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BtJt. ADIfl
4 1942
fr*»ARY
In 2 Sections
THURSDAY
Edition
Final
-
Section 1
Reg. U. S. Pat. Office
New York, N. Y.,
Number 4130
Volume 156
HOW DID WE GET THIS WAY?
OUR
By H. B. LOOMIS
REPORT
Profits-Standard of Ethics One Of The
Highest Of Any Business In The Country
and JOHN B. KNOX
What the securities
Company
of John B. Knox &
Copy
a
Securities Dealers Need No Ceiling On
CAPITALISM
THE ANATOMY OF
REPORTER'S
Price 60 Cents
Thursday, December 3, 1942
industry of this country needs today
bunk." For too
investment bankers and brokers have been
The public offering of $12;500,ing postwar planning labels, continue as in the past to pore unfairly placed on the defensive by demagogues, politicians
000 of 30-year 3V2% bonds of the
over their blue prints with their backs to the world of real¬
and the Securities and Exchange Commission.
Recently
Central. Maine Power Company,
ities.
Their products are every whit as dangerous as they certain Government bureaus needed office space in New
due out today, appeared assured
of a highly receptive market.
ever were—perhaps more so since the war appears to have
York City.
It is no secret that "Wall Street" addresses
The first corporate undertak¬
lent them additional psychological support.
were no asset to landlords on that much maligned street.
ing
of
any
size
in several
The best way to combat such seductive proposals as Need one say more?
is to
Editor's Note:
months, this operation was not
of a nature
to interfere with
fi¬
the Treasury's immense war
nancing project which
got un¬
Monday.
der way on
those
bankers in advance
investment
offering indicated that
placement of the utility
bonds was expected.
Presumably, while the sponsor¬
of
the
quick
'
ing syndicate had to await Secur¬
ities and Exchange Commission
clearance before opening the sub¬
scription books, dealers were able
to judge the situation adequately
by the flow of orders and inquir¬
ies making their appearance.
originally
This financing was
scheduled
months
many
but due to changes
ago,
and the need
obtaining stockholders' ap¬
for
proval of plans calling for the
merger into
Central Maine of
the Cumberland County Power
Light Co., actual marketing
held in abey-
&
of the bonds was
PVUvr-
1
until now.
ance
paid
the
company
bonds and the re-
Bankers
106.31
for the
today
offering
scheduled to
was
price of 107%.
at a
made
be
Plenty To Keep Busy
banks, investment firms
bending to the task
With
brokers
and
the Treasury drive to
$9,000,000,000 of war funds
Wall Street, though it
been short on profitable busi¬
of assisting
is to turn the; flood
them.
way,
truths upon
It
Discussion among dealers and
now wear¬
light of fundamental
this
hope of doing its part in combating
with
is
menace
makers,
appearing almost daily, perhaps the only ef¬
now
fective
New Deal program
that the "Chronicle" is
^presenting
cles, of which this is the fourth,
which call the reader's at¬
in
to
have
Men
no
historical
and
sense
history has been written with
political viewpoints without an
■■
■
even
:
if they had,
ponderosity from
explanation of the extent
soggy
underwriting
new
plenty to
oc¬
its time.
cupy
(Continued on page 1971)
are
,
uprooted before a better crop can be
DESIGN
tive
mainly engaged in attempting to discredit representa¬
government and establishing "strong leadership," which
(Continued on page 1972)
Investment Trusts
REPORTS
In connection
Invest
with
each
and pave
MANAGEMENT PROBLEMS
day
Our
ENGINEERS and
the way
Buy War Bonds
and Stamps
PROSPECTUS
OBTAINED
R. H. Johnson & Co.
STREET
AUTHORIZED
Established 1927
San Francisco
NEW YORK
Chicago
_
H. Hentz & Co.
Jlfembers
i*
-
York
York
New
York
New
-
m>7;-
Stock
Exchange
Curb
Exchange
Cotton
Exchange
Exchange,
Commodity
New
And
Inc.
"
JERSEY CITY
I
""
Actual Trading
Markets, always
Year-end
re
.
ore
SELLERS—
BUYERS.
—Net Prices
Cotton Exchange Bldg.
—
Kobbe, Gearhart & Co.
INCORPORATED
Members
PITTSBURGH
DETROIT.
F.,
MEXICO
MEXICO.
P.
GENEVA.
SWITZERLAND
N.
Y. Security
45 Nassau Street
Tel. REctor 2-3600
Philadelphia
Dealers Ass'n
New York
Teletype N. Y. 1-578
Telephone
Enterprise 6015
Utah-Idaho Sugar
service with Chase
other Western Securities
correspondent
J. A. HOGLE & CO.
facilities
Established, 1915
DEALERS
Members New York
Salt Lake
City
•
Stock Exchange
Denver • Los Angeles
and 7 other Western
Member Federal
Cities
Underlying Mortgage
Railroad Bonds
26, Bishopsgate,
London, E. C.
Office:
Head
Branches
in India,
and
Colony
Subscribed
and
Zanzibar
HART SMITH & CO.
Capital.. ..£4,000,000
.
conducts
banking
and
also
.£2,000,000
description
exchange business
Bank
Trusteeships
.
£2,200,000
Fund
Reserve
Inquiries invited
Burma, Ceylon, Kenya
Aden
Capital
Paid-Up
The
Reorganization Bonds
to
Kenya
Deposit Insurance
Corporation
the Government In
Colony and Uganda
Bankers
BANK
\
of INDIA. LIMITED
other Exchangee
NEW YORK
CHICAGO
CHASE
OF THE CITY OF NEW YORK
NATIONAL BANK
Board
Over-The-Couflter Securities
N. Y.
THE
Broaden your customer
634 SO. SPRING ST.
LOS ANGELES
PLACE
Whyte
Light
IMCOirOIATIS
IS EXCHANGE
I
of Trade
Orleans Cotton Exchange
Chicago
Markets—Walter
1967
BE
HUGH W. LONG and COMPANY
New York
PHILADELPHIA
Troy
Albany
Buffalo
Syracuse
Pittsburgh
Williamsport
Dallas
64 Wall Street,
BOSTON
1858
MAY
FROM
from
or
INVESTMENT SECURITIES
Established
Tomorrow's
1964
1965
1964
1971
Amalgamated Sugar
and
CONSTRUCTORS
52 WILLIAM
..........
Securities
Securities Salesman's Corner..
.....1961
Reporter's Report
Items
Securities
Estate
Municipal News and Notes
...1968
Our Reporter on Governments
1976
Says
.......1973
Uptown After 3
....1973
Utah Power 6
VICTORY
to
,
Sanderson&Porter
New
v.^...
Real
NATIONAL
FINANCING and VALUATIONS
-
............
Specialists in
SURVEYS AND
«
Stocks....
1966
Security Flotations. 1974
Bank and Insurance
Calendar of New
also
^
Railroad
Page
CONSTRUCTION
AND
•
Personnel
INDEX
Reform and progress are
are
QUICK ACTION ON
securities business included.
Not only is the securities business no different from
conditioned by economic any other line of business, when it comes to the funda¬
forces.
It records the succession of events but not the mental relationship which exists between "buyer" and
reasons for their occurrence.
It might just as well have "seller"—but contrary to general belief, the securities busi¬
been written in cryptograms.
Men seem to know little and ness, as it is conducted today, is possibly on a higher plane
care less about
the origin of the things which determine of honesty and integrity than almost any other business in
their lives.
A study of the way by which things happened the country.
Every year the vast majority of < securities
must be added to the catalogue of the things which hap¬ dealers handle literally thousands of satisfactory trans¬
actions with individuals, who know little or nothing about
pened before we start to remodel the world.
the investments to which many of them owe their very
Today we act like a mob of ugly herd-minded hooli
These are the cases that no one ever knows
gans, scrambling to pick the fruit of the tree of capitalism subsistence.
and destroying the tree in the process, regardless of the about, or hears about—except those who are engaged in the
years of sacrifice which made the crop possible." That the securities business—and they unfortunately never seem to
tree must from time to time be pruned and cultivated in make this fine contribution to the public welfare known to
(Continued on page 1975)
order to keep it healthy, is vastly different from the con¬
social institutions
which
to
terms too loosely used, just
as are the words liberal, reactionary, politicians and states¬
man.
Words have no absolute value.
They become falsi¬
fied as to their elemental meanings.
The liberals of today
had
capacity of the American citizens who are mem¬
industry to conduct themselves according to the
laws of the land which regulate all forms of business—the
in the
bers of this
reaped.
far as
appear to accept the twisted conclusion that "the se¬
curities business is different from other lines of business;
or
"v-.V-.;
IV
Part
cept that it must be
so
Witness the brokers and dealers who
perspective.
proper
pointedly to certain fundamentals often overlooked hence, it should be more strictly regulated by outsiders
this day and time.
It can think of no better contribution than any other business." Of course, the securities busi¬
ness is no different from any other business in its funda¬
postwar planning. mental moralities, its relationship to the general warfare,
has
concerned,
Unfortunately this constant barrage of outside criti¬
deep that it has become difficult for some
of those in. the securities business to see things in their
f
cism has gone so
tention
this month,
is
many years now,
series of arti¬ today
a
raise
ness
"stop swallowing the other fellow's
every
and
Executorships
undertaken
Members
New
af
Bell
New
'
Assn.
York Security Dealers
52 WILLIAM ST., N.
York
Y.
Teletype NY
HAnover
Montreal
GUARANTEED
2-8980
1-395
Toronto
RAILROAD STOCKS-BONDS
is-s,
Telephone
BO.
Gr.
9-6100
52 Broadway
NEW
YORK
Teletype
N.Y.
1-1063
THE COMMERCIAL & FINANCIAL CHRONICLE
1962
.Trading Markets in::
We Maintain Active Markets in U.S. FUNDS
Tennessee Products
Brown Co.
Chas. Pfizer & Co.
5s-59, Pfd.
Missouri Pacific
%s, Serial
& Com.
Gold Dredging
Bulolo
5
Dealers Urged To Give
for
Addison
Kerr
"Securities
r.
nancing
Gold
*
Noranda
:V
,
,;
Prj S1/?5* 56-73
Mines
Established
Ltd.
Members
Dealers
York Security
New
40 Exchange
Ass'n
Members N. Y. Stock Exchange
HA 2-2772
PI.. N.Y.
BELL TELETYPE
ErniP
Goodbody & Co.
1920
BArclay
:
Teletype NY
War
for
Committee
the
President
■..
are
of
the
Bankers Association;
Members New
H.
25 Broad
i
Manufacturing
Long-Bell Lumber
American Export Lines
Franklin Fire
i
Great American
i
Bank of America NTSA
Home
Braniff
North River
Pollak
Hanover Fire
Airways
E. Staley
A.
upon
with
New
1926
Established
Direct
to
Wires
LOS
Members Neio
ANGELES
inquiries
on
—
Cities
Association
Stock
Ex¬
announced.
was"
Mr.
recently
Manager
department
stock
;been with this firm and its
.
pre-,
decessor, Babcock, Rushton & Co.,
PHILADELPHIA
—
the
is
trading
]of Goodbody & Co. here and has
Teletype .NY 1-1288
HARTFORD
—
these
in
Issues
Bell
York Security Dealers
BOSION
of
Chicago
Invited
since
1928.
He
the National
sociation
is
member
a
of
Security Traders As¬
and
the
Chicago
Traders Association.
Bond
;
Firms, and Dominick Rich, Chair¬
Government Security Deal¬
Sizeable Net Markets In
Phillips And Baughan
Preferred
Circular
Company
(Special
Preferred
on
request
JAMES D. CLELAND COMPANY
65
Broadway, New York
Bell
Whitehall 3-9895
System Teletype NY
% Why
Condemn and Abuse Wall
Street, Financial Foundation
of Prosperous United States? g
is
unfortunate
that
in
hand.
truth of
The
a
the
few
editors
recognize
the
fact
that
a
sound and prosperous economy go hand
is
matter
that
any
governmental policy
that adversely affects the securities business merits real prominence
in the columns of the press. It is gratifying to observe that the editor
of the "Mi Sterling Gazette and Kentucky Courier" of Mi Sterling,
Ky., realizes this and this fact is
*
Corp.
Chronicle,) ;
>
.
crisis
It
Financial
1-1 IS
The
..Y'v
'
———:
:
■
>.
■
■■
a
square
which
has
deal.
In every
contronted
tins
Nation-,
going back to the Cali¬
fornia
earthquake,
there: has
never
been a more loyal section
of the United States than has Wall
Street.
hind
TODAY
the
States,
than
we
IS
President of
and
fellows
IT
that
can
is
4,500 compris¬
ing the membership of the New
the
and
Association
Firms:
-
"Our
Government
expects
important undertaking of the
in
a
lot
In
has
and
will
there
never
be
a
unable
to
understand
Street
Nation
and
—
its
the
than
has
operators.
worst
that
fronted this country
Wall
In this
has
con¬
since George
Washington crossed the Delaware
lot of 'New Dealers'
and rotten politicians at Washing¬
—Wall
ton and in different sections of the
chasers of War Bonds and Stamps
of any section of the country. It
just why
country
a
are
always attacking Wall
Street and its members.
The edi-
a
that
it
gets
rather than
lot
of
a
a
SQUARE
DExYL,
RAW DEAL from
a
parasites who
Wall Street, in
the opinion of this writer, is the
political
would
destroy it.
financial
tion of this Nation.
which
try
and
backbone
has
founda¬
Street
have been
and
one
its
and
of the
members
largest
its members have
pur¬
laid
never
'on the
being made upon it by a lot of
political parasites, many of whom
have done nothing and will do
nothing, for their country, is a
distinct
outrage
condemned
this
WHitehaU
"Responsibility for the
the
is
.
The '
front
this
in
United
States
.
by
Nation who
and
every
should
citizen
believes
in
a
of
DIRTY
FAIR
DEAL
this
DEAL,
as
en¬
from the
country, not - a
it has been get¬
ting from a lot of politicians who
be, have not yet learned that there
of is still some justice left in the
jus-f world."
oughly
war.
>
working
Would
facilities
ities
of
national
our
of the
use
secur¬
town
distributing organization.
'y "We must
measure
armed
our
less
no
forces
are
to
up
wide
Draft
successful
salesmen.
Very
with
consider
Financial
our
Spruce
of
out
Box S 3,
connection.
Chronicle,
Street,
New
25 '
York,
than
measuring
so
to theirs. The objectives which
up
must
we
consolidate
clear.
are
We-urge you,- as patriotic citizens,
to
a
maximum
certain
exertion
make
to
Available
that this campaign
outstanding
success
is the
which it must
Man
with
long experience in
securities
become
Geo, F, Hume! Is;
business
if Wilh Hicks & Price
'£ CHICAGO,. ILL.
has
—
become
l
Max T.
U.
:
George
F.
doing
Box
M
New
so
has
for
many years.
The
25,
Chronicle,
associated
con¬
and
.firm
own
25
Financial
Spruce
York, N. Y.
Alcock To
Street,
■
.
Manage New
A. M. Kidder
A.M.
order
At present
Kidder
&
DepS.
Co., members'
of the New York Stock Exchange
and other leading national
exn
changes,: have opened
bond
department in
a
municipal
Allen, proprietor of Max
• Miss.,
in
the
office at 1 Wall Street, New York
City.
K
been
S.
ducting
been
or
to
high
charge of
Thomas R. Alcock, at their main
T.; Allen
has
with
grade firm in trading
department.
(Special to The. Financial Chronicle)
desires
associated
Co.,
Hazelhurst,
commissioned
Navy
and
will
report
Mr.' Alcock
for
active duty at
Quonset Point, R. L,
on; Dec.
22.
He will close his
investment business for the dura¬
Ad'v :
was
formerly
has never been any
patriotic business place in
Bros.
Boston
and 1
prior thereto wai
of the municipal depart J
ment for Southgate & Co.
i
manager
WARREN BROS.
4j/2% Bonds due 1956
3s,
Series A Collateral
Series B Collateral Trust
5% Bonds due 1977
1949
Trust
4% s Feb. 1, 1956
5% Cum. Income 5s due Aug. 1, 1977
$2.50 Cumulative Class B Stock.
Chicago, Milwaukee, St. Paul
Bought
& Pacific
5s,
—
Sold
—-
Analysis
upon
Bought
Circular
Josephthal & Co.
1931
I
G.A.Saxion&Co., Inc.
II 70 PINE ST.,Teletyo?'NY
N. Y. WHitehaU 4-4.0701
-4070||
" "
"
"
Sold
-
Quoted
upon
request
2032
Seaboard Air Line
5s,
-
request
New Orleans Great Northarn
5s,
Class C Common Stock
Quoted
•
2000
l-rtOfl
Members New
120
Broadway, New York
REctor 2-5000
York Stock
Paine, Webber, Jackson & Curtis
ESTABLISHED
19
Members
New
York Stock Exchange and
Other Principal Exchanges
25 Broad Street, New York
Congress St., Boston
JLAFayette 4620
1879
"
Exchange
24
Federal Street, Boston
.
a
partner in Alcock, Hill & Co. of
confronted
Chicago & Alton
r'
Thor¬
change.
a
there
more
•
1-110
experienced,
exempt
tion. -.'v-
In every crisis
this coun¬
NY
dealer acquaintance.
Treasury,
•
titled to
make
to
Here
global
mittees of the 12 Federal Reserve
with Hicks &
people
New York
Teletype
Presently employed desires
through the Victory Fund Com¬
Wall Street.
Wall Street is
Security Dealers Ass'n..
4-2%8
Districts, is making full
been
opinion,
'
Trader
This is where
responsibility belongs.
our
Hummel
our
'
Security
brokers, investment bankers and
commercial banks.
loyal section of the country than
And, in
/V.
■ >
.
success
of
more
•
Broadway
campaign rests, very large¬
ly, upon the financial industry,
that is to say securities dealers,
sunshine
never:
■..
date.
to
storm, in sacrifice and in
prosperity there
-
war
United States.
are
entire
crisis
42
i
,
Commander-in-Chief. The attacks
"We
the
.Members N..Y.t
;
more
always. casting
financial dis¬
are
slurs at the greatest
trict in the world.
and
be¬
@ 43
.
combat, it is the most
single individual on Wall Street,
and, therefore, has no interest in
it except the interest of seeing
that
.
HUNTER & CO.
campaign, beginning Nov. 30, This
the largest
single borrowing
operation in our history. Next to
is
job' and today it is
100% back of this country and its
appearing
paper from time to time
such as the following one in the
Nov. 20 issue:-;,■
f. ■
in
Preferred
•
to
raise $9,000,000,000 in an intensive
the actual
99%
York Ice Machinery
'
i
_
;
@
1961
s,
50 shares
•'
'
down
editorials
4 Vt
;
j
of
^
tor of the 'Gazette' does not know
in
:
:
National Association of Securities
Dealers
'
North Shore Gas
York Stock Exchange, the Invest¬
ment
Bankers
Association,
the
Stock Exchange
subject
$10,000
V
list of
a
Price, 231 South La
it is a distinct insult to successful Salle
Street, members of the New
business men to continue an at¬ York
and
Chicago
Stock
Ex¬
tack upon them simply because
changes.- Mr. Hummel was for¬
they believe that this is still a merly in the unlisted stocks and
Nation where, when we sing .'My bonds
department of Lowell NieCountry,
'Tis
of
Thee,
Sweet buhr & Co., Inc., and prior thereto
Land of Liberty,' we can sing the was with
Rogers & Tracy, Inc.,
TRUTH. Wall Street, in the opin¬ where he specialized in unlisted
ion of this writer, is one of the
industrial stocks.
greatest things we have; in the
United
States,
and
without
it
there would be a sad day in the ; Max Allen Commissioned
reflected
We offer,
i
the United
about
say
who
100%
much;
branch offices
to our
'v:
following- communication
sent to
was
responsibility,
tice and
healthy "Wall Street" ancl
The
lo
DAYTON, OHIO —William M,
Phillips and Oliver Baughan have
become associated with the Day¬
ton
Bond Corp., Third National
Bank Building.
Mr* Phillips and
Mr. Baughan were formerly Pres¬
ident and Vice-President, respec¬
tively, of the Estate Acceptance
Corp.
v': T
& Common
Cities Service Co.
en
Group.
ers
:.
Cities Service
York Stock Exchange
Orleans, La.-Birmingham, Ala.
of the
With Dayton Bond
i
,*r-'
•'
St., New York, N. Y.
Direct wires
man,
E.
department' of
Co.; 209 South La
&
it
Hitchcock
2-8700
REctor
;
associated
Street, members of the New
changes,
Phone:
James
—
become
trading
Work' and
request
ILL.
has
the
Salle
120 Broadway, New York
WABD &۩.
CHICAGO,
Cruttenden
Westchester Fire
Timely suggestions mailed
Cruflenden Co. Dept.
Hitchcock
j
"
the Association of Stock Exchange
James Hitchcock In
INSURANCE
•>' >*■
NY 1-1557
H.
Association of Securities Dealers,
Inc.; John L. Clark, President of
INDUSTRIALS
•r.
J>4
:
'
Steiner, Rouse & Co
York Stock
ment
■'
O'Cara Coal Co., 5s, 1955
Dewar, Chairman of the National
1-672
' 2
Fi¬
Exchange; J. N.
Whipple, President of the Invest¬
NEW YORK
!
i
7-0100
of
Sehram,
New
and Other Principal Exchanges
BROADWAY
115
Telephone
NY 1-423
Industry
V'
•
Debardelaben 4s, 1957
Committee of the
on
Members
BROS.
KATZ
'.
Nov. 30 called on the
financial industry for its support
of the Treasury's December Vic¬
tory Loan drive for $9,000,000,000.
r
Montreal Lt., Ht., &
•
The National
...
r
-
Alabama Mills
Support To Bond Drive
Canadian Securities
Triumph Explosives
v'- Thursday, December 3, 1942
.
209 So. La Sails St., Chicago
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4130'
•Volume 156
and
COMMERCIAL
FINANCIAL CHRONICLE
"
Reg.
'
William
Elastic Stop Not
Office
Patent
8.
U.
Dana Company
B.
:
CORPORATION
Publishers
Spruce Street, New York
25
3-3341
BEeknian
We
interested in
are
Preferred Stock
Editor arid Publisher
D.
Published
twice
1942
.[every
week
a
Prospectus on request
issue)
J
f
&
i.
Chicago—In charge oi
Fred H. Gray, Western Representative,
.Field Building (Telephone State 0613).
London—Edwards & Smith, 1 Drapers4
Other, offices:
Spencer Trask & Co.
v
t
Monday)
statistical issue on
a
London, E.C.
Copyright
v
-
Reentered
i
.
New York, N. Y,
Boston, Mass.
WHitehall 4-4900
Dana>
B.
Y
.
8,
1879.
/
Subscriptions
.
e
Australia
and
$31.00
Africa,
the
of
We
are
pleased
»
!•
*
:
our
Inquiries
Bond
in
us
MEMBERS
NEW
&
doing
COMPANY
Stock
York
New
Bell
Exchange
NY
Teletype
&
Roosevelt
Weigold,; Incorpo¬
rated, 40 Wall Street, New York
City, announce the election of Ed¬
win. J. Cross as Vice-President.
Cross," who has been in the
municipal bond field for the past
15
years,
started his. business
Mr;
,
;
:
:
'
career,in the Trust Department
of Roosevelt & Son in 1924 and
was later promoted to themunicipal
department
of that firm,
which
under the direction of
was
Charles E. Weigold., When Roose-
',
velt
in
Mr.
1933,
in
business
always
a$
industrial
Co/s
Participations
left
bur
al¬
are
their
L. Most-"of,
market
the
in
!
companies
with
large
-
income revenue.
this
is
going
into
Government
bonds to help the war effort withy
of
purchases
course, :
'
of
bonds at attractive prices as a
quent alternative.
smaller houses are
staffs and partners go into
there
and
have -been
and
binations
local
Co.
,
as
our
the
.
.
and returned to the counties pro¬
Municipal and
Corporation Issues
t
Firm
The electors, by a
boom.
Bids
in
Made
American Funds
' State-collected
the
gasoline
their sev¬
The State Board
money
burden
tax
Specializing
Canadian
In
Bonds
&
Stocks
Seaboard Air Line
*
.j •;
5s,, 1931
v,; •;
•
.
1945
6s,
.
.
State's
administration's
Cons. Electric & Gas
Road
effort
to
bids
fair
to
6s,
succeed—is
5s,
ef¬
1958
ex¬
pressed by the passage of the con¬
J.F.Reilly&Co.
Members
York
New
71
Dealers
Security
Assn.
Broadway, New York, N. Y.
briefly:
'■/ Under
1962
So. Cities Utilities
accom¬
these ends—and which
plish
fort
for
possible from • the
taxpayers.
The present
agent of the various counties, ad4
ministering these funds at the di->
rection or request of the various
•
WH. 4-8980
Teletype N. Y. 1-142
as
above, the aims and practical re¬
sults; of which we shall review
was
County Boards of Commissioners*
This; method went, a long way to-f
great many investors
valorem
stitutional amendment referred to
Administration
CHARLES KING & CO.
61 Broadway, N. Y.
thereto, eliminate as much of the
ad
purposes
the fiscal
of
of
Portland, Me.
a
Administration
the State Board of
eral road debts.
some * com.
firms.—Whaples, - Viering &
believe
1-12C3
Securities
>
ratified a constitutional amendment pledging for
period of fifty years, 2 cents of the State 7 cents gasoline tax, to
the payment of Florida County Road and Road District bonded debts.
This
pledge- culminates more'f,than 13 years of diligent effort j present administration, under the
and trial and error, during which ! guidance of Florida's able Govtime attempts were made to sta¬ ernor Holland, realized the weak¬
bilize the heavy road debt situa¬ nesses of the old plan and deter¬
tion (and put it on a sound, pay¬ mined that if Florida was paying
able .basis.:: During this period of for. a good grpde* of credit, it
get it, and in addition
13 years,,the Legislature created should
from
'
We
:
of the State's most difficult problems,
-
service,
amalgamations
one
from the late lamented Florida
gasoline tax.
The purpose of re¬
turning, this money to the coun¬
ties; was so that they might pay
fre¬
of
Some
closing
over
ceeds.; from
good
/
NY
Canadian
a
local
\
-
Teletype
Vote of five to one,
keeps
for
in solving
the final step
There
also for
some
2-8970
West Coasts
people of Florida in the general election held Nov. 3rd took
The
a
issues
demand
insurance
ways
to East and
By H. G. CARRISON, Clyde C. Pierce Corp.
public utilities, so. that while much
money
is going into Government
bonds, there is a reasonably broad
The
private wires
To Road And Road District Issues
Com¬
the usual standards.
reasonable
a
HAnover
Florida Gas Tax Amendment Favorable
good
"local'?
has
so-called
our
and
to
retired from the se¬
Son
&
curity
Title
other
'sTrust
Broadway, New York, N. Y.
1
.
local market.
| Of Roosevelt-Weigold
Cooley &
—
territory
ance
is
j
Ctfs.
INC.
39
large and important
very
a
bank stocks and
Cross Elected V.-P.
Ctfs.
Co.
Offerings Wanted
se¬
stocks, and the demand for insur¬
up
1-2033
Co.
"
invest¬
these
Stocks'?
"Peace
business.
This
WHitehall 4-630J
St., N.Y.
good
COMPANIES
Newburger, Loeb & Co.
Members
one's
on
Direct
the securities of companies
as
market
40 Waif
return
are
well
pany.
PRUDENCE
Title
Mtge.
Ctfs.
Telephone Dearborn 0300—Teletype CG 35
curities of well established compaif
nies
MORTGAGE
;
209 South La Salle Street—Chicago
some
the present time,
at
ment
war
TITLE
[
of the Connecticut
Industrial Securities.
Yielding an
CITY
YORK
In
Co.
Members New York Security Dealers Assn.
recently in
BANK & TRUST COMPANIES
Invited
Mtge.
J. GOLDWflTER & CO
CHICAGO STOCK EXCHANGE
Discerning interest has been shown
by
&
all
Bank
NEW YORK STOCK EXCHANGE
excellent
issued
In
Complete Statistical Information
CRUTTENDEN 6- CO.
Hartford, Conn.
CERTIFICATES
and
Trading Department
fluctuations
MARKETS FOR
4-6551
Specialists
Lawyers
has become associated ivith
s
exchange, remittances for
foreign
subscriptions
and
advertise¬
ments must be made in New York funds.
ALL MORTGAGE
Are
Lawyers
FORMERLY WITH GOODBODY 6- CO.
In the rate of
Real Estate Bonds
WHitehall
REAL ESTATESECURITIES
that
to announce
MR. JAMES E. HITCHCOCK
year.
per
j
.•
States and
Dominion
Canada, $27.50 per year; South and
Central
America, Spaing ftjexico
and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
NOTE—On. account
Busi¬
•
Telephone:
of
;
Securities
LICHTENSTEIN,
STREET, NEW YORK
We
" t
Possessions $26.00 per year; in
•
it's
„
United
in
Obsolete
Liberty 7767
Teletype NY 1-1584
" r-'
i;second-class matter Feb¬
as
the
.
ruary
25, 1942, at the post' office at
New York, N. Y./under the Act of Mar.
<
In
Social Security Records
it's
SMITH,
JOHNSON,
BROWN, in that order! j
99 WALL
Members New York Stock Exchange
.
-111 Devonshire St.
Wall Street
40
Victory!
LICHTENSTEIN, I, I C HTENSTEIN, in that order!
25 Broad Street, New York
Teletype NY 1-5
\
/
v.
*
William
by
1942
Company.
the
ness
Telephone HAnover 2-4300
.
v
Gardens,
In
Quoted
*
Thurs-
day tgeneral news and advertising
witn
Sold
•
-1
*
•.
December 3,
Thursday,
>
Bought
Business 'Manager <
RIggs,
Nearer
HERE'S THE ORDER-
PREFERRED STOCKS
Common Stock
Seibert, President
William Dana
William
AND COMPANY
One Week
INDUSTRIAL
,
"
'
»licHTinsTfin
ojjerings of
High Grade
^
.
6% Convertible
'
Seibert,
D.
Herbert
*
1963
HAnover 2-4660
the resolution, the State
Bell
System
N.
Teletype,
Y.
1-248#
Board^of Administration has been
■j; Roosevelt and Mr. Weigold, ■ for- and
prospective
investors : are ward helping to re-establish .the created, as a constitutional body,
ymer partners in that firm, together
somewhat bewildered by the con¬ credit 'of Florida counties, espe¬ empowered to act at is own dis¬
with Mr.) Cross, formed > Roose1
flicting opinions of our newspaper cially-with' regard to roads. How? cretion, not requiring directive
velt & Weigold, Inc. to deal excolumnists, financial writers, econ¬ fever,-it was not enough, as there resolutions from County Boards
clusively in State and municipal
of Commissioners.
The Board of
A
Through Wire Service
*
omists, etc., but
'
'■
bonds.-.
'
difficult
available
Victory Fund Mgr.
f
Drive is
the
curities
marked
of
Manager
Fund
Victory
the
for
the
San
Antonio
money;
over
(and
was
gasoline tax
session. v The net
result'/.was;.-that the State from
tax
was
paying for a
we. meain
at- any
r.
we
the
think
se¬
and
in
.
Laird,
Douglas
Vice-President
Securities & Research
of National
could not rely,
& Co.
•
without hesitation,
]
Corporation, 120 Broadway, New
,
York
City,
is traveling on the
west coast and
•
dealers
in
California
weeks.
will be calling on
The
undersigned
long
ended and
with
and Texas for several
of
the
,
,
personally believe
office)
ST. LOUIS
Tljie
.
(Continued
announce
F.
a
of
deflation
has
for
some
time
v
/
bargains
in
issues.—J.
are
S.
McDowell, Dimond & Company,
New
York
Security
Dealers
Ass'n
Board of Trade BIdg.
Proadway
CHICAGO
DIgby 4-8640
Harrison 2075
Teletype CG 129
L. WRIGHT
We are pleased to announce that
SECURITIES
Mr. Leonard E. Gazan
Preferred Stocks
:
20
PINE
associated with
Bonds
us
STREET
NEW
YORK,
Telephone Whitehall 3-1223
Bell System
de¬
McDowell,
32
Teletype NY 1-832, 834
LESLIE
1942
some
currently
Members
Complete Statistical Information
Inquiries Invited
H. G. BRUNS & CO.
to
unquestionably less
today than
of the firm of
the dissolution
WATER WORKS
.
period of inflation-is
us'
KANSAS CITY
(Baum, Bernheimer Co.)
1969)
LEONARD E. GAZAN
November 30,
has become
cycle
on page
NEW YORK
come.—
Gilbert
Brooks,
asset
New pressed
He is due back in
I
Cash is
come.
an
own
(Murdoch, Dearth & White, Inc.)
indebtednesses.
trict bonded
L. E. GAZAN & CO.
Brooks & Co.
of
York about Jan, 2.
F.
Gilbert
Oregon,
Washington,
and
inflation is bound to
now
(our
■.
STRAUSS BROS.
The public interest;
is centered in post-war securities.)
Fixed
interest
bearing securities!
seem
to
be very high.
And the
The
those
have-been 4in
securities
local
fantastic
Laird On West Coast
all
general
CHICAGO
cents
.
good demand.
some
2
of gasoline tax, and will
administer sinking funds, coupon
and bond retirements, refundings,
pledge
1
firm.
the
from
derived
all
things
markets
will
show
a
grade of credit which it was not pertaining to the State's Road and
improvement.1 —- W.'yT:, receiving, because the bondholder Bridge, and Road and Bridge Dis¬
top),
Providence, R. I.
Our
furids
handle
will
to Administration
turned back
could be withdrawn by the Legis¬
of the 11th Federal Re| serve District. It is expected that
B. F. Pitman, Jr., who has spent
a substantial part of the past nine
swing of the pendulum will, come;
months
investigating
economic
with the result of a keen demand;
and financial conditions in Mexico
good common stocks as the,
and Central America, will again for
become active as the head of the debt at the end of the war will be
Region
that
the^cbpnties/ .from
lature
tO
;
real pledge given, and the
upon' the gas tax distribution.
company
Committee
was no
«an
Victory
the
after
...
Burns, Burns, Barron
leave of absence from
to act as Regional
is taking a
and
over
TEX.—Creston
the
:•
Bond
Funk, for the past nine months
President of Pitman & Co., Inc.,
SAN ANTONIO,
H.
in
is 4 still
There
C. H. Funk To Be
them
with
clarify the, situation;
plenty -of 5 courage
to
attempt
do not find it
we
talk
to
December
1, 1942
Teletype NY 1-1843
N.
Y.
CRAIGMYLE, PINNEY & CO.
Members
ONE
New
WALL
York Stock Exchange
ST.,
NEW
YORK
Telephone WHitehall 4-5290
'
1964
THE COMMERCIAL & FINANCIAL
CHRONICLE
PUBLIC
Thursday, December 3, 1942
UTILITY
Forty Wall Street Building
INDUSTRIAL
New York
.
RAILROAD
MUNICIPAL
City
Illustrated Analysis
.
If you contemplate making additions
send in particulars to the Editor
request
on
lication in this
BONDS
(Special
Seligman, Lubetkin & Co.
A-CALLYN^COMMNY
Members
CHICAGO
New York
Boston
Detroit
York
Security Dealers
New York
Telephone HAnover 2-2100
Teletype NY 1-592
Omaha
ILL.
f
Chronicle)
J.
—
has./ become
and
the past he was
G; Hauch &
an
,
connected
come
Russell
with
Thomas
Kemp & Co., 210 West Seventh St.
associated
(Special
to The
LOS
formerly with Hicks & Price
Winthrop, Mitchell & Co. In
was
personnel, please
your
■
with Dempsey-Detmer & Co., 135
South La Salle St.
Mr. Wheeler
Association
41 Broad Street
Philadelphia
Milwaukee
New
Financial
CHICAGO,
Wheeler
Incorporated
INCORPORATED
to The
to
of the Financial Chronicle for pub¬
column.
officer of Karl
Financial
Chronicle"!
ANGELES,
CALIF.—
Michael
C. Niccoli has
staff
Sutro
of
joined the
Co., Van Nuys
&
Building.
Mr. Niccoli was for¬
merly with Searl-Merrick Co.
Associates, Inc., in¬
vestment research.
NEWARK
(Special
•
•
(Special
to
The
Financial
Chronicle)
LOS
:
•
to
The
Financial
Chronicle)
ANGELES, CALIF.—Bev¬
-
New
KANSAS CITY, MO.—James O.
Bishop has been added to the
Jersey
staff
Prugh,; Combest & Land,
Inc., 1016 Baltimore Ave.
Municipal
BROADWAY MOTORS BUILDING CORP.
Bonds
(Special
LOS
(General Motors Building)
Rippel & Co.
An
Example of
18 Clinton St.,
Newark, N. J.
MArket
New
York
Underpriced Real Estate Security
an
3-3430
Phone—REctor
2-438S
ST. LOUIS
The
following brief history gives
the facts:
The
Stjj{
original $6,000,000 mort¬
gage had been reduced by serial
maturities to $4,764,500 when the
property was reorganized in 1936.
Co.
4
SAINT LOUIS
509 OLIVE ST.
Bell
System
In
Exchange
obligation for the First
amusing
ad¬
vertisements which B. S. Lichten¬
stein &
Company, 99 Wall Street,
York
City, specialists in
New
obsolete
securities,
have
been
icle"
since
1939
hand
corner
page)
are
in
(on
the
of
upper
the
the subject of
an
the current issue of
third
article
"Printer's
Ink," which states:
An
advertising
on
a
for
par
nurturing.
has
campaign
B.
Just such
become
S.
Lichtenstein
Street
and
dogs"
securities
Stock
to
—
of
in
1939,
"cats
and
mem¬
manner
ments
credits
the
campaign, begun
the unconventional
which
in
were
the
handled.
advertise¬
His
inser¬
tions in the "Commercial and Fi¬
nancial
Chronicle,"
medium
for
follow a
the campaign, used to
formal, extremely simple pattern.
However, the traditional way
never
appealed to Mr. Lichten¬
stein
when
so
per
annum
$100,000
of
bonds.
Provision
made for 60% of any remain¬
surplus
for
income
additional
to
interest
be
used
and
sink¬
ing fund.
he
approached
Co., advertising
expressed
his
own
income
interest
from
frown
on
relative
such
concerns
lack
of
ruary, 1940, 1941 and 1942.
Sink¬
ing funds have been available
For
as
V
1937
"
"
1938-
131,431.65
1939-
115.637.45
Flip
■
31, 1941 balance sheet
of the corporation shows that
$1,120,000 bonds had been purchased
and retired reducing the issue to
$3,644,500 and that $59,099.31 re¬
in the
the
Trustee
help rather
they
the
easiest to do because they have to
be
turned
at
the
out
same
are
not
voluminously and
time,
with
1938-2.09
N
"
1940-2.54
"
1941-2.62
for
purchases,
the
sinking
fluctuation
marketwise since 1937 has shown
spread
from
in
low
of
44
to
a
At the current market
the
low
current
a
a
50's, the bonds
yield of approxi¬
on
5% annual
interest payments which
are
evi¬
dent) and through the fairly large
sinking
funds
available
which
will
be
increased
tion
in
ground
by the
reduc¬
rent, more than
average appreciation possibilities.
cated
Broadway,
MARKETS IN
REAL ESTATE
SECURITIES
Eighth
*
*
*
SHASKAN & CO.
Members New York Stock Exchange
40 EXCHANGE
Bell
PL.,N. Y.
variety.
LOS
insertion
would
conventional
be
lots
less
son
awful
headache
some¬
times," asserts Mr. Lichtenstein,
"trying to think of new, humor¬
eye-catching gags.
On the
whole we've been pretty success¬
ful Aous,
*
.
.
of
been
Bogardus,
■'
to The
Financial
DIGBY 4-4950
Teletype NY 1-953
John J. Hess In Army
CALIF.
Rand
N.C.>—Joseph
Mr. Wood
Pinehurst, N. C,,
&
Flagg
was
and
W.
formerly
was
manager for Post
Thomson
Mr. Hud¬
previously with E. F.
Co. and Floyd A. Allen
-
SAN
H. S.
&
Mc-
to The Financial
to
The
Financial
Hynes
have
and
been
Harold
added
H. R. Baker &
SAN
Chronicle)
ANGELES,
CALIF.—
Archer, formerly with
Cavanaugh, Morgan & Co., has be¬
Robert
P.
Holds Peak In Prime
■
CALIF.—
Clegg, S. J. Flanery, Hubert
(Special
(Special
LOS
Chronicle)
FRANCISCO,
Robinson
the
to The
Financial
A.
staff
of
Chronicle)
FRANCISCO,
Raymond
Fuller
Witter
Dean
W.
to
Co., Russ Building.
& Co.
&
CALIF.—
is
with
now
Co.,
45
Mont¬
gomery St.
Corporate Bond Prices
Has Now Been Reached
.
their underlying policy was dictated
by the opinion that the high
prices for long-term high grade bonds would be
maintained, go on to
say that they now are "taking this occasion to reverse this
position in
and
to
long-range
far
so
it applies to long-term prime corporate bonds
as
suggest that
a
program
of£-
shortening maturities now for the
first
time
seems
indicated, to¬
have been obsessed with
gether with a program of switch¬
ing from corporates into govern¬
at almost
ments.
We
thinking in terms
are
of the next several years and not
at all of the immediate future.
"We
base
this
change in view
in part upon the long-range im¬
plications of the recent Congres¬
sional
*
elections.
*
*
over
a
considerable
period of years we
have expressed the view that easy
money has not been primarily at¬
to
as
such
surface
mani¬
gold movements and
government policy, but has been
primarily attributable to the psy¬
chology of fear which for ten
years has pervaded this country
Vir¬
tually all investors have for years
primarily influenced by two
private
and
institutional,
a
ruling
passion to preserve their principal
any sacrifice of income
and to avoid any program involv¬
ing
the
come
purchase
of
higher
in¬
in return for risk."
Continuing, the firm
says that
the November elections "were
no
doubt largely attributable to an
underlying
political
from
economic
"that
such
trend
fundamental
a
away
radicalism,"
and
trend
had probably been under
way in
this country since
1938, that the
war issue had obscured
it in 1940,
but that it was based on
powerful
forces which would in the future
make themselves felt even
more
emphatically."
elections, the
As
result of the
country
doubt become
of this trend.
a
will
increasingly
no
aware
It would be foolish
(a) Fear of political radi¬ to argue that we will now have
calism, which included fear of done with anti-business legisla¬
punitive taxation, profit confisca¬ tion, but nevertheless the
spear¬
tion and, in general, government head
of
this
deflationary force
anti-business policy, and (b) fear has been
blunted, and this fact
of disastrous war, which most of should
gradually become apparent.
the
has
time
for
last
the
ten
years
been
spreading throughout
world, and has finally reached
own
shores.
fears created
force
served
Captain Hess is stationed
both
fears:
which
J.
Mason, Oakland, Calif.
(Special
—
It has been
our
a
great deflationary
years
has ef¬
for
Hess, partner in Hess fectively offset the
inflationary
&
Butchart, American
Bank American monetary position, re¬
sulted in a precarious balance be¬
Building, Portland, Ore., is now
tween inflation and deflation, and
serving as a captain in the U. S.
at Fort
bury St.
.
repeated analysis that these two
Army.
Co.,
Chronicle)
ANGELES,
Hutton &
the
John
an
staff
Co., 215 West Sixth St.
our
the
reason
associated
&
formerly
Co., Inc., and I. H.
RALEIGH,
been
Street and 58th
this
the
has
and also most of the world.
entire block bounded by
Dain
Miss Doyle was
Wood has become connected with
J. S. Bache & Co., 126 South Salis¬
Robert W. Hudson has become af-f
filiated with William H. Jones &
festations
purchasing and retirement
on
Tower.*
MINN.—Nella
become
Overman, Inc.
CALIF.—
/
tributable
TRADING
has
M.
with Blyth &
Banning, 629 So. Spring
use
The property
consists of the
leasehold estate and 25-story of¬
fice building (erected in
1926) lo¬
J.
November, Homer & Co., 40 Exchange Place,
New York City, after
stressing the fact that for the past ten years
^:.y-
Due to various times of
fund
Doyle
with
In their bulletin for
"
1939-2.36
M.
Chronicle)
Kauffman
y
^
1937__1.82 times
■
Financial
been
of additional bonds.
"It's
Lichtenstein's advertise¬
appear,
the trus¬
interest, has
follows:
as
to
■
Biscayne
Company.
ANGELES,
L.
(Special
;r.r*'v :' 'V■' I
Indenture Provisions
fixed
mately 10% (based
'"Ground Rent increased $20,000
1/31/41.
mained with
held by
that
hindrance.
as
earned
level
124,896.34*
on
be
on
4%
offer
131.068.46
-
1941
trouble.
ments
Based
high of 74.
$130,714.84
1940
"
to
turity.
the
a
"
feels this criticism is
a
mortgaged leasehold
subordinate,
General
Corporation
will
pur¬
cause
to The
Maurice
Street.
Corporation,
(Special to The Financial Chronicle)
(Special
LOS
an
tee, the leasehold estate intact for
the benefit of-the bonds until ma¬
paid as follows: V? of 1%
February, 1939 and 1% in Feb¬
in
For
than
at
dignity.
as
a
or
the Bankamerica
be
been
the campaign is more than
accomplishing
its
purpose,
he
But,
under lease
the
shall
has
Avenue, 57th
Street, New York
agency,
he
City. The building of steel frame,
ideas to them, and together they
fireproof
construction,
contains
worked out the strategy.
stores, offices
and
showrooms,
He admits quite frankly that
having a net rentable area of
the
flippant,
often
nonsensical 473,435 square feet.
The 1942pattern, used in his advertise¬ 1943 assessed valuation totals
$6,ments, hbs brought adverse criti¬ 975,000. Ground rent is now
$260,Frank Kiernan &
cism
floors
Chronicle)
with II. R. Baker
now
Foster
Kinnon.
-
.
Additional
and
the
to
4%
of the next
use
The Dec.
Lichtenstein
success
at
that
bers.
Mr.
rei
ing
Co., Wall
Exchange
of the
was
with
specialists in inactive
unlisted
the
retirement
campaign
a
basis
par
sinking fund for purchase and
a
is worth
institution
an
interest
follows:
increases business 300%
which
of income after fixed interest for
running in the "Financial Chron¬
right
13
Financial
Chronicle)
affiliated with United
now
Securities
Co., Bank of America Building.
Mr.
Horan was
previously with
&
Financial
FLA.—Clyde
Building.
&
Corporation
chase the fee and thereafter hold
and
and
have
Motors
changed
fixed
Magazine Blurb
unusual
General
improves
Motors
organization, which provided for
Lichienslein's Ads
The
obviously
the sinking fund).
Leasehold Fixed and Cumulative
Income 4-6's due Feb. 1, 1948, ex¬
pursuant to the terms
Get
1945
reorganization,
Motors annual rental of approximately
Realty Corp. acquired the equity $750,000 until April 30, 1948.
A
in the leasehold
estate, securing covenant of the lease 'provides
the
that
in the event of foreclosure
Broadway Motors Building
Corp. first leasehold 6's and as¬ under any mortgage on the fee, to
Teletype—SL SO
Louis Stock
in
rent
Frost is
Co., has joined the
to The
C. Horah is
Frost
to The
MIAMI,
ANGELES, CALIF.—Willis
added
$210,000 per annum to Jan.
1, 1962. (This reduction of ground
the
sumed the
Members St.
000 to
LOS
previously
Co., is now
&
MINNEAPOLIS,
(Special
underpriced security in the real estate field are
the present outstanding leasehold
mortgage bonds on the General
Motors Building in New York City. With a
backlog of rental income
from the General Motors Corporation lease for half the
space in the
building and with interest being paid at 5% plus sinking funds aver¬
aging about $125,000 a year for the last five-year period for mortgage
reduction, it would seem that the^
facts
relating to this property 000 per annum until Oct. 31, 1945,
warrant
higher
market
levels. at which time it is reduced $50,an
McKannon,
Brashears
(Special
Chronicle)
staff of Adams-Fastnow Company,
215 West Seventh St.
1891
Typical of
Financial
C.
G.
with Witherspoon & Co., Inc., 215
West Seventh St.
ANGELES,
CALIF.—
Godfrey, formerly with
G. Brashears &
First Leasehold 4-6's, 1948
Established
to The
,
Charle K.
•
J. S.
erly
with
of
to
maintain interest rates
at very low levels.
the
great
majority
For ten years
of
investors,
"The
above, i.
other
fear
mentioned
fear of War, remains,
and will
continue, with its con¬
comitant of restrictive war meas¬
ures,
for some time to come.
Nevertheless if, in the next year
e.,
or
two, definite signs of decisive
military victory come to hand and
the end of
the war comes in
sight
and, with it, a prospect of trade
expansion, then the other prin¬
cipal
source
fade.
Thus
of fear will likewise
we
(Continued
argue
on
that while
page
1972)
Number 4130
Volume 156
NSTA Publicity And
J
Membership Committees
Committees of the
Membership of the Publicity and Membership
,
Seaboard Air Line 5s, 1931
Association, as appointed by Wm. Perry
Newman, Brown & Co., President of the Association, has
National Security" Traders
Brown,
1965
THE COMMERCIAL & FINANCIAL CHRONICLE
v
just been announced.
v
.
Bonds and Certificates
.
Saunders,
Dominion Securities Corp., New York City, Chairman; Richard F.
Abbe, Jr., Van Tuyl & Abbe, New York City; Oliver B. Scott, Wyeth
Publicity Committee are: Walter F.
of the
Members
Aldred Investment Trust
4*/2S, 1967
Company, 5s, 1959
Canadian Pac. Rwy .(Various Issues)
International Hydro-Elec. 6s, 1944
Mont. Lt., Ht. & Pwr. 3y2s All Issues
Brown
PFLUGFELDER, BAMPTON & RUST
York
>.Membert New
.
61
Stock Exchange
New York
Broadway
Bell Teletype—NY 1-310
Telephone—DIgby 4-4933
RAILROAD
HART SMITH & CO.
52
SECURITIES
REORGANIZATION
WILLIAM ST., N.
Bell
HAnovcr 2-0980
Y.
Teletype
New York
NY
1-395
Montreal
Toronto
Reorganization
Progress and Earnings
Bulletin
The speculative community received one of its most severe shocks
'last week when a surprise move was made to put the Alton into bank¬
ruptcy under Section 77. For ten years interest payments on the only
outstanding boiki issue (Chicago & Alton Refunding 3s) have at best
been erratic, with nothing at all paid between April, 1938, and Janu¬
ary,- 1940.
Nevertheless, throughout that whole period no attempt
was
made to put the company<§
:
}
Richard
Abbe
P.
.
.
■
Ora
M.
Goshia
Oliver
Pergruson
through
the
tion that
was
judicial reorganiza¬
obviously called for..
Apparently ;
security
.
contentto
■were;
carry
holders
through
SEABOARD AIR LINE
RAILWAY COMPANY
Available
AH
Issues
this
at
consideration,
any
'
NEW YORK
Chicago, Rock Island
event, and that the expense of
action
court
could
be
& Pacific R. R. Co.
avoided.
(Also, in bankruptcy payments of
(interest on the;' old bonds would
be sub j ect
to-court approval, and
(might be- less liberal .than if sub-
'management. ".Supporting the
John
Walter
Alfred N. Plumley
Hecht
C.
Saunders
"
that; freedom,
ment of earnings;
1
-
,
Under- this
EROY A. STRASBUR6ER & GO.
1
i
"
i
Minn. & St.
Minneapolis
Minneapolis
Minneapolis
Minneapolis
and " a; capital
Iowa
revenues.
Iowa
'
jdojwn by the. ICC in formulating
(reorganizations under: Section - 77,
1 '
land effectively put the bonds on a
i
!sttaight
The parent
'company, Baltimore & Ohio, was
also a party to the agreement.
P.
Jerome
Sidney Spritz
Tegeler
The
income basis.
one
weakness in the agree¬
ment, from the point of view of
Angeles, Calif.; Sidney D. Spritz, Ballinger & Co.; Alfred the bondholders, was the fact that
it could be terminated at any time
Plumley, First National Bank & Trust Co., Minneapolis.'
<:v '
Membership Committee is made up of: John C. Hecht, Butler- under various conditions, includ¬
Huff & Co., Los Angeles, Chairman; W. Perry MacPherson, Walker, ing merely 30 days' notice (with¬
Austin & Waggener, Dallas, Tex.; Paul Frederick, Commerce Upion out cause) by Baltimore & Ohio
Bank, Nashville, Tenn.; Mrs. Ora M. Ferguson, Merrill Lynch, Pierce, or the chairman of either group of
bondholders. Nevertheless, this
Fenner & Beane, Louisville, Ky.; Oliver Goshia, Collin, Norton &
Co., Toledo, Ohio; J. F. Tegeler, Dempsey-Tegeler & Co.,- St. potential weakness was not given
any great weight.
As no bank¬
Louis, Mo. "
;;;
;;V;v;v .-.v
ruptcy attempt had been .made
& Co., Los
,
_
period of years .when inter¬
oyer a
Leonard Gazan With H i est was in default, there was con¬
Pringle Joins
danger of such
action: now that,-a: definite., agree?
H« G^ Bruns & Go; j rhent had been reached and with
£;, :E, F. Hntton & Go.
Edw.
sidered to be little
v
(Special
'
FRANCISCO,
SAN
Edward
O.
associated
1
The Financial Chronicle)
to
CALIF
Leonard
160 Montgomery Street. Mr.
Pringle was formerly a partner
in Eastland, Douglass & Co. and
Co.,
its
Eastland &
predecessor firm,
Co.
"
.
/
;
.
E.
Gazan
—
Pringle has become
with E. F. Hutton &
associated
H.
with
has
become
G., Bruns,&
Pine Street, New York
City, Mr. Gazan has been a part¬
ner of the dissolved firm of L. E,
Co.,
20
Gazan & Co.
In his new connec¬
tion, Mr. Gazan will continue to
specialize in the issues with which
he has long been
identified.
Stanley M. Weaver Joins
Tolischus On War
Merrill Lynch Staff
Tolischus, formerly New
York
"Times"
correspondent
Germany and Japan,
pf
at
the
to
The
DETROIT,
will be guest
speaker
and
honor
(Special
in
Weaver
has
;
and
earnings,
at
war-
MICH.—Stanley M.
become
associated
declared valueless,; thereby estab¬
lishing a tax loss for the parent
company.
Under the 1942 tax law
believed
is
it
that
such
a
loss
Lynch, Pierce, Fen¬
lar
operating profits of the parent
At first glance
that
on
the
action
holders
of
has
the
little
effect
Refunding
3s.
tentative reorganization plan
filed at the same time as the peti¬
The
the claim to be met in new Income
the
4s and half in new common.
of his talk
Bankers
Club.
.
\
Buhl Building. Mr.
Weaver was formerly with Amer¬
ican Industries Corporation
and
ner
&
,
& Beane,
of
trading department for Alison
Co.
that bondholders will
the income benefits of
high earnings during a consider¬
able part of the trusteeship, only
to see the trusteeship terminated
possibility
Central
5s
1938
Central 4s
1951
& Fort Dodge
in
reap
a
period of declining railroad
4s
New
Wall Street
Bell Teletype NY
York,
1-81)7
verse
There are, however, two ad¬
factory from the point of
view
of
the
bondholder.
tax burden
will be increased
materially
after
reorganization.
Half of the claim of the old bond¬
For
one
thing, the
the
company's
will be represented by
stock which is subor¬
to -income taxes.
Only
against
earnings
common
dinated
portion of income represent¬
ed by the 50% in new Income
bonds will be free from taxes.
The other blow to bondholders is
to be found in the time element.
It is true that the simple nature
presented a slate of officers to the
members.
Voting will take place
at
the
annual meeting
of the
club this month.
President,
the
capital structure and the
Baltimore & Ohio will
that
fact
Nominees were:
Walter
Schmidt,
A.
Schmidt, Poole & Co., to succeed
Arthur
S.
Burgess
of
Biddle,
Whelen &
Co.
Vice-President, Alfred K. Hun^ter, Yarnall & Co.
;;;;V
Secretary, Henry D. Boenning,
that
of
Officers
Slate Of
PHILADELPHIA,
PA. — The
Nominating
Committee
of the
Bond Club of Philadelphia has
of the company
holders
a
Bond Club Of Phila.
N. Y.
to all of the earnings of the prop¬
erty.
be
which to
participate. With these considera¬
tions it is generally conceded that1
the bonds are lacking in specula¬
tive appeal even after their recent
sharp decline.
■ ■ ■ ' ■
'*
Incorporated
63
would
1935
Frederic H. Hatch & Co.
.
there
when
minimum of earnings in
Boenning & Co.
Treasurer,
Eugene T. Arnold,
Co., Inc.
Harriman Ripley &
Jas. Yates, Jr., Now
•
With Hill Brothers
court
tion
in
of the
ers
of
bankruptcy,
new
invite inquiries
blocks or odd lots of
brokers
on
we
HIGHEST GRADE RAILS
We also maintain net markets in
bonds,
with
bondholders will still be
partner in Gatch & Co., where
he
was
in charge
of the New
York Stock Exchange department.
a
Prior thereto he was
Manager of
department for Fran¬
& Co., with which he was
the trading
cis Bro.
connected for many years.
1950
SEABOARD AIR LINE
Consol. 6s/45. Bonds
& Ctfs.
SEABOARD AIR LINE
5s/31. Actuals &
Ctfs.
half of
The
entitled
Defaulted RR. Bond Index
The defaulted railroad
of
dex
allocates all
securities to the hold¬
these
Mr. Yates was formerly
changes.
As
appear
prior thereto he was Manager
be
Com., W.I.
Louis New 2nd 4s, W.I.
& St. Louis 6s 1932
& St. Louis 5s 1934
& St. Louis 4s 1949
& St. Louis 5s 1962
Moines
Des
Louis New
1st 4s,
it would
will be "Our Enemies."
The luncheon will-be held at the
the
to
any,
There is obviously a strong
come.
traffic
SEABOARD AIR LINE
company.
with
York
if
participation in the ex¬
panded earnings for some time to
.
Bond Club of
held Dec. 16,
Albert H. Gordon, president of
the club, announced. The subject
of
luncheon
New
Merrill
Financial Chronicle)
at least.
year
presumably not attempt to protect
its
old equity interest through
(Special to The Financial Chronicle) i •.»•1
appeals should expedite pro¬
ST.
LOUIS, MO. —James A.
swollen
levels.
The
plan was ceedings. Nevertheless, the mere
Yates,
Jr., has become associated
terminated by* Baltimore & Ohio. mechanics
of putting the plan
with
Hill
Brothers,
Security
The only rational explanation for
through (hearings will have to be
Building, members of the New
the move at this time appears to
held, ballot taken, etc;, in any York and St. Louis Stock Ex¬
be a desire to have the old stock
traffic
could be applied against the regu¬
NY Bond Club To Hear
Otto D.
i
St.
&
lowed along the general lines set
V
YORK
(in reorganization)
/agreement;; there
{interest on the Chicago .& Alton
(Refunding 3s. The agreement fol¬
NEW
Teletype: NY 1-2050
MINNEAPOLIS &
be deducted .from earn¬
inj
ings,
the leased line rentals, funds
or establishment of. an adequate
[After these deductions the balance
of I income was to be ( applied to
(payment of overdue and current
STREET,
ST. LOUIS RAILROAD
Minn.
gross
a
During this period payment of
any interest will naturally be de¬
pendent on court approval.
It
therefore seems doubtful if bond¬
not
1
c
WALL
WHitehall 3-3450
|W(ere; to.
working balance,'
(fund of 2V2%■ of
than
material
gen¬
from
bankruptcy - proceedings1, would
continue' indefinitely,
the com¬
pany entered an agreement with
two institutional groups of bond¬
holders a short time ago provid¬
ing a formula for the disburse¬
eral; belief
event) will presumably take more
holders will receive much,
•
jject only to the discretion, of the
Sold ■—Quoted
72 WALL STREET
time, of all issues of
a cut in the capitalization
the. theory that any available
earnings would be passed along to
holders of the Refunding bonds in
Request
—
Van Tuyl & Abbe
We recommend dealers'
;without
ion
on
Bought
l.h.roihchild &
co.
City,
specialists in rails
11 wall street
HAnover 2-9175
Rust,
n.y.c.
Tele. NY 1-1293
for
Pflugfelder,
61
Broadway,
bond in¬
Bampton
New
&
York
shows the following range
Jan.
1,
1939, to
44; low—14%j.Dec. 2
date:
high—
price—39%.
THE COMMERCIAL & FINANCIAL CHRONICLE
1966
pected.
Earlier dispatches from
Washington had suggested that an
official 'pronouncement might be
Fireman's Fund Ins.
New
Bank and
Jersey Insurance
Insurance
deposit-capital
replace the time-honored
10 for 1.
Stocks
the
that
fact
ble.
Furthermore,
it
Laird, Bissell & Meeds
Members
and
York
New
other
Stock
leading
Exchange
120
exchanges
New
York
BROADWAY,
ment
CITY
Telephone: BArclay 7-3500
1
WALL ST.
Telephone
NEW YORK
DIgby
Bell
CL.
4-2525
A.
Teletype—NY
this
at
Exchange
Stock
NEW YORK
any
would
little short of absurd to
1-1248-49
Oibbs, Manager Trading Department)
never
time
with
come
180 MADISON AVE.
Preferred Dividend No. 147
Common Dividend No. 131
be
out
quarterly dividend' of i'H
A
(1 / % )
repealing something which
actually existed in the first
on
place. Although usually regarded
as a rough yardstick of Conserva¬
dends
holders of
mon
banking practice in the past,
a
10 to
1
deposit-capital figure
at no time enjoyed the status ,of
a
full-fledged regulation or re¬
As
r -.Vi
matter of
a
,
PREFERRED STOCK
1942rand
The
regular quarterly dividend for
the current quarter ot $1.25 per share,'
payable January 1, 1943 to holders oi
Stock have been declared. Both divi¬
The
arc
■
stock
payable January-1, 1943: to
record December; 10, 1942:.
transfer books. ■will, remain
-
record
j. P. Treai>\vell/Jr.
PREFERRED STOCK
The
regular quarterly dividend for
the ciirreht quarter of $1.75
per share;
payable January 1, 1943 to holders of
•
plain fact,.hun¬
dreds of banks haven't been with¬
in
a
This Week
!
Bank Stocks
—
reasonable
10
ratio
for
Outside
of
for
common
-The
,
big
these
days,
banks
and
news
from
their
in
banking circles last week came, as is usual
Washington.
The matter of easing the way for
customers
to
take
ever-increasing amounts of
on
of
land
Board
of Governors
of
the
Federal Reserve
lowing statement of policy:
i
"The Comptroller of the Cur¬
rency, the Federal Deposit Insur¬
ance
Corporation, the Board of
.
Governors of the Federal Reserve
System
and
the
executive
System issued the fol¬
—
—
—
scribers
relying
upon
anticipated
their
capital
a
Preferred
subscriptions by temporary bor¬
rowings from banks.
Such loans
deposits there
and
;
andsurplus
conservative
should
on
.
Preferred
the
Capital
Stock of. this, Company-of. 81.75 per.
on account of
accumulated divi¬
.-
has Been
cember
;
declared payable
19-42,
22,
the
to
ness
on
December 9,
books
Transfer
Checks
re¬
will
in
'1. There will be
examination
deterrents
no
vestments
Government
securities
of
availing
privilege of
temporarily borrowing from or
selling Treasury bills to the Fed¬
all
eral
types,,
except
those • securities
made
specifically ineligible for
bank investment by the terms of
Reserve
individual
Banks
when
.
The
financing,
the
neces¬
restore their required
positions.'"'
'
serve
".'2. In connection with Govern¬
ment
of
sary to
their issue.
<
and loans and
themselves-
supervisory
policy to investments by banks in
or
more-
sub-
above
general
originally
.
statement
in
its
rumored
re¬
is
much
terms
—
and
than'
the close of business Decern-
at
Ten
years ago,
the bank
about 5
were
or
Trust Company on
,
to
<
Vice-Pres. &
November 25, 1942
Secretary
■
E. I. du Pont de Nemouri
& Company
THE ATLANTIC REFINING CO.
Wilmington, Delaware: November 16, 1942
a
determining
factor
is
are
its
ex¬
Under
(Continued
on
page
The Board of. Directors has declared this day a
dividend of $1.12J4 a share on the outstanding
Preferred .Slock, payable January 25, 1943, to
of
record
at
business
the close of
January 8. 1943: also 81.00 a share, as tha
"year-end" dividend for 1942, on the outstand¬
ing Common Stock, payable December 14, 1942,
to stockholders of record at. the close of business
on
a
jone dollar ($1)
assets.
share
per
declared
was
November 23, 1942,
on
on
the Cumulative Preferred Stock
iConvertible 4% Series A of the Com¬
largely li¬
our
27
stockholders
quid and non-speculative, the de¬
posit situation may be purely
academic.
NUMBER
meeting of the Board of Directors
held November 30,1942, a dividend of
.bank and that the
assets
PREFERRED
DIVIDEND
At
has little to do with the
bank's
Scc'y.
a
soundness of
a
(
December 1, 1942
amining authorities alike, that the
of deposits in relation to
If
|
share, payable
John D. Finn
amount
capital
1
>
V!
-
JOHN A. LARK IN,(
Hankers
December 21, 1942.
6
million dollars.
swelled
-
ber 17, 1942.
closed.
be
not
'
servoir).
7
•
.
,
December 31, 1942 to holders of rec- >•
at the close of business Decern-
payable
pany,
February 1, 1943,
of record at the close of
business January 5, 1943. Checks will
be mailed."
.1971)
W, F. RASKOB, Secretary
to
stockholders
present
w
NOTICE
November 30, 1942
ELECTRIC STORAGE BATTERY CO.
THE
The Directors have
*
plus of the Company a final
dividend for the year 1942
Secretary
.
declared
Sur¬
the Accumulated
from
M„ O'CONNOR
,
:
•
,
FINANCIAL
'
-
ord
v
"
record
A dividend of 506 per
19-12.,
mailed by the
will be
quitrter
COMMON STOCK
of
record of said stock at the close of busi¬
,
j
,
De¬
holders
i
of'$1.75 pershare,
current
ber 17, 1942.
.share',
dends
;
regular'quarterly dividend for
payable January .1,1943 to Folders of
"
'
% SECOND PREFERRED STOCK
the
dividend
A
40
or
Today they have
grand total of $40,of
Supervisors
of State Banks amortization basis fully repayable, 000,000 and, according to present
make the following statement of within periods not exceeding six
indications, may easily jump to
their examination and supervisory | months,
50, 60 or heaven-only-knows how
'3. Banks will not be criticized many millions.
policy with special reference to
•
.1
investments
in
and
loans
for utilizing their idle funds as
Of course it is generally- recog¬
upon
Government securities:
far as possible in making such in¬ nized,
by bankers and the,exr
mittee of the National Association
7
The
Dividend No. 138
de¬
carry
(population around
comfortable
ber 17, 1942.
new YORK,- n. y.
30,000).
The total banking capital of the
community amounts to about $1,000,000 (in normal times, a very
>
income may wish to augment their
will not be subject to criticism but
be
on
a
short-term
or
com¬
to
;
the close of business Decem¬
at
r
'
Take for example'/the-case
town in the so-called Hinterf
Government
bonds was given official recognition—and attention.
meeting in the office of Chairman Marriner S. Eccles, the
banks
record
Street
30 Church
many
the
funds.
After
a
many,
posits in the amount of 30
times
American Locomotive Company
hailing distance- oi
larger
centers, it is not at all un¬
money
By H. A. LEGGETT
1
to
years.
;■
1% CUMULATIVE SERIES PRIOR
'
Secretary
;
-
the close of business Decern-
at
her 17, 1942.
.
.
November 25,: 1942
,
5% CUMULATIVE SERIES PRIOR
the Preferred Stuck for the
quarter ending December 31.
NEW YORK, N. Y.
•
THE
Boardthe
of Directors
this day
declared
following has
dividends:
for share
a1dividend of I'd 9 for share on the Com¬
tive
quirement.
CORPORATION OF AMERICA
Company
announces
an
NOTICES
nwisi:
Bank Note
attempt to fix a definite ratio, un¬
der present conditions, would be
manifestly unwise, if not impossi¬
Unlisted Issues
DIVIDEND
American
Such discussions appar¬
ignored
ently
Inquiries invited in all
Members
DIVIDEND NOTICES
made about a new
ratio to
Northern Insurance
Thursday, December 3, 1942
'
of Fifty Cents ($0.50)
per
Common Stock, payable De¬
1942, to Stockholders of record
at the close of business on December 2, 1 J4«.
Checks will be mailed. .
A ; , Vy.vVo ,
share
GUARANTY TRUST COMPANY OF NEW YORK
'
New
•„
i.. The
Board
of
quarterly
dividend
York,
December
Directors
of
has
Three
2,
1942.
declared
Per
Cent,
a
on
Capital Stock of this
Company for
the
quarter ending December 31. 1942, payable on
January
2,
1943,
to
December
11.
1942.
MATTHEW
IN VITATION
stockholders
MURRAY,
T.
of
JR.,
Secretary and Treasurer,
H. C. Allan,
the
Great Northern Railway Company
the
on.
cember 22,
Philadelphia, November 20,1042.
record
Secretary.
FOB TENDINIS
A. HOLLANDER & SON,
Common
Beneficial
To the Holders
General
of Great Northern Railway Company
o>oc:c
Industrial Loan
Mortgage 4% Convertible Bonds, due July 1, 1946,
4.
of
Checks
;
;
A yeiir-cnd bonus dividend of
25c per share on the Common
beetr declared payable January
to stockliclders cf record at the
jiao
1943,
close
Corporation
Series G and II:
business
will
ALBERT
Newark,
DIVIDEND NOTICE
.Railway Company hereby invites j tenders on or prior
of its General Mortgage 4%
Bonds, due July 1, 1946, Series G and H.
;\;.Y
Convertible
the Board of Directors,
-
PRIOR
prices in excess of the principal amount of such bonds, exclusive
interest, will not be considered.. Interest on bonds accepted for purchase,
whether in
registered
but not thereafter.
or
all tenders and
Persons
PREFERENCE
.
'
be obtained from the Com¬
i
Both dividends'
Bonds
any
be
;
40 Wall Street
rated,-is particularly attractive at
the present time, according to an
analysis issued by Seligman, Lubetkin
&
Co.,
Inc.,
41
Broad
Street,
may
New
•
be
had
York
from
City.
Copies
Seligman, Lu-
betkin & Co. upon request.
December
1,
Treasurer.
.
1942.
bonds due
due
1977
of
and
1956
Warren
offer
particularly attractive!
at the present time,
according to a circular being dis¬
tributed by Josepthal &
Co., 120
Broadway, New York City, mem¬
bers of the New
change.
York Stock Ex¬
Copies of this interesting
circular discussing the situation
on
these issues may be had front
Josephthal & Co. upon request. - "
,
Shaskan Adds Siepser
-
James
Stone, Moore & Co.
DENVER,
bonds
Bros,
railway company
By F. J. GAVIN, President
The 4j/2%
5%
Treasurer
accompanied by appropriate detached assignments.
St. Paul, Minnesota
OLDENBURG.
Offering Possibilities
earnings outlook for the
Building, Incorpo¬
The
Now
November 17, 1942
*
D.
Oklahoma,
Warren Bros. Bonds Seen Y
payable Dec.
Attractive Outlook
.
such tender must be surrendered to the
great northern
Tulsa,
YY
possibilities
Coupon- bonds should have the January 1, 1943 cou¬
and subsequent coupons attached. Registered bonds must be assigned
or
.
share
are
December 1. 1942
pany may agree upon.
in blank
to
the
certificate
of
incorporat'on
of
Writ
27.
1926,
payable
Januai-y 9,
1943.
to
itocicholdcrs cf record at the close of bus'.nesg
December 19, 1942.
share
,
Company at the office of its Agent, The First National Bank of the City of
New York, on or before December '23, 1942, or such later date as the Com¬
pon
50
,-ihe issue of 160,000 shares provided by amend-
E. A. Bailey
Company or its Agent should have their signatures guaran¬
bank, trust company or a member of a recognized stock exchange.
acceptance or rejection of tenders will be mailed not later than
14,1942, to the makers thereof at the addresses designated by them.
accepted pursuant to
1938
31, 1942 to stockholders of record
at- close of business Dec. 15, 1942.
unknown to the
December
per
35c per
the Agent stating the price at which such bonds are so. tendered.
All tenders must he received by the Agent on or before 3 o'clock P.M.,
Eastern War Time,. December 8, 1942. Bondholders
making tenders who are
Notice of
NO.
Board
of
Directors
of
the
MARGAY.
CORPORATION
has
this
day
declared
,i
dividend
cf
twentv-fivo
cents
a
share
on
"he
outstanding stock
of
the • corporation
of
STOCK
COMMON STOCK
pany or
teed by a
CORPORATION
OIL
E.
V
:
Agent, The First National Bank of the City of New York, 2 Wall Street,
may
OIL
DIVIDEND
Jfor quarterly period ending Dec. 31, 1942)
,
letter in the form which
MAUGAY
uent
.
a
Sec.
J.
N.
follows;.
Dividend Series of
621/2c
form, will be paid to December 23, 1942,
The Company reserves the right to accept or reject any
to accept or reject any part of any (tender, v
or coupon
desiring to tender bonds for purchase by the Company pursuant
and mail to the Company at the office of its
York, N. Y.,
1912,
.
$2.50
to this invitation should fill out
New
24,
FELDMAN,
The
Tenders at
of
as
J.
November 30, 1942.
Dividends, have been declared by
December 8, 1942 for sale to the Company
December
on
mailed.
be
"
The Great Northern
to
INC.
Dividend
>
COLO.—Donald
F.
Brown &
Siepser has joined the
trading department of Shaskan &
Co., 40 Exchange Place, New York
City, members of the New York
Stock
and
New
York
Curb
Co., U. S. National Bank
Building, announces the change of
its firm, name to Stone, Moore &
ated
Company, Incorporated.
Co., Inc., and prior thereto with
no
change in personnel.
There is
changes.,
with
He
was
L.
Strauss Bros.
J.
Ex¬
recently affili¬
Gold water
-
&
'
-the commercial & financial chronicle
Number 4130v
Volume 156
FINANCIAL NOTICES
/
Royal Bank of Scotland
This Announcement is not
an
Offer
'
Incorporated by Royal Charter 1727
'
'HEAD
Colombian Mortgage Bank Bonds
OFFICE—Edinburgh
Branches
Agricultural Mortgage Bank
Agricola
(Banco
Guaranteed
Hipotecario)
Guaranteed
.
49
SERIES
INTERNATIONAL
SERIES
August,' -1927, Due August 1, 1947
'
'
■
TOTAL
request
upon
NATIONAL SECURITIES & RESEARCH CORPORATION J
SV
•f
ASSETS
Bonds
Twenty-Year 6% Sinking Fund Gold
Prospectuses
I
,
'
.
FIRST MUTUAL TRUST FUND
Charing Cross, S. W. /
64 New Bond Street, IV.
Twenty-Year 6% Sinking Fund Gold, Bonds
120
—*
v
Broadway,
New York
"
■
t
v
£98,263,226
15, 1948
Issue,of April, 1928, Due April
COMMON
Burlington Gardens, W. /
:
k
.
Januarys J927, Due January 15, 1947
Issue1 of
Guaranteed
-
Twenty-Year 7% Sinking Fund Gold Bonds
Issue of
Guaranteed
1926, Due April 1, 1946
preferred
STOCK
;
STOCK SERIES
8, Weil Smilhfield, E. C. I
Twenty-Year 7% Sinking Fund Gold Bonds
Is»ue of
N>\
LOW-PRICED
3 Bishopsgalc, E. C. 2
.
Securities Shries
x
>
'
*
SERIES
BOND SERIES
OFFICES:
LONDON
INCOME
low-priced
Scotland
throughout
\
BOND
SERIES
Bank of Colombia
-
'
.',1,
,,
-
; .i'
'.>;t
(Banco ilc Colombia)
Duterl
April 1, 1927, Due April 1, 1947
''
'
Associated Banks!
;■
Williams
Twenty-Year 7% Sinking Fund Gold Bonds of 1927
*.
•
Twenty-Year 7% Sinking Fund Gold Bonds of 1923 t
v '
Deacon's
/
Bank,
Investment Trusts
Ltd.
Glyn Mills & Co.
,
April 1, 1928, Due April 1, 1948
Dated
Australia and New Zealand
A PLEASANT SURPRISE
BANK OF
More than 100,000 owners of investment company shares will
enjoy the happy-experience of discovering that dividends received
Mortgage Bank of Colombia
Colombia)
(Banco Hipotecario lie
,
r,
,•
Twenty-Year 7% Sinking Fund Gold Bonds of 1926
November
Dated
1, 1926, Due November 1, 1946
•' '
,
' '
Twenty-Year 7% Sinking Fund Gold Bonds of 1927 '•
)
•
,;
,
,
Dated .-February'-1, 1927, Due February 1, 1947
t
*
<
/ /■■
/
,
> TweiityrY'ear
:
'£•;
.
4
V
6^% Sinking Fund Gold Bonds of 1927
Dated October 1, 1927, Due Oct ober 1. 1947
v-I
/
of Prop.
Y'('
Mortgage Bank of Bogota
"
\
(Banco Hipotecario Ue Bogota)
'
Vy.'Y
v,,,, ■:
•'
y
Twenty-Year, 7% Sinking Fund Gold Bonds
V
\ *"
May, 1927, Due May 1, 1947
of
Issue
■
Aggregate
Assets
30th
V
Sept;, 1941 ____2—__£150,939,354
y
;
>
'/
'
•
; SIR ALFRED DAVIDSON, K.B.E.,
<
.••/',
V''1"•■bTwenty-Year 7% Sinking Fund Gold Bonds
'
f
October I, 1947 '
kspe^f October, 1927, Due
.
:;
,
(
'
Manager
General
«;
Head
"
,
suit of
£23,716,600
.
George Street, SYDNEY
Office:
■•and largest bank in Australasia.
required coupons for
Rep ublic;of Colombia, 3 % Ex tenia! Sinking Fund Dollar
Bonds, due October 1, 1970, with the coupons maturing
London,1 it
efficient
Coupon
on
the
3% bonds is
new
V
'
' v'"'
'
i (Banco Agricola Hipotecario)
'*'•
;
-4
Yd
: .V^ *! '
it
investors,
to
n
*
C.
W. 1
Agency-arrangements w ith Banks
throughout the U. S. A.
NATIONAL BANK
■,; :-<y
capital
FUND
RESERVE
.
.
.
6
To the Holders of
f,i.
*
yS
The Kingdom
of Belgium External Loan
The
yjr*. EGYPT
Payable September
The Kingdom
Vv
1,
the
of Belgium External Loan
./y
7
y.
issues
have
been
*
•designated by the Belgian Government
stockholders
'''v, y
as
V1
that provided in the. sinking fund clauses of the
,procedure similar to
COlltffliCtS*
'
'
'
stockholders'
v. 4
,
-
available
meetings
to
A
'
"If Boston Fund postpones mak¬
tax as an ordinary corpora¬
tion.
By realizing losses from the
sale,
of
securities, it
paid
may
dividends
are
And
because
received
income
corpo¬
allowed to deduct 85%
dividends
in
assumption
dividend
.
tional
are
Bank
City
have
City
Ambassador Extraordinary
situation
in
pre¬
ing figures are given in the cir¬
cular comparing the securities in
New
in
York
decided
definitely
Cities
the
of
ment
to
tax
a
on
nounced
ors,
to
consti¬
will
non-taxable
or
to
as
payments
1943
choice
similar
A
Accord¬
now
in¬
been
has
an¬
Incorporated Irivest-
by
this company being the first
far
as
this column is
aware
-
its decision with re¬
spect to its 1942 tax status. Other
investment
companies which have
substantially identical
announced
plans
can
are
Affiliated Fund, Ameri¬
Selected
Business Shares and
American Shares.
New
•
Stocks
York
Funda¬
and
mental Investors have gone a step
announced
their
tentions with respect to
1943.
further
and
this point the sponsor
in¬
On
of these two
tax
lar situation will exist
of
does not intend to file as a regu¬
lated company
rates
for that year."
exception to the general po¬
An
applicable to
start
at
individuals
19%, it seems advisable for Bos¬
ton
little doubt that the present
of the preferred stock is
•the result of undue attention fo-|
•cused on the "power and •■light";
activities of the company and the
low price
Fund to pay a tax
as an
or¬
of
Lord,
Abbett's
Funds—and
taken
Union
with
good rea¬
very
sponsor points out.
realized
or
realizable
."Without
losses available in amounts
cient
of the fact - that the
activities and investments
the company are centered in
.oversight
major
of
the
petroleum industry.
Interest¬
CHICAGO, / ILL.—Charles
J.
Cullen has been re-admitted as a
general partner in Langill & Co.,
134 South La Salle Street, mem¬
bers
of
change.
the
Chicago
Stock
Ex¬
by
Trusteed
.
the
as
son,
is
field
the
sition
(Continued
suffi¬
invest-
tocounterbalance
1975)
on page
shareholders during
to
calendar
from
year
"
Federal
the
1942 to be exempt
income
taxes
ap¬
plicable to individuals.
to
"For
Federal
tax
income
Keystone
pur¬
such tax exempt dividends
should be considered to be in the
poses,
Custodian Funds
Articles
BONDS
of Associa-
Business Men's Investment
,
"The
any
is not directed to
action
special
situation,
is
but
Send fir
Prospectus
cers
•
B2
.
,
«
•
•
B3
•
B*
...
PREFERRED STOCKS
a
general safeguard to protect offi¬
Bl
Bond Fund
Bond Fund
Low Priced Bond F und « •
Speculative Bond Fund , .
Medium Priced
K1
Preferred Stock Fund . .
Appreciation Preferred Stock Fund
Income
and directors against the ex¬
pense
amendment
form
It is
of unwarranted suits.
understood
Cullen Is Langill Partner
as
to
dividend
income of some 6%.
income
in 1943
At the new corpo¬
rates, this amounts
effective tax rate on
an
subject
of its divi¬
15%
,
.
.
.
Iv2
COMMON STOCKS
.
;seems
to
make public
regards realization of losses and
in
that
event
the
management
but
dend income.
ration
is
corporation,
ordinary
tion.
Service
portfolio and
ferred
stock
of
Cities Service
discussing the outlook for holders
Company offers most attractive; of the preferred stocks. Copies of
possibilities according to a cir¬ this circular may be had from
cular issued by James D. Cleland James D. Cleland Company upon
Company,
65
Broadway,
New request.
York City, which declares there
the
many
is not warranted."
come
■
in
taxable
tute
holders in the form of an amend¬
current
with
computing taxable income, an .companies, Hugh W. Long & Co.,
such as Bos¬ notifies its dealers as follows: "It
ton Fund, filing its return as an is further anticipated that a simi¬
and' paid
York
New
in
considering taking
similar
action
this
year.
The
Chase National Bank and the Na¬
elsewhere
,
(submit'.the matter to their share¬
The
so
be foreseen.
now
any
shareholders
so
against1
by GEORGES THEUNIS,
Cities Service Looks Good
action
factors, including possible further
changes in the tax laws, which
'
1942
of
course
-
,
27,
re¬
dinary corporation at an effective
rate
of
6%
and, by
realizing
the" expense of litigation in cases« losses from the sale of securities
where there had been a success- in-an amount equal to net invest¬
ful defense. A number Of the na- ment
income,
cause
dividends
their officers and directors
'
November
a
of
indemnification
the
authorize
Remittances for the retirement of bonds will thus In effect be placed on a basis
ifcimilar to that with ■ respect- to remittances for interest, pursuant to the • Belgian
Government's notice dated August 23, 1941.
'
THE KINGDOM OP BELGIUM 7
•
'
"As the tax
pertinent loant tionaT banks
'
made
banks in New York took action at
v,
.
advices
v4<A 'year ago many of the state
provision for ,the
■^retirement of bondsonly -in amounts-equal to. those • proportions of -the" contractual.
Binking fund payments which it calculates to be applicable to licensed and designated
bonds, and to suspend contractual sinking fund payments.
Consequently, after the date hereof, the Belgian Government will pay such, sums!
bo
determined to J. P. Morgan & Co. Incorporated and Guaranty Trust Company of
New York, as its agents under instructions to apply such moneys solely to the retire'ment
of
licensed
and; designated
bonds,' following, to the extent appropriate,' a
-
Nov. 23 said:
Government considers
appropriate, until the return of more, normal conditions, to make
Chase" National
the
-
City Banks of New
York at their annual meetings in
Order No. 8389, a§
accordingly,- been
eligible for purchase or redemption,' '» •>
In view of the above-mentioned restrictions the Belgian
It
as
31, 1942, may be summed up
follows:
is
year
investment company
and- National
-»
under Executive
licensed
stockholder
the
this
individuals.
As to forthcoming action of the
•
■January
present restrictions only certain of the unconverted and outstanding bonds'
above-described
some
The gain which will ac¬
to
rations
-
•amended, of the President of the United States of America and have,
j
in
SUDAN
For Chase and Nat'l City
• v
1949, and
Payable June 1, 1955:
a.'-
Under
the
next
impossible to state at this
what
whether
of
no
course
The report concludes:
"It is
time
what
to
as
followed
be
made.
♦
Fund
of Boston
case
in
Thirty Year Sinking Fund 7% Gold Bonds,
>
of
Towns
and
Director Indemnification
;
,
all the
will
their dividends to stockholders tax
of
Kingdom of Belgium External Loan '
r
•
principal
.
and utilize
year
then
to share¬
holders to be exempt from Fed¬
eral income taxes applicable to
C.
E.
the
commitment
ingly,
cause
'
Twenty-five Year 6/4% Gold Bonds,
;
Branches in
l
Street,
In
losses at time of
or
cannot
this
pay a
Thirty Year Sinking Fund 6% Gold Bonds, C '
Payable January 1, 1955
-
<
William
King
7
•',".
-
.
*'7,!-
and
capital gains
tions
ing this election until a later year,
1942 and
Y.*::
V.LONDON AGENCY
reduction of the
in computing
respect to this matter will be fol¬
it may file a return for
£3,000,000
.
toward
cost price of shares
of their unrealized losses to make
L
Cairo
£3,000,000
.
post¬
————
lowed in 1943 because of
as
"
A Commercial Register No. 1
fully Raid
be
may
applied
—
return of capital and
a
Taking advantage of this choice,
investment companies plan
to pay taxes as ordinary corpora¬
Oct.
Cairo
Office
it
procedure, to quote
from the Quarterly Report of Bos¬
ton- Fund
for the period ended
1
!
made—but
sult
of EGYPT
•,
■
is
crue
IVHead
The de¬
"regulated
company" is final once
a
as
"
?*.'P!
(Gerente)
qualify
many
E.
Street,
47. Berkeley Square,
to
dis¬
income
on
poned indefinitely!
these
in
•
BANKI
1
whatever
exempt.
v-;.vvBy": Juan'-Salgar '"Martin
December 1, 1942
service
Threadneedle
29
■
.
'iw
7vV-
AC1UCULTURAL MORTGAGE
:
7/
';;• ■■.'Y'
Paying Agents,
;
sale."
investment
complete
most
LONDON OFFICES:
;
;
►
being paid at the offices of liallgarten & Co., 41 Wall Street,,'
and Kidder, Peabody & Co., 17 W all Street, New York,;
N. Y.,
banking
the
'.countries..'
-
application to The National City Bank of New York,
The October 1, 1942
u
offers
travellers, interested
traders ..and
.
•
qualifying as "regulated invest¬
ment companies" and paying no
cision
in
Zealand, Fiji, Papua and New Guinea,
.
Corporate Agency, Department, 20 Exchange Place, New;
.York, N. Y.
Y::>v:f -"y;..; ;
::-'j v;
With over
Australia,
States1 of
•New
•
upon
all
in
•and
and
attached, may be obtained
and after October 1, 1942
on
branches
870
exchange the above Bonds and the
to
nature of
tributed to'stockholders.
;-The Bank.of New South Wales, is the oldest
Copies of the Offer, which became effective JuIv I,T942, f
\
—•—
provision in the 1942 tax
law permitting investment com¬
panies to choose between paying
taxes as ordinary corporations or
a
taxes
Xf.'f ;f
,
!
pleasant surprise is the re-®—
".This
8,780,000
likely that next year's divi¬
appears
the shares of many investment companies will also be tax
on
exempt.
6,150,000
Liability
Reserve
y
dends
£8,780,000
Fund
(Reserve
"
_
Capital
holdings this year are exempt from Federal income taxes!
Although not certain, it now
(ESTABLISHED 1817)
,
Paid-Up
•
'
from their
NEW SOUTH WALES
,
to
the
that
is
the
proposed
satisfactory
Comptroller
Investors Fund, Inc.
as-to
of
the
Currency." '
It
is .understood that, the action
was
primarily conceived for the
protection of directors.
Quality Common Stock Fund
Income Common Stock Fund
Republic
40 Exchange Place,
Inc.
New York
.
.
.
.
.
.
*
.
.
.
.
Appreciation Common Stock Fund
Low Priced Common Stock Fund .
Distributing Agent
BULL, WHEATON & CO.
51
.
Prospectus may be
-
53
SE
obtained from your dealer or front
The Keystone
50
52
Corp. of Boston
congress street,
boston
THE COMMERCIAL & FINANCIAL
1968
Finance
Commissioner
and
1
his
are also appended.
1
(Ed. Note-rVery few municipal
bond issues of major
size - are
unceasing tussle with
an
,
lower mill rate with its
The
of
announcement
recent
the intention of the
city
City of Phoe¬
nothing
sale
Dec. 22
on
$33§,000
total of
a
bonds
has
served
should
the
to
be
cision handed by down the Ari¬
but
Supreme Court
this year in the case of Maricopa
for
in
call
banks
but
agreement
is
at
the
Newark,
;
the
been
able.
The
said,
in
to
as
the
of
case
since
non-call-
decision, moreover, was
in implication, it was
apply in equal force
broad
so
considered
bonds issued
any
1913
by counties,
and
school
palities
munici¬
districts
throughout the State. It was re¬
cently indicated that the matter
would
be
appealed
courts
on
the
holder
of
the
bonds
suit
in
Federal
that
ground
was
which
no
party
a
resulted
in
to
the
court
ruling. The county, how¬
ever, is currently making plans to
refund the bonds in question.
Meanwhile, it will be inter¬
esting to observe what effect, if
the
any,
the
decision
nix
offering,
which
will
have
in
of the projected Phoe¬
case
do
the
terms
include
not
of
any
op¬
tional clause.
Despite this fact,
the attorneys who will furnish
the
final
Messrs.
.
.
bess,
approving
Gust,
opinion,
Rosenfeld,
Robinette
Divel-
Coolidge
&
of
Phoenix, have stated that "the
existing opinion of the (Ari¬
zona) Supreme Court (in the
Maricopa County case)
is so
broad in its implication that
opinion
the
on
funding bonds
municipal
our
(Phoenix)
well
as
and
other
as
school
re¬
district
bonds that may be issued prior
to a further declaration by the
Supreme Court
must
the question
on
necessarily
refer
said
to
decision and the possibility that
said bonds will be subject to
.
call at any time."
;
This
with
will
course
respect
to
be
the
followed
Phoenix
is¬
sues, although the attorneys ob¬
served that the bonds in question
being issued under a different
statute than that involved in the
are
rent
Briefly
stated,
bondholder
the benefits
who
makes
to. a
an
ex¬
as
that
bond
he
secures
(or
a
the
secures
a
bond
in, plus (b)
the
for
1%
fee
he
pays
the
"Advantages
to
the
City.
The
eliminate the uncertainties of fu¬
interest rates, including any
in rates that may result
ture
increase
from
subjecting the income from
municipal bonds to the Federal
personal income tax.
By making
exchange .now it insures itself
against having to pay, after given
dates, more than 314% on such of
an
the
bonds
Atlantic
Defer
as
turned
are
in
for
Bonds
Comptroller. The Comptroller
press
as
was
est
months, and
fore
do
we
have
think it wise
that time
anything."
Commissioner
Bader
refused
ment
we
until after
to
than
much
last
time."
year's
budget,, it
be¬
Finance
is
make
other
said
any
"we
com¬
paid
The
to
too
present
said, con¬
tained a sum of $549,137 for a
bond call, of which
$505,000 rep¬
resented
balance
year's
call
an
left-over
bond
water
made, by
November
was
appropriation and the
a
the
and
the
from
call.
last
The
city
was
average
last
in
price
paid at that time was $95. The
city's bonds were recently quoted
at
$87, it
was
Under
the
bonds
new
said.
Toronto's Indebtedness Cut
The remarkable
agree¬
with
consistent
1932
has
been
respect
by
and
taxing units are no less impres¬
sive, although they are not accord¬
ed the prominence
they so
merit.
With this as a
righly
in interest charges
bonds before matur¬
half mills
the
on
1942
tax
and
Toronto
"Globe
In
1932, Toronto's total
a
10 years.
debt
has
nosedive during the past
Cold figures in sombre
statements
will
is
the
support
-
-
an¬
on.] institutions
Pressure-
sinking funds to switch into
governments is undoubtedly very
great, but it can be successful
only while there is an improve¬
since
pared
then,
.
until
it
today
has
the
been
total
It will
ment
is
the
in
return
lowing figures show the steady
to
decline during the decade: 1933,
would-
$191,487,601; 1934, $188,547,562;
1935, $180,683,302; 1936, $176,066,410; 1937, $167,425,350; 1938,
ously!' It
be
be
pressed in
depress
1940,
could not hurt
Lascelles.
They
long periods, and the
strict economy instituted by City
Council of spending money
^
only
.for essential new works and serv1cgs.
'
'
r
.
•
.4
Included
this
in
sum,
$15,146,791 for di¬
unemployment
relief,
for
was
which debentures
were
issued for
short terms and at very low inter¬
est rates.
Less than $1,000,000 of
That
result
1
'
I
bidder
Co.
and
offer
sale, -several years ago.-successaccount of Smith, Barney &
made
Freres
by
&
First
Co.
/
high
Corp.' and
..
...
Victory Fund Group
the
end'of
1944.
Citizens of North Toronto have
sale
/
of
the
Cumberland
County Power Co.
debt/preferred stock and Central
Maine's
bank
loans.
; v
>
Attractive Possibilities In
> •
New Warren Securities
The
of
securities
new
under
the
to be issued
plan of reorganization
Warren
Brothers
^Company
offer, interesting possibilities ac¬
cording to-a comprehensive circu¬
issued
by
Paine,
Webber,
Jackson & Curtis, 25 Broad Street,
New York City, members of the
New
Approximately 5,000 volunteer
workers, from the staffs-of com¬
The
York
Stock Exchange and
leading national exchanges.
other
circular
contains
a
brief
re¬
of
during De¬
cember, Perry E. Hall, Executive
Manager
of the
Victory Fund
exchange terms under the
plan, ah outline of the new capi¬
talization, security, sinking fund,
provisions for class "B" preferred
stock," pro-forma interest cover¬
age
and earnings on preferred
stock/ current business, working
capital/excess profits tax base and
prospects for preferred dividend.
Copies of the circular may be had
upon request from Paine, Webber,
Committee
Jackson
mercial and savings banks,'trust
companies,
investment ' dealers
and brokers, insurance companies
and
others in
Bronx
30
Manhattan and the
went
into
opening
the
Drive to sell
by
the
$12,500,000 3V2s, as well as those
' $5,000,000
10-year
serial
notes to be placed privately and
261,910 shares of $10 par common
stock, will be used to retire the
Opens Dec. Loan Drive
Treasury
records
from
from
lar
N.Y.
the relief debentures remain to be
the
$1,494,000 first 4s, 1960.
Proceeds
Second
Boston
Associates.
and
:
;
was
Lazard
Cumberland
County
Power ; &
Light Co. are being absorbed aqd
liability assumed for that com¬
pany's $9,275,000 first 3%s, 1966,
'
$600,00 Allentown, Pa.
At previous-
ful
present financing by Cen¬
! n'» ■*!.
t.December 15
paid off, and they will be cleared
from
rise.
The
tral Maine Power Co. is pursuant
to the plan whereby the assets of
-.
During the 1932-42 decade the
city's new debt amounted to $51,-
rect
seri¬
^
'
943,101.
however,
market
anyone/prices are
plenty high enough."
\
/ /
are
the
practice
of
financing
capital expenditures through issu¬
ance of short-term debentures in¬
stead of for
volume Which
a
the
however, prove to
feeding the stream
so/constantly] that
of
are chiefly responsible
picture, ] says ] Finance
Affiliated with the First Boston
1
.
by
may,
reservoir
a
$158,556,184;
Commisisoner
secured
selling, it is not likely
offerings
prices cannot
this
be
exchange.v Since \there
is
nothing necessitous about this
come
old holder
for
to
'
still more, says Finance
Commissioner Lascelles. The fol¬
action
on
Victory
Nov.
Loan
$9,000,000,000 of U. S.
securities
for
the
-
Second
Fed¬
eral Reserve District, announces.
paying for a sewer and
drainage system for the past 13 The Committee's plans call for a
years, and this debt is due to be thorough canvass of investors and
sume
Curtis.
&
been
at the end of 1944.1 business establishments by these
improvement project workers who are formed into fif¬
cost
more 1 than
$8,000,000, and; teen teams, each headed by one of
North Toronto tax bills will drop; fifteen largest commercial banks
when it is finally laid to rest in the two boroughs.
A total of
along
with
the
city's - other 66 banks and nearly 300 invest¬
cleared
This
off
local
ment dealers
Mobile, Ala. Seeks Court
Ruling On Bond Issue
ing
-
the
City,- and
as
decision
of
Circuit
the
to the
city's authority to
raise street improvement funds by
increasing the amount of Bankhead
tunnel
bonds.
In
event
the
procedure should be held legally
permissible, the city plans to is¬
sue
the
$4,500,000 of tunnel bonds for
purpose of retiring the $2,600,-
list
($500,000
sues
or
herewith
the
more
municipal
offerings
over—short' term is¬
excluded),-which are.to.come
up
in the
of
the
near
eral :
and brokers are in¬
future,
successful
The
bidder
runner-up. for. the.
last
names
and
/
boroughs of New York
in- other communities
Second
(New York)
Fed¬
Reserve
District,, general
been organized to
potential investors.
In¬
companies, through the
have
groups
canvass
surance
Chairmen
ciation
of the
of
National
Life
Asso¬
Underwriters'
Committee for National War Sav¬
ings/have cooperated with banks
and investment
dealers, under the
direction of the Regional Chair¬
men
of the Victory Fund Com¬
has asked the Victory Fund Com¬
mittee to do the most important
job that they have yet undertaken, and we^must succeed in
that job completely. 'The nation
is
spending for
now
than
more
war purposes
$1,500,000,000
each
week, and to win the war it must
and will spend any amount, nec¬
essary;
put the
behind
To raise this money, and
resources of the country
our
individual
with
the
armed
and
available
forces,
every
corporation
every
cash must lend
Government
to
by •* purchasing
its secuirties."
For the
Victory Loan Drive, the
is offering three new
issues; a description of the securi¬
Treasury
ties
appears
elsewhere
in
these
columns.
Mr. Hall further said:
"Somewhere
in
this
..
list
every
mittee, in organizing these groups.' investor will find a security suited
Allan Sproul, President of the to his particular needs.
Behind
Federal
Major Sales
We
In other
in_the
City,; Commission is await- >
important
municipal
probably
gross
year
&
Mail," follows:
taken
municipal
debt stood at $195,064,861. Each
Scheduled
the
take,'
swer.
ment effected by
Toronto, Onta¬
rio, during the past decade.
The
story, as set forth in a recent is¬
of
Will
celles estimated.
000 now outstanding and to pro¬
vide for street improvements and
other projects.
us
The issue, which
on
character
rate/ Finance Commissioner Las¬
here review the splendid
prog¬
ress in the matter of debt
retire¬
preface, let
sue
Nov." 30
..
a
Court
Canada's
Burr, Inc.
awarded to the syndicate on
was
recent
ity /amounted to a considerable this sort of selling ,there is likely
It would equal about one to be.
'As much as the market
sum.
regularity since
widely publicized
of
years'] debt charges.
period/ ;of; years,' the
retiring
The
certain
the statement.
mu¬
these columns and elsewhere.
While this is true, it is also a fact
that the accomplishments in this
retirement
some
by
continued
has
in
financial
but
record of debt
which
in
fin &
'last
space
cluded in the teams.
reduction by our States and
nicipalities
of time.
•: This
the citizens money-.
dwindling outstanding debts.
$85,000,000 In 10 Years
Toronto's
refunding
bonds,
compared
out of line."
ment, the city must appropriate
certain sums each year for the
of
as
change would, of course, mean a
saving—mot necessarily
proportional, but possibly not far
say¬
ing on Nov. 23 that "January,
February and March are our poor¬
to wait
the
smaller
The above city does not contem¬
plate issuing any call of outstand¬
ing bonds until possibly next
spring, it was recently indicated
by
Bessie
M.
Townsend, City
quoted in the local
holders.
with the cost of the present bonds
over
their life.
A
smaller
ex¬
City May
Call
their
of
...
; eight
_
principal objective of the city is to
ahead
saves
two factors
:■;;•••
this
activity
„
rer
.
ex¬
change.
in
dealer
Further selling of Corp. and Coffin & Burr, Inc.,, in
is[ continuing. "In the offering are: Blyth & Co., Inc.;
connection, the Nov. 30 mu¬ Kjdddr, Peabody & Co.; F. S.
nicipal
news
letter Jssued
by Moseley & Co,; Stone & Webster
Hemphill,, Noyes * & - :Co.//4New] and Blodget, trie.'; Harris, Hall; &
York, said invpart-as-follows;
~1 Co. (Inc.); Tucker, Anthony & Co.;
■t
["Dealers hre glad; to have these White, Weld & Co.; A. C; Allyn
old sinking fund and institution al and
Co.,
Inc.; Paine, " Webber,
holdings to bid for, * They com¬ Jackson & Curtis; Arthur Perry
prise a varied assortment of high & Co.; Inc.; Hornblower & Weeks;
grade old issues already familiar; Whiting, Weeks & Stubbs, Inp;
in every detail. Naturally, deal¬ Bodell & Co.., Inc.; Putnam & Co.;
ers and
investors^ both are specu¬ Charles; H.-.. Oilman/ ;& ' Co!, and
lating as to how much more of Maine Securities Co.
this
ex¬
city's present standing in
regard to debt is excellent, and
higher present
market value than (a) the value
of the bond he turns
is
The
a
issues
sinking funds.
1939, $147,434,575;
$132,913,453; 1941, $120,985,431; 1942, $110,585,283.
of
hew
this
amount saved
subject to that
tax-exempt bond
of
various institutions and
down
taxable bond of equal value
to him) except at a much greater
also, he
city with
than
money
only $110,585,283.
a
cost;
bonds
Over \.a";
tax, whereas if he does not make
an early exchange he
may not be
able to obtain
citizens!
a
saves
is not subject to the
personal income tax and
that may never be
the
City of Toronto bond, due to
paid off in 1950; - is ^ actually
paid off in full by 1942, the city
that
Federal
for
be
a
by
Assuming a 100%
Maricopa County ruling. The law exchange of the eligible bonds in
firm set forth its views in a letter the hands of the public, the city
addressed to Refsnes, Ely, Beck & would save more than $45,000,000
Co. of Phoenix, Ariz., under date in net interest cost over the life
of Nov. 20.
tire
If
his present bond to the
bond can be called by
thereafter;
work
more
practice
the city, and bearing a higherthan-present-market rate of in¬
terest
to
more
earns
bond; he secures a
bond bearing the same rate of in¬
terest
noted
week,
pected/a surplus is created to
present
time
amount
n
change under the present refund¬
ing plan are these: He secures a
bond of the city with an assured
minimum life greater than that of
his
As
Maine
general mortgage bonds, series M
3%%, due 1972; is being offered
today by a syndicate headed by
the First-Boston Corp. and Cof¬
prospect
time to
some
coming to"market Will?be small.)
interest it brings in, the
more.'.isr on .hand in the1 city's
coffers.
When the Sinking Fund
the
Bondholders.
the
come
annually to meeC
future debt ?obliga- <
issue of. $12,500,000 Cen¬
Power Co. first and
new
'The 'Sinking Fund money, of
competitive. bidding,
identified in "large
is invested by the city in measure with the] redistribution is being offered to the public at
a price of 107%
securities.
of
old
blocks
of
and accrued in¬
bonds occasioned
By
investing
wisely, the Sinking Fund can be by
liquidation
carried
out
by terest.
made
exchange offer made
on
behalf of Philadelphia .by a
syndicate headed by Drexel &
Co., Philadelphia, and Lehman
Bros., New York, as set forth by
to
policies/' the
A
tral
of
weeks has been
The
bond
"Advantages
demands
course,
sound
reached and the
Philadelphia Bureau of Mu¬
nicipal Research, are as follows:
the
naturally is that for
-.<
.
by
war-time
-
money
aside
city's
tions.
creation of balances caused so
County, Ariz., vs. Sidney P. Osmuch trouble that it was never
born, et al (Loan Commissioners
observed
after
of Arizona).
that.
Instead,
In its decision the
the
State's highest court ruled that
city
sent
just
sufficient
funds to cover the call.
$4,900,000 of outstanding 5 %%
and 6% road bonds of the county,
maturing serially to 1951, were
Philadelphia Bond Exchange *
subject to prior redemption, de¬
spite the fact that they had been Advantages Cited
issued without a specific call pro¬
The advantages to the bond¬
vision and accordingly : had
al- holder and the city of the cur¬
ways
Sinking Fund, one
principal keys to city
placed
should
since
once
was
The
the
finance, is the amount of
has been
say,
necessities
Group Offer
Central Maine Issue
award im the: near
.
Withv expenditures for
improvements held to bare
local
of
First Boston
future.
con¬
paid by Mr. Property Owner in
taxes.
calls
Technically,
the
this, reports
the
scheduled for
sequent reduction in the amount
that
agreement
when
made.
money
observed
May 4 of
on
be
that there
say
the
dates
filed
focus renewed attention to the de¬
zona
in
provides
nix, Ariz., to offer at competitive
refunding
officials
1942
issue sold
A.
associates?
the sinking fund to bring about
a
Thursday, December 3,
"
Lascelles
wage
G.
CHRONICLE
Reserve
Bank
of
New
our
armed
dollars
forces must stand
York/is not only Chairman of the
Victory Fund Committee for the
way
Second
to lend them to
but
Federal
also
Reserve
Chairman
of
District,
Region 8,
The
—
billions of dollars.
to make
our
our
The
dollars fight is
Government.
our
Government promises
to
rer
comprising New York and Bronx
pay, with interest.
Counties.
today is not the best investment
is
Mr,
Francis
Vice-Chairman
of
T.
this
Ward
region.
the. On Nov. 29 Mr. Hall said:
previous
The Secretary of the Treasury
in
the
If
a
U. S. bond
world, there is only one
Jap bond, j, Or a Cer-
that
is—a
man
bond."
.Volume 156 'Number
i :j
4130
THE COMMERCIAL & FINANCIAL
CHRONICLE
Florida Gas Tax Amendment Favorable
To Road And Road District Issues
■
This
advertisement is
neither
an
(Continued from page 1963)
The 2 cents gasoline tax
pledge,
which 1 is
the' backbone
of • this
able
■with
the
State
Board
of
istration, to the credit of the
to
maturing
should one of
solicitation
a
maturing
and
the
December
State
3,
1942.
$12,500,000
Central Maine Power
First and General
Company
Mortgage Bonds
.
Series M 3%% due 1972
certificates
Dated September
ofJ revenue »for a
long period of j would be obligations of the State
time,'there should be flexibility,? Board of
Administration, payable
and this
flexibility should be that I exclusively out of the pledged
1, 1942
Due
September 1,
1972
Price 107%% and accrued interest
which would prevent the accumu-5 and
anticipated revenues which
large surpluses pledged' would accrue to the
county, in
one county;" while other coun-i
question, namely the county for
ties 'V defaulted.'
Therefore, 'the i whose relief the Board of Admin¬
;State Board of • Administration j istration certificates are issued;
was
given■ the' power to invest!
This amendment will
go
into
accumulated surplus funds of one! effect Jan.
1, 1943, and will need
county
into + bonds
of
another j no
enabling legislation as it is
county having depleted sinking self-executing.
funds.- The only objection to the:
Although it will be more than
lation
of these securities.
any
NEW ISSUE
eral counties, and will be set
up, out surplus funds, the State Board
using as guiding principles, those! is empowered to issue Tax An¬
originally set forth by the 1931 i ticipation
Certificates, bearing in¬
Legislature in " allocating1 former'- terest at a rate not
greater than
gas tax proceeds.
•
1
: yi 3%
and maturing within the life
The
State -Legislature, ~ when; of the
amendment, the proceeds
drafting the terms of this amend-' of which would be used to retire
ment, realized that in any such | those
maturing bonds mentioned
plan which contemplated a pledge I above.
These
new
*
of offers to buy
by the Prospectus,
counties have obliga¬
Board of Administration be with¬
sev¬
nor
meet
Further,
several
Admin-: tions
sell
The offering is made
only
sufficient
items.
amendment, will be set up' by and; the
offer to
1969
of
:to
Copies of the Prospectus
-
undersigned
as
may he obtained from such
of the
registered dealers in securities in this State.
are
-
exercise of this power, as we see!
The First Boston Corporation
jeopardized
funds
in
funds
and
by; the
use
county with
its' tion and
of
Road
depleted
default- allowed
a
in the bonds of
occur
with
a
to!
Road
District
to
bonds
of
the
problem has been greatly broad-' relief
•ened
and
what
applies to the'
with depleted funds can
apply to maturing bonds of
'a county whose funds have been
leaving
the
.extent
ad
valorem
which it will give.
county
able Florida's
also
over-invested 1 to
from
greater
debt
of
This will
problems,
to
their
Bodell &
which
Brokers
:
The
The
Filing Form
Securities
Commission
NSTA Service
the
Exchange
adopted a new
in
are
the
who
armed
are
light
Co., Inc.
Putnam & Co.
to find the way of life
they
fought for destroyed at home.
Flag
now
this
to
do
surance?
Simply this.
is
the
about
that
is
are
with
by
close to home.
to
be
type
of
in
used
is
financial
the
Con¬
Raymond W. Smith, U. S. Navy,
formerly with Chas. W. Scranton
& Co.; New
Haven, Conn. William Lally, U. S. Army, for¬
filing
standard
questionnaire,
.
which is the outgrowth of several
discussion between ■ the
hat
and
talk
go
■.
•
over
with
down
j* *
'
,'
the
SEC and committees appointed
on your
'' ''
1
to
■
1
'
■
problems
Commissioner
.
.
formerly
head of Wm, H. Rybeck
Co., Meriden, Conn.
N. Sachs, U. S.
the
Association
of
Stock
Army,
Ex-;
change Firms, national securities formerly with Turner, Sachs &
exchanges, the American Insti-j Co., Hartford, Conn.
Bruce H. Beal, U. S.
tute of Accountants, the Commod¬
Army, for¬
with
ity Exchange Administration, and, merly
Kennedy-Peterson,
certain independent accounts "ex¬ Inc., Hartford, Conn.
pert in brokerage and investment,
house accounting,'! ,the Commis-,
sion declared. It is expected that
ities Dealers, Inc., the Investment,
Bankers Association of America,!
&
Kelvin
dealers
that, way in Washington."
Member firms of the New York
Stock
Exchange
Nov. 27
Form
Dec.
that
120
advised
were
revised
a
will
be
of
substituted
7, for the present
on
The
one.
revisions in the form involve
(1)
the addition, at the
request of the
adoption by all
bodies of a standard
daily
a
item, namely, the
new
round-lot
volume
of
chases and sales of stocks
(2) the exclusion of
,regulatory
form of questionnaire would
in
of
Insurance
the
Hotel
.
Nov.
30,
re¬
Commissioners
Pennsylvania,
of
non-member
pur¬
the
on
accounts
customers;
old
an
asserted
that
freedom
could
be destroyed as much
by
savings of approximately,
"unrestrained bureaucracy" as by
$500,000 annually to brokers and
military invasion and domination.
dealers," the Commission said.
sult in
a
.
"The
known
Commission's
as
new
Rule X-17A-5.
rule is
In gen¬
eral it requires brokers and deal¬
to submit reports of financial
The New York "Times" of Dec. 1
further reported Mr. Fulton as
follows:
Mr.
Fulton
ers
condition
least
to
once
the
each
form X-17A-5.
under
cases
Commission
year
on
the
at
new
It specifies certain
which
the
reports
must be certified by an indepen¬
dent public accountant, and con-,
tains requirements with respect to
the
and
qualifications of
the
tained
information
in
tificate."
the
accountants
to
be
con¬
accountant's
cer¬
/
Although the rule becomes ef-'
.fective, immediately,
no
reports
need be filed before Jan.
1, 1943.
declared
ginning with the
that,
be¬
first World War
and
continuing through the de¬
pression, "and tremendously ac¬
celerated in the present
crisis,"
there had
The
filed
or
revised
by
settle
necessities
of
the present
situation, but unless
that trend is arrested and
reversed
when this war is
over, the Ameri¬
can
way of life as we have known
it will be a
thing of the past.
It
will profit our armed forces
little
to win battles abroad if
they
come
only firms
will
which
,
opened
at
accounts,
prompt transmission
porting
firms
transaction
"The
corres¬
who carry customers'
for the collection and
of
to
the
the
re¬
required
figures.
Securities
Commission
will
provided by
a
and
Exchange
figures,
accept
tally sheet record,
the number of shares
bought
and sold on the Exchange for noncounts.
found
customers'
Where
this
margin
method
ac¬
is
for, $1,220,276,000.
accepted, $503,206,000.
Range of accepted bids:
16
Low,, 99.906, equal to,a rate of
approximately " 0.372%
,
1943,
13,
Federal
discount
per annum.
Re¬
^
of this issue
•
are
Average price, 99.907, equal to
rate of discount
approximately
a
as
0.368%
•
amount
501,422,000
was
;;
High—99.925. Equivalent rate pf
approximately
0.297%
sue
;
.
bills
Nov.
on
12
in
of
previous
$500,000,000
of 91-day
bills, dated Nov. 12 and maturing
10,
Total
the
1943,
Treasury
\
of the
91-day
previous is¬
Treasury
bills,
maturing Feb.
Nov. 23, were
on
as
for, $1,149,026,000.
accepted, $501,722,000.
Range of accepted bids:
discount
per
0.297
approximately
annum.
discount
per
?
■
approximately
annum.
of discount
for—$1,013,151,000
per
501,485,000
Range of accepted bids:
.
0.372%
,
Average, 99.907, equivalent rate
on
disused these results.
^lied
price
Low, 99.906, equivalent rate of
$350,655,000.
respect to the
With
the
low
High, 99.925, equivalent rate of
amount of
issue
of
Total
of the amount bid for at
of
results
Total applied
.
issue
of
the
at
follows:
approximately
0.372%
per annum.
Q'-y.'"i U •
Average price—99.906 + Equiv¬
alent rate of discount approxi¬
mately 0.371% per annum.
lar
for
24, 1943, sold
Low—99.906. Equivalent rate of
che low price was accepted.)
There was a maturity of a simi¬
bid
.
22%
dated Nov. 25 and
discount
(85%
annum.
accepted.
The
discount
;
per
Approximately
for_—-$1,157,405,000
per annum.
approximately 0.370%
annum.
(55%
of the amount bid for at
the low
price
was
accepted).
High—99.925. Equivalent rate of
discount
with their member
pondents,
the
accepted
v
17,
Range of accepted bids:
Nov. 9
clear
Total
Nov.
on
Nov. 16.
on
The details
be
"The reporting firms are re¬
quested to make suitable arrange¬
ments
Feb.
on
offered
banks
transactions, accordin_
The letter continued:
member
the
120
Korn,
Acting Secretary of the Exchange.
ple being governed."
recognize
Form
letter sent out by John C.
on
"I
mature
were
serve
Feb.
in odd lots.
been a trend in which
"the functions of
government be¬
came too detached from
the peo¬
■
to
were
and
item,
namely, the number of shares sold
a
on
and
which
Securities and Exchange Commis¬
sion,-of
as
High, 99.925, equal ,to a rate of
$500,000,000, discount
approximately
0.297%
thereabouts, of 91-day Treasury
bills, to be dated Nov. 18, 1942, I per annum.
on
edition
Total applied
Nov.
on
are
-
or
;
For NYSE Houses
The details of this issue
follows:
for
Total accepted
Revised Report Form
Freedom, Says Fulton
tion
that ..the
tenders
the
follows:
.
.dustry
announced
that
Total applied
Exchange for the margin
regulatory bodies requiring(
reports
from;; brokers
and members pf se¬
James A. Fulton, President of
curities exchanges will also
.use!
the Home Life Insurance Com¬
the new report form.
;!
,;
j pany,
speaking -at ; the Winter
"It has been estimated by repn
resentatives of the securities in-! meeting of the National Associa¬
financial
and
We know from
Bureaucracy Fatal To
-
other
•
of your own State.
genthau
experience that it does not work
Co., Hartford, Conn.
V
William H. Rybeck, U. S.
Army,
by
the National Association of Secur-,
:,
Secretary of the Treasury Mor-
a
street
1
•,, ■
,
Bill
that
is worth
joint
your
in¬
bodies
It
the insurance
merly, with J.; Arthur Warner &
months'
Company
Treasury
Offering
business
good bit to be able to put
*■
VV\'
form
statements
Securities
Result Of
Insurance
great
one
regulated
of
serving
The
has
.
The
Stubbs
Charles H. Gilman & Co.
back
necticut
these
V
Incorporated
Maine
Association is an affiliate
•ruling, under "the Securities and
of the National
Security Traders
•Exchange Act of 1934, requiring
^
"
•registered dealers and brokers to Association, r
Richard
file a statement of their financial
Muller, U. S. Army,
condition ' with
the
Commission; formerly with T. C. Corwin &
Co., Hartford, Conn.
annually.
' :
:'
'V
::
Whiting, Weeks &
problems
members
forces.
Paine, Webber, Jackson & Curtis
•V/".:.'"'-'-"■/.(+.
Hornblower & Weeks
en¬
Connecticut Security Traders
Association
and
has
following
■<
Tucker, Anthony & Co.
Incorporated
"What
SEC Rule Standardizes
Company
Incorporated':
:
;
Moseley & Co.
other
cash balance avail-! of this sound legislation.
a
'■+
Arthur Perry & Co.
taxing units to give
attention
v,
'
taxation
much less acute in the
seem
Harris, Hall & Company
A. C. Allyn and
!■■■',
'v,v v,•
..
above
F. S.
(Incorporated;
White, Weld & Co.
However, it' category, it will also do much to
be borne in mind that the! aid
cities,
school
district
and
of
Florida's "Road
debt other
taxing units because of the
must
Blodget
Incorporated
bonds.
Although the amendment pertains
the county' strictly
Kidder, Peabody & Co.
Stone & Webster and
surplus funds.
scope
not
Blyth & Co., Inc.
strengthening of Florida
and
Coffin & Burr
Incorporated
month before it becomes opera¬
it, is that the credit of the county! tive, its effect is
already widely
having -surplus funds might be felt through a general stabiliza¬
a
approximately
0.300%
Larson In U. S. N.
per annum.
Low—99.906. Equivalent rate of
discount
approximately
0.376%
per annum.
: '
.
'
.
.
-Average Price—99.907. Equiva¬
approximate¬
ly 0.373% per annum.
(27% of the amount bid for at
.
lar
issue
of
amount of
maturity of
a
bills
on
a
Nov.
*
*
announced
in
the
of
Tornga,
Lieutenant
and
(j.g.)
reported for
Dec. 1 for his indoctrina¬
Larson is
in
a
U.S.N.R.
on
at
partner
&
Rapids, Michigan has been
12
Harvard
a
University.
Mr.
graduate of Manistee
High School and Michigan State
*
on
Grand
tion
Secretary of the Treasury Morgenthau
Larson,
Larson
commissioned
simi¬
$350,655,000.
*
L.
Young,
duty
the low price was accepted.)
was
De
.
lent rate of discount
There
Edward
Nov.
30
College, and has been connected
with the investment banking field
such
a
tally that the tenders for $500,000,000, in Western Michigan since 1933.
kept, for example, or thereabouts, of 91-day Treas¬ He has been a partner of De
margin
clerks
who
would ury bills, to be dated Dec. 2 and
Young, Larson and Tornga since
check-off,
throughout
the
day, to mature on March 3, 1943, which
its inception in 1937 and has taken
each round lot of 100 or of 10
were
offered on Nov.
expedient,
sheet' could be
by
27,
shares
bought
or
sold for the in¬
dicated margin accounts."
opened
Banks
at
on
the
Nov.
Federal
30.
were
Reserve
a
leave
tion.
of
absence
for
the
dura^
THE COMMERCIAL & FINANCIAL CHRONICLE
sible
Treasury Drive For $9 Billion In DecemberThree New Issues In Record
The
Financing
Treasury Department launched on Nov. 30 its Victory Fund
the unprecedented sum of $9,000,000,000 in December to
the war effort.
The Treasury expects to raise this sum
drive for
finance
through the continuing sale of War Savings Bonds and Tax Savings
Notes, and partly through offering of three new Treasury issues de¬
signed for every class^and type of investor.
The three new issues, on which v——
—
——
the
Victory
Fund
Committees»
"All elements of the banking
launched
an
intensive sales
cam-1
'paign on Nov. 30, and which, Sec- |
retary Morgenthau said, have as
their principal aim—"enlisting ac- 1
cumulated savings and idle funds" i
—consist of 26-year 2lk% Victory,
and
securities
business will
con-
duct a vigorous campaign to asthe widest possible "public
purchases of all issues of these
securities.
In conjunction with
sure
weekly
sales
of discount
bills,
these arrangements will make approximately half the $9,000,000,000 of Treasury borrowing in De-
bonds, due Dec. 15, 1968, callable
Dec. 15,
1963;. 1%% bonds due
June 15, 1948, and 7/g% one-year
saidj the 300,000 volunteers of the
War Savings Staff in every com¬
munity, intensified their efforts to
add at least 7,000,000 more in¬
public participation is essen¬
in
tial
the
interest
of sound
fi¬
nancing out of current income and
savings.
v
"After completion of this bor¬
rowing the Treasury does not ex¬
pect to do further major finance
ing until February. For its - new
money
needs
in January the
Treasury will rely upon further
sales of Tax Savings Notes, Sav¬
ings Bonds, and Treasury bills."
,
The
,
the
to
come-earners
ranks
ance
try, began soliciting on Nov. 30
subscriptions from individual in¬
vestors, corporations, savings and
the
Commercial
buyers,.
which
are
defined
for
porate or institutional.
"Sales to commercial banks will
be
limited
to
$2,000,000,000 or
Appli¬
thereabouts of each series.
cations from commercial banks iri
amounts
in
scriptiohs
issuj^i and no restrictions
basis;■
issuance excepting the tem¬
"All
to $100,000 will be
full, and larger1 sub-:
up
,
allotted
,
i
(
applications
to
others
from
banks
commercial
securities
The eyes of all
America are upon
equal percentage
on an
be
thus
issued
$4,000,000,000 from com¬
mercial
banks,
plus, the
full
amount subscribed by others.
,
the United States
Treasury Roll of
all
"For
Savings News
For
copy
write
War Savings Staff,
Treasury Depart-
other;
subscribers
of
classes
than
commercial
banks,
•
^rcs^!!
WM£M£,'
£.*fe^1wl,*»*"*
»u»»«»
Washing
D. C.
'
%Sm
_
subscription books will be opened
Nov. 30 for both series, arid will
remain open for several weeks.
For commercial banks- subscripr
tion books will be opened Nov. 30
on .the 1%%
bonds and will re*
main open Until the close of busi¬
ness Dec. 2,. while books wit! be
opened Dec. 16 on the %% cerr
ment,
ton,
■
VST.*-"**l^ffr
K^^jg§:
u
iw-
*""
js^cs
ggggjs
u*isuu*
UW"
V-1*!£, rr^r.r1ru---2
-
«KO»tU
ySs P^T'.-Sr:-
*
.■»««■»'■'",
"g"^*!^-r=
.
..sss^5^
__
,
11
Sr«3t2&S".
tificates and will remain open un¬
til the close of business Dec. 18.
rn^=i"£s«=S
i^fSC
In the Case of such bank
g*^Ss£
tejrss-rjSss-—
^
p6?S&S^,iJrS: SJ
will
the
be
Honor appearing
in
the : 'fpayroll
i
be
will
The total of these
allotted in full.
*-*
be
for
than
„,-^T
for
subscription by banks,
and also by all other classes of
investors, whether private; cor¬
,
upon
intended
securities will
These
suance.
open
as
of this
$100,000.
other investors:
as
(a) 1%% bonds due June 15, 1943,
(b) %% certificates of in¬
debtedness due one year after is¬
commercial banks,
Concurrently with the Decem¬
drive, Secretary Morgenthau
well
as
and
banks accepting demand
deposits, will not be permitted to
pose
said:
widest pos¬
banks,
pur¬
ber
The
tions from $500 to
"2.
Two
series
banks,
this
will
,
through the payroll savings plan.
The
following regarding the
special offerings, being sold under
the direction of the Victory Fund
Committees,
is from Secretary
certificates of indebtedness,
' mercial banks.
will be opened, Nov. 30,"and
Victory Fund Committees,
of well organized and
coun¬
commercial
remain open several weeks, The
bonds will be sold in denomina¬
of
insurance com¬ hold these bonds until ten years
There
panies, institutions,, trusts and es¬ after theVdate of issue.
will be nA limit' to the amount
tates.
V
Lcember available from hon-bankIn announcing plans for this ing investors, while the other half
financing, Secretary Morgenthau will be made available by corn-
own
up
fields throughout the
of
ownership for their
account.Subscription books
from
banks
those already investing regularly
in Series E War Savings Bonds
.
exclusion
porary
Morgenthau's, announcement:
"1, Twenty-six-year 214% bonds
expanding groups of 44,000 volun¬ due Dec. 15,1968, callable Dec. ,15,
teer workers, drawn largely from 1963, to be issued in coupon or
the securities, banking and insur¬ registered form at the option of
made
Thursday, December 3, 1942
.
subscrip¬
tions, payment for the bonds must
»••»■««
be made
Certificates
■
^g-aS^r^T: ^fflW
Dec.-
on
on
11, and for the
Dec. 28.
;
;
"The 1%% bonds will be issued
in coupon or
registered. forms, at
of the buyers.
The
%% certificates will be issued in
the
.option
coupon form only. The bonds- will;
be -sold? iri, denominations from,.
$500, to $100,000,• and. the. certifi¬
$1,000 to $100,"000. i
cates from
"The'm %. bonds,
;
and
LS of today, more than 20,000. firms of
all
Roll"
sizes
goal of
reached
have
at
the
"Honor
least 10% of the
ness
HOW TO
bearInterest; from ;that
date.^-Accrued
payroll in War Bonds. This is a glorious
testimonyj to the? voluntary American: way
of facing emergencies.*
"TOP THAT 10% BY NEW YEAR'S"
wi II
and
gross
btmd&
1
Jfe % "certificates of iridebtedr;
will be dated Dec. 1, 1942,
.charged;
on
interest will be
' all subscriptions for
which payriient. at a Federal Rer
serve Bank "or at~an
authorized
depositary is received later than
Dec. 1.
Out of the 13 labor-management conferences sponsored by
the National Committee for Payroll Savings and conducted
by the Treasury Department throughout the Nation has
come this formula for
reaching the 10% of gross payroll War
Bond objective:
1. Decide to get
10%.
It has been the
2»
Treasury experience wherever manage¬
ment and labor have gotten together and decided the
job could be done, the job was done.
Get a committee of labor and management to work out
details for solicitation.
a.
They, in turn, will appoint captain-leaders
men
chair¬
who will be responsible lor actual solicitation of
no more
than 10 workers.
b. A card should be prepared for each and
with his name on it.
'
C.
of
10% is achieved.
10%, others
3. Set aside
a
7-
Some
may not
be able to
set
or no
not
over
1
"Any bank
participation from the present total
employees investing
an
average of 8% of earnings to over
30,000,000 investing an average of at least
10% of earnings in War Bonds.
You
are
urged to set
your own
week.
payment
by credit
subscribed for its
that
company
its
of
for
own
customers
securities
account
to
up
amount for which it shall be
ified
in
excess
of
or
any
qual¬
existing
de¬
posits,'!;
sights
Chronicle 'Printers'
accordingly and to do all in your power to
start the new
year on the Roll of Honor, to
give War Bonds for bonuses, and to pur¬
chase up to the limit, both personally and
as a
company, of Series F and G Bonds.
(Remember that the new limitation of pur¬
chases of B and G Bonds in any one calen¬
on
trust
or
qualified to hold War; Loan de¬
posits will be permitted: to make
of around 20,000,000
:
Receive Award Front;
TreasuryDepartment
Herbert D.
Seibert & Co.,
Inc:,
printers
of "The Commercial &
Financial Chronicle"
and many
other
publications,
received
the
"Bull's Eye" Certificate of Award
from the Treasury Department. >
has been increased from $50,000
$100,000.)
The
TIME IS SHORT. Our country
be through a talk, a rally,
or just a plain announcement in each department.
Schedule
competition
between departments; show
progress charts daily.
Set as a goal the Treasury flag with a "T."
may
By
announce"
the drive and the drive itself.
The opening of the drive
be done.
raise
to
time between the
more to
January 1st, 1943, the treasury hopes to
dar year
can save more.
The drive should last
6.
worker
date to start the drive.
There should be little
ment of
$»
every
An estimate should be made of the possible amount
each worker can set aside so that an "over-all"
aside
4.
or
But there is still
award
was
to' the
made
employees of the above named
firm for investing more than 10%
is counting
of
you to—
the
gross
payroll
and
100%
participation in United States War
Bonds.
"TOP THAT 10%
BY NEW
This includes .memberg of
New
No.
York Typographical Union
6, New York Printing Press-
men's Union No. 51, copy-holders
and miscellaneous help.
YEAR'S"
Over-the-Counter Securities
Wertheim & Co., 120 Broadway,
{ New York City, members of the
New York Stock Exchange,' have
'
jUst issued
an
intm-lsting
outlining pertinen«acts
War
.eral;o'ver-the-cpufter
Savings Bonds
which
the
firm
circular
on
sev'-
\i s
s u e's
considers
offer
particularly attractive possibilities
Copies of this
1 circular may be had from Werat the present time.
theim & Co. upon request.
Volume 156
Number 4130
THE COMMERCIAL & FINANCIAL CHRONICLE
deposits ratio may come
but, for the present, it
The Secuiities Salesman's Cornei
again,
to be
up
is
Kansas
shelved.
SOME THINGS A BOND SALESMAN THINKS
large sense govern¬
obligations
are
diskless'
a
banking point of view is
from
Where
too
much—yet novel and practical.
when the cost
years
iellow
who
sold
was
no
object?
Remember those
mum
Wonder what happened to that
that
that case of supposed genuine imported Scotch
1929, that finally-went down the draip ;; . ;
lucky
that would have been a way to ruin a clientele.
•
•
:
Raining again
getting colder, too
gas rationing. Mar¬
ket is indecisive
what is going to-happen to the rails
'.-. are
they over their peak
wish some one would give me a good sit¬
uation I could "get hot" about. Seems as if some of the
Congressmen
are
regaining their courage
j telling the bureaucrats off
funny how everything works in cycles,.
just like the market, or
styles, or fads
one extreme to. the-other
;.
up and then down.back
in
est will be offered
...
.
.
.
.
Our
.
,
.
.
..
...
This
to
seems
.
be the biggest lesson of all
thair all the
'
-
.
7
.
.
life teaches you
,
.
will
.
.
.
.
swing back again
the war will be over ".
maybe some¬
no longer be dishonorable and unpatriotic to make money
;.
Wall Street .will, rise tin public esteem
feel more
.
.
.
.
.
there
.
.
smiles
from
bonuses,
you used to
.
.
.
.
..
.
.
how little you knew
.
.
how little your customers knew
;
how
all-fired greedy most of them were
the fellow with the margin
..,
.
...
account who said
sand
he'd
be
.
.
satisfied when
he made
hundred
a
thou¬
his wife told him stories she heard at bridge games about
;
he believed them
you didn't ..; "Button Up
Your Overcoat"
Shubert Theatres at 84
Majestic Radio
.
.
.
.
.
.
.
.
every
substantial
securities
.
.
.
.
.
,
.
.
.
...
.
.
.
.
.
.
,.
.
.
the way home
birthday/.
,
.
Stop
phonograph for the kid's
.
check prices on a
wonder about those price ceilings
.
.
.
.
.
,
.
all
.
,
he
.
.
Individual
in
.
that's how bureaucracy works
so
.
to
urge
get
aboard
current
the
nancing, bandwagon
minimum of delay.
Four
.
"...
There goes the telephone '. '. must be the wife telling me to
get the milk and bread on the way home
well, cross the fingers
anyway
maybe it's a customer
hello!.!
it's the wife
.
.
.
;
.
get it
.
she
and
.
.
...
.
.
the
wants
break
and
.
milk
it's different "over there"
.
thankful
...
we
still
can
long.till next week. V
so
..
.
.
.
best?v. •'...v.;vV"".
In this
Slocks ////||
(Continued from page 1966)
laws, rediscount privi¬
leges are sufficiently broad to
eliminate the necessity for com¬
petitive selling of bank invest¬
ments at any time.
Thus there is
likelihood
deflation
took
as
of
of
cumulative
a
banking credit
has also been
tendency,
growing
the part of supervi¬
on
a
agencies in recent
sory
such
place from 1929 to 1933.
There
between
differentiate
years,
what
to
^re
termed fluctuating.assets and non-
fluctuating assets.
Some queru¬
lous quibbler may take issue with
the
of
idea
but
asset
tinction
is
"non-fluctuating
a
the
intent
of
the
dis¬
clear
enough — and
eminently sound in principle. Ob¬
viously, there is a vast difference
between
a
in
the
editorial
Wall Street
banking
little
remarks
Government Bond and
T
the
general
trend
of banking
definitely in
the direction of public credit and
away from private credit. Accom¬
now
very
to
nature
primary
liquidity
as
of
of
the
with
rapidly being converted, to a
large extent, from a heterogen¬
eous
collection of individual obli¬
of
surplus
an
are
insurance
in
fund
the
is to protect the
purpose
of
whose
reserves
deposits.
Inasmuch
risk to the bank,
gust
and
for
the
of
"Big
the
group.
$460,000,000
of
account
the
existence
Deposit
*
of
Insurance
the
Cor¬
in
•
Danielson
of
the
to
Shattuck
and
$168,000,000
contrasting
First Federal
•
First
Pryor Street, N. E., Atlanta, Ga.
39 Broad
a year
preceding
period of the
same
year.
•
First Federal
Hollywood Blvd., Hollywood, Calif.
should
Fletcher Avenue Savings and Loan Association
•
Franklin
•
Hinsdale
•
Mutual Building and Loan Association of Pasadena
150 East Market
provision
Act
in
allowing
spurred
the
New
profits through
cess
on
38
•
too
the
new
late
to
permit
issues
on
on
medium
Tax
•
•
action
as
this
philosophy,
predicated
upon
however,
is
the existence of
of
condition which is quite abnor¬
point.
and
a
strictly banking view¬
That-condition
in
is
a'fact
the
light of that fact the
philosophy is, doubtless, sound.
How long the fact will continue to
a
fact
we
do not know.
know that government
must
continue to be
banks in
war
lasts
normal
So
so
long
as
the
front
the
wit
When
being what they are, who can say
tion
of
of
the
the
stage
man
to
comes
-
that
is beyond
the
ques¬
capital-and-surplus-
which
to
•
Prospect
11th Street, N.
Federal
16 West Third
Federal
1707 West 47th
sponsoring
reported
loose ends
gathered
people
their
now
that
Street, Winston-Salem, N. C.
Savings and
ex¬
the
remained
to
embracing
those
who
certificates,
or
•
San Francisco Federal Savings and Loan Association
•
Second Federal
•
Standard Federal
705 Market Street, San
a
real
reliable
turned
out
of
volved.
success
campaign has been
was
estimates
in
around
the
indicated
placing
stock
Union
Savings and Loan Association
Marquette Ave., Minneapolis, Minrf.
Federal
Washington
629 F
by
123,000 shares
127,000 shares in¬
Street, Chicago, 111.
Savings & Loan Association
Market and Delaware
•
•
Francisco, Calif.
Savings and Loan Association of Chicago
735 South Olive Street, Los Angeles, Calif.
Twin City Federal Savings and Loan Association
801
•
lost track of their investments.
But that the
free
St. Paul Federal Savings and Loan Association of Chicago
2116 West Cermak Road, Chicago, 111.
be
or
Road, Chicago, 111.
informative booklet.
lost
died,
Chicago
•
such
had
Association of
Quaker City Federal Savings and Loan Association
1427 Walnut Street, Philadelphia, Pa. — Write for
•
in,
as
Loan
Street, Chicago, 111.
•
Dec.
the
W., Washington, D. C.
Savings and Loan Association
Reliance Federal Savings and Loan Association
holders
only
111.—Write for free
•
3960 West 26th
Bankers
Street, Oak Park,
Piedmont
exchange which has been
change
as
determine.
in
under way for weeks.
commercial
that time
of
of
war
banking
processes must play a subordinate
part in the whole banking opera¬
tion.
When they will again take
extension
of
-
•
end of interest in the progress
no
by
long
the
the
time
Association
Savings and Loan Association
Marion
Perpetual Building Association
con¬
Empire Gas & Fuel Corpora¬
tion preferred
stocks for 3V2'%
sinking fund debentures aroused
obligations
large volume
lasts.
of
of the
We do,
taken
North
booklet.,
so
-
News
15
Loan
and
Avenue, Minneapolis, Minn.
1904 West Cermak
is
Savings
•
which the
Empire Gas & Fuel Exchange
of view of
"This
823 Marquette
104
exercise
year
Federal
Oak Park Federal
Bill
privilege had expired, that is
cerned.
Avenue, Hinsdale, 111.
Avenue, Pasadena, Calif.—Write for
booklet, "Profits and Prophecy."
Northwestern
500
came
of
Street, Richmond, Ya.
Savings and Loan Association
South Los Robles
free
ex¬
of debt retirement.
Passage
Federal
8 East Hinsdale
Revenue
the
Street, Indianapolis, Ind.
Savings and Loan Association
Minneapolis
by the
10% refund
a
Federal
616 East Franklin
«
be
Savings and Loan Association of St. Paul
Street, St. Paul, Minn.
•
'
However, the trend in that di¬
rection
St., Durham, N. C.
First Federal Savings and Loan Association
fore maturity thus far this
year,
only about a third of the total so
retired in the
Savings & Loan Association
•
ago. \
brings to approximately
$900,000,000 the total of debt re¬
deemed by corporate issuers be¬
Street, Charleston, S. C.
Federal
350 Cedar
'
Blvd., Bevedy Hills, Calif.
Savings and Loan Association
124 Market
•
Conn.—Write for free booklet
•
with
This
Savings and Loan Association
9501 Santa Monica
in
years,
Federal
First Federal Savings and Loan Association
6763
nine
Avenue, Berkeley, Calif.
•
an¬
Calling of bonds for repayment
advance of maturity dropped
off to approximately
$56,000,000
last month, the lowest in about
Street, Salt Lake City, Utah
First Federal Savings & Loan Association of Atlanta
46
■
action.,
nounce
East First South
•
same
first. corporations
Savings & Loan Association
84 Main Street, Danielson,
and information.'
May
the
op¬
.
Chicago Federal Savings and Loan Association
poration lessens the importance of
capital and surplus from the point
liquidity.
war
trac¬
2.11 South La Salle Street, Chicago, 111.
Meanwhile, the Public Service
Corporation of New Jersey placed
its subscription for a block of
$5,000,000 of the new issue, being one
far
Also
of
tion companies.
•
new
/
ished.
?
problems
Berkeley Guarantee Building & Loan Association
Bonds,
against
purchases of $455,000,000 in Au¬
of the call
Federal
post-war
•
17
a
Victory
the need for
capital and
surplus relative to
deposits is correspondingly dimin¬
gations to a single claim on all the
assets of all the people. .Conditions
and
conditions
"Chicago Sun," discussing the
and
please mention the "Chronicle."
so
2101
so-called
$680,000,000
21,4%
sum
obligations -now
constitute the main body of bank¬
ing investments and are devoid
the
are
to
seem
government
credits, real estate loans and gen¬
eral commercial borrowings. Thus
the banking assets of the nation
large
Bond
of
constitute
be
the
Government
"The
incurred by the bank in its loans
and investments.
They also help
increases in
holdings and
V-loans is a sharp contraction in
"Other
Securities,"
instalment
panying
of
designed primarily to protect the
security of deposits against losses
mal from
is
capital
normal
a
The
Journal,"
"Banking
under
real estate operator.
assets
columns
this matter up very quotably:
fourth-grade railroad bond just
as there is little in common, quali¬
tatively speaking, between a Vloan and the IOU of a shoe-string
a
\
connection, the following
which appeared recently
on
investors/ trustees and other* fiduciaries interested
November Calls Small
Bank & insurance
together
article
tractions, which appeared in the
American
'
that this may not work out for the
Co.,
an
•
.
•'
.
&
reprint of
explanatory literature to the associations mentioned below.
doing
fi¬
war
and
Five" insurance companies alone
entered subscriptions for a total
...
...
profit?????
cir-
a
portunities offered by savings and loan associations should write for
.
and some
believe that governmental control of our economic life will work..
how would the SEC describe this sort of a deal
unconscionable
.
interesting
Kneeland
with
becoming acquainted with the Federally insured investment
When
should
recourse
this
from
Investment Funds
Insurance companies and corpo¬
rations
alike
are
showing full
...
other
of
cular, which is available to dealers
only, may be had upon request
of funds available for
sources
...
.
GEORGIA
cognizance
Pushing Toward the Goal
.
he asked the OPA what he should do about it
.
him
ASSOCIATION
ATLANTA.
A Safe Haven For
taking
investment. Bonds, notes and cer¬
tificates provide a wide choice of
selection.
.\
they
bring suit against the gypper who overcharged
him
then he would have to subpoena the OPA and they would
bring the price ceiling figures into court
he didn't have any
told
LOAN
OF
a
.
apiece
loans; ratio of earnings
price; income taxes,
market
one recent
venture, the
Treasury this time keyed its of¬
ferings in a manner to appeal to
he paid $20 for two electric heaters
thought he was overcharged
so he called the OP A;
He was
? they were only worth about $3
.
AND
of at least
.fellow told.me
.
RFC
Copies
success.
Presumably
*
FIRST FEDERAL SAVINGS
Treasury, and
indication that
,
National City 500
the wires
the tips .; .
the deals
Mellon said, "Buy Governments."
Better get to work
make some calls
everyone is bet¬
ter off working than sitting around
.
even bond salesmen.
on
new
.
big profits
.
was
other
the
.
party to another).
under your own power—
until
that girl you used to know and didn't marry
what a
big shot you thought you were with those 1929 commission checks
one
and
by
labor
which should be very little if any
in 1942 because of prior losses.
each
;
Street
eggnog and fruit cake in New Orleans and
...
walk
with
the selling campaign would be
.
certain of it this year than for a long time.
Old fashioned Christmas parties in Wall
into the
place the nation's
offered
day it will
again
competition
bonds
war
.
.
in
CERTIFICATES
under
relationship (em¬
ployees
participate
in
net
in¬
come); large monthly retirement
versus
other to
.
of
Fifteen
field
more
fancy talkers
you-learn about these things in this
business; The laws of economics and of human nature keep on work¬
ing
funny how you gradually get the longer view
things
is
excellent
of
swept
according to a
by Kneeland &
RFC supervision;
debt; modernization
equipment started years ago;
(Continued from first page)
teams
INVESTMENT
small funded
Reporter's
Report
....
INSURED
Public
preferred
most attractive
ment
•
.
5%
pleted; the company serves a de¬
fense production center; manage¬
...
..
City
ings for this security should ex¬
$8 per share; unlike many
tractions and rails, reorganization
of the company has been com¬
such loans."
on
Company
possibilities
Kansas
ceed
of 10 years, and
maximum rate of 2% inter¬
me
Christmas,
and
by
Service
Co., Inc., Board of Trade Building,
Chicago, which states that earn¬
maturity
a
prospects
offered
are
Treasury policy with respect
to its borrowing. from
banks is
that
they should confine their
purchases to bonds with a maxi¬
Must order those Christmas cards again. Wish some
one would give me an idea of a different sort of Christmas remem¬
brance for a change.
Something I could send to everyone that
City P.S. Attractive;
circular prepared
The
did the' days go?
wouldn't cost
The
of course true, where
they can be
held
to
maturity
with
proper
amortization of premiums
paid.
ABOUT AT THIS SEASON OF THE YEAR
Can it be that Pearl Harbor happened almost a year ago.
1971
The Future Of Tractions
"That in the
ment
<
Wilshire
461
Permanent
Streets, Indianapolis,'Ind.
Building
Association
Street, N. W.", Washington, D. C.
Federal
Savings and Loan Association
South Western
Avenue, Los Angeles, Calil.
♦Guardians, insurance companies, State,
firemen's, police and other pension funds, etc.
school
and
municipal
tinkkag
\
funds,
(Continued from first page)
,V
selves but
stitions
.
Thursday; December 3, 1942'
people are not iconoclasts as they label them¬
political necromancers; manufacturers of super¬
a quantity basis; superstitions whose decalogue
the extinction of truth.
They are masters-of-
These
HOW DID WE DET THIS WAY?
,
CHRONICLE
THE COMMERCIAL & FINANCIAL
1972
on
commands
bonds. which
should,
sound ' irrespective of the'
prospect for a long or a short war.
bankrupt
prove r
*
*
*
We
much
are
impressed
by elements of fundamental longterm strength in the railroad pic¬
dictatorship by another name.
The idea seems to be in¬
ceremony at a fandango of foolishness—tirelessly vocal—
ture, quite apart from temporary
digenous to the "class-conscious wearers of spats" who call
Wartime prosperity.
We believe
themselves liberals.
The dogmatism of a minuscular mind dribbling with assinities. Their antics resemble those of a
blind man in a dark room, frenetic by reason of his own that, while many poorly secured
is beyond understanding.
second-grade rails are dependent
The steps by which mankind advanced from barbar¬ futility, trying to catch a black cat which is not there.
for their present price structure
Communists assume that a man has a right to destroy on flush war earnings, most of
ism: to civilization; from want to plenty; are not difficult
that which he cannot produce, understand, or enjoy so that the; senior second-grade rails are
to understand.' Until they are understood and appreciated
no
other man may have more and thus be reduced to selling at prices which discount
by masses of men who aspire to equality and self-govern¬
no, element of special prosperity,:
equality.
Drab people are never happy until they have and purchasers, are thus' well for¬
ment,-with ignorance and envy the matrix of their aspira¬
made everyone else drab.
Shakespeare understood their tified against future adversity." '
tions, civilization rests upon an inverted pyramid and a
psychology when his gardener said to his assistants: cataclysm is inevitable.
,
;
v
is
In
a
state
scattered in small
of barbarism, men were
large expanses of territory.
They lived
from hand-to-mouth, starving; or feasting as the hunt suc¬
ceeded or failed.
Each man supplied his own needs di¬
numbers
,
\
"Go thou and like
-
an
executioner,
\
growing
Cut off the heads of too fast
over
*
That look too
All must be
•■. * -
in
'
government."
our
New Post With WPB
;;U
lofty in our commonwealth;
even
To
;
sprays,
\
<
The War Production Board
There is nothing more absurd than the rigid and styl¬
rectly; made his own weapons; killed his own game; un¬
able to provide for . tomorrow because of his inability to ized contentions of Laski that "communism wins its way
store up a portion of his labor, which is but another way by its idealism, its spiritual promise and not its materialistic
of saying to acquire wealth.
Even under these conditions, prospects."
■
v
'
the standard of living varied with the capacity of the in¬
dividual, although originally the human species can have
presented very few deviations from the norm of intelli¬
gence.
No one knows how genius received its initial mo¬
mentum.
It is not even latent in most of us.
Man's first upward step came with the acquisition of
skill, which did not come to all in equal quantity or quality.
It came as the result of some inborn element; some ex¬
Holds Peak In Prime
pression of the composition of the protoplasm ,of the cell;
plus perseverance, toil and sacrifice. One man "had what
it takes" and others did not and that is all there is to it.
prosperity of the fittest is not a man-made
abrogated by man. It is a primary
law of existence, against which the statute of limitations
does not run.
To assume otherwise is to, place dream
and chimera on the same plane as factual evidence; to deny
The law of the
law and it cannot be
facts. Any attempt to create a society
this law will be wrecked on the rocks of
reality.
No other conclusion is possible from any rational
appraisal of human potentialities.
Following increased. skill and the improved imple¬
ments which resulted, came the next step forward; a step
which more fully enabled all men to participate in the re¬
sults of the superior genius of the few.
This was the devel¬
opment of the division of labor;
Instead of each man pro¬
ducing his own requirements, gradually one man began to
create one type of article, or perform a function, and hiff
neighbor another type. ' Their efforts were guided by their
natural ability to do some one thing better than some other
thing. Their success was measured by their determina¬
tion to improve their capacity.
'; * ■ :: ! v:
/ : A
vV;',- Then, as now, and as it always will be; the articles
which required the least aptitude; the least training;, which
could be produced by the greatest number of men with the
least overall effort, provided the least reward.
The greater
the quantity in proportion to the demand, the less the value,
is a law which applies to the attributes of men and which
cannot be repealed by popular assemblies.
It is inherent
in the intricate web of motivation which lies at the base
of all human actions.
To maintain otherwise is to totally
misread history, to misconceive man and to misunderstand
the genetics of progress.
The division of labor finds its closest approach to per¬
the
potency, of
which ignores
,
.
capitalistic economy. Here labor of all grades
combined with capital of all types—accumulated labor
fection in
is
a
need. Sym¬
parasitism is the
characteristic of capitalism. Economic power is the ability to
extract froifi nature the products men desire.
There is no
—to
permit the production of the things men
biosis, mutual interdependence, and not
inherent
conflict of. economic
interests,-only
a
rivalry of
abilities.
<
in the
inability to understand this lies the fatal defects
teachings of Marx, Engel, Lenin
in the morbid and macabre
■and
Trotsky; in the inane and inaccurate
preachings of the
Donald M. Nelson in order to con¬
nand
man.,',''
<
end, and while it will subside
slowly, nevertheless for the
first time in a decade it is pos¬
sible to foresee its future termi¬
nation. We believe this is a most
i. e.,
very
of
does,
fear
-
in
the
into
the
of course,
category of longabove,
speculation.
the
that
For the dura¬
quite cer¬
has
government
to main¬
high prices, especially for its
bonds.
We further believe
than ample powers
will
it
that
We
this end.
market.
these
use
powers
to
to ex¬
see no reason
early change in the
present level of bond prices.
"Furthermore,
looking
ahead
towards the. post-war situation,
we believe that the banking sys¬
tem will be so heavily involved in
pect ' any
and
:"r'
•
<
-
will
take strong meas¬
protect
against
the
winning
On the contrary, we can
war.
principally foresee in these argu¬
ments
additional
reasons
why
both nearlong-term, are distinctly
government
term and
more
bonds,
attractive
than
other
any
category of high-grade bonds.
"Thus
the
government's
post¬
in¬
With
branches
industry divisions,
enlarged'
of
powers
esti¬
to
change
previous policies,
added:,;-
•
-"The WPB
Requirements Com¬
We continue to believe mittee which divides the coun¬
that near-high-grade corporates— try's
materials
among
various
that is to say, those which com¬ needs will have 36 small counter¬
mand
premium prices and are parts, one assigned to each indus¬
generally considered' "good' but try division.- .Each of these "subnot 'primeC—should be avoided by requirements ^committees'
will
all classes of investors; .-This is have a spokesman- from each of
the department of the bond mar¬ the
seven
'claimant • agencies,!
ket which can be relied upon to which
seek
supplies — Army,
create the most future trouble. In N a v y,
Maritime
Commission,
as
follows:
"(a)
.
times of stress these items do not
and many of them lose
investment rating "perma¬
hold
up
their
nently.
income
to
compensate for a sure
.
pensable means towards
36
dustry branches.
departments of the mating the: materials needed by
bond market other than the high-:. each industry and controlling the
It
is
grade department, we see no rea-;; allotment;> of 1; materials.'.
institutional in¬ percentage of casualties.
"(b) Prior to 1938 we main¬
vestors
depreciation in
their government bond portfolios. tained a fixed policy of selling all
Thus we can see, in these present outright second-grade rails. In the
arguments, no
valid reason to spring of 1938 we reversed this
avoid U.
S. Government bonds, policy
and suggested that the
which, in fact, must be bought by price structure was too low for
financial institutions as an indis¬ liquidation and that while such
to
ures
WPB's
(b) A trans¬ »;This move,.said.the Associated
S. Govern¬ Press, was /accompanied by the
-Nevertheless,-they are
usually
bought
at
'near-highgovernment securities that at that grade' prices and therefore there
time any government ■ in power are no offsetting profits or large
must
of
"As to those
son
of
tion of the war we feel
own
each
advise
to the status of
"All
tain
U.
industry,
spokesmen: from: every
to
com¬
of labor
up
elevation of the industry■
bond prices.
more
into
advisory
made
ment securities from all other de¬
effect,
result
will be a long-term downtrend in
high-grade long-term corporate
tain
funds
labor
mittees, to. be
partments of the high-grade bond
chology
range
half the cost in 1940.
created
son
money
on
diminish progressively, the
falls
8-year maturity is today less than
of
Director-General for Oper¬
directly under. Mr. Eber-.
stadt in the WPB high command;
Simultaneously, Chairman Nel¬
We believe that if the psy¬
fundamental influence
rates.
(a) A reduction of maturi¬
very long to medium,
from
4 to 8 years; the cost • of a
change from 20-year maturity to
fer
,
ations,
suggest long-range policies as foP
an
was
given
Vice-Chair¬
zler,
(Continued from page 1964)
ties
who
their
Ferdi¬
" " " '■/ ,[ ')
placed Ernest Kan -
/■■/'■■■
The change
psychology of fear which has
for ten years determined invest¬
ment policy, is by no means at
lows:
under
of program
■
and
materials
Eberstadt,
title
the
responsibility. for the
of
distribution
actual
Corporate Bond Prices
the
all
centrate
allocation
Has Now Been Reached
;
was
recently reorganized, by Chairman
...
bonds should be treated
selective¬
ly, sweeping liquidation programs
were
not advisable.
We consid¬
that
ered
the then prevailing
at
prices, the probable income to be
received offered good compensa-r
tion for the risk of postponing
liquidation,
and
substantially
cases
in
many
higher
liqui¬
that
Lend-Lease Administration Board
of
Economic
Aircraft
Warfare,
Scheduling • Unit' and the- WPB
of Civilian Supply."
\ r
.
Office
Banks Urged To Garry
Share In War Finance
-
While
their
program,
the
of
the
lauding
for
banks
financing the war
Allan Sproul, President
part
in
Federal
Reserve
Bank
of
York, urged on Nov. 20 that
the banking institutions appraise
New
their
positions
of cur¬
than past prac¬
in terms
rent events rather
tices in order to see whether they
are
assuming "their share
of the
load."
Speaking before the mid-year
and banking conference of
trust
the New Jersey
Bankers' Associa¬
tion, held at the N. Y. Reserve
would, in the long Bank Auditorium, Mr. Sproul said
run, be Obtainable.
We continue the banks had a two-fold respon¬
to hold this opinion of the secondsibility, in war financing, helping
types.V, of
long-term' • high-grade grade railroad bond market ill the Victory. Fund Committees sell
bonds such as
corporate bonds general and believe that regard¬ Government bonds to others and
and'municipal bonds. It is prob¬ less of peace or war many second- being sure that they were doing
able, therefore, that at some such grade rails continue substantially their share in buying governments
and
reward
the for their own account. In the New
future period a wide difference in underpriced
yield will develop, with prime holder adequately through large
obligation to protect institu¬
tions frOm any losses on its own
bonds need not extend to other
war
dating values
York
"Times,"
Mr.
Sproul
was
income for the continued risk of
neurotics, Jean-Jacques Rousseau and Leo Tolstoy; in the corporates and other non-govern¬
quoted as saying that the "gigantic
ment
We sug¬
obligations
selling at
a postponed liquidation.
financing program announced by
maudlin and maculate mouthings of the paranoiacs, Proudheavy discount
below
govern¬ gest that all emphasis should be
the Treasury for December will
lion, Barbeuf, Bakunin and Sorel; in the rantings and ravings ments of similar maturity.
put on selectivity between the in¬
call for a maximum effort."
The
dividual
issues.
"To
sum
of the inebriate, Jack London, and in the intellectual mire of
up,
the foundation
same advices stated:
"(c) An exceedingly small per¬
upon which we have maintained
other' innominate social pariahs and excretions.
""Under the leadership of the
for years our confidence in long- centage of our customers can le¬
The psittacine disciples of these and other "limited
Victory Fund Committee of the
term bond prices has now been gally or prudently buy secondNew York Federal Reserve Dis¬
lovers of mankind" are still crusading against the divine partially undermined. There is a grade rails, and so we have never
felt called upon to adopt a def¬ trict, he said, every effort will be
right of kings while, with a purblind fanaticism which re¬ prospect that such deterioration
made to sell as many securities
investment policy on this
will continue. It should not affect inite
veals the weakness of their case, they advance the demon¬
outside the banking system as
In general, however,
government
bonds
because
it question.
strably absurd theory of the divine right of the proleta¬ must be a matter of national pol¬ where risk investments are legal possible. But, he added, it will
.
,
the motley misfits who compose the
dregs of every culture.
What they advocate is the elevation of the social resi¬
duum or dross; the creation of a Utopia through a regnant
riat, the declasse and
proletariat which is supposed. to
through some sort of a cabalistic,
qualify for its. destiny
sqcial osmosis, /
icy to protect such holdings and
to
maintain low
rates
to
finance
and refinance the Federal deficit.
This
not
protection,
be
however,
extended to
need
other classes
of-high-grade bonds.
"From
the
above,
and
prudent,
various
would
as
in
and
the case of
estates which
customarily hold common stocks,
we
believe that excellent values
are
still obtainable in the
second-
rail market in highly se¬
lected senior borderline and senior
grade
we
funds
also be the
tee to
see
duty of the Commit¬
to it that banking sup¬
port of the program is evenly dis¬
tributed.
Every bank, he added,
must assume its share of the bur¬
den
by
b u y i n g
amounts for its
own
substantial
account."
;
*
Volume 156
Number 4130
THE COMMERCIAL & FINANCIAL CHRONICLE
1973
"'■■I'
S
Tomorrow's Markets
Walter
PLAYS
"The Pirate/' Alfred Lunt and Lynn Fontanne in
S. N, Behrman.
Presented
a
Whyte
play by
new
by the Playwrights Co. and the Theatre
Says
Guild at the Martin Beck Theatre, N. Y.
Cast includes Alan Reed,
Winwood, Clarence Derwent, James O'Neill and others.
Staged by Alfred Lunt and John C. Wilson. Sets by Lemuel Ayres.
Estelle
The Lunts have
a field day in one of the
extravaganzas of the
rightly called a. play.
It's part vaudeville, part
comic opera and the rest a burlesque of a
high order.
Alfred Lunt
pulls rabbits out of hats, juggles things and even hoofs a bit.
meets and falls madly in love with the Senora
Manuela, a perfectly
It can't be
season.
respectable
Market hints
term
near
rally,
Peace and tax talk
superficial
and not sufficient cause for
married
present bearishness. Two
stocks recommended.
lady whose only departures from the path of
ones.
Lynn Fontanne, as the' lady in the
the beautiful Manuela, managing to look younger than ever,
meets his advances, archly, haughtily and
mockingly. Through it all
the^ music pokes fun., and the high-flown verbal
passages delivered
virtue have been mental
new
case,
By
Last
in round
swashbuckling language of a Dumas character with touches
Runyon keep the story on a light amusing level.
Plot
concerns
itself
with
a
strolling player in 19th Century Santo
Domingo who meets a lady of station. She, bored with her marriage
to a fat, middle-aged bore, tries to overcome it
by reading tales of
Her hero of the moment is a pirate, Estramondo.
derringdo.
The
of
common
Damon
Of course his arrest is short for it turns out that the
the famous Estramondo.
The
production
is
lady's husband
magnificent.
The
costumes and the settings are brilliant.
Yet, if "The Pirate" didn't
have the Lunts to carry it, it would just be another one of those
things.
':\v-
■:.
"•
■'
V; '
.
"The Great Big Doorstep," Dorothy Gish and Louis Calhern in
a
new
comedy by Frances Goodrich and Albert Hackett.
by Herman Shumlin at the Morosco Theatre, N. Y.
Here
is
Presented
light,
a
unpretentious comedy which is a
delight
A sort of "Tobacco Road" with shoes on, it tells of a
ditch digger, who prefers to call himself a
Drainage
throughout.
lazy man, a
Expert; his wife,
summer
there
was
talk how the market
couldn't
"logically" go up as
long as the war was going
against us. The market, we
were
told, was waiting for
ragtag player, to excite her interest, boasts of being the pirate. Her
husband notifies the authorities and the boastful
suitor, is arrested.
is
WALTER WHYTE
victories
to
feed
on
and
SCHENLEY ROYAL
strength would be seen until
got them. So, to show its
contempt for public; belief,
the market, then around 100
(Dow), started up anyway.
when
a
trend
Schenley Distiller! Corporation, N.Y.C.
no
there
this
is
to
we
Then
RESERVE, 60% Grain Neutral Spirit!.
BLENDED WHISKEY, 86 Proof.
seemed
established, with the averages
advancing to about 117, the
Every
say.
fect
is
taxes
overrated.
and
Not
that
getting the funds
together to pay them doesn't
affect the market, but to
say
tax selling, whether for that
pendulum of popular opinion reason or for
establishing a
swung to the other extreme. tax
a bedraggled slattern with a double-edged
tongue,
loss, is largely responsible
and their flock of
"It
couldn't
children, all live together in a ramshackle hut on
go down because for current dullness
and de¬
the Mississippi.
The river has thrown up an ornate doorstep which
." and then you had
your
the family put in front of their home.
clining tendencies is over¬
From then on it's a problem
pick of a lot of choice reasons.
of getting a house to fit the
elegance of the doorstep. A house near¬
simplifying the causes.
All you had to do was to
by is to be foreclosed and all the family needs is $60 to
pick
The fact is that despite ac¬
get it. The
the one you liked best.
problem is to get the $60. A mooning swain of the youngest
V
daugh¬
tual inflation, prevailing gov¬
ter promises the
money but meets with an accident.
A brother of¬
Well, the market did go ernmental
fers his check, which bounces.
regulations make
How the sum is finally gotten is the down.
And not' only did it
crux of the story.
investment not only for profit
Louis Calhern, as the lazy, shiftless husband, is
disregard all the carefully but as inflation
first rate. Dorothy Gish, as his wife who fears the
family is breaking
hedges as
up, is excellent,
The rest of the cast turn in equally good perform¬ worked out "reasons" but also
well, far from the simple
ances.
'•V,v 'v.
■■■"■:. .■*'*
paid just as little attention to
i
i
:
thing it once used to be.
"Yankee Point," Edna Best and John Cromwell in a
play by the war news which began to
Gladys Hurbut.
Presented by Edward Choate and Marie Louise
report victories instead of
No one, for example, knows
Elkins at the Longacre Theatre, N. Y.
With Elizabeth Patterson,
".
retiring to previously how new
Dorothy Gilchrist, James Todd, Arthur Aylsworth and others. Staged
government plans
fortified positions,"
by John Cromwell.
or decrees will affect his busi¬
.
•;
.
.
,
.
❖
Last
the Nazis landed
.
*
*
ness.
And to put cash into
mystified another man's business (se¬
"Yankee Point" who discover and
by the whole thing, began curities) when faced with so
first two acts are well played and seem credible.
The family, rep¬
casting around for new rea¬
resentative of any middle-class American
many uncertainties: in one's
family, lives on Long Is¬ sons. It
finally hit on two.
land. The mother is an air spotter. The
own business is
father, a school teacher who
just'too much
The first was the possibility
fought in the last war, has been offered a non-combatant
to ask of human nature.
commission,
and called up for this war.
of an early peace. The second
One of the daughters is all mixed
up
You've already read some¬
trying to recall her father's pacifist ideas and unable to reconcile was tax
selling.
To justify
herself to the change.
thing of the British Beveridge
Another daughter is engaged to an Army
the first reason the so-called
flier.
And a crochety
housekeeper, who has been with the family
plan. Don't be surprised if a
war stocks
for generations, is a hypochondriac. Such is the
began to go down, similar
family, when on the
plan is suggested here
eve of the father's
departure, a German Army coat is found buried while the stocks of companies
by Roosevelt. It isn't simply
on
the beach.
From then it's a hunt for the
with peace
spies mixed in with associated
time a
conversation about life in case the coast is
question of whether the
invaded.
Well, the in¬ business started
going up.
vasion occurs. There is a lot of fireworks set off.
plan (involving an annual ex¬
Searchlights comb
* ;•
*
the sky, but finally the invaders are
fought off. The last act is given
penditure of $2,000,000,000)
over to pure and adulterated
Now I don't know if the
melodramatics and seem to have been
will help bring about this
tacked on as an afterthought.
■■...»
war will end
tomorrow, next "world of tomorrow" we read
month, next year or 10 years so much about
MOVIES
today. But it
^;■"
from today.
I doubt if any¬
"You Were Never Lovlier"
certainly will have a disturb¬
(Columbia) co-starring Fred Astaire
body else does. Lloyd George,
and Rita Hayworth with
Adolph Menjou and Xavier Cugat and his
ing effect on markets. The fi¬
British Prime Minister dur¬
orchestra.
A pompous South American
hotel magnate refuses to
nancial mirror, the stock mar¬
hire Astaire. He does later.
Astaire gets mixed up with hotel own¬ ing World War I, admits that
ket, reflecting all these con¬
er's daughter, Rita Hayworth.
First they love each
other, then they he didn't know about condi¬
ditions, acts accordingly.
don't, and finally they do again.
One dance Astaire does is tops. tions inside
*
*
Germany which
The rest you have seen before.
summer
coastline.
The
a
play deals with
group of saboteurs on
our
East¬
The rank and file
family living on a mythical
capture one of these Nazis.
The
a
or a
year
cur¬
rent market is in disfavor.
It
therefore is the time to look
around
and
buy.
are a
stocks
what
see
stocks
This doesn't
are
mean
buy • because
they're lower today than they
a
last week
were
or
last month.
A
cheap stock may be a lot
cheaper tomorrow. Yet, with
the
overall market picture
being what it is, the pessimis¬
tic
outlook
which
to
seems
have
gained new followers is
not, in the opinion of this col¬
umn, warranted.
*
*
■
.
ern
market six months
a
at this time tax selling from today.
appears.
But as usual its ef¬
It is admitted that the
year
A
few
*
weeks
everybody
was
ago
when
wildly bullish
you were told to either sell
half your lines, put close
stops
on the
remainder, or sell the
complete line. Well, you know
what
happened since. The
only two stocks you now hold
Air Reduction at 30 with
are
a
stop at 35, and International
Harvester at 43 with
49.
•
a
stop at
;
With the averages
hovering
between 113 and 114 I think
the
market
make
a
is
beginning to
base.
new
So I sug¬
gest buying two more stocks
at specific
prices. These are;
a
Goodyear 22 to 2214 with
stop at 21. And Superheater
1214 to 1314 with
a
stop at 11.
you'll get both of
these right away. But I don't
I don't think
believe
the market will
run
either.
away
*
*
,
More next
*
Thursday.
*
would lead him
The New York Stock
has
announced
the
Exchange
following
The Penthouse Club
30 CENTRAL PARK SOUTH
Adjoining The Plaza
weekly firm changes:
Transfer of the Exchange mem¬
bership
of
Richard
H.
Moeller,
partner in R. Swinnerton & Co.,
which
ber
will
It
will
continue
as
a
firm, to J. C. Herbert Bryant
considered
be
on
Dec.
is understood that Mr.
will
mem¬
act
as
an
A
a
most
unique restaurant in
beautiful location, overlooking
Central Park
to
the north.
floor
Serving
best
food,
skilfully
prepared,
broker.
Transfer of the Exchange mem¬
bership
of
James
William
A
.Atkins
sidered
on
T.
Hamill
will
be
Dec. 10.
Entertainment after 11 P, M.
to
con¬
Telephone PLaza 3-6910
Yet,
if
Washington plans
war
are
disturbing, these fears
was
in sight until the Ger¬
apply only to conservative in¬
mans
actually asked for an vestors. The
agile trader need
armistice.
Yet somehow the
not concern himself with
long
belief has taken hold that our
term trends or the possible ef¬
successful
invasion
of
the fect
on
them of political or
North African Coast marks
economic
changes. He can
off the end of the war.
dash in and out of stocks long
*
*
*
before
But, assuming for the sake
argument, that the premise
is correct, I fail to see in it a
bearish argument. On the con¬
trary if the war should end
tonight I believe the market
would go up so fast it would
of
10.
Bryant
individual
his Cabinet
to believe the end of the
New York Stock
Exchange
Weekly Firm Changes
or
leave most of
us
dizzy.
Of the second reason,
taxes,
hold,
these
if
course
conditions
they
the
ever
do.
conservative
take
1 rticle
time
views
do
not
coincide
Chronicle.
Whyte.
expressed
in
necessarily at
with
They
are
those
of
LAMBORN & CO.
99
WALL
STREET
NEW YORK CITY
Of
a devotee of safety and
interest, has his job cut out
for him.
But to get back to
the trader, with whom the
column
is
primarily
con¬
cerned, and the market of the
term future rather than
SUGAR
Exports—Imports—Futures
DIgby
this
any
the
presented
those of the author only.]
in¬
vestor,
near
—Walter
[The
4-2727
as
stock, and change the voting
power of the common stock so that each
share of such common stock ($10 par) will
have one-fifth of a vote; (2) issue and
of
OFFERINGS
POWER CO.
CENTRAL MAINE
Co. filed a regis¬
with SEC for $14,500,000
Power
Maine
Central
tration statement
of a new series, to be
(3) issue and sell for
in principal amount of 10year
serial notes; (4) issue a presently
undeterminable
amount of $50
preferred
designated Series M;
maturing July 1, 1972; $5,000,000 tenyear serial notes, maturing serially on July
1 from 1943 to 1952, and 261,910 shares of
common stock, par value $10 per share.
M,
utility and engages
operating pub¬
in the electric, gas
entirely within the
and
business,
water
Maine:
Underwriting—The bonds and the notes
will be sold under the competitive bidding
rule of the Commission.
Names of under¬
writers and amounts and offering price to
public will be suoolied by amendment
Registration Statement No. 2-5024, Form
stock
of
It
ing
7%
the
par
($10 par) at $10
per share, and that Nepsco purchase such
shares (less any shares taken by holders
of common stock and 6% Preferred stock
of Central Maine upon the exercise of their
respective
preemptive rights);
(2) that
Nepsco tender for conversion its present
holdings of 54,699 shares of common stock
Cumberland
of
stock
ferred
6% pre¬
receive
638 shares of
and
404,575
funds provided for the purchase and
construction of property with cash derived
the
from
Nov.
Nov.
Effective
1942,
25,
5:30
p.
m.
p.
m.
of. 5:30
as
EWT
EWT
1942
4,
competitive
under
Awarded
Bonds
bid¬
to the First Boston
Corp.
Coffin & Burr, Inc., group on bid
of 106.31
■
" :" • /
Offered Dec. 3, 1942 at 107% and int.
by syndicate headed by The First Boston
Corp. Coffin & Burr, Inc. and associates.
ding rule, on Now 30,
|
t
Corp. and subsidiaries
be
Dec.
31,
administered
by
mittee,
will
mittee
list of issues whose registration state¬
These issues
a
tion statements will in normal
days after filing except in the case of the secur¬
ities of certain foreign public authorities which normally
become effective in seven days.
is twenty
unless otherwise specified,
as per rule 930(b).
These dates,
of 4:30
are as
P.M. Eastern War Time
ing.
officers
CANDY
1
CO.
of
as
participating preferred stock, par
Address—622
Business—Company is one of the
largest
candy and confection
the United States
manu¬
leading
in
facturers
Offering—Registrant proposes to offer
participating preferred shares regis¬
tered, at $100 per share. The entire amount
of
the
consideration
received
shall
be
the
credited to
capital account.
It is not pro¬
to pay any commissions or under¬
fees with respect to the sale of
posed
writing
stock.
the
Approximate
date
public offering Nov. 25, 1942
Underwriting—There is no
of
proposed
commitment
with respect to the sale or
of the securities registered
Proceeds—Will
be
used
principally in
of
kind
underwriting
(11-16-42)
Dec.
acquisition of similar types of business
lands $750,000;
trucks $100,000; raw commodities for pur¬
pose of stabilizing inventory $250,000;
to
provide funds for payments under pension
and profit-sharing plans for its employees
$900,000; in reduction of indebtedness on
farm
properties $200,000, and for addi¬
tional working capital $75,700
Registration Statement No. 2-5059. Form
additional
$700,000;
A-2.
farm
(11-14-42)
Hearing
on
suspension
of
registration
SEC states it has
reasonable, cause to believe that statement
includes
"untrue
statements of material
set
for Dec.
1942,
9,
facts"
as
SATURDAY, DEO. 5
MUTUAL INCOME
Mutual
Income
FOUNDATION, INC.
Foundation,
Inc.,
has
statement with the
paid certificates
of
ownership at $500 each, 150 periodic pay¬
ment certificates of ownership at $1,000
filed
SEC
each,
of
a
for
registration
200
fully
total 350 certificates; 150,803 shares
interests to be issued under
PALESTINE
AMPAL-AMERICAN
TRADING
CORP.
held
filed
the
registration
statement with
182,000 shares 4% preferred,
a
for
SEC
cumulative
$5
stock,
non-Voting
New York City
Business—The corporation
the
for
value
par
share
per
Address—1440 Broadway,
organized
trade rela¬
was
developing
of
purpose
tions between the United States and Pales¬
tine
and
assist
its
the
in
cial aid
surrounding
development
of Palestine and
resources
sold,
offering
total 187,741 shares.
price,
Aggregate
to commercial,
dustrial
and
operative
Penobscot
Building,
De¬
but
or
Offering—Continuous
public
offering is
securities
not
P.
Statement No
(11-20-42)
New
otherwise,
enterprises, co¬
in and relating
Company was organized Feb.
Underwriting—There
efforts
the
the
of
securities
The
ers.,
the
of
will
underwrit¬
sold through
no
be
and
employees
will
$5.50
be
Date of
ing is Dec.
1,
for
of
schemes
corporation
issue
directors.
profit
oenefit
poses
to
have
of
been
for
the
in¬
pro¬
considered
make
indicated
No
itself
the
to
Palestine,
and
economic
with
organization
investments
in
substantial
for
the
of
pur¬
its organization
Registration Statement No. 2-5061. Form
A-l.
(11-19-42)
WEDNESDAY, DEC. 9
LOCKHEED
Lockheed
AIRCRAFT CORP.
Aircraft Corp. has filed a reg¬
statement
with the SEC
covering
in
employees'
retirement
Statement says number of
certificates for which registration
state¬
ment is filed is uncertain.
All participa¬
participations
plan.
located
Elkton,
at
of
"/ /■'•!
Uunderwriting—No Underwriters. ' "^
of
offering
proposed
for
•
as
j
or
the
of
date
be terminated earlier by
the voting trustees with the written con¬
sent of the holders of v.t.c. representing
a
majority in par value amount of the
stock deposited thereunder
Registration Statement No. 2-5063. Form
F-l
(11-25-42)
'";4
A-2
j
(10-28-42)
Request
material
CO.
PETROLEUM
Petroleum
Phillips
of
without
stock,
common
value.
..
for 43,-
SEC
the
with
statement
shares
.[
>
filed. a reg¬
has
Co.
„
New York
Address—80 Broadway,
par
-1
>
and
its
sub¬
integrated unit
the petroleum industry, owning reserves
crude production in a number of fields
the Mid-Continent and Gulf Coast 'areas,
Business—The
in
of
in
company
compromise
sidiaries
an
plants and crude oil reT
fineries, oil pipe lines, gasoline pipe lines
and marketing outlets throughout Central
United States and extending into adjacent
natural
gasoline
■'
areas
Underwriting—There
in connection with
;
FIREMAN'S
are
Fund
of
Home;
share of Occidental
Co.
has ' issued and outstanding
of common stock, par $100
In
consideration of $1,000
cash, the owners of 21,500 shares of' stock
granted to Phillips and Sunray Oil Co.i
an
Oklahoma corporation (in the propor¬
tion of 79% to Phillips and 21%
to Sunshares
25,000
share.
option
the
and
shares
■
to
additional
such
21,500
the
purchase
of
shares
the
FINANCE
Finance- Corp.- filed
in
Underwriting—There are no underwriters
be issued
under plan of
Proceeds—To
:
-
-
POWER
LIGHT
$100
shall
ers
that
if
able
to
shares
3,500
be
deliver
stock
common
shall
shall'be
stockholders
said
the
as
deliver.
able to
all
of
of
Alma,
be
the
the
un-f
said
cash
pay*
for
each
$98.40
reduced
of
shares
basis
of exchange in terms of the -consideration
to be paid only by Phillips, the company
will
receive
in exchange
for the 43,928
not
Stating
delivered.
so
the
T
shares
of
will
at
be
its
common
18,749
stock of Alma,
of common
recorded
stock
on
the
company's
$1,844,976
Proceeds—For
and
a
which
books
'
:
A-2
of
has
America
filed
a
reg¬
istration statement with the SEC for 65,000
shares
of
share.
The
stock,
capital
shares
are
value $5 per
already issued and
par
Address—First
National
Bank
are
Investors
Boettcher
registered are to be sold by compan]
the competitive bidding Rule U-5C
the SEC's Publio Utility Holding Com¬
pany
Names of underwriters and
public, will be supplied by post*
amendment to registration atate;
Act.
price to
ment
:
•
engaged,
Co.,
&
Inc.
be
will
Co.,
Denver,
underwriters
which
will
class
of
stock
A
working capital
(3-18-42)
A-l.
Amendment
Nov.
filed
to defer
1942,
9,
effective' date
%'i
applied
as
1
follows
CO.y:;',.'''^Vy -!
NEIMAN-MARCUS
in
'
Dallas/ Texas, has
with the SEC
Co.;
Neimao-Marcus
aihended prospectus
filed an
with
connection
the
public, offering of
$700,000 5 '/o cumulative preferred fctock,
par
value $100 per share.
According to
amended
prospectus
the public
offering
$92.feo
price has been reduced from $100 to
effective Nov., 15, 1942. State¬
that principal underwriters will
grant concessions to dealers constituting
the
selling group of $6 per share.
The
principal underwriters have also discon¬
tinued stabilizing the price of such shares
The
registration statement was origin¬
ally filed Nov. 19, 1942, No. 2-4581, Form
A-2.
Offering price to public at that tiijie
was
given as $100.50, with underwriting
share,
per
sayq
discounts
$5.50
of
commissions
or
per
share,
the
142,667 shares of company'!
preferred stock, no par. Further de¬
tails
to
be
supplied by post-effecfclv»
hands
$7
selling group and price to public was low¬
tmendment.
pectus does
Registration Statement No.
(9-17-41)
Amendment filed Nov. 28,
2-4845.
Font
1942, to defer
date
Amended
prospectus
dated May 1,
the 7,000
1942, stated that 1,566 shares of
shares
ered
still
the
to
principal
$100
in
the
underwriters
and
unsold
remained
covered
of
Amended
share.
per
pros¬
of shares
not indicate number
in hands of selling group
Principal underwriters were Moss, Moore
&
remaining
Cecil,
Inc.,
Dallas
and
Rupe
&
Son,
Dallas, Texas
retail spe¬
cialty shop located in Dallas, Texas
Company
and
The
each
share,
effective
is
with
stock;, thereafter
$52,•
5s of
$15,693,370 to redeem at $110 pel
Building,
intends to
continue
to
engage,
in the business of
prospecting for, mining, refining and dis¬
tributing potassium salts, known as sylvite or manure salts, and potassium chlo¬
ride, known as muriate
Offering—The 65,000 shares will be of¬
fered to the public at a price to be filed
by amendment
Underwriting — Maximum
number
of
shares to be purchased by the underwrit¬
ers
are
42,064 of the 73,360 shares now
owned by Lehman
Corp., and 22,936 of
the 40,000 shares owned by General Amer¬
ican
offering—1The securl-
Underwriting ana
ties
under
of
included
be
common
reserves
unit
ment
Florida
of
a
Registration Statement No. 2-4968. Form
A2
outstanding
Denver
Business—It
public utility en¬
gaged principally in generating, transmit¬
ting, distributing and selling electric en¬
ergy
(also manufacture and sale of gas)
serving most of the territory along tin
east coast of Florida
(with exception ol
the Jacksonville area), and other portion/
1954;
OF AMERICA
Co.
America*
& Shar#
subsidiary of
(Electric Bond
is an operating
653,170,000 to redeem at 102'A, the
000.000 of company's First Mortgage
SUNDAY, DEC. 20
Potash
Light
&
System)
Proceeds
(11-30-42)
POTASH CO.
Business—This
Power
at
•
■.
effective
of stock
exchange
r
m.
is to ba
price of
stock
A
shares,
4
With at least the first 900
Proceeds will be used for
,
said stockholdT
- In
the event
that
Phillips and Sunray shall exercise
such option, the consideration to be paid
will be 43,928 shares of Phillips commoq
stock, and the sum of $615,024, provided;
remaining
Ths
the right to reduce tb«
of common shares to be included Ir
number
each
class
of
shares of
4
company
the
and
financing
underwriter.
sole
there-will
units;
tht
rates on
Interest
Par.
Debentures,
and
ill.
filed, July 30, 1942 to defer
units
in
unit
Mortgagt
dividend
rate on the preferred stock, will be sup¬
plied by amendment '
.
"
Address—25 8. I. Second Ave., Miami
Bonds
the
is
orrering—The
bonds, due Oct. 1, 1971; $10,000,000 Sink
Ing Fund Debentures,
due Oct. I, 1958,
and
140.000 shares Cumulative Preferred
Stock,
intermediate
or
$110 per unit.
registered
Co.
First
$45,000,000
SEC
stock, $1 par
effective date
,
CO.
Light
Power. «fe
Florida
With
*
and 25,232
a
underwriting commission is $8 per unit
sold
FLORIDA
par;
markets open avenues for longerfrom customary sources
M. Preston & Co., Chi¬
111.,
cago,
effective date filed
defer
$25
term borrowing
Amendment
to
registra¬
for 39,912
stock,
."interim"
capital
(10-15-42)
1942
SEC
Underwriter—H.
Registration Statement No. 2-5051. Form
14,
A
,
the
enterprises until the financial positiona
the borrower or a change in
general
to
■
Amendment
class
CORP.
with
statement
vide
of
'••%
Statement filed in San Francisco
ESWT
m.
Business^—Primary function of company
is to loan money to enterprises whose debt
and/or
capital structures are being adJusted or reorganized by Its wholly-owned
subsidiary, H. M. Preston & Co. A second- •
ary function is to loan money, with funds,
not used In its primary function, to pro¬
,-s
-
.
5:30 p.
effective
1942
28,
Address—33 N. La Salle St., Chicago,
of
Fireman's
-
shares common
75/100ths
for one share
r.
»
.
INTERIM
shares
45/100ths share of Fireman's Fund for
mon 'of Occidental
Insurance Co. on basis'
one
the gen¬
of
part
a
company
.-interim
tion
to
1942,
Oil
in¬
■
of
(10-12-42)
Oct.
on
of
Nov.
Alma
basis
on
shares of
30,348
become
the
of
Registration
filed
exchange for 67,440 shares of $10 par com-
value, for issuance if the company
an
option received under date
of
A-2.
•
,
and
of
's-.y ",'v-
Registration Statement No. 2-5050. Form
marine
and
Fireman's Fund
exchange
acquire capital stock
The latter, a Delaware
has
'
California
com¬
outside
'•'
:
.»
and
funds
eral
of Home Fire & Marine Insurance
common
A-2.
12,
net
Offering—After reclassification of securi¬
Fireman's $10
and scrip for fractional shares
in exchange for 44,984 shares of $10 par
share of
stock
specific allocation of the
proceeds has been made, but will be
added, to
ties to offer 33,738 shares of
Co.
and
fees
of the selling group
preferred
Proceeds—No
par common
Offering—Executive committee on Nov,
1942,
approved an issue of 43,928
of its common capital stock, with¬
Nov.
Co.
etc.
surance,
24,
of
CO.
motor
the
State of Texas
■■
INSURANCE
Insurance
Business—Fire,
in the State of Texas
receive
managers
,
.-l
;
FUND
will
second
offering
Nov.-12, 1942, to defer
11
underwrite
no
this issue
1942
18,
the
missions as
registration statement with SEC for 64,086
shares of $10 par value common stock
Address—san Francisco, Calif.
:
"1—
■
Nov.
date
effective
Fireman's
SATURDAY, DEC. 19
PHILLIPS
transactions occuring
and
specified
of
withdrawal
for
filed
of
receive fees and* commissions for
first will
\
Amendment filed
shares
of
number
sufficient
a
preferred, $50 par, for the 10,000 shares
of-preferred stock, 7%
cumulative/ par
value $50 per share, callable at $55 per
share, presently outstanding
Underwriting—The preferred stock is not
being underwritten.
Names of principal
brokers
soliciting
subscriptions
are
Moroney, Beissner & Co., Houston, Texas,
and Mackubin, Legg & Co., Baltimore. The
W. Brooks & Co., Inc.,
City, is the principal under¬
defined in the Securities Act of
and balance for such additional
production facilities as are needed.
may
if
preferred is subscribed for by the public
and by the holders of common, company
will offer
to exchange ,11,000 shares pf
acquired
years
and
payments
but
the right to refund all
cancel the subscriptions,
reserves
company
from Oct. 1,- 1942, the
voting trust agreement.
The ,.'- Registration Statement No. 2-5058. Form
ten
ceeding
of
opinion of, the company a sufficient num¬
ber of shares is not subscribed
for the
•
voting trust certificates Dec.
18,
1942.
Peoples-Pittsburgh
Trust
Co.;
Pittsburgh, trustee.
The voting trust is
for the duration of the war, but not ex¬
of
delivery
share
one
shares,
Offering-—The securities will be offered
at prices ranging from 99Va to 102'A de¬
pending upon maturity date
Proceeds—Net proceeds will be used
to
discharge a proposed demand bank loan,
to reimburse the corporation for machinery
■
pre¬
pre-emptive rights, by subscribing
of preferred for each four
common stock held.
If in the
cise ,such
1933
fireworks,
.
Offering—Date
busi¬
but' P.
York
writer,
etc.
flares,
folding
because ' of
New
total of
a
final decisions have
been reached, and no commitments have
been made, except that, in a general way,
and subject to re-examination,
the direc¬
tors
believe
that
the
corporation could
with
Plant
Pa.
wrappers,
their
waived
not1 previously
rights to . subscribe for the. new
preferred will be afforded a 10-day
period after, the effective date of the reg¬
istration statement within, which to exer¬
and wrapping materials in a
of
forms
of
envelopes, -folders,
Primarily
to
issue of
>•••'
...
is
emptive
done by
registered,
Street,
Maryland '
proposed public offer¬
number
the
by
this
of
its
for
1942
Proceeds—A
ceeds
share,
per
$1,001,000.
vestment
a
Registration Statement No. 2-5064. Form
issuer
Offering—The offering price to the pub¬
lic
SEC
Address—Fourth Avenue at Wood
Business—Manufacturer
Y,
N.
after reclassifica¬
be offered at $50
The holders of common stock
stock,
securities,
(approximately 80,000 out of 158,289).who
have
boxes and containers.
the nature of the
plant and products of the corporation, it
is anticipated that the war or conditions
arising therefrom will not alter substan¬
tially the general character of the business
or products of the corporation
Underwriting—No firm Commitment ha3
been made to take any of the securities
voting trust certificates for 499,722 shares
common' stock, par value $2 per share
Pittsburgh,
York,
Ave.,
'.
...
....
.
share.
per
•'
Glendale,
-m,
Cooper
of
in. a
gas
towns
cities,
Offering—The
tion
Sxkv/o\ bonds,
from 4943 to
maturing
A,
variety
of
fraction
are
directors
with .the
statement
registration
.
the corporation is the design,
development, manufacture and sale of paper
INC.
filed
of
•!•
,
„purchases
large
and communities
natural
Texas
*
produces,
Business—company
anddistributes
packaging
has
J,V:
Texas
*
*
Business—General character of the
ness
2-5062. Form
Explosives,- Inc.,
but whose
been deter¬
us.-. -/
convertible
serially
mortgage
Address—7800
'
EXPLOSIVES,
Triumph
te
has filed a registra¬
the SEC for $360,000
1957..
MONDAY, DEC. 14
TRIUMPH
not
CORP.
with
statement
tion
series
by
issued
have
unknown
are
cumulative,
preferred. stock, 5%
value $50 per share .
Address—Petroleum, Building,,. Houston,
Andrews Corp.
L.
first'
of its subsidiaries
any
more> ago,
or
dates
or
ANDREWS
L.
P.
other
in
CORPORATION
Gas
par
in
of
securities
in
Government,
list ct Issue*
a
number
be
may
invested
or
States
Registration
CI.
share
1942, in New York.
6,
income
troit, Mich.
Business—Investment trust.
trustees
purchase of
securities,
ment
banking, credit, in¬
agricultural
and
Palestine.
to
istration
$1,218,158
Address—1308
the
cash
Lockheed
to afford finan¬
issued
to be
mined
eligible
be
will
directors,
days
offering
1942, to join the plan.
provides that funds
31,
by
in
territories; to
of the economic
beneficial
periodic payment certificates of owner¬
ship now outstanding; 36,938 shares to be
under the certificates of ownership
10
United
the
ray),
Ampal-American Palestine Trading Corp,
has
by
1
twenty
the corporations.
below
present
,
ESWT
m.-
">
Houston, Natural
shares, of
applied
toward
the
or
payment of
premiums
upon
annuity
contracts,
etc;
Pending such application, funds may be
received
per
TUESDAY, DEC. 8
any
the
majority
a
>
1942
9,
Corp.! has filed !a
registration statement with SEC for 40,000
OF OFFERING
registration statements were filed
whose
of five
will be
composed
corporation,
Registration Statement No. 2-5060. Form
C-l.
Chicago
Diversey Parkway,
effective
from
and
after
the
registration statement
$100
value
whom
Nov.
i
effective -5.30 p.
Registration
■
UNDETERMINED
We
Proceeds—Indenture
■'
out par
Proceeds—For investment
shares of
and
of
date
Candy Co. has filed registration
with the SEC covering 30,000
Curtiss
of
and
exercises
proposed
statement
its sub¬
this- com¬
(10-12-42)
A-2.
HOUSTON NATURAL GAS
shares
,' -7
CURTISS
boards of
and
fund
Registration Statement No; 2-5049.-Form
<
.
DATES
Participa¬
tion
in
the
plan is optional With each
eligible
employee.
It.4s estimated that
approximately 2,250 employees of the com¬
pany
and its
subsidiaries,' including
13
ers
Offerings will rarely be made before the day follow¬
THURSDAY, DEC. 3
initially
of
employees
filed less than twenty days ago.
grouped according to the dates on which the registra¬
course become effective, that
are
the
that
expected
be
individuals,
by
company
is
It
istration
Following is
the
of
sidiaries.
6J/a %- 15-year, sinking
bonds-due Sept. 1,-1944
debenture
by
received
be
ape
1943, the
to retire as of Jan. 1,
be used
on
1942. The plan is to be
a
retirement plan • com¬
appointed
be
to
directors
928
ments were
will
selling
underwriters
Underwriting—No
corporation,
the
of
funds
other
corporation's
stockholders
Registration Statement No. 2-5066. Form
A-2
(12-1-42)
' •
1
,
to
Offering—The effective date of the plan
will
agreement
above
described
transactions
Registration
on
1,500,000
of
plan
income
ment
together
Proceeds—The
with
St.
Inc.,
Co.,
&
is the sole underwriter
net
proceeds,
Paul,
■
•
Proceeds—Proceeds
the
in, the ..retire¬
Lockheed Aircraft
Business—Participations
shares
sary
(1)
Investors.
California
Central Maine and
of
and 6,380 shares
(total 410,955 shares) respectively of com¬
mon stock
($10 par) of Central Maine
It
is
further
proposed
that
Central
Maine's bank loans be paid off and neces¬
change and increase its authorized common
stock from 150,000 shares (no par) into
;
.
i
Burbank,
!
Place,
dividend
therefor
shares of common stock ($10
par) of which 642,500 shares will be outstanding in the hands of the holders of
the
presently outstanding 1*0,Uuu anaics
each
for
shares'.of common stock
Become
that Central Maine:
stock ($10 par) of
share of 5% %
common
preferred stock in direct ratio to
value of its $50 preferred stock,
series, issued in such ex¬
change of Cumberland preferred stock
It is further, proposed: (1) that Central
Maine
issue
and
sell for
cash 261,910
of
proposed
of
Maine
plus
dividend series,
5%
stock,
share
5%
Maine.
is
for each share
stock of Cumberland. It is fur¬
ther proposed that Central Maine redeem
or otherwise
retire its presently outstand¬
and
Cumberland (both
Nepsco) propose to . enter
into
an
agreement of merger by which
Central Maine will acquire all the assets
and assume all of the liabilities of Cum¬
berland and by which Central Maine will
continue
as
the
surviving
corporation.
Cumberland will dispose of all of its assets
to Central Maine and will be merged into
Central
5% dividend series, plus two
par) of Cen¬
of 6 % preferred
of Cumberland, or two shares of $50
stock,
preferred
Maine
Central
subsidiaries
pre¬
ferred
Central
follows:
as
$50
to
one
Utility Holding Company
regarding transactions, sum¬
1935
receive
of
shares
two
elect
preferred
Public
the
of
12
however, to an
prices, subject,
of
stock
Effective—The
SEC on Nov. 5, 1942, issued an order grant¬
ing the applications and permitting to be¬
come
effective declarations filed by Cen¬
tral Maine Power Co., Cumberland County
Power
& Light Co., New England Indus¬
tries, Inc., and New England Public Ser¬
vice Co. pursuant to sections 6, 7, 10 and
marized
at
tral Maine
post-effective amendment. Redemption pro¬
visions of the new bonds also will be sup¬
plied by amendment.
Company also pro¬
poses to issue and sell privately $5,000,000
face
amount of its 10-year
serial notes
maturing serially $500,000 each year from
1943 to 1952.
Interest rate on notes has
not yet been announced
Act
Cumberland
shares of common stock ($10
first and general mort¬
gage bonds $12,500,000 and fixed the in¬
terest rate at 3 '/a %. The amended applica¬
tion also covered 261,910 shares of $10 par
common stock, same as original statement.
Offering price of bonds to the public and
list
of
underwriters will be
supplied by
to
of preferred
their respective
shares
exchange to be made to the hold¬
thereof under which such holders may
ers
offering of
Declarations
of
redeem, and
(2)
respectively:
outstanding
redemption
registration statement on Nov.
made the amount of the pro¬
which
posed
and
all
offer
its
to
due
105%,
retire
Co. filed an amend¬
Central Maine Power
12
and
1960 of Cumberland, and
retire said bonds at 105V* %
4 'fa
redeem
(6-29-42)
ment
first mortgage bonds, 3%l/o
due
$1,494,000
of
first mortgage
and
1966
bonds,
A-2.
(1)
275,000
of Maine
State
proposed
that Central
assume the liability upon $9,-
further
is
It
as
of
first year of plan
Address—1705
Victory
series
outstanding
20,000 shares are presently
$174,000,
being
estimated
employee contributions during
given
amount
of which
dividend series,
5 '/o
stock,
Business—Company is an
lic
is
cash $5,000,000
Augusta, Maine
Green Street,
Address—9
bonds
mortgage
bonds, Series
mortgage
general
and
first
$12,500,000 first and general
cash
for
during
date
Underwriting—Kalman
purchase 21,032 shares from Lehman and
11,468 shares from General American In¬
vestors, and Laurence M. Marks & Co.,
New
York, 21,032 shares from Lehman,
and 11,468 shares from General American
the first year after effective
of the plan.
Aggregate offering price
tions
common
sell
£
Flotations;
Calendar of New Security
Thursday, December 3, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL &
1974
GRAND FORKS
HERALD, INCORPORATED
Forks Herald, Incorporated, has
registration statement with the
SEC
for
$170,000 4 %%
first mortgage
serial maturity bonds, dated Sept. 1, 1942
Bonds will mature as follows: $12,000 on
each Sept.
1 from Sept. 1, 1943 to and
including Sept. 1, 1951; $62,000 on Sept.
owns
and operates
Grand
filed
1.
a
1952
Address
_
—
118
Grand Forks, N.
North
Fourth
Street.
D.
Business—Newspaper
publication
be offered
Offering—Bonds are to
prices ranging from 100.50
at
and interest to
NU-ENAMEL CORPORATION
Nu-Enamel Corporation
tion
statement
shares
of
filed
the
with
SEC
a
for
registra¬
106,500
stock, $1 par value
Address—8 South Michigan Ave., Chicago
common
Business—The company
distribution
varnishes,
and
kindred
distributed
Enamel."
pany
and
-
;
are
lines,
under
The
is engaged in the
of enamelsr paints,
finish, stains, polish
sale
linoleum
which
the
products
are
trade
principally
name
sold by
manufactured
by
"Nu-
the com¬
Armstrong
Volume 156=;- Number 4130
.Iftint,
"
'
•
THE COMMERCIAL & FINANCIAL CHRONICLE
Varnish Works, of Chicago, iindet
company'!
that
yield would fluctuate with
the prices of the bonds,. Under no
*cjanti;ac% in'ace.orJance ,w-jtK'the;
formulae and
specifications
;
(Continued from page 1967).- ment income, " with a substantial
circumstances. would
part of the aggregate income com¬
prised of bond interest, and with
a
policy of distributing substan¬
tially all net investment income,
it is at once apparent that the sta¬
tus of 'regulated investment com¬
pany' is to the overwhelming ad¬
vantage-of Union Trusteed Funds,
prices advance in order to main¬
j Underwriting—Floyd DrVCeff Co. is thf
/
fjrtncipal'underwriter;''!■ :V r?<
j
CHiiieiuent No. 2-4940.
«MiaUuii
A2
(2-2-42).:
1
Union
9.
1942
filed
tration
shares
2,695,000
«U of
which
to
its
„
Feb
on
regis¬
underwrit¬
the
naming
who
all,
in
Missouri,
amendment
an
•;
.
of
Co,
statement,
141
ers,
Form
...
Eleetrie
will publicly offer the
(no par)
common stock,
owned by its parent com¬
are
pany;'The North; American Co.. The names
the
of
underwriters,, and
iiumoer
shares
of
of
the
such
maximum
stock
common
Which each agreed to purchase were listed
"Chronicle"
the
in
of
Feb.
26, 1942,
844' '-v..-',.>,
■/;-
Amendment filed
(
effective
Nov,-2,
-
LIGHT, HEAT AND TOWER COM-
PAN!
"This
is
of
'Union
Light,
Heat
25,000
shares
Addrei>»-^4tb
and
Power
$100
Co.
par
re
tion in
common
Main
&
Cincinnati
St.,
Business
Operating
—«•
ootnoanv
1942,
all
or
purchase
to
the
of
front Gladys
Lloyd.
mitment
purchase
pay
to
Corp.,
share of
public will be
Proceeds—The
.
already
issued
Individual
said
has
of
work
that
L.
much
brighter.
6hares.
agreed
to
of
Nu-Enamel
stock pur¬
common
underwriter from
Offering price to
supplied by amendment
and
offered
are
proceeds will go to
the
be
to
the shares
of
Corporation
amendment
an
$2
giving
;
Registration
Sept.
its
to
the
filed
Aug. 26
on
state¬
registration
public
offering
at
price
share
per
14,
effective 5:30 p.m'. EWT on
1942
UNION ELECTRIC CO. OF MISSOURI
Electric
Union
Co.
2,695,000 shares
Missouri
of
statement
registration
with
the
stock,
common
.
filed
a
for
BEC
par
no
back
Business—This
St. Louis, Mo., and portion of 5
Missouri counties and of 3 counMissouri adjacent to the company'!
of
; '
in
ties
hydroelectric
o"
of
to be
shift
to
in
underwriters
will
of
shares
ceeds
aha res
-/
:V•
=;.
■
Underwriter—Columbia
•
•
.
&
Gas
<
Electrle
now
■
war
" v.;
American
'
'
/
''
1
'• "
•
■ v
V--
'.v..
will
^Offering—Stockholders
fer
touoscnoe
u>
each
for
holders
On
unit.
subscribe
moy
each
for
of
5/94ths
each
for
com¬
one
6
to
new
at *100.016
held
share
ot
of¬
of 6/94ths of a snart
a Bhare held at *5.3i
a share
baBis, stock¬
units
share in
mon
20/i)4Ux»
to
recetv*
for
the
Columbia
by
anc
mortgage bonds held bj
associated companies, auu fox
first
$2,835,000
parent and
construction
costs
filed Nov. 19,
Amendment
effective
date
UNITED
GAS
1942, to defer
sufficient for the job in hand.
expect
:T. United
Corp.
Gas
and
mortgage
first
bonds due. 1958
s
■
Address—2 Rector Street, New
York City
Business—Production and sale of natural
part of Electric Bond
gas;
and Share Sys¬
cated
Offering
redeem
Proceeds—To
Service
Public
Oas
$28,850,000 United
due
Debentures
6%
to pay 6% demand note of $25,925,to Electric Bond and Share; to repay
1953;
000
$2,000,000 open account debt to E. B. <fe S.;
from United Gas Pipe Line
$6,000,000 of
its 1st & Coll. 4%
and to purchase
Co.,
bonds
Balance
1961.
due
will
be
used
in
reimburse treasury for capital ex¬
penditures and possibly to pay accumulated
to
part
dividends
of
$9,502,490
companys
on
$7
preferred stock
Registration Statement No. 2-4760, Form
the
It
United
BEC
on
been
filed amendment with
Feb. 21, 1942, stating that it had
Gas
unable
Corp.
further
to
with
agreements
chase
extend
14
the
insurance
pur¬
com¬
the proposed private sale
insurance companies of $75,000,000
company's first mortgage and col¬
lateral trust 314% bonds, due 1959.
This
panies
to
such
of
the
covering
amendment states: "These purchase, agree¬
ments expired on Feb. 16, 1942.
The cor¬
poration
to
the
sold
to
intends
end
that
privately,
its
continue
bonds
negotiations
shall
be
We
election, the
by
to
renewal of the afore¬
agreements or otherwise, or offered
the public as circumstances shall dictate
In
order to obtain
.
'
Amendment
the pest possible price."
filed Nov. 2V 1942;
effective date.
to defer
.
lower
policy that
series
others
as
yields.
How¬
have
we
bring tem¬
through
larger
ultimate
but
Our
disaster
criteria
chips fall
The
the
to
have
been
they may."
as
issue
current
of
in
another
social
reform. The
radical ideas on corporation
Union become malefactors and
the
of
series
punchy discussions
on
what
to
them.
term
1942
and
do
about
losses in all these
and
Short-
This
shares h the
column
we
"Preferred
-
the year
12-page
are
Profit
a
would
op¬
lished
has
convinc¬
sidered
suitable
this
for
Bonds
Selling at discounts.
addition, the bonds selected
be obligations of companies
whose
earnings
before- taxes—
..C\'
being rapidly increased.
are
•;A:
;
V'VvkV
Na¬
The
#
action of
ft
the
be
that
upward
con¬
"lower
before
seen
any
movement
ing."
research work
This
that
the
of
"Investment
is
the
service
seventh
has
held
oc¬
week
issue
Corp.
National Securities &
must fully
card
is
out
with
a
the
to
expectation of lower pricesResearch
neat
little
showing how much security
its interest
issues se¬
lected for the eligible lists must
dividuals in various income brack¬
be
ets.
of
as
pay
losses
the
date
certain, and they
must, as of that date, have cov¬
ered their fixed charges for the
past year, and of course be pay¬
ing interest as due. The third fac¬
as
a
that
tor
was
we
would
as
of
divide
a
the
date
two
groups—one
Bond
Series
into
Low-Priced
of which is
and
Bond
the-other
Series.
man
our
our
in taxes for in¬
may jsave
It
shows, for example, that
with
$10,000
Should
net
can
realizing
that those
themselves
that when
he
in
the
be
to
securities
misled
holds himself forth
one
simultaneously establishes
his client.
to
business
refuse
and
as
dealer in securities
a
fiduciary relationship with
far-fetched groping and
twisting, in order
Such
erect \some
kind
a
of
round-about foundation in law,
abolish the personal property rights
of American citizens
engaged in the securities business (as
dealers and principals for their own account and
risk*) and
whereby the SEC
can
thereby establish a basis for the control of profits by the
Commission, is the sort of undermining skullduggery
brought to the surface and publicly condemned.
CONGRESS
SHOULD
NEVER
HAVE THE
INTENDED
RIGHT
TO
THAT
IMPOSE
THE
SEC
ARBITRARY
RULINGS WHICH HAVE THE FORCE OF
LEGISLATION
OVER; THE
let
alone
PERSONAL
for
PROPERTY
RIGHTS
OF
THE
that there is
industry needs nothing
while.
a
The
recent
limit to which the
a
more than, to be
elections have shown
public will tolerate
exces¬
sive
abuse of power by the executive
agencies
ernment.
It is well to remember that the
of the gov¬
employees of these
agencies are appointed to their offices—they are not elected
by the people—and Congress has heard the voice of the
people. A weak-kneed acquiescence to bureaucracy is no
longer indicated for the securities dealers of this country.
T'lt must be remembered that there is
dealer and
a
vast difference
broker in securities.
A dealer buys
just as does the
proprietor of a furniture, hardware or any. other kind of a
store or merchant.
The profit a dealer in securities feels
a
a
block of securities for his
a
it is reasonable
factors
business.
•
own
account
desirable to exact is limited by the same
or
those
as
governing
a
merchant in
any
other line of
y
A broker
the other hand acts as an agent of an in¬
morally and ethically bound to
obtain the best possible price for his customer for which
he gets a commission.
As is well known many investment
;
firms act
an
on
is, therefore,
both dealers
as
investor does not care,
and
for
brokers.
any one
to buy the particular security
sons,
count,
"shelf"
its
on
and
will take
That
of
an
is to say, if
variety of rea¬
investment house
a
previously bought for its
firm that does both
a
a
own
ac¬
dealer and broker business
order for the
an
does wish to
buy
particular security the customer
sell and will charge a commission for
or
their services.
be
taxable
income
a
a
quick
convincer
quips:
V."'
to
A
"is
I
Socialists
and
,
*
*
business.
what is
that
"Brevits"
could
they
_
every
not
new
contains
folder
some
*
reviewed are put at $3,800,000,000, net earnings at $82,800,000, and post-war credit at
$30,900,000. Figures are given on
the individual companies.
day here
make
it
Lt
Lt.
the 31st Armored Regiment of the
7th
Armored
drowned, while
service, in
*
by Hare's, Ltd.,
interesting
1942
Phillips Dead
Harper Stewart Phillips of
River
a
near
Phillips
was
Division
on
was
leave from the
boat accident
Edgerton,
on
Rock
Wis.
Lt.
associated with Me-
con-
revealing comments on
.group would have a specifid yield
Washington- scene by -Paul
as of a date certain and thereafter
Mallon, veteran columnist. Among
some
control of
Even they can see from
happening
panies
for
Dealers
or
work."
A
The current issue of Massachu¬
setts' Distributors'
the
New
post-war ownership
*
*
Each Tains
Government co¬
man
who brings
a
organized chaos out of regimented
confusion."
Hopeful conclusion:
"The experience of this
war is
ruining the plans and hopes pf
of
$340 in taxes by
net loss of $1,000.
save
a
the
ordinator
action.
certain
bonds
new
busi¬
Tim¬
to our new bond
funds, we decided three rules
must be adhered to. First, every
Second,
a
securities
misrepresented,
For example, in a recent brief submitted
by the SEC, in a
case
involving the profits of a dealer, wherein the SEC ap¬
peared as a friend of the court, the Commission inferred
has
.*
•
market
indicate
to
will
forecast
25
respect
as
the
on
curs," according to the November
..
well
in¬
are
earning
In
sustained
coupon.
time
vestor; and
power.
National Securities &
Research Corporation.
We quote
in part:
•
- ■.
v •>:.■;
held
is
allow
to
;;
must
by
or
the
on
with active markets.
Whose market prices
fluenced
primarily
by =
issued
bought
stranglehold
a
the Securities and Exchange Commission would be
singing the praises of "Wall Street" throughout the
length and breadth of the land.
purpose.
3.
prices
and
pub¬
title, "Protect¬
ing Your Income During An Era
of High Taxes." Three points are
stressed in selecting bonds con¬
1.
our
in
curities under the
2.
/>
placing
ness,
this
attractive folder
an
tinues
"Following
.Group
Lord,
Series
taxes
General Bond Shares of Group Se¬
National
with
that
disbursements
Distributors
Low-Priced Bond Series" has been
Bond
foi
revisions
Stock
&
of
between
Possi¬
policy with respect to
tional
drastic
on
>!<
are so
out
year."
A "definite statement of invest¬
ment
dividends
prove
believe
to
cause
corporate
potentialities in in¬
dividual preferred stocks are il¬
lustrated by means of charts. .An
accompanying folder summarizes
the advantages of the Fund in
concise, easy-to-read language.
<'
recent
Investments
Preferred
bulletin
Union
Shares'
1942 will
led
were
our
The
Fund.
a
up
Corporation.
is the title of
bilities"
holding
gratify¬
ing to shareholders, and particu¬
larly to those shareholders who
*
Stock
are
Selected
American
"charter members" of the field.
*
of
issue
have this opportu¬
*
=
CITIZENS OF THIS NATION.
Company's -"Selections."
"It is
our '
expectation
that
Selected
nity, we should like to extend our
congratulations and best wishes to
Incorporated Investors, one of the
.
complains
preparing
method
brief
taxes
surprisingly well," states
significance for the future.
"As =•
Incorporated : Investors
eighteenth year, we
optimistic for the future of
business—and yours."
;
of which the SEC
cases
The- securities
All in all the
its
of every¬
"
the investing class and has marked
starts
made suspect
are
transactions
long-term
"Dividends
Act is favorable to
Revenue
where
cases
small in comparison to the vast sums which are mulcted
out
of the gullible public
every year by "quack" lawyers and
doctors, and other fraudulent business schemes of
every
kind and description,; that instead of
that must be
the subject of this issue.
are
taxes, payroll taxes, es¬
tate taxes, capital gains and ex¬
cess
profit taxes were defeated,
no
matter
how
important
the
of the ideas.
handful of
a
thing from the suggestion of ("fraud," to "actions against
the public interest."
/-.V:
-'0,7
'
In fact, one would
imagine when the public's total
income
source
uncover
have taken advantage of an
knowledge of security values and;
immediately all dealers in securities in every State in the
Keystone
Corporation's "Keynotes" contains
the power to tax be¬
used for
But let the SEC
dealers in securities
may
isolated investor's lack of
It
may
success
let the
raising revenue.
Congress would
that
not tolerate
ing
of
clear
others.
some
.
defined and will be adhered to—
pass¬
eithf
said
of
investor.
of this attitude
more
problem
was
earn
(5-15-41)
A-2
.
bond
two
our
not be as popular
any
conservative approach to
a
,
Terms—Bionds will be sold to
Institutional investors, whose names will,
be supplied by amendment, at 99.34%
«
suffer
would
fund and it is to this that
■
Underwriters—None
,
that
recession.
a
confident that over a
long period of time the policy we
are
pursuing will be fully justi¬
fied by the performance of the
.
tem
in
ever, we are
of the 1942 Revenue Act indi¬
age
Abbett's
registered $75,000,000
collateral trust
'V,'
bonds
than less.
rather
ing
,
CORPORATION
most
sales
(3-30-40)
A-a.
the
the
because
Department,
substituting
only specific authority
VV-'lTp; = '-X;
Registration Statement No. 2-437*. Fori#
are
may
therefor
And while
debt
current
con¬
tive
timism of the Parker
Corp.
Electric
&
Gas
Proceeds—To prepay
-
because
managed would
so
stantially,
'
1
snare
Substantially all outstanding stock is held
bonds
improvement, and
"Perhaps in the future, if me¬
dium-grade bond prices rise sub¬
weakening. A gradual
the right appears to be
sharei
per
better
sist of the weakest issues and they
-
'
Corp.
the
upon
improve, will prob¬
ably result in disaster, because at
the top of the economic cycle a
at
com¬
'
advancing
'
.
buying weaker bonds in the hope
converted
the
.
that they will
ahead
look
.
porary
com¬
Co., who will receive the entire pro¬
from the sale to the public of such
ican
to
grants of authority to the Execu-
be
pany's common stock are outstanding and
are owned by its parent, The North Amer¬
that
progress.
more
2,695,000
Offering—The
.
order
dedicated ourselves rather than to
by amendment
supplied
in
an
"Since the election Congress has
stiffened and has refused blanket
plant
other
the
good
-
seem
Underwriting—Dillon, Read & Co., New
is named the principal underwriter.
Name3
incon¬
intention to
our
bonds
of their market
too, those forces which
have been shaking the confidence
of the investing class for a decade
York,
;
selling
"Then
adjacent
Osage
been
for investing in
or.
stocks
panies.
subsidiary of The
engaged
are
be
after
"Even before
North
primarily In tha
transmission, distribution and sale of elec¬
tric
energy,
which it generates and pur¬
chases from its subsidiaries, serving the
is
Co.
American
'
otherwise
yields in
up
portfolio
will
cash
spending
-v
of
may
criteria and
our
"Any policy that is based
place3 vast amounts
going into government
are
to
may
Address—315 N.'Twelfth Blvd., Bt. Louia,
Mo.
city
weaker
bond market.
for invest¬
some
the
make
which
bonds
5
(8-1-421
ment
may
Any Business in The Country
(Continued from first page)
.
"In the first
of cash
Industries
the amount
shares
sellers
C.
Registration Statement No. 2-5029. Form
A-2.
issues .not
hold
25,1942.
have
"We feel that forces
per
shares
from
American
to
by the principal
selling stockholders.
the
of
any
chased
the
72.500
Mich., in
cents for each
$1.50
There Is no firm com¬
fee
Detroit,
at
company
underwriter
finder's
a
in
undesirable,
adding other bonds that
add
have not been prosperous at all.
-
part of 34,000 shares
any
or
principal
of
part
any
stock
Lloyd and all
The
Is
the option. until close of business
31.
there
bankers —and
ment
•
,
then,
many prosperous years
utilit)
electric
principal, underwriter
Offering—The
common
While
bonds that
become
or
sistent, it is not
letter to affiliated deal¬
a
under dateline of Nov.
"Since
Ohio
share
called
Of
1,
com¬
-
be consistent with
shares
ers
Dec.
changes
new
of* the first public offering
of Incorporated Invest¬
was
expect to make
in
our
eligible
we
Ceiling On
Profits—Standard of Ethics One Of The
bond
July
was
of that date.
as
list, eliminating
anni¬
if
v
certain
eligible list
future
some
ors," writes the Parker Corpora¬
atocic
granted
seventeenth
the
criteria
,
gi3tered
i
the
Investment Company Briefs
;
v-
Our
pleted
be
versary
UNION
1940.
date
Securities Dealers Need No
change
we
high yield.
a
"Our
and
to defer
1942,
tain
inc."
■
date
investment
our
page
,
1975
earnings estimates on leading air¬
craft -manufacturing
This year's
companies.
sales of the ten com¬
Dougal and Condon, Chicago
mu¬
nicipal firm, until he joined the*
Armored Division.
THE COMMERCIAL &
Thursday; December 3, 1942
FINANCIAL CHRONICLE
1976
E. H. Rollins Elects
BONDS WITH
BIDS MADE ON
GOUPONS MISSING
job in the history of the world is
under way now.
You know this as well as any one, it is to be
presumed, for salesmen of top calibre are at your institution now or
will be in a day or so.
The nation's commercial banks have been
organized into their own sales groups on the basis that it is better
that they place bonds with non-banking sources than that they take
them down themselves.
.
The nation's investment bankers have
been organized under the Victory Fund Committees. . . . The na¬
tion's Stock Exchanges are doing a job on their own too. . . . There's
no
point in repeating the well-known facts. . . ; The December
drive to raise $9,000,000,000 from sales of bonds, certificates, war
bonds, tax notes to every source of funds available is the news of
the day and the week. . . . Of all the securities available on the
Government list today, the 2.9% war bonds are the most attractive-—
if you can buy them. . . . Next on the list are the "on sale" 2V2S—
if you can buy them. ". . . Next on the list are the securities which
fit best into your portfolio as it stands today. ...
These are facts.
As for predictions, as matters shaped
up the week before the sale went on and as they shape up to¬
day, it appears certain that Secretary Morgenthau will get his
biggest single financing
The
.
MUTILATED
.
.
S. H. JUNGER Co.
Teletype N. Y.
4-4832
DIgby
....
York
Exchange PI., New
1-1779
Urges Making This A
'Carry Christmas!'
CHRIST¬
"Make this a CARRY
MAS!"
Distillers
Schenley
says
Corporation in their newspaper
advertising for Schenley Royal
Reserve.
-
This is
:
;
new
a
.
.
000,000,000
trayed by a man smilingly carry¬
ing bundles and packages in his
superb.
to
Christmas
and
carry
more
possible that the commercial banks will supply only
one-third of the funds obtained. ... Of course, their subscrip¬
bonds" and certificates afve limited to
subscriptions may reach $12\000,000,000
•
■'%
'•
.-IV1
•
tions to the "bank
000,000,
end.
*
.
.
and
'
companies may send in more
your
courage
bonds.
Stamps
pocket ... to carry faith,
and firm hope constantly
in your heart.. . ." Because it re¬
flects the spirit of every American
this Christmas, Schenley makes it
"Carry Christmas."
This
advertising, handled
a
The Kleppner
in
$4,000,at the
than $1,500,000,000 and
they'll supply at least $1,200,000,000. . . .
As for war bonds, much here depends on
has with its efforts to swing the
funds distributed this week from gift
Bonds
maybe $2,000,000,000 or $3,behind this campaign is
for the organization
...
Insurance
is the
home War
regularly in
.
It's
waiting at a bus stop. But
more
than saving gas, tires and
solving the delivery problem, it
reflects a spirit that makes "Carry
Christmas"
hold
more
than a
arms,
practical connotation.
It tells you that "this
.
$9,000,000,000. . . .
It's probable he will get more,
theme for a new
A theme that is por¬
Christmas.
.
.
.
inquiries Invited
Phone
Mexican External
National Bank of the City of New
OR
40
Convertible Preferred
vice-president of The Chase
a
as
Penn, Central Airlines
retired
Jonas C. Andersen, who
ury
.
.
.
the success the Treas¬
$400,000,000 of Christmas Club
and cultural purposes into war
May, 1942, has been
elected a vice-president of E. H.
Rollins & Sons, Incorporated, in¬
vestment bankers, 44 Wall Street,
New York City.
Mr. Andersen
was associated with the bank for
purchases of tax notes,
.
.
Company, will run
One
of
St., N.Y.
Teletype
N.
HAnover 2-8780
1-1397
Y.
months).
for
here
Nothing must stand
.
.
(stories about this impending change have been printed
So the rules go and if there are any more
in their way
.
.
.
pushed aside as easily.
stumbling blocks, they'll be
. . .
has meant much for years.
Not that the rule
.
The Reserve
.
,
informed
System has even admitted that in recent months and
ques¬
tioning commentators off-the-record that it was working on a new
measure for the adequacy of bank capital. . . . In 1843, the ratio of
ratio
capital to deposits was 200% and banks failed. ... In 1914, the
was 20% and banks failed. . . v At the end of 1941, it was only 10%
and few banks failed.
In June of this year, it was at 9V2% and
bank failures weren't even thought of.,... In the words of C. A.
.
.
.
Sienkiewicz, Vice-President of the Philadelphia Reserve Bank, in a
address to the National Association of Supervisors of State
recent
Banks:
•
■
_,
for
"It has been evident
a
j'
the traditional method
long time that
the capital-to-deposit ratio to measure the vulnerability
or exposure of a bank has been highly unsatisfactory because such a
simple ratio does not adequately measure a bank's condition. . . .
While no rule-of-thumb measurement of capital structure is entirely
of
using
adequate, it seems that the preferable method of attacking the prob¬
lem would be through some ratio between available capital and the
subject to
amount of assets
depreciation."
put it into easier language:
...
V
>
,
Governments are officially considered "nonrisk assets" in measurement of bank liquidity or soundness. ...
About the only restriction here is that commercial banks
maintain an average maturity of 10 years or less. ...
While nothing official has been said, the unofficial position
of the authorities is that banks should reduce as rapidly as pos¬
From
.
more
now
on,
"official" abandonment of
sible their investments in
ten-to-one
securities and should
margin of safety for depositors. ...
This rule is gone now—not by implication
New Frontiers For Ins.
Security Dealers Ass'n
Members N. Y.
25 Broad
of Governments.'.
must buy billions
banks
significant recent developments is the final
the time-honored banking theory that a
ratio between bank deposits and capital is a minimum
the
M.S. WIEN &CO.
Rhoades & Co.
NO HURDLES
150 newspapers.
Cfs.
Bought—Sold—Quoted
and was in charge
Department. Prior
was
associated with
he
this
to
To
which are mounting sharply.
Mexican Interest Arrears
of their Bond
Corporations, savings banks, estates, individuals must make up
the balance—and the general feeling is they will, particularly with
by
and Internal Loans
24 years
over
s ;V:
1
in
York
Bridge Works
Common & 6s of SO
Andersen Vice-Pros.
On "Governments"
Our Reporter
Ft. Pitt
ments.
.
'-■'%/
.
.
municipal
Govern¬
less-than-top corporate and
reinvest the funds in short-term
and not by "under¬
' ;>s.
this either, the un¬
An
interesting
memorandum standing" but by definite statement on the part of the bank regula¬
official position is that banks should set aside part of their current
has
just been issued by Huff, tory agencies—the Federal Reserve Board of Governors, the Con¬
earnings as a reserve against losses in securities other than Govern¬
Geyer & Hecht, Inc., 67 Wall troller of the Currency, the Federal Deposit Insurance Corporation,
ments at some possible future date.
.
j
:
/
;
;
the National Association of Supervisors of State Banks. . . . And
While nothing
for
Frontiers
"New
Insurance,"
opportunities
investigation
of fire insurance practices, which
will have, the Company believes,
results highly beneficial to the
capital stock insurance companies,
for, if present shortcomings are
outlines
which
created
followed
and
the
through
to
the
the
corrected,
costs
reduced,
for
managed
enlarged,
and
their
profits increased.
Copies of the
memorandum
containing a dis¬
cussion of the recent Federal ac¬
tion and the beneficial possibil¬
ities
chases of
INSIDE THE MARKET
to buy 66%% of the Government securities to be
12 months. ... Up to now, banks have supplied
about 53% of the war funds. ...
banks may have
sold in the coming
Report suggests commercial
be had upon request
Huff, Geyer & Hecht, Inc..
SHAKE
of the ten-to-one ratio and ex¬
subject was made by so many high
agencies.
(Incidentally, none of the stories out of Washington
actually mentioned the deposit-capital ratio; it was just taken for
plains why announcement on
.
Your Christmas
Giving
Analysts To Meet
The New
York
Society of Se¬
granted by observers.)
With
ness.
The Salvation
Army
.
.
.
Seth
of
.
; But
.
.vr
the "nod" is
pl^of
anotflr
■■■
the Treas¬
bank should invest that portion of its funds which,
examination of its own history in previous wars, it believes
maturing up to 18 months.
. .• One
way to
increase in de¬
posits since the beginning of 1940 and consider part of this as "pos¬
sible withdrawals."
Balance of funds may go into longer-term
Governments carrying satisfactory interest rates. ...
Report, around banks may be given relief from necessity of
maintaining reserves against Government deposits. * . ,
Graff & Co.
Seeley
.
.
lose,after the war in Governments
Only that portion need go into short-terms. .
find out what percentage may go is to measure the
.
.
.
.
The bond and investment group,
which
.
participants in the payroll savings
up
now
it will
been invited to partici¬
Bank-Farmers
nonetheless—until further notice.
trends is that a
pate.
of
policy might be advisable.
money
there
.after
and Herbert Wyeth of Shields &
Co. have
future date a
to 23,400,000 and goal is to add
10,000,000 to
the rolls before the end of the year, according to reports. . . .
One recommendation of an expert on Government financing
at 56 Broad Street, New York
City) will discuss the St. Paul reorganization plan.
Pierre Bretey
of Goodbody & Co. will lead the
discussion
in
which
Wendell
of Townsend,
nodded
wouldn't
it, because Reserve
knots now, when at some
tight
ury
p.m.
Reuss
is that Reserve System has
Also no official story on
tie itself into
Number of
of the society at their
15 luncheon meeting (12:30
road group
.
...
Another important report
approval of any bank borrowing from district Reserve institu¬
tions or sales of Treasury bills to Reserve at moments of tight¬
curity Analysts announce the rail¬
Dec.
.
.
want to
N. Y.
banks will be playing an even larger
than has been believed up to
part in the financing of the war
today. ...
Story fits in with official scrap
may
from
,^
'
Important report out of Washington recently, not confirmed
believed authentic, is that Reserve officials expect commercial
but
sources
scope
the better
should
be
growth of
companies
their
last real hurdle to all-out, more-than-possible pur¬
Governments by the country's commercial banks. ... The
with it goes the
Federal
by
,
.
entitled
City,
New York
Street,
official has been said about
City
Trust Company is
A
Chairman, will meet on Dec. 7.
.
.
BETTER MARKET?
tell and we won't know definitely until the
early January, but the feeling of experts is that
the market will become a better trading affair from now on. .
Belief based on fact that financings now are to go on every-othermonth basis, giving market plenty of time to rest and prices plenty
of time to move into line with each other between financing
It's rather early to
end of December or
R. Hoe
common
Vicana Sugar common
The Salvation
dates.
Spokane Int'l R. R.
Susquehanna Mills, Inc.
Into
particular portfolio than another.
Your Will
71 Broadway
,
.
any
.
.
.
ported in a quiet
Exchange
-
N. Y. BOwling Green 9-7030
w v.- -
year
Hall Teletype NY 1-61
,
rate, one of the best moves of the Treasury in recent
months has been to space the financings more widely, observers
believe.
Prices of Governments now—steady and well-sup¬
At
HAY, FALES & CO.
Members New York Stock
...
Some anticipations of switching volume in 1943. . . . Banks
and insurance companies and corporations realigning their port¬
folios as issues come out and one loan appears more suited to a
V
/
—'
market—reflect that conviction.
.
.
.
And trading
^develop just as it redeveloped in England after a
of adjustment.
^
@FedFRASER