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ESTABLISHED OVER 100 YEARS
Edition
1
In 2 Sections - Section
ommetcia
Reg. U.
Volume
New
Number 4242
158
S. Pat. Office
W.
H.
Prentis,
Jr.,
Calls
Stable
Job
s
J.M. Keynes, Tiade Cycles,
Management To Sell
On
Reconstruction
.The statement that the members
political philosophers, both when
of Congress "constitute the only
dependable defense line that stands between the American people
are right and when they are wrong, are more powerful than is
and national socialism," was made by H. W. Prentis, Jr., President of
commonly supposed.
Indeed the world is ruled by little else." So
the Armstrong Cork Co,, early this month in addressing annual conven¬
wrote JVM. Keynes in his famous book, "General Theory of Employ¬
tion in New York City of the National Association of Manufacturers,
ment, Interest arid Money," Harcourt Brace and Co., New York, 1936.
mwhen he spoke on "Management's Job."
He stated therein that
p. 393.
Certainly each conscious action springs from some idea.
<$dustry
plans
;
Lord
Key¬
nes'
for
ideas
own
"fluence.
•
of
NASD
most
Complicated Disclosure Rules And The
Spread Maximum Violate The In¬
tentions Of Congress, The Spirit Of The Law, And All
Known Economics Of Price Making And Freedom Of
Both The SECs
sions
and
cyclical
unemploy¬
e
p r e s
ment
NASD 5% Gross
be
can
avoided
or
|
mitigated
by
the
simple
of
process
a
b
|
Enterprise—This Is Bureaucratic Regimentation Sub¬
stituted For The Freedom Of The Market Place.
g
d oning '
|
gold
a n
the
V
and
standard
an
n
postwar
.unbalanced
depreciat¬
'currency
the
at
op-
same
accord¬
ing to1 a bul¬
por tun'ity,"
and
he
de¬
time,
clared it to be
letin
management's
job to "take
"Stable
this
Economic
e
issued Dec. 29
by Dean John
T.
Madden,
ctively."
Pren tis
of
Director
out
that "that
Re¬
construction"
America, and
merchandise it
f f
Cur¬
A Pre¬
requisite For
better
a
entitled
rency;
program
for
pointed
managing
immediate
budget and d' ^
fluctuating
ing
Mr.
By RAYMOND MURRAY
economic
avoid
to
the
prevent the
of
and
and
in
condition
yeal's —r, an
America
o f
e
|
to
post-war
dom
that
theory
the
Favors
period, each country will endeav¬
or with all means at its disposal
jobs and free¬
Rules Destructive Measures
familiar is his
d
Markup And SEC Disclosure
One
the
i
America
have; enjoyed
%nbrmous in-
order
In
chaos
better
a
—
International Organization
they
■i
It
Regards
Prerequisite For Economic
People And Congress
By FRANK CIST
Copy
Cnuency
Madden
Dean
Industry's Plans For Better Post-War America To
"The ideas of economists and
60 Cents a
Price
York, N. Y., Thursday, December 30, 1943
Institute
the
job
Dean
J. T. Madden
H. W. Prentis, Jr.
nothing in the Securities Exchange Act or the
money so as to
of
Interna¬
-just,as
Frank Cist
keep
interest
tional
Finance
of
New
York
Maloney Act that can clearly be construed as. authorizing would be. the
rates low.
Here are quotations
,<
the SEC or the NASD to require dealers to disclose to cus¬ case with any product in your University; ;
from his book showing how he
tomers their costs, profits or private business affairs and own business-rrinvolyes, first, ad¬ y The bulletin states: "A balanced
puts this idea.
On page 235 he
furnish written statements, confirming all;of these details vertising; second, sales promotion, budget and a stable external value
says, "The money rate of interest,
and third,
of the
There is
by setting the pace for all other
commodity-rates of interest holds
back investment in the production
of these commodities without be¬
ing capable of stimulating the
production of money which by
hypothesis cannot be produced."
And again on page 322: "Thus the
remedy for a boom is not a higher
rate of interest but a lower rate of
interest, for that may enable the
so-called boom to last. The right
(Continued
on page
2638)
selling.'', He stated that
before
cratic power
a
purchase
or
This abuse of bureau¬
sale.
should be called to the attention of Congress
for review.
telephone
"it is
not
structive
or
small transactions which take place
by mail make
a
spch costly and time
any
the
con¬
Such rules would clog the
suming red tape impossible.
flow of business and
over
volume could not be carried out that
enough to have
a
con¬
If it gathers
program..
dust in the archives of time it will
these
wholly
say.
endeavored to stabilize their cur¬
rencies
America."
"Manage¬
job," he went
to
on
V
because it
takes the best from the America
has
that
prove;
.
and
been
.
seeks
it for the better
to
im¬
America
unnecessary
record keeping
value either to him
processes
(Continued
.
the customer.
or
which
on page
Moreover
(Continued
population—
on page
2640)
'
United Lt. & Rwy.
NEW YORK STOCKS,
Light & Pwr.
in
the
on
York
New
NEW YORK 4,
25 Broad SI.
.
HAnover
N.Y.
4
Established 1927
INVESTMENT
Rep.
Geneva
Albany
Buffalo
Pittsburgh
Williamsport
Troy
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Syracuse
Dallas
Actual
Trading Markets, always
BROKERS <iiid DEALERS
1
n'%7-
'J(V
•;'A ' at;
;
•
n
krj
\Jn •"
.
'
Prospectus oh Request
•
,
W.
•
i
LONG
and
COMPANY
634 SO. SPRING ST.
JERSEY CITY
LOS ANGELES
;
service with
Chase
H ardy & Co.
Members New
facilities
York Stock Exchange
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York Curb Exchange
Members
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Tel.
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New York 4
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Member Federal Deposit Insurance
Corporation
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England
Puroiator
Public Service Co.
Kohbe' Gearhart & Co.
BULL, HOLDEN & C9
INCORPORATED
MEMBERS NEW YORK STOCK EXCHANGE
Members
St., New York 5, N.Y.
"
N.
Y.
Security Dealers
45 Nassau Street
Tel.
REctor 2-3600
Philadelphia
'
Ass'n
New York 5
Teletype N. Y. 1-576
Telephone:
ALL ISSUES
Products, Inc.
Securities
Bought—Sold—Quoted
OFtHE CITY OF NEW YORK
Welder Co,
V
TELEPHONE-RECTOR 2-63G0
CHASE
and Dealers
Federal Machine and
for brokers and dealers in
'bonds
14 Wall
THE
Broaden your customer
for Banks, Brokers
INCORPORATED
15 EXCHANGE PLACE
Over -The - Counter
■
..
i.
2655)
1
I
•'
i.
HUGH
BOSTON
State 8770
Teletype NY 1-210
_
SECURITIES
64 Wall Street, New York 5
PHILADELPHIA
CHICAGO 3, ILL.
135 So. LaSalle St.
2-0600
on page
correspondent
R. H.Johnson &Co.
Members Nea) York Stock Exchange
and, other Exchanges
Brokerage
Service
STEEL SERIES
Hirsch, Lilienthal & Co.
-
Bond
SECURITIES
Curb
Exchange
London
INC.
ort
Preferred
Dealt
(Continued
NATIONAL BANK
Common, W. I.
United
bud¬
the recognition of the rights
of all classes of our
2646)
their
balance
and
Gradually,
each
nation
struggled back to the time-tested
prerequisites
for
healthy eco¬
nomic conditions and by the late
gets.
It rests
tual trust, not suspicion.
upon
no
national
them to approve it
serve
necessary to pay the overhead of the average ahead. It is based on facts, on ex¬
dealer, if his time and labors must be consumed in perience', on performance, on mu¬
of
sound
considered
of a
economy.
This
were
the .keystones
decades
"is to take it to the people and get
ment's
would be
are
currency
for
principle was adhered to by most
nations prior to World War I, and
after the war all countries again
never
The many
small
For index see page 2660
completing
Enterprise 6015
HART SMITH & CO.
REYNOLDS & CO.
Members New York Stock
52
120 Broadway, New
Telephone:
York 5, 3ST, Y,
IRA HAUPT & CO.
Members
New York Security
Exchange
Dealers Assn.
WILLIAM ST., N. Y. 5
Bell
Teletype NY
HAnover 2-0980
1-395
REctor 2-7400
Bell,,Teletype NY 1-635
New York
Montreal
Toronto
Members of
Principal Exchanges
111 Broadway,
REctor 2-3100
N. Y. 6
Teletype NY 1-1920
THE
2630
Trading Market* in:.
We Maintain Active
Preferred
American
w
S.
Markets iri
-
Goodbody & Co.
Established, 1920
10
York Security
Exchange PI., N.Y.
BELL
Telephone BArclay 7-0100 '
Members New York Stock Exchange
25 Broad
Members
York Stock Exchange
New York Curb Exchange
New
,
NEW YORK 6, N. Y.
*
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115 BROADWAY
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;
•
Other Principal Exchanges
Y. Stock Exchange and
Members N.
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NY 1-1557
La.-Birmingham, Ala.
New Orleans,
Direct wires to
Tel. REctor 2-7815
;
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I
,
St., New York 4, N. Y.
HAnover 2-0700
YORK
120 BROADWAY, NEW
;
:
our
branch offices
TELETYPE NY 1-423
Discusses Dr. Anderson's Article On
Axton-Fisher Tob,, B
Elk Horn Coal, Com.
& Pfd.
James A. Howe Suggests
Des Moines & Sou.
Ft. Dodge,
Pittsburgh Hotel 5's, *62 & '67
A. B. Van Buskirk Is
American Util. Serv. Pfd.
Elected V.-P. Gf
New
That Question Of Blocked
PA.
PITTSBURGH,
.
Securities
liam
1uj
Penn
Stock Exchange
Members Baltimore
120
Broadway,
N. Y. 5
WOrth 2-4230
on
•V
kirk formerly
deputy to E.
•
Financial Chronicle:
Stettinius
in
"Post-War Foreign Exchange
istration,
of
most
owe
its
creditor
(3)
Taggart Corporation
that
of
the
Preferred
United Cigar Whelan
Preferred
Vanderhoef & Robinson
beyond
capacity
York Curb Exchange
Van
what terms. The results
arm's length
bargaining i be¬
and upon
oi
tween
borrower
and
lender
are-
Buskirk
secre¬
of
Chief
of
-
became
Smith,
Telephone COrtlandt 1-4070
System Teletype NY 1-1548
: i-
Indiana Limestone
19S2
likely
to
be
to
more
*5%
&
Debentures
5Vi%
Common & Preferreds
-
flmer.-La France-Foamite
5'/2s,
1956
New York A. C. 2s,
1955
*
Dealt in
New
on
York Curb Exchange
Penn¬
with
1924
Reed,
McClay, Pitts¬
later becoming
&
*
Elec.(Va.)
Central States
Justice
the
associated
Shaw
Teletype NY 1-1919
Bell System
the
sylvania Supreme court. In
he
as
realistic and burgh law firm,
better, both for the borrower and a partner. In 1941 he accepted the
pay.
Possibly
the lender, than the results of call
Dr. Anderson
to
Government
service
in
loans, the size and terms of which Washington. He resigned Decem¬
himself ex¬
are dictated by
borrowers alone. ber 17 from the Foreign Eco¬
James A. Howe
pects
too
Dr. Anderson also calls attention nomic
much from too
Administration, into which
correctly to the political advisa¬ Lend-Lease had been merged. Mr,
small credits.
bility of extending credits through Van
Buskirk
will
assume
his
However, few persons emphasize
sufficiently
the
adverse
effect private rather than through gov- duties with Mellon Securities
(Continued on page 2645)
uoon
the
borrowers themselves
Corporation January 1.
Bell
6s,
B.
Bus¬
years
the law
A.
■
WHitehall 4-8120
65 Broadway
served
tary
■
the
of
borrowers
New York 5
31 Nassau Street
clear that
reasonably
seems
lender, the United States
should have the right ; to deter¬
mine what loans it will extend,
be
will
them
Neio
It
Exchange'
Members New York Curb Exchange
School,
Yale, Class of
1918, and the
University of
Pennsylvania
Law
School,
two
the chief
d
to
make suggests
that many of
e
Members New York Stock
graduate of
kirk"
,
ex-
are
t
as
Mr. Van
likely to be narrower than is
often assumed.
organiza¬
p e c
-
are
which
tions
repay
by the
productive and export capacity of
the borrowers. These limitations
the
loans
ability to
the
upon
them, which are imposed
the
size
Members
tions
countries, and
Common
ade¬
quate consideration of the limita¬
liabilities
to
MacMillen Co.
A
Hill
without
created
credits
of
Edward A. Purcell & Co.
Lend-
vice president
and
director.
to
and
tries,
the
Lease Admin¬
.
Teletype N. Y. 1-1227
Dumont Lab.
has announced
Place,
Stabilization"1 in
the "Chronicle" of Dec. 16, Dr. Benjamin M. .Anderson notes that the
organizations proposed by Lord Keynes and Dr. White (1) will be
dominated by borrowing countries, (2) that the proposed clearing
organization is likely to hold assets due chiefly from debtor coun¬
article
his
In
England P. S. 7% PI. Pfd.
the election of Arthur B. Van Bus-
R.
11
New
Mellon
525 Wil¬
—
Corporation,
Guaranteed By U. S. Government.
Editor, Commercial and
England P. S. 6% PI. Pfd.
Mellon Securities
Sterling Balances In London Be Solved By Sale Of
5 Billion Issue Here By Great Britain To Be Partially
Common
&
4's
Stabilization
Post-War Exchange
Consolidated Mach. Tool Units
Bell
Steiner,Rouse&Co.
When Issued
KING & KING
New
Walworth Pfd.
CANADIAN UTILITIES
Delaware Power & Lt.
Osgood, Common
Warren Bros. Class "B" & "C"
CANADIAN MINES
-
Birmingham Elec. 7%
Remington Arms
(
CANADIAN BANKS
United Gas Improv.
Members
Birmingham Elec. 6%
Cyanamid Pfd.
Botany Pfd. & Common
CANADIAN INDUSTRIALS
Triumph Explosives
-
December 30, 1943
,.
Hearst Publishing
Common
> Thursday,
COMMERCIAL & FINANCIAL CHRONICLE
Frank C.Masterson & Co.
Members New
•
WALL
64
York Curb Exchange
YORK
NEW
ST.
5
2-9470
HAnover
Teletype NY 1-1140
RAILROAD
BONDS
Struthers Wells
Common
1944 Outlook For Business And
Preferred
&
account
of
gressional
20 Pine Street,
Bell
Political
3-1223
Teletype NY 1-1843
and away
from New Deal policies,
gardless of who is elected
Presi¬
dent.
ACCUMULATION OR PLACEMENT
of large blocks of
OVER-THE-COUNTER
erally agreed, will last
to
Y. Security Dealers Assn.
a
Hanover 2-4850
St., N. Y. 5
$140,000,000,000
be duplicated in 1944, if not
exceeded, as it has risen during
.
Unless
ends
six months
taxes will absorb
000,000.
think
that
$40,000,'-
•
VA'
-
Taxes
The new tax bill should bdcoihe
the war with Germany
we
nearly
'
IV.
National Income
early
is
$90,000,000,000
About
scheduled for war expenditure and
longer.
HI.
1-1126 & 1127
Bell Teletypes—NY
year
executives.
Japan, it is gen¬
The conflict with
SreeneanACompon^
K
BUCKLEY BROTHERS
Sylvester P. Larkin, member of
the
New
become
York
Members New York Stock Exchange
Stock
Exchange,
in Pflugfelder, Bampton & Rust, 61 Broad¬
63 Wall Street, New
partner
a
way, New York City, New York
Exchange members.
Mr.- Larkin
this
law in January. It apparently will
(Continued on page 2643)
,•
■!
York 5, N. Y.
WHitehall 3-7253
Direct Wires to Philadelphia & Los Angeles
.
has-been active
a
as
an
individual
In the past he , was
floor-broker.
partner in S. P. Larkin & Co. v.
Eastern
The End of War
by far-sighted business
37 Wall
about
of
income
may
prices.
STOCKS & BONDS
N.
record-breaking national
year's
1943, and present monthly amounts
are likely to extend into next year,
The expectation, now is that the
added to by some wage increases
defeat of Germany will come by
—these factors probably offsetting
late spring or the summer.
Of declines in the second half of 1944.
course, it may occur unexpectedly
Public
purchasing power,; how¬
at any time, and therefore prepa¬
ever,
should be little if / any
ration
for
immediate
post-war
greater, due to taxes and; higher
conditions is already under way
II.
Exceptional Facilities For The
Members
of recent elections a
detect in the results
Republican Party ^
Republican House is likely re¬
A
f
-
•
,
observers
trend toward the
Admits S. P. Larkin
has
'
The Elections
.
I.
,
New York 5
Telephone: WHitehall
least.
Germany at
wit h
H. fi. BRUNS & CO.
Securities |
outstandingly eventful on
two factors; the certainty of a Presidential and Con¬
election; and the probability of the ending of war-
coming year is likely to prove
The
Thomson & McKinnon To
Minneapolis & St, Louis Ry.
Admit A. Mansfield, Jr.
CHICAGO,. ILL.
Alfred
—
Ohio Match
W.
Mansfield, Jr., will he admitted to
Thomson
in
partnership
Kinnon^ members
York
Mc¬
Tokheim 03 Tank &
New
of Jan.
1,
Mr. Mansfield will make his
in / the
headquarters
231
office,
cago
Penr. Pankshares & Sec. Pfd.
-
firm's Chi¬
South La
Salle
Frederic H. Hatch & Co.
Incorporated
|
NewN York 5, N. Y.
63 Wall Street
.Bell
Teletype NY 1-897
Conv.
FASHION PARK, Inc:
1944
4s,
4'/is,
i960
Deb. 5s,
Chicago & Alton
Common
Missouri Pacific
Gen.
4s,
Refunding 5s
6s,
&
1945
G. A, Saxton & Co., Inc.
I
170 PINE ST.. N. Y. 5 WHitehall 4-4970 I
I
''
Simons, Unburn & Co.
Members New York
25 Broad St.,
HAnover
2-0600
William Street,
68
N.
Tele.
Y.
NY 1-219
NEWARK:
201 Devonshire
744 Broad St.
St.
Y,
MUNICIPAL,
RAILROAD, PUBLIC
&
Security Dealers Ass'n
Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
INDUSTRIAL
INVESTMENT
UTILITY
BONDS
STOCKS
74 Trinity
Private
Wires to
Detroit
-
Buffalo
Pittsburgh
-
-
Cleveland
St." Louis V
PITTSBURGH
•
RAILWAYS CO.
Estimated net earnings
for 1943
rr
after taxes > v".
-
Knowledge
Experience
».
,
,
.
.
•
for Investors
facilitiesl
.; w
$4,500,000
(Equivalent to over 11% on total bonded
indebtedness )
Present cash and equivalent
•
Stock Exchange
New York 4, N.
New York
BOSTON:
GOVERNMENT,
Members
C/Ds
Teletype NY 1-609
Remington Arms;
Troster,Currie&Summers
Bought—Sold—Quoted
1931
'Members New York Stock Exchange
:
Preferred
Seaboard Air Line
5s,
Bonds
«
:
FASHION PARK, Inc.
1975
R.W. PRESSPRICH 8i CO.
Common & Preferred
FASHION PARK, Inc.
1949
3s,
Talon, Inc.
1963
>.
Street, -v""
•
Baltimore & Ohio
Pump
Exchange and other
Stock
leading Exchanges,' as
1944.
&
the
of
Sugar Associates, Com.
Lawrence Portland Cement
Bonds
Selling
.
.
.
under
13,090,000
50%
Interesting late developments
,
Special letter
available
1
<
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T. J. FEIBLEMAN & CO.
Members
New
Orleans Stock Exchange
41 Broad Street
BOwling Green 9-4433
New York 4
Tele. NY 1-493
^Volume 158
The
,
CHRONICLE
Reg. U; S. .Patent Office
,
William
B.
Dana
•
Company
BEekman
interested in
are
Chicago Rwy. Equip.
3-3341
William
Dana
Business
Published twice
Spencer Trask & Co,
Welch Grape Juice
week
a
(general
,
Telephone HAnover 2-4300
Kellogg Company
advertising issue)
and
news
right
Members New York Stock
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Exchange
STRAUSS BROS.
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i
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,
Wall
New
Ass'n
Security Dealers
York
America's Sole In China's
CHICAGO 4
NEW YORK 4
Harrison 2075
Teletype CQ 129
DIgby 4-8040
Teletype NY 1-832, 834
Post-War Reconstruction
.
By HENRY €. CHEN, Ph. D.*
•'
Huns!
WHitehall
4-6551
TITLE COMPANY
Board of Trade BIdg.
Broadway
the
Street, New York
Telephone:
'>(oomplete statistical issue—market quo¬
tation
records,
corporation,
banking,
clearings, state and city news, etc.)
and help make
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to
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and every Monday
i
now
guns
Thursday
4th
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'
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Get into the
•
Manager
Thursday, December 30, 1943
t
BEAT THE GUN!
H. H. Robertson
President
Seibert,
Riggs,
AND COMPANY
PREFERRED STOCKS
Editor and Publisher
William,, D.
llCHTfflSTfin
B. S.
Public Utility and Industrial '
Ralston Steel Car
Herbert D. Seibert,
offerings of
High Grade
/
25 Spruce Street, New York 8
;
We
Seiberling Rubber
.
Publishers
|
2631
COMMERCIAL and
FINANCIAL
•u,
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4242
CERTIFICATES
BOUGHt
,
.
SOLD
-
QUOTED
'
Copyright
1943
Reentered
by
as
William
Dana
B.
second-class matter Feb¬
PRUDENCE
ruary 25, 1942, at the post office at New
York, N. Y., under the Act of March
■'
3, 1879.
■■■
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CORPORATION
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Subscriptions in United States and
Possessions, $26.00 per year; in Dominion
Of Canada, $27.50 per year; South and
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Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
PRUDENCE COMPANY
ALL ISSUES
NOTE—On account of the fluctuations
tn the rate of exchange, remittances for
foreign subscriptions and advertisements
must be made in New York funds.
with regard to
China
which
Bought—Sold—Quoted
Newburger, Loeb & Co.
40 Wall
New
York
Exchange
WHitehall 4-6330
St., N.Y. 5
Bell
Stock
was
NY
Teletype
1-2033
u
of
even
a
'The gallant
fight put up
by
the, Chi¬
nese
against
5% Decree Not Subsiding
evidence
more
comes
to hand indicating that
parts of the country over the
in all
pernicious 5% mark-up rule has not subsided one
iota. Even large dealers who are not adversely affected by
the mark-up rule have made it clear that they, too, oppose
NASD's
it.
seven
Note
Moxie Co.
—
-
doubt
no
his
with
case
Mo. Kansas "A"
an
(Continued
*
Request
on
J.F.Reilly&Co.
Members
New
on page
2648)
York
s
Security
Dealers
Assn.
REctor 2-5288
Bell
decent
Prospectus
ill Broadway, New York, N. Y,
the Chinese Dollar."
has
Wickwire Spencer
.
paper
appearing in our issue of Decem¬
bearing the caption uThe
Prospect for the Stablization of
ticipation in
—
the
(>
Federal Water
this
of
ber 16th
Chen
C.
Henry
the ■ recent .Cairo Conference
which
because
it is perhaps the manifesta-
was
as
par-
occasion
grateful
more
Agency of the Bank
of China, only he as author of this
article,
is
responsible
for the
opinions expressed therein, just
with
China's
another
Aviation Co.
anything
is
there
the New ,York
years
together
*CIark Electronics &
Although Dr.
Henry C. Chen is associated with
ag¬
Teletype NY 1-1203
System Teletype, N. Y. 1-2480
One official of the
no
-
if
would be
*Editor's
dur¬
past
.
6, N. Y.
HAnover 2-8970
much interest in this
so
we
than
for
war,
Japanese
More and
which
short
gression
ing
the
Broadway
first-rate
a
Indeed,
n-
..
as
absorbed
while ago.
Wiath Of Dealers Over NASD
the wrath of dealers
tion
in¬
ad-
dreamed
Members
39
country.
an
established
firmly
maga¬
—
CO!
i
INC.
Members New York Security Dealers Assn.
New York
vancement
in
Information
LJ. GOLDWATER S
.
China's posi¬
power—evi¬
dently is the circumstance under
which the subject concerned has
and
Statistical
tasks which will confront China in the post¬
undoubtedly the
,
tellectual
,
$35 yr,
Complete
industrialization of her devastated
economy.
This aspect of the post-war reconstruction program has
recently captured the attention of many intelligent people in this
country.
Here and there the subject is discussed with serious earn¬
estness, and articles* of unusual importance appear frequently both
is
years
zines
Bank and Quotation Record—Mth. $20 yrf
Monthly Earnings Record—Mth.. .$20 yr.
State & Municipal Compendium—
.
of the many
One
war
in newspapers
Other Publications.,
Semi-Annual
I
■
Company
Association said he was convinced that
thinking person"would attempt to justify the raw
manner in which the rule was foisted upon the membership
and that he for one did not intend doing so any longed.
*
Employees7 Trusts'
grumbling is heard over the attempt of the Asso¬
ciation to make dealers curtail their mark-ups despite.the
fact that dues have been increased and the affairs of the
Association conducted in. an extravagant manner from'the
expenditure of huge sums for legal fees down.
Again we say it is fortunate that most dealers seem to
be conducting their business just as was the case before the
'5% rule was decreed and that it is to the credit of many
field of
Employees' Trusts, primarily through the creation and ex¬
of pension programs.
A large number of factors explain
for this growth and development.
The creation of reserve
funds to meet these business problems is not of recent development.
In a period of high corporate earnings, coupled with high corporate
the
v
and ®
;
profit ity benefits and to provide incen¬
taxes, industry tives for greater production.
..:
that
on
its
own
fee'ti*
,
and
honest, conscientious and
to
for
for
their
terms
e
laws
tax
Govern¬
Social
month
ment has
given
enco u ra
ge-
ment .to the development of such
plans to supplement Social Secur-
of their fundamentals than
at the New School for
*An address made
employees.
T h
in
thinking, there is little likelihood
of shifts or changes in the tax
structure.
It is more important
that pension programs and profitsharing programs be analyzed in
aged
means
sion
fundamentals
follow the fundamentals of sound
making provi¬
v
COrtlandt 7-6190
Teletype NY 1-84
SUGAR
damentals, and to the extent that
these
ages
employers
find
Irvih Bendiner
Bell System
however, that tax laws
eventually establish certain fun¬
further
w
encou r
tainly doing a good job in convincing all concerned-that Be
is not in the least interested in the welfare and well being of
countless number of small,
salaries
have
by his failure, as. Chairman of the SEC,
compel the NASD to rescind this rule, as it is mandatory
that he do under the provisions of the Maloney Act, is cer¬
thoroughly American dealers throughout the country, who
in the last analysis constitute the backbone of the nation's
investment business. Over nine weeks have gone by and still
not an eye lash will he blink while he sees fundamental
rights guaranteed to all of the citizens of this country denied!
these jsmall dealers. It is indeed a sad commentary on the
democratic philosophy of government which the nation is
now fighting to extend to the oppressed people of
Europe
and elsewhere on the globe, to see the same rights arbitrarily
snatched from the Bands of one segment of this country's
population.
•
plans.
Limitations
upon
to
170 Broadway
evolutionary
are
serve,
of such
Ganson Purcell
the
laws
character, and shift and change
with experience and with current
conditions.
It. is proper to ob¬
development
-
J:.V::
"=■
tax
in
and
profitable
to
encourage the
Congressmen are becoming interested in the
of both the NASD and the SEC with respect to the
5% decree.
The
it
found
has
possible
various
conduct
IMUIj
Hi
excess
the days go by it become^ increasingly obvious
as
New Year
Est. 1926
rates
tax
discipline a dealer for having "taken a mark-up of
And that is as it should Be..'Each transac¬
And
■
reason
than 15%.
tion should stand
:
Happy
and Victorious
pansion
they are ignoring this illegally adopted rule; too.
last week we heard of one such Committee that re¬
fused to
more
a
l
;
witnessed.a great development in the
last few years have
ciation that
In fact,
.'
By 1RVIN BENDINER
The
Committees of the Asso¬
members of the Business Conduct
BEST WISHES FOR
Including Pension Plans, Pension Trusts and ProfitSharing Plans
Much
■
Research
as
symposium
a
on
of: which
time
latter
the
contribution
Federal
Alex
M.
part
to
of
the
last
weekly
Taxation
is Chair¬
•
DUNNE
CO.
Members New York Security Dealers Assn.
25
Broad
St., New York 4, N. Y.
in War¬
Hamburg
SECURITIES
Tel. WHitehall 3-0272
man.
(Continued
,
on page
2642)
.
,
As
was
our columns last week,
organized
5% rule upset will shortly be apparent.
Individual dealers and dealer associations all
over
the
coun¬
try must exert themselves to the utmost to have this rule
rescinded. They may be sure their efforts will not be in
.
.
(Continued
on page
2657) '
ijjic Qooit
Secu/uUel
r
1927
"A"
and
"B"
Chicago City
Connecting Rwy.
5s,
1927
Delaware
Power &
■
Light
Common Stock
(When issued)
,
.
mentioned in
efforts to have the
Chicago Railways
5«,
.
"
.
;
,
Wyeth
*
&
Co.
Since 1893*
NEW YORK
1
LOS ANGELES
HoixRsseSTrqster
Established
74
Members Los Angeles Stock Exchange
1914
C. E. Unterberg & Co.
Members New York Security Dealers Assn.
Members N, Y. Security Dealer$ Asm.
Trinity Place, New York 6, N. Y.
Telephone'.
A
Teletype:
BOwling Green 9-7400
NY 1-375
61 Broadway,
New York 6, N. Y,
Telephone BOwling Green 9-3565
Teletype NY 1-1666
Thursday, December 30, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
2632
BOSTON
"
i»
,
,
_
/
TRADING MARKETS
CRQ WELL- COLLIER
field 9P,
•
BIRD & SON
PUBLISHING CO.
COLONIAL STORES
Exchange
Members New York Stock
?
\
f
Bought
Sold
-
-
REMINGTON ARMS
Quoted
UNITED ELASTIC CORP.
Had fj/rcet, kAew f/vrA
i
UNITED STOCKYARDS, PFD.
Goodbody & Co.
pleased
are
to announce
and Other Principal Exchanges
Members N. Y*. Stock Exchange
that
115 BROADWAY
BARCLAY
TELEPHONE
du
CHICAGO
NEW YORK
mr. carroll coleman
.;
105 WEST ADAMS ST.
K
-
:
7-0100 :
V
BOSTON
mr. leslie H. thompson
tsolainos
Mr. Theodore p.
"
.'
A V A IL A B LE
We have the following
the firm
have heen admitted to
1—Basic
as
5-page
general partners.
Western.
2—Recent
2-page writing
showing connections.
3—Our
10-page
shall be glad to send
we
t
1
'
11
...
Pittsburgh
on
&
Idaho Power
V
financial analysis and. leased-line map
&
Lackawanna
analyses that
prospective customersi i'•>
and
customers
to
..
Common
.
bf the Delaware,
J
,
Virginia and
West
Teletype BS 424
PHILADELPHIA
^
R E Q U E S T
O N
MASS.
9,
"
Capitol '4330
mr. thomas f. lennon
61111111111
Shawmut Bank
TELETYPE NY 1.072
;
.
Pont, Homsey Co.
in1.'■
United Lt. & Rwy.
map
I.
W,
Common
.
analysis of the Boston & Maine
Railroad.
Public Service of Colorado
Common
.j'',
:
Investment Advisory Service
pi
v-f'A
GUARANTEED
:f ,'jE-
;
55
Members Philadelphia Stock Exchange
Members New York Stock Exchange ,r
'—"—~~~—-
o»r-v
January 1, 1944.' \
BUCKLEY BROTHERS
RAILROAD STOCKS-BONDS
"—
<Ju
York
New
Broadway
Philadelphia 2, Pa.
Walnut St.,
1529
Bell Teletype
Phila. RIT 4488
Non-Federal Debt Declined In All
PH 265
—
N. Y. WH
,
Major
Categories In 1942, Reports New York Trust Co.
Contrasts With Nation's Experience
Let's Get
Together!
firm will welcome merger or
with
two
retail distribution and
considered
be
Address
have
preliminary figures indicate that! ness .declined $360,000,000 during
the
reductions
were: extended the past fiscal year, the opposite
even further during 1943.
of developments during the first
"This phenomenon is in marked World War; State and local gov¬
contrast to the nation's experience ernment debt was, reduced more
seeking survival
are
proposed restrictions. All inquiries
under the
will
private debt of practically every character has shown
significant decline, according to a report Dec. 27 by "The Index,"
quarterly publication of the New York Trust Co., and State and local
borrowings have followed the same pattern. The total decline of all
types of non-Federal debt was $3,500,000,000 during 1942, the first
cull year of business operations1^
1——
—■—
following the country's declara-i fell 60% in 1942, due to war regcion of war, the report states/ and illations; farm mortgage indebted-
confidential.
strictly
non-Federal debt advanced in al¬
Post Office Box 26, Trinity
8. J,
War' when
World
former
the
in
major category," says
foe analysis. Its summary of the
most every
Station, N. Y. C.
debt trend
since the former con¬
flict
provides this high-light pic¬
ture
of
conditions:
"The
Extensive Reconversion
*
Expected In 1944
characteristics, the steady expan¬
until
sion of non-Federal debt up
will begin
reached^its',peak and reconversion
has
Production
time during the first half of the year.
issue, devoted^
entirely to a forecast of major na¬ "it will be possible and desirable
tional
and
international
trends to localize production of the re¬
some
The
December
during 1944, predicts that the col¬
maining backlog in certain plants
tions—has followed the same
lapse of the Nazi regime will be
and convert others to civilian out¬
From peak point
to 1942, the aggregate decline of
the three forms of non-Federal
debt
was
more
than
$34,000,-
normal
the
by
.
relations
trade
these countries have considerable
and/or
gold
that
dollar reserves
will
control
eliminated
be
com¬
military
tuations will be
United
Nations,
control by the
in a state of
revolution and civil war, will re¬
supplies
ceive
States
the " United
from
relief
a
on
or
than
rather
regular commercial basis.
Po:'nting
out
that
in
plants and
many areas
the
a
many
recon¬
the
in
has already begun,
Mr. Zelomek emphasizes that this
process will be stepped
After
payments".-
affect total wage
Rapidly
during
even
fkirly
early
up
the
This trend
fnonths of next year.
In
the War,"
ciple
power
"Production
tion.
is close to its
WPB
peak at the present time.
of
and
of
Some
be
production
1943
When
the
at
the
year
tapering
off
end.
of
.
.
some
production programs and the
reconversion
tain
year
implies no gains from levels
existing
war
next
20% higher than in
trends
reach
a
cer¬
point, the "Service" predicts,
"Europe
pred^m&i^
principle of
some
Government
survey
adds:
"The railroads, for
example, re¬
debt in
tired about $400,000,000 in
but the
1942,
not
more
net reduction
than
$325,000,000
with
ties
will
t
be
influences
within
of
pected to exceed this amount by
a .wide margin, probably exceed¬
Russia's
cluding Germany, will be
control,
under
dominated
by American, Russian and British
influence.
and
effect,
bank
the
-
COrtlandt 7rl202
,
Interesting
An
In
a
York
Growth
Situation
Industry
Corporation
"/
ex¬
credit condition
4
COMMON
*
Analysis
on
request
of^thq |Dc|ivMual
Mason, Tenenbaum, Inc.
803
Landreth
Bldg.
ST. LOUIS 2, MO.
L. D. 240
Teletype-—SL 486
enterprise*? rot* *"■ feeen
strengthened, it. is maintained,
and capacity for post-war expan¬
business
sion has been enhanced.
1
■
^ i't
•
^
1
Otto
A.
Robert
C.
Pine
has
the
as
of
Jan.
formation
of
their
securities
through
Other disclosures
showed
that:
in the report
installment
sales
System
Teletype—-SL 80
1,
co-partnership of Berwald & Co.,
successors.
as
Members St. Louis Stock Exchange
Partners of Berwald & Co. will
Otto
A. -Berwald,
Charles
M.
Kaiser, 'and Frank Hoffenblatt,
&11 formerly officers of Robert C,
L.M. Kaiser Member Of
S. F. Stock Exchange
SAN
The
FRANCISCO,
Francisco
San
CALIF.—
Ex¬
Stock
has elected Leland M.
Kaiser to regular membership in
the exchange.
Mr. Kaiser is a
change
BIyth & Co. Opens New
Branch In Grand Rapids
GRAND
RAPIDS,
MICH,—
Blyth & Co., Inc., have opened of¬
$700,000,000,
inasmuch
as
of the carriers are taking fices in the Michigan Trust Build¬
advantage of the opportunity to ing in charge of Carl B. Dolbeare.
retire
509 OUVE ST.
Bell
the
many
purchases."
Co.
York City, which
dissolved.
been
&
SAINT LOUIS
Berwald,, President of
Mayer & Co., Inc., 30
St., New
announces
Stik
ing
sphere of influence; and some, in¬
international
cause
funded debt of the steam carriers
Britain;
Great
Phone to N. Y. C.
ST. LOUIS
of
example
clear-cut
of the issuance of equips ing distributors and dealers in do¬
tnent trust certificates and othei; mestic bonds and stocks and re¬
instruments during the year.
The organization securities.
mately $250,000,000, although the
amount actually retired
is ex¬
the
.
consti¬
war.
cause
of the Continent will
to
a
the '
wa4 jVTayer & Co., Inc. -The firm will
bej-j |ict as originating and participat¬
which matures in 1943 is approxi¬
areas
tutes4
be
international police force.
subject
strong
balance of
international
international
an
that
would average
■
will be abandoned in favoi^
an
Vice-Chairman Wilson's statement
war
the
approximately $1,000,000,000 during 1942 alone, but these
figures must take such considera¬
tions as these -into account, the
total of
national sovereignty nor the prin¬
in
lines of military produc¬
entitled
made that neither the
Will be coordinated with cutbacks
many
section
a
- - -
/
Formed In New York
the
important economic events
present conflict. The rail¬
roads, public utilities and indus-*
trials reduced their borrowings a
by
changes in wage rates,.
Shifts in
foe labor force from high paying
•manufacturing industries will, also
version process
Private
Berwald A Go, To ie
of the
than
work-week
declining
PH. 30
Pennypacker 8200
of corporate ob¬
reduction
The
ligations, during
most
between
ments will be more influenced by
a
BOENNING & CO.
St., Philadelphia 3
1606 Walnut
to $10,500,000,000 in the last half of the
'thirties, approximately four times
the volume during the previous
holds,
the report
Harbor,
will doubtless stand as one of
Wage pay¬
supply and demand.
reducing
Pearl
sensitive to
more
relations
changing
Stock
amounted
fundings
made by industry
funded debt since
The progress
many
under
Common
000,000."
pletely with the defeat of Ger¬
but there will be a decline
in. their effectiveness. Price fluc¬
they will use for trade with the
United States. European countries
es¬
sential pattern.
resumption Of put."
In his analysis of Government
only with
those countries having stable in¬ controls,
Mr.
Zelomek predicts
ternal administrations.
Some of that neither rationing nor price
followed
Bag & Paper Co.
$500,000,000 during the same
fiscal
period and corporate re-
The war created an in¬
1930; then a decline which plains.
proceeded even in the face of crease in revenues but at the
same
time prevented normal re¬
the unprecedented demands made
on
the country's productive ca¬ placement or expansion because
of shortages of materials and la¬
pacity by the present war. "Each
bor.
Expanded income and cash
component of this debt structure
reserves have been applied to the
—long
and
short-term
private
of debt.
The basic
debt and State and local obliga¬ repayment
price levels are predicted for next year, with the European war
ending
in
has
production and income payments and moderate rises
ate declines in
interest
about
during the first quarter of 1944, reports A. W. Zelomek, Editor, in
Post-War Service." Moder¬
the December issue of the "International
in
continuing
Southern Advance
five years.
v
a
than
period
was
wars
\
between the two
; marked by two major
have
We
since America
a
consolidation
small firms, who
more
or
In First World War
increasing continuously
Federal -debt
the
,
entered the war,
over-the-counter
successful
active,
Small,
With
3-^253
Mr.
Dolbeare
representative
was
for
formerly local
the
Michigan Corporation;
First
of
general partner of Kaiser & Co.t
Building.
Other members
of the firm'are: E. R. Foley, gen¬
Russ
eral partner,
and Allen E.
ners.
quired
The
by
Mitchum
of
and Walter D. Heller
Meier/ limited part¬
membership
purchase
for
$8,000,
was
from
an
ac¬
Colis
increase
$2,500 from the last sale.
Number 4242
THE COMMERCIAL & FINANCIAL CHRONICLE
•
;
*
\
■■
.■
Volume 158
'
2633
Chicago & North Western
Minneapolis, St. Paul & Sault Ste., Marie
In Rail
CANADIAN
Western Pacific
Reorganizations
SECURITIES^
New, When Issued
."
Interpretation of I. C. €. action in St. Paul case
Letter available
York
New
York Stock Exchange
■
.
Stock
;
Stock
Company
,
Clearing
Contracts
Slocks and Bonds
Only
pflugfelder, bampton & rust
„
Members
^New York 5, N. Y.
49 Wall Street
Exchange
Canadian Bank Stocks
Vilas & Hickey
Members New
Brown
Bought and Sold
Brokers and Dealers
to
61
'
Telephone: IIAnover 2-7900
New
York
Stock
Broadway
New York 6
Telephone—DIgby 4-4933
Teletype: NY. 1-911
Suit Life Assurance
Exchange
'
Bell
Teletype—NY
HART SMITH & CO.
1-310
52
WILLIAM St., N. Y. 5
HAnover 8-0980
BeU Teletype NY
New York
By EUGENE S. BROOKS
.
r
Approval of the New York, New Haven & .Hartford reorganiza¬
tion plan by the Federal District Court last week came as a distinct
issued its "Sec¬ surprise to the-financial community which had generally been conond Supplemental Report" revising the plan for financial reorgani¬ yinced .during court
hearings earlier this fall that no definite' action
sation of the Chicago, Milwaukee, St. Paul. & Pacific Railroad; Bank-' could be
expected for some months.
In general Judge Hincks up¬
rupted in June, 1935, the property had previously run a classic gamut held the Interstate Commerce Commission,
although correction of
of "Section 77" procedure; through the Interstate-Commerce Com¬ two errors
altered, and improved, *»
—
——
—•
mission, the Federal Court of Jurisdiction, the IT. S. Circuit Court of the allocation of securities to se¬
Commission recently
Appeals, and finally, the Supreme^
Court ,6f the United States. Of interest iii this latest
2,367,000 shares of old com¬
-V
«
loans will eventually be settled in
"
Old
$274,327,502
interest
182,873,693
interest debt;
"Contingent
of 1-1-44
as
Company—
debt—.
Fixed
795,462
Unsecured claims
202,302,367
^Unpaid accrued interest—
'■
New
Cash
An
organization meeting of the
Division of the Fourth War
was held on Dec, 17. Douglas
Gibbons,: President of the real
estate firm of Douglas Gibbons &
try
Loan
Chairman
the overall
is
the
section.
Director
Company-
payments
:
14 division Chairmen of the Pro¬
Co.,
$670,299,024
of
William
the
E.
Commerce
and
Industry Division of the War Fi¬
nance Committee, explained that
92,176,972
"Fixed interest debt——116,418,355 the professions section was one of
•Contingent interest debt—
111,347,846
•Preferred stock ($100)——
13 established for the purpose of
213,147,525
•Common stock^^—
bringing the Fourth War Loan
$533,090,698 message
in person, to approxi¬
Total capitalization
mately
2,500,000
employees in
*No par value—stated at $100.
New York City.
j
Annual charges of the old prop¬
Mr. Gibbons outlined the p»lan
erty amounting to some $14,500,- of
contacting the employees, ex¬
;000 of the "fixed" variety, and $9,*-;
ecutives and corporations,; saying
.100,000 "contingent" are... pared, that. the
group would be -respon•down to approximately $3,500,000
si ble. in having / appointed cpim'"fixed"
charges and. $10,900,000
pany representatives in approxi¬
"contingent" charges, to wit: ; , ,;
mately .2,500 "firms within the
"
*
••Fixed charges
Contingent
■
•
Addition
;
'
betterments fund
&
(1st)
,
$3,481,903; field.
charges1
2,500,000
■——
;
this
To' do
division
each
chairman ' was asked to appoint a
sufficient number of committee¬
First mortgage & sinking fund
148,788
.tGeneral mort, "A" bonds int.*
2,905,482
have only ten concerns or institu¬
2,500,000
tions to call upon.,
Additions
&
betterments fund
(2nd>
'General mort.
i.
—
"B"
that each volunteer would
so.
,2,313,995
bond mt,-.i
.Sinking fund for gen. morts.--,
men
543,394
-
Total
contingent" charges.—,^ $10;911,659
Total
annual
Nu-Enamer
been
•
"Including
Haute*:
terest
lease,
under
charges—: $14,393,562
fixed interest under-TTerre..
tlncluding contingent in-,
Haute" lease.
-
"Terre
,
Interesting
Railroad SeciiiffleS
:
■
■■
/.
- "■
..
,
.
INCORPORATED
123 South Broad Street
,
P H I L A D E LP H I A
i'
*
'•
120 Broadway
,
V.;
I
9
vNEW YORK 5
N. Y.-Phila. Private Wires—Rector 2-6S28 & 2-6529
In other
words, the collateral
allocated- its
full
securities but
as
amount
of
if'
"Rock Island" Reorganization
W'A $
J- W
*
*'
^
share
soon
senior
of
as
1,
,
securities
were
tional
junior
MINNEAPOLIS &
would
on
the
General Income 4s, 1996
General Income
"Scrip"
and
\
Stock "
':
\
Secured »6s, amounting to
Discussion
free
sent
on
request
148 State St., Boston, Mass.
Tel. CAP. 0425
Frederic H. Hatch & Co.
Rather
than
distribute
such a large block of securities
it is generally expected that the
6s, 1940 will eventually be paid
off in cash, a move made feasible
by a provision in the plan that
the maturity date of the 6s, 1940
$1,000.
Incorporated
63 Wall
Street
New York 5, N. Y.
Bell Teletype NY 1-897
! X
Teletype BS 259
\!n. y. Telephone HAnover 2-7914 f
mmmmmsmmmmmmmmmmmmrnmsmmssmMf
A Mi
A.
than
\$1,700 per bond even
though the claim is for less than
be
Louis, San Francisco
"New"
addi¬
collateral be distributed to holders
the
St.
ST. LOUIS RAILWAY
Now it is proposed that the en¬
tire block of securities due on the
more
GOl
NEW YORK 5
Teletype! NY 1-2050
R. R. Bonds
basis of their collateral position.
of
Appraisal of the
was
allocated to the 6s,
securities
S-8469
the face
even
though they.
been entitled to the
1940,
have
WALL STREET,
Kidder
&
Co., 1 Wall
Street, New York City, members
New York Stock Exchange and
other Exchanges, announce that
Vincent L. Ehrler, formerly with
Morgan Davis & Co.f has become
with them.
associated
3
received.
Also, prices for the new
on a when-issued basis,
will probably be adversely af¬
extended to six months after fected by the likelihood that at
actual consummation of the least the European phase of the
securities,
Estabrook & Go. To Admit
Newell To
vance
such
of last week.
Senior liens,
Housatonics, Central New
Englands, and New England Rail¬
roads, all of which are to receive
par for par in new 1st Mortgage
bonds, are also considered as rep¬
resenting good investment values
as
the
price* levels.
secured
under
on
the
tions it is doubtful if actual con¬
be
reorganization
expected- until
well into
1945 and it may well drag out for
as much as two years.
Thus at
the> present time it may be as¬
sumed 1 that
sell, to
of
the old bonds should
afford
around
:
an
25%
new
arbitrage profit
against
as
a particularly sharp
State Street, members of the New
earnings after the war York and Boston Stock Exchanges,
due
to
resumption of highway as of Jan. 1, 1944.
competition and the long term in¬
fluence of migration of industry
then sell at 59, or only 3 Vz points
the
securities to be
in
to other sections of the country.
above the closing price of last
Mortgage bonds week.
Near
and
intermediate
protected and even term profit possibilities on such a
in fairly early when-issued trad¬ basis are not considered as an at¬
ing should sell around 90.
Early tractive offset to potential price
prices of atound 50 for the In¬ declines
which
would
appear
comes
and 27 for the preferred
likely in the event of a series of
would
also
appear
reasonable. favorable war developments.
Such when-issued prices would
give an indicated value of approx¬
imately 62 lk to the Refunding
4^s (other bonds secured under
the. same mortgage would have
slightly different values based on
the smaller or larger claims for
back interest). With an arbitrage
spread of 25 % the 4 Vz s would
The
will
timing angle the appeal
a
bonds
Haven faces
drop
new
be
1st
well
.
Vicksburg,
Shireveport
& Pac. Ry.
We maintain active trading markets in:
'
.
l«»
*
.
1
■
Preferred Stock
"
•
,
SEABOARD 6s/45
v:)biqs-
dnr r
if|v
•
'
'
UK! f-\
SEABOARD 4s/59
request
SEABOARD-ALL FLORIDA 6s/35
Mclaughlin, baird & reuss
1. h. rothchild &
Members New York Stock Exchange
ONE WALL STREET
NEW
.
TELETYPE NY- 1-1310
co.
specialists in rails
YORK 5
i
TEL. HANOVER .2-1355
t
EHrler?
Kidder Adds
M.
■
Potentialities
Circular
V
new
securities
SEABOARD 4s/50
imimB
1
WHitehall
5
Sold—- Quoted
LEROY A. STRASBURGER &
was
sufficient, to fill the face amount
of the claim, no additional junior
value of the
'
—-
YORK
Registered
A Post-War
value of the claim of the 6s, 1940.
can
.
,
Bought
pledged was given weight
to the extent of the face
summation- of the
& CO.
Teletype
&
Coupon
WALL STREET
NEW
4s/88
lateral
Refunding Mortgage is less strik¬
ing.: Even; under favorable condi¬
Serial Obligations
'-i ;
PH 290 and 297
72
Gen.
request
vpon
Van Tuyl & Abbe
& Pacific
18.
by pledge of Refunding Mortgage
bonds in the; ratio of about 1.5 to 1.
Previously the amount of the col¬
of
Guaranteed and Special; Stocks
.
Jan.
change in
earlier proposals involves the Se¬
cured 6s, 1940, which are secured
From
Mortgage Bonds
,
this point have
on
only other real
at recent
'Equipment;.Trust.':Certifica1^';-uW''| ■•ai
;• -
available'
Partnership
Nu
Enamel offers interesting the
war will be over before the new
BOSTON, MASS. — Henry H.
possibilities, " according to a cir¬ plan. With this possibility, the 6s,
Newell will be admitted to part¬
still appear attractive for securities are issued. There is a
cular discussing this situation is¬ 1940
15
sued by; T. J. Feibleman & Co., purchase evefi" after the sharp ad¬ fairly widespread feeling that New nership in Estabrook & Cb.,
41
Broad
St., New York City.
By and large, the present pro*, Copies of this ' circular may k be
(Continued on page 2658)
'( had from the firm upon request.
,
set for
The
-
•
Hearings
of only
Cotter,
$52,038,036
.
——
—
RAILWAY COMPANY
Rock Island
cash.
.
Total Claims
in respect to
SEABOARD AIR LINE
Chicago,
fessions and Special Services sec¬
tion of the Commerce and Indus¬
mon and preferred stockS;
RECENT DEVELOPMENTS
REORGANIZATION
Old Colony bonds.- As 0 matter of
fact, it seems likely that the bank
|^e
satisfied as the following table
|shoWs'J.No provision is made for
Copies of circular describing
of!
Assist War Bond Drive
ICC
proposal is that no less than $670,*299,024 of: allowable claims will
dhe
loans and holders
bank
cured
Professional Group To
.
Toronto
Railroad Securities
The New St. Paul Plan
The Interstate Commerce
1-395
Montreal
'
'
120 Broadway
COrtlandt 7-0136
it. y. o. 5
Tele,,^ 1-1293
Adams & Peck
63 Wall Street,
BOwling Green 9-8120
BoftGo
New York 5
Tele. NY 1-724
Philadelphia
Hartford
f
THE COMMERCIAL &
2634
Thursday, December 30,1943
FINANCIAL CHRONICLE
F. L. Lucke Elected
Delaware Power &
STOCKS
PUBLIC UTILITY COMMON
V.-P. Of J. A. Ritchie
Light
F. L.. Lucke has - been elected
vice president of J. A. Ritchie
Co., Inc., 70 Pine Street, New
York City, bank consultants, ef¬
;
Common
Company
Black Hills Power and Light
Idaho Power Company
a
(When distributed)
Iowa Public Service Company
fective
Jacksonville Gas Corporation
Bought
Sold
—
Quoted
—
Company
Northern Natural Gas Company
Missouri Utilities
according
by J.A.Ritchie
Paine, Webber, Jackson & Curtis
ESTABLISHED 187!)
Gas and Electric Company
Southwestern Public Service Company
Sioux City
I
..
..
president.
For
ten
was as¬
repre¬
of
sentative
Public Utility
A.CALLYN^COMPANY
Manufac¬
the
Securities
turers & Trad¬
Buffalo
of
the
perennial problem of increasing Federal taxation has re¬
turned to plague the utility industry, although due .to the lenient
treatment received a year ago, the stock market has paid little
attention to recent proposals.
Chairman Kellogg of the Edison
Electric Institute has estimated that if the proposals contained in
The
Minneapolis
Milwaukee
Mexico--Its Economic
House Bill
3687 should be applied to
And Financial Policy
year
1942, which in turn was $40,000,000 less than in 1941. - The Bill
in
-r—:
Great Britain
u
but
21% in the United States.
■
only
'
bond
An in¬
dividual net income of $2,500 be¬
;departNew
office.
York
Prior
Lucke
with
associated
Co.
and
that
-was
Tucker, Anthony
Syracuse office,
their
in
to
he
time
&
the
of
bank's
F. L.
in
municipal
ment;
the estimated results for the
1943, net income^would be $2,000,000 lower than in' taxes
calendar
Co,
Trust
ers
Utility Tax Problems
Incorporated
Boston,
Mr.
years
Lucke
Bought—Sold—Quoted
New York
;
over
.
*
sistant
Chicago
1944,
to
announcement
of Colorado
of Indiana
Public Service Company
Public Service Company
Janu¬
1,
ary
previously, with White, Weld
& Co., in their Chicago office,
i'
fore personal exemption pays 12%
proposes an increase in the excess
Financial Chronicle:
in the United States and 24% in
profits rate from 90 to 95%, while
During the last year particularly we have become more con¬
Great 'Britain.
Our corporation
the
proportion of earnings ex¬
scious of our neighbor to the south of us than ever before. Partly so
■
income tax per small shareholder
because at present it is our only way to satisfy our desire to travel; empted from the tax would also
is twice as high as in Great Brit¬
be sharply reduced.
therefore, we have learned to realize that Mexico is very beautiful
ain.
This is rank injustice to the
Dr.
Elisha M. Friedman, who
scenically and also that its people and their ancient background are
little fellow."
'
Kobbe, Gearhart & Co., Inc.,
vastly interesting. Those, however, whose interest lies in business has done important work before
Dr. Friedman also holds that the
New York, are offering in units
Congressional committees in ob¬
generally, and in banking and in*
corporation income tax should be of one share of preferred stock
be necessary to put an embargo taining
liational economy in particular,
amelioration of certain
deducted first before levying the
and two shares of common stock,
will be impressed by the steps on funds coming into the country. corporation
tax provisions, and
excess profits tax, rather than vice
at 85 per unit, 20,000 shares of $5
(b) While every one was spec¬ who is a prolific writer of letters
'taken within the last half year by
versa.
He states: "The difference
cumulative convertible preferred
the present Mexican Government, ulating about the measures to be "To the Editor," recently issued a
in the tax sequence may be seen
stock (par $5) and 40,000 shares
which appear to make the most of taken, the Banco de Mexico an¬ double blast against the Federal
in a simple case.
Take a corpora¬ of common stock
(par 10 cents),
the unusual opportunity presented nounced its intention to import tax policies in the December 21st
tion, showing earnings of $100 in Telecoin Corp. is a new corpora¬
to put its economy and its finance gold to sell freely and encouraged editorial pages of the "Times" and
pre-war years, paying a 15% in-<
tion, organized in Delaware Nov.
Dr. Friedman holds that
on
a
sound footing.
In fact, it those who wished to convert their "Sun."
Editor, Commercial &
Kobbe, Gearfaarl & Go
Offers Telecoin Stock
come tax, and having net income
into gold to do so.
It our total corporation income taxes
after
taxes
of $85.
In 1943, it
might be mentioned here that it under the new Bill will be almost
ample has been set.
shows earnings of $200.
Under
has been possible right along to the
highest in the world—ex¬
our
original sound sequence, a
<*old, Monetary and Fiscal Policy buy gold here at a rate which con¬ ceeded only by the Germans (who
formed to the U. S. gold price, do not tax excess profits), and our 40% income tax, or $80, leaves net
(a) On April 13th, the local pa¬
income of $120 and excess profits
with this difference: in the open excess
profits tax will be the high¬
pers
reported a speech by Mr.
of $35
above the pre-war $85.
market different rates were ap- est in the world.
He. holds that
Eduardo Villasenor, President of
Then a
95%
excess
profits tax
piled to Centenarios ($50.-M.N.),
the Banco de Mexico, the central
[these taxes {invifel ^inflation be¬ takfes about $33 and leaves $87 net
Aztecas ($20-M.N(). and"? Hidalgos cause
they
cfwsck
production,
banking institution, the gist of
irttome after taxes in 1943, com¬
($10.-M.N.).
:
While consumption remains aljnost
which was that due to the fact
(c) On April 18th, five days untaxed; and that they invite in¬ pared to $85 in pre-war years.
that Mexico as a member of the
What is the result, under the al¬
after
these
announcements, the efficiency, since increased manu¬
United
Nations
was
furnishing
tered, unsound sequence?
Of the
costs are largely ab¬
materials for which she was paid papers brought an interview with facturing
$200 earnings in 1943 the so-called
Lie. Vicente Lombardo Toledano, sorbed
by the U. S. Treasury.
in currency, while on the other
excess profits is $100,
of which a
President of the Confederation of
hand her bargaining position was
Commenting on a recent Treas¬ 95% tax leaves $5 and total gross
Latin American Workers, refer¬
restricted,
and
because to the
ury
memorandum, "Comparisons earnings of $105. Then a 40% in¬
ring to the recent conference of
of
taxes
in
the
United States, come tax leaves $63 net income
largest extent her sole customer
Mr. Villasenor and elaborating on
was
the U. S. A., she was pre¬
United Kingdom and Canada," Dr. after taxes in
1943, compared to
it.
It is too long to quote ver¬
vented from receiving needed ma¬
Friedman
states:
"The Treasury'
$85 in pre-war years. The excess
batim but the high points seemed
terials or imports in kind because
tries to find the ultimate burden'
profits tax is therefore not 95%
to be, the economic coordination
of
restrictions
imposed by the
per shareholder of the corporation but 122%.
Was this the intent of
of the 21 American Republics, and
V. S. A. due to her own war re¬
tax. It shows that the small Amer-'
to
seems
the writer,
that
an
ex¬
savings
.
while
Mexico
does
wish
not
to
quirements.
The result was and
enrich herself, it does not wish to
is that deposits are piling up in
be exploited; also "somos enemithe banks, causing a startling rise
gos del imperialismo Yanqui" (we
'in prices, etc., etc.
To prevent
are against Yankee imperialism).
further harm he thought it rpight
Further: that it is indispensable
economic
the
that
policy of
our
is organized with these
two objectives: to raise the pro¬
duction and to reduce (stop) the
country
NOTICE!
To Brokers and Dealers Only
misery of the people, etc.
Hard upon
cidents
A NEW BOOKLET ON
two
D.
Roosevelt
In
are
having printed a
the
study of the problem
of
disclosure
or,
profits > containing
analysis
of
recent
a
cases.
orders in NOW
current
Congress?"
was
exchange
the
on page
"
ex¬
Certainly our corporate tax pro¬
ample cited, twice as heavy a tax gram appears' in need of , a thor¬
as the British shareholder.
Fur¬
ough overhauling, and this applies
thermore, the Treasury analyzes with particular force to taxes on
the total burdqp on the share¬
utility, companies, which appear
holder of the combined corporate
entirely unreasonable as compared
tax and the individual income tax. with those levied
against other in¬
What are the results? In the high¬
dustries, and seem* to reflect:, the
est
brackets the burden in the
prejudice against; this, particular
United States and Great Britain
industry which has characterized
is almost the same, about 95%.
the
present * Administration
in
But in the lowest taxable bracket
Washington,
the American stockholder pays a
total effective rate of 55%, com¬
pared
to
36%
stockholder.
"In
the
.
.
for
.
fiscal year
the
British
the
same
come
tax
Post-War
*
;y
An
1942-43 the
corporation income tax plus the
profits tax raised 12% of
the total taxes in Great Britain
and 33% in the United States.
In
the individual in¬
raised 35% of the total
post-war
State
this
Raymond
may
&
Pitls-
certain
of
the
be
Morris Cohon
New York 4
man
&
41
Co.,
City.
Broad
Copies of this inter¬
on
request
4-0869
Teletype
NY
1-2187
dealers
request
Co.
only,
from
may
be had
upon
T. J. Feibleman &
tenants
who
in
operate the' ma¬
by means of a coin device
which the users insert a coin
r
whereby the length of time a ma¬
chine
operated is auto¬
be
may
matically controlled.
Due to the demand
for
these
real
placement in
apartment houses, the corporation
expects, when manufacture of ad¬
ditional machines is permitted, to
be able to place a large number
machines from landlords and
agents; for
estate
of additional machines.
in
The pres¬
is being undertaken
ent financing
anticipation of this demand.
"St. Paul" Securities
Found Interesting
at
Hutton &
F.
E.
N. Y.,
York 6,
New
Broadway,
has
Stock
York
office
Stern, member
Exchange, with
Co., 61
M.
Frederick
New
memorandum on "St. Paul"
a
which
discusses
estimated
curities,
well
the new amend¬
of reorgan-;
table with
prices for the new se¬
shows
percentages of
as
modifications if the RFC
off in cash. Copies of the
report "may be obtained from Mr.
Stern upon request.
is paid
Now
Hopkins, Harbach Co.
LOS ANGELES,
is
Bear, Stearns
NEW YORK
are
chines
name
&
Co.
a
CALIF.
The
Spilth Grand Ave¬
effective January
in the firm, which
Partners
mepiber of the Los Angeles
Stock
Exchange,
Hopkins,
D.
are
Jr., Edwin
White
is
in
Department:
,
charge
■
Roger
L. Harbach
and J. J. Dagny Farrar.
CHICAGO
—
of Hopkins, Hughey &
will be changed to'Hopkins,
1st.
Members New York Stock Exchange
Telephone
of
Harbach & Co.,
Analysis
St., New
esting study, which is available to
in
placed
apartment houses for the use
nue,
appreciation, according to
lo¬
Metropolitan New
machines
The
York.
Company,- 609
(When Delivered)
study prepared by T. J. Feible-
York
home laundries,
Bendix
cated chiefly in
firm
Common Stock
bonds, offers attractive possibili¬
a
WHitehall
obtained
request from Raymond & Co.
Delaware power & Light company
underlying
coin-oper^
of 450
operation
a ted
Co.,
2646)
situation in
and
possible appreciation for the out¬
148 standing bonds in terms of their
St., Boston, Mass. Copies of allocations
under
the plan,
as
by
discussion
upon
porated business conducted under
the name of Telecoin Co.
This
business consists of the ownership
ization. An interesting
ap¬
praisal of the St. Louis-San Fran¬
cisco railroad bonds has been pre¬
pared
erty and business of the unincor¬
ments to the ICC plan
Appraisal
interesting
year
burgh Railways System, particu¬
ties for
Broadway
air
Pittsburgh Rys. Look Good
larly
Price $1.00
42
in
the
excess
reports and speculation
change
stockholder pays, in
an
The
Send your
Commission, whose re¬
(Continued
markets
of
S.-Mexican
meantime,' the
with
to
as
new
U.
ap¬
port was as expected.
full
We
Ca-
M.
subsequent
the
of
pointment
Avila
and
with the
Economic
Customer Problem
Messrs. Franklin
Presidents,
macho,
The Broker-Dealer
the foot of these in¬
the meeting of the
came
ican
take over the prop¬
1943, to
20,
John M.
of the Sales
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4242
158
2635
SPECIALISTS
WE BUY
ARE
WE
TO
ANNOUNCE
l.
PLEASED
THAT
lucre
m
AND SELL
Real Estate Securities
f.
mr.
FIRST
Since
1929
MORTGAGE
BEEN
HAS
VICE-PRESIDENT
ELECTED
OUR
OF
CERTIFICATES
FIRM
Seligman, Lubetkin & Co.
ISSUED BY
.
Incorporated
Members
Title Guarantee & Trust Co.
J. A. RITCHIE CO., INC.
TEL.
N. Y. Title &
1944
1,
Broad Street, New York 4
41
HAnover 2-2100
Lawyers Title & Guaranty Co.
WHITEHALL 4-2773
'
JANUARY
«
Security Dealers Association
Lawyers Mortgage Co.
NEW YORK 5, N, Y.
STREET
PINE
70
York
New
Real Estate Securities
Mortgage Co.
and other Title
Companies
Offerings
on
sent
Specific Issues Mentioned In This Column During 1943
Have Given High Yields And Excellent
Appreciation In Values
request
Announcing the formation of
This
column, established as one of the features of this publication
in
September, 1942, to acquaint dealers and the investing public with
possibilities offered by well selected real estate securities,
has attempted to show various factors as they became apparent and
the unusual
LANICE & CO.
the possible
32 BROADWAY
new york 5,
no pine st.
New York
n. y.
1943 based
Telephone: Dlgby 4-6886
Phone
the contents of the column were
on
Continued
Show
"Markets
Teletype NY 1-1790
Dlgby 4-7900
effect these factors and improved conditions would have
Some of the headlines for
the market value of these securities.
upon
4, N. Y.
trend."
as
Municipal Bond Comm.
Appointed By NSTA
to
successors
ROBERT C. MAYER 6- CO.,
which has this day been
Inc.
Thomas Graham Chairman;
dissolved
Kingsbury, Vice-Chairman
January 1, 1944
on
Bonds
"Post-War
Judge Dismisses Claim Suil Under
Wage-Hour Law by Building Service Employees
employees engaged in
decision
handed
Se¬
Market
the
New
une".of Dec.
interstate
Bear
Bonds
Court, it was noted«>
"Herald Trib¬ ees
York
29, which further re-
C;" h-C-
ported;.
subject
same
Security
-
their
Judge Rifkind said.
Both
absolving the employer from
decisions
of
extreme
Appellate" Division ruled that such
for
employees may;', file a
penalty damages, even
if they have signed a formal re¬
building
the
now
a
Thomas Graham
W.
J.
.
New >
higher courts.
Judge Rifkind characterized the
on
the part of the em¬
*
genuine dis¬ the
pute and having settled it, the
plaintiffs
repudiate the
settle¬ appointment of Edward
ment, but tenaciously hold on to Pierce as Chairman of the
i
cial District
If they win
Y.
the
intention
wide
a
Pierce
suit
Rifkind
was
Schulte, Inc.,
loft
f
are
Finan¬
of
of the statute
the
Association
Moffatt, Pres¬
of
Stock
Ex¬
change Firms and Herbert Alien,
Allen & Co., Governor of the New
York
Security Dealers Associa¬
tion.
Assisting in the work- will
be Peter P. McDermott, Peter P.
McDermott & Co.; Sam J. Smith,
dismissed
by Judge
brought against D. A.
.
of a 23-story
building at 575 Eighth Ave.,
owners
by. employees of the building. The J.- S. Bache & Co.; Robert H.
employees .sued; for.unpaid over-: White,' Asiel &
Co.; Leonard< 'C:
time and received, the sums due
GreeneArthur "F/ Bonham; Carl
them on Sept.:24;; 1942, after 'sign-,
F. Cushing, W. E; Burnet;& Co,}
frig waivers, relieving the ^corpor a-:
tion
liability in connection
liquidated damage provi¬
of all
,
With the
sions >of the act.'
f; 'J-.
Milton
corporation, in
...
to the
overtime
response
demands- for '
compensation had; denied liability
original
;
Heineman;
Frank"
Charles
Wallin;
Reid
White, and Alfred J. McDermott;
the. act but stated that, in- Peter P. McDermott & Co.
•
order to avoid litigation, it' was
>' i This year the worst epidemics
prepared to pay overtime compensation but not an equal amount in of infantile paralysis : in-12 years
,
under
liquidated ^damages. The employ-
;
ha ve plagued the nation.
.
>-
3(
345
1(
5%s
Y.
355
Title, series F-l.
N.
Y.
Title,
65
510
1]
I
series
535
IS
_
390
400
St., 3s 1950-^..1(
310
Hotel
Taft, 5s 1947
80
140
3-5s :l953-_-...„_
Fifth Ave., 5s
Park. Ave., 4-5s 1946
475
Herald
Square Bldg.,
Seventh Ave.,
870
^'Dollar
mate
,
no
s^fcurities
80
710
470
1948
in
1943.
51,000
per
doubt, in
chosen
merit
.600
220
3-5s
market/
There is
475
80
4Vis
ion, that well
460
95
:
appreciation
present
920
tApproxior
unit.
opin¬
our
real
estate
consideration
in
view of better general real estate
conditions and that the above is¬
(as
sues
well
in the table
others)
levels
the
at
shown
as
at¬
may appear very
investigation
specialists in the field
supply full information.
upon
thrdugh
who
as
market
present
can
of the
points
MARKETS
TRADING
V
IN
issues
-
a
SECURITIES
tabulation of
of the issues mentioned dur¬
some
It is shown below
ing the year.
est
Dept. Of Huff, Geyer
Huff, Geyer & Hecht, 67 Wall
b:.ceet, New York City, announce
that John Butler has become asso¬
with
ciated
firm
the
their expanded bank
head
as
of
stock depart¬
Mr. Butler has been in this
ment.
phase' of the
brokerage business
for.. 18
years, having been with
G. M.-P. Murphy & Co. for seven
in charge of its bank stock
years
department
with
and
Frederick
H.
more
recently
& Cb'.,
Hatch
we
SHASKAN & CO.
believe it is interesting to
the
very
Members New York Stock Exchange
Members New York Curb Exchange
sizable dollar ap¬
is¬
have enjoyed in
40 EXCHANGE PL., N .Y.
■>
1943. Inter¬
Bell
Dlgby 4-4950
Teletype NY 1-953
payments have also been made
*.
recent
coal
would
Steel Strike Ends
go
170,000 steel work¬
midnight Dec. 24,
returned to their jobs on Dec. 28
with some of their leaders claim¬
from
ing victory in the first round in
the battle of the CIO Steelwork -
wage
Mest of the
ers
ers
since
idle
17 cents an
fixed
by
boost of
hour above the ceiling
for
Union
the
a
wage
"Little Steel"
for¬
according to Associated
Pres^ dispatches from Pittsburgh,
mula,
f
Interesting Rail Situations
;
B. W. Pizzini & Co., 55 Broad¬
way,
Pa.rwhich further added:
"Reports from the nine
where
scores
States
of mills were closed
showed more than 125,000 had re¬
turned
by
expected
nightfall, with others
back when operating
conditions permitted.
"The 'Big
Steel' contract is ex¬
page
pected, to be the master plan for
others to be made with 500 con¬
cerns.
Neither side would give
West
an
writing on Pittsburgh &
Virginia and map showing
connections; and a 10-page analy¬
sis
of
the
Boston
&
Maine
Rail¬
road;'Copies of these may be had
from B. W. Pizzini & Co.
estimate
of
just
when 4 this
agreement would be ready for the
War Labor Board's
/
c+olAmnfA
approval
Hpvialnnprl
ss
or,
in
if
t.tlf*
controversy, when it
before the Board for a
directive."
Associated
Press
dispatches
Washington, D. C., stated:
"The War Labor Board
on
Dec.
voted 8 to 4 to guarantee
27
that
increases
which
might
be
negotiated in coming months be-,
the
tween
500 steel
active
CIO
steelworkerS
and
companies will be retro¬
to
the
expiration
date
of
the old contracts.
"In
■
New York City, have avail¬
able on request a basic five-page
Rankin; James Currie, Troster,"
financial analysis and leased-line
Currie
& Summers;,-Wellington
map
of
the Delaware, Lacka¬
Hunter,
Hunter
&
Co.;
John wanna & Western; a recent two-
Leichhei"
Judge Rifkind pointed out;,that
the
J.
John Butler Heads
535
REAL ESTATE
We have made
—.
'
1]
1950
infor¬
preciation securities of these
——mt—
:
410
issues
specific
by
example.
an
as
905
It
2s 1952
in
ident of the New York Curb Ex¬
breach between
;—
committee.
that
order
illustrated
be
Corp.,
4s
730
21
<1
N.
brought out in the articles could
sues
Committee to aid
Fred C.
the
in
and
facts
note
,
Allen
coming
appeal
for
funds.
Serving as co-chairmen with Mr.
law and morals." *
The
would have the benefit
ers
and
en
detailed
units
given in order that read¬
mation
Raymond
Bank,; Memphis; and F.
different
many
mentioned,
were
Co., Chicago; Joe H. Davis, First
change; John L. Clark, President
to drive so
was
articles
430
Title, series. C-2^„
Title, series BK
tractive
under
the above headlines and in special
Thomas Kemp, Thomas. Kemp and
not entitled. I do not believe that
it is
chairman.
.National
the
If
damages.
New
vice
y:" Condon,. B. J. Van Ingen and
the liquidated
they
lose,
they,
nevertheless, retain the overtime
compensation to which they are
collect
will
they
Orleans,
and; Alvis,
"The parties had a
the benefits received.
today. , J.
Kingsbury
•
.named
.
/
New
City, Rental Rates Be-
In the text of the articles
Co., Los Angeles, are the others
a
,,
|
Gommiiiee Appointed
For Paralysis Fund
ployees" in the case before him as
"heads you lose, tails I win"
Association
and
announced
-Kingsbury,
president,
Financial District
action
proposition, and said:
Orleans,
v
Wallace
waiving all future claims.
lease
...;'v
Increased."
Kingsbury
it.Thomas Graham of the Bank¬
matter
for
claim
of
Number
Sales.";..;
.
York
.
decision will hold is
and
Volume
"Demand for Office Space in
•
;
are
/
union*
own
Es¬
York, Inc„
Increase in Dol¬
ShovO- Large
lar
paying liquidated damages after importance to real estate owners ers "Bond Co. of Louisville has
receiving' overtime compensation in the city ; and involve about
been darned chairman of the 1944
may not institute .suit for further $25,000,000 in outstanding claims
municipal bond committee of the
filed
by
building service/' em¬
penalty payments.
/
National .Security Traders Asso¬
ployees for overtime wages/ and
j In ~ a
3-to-2 decision handed
ciation, William Perry Brown,
down ongDec, 23, Justices of the penalties under the
Newman,--;. Brown
&
Company,
.
.
Y,
N.
2
Real
by
tate Board of New
*
and
Compiled
"Figures
accepted
partment
Judge Rifkind ruled that; such
employees who have .signed waiv¬
„
Sherneth
tate."
the
that /proposal; after
consulting
with the - wage z and
hour division of the Labor; De¬
1
ers
on
one
370
1953
5s
George,
Hotel Drake,
Estate
acting to Benefit of Real Es¬
commerce.
wide variance with
St,
60 East
Specialists Important."
recently by Justices of the ;Appellate Division of the
down
State Supreme
in
is at
40th,
t
2(
19521(
1956—
3-5s
Lexington,
Hotel
*
•
Terrace,
East
10
and Economic Conditions Re¬
The
District
Hotel
"Changes Brought About By War
service
States
York
Court,, in
H.
Simon
of United
Real
Hotel
N.
Show
of
Issue—
Governor Clinton Hotel,
New
of
Future
City Hotels."
"An Inflation Hedge,
"Advice
In-
New York, dismissed on Dec. 28 a suit for .liquidated damages brought
under the Fair Labor Standards Act of 1938 by a group of building
Judge
Rifkind,
Attractive
Possibilities."
vestment
as
Savoy Plaza, 3-6s
Liquidation Cer¬
Offer
tificates
Strength."
"Office
Building
Watching."
Federal
Below
issue, yields ranging as
15% on invested capital.
every
high
London
"First Mortgage
curities
/.
Far
Selling
Intrinsic Values."
True
;
Indicate
Valuations
"Assessed
follows:
as
Up-^-
Pittsburgh,
Philip Murray,
President of the ClO-United Steel
Workers
he
has
with
a
asking
the
in
of
America,
asked
'full
announced
compliance*
War Labor Board directive
uninterrupted
nation's steel
production
mills until
negotiations for a new contract
peacefully and finally re¬
are
solved.
#
"The Board's action
was
a
re¬
versal of the stand labor members
took
on
Dec. 22 when they voted
against an almost identical pro¬
posal made by the public mem¬
.
bers."
il*i
rW
(i
mi
wiui'WiV
r,
M-iit*.
War Bond Committee
caption, which
with his address bearing the above
In connection
NSTA Announces 1944
Tomorrow's Markets
And Investment Policy
Inflation Prospects
Thursday, December 30, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
2636
Walter Whyte
reprinted in full in our columns on Dec. 2, Benjamin Graham,
President of Graham-Newman Corp. of New York City, and author
was
Analysis," writes as follows;
Editor, Commercial & Financial^
William Perry Brown,
Brown & Company,
of "Security
Automobile
tection
Chronicle:
against
of the
loss
pur¬
Says—
Accessories
Industry
to reprint
of you
kind
was
chasing power of money." I had
no
intention of suggesting .that
"Policy Advocated tection, but primarily because if
of Bank Stocks soundly bought they are good in¬
vestments at any time. For pur¬
and Public Utility and Railroad
poses other than protection against
Shares."
The text of my address made it inflation, there would be no rea¬
reading
title
Dividend Paying
10
of
of Companies
Common Stocks
Industry.
this
Representing
clear that such
exclusion referred
"seeking pro¬
only to g program
stocks,
to exclude bank
son
is just a few days off,
Wall Street is again indulging
favorite
pastime — pre¬
public its
BY AN
Ward, Graver & Co.
Plaice, New York
Exchange
40
East 86th
131
*
.;
'•
j
r
»t\
StV, 'New York
i
't
Copies of
for
40
Strings in Each
.
Binder
Accomodates 40 Sections
profits as these
remain in business
with the present cost of labor and
materials.
This 5% limit is re¬
limited to such
,s
it cannot long
$2.50 Plus Postage
Price
ferred to only in the case of
"EXPANDIT" BINDER
25 SPRUCE
STREET
(7), N. Y.
Frank Ginberg To
Be
32 Broadway, New
City, members of the New
York Security Dealers
Associa¬
with
in New York
offices
Chicago, announce that Frank
Ginberg will be admitted as a
and
general partner in the firm as of
Jan. 1, 1944.
For the past eight
years Mr. Ginberg has been head
of
the
Statistical Advisory and
of the firm
inaugurated the Strauss Bul¬
ment time arrived
the
He
country.
seen
Jr.,
F.
Co.,
Boston, Chair¬
man;
Don E.
D. E.
& Co.,
Arries,
Arries
John
Tampa;
L. \ Canavan
R
a
u s c
h
e r
j
Piqrce & Co.,
Dallas; Harry,
L. Coleman, H.
O. Peet & Co.,
John
Sullivan
Kansas City;
*-
through-the eyes of the
astrology, some with numer¬ F. D, R. and warns that com¬
afford to ology and others with some
placency is unwarranted. In¬
operate on a small percentage of other kind of mumbo-jumbo.
dustry is meanwhile busy
profit and whose accounts may I don't know if
you can still with
post-war plans, taking
number,« in
some
cases,
many
get one of these annual fore¬ steps to reconvert into peace¬
thousands.
casts today; if you can't and
time channels.
So there you
insist on a private peek into
have a
through the
small dealer but only
firms,
large
who
can
.
Eastman, Dillon Will
future, I suggest one of colors.
these
Buck
Rogers
comic
the
Admit Barton A Power
picture full of clashing
All you have to do is
The client 1
the money was
NOT there but the client
had fled to parts unknown.
The
stock was going up and the client
Exchange.
has 'repre¬
ization committees.
of their Trading Department
years,
started on his
business career by entering the
ager
for
many
a
this man
and the firm
heavy loss.
There
the firm was looking for
become manager of
the stock fell rapidly
Department, in 1933.
had
take
to
a
position taken by the firm
stock, it was a "riskless"
transaction with the word "risk"
omitted.
Therefore there is no
no
was
the
in
such thing as a
Exchange
Barton, who has been man¬
Mr.
will
come
for,.^%izeabje
in
'
%
%
Si!
The market isn't an
isolated
play. Already our, arm-chair
generals and dry-land admi¬ medium composed of pastel
rals are working on [ grand shades.
It is a mirror of the
3,000 shares
few points employ of Eastman, Dillon & Co.,
These ex-officio past and a reflection of the
profit by simply having the firm in their Philadelphia office and strategy.
It reflects not only
give him a profit check.
While moved to the New York office to members of the General Staff future.
thought he could buy
at the market and get
sented the firm on many reorgan¬
S. F. Stock
not
not only
letin, "Geared to the News," which
is distributed to dealers through¬
out
John E. Sul¬
livan,
Putnam &
give it a title.
books. At least, when you're
#
❖
*
v
Eastman, Dillon & Co., 15 Broad
order ( street, New York City, members through with it, the kids will
My business is not to pose
refuse of the New York Stock Exchange
as an art critic except where
enjoy it.
, ■.
;
;
*
*
*
to pay for the securities.
A good and other Exchanges, announce
it has a bearing on the stock
example of this happened to the that they propose to admit D.
This year's prognostications
market. Yet the two are so
writer once.
One of his salesmen Frederick Barton
and John F.
will be different. For in ad¬
took an order from one of his Power
as
general partners on
closely intertwined it's almost
clients to buy 3,000 shares of an January
1, 1944, subject to the dition to the coming state of
impossible to divorce one
active listed stock.
When pay¬ approval of the New York Stock business and
markets the war from the other.
Research Department
and
in¬
It
1944.
cludes:,
might die right mfter the
is
completed or he might
York
tion,
but
3U.C^} ,a transaction.
Strauss Partner
Strauss Bros.,
"risk-
just what
are
"riskless
transactions"?
Of
course it is meant that the dealer
takes no risk when he simply goes I
out and buys and then immedi-j
ately sells to his client. It cannot j
be said that there is no risk in |
transactions"
less
NEW YORK
rid
necessary and
the fact that i the security is
*
especially
o
Committee for
should be the ceiling no con-
.5%
Chronicle
the
But let the
B
W ar
may
sideration is taken of
practical stiff back string
binder designed
old-hat.
of. the
;
Association's
the cost of Selling 10
market
forecasts
and
opinion that the war will be
high, although no
you'll read 10 different opin¬ over in 1944, as soon as the
most, if not all, over-the-counter j position is taken, it is only reason¬
able
that a fair and equitable ions.
dealers
would only be getting
Second
Front is launched.
*
2V2% of this amount and.some¬ profit be made and in such cases,
The same prediction has been
where all printing of circulars,
Some years back so-called
times less as most all salesmen
made by General Dwight D.
work on a 50-50 basis. Out of this telephone calls and other over¬ market bureaus
would, for a
head expenses are paid for by the
Eisenhower, who will direct
2 Vz %
and less the firm would
lave
to take its
overhead and firm certainly a profit to the firm price, map out the trend for the impending Allied assault
of only 2%% is not enough.
It is the full year. Some of these
thereby
net,
probably
nearer
against Hitler's European
1 xk % or possibly 1 %.
If a firm evident that the entire problem is forecasts were tied up with
fortress.
Then along comes
THE CHRONICLE
A
not.
ment:
,
A BINDER
For Your
are
are
Semi-annual fore¬
appoint¬
the
be debated in many different ways but it end of the year roll around Cecil W. Weathers, City Securi¬
boils down to one ''fact and that is that the security business is vastly
Corporation,
Indianapolis;
then everybody goes to town. ties
different than almost any other kind of business in the entire busi¬
George H. Williams, Kennedy &
Pontifical utterances attrib¬
ness world.
The business of selling securities can be limited as to
Co., Philadelphia; M. Ames Saun¬
profit only on an ethical and reasonable basis.
The Medical and uted to leaders in every field ders, M. A. Saunders & Co., Mem¬
Legal professions are not limited as to the profits they make, yet start pouring in. The fact that phis; Benjamin H. Van Rde/an,4.
both
of
these
professions are^
most are nothing but plati¬ Frank C.,Masterson & Co.,' New
similiar to the security business should be no ceiling oh profits,
York; Richard W. Simmons, Lee'
tudes which either gaze with
inasmuch as they are in the busi- ; The NASD should have enough
Higginson Corporation, Chicago;
or
view
with and Norman V. Cole, Ledogaroess of advising clients.
The re- confidence in their members and satisfaction
control over them to prevent un:ent statement made by the Naalarm doesn't prevent their Horner Co., Cleveland.
tional
Association of Securities reasonable and unethical profits to
appearing on schedule.
Dealers limiting dealers to a 5% be made. There are certain trans♦
*
*
To make everything even,
profit is not only unreasonable, I actions, of course, where large
Market prophets find this the
n this writer's opinion, but really! profits are unwarranted.
Vice-President,
Henry
In cases
ridiculously foolish. In saying thatj where much
research work is period a field day. Pick up Wallace, comes out with his
Y. Curb Exchange
Members N.
casts
Year.
usually reticent.
forecasts
Quarterly
uncommon.
SECURITIES
ANONYMOUS DEALER IN
question
This
Stock Exchange
Members New York
Associate
the
holds for the
Security Transactions
New
something weird
lure a calendar
is
about
Ceiling Profit On
the
for
dictions
utility and railroad shares.
The Unfairness Of A
Request
on
of the
end
year
There
Mailed
the
that
Now.
Calls for Exclusion
of
influx
Usual
Newman,
New Orleans,
the National Secur¬
of
ity Traders Association, announces
year-end
forecasts about due. Market
my
address on "Inflation Pros¬
pects and Investment Policy" in bank, rail or utility shares be action indicates reaction in
avoided in general. This is par¬
your December 2nd issue. How¬
ticularly true since I advocated offing.
Airplane stocks im¬
ever, I have been asked some em¬
the purchase of common stocks
barrassing questions as a result of
prove action.
only secondarily as inflation pro¬
your editorial headline under the
By WALTER WHYTE
It
List
President
"riskless" transac¬
He
was
one
their Trading
have the
campaign all worked
out.
sk
the
of
and
York
active
and
improved
a
was
director
among
the adoption of
those who caused
many
as
member
is
Association
Security Traders
New
practices in
the
the
the
of the founders of
opinion of one group but
mass opinion of all the1
read how a sources
"high
Administration offi¬ world.
cial" said that \ye can i°°k change
informed
of
knowledge
#
Last week you
all
ffom
But
so
just
over
as
the
these
does the market
Under normal condi¬
500,000 American casu¬ veer.
securities in the account to take among the members of the Secur¬ alty list.
In case you don't tions these changes are
Nominates For Office
care of the transaction.
It may be ity Traders Association of New know
it, this official was the slow. But these are not nor¬
SAN
FRANCISCO,
CALIF.—- recalled that in the 1929 panic York there existed a Uniform
Assistant President, James F. mal conditions.
Wars make
there were many "riskless" transF
Frank M.
risK
has
Dwyer of Dwyer & Parnominated for the
been
presidency of the San Francisco
Stock Exchange. Mr. Dwyer is at
present ' Vice
Exchange.
-
Other nominees are:
gio,
Greenwood,
tie
of
President
.
is
there
unless
tion
money
or
&
Co.,1
In fact
for
a
Practice Code before the N. A. S.
in a grandiose usually slow chapggsmove at
D ^was organized and applied & Byrnes, who
transactionsiar^
uniform practice code to a much moment at a pre-Christmas breath-taking speed: The cold,
Dadly named and should bernamed; wftjer field
luncheon gave that figure as
actions but how many were: With*»
risk?
sut
.
,
,,
.
Such
,
Immediate Transactions" or
gome'1
I ;ther name perhaps more appro¬
John Rag-! priate.
There are some firms that can
Raggio
market.
over-the-counter
operate on a 5%
basis but these
*-• Mr. Power joined the Eastman,
Dillon & Co., organization in their
Rockefeller
Center
office as a
customers'
man
in
1936
and
be¬
calculating
his estimate.
of the Retail Sales
statement that
73% of the
Department' in November 1940. Second Front invasion force
five-and-ten-cent The early years of his business
would
be
Americans.
The
Walston,
Hoffman &
Goodwin, • stores can operate on a small per¬ activity were spent in writing and
members of the Board of Gover¬ centage basis also, but if these reporting on financial matters and Senator is on the Military Af¬
firms did not have the millions of in analytical and statistical work.
fairs Committee and maybe
nors, to serve two years.
customers they sell they could not
j
been identified with thre
The election will be held Janu¬
knows
what
he's
Vice-President;
Arthur
R.
Mejia,
firms
Witter &
ary
12th.
mount to
Nomination
is
election.
tanta¬
■
do
so
In
,
manager
must have many client ac¬
G. W. Miller, Dean
counts.
Co., and V. C. Walston, !
Davies & Co.;
came
The
without loss.
this
writer's
War Bond
mind
.
there 1
manager.
drives
as
a
•rqarket4' student
Colorado's
Senator John¬ interprets these changes and
To sit by
son
then came out with a acts accordingly.
talking
team sales
about.
and
placidly view events in
the
fond
belief
will work out
that
things
in the end is
flirting with financial disas¬
ter.
The market isn't a static
(Continued on page 2655)
Volume
158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4242
2637
ADVERTISEMENT
"Our Reporter On
Reader Comments On Price
Governments"
Renegotiation
Editor, Commercial & Financial Chronicle:
On the subject of Renegotiation, Judge Patterson, the UnderSecretary of War and the foremost advocate of the present law, gives
NOTE—From time to time, in this space,
there will appear en article which we hope
,
By S. F. PORTER
days, when the Government bond market was a
normal affair and the financial world worked itself into a happy ex¬
Back in the old
citement
quarter-billion dollar issue every three or six
over a
months,
an
illustration of.what the amendment would mean,
to
renegotiate
If you
which
contracts only after taxes have been
war
"normal" of the price list to move up a
was
.
read the
.
.
.
,
.
contractors,
price of $100, giving bim
profit
profit
after taxes of $6, the same as that
received by contractor A."
If
we
have
a
proper
under¬
standing of the Price Renegotia¬
,
.
,
Chances
situation
the
are
will
into January and
continue
the fourth war loan "blitz
And then, unless the majority opinion turns
Into the period immediately preceding
for billions."
out
badly
EASIER
,
.
.
wrong,
MONEY
.
the uptrend will be resumed.
■'
.
The major factor behind
the money
.
.
.
And when you ana¬
.
.
.
.
.
Government deposits,
against which they are not required to maintain reserves. ... The
explanation, of course, is that the Government will be getting in
money, placing it in banks at a faster rate than day-to-day with¬
At
the
drawals.
gaining
be
...
one
part of the
pattern—an
easier money situation
Simply because of the drive. . . .
Also, money will start returning to the banks as soon as the holi¬
day rush ends. . . . That's a trend with which you are completely
familiar and although in recent years, money in circulation never
dropped after a holiday as much as it increased before a holiday,
it still declines sufficiently to make some impression on the money
trust
not
by the Federal Reserve Banks. . . . In fact, you may look for some
liquidation, if the market shows any real signs of strength.
But it is inconceivable that the Reserve Banks will sell on a
,
scale to depress the price level at exactly the time
when they want to have it appear attractive.
.
And. therefore, the basic factor in the market in January, outside
'of the drive itself, should be a more healthy money market situation
than we've seen in many months.
large enough
...
/
•
"
/
' j' '
this time, it must be obvious to all except the small'country
BANKS BUYING?
By
.
banks that the drive in January and February
is of virtually no use
banking institutions. ... To a bank with a minor
amount of deposits,- purchases of up to $200,000 of the 214s or 2%s
may appear sufficient.
.
But to commercial banks with $5,000,000 to $10,000,000 and more deposits, the restriction on subscribing
is almost equivalent to 100% limitation. . . , Which means that:
commercial
to
his
reasoning.
Before
contractor has the
taxes
amount
contractor
to
A
(equivalent
$70
cost
Govern,
To
the
The commercial banks will be in the
February for outstanding securities.
it's possible
And
mands.
.
.
market in January and
...
that the price rally may come before its
institutions will be anticipating their de¬
.
'
specific securities, there seems no doubt of the relative
attractiveness of the 2s of 1953/51.
.
Selling close vto par, ma¬
As
for
.
.
In addition to the
because
15%
know. . . .
A' good switch would be out of the 2V4S of 6/15/56/54 and into'
these 2%'s of 3/15/60/55.
.
On the basis of call dates—which is
the only proper way to evaluate the 27/8s and the 2V4S at their present
price levels—the 2%s are only nine months longer than the 2V4s. .
The 1955 maturity puts it almost within the 10-year range for
you
.
.
banks.
a
before
reduce
The
2V4S.
yield
the 27/8s is 1.45%, compared with 1.30%
on
the
on
due to the fact
2%s
are
that the 2%s currently are 1 point and 10/32 be¬
their 1943 high, while the 2%s are only
1943 peak.
and
taxes
an-equal, amount
to be left to
$76
.
$76
$72
contractor
one
lower net profit
a
position.
The
obvious that if contractor A
to be
him
a
Judge
has
should
testified
that
that
he
is
not
shows
22/32 below their
\
...
Both bonds are exempt
and therefore, there is no difference in
attractiveness on this score. ...
As of today, this observer believes the 2%s have a better ap¬
peal than the 2%s of 1965/60—always a favorite bond of experts. -./. i
For one thing, the 2%s are outside of the purchase limit of most
banks, following the 10-year
maturity restriction.
.
.
.
r:'
*
another, the 23/4S have some competition from other* longterm exempts, while the 27/8s are in a class by themselves.
.
V •; The
23/4s of 1959/56, for example, are going to be in competition with the
new 21-4 % bonds.
To sum up, if your institution is considering investing in the
For
....
market in January, an excellent choice would be either the 2s
taxable and selling close to par, or the 2%s, tax-exempt
selling at an 11-point premium. . . .
open
of 1953/51,
Judge
does
admit
Government
who
it is
nc
expert
employ
his
for
ex¬
illustra¬
them.
The
that taxes
savings
on
arc
cost
were
INSIDE THE MARKET
quotations are exceedingly close these days.
...
Quotes
64ths, instead of the customary 32nds. . . . The 2s,
instance, have been fluctuating between 5/32 plus and 6/32
being printed in
to cite one
in
making bread,
Meter Co.
public schools and health services
Philippine
Busy little fellows these microscopic
They're
they've got
far, Mr. Ickes' report in¬
plans
post-war
for
the
islands have been necessarily lim¬
ited to taking stock of, needs to
Economic and financial rehabil¬
itation of the
Philippines is being
planned now in preparation for
the day when the Japanese are
be
anticipated.
other
Pointing out" that
possessions had been af¬
fected
driven out, Secretary of the Inte¬
rior Ickes revealed on Dec. 25.
damaged,
or
empty and banks
stitutions
and
insolvent.
treasuries
war
hous¬
seen
must be
grow
with the influx of workers beyond
island's normal
the
capacity.
addition, the basis of public
expected to be
impaired that several years will
added that tuberculosis was
be required
rise
for rebuilding, while
ease
on
had been controlled.
minus ancl plus.
.
.
one
under sterile
real bids
.
a pure
.
usual
veiled
significant,
.
"Interest
.
.
remarks
i
.
.
official
from
the
sources,
forecast is
vitally
To quote:
rates
have
subscribe
successive
war
to
stable
during
the
atmosphere in the
rooms
Bell then went
new
issues
of
Government securities In
is tested for bacteria count.
fermentation and distillation, he
and does exercise control
natural processes.
.
.
.
.
a more
def¬
.
Overwhelming percentage of dealers anticipating better market
war
favorite issue.
loan drive.
...
;
!
,
over
can
these
;
«;
And, speaking of control, wiffie dis¬
cussing matters pertaining to whiskey,
these
are
excellent
days for controlling
luxury appetites. The manufac¬
whiskey stopped in October,
1942. Distillers
are
making war-alco¬
today —24 hours
a
able to
a
day—[seven
week. The whiskey
buy today was made
you are
way
back
peacetime. When these stocks of
be any more.
are gone,
there won't
But there is enough to
last—if used in moderation.
So,
you
please "control" the amount
buy, and make what
you
do buy
linger longer. And that reminds
insofar
as
me,
whiskey is concerned, th©
busy little yeast fellows
are
getting
a
vacation, but they'll b©
rarin' to go
when they get the
green
light.
The green light now says—Back
the
Attack—Buy More War Bonds!
to quote Sir
fairly said of the United States."
You can't ask for
inite statement from the Undersecretary.
during the
little
do with the actual processes of
to
....
Kingsley Wood of Britain on his
statement "we have revolutionized public opinion as to what are fair
rates for Government war borrowing" and to add "I think it can be
on
even
fermenting
You see, while man has very
wartime
loans without any sign of holding back in antici¬
pation of higher rates."
pipes (the.
sterilized after each
are
well-earned
remained
period and confidence in the continuation of this stability' has1
been and is widespread and well justified, and has caused in¬
vestors to
that they
so
culture. You wilt
operation with live steam; how
the
in
.
.
tiny microscopic cell
also be shown how all the
plumbing)
days
or offerings.
Undersecretary of the Treasury Bell's speech of December 16
did not disappoint experts awaiting a clue to markets during war
and possible post-war plans.
Bell said some definitely impor¬
tant things about financing patterns, made a clear-cut prediction 011
interest rates.
Considering the necessity for hedging and the
.
of Schenley's
conditions,
maintain
the
Indicates dullness of market and lack of any
one
how they build up their yeast require*
hol
'
visit
Vistilleries, ask them to explain to you
He
there, although venereal dis¬
precaution is taken.
If you ever
In
tax and revenue is
so
interfere with the pure
cells that the distiller
So every
ture of
problems
riders,"
kept out of the grain mash
culture yeast
our
control
day—and
a
steady job. But, these
that they won't
disease
United Press
hours
24
a
around in the air, these "free
ing, hospitalization, sanitation and
credit in¬
Washington advices of Dec. 25, re¬
porting this, further said:
,
k
he said, had
economy,
"busy
varieties of yeast that float
many
by the war, Mr. Ickes stated
.Hawaii, completely under
physical property des¬
called
often
distillery. Like the clock,
work
they
can
will have been abandoned.
dicated,
beer, cr
or
pet culture which he guards jealously.
W.
Pittsburgh, Pa., Dec. 20, 1943.
Thus
troyed
special
wine. And each distiller has his own
uses.
MEYERS, Jr.,
Controller, Pittsburgh Equitable
Post-War Rehabilitation
-
varie¬
whiskey. It differs from the type
ments from
ernment's
are many
ana
deny it?
can
E.
.
Price
of
experience
able to
need
had
tax
a
certainly
and
tion
he
industrial
be
given a price of $80, leaving
profit of approximately $10
Plan For
single cell with the
of them actually serving
many
used
Judge'!
not
perts
were
each contractor,
a
In the distilling industry, a
He should
profit after
.
and
and there
aged whiskies
1943
much greater than in the 214s,
have any ideas of a rise in Governments to the
highs, the chances in the
low
see
naked eye,
useful purposes.
....
If you
Yeast is really a microscopic plant.
You can't
10
pays higher taxes tc
Government is an absolutely
and
their
to be based upon
any¬
pantry
your
on
preservej
or
10
he
previous
price on further
deliveries to
approximately $80
per rifle.
On the other hand, the
Judge
says,
"If
Renegotiation
were
are
shelf, if you don't watch out.
He
to
an
ties,
have the
final word in Price Renegotiation
taxes of approxi¬
mately $10 and would be required
so
..
.
jelly
contractor B
taxes
allowed
fellows
to work to change
go
into alcohol
bees" in the
be
us.
uncovered glass of
the
would
on
convertible sugar
represents a reasonable profit and,
therefore, both contractor A and
profit
hands,
where—even in
cells,
a
before
cost
2s, you may be wise, in examining thoroughly much of the United States Gov¬
the-profit and interest opportunities in the 2%s of 1960/55, selling at
,111.19.to yield 1.45 after takes. . . *. That's a tax-exempt bond, as
always ready to
70
that Puerto Rico and the Virgin
stated range, bearing a good enough coupon to
In
a
report on the wartime Islands had "experienced severe
give earnings to giant-sized institutions. ... And now that the free
riders and speculators have been cleaned out, the possibilities of a status
of
territories
and
island
dislocations" and Alaska was now
smart recovery in the 2s are substantial. I
possessions, Secretary Ickes dis¬
a thoroughfare for offensive action
ci osed
that officials expect that
ANOTHER SUGGESTION—THE 2%s
liberation of the islands will find through the Aleutian chain.
turing within the
they don't harm
unfortunate illustration is the very
best proof any one could ask tha
assumes
over
on our
The ever-present little
70
that
untenable
that
-rand
30
$88
hold
$24 (equivalent to 80% tax)."
margin
hair,
our
-70
should receive
to
Judge
in
are
clothes—in the air all around us
our
18
40% tax), while
contractor B pays Federal taxes of
The
cells
variety of yeast is used in the making
rifle but
of $12
per
that,
actually, yeast carriers. Tiny yeast-
.
taxes
taxes
pays
after
you
In fact, we are all,
himself.
one
$100
before
Profit
minute-
a
and the fellow who calls
are,
is
$80
r 70
,
Profit
"yeast
you a
cerned, but that's exactly what you
"B"
30
Cost
call
wait
please don't become perturbed or con¬
$80
■B"
$100
.
logical time because
Now,
"A"
"A"
with the single exception of Fed¬
eral taxes. Let us further assume
case
Renegotiation
Price
unit cost
same
After
Renegotiation
A and B, each making
the same article; for example, a
rifle, sold to the Government at.
a
price of $100 per rifle. Each
tractors,
of that
.
price of $80 gives one con¬
a
lower
net
profit and
gives the Government a lower net
price:
...
possible offset to this may be selling of bills and certificates
A
do
same
tractor
clearly why business¬
He said, "Let us assume tvyo con¬
has
markets.
shows
should
same
We believe the Judge's illustra¬
that the costs before taxes in each
there's
So
they'll
time,
same
Washington "Post" says,
Congress will bear in mind
that the Renegotiation Act is a
men
instance, when the fourth war loan gets under way, banks
losing private deposits, against which they must keep re¬
serves.,
They'll be losing them, of course, because non-banking
institutions and individuals will be buying the new 2JAs and 2V2S. . . .
.
Jhe
tion
a
$30 and a
pay
exactly
price to each of these
two
contractors, if they showed
equal efficiency and cost reducing
ability. Here is a comparison of
Government cost in the Judge's
proposed test case, which shows
that his decision to buy at the
"If
the coming rally will be the easing of
markets, according to experts.
be
.
of
of
Act, it is intended that the
the
The editor
mittee's amendment."
For
will
than his competitors."
tion
taxes
Government
price and not a tax law, it will
refuse to agree to the Senate Com¬
.
.
.
lyze the structure today, that makes considerable sense.
,
before
.
.
Did anyone ever
carrier"?
.
.
.
timidated
,
Leaven
.
mal affair all the time, it acts abnormally at the year-end—which
Judge Patterson says, "It would
Height be interpreted as entirely logical if you wish to take the sen¬ be
just as sensible to agree to pay
tence apart.
And to be specific, the quiet, lifeless movements of
a higher price for a suit of clotnes
the moment are both abnormal and logical at one and the same time.
or. an
automobile or any other
There's virtually no activity because institutions are waiting
piece of desired property because
for the fourth war loan drive to use up their funds.
.
.
Selling has
the particular seller was subject
dried up,# as should be the case after so many months of "cleaning
to a higher income tax liability
house."
And the price level is just about motionless. ; . . •
.
CORP.,
YORK
.
.
.
NEW
proposes
series.
DISTILLERS
SCHENLEY
computed.
testimony, you will find that the principal complaints
bit around the yearend.
Some preliminary reinvestment demand.
.
.
.
A little against the Act have been the in-<s>experience and misunderstanding before taxes and $6 after taxes, it
speculation.
Lack of selling due to the fact that most institu¬
of ' the
Boards,
together
with would be necessary to allow con¬
tions had completed their readjustments by the last week in Decem¬
claims that the Boards have in¬ tractor B to continue his present
ber.
You remember.
But now that the market is an abnor¬
it
will be of interest to our fellow Americans.
This is number thirteen of a
.
.
.
With the 2V4S
now
accepted
as
FREE—Would you like a handsome book¬
let containing the
first ten articles in this
series? Just write your name and address
on
the
back of a penny postal and send
it
to
m.e,
care
of Schenley- Distillers
Corporation, 350 Fifth Avenue. Neiv York
I, N. Y. It's yours for the asking.
the
MARK MERIT.
of
Schenley Distillers Corp.
in
a
sense."
the
in
On pages
347-8 he
us
quasi-boom."
All this, in plain English, means
that we need never put on the
'brakes. "The right remedy for the
trade cycle is not to be found in
abolishing
booms,"
in
holding
manently in
a
investment
back
on
be
to
thus keeping us per¬
'slumps and
ment
stronger
than
to invest.
the
ployment for their time.
This
illustration,
in spite
says,
all
times
nomic
376 he says,
be intrinsic
commodities
the
nomical
.
by
amounts
the
simple
of. reversing progress, de¬
means,
stroying our machines, our spin¬
ning and cloth mills, for instance,
and thus forcing a return to hand
•
of
inade¬
the
weaving.
So
real sense, we have
alternatives of security in em¬
a very
time which they ployment, on the one hand, and
The ques¬
can
use
toward better housing^ progress on the other.
better clothes, a "more abundant tion is one of degree as to how far
life." But they havehot yet found we are willing to sacrifice mate¬
sented with spare
may
the
scar¬
of
means
rial progress
using it and, until
so
ebb
When high wages
the brakes.
on
Lord Keynes' premise that there
We
tration.
the
"civilization
a
see
the mining can be no such thing as general which has solved the problem of
gold that tends to slow down over-production, if that correctly production but failed to solve that
states his
of
expansion
position, is in line with
below the rate of business expan¬
much accepted economic doctrine.
the
sion.
monetary
of
rate
also
then
And
.
we
have
limits, legal or otherwise, to the
volume of deposits, which check
Human
wants,
reasoning
so
the
runs
We
of distribution."
the midst of
usual
this point, can never
be fully satisfied.
There is there¬
on
see
plenty," "hunger side
side with too much food."
"Over-saving" has not caused'the
trouble but over-investment.
with the tides of business.
Let
In
the tides;
of ideas,
overroptimism at one
point,
overpessimism
the next,
overestimate at one stage, under¬
estimate the next, expanding and
contracting, inhaling and exhaling
in
response
to laws of nature.
a
Keynes'
ideas.
Politicians seldom yearn to put on
opened its arms to Lord
powerful free-spending
.
ployment by discouraging capital
arrestment? See, for instance, Ed¬
gar M. Queeny's book, "The Spirit
therefore,
on
some
plant capa¬
post-war un¬
of new inventions,
new
products and new services.
What seems not so fully under¬
stood is that the emphasis, for a
should be put either
inventions as do not
while at least,
such
new
displace labor at all, or else, if the
inventions do save labor, on in¬
ventions
in
industries like the
which
demand" for
have
their
products and can therefore
selves, by cheapening their
them¬
prod¬
automobile
an
"elastic
industry
ucts, constantly mop up as much
or more labor than is displaced by
taxing savingsriso that
"savings will not outrun invest¬
ment"?
Can the dislocation be
the new laborTsaving inventions.
The
foregoing analysis envis-^
cured if only the chief of the tribe
Enterprise," Charles Scribner's
ages
a
normal upward rate of
can find a nice unexpected hoard
the brakes and the New Deal yms Son<s, New York, 1943, pages 56-63.
of wampum ,and j start passing it progress curbed and limited by the
in especial need of ample piirse What is the difference between
around to create new "purchasing necessity of the reabsorption of
Lord
Keynes,
Who
wants
less
as well as ample patronage if it
the labor it from time to time dis¬
brakes, and business which de¬ power"? Will the tribe really get
was
to hold together its looselywhat it needs in the way of more places. If there were no limitation
Do
knit party. In somewhat modified mands a wider open throttle?
clothes and food and houses if the on this rate of progress other than
forms
these free-spending ideas not both demand more speed?
puts
the ' unemployed to mere shortage of money, Lord
The difference does not lie so chief
are
still potent.
If correct they
Keynes might be right and our
may
create
a
wonderful new much in the nature of the pre¬ work on trails and parks and
cyclical unemployment problem
world. If wrong they are danger¬ scription as in the character of the pyramids, or will that not rather
might be solved by so "managing"
disease diagnosed to be cured.
ous and ought to be exposed. What
If discourage genuine reassimilation
honestly desirable produc¬ money as to keep interest rates at
the pace of progress is too slow into
is the truth?
an, artificial
low so as to stimu¬
tion?
But if it
Two obvious objections to them we do need stimulation.
Speaking broadly the following late continuous full-blast indus¬
becomes too rapid, as in 1929, we
instantly occur. The first is based
But low interest
conclusions seem warranted. While trial activity.
need
a
on, centuries
of recorded history would
sedative,
more
rates, as has already been said,
Lord Keynes doubts we there may be no upper limit to the
which teach that over-liberal gov¬ brakes.
necessarily stimulate
ultimate extent of our material would
ernments have uniformly wrecked can ever
too fast
themselves "on the rocks
of loose
Why has this plain
teaching been so seldom heeded?
fiscal
It is
policy."
because
found for spend¬
is always
excuse
seductive new
some
The people want the money.
The politicians are eager to give
it to them. ' At the time of the
French Revolution the excuse was
ing.
"assigna'ts" were wonder¬
that the
brakes.
need
or
more
His_ argument depends
on
the assumption that our cycles are
not caused by over-speeding and
must fail if his premise fails.
In
one
there
sense,
can
sion.
The
point
of
be
we
be
timing.
in
the
have
arises
seen,
on
a
General
over¬
secular
sense
different thing from gen¬
a
secured by valuable lands
which the revolutionary French
eral over-production in the imme¬
Government had confiscated from
the church.
Today it is that un¬
there is
fully
and
employment
are
caused
"The
by
thing
only
business cycles
too
little money.
learn from
we
history is that we never learn
history." No one ever seems
from
the brakes.
objection rests
to want to put on
second
The
on
It argues that there are
theory.
cycles in all production, a potato
cycle, a hog cycle, a cycle of in¬
ventories with excess at one stage
diate
insufficiency
that
by
analogy
be cycles
that
we
assertion
that
ultimately foreseeable
no
limit to the upward march of our
material progress simply does not
warrant
the further assumption
half
can
of
never
of producers' goods such
must
expect over-op¬
over-expansion at one
can
be
sary
labor-saving
of
ma¬
chinery and methods, the pace at
which these machines and meth¬
ods
the
are
introduced
are
much
outrun
the
cannot safely
pace
which
at
displaced by the process
reabsorbed into new and genu¬
men
inely
useful work.
which
occupies itself
fishing, while the other half does
the
community
men
have
hunting.
These
plenty.of other wants,
homes instead of caves, clothes in¬
stead
oi
skins, vegetables and
Sound reab-
sorption cartnot result from so
simple a solution as the mere mul¬
at
for really sound reabsorption.
less
even
multiplier to all kinds
Both
gold standard, in calling the turn,
ernment can
applies
private enterprise and gov¬
help-with this process
of reassimilation but in the long
themselves.
a
wholly necessary correc¬
of the
tive to a false overestimate
much must • depend upon the
run
men
with
us
when
ulti¬
we
"
Congressional en¬
The time for
actment of
national labor draft
a
law is near,
Senator Austin (Rep.,
Vt.) said on Dec. 25, in disclosing
that members of the Senate Mili¬
tary Affairs Committee had con¬
ducted
a
confidential study of
in relation
home-front man-power
stepped-up war tempo.
Senator
Austin
declined
to a
to
public details of the report,
but said "it has increased our be¬
lief that we are confronted with
make
■
of such direction of
the labor resources of the country
as will increase the efficiency of
our
war
effort; it must be in¬
creased, and in my opinion legis-.
the necessity
lation will be necessary to accom¬
plish it."
In
reporting this
Associated
Press Washington advices of Dec.
25 further said:
The man-power
study was con¬
direction of
adviser to
the
under-
ducted
Colonel Lewis Sanders,
.Military Affairs Commitee. It
military and industrial
the
covered
prospects
and
needs
man-power
as
of Dec, 6.
would
;
he,
seek action by the military
Austin
Senator
indicated
,
committee soon after Congress re¬
Jan.
convenes
10
the
on
pend¬
legislation
jointly sponsored by him and
Representative Wadsworth, (Rep.;
ing compulsory service
N. Y.)
•
-
■
.
,
,
early last year, the;
make both men and
Introduced
bill
would
women
essential
subject to assignment to
war jobs as needed. In
registered
act, it
would require the registration of
of expansion at a time when, ac¬
women
between the ages of 18
cording to the theories here pre¬
and 50 for possible conscription,
sented, our difficulties lay in too
in war jobs in industry. In hear¬
great general expansion. Factory
expansion, of course, does temp¬ ings earlier this year the legisla¬
tion was strongly opposed by or¬
orarily mask its own unsound ex¬
cesses- by
reabsorbing labor and ganized labor and it never reached
a vote in either house.
providing a decptive "mass purSenator Austin said the con¬
chassing power" in the unhealthy
new
factory
construction.
The tinued heavy drafting of men for
question is whether new factory
military service, plus • a public
or
is dependent on the? in¬
troduction
-
They would merely apply a more
However, greatly material
made.
indiscriminately
without the selectivity neces¬
be any limit
the next, and
quite fully doing the community
there must also
timism and
advances
once
tiplying indiscriminately, through
the provision of more money and contruction can be overstimulated.
lower interest rates, of the manu¬ If all we need is more and more
upward to
the pace at which
facture of existing types of pro¬ factories, regardless of type, then
progress advances.
ducers' goods.
What is needed, if Lord: Keynes may be right. If,
An illustration of a type dubbed the
community is to realize its however, we can have temporary
by Mr. H. V. Hodson, "Robinson opportunities of material progress, general overcapacity and general
Crusoe/' may help clarify this ab¬ is more genuinely salable produc¬ overproduction, as our "Robinson
stract distinction.
Suppose an is¬ tion, usually new kinds of goods Crusoe" illustration seems to show
land peopled by a savage
tribe, and services to satisfy new wants. we can, then he is wrong, and the
that there
one
and
The
sense.
af which
pace
progress
over-expan¬
confusion
production
can
as
never
everything
there is always a definite
mechanical temporary limit to the
progress
face
Near, Says Austin
of
go
of
ideas
political
Time For Labor Draft
couragement
on
"the
are
and
punishment.
will lie in the en¬
already alert,
as
tides.
are
mately fail. Properly interpreted
the
depression of 1929 and its
aftermath was an example of such
employment, and one to which
many businessmen are fortunately
by
things
will
specific lines but in dealing with
potential over-production in all
lines at once. A useful path of at¬
tack,
they
way
philoso¬
phers,". they cannot, finally do
away with this rythm.
The more
they lead us to try to fight natural
laws the more punishment they
city will be not only one
of im¬
munizing or avoiding an excess in
expansion of credit at a cer¬ fore never any logical limit to our Progress, in the shape of the man
We can suf¬
ratio
to
gold.
Monetary economic progress.
with
the net,
has momentarily
fer from unbalance through over¬
scarcity results from both these
outrun its market and we have a
production of specific things such4
causes and forces up interest rates,
temporary "general over-produc¬
'ends booms, brings on depressions, as potatoes or hogs ,or airplanes
tion" of everything at once. Con¬
and thus inflicts trade cycles and but there can never be over-pro¬
sumers' goods are in excess..
So
duction of everything at once. To
unemployment upon us. The rem¬
are producers' goods.
The unem¬
put the brakes on everything at
edy is to end the "tyranny of
ployment does not arise from any
gold," do away with monetary once, therefore,. by high interest fault of money or the interest rate
progress
and but from a temporary lack of
scarcity, keep interest rates at rates, just when
artificially low levels, encourage prosperity are getting well under
proper
balance
in production.
"investment in the production of way, is almost a criminal action,
There is too much fish.
coward's
these (other) commodities," and a
policy,
one
which
What is the remedy?
Is it to
thus, instead of suffering from the should be swept into the limbo of
lower the interest rate and thus
alternations of elation and depres¬ outmoded aboriginal superstition
speed up the production of all ex¬
sion, just enjoy continous elation. along with its accomplice-in mis¬
isting kinds of producers' goods
If business refuses to spend the chief, the gold standard!
Let us pause a moment to clarify at once, bows and arrows, fish¬
added money made available Gov¬
hooks and lines and sinkers, nets
ernment must spend it.
All we this argument. Are not business¬
and floats?
Or is it to discourage
also
need to do is decline to put on the men
currently complaining
manufacture
of
all
these
that the New Deal has hurt em¬ the
real
economists
timidity.
throws
these
analyse
us
very
Powerful
expect progress.
the problem of excess
tain
unhesitatingly
great
too
But
Keynes is not likely to fare better
light on the problems of post-war
re-employmept for it shows that
the
"Government"
of
about
ocean.
tides to stand still and Lord
ocean
in the interest of eas¬
reasoning
This
"want in
by
brakes!
side
Americans
tides
King Canute failed to compel the
scarcity of capital."
tother than gold, but in abolishing
actually a curse.
The. brakes need never be put on
slumps.
The fault with the gold
In fact, we see all the usual ple, once the question is fairly
standard has been that it does put general investment.
socialistic nightmares in this illus¬ presented, are not likely to err on
.and high prices check
the
of
flow
and
the normal level of the
ing the impact of progress on em¬
ployment. The descendants of an
adventurous and pioneering peo¬
they do, they have nothing more
to live on and their spare time is
intrinsic
for the
reasons
fact
Any¬
misleads labor who
otherwise.
We can in very
create employment in astro¬
'grossly
that, in
page
the
are no
says
the
spinning and hand
eco¬
on
for
reasons
one
quacies, throws strong light on our
subject and deserves serious study.
induce¬
These islanders are suddenly pre¬
"But whilst there
city of land, there
progress.
human-
ten¬
key to the
And
on
material
save
The weakness of
problem."
and
over-simplification
altar of lost motion, unscientific, like the
normal sacrifice
fearful glut
drug on the
and starve
while the hunters cannot find em¬
the inducement to invest has been
at
a
a
the fishermen are poor
strict
permanently "There has been a chronic
semi-slump; but in abolishing dency for the propensity to
thus keeping
and
over-investment
is
market, offered at bargain prices,
fishermen can get next to nothing
for it in the way of meat. -Hence
(Continued fr om first page)
remedy for the trade cycle is not
to be found in abolishing booms
Fish
fish.
of
I. M. Keynes, Trade Cycles,
And The Pace ol Progress
suddenly
is
There
Thursday, December 30,- 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
2638
The incentives
rate at which civilization can pro¬
ceed
along its upward course. The
addition to men already
under the selective service
complacency about the war,
had
growing
dif¬
contributed
to
the
of maintaining
ficulty
peak war.
production. Man-power problems
he
promise
to grow more acute,
said,
the broadening scope
as
military
the
activity
Pacific
ment
in Europe
increases
was
of
and
equip¬
requirements.
"We
most
are
entering
costly,
most
the saddest,
difficult
and
the fear brakgs then do need to be put on most challenging phase of the
of loss and, while no one should and cyclical disturbances normally
war." he said. "It will require
fruits instead of so much meat and be let
starve, these twin incen¬ initiated by too much money or an
the next.
fish. There is no limit to the pos¬ tives cannot be too
beyond
anything we
greatly diluted. overrapid rate of expansion of sacrifices
brakes do need to be put on gen¬
sibilities of their material progress. It will
be a mistaken "philan¬ money need to be curbed by high have been
willing to recognize
eral
investment
when
it goes
But at the moment they lack the
thropy" which handicaps poten¬ interest rates and a shortage of thus far.
ahead too fast just as much as
time to produce anything but meat tial new
enterprise by threatening money.
they do on investment in particu¬
"The No. 1 obligation of Con¬
and fish.
it with too great a dead weight of
Here,
as
elsewhere,
nature
lar lines.
One of these men has an idea. unemployment relief before it gets seems to move in waves.' Eco¬ gress will be to promote an in¬
Lord
Keynes, however, seems
corrective shrinking
normal balance in
On this argument the
stage and a.
back toward
are
the hope of profit and
,
-
sceptical'about the possibility of
For months he
general over-investment. On page
323 of his book he says, "It would
time making a fish net.
assert of the United
1929 the existence of
be absurd to
States
in
last
he
catches
the
puts
more
other
employs his
spare
When at
it in the water he
fish with it than all
fishermen
together.
fairly started.
The
certain
•
•
fact must be faced
that
a
displacement of labor by
labor-saving machinery> a certain
labor turnover,
nomic progress
oscillates about an
upward line of sound advance, as
its line of balance, in waves above
and below'the line." Such waves,
is'an indispensable" to
our
finite minds, seem
wasteful;
crease
son
any
in the effort of every per¬
who is competent
to perform
act in total war. This over¬
shadows all other obligations.'^ - -
Volume 158
Number 4242
THE COMMERCIAL & FINANCIAL CHRONICLE.
Opposing Viewpoints Of SEC And ISA On
Royal Bank of Scotland
HEAD
throughout
LONDON
3
49
Scotland
Dec.
cn
OFFICES:
Both letters
64 New Bond Street, W,
Mr.
public
/
Dean,
Investment
Associated Banks:
who
Ltd.
the
Australia and New Zealand
1817)
Capital
Liability of Prop.
—6,150,000
8,780,000
£23,710^000
Aggregate
Assets
Sept., 1941
SIR
^
30th
£150,939,354
DAVIDSON, K.B.E.,
Manager
General
Office:
George Street, SYDNEY
The Bank of New South Wales Is the oldest
and largest bank in Australasia.
branches
B70
all
in
of
States
With
over
Zealand, Fiji, Papua and New auinea,
and
London,
It
and
efficient
banking
traders
offers
the
most
service
to
complete
investora,
interested
travellers
and
theaa
in
LONDON
Street,
E.
with
arrangements
throughout
to
the, "Times"
Dean
raised
the
the Delaware Power
in
floating
issues
&
of
issue
the
S.
U.
sions
Office
Head
Cairo
Register
No,
CAPITAL
FUND
/'.
■
that
almost
before
two
this
"whereas
and
1
Cairo
months
a
been
occa¬
inquiries of
that
advised
.
no
in their anxiety to take ad¬
By
country
and
finances
of
came
could
be
"I have been
a
de¬
few
and
deal
a
a
competitive
with
negotiated
under
competitive
our
went
"and I believe reliably, that
(with one or two exceptions) the
issues of public securities offered
by
at
AGENCY
Northern
much
as
the
open¬
as
three
or
four days
securities
that
to
were
tion
a r
with
Thomas
and
all
ever,
rule
confers
of
equality
greater
the
the
it
Morris
bank
and
in
what
1781,
much,
competitive bidding rule has
functioned with marked success."
Capital—
conducts
description
every
an
United
interview
correspondent
Executorshipa
also undertaken
a
in
ex-^
Oakland,
;
"The
transaction
must
table
of
with
Calif.
taxes
banking and exchange business
and
keep the present dollar volume of production when
peace comes by servicing the national debt through a transaction
(sales) tax, plus a high income tax which will
eventually retire the
Press
£2,000,000
£2,200,000
Fund
"We could
so
be
and
income
sufficiently equi¬
that
labor
will
not
be
unjustly taxed and the entrepre¬
neur
will keep his incentive for
new
ventures," • Mr. Kaiser said,
according to the United Press dis¬
patch, which further stated:
The
Roosevelt
signed
correspondent interrupted:
"There have been suggestions that
you
would be made available
might be
a
Presidential
can¬
Mr. Kaiser looked the other
way
the legislation freezing
quickly, dusted his neat blue suit:
security taxes at the present "Let's not talk" about that. I'm a
rate of 1 % for 60 days starting
builder."
Jan. 1 and permitting the duty¬
Then, returning to his theme:
free importation for 90 days of
"The
peak of America's War
grains to be used for feed.
production in almost every item
This measure, which passed the is
over.
The time has come to
Senate
and House
on
Dec.
17,
begin the gigantic task of shifting
originally dealt with grain for
23
social
livestock
feed
curity rider
a
but
was
the
social
se¬
attached to block
back
on
Jan. 1
i-*r
credit
four
sary
since
of
a
provision in the
current rates for all of 1944.
Passage
noted
page
in
of
our
this
issue
measure
of
Dec.
2563.
was
'23,
pays
"I
times
the
amount
neces¬
for private business because
the
pending Senate tax bill to extend been
r
of
"Credit has been reduced three
employers
and employees. The
temporary freeze was decided on
is
economy
war;
the
furnished, the creative
minds, inventors and planners,
then the builders, then the dis¬
tributors
and
sellers
would
get
peace-time goods into production.
"Fantastic
things
ahead.
lie
Don't
can
no
ask whether management
produce.' The West produced
ships before the war. Now we
'over the hump in shipbuild¬
are
ing'
before
even
we
have
hardly
that
functions
begun tp fight.
"Can't
envision
you
stamped
out
in
steel
houses
units
and
the great future of air travel when
a
to
million
live
boys who have learned
and
work
in
the
air
of
however,
the
bank
it
—
Outlook"
also
was
joined
chartered
the
in
here
for
that
now."
Permanente
is
He
working
referred
Hospital,
or
right
to
the
Kaiser
only
customer,
and
it
a
great
workers all necessary
medical
credit risk
pool. with ' the banks," investment
attention
for
week, deducted from
voluntarily.
'
hospital and
50
pay
cents
a
checks
Members
in
120
1782
New
banking
During the re¬
approximately
and
support
was
After
the
First
States
of
was
time
a'
great
when
$1,-
assist¬
financial
desperately needed.
Revolutionary
Bank
of
the
War
United
chartered by Congress
was
in 1791, arid proved to be
great
a
But due to the antagon¬
of
state
banks, and to other
political factors, its charter was
not renewed by Congress and it
closed down in 1811.
War
of
1812
Thus, when
broke
the
upon
country, there was no national
banking institution, though there
was
a
large
number
of
state
banks.
However, these
tively
weak
many
of them
when
and
the
Exchange
national
1864.
System:
serve
Government
at
Stock
Bell
Teletype—NY 1-1248-49
(L. A. Gibbs, Manager Trading Department
merely
ance
York
BROADWAY, NEW YORK 5, N. Y.
Telephone: BArelay 7-3500
Reserve Act
250,000
Request
on
Laird, Bissell & Meeds
was
legal power
Congress, the
maining years of the Revolution¬
ary War the bank loaned to the
rela-t
were
ineffective
failed at
time
a
Government
and
badly
and
vital
"In
Federal
the
instituted
we
banking"
to
as
not
cure
pe¬
financial
tunities
great
a
system,
and
correct
riodical
debauches; not
simply indeed to aid the banking
community
alone,
but
to give
vision and scope and security to
commerce and amplify the oppor¬
the
well
increase
to
as
capabilities of
industrial
our
life, at home and among foreign
The help afforded the
nations."
country and the Government dur¬
ing World War I by the banking
system, not only through aiding
in "Liberty Loan" drives, but also
through the
making of direct
loans
the
to
providing
a
Government
known
to
Government
ready
bonds,
need
and
market for
is too well
than
more
passing mention.
this
,
In turning now to World War
II, it is interesting to note what
needed strong financial aid.
It is
of interest that a few weeks be¬
Edward L.
fore
of
New York, now the National
City Bank of New York, opened
Smead, Chief, Division
Operation, Board
of
Governors, Federal Reserve Sys¬
tem, has to say ^regarding the
its
service
broke out the
war
City Bank
of
doors
diately
and
its
to
upon
in
the
loans.
war
During
Civil
almost
was
called
Government
the
financial
imme¬
assist the
flotation
of
^
first
years
War, the North faced
ficult
situation.
of
the
a
Specie
backs,
issued, and gold and
were
coins
silver
were
driven
out
of
circulation.
na¬
tional
banking system, in order to
provide
note
Secretary
of
Chase proposed a
safe and uniform bank
a
currency
States
bonds,
secured by United
and
market
a
In
for
wartime
(1)
'.banking
the
sys-i
rendering tne
na¬
service,
as
follows:—
Participation in War Loan
Drives:
the
banks
co-operate ac¬
tively and fully with the Treas¬
using
ury,
their staffs
and
mail
facilities in active selling.
(2)
War
the
Sale and Redemption of
Savings Bonds and Stamps:
banks
volume
sell
to
and
their
issue
a
employees
large
and
the general public.
(3)
-
February
1863, the National Bank Act
which
tion. He points out that the banks
are active in seven vital fields of
the
Treasury
Bank
tern of today is
dif¬
payments were suspended,,green¬
War Loans: in addition to
(Continued
was
on page
2649)
passed,
later to be repealed and
superseded by the National Bank
Act of
June, 1864,
Thus, the fi¬
Bank of
nancial difficulties of the Govern¬
able
years
"As for the people's health—a
Circular
the
Inas¬
there
as
—*
and their
a
to the
as
Continental
system
turn?
I
model
be¬
"Bank Stocks
by the State of Pennsylvania and
operated under this charter until
ment
re¬
and it
was
charter
to
America.
United States bonds.
the Government has. Foundation, which gives shipyard
off every week.
propose
After
is
both
or
there
peace-time
efficiency in production.
scheduled automatic increase in
the rate to 2%
to
bqth to
great and small enterprises.
didate"-
on
-
insurance companies, the
Government and labor unions put¬
ting billions into it. The credit
1
Signs Bill Freezing
Security Tax For 60 Days
——————
trusts,
condition
order
others,
really, required.
In
therefore, Morris ob¬
doubt
some
ism
Henry J. Kaiser, West Coast shipbuilder, offered on Dec. 25 his
plan for retiring the national debt, but he waved away suggestions
that he might become a 1944 Presidential candidate.
debt,'" Mr. Kaiser said in
Subscribed CapitaL___£4,000,000
Dec.
in
togetherwr*—
and
considered
broader
was
May,
success.
our
Service
elusive
Uganda
India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
President
precarious
proved
with
cates and "we have concluded that
Through Income And Sates
Taxes, Henry J. Kaiser Proposes
SUDAN
Government
Colony
Trusteeships
a
much; restricted, and
to be helpful,
were
Robert
opportunity for bidding by syndi¬
Retire National Debt
in
26, Bishopsgate,
London, E. C.
Bank
Paine
though
the
C.
Branches in
The
Government,
y
the
Office:
Reserve
DEUSEN
consequently founded the Bank of
Pennsylvania. Its iimctions, how¬
be
,Mr. Purcell maintained that the
substan¬
Public
the
few
sold,",
them, the $45,000,000
Indiana
and
a
have ample time for full
investigation and consideration of
in several
or
bids
In
would
August, 1943, subject to Rule
U-50j after the initial public offer¬
ing to the public at the initial
public offering price, have been
institutions
for
bids.
where it was/clear that all bidders
since
to
of
instances,
at the .request of the issuer, we
have shortened the bidding period
w
informe'd," he
„■
an
action
consent
ing"
of the securities remain unsold.
of INDIA, LIMITED
Paid-Up
drastic
North
tisements
sold
NATIONAL BANK
Kenya
take
of
required
of the syndicates substantial blocks
Towns
Head
to
necessary
in
were
its
bidding rule between the adver¬
the bonds
Seattle
-
280
indispensable service to their
During the Revolutionary War the
Government,
Colonies
gress
underwriters is the ten-day period
been offered within approx¬
£3,000,000
principal
to
its
the
E. A. VAN
Bank
deal
grants acceleration, the issue could
and
A.
that George Wash¬
ington and the Continental Army might have proper financial
sup¬
port.
Robert Morris, superintendent of finances of the Revolu¬
the
Bankers
L.
-
tained from the Continental Con¬
differential between
tiated issue where the commission
£3,000,000
in
EGYPT
Saa Francisco
27!)
banks perform
war
able time pressure. In that regard
it may be noted that the only time
was
effected,;
comparable nego¬
.
Branches
,
A.
vantage of a prevailing market,
customarily work under consider¬
elapsed
-,
.
"fling William Street, E.
7
have
suers,
issue
on
"In one of
LONDON
*nd
have made
we,
its
of
number of
bankers and issuers in that regard
and
obtain necessary
information in
time to give detailed study to the
terms of the offer. Also, he stated
tially lower prices,
8
mechanics
a
preferred stock. He charged that difficulties have been experienced
operation of the SEC rules—spe¬ in the practical functioning of the
cifically Rule U-50—had made it rule. "■,
impossible
for
underwriters
"As you know, bankers and is¬
to;
days thereafter."
A.
of EGYPT
«
the
of
operation., On
Light Co.
bonds
livered and the issue closed
Banks
NATIONAL BANK
RESERVE
more
than .two
said:
new
L.
This Week—Bank Stocks
In time of
"Although our competitive bid¬
ding rule for utility securities," he
tention
24
WIRES
-
Bank and Insurance Slocks
of
..j
on,
FULLY PAID
criticism
Dec.
:
Commercial
the
to
years, this is the first
criticism that has. come to our at¬
Mr.
Chicago
-
TELETYPE
Ex¬
date
C.
Berkeley Square, W. 1
Agency
the
this
on
St., Los Angeles
PRIVATE
New York
assertions, and paid partic¬
attention
ular
of. railroad
reporting
CALIFORNIA
7th
a mem¬
Stock
imately ten days after the filing
OFFICES:
Threadneedle
47
York
said,"has been in effect for
further
have
countries.
29
OF
210 West
delays involved under this rule.
securities.
In
Australia,
New
.
case
do
Brokers
&
(P, C. T.)
Orders solicited.
•
ALFRED
Head
Dean's
by citations of the experience of
£8,780,000
-
would
to 5 p. m.
m.
Mr. Purcell contested all of Mr.
issuing of se¬
it
of the New
matter, the Washington advices of
BANK OF
NEW SOUTH WALES
Fund
that
thing in the
same
In
Reserve
of
cost
COMPARED
-
BUTLER-HUFF & CO.
change."-:' y,.
,
the
curities and
Paid-Up
the
Association*
represents
Bankers
underwriter which is
an
ber
prior arguments that
actually operated to in¬
rule
crease
to
,
a.
Inquiries invited.
or
locked up approximately
ers, were
com¬
'■
reiterated
Glyn Mills & Co.
Reserve
holding
utility
panies.
Mr.
(ESTABLISHED
Washington, force¬
Quoted
—
Alldredge, Chairman of
fully upheld the competitive ibid-., from'August to December, which
ding rule of the SEC as,applied is a matter of substantial concern
to
Bank,
Trading daily 7
JVss due 1973, in which the syndi¬
cate was headed by Halsey, Stuart
Purcell, it is Teamed from
"Times", from
I
ASSETS
Deacon's
addressed to J. Hadem
were
Sold
—
REVIEWED
-
Special Bulletin and Booklet Service to Dealers
of letters
special-advices to the New York; & Go., the funds of the ,underwrit¬
£108,171,956
Williams
release
sion.
Gardens, IV,I
TOTAL
simultaneous
a
the Interstate Commerce Commis-<§>—
Smilhfield, E. C. I
n
in
24
by Ganson Purcell,
Chairman of the Securities and. Exchange Commission, and Arthur
Dean of the legal firm of Sullivan & Cromwell of New York.
Charing Cross, S. W. 7
BurlingU
ANALYZED
of railway
Bishopsgate, E. C. 2
8 IVesl
Bought
Sharply opposing viewpoints,on the proposal 4o subject issuance
securities to compulsory competitive bidding were voiced
OFFICE—Edinburgh
Branches
Insurance & Bank Stocks
Presented To IGG
Incorporated by Royal Charter 1727
2639
were
eased
degree during
of the war.
The
d" consider¬
to
the
last
New York
two
next
important change in
the banking system came just be¬
fore the opening guns of World
War I, when Congress passed the
Federal
signed
Dec.
Reserve
by
23,
while
to
Act, which was
President Wilson on
1913.
It
seems
worth¬
Members
and
quote
the
following
words of Carter Glass, champion
and
Bought—Sold—Quoted
advocate of the
Federal Re¬
1
WALL
New
other
ST.
York
Stock
leading
Exchange
exchanges
NEW
YORK
Telephone Dlgby 4-2S25
5
0'
tent's lob
capital, labor, management, agri¬
culture and the learned profes¬
sions alike."
He stated that the
of management's job is
practice what it preaches—that
first part
•to
responsibili¬
"ous.ness has certain
that, it simply must assume,
voluntary acceptance
of social stewardship is the keyscone of liberty,"
"To this end,"
ties
because the
Prentis, "management
a better
sense of
Mr.
said
acquire
must
proportion in respect to
competi¬
Formerly a
prepared programs.
Teaching
our
understand
to
zens
assumption,
namely,
that
the
American people want freedom.
It offers no miracles, no panaceas.
salesman cannot sell
It
nothing
promises
To be
natural
one
anyone
less
own
efforts.
what
a
he
knows
will
it
a
how
do,
product
it
is
its
and
un¬
made,
required to per¬
petuate the free institutions that
we
have until recently so com¬
ernment stepped in and
control
the
dis¬
principles into
,
competitive business—one of the
cornerstones of our liberty.
In the early days of the Repub¬
administrative
when
lic,
not because it is revolution¬
new,
ary,
power
lodged in the hands of Presi¬
dents who had themselves helped
was
not because it promises some¬
for nothing
thing
the best from
takes
has
that
America
the
seeks to im¬
and
been,
it
but because
to
Fortunately—apart from
sell.
old favbrite, the Federalist
Papers—there are some excellent
books, now available from which
get that, information in
easily digested form. If there is
can
you
,
security.
bureau¬
cracy through revival of local re¬
sponsibility for local affairs.
of Address
T^xt
As
of
some
of
Prentis
ML
the
privilege of speaking in
capacities
at ' previous
meetings
of J the'(Congress
of
American Industry.
I can truth¬
had
various
that I
however,
have
fully
say,
never
been more eager to drive a
than
home
message
I
am
this
afternoon in my function as Chair¬
Legislative Policies
Commission, which might far bet¬
the
of
man
"The Better Amer¬
called
ter
be
ica
Committee.y During my talk
shall •utter 4,375 words
and, frankly, I ,wish I. had some
I
today
sort of
by which
rthe exact , range of
every mind; and heart in this au¬
dience. If or .time is short, and the
rftdpr apparatus
could ,ge,t
I
of those who seek to
task forces
undermine the governmental sys¬
tem
which
under
America
great,
have
themselves strongly
has
entrenched
grown
in
the
fox
holes, pillboxes and fortresses of
bureaucracy. To loosen the throtr
tie hold that they have secured
competi¬
tive business — one of the vital
bastions of our freedom—is a job
the throat of private
on
that will call for every bit of in¬
telligence and zeal that American
business
managers,
and
other
patriotic citizens, possess. As a for¬
um er Cabinet officer of the present
administration said recently: "We
crusade to restore
America to its own people."
reed
a
great
Looking
business
back
over
my
own
I realize that it
took me quite a while to learn
that a real business manager has
career,
two functions—not one.
is
clear:
He must
lay
The first
plans and
them through.
The second
is not so obvious, but equally im¬
carry
portant:
his
He
associates
must
and
and
withdrawal
create
among
employees an
atmosphere of sympathetic under¬
standing of his objectives, which
wTl ensure the smooth and suc¬
cessful execution of his carefully
of
taxes."
the free institutions that we have
until recently so complacently en¬
This, he calls "bold social en¬
joyed.
...
.
gineering" in order "to make the:
To use business terms, manage¬
economy workable under modern
ment's job is to take this program
conditions"!
Analyze the state¬
ments of Mr. Berle,
know, I have
you
sition
Assistant Sec¬
retary of State, in reference to the
testability of procuring produc¬
for
and
America
better
a
chandise
mer¬
That job
effectively.
it
—just as would be the case with
governmental any product in your own business
-—involves: first, advertising; sec¬
sources.
That
ond, sales promotion, and„ third,
pells national socialism,
Examselling. Handling the advertising
^e the radical monographs of the
is the function of the National In¬
Temporary
National
Economic
tive
from
instead of private
capital
Committee and the socialistic rec-
of
nnmendab'ons
the
Resources
National
Planning
Get the
Commission.
President's
recent
re¬
whose
Committee,
Information
dustrial
Mr,- Adams
program
Mr. Harrison, will
and
present to you.
The. sales promotion phase is rep¬
cooperation
Association in
resented by the group
destroy the individual rights that
the
had
Creator
my
•
Full
workable, dur¬
a
of our economic
placently enjoyed." '
prove it for the better America
to set it up, the people could rely
Mr. Prentis, who is Chairman of
ahead. It is based on facts, on ex¬ any man or woman hgre who has
on
the Executive Department to
the
NAM's
Legislative Policies
perience, On performance; on mu¬ not read these four books, let me
guard
their freedom tual
Commission and past President of jealously
trust, not suspicion.
It rests urge you to do so at your first
;hrough scrupulous observance of
the Association, likewise said that
"Challenge to Free¬
upon the recognition of the rights opportunity:
the Constitution and the exercise
jobs, freedom and oportunity for
of all classes of our population- dom," by Dr. Henry M. Wriston,
of executive self-restraint.
Later,
us and succeeding generations de¬
capital, labor, management, agri¬ distinguished President of Brown
as the memory of early struggles
pend on how well we safeguard
culture and the learned profes¬ University, who will speak at the
"the
mechanism by which our against royal tyranny grew dim, sions alike.
tdmorrow
night;" "The
Hence, the first part dinner
and
the
Executive-''Department
forefathers sought to harmonize
Of management's job is to prac¬ Spirit of Enterprise," by our able
the will of the majority wi,fh? the sought more spowbLB the Federal tice what it
Edgar M.
preaches; to recognize fellow-industrialist,
Courts became a mighty bulwark
personal rights of the individual."
that in the highly industrial world Queeny, of the Monsanto Chemi¬
of constitutional freedom.
In re¬
He further said that the preserva¬
in which we now live, business cal Company;
"The God of the
cent years, however, "sociological
tion of the Constitution's basic
by Isabel Paterson—
has certain responsibilities that it Machine,"
jurisprudence" has left the Amer¬
principles "is just as essential to
simply must assume, because the brilliant book critic of the New
ican people only one source
to
the continuation of the private
voluntary
acceptance > of
social York "Herald Tribune"; "Men in
look
to for the preservation
of
competitive business system of
stewardship is the keystone of Motion," by the eminent war cor¬
their liberty, and that is Congress.
this country, as the maintenance
liberty. Hence it is management's respondent, Henry J.-Taylor.
oi the political, intellectual and Today the 531 members of that job to weigh every day-to-day
For fear, however, that some of
body constitute the only dependspiritual freedom that the, Con¬
decision it is called upon to make you may not perform this home
ible defense line that stands be¬
stitution guarantees."
in respect to products and prices, work as promptly as you should,
tween them and national social¬
Legislative correction, Mr. Pren¬
dividends and securities, research
let
me
give a bare outline of
ism.
tis said, is necessary on these five
and patents, customer treatment the American system as I see it.
Do not say lightly that I exag¬
matters;
and employee relations — in the To our forefathers, tyranny was
gerate. Read the plan of Profes¬
1. Importance of private capital
light of the ultimate effect of such not just a word. They know what
sor Alvin H. Hansen, the trusted
formation in order to prevent the
decisions not merely on the in¬ it meant literally in terms of re¬
economic adviser of the present
advent of socialism.
dividual business involved, but on
ligious, intellectual, economic and
administration, in which he ad¬
2. A proper scheme of taxation
the whole national body politic. political oppression. They dreamed
vocates the establishment of a sodesigned to preserve individual
To
this end management must of a land where every man—no
sailed "Monetary and Fiscal Au¬
incentive.
acquire a better sense of propor¬ matter how humble—could have
thority."
Under his recommen3. The importance of sanely or¬
tion in respect to competitive tac¬ liberty and,, the
opportunity to
lation "the executive should be
ganized labor relations.
tics,. and think more and more in pufsue happiness in his own per¬
;
empowered to increase or curtail
; 4. Provide opportunity for every
terms of the long range business sonal
way, so long as he did not
individual to obtain sound social public improvement expenditures"
nd
"to
determine
the
impo¬ strategy required to perpetuate interfere with the rights of others.
The need for curbing
the
to
property, peace and freedom.
The problem of the founders of
this Republic, therefore, was how
to
combine these two opposing
took oyer But it does promise opportunity
able government adapted to hu¬
tinguishing points of excellence.
life. and a square deal. No sane Amer¬ How
man nature in
its manifold eco¬
many
of us managers of
Today management's job has been ican has ever asked more.
American
business really know nomic, intellectual and spiritual
extended far beyond its previous
It is not enough, however, to the nature of pur peculiar form of aspects, and to a large population
bounds.
That job now includes
scattered over a wide geographir
have a constructive program.
If Government? How it was put to¬
a
cal
area.
In
other
large portion of a task that all
words, the
it gathers dust in the archives of gether?
What the vital factors are
good Americans must shoulder,
question they faced was how to
time, it will never serve America. that have enabled it to function
make effective the majority will
namely, the creation of the type
Very
Management's job, therefore, is to successfully for 154 years?
of governmental climate required
of the people in governing them-,
take it to the people and get them few,
So, first, we must ourselves
for
the preservation of private
selves and at the same time not
to approve it—not because it is understand the system -we have
tactics, and think more and
more
in terms of the long-range
5.
government,
in
confine
protection of life,
rights,
John Locke's words, must
itself
good teacher, however,
must know his subject.
A
to
result of his
save as a
fellow-citi¬
the American
system is practical patriotism.
It is based on one primary
agree.
good business manager could stop
there.
But that was before Gov¬
tive
business strategy
fourth:
ests, but it is a program on the
fundamentals of which we" can all
(Continued fr am first page)
Thursday, December 30, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
.2640
conferred
upon
each person.
They resolved this paradox by
setting
government of laws—
As the
first step, they adopted a written
Constitution
with
its
Bill .of
not
up a
government of men.
a
Rights, as a permanent bulwark
to safeguard individual and mi¬
nority rights from hasty and illconsidered attacks by temporary
majorities. Hence, they purposely
made the process of amending the
Constitution
long and difficult.
That is the reason why sociologi¬
Hence, they resolved to set up a
cal
jurisprudence—stretching the
Constitution
to
meet
current
de¬
for
mands
legislation—instead of
honest .forthright amendment of
that
document
sion—is
so
freedom.
said:
the
peculiar
possession of
stitution.
blank
Let
discus¬
dangerous to our
Jefferson
Thomas
As
"Our
full
after
very
written con¬
a
make
not
us
is
security
it
a
by construction."
Iri the second place, our fore¬
fathers incorporated in their sys¬
tem of government the principle
of representative rather than di¬
rect action, with different terms
of office and different modes of
paper
electing senators and representa¬
tives, to cushion the action of any
current
majority, and to enable
government to function
large.geographical area.
Next,
of
provided
they
and
checks
over
a
balances
a
system
pain¬
by
would staking separation of the powers
of the legislative, executive and
from ever rais¬
judicial branches. I wish I had
ing its ugly head again. They gave
time to quote ,the provision on
us the best instruments
designed
this point in the Constitution of
to that end, that the mind of man
Massachusetts, which was adopted
has yet devised—our Federal and
in 1780 and which spells out ex¬
State Constitutions.
But we in
plicitly'the fact that jn the gov¬
business all know that no con¬
government- that
of
form
prevent tyranny
,
tract is worth any more
than the
Similarly, our
it.
behind
spirit
worth no more
than the kind of citizens behind
them.
It is management's job to
constitutions
are
help make the right sort of
citi¬
ernment of
departments
exercise
ever
may
Commonwealth
that
of the three
one
no
any
zens.
forefathers
Our
came
from
the
of
of either of the others "to
the end that it (the government
of Massachusetts) may be a gov¬
ernment of laws and not of men."
powers
As
Federalist
the
"The
Papers
accumulation of all
said:
powers
countries but —legislative, executive ancj.ju$activities of; the
they were fundamentally religi¬ cial—in the same hands,,..,.
.,,m^y
which
industrial
managers
and
ous people.' They put the phrase,
justly be pronounced t% y.OT
business men are meeting with
"In God We Trust," on every coin
definition of tyranny." HenceJhe
ministers, educators, farmers and
So the American
they minted*. So naturally enough
present blurring of the
ports of the Select Committee to
investigate
Executive Agencies,
headed by Representative Howard
W, Smith.
Your conclusions will
support mine.
people do have an early "appoint¬
with destiny" in respect to
their freedom — in fact, not in
ment
theory.
And because we are an
nation, business man¬
women's
organizations to discuss
of common in¬
'( '
national problems
terest.
,
function
sales
The
the
is
par¬
ticular task of the Better America
agement must assume the major
egment of responsibility in meet¬
Committee
ing that appointment.
task—not
plans
for
a
better
America .in the post-war years—r
an America
of jobs and freedom
but, taking the conclusions and
recommendations of the working
and
ciation
opportunity.
The broad ob¬
jectives of that program were pre¬
sented to you at the luncheon tolay by Mr. Crawford—our hard¬
working and hard-hitting Presi¬
dent, in his own inimitable and
inspiring*-fashion.
Mr. Weisenbu^ger has just given you its de¬
tails.) I| IM
a program for pro¬
moting production—for providing
\qbis gipd fetter living and secur-
't^-jin lhe American way.
It is
make possible all of
these things while retaining and
a
program to
mcreasing
ance
the
dignity,
self-reli¬
and freedom of the American
citizen.
It is definite, positive and
constructive.
It
each
specific step and the reason for
it.
It is not designed for indus¬
points out
creeds
and
,
industrial
Industry
many
to
honor
of
which
I, have
the
It is
our
be Chairman,
to
establish
policies—
committees of the National Asso¬
of
Manufacturers
—
help
management to do the job of sell¬
ing
these
and
the
policies
men
and
to
the public
-women
who
Congress,
For,
how mqch
post-war planning may be done
by individual businesses and
represent
after all,
us
no
in
matter
local communities and
States, the
ultimate success of all those pro¬
grams
hinges on the governmental
climate in which private competi¬
tive
.business will have to operate
Various means
this sell¬
ing job in your own community
will be placed at your disposal. But
to do it you must, in essence, be¬
when peace comes.
to assist you to carry out
come a
teacher. Someone has said,
of the Republic
responsibility between the. three
established was a religious departments of the Federal Gov¬
concept: the conviction that every ernment —. which had gone far
human being is endowed with a
even prior to the outbreak of the
soul that is sacred in the eyes of
war—is perhaps the most sinister
a Sovereign God. From this prin¬
of all threats to our freedom in.
ciple they deduced
two basic the post-war period. The rise of
theses;
*
the tyranny of administrative law
the
bureaucratic
despotism
First; they concluded that, since
God'had ereated man in his own from which we suffer todaysthe
cornerstone
they
;
—
image
with the power to
distin¬
of
majority of such
of
by the
divine-iv
r
aftertfuli
likely To
created
the:
voice
close to God's will
Vox populi, vox
voice of the people is
be
of
God!
Governments
derive their just powers
consent of the
from the
governed.
Their second thesis was equally
logical, namely, that every mortal
soul is endowed by its Creator
with
know,
islative,
,
between the leg¬
executive
functions had been
and judicial
kepi: sharp and
clear.
As
fourth
a
step, the founders
certain
Republic divided
our
human
feardall of them.
D.eir-the
impossible if the lines
be
demarcation
the re¬
beings sponsibilities of government be¬
and free discussion, was tween the Federal Union and the
pressed
natural
inalienable
human agency
that all business is ■rights that no
invade-—
Teaching
people
to whatever may justly
try alone; it is a program for the
make
goods
is
manufacturing; neither any man called "king,"
American people as a whole.
It
nor any group of men represent¬
teaching peonle to' want goods is
cannot possibly satisfy everyone, selling; Uacfmg cennle to work ing a temporary majority called
To guard these
for we do have diverging inter¬ together1 is organization. ■ I add a "government."
vou
teaching:
would
guish between right and wrong,
every
individual ought to listen
with respect'to the opinions ex¬
pressed by his fellow citizens, and
that, whatever judgment was ex¬
States, counties and towns. They
did that, so that each particular
segment of government would
not
get too big for an intelligent citi¬
zen
to understand its functions
and
elected
his
for
tives
Today, the
arrogated
has
state
and
become
representa¬
intelligently.
Federal Government
legislate
to
itself, so many
and has
extremely huge and
to
local
so
complicated
powers,
that
the
average
Congressmen will tell you frank¬
ly
that
even
it is
impossible for him
to read all of the
that is
proposed
or
legislation
desired by the
SrJu.
'
Volume
158
Number 4242
THE.COMMERCIAL & FINANCIAL CHRONICLE
various
Federal departments.
Inl with this fundamental philosophy
words, the size of the cen- so that they in turn may be able
political
trah government puts such a tre-; to cultivate an adequate and ac¬
mendous load on Congress that curate understanding of the vital
Those
other
(
place that private enterprise oc¬
function effectively to protect the \ cupies in the life of every Amerrights of the people who elected' icar\ citizen. All of this to the
our
representatives
them.
It
is
unable to
are
exactly
|
though a1
as
end
that
aroused
an
public im¬
legitimate self-
business corporation permitted it¬
self to expand to a point where
bued with its
the
protecting itself in the
benefits that the private competiive business system provides.
directors
officers
and
chosen
by the stockholders, found them¬
selves unable to cope with the
number
of
problems
that were put up to them for de¬
cision. Centralization of power in
interest
Washington,
At
and thus
destroys the opportunity
local self-government affords for
practical experience in citizen¬
ship. Unless a man first acquires
training in handling public
problems in state, county, town
some
city, he certainly is not likely
to become qualified-to deal with
the large questions
of national
scope on which his freedom ulti¬
mately depends.
Drawing from the experience of
British ancestors, the
fifth
our
keep the control of
the public purse in the hands of
the
House
of
Representatives—
to
.
the
arm
of government closest
the
Every effort at pop¬
ular self-government that I have
read about in history, has eventu¬
ally
been
destroyed
by
some
demagogue who has gotten his
hands on the people's own money.
In recent years Congress has del¬
egated
more
and
latitude in
more
respect to public expenditures to
the Executive Department. Hence
another grave threat to our free¬
dom in the post-war years is aris¬
ing
from what might well be
termed, the privy power of the
public purse.
',
the men who
the American Republic re¬
set up
the
served
largest
possible
field
for local and individual initiative
by strictly limiting the powers of
the central government.
In re¬
spect to business, only interstate
and foreign commerce was made
subject to its regulation.
The
appropriate
moment
our
preparing graphic
dealing with five
matters
which
in
respect
to
correction
legislative
is
The vital importance of pri¬
capital formation in order tc
prevent the advent, of national
1.
vate
socialism
in
the post-war
years.
A proper scheme of taxation
2.
designed
preserve
individual
which the develop¬
to
incentive
ment of
,
on
enterprises and
new
jobs depends.
3.
new
'
<
The importance of sanely or¬
ganized
labor
insure
relations.
social
so
as
to
unity.
Obviously,
representative democracy cannot
long exist in the face of acute
class cleavage."
4.
The importance of
providing
individual
opportunity for every
to
safeguard
his
own
future
against the four specters of sick¬
ness, unemployment, old age and
death.
Sound social security is a
stabilizing factor against revolu¬
tion and anarchy in any form of
government.
5.
The vital necessity
of curb¬
ing bureaucracy through
vival
of
local
local
the
re¬
responsibility
for
affairs.
Through
tions
these
and
five
others
to
presenta¬
follow,
we
hope to equip the business execu¬
tive during this coming year with
enough facts and enough definite
remedial
him
suggestions
to
become
.
to
true
a
enable
business
missionary, in behalf of a "Better
America through Better Private
of
of
landed
rockbound
England
the
would
our
Year-End Valuations
"the stern
on
coast"
of
fought their
or
Old
.
.
ancestors
have
never
and
•
New
of
into
way
the trackless Appalachians if they
had not been at an early stage
"in
the
Canadian Securities
recurring cycle of human
These
freedom;
tyranny
had
brought
spiritual faith; faith had
brought
courage;
courage,
the
appraisals
copy
them
contained
in
of which is available
on
are
pamphlet,
a
request.
.
will be freedom.
onstrated
Pericles'
of
Wood, Gundy & Co.
mo i
Thus they dem¬
the truth
once
more
Incorporated
assertion
2,400 years
that "the secret of liberty is
courage"; not food, not comfort,
not money—but just plain, old-
14 Wall
ago
fashioned
necessary, namely:
.
Last but not least,
is
presentations
people.
to
seek
present
Committee
or
was
the
under¬ specific
moreover,
mines state and local government,
step
will
of
means
enormous
own
tyranny
World.
2641
fortitude
body and soul.
ness
of
mind
Direct Private
Street, New York 5
Wires
to
Toronto
How: many busi¬
have
managers
equal
ecurities
cour¬
today—in the face of the tax
inspector, the factory inspector,
the boiler inspector, the wageand-hour
inspector,
the
labor
board inspector,, the SEC inspec¬
tor, the wage-ahd-salary stabili¬
zation inspector, the OPA inspec¬
tor, the WPB inspector, the Con¬
age
gressional
many
of
investigator?
us
How
willing
are
face
to
necessary, to pro¬
defend
our
, hard-won
and
constitutional
So
while
brothers
rights?
brave
our
sons
and
dying on the battleof management's pri¬
are
fronts, one
jobs is to have
mary
a
rebirth of
courage—no matter how loud the
threatening
whoops
war
bureaucrats
may
how
of
sound
the
in
our
business scalps
be drying at the moment in
cars, or
may
and all other pa¬
managers,
triotic, intelligent Americans, do
not fight the good fight for free¬
dom here on the home front, the
national
Political
indications continue to point towards the
weakening
challenge and the growing strength of ;the Progressive
Conservative Party.
All over Canada, and especially in the West
where it was thought that the Socialist movement made the
greatest
headway, electors have very plainly shown their disapproval of the
of
the
latest
was
socialists
in
An
eminent
American
author
CCF.
In
Edmonton
only
Mayor,
mendations.
candidate
riod,
a
already
men¬
distinct possibility
immediate
and
clear.;
—
As
tioned, this is
for. the
the
post-war
implications
would
be
immeasurably
strengthened, and investors
ing the Canadian situation with
the
this thought in mind.
solid figure of Progressive Con¬
significant indication
servative
when
After
a
stage,
moves
leader, John Bracken,
year's tour of the Do¬
platform,
to
renew
insisted
on
its credit,
not
complete disap¬
from the political scene,
a
following his resignation
of
Lib¬
as
It would
which
has done
if others which have
made
similar
should have
eral Premier
Al¬
everything possible to maintain
the country.
pearance
given
Treasury
recent
payment.
like Manitoba,
ceived with acclaim throughout
after
a
be patently unfair to a Province
re¬
was
A further
was
Dominion
berta treasury bill maturity and
situation and stated plainly
party's
the
refused
minion, his recent address to the
nation, in which he made a com¬
prehensive review of the politi¬
Also,
are1
■
here should not delay in review¬
the political
on
pe¬
Tire financial position of the
comparatively weaker provinces
de¬
were
CCF
one
: ——
Meanwhile, into the limelight
cal
destroying our po¬
litical, intellectual and spiritual
liberty, will ultimately win by
default, and our nation shall then
have fought World War II in vain.
the
Council;
the
one,
feated.
his
without
of
City
cept
midst
life
tactics
returned out or five vacancies
the
who glibly maintain that govern¬
ment
can
control our economic
our
CCF
Calgary
elected one of six aldermen; in
Winnipeg there was. a gain of only
one
seat and. the 'complexion of
the Council remainswirtually un¬
changed; BrapdOm'elected two oi
nght candidates'; in Hamilton, On¬
tario, all the CCF Candidates ex¬
many
their marble tepees along the Po¬
tomac! One thing is sure: If busi¬
ness
By BRUCE WILLIAMS
tor
persecution, if
tect
& Montreal
and
With
the
the
sacrifices,
same
reward.
regard to the market for
past
week, there was again
worthy of note from the
angle of price movement. Interest
further developed in the internal
little
Ontario, Mitchell
Hepburn, the stormy petrel of
Canadian politics but nevertheless
taught hiirp in four wellissues and the rate hardened to
a strong and able leader, has just
Constitution provides specifically will be based—as I have said—on known epigrams:
He whom the
10% discount. The Canadian dol¬
made
a
that "the powers not delegated to the reports of the Committees of gods
public statement.
He,
would destroy, they first
lar was also in demand in the
the United States by the Constitu- the National Association of Man¬ drive mad with
power. The mills
^free" market for year-end remition nor prohibited by it to the ufacturers working in close co¬ of God
grind slowly, but they
Furthermore, there are
states, are reserved to the states operation with the constituent or¬ grind exceeding small. The bee Colonel Drew the Ontario Pro- itances'
in £rowinS
indications of capital
respectively or to the people." ganizations of the National Indus¬ fertilizes 'the flower it robs. When erosive Conservative leader
As the late Justice Brandeis said: trial Council. I am convinced that it is dark
enough we can see the reopening in London a provincial,
"The makers of the Constitution. state, local and national manufac¬ starsc.
representative's office which he tl0n Wlth lndustrial enterprises.
'
As already mentioned, the mar¬
In the darkness and confusion himself had elosed. He also depre¬
conferred, as against the gov¬ turing trade associations, without
ket tone as a whole has improved
cated
the fears of the old-line
ernment, the right to be let alone, interfering with or detracting in that
now
envelops
the
whole
as
we
approach the end of the
the most comprehensive of rights any way from their own
activities, world, in the poignant personal parties as to the strength of the year, and if the normal reinvest¬
CCF challenge, and intimated that
and the right most valued by civ¬ can help achieve a broad program grief of our
mounting casualty
ment demand makes its appear¬
ilized men." I leave it to you to for- private competitive business lists, we can see. the same stars against a solid front it stood not
ance
in
January, this, coupled
the slightest chance of success.
say to what extent in your own and American liberty, that will in the heavens that guided the
with the diminished supply of ex¬
business
that
Turning to financial matters, it
halcyon situation give a thrill of satisfaction to Pilgrims of New England and the
ternal bonds available in Canada,
was interesting to read the Budget
still exists!
every
manufacturer
for
paving planters of Virginia across the
should lead to higher prices gen¬
There,
in a nutshell,
is the secured his own salvation through stormy wdstes of the North At¬ Address of Premier Stuart Garson
erally.
of the Province of Manitoba. Since
mechanism by which our fore¬ the vision
of the
organizations lantic 300 years ago.
In fact, at
the time of the depression and
fathers sought to harmonize the that he supports.
In. fact, with this
very
moment
those
same
extensive
will of the majority with the per¬ the public now more favorable to stars are
drought in the early To Form R.
guiding the navigators
sonal
rights of the individual. business than in years, and a peo¬ of a thousand ships and planes '30s, Manitoba has followed the
Mbh, freedom and opportunity for ple weary of arrested progress, of carrying our flag on all the seven straight and narrow path of finan¬ Guarniery Co. 1
Tenth Amendment to-the Federal
Competitive Business."1 Such leg¬
islative suggestions as are offered
epitomizes the lessons that history
has"
?S1 »nShAf Xf^^T
^TwUh'ifndusteia" prtSST"
..
.
.
•
.
Y.;
"
"|w 'ah'#;jrocceedin^ generations
Jjenxf f'dh, how
thatJ nrechanism
b&sed
a
—
meticulous
on
de-
mechanism
analysis
pf
all
previous'attempts at self-gov¬
ernment in the world's history; a
mechanism so ingenious, so care¬
fully
organized,
accurately
so
compensated against human va¬
garies and lust for power, that it
led Gladstone tp say that the Con¬
stitution was "the greatest instru¬
of
ment
off
at
government
ever
struck
given time by the hand
a
and brain of man."
tion of its basic
The preserva¬
principles is just
essential to the continuation of
as
the
private
of
system
competitive business
this country, as the
maintenance
tellectual
that
So
the
of
and
the
spiritual
Constitution
which
carry
freedom
and
the truths
post-war
depend, to the mind and
progress
heart
freedom
guarantees.
here today is organized to
help management
on
political;1 in¬
the Committee which f rep¬
resent
of
manufacturer
every
in
America.
with
Working in cooperation
the
business
organizations
affiliated
dustrial
with
costly
tampering
with
the
Council,
National
our
economic
seas.
Likewise, the same religious
philosophic principles that
cial
orthodoxy
fully
and
has
PHILADELPHIA;
success¬
furthering this program for
ter
to
firm
through its own
directed the minds and hearts of efforts, to the extent that it was
able recently to refinance a ma¬
the wise
men
who
set up
the
American Republic are still there turing issue on a basis equivalent
well we safeguard verities, it would be
if
industry
highest
were
the
unthinkable
not
degree
to
of
achieve
unity in
a bet¬
America.
To
is,
sum
first,
That
Managements job
up:
devise
to
has
been
program must
a
program.
done.
That
be publicized
now
to the American people and their
representatives
sell
it
in
Congress.
effectively,
To
management
must understand the
the American
principles of
Republic; apply the
political and ethical philosophy
which
of
it
is
based
to
the
on
every-day affairs of- busi¬
ness; be articulate in the • inter*
pretation of those principlesvlto
public;
mental
test
every
stars
make for
better
and
the true
on
through
the
and
course
to
murk
apathy.
of
our
Only
by
to
emerged,
that
Quebec
the
which
was
Province
able to obtain
the
following them
sweeping
reach: of
an
leashed spirit, the sounding
(xfl
can
force
in national
vincial
politics,
well
We
Business activity in the State of
California
during; November
was
255.6% of the 1935-39 average,
In¬
who
came
new
continent
to
the
to
shores
escape
of
the
November,
a
revised
re¬
H.
Guarniery. Mr. R. Y. Guarniery
.
,
f.
has been *c™e ****
individual
dividual
'member of the Philadelphia Exchange.
'■
'v$iime 15
-.mi
.
1942,
the index
Priced to
according
to
v i
1S50
•
yield
approx.
2.90%
E &
Company
64 WALL STREET, NEW YCFK 5
compiled by the Wells
•
Fargo
ii'i--
figure
men
this
Robert A. Guarniery, and Miriam
as
with
objective is
pro-
and offer:
in October and 225.2%
in
Guarniery,
Philadelphia Exchange member;
$70,000 gnijotn j of Winnipeg
City
' •bo'ii.i
compared
cour¬
of January 3rd. Part¬
a
also
own
•Y
Calif. Business Up
of 251.9%
least, emulate the faith and
age
that characterized the
as
formed
Exchange
unfettered soul!
pro¬
more
as
will' be
will be Robert Y.
ners
as
The
GuaWi'ery u& Co.,
thd'1'' Philadelphia
Exchange,
Building,
a
similar operation.
Mr7 Garsonj who is becoming
Y.
of
un¬
joy of
America; and, last but not
a
Stock
R.
with offices in the Stock
of
on
of
members
raised the
American management help se¬ point that the first item on any
Dominion
cure for all our
post-war planning
people the choic¬
agenda should be the full impleest
blessings of free men: the
mentation of Sirois Report recometernal quest of a venturing
mind,
finding and
Govterhl
from management, labor, agricul¬
ture
or
government,
that
will
us
ignorance
proposal
against fithose
basic concepts; support every constructive move, whether it springs
ductive
keep
freedom,
if
we
20th
century
Americans will but seek out those
conduct
the
the
and
Bank
&
Union
Trust. Co.,
WHitefcill 3-1374
'
to
imbue .business
men
generally
ligious, intellectual, economic and
l
0.
San Francisco.'
±1
THE COMMERCIAL &
2642
jectives.
' ■
Is the Amount of Pension at Re¬
tirement
to
Be
Related to the
Employees7 Trusts"
(Continued from page 2631)
that
analyze the tax statutes
we
"Employees' Trusts"
plans, pension
term
The
pension
plans
profit-sharing
trusts,
and
profit-sharing trusts, as the ex¬
pression is used in the Internal
Revenue Code and the Revenue
1942.
of
Act
Throughout this article
until he obtains new Are we going to provide more
Will this be done pension for the man who has given
fixes a predetermined known cost
if no reserve is accumulated? You 40 years of service than for the against certain problems.
which obviously cannot happen if
will note that some of these prob¬ man who has given 30 years of
Ill
the contribution to the plan or
lems are the problems of industry, service?
Or is the objective to
Tax Status of Plans and Trusts trust is dependent upon profits.
regardless of reserve accumula¬ be that each man, at retirehient,
In a pension plan or trust the
—Section 165 (a) defines the es¬
tions while others can be made to after
any
reasonable period of
sentials
of a' valid pension
or objective is to produce a known
look like problems largely because
service, is to have a compensation
a reserve exists.
sufficient to sustain him?
In the profit-sharing trust or plan. After result, either by establishing fixed
cost on a payroll basis or purchas¬
What
Are
the Objectives of calculation of pension -benefits, these requisites are met, the plan,
or trust will be a tax-free entity,
ing a fixed benefit, with fluctuat¬
Business in the Creation of These should a distinction be drawn be¬
and
will
have the approval of ing cost over the years ahead. To
Plans?—Is the plan to be a reserve tween service rendered brior to
employee
frequent
made to plans or.
trusts. These words are not to be
used interchangeably.
The word against all of the situations which
may arise during the course of
"trust" connotes the existence of
employment, or is the plan to be
a trustee.
One of the essentials to
limited solely to a pure pension
the validity of a plan is that there
can be no
diversion of the trust program, which provides retire¬
references
for
are
Gther than the
purpose
any
thinking of ihe average man, al¬ that a profit-sharing plan must not
though it is a flexible method provide benefits capable of actu¬
available to industry for the ac¬ arial determination, because to do
cumulation of uncertain reserves so would be to create a plan that
Employee's Length of Service?—
employment?
applicable thereto.
includes
put aside in trust against a "rainy pensation of the individuals in¬
in
such
plan or trust.
day" will be regarded as little cluded
(p) further provides
more
than a tax device in the Section 23
ob¬
define, its
industry
dividual
the
service
if the individual remains
employment until retirement
providing a lower amount",
of pension for prior service than employer.
for future service, if such pension
Section 22 (b) 2 defines the tax¬
is to be based upon the salary
able, status of benefits under such
which the employee is receiving a trust or
plan to an employee or
at the time the pension plan is
beneficiary thereunder.
commenced.
This for the simple
purpose
cal installments as long as the
Or should an effort
accumulate a definite
fund lasts?
Concept of a j..e mac}e
in Industry(fund, coupled with a fixed guar-Certainly there can be no justi-, anfy which will assure certainty
fication for any plan unless it ac- |0f jncorne as long as the employee
complishes a genuine social or fiveS) after retirement?
If fixed
.economic
result.
No one will guaranties are involved related to,
quarrel with the desirability of or
continued life of the employee<
the necessity for a plan which will then most certainly annuity" conWhat Is
a
Proper
Program
Pension
permit business to accumulate reagainst the depreciation or
serves
its manpower
through superannu-
If such reserve
ation.
lated, what is to be
is accumu-
tracts, as issued by the life insurcompanies, should" be used,
ghouid these benefits stop with
the death of the employee after
ance
the retirement retirement,
or
should they involve
age?
We must recognize that this
will vary in different industries
and as between the sexes. Gener-
additional guaranties which will
proVide a remainder interest to
the beneficiary of such employee,
ally, men can, and should, retire
at ages 65 or 70, and yet m heavy
industry employees have rendered
jf jie |jves hut a short period after
retirement?
Either method can
>oe utilized both from a social
point of view and from a tax point
q£ view
although
services
valuable
beyond 70 years of s§o.
are
generany accepted
for women is 60
they
The
reth-emeni age
or
65 years, and
yet we know that these age limits
are unreasonable in certain types
own
.
that the
rw
rpmpm
? asodial SeSritv
*
ofogra
plan over the years to the retire¬
ment of each individual included
ment
service and future service,
try is permitted to set
tire cost of past years'
or
such cost in each of 10
tax
be
under the 70% require¬
participate if the plan
contributory. You may exclude
months
in
less than
week,
and
year,
a
less
work
who
a
minimum
cannot
ever,
You
years.
very
it
thus reduce its
current"and future
This method is in
10-year span and
future load to
five
service
can
only.
contrast to
method of payment
a
which undertakes to
period of service with
the company,
succeeding
This procedure can
helpful to industry be¬
can
fully liquidate its
liability for prior service over a
eliminate those who have not had
a
on
years.
cause
than
you
services
lump-sum basis. But tax deduc¬
tion thereof is limited to 10% of
ment must
hours
indus¬
up'the en¬
a
eligible
employees
there is to be a
between past years'
purposes
separation
thereto and at least 80% of those
20
If for cost and payr
thereunder.
of distributing the prin¬
their benefi¬
ciaries, and cannot be diverted for
other purposes.
It must include
70%
of .the employees eligible
is
to
properly the cost of the
amortize
created for the sole
employees
such
Unquestion¬
retirement.
ably such contributions would be
amortize both
and future service over a
period remaining to retirement
for each individual included in
past
which period, how¬
be more than five
may
make certain
classifications of employees so
to
the
as
include only those
.
will not result in an eventual de¬
for
mand
wage
increases
rules
stabilization
liberalized?
If,
employer
u
Pension9
ditional payments are necessary
a
plan.
The regulations pro¬
vide that liquidation of liability
in a salary in a period less than 10 years is
psychologically sound, and in the.
group or clerical group as distin¬
subject to the Commissioner's ap¬
long run would serve to give the
guished from those who are paid proval, and undoubtedly the pur¬
employee a feeling of indepen¬ on an
hourly/ rate basis in the pose of this provision is to prevent
dence
rather
than
dependence.
shop. You may set up other clas¬ an
effective
discrimination
in
But, as a practical, matter, can
sifications/ siibject to approval by favor of certain individuals if the
industry today add another de¬
th4
Commissioner
of" Internal
plans is discontinued.
duction to the already; lengthy lisi.
Revehue.
But in any and all of
In
a
of, deductions which properly are
profit-sharing plan, you
these,classifications you must not
may recall that deductibility was
being taken from the weekly pay. discriminate in favor of
officers,
limited to 15% of the aggregate
envelope?
With deductions for
stockholders, higher compensated
Social
Security payments, War
compensation of the individuals
employees, or persons in supervi¬
Bond
included in such plan or trust.
purchases,
hospitalization,
sory! positions. Nor, may you.dis¬
There is no such percentage limit
withholding taxes, city, wage taxes
criminate in favor of those same
in
certain communities and, in
applicable to a pension plan or
four groups of "devils," either in
some
cases, union dues, can. any
trust, but rather the restriction
contributions made in their be¬
additional
substantial
contribu¬
that the cost of the plan must be
half or benefits to be received by
a
reasonable and necessary busi¬
tions be made by employees wnich
his
the
'
w
..
for
However, industry is permitted to
exceed 5% to the extent that ad¬
cipal, and income of the fund to
he employees included thereunder
and their beneficiaries.
It must
be for the exclusive
benefit of
to the ef^s Be?—Should they represent should there be contribution by
the employee?
It is salutary for
extent applicable, and with some,
mere accumulation of funds
the employee to share in Jhe re¬
comment
on
the
tax changes over a period of time, with the
which may be anticipated.
promise of distribution in periodi- sponsibility of creating'a fund for,
1
Essentials
thereunder, no prior approval of.
cost or formula need be obtained.
Valid Plan Under Section 165 (a)?
—It must be
the tax statutes
*'■.
the
Are
What
a pen¬
plan or trust does not exceed
5% of the aggregate compensa¬
tion of the individuals included
sion
Section, 23 (p) defines the ex¬
tent to which the cost of such plan
or trust' will be deductible by an
merit in
cost of
the extent that the
Department.
the Treasury
plan,
subsequent
rendered
Mathematically, there is
thereto?
ment pay
in
the
of
commencement
and
protection of the employee or his
Obviously, a pure pension
beneficiary.
If assets are set up age?
plan requires less accumulation
under a plan, who will hold title
than a plan with broad benefits,
thereto?
If the corporation re¬
and we must be careful in advis¬ reason that the pension for past
tains it there is the possibility of
service will be based upon the,
abuse.
If title is given to the ing industry that, in creating such
a
plan, they are not misled by highest salary that the man has
employee there is the possibility
received over the period of prior
of conversion without conformity objectives which they would not
undertake in years of lower cor¬ service, whereas if the plan had
with the plan.
In many cases the
porate earnings and lower tax begun years before, pension at a
best procedure is to create a trust
brackets.
higher rate would have been based;
with the appointment of a trustee,
From a tax point of view, the upon, lower, salary.
Payments for
and the creation of a trust instru¬
law and regulations are liberal overtime and paypients of bonus
ment, with title vested in the
in
their taxr treatment of these should never be used in the cal¬
trustee, which procedure avoids
culation of pension benefits.,
By
either
difficulty.. However, the plans. All of these benefits can
be provided on a favorable tax their very names, such payments,
law does not go so far as to insist
are
are
earmarked as extraordi¬
basis, and the Internal Revenue
upon a trust, and plans of various
Code has been amended specifi¬ nary, unusual payments, and cer¬
types, including group annuities,
cally to provide, that provisions tainly pensions should be based
can properly be set up without the.
can be made for the beneficiaries
only upon normal earnings.
necessity for a trustee.
of empl03'ees as well as for the
How
Should the Cost of the
The purpose of this paper is to
Plan Be Defrayed?—Should it all
employees themselves. •
present briefly the characteristics
be
borne
by the employer, or
What Should the Pension Ben
of sound Employees' Trusts, with
reference to
Thursday, December 30, 1943
FINANCIAL CHRONICLE
on
pays
are
when
lifted
or
the other hand,
the entire cost.
might it not be adding an addi¬
tional load to payroll which will
present
difficulties
competitively
industry which has no
them.. /
This section of the law provides
it .is
that
not
a
make the benefit
the salary
not,
discrimination
a
of
Social
exclude
and
in
proportionate to
to
include
below
such
plan
a
are
based
upon
involv¬
ing proper credits or discount for
mortality, turnover, excessive in¬
compensation in
Security limits
those
expense, and, further, that
rate-making factors included
sound, actuarial principles
received, and that it is
those* receiving
excess
ness
the
discrimination to
terest,
Can
such
etc.
Be
There
Both
a
Profit-
probably all "of £ ^
Sharing Plan or Trust and a Pen¬
'
of our national
limits.
them are beyond the limits which
+
u
national such plan? Likewise, might it not The Regulations issued July 9, sion Plan or Trust?—If the same
legislation cannot be questioned,
present too heavy a load, visual¬
a
certain social philosophy indi¬ at least as far as old
age benefits
1943% prescribe a series of tests employee is not included in both
izing it for what it is—deferred
cates is the period for individuals are concerned.
for the integration of private plan plans, each plan can operate with¬
Industry will be
compensation?
■' yy.
But
to comnienfce to enjoy a fuller life. asked to contribute, and contrib¬
benefits with Social Security ben¬ out reference to the other.
and
industry
of
like
with
■
_
If the
mined
retirement
by
age
is deter¬
the requirements of a
particular industry, an income
••
life should then be
such
such
for
guaranteed to
toward the cost of
Social Security
and therefore both the
heavily,
ute
maintaining
orogram,
and
benefits
the
costs of the So¬
Provision for
retirement income on a mod-
must be
considered and integrated when a
basis
private'pension program is being
employee.
cial
Security
program
'
est,
'
proper
and reasonable
Profit-Sharing Plans differ from
pension plans in their objectives'.
A profit-sharing plan is one, as
the name implies, that endeavors
to
distribute, or place in trust for
later distribution, a share of1 the
responsibility of arranged. The benefits to be given
profits earned by the employees
management in business.
How¬ to an employee upon retirement
who contributed toward such prof¬
a
ever,
the mere accumulation of under
private
pension
plan
its.
In its simplest form, it rep¬
reserves
for this purpose lends should be reasonable and conserv¬
resents an accumulation of funds,
itself to, the development of sup¬ ative.
built out of profits. It can promise
plementary thoughts or ideas.
If
IIovv Are Reasonable and Con¬
is
the
proper
the individual
to the
employee dies prior
should the
accumulated be given to
retirement age,
reserve
his beneficiaries?
The real ques¬
known
no
servative
Pension
Determined?—Is
Benefits
the
to
Be
amount
of
pension to be predicated upon the
salary which the indi¬
tion is, however, does a respon¬
vidual is receiving at the time of
sibility for such payment exist ■retirement? ' Or should it be pred¬
upon management?
If the indi¬ icated-:upon the average earnings
vidual employee becomes totallyj
<o£>-the individual over the period
wage
or
for,
or
guaranteed
from
year
of, an
and1 amount
character
one
affords
centive
so
results
obviously, profits are
uncertain
that
But
it
the
to
profits -1
he-may participate therein!
may
be questioned ; that
such incentive
create
may
be destroyed
permanently disabled while in' of his effort? It is human nature
if'distribution under the Trust is
the course of employment, should
to raise the standard of living as
long delayed and related to such
an accumulated reserve be utilized
income increases; and the average
distant, unreal happenings, in the
to relieve the economic problems
man
retires, theoretically, when thinking of the average person, as
of such employee?
Would man¬
he has reached his highest earning death, disability and old age.
To
agement make provision for Such
the average person profit-sharing
employee out of current funds if power. If pensions are predicated
and
no
reserves
lated?
If the
through
no
were
being accumu¬
employee is laid off,
fault of his own,
provide some form
to tide over the
should industry
of
severance
pay
upon
average,
standard
Either
it
may
of
earnings,
living
method may
a
must
lower
Result.
be used, and
be well to have
each in¬
means
a
1943,
a
.
,
the
entire
current
year;
year's
and
thereof will
be
a
distribution
of
profits
in
cash
this
To
What
Extent Are
the Con¬
the
question one Benefits, Taxable to an Employee
must5 refer to Section 23 (p) of or .His Beneficiary?—If the plan
the Internal Revenue Code.
We ! is a valid plan under Sectionfind
there that
distinctions are 165 (a), and the contributions are
drawn between pension plans and deductible to the corporation un¬
trusts and profit-sharing plans and der Section 23 (p), the contribu¬
trusts. With reference to a profit- tions to the plan or trust will, not
be taxable to the employee. = How¬
sharing plan or trust, the primary
rule
be
is that
the cost thereof
will
such a plan is
proper and reasonable
deductible, if
otherwise
the
experience; alone will
such
accumulation
ceed
tell whether a profit
cluded thereunder.
tributions to
a
Plan or Trust, or
.•'•To' determine this
a
provided that
amount
contributed .toward
a plan or trust does not ex¬
business
this
cost
deductible tiem of expense to the
to the next.
It
employer.
individual the in-"'
work to
to
is, provided that, after if the same employee is included
plan to be valid must meet! in both plans the entire cost of
the requirements of the Code on j both plans must not exceed 25%
at least one day for each quarter of the aggregate compensation of
of the taxable year. These limits the employees included thereun¬
If excess amounts are paid
Of a valid plan apply uniformly ! der.
to
pension
and
profit-sharing! which are not deductible in the
plans, and trusts.
If a plan or current year such excess amounts
trust meets all of these require- j can be carried into the succeeding
year,
which excess, when
ments, it is repeated that such { tax
plan or trust is in itself a non- j taken together with the contribu¬
tion in each succeeding year, may
taxable entity.
But the approval j
of a valid plan by the Treasury [ not exceed 30% of the aggregate
Department does not mean that compensation of the employees in¬
It
efits.,
; -yv.-v.,
ii
this
15-%
expense,
of the
aggregate com¬
ever,
the
when the employee receives
thereunder they be¬
benefits
come
taxable income in the year
in which received.
wise
death
be
of
This will like¬
true, in the event of the
an
ments to his
employee, with pay¬
beneficiary. If, how-
Volume
the
-ever,
Section
the
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4242
158"
is invalid under
(a), but all rights to
plan
165
under
contributions
vested
the
plan
the
in
employee, the
corporation may deduct such con¬
tributions, but they are returnable
as taxable income by the employee
are
in the year in which the contribu¬
tions were made by the corpora¬
tion.
If
has
employee
an
con¬
N. Y. Court
Upholds Overtime Wage Payments
Suiting Service Worker
of the New York
Supreme Court ruled on Dec.. 23 that a building service worker
employed by a landlord whose tenants are engaged in production
of goods for interstate commerce could collect penalty damages equal
of each week
■
reach a certain figure
necessary for retirement purposes
at retirement age.
Is it desirable
to supplement the reserve in the
early years of the plan as to each
individual by supplementary death
benefits until the reserve reaches
adequate figure?
an
ulations it is clearly
if such
supplementary life insur¬
benefits
ance
In the Reg¬
provided that
in
included
additional
were
or
the
plan,
entailed
cost
to
added
pension
a
such
by
procedure could properly be de¬
ductible under the salary account
of the individual
employee in¬
since, in effect, the
thereof would vest im¬
volved.
But
benefits
mediately
in
employee, the
considered
the
cost thereof should be
as
current
The
ruled
life
income
taxable
employee.
„
insurance
to the
,
"
Department has
Treasury
that such
;
,
increased cost of
in
a
valid pension
,plan may be paid by a corporation
on behalf of an employee through
"The
suit
which
on
the
ruled yesterday was not
with actual
which
was
state
court
Fair
concerned
a
lump
sum
24, 1938, to Aug. 30,
contended
-
13,
1942,
measured
highef
cash
by
can
refunds
al¬
which' ;are
which may have high turnover and
How
Should
a
Pension Plan
or
Profit-Sharing Plan Be Funded?—
Should
the
corporation endeavor
set up
and administer its own
fund through investments in the
to
hands of
a
trustee?
Or should it
Death benefits'canbe eliminated.
Such
a
contract
can
well
other
day
of
had lunch with the originator of the Stock
we
Price Trend Indicator occasionally referred to in this column.
last mention of this intriguing
purpose
of
a
Since
on
no
term indicator has
given two sig¬
nals, neither of which was report¬
For the
ed here at the time.
ord
wo
Oct.
18
them
report
short
the
term
rec¬
Low Priced
On
now.
indicator
Shares
turned
down; on Dec. 6 it turned
upward again and is presently in
position.
It
is,
of
the
course,
of
security
investors
longer
prices
in
A Class of Group Securities, Inc.
mu¬
*"
funds
tual
However,
ate
are
most
so-called
reactions
in
can
be
are
therefore
highly
GROUP#
enter the New Year,
as we
both
indicators point to
an
published
Timing
*
Securities
highly interesting discussion
is
of "1944 Outlook for Business and
Securities"
Dec.
23
Incorporated
63 wall street—new
york
up¬
ward trend.
*
Request
n? DISTRIBUTORS
market
disturbing. We
happy to report
that,
A
on
intermedi¬
bull
a
Prospectus
concerned.
is
presented in the
number of Investment
in
given
The
National
Corp. and
this issue o£
by
Research
&
full
in
"Chronicle," starting
on page
2630 and continued below:
New
1944 Outlook For Business And Securities
pending the Appellate Di¬
(Continued from page 2630)
other, 'employees paid by produce in the' neighborhood of and will start the new year with
your petitioner who may institute $2,000,000,000 instead of the $10,- the Fourth War Loan of $14,000,suit if this court should decide the
500,000,000 originally asked by the 000,000.
instant case in favor of the plain¬
Since the Government is going
Treasury, and, except for cancel¬
'
Advisory Board on
Labor Relations, Inc., 12
Street,
tervene
the
serve
credit,
in¬
appreciable
lation of the earned income
"The Realty
East 41st
asking. permission
on
the
same
to
in¬
will
portance to petitioner's members,
building employees al¬
ready had sued or contemplated
increase
taxes
come
to
individual
any
extent.
grounds, said
question was one of 'vital im¬
hot
In
to
raising the excess profits tax
and lowering the exemp¬
95%
the pending tax bill
discriminate against
which does not require death pro¬
large/ corporations, such as rail¬
suit for overtime wages and pen¬
tection.
The contract has a cer¬
roads, utilities and industrial com¬
alties.'
"
;
"
tain
panies using the invested capital
rigidity, but,, nevertheless,
"in 1 affirming
the
Appellate base for calculating exemptions; it
may well answer the purposes of
Term decision, the majority ruling
burdens more heavily those that
a
company.
The individual con¬
of the Appellate Division reduced
were
not prosperous before the
tract
contains more benefits;
is
the
device
Sept. 9, there has been
change in the longer term trend which has now remained stead¬
fastly upward since April 28, 1942.
In
recent
months
the
short^
1
—————
our
before the courts were being
tiff.'
the
Board.
in salary or wage
Co.
r
many
available under certain conditions.
crease
Insurance
208 So. La Salle Street (4)
-
Where Do We Go From Here?
The
vision decisioil an'd that There are
be bet¬
of
Life
&
CHICAGO
10 Post Office Square (9)
-
York said that many similar cases
held up
in full
reason
friend of the court, the Mu¬
a
now
employee, such in¬
does not
require the approval of the Treas¬
ury Department or the War Labor
paid to such
Supreme Court.
Asking permission to intervene
tual
■
otherwise
overtime
a
BOSTON
(14)
Investment Trusts
that
1
request
uppn
Broadway, New York (5)
LOS ANGELES
634 S. Spring Street
trend
as
1940.
that
120
^
^
which
'
though his employer had paid him
Nov.
SERIES
Prospectuses
with
the
"Through his attorney, Max R.
Simon, of 225 West 34th, Street,
on
INTERNATIONAL
NATIONAL SECURITIES & RESEARCH CORPORATION
torney's fees, but the decision was
reversed by the Appellate Term of
ings Bank. Mr. O'Neil was em¬
ployed as a night watchman from
ter
compensation
Act.
the
claim for penalty damages and at¬
is operated by the Brooklyn Sav¬
The effect of turnover
the
Standards
under,
-The Municipal Court denied the
night watchman in the building at
Fourth Avenue. The building
$423.16
SERIES
FIRST MUTUAL TRUST FUND
term
443
salary account and to the extent
of
Labor
came
for interstate commerce.
action, the first of its type
to reach the Appellate Division,
began with a suit in Municipal
Court by
William J. O'Neil, a
O'Neil
COMMON
STOCK SERIES
the full
by
"The
that such cost does not exceed
5%
commerce
wages due the
Although the em¬
watchman was made soon after
ployer paid the overtime, the rul¬
the Supreme Court's decision, not¬
ing of the court dealt with the
withstanding its belief that ten¬
failure to pay overtime at the end
ants in its building were not en¬
of each work period instead of
gaged in the production of goods
making payment in a lump sum.
Mr.
STOCK
LOW-PRICED
Brooklyn Savings Bank
maintained that an adjustment of
the .employer.
Oct.
BOND SERIES
"The
payment of overtime,
paid in
Securities Series
PREFERRED
,
.
to
SERIES
LOW-PRICED
if the overtime was not paid at the end
work
or
INCOME
SERIES
By a 3 to 2 decision, the Appellate Division
period.
tributed toward the cost of the
According to the New York^
plan, the benefits, when paid to "Herald Tribune" of Dec. 24, the settlement for all overtime wages
him, are taxed under the annuity
decision, if upheld by the higher earned during the period of his
rule.
This rule provides that the
courts* will involve about $25,- employment, he was entitled to
income received by the beneficiary
000,000 throughout the city includ¬ an equal amount in damages, plus
shall be free from tax to the ex¬
ing $12,000,000 in Manhattan, in attorney's fees, because his' em¬
tent that it exceeds 3%
of the
outstanding claims by building ployer failed to pay the overtime
aggregate contributions made by service
employees for overtime at the end of each week.
the employee until the amount of
"Mr. O'Neil admitted he signed
wages
and penalties under the
such tax-free income represents
Fair Labor Standards Act of 1938. a receipt for the $423.16 releasing
repayment to the employee of his
The justices who handed down his employer from further claims,
aggregate contributions. Thereaf¬ the
majority decision were Irwin but held that his' release did not
ter the entire income is taxable as
Untermyer, Edward S. Dore and bar him from instituting a claim
received.
If an employee severs
for double damages. The conten¬
Alfred H. Townley.
;
hjs employment and receives the
As to the court's findings, the tion Mr. Simon raised in court was
proceeds in trust for him, and if "Herald Tribune" said:
that the money was not paid as
such proceeds are paid to him
"In the decision, which upheld it'became due.
within a taxable year, they may
"Mr. Simon argued that an em¬
a previous ruling by the Appellate
be treated as a long-term capital
Term of the Supreme Court, the ployee was entitled to weekly pay¬
gain.
■' "
ments of overtime as earned, under
Appellate Division further held,
Can a Valid Pension Plan In¬
that a claim for penalty damages a United States Supreme Court
clude Therein Supplementary Life
may be prosecuted even if a for¬ ruling of JuneT, 1942, which held
that
Insurance Benefits as Such?—In a mal release has been
employees engaged in the
signed;.by
pure pension plan or trust a re¬
the employee, waiving all future maintenance of buildings where
tenants produced goods for inter¬
serve
is
accumulated over the claims.
' ■ /'
years
fOND
& Penalties In Case Of
to the-amount of overtime
2643
corporation
since many
tion schedule,
appears
to
be
some
a
heavy issuer of bonds for
time to come,
undoubtedly it
will keep the controls that enable
it to finance at low rates.
Evenv
change of Administration at
Washington would be unlikely to
a
alter this.
Corporations
,to
may
to
some
extent
desire to convert holdings of
Government securities into cash in
order to
help meet their post-war
for recon¬
struction
and
expansion.
Some
individuals probably will want to
capital
expenditures
counsel fees from $200 to $100.
war
and is more favorable for redeem war bonds in order to buy
"A dissenting opinion written by
companies that were prosperous goods and homes < or tide them¬
Justice Joseph M. Callahan and
selves over a periqcLof unemploy¬
during pre-war years and that use
•company
contracts
are
used,
concurred in by Justice Edward J.
ment.
Redemptions ape reported
the average earnings base of ex¬
'should 'they be individual connow to be 25%
Qlennon .said in part: 'Under the
oLreeentuSales.
emption. The bill contains a pro¬
'tradts}br group annuity contracts?
construction
now
proposed, no vision
requiring that the authori¬
should such contracts issued
VI.
Agriculture!
employer would be safe unless he ties in carrying out renegotiation
by1 insurance companies contain
decided correctly and on each cur¬
In the last two years farmers'
take into consideraiton "whether
supplementary life insurance ben¬
rent pay day the precise amount
income lias almost doubled, but
Conclusion
•
the
profits remaining after the
efits?
of compensation due, despite all
the rate of increase will not be
: If corporations will examine in¬
payment of estimated Federal in¬
Much has been written and much
the conflicting
issues that fre¬ come and excess profits taxes will continued next year. Present price
has been said about the relative to the economic and social aspects
quently
arise
affecting
such be excessive." Heavy excess prof¬ trends and the announced agripension
and
profit-sharing
merits of these different channels of
rights."'
its taxes have one negative virtue
(Continued on page 2644)
of investment.
It is my reasoned plans, and determine how such a
A court ruling affecting build¬
—a
cushion^' in decline in gross
opinion that if the corporation un¬ plan can encourage production, ing service workers was noted in
revenues or gross business volume.
dertakes
to
guarantee
lifetime diminish turnover, develop the our Dec. 16 issue, page 2439.
Although new higher taxes may
pensions to its employees it would loyalty of its employees, improve
be requested by the Treasury next
be wiser to use the contracts issued their efficiency and give to them
a
sense
of security; if corpora¬
year, it is probable that the pend¬
by insurance companies than to
China Takes Control
stone
tions will relate the problems of
ing hill represents wartime max¬
accept thq moral responsibility of
Of Foreign Exchange
ima.
On the other hand, little
making
good
any
deficiencies benefits and costs so as to build
themselves
reserves, against
China has taken full control of easing can be expected until the
which may exist over a period of for
'
the human problems which em¬ foreign exchange with dissolution entire war is over.
years in a. plan funded through
ployment brings; if corporations of the'Chinese Currency Stabili¬
investments.
V.
Money and Banking
Certificates of Participation in
will; be broadminded and, honest • zation Board, on which China, the
Trust Funds
In a profit-sharing plan, where
While some firming in shortin their, approach to these plans or United/ States and Great Britain
no
investing their capital as.follows:
guaranties are or can be in¬
term interest rates 'may: he^seen,
trusts, not only will they be■ re¬ yvere represented, it was reported
volved, the funds during the pe¬
no
marked change inHongrterm
warded
by
lessened
operating on Dec. 8" in an Associated Press
riod of accumulation should be
rates is anticipated in 1944.
The
B-l, 2, 3 and 4 in bonds
costs, more efficient personnel and account from Chungking, which
handled through investment chan¬
volume of private new capital fi¬
greater productiveness,; but also further stated:
Series
nels rather than annuity channels.
nancing should show an increase
the tax advantages will prove sig¬
."An official announcement said
K-l, 2 in Preferred Stocks
If annuities are to be used, in any
over 1943, w.ith a moderate expan¬
nificant.
exchange control passed from the sion in commercial loans, which
Series
event,
the
distinction between
The
future
of tax legislation board into the hands of a Chinese
group annuity and individual con¬
S-l, 2, 3, 4 in Common Stocks
might be accelerated to provide
tract
does not turn on relative governing Employees' Trusts can Exchange Control Commission on reconversion
money
after Ger¬
Prospectus may be obtained from
1.
Nine banks have been
be dictated by industry if it raises Dec.
costs, but rather upon the prin¬
your local investment dealc* or
many is defeated.
Bank earnings
its
sights and creates and im¬ authorized to deal in foreign ex¬ are .expected to show improve¬
ciples underlying the two types of
The Ke ystone Corp. of Boston
contracts and the benefits avail¬ proves pension plans for the good change, all of them Chinese ex- ment. Government bond flotations
50 CONGRESS STREET, BOSTON, MASS.
one,
the Hongkong and
able thereunder.
In a group an¬ which they will do rather than (cept
will not be as large as in 1943
the taxes they will save.
'Shanghai Banking Corporation."
nuity, mortality can be discounted.
purchase contracts issued by in¬
surance companies?
If insurance
flexible, and has a higher
Mortality is not dis¬
counted in advance, but the ef¬
fect
of
mortality experience ~ is
given to the corporation, rather
than discounted, and. reduces cost
through return of values at death.
more
initial cost.
;
■
Custodian Funds
,
•
—
.
,
:
..
•
I
•
_
increases in manufacturing output,
the most essential crops may be and should have similar developraised to assure the attainment of ments this time.
We have much
5% and 10%. The support price of
larger numbers of experienced industrial workers than before. We
abroad will maintain a high level have made more technological adof output even if the war is over.1 vances in materials, in methods
the
proposed production goals. De-
mands cf relief and rehabilitation
Subsidies, where they are allowed, 'and in new applications of physics
will go partly to farmers, partly and chemistry to industrial production.
to processors.
output
timates that 70% of current
Unemployment
is
going into the war effort, and
that the manpower that the 30% for civilian producsituation will improve in 1944, the ; tion is equivalent to 70% of the
We
expect
11935-39
olds end-
draft except for 18-year
Submission
.
John
to
tion, and Lend-Lease, now taking
7% of the total, will go on.
After thedefeat of Germany,
Lewis'
L.
miners has
for the coal
opened a veritable Pandora's box
of wage increase
demands: the; industrial
production will unsteel workers for
17 cents per doubtedly experience a sharp dehour,
threatened strike,
and un-
doubtedly more to come.
Labor's
objective is to maintain wartime
weekly wage levels, without reduction
in earnings by
shorter
In the wake of
post-war hours.
reconversion
shall have grow-
we
ing labor unrest—revival of jurisdictional disputes, fight for pres-
half
first
Distribution—The
ervation of wartime gains in wage
of
win
probably witness a de¬
rates, and demand for reductiom cline in sales volume of "retail
in hours of work.
But labor will trade
from
the
record-breaking
not occupy its present strong eco- high level this year of about $63,nomic
and
1944
the transition
periods.
Employin
position
post-war
000,000,000 (up 9V2% from 1942),
due
principally to
shortage of
ment in 1944 should decline about
?0ods
and probably from 3,000,000
10%
decline of smaller degree
a
dividends, which Should show
than moderate decline as
more
no
Industries
whole.
a
not
having
problems will
register the best results. Wartime
taxes and Government regulations
will not be lifted to
of
after
end
the
total
has been reached.
/
of
*
and speculative preferred
probably, continue to
move in line with equities.
Prog¬
ress
should be reflected in the
situations of many medium- and
lesser-grades, with further sub¬
stantial reductions in arrears in
the latter group.
retailers' shelves. Output
on
-)f civilian goods will increase, but
latter half of the year.
pay.
Construction
Reconversion
seen
and
slow
be
may
for
than
was
conversion from peace to war.
^llgain
Cancellations
as
of
It
has
year
feline will continue in 1944, when
is estimated, will be
of the 1943
^,800,000,000, 51%
war
Yolllme*
uJP1,er€Lwas a kidding ^shortage
war, the result of the
increase, and is already
way
to some extent; for
example, locomotive makers have
nAthpro-SfdnJa
of the 1930-4Q decade.
spre..sion
'c^c"iUU
rrasprf making innVo for inerpasprf
ceased mairinrf tanks fnn
of the 1930-40 decade,
dwellings unfit for
P r Evmg must be replaced,
production of locomotives, and tire
SY!varal
companies have stopped producing
tracer bullets and gas masks to
resume making tires.
Production
quotas for farm machinery in 1944
z
indicate considerable increase
fYnnnih^nnS1
which
War Industries should experi-
over
as
''Economic
the
in
war
Will
be
'^rmination
terminated
It
Straddle
of
/
the
war
relatively,
is difficulbfo; foresee to what ex-
penditures ■ for
•
cancelled.
war
tent and how
quickly such a drop
will be cushioned.by a resumption
of production of ^civilian goods. A
A
30me
we
sion
will
for
allocation
be
of
could cut back
production by
as
European War
our
much
munitions
as
80% and
still have enough to fight a fullscale war against Japan.
Business
IX.
Total volume of business in 1944
will probably
be about 10% below
1943.
Activity will decline under
impact of war contract cancella¬
tions
after
While;
Germany is
some
further
defeated.
rise in
costs
expected, controls to some ex¬
Production—Production
is
likely to gain much further.
not
Be¬
fore the end of the war with Ger¬
civilian
many,
up
increases
should
much of the slack, how¬
now
have
an
.
+u
i
™
JiL™ni
W'+r C°U~c
J
LnSrlage !
domestic crude of 500,000 barrels
i
i
,
should expect a temporary re¬
peace
and 145-160 in the upper.
continued hign level of
pect for
industrial plant
nearly 70% larger than when the
change
Administration
of
probably the end of the war
with Germany.
Favorable factors
are that the latter event is being
and
appreciable tax increases are to
be expected beyond the present
bill; and 1944 production, national
and business activity are
by labor, a probable in¬
the cost of living, and
demands
in
crease
temporary confusion at the end of
the European War with accelera¬
tion of unemployment.
We look
for the market in securities to be
pecially as declines in production
and employment may occur. In¬
civilian- supplies should
purchasing power before it
creasing
absorb
has
1944 Outlook for
inflationary ef¬
A
/" " •' A A ..
pronounced
fects.
(in comparison with
try
may
begin
.^e
first
oil
for
The railroads will be subject to
profits taxes
xcess
than
degree
in
to
1943
a
greater
and
the
at
ligher rate of 95% compared with
ie previous 90%; the
exemption
:
being reduced somewhat and
the
main they have exhausted
:eir carry-over credits. The roads
Ace
a
moderate decline in
earn-
controls
inflation
fore the
and
is
war
ther
rollbacks
War-born
for the dura-
ion, and earnings in 1944 are unikely to show much change.
the
problems,
excess
suffer
little
serious
and
Rubber
Meatpacking
Ships & Shipbldg.
Motion Pictures
Dairy Products
Office Equipment
barriers
to
Oil
*
Aircraft Mfg.
recovery
Apparel
dis¬
rehabilitation
of
service
and
The
recon¬
being
profits
category
from
temporary
in
will
re-
Mail Order
•
Machinery, Indus.
Companies
i
Paper
Grocery Chains
House Furnishings
A
Railroads
Can Mfg.
Steel & Iron
Insurance
Department Stores
/
Household Appl.
Cotton Textiles
-
and
Leather & Shoes
Telephone
Variety Chains
/;
Below
Undoubtedly most of the- pres¬
ent anti-inflation controls will re¬
in
Finance
Auto Parts
de¬
men
workers.
war
,
Utilities
AA v. •
,
Electrical Equip.
•
A
Automobiles
of surplus goods, continu¬
ation of price, ration and priority
mobilization
/Sugar
Average
posal
controls,
•
re¬
see
may
we
contract termination/
include:
degree for
some
a
Aluminum
long
results
and
from
a
Cement
.
"
Average
General Industry
Copper
Machine Tools
Wool .•
a-
..
Glass (Containers)
-
Building-
time, but a minimum of Govern¬
ment
activity and interference
with business will give the best
Glass (Flat)
•>
'
a/
a
change in Administration.
a
The study
anticipated
be
may
which the President re¬
that
is
the
both
Governments
British
Program To Publicize Posl-War
Ambitions Of American Enterprise
Sloan Outlines
U.
S.
have
Asserting that "expanding job
and
and
begun
organize orderly transition from
war to peace.
Bernard M. Baruch
was named to map the transition
to
gram
XII.
Bond
American
bonds
bonds
are
in
will
continub
favorable
tively
in
They
continue
and
excess
highly
upon
take
group
business
on
and
meetings from
Superimposed
0
must
leadership
broader philosophy
of
"eco¬
statesmanship," Mr. Sloan
management in the form of
!
nomic
j
said.
bonds
participation
its normal functions, Amer¬
ican
have
•
coast.
to
charge before income
speculative
labor
community
profits taxes. However,
a
a
possible
will '
to
propose
carry
into
every
coast
of higher earnings
enhanced by the fact that
interest is
is
catalyst
"The
sage
sioris,'
the advantage
coverage
recog¬
The, campaign will be carried in
newspaper and magazine adver¬
tising ,and go beyond it to include
racjio?.l?roadcasting, public discus-
attracting
to
Manufacturers,
A
buying by investors seeking more
income.
of
of American enterprise.
posi¬
Bonds continue
yields
the
of American in¬ profit. The foundation is confi¬
dustrial management, Mr, Sloan dence in the future of enterprise
saidvthat every avenue of commu¬ as determined by national eco¬
Without these in¬
nication would be utilized fully nomic policy.
to
bring
home
to
137,000,000 gredients there can be no jobs in
a free economy. This is
the mes¬
Americans the post-war ambitions
position, Their rela¬
liberal
of
which 6,000 business
ciation
tion, as the war has complicated
State
and
municipal
financial
Medium-Grade
//.%/'/.. '/aL''
"""
people.
Chairman
nized spokesman
Municipal
less favorable
General Motors Corpo¬
to carry that message to the
forces put into motion.
organiza¬ They result from a combination
of capital, management and op¬
tions
subscribe
and
which
is
sponsored by the National Asso¬ portunity.
to
Prices
market.
controlled
achieved
enterprise,",^1-
National^
Industrial Information Committee, definite
As
tinue close to current levels. Gov¬
a
American
Jr., Chairman of the Board of
ration, outlined on Dec. 20 a program
Iligli-Grade Bonds are at a cy¬
clical peak, * and continued high
prices show a narrow spread be¬
tween low yields and those of war
bonds.
1944 prices should con¬
ernment
era" which can be
bj( "a virile and expanding system of
fred P. Sloan,
early in 1944.
may come
opportunities are a social, political
economic essential in the post-war
only
here, and Lord Woolton, the Food
Minister, is
his counterpart in
Britain.
Congressional action on
Mr.
Baruch's reconversion pro¬
in
no
Rayon
Machinery, Agric.
Coal
sumption of the upward trend of
prices.
\. A vV-Y-..A -''A-' /A
barges will be lower.
ndustry faces
Gold
tinue at work, and
problems.
expecied
Printing & Pubg.
Railroad Equip.
Brewery & Dist.
Chemicals
Inflationary forces con¬
instead of fur¬
Food Products
Banks
and long be¬
over
1944, when the Price
Control Act will be renewed or
Drugs & Cosmetics
Baking & Milling
be¬
even
General Industry Average
Above
a
Air Transport
fore June 30,
Mggi(;buf :thei major portion will
•file';, out I of taxes and fixed
utput is
10-15% decline
a
profits)
Government control of post-war
inflation may be half-hearted
coun-
time.
importing
Major Industries
1943', assuming
in 1944 corporate
A
,
f
„r
version
ever.
We
activity due to
For the utilities continued record
tent will be eased.
take
•
,
ter the end of the
is
in
„
mate-
Army experts estimate that afwe
declines
.I daily by late 1944, and this
,
sible
level
tion
show
will
k
civilian
others
/•
Industries
kJw
economic factors
hppniic.i1?^c,+aan-i^t higher prices
PPP
5?
increasing de+1 dwmd*mS
production, a
method of timing reconversion to
peace without giving some companies competitive advantages
over
Prices
suddenly
If the war should end
,
econversion
major problem in reconver-
rials
Conclusion
indicated, the year 1944 will
be an eventful one, marked with
a
Presidential election and pos¬
As
increasingly discounted, no further
Stock
Common
XIV.
quested of the "accuracy of the
with cost-of-living index is to be ready
and consequently $3-4 billions of Japan.
/
/
•'•.
; :
in January,1",/(/
YLa / a
present $8-9, billion monthly exPeace Industries should do best,
A factor in optimistic) specula¬
contracts
war
a group.
XVI.
mand for civilian goods, and pros¬
main
nnrt
JoSIw
peimanent.
much as 100%. A/ence considerable earnings decline,
indigestion"
when J^ing place after Germany's deEurope ends is pre- feat> with aircraft and shipbuilddicted because $30-40 billions of
probably best placed until the
1943, possibly,
of
average
prolonged decline, for no doubt
has already been discounted
to a considerable extent. Our view
for 1944 is that the Dow-Jones
Industrail Average will range be¬
tween 110 and 125 in the lower
/ .he total, it
contracts
under
from expecting
performance from the
best group or
commodities in 1944
should be higher, favorable fac¬
tors being: high level of consumer
purchasing power, pent-up de¬
Inflation
for
Prices
expire.
This
difficult
more
companies
many
—
decline exceeding the 40%
a
to peace
war
one
superior
likely to continue at a high level,
although not quite up to 1943, Un¬
favorable factors are increased pay
from
unemployed at 3S it takes 3 to 9 months for most
Lower labor goods* to pass from the raw matecosts
will probably be
effected rial stage to consumers' hancts, not
mainly through reduction of the. much improvement in supply situwork-week and elimination or reation can be expected until the
VIII.
regardless of their groups, rather
than from attempting to select the
income
the end of the year.
Reconversion from
the
among
cession in stock prices, but not a
Commodity Prices-
XI.
to ,5,000,000 will be
overtime
will
stocks
ineffective, judging from the pres¬
ent apparent retreat by Congress
duction' of
high-
with
movement
price
bonds,
war
A! ■'
;
similarity
grade bonds; medium-grade, libral-yield
issues
are
likely to
show a like relation to comparable
much extent
until
High-grade preferred stocks
should continue to show
versification
cline. The Federal Reserve Board agricultural exports. Any weak¬
XV.
Selectivity
production index, now at 247, the ness in commodity prices would
We anticipate next year a highly characterized by wider interme¬
highest level oh record, may drop no doubt elicit Government sup¬
selective stock market. When the diate swings' and extreme selec¬
to 140-175 in thq ,transition period, port
■''■ ' //
■
market finishes discounting peace tivity.—From Dec. 23 "Investment
but just as its; rise /was not re¬
We do not fear; any consider¬
(at least in Europe), it will start Timing," issued by National Se¬
Tected in a comparable rise in able degree of inflation in 1944.
discounting the post-war boom. curities & Research Corp., New
stock prices we do not anticipate Price controls will restrain rising For the investor best results York City.
that its decline will exercise a price tendencies and the wartime
habit %of saving will continue, es¬
like depressing influence,
railroad brother-
the
now
hoods'
will be
The latter will
average.
ing. with the defeat of Germany,.'increase simultaneously with the
and war contract termination in- decline in war output. Some war
materials will continue in produc¬
creasing the labor supply.
demands
tion
serious reconversion
The Federal Reserve Board es¬
Labor—Wages-
VII,
15%, partly because of reduc¬
in military expenditures and
partly because of higher excess
profits taxes and lower exemp¬
tions, if enacted, for those using
the invested capital base.
There
to
dij
best-ap¬
obtainable from a
be
should
pearing medium-grade bonds, pre¬
ferred stocks and common stocks
Preferred Stock Prices
XIII.
Corporation profits -inf 19.44 prob¬
ably will show a decline of 10%,
in
probably prove extremely vulner¬
able in the transition period.
:
Earnings and Dividends
X.
(Continued from page 2643)
production program for war oroke out four years ago.
indicate
a
slignay higher (After the Civil War and World
income, probably between War I we had phenomenally rapid
arm
sales
consequent upon "war termination.
cultural
1944
• ..
industrial power
in
duction
Business
f
Thursday, December 30, 1943
THE COMMERCIAL & FINANCIAL CHRONICLE
2644
He continued:
"Jobs
are
a
result
,
of
.
:
certain
we
A.merican home." /
It is. hoped that American businessihen of all categories—retail¬
ers,
well
insurance
as
men,
bankers,
as
manufacturers—will par¬
personally
ticipate
the objectives
in
attaining
of this activity, Mr.
Sloan saidj
Associated
the
with
James
S.
Mr.
Adams,
Standard
Brands,
Chairman
cf the
Committee.
Sloan
of. activities
development
in
is
President
of
who
is
Inc.,
NIIC's Program
Volume 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4242
the
Discusses Dr. Anderson's Article On
of
permanence
condition
London
thus
the
sound
restored
exchange
What Investment
the
to
Such
market.
loan is the first essential to the
restoration of orderly trade con¬
Generation
a
Post-War Exchange
Stabilization
ditions
be
can
(Continued from
ernmental
channels
ernment.
directly
These
'reasons, for the
on
were
the gov¬
among
cember
that
2nd
the
issues sold generally to our
public than upon loans made di¬
rectly by our government, because
,
borrower's credit is
more
seri¬
,
so many
in which interests
forms,
and ideas
unpredic¬
tably, The looser type of organi¬
zation can by a continuous pro¬
cess of negotiation and effort settie problems on an overall or a
piece-meal basis, as each case
suggests. If a nation finds itself
isolated in its views, the implica¬
radically
change
a
upon
a
and
of De¬
semi-private
domestic organization be created
to suggest, recommend, and ap¬
prove or disapprove foreign loans
made in
this country. Another
reason
is
that foreign
govern¬
ments are' less likely to default
likely to be destroyed
governments take
suggestion in my
article in the "Chronicle"
2630)
by the creation of blocs, alliances,
and cliques. No such organization
is likely to meet the desires of
everybody in a • world in which
possible, because the odium of re¬
fusing loans to foreigners does
not then fall
page
tiveness is
whenever
will be such
tions
to
and
as
to
cause
it
think twice. If the action and
should
the views of such a nation
ously, damaged by default on a
private loan. Moreover, a recom¬
become
mendation
special alliances of force against
the absence
of any power on the part of any
nation or group of nations to dic¬
tate terms
directly through the
international1 organization would
tend to keep, it free of charges
of
dictatorship,
or
of
serving
tial
and
from '
some
influen¬
disinterested
body will
be often necessary, and always
helpful, to the sale of foreign
loans in this market at. present.
No governmental body can ever
recommend
any
investment,
ex¬
its own obligations, to the
public for obvious political con¬
cept
siderations.
Nevertheless,
the
Government can not be wholly
divorced from the problem, and
a guarantee of part of the interest
and
principal by our Treasury
will be necessary to make certain
foreign loans marketable through
private channels. Outright gifts
to foreign nations will have to be
financed wholly by the Govern¬
,
ment.
It is not impossible that the
type of international organization
which
finally evolves will be
different
now
more
from
those
consultative
body
to
it. On the other hand,
special interests. This would tend
to keep it from cracking up. This
sort of organization will probably
be found to be most practical, not
ciily with respect to foreign af¬
fairs generally, but with respect
to financial affairs in particular.
Especially will this be true, if the
larger nations, as well as the
smaller ones, make it a practice,
by custom rather than by law, to
solve as many problems through
the
use
of
the
organization as
possible. /•/ /■/ //' V'i /
■■■■ '
Dr.
very
which
are
proposed. It may prove to be
practical to establish an ac¬
international
tive
particularly offensive to
the rest of the world, it will lead
research
composed
and
of
various suborganizations or com¬
Anderson
makes
very
a
pertinent
reference
to
the
£1,000,000,000 of blocked sterling
balances in London. It
ident that
is, self ev¬
balance
condition of
a
in short accounts in London,
that
no
such
to
study
and
present
a
posed of representatives of gov¬
ernment,! finance, and business
short accounts in London
are
not
It
more
soundly made and
conditioned by direct negotiation
through a loose and decentralized
international
organization and a
strong domestic organization, than
by
indirection through a world
clearing organization and a world
RFC of uncertain scope.
This loan is by far the largest
likely: to be required for stabili¬
zation purposes. It could be made
by
Government, but there is
our
less
likelihood
loan
is
of
floated
default
a
publicly
the
effect
of
credit would be greater than the
effect of a default upon an inter¬
governmental
loan.
quickly,
England
default upon $11,000,000,000 owed
ability
cheaply.
The most recent emphasis was laid on this
characteristic of capitalistic America when Socialist Premier Stalin
at the Teheran conference lifted his glass to American
production
more
and said:
"Without American
have
never
won
production the United Nations could
the war,"
<$>—
Government after the last
our
market, and to free blocked bal¬
must
we
whether
not
or
next
inquire
loan
a
of
this
magnitude could be sold publicly
in
the
United
States.
not, unless the loan
teed
Probably
were guaran¬
in part
Treasury.
by the United States
Under the plan sug¬
gested in
my previous article, we
would, therefore, expect to see a
long term loan of $5,000,000,000
to England, bearing 3% to 3
interest, guaranteed to the extent
of
75%
by
the
of principal
United
and
States
interest
Treasury,
and
providing for full amortiza¬
by/ means of a cumulative
sinking fund similar to that used
on
the Argentine external loans
tion
floated in this country. Such a rate
should appear attractive both to
London and to
our
market under
duction
market and the world.
relatively low levels while the
production 1 index
sky-rocketed.
Stock prices, therefore, need hot
decline even though production
Obviously,
price level, the common
stocks
representing the owner¬
ship of this productive capacity
at
some
are
attractive to investors. Is such
in American business?
Stock
low
prices
levels
that' I
suggestion
made
at
.
The
problems
of reconversion
have been over-empha¬
Many industries have none
appear to
sized.
:
reihained
are
and,
.
since
The
the
of
outbreak
the
war.
average
from 1910 to 1914.
years
The
further
question remains:
business profits
rising! (kt6bk! •prices better
than
day
it "was
■
to
war production.
With recon¬
version, they do not have to learn
a
new business; they merely go
back to the old job.
Excess profits taxes will prob¬
ably be removed or greatly ame¬
liorated within
after the
back
Is the outlqbk for
and
to¬
into
a
a
reasonable time
is over.
war
The carry¬
provisions
of the
excess
profits tax will tend to keep earn¬
ings up, even though volume de¬
clines
temporarily.
Moreover,
v/
1939?
in
September,
earnings have been held to mod¬
//:'
//;\. erate levels by the excess profits
The
economic
background is tax, so that a reduction in vol¬
stronger today than it has been ume of business would decrease
for
many
years.
Shortages in the amount of taxes paid to the
durable goods and semi-durable
government
far
more
than
it
goods—locomotives and electric would
decrease
earnings
after
toasters, washing machines and taxes and available for stock¬
vacuum
cleaners, radios and re¬ holders.
frigerators, automobiles and type¬
In addition, inflation is such a
writers—have been building up
possibility that it dominates the
for two years, Supplies have been
speeches of our government offi¬
exhausted.
And all the time we
cials, our economic journals, and
have been building up purchas¬ our editorial
pages.
Already we
ing power through savings ac¬ have had some degree of infla-,
.
counts
this
and
bonds
war
deferred
to
make
effective
demand
when peace comes.
business
The financial
is
favorable
strong
to
a
several
—
situation
degree of
a
high
prosperity. :.;V(
for certain changes in
The political trend has been de¬
our
banking set-up. Under that
veloping favorably.
The various
set-up, the entire proceeds of such international
meetings
between
a
loan could be easily exported
the political leaders of the United
in gold, if desired, without affect¬
Nations have built up confidence
years
may.
have
but
tion.
How
ago
much
after
have
the
more
will
we
cannot
war
foretold with accuracy.
condition ofboth consumers and magnitude
the conditions assumed.
This suggestion also fits
prices have
curve of pro¬
capacity to produce for the home
.
ances,
^
—
Obviously, yvith the coming of reconversion, stock
peace,'t America will not lose her not followed up the
price* of industrial
stocks is practically the same as
war, but she did not default upon
the day the war began in Sep¬
any private loan. Assuming that
In the meantime,
at the end of the war, a loan of tember, 1939.
the fluctuations have been less
$4,000,000,000
to / $5,000,000,000
would still be adequate to restore percentage-wise than for any pe¬
riod since 1895,
except for the
balance in the London exchange
to
Program, Now?
generation,
the world
has been
amazed
at
to produce—more
things, better things, more
at relatively at all.
The industries that may
despite all the have them, are the industries thai
world-shaking events, stock prices astonished
everyone
with
Gic
have
been
remarkably* stable speed with which they converted
did
general British
on
America's
of
a price level with us now and is
if the
this the time to become a partner
in this
default,
because
country,
such
Sterling balances need to
be blocked, is a prerequisite of a
great fiee and natural Sterling, marketunder
constant
pressure
Variety
of
complex
problems. not
Such committees might be com¬ towards depreciation. So long as
mittees
recommended solutions of
throughout -the world:
2645
be
But if the
tot the efforts to con¬
any
guide, inflation
trol
it
on a
scale to justify making it an
are
important factor in investment
policy appears to be a reasonable
prospect.
The conventional view
that
is
stocks
common
offer
greater protection to the value of
agreement can be
principal when the purchasihg
from all nations which cared to made by the British to maintain ing our membef bank reserve ac¬
in the future of world trade and
power of the dollar declines than
send such representatives.
Such a fixed ratio of Sterling to gold counts, or in any way disturbing commerce.
/•/,;.
to the dollar, which will be our domestic money policy. If the
fixed-income, fixed-face-value se¬
an organization would not actively or
While production levels could
became re¬
curities.—From "The Parker Cor¬
engage in the clearing of foreign representative of the appropriate gold thus exported,
decline
temporarily with what¬
transactions or the extension of purchasing power parity of the distributed;
about
the
world ever unsettlement
may come with poration Letter."
loans. Having no other powers two currencies, and which will through
the
liquidation
of
than to make reports and recom¬ also have a reasonable chance to blocked
sterling balances
thus
mendations to which concurring endure. It is in our interest, as made possible, events would have
or
dissenting opinions might be well as4n the interest of orderly transpired whereby the financial
written by the representatives of world trade, that there should be position of many countries other
no
separate Sterling area and than England, would be improved
any nation who cared to write
them, and to provide a central Dollar area, but that Sterling and indirectly by this single loan. If,
Disclosure was made by the White House on Dec. 23 that Presi¬
place for discussion and negotia¬ the Dollar should be tied together in time, the gold tended to drift dent Roosevelt wants to abandon "New Deal" as a slogan and re¬
tion, it would be free of the an¬ permanently by a fixed ratio to back to us in exchange for our place it with "Win the War" or something akin to that.
This is
tagonisms and suspicions which gold. It was the unbalance of goods, We could, under the bank¬ learned from Washington Associated Press advices':(Dec; 23), which
in London,
and ing set-up suggested, absorb it,
arise' when the power to force short accounts
stated that Stephen Early, Presidential Secretary, confirmed that the
solutions is present. It would in pot a British plot to capture world also without disturbance to our President had told Delworth Lupton, of thq Cleveland'""Press,"
particular free the larger nations markets, which caused Britain to domestic. monetary situation.
Tuesday' (Dec.. 21)■■ that;■ "New®
1
ot the charge of trying to run the abandon gold, and Sterling to de¬
The practical reasons for the Deal" is outmoded and the phrase
Republican Chairman Spangier.
World.' Its influence would be preciate in terms of the Dollar in suggestion made several years "Win the War", or a like term however, issued this formal state¬
chiefly the collective moral in¬ the middle 1930s. One can scarcely ago and the
ment:
1
1 /<
should be substituted.
in
balance,
no
.
:
IffioseVelMo Bis
fluence of those who participate.
believe the British to be so naive
to suppose
depre¬
hand, committees
composed of representatives of the ciation of their currency, they can
diplomatic sphere and • Of the capture the markets of the world,
business, sphere have in the past for it is self evident that what is
accomplished
important
things. gained on one side of the ledger
Possibly they are capable of ac¬ by this process is lost on the other.
complishing more than a League No country ever became a great
of Nations, definite alliances, or exporting nation in this way. Dur¬
purely political and diplomatic ing the years of her best growth
negotiation without the admix¬ in the international trade, Great
ture of representatives of business, Britain was firmly on the gold
finance, and labor on their re¬ basis. Only under such condi¬
spective
committees On
which tions can foreign trade and in¬
On
the
as
other
vestment
that by
reach
mere
their
ultimate.
suggestion made re¬
cently grow clearer as the nature
of the problems and
underlying
conditions
with
faced becomes
imminent.; A
which
we
are
apparent and
further reason for
more
'"/' •'/"
The
orate
ton
Secretary would not elab¬
except to say that Mr. Lup¬
chatted
and
shake
for
forward
came
less
a
hand¬
than
a
the
For himself, Mr. Early
foreign exchange and bank¬ minute.
ing set-up suggested, lies in the commented that the phrase "New
need of ability to manage dom¬ Deal" was born back in the 1932
estic monetary conditions smooth¬ economic emergency and "it's now
'
ly and easily in the face of ex-r 1943."
;
The Democratic National Com¬
traordinary
foreign
trade
and
fiscal conditions, so that a. refund¬ mittee would not. comment on Mr.
ing of the domestic governmental Early's disclosure, although one
debt may be accomplished
readily
after the war.
officer there
expressed the belief
representation is appropriate.
the President's remark was not
It seems probable that this, loose, But such stability can. be brought
JAMES A. HOWE intended for publication: : »'■
about only by correcting; the :furti
cooperative type of international
From "the same presS"1 account
Greenwich, Conn.
we also quote:
organization, which seeks to set¬ damentals, which in this --pase December 21st, 1943
•
in'Obum/t;
:
tle problems by adequate joint means restoring balance betWOdh
Immediately, Harrisdh B/'&parig-,
the short liabilities and the short
study, negotiation, moral force
ler, Chairman of the Republican
To Change Firm Name
and the strength of world opinion, obligations of the London ,mar¬
National Committed, 'saw in ' the
will be likely to endure longer ket, and freeing blocked balances.
The firm name
of, de Saints suggestion an effort by the Chief
and to accomplish more than any This can be accomplished in any
Executive to unburden himself of
Phalle, van Heukelom & Co. will
overall government in which rep¬ short time only by a long term
a
"political load"'while running
such
•
•
.
.
resentatives
vote
according
to
preconceived system,, and
thereby exert the force of legal
compulsion. In the latter type of
organization, either the powers
some
will
will
loan from us, or extended
some
sort of
through
international organ¬
ization. If the loan is made direct¬
it can be conditioned
upon a return of Sterling to the
be so circumscribed that it full gold standard basis, and upon
be inenective, cr its effec¬ ,ether measures designed to assure
.
ly by
us,
be
changed
Phalle
1944.
ber
&
The
of the
to
Co.,
Andre
firm, which is
New
York
Saint-
de
effective
Jan,
a
1,
mem¬
Stock Ex¬
for
a
fourth term.
Senator
said it
the
term
different
change,
has
offices
at
Street; New York City.
25
Broad
ducted
(D., Wyo.)
good idea to scrap
O'Mahoney
was
a
because
conditions
are
now
and the "battle con¬
unuer
the New Deal ban¬
ner" has
the
"Can
The Associated Press added:
long .since been won.
his
change
leopard
spots?
Evidently Mr. Roosevelt
thinks'so when he tells the press
that he
to
wants
get away
from
the tattered emblem, New Deal.
"We have great sympathy for
him
his
in
record
the
of
desire
his
to
forget
Administration
the
for
11 years. It is quite a
political load for him to carry as
he and his palace guard fever¬
ishly conduct their campaign for
past
four mpre years in office,
"The American people
after
Pearl
Harbor
the day
adopted the
slogan, 'Win the War.' After two
years Mr. Roosevelt has caught up
with them, but the spots
main."
still
re¬
Senator
O'Mahoney, who has
disagreed with the President on
major domestic issues, par¬
ticularly the Supreme Court bat¬
tle, said it was a good idea to
scrap the phrase New Deal be¬
some
the circumstances which led
cause
its
adoption "brought about
legislative reforms which weresupported by an overwhelming
majority of the people, Republi¬
to
cans
as
well
as
Democrats."
enlightening, and shows how pur¬
poseful the framers were to put
Mexico-Its Economic
Mexico's financial house in
the
for
And Financial Policy
enabling
Banco de
use
(Continued from page 2634)
order
reckoning. The
act prescribes that the
Mexico, as trustee, may
day
of
NASD Markup And SEG Disclosure
Rules Destructive Measures
(Continued from first page)
the proceeds:
To retire any evidences of
the
the Mexican Government internal
4.50%. from 4.20%, the new Tejos
daily papers brought an interview
debt which this institution has in
with a financier from Los Angeles, to about 4.25%, while Hidalgos its
of
value
Cal.,
the
he advocated
to $1.
which
in
value of 3 pesos
continued
discussion
The
of
One
peso.
un¬
arguments.
it would be unwise
who believed
impossible to revalue the peso
comprised largely the business
or
elements, principally those inter¬
ested in banking and exports and
mini
for
which is
to 4.10%
rose
ostensible
The
Both
Those
abated—to be or not to be.
sides had good
a
rising
Centenarios
old
the
reason
to
par.
the
change in the mixture of the type
that
is
coin
of
all
the
facilities
given
of the Casa de Moneda were
the coining of silver and
to
over
fractional currency of which
there
painful shortage:
was a
U. S.
imports.
They said for one, that
the revaluation would cause to the
fine, at 0.843621400
$4.10 M.N. (pesos) for one
or
gold
to exceed its
and dollar balances
and surplus.
To which
holding the opposite belief
capital
those
portfolio;
(2)
To purchase
gold. For a while it sold bar
at $4,869.25 M.N. a kilo, to
change the price later to $5,466.67
M.N. a kilo of $4.10 M.N. a gold
ex¬
foreign currency;
acquiring other securities
foreign currency with
(c)
issued in
any
its
balance remaining which in
judgment .offers the neces¬
sary
guarantees.
the
Since
fiscal
position
of
direct bearing on its
a
position it might be well
Large purchases of gold are re¬
to mention that tax collections in
the
Government
could ported, for the most part for do¬ the first quarter of this year were
mestic account. Recently the price
easily absorb this loss, because in
more than 455 million pesos and
of
Centenarios
($50.-M.N.) had
reality after a few years the econ¬
the President, Mr. Avila M. Carisen to 4.90% against the paper
omy as a whole would be bene¬
macho, stated in his annual mes¬
fited to such an extent that this dollar, as it has been called, of
sage that if, in the second semes¬
loss would become a profit by rea¬ $4.85, with the smaller coins rising
in price proportionately. Ordinarily ter, the same amount is obtained,
son
of the increased amount of
it will total more than 900 /mil¬
U, S. dollars received for the same such a bidding for gold would be
lion pesos for the half year.
On
considered that qll the storm sig¬
peso trade balance, and in later
the other hand, it was published
nals were up; however, counter
years Mexico would be able to re¬
that the budget for the year would
measures were taken and referred
plenish its equipment at a much
be 900 million pesos or less than
lower peso cost.
Others arguing to later, which are extremely con¬ the
expected intake for one half
servative and sound.
In the last
against revaluation said it will
year. The President stated further
damage
industries,
because
of phase of the bidding up of prices that the Banco de Mexico retired
higher
exchange
rates Mexico the chief motive undoubtedly was this
year
157 million pesos of
would not be able to sell.
Their speculation for which the princi¬
Treasury certificates.
(1) psycho¬
thought was probably more of the pal reasons were:
It would seem, therefore, that
future than of the present, while logical and (2) that the Banco de
articles like food,
Mexico
for
while
a
selling
was
nothing but medio-Hidalgos ($5.M.N.) and for a while U. S. $5.00
rapidly and alarmingly mounting
cost of living.
However, in this
discussion
the
most
important
gold pieces, all of which was re¬
flected in the open market price
by the difference in costs,
honest and conservative dealers.
(b) acquiring evidence of debt
of Mexican corporations issued
financial
declining demand was expected
to
relieve the pressure
on
the
confused
foreign currency;
policy
a
be
prices- and size of the transactions by different dealers.
Unfair competition would immediately develop between the
Mexican external debt issued in
replied that as a matter of public
in non-essential
would
customers
scrupulous and honest dealers and the unscrupulous and
dishonest.
The natural differences in costs and prices that:
must exist in this business would be used to undermine the
Mexico has
peso.
foreign
change for the purpose of
(a) acquiring evidence of the
in
900
is
peso
its gold
Banco de Mexico losses in
(1)
The Banco de Mexico sells gold,
which
Thursday, December 30, 1943
CHRONICLE
THE COMMERCIAL & FINANCIAL
2646
the
aforementioned
measures
are
finan¬
ample evidence of a sound
cial and economic policy.
IIow Are Prices
It
in the
The
question
prices for goods of all kinds tend to be near
production. The reasons are, if prices are much
the costs of production, new producers and traders1
long
run
the costs of
above
will take up
the business in order to take advantage of the
opportunity to make profits and prices are soon driven down,
to costs of production by the increased volume and competi¬
tion io make sales.
If the prices are below the costs of pro¬
duction over any
ducers
long period of time the higher cost pro-:
driven out of business by
are
of business shrinks and
and
near
losses.
The volume
the competitive efforts are reduced
In this way prices tend to again stabilize
production for normal times. These con¬
of course, are constantly being upset by unknown
prices rise.
the costs of
developments
but nevertheless the tendency
remains for
asked,
often
is
Made?
simple and too well known to repeat but
too
seems
ditions
Silver
;
apply any. such bunglesome
over-the-counter securities market or any such gross spread limitations why did they
single out this particular business?
Why did they not treat
all business alike and apply similar price and cost disclosures
and gross spread limitations to the grain and cotton business,
to the grocery business,.the drug, jewelry, shoe and clothing
business?
It seems clear beyond a doubt that Congress •
never
intended any such bureaucratic destruction of free
enterprise in the over-the-counter capital markets.
If Congress had intended to
rules of price disclosure to the
<
prices to seek a level near costs.
The public reaps the bene¬
point to be considered is probably iays Banco de Mexico announced be after the war ceases when, fit of this increased efficiency and struggle to lower costs.1
bar gold at
that Mexico's great national pride that it would sell
Free competition is, therefore, in favor of the consumer
among other things, the U. S. A.
might be the deciding factor, re¬ 4.10%, which immediately brought
may
reverse
its
silver-buying because of this competitive - effort between producers to
membering
that originally
the open market quotations for the
policy.
,'V .■> '•
%
y,,.,; lower their costs and increase or maintain a desired ratio
ratio was 2 pesos to $1, or a peso large coins down to 4.40% or a
The
for
However, in the last few
gold.
what the situation
of Mexico will
,
(before de¬
U. S.
500
at
valued
valuation).
problem of the revaluation
it may develop, will
The
the peso,
of
be taken
of without any un¬
care
action
toward
solely
namely, the market.
to 6 pesos
peso rose
decline
to
the
by
appraisal of values,
of
consensus
and
little
a
Just as the
to $1 in 1939,
then
later,
to
its present level and of
which perhaps also the present
quotation
for gold
Centenarios
drop
to
to be an indication.
quite
certain
that the
may prove
is
It
that be in Mexico at the
time, fully realize that
is the best antidote
against
inflation;
therefore, its
policy. However, it must be real¬
ized that by far the greatest ma¬
jority of the population, it is safe
powers,
present
hard
money
has at predeliction for hard
to say,
money,
experience,
profiting.) by
particular for silver, as the
hoarding pf silyer-qoins shows.
and in
*
,
,
Immediately following came the
of the
extension
announcement
Agreement
of the Sta¬
made be¬
tween Mexico and the
U. S. A. and
for another two years
bilization
all talk of
a
present change in the
value subsided immediately.
Reverting to the announced pol¬
peso
icy of the Banco de Mexico to sell
the immediate consequence
lowering of quotations in
the outside market so that Hidal¬
gold,
was
a
could be bought for 4.04% or
than $35.-U. S.
gos
considerably less
an
ounce,
Bank
sold
i.e., when the Central
gold in a mixture lk
Hidalgos and Vz Aztecas. Then it
announced a new coin would
was
be
issued
in
place
containing
($50.-M.N.)
tenario
the same amount of gold
ing
Cen-
of the
but bear¬
the inscription "37 V2
gramos
The
How¬
de oro" instead of fifty pesos.
coins
new
are
called Tejos.
drop of 50 points,
is
of
September 30th shows out¬
Hidalgos and Cen¬
tenarios.
But when later it de¬
cided to issue nothing but Hidal¬
gos,
the
outside
of
gold
market
quotations in
took
a
the
big jump,
1,023
standing
million
pesos
422
million
pesos
and
notes
metallic currency,
combat this pressure
To
various
funds,
measures
taken:
as
in
in
would
seem
to depend
upon sev¬
profits.
fundamental
to be its monetary
use,
or
perhaps put more cor¬
rectly, the role which will be as¬
of idle signed to it upon any (expected)
international currency agreement
were
to be reached.
In addition it is
against
and well established principles
enterprise are different in the over-the-counter secur¬
business from other kinds of business, how do they:
of free
ities
differ?
•
,
Ovcr-the-Counter
be said
may
,
If these
The most important
eral factors.
deposits expected that there will be con¬
siderable demand from the Far
gradually raised to 33% in
the
Federal* District,
which
is East, chiefly China and India, for
silver
in
replenishment of its
Mexico City, and to 30% for the
monetary stocks, since it appears
country as a whole, with a penalty
that the initiation of the silver}f 1% per month.
2. Loan and investment port¬ buying policy as usual caused the
flow of their silver coins to the
folios of the banks were frozen as
U. S. A. * Then, of course, there is
of Oct, 31, 1942, which in the light
the demand for silver from in¬
of our experience of the period
dustry and the arts.
leading up to 1929 will decidedly
With regard to its place as a
lessen the danger of a frozen loan
medium of exchange there have
position when the inevitable day
been opinions voiced of the neces¬
of readjustment comes.
3. In order to syphon off excess sity of a bi-metallic system be¬
cause
the stock and the produc¬
deposits, the Government has au¬
tion of gold is held as not suffi¬
thorized the issue of 200 million
cient for world currency needs.;
pesos
of Defense Bonds, which
While this is probably true as far
are partly to be subscribed to by
as it goes, it wilLdepend to a very
banks
and financial
institutions
large extent, if and after interna¬
and partly by individuals.
How¬
tional
currency
agreements are
Reserves
1.
of
may
The
statement of the Banco de Mexico
Securities
Over-the-counter securities are the instruments repre¬
senting the capital ownership in corporate enterprises, large,
or small, private or public.
What determines the price of
these instruments?
Clearly it is the quality of the instru¬
This
ments.
In the
tors.
quality is affected by many varieties of fac¬
of bonds the quality of a Federal, State,
case
were
or
,
ever,
since the banks' investment
position is frozen, there is a limit
to the amount which they can ab¬
In
sorb.
the
mechanics
of
their
procedure
of
crediting War Loan account is not
placement,
our
The
followed.
ciera, the
Nacional
Finan-
Government sponsored
reached, how important
the need
metallic currency,
aside from International. Bank or
Central
Bank
reserves.
If
a
scheme
of
international settle¬
ments
or
clearings is adopted,
which seems quite probable, then
the need for any medium of ex¬
will
be
for
in
which
private
change will be greatly minimized
participates,
issues
the
and
reduced to its use as till
underwriter,
capital
bonds .to -the. selling
in„a
banks
money. In the event that the plan
way . ,yrhich ,-plight be called on
of an International Bank is put
consignment, for a certain selling
into operation, which appears very
period, against payment. Any un¬
sold portion at the expiration of certain, and which as seems neces¬
banks
price
been,
deposits.
making the mixture 75% Hidalgos
and 25% Tejos, causing a rise in
the
price of silver in the past
had its ups and downs, having
be said, no place,
until the U. S. Treasury buying
Circulation
totals
over
2,400
started its upward swing. Its fate
nillion pesos, in which, however,
as related to Mexico after the war
Is included bank
the
upon
has
Other Circulation
the issue of the Tejos,
the bank ceased issuing Aztecas,
ever,
;
new
requires a deposit of metallic
many and perhaps the
while majority of the nations who sub¬
scribe to this International Bank
period pan be returned or a
selling contract made.
The
receive
no
interest
sary,
reserve,
the bonds in their possession are
unsold,
merely
V%%
as
a
selling
to
commission.
The
ceeds
purpose
of
may
to which the pro¬
these bonds
can
be
ap¬
plied is extremely interesting and
find it necessary to
obtain
these
so
bare
After
cupboard may
reserves.
having done so the
be
"arrange"
that, for internal use
(Continued 011 page 2647)
municipal bond is determined by the interest rate, the
supply of the bonds available, their suitability for various
collateral purposes, the maturity dates and the capacity and
intention of the public authority to pay together with its
past reputation. It is not new to readers that U. S. Govern¬
ment bonds and bonds of the State of New York sell at a very
low
yield
or
at a very high price because of
their high qual¬
ity and the public confidence.
It is equally well kpown,
that the bonds of Mexico, Bolivia, Germany and even the
Province of Alberta sell at a much lower price or at a much
higher yield because these public authorities do not pro-,,
vide the quality and do not command the confidence of the,
public investor for the same reasons.
;
If we now turn to small size municipal issues, we find
that the bonds of a small local high school district which is
comparatively unknown and the size of whose bond issues,
relatively small, are equally high priced with our high-1
est grade government bonds where they have like quality
which maintains the confidence of the investor and these
is
bonds almost
always sell over-the counter.
The bonds of
private corporations may be classified in the same manner.1
The bonds of Standard Oil of New Jersey sell at a very high'
This is a large corporation, but on;
find that the bonds of a comparatively *
price relative to yield.
the other hand
we
small oil company
such
as
Superior Oil of California with a |
good reputation for quality sell at almost as high a price as;
those of the larger entity.
Clearly it is not size of the debtor-
quality of its instruments that largely determines;
of its obligations.
;
we examine the railroad
bond prices we still find,
but the
investor valuation
If
railroad bonds command very high prices and very
yields because of their security and very fine quality.1
the other hand there are the well known railroad bonds1
many
low
On
selling for 10, 20 or 30 cents on
the dollar of their par value
Volume
158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4242
and paying no interest. - Clearly it is again a case
and confidence known to the investor.
Now let's examine
Common sfock sells at
a
few stock issues.
of quality
(Continued from
General Electric
the only method open may be the
fiat money basis.
very
the years
ent
a
railroad with
Las
some
Stock.
a
vast debt and
plants producing
goods
war
doubts about the future income from the
'
nations
of
This brief
presentation
clear to the casual reader
seems
some
using
may
baser metals for
determined
common
American
<
to me adequate to make
of
they
establishment of
numerous
organization for
from
the
conditions
that
existed
a
decade
other section of the market?
the-counter
securities
tion
the
at the oppor¬
larger
Mexican
that
official
statistics
that
silver
in many
monetary
clear
that
in
any
organization which is finally es¬
tablished
will
be
the
function
recognized,
silver
of
thus
guaran¬
teeing its international use, which
necessarily signifies an increase
in the requirements for internal
use
of
reserves
as
States which
the
different
part of the
are
sys-
fpd which in turn will reflect
benefits to the nations of the
heTetof ore has totaled in:
ver
2-400,000
kil6s
-A-A_-2,600,000 kilos
probably reach
3,000,000 kilos
1.9.42.
•Aglinst
this
the
production
consump-
frtW
■
' .'i
V _'f; Total
■'
1.939
to another office and discloses it, he is giving to
'
s,
330,000,000
.
that dealer
over
fidence that this
•
and
confines
his
will make available- to such customer
a
vast amount of
308.000,000
less
Ai
*"347,000,000
a
v
•
■
.' Silver Coin
288,000,000
1941
1942
1943
AIA^AAa.AAAAA'A- 325,500,000
iZL.ALA.-..388,500,000
balance
coins,
business
exclusively to
a
period of years and the dealer has con¬
relationship will continue that such dealer
a-r-little
1941
The
Pesos
278.000,000
•___
1942
dealer
the
only
710 U. S.
demand
for
S.
an
of
silver
market
in
its
the
regards
as
hand and
one
the
faced
uncontrolled
since the
fine
of
the
appearance
and
as
silver for the
toward the
circulating
probable
cause
caused
the
by
down
and
coins.
stated,
An¬
supposed melting
export of silver
the
This
particularly
was
no¬
ticeable—in fact, it was painful—
in
the
markets where
a
small
shopkeeper more often than not
be obliged to run all
ovei;
would
the markets
one
it
it
as
to
obtain
change for
note. Even at the banks
peso
impossible to obtain frac¬
was
tional
often for
currency
one
little
as
Mr. Villasenor esti¬
peso.
mated that the
me¬
coin
march
hoarding of silver
have reached the total
may
of
200 million pesos.
This diffi¬
culty is gradually being alleviated
melting pot.
Suarez, the Secre¬
Mr. Eduardo
because
protect
the
turning
tary of the Treasury, said that the
Government is anxious to
reasons
of
hoarding in all
probability was the unbelievable
shortage of fractional currency
per
a
their
done to
consumption of
other
kilogram of
explains their dis¬
silver, which
dium
means
it
issue of paper pesos,
economize in the
grams
out
daily
the
Casa
80
de
Moneda
thousand
(1 million pieces)
tional
is
how
drastic
those
may
pesos
is
pesos
in frac¬
currency,
not
counting
and 50 centavo pieces.
For these
Mexico
the Banco de
reasons
.
;
constitutes
.
V-
.
nickel
and
copper
■'■
■
-Almost
350,000,000.
Here, -it might be added, in ad¬
to
to
(1)
prevent this exportation
an abuse; even
prohibit it if that should be¬
necessary.
In August an
tax of 45 centavos per
come
export
(net)
gram
was
put
which
contain
not
It
forbidding
pesos
per
manufactured
on
does
stones.
45
or
also
the
issued
export
kilo
silver
i
to
meet
in
the
this
increase
consumption and
in order to comply with its agree¬
ment made with the U. S. for the
sale of its silver, ordered a reduc¬
U.
S.
A. to
coinage of 20 cen¬
pieces in place of sil¬
Y;:
ver.
Inflation
After
the
and
War
Let-Down
silver
domestic
Govern¬
to authorize the
decree
a
Government,
tremendous
to request the
tavo bronze
precious
of
the
to
suspend its purchase of silver from
it; and
(2) to modify the monetary law
Mr.
coin.
When the Mexican
proposed
ment:
be, in
of
Eduardo
Suarez, Secretary
Treasury, stated recently
the
in
interview that examination
an
of
the
facts
that
reveals
Mexico
is not confronted with uncontrolable inflation.
While
of
course
the
20%
pre¬
tion in sales of its silver to domes¬
mium
tic consumers,
this created a ter¬
rific scarcity causing a rise in the
their
of silver in the uncon¬
trolled (black) market up to 87,
100 and 120 pesos per kilo.
The
rationing of silver in the mean¬
ing from 5% to 15%, also at their
high, would ordinarily be consid¬
ered ominous, but in view of the
measures
cited"1 before,
there
price
time
has
been
abandoned
as
rising consumption indicates.
; : It,
must be mentioned here
the
in
passing that originally an agree¬
asked
high
as a
the
and,
at
premiums
asked for the smaller coins rang¬
would
appear1 to bd' no serious
danger of a runaway inflation, if
any.
Any inflation probably will
be confined to a price inflation,
aside from the
It
a
great deal of the
circulation
actual
position
Centenarios
for
especially since
ex¬
It
diately disclosed to the public or to customers who may they all had the .capacity to draw correct judgments.
happens to be that there is such a vast number of securities
make it public or who may
carry it to other offices then the
dealt in over-the-counter and such a large number of cor¬
dealer who has done the valuable work
may lose the Tti]
benefit of his labors Lid also his customers are thfe! lowers. porations that dealers frequently specialize in one-small
This is not competition.
This is destruction of competition. group and often in just a few select corporations!and secur¬
ities in a group in order that the dealer may have1 the best
Y
;
iL lu
Competition Is The Life Of Trade
possible information on these securities, for the benefit of
his customers.
While "Competition is the life of trade" the
Competitors are always seeking to get this
very life
of competition is determined
by knowledge, foresight, in¬ information and use it for their advantage and thereby avoid
vestigation, hard work and drawing right conclusions ahead the costs of ascertaining this valuable information which
have been borne by the industrious and successful dealer.
.of the other fellow.
When a dealer must
comply with a
If the dealer is compelled to disclose all of this information,
long set of complicated rules and regulations which absorb
instead of creating competition,
competition is thereby
his time and disclose to the customer or
any one else full killed and the incentive to industry and effort in behalf
information about gross spread and other details about of the customer is
destroyed.
■.
industry.
The
hoarding
most
likely was helped along by the
psychological reaction created by
a
(.720)
pesos
ounce.
currency commenced at the time
of the rationing of silver to the
Therefore,
12
an
Probably the hoarding of silver
the other
contains
silver
83%
takes
market.
peso
S.
States
domestic
on
to point out
Treasury
paid
producers at the
U.
.711110
the
high price of the
very
the
careful
was
the
United
difficulty in filling its needs
the
your¬
of your sil¬
Mr. Eduardo Villa-
rate of
scarcity
competitor
pensive information and research which he would other■wise regard as strictly confidential because this is the deal- is weakened and his incentive to remain a competitor and
.er's stock in trade and he must keep it confidential to pro¬ provide his customers with the best possible information is
tect his customers.
It is also conceivable that for a cus¬ immediately destroyed by having any gains from these
efforts taken from him through the disclosures. It would be
tomer of long standing and who has a
sufficiently large
a fine
thing if all dealers and all customers were equally
amount of business a dealer will
go to a great deal of ex¬
intelligent and equally industrious but even then they would
pense in doing research for that customer and provide him
not all have the same information, if one could suppose
with information.
But if such information is to be imme¬
,
that
industry;, •.r%tiU£)- silver was ra¬
tioned fry "the: Banco de Mexico,
it had
all
Managing Director of
Mexico,
silver
articles
and
obligate
you
me
silver question before the conven¬
tion of Chambers of Commerce in
otherwise.
Even
it said
ounce,
Banco de Mexico, in a speech de¬
livered on September 10th on the
This insistent
ounce.
that
#needs>".
senor,
developed because of the
absence
U.
securities in which he is dealer his
■.
tic
because
articles from the U. S. A.;
demand
an
production (outside of domes¬
ver
which has become
; another dealer free what has cost the first dealer heavily
and which may result in such heavy costs and little oT no
^ gain that he cannot continue in business.
It is fully under¬
one
(1)
order
1940
with
of".
S: at
However,
Treasury agreed
S.
self to deliver
the fact that
tremendously
2,500,000 kilos
If the customer takes such information
customer carries his whole account
increased
2,300,000 kilos
,
a
leaving
lies in
causes
UA—— '--I.ISfirYMi--A AA_A~~_-_
•
t940- *
_
standable that where
production,
of the
U.
450 U. S.
necessary
probably
about, 600 thousand kilos free. One
A
195*)
•
•
most
an
its
ter
,
.and goes
of
the
pro¬
U.
ounce.
,
required to educate- his tion^fv^ilver heretofore has been
doing business with him or should the qus- VeiiQfow, amounting to scarcely
fomer before doing business take the responsibility? of 100 thousand kilos a year. Of this
iOtt'^Eousand kilos, the industry
educating himself?
v
^
absQr|>e& a little more than 50
[
•
Shall the dealer ask the customer to guarantee himjhat
kilos. This has been the
he will confine his business exclusively to the office of hd|i»^sconsumption up to 1943.
this dealer if he discloses to him information about his costs, The glance was needed for coin¬
age; purposes.
In the years before
prices, profits and other details about securities which have 1943^|hi§ metallic circulation has
; cost the dealer time, money and a vast amount of expense beeru^;
and labor to learn?
has
an
silver
the
to
.
customer before
•
in¬
thousand
great deal further, be¬
a
sell
effect: "If I pay you 100 more
than I have paid you before, it is
silver industry as long as it
compatible with the monetary
the
system, but at the same time it
Americas.
;■'
:•%; must protect its monetary system
TheyVfexican production of sil¬ by every pertinent means, no mat¬
tem,
Mexi§atk international
be
feel
func¬
countries and that
therefore
is
it
has
3
enormously
increased
need for coinage as will be seen
later, so that Mexico's own con¬
sumption of silver now totals 80%
on
quarters
reveal
discharges
tions
of silver
use
V;:,%vY:
currency.
now
sides
Government
and
a
as
Should the dealer in the over-
markets
stabiliza¬
money
regarding
this
important
problem
among
those who battle for the recogni¬
ago.
•Changes in the future over any long period in advance defy
an accurate
analysis and forecast.
Still it is this effort to
analyze and forecast and make a judgment on what the
future holds that keeps eternal hope and progress going.
Is
"there any reason to saddle one section of the market with a
definite series of rules and regulations or limitations upon
■gross spread of costs and profits different from that oL.any
international
tunity to present the view of the
Mexican
and
increased
S.
to pay
down in the U. S. A, to be sold at
leading to the
it felt pleased
tion
silver
about
month to 15 thousand kilos
a
month,
a
of
from
domestic
There¬
little
a
was
an.
consumption
kilos
U.
to
Mexico
in
the
invited to
produce
silver,
of all the gold, and
of which silver Mexico heretofore
of the fundamental condi¬
999 million pesos.
In the meantime
creased
in
when
dition the note circulation totaled
(2) the
disappearance of many of the
larger silver coins, like the peso
and the 50 centavo pieces, which
are
believed
by many to have
gone into contraband for melting
the
than 4%
more
.
•
all
350
the export of silver otherwise has
Continent because they
75%
whereas
factors.
There are technical
factors, of course, such as a sudden offering or unexpected
demand for a large block of one of these securities, which
may-tend to drive the price of the securities up or down
"within a few days or few weeks irrespective of their long
term merit as an earner or a producer.
But how does price
I making here differ from price making in any of the Qther
•markets?
Whether they be for raw materials such as copper,
lead,.zinc and lumber or finished goods such as shoes, overcoats and motor cars—is it not a matter of public opinion
based upon careful consideration of all of the known factors
to the buyers and sellers with respect to each?
The price
making forces are the same, the economic conditions tend¬
ing to affect prices are the same.
The immediate price in
; either case
may have no relation tq the price at some distant
date or in the near term past.
Present conditions are dif¬
ferent from those that existed only yesterday and very
.different
coinage.
has produced about 40%.
by
part
as
The future of silver is of prime
interest to the countries of the
prices and the great variance in prices of
fore, when Mexico
It is essentially a matter of quality and quality
join in the studies
securities.
silver
even
circulating medium, it is
at all impossible that they
have to turn to the use of
not
tions that make
is
to
their
produce
Quality And Price
•••
added
the
provide ex¬
change for repayment of loans.
Therefore, instead of the various
'■■■•"■%•
-
r
with
and
cover,
necessity
such that the investor
are
gold
any
term maturities and
near
leading up to the pres¬
when it operated
its
war,
economy
successfully, both
in¬
ternal and external, with hardly
[you will find that the uncertainties existing in the future of
some
; We have had
object lesson of Germany in
the
duced
2646)
page
existed
ment
Mexico—Its Economic And Financial Policy
high price relative to dividends
and even to earnings. It is not unusual to find a stock of this
character or that of say Sun Oil selling at 15 to 25 times divi¬
dend yield or even earnings. On the other hand we could
■point out that Southern Pacific Railroad stock is selling a
little above one time average earnings for the past three years,
"while the shares of many very busy companies in the avia¬
tion industry, producing necessary war equipment, are sell¬
ing for less than this year's earnings or less than the aver¬
age earnings for the past three years.
Upon examination
a
2647
hard
is
money,
gold backing.
must not
be
overlooked that
the prices of every kind of prod¬
uct of Mexico are under a tremen¬
dous pressure due to the insistent
demand
from
the U.
S.
A. which
will
inevitably subside as the
ceases,
and thereby relieve
cided
war
de¬
scarcities.
there
Undoubtedly
quite
boom
has
been
in
building and in
real estate values, which will be
subject to readjustment when the
time
a
comes.
Just how serious this
readjustment of value will be, ,is
of
course
impossible to foretell
with
any
degree
of
However, considering
stances
it
certainty.
the circum¬
will
probably not ap¬
proach in any way the seriousness
of our real estate
collapse in 1933.
The
reason
for this assumption is
that this real estate boom-is
con¬
fined
chiefly - to
centers
like
Mexico City, and will therefore
affect
age
a
of
relatively small percent*
the
population.
While
(Continue
on
page
2649)
as
America's Role In China's
The
Post-War Reconstruction
wider
this
of
American of this generation
beyond the seven seas to
every
look
to
of na¬
help 1 build a new society
tions wherein there will
but
wars
be no
permanent tranquility in
standard of the people by indus¬
■;
-
long
tion of China was
the
by
industrializa-'
for the
need
The
Sun
Dr.
late
the
hind
envisaged
Yat-sen,
China
construction
It
country
his
for
.
doctrines.
economic re¬
gigantic scheme of
Total
Coal,
Cotton
of
The
•'
(2) Sikiang
nals.
-
nals..
of New Ca¬
:
(1) Liaoho
r
Sunghwakian
-
Canal.
Japan launched her barbarous at¬
tack in 1937, is already gone, as
r,
.
,
projected,
(2) Others to be
,
whatever had been ac¬
complished from the time of the
establishment of the Central Gov¬
ernment in 1928 to the time when
cerned,
■;
(a) Construction
ities
and
Thus Facilitat-
Ocean-Going Ships
ing
Reach
to
That
at
Port
All Seasons.
I
(2) To Regulate the Hwangho Embankments and
Channel to P r e v e n t
Floods.
the
Regulate
(3) To
hostil-
of
outbreak
the
From
Em¬
Channet
of
the
Yangtze
River from Hankow to
the Sea,
with the wind.
it were,
(e) River Conservancy.
(1) To Regulate the
bankments
far as the
development
is con¬
industrial
Ca-
Yangtze
.
48,000
still burn¬
was
It
comfort to no¬
tice this favorable trend in the
nation's outlook for a better post¬
industrial
war
that blueprinting is
be mentioned
thing and that the means by
the blueprint can be put
one
dent industrialists to map
Othcr Rivers.
Country.
II. The
Development of Com¬
mercial
Harbors.
Ocean
Largest
(a) Three
With
Ports
Ca¬
Future
pacityEqualling
The loudest argu¬
is that because this
far from the scene of
country is
•:
.
'structeid(iin North, Cen-
serious
nomic
and
try as a result of the
a
at
tities for export.
taken
much
a
of the
mpre
subject con¬
Everywhere talk of eco¬
is revived
reconstruction
modern
of
schemes
new
in¬
forthcoming
are
constantly both from government
a
foregone conclusion that
unified, and
China will always be
more
even
'
III
which
after the war and
so
need
will
she
that
American
attract
to
order
In
the
penny
every
nations
creditor
can
has already been spoken
of above. But with special refer¬
ence
to the third question, Dr.
spare, as
Chang came forth with this bold
statement, saying "The answer is
that since rehabilitation and re¬
construction in China
can
only
try on some
whose
risks
in the long run,
made secure
be
will not only need
China
That
always assuming that
to maintain a good future entanglements in connec¬
government run not tion with the transfer of capital
funds are to be avoided. That is
according to the wishes of the
oligarchs,' but by law.
In other to say, the United States as a
creditor nation must be prepared
words, both the industrial and so¬
cial milieu must be so set as to be to accept China's goods and ser¬
conducive to the growth of cap¬ vices if interest, amortization, di¬
vidends and profits are to be re¬
ital, both foreign and domestic.
That the Chinese Government ceived over a period of time on
commitments.
This
will have every intention to make her foreign
it attractive to American invest¬ country cannot insist on the pay¬
ments in postwar China can be ment in gold alone; as a matter
of fact, China has no gold, be¬
seen from its recently announced
of interest, but
capital
meager
supply bound
entirely—a
deplete
to
condition
which is already true at present-
inevitably will and must look to
this country for capital if she is
to finance her industrial recon¬
struction.
There is no other im¬
mediate
source
which
on
China
depend for the amount neces¬
can
to carry out even such a pro¬
sary
stable
and
policy toward foreign
in general.
the
At
meet¬
Session of
(1943)
11
Sept.
investments
ing of the 11th Plenary
Executive Committee
Supervisory Committee
the Central
the
and
Kuomintang,
the
of
the
of
one
important decisions relating
foreign investments in China
most
to
China, after the war, with her
dustrialization
reads:
international trade is not a
cause
one-way stfeet but a two-way
traffic. And a nation simply can¬
not
the last
after
country
war,
restrictions
all
ers,
applying
to
Chinese-foreign joint enterprises
shall be revised.
Hereafter, no
fixed restriction- shall be placed
on
of
ration
the
capital
foreign
joint enterprises. In
investment in
tariffs'of this
twice—in
raised
were
1921 and in 1930—much to the
if they
steps,
here.
so-called,
be
may
familiar
too
are
dis¬
debtor nations. The,
of
those
unwise
tress of many
consequences
"Therefore, be it resolved that
spirit of close coopera¬
tion with China's friendly pow¬
to show a
importing.
without
export
During the first ten years of this
country's being a creditor nation
repealed
be
to
^
;
.
agreed that this cbuilfry'
will be willing to accept gdoas
from China, one would naturally
If it is
China's capacity to
ask, what is
Our answer to this question
be sought by looking into the
pay?
can
of a Chinese- goods which China can export to
enterprise, except this country in the postwar years.
for the chairman of the board of
There are a great many kinds
Utilities
to
Be 1 Con- become the most popular slogan the total needed would amount to
the general manager of commodities which China can
structed In All Railway in Free* China and it has even $50,000,000,000, which is to say the directors,
need not necessarily be a Chinese.
export in large quantities abroad
Centers,
Termini,
and been erystalized into a book by least' is an extremely conservative
Generalissimo Chiang Kai-shek.2 estimate, such a sum of money The foregoing terms of coopera¬ after the war. To name some of
Alongside Harbors.
and
Navigable Rivers.
1
i
On
mapped out
illustrated
can
tances
most
the
but
above.
as
their
China
to
from among
in
this
Chinese
overseas
country
Assuming that
be raised
never
the
merits,
mapped out by Dr, Wdng
gram as
dividual
the
Works
has
Reconstruction"
The plans currently
and
Cement
and
by the people are all very prac¬
tical indeed, each having its in¬
ment,
V.Iron and Steel Works
private sources. Today, "Re¬
sistance
Develop-
Power
IV. Water
:
took
attack
sneaked
view
cerned.
Constructed
III. Modern Cities' With Public
.<■
however,
being the good fortune of
have
eral
(c) Commercial Docks to Be
Constructed Along All
w
latter's
Such
Along the Coast.
'f
country,
the war, it is no wonder that since
that fateful day the people in gen¬
'
Be
wartime
Pearl Harbor.
(b) Vafiotis Small Commer>r:eial ; and Fishing Harto
the
the
if'trQliand^South China.
bdrs
In consequence of
expansion much of the
Not only that.
productive facilities of this coun¬
technological
changes
brought about by the
favorable turn when the United exigency of the war in all proba¬
States joined the war against Ja¬ bility will become obsolete and
pan in the Pacific as a result of thus be available in large quan¬
of
New
York Harbor to Be Con•
out any
specific program for rebuilding
the country after the war is over.
This sullen outlook for the future
it is
as
all post-war foreign capital but will try every
foreign investments in China will means to afford foreign investors
into
practice is quite another. be made on a long-term basis.
the greatest protection therefore
That is to say, what is the pros¬
If China is to assure the Ameri¬ should be unquestionably clear.
pect for obtaining the necessary
But if the United States is to fi¬
can investors of these two funda¬
capital equipment for the suc¬
mental conditions, it is incumbent nance China's post-war industrial¬
cessful
accomplishment
of the
ization, there is however one con¬
minimum objective as designated upon her not only to guarantee
that American
investments will dition which this country as a
in Dr. Wong Wen-hao's program,
be given a relatively higher rate capital exporter should observe if
which
actual fighting, its industrial ap¬
Hwaiho. ing; hence the paucity of attempts
(5) To Regulate V a r i o u si even on the part of the most ar- paratus obviously will be intact.
(f) The Construction of More
Telegraph Lines and
Telephone and Wireless
Systems
All Over the
eign investments enjoy adequate
protection?
It is perhaps idle for
us to ponder at length on his an¬
swers to the first two questions,
domestic enterprises be accomplished effectively with
are comparable
to foreign economic cooperation, the
those abroad.
The return on in¬ Chinese Government will surely
vestments being assured, the re¬ give all the reasonable protection
society, it should
turn of investments should also required by foreign investors." (i
But while taking
(4) To Regulate the
,•
of
supply toward the realization
her industrialized programs.
December 7, 1941, those
were surely the darkest hours in
since, as we all know, the posses¬
China's history and the worst was
sion of capital is the beginning of
that during those dreadful years industrialization?
China had to stand alone against
After the war, it may be safely
the onslaught of the aggressor.
Under such circumstances, it was said without fear 6f over-state¬
only natural that the public was ment that the United States will
silent on the subject of post-war be the only country which can
planning, the general feeling be- supply the rest of the world with
to
roof of the house
capital
States for all the necessary
in which the peo¬
| ing that it was futile to talk about capital funds.
ment for this
Siki- post-war reconstruction while the
ang.
foreign capital? and (3) will for¬
2,400
3,000,000
beyond any doubt that-the
investments
there
are
several
unfaltered belief that Japan will
fundamental
conditions
which
be defeated in the long run, if not
must be fulfilled on the part of
sooner—a
psychological factor
China.
First, the return on in¬
which is equally .essential to the
vestments
must
be
relatively
successful prosecution of the war
—is once again reaffirmed by the higher than that which the same
would receive in the home coun¬
general public.
Suffice it to say that so
nals.
who took occasions
particular ques¬
frequently raised by pro¬
three
answer
post-war China.
These questions
are (1)
will China be politically
stable?
(2) will China welcome
1,500
10,000
proves
world.
civilized
the
to
known
Hangchow-Tientsin Ca-
(1)
•
Dr.
official,
Government
munications,
to
2,500
1,000,000
5,000,000
indued" encouraging.
is
tion
presence
high-ranking Chi¬
a
Chang Kai-ngau, former Minister
of Railways and Minister of Com¬
3,360,000
manner
the
have
also
we
China
tions
7,500
paring the country for the gigantic task of post-war reconstruc¬
well
is
this
all
here;
from
spective American investors con¬
cerning foreign investments in
10,000
ple of Free China are captured by
this wave of enthusiasm in pre¬
properties need not be
repeated
Canals.
Recently
benefit of having in our
1,000
59,000
p..
profitableness
greater
of
1,500
5,000,000
bales
L
kilometers in
yarn,
Steamships,1 tons_„^._-
human
of
destruction
and
lives
of Existing
(c) Improvement
foreign investors of the possi¬
2,500
29,000,000
—
China
of
and security.
may
in Millions of
Chinese Dollars
7,500
;■
Output
5,000,000
100,000,000
2,500,000
20,000,000
4,500
lines
new
of
wanton
adam Roads.
i,'
it
Value
The 10th
7,500
85,000,000
tons
Rails, tons
Locomotives
1937if This War against
Japan's
unprovoked aggression
munications System,
/or
has already been in Existence for
(a) 100,000 Miles of Railways.
seven long years.
The stbry of the
.(b) 1,000,000 Miles of Macful year
Com¬
war,
the Immediate Stage
Year
12,500
12,000,000
——4-
Railways,
in-that fate¬
had to break-but
war
along the following lines;
"I. The Development of a
to be con¬
the War
Value
500,000,000
plates,
Steel
indeed unfortunate that
was
the
after
19,500
Cement, '■ barrels 2.i.
Machines
.
to
desire of the
to assure
sincere
a
as
Government
situation with bility
the
which China will have
14,000,000
ozs.ll--
Goid,
"-'V
:
Wong's
all
program.
Such being
In Millions of
Chinese Dollars
Output
For 10 Years
tons
tons..
Steel,
1937, as Japan
a few
more
"
taken
productive en¬
of
lines
those
terprises as planned in Dr.
Economic Reconstruction in
Goals for
given
leeway
greater
nese
Chinese Republic.
In his immortal work, "The Inter-, years later she would have to deal
national Development of China," with a China thoroughly baptized
in and modernized by Dr. Sun's
published in 1922, he laid down a
founder of the
The
it too foreign investments is highly en¬
necessarily be invested couraging and as such should be
not
may
Following
that
then
foreign loans." 5
seek
safely be said therefore that China
will and must come to the United
China's Minimum
categories may
and which
ments
and gven if it would,
over,
fronted
period he
following goals for
the nation to accomplish:
be
invasion
Japanese
July 7,
on
realized
first
money
return to the
once the war is
market
Chinese
in
the
that
mean
decade in the post-war
accomplished, To speak frankly,
that was the principal motive be¬
15
:
the
in
to
immediatetly
laid down the
objec¬
of the program were to
tives
'
with which the
verishness
people,
of the American
Thus
trialization^
relationships, and
ment
of
ocean
transportation—
the assistance which this country,
just to mention, two of the many
we trust, will give to China in the
phases
of
industrial
progress
post-war period should be the
made in the pre-war years, that
first step toward the fulfillment
of this added moral responsibility is, 1937—indicate clearly the fe-
international
defense
raising the general living
and for
It is only
fitting that the National Govern¬
ment ever since its establishcent
in 1928 "at Nanking has adopted it
as
the cardinal principle fof the
reconstruction of China along' the
lines of modernization. The gradual
extension
of
the
nation's
transportation
system and the
rapid strides made in the develop¬
problem on the part of
the American people. It is a new
national
sentiment
which bids
strued
will
national
China's
of
ing
(Continued from page 2631)
interest in is indeed penetrating.
China's
people.
plan is, according to expert in¬
terpretation, ."to insure a solid
industrial base for the strengthen¬
_
tion
it beyond the means of
:minimum objective of his
to place
the
Thursday, December 30, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
2648
annual
the
on
remit¬
average
m;m
Largest Scale in Order
to
Supply
the
Above
specific and the most authoritative
of all is perhaps none other than
Needs.
,i-
that
whiqk has been put forth by
is, as is generally believed, a great
deal of Chinese "hot" money in
Dr.
Wopi Wen-hao, Minister of
the
VI. Mineral Development.
EconbiWfd7 Affairs
Agricultural Development.
VIII. Irrigational Work On the
Largest Scale in Mongo
VII.
lia
Sinkiang.
IX. Reafforestation in Central
Dr.
gram
vekpment of China, pp.
should adopt
war
5-6.
.Oo-
which
reconstruction
will
be
pro¬
ambitious
enough to be of real value to the
but
country
not
s0
burdensome
'
|
International
ten-year
a
Manchuria,
1
The
Wong debms it necessary that
China after thb
Mongolia, Sinkiang, Kokonor, and Tibet." 1
The thoroughness
with which
Dr. Sun approached the problem
Yat-sm.
Commission.
Resources
to
2 Chiang
Kai-shek,
Resitance
and
Re-
construction, (New York: Harper & Brothors,
1943).
$30,000,0000 only. There
banks
much?
how
on
Wall
Again
Street.
this
is
But
hard
Some put it at $200,000,-
say.
000; others at $300,000,0004.
suming that $400,000,000 is a
cor¬
figure, it still cannot be
con-
rect
China.
X. Colonization in
lSur.
concur-
rcntly "Chairman of the Chinese
National
and
and North
and
amount to
3 Cf.
titled,
Dr.
Kinn-wei
Shaw's
As¬
speech
en¬
"China's Post-war Economic Recon¬
and the World Peace Strategy,"
delivered before the First World Conference
the
World
Confederation
tional Groupments, New
of
Interna¬
York, Dec. 5, 1942.
4 Feng, H. D., "The Prospect for China's
Industrialization," The Pacific Affairs, vol.
XV, No. 1
(March 1942)
"pi.
49.
joint
foreign
tion
an
shall
effective
become
after
agreement by the parties, con¬
cerned has been reached
secured.
the
of
approval
and the
and regulations,
ghq jhaving received the sanction
of," Chinese
the
,
important
law
pic me*?Cd"inese Government, may
findlice; their own enterprises in
China, \ 'Negotiations for foreign
,
enterprises shall be
Private individuals
goods,i(} tea,
foreign loans for
enterprises and such loan
negotiate
their
agreements shall become
following the
approval
effective
of the
Government
shall determine at an early date
Government.
duction
Besides,
etc.
world
pro¬
antimony,
of
monopoly
of
tungsten, and large quantities
such
metals
nese,
all of which
.
Chinese
5 See
lease,
6
enter¬
at
invest¬
21,
the
as
tin
and
are
manga¬
also avail-
News Service,
Special
Rc«
September 15, 1943.
"Economic
China,"
state
of
wool,
She possesses almost a
The
category
embroidered
and
China is rich in mineral resources.
prises may accept foreign
which
products,
leather
bristle,
ucts,
band-knitted
loans for state
centralized.
mention
may
we
soybeans, raw silk, egg products,
Government tungoil, peanuts and peanut prod¬
At the same time, aliens,
ijl. accordance with the provisions
may
struction
of
organization
the
an
Cooperation
in
Postwar
address by Dr. Chang Kai-ngau
New York, October
University Club,
1943,
(Bold-face-mine).
I
Volume 158
able
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4242
realized
in
that
huge quantities for for¬
eign consumption/?
However it should always be
too
many
this
country
borne
mind, that fundament¬
ally the factor governing China's
exports to this country or to any
rely
for
other country is but the ability of
the Chinese producers to ensure
than ten per
in
times,
tional
against hard
must be sold
which
much
in
simply
are
stable
products
of
which large areas
insurance
and
abroad
there
volume
greater
cent of the total na¬
production. It is only when
soundly made in the '20s immedi¬
ately after tne last war, bui how¬
repayment
comparably
better
loans
ment
made
And this should
in¬
least
at
was
than
govern¬
those years.
in
to dissipate
serve
China, that is, loans to be paid
in
goods of "guaranteed
quality" gives us ample evidence
the misapprehension of the de¬
importance of featist ,that the* system of private
America's
foreign markets .im¬ lending is passe and through.
But
the
presses
itself
vividly . on
the
necessity of seeking
public mind. For this reason Pro¬ outlets abroad on the part of pri¬
fessor Paul V. Horn, of New York vate investors perhaps goes deep¬
University, has characterized the er than the mere restoration of
income of this country derived international
confidence,
which
from foreign trade as the "profit however important as a basis for
margin" 9 of the national produc¬ world-wide economic reconstruc¬
tion, and his statement is correct. tion should, as far as regards the
That
the
actual
business
of "intelligent
selfishness"
of
the'
to
making
this state of affairs is fully appre¬
the
supply of goods, at competi¬
prices, of guaranteed quality.
Given a free hand to develop her¬
ciated
tive
self after the
doubt
that
there
war
China
no
seems
will
have
the
ability to live up to this expecta¬
The
experience
of
the
tion.
United States Government in
nection
with
several
of. its
con¬
loans
to
back
this effect.
::'v-
x,
•...
regard to
partic¬
ular misconception which is deep¬
ly ingrained even in the thinking
of many
intelligent people and
which we would like to clarify
here,
of
agricultural
and "backward" countries will in¬
evitably lead to
volume
of
a
being
country becomes
more
ized the degree of self-sufficiency
will be intensified with the .result
that it would tend to buy less and
and less abroad until finally the
whole
system
trade be
brought to
should
It
international
of
need
standstill.
a
serious
no
~
stretch of language to say that the
assumption underlying this mis¬
apprehension about the signifi¬
of
cance
industrialization
is
en¬
tirely groundless and in the light
of historical experience does not
hold water at all. Take England,
for
example.
England
is
un¬
doubtedly one of the most indus¬
trialized
countries
But
who
she
is
in
the
world.
deny the fact that
can
the
best
customer
of
this
country? For, as Professor Nadler, of New York University, put
it, . "Industrialization
invariably
raises
the
the
standard
of
living
people, resulting in
ing
demand
goods
and
for
dergoes
To
however,
measures
not
are
direct
unless
x
ing
result of the industriali¬
a
zation
if the buy¬
of the 450,000,000 Chi¬
power
nese as
case
of
China
by'.; only $10
could
per
be
raised
capita, the im¬
petus given to the export trade
'this country perhaps would be
of
so
great as to
The
sub'h
baffle
our
x," -.•%./
tioii'.;0
x:/:
beneficial
a
course
effect
imagina\ \
■
following
of events should not
be dismissed without due consid¬
eration.
has
over
of
It
is
true, foreign trade
contributed
a
period of
the
the
average,
only 10%
years,
national
country,
strued
On-
income
of
but this cannot be
to
mean,
is
as
too
this
con¬
often
contended, that foreign trade has
played only a small and insignifi¬
cant
role
in
the
stabilization
per
cent
is
only a small fraction of
production.
But when
people say that an average of ten
total
cent
per
must
of the national1 product
exported to1 ensure pro¬
against the possibility of
be
ducers
incurring losses in their produc¬
tive enterprises and to maintain a
high level of employment, in fact
these
people tell us but half the
On top of this it must be
story.
7 Cf.
Wang
the
World
in
construction,
Chuncr-y^, "China's Position
of
Minerals," National Re¬
(published
by
Committee
Wartime Planning for Chinese
the
p.
United
States)
Vol.
Ill
Students
(April,
on
in
national
Economic
"The
Position
Postwar
of
States,"
the
Inter¬
United
The Annals of the Academy of
Political and Social Science, Vol. 228
(July
1943»
pp.
94-95..
sidered
an
as
British
past
will
experience
be
home.
extent
when
the
that
after
have
the
an
unemployed
this
America has nothing to fear
in so doing she would be
over.
that
branded
practicing economic
America's record in
matters
pertaining
to
interna¬
tional
economic
cooperation
is
cilear and straight. Europe knows
as
imperialism.
that and Asia knows that also:
:
take
generally
the
the
over
and
is
that
will
play
major
a
world.
of this
However,
while
agreed that political
recon¬
struction should be the handmaid
of the
State Department in coop¬
eration with other United
it
be
cannot
taken
economic
should
be
Nations,
for-, granted
reconstruction
entirely
too
entrusted
to
the hands of the Government.
As
matter of fact, the policy of the
Government, if it could be so
a
formed
at all,
ought to permit
private business enterprise, as far
as
foreign investments are con¬
cerned, to do what it
supplement
that
by
whatever
action is necessary
governmental
in
and to
can
addition—a
policy
which
no
doubt will meet with the greatest
approval
people
chief
war
of
the
this
of
country.
economic
world,
creation
need
run
For
of the
of
the
post¬
believe, is not the
we
of
common
more
governmental
super-machinery, of which
have too much today, but "the
we
re¬
turn of individual Goverments to
policies under which
of
international
a
restoration
confidence
and
private international lending will
be possible." 11
in
But
order
to
bring
about
such
a
governmental policy the
final decision perhaps lies not so
much
With
the
Government; as
with
the
himself.
is
private
is
It
expected
he,
to
investments
business
[Shah
after^flli^vv^d
bear
th^/.nsk^'oi
the
as
Goybrri'ment
can only
guide but cannot' guar-r
antee the profitableness of an en¬
terprise. It is therefore up to him
to
accept the
abroad,
to
so
speak, when the
arises.
True, many
opportunity
private
challenge of going
foreign
loans
were
9 Horn,
Paul
V., International
Principles and Practices, p. 25.
10 Johnson,
of
capital
billion
million
•
A. J., An Economic His¬
England, p. 140.
British
investments
in
in
11 New
4, 1943.
E,
Modern
1913
1885.
York
un-
Trade:
as
abroad
compared
Cf.
Times'
stood
with
at
£4
£1,302
Ibid.
Editorial, December
of
if
pro¬
whip,
it
as
were,
(Continued from
prices, of cotirse, have also risen
in other cities, it is
reported that
the rise has been in
food, it
than
all mortgages are
as
most
and
years,
that
valuation.
What
of affairs
state
a
As
is
timely
will
be
warned,
the government is the
the only employer and
10
to
amount
is
15
lent
of the
is
more
that
all
mortgages are required to be
approved by the Comxnission Nacional de Bancaria.
What
both
is
of
with respect
tate situation
eral
,
great
significance,
to the real
well
as
es¬
the gen¬
as
Situation, when the demands
the benefactions engendered
or
the
war
live
is
cease,
th&n 60%
more
close
that
by
perhaps
of the population
the
to
ground, whose
consumption has not developed to
any degree.
Therefore, if there is
a great
shrinkage in income, it af¬
fects
relatively small percentage
Mexican population seri¬
ously.
Al?o any;, let-down after
the war-,;i# ^pty to be cushioned
as
concerns iMexico
by the fact
of
a
the
reason
of such
in
the
generally is less than 50%
time
through spending billions of
the taxpayer's
money, the same
no
doubt could be accomplished
in peacetime.
The consequences
amortized, in
mature
cases
much
in
the
industries
no war
that
sense
have
we
them,
with its attendant expansion.
quite
evident
It is
then, that for this
it will not face the serious
problem of unemployment which
face
we
from
from
is
this
returning
another
chiefly
aside
source,
sodliers, and for
that its population
reason
agricultural
that
and
once
or
most
and
prosperity.
all the instruments
or
tion
in
the
and
power
The
American
stifled to
business
such
extent.
an
order to avoid such
man
But
in
consequences
and thus continue to
dustrial
lead the in¬
society of this country for
the years to come,
then
it seems neces¬
he should: come
that
forward and face the opportunity
which may necessitate his going
places far beyond the horizon
of the blue Pacific after the final
victory is
the
x/'''kkuVV''''
concluded,
foregoing it may be
therefore, that help¬
ing
to
China
help herself to a
better life ought to be one of this
country's greatest opportunities in
the post-war years.
It cannot be
Claimed that in
so doing America
wholly altruistic.
To
cooperate with China and to assist
would
be
her
lay
to
industrial
deed
solid
a
open,
of
a
field in which
thousands
American
soldiers
ployment.
building
of
development may in¬
as has already been
spoken of above,
Jens
foundation
of
may
Consider
net
a
returned
find
the
work
em¬
task
of
of railways
and
highways as mapped out by
Sun; of equipping it with the
necessary locomotives, freight and
passenger cars; of supplying the
highways with millions of trucks
Dr.
and
buses; of furnishing
industrial
equipment
necessary
for
China's
seaports,
shipyards, mines, steel
works,
machine
shops,
textile
mills, and other industrial ma¬
chinery of every conceivable kind,
and our imagination is
just baf¬
fled by the immensity of the work
.
involved.
The
late
his views
the future
on
possibility
of this world which would absorb
to go
philos¬
ophy to show that the Chinese are
into the
permit
velopment
by
of
may have entered a period
gradually rising price level.
•
a
,
In this respect it may be noticed
and with wonder, that even in the
last
five
tion of
years,
has been
still until
now
masters of their
a
new
period
of
production expansion
P.,
Why
(U.
S.
of
the
world,
free
are
fate,
own
that
China
have
to
Plan
for
Chamber
the
of
Commerce, Postwar Readjustments Bulletin
No.
1) p. 9. (Bold-face theirs.)
be
we can
in
order
to
keep herself
occupied
with
the
continously
years
twenty
nor
generations
simply
no
to
but
years,
for
There
come.
is
whatsoever that
reason
China would adopt a pattern of
imperialistic conquest even if she
were in
a position to do so.
For
as a
contemporary historian put it,
"The
Chinese
have
been
never
a
conquering
race, and it is unlikely
they will become so in any
that
visible future." 13
As
a
matter of
fact, the Chinese are no nouveaux
arrives; through the centuries they
have known power, but they have
never become inebriated by it yet,
and
they
likely
not
are
"to
be
hyponitized by it," in any distant
future.1(5
Moreover,
trialized
as
a
the
strong and indus¬
a
China will-ways serve
enforcing;
peace
Far
East
for
power
as^a ^die.s(
everywhere.
China
will
But'/xa?'
be
powerful
bulwark' of
a
the
that the invisible balance of pay¬
has been against Mexico.
ments
However, with the results of the
measures
taken, the repatriation
of its wealth and of its
obligations,*
settling of the external
like
the
debt
on
one
dollar
the basis of
13
Quoted by
14
sion
uary
The
29,
Politics,
on
this
p.
Wall
Parfces,
/
Street
tourist
traffic of late years, etc.,
etc., the picture in future is apt to
be radically different.
And last but not least:
prosper¬
ous
people do not revolt.
ALEXANDER T.
/
Alexander T.
16 Now
Chen,
see
Some
Recent
Vol.
IV,
Henry
C.,
Platitudes,"
NO;
2
New York City
Dec. 15,
1943, Mexico, D. F.
Bank & Insurance
Sloels
,
(Continued from page 2639)
making direct loans to the Gov¬
ernment
by the purchase of Gov¬
ernment
securities,
they
make
loans to " contractors and
sub-contractors engaged in
war
work, and to other essential activ¬
many
ities.
//'■,' ■■ ', :•'/
;
(4) Banking Services: they cash
,
of allotment
checks
allow¬
and
for servicemens'
de¬
pendents;
they
have
opened
banking facilities at more than
two
hundred
military reserva¬
tions and make up cash payrolls
for innumerable
war
industries.
Ration
(5)
Banking: they re¬
ceive and maintain, accounts for
many millions pf{ ration coupons
for sugar, gasoHnesij shoes,
meat
and other rationed,products.
(6)
Foreign; Funds/ Control:
they examine land \.watch their
-
records
of
and
deposits,
advise
the
collateral
Treasury
other
or
which appear to be
assets
owned
controlled by "non-nationals."
They also advise the Treasury of
all foreign securities or other for¬
eign assets which are owned or
or
controlled
zen
or
(7)
their
by any American citi¬
corporation. /.
Miscellaneous: they assist
customers
in
problems per¬
taining to priorities; they aid the
war effort through
newspaper and
radio advertising, and they assist
the Government in the restriction
of consumer credit under
Regula-
tion-W.
Meanwhile, since Pearl Harbor,
of Government Bonds by
New York City Member Banks
haxe expanded from
$5,356,000,000
to
$12,369,000,000; and by
101 cities, from
$11,932,000,000 to $34,965,000,000.
To Admit Partner
;
L.
(Jan¬
PHILADELPHIA, PA.-Frances
Snyder will be admitted
general partner
7-9.
Henry
York
STEPHAN,
Stephan, Inc.,
Journal,
B.,
The'World
After
War. p. 205.
1943.
very
For further discus¬
469.
Monthly,
19439 pp.
for
peso
the
1943.
point
on
China
one
and
considerable balance of payments
created
by the ever increasing
Spyko'an, N. J., Amerca's Strategy in
World
owed,
member Banks in
Brotherhood of Man.
Editorial, Nov.
econ¬
A holdings
strong Japan will qpdanger (Peace
15
E.
Period?
should
we
task of reconstruction, not for ten
"Musings
about
Schmidt,
All
make her largest contributions
the peace of the world prob¬
will
the Mexican
has not been flourishing. One
reasons probably has been
omy
ance
ably
excep- '
of the
millions
expect
with the
year, the trade balance
in favor of Mexico and
one
small,
only
of
formerly im¬
ported,
nations
to
•
industries
new
articles which were
when / the
and
de¬
a
Another point worth consider¬
ing is that Mexico, due to its vast¬
ly improved financial position, de¬
large
The
12
of Chinese
essence
civilized people.
a
of. the
last long enough to
readjustment of the do¬
a
like to say is that after this grim
business of fighting is over, and
brins
Post-War
Western Power." 14 It
is out of place here for us
large capital investments and thus
world-wide
to endanger
notorious
Ivar
Kreuger,
approached to express
was
tion of the
products
mestic Mexican economy.
become
may
as
by the exponents of
Geopolitics, the ' "posi¬
so-called
.
world-swindler,
once
she
strong
so
Mexican
which should
be questioned
helped to become
dreaded
as
to
won,
vi
From
industrialized
day
the
decrease in the
may
that if China is
one
certainly would not like to see the
day
when
private
business
is
to
it
,
is adopted." 12
sary
Perhaps
a
Europe,
au->
to
command, to dictate
implement a policy with
certainty and continuity,., once it
fqr
blessing rather
a
for
demand for- the
-
to
be
may
otherwise
dimuni-
a
demand
mines may be balanced by
mand from war ravished.
of
thority
far.
export
people, whereas
Unhesitatingly he
offered one possibility and that
production, the issues at stake concerned
China.
He
said, "If
will probably be too great to be.
China should be ready for devel¬
manageable
by
the
democratic
opment
on
Western
lines, she
process. If we place upon govern¬
would keep the world busy for
ment the responsibility of assur¬
sixty years." 13
However wrong
ing jobs, incomes, and - a high
Kreuger may have been on other
standard of living, that govern¬
occasions, this time he was right
ment must have
so
Therefore if there is
very
so
is of the small crafts-
type
man
debacle in real estate in
that Mexico has
be
a
2647)
page
which is not,
much
smaller degree. Then, Mexico ap¬
pears,, to have benefited by our
the chief employer.
Al¬
people are saying that if
full employment can be achieved
by the Government during war¬
the Government of
war
the reconstruction
wartorn
it
believed
10,000,000
care
ready
and
is
take
through private channels.
In that eventuality the Govern¬
ment certainly will not hesitate to
chief
is
of
army
to
country
vided
owns
war
this
war
employment cannot be
more
by
on
man
inescapable adjunct
It should be borne in mind
will
to the
capitalized
the American business
fullest
of
con¬
a greater and immediate
objec¬
tive, namely, to help maintain a
higher level of employment at
"When
the
be
man,
to
dreadful.
tory
Nadler,
business
that
1943)
7.
8 Marcus
races
American
ish commercial power was every¬
where unchallenged.
It is hoped
of
the industrial development of the
domestic economy.. Yes, ten
the
by white, brown and
in gll parts of the
world and the supremacy of Brit¬
worn
black
that
purchasing power must neces¬
sarily rise at the same time, and
particular
Thus British shirts
country
the
our
Were
in
Indeed, as the standard of liv¬
ing of the people gradually rises,
in
British goods.
this
change.
modities." 8
or
dividends,, but
"activity in the export
trade," 10 as in the wake of cap¬
ital export went also an exodus of
money
greater
after
to..restrict
exchange ■< of com¬
international
est
role
taken
are
by providing
capital funds for fac¬
tories, plantation, railroads, etc.
To
Great/Britain these foreign
investmentsHot only meant inter¬
of
un¬
many
countries
with
sure,
of the trade
The volume and the value
reduced,
backward
them
IF
be
considerable
a
growth of industrialism of
of
types
„new
services.
the composition
ish capital flowed out to all parts
of
the
world,
hastening
the
grow-*
a
the
through during the first half
gone
trade,
that as a
industrial¬
by
of the 19th century in which Brit¬
reduction in the
international
contention
illustrated
be
can
experience which the British have
one
It is too often said that the
industrialization
trade
industrializa¬
the
tion of China there is
the
foreign investments Will
fillip to American export
//;/'•/,IV.,-S give
'
In
:
.
the
that
exico—lis Economic ins! Financial Policy
unsound they may have been
made, the record still stands that
ever
their
*2649
Editorial,
Nov.
27,
the
as
Philadel¬
phia Stock Exchange firm of Geo.
E.
Times'
in
Snyder & Co., Stock Exchange
Building,
as
of Jan. 3, 1944.
Financing
Billions 0i Municipal
Prospect For After-War Years
In
194—
ancing was as follows:
financing amounting to more than $5,000,000,000 is in prospect during the four-year period following close
Long-term municipal
exceed $8,000,000,000 in the evenLthat
World War "repeats itself only in
part," it was stated in the annual report of the Municipal Securities
Committee of the Investment Bankers Association of America.
The
of the war,
history of the first
Committee, of
H
Jr., Boatmen's
National
St.
is
Chairman,
i s
Bank,
Louis,
- war
fi¬
nancing plans
of the various
F. Hagemann,
H.
fi-
municipal
'
'
Jr.
M
follow¬
ing the cessation of hostilities. In
Reporting progress in its under¬
taking, the committee noted that
practically all of the States, and
many
local governmental units,
nancing task in the years
post-war plan¬
ning commissions to conduct stu¬
dies of local needs resulting from
wartime conditions.
While some
have
for the four years
upon which we have
advices are flexible and
in scope and
character to meet varying post¬
war circumstances and conditions.
A real effort is being made to do
and
amount of the
established
post-war.-.planning
and
to
avoid post-war wishing.
We believe that the great majori¬
ty of the states and cities will be
prepared to proceed with con¬
structive plans very promptly fol¬
lowing the conclusion of the war
—that is, of course, if the necess¬
ary construction materials to car¬
ry
on
these programs are then
It
quite
throughout
generally
the
definite
thought to their post-war needs
and problems. They recognize the
importance and value of advance
planning to the extent practicable.
Your committee for some time
has been making a nation-wide
survey of the post-war financing
plans of the various states and
larger municipalities. Such a sur¬
vey, it is felt, will be of value to
the states and municipalities in
giving them information as to
what other governmental units are
doing and will also be of value
country
giving
are
Sales
of
long-term issues during the
past 10 years were reported by
"The Bond Buyer" to be: 7
1936-
under
:
sub¬
some in¬
summarized
consideration in
illustrations
report.
are
..
(
appended to this
'77;■
7y..:
,
984,094,835
1938-
report. For the purpose
presently indicating what is
stances, a few briefly
1,195,717,486
1,156,254,317
1937_
1,229,105,539
1935_
sequent
cf
Amount
1939— $1,098,604,265
1940
*1,497,683,294
1941
1,229,493,072
1942—
575,588,229
1943 9 mos. 402,844,228
Year
Amount
1934_$1,175,333,698
be ap¬
months will be included in a
conditions
may perhaps
coming conversion period.
Year
projects will play
an
important part in post-war
financing. "The Bond Buyer" is
making a survey of public works
plans. For the purpose of avoiding
duplication of effort,
arrange¬
Public works
'Included
' f
'
the
of
At this time we report progress
•
"Action
For
Cities—A
Guide
Community Planning," should
for
helpful to city officials
planning bodies. It is a-77
municipal officials have been very page booklet published under the
cooperative and we want to take sponsorship of the American Mu¬
this opportunity to thank them
nicipal Association, the American
for the excellent response which
Society of Planning Officials and
in
our
we
undertaking.
The various
have received from them con¬
cerning the status of their plan¬
be
very
and
the
International
City
Managers'
pointed out in the
ning, most of which is presently foreword, it is neither a manual
in varying stages of study and nor a textbook on the technique
development.
of community planning. It does
Factors
which
these
planners
weigh are legislative author¬
ity, costs, means of financing,
methods of payment, ability to
must
pay,
stability
revenues, debt
lirpitations, engi¬
of
limitations, tax
neering plans, necessary advance
appropriations, and in many cases,
the approval of the voters at elec¬
tions. Considerable enabling leg¬
islation
was
enacted this year
legislatures
session. Additional legis¬
when the various state
were
in
lation will be needed in some in¬
municipal
plans require
completion
considerable time for
especially in seeing that they are
comprehensive and carefully pre¬
all
of
the
questions
not
answer
and
it will not substitute for ex¬
later The
Manufacturers and Traders Trust
Company Communicated with
all',
non-member
.
physical transfer has not
Bonds
Paying Agencies
y
be option¬
previously
ty limited tax bonds to
al.
These bonds had
yet.
as
been made.
1
■
(amended July 22, 1943) in
the Cochran County vs. Gerald C.
Mann case holding certain coun¬
We
recently communicated with
thirty
in/various
located
banks
parts of the country which act as"
paying
agencies
for
municipal
bonds. These
represent a good
cross
section of all banks acting
considered non-optional and
been
City
ex¬
former
preced¬
entrance into the war
(1938-1941 inc.), long term fin¬
ancing
totaled somewhat
over
,
capacity. With but one ex¬
in this
and subse¬
sold
originally
were
quently dealt in on that basis. The
opinion was rendered in connec¬
tion with mandamus proceedings
bonds
called, make it a prac¬
the presenters of
are
tice of advising
approval of bonds author¬
refund outstanding Coch¬
detached from such bonds
principal has been called
for redemption. Different meth¬
ods and forms of advices are used.
Some more extensive than others.
the At¬
General held to be non-
Obviously the practice calls for
a substantial amount of additional'
against the Attorney General
of Texas by Cochran County to
filed
force
to
County bqnds which
ran
ception these banks, where they
have knowledge of the fact that
torney
optional. ■ y.v j7.7/ 777: 77
'■
The Municipal Securities Com¬
mittee
of the Texas Group ap¬
coupons
that the
work
the banks. It
the part of
on
valuable interest
is
greatly appreciated by them and
pointed a Special Committee to
direct its attention to the, problem by dealers and undoubtedly by
arising from this situation and the municipalities for which the
the effect of the
decision upon paying agency is acting as it
county credits and upon bond¬ serves to get the bonds in more
however,
is,
a
saving service to investors and
There was a sub¬
volume of refunding is¬
($1,300,000,000) during that
period and refunding has since
continued to play its part. New
money
financing/; however, has
been drastically curtailed to meet
holders who had
in good faith promptly.
7
\ "
■■■
the war situation. Many improve¬ purchased the bonds as non-callSummary of Credit Information—
ments, and projects were shelved able.
>"7 "
7;7777'- " •
Municipal Revenue Bonds
for the duration and repairs and
The
Cochran County decision
7 As
limited obligations in the
raises a question as to whether
replacements deferred.
form of municipal revenue bonds
The,. accumulated requirements or not an option may also be read
for deferred maintenance and im¬ into other bonds which were not require for the purpose of analy¬
provements together with new directly issued under the statute sis, etc., much more specific and
undertakings and refundings will, in question. The Special Commit¬ detailed information than is or¬
tee
obtained on July 26th the dinarily necessary in the case of
in the aggregate, create a need
for a very substantial volume of opinion of Mr. W. P. Dumas* mun¬ general obligations, some of the
new security financing during the
icipal bond attorney of Dallas, officials o£ the Federal Reserve
to
the
scope
of
the Bank of Chicago prepared, early
post-war conversion period. Al¬ relative
this year, a summary of credit
though no one now knows what court's decision, Those desiring a
$5,000,000,000.
stantial
sues
..
length
the
adjustment
this
of
part, such financing may exceed
8 billion dollars during the period.
We, as members of the invest¬
banking fraternity, must use
ment
energy, our
our
initiative, and our
knowledge of financing and should
cooperate to the fullest extent in
formation and execution of
the
the financing
plans of these vari¬
municipal bodies.
and
state
ous
and sane planning now
prompt execution of those
Proper
and
plans in the post-war
be
an
period will
important influence on the
type of economy in
Service, 1313 E. 60th Street,
Chicago, Illinois.
gressman
which
we are
to live.
tion
all of our members and
1943
our
perience oc thinking or hard work
on
the part of the community's
citizens/ and ^officials. However,
intelligent, use of the guide will
greatly facilitate a planning pro¬
gram and help to make it effec¬
tive.
The guide has been pub¬
lished by the Public Administra¬
The Boren Bill II. R. 1502
change in
from that
stated in our Interim Report of
last June. It will be recalled that
the Bill was introduced by Con¬
has
There
the
status
homa to
copy
cision
of the Supreme Court's de¬
and copy of Mr. Dumas!
obtain them upon
request at the I. B. A. office.
opinion
may
bondholder's
A
Judicial
Texas
(51st
Annie
Norton,
Green
County.
sold
dated
bonds
House
15,
June
of
been
no
this
bill
Lyle H. Boren of Okla¬
clarify the Securities Ex¬
By Way of Review
curities from hampering and dis¬
general interest for the pur¬
criminating regulations. It was re¬
pose of review is the amount of
ferred to a subcommittee of the
long-term municipal security fin¬
Interstate and Foreign Commerce
ancing
(as
distinguished
from
Gominittee of the House appointed
temporary loans) during the ten
5%
1927,
ma¬
1928 to
15,
serially June
turing
of
District)—
Trustee vs Tom
The county had
Court
$294,090
been
District Court
the
in
entered
has
suit
1967 inc. and received a
premium
therefor. By order of
the County Commissioners' Court,
on
July 12, 1943, $212,000 of the
bonds maturing 1944 through 1967
of
$12,178
called
were
October
10,
for
1943
on
at par and ac¬
which date
After
interest.
crued
redemption
will
of
the bonds maturing 1948, 1953 and
1954.
The
plaintiff seeks
the
court's judgment on several points
The plaintiff holds $5,000
the
in
states,
notice
the
interest,
cease.
county's
and
procedure
right of the county to
force her to surrender her bonds
contests the
at par
or
Last
Seventh
spring a
in the.
for the banks
with a number of
The
District.
Reserve
form was issued after
^conferences'
investment bond
outline of
houses and banks as an
pertinent data to be assembled by
their use and infor¬
mation and that of bank examin-;
the banks for
ers.
■
There
are
general parts?
seven
of the summary
each with a num-';
ber of sub-parts:
•••>
1.
Description
7 7
Description of the issue.
2.
the
of
,
revenue
producing project.
3. Protective covenants and re¬
A
lated features.
ments
and
5.
entire
of
maturities
issue.
7
:
require-:
interest
Amounts,
4.
\
7
Earnirigs data and other in-'
for the four preceding
formation
',;7. /!
years.
6.
statement
Financial
the
of
includ¬
the tax levy and collection
issuing governmental body
ing
for
record
years.
7.
'
•
the
preceding
four
777
■
•
...
•.;
,
•!
Economic description of ter¬
ritory served.
-
As authorized at the June
Minnesota Legislation
■
information
to cease paying interest
orj'fheih to maturity.
change Act and protect the mar¬
kets for state and municipal se¬
Of
stances.
These
Association. As
June report. On June.
our
15th detailed advices were sent to;
Supreme Court of Texas
rendered an opinion on June 16..
ized
the four years
During
ing
Depositary
forth in
during
that court some time
Texas County
,
plans are fully crystallized.
ficial
.
proximately $310,000,000 New York
Transit Unification Bonds issued in
change for the securities
private transit companies.
of disposition of these
deposit with the Of-;
was
fully* set.
paperson
The
period may be or when it may be¬
gin or what economic or other
may
then prevail, it
ments have
been made to
ex¬ conditions
reasonable
to
anticipate
change pertinent information on. seems
the subject and we take this op¬ that in the four years followingto the members of the Investment
portunity of expressing our ap¬ the war. such municipal financing
Bankers
Association
in
giving preciation of the valuable and will be at a rate in excess of what
them an idea of the nature and constructive
work
"The
Bond it was in the four years preced¬
amount of the municipal financ¬
Buyer" is doing in this regard. ing the war, so that over 5 billion
of
long-term municipal
ing task that Will face them in the We direct attention to its report dollars
years following the war. A study en the
survey
as
developed to financing is in prospect. Should
of this nature is a sizable under¬ date which appears in its daily is¬ the post-war history of the first
World War repeat itself only in
taking and of necessity will be a sue of November 3rd.
continuing process until post-war
Legal Opinions and Transcripts ;
,was
the winter.
the sales for 1940 was ap¬
in
The
.
segregating the papers that are to
be sent to Chicago for storage, the
and
years
bonds.
of the
passed.
not
was
Appeals for the Ninth Circuit.
The case will probably be heard
provide a basis for some reason¬
able approximation of the amount
which may be issued during the
that will be
the next few
during
those
during
such legis-'
depositors. Due to
the amount of work involved in
b>
factors
fluencing
available.
municipalities developed
of
ouk
Maricopa County case has been
filed with the U. S. Circuit Court
ing during the past 10 years. This,
considered in the light of the in¬
additional programs
*
of interest to
for review and
be
you
of
seriously effect the
marketability
Bill
of
financed on a pay-
deletions, follows:
The states
and
before
7
■
Municipalities, as
sota
lafion 'would
also dis¬
cussed in our June.-report and ac¬
tion concerning it was taken at
the time by our Board of Gov¬
ernors. Since then the appeal,brief
in' the
State of Washington vs,
long-term municipal bond financ¬
basis
as-you-go
times greater.
y
Group
Minnesota
The plan
situation
,
opposed the Bill as.
did also the State Treasurer, of¬
ficials * of
Minneapolis and
St.;
Paul and the League of Minne-'
Maricopa County, Arizona
This
•
.
Association
B. Car¬
Thomas
D7 Winter,
Kansas; Charles A.
Wolverton, New Jersey.
.
the
,
in¬
of
evidences
such
by
The
■
Percy Priest, Tennessee;
roll
Reece,
Tennessee;
following
comparison, the yearly volume
plied to post-war requirements
from
reserve are being built up in numerous
funds, now being established, the instances. While some of the mu¬
committee reports that most of nicipalities are planning to pro¬
the plans it has received anticipate ceed on a pay-as-you-go
basis,
bond financing, coupled with ex¬ most of the plans received by us
pected Federal aid, and pointed anticipate bond financing. We are
out that "A free market for mun¬ presently summarizing the pros¬
icipal securities is obviously es¬ pective post-war financing as in¬
sential for. the development of dicated by the more matured plans
these undertakings."
Text of the now in hand. This information to¬
committee's report, with
slight gether with that obtained from
projects will be
also
may
<
California;
Lea,
ser, Ohio; Leopard W. Hall, New
York;
Oren
Harris,
Arkansas;
John P. Newsome, Alabama; J.
(1919-1922) was $4,206,-
000,000 or about
constructive
Reserve funds that may
that
and
$1,844,000,000
•' " •'
7
F.,
fixed
debtedness.
subcommittee
Lyle H. Boren, Oklahoma; Clar¬
ence J. Brown, Ohio; Robert Cros-
preceding our
into that war (1913-1916)
total
7: ';
,
Clarence
years
was
nave
are:
total
noted that the
be
four
the
entrance
adjustable
readily
the
nature
444,932,848
will
It
prosperous
received
will serve as a
to
as
programs
and
munici¬
palities which
larger
guide
1917
times.
In
many
cases,
the programs
provide for planning considerably
beyond the time which we hope
will prove to be the necessary
adjustment period. Most of the
well
post
States
497,403,751
the war
the
of
492,590,441
for
making a na¬
tion-wide sur¬
vey
445,905,510
1915—
1916—A
spective states or communities will
be able to meet the obligations
incurred -throughout difficult as
g e m ann,
a
1913—-$408,477,702
pared, based on real community
needs and confined to practical
ana
economically sound projects,
with financing such that the re¬
which H. Fred
Amount
1918— $262,818,844
1919J— 770,195,248
1920-— 773,663,986
1921—1,383,368,900
1922—1,279,553,134
Year
Amount
Year
and the total may
the post-war
The members of the
our
legislation.
securities
consider
to
period (1913-1922) surround¬
participation in World
War I. According to the "Record
of Municipal Bond Sales" issued
by "The Bond Buyer", the per
annum volume of such bond fin¬
year
ing
Thursday, December 30, 1943-
FINANCIAL CHRONICLE
THE COMMERCIAL &
2650
mandatory call
provision—House File No. 1373—
was introduced in
the Minnesota
meet¬
ing of this Committee, a Special
Committee was appointed to study
means
of
facilitating procedure
and to determine in
what way un¬
duplication'of work in
Allen of the House Appropriations supplying the information called
Committee. The measure {provided for by the form may be reduced
Legislature by Chairman Claude
that all indebtedness of the
or
State
governmental subdivis¬
thereof evidenced by bonds,
of any
ion
certificates
other
of
indebtedness
instruments
issued
or
here¬
payable at the op¬
tion of the authority issuing same
on
or
before the maturity date
after
shall be
necessary
to
a
minimum «or
eliminated en-,
tirely.
As this
matter, at least at pres¬
ent, is mainly in the Seventh Fed-,
eral Reserve District, the members
of the Special
Committee were se~
from cities
Those serving
lected by our Chairman
within that district.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4242
158
Main, Chicago; S. E.1 Johanigman
(Chicago), Milwaukee; Carl_.N.
Stutz,
Davenport;
Edwin
J.
Wuensch, Indianapolis; H. Fred
Hagemann,
Jr.,
Chairman,
St.
Louis.'
1
■>
The
Special Committee is
Board.
Mitchell
Mr.
previ¬
was
for
SECURITIES
S
...
,
War
Committee
fy;■;%,
,
•
New York,
in keeping with its
the largest city in the
country, has a very extensive
post-war
program
for
public
as
works
involving about $700,000,€00.
Mayor La Guardia, in sub¬
mitting to the City Planning Com¬
mission on Sept. 15 a report of
the Director of the Budget, said
in part:
"When
;
.
■
City's
:y'i[%
I
■
speak
of
:
York
New
Post-War
Plan, I am not
talking about pictures, drawings
or a
list of desirable projects or
wishful thinking.
New York City
has now on the shelf complete
working plans, specifications and
designs for $76,000,000 of public
works. That means that any time
we can get the material we can
go to work.
On $66,000,000 of ad¬
ditional public works, the actual
working plans are over 50% com¬
pleted,
On $348,000,000 more of
public works, the detailed work¬
ing
plans
have
•started, out of a
actually
been
program, as of
including 511 proj¬
ects, at an estimated cost of $697,000,000.
Since that time addi¬
June 30, 1943,
tional
projects have been studied
considered
•and
which)
together
with new projects to be submitted
by your Commission, will bring
the total well over $700,000,000."
Comptroller Joseph D. McGold■rick points out that the size of
•the post-war program was predi¬
cated on the hope—and it is cer¬
tainly no more tangible today—
there
^Federal
would
be
assistance
in
cost
relation
well
over
an
,
city can now look forward
prompt and substantial pro-
a
of public improvements as
gram
soon
as
the
war
ends.
The
plan¬
ning that is now going forward is
mot
•
vague dreaming; it is being
developed to the point of actual
blueprints and contract specifica¬
tions. The speed with which that
program
volume
be
may
that
pushed
may
contract at any one
planning,
Included
in this group are numerous major
projects of the Department of
Public Works:
sewage disposal,
underground drainage and flood
control, extension and improve¬
ment of the water supply service,
bridges,
elimination
of
grade
crossings, completion of railway
term i n a 1
improvements
and
on
others.
,
"Over
and
the
gate,
;
,
or
the
put under
time will de¬
be
many
beyond
this
Department
aggre¬
of
Public
Works offers the nucleus of
highway
City Planning Commission
consists of nine members.
'
Edward
Hopkinson, Jr., of Drexel & Co.,
Philadelphia, is
Chairman and
John H. Neeson, Director of Pub¬
lic
Works,
Commission
ulous
to
public construction, the
city will be ready with a carefully
studied program of essential needs
rather
than
a
possibly hasty
projects.
of unrelated
Vice-Chairman.
The
recently. engaged as
list
^
program reflects planning
period of six years after the
a
estimated expenditures
The
war.
method of
and
financing
be
Amount
Method
$411,000 Tax-supported
(revenues,
bonds)
serves,
,
or
works
works
plan
a
Saginaw,
An
extensive
improvement
prepared
water
—
improvements
the
improvements such
lines
sewer
and
others.
flexible
to
no
provi¬
does
Nor
ported projects, however desir¬
able, which would involve outlays
considered
an
intended
orderly develop¬
city, considering care¬
fully the taxpayers' ability to pay
for the improvements.
It is cal¬
it
construction
is
expected
upon
ulti~,
that
excessive—such
major series of grade-crossing
eliminations, for instance. On the
other hand, the)probable substan¬
tial volume of deferred mainte¬
nance,
wartime
which will
scarcities,
F.
Devin
result from
is
likewise
Plan¬
is
Chairman,^
Needed
improvements--
Desirable
$10,406,700
—
improvements
-
Water
Needed
8,868,000
,
Total
$19,074,700
Department—
improvements
improvements
$2,793,500
—
Desirable
Total
Fire
3,303,800
— —
.
Department
$6,100,300
;
909,250
Department of Lighting
2,810,000
—
Library
Park
'<
Department
Department
1,845,000
-i.—2,494,560
Building Department
—'
5,600,000
Mayor Devin's statement
the
on
culated to produce a maximum oi
subject, as quoted in the Seattle
"Municipal News," is so directly
in point that it should be read in
accomplishment at
connection with this outline.
cost
and
also
a
minimum oi
avoid stimulation
of the
intended
that
the
It is
necessary
"This
is all
more
expenditures for public improve¬
ment from year to year may serve
man
shopping, now our
really begins.
It is like a
town
and
his wife who
only the purpose of the mo¬
ment, but also the needs of the
stores
the windows and
capital improvement
I.
Projects
2.
Projects
to
be
General
financed
Water
to
by
FuncLx
572,77i
financed
by
Assessments—
"Reserve"
into
three
■.
5,122,432
projects
groups:
Group 1
14,221.20C
Group 2
1,054,500
Group 3
12.877.05C
Total
$35,017,13;-
division
The
of
"Reserve"
the
their classification in the order oi
their relative need to the city.
Ir
1 are preferred projects in¬
cluding those considered as highly
group
improvements
however,
until
cannot
down¬
are
evening
closed.
when
They
the
look
in
all kinds of
see
they would like to buy.
When they get home they get out
checkbook
and
the
family
budget and figure out just what
they have to spend, and what they
will have to earn if they want to
buy some of those things.
"The Committee's first job prob-<*
ably will be to meet with the City
Council
much
arranged.
others
lection
and
the
find
city
out
post-war projects.
"If
that
is
just
how
aside
set
can
time digging up
off the deficit.
for
The city had a
$2,500,000 to
any
pay
indication, that
$38,000,000 may' even boil down
to $5,000,000,
When we find out
what we can spend, then we can
figure out what we need the most.
which
undertaker,
be
of financing can be
means
a
the
are
things
projects into three groups reflects
essential
in
the
$1,169,176
financed
be
Special
divided
parts:
by
Fund—
to .be
pro¬
less in the
or
line of window
not
This
He
says:
work
for
streets,
the program include any tax-sup¬
now
a
long-range,
covering a pe¬
ment of the
water
construction.
been
is
nine years,
over
provide for
program
mains,
which would be required by an
unexpected rise in population and
housing
It
program
riod of
the
as new
and
has
program
William
Engineering Department-
capital
the cooperation of the Local Pub¬
lic
Works
Programming Office
4. So-called
in
made
Mich.
post-war
Mayor and the
City Council of Saginaw by Carl
H. Peterson, City Manager, with
the
pointed out that
is
metropolitan
for the
3. Projects
It is
Post-War
post-war plans totaling over $38,800,000, the larger of which are:
within the Miami
the
reserves
$2,306,000 Total of estimates
sion
its
to
is
area.
gram is divided into four
bonds-— water¬
and
submitted
ning Committee, of which Mayor
improvements
255,000 Revenues
program
$12,000,000
and the major part of this work
re-
90,000 Cash
1,550,000 Self-supporting
a
future.
may
briefly summed up as follows:
,
has
approximates
expenditure of public funds.
The
for
which
"Just what the Federal Govern¬
is
ment
going
question.
us
to
dollar for dollar.
be in
is
do
If so, we
position to add
a
another
Maybe they will match
will
proj-
more
ects.".
.
A summarization of the
mendations
recom¬
reflects:
Estimated
...
■
Purposes—
••
,
$18,515,700
Utilities
Public
Costs
-
Public Works
6,703,000
—
Public Safety
2,994,000
Public
Health
Public
Welfare
- '
2,101,025
1
Libraries
415,000
Total
—
The
470,000
104,100
School Board
Public
financing
of
the
pital, police, fire, park and sta¬
facilities, reconstruction of
Miami River crossings, improve¬
ment
of
existing
streets,
new
streets and sidewalks, extensions
dium
of
the
water
works
system,
Pan-American
center
and
The plans
for these projects
reported from 35%
to 80%
Bond
extension
issues
aid
aid
State
$23,095,925
—
(if
Railroad aid
granted)
facilities
1,092,300
are
500,000
'
417,100
Gas
400,000
(portion)-^—
L_
fully
now
complete
bonds validated.
and
the
It is
planned to
finance the cost of these improve¬
ments
1
Total
hospital
of the
where the plans and Specifications
Current revenue (portion
tax
of
case
are
com¬
5,797,500
granted)
(if agreed to)
(if
slum
follows:
as
$31,302,825
'
is
It
pointed out that the
city
necessarily adding to
without
can
the tax
burden
as
nance
much
of its
of
citizens
this
Amount
2,651,000 Special
fi¬
4,000,000 Method
of capital improvements as is pro¬
period of 10
years.
That portion
of the program which is proposed
be financed through Federal
to
aid will of necessity have to await
railroads involved.
of
the
program
Other proj¬
such
as
proposed to be financed from
rent
of
revenue
the
only
a
and
cur¬
apportionment
State gas tax anticipate
four-year program.
Durham, N. O.
-
is
A capital
improvement
;
;
Improvement Bonds
5,037,000 Budgeted, and contingent funds
2,650,000 Funds in hand
program
posed to be financed through new
issue of bonds, provided that part
of the program is spread over a
Form
$27,610,000 Revenue Bonds
to
be
determined
cost of
timated
there
$6,107,000,
In all
49 separate undertakings
are
the
within
$28,000,000
San
Its 1940 population (Fed¬
census) was 203,341. As of
years.
June
30, 1943, its population was
(based on OPA ration
books issued) at 385,000.
estimated
R.
C.
Lindsay,
O. P.
Bureau
of
the
Office
of
City Manager, says that the
may appear ambitious,
schedule
but
it
is
program
in
fact
a
conservative
to meet the demands of
community which has consist¬
ently led in population growth
in the past 25 years. Obviously it
a
will
be
impossible to start such
a
program complete at one time
as it will probably take 10 years
or more for the
completion of it.
Mr.
Hart
also
Miami's
program
of
public
the
scheduled
area.
for
There
munities
are
which
points out that
is only a part
works
this
program
metropolitan
14 suburban
have
a
com¬
consider¬
City Treasurer,
Miami
County
announced
9.5%
meat
supply
of
the
was
Dec.
on
country's
17
total
exported to other
countries under lend-lease
in the
first 10 months of 1943, as against
6.1% during the same period last
but in compensation
year,
lend-lease
verse
of
amounts
mutton
as re¬
substantial
beef, veal, lamb and
were
received from Aus¬
Zealand
New
supplying
are
most of the food requirements for
American forces in the Southwest
Pacific.
,
Washington advices Dec.
the
New
Beef
■
*:>
17 to
York,"Times" reported:
and
lend-lease
veal shipped under
during, the first ten
,
months totaled
1,2% of the
coun¬
the
11.7%
growth of government mili¬
tary plants, it has been necessary
to make heavy expenditures—ap¬
proximately $20,000,000 during the
past five years, of which about
50% was contributed by the city
from bond proceeds and from cur¬
about
sewer
In 1941 the city is¬
$6,300,000 water and
city
in
program
charter
was
adopted
1938.
long-term
a
Recently
amended
the accumulation of a
exported
was
in
1943,
as
against only 6.4% in 1942, and of
pork 15.6%, against 11.9%,
Expressed in ounces per week
per
United States civilian, 5.6
of dressed meats
ounces
were
ex¬
ported in the January-October pe¬
1943, as against 3.3 ounces
during the same period a year
riod of
'
Lend-lease
shipments
of
milk
its products, in terms of fluid milk
permit
capital ex¬
to
penditures reserve. It is estimated
that this will reach about $3,500,000 by July
Of lamb and mutton
riod of 1942.
earlier.
bonds.
The
1, 1944. Mr; Lindsay
that the city's rnajor
also points out
equivalent, were 3.3% of
supply—slightly
1942,
was
when
sent to
cheese
lower
3.6%
our
have
of
milk
than
the
Allies.
been
our
in
supply
Exports of
substantially
problem is the development of an
below 1942 shipments. In the first
assured water supply. While the>
city has expanded its water plant," 10 months of 1943 lend-lease ex¬
it may be necessary to go to the ports of cheese were 12.7% of the
Colorado River for at least an ad¬
supply; for the year 1942 these
ditional standby supply of water.
were 23.6%.
The method of financing such a
Relatively
small
amounts
of
project is in a very indefinite
and
status, as it would involve a con¬
butter
siderable
amount.
which
Seattle, Wash.
country, are being exported under
including especially
Beach, Coral Gables and
The Dade
Foreign Economic Admin¬
that
try's supply, or 100,700,006 pounds,
as
against 0.3% in the same pe¬
able program,
program Miami Shores.
The
points out that due to the rapid
expansion of the city as an air¬
craft manufacturing
center and
sued
Hart, Director of the Re¬
search
the
Total
Shipments 9.5% of Supply
istration
and
experienced a tre¬
growth in the past few-
Diego
mendous
Lend-Lease Meat
tralia and New Zealand. Australia
San Diego, Calif.
rent revenue.
$41,948,000 Estimated
"Reserve"
groups.
eral
plated improvements is based on:
Federal
a
clearance.
$31,302,825
contem¬
buildings, harbor, hos¬
city
age,
pleted except in the
ects
.
should evoke Federal stim-
ment
Administration
They include among
$4,000,000 for a sewage col¬
and disposal
plant; $5,omitted herein because it is con¬
mately $50,000,000 will be ex¬
000,000 for trunk and relief sew¬
sidered not a capital but an oper¬
pended." ■
:\ ;
ers; $1,121,000 for drains, and a
ating problem,' to be met from new source of water
supply in
Richmond, Va. ;
appropriate maintenance reserves
conjunction with Flint, Bay City
Post-war planning studies in the accumulated
during the period of and Midland of which
Saginaw's
form of a survey of physical needs war
shortages.
share would be $4,000,000,
and
financial
possibilities
of
Under group 2 are six projects
Richmond were made, at the re¬
Miami, Fla. Lquest of Mayor Ambler, by the
Miami's plans embrace 14 major designated as desirable and under
Department of Public Works, G. projects at an estimated cost of group 3 a substantial number of
deferrable projects, including the
M. Bowers, Director, and the De¬ from
$115,000 to $12,000,000 each,
partment of Finance, J. M. Miller, representing a total of $42,000,000. construction of a municipal power
Comptroller.
7-:a.>!
These improvements include sew¬ and distribution system at an es¬
of
which
or
Philadelphia, Pa.
The
,
as a
•
agreement with the railroad
'
thermore, if post-war unemploy¬
.
factors not at all the
development of such a Fed¬
easy to determine in advance and,
eral program of assistance. Grade
above all, it will have a bearing
separations, the construction of
on the annual expense budget of
which is proposed to be
financed
the city to which the Board of
solely at the expense of the rail¬
Estimate, the Council and the City road
company, will of necessity
Planning Commission will have to
have to await the consummation
give careful thought.
;
/
of an
pend
financial
our
position,
develop our program and get the
benefit of public reaction.
Fur¬
to
orderly
usefulness afid priority.
carry-
aid; fin post-war economic read¬
justment and a source of post-war
employment. Also, that self-im¬
posed and war-imposed restric¬
tions have
greatly strengthened
the financial position of the city.
This
and
projects already esti¬
to
$200,000,000, which must be evaluated
substantial
toward
ingnforward such program as
'to
needs
Nevertheless, it
■
"that
by
deferring
construction, continues Mr.
Yancey, now affords us an excel¬
lent
opportunity to
study our
begins functioning immediately as
the clearing house of listed de¬
mated
in
importance.
conditions
transcends the immediate needs of
partmental
New York City, N. Y.
and
most
$800,000 be made available in the
1944 budget for detailed survey
plans and specifications for needed
post-war and public works proj¬
ects
to
be
recommened
by the
the post-war era.
Report of the Municipal Securities
position
economically
'
APPENDIX
.
needs
the order of their
and
Hagemann, Jr., Chair¬
man; Fred M. Ackley, Clifford S.
Ashmun, Edward Boyd, Jr., Walter
Planning Commission from time
W. Craigie, Paul O. Frederick, D.
to time; Some plans have already
Ripley Gage, John G, Heimerdinbeen proposed for certain projects,
ger, Walter D. Kingston, W. E.
others are practically finished and
Knickerbocker, Chester W. Laing, on still others there is consider¬
Jr., Loomis C. Leedy, Stanley able work to be done.
G. McKie,
Lewis Miller, Frank
Mr. Neeson, Vice-Chairman of
H. Morse, Francis Moulton, Rus¬
the City Planning Commission and
sell
Olderman,
Augustus
W. Director of Public
Works, points
Phelps,
W.
P.
Sharpe, % Amos out
(excerpts from his article in
C.
Small,
F.
Kenneth
Ste¬
the "Philadelphia") that:
phenson, Carl N. Stutz, Harry E. »■ "The City
Planning Commission
Thurston,
Robert
C;
Webster, faces the task of
planning a Phila¬
Frederick
W.
Willey, Paul E. delphia of the future' that far
■
.
those
that
recommended
been
has
submitted to the
was
Council by Henry Yancey,
City Manager.
It is, Mr. Yancey
says, an attempt to determine the
long-term, outlook for the city, its
physical needs and financial ca¬
pacity, and to budget prospective
capital funds in order to meet
Salt Lake
City, Utah; Tacoma, Wash., and
Corpus Christi, Texas, in coopera¬
developed
plans
It
Fred
Youmans. '
City
organizations.
COMMITTEE.
■
for Durham
D.
ously in direct charge of the test
Respectfully submitted,
H.
Robert
Mitchell, formerly Chief of the
Urban Planning Studies Section of
the Natural Resources Planning
tion with their local officials
pres¬
ently studying the possibilities.
MUNICIPAL
Director
Executive
its
Harry E. Thurston; Detroit;
are:
John L. Kenower, Detroit; Chester
W. Laing, Jr., Chicago; Charles O.
2651
Ten
are
departments of Seattle have lend-lease.
canned
vegetables,,,
in short supply in this
pending toward inflation, to
mounting Federal debt and to
the burden of present taxes im¬
tors
Salesman's Corner
The Securities
Salesmen Should Have Support
And Assistance In
will be
good salesmen have the support of their firm they
productive, salesmen. Every dollar wisely spent uP°n Pre~
approach mailings, newspaper advertising, and direct mail follow-ups,
will not only add to their earnings but to the profit of the firm itself.
more
have heard salesmen remark that their'firm
advertising—that's why they hire salesmen. Now
it is possible that-good salesmen can go out and create their own
opportunities for doing business without anyone's help or direction.
However, these men usually have sufficient creative ability and
initiative to make them eventually independent, and sooner or later
they will leave and go into business for themselves. Most of the
progressive retail organizations in existence today are the outgrowth
of just this sort of situation. A good salesman seeing that he has
produced a substantial volume of business without the assistance of
his firm, eventually decides that there is no reason why he should
work on a commission and pay his firm 50% of his gross, so he then
either gets together with another such salesman, or starts out for
Occasionally
we
doesn't believe in
'
'
ried persons with dependents. '
Under
the
Senate
committee
take
be argued that this type of salesman will eventually
such a course whether or not he feels dependent upon his firm for
success. In some cases this may be so, but it would nevertheless hold
true that any firm which has salesmen who are self-starters on its
representatives
the
(House)
their
and
Committee
before
Means
testified
Ways and
appearance
reau
previous estimate
deficit.
:
$458,000,000 of that burden.
Whiskey, now taxed $*3 per 100proof gallon, will bear a $9 levy
its
000,000,000
"This
,
is
reduction
in
due
a
large part to the lowering of esti¬
mated Government expenditures
lines
certain
These
free
of
goods.
war
stoppages of output cannot
resources
immediately for
other
types
there1
are
of
and
production
instances
small-scale
and
of
at
least
1944
unemployment of both
'
resources.
of this,
view
"In
pear
organization.
,
.
'
■
fvV,
•.
'
a few con¬
ivith sales¬
There is one fundamental
consideration that we believe underlies the successful operation of
any such plan.
IT IS ALWAYS ESSENTIAL TO HAVE A SINGLE
IDEA, STICK TO IT UNTIL YOU HAVE EXHAUSTED ITS POS¬
SIBILITIES, AND WHILE YOU ARE WORKING YOUR CAMPAIGN,
in their efforts
men
IT
WHATEVER
to create business.
MAY
BE,
DO
SO
ENTHUSIASTICALLY, AND
THOROUGHLY.
it would ap¬
that income payments in
will be lower than the $156,-
it
Build
you
through to
Your pre-approach
and the conclusion.
the climax
Follow
should
should
only whet the appetite for what is to come. The salesmen should
bring in the dinner. That is why such cooperation by the firm will
bring results. In other words, both the sales assistance offered to the
men, and the efforts of the salesmen, are tied together into one
mailings (about'which we will have more to say next week)
set the stage. They should open the door for your men. They
cohesive effort instead of
channels
as
being misdirected into all sorts
is often the case.
of haphazard
■
campaigns and newspaper adver¬
tising, tie it all together. Don't have your salesmen out talking about
everything under the sun and nothing in particular, while you are
spending money in the newspapers or in direct mailings telling
people about a similar hodgepodge of generalities. Such a campaign
(if you could call it one) will rarely bring results sufficient to pay
So
if you
do believe in mail
for the-'expense
PICK
OUT
involved.
AN
IDEA;
^
•
PORTFOLIO ANALYSIS,
PROTECTION, A DRIVE FOR 100 NEW ACCOUNTS, INCREASE
IN
INCOME, A SPECIAL SECURITY YOU LIKE, POST-WAR
INVESTMENTS, or whatever it may be, and build your entire cam¬
use
of
of civilian
amount
was
goods may be
sharp
advices of Dec. 20 had the follow¬
at dangerously low level.
"Newsprint available to news¬
raised reported
cents
fraction thereof,
of the charge, or
paper
publishers in the first
quar¬
compared with the present one- ter of 1944 will be 23.6% under
cent-per-dime
rate, v Cabaret the 8o9,29o tons consumed in the
checks, now subject to a 5% tax, first quarter of 1941, the WPB
estimated. Newsprint quotas will
go up to 20%.
personal transporta¬
The tax on
tion, now 10%, is raised to 15%.
Taxes on local telephone service
go
proportion,
that same
in
up
be based on tonnages required to
print net paid circulation in the
corresponding quarters of 1941.
long-distance
calls from 20% to 25%.
and the new levy on
The
handbags become
15% retail tax; elec¬
tric light bulbs, now taxed at 5%
of the manufacturers' sales price,
subject to
in
burden
thought
fixed a sliding, scale
reductions, with the larger
papers required to make the deep¬
est cuts, as recommended by the
industry advisory committee find¬
ings publisehd Nov. 18-19.
of
Luggage and
increases
an¬
.
places of amusement were
to one cent on every five
anticipated."
any
scheduled
.
The committee said its decision
against
a
of 1,250,000 tons of
paper, The cuts follow recommen¬
dations made by industry advis¬
ory committees when the shortage
of paper became acute.
Associated
Press
Washington
saving
,
greater than in 1943.
"Together, these trends would
leave the inflationary gap smaller
than
nual
pulp production, the WPB said.
by. 50% to 100%.
The tax on furs and jewelry is The curtailment orders will bring
doubled, for a new rate of 20% of consumption in line with esti¬
the retail price.
In a last-minute mated production and preserve in¬
change,
admission
charges
to ventory reserves, which the WPB
total
the
inevitable,
appears
and will result in
The tax on ing to say in the matter:
"Paper consumption has been
beer rises from $7 a barrel to $8,
while the rate on wine increases running far ahead of war-reduced
a
order
use
"The order will cut the 941.000
tons used by
to 15%.
magazines in 1942 to
in 1944, the WPB
Book publishers, who used
for the next two years a carry¬ and cosmetics is boosted from 10% said.
Fed¬ 142,036 tons in 1942, wiil find their
over for
liability for either 1942 to 25% of the retail price.
eral
license
fees
for
bowling allocations for 1944 cut to 108,280
or 1943—the result of forgiveness,
A// y
jV'y
under the pay-as-you-go tax law, alleys and pool tables are doubled. tons.
The committee accepted $92,"The order will,cut 1944 com¬
of three-fourths of the tax on the
lower year's income for most tax¬ ^00,000 in House-approved postal mercial printing consumption of
payers;
;V'-\ rate increases but balked at paper by 220,250 tons, in compari¬
influenced
was
by
the
go up
The
individuals will be paying
many
rate
on
toilet preparations
711,500
tons
.
as corporation taxes are
concerned," the report said, "your
committee is in agreement with
the House bill that any increase
taxes should be by
way of excess profits taxes rather
than normal and surtax."
,r
ried
in
corporate
profits levy would
95%, but the
combined normal and surtax rate
The
excess
of 40%
would be retained.
approved
by the Senate
committee, the tax legislation is
paign around this one subject. Next week we'll try and get down to $144,000,000 higher than the form
cases on an idea for a combined mail and sales campaign with specific
in which it passed the House. The
suggestions for going about it.
>/,' %
higher yield of the Senate meas¬
As
ure
from
results
a
rise
of about
third
the
doubling
"So far
be raised from 90 to
INFLATION
1944
by newspapers, magazines,
paper
the/new bill,
under
limited civilian production, as now
the individual income tax
start a campaign, pick out your central theme.
around it somewhat like a composer constructs a symphony.
If
bill,
the
in
revenue
Whiskey, beer and wine purchas¬
ers
were
called on to shoulder
your
of the current year's
men
ditional
the
of
proportion
large
committee, the Bu¬
of Budget lowered by $11,-
before
in
for
ad¬
Higher excise taxes account
a
stand a better chance of keeping Its organiza¬ 900,000,000 estimated by the
themselves realized that a good portion of their Treasury. If any amount of steel
due to the fine service and the backing-up they received and other metals is released for
During the next few weeks we are going to present
crete ideas regarding means and methods of cooperating
'
Further cuts in the
book publishers and commercial
present the victory tax is 5%, less printers were ordered on Dec, 20
by the WPB. Paper tonnage allo¬
the $10,500,000,000 requested by a credit which amounts to 25% of
cated to all graphic arts indus¬
the
Treasury,
your
committee the tax for a single person; 40%
tries in 1944 is roughly 75%
of
was
influenced by the fact that, of the ta?c for a married person,
1941 consumption, the WPB said,
between the time the Treasury plus 2% for each dependent.
tion intact if the men
from their
products.
fourth of
payroll would likewise
success was
requirements..for pulpwood
tary
provision single and married per¬
posed upon the American people. sons would pay the same 3% tax,
"In arriving at its conclusions with no credit for dependents. At
'
It may
•
the
not to seek more than a
Creating New Business
If
Thursday, December 30, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
2652
rates.
class
the
estimated $74,400,000.
Rejection of that feature cost
Treasury an
with
son
1941
use,
mated."
the WPB esti;-V\
Locally delivered letters, now car¬
by
a
two-cent
-three * -cents
cost
stamp, will
the
under
new
bill, and the air mail rate will rise
from six cents to eight cents.'.
The Senate committee accepted
Officials of ten of the leadingthe House insurance companies of the United
almost without change
provisions
affecting
corporate
taxation. %,-/%;
The excess profit rate was ad¬
vanced from 90% to 95%, but the
combined
40%
existing
surtax rate of
retained
Also
normal and
retained.
was
was
existing
the
ceiling of 80%
over-all
For Fourth War Loan
with re¬
States have inaugurated plans for
the insurance industry's participa¬
tion
in
the
/
Fourth
War
Loan
drive/ starting Jan. 18, it was an¬
nounced
by
Gale F. Johnston,
Vice-President
of
the .Metropoli¬
tan Life and Chairman of the In¬
division of the War Fi¬
$500,000,000 in individual income
taxes.
Y'Y/Y:,
V spect to corporate normal, surtax nance Committee for New York.
and excess profits taxes.
"We plan to more than equal
The
following
regarding the
A previous item on the tax bill our record in the Third War Loan
Senate committee's bill was re¬
in these
columns when 30,000 Bondadiers were re¬
ported in Associated Press Wash¬ appeared
Dec. 16, page 2437.
The Senate Finance Committee made public oh Dec. 23 its formal ington advices, Dec. 16:
The adoption cruited from the ranks of the in¬
The
report on the new tax bill designed to yield $2,275,600,000 in addi¬
committee,
revising
the of the bill by the House was noted surance companies in New York
in our Dec. 2 issue, page 2206.
tional revenue.
A-A:/:
"Y'/YY';./
.'..A';/, .y
and total sales amounting to more
new
revenue measure passed by
The report estimated that the bill, in conduction with existing the House, decided to:
than
171,000,
with
the money
tax laws, would raise the total annual Federal revenue to $43,599,000,value of more than $43,000,000
1. Keep
the victory tax and
000 over a full year's operation. Individual income tax payers would make it a flat 3% on everybody's
ST
were realized."
be called on for $-364,900,000 more>
income over $624 a year.
Those attending the inaugura¬
(The
In his testimony before your comthan
at:
present,
principally
tion
House had .voted to combine the
meetings
were:
Raymond
through elimination of the 10% mitteee, Secretary Morgenthau in¬ victory levy with the regular in¬
Johnson,
Vice-President,
and
The War Production Board
dicated that the Treasury Depart¬ come
earned income credit.
Corpora¬
Hamilton Cook, of the New York
tax, and set up a minimum
stated on Dec. 21 that the largerment preferred a bill raising only
tions
would
pay
$502,700,000
tax to catch revenue from those
Life; A. P. Carroll, of the Equi¬
than-scheduled deliveries of Can¬
two to three billion dollars to one
more.- The rest would be made up
table Life; F. F. Werdinborner,
who now pay a victory tax but no
adian
newsprint to the United
which
wopld include more by regular income tax.)
by increases totaling $1,011,100,000
Vice-President, and Dr. M. B.
States in the first quarter of 1944
in excise taxes and
postal rate resort to a general retail sales tax.
2. Adopt
Bender of Guardian Life; Victor
the House plan to
will have no effect on the an¬
"Aside from its merits, about
boosts aggregating $96,900,000.
§
§
surance
,
Defends lew $2.2 Billion Tax Bill
Shipments For Deserve
v
abolish
The Senate Committee had ap¬
proved the bill on Dec. 16 but did
not report it to the floor until
Dec.
21,
the
day when
Congress
began its holiday recess.
which there
was
some
difference
of
opinion, the Treasury's position
in this matter weighed heavily in
the minds of the committee
bers."
The
'
come
3.
committee's
tax.
Leave
mem¬
come
•>
earned
the
used
now
income
in figuring
-
*
\.
credit
normal in¬
/
:
report, the Committee de¬
only seeking
present individual in¬
Com¬
tax rates unchanged.
mittee experts said the net effect
fended its action in
.
rates
of
individual
income taxes.
The Canadian
A
report
ac¬
of the changes" would be to in¬
knowledged that its amendments,
crease
anticipated
revenue
by
with
those
one-fourth of the Treasury's re¬ coupled
previously
$540,000,000.
They said income
quested $10,500,000,000 tax goal voted by the House, had "reduced tax
provisions of the House bill,
and also the proposal to freeze the area of renegotiation" under
designed to simplify tax law by
Social Security pay roll taxes at which the Government recaptures
combining the victory and regular
excessive
1 % for another year.
profits on war con¬
income taxes and by eliminating
The
• ' /
following
regarding the tracts. ;
the earned income credit, virtu¬
In
Senate
Committee's report was
explaining its. decision to
ally canceled out so far as raising
Social
Security
payroll
given in Associated Press Wash¬ freeze
additional revenue was concerned.
taxes at the present rate of 1%
ington advices Dec. 23; i
But when the Senators rejected
Discussing the Treasury's re¬ each on employers and employees,
the combination plan and kept in
quest for a bill that would bring instead of permitting an auto¬
provision
wiping
out
the
statutory increase to 2% the
in $10,500,000,000 additional, the matic
Jan. 1, the committee expressed earned income credit, there was a
report declared:
"Your committee was not con¬ the belief that "the present and gain of $600,000,000 in anticipated
revenue.
The victory change sub¬
revenues
from this
vinced that a sum as great as pro¬ prospective
tracted an estimated $60,000,000.
posed by the Treasury could equi¬ tax will protect the full and com¬
The proposed change in the vic¬
tably be raised at this time in the plete solvency of the old age and
survivors benefits fund."
tory tax would lower the amount
manner suggested by the Treasury
The report said the committee obtained from single individuals,
—that is, in the main, by higher
In its
nounced publishers'
"gave special attention to the fac¬ increase slightly the tax on mar¬
closed in
Butts, of John Hancock; Louis H.
allotments.
Prices Board dis¬
Ottawa on Dec.
19 that
pulp production for the first six
months
of
1944 will
be at
a
monthly rate of 252,900 tons, with
at least 200,000 tons available for
shipment to the United States.
This
contemplated shipment of
newsprint is far above the 182,000
of
previously
scheduled
tons
monthly
deliveries,
based on
earlier low forecast of
However,
an
wood cut.
the WPB
said these
increased deliveries will be bought
the Government
by
as
a
against possible shortages
last
half of
the year.
reserve
in the
This Gov¬
ernment's commitment to buy ex¬
cess
ited
Canadian
to
the
shipments is lim¬
three months
first
of 1944.
The
WPB
New.York State.
Chairman
that
the
better
the stock¬
piles, in addition to building up
also be
hedge against unforeseen
mili¬
Johnston
insurance
organized
fortified
explained
division
today
and
was
was
wifih the experience ob¬
tained in the Third War Loan and
that the
said that
the national reserves will
a
Schmidt,
of
Prudential; T.
E.
Lovejoy, Vice-President, of Man¬
hattan; Julian Myrick, Vice-Presi¬
dent; Walter Shaw and Oliver M.
Whipple of Mutual; C, C. Fulton,
of Home Life; Clifford L. McMil¬
lan,
President of the
General
Agents Ass'n.; Gale F. Johnston,
Vice-President; R. R. Lawrence,
H. L. Rhoades, H. C. Miller, B. J.
Dunne, all of the Metropolitan
Life, and KarTD. Gardner, direc¬
tor, Community Sales Division of
the .War Finance Committee for
would
Fourth
same
be
system of approach
maintained
in
War Loan drive that
practiced in the Third drive.
the
was
Volume. 158
Number 4242
THE COMMERCIAL & FINANCIAL CHRONICLE
.v
Municipal Mews & Motes
Puerto Rico Water Bonds
Scheduled for Market
of the
One
,
j Oklahoma Municipal
Financial
v
Resources
Water
bonds.
Part of this
issue will be placed
privately and
tric
revenue
the
balance, approximately $10,000.000, is expected to be offered
publicly by a group headed by
The First Boston
The
Puerto
sources
porate
public
of
Puerto
missioner
of
Rico,'' the
the
Com¬
Interior
of Agriculture
er
and Commerce
of Puerto Rico. The
Authority was
of con¬
serving, developing and utilizing
the water and energy resources of
created
the
for
purpose
Puerto Rico and for the purpose
of promoting the general welfare
of the island. > For these purposes
the' Authority
broad
has
been 'granted
by the Act of the
Legislature creating it.
powers
The
of
purpose
the
present
financing is the funding
tirement
of
or
outstanding
gations amounting to
approximately
re-,
obli¬
total of
a
$10,000,000,
and
12
and
U.
State
Second
San
Francisco
debt
of
have
ing
$20,000,000,
under
more
electric
Authority
outstanding
integrated
an
tem
the
than 90%
power
sys¬
control
do¬
of the total
business
of
the
gross
thority,
rived
of
revenues
the
from
balance
varied
the
Au¬
being
de¬
It
expected that eventually
is
services.
the
Authority
revenues
will
derive
all
its
from the development
of the entire
of
bonds
of
Several New
Jersey taxing units
recently obtained permission from
the
State
regulatory agency to
apply
excess
demption
The
of
Borough
authorized to
'
to
revenues
State
Treasurer
the
re¬
count
Seawall
nishing of
a
itself.
pur¬
chase of general refunding bonds
of 1941, maturing in 1957, 1958
Fourth
on
is
advises
assume
that
billed
to
A
revenue.
prove
"under
Year
of
War
little
before
the
Loan
remain
the
prospect for
seemed pretty well
score
1943
as
Market
But
it
of
years
the
and
dealers
drew
to
close.
a
have
been
been
annual
recently
$97,000,000
over
a
long period of
for portfolio
majority
companies
of
managers
of
he
and
banks,
to
Some
and
report for that period
gross
totals
net
and
v
the
the
ing"
of
there
the
1943.
would
a
as
be
statements
with
respective
dates
Cut $1
Interests who
proval
are awaiting
proposed issue
of the
the State of New York
fident
000,000
being
How¬
and
by
that
railroad
than
any
through the required stages of
bitration of thei^demands,
ar¬
peaceful settlement
a
looked
a
the
upon
gesture
the
Gov¬
little
as
since
and
was
more
the
same
em¬
same
but
quickly pointed out
real dispute be¬
there is
tween the
ap¬
by
the
were
no
and the
men
companies,
distinct
cleavage
Government aids and bu¬
rather
among
a
reaus, the War Labor Board hav¬
ing
sanctioned certain
the roads were
which
pay until the
tor
ruled
increase^
willing to
Stabilization Direc¬
that
would violate
such
increases
the "hold the
line"
rule..-
Seized By
U. S. To Prevent Strike
After all
con¬
but
three of the
five
000 shares of
offer
way
stock of the
common
Rochester Telephone
Corporation,
probably next week.
gross
registration
Securities
Commission
was
the
rail
wage
took
in
7 o'clock p.m. on Dec. 27 under
an
order, by the President issued
art
\
hour
earlier
as
a
means
of
pre¬
The walkout by the 230,000 mem¬
bers of the Brotherhood of Loco¬
motive Firemen and Enginemen,
Exchange
in
the nation's railroads at
over
venting interruption of the coun¬
try's rail transportation service.
neces¬
filed with
and
back
arbitrate
^ v
finally taken the matter
the
of
to
controversy, the War Department
;
for consideration. The
sary
$1,000,-
railroad
was
session this week and is believed
total
a
the
more
operating
brotherhoods
had rejected President Roosevelt's
to have
almost
invested
that
would be
cleared for the marketing of 380,-
up
indebtedness
the
other union group, have stood
by
the letter of the law and
gone
And it
the Public Service Commission of
respect to
their
of
consequence
Recognizing
brotherhoods,
that
Rochester Telephone Stock
Billion
reduced
in
1
carry¬
Gross Indebtedness Of
States
lines
strike threat.
view
a
The State Commission
The
the
,
expense
States
of
^
;•
.
analyst of financial reports.
;.
acquisition
Railway, Light &
the roads, j
"cull¬
or
time that these must go over the
turn of the year.
r;
r, 1
;
shown in the report, designed for
the taxpayer, the investor and the
were
$2,478,152,587,
inventory"
holdings with
over
awaiting
the "green light" from the Secur¬
ities and Exchange Commission, it
has
been
recognized for some
fiscal year.
the next
the
ployees will continue to operate
sizable propositions
eral
organizations
dollars
for
officials
is
This year has been running true
Council
the
normally
to form and though there are sev¬
the
in
left
and
ernment's action
to liquidating certain securities
and preparing to pick up others
once books are reopened.
budget, the capital
improvement budget, the city's
debt, its sinking funds, etc., are
cut
The volume of temporary obli¬
for
of "taking
Summary, consolidated and de¬
figure on that date to
$2,381,141,363. On June 30, 1942,
and
of
various
for
tailed
net
$3,034,484,944
respectively,::
of
over
$2,963,706,129 and accumulated
in the sinking fund for the
the
balance
members
millions
last, stood
indebtedness
financing will provide for
funding or redemption of
$10,000,000 of outstanding
than
interval
That
would
Fund at June 30,
contended that
issued
of
small
a
to
This
the
They
steer
spent going through the process
the
for
Fund
that there
stated
General
by Comptroller
Joseph D. McGoldrick. The gross
at
General
be placed
balance
would be worked out.
ing two weeks.
$185,041,-
were
approximately
the
be offered to the public.'
cluded that
institu¬
large
clear of the market in the clos¬
At the time of his estimate
the
troller
$97,011,224 in its
funded debt at June 30,
receipts
with
ignor¬
ing the arbitrary" action of other
unions, investors apparently con¬
established
tional buyers, such as insurance
fiscal year 1942-1943 the Comp¬
net funded debt in the fiscal year
ended June 30, 1943, according to
the
privately
great
a
has
precedent
fiscal year was $184,700,000, the
actual
of
in
balance
that
Rail Seizure and Bonds
there
any
prospective, issuer
might hope for so far as prices
and yields are concerned.
Expenses;
Fund at June 30, 1943,
$341,075. In other words,
that, while the estimate for the
City of New York effected
reduction
the
ar^
Power Co.
agreed on that
conditions
quite all that
was
City's Net Funded
The
a
that
revenue
Treasury's
Drive,
Underwriters
un¬
General
any respon¬
respeqt to the fur¬
legal opinion on any
Debt Reduced
tions
the Puerto Rico
the
of
half of the total will
debts
fortnight
a
issue
activity
has
taxpayers
a
as
shown
as
shows
075.
N. Y.
$20,000,000
bonds of tlje Puerto Rico Water
Resources ; Authority.
Indica¬
Investors in railroad securities
in the corporate bond
failed to become
panicky upon the
field during the first month ofV announcement that
President
1944.
Roosevelt had ordered seizure of
modified
a
Thus; the tax levy
The Comptroller's report also
up
The
gations outstanding on June 30,
outstanding bonds.
i 1943, reflected an increase of $2,of Tuckerton was.
1800,000 over the aggregate at the
expend $18,900 (inI previous June 30 date, the figures
eluding $900 premium) in the
up
the New
launching
Mr.
collectible, provision is made for
future losses first, by an appro¬
priation to the Tax Deficiency Ac¬
of the bonds.
the
Arrange Debt Redemptions
made
noted,
part of this levy may
in¬
the
offering is made
the
redemption
New Jersey Taxing Units
be
that this state¬
says,
will
than
more
after
the total of the taxes
included
been
assets
and sale of electric power.
pass
single
its ap¬
,
the
island. The electric power busi¬
ness
constitutes about 95% of
is
actually
will
and
power
unified
making
since there
little
and, secondly, by transferring to
same account the surplus real¬
from the operation of the
Sinking Fund. The majority
of the bonds being offered, Mr. budget, mainly savings in appro¬
Johnson says, are in coupon form priations.
The
surplus
in , the
and those in registered category
budget is required by law to be
are
so
identified in the official applied against the Tax Deficiency
tabulation of the offering.
Sep¬ Account, and this was done by
arate bids are required on both resolution of the Board of Esti¬
of the lots to be sold. The bulk mate Nov. is, 1943.
sibility with
total
issue
a
as
the
Company.
On
this
financing
a
appropria¬
This, however,
ized
State will not
have
of
should
accrual basis.
wall
State
will
on
It
Sinking Fund and $633,000 held
by the Third San Francisco Sea¬
Rico Railway, Light and Power
of
is based
ment
Treasury bonds,
$1,947,000 held by
much
to
pearance.
And
McGoldrick
S.
destined
.so
bond
new
3-9137
balances
levied.
cluding
for the acquisition of the Porto
completion
without
on
System Teletype: RH 83 & 84
cumbered
$2,580,000
municipal
and
appeared
year
VIRGINIA
tions for 1942-1943.
.
.,
total of
a
on
California
the current and final week of the
June
Johnson, State Treas¬
is asking for sealed bids un¬
til Jan.
potential issuers and
investors
directing
their efforts chiefly toward the
customary tail-end adjustments,
some
Charles G.
urer,
RICHMOND,
Telephone
$2,580,000 Bond Holdings
,
With most
CRAIGIE&CO.
Bell
California Seeks Bids On
of
A banking group is now pre¬
paring the groundwork for a
institutional
F. W.
gen¬
in
units in the State.
Govern¬
of The
The Au¬
Puerto Rico and the Commission¬
of
as
interested
thority itself consists of the Gov¬
ernor
is
survey
should be very
Re¬
Authority is a body cor¬
and politic constituting a
People of Puerto Rico.
REPORT
MUNICIPAL BONDS
information
The
the
in
may come in for an early test of
its staying powers.
CAROLINA
Survey,
30, 1943, and
helpful to all those
checking the finan¬
cial status of the various taxing
erally
Water
Corporation and
instrumentality
mental
contained
Co.*
Rico
Financial
Oklahoma.
in
Corporation and
B. J. Van Ingen &
REPORTER'S
NORTH and SOUTH
which
contains a wealth of data pertain¬
ing to the debt burden, assessed
valuation, sinking fund and popu¬
lation
of
the
various
counties,
cities, towns and school districts
Puerto
evidence of good de¬
recently, especially for taxexempt State and local obligations,
mand
.
VIRGINIA—WEST VIRGINIA
Compiled
showing
OUR
'
on
of the 1944 edition of their Okla¬
homa
Rico
Authority elec¬
of
$20,000,000
Data
R. J. Edwards, Inc., Oklahoma
City, Okla., announces publication
pieces of financing
likely to reach the market early
in January comprises an offering
of
Wire Bids
265£
October,
$85,060,000 and $82,260,000.
ever,
the temporary debt out¬
standing at Nov. 30, 1943, was de¬
$1,500,000,000 of surplus funds in
Federal
bonds
during the year
1943, according to Frank Bane,
ferred stock and 1,000 shares of
of
creased to $60,610,000 as compared
payment of the bonds will result !
with $73,160,000-on the same date
in saving to the borough of $10,760
I in 1942;- or a reduction of $4,550,in interest charges. The Township
! OOQ/nThe .extent of the city's im¬
of Delaware was empowered to
proved fiscal position in the past
purchase, at par, $21,000 3% bonds
decade may be judged from the
maturing Dec. 1, 1944.
fact that on Dec. 1, 1933, its tem¬
Under a proposal approved for
porary debt, representing borrow¬
the Town of West New York, the
ings against anticipated tax col¬
municipality will retire $^00,000
lections, amounted to $183,814,000.
Executive Director of the Council
old
Union
of
of
and
1959, these being the last ma¬
turing bonds of the issue.
Pre¬
cago,
Bane
.
4%
bonds
dated
Feb.
1,
1941,
The
which mature in the years 1958 to
1960 and become callable
1, 1944,
on
Feb.
on
30 days' notice.
To
ac¬
complish the debt retirement, the
town will issue
$600,000 temporary
refunding bonds bearing date of
Feb.
1,
1944,
Aug. 1, 1944.
and
to
mature
j
on
city
lecting
91.66%
levied during the
period,
highest
the
troller
urer
the
towm
This
ow¬
money
held by the State Treas¬
and its
reported.
It
1943
re¬
distribution
is be¬
ing restrained by litigation.
It
is anticipated that the litigation
levy
and
said.
amounted
to
$483,940,316
reached
$443,-
year's levy of $469,-
was
received.
Bane also
of
j
oil
leases
of the fiscal year
braced
the
State Treasurer will be en¬
1942-1943.
This
abled to distribute the approxi¬
surplus amount is composed of the
gain of $446,975 in the exten¬
mately
sion
be
$20,000,000
which
is
to
paid to various taxing units
State.
in the
flat
the
on
tax
rate
mal rate,
tax
rolls
instead
of
of
the
and $6,596,846 of
the
deci¬
unen-
public lands
on
which
otherwise would not be subject to
1944
termination
on
;Dec. 23 that President Roosevelt
had signed the'legislation extend¬
ing until Dec. 31, 1944, expiring
renewal
its
pears
aries
fields.
because
now are
of
Senate
o;i
lands
em¬
within the bound¬
producing
The
resolution
the
Dec.
for
as
public
and
if
offer
subscrip¬
the
sanctions #the
i";"" '•>
&
State
pro¬
VL'
is
that
Power
Treasury's war
of the Florida
&
of
securities.
Light Co., which plans
refinancing involving $55,000,000
new
'
■
The matter is now before the
Securities and Exchange Com¬
mission and it is expected that
if approval is given within the
next few days the company will
call for bids to be opened prob¬
ably
on
Jan, 10 next.
Securities involved here include
$45,000,000 of
000,000 of
fond hope
new bonds and $10,debentures. It is the
of
the
several
cates
preparing to seek the
ities
that
secur¬
the
or
gas
the
Municipal Prospects
9
the
and
It looks
bond
ps
though the
market,
which
America
sched¬
today
(Dec. 30),
called off yesterday.
The
two
a.m.
operating unions,
of
Railroad
the
Train¬
men
and
the
Brotherhood
of
Locomotive Engineers, which had
withdrawn their strike orders on
Dec. 24 and submitted their dis¬
awarded increases of 9 cents
hour,
an
which
represented
the
4-cent raise already approved by
Fred M. Vinson, Director of Eco¬
nomic
Stabilization, and an added
equivalent of or in
5 cents "as the
lieu
and
of"
claims
expenses
for
overtime
while
away
pay
from
home.
President Roosevelt's order of
Dec. 27 to Henry L. Stimsori, Sec¬
retary of War, directed him, to
take possession and control of all
railroads, express companies^ ter¬
minal
companies
and
sleeping,
parlor and private car companies,
but not street car companies or
local
public transit systems.
Just
an
hour
before
President
syndi¬
passed
House approved it on Dec. 14.
North
6
Brotherhood
were
rivalling bids will
be respectably close.
oil
was
of
for
pute to the President's arbitration,
Light
large issue which ap¬
destined to clear the hurdles
in advance of the
,>«.<
.•
The White House announced
The/ report shows a surplus of
$7,0431821 in the budget operations
upon
'
interests
The next
pro¬
Signs Oil Lease Extension,
J
when
Florida Power
t-
;
balance
Commission
development
and reconstruction.
uled
and propose to
gram..
agency
on
«
will be disposed of by the Court
of Errors and Appeals early in
and
post-war
500,000 shares
common.
pay
an
work
par
Rochester
financing
had
at
$10
common
tion
reported that in
State
every
grams
Comp-1
1942-1943
In 1935 only $392,707,-
of the
370,548
the
The
collections
562,825.
506
collected,
was
of the
the
administration."
commission
or
continuance of the im¬
a
new
recommen¬
urged^that States
Mr.
Comptroller
years,
1935, when only 83.67%
levy
to
State
in
proving trend in tax collections
redeemed out of the $894,000 in
now
20
followed
into
common
new
Certain
surprising uniformity, the
have
the Order of Railway Conductors
America and the Switchmen's
would retain 120,000 shares of the
off
debts, restrict new expenditures to
essential war activities, invest sur¬
pluses in War Bonds, maintain tax
rates and economize by
improving
the
collections
Press dispatch frofn Chi¬
dated Dec. 25, quoted Mr.
saying:
which
col¬
representing
Asso¬
as
States
1942-43 fiscal
of
An
dations first made by the Council's
Tax Committee in December, 1941,
taxes
rate
McGoldrick
flected
the
this
past
second-class railroad taxes
ing
of
in
Governments.
"With
that has been in evidence since
..
These latter securities will be
is
succeeded
State
ciated
disclosing plans for reclassifica¬
tion of the 48,140 shares of pre¬
Roosevelt issued his executive
or¬
unions called off their threatened
municipal
has been
der, the 1,100,000 employees
resented by the
strike and
to
rep¬
15 non-operating
expressed
a
willingness
accept an arbitration award.
(standing which would be
Proposes Permanent Peace Structure
Smuts
in¬
an
Insurance Cos. Operate
In infer-State Commerce,
Biddle Contends In Brief Filed In Supreme Court
dispensable condition for future
(world peace. . . ."
Organized By U. S., Britain, Russia And China
In
conclusion,
at
Smuts
Marshal
"We
said:
Thursday, December 30, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
2654
stand
great
a
mo¬
Biddle filed on Dec. 28 with the Supremeinsisting that insurance operates in inter¬
state commerce; he made this statement in furtherance of an effort
to have the Court hold that insurance companies are under the
permanent peace structure for the whole world may be built, was last the stage has been reached Federal anti-trust laws. The arguments in the case in which the.
made on Dec. 28 by Field Marshal Jan Christian Smuts, Premier in our human advance when this
Government seeks to prosecute nearly 200 Southeastern fire insur¬
of the Union of South Africa, speaking by radio from that country. problem
of international organ¬ ance
companies under the Sher-Av
ization and security against war
The
adoption of a "realistic^
man Act for allegedly conspiring
world is rapidly emerging from must be solved or mankind and
spirit" and an avoidance of "novel
to
fix rates and premiums
are
the'old territorial partitions, and its
civilization may perish.
departures" in the maintenance of
scheduled to begin Jan. 10.
from the point of view of war
Not only would it be stupid and
future
peace
and security was
In Washington advices, Dec. 28,
there is no sacrosanctity in conti¬
cowardly,. it would in fact be to the New York
suggested by the 73-year-old Pre¬
"Times," it was
nents, no security in oceans, no suicidal to evade the task before
Subscriptions
by
commercial
mier, said the New York "Times,"
stated: Y Y; YyYs/YvY;'Y-vYY
banks—those
accepting demand
as
he
outlined an organization safety behind rivers and moun¬ us—the task to make" this world
"The arguments will come at a
tains.
The war is burning that
deposits—for United States Sav¬
safe for our children and for the
based on the existing framework
time when legislation is pending
fact into our consciousness with
ings Bonds of Series F and G
of the United Nations. According
principles we hold dearer than in both Houses of
Congress spe¬
a force which no wishful thinking
may be made to the Federal Re¬
life itself.
The call has come to
to the same paper, warning that
cifically stating that insurance is serve
could undo, calls for a fundamen¬
Banks, beginning Jan. 1,
the neglect to provide adequate
us, a trust is imposed on us which
not subject to the anti-trust laws.
tal reconsideration of our inter¬
while subscriptions to the 2V2%.
it will be our duty and honor and
force to fight aggression put the
"So
far
the
Government
has
national
outlook
and
practice.
world at war, he described free¬
privilege to obey and fulfill.
We been defeated in its anti-trust suit Treasury Bonds of 1965-70 or the
appears to me, is the have
21/4% Treasury Bonds of 1956-59
dom unbacked by force as "a mere Such, it
already decided that there
against the Southeastern Under¬
may be made during the period
shall be an international authority
illusion" and democracy without great lesson of this war."
General
Attorney
The story of
proposal that the United Nations, led by the Big Four—the ment in history.
United States, Great Britain, Soviet Russia and China—be organized this generation, with its two ter¬
rible world wars, proves that at
as the foundation of a free new world on which, in due course, the
A
Court
141-page brief
a
Bank Subscriptions To
Fourth War Loan Bonds
leadership
boundaries
destroyed or overcome by
science,
neighborliness,
or
the
"good neighbor," are not only
ethical concepts but are rapidly
becoming economic, political and
international concepts of human
being
Y'Y
.
international
With
than
"weaker
as
water." ■"
Likewise, the "Times" observed,
the Premier emphasized the ne¬
writers Association. Federal Judge
for peace and war.
to
And
we mean
follow this decision up
covenant which this time
to
with
Marvin
E.
a
Jan.
that
held
Underwood
we mean
keep, and if there is to be any
Court has
Supreme
the
strued
business
insurance
18
such
'unequi¬
vocally and unambiguously' con¬
the
15.
However, all
will
000,000
Fourth
the
of
goal
be con¬
$14,000,-'
the
of
outside
sidered
as
Feb.
to
subscriptions
War'
Loan Drive and will not be con¬
war in the future it will be only
provision for
neither
interstate
or
intrastate
sidered a part of any quota under
for the purpose of vindicating and
power to enforce action by the
commerce and thus not liable to
Treasury regulations for the cam-!
United
Nations.
"Without the
protecting this solemn covenant anti-trust prosecution.
The De¬
behavior which we violate only at
force which; they will command
and
paignY
I
perpetual peace charter of
partment of Justice appealed to
our peril, the Marshal continued.
Yin making known Secretary of
and the unity in leadership which
our race."
the Supreme Court.
"Please, do not misunderstand
the Treasury
Morgenthau's ad¬
the^. could provide in an emer¬
"There
is no
secret that
the
me.
Woodrow Wilson did not
vices in the matter on E?ec. 27,.
gency, the period after this war
Government
would like to see
favor, nor do I for a moment ad¬
Allan
Sproul, President of the
may be followed by the same er¬
President
such a decision handed down as
cessity for making
ruined the last vocate,
ratic course which
•
ignores the existence and
the essentially beneficent role of
nations in our world order,
peace," he warned.
Reporting Marshal Smuts' views,
the New York "Sun" (from which
the
first
paragraph
above
is
Overruled
outlook
international
an
which
.
We shall leave untouched the
.
.
na¬
tional
Federal
soon
WLB In Steel Case
possible,
as
the
should
for
in
business-moved
surance
Wilfred Sykes Charges
letter
in
a
banks
in
the
of
Bank
Reserve
York,
Supreme Court hold that the in¬
New
New
commercial
to
York
Reserve
com¬
District says:
the Government thinks, it
would have a significant bearing
on the fate of the bills pending in
merce,
-.
.
'• i•
.
.' Y :,
•
Subscriptions by such banks for
sovereignty of the State
their own account to the issues
Wilfred Sykes, President of the
Four
referred to above may not exceed,
responsible
for- the and all it legitimately implies— Inland'Steel Co., charged-on Dec.
Congress.
/\
in the aggregate, 10% of the sav¬
leadership and the defense of this territory, flag, language, culture, 28 that President Roosevelt had
"Mr.
Biddle
argued that the
political and administrative insti¬ again overruled the War Labor
new international authority, which
ings deposits (as defined in Regu¬
country-wide «scope and magni¬
tutions—in fact, all that the term Board
lation. Q of the Board of Gover¬
he
suggested
as
a
temporary
by promising steel work¬
taken), stated that the Big
be
would
?
'self-determination' connotes. But
building of a
for the
framework
permanent international organiza¬
tion, into which neutral countries
would be admitted.
For the de¬
feated*
Smuts
ternational
suggested
a
.
maintain
will
and
law
of
peace
guarantee to each State the
neaceful pursuit of its own life,
free from fear of aggression by
and
under proper guard¬
valescence"
regime
which
order
Marshal
period of "con¬
powers
enemy
and above all will be an in¬
over
tude
that
adjustments
made in new agreements shall be
applied retroactively to the date
ers
when
wage
any
have
would
contracts
ex¬
; i
,
the
insurance
industry
of the Southeastern fire insurance
pired; this was reported in Chi¬
cago
advices to the New i York
"Sun," which further said:.
of
placed it within 'the limits of the
Federal; Commerce
power.'
He
said that to concede
exemption
companies from the Sherman Act
would let them 'continue, to
.
any
companies
which
to
'
; " 'The fire ! insurance
business
'-would - not^ exist in-- its * present
that
noted
magnified
with
form,
the
geo¬
graphically diversified risks which
its
insure
solvency, if it
for the continuous
nels 'of
the
transmission
information;
not
were
of the chan¬
use
interstate
for
commerce
of
papers
instructions,
r
money,'
and
Mr. Biddle argued.
disappeared
as
a
Great
with
realism
"mix
Power, along with Italy and Ger¬
and
many.
our
dom.";
■■
Marshal's
The
cast
in
Service.
them
the 87th anni¬
obsessions
the
on
can
wait until they have
can
their
of
cured
been
in the
organize
and secu¬
join in due
while the defeated enemy
Powers
of
peace
Neutrals
course,
Foundation, at 8 West 40th St., by
Mrs. Quincy Wright, of Chicago,
President of the foundation. Ralph
and
future
for
rity.
from the Memorial Li¬
the Woodrow Wilson
Wilson,
Nations
United
of the birth of Woodrow
versary
brary
on
existing
already
group
for
made
was
he said, "we shall
the
peace
with the
commence
of
Award
tvYs'Yi -yYY :.YV
In this way,
the Woodrow
Distinguished
The presentation of the
acceptance
award
broad¬
network, was
the NBC
over
Wilson
speech,
idealism
provide leadership for free-
dangerous
distorted
outlook
A period
of
and
world.
con¬
valescence under proper guardian¬
Close, Minister for South
ship will do them good, and mean¬
Africa, received the medal in be¬ while the 'United
Nations, already
half of Marshal Smuts. Y'
Y'Y" Y
existing in fact, can be organized
William
The Marshal said he valued the
medal
but "as
and
of
as
not only
a
a
as
link with
great honor
a
great leader
great and poignant period
history and of my own life."
a
In tribute to
the foundation of the new free
Woodrow Wilson he
world
structure
peace
world
which
on
can
the
permanent
whole
t,he
for
be built in due course."
He
proposed; that within
democratic
organization of
to
Marshal
of
preserve-
Smuts
said
going too far,
as
•
*
U.
"The
S.
for
this
Premier
recognition
and
A.
S.
Commonwealth
explicit
enough in imposing definite obli¬
gations for the preservation of the
peace," declared the 73-year-old
.
Mr.
that
said
Sykes
the
unquestionably of
/ •••
Y;Y: ; Y
are
interstate commerce." "
S.
R.
and
of
are
the
British
Nations
and
marked
out
this
re¬
"2.
for
cents
total
shift
ond
crease
when
shift
afternoon
the
cents
for
27
and
cents
the third
operations
demand
is
an
Union
of
.
South
sponsibility
them
may
in¬
Thus
17
A
to
above,
en¬
are
separate f application,
should be submitted for each issue
in
oL which
respect
subscrip-.
a
lion is to be entered. Subscriptions,
Savings Bonds of Series F
or.
Series
G may be made on and;
January 1, 1944. Such bonds
will be dated as of the first day
after
month
of
the
received
bonds, of
which
in
by lis;
such
payment,
accordingly,,
series
dated
as,
the
payment
by
panied
opened
Street
been associated
of
management
Mr.
with
has
Grady
the firm for
in the Chicago office.
YYyy!\'/YY'y.;Y;
on
of
1965-70
of
full.
the
Ins. Stocks
Prospects
leaving
view"
Geyer
being distributed by Huff,
& Hecht, 67 Wall Street,
Treasury
may
made
be
during the period January 18 to
February 15, 1944, both dates in¬
be
The current issue of "News Re¬
21/4%
and
1956-59
of
Bonds
Each of these issues will,
clusive.
increase of 22
pay
the
Grady.
many years
V;Yy
Severance
office at 523 West Sixth
an
under
Lowell
cents
sold
date
plus
par
from
terest
the
at
February
in¬
accrued
1, 1944, to
payment is received
by(
accrued, interest,
that
usf except
New York
City, contains an inter¬ is waived on $500 and $1,000 sub¬
addition to esting discussion of recent hap¬
scriptions. Y/'/YY^
X-} • Y Y- '.Y,.
vacation pay, of equal amount. ; ; penings affecting insurance stocks
Y The
regulations
governing
"6. Annual vacation pay for all and their prospects for the future.
Copies of this "Review" and a bul¬ United States Savings Bonds pro¬
men in the armed services*
;:
"7. Free industrial clothing and letin of current news -on various vide that such bonds may not be
"4.
Increased vacation pay.
"5.
Sick
leave,
in
insurance issues may be
Y:Y
Y-'./Y-::
had from
the firm upon request.
cordingly," bonds of ,-Series
Members Of N. Y. S. E.
Exchange,
L.
Buchanan
G
Series
H. L. Buchanan Co. To Be Year-End Valuation Of
H.
collateral;
hypothecated ■/ as
.
be
for
referred
sues
closed.
LOS
continuous,
for
not
hour. Y-./Y
total
shift.
are
but for an average
cents
10
and
shift, or 22
increase for the sec¬
night
the
of
and
,
first day of January are.
desired
a
subscription, accortt-.
!
Co.,
120
Greenwich Street, New York City,
members of the New York Curb
leadership
<
-
ANGELES, CALIFj—Har¬ issue price must be in our hands
ris, Upham & Co., members of the
not later than January 31.
Sub¬
New York Stock Exchange "and
two years.Y<-Y..; YY,Y.Y-. /.■
Five cents extra per hour other national
Exchanges, have scriptions to 2 V2 % Treasury Bonds;
next
the
G-l 944,. combined.
/Copies of our.application Form
No.
6,; for use
by commercial
banks in submitting subscriptions
for their own. account to the is-,
•
of
that every man
now
in the payroll will have 40
hours of work per week for the
for
and /Series
if
"l.A guarantee
'
price), whichever is less. No such
tank may hold more than $100,000; (issue price) of United* States
Savings * Bonds of Series F-1944
is
new
following:
"3.
defense, and to
added China in
her inherent im¬
Africa.
"And so in the end the portance, her heroic resistance to
door was left open for the greatest Japan and her new leadership in
and most destructive world war of
Asia," he said.
"Systematic co¬
history.
\
operation between the Big Four
"The essential oneness of our may build up a cpmmon under.
contract,
demands include suck items as the
.
U.
the
workers, in addition to
increase and other
wage
peace,
the
of
coal
substantial additions to Costs!" YY-Y
.
enough.
clear
steel
the
specific responsibility for main¬ equipment. •
; V'8. More holidays."
that instead taining the peace, at least in the
interim period.
Y • - j:
some critics
the
have objected, the league covenant
did not go far
"It was not
all
activities/ which include
the performance of the insurance
increases to
two wage
the
the employment.
said, "the human vision which was
United
Nations there would be
his, which is his legacy to the
a Council and a
General Assem¬
world, which is in a deep sense
the message of the New World to bly on the existing league model
and that, in addition, a definite
ithe Old, still remains."
J Reviewing the tragic history of place beinassigned to thegreat
Powers
the leadership, /with
the League
of Nations and its
failure
been
have
"These
Since then there
at the 1939 level.
by
supervisory authorities prior
to
the date of subscription for
such
issues, or $200,000
(issue
to/
.
have
statement required
recent call
the
.
YYY >YY;,Y/yYYY:
union had made 22 new demands
to
the
international
in this ad¬ extended
—including the equivalen®6||ai
dress, in contrast to the one de¬ sphere with the appropriate ma¬
22-cents-an-hour increase -— and
livered last month to the United chinery for punishment."
said that the impact of the de¬
Marshal Smuts admitted that
Kingdom branch of the Empire
mands on steel costs would be
Parliamentary Association, Mar¬ the founders of the League of
staggering.
■
1 *
- - ;,«. f* \ /• .
shal Smuts specifically mentioned Nations were perhaps dominated
"No steel company could ac¬
China as a leader in the proposed by realistic
expectations "badly
international organization. In the out of tune with the hard realism cept these demands without large
in
prices,": hesaid.
earlier address he characterized of the times" and suggested that increases
France as a nation which will, this time it will be necessary to "Steel prices were frozen in 1941
28 went on to say:
was
Reserve
shown on the bank's
of the date of the most
as
as
*
coerce
sought
ianship until they could be cured its neighbors; in fact, a regime
He (Mr. Sykes) declared that: compete with them on a rate basis,
of their "dangerous obsessions and under which the aggressor will
the WLB denied the union's peti¬ to boycott: any agents and cus¬
.distorted international outlook." be an outlaw to be dealt with
tion for a retroadtHe declaration
tomers^ who had the temerity' to
The account in the "Sun" of Dec. by the international authority as!
of
ahead
bargaining
after ' the deal with such competitors. :.
'
such.
The criminal law will be
It
books
Federal
the
of
nors
System):
&
will become members
of the New York Stock Exchange
on
Jan. 6, 1944, when Briggs W.
Buchanan, partner in the firm,
acquires the Exchange membershin of Charles H. Bean.
Canadian Securities
Wood;
Wall
Gundy
St.,
issued;-,
entitled
the
v y,> > \
Co;,, Inc.,
York 1 City,
us
have
110
restriction
Vk %
;
not be, deposited
collateral. for
Deposit
Loan
14
may
as
Account.
upon
a.
War
There
the
use
is
of
Treasury Bonds of 1965-70
or
214%. Treasury Bonds of 1956-
of
59
as
of
issues will be
Valuations
Securities.-'
pamphlet
firm
with
interesting* pamphlet
"Year-End
Canadian
this
New
an
&
>
ac¬
F, or
upon
may
Copies
be had
request.
•
from
ity
collateral, and bonds of such
for.
Account.
.
a
,
acceptable
as secur¬
War. Loan
Deposit
*
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4242
158
DIVIDEND NOTICES
•'/- •'»
of
out
.»
30 Broad Street, New York
December
The
Board of
earned
Directors has
surplus of
23,
Company,
a
Palmer
record
the
on
close of business
■.will be mailed.
books
on
F.
GUNTHER,
,
the
dividends of
Preferred Btock and
$1:50
$1.25
and
In
$5 Preferred Stock of the Com¬
been declared
for
payment' Feb-:
1,, 1944, to the stockholders of record at
ruary
the close
of
business January
6,
fast, realistic
Treasurer.
battle for Tarawa—would do
PACIFIC GAS AND ELECTRIC CO.
the
all
DIVIDEND NOTICE
Common Stock Dividend
,
»
No. 112
"h
the close of business
at
cember 30,
will
tt;
;5
not
on
•'
San Francisco, California
STATES
UNITED
.
SIVIELTING
the
a
l->4%
Preferred
,
:
•
December
22,
v
GEORGE MIXTF.R,
1943
'
:
Treasurer.
,;Y
■.
destroy. th<% people's
had
Interesting RR. Situation
SpVilas
New
& Hickey, 49 Wall
York City, members
New
York
Stock
and
Street,
of the
Ex¬
Curb
absolute
economic
life
govern¬
control
over
of
having both
lecture
the
the
an
unbalanced
United
Nations
nation,
maintain
stable
through
lend-
people on taking the
seriously and sought to drive
home his point by predicting that
we
would suffer a half' million
lease and mutual-aid
casualties in the next 90 days."
:
Such "rash predictions of dis¬
national
exchange
well
as
rates
control
agreements,
through
as
over
government
practically all inter¬
financial
ist in the immediate postwar per¬
iod the key-currencies stabiliza¬
plan
In
the
would not
conclusion
say:
initial
to
satis¬
.../!
bulletin has
the
following to
"The
bound
work
stabilization
is
be
temporary and will
through exchange
restrictions. During the immediate
postwar years changes are bound
be
maintained
to
be
made in
of the
the
individual
exchange rate
currencies.
The
transactions.
the
regulate
intended merely to
of credit and
flow
capital,
or
all - embracing and
the
national
insulating
economy from the price structure
abroad, will depend on the amount
hence
of
foreign
financial
granted that country.
assistance
though only temporarily,
.
(Continued from page 2636)
as
soon
they are freed from foreign
interference and particularly from
the
yoke of the conqueror,
it
would
be
of
advantage to
the stabilization
out
could
simultaneously
and
supervision
all
if
be carried
with
of
the
aid
interna¬
an
tional
organization. Such an or¬
ganization could exercise consid¬
erable
influence not only
initial
exchange
volatile sub¬
explode
a
which
stance
with
can
terrific violence.
a
Fortunately these rapid
changes Seldom come with¬
out warning. The market, in
its
own
way,
the
on
rates
to
be
of.
warns
changes, even if not the ex¬
tent. Right now it is begin¬
ning to show signs of disin¬
tegration. The leading stocks
of a few weeks ago—the alco¬
hols—are beginning to run
into
heavier and heavier of¬
ferings
while new stocks—
second-grade motors — are
vieing for tape popularity. It
is almost
the
axiom that when
an
leaders
start
fail
to
backing
move,
or
while
beginning to
away
other groups are
reaction is in the
a
offing. That is what is hap¬
pening today. " This doesn't
a/tear market is
that
mean
as
The
maintenance
of
adopted by the various countries
currency
hardly the way
stability in the Axis countries is shortly after the cessation of hos¬
to upset complacency, he declared.
a
simple problem because their tilities, but also on later rate ad¬
It is essential, Mr. Hoyt contin¬
balance
of
and
the
payments
transac¬ justments
permanent
ued, to insure an orderly flow of
tions, including trade with the stabilization. An institution that
news beca'use
"nothing can be so
would extend credits to countries
conquered and to a great extent
discouraging and so confusing to even with' the satellite
countries for stabilization of their curren¬
a willing public
than a con¬ are
cies and purchase abroad of com¬
one-way transactions requir¬
fused set of signals from Wash¬
ing no compensation at all, or no modities needed in the first stages
ington."
v'
immediate payments,, as in the of reconstruction would be able to
: c
individual governments
case of clearing credits in reichs* •prevent
marks. Imports of goods ah®"- serv¬ from borrowing exclusively from
:
Pay On Cuban 5s
ices
from
subjugated
countries the banks and particularly from
J. P. Morgan & Co.
Inc4 is noti¬ into Germany and
Japan are not the central bank. Since such an
fying holders of Republic of Cuba based no
free contractual agree¬ organization would
of necessity
external debt 5% gold bonds of
ments, which would require pay¬ be in constant touch with the
1914, due Feb. 1, 1949, that $345,- ments
central
banks
and
by the two Axis powers
foreign ex¬
400 principal amount of the bonds
and thus affect the external value change control boards of the vari¬
have been drawn for redemption
of their currencies. Commodities ous countries, it would be in a
on
Feb. 1, 1944, by operation of
and services are obtained in the position
to
prevent
a
member
the sinking fund, at 102 Vfe% of the
conquered countries by charging country from using foreign ex¬
principal amount and accrued'in¬
exorbitant
change control as a means of in¬
occupation costs, re¬
terest; • Interest' * on
the
drawn
quisitioning,
confiscation,
and sulating its economy from the
bonds will cease on the redemp¬
looting. Japan
has
no
foreign cost and price structure of the
.
!
element, it is
advance,
"Since all countries will attempt
to stabilize their
currencies, even
asters to come" is
-
?
con¬
budget has been ad¬
hered to by the belligerents and
by some neutral countries),
The
war
,
quarterly divi¬
(87>Y cents per share) on the
Capital' Stock, and a dividend of
fifty cents (50d) per share on the Common
Capital Stock, both payable on January 15,.
1944 to stockholders of record at the close
of business December 31, 1943.
••
'<Y;:/
dend of
pillars
unbalanced
American
{ REFINING AND MINING COMPANY
The Directors have declared
both
•
ian countries, where the
high official who declined to be
named," Mr.
Hoyt said.
"This
to
ex¬
moderate and
remove
fidence in the ability of the
gov¬
ernment to preserve the economic
structure. Not even the totalitar¬
interview with
undertook
task.
easy
might
his last speech
a
official
relatively
a
other,
Whyte
Savs
curren¬
simultaneously, for fear that this
risked
an
other
of
high government officials
carried
all
of
each
type of exchange control' to be
imposed by a country, whether
to
ments
papers
more
"Under conditions that will
incur¬
disagreed with those Washington budget and a fluctuating currency
officials who felt that the way to at the same time.
offset overconfidence was by "lec¬
"Since the outbreak of World
turing or frightening the people," War II the
policy of a stable ex¬
"Only the other day, the news¬ ternal value of
currency and an
E. J. Beckett, Treasurer
or
of
New York Sales Executive Group
at the Roosevelt Hotel, that he
De¬
to
Tomorrow's Markets
Walter
.
once
dared
returning next month to
his post as publisher of the Port¬
land Oregonian, Mr.
Hoyt told the
1943. The Transfer Books
be closed.
:
lectures
the
.confronted
to
increasing exports and
creating employment—or of
employing both means. With one
exception, however, no country
before
1943, equal to 2% of its par value,
Capital
Stock of this Company by check on
January 15, 1944, to shareholders of
record
the
all
cies will be
alone,
thus
more
seriousness
In what may be
will be paid upon the Common
V
;
.
"than
war
the
the
taxation
view
concerned."
A cash dividend declared
by the Board
of Directors on December 15, 1943,
for the fourth quarter of the
year
/
drive home
to
two
factorily."
by
ring budgetary deficits or of de¬
preciating the currency with a
reporting of both defeats and vic¬
tories—such as the hard-hitting
newspaper accounts of the bloody
1944.
B. WIEGERS,
that
of
relation
stabilization
meas¬
governments
were
with the choice of either
28
Dec.
unemployment, im¬
in
tion
financed
said:
declared
He
of
con¬
bilized
Since these schemes could not be
of combating complac¬
the home front.
indicating this, the New York
further
mass
currencies
aiding the econom¬
ically distressed, providing work
bringing
about
recovery.
90 days as
next
"Journal-American"
per
per
pany/ have
c
the
depression, with its
aimed at
ures
means
ency on
the
on
severe
casualties hi
Secretary
quarterly
$6
the
pelled governments to take
.
regular
'30s
sequent
*
on
the
economic
a
The
"During
the
of
..
problem and claim that
leading countries have been sta¬
%
Information, on Dec. 28 crit¬
the high
but unidentfied
government official who recently
predicted heavy American war
Electric Bond and Share
Company
$6 and $5 Preferred Stock Dividends
eharo
share
the
stable
a
icized
.
V G.
budgetary equilibrium and
exchange rate.
War
the
Company at the
December 27, 1943.
Checks
'•
<Y
"
-
of
Director
Hoyt,
the
Domestic Branch of the Office of
than Preferred stock owned by the Company,
payable January 3, 1944, to holders (other than
the Company), of the Preferred Capital stock
of
'20's most countries had achieved
Disasters To Gome"
divi¬
dend for the three months ending December 31,
1943, of one and . three quarters
(1%%) per
centum upon the issued and outstanding Pre¬
ferred
Capital stock of the Company,
other
Currency Necessary, Says Dean Madden
(Continued from first page)
"Rash Predictions Of
"
1943.
this day declared,
the
Stable
Hoy! Of OWI Criticizes
CITY INVESTING COMPANY
2655
the
around
It
corner.
does
that what
mean
buying is int
prospect should be done at a
price and not at present
levels.
It also means-that the
stocks
recommended here
in
the last two weeks at
prices,
in
some
cases
five
points
away from the present levels,
is
the
of
extent
the
coming
reaction.
V
-
Incidentally,
stocks look
V'-V'."
the
airplane
like they've been
about sold out.
I know their
.
post-war
but
I'm
future
not
is
dubious,
interested
in
■
changes, have issued
interest¬
an
bulletin containing prelim¬
inary
comments
on
the
New
Haven
reorganization
decision.
Copies of this bulletin may be
had upon request from Vilas &
Hickey.
• ■:
;
.C;
ing
Forms New Partnership
;
On
31st
December
the
present
partnership of T. J. Beauchamp &
Co.
will
dissolved
be
and
a
new
partnership consisting of TV J;
tion date. The drawn bonds will
trade with any neutral
Beauchamp, member of the New
country,
York Stock Exchange, and E. F. be payable on and after Feb. 1, while the trade of Germany with
Beauchamp will be formed as of 1944, at the office of J. P. Morgan the few small neutral countries in
Jan. 1, 1944.
Europe is based practically on
Office will be at 11 & Co.
Inc., New York City, or at
barter. Although the known facts
Wall Street, New York City.
the office of their agent, Morgan
about the financial condition of
Grenfell
T. N. Perkins In Boston
don.
(Special to The Financial Chronicle)
?
On
'
&
1
Dec.
Co.
Limited
in
ously called for redemption
amount
rate
of
indicate
that
the
external
their
respective curren¬
substantially lower than
official
cling
were
of
is
to
rate,
the
these
fiction
countries
of
exchange.
stable
a
\
effort will be made by all nations
stabilize their currencies and
to
to
balance
as
conditions
restore
Shipbuilding and Dry Dock Company
their
the
economic
budgets
as
soon
permit, in order to
foundation* of sound
progress.
Since
it
will
be
impossible for most countries
balance their budgets for some
time after the war, each economic
to
Statement of Recorded Cost of Work Performed During the
■Thirteen Weeks and the Thirty-Nine Weeks Ended
unit
September 27, 1943 and September 28, 1942
will
,v
September
New
Shi£ Construction'
Thirty-Nine Weeks Ended
September
28, 1942
September
27,1943
;
September
28, 1942 U
$34,650,000
$36,269,000
$101,641,000
$
88,641,000
906,000
7,970,000
2,276,000
27,1943
•
Ship Repairs and ':\,J-
,
i
Conversions
16,921,000
Hydraulic Turbines and
Accessories and Other
Work
1,536,000
811,000
3,932,000
to
maintain
its
In discussing currency stabili¬
zation methods the bulletin states:
"The
^
strive
currency on a stable level."
(Subject to final audit and year-end adjustments and charges)
2,273,000
Keynes and White plans,
which propose
to stabilize simul¬
taneously the currencies of all the
United
$37,092,000
$45,050,000
-ft
'December 28, 1943
$107,849,000
$107,835,000
R. I. FLETCHER
Comptroller
the
military
United Nations
the currency of
territory to fluctuate
liberated
establish
an
arbitrary
exchange, it would
advisable to have such
termined
by
a
seem
rate de¬
organization
an
thoroughly
familiar
problems involved."
with
the
cized
as
grandiose,
ambitious,
dangerous
Some opponents of an
international organization advo¬
impractical, and
even
schemes.
cate
a
are
Jos. R. Hixson Joins
Vilas &
Hickey Staff
Vilas &
Hickey, 49 Wall Street,
New York City, members of the
New
York
Stock
Exchange, an¬
Hixson,
that
nounce
Joseph R.
with Emanuel
formerly
has become associated
in
In
their
investment
Eiseman
christ & Co., and
in Hixson &
i
Co.,
them
department.
^he past Mr. Hixson
Alexander
&
with
&
was
was
with
Co.,
Gil¬
a
partner
Co.
Nations, have been criti¬
return
of
all
countries,
Outlook
Laird,
For
Bissell
Bank
&
Stocks
Meeds,
Broadway, New York City,
120
mem¬
bers of the New York Stock
Ex¬
or
at least of those whose currencies
Totals
the
"In the postwar period a serious
.
Newport News
that
of
permit
will
the
unredeemed.4.':
Thirteen Weeks Ended
not
but
cies
jof the bonds previ¬
FINANCIAL NOTICE
'.u-v
v/ill
lites
still
r
-
.
demonstrated
authorities
international in
character, to
the pre-1914 orthodox gold stand¬
ard or to the gold
exchange stand¬
ard where
change
and
other
leading
ex¬
changes, have prepared ah inter¬
esting
circular
entitled
"Bank
Stocks and Their Outlook." Copies
gold reserves are insuf¬
ficient. Others propose a key-cur
of this circular may be had from
lencies
the firm
stabilizaton
approach
to
upon
Curtiss
prices
Wright 14^-15.
on
remain
request;
The
the^rest of the stocks
the
You
same.
may
get most of them before next
week rolls around.
More next
Thursday.
Whyte
—Walter
[The
article
time
views
do
not
coincide
Chronicle.
"Since the experience in North
and
later
in
Italy has
Africa
a
value
1943, $39,900 prin-
offices at 84 State St.
cipai
the world.
of
the Axis countries and their satel¬
1'
21,
BOSTON, MASS.—Thomas NeL
Perkins, Jr. will engage in a
general securities business from
son
Lon¬
rest
post-war outlooks.So I sug¬
gest Lockheed at 13V2-14 and
expressed
in
necessarily at
with
They
are
those
this
any
of the
presented as
those of the author only.]
2656
Broker-Dealer Personnels-Items
Illinois Dealers Move
Industry Members Of WLB Denounce
Government's Handling Of Labor Disputes To Form New Ass'n
Government's handling of major labor disputes
along lines laid down recently by the Government itself, industry
members of the War Labor Board contended unanimously on Dec. 27
that a continuation of such a policy would eventually "destroy all
honest collective bargaining at the source," it was reported in a Wash¬
ington dispatch to the'New York "Times," which further said:
Dissenting from the'Board's ac-3>
tion, taken shortly before, to as¬
sure retroactive readjustments of
pay scales in advance of settlement
of the wage dispute in the steel Sets New
industry, these members said:
. •/■
States
United
production
of
:
"It is apparent that administra¬
rayon
in 1943 totaled approxitive action in the coal dispute has
,„nnnn
become the national policy for all, mately 660,000,000 pounds, r pre*
future large-scale labor disputes. I senting a 4% gaml over Jast yeai
In spite! of the no-strike pledge of output
and establishing a new
labor, a union's members have production record for the mdpsonly:.to strike in sufficient number { try, according to William C. Apto secure abrogation of WLB de^, Pleton, President of the American
Output
sP°ntane4 j ^lscose
so-called
, Corp.
Output m 19
amounted to 633,000,000 pounds
becoming
Decerning
are
in fact
are, in tact,
strikes
strikes
mpQunds
more than
dou¬
bled in the past five years, the
in
1938 having totaled
288,000,000 pounds.
The firm's announcement Dec.
23 further said:
n
'
.
output
objectives."
'
dissenting statement came
This
-
has
Production
Continue
(heir
^ ^ ^
^
policy of certain unions; they
to occur in
increasing
numbers and rarely fail to obtain
a
new
a
association of securities dealers in
Record
rjno
ous
of
formation
the
toward
•'
cisions. These
the
in
resulted
has
Illinois
ap¬
Tanham and Walter Margetts.
"'
and
cannot
of
steel," they said. "The facts and
surrounding circumstances are not
yi>«The
yarn
before : and
after
a
tain
,
policy is to enter¬
action while there is a
or
ress.":
mored
is
no
ate
'Little Steel Formula.'
•
.
"Retroaction is
cords
part of collective bar¬
It is intertwined with
wage demands in every case. To
integral
gaining.
grant
according
to
Commerce," was
committee,
The
"Journal of
the
appointed by Henry T. Berblinger,
Secretary and Treasurer of Sills,
Minton & Co., who "presided at
a
preliminary meeting held earlier
which steps toward
this month, at
of
formation
the
-
consists of Wal¬
"The committee
Brailsford,
partner
of
& Co.; W. A. Gorman,
President of RDnk, Gorman & Co.,
R.'
ter"
Brailsford
McFarlane,
O'Gara & Co.,
D.
Henry
Inc.;
partner of Alfred
W. W. Sims,
that
effect
Steel
:
gram.
provisions of the
State Department's Good Neigh¬
bor Policy, designed to increase
economic callaboration and good
the
"Under
will
the
between
Americas.
two
United States rayon
so-called
the
heat, and are
indispensable to the
carrying out of the na¬
synthetic rubber tire pro¬
tion's
dustry were terminated by the
union following a statement in the
steelworkers national convention
producers, as
in 1942, set aside each month a
■)" specified amount of their produc¬
for the steel- tion for export to the Latin Amer¬
Formula'
broken,
must
counsel
countries.
vvorkers' union stated in a recent
public hearing of the industry and
ican
union before the Board that there
ed
would be
sorbing the
no
strike
or
decided
to
a
name
committee to
objectives of a new or¬
define the
After the new com¬
mittee makes its report, another
meeting will be called to decide
whether
a
new
association ac¬
tually should be formed.
"One of the questions that the
committee will have to decide is
whether
the
new
organization
could serve any purpose that now
is not being handled by the Na¬
tional
Association of Securities
Dealers and the Investment Bank¬
ganization.
ers
of America."
Association
"War demand for rayon
work stop¬
the
Delaware
of
interesting possibilities ac¬
offers
to a circular
situation
issued
cording
-
discussing
by Bear,
Stearns & Co., 1 Wall Street, New
York City, members of the New
York Stock Exchange.
Copies of
this
circular may be obtained
upon request from Bear, Stearns
the
hosiery
affect¬
ab¬
by
situation
pxtra-strength viscose
yarns
of 17 cents per
& Co.
they cotton garment industry is
sufficient
illustration
of such
a
of
the
ab-
policy and prac¬
tice."
C^feGillies
To Be
Gillies
will
become
a
is
M.
partner in
Hayden, Stone & Co., members of
the
on
New
York
January 1st
make
his
firm's
Boston
Stock
Exchange,
Mr. Gillies will
headquarters
office,
85
Street.
made
;ray,on
scale
men's
its
an
the
wider
peace.
increasing
designed
for
wear.
of
staff
Federal
with John Galbraith &
(Special to The Financial Chronicle)
Porter
BOSTON, MASS.—Mrs. Elsie J.
St. Laurent is now with Union
with
MASS.
BOSTON,
—
P.
■'.'■j
to The Financial Chronicle)
(Special
is
ler
versatility
demonstrated in
war-time
will
make
usefulness
the
in
of
1943 by
applica¬
fiber of
times
of
Now, however, the indus¬
must
devote its
accumulated
po¬
the staff of F. L,
Co., Inc., 77 Franklin
-/v/'•?'
&
Putnam
Street.
with
to The Financial
thur
Warner
Willard
89
the
In
Street.
Devonshire
Mr.
J. Ar¬
Company,
&
past
&
with Coburn
was
CHICAGO, ILL.—John II. Kasis with Kidder, Peabody &
beer
Co., 135 South La Salle Street. Mr.
Childs &
previously with C. F.
may
Laughlin,
be
Baird
had
from
Reuss
&
request.
Company, Inc.
ILL. — Joseph B.
Nystrom is now associated with
Doyle, O'Connor & Co., Inc., 135
^
Chronicle)
-i.
Bertel T.
Malmquist is now with Glore,
Forgan & Co., 135 South La Salle
ILL.
CHICAGO,
—
win
the
experience
(Special to The Financial Chronicle)
CHICAGO, ILL.—Wesley Blom
rejoined Paine, Webber, Jack¬
& Curtis, 209 South La Salle
Street.
Mr. Blom was recently
has
son
MICH.! L-+Harry mil.
H. Rollins
war
sible date.
1
at
the
MICH. —Homer M.
become associated With
Eaton has
Charles A. Parcells & Co., Penob¬
Building.
viously
Mr. Eaton was pre¬
manager
of W.
E.
Moss
Co.
a
from
(Special to The Financial Chronicle)
DETROIT,
has
Mulkey
staff of Wm.
'
MICH. —Claude E.
added to the
C. Roney & Co., Buhl
been
(Special to The Financial Chronicle)
LOS
ANGELES,
B. Ruble is now
&
Co.,
with E. F. Hutton
South
623
CALIF.—Carl
Spring
(Special to The Financial
L. Ward
have
helping with Cohu
was
1911
to
1933,
when
they withdrew from membership
and
merged
with
the former
County Trust Co., the merged in¬
stitution later taking the name of
Lawyers Trust Co.
In commenting on the action,
Orie R. Kelly, President of the
Lawyers Trust Co., said:
"We
believe that membership
distinct
&
Co.
Davis,
and Howard J.
become
associated
Torrey.
Mr. Davis
previously
Miller &
Street.
Chronicle)
with
Corrigan,
.
in
advantages
operating procedure, and we feel
that membership in the Associa¬
tion will prove to
able benefit to
our
be of consider¬
company."
The Lawyers Trust Co., has
addition
111
to¬
$60,000,000.
its
to
main office
at
it has two other
Manhattan,
namely,
Street Office, at 8th
Broadway,
offices
in
Fourteenth
Avenue and 14th
Street, and Em¬
pire State Office, 5th Avenue and
34th Street, • as well as an office
in Brooklyn, at 16 Court Street. *
admission
The
marks
Co.
in
member
of the Lawyers
fourth
the
new
the last two months;
The Brooklyn Trust Co. was ad¬
mitted to the Clearing House on
Dec;
York
Co.
States: Trust
was
the
thereto,
and,: prior
13,
United
under
'
earliest pos¬
Trust Co,
member of the Clearing
Lawyers
the
by
Trust
DETROIT,
Mc¬
be
110, which is the number formerly
In
,,
(Special to The Financial Chronicle)
&
/
number will
clearing
tal assets in excess of
McCormick & Co.
MIAMI. FLA.—Charles B.
to
Their
presents
Ay res
and
Association.
in the New York Clearing House
Street.
scot
Dec. 26 the
on
Lawyers Trust Company was ad¬
mitted
to
membership in
the
House
CHICAGO,
Eugene
skill
Street.
meeting of all the mem¬
the New York Clearing
a
of
while
upon
1
At
held
(Special to The Financial Chronicle)
New York Stock Ex¬
Copies of this interesting
California
House Association
(Special to The Financial Chronicle)
was
CALIF.—
FRANCISCO,
Lawyers Trust Joins
H. Y. Clearing House
bers
Middlebrook.
Kasbeer
■
■,
Conrad, Bruce & Co., is now
519
bot,
Wil-
MASS.—Alvin
BOSTON,
lard is now connected with
Street, New York City, mem¬
change.
'.''.m?
Chronicle)
detailed Building.
Mr. Mulkey was forcircular on the situation issued by mjerly with Merrill Lynch, Pierce,
fenner & Beane.
McLaughlin, Baird & Reuss,
bers of the
•
affiliated with Hannaford & Tal¬
..
tentialities according to a
Wall
•' /
Benjamin A. Armstrong, formerly
joining
DETROIT,
profit
attractive
Build-irfg'
•
SAN
BOSTON, MASS.—Louis N. Ful¬
York City,
offers
CALIFA4
now* With
is
(Special, to The Financial Chronicle)
42 Broadway, & Sons, Inc., and Cr&y./iMcFawn
has had printed & Co., is now affiliated with Mer¬
a
new study
of the problem of rill
Lynch,
Pierce,
Fenner
&
disclosure of markets or profits Beane, Buhl Building.
containing an analysis of recent
tion
■■•••.;-V
Chronicle)-!-*/)
II. R. Baker & Co., Russ
Jones, formerly withrEi
"Rocki Island" reorganiza¬
Edwards
Walter iLi
Street.
State
-s4
■
SAN- FRANCISCO,
affiliated
H. C. Wainwright & Co., 60
with
\
(Special to-The Financial
Morrell
become
has
Company,
For the past 10
Building.
Balfour.
to The Financial Chronicle)
Goodwin
' j*
•
Mr. Rosentreter has been
Russell, Hoppe, Stewart &
years
Securities Corp., 75 Federal Street.
(Special
been
; PORTLAND, ORE.—A. O. Rosentreter
has
become
associated
Cohon,
Morris
New
has
(Special to The Financial Chronicle)
Iligginson Corp./ 50
Lee
J.
ORE.—Joseph
added to the
staff of
Merrill
Lynch, Pierce,
Feiiner & Beane, Wilcox Building.
Street.
(Special to The Financial,phronicl^),,
Problem
Customer
V,:
(Speci&l to The Financial Chronicle)
i/
PORTLAND,
to The Financial Chronicle)
(Special
The Broker-Dealer
circular
increasing
important
tions,
try
on
fabrics
in
"The
rayon,
and the fiber
of rayon
used
being
Water
at
field
civilian
provided a large proportion of
the
country's essential cl$Hirj'g
; requirements. Surveys show' "f ftrit
considerably more than one-half
of all women's dresses sold today
are
MASS.—Charles
the
"In
Hoyden, Stone Partner
BOSTON,
v;./*
BOSTON, MASS. —Dorothy A.
Parsons
has been added to the
with Kebbon,
.
;
f-ence
•
DuLong
(Special to The Financial
delivered)
Power & Light Co.
stock (when
con¬
liams, Inc., 95 Elm Street.
Franklin
?••///:. •"-
Street.
Attractive Situation
for tire cords, para¬
hour and full re¬ chutes and self-sealing gasoline
This interesting booklet,
tanks.
Certain
types
of these cases.
troactivity,
including
contract
entitled "The Broker-Dealer Cus¬
continuance,
were
the
union's yarns had been developed specif¬
tomer Problem," is available to
main objectives.
y
:
^ ically for use in hosiery. Their
"The Board has no formal pol¬ application in this field must now brokers and dealers at a cost of
icy to grant wage adjustments re¬ wait until after the war is over. $1 per copy, and may be obtained
although
standard from Morris Cohon.
troactively to the date of an ex¬ Meanwhile,
pired contract. Even in its case- rayon yarns are being used, the
by-case approach, the Board does quality of rayon stockings was
Profit Potentialities
not
consistently follow such a very greatly improved during the
.:./■.
practice. Its recent decision on year. ■
The
rayon
and that the union demand
page
with Laidlaw & Co., 110
South La Salle Street.'
Common
CONN.—Charles
has" become
Hammond
nected with Day, Stoddard & Wil¬
be
"-f
"General
in the offices of'
Sills, Minton & Co., when it was
.■/.
..
NEW HAVEN,
'
a
Dec. 2
meeting
exceptional ability
to retain
possess
successful
sanctioning a con¬
tract without full knowledge of
its terms....
v/: y-r-V.
"The contracts in the steel in¬
'Little
made
to
led
discussions
"These
'..
.
to The Financial Chronicle)
(Special
to The Financial Chronicle)
(Special
Rayon tire
rubber.
regarded as
tantamount to
to., the
gener¬
those
their strength under
bargaining on
the settlement is
in
or
tires
than
and
/
.
Bank
Mercantile
Co.,
Building.
BOSTON, MASS. —William J.
has
become
connected
President of Enyart,
Co.,
BEACH,; FLA.—Robert
with Blair F, Clay-
&
Cassidy
V. Van Camp, ViceVan Camp &
Owen
Inc.;
baugh
N.
■(Special
'
■ •
T. Kulp is now
A;.:-.'-";y\
Co.
&
associa¬
new
a
tion were launched.
resist such heat and
to
before
one
the other
natural
synthetic
new
These
heat
more
with
inherent and
an
the
of
tires.
rubber
under the
due the steel workers
and
ufacture
adjustment
wage
heavy guns, Army
other
motorized
cars,
equipment, and also for the man¬
V'
"There
to
trucks
stoppage in prog¬
work
production to be increased to
pounds an¬
The program was initi¬
provide sufficient rayon
tire cord for the manufacture of
tires for our military aircraft, ar¬
Board
no
calls
program
level of 240,000,000
ated
pattern in the future in other na¬
tional industries.
' * ■
;
strike
This
nually.
in coal could not be followed as a
.
Board.
for
that its action
the coal case, stated
ordered by the War Produc¬
tion
both
the decision in
Board,
Labor
War
"The
cord
panded output of rayon tire
comparable.
,
just past was
the large-scale program for ex¬
year
like action in
govern
the
commencement
MIAMI
pointment of a committee for the
Fourth Street, St. Louis, Mo. Mr.
of drafting a report de¬
Ward was previously with O. H.
fining the objectives of such an
Wibbing & Co., of St. Louis, Fesorganization, the Chicago "Jour¬
tus J. Wade, Jr., & Co., and in
nal of Commerce" reported on De¬
the past with Edward D. Jones
cember 23rd.
-
:
(Special to The Financial Chronicle)
associated with
North
Ward has become
Edward D. Jones & Co., 300
of markups.
gasoline tanks.
;: {■
"A major development of
feel that the Gov¬
not
"We strongly
ernment decision in coal does
ILL.—Frank E.
BELLEVILLE,
purpose
Vice-President
after the four labor members, who
of Sills, Minton" & Co.
Mr. Berb¬
had voted with the industry mem¬
"Piayon's versatility and abil¬ linger-said the 'members of the
bers on Dec., 22 to deny retro¬
ity to fill many varied needs was committee would elect their own
active paymehti/bf wage adjust¬
demonstrated during the year by chairman.
ments, although for different rea¬
"The movement toward the for¬
its use in many types of military
sons, shifted to dft'efposition taken
equipment and in a broad range mation of a new association of
by the four public'members. With¬
securities
firms
was
of civilian applications. The prin¬ Illinois
in an hour after the shift was
after over-the-counter
cipal military uses included ex- launched
made public, Philip Murray called
trastrength tire cord and tire fa¬ dealers began to discuss infor¬
off the steel strike.
brics, parachutes for fragmenta¬ mally the implications of a recent
The
industry members' state¬
tion
or*
anti-personnel
bombs, report of the Board of Governors
ment was signed by George K.
cargo
and
supply
parachutes, of the National Association of
Eatt, Frederick S. Fales, James
uniform linings, and self-sealing Securities Dealers on the question
-
>
.
CHICAGO, ILL.—A movement
Denouncing the
1943 Rayon
If you contemplate making [additions to your, personnel.«
please send in particulars to the Editor of The Financial;
Chronicle for publication in this column,
: ;
'
v,.
of New
elected, to membership,
date
Nov. 29,
of
arid J. P.
Morgan & Co. Inc. under date of
Oct.
29.
The admission of the Brooklyn
Trust
was
Dec. 23,
noted
page
in
our
2565.f
issue
of
>
rf"";
Empire Sheet4 &. ;Tm Plate
Situation Attractive,*?in
6s? oM948 of
Tin Plate Co.,
offers attractive possibilities ac¬
cording to a memorandum pre¬
The first mortgage*
Empire
Sheet
pared by Hill,
Inc.,
City.
120
Thompson & Co."{
Broadway,
Copies
memorandum
request.
&
of
this
may
be
New
York
interesting
had
upon
•<
Volume ,158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4242
because of fear of
Of Dealers 0«er NASD
Decree Hot
1
Subsiding
(Continued from page 2631)
"
:
vain. THE
5% RULE MUST NOT AND WILL NOT STAND.
subject will not want to miss
reading "NASD Mark-up And SEC Disclosure Rules De¬
structive Measures," by Raymond Murray, which starts on
'
Those interested in this
-
the outside front
cover
of this issue.Y"'
yY'y YY'
;
Such additional letters from dealers
;
on
•has been omitted.. And
please remember that in informing
views on the subject you are help¬
ing the cause in a substantial manner. The names of those
submitting comments will be omitted where requested. Com¬
munications should be addressed to Editor, Commercial &
Financial Chronicle, ,25 Spruce Street, New York 8, N. Y.
the "Chronicle"- of your
-•;;'•; 'X-
/
:
'
"102'^
DEALER NO.
'
YyY.YYY.'^Y/Y: NASD Profit Limitation Decree
I feel
strongly that the dealers' or brokers' profit should not be
by government decree. The naming of a certain fixed
percentage, regardless of the figure,-is a suggestion that that rate
may be regarded as a proper profit on any transaction. As a matter
determined
of;fact, the 5f<? rate suggested by the Association is
extremely
an
large profit for many transactions in securities and will protect the
dishonest trader who would hesitate to take this profit without the
protection offered by this regulation.
A fair profit for one sort,of
security will be entirely* inapplicable to another kind.
Moreover,
practicable to change these regulations to suit the changes of condi¬
'-■%
Y/YvYY■/■••r.'Y*:YY-'Y''YYYY
Does Not Exist
Need
-YY
>
For
Y'YyYYYYYY-,
Forced Limitation
Of
Profits On
YYY:' Transactions In Securities
Profits in other lines of business, such as manufacturing and
mercantile, are not prescribed by government regulations. Why start
on the assumption that everyone in the investment business is dis¬
.
honest
and
fraud?
must
be
governed by ironclad regulations to prevent
I believe that any fair investigation would show that in this
business,
in others, most men are honest.
There will be crooks
in every business who, when discovered, can be brought to justice by
the existing state or federal laws without the necessity of a special
set of laws particularly applicable to the investment business. :
••.
'
In
as
is, in
opinion,
my
of
paper—50.
kind
any
regarding
find out the
an
impossibility.
*
•
has
virility
no
business,
our
-
YYYYY';-Y Y^>;>
The language of this regulation imposes terms impossible to ful¬
i
fill.
For
and
asked
inactive securities
unsigned.
are
It
is
Press
Company, 15 East ,26th
Street, New York 10, N. Y.—cloth
—two volumes—$15.00.
certainly
business
our
vitality of its own, or somewhere a fear has been
bureaucracy, which of itself would be most anti-American.
here for
us
Oil
quotations.
are unlimited.
such securities
of
even
the
without
more
next effort
r>nrr»r»rci+ci
corporate Vmeinooo
business.
nnv
any
Either
omill
the
small
dealers
undertake
got
and, secondly, the information when ob¬
reliable and might later subject
tained,
as shown above, would not be
the dealer to much unjust criticism.
All this
is another
of
case
some
Y^Y;
one person
or
some
one
chanics, as
Exchange and big underwriting houses. I am hot criticizing these
gentlemen, as I think they have done a very good job under the
circumstances, but I have always questioned whether the governing
setup is proper, YYYY'.'YyYY'::Y-y '■
.y..y y
y■ YYY'/Y Y':
Oil
E.
Chase
The NASD is not
therefore,
should
democratic processes.
At
a
act—rightly
Iron
and for all.
once
have
read
a
ulation of the NASD.
use
our
all
I
have
NO.
dealer.
followed
indulge in
tion, making it impossible to. do business in
considera¬
considerable number
one
a
more
of
perfectly sound securities affected by these regulations.
On this
subject the statements made by Mr. Benjamin M. Anderson in his
article in the "Chronicle" are so good that I see no opportunity for
further
comment.
clearness
I
consider
and fairness
and
I
his
statements
wish
that
in
remarkable
their
in
their
printed form they
could be made prescribed reading for every Congressman, every
ator and every member of the President's cabinet.
.
DEALER
.
NO.
,
going to be able to live in
a
and
the recent action of the NASD regarding profit limita¬
morning I received the letter mailed you by Mr. J. A.
White of Cincinnati'commenting on this subject and dated Novem¬
ber 29, 1943. I agree with Mr. White and so expressed myself to hi in
on the telephone^this
morning. As a competitive dealer and withf
tions,
no
on
This
motive;
dealers
m
|6 f?i|4 Mr. White's axe I do feel that it is high time
all branches
cooperativelyttfWiM
l
am
of
finance
solution of
respect
one
another
and
our
in any-way encourage you in your continuation
what you know to be right, I assure
^
of this struggle for
with
stitute
interest
your
Stabilization—E.
E.
campaign
York,
York
which I quote:
"One
thing that
"Y
amazes
;
me
*
is, in all the comments that
Y-rY.'! Y
Post-WTar Employment and
Settlement
of
Terminated
Contracts—Committee
nomic
D.
for
Eco¬
Development, Washington,
C—paper.
Post-War
Nations
LijfjS
th«
War
;
■,
Y
■;
,
Plans
of
Lewis
—
L,
the
-
•
■
United
Lorwin
Century
Y
Fund,
—
330
^ ^
^
*
Post-War
Reemployment, The
Magnitude of the Problem—Karl
T.
Schlotterbeck—The
Brookings
N.
Y.—paper—10 cents.
in
a
War
Economy—*
Frederick C. Mills—National Bu¬
reau of Economic Research—1819
Broadway, New York 23, N. Y.—
paper. Y
Y-.YY Y.YYYY Y:-'>:'!YY"::
.
Press,
Morningside Heights,
New
York
City —Cloth —$3.50.
Railroad
of
Y
Travel
and
State
the
Business—Thor Hultgren—Na¬
Bureau of. Economic Re¬
tional
Effect
Agricultural Income and Farm
Real Estate
Prices
Y
Y
v
—
Monetary Standards Inquiry, 408
Graybar Building, New York 17.
Of
War
Financing, The
Prices, Ninth Federal
and
On
Business
Manufacturing
—
Trade, World War I—Charles
H. Schmidt and Ralph A.
Young-
National Bureau of Economic Re¬
search, 1819 Broadway, New York
23, N. Y.—paper—50 cents.
Y
Agricultural Production in Con¬
tinental Europe During the 191418
War and the Reconstruction
O.
Period—League of Nations Publi¬
Fifth
cation,
1943., II.A.7—Columbia
University
Press,
International
—$3.00.
Financial
Accounting — George
May—The Macmillan Co., 60
search, 1819 Broadway, New York
23, N. Y.—paper—35c.
Y Small Loan Laws of the United
States—fifth edition, September 1*
1943—Pollak Foundation for Eco¬
nomic Research,
paper—ten
per
hundred)..
•
Y
/
.
Newton, Mass.—
(seven dollars
Y
••
Y;jY-
Study of Retail Trade Areas in
Y
East
Service, 2960 Broad¬
way, New York 27, N. Y.—Cloth,
$2.25; paper, $1.75.
cents
Ave., New York City—cloth
Fundamentals
Documents
Monetary
of
International
Policy—Dr.
Frank
G.
Central
Illinois—P.
D.
Con-:
verse—University of Illinois, 'College of Commerce and Business
Graham, Princeton University— Administration, Bureau of Eco¬
Monetary Standards Inquiry, nomic
and
Business
Research,
408 Graybar Building, New York
Urbana, Illinois—paper. •,..*■•:.• •
17, Ni Y—Paper, 10c (prices for
The
•
quantity orders
on—October 1943 issue of "inter¬
national Conciliation"
Endowment
—
Carnegie
New York
cents.
27, N.
>
.j,.\
Automobile Facts and Figures
(25th Edition)—Automobile Man¬
ufacturers
ii
Detroit,
Mich.—
to
the
the
Case
Sweden,
For
a
International Gold
Sta$clard—Edwin
Walter Kemm,e,i;er—Economists'
National
^opimittee on Monetary Policy, 7C
ifth Avenue, New York CityPaper—no charge.
How
Association, New Cen¬
Building,
request).
American
Spots In
i
Y.—paper—fiv^
' !\
on
it
International
for
Peace, Division of Intercourse and
Education, 405 West 117th
Nazi
Germany
Has
Con¬
—
A
of
Review —The
Bank
of
Central
Financial
and
Chase
America,
Hamburger-*Brookings Institution,
722
Place,
Washington
6,
C.—cloth—$1.00.
D.
National
York, Pine Street,
Nassau, New York City. ,r
Describing the Supervisor's Job
-Victor
V.
Veysey
—
Industrial
Wartime
N
Survey—e W s •
Ex¬
Trade Union Library, Atrial
Relations
menL of
^
r-..T.
Section, )DepartY
Economics
&
Soci.nl. Ihr
stifutions, Princeton University',
Princeton, N. J.—paper—40 cents.
Using Descriptions of Supervi¬
Jobs—Victor V. Veysey—In¬
sory
dustrial
the
of
Relations
for
Section, Cali¬
Technology,
Pasadena, Calif.—paper—1.00.
1943 ("An Essay To¬
Present and Future
Uses of Reason, The—Arthur E.
International
November,
wards
Peace
you
A
Swedish
change, Inc., 630 Fifth Ave.y NewYork City—Cloth (illustrated'
fornia
Economic
New
-
trolled Business—L.
The
Countries
The
corner
have in your paper 99% of the dealers haven't the
guts to endorse
what they write. Any industry or institution that is so
spineless
19 West 44th Street, New
City — paper — thirty-five
cents.
latest'
Jackson
I have been reading with a great deal of interest
your articles
regarding the NASD and the SEC, etc., and the thing that has dis¬
turbed me more than anything else about the situation is a quotation
I read from a letter written and signed by a small dealer in
Virginia,
•
Danube Basin And The German
Economic Sphere—Antonin Basch
Columbia
University
Agger—
paper.
104
'
■
of
York—Mary Rodgers Lind¬
say—The Personnel Club of New
California In¬
Pasadena.
of
Technology,
Calif.—paper—$1.00.
American Banking and Curren¬
cy
ter
you it will be my pleasure.
DEALER NO
•
Institute
Pasadena,
Calif.—
YYY'Y-'Y
"YY'Y vY YY "
_
Relations Section,
The Business
work
problems from within.
thoroughly opposed to bureaucracy and if this letter will
a
Bureau o£ Industrial
the ,,University of
of
Institution, Washington 6, D. C.~^
Paper—250. ■,•'• Y':" ■ Y
Y'•:"
Aspects of the Coming Postwar
paper
the
Twentieth
decent world.
Settlement—Kingsley W. Hamilyour
Institute, 350 Fifth
New
106
academic treatise on the subject, but any
knows that all this foolishness has got to stop if we are
/■-
103
I have been following the articles appearing in
elsewhere
Sen¬
-
for
American
Plan—John.jW^Riegel, Direc¬
paper.
Y'V'Y;:y
any
group
.
—
of
Technology,
J
-'
5%
■
keeping records merely add
Products
Michigan—California
the
concern
profit limitation, which seems to be the
and abomination visited on the securities business.
sane person
Steel
Pioneering in Personnel
A
History of the Personnel Club of
and
VYY'YYY:Y'':Y\;', YYY'y
name.
DEALER
weeks
the
for
Shipments
Steel
—
great airtount of interest
future of the small
*
some
&
Relations
Y'Y'YY-YY
P. S.: Please do not
to
-
tor
•
Right now is the time for the various dealer organizations, in¬
cluding the NASD, to work together and I believe a dealer educational
program would be time and money well spent.
"
For
;;
Paving the Way For, An incen¬
,'v; Y'Yvy^YYYYYYYY.YY;
As a member of the
NASD, I have always been led to believe
them to be the Securities Dealer's
friend, and I hope that, in the end,
they will prove to be our friend. Right now, it looks like they are
attempting to stress some of their authority and act completely
against the members of their own organization. :
Of course, I am not in favor of the 5%
regulation and can only
relative
New
"
with
disaster for the
'Y-^Y
tive
campaign conducted by the Financial Chronicle against the 5% Reg¬
see
of.
\
Avenue, New York City—paper—
VY Yi,Y\v'
DEALER NO. 105
I
Bank
$2.50.
history of the investment business are we in
better position with the investing public and with the
Congress and
Senate, and if things are going on detrimental to the public interests
and to our business, this is the time
they ought to be straightened
out
Peace—Joseph
vice-president of the
National
Methods
time in the
no
•
s
War and
Overseas
private body; it is'a public body,
or
wrongly—through ordinary
•
nnnor
Packaging, Marking & Loading
very difficult circumstances, has
splendid job; but I also think that the mechanics of the
organization and the right to vote look like they need some adjusting.
The judgment of the Board on the 5%
ruling certainly represents
the present policy of 99% of the dealers in this
country on riskless
trades. The only-thing I question is that I believe the
membership
as a whole
ought to have been given a chance to consider this par¬
and
Til-
York—paper.
a
ticular matter.
in
Pogue,
I think Wallace Fulton, under
done
Reserve District—Arthur R. Uphaving a hostile attitude toward the banking br investment fraternity,
gren—Federal Reserve; Bank of
making regulations applicable to a b.usSto>6'SsNHth (the details of which
Minneapolis, Minn.—paper.
they are not familiar and do not meanbtd:;take:4h'e trouble to become
familiar.
'7:'Y-Y,
YwM. djr// .bniVY•-■YY'Y''YV^YYY'-1
The rules for
Har¬
Building, Chicago^ 111.—paper.
any
them, or there is something wrong with the me¬
obviously most of the Board of Governors represent Stock
he might fail
the transaction
Post-War—P.
Phinncm
4-
haven't
real fight left in
cannot
in all his efforts and someone relsd
might succeed at his first attempt.
Furthermore, the quotations on
such securities are usually not made "firm" but "subject to confir¬
mation," different figures being made when the transaction changes
from the prospective stage to the conclusive stage.
Thus, in the first
place, the time taken in endeavoring to obtain these quotations would
make it economically impossible in many instances for the dealer to
or
and
"grass roots" discussion of the investment vey Middleton, Executive ViceNaturally, the question of NASD came up. The only com¬ President of Railway Business
ment I have to make on the rule is—this
organization was formed Association—Railway Business As-*
by an Act of Congress and everybody has to join who wants to do 1 sociation.
First National Bank
business.
One might easily try five Or six places
and obtain the desired quotations: oh
success
Industry and Transportation,
Pre-War
clipping, Lyle Boren spent Friday and Satur¬
a
give with accuracy the bid
The opportunities for seeking quotations on
one
•.
or
As per the attached
day with
curse
V.
'
.
and Asked Disclosure Plan
,."
•;
Corporations 1943-44—The Ronald
•
' SEC. Bid
'
Montgomery's Federal Taxes On
these communications
reason
contrariwise to the American system and either indicates
I can't
yY
Endowment
Peace, 405 West
St., New York 27, N. Y.—
117th
few words, the
a
idea of the government's picking out one
particular business and prescribing a certain set of rules for carrying
on is fundamentally unfair and unjust.
In the second place, to deter-*
mine any such set of rules that can be equitably applied for all cases
-
Carnegie
—
for International
living doing something else."
a
industry would be to
our
rates in existence under certain conditions may be out of order under
other conditions possibly six months or a year later.
It will be im¬
tions.
Peace")
Most
have noticed that practically all the letters are
unsigned and
in most of them the fear is
expressed of reprisals of some kind if
they are signed. I think the most important thing you could do for
V •, v
More Dealer Comments On NASD Rule
make
can
us
tomorrow if they wish—but what of it?
or
I
the 5% profit
as
Y.y.Yy
of
today
created of
could be accommodated in today's paper are given
below. As in the past, no letter favorable to the 5% decree
.spread
reprisals doesn't deserve/tn my opinion, better
I realize of course that SEC can put anybody out of
treatment.,
business
\
265?
Conciliation
Institute
of
M&cMillan
Com¬
Europe," by William Murphy—The
Penn; and "Catholic, Jewish, and pany, 60 Fifth Ave.,' New York
Protestant Declaration on World City — cloth — $3.00.
Brazilian Economic
Savings And Loan Associations
Active In Savings And War Bond Sales Convention Adjourns
The New St. Paul Plan
Hew York
Savings in the 248 savings and loan associations in New York
a record high of $428,567,000 on Nov. 30, 1943, accord¬
(Continued on page 2633)
Recommends Central Bank
State reached
Federal
Patterned After
ing to figures released on Dec. 27 by Zebulon V. Woodard, Executive
Vice-President of the New York State League of Savings and Loan
Reserve Bank
membership 201 of these mutual
The
Brazilian Economic Con¬
thrift and home mortgage financing institutions.
The announce¬ vention, which has been in ses¬
ment
reports
that for the
11<$>sion since Nov. 25, ended on Dec.
Associations, which comprises in its
,
share sav¬ win the European war at some
ings increased by a net amount of stage near which Gen. Eisenhower
;
over
$35,000,000, representing a suggested.
"However, this would happen,
gain of 8.9% since Jan. 10. Based
he added, only if the peoples in all
upon these reports, Mr. Woodard
estimated that the total resources the United Nations, both behind
months' period private
the lines and
and loan asso¬
ciations in the State on Nov. 30
had reached the amount of $516,all 248 savings
of
and
The announcement further said:
"Mortgage loans granted during
aggregated $5,118,000,
$3,972,000 was for the
which
of
purchase of homes and $524,000
refinancing of previous mort¬
gages.
Many of the loans made
for
refinancing represented the
placing of old straight mortgages
on an amortized basis. Savings and
loan associations specialize in and
were
the
originators
of
the
type
of home mortgage.
of the
as¬
sociations in the form of cash and
Government bonds now constitute
N. Y. Stock
firm
following
the
reported
Transfer of the Exchange mem¬
ier, which will continue as a mem¬
loan
firm, to Edward Necarsulmer,
Jr., will be considered on Dec. 30.
Mr. Necarsulmer, it is understood,
will
act
as
an
individual floor
ber
Eisenhower Predicts
Victory In 1944
Dwight
has
Eisenhower,
D.
selected
been
to
com¬
mand the Anglo-American offen¬
sive
predicted
Germany,
against
Dec. 27 that "we will win
on
European
The
ment
at
ence
at
the
in 1944."
war
General
this
made
state¬
farewell
a
press confer¬
headquarters in
Allied
North Africa.
In
Algiers,
stated:
He
impulse, he
said, to qualify his prediction of
victory
in
1944.
Modestly
he
added that only time would tell
was
resisting
whether he
the job
an
the right man for
ahead of him.
that
cated
was
he
He indi¬
would
duties.
new
Staff to
sion.
;
his
over
He said that his task
would be to create
preme
leave
soon
Algiers for Britain to take
Allied Su¬
an
run
the big inva¬
>
.
"My
own
and personal job im¬
of course, will be to
do what we have done here. That
mediately,
is to weld the directing team to¬
gether in such
friction
a way
that
no
real
ever
.
been
the
of
the
friction
has
that
typical of Allied actions in
past," he said.
"The
only thing needed for
us
to win the
European war in 1944
is for every man and woman, all
the
way
the
remotest
from
the
front
hamlet
of
line
to
our
two
countries, to do his or her
duty."
According to Washington
full
vices/ Dec.
27
the
to
"Times," Secretary of State Cordell Hull held out qualified hopes
of ending the European war in
1944 when he subscribed
that
on
day in general to the views given
along that line by Gen. Dwight D.
Eisenhower.
we
From
"Times"
the
quote:
"This
said,
provided
come
time
he
made
war.
had
he
pass,
everyone
full contribution to the
the. first
to
It
a
was
discussed
special partner in Hecker & Co.,
Philadelphia, will become a gen¬
eral partner in the firm on Jan. 1,
1944.
"Mr; Hull said at his press con¬
that
Eisenhower
tent
he
was
thought
Gen.
right to the
that, in his opinion,
we
ex¬
would
Chi.
recommended
govern¬
after
convention
experts
be
The
that
States, Britain
study industrial
restrictions
;-7
J.
Megear/
general
partner in Luke, Banks & Weeks,
York
will become a
of Jan. 1, 1944.
James B. Mabon, Jr., general
partner in Mabon & Co., New
York City, will become both gen¬
eral
and
limited partner as of
City,
limited partner as
Jan. 1,
1944.
W. Huntley, general part¬
in
Merrill ^ Lynch,
Pierce,
Earl
on
capital of a
"confiscatory nature."
Valencia Incident
The
Spanish Foreign Ministry
22 expresed deepest re¬
Dec.
gret to the American Ambassador,
tack
by
two
from
Laundon will with¬
partnership
the
in
also
from
stated:
Hayes,
Chester
Simmons,
Exchange,
will
member
of
froip
retire
partnership in G. H. Walker & Co.
Dec.
31.
Mr.
Simmons made
his headquarters at the
York
firm's New
■'/
office.
Percy
Weeks
S.
retired
from
American
the
press
entered
Valencia, tore down
photographs and harangued
visitors
on
stationed
at
the
premises.
the
street
Police
entrance
of the consulate arrested the
two
Senate Acts On War
Goods Excess Disposal
A resolution dealing with even¬
tual
disposition of upward of $75,-
000,000,000 of war materials,
chinery and factories
was
ma¬
passed
by the Senate on Dec. 9 and sent
to1 the House.
;The
&
Armstrong, New York
City, will be dissolved on Dec. 31.
Pollard &
Co., New York City,
will be dissolved
inick &
on
as
of Dec. 31.
Eis, New York City,
dissolved
Elton
died
&
as
Parks,
of Dec. 8th.
partner
in
Dom-
396.42
225.07
70.70
179.38
918.91
Pac.
direct
sponsored by
(Dem., Mont.),
President Roosevelt to
Federal agencies to provide
within three months the first of
1. The types,
cation
and
I
10.919
5s 2000-—-—
adj.
The
and
these allotments will be revised slightly.
been
bonds
mortgage
first
new
is paid in cash,
2% rk interest in
the Terre Haute lease line securities would receive
1 Wo in contingent income.'
• vy:
plan
the
fixed income
RFC loan
the
"provided
2.969
Pac.
&
P.
St.
M.
paid
Divir
issue.
that
on
lien on the entire dends on the new common are
enterprise
excepting equipment prohibited until the preferred has
and will represent a fixed charge. paid three yearly consecutive div¬
will represent a
5%.
of
idends
Mortgage
_
;1
.
Applying the earnings of recent
4^s will be
the same but subject to the first years to the newly proposed cap¬
italization indicates that the new
mortgage. Furthermore, the Gen¬
eral Mortgage "B" 4V2s will be first mortgage issue has adequate
subordinated to the "A" issue in earnings protection although cov¬
the matter of interest, but will erage on the junior obligations was
4V2S
carry
for
stock
the
of
equally with
participate
after $3.50 has
the common stock
Times
in
per
would
share earn-
Earned
Charges
1933
1940
1939
8.6
4.6
3.0
Mtg. A 4!/2s 2019—
4.7
9.6
8.2
3.3
1.5
Mtg. B 4»/2s 2044——
3.6
9.4
8.0
1.9
5 Yr. Av.
1st Mtg.
Gen.
Gen.
mat¬
ings of $18.90 and $7.26, respec¬
tively, comparing with deficits on
both issues for the years 1938 and
1939. The details are as follows:
nqn-cumulative dividends at the
rate *of' 5%" per annum and-will
further
resulted
have
will
operations
1942
stocks,
bond.
The pre¬
be entitled to
each
stock
ferred
the
In
of the preferred and common
ter
common
new
erratic.
somewhat
conversion privilege into
a
shares
10
"B"
and
10.0
4s 1994—
Common
$18.90
$14.00
7.26
4.73
,
conservative
present
the
before,
ing for
ceive under the new plan.
the
new
Valuing
securities as follows:
/
90
General Mortgage A 4V2s———50
General Mortgage B 4y2s——— 40
Preferred Stock
:
1
30
First
4% bonds—i-— 93
A 4V2s_^—i.*.., 60
B 4'/2S-J^50
4s_
Mortgage
—
—
—
Stock—.
Common
10
—
.-44-—U'J.—_u.—1-'-40
Preferred Stock
stock--
following equivalent values
The
.J",
£
•
the'basis
on
"when is¬
than the
less
sued" value of what they will re¬
General Mortgage
Even
sell¬
St. Paul issues are currently
General Mortgage
•
the
for
appraisal
securities most of the present
new
follows:
First Mortgage
Common
.39
None
———.
stated
as
2.1
$1.31
None
stock
$4.80
does
were
•
Share
Per
Earnings
——-1.
stock
Preferred
1941
1942
5.7'
v
'M
;
result:
of;.a ,more
'
.:j;
■
::
A 4s
Actual
■
Total
Mkt.
■-
Value
Value
Mtg.
71
10
30
142
772
Shs.
($100)
40
50
Com.
Pfd.
2039
2019
90
858
100
•'
Est.
B 4 y2 s
1994
Payment
Estimated Value'-:.
Mtg.
A 4'/2S
.1st Mtg.
Cash
.
Gen,
Gen.
'
'
a
1
quantities, cost, lo¬
custody of those
war
real estate and other
tangible property, real and per¬
sonal, owned or controlled by the
Government which, now or later,
materials,
Dominick, New York City, won't be needed for war purposes.
2. The adequacy of current recDec. 21.
-
-
Mil.
North.
Approx.
Mil.
No.
4V2s
1st
worth
Cons.
$100
'39
100
———
4'/2s
73
231
407
338
209
*39
209
204
92
395
224
198
90
ords
21
223
70
>
.
—
690
776
;
'
•
394
327
139
139
294
197
89
328
396
225
295
198
90
21
208
329
396
225
208
296
198
90
21
329
396
650
811
720
71
207
740
21
207
226
226
,
71
•
226
21
368
710
813
71
90
1
'■
;—
—
831
,
;
730
1
lsh.
683
342
11 shs.
—
—
-
—
"'$110
"l
r>:
315
■.
$30
v.
460
372
$10
3 shs.
1,141
informed.
controls
to
the Executive
(
3.| Modifications that
necessary
to make
tion readily
.may be
such informa¬
available.
According
to
the
Associated
acted on a rec¬
ommendation of its Military Af¬
fairs
Committee which warned
Press, the Senate
that Congress
lishing
110
120
.!
a
national policy "on how
amount of Gov¬
this tremendous
ernment property
is to be used.".'
present moment," the
Committee reported, "the inven¬
"At
the
tory control methods of
ous
to
war
the variT
agencies are inadequate
give a-full, current picture of
the types
ment
and amounts of Govern¬
property, let alone surplus
is faced with estab¬ property."
.
-
-L
'
•
919
89
.
225
198
179
296
226
inventory
and
keep Congress and
-
'
725
831
70
295
;J.
22
328
172
gen.
304
172
Approx.
Paul
960
$942
r •
•
worth —i—
A 4s 1989
Approx. wortjh ——
St. Paul gen B 4'/2s '89
Approx. worth
St. Paul gen. C 4V2s '89
Approx. worth
St. Paul gen. E 4'/2s '89
Approx, worth ——St. Paul gen F 4%s '89
Approx. worth —
St. Paul gold 5s 1975.—
Approx. worth —
Chi. M. & Gary 1st 5s '48
Approx. worth
—
St. Paul adj. 5s 2000___
Approx. value
.
St.
'
<»r<nc
Murray
series of studies of:
0.975
1st 5s
legislation,
Senator
Dec. 15.
328.90
a
calls upon
on
70.62
225.60
1,140.60
tUnder
Falangists who were then taken to
New
York,
70.61
224.80
not differ drastically
can
Embassy
from the previous proposal, un¬
Saturday Dec. 18, 1943, at ap¬ der which the issuable securities
proximately 6 p. m., two persons were actively traded on a "when
identified later as Falangists and issued" basis. Average quotations
former
members
of
the
Blue for these "when issued" contracts
partnership in Stokes, Hoyt & Co.,
was
Chi."
As
his head¬
'''\ J V
224.77
395.95
gen.
&
Gary
&
M.
plan
police station near by and sub¬
sequently transferred in hand¬
cuffs to the central police station.
Thomas Moffitt will retire from The ambassador reports that: ap¬
partnership in Jesup & Lamont, propriate representations are be¬
ing made in Madrid and in Val¬
New York City, on Dec. 31.
J.
F.
Flynn will retire from encia by the American repre¬
partnership in Sincere & Co. on sentatives.".
office.
395.89
328.51
70.20
.<
1948
Val¬
at
Consulate in
on
Chi.
the Ameri¬
at Madrid that on
Joseph R. Swan, general part¬
in Smith, Barney & Co., New
York City, will become a limited
quarters in the firm's New York
P.
P.
328.46
207.79
225.60
follows:
has reported to
Division
Dec. 31. Mr. Flynn made
St.
223.47
207.13
1989—
4%s
M.
224.27
393.60
gen.
1989——
St.
&
M.
395.01
326,56
gen.
P.
'Deficit.
American Consul
"The
firm oh Dec. 31.
ner
St.
&
4V2S
"E"
P.
1989—
4'/2S
327.73
Secretary-General of the
Falange, Jose Luis Arrese, also
apologized in the name of the
P'alange."
The State Department's state¬
ment
of Dec.
21
regarding the
incident
reported
by
Ambas¬
encia
draw
advices
Press
the
Said
promised.
was
which
"The
of
Punishment
18.
Associated
Madrid
Valencia
consulate' in
men
1944, on which date Almar H.
Shatford, general partner, will be¬
come
both a general and limited
partner. Robert A. McCord and
Elizabeth B,
Hayes, over an at¬
Falangists on the
two
Dec.
on
Beane, will become a
partner effective Jan. 1,
&
limited
H.
J.
Carlton
70.45
172.16
gen.
The lien of the General
sador
Fenner
gen.
P.
St.
&
M.
M.
"F"
>'
welcomed
resolution
foreign capital, and suggested that
investors have exchange freedom.
The resolution opposed
govern¬
ment
St.
&
"C"
Chi.
development.
Another
P.
1989—
4s
M.
Chi.
sent to the United
to
St.
'
tl,000
1st 4s '51
Ry.
&
M.
139.21
industrializa¬
in
urged.
American
Thomas
Scheer
military operations.
ference
a
on
ner
Ind.
So.
Chi.
Canada
f 1,000
1938
Chi.
ment central bank patterned
increase
1st 5s
also '■ recom¬
mended the creation of
was
tl.000
1960„__—
5s
inc.
72.62
$231.17
ti.ooo
& S.
Haute
Terre
E.
407.16
& S.
1960—
5s
Bedford Belt Ry.
"A"
suggestions.
convention
the New York Stock Exchange, a
Kerr
might
Ministry yvould be a
coordinator in carrying
a
Spain Apologizes For
the
ad¬
York
New
be¬
general
partner in Goodbody & Co., New
York City, will become a limited
partner, effective Jan. 1, 1944.
Oscar C. Schmidt, member of
Peirson,
develops, that peo¬
partner, effective Dec. 31, 1943.
ple trust each other, work in uni¬
Claire G. Hoffman, limited part¬
son and
go into this thing with
ner in Walston, Hoffman & Good¬
full weight.
I believe we have
win, San Francisco, will become
developed
here
that sense • of
both a general and limited part¬
partnership which has come as
ner, effective Jan. 1, 1944.
near as humanly possible to elim¬
ination
men
1st
Chi.
$141.77
>■337.81
Cons,
Haute
Terre
E.
$858.23
208.67
North.
1939
"A"
Lawrence
New
reporting his remarks, Asso¬
ciated Press advices from
such
Business
Chi.
but
broker.
A.
Gen.
created.
The
a
the constitution
in
out convention
bership of Bertram F. Brummer,
$48,621,000."
for
Economy, which is pro¬
for
never
and
,
partner in Salomon Bros. & Hutz-
who
National
vided
lieve
recommenda¬
Ministry
of
outstanding
calls
Chi.
1, 1941, by savings
associations aggregate
and
The
tion
$100.50.
&
No Par
4'/2s
1939
4'As
Com„
$100
*
—_
1st
No.'
&
Milw.
Milw.
tion
Exchange
The New York Stock
loan
RFC
Pfd.:
4v2s 2044
4'/2s2019
$1,000
Equipment & trusts—
further
"Times"
York
said:
An
Weekly Firm Changes
sales since May
War
assets.
all
of
Rio
New
the
States.
Exchange
Bond
21.6%
indicating this a dispatch
de Janeiro, Dec. 18, to
from
1994
:
Mtg. B
Mtg. A
Mtg. 4s
turbed
Payment
Old Company
Gen.'
Gen.
Undis¬
Cash
in¬
the following:
will receive
the'
from
arise
may
South
holders,
amount of old So. Paul securities
1st
the Federal Reserve of the United
changes:
*
we
optimistic
about the termination of hostili¬
ties." '
has
"The liquid resources
In
too
should not become
opposition
line
the holders of each $1,000 par
so,
securities.
resolu¬
of
adoption
lease
&
opinion suggests that this
latest plan will be approved in
substantially its present form. If
principal distribution in
Although some
duces the
dealing with post-war eco¬
valuable
counseled,
Hull
Mr.
"But,
the
Eastern
Haute
Terre
formed
excepting
that
the
substantial
cash
distribution
obviously re¬
new
~
Chicago
posal does not differ too dras¬
tically
from
the
plan
which
reached the U. S. Supreme Court,
nomic matters.
the
behind
port of the war.
for
monthly-payment reduction
those
especially
lines, redoubled their efforts in
giving support to those who were
carrying on the fight and if they
promoted a greater state of unity
in their cooperative efforts in sup¬
100,000.
November
the battle fronts,
on
with
18
tions
Thursday, December 30, 1943
CHRONICLE
THE COMMERCIAL & FINANCIAL
2658
...
.
;
•
VolumeK158^Number >4242
THE COMMERCIAL & FINANCIAL CHRONICLE
;'vvV'V:y--^
writers./ Others will be named* by amend¬
ment.';, ;
'
•
Calendar Of
;
the
,
OIL
Standard
Oil
; registration
.number
Co.
of
Ohio
for
of
mon
"
:
filed
OHIO
has
101,389
*
at'$100
shares,
-
shares/of
The
stock,«par
common
3
per-share. The dividend rate on the
preferred stock will be supplied by amendment.
The, shares
meet
ltd
the
of
stock
common
conversion
privilege
preferred stock and will not be
separately.
The conversion rates
,
,
/filed
I
amendment.
by
Ohio.
;
T-
.V.;'/•:/''
Building,
offered
will
L
refining
be
of
crude, pe¬
Offering—Rights
preferred
•
stock
stockholders of
later ;
the
at
Issued
be
record
a
rate
ferred for each
at
purchase
to
will
of
date
be
to
new
of
-
pre-,
stock,
price to be fixed by amendment. The
unsubscribed stock will be purchased - by
a
the underwriters and
at
price
a
to
offered
be
filed
the
to
public
amendment.
by
Stockholders
of the company are to meet
22, 1943, to approve the new issue
§10,138,900 of cumulative convertible
preferred
stock
and
488,888
additional
oh
Dec.
of
shares
of
which
stock,
would
be
producing
portion
a
reserved
preferred.... Any
served
oil
common
to-be
are
the
of
for
shares
available
for
properties
of
conversion
not so re¬
issuance for
and
for
I.50%;.
be
added to the general
to
pany
be
available
funds of the
A-2.
&
$100
Subscription
of
&
Co.,
1.50%
Co.,
an
Merrill,
Weld
&
Co.,
Ohio
has
filed
The
per
share.
will
warrants
•
be
•
•.
rate
stockholders
stock
the
to
the
public
and
90%
14,. 1944.
The
will
will
be
the
any
of
such
not
Proceeds
deposited
15,
the
share
per
standing
prior
purchase
to
and
pensation
fering
to/the
price
ment.'
be
Public
named
by
We
Broad
Street
registered
100,000
shares
■i effective
soon
date
of
York
Proceeds—For
as
!v 4"r
investm ent.
value
par
Issued
sent
statement.
;
Service
Corp.
of
homa,
rata
$1
tration
insurance,
'•
Olive
*
''
.
in
engaged
by
of
5%
Street,
are
repre¬
St.
transportation
of
water
effective
15,
1943,
of
stock
Subscriptions
in
the
case
shares
exchange
share and
said
filed
has
Texas
per
15,000
shares,
Worth, Texas;
ice Go.
Business—Public
'•
•>-'/
corporation, w',.
Pipe & Supply
underwriter,
-V''-':
will
be
no
principal
utility
Pa., is
registrant.
of
parent
Offering—There
underwriter,
the
prospectus
the
price
Atlas.-
the
but
bonds
received
by
Pipe & Supply Co.; parent of
will- be offered to holders of
registrant,
its
preferred
The
the
stock
stock.
take
underwriter
.the
all
underwriter
at
exchange
for
securities
is
shares
the
of
is
not
bound
registered.;-'; The
however,.. of
owner,
.
preferred stock of
has agreed to accept
registrant and
the bonde registered in
registrant'si preferred stock
owns.,-
to
the
exchange
par
for
same.
is to be $100 par of
for $100, par value of preferred
The
24,096
the,
in
basis of exchange
bonds
which
■
it
-'
.
^Purpose—The
fered
securities
to-
are
be
of¬
by the registrant in exchange for
outstanding preferred stock and by the
underwriter (Keystone Pipe & Supply Co.)
,
.
its
in
exchange
stock.
par
in
value
preferred
ferred
in
its
for
The basis
the
each
bonds
stock.
stock
outstanding
in
of
amount
The
for
preferred
is
case
one
$100
balance
of
(12-21-43.)
:)
PUBLIC
:
$100
par j.
the
of
pre¬
the .registrant outstanding
of $5,875 will be called in
by the registrant and retired, ,,''/ J Registration Statement No. 2-5274.
S-l.
Public Service
CO.
Co.
OKLAHOMA
of Oklahoma has filed
registration statement for $1,500,000 5%*
preferred stock, cumulative, par $100 per
share, and $6,600,000 first mortgage bonds,
3V4%, due Feb. T, 1971.
Address—60O
Okla,
South
■
Main
••••'
Street,
Tulsa,
.
which
is
for
exchange
purposes.
number
as
the
to
$100
purchase from Okla¬
share
and
accrued
per
shares
of
said,; 15,000
preferred, less such number
5 %,
of -shares
thereof in
of
excess
5,000 shares
may be. subscribed for, pursuant to the
exchange offer.
No
underwriting com¬
will be paid by the company in
connection with the exchange offer.
Of¬
fering price of, bonds will be filed after
as
missions
the
result
filing
,
of.
of
competitive bidding by
post-effective amendment.
a
Proceeds—Pursuant
to
the
1943, by., the Securities & Ex¬
Commission, Oklahoma will, upon
of Southwestern, principal
holding/.v company, of Oklahoma, /acquire
assets of Southwestern subject to the lia¬
bilities of Southwestern at, date,of-acquisi¬
tion./Oklahoma will,acquire the properties of
the subsidiary
subject to $6,648,000 i face
amouni of the subsidiary's, first mortgage
change
dissolution
The
Series
3%%;
A.
due
Dec.
1,
1969.
net
proceeds, to be received by Okla¬
homa from the sale of the bonds of Series
A
of
with
registered, Together
the
company,
redemption,
to
are
105%
at
be
of
,
general; funds
'applied
to. the
such',; bonds
of
subsidiary. ;'
Registration Statement No. 2-5275.
A-2.,'. (12-21-43.)
Form
-
VIRGINIA
^
filed
a
Virginia
PULP
Pulp
registration
&
the
&
155,830
shares of cumulative preferred stock, 4(4 %
Series,
par
value $100 per share.
Address—230
City.
Park
1
-.
Business—Owns
integrated
of
collateral
mills,
white
products,
•"
papers,
of
in
York
'■
six highly
the
manu¬
kraft papers with
certain
by-products
i..
;
operates
and
•?:4;.yr•);.,'
chemicals
other
re¬
the
present
value,
be
to
be issued
under
St.
Avenue,
in
the
connection
with
the
Parker
117,460
additionali ! shares
stock,
the
shares
15,
ratio
then
by
held,
at
3
for
price
a
The
at
expire
to
15,
a
'
Proceeds—The
It
p.m.
net
It
is
additional
and
construction
hangars,, the
other
stock
hereafter
may
flying
tions
As
available
before
the
for
flying
available,
in
carrying
a
position
sufficient
out
the
the
of
program,
may
the
war*.
to
needs.
the
must
place
In
company
equipment trust certificates, or other
financing, although the company has no
plans for any such other financ¬
present
;,'■/■/
.
\
/
4; Underwriting—Harriman Ripley &. Co.,
Registration Statement No. 2-5279,
Inc.', New York, heads the group of under¬ A-2,
(12-23-43.)
Form
date
holders
of
not
less
ment of
any
commitment for the purchase of
stock not subscribed for by
a
common
common
stockholders
the
and
issue
and
sale
of the new senior debentures is con¬
tingent upon the exchange offer being de¬
clared effective bv the company.
Proceeds—The proceeds to the
of
the
company
debentures and shares of
stock offered will consist of shares
preference
stock
exchanged and
income
the
such
shares of preference stock
retired
and
will
reduced
be
each
share
plus
retired.
will
$1
be
the
of
each
and
share
offer,
from
will
the
of
sum
capital
sur¬
credited to capital
by such share.
;
represented
be
company
$100 for
of
sum
For
deducted
account
count
capital
by the
issued pursuant to
common
of
the
ac¬
.
Registration Statement No. 2-5241. Form
S-l.
(10-27-43).
Amendment filed Dec.
13,
1943,
effective date.
DERBY GAS
of
to defer
:
&
ELECTRIC
CORP.
Derby Gas & Electric Corp., a subsidiary
Ogden Corp., registered 91,577 shares
outstanding,
They
company.
Corp.,
public
with
to
are
be
sold
part of its plan to
as
utility
the
Act Of
already issued
the shares are not
for the account of the
and
or
investments
Public
by Ogden
dispose of its
in
accordance
Utility Holding
Company
1935.
Address
■■
One
—
Exchange
Place,
Jersey
City, N. J.
Business
and
sale
The
—
primarily
the
in
of
is
company
engaged
distribution
generation,
electric
and manufac¬
energy
tured gas.
1440
and
develop
community
a
will
be
bursed
to
and
it
the
cor¬
of
as
cash
July 15,
1943.
proceeds
If
from
the
be
dis¬
$150,000.
proceeds
will
follows:
liquidation of general
$40,000;
operating
capital,
general cash reserve, $60,000; re¬
for
000.
Price
property
acquisitions,
unit
per
cash
is
(9-15-43).
Bids Invited—The Ogden
Corp. is invit¬
ing sealed written proposals for the pur¬
chase from it of 91,577 shares, as a
whole,
of no par shares of
Derby Gas & Electric.
Corp.
Proposals are to be submitted to
Ogden Corp., Room 510, 1 Exchange Place,
Jersey City, N. J., before 12 o'clock noon,
EWT, on Jan. 3, 1944.
Registration statement effective 3 p.m.,
EWT, on Dec. 18, 1943.
reor¬
put
as
serve
later.
Registration Statement No. 2-5213. Form
FLORIDA
plans
indebtedness,
$5,000;
ment
S-l.
lease.
structure
Proceeds—Cash
for
$1.60,
and
etc.,
securities
with
$45,to
be
under¬
no
commissions.
POWER
Florida
Power
with
and
140.000
LIGHT
A
&
Light
CO.
Co.
registered
SEC
$45,000,000
First
Mortgage
bonds, due Oct. 1, 1971; $10,000,000 Sinking Fund Debentures,
due Oct. 1,
1956;
Stock,
shares
$100
Bonds
Cumulative
Preferred
rates on the
and
rate
Par.
Interest
Debentures, and the dividend
the preferred stock, will be
sup¬
on
plied by amendment
Address—25
Fla.
3.
E." Second
Ave.,
Business—This
:
subsidiary
of
Power
&
Light
(Electric
Bond
Miami,
American
&
Share
8ystem) is an operating public utility en¬
gaged principally in generating, transmit¬
ting, distributing and selling electric en¬
ergy (also manufacture and sale of gas),
serving
east
most
coast
of
of
the
territory
Florida
along
the
(with
exception of
and other portions
Registration Statement No. 2-5268.
Form
S-l.?, i (-.12^7-43.)
Statement originally filed
in San
)
the Jacksonville
Underwriting and uffenng—The securi¬
registered are to be sold by company
under the competitive
bidding Rule U-50
Francisco.
Amendment
filed
Dec.
24,
1943, to defer
effective date.
•
of
PRODUCTS
CORPORA¬
TION
Florida
a
4%
Products
registration
Corporation
statement
cumulative
income
for
has
$6,737,-
debentures
(subordinated) to be due Oct. 31, 1973;
134,746 shares of common stock, $1 par
value, and certificates of deposit for 67,373
shares
of
6%
cumulative prior prefer¬
stock.
ence
Address—120 South, LaSalle
cago,
Street, Chi¬
consists
generally of
manufacturing and selling asphalt roofing,
shingles and related products, wallboard
and
the
EEC's Public Utility Holding Com¬
Act.
Names of underwriters and
to public, will be supplied by posteffective amendment to registration state¬
pany
gypsum
products, boxboard and vari¬
other products.
ment
Proceeds
will
be
applied
as
follows;
$53,170,000 to redeem at 102Y4, the $52,000,000 of company's First Mortgage 5s of
1954; $15,693,370 to redeem at $110 per
share,
$7
the
142,667
preferred
tails
111.
Business—Business
ous
:
price
Certain-teed
filed
300
area),
ties
of
CERTAIN-TEED
opera¬
of
; -/
record
issue
of
may
find it necessary to provide addi¬
tional funds through the sale of additional
securities, bank borrowings, the issuance
ing.'/;- V
of
subscribed,
discounts
company
its
Building,
wholly,
on
a
common
exchange features of the
The
writing
equipment
other
promptly
for
of
share.
per
that addi¬
commercial
and
regis¬
a
shares
$1
par
limited to holders of
are
the
equipment
termination
additional
becomes
be
other
and
not
for
acquired br
company.
It is
participated in by the
probable, although not certain,
if
offered
be
306,305
company
fully
machinery and other facilities in connec-,
;tion with its present routes and such new
as
has filed
for
Syndicate
flying,
purchase
Inc.,
capital
basis.
holders
de¬
equipment,
the
57,250 shares of the preference stock
the offer.
The proposal to issue
common stock purchase warrants to
pres¬
ent common stockholders and the procure¬
'A-
filed
poration's outstanding 6% preferred stock
and to holders of its 8 % unsecured notes.
The offering for cash is limited to stock¬
is. expected funds will be used
of
its
offering
will
considered
communications
routes
date
INC.
stock,
and mineral
gas
virtually,
will
proceeds
Oilfields,
common
Offering—The
Jan.
on
group
OILFIELDS,
A
ganize
price to be named
entire
acquisition
of
Atlas
Underwriting—None named.
be
'
Government.
the
from
effective
certain, properties held under
company
at this time
proyide. itself with funds with which to
meet its future responsibilities and
oppor¬
-
defer
statement
oil,
sirablethat -the
tunities.
presently is¬
being pur¬
are
Broadway, Oakland, Cal.
Business—Organized to drill
available for general
corporate purposes
pending specific application of such funds,
and
it is expected
they will be invested
temporarily in securities of the United
for
for
"
to
Address—912
be
States
York
stock.
1943.
Buttes
each
to
of
than
being offered by
New
underwriters
certain
a
indebtedness
and
underwriter
are
other
Atlas
class
subscription
underwriting
the public at
amendment.
shares
tration
purchase the unsubscribed shares and offer
them
within
to
The company reserves the right
the
offer
of exchange unless
the
(10-29-43).
&
common
share
one
amendment.
will
1944.The
;
of
of
and
revoke
of its common stock without
par value with
the
SEC.
This
stock
is
Registration Statement No. 2-5245. Form
Offering—Holders of record at a date in
January; to be named, of the company's
common? stock
will
be
given , pro
rata
rights ,to subscribe to
an
aggregate of
warrants
Co.,
^exceed
debentures
in
stores
common
not
subordinated to (he new serior de¬
the
4
and
has not been
will
income
of
war.
Auchincloss,
—
the
Co.
Amendment
Redpath
head
the
underwriting
group.
Others will be named by amendment.
named
specialty
The
by
BUTTES
two
to
,
York
one
v;v
outstanding and
Steel
Dec.
in
'.v
-
New
$5,500,000
Underwriting—Ogden
Corp.,
after
the
Corporation, directly, registration becomes effective, will publicly
and
indirectly, has been the controlling invite sealed proposals for the purchase or
stockholder of the company since its or¬
underwriting of these shares.
The result
ganization.
'■■;/• of the bid opening will be filed by amend¬
Proceeds—Proceeds will go to the selling ment later.
stockholders.
Offering-—Terms will be filed by amend¬
tric
;
University
'/..'...:/;
States
Underwriting
v'
sell
Corporation and its subsidiary Rotary Elec¬
stock¬
common
to
and
chased
of
offered
par
will
stock.
the
of
large
preferred
sued
a
shares
A-2.
United
'
Offering—The offering price to the pub¬
of
both
the
preferred and common
will be supplied by amendment.
The
prospectus
offers
the
35,565
shares
of
5(4% .preferred and 20,000 shares of com¬
Business—Engaged in air transportation
prosecution
the
lic
with respect to persons, property and mail,
and in the performance of contracts with
orders
New.
Avenue,
'■
engaged
production
and .chemical
lated
■
and
Minn.
4,
become
for
both
j
filed
139,460
without
the balance
.Address—1885
Paul
of
contingencies.
Avenue,
Underwriting—Allen &
City, is named principal
Form
"(V:\
■
certain
Fifth
-United .States.-- ■'
sell¬
,
has
for
shares
company's,
holders and
options;,-'
tional
PAPJER CO.,
Paper Co.
has
statement
INC.
Inc.,
stock,
117,460
of
and
common,
serior debentures
but
The
annum.
company.
stock
AIRLINES,
be
bentures
preferred
Business—Owns and operates
shares
the
conversion
convertible
city.
-
Airlines,
common,
which
in
December,
bonds,
to
event
outstanding
(12-23-43.)
of
.
the
such
go
the
Address—721
to
the
at
in¬
reserved
common
the
ing by the company.
the
resale
of
common
latter
registered, at the pfesent rate of
which may vary from time to
mon
by
.
authorization
will
statement
of
2,500 shares
pursuant
also
of
10,000
of
facture
:
Business—Engaged principally in gener¬
ating, purchasing, selling electric energy
and also natural, gas and selling water;
•,
Underwriting—None involved in. issue of
stock
shares
WEST
a
Series A,
has agreed, to
homa,
at
dividends,
West
OF
such
of
for
of
shares
upon
of
The
The shares are issued and outstanding and
the offering does not represent new financ¬
regis¬
keymen
purchases
stockholder.
Northwest
pro
2,500
it
and
Proceeds
registration
than
Form
i
•
less
excess
subscribed
..C;
'•
SERVICE
West
that
by
under
theLPurposa
officers
NORTHWEST
accept the
Corp.. has
dividends,
offering
shares
share.
cumulative
time in
50,000)
Registration Statement No. 2-5278.
Okla¬
more
its
from
like
reduced
of
the
108,913
and
new
determined,
per
all
INC.
per
shares of
the new senior debentures
will
conversion,
in¬
Atlas
$1
issuance
stock
Mis¬
the
by
is
to defer
1943,
condi¬
20-year 5(4% sinking fund
debentures, Series A, due March 1,
now outstanding.
The interest rate
common
88,913
for
5(4%
contemplates
pur¬
shortly
after
the
Atlas
for
of
with
held
27,
certain
amount of
-
and
par
cludes
Dec.
of
(not exceeding
company
of
same
ing
total
from
prospectus,
parent
connection
Dec.
TELLER,
value,
par
shares
by Atlas
shares
offered
22J.000
completion
certain
power
the
Inc.,
Bonwit Teller, Inc., has filed a registra¬
tion statement for 35,565 shares of 5(4%
cumulative convertible preferred stock, $50
constituting
of the com¬
owned
the shares
chasing
principal
of
voting
of
as
277,612
Atlas
The
which
record
company,
stock
in
tration.
includes
to
exchange offer, and American Public Serv¬
named
the Keystone
be
may
/"
'Underwriting—Keystone
Butler,
be
Middle
<
accrued
shares thereof in
Co.,
to
holders
Southwestern
of
offer.
shares
the
making
sissippi.
The
cludes
of
the
pany,
of
for ;a
of
39.66%
Corporation
owned
of
filed
of
the
apply
of
BONVVIT
;
-
trust.
investment,
date.
stock,
shares
.
amendment.
St. Louis, Mo
Fund,
that
accept
freight
Underwriting—To be furnished by amend¬
by
insur¬
•'■:. /',:;
Registration Statement No. 2-5270. Form
C-l. (12-10-43).v
■
V-,/'/':'■/■
the
Mississippi,
Ohio,
Monongahela,
Allegheny and Kanawah Rivers.
Proceeds—Atlas
payment
without
■-/'— / /
sponsor.
Amendment
the
$100,
■,
Proceeds—For
Louis,
carrier by
common
installment
of
■
Offering—Date of proposed offering Dec.
7, 1943.
Offering price 100. '
'
a
4,000
Underwriting—Associated
stock,
shares
regis¬
a
5,000 full paid certi¬
Business—Investment
on
com¬
value,
Southwestern
preferred
registration statement for $800,000 ,5%
25-year first mortgage bonds.
;
Address—Burk
Burnett
Building," Fort
;i
held
par
units
■/,.;;
■
named
ment.
offering
publicly
without
and
certificate
additional
to
gold
us.
has filed
states
under
proposes,
face
issue*
ficate units of $100 each; 1,000 installment
certificates of $100- each,
with
has
Co.
208,446
finally
Address—506 Olive Street,
common
The
Fund, Inc.,
two
share
tions, to issue to the holders of the 625,340
shares
of
common
stock
presently out¬
standing, common stock purchase warrants
entitling the holders in the aggregate to
purchase, at a price to be announced later,
4(4%
statement for
and
each
the proceeds of the sale of
the new senior debentures,
together with
other funds, to the
redemption of the out¬
standing debentures.
There are $7,100,000
payment
11
outstanding and do not
financing by the company.
Address—1017
p.m.,
at
to
company
debentures
stock for
; statement
and
of
the
prior preference stock. The
conditions,
to
issue
principal amount of
FUND, INC.
Associated
,v
.
Line
Barge
share.
per
Business—Is
agreed to purchase from Oklahoma at $100
'
TEXAS
a
Vv:;
is
company
24,255
shares
such
15,000
of
of
preferred,
number
'v/.v'■.
SERVICE CORP. OF
Public
$6
of
SUNDAY, JAN.
PUBLIC
sale
unknown
are
ASSOCIATED
Form
and
new
Mo.
subsidiary of Oklahoma, the right/to exr
change, on a share for share basis, 15,000
/>/1
(12-15-43.):,;.
for
Southwestern Light & Power Co.;
after
Registration Statement No. 2-5271. Form
A-2.
holders
of
"
,
offered
Offering—The
the
City.
practicable
registration
Jr:
market,,
At
capital stock.
New
of the open-end type.
Offering—As
/
investment J. com-,
v
.
of
Broadway,
Business—Diversified
be
or
income
common
registration
of
of¬
X-"/
■
Mississippi' Valley
/(■'/';//''''\7
will
list
a
of
shares of
6%. cumulative
1948,
effect
exchange
and
re¬
of -outstanding preferred stock.
registered 227,000 shares of
petitive bidding and names of underwriters
will be supplied by amendment,
Investing Corporation,;,has
Address—65
pany
Bonds
-
below
for
to Issue and sell such shares of common
stock not taken up by the warrant holders.
The company also proposes, under certain
OF OFFERING
present
mined
MISSISSIPPI-' VALLEY BARGE LINE CO.
.
CORP.
Form
registration statements were filed
days or more ago, but whose
offering dates have not been deter¬
amend¬
:
TUESDAY,' JAN.
•
INVESTMENT
with
twenty
ance.-
list of issues whose registration state¬
MONDAY, JAN. 3
$3,150,000,
of
out¬
dividends.
underwriters.
will
,
(12-21-43.)
.
A-2.
STREET
notes
of
whose
closing date,
shall not exceed
accrued
Registration Statement No. 2-5276.
S-l.
days.
These dates, unless otherwise specified, are as of 4:30
P.M.Eastern War Time as per rule 930 (b).
Offerings will rarely be made before the day follow¬
ing.
■vlir;"
j
; i-";v-^ ■ v? V:
BROAD
payment
UNDETERMINED
share
amount
-
the
DATES
Pprpose—To
days ago. These issues
are grouped
according to the dates on which the registra¬
tion statements will in normal course become
effective, that
is twenty days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
certain foreign public authorities which
normally become
-
To
—
bank
initial
*T;.'//';-■/^•• ■";T/ v'';
demption
preferred*
first to
seven
■
-
Underwriting agreement provides for com¬
ments were filed less than twenty
effective in
mon
underwriting group,
to be supplied
by
a
and
Offering—Price to the public to be Sup¬
a
;
-.
commission
a
income debentures and shares of com¬
stock on the basis of $100 principal
new
Co.,
Registration Statement No. 2-5280.
(12-24-43.) '■
the
price
share
per
others
&
S-l.
plus
per
the
of
Dillon
dealers
holders of the outstanding 67,373 shares of
its 6%
cumulative prior preference stock
the right to exchange such shares for the
en¬
prepayment premium and accrued interest,
and to increase
working capital.
: ,
'
(exclusive
$100
over
at
1943;
of
any,
dividends)
shares
$104.50
plied
Following is
selected
deposit of shares of preference stock pur¬
suant to an offer of exchange.
Offering—The company offers
to
the
Avenue,
Offering—Price to the public to be sup¬
plied by amendment.
will
any
1944,
offering made by the underwriters
such
but
if
excess,
offering; price
accrued
on
Turben
supplied
Allegheny
supermarkets
head
names
amendment.
expire
company
15,
dividends from Nov.
of
public
of
2%;
Registration statement effective 3:15
EWT, on Dec. 23, 1942.
^
by
•
York,
with
preferred
the
annual
per
share.
The
underwriters
agreed to purchase any of the 4(4%
preferred not
issued
in
exchange
accrued
unsubscribed
amendment.
East
Underwriting—Eastman,
New
of
presently -outstanding preferred,
purchase .price
of
$100
per. share
2
on
to
regis¬
a
gaged in the retail sale of groceries,
meats,
products, vegetables, etc.
1944, the date
shares
for
and offering pride,
rate
common
.
issued
dividend
conversion
Inc.,.. filed
meat
for*
dividend
series
'■
an
Stores,
Address—2223
exchange at the callable price of 106.50,
equivalent
of
$1.50
quarterly
have
Stanley & Co., 10%;
& Co., 1.25%.; Ohio
Murch
Fair
Philadelphia, Pa.
Business—Operates
Merrill Lynch, Pierce,
2.75%;
or
:■
1959.
ad¬
including
Mellon
;
share
dividend
a
for redemption on Feb.
the shares of preferred
for
filed
has
be
,
Jan.;
p.m.,
•
of
its
at
&
Morgan
H.
White,
and
proposed issue of 101,389 shares of 4%%
cumulative convertible preferred stock, par
value $100,
Ohio
for
dividend
-.redeemed, at
6%.:Exchange offer
of
rate
call
1%; Paine, Webber, Jackson & Curtis,
2.75% ; Arthur Perry & Co., Inc.; 1.50%;
Shields & Co., 2.50%; Smith,
Barney &
Co., 4%; Union Securities Corp., 2.50%,
registration statement
which it gives the offering price on its
in
2%;
Co.,
will
3
fot
Co.,
for
-
Oih Co.
to
Marks
Beane,
Maynard
com¬
'
(12-8-43)
Standard
of
Co.
Corp., 4%;
&
Fenner
unexchanged
stock
its
to
M.
Securities
working capital,
capital expenditures and general corporate
purposes,
' :
Registration Statement No. 2-5267. Form
amendment
when
and
McDonald-Coolidge
Laurence
other
corporate purposes.. ■
;'//
t
Proceeds—Net proceeds from sale of the
cumulative convertible preferred stock will
the
right to exchange
the quarter ending Feb. 15,
registration statement
listing the underwriters on the proposed
offering of 101,389 shares of ^cumulative
convertible preferred stock (par $100)
as
follow's-: F.::s. Moseley & Co.',. 10%; Blair
& Co.,
1.50%; Blyth & Co., Inc., 4%;
H. M. Byllesby & Co., Inc., 1.25%; Coffin
&TBurr, Inc., 1.25%;' Curtiss, House &
Co;.;' 0.75% ;, J- M, Dain & Co.," 0.75% ;
Paul H.": Davis & Co.,: 1.50%; Estabrook fc
Co.V 1.25%; Fahey, Clark & Co.; 0.75% ;
Field, Richards & Co., 1% ; First Boston
Corp.,
10%; First Cleveland Corp.,. 1%;
Harriman Ripley & Co., Inc., 4%; Harris,
Hall & Co., Inc.,-2%; Hawley, Shepard &
Co.,
2%;
Hayden,
Miller
&
Co.,
3%;
Hayden;, Stone & Co., 1.25% ; Hornblower
& Weeks;" 2.75% ; W. E. Hutton & Co., 2%;
Kidder, Peabody & Co., 2.75% ; Lee Higginson Corp., 4%; Mackubin, Legg & Co.,
named
of common
Oil
Underwriting—Paul
H.
Davis
&
Co.,
Chicago, is named principal underwriter,
dealer, manager . and company will pay
INC.
.
cise
certain events.
in
'Standard
amendment
common:
share
one
shares
8
the
to
1954,
common
cash
preferred
stock,
4(4%
series, will give the stockholders who exer¬
and
to
share
a
a
together with
the,-cumulative
at the rate
ejach share
thereafter, subject • to
15,
of
preferred
adjustment
principally
preferred
convertible
shares
two
-
Of-such
troleum and products derived therefrom.
Underwriting—F. S. Moseley & Co., Bos¬
ton, is named principal underwriter. Others
i will be named by amendment.
' 1
}■;
at
expire
: '
convertible
on
Food
cents, which adjustment,
the dividend receivable on
f
Jan.
including
:m ;
are
will
The
•
cumulative
Cleveland,
marketing of
end
warrants
subscription
registered,
STORES,
tration
statement
for
$3,500,000 15-year
3(4%, sinking fund debentures, due Feb. 1,
justment of 37(4
of record.
•
r" ;
Business—Direct activities
•the
are
.'',/■/..
Address—Midland
held
'together with
basis,
eight
so
stock
p.m.,
-
the
of
each
for
share
one
common
Jan; 5, 1944.
'•
preferred
stock is
at
the
option of the holders" into common
stock, at the rate'of 2.33 shares of com¬
mon
stock
for " each'.- share'; of414%
$25
;
of
rate
of
shares
series
FAIR
'
its outstanding
155,830 shares of 6%
cumulative preferred stock, the right to
exchange such shares for shares of 4Mi%
right to subscribe'
the new preferred
them the
share.for
per
it-, the
preferred stock,
an
indeterminate
and
FOOD
of
company to holders of record of • com-stock at the close of business Dec. 23,
1943, : giving
a
convertible
value,
par
OF
statement
/of -cumulative
,$100
CO.
WEDNESDAY, JAN. 12
.
.
.Offering—Company will offer to holders
OFFERINGS
STANDARD
2659
to
be
shares
stock, no
supplied
par.
by
of
company's
Further de¬
post-effectlva
amendment
Registration Statement No. 2-4845.
A2
Form
'9-17-4D
Amendment filed Nov. 23,
effective date.
1943, to defer
(This list is incomplete this week)
!
HAnover 2-0050
For Dealers
Teletype—N. Y. 1-971
\
Firm Trading
A Happy
.
.
.
Markets
Telecoin
BONDS
SOUTH AMERICAN
$5
40,000 Shares
no. inc,
parl marks &
10c. par
FOREIGN SECURITIES
:
,
To All
Stock
Cumulative Convertible Preferred
par
'
•
New Year
Corporation
20,000 Shares
all issues
*
Thursday, December 30, 1943
CHRONICLE
THE COMMERCIAL & FINANCIAL
2660
M. S. Wien & Co.
Common Stock
SPECIALISTS
======
AFFILIATE: CARL MARKS & CO. Inc.
CH1CAG0=
25 Broad St., N.Y.
Kobbe, Gearhart & Company
INCORPORATED
Members
Pelley, President of the Association of American Railroads,
statement authorized on Dec. 28, says "railroads in 1943 handled
J. J.
Further particulars as
it," he added.
follow:,
Freight
traffic
moved
by
the
in
5
OR
bell teletype
telephone
1-576
tors
new
MUTILATED
•/.
the $>-
current
year
amounted to 725,000,000,000 tonmiles.
This was an increase of
14% above that for 1942, the pre¬
vious record year,.and 117% more
railroads
U,::
V,V
NEW' YORK
Enterprise 6015
2-3600
REctor
COUPONS MISSING
%
Association
Dealers
Security
STREET;
philadelphia
telephone
their history."
them in doing
given in Mr. Pelley's statement
York
New
NASSAU
45
greatest volume of freight and passenger traffic in
"All previous transportation records were broken by
the
480
428
miles
in
1942.
The average
6.
Inquiries invited
Commerce-Industry Ass'n Opposes Kilgore Bill
1943, compared with
miles in
As
number of pas¬
S. H. JUNGER CO.
Giving Arbitrary Control Over Production
Members
and per train was
Charging the Kilgore Bill. (S702) as designed "to create a polit¬
than ever before, j ical mechanism which would drastically change the economic
daily movement of structure of the United States," the Commerce and Industry Associa¬
than in 1939.
It was more than
both freight and passenger loco¬ tion of New York. Dec. 20 went on record as strongly opposed to its
1% times the volume moved in
motives attained a high record,
passage and requested a hearing.
1918, the peak year of World War
The Association filed its statement with the Senate subcommittee
I. Freight car loadings in, 1943 ap¬ that of the former being 125 miles
Compared with 122.4 miles last of the Military Affairs Committee.'®
proximated 42,350,000 cars, a de¬
year and the latter, 220.3 miles now holding certain hearings on
crease
of .475,000 cars or 1.1%
gineers of many classifications,
below 1942.
Heavier loading of compared with 206.8 miles one the proposed measure. Association shipmasters, pharmacists, archi¬
year, ago.'
:•
tects, insect exterminators, and a
freight cars and longer hauls per
Secretary Thomas Jefferson Miley
8. Average revenue for hauling
ton accounted for the increase in
requested appearance of an Asso¬ host of other scientists and tech¬
a
ton of freight one mile was
the ton-mile volume o£ freight,
ciation representative in a letter nologists are subject to govern¬
contrasted with the decrease in 0.933 cents compared with 0.932 to Senator Harley M. Kilgore, the mental regulation appropriate to
in 1942.
These averages are the bill's
the number of cars loaded.
.proponent. Senator Kilgore the needs of the public in each
lowest since 1918.
' has indicated this would be ar¬ instance. In some few cases, this
Passenger traffic in 1943 was by
9.
Average capacity of freight
is a Federal function, but in most
far the greatest for any year in
ranged when the schedule for
railroad history. It amounted to cars was 50.8 tons at the end of general witnesses is prepared. No I it is a function of State or local
1
governments."
indication of the time was made.
85,000,000,000 passenger - miles. 1943, the highest on record.
10. Tractive power of steam lo¬
Declaring that in its judgment
This was an increase of 58% above
Described as arbitrarily placing
comotives averaged 52,548 pounds
under one office full control over the bill "would create a vast pa¬
1942, twice what it was in 1918,
at the end of 1943, the highest
and nearly four times what it was
the nation's productive capacity,' tronage agency," the Association
in 1939, The heavy movement of ever recorded and an increase of the Association /statement points adds: "It would put into t,he hands
Phone
,
Tybor Stores
Denver & R. G. Pfd.
Seaboard Air Line
compared with 20 years ago.
The increase in freight traffic
out that while the bill is
of the Administrator the authority
advanced
"although the
ments, more than ten million men
Government already has full pow¬
having been moved in special roads in the face of an increase ers in respect to war," it proposes
trains and special cars. This does of less than 1% in the number of to give a Government agency sov¬
not include the millions of sol¬ freight cars and an increase of
ereign jurisdiction over the realm
diers, sailors* and marines on fur¬ only 1.4% in the number of loco¬ of science. An initial $200,000,000
motives owned. There was no ap¬
lough who traveled during the
appropriaiton would be author¬
year, nor does it include small preciable change in the number ized, with further sums to be cre¬
of passenger cars owned.
ated as necessary, according to the
groups of individuals moving on
Railroads in
the first eleven
order, nor Navy and Marine Corps
statement, which said:
months of 1943 installed in serv¬
movements, nor prisoners of war.
"The bill would appear to be
On the basis of the present out¬ ice 26,433 new freight cars and based on the false premise that
656 new locomotives. They had on
look, freight traffic in 1944 is ex¬
private
industry
impeded our
order
on
Dec.
1,
1943, 36,253
pected to increase between 2%
preparation for war through fail¬
and 5%. An increase of between freight cars and 1,004 locomotives.
ing to coordinate scientific infor¬
10% and 20% in passenger traffic In order to take care of increased mation, and failing to utilize sci¬
traffic and replace worn-out
is anticipated.
entific resources in relation to the
Outstanding operating records equipment, they are expected to national need. It would appear to
need between 40,000 and 50,000
established
by the railroads in
overlook entirely the fact that
new freight cars and about 1,200
1943 follow:
American enterprise has helped to
locomotives by next October.
1. Average load of freight per
develop in this country'a techno¬
train was 1,116 tons, the highest
logical civilization that is unsur¬
on record.
In 1942, it was 1,035
passed in the world,
/ v.,
"To attempt to 'mobilize' science
tons.
-.'.J ■
and technology by putting it all
2. Performance
per
freight
in one 'office' is simply another
train more than doubled in 20
way of arbitrarily placing under
years, gross ton-miles per freight
Deiafield & Delafied, 14 Wall that one office full direction over
train hour having increased from
the productive capacity of the na¬
16,764, in 1923, to 36,079 in 1943, Street, New. York City, announce
tion. This office would have con¬
while net ton-miles per freight that Carroll
Coleman, Thomas F.
train hour increased from 7,770 in
trol of and responsibility for all
Lennon, Leslie H. Thompson and
1923 to
the
management and operating
17/,022 in 1943.
Theodore P. Tsolainos will be ad¬
personnel with 'an aggregate of
3. The average load per car of
carload freight was 41 tons in 1943 mitted to general partnership in six months training or employ¬
ment in any scientific or tech¬
the firm on Jan. 1, 1944.
compared with 40.1 tons in 1942.
as
a
war
measure,
haiidled this year by the rail-
-
...
hDeiafield
Delafiefd
5.
Average haul of freight was
Admission
of
these
the "Financial
part¬
new
in
reported
previously
was
nical vocation.'
Chronicle" of Dec.
30th.
"It
is
;v
arrant
nonsense,
un¬
matched by any totalitarian Gov¬
ernment, to apply any such defi¬
nition
as
the test for the classi¬
fication of persons to be put under
the
index
of
Page
and
Bank
Insurance
Stocks......, ,2639
Calendar of New Security
Flotations. 2659
2641
Canadian Securities.
HAY, FALES & CO.
Me?nbers Neio York Stock Exchange
Investment Trusts
..............—2643
Our
71
Broadway N. Y. BOwling Green 9-7027
..2653
Municipal News and Notes...
Reporter on Governments..
Our
Broker-Dealer Personnel Items,.,
Bell
Teletype NY 1-61
Public
Utility
Railroad
I
Real
..2658
Securities.............2634
Securities.,
Estate
2653
.
.2633
Securities.. ............2635
2652
Security Salesman's Corner....
Tomorrow's
Says
Bought
Sold
—
—
(Old)
(Old)
Quoted
one
Administrator
Markets—Walter Whyte
:
2636
from
when
principal
intervene
six 'executive assist¬
$10,000 each per
except
for
be paid
to
their compensation.
The bill lays no obligation upon
the Administrator to report on the
use of the funds of the Office of
fix
to
year,
applicable
to
for the
the
in
all.
the
Government
practical
zation; but it does obligate all per¬
sons, under penalty of $5,000'fine'
or one year in jail or both, to fur¬
nish the Administrator upon his
request information, data and rec¬
ords
concerning
scientific
and
technical facilities during the war
and concerning
personnel at all times.
deplore the exploitation of
the war which is implicit in the
"We
of
introduction
to
pro¬
"People who wish to hold them¬
many
and
examination
certain
priate
skilled
technologists
in
subject
to
and licensing, and to
categories
are
other controls,
by appro¬
Governmental authorities,
the electrician, en-
The plumber,
bill
the
at
this
and
reject its false premises
We
time.
its
denounce
pose
to
socialize,
scientific
concealed
pur¬
collectivize,
or
research,' development
and technical service."
.
The Association's Committee on
Protection
which
of
Industrial
Property
compiled the statement is
of Edward S. Rogers,
Sterling Drug,
Inc.;
John P. Bartlett, Bartlett,' Eyre,
Keel.& Weymouth; Eberhard Facomposed
Chairman,
ber; R. B. Fiske, American Cyanamid
Co.;
Frank
A.
Howard,
Standard
Oil
Development Co.;
John
C.
Cooper,
Kerr,
Dunham;
Lawrence
,
Kerr
&
Dealers Ass'n
Y, Security
Street, New York 5
Pine
30
Tel. WHitehall 4-7970 Tele. NY 1-2218
Investment Possibilities
In Auto Accessories
A
survey
investment
outlining the present
possibilities in the au¬
tomobile accessories field was is¬
yesterday by Ward, Gruver
sued
&
Co., 40 Exchange Place,
York City, members of the
York Stock Exchange and
ciate members of the New
New
New
asso¬
York
Curb
Exchange.
The survey, based upon a study
of the common stocks of 10 lead¬
manufacturers,
accessories
ing
shows
record
a
earnings
satisfactory
of
and dividend payments
1935.
since
For
have
yields
the
1943,
ranged from 4.5% for the Stew¬
art-Warner Corporation to 8.1%
for
the
Spicer
Manufacturing
Corporation.
Other
companies
their
common
to- j
yields
1943
the
with
ge.ther
;
studied,
stocks, are:
of
Borg-
Corporation, 4.6%; Briggs
Manufacturing
Company,
7.4%;
Warner
Corporation,
Stratton
Briggs^
7.7%; Eaton Manufacturing Com¬
pany,
7.3%; Electric Auto-Lite
Company, 5.2%; Houdaille-Hershey
"B," 7.7%; Motor Wheel
Corporation, 5.6%, and NoblittSparks Industries, 6.2%.
These
companies,
which
at
present
are
almost exclusively
engaged in essential war work,
can look forward to an extremely
replacement demand for
products after
heavy
their
the
peace-time
'
war.
Langner,
Langner, Parry, Card & Langner;
B.
L.
MacChesney,
Machines
T.
Nims,
D.
Taylor; G. H. Reid, Gen¬
R. H. Macy
White
'
•'
-
•
■
.
-
•
■
available
•
upon
& Co., Inc., and Wil¬
White, William Wal¬
&
Scotti.
Neal
Dow
President
of
Intertype
Corp., is the Association's Presi¬
dent.
|j:
request
Hill, Thompson & Co., Inc.
Markets
Becker,
6s, 1948
First Mortgage
Memorandum
Co.; Patrick L. Ryan,
liam Wallace
lace
Tin Plate
Lino¬
Nims,
Harry
Verdi & Martin; Louis H. Porter,
Porter &
Empire Sheet &
International
Corp.; Joseph
Mergenthaler
Mackey,
type Co.;
eral Electric
scientists
scientific and tech¬
nical
ductive activities of its citizens.
selves out to the public as
Mobili¬
Technical
and
Scientific
there is any general
as
American concept is that it is not
desirable
exempt
ants
Business
"Insofar
L. D. SHERMAN & CO.
Members N.
■
its personnel
civil
service requirements
he deemed it necessary and,
to
number
Office of the Government.
.2637
Reporter's Report,.,;.....
...
of
control
one
to recruit a staff without limit in
,
Admit Four Partners
ners
N. Y. New Haven
(Old)
.
34%
was
Average daily movement of
1-1779
y.
Teletype n.
4-4832
Average
,
4.
DIgby
much greater
■
freight cars was 51.2 miles in 1943
compared with 48.8 miles in 1942,
Ass'n
Dealers
Security
Y.
N.
Exchange PI., N. Y. 5, N. Y.
40
sengers per car
7.
passengers in 1943 can be attrib¬
uted in part to Army troop move¬
1-1397
BIDS MAPE ON BONDS WITH
And Passenger Traffic Handled
By Railroads In Year 1943
Record freight
a
Y.
N.
Teletype
-
Stock)
(1 Share of Preferred and 2 Shares of Common
in
HAnover 2-8780
V
Unit
Y./'% $5.00 Per
—
Ass'n
y. Security Dealers
Members N.
OFFERING PRICE
New York 4, N. Y.
50 Broad Street
and Situations for
1?0 Broadway, New
Tel. REctor 2-2020
Dealers
York 5
Tele. NY. 1-2660
@FedFRASER