Government
securities, which may readily be converted into? money, have in¬
creased anradditional 70 billion dollars.
There will be. further in¬

Securities Salesman's Corner

(Continued from page 3137)
of the Council

3157

o

% Dec.

534,826,036 556,424,186
*50,000,000

t49,000,000

3.9
63,875,263 21.7

77

SO. SPRING ST.

7

TRINITY 5761

LOS ANGELES 14

Teletype: LA 68

59,554,815 17.7
Market Quotations and Information on all California Securities

Tot. 11 mos.

633,826,036

^Revised estimate.

679,85*.264

6-8,

fPreliminary estimate.

x*

'

FINAjNCIAL^ CHRONICLE

THE COMMERCIAL &

3158

^

:

Thursday, December 27, 1945

trainifraveling

senger

a/fairly •As long

on

1908 a company in
built ta^?-steapi*i;urbine

ago as.

'Scotland

to give some advice,
not, it would, run

I were going

(Continued from- page 3137)
icajly near. : Distance has a new
meaning to us.; A hundred years

I;

which
■

am

something like this:
:
"We haven't made enough prog*
.

,

the next village was a far trip.
We
have
done
amazing
It was a journey. Fifty years ago ress/.
the next county or the next State things, yes, but let us look upon
'them, only
as a
beginning,
- not
were journeys and made a, man a
traveler.. Today, all of us, but nearly so stimulating as what: is
to come after. Certainly we should
especially the* youngsters, think
not
think
there
are
no
more
of, Moscow, Shanghai, Cairo, Lon¬
worlds to conquer, Ver^ far from
don, Paris, as near at hand.
ago

underesti¬
mate the revolutionary impact of
that point of view.
Never before
have the people of the world, the
Wee cannot af ford' to

everyday

ordinary

of

millions

people* felt so surely that travel
is a normal, natural thing like
breathing.
Never before have so
many people so readily accepted
the notion
that necessities and
luxuries
can
and s h o u 1 d be
brought great distances to the
modern consumer.
Never before
have the world- and the people of
the world so readily accepted the
notion that millions of tons of

it.

,,i

'

■

*;f»

v•,

•

report a conversation
conversation which un¬
I have never reported to a
' <//
f

now

SOUl.

.

of the

destined to make
history on a Mid-Western rail¬
road.
She came slowly and hum¬
lady who was

being
by horses and humbly

bly; slowly because she was
because this

Every pound

was so.

into her

of material that had gone

things can be transported easily,
in normal course/ /.///-• -;•••:vr'.-*j making had^been hauled by horses
nearly a mile from the nearest
Growing Needs for Transportation railroad tracks to the locomotive
"

It seems clear that we are

in a

period of a rising standard of liv¬
ing. Men ean produce more goods.
The war years have seen an in¬
crease in the nation's population

5%, and the next few years will
an even greater addition..
In

of

see

period that lies ahead, more

the

goods will be consumed per per¬
son, and there will be more peo¬
an increase in
transportation/ It
all adds up to a bright future for
the American railroads.
Some of
the
increased
peacetime traffic
will go to the trucks, and a small
amount of high-value cargo will
go to the airlines, but the bulk of

this

All

'

means

volume of

the

railroads

The

never

they

ready as

are

been in any recent dec¬

ade to vie for the patrenage.

The

with

train

streamlined

fast

re

chairs,' and the "coachsleeper," which afford the ordi¬
nary
passenger a chance for a
good night's rest with little in¬
crease in fare, give the railroads
new opportunity to compete with
clining

the automobile and the bus.

before the war we
had listened- to taunts that the
railroads were overbuilt and that
about half the mileage should be
For

years

scrapped. We had heard these in¬
so long that even some rail¬
road men were coming to believe
them. But between 1941 and 1945
sults

it

was

we

ers

period of about 60
years, was to undergo the humili¬
ation of being hauled by horses
plant over

the

a

distance to the railroad

same

tracks before she could leap for¬
Once

the tracks of the

on

that

She survived one

and did it well.

not quite
Now she

but could

War,

the end of another.

see

has passed on.
After
being

•

us

that- in the next ten

task

ous

of

her

assignments

she
/

Between

an

younger

again to the railroad and locomoFor it

industries.

tive

that: we—all

me

of

utilization,
the
greater
comfort of our pas¬

and

and, in general, the

senger trains

wonderful records that our: rail¬

making, and.the great
contribution to the* country's wel¬
roads

were

with

/:
listened

/////,

>;

us

to

seems

here this

evening,, and the host of young
who have not yet come to us
the scientific schools—have

tempts

before us the most exciting of all
things—a challenge and an op¬

portunity.
It is a. field of great
spirit and high tradition. A U. S.

sergeant-engineer running

a

lit¬

the line
fro™ Teheran toward the Russian
on

border, came verv rinse to din¬
ing the true professional feeling
a

railroad

man

when he said:

time,

traditions

of

the

fields

and

the

locomotive

and

justify

a

confidence and cockiness.




and

certain

Yet if

utes and which irr actual

and you may

&

1895

in

of

this

the hostler

moment

in the cab,

up

her

I

train,

that

true

built

in

most

firetube

/;'■; /

But

Diesel

of

this

itself

place

fired,

with

this

rotative speed up to
Then

tions.
are

that

bine geared

axle.

indicated

horsepower

Today

have steam

locomotives

-that

horsepower
of

more

we

in

and-

her

younger

days

even

turbo-electric locomotives.

"Now," she went on, "you have
talked
vou

about

improvements

the

have made and of your

doesn't

high¬

train record runs>

seem

to

me

that

you

have

got so much to brag about,,
considering
that
these
records
the

half

a

of nearly

progress

century."

,

n

1876,

from

Francisco,
Railroad

the

on

to

Chicago

New York

t*m

Pe^nsvlvnria

Chicago;
and

to San

then

North

over,

Western

was

in the

present year, but test fig¬

the

bine-driven-locomotive

w,e

form

an

than 400%..

1,500
increase

model

was

The

axle
43,000

The weight

maximum

locomotive

any

St. Louis
hour.

Today,

tons

and 750

the

electric

that

During
senger

1942,

we

schedules in

44 pas¬

this

country

running between points from 50
to 202 miles apart at speeds of 70
to 84 miles per hour. Locomotives,
steam, electric and Dieseh have all
reached

or

exceeded speeds of

available

are

sneeds

that

that

can

are

standpoint of sig¬
and

curvature

air

-

+r>:/>

cof+s

means
monev.

conditioned

power

A

land.

efficiency/ is

thermal

Its

only about half, that of the Diesel,
but its builders claim it can oper¬

same

ate

would

which

crude-oil,,

on

make its fuel cost about; the same
as

that

of

justly

/

same

/■•:./

•■

bej^ond

Finally,

of the

Diesel

a

power.

used to power an elec.

all

:

these

ex¬

for

with

rail

the

power

where the

profoundly
steam

power

high cost of fuel makes

than

pierr»xr e-f
engine »
it is

m

this

hau^e^s

a&rrt

it
fvpe

will

of

used in transportation jmd

in all forms of industrv.

be^an

j

a^d j t" *
reciprocating

they eventualh* will find
harness atomic energy.

And" when

-

40

modm™

L000-trm

use

tive, of 2,000 horsepower, runs- on
the Federal Railways of Switzer¬

;
are

ttq

turbine
!

speed

or

Exneriments

of', nearlv

track.

"Rut

wheels

considered

nals.

ri°WPr

engineers

,

however, burns oil. This locomo¬

be height¬
railroads see

accepting the

•

gas-turbine locomo¬
in the world today,

only

in

tive

!

maintain

safe from the
roadbed

The

tive propelled by a steam turbme' and gas,
spared
directly to. the driving ( ways to

120

miles per hour. There is no ques¬
tion but that motive power units
anv

to

>.//'.'/

locomotive.

proud of the technical refinements; perimental forms of power now
and, increased efficiency they are being tried out, we stand—terri¬
building' into the reciprocating fied, but committed and a little
steam locomotive, but they are hopeful--on
the
brink of the
far from resting their case there. I atomic age. Just as resourceful
They are pushing toward the per- i and inventive men have found
fection of a coal-burning locnmo- J ways to harness steam electricity

i

had

way

Steam

have

had during the past ten years,

their

the

accepted in the Diesel.

steam,

we

whenever

than

locomotive', is

ploring the possibility of burning
pulverized coal in a gas .turbine

degree of. standardization in the
steam locomotive that they have

last

in

ened

principle

in

propelled by a gas turbine—
simply a geared turbine revolved
by hot gases.
The coklrburning,
railroads of this country .are ex¬
one

Dur¬
loco¬

same

break.

a

newer

steam-turbine

the

and this advantage can

speed runs back of the turn of the

Diesel and

one

daily average.
Steam
still has the advantage of much
lower initial cost than the Diesel,

degrees temperature.

runs

Even

per- ./passenger service in one month
and followed the next month with

It is true, as Old 376 stated, that
we had a great many special high¬

high-speed

customer

motive of the conventional recip-

motives that evaporate 70 tons of
water an hour at 300 pounds pres¬
sure

erating to and from the coal fields
anxious to give their best

feed-

have steam loco¬

we

railroads—particularly those bp—are

competition,

ing the past few months,

still

is

having faith in the con¬
evolution of the coalburn-

?

ing locomotive. About 22% of the
total freight tonnage of American
railroads consists of coal, and the

locomotive is reaching

records of availability.

new

and /

as. much.
another g6od /

/promise

for

tinued

at. : seating .type made 26,928 miles in

tested

20

about

was

steam

some

design

materials,

there

reason

heating,

Under the spur of
the

of

evaporation
boiler

And

is

a success. -

technological/improve-,

in

manufacture

the riveted with the welded boiler.

of

other will be

Recent

the use of roller
dividing of power
into two systems, with two cylin¬
ders each, and the replacement of

that. 1904
pounds, com¬
pared to 70,000 pounds for the
1,500 horsepower per axle loco¬
motive, an increase of only 63%.

driving

per

superheating,

or

ments

bearings/ the

produce

axle,

per

water

directly to the driving
placed in service early

wheels

are
not yet available. This
model/like the one I have just
mentioned,
has
a
conventional
type boiler with a working pres¬
sure
of 310 pounds and is noncondensing. In the various models, +
enough progress has been made
to indicate that the American tur¬

looking forward to still lighter

temperature

»

steam tur¬

a

ures

in'

per

-

A locomotive with

much

maximum

stoker-

a

condensing
conven¬
i boiler
operating
at
310 /
non

•

tional

1,000 revolu¬

remember

«

pounds pressure.

.300 pounds and the
100 revolutions per

Contrast

■

a non-con¬

electric locomotives with

-

down to 18 pounds and the

power

The test lies in how

demnation.

over

^quipped with

mately 600 pounds.

the drafting boards

on

<

/■ One of the great coal-carrying
railroads Ms placed'an order Tor
three coal-burning steam turbo-

comparable figures for Diesel en¬
gines in locomotive /units today.
We have the weight • per • horse¬

con¬

no

is

minute.

,/£/

is

its

won

^ -

loco¬

densing watertube boiler with k
working
pressure
of
approxi-

the

in

power

Locomotives^-

in

has

the

turbo-electric

other

are on
their way.
Qne,
designed to burn pulverized coal,

switchers, and not one

rotative speed

boiler.

Improvement

■ :

orders

experimental models.
There are Diesel engines in sta¬
tionary service—and not old ones
at that—where weight per horse¬

operation today are
basic principles of

Record

in

1

V

-

Now

In the switch-en¬

engines/

and

and

Stephenson's "Rocket." They are
Still the reciprocating engine with
a

tion.

steam locomotive
the hard way, by sound service
on the road and
by constant im¬

loco¬

steam

to¬

The

strong.

availability was ,too
permit its continued opera¬

low to

~
trend

ewer

But

-

motives

The

the

on

built.

is to be

alongside

climbed

pondered what she had told mel I
confess I felt somewhat deflated.
motives

turbo-electric / locomotive

areas

steam switcher.

But at

down

sat

it undoubtedly showed the
highest thermal efficiency of any
power,

for

she

local

V
the

is

locomotive

426 Diesel

she bade me

and

Diesel

////■/;';/ '/'•"/■ //////■ ■//
provement
had pulled out with

adieu. ■■/./
After

moment

the

Equipped

high pressure watertube
generating 5,000 horse¬

a

boiler and

past year/1944, saw the Diesel for
the first time forge ahead of the
road

minutes, 40 seconds.
:
Here Old 376 paused for breath.
Then, like any other lady, she was
her story.

chiefly to

completed and

service/

in

out

with

gine classification, of course, it has
been leading for years.
In 1944
the
American railroads ordered.

in 70

resume

that th.e

but they

also,

used

be

the

steam

lit¬

a

tested

expanding role
locomotive and

congested traffic.
At

ward

with

ran

seems

an ;

will be confined

Shore

Lake

the

on

10-wheeler

will

tives

its
train from Erie to Buffalo 86 miles
17"

electric drive was

More electric locomo¬

the Diesel.

practice

Michigan Southern when

tle

holds

future

it

me

lo'co-

moti ve.; In
1933 a /condensing
steam-turbine locomotive with an

ask me what type of

for both the steam

bet¬
And
spoke of the fastest of all fast

runs

To

trains.

sometimes under-cut by five

was

this country took the initia¬

tive with the steam-turbine

said

have

locomotives will pull those heavy

start-to-stop time of 50 min¬

a

/

that the best dec¬
ades Tor the railroads lie ahead,

fast running in 1898 on the Phila¬
delphia
and
Reading,
between
Camden and Atlantic City, a dis¬
tance of 55 % miles, which called

for

Just before the outbreak of the
war,

The Future Prospects
I

were

Steam Turbine Locomotive

The

"T//////'

speed. /v•/::•

C

to some

uled

Sbn reminded me of a run made

accomplishments

railroad

out

bearings in- 1891, combus¬
tion
chambers
in
1860,
brick
arches in 1880, syphons and re¬
verse gears, about the same time,

Needed
The

Old 376 referred

Then

roller

represent
More Transportation Progress

than

8'-/./' /

;/•///

the railroads
pitch their battle

will

obviously,

maintenance

and

cost

higher; the net advantage still lay 'I
with the reciprocating enginOv
/Y'

V service,

passenger

railroads:: are

the

century, but we have never
had the number of regular sched¬

It

eyes."

trains

first

with the airlines on other grounds

ago," she

years

ease,'as far as
is concerned. In

met with

be

can

locomotive -power'

were

back in your
And she men¬
tioned feedwater heaters in> 1859,
come

speed passenger

with envy in their

the

designs?"

the B. & O. I've seen millionaires

sines

tried

being

after

"Many's the time back home on
look up at me from their limou¬

in

improvements

at

steam locomotive even before my

latest

of

■.

gotten that many of the early at¬

discarded, have

locomotive

<;■: ■ •■/; /.;',

First, have you for¬

few things.

from

steam

/;.

hour and I have time to tell you a

men

tle

carefully
Then she

me

occasional sigh.

an

said:

to

"Well, I won't be called for an

even

than I am, I would be drawn

man

v

great availability, of steam, elec¬
tric and Diesel locomotives, the

abandonment of lines.
were

-

weight, higher rot&tive speeds,
we have increased efficiency
higher mean effective pressures,
applying Stephenson's prin¬
^nd^eater-output: per cubic inch
I
happened on her one day ciples. Here the record is goodj/jj of cy 1 ind er, vol u m e. /
y/..
/ / /;■
Consider the progress-made in
when she was in one of these
-/While The Diesel has been step¬
meditative moods and engaged her only the last 40 years?%At'the Str
ping
out,
however,
the
steam
loco¬
in conversation.
I told her about Louis Exposition in 1904 the Penn¬
motive has not been standing still.*
the great work that our modem sylvania Railroad built a locomo¬
I need merely mention the use
motive power was doing, the long¬ tive testing plant, the most mod¬
stokers,%poppet/,valves; unit
ern of its kind up to that "time.: Of
distance,
high-speed
passenger
castings for : bedv frames of both
all the freight locomotives 'tested
runs,
the new streamliners, the
tenders/and locomotives;
highthe most powerful produced 280.
heavy-tonnag.e freight trains, the
wish.

She

I

In view

branch line.

found time for meditation/

fare. '

if

on a

ord, the management granted

five times as much will be

So

69

was

running today?"

long and satisfactory rec¬

her

spent im improving roadbed and
trackage and building multiple
tracks as will be sacrificed by the

years

nental

she

asked to be shifted to a less ardu¬

safety

dations tell

the in¬

The traffic was too heavy,

,

"when roadbed and
not what they are
today.
Now let me ask you just
how,, many
through transconti¬

It "is

-

a

tensive work-day too long; so

railroad capac¬

ity either for the demands of war
or
of a fully functioning peace¬
time economy. The research foun¬

"That

equipment

She did her job

realize their age.

World

oldtimers to

of the

some

mettle

her

showed

quickly
caused

she
and

her,

purchased

-

reminded me,

///''
rail¬ ready to

ward under her own power.

3

this

New York/ and

she

And ."how she, like more
5,000 oNler sisters and broth¬
that had been built in that

pretty clearly shown that
no excess

left

it

than

better

have

another

Ogdem to
Oakland Wharf. This train arrived
in San Francisco in just one min¬
ute less than 84 hours from the

shop.

main-liner for
many years, she realized one day
it, will move in freight cars.
not so long ago that the load was
Travel,
too,
should
increase
getting to be too much for her.
v/.tli the rising standard of living

have

from - Jersey

and

minutes—an average speed of
ter than 73 miles an. hour! /

road

ple to consume them.

-

the 879 miles from;

one

•

Rogers Locomotive Works, one of
Alco's corporate ancestors, came
the 376,
a
high-stepping young

pulled out

miles

Pittsburgh

to

requires

stops, the one at
Chicago taking 31 minutes/-/:v f\

rolling

Fifty years ago, slowly
out of the erecting shop

City

locomotive with

/at; .the drawbar.

time included all

to you, a

til

entire 440

the

time

I want to

Bluffs; from there- -to

Council

to

Ogden, Utah, on the Union Pacific;
and from Ogden to the: Oakland:
Wharf on the old Central-Pacific
—a
total distance of- over> 3,313
milesOne little 8-wheeler ran

f

an electric drive,
'aboute £850 -horsepower
To maintain; a but it got little- further than -the /
speed of. 80 miles per hour for testing stage.; Neither did'another /
.that/sameitrain on the same", track : Scotch model of the same general
requires/a|v additional-50®. horsey type, built/in. 11)22.^Sweden and
Germany/tried their han^s: at.di- •
powesv-v At. 90.. rnil^s ah; hour a fq t'¬
other-; addition^ of > 550 - horsepower rect-driye, steam-turbine conddns- >
must;: be f urn ished. / One huiid red Tng C locomotivesand / bitilt
ope
miles/arb hour requires twice the model that r; used 40% less /qdal '
power-needed at 70// But -speed than, the reciprocating, locomotive. /
requirements in freight operations But availability was "lower ^and

;

Meanwhile it, 4c

velop

to

of power

the ut^oo+

that

: the particular t"--

to de¬

sources

to use
is most

:

THE

[Volume;l62 tNumber 4450
economic for the job. to

This

r

British Reaction to American Loan

,;

;•

American Railroads Revitalized
I

(

».

such

for

outdook

the

for

power. In con¬
clusion I return to the theme that

railyvay locomotive

to be the smaller of the two evils.
The

is

Agreement

unpopular

so

that, had it not been for the skill¬
X voices at the outset—the war has fully devised Parliamentary strat¬
revitalized the American railroads. egy with the aid of which it was
•Let us compare -1918 -with 1.943.. rushed; through in1 2l/z
days, it
In 1918, at the peak of

World War
; I, our railways had a t'otal invenJtory of more than 63,000 locomo¬
tives' with an aggregate tractive
",power, of more than two bill ion
; pounds. And 57%
of this inven¬
-

tory hvas in locomotives ten years
old or less. In 1943 we had an in¬

of. Only 42,000 locomolives, having an aggregate trac¬
tive 'nower about the same as in
1918;but with only 5l/z% of the
ventory

-

;

locomotives less than 14 years old.

have been passed. As

never

it was, most Members

had

no

time

study its details properly, and

to

they did not feel capable of
forming an. opinion of their own
since

they

the

gave

the

Government

benefit of the doubt.

They did

'•*

aged r inventory

J the

In this war, the rail-.
roads of this country handled 97%.
r of
all- troops; J93 % -of. all Arrnv
y equipment and supplies; 90% of all
y handicaps?.

;

,

Navy equipment and supplies. and

V

.in the first 40 months of this war

troop movements by rail were four

v;

; times as great as in World War I.
The increase ;in 'ton-miles was

•

V'.: 82%;

in

miles 124%;
freight train, load in-

passenger

-

vy, the average

V

.67%,'1 and''the "average

creased
miles

,

23%

with

.

per ; car

day 99%.

And these records

v

,

>■,.

.

were

'

achieved

33 %

employes,

fewer

_

people, the coversion of Brtain in¬

ly against the loan, in accordance
with the wishes of the majority of

rights attached to that status.

their

We

ernment

being in office; it-seems

who

"c;,>

tives

the

Conserva¬

the

best be characterized by

can

sentence of Mr.
Boothby's speech, in Which he -ac¬
cused the Government of having

concluding

"sold the, Empire Tor a packet of
cigarettes"—a remark which,; it is

thought, will be taught in schools
even
in a thousand years', time;
The abandonment of the commer¬
within

Empire 1 is

the

tives, and also by many Socialists

10-year

period
there was only one passenger fa¬
tality for every 700,000,000 miles
of service performed.
•
:

Under Government

links

strongly, resented

deficit

a

billion dollars

the

of

in

still
profits of almost thice
levy—and

payroll

earned net

billion dollars.

These

«

taxes—exclusive

\

■..

figures

speak

for them¬

selves, The railroads did a stupen¬

job. And the best thing is
that the public realizes this fact.
A survey made in 1941, and quite

dous

recently repeated, indicates thai
only a little more than half the
American people thought the rail¬
roads did

good job in prepara¬
tion for the war in 1941. But 89%

Yet
will

the

not

The main

cannot' and

railroads

stand

these

on

accom¬

recognition.
competition

plishments and this
Airplane and truck

why

reason

Socialists

dozen

voted

two

against

Empire, but the fear tthat the
agreed upon will gravely

interfere with economic

planning
in
Britain, and will completely
upset the Government's plan to
a

Socialist State.

On the

other hand, the

majority of Labor
the plan
because they believed that

Members who--.voted' for
so

reduction of food rations and de¬

lay in reconstruction through lack
dollars

of

would

handicap

the

execution of the Socialist program
even

more

trade

that the system of free

imposed

on

the

country

//;/§/

against its- wish.

The number of those who wel¬

comed multilateral free
its

own

the

sake

was

Chairman

of

trade for

negligible. Even
the

impossibility

for

to master the immense

mass

short

a

:\;-v

' '\

,

majority

of

them

chance

a

do

to

some

thinking and
,

con¬

make the

suggestions that
to young minds.;
:
.
I

forward-ranging
come

have no doubt that
the railroads—and their suppliers
—will meet the challenge and.the
X, for

diminutive

Liberal

,

/

ity of sterling is restored, the
problem of how to defend sterling
is expected to be most difficult to
solve.''

■/.[^ r T

•••• ■

/'■

one,

oopoitunitv
of
postwar
mass
transportation. T confidently pre¬
dict that in the ten years follow-

f

accepted

! v Many

Socialists strongly

there

ing; to

be

been

to

This

is

many

Efforts

satisfied

to

pretend¬
have

would

vote against the Loan.
particularly the case of
Conservatives
in
both

Houses

of

frained

from

spectacular transaction

a

would

transactions

even

be

over-persuaded by

ac¬

a

even

sufficient scale, or

her

to moderate
It is felt that

export drive.

refused

been

have

would

now

the

loan.

And

though it is

even

believed that the* economic peace

bought in Washington in 1945. will
last longer

bought

in

than the political peace
Munich in 1938^ few

Parliament,

impres¬
considered

an

[

Is It An

A

///;■/'■:'■..

feature

of

the

important, rejection of over, the Loan is
would give the drawn, consciously
people
a
much-needed with
the
Munich

more

fort, and would induce the Em¬
pire to rally round the mothercountry and assist it with all the
resources

at their

Opinion

in

t

disposal.

the

as

the

immediate

and

cigarettes

future

are

accepting the dollars at
what sacrifices.

no

for

matter

But others feel it

would-

be; well

tighten

our

work out

all

in

worth while to
belts for a while and

our

salvation

own

even¬

the

eral

supporters

how

inclined

to

that

House

the

that

so

we

hold

Critics

their
of

could

we

stand.

fire,

are

now

Commons

has

passed the Agreement, until its
anticipated disastrous conse
begin to show themselves

quences

the

after

proceeds

have

been

"on is>
™ith whaf
and

tiori

the

of

loan

the

—1_»

l-

_

__•

,

Agreement has reduced itself to
absurdity.
Neither the Govern-

nor

which again sounded very much
like the defense put up by apol¬

ogists >:of
render

Munich:

that

the

prosperity for the sake of carry-

sur-

brethftig |
space during which to rearm. The I
way in which Lord Keynes and, i
to

gaiped

for

us

a

less

extent,; other Governspokesmen, tried to make
of necessity by claiming
that the free trade system to be
a

established would introduce
of collaboration

era

and

interna-

many

quarters to be strongly

miniscent

of

Mr.

,

in' "
—~
■
~Z
re- Results of Election of
.

Chamberlain's

nii-Artni-s nf St

1

enthusiasm, with which hedeclared

beyond the necessity of spending
the: proceeds in the United States.
information

This

from; the

was

withheld

Housce

of
Commons,
pressing ques¬
tions by Members of Parliament.
since the Government's

rested
there

mainly
was

no

on

the claim

alternative

to

case

that
the

,

.

;

A

,

Breakdown

Expected

The overwhelming

I

r*

nins

,r„°r °lm M*"1*

^ irf

Federal Reserve

his return from Munich: "This

on

outran agreement accepted
un<*er ,dllre?s, ,1fs
clamied^durmg the debate. They
Jf11 put up with a great deal for
Lhe sake of American friendship,
But ^a stage is expected to be
reached sooner or later when considerations of internal policy and
economy will, prevail,
_

a new

tional goodwill was considered

Parliament nor the Brit-

ioVi- rwinlir*
nr>n<3ir?f»r
ish'
public
consider thpmsplvps
themselves
morally bound to sacrifice their

r

,

before

declaring the situation intolerable
and claiming that the Washington

was

industrial productive capacity

our

o£defla-

unemployment .will the

Labor Government put up

terms, harsh as they
had to be accepted, in order
gain time for the recovery of

to

virtue

settled,

any

in

surrender

po¬

impossible to apply to
large extent. The only ques-

litically

were,

be

know

orthodox deflation—which is

parallel
otherwise,

or

Munich.'' The line adopted by sev¬

ment

was

controversy
the

Boothby actually called
Agreement
"an
economic

tually.

However, most people will
greatly relieved if the matter

slump-in the United States with¬
out any means of defending her
of payments other than

balance

Mr.

that

is

country

sharply divided as in Westmin¬
ster. ; Those concerned with
the
supply of food

1938.

will have to face the effects of a

J./-; :/

"Economic Munich"?

Agreement

tonic to stimulate its economic ef¬

.

ican tariff wall.

smaller

many

reaching
What is

sive ; total.

criti¬ And

cise the Government for the.way
in which it was

would be

case

faith,

the friction that might have arisen
if
the! American
proposals had

merely be¬

the alternative

cause

notwithstanding

The Free Trade Policy

bad

if the
breakdown of the system is ob¬
viously due to the unwillingness
of the United States to import on

|

back in full force. Both types

structive

of

vic¬

the

•

•

cused

positively mild in comparison with
the bitter feeling that will arise
torious supporters of the Agree¬
ment is not much happier than when, under the force of circum¬
their defeated opponents. In many stances, Britain will revert to the
instances the Government's assur¬ system discarded in return for the
temporary assistance afforded by
ances
were
the

But

Party, Mr. Clement Daspent.*;
is peace in our time!" And, finally,
vies, was far from happy about
; ;
just as many critics of Mr. ChamHouse of Lords Debate •
giving up regional and bilateral
of fcomnetition are ambitious and
The House of Lord debate on berlain resented his enthusiasm
pacts as a means of safeguarding
,dynamic. "Railroad
travel
and
the country's trade balance, in re¬ the Loan Agreement brought some over a disadvantageous and hutransportation
have
their own
turn for a loan which barely suf¬ additional information concerning miliating bargain, so some of the
special values and/ potentialities,
fices to cover;one year's trade def¬ the negotiations. Both Lord Peth- leading critics of the Washington
y but tfiey must be exploited.',
icit.
The Government was par¬ ick-Lawrence, : who
opened
the Agreement, including Mr. ChurchFor one thing we must appeal
ticularly criticised for agreeing to debate for the Government, and ill, stated that the Government's
to the youth of today, who are the
reduce the transition period un¬ Lord
Keynes *: himself, admitted case would have commanded more
traveling public and the shippers
sympathy if instead of "welcomder the Bretton Woods Agreement that it. would have been possible
of freight tomorrow. We must in¬
from five years to one year.
If to obtain a smaller loan on slight¬ ing" the deal the Government
crease the number of young peo¬
the proceeds of the loan will be ly more expensive terms but with¬ spokesmen had presented it as an
ple in our own ranks—and give
spent by the time the convertible out any. conditions attached to it, unmitigated but necesary evil.
are

Britain in that

reduction of the Amer¬

of

stead

the

terms

establish

the

of technical details in such

Tonic to Stimulate *

a

British

;

some

the effect of the Agreement on

did

interests."

•Not

the

their Government is not, however,

a

„of the public think the railroads
did- a good job during the war.

Conserva¬

;

Economic Planning

~

of just under
twd billion dollars. During World
War II, with private operation,
the' railroads paid into the Fed¬
eral Treasury four and a quarter
with

by

Fear Interference With

operation in

-

"If
State,"

49th

given by

ship at heart fear, however, that

people give it much more than
who re¬
two or three years. For it is ex¬
voting against the
pected
that the premature restora¬
.^|Aiby' no means inconsiderable Loan, owing to. the assurances that
tion of the convertibility of ster¬
section, of Parliamentary opinion,
the Government is not committed
while unwilling' to assume respon¬ to
the
elimination
of v Imperial ling, together with the loss of export markets and admission, of in-sibility for the rejection of the Preference.
Most
of
them
are
discriminate
imports, • resulting
Agreement, .would be overjoyed if vaguely "aware .that.
Congress
from the Washington Agreement,
Congress rejected it.; The view is would never
ratify the Agreement
will
exhaust
the
held that in that case the Wash¬
proceeds of the
unless and until the Government
loan in less than two years. And
ington Administration would have did commit itself in that
respect,
then we shall, enter the danger
no: objection to the raising of dol¬
whether or not adequate compen¬
zone;
lar ; loans 'from private interests
By that time the post-war
sation will be forthcoming in the
boom will be over, an$ Britain
on commercial terms, and that in¬
form of a

who; during their brief period of
rule, have become distinctly Em¬
pire-conscious.
;
c
T

World War I the railroads wound
up

7

on

time.

would at any rate represent

British

British

The-attitude of

relied

private conversation, "we could
two Senators to Washington

Labor Gov¬

of the loan would have been very,

the

become

the

of the bitter, critics exclaimed

one.

certain that the majority in favor
small,

did

many

State—without

49th

the

to

send

a

will be, according to

answers

Government spokesmen evidently

point of view, Britain might critics

his

in

occasion the

one

bringing the Government round to

servative leaders come out strong-;

fewer

cars—and in the
ending in 1944

persuasive power half qs
in dealing with the
American negotiators as he did in

work

cial

passenger,

Lord Keynes

used his

effectively

so

fewer
locomotives
by
number,
24%. fewer
freight
cars, % 30%
.

ly felt that if only

during the debate.' Had the Con¬

due to

rushed through the highly
important and complicated meas¬
ures was to give no time for Mem¬
bers to study the documents suf¬
ficiently. Indeed, on more than

tary Private Secretary. It is wide¬

.

was

ment

solitary Member who cheered: he
was Mr. Dalton's own Farliamen-r

have got a tolerably good agree¬
ment.
As it is, the result of his

the terms

is only
question of time, it; would be
possible sooner or later to revert
to the system of bilateral and re¬
gional agreements once it has be¬
a

the House re¬ a widespread feeling of bitter re¬
compliments paid sentment. The defeated opponents
come evident that the multilateral
to the British negotiators by the feel that the aim of the "indecent
Chancellor of the Exchequer in haste"—to quote Mr. Churchill's system could not be worked. Those
who
have Anglo-American friend¬
his' opening speech. There was one words—with which the Govern¬
ceived the high

hesitation, many of
them changing sides several times
much

after

followers,;, and had. they not
railroads hadf;"iaVwai.';''j'6bh:;tov'dc^^ antagonized their Labor opponents
How well did they do it with these by stating that the harshness of

this

With

-

,

would

which

lence'with

(Continued from first page)

I

v

So

•

3159

FINANCIAL
&
CHRONICLE
breakdown of the system

be done,

do ancl will.

we can

COMMERCIAL

The

results

of the

election

of

Federal Reserve
Bank of St. Louis, which ended

directors of the

18, were as follows, it was
announced by William T. Nardin,

Dec.

Chairman of the Board:

j

"A. Wessel Shapleigh, President

of Shapleigh Hardware Co., St.
Louis, was reelected by member

banks in Group
director;
' ;

1 as a. Class B
.

|,;v "Phil E. Chappell, President of
Planters Bank & Trust Co., Hopkinsville, Ky., was elected by

,
member banks in Group 2 as
majority of Class A director, and
.

a

the opponents of the scheme are)
?K. August Engel, President of
fully as keen on close collabora- the Arkansas Democrat Co., Little
tion with the United States as the Rock,;; Ark., was elected by the

supporters of the scheme; That in Group 2 banks as a Class B dispite ofUhis they took a line that rector."
risked antagonizing Americani ; Mr. Shapleigh and Mr. Chappell

accepted, the chances opinion was due, not so much to were chosen for terms of three
the view that the price paid for years beginning Jan. 1, 1946, and,
that, had the possibility of a
economists, produced by the Lon¬ commercial loan been
that' collaboration was too high Mr. Engel was elected for the unadmitted,
volume of passenger as well as don School of Economics firmly many more Members on both sides and one-sided, as to the fear that1 expired portion of term ending
uphold 19th century free;-trade of the House would have voted the sacrifices involved would not Dec. 31, 1946.
freight traffic they have hauled in
traditions—r these
Socialists are
The Federal Reserve Bank has
against the Government. It was buy "peace in our time," any more I
any peacetime decade in history.:
sometimes referred to as "side- considered
than did the Munich surrender, nine directors, of whom three are
safe, however, to ad¬
It has been my pleasure to wwk whiskered, Gladstonian Liberals"
For,
practically
everybody,
from
[Class
A, three Class B, and three
mit the truth in the House of
for 50 years in helping build, this, or "Cobdenites; in disguise"-—the
Ministers downward, is firmly con- Class C. .Those of the first two
Lords, since it was obvious that
classes are elected by the member
great transportation machine. As majority agrees .with the Lord the Conservative Peers would not vinced that the system will not
The Class A directors rep¬
work for any length of time, and banks.
President of the Council, Mr. Her¬ date to risk a constitutional crisis
long as I live, I shall watch with
bert Morrison, who at- a recent
that it is doomed to break down resent banking, and the Class B
by coming into conflict with the
absorbing and affectionate interest
directors,
commerce,' agriculture,
Party. Conference declared ,that House of Commons over this is- owing to the unwillingness of the
as
the job of building it and re¬
"free trade is not Socialism; ibis
United States to accept an import or some other industrial pursuit.

inp the war the American rail¬
roads/will handle the greatest

to adopt a policy of
Although the Socialist

Lord Keynes
free trade.

agreement
are

}■■■

building it, and using it ever more

efficiently
human

in

the

satisfaction of

wants, goes

on.

'




.

the negation

of Socialism.?,

,

sue.

This is one of the reasons why
One of the remarkable moments
of the debate was. the frigid si¬ the Loan debates: has left behind

surplus. Indeed, many
within the Government

opponents
acquiesced

The

Class

nated by

C directors

on

the assumption

thab, since the

are

desig¬

the Board of Governors

,v

in Washington.

THE COMMERCIAL & FINANCIAL CHRONICLE

3160

at

price

a

offered
to

•

issue

;

100.64,

of

from

and

of lower courts which held that

re-

yield of 0.40%

a

bonds of both the

dollar price of 100.50. The:

a

if

,

*f

if

Tri- )

the

borough Bridge; Authority

•

<

.

pected mounting supply, of bond3
materialize in the coming, year is "

Port Of NOW

York ('Authority /and

speedily absorbed by

was

Investors.

Thursday; -December'27; -1945

dominates
circles.

the close of the

While

signal

the

was

ine

in the

continued to date and

likely will prevail for some

very

weeks to come.

:

Indeed, it is quite possible that
real "bull-' market in the new

a

with the prospect that
supply of offerings through¬
the coming year will be pretty

the
out

much in line with the rather gen¬

1946 will witness

eral belief that

flow

uninterrupted

an

country.

r

■,

sections

all

from

issues

•'; -v: ;-y

.

bond

of

■

the

of

v.! i

;t.';;; ;• ;•

v

In any event, there is no ques¬
that the output in the past
several weeks has been such as
to enliven the market to a degree
that has not been in evidence for

vv

tion

months. Of perhaps greater
significance is the fact that the
large 'outpouring of
bonds has
been accompanied by an increas¬

trend

upward

1949

level.

development, it may be
added, unquestionably has come
surprise

distinct

a

as

to

many-

ing

the foregoing total. The
maturity dates are from
1961.

the

in

up

of

volume

■;t

That
than

a

"

A

Stuart

Halsey,

pur¬

group

est rates of

1*4% and 1%

respective

issues

the

and

from

1949 to 1963 incl., to yield *

0.65 % *• to
1.20%, • and
priced the Is, due 1964-1966, at

*96.75.

The

:closed.-

been a by¬

account

of

their

distributing

Thus

.State

which have con- *
importantly to'the.::

offerings

tributed

so

start

a

flying

cipal performers being the State
of

California, the City of Tulsa"

and Tulsa

County, Okla.

First

National Bank

issue

only

1.051%

at

-

to

to

dispose

net

a

of

1946-1970

in:

(ma¬
in¬

each

stance)

at the previous sale

Aug. 21

was

based

on

a

been

basis ; of

low

0.904%, the
having

.

of

obtained

1.05

at

sale

a

con¬

cago syndicate at a

pointed

Naturally,

bidders for the current issue did

price of 102.79.
number of syndicates
were
identified at the
auction,
with an account headed by Halsey,
Stuart & Co., finally withdrawing
after the bidding had reached a
a

level of 102.78.
The

First

Chicago

V

•

,

National

of

Bank

and associated under¬

prices to yield from 0.40% to
and succeeded in

1%,

placing about
a single day.

half of the issue in

bonds

out

that

exercise

chase

successful

option to

an

additional

an

bonds

the

the

on

same

pur¬

$1,000,000

terms.

;)

The State, it may be added, was
prevented from securing even bet¬

are

part

of

an

au¬

thorized issue of $30,000,000 and

ter terms
a

on

result

with

of

the latest emission
weather

Because

of this

Shields

&

was

as

interference

telegraphic communications.

based

on

not

a

Co.,
net

fact, an offer by
and associates,
cost

received

of

until

after

mishap occurred in the
of^the sale of $500,000 Prince
Georgd's
County
Metropolitan
District,
Md., bonds,
maturing
1946

to

1970

inclusive.

this instance the bonds

*

NORTH and SOUTH

were

climaxed by

CRAIGIE&CO.
^

System Teletype:
-

Telephone

RH 83

Sc

3-9137




84

000

City

bonds to

of
a

bonds

was

offered

for

sale

;

Okla., and $1,500,000 Oklahoma
City School District, Okla., both
tentatively scheduled for Jan. 8;
$3,000,000 Allentown School Dis¬

t

v

trict,

Pa., and $9,000,000 San
Francisco, Calif., both 011 Jan. 9.
It

will

thus

be

observed

that 4

the opening month of 1946 prom¬
ises
to
be
an
extremely1

busy

the

period
field

in

local

the

■

tax-exempt

and

i'if

Mosher Attacks President's

a

3s,

(Continued from page 3137)

net interest
and

growth of

terprises

The

$2,900,000 V highways,
1947

to

1964

traditional

ing^ the

against

cost

net

a

of

by

the

This record of prog¬
continued,
its

mula

is adopted as the national
policy of this nation. -

addressing the National As¬

sociation

Pitts¬

of

Cost

Providence, R. L,

winner

the

Mosher

Accountants
on

at

Dec. 13, Mr.

$2,840,000 Rich¬
mond,
Va.* improvement issue,
paying 100.951 for Is, a net inter¬

tistical reports issued by th-? De¬
partment of Commerce, which up¬

est cost of 0.88%.

held the contention that

The

ma¬

fired

Two

Elyria, Ohio, bonds in the

blast

a

could

the

at

a

sta¬

general

.

documents—"Facts

Relat¬

ing to Wage-Price Policy," and?

a

"confidential" memorandum "Do¬
mestic Economic
Development,"

prepared

by

the! Department! of

Commerce, particularly drew Mr.

usual

fashion

when

the

wage

I

bids on an
$1,500,000; ; San Antonio
Independent ;; School District,
Texas, on an offering of $2,186,000,
issue

and
an

open

of

Galveston, Texas, will award

issue of $1,368,000.

A'

These

three

substantial

under¬

takings will ring down the
tain

for

1945,

a

year

which

cur¬
was

replete with both thrills and trem¬
for the municipal
Probably the event
significance was the
victory achieved by

ors

!

jured
made

up

these startling formulas

liberal

of

use

conjectural

trade.
of greatest

wages should be raised to help the
~
purchasing power."
!,
' Speaking
subsequently v to, the
!
Bridgeport Manufacturers Associ- V '
ation on Dec. 19, Mr. Mosher reiterated his warning that the De- ; *
partment "of Commerce will.lose '■ ;
the respect of business if it keeps
producing "conjectural jingoism''
a
to
support CIO wage demands,
■
Mr. Mosher again denounced the : ;
two governmental documents re1
cently used by supporters of the: ;
CIO position. ; The documents of
the
Commerce - Department
he V,
>

.

,

said

allowed

were

when

the

"leak out"

question -grew

wage

>

to

hot.,

,*

;

"The

both

v.*.

general, v assumption-

documents

is

that wage

of »
in-<

25% can-be grant¬
price rises," Mr. Mosh¬
startling formu¬
las were fabricated by use of conjectural jingoism worthy of a top¬
flight bucket shop operator of the
creases of 10 to

ed without
said.

er

-

"These

twenties."^'!!!%!!; %'•

'■ v'!:-A
tha| unions refused to "

Stating

consider "take-home" as

a

meas-t

with the
no

.

war

over,

want to
base. wage
the cost of living but on

longer

scales

on

VZ !\\

"take-home"' pay.
"In every

ment,

instance; the govern¬

certain

or

infiltrated

ClO-dominated /

of it, has
the union claims," Mr.
Mosher added.
"Even the figures
of take-home pay don't follow the
and

parts

backed up

document should not be."

.:

work

a

48-hour week. And what's

important, it will be a long
time before it goes to a 40-hour

astonishment
that
the Business Advisory Council to
the Department of Commerce had
"either passed on this foul formu¬
la" or "gave tacit approval to such
an important
matter by their si¬
lence," Mr. Mosher said "these
government forecasters deal with

more

week."

-

The

Labor-Management
Con¬
in
Washington was no
flop, although it failed to achieve
agreement on many pressing prob¬
lems of union-employer relations,
ference

momentous

direct wage increases in their esti¬

Mr.

mates, and ignore the pyramiding

leaves

effects which

tempts of the Federal government
eliminate the tax-exempt fea¬
ture of local government
obliga¬

eventually throughout industry.
"The confidence of the public

progress, he explained.
"Each side attained a far better

consistently

defeat

perhaps most
suffered

by

government, came in the
form
of
the
refusal
of
the
United States Supreme Court,
on Jan. 2, to consider
decisions

•

labor leaders-

those who
resisted
at¬

have

r

phrases about probable sales; as¬
sumptions, hopes, expectations— Bureau of Labor Statistics* own
in
fact, everything a statistical
figures.
This country never did

Expressing

Closing the Books

>

insistence that

Mother's censure."".r>;.[;r; •> r. ure of pay when the r war upset
;
"These two documents were al¬ normal economic relationships;
lowed to 'leak out'; in a most un¬ Mr. Mosher- declared * that ndw;

.

andria, Va., will

„

be

question
got
hot," Mr. Mosher
I said. "The general assumption of
Coming now! to: the .present both is that industry can pay lib¬
week, we find that virtually all eral wage increases, from 10 to
of the main business is scheduled 25%, without raising prices.' The
for today
(Thursday), when Alex¬ ! government economists who con;

;
,;

,

In

associates emerged as

The bonds

and fallacious

ous

sys¬

and

years

and should be

burgh, and
of

wages
measured

as

tracks if President Truman's for¬
wage

honestly believe that high,is
being done to our
business system by the promiscu-

violence

this

quadrupled dur¬

50

past

can

1.488%

Corp.,

misuse of the prestige of govern¬

base

to

pay

in

but it will be stopped dead m

der, sponsored by a group headed
by the Equitable Securities Corp.
Securities

been

ihird.

a

ress

contained in the second high ten¬

Mellon

policy

hours of work have been reduced

en^-

couraged sharp competition, with
the guccessful account of Halsey,
Stuart & Co., taking the bonds at
a net cost of 1.469% to the State
as

has

ability to

tem wages have

maturing

inclusive, " also

.

them

to

ment. I

by productivity. Under that

\;;:y ;.v;

'

•

ment, labor and the general public
an
explanation i ncoming
to ;! ;:
of this high and handsome

has

en¬

essential

the provision of jobs

progress and

upon

1.226%. ;v

and small

new

which... is

for all who want to work.

net cost to the issuer

a

be that constant creation

to

cease

country

the

bonds, due serially from 1946 to

Is,

County* Ohio, Jan. 4; $3,976,000
City, Okla., Jan. 8;
$2,350,000
Oklahoma
County,

at

ured out to

conclusive

Harriman Ripley & Co., Inc. The

as

both

Franklin

—

Trpst & Savings Bank of Chicago
syndicate. This group's tender fig¬

This latest, and

Conn.,

syndicate headed by

1965 inclusive, were sold

in

$1,900,000

Oklahoma

other

record

earlier

Massachusetts,

3;

by

as

tions.

fhe sale of $1,055,Stamford,

-

of-

County, Calif., paying a

to

The earlier week's activity

-F. W.-

Bell

sold

100.1576 for l%s.

MUNICIPAL BONDS

RICHMOND, VIRGINIA

In

as
l%s, at 100.166, although the
two bids delayed in transit offered
terms of 100.0799 for 1.30s, and

CAROLINA

established

}

deals:

Minneapolis, Minn., ;
$3,216,000
by
Common-

Jan.

on

•

the

potential

$3,025,000
and

thereto.

was

and

• v *':■
:! .•;/
may well be the fore¬
Whether the standings will be runner of the most active
year
adversely affected should the ex¬ since the war. .A-":—..//.

A

hour, set for consideration of bids.

from

1945

actual

net interest cost of 0.914%;

a

the

case

Dealers in

out to

of

calendar of impending
already lists the follow¬

wealth

year. •/'!-yy

0.75s, due 1948 to 1950,
$875,000 Is, maturing from
1951 to 1955 inclusive. Bid figured

and

1.0423%,

A similar

VIRGINIA—WEST VIRGINIA

levels

$525,000

0.95%.

-

.

writers re-offered the bonds at

The

not

the

$1,325,000 were bought
by a group managed by Stranahan, Harris & Co., Toledo, taking
$1,175,000 water works improve¬
ment, due 1947 to 1976, and op¬
tional in 1956, as iy4s, at 100.634,
a 1.18%
basis, and $150,000 limited
tax sewer bonds, due 1947 to 1956*
as
ls„ at 100.291, a basis of about

ducted in January. It should be

of Chi¬

Calif.,; issue

system bonds
Stockton Savings &
sewer

amount of

1.261%. In April, 1945, the
disposed
of
$2,000,000
net

0.951%.

Loan Bank, which bid 100.027 for
$350,000- 0.50s, due 1946 and 1947;

-

on

net cost

bonds of 1946-1970 at the record
low

to

went

via

granted
affecting prices. - Public
Estabrook & Co.,, -of New York,
confidence in government is being
was second high
bidder, offering badly shaken by this' "statistical
100.729 for Is.
.folderol,?; Mr. Mosher contended.

Bank

identical issue

an

previous

Stockton,

$1,750,000

disturbed

ture serially from 1947 to 1966 in¬ Wage increase
clusive and an account headed by without

of

cost

Chase

a

the*

while

State

.

comprising
$15,000,000 " 1-^4 %'" veterans! aid
bohds, maturing from 1047 to 196.4
inch, was sold at public auction
a

that

of

The California issue,

to

that

able

was

turity

pec. 11, with the prin¬

on

find

we

able for

.

period got "off to

Insurance

-

syndicate, the best price obtain-

market activity in recent weeks.
The

Life

striking
illustration
of
the
changed- market > trend since V-J
day.. ; .^ y

to re¬
view the results- of the particu¬
lar

Mutual

Massa¬

a

of interest

be

may

the

and

Co.* and the new issue sale of $1,000,000 road bonds by the State of
West Virginia. The latter was of
particular interest as it provided

vestment interests.

of

was

4

high prige level attained in May
and the precipitate decline that
developed coincident' with
V-J
day. The bulk of the loss (about
30 basis points) was of temporary
duration
and,
at
this
writing,
prices are pretty close to the peak

Net

inclusive.

1955

The State of Louisiana issue of

York

chusetts

purchases among investors. With
few exceptions, and despite the
large-amount of. bonds involved
in each instance, or the overall
magnitude of the grand total, the
various offerings have received a
commendable response .from in¬

It

City
of

v

New

to

interest cost to issuer

of

rapidly

was

1948

ing

highlighting the municipal

market

nerup offer entered by the Harris

of

in

from

be

amendment

an

Also

serially from 1947 to 1970 inclu¬
sive, and the successful bid proved
just a shade better than the run-

county

business.

derwriters ;

Chase
York,
which bid par for a combination
of $660,000 Is, due 1946 to 1948,
and
$1,840,000
0.75s,
maturing

cost of 1.212%. The bonds mature

•from

•

than

a
group headed by the
National
Bank
of
New;

Is, and iy4s, making

effected the financing at a net
cost of about 1.18%. The group
re-offered
the
l\is, maturing

;
-

could hot

:The

,

mandated by the constitution and

County,

trade

evident,

-

events

,take jurisdiction in the matter
was interpreted
as signifying its
opinion that such immunity was

awarded

were

price of 100.16 for the bonds

loan is due serially from 1949 to

inclusive,

17

the

to

to

Alameda

of

$1,750,000
road and bridge, and $1,000,000
! county
separate
school.
Each
1966

Dec.

on

tricts

the

011

sold by San Joaquin

in

the
constitutional
taxexempt status of all State and mu¬
nicipal bonds, the court's refusal

ton Unified School District which
were

raised

volving

$2,500*000 bonds of Stock¬

Calif.,

questions

in

is

$15,432,000 of Oakland School Dis¬

the large volume of
The West Virginia Sale
.
negotiated.. in recent J'-V
On
weeks is clearly seen in the terms
Wednesday, Dec. 18, in¬
terest
was
centered
on
the
port¬
received by borrowers, also in the
degree of success achieved by un¬ folio sales conducted by the State

product

The

the

much

that the new year will
usher in a rather substantial flow
of offerings.
.-v.;

litigation were such as to cover
the infinitely broader question iri.-*

syndicate headed by the First
National Bank of Chicago won the

by Tulsa County, naming inter¬

firming tendency, rather

reaction, has

a

to

chased the $2,750,000 bonds sold

issues

reaching the market.

up to

As

The week ending Dec. 22 was
nothing less than a repetition of
the high-level activity that char¬
acterized the earlier period, as is
seen -in
the following review .of
the principal awards:
/ /

*•

proportion to the stepping

rect

the five issues add¬

1949

the

as

on

overall

mention inves¬
opinion has been
rather widespread that the price
structure is bound to sag in di¬
tors,

net

a

terest rates

not to

dealers,

to

interest cost of
1.207% and $400,000 sewer exten¬
sion bonds, due 1944-1966, also as
3s and 1.10s, and at a net cost of
1.203%. The re-offering was from
0.65% to 1.25%,depending on cou¬
pon rate and date of maturity.
The remaining
$600,000 bonds
offered by the city were taken by
Halsey, Stuart & Co., and others,
which bid various prices and in¬

•••

*

-

This

works

water

bonds,
due
from
1966 inclusive, as 3s and

1.10s,, for

price

the

of

and

improvement

many

ing

facilities

access

financing department is now un¬
der, way,

..

financing in¬
volved a total of $7,000,000 bonds,
of which $6,400,000 were taken by
a
syndicate'
managed -by
the
Northern Trust Co., Chicago. The
account bought $6,000,000 limited

issue municipal field,

new

,!y

V

.

The City of Tulsa

substantial boom

beginning of a

capital market after a

new

protracted absence. !

sumption of large-scale corporate
undertakings, it also marked the

which has

Repeat Performance

marked California's entrance in

Victory
the re¬

for

conversation

This

namely

,

loan

question that undoubtedly still

a

were,

entitled to immunity from Fed¬
eral taxation.
'

are

bound to

occur

Mosher
the

problems

by such

the other side's

Mosher stated. "Our government's

veracity and statistical dependa¬
bility must be such as to be used
with

"It

that they're hot
anybody's case.

confidence

loaded to prove
seems

to

me

that

manage¬

open

The

record

for

further

understanding of the nature of the

in the government

is badly shaken
statistical folderol," Mr.

said.

door

and

of

the

reasons

for

positions," he said,.
"For 26 days, labor and manage¬
ment
representatives
discussed
the issues with tolerance and

spect

that

some

might

re¬

consider

phenomenal.
"
"In brief, the position

of

the

yolume 162

-

-

Number 4450

3161

COMMERCIAL & FINANCIAL CHRONICLE

THE

•

bonds has kept pace

in order to understand how
that, by the middle of 1945
the cessation of hostilities, our

money

Full Production and Sound Fiscal

they

would

buy Governthere have- been

inept

Bills, and
other rates, less well
defined, at
which they have in fact been buying Government Certificates of
Indebtedness.

The

chief

reason

why this technique has been so
important ' is that these buying
rates, involving yields of from
%% to..%%, have made it possible
.

ifirv tbo
for
the

ol

own

•%*%

r<

banks, acting

initiative in the sale

own

of Bills and

their

4- i

commercial

their

on

Certificates, to create
at the Federal

reserves

Reserve

individuals, will
tend to discourage future savings,

rates

more

their

their

reserve

requirements.

'

1

cannot

than

cates, thereby maintaining in ex¬
istence a supply of reserve bal¬

Y

than adequate to meet
the commercial bank requirements
for these reserves.
ances more

in

Furthermore,
attempt to improve the yield
their assets, we have had the

an

on

commercial

banks

Government

buying

securities

other

of

some¬

what higher yield and longer term
than the 90 day Bills or the one

to

to

people

ly

with

the

Government's

fact

method

nancing the war has led
rapid an expansion of the
tary and banking system.

adequate to

the

meet

ment's and the public's

least

at

Govern¬

rapidly in¬

creasing Y requirements

for

has

the

or

this

in

This process has, of coufse, led to
an expansion of the whole mone¬

among

tary and banking system, but, as
a
result, the supplies of reserve
balances in the hands of the com¬

commercial

mercial

in

while

at

debt

banks and ,of deposits
of the public have

least kept pace with wartime de¬

mands,

interest

and

,

tended

to

decline

rise.y

have

rates

rather

than

to

;'yvY-CYyVyyY,

The

;

far

and

pros

or-lower

too

of

cons

rate

money

low

a

policy

are

intricate for

a
full dis¬
It should be pointed

cussion here.

out, however, that the technique
described
above," so effectively
used
in
this
country
during
World
War II for 'keeping
in¬
-

terest
as

rates

a

war

of;" the

low,;

adopted
in spite
tremen¬

.was

If,

measure.

Government's

dous

wartime
borrowings,
this
technique has actually had the ef¬
of causing interest rates to
decline, then surely the technique

fect

should

be

most

carefully

reex¬

amined before it is applied to the

presumably more moderate
requirements of peace. Of
there

writers and speak¬

are some

the subject of interest rates

ers on

who

money

course,

with

agree

-

the

view of the British
William

economist, Sir

Beveridge,

decline

to

a

that

slow

a

interest

zero

would be desirable.

extremist

As

:

rate

opposed to

this, however, there is a consider¬
able weight of thoughtful opinion
in this country which takes the
position that an-excessively low
declining interest rate, besides
crippling endowed institutions and
reducing the "nest egg incomes"
and

banks.

assets

largely

either

the

the

creased

commercial

$87

total

billion

banks

supply of

money

effort.

war

Government's

should
a

the

lie

the

for

considerable

a

time.

of

$

^

.

*

^Immediately after the collapse
of

Japan,; the outlook

mercial

bank deposits and cur¬
represented, for the most
part, by the liabilities of these
banking institution^, increased $73

haps

rency,

made

billion

taking

even

was

encouraging: We

more

;of:

of

some

Govern¬
prompt in

our

to

total

a

ment

of $121

unit, the
possible, how¬
that the inflationary aspects

ever,
of

this

situation

have

may

all

goods and services
hand

to

hand

are

been

the
and

rency

posits)

supply

money

commercial

should,

bank

to

early in 1945 there

expansion

tion,

in

industrial

and

wages

shortage
was

de¬

tions

tq

seem

inflationary

the

in

just

offset

pressures

whatever
considera¬

mentioned—we had a
productive capacity

able, under war-boom conditions,
to produce-something like a two-

an

thirds

salaries, V farm

greater

volume

of

do not choose to become

would not

privileges.

ion. organized
it

or

soon

bility.

my

labor must get out,
pushed out, of

stage

of

irresponsi¬
:

:

.

'

remedial

■'Much
needed

opin¬

will be

cfhildish

its

But in

to

legislation is
establish, legal equal¬

between labor and manage¬
and I am sure it will be
provided by Congress, backed by

pansion
more

of

than

wartime

seem

very

will not
in

the

can

take

place, labor

be the constructive force

nation

that

it

should

be."




and

pace

of

with the

other

to

serious dilution of the

major

mone¬

tary and banking system.
This thought is particularly in¬
teresting in that the wartime rise
in the cost of living appears to be

statistical

actions

keep

adequately explained, from

a

viewpoint, solely by the

increase in the overall cost of pro¬
duction

that

during the

we

have

war years.

witnessed

Consequent¬

need

for

with

the

November, this year,

of 109%.

%

-

now

definitely

out

new

corporate

business

of

Bankers
handling
the
Bates
Manufacturing
Co.
offering
of
256,000 shares of common stock
reported the deal more than 90%
completed on Saturday, after hav¬
ing encountered delay growing out
of litigation.
Y A potential buyer/who sought
to obtain a large block
of the
stock/ went into court to seek to
keep the books open on the offer¬
ing to existing holders.
But the
.

will

be

spread out over a greater period
of time rather than

being

in brief intervals

trated

concen¬

>*■

it has

as

been for several years.

\

Moreover, it is widely recog-c

ing that has been made possible
progressive
rates,

money

through.

;

,

study

require
and

such

any

court

in

A

to

group

on

of the trade.

under-

his

plea and the
opened
its
Friday.
real "quickie," in the parlance

books late

con¬

work

new

dismissed

underwriting

carried

been

will

It

siderable

project

contraction

has

Bates Manufacturing

.

financing
the way,

war

The stock

was

being

takings, since it must be admit-

quoted around $33 compared

ted

the offering price of $25

at

the

that
or

close

There is

with
share.

a

irreducible

the

minimums.
v

is

market

money

to

\YV!;H-Y"".v-Y'Y

^

tendency, at the same
time, to look forward to a swing
over to the new capital financing
which may afford investors a bit
better yield
by way of higher
a

Broker-Dealer
Personnel Items

And, since many com¬
panies are in strong position, it is
felt that in seeking new capital,
coupons. >;

they
new

utilize the medium of
equities rather than incur-,

ring

new

Y

f

(Continued from page 3136)
(Special

may

YiY:Y;YYY|y;Y YY

T.

G.

to

the

more

Although the^ consensus is that
the
Treasury
will
maintain
a
cheap money policy, as indicated
by Secretary Vinson in a recent

MO.—Chris¬
Manners ; has been

added

&

Chronicle)

Financial

CITY,

topher

Waddell

Watching Money Market

The

to

KANSAS

,

debts.

in

the

able

to

and

produce all

and services that

lic

will

an

marked

posits.

expansion

Y-YY' ''

in

bank

staff

Co.,

of

Inc.,

Herrick,

Balti¬

1012

Avenue.

(Special

to

The

KANSAS

Chronicle)

Financial

CITY,

MO. —J. W.
Neighbor is with Herrick^ Waddell
&

Company, Inc., 1012 Baltimore

Avenue.t

'

::

YY

the goods

affluent pub¬

demand.

Furthermore,
under
these
conditions,
with
management and labor cooperat¬

YY:y:;. .':yy •-■yY.!

Y

v-

new

year

first few

should

weeks

give

of

Y Y (Special to The Financial

'i

NEW

(Special to

NEW

The

',

Y

Financial

ORLEANS, LA.—John M.

Fellman

maintain its easy money policy in
order to help it in carrying the

vYJ;

■■

Estate

The

recovery

-

real

NEW
T.

estate

(Special

ting down a large portion of the
great
industrial
plant.
What will come of our present
industrial

strife,
But

it
as

is

to

OMAHA,

The

The

.

Chronicle)

LA.—Travis
Weil & Co.,

.

Financial

Chronicle)

NEB.—Virden

(Special

•'

to

The

Financial

Adair

min

Chronicle)

MAINE —Benja¬

PORTLAND,

is with Coburn

F. Houser

&

Middlebrook, 465 Congress Street.

impossible

(Special

1945 goes into

to

The

Financial

PORTLAND

history, we appear likely, in the
near
future, to make decisions

H.

regarding wages, rules and hours

Chas. A. Day

of

Financial

with

is

Co., Farnam Building.

danger of shut¬

nation's

to foretell.

to

ORLEANS,

Hailey

Richards Building..

?

labor which is in

Pierce, Fen¬

Clark is with Smith, Landeryou &

Bonds

in

affiliated

become

has

Beane, 818 Gravier Street.

(Special

V:,v,

1

Real

&

:

Chronicle)

some

things considered, it is
recognized that the Treasury must

Federal debt.

Chronicle).

HAVEN, CONN.—Charles

become associated
with Chas. W. Scranton & Co., 209

all

enormous

Beane,

G.-Crump has

idea of the trend in that direction.
But

Merrill

&

Avenue, after
serving in the U. S. Army.
•
-

culation.; The

Bangs,

Lennan

Jr.

have

Chronicle)

MAINE—George

and

George

joined the

Mac-

staff

of

& Co., of Boston.

work, the use of modern labor-

of living, for many years

quantity theory of impasse between, management and

are

a

has

Fenner

with Merrill Lynch,

Let

prosperity

rejoined

Pierce,

West Michigan

121

ner

an

of

MICH.—Everett V.

has

in the volume of currency in cir¬

the

Chronicle)

Financial

Church Street.

-

gree

Lynch,

Again, the termination of hos¬
and the slashing of war
industry activities could reason¬
ably bring about some contraction

ing to increase production and saving devices, labor efficiency
production efficiency, it might be and labor management-Govern¬
relationships
in
general
expected that, in the not too dis¬ ment
tant future, prices would decline
which will have a far-reaching
to the advantage of management," effect upon our level of business,
labor and capital.
our
volume of employment, our
cost of living, and our standard
Into
this
situation
which
which seemed to favor

The

LANSING,

tilities

If,
that

to

Esehbach

de¬

labor

so

(Special

'

high de¬

our-!

(

country had

peacetime.

capacities, new products
newAechniques could be ap¬
plied to .the production- of the
fruits of peace, industry should
be

tailed as much as possible, thus
tending to prevent any further

come

ly, we do not have to involve
selves

in

management

and

factors, nor would it
have involved, per se, any

very

such

$521 at the end of 1944.

to the end of

con¬

the

goods

new

our

,

economic

ment,

til

to

then,

supply

money

consumed

ever

ex¬

to have done much

growth

ity

overwhelming public opinion. Un¬

the

seem

be inr

may

various

demonstrated

produc¬

circumstances, the 152%

of

great

so

suggest

would

very

was

the

course,

the possibility of
of capacity operation
in
the
building
industry.
Fi¬
nally—and this is a point which

properly expand with it. We have
already seen that from before the
war

to

as

(cur¬

seems,

dur¬

many years

na¬

herent

it

curtailed

residential buildings

tional production line.
Therefore,
as the
economy of the country ex¬

pands,

of

and,

passed

the

on

been

ing wartime, factories and their
equipment, automobiles and
clathes,'.to mention only a few,

over-emphasized. After all, mon¬
ey is the vehicle by which nearly
from

had

duction

the individual monetary
dollar.
It seems

could only work together

spe¬

are

$644
earlier

,

the

favoritism and

bonds

as

controls; we were
speech, there is a tendency to
a first step towards a re¬
keep an eye on the short-term
turn to a peacetime tax system;
billion by the middle of 1945.
iYrV;
money market.
/
\
we
enjoyed
an
abundance
of
It is this repid
expansion of
It
is
recognized that there
our
monetary and banking system money available for investment;
could be, now that the. need for
that has been rather generally individuals throughout the coun¬
heavy war financing
is past,
deplored both in and out of Gov¬ try possessed tremendous amounts
of liquid funds apparently avail¬ Y some reversal of the elements
ernment
circles. r It
has
been
which made for extreme case¬
able for spending; there existed
thought to be dangerously infla¬
in that direction.
Deficit fi¬
an Y unprecedented
demand
for
tionary in that it constituted, per¬
nancing, it is hoped, will be cur- <
many of the things whose pro¬
haps, a dilution of the value of
(152%)

the labor-man¬
agement conference was that they

cial

per¬

good progress in the elimi¬

nation

labor delegates at

ble.

pe¬

-

income from marketings, and the
gross
national product of any¬
where from 111% to 151%. Under

to government

have

I

slack.

and services than the

responsiThey preferred to hold fast

is generally

issue market,

new

far

It is.a foregone conclusion that

,

as

be so rapid as to
strong deflationary

of

some

ahead

riod

com¬

the

so

average
was

of the recovery is the
impressive if comparison is
made with the average price pre¬
vailing on June 30, 1942. At that
time the average for a $1,000 bond
was
$307, indicating a recovery

tremendous activity i of
the last year and one-half^ ^.
4;
ing

nation's

in their conflicting demands, good
business
and
prosperity should

in¬

fairly

a

the

month

a

cerned, will settle back follow¬

Or; if

withdrawal

half of

with pressure groups exer¬
cising only reasonable moderation

the pub¬

and

reduction

a

gence,

entire

.

to

thereafter it

that

at least

being
in the

felt, therefore, that if the country
exercises only reasonable intelli¬

by the Federal Reserve Banks

and

are

or

expanded $213 billion, the
Government securities held as as¬
sets

by

that

force, the civilian population has
ample ' reserves ' of
purchasing
power, coupled with vast unfilled
needs, with which to take up at

And

point

But

felt

$622

more

January.

by

capacity

constitute 5

of
balanced

Government's

cations

against

$1,000 bond

The scope

Indi¬
busy

ductive

output

has,

currency

be ahead for the new year.

For example,

last,

a

and

attempting to forecast what may

nized that much of the refinanc¬

least

by

in

30,

price of

year

its effects should be tempered by
the tremendous reserves of pro¬

the

bank
deposits. For
in the six years from
1939 to June 30, 1945,

example,
June 30,

of

customer for

into

way

fades away
there is a tendency toward con¬
servatism in underwriting circles

.

a

Government's

Some

the liabilities of these in¬

stitutions

lic's

:Y>;TIie Interest Rate Problem

bank

been

course,

hands

its

commercial

rise

cash.

the

found

a

old

the

.-

mone¬

either the Federal Reserve Banks

deposits

debt

was

so

mercial

in

had

had

released

40% of the Government's increase

bank

I

fi¬

to

demili¬

of Yus

these two* ex¬
likely contingency.
felt, and I still feel, that if
civilian buying spree develops,

tremes

that

of

rapid

most

spending
a serious depres¬
predicted
by
another
It appears to this writer

as

thatY neither

by

as

expressed

the

As

enemies made

our

more

Nov.

on

the turning point the

was

school.

a
constituting
threat to future economic stabile
ity. Dissatisfaction has been wide¬

many

-

than

clear

a

place in that quarter of the in¬
vestment market.

pe¬

real¬

we

brings about

sion

viewed

is

before

Amott, Baker

affords

average

picture of what has been taking

months

tailment of Government

another phase of the
Government's wartime financial
which

in

had
so
long
awaited.
The great economic question was,
were we in for a post-war boom
and inflation as predicted by one
school of thought, or was the cur¬

There is

operations

A glance at the

country

The Inflation Threat

Certificates of Indebtedness,
and thus creating
supplies of com¬

year

Here

reasonable interest return.

a

a

thought possible.

those

are

four

reconversion

upon us

tarization

vocal in the presentation of

arguments

of

talked

was

possible

want interest rates to decline are

who feel that savings are entitled

collapsed;

of the defeat of

found

y'y
v-V'
All through the war, then, we
have ; had
the
Federal
Reserve
Banks' buying Bills and Certifi¬

existed

ized it and the very thoroughness

foreseen.

be

now

that

directions.

price

on

much

riod

-f An yivl

v% nttr.

new

conditions

,

Sept. 2, Japan surren¬
dered unconditionally.
Thus, the

However, for what the remark
may be worth, we can probably
say that, as a group, those who

times

than

Government's

boom

lated,

technique.for controlling interest

Banks, largely without
recourse to borrowing, and
thus,
as a
whole, to maintain their sup¬
plies of reserve balances at all
greater

Av\.+'rt

'

presentation

Germany

ticular, what will be done with
the;

clear

other

foreging
a
reasonably
of the war-

the United States during the first
half of 1945.
Then, on May 8,

will thereby slow up capital formation, hinder technological improvements, impede economic
progress, and may eventually lead
to unrestrained spending and a
runaway inflation. How this question will be answered and, inparfVia

constitute

remarks

of

millions

of

pe¬

In fact it has been
aggressive than in some

more

purchasing power.
is hoped
that the

It

over a

riod of years.

material loss

a

of

sections

at

of

(Continued from page 3131)

-

:

which

with the re¬

other

in

vival

the investment market

dollar had suffered

Policy Can Prevent Inflation

trend

it is

us

hope that these

made

wisely.

to come.

decisions

(Special

to

The

Financial

Chronicle)

PORTLAND,

ORE.—John
A.
Car rick is with John Galbraith &
Co., Porter Building.
#

I

(Special

to

The

Financial

ChronicleI

RALEIGH, N. C.—Jesse F. Big¬
gins is with Southeastern Secur¬
ities,

Independence

Charlotte, N. C.

B

u

i 1 d i

n S,

v

"

■

•

•

(

'v

'

*

'

Thursday, December 27, 1945

& FINANCIAL CHRONICLE

THE COMMERCIAL
3162

from 1929 to

1932, the years lead¬
into the Great Depression,
steel prices declined hdrdly at all,

Mark of 1946
(Continued from page 3133)
in all parts
of agriculture.
However,
I
<*m
particularly
pleased to have the opportunity
of talking with you at this time
because of your deep interest in
ers

balance be¬
tween agricultural and industrial
production and income. For I be¬
lieve that we are now face to
face
with
some
serious,
farreaching questions and decisions,
maintaining

proper

philosophy

dealing with that very

interlocking economic inter¬
ests. I believe we all need to take
of

armies.

Colonies

in

the

In

those

was

if he had

A farmer was fortunate

of oxen or a team of
horses to pull his wooden plow.
Many
had
only
their
human
strength and mattocks and flails
that had changed little in several
yoke

a

Nineteen out of
20
people were needed on the
land to raise enough to
supply
their own needs, plus a little ex¬

thousand

tra

years.

for

twentieth

the

trade

to

thorough under¬
manufactured goods.
/ y. : ;y,
standing, give-and-take planning,
and broad scale action by all parts > With the industrial revolution
in industry came the start, of a
of our economy.
y
;;
call

which

for

,,

revolution

is1 still

Agricultural Outlook for 1946

Department of Agriculture
Extension Service re¬

The

the

and

cently completed its annual Out¬
look for 1946. To me that Outlook

of many

most significant

the

is

because it marks the def¬
inite transition from a war to a

years,

and

Charts

farming.

peacetime

tables in that report are

far more

If you use
through the stir¬

than lifeless statistics.
them

trace

to

crucial period we are now
those economic
curves
become
a
cardiogram
of
the
heart-beat of the Nation's busi¬

ring,

ending,

ness

ror

They mir¬
man in the

and

agriculture.
the drama of the

field

the

and

in the factory

man

cal

quired to grow
into
manufacturing

trade

and

professions.
Before World
War I, farming had progressed so
far in technology and mechaniza¬
and

one-third of

that

tion

could

lation

popu¬

our

farming

the

all

do

for
the
other
twocould do it better.
By 1929, one-fourth of the popu¬
lation could handle the farming
end of our economy.
And now

necessary

and

thirds,

greatest farm output of
time, with less than one-fifth
our people on the land
of

riod
all
of

through a pe¬

have just come

we

these
.charted
curves,
depicting farm and fac¬
tory output, wages, profits, farm
income, taxes, and other meas¬
ures
of our great
effort, surge
steeply up to 1945—and end with

any

of

son

the

cast

to be a

doesn't have

One
enth

that

horsepower,
people were re¬
food and could go

replaced

power

machinery of war, and more
goods for American living than
ever
before
in
history.
It is
symbolic

mechani¬

As

on.

fewer and fewer

turning put more food and fiber,
more

that

the land—one

on

going

seventh

a

doubt.
expect that
on

one man

son

of this

future

sev¬

to fore¬

It

trend.

powerful for
It isn't too much to

is too sustained

and

- before
many years
the farm will be able

produce all the food and other
products needed for 10 in

to

farm

the cities.

Where

That's
Let

the
us

question.
back to those charts

go

moment.-

a

with

demonstrate
clarity
that

They

undeniable

when

all parts of our
productive
machinery
together,
as we did after Pearl Harbor, we
can
size up the job to be done,
set
our
goals, and deliver the
goods on schedule.
They show
that everybody benefits in meas¬
urable,
dollars-and-cents
terms
we

gear

when

our

busy.

As

rose, so

are

productivity

did the income of work¬

the cash

and

ers,

factories and farms

industrial

receipts

from

farm

marketings—right up
to¬
gether, as always. It is no acci¬
dent that in 1945, with the larg¬
national

est

income

.

in

history,

farmers also have the largest net
income they have ever earned.
That net income is

is

times

seven

$13 billion.
net

the

It
in¬

farm

of

1932, when our produc¬
tive machinery was badly out of
balance.
Furthermore, I believe
come

that

farmers

that

this

come

can

well

all-time

was

earned

be

record

proud
net

by large,

in¬

effi¬

cient output

of food and fiber for
the
nation
at
very
reasonable
prices;
it
was
the reward
of
genuine service to our country
and not from gouging the public

.

New Farm Skills

7 ;yy y'■■

•'? What has brought about these
astounding gains in productivity?
forge
ahead in wartime, turning out a
third
more
production, with at
least 15% less effective labor than

How did farmers manage to

years? The answers en¬
thousands of items of
research,, invention,- and devel¬
opment of new farm skills. Under
broad headings they include such
things as increased mechaniza¬
tion,/greater use of fertilizer and
lime,1 a good start in conservatiqn-type farming, improved con¬
trol of pests and disease, better
feeding of livestock. Outstanding
is power. It is estimated that in

in prewar
compass

1940

farms

our

another

or

had

in

than 174 million

more

horsepower,
ing IV2 million tractors.

ip its time of need.

have

farmers

the

comprehensive

most

of

the

farmer's

techno¬

logical progress along all lines is

Today farm¬
producing twice as much
per worker as they did in 1910.
They are turning out two-fifths
output per worker.
ers

are

worker than they did in
years
just
before
World

more

per

the

same!

More of the

/vy..-

-^yyyy '

-'»■

Perhaps the key piece in the
jig-saw puzzle of the future is
the rapid change in farming; The
farmer has been riding a definite
for more than a
century—and that curve is me¬
chanical power. Power has swept
a

curve

tidal

across

wave

our

farms, and has changed them be¬
yond recognition. The farmer in
the United States has become one

Of the most lavish users of power
in

the

world,

and

between

far

and

a

century

We are operating,

few years ago.

of

us, as

which

in

science,

/• Consumers

structures

mechanical

much

tear

we
down

is

increa^ng

The

meaning of the march of
technology in agriculture would
be
incomplete
without
taking

it

but

pers.

-

It

everybody

of '•

millions

needed that food

as

hady no

consumers

lated;

went down.

pros¬

to

nostalgic
the farm was self-sufficient, and
about

the

again?

unemployment

Today

the actual fact is
never
has been
100%
self-sufficient.
Even
in
Colonial days the farmer had to
trade some of his corn and tobac¬
co
for
a; musket
and powder,
but

threatens,

drift

other

and

the

Now

less

is - becoming

ing power—or he will rapidly go
bankrupt. The absolute truth is
that the interests of each group is
interwoven with the interests
that none can consider

others

of

separate from the
welfare of the whole nation;) "Mewelfare

its

First"

as

programs

that

launches

tion

and

to

.

only

The ideal—the kind of

groups,

that

freedom

problems—indeed we might

have

to

I

iall

the
gives

J'- %/':•.

live.

we

this point because

stress

most urgent needs,

our

look into the doorway

namic

-

one
we

as

of the dy¬

The

is unity.

ahead,

age

great question mark, and one that
must be answered democratically,
is

"How

are

have

be

going to use the

we

production capacity
up?"
That can't

tremendous
we

built

answered by

one

group

alone
and

—it takes a combined, sincere

intelligent
who

answer

work,

trade

by

all groups

in

manage

or

some

foods: that

when.work-

system

is

philosophy

to

ciety in which

of

in great demand

abundance

democracy

•

enough

turn

around :to

scratch

the

us.

plan
and
coordinate
their policies and programs for
the welfare of the whole great so¬
them,

to

disrup¬

the
war—is
for
acting together in

through

have

can

successfully

; so

us

don't

mand

;

took

that

We

alongside a full-scale
of industrial goods.
A
balanced expansion of all parts of
our economy would automatically
solve most of our supply and de~

are

the nation.

■

the United

States

4; y^y*''
from^Vecent: experi¬

capable of producing.
We

know

kind of

an. econ¬

For one

thing, it

this

ence

what

omy

involves.

city/ workers,

that

have
plenty of food dollars to spend,
and they spend those dollars right
means

farmer's

'counter.

Last

over

the

year

the public spent more than

We

account

the

fast-rising

pro¬

choices;

been at

times, or how much they
plenty

could eat when there were
of

food

dollars

in

know

We

the
now

pay

en¬

that the

elas¬
had supposed; and it

turning out twice

he had in
War

1910.
II

as

At the

his

much

end

of

productivity

two-and-a-third times great¬
than in 1910.

was

than

we

shrinks and expands as our econ¬
omy

shrinks and expands. Fam¬
with
low
incomes subsist

k-ind

prices

per

mainly on flour, beans and pota¬
toes.
As they get higher on the
income scale they eat more eggs

output,
know

unit*at the expense of
efficiency and jobs.
We

what

that

various

was

tic

ilies

with

er

only - two
is a .highly

involves.

been

down

segments

and
add

of

our

trying1 to shut them¬
protected
compart¬
ments, setting up trade barriers,
and
struggling
for
special ad¬
vantage. We saw this kind of an
economy
evolve after the first

economy

selves

into

vegetables. Still higher they
dairy products and meats.
And only when they get near a

a

before,

It's

-

..

:

\

and

primary

food,

,

able

food,

the

to

mission

and

Nation

of.,-::;

ally,

needs.

:as

well

we

-

«

know,

farmers cannot go down the road
.toward

//

high-level

production all. y
alone. They are but a small part , /
of the total economy.
If the rest
of
the country,, drifts
aimlessly %*;•:
into
defensive /position,
if they
/
permit the assembly lines to run .y
in slow motion, if they allow the
economy - to;, spiral into inflation, <
then
agriculture will be forced
'•

high-level

income

do

they

eat

fancy vegetables.
out in the last few

lots of fruit and

What

stands

years in consumer
and
more
meat!

demand? Meat

inevitably

It

in¬

'I
If

this:

to

we

people of this country to

back

go

down

comes

plans.

sound "retreat"

to

stead of "advance."

want the

its

revise

to

:

We'll have

have

to

to

eating

,

is

do

mostly, flour,
then all we

let

to

develop.

economy

.

;

low-level ,7

a

Then farmers
for

.

>

won't have the good markets

beef, high-grade milk, and
quality
fruits
and
veg¬

If

*

'

'

»

'

t

■

,

„

-

want people in this coun¬

we

high-level diet—
protective
minerals, and proteins

have

try

to

one

with plenty of the

vitamins,

a

we've

—then

got

develop

to

a

full-production, full-employment
economy, with lots of food dollars
going into paychecks.- And- those
dollars have got to reach down
to the large—the shockingly large
—proportion of families who even- during1 the
war
boom haven't W
been able to earn enough to af- 4
ford

American

decent

a

These l:f, low-income

.

sources

of




But

keep

this

difference

in

!:0"

diet.

familieS,

whether in that bracket from lack' ;
of

education, lack of opportunity,.

underemployment,
ment,

drag

a

are

or
on

unemploy**;
the future. ;

v.-:

}

K

v>

'

They/are-low-level-prpducersand^
low-level

consumers,

and from a'-,-

practical,'
business ^viewpoint, ;
yvwithoutregardto' the *; humanitarian and social aspects of . their . vyy",
plight, are mighty poor customers
of both farmers and business. The ; il
1

.

challenge ,of i underconsumption
certainly is not going to be less in

"f
;

ahead; it is
one
that we must meet with ef- /
fective
action
if we expect to
the

immediate

build

years

strong, productive

a

States..;

'
■

.

United ;v

;•J

;

The Right Kind-of•

Econbmkj'/4^'

Milk!
Butter!
question about

;:W

by intelligent, efficient production, by sound price policies, and
ball.

,

do much to write

;

v-;

■

Farmers

:

the

generally keeping our eye on
'

can

ticket in the kind of
farming
they develop.
If they
want to plant only wheat and potheir

own

y
,

tatoes, that's the easiest thing in
the world to do. Just have wide-

spread

unemployment and there

would

be

heading
of

kind

would be

fat

doubt

we'd

;

be y

wheat and potato
The results
hard on the markets for

for

steers

dairy

little
a

,

economy.

from

products

the

from

States, and citrus fruits
fornia and Florida.

;

Corn * Belt,

the Lake •
from Cali- y
\

eat
power faster and
lots of meat, milk, poultry, fruits,
Farmers
mind: Where farm population has World War.
kept pro¬ it, the farmer's greatest oppor¬
faster.
and
vegetables,
they can help
Let us go
back to the early gone down, the number in non- ducing, but the rest of our pro¬ tunity for enlarging his market
write the ticket for that kind of
days in the United States.
The farm work has more than dou¬ ductive force retreated into re¬ -—•and a high-return market, at
consumption. They can do it by
phrase "embattled farmers" was bled. So has industrial capacity. duced output and reduced jobs to vthat—is not abroad, but right at
driving for full employment and
more
prices.
For
example, home in the great food needs of
more maintain
than poetic expression. at We have more workers,
his

Fruit!

There is no

V'

.

Contrast that with 1933 when :/;•Standards
..
•
consumers had only $11V2 billion
We know what we ought to do, %
food dollars—one-fourth of con¬
and what we want to do, in the
4
sumer outlay—and after the midyears ahead. J But
we can't get ;*:
leman took his charges there was
anywhere just by planning now. ,
mighty little left for the farmer.
We can get started by setting the >
We
haven't known,
until re¬
right kind of economic standards •
cent years, just how hungry the
and organizing our combined ef.
families
of
this
country
have forts to reach and surpass them—

"frozen" economy, the
that
seeks
unduly
high

1942 the average

as

One

Production

aver-

<:

lay.

defensive,

we've

industry. By
industrial work¬

have

actually

the

•

V
i

-

plantings.; Farmers

all; the

of

billion for food, nearly one-

$30

third of their total consumer out¬

velope.

Problem of Balance in

kinds

than

eager,

their

etables.

far

a

group

rest., of

the

to

another,

aimlessly down the road to

out

States, call for 356
of crops—14V2 mil-

acres

supplying

high

have

we

tackle

good

under which everybody
have a fair/chance to. share in

the

and

them,

loss

bring

can

disaster

ultimate

it

output

with buy¬

markets and customers

so

let

products

A farmer must have

so.

to

scarcity. We can, if we get to¬
gether, bring all parts of our na¬
tional production machinery into
an aggressive, well-balanced pro¬
gram of production, employment,
and consumption.
We can main¬
tain'a full-scale output of farm

lamps,
clothing, tools,
manufactured
goods.
farm is less than 10%

buckets,

going

we

choice.

better

farm

the

that

our ques¬

No More Drift to Scarcity

back-to-the-land move¬

;f when

ments

put

we

Is it going to happen

Are

a

econ-

beans, and potatoes,

v

happen again?
~

advocate

k -)

•

philsophers may

arm-chair

some

*

/There's where
tion mark.

dream
days when

be. pleasant

more

However,:

%,

,,,

So great surpluses accumu¬

jobs.

,

may

road

er

,/

•

synchronized,

to

acres

'

'

also

duction capacity of

World

normal

There is ihe- lesson of a de¬
imposes the
need
for
careful
planning and fensive, "4' lop-sided,; ,/ restricted
self-discipline on all groups.
If economy. It's a simple one. We
the power in one part of this can all remember it: Industrial
complex economy is turned off, prices * stayed y up — production
went downhill.
Farm production
or the; machinery stalls,: the re**
action spreads rapidly through all stayed- up—farm
prices
went
parts,
and
everybody
suffers. downhill. - Unemployment Went
Conversely, when all parts are up—consumption -of - all
goods

nities,

main

Increase in Industrial Capacity

into

lion

buy as much as .they, needed,: no
matter how
cheap it; was. 4 For

and

together again in new
and strange forms, such as syn¬
thetic rubber and plastics.
Such
an age brings great new opportu¬
them

put

million

before. But they couldn't

as

for

words

recently

suggested

ready,

their

of

produc-

pre-war

of

end

tion goals for next
year,

age

buying power.,•••;>'.•

of the !atom.: It is a world

power

of

other

are.

fourth

the

full-production

a

The national farm

omy.

wheat,
cotton,
livestock,
milk, eggs—and the whole list of
farm products—soon had only a
or

since

move

products sink right to the bottom.

third

tricity, and gasoline, and which is
on the threshold of harnessing the

eco¬

meat-milk-and-fruit sort of

Corn,

part of a ter¬
rifically high-powered economy,
one which moves by steam, elec¬

each group

full

,

all

among

has made the first

toward

war

schedule—in

in free markets,
prices! of
their

the

andsaw

generation ago, or even a

a

the

well.

<

producing

Farmers,, kept
blast, 'Operating

tangible

along?

get

painfully

remember

You:

is a
seri¬

now

more

farmers

did

How

Agriculture,
nomic groups,

human stomach is far more

The future is clear.

like

ago,

of

tractors—a

measure

city folks

matter than it was

ous

includ¬

about 2
gain of more
during the war. Prob¬

Today
than 40%

ably

form

one

mechanical

million

and

different

••

Agricultural Production Goals

cut by more than

was

Aluminum
prices
less
than
5%
but
production was slashed; by 40%,;
Automobile prices fell only a lit¬
tle over 10%, but assembly lines
were
throttled down by 75%.

War II.

Mechanical Power in Agriculture

upward

far

States. /•.y..."y
;•*<
•' V-;
; ■. y
■' ■,*•,•>..*;;

slumped

get back to my original

Interdependence

farmers

even

now?

going

we

are

theme.

output

fully-employed, well-fed United

a

■

four-fifths.

Each

potential
1 /i.Y

Interdependence

Economic
Now to

sell-sufficientand

big black question mark.

a

but

produce

before.

ever

customers.

a

handicraft.

low-efficiency

crude,

than

,

farmer, then, has more

farmers?

were

agriculture

days

more

can

20 people

out of

19

when

wise,

indus¬
Government,

and

labor,

try,

the bulk of Washington's
How could it be other¬

made up

in farming,

developments

It

Revolution.

the

time

the literal truth that farmers

at recent

fresh look, right now,

a

of

the
was

Each unit

factories.

ing

If

farmers

want

;

people to

:
*

■:

JVolume

162

THE COMMERCIAL & FINANCIAL

Number 4450

■

full production, which will make
possible a better balanced, diver¬

ing to.be the lead

sified

to

easy

agriculture—one
the

on

the

kind

needs.

land

of

It's

the

is

the

country

of

agricul¬

machinery

kind

produces

ture

higher prices. Some may deal came. But according to my
this rally
prices. But as peo¬ terpretation
ple seldom pay attention to longer had the strength
what they don't want to hear, point to still higher prices.

will¬

are

horse in trying
whole economy to¬

pull our
gether on the proper paths.
know
how the production

and

foods

that

already written. ' They

,

Markets

goal

in¬

with lower

Tomorrow's

You

3163

CHRONICLE

bearish

the

works. The goals for
by crop, and almost

will find

stories

no

to

So

I advised that:

small audiences,

if they find
American
Steel Founders
Walter
.acre by acre, throughout the en¬
any at
all.
In addition to bought at 41, was to be sold
and the most opportunity.
tire farm economy, point the way.
stock market forecasts you at 42
(currently about 4iy2)
toward what we
should do to
;■
(
>That is why it is vital at. this
will
shortly begin reading though stop of 39 Was still in
achieve
full
production.
We
know
time to do some serious thinking
__By WALTER WHYTE=i. splendidly
about such economic standards as exactly how many acres of sugar
conceived, and effect.
the parity price formulas, which beets, how many acres of early
well presented prognostica¬
Flintkote bought at 36, stop
A minor rally now indicated.
can
affect the pattern of future potatoes, how much of other crops
tions, on the state of future 35, was to be gotten out of
and livestock we need to feed this
Suggest using it to pare long
production.
These
economic
business. All of these will about-37. Stock is now about
standards
are
fundamental ;to country, on a decent basis and take position to the bones.
Tech¬
care
of our obligations abroad.
make interesting reading for 361/4.
equality
for
agriculture.
The
nical rally is as had as tech¬
farmer should hold firmly to the Farmers could walk into a con¬
the
long winter evenings.
nical reaction — both spell
N. Y. Central acquired at
ference now and indicate to in¬
parity principle, which is his first
They also will be excellent to 3iy2,
exactly ' what they are further unsettlement.
stop 28, was to be sold
and to date his best measure:of dustry
start
fires
with
when
the
piles
the balance of agriculture in the ready to produce and, by the same
anywhere across 32. It's now
*
*
it
they make in the corner begin about 341/2.
whole economy. If parity needs token, about what they would be
ready to consume.
They know
to
be
toppling over.
/ changed,
I believe the how many tractors, (-how many
There were two old stocks,
t The end of the old year and
farmer
and
his
friends
should
Aii'i;-:'/ *•//:*A///:/
trucks,
how
many * milking hia-\ the
Lockheed
make thq changes.
bought at 321/2,
beginning oi the hew has
\ »
« "■
;
In order to keep up with
chines, and how many hay balers
stop 39, get out about 42. It's
they would like to/ have.-They always been a signal for the the
Parity Formulas Out of Date /
parade of annual forecast¬ now about 4iy2. Last one was
could
present 'concrete, specific rumors to start. Not that the
But I. must frankly admit" that
ers
this column should also
Western Union bought at* 52,
examples of what lies ahead, both stock market ever needs a
our ;; present•'.! -parity
formulas,
make like a pundit and say
for industry and agriculture,
/
based on a period of a generation
stop 50, which was to be sold
change of years, months or
what
to
Now why
wouldn't the same
expect of the market across 53.
ago, ; produce; some
strange re¬
(It's now about
days to. start one of those
work
all
the vway
for 1946.
In order to do this
sults/when applied, to. the high- principle
T-hear-they're-gonna' ■ ■ things.
53.)!,/;/ /
■',///," ;
around?
Can industry tell how
powered moderm agriculture we
it would be best to go back to
.'iv" *
*
*
But a year-end lends some
.have in 1945. In brief, price sup- many radios, how many suits of
the last column of 1944 and
Before the end of this week
authenticity to the
sports at 90% of parity, on the clothing, and how many auto¬ sort of
mobiles this country is ready to;
present basis, might well cause
usual stories that make them pick sentences out of text to you may sell them all. With
production of some much-needed produce in 1946?- We believe that hard to: resist. There is some¬ prove my infallibility. Luck¬ the
exception - of Lockheed
the farmers of this country, a^e
crops
or
products
to
decline,
ily I am too lazy to do this. the profit won't buy you
thing about the change of the
while over-encouraging some of ready to lead the way into a new
And besides I never knew
the
less-needed.
For
example, period of economic cooperation annual cipher on a calendar
yachts. But frankly I'm as
who made money much concerned with pre¬
milk
is
now
about' 109% ; of aiming toward full production and that carries with it a kind of anybody
full employment on farms and in
out
of
pointing to the past
parity, and we haven't been get¬
venting /losses,
or
cutting
factories. Agriculture is willing to magic
to setf imaginations
ting all we need. At 90% of parity
and offering it as a guarantee
be the lead horse. It; is not, how¬
them, as I am in making
soaring. And'nowhere has it
many
dairy. farmers
would
of the future.
So,
this
yearso much space and breadth to
sla ughter their cows for beef to ever, willing that the rest of the
profits. '
■ - l ■ ;
team shall lag in the traces and
end, I'll leave the annual fore¬
cut
their
losses.
Soybeans are
move
around in as in the
expect
the
farm
to
carry
the
casts to those who enjoy do¬
well over the comparable figure
If you get out of the entire
There is little
whole load. Farmers have tried it stock market.
for parity, and we've had diffi¬
ing it. ; Me?
I'd rather have
before with disastrous results to reason to assume that with
position
you will have all
culty,in holding the acreage Up.
another drink. Besides I don't
themselves and to the nation. If
cash which may not be an
the coming of 1946 .this con¬
What would happen to this crop
know
what
will
we are going to use the great pro-,
happen 12 ideal
at 90%?
Gn the other hand, the
condition
in
today's
dition will change.
"On the
ductive capacity of America we
months away. I have all I can
price; support of 90% bf present
markets. But Unless, and un¬
must have a' well-matched team contrary, with all
the
real
do trying to figure them, a
parity on eggs may give us more
with agriculture, labor and indus-;
til, I can see higher prices, or
things awaiting to be done week ahead.
eggs than consumers will buy.
;;
try pulling together to achieve there is
at
least
a
maintenance of
What agriculture really wants
plenty grist for the
the high
standard of American
and needs for the long pull, is
rumor mill to start grinding.
trend, I see no reason to ad¬
living we are so capable of pro¬
To get back to the imme¬ vise- others
parity income. That is, farmers
doing what I
1
^
ducing.
,(should have a fair share of the
diate past and the immediate would not do
myself. If the
national income, proportionate to
future: A few weeks ago I situation should turn for the
a Most of the stories you will
1946,

which, in the long run, will
bring farmers the most stability

crop

';

Says—

.

.

.

'

-

■

.

-

-

of the national
farms, adjusted for
costs
of
producing

the; percentage

population
the

on

relative

and

living

-

the

* on

modern conditions.

the

over-all

add

that it is

goal

under

That could be

—

might

I

and

agriculture has

one

reached

never

farm

except when pro-

for war.
Then,
goal, the parity
prices
of
.given
commodities
should be flexible enough to re¬
flect
changing
conditions, / in¬
creased efficiency, and changing
needs.
They should make a pat¬
tern of prices, which multiplied
by output, would yield a fair

educing

all-out

within

this

of

share

,

big

the

national

income.

Further, parity prices in

any case

should be such

as

the most efficient

cultural

use"

would promote
of our agri¬

use

resources—and

"efficient

production of needed
and livestock, and stimula¬
tion of conservation-type farming.

A

designed

bill

to

strengthen

Gov¬

corporations with assets
estimated at $20,000,000,000 was
by President Truman op,
6, the Associated Press re¬
ported from Washington, adding
that the President took the occa¬

signed
Dec.

sion to make this statement:

"In requiring these corporations
to submit their
budgetary pro¬
to the Bureau of the Bud¬
get; and their expenditures to an
audit by the general accounting
grams

office, the Congress has made a
forward
step in furthering the
business-like management of Gov¬
ernment."

Later,

expressing "much satis¬
in

signing the measure,
"for I have long believed in the

not committed to any par¬

principle it embodies," the Presi¬

ticular

formula.

dent said that because of the late¬

should

consider

am

with

ities
into

do

I

account

believe

various

extreme

the

many

changes taking place today.
>

As farmers study the

tionmark

we

possibil¬
taking

care,

big

great
;

;

ques-*

there

is no
they
want to go. ■ The farmer likes to
produce. His main aim in life, his

doubt

of-r 1946,

as

:

toi the

direction

contribution to the welfare of the

country, V is
crops,

v

tq. /harvost'-j

bumbeF

turn out well-finished live-

Stock; send floods of milk and
tcainloadS' of; eggs to market, land
,

otherwise
food

provide
supply.; - A c: ,y .

A How

can we

E

bountiful

a

drive for high pro-

d action and, for full; employ merit?;

their -pairt"; Of the
They could get together

Farmers A have
answer:"

right now with industry and with
labor, and talk about: national

•goals .and: nationalpolieiesnand
unified planning toward all-out

prosperity.'';:r- \ -.

-

;

A Conference on Production Needs
;

..

Farmers have their guide




bodks

ness

of the time it would not be

possible to include budget pro¬
for the corporations in the
budget he submits to Congress in
January, but he added, accordinggrams

to the Associated

Press:;

to; dp

have

with suggested

->•./,/.:•

"I

shall, however, submit : by
Spring these corporations'
budgets for the fiscal year begin¬
ning July 1, 1946."
In v its -advices - the
Associated

next

tions

headed by Senator

is

Byrd prices

(D.Va.), one of the bill's sponsors.
From the Associated Press ac¬
counts of Dec. 6 we take the fol¬
lowing:

•

••

Present at the

'

'

'

signing were the

equally specific
stops. Two weeks ago I didn't
with

the

like

complexion of

William

tatives

Democrat,

of "
Case,

M.

Whittington,

Mississippi,

and

Republican,
of
South Dakota. The Congressional
Francis

Economy Committee which Sena¬
tor

Byrd

heads

had

been

cam¬

paigning for ten years for tighter
financial
tions.

It

of the

corpora¬

Senator Byrd who
their assets
at more

was

estimated
than

control

$20,000,000,000.

better I'll have no hesitation
in

as

More next

But

these

they

created

a

were

[The

coincide

time

stocks

sold

be

on

They

thit

in

presented at

are

only.]

v

.

99 WALL STREET

NEW YORK 5, N. Y.

any

be disposed

of if the stops were

expressed

necessarily at any
with those of tha

lamborn & co.

for the next few

minor advance or

Thursday.
Whyte

those of the author

weeks. So last week I advised
the

not

Chronicle.

situation which did

not bode well

views
do

worry.

—Walter

,

ticle

Until then let

so.
man

the

they were fantastic.

whatever

saying

the other

market and warned that some

sugar

violated.
Exports—Imports—Futures

Wood Returns to
N. Y.

After the break,

the rally
DIgby 4-2727

Banking Dept.

Jchn Frank Wood, who has been
leave from the New York State
Banking Department serving as
1st Lt. in the U. S. Marine Corps

Pacific Coast

Reserve, has been released frbm
active duty and has resumed his

Securities

;

on

Established

18S6

H. Hentz & Co.

said:

bill

specific

sponsors,

position as Deputy Superintendent
and Counsel of the Department,
Elliott V. Bell, Superintendent, of
Banks,; said on Dec, 15. William
Mertens, Jr., who has been Deputy
tions frtcluding the issuancefof ^se¬ Superintendent Vand Counsel • in
curities, as welP as his approval; Miv Wood's absence, has resigned
ofthedepositbries-oftheirYunds.! from the Department's staff to ac¬
The legislation also' prohibits: the-' cept a partnership in the firm of
setting up of additional corpora¬ McLaughlin & Stickles of 36 West
tions
without
congressional au- 44th Street, New York, N. Y., with
*thority;and-the Federal reincor po- which he was associated from 1934
1938.
Mr. Mertens was for¬
ration of those now operating un-; to
der state charters.
\
•
merly Law Secretary to Justice
v-The Congressional Economy Isidor Wasservogel of the Supreme
the

at

Senators kind of storm was ahead. Last
Harry F. Byrd, Democrat, of Vir¬ week the storm came and the
ginia, and Hugh Butler, Repub¬
lican of Nebraska, and Represen¬ reasons for it were as varied
measure's

Among pther things,
requires :/- approvals of i
•the. Secretary of the Treasury of
financial; plans
of/ the corpora¬
Press

of

purchase

the

four stocks

about

the control of Congress over

faction"

will

hear

ernment

means

crops

I

Federal Corporation
Control Bill Signed

.

J

Orders Executed on

;

'

•;

:

'■
Members

,

7

;

-

•

\

1

•

--

.

Pacific Coast Exchanges

been

paigning for ten

for tighter

financial- control

years

of

cam¬

Court, and was a Deputy Assist¬
ant District Attorney of New York
,

the corpora- County.

/ i.

'

■'

Exchange

York.-Curb

Exchange

York

New

Commodity

Schwabacher & Co.

Chicago
New

Members

'

Committee which had

New

;

Stock

York

New.

Orleans
And

Cotton

Exchange

Inc.
Trade

Exchange,
Board
Cotton

other

of

Exchange

Exohanges

-

'

r
''

Exchange
Exchange (Associate)
Chicago Board of Trade

New

York Stock

■

:■'

' •'

'

New York Curb
v

; Teletype

Private Wires to
San

Principal Offices

—
Santa Barbara
Oakland — Sacramento

Francisco
—

N. Y.
NY 1-928

New York 5,

14 Wall Street

OOrtlandt 7-4150

Monterey

N. Y. Cotton Exchange

NEW YORK 4,

?

CHICAGO
'

'

DETROIT

GENEVA,

Bldg.

N. Y.
PITTSBURGH

SWITZERLAND

Fresno
0

and already compromised no negligi¬
powerful lobbies in all ble portion of the nation's future-.
Consider:
"
r
nistory, to hold prices down, and
In October of this year serious
thereby, to stop the flood-gates of,
crimes
increased
a runaway inflation." I think it is
19%
over
the
fair to say that the Government's same month last year.

the

Problems of the

Justice Department
control

possible

every

of

aspect

is

the induction process.

the Selective
Training and Service Act makes
power,

provision for the performance of

quasi-judicial functions within the
administrative framework.

Registrants who are dissatisfied
their classification may ask

with

hearing

a

obtain

to

defer¬

a

ment, or a different classification.
Tne local Selective Service

registrant be dis¬
satisfied with the decision of the
the

he has

local board,

with

and, in ex¬

the

to

circumstances,

Such

Due

which

remedies

act

the

is

account

Asks

Labor

trative

Process

its

two

opposed /the

growth
of the administrative process.,,; i"
♦'
This opposition, to quote Chief
Justice Stone, is "reminiscent of
the distrust of equity displayed
by the Common Law judges and
of their resistance to its expan¬
sion."
Instead
of
resisting
its

growth, the Chief Justice said, the
legal profession should seek "to
the

for business,

come

subdivisions of
management,- to cooper¬

labor and

great

ate with Government.

tional

moving. //

big business in

life,

well

as

;

^

our na¬

management,

as

and must be considered

such,

as

/

responsi¬
bility than just making monev for

undoubted
agencies

advantages
efficient

new

as

more

members.

own

'

It must cooperate to create high
levels of employment

"y '>

tion.
We

and produc¬
■"
", > "

'

bickering and squab¬
bling like back-fence cats, where
if

are

with all

antee, against abuse."

■'
special

Your association's

How foolish
tle decimal
not

given

y'h'Cy'fi ]\yyfi-r

/,

to

we are

intact, by putting
own greed.'
'*./ '
No

mittee

administrative

on

since

its

formation

in

They exist because people are
willing to pay anything for what
they want and can get. Such a

It

all

Let's

jump

that

is

to

eral field in

say

gen¬

effort to improve

an

procedures. ""

our

On

As defects have

been

pointed

out, we have tried to correct them.
We have tried to make of the
administrative process an efficient
and withal, fair implement for the

functioning

proper
ment.

'

of

govern¬

:

For

the

past

several

months

your
special committee on ad¬
ministrative law and the Depart¬

ment of Justice have collaborated

with

the judiciary committees of
both houses, at their specific re¬

quest, in

seeking

to

arrive

at

Clark

I

Bill which would be accept¬

think

the

rewarded with

success.

has been
/.

The

McCarran-Summers

The

final

draft

of

the

\

McCar¬

Bill, recently re¬
favorably by the Senate
Judiciary Committee, may be de¬

ported

scribed

of

as

a

due

restatement

trative agencies.
It

for

process

.(■

H

minimum

establishes

the

of

adminis¬

requirements in terms ap¬
plicable
to
all
administrative
agencies of the Federal Govern¬
ment.

~

Broad

general

laid down with

a

;

principles

are

sufficient degree

of definiteness to protect the pub¬
lic

in

its

dealings

with

Govern¬

ment.

;
;

Recognition has
the

fact

that

not

of Governmental

given to
function
agencies can be
been

every

is

,

sensible

under

like

a

And

harvest.

touch

is

to-win,

of

the

in

of comfort and

this

Depart¬

the

land

a

privilege. It

psychological

tasteful to

which is

us

attitude
dis¬

basic fac¬

a

in the whole story

tor

of the ills

that hamper the progress of recon¬
version and keep us up to now
from

enjoying the fruits of the
greatest military victory of all
time.
Perhaps if you trace this
poison of contempt for the law
you will find its source, partly at
least,, in the old prohibition law
which made disrespect for all law
axiomatic.

Today slight and seemingly in¬
and

nocent

occasional

pay-off

a

think.

Of

more

course

violations

serious than
the solid citi¬

today does not have to vio¬

late the prohibition law. But
habit to violate law and to

squares

citizen

ra¬

violation, so that it
with
one's
conscience,
The solid

finds

that
judicious,—or
clever,—expenditure of

shall I say
money,
and

the

the

seems-to have survived.

—

here

above

and

the

there,

standard

—

over

of

cus¬

tomary trade,—brings him special
consideration.
In

:

the days of shortages,

meats

and

cigarettes and possibly Nylon
stockings, came by this route. To¬
day to avoid delays in personal
services, tips are given for apart¬
ments, for clothing, for even re¬
pairs to automobiles and shoes.
Sometimes

large
Thus
a

they

these
are

"tips" are so
"bonuses."

called

setting the stage for
really tremendous drama of con¬
we

are

flict which eats

of the
you

right to the heart

reconversion problem.

For

study the facts what is it




•

on

the

own

one

hand

•Government is striving against

greater

no

catastrophe than

occur

in any

I

tell you

can

ceiling

r.

is

L

ter

will

be

given,

no

quar¬

because

these

violations

are

destroying the

very

breath of

our

economic life.

And

wherever
will be

force

violations

a

70%

for

72%

for

the

is

citizen

it

that

pend for
sion

the

success

nation

must

in this

reconver¬

terested

the

law

the

of

a

that

so

a

Now

what

which I

and

juvenile

/

A

on

of

be

it

spread

disrespect

the*

for

is

har-

of

us—I

the toils of the

reality—let

where

story.
in

is

our

the

an

the

itself.

it
of

may.

the

This hits

us

the
This

nation's

where

blame
the

we

live,

our homes. • It is
the American family

on

And

I

can

tell

you,

it has

purpose

mere

its

is

into

j ing commentary that in
claims

Alcoa's

been

spite of

remarkable

to

and

record

for

first

a

substantial'reduction' in

monopoly up to the hour that the
Government,
imperilled by the

com¬

to

in

stepped

war,

expand pro¬
!'

duction.

|

With Government-injected com¬
petition the price of aluminum
was reduced.
It is this competi¬

sympathetic
avoiding the stigma

when that is

no

the price of aluminum since 1911.
And we hold that Alcoa had a

;

practical

a

every

of¬

tion which we are

possible and

lish

in

aluminum

trying to estab¬
for good., The

and
the
intelligent result, we believe will give the
In any event" the Nation lower
prices for aluminum
being alerted to the situ¬ products, wider distribution, and
and
the campaign against a healthier
industry.
to follow.

is

now

in

full

I

that is, and

epecially

men

to

be

the

in

the

restrictive

nopoly, for it is one of our con¬
tentions that the Pullman Com¬

like

has critically failed to meet
sleeping car needs with anything
like adequate replacements
and
new construction. No heavy-weight
standard Pullman cars have been
pany

picture is not all black.
found

against the
have shown
influence of mo¬

In the antitrust suit

Pullman Company we

the average citi¬

returning

yet-^-it is directly our fault in not
being wise enough or interested

crime

cities, in

attack

a

to perform, and one of the
by-products of the incalculable
agony of the last war is that they
who fought it for us have come
out of it stronger and tougher in
their
conception of citizenship.
However, if they turn out wrong
—and they have not done so as

law.

is

seem

acles

com¬

them, and none of us
is free from contributing to the
delinquency of those who have
Here

machinery of post¬

1931. The small

built since Feb. 2,

,

in

plicity in

fallen into

to

| number of light-weight cars that
of our stewardship. In my judg¬
were built in that period failed
ment there is not a man or a wo¬
ev6n to begin to meet the needs
man who has served in our armed
of the national sleeping car prob¬
forces in the late war who po¬ lem. And
along similar lines the
tentially is not a better citizen be¬ paralyzing hand of monopoly and
cause
of
the
experience.
God the tendency to monopoly has
works in wondrous ways. His mir¬

repeat—

is free from

is

veteran in whom we have the test

wide¬

imaginations may be star¬
by the figures which follow.
they have been carefully gath¬
ered, and then checked and reNone

plan

reaches

But the

Your

of us,

have

And the silver lining in this cloud

tled

one

the

course,

business.and put the process
of reconversion in high gear. Thd

in positions of leadership, take
hold .and give us your support.

But

not

of

purpose,

war

Department of Jus¬
operating to attack

unless all of us,

America.

checked.

a

lubricate

not

But again, as in the case
of the black market, nine-tenths
of the effort can be discounted,

of

law

The

swing.

Investigation,

were—of

I

the job. American
its elders take the
It has
seen
the

juvenile : crime

prepared/for me by my famous
assistant, j. Edgar Hoover, of the

as

Its

court

ation

of the

which show the pay-off—the

we

adopt

practicable

zen

.vest,

ti-trust laws.

to

youth by being

a

you

of

now

and

fender

in the

Bureau

in de¬

//7 '"'(r'-'v 'manufacturing efficiency there has

but firm

wake of

Federal

man

no

ade¬

national scale which has

ican

disrespect for th<b law?
Well, I have some figures here,

comes

robbery;
for auto

munity in the country. Its policy
is to save the reputation of Amer¬

;

speak that

know

many

termining his status under the anf

powerful and concerted effort

a

one

For

harvest

the American business

all

cure

seen

offenders

nation is

the

on

center in the

^

is

have

We

will

■

alone;

have

son.;,.;,'

de¬

still

'/77/7

list of childish pranks by compari¬

course

end

trouble

way.

that the

will

not

prune

is to give the free enters
prjse every break. It is in this
spirit that the Department of Jus¬
"smart" and the "clever" amongst
tice, in enforcing the Sherman law
us, get those things which were
against what it believes to be
scarce by violating the law.
And monopolies, is seeking to establish
youth has followed suit and piled competition in the aluminum in'
up such a catalogue of crime as
dustry, — and,
I
believe, - with
makes
all
previous records for eventual success. It is aninteresteasiest

be made

dollar

You do

you

1939.

furnish

to

We

been
youth has

Growth of Law Violations

:

enough

leadership.
the

can

full doHar when the

for

55%

quate

land

road is reached.

39%

taken

pot

it is upon the respect—the deep
respect—of the man.in the street
road to reconversion

street.

/;(vThe Anti-Trust Laws /;•//,

:

.

bad example, or have not been in¬

average

fight against inflation.

for

It is my policy not
punitive attitude where
punitive attitude is called for.
Rather I invite you to come to the
"not guilty" to some share in this Department of Justice with your
tragic picture told in the hard sta¬ anti-trust problems and we shall
tistics of the nation's crime.'
show you where you stand in dan¬
That's the harvest of disrespect ger of making the wrong turning.
for the law.
And no one, I say, The Department of Just.ee is not
who has heard these figures can going to solve your legal problems
disdain a responsibility of some for
you, because that's your law^
sort for them.
/
/;•••-/•/'.' '>,/( yer's job, but where it can it will
We have contributed, all of us, ; show him the red or the green,
in the older generation, to this de¬ light with respect to your busi*
linquency. We have either set a ness operations.

Federal
But in the last

upon

arm.

analysis

shall

that

that production
ills. We in Wash¬
ington know the state of honest
uncertainty that sometimes assails

18

under

assault;

is

prosecuting

the

on

always win when

con¬

our

since

198%

of boys

rape;

evil.

the

is

in

thefts; and 101% for drunkenness.
No one of us can honestly plead

this

of

there is

as

increased 48% for homicide

tice

fury

thieves 'youth

especially sensitive.

increased

there

and

we

reasons

where girls of tender

are

crack-down with all the

occur

the

plays in the moulding of the mind
of young America in the class-'
room, and the almost equally vital
role the neighborhood policeman
plays
in
influencing
American'

And that

Well, consider these figures: 7
The arrests of girls under 18
Arrests

The

textiles in New York and

car

concerned

are

have

a run¬

Department of Justice is
fighting the black market in

word

a

course

sciences

'

now

of all

of

one

delinquency

.

Of

extinct vol¬
; -..■ijv"

no

"fA-.:-.:

62%

ugly

as

years

part of the land. And
right here and now

prices,
;

21

thieves; 26% of all the

of all, rapists.

30%

badly;,

public servants. And I know I dor
not have to pause here to tell
you •
the vital role the school-teacher !

*

the

that the evil of the black market,
the evil of sly overpayment on

cano.

more

under

so

the
budget too close, for the money
English language.
;
;
:
■
'you save in the class room you
More boys and girls aged 17 are
spend 20 times over in your penal
arrested than any other age group. institutions.
is

Attorney General is a kind
periscope that unfailingly sees
violations of the law when they

fall

That here

be

can

and

inflation. The problem seems

away

safe

of

his

by undermining the na¬
strength.. Domes¬

there

economic

for

have

of

economic

arithmetic

their functions.

t

i,

the

arsonists;

of

.*/
abroad

given

or

cumulative effect of the largo and

,

'

,,

overseas,

even

classification

the

of all

not sound

ourselves,—that some
of us are "smart" enough to ob¬
tain scarce articles or services, by
extra-legal means. But disrespect
for;any law on the part of all
classes, especially those who can
afford special privileges,- has its

petty, but in the aggregate, disas¬
trous violations of which I speak?.
Simply this:

far

contempt for

may

serious matter;—-as we,talk

varied.for an over-gerteralized ap¬
proach.
;
Accordingly, appropriate excep¬
tions
have been
made, not of
agencies as such, but of certain of

are

of

it

here among

that is happening and what is the

functions

of

It comes

regulation.

head

the

law.

too

Their

7

,1

the head

under

comes

the

to

; \

unwillingness to abide by normal

the

memories

your

these

have

we

the,
school teacher and the policeman)
are the most
underpaid of all our

21 years
all the
the rob¬

of the

current

of contempt for a law that is

as

regulated uniformly.

that

of

hold in

instant

that

juvenile

years of age—I said under
of -age—we find 15% of

to have been licked. But the office

,

our

proce¬

dural

phases

attitude

tionalize

Bill

ran-Summers

law

,

law when law interferes with

zen
on

:

for

which

work

merry-go-

contempt

we

hard

ap¬

Justice, Attorney General

There

a

able to all interests concerned.

has thus been carried

the

production.

said:

cynical

final draft of the McCarran-Summers

other

sense

•/•

/,

■

be

can

Contempt-for-Law Attitude

we," in the Government, have
same

1

'

ling the great victory this helped

law,

1933,

fair

off

round and into

problems

it

-

.

produc¬

///"'(y//7 /((.((■ 7 77/77-- (C-

ment of

think

also worked hard in the

;

plied."''

field.
I

irresistible

is

racketeer.

blood, by the pint, again and again
to the Red Cross, is now imperil¬

free play,

a

demand

and

has
steadily sought to have Congress
enact regulatory legislation in this
And

patronize

refuse to

we

it.

and

In

larcenies

more

as

examine into causes

we

find

burglaries.

more

now

an

robberies.

■■7/V.V''
" murderers; 36% of all
bers; 51% of all the burglars; 34%
market can (survive

black

hour if

damper on our

a

try to set¬
we have

points when
the forces of

tion and competition

;

com¬

a

into production the 7; It is one of the arresting ironies
present problems of wages and of our time that the very man
prices will tend to settle them¬ who may have sent his son to die
selves./'

And

The solution rests

us.

get

we

;

and 26%

more

11%

were

patriotic eager¬
ness for all of us, to check infla¬
tion, and keep our money values

tically

guar¬

of

38%

were

There

our

cooperative,

tion's

needful

economic life, to
to our future, rests

if

There

■

scene

mismanaged some of the other
phases of it. For it is not unlikely

theits.

appalling facts:

a

supply

every

hour,

ican

auto

more

cheerful aspect of the Amer¬

now

murders.

more

38%

were

for

ment,

with

while

There

32%

were

simply in obedience to the law, in

and before the inexorable laws of

time,

There

Its continued success, so

savings,

our

working

implements of govern¬
surrounded, at the same

unwieldy

complete, certainly been phe¬

important to

had during the war,

we

to get the wagon

most

this

to

money-lure

We heed the sort of three-horse
hitch that

has

nomenal.

one

The time has

its

Many members of the Bar have

the

to

Business in this day of our de¬

Opposition to Growth of Adminis¬

adopt

of

taken

Management

and

velopment has far

of

be

to

not

this

with

problem

Cooperate With Government

provides. /:

vigorously

by

"prejudicial error."

Labor is

the manifold adminis¬

are

accordance

"unsupported

or

the rule of

President of the United States.

trative

law,"

in

not

substantial evidence."

to a

recourse

local board of appeal

ceptional

otherwise

or

in

-f/

■

aside

set

findings unless they are
found to be "arbitrary, capricious,

Board hears and decides such com¬

Should

,

to

not

are

agency

•

plaints.

paramount

Courts

grant of rule¬

In addition to the

making

public interest
appropriately recognized.
.

The

abiding of all of us—and that is
one'of the most
comforting reflec¬
tions of our time. I, for
one, hope
that we do nothing to muddle
this

most

success

3135)

(Continued from page

Thursday, December 27, 1945

the most vociferous

biggest,

for

FINANCIAL CHRONICLE

THE COMMERCIAL 8c

3164

..

,

helped to give
our

railroads

had
War

I

War

II.

I'll
own

let

rather

the

story:

On

so

us a
that

freight

more

Dec.

situation.on
we

actually

in World

cars

in

than

tell

statistics

World

their

;

31/1916, this country

had

2,329,475 freight cars.
*
On Dec. 31, 1944,. this country
had 1,797,012 freight cars.
,

enough in taking care of them. . ~
This means that while we.were
Our
figures up to now show
the veteran is the most law confronted with a global war we

that

;

[Volume 162

commercial bank
that mucn
more
freshly created dollars of
purchasing power turned loose in
the markets, and is definitely in¬

lessness about doing a good day's
work.
No one worries about los¬

flationary.

away,

by expansion of
credit.

Says Deflation Feai Far-Fetched
Letter" of the Na¬

(In the December issue of the "Monthly Bank
tional City Bank, the publication takes
labor leaders and President Truman that

issue with the argument of

general use in the wage rate
deflation and a decline in general pur¬

level is essential to avoid a

2.

power

trend and inadequate

the 40week, with consequent elim¬

compensate for. return to
Aour

overtime

ination/of

"wartime

is maintained at the
peak, despite lessened

hours

work, labor will

home

pay

of

government quarters.

his

30,

of over $20 billion
in annual wage and salary pay¬
checked,

less

in private industry, which
said "is not going to do^any-

ments
he

body

the President is stressing

agriculture, or the general pub¬
lic." "It is," he declared, "a sure
road

"Wage increases," he continued,
therefore
imperative — to
cushion the shock to our workers,
to
sustain adequate purchasing

"are

,

and to raise the

power

income."

•

similar vein was

In

national

*

the state¬

by Reconversion Director
John W. Snyder in a public ad¬
ment

October
citing that
cut in the work week
has been from 48 to 40 hours the
reduction in ; take-home pay is
in

dress

"where the

23%,"
wide

and concluding that "this
reduction of pay can mean
'

1

.

532,463 less freight cars than
that preceded
more than a quarter century be¬
had in the war

we

it

fore..

;.

strangles

retrogression
defense

tional

production

arrested

This

the

in time of

and

nile delinquency

emer¬

reconversion

is

in the
juve¬

problem is cen¬

legitimate business and we are
fighting it there.. It is in the ten7
dency to monopoly and we are
striking at that evil through the
enforcement of the laws against
it enacted by the Congress.
Our

the machinery of the
law and it has the means of en¬
forcement, and our people, I be¬
country has

have the will to see this
post war period through as they
saw
the war itself through to
lieve,

victory!

in my own estima¬

General it will be
fulfilled my role as
the people's lawyer which in my
judgment is the highest praise
as

why, if our problem is de¬
flation, did the President, in his
And

Sept. 6 message to Congress, warn
as he did (and we think wise¬

us

Attorney

because I have

to me. That means
that the Department of Justice is
cooperative, with a set of affirma¬
tive and helpful principles, eager
to
assist business enterprise in
America channel itself through
legitimate

paths

to

prosperity.

that the acts of Con¬
will be enforced for the pro¬
tection of the public.
It means
that to the limit of my capacity

That means
gress

a

of
on
ous

officer this adminis¬

cabinet

tration will

weight
authority to bear,

bring the full

Government
the side of a Lawfully prosper¬
nation..,"




outburst

inflationary

the

World
War I?
(he said) keep

m

of the period

mind the experience

immediately after the First World
War. After a lull of a few months

the Armistice

following

of

1918,

scrambling

prices turned upward,

of the
history,

We found ourselves in one

in

inflations

our

culminating in the crash of 1920."
And

why, again, did Mr. Sny¬

der, who has been quoted Ibove
as
forecasting purchasing power
deficiencies and deflation if la¬
bor

take-home

decline,

to

say

is

pay

permitted

to Congress in urg-

jng
continuance of price ^control
legislation beyond June 30 next
1 as.there
A T are
on more*
that "as Jong
,

dollars than goods
Government

the

in circulation,
must

hold

the

again inflation"?
Why did
Chester Bowles, the OPA direc¬

line

on the same bill,
that such continuing price

testifying

tor,

assert

because
"there's more hot money around
than most of us dreamed there

control

would

was

necessary

/■•.;>v

be"?

With such

/■

conflicting statements

government officials on the
buying power,
it is small wonder if the public
becomes confused.
;>
•

from

matter of available

,

that can come

as

of

soon;

tered, and we are fighting it there.
It is in the strangle-hold that the
black market is trying to get on

If I succeed

credit and purchas¬

ing power and thus exert a coun¬
ter-deflationary influence?

worst

for

war

along all these fronts. It is
American home where the

tion

for spending? Why are we
endeavoring to keep the bonds out
of
the
banks
whose purchases
money

ly)

In

view, the answer to the

our

question, is there any impending
shortage of buying power? is—no,
for three principal reasons:
1.

The

Federal

Government is

still

spending far in excess of in¬
come, and is expected to show a
deficit of some $30 billion this
fiscal year.
Despite the exclusion
of

the

commercial

banks

1

hotels.

the

them in

from

subscription to the war loans for
their own account (except in lim¬
ited amou nts for saving deposits),
a very substantial part .of. the def¬
icit is being financed indirectly

this great

oughtto , be
taken
into
account in
talking
about
future
purchasing power
and figuring the possibilities for
inflation or deflation.
y;
f <.
the

to

i

foregoing

points there is still another
and more fundamental reason for
three

not

taking

a

calamitous view of

in money income pay¬

fall

some

We

in

real

credit.

and

they

the signs of

see

We

estate.

see

the stock

market, where

risen

to the highest

prices have

reserves

addition

them.

levels in eight years. And
be
it noted,
is without

people will be .willing to invade
huge pile of past savings is
a
matter for conjecture, but cer¬

S In

people to

goods they want when

inflation

of

ceilings,

price

costly subterfuges to get

(or
government, bonds and
bank deposits,
To what extent

them in the diffi¬

see

holding

resort to

marketable

tainly the existence of

see

see

in the readiness of

liquid resources, made

securities,

hoard

We

in

culty
and

want

currency.

are

We

them in the
amount of travel, in the conges¬
tion of the railroads and of the
We

moving.

this

na-,Jn^dry.stmtel,
arid,
got completely out
of prices
hand.

gency.

Our

and

hand.

every

on

enormous

readily

of

other

power and deflation why are we
trying to sell bonds to the people
who could otherwise keep their

would expand

;

cashable)

purchasing

little

too

be

^

had

up

upon

to

of

billion

tions to mop up

is

the

reach

reali¬

Actually, signs of inflation

present

the war and now
total of $140

bounds during

"purchasing power"

to

them in the volume of retail trade

past * savings which have
accumulating by leaps and

been

only
pur¬

zation does not seem to sink in.

People, in addition to spend¬

their

individual subscrip¬
"excess purchas¬
ing power" and, as Secretary Vin¬
son
said,
give
inflation
"the
knockout punch." If our trouble
phasis

that the workers that
followed
"We must

only ohe thing,

the de¬

sense

something to

fortunate position the

more

savings and devoting -a
normal proportion of cur¬

spending.

is

The people of Europe are getting
fearful lesson in this, but in our

ing more and saving less of their
current income, may also dig into

and salary income and call¬
ing for wage-increases as an off¬
set, the Treasury is launched upon
the Victory Loan drive, with em¬

that
to be a drop in take-home pay,
the nation, he said, cannot afford
to ' have
that drop too drastic.
Conceding

on

a

there

power ex¬

a

of

3.

talking

wage

-unemployment."
there will have

wide

to

matter

no

Purchasing
meaningful

additions

It would mean cutting
the abnormal wartime

rent income to

flationary effect of an estimated
shrinkage of $20 billion in annual

business,

good—labor,

any

down

in

when

expenditures will

that such

increase. ;

.

are

ists

possibility

the

with

and

even

both sides of the fence. .While

on

standards,

how much money we give people,
until we can get production mov¬

expendi¬

individual

in

decrease

point out, first, that

officials

government

gain in purchasing power

living

or

individuals without corresponding
tures,

considering this question, it

is in order to

real

no

merely set the stage for inflation.

more

In

/,

'/

total of income payments to

rate
,

/

,

all this,
use of

have the money
paying down cash on the
One
needs
but
look

People

are

barrel.

around and

what is

see

going

on

to wonder why people are worry¬

much about deflation and
little about inflation.
r

ing
so

so

incomes to the inflated
war
levels, but rather the rela¬
tion of money incomes to costs,

is

purchasing power, de¬
the circumstances. An

on

that

forced

prices, and profits.

adequate purchasing power, would
anything be gained by jacking up
all around?
This is a very
argument, which keeps crop¬

ping

that", boosting

ing

wages

create

facto,

the

idea

will,

ipso

both because

up

higher

1 purchasing

more

wages

Certainly wage increases do not
more purchasing power if
they squeeze profit margins to the
point where business cannot go
ahead and workers

are

of

is

jobs,

it

And

smaller

Far-Fetched

these

all

Taking

factors

to¬

chasing

power

deflation.

and

other way
have

around—that

more

we

purchasing

shall

power

seeking satisfaction in goods and
services than there are goods and

is, and
time,
a
shortage of the kind of things
people will be wanting to buy.
Meanwhile, the preoccupation ap¬
pears to be all in the direction of
piling up the financial claims
against production rather than
getting production itself going.
services available./ There

will continue to be for some

There

is the

scramble for higher

the scramble for foreign
loans, the pressure for larger un¬
employment relief payments, sub¬
sidies, and deficit spending, all on
the theory that they add to pur¬

—

usually

devices, etc., are introduced.
Certainly wage increases do not
mean
more
purchasing power if
they force prices to a level where
buyers strike and production and

V

trade
for

stalled.

are

of

dividend

A

($0.50)

Cents

the

on

per

capital

will

1946,

to

broadcast

the

on

1946,

the

Company.

paid

cost

./public

•

Ottumawa,

the first of these

on

projects on a
permit them to
Stating that the low¬

would

that

basis

ahead.

go

est bid would

cost

of

have

wages

as

before).

hampered by strikes, slowdowns,
absenteeism,. and general care¬

the final

run

the first

project $810,000
the New York City Housing

above

Authority's estimate of $3,860,000,
extension of such increases on the

scale

same

other projects

the

to

(Continued

3167)

on page

DIVIDEND NOTICES

Share Company

Electric Bond and

$6 and $5 Preferred Stock Dividends
Quarterly
the

share

declared

stocks

of

1945

23,

for

1946.
H.

of

February
at

the

Com¬
as
$30

DINKINS,

-

with a

been

have

;

1946

1,

close
'

H.

the

been. modified

distribution)

record

of

January:. 7,

share on
$0,96 2/3
per

per

Stock

connection

in

payment

stockholders

$1.16
ai}d

having

capital

share

per

dividends

$3 ,/Preferred
Stock
on
tne $5 Preferred

pany
(such
of November

of

-P.

to

the

busniesa

.

Jr.'," Secretary.

for

FROEDTERT

COMPANY, INC.
"Largest Commercial Maltsters
in the World"

DIVIDENDS

UNI

i

£0

REFINING
The

31,

Froedtert Grain and Malting
Company, Inc., today declared
regular quarterly dividends of
twenty-five cents (250) per share
on the Common Capital Stock
of the Company and fifty-five
cents (55*0
per share on the
Preferred Stock of the Com¬

Treas.

SMELTING

STATES

COMPANY

AND MINING

pany,

have declared a quarterly
lH% (87 V? cents per share)

Directors

dividend

of

both payable January 31,

1946, to stockholders of record

January 15, 1946.

the Preferred Capital
Stock payable
January - 15, 19-V5 to stockholders of
at the close of business December
29, 1945. No dividend was declared on the
on

on

ALVI'N B. CORD

record

Stock.

Common

December 20, 1945

*

/
v

>.

/,

"

THE CHASE

Vice

1

'•••'

■"/'

'

FRANCIS

DECLARED

The Board of Directors of

.

,

FTSKE,

■

President

and Treasurer

Milwaukee, Wis.

"Treasurer.

December 18,

NATIONAL BANK OF THE

1945

CITY Or NEW YORK

National Bank of the City of New York has declared
a dividend of 80^ per share qn the 7,400,000 shares of the capital
stock of the Bank, payable 40?f per share Febfuary 1, 1946 to holders
of record at the close of business January 11, 1-946, and 40*i per
v

The Chase

share May 1,

1946 tp holders

April 12, 1946.

of record at the close of business

/

.

will not be

of these payments.

closed in connection with either
•

THE
OF

work-week

take-home
Production is

projects,

housing

Mayor F, H. La Guardia revealed
the city's inability to obtain bids

Fifty
share
stock

Jan.

Morrell, Vice-Pres. &
Iowa.
.
/
/

A.

Geo.

be

time for leisure.

(of course at the same

ef¬

obstructive

spiraling wages, costs, and
prices on the New York City pro¬
gram for construction of 13 low-

stockholders of record Jan
as
shown on the books of

12,

The transfer books

They want a shorter

use,

fects of

of John Morrell & Co.,

At the same time, many people
to think they ought to have
more,

what

building trades to increase pur¬
chasing power if the result is to
halt building?
/
Commenting recently in a radio

DIVIDEND NO. 66

chasing power.

and

Of

example, to raise wages in the

JOHN MORRELL & CO.

seem

more

the

GRAIN

wages,

.

the

feel

pinch most since these are gener¬
ally operating on slenderer mar¬
gins of resources and are less able
to make adjustments.
Wage in-^
creases
may reduce employment
to the
extent that labor-saving

gether, it is difficult to see solid
basis for fears of inadequate pur¬
Rather the danger seems just the

thrown out

usually

that

concerns

and MALTING

To the extent

of Deflation

Fears

re¬

m,ean

DIVIDEND NOTICES

various elements that

promotes production and distribu¬
tion, the question of purchasing
power takes care of itself.
.//

without

easily persuaded

themselves—are

achieve a relationship be¬

we

tween these

re¬

productivity,

granted

or

of money

that

in

about

comes

other matter.

wages

power is superficially plausible,
and because .the groups advocat¬

not

an

gard to productivity is quite an¬

assuming for the sake of
problem is in¬

only by overtime wage pay¬
ments but also by* employment of
more than the normal labor force.
Such conditions afford no sound
criterion for more normal condi¬
tions.
The thing that will count
from now on is not the relation

the

that

course,

discussion that our

old

that

of

raising costs and prices,
thing. But an increase that

one

Wages and Purchasing Power

bei borne in
reduction that is
talked of would be from, a highly
inflated wartime level — inflated
mind

should

It

ments.^

is

■!

But

is,

flection of increased

The truth is that there can be

:

chase. Under any other condition,

of Purchasing

Power?

.

been accustomed.

by the same token, there is- room
for a considerable decrease in the

power
and
stimulating
production and employment?
Is There a Shortage

without

Industries are crying for
while workers "rest up"
go fishing, or
lo'ok around
choosily for jobs that will pay the
war
wages to
which they have
on.

ing ahead.

sum

fact

more

increase

are

bridged and the
war
financed without a terrific
inflation of prices. Now, however,

chasing

this argument been

wage-price speech on
President Truman re¬
ferred to an estimated drop, un:
Oct.

pro¬

Is it true that we face a
problem of too little purchasing
power in the hands of the public?
And if true, would the proposed
increase in wages be an effective
method of sustaining general pur¬

;• W*'/;/'y

highest

Thus in

the

mean

and

and services was

gram.

repeated again and again by la¬
bor leaders and labor economists,
but it has received strong support
in

recovery

whole

the economy at large
and
prevent the expansion of
peacetime employment and pro¬
duction
so
ardently desired by
Not only has

may

wreck

effect upon

everyone.

that

judgments

The

increase in wages may or may not

labor,

and the supply of goods

incomes

cannot afford to risk ill-

we

tucked

back

normal rate of

this rise in the

people have

resources

for the gen¬

are

good.

pending

saving that the "inflationary gap"
between the total of disposable

in business

factor

wage

considered

purchasing power
have a deflationary

will

which

suffer

costs

in

decline

a

the

of

to

Because of the importance

cally.

eral

and in
the
background
usually liberal • unem¬
ployment relief allowances to fall
there

to buy were not
It Was, indeed, thanks

available.

financial

some

wanted

they

pur¬

that the increases

job, for there is always an¬

a

other to be had, most

undoubtedly

will

People

.

ing

during the war.
While
the war was on people saved, both
because, of
patriotic4 incentives
arid because many of the things

defla¬
examined criti¬

tion" ought to be

unless

that

"sustain

to

now

means

they did

chasing power"-and "avert

central point is the
labor's take-

mium rates, a
claim

at pre¬

pay

needed

are

/This

spend a larger proportion of their
currently -received income than

and maintains that the fear of a post-war deflationary
purchasing power "is far fetched," In a discus¬
sion of the topic, tne National f—
—
—:—
City circular states:
v.</would have to reduce their standIn the discussion of union deard of living,
This theory that wage increases
mands for 30% wage, increases to
chasing

3165

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4450

CHASE NATIONAL
THE

CITY

OF

BANK

NEW YORK

W. H. Moorhead
T

.

1

Vice President and Cashier

Thursday, (December 2 7;': 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &
3166

LCilendar

FILlNaS
Lbt
of
issoes
whose registration
statements were filed less than twenty
days ago, grouped according to datea
on
which registration statements will,
in norma! course

is offered
by the company to the holders of its com¬
mon stock at a price to be filed by amend¬
ment at the rate of one share of preferred
for
each 26
shares of common held of
Offering—The preferred stock

effective, un¬
discretion sf the

become

accelerated at the

less

SEC.

record

GAS CO.

at

'

ment.

./77V/?/

the underwriting

group.

including

CO.

BOLT

BUFFALO

BERYLACA

reg^ra"

EShS
^ItettllSsee

■

common

Issue

ELECTRONIC
Dec.

'°authorized
na?£'°v

subscription.
■
Underwriters—None named.

public

^

v

MONDAY, DEC. 31
BISCUIT CO. on Dec
registration statement for- 80,750
common stock. par SI.

CONSOLIDATED
Hied

12

a

of

shares

ItoXVm

com^u

of

stocltholders

?aUo VoT^ar'e

be olfered

reeord^some

each tour shares

lor

mentioned.

,

' ••.."* '

a

12 filed

Dec.

on

a

shares of common sto

for 129,966

ment

AMER¬
registration state¬

CANTEEN CO. OF

rrroMATIC

ICA

,

20.

issue of Dec.

chased from

will be men uy

Offering—Price to public

^"underwriters—Homblower

& Weeks and
Inc.

Republic Corp.,

Central

it

is

producer.
1.'Ay. / '• V7
Offering—The
shares
are
being

largest

p

Details—See

cellu¬

extruded

which

of

casings,

sausage

block,

chased

from

Price

Co.

54,000
E.

received

be

to

cuBD^A12
350,000

f^°%^?tlJre?errSltesIto?k
of

shares

preierreu

par). The dividend rate will
amendment.
•
issue of Dec. 20.

u>00

and price to the public will be filed
amendment. Company's capitalization,
consists of 540,000 shares of class A, $5

bv
'

be filed

par

and

Details—See

ff

rt

stock will be
lor sale
at competitive bidding and the
offering price filed by amendment.
Underwriters—The names will be filed
Offering—The new

Lehman

amendment.;-,

'

Brothers.

dividend

rate

will

stock ($1 par).

mon

issue

stock

holders

to be offered first to

are

(no part. The
amendment.
Washington Avenue, -St.
*

Mo.
shoes.

dren's

(

chil¬

7

>

.

.

and

men's

...

Offering—The price to the public will be

Offering—The
fprri^d

a

be filed by

Business—Women's,

_

of Dec. 20.
100,000 sharesofpretne
of the company's cutstanding com-

Details—See

Louis,

filed

amendment.

by

Proceeds—The

of common,

shares

Details—See

entered

company

Ltd.

$1.25

Price

holders.

Canadian
will

Should

the

option

not

Toronto Mines Finance,

the

and

of

'•'

000,000 of the net proceeds to> the prepay¬
ment of its term bank loan evidenced by

preferred is convertible at
into lVSrshares,of commomstocK
Underwriters-Burr & Co., Inc., 57 Wil¬

April 1, 1955, in the amount of $3,000,009.
The balance of the net proceeds will be

shares are reserved for

The

ferred.

any time

liam Street, New

York 5, N. Y.

2V*%

a

added

the

to

maturing

note,

promissory

of the

funds

general

on

com¬

In view of anticipated demands- for
products and the outlook for its busi¬
ness • generally,
the company intends to
pany.

TUESDAY, JAN 1
13

Dec.

filed

a

shares

162,500

for

& TERMINAL CO.
registration statement
of
common
stock

RAILWAY

DALLAS
on

its

'

(par $20).
,
Details—See issue of Dec.
^

eii\

_

20.

Offering —The
shares
«e
Pr™
by Electric
Power & 1Light Co
parent of Dallas, and proceeds from, the
sale will be received by Electric
owned

opening

factories,

of

construction.
Underwriters—Goldman,
Sachs &
CO.,
and
Lehman
Brothers head
the under¬

now

under

are

writing group.
••>•••'• ••
Registration Statement No. 2-6053. Form
A-2.

affiliate

of

•

filed

14

217 384

a

whose

RUBBER CO. on
registration statement for

ASBESTO

&

stock

shares of1 common

present below a list of Issues
registration statements were filed

We

WEDNESDAY, JAN. 2
union

UNDETERMINED

;'77

(par

)•

twenty days or more ago, but. whose
offering dates have not been deter¬
mined

or

are

unknown to us.

'

Offering—The price to the public

will be

the

_

will

underwriting

group.

statement for

14filed a reg¬

120,000

sk®**?' °*

Emulative

preferred- stock
The dividend
rate will be filed by amendment.
Details—See issue of Dec. 20.
Offering—The

otter

company

J,he

preferred stock to the holders o
stock oni a pro rata basis uponterms
and at a price to be filed by amendment,
on
the basis of so many shares of pre¬
ferred for each 100 shares of common held.
The underwriters have agreed to purchase
such shares of preferred as are not sub¬

3

filed

TRAD¬
registration

a.

statement for 400,000 shares of 4%
Details—See

cumul¬

deem
fund

Offering—The

of

price

Oct.

for

by

the

common

stockholders,

together with the balance of the authorized
120,000 shares which are not offered to
stockholders,
The
public
offering price
will

be

filed

by i amendment.
Ripley

Underwriters—Harriman
Inc.

and

Fenner

to

public

the
will

shares

be

CABOT

Co.,

YELLOWKNIFE

GOLD

and

MINES,

ment for

1,000,000 shares of common stock,
issue

of Nov.

Offering—The price
•ents per share.
Underwriters—John
named

public Is 30

William

Langs

Is

principal underwriter.

a

REFINING

CO.

on

Dec.

14

registration statement for $25,000,-

issued. 7 7':"

of La Consolidada, S. A., a
corporation, on Nov. 28 filed a
registration statement for 166,667 Ameri¬
name

preferred shares and 614,667 American
common
shares.
The
underlying
sharer




166,667 shares of 6%

Nordman

St.

Co.,

•■;,;7i-yyy;'. ,;'77/7/*771'-'

-

;

and

a>

shares

on

registration: statement for

cumulative

of

con¬

share.
r

.

;

cash

The

payment.

to

price

the

/<

'

■

.

will be offered

Underwriters—The bonds
for

sale

at

ment.

^,7 '.*1
26

Nov.

on

A.-7, ;

7

j

and

the

filed

v

7'"/

INVESTMENT CORP.
registration statement

STREET

STATE;

;

bidding

competitive

the underwriters filed by amend¬

for; 123,411

\

CORP.

a,

Offering—The price to the public will be
by amendment,

filed

names of

Pieree,
Peabody &

SERVICE

filed

28

Nov.

on

issue of Dec. 6.

Details—See

statement
will re¬

1945,

Kidder, -

CO.

GAS

SEATTLE

public; is $103, per share.
'1
>
/ 7 >
Underwriters-tClement 'Mi Evans & Co.,
Inc.,. Atlanta, Ga. .heads the group. ;
'».«
ir.
.

a

(additional) of no par

shares

stock,/and stock purchase war¬

entitling the bearerd to subscribe in

rants

the; aggregate to said
common^stock, to be

123,411 shares of
given to- issuer's

stockholders of-record at the close of busi¬

15, 1945. In addition 34,113
shades already issued, on Aug. 22, 1944, to
registered to permit the re-sale thereof

ness

Dec.

on

be

and

when

reacquired by

as

issuer//--'-

Details—See issue ot Nov.

.

7-

29.

Offering — Initial offering of 123,411
shares expected* to be made on »r about
..

Dec.L 24,, 1945, through; the issuance of
stock purchase warrants "to stockholders.
.

Underwriters—None.,

-

7

.

^

,

Dec.5 7

be filed

be

headed'by

underwriting

Hayden,

and Halsey, Stuart & Co.,

7;

group,

Stone. &

Co.,

Inc.7/7 v /;:.//.
CORP.

BATTERY

CADMIUM

NICKEL

registration statement
for 35,000 shares of capital stock, par $10.
on

Nov.

filed

23

a

Details—See* issue

of Nov.

29./

.

'

,r.

CORP.

CONDITIONING

AIR

tiled

21

Nov.

statement' for

500,000

registration

a

of

Shares

common

stock, par 10 cents, of which. 150.000 shares
be offered through an underwriter.

7.

Details—See issue of Nov, 29.

Offering—The price to the publie is $4.50

Application has been made by
the-corporation to list on the New York

per' share.

Curb Exchange 350,000
mon

stock

which

is

shares of, its com¬

and

presently^ Issued

outstanding and application has been -made
to "-list/on
the
Curb; 150.000 additional
to be sold under, this* prospectus.
Underwriter — Qeorge;..F,, Breen,/New

shares
/

York,

ThS securities are

Underwriters—None.

0%

STATES

are( to

.

Offering—The price to the public is $10
per share.
.
-

,

UNITED

by amendment.

Underwriters—The

.

will

'

.;. >

CO^,

John

and

Mo.>v7 7,

registration statement for $4,800,000 first
bonds due Jan. 1, 1976. The in¬
terest rate will be filed by amendment.

,

:

named.

public is given
7.;-7'"7/,
777
Cunningham, Inc.,

K.

mortgage

Merrill -f Lynch;

LINEN

filed

16

plus; a

v-.v..;-..; y. >
At?

filed

SERVICE

on

is

7

named underwriter.

($4 par).-7
being sold-

PRODUCTS

STEEL.

CO.

on

registration- statement for

a

sinking fund de¬
purchase com¬

12-year

with

warrants? to

of

(par

$1), reserved for exercise of common
purchase warrants. .

and

40.000

shares

V

common

7

of

its

6%
have
been
called
for
redemption on; Dec., 29,
1945, ^the opportunity to exchange
the
preferred at the redemption price of $22
per share,
for debentures, with warrants,
at par, with cash adjustments for accrued
dividend on preferred and- accrued interest
the

with
at

a

not

outstanding

preferred

debentures.

offering

shares

stock,

The

of

which,

underwriters

$340;000

of

are

debentures,

warrants, for cash sale to the public
price to be filed by amendment but
less

than

102 Vs.

7

.

& Co.,

Inc.. St. Paul.

cumulative

13

filed

Aug.

Details—See

issue

of

-

CREDIT

CORP.

VIRGINIA

29..

Nov.

/Offering—The price to the public

will be

or

LAKE

MINES,

LTD.

per

share.

underwriter

Charlottesville, Va
The underwriter has pgreed to
purchase
from; the company 5,000- shares of common
6,OOo shares of preferred and $500,000 oi
4%
first
mortgage bonds, and has alsr
entered into an agreement to; purchase 58/
000 shares of common from Victor Product
F.

C.

Cassell

&

THE PANTASOTE

on Nov.

CO:

statement
stock,

for

9* filed a

100,000

shares

par

by certain, stockholders.
Offering—The

'
to

beads

the

filed

the

E.

a

stock, $1 par,
md
40,000 common- stock purchase war-mts and
40,000 shares of common re¬

PARKS

GRAPE

JUICE

public

is

Noel & Co.,

Alstyne,

par

tor

$1.

.

,

•

.

Nov.

on

23

registration statement for 20,392.3
preferred stock, par $100.

shares of second

Details—See

issue

of Nov.

29.

1

•

second

preferred are being offered to the holders
of common stock, at the rate of two shares
of second preferred for each 15 shares of
common held,
at $100 per Share.
Navajo
Corporation has agreed to purchase all of
the' unsubscribed; shares at $100 without
discount or commission.
Navajo states
purchase the unsubscribed shares
investment, and not for distribution to
the public.
will

it

Underwriters—None

group;

SALES

&

SERVICE,

INC., on Nov. 30 filed a registration state¬
ment

CO.

for

underwriting
AIRCRAFT

cent^

& Co.,

Burnside

-,7.

York.

WELCH

55

Canadian -or

funds.

any

22.

of Nov.

price

New

,

Offering—The 20,392.8 shares of

$1.
The shares are
Issued and outstanding and are being sold
common

States

Underwriters—Willis

.

.

registration

United

Co.,

Corp.

of

60(4 "cents

lic? is

•

Underwriters—The principal

mentioned.

a-

and 40,000 shares of common

on

registration, statement for

a

.

$5.75 per share.

registration statement for
10,000 shares 6% preferred stock, $25 par,

RED

Juries 24 filed

220,000 shares of capital stock,
par $1'
The underwriter will
(Canadian). . .
/ v
7
•
purchase the-securities at the following
Details—See
issue
of
Aug.
2.
'
prices: bonds at 95%, preferred stock a(^
Offering-—The offering price to the pub¬
$92 per share and common stock at $4.50
filed by amendment.-"*

Underwriters—Van
MANUFACTURERS
tfov.

on

CO.

OIL

.

Details—See issue

Underwriters—Brailsford & Co., Chicago
Kalman

OSAGE

;

is

Offering—The company is offering to the
convertible

being offered by

;

!

>■/

filed

29

VALLEY

statement .for

registration

a

INC.,

stock,

and

Mexican

consist of

registration
Dec. 114,

vertible preferred stock par $100 per
Details—See issue of Nov. 22.

CONSOLIDATED, INCORPORATED,

English

—

Beane

NATIONAL^
Nov.

to /all
stockholders', - pro
price of $100 per share which
and this offer

PUBLIC

28

initially

22.

to the

&

;30,000

mon

on

$1.

Details—See

can
"

ATLANTIC

not be

bentures

li

sold

LTD., on Nov. 13 filed a registration state¬
par

Louis,

common

v; 4.v\

Underwriters—None

'-/

the

to

'

Pittsburgh,

common

Cot, head the. underwriting group.

expire on Jan. 30, 1946. 1 Any- stock
not subscribed for will be deregistered and
will

19.

of July

Underwriters—S.

5Ce. cumulative; preferred.

its

Underwriters

'

;

t

Details—See issue-of Dec.-6.

through the efforts of the directors
employees of the corporation.

THE

&

Hemphill, Noyes & Co. head the

underwriting group.

filed

a

price

average

100.47.

as

Thetoffering price of the new preferred
will be'filed by amendment;
*r'

wilL

11.

.

mon

scribed

at

holders

S5.50 per share.
Underwriters—The

The

all
its $2,625,000 31«c.'o sinking
debentures, and will call for redemp-

tioir- all

■

is less than net asset value,

stock

non-voting shares.
issue

" the

to

the-company-on

offered:

be

rata,

$1,000,000

ative preferred

CARRIER CORP. on Dec.
istration

wilt

-

Offering—The price to the public of the
different
series ranges from 99 to 102.

exercise of fractional warrants which
remain'valid until December I, 1946.

According

-

on

4V«% equipment trust certifi¬
"/",•■ "7:,,;' / 7',"
•!
'-7/ .■J/./-

Details—See issue

to stfchz shares of. stock, except
the shares,of common reserved for issuance

registered, additional shares in. a- number
as yet
undetermined, but estimated to be
no less than 6,250 and-no more than. 7,500,

y

PALESTINE

AMPAL-AMERICAN
ING- CORP. on Oct.

cates.''

attached

Finance Co.,

CORP.

July

on

registration statement for $500,-

a

serial

as

,7 .NEW YORK DOCK CO. on Dec; 5 filed a
filed a registration statement "for ,14,999registration-' statement for $12,000,000 first
shares of
capital stock, minimum s.tatqd
mortgage 3V2V0 bonds due Dec. 15, 1970.
value of $50 per share. '. ' 7 ' ; "
7, ,'" '1
;'7 Details—See issue of I^»c. 13.7
; Details—See issue of Dec. 207
7 .T"».
Offering—The price t®, the public Will
Offering—Of the' 14,999\ shares being

Oct.

by amendment.
heads
Underwriters—Kuhn, Loeb & Co. neqas

of

COMPANY

TOWING

ROBERTS

000

,ar$.-not --purchased by the holders
preferred stock pursuant
tlie "cdram'ofl! stock purchase warrants

to

/

the un¬

.*•

,

GRAHAM-NEWMAN

underwriter

of 5'V cumulative

.'('is

is fiscal agent,

Principal

—

Order

11 filed

to

•

INDIANA

being sold by certain stockholders.
Details—See issue of Dec. 20.

are

filed

subscribe

which

a

Ga.,

of

Hearings—Stop order hear¬
ings to determine whether the effectiveness
of registration statement should
be sus¬
pended now pending before the SEC.
7

-

outstanding end

The sherware issued end

shares

150,000

shares

Inc., in

exchange
for various obligations of the registrant.

Stop

common stockholders.
The under¬
alio will purchase at $22 per share

ofy-ther

any

530,823

Co.,

13
the corporation ■ >
"
filed a registration- statement for 113,468
•:
•
G'SULLIVAN RUBBER CORP. on Nov. 26 'shares of class A stock (no par)*.. •
Details—See issue of Aug. 16. ^
The shares are issued and are
1 filed
aregistration statement for 63,000
Offering—The price to the pu'eiic Is
shares of common without par value; 6,000
by certain stockholders.
Details—See issue of Dec. 6.
$12,50 per share.
/
,
, '
T
shares
of'75%
cumulative preferred, par
Underwriters—The underwriter is £3ilOffering—The price to the public will
$100and
$500,000
4%
first
mortgage
crekse
Gil Co. of Texas,
165 Broadway,
be filed by amendment.
• (
y'
7
> •
bonds
Of the common stock registered,
New York, N. Y.
Underwriters—To be named by amend¬
/, -y7
v,
58,000 shares are issued- and outstanding
ment;- '
;,7:7
and are being sold by Victor Products Corp.

OF OFFERING

DATES

sold at „nmrw>Htive
competitive

by

of

balance

registered have heretofore been

Issued to Bennett &

preferred to which

for-c a .small

writers"

stockholders.
■>
1.
: *
price to the" public "Will

312,500 shares of common stock

7'

_

rights to

to. waive .their
shares of new

is

Underwriters

of Nov.

$7.50 per share.
-•
Underwriters—General

In

Bennett & Co., Inc., Dallas. Texas.

Offering—The company; is offering to
SECURITIES CORP. on "Sept.
registration statement: for 200,?, holders of its $5; cumulative preferred stock
andi. $7 cumulative
preferred the-; oppor¬
000. shares of common stock, par $5.
tunity to exchange their shares for the
Details—See issue of Oct; 4v
.
Offering—The
price to the public is new/ shares, on a share for share* basis,
filed,

stock of Seatex Oil CJ.,
addition,
150,000 of the shares

stock being

the

GENERAL

28

Nov.

Electric.

Underwriters—Ta be

bidding.,

pre¬

on

number of shares
remaining common stockholders so

for

being sold by certain

GULF

Upon-

Dallas

rate

possible the ratio which will be
by^ amendment.
The
underwriters
have
agreed to purchase any shares of
new
preferred" which are not subscribed

(12-20-45).

consummation of the saie
will cease to be a subsidiary or

Lieht.

Dec.

funds to the
including two which

apply portions of its general

the

of

dividend

The

make

to

The 160,000- shares of com¬
stock is issued and outstanding and

•;

to the registrant
acquisition of 54%

the

with

for all of Federal's stock-.

filed

preferred.

$3,-

apply

The^ common
conversion of pre

the

the

.

shares at $10 a share.

mon

a

upon

be filed by amendment.
Underwriters—Burr & Co. heads

•

shares loaned

of

connection

Inc.-

initially

except

be

to
.

7

,.

registered will be issued to stockholders of
Steel Products Corp. in exchange

would otherwise be entitled to sub¬
scribe will1 be
sold
to
the underwriters,

be
Ltd., the company
as aforesaid.
are

7.

Federal

they

Oct.
statement for 60,000
shares
cumulative
convertible preferred.
$20 par, and 260,000 shares of common,
par
$1.
The dividend rate on the pre¬
ferred will be filed? by
amendment.. The
common registered includes 100,000 shares
reserved for issuance upon conversion of

derwriting group.

4

for 60,000
preferred

offered to holders of its
stock of record Dec. 27. Holders
certa'in number of common shares

be

and

the

shares

a

shares

/.

of the outstanding

convertible

conversion

for

stock.

agreed

to

GENERAL INSTRUMENT CORP. on

issue

Dec.

on

statement

990,793

June

■

(including United Stores Corporation) have

Ltd.,

so

employees..

Details—See

CORP.

number
in

.//-'!"

of

Tiled

May 31

on

for

Offering—Of the shares registered Ben¬
Co., Inc., parent of Red Sank, will
receive 209,970 shares in return for a like

Offering—The 60,000 shares of preferred
will

25 filed a registration

mon

-

t...

CO.

(par $1)..

issue

Details—See

common

offering,

195,000

remaining

The

:

OIL

statement
stock

common

The

acquired
public.
exercised by

Shares not
generally to

com¬

tered.

to Eureka stock¬
expressed in terms oi

is

money.

offered

be

the-

■:.■/

nett &

$100, - and
150,000 shares of
stock, par $1.
In addition 150,000
of" common were registered which

reserved

are

and

share,

per

by

Bennett & Co.,
the sole underwriter as to an ad¬
100,000 shares of common regis¬

4.

Finance,

commitment

firm

a

solely

//.v //"

.■

Inc.,

Frobisher, Ltd., and La
(Canadian companies) at

Ltd.,

Mines,

*■

will

Ott.

of

Mines

;/•/

ditional

purchase
480,000
shares
at
$1.23
per
share, and has
an
option on 1,920,000
shares at the same
price.
The offering
is to be made among the shareholders of

lanta,

~

.

par

$17'■* '

par

issue

into

of

offered

be

to

BANK

registration

"///'/, preferred will be filed by amendment.
; / Details^—See
issue of Dec, 13.'/ ;7',-// '■, V

Offering—Toronto
has

STORES

/' .v
j <.
v; ;. ,7 .
underwriting,— The

.

common

LTD., on Sept. 28 filed
statement
for
2,595,000

registration

,/7,v

/.

».

basis of

of' Parks. Air

• ,■/

-\

offered
;

the

on

share

The' offering price is

„

shares

ferred

J.

and Irving

Co.

7.

Offering—The

stock

preferred

cumulative

Address—1600

of com-

and 150.009 shares

(M par)

stock

7'

shares of

registration statement for 40,000

CO.OnD^iZinfO

Form

filed

has

INU,

CO.

SHOE

&

'/,; :

cumulative

stock,

EUREKA CORP.,
a

the

Becker & Co., Inc.

G.

TUESDAY, " JAN. »;
BROWN

rv«v''.,v

,

„

STERLING. ENGINE

class

of

$5.

par

Registration statement No. 2-6052
S-2 (12-19-45).
;
-.-7

,

by

stock,

shares

54,000

and

common

Common

Underwriters—A.

•

Hirsch

Co.,
Co.

public

to

.'

• *

being

/,/'■'■

RED

state¬

registration

a

registration

a

of

pur¬

selling

the

by

common

cials

group

B

&

,

shares

Corp.,-'Si¬

purchased by the company geologist, offi¬

by

tor

&

Rice

is

College,
for each

stockholders

PRODUCTS,

due Dec.

McCRORY
filed

the

Nemours &

Pont de

du

I.

Scott

share.

a

shares

the

to

each

for

.Underwriters— No

,

stock

for

Chicago.

•' 7-v 7/7*

Colony

$3.27

named principal under-^

filed

4

and

College,"Inc.,

1.75, shares

of Tellier &

name

owned,

College then owned.

by amendment.
; /• 7;:,;,/77-7'/--;:7'
Underwriters—Kebbon, McCormick & Co.,

on

<7 J ■'

of stockholders. The
shares is being pur¬

group

a

largest

0

AMERICA

-

itself -will make

Business—Manufactures
lose

.

Chi¬

Street,

i '

38, Illinois.

the

mons,
Linburn & Co., Childs, Jeffries &
Thorndike, Coburn & Middlebrook, Gruobs,

Luz

has

65th

West

Address—6733
cago

■:7.'

shares common
•

.

Ventures,

7

filed a regis¬
tration
statement
for
150,000 shares of
class A common stock, $5 par. The shares
are
issued and are being sold by certain

.

head

r;"

Details—See issue of Dec. 6.
Offering—Preferred stock $10,
Underwriters—First

group.

CORP.

VISKING

THE

Co.

OF

CORP.

preferred and^ 100,000

Stock' $5.

an

MONDAY, JAN.

,

55

stock $1 par.
./

are

QfTipVhnlHPTQ

^^Underwriters—None

ible

issued

underwriting

the

heads

„..

ne«

to

common,

•

firm

6.

Parks Air

(except

basis of three

a

Parks Air

of

v-

doing

Tellier,

on

,then

one

$1,000,000 4(t>. sihking fund de¬
1, 1960. Price to public
to be offered by amendment.
,,
../ Details—See issue of Dec. 6.7'

registration
statement 7" for
cent cumulative convert¬

filed

3

70,000 shares

.additional 15,000 shares
and delivered by the
company to Lee Industries,
Inc., on Aug.
10, 1945, Buffalo Bolt acquired the assets
subject to liabilities of Eclipse Lawn Mower
Co. from Lee Industries for 15,000 shares
of Buffalo Bolt common.
Lee Industries
distributed to its stockholders the
15,000
shares of Buffalo Bolt common which, at
the then market value of $10 per share,
were
worth $150,000.
Lee Industries was
dissolved on Sept. 17, 1945.
Underwriters—Van Alstyne, Noel & Co.
of

part

a

of

Dec.

on

Offering—Price

offering
43,386 shares at a price to be filed by
amendment.
In
addition there may be
eventually offered under the prospectus all
or

INC.

ment

bentures,

&

IhQ.),

pany.

unless previously-

1950,

/'

:

F.

MARE.MONT AUTOMOTIVE

basis.

share

underwriting group.

registration statement for 58,386 shares of
common stock, par $1.,
Details-—See issue of'Dec. 20.
>7 ,'-; vV,

Offering—The underwriters

31,

Dec.

for

Underwriters—Shields

"

14 filed a

Dec.

on

share

a

)

-

under the

business

price to be filed by amendment.; The
shares are convertible to and

a

of

stock,

stockholders

to

7'

unit, ;a. unit consisting
preferred and one share

Co;, New York, is
writer.;

,

redeemed, into American common stock on

7/"

\

be

share

one

issue of Dec.

Offering—The stock will be offered first

■

-,

22.

per

Underwriters—Walter

shares not- subscribed
purchased by the under¬
offering in the United States

for

;

Details—See

of war¬

exercise

upon

"

$30

of common

any

preferred
will

and

will be

of

common

against

issued

be

lic

preferred

Underwriters—Smith, Barney & Co. head

preferred

will

"77;-:"

Offering—The offering price to the pub¬

/

American, pre-?

basis.

rata

pro

Mexican

of

holders

the
a

shares

writers

The

O^D^IO

Tf-lT'cumulative

dfare *

for

Jan. 8,
agreed to

have

underwriters

The

1946.

to
on

Mexican

of business on

close

the

at

share
stock
ferred

purchase any unsubscribed preferred stock.
public offering prices of the deben¬
tures and preferred will be filed by amend¬

SATURDAY, DEC. 29
SOUTHERN UNWN

20.

issue of Dec,

Details—See

is offering 166,667
shares at..75 pesos per

preferred

4-

Details—See issue of Nov.

Offering—Company
Mexican

amendment.

issuance

for

rants.

of

and

NEW

served

preferred, par 75 pesos, and 614,667 shares
common, par 25 pesos.
. .
. v
Details—See issue of Dec. 6.

20-year debentures due Jan. 15, 1966
102,000
shares
of cumulative pre¬
ferred stock, Series B, par $100, The in¬
terest and dividend rates will be filed by

000

7

v

JtlcMaions

New Security

oj

7 7-: 7

•

■

T?1

•#

c

1

I

457,020 shares of common

stock,

WESTERN AIR LINES,
filed

a

shares

INC., on Oct.

29

registration statement for 197,876
common stock, par $1.

of

Offering—Company

will

offer

warrants

THE COMMERCIAL & FINANCIAL CHRONICLE

storing

Truman's Proposal No Remedy
(Continued from
from

Statistical

the

Abstract

U. S. for 1943, pp.

the

'

,

'

'

Averages

1

Per

f

1

V

of

Stock-Paying

'

'

All

Stock

I

Return
in
Miles

,

Outstanding-!:

of

4.39

Investment

Total

on

R.R.'s

|

In

in-

15-year

the

during

that income per-dollarinvested was reduced almost half.

'

At

the

the

of

close

the

Board?

period,

com-

!]';■{

15%

a

allow

The

increase.

manufactur¬

the

advance

to

prices enough to
higher wage costs. Since
the. income of the buying public
will hot stretch, higher prices for
cars will mean fewer sales, small¬
the

cover

values

In the

1921-25' period, the average price

| per share of the 25 railroad stocks
!,(f included in the New York Times
h Index*! was:; $65.08.: In the period
: ; ]■ 1946-40; this average had dropped
to $28.v5; a;declihe of 56%J In the
first of' the? periods^"'just men7 H f tioned the total par value ..of railJ 44way./•.stockr-outstanding averaged
i
Slightiy>niore than $9.13 billion:

production, and less employ¬

er

'

77-'?:
A few months hence,? the CIO*
will again demand a 30% wage

ment in automobile factories.
-

.

rate

increase.

c-

The

Board will.allow

Again

sales

Mediation

.

15%7increase'.

a

will; fall

offh and
workers will lose their jobs, ?
-

•

(

-

f

are; that the averprice of the stocks in the New
Times list was not higher

age

!

York

value of
If this is
true,? the total market value of
;
4
railway
stocks > outstanding
in
V ! 1921-35 was probably around $6
billion and the shrinkage in this
shares

all

paralleled * by
events
in
other
industries.
Unemployment

outstanding.

will

period

or

trustees.3

;

.

over

problem of the
declare that free

the

Government

take

the ma.ior industries.

In

the

meantime,

in

ment,

the

endeavor

an

to

j

Govern¬
furnish

employment, will be inflating the

currency—thereby?
thrifty

of

their

paving the

;

way

"While the average citizen

rhight
Labor Act

obbing

the

-■

investments

and

for disaster.

legislation
the appointment of
Mediation
Boards,

authorizing
fact-finding

Employees Did Not Benefit

l

No doubt, asking for.

-

doubt that the Railway

will

that

mand

Moreover, between the begin¬
ning of 1921 and the end of 1940
railway stocks and bonds having a
par
value of $7 %•, billion .were
placed in the'hands of receivers

■

CIO

the

enterprise has failed and will de¬

least $3 billion.2

was at

become

day.

value between then and the 193640

President Truman has been actu...

,

,

,,

,

ated by a most commendable de'? fl"4 a Practical wa? t° .fetI
it had greatly benefited the em-; tie labor disputes. The crucial fact
ployces Asa matter of fact, in this which he. overlooks is that mo
had helped the railway investors,.
he would take it for granted that

-•

Mediation Board, regardless of the

-

period of declining prices, hourly
earnings of employees rose enough

42%.

-to lift real wages
.(./.■■•yy ;y..v

Average
"Cost

pay

of

(1935-9
in

Real pay per

$0,730

of

lndexrv

living"

123.4

base)

100.4

100.

.

$0,725

;

such

142.

y

This was, of course, fine for the

demand

for

it.

a

rate and

wage

secure

who kept

pay per

-

(Continued from
and past year allotments that had

fair wages and far fuller

ployment

than

can

be

ever

em¬

se¬

Extended

AFL

or

under

or

Govern¬

the

draft

law

until

May 15.

Raised

the

national

debt

limit

Extended

10th

price

controls

the middle of 1946.
Cut

income

repeal

of

taxes

the

and

working conditions.

Approved a governmental
ganization plan in response
Simplified

administration

property

Mayor said, that "the whole pro¬
gram
would
be
shattered
to

treaty.
Compromised

disposal

labor

mittee.

of

in

Increases

ac¬

the

Presi¬

April 1 instead of retaining them

;?The question is, how many other
worthwhile
projects throughout

dle of 1947

control

until

current

statutory

of

war-created

mer¬

chant shipping surpluses, and leg¬
islation setting up domestic con¬

of

smithereens."

Federal

in

minimum wages.

en¬

employment
service offices to the states by or¬
dering their return arourld next
under

major

trol

atomic

over

energy.

Many of those matters were the
subjects of specific recommenda¬
tions in

mid¬

one

or

more

Mr. Tru¬

of

.

Voted

the

country may be "shattered to
smithereens" if inflationary forces
are allowed
to get out of hand?
Clearly, occurrences of this kind
are not going to add
anything to
purchasing power, rior (to repeat
President's phrase) are j they
"going, to do anybody any goodlabor, business, agriculture, or the
general public."

as

435

its

annual

Truman wanted.

House

members

allowances

expense

man's 10 messages.
The
lawmakers

.

President's bid for

of

$2,500 each, which the Senate de¬
clined to approve for itself.
j
Pending Legislation
But
year

action on:
multi-billion

:

The

v?/:

Prices

Source

a

of

Pur-

chasing Power

Finally, in all the talk about
purchasing power, it should be re¬
membered that purchasing power
can
be
increased
by
lowering
prices as well as by raising wages.
Moreover, whereas the purchasing
power advantages that flow from
wage increases are limited to the
groups affected, those which flow
from price reductions are, spread

7 :7

for repeal

British

of the Johnson act re¬
stricting loans to foreign nations

loan

7v7?7?7 ■'•

in default of their debts.

-v

the entire population wher¬
there
a
is
buyer of the

over

ever

product.

buyer in the
shape of a cheaper, better car.
Everyone
recalls
what
hap¬
pened to automobile prices and
the quality of the product, and

ate

what

tion

happened in the automo¬
industry in the .'20s is the
classic example.
There the bene¬
fits of rapidly improving technol¬
ogy were shared both with labor
and with

the^public.

Though the
leader in paying
high wages to its workers, never¬
theless a substantial part of the
economies resulting from manu¬
facturing progress was passed on
industry

was

a

did

branches of Congress, rather than
two-thirds
of
the
Senate
only,

ratify treaties.
The

for

the/country.
It
America literally on wheels,
wrought tremendous changes
in our way of living.
And no
group benefited more than labor.

Mr.

of

*

fate befell

same

a

sugges¬

that

Truman

Speaker of the House rather than
the

One

but

has

motor

to

glance
parking lot* of

car

into

the

evidence.

7

7

Never,

have

however, could all
about

come

under

this

to

the
be

operate

driving

forced

this principle

on

past 50

been

years,

over

would still

we

around in

horse

and

buggies.

on

unemployment

|| STATISTICIAN
Public

utility

analyst

wanted

by prominent investment firm.
Must

be

thoroughly

the utility field.

versed

in

Excellent op¬

portunity. State experience and
salary
D

desired.

Address

On Paine, Webber Staff
■

MINNEAPOLIS, MINN.—David
J.

Hanscom

have

and

rejoined

Jackson

&

John

F.

Paine,

Curtis,

Rand

after returning from

Steele

Webber,
Tower,

service in the

armed forces.

77 Wanted—Institutional Man

$1

Large, and prominent investment banking firm de¬

1224, Commercial &

cial

Chronicle,

25

Finan¬

Park

New

York

sires the services of

tional corporate

salesman

now

doing

an

institu¬

sayings bank
reply, which will be held in strict con¬

In your

man.

a

business, preferably

a

Box

fidence, please state experience and qualifications.
Our salesmen have been advised of this ad.

Place,

.

Box BR

8, N. Y.

Reply

1224, Commercial & Financial Chronicle, 25

.

Park Place,

New York 8, N. Y.

cm A.

shrunk. Fewer

needed/

men were

excess • workers were
and had either to find

the

hence

off

laid

I work?

in other

industries

broker

Room

be-

or

as

Market

Letter

Writer

situations 'tor? 'broker?
1125; 201 West 74th St.,

special

on

'--New York 23, N. Y.

!v

••

workingmen

i

(,Vl Statistical Abstractffor 1943,
2 Ibid, pages 455-56.
-C-.
5
;3 Ibid,

pages,

455-56.

P.

for

1943,

454.

5 Ibid.

pp.

in

Experienced analyst of industrial
and

railroad

securities, available.

cial Chronicle, 25 Park Place, New
York 8, N. Y.

404-5.

•

years

Box L 1227. Commercial & Finan¬

'7

the U.S.

4Statistical Abstract of
•'*

373'.

page

'

'

I '"4

accountant

experience

stock

and

with

shareholders

for

shares at $20

the

purchase

of

share. They will be
permitted to buy one share for each four
4881/a

held.

shares

will'be

An

a

additional

throueh

offered

plovees and others at
An

fered

additional
to

76,310

employees

share. ' ,y
'
Underwriters-—It

and

share.
shares will

.

1'
.

the

issue

officers

Offering

not.

be

at
,.

is

em-

a

per.

tb*t

shares

19,077

options; to

$20

of¬

$16.50

• -

-

contemplated

will be Underwritten.

P'ostnQned—The

postponed the offering.

'company"' has

Senior Accountant

brokerage
an

many

accounting

excellent diversi¬

firm

as

accountant

Experienced

partments.

Recent

naire

audit

and

Will travel

or

Ex¬

all

question¬

dress replies to Box CFC.7, Com¬
mercial & Financial Chronicle, 25

Place, New York 8, N. Y.

r

Y.

service

traders

as

well

Mr.

two assistant

Write or telephone
7
Joseph H. Young, partner.

salary

requirements.

Chronicle,

25

-

J. Arthur Warner & Co.
120 BROADWAY, NEW

Park
i

YORK 5

Telephone COrttandt 7-9400

:
Direct

Private

Wires

to

Boston, Philadelphia

;




as

men.

locate anywhere.

Financial

N.

or

experience.

Available January 1st. Address
Box
CN1213,
Commercial
&

8,

installing four additional trading positions

Trading Department and require the services

or

—Questionnaires, Balance Sheets,
etc.
Available January 1st. Ad¬

New York

are

our

de¬

Moderate

Place,

in

traders

Stock

Complete Wall Street experience

Park

7 • Two Assistant Traders
We

of two high grade

member

j

specialist

background desires connection
larsre

for:

Two Traders

with

change

102,-

with
as,

fied public accounting and tax

auditor;.
to

We have opportunities

Brokerage

■■

Senior

STATISTICIAN

dim-in*-

greatly

was

Stock

Accountant-Auditor

? come paupers.. The total pay roll
declined sharply. This meant that

the usefulness of the railroads as
a source of income for
American

com¬

law revisions, and it
down sharply the so-called

full-employment bill the Senate
passed, A final verdict was left
until next year, when conferees
will write a compromise version.

that recognizes increased
purchasing power only in higher
wages and .would monopolize in
wage advances the gains resulting
from technical advance. ..Had the

industry

Presi¬

pensation
toned

program

automobile

become

the

the

President
;

labor

a

State
both

House refused to go along
Senate
and
with
the

The
with

the

see

of

dent and Vice-President die.

great

any

industrial establishment to

Secretary

President should

•

>'j.

the

put

and

-

What

bile

The House passed but the Sen¬
shelved a proposal that both

to the motor vehicle

it

the

labor leg¬

new

or-fight law despite White House
insistence, and they didn't get out
of committees a Truman request

•

Congress put off until next

proposal.

rejected

islation by Christmas; months ear¬
lier they refused to enact a work-

.

>

Lower

.

i

.

ma¬

a
permanent
Employment Practice Com¬

Fair

Disposal
with

return

on

handle

>

•

fact-finding

Liberalization of unemployment

cord with another Presidential

dent

employment"
,

of

compensation rates.
Establishment of

reor¬

to a
President Truman.

request from

(Continued from page 3165)
planned in the Authority's $116,390,000 schedule would mean, the

his

in

asked

yesterday.
"full

chinery to
disputes.

tax

1, 1946.

"surplus

Truman

Creation

ordered

profits

excess

Mr.

message

legislation.

v

;/ Rewrote the G. I. Bill of Rights.

Jan.

-

So-called

until

mental fixation of wage rates and

?7?.7

which

to $300 billion.

cured either under the rule of the

CIO

and
pay
raises for
Congressmen.
Universal military training.
Merger of the armed services-1-

not been used.

next

3135)

page

Pensions

full

his job, but higher
hour meant higher trans¬
v>
Apply the Real Remedy
;
portation expenses, especially
/Therefore, the President would
; when higher rates of pay were acact
more
.; companied
wisely if he would ask
by "feather-bedding"
'
practices instead of by increased Congress' to repeal the Wagner
i efficiency on the part of the aver- Act,, and make labor subject to the
r
; age worker.' Higher operating ,exanti-monopoly provisions of :the
v penses
greatly
hampered
the Sherman Anti-Trust Law, thus re;> railways in meeting the growing 6
Statistical Abstract of the U.S. for 1943,
v competition :
of : ships,
buses, pp. 454 and 462.
;.,r :
4 trucks, pipe lines, and electric
!
power
lines. Therefore, despite
: marked
improvements in tracks
? and
equipment, traffic was lost to
competitors. ; and; net
revenues Desires to make connection with
man

•

•

the

employment while retaining indi¬
vidual freedom. The job is beyond
the capacity of mediators. ?
:
, ;

'

!

and

balancing done by competi¬
tion is the only way to arrive at

v

$0,509

-

hour (Index)

labor

The

.

In

pay
per-- hour
1935-39 dollars

(Real

,?

,■•••.

Averages
1936-40

hour4--?; $0,629

per

ability, patriotism, and honesty of
men composing it, will be able
to arrive at that particular wage
rate which will balance the supply
the

1921-25

.

*'

-.

l.yyv ■ ■ • y:.,

officials to worry about
rates. Competition would as¬

wage

great

'

,,

or

the

What has been happening in the
motor car field will, of course, be
•

than the average market

•

(

More Inflation to Follow

j. The indications
y

molestation, he would find
entirely unnecessary for Gov¬

it

Is Far-Fetched

ers

These declines in earnings were,

tion

30 %

a

Adjournment of First Session of 79th Congress;
Legislation Enacted-Measures Pending

property protected from destruc¬

Says Deflation Fear

grant

the
such

the right of owners to have their

and

OPA will

7?

country wfere bankrupt.

in

secured

The Board
will meet, listen to the evidence,

-

! it. of course, reflected in the
of' the' railway securities.

demands

rate -increase:

wage

..;j panics owning nearly a third of
[ • the entire railway mileage of the

The* CIO

If he

legislation, and then used all the
powers of Government to prevent
monopoly and to protect freedom
of
contract, the right to work
where and when one pleased, and

sure

light of our experience
with the Railway Labor Act? what
can be expected in the automobile
industry if President Truman ap¬
points a - fact-finding Mediation

was

competition

ernment

$1,882

$2,820

1 Rds.)„

(CI.

Unemployment Will Spread

73,963

show that
railway in-

figures

above

\testors

terim

1,047

1,772 :

Pay of Employees.

(millions)

Staggering Losses Resulted

.

what happened to the

|

Total

$4,071

$6,004

(mllllonst^.

Employee#-

under Re-

Railway

The

; :

of

1936-40

Railway

(thousandsi

2.30

4.12

ceivership-or Trusteeship_13,687

j

Number

2.02
: •>/: /

0 '

v

cent)___J

(per

from;

Operations

35.8
V.?

i62.0

Dividends

J

1921-25
Revenue

»

Per Cent Dividends Paid on*

i

,

Cent

Averages

.

1936-40

1921-25
'

1

shown by the

are

following'figures:6

455-457:

'•

3136)

page

ished. The facts

of

free

market.

labor

3167

,

v i

,

(■.'

and Hartford

THE

Thursday. December 27, 194;

COMMERCIAL & FINANCIAL CHRONICLE

3168
the

Market
3131)

(Continued from page
To

visualize the

len

situation we're

of alleged

which was $28

$64 billions in 1941, stands at pres¬
ent
around $252 billions.
This
creation of huge Government debt
has resulted in the creation of a

near

paint brushes to popsicles, to the effect that price ceil¬
ings are ruining trade.
One vic¬
tim this past week, for instance,
testified
t h a t r p r i c e
ceilings

thing from

brought
down to

sight. Today we are
financing the world.

with

production in his plant
51% of capacity. The tes¬

ing for $6 billions, Italy $1V<> .bil¬
lions, France and Netherlands $1
billion each, to say nothing of

slated for China.
isn't spent di¬
rectly in this country by the di¬
rect beneficiaries, a large part of
it will eventually be spent here by
the indirect recipients. These large
foreign loans will require a spe¬
cial
approval by Congress but
there
are
other
agencies with
ready dollars to spend, such as the
Export-Import Bank with $314
billions, the monetary fund (Bretton Woods) with about $8 billions.
credits

Even if this money

the picture is the
debt which, in turn, ac¬
for
the
vast; available

Basic factor in

supply.

instance, this coun¬
try's
public and
private debt
which now stands at nearly $400
billions.
This is double that of
1941.
As shocking as this may
seem it hardly presents the true
for

Take,

t

picture since total private debt
today, standing at $141 billions, is
practically unchanged from $136
billions in 1941.' Actually, were it
not for an increase in the short
private debt to finance

term

The

$3% billions credit to Britain is
merely the beginning.
Next in
line will be Russia, reportedly ask¬

huge

money

achieve

bound to
time
and

a

seem

record peace¬

volume once reconversion
labor bottlenecks are elim¬

Surely the implication

inated.

swol¬

exports

S.

U.

Clearly,

ANNUAL

of

AVERAGE

•'
Mkt. Value Mkt. Value

(Millions of Dollars
Millions

N.Y.S.E.

U.

1945

-

...

_

1.491

1S43

1,478

1942

1.470

1941

1,462'

1940

'

*

;

Stocks

per
Listed Sh.

48.530 v1

69,560

$44.10

22,770

41,610

17,840

37,700

51.650
46.600

34.65
31.60

9,647
7,926

L

1938

.

—-

i937_„

4

—

1,425

■' 6,521

1,394

"

,

31,540

35,080

29,290
25,820

39,280
42,430

-

.

vi

'44,180

22,560
i-.

6,471
4.773

•979.8

1929___

'

7,088'.

lr429

1939

Deposits

12,880

\

1.450

'

Listed

28.030

Demand

Circulation

1,573

1944„___;_____.

Time &

-v

.Money in

Listed Shrs.

October

Expects 50% Gain in

been

moving

consist¬

rather

up

I'

new

50%

:

•

■

.

No

37

construction ' next

20,430

53,840

20,180

74,410

millions

$20,430

year'

millions to about $69,560

$53,840
millions

(29 2%). Contrasting this

situation

of

of shares

Dealer

-

Our Reporter

in

..3140

Governments.

on

Utility Securities.... .V,
Securities ......., ,>...

Public

.

Real

and

•

-•

noted, many more shares

ing today than in

been

,

allowance for this, it

and

Haile Mines Inc.

rate

will be ob¬

Schoellkopf Hutton & Pomeroy

RALPH F. CARR & CO.

far'has

Boston

New York

Teletype

Hanorer 2-7913

BS 328

there

margins

Ex¬

—it'll

change in 1929 was around $76.00.

TNT.;

share on the New* York Stock

simply mix in

;

;

•

a

dynamite

little more

\

specialize in all

We

Insurance and Bank Stocks

the holding

lengthening

or

BOSTON 9. MASS.

%

Hubbard 6442

gaiiis tax

the capital

period won't remove the

listed

a

Interstate Mining

Oklahoma

Industrial Issues

,

the value of

that

y

•

Telecommunications

Finch

of dynamite in the mar¬

upping

or

Making

■v

.

Waltham Watch Co.

!'[l:

'

situation—and 100%

ket

■''

v

of the market

anything, certainly indicate
is plenty

HA. 2-8780

1-1397

Keyes Fibre Co.

rather tame affair in strug¬

a

Y.

Sardik's Inc.

■*

gling back to around the highs of
1937 but the figures, if they mean

outstand¬

1929.

1945 it was $44.10

stock market thus

The

N.

Airplane & Marine Instruments

it was $45.60.
■

1919

Dealers Ass'n_

Security

Teletvoe

.v,.......V....3163

at the top

1937

in

F.

Exchange PL, N. Y. 5

!

.3134 '

tf'c-i;

In October

.

served

/

'

Investment Trust Issues

Stocks and Bonds
TEXTILE SECURITIES
\
Securities with a New Eng. Market'
Public Utility
.

"...76,00

6 *

ESTABLISHED
Members N.
40

Ohio Securities Section on page
3141,

$74,410
millions.
It should be
pointed out in this respect that
prices today are not as close to
1929 levels as the total market
value of listed securities
would
indicate.
There are, it will be

"

M. S. WlEN & Co.

Salesman's

Says ...V,•

*

of. securities

value

market

J L

i

Cinema "B"

Securities...i;.... .3136,
Corner...... .3157
Whyte

Estate

Securities

millions

$20,180

deposits

mand

i.'--,

Tomorrow's Markets—Walter

de¬

and

time

total

i

Mexican Corp.

.3142

Railroad

$4,773

circulation was

and

millions

:

•

..3161

Exchange was 979.8 millions and
money

:

..3146

Funds,

Reporter's Report.,.'...'.

Our

listed on the Stock

26.60
29.20
29.10 e
38.60

Insurance

and

Mutual

in that year the total num¬

serve

the

Helicopter

Majestic Radio
U. S. Finishing,

interesting to ob¬

with 1929, it is
ber

from

securities

listed

Bendix

as

Stocks........3144
Personnel Items
3136
Bookshelf3137
Calendar of New Security Flotations.3166
Canadian Securities
..3140
Dealer - Broker Investment Recom¬
mendations and Literature.......3138
.3160
.Municipal News and Notes....

$48,530
value

to

on

for

Pa?e

Broker

millions (137% ) and market

1945

for

record

England Public Service

greater.than in 1945 in th£
States
east
of
the
Rocky

Bank

(12.8%)
in
October 1945,
but
in circulation in the same
period increased from $6,471 mil¬
lions to $28,030 millions (334%)
and
time
and demand
deposits

the

of

Gaumont-British "A"

Business Man's

money

from

New

%

remained

has

Exchange

23.90

30.80 "

20,230 -5" •*, 41,420 r;

Stock

eastern

.

first ten months of this year.

INDEX

fairly constant for a long period
of time, increasing from only 1,394
millions in 1937 to 1.573 millions

expected

160,000,000
the-basis

tarding factors, F. W. Dodge Cor?
poration, fact-finding organiza¬
tion for the construction industry,
estimates total dollar volume of

particular explanation is re¬
quired as to the figures in the
foregoing table as they are self*
explanatory. Briefly, the number
of shares listed on the New1 York

ently:

37

present re¬

Even in the face of

Look, for instance, at the folr
lowing figures if you want to see
one reason why stock prices have

the

in

States is $4,750,000,000i against $3,-

Dollar Volume in 1946

j

Supply and Demand

j

.

The estimate for all

construction

New Construction

•

Debt and Money

counts

is
faced

scale debt retirement

Large
not in

will become more rather
than less vociferous.
All of which
merely tends to emphasize the in¬
flationary aspects of the present
situation.
v'

in

of money.

huge supply

timony

rise

significant fact,
that public debt,
billions in 1929 and

more

is

however,

and from all different
kinds of firms turning out every¬
and

Mountains,

ex+

supply with the
prospect of a further substantial
increase makes the potential de-^
flationary aspects of the present
situation seem quite unrealistic, j
money

be

The

war.

murder in
world come from far

torture and

the business

inventories, private debt
lower than before the

war

would

heading into all one has to do is
to read the papers. Already stories

the

and

situation

debt

-

panded

To All

Of Our Business Friends

Frederick C. Adams & Co.
Specialists in

Unlisted Securities

New England

Thank you

Foreign Securities
MARKETS

favors to date.

your

'''•

ship

will be

greater

of

one

even

having met

its

'

Established In 1922

•

Tele. BOston 2X

Tel. HANcock 8715

cooperation and

closer

due to

confidence,

STREET, BOSTON 10

24 FEDERAL

business relation¬

the end of 1946, we hope our

At

-LLv

Teletype
NY

sincerely for

the

of another year.

additional test of the vicissitudes

1-971

r.ARl MARKS S, r.o. INC.
t

FOREIGN SECURITIES

OVER

^PFrTAT.WS

Telephone

50 Broad Street

Actual markets in a wide range

.

-

of

SECURITIES

THE - COUNTER

New York 4. N.Y.

.

AFFILIATE: CARL MARKS £ CO. Inc.

2-0030

on the 5% $100
preferred stock of a .

ARREARS

HAnover

par

CHICAGO *"

Ensiand Company

New

Kobbe, Gearhart

established in 1845.

& Company

INCORPORATED
...

NEW ENGLAND

Members

.S-Sf

E X TT IK

.

*

45

NASSAU

New

:

Security

Association

Dealer*

\

NEW. YORK

STREET,

philadelphia

telephone

Bell

telephone

new

Enterprise 6015

RECTQR 2-3600
•

York

New

1944 Earn.

Bef. Taxes

1944 Earn. After

5
Teletype

1-576

york

.

.

.

.^64.43

i. 21.88

Taxes

Earnings lince 1939 range
to $57.33 a share

$12.82
taxes.

k

y

ji'

;

from
after

'/ ■

,,

England Local Securities
5^

Recent Price;.:-

y/.-.;.

WALTEIt J. CONNOLLY & CO.
INCORPORATED

1923

.

-

.

..

Write
:T

.

24

FEDERAL STREET, BOSTON 10, MASS.

.

-

BANK

—

Northern

Kadiator, Pfd.

Smith

&

Wesson

Broadway *

New

York 5

Bell Teletype

NY 1-886




INDUSTRIAL

—

V"

1/
BOUGHT

—

SOLD

—

WANTED

QUOTED

Blocks

$1.00. "*

Average earnings 5 yrs. about $3.

A

bank

No preferred

about

stock.

loans.

low-priced

6%.

REMER, MITCHELL & REITZEL,
208 So. La

stock to yield
•

WESTERN UNION
TELEPRINTER

Amos Treat & Co.
Wall

St.

New York 5,

BOwling Green 9-4613

of Securities

INC.

Salle St., Chicago 4

RANdolph 3736

Special Report Available Upon Request

40

J.

•

labilities.,,

5

Mass.

Tel. CAPitot 0425

COMMON STOCKS

...

3. Current assets 4.35 times current
4. Current yearly dividend

St., Boston 9,

State

REAL ESTATE

—»

BONDS, PREFERRED AND
sh.
share.

1, Net current assets $13.56 per

7.

Telephone COrtlandt 7-0744

'

LUMBER & TIMBER

2, Net book value $20.63 per

No

120

—

Founded 1897

6. No bonds.

W. T. BONN & CO.

Engineering

PUBLIC UTILITY

Works

Columbws Auto Parts

U. S.

M.C.P.

INSURANCE
148

Pressurelube, Inc.

call for Analysis

Bell System Teletype BS-128

Telephone Hubbard 3790

Sunshine Consolidated

or

.V'"

Specializing in Unlisted Securities

'

N. Y.

BELL

SYSTEM TELETYPE
CG-989

Hill, Thompson & Co., Inc.
Markets

and

Situations

for Dealers

"WUX"

120

Broadway, New York

Tel. REctor 2-2020

S

Tele. NY 1-2660