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DEC 1
FinalEdition
Volume 162
InvestmentBankersAssocrationConventiori Issue
New
Number 4444
Collectivism
7
;|,V--,:■■■•
:..y \
York, N. Y. Thursday, December 6, 1945
Governor; Bricker Scores the, Collectivist Trend, Which Is Being: Far;l
by 'The Professional Intellectuals/' He Contrasts Present
"Word .Twisters'', With Thinkers Like Jefferson and Franklin, Who
Were Community Workers, and With Their"Earthiness"Made Up; for
7at Lack of Sparkle- and Volume; of Words. - States That Increasing^ the
Power of; the Government Machine,* Although Done Under the Liberal
Label,,/Actually , Constitutes' the Historic infringement on Liberalism:
He Warns Against "Stern Equality- in America as Leading to "MereInertia, Torpor and Death."
~
w, ,
thered
.
I
benefits' haW; come
We are a forward, looking: nation, arid great
world from this fact.
to our land and to the
Charles1 S. Garland Is Elected President
..
^
York--Vice-Presidents.
•
#riiittee
ports,
greatness' has
Production Means
Plus
well
the
for
ideals
in a
which
is the marvel
there
Not Take
signs
are
land that
we
are
John
now
W,
Bricker
being urged to
think
and
hands
differently about ourselves
destiny. Sometimes it
as though
we are in the
of
professional: intel¬
the
Much From Gross Income
By the professional intellectuals I mean the able men, and
lectuals.
*An
address
by:
made
business connection
*
Address
by
than
Mr.
running
"A" & Ordinary
(Continued
on page
Let's Finish Ours
Successors to
lilienthal & co.
Chicago
;7
2785)
Established
1927
York4,N. Y.
.
1-3t0
London
Geneva- {Representative)
.
Evans, Commerce Trust Co., Kan¬
sas
City.
;;;y;;B'oNU:yy
..
on
State and
2792
!
634 SO. SPRING ST
WALL STREET
46
LOS ANGELES 14
NEW YORK 5
Corporate
Common
v
second ary'v
.
York 5, N.Y.
TELEPHONE-RECTOR 4-6300
Tel.
-
New York 5
Philadelphia Telephone
Members New
York Curb Exchange
30 Broad St.
Tel. DIgby 4-7800
NATIONAL BANK
New York 4
OF
90c Conv.
THE
CITY OF NEW YORK
Tele. NY 1-733
Scranton
Preferred'
Spring
Brook Water Co.
Company
Preferred
.
$6 Preferred
;•
'
Dealt in on N. Y. Curb Exchange
Prospectus
on
request
HART SMITH & CO.
Reynolds & Co.
New
52
.
.
Bell
York
WILLIAM
120 Broadway, New York 5, N. Y.
Telephone:
ira haupt & co.
"
Members of Principal
Members
Members New York Stock Exchange
Teletype N. Y. 1-576
Enterprise 6015
THE CHASE
$2.40 Conv. Preferred
-
.
York Stock Exchange
*
Nv Y. Security Dealers Ass'n
REcfcor 2-3600
.
Raytheon Manufacturing Co.
INCORPORATED
45 Nassau Street
;
Preferred
Solar Aircraft
-
Kobbe, Gearhart & Go*
Members
Bond Department
and Dealers
Alloys, Inc.
Conv.
60c Conv.
'; 7
-
EXCHANGE
Bonds
Aireon Manufacturing Corp.
■;y-markets.
C9
&
Brokerage
^Members New
HUGH W. LONG and COMPANY
.
yy finance;;:';;"::';
BROKERS
'
Group:
W. E. Knicker(Continued on page 2783)
Texas
Hardy & Co.
'
...
Acme Aluminum
MEMBERS NEW YORK STOCK
Nash¬
for Banks, Brokers
DEALER$>■ ~
AUTHORIZED
PHILADELPHIA
Troy
Albany • ' Buffalo
Syracuse
Pittsburgh
Dallas
Wilkes Barre
Baltimore
Springfield
Woonsocket
1
BULL., HOL.DEN &
Co.,
77:':--"*7-
-
Southwestern Group: Harold C.
^
FROM
V!.V'"'"v.';-oir from
64 Wall Street, New York 5
BOSTON
Bond
-
„
14 wall ST.. New
ville.
;;;;;
V •'■■■
BE
MAY
OBTAINED
\:
SECURITIES
I INVESTMENT
;:
Teletype NY
C'evlanfi
Securities
Nashville,
Group:
G.
James
Caldwell,
Caldwell-Phillips
&
Co., St. Paul.
Regular Features Index
PROSPECTUS
;
.
;
Dunn, Auchincloss, Parker & Redpath, Washington, D. C.
Southern Group:; Albert S. Hill,
Minnesota
INVESTORS ■ INC-
R. H. Johnson & Co.
Stock Exchange
and other Exchanges
HAnoverJj-OGOO
S.^ Garland
Detroit.
Mosher
the
ihll FUNDAMENTAL
-
Buy Victory Bonds
25 Broad St., New
Charles
Municipal
They Finished Their Job
Hirsch & Co.
Members New York
Ira
)!;;,
! i
Rocky Mountain Group: Paul E,
Youmans, Sullivan & Vo.
:
Southeastern Group: Richard P.
Shares
/
hirsch,
Angeles,
5 Central States Group: Carl J.
Easterberg, Riter & Co., Chicago.
:
Eastern
Pennsylvania Group;
Sydney P. Clark, E. W. Clark &
Co., Philadelphia.
Michigan Group; Fred A. Bargmann,
Braun, Bosworth & Co.,
before the Golden Anniversary Congress of American
Association of Manufacturers, New York City, Dec. 5, 1945.
•
Aerovox Corp.
■■
On
Northwestv Group: LeV
Bice, Paine-Rice & Co.,
Spokane.
e,
Co.,
Group; H. \N. Bawden, The Dominiori Securities Corp., Ltd.,. To¬
ronto.
; K
Mosher
Industry of the National
Gaumont British
business.
a
Jorin C. Max¬
Pacific
-
land F.
j. Canadian
to accept the presidency of
Inc.,
lumbus.
■
Don¬
&
Burr,
well, Tucker,,Anthony & Co.
;' NortheM Ohio" Group:: Einile J.
Legros,
First Cleveland
Cleveland, Ohio.
; ;
Ohio Valley Group: Ewing T.
Boles, v The. Ohio Company, Co¬
Califorriia
Roy c
&
■
] | New York Group:
Re¬
are:
' r■
\ New England Group: Albert'T.
Armitage, > Coffin
the annual
Los
being your president is more strenuous in
ways
at
Blyth
I thought I was retiring to a less active life,
but I learned differently, mighty fast. I know now that
-the
Taussig, Taussig, * Day &
Boston.
gional Groups
office
taking
ald
principal
> my
■s■
Chairmen *
of
J.
Co., St. Itouis.
confer-;
will be.
Group:
NAM."
many
■"
to Pre¬
Sound Money and Credit System.
I resigned from
;
j Mississippi VaUey Group: Gar-»
field
ip this ;
issue, starting
on page 2721.
:
Ap¬
proves President Truman's Labor Recommendations
and Urges That Business Men Be Better and Bigger
and Make Their Objectives Primarily in the Public's
f v-v 77;7.y ;7:y
a
One year ago
Mr.
Bricker
before ; The
Economic
Club of New York, Nov. 29. 1945.
Continued on page 2771
-■
as
;
a
those
meeting
Adequate Return to. Investors. ; Sees Need of
Eliminating Snch Special Privileges as Tariffs and
Preferences Given to Labor, and Calls for Restora¬
tion of
our
seems
so
e
nee,
I
vent
throughout
our
: 7y V
(1) a Tax System Which Makes Accumulation of
Savings Possible; (2) a Tax Policy Which Will
of the world. *"
-
;
a Free and Increasing Flow of Capital Into Enter¬
prise Is the Panacea for Full Employment and Prosperity,1 Mr. Mosher
Lays Down as Essentials for Increased investment:
?•
manner
But
By IRA MOSHER*
National Association of Manufacturers
Asserting That Only
o ur,
ideas and our
\.
President,;
p
future and to
execute
*
<
7'"'
'
re¬
also
of
h
and
'
'
.
who" attended
think and tact
Idly
1
,
,
ingness, and
opr ability, to
.%
?
Among"the- principal speakers were John'W. Snyder/ Director of Reconversion,
arid the; Hon- Leyerett Saltonstall, U. S. Senator from Massachusetts. 7
'
:
Tn.i ti
texts of the formal addresses rii a<de * at the meeting and of most of the Com-;
list
bo
Chica^o>
First Formal Convention Since War
at
»^
spring of our■
been our will¬
Copy
a
.The. 34th Annual Meeting of the Investment Bankers Association !was held in
Chicago at the Edgewater Beach Hotel from Nov. 25 to Nov. 28.
;'
; - Officers:inducted at the meeting Were: Charles S. Garland, Alex. Brown & Sons,
Baltimore, * President, who; succeeded John C. Folger, Folger, Noldri & Co.,7 Washington,
B.* e.; Hazeri Sv Arnold; Brauri, Bosworth & Cck, Toledo; Julieri H. Collins, Julieri Col¬
lins & Co., Chicago;: Hal H. Dewar, Dewar R obertson & PariCoast, San Antonio;. Edward
Hopkinson; ~ Jr;,' Drexel & Co., Philadelphia; and. Lee M. •Limbert, Blyth
Co., Inc.; New
yy
TKe-main¬
;
Price 60 Cents
Holds 34tR Annual Meetiilg in
;--v; By JOHN;w. BRICKER*
::yyy y/y :Uy
-Former'';Governor of Ohioy77v>y.y-7v y.'y?*
■TY-'-'Z/7;;
—Section"1
Inye$tiiieiM Bankets Asso^
the
on
I n 2 Sect ions
;
Security
Dealers
ST., N. Y. 5
Bell Teletype NY
111' Broadway"
Assn,
;
HAnover 2-098
1-395
10 Post Office Sq.
Boston 9
REcton 2-3100
Hancock 3730
.
Tele. NY 1-1920
REctor 2-8600
New York
Teletype NY 1-635
Exchanges
New York 6'
-
Montreal
Toronto
.
i
Direct
Private Wire to
Boston
2698
THE COMMERCIAL & FINANCIAL CHRONICLE
.
Thursday, December 6, 1945
T-
Trading Marketn in:
•V,-*"
Frisco, Old Pfd. & Com.
,
P. R. MALLORY
United Drill & Tool
A.
U. S.
B.
&
,
Sugar, Com.
After Calling Attention to the Record of Public Utilities Investments,
Entire Absence of Reconversion Expense,
Mr. Young,
Lear, Inc.
( CO., INC.
^
^ Bv HAROLD II.
American Phenolic
Bought
;
Points Out That Because of the Almost
KING & KING
Established 1920
Members
'
New York
"
.••
1
Security Dealers Ass'n
,
Securities Dealers, Inc.
HA 2-2772
NTat'l Ass'n of
40 Exchange
PI., TSt.Y. 5
BELL TELETYPE NY
1-423
Expanding Domestic Use of Electricity and Gas artd the Relief From Excess Profits
Taxes, the Immediate Future Outlook for Utility Securities Is Promising.
Sees Op¬
portunities in Shares of Operating Companies, Formerly Held by Holding Corpora¬
on the Market and Contends That Shares of Some
Holding Concerns Offer Speculative Possibilities as a Call on Their Underlying Com¬
tions, Which Are Now Being Placed
Shares in
pany
the various types of^
ln-f
businesses competing for the inm*?:..'
vestor's funds, the public utility
companies have established
an
enviable, rec- ^4i444,'":
4 4
ord.
There 4
Among
Kingan
um
'«■
are
few
very
,
'4
the
year
iltCll
v
r
HAnover 2-0700
' '
1-1227
Teletype N. Y.
Bell
The
electricity has
Lists
pressive gains
in
trial,
4; Buy
cial
and
commer¬
and
do¬
mestic
;
4.
;
i n
country in
York
New
Members
31 Nassau
Curb
Street, New York 5
Telephone COrtlandt 7-4070
output in
1944
was
Bell System Teletype NY 1-1548
Bankers & Shfopers
Capital
T"
Ins.
of
1914. * As
the
Investment Bankers
A. S.
'
&
Common
■V"," *
Common
field
of
and
en¬
Cola
1
This
;
subject
my
Light
of
Members
York Stock Exchange
New York Curb Exchange
New
120
j
REctor
an
years, in
receiving a reasonable return on
his capital,; and, as opportunities
may
arise,
in, increasing; his
4
fundamental principles first
which
Boston & Maine R.R.
Stamped Preferreds
We Maintain Active Markets in U. S. FUNDS for.
;
Kaiser-Frazer
New
BULOLO GOLD DREDGING
on<i
Bell
the
eliminates
the
risk
of
Security Dealers Assn.
Members N. Y. Stock Exchange
St., N. Y. 5 ^Hanover 2-4850
Teletypes—NY 1-1126 & 1127
115 BROADWAY
Telephone
failure
requirements.
Portfolio
management
demands
the
same
aproach even though
the
possibilities
of
error
are
greater and therefore the risks of
failure to accomplish" a certain
meet
specified
purpose .are higher.
< This
approach does
a
timid
,
policy
On the
con¬
aggressive policy
justified, and a protective
follow
when
NEW
'
believe,
;
0
YORK
HAnover 2-9470
companies
cement
will
r
444444;4 WE SUGGEST
444444
Oregon Portland Cement
Consolidated Cement
Riverside ' Cement,4 •'
results
in
rapidly
bring
Teletype NY 1-672
.
444;
Spokane Portland Cement
■
Circulars
-
•
Available
,
LERNER & CO.
Inactive.
10
i
POST
Tel. HUB
Securities
OFFICE
BOSTON
9,
4v'%
SQUARE"
*
MASS.
1990
Teletype BS 69
Haytian Corp.
Eastern Sugar Associates
Punta Alegre
Sugar
an
changing world. A policy which
is
too
aggressive invites taking
NEW YORK 6, N. Y.
;
We
imply
not
investment
and Other Principal Exchange*
v
ST.
voperale at capacity for several years. -
t
{
BArclay 7-0100
WALL
Teletype NY 1-1140
to
policy when needed.
An invest¬
ment policy that is too timid in¬
vites ■ stagnation
and
atrophy
which over a period of time may
,
r
Goodbody & Co.
37 Wall
64
trary, to fulfill the responsibility
to owners of funds it is necessary
NORANDA MINES
,
Securities Dep't.
Canadian
Members N. Y.
and to plan beforehand
designing and construction of
bridge to be used for certain
specific purposes.
A margin of
safety can be allowed for.1 that
the
to
United Artists Theaters
Members New York Curb Exchange
v
a
should be followed.
STEEP ROCK IRON MINES
Preferreds
Common. & Preferred
termine
that
KERR ADDISON MINES
England Public Service
(Va.)
v.'''*
Frank C. Masterson & Co.
mana¬
proach is essential for success. In
engineering it is possible to de¬
,
Missouri State Lite Insurance
\
•.
vestment
maintaining principal, in
4 I Would like to discuss certain
2-7815
-
Fred F. French Investing
element of risk.
In¬
management is not an
exact science, yet a scientific ap¬
Ragnar D. Naess
It deals with the problem of
lor.
■
uring; the
invest¬
gapital.
BROADWAY, NEW YORK
Tel.
investment
Yupdaiiieiitai Principles of Port folio Management
a4'4;:4
4: The most fundamental principle
is. -that of; recognizing and meas¬
meeting <the requirements of the
average/individual who does riot
want to speculate or trade ; but
Who is interested, over a period of
Bought—Sold—Quoted
Teletype NY 1-1843
that
Stock .'
Common
:
4 V::;4"*4
own
WHitehali 4-812 0
Central States Efec.
day of
ment counsel¬
mc Donnell & To.
Telephone: WHitehall 3-1223
ideas
;■?'»
neverthe¬
.
Stock
,20 Pine Street, New York 5
York Curb Exchange
Bell! System Teletype NY. 1*1919[
their business life even if
they'appear to be obvious,
article
deals with the
as
.444 Common 4444444 44
<
York Stock Exchange
Members New
65 Broad way
put on paper the thoughts
gers ;have to struggle with every
4
point of view
Power &
fl. G. BRUNS & CO.
Bell
less to
from
Stock
Panama Coca
almost
other
worthwhile
is
it
times
in
every
deavor. ;■
Delaware
Sugar
Members New
?
accomplish¬
is; well known and obvious. Some¬
m
management
Preferred
Caribbean
V
.
jective in this
mana¬
many
portfolio
Campbell
Common
Trend.
ob¬
as
Asso¬
Stock
Common
Edward A. Pureed & Co.
,
ways 4 of 4 ac¬
complishing a
use
ciation,
Denver,
Colo.
Dec.
4,
1945, Mr. Young is Public Utilities
Analvst with Eastman, Dillon &
Co., New York City;
\ ;
(Continued on page 2763) v£;
Byrndun Corporation
-
Fundamental Upward Price
I believe are basic in
There
ger,
are
by Mr. Young be¬
Rocky Mountain Group
the
the
„
"Blue Chips." He Prophe-
ing these objectives. Secondly, I
would like to suggest certain gen¬
eral applications of these princi¬
ples; and finally I will apply these
principles
to
today's
situation.
Perhaps much:of what I will say
ment
more
*An address
fore
.
Textron Warrants
used
desired
Exchange
>
Elec., Com.
Pressurelube
•
H. Young
Harold
Vanderhoef & Robinson
'
branch offices
Greater. N. Y. Industries '•
management of portfolios depends, upon requirements and
of individuals and upon the particular approach or
by the invest -
than five times that generated in
1920 and more than eleven times
the
Present
as
15% of Preferreds "With Some Price Risk."
methods
generated
this
Well
as
circumstances
electricity 4
BONDS
our
Haile^Mlnes
.
4: 4
for the Conserva¬
Suggested Portfolio, Composed 50% of Common Stocks, 25%
of "Relatively Stable" Preferred Stocks,
a
The
fields.
The amount of
VICTORY
,
Loft Candy
of Government Bonds, 10%
indus¬
the
of the
Continuation
sies
im¬
shown
NY 1-1557
; V
La.-Birmingham, Ala.
South Shore Oil
*
-
Capital and Income.
cluding Young Growth Companies
of
use
'.
Exchange
'
»
Urges .Maintenance of a Balanced Port¬
folio Over the Long-Term to Give Flexibility, to Meet Changing Condi¬
tions and to Provide Insurance Against Emergencies.
Recommends
Moderate Diversification Among 20-30 Different Equity Securities, In¬
year-out
have shown.
WOrth 2-4230
Request;• 4
'
tion of
companies
120 Broadway, N.
on
Central States
Investment Counsellor Sets Forth Scientific Principles
growth which
the
utility
Stock Exchange
Y. 5
Members Baltimore
;.' '•
St., New York 4, N. Y.
New Orleans,
By RAGNAR D. NAESS
in
-
Quoted
*
:
■
—"
Members New York Stock
25 Broad
there has been
and
Analysis
Direct wires to
4
Management
In a Changing World
fields in which
Sold
Steiner, Rouse & Co.
^
"
mm.
Portfolio
Preferred
.
I
'
'
4
—
'
Holds Trust Funds and Institutional Invest¬
Break-Up Distribution.
a
Would Do Well to Place More Funds in Utilities.
ors
Common &
■
poor
a
Quotations Upon Request
FAItR
&
CO.
;
Members
■>'S
New
New
York Stock Exchange
York Coflee <£• Sugar
120 WALL
.
xxiuangs
ST., NEW YORK
TEL. HANOVER 2-9612
(Continued on page 2739)
Curb and Unlisted
Segal Lock & Hardware
Preferred
Securities
(
A
ROCKWELL
I
Wellman
v
R
MANUFACTURING
L
Engineering Co.*
Common
MICHAEL
HEANEY, Mgr.
WALTER KANE, Asst. Mgr.
Members New
York Curb
Exchange
'
Chicago Stock Exchange
39
Broadway
Disby 4-3122
New York 6
Teletype NY 1-1610
N
E
y
Simons, Unburn & Co.
Members New York Stock
Exchange
St., New York 4, N, Y.
HAnover 2-0600
Common Stock
BOUGHT—SOLD—QUOTED
Tele. NY 1-210
Troster,Currie s Summers
J G White 6 Company
MembersSecurity Dealers Ass'n
INCORPORATED
74
Trinity Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
Private
Wires to
Detroit
-
Buffalo
Pittsburgh
-
-
Cleveland
St. Louis
37
; •
WALL STREET
NEW YORK 5
ESTABLISHED 1890
Tel. HAnover
2-9300
Tele. NY 1-1815
Utilities
Corp.
Preferred
Common
&
BOUGHT—SOLD—QUOTED
Upon Request
Bought——Sold—Quoted
25 Broad
'
•
Kingan & Company, Com.
*Circular
Joseph McManus & Co.
I
:
.
American States
CORP.
'
tlcViei/
MEMBERS
One
Wall
NEW
YORK
Street,
STOCK EXCHANGE
New
York 6, N. Y.
Telephone BOwllng Green 9-4800
T*
(Volume^ 1C&
THE
Number 4444
COMME^CJAL & FINANCIAL CHRONICLE
A Gold Coin Standard forU. S.?
By WALTER E. SPAHR
..
7 f
^ /7'" 7 7'
.
and
;
professor of Economics, New York University
Secretary, Economists' National Committee on Monetary Policy
J
Dr. Spahr Points/Out as Two Bad Features of the Engle Bill to Resume
Coinage of Gold as (1) It Would Not;Provide a Gold-Coin Standard,
f but Would Instead 'Subject People to the Uncertainties of Repeated
Changes in the Monetary Unit;1 and (2) It Would Restore Bimetallism
£ WithrAlI Its Evils,
Holds Administration's Monetary Policy to Divorce
> Nation From a: Genuine Gold Standard Permits Other Countries to
:f Obtain Our/Gold While.Making It Criminal for OurOwn Citizens to
Hold iL, Decries "Scarcity of Gold" Argument as a Reason for Holdiog to a Paper Standard and Contends That" Under Present Monetary
System There Is ;No Check by People on the Public Purse or on Bad
Banking Practices.
;r
*
'
!
V
Free
.]'
:
,
2699
't
| '»
LlCHTtnSTflf
Enterprise
'
By HAROLD J. EASKI+
Chairman of the British Labor'
Party
THE LOST
"■'*
;•
>,,
and company
:
.
.
-
*
.
.
;V On NoV. 13, Representative Clair Engle (D.-Calif.) introduced
fa bill, H. R. 4669, and on Nov. 14,-Senator Barkley (D.-tfy.), on
■{
7-of:.7
•behalf
-7 S
t
e n a
o r :s
Murray
Montana
duced
permit coinage of
7:?:' a $50 gold piece, :
i::777
"2. It will provide for free
; O
circulation, of gold and the
;/
:v ■ convertibility of gold with
"I. It will
v
.
com*
currency.
of
return
ident to raise the price
States
to
gold abOVe the present $35
per ounce figure.V > i;
"4. It will permit persons ten-;
dering gold bullion to the
;;
mints to receive in return
a
t-k old-coin
standard.
J
The
'
therefor either coined gold
press
-apparently
misled
-was
of
: ;
as
of
because
issued
on
on
release
misleading
a
-
■
Nov. 13 by a SubcomMining and Minerals
Industry, Senate Special Commit¬
tee on Small Business. It read:
"A new bill designed to permit free circulation of gold will
:
fee
presented
States
Senate
to
United
the
(probably
soon
*
,
f
.
Tuesday, Nov. 13) by Senator
<Glen Taylor (Idaho), for himself and Senator James E. Mur¬
(Montana).
>:a7:.;\7 "Specifically, the bill provides
• -
depending
his wish."
upon
t
"
Bill
gold-coin
standard bill but, instead, a bill
which
provides,
fundamentally,
for two things: (1) a bimetallic
system, with ratios between gold
and silver to be determined by
Examination
bills
these
imittee
Or. Walter E. Spahr
currency,
or
■
nature
to' the
of
.'
•;*
United
the
\
.
"3. It -will authorize the Pres¬
the press as
providing for
the
Labor
Businessman" Ceased to Count."
Urges the Elimination of National
';;\\/ •
Sovereignty to End War.
I
bound to
am
begin by paying
the Engle
of
reveals that it is not
a
the President, and (2) the revival
of the power of the President to
the gold
devalue
rency
as
he
and silver
sees
fit.
The goldof gold
dollar value of an ounce
may
cur¬
not be less than $35
per
fine
Provision is made for the
ounce.
ray
(Continued
on page
2744)
WEEKEND!
Don't
end
worrying
stocks
'em
and
upl
livef
to
pay
'
^
world.
If
that
world
new
be
-
all
Europe have had
your
item
now
differences with this
in his policies, as
with Mr, Churchill
tory is an op¬
portunity and
prevent
not
added
*
Polaroid Corp.
j
J. GOLDWATER & Cff
.
Members New York Security Dealers Assn.
with Gen-:
or
39
New
our
noble
a
Sterling Balancesf.
*An address by Prof. Laski at
Dinner of the Nation Asso¬
by
that t supreme
frie nd
of
the
democracy and freedom, Frank¬
1945.
ciates,
lin Delano Roosevelt. We in Brit¬
York
New
City,
Dec.
AMERICAN BANTAM
(Continued
dustry by SEC, Which Uses NASD
by Holders of Sterling and Says Though Individual
Exporters May Gain, the Nation Will Lose. Esti¬
mates Blocked Sterling at £4 Billions.
:
LONDON; ENGLAND.—Once more the problem of Britain's external floating war indebted¬
ness has become the topic of discussion, as a re¬
sult of the affirmative answer given in the House
by the Chancellor of the Exchequer
question whether overseas holders of
sterling balances are in a position to withdraw
their funds in the form of purchasing and export¬
the
on page
2772)
,
i.
as
Usage. Additional Fetterf, Such as Recent NASP ByLaws, ContfolIing Profits and Commissions and Requiririg Registration of Salesmen, etc., Are Being Applied^
sterling balances are no longer
only in Britain but in
however, restrictions
limited
such
balances
tions.
to
any
on
is
an
Members
t
New York Security Dealers Assn.
t
HAnover
is no longer subject to
license, the balances have ceased
:;; ; (Continued on page 2777)
7;.7'7
of exports
of
some
legislative lobby.
Then
comes
TRADING
"
lor:
emergency."
77y,7''>,,
Ultimately the bill finds, its
.
comes
7;
-
to
out
a
law.
,
way
'
Kingan Co,
Bausch & Lomb
\
Billings & Spencer
EH. 1926
7V
into the hopper and
1
ion»
Members New York Security Dealers Assn. ;
;
,
J; The personnel which is set up as the enforcement agency
give "teeth" to the legislation usually has amongst its
170 Broadway +
Bell System
.
WOrth 2-0300
•
Teletype NY 1-&4
■
•
(Continued from page 2707)
-
s
-
Punta
,
We
are
interested in
offerings of
7
High Grade
*7
.
v
Alegre Sugar
i
Eastern Sugar Assoc.
Lea Fabrics
*
National Gas & Electric
Public Utility and Industrial
Susquehanna Mills
PREFERRED STOCKS
DUNNE & CO.
Spencer Trask & Co,
.■-77.7-
"
MARKETS
Haloid Corp.
a bill
containing numerous general recitals in
attempt to set up what is technically known as "an
an
25 Broad Street, New York
Telephone HAnover 2-4300
Blocks of
.
}
our
the for¬
.
-
Members Jiew York Security Dealers Assn.
25
;7 7':77^.
'
'
•
j
Sargent & Co.
v
-
2-4785
Bell System Teletype, NIT 1-2480
Private Wires to Chicago & Los Angeles
mulation of
MARKETING FACILITIES
Now that the greater part
{
40 Exch. PL, New York 5, N. Y;
:
interesting pattern that filches
First there is the
blocked. In theory,
Nationwide
r.
J.F.Reilly&Co.
freedoms.
'
of
!
Bought — Sold
Quoted
J*':'-'- ■ "
:
^Circular, on request
ties Continue to Fade.
country of the Sterling Area. In practice,
exports
the sterling
authorized transac¬
use
I
Tyranny, Free Enterprise Will Disappear and Our Liber¬
0 throughout the war their holders were at liberty
to use their money for purchases of goods, not
r
•
;
Pfd.'
^INTERNATT DETROLA
Its Handmaiden to
Annihilate Piecemeal Established Trade Custom and
ing British goods that are not subject to export
license. This means that the so-called "blocked"
Paul Einzig
&
3,
of Commons
to
Common
■"
:
There Is No Let Up of Restraints Upon the Securities In¬
It
Shortage of British Goods Due to Rush of Buying
«
Teletype NY 1-1203
chapter to the his-^
-
ling Balances by Members of the Sterling Bloc Will
Not Afford the Foreign Exchange Required by
Great Britain to Finance Imports. Sees Danger of
York6F N. Y.
un¬
derstood
By PAUL EINZIG
British Economist Holds Purchase of British Goods Against Their Ster¬
{
Broadway
HAnover 2-8970
and Unless We "Stick Ouir Necks Out" to Oppose This
The Blocked
"A"*
Gaumont-Brit. Pictures
Stalin. .That does not:
realization thai our
is measured by the
respect we pay them. They have
That at
was
in
|
United Piece Dye Works
that'
we
stature
own
fulfill¬
a
least
eralissimo
or
our differences
recognize that
military vic¬
ment.
1
'
#
United Artists
the outstand- .
as
American architect of what
may become, given the will on
our part, a better and a happier
built, I venture the prophesy that
no
name will be held in deeper
reverence than his. You may have
us
I
.
NEW YORK
Telephone WHitehall 4-6551
i
ing
victory in war
the prelude to
victory
in
peace;
For I
suspect that
of
}
WALL STREET,
99
|
We just drink
my
ain think of him
a
hom¬
about
Jbonds.
*
Obsolete Securities Dept.
.
,
apother week¬
those obsolete
through
go
homage to the great part that1
the: United -States- has played in the organization of
military victory;
I hope I may
age .to a great
isting rules governing the cir¬ nationV which
culation of 7 gold :■ aV;*. ■: >•'''/ ?
the
f; ■. 7f /: makes
$>anion bill, S. ;
1596, both in¬
terpreted in L
I
;
British
the
for: the following changes in ex¬
.
of>
and
.
a
of
Party Contends That Control
Of Scientific Materials or Processes By Private Interests "Would Be
to. Impose New Chains of Servitude
Upon Mankind.^ Says That a
Society Dominated by Free Enterprise Cannot Be Trusted to Keep the
Peace/ Alleging That Business Has Split Our Society in Two. He
Finds It Sigriificant That "OnIy in the New World of Russia Has ihe
deeper
Tay lor
of
Idaho, intro¬
'
Chairman
-
•'
"
Teletype NY 1-5
-
Members Now York Stock Exchange
Broad St., New
\
York 4, N. Y.
WHitehall 3-0272—-Teletype NY 1-956
'-V !
i
Private Wire to Boston
,
7"
UNLISTED
7 TITLE COMPANY
CERTIFICATES
Bond & Mtge. Guar. Co.
SECURITIES
& Trust Co.
N. Y. Title & Mtge. Co,
tfembfre
32
New
York
Security
Broadway
NEW YORK 4
Newburger, Loeb & Co.
It Members New York Stock Exchange
I
WHitehall 4-6330
Bell Teletype WT1-2033
Dealer?
^
Ass'u
Circular
on
Request'
Ancdyses available
'
to dealers
only
>■
Board of Trade Bldg.
CHICAGO 4
C. E.
Harrison 2075
Teletype CO 120
Direct Wire Service
New
5
'■
Bought—Sold—Quoted
STRAUSS BROS.
DIgby 4-8640
reletype NY 1-832. 834
140 Wall St.. N. Y
•:
•
National Radiator Co.
.
Prudence Co.
i.
Common and Preferred
stitutions and individual holders
Lawyers Mortgage Co;
Lawyers Title & Guar. Co.
Public National Bank
American Bantam
Inquiries invited from, dealers,
estates, corporations, banks, in¬
York—Chicago—St. Louis
Kansas City—Los Angeles
'V7
Established 1914
74
Trinity Place, New York 6, N. Y.
Telephone: BOwling Green 9-7400
Unterberg & Co.
Members N. Y. Security Dealers As^n
v
61
v
7 Teletype: NY 1-375
Broadway, New York 6, N. Y.
Telephone BOwling Green 9-3565
Teletype NY 1-1666
THE COMMERCIAL & FINANCIAL CHRONICLE
2700
■
■
*•
t
'
.
•' >'
V
•
■
Thursday, December 6, 194 5
»,
A.
:tXVA ':i"
7
4'
•t\
•;
fST, 1926
By HAROLD G. MOULTON*
President, Brookings Institution
,
"<
l
" ' ■*■*' '
^
''
'
-V
AAA '
•ir"
'
O
r
'Jv
;.
A
■'
' ''\
"
_
'
M.,*. .
A,
'V
f
'-'C ]' "7
■* ' '<
By. hon. henry a. Wallace *7' 7:77 Secretary of Commerce,; / ■
'7
-;7r£;'
7:
'
'*
•'7'7''11
,
■'
.
Asserting That We Possess the Plant Capacity, Labor Personnel, Fi¬
Mr. Wallace Expresses
^ Confidence in the Continuance; of Our Great
Experience Necessary Wartime Industry-Labor Record if We Maintain General Agreement as to
for Development, Dr. Moulton Contends That the Present Economic Our Objective, a" Well-Defined Method of Working Toward
It, and
Conflict and Confusion Retarding Advancement Are Government Con.r Willing Cooperation by All Classes. His Department of Commerce Will
trols and the Labor-Price Equation. Warns Higher Wagef,. With Goods Help Business by. Providing (1) Revitalized Foreign Trade Promotion
INDUSTRIALS
Shortage under Fixed Prices Will Intensify Inflation Pressure, and That Services; (2) Management, Technological, and Marketing Aids;
Wartime Industrial Profits Cannot be Used as Measure of. Ability to (3) Strengthening of the Department's Technical Bureaus; and (4) Fur¬
Air Cargo
Pay Higher Wages. Maintains OPA Control Has Become Profit Control nishing Government and Business With Statistics and a Complete
American Bantam Car ! and Unless Prices Can Be Adjusted to Wages, the Cost-Price Equation Analytical Program. Declares That the Salvation of American
Industry
& PM. v.v..w-ir. I
Breaks Down. Calls for Policy of Realism in Respect to Wages and and Free Enterprise .Lies in Technological Improvement, Greater Pro¬
7"7"
7 \ Z t
Amer. Window Glass* , Sees Ground for Future Prosperity.
duction, Expanded Consumption, and Increased Profits Based on High
Com. & Ptd.
I
Volume Rather Than High Prices.
After Stating That the Danger of
The immediate business situation is, of course, best characterized
as one of conflict and confusion. L The conflict is manifested in the
Inflation Dominates the Picture, He Supports President Truman's Policy,
Blair & Co.
: |
relations beWhich He Interprets as Follows: "The Way to Prevent Inflation Is to
the people—is enormously better
tween
labor
S. F. Bowser
Hold the Line on Prices. ' And the Way to Prevent Deflation Is to Main¬
than most observers had antici¬
and industry;
:
pated when the United States was tain the Volume of Purchasing Power in the Hands of the Consuming
the confusion
Cinecolor, Inc.
nancial Resources and Technical Knowledge and
-
Transportf
,
■
'
is
Dayton Malleable Iron*
Da Mont Lab. "A"
.■
minds
c
i
1
a
is
■
tion
a
be
said about
tors of
to
'
Natl. Vulcanized Fibret |
I; i
Oxford Paper
P. R. Mallory-
|
&
Pfd.-
come.
-
"
y
outlook
end
at the
■
of the
two
the
(-
due to
change is
(1) the re¬
principal factors:
during
enterprise
V:f r7 -! j
•1
the
war;
,
(Continued on page 2778)
Sylvania Industrial
(to date)
1945
A
:•
—
$.50 7
$2.25
7:
1944 $2.75 r
1943 $4.50
Approximate selling price—27
7
—
New Analysis on request
,
U. S. Truck Lines"
':
;
Now of
that
seemed
possible in the
of
way
look
then
at
s
t
in-
,
r
labor
o
of the American
record
good
as
was
tle -of
as
established
TEXTILES
74
v;•r
1914
'
•-
9f7400
A low priced
prospectus
| Textron Wrnts. & Pfd. j
*An address made by Mr. Wal¬
objective; a
of
before the
lace
working
society. 7 We
try, National Association of Man¬
ufacturers, New York City, Dec.
had
those
existence
three
5, 1945.
Our na¬
universal
was
agreement
had to win the war;
we
FRANKLIN
|
request
COUNTY
COMMON
circular
on
Kingan &
Co.,
Fuel
♦National
Com.
•
Pfd.
&
£
.
1.
Drop
'
and
i
Patent Oflice
S.
-
j
7
Forging
REctor 2-9570 to 9576
.
REctor
CO., Inc.
Bell
Established
N.
Y.
190ft
*"
Herbert
D.
Seibert,
2-4500—120
Editor and Publisher
?
[
:
Manager
7
.....
7
December 6
Published
every
V
twice
1945 <
week
a:
Thursday 7
: >
>
;
;
•
"
*
(general news and advertising issue)
Broadway
"
\ and
Y. 1-714
Monday
every
: v
(complete statistical issue—market quo¬
tation
BROADWAY, NEW YORK 6, N. Y.
-
William Dana Seibert, President
;
Security Dealers Assn.
System Teletype N.
•*< ;i,
j7
"
v
J.K.Riee.Jr.&Co.
-
,
'
Thursday,
COAL
;
..
25 Park Place, New York 8
r7 \
Corp.
Company
Publishers
s
''
Members N. Y* Security Dealers Ass'n
111
U.
William B. Dana
,
; i
Pfd.
Iron,
&
Prospectus on request
Members
I
7
2784)
William D. Rlggs, Business
*
request
F. H. ROLLER &
;
;
.
.
FINANCIAL CHRONICLE
Vulcanized Fibre
♦Moore
\
;
:
on page
COMMERCIAL
The
with
American Indus¬
/
,
£;77: (Continued
threatened.
was
3/ ♦Kaiser-Fraaer
speculation
on
Golden - Anniver¬
sary Congress of
goal, and willing co¬
operation by all elements in our
-
Teletype: NY 1-375
Refrigeration Equipment
UTILITIES
Iowa Southern UtiL
consumer—wants
• • -
K0LD-H0LD MANUFACTURING COMPANY
Manufacturer of Electric
very
worker, ' businessman,
our magnificent
—farmer,
.
Worsted
a
general
Standard Aircraft Prod.'
Consolidated Textile
I
things:
have
this
country,* as
ultimate objective Js
Everyone in America
our
as
that in the
me
do
we
;
•
.
unity, in
concerned.
be
*
to
toward that
Colorado
Aspinook Corp.
American Gas & Pow.
three
sense
solid
far
;
seems
Reg.
Trinity Place, New York 6, N. Y.
to
as
'
that
Alabama Mills*
I
can
it
broad
the stoutest apos¬
agreement as to the
well-defined method
There
7
Specialists in Soft Drink Stocks
'
Telephone: BOwling Green
United Piece Dye
Yet
free private
have
agree
wartime.
economy
enterprise
system dared predict it would be.
our
pur¬
experimentation, and for differ¬
ent types of action; certainly, we
do not want the regimentation and
controls
that; are necessary: in
y
and
Htirf A. Wallucu
pulling
g e t h er
-7777
achieved amazing results. The war
u s
unity of
same
must contain much more room for
e7.;7 that
s e
d
d
pro¬
we can
American
t
It is also perfectly obvious
goals, and when we
goals it is much
harder to agree, about the best
way to reach them. Furthermore,
the economy itself is and must be
very different in
peace, than in
war.. It must be more flexible. It
civ¬
actually
duced,
pose.
do
of the
and
ilian ug o o
we
is the
ment as to our
enormous
war
what
.
that such unity is hard to get. We
do not have such clear-cut agree¬
and
years ago,
£
7
is easy to say
need in time of
it
course
peace
pro¬
f ive
duction
things, during the war.
Hon Rose S TkosTER
\
New Jersey
What
tional
Warren Bros. "C"
.
£j
to find ways
had to be done.
remember
we
it; was not too
of doing what
agreement,
hard
*
'
;.
and
-
that
did
the
r y
-When
-war.-
we
~
.
-
Taca Airways*
t
u s
during
done under our form, of political
and economic organization when
PANAMA COCA - COLA
Quarterly dividend paid October 15,1945
MWM
DIVIDENDS:
Sheraton Inc. ;
v
d
That record shows what
H. H. Robertson
J
Anniversary Congress of Ameri¬
Industry with a strong word of praise for the great job which
min->:'v ■'
: --.V..- "• <S>——•—
* ~
—
output
•"Stabilityjgv'tt;:
markable achievement of private
Moulton be¬
Finance Con¬
American
profound
It is fitting to open this Golden
can
American
the
'
Polaroid Com.
^
|
This
of the masses of
ference, Nov. 28, 1945v
\
First," instead - of
sealing the
fate
of
private enterprise, -thjje
war period brought to the Amer>can people as a whole, and I be¬
lieve to the government, a new
realization of its vital importance.
'
address by Dr.
~
•
,'7fe^"Factors"
enterprise system
and the welfare
-
•
standpoint
the
from
of the business
fore
•
.
Harold C. Moulton
char¬
war—both
|
Com.
opinion?
which
"The
J
»
7
will have a bearing upon the post¬
war
situation for several years
Mohawk Rubber
,
a c
a more
general
acter
Michigan Chemical
a.
f
certain
Sessions*
& i
few
.
should
words
Kingan Co.f|f|
Moxie Co.
given place to extravagant expec¬
tation on the part of some and to
a
distinctly hopeful attitude on
the part of most observers.- What
are
the' factors
responsible for
this, remarkable change in public
situa¬
diate
Kaiser-Frazerf
Lamson
discuss¬
-
ing the imme¬
Hoover Co. f
V
equa¬
But be¬
tion.
Hartford-Empire Co.
impoverishment and increased
unemployment. By the end of the
war
these dire forebodings had
in
;
price
fore
wage-
Public
almost
certainly (1) seal the fate of pri¬
vate enterprise, (2) brings a vast
inflation of, prices, and- (3) result
issue
the
In
oLmany, participation in
second world war would
a
The*
s.
crucial
Douglas Shoe* | £
Gt. Amer. Industries* ;
.
the view
of
public off k
■
f
forced into the world conflict.
in
7 found
the
records,
clearings,
£
banking,
corporation, £
I
and city news, etc.)
state
.
-
|
Mass. Pr. & Lt. $2 Pfd. |
New Eng.
.
I
II
.
BArclay 7-0570
»
-
,
:
,
7
-
.
NY 1-1026
-
7 ' COM. & PFD.
Pub. Serv.
North'n New Eng. Co.
1
+Prospectus Upon Reqaost
|
WELLMAN ENGINEERING CO.
|
SHATTERPROOF GLASS
•Bulletin
or
Circular upon request
KENDALL COMPANY
I
Members N. Y. Security Dealers Assn
NY
ftfg
Wires to Chicago and Phlla
enterprise 'phones
Uartf'd 6111
Buff. 6024
'
-t
ruary
York,
.3,
j
'
& ELECTRONICS CORP.
'
41
Security Dealers Association
HARDY & HARDY
11 Broadway,
Broad Street,; New York 4
HAnriver
2-2100
Telephone WHitehall 3-4490
i j&'
as
La
Salle
State
C.;
St.,
0613);
Eng¬
.■;
second-class matter Feb¬
1942, at the post office at New
Y„ under the Act of March
7■
•
"\7
•
Subscriptions" in
■
i-ju-'
States and
in Dominion
of
.Canada,' $27.50 per year: South ai)d
Central
America,, Spain, Mexico,
and
Cuba,
$29:50
per: year;. GreatwBritain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
$26.00
United
per
year;
Other Publications
Bank and Quotation
J.
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Monthly Earnings' Record—Mth.. .$25 yr.
New York 4
Teletype
NOTE—On account of the fluctuations
in the rate of exchange, remittances- for
NY 1-960
foreign subscriptions and advertisements
•must
'
S.
.
-
Incorporated
York
25,
N.
1879."
iPossessions,
;
Members Hew
Bos. 2100
135
(Telephone:
Company
Reentered
KAISER-FRAZER CORP.
HYTRON RADIO
-
Copyright 1945 by William B. Dana
SPORT PRODUCTS INC.
Seligman,
Lubefkin & Co.
i
■
Direct
111.
1 Drapers' Gardens, LondonrE.
land, c/o Edwards & Smith-
.
.
PRODUCTIONS
Descriptive Circulars on request
Offices:
3,
\-v
THE FOUNDATION COMPANY
REctor 2-8700
.:,"V,•;'■£
SUPERIOR TOOL & DIE CO.
FASHION PARK, INC., Common
BROADWAY, NEW YORK S
,,
Chicago
.
WALT DISNEY
120
Other
AMERICAN BANTAM CAR
i
be
made
in New York
funds. ^
■
-aasw*
.;'u.i.
Volume
162
.
f v
:'••
•
-it.■'V'T
v iA:.r,r".-:*K'oyi Ku\v
<
r
Ciinningham Returns
!
By MELCHIOR PALYI*
Economist; Discusses Canada's Political and Economic Situation in the
Light of Post-War Conditions.
Sees a Better Labor Situation There
Than in the United States Where the Inflationary. Trend Is More Pro¬
nounced.
Looks for Long-Run Shifts in Canada's Foreign Trade. With
Declining Importance of Agricultural and Increasing Mineral and Manu¬
Sees No Bar in Imperial Preference to Close and Ex¬
panding Commerce^ With, U. S. and Concludes/That, Short of Cata¬
strophic Occurrences, Canada Should Remain the Leading Area Serving
as An Outlet for American Private and
Corporate Capital Seeking Sound
factured Exports.
Investment Abroad.:",i
fV^)£'v\»y///;'//•,y2?>v,
•'}
the
i-i—i
1'
labork situa¬
jj
.
try alone are 4^
put at 40 to. 50
look
out-
ing
o
following
1.
sur-
to
point out
r
h i g h-
rather
e w
than
offer
to
;
comprehen¬
sive:
Dr. Melchior Palyl
analysis.
The
is
Position
Labor's
.i.
labor
position
characterized
(in
war
in
benefit
Canada
by a wage level
as .much as 50%
plants)
below the American.
A difference
in the internal balance of
anyone
$12.24
for
$14.40
for
benefit
political
single
a
a
The
is
somewhere
is
and
person
with
person
.dependents;
more
receive
can
one
or
average
around
weekly $8,- an amount which is
just about sufficient to keep body
(Cooperative Commonwealth Fed¬
eration) which swept Saskatche¬
wan last year has been
crushingly
and soul
defeated
which has been bitterly criticized
tions
of
the
the
The
summer.
costing
as
millions
$200
provides only about $1 weekly
is very precarious, but their oppo¬
child.
nents, the Progressive Conserva¬
|
tives,
are
economic
another.
dle
similar
as
color
as
In other
classes
them
in
is
to
egg
control
of
Current
of
the
Government,
written / by
professorial
braintrusters in-Ottawa, embodies the
flower
of
Keynesian and New
economics.
line
;
makes
Net
reasonable
Working
Per
:
But in practice,
prevails, deter¬
a
Assets
such
second;
Are
?
the
/less
any
f
V,
opportunities
the
in
vestors
and
should; create
Andian National
-
Assoc. Tel. & Tel. $6
Brown
cau¬
attractive
7
for
immediate
(Continued
lesser
whose
tries,
check
for
growth
of
want
modern
capital
in¬
after
2747)
7
/
prewar
Electrolux
r
*
.
Hydro Elec. Securities Com.
Jack Waite Mining
Kirkland Lake Gold Mining
:
/fCLEVELAND, O. —Joseph M.
Cleveland
and
onva
Bank
been
with
is
Streifender;
in
Corp.,
•
First
the
City
National
Massey-Harris Co. Pfd./
Minnesota & Ontario Paper
He has recently
Building.
Co.
Nipissing Mines
Noranda Mines
serving in the armed forces.
Pend Oreille Mines
^
~
Rwy. -
Lumber
Hamilton Bridge Co.
>
"
(Special to The Financial Chronicle)'
years.'
productive methods
larger scale than in
•jj
coun¬
held
Company Com. & Pfd.
Canadian Western
With First Cleveland Corp.
America,
is
'
-
International Utilities
developed
South
as
Corp.
future
than
on page
;
& 7% Pfd.
Canadian Pacific
•
investment issue proposed.
every
modern
Africa, Australia and other
Premier Gold
Mining
Sun Life Assurance
.f
Direct Private Wire Service
per
coast-to
HART SMITH & COL
coast
-
52
WILLIAM
one-
Chicago
•
•
St Louis
•
Kansas City
>
Los Angeles
•
HAnorer %-Wm
ST, N. Y; 5
Bell
New York
New York
f
Montreal / Toronto
v:-v
STRAUSS BROS.
;
"
UNDER
/
/
ST.
*Dr.
Palyi visited Canada late¬
on behalf of Securities Counsel,
Incorporated, Jackson,: Mich.
Bo. 0-4133
Bell
4
Petroleum Heat
Harrison v2075
CG
Teletype
129
-
Baum, Bernheimer Co.
LOUIS
;
KANSAS CITY
Pledger & Company, Inc.
••';•
">r—
LOS ANGELES
New Orleans, La.:
41 Broad St.
ly
CHICAGO
U0.
Company
Orleans Stock Exchange
New York:
Board of Trade Bldg.
v
,
& Power
White &
.
/
$10
T. J. FEIBLEMAN & CO.
sta-
•"ft/
/:
VJ>
';.//'.v-/.
1945
EARNINGS—75c.
PRICED
Broadway
DIgby 4-864QI;
Teletype NY 1-832-834./,
L/_/$7.00
PAID—SOe
1944
32.
-
rCvNEW YORK
370,oop;
share
"? ?>;*.
v
->i_$2;04S^Oa.
"
"
—
:•
•
-
Carondrlet
Bldff. *•
/'"?
Tel.—NY-1-40S ""•
Polaroid
'
.
RED ROCK BOTTLERS, INC.
SEVEN-UP OF TEXAS
Queens Borough Gas & Elec. Co.
MISSION DRY
/
6% Cum. Pfd. ($100 Par)
f
-
Bought
-
Active
—
Sold— Quoted
"■..
on
Request
'•••
■
New York Hanseatic
120
Telephone:
74
Corporation
~
BROADWAY, NEW YORK 5, NEW YORK
BArclay 7-5660
Teletype:
*
ESTABLISHED
'-.>i
Specialists in Soft Drink Stocks
//.
t
i
i
ANALYSIS
(■'
ON
Preferred
&
'/ Eastern
i;;
&ks
Service 4s
Minnesota jPr.
Los
Angeles and New
1948
Common
Consols
.
American Cyanamid Preferred-
/
•
Banigan & Co.
CHAS.
!
I
H.
to
JONES
Established
k
1904
Eastern
Sugar Associates;
Petroleum
Heat &
.
Common
Power
j
Co.
i
\
.
"peter
32
'
50
Broadway, N. Y. 4
.
HAnorer 2-8380
Tel.
FREDERIC H. HATCH i CO.
.
barken
Broadway, New York 4, N.Y.
WHitehaH 4-6430
i '/,•
Tele. NY 1-2500
*
■■■."•[
•5
Incorporated ' "
INDUSTRIAL
■
.
~
MEMBERS
63
Wall
N.
Y.
SECURITY DEALERS. ASSOCIATION
Street, New York 5. N. Y.
{
•
Bell Teletype NY
|
/
St.
J
-
V
"'>•
-
BONDS
■'
Knowledge
h
.Experience
..
/
'/V" iST" *
•rrearr's
>
*
|
STOCKS/"
INVESTMENT
■
•
Facilities
-
•
A*
"■
Devonshire
201
RAILROAD. PUBLIC UTILITY
r
1
!
'•
^
Street,' New York
' ' *
/ '/ <" ri•" '
I
•/
GOVERNMENT, , MUNICIPAL, |
i
/,/'*
CO.
Orleans
Members New York Stock Exchange*
68 William
&
Successors
'
R. W. PRESSPRICH & CO.
BOSTON:
-
I't
*
1-573
..
1946
1951
5 %s
Securities Co. of N.s Y. 4 %
Gilbert & Bennett
W. J.
Wires
Direct
Minneapolis-& St. Louis Ry.Issues /
REQUEST
y
HAnover 2-2600
"
'
'
;
Crescent Public Service 6s 1954
East Coast Public
j
American Insulator
t
(
Monoxide
Eliminator
Company /:.*/
i-i
"
N. Y.
NY 1-1017-18 &
Teletypes:
-
/
/. Carbon
YORK 4,
Telephone:
?
Teletype: NY 1-375
\
STREET
NY 1-584
Community Water Service
Farrell-Birmingham
Established, 1922 .f/v.T
NEW
'
Trinity Place, New York 6, N. Y.
.
;
■
BROAD
30
1914
Telephone:^ BOwling Green 9-7400
v".
•
qAllen & Company
/.xvr, -
Analysis
/
.
Trading Markets
,
v
:
,
1-897
-
t
.
•,
1
I
Teletype NY 1-395
.
Members New York Security Dealers Ass'n
Capital
Members New
♦
:
Corp.
Current. Liabilities
mined by the idea that Canada's
competitive position in the world
markets
areas
/f/;
Jonas & Naumburg
program ;
rational
; coun¬
2749)
on page
the
cial White Paper on the economic
Deal
(Continued
s
years.
tion' and call for careful study of
in / the
1
a
evidence
past 25
Royal Bank of Canada
be¬
The
be
and
newer
•-,/•
provided is restricted to
are
have
third, the demands for capital in
3. The period for which benefits
Dominion for the next five years,
come what may.
The recent offi¬
a
-:•/
/
'
managers
i t
with
to
seem
accounts
of the
experience
-progress
would
abroad.
v
the
fore them very good records of the
tries that have
/ not kept pace
Dr. Ivan WHght
apd
investors
needs for capOlder
}
here'/ and
Canadian Bk. of Commerce
words, the mid¬
in
are
to
one
.
tractive * both",
Bank of Montreal'
at¬
were
The
of •' investrtient
,of. 1 the, wartorn areas; the
;/
Interest/rates
year,
a
majority of the victorious Liberals
;
for
need
together, but not to deter
the worker from looking for a job.
A
new
"baby
bonus" V subsidy,
Dominion /elec¬
past
The
.
a
forces explains this discrepancy to
some
extent.
The
radical CCF
in
world.
is
own needs for. capital
generously to the, whole
our
lent
and
than;
First There
After the First World War the
/
plied
in this country.
•'
v.;/// V '
i
the
2. In Canada, the highest weekly
i
.? :
,
investors in the United States sup¬
^.^rehabilitation
'V.'": /_'■/'■:// ;'v
ers.:
;
greater
a remunera-
exceeding $2,000 per year
except in the building copstrucr
ion industry) are not eligible for
)enefits. The idea is that people
Who earn rhore than $2,000 should
be
able to", provide for a rainy
day. In this country, the amount
equivalent in purchasing power,
say $2,500 per year, would at once
exclude most qualified war work¬
a
lights,
rais¬
By con¬
■>
t
needs for
investm e.nt
-capital ip for¬
eign countries
'/a re/; much
outstanding:
Employees with
ion
endeavors
vey
v The
.
.
following features
f
The
wages by indirection.
Capital
Come From? ;*;
//"• '
\
"
trast,
the Canadian unemploy¬
ment insurance is handled strictly
on
an/insurance basis with the
*
economic
policies;.
is .tantamount,to
.
payments; and
t h e : general
direction
dole
AH This
Will
Where
'
billion dollars,
home, the President's $25 a
week
Domini on's
balance; of
its
At
-
the
on
•
perative. /
Take
unemployment
benefits as an. example. -.
-:;/'. ;
•
the
.
.
'• Never before has there been such need for
large quantities of
investment capital.
The estimates for immediate needs in this coun-
~
7
Kidder, Peabody
Heavy Demands for Investment Capital, ; 'Kidder, Peabody. & Co',17 Wall
Street, New York City, members
Both at Home and Abroad, and the Investment Banker's
Responsibilities Of the New York Stock
Exchange, Jin Fulfilling the Demands Are Complicated by
Cheap Money, Low Inter¬ announces that Captain Francis J."
est Rates and Socialized Lending. / Enumerates
Obligations of Invest¬ Cunningham, having been released
from
active
ment Bankers to Public and Stresses Their Task in
service./ after ^2^
Maintaining Sound
years overseas, has returned to the
Money and Financial Practices as Well as Aiding in Restoration of Free
firm/ He will be in the Trading
Enterprise cand the Promotion of Both Individual Initiative and a Proper Department; of /the. - New York ?
Caution in the Use of Borrowed Capital or Taxpayers' Money*
office.
;
-
Ipilization of prices and wages im¬
5
tion; the1 fi¬
nancial, " s e tup; '
•'—f—
'■
~
-
Economist Holds There Will Be
.From the investor's point of view, four primary and closely inter¬
related factors enter into the determination of prospective trends in
Canada:
to
By IVAN WRIGHT
/■.
a
2701
Canada's Prospective Trends
1
j :
f
«; » '•
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
Vv far Investors
'
'v
•
*.
*-•
/■%/*„,
"
.
THE COMMERCIAL & FINANCIAL CHRONICLE ;
2702
Gentral
Boody, McLellan Change
B.
general partner
Walter Vos,
Boody, McLellan & Co., Ill
Broadway, New York City, mem¬
bers of the New York Stock Ex¬
in
limited partner
change, became a
effective Nov. 23.
Republic Go.
Opens Cleveland Office
Connors With Firm
OHIO — Central
Company,
Inc.,
has
CLEVELAND,
Republic
opened a
1
new branch in Cleve¬
land. Associated with the new of¬
BALTIMORE
is
fice
Bayway Terminal
pany
and its sub-holding company,
Buffalo, Niagara & Eastern, was sub¬
mitted to the SEC (following settlement of the fight between various
with Otis & Com¬
:
Manual
DES MOINES
interested, in
firms
plying
Iowa Power &
Stock
Exchanges and other leading exchanges
Bank
;''y' y';!.
United Light & Rys.
Bell Teletype BA 393
BOSTON
Common
MOINES
DES
9,
IOWA
;
BUILDING
Owns
i
cant—National
omic
construction
•
furnished on request
.
Memorandum
>
Priced
''
:
about
'
'•
v.-
Request
on
Mercier, McDowell
y
•
.
•
& Polphyn
<
Members Detroit
'•
•'
•'
- ■
Buhl Bldg., Detroit 26
•;
1—1
to
Lucas
ery
The
1&#•.;
GRAND RAPIDS
have
and
San
and
in
associated
become
Stock
Francisco
^other exchanges.
formerly
a
partner
Ea'stland, Douglass & Co. and
thereto
was
officer
an
of
Sargent, Taylor & Co. Mr. Lucas
Tyler Fixture Corp.
Boston Edison
Common
••—i'
.'
Inquiries Invited
Thomas K. Wright Joins
s. R. Livingstone
RAPIDS
Teletype GR 184
Book value—around $18.
Good
earnings
all
through
Chronicle)
associated
become
..&Co.,
in
Building. In the past he
charge
municipal
the
of
'
principal features of the plan in
1945-
'
'
/'
.
retirement
the contro¬
versial B< NV & E. P. $1.60 (2nd)
Preferred stock at the .call price
plete
of
plus
$26.25
of
dividend
arrears,
y/hich has already been done. The
merged Nov. 1 with
certain subsidiaries (Buffalo Ni¬
agara Electric, Lockport & Newfane Power & Water Supply, and
Niagara, : Lockport : &
Ontario
Power), retaining the name Buf¬
falo
Niagara" Electric.
The 1st
company was
stock
Preferred
the
has
been
ex¬
5% issue, with
arrears on the old stock paid
at the time of exchange. The
changed for a
company
with
of
took
the bond¬
over
a
companies
refunding program
-
tax
creased
by
about
on
pre¬
haps in January.
The
will
stock
y
v
,
.
company's
new
all
be
common
owned
the
by
parent company, Niagara Hudson
Power, which has put up the $63,000,000 cash necessary to retire
the $1.60 Preferred.
Niagara has
sold
of
some
miscellaneous
its
holdings and pbtained
$40,000,-
a
of about
N.
B.
funded
be
on a
the
new
Niagara is also reduc¬
value of its own com¬
mon stock to $1 a share in order
to permit an adjustment of sur¬
plus and take care of certain write¬
offs which were demanded by the
company.
ing the
FPC
in
par
several
years ago (resulting
series of events which led
the
up to the present reorganization).
This adjustment will permit clear¬
ing off arrears on Niagara's two
preferred stocks and open the way
for payment
common.
of dividends on the
Eventually the preferred
stocks may be eliminated.
(
"
.
"
bqsis, there would
$1,100,000.
;;
V
savings and the'
reduction of $700,000 to the
Adding
tax
these
after
balance
the
Preferred
1st
dividends gives a figure of $7,278,-'v
000.
However, this is after
vation
000.
of
income
net
reser-:
of subsidi¬
amounting in 1944 to $1,476?It is thought that this item
voided
be
by
the
present
changes;: in any event it is sub¬
stantially equivalent to additional
net income.
Adding this amount
gives a balance of $8,754,000 for
the new common stock, all held
by Niagara Hudson.
Since the ;
new Buffalo Niagara Electric is an \
operating company with sound'
capital
structure,
the
common ?
could probably be capitalized at
around 15 times earnings which
.
afford
value for Niagara
a
about
of
$130,000,000.
Thus it would probably be neces¬
sary for Niagara Hudson to sell
only
about
one-quarter
of its
holdings to pay off the bank loan.
;
However,
SEC
the
quired ;;sale
of
all
order
of
the
stock, presumably by Nov. 1, 1946.>
this is modified, the sale
will yield Niagara Hudson an es-f
timated $90,000,000 in excess of
the amount required to pay off
the loan. These proceeds might be
used to retire Niagara Hudsonls
1st and 2nd preferred stocks with
their
At
arrears.
the
end
of the
call
prices and arrears
(Continued on page 2770).
year
.
We maintain
many
Preferred
Hialeah Race Course
Fonda, Johnstown
Louisville Gas Pref.
"
.
All
Winn & Lovett Grocery
public utility companies and through
'.7;; the facilities of
.
& Gloversville RR.
war
active market in the stocks of
an
system are
trade
Issues
our
our
'
direct private wire
especially equipped to
those
markets
various
offices
in
Milligan & Higgins
where
are.
located.
■
Market
about
7'
12%
m
BANKERS BOND
™
'
Circular available
/
Incorporated
/
1st
LERNER & CO.
10
POST
OFFICE
BOSTON
LOUISVILLE
SQUARE
1
George R* Cooley &Co*
inc.;
Established
»
2,
KENTUCKY
Bell Tele. LS 186
Long Distance 238-9
9, MASS.
Tel. HUB 1990
"
Floor, Kentucky Home Life Bldg.
52
William
"
.XV
ESTABLISHED
1879
:
.U-
:
V'/,'J
•
■
1924
St., New York S, N. Y.
WHiteball 4-3990
Teletype BS 69
Paine, Webber, Jackson & Curtis
......
Teletype NY 1-2419
ST. LOUIS
American Gas & Power Company
USE
New England Markets
Retail
New
•
•
•
4
Secondary Distributions
•
Stix & Co.
Industrials—Utilities
INVESTMENT
509
SECURITIES
OLIVE
STREET
Inactive Securities
F. L. PUTNAM & CO.. INC.
Portland
'
LIBerty 2340
Providence '
'
Springfield
.
Bonds
5J/£% yield.
legal for
banks
Write
&
for
savings
Central Public Utility Corporation
Crescent Public Service Company
information
Security Adjustment Corp.
Members St.
Louis Stock
Exchange
ESTABLISHED
Members New
16 Court St.,
York
Portland Electric Power Company
trust funds
St. Louis l.Mo.
Street, Boston 10, Mass.
Tel.
obtain
To
Associated Gas & Electric issues
•
Bank and Insurance Stocks
77 Franklin
or
CALLED BONDS
England Coverage
•
t
CASH
1935
Security Dealers Ass'n
B'klyn 2, New York
TR. 5-5054
Gilbert J. Postley & Co,
29
BROADWAY, NEW YORK 6,.N. Y.
Direct
re¬
new
Unless
Buffalo, Niagara & Eastern last
Law, Inc.
,
$350,-
would, therefore, yield savings of
Hudson
in
es¬
000, less the 16% surtax or a net
saving
of about
$300,000.: The
complete
refunding
program
would
stock
4%
additional saving of
an
liquidated through partial sale of
common
basis, it is
two
$800,000. Assuming that
E. $5 Preferred is Ye-.'
&
000 bank loan which will later be
the
2%%
The
refunding op-'
will, it is thought,, cut
fixed
charges
about
one-third,
effecting a net saving after taxes
may
5%
the
in¬
$700,000..i. The
erations
SEC, proposing to issue
$56,929,000 new 1st Mortgage bonds
new
a
timated.
to refund five issues of the former
The
under
would be
law
about
Niagara Falls Power 3V2S will
probably also be refunded in 1946
aries
subsidiaries.
;——
which
$5,478,000,
present
new
the
Albert Frank-Guenther
Girdler Corporation
period.
Company would benefit substantial¬
ly from tax reduction.
Oregon's
huge
highway
program
ready to start.
• T- /V
f
'
.
PUBLIC UTILITY STOCKS
L
American Turf Ass'n
Common Class "A"
Capacity—900,000 barrels annually.
•
& Co.
Financial
& Co.
American Barge Line
Oregon Portland Cement Co.
that the program is now well
along Toward completion.; Pos¬
sibly tax savings were a factor in
effecting
consummation
of
the
————'■,
—
reported net income after 1st
preferred dividend requirements
year
department for Watling, Lerchen
LOUISVILLE
We Suggest
has
Penobscot
was
Private New York Telephone
REctor 2-5035
The
Si, .--It;, Livingstone
with
2
MICH. TRUST BLDG.
Phone 94336
Street, Boston 10
•
Wright
Detroit Stock Exchange
GRAND
Dayton Haigney & Company
to
DETROIT, MICH. —Thomas K.
white, noble & co.
Members
•
and
%'■
(Special
•
Goodwin
&
—————
■
'
Submarine Signal
•
partner in Wals-
Eastland, Douglass & Co.
England Lime Common
75 Federal
a
Hoffman
ton,
Boston & Maine Prior Pfd.
New
formerly
was
TRADING MARKETS
—
so
ferred will also be refunded, per¬
Chronicle)
Co., 407 Montgom¬
Street, members of the New
prior
Preferred
consummated,
ed debt of the merging
-
Sutro &
Exchanges
9, MASS.
Teletype BS 424
—
Financial
Mr. Taylor was
Shawmut Bank Building
Econ¬
of
Bureau
FRANCISCO,: CALIF.—
L. Taylor and John J.
Howard
York
Tele. DE 507
duPont, Homsey Co.
Capitol 4330
(Special
y
with
Stock Exchange
Cadillac 5752
BOSTON
I
VSAN
4%
Metz—
Taylor and Lucas With
Sufro & Company ; 7
Protected by patents
Reports
rapidly
and has filed
Shelter ;y; yy
Manufacturing Corp.
;;yy"
fabricated
of
been
York
I*■'. i
LATISTEEL, Inc.
Manufacturers
hew plan and the legal work has<S>
Research, 1819 Broadway, off
23, N.- Y.—paper—50c.- hew
New
Electromaster, Inc.
<
W.
dustry 1899-1939—Solomon Fabri-
|
STOCK
Federal
Brookings Institution, Wash¬
ington, D. C.—paper.
;
Labor Savings in American In¬
DETROIT
70% of
the
of
The
AUTOMATICS INC.
A Low Priced
Policy
Government—Harold
;
>
Bell Tele. DM 184
Phone 4-7159
.y-7;;y7: 7 V•'
"V
-—paper.'.'; • :
•'
BUILDING
EQUITABLE
JOHNSON
4
A
—
State
Bankers < Association,
33
Liberty Street, New York 5, N. Y.
Labor
.
Relations
Human
Policies and Practices—New York
Preferreds
2-3327
Rath Packing Co.
;
sup¬
Study of Modern Bank Personnel
i 6 S. CALVERT ST., BALTIMORE 2
New York Telephone Rector
now
on
been carried out with amazing
| The new plan provided for com¬
Light Co.
Preferreds
or
services
or
and Deposit Company of Mary¬
land, Baltimore, Md. — paper—
free.;;'y- '7: 7777wi'-iv-; .r r*
stein bros. & boyce
Baltimore
un¬
to the
Government. —■" Fidelity
goods
Federal
INCORPORATED
&
fourth
—
obtainable information of value to
WHEEtOCK & CUMMINS
York
Contracts
edition—providing otherwise
Common
New
Under
Procedure
of
Government
..777v;:7,
Davis Coal & Coke
Emerson Drug
July 16, 1945, changes in the system set-up have
speed. Neither the SEC nor the New
York Commission have apparently interposed any objections to the
security groups)
in charge of the municipal
department.;
Niagara Hudson Power
*
Since the new integration plan of Niagara Hudson Power Corp.
):
formerly
Conners,
Harry
for many years
Members
Thursday, December 6, 1945
Wire to Chicago
on
U
2703
the power you do not need to be
right. In other words,' that "might
right," That is what Hitler
taught and what we fought a war
makes
By OKVAL W. ADAMS*
[
Slovakia and Philip Murray's de¬
mand
United
on
States
Steel,
which he said was not
subject to"
"dickering or compromise." Law
to. refute.
is intended to insure that might
There is an1 uncomfortably dose shall not
prevail over right.
In
resemblance between Hitler's the
past, when might was found!
^charges against Poland when in¬ being used to prevent right a
vading
Poland,
and
Reuthers legal remedy was provided. Thus
charges against General Motors successively blacklisting; rebating
.
Iy0:;Executive Vice-president^ Utah State National Bank;■•"Salt'1 Lake;. City, Utah.."
Asserting That
■
;
•
j;
Rash of Strikes Is .Breaking Out Throughout theCountry,Mr.Adams Ascribes It to the
a
That Might Makes Right SaysWeCannot Expect to Suppress AggressiowAbroad
Homeland Contends That Labo r Uhic>n s Under the Law Are Permitted to Use "Violence
and Force as a Test of Power as Against a Test of Liberty ahd to Violate Written Contracts With lmpunitV.
Urges Revision of Law Which Will Place Employer and Employee iiif a Position Where True Collective Bar¬
gaining in Good Faith Is Possible. / :.-v\ - « " ''-'v; ■-/.!*.,■' '
False Hitlerian: Principle
While We Permit lt
at
when attacking that company, and
a
like uncomfortably close re¬
semblance between Hitler's "take
■
■'
it
f 4
or
leave it" demand On Czecho-
by railways, underselling to drive
out
competition, limitations on
resale prices even of patented ar(Continued on page 2789) ;
With; the rash of strikes breaking out all: over .the .country, ini-^,..\t ..
* - /J~•,
:1 -'j.;
txated by< labor;; leaders seemingly unconscious of doingany ,wrong, the; rule that" "a problem accurjand apparently <S>.,:,^;;;r:^.btely^'"stated.':is: half Solved."
f
.
„
'
'
''"
'■
;
'
'
'"
acquiesced in
by ;the .: great
^bbdyVofJthe
pub lie, the
question
is
raised
ally
r e
conscious of
theprinciple
underlying
V such actions;*:.
I
.
we
in the
.time
fac^ td face with the fact that wie
must: first recognize the basis oh
consciously "^acquiesce
,
of force at home.
use
.:
■
;' I believe it is
•
strikes
which
time to stop and
we' can
back/ on: 50
Looking
research I
that has
our
years
called
We take
I
George K. Coggeshall
attempt' a" sblution td the
problem confronting
'»
;the -country today,
has been elected
Power and Right
j'
Strikes are called on the demen tal principle that if you have
/
comfort, security, and enjoy>
f
formulates
.
/
and will be in charge of
'
,
our
New; York Office
not,
that
W#
would be¬
fore
Vice President
a
f.
.
cannot
believe
we
are
pleased
SGHOELLKOPF, HUXTON & POMEROY, INC.
that
to announce
World
a
BUFFALO
Court beseefc-
Adams
pleasure in announcing that
beforje
most; serious
of
and^ bxneriment^^^ of 4 work
so richly contributed to
ment, C. F. Kettering
are
that
are
for
W.
same
strongly
suspect
Orval
wage an aggressive ' war is an
Apply that to the matter of
international crime I ahdat Vthe" labor ^relations and we are brought
to
to
as
whether ' 'w;e
are
,
yy\y yy~5''. ing to estab¬
CLYDE H. ANDREWS
lish the principle that conspiracy
new york
December 1,1945
!SAn address by Mr. Adams be¬
>
fore, the Utah Automobile Dealers
Association at
Dec. 6, 1945;'
Salt
Lake
w
City,
•
now;
associated :]with
our
organization
•
1915-1945
*
"
*U: 5. SUGAR
Brailsiprd & Go.
.
'
Com.
.
&
Pfd.
;
;;
IJiVESTSIEST SECURITIES
**ARTCRAFT MFG.
"
.
On
2OB SoutR La Salle
i'
HOWELL ELECTRIC
,
Hemphill, Noyes CBs Co.
,.
^-5 ^ Members Chicago■ Stock Exchange
;
Chicago
Street,
Telephone State 9868
r
generation♦
Teletype CG 95
THE FOLLOWING'SONS
f
*WELLMAN ENGINEERING
their Thirtieth Anniversary
welcome the second
•
OF
PARTNERS, HAVING
BEEN RELEASED FROM ACTIVE MILITARY SER¬
**AIR CARGO TRANSPORT
,
Bought——Sold—-Quoted
;!.-ty:
'
,
v;:
a/TCW
;
v...>'• :uv;--•'
^Circular
.
on
**Prospectus
VICE. ARE NOW
v,
We
*,''v.[
pleased to
Request
^
,
V
Coloneir Army
(Lt.
.
Members*
York Security Dealers Assn.
New
Vt;
40 Exch. PL, New York 5, N. Y.
ffAnover
,;
Bell
Private
System
Wires
to
2-4785
Teletype,
t-2480
Los
&
lieutenant
Securities
Underwriters andr Distributors of Investment
70 Pine Street
a; u. s.
^
■;
Hemphill, Jr.
commander, u. s. n. r.
Harold
New York 5, New- York
<.
rf.
C.
Strong,Jr.
lleotenant commander, u. s. n. r.
■
NY
Chicago
yyyylieutenant;
v-,v:
FIRST COLONY CORPORATION
..v,,-1;
■
commander. ij. s. n.
Clifford
J.F.Reilly&Go.
FIRM.
NixoN -GriffIS
Air Corps)
has been elected Vice President
v
WITH THE
Jansen:Noyes, Jr.
CECIL P. YOUNG
yyy&yyyyy'}
'-
that
lieutenant
request
on
announce
ASSOCIATED
:
,
Teletype NY 1-2425
'
--;-t
, :
"
HAnover 2-7793
•
Angeles
DECEMBER S.
J945.
:y
ACTIVE MARKETS;
Great American Industries
FERRIS,EXNlClOS & CO., INC.
"
Common
United Drill & Tool
•MAVV'V.;:-;";. C'B")
;
,-
■■..•■
.
I
..announce
Common
Dayton Malleable Iron : I
Common
^
"
We
!
•
':
*.; WASHINGTON-
D. C.
•
v••
.
'
The
'
MR. FRANCIS
Telephone;National 5924*'.t
A Teletype'WA-2G3
will remaiiii
''
Preferred
yy•
a
has become associated with
6%
Preferred
also
67 Wall
HAnover
Teletype NY 1-2630
Offices At
JOHN W. MAHER
"
Iv ;'
Hagerstown, Md.
.
Cumberland, Md.
'
LOUISVILL8
Washington, D. C*
MEMBERS OF NEW YORK STOCK EXCHANGE
;;:'
and other
leading exchanges
Street, New York 5f N Y,
WHitehall 4-2422.
2-9335
PHILADELPHIA
specializing in
With
.
Street, New York
Telephone
Telephone Plaza 8400'
NEW YORK
Canadian & Domestic Mining Issues
62 William
Established 1853
r
r
;
*
our
6 S. Calvert Street, Baltimore 2, Md.
MAHER & HULSEB0SCH
Preferred
JAMES M. TOOLAN & CO.
in
TRADING DEPARTMENT
,
ANNOUNCING THE-FORMATION OF
1
Associated Tel. & Tel.
I
us
unchanged.
As Brokers & Dealers in Investment Securities
Associated Tel, & Tel.
7%
E. KING, JR.
SteinBros.&Boyce
Telephone Bond & Share
Class
that
Officers and Directors of the Corporation
; Dlgby 4-2370
Teletype NY. 1-IM»
7%
announce
.
Telephone Bond & Share
:
pleased to
are
II
SIEGEL & CO.
',, •
incorporated
WASHINGTON BUILDING
'
.
to
V
:VvU-::}'
4
name
'
& Pfd.
.
89 Broadway, X.V,
change in
FERRIS & COMPANY
Kingan Co.
'■
a
|
December 3,1945.
/
GERARD F. HULSEBOSCH
.
-
2704
COMH&RCIAL
THE
& FINANCIAL CHRONICLE
-
Thursday, December 6/ 19*45
Commercial Bank Installment Credit Plans
By DR. CLYDE WILLIAM PHELPS
■,
.«
-
V •'
Department of Economics and Commerce
>
,
'V
•
-
University of Chattanooga
The
action this week by the Office of Price Administration
in approving higher ceding rents for a large apartment pro¬
jection will in all probability stimulate new construction. ,:
,
Dr.
Phelps Recounts the Progress Made by Commercial Banks in Direct Installment
Financing Under the Influence and Aid of the American Bankers Association. De¬
scribes Post-War Plans for Handling Installment Sales Paper, and Points Out Advant¬
ages and Disadvantages of the Bank Credit Time Payment Plan, Whereby the Banks
Lend Direct to the Installment Buyer.
Tells of Syndicates of Local Banks for Cooper¬
ative Handling of Installment Credits and the Bank-Agent Plan, Whereby Insurance
Agents Act for Banks in Procuring Installment Paper. Shows Installment Financing
Is Being Extended to Payment of Hospital and Medical Bills and Concludes That Con¬
sumer Loan Field Will
Expand Enormously With Consumers Literally Swimming in
(OPA)
The
involved
114 apartment project
to be erected in
White Plains, New York, by K. M. Dinsmore & Co., Inc;-><'j
case
was
a
The new ceiling allowed by OPA will be slightly less than 20%
higher than ceiling rents presentin.: this
Jy enjoyed by current buildings.
type of property- to be
Estimates
of
construction
the
are
of
cost
new
35%
about
to
.40% higher than the cost of con¬
struction in 1941.
made for
long
as
five years- in
as
advance.)
We again wish to offer the
...
advice that in order to receive the
income
full benefit of the rise in the real
practical purposes
; compensate for the higher cost of
be desirable to select bonds which
'The
should
:
in
increase
20%
for all
and
construction
age new
i
;Now
i bonds
would
should
encour¬
building,
l
that
many
real
estate
selling near par,', we,
are
in the,
suggest, caution
se-
lection-of these securities in view
of
the
probable competition of
in the next few
buildings
new
<years.
•.
a
-for
for.
fixed income from
apartments
are
made
two year duration).
one or
a
tin
determining the stability of
income of, an office or loft build¬
ing,
a
'used;
them
with
carry
share
a
in
r
equity ^represented by stock;
Several
reorganizations are
because of ex¬
piring mortgages and the inabil¬
ity. of refinancing.
Latest j an¬
nounced was 322—8th Avenue this*
week.
vv'nA| v \ .
.
different yard stick
Sea of Credit. V/f;
a
the
Commercial
may
be
(It is not unusual for leases
lation
least
*
and
W
T h
( consumer
&|
con¬
credit,
to
Harris, Upham
Harris,i Upham &lCo., 14 Wall
Street, New York City, members
of the New York Stock
the
announce
of
ner
Lt.
return
,.v
Exchange,
a
part¬
James
F.
consumer
ll a n c e
charge of the Bond and
Over
the
Counter
depart¬
-
ments.
en-
stallment
Burns, Jr., recently released to in¬
duty after
a
three-year
the
and
actively
gaging
as
Colonel
ments
.
Burns
is
in¬
fi¬
was
sales
the
of
Association
of
based
upon
in
sand
Drj
returns"
a
ques-
'
thousand
H. W.
Byrne Rejoins
F. M. Mayer Staff ; |
F.
■
M.
New
George, 4's
"
;
banks
"
installment
thari 14
■/
2
/
banks will be actively engaged
in
consumer
OF
larger
of this business than
American Locomotive Co.
(Continued
•
SECURITIES
commercial
is much
loans
in all phases
about ; 10,600
banks,-
/ of
planning to make
on
tf
2755)
page
Brill Corp.
V
Chicago and North West RR.
Chicago and East Illinois RR.
that
announces
&
1
.
UNEXCHANGED
newj corj-
Chicago Great Western Ry.
Henry W. Byrne has been released
from
Broadway, 4Ws
City,
Street,
made on old
Mayer, 30 Broad Street,
York
Winchester
bids
credit departments.
The '• number
Wm. Phelps
C.
:f
tionnaire survey of more
Primary Markets in:
charge of the banks'
§.umer
thou¬
11
Great
small
or
industrial banks and placed them
from
REAL ESTATE
companies
cording
over
Stock Exchange Firms..
finance
loan companies or officers of local
to a
report,
London'representative at
cause
substantial l.y
smaller,
i Ac¬
former
a
-found"
their
-
Col.
president
it
profitable, j land
experience is expected to
many other banks new to
the business to participate, j In a
number of cases, the banks have
secured
managers
of offices of
have
;
in
recent
Hallgarten Appoints i f
Representative
London
ly compete in consumer install-;
r;Hallgal ten
ment lending in the years ju^t
Co., announce that
ahead
as
compared with -about; Hugo W. M. Fleury, who has been
70%
in
the immediate
prewajr associated, with! Helbert Wagg and
period/
Banks / already ; in j K thje
Companyv Ltdi,:for over twenty
field will attempt to extend itheir
years, has joined the firm as its
operations because most of them
personal,
loan,
depart-^
will be in
SECURITIES
the commercial banks will active¬
p r
iV-v''.'
phase of consumer install¬
iinance,after reconversion.; *
appears that at least 90%'of
It
installment
number
sumer
V--:;'V-ry:
f
some
12,586.f
having
Jas. Burns Returns
•
ment
jh; 1941 and holding at
some
e-
;•
trus!<^
<
e r • o r'7- ?;.(&;/
m
loans, number,
leave of absence from the firm. He
165
banks
p a p
active
Hotel St.
;
companies, registered under Regu¬
still taking place
'■ v;
this type of property is only staibilized for a short time (usually
leases
securities'market, it would
about
\ f;This
applies mainly to resi¬
dential properties inasmuch as the
^insurance of
estate
NSTA Notes
active duty with the armed
forces and is again associated with
f
Consolidated Film Industries
fv
Consolidation Coal
f
Cuban Dominican Sugar
J
*
him..
870-7th Ave. 4K's
v.f,,/•,
•'.f: •' f:
„
,7,.
(Park Central Hotel)
Pes Moines and Ft, Dodge RR.
McCarley Forms Own Firm
Savoy Plaza 3-6's, '56
ASHEVILLE,
Beacon
★
Hotel, 4's
Bell
The
business.
on
Mr, McCarley, who was
active
duty
with
the
U.
until
Dlgby 4-4950
Teletype NY 1-953
September
1945,
merly with McAllister,
Pate.
Smith
19451946
consists of:
Erie RR.
-
the
R. J
National
fj:'
;
f
Security Traders
v
Kelly Springfield Tire ;f f.i
Glas, Glas & Crane, New
Orleans, Chairman; Ewing T. Boles, The Ohio Company, Columbus,
•/;-<
Ohio; George Lestrange, Moore, Leonard & Lynch, Pittsburgh, Pa.;
,
Lackawanna RR. of N. J.
f
Manati Sugar Co.
Minneapolis and St, Louis Ryf
Mobile and Ohio RR.
J
Jr., Sanders & Newsom, Dallas, Texas; J. C. Phillips, Pacific North¬
west
&
Co., Seattle, Wash.; Ludwell A. Strader, Scott, Horner & Mason,
N. Y. Lackawanna and Western
•
Inc., Lynchburg, Va.
'
>
Committee of
Pettey, Equitable Securities Corp., Nashville, Tenn.; W. R. Newsom,
for¬
was
Membership
\
Iowa Central RR.
Cecil W. Weathers, City Securities Corp., Indianapolis, Ind.; Herbert
S.
Army Air Forces from June 1942
Exchange
f
SECURITY TRADERS ASSOCIATION
Association for
Street to engage in the securities
Mmibfri New York Stock Exchange
40 EXCHANGE PL., N .Y.
NATIONAL
N.
ley & Co. with offices at 2 Wall
SHASKAN & CO.
Member! Now York Curb
C.—John
McCarley, Jr. has formed McCar¬
ff/f
;• ★
N.
-f\
N. Y. Railways
f
"-v
Norfolk and Southern Ry.
First California Adds
TITLE COMPANY
SPECIALISTS
BOUGHT
-
SOLD
/
i
-.
in
Real Estate Securities
Complete Statistical Information
39
Security Dealers Assn.
Broadway
New York 6, N.
HAnover 2-3978
-
Seligman, Lubetkin & Co.
Incorporated
'
Members New
\
Teletype NY-1-1203
'■
;■
associated
41 Broad
York Security
-•
.,
Street, New York 4
•
-
v
Dealers Association
H Anover -2-2100
CO-OPERATION
vIf
your
We
can
trial
Wall & Beaver 4*4/51
Western Pacific RR.
Bell Teletype SF 61 & 62
*+1*p>.,- .Jt' C, "AY*-
GUDE, WlNMILL & co,
'v
Members New York Stock Exchange
St., New York 5, N. Y.
1 Wall
Dlgby;4-7060"
I
or
a
•
'
-
"distribution" job and want either help
organization,
or
someone
else
with
place substantial blocks of good quality indus¬
other preferred or
common
I
AM
J
HAS
ARMED
■'IN
Incorporated
150
Broadway"
BArclay 7-2360
..
.*
.
.
.„
/
■■[■
FROM
IS
AND
f
,:v''■
DUTY
ACTIVE
WITH
-v"
THE
AGA^IN ASSOCIATED WITH ME
stocks both at retail
30
New York 7, N. Y.
Teletype NY 1-588
THE
TRADING "DEPARTMENT
f. m. mayer
,
Tel.
.
-'?.M fv":;;
RELEASED
FORCES
/..
ANNOUNCE THAT
HENRY.W::BYRNE
■•■y.ya
„
BEEN
TO
PLEASED
MR.
the
to do the job, please get in touch with us.
f. f
i
'
BROAD
NEW
STREET,
»-i
-
*'
*
YORK
*
Telephone HAnover, 2-0322
-
"
\
j
-Teletype NY 1-855
v
'ij►
Amott Baker & C o.
4
;
First
the
with
Incorporated, 650
Lawrence
was
previously with Merrill
Lynch/ Pierce, Fenner & Beahe;
and Kaiser & Co. Mr.1 Edwards
was with William A. Lower & Qo.[
and • Mr. - Middleton with Hartley;
■
and wholesale.
J. S. Strauss & Co.
Montgomery St., San Francisco
own
"know how"
165 Broadway Bidg. 4Vk/58
188
have
you
for
^Broadway Trinity 4y2/63
..
be¬
Markets
Broadway Barclay 2/56
t.
Co.,
•
Trading
,
Wabash Ry.
Rogers & Company.
Firm
•
South Spring Street. Mr.
v
Y.
have
Middleton
E.
California
L J. GOLDWATER & CO
•'
Lawrence,
Harrison
1929
come
Members New York
■
ANGELES, CALIF.—Wal¬
Thomas J. Ed¬
wards, Donald W. Mansfield, and
E.
i
Studebaker Corp.
Suffolk and Carolina RR.
LOS
•
-
...
Since
f
,
ter
QUOTED
-
•'.
f
*
Lawrence, Others
CERTIFICATES
f
Raleigh and Cape Fear RR.
if
.
f
Volume462
The Wheelei Bill
By ELISHA M. FRIEDMAN
■>.*•■■
^
A
cial
are
an
should be used
a
and
new
broader
way.;
probably could have been avoided
for most of the 19 major roads
The ICC might
decide
t hat
not
of
total
capital¬
a
b
bonds
limit
1942
1930.
this
o v e
and
be
high
refunded
and
.
South
Louis
St.
convert-,
ible
bonds.
high
conversion
1930.
Elisha
Friedman
prices should be
staggered
New- Haven
129
as
to
132
•
^
•
the
Therefore,
ed into stock and would
disappear.
Their fixed charges would cease.
Such bonds, with a speculative
option, could be easily sold. The
Stock would not be subject to any
amortization
charges
and therefore could pay good di-
Strangling
should
1253,
Underwriter WANTED
by Investment Firm
client,
a
leading Pa¬
Investment
Coast
Securities firm offers
an
unusual opportunity for
thoroughly experienced
in
underwriter
its
San
Francisco office.
fully in confidence to
ALBERT FRANK-GUENTHER LAW, INC.
Bid?., San Francisco 4, Cat.
York—Boston—Philadelphia ,Cl
Chicago
:
manager and
;
1
—-
active
in
all
securi ty and commodity mar-
kets—has
an
opening
mid-town. hotel
?
new
*
for a Manager and
in
its
office
Co-Man-
| ager. All inquiries will be
held s tri
i
»
gered
as
about
day
been
so
and
important,
seemed
bill
The
should
,
be
to
us,
a
few
of common
important in ..view
in¬
.
c 11 y confidential.
Reply Box 10, Doremus &
Co., Advertising Agents, 120
Broadway, New York 5, N, Y.
;;
INVESTMENT SECURITIES
:
stocks;
;
man, ofRutgersUniversity, searched
^
^
line
to
Ispace to tell
ate
more
than
a
well-founded hope
that Streptomycin is a weapon to
battle, and to destroy,
of
products have
proven fruitless.;
INVITED
INQUIRIES
ALL* ISSUES '
it only in
SECURITIES
selected
...
Yield:
-
.
York 8, N. Y.
Co.
Kaiser &
About 7%
25 Park Place, New
'
MEMBERS
.
NEW YORK
NEW
2 □
PI N
E STREET
NEW YORK
STOCK'E2
YORK CURB
SAN FRANCISCO
S
"
mak¬
few med¬
in carefully
But these "men in
NGE
J*.;,
'.v">
BUILOINQ
ISOO.RUSS
SAN FRANCISCO
,
;
;•
.
SfOCKfcXCHAHGE
i
r,
to
develop
a
process
for
quantity manufacture Of Strep-,
CHANGE
EXCN
other scientists in other labora¬
tories,
f'.'
-
4
OFFICE: WANTED
f
N.A.S.D.
tomycin so that it will be available,
evehtUally, for the treatment of
thousands of patients.
,
member (Retailer)
preferred with a trading firm.
Box WB1129, Commercial & Fi¬
use
a
white" are working diligently and
zealously in our laboratories, as
are
1.7S
1,75
are
small quantities,
very
cases.
which
heretofore
which are distributed to
"A"
1945„_„___.
number of
So far, our researchers
Dividends
1944,___-_.*_
a
against
man,
ical scientists for
•
you
the whole story but we Can reiter¬
Private Wires • Home Office Atlanta • Phone LD-159
HAWAIIAN
Description on request
.-vj1
Box R126 Commercial & Financial Chron¬
icle,
found it!
We haven't the
ing
The late
'
,
against the destroyera of human liberty is over. In
many lands today, doves are be¬
war
ginning to fly where vultures flew
Special Memorandum Available:
before.
nancial Chronicle, 25 Park Place,
New York 8, N, Y.
United Artists Theatre Circuit
But
the
battle
of
the
scientists goes on—and the uni¬
forms of the battlers are different.
Their coats
olive drab
These
Desires to make connection
to
locate
give service and execute orders
In Over-the-Counter Securities.
preferred. Box M126, Commercial
& Financial
Chronicle, .25 Park
Place,-New York 8, N. Y.
for it—and
or
are
white instead of
blue.
men are
,
helping to win the
peace!
experience bonds
would
of Streptomycin was not
accidental. Dr. Selman A. Waks-
BROKERS OF BONDS, STOCKS, COMMODITIES
;
1.75
probably
was
covery
J
UNDERWRITERS AND DISTRIBUTORS OF
;
&
with dealer house, listed securities
and
important "accident"
occurred. But the dis¬
most
that ever
Trader Available
Fourteen years'
discovery
the
other
r:75
previ¬
cillin.1 Its
ticut National. Bank* Address
RAYON
And
wonder drug,
a ,hew
You've heard the story of Peni¬
B A NICE RS
I NVE STM ENT
Place, New York 8, N. Y.
By
there's
diseases
121, Commercial
scale pro¬
mass
ously known drugs, failed to de¬
stroy. Its name is Streptomycin,
;
or
accounting
for the
just around the corner, which suc¬
cessfully combats certain germs
Exchbnge and
Other Leading Exchanges
of
thrill Al¬
which Penicillin and other
Members New York Stock
job.
a new
The most recent
one.
must be labeled AA-1. It be¬
now;
Good position and
NEW BEDFORD
be¬
duction of Penicillin-Schenley.
2780)
bank
subsidiaries,
awaits
process
Financial Chronicle, 25 Park
[
Batt
longs in the same category with the
thrill we experienced when we saw
our "men in white" labor; heedless
of clocks or watches, to develop a
stock¬
for
our
one
U'
BC
Mr.
At Schenley Laboratories, Inc., One
good opportunity in Connec¬
Box
by
A New Life-Saver!
;
bankruptcy*
Mian, banking experience
Knowledge
address
SCHENLEY DISTILLERS CORP.
ways
;
man
de¬
!
of
!
credit
our
and
them.
By MARK MERIT
particularly since the courts, have
on page
on
hope will be of interest to our fellow
Americans. This is number 109 ofa series.
short
further
vision is doubly
(Continued
materials
we
vital
so
the wiping
stock.
This pro¬
out
result
a
NOTE —From time to time, in this space,
prevent
to
amended
mighty
a
As
there will appear an advertisement which
quentialr V
'
' - Yet hope springs eternal: God
grant that world wisdom may be
found to remove this menace and
talking to¬
are
assembled
freedom.
SCHENLEY DISTILLERS CORPORATION
months ago.
Today they seem to
almost trivial
and
inebnse-
These things
it is today.
which4 we
was
me
endan¬
gravely
were
,
•
painfully acquired over the cen¬
turies,
raw
*An
der to avoid conversion.
1941
Large' New York Stock Exfirm
never; before has man's'**Useful accumulation of knowledge, deed
man:
one
fore the Society for the Advance¬
ment of Management, New York
City, Nov. 30, 1945.
(Continued on page 2782)
,
1940_r™—_$1.75„__ 1943
co-manager
change
of;
for
pendence
Bonds should not be called in or¬
necessary.
•
I
for
of the two preced¬
one
of
another,
this extraordinary experience,
have gained a special respect
of
to 40%
capitalization, be required to be
convertible into common stock.
of the recent experiences of
N
gether they
force
J
unlikely that
seems
of
have' been. waged by any one of
these United < Nations alone: to¬
as
amended
he
holders of railroads in
New
Hamper Production
Capital Investment for Reducing
Manufacturing Costs.
Scores Movement for Ex¬
cessive Wages and Says We, Like Most Other Coun¬
tries, Are Concerned With Expanded Two-Way
World Trade.
Says American Management' Has
Been Willing to Provide Better Facilities for LowerCost Production and Praises American Workers'
It
international
assets
liabilities
the
Bill,
Wheeler
that all bonds above 33%
420 Runs
de¬
sold
rises, the bonds would be convert¬
Write
if We Follow Practices That
and Incentives to
•,V..'
on
the
inter-dependence of
each other, the degree
borne in on all of us froni day
tO; day. Successful war could not
Britain
as
The
which the
to
in 1929. and
S.
a
May Find Ourselves in Same Position
in
time
nations-
rare
Western
on a scale up, so as not to
be self-defeating. When the stock
cific
Foreign Supplies, Calls Attention to Lack of Co¬
operation in International Field to Facilitate Trade
r
and Alleviate Dangerous Uncertainties. Warns That
that
field.
116 to 125 between 1927
as
1930.
into
Our
Member, Combined Raw Material; Board
Member,.,Combined Production and Resources,Board
sold, as high as 115 and 124 in 1928
1929.
Rock Island sold as
should,
under S. 1253,
The
been
peared. Frisco sold as high as 102
and 135 in the years from 1925 to
A11
junior
S.
Mr., Batt in Pointing Out Our Present and Future Raw Materials Posi¬
or
the
ization.
have
:
clared worthless, sold above par
100. At these levels, convert¬
ible
bonds
would
have
disap¬
ceed, say 33 to
40%
which
Stocks
ex¬
'
in the courts.
now
railroad bonds
must
U.
tion and Our Need for
Wo
privilege
of national
emergency to work in the area of
materials and production for de- ■=
fense and war> - and for much of
my
this'period
through
ing speakers will not have made some reference
yidends, and be attractive to the'
to that cataclysmic contribution of technology to
investor and be a medium to fi-"
world politics and economics-—the atomic bomb.
nance
expansion and improve¬
It does not seem to me to be an overstatement
,
ments.
If this method had been
that never before in the history of mankind has
> W. L. Batt
^
in effect in-the 1920s, reorganiza¬
technology
brought
forth
so dramatic a challenge to the intelligence
tion, bankruptcy and receivership
old device that
in
,
U; S. Deputy
;
reform.
Convertible
bonds
I.
than passing significance.
more
| It hastheen
.
By WILLIAM L. BATT*
of such finan¬
helpfuJ. The convertible bend should be the keystone
Supplies
again permiLmen to consider, in.;
C'pmparative safety at! least, sub¬
jects like these assigned to* me
that have been; and may still be,
of
the future could be Technical Skill.
to avoid railroad bankruptcy in
measure
2705
.."*U ;*
\
Consulting 'Economist Suggests Amendments to Provide That Junior
Bonds Be Convertible,ThusReducing in Prosperous Years ilie Percent¬
age of Debt to Capitalization.
He Urges That Present Railroad Reor¬
ganizations Be Included Under the Bill, Because So-Called Worthies;
Stocks Have Been Showing Earnings Up to $40 per Share; After Pay¬
ing Excess Profits Taxes as High as $130 per Share. Notes That ICC
Now Admits That It Js "Deeply Sympathetic With Attempts to Allow
Present Stockholders a Continuing Interest," and That a Vederal Court
Cites "Injustice to Stockholders and; Need for Corrective Legislation."
He Approves Commissioner Miller^Suggestion to Give Old Stockholders
Deferred Stock kor Dption Warrants. >Mr.. Friedman Recommends Either
Amending the Wheeler Bill to Include Features of the Hobbs Bill, or
Else Passing the Hobbs Bill First, to Prevent Wiping Out Stocks Show¬
ing High Earnings.
"
H
CHRONICLE
Raw Material
Future
on
;
A
FliftlNCIAL
THE COMMERCIAL &
Number 4444
*
Box M
127, Commercial & Fi¬
nancial Chronicle, 25 ParkPlace,
New York 8, N. Y.
Ward
Teletype:
Nvf 1-1287■\1-1288
Est.
Members
N.
Y.
&
Co.
FREE —Send
Security Dealers Ass'n
120 BROADWAY, NEW YORK 5
a
postcard
or
letter
to
marx merit of schenley distillers
1926
3dJ Fifth Ave+N. Y. I, N, Yl,
and you will receive a booklet contain¬
ing reprints of earlier articles on various
subjects in this series.
corp.,
Telephone:
RE. 2-8700
'
/
Roi
Le
Company
.ommon' stock
Bunte Bros.
;
Recommendations and Literatu
| Central Electric & Gas
It is understood that
•
the firms mentioned will he pleased
Simplicity
Railways,
Maher
&Hulsebosch r
Announcement 'is
C. L. Schmidt & Co.
Established
>
1922
Street
120 South La Salle
■
CHICAGO
'
3
Tele. CG 271
'Tel. Randolph 6960
with offices at 62
National Association
of Securities Dealers
Member,
Middle West
—
Pacific Coast
V;'-For
UNDERWRITERS
MARKET
DISTRIBUTION
SECONDARY
I
.
reporting
on
the outlook for
Alaska Air Lines, Inc.; All Amer¬
ican Aviation, Inc.; American Ex¬
port
Airlines,
Inc.;
Chicago &
Southern Air Lines, Inc.; Contin¬
ental Air Lines, Inc.; Delta Air
135 La Salle St.
CG 99
State 6502
N
Y.
"
'
Bank
and
Stocks—
figures—White & Com¬
Mississippi Valley Trust
Building, St. Louis 2, Mo.
Consolidated
England
Company—An¬
alysis of company established ih
1862 on which there are arrears
PosT
Office
Mass.
v;,'fv;
.Also
.
The
Chicago 3, ill,
Equipment Com¬
thee outlook—
Troster', Currie" & Summers, 74
Trinity Place, New York 6, N. Y.
pany—Report
Street, Chicago 4; 111.;
Consolidated Rock Products Co.
—Special report—Maxwell, Mar¬
shall
& Co.,' 647
South Spring
Street, Los Angeles 14, Calif/ '
]
are
late memoranda on:
Alabama
American
Hardware; Douglas Shoe; TACA
Airways;
American
Window
Glass;
Michigan
Chemical;
par
Mills,
Lawrence
Highlights of current situation—
Amott, Baker &
Co., Inc.. '150
Broadway, New York 7, N. Y.
Exchanges
Chicago Board of Trade '
York
6, N.
1- New
study of leverage possibilities—
Dayton Haigney &. Co., 75 Federal
Street/ Boston .10, Mass.
and
ford Paper; United Artists Thea-
~
CHICAGO 4
SO. LA SALLE ST.,
Wall
York Office
New
l
George W. Bdtg Corp.
""The
Corp./ Com.
•Burton-Dixie
Central
Wire, Com.
Steel &
Com.
Globe Steel Tubes Co.,
•Wells-Gardner & Co., Com.
New
Established
^
Members
1916
Principal Stock Exchanges
Trade
Chicago Board of
10 So. La Salle St., Chicago 3
Teletype CG 405
Tel. Franklin 6622
Indianapolis, Ind.
Rockford,
Cleveland, Ohio
Co.
—
report and comment—Knee-
of Trade Build¬
ing, Chicago 4, 111.
Paul H.Davis & Go.
Car
Bantam
American
land & Co., Board
Request.
•Prospectus Available on
-
North America,
With reviews and analyses of spe¬
cific situations appearing to offer
exceptional
investment
and/or
profit possibilities — Bennett,
Spanier & Co., Inc.v 105 S. La
Salle Street, Chicago 3, 111.
* nancial markets of
Wall St.
1
-
in the fi¬
gest of current events
Randolph 5688-—CG 972
i
Commentator—Di¬
Street
•
.
Recent
—
report — Mercier, McDowell
&
Dolphyn, Buhl Building, Detroit
Northern Engifteering.Works—
& Co., 40
Wall Street, New York 5, N. Y7
Also
available; a
report
Sheller Manufacturing Corp.
f
Co., 231 South La Salle
Street, Chicago 4, 111.
•
>
Corporation
Four
Drive
Wheel
Auto
;
Company
-
120
Howard Aircraft
r
CHICAGO
■
Y.
Signal—Circular—J.
Co., 40 Exchange
Place, New York 5, N. Y. .
Also available are circulars on
F.
COMSTOCK & Co.
231 So. La Salle St.
Broadway, New York 5, N.
Automatic
f
Corporation
;}:MS
4
Reilly
Products,
Dri-Steam
Clyde
Por¬
celain, International Detrola, Ma¬
analysis—Caswell
&
*
-
South La Salle Street,
111.
J
,
Co.,"
120
Chicago 3
a
.
Company^*-
| Sehenlfey Distillers Corporatioi
&
Maine Railroad—cir¬
cular—Adams
&
Peck,
63
Wall
&
in¬
on
possibilities—Hpit,^ Rosf
Troster, 74 Trinity Place, New
York 6, N. Y.
/
a
/ V
/
1 ;
memorandum
.
running in the Chronicle-.
been
Mark" Merit,
to
Fifth
350
analysis
of Panama Coca-Cola.
•
Automatics
Johnson
—
low-priced
building stock—Du Pont, Homsey
Co.,
Shawmut
Bank
Building.
tive memorandum
Boston
9, Mass. '
on
r
in
care
Stokely-Van Camp, Inc.—Study
|
and structure
«Sc Co., 70
Pine Street, New York 5, N. Y.
Also
break-up values of United
Gas Improvement Corporation.
—
Penington,. Colket
Chicago
Board
of Trade
Write For
208
Utilities
SOUTH LA
CHICAGO
Telephone
4,
Company—Descriptive
Lubetkin &
Co., 41 Broad Street, New York 4,
New York 4, N. Y
Broad Street,
Randolph
Direct Private Wire to
Bell
System
CG
4068
New York
537
Wellman
reports
Engineering
on
issues
in
New
and
and
Co.;
all
Real
York
City.
practically
"
•
-x
Incorporated
CHICAGO, ILL.—Clyde H. An¬
associated with
208 South La
Salle
Street, • members of
the
Chicago Stock Exchange, it is andrews has become
Braiisford & Co.,
,
Mr.
Andrews
was
re¬
and in
executive vice
president of McGraw & Co.
previous years was
Greenfield
was
& Co. >
hurst
LakeH.BtMt0o.lo
3
H.
Rose
Minneapolis
of
the
will
Exchange,
Stock
York
New
Jj
Robert
and
members
both
Jacobson,
with
offices at 39 Broadway, New York
H.
Luke
form
Co.
&
Rose
of Dec. 7. Mr. Rose in the
principal of Luke H.
Company. Mr/ Jacobson
City,
as
past
was
Co.
&
son
•
J
-
.
Diamond, Turk & Company, 30;
Street, New York City, mem-f
of the New York Curb Ex¬
Pine
bers
W. T. Wueste-
admitted
change,
Dec. 1. Mr.%
Curb member, has/
partnership
to
a
active
individual-
an
as
1
-
*
,
Valentine Rejoins Firm
ILL.
CHICAGO,
mander
been
has
—
Com-;
Lt.
Valentine
W.
John
released
from
service
rejoined Harris, Hall &
pany,
1X1
has
and
;
Com-I
West Monroe Street, as j
Vice-President
and Director.
>;/ '
•
jlf
;
:
m
Kenyon Is Slay ton V.-P. i
ILL. — Robert
E.I
become associated
and Company, 135:
Salle Street, as Vice-¬
James Mi' Ahern, manager
&
Street,
struck
Co.,
was
by
Ahern
with
a
a
with
of the
trading department of Glore,
has
Slayton
Keriyon
James Ahem Dead
-
Teletype CG273
Pittsburgh
NYSE Firm
Be Formed;
CHICAGO,
for
Philadelphia
&
Williston
broker.
With Braiisford Co.
Mr.
Salle Street, Chicago
Telephone State 8711
New York
he was
Co. Mr.'
formerly
with
thereto
Prior
R.
J.
been
New York.
Byllesby and Company
\
the
with
;
—chv
cular—Simons. Linburn & Co., 2f
gan
So. La
having served three years
Eighth Air Force- in
Army,
Diamond, Turk Co. Admits]
Wellinan Lngineering
■
Kendall
circular—Seligman,
NORTHERN STATES POWER CO. 6 & 7 Pfds.
135
;
1Texas./-!•>
I)EE1> ROCK OIL CORP. Com.
SALLE ST.
ILLINOIS
Principles! of the firm
partner in Benjamin, Jacobs-
CHICAGO SO. SHORE & SO. BEND RR. Com.
H. M.
^
Captain / Donald Young and
Harry K. Greenfield.
M Captain Young is on terminal
leave
from
the
United - States
hube
M-3—
study of Midland
business.
are
was a
•
A
Ex¬
40
Co.,
&
Young
change Place, was formed Dec. 1,
to conduct an investment security
| Te^as Utility Company—Analy¬
sis—Rauscher, Pierce & Co., Inc..
Mercantile Bank Building, Dallas
:
Midland Realization
Opens in New York
Wuestehube,
—We Maintain Active Markets In—
Midland Utilities
Donald Young& Co.
&
*
Members
Exchange
ter & Co.
Rose
cently with Sincere & Co.
gtock
and was recently with Hun¬
years,
Luke
•nouiiced.
Chicago
o
Cdrpuration
Avenue, New York 1
Descrip¬
I SINCE 19081
Fred. W. Fairman Co.
specialized in
Mr. Maher has
mining securities for twenty-five
Distillers
N. Y.;f
TJiermatomic Carbon Co.; Red !
Rock Bottlers, and a new
Estate
Street, New York 5, N. Y.
past he was with Edward A. Purcell & Co. and F. L; Salomon &
^Brochure of articles they hav»
of current situation
Corp.—Circular
ion Park, Shatterproof Glass,
Boston
Teletype CG 257
b b ex— Recent
u
Also detailed circulars on Fash¬
jestic Radio & Television.
for Gruntal & Co. In the
manager
and
-outlook'
Earftings
&
Dearborn 1561
*
R
Also available is
Farms-^-Lhte
Hulsebosch & Co. and production
With
ISchenley
v
analysis—
also memoranda on United Light
&
Railways and Queensborough
Gas & Electric Co. 6% preferred—
New York Hanseatic Corporation,
Arden
trading department for Hunter &
Co.,
was
principal/of Dimbel,
England.
J.-:
Write
Y,
N.
on
-
C0.-4-
ysis of condition -and post-war
prospects—F. H. " Koller & Cor
Inc., Ill Broadway, New York 6
Hajoca
—Adams &
Central Coal & Coke
-
,
American Service Co.—Circular
Bowser,
on
Inc. and Midland Utilities.
>
he Was matlf
ageh'"o f t h e
:
financial Luekhurst & Co/. '
Associated with the new firm is
Analysis—W. J. Banigan & Co., 50 position—Scherck,: Richter Com¬
pany; Landreth Building, St. Louis Herbert Lax in charge of the
Broadway, New York 4, N.
Trading Dept. Mr. Lax has been
j2> Mo.
ior the last eight years with LuckFranklin
County
Coal—Anal*
teresting
111.
memoranda
Rudolph, WUrlitzer
FarrCil-Birmingham
Gro-Cord
Mich.
? on
v
—
1529 Walnut
2, Pa.
}
Buckley Brothers,
Street, Philadelpha
Also
,
Pump— Memorandum
I .'Rfeda•
pridr thereto
Hulsebosch
F,
Gerard
Donald
f
26, Mich.
-
;K American Forging and Socket—
Circular—De ; Young,
Larson &
Tornga, Grand Rapids National
Bank Building, Grand Rapids 2.
Hawkes
:
Circular-'—Amos. Treat
Purolator Prod¬
ucts.
Inc.
Street,
Wall
14
Company,
New York 5. N. Y.
partner in
&.Co.,
a
.
.
Service Co.
^Memorandum —Daniel * F. Rice
'
231
,
>
formerly
was
Co.
Co.-—Briei
Lime
England
Ox¬
Cement;
Electromaster
Co.—AnaR
ysis, for dealers only^-G.: E. Untelrbferg & Co., 61 Broadway, Nev
Radiator
National
f Nfew England Public
Inc.;
Port.
{
Hulse-
F.
Hulsebosch
on r
Industries;
American
Great
ter Circuit; and
Members Principal Stock
Iron» Co.—
Malleable
Study of outlook and speculative
possibilities for appreciation for
this company—Ward & Co., 120
Broadway, New York 5, N. Y. Also
available
Monroe AUto
'■±
Salle
sV:
r e
Ma-:
W;
bosc h.M ri
Corp.—Circulars—-
Chicago
Hicks & Price, 231 South La
issue
g
ard
1, chain of retail stores selling
popular-priced women's and chil¬
dren's apparel—Hardy & Co., 30
Broad Street, New York 4, N. Y.
ahd
Utilities
Gas
and
her and Ger¬
a
-**
n
John
g. Miller - Wohl Company,
j^ncP^circular roh this operator of
Port¬
se-;
Partners ;'a
,
t.
circulars oh
are
in-'
Canadian
i
Street.
'
and
in
domestic min-
The
available
Dayton
South La Salle
Inc.,. 135
10
9,
as
purities,; a 1 so
specializing, in
Realization, and Mid*
Utilities Common — Rgyised
bulletin—Doyle, O'Connor, & Co..
de¬
Co.;
Boston
&
Square,
Consolidated
stock of $67.50 and
Corp.
Ill.'^C^.;-
Midland
Corp
reeenl
on
Central Iron & Steel, Oregon
preferred
interesting reCent
earnings
range
per share
after taxes—ask for analysis M. C.
P.—Raymond & Co., 148 State
Street, Boston 9, Mass.
$100
5%
the
on
HICKS 6-PRICE
...
A—Bulletin
Class
Philadelphia Transportation—
1
Cenn-m
velopments—Lerner
parative
New
Street, Chicago 4,
k
o r
vestment
land
Request
on
Salle
Ready reference table giving com¬
pany,
dealers
&
.
4, 111.
cago
Company—Report—
Co., 209/South La
Magnavox
stock—Sills, Minton & Co.,
Inc., 209 South La Salle St., Chi¬
land Cement.
Insurance
Utilities Corp.
Circular
Air
Depressions
—Since 1775—Comparative chart
of price trends, national income,
federal debt, business activity, etc.
—Hannaford & Talbot, 519 Cali¬
fornia
Street,
San Francisco 4,
Consolidated Gas
\
Y
e w
City; to act
Crutteriden
mon
Business Booms and
Mfch^a^4l81
The Chicago
Mid-Contirient
Inc.;
Lines, Inc.; and Taca Airways, S.
A.-—Troster, Currie & Summers,
74
Trinity Place, New York 4,
t
j
—
Corporation; Expreso Aereo InterAmericano,
S.
A.;
Inland Air
Calif.
LOS ANGELES 14
650 S. Spring St.
CHICAGO 3
the
brokers
Chicago Railway Equipment Co.
—Analysis of high leverage Com¬
N.
Distributors
Wholesale
of
William Street,
Firebox.'
Pamphlet
Transportation
Lines,
CARTER H.C0RBREY& CO.
made
formation pf Mjaher & Hulsebosch
Ray-O-Vac .^v H;'.;;:
Air
;
Formed in New York
Inc., and Locomotive
Pattern Co.;
interested parties the following literature:
to send
of
Study
—
sound specu¬
a
purchase — First
Colony
Corporation; 70 Pine Street, NCw
York.5, N...Y.//,/ ;:V> T-V
Also available
are
studies of
Pittsburgh
Nu Enamel
as
lative
Dealer-Broker
Trading Markets in
Thursday, December 6, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
2706
For-
South
La
President.
>
':H '■
\
•.
;.
'
.
•»
La Salle
killed when he "was
135 South
taxicab on Nov. 27.
had
the firm's
number
been
associated
New York office
of
going to Chicago.
years,
prior to
Channer Back
Cant.
CHICAGO,
erick
his
W.
duties
ILL.—Capt.
Channer
with
ities Company^.
Street.
/
has
Fred-/
resumed
Channer
-
Secur¬
39 South La Salle
..
THft COMMERCIAL & FINANCIAL CHRONICLE
Volume 162 X Number 4444
Surrendered Liberties
in
.
United States
:
f-
.
"
.
;
By A. S. POUCHOT
,
*--,v 7
'
•
number
more
....
(Continued from page 2699)
than
responsible for its
.
,
.
<
Pacific . American
few who, in the first instance, were'
a
J
" ' ;
passage.
■■
.
Comptroller, Lee Rubber and Tire Corporation /
/
.
During 19474951
2707
i;!;
^
The Securities Acts
these
Corporation Financial Executive Appraise? the Prospective Costs of
Government and the Resulting Drain on the National Productivity. Pre¬
general plans.:.
When they came into
in
now
;
.
force
reminiscent
are
Investors, Inc.
of
,
'{A Leverage Trust)
led to believe that
dicts a Continuing Upward Trend in Federal Outlays Which, at 25% they were purely emergency measures to cope with the then
existing conditions. We venture to say that there are mul¬
of the Annual National Income, Cannot Be Extracted From a Flourish¬
titudes of us who never dreamed that the progressive re¬
ing Economic Body. He Cists the Probable Military Costs, the Interest
straints, which, from time to time, were being imposed upon
on the Public Debt, Unemployment Relief, Aids to Agriculture, Public
the securities industry by the Securities and Exchange Com¬
Works, Veterans' Benefits, and World Rehabilitation; Whose 1947-195J
Tptal He Estimates
as
Averaging About $34 Billion Annually.
He Like;-
mission,
were a
being
we were
permanent feature that had
to stay.
come
Memorandum
KITCHEN & CO.
135 South La Salle Street
.
We expected, and we had a right to expect, that when
J;i
Chicago 3, III.
j %ise Predicts Increases in Local Government * Expenses. . Avers That
Historically the U. S. Is Pursuing a Fiscal Course in the Classical Fashion fhe alleged emergency would be over, some controls would
P <of Those Nation? Embracing Monetary Troubles of a Severe Nature. be wholly remoyed, and others considerably relaxed.
The end of the active hostilities in the second great world war
but raise much speculation on the cost of government and
the
conse■
.
;
:
<$>The Trend of Governmental Costs
quent - taxa¬
A
<
tion
to
sup- •
The
port such cost
United
mounting
There exists
a general ex¬
pectancy of
speed:
;
i
great govern-£
mental actiy-i
ities in all
early
.
.
'
and
expressed >
are
for
the Maloney
Exchange Commission
can use
^
ARE
Galvin
accelerating
The Kings of England im¬
could; do: no less
Republic
any.
public disclosure of these interlocking activities, the
ostensibly sits in impartial'review, on occasions, of
acts may in fact l?e the acts of
as
Mfg. Corp.
K
-
(
\
American UtiL Service
-
hear Inc.
:
,
/'',•!
.well.
IN
Long Bell Lumber
former
the'former
ACTIVE
Central Soya Co.
r-
Clearing Machine
despite the incidence, of taxation
Are we being fair? AVe have but to be reminded that5
being one of the causes of conflict.
By . 1860V the cost of government when openly challenged on the "5% spread interpretation,'-'
was still less than 5% of the nay the Commission took
refuge in silence. * When it was sug¬
tional income and in 1913 ft was
gested that the Commission had a hand in the formulation
still ; only y 5.9%;a; Thej; increasg
of the recent NASD by-law amendments, again no deelarathereafterhas beenA abrupt, inr
extend-;
even
was
WE
Now the Securities and
Tele. CG 573
unabated reaching out
highlight
government in; the
has been A one / of and does use the National Association of Securities Dealers
proportions to the .nap; to pull its chestnuts out of the fire, and then, without making
posed such costs as' to take 2%' of
the then national income and the
edonesl: There
{
an
Tel. STAte 4950
States
tional income and at
present ; domains,
"
been
additional power in which the
cost of
.
off govern¬
ment.
\
Instead there has
.-
v
cannot
Request
on
United Printers & Publishers
<
HICKEY&CO.
.
^opinions
for
great .7 armed
forces, a large
army
deed.y v-yy-
at home
'
A. s. Pouchot
garri'7; .,7;
;
abroad,: compulsory general
in
and
'
sons
•???&
The .present spending 'of A$105
billions per year by the national
v
,
of all
and powerful
navy, . fortified
strategic /bases
neatly disposed about the entire
military-> conscription
;
;
ah large
youths,
v
There is an agreed inten-
world.
provide all with work or
relief, to secure, insure and assure
the common wellbeing by meastion to
.
urek and proposals . which flood
and journals in a com¬
mon vein, of governmental invo¬
cation
to
multitudinous
tasks
t magazines
involve
which
sums
of money.
7
• -
large
of
outlays
;7':
) l Yet with all this widening of the
tstream of governmental flow and
all this rise of governmental costs
there is an * expectancy of great
decline in taxation now that the
actual noise of battle has subsided.
A revenue of $15 to $22 billions
'
■
,.
is assigned as a
need for the Federal Gov<ernment; lately this has been in-
■
of
an
$120
of
20% ;of an inof $150 billions.,
r
come
national income
annual
billions
It may be said
here that gov¬
ernmental costs of
25% of the na¬
Active Trading
*
likely to
ernmental expenses are
For,
tures
for
• • •'•!'AV • Av:
'
having reached expendi¬
of $105 billions per annum
:r-';.y''yy ,■ ;•
the Federal
Government and
Stale and
nearly $10 billions for
it is most evi¬
local government,
lions
$10
$20 bil¬
that a reduction to
dent
for
national
billions
government
for
and
than
Markets
R, Hoe & Co., Inc.
i
'
Common
we
;
Mich. Steel Casting
Co.]
Common
(•'
■;
•
Interstate Aircraft
&
•
Engineering Corp.
Common
,
^Recent
~
circular
on
request
-
from the income in
over
ation
governmental
extended
an
term .of
The limits of tax¬
ten-year ..period-are
for,a
considerable
national economy
no
forecasting where all this will end.
:
;
.
decline
25%,
in
ADAMS & CO.
v
^ vMhjh the/ of
|
right to look forward to the. government's relaxing its Pa^
ticipation in business.
However, in the securities field, if
becoming like¬ anything, the grasp of government is being increased rather
the end of such than relaxed.
So much so, that each day doing business
probably not above 22% to
with
I>". 231 South La Salle Street
Chicago U, Illinois
a
Teletype CG 361
trammelling
up
1
Phone State 0101
the
FINANCIAL
The trend is ominous.
the. consequences
The securities field may
and to catch success of an uncer¬
well become
forerunner of
a
ADVERTISING
equally onerous control in ail other industries.
In All Its Branches
Yet it is to be seen that the ex¬
Safety can be purchased only by resistance.
pression of government has been
Plans Prepared—Conference Invited '
Militant leadership is the crying need of the hour.
of rising activities
and', surgihg,
costs throughout and that .for |5_
Our forefathers knew how to "stick their necks out."
Albert Frank - Guenther Law
years
it has not met; the costs
Incorporated
They opposed tyranny with courage.
They were the bene¬
through taxation.' Of late years* it
131 Cedar Street New York
6, N.Y.
factors who gave rise to the free institutions forming the
has had deficits by a great mar¬
tain quality..
...,
-
•
gin.
To
-J basis of
:y
meet
the
costs
of
the war,
a tre¬ reaching $105 billions a year, the
compressing .national
government
collected
(Continued on page 2786) 1
DEEP
l!
'
American Service Co.
-
ascribe the fact that a much more militant and
courageous fight is not being made for freedom from many
of these supernumerary controls.'
:
■V-"-.
reprisals,
our
There is
will involve
mendous exercise of
power.
less
and local
State
*
Preferred, Class A and Common
wise apparent by
decade.
.c
^A;.j
becomes
costly and more burdensome, characterized by
3ust ahead to ascertain the prob¬
Certainly, therefore', even the
able levels that may be expected lowest levels from the expressions more registration, more reports, and more questionnaires.,
and what drain upon the produc¬ of greatest hope in the prospect of Simplicity has ceased to be.
j
tivity of the country such gov¬ governmental costs come ..close to
v
entail.
^
•
CG 1234-5
...
Direct ipir$ to New York
the present pro¬
; '■ ; The
most brazen invasion of free enterprise made to
ductivity of men, is above the
margin which can be extracted date was the recent NASD "amendments,.authorizing by¬
from the economic body and still
laws which would control "profits, commissions, and other
leave the body to flourish. * For it
is dubious if this point of assured Charges" and which require registration of salesmen, traders,
well-being will permit much above etc., etc.v::-v>:';, v:5^,;r;'/,,:'
15% to 18% being drained away
At the rate that the fetters are being applied, there is
tional income, in
costs
$25
Randolph 8800
To the reluctance to "stick one's neck out," to fear of
and
30. to 40 years.
.'y- V;"
It is thus most,fitting and inter¬
esting to appraise the prospective
"costs of government in the years
Field Bldg., Chicago 3
1 We have the strongest feeling that a legislative investi*
gation of the coeval activities of both these regulatory bodies
would make it plain that this persistent Silence where there
is a duty to speak, is caused by machinations which are pur¬
come pf $165 billions;
;
posely being screened from public view.
i
' - : ?
With
a f return yto vipeaceV and
hoped for normal spending of $20
;
The occasions have been numerous upon which we have
billions by the national govern¬
described the piece-meal annihilation of trade custom and
ment and, say, $10 billions' by
other government, the, total cost usage through so-called rule making powers, despite the fact
Of $30 billions would be some 25 %
that these regulatory bodies are not authorized to legislate,
proper
billions.
|
government and above $9 billions
by the State and local governments
is some 70 % of < the national inr
for normal years
; creased in some quarters to
tion of the facts could be obtained from the Commission.
fame.
-
.
.
*
a
tyranny presently presiding over the destinies
.
Philadelphia San Francisco
of dealers in securities.
Their liberties continue to fade.
"l
r
ROCK OIL
Telephone COrtlandt 7-^060
Boston Chicago
We
are
CHICAGO SOUTH SHORE & SOUTH BEND
pleased to
announce
Macfadden Publications
that
Gisholt Machine
LESTER B
FEDERAL WATER & GAS
MeELHINEY
All Wisconsin Issues
has
BOBBINS & MYERS
joined
our
organization,
I
effective December 1.
HOLLEY, DAYTON & GERNON
DOYLE, O'CONNOR & CO.
Member—Chicago
105 So.
INCORPORATED
^
135 SOUTH LA SALLE STREET
CHICAGO 3, ILLINOIS
Telephone: Dearborn 6161
rt
PHON£S—-Paly 5392
Teletype: CG 1200
CG
memvefi Ghiiago-SiOCK Exchange
225 EAST MASON
ST.
Chicago: State
MILWAUKEE' f2), WIS.
0933
Teletype MI
Stock Exchange
La Salle St., Chicago 3, 111.
Central 0780
262
Offices in Wisconsin
|
488
^
Eau Clair.
-
Fond du Lac
Madison
-
-
LaCrosse
Wausau
FINANCIAL CHRONICLE
THE COMMERCIAL &
2708
'
-'
•
.
Reda
Bowser, Inc.
Memos'
Request'
on
aries
: >
in favor
exchange certain portfolio securities for outstanding
U.G.I, common. Preliminary discussions have taken place with the
staff of the SEC, with whom the plan will later be filed.
As presently contemplated, the offer will consist of a "bundle"
made up of U.G.I.'s holdings of American Water Works & Electric
Co.
common,
Commonwealth
about
$150,000,000 per year.
Southern common, Niagara Hud¬ of
son
Power second preferred and Operations for the current year
common
and Public Service of are expected to gross about $75,Terminatioon
of
war
New Jersey common." The plan 000,000.
factors
supersedes a less comprehensive contracts, > reconversion
of
to
plan
a
<
BUCKLEY BROTHERS
Los
Stock Exchanges
Angeles
Philadelphia 2
Walnut Street,
1529
and
York, Philadelphia
Members New
Los Angeles
Hagerstown, Md.
Telephone—WHitehall 3-7253
"'
New York
Pittsburgh, Pa.
*
N. Y.
between
Private Wire System
...
Los Angeles
Philadelphia, New York and
Water
Philadelphia Transportation Co.
'
shares
Pfd. & Common
Niagara
.preferred, 10
H.N.NASII&CO.
1421
Phila.
-Locust
Chestnut Street,
Philadelphia 2
Phone
New York Phone
HAnover 2-2280
1477
:
•'
.
.v
be
United
Paid
Gas
in
received
Federal. Water & Gas
"
'
Common
'.
Iowa So. Utilities
Common
•.
■
the
if
of con- '
phia
.
;
v
.
V
-
-
•
way
minimum
,
30,
1946.
Orders accepted
43%
CERSTLEY, SUNSTEIN & CO.
[ | 213 So. Broad St., Philadelphia 7,. Pa. ..
New
York
Phone
"Bell System Tel.
PHLA 591
.
WHitehall 4-2300
Co.
Coal
:||
largest
coal.'-.'
:p,
board
■
.
A.
Oliver, Chairman of the fi¬
committee; James B. Mor¬
ings of Atlantic City Electric Co.
common
stock will also be sold.
Traffic^
SOLD
—
{
QUOTED
WM.W.F0GARTYSC0.
Established
1919
'
.
Lafayette Building
PHILADELPHIA
elected:
The
First Vice-President; George
W. Kratz, Vice-President, and C.
E. Beachley, Secretary and Treas-j
^
6, PA.
r-'
;;
.
The company owns
and operates
43 rpines .in Pennsylvania, West
Virginia and Kentucky with ag¬
gregate
in
billion
of
one
and
Current
tons.
the
at
estimated to be
reserves
excess
is
Teletype PH 240
Lombard 6400
officers
Other
urer.
—
George, H.
row,
Pemtrerton Coal & Coke Co.
BOUGHT
C.
nance
Corp.
Jefferson Coal Co.
Penn
K.
is
Robert
rate
a
quarter
production
of
20,000,000 tons
annually. An additional 6,000,000
tons is produced by lessees. There
16,000
are
employes.
Capital structure consists of an
issue
of
$20,000,000
authorized
Dealer
Inquiries Invited
ieb.
Philadelphia Co. common
Botany Worsted Mills pfd. & A
Empire Steel Corp. com.
;
Pittsburgh Railways Co.
John Irving
Shoe common
3l/2S, 1965, of which about
$14,500,000 will be issued in ex¬
change for stocks of the old com¬
panies. Stock consists of a single
class of common, par $1. Of the
2,320,000 shares authorized,'..1,932,000
will
be
presently out¬
standing.
*
- ■
'• :
Warner Co. common
Wawaset
Edward
,
G.
Budd
Manufacturing
Company
H. M.
Byllesbv & Company
PHILADELPHIA OFFICE
Phila. 2
f
Stock Exchange Bldg.
Tele. PH 73
Phone Rittenhouse 3717
holding
Fortified with
of
a
approximately
unfilled
;
current
backlog
$108,000,000
in
ing forward to
an
it is look¬
annual business
-
will
be
I'
i
•■■■
'
*
.
*
j'/
*
'
power output as the result of
3-union jurisdictional row. The
dispute involves an independent
union, the Utility Workers Union
(CIO) and the United Mine Work¬
ers.
The company states that it
cannot negotiate with any union
qualified bargaining agent
is designated. The NLRB has or¬
until
a
dered
an
designated.
eight
Judge
dered
bondholders
Trust
vote
on
during -the^
&
a
Common Stock
stock dividend.
j
;
Bought—Sold—Quoted
Penny packer
1528
New
Walnut St.,
Philadelphia 2
Boston
York
San
Francisco
Chicago
was;
':£i'
'■
;
PHILADELPHIA,
PA.
Street,
S. Let-
C.
Dick
with
A.
of
which
associated
Walnut
1420
formerly
was
McAllister
T.
Mr.
Letford
Co., 213 South Broad
which
',
■
an
fropi
returned
rejoin Gerstiey,
.
he ; is
firm
" V».»-y ^
Seligman Lubetkin Co.
also
Adds»Two to Staff
;
Major Boenning Returns
PHILADELPHIA,
Henry Boenning^
41
PA. —Major
|
of the
son
Broad
Street, New York City,
announce
that Irving J. Silverherz
and
late
joined
leased from the
Silverherz
turned
&
his
to
Army arid has
duties
at
re¬
bers
of
the
Philadelphia
in the
doing
Mr.
trading
and
the
v'":h;
armed forces.
from
V?-
;
Philadelphia Transportation Company
Consolidated 3-6s due 2039
Current Market Yields Approximately .6.25%
V
Railways
system with particular refer¬
Philadelphia
titioning
relationship
?
5% PARTICIPATING PREFERRED ($20.00 Par)
with
Current Market Yields approximately
The pe¬
holders main¬
6.90%
;
Company.
security
COMMON
(No Par)
CURRENT DIVIDEND 80 CENTS
Market Yields Approximately
.
Registration
a
■
'
New
Issueto Refund
Bonds will
$8,347,000 Par Value of Underlying
materially reduce interest charges.
Atlantic Ice Mfg. Co.
1945 C/Ds
;
Atlantic Ice Mfg.
of
8.00%
"
■
'
Circular on Request
Co.;
Preferred
STROUD & COMPANY
Allan N.
Young & Co.
Lewis Tower Bidg., 15th & Locust Sts.
Philadelphia 2, Pa.
PENnypacker 1750
1420 Wclnut Street,
Tel. Pennypaeker 1737
123
N.Y. Phone REctor 2-0037
.
BROAD
STREET
PHILADELPHIA, PENNA.
Philadelphia 2
Bell System Teletype
SO.
'
Allentown
Pittsburgh
PH 205
———-
HllililMI
Reading
is
statistical department. Both
jusf been discharged
have
Stock
'/X -V/,'
organization.
research work. Mr. Zuckerman
Boenning
Co., 1606 Walnut Street, mem¬
Exchange.
their
is
have
Zuckerman
Jerome
Henry D. Boenning, has been re¬
upon
its
a
Seligman, Lubetkin & Co., Inc.,
the petition
of
New
York
bondholders,
Nelson MeVicar has or¬
an
examination
into the
to
?
Jj.
•'
"'> -I ' *** 1
j
Co.,
was
cashier.
as
has
-
Co.,
Street. Mr, Baier
officer
of
member.
ford have become connected with
Lewis
&
Sunstein
G.
—
2d,
the U. S. Army to
Willi Lewis C. Dick Co.:
Clarke Baier and Richard
PHILADELPHIA, PA.—William
Gerstiey,
affairs of the Pittsburgh
ence
H.
W.
with
v;'" '
Rejoins Gerstiey, Sunstein
LS»!§ C. HICK 80.
,
0100
\
Incorporated
E. H. Rollins & Sons
Incorporated
the
on
•
Baler and tetford Are
UNLISTED
SECURITIES
Street
.
now
shall be
.
..
1st 6s Feb.
-
formerly
& Co.
Bell
approved, directors will declare
10%
is
Co;, 225 South 15th Street, Mr.
Willis
ital shares from 181,500 to 199,650.
If
from; the
,
war,
trading desk for All&n N. Young
&
Bank
Young
PHILADELPHIA^ PA.—George
increase in cap¬
an
de¬
;v;Or:
•
Co., Philadelphia, for Dec.
12 to
Building,
trading
•
Willis,absent
National
Bank
the
of
manager
For Allan IV.
"
;
Recent
$1.00 Preference
Paine,
will
plus
...
Retail Distributors
joined
partment.
.
•'
,
has
National
delphia
as
bonds and four shares
:
•' >'
new
common.
Current
Phila. Electric Co.
O'Connor
J.
j
election within 60 days
to determine which union
so
to
dissolve,
reorganization,
Tradesmen's
the Pennsylvania Power &
Light Co. face a serious shutdow»
of
PHILADELPHIA, PA.—William
has
by
a
its
common
and
I
Paine, Webber Firm
that
A special stockholders' meeting
been called by directors Of
-
Twenty-eight eastern and cen¬
tral Pennsylvania counties served
Co.
orders, Edward G. Budd
Co. management states
company
permitted to retain its so-called
central properties which stretch
from
West
Virginia to Indiana
and Michigan, but which are phy¬
sically interconnected.
Acting
Securities
is
expected to be made available to
the
public through distribution
following competitive bidding ih
accordance with the parent com¬
per¬
directors
President
and
Love.
;
of
Electric Co.,
&
pany's divestment plan.
;
i
American Gas & Electric's holdr
Hill
DeLong Hook & Eye Co.
:
was
Gas
by
owned
wholly
now
American
The Company's
Chairman
by
stock,
<<■'
•
Formal,- organization
15-man
Jamison Coal & Coke Co.
'
.^y - -•••/.
$116.50. cash
receive-in*
•
Co.. common
Electric
Scranton
bituminous
of
fected last week.
headed
Beaver Coal
to
greater than for the entire year
nation's
the
becomes
producer
expected
distribute
Judge-Kirkpatrick to pay an ad¬
ditional
$11.50
on
each
$1,000
principal of its $2,627,000 first
mortgage bonds. This will bring
of
.
,
is
will
W. J. O'Connor With
early date.
an
& Western Rail¬
has been directed by Federal
$300 in
1941; in which Philco did
a
and working capital of
peak civilian business of $77,-1
about
$29,000,000,
the
newly ".073,636.
merged Pittsburgh Consolidation
f
"k
and
Philadelphia
receivers,
000,000
Common
cen-;
Webber, Jackson & Curtis, Phila¬
j*efrigera-|
to
it
on,
its stockholders
President
themselves
limit
Pittsburgh Consolidation Coal Co.
With assets in excess of $100,-
and
gravel,
lime
holdings of Warner
-
for the first six months are
Midland Utilities
Later
Wawaset
1
ThomasU-: A.
-to -
Vice
phonographs,
radio
June
:
sand,
concrete,
ably be retired at
quantities required and to take;
orders for delivery only up to
is consummated.
Philadel¬
a
producing
,
tors, freezers and air condition¬
ers.
Distributors were asked to
and
when
50% of the
stock of
over
Company,
distributing
Phileo Corp.-'
PHILADELPHIA, PA. — Mont¬
Scott &vCo., 123 South
Broad
Street,' members of the
New York and Philadelphia Stock
Exchanges, will admit Gordon A.
Hardwick to partnership in the
firm as of Jan. 1.,
"
v
O r
gomery,
Securities
common
company
tral-mix
the 1946 line of radio
in¬
Improvement
exchange
plan
''
1 Warner
in
charge of sales, Philco Corp.
has orders of $110,000,000
for
tends to retire the common shares
;
outstanding
has actively en¬
designings and
sleeping cars, or¬
To Admit G. A. Hardwick
to
for,
holdings
Wawaset
of
According
adjustment
their
slightly
owns
Montgomery, Scott Co.
holders
% of Wawaset Securities
common.
is also in progress.
Kennally,
market
material
any
summation, a cash
may be provided.
Inland Gas
.
U
of the "bundle" ap¬
market price
divergence at the time
v; .1st GYzs 60%
•
.
plan of in- r
a
limestone products. The balance
cars
associated
Sons, Incor¬
t'A
of Wawaset preferred will prob¬
senger
been
porated, in New York and Phila¬
delphia.
;
;
be
preferred stock have agreed
the
of 402
has
years
'•|"V
simplification,
^exchange
•
with
Wallingford for the past twentyone
the
railroad pas¬
the
present,
At
Jersey.
there
into
Construction
proximates the market price of
ten-shares
of U.G.I. Should
Teletype PH 257
company
I
of
pursuance
of 96.7
share Public Service of
one
New
In
ternal
production
cars' and
.
to
are
association
them of Charles L. Wallingford in
their
Trading Department,; Mr.
with E. H. Rollins &
ders -'for 24 of which are in hand.
..
and
as are
passenger
manufacture
Hudson common
shares Niagara
The
,
tered
share
one
Hudson Power 2d
Rights
&
one
Southern,
Insurance Co. of North America
railroad
of
debtor
the
announce
any
participate".in
to
PHILADELPHIA, PA.—W. H.
& Co., 1500 Walnut Street;
Bell
Securities
the
*
Ford
truck trailer bodies.
share American
Works
&
Electric,
12
Commonwealth &
of
expanding,
are
in multiplies of ten *.
and
Motors
Wallingford at
W. H. Bell & Co.
examination of witnesses.
for manufacturers other
General
than
that
Exchange Commission and
permitted
restrict
to
ordered
creditors of the
However, shipments
automobile
body
assemblies
of
for
a < corresponding
number of "bundles," each com¬
prised
tended
have
and parts
shares,
Stocks
Stock
may
common
their stock,
Bank & Insurance
U.G.I,
holders of
exchange
It is proposed that
U.G.I,
&
1945 results.
parent, United Corp.
and its
Philadelphia
dustry
of
exchange
between
only
securities
3-6s 2039,
last summer
program considered
which involved an
C. L.
are,
been
in the automobile in¬
and strikes
that the obligations of Pitts¬
Railways and:.;its subsidi¬
in fact, the obligations
of Philadelphia Company which
owns
all of Pittsburgh Railways
stock and a majority of the out¬
standing securities.
They point
out that if the Philadelphia Com¬
pany would subordinate its hold¬
ings, a satisfactory reorganization
could be speedily effected. It has
;
Gas Improvement Co. have voted
of United
Directors
Thursday, December 6,, 1945
burgh
Portfolio Securities
U. G. I. to Exchange
Pump Company
'
.
tain
Pennsylvania Brevities
Utilities
Midland
\
120 BROADWAY
NEW YORK, N. Y.
Scrantori
Williamsport
■'
3
f
Volume
162
Number 4444
THE COMMERCIAL & FINANCIAL CHRONICLE
>
2709
'
"
hV-j .i\if ,7
HON, LYLE H. BOREN*
By
"///v//"7'■/■>■
Few in
of
U. S. Congressman from Oklahoma
Congressman Boren, Who Is Chairman of the House Sub-Committee
the
number and small
in size
constitutes
on Interstate
As a matter of fact, the list shows only
Foreign Commerce, States That a Study Is Being Made to Revise ;
the Holding Company Act.
Predicts No Radical Changes, and Says awaiting the market, with the in-'«>
itial
Contemplates
Wj^h Caution and Restrained by Judicious
operation to develop on Dec.
when
officials
of
Bedford
10,
Improvement, "But Only to the School District will open bids on
Care, Studious Research, Caution and Wisdom $118,000 bonds. Prospective pur¬
chasers
'
/// Today on LaSalle Street in ^Chicago the times are a far cry from
the LaSalle Street of the old Board of Trade in the era of "Old
the
and
:
the
pic¬
turesque
E d
and
Partridge, and
Everingham. -
:
tirely 7 gone.
Under restric¬
tion and regu¬
lation many of
the old anuses
remain
simply
wearing new
The
o,f
with
us"
still,
but " the
old
have
ones
suc¬
ceeded them.
fers
They differ no more
milady's gown of 1882 dif¬
from her
In
tne
old
Mobilier
beach
suit
it
clays
of
1945.
Credit
was
and
Teapot Dome. To¬
it is "Swindle Incorporated"
day
and the
"nonprofit" corporation,
America
i
t
problems
has
approached
always with
its
Commerce
the
I
/
Holding
Company
to
and
meet
solve them.
not
on
founded
we
this then
Gov¬
a
from
the
i
:
governed,
The
,
t--
first
consent
u
,
three
of
the
I
,
words
the
ican philosophy were — "We the
people"—and the public interest
been the
ever
yardstick* that
both defines and limits each
and
boundary
of
'
Government.'
Out of
of
the
the
i\i.'
investors
as
have
the
meet
v,.
area
act
of
.
particular problems
public
that
Acts
every
have
many acts of Government.
grown
been
tide
of
altered
to
We
are
fitting and
It is to one of these, one of the
great reform bills of the decade of
the*"30s," that I address myself.
I 'speak of the Holding Company
Act.
It was, and is a sound and
wholesome law.: Experience has
it to be one of the most
salutary of the reform era.
proven
I
claim
fundamental
The
•
not
reviewed
been
it
to
aspects
rate
or
first
10
l
"
%
The
'.j
I
a
be., in
its
wise5 and
McAllister has
T.
with
ated
.
by ; Congressman
before
by
voters
that
be
the
Chicago,
111.,
Investors
-Nov.
1945.
29,
the
been
This
I
the
the /city's
tax
sewer
and
proposed
Controller
will
Moncure Biddle & Co.
PHILADELPHIA
sewage
The
Bellevue Strafford
court
authority
to
business
es¬
on
Benjamin Franklin Hotel 5s 1960
the
in
Pennsyl¬
householders
7
Phila.
Phila.
in
:
existing
debts
,
Transportation Pfd.
Transportation 3-6$ 2039
Suburban
Phila.
th^ program, and,
sewer
■
,
to
serve
C.
give
Co.
K.
Members
*
city
Philadelphia Stock Exchange
Packard Bldg., Philadelphia 2
White,
the
Water
Pfd. & Com.
are
limits./ 7/
Robert
5% 1935
Pittsburgh Hotels 5s 1967
a
Teletype
•"
PH 375
v
N. Y. Phone
i
REctor 2-0037
-
constitutional borrowing ca¬
pacity of about $50,000,000.
v
.
Trading Markets in
Southern Advance
VIN CO
Bag & Paper Co.
coun¬
Commonwealth
are
Common
will not
is
|
in
out that
<6co.
pointed
of the bonds
none
until
the
passes
abling act. As the lawmakers
"
appropriate
boenning & co.
%. jlmjdcv & (So.
Philadelphia
Stock
1606 Walnut
Exchange
!
Stock
Legislature
i
an?
Members
can
r
Albert
Exchange Bid*., Phila.
2,
Pa.
'
Private
Phone
N.
A
en-
A
Y.
Bell
Telephone HAnover
System Teletype
2-4552
PH
220
1
•"
TRANSPORTATION
PHILADELPHIA
TRANSPORTATION
3-6s
2039
//■*
-
-
I
COrtlandt
;
i
•-
Complete Investment /
STOCK
PREFERRED
FEDERAL
WATER
GAS
&
DELAWARE POWER
&
COMMON
an(l
•77Y'/
STOCK
COMPANY COMMON STOCK
LIGHT
7-1202
.A:
4%%' PREFERRED STOCK
S. BECK SHOE COMPANY
PH 30
N. Y. C.
to
'
PHILADELPHIA
A.
St., Philadelphia 3
Pennypacker 8200
-1
associ¬
77
Stock
Established 189S
Dii
report
a
Edward Martin, who
-
Common
time.
some
evident
j Just received from Governor
was. formerly head of
McAllister Co./;which has
dissolved.
1.25
"approved
throughout, the
voters' decision for
McAllister
T.
To Net
'
Interest
to follow through on the
able
Co.,
1411
Chestnut Street, members of the
New York Stock Exchange. Mr,
A.
issues
in
&
was
hundreds
of
114.468
of
the
&
-
this
Price:
The ruling, according to City
;
ac¬
program
a
Actually,
works.
•
become
Dixon
for
January 1, 1968/54
Coupon Form
/
,,
self-supporting and exempt from
issue
an
of
constitutional debt
largest single authorization of
Wilh Dhoti Co.
—
in'approving
try/Howfever, the indications
A.iT. McAllister Is
PHILADELPHIA, PA.
a
and
the
be sold
J
the
of
coqrse,
.v,;
trading
a
effect/ held that the
not
are
an
.
;
2785)
of
$50,000,000
public
re¬
•-*v. • H...: •
on page
in
^
been
formidable
order to finance
dispose
we
weeks,
being
$42,000,000
a
tablishments
$1,300,000 and $3,000,-
result^,
Philadelphia
Pennsyl¬
recent
Supreme Court.
upheld
com¬
respectively. 7
for
boost
In referring to the November
of
We have undertaken a task that
7' (Continued
the Nov. 6 elections to
City of
general
program re¬
vania
dealers' shelves.
aforementioned
the
disposal construction
tion of the electorate of the Com¬
properly frequently revised in
the light of experience "and' to
meet: tfie public interest, /Thusand only thus, can we find the
path of justice through all the
winding ways of error, malfeas¬
deceit..,
two
on
$100,000
:
city's long-developed plans
levy
monwealth
are
ance, or
appearance
such potential
of
A'i-v=-
V
',
ent slim stock
unmindful,
re¬
/
PG 498
some
participated
have
f
to undertake
Abington
bond election
of Congress
the major acts
All
a
years.7
they
so
decision
;
mak¬
was
have
a
as
ijc
in
ceived
000,
its existence,The
Commerce Act
strong
favorite.
|
the fore¬
from
" Teletype
'
'
the advance and in the past week
instance, the
is
limited
to
seen
market
of issues of
viewed and revised 17 times in its
PHILADELPHIA
ELECTRIC
COMPANY
COMMON
PHILADELPHIA
ELECTRIC
COMPANY
$1
Brokerage Services
7
/
STOCK
Rakestraw, Betz & Co.
PREFERENCE STOCK
■
Members
■
New York Stock Exchange
v. F. Valdes Dead A ?
Victorio
at
address
League,
this
In
*
market
the
adelphias
$239,000
District
?
'
.
recent
the
at
revised in
nor
of
Telephone
outstanding feature. City of Phil-
may be pointed out,
important candidates by vir¬
tue of authority granted by voters
Holding Company Act has
the 10 years of
•times and circumstances that ever
change" and alter; experience of
Boren
of
School
*
•
are
sponsibility to do this.'
sound, I do not hold it to be a per¬
fect
instrument,.
A
product of
7' *An
form
a
■
■
tionally
munities, it
may
proper
our
Court 2380
Stock Exchange
BIdg.—-Pittsburgh 19, Pa,
shortsighted bureauwhich necessitated a
Township
and
Allentown
School "-District,
the chances are that little, if any
addition, will be made to the pres¬
circumstances,
flight of progress, and the de¬
crepitude of oboslescence.
■'
*
While
the
It will be
The
studious review of the Act.
a
possible,
event
with price enhancement
VA %, while the tenure of the
in
the
:
in
prospects
satisfied with the
better
Interstate
of
Charter that constitutes the Amer¬
has
be
Alt is
•
simple and evident truth that all
just powers of Government are
derived
ing
world,
new
recognized and announced the
we
i
We
Act, and
Union Tr^
vania municipals has been excep¬
Dec.
on
,1:
trend,
trans¬
going that, barring the
hunt for faults
a
Act after this study.
in
g
examining it carefully, judi¬
ciously, without preconception or
prejudice, j
7,." / /,' '1' / V
are
the
In/'keeping/with
on
1
final
and
/
••V'A.
presently in the offing
coupon,
\
are
We
Members Pittsburgh
;
1970.
to
,
fourth
bonds.
;
Act—to
of the realities of experience.
even
ernment
1946
will reach the market
17,
study it in the light of its opera¬
examine it in the light
enough
in America
-
of
emergency
ll^s
will be taken
t
Scranton
decided to review
to be found with the
first
The
action
tions—to
realiza¬
a
has
in
course,
product
Nether
exceeding
from
bids
15
1956 incl.
Congress in the form of the
Exchange Commission
subcommittee of the great Com¬
mittee on Interstate and Foreign
tion that there is heart and brain
When
of
of
$22,000 Plymouth Township not
exceeding 3V2%, due from 1946 to
Securities
up-to-date
than
District
mature
On Dec.
The
r
Lyle H. Boren
1
.
C. S. McKEE & COMPANY
until after that date.
Earlier action woufcl be
incL
loan is from 1946 to 1955 incl,
Company Act
Holding
"
this
to
seem
/ wealth
mature
1963
to
School:
and to
/
The
'
convene
1947,
being made by the Common-
cou¬
a
'
swindles are out of style and mod¬
ern
1946
not
w rcn
g; a n d
scandal
are
,
TRADING MARKETS
Township wil award, special session of the
legislature,
a loan of
$315,000, with the bonds the Governor
said.//■•i//////;///
to be sold as
hold
To
name
Providence
that,.any-product,.of
minds,- however great
those
minds
might be, has at¬
tained
a
permanent perfection,
free of fault or frailty, is an un¬
tenable position.
I am sure the
Securities Exchange Commission
would not hold itself, like Ceasar's
wife, in every act above reproach,
nor make a finding of perfection
Cor itself in all of its interpreta¬
tions—if so, I herewith file a for¬
mal disclaimer to such a finding..
en¬
raiment.
elements
*
,
/
some
\
human
of the days of
laissez
faire
not
elements of weakness
perhaps
error.
f The' abuses
are
the
necessity tests and trys it and dis¬
covers some
will
bonds
from
—:————~———:—
—
// Billy,"
.
RETAIL DISTRIBUTION
effectively dim
the prospects of any offering
serially
^ ::
7;
On the following day (Dec. 11),
.
Hutch," ;"Dap-
asked to
are
January,
would
rate of not more than 2%, and
pon
p e r
until
Constructive
Clearly Dictate."
■
——
not scheduled to
are
i
judging from the
four Pennsylvania issues
y
Extent That Deliberate
,i (■
continuing nature of the Pennsylvania new issue-municipal
Moreover, the outlook for any material betterment for the
remainder of the current year is far from promising,
current calendar of impending events."
and
Care. V
VH .^7'
WESTERN PENNSYLVANIA
apt description
market.on
the Securities and Exchange Commission of the Committee
That Work-Will Be Done
an
one
Bros.
but
Francisco
7
time represented Salomon
Hutzler in Philadelphia
&
more
at his home Nov. 27.
&
'
123 S. Broad St.,
Investment Securities
7 '
1518
recently headed the real
estate firm of Valdes
Philadelphia Stock
Rambo, Keen, Close & Kerner, Inc.
Valdes, who
Locust Street,
v
PhiladelphiaTelephoneKingsIey3311
Philadelphia
Private telephone wires to New York
Exchange//
Philadelphia 9
New York Telephone
and Baltimore
Hanover 2-2280
Co., died
He
was
53.
v
7..... MUNICIPAL
!
pennsylvania
jersey
A, Webster Dougherty & Co.
]
■•Aa, "aa
7
1421
CHESTNUT STREET
Philadelphia
Teletype
Rittenhouse 2580
PH 70
:
/
Pennsylvania Company offers Brokers and Security
Dealers the facilities of a department maintained especially
for handling clearance of security transactions. Our expe-
/
rience is broad.- Our service is fast. Our fees are'moderate.
•
Teletype PH 222
j
new
Municipal Bonds
Pennsylvania
The
BONDS
a;aaa,
York
I
M
PHILADELPHIA 1:
BOwling Green 9-8184
.
;
/
Buiidiaf
PHILADELPHIA 9
y
■,
FOR
/Federal Reserve System
LIVES
INSURANCES
/
r
v
/ •'
AND
ON
GRANTING
ANNUITIES Founds^
f.
:
Dolphin &. Co.:
Fidelity Philadelphia Trust
Pennsylvania
Federal Deposit Insurance Corporation
a
I
>
A
Member
Municipal Bonds
The//7;5;';>/A7:::;/:
i '//"- ■;//.
15th: and CHESTNUT STREETS
PHILADELPHIA 2
New
'
and New Jersey
j
Telephones:
•
Philadelphia—Pennypacker 4648
.New
Bell
HIT;
York—HAnover. 2-9369
System
Teletype—PH 299
reports for
ended Oct. 31,1945.
During the fiscal year under
review, total net assets of Series
B-2 increased from $10,078,378 to
have issued
S-3,
and
the fiscal year
$14,273,704, reflecting an increase
number of
shares outstanding and a rise in
the net asset value per share from
about
of
Last Chance
,
i
■
.
,
.
getting corporation execu¬
tives started on a Trust," says Distributors Group in a current mailing
eh -Employees' Profit-Sharing and Retirement Trusts.
And never
again will this incentive be as powerful for many companies as in the
"Tax saving is a
powerful incentive in
next 30 days **
.:t *
^
provides
profits tax; on Dec. 31, 1945,
at once^—
~
~
"
Elimination of the excess
the
"get going"
to
urge
for those who .are
Group
Distributors
LOW PRICED
~
plaftning to de¬
•'
this investment field.
velop
v
a
as
Career.":
It
is
pointed out that the millions of
returning veterans and released
war workers Will provide invest¬
/ ■)
with
firms
ment
oppor¬
rare
a
:
'
7/
.
Series
S-3, during the same pe¬
riod, increased its net assets: to
$11,403,441
from $4,523,892, re¬
flecting an increase of more than
86% in the outstanding shares of
the Bund and an ir^creasd in the
net; asset
value
per
from
share
Custodian Funds
of Oct. 31 are
as
reported to be in excess of $150,000.000.
/
'
'■■■-/
yt/
Lord, Abbett, in
a
Ptinciple
r
"y
vestment
Bulletin
•<
,
.
.'
/; •%■.<; 7'/;
current In¬
Affiliated
on
tunity to expand their sales per¬
y ■'
y
These men Will be - diligently
Fund, discusses the principle fol¬
seeking but opportunities to start
ciple is called "value selection,"
which means that each-issue se-;
sonnel.
worth-while
;
peacetime
careers.
good men are be¬
coming available every week, but
on the whole they aren't .going to
look for a "selling" job.
Recent
Thousands
of
in the
lowed
rrfanageiftent of the
investments. - This prin¬
Fund's
1944.
•
/'
-
•
•
.
The Situation
John Kormendi Is
Reopening Inv. Firm
/ ■
.
/■■'.'/
:
Captain John Kormendi, A.U.S.,-.
,
Sanders
Vance
Brevits,
Co. reprints a
&
"Confidence
.7 r
entitled
prices
f-The following reasons, are given
to support this opinion:
1. Previouswere-
• ?■;
financed
r
:
major V. advances
to a large extent
by
'' borrowed ■; capital. v.; Margin
trading is a negligible factor to-
"'/■
There is a healthy relation¬
ship/ between bond and /stock
yields.% The later phases of pre¬
bull
vious
markets
were
usually
featured/ by; a decline in stock
yields below those for bonds, but
such
situation is
a
still/far distant;
^3y^Sfnce7'money • rates are low,
and may go even lower,/ a more
liberal capitalization/: of common
^
„
stock
and
earnings
-
5
Distributors Group* Incorporated
<53 Wall Street
New York 5, N. Y.
*
dividends
place without creatiiigaft-over-inflated situation./
dould well take
Company, brokers and dealers in
securities. The firm, organized iri
1936, suspended business in 1942
when Mr. Kormendi entered mil-
portfolio must stand
to
in
our
'sell'
them
on
business today." "
"Better for the Widow"
INVESTMENT
recently re- '
is now /
being released from active duty. •
Propose Change in Date
Of Annual Meeting of
?, 1' \
:
lection.
this
y
kA Mutual Investment Fund
Request
7// ,/7//,
general distributors
NORTH AMERICAN SECURITIES CO.
-
,
*
.
t
k
National Securities Series
title,
-The
the
on
,
ending
Oct.
•-/ t
31,
for
held
iTo quote the sponsor,
National Securities Series, is at
hand. ; Total net assets of the nine
by
"wherever
arid Whenever/a client runs across,
this/- particular
review, / Funda¬
mental's /rise to
29.7%
second from
it
of
11
1
Building
One
•
San Franciica 4
/ Mutual Fond Literature /-/
of thi
share
record—providing "better income
and better appreciation" than the
m
Barron's programs.
national
Keystone Custodian Funds
Two Keystone Funds, Series B-2
i
asset
value
date of $5.82.
$5.18
on
$4.05
on
•
on
the
This compares With.
June 30, last, and:with
Dec. 31, 1944, the end of
the
1
latter
previous fiscal year//v'^';f"'v'v7
Assets attained a new high level
Seo§ritIs!Ieries
f
National Securities & Research
Corp.—-Current issues of National
the
proxy
that
date
the
;
latest -Investment Timing. present the articles of association
of- The- Chaser National
Bank
% 7 Hugh W.' Long & Co.—The
specifies the second Tuesday in
euir£nt NeW- York Letter en New
January, which/ for many years
York Stocks* Inc. .
.
Distrib¬ has been the day on which meet¬
utors .Group—Notice / of / change ings of National banks generally
have
been
held. The
proposed
Of fiscal year of Group Securities
change to the last Tuesday in
from Dec..31 to Oct. 31; dividend
January, it-is announced will make
information/ on Group Securities.' it possible for the bank to prepare,
.
.
Keystone
Co.—Latest issue
Keynotes entitled "Last Call
for
print, and mail its annual report,
stockholders before the meet¬
to
Tax
Priced at Market:
c/eo r>
PUTNAM
NATIONAL SECURITIES &
itunda:
RESEARCH CORPORATION
Savings." /.
C,
,
.
information on ,
.
.
i
Investments Co.—Memo*/
1945-tax
Union
Trusteed Funds, Inc.
Selected
"These
of
current
issue
Seemed
Important."
Street Sales
of
.
Broad
Corporation—Current /
Items
on
'/
Prospectus upon request
shares of capital stock of
'V;
Inc.
Fund Distributors*
50 State
St., Boston
•
./■
INVESTORS
able
Dec.
24,
Founded
7:
Prospectus
may
The
Directors
terly
of
•
\
f " /
Fundamental
Inc.,; have
vestors,
share
declared
payable on
be obtained from : "
the
Corporation's
1045 to
Capital stock December 24,
of
holders
on
record
at
In¬
quar¬
of $1.(55 per
dividend / No. -4#
business
the
close
J7,
l645.
December
of
or
your
local investment dealer,
or
Keystone Company
of Boston
Congress Street, Boston 9, Miss.
1932
THE
PARKER
W R. 6ULL MANA6EM1NI £0., INC.
CORPORATION
Distributors
ONE COURT STREET. BOSTON 8, MASS.
•
A
15
William St., New York 5
;.
1945, to holders of
17, 1945/
"V
FUND Inc.
,
No.48,
dividend
Fundamental Investors, Inc.
REPUBLIC
50
|
'
,
Investors,. Inc.— »
amounting to $1.65 per share, pay¬
record Dec.
Custodian
local investment dealer
In¬
Street In- y
/7V. Dividend
•
ey/stome
your
National
••//;
Fundamental
Quarterly
Putnam
-
The
.
.
vesting Corp.
/
from
Shares;
Things
American
Selected
on
vestors Corp. and Broad
Y.
be obtained
Lord, Abbett /
issue of Abstracts cov-
ering
issues
120 BROADWAY
may
1947','
ing is held, commencing in
Prospectus upon request jrom
\
your investment dealer or
Prospectus
annual
the
fcr
.
meeting of a National bank- must
be on a day in January specified
in/ its articles of association. At
—Current
Nbw York 5. N.
Dec. 4. •v'-V-'// %/
j
Shores
\
on
The National Bank Act requires
Notes:
■/.
INCOME SERIES
of. the
being informed
are
change Jn the annual
meeting date in a formal. notice
of
the
forthcoming • v! meeting
which was mailed to them with
•'
•
25OO Ru»i
of the bank
January. Holders
proposed
placed
s
future.annual
meetings of that bank will be held
the last Tuesday in Januaryinstead -of on the second ^Tuesday
on
stock
the top in record
performance^' I..."" ■/
the
the
at
ing on January 8,.
in
kuchi studies of management abil¬
ity, he ismost, likely to see Fun¬
damental at - or near, the top.'/ In
Bank
of
The Chase Na¬
annual meet¬
shareholders .-of
tional
vote
by
approved
•/.If
results of mutual investment com-
1945,
;
Chase National
y Hugh W. Long & Co., sponsor
of Fundamental Investors, has re¬
printed a Standard Ik Poor's Stock
./.'//;• \77 Report covering the nine months'
semi-annual : report 6
period
Among Leaders
to demonstrate' the
used
is
advantage of continuous value se¬
/Funds on Oct. 31, 1945, are re¬
Barron's five
ported at $34,418,671, as compared
years ago.
Tables show the reSuits of these programs and com-: yvith $23,638,455 on April 30, 1945/
After deducting the distributions
parative figures
are
given for
paid to .shareholders, asset value
Selected American Shares during
per share ranged from $4,75 to
the periods under review.
\ $9.40 on Oct, 31.1945.
It is pointed out that the Barr
fon's programs roughly cover the Affiliated Fund
'difficult
investment
period
of
! Affiliated Fund in lis first an-World War II—a period of great
nual report on the new fiscal year
uncertainty and conflicting trends.
basis covering the period 'from
Despite this fact, Selected Amer¬ Jan. 1 to Oct.
31, 1945, reports per
ican Shares
shows an excellent
contest
COMPANY
V:
chart
vestments Co.
COMMONWEALTH
on
*
out¬
Selected Inr
presents an attrac¬
tive and interesting brochure re¬
viewing the eight - prize-winning
programs which, resulted from -a
Under
Prospectus
the
opportunities that exist
:
He
service.
itary
"
standing
v
turned from Germany and
show that most of them
prejudiced against selling as.
have
n't,'-7'
John Kormendi / v"
.
YOUR INVESTMENT DEALER OR
reopened
Kormendi
in
■
t
has
Justified."
Market
earnings in prospect, we are con¬
; The fact that this simple prin-:
ciple Works, says the sponsor, "is vinced that stock prices ultimately
substantialyhigher
a career.
7-\
%■/,'■
'//'," attested to by the good record of will preach
"To get the best men, you will
this Fund during the period that
have to go after them.
You will this method has been in use."/ A
Fundamental
are
he
of, John
Standard & Poor's review of stock
surveys
'A PROSPECTUS ON REQUEST FROM
offices
the
fr;The conclusion is reached that,
the thorough. scrutiny of ■ prbfes/f -flaking into account the condition
sional analysts on its own merits 6f the market itself, the monetary
as an individual investment valiie.
factor,/" and the record corporate
lected for the
that
announces
the current issue of
In
.
dgy.'"
r
Total assets of the 10 Keystone
!
of $30,991,205 on Oct. 31, com¬
pared With $28,450,852 on June 30,
and with $25,036,174 on Dec. 31,
the
$27.08 to $27.54.
has
also
in
39%
$10.57' to $14.32. *
macfe available to dealers an un¬
usual and well presented booklet,
"Selling
Thursday, December 6, 194$
COMMERCIAL & FINANCIAL CHRONICLE
THE
HUGH W.LONG and
Incorporated
National
48 Wall Street,
COMPANY
.
.
Distributors
New York 5, N.
Y. '
THE
COMMERCIAL & FINANCIAL CHRONICLE
Personal
My
J,'
'
'•
/'
I
By ROGER W. BABSON
"
*
,
u
|a
,
<■
,
,,
J.v
.
' Hi''
H
'<
1
•
.
'«•'
••
''
1
1
Miv Babson Holds That, Aside
From Breaks to Correct Technical Con¬
ditions, the Current Pull Market Will Continue and Gives Sw Reasons
for His Belief.
Although Advising Investors to Keep Some Cash Idle
almost
were
Re-Investment, Concludes That Labor Leaders and Mr. Bowles Will
That Much Prosperity With Higher Prices
Abandon Their Positions and
Is Ahead..1
-t. ;/■
I
to
correct
technical
r
1—-—re¬
the f—
before
very
the
stocks
were
money.
Yet
held
.,\
*
-
o
1-
be
—1929
and
1937—were
tre-
1.' The
end
us
o
ployment be avoided,
.
markets
followed
of
to
The
<
liquid in
case—one,
chance out of
their
;
,
ders.
'"
returned
Small-Millburn
Company,
Wheeler-Kelly-Hagny Building.
The
Capt.
Richard MePherson
returned from 4% years in
; ■
■
Army,
22
of which wasjoined
The
Company organ¬
has
Small-Milfburn
"
ization.
f
•»'
.
MILWAUKEE,
WIS. —William
-
B.
£ Goldie has becomp associated
going- higher.
The ^only fly
consin National Bank
Mf. Goldie in the past
D. H. Ellis to Admit \
;
with Riley & Company, First Wis¬
D. H. Ellis &
Co., 14 Wall Street,
Building.
New
York
City, members of the
with
New
York
Stock
was
Exchange, will
in, the ointment at present- is in
Jojhn Nuveen & Co, and the Mil¬
admit
connection with labor-strikes; and
waukee: Company.
limited partnership on
c
^
'
v
: ■
Curran, ^Jr.
Guernsey
1946.
The very
3.
interest
which
rates,
that
mean
at,pres-
even
Babson
stock
nt
e
P
p rice s
npe
may secure with^safety a bettejr
interest return than from banks
ojr
®
bonds.
'
4.
''' 71
*
'i
''
V
'r
The
scarcity of good stocks.
There are today fewer stocks list>
*
ed
ori
the
New:
"
York
change than there
4
ago;
as
five years
much idle
awaiting investment,
r-money
5.
Stock. Ex-
were
with five times
The
wage
and
rumpus
ac-
|: companying strikes will only de^ lay good times; not destroy or
prevent them.
ts
Besides, merchan¬
and
benefit
;
leisure " stocks
from
all
fact that stocks
owned
wage
are
in-
most-
outright and that¥total
1 stock
exchange transactions are
today only 6% of national income
compared with 105% in 1929.
,
Keep Some'Gash Idle
In
.view
of
the
-
above,
A M
R
E
C A
-
.
some
f readers wonder why I also advise
keeping some cash and Govern?| ments on hand. The reason is be?
i
of the
cause
% a,
one
chance in ten of
R
A
F
LT E R
break in the market. This
severe
| might give such extraordinary
§J
op-
portunities'for re-investment that
?
j it is always advisable to keep
1 certain
amount
for this "one
■iy'-lAs
of
cash
LECTRONIC; air filters
inutep" chance!
illustration
an
a
hand
on
E]:
cle^n
what
of
I
.feet ed
w a very high-grade Stock
Exchange
A Firm.
It is titled'"'Eight Attract?
ive
Stocks."
These
stocks
today
/
'
?sell at
average] price of $55.50
an
-and
give an- average yield of
p3.65 %.
Yet .these
same
; eight
-stocks
:■
'
.
'
'
«
/■
keep
the, world.
air-is a
;
our
inflation
past five years/' Those who
advice
are
impaired
stores,
by
hotels,
air
con-
hospitals,
ducers^;telephone exchanges^ chemical laboratories,
>
-artgaUeries, and libraries are a few examples of!
fur commercial
-
,
(«r
1
'
'
^
tiFJ
and industrial
The'Company also offers the services of
an
experienced engineering staff thoroughly qualified
is
fundamentally
dust
Its busi¬
engineering,
and
in
addWim to the technical knowledge accumulated
through
offers
years
the
of research and experimentation, it
practical
experience
from the
gained
solution of thousands of intricate dust problems.
Many
leading
responsibilities
engineers
involve
pheric dust rely
modern
in
upon
their
integral part of
elimination
whose
of atmos¬
AAF products as the most
air
Since
line.
any
consultants
and
the
filters
are
air-conditioning system,
a
an
vast
.
field of operations lies ahead.
has ..'.developed,;'
distinct types Qfi
;fhrqii^h-hiodWtfe elcctro^s^
impressive list of
users
of AAF equipment and
Already
proves
a
long and
the pre-eminence
engineering in this field.
_
A
fp^Another^ii^ertisementl?y,:
p^rfeQturin^Sml^f^ tleyelttymepts,. EqvitQpte'hxts helped
took
sitting pretty today*
4 There
are two things that can
happen in the present situation!
(1) Unreasonably high prices and
,i profits
which
will
result
in
j increased
employment;
unrea?
sonbly. lower
prices
and
high
which
will
result
in
:i wages
much unemployment.
Neither of
these will win out, but, there will
vv
,
t
,
i
Gov*
{
■
is
;
choice
or
'ernment repudiation.. I have been
warning readers of this for the
my
A 'p:':P ■1
vv:.
America n-.^ Aif J
they ret
offered
ever
ls Ahead
We must take
more
use.
the buildings Teqiiiring pure, dust-free air.
lowed every great war. There
no other way pf paying for such
war.
per-;
office and public buildings, textile mills, food pro-;
..laborlincreases.Inflationhasfol-.
a
developed and
necessity today in many industries
worker efficiency
..
| between
3::'',,.'3"
-!
It is nonsense tuiattempt ta pre4
vent % either
price- increases or
>
ters
in the solution of difficult dust problems.
,
.,:;l?■Inflation
and:
ness
;yturn,
*
been
fi Iters,: the flrst complete line of; electronic air
men
in
,wfir-time pressure by American Air:
lamination.Department
available
; tunities when, as, 'and" if
t,o provide super-^
Filter Company, Inc., Louisville, Kentucky,- largest
where
>
certain amount of; funds
for ■ such rare
oppoiv
a
have
—
—
efficiency
top
protected against dust, bacteria, soot or smoke and
,
The abovedoes I not - mean; fhkl
in the
next bear; market
these
eight § "high-grade"
stocks
will
reach their 1932 laws, but most of
them may go down to nearly these
figures, At any rate, the discrep?
ancy is so great that it pays to
-
under
for
exclusive producers, of air-cleaniug equipment in;
Clean
:p:
3
l
where, machinery and materials in process must be !
sold at an^average of only
$5 in 1932,
air
machines
have in mind, let me refer to an
Investment List recently issued by
;
:1:
;
reductions i'or
low
haa
the
months
and
overseas,
tax
The
to
his duties with
|
'
2.
has
resume
.
;
,
Chronici-e)
Pinancui.
Small
unem¬
Riley & Company
Special
M.
groups
of ten—something unexpected should
unfilled-, or¬ happen, -. •,
:1 Vr '/•; :•1
? ;;
backlog
Don
Wichita to
Moreover, only by such
compromise. will much
a
-
m
WICHITA, KAN,—After two
years* service in the U. S. N'. -R.
solutely iinreasonable stands. If
so, much more prospfrlty surely is
Wm, B. Goldie Joins Staff
both of these bull
a
Smail-Milburn Co.
will retreat from their present ab¬
on
;
general compromise by both
by a nbse dive in general business;
yielding something; ■'.This
certainly,: this is' not in evidence
lapses.
There compromise may not suit anybody,;
at : the ;.;mornent;
Fqrthermpre,
but
are r
it
should result •», in >; higher
many
money rates were high in those
reasons f
for stock prices. On the other hand,
years, while they today are very
this:
! ' it is well tokeep some funds
low with no immediate chance of
bull
current
marketc
Smalt, McPherson at
the labor leaders and Mr. Bowles
ton high.
are
in 1929 or 1937 when busi¬
was uncertain and when 80%
rowed
•
known anyone to
by selling stocks
during labor troubles. Hence, my
personal conclusion is that both
never
money
tions
of
stock market may have a break
I believe that it will be some time
conditions,
have
make
ahead and the stock market is not
ness
;'"".yr,
'-Ppp
preceding the
Certainly, condi¬
much better today
I
decline; in 1937.
than
still bullish..: Although the
am
j
none
,
for
Conclusion
has
always been
successful in advising when tio
get into the stock market. As to
getting out,. it is always more dif¬
ficult. Preceding 1929 there were
many
danger signals, but there
'
(
column
This
c
'
N A t H V I L L E
.
companies,
is
ready
,
to- do- its
part
supplying
si
to- finarice many Southern
others
withi atpitQl- funds.
\y;
MEW
r,
'
A T
KN
L
A
N
VT i
OXVILLE
M
J
HI »
HART FORD
BIRM I NGH AH
NEW ■; ORt-EANB
T OR*
I HP
GREENSBORO
rities
CHATTANQOGA
BROWNLEE O. CURREY, president
322 UNION
STREET/ NASHVILLE 3, TENN.
TWO WALL STREET,
NEW YORK 5, N. Y.
Jan. 1.
to
THECOMMERCIAL At FINANCIAL CHRONICLE
-
2712
mixed
of
in
found
is
Home Insurance
vs.
the
case
Fields Opened for Plastics With "EMCO" Cold
Mold Powders Developed by Myler Plastics
Corp. [
of
Hartford Fire
and Insurance Company of North
insurance stocks have appreci¬
America.
Since 1936 Home has
ated 14.7%, as measured by Standard & Poor's Weekly Index.
This
experienced a downward trend in
compares with an advance of 24.7% by the Dow Jones Industrial
net investment income, while, both
Averages.
However, from the 1942 lows, the relative appreciations
Hertford and North America have
have been 125.3% for fire stocks' and 104.5% for industrials.
A com¬
experienced a substantial upward
parison of the year by year market moves pf both groups is rather
trend; furthermore, Home's liq¬
interesting, as follows:
f
,/,„
j
Fire Insurance Stocks
Dow Jones Industrials uidating value has increased only
%
Gain
10% since 1936/ while - Hartford's
'Period"'
" •'
' ' I ^ •''
'' f
' *&> Gain ■
28.5%
1942 Low to-12-31-42
:
78.0%
has
increased 62% and:; North
13.8%
America's
55%, The relative maf12-31-42 to ' 12^31—43--—1'/,//' .8.8%
ket actiqn of ^ their stocks 'has. re¬
46.3%
; ;• Total period-v 93.8% • flected^ fthd should continue to re¬
12.1%
12-31-43 to
flect, such; marked/differences; iri
l%-31-44--^---.:^--;v> ^ r 1.4%:
-managerial results., • .,
63.9%
Total,. period / i//i—/.96.5%
With .regard / to. operations for:
'
9:24.7%
thefirst
half
bf
f 12-31-44 to li-28-45^L^2—•1945, Alfred M.
'
14.7%
Best reports that the semi-annual
104.5%
;
Total period
statements/of
125.3%
% stock fire Compa¬
nies show/v id the aggregate, un¬
Fire
insurance
stocks^ it is>earned premium reserves approxi-.
plain, advanced very sharply in is believed to be somewhat higher
mately/ 10% higher than a year
;
1942, but since then; have lagged than last year.
ago, and net premium volume 9%
behind the general market, though
Neither the market perform¬
higher.
The loss ratio has risen
their rate of appreciation has in¬ ance of insurance stocks nor man¬
from 56.5% to 59.9%, but the ex¬
creased
quite substantially this agerial results of insurance com¬
pense
ratio has declined from
.year.' '/ >-■
[
'
•' '•
panies are uniform.
In fact, the 41.1% to 40.7%.
Underwriting
As a class,; fire insurance stocks market tends to be quite discrim¬
operations aggregate a pet loss of
offer
unique long-term invest¬ inating,
particularly
over
the
$1,573,000, compared with a net
ment possibilities; and are attrac¬
longer term! and sometimes even profit of $2,967,000 for the
first
tive at current levels despite the over the short term: For example,
half of 1944.
N et investment in¬
market rise-which has recently Franklin Fire and Home Insur¬
come,
however, is 2.8% higher
carried them above their 1936 ance both reduced dividends in
and alone covers dividends ,1.5
highs, Dividend income is. mod¬ 1944 due to. impaired earnings. As times. '
Surplus and liquidating
erate, but well covered, and long- a
result
their
stocks
declined values
are.
higher and federal
term equity growth is character¬
16.2% and 12.8%, respectivelyv in
'taxes ^8%/loyyer/v,/£//^
istic.
Nevertheless, careful and 1944, agaihst a moderate appre¬ / So
far. as individual companies
discriminating selectiQn is essen¬ ciation; .of 1:4% for Standard^ &
are/' -concerned/ comparative re¬
tial if good investment results are
Poor's ' Index, ' Which
includes sults are mixed.
Most show im-to be obtained.
Home's stock, and compared with
provement in net havestmeiit ihan
Fire-losses, have been increas¬
appreciation of 10.5 % for In¬ come; some show underwriting
ing since 1942, and for the'first surance Company of North Amer¬ losses and some show profits/ a
*
Since the close of last year; fire
;
„
..
,
Plastics and Process How Available
New
uniformity in managerial
results
/
.
Revolutionary (Type of Cold-Mold
under¬
avefaged met
writing profits for the,period.
An interesting example of the
lack
Insurance Stocks
but
results
By E. A. VAN PEUSEN
—•
net
averaged
but
underwriting losses for the period,
companies showed mixed
and ten
Bank and Insurance Stocks
This Week
results
Thursday, December 6, 1945
.
''
The Myler Plastics
Corporation,, creators of cold-mold plastic
powder; announced Tuesday that ground had been broken for- the
A
,
/<
4
I
n
>..£
vi
erection of
its
-
'
-
fac¬
new
new.
.
of
the
company,
"will
be
de¬
cheaper than prevailing, markets."
signed
espe¬
cially for/the
productionof
its ' new:
/"The
-
;
and
'
,
Thus far this year Franklin
appreciated 7.1 % from 24%
to 26%; (asked) and Home, 8.9%
from 28 to 30% (asked), both of
which are below the 14.7 % of the
ap¬
ica.
proximately 7.7% above/ the same
period of 1944. Thus^underwritr
ing results in 1945 will be less
■has
ten
of this
months
favorable
than
year
1944 for those
in
companies
whose
premium writings
fire risks,-'
However,
are
allocation
of
heavily in
_■/
'
is
On thd
Index.
other hand,
was
on
During 1945 the
lines," in¬
cluding motor vehicle, ocean ma¬
in
"other
.
rine, inland navigation and transportation, extended coverage, etc.,
net
underwriting
losses
four-year period;
12 companies showed net under¬
writing proffts iri each of the four
entire
companies
five
years;
showed
The
investor
heavily in fire; His selections
preferably be among the
stronger companies, those which
diversify their lines of risk/ and
should
have
sound
CLEARS
Manufacturing
/////Co,;/:^.
THE HURDLE
and
sub¬
The long-
prosperous
sidiaries and affiliates.
term
outlook for
rarily heavy fire-losses, the Su¬
preme Court decision and the nor¬
the company;
"open up side fields
the
advertising, ■*' plumbiiig,
electrical,, building/furniture, au¬
tomobile, radio) and, other fields,"
heretofore largely out of the reach
first
of
manu-
facture
of
E. W. Myler
!
plastic articles
high speeds, and
exceptionally low costs."
"With
name
'EMCO'
powders," trade
for the Myler Plastics Cor¬
poration
compounds,
markets
are
"great new
opened up in
now
the plastic field," said Mr. Myler.
In
explaining this'he pointed out
that although the plastic industry
had made great strides since its
early beginnings 30 years ago, the
relatively high cost t of plastic
Transactions
difficulties : and
hazards
The San Francisco Stock
McGuckin, member of the
Stock Exchange, will
York
a
partner in the" Stock Ex¬
soon
announce
another
revolutionary. develop¬
ment, in the metal-plastics field.
Exchange reports
an
of this year over the same, period in 1944, than any of the
leading national securitief^—
-t—
—; ■'
,"
■
exchanges, with the exception of
Philadelphia. The Exchange's per¬
centage gain
in
September as
compared with the same month in
1944, was greater than that of any
other national securities exchange.
The
Francisco
San
Stock
change is the only securities
ket
outside
of
New
York
Ex¬
mar¬
whose
Exchange
because
of
which
when
noteworthy
increase , is
compared with
average
an
increase of 65% for all registered
securities
exchanges.
Moreover,
the San Francisco Stock Exchange
the only national securities
exchange showing such a marked
gain in that period.
The next
largest increase was* that of the
Boston Stock Exchange with 76%.
September volume gave the San
Francisco
Stock
Exchange
the
rank of second place among all
was
regional securities 'exchanges, be¬
ing surpassed only by Chicago.
For
its
first
the
nine
1945, San Francisco had the sec¬
ond largest percentage gain in
lar
market value of transactions over
members, being relatively high
period in 1944 of all na¬
securities exchanges.
The
in comparison with other securi¬
the same
ties exchanges. ///
tional
formerly
"
In
September,
value
Exchange
than for the
this
of
year,
transactions
96%
was
same
the
on
greater
month in 1944,
increase for the na¬
exchanges, listed in
as indicated
volume, for the first nine
percentage
tion's leading
order of importance
by
months of 1945 and for September
this year, are as follows:
Bought—Sold—Quoted
'/■/.
'//'/
BANK OF AMERICA
-Percentage Incr.lst 9 Mos.
'45 VS. '44
Laird, Bissell & Meeds
Member* New York
l«0
Stock
Members New, York Stock Exchange
and other leading exchanges .
Telephone: BArclay 7-.H50A
Bell
(L. A.
SIM#^'/'ARDEN
et
FAR1J1S COMPA3XY.
Q-.T■
Exchange
BROADWAY, NEW YORK 6, N. Y.
Teletype—NY 1-1248-49
1 WALL ST.
Gibbs, Manager Trading Department)
7
KAISER-FRAZER CORPORATION
/
PRIMARY MARKETS IN
,
^
53
i;-:
74
96
76
,
53
-
<73
•
;
ELECTRIC COMPANY
SoM
Bought
i
•
66 / /
62 ,1:
77
Philadelphia
Los Angeles
'(Preferred#)
BANK and INSURANCE STOCKS
Sep. '45
Sep. '44
65%
SAN FRANCISCO. 69
Boston-j46
PACIFIC GAS AND ELECTRIC COMPANY
SAN DIEGO GAS AND
All Exchanges///- 45%
New, York-.44
New York -Curb-,--- 54;
Chicago —50/
KERN COUNTY L^ND COMPANY
NEW YORK 5
Telephone DIgby 4-2525
of
months
pro rata Volume per membership,
of which there are now 62 regu¬
the
partner in de Coppet
will
laboratories
months
other
market
a
,
expansion in vol¬
gives the Exchange's
position as, the second largest securities market in the Nation.
The San Francisco Stock Exchange, it is stated, had a greater
percentage increase in market value of transactions the first nine
change firm of Brinton & Co., 1
Wall Street, New York City, as of
January 2nd. Mr. McGuckin was
& Doremus.
low-cost, high-speed equipment'
utilizing "EMCO" powders.
Predicting
that
the
"Plastic
Age" would bring millions of new
products
designed
for
better,
more
cheeful, less costly living,
Mr, Myler stated that the Myler
of transactions this year and on this basis
Stock
B. F.
can
plas¬
own
installation of
current
of
McGuckin
articles by the
'Frisco Exchange Mounting
on
~
to
business
Trading in September Was Almost Double That of Same Month in 1944.
Exchange Reported Now to Rank Second Place in Volume Among Re¬
gional Exchanges.
/,// //':////vv./
'/0:,y
business enterprise.
Brinton
in their
form
manufacture their
now
tic
memberships sell at prices com¬
parable to
these
Eastern
Ex¬
changes, the last price being at
$25,000.
This valuation reflects
'See "Chronicle," Sept. 13, 1945,
the earning possibilities of a mem¬
Page 1238.
/
bership
in
the
San
Francisco
mal
plastic manufacturers. In addi¬
tion, companies using plastics in
some
af phenomenally
such companies
excellent, despite tempo¬
appears
become
FIRE INSURANCE
to ./select
too
New
Russell
needs
the
proc¬
in/
time, the auto¬
matic
ume
He would be wise to keep
away from the Weaker companies
and from those which concentrate
as
the
for
the
during
sify.
Phenix,
showed
than
with care and does well to diver¬
Continental, FidelityGreat American, Insur¬
ance
of
North
America
and
Providence-Washington have each
stocks
results
first half of last year,
.
in "other lines,"
proportion
writing
such
pointed out in
July 5/ 1945, fire
appreciated over 20%, which is
insurance
companies
have
so
broadened their operations in re¬ considerably better than the In¬
dex.
/:'-•■• V>/// \ / .....
cent years that the name "fire, in¬
With regard
surance company"
to lack of uni¬
has, with a few
exceptions, become almost a mis¬ formity in managerial results, a
nomer.
According to Alfred M. recent* study of the underwriting
Best Company, 77% of the aggre¬
operations of 32 representative
fire insurance companies during
gate premium volume of all stock
fire insurance companies was in
the war years, 1941 to 1944 In¬
fire risks in the year 1920; in 1944 clusive/disclosed some interesting
only 54.5% was in fire with 45.5% facts, as followsFive companies
as
this column
few show somewhat better under¬
revolutionary '
p o w d e r 's
which permit 9
for
Myler company
new
esses'and powders," continued Mr.
Myler, developed by Frank J.
Moore, Engineer and Chemist of
■
,
...
costs-and
factory," said
E, W, Myler,
President
i
.
compounds, plus high equipment
slow productoin, meth¬
ods, had greatly retarded-its de¬
velopment.
"Now,"
said
Mr.
Myler, " 'EMCO' powders- make
possible the production of small
plastic items at the rate of 25,000
to
30,000. per
hour, at a. cost
tory in Plain-,
ville, Conn.
"'Lne
•
<S>-
Quoted
NATIONAL BANK :
of INDIA. LIMITED
' GEYER& CO.
.
First California Company
•
Incorporated
•
Chicago 4^
/
231 S. La Salle Street.
FRanklin
7535
NEW YORK 5 *
67 Wall Street
:
1
NY
HARTFORD, Enterprise 6011
.
.
•
j
Bankers
the Government In
'
/
.
Head:. Office:: 26r
.
Bishops gate,
London. E. C..
,
>
in India, Burma, Ceylon, KenyaColony and Aden: and Zanzibar
Branches
300
Montgomery Street
650 South
.
SAN FRANCISCO 20
Tcletj^e SF 431
.
Oakland
San
Diego
San Jose
„
1
-
Spring Street
LOS ANGELES 14
YUkon 1551
BOSTON, CHICAGO
TO
to
Kenya Colony."and Uganda
■.
.
INVESTMENT SECURITIES
ANGELES
PORTLAND, Enterprise 7008
PROVIDENCE, Enterprise 7008
'INCORPORATED
.
jBS-297
NEW YORK.
PHILADELPHIA, ST. LOUIS, LOS
TELEPHONES
.
HUbbard 0650
1-2875
PRIVATE WIRE SYSTEM CONNECTING:
* "/'
Boston 9
10 Post Office Square
WHitehall 3-0782
CG-105
.
'•
.■"•/
-
•
Subscribed
Capital
Paid-Up Capital
TUcker3151
Reserve Fund—
Teletype JLA, 533
432
1
Bank
The
Stockton
Beverly Hills
Long Beach
Fresno
Reno, Nevada
•
Santa Ana
Sacramento
Monterey
__£4,000,000
£2,000,000
£2,200,000
conducts, every
description
-
«£
Ranking and exchange .business
,
Pasadena
Trusteeships and Executorships
>
also undertaken
-
*
.
,
•
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
1621
Volume
2713
"'1
American Economic
■
c'
the
of
Chairman
lyn
Resolution of Our Economic and Social Disunity,
Urges Moderation
on Both the Leaders of the Jurisdictions! Fights Within Labor and /.he
"Stubborn Individualists" in Managements He States That the Real
at
the
Federal
in
no
our
subject more deeply significant to all
discussion here tonight;
"American
bility;'* There Y(
for; Prentice-Hall
number
of
is
that are
for the creation, main¬
tenance. or
continuance of
the
economic* stability of America.
J
as
domestic
no
necessary
issuemore
fundamental
to the welfare
of
doubt if any of us have a proven
nation
-our
formula for the attainment
than the ques¬
tion
of
Utopia.
when,
/ A
and how soon,
of this
'
subject
;
vast
so
j Com
a
is
Academy
Science
tional
Association.
tinger.: has
on
taxes
been
the
at
a
in
engaged
tax specialist.
as a
member of the
Tax
a
and
the
Na¬
Mr.
Et¬
guest
Detroit
speaker
of
Board
Commerce, National Retail Dry
Goods Association, New York and
Massachusetts
State
Societies
Certified Public Accountants,
and
other
business,
;
of
arid
technical
professional organizations.
of neces¬
sity, in the time allotted be treated
means, we are
in general terms. Many 'years ago
to attain ecoa
scholarly divine in my section
nomic
sta¬
asked a successful evangelist the
bility.7
we
secret of his power in the pulpit.
are y to
find
He replied by saying: "Well, my ?
the
; answer,
; Schoellkopf,
Hutton &
Pomwe
brother, I just spread the fodder eroy. Trie.,
must not
investment. bankers,
on the ground so that anybody in
rest.announce
that George K. "Cogthe congregation from a jackass
With
my
geshall has joined the firm as
to a giraffe can get to it." I think,
Vice-President Yin charge of the
background
O. Max Gardner
with due apology, that I shall fol¬ New York
and
experi¬
office, 63 Wall Street.
' V
ence,«I must: Y
Y -YYvY: low. his example here tonight.
( Mr. Coggeshall has been in the
In
confess tnat I do not pretend to
fact, ladies and gentlemen, investment business; for the last
I know more about economic in¬
come to you tonight with any ex¬
20 years, having started with Har¬
stability
than I do about economic
pert knowledge qualifying me to
ris, Forbes & Co. in 1925. As a
speak with; authority or finality stability.;, I was nursed at the sad partner in Holsapple & Co. since
and loving. breast of instability
1933, he lias ( specialized in trad¬
*Art address by- Mr, Gardner and for most of my life have been
on intimate terms with it.
Indeed, ing. and sales Work, with partic¬
before The Economic Club of New
and
economic stability must,
what
by
Coggeskall is Y.-P.
of Schoellkopf Firm
'
York, Nov. 29, 1945.
f
Y;.:; yr
•
(Continued
(
-
:
2774)
on page
ular attention to institutional.and
1
out-of-town
For New "Economic Stability"
dealer, accounts.
Economic, Social and Political
Convulsions,:Arc Possibilities Unless a Balance Is Restored in Rights
and Duties.
Likens Disturbed Situation in Labor Field to Atomic Bomb
and Calls for Curbs
Labor Leaders.
on
" ^ 4
:
^
By following a course that caused complete financial breakdown
life of other nations "we have produced a fi*
"
~
not a t
Y:"'-
has
returned
Co.,; Mills
trader" after
years
to
three
the
Purchas
Baker, USNR,
as
municipal
one-half
and
in the U. S. Navy.
<
New
York
the
Builders
Club
at
Nov.
on
26.
The
ex¬
of
the
far, below
of
a
normal
level.
supplies
?ain, however,
cies
obstacles
will
of
the
than
less
the
inflation
ofi
1919-1920
the
:■
last war.-
'Y
Wardwell.; There is
all
a
tremendous
demand
Jan.
nearly
for
Con¬
sumers
need
and will purchase
large quantities of automobiles
and appliances, certain types of
types of civilian goods.
foods that have been
tiles
and
ings
tributors
manufacturers
and
needed .to
armistice
low
were
a
■
threatens
blow
point
post-;
reached in
.An
in
,
86%.Y/V'y*'Y;:-Y
emphasizing the prospect
of
further
price ^ increase "Dr.1
Wardwell cautioned against the
meet
re¬
belief that the advance would be as
rapid
as that following the last war.
In fact, the advance in the entire
commodity price level during 1946
probably
6%
or
soon
will not be more than
7% unless all controls are
abandoned.
While OPA will
necessarily increase rhany ceiling
prices in li946, inventory specula¬
tion will
hardly be excessive un¬
deal of new con¬
capital equipment.
plant capacity .was
generally over-expanded during
the war will, be justified only if
we lapse into a much lower level
1946, well informed political ob¬
servers beleved that limited con¬
of
trols
Belief
great
a
and
that
production and business activ¬
seems likely.
Both obso¬
and tear have
wear
on
rents and essential
commodities
ity than
and
less controls are dropped. : While
itself may not: survvie mid-
OPA
will
be
e s
spins the more stable
:;y yy- ;
v."-Y Y*.:YYYYY',;-Y
i But during the depression, he
continued, the economy top began
it is."■■
to
,
fo
t ruction,"
to
according
Chairman
off the Westinghouse
rules
poration,
and since there
danger¬
a
was
no
weaknesses
faults
and
mis¬
were
understood and misinterpreted."
We believe that
from the eco¬
{ The
Board
Chairman .listed
"tampering with the money stand¬
ards"
among
what
he 'termed
"distinctly harmful remedies" and
nomic disloca-
added:
;
world
"The
suffering
is-
of
tion
war
and the U,
•
S.
didn't pay the
full economic
price' 'for
war
DIVERSIFICATION
du¬
of America in the world,
plicate
Corf
Electric
down and show
lack of balance, and "since our
had outgrown the book of
affairs
son,
i
run
ous
A. W. Robert¬
A.
W., Robertson
the
f-v.
while it was being fought, so
':;<:'YY>YYY'cY Y'-#Y
dependents will
must
good job without
amount
pays
of other
economic life
>
in
his
address,- "American
nomic Stability—The
Obsolete."
'
Eco¬
Rules Are
'
•.
-.S"';
Tracing the growth of the na¬
tion's
industrial
economy,
Robertson observed that "as
as7 the
Mr.
long
ratio of production to the
one-half
expenditure of. labor was on the
favorable side and we were mak¬
ing more than we were spending,
all was well, because a national
resembles
a
fop in that
that diver¬
a
of
a
substantial
insurance, which
promptly .IOO% in cash when
policy becomes due.
See
,
times, the- size
of life
'Y
..
a
Prudential
YRepresentative Y;
-
,y
the
money-supply of 1940. This supply
is
now
the
tremendous
$163,000,000,000. It
was
sum*
of
Prudential
only $67,-
000,000,000 - five years
ago.
We
have produced a financial bomb
which threatens to blow
omy
-
economy
the
pay
possibilities," Mr. Robertson said
with
'
f "We followed this by increas-r
ing the quantity of money out of
all proportion tofthings and serv¬
ices, following; a course that had
caused a complete breakdown in
the sound
agree
man
sification of investments is not
for it after it: has nations.r Y Y Y^YY'-'- •■YY-*
been won." he told the Economic
4 "This abnormal condition was
made dangerously explosive by fi¬
Club of New York at a meeting
at the Astor Hotel on. Nov. 29.yj ,-T nancing a large part of the colos¬
expenditures
of > the
war
V'No doubt millions of our peo¬ sal
through the banking system. : We
ple will rebel against doing what
printed currency and exchanged
ythe payment will require^ Eco¬
bonds for new bank deposits and
nomic, social and political convul¬
in these and other ways pushed
sions as * powerful as am earth¬
our supply of funds up to two and
quake* are
undoubtedly future
we
every
"But economy
ing and
the
how
INSURANCE
our econ¬
as
show
poor
long
must
the
(Continued
is
a
as
go
part of liv¬
we
on
are
no
page
2718)
A mutual
HOME OFFICE
alive
matter
performance.
cn
COMPANY
OF
AMERICA
,
f
to destruction.
We
L
life insurance company
NEWARK. NEW JERSEY
scarce
continued
beyond that date.
the faster it
to
;
•
While
•
our
economy
d
•
which
bomb
gone.
after the
immense inventory
developed.
Frenzied
bidding v by
manufacturers: .for
semi-processed goods drove up the
price of these commodities by
shipments or sales.
For¬
eign demands, at least,for a year
or two, will have some effect on
food and clothing markets; large
scale shipments of industrial sup¬
plies and capital goods must also
be expected. Y
will
controls
months
current
themselves
most
speculation
will swell, the demand
by placing orders for necessary
inventory replacement, over .and
amounts
1
Within 15
by 29%
tex¬
scarce,
many cases
above
flow
February the general level of all
commodity prices had increased
apparel, house-furnish¬
dwelling units.
Dis¬
and
free
a
"The
inflation
danger"
con¬
fronting us is perfectly illustrated
by what happened in 1919.
By
-Major reasons why commodity
price level will rise in 1946 are
fairly obvious, according to Dr.
accumulated
to
Strikes, labor mate¬
shortages, lack of adequate
machinery and equipment are ad¬
ditional factors interfering with
the rapid increase in the produc¬
tion of civilian goods.
Wardwell
Chas.
following
are
imports.
rial
during
in the sound economic
n
Lack
shipping,
scarcity of foreign
and governmental poli¬
tent
lescence
-
Fur¬
post-war civilian goods^demand.
; In .addition
to strong demand,
Dr.. Wardwell
pointed out that
supplies of most commodities are
still relati vely scarce.
Production
in reconverted industries is still
Exchange
quire
Heller, Bruce &
Tower,
before
struction
SAN FRANCISCO, CALIF.—Lt.
A, W. Robertson of Westinghouse Says
1946"
paper
ther hew construction is necessary
to handle a new high level of
Producers
Shirley H. Baker Returns
To Heller, Bruce & Co.
Comdr. Shirley H.
particularly - in printing,
piaking and textile fields.
present ing Agents
Editor of{ Association of
Advisory
and
for
for
d i t y
Prices
in
m o
the
of .Political
many
national
as
is
At
years.
is
Prentice-Hall
-
,
he
private practice
of us than that
Economic Sta¬
,,
Y'YY'-YYyY;
Service
time
,
~
" r
~T^
to the plans or policies
Taxes."
7% General Price Increases in 1946 Unless All
or
Commodity price, averages will continue to rise in 1946, accord¬
ing to Dr. C. A. R. Wardwell, economist of the International Statis¬
tical:;^ Bureau, ■
! •" <»
•
*—:
—»
been raised to high levels.
Inc.,
wh o
Much
new special mafchinery is needed,
spoke on the
the
of
Mr. Ettinger was Vice President
and £ Editor-in-Chief of the Tax
He
<Y There is
Branch
Y.M.C.A.,
55
Hanson
Place,
Brooklyn, N. Y., at 6:30 P.M. on
the subject "Recent Developments
; "Outlook
Twin Fears of Infla¬
tion and Deflation; and That a Sound Equilibrium Must Be Reached
Through Maximum Production, and Through the Entire Population's
Willingness as Well as Opportunity to Work. Warns Against Profligacy
and a Repetition of the 1927-29 "Joy Ride." He Urges ^Business-like"
Postwar Planning by the Government, Stating That the Most Crucial
Element of Economic Stability Will Be Our Willingness to Adjust io
Changing Conditions.
"
;
Bafsis of Management-Labor Disputes Lies in the
chosen for
Central
6%
Controls Are Abandoned.
Chapter of the National As¬
sociation of Cost Accountants on
Wednesday evening,; Dec. 12, 1945,
Which He Ascribes to the Dislocation of the War.
.
More Than
,
Mr. Gardner Urges the
,
C.| A. R. Wardwell of International Statistical Bureau Looks for Not
Virgin P. Ettingdr, Tax Con¬
sultant, Will address the Brook¬
?
Reconversion, and Former Governor of North Carolina
-
in
Virgil Eltinger
y
and
of War Mobilization
Office
Board,
Hear
V/"
;'::By °- MAX GARDNER*"
Advisory
Cost Accountants toy
Stability
THE COMMERCIAL &
2714
bonds."
In addition to the claims
could
that
be
paid
off
as
cific that are to participate in new
Regardless of the fate of the various
ing to railroad reorganizations which
House and Senate in recent Weeks, it
Missouri Pacific
resolutions and bills relat¬
have been introduced in the
bonds in the
Mortgage
Under
ganization.
the
-
Diamond
men¬
there are only three
Small divisionals (aggregating $3,561,000) and the 1st & Refunding
Mortgage bonds of Missouri Pa¬
tioned above,
1st
Thursday, December 6, 1945
FINANCIAL CHRONICLE,
reor¬
present
is generally conceded that the plan the 1st & Refunding 5s are to
plan is due for major revisions. It is expected that receive an average of $400 in new
<
Anniversary for Missouri-Kansas-Tex,
MissmirirKansas-Texas RaUrbad, during the week Oct. 29
to
Nov. 3, celebrated its diamond anniversary
(1370-1945).
Thecelebration was held at Parsons, Kansas, and was sponsored by the
The
,i
citizens of theft commimity,*
••
•
had
from
the
I
amortization of defense proj¬
With this and earnings in
of
ects.
should
road
the year the
quarter of
last
the
1946 with net
enter
capital somewhat above
working
$75,000,000 after payment of the
under
the present
plan, in cash and new 15 or 25year 1st Mortgage bonds. Payment
of
these
claims
and
the
Iron
Mountain
bonds
(the
latter
the claim as
has
of new 1st Mortgage
for reallocation to the old
$55,213,000
the funds would be supplied
by Missouri Pacific the realloca¬
tion would presumably all go to
the bondholders of that road and
not be distributed also to holders
[ As
Cons. "A" 5s, 1927
1st
/ /
.
Exchange
V
So.
231
&
Refunding
new
.
and
.v/tithe?
family, working together for
good." * /<v:: v;;;?
Morfa further said that 'T
can
see
obstacle in the
no
path of
industrial decentralization
crowded eastern
gration
areas
of
our
I
ai>d the mi¬
industry,* population
our territory.
If I
i this/ inevitable
change,[you may be sure that I
and
had
of
wealth to
;
not
seen
would not have decided to cast my
lot y with
you
people who will :
benefit and prosper with this de¬
velopment."'
Wants Business to War
-
-
Interview, Asks for
Collectivisfs
on
a
bonds in full
rather than
securities
t
to
the
,
York5,N,Y.
LaSalle St., Chicago
con¬
members of the
group of utterly' uny
compromise set¬
American 'experts' who,; with the it. is
beneatfy its ydignity to do /
tlement this stock might be avail¬
co-operation of self-seeking poli¬ anything about- it and assume; an
able to improve the treatment of
attitude
of defense of "white col- /
ticians,' are deliberately attempt¬
junior .securities. </, //,/'/ iy/./
ing to bring America to bank¬ lar rights, labor in the plants, and /
Although the possibility of any ruptcy y by c o n t in h o u s deficit stockholders,"
"
yy ^ y# Jy
•, . /
material
improvement
in/ the spending/; and destiny by debt.'' •A
prime obligation of business;/
treatment of the junior securities
Mriv Hutton is reported to have he declared," is; '[speaking up" on /
is uncertain at this time, there is
said that "there is still a minor¬ public questions such as legisla¬
little questioh in the minds of
ity of determined, envious, ambi¬ tive bills, social and moral issues.
most rail analysts that the status"
tious autocrats striving and plan¬ "Management, has been wrong in /
of the 1st & Refunding bonds has
ning to make this country the land over-stressing the lvalue/of si-« y
been improved materially.
Con¬ of the ball-and-ehain."
./;//,.. lence," Mr. Hutton stated^ "A per- •
siderable investment buying has
| Mr. Hutton added that "they son's judgment is. only as good as y
been going on in recent weeks. V
render lip service to the Demo¬ his
information.
To
those
who /
recourse
leading Security and Commodity Exchs.
120 Broadway, New
Mr,
,
Corp.
MEMBERS '•
as
common
!
E. F. Hutton, in an
Katy,
a
//According to an item published on Dec.; 1 in the New York //
In the present, "World-Telegram," reporting an interview with Edward F. Hutton, //
Chairman of the General Foods Corporation, at his home in West-:
plan about 4240 of the claim was
bury, L." 1., the financier demanded positive action on the part of /"
compromised by giving the hold¬
business to cdmbat collectivist ideology which he described as a
V:
ers
the option of taking around
"Ball-and-Chain"[Rule philosophy. He expressed a fear that if the -/ .
$71 in cash or an average of
"Collectivists". succeeded in.. what fr- ' "
roundly $275 in Class A common
for labor! and then for the people <
stock taken at $100 a share.
Had they are planning they will
at
large."//;////////,///
holders taken the
stock option TUpt American economy and
)A6cording to the "World-Tfele- '
security oh a par with what pris¬
this would have involved a total
oners at Sing Sing enjoy."
gram,"
Mr. Hutton stated that to
/ /;
of 617,010 shares of the Class A
f /"It's about time that we exam-? combat the collectivist trend, busi¬
stock." With the full claim of the
iped this ball-and-chain and the ness ; must forsake immediately;/
1st
& ' Refundings | met
without determined
said Mr. Hutton, the attitude that
Common & Preferred"
Stock
-,y
Parsons and
compromising it.
Interstate
York
full.
in
with
// ^ Powers//
New
the
i m p r o y e
schedules.
:
locations if the claims were to be
met
Northern States
Bakeries
contemplated in
a
Katy
people1
Standard Bearer to Lead Attack
On this basis the major benefit
on
"Ball-and-Chain" Rale of Collectivist Philosophy. Says Business
of New Orleans, Texas & Mexico to be derived from payment of
and International-Great Northern some
of the
claims with
dash Must Speak Up on Public Questions add Asserts New Deal Ideologists //
would be to meet the claim of the
Are Getting Ready to Forge New Restrictions on Private Enterprise.\■
Railways Co.
6% Preferred
was
same
present plan. Under the pres¬ /Thanking /
Raymond J. Morfa
ent
plan the 1st & Refunding
tpA people of
Mortgage bonds are allocated ju¬ Parsons for their gesture to the
nior securities as follows: (rough
Katy; Mr. Morfa said the family
average for all maturities) $380
spirit along the railroad was one
Series A Income 4
$150 Series of its most valuable assets.:/' V v'B Income 5s, and $222 of 5% pre¬
ferred stock. Obvidusly it would
be necessary td continue these al¬
bond holders.
Chicago
compromise part df
•'/j
"So long
hope that we will always
sider, ourselves
the
already been paid) would release
bonds
to
necessary
the
our
work," he said.
there is
as
which
which
in
and
live and
,
.
communities
serves
-
settled,
/:'
-
."The term 'Katy family' is not
just a play on words. It is a very
real and happy relationship en¬
joyed by ail who are active in
the railroad's operations and by
•
financial
be
•
any
community,'''
/Mr'.
Morfa '
1st Mortgage bonds, with the ac¬ told
some new proposal will be forthcoming in the relatively near future.
of
the /
tual
allocation
varying
slightly
K a t y' s plan </
Payment of the Iron Mountain bonds and the still strong
with the different maturities. Re¬
for
improved /
position of the road make the«>
allocation of securities now allo¬ Service in the •
I present
plan pretty much ob¬ $24,156,000 of principal of the
Iron Mountain bonds.
cated to the claims paid off would f ut U t
solete.
,:•/
e; ; re- ;■
i Obviously a reorganized Mis-, lift this 1st Mortgage treatment to
viewing
the f
As of the end of September the
sduri
Pacific
would
not
need an average of $650 per o d bond.
purchase f of
road had net working capital of
nearly that large working capital.
; As of Jan. 1, 1946 the claims of
Stream
lined
close to $85,000,000 after allow¬
It would not be too burdensome to the 1st & Refunding bonds will
pas sen ger/
ance for payment on Oct. 1 of a
pay off in full the claims of the average slightly more than $1,400;
traihs, Diesel
full year's interest on the 1st &
RFC, the RCC, and the banks fpr On the basis of the reallocation
locomotives,
Refunding Mortgage bonds/ It is
around $38,000,000 which would outlined above this would,1 leave
and •- Other /
estimated that this balance was
leave the company with net work¬
roundly $750 to be met in juniof e
qii i p rrt enf; /
increased, or will be increased, by
ing capital of perhaps more than securities. This is on the assump¬
H(£ 4 also told
roundly $12,000,000 from tax re¬
$40,000,000. All of these claims are tion that it would no longer-' be
ductions incident to acceleration
of; plans to',:.'
to
y-r
Raymond J; Morfa, Chairman of the f<Kat\r'' board, referring to]
celebration, stated it was "the finest tribute any railroad ever
'
the
4. III.
....
SUTRO BROS. & CO.
Members New York Stock
Specialists in
120
i
railroad
Exchange
cratic
White Wire to N. Y.
Broadway, New York
ST.
LOUIS,
MO. —While &
Company, Mississippi Valley Ti^jst
Building, have installed a private
Telephone REctor 2-7346
f securities
Situations
Selected
at
all
wire to New York City.
Times
T
RAILROAD STOCKS-BONDS
'
Lr-Xjf
INCORPORATED
25 Broad Street
■
now
/
Aug. 9: >A society of self-gov¬
erning men is more powerful,
more
enduring,
more
creative,
than any other kind of society,
"There is
yoii can
to
a
un-American
New
York
Stock
individuals
are
system so rihey
take over and create the per¬
profit-and-loss
Exchange
can
/
Broadway
v
planning to smash industry, en¬
terprise; and
the
competitive
pflugfelder, bampt0n & rust
New York 6
fect
is
speak out, destiny has given the f
chance, perhaps the last chance to y
sell the American way of life back /
to the Americans and to help us i
all avoid the ball-and-chain." -i- ,/
George V, Jackish Has
standard diametric¬
■!; Contending that pre-war New
Deal ideologists are getting ready
to forge the ball-and-chain again,
Mr. Hutton declared that "plenty
of
Members
however
the: ball-andpremise sired by
truth and born of experience." / •
invest in it!
61
a
opposed
chain; there is
ally
,
Beech Creek
Party and .even to Presi¬
Truman, • yet; they cannot
of
•:
VICTORY-
New York 4, N. Y.
Telephone BOwling Green 9-6400
Teletype NY 1-1063
;
and will not agree with what the
President said in his radio address
however
disciplined,
centralized.'
:22M
GUARANTEED
dent.
monopoly. The ball-and-chain
capita/ then
destined first for
MINNEAPOLIS,
M 1N' N. —
V. Jackish has returned
to Harris, Upham & Co., North¬
western
Bank
Building
as
a
trader.
Mr. Jackish entered the
George
Army in January 1944, serving in
the Service Forces as Sergeant in
Personal
Affairs
Division
at
Ft.
Snelling, Minnesota,
Lexington,
Va., and on other special detached
service duties at Camp Edwards,
Mass. and various posts within the
seventh
Service
Command.
Hp
was
discharged in October 1945. /
Railroad
UNITED
Bought—Sold—Quoted
PUBLIC
SERVICE, Com.
BUY BONDS of
UNITED PUBLIC UTILITIES, Com,
VICTORY
KEYES FIBRE
Class
A
and
LOAN
Common
EAGLE FIRE INSURANCE CO.
mclaughlin, baird & reuss
6,3 Wall Street, New York 5
BOwling Green 9-8120
Boston
Tele. NY 1-724
Philadelphia
1. h. rothchild &
Members Mew York
CO.
Member of National Association
of Securities Dealers,
52 wall
"
street
HAnover 2-9072
inc.
Hartford
h.
y. c.
5
Tele. NY 1-1293
ONE WALL STREET
TEL.
HANOVER 2-1355
Stock Exchange
NEW YORK S
TELETYPE NY 1-2155
r.i
a:
.J?.
'
)
....
?,
me
i 62
THE COMMERCIAL Sc FINANCIAL CHRONICLE
Number 4444
tion WCrC marked
over
was1
up' but the turn¬
Truman wReconversion
restricted by the dearth
of supply/ Alberta,
Saskatchewan
and Montreal issues were' strong
hut
S
offerings
also. scared.
were
There ;was consequently increased
pressure 6ri the internal section.
By BRUCE WILLIAMS
Iii tbetopsy-turvy world; of tbday commodity-starved countries Dominion bonds and
mining and
refuse willing exporters. Moreover, in the case Of Canada;^ which is industrial
shares
were
free#
anoirialously outside the Sterling area,- Dominion exports are barrrid brought down on the rate, and
frofri access to British Commonwealth countries.
Canada—potential¬ free funds remained at the peak
Working Time.
At his
.
Truman
^
press and radib conference
gave
the following
out
<®>—-———• •
Kingdom.
The crowning
stroke, however, is the imiplied
Suggestion that the Dominion re¬
frain from seeking new markets
for her goods and thereby elimir
nate, competition
with Britain.
Such recommendations
are
the
the
are entirely devoid Of
vision which iS nfecessary to
and
restore, for the universal benefit;
the economic vigor of the British
Commonwealth.
Canada
is
which
the
king-pin of the British community
there is nevertheless rib
in the
basic situation;
points towards the
still
maintenance of the
existing reia4
tionship With the U. $. dollar.
:
product: Of shortsighted bureauc¬
racy
change
change
regard td future pros- j
the termination of the j
With
pects
Ldahr should accenthe growing interest in
Victory
tuate
Canadian
securities
in
this
1
;
<
country, especially as the trend 1
towards
declining
yields
ori•
bank-eligible bonds is increds- i
ingly marked.
of nations.
The
maintained iii all
classes!
6( Canadian external
arid internal bohdS.
Stock orders executed oil the
Montreal and Toronto Stock
fixclidriges,
York Prices.
■j $
or
"at he!
(^- " ---<
Sew
'r'
ferect ^Private Wires to Buffalo,
'' Toronto and Montreal
j
-
LINIOTf
produetidn—MbSt
products
40 Exchange Place, New York 5, N.Y<
;
,
Bell System Teletype NT 1-702-3
CANADIAN BONDS
GOVERNMENT
war
a
oil
Of British af¬
along the path Of dull
negation and blind despair.
Phelps, Feritf & Co., 39 Broad-!
New York: City, announces,
way,
Richard
that
MUNICIPAL
CORPORATION
has;
not have to clash ih
tion; arid
can
continues good. Here are some in¬
dications;
coopera¬
vantageous to establish Canadian
plants in Britain; but any? com¬
pulsion in this direction can be
highly deleterious to Ariglo-Can-
creased, since
VrJ Day.
To¬
employ¬
tal
ment has now
returned
President Truman
to
had
-
has been; less
drastic
anticipated.- However, we are
still in a transition period. The
fapid dehiobiiizatiori of the armed
forces will undoubtedly increase
thr unemployment tbtal Over the
economy
months..
exports can restore a
better balance of foreign trade. If
wofth of
plan is not im¬
war
cancelled
;
released from' actfve
been
With the U: B;
sumed
his
duty
Navy rind has
position
as
a
re¬
:
available.. ,-v
the
surrender
r
/
V
.
war
lifted
•
has
a
of
Rejoins Georgeson
Georgesbri
universal detriment.
New
Turning to tlie market fori the
past Week* previous anticipations
of strong demand for high grades
within 10 years Were fully real¬
ized. Prices throughout this sec¬
ASa C.
York
52
Wall Street,^
has been
from "active
Forces
^Cri.,
City," arinohrices that
and
released
iS
55
from
a
most
the
Wartime
war.
About
wartime
export
85%
controls
of
the
this
decrease
have
fields,
been
in
removed
but
Inflationary pressures are still
great, and danger signals pointing
to a further building tip through
the winter and spring are the rise
of real estate, wholesale and raw
peak of 650. ODT .has 14 orders
as compared with 3,050
during
since the
increases have
not been allowed to affect price
ceilings or costs to the United
States, except in some specific and
narrowly defined cases to correct
maladjustments or inequities.
agairi associated- standing,
With them.
0.3 of 1%
of Japan compared with
Some
salaries
controls were
hundred items from
price
control, removed all rationing ex¬
cept for sugar and tires, and com¬
pleted the pricing of reconversion
goods almost 100%. 6pA has re¬
duced orders and regulations on
to
a
time, however, is due to the sea¬
prices.
Direct"" controls over wages and
the
books
•
rise of approximately 1.3% in a
war.
day ' after Japan sur¬
rendered. OPA has removed sev¬
its
duty with the Armed
•'
sonal decrease in some food
eral
Huff
: ■>'
•
comparable period after the last
of Wartime Controls—
manpower
declined
surrender
/ ■'•
■,
',
Stabilisation—The cost of living
contracts have been
since
Lifting
All
general
partner in the firm.
settled.
settled
cases
1
one-third
of the 122,000 war contracts can¬
celled since V-J Day have been
; \
dispute
through Nov.,24 numbered 2,821,
workers.
Time lost through work stoppages
since August is estimated at 0.76
of 1% of the total working time
Approximately
Japan.
Richard E. Whitcomb
Labor
Recdiivefsiori-7-The job of involving about 1,150,000
the Bretton Woods
British
couraged and assisted. If the con¬
trary policy is pursued the tre¬
mendous Canadian Capacity for
924 threatened strikes were avert¬
ed, involving about 400,000 work¬
ers; and 868 strikes were settled,
involving about 525,000 workers.
continue at .this pace/
Plant
On the other hand, the door to
cooperation is wide open.
Cariadian credit is freely available un¬
plemented it would be natural and
logical for Canada to be included
in
the
Sterling area, thereby
strengthening the "hard currency"
position of this group! and per¬
mitting freer dealings with the
dollar area;
Finally, the natural
flow to Canada of British industry
and technical skills should be en¬
upsurge of strikes since V-J
Day. The increase has been due in
part td the fact that all parties
held
their grievances
in check
during the war and observed the
no-strike
pledge.
New
strikes
since August total approximately
1,500, involving about 1,500,000
workers, During the same time
an
than
reconverting our plants from war
to peace is Virtually completed.
93%
of
all
plants have
been
cleared in 60 dayi or less after re¬
quest. Two-thirds of these plants
Were cleared within 40 days of
less. Twenty-seven billion dollars'
til
Labor Disputes—There has been
so far
is less
expected. This
been
that the disruption of our
means
to
general.
relations in
Retail sales, up 10% now as
compared with the same period5
last year; steel ingot production,
back up to 82% capacity today as
compared with 60% capacity right
after V-J Day; electric power pro¬
duction, now only 14% below the
wartime peak.
<
>
,
,
tion. In some caseS it Oari be ad¬
trade
;
Business Activity—Business
During these first iOOf days, 3,500,000 rnen and women have been
demobilized. We have stepped the
rate up to 50,000 a day, and expect
competi¬
thrive in
half times the 1939 rate.
tivities has in¬
next few.
British and Canadian industries
eXparisiori Will be Stifled to the
.
Whitcomb
doctrinaire course
.
PROVINCIAL
E.
fairs is
do
war
Unemployment
j
ihetrii-
in non-war 0c-4
than
,•«>•«»»
peacetime
already in produe-
working trades on which we depehd for most of our consumer
durable goods are in such shape
that they expect, by the middle of
1946 to Ship goods at two and one-
plants has niow
been complet¬
ed except
in
the shipyards,"
Employment
per
unsiirpassecr and
are
tiori or ready to roll. The
the V-j Day level and is expected
to continue 10 risO.
Canadian record during,
Capita basis
revOaled
promise of future capabilities
that should havC givert fresh
hope to war Wearied Britain. It
would appear hoWOvOf that the
Was
adian
Gkpokatioti
t
the
——
—
16% of wartime
import controls.
The great part
of the layoffs
from
President Harry S.
1'
been lifted. And
.
CANADIAN SECURITIES
Nov. 29,
on
statement regarding reconversion:
iriost powerful economic unit Of the British fempire—is hot pOr- level 6i SM/a % in spite of offerf
hiitted to play her proper role in the economic rehabilitation of ings of dividend proceeds.
AS
Britairi. Instead,' previous intima-6*
usual the persisterice of strength conversion, We
tions have developed into defi- nite recommendations that if Can¬ of the "free" Canadian dollar gave have riiade
ada wishes to maintain her Brit¬ rise to "parity" rumors. Although the following
ish
'
markets,
Canadian
plants there is every reason for the con4 progress;
should
be ; established
in
the tinued firmness of Canadian eXf
Manpower—
United
Manpower, Plant
Reconversion and Production &hd Lifting df Wartime Controls.
Holds
Less Through Strikes &im Aogrisf Has Been Less Tkn
l% of Total
In the first
100 days Of re¬
ly the
ftogxess
In Press and Radio Conference He Tells Position of
»r
.
2715
materials
of
prices.
We
tinue to hold the line.
have
must con¬
We cannot
permit inflation.
CANADIAN STOCKS
n
OPA "Cost Absorption
A. E. AMES & CO.
'INCORPORATED
Stabilization Director Collet Informs OPA Administrator Bowies That to
Allow Current Cos! Increases
to Be Automatically Translated Into
Higher Ceiling Prices Would Be Inconsistent With Executive Orders
9599 add 9651. Says Actual Operating. CdstS in Transition Period
Under Restricted Volume Production Are Not Adequate to Base Fair-
TWO WALL STREET
NEW
YORK S, N. Y.
RECTOR 2-7231
NY-1-1045
Incorporated<
,
ness
14 Wall
Street, New York 6
of Existing Ceilings. /'
V
■■
■
The Office of Price Administration released
on
Nov. 29 the text
Stabilization Administrator John C. Collet explain¬
ing the directive! filed on Nov. 28 with the Federal Register. This
directive interprets the application^ of the Administration's, wageprice policy to the OPA's reconversion pricing formula.
of the letter from
.
CANADIAN
STOCKS
Industrials
j
The text of the letter follows:
Buy Victory Bonds
You have asked for a
ruling pn
important question concerning
the application of the reconver¬
sion and similar pricing formulas.
The question is whether, in the
application of these formulas, cur¬
<^dost increase cannot be absorbed.
In
an
Banks
Bought—Sold——Quoted
CHARLES KING & CO.
Members Toronto Stock
Dear Mr. Bowles:
Sxchdntt
61 Broadway* New York 6, N. Y
WHitehall 4-8980
Direct private wire# to
and Montreal
Tdforito
Taylor, Deale
64 WALL
&
Company
STREET, NEW VORK 5
WHitehall 3 -1874
my
judgment
rent
cost
increases
resulted in¬
^
variably or automatically in high¬
ceiling prices, without inquiry
of the sellers in¬
er
materials
into the ability
resulting from
increase o£ ap¬
proved
wage
increases should
be automatically translated into
higher ceiling prices or whether
ceiling prices should be increased
only if it is determined that the
pricing
of the reconversion program, cur¬
rent cost increases
price
any
policy under which, at this stage
volved to absorb them, would be
inconsistent with the purposes both
of
Executive Orders 9599 and
9651 arid, of the stabilization laws.
(Continued on page 2717)'
JuamMas&toi&i\,•.
?j!*ll.To!.niV
.
fx,'-
:.h\':
''i
CHRONICLE
THE COMMERCIAL & FINANCIAL
Thursday, December 6, 1945
Hemphill, Noyes & Co. Celebrates Thirty I Years iir Investment Business
Four
of
sons
Noyes*
partners of Hemphill,
senior
four
&
Co.,
15 Broad Street, New York
City,
bankers, who-recently were discharged from the Navy arid Army, began following in
footsteps of their fathers when they started work Wednesday with that firm as if celebrated its
thirtieth anniversary.
All of the sons are 28 yea Is old.
investment
the
By
DUTTON;
JOHN
.
Three
Some More
Here
Regimentation of Securities Dealers
on
are some
of the opinions that
have been expressed by
small
fourth
Class
of the
was
of
young
received
'39,
had achieved the rank of Lieu tenant'Commander in the Navy and the
in the Army. Jan sen Noyes, Jr., a graduate of Cornell University,
men
Lieutenant
First
a
commission
a
as
ensign in
September
1941
saw
considerable action in
Jansen
Noyes; .Lieut.-Comdr.
and
the
suggestion made in this column last week that dealers organize a protective association.
By small, we mean houses that are not members
of any exchange, nor large enough to underwrite issues and tha
have an organization of less than 10 principals and salesmen combined.
There seems to be a general agreement that any new organiza¬
tion that might be formed have as its main purpose the protection of
the welfare of the retail securities dealers primarily interested in the
"over-the-counter" market; that it should be composed and run
r
mainly by non-mem,ber firms and small retail organizations, even
though larger firms would be admitted. The consensus of opinion
seems to be that the larger firms are adequately represented by exist¬
ing organizations. The dealers, too, urge that the governing body
be composed of representatives of firms having GEOGRAPHICAL,
DIVERSIFICATION on the theory, as one expressed it that "New
:YorkvCity may be the core of the financial apple—but it's not the
^vvhole apple—and neither, is Chicago jor San Francisco."
Now here are some of the specific suggestions for such ah or¬
retail
different parts of the country on
securities dealers from
•
-
"
•
ganization which might be included in its organizational set-up and
its objectives.
One dealer asked us why there isn't some place where he could
to get interpretations of new laws and regulations that affect his
He said he didn't want to go near the SEC.
In fact, he
said that from his experience, most dealers wanted to stay away from
go
-business.
-
contact with the offices of the commission.
If he had a question
point about which he was not clear regarding the Securities
.'Laws he would be glad to pay for such a service.
He thought if an
-any
on
'J
some
had the real welfare of this in¬
organization was ever formed that
dustry at heart, that they could have such a service provided,, and
that he would be of the opinion that he was getting something besides
i
•
-
sandwiches, pickles and cake for his membership:- We understand
that no legal advice can be given by any such organization, BUT IN^
TERPRETATIONS OF RULINGS AND LAWS COULD BE SENT TO
MEMBERS, IN LANGUAGE THAT THEY COULD UNDERSTAND,:
'AND THIS IS PERFECTLY, PERMISSIBLE UNDER THE STAT-;
'-UTES.
'..
■.
■"">•'■■■'■■
v.;r
Another dealer thought
r
it
■'
'•
ridiculous for the NASD to make
was
Standing
(L. to R.)
Stanton
are:
Griffis.
Griffis; Lieut. N ixon
AUS;
of mark-up practices of houses handling institutional busi-| Tansent Noyes,. Jr„ USNR; flarold C. Strong; Clifford .Hemphill, and Lieut. Comdr. Clifford Hem¬
phill, Jr., USNR. Lieut. Comdr. Harold C. Strong, ; Jr,, USNR; missed the ceremony because of a sudden
ness, listed business where-brokerage charges were simply added;
v.; :>v-\ <*£ f'A. ■
v7-X
municipal issues,-highly active unlisted stocks (such as insurance and, illness that sent him to the. hospital. ;j/^
bank shares) and also the inactive smaller issues, lump the whole
thing together and strike an average, of mark-up. " WE AGREE WITH
erable and varied action with-his
and head of the Central, War De¬
■HIM
SUCH PROCEDURE IS NOT ONLY UNSCIENTIFIC FROM both the Atlantic and the Pacific1.
«'
His first assignment was with; the
partment Film Library. V*
' i
destroyer; ranging from "convoy
ANY STATISTICAL VIEWPOINT—BUT THE RESULT CONSISTS
U. S. Destroyer Fitch under con-r
Clifford Hemphill, Jr., a mem¬ work within the Arctic Circle, 'to
OF A DISTORTION OF FACT WHICH HAS BEEN USED BY THE,
structionHn Boston Navy; YardL ber of the class of '41 of the Unif
assisting the landing of the Ma¬
OFFICIALS OF THE NASD TO ATTEMPT TO UNDERMINE THE
versity
of Virginia, joined
the rines at Guadalcanal and acting as
STANDARD MARK-UPS OF THE SMALL DEALERS.
A survey, During his second year on her he
Naval Aviation. Service in
1940 a screen. for the: famous Doolittle
served
as Chief Engineer. He was
: of the past 50 or 75 sales of 1,000 small retail dealers belonging to
later transferred to the jLJ. S. De+
and
a
.year
later..; received his raid on Tokyo. Some of this de¬
their own organization—conducted,; by themselves without fear of
stroyer Haraden, on duty in the wings and was commissioned an stroyer^ action - and adventures
Pacific, as its Chief Engineer. At ensign. He served as an instruc¬ are described in part in the book,
a
survey
-
-
'
•
;
the time of his
discharge, Lieuten*
Noyes. was as¬
signed to the Cruiser Little Rock.
Commander
ant
Lipe - Rollway Corporation
:
-
Class "A" Stock.".-."
on
request
;
X
:
Herrick,Waddell & Co., Inc.
v
55 LIBERTY
on
Catalina
seaplanes
at
"Condition Red," written by Com¬
mander
Bell.
Lt.
Commander
Nixon
outbreak
Circular
tor
Jacksonville, Fla., from June 1941
to October 1942. He became a pa¬
Strong was subsequently brought
back and made executive officer
Griffis,-the son of Stanf. trol plane commander and trained
on a
new
Bath destroyer of the
Task Force Squadron 3. He also
ton Griff is, was a member, of the
largest type,} He was in a; number
class of '40 of Cornell University. served as operations officer at Key
of
other paval engagements in the
West, Fla., assigned to Night At-'
He joined Squadron A of the Na¬
Southwest Pacific and has seven
tack and Combat Training Unit,
tional Guard in 1940 and after the
■
Convertible $1!< Preferred Stock
-
,
STREET, NEW YORK 5, N. Y.
of
became
war
ma¬
a
Detachment 5. At the time of his
chine gunner in the 101st Cavalry
discharge, vhe
Regiment. He was transferred to
the
Signal
Corps. Photographic
commander.
Center
graduated from Yale in 1940 and
joined the Navy in July of that
year. He was attached to the de¬
stroyer U.S.S. Grayson for the
war and eventually rose to be its
time
crew
eral
in
1942..
abroad
that
as
He
spent
member
a
started
work
Eisenhower's
some
of the
on
Gen¬
Harold
was
Clark
,
.
Strong,
"The
True Glory." At the time of his
discharge he was a first lieutenant I executive officer. He
picture
lieutenant
a
saw
,
Jr.,
;
;
was
consid-
battle
stars..
bers
of the
For Dealers
Only:
a
than Mr.
now
last
Missouri State Life Insurance Co.
Bought
—
Sold
—
Quoted
Wallace Fulton
inquisition
the
upon
NASD.
...V.."-
;
different set of percentages of mark-up
proudly parades as the result of his
private affairs of the membership of the
"■
i;"
Then another said: "How about court protection against unfair
charges brought against dealers by the NASD or SEC?"
There are
cases
of smaller dealers throughout the country that have
been
blackjacked into submission
just because they haven't had the
financial re sources to fight.
Why shouldn't such an organization
have its own fair conduct committee?
If a dealer is brought up on
charges by any governmental or quasi-governmental agency, why
shouldn't this dealer have some place ^yhere he could go to plead his
side of the matter?
Why not have a committee that would hear both
sides of such a case? If the dealer was in the wrong in the minds of
.
"
Teletype:
f 1-1287
NX\
Est.
j926
-
Members N. Y. Security Dealers Ass'n
120
1-1288
\
BROADWAY, NEW YORK 5
Telephone:
RE. 2-8700
'
.
.
.
his own organization he would receive no assistance.
If he had
justification for his-stand, if his rights were being impaired, if he
being KICKED AROUND, then he would receive assistance.
Not
only advice, but financial support, and a CHANCE FOR HIS DAY IN
COURT.
This dealer said he'd be glad to "kick-in" his share to
Co.,
&
New York
<
mem¬
Stock Ex¬
leading Ex¬
changes, opened its doors for busi¬
ness
thirty years ago in a tiny
change .and
other
office at 37 Wall Street, to oper¬
ate on a small capital which the
members
young
of the firm had
been able to borrow. During these
it has grown to- become
years
persecution—would show
•
Hemphill, Noyes
a
leading investment banking firm
with
one
of the large capital ac¬
counts
in
headed
or
Wall
Street.
It
in
participated
has
many ,;
billion dollars worth of corporate
and
municipal financing and to¬
day is banker for more than one
industrial
hundred
its
and
partners
corporations
serve
Boards of Directors of
on
of them.
C. P.
the
twenty-five
■
:
Young Elected
was
are
interested
in
offerings
unlisted securities for distribution
defray the expenses of such a defense AND THAT IT WAS TOO
HAD WE DIDN'T HAVE SUCH AN ORGANIZATION TO HELP THE
SMALL
DEALER
Thinking back ,.".
through
our
organization.
we can
OCCASIONS IN
SEVERAL
are
just
THE PAST.
P.
Air
Young,; previously ;a
Colonel in
the Army
Corps, has been elected a vice
president of First Colony Corpor¬
through the; ation, 70 Pine Street, New York
remember several such'instances ourselves.
few of the thoughts that are going
the retail securities dealers around the country.
These
minds of
UPON
Cecil
Lieutenant
a
There is
a
City.
Mr.
Young
was
executive
possibly you too might have, vice president and director of
few.
If you do, send them along.
This column will respect your
Wickwire Spencer Aviation Cor¬
confidence.
There is only one thing wrong with the securities deal-:
ers of this country
for years-they have lacked courage.
But it poration; executive vice president
seems that slowly they are beginning to stiffen their backbone 5nd • and director of Wick wire Spencer
lot
more room
for
good suggestions'.
.
.
a
DENAULT
,
Russ
U
CO.
Building, San Francisco 4
Telephone EXbrook 7484
.
are
beeinnin* to
hardest.
ness
.
.
.
.
The firs* nluntm
aiy^vs the Metallurgical Corporation; and 'a
would be easy. What this busir :
organization that has THE....
PROTECTION OF director of; Wickwire Spencer
AS ITS FIRST AND PRIMARY OBJECTIVE, il Steel .Company,' : L-.
:
assert themselves.
afterthat the swimming
needs „
is
a
a
national
THE RETAIL DEALER
.
2717
for
mendation
Savings and'Loan Banks Assets
Mount
ership loans to veterans totalling
$300,000 each before V-E or V-J
Days had had time to bring any
significant number of servicemen
;
home.
The
:
largest gain in assets in a single year which the savings and
co-operative bank system of the nation has ever experi-
•
enced
>
achievem ent
amount to 7.8%
1944, H. F.
Cellarius, Cin¬
statistical
States
'
ings and Loan
League,
re¬
ported to the
-
ecutive
cil- i
ex¬
coun¬
annual
n
meeting on
Nov. 29. The
460,637 had
brought the
$7,479,750,657
as
of
Dec.
31,
*
•
increase thaii
>
chusetts-was
we
$593,000,000
shall be over
others
58,000,00(7,000 by the close of 1945,"
'; he said.
['y*,; y'*'
•
.'
>'
and
we
had
that
associations
be
$500,000,000,
over.
in associations has been very con¬
siderably
three
Illinois,
Pennsylvania and California.
,
augmented
holdings
of
Liquid assets
and
cash
bonds
one-third
about
or
more
of
as compared with ap¬
proximately 8% in prewar years."
Upholds 0PA "Cost
Absorption" Principle
ing Projects Be Conducted Locally and With Private Capital, but Urges
!
Planning and Research. Calls Attention to
\
30
the
to
final
the
of
session
League's executive council meet¬
ing in the Palmer House in Chi¬
cago. Lloyd I. Tilton, Santa Bar¬
bara, California, chairman of the
committee, said that costs of new
construction are Vsomething
like
level.
1935-1939
the
Reporting for the committee on
Home Taxation, B. E. Buckmhster,
Tacoma,
Washington, said
that
prospects
for - huge
volume
of
residential
construction
high
costs add
ance
to
the question
of
taxes
The
felt
committee
predict
liow
and
said
that
on
soon' residential
construction would
move
forward,
the
pickup to date
has lagged materially behind what
had been forecast.
^ ?
"In
some
communities
a
construction
"In
some
commercial
jeal
:
including
1.
are
stations, has been given prece¬
dence over home building.""
gas
Slum
.
2.
-
•
-
'
'
'
'
'
guaranteed for veterans of
Private
cen¬
of
the
existence.
/
loan
and
of
ings -and
spent
of
his
©ity.
League,
has
and
civic"
numerous
agencies in his home
city including the Tax-Payers De-'
League of San Antonio.
fense
leagues
savings and
J. A. Kiser Returns
institu-
tions.
Henry P.
Irr
Out--
standing participation of his
To
asso-
ciationin making veterans' home
loans
under
the
G.
I'.
Bill
of
Rights
in
the last year
since the
Tower,
was
inaugurated
has
placed him among the nationally
recognized leaders of the business.
States Savings
League, this past year.
Mr.
Irr
is
Maryland
mission
Chairman
of
Postwar
on
is
affiliateci with
of
tain
the
job
of planning
and
was
the
rank
enlisted
1937^
as
tioned,
im¬
as
junior
a
1.
Cap-,
privatel
a
successively promoted to
of
Captain., He
officer
Bombardier
the
the
Kiser
intelligence
Better Baltimore Committee which
has
them
executive, effective Dec.
the
Recon¬
Chairman
also
con-j
February, 1942, has been placed:
on
inactive
duty, and is again T
and
He
nor.
Kiser, who was
with the firm from
to
Planning Com¬
of
the .Maryland
and
A.
nected
State
Commission
Kiser
Circle
Captain \
that
announce
Julian
Loan
and
Kiser, Colin Co.
INDIANAPOLIS,, IND.
Cohn & Schumaker,
Inc.,
program
Group
at various
was
with
an
380th
(
and
was
sta-
times
in
New:
Guinea, Australia, the Philippines *
provements to be undertaken Jri
this city along the lines of arterial
and Okinawa.
'
.
"
traffic, play grounds, slum clear4
ancc,
etc. ' ■
parking lots,
>.
,
Capt. Davis With Rollins
markets,
new
■
"
.
Captain
During the war yegrs he was a
member of the executive commit¬
years
Committee,
Air
has
also
sale of
and
his
association
been
active
charter.
in
this
He has
the
organization
thrift
and
*
lead¬
a
circles
home
i
with
E.
H.
Rollins
York City/
■>,
r
.hi-—'■
Stein
having seryed as Presi¬
Maryland League of
Building and Loan Associations in
1939, and as President of the
of
?
duty and has become
Incorporated, 40 Wall Street, t
in
financing
business
dent
:
released
been
'
Boyce Add
King to Trading Dept.
its federal
long been
the Army
has
,
Stein Bros. &
Building and Loan Associa¬
before it attained
re¬
Sons
Pennsylvania Avenue Perma¬
tion
Davis,
New
i,ifi
nent
D.
with
Europe
associated
He has been active
manager, of
the Balitmore Federal for 23 years
dating from the time when if was
er
in
Forces/
from
outstanding in its
bonds to thevpublic.
war
Joseph
cently returned from nearly two :
tee of the Maryland War Finance
the
THIRD
This
'
.
1
holds
*
Bros,
&
.*
Boyce,
14
•
I
Wall i
Street, New York City, announce
].
that Francis E. King, Jr. has be-
i
associated -
come
with
•
in
them
,
their Trading Department.
United
Maximum
under
the
prices
NATION
THE
on
the West Coast of Florida,
States
Charter No.
3.
Resources Oct. 31, 1945 ; '
,
-
IN
Association, largest
-
$9,091^310.98
*
*
..
1^..
:
•
..
'
.;
^
/
J
-
/
•
^
Inquiries Invited From Institutional Investors
'
FEDERAL
FIR
principle,
I
am
today
sending to the Federal Register a
directive providing as follows:■
enterprise has, does
Loan
director of
a
and welfare
local and
loan
general
f
native
a
has
state
order, however, that there will be
no
misunderstanding as to the
:
is
and
was one of
organizers of the Texas Sav¬
been
Banks,
;
McAllister
Antonio
the
Federal Home
Loan
and
1921.„In.1927-1928, he
and
banks,
Savings
organized
the
San Antonio
Building and Loan Association/
a
$7 million institution, in
associa¬
coopera-
States
now
3,700
tive
precise answers to these
problems, as I have said, ought to
be worked out in your office.
In
-
W.
He
of
tions,
Mr.
3an
organiza¬
tion"; of
savings
United
entire business career in that
The
Both
" Walter
of
SAVINGS AND LOAN ASSOCIATION
ST.
of
determined
PETERSBURG
Raleigh
f
reconversion
pricing
formula approved tin Directive
and will provide better housing at
Servicemen's
Readjustment
Act
No. 78 (10 F.R. 11074) or under
lower cost than public> housing.
have
now
reached r 27,000! and
any other pricing formula de,4. Unsubsidized public housing
some 22,000 have been
made by
! signed:for use during an
insayings and loan associations and is unsatisfactory as compared with
; teiim
period until reliable
co-operative banks. Treating of. privately built; housing both as to •'
operating
costs
are?
available,
thjej difficulties felt in some quar¬ social and economic qualifications.
shall not be permitted^ to reters about fitting in with this loan
5. Where.' subsidies are neces¬
fleet
any ; increase
int .legal
program, the report continued:
sary
for
decent
housing
they Jj.
prices of materials authorized
"We believe that the questions should be provided at the indi¬
! or
occurring hereafter; or any
bQth of appraisals and the loan vidual instead of the.community
increase in wage of- salary- rates
procedures will be- satisfactorily level. V- i" V •• • - r
j
; approved
by 'the" appropriate
solved as the business develops
6. The use of public funds for
wage T or
salary
stabilization
arjid that these problems .will be housing should be confined to re¬ f I agency or instituted hereafter,
search
and
statistical
studies
and
mjejfc and overcome just as they'
unless the Price Administrator
were in the case of HOLC loans
for the acquisition of land for ur¬
I finds that the reflection of such
and FHA-insured loans.";
ban
redevelopment as. provided :! increases is necessary to mainiThe Committee on Home Taxaby law in various states.
: i tain
generally fair and equit3.
World War II under terms of the
a
circumstances
and housing
distinct prob¬
•
tury
this
the
'
than
more
existing ceilings. . In these
an
important fac¬
tor, among others, to be taken into
account is the prospective produc¬
tion rate in 1946 in the particular
industry or firm.
•
'
!
ness
•;
problems are local in
character, rather than national.
do
of production, afford an adequate
basis on which to judge the fair¬
on
and
.oper¬
not,\ during the
transition period to a normal rate
costs
Chicago.
Loan League in 1941.
League
half
the
'•*/
|p these industries actual
ating
clearance
separate
lems:
;The committee said that home
loans
,
')
T
should appropriately be
worked out in your office. Special
standards, of course, will be nec¬
essary in reconversion industries.
factors
,V
•:
a
The standards Tor deciding this
i
Housing, renorting
through
its
chairman,
E. L. Barnett, Santa Rosa, Cali¬
fornia, recommended adoption by
the League of a six-plank plat¬
form, setting forth that:
industrial. and
buildiifg,
■
The Committee
labor," it reported.
areas
.
from
question
families
tax rates.
scarcity of building materials con¬
tinues, in others there is little or
no
..•!
important
but
in
Southeastern Group Conference of
head
other indus¬
The
version.
will remain in
the cities to which industry called
them is that of property taxation.
Relatively high taxes will discour¬
age such families from undertak¬
ing home ownership or oven re¬
maining as tenants
since high
rentals are associated with high
migrant
J
.
v
the
as
ally fair and equitable prices or to
avoid hardship impending recon¬
which wiir determine whether im¬
difficult
it
of
well
determination,
ori
the
facts
of
the
particular
case, that a price increase is nec¬
essary either to maintain gener¬
one
committee.
"One
special import¬
a
homes at this time..
to--'
the
these
at
mula
caught between taxes
increased assessments,
hand, ;and increased
living costs, and in the case of
rental
properties,.- a ceiling on
rents," reported B. E. Buckmaster,
Tacoma, Washington, chairman of
the
as
price increases, howTver, should not result from the
operation of a^ny mechanical for¬
based upon
on
2715)
increases, of course,
require price increases in re-,
tries.
themselves
,
31.5% ; above
Savings and Loan League's
page
cost
Conversion
greater needfor recasting the
general property tax.•
/ :
t
"Property
owners
now
find
Nov.
Some
will
Increasing Reserves Built Up by Savings and Loan Associations.
on
(Continued from
meeting
IS
Development, both
by appointment from the Gover-
by Savings and Loan Associations, and Predicts Questions of
Appraisals and Loan Procedures Will Be Satisfactorily Solved. Calls
for Revision of Local Property Taxation and Recommends That Hous¬
reported
Irr
struction
Financed
Policies
in
a
today account
total assets
nomic
Mr;
the first Marylander
to
be
United
increased
bonds.
Savings and Loan League Committees Report Likelihood of Continuation
of High Building Costs, Reports Bulk of Veterans Building Loans Are
Building costs at least for the foreseeable future are likely to
annual
through
for
remain relatively high, the United States
Committee on Trends and Eco-~
their
He has been Vice-President of the
in
?'
League at
during the
past two or three years by ithe
rapid gain in liquidity position
government
Government Assistance in
Loan
McAllister, President of the San Antonio Building and Loan Asso¬
ciation, and former Vice-Chairman of the League's Postwar Progress
Committee, was chosen Vice-President of the Association.
;
of the
recommends
with
third
and
ute," said E, A, Minier, Newark,
New Jersey, chairman. "It strongly
of
close
a
Henry P. Irr, President of the Baltimore Federal Savings and
Association, was elected President of the United States Savings"
Loah
elected
»
last; I think there is
question that
no
un¬
.
1944, he said.
"Considering that the year in
which we are now operating has
been one of even more spectacular
,
very
.
business up to
■>
a
-
gain of $886-
H. F. Cellarius
have
savings and
equipped to offer complete service
loan institutions and co-operative
I to veterans and that they so pub¬
banks points to a readiness to play
licize such service as being availan
unprecedented part 1 in
the
! able under the terms of the Serv¬
home ownership expansion of the
icemen's Readjustment Act
next decade. Our financial posi¬
The steadily strengthening re¬
tion should also gain for us a new
serve
position of the savings and
high rank among the savings in¬
loan
associations and co-operative
stitutions of the nation.
banks was pointed to by the Com¬
"> "In a period of growth and re¬
mittee
on
Insurance of Savings
construction the
position of the
Accounts. Horace Wilson, Los An¬
various states in the savings and
geles, chairman„said that reserves
loan system are likely to change
and
surplus make up : approxi¬
frequently. As of the close of last
mately 8% of association assets
year, Ohio maintained not only its
and
that approximately 30%
of
lead but also its distinction as the
ithe total net earnings-of the asso¬
only billion dollar state. The sec¬
ciations are allocated each year to
ond ranking state is
now
New
reserve accounts.
York which had gone over $600,i
"Furthermore the safety factor
000,000 by the end of 1944. Massa¬
Sav¬
League's
outlook
Savings and Loan league
Elects Henry P. In President
veterans
of total assets in
spite of the rapid growth we have
experienced. Every factor in the
cinnati, secre¬
tary-treasurer
of the United
U. S.
believes' that
.
usual-opportunity to serve the
as provided by the stat¬
"Surplus and undivided profits
in
••..
committee
institutions
our
its
was
V-.'
•
"This
and
;
partici¬
Type which had made home own¬
Secretary Cellarius of Savings and Loan League Says 1945 Shows Larg¬
est Gain
Yet, Amounting to $886,460,637. Expects an Aggregate of
$8 Billions in Assets by End of Year.
Ohio Leads, With New York
Second, and Massachusetts a Close Third.
loan
expanded
pation in thq home, lending pro¬
gram to veterans tinder the Serv¬
icemen's Readjustment Act,
pointed to the record of five in¬
stitutions of the savings and loan
W.
Greene,
First Federal Bldg.
Pres.
St. Petersburg 4, Fla.
-
.
Franklin
'
Feder
a
I
„.
.
SAVINGS
of Richmond
-
^ \ <J,") '^*2 Assets over $6,500,000.00
.'
1
never
was
a
r-
•
The Insured Section Committee
of the League in a
vigorous
reeom-
m
able prices or to prevent hardship impeding reconversion.:
N
f,
^
h
|
RICHMOND
fMiffiliiiiiiiiiiiimiipiM
.
.
.
Of
-
.
Trust
17
.
.
Fundi
.
ErE
I
m
\
g§
!
; \
We- Invito Your .Inquiry On * - ^
Investment
f
; tion
- said
that
there^ has
-i been a time when there
LOAN -A SSOCIATIO N
AN D
>
-
,
.
.
VIRGINIA
| }
THE COMMERCIAL & FINANCIAL
2718
Foz New "Economic
(Continued from
can't
stop it
chine
and
as
we
page 2713)
would
a
ma¬
examine it and deter*
mine what is
before run¬
wrong
ning it again.
"I think the root of our
present
troubles, in addition to the threat
of inflation, is our dependence up¬
on
others without
a
clear compre¬
hension of what this implies,Mr.
Robertson said, adding:
,
"'Striking
in
workmen
crowds
exercise rights which no individ¬
ual has. In other words, 10 or 10,000
something as their
right which one man could not do
without committing a crime. This
Is now accepted in all society, and
we commonly use the phrase, 'the
right to strike/ Obviously, it is a
vague term and needs definition.
Society cannot safely be at the
mercy of groups of men or organi¬
may
do
zations. Freedom has taken bn a
new
definition.
"To
keep going, and go we must,
the modern specialized workman
must know his
rights and duties in
terms of modern social needs. It
is equally imperative that the em¬
ployer know his rights and duties
in terms of social needs. All Of us,
whether. employer
or
employe,
muot recognize and accept the fact
that certain rights and duties are
fair, reasonable, and necessary to
the well-being of society.
"As far
>
I
as
am
concerned, the
who takes from me by force
what is not rightly his is
even if a yote is taken
if cis number is legion.
may be exercised by the
well as by one.
a
robber
it or
on
Tyranny
many as
"Here is the point where a com¬
"We need to awaken to the fact
that, there is no end to the busi¬
ness organizations or groups of
people who can, by the simple act
of stopping work and preventing
others from doing their jobs, hold
the rest of society and extract
up
penalty
any
they wish. We need
standard
of
understanding
found if we are to escape
the disunity inherent in the diver¬
sity of our interests. Due to the
confusion of rights without duties,
jthe time" of citizens is taken up
in disputes which cannot be set¬
mon
must be
i
tled
"The thought of a few men hay¬
ing control of the atomic bomb
Jogs us into a realization that their
power should be curbed, but what
because
of
Jack of accepted
to acknowledge duties as well as
standards. Alleged
rights,"
sisted
Unless there is public acceptance
as well as rights, the na¬
tional economy will "slow down
by right checkmating right until
*
we
are
mpre
literally doing,
and
more
and producing less and less
Is it not time that we,
ple, insist
on everyone
r Organization
chronic that we may- ultimately
run down' entirely," Mr. Robert¬
in the end order is of necessity
haying
your
same
business ryinefl
group
of
men
pre¬
son
asserted. Re continued:
;
of America
„
•
.
Canada, Both Foreign an<|
Domestic, and Points Out That as Far Rack as 1937, Canadian Invest¬
ment Was About $18 BiRion of Which. Almost Two-Thirds Was Held
at Home.
Points Out That Canada's Financing of Both WorldWas Dope Almost Entirely by Canadians, Despite Fact That Govern*
Debt in Five Years of War Increased by Over $J3 Billions, o*
$1,100 per Capita. Holds Canada Is Now Independent of Foreign Capi¬
tal, \>ut Is Proud to Have Foreign Capita! Flow to |t and Asserts Cm*
dian Industries Are Financially Strongejr Than Ever, and That Qppor*
tunities There for Profitable Investment Are Very Fayorghle,
]
ment
The investment business in Canada is comparatively new.
to
Prior
War: I, Canada.'? financing requirements were furnishecjj
m a
1 n 1 y®>
'1
■—■
t7'«i
through Brit- organization devised
to
secure*
; ish/ capital,
Widespread purchase of "bonds.f
Wprld
■
..
With
lesser
amounts from
the United
pyerlooked
ing your business blown to atoms
j
Mr. DuffieId Traces Growth of Investment in
waiting its turn? A little* unrest
and confusion may be
..1
x.
yicerPresident, Wood, Gundy & Co., Ltd.
•,
/
Retiring Chairman, Canadian Group, Investment Bankers Association
and every
in our
By A. R. DUFFIELD
■
.
Standing in line, and
and the unbalance will become so
and
Business in Canada
-v.
the peo¬
th^e between hav¬
by "the
/
rights are. in¬
upon. Duties are unknown.
Liberty is threatened.
- ;
T
of duties
«
difference is
will be lost.
Thursday, December 6,
Outlook for Investment
Stability" Formula
venting you from using your prop¬
erty? In1 both cases you suffer
equal loss: We need to realize that
power to destroy must be curbed
wherever it is found or freedom
man
tHRONICLE
States:
swiftly changing ^worid^ but
It was
■
Following the lesjt war, Canada
not only continued to attractcapi-7!
tal from herrown citizens 7 but.
from foreign - investors "as well/
,
with the out- United' States—in her newlyfac-/
;
break, of the niiirfd panaritvTff a great eaoital—
the basic element in our economic
last war ? that
stability/'
/domestic fi- Orients in Canada from approxi...
77*—--"i.a'-3"
:
nancing be- mately $1,800,000,000 to $4,000,"•.V.camje''-:-.sighifi7 000,000. British' capital, however,,
/'pa'ut.",;'•[ remained practically,; unchanged
In. Nqvem- eL about $2,790,000,000. Domestic
:ber,19I5Cah- capital increased tp around $1177
/ada's; f i r s t 000,000,090.
/
. •
:
r
)
The latest; official estimate^for
/large .^ public
loan •' had
an
capital invested-in/the Vbondslpf
objective of Canadian governments and muni¬
^
$50,000,000, cipalities; investments in rail-*
A. C. puffield
and
over
ways,
manufacturing
concerns,6
|!100,000,000 was obtained from public utilities, trading establish-*
aboUt^?5,000 subscriptions. From mentSj_ihiines and other industries
this point on, war expenditures is for Dec. 31,1937. (The estimate
in Canada were financed entirely does not include private capital in
:
.
.
,
.
-
in
the
domestic. market,
aside
$175,000,000 borrowed • in
Npw York Jn 1916 and 1917.
frorrf
Between March ?1, 1914 and
March 31,i 1920, the Dominion's
outstanding public debt increased
from $544,400,000 to $3,041,500,000
an
increase of approximately
$2,500,000,000, or about $300 per
capita of the population. / : 7.
V,;
1 Jn this domestic
financing dur¬
/
ing
War I,
World
vestment houses
leading
a
the
with
first
Victory Loan in November, 1917,
they
IN
INDUSTRY, SCIENCE^ RESEARCH
V"
•
directed
Victory Loan
the
''
STEEPED
in the strides^-malt
trgdltipn pf
agricultural
man's
has
long served
as
handmaiden
the diet of nations.
". Nature
ley, in
to
/
produced (barley anc) bar¬
turn, gave us
malt—miracle
product—whose magic has
formed man's
trans-
flight through space,
of life, won his
increased his span
wars
and filled his peace with
comfort and
health,
pleasure. In foods,
beer and other nutritive
beverages
from smokeless
or
baby foods—malt is
ppwdejr
tp
It spans
basic
fhe entire range of man's life,
progresSi.ciyilization. Dpri ng nearly 80
years the FroedtertJGrain & Mai ting
Company has
tion in the
cause
production of
of its
and its
grown to top
loyalty
to
ma 11
be¬
perfection
leadership in research. -7\7
Our reward has been
age,
posi¬
Wood pulp
prqduction-7
production Cc*:—7
Copper, lead end zinc
.1 production—7-Nickel production --77—
Steel
! and
production
castings)
j Canada is
tion.'
In
1938-^-the last full year
World War II—she
before
stood
fourth in
export trade among the
being ex¬
only by United
States,
countries of the world,
ceeded
nited
£
Csanada
Kingdom
and
Germany,
tries of-the World in exports of
qewsprint, wheat, nickel and as¬
bestos; -third -in wheat* flour and
was
first among the coun¬
firm
malting plant of major proportion
under construction of
invested
;
in
the
Canada's
Economic Expansion
Milwaukee)
and economic expansion in Canada
between the two World Wars cari
be
gathered
from
the following
- '6
statistics for basic factors:
1939
2,927,000
4,166,000
3,977,000
8,289,000
5,094,090
ozs.
tons
tons
M ft.b.m,
h:P,
/
fine ozs.
1,391,000,000 lbs.
226,090,000 lbs.
1,385.000 tons
offers
rubber tires; fourth in
biles and wood pulp.
automo-?
V
With the outbreak of World
War II—which Canada entered oh
Sept. 10, 1939—the country's eco¬
nomic .resources
and
financial
strength proved more resilient .and
powerful
than
most
optimistic
Canadians thought possible.
: )
In the past six year$ Canada's
(Continued op page 2776)
,
active* retail distribution,
.
7
•
•
of iunusual
possibilities.
*
.
,
7 /
'
4thBTB^ET
CINCINNATI %
CI 567
y
An indication of the industrial
continued trading interest in ;
securities of a few Ohio
18 EAST
Detroit, Mich
couq-
United^
States.';/:7'\ 77.
JOHN E. JOSEPH i GO.
WI$COfilSIN
now
$1;750,000,000 in other
was
.
a
companies
•
date, Cana-7
capital of
tries, of which nearly $1,100,000,000
920,000 tons
great exporting na¬
a
!
(A third
same
invested
(ingots
industry, watch lis GROW.
Winona and Minneapolis, yinn.
about
in Canada and 38
At the
had
,
151,000,000 lb?.
45,000,000 lbs.
—
plus
Plants: Milwaukee, Wise. (Two)
dians
2,470,000 h p.
767,000 fine
Gold
•This
MILWAUKEE,
owned
abroad.
1,716,000 tons
3,820.000 Mft.b.m.
production
- ;
F!ectri.c power installed-
pf
$18,000,000,000 consisted of
1919
795,099 tons
production—
patron¬
and endorsement of
respect
American
the
62%
estate.)/
real
capital, investment
'77.7
Newsprint
Lumber
7..
domestic
or
about
Canadian in¬
played
Beginning
part.
farms
The • total
MAIN 4640
.
Volume
162
THE COMMERCIAL & FINANCIAL' CHRONICLE
Number 4444
2719
>4V/
7 lV»r«,j
V
•••*,*;v •
..
v'
i,-
J i '
PRESIPENT
Vice-President
J
:
Vice-President
|
'
TV
v';1 >':
Charles
S.
Julien
Garland
H.
Collins
f
Exec. Sec. &
H.
Treas.
H. Dewar
GOVERNORS
>
-r;:
'I
;
a
Albert T.
Mark
C.
Armitage
Elworthy
Edward C. Anderson
John F.
Fennelly
Wm. Russell Barrow
John
G.
Flint
Henry M. Bateinan
John
Clifford
Folger
F. M.
Blankenship
Newton
P.
Frye
James
Frank
E.
M.
R.
Dain
Gernon
W.
\
S.
de La Chapello
Gilbreath, Jr.
[ r-:—CT*!r=gBfflmeaaBCMsamroiW'^
2720
Thursday, December; 6, '194 5.
GOVERNORS
Harry Thels
Albert
W«
Tweedy
Robert C. Webster
(Continued)
Adolph E. Weltner
Frank
A.
>
#
*
-
f
f
Wilson
F*
Lyle
Willard
'
i
*
*
f
*
Volume 162.
THE COMMERCIAL & FINANCIAL
Number 4444
CHRONICLE
2721
Protection of Customers—Cardinal Factor
By
deeply appreciative of the
honor you have conferred upon
me,: but I am keenly aware of
the responsibility which the office
■
\
imposes.
'
It is almost
■
four
-
Hollywood
the
ad¬
on
of
Harbor
have seen democracy at work to a
and
Much
rationed
appropriate to
degree
than
eyer before.
Business men, both
capital and labor, have been in¬
timately concerned with Govern¬
ment and Government has worked
closely with ( business.
Business
consider these
has
Pearl
taken
during
interlude
it
war
seems
years
as
background
in aiding us to
Charles
S.
project
Garland
unfortunately given
Certainly, every man
in this room has played a sig¬
nificant part in the service of our
country through War Loan Drives,
Civilian
Defense
Committees,
Draft or Ration Boards, Red Cross
have
National
War
Fund
Cam¬
paigns.
We haye every reason to
contribution made
by our membership.
During these four years we
be proud of the
.^An
is
&: Sons,
Annual
address
by Mr. Garland
partner in Alex. Brown
Baltimore, before the 34th
a
Convention
vestment
Bankers
America,
Chicago,
of
the
In¬
Association of
111.
1945.
Nov.
28,
of America
to provide for the How of private
capital into the businesses of free
enterprise and to create* a fair
been
sition
of
the
understand
to
military and conversely the mili¬
tary have an unprecedented re¬
spect for business.
j
And
have
we
found
we
have
tained.
'
never
ourselves
before
at¬
V-/' '
v
our
Stronger
more
intimate
knowledge of
and
through
,
is
Us
Bank.
immediately
have
the
of
successful
con¬
their
the
individual
accounts
toward that accomplishment,
With the experience of the past
and
business.
As
in¬
We have lived during these four
strictly on a day to day
food, our gasoline, our
servants, our business
basis—our
domestic
ray
DETROIT
^
•
«
•
us
and
we
to
time
have
the
down
to
hold it in trust to turn
our
first
For
successors.
in
four
years
we
the
now
opportunity to prepare
for the selection of
and I know of
no
our
successors
more
important
task than
nor
no
izens, we owe the, fulfillment ^of
that objective.
the
employment and training of
more
pleasant
young men of character, initiative
and human understanding to carry
on.
We must accept the responsibil¬
in
•
n
LOS ANGELES
CHICAGO
PITTSBURGH ; v
MINNEAPOLIS
»
«
FRESNO
SPOKANE
v
Private wires connect
SEATTLE
BOSTON
PROVIDENCE
•
f-
PASADENA
EUREKA
It was handed
eration.
WALL STREET, NEW YORK 5, N. Y.
INDIANAPOLIS-
PORTLAND, ORE,
BEVERLY HILLS
-
Hanson.
The fascinating business of'ours
was not created by us of this gen¬
■:-k
PHILADELPHIA
be directed, and I
it is with pleasure and
enthusiasm that I enter upon this
work with our new counsel, Mur¬
cit¬
an
Blyth
,
nor
will
assure you
to
e'rwriters
*
activity
underwriting business
The future holds our greatest
ity that the banking and securities opportunity to serve, for we must
business in all ifs phases consti¬ recognize that it is only the mili¬
tutes an important factor in our tary phase of the war that has
national economy—but we must yet been terminated and that there
also understand that its strength remain many serious and complex
can be maintained only by resolv¬
problems. Therefore* with the ^ex¬
ing the different points of view perience- of the past four years
to the United States for leader¬ which exist among the various and in light of current and future
ship. As investment bankers we segments of the financial business. world events, let us resolve to ful¬
shall undoubtedly play a signifi¬ Having the same fundamental ob¬ fill our obligations as responsible
cant part in the channeling of in¬ jectives, we must not allow our citizens of the United States en¬
vestment funds into foreign fields joint effectiveness to be lessened gaged in a business which is vital
either
directly
or
indirectly by internal disunity. The princi¬ to a strong national and interna¬
through the operation of Bretton pal functions of our business are tional economy.
business, its personnel and
of its functions.
SAN FRANCISCO
We must
increased
efforts of this Association and its
over
four years, it is incumbent upon
us to keep alive that
higher plane
of understanding between ' Gov¬
ernment
the
continued upsurge of securities
members
it is
remind ourselves
that world peace depends upon a
strong world economy and this in
turn
depends
largely
upon
a
strong United States economy, for
today the whole world is looking
our
14
Export-Import
we
cardinal factor.
a
allow
prices to diminish our zeal in pro¬
tecting the interests of the inves¬
tor.
Toward these objectives the
*
unnecessary
the importance
years
a
In considering the future,
externally through the con¬
sistently improved public respect
our
tomers
not
in the
Responsibility of IBA
creased material resources; strong¬
for
view
the
to
owes
place for new and Out¬
standing issues of securities with
the proper protection for the cus¬
Victory Loan
Drive. Believing that every pri¬
vate
investor, large or small,
should
own
Series
E
Savings
Bonds, I urge our membership,
between now and Dec. 8, to re¬
A Strong World Economy
v
steadily
"stronger.
internally through a
business
citizens
the
summation
business, de¬
our
grown
own
as
states.
loss of manpower and
many
wartime distractions,
has
before
States; and the responsi¬
bility of the investment bankers
to
the
economy
of the United
And yet during all this time, the
spite;
us
or
One task
United
Investment Banking Stronger
investment banking
Woods
And then with V-J Day there
pivotal nation in the shap¬
ing of the world's destiny—a po¬
learned
market
Economy.
worries have
was
er '
who
our
suddenly returned to us the
opportunity to look ahead and to
plan for the future. Such plan¬
ning -should be predicated upon
the experience gained during the
war years when we have learned
something of the responsibility of
the United/States to the world;
the responsibility which each one
their lives.
and
\f
the
A great many of our members
have been in uniform and; far too
even
daily. It has been vir¬
tually impossible to engage in any
long ,ra.nge planning,
(■ stimulating
more
our
future.
many
National and International
.
eve
Association
Inaugural Address, Mr. Garland Slates That Investment Banking, Despite
Losses and Distractions, Has Grown Steadily Stronger
and Is Prepared to Play Its Part in Maintaining a National Economy Looking
Toward World Leadership.
Cautions Against Allowing Increased Under*
writing and Upsurge in Securities Prices to Diminish Zeal in Protecting
Investor's Interests and Says Protection of Customers Is Cardinal
Factor in Sound Investment Banking.
Calls for a Strong
years
journed
Bankers
Wartime Manpower
since our, last
convention at
which
CHARLES S. GARLAND*
President Investment
In His
am
.
Incoming
:
^
LOUISVILLE
CLEVELAND
<
«
SPRINGFIELD
SAN DIEGO ~
OAKLAND
principal offices.
V
SAN JOSE
»
V
*
SACRAMENTO
'
^
STOCKTON
"V
THE COMMERCIAL & FINANCIAL
Dunn, Chairman
|the Federal Taxation Committee,
submitted to the Convention of the
Holding Period.
Sees Little Further Relief From Taxation:
Prospective Reductions Being Confined tp Lower Income
Chicago a brief report on
outlook for future Federal tax¬
5A at
le
ation
and
recommended.-specif¬
ically that double taxation of dis¬
tributed
Ibe
corporate income should
eliminated
and
reduced,
and
t^at the capital gains taxes should
be revisedy The text of the
follows:
report
'
.
After V-J Day Congress
new
rapidly in granting relief
rather
from
,
moved
high wartime tax rates.
The
Ahead, With ;
Brackets, i
;
tax bill was
1, 1946, and also lowered
of Jan.
Recommends That Capital Gains and LosS
Provisions of Revenue Act Be Changed by Reducing Rates and Shortening
IB A Federal Tax Committee Also
of
Thursday, December 6, 1945
of Corporate Income Ended
Wants Double Taxation
Richard P.
;
CHRONICLE
by two percentage points the cor¬
Twelve mil¬
porate surtax rate.:
dropped from
the normal
tax exemptions, and cuts in in¬
dividual rates provided reductions
of approximately 9% in the higher
brackets and
13 % in the lower !
brackets. Other changes included ;
lion taxpayers were
the rolls by increasing
;
passed and signed
by the President.: Briefly, this bill
repealed the excess profits tax as
repeal of the capital stock tax, the f
declared value:excess profits tax i
arid the automobile use tax. The <
bill gave real- relief to both cor- [
pOrationsiuid individuals for 1946, t
and. taxpayers ' cannot
hope - for !
further reductions ' (except those v
.
resulting' f r o m • administrative
changes) until 194*7.
|
the present ;time it appears
j
,
"] At
Corporate; and Public
only
slight chance that Congress !
a
Will overhaul the Entire tax struc- j
Instead there will :
further amend- !
rr.ents to the present act.
At the'
ture next year,
be
undoubtedly
I
Financing IS|f111
moment
of
most
Washington
the
to do with lower indi¬
vidual rates and a substantial re¬
gossip
as
There
-
for lower individ¬
ual
rates, increased exemptions
and more generous treatment of
earned income, There is also con-
-
duction in the excise rates.
a
is much support
Underwriter and Distributor i:
and interest in *
providing relief for individuals :
(and
partnerships)
engaged
in
business since the new tax bill ^
siderable agitation
gives the advantage to an incor¬
business
porated
scle
the
over-
proprietor and the partnership.
\
Next year when Congress tackles
the
job of further tax relief,1 the
estimate of Government revenues
1946 and 1947 will have a di¬
for
rect
bearing
is
inflation,
and
of
the
at
a
serious
time
same
that our national income
realizes
be
(Secretary
enough
high
Vinson says
$130,000,000,000 min¬
to; ;:
imum) to produce tax revenues
cover
budget of about $25,000,-
a
000,000.
to
>
granted.
be
can
fearful
Congress
must
the amount of tax
on
which
reduction
is
-
J
If such
result,
a
national income
production (and em¬
ployment must be at peak rates,and
of
many
legislators
our
removed. f
tax deterrents must be
much
While
been
are
realize that serious
beginning to
relief has already
granted, it is safe to say that
further cuts in individual tax bur¬
will
den
be
made
next
plicable to 1947 incomes.
year
mid¬
this w'll be in the lower and
dle
ap¬
Most of
be
brackets, but there should
at least modest relief in the
higher
brackets.
recommends
committee
Your
that double taxation of
[JUttlT
distributed
corporate income should be
inated
or
reduced.
that the capi¬
tee also recommends
tal
gains and
the
be
act
losses provision of
that
the
be shortened
and
changed
holding period
the tax reduced.
are
%.
so
This change, we
confident, would result in
tracting
the
elim¬
Your commit¬
venture
greater tax revenue to/:
ness
and
the
Government.
urge
We
strongly
that the above two recom¬
mendations be brought by all
FIRST BOSTON
dividual members of our
tion to the attention
tors and
CORPORATIONS
Executive
NEW YORK
Offices
>.
help, want help, and at
ard
*
CHICAGO
BUFFALO
»
NEW YORK
V
PHILADELPHIA
•
■
*•
1
■
'•
PROVIDENCE"
•
;
CLEVELAND
•••;.■' v
•
HARTFORD
FRANCISCO
all times
.;Cfv
Committee—Rich- c -•
P.
Dunn,
Chairman; Hagood
Clafke, Henry H. Egly, Sumner
Emerson, Frank
,
SAN
of their Sena¬
Representatives who need
Federal Tax
BOSTON-
SPRINGFIELD
in¬
Associa¬
welcome constructive ideas.
BOSTON
at¬
capital to busi¬
B.
E. Gernon, Arnold
Grunigen, Jr., Hardin H. Hawes,:
H. Lemon,
Augustus W.
Harry W. Kerr, James
John R. Montgomery;
Phelos, Milton S. Trost, T.
son
John¬
Ward, Elmer L;= Williams.
^
THE COMMERCIAL & FINANCIAL CHRONICLE fc
Number 4444
Volume 162
272:
What's Ahead for Investment
By JOHN CLIFFORD FOLGER*
Banking?
Retiring President, Investment Bankers Association of America
Three months ago we thought
we saw the fair hand of oppor^
..
lunity beckoning- us to blissful
heights.
With the termination of
controls, inhi¬
bitions,
re¬
strictions
exactions
and
con¬
a- Revision of SEC Regula¬
Particularly in Registration Procedure and Prospectuses^
Holds Trend in Investments Has Been Toward "Skimming Off
the Cream" and Urges More Equity Financing.
Foresees Re¬
newed Foreign Investment as Much as $20 Billions and
Urges Financial Aid to Britain. Says Investment Bariking Never Had Greater Opportunities and Cautions
Against Using Timidity as a Symbol of Caution.
combat,
w e
ing the Okla¬
homa
Chorus
and chanting
"Everything's
coming
our
way." But we
soon
realized
that war's end
has not
tprmi-
Twelve
the head of
nated
our
our Government, President Roose¬
problems. On
velt, addressed a large group of
the
contrary,
bankers in the National Capital.
it has proJohn C. Folger
The banking fraternity was se¬
pounded a
verely taken to task for its mis¬
new series of problems arid enig¬
takes of the past and for its fail¬
mas dealing with peace and re¬
ure to bring in the right answers
conversion.
Finance is not de¬
during the depression. It was im¬
mobilizing. Bather, it moves into
plied that no two bankers could
first position. Because we are a
agree on anything. Therefore the
closely regulated business we are Government would seek its own
deeply interested in changes of
solutions, with or without bank¬
Government. There we find many ers'
help. The speech set a cer¬
new faces.- :
0tain political pattern for" the re¬
lationship between banking and
*An address by Mr. Folger, who
is President of Folger, Nolan, Inc.,
/Washington, D. C., before the 34th
Annual Convention of the Invest¬
ment
Bankers
Association
America, Chicago,
■1945.:v.;.vv/./^
111.,
Nov.
of
26,
years
Government.
for
ago
It is
no
,
nearly a generation in banking
has elapsed since 1929.
It's no
good raking over the dead leaves
of
the
past. Here
and
there
throughout/ the ages occasional
voices have spoken of bankers as
being stuffy and inflexible. The
banker of today and tomorrow
There has been
or
/-v.:
assertions to the
contrary, bankers are human be¬
some
UNION
any
new
duty towards this
administration. A
being struck.
a
future
note is
V/
Record Financing v
investment bankers have been
volume of financing
for 1945 will probably exceed 5%
billions. This is nearly double last
busy.
year
The
and up 15% from 1936, the
SECURITIES
of
old
tered
securities.
It.
is
new
private money is really
going into business. We are told
figure should reach 3 to 5
billions per year if we
are to
a
proper economy.
Current
6%
financing is divided;—
bonds, 12% preferreds, and
common
years,
resent
It
has
stocks. As in recent
senior securities still
almost
been
95%
of
around
rep¬
the/ total.
Government
money
pumped into the pipeline that has
kept things moving.
Studying the disposition of fi¬
nancing we find 40 %going into
industrials,
31%
into
utilities,
The
have cried, "Wolf, wolf,
thinking the wolf wouh
never come. The plain fact is: In
flation.is here. Indeed, it has beei
here foe some time. The first sigh
are painless, even pleasant. Stocl
market quotations afford popula
reading.
Bankers
watch
thei
mounting deposits with a glow o
pride, forgetting their competi
tor across the street has enjoyei
the same growth. By the end o
years we
—half
next
year
ernment
•
PHILADELPHIA
5
®
.♦
SYRACUSE
HARTFORD
Gov
shall likely have aggregat
deposits of 100 to 200 billions
banks compared With 59 bil
lions in 1929.
Everyone is
own
axe
and
busy grinding hi
explaining his owi
so
(Continued
CORPORATION
CLEVELAND
the
reach its pea
we
OF
v
before
can
our
BROADWAY, NEW YORK
BUFFALO
and
debt
v../:
BOSTON
cen
markel
mestic finance is inflation. For 1
Investment
65
has
stock
outstanding problem in do
UNDERWRITERS AND DISTRIBUTORS
./b
the
Inflation.
the
82%
trickle in all lines
a
There values are up 27% sine
January 1 of this year. This is no
new money into business. It is
flight of capital from cash int
equities.
the same old story: actually very
maintain
accent on rai
Principal excitement
balance is represented by refund¬
little
remains
ness
largest post-depression year.
It is noteworthy, however, that
for 1945 only about one billion,
or 18%, will be new
money. The
ing
an
financing but the much talked o
flow of private capital into busi
next
must be constructive and coopera¬
tive. We have
secret that
years there
was
an
undertone of hostility on the one
hand
and recalcitrance
on
the
Despite
and. smol¬
smarted
dered.
•
Tt is nearly 13 years since the
bank holiday. Sixteen years or
1 many
other.
They
ings:
rail
mainly Occupied with reducing in.
terest rates on outstanding bonds
tions,
ielt like join¬
lowly
once
with exceedingly low Spreads, th<
lowest in history. We are stil
Calls for More Thrift in Government and
of
the
reached 26% of the total.
All of this adds up to a yea
of
relatively large volume bu
Capital. Holds Inflation Is Here arid Thai Holding the Line Against It and
Paying Off,the National Debt Are the Two Pressing Financial Problems.
sequent on the
cessation
while
Stating That Finance, Instead of Demobilizing, Must Move Into Front Position,
Mr. Folger Deprecates the. Undertone of Hostility Between Banking and Gov¬
ernment and Points Out-the Need for Heavy Financing and Less
Timidity of
N
on page
2766)
THE COMMERCIAL & FINANCIAL
2724
CHRONICLE
Thursday, December 6, 1945
Government Looks to Investment Bankers
v.-
'
By JOHN W. SNYDER*
v.
Director of War Mobilization and Reconversion
I believe that we can agree
to
a
at
this time.
We
find
ourselves, a t
the conclusion
this
of
great
facing a
war,
number
of
situations and
of
many
the
problems .that
existed
after
World War I,
is
It
often
vently that
tory has a
way-of re¬
peating itself, but fortunately that
does not always have to be true.
When I recall the turbulent days
through which we passed in the
two decades following the first
war, I am impelled to pray fer¬
by Mr. Snyder be¬
fore The Investment Bankers As¬
sociation
of
America,
111., Nov. 27, 1945.
Chicago,
that
and
the
age-old
markers
highway
signs
all there.
were
.We
just traveled too fast to give them
boundless optimism, that was shat¬
if,. in fact, we
saw them at all..in our headlong
dash.
V
v''':
Those that we did see, we dis¬
shall
we
neither
see
tered in 1929, nor the bottomless
despair of the early '30s.
I believe that it is healthful for
to
us
admit
that
those
in
years
ignored the danger signals
which
past
experience
should
have taught us to observe.
We
took a national joy ride—zooming
we
beautifully paved
road in high gear with the cut¬
out wide open,
But, when we
reached the top of the hill and
merrily
we
up
proper
counted
and
downward
encountered
an
■
look
up
superiority
comment
in
a
were no
horse-andlonger ap¬
lie
chine in
It
our
was
But is
a
hands.
new
was
'
;
machine.
the
we
can
to
would
element in
full fruition of our
hopes. Simply stated—
you are highly, important, if our
economic system is to endure.
The opportunity that lies be¬
fore
the
of
a
for
recommend
to
recent
speech
by Walter Lippman before
a
Association
National
of
Ad¬
all
and
of
industrialists—:in
have, from pur
study of those difficult years, as¬
similated the lessons they contain.
have
walked
identified
old
erectied
signals—and
a
ones..
I
the
over
the
:
am
road
warning
few new
•
'
confident that you and I
determined to watch for those
and
posts
to
pay heed
to
we fail or neglect to
repetition of 1929 and
1930 would result, I fear that in¬
vestment
banking, as we now
know it, would cease to exist.
The greatest safeguard is selfpolicing. It entails the establish¬
them. Should
ment
of
standards
that Will
en¬
adherence
to
those
standards. It will require cautious
treading to escape the pitfalls in
your path. I think that you, like
any good merchant, Will not suc¬
cumb to the fallacy of lowering
the quality of the goods you sell,
for the sake of a greater turnover
dure,
and
London
Investment
bank¬
ing will be of outstanding impor¬
tance in the financing of new in¬
dustry, in aiding our economic
growth and in meeting the respbnsibilities of participation in
international
progress.
We will
expand to provide the
jobs, the income and the purchas¬
ing power without which we canhot hope to~ maintain or enhance
our living standards.
Of late, your volume of busi¬
to
end
yielding
securities
by
lower
ones.
us,
do so, and a
Chicago
to¬
,
fact,
sign
New York
bankers
ness has been substantial, but it
has been mainly a question 6f re¬
country, as well as funding—th e
replacement of high¬
commercial bankers, and the er
merchants
are
Established1850
investment
nation.
bankers of this
lay the blame at this door or
Hallgarten & Co
the
the
our
need
vertisers in New York.)
I believe that the investment
We
indulging
like
are a necessary
day is the greatest in the history
But self-appraisal is
attention
and
old hill.
same
in recriminations or in attempting
see
I
ahead.
gaining
(Incidentally, in this connection,
your
a
economic
good time to indulge in it.
made
play
You
commendable trait and this is
the
\
suggestion that anything
could slow this powerful new ma¬
Nothing is gained by
back
that
We greeted with tolerant amuse¬
alarming and
Our brakes would not work.
we
casual
■
ment the
frightening fact:
As
with
the disdainful
they were put
buggy era and
plicable.
course,
at that door.
a
attention,
>■
a
inevitable
the
*An address
see no repe¬
the
That
said that hisJohn W. Snyder
shall
we
tition of those times..
country
vital and most im¬
portant role in the years which
■:
'
confronted by
will
Which He Says Were Due to Ignoring Warning "Sign Posts."' Stresses the
Important Role of Investment Banking in Re-establishing a Sound Economy
and Predicts Rapid Removal of Restraints and Government Withdrawal
From Business. Says Our Corporate Business Structure Will Require
Annually $3% Billions of Additional Financing and That Business
Will Need More Working Capital. UrgesJFinancing Geographical
Decentralization of Industry and Small Business Venture Capital
and Predicts Large Scale Private Financing of Foreign Indus¬
try. At New York He Tells Marketing Executives Recon!v"
version is Aimost Complete.
nificance
to
investment
bankers
vestment bankers of this
Prominent Administration Official Recounts Economic Errors After Last War
that
of devoting time
the study of history is to find
guide to the future,
This ap¬
proach has a
particular sig¬
the main purpose
and
quicker profits—which in the
prove; not to be profits, but
losses.',
;
Of course you Will compete in
Obtaining business, but not out of
a desire to show the greatest vol¬
You have
able
helped to make availexisting industries the
To
easier rates made
possible by an
unprecedented abundance of sav¬
ings and other bank deposits, and
by the wise course^of the Treas¬
ury's war finance program.
To
keep
pace with the demands
times, it is entirely possible
that our corporate business struc¬
ture will require as much new
money in one postwar year
as
was put into capital assets in ap¬
proximately five years before the
War. This would mean new cor¬
porate financing in our country
of
our
at
a
rate of some three and one-
half
billion dollars a year.
Re¬
cently, the increase has been in
the neighborhood of six hundred
.
million
vast
dollars in
a
year.
These
will be needed for
sums
plants,
better
safety devices
machinery,
new
new
and many other
"musts" for modern business.
To
handle the expected increase in
volume
of sales, business enter¬
prises will need more working
capital than ever before.
heed
The
of
industry for
new
financing
is
accom¬
panied by a need on the part of
ume of sales, but rather with the
the public for sound investment
aim of marketing the best secu¬
opportunities. ; There
is
more
rities at the fairest prices.
;
money available for investment to¬
The Future Role of Investment
day thpn ever before. Liquid as¬
corporate
'
Bankers
It is
STATE
ana
•
Established 1812
:
:-y
an
sets
-
obvious fact that the in¬
the
in
hands
(Continued
of
on page
individuals
2764)
☆"
—specialists in—
->v-
U'
United States Government
MUNICIPAL
"
v
.
Securities
Trust
Agency
BONDS
JL
vj
JL-A K.J
:'.'A
Federal Land Bank and Other
Services —
Agency Issues
:
-
'
'
•
'
,
/
State and
'
7
Municipal Bonds
'
'
Municipal
Department
*r
Head
55 Wall Street
*
!
The National
Office:
Bond
♦
''
#
" '
City Bank
*
1
C. J. DEVINE & CO.
48 Wall
of New York
Chicago
New York City
•
HAnover 2-2727
Street, New York 5
Boston
•
Philadelphia
•
Pittsburgh
''
MEMBER
FEDERAL
DEPOSIT INSURANCE CORPORATION
Cincinnati
V'
—
—
—
Su
K"
*
St. Louis
•
San Francisco
•
Cleveland
'
Volume 162
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
2725
Actions
.
Senator
Leverett
Saltonstall,
speaking at the luncheon at the
Investment
in
Chicago
audience
Bankers
Convention
Nov.
27, told his
on
Massachusetts Republican
This, he felt,
Congress.
'
Senator Tells Investment Rankers There'll Be No
Balanced Budget* Until 1948 ahd High Taxes Will Continue; Sees More Regu¬
lation of Business Than Previous to War and More Social Security Enact¬
that
investment bank¬
business for you
ers." ..:''vv '
j';-
^
.
be¬
Convention
the
that what
lieved
■
he
that
stated
further
He
to hear from him was
what its members might expect
from their Government in the next
expected
"You want to know
two.
year or
what to expect from your Govern¬
to work that
in order
ment
pectancy into your plans."
.
No Balanced Budget Until
Minimum of Government Action.
a
ex¬
y.
194$
"
"One thing you
ond,
isn't
it
and
then
be
to
worse
forced
cut
later
is balanced?"
r
He then went on to say that
they could expect a strong Army,
Navy and Air Force, and stated
that what is finally decided de¬
pends on (1) the needs for our
own security; (2) the needs of the
United Nations Security Council;
(3) the size Of our National Guard;
and (4) possibly the outcome of
the debate on universal military
started.
achieved,
known.
You who are investment
bankers had much to do with the
be continued.
past.
sibly
Unless
built
upon
have
we
the
same
and
Government Regulations to
He~ discussed
continue
new
inventions and
to
of production
ple
more
still
ahead
retirement.
and
with
methods
interest
country will
our
there
will
be
there
that
controls
dropped
rapidly
as
that
are
should
necessary
as
financing
no
be
Government should have the
our
(Continued on page 2763)"
possible.
must
learn, might pos-;
I
But
ask
two
you
to
cut
tax
BLOCKS OF SECURITIES
LARGE
receipts sub¬
stantially until the budget is bal¬
Experience Counts
anced and the debt reduced? Sec-
no
■
-
Determining the best method of selling large blocks of outstanding securities without '
Industrial, Utility and Municipal Firlancing
adversely affecting the market during the operation is
business.
Securities
Bought and Sold
Com:mission
on
In
yy
' 7V
Trading Markets in
•
.
experience.
distributed In
KIDDER, PEABODYSf CO.
FOUNDED
andYork
Aluminum
1865
Qurb Exchange
"
■
Boston
York
ALBANY
PROVIDENCE
'
NEWPORT
7
-
■
'
New York
Chicago
BALTIMORE
SPRINGFIELD
NEW BEDFORD
/
Philadelphia
SCRANTON
LOWELL
BEADING
Teletype NY 1-193 [,
by private placement,
recent
'
'
large blocks of preferred
years were
R. H.
;:
Chesapeake and Ohio Railway Co.
Consolidated Edison Co. of N. Y., Inc.
The Dow Chemical
Company
y
V'V\--V.
MEMBERS
.
New York and Boston Stock
New York Curb
Exchanges
Exchange
;
;
61 Wall Street, New York 5, N. Y.
Company
Pittsburgh & Lake Erie R.R.
Eastman Kodak
"
Reading Company
■
,
;
>
'.
-•■<*1 '■
,,
•
Cincinnati
V..
y
Swift &
Company
Swift International
y
Company
Liggett & Myers Tobacco Company
The Youngstown
Company
Sheet & Tube Company
The Youngstown
Steel Door Company.
In the
placement of these securities we have had the cooperation of hundreds of
dealers
throughout the country.
you, as an
manager
stock,
we
individual
or corporate trustee, an owner
of securities yourself,
■
would ,be glad, to have you discuss
it with
us.
,
t
SMITH, BARNEY &
*
>
Members New
WALL
525
».....
•
York Stock Exchange,
STREET,
f
NEW YORK-5'
*
Philadelphia
"
,
_y
•
Pittsburgh
vv.,
FIFTH
AVENUE,
NEW YORK
'
f
.
y■y
•
V
..
*
.
St. Louis
or
the
of the funds of others, have the problem of disposing of a large block of
'
.
;
The Timken-Detroit Axle
PHILADELPHIA
Cleveland
,
Copper Corporation"
14
CORRESPONDENTS^
;
v
The Superheater Company
Railway Company
■
LONDON
.
.
The Standard Oil Co. (Ohio)
Company
NEWARK
.
5
Railway Co.
-:Vry;y'
•
.
Company
E. I. duPont de Nemours &
Company
have
we
A
The North American Company
Phelps Dodge Corporation
;
Philadelphia Electric Company
Phiico Corporation
If
y :■*;
Macy & Co., Inc.
The Chase National Bank
>v
Kennecott
,
stocks which
Norfolk and Western
The Hoover
v'/-"
or common
Armstrong Cork Company
Refining Company
Hercules Powder Company
ESTABLISHED T845
Special Offer¬
The Atlantic
Great Northern
,
or
J. P. Morgan & Co. Incorporated
Company
Great Atlantic & Pacific Tea Co.
'■/
by Secondary
the exchange
those of the following important corporations:
Company of America i
General Electric
Clark, Dodge & Co.
or
on
National Biscuit
The
New
or
our
v.
.>
_
many
The American Tobacco
York and "Boston Stock ExchanZ"
^Members
-
<
-7
follow the normal procedure of selling
to
security is listed,
Typical of the
Foreign Dollar Securities Xy
-
v
ings, the firm of Smith, Barney & Co. brings to the problem the real advantage of
Stocks
Industrial, Utility, Railroad Bonds and
y-'X-'y v;X?7 y
'-:;a 7'
important function of
an
-■
deciding whether
where the
•
yl--vv
■
make regional changes
system of production. This
affects
particularly the North¬
eastern
section
of the country.
in
But
war.
to»
to
pense
be
would
the
The recent tax bill,
can
questions: First, is it* in anyone's
our peo¬
added
longer
Govern¬
and restrictions
before
afford
balance the budget a few
hence, this without any debt
years
new
that
than
could
or
more
Until balance is
deficit
I
foundations
by which
work,
secure
stand
go
from all
Stated
and
it
,
...
briefly
ment regulations
than
Such promises, incapable of
being kept, Were the surest way,
to lack of confidience in ,our form i,
pf government.
■
' 1
He
continued, "Another ten¬
dency of government is the effort
on the part of some to use the in¬
dustries built at the taxpayers' ex¬
pay.
billion
rather than less.
future
a
twenty-five
benefits
order to get
benefits will
cost more, rather than less."
.
of
hospitalized
.=y-yyV-yContinue
•
social
security. But he era-1
phasized that the foundation of:
social security rested on the in-;
tegrity of government and gov-1
e?nment must not promise more:
it, to receive the
security in
All these
proper
■
America the industrial and agri¬
cultural giant of the world with
the highest standard of living ever
of
benefits of his interrupted educa¬
tion
and
sufficient lo3ns
with
,,
>
r
insurance would increase the costs
be
to
where he needs
surely will get
an
from your Government," he con¬
easier old
Sen. L. Saltonstall
age a
He will y
'--r^&';'■?*-.a vv1:'- tinued, "is taxes. Today the coun¬ training and the unified command
work hard.
This mean! produc¬ try has a three hundred billion
measures. *
tion and good times.
Good times dollar debt. Even though we pro¬
He discussed veterans' benefits
bring savings. Savings bring ven¬ vide for no reduction in that debt,
ture capital.
"Everyone
expects
Venture capital is we must service it. There* prob¬ and stated,
what made America produce new ably will be no balanced budget
inventions. New inventions until the 1948 fiscal year, at the
created the tools that have made very earliest, and then at a figure
,
1
erly' treated,
to
on
put them back than to keep them
at a higher level until the budget
that social se-j
ment
and wants the veteran to be prop¬
taxes
the attitude of i
curity was here to stay.and would.
Old
age
assistance, unemploy-|
compensation, an increase in|
the number of hospitals, and po£-i
Sibly new benefits stich as health i
Warns Against Government Undertaking More Than It Can Ful¬
fill and Urges a Democratic Settlement of Labor-Management Relations
ments.
With
was
He further said
CHICAGO
at-
the
2726
commercialf
''
'
'
'
,/',V'
'
'
& financial chronicle
'
'
'
In
prefacing
its
Convention
of
report to the
the IBA, the
C h airman,
atten¬
tion
.
to
pro-
posals in Con¬
gress to place
the control of
air
line
secu¬
under
rities
the
Syndicate Operations and Definitely
Fixing Effective Date of Securities Registrations. Advocates
jurisdic¬
of the
tion
nautics
c
ompulsnry
the-views of the investment
that
covers
nance,
In
the
follows:
;
representation at the
office of the Association referred
to
Your Committee /was
tion.
requested
have,♦accordingly, examined
received by the
documents
Association from the Subcommit¬
Transportation of the Com¬
mittee on Interstate and Foreign
tee
on
and
Commerce
consideration
given
have
we
the many
to
ques¬
tions which have been raised con¬
Members of the New York Stock Exchange
c
//J;//
cerning this matter.://
•
In the
opinion of your Commit¬
is
there
tee
occasion
no
presentation
the
for
Investment
the
by
Association
Bankers
of
a
reply
with these questions in
detail. It is, however,5 the view of
dealing
INVESTMENT SECURITIES
your
Committee that the Associa¬
tion
should
affirm
its
belief
in
which, in our
judgment, provide a sound foun¬
certain
\
ter under
efited
Aeronautics
Board
the
control
ical
.
principles
dation for the structure of Federal
regulation
of
civil
aviation,
follows:
NEW YORK
ALBANY
■
as
//'/ / >
(1) The existence of military air
power
air power
another war or
of
event
/ '
emergency.
(2)
In
our
y
>$'// "
=
v
the
Congress,
through the Civil Aeronautics Act,
1938,
created
a quasi-judicial regulatory
authority for/civil aviation and
gave this authority a large meas¬
of
ure
independence from politi¬
and
The,/ Civil
control.
executive
/
Aeronautics
Board, as established under that
Act, should be continued as the
body having regulatory jurisdic¬
tion
commercial
over
air
trans¬
portation and civil aviation gen¬
The independence of the
erally.
Civil
Aeronautics
not be curtailed.
the
to
should
Board
Appointments to
be given only
should
Board
of
the
highest integrity,
possessing the technical knowl¬
edge and experience essential to
men
the proper discharge
sponsibilities,
(3) In
the
general,
1938
at
authority
worked
in
out
same
time
of
civilian
the
civil
popula¬
It is essential that a strong,
novw
and
Pont
du
&
to
control
the
of securities
this
by these Congressional
that
the views
banking
presented.
: '"
are
effectively
*/
than
achieve
No industry has done more
the
aviation
industry to
victory in the War.
And there are
the invest¬
which
in
fields
few
ment banking business
has had a
constructive part than in the
organization and development of
the aviation industry in the pe¬
riod following World War I. We
have a right to be heard when
the problems of the industry are
before Congress and we should
not hesitate to appear and state
our
views.
/
The New Financing
,
by air transportation
It is the function of your Com¬
to deal with matters re¬
,
mittee
lating
to
industrial finance
in
general. As we look over the field,
it appears to us that certain recent
1944
developments
and
trends
attention
and
and
■Y:
1945 have been years
great
has it consisted?
In the
seven
period of four years and
from Jan. 1, 1941,
months
(Continued on page 2761)
Municipal Securities
'U'Ur'' .' a'/ //
.'V
MEMBERS
New York Stock Exchange
New York Produce Exchange
New York Coffee
New York Curb Exchange
;
•
New York Cocoa Exchange
& Sugar Exchange
*
<
A.:/•:/
y/•■
U. S.
Chicago Board of Trade
GOVERNMENTS
FOREIGN
WALL
STREET
-
Cable:
Rhetpont
Special and Secondary Offerings
NEW
YORK
5,
N.
Branch Offices and
Newark, N. J.
e. f:
Teletype: NY 1-1181
hutton
Philadelphia, Pa.
Charleston, S. C.
a company
ESTABLISHED 1904
NEW YORK
PRINCIPAL SECURITY
%
61
Whitp Plains, N. Y.
Correspondents in Princi¬
States. Foreign connections in Europe.
Y.
MEMBERS
Wilmington, Del.
MUNICIPALS
CORPORATE BONDS
AND
pal Cities In the United
Tel.: BOwling Green 9-6000
AND
New York Cotton Exchange
•
New Orleans Cotton Exchange
Private Wires to
ONE
IN
DEALERS
'yy/;:
STOCK EXCHANGE AND OTHER
AND COMMODITY EXCHANGES
WHITEHALL 4-2100
BROADWAY, NEW YORK 6
BELL
SYSTEM
CABLE ADDRESS: TONHUTEF
TELETYPE NY 1-1675
'
LOS ANGELES
Albuquerque Pasadena
•
'
Beverly Hills
Phoenix
•
•
San Dieao
SAN FRANCISCO*
*
Hollywood
El Paso
•
•
San Jose
merit
comment.
and
activity in the invest¬
ment banking business.
Of what
of
companies, including authority to
Corporate
relat¬
of the investment
business
Underwriters, Distributors, Dealers in
.
Asso¬
rangements should be made to en¬
sure
that the Association is rep¬
resented on such
occasions and
sale
and
Committee
ing to the sale of securities by air
transportation companies are un¬
der consideration. Appropriate ar¬
capital and no
issuance
Section
Committees when questions
problems have arisen which call
legislative action or for fur¬
ther regulation in this field. We
note that a proposal has been made
to Congress that the Civil Aero¬
nautics Board be given authority
Co.
under
should, in the opinion of
Committee, express a desire
your
for
Francis I.
ex¬
Interstate and For¬
on
to be heard
wholly by
the sale of
equity securities. The air lines
have experienced no difficulty in
needed
an
ciation
almost
obtaining
include
available
Commerce
avia¬
financed;
to
presenting these views to the
j (4) The air transport industry
soundly
of
eign Commerce of the House of
Representatives and to the Senate
the procedures
been
exempt
burden
(a)
In
Departments
has
Act
Committee
the Civil Aeronau¬
in accordance with
followed in deal¬
ing with the proposed amending
Act of 1943 (the Lea Bill).
the
to
of
log4
jurisdiction.
commit¬
having jurisdiction and rep¬
tion industry,
the
to
(6) of the Securities Act to
railroads operating under I. C. C.
be¬
conferences
tics Board and the War and Navy
of
3
Act
air-
mindedness
tion
the Congressional
resentatives
sale
emption for air' line companies
regulated by the C. A. B., subT
stantially identical to the exemp¬
more
tees
and
issuance
the
latter
the
operates satisfactorily and is sound
in principle. Such changes as may
be necessary in this Act should be
tween
in
registration under the Securities
Act by amending Section 3 (a) of
; :
;
f
of their re¬
is chiefly dependent on the
aviation industry and on the
tion.
serve the peace¬
the nation, but to
of
beit*
regulation
further
by
this area; however, if the Congress
should decide to give the Civil
'
basis for
a
Act. The
the Securities
public interest would not be
air line securities it would be
cal :: interference
V
/VVvVv".
We
the
s
the
in
to, deal with the subject in its re¬
Laurence M. Marks & Co.
as
grave
gressional body.
Committee a request re-
your
needs
time
serve
When
purposes.
proper
they sell securities to the public,
the air line companies must regis-r
being, not only to
Transportation Survey" which
has been undertaken by the Con¬
port from the standpoint of its re¬
lation to civilian air transporta¬
.
its
plish
healthy, and independent civilian
aviation industry shall continue in
tion in connection with the "Post¬
*
on
Investment Bankers
war
September, the headquarters
this proposal and that
association
learings
expression of the views of
Associa¬
an
the
present problems of industrial fi¬
be made to in¬
sure
wnich
report,
Foreign Commerce
House of Representatives
the
of
for
mittee's
6n
Interstate and
sented*, The full text of
propriate arr a ngements
Committee
the
from
ceived
bank¬
effectively pre¬
the Com¬
business, be
ing
Committee
urged that ap¬
Stewart
now
tory authority it needs to accom¬
the air lines from
competitive
bidding. The
McLean
Board
Government
and to require
matters
managerial
The Civil Aeronautics
has all of the regula¬
judgment.
Withdrawal From Industrial Financing and
Removal of Unnecessary and Burdensome Restrictions.
Board
competitive
are
which should be left to
ing Price Control During
Civil 'Aero¬
compulsory
But these
require
bidding.
Board Is Given Control Over Sale of Air
Line Securities, They Should Be Exempted From Registration Requirements.
In Reviewing Corporate Financing, Committee Points Out That Industrials
Have Taken More "New Money" Than Rails or Utilities and That More
Venture Capital Is Going Into This Field.
Holds Private Placements
K
Will Increase in Volume and Calls for Amendment to Securities Act
to Require Registration of These Offerings to Equalize Competitive
Position With Public Offerings.
Urges Passage of Act Authoriz¬
[which Robert McLean Stewart is
'
Over Control of Aviation Issues
Recommends That if Civil Aeronautics
[Industrial Securities Committee of
called
'•
'
Industrial Secuiities Committee Concerned
34th
Thursday, December 6, 1945
♦
•
Santa Barbara
• Oaklond
Santa Monica • Tucson
Long Beach
•
Volume
Number 4444
162
THE COMMERCIAL & FINANCIAL CHRONICLE
2721
Railroad Committee Notes Further Gains in Carrier Credit
In its report to the 34th
Says Confidence in Rails as Backbone of Transportation System Continues De¬
spite Factors Pointing Toward Traffic Declines and Reduced Earnings.: Sees
Annual
Convention of the IBA, the Rail¬
road Securities Committee, head¬
ed
by Fairman R. Dick
Chair¬
as
took
man
Possibility of Offsets in Improved Equipment, Greater Efficiency and Elimination of Overtime Pay, and Holds Freight Rate Increases Essential if
Higher Wages Are Granted Employees, but Warns That Political Pres¬
sure on ICA
May Thwart Action.
Concludes "Railroads Are Prei
pared as Never Before to Live Off Their Fat."
an
•
optimis tic
view
of
the
railroads,
..
pointed
'
that
but
out
earnings
bound
are
to
fall below the
,
wartime
els,
that
'
wage
to
em¬
rates
ployees
in
are
the
offing.
HigherV r a i 1
charges,:,
offset
R.
Dick
are
es¬
and
v
but
policies
the
Political Pressure of the
ICC immediate or
adequate rate
increases may not be
expected.
The text of the Committee's re¬
port for
1945
follows:
scribed
the
extensive
railroad credit that took
place in the preceding year. Im¬
has
provement
rapid
continued
at
a
for another 12 months.
pace
The Report for 1944 measured
the gains by the prices of a
large
number of issues.' It would seem
to repeat this list in
unnecessary
detail, but the extent of improve¬
ment
be
can
illustrated
"• *
following:
by
'
'
'
.
7
Increasing
recognition
extent
ment
to
cerdit
based
was
improve¬
the
on
increased
recognition that
our railroads are,
in fact, the very backbone of our
domestic
transportation- system.
Growing confidence, today, when
increased
truck, air and water
competition is to be faced in the
immediate
a
future
evidence
would
that
this
.^seern
factor
most
: important
ingredient
composite credit picture.
the
is
in
:
the
V
Confidence in Railroads Continues
Such
ened
conclusion
a
when
fidence
spite
it
is
the
in
and
substantial
in
in
tion
v
the
possibility,
probability, that
will in the
near
if
not
the
and costs
wages
future increase to
higher levels.
Moreover,
Nov. 15,1944
un-
that when
are
the
will
:
into
crammed
would
the
back
are
passengers
It
troop
and
over
mobiles
-;
:
are
•
•
competing for the business.
There
of"
are
the
production
debt
but
at
eliminate the cost of much
is
the
size
of
the;; required
Definite
crease.
respect
forecasts
market
value
months 50 to
The
principal
continued
road
100%
or
outlined
in
the
in
rail¬
1944
impossible without
knowledge as to
are
3.40
*
*
not
7'
t
t
spring, due tq. the procedure and
4.44
v
74
5.02
$
a
favorable
limited
factors
affecting future
earning
to
power
declines
in
are
not
traffic,: .in¬
in
abnormally favorable
ditions
will
next
which
in
all
assets
and
of
future
costs
probable
that
be
decision
a
reached
requirements
until
the
of
In all
a
.
change for the
12
normal
worse
months.
from the
train
on
credit is impossible to de¬
termine.
no
credit
There
(Continued
completed product
such
7
7 INVESTMENT
;
late
STOCK
unusual
course
occurred
2765)
NEW YORK 6, N. Y.
Railroad
probabilityz
ap¬
so,
applications
increases
initiated
which
may
.
in
case a
a
for
settlement.
freight
If
rate
be expected to be
early 7 summer,7 in
decision could be
ex¬
in the
c
earnings
per
nt
■
freight cars due to the wartime
shortage of cars and the Office of
Transportation", rules
quiring maximum loadings.
re¬
Eastman, Dillon &
15 Broad Street, New York 5, N. Y«
COMMODITIES
•
,
"
; ^
c<?0
;T
/
connecting
EXCHANGE AND OTHER
SECURITY AND COMMODITY EXCHANGES
of
BANKING
39 BROADWAY
PHILADELPHIA
•
CHICAGO
•
•
PRINCIPAL
.
CHICAGO
LOS ANGELES
LOS ANGELES
READING
Private Wires to
YORK
as
on page
offices in 35 cities in the
NEW
be
can
crisis
would
the
PATERSON
y
have
prolonged period
earnings
would
a
poor
very
ne¬
mile,, resulting
loading of pas¬
United States and Canada
MEMBERS
considerable increase in-rates.
What effect
.://!7//7777
passenger
passenger
Private wire system
our
any
of
One of these factors is the ab¬
11 Wall Street, New York
.■
indicate that
to
period of at least six months
would be required as a basis for
seem
THOMSON & M' KINNON
SECURITIES
seem
test
a
must
Barring
FOUNDED 1913
7-
would
man
con¬
Defense
current
permanently
surcharge in rates
suspended temporarily.
The
recent speech of President " Tru¬
now
probability
cushions
in
ICC to cancel
wartime
the
plications for higher freight rates
sengers into cars, and the other is
the abnormally heavy'loading of
possible important reduc-
to the
f. eberstadt & co.
settlement of the present
Labor Act.
Report remain fundamentally un¬
changed:
:7;77/c'--47777 ■; yyy4';
(a) A level of net earnings that
permits the building up of safety
makes
as a
definite
more
:
flects
the
rail, either
transported by
heaviest
in¬
105
the
of
causes
improvement
credit
that is
the
this
6.05'
of
more.'%4/V
commerce
enters
article of
from
future labor and material costs.
gotiated agreement, it would
the
stock equity of the railroads, the
prices of many railroad stocks
having increased in the last 12
in
6.07
/
rates
every
•
•
Correspondents
ST. LOUIS
•
HARTFORD
EASTON
in
•
In¬
no
over¬
Wage negotiations.
x-
of
free
the
Commission
Nevertheless, the evidence
convincing that a freight rate
increase is an absolute necessity
if adequate earning power
i^ to be
maintained, The only uncertainty
4.55 ;
by
in¬
freight
cost
that
expect
mere
wishful
is
3.67%
wage
rates, and the
cost of materials and supplies, be¬
cause wartime
earning power re¬
lower
likewise
the
be
be
time.
991/4
to
refund
railroad
into
to
Commerce
especially
it is realized "that the level
would
improve
employee and
per
83%
able
cost,
prices regardless of costs
not 7 encouraging,
It
Likewise the restoration of,
99
creases
increased
restrict
,
corre¬
of
normal conditions should
111
increased
terest
the part of Government to
of
,
course
5.41
Yield
on
when
offsetting
factors such as the improvement
in ; railroad
efficiency resulting
from improved operations and the
use of improved power and equip¬
ment.
Report national policy would
to be b,y no means clear, al¬
apparent determina¬
though.,: the
available and other railroads
cars
to
seem
is
to
political pressures^ There
sign yet of any change in at¬
titude on the part of the OPA or
the Department of Agriculture as
evidenced by the recent petition
can
wage and price prob¬
At the time of the writing of
tion
to
matter
a
thinking
would
entire
this
equally clear that
when an ample supply of equip¬
ment is available it will no longer
be possible to require a shipper
to load a freight cur to maximum
capacity if there is a surplus of
structure
be
terstate
is
expedited or delayed.
Much will depend on the attitude
the
prior
kind of
be
course
rate
not
routine.
of the Government with respect
like. sardines.
cars
5.25%
991/2
roads
will
This tentative time schedule
of
materials
Judging from the past, an up¬
ward readjustment of the railroad
freight
pected in about six months/that
is, by late fall.
lem.
be
83 y2
the
.
longer
no
90%
railroad
of
roads
7:Estimates
credit is evidenced not only by a
rise in the prices of bonds and
number
auto¬
the
await
101
___
improvement in
movements
private
on
seem
would await-such
continued
obvious,
seem
Nov. 15,1945
if
The
in
Price
Called—replaced by 414 s.
f Called—replaced by 3%s. /:■
$ Called—replaced by 37/as.
»
estimate
■
.
v
Texas & Pacific Ref. 5s, 1980
;j,
to
Yield
Price
Marquette 414s, 1980
con¬
unshaken
drop in
spite of the rapid
operating ratios that has
already taken place, not to men¬
traffic
rise
still
Northern Pacific 6s, 2047_
strength¬
that
noted
continues
of
is
difficult
tions, but it would
,7/v:
which
is
of money the cost of a ret,
storation to more normal condi¬
of
year ago it was difficult, in
impossible, to determine the
It
terms
maturity,
transportation.
Atlantic Coast Line Unif. 414s, 1964
Brie Income 4V2S, 2015
Illinois Cent. Ref. 4s, 1955
Pere
of
improve¬
in
ment
(c)
clear
The Report of the Railroad Se¬
curities Committee for 1944 de¬
>
removal
the importance of our railroads as
the very backbone of our domestic
A
held to be
The
dangers by anticipatory payments
orrefunding, operations.
J,:
fact
conditions,
°F A
■
(b)
to
in view of the
o":;
,•
these
sential,
Fatfman
tions in debt and fixed/charges.
basic
as
spond with the present conditions
:
lev¬
and
higher
or
manufacture.
•
SAN FRANCISCO
ft
.
THE COMMERCIAL
2728
& FINANCIAL
CHRONICLE
Thursday, December
6, "1945
Urges Larger Private Holdings of Governments
Herbert
the
N,
IB A
ment
at
tion
>
<
-
*
Associa¬
lie
held
dred billion
in
Chicago, Nov.
25-28, 1945:
The
over,
and
o
f
out undue disturbance to
nomic
day, is
fiscal
is
historical
t
e r e s
t.
States
c u r
The
Gov¬
i t i
five
s ee s
ously
turn
formulation
We
our
of
to¬
dollars
a
and
per
structure
brought to
cord
with
a
sound
that
level
it
will
in
not
ac¬
principles of fis¬
together
with
will
must
now
attention
sound
taxes
vigor¬
to
limit
the
a
policies for
can
mistake,
the
charges
It
will
be
however, to permit the
of
.alone
the
to
interest
affect
so
centage
of
non-bank
the
debt
investor.
the
present
War
the
held
Finance
be
and
continued
securities
the
outside
break
in
public
interest.
taken
that
such
the
of
effort "to
that
of
set
Com¬
to
tip
the
aid
sale' of
banking
It should function im¬
so
that
there
be
no
mediately
be
the
in purpose to
mittee/should
direct
by
A perrhanent
organization, similar
structure.
war
which
to
be reduced.
consideration
the future management of a pub-
extent
per¬
other
permanently increased by the
Herbert N. Repp
One of the most
important prob¬
lems is to endeavor to
maintain
and ultimately increase the
annum.
heavy interest
budgetary items which have been
speaks
itself.
billions
charge,
85,000,000
people is an ac¬
for
eco¬
great that we cannot af¬
Obviously this is
over
that
our
system.> The problem
so
to
complishment
be
:
ford to undertake short-sighted or
inept experiments.
\
The Federal public debt today
calls for an interest outlay of over
in-
sale of United
ernment
dollars.'./
rate
management
this debt can cal policy or be in the best in¬
be serviced and even¬ terests of the entire
economy of
tually reduced considerably with¬ the- country.
"
<
time
war
of
whole
doubtless
policies
purely
of
our
approaching three hun¬
cal
any
appraisal
debt
With skillful and competent fis¬
is
war
during the past year has been due
the Treasury policy of limiting
to
the
continue
Care
should
securities
maturities
Treasury
may
the
be
offered
and
rates
continue
and
of
cial
of the
savings of the public in
gov¬
securities and capitalize
the habits of thrift which have
resulted from the
public
of
on
example,
the
rate
after- the
the
an
A
have
leading to
anced
been
a
cosls
settled,
of the
bal¬
a
budget,
a
ers
surplus
permits debt reduction should be
made
effective,
most
careful
At this time the
and
strict
and
v
so
vitajly affect
Association, vunderstanding
must devote spe¬
cial
thought
time
study.
and
to
banks, in¬
appropriations
of other
corporations and partici¬
so
that
no
unnec¬
essary projects be authorized par¬
pated in by 85,000.000 of
ticularly
ple
as
the
pent-up demand
types of goods and services
activity and satisfactory
Adherence
to
demands
best
your
our peo¬
thoughts
and constant attention.
Governmental
mittee—Herbert
em¬
sound
Eugene
man;
Securities
N.
R.
Repp,
Black,
essential
ward B.
if
the
confidence of
people is to be maintained.Much
of
the
decline
in
the
Hall, Leo A, Kane, Fran¬
cis M.
Knight, Aubrej' G. Lanston,
Jay N. Whipple.
••
yields
v"'.,
LA I R
44
WALL
Buffalo
STREET.
*'
Federal Intermediate Credit Bank
NEW
Chicago
Consolidated Debentures
YORK 5, N. Y.
*
Philadelphia
Offer...
Pittsburgh
U. S. Government
♦hey
Municipal
Public
/
afford
a
popular medium through
which institutional
porary
Utility
at
employment,
favorable
twelve
Industrial
funds, earmarked for
issuing banks
be invested securely
may
term rates.
These
are
tem¬
obligations of the
made available regu¬
larly for subscription in denominations ranging
i
Railroad
Canadian Government
from $5,000 to
$100,000, due
intervals up
one
mature
to
within
collateral
Securities
six
year.
months
convenient
at
Debentures which
are
acceptable its
security for fifteen-day borrowings by
member banks of the Federal Reserve
Salomon Bros.
&
THE FEDERAL
Hutzler
Members New York Stock
Exchange
^
v
"?
PHILADELPHIA
CHICAGO
CREDIT BANKS
described issues should be addressed
New York 5, N. Y.
BOSTON
INTERMEDIATE
System.
Requests for other salient information respecting the above
Sixty Wall Street
to
CHARLES R. DUNN, Fiscal
Agent
Private wires to
31
CLEVELAND
George
Buffington, Robert H. Craft, Ed¬
inc.
Boston
Com¬
Chair¬
principles of fiscal management is
Corporate Securities
B
their
The magnitude of the debt
companies and thousands
ployment.
;
•
of government post¬
course
surance
trial
Municipal
of
'
these problems,
gives such promise of high indus¬
.
.
should be made of all
requests for
for all
Government, State,
-
held in such volume by
scrutiny
be
members of the Investment Bank¬
budget should be adopted,
whenever
could
the entire public welfare that the
policies
rapid return to
to
unchecked,
of the savings
finance will
war
advisability
to make unattracive
investment
The
•
When the immediate
war
the
that the
rate structure
as
pf
prac-.
movement
If
the people.
offerings of bank ineligible
2Vi>% bonds.
entire
affected
so
continuity cf the long-term
should ,be confirmed by
pe¬
riodic
and
As
Victory Loan
this
further.
proceed
partici¬
pation in wartime finance.
permitting
a
cohsideratidn
should be given to the
ernment
commer¬
to-, those
of view, now
is over, serious
war
an¬
for
yield; and from
tical point
increase the investment
considerable part
eligible
bank, investment
very low
even
a
nual
issues
new
Is Essential to Public
Confidence.
ment
si*
*
,
Committee Asks
for Periodic
Offerings of 2l/2 %
Ineligible Issues and Curtailment of Movement Toward Lower Interest
Rates.
Says Government Adherence to Sound Principles of Fiscal
Manage¬
the
Convention of
the
Securities
Government
Bank
the
Associa¬
the
to
IBA
Govern¬
on
submitted
following report
tion
Chairman of
Repp,
Committee
Securities
Nassau Street
New York
5, N. Y.
Volume^ 162
v
.
Number* 4444'
THE COMMERCIAL & FINANCIAL CHRONICLE
v
The IBA Public Service Securi¬
Public Service Securities Committee of IBA
manship of
delivered its
h tion
held
Issues Since
report
at
Stocks. Utilities Faced With Labor
op¬
enlarged
for
f
i
of
at¬
ing rights of
equity stock¬
are
still facing the
Albert T.
The
industry.
Armitage
text of the
port follows:
re-
r
The year
under review by. this
report has witnessed the largest
volume of utility financing since
1936.
and
1942
is
slightly above the
highs of 1937 and 1933. The util¬
ity bond market, which showed
very
little change during
1943
and 1944, advanced substantially
in 1945.
Moody's Composite Av¬
erage of Yields on Public Utility
Bonds, which remained close to
3.00% throughout 1943 and 1944,
is currently close to 2.80%. The
result was a greatly accelerated
refunding < program
which
ac¬
counted for virtually all of the
titude regard¬
holders
issues in 1945.
new
and
while
business
the
rates
bentures
of
electric
the
reached
a
and
total
gas
of
A number of additional
bentures.
are
in sight before
,
Management
;
$1,-
145,000,000 on Nov. 10, compared
$925,000,000 for the entire .year
1944 and $337,000,000 for 1943. In
addition, the Bell system entered
the capital markets for a sum of
S455,000,000
of
long
term
de¬
to
issues
:
largely
with
higher
depend
which
will
money
fac¬
utilities, now that the
tax
question has been
the
Federal
clarified
for
ture,
much the
are
the
fu¬
immediate
same
as
those
success
problems
volume
to
appear
sustain
issue market
ess
A
The management problems
ing
the
on
these
are
solved, and there is some ground
for feeling that demand for new
of
new
course,
Problems
domestic
on
the costs of
furnishing
it v are
also
higher.
New
capital
requirements
will
are
as
refunding
wave
in
of
dependent
the
new
calendar
tion
■■
is
of
of
curities in
active
runs
its
on
serious
most
fair
can
developed is
adjustment of the
the
equity
be
utility
no
problem
rights
stockholders.
a
of
There
question that the rise in
equities
has
restored
to
them values which had oeen given
for lost three
The
ago.
years
new
course.
refunding
the
is,
of
the Govern¬
r
.
J
desperately
slow
some
of rrjaking recapital¬
process
ization
effective
cumber¬
makes
it
difficult to adjust to chang¬
very
ing
plans
and
conditions.
Years
have
gone
It
is
of
the
hard
reduction
rate
Wage
,
enthusiasts
ciation
reduced manpower and large pay¬
ing the
to
pass ;
publicly
to
We have, how¬
ever, during this
sale
by
holding
year
blocks
substantial
sues
of
common
companies
the
of
whole
is¬
and
seen
lic.
demand
ities.
in
for
public utility
vol¬
utility
Dow-Jones
common
current levels is
average
stocks,
which
take
same
no, reason
in
at
use
however,
370% of the low
their
of
electric
industry.
will
current
Electric
have
to
on
a
firm
Public
UNLISTED
TRADING
Members
New
\
York
NEW
&l
Stock
a
of
Securities Com¬
mittee— Albert
Chairman',
Frederic H.
William
T.
Armitage,
H.
Brand;
Brandi; John G. Flint;
by since the passage of the Hold¬
Hugh D. MacBain; Robert Mason;
Plight of Equity Shareholders
ing Company Act and yet
Nathan D.
From the
lacking judicial determination of
ity
point of view of util¬
holding
company
security
some
of the basic issues.
we
are
A review
rick;
McClure; Clay H. Sor-
Edward
K.
Adolphe H. Wenzell.
it
by
utilities,
rebuild
.
DEPARTMENT
Wertheim
period
legal foundation.
merchandising departments
SECURITIES
current
Service
INDUSTRIAL, RAILROAD, PUBLIC UTILITY
and FOREIGN
the
holding company structure placed
the
the
war
con¬
speedy clarification
al¬
is hoped will absorb the reduction
of
Asso¬
material
the
home
appliances, which
a
a
were
believe
to
make
security prices
reduced working week,
electrical
in
secur¬
This is most strikingly seen
the
the
action
any
buoyant
utility industry is ex¬
empt. Reconversion involves the
resale to retail customers of large
blocks of power used during the
war by war industries.
All esti¬
mates of the postwar market in¬
dicate a large volume of business
of financing is the increased
ume
a
and there is
:
The basis for this enlarged
for
how
lowed to pass without seeing
Electric
overtime.
demand
that
stock to the pub¬
se¬
in cash.
issues, but it would be
millions
to 201,000 employees. In 1941 they
paid 376 millions to 253,000 em¬
ployees. It is the fashion for labor
pay
Would
for
ments
see
or
if
utilities in 1944 paid $38R
1942
panies
ques¬
of these
carried
greatly
the utilities
operations with
war
their
substantial number of utility com¬
owned authorities.
on
en¬
tragedy
Question
on
to
tribution to
As to the wage question, the prob¬
lem arises from the fact that dur¬
$127,000,000 in 1944 and $22,000,-
"packages",
can
have
The preferred stock market was
proportionately active with a to¬
tal
of $145,000,000 compared to
reports of this Committee for
and 1943, it appeared that a
the
senior
Investment Bankers
of all industry—prices, wages and
reconversion.
The
activities
of
■
the
doubt
confusion '
on
construction.
v vl&r y.:-'
Perhaps
the most
interesting
development
came
in common
stock financing.
At the time of
is
confusion
the end
000 in 1943.
in
securities are
satisfaction
year.v
Preferred Stock Sales
the
place
There
senior
been held in check by the high
Of the taxes borne by the utilities dur¬
year's total to date of $1,600,000,- ing the war, but with the elimi¬
000 more than $1,400,000,000 was nation of the Excess Profits Tax it
for refunding issues which in turn
would
be
wishful
thinking
to
had previously refunded earlier suppose the regulatory authorities
issues.
No
long term debt was Will not try to translate a share
publicly offered for the expressed of the money released by the Fed¬
purpose of providing funds for eral Government into lower rates.
of
the
titled to par or redemption price.
which the year has
up
an
ment's financing program,
j.
owners
sufficient
the present proc¬
New issues of bonds and de¬
industries
system."
whether
Holding Act ;'V." ^••*•••:
/•.
well
SEC's
from
before
'
and
wages as
the
in pros¬
the SEC's definition of "additional
Prob-
Not Yet Been Accomplished Under Public Utility
:
reconveron
the
Reconversion
remarks
Court
of
now
recent case
a
Supreme
There
pointed
out
that problems
s
bench in
lems, and Fair Adjustment of Rights of Stockholders Has
;
public utility
financing but
o
and
,
view
timistic
constitutionality
Certain
pect.
There Is Prospect for Large New
Utility Capital Investment, Represented in Part by Common
con¬
an
1936.^ Though This Is Largely Due to Accelerated Refundings
Because of Lower Interest Rates,
The
Chicago.
tained
the"
"Death Sentence" is
Conven-
34th
of
Reports Largest Volume of New
ties Committee, under the
Chair¬
Albert T. Armitage,
annual report to the
2729
Co.
Exchange
YORK
7
Van
Horne;
,1<V
I,
America
to attract young men to the in¬
vestment
banking business and
to
of
Association
>
has
and
considerable
since
success
our
last meet¬
ing,"
reports
Julien H. Col-
lips, Chair-
a
sizable percentage of
of the
IBA
Educa¬
tion
Commit¬
The
tee.
training,
Banking
re-
sociation
in
Chicago,
members-
in
Los
1,500 copies of our, vocational
booklet have been sent to colleges
and
universities, while
various
Nov. 14 with one over
j More than
250
men
already
have
been
directed
terest
sources
H. Collins
the distribution of our
vocational
expressed
program
blueprint
houses have
mem per
an
that
inter¬
in
interest
the
the
attention of the
tificate
of
Association,
registered _by
houses.
Those; who
complete
the
126-
sa-tisf ac¬
The
of Achievement
classroom
supplemented by
tures
men
on;
April
work
will• be
12 special lec¬
which will be delivered
of long experience in
by
various
have graduated from the
fields of
investment banking and
in
banking.
The topics of these lec¬
and
stage,
now
tures and discussions
" ' . *
•
with the School
classroom.^
Commerce
are
Government and
will include
the
to
agreed
conduct
to
have
who
men
in¬
: is
.Association
; The
debted
these-"discus¬
they; are expected
important feature of
sions. because
to be
a-
most
■the course;- and
pose to
because we pro¬
much, of this material
use
in the development
lines and
the
with
met'
members.
our
group; education
committees in New York,
Chicago,
Philadelphia, Boston, St. Louis,
Detroit, San Francisco-; and Los
Angeles: In each community there
Is enthusiasm and- support for the
program.
It how appears likely
that training courses similar to
the
established
one
Chicago,
in
will be opened in at least
six
five or
in 1946.
other centers- early
thusiastic
unit
in
been
about
■
less
no
our -
plans
en¬
\
-V
•
^
,
•
v(
•
:
'
1
^
'
r
*
v
-
\
(
'
'
.
;
t
'•'l-' ■ y'') "d.v'.U "
'' \:l
.'*>''''*;Y
-rv.", '
j...;, y-
than
cost
of
centers. Y The
training course,
a
:
/
We
have
made
goody begin-;*
a
ning in organizing, a*" small: but
complete educational staff in the
Association's office; but the plans
of the Committee are capable of
ft-
v
30 State Street
Association
;: course;
sions.
inciuding
>
Our newly revised reading
'
i'
administer
Director is selected- to
the
work
which is already under
;y
;
Committee
The
feels
that; an
should ac-y
Director
Educational
as." one
duties, the
and
dent
faculty
interest in
We
are
eration
ities
preparing a new
to
of
the
administer
y;"--
15
member firms in the
our
"•:
and
cal
will
be, theirs.
Education
,.v
Committee
—
Baird;
Exchange
Merle
Howard M. Biscoe, Jr.; /
Bowyer; W. T. K. Collier; - >
Allen C. ; ;
El
B.
Allen
art;
Adolphyy
Tilghman;
Weltner; Leroy A. Wilbur; W.
W.
Wittenberg.
•
' ft
-
'
—
Sold
—
Quoted
established;imo
j
•
Exchange Place, Jersey City 2, N. J.
REctor 2-2881
: f
■'
•
Teletype:
JCY
102
Members New York
Chicago Stock Exchange
Chicago Board of Trade
Commodity Exchange, Inc.
120
,
BOND BROKERAGE SERVICE
Broadway
Empire State Building
Stock Exchange
NeW York Curb Exchange
Philadelphia Stock Exchange
The Sherry-Netherland
Specializing in Railroad Securities
NEW YORK CITY
BRANCH
OFFICES
PHILADELPHIA, PA.
ALLENTOWN, PA.
LANCASTER, PA.
SCRANTON, PA.
POTTSVILLE, PA.
YORK, PA.
MORRISTOWN, N. J.
BRIDGETON, N. J.
EAST ORANGE, N. J.
.
Samuel K. Cunningham;
Mclaughlin, baird & reuss
Members
Stock
V-'*'
Julien
II. Collins, Chairman; Andrew M. ry
Reynolds & Co.
York
;
responsibility of maintaining
traditions of our business y
of further, advancing its ethi- y
and
professional
standards, y
the
NEW YORK Telephone:
New
gen¬
activ-
The time will come when
future.
Cutwater & wells
RANKERS
in¬
vestment banking.
New Jersey Bank Stocks
Bought
INVESTMENT
-
of
his important
responsibility of car¬
rying forward an extensive; pro-;,/'
gram of field work with colleges
and. universities to promote stu- Y
cepf
First National Bank of Jersey City
.
I
J
expansion' and; dek j
when an Educational ■]
velopment
Boston 9, Mass.
New York 5, N. Y.
1
,|
rriuch. greater;
Commercial Trust Co. of New Jersey
30 Pine Street
1
,-
obtained, y y;y'*v?,'{■>Yyf,
/- Ewing; W. Yost Fulton; Harper U"
I To provide these members with
Joy; Waldo W. Mallory; John, W. .,
the benefits of our training pro¬
Piancoast; Clyde L. Paul; Donald
gram, we'plan to make available
Royce;. Lawrence E. Shaughnessy;;
td themy a complete copy, of the BUrdick Simons; R. McLean Stew¬
transcripts of the discussion ses¬
Investment Securities
.
this Committee last; June.
the larger
however, appears to make it im¬
practical to establish a school un¬
less'at least 25 registrants can be
Dick & Merle-Smith
give further, consideration
to the sponsorship of a newytex.tr'• I
book
in investment, banking as • i
recorn mended
in
the ; report of
!
the high
Member houses in smaller com¬
munities, have
those
k
The Association
members.
our
of study out¬
manuals for gen¬
course
eral distribution to
Municipal Bonds,
Management 'for1 both
Portfolio
Northwestern
of
lation.;
appropriate Cer¬
an
1946, the date on which the
first course will be completed.yv
■
studies of State and Federal Regu¬
will receive from the '"-During the /'past six months, the
Chairman of the Committee • has
26,
your
In cooperation
viewing young men who come to
course
Association,1
Committee ■ may
report to this • Convention
the first units of our training
t-hat-
now
TOWARD
pearly 200
hour
its fuilTim-
students,
member
satisfactorily
prospective interest are
It is with considerable
tioi'i
50
of
32
in this direction.
CAREERS IN
FINANCE, and they continue to
come
to
us
in large numbers,
booklet
if
and
in
houses
of
our
-
Angeleshave
of ,a simi¬
lar course An. Nov. 15, .which is
being conducted " in cooperation
with the University of California/
The Chicago course opened
capable of broader development,
we will
continue our efforts
'yy-VU:
to
various parts
country as a result of in¬
created in large part by
member
of the
Julien
and
announced the. opening
separation * centers of the Army,
Navy and Marine Corps have re¬
ceived
several thousand.
These
ues:
a
course
Central
than
t contin¬
p 0 r
carefully planned insurance companies and banks,
in,Investment i.Analysis of Railroads/and Public
is being offered by, the ^Utility .Bonds; Operation of the
States Group Of the As¬ Stock \ Exchanges; ' and
special
University,
these
already employed ap¬
plicants who have been sent to
them by us, many of whom were
recently discharged from military
service.'
- -•
'
About 5,000 copies of the/book¬
let are still available and will be
sent to members who wish to as¬
sist us in their distribution- More
,
man
";- ^
Education to Smaller .Centers. :
'.J;';'.' "k V;.y
'Ty
firms have
with
forward
University-—WillyExtend}
,,
of
should
carried
been
Training for Career in Finance
on
and Has Established School at Northwestern^
comprehen¬
sive courses of
training,
Issued Booklet
Investment Banking, Has
offer them
s of; recommended
textbooks
and' references, which has been U,
prepared during / recent months
should also prove helpful to many; :.;
list
Tells of Efforts- to Attract Capable; Young Men to
IRA Education Committee
of the Investment
"The program
Bankers
Thursday;*December 6/1945
CHRONICLE
THE COMMERCIAL & FINANCIAL
ONE WALL
STREET
NEW YORK 5
SYRACUSE, N-. Y.
Telephone HAnover 2-1355
;y- v
"
Teletype—NY 1-2155
y
'
Volume
V;
'
'
162
-
Number 4444
THE COMMERCIAL & FINANCIAL
CHRONICLE
The Federal Legislation Com¬
mittee, of which Charles S. Garland is Chairman, submitted the
following brief report to the 34th
IBA Federal
Legislation Committee, Aside From Boren Bill, Sees No Immediate
New Enactments.
"
■
vsMdmrnsmaaixmsmaM
Annual
Con-
* vention
of the
in
IBA
non-existent—the
Chi¬
y.. This
mittee
which
is
To
keep
recent tax
%
the
Secur¬
e.,
the in¬
the'
Committee
Your
aid in
minimum
exist¬
amendments, as
found
past
national
the
however,
year,
Congress
so
lation
Committee
which
are
Year
has
devoted
to
very
little time
matters
business.
dealing
for
last
in
In
.
•
-
.
'
.
as
common law are still
and
that
'■,$<■-'■ creasing
Committee
your
ward.
these
as
as
liabilities
markets
well
Edward
operative
in¬
are
surge
Hopkinson, Jr., Joseph T.
Johnson, James H. Lemon, John
K.
for¬
Our membership must not
MUTTON
1944
•
.
addition thereto,
the
amendment
Starkweather,
_
>
&
CO
ESTABLISHED 1886
'
Members New York Stock
of Section
Exchange
statement
will
within
fixed
a
become
period
effective
time
of
i'w'&y
vv
uInv
New
York? N. Y.
"
Philadelphia, Pa.) Baltimore, Md.
y-
IN
Lexington', Ky.
Boston, Pa.
v
;
-
Cincinnati, Ohio
Boston, Mass.
Dayton, Ohio
Portland, Me.
Concord, N. H.
OVER
"the II
COUNTER
SECURITIES
Underwriters —Distributors —Dealers
lllg SINCE III!!!
1914
PUBLIC
UTILITY,
and INDUSTRIAL
RAILROAD
SECURITIES
HoiiRsse&Trsster
Established,1914
:
;
'
'
.
Members
74
New
York
Security Dealers Association
Trinity Place, New York 6, N. Y.
Telephone:
.
-'
Teletype:
■.
BOwling Green 9-7400
NY 1-375...
Telephone:
National
WAlnut 0025-6
Bank
Building,
'■?
Atlanta
C. Langley & Co.
.
.
First
R.
Stewart, Lyle F. Wilson.
recom¬
we
MARKETS
"
in
Report of the Industrial Se-
Meanwhile,
membership that the
8(a) to provide that a registration
with
;
V/"I"*
extent
Book, to which reference is
mend
Or New legislation was practically
<•'
some
the
liability section of the Act
year,
the
_
was
}
This point will
contained in
forth
set
made.
concen¬
trated upon the winning of total
victory that
remind
endorses,; as
Report of the Federal Legis¬
our
to
feels it within its
proper scope to
except
requested
Committee
Garland, Chairman;
Albert T. Armitage, Hazen S. Ar¬
nold, James Coggeshall, Jr., Hal
H. Dewar, Richard P. Dunn, New¬
ton P. Frye, Stewart S. Hawes,
Carey S. Hill, Edward H. Hilliard,
objectives, the sugges¬
the
of
be. developed
is
Legislation
from
exemption
ted
The
our
to
gained; i.
the interest of the investor
needs
by the registrant.
the
filing,
"
V
Members New York Stock
Exchange
3
Teletype: AT 468
115
Broadway
.
respect
S.
$100,000 to $300,000.
economy.i
■
was
legislation amended better to
the
of
Federal
—Charles
bill--7!,|:
in
crease
ed.
and
capital.' Sympa¬
amendment
One
ities Act
having
new
legislation
soundly draft¬
> serve
date
extension
with
two matters can be detected in the
To aid in
[ \ / 3. To'
Charles S. Garland x
having
an
complacent
the liabilities of the Securities
consideration toward these
pending legis;
:;
"
ing
of venture
thetic
lation.
v
the
'
ment
inform¬
ed
2.
inconclusive
various
after
when
small business and the encourage^ .curities..Committee.
of ; newly
conceived
o r
!
and
discussions ^with respect to aid .to
three duties—
1.
be¬
on
is discussed
mittee,
charged prin¬
cipally with
itself
exceptions
the Boren Bill,
more fully in
the report of the Municipal Com¬
ing the hearings
'
Com-
cago:
become
to
Reminds Membership of Liability Section of Securities
Plus Common Law Penalties.
New York 6, N. Y.
McLean
/
V
Thursday, December. 6, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
2732
Municipal Prices Attained Record Highs
IB A
was /
Convention
on
of
Committee
Securities
nicipal
the
submitted
Nov.
27.
to the
Though
recounting the
favorable volu
m
and
e
tabulation
highs and the time,
may be of interest:
They are in
marked
contrast to
the record
Toledo,
Co.,
atten¬
n
settled
q u
estions
which
been
over¬
the
hanging
i
mu n
bond
These
and
the
the
November
1.90
2.14
1.69
November
,
August-September
May 7/:/.
the
Boren
Bill
riod
amount of
re¬
port follows:
year
those of
S.
U.
-
prices of municipal
all-time record
Territories and in¬
Period
Ending
Oct.
portion
Oct.
Act
Finance
"For
pursuant
are
the
to
Cor¬
which
to be made reads:
of maintain¬
purpose
ing /ahdpromoting the economic:
stability
the
of
country
or
en¬
couraging' the employment of la¬
Corporation is authorized
bor the
and empowered, under
such terms,
conditions/ and restrictions as the
Corporation
determine,
may
$834,393,924
639,289,469
/7 $1,473,683,393
$1,247,517,928
7/
to
1945
1944
31-
$620,128,087
627,389,841
Total
5d of
Section
of
Reconstruction
these loans
Long-term financing
Short-term financing
high. The Bond Buyer's index of
yields of twenty-year general ob¬
ligation bonds of twenty large
cities reflected an average yield
loans
make
to,
contracts with,
or
of
ities
one
States,
more
or
political
and
divisions of States,
According to the above men¬
circular,
the
RFC
will
make these loans by purchasing
the bonds or other securities is¬
sued by the borrower. It may pur¬
chase
general obligation bonds,
bonds,/ notes
or
other
obligations that prospective
borrowers may be authorized to
issue under applicable local law
revenue
valid
proposed
projects.
The v obligations shall
be payable from such sources and
secured
be
in
such
manner
interest
of
rates
15
BROAD
STREET,
or
dis¬
CHICAGO
PHILADELPHIA
INDIANAPOLIS
-
■
PITTSBURGH
as
of
to the policy of that
municipal
upon
with,
or
vate
The
encroaching
.
enterprise,
full
'7 "I
to
text
have
me
now
in
'
facilities where
cannot
can
we
make
a
on
not
do
or
needed
: make
to
projects
revenue
loans,
sound
ex¬
requirements,
will not
dealers
bond
before
bonds
estimated
where
only slightly
service
debt
where
and
is
project
a
completed and in operation/ Such
loans, which can be made by us
on a sound basis, supplement and
do not displace private financing
facilities, and we are authorized
by law to continue to make avail¬
able
such
assistance
to
public
agencies in order to aid the coil*struction of necessary and useful
public facilities.
-.
/
j*
"I
shall
with
you
be
any
pleased to furnish
additional informa¬
from us con¬
policy with regard
tion you would like
cerning
to
our
municipal loans."
...
V
\\
j
upon
pri¬
of Mr. Henderson's
your
to
In
follows:
;
letter of Oct.
public
28, 1944,
in
,
15
agencies,
our
the
Annual
we
case
I
County, Arizona
Maricopa
groundless."
is
regard to loans by this
Corporation
''7
know, there are many
in the municipal con¬
dealers
ceeds
that
about to
of
basis, and thus make possible the
carrying out of needed and de¬
sirable municipal projects. Such
situations mainly occur in mar¬
that
the part
policy
a
policy of competing
latter dated Oct. 26,
NEW YORK 6. N. Y.
BROADWAY
a
are
us
dealers
bond
(the RFC)
start
61
or concern on
the
to
response
advised
Henderson
we
of
Board
of the
Chairman
"Any fear
Exchange and other leading Exchanges
bond
buy
tjie RFC,
now
are
we
upon
777// f//"'
.
"As you
RFC
Mr.
Members New York Stock
less.
future
leaking of such loans. In
Co.
start
competing with, on encroaching
upon private enterprise is ground¬
ginal
(Corporation with respect
Carl M. Loeb, Rhoades &
that
dealers
Following
the
announcement
there was widespread concern in
our
industry as to whether the
son,
>+
WASHINGTON
TRENTON
Corporation
with
about* to
which
inquired of. Mr. Charles B. Hender¬
ALBANY
bond
ditions, and restrictions as the RFC
may determine in each
instance
borrower.
new
or
plan to
private lenders to
municipalities. We do not wish
to provide
assistance where we
know that a private bond dealer
or a group of them will provide it.
That has been our actual experi¬
ence
and
established pojicy- for
many > years
in which - we have
been
making aid available for
municipal projects, and we plan
no
change from such established
experience or policy. Any fear or
concern on the part of municipal
compete
desire
might be contemplating en¬
tering the field of state and mu¬
nicipal security financing in a
way that would reflect competi¬
tion with private industry.
We
5
NEW YORK
"As in the past, this
not now desire
count, and under such terms, con¬
the
years,
no
does
situations
such
for
during the W^tr.
constitute
struction of public
at
to
■
RFC
and
loans
periods of time, in such amounts,
light of all of the circum¬
stances, and as authorized under
state or municipal law applicable
,}9i
*
may
in the
Hemphill, Noyes CS» Co.
from
before
be acceptable to the RFC.
The loans may be made for such
as
-ac¬
press
operation
by
this
Corporation
and no expansion of our sphere
of assistance to municipalities to
displace that provided by munici¬
pal bond dealers.
■ ■/;,/.; /'V,,,'
tioned
shall
shortened
mu¬
of their securities,
or
and for such pur¬
pose the Corporation is authorized
to bid for such securities. * * *"
the
the
to
that
2
sub¬
and with pub¬
for
some
Oct.
Such
purchase
otherwise,
funds
from
both
State, or municipal law, such loans
or
contracts to be made through
obtain
on
available
corporations, boards, and com¬
missions/to aid in financing proj¬
ects
/authorized
under
Federal,
to
which you refer.
to
announcement
press'
Cir¬
counts, that such loans have been
lic
the
22
our
our
revised
present
loans are
available
from
RFC
to
public
agencies to aid in financing pub¬
lic
construction
projects,
we
pointed out, what was omitted
States, municipalities, and politi¬
cal
subdivisions of States, with
nicipalities,
2, the Reconstruction
Corporation published an
announcement $iat it was pre¬
pared to make loans to public
agencies through the purchase of
their legally authorized securities.
Such loans are described by the
On
the
including
possessions, totaled about $1,-
12-Month
bonds again set an
/;//
Finance
poration
500,000,000. A comparison of this
financing, divided into long and
short term, with like, financing
during
the
preceding y twelve¬
month period reflects:
:/7^7;://:
/'V'Sv
Committee's
securities,
Corpo-
ration
*
7,
That
pe¬
"In/
public agencies and instrumental¬
the
issues of state and
new
municipal
sular
now
have
to
seeks
Congress
The text of the
the twelve-month
ending Oct. 31,
1945,
sales.>. ,/
Finance
Reconstruction
RFC in its revised Circular No. 22.
1.59
1.35
;
During
powers
clarified.
This
1942
status of
tax
municipal
and
which
before
November
1945
"Authority"
that are
claimed by the SEC under the
Maloney Act over transactions in¬
volving state and municipal bonds,
issues
1941
ques¬
and
state
December
1944
Arnold
S.
Hazen
included
tions
1940
1943
i p a 1
market.
c
Yield
2.18%
Month
Year
have
/
in May 1933.
low of 5.69%
the
to
tion
u
of such yearly
&
.These volume figures were com¬
record of monthly
cular .No.
described in
are
and
former
Bill Passage
piled from the The Bond Buyer's
following
the
review
nold of Braun,
called
Each
May.
last
of
as
starting with 1940, with the
exception of 1942, u new record
high has-been established.
For
year
by
Bosworth
1.35%
of
Ar¬
S.
Hazen
titude of SEC and Urges Boren
S
prices in new
municipal fi¬
nancing
the
Co remittee,
headed
which loans
Taxability of "Authority Issues"
Still Awaiting Decision of Supreme Court. Boren Bill Not Yet Enacted By
Congress and Threat of Federal Fingering in Transactions of Municipals Not Removed. Municipal Securities Committee Condemns AtAlso Gains. Question of
Volume of Financing
Annual Report of the Mu¬
The
Report of Nov.
recited developments
of the State of Wash¬
ington et al
vs.
Maricopa County,
Arizona
al,
pointing
et
the U. S. Circuit Court of
out that
Appeals,
i
;
Consultants
on
Municipal
A Constructive Service to
CORRESP ON DENTS
Finance
Municipalities
;r
•1
■i
it:
Betts, Borland & Co..
.»
,
J. C. Bradford & Co
\V. L. Lyons & Co.................
E. W. Clark & Co.....
Cooley & Co........
..... ......,..
..
.....
States and other L
Sutro & Co..
Waller C. Hardy &
H. C.
Co..Charleston, Parkersburg, IV. Va.
.Boston
.
i..........
.
in
.Toronto
f.
development of plans for new financing,
reorganization
.San Francisco, Los Angeles
Wainwright & Co............
Westheimer &
assistance
& Co.. .Detroit, Grand Rapids, Saginaw
Wm. C. Roney
/
governmental units./ This service includes experienced
....
T. A. Richardson & Co.......
III'..,
Farwell, Chapman & Co.....................Chicago
Hunnewell & Co.......
Municipal Finance we render a. con- t
structive planning service for Cities,
;
.^Minneapolis, St. Paul
Co.............................Cleveland
Piper, Jaffray & Hopwood.
Prescott &
.Hartford
.St. Louis, Springfield,
As Consultants on
Louisville
i.
...
...Philadelphia, Lancaster, York
A. G. Edwards & Sons
<......
Kansas City, Omaha, Wichita
H. 0. Feet & Co..
.Nashville, Knoxville
.-.A•.......i. .Pittsburgh
Chaplin & Co
.....Washington, D. C.
Johnston, Lemon & Co
.Chicago
...New Orleans, Atlanta, Dallas
Beer & Co...,.
the
Boston
public
Co....,.........Cincinnati, Dayton
of
existing
debt
structures,
planning 7
financing of self-liquidating projects, and financial
relations.
SECURITIES.
WE
DO
NOT
BUY
OR
,
SELL
We are pleased to cooperate with finan- n
cial institutions and investment houses.
.
OFFICES
■
London. England
•
Chattanooga.
Tenn.
Ithaca, N". Y.
•
Buenos Aires, Argentina
•
Auburn, N. Y.
•
Middletown, N. Y.
•
;■•••
■;
.
-
...
Hotel St. Recis. New York. N, Y.
Elmira. N. Y.
•
Geneva, N. Y.
*
Syracuse, N. Y.
•
Utica, N. Y.'
•
►
Memphis, Tenn.
Hornell, N. Y.
Watektown, N. Y.
Wainwright, Ramsey & Lancaster
^
.7
70 Pine Street
New York 5, N. Y.
Telephone WHitehall 4-3540
"iiMH I'imilHM
I in i i l I * ? i I
*
,
#
Volume
162
Number 4444
THE COMMERCIAL
Ninth District (to wliiclvan earlier
decision of the District Court had
been
the
appealed)' did' not
merits
of
the
pass
on
that the motion which had
been
made in the District Court
by the
county for
a
not well founded and
was
have
been
denied
pleadings showed
that there
-
the
were
then
and
arguments
and
testimony
14,
the
judge of the lower
were
nounced
that
he
plaintiffs, i.e., the State
of
Washington and the Equitable
Life Insurance
Company of Iowa,
not
sought
are
/■
and
to
that
entitled
we
the
entitled
to
the
the
associate
argued
we
time
have
before
Appeals.
Port
■
of
writing
not
been
of
the
The
the last
Nov.
on
of
conclusions
of
2,
1945,
-Circuit
,
w
York
Circuit
the
viously reported
review,
Court
Tax
Court of Appeals
interest from the
authorities
is
present
form. '
*
power
over
to
assess
a
federal
the
joint
States of
Pennsylvania.
declined
-
to
New
The
pay
Commission
Department
entire
would
amount
of; the
Commission had
the
At .'the
time, it
same
We understand that
dismissed.
While
the
involved in
situation
Commission
Other
and
sharp controversy followed.
Developments were closely ob¬
served
by state and municipal
officials throughout the country
:
as
the
a
procedure
was
considered
step in the direction of fed¬
eral taxation of all state and
w
we* pre¬
bonds.
Originally
Department
mu¬
the
demanded
payment from the Commission of
$41,000 stamp tax plus
a
penalty
) Appended 1 to
references
decisions
to
this
report
certain
rendered
other
and
are
locally
are
and
The
tee
discussed
lastj
Boren
On
May
4,
introduced
;
Exchange
ulate
'•
and
W;
.
the
such
■"
;
•
so as
Commission
Be
it
to limit
the
in
United
to
reg¬
exempted
.;■/'//J '•J';"J
by the Senate
Representatives of
States
Congress
section
;
in
enacted
and House of
3
of
of
America
assembled,
the
That
Securities
Ex¬
change Act of 1934, as amended,
.v
is amended by adding at the end
thereof the following new subYy section::.
::Y/•r v.<';v,
Purcell and two of his
man
Commissioners
ciate
and
asso¬
several
members of the staff of the
Also
present
those
were
SEC.
repre¬
senting states and municipalities,
the American Bar Association and
industry.
our
: Mr.
v
M."
David
as
King
Wood
of Wood,
Dawson, New
&
"follows:"
'"The
*
'
■
conference
Securities
.
between
the
and
Exchange
Com¬
mission and representatives of the
States and municipalities and of
investment
bankers, which you
suggested at the hearing on the ,,
Boren Bill be held, was held in '
Philadelphia
on
July
10.
The
meeting was attended by a num¬
-
of
ber
States
representatives
and
by
as
representatives
vestment
banking
will
you
detail
the
the
well1
as
the
of
in¬
fraternity.
doubt be
no
of
..of
municipalities,
As s
advised
attendance
meeting, I will not attempt in this
those present.
The Chairman and ;
scribe
rules
two
of
posing
any
1,
alternate
regulations im¬
restrictions
with
letter
present,
re¬
were
respect to
the
members
as
of
the
the
the
of
names
several
were
Commission's;
consider what action the Commis- Y
sion might take under the exist- ;
2.
The
15
second
(c)
8
conference
purpose
to
(c) of
sentence
(1) of the Se¬
shall,
for
"The
the
Commission
of
purposes
the
application of this subsection in
the
case
of securities other than
exempted
securities,
by
rules
and regulations define such de¬
vices
'or
contrivances
as
are
.JJ"''"'•/
"Chairman
,./'
opened the
stating that the
meeting was not
the
the
Boren
Bill, but to
ing
act
and
municipal securities.
with
reference
speaking
States and
that
they
; 1
Purcell
by
of
discuss
upon,
Exchange Act of 1934,
amended, is amended to read
follows:
'
to
State
municipalities, I stated
and
that) they
were just as much s
indirect regulation as
,j
were/to
direct regulation.J
they
.
;
to
(Continued
on
page
2734)-
Y
.$
I
and
CORPORATION
BONDS
sr.:
c.c
& Co.
r....
s
i
&
:
c
/
•
■
;
strongly opposed i
any regulation of their finan- ■)
cial affairs by any Federal
agency,
were
MUNICIPAL
Phelps, Fenn
s
Where- ;
on behalf of the I
to
opposed
•
Commission :
with respect to section
this title."
J
^
as
./
mention
staff..
as
,
to
members
or
curities
un¬
May
or
purchase, sale, hypothecation or
negotiation
of,
or
otherwise
regulating transactions in, ex¬
empted securities; except that
this subsection shall not
apply
of section
Commit¬
in
the ;
at
"(d) No provision of this title,
shall be held to confer
upon the
Commission the power to pre¬
quirements
See
We
a
meeting for July 10, in Philadel¬
phia. In attendance were Chair¬
Securities Ex-
transactions
securities./J 'J;
state
Congressman,
an
amend
SEC.
on
state
the power of the Securities and
Bill
bill
the
V
•
change Act of 1934
mentioned.
that the House
of
af¬
this
Purcell of the SEC called
of
would
Subsequently in keeping
suggestion.
Chairman
with
a
final
took
'
to
Committee of the House.
bills
processes
.
To
Report of last
June, we reported on the hearings
on the Boren
Bill, H. R. 693 held
Feb. 20 and 21, 1945 by the Inter¬
state
and
Foreign
Commerce
derstand
enactment
two
:A Bin
•
court
enactments.
Boren
make
Committee
the bill under consider¬
York, representing states and mu¬
nicipalities ;at the meeting re¬
ported to Congressman Wolverton
Interim
our
to
the
on
ation.
immediate reference it is set forth
Appendix 1, Court Decisions, and
Appendix 2, State Legislation.
•In
The
the
the
below.
Your attention is directed to these
decisions
found
a
693.
of
before
action
through
bill, some
carry
Hoffman,
legislation
enacted
the
during
year.
Only decisions and state
legislative enactments considered
to be of general interest to the
municipal trade or of special sig¬
nificance
it
terim Report of last
Jpune and for
fi¬
State
if
security financing the
needed protection from SEC
reg¬
ulatory Jurisdiction. - A copy of
H;R. 3129
w^s shown in oUr In¬
coun¬
Legislation
be
that
Committee to
simplified expres¬
the principle contained in
R.
ford
particular
Court Actions
said
to
or
,
During the hearings last Feb¬
ruary on H, R. 693, Congressman
Wolverton suggested a meeting of
the SEC and the affected parties
unfortu¬
municipal
material, the
principle involved was deep seated
and far reaching. ,Y-
assessment
could
either
not
was
be
philosophy of the
sion of
H.
so¬
amount
this
law
H. R. 3129 is
sel for the Commission either has
or
will move
to have the case
nally
by
simpler exemption form.
the Commission to dismiss
suit pending in the Federal
and
,
decisions during 1944 in the Port
October
Jersey and
the
the
paid under protest along with, in¬
the
,.v
the
which
terest.
Commission—a
Court
two important
Treasury
licited
'
on
the
tax
ex¬
nicipal
of
of
this
pressly exempt under the law in
Treasury
way
U.' S:
of these
By
•
;
-
middle
:
refund
the
of
the
%';•• •"' Y and rY'fe'-'
'
'..'
Triborough Bridge Authority
v■'
the
■U manipulative,; d ec e p ti v e
otherwise fradulent." J
that he felt
was
would
Purcell
the
means
com¬
cisions
of
the
Authority
S.
About
and
proceedings "in the
year;
the Delaware
River
Joint Commission was advised that
as
New
U.
stamp tax upon the bonds issued
by
the
Delaware
River
Joint
men¬
J \
the
On
cases.
protest
hearings
is the desire of the
the
Supreme
Court denied the Treasury's pe¬
tition for review;
thus the de¬
the
case
of
S.
the
eight years ago,
the Treasury Department asserted
15, 1945. At
this report,
advised
U.
Delaware River Joint Commission
Washington and
plaintiff, the Equitable
tioned court
the
Court.
the
review
Revenue)
Supreme
paid
Mr.
amend
$10,497 of the
Commission. Shortly
Commission
the
nately confusing in that particular
attached
Federal
to
Internal
Court.
at
of
Court of Appeals.
was
partment
funds of the
statute
form.
$10,413 and interest which the
Commission decline^ to pay." In
August of 1943, the Treasury De¬
legal
its
Life Insurance
Company of Iowa,
again appealed the decision of
the lower court to the U. S. Cir¬
cuit
were
the
it insisted upon payment of about
menced
r'of
?: Somewhat
State
courts
at
Chairman Purcell
Treasury
Department
in
Washington. In 1939 the Treasury
Department admitted that close to
$31,000 of the assessment had
been erroneously
made; however,
missioner
bonds
time.
The
these
expressed
the
under
stand. and
relief
entered
of
bill, H. R. 3129: One of
theiSEC's objections to H. R.
693,'
by the Com¬
mission in 1933. Conferences were
held between the Commission and
,
levy
and
defendants
was
authorities
2733
substitute
bonds issued
the
judgment, which,
understand,
these
$2,050 and interest of $129.83
upon
During the latter pari of 1944,
the Treasury Department (Com¬
Jan.
would decide in
the
are
of
of
FINANCIAL CHRONICLE
after
Court
county. On Feb. 27,
rendered his decision
holding
he
both
petitioned
year,
court an¬
favor of the
that
bonds
go into the constitutional
phase of the subject.
Arizona
heard by that Court on Nov.
1944. On Jan. 5 of this
Court
need to
again
brought before the U. S,f District
Court for the District of
Tax
(Jan. 28,
1944> and the U. S. Circuit Court
Appeals (Aug. 24, 1944) upheld
the exemption «of the interest on
of
,
was'
case
S.
based upon the statutory provision*
and that neither court found the
..
The.
U.
from federal income taxes. It will
also be recalled that the decisions
genuine
issues of material -fact
involved in the case which should
have been decided
by the District
Court.
w'./,
'r,
'
the
the
should
because
It will be recalled that both
of
judgment
summary
New-<York Authority and the
Triborough Bridge; Author i t y
cases.
but held
case,
of
&
:
V:
;
-■i"
it
2734
THE COMMERCIAL &
FINANCtAL CHRONICLE
In Attendance at IBA
Municipal Prices Attained
securities or with
This position was supported by reference to corporate securities.
All
agreed that the Commission
Mr, Joseph Clark speaking on behad power to prosecute those who
half of
the
Municipal' Finance
Officers
Association
of
United commit frauds in the sale of se¬
States and Canada.
Mr. Purcell curities, both public and private.
•
;
(Continued from
page
1
2733
and municipal
disclaimed any intention or claim
of authority - on the part of the
Commission
tire
discussion
turned
ence
its
its
agencies aserted .that it did affectJ
/them most adversely, in which
position they were supported by
the representatives of the invest¬
bankers.
ment
seems
to
be
The
of
Commission
the
contrary
opinion,
,
"AH parties condemned fraudu¬
lent
transactions,
occurred
Whether
with reference
to
they
State
and
all
other
at the conference.1
Both
,#vr.
>
*"
for discussion
Acheson, A. Glen
Adams, William M.
Lazard Freres & Co.
•
,
Ainsworth, Walter W.
Aldworth, Richard J.
Allen, E.Ray •
»
,
^ley/.Williarp M. ;/'■//
/ /
government. The Commission .ap¬
parently adheres to the school of
thought that all citizens should
be required to 'conduct their - af¬
fairs
in
conformity with ? rules
laid down by the State, while the
Representatives of the States and
municipalities and of the invest¬
ment bankers jtdhere to the phi¬
losophy that acts detrimental to
the community should be declared
unlawful and punished, but that
in all other respects > the citizen
,
or
,
/
•
,
Chicago
Chicago.
.
securities, the
be helpful to
refinancing
nearest
on
facilities
of
our
firm
dealers interested in financing
behalf of clients.
glad to assist
office^ will be
working out details.
Richmond
.
.
Milwaukee
Pittsburgh, •:
Toledo
St. Louis
Pittsburgh
New York
New York
Minneapolis
Miami Beach
New York
Chicago
Chicago
Chicago
Ballman & Main
Chicago
First Boston Corporation
New York
New York
Philadelphia
■
Detroit
Barr Brothers & Co.
New York
Barrow, Leary & Co.
Shreveport
Chicago
Barrowclough, George
First of
Barry, Eugene P.
♦Bass, Jack M.
*
Shields & Co.
,
Denver
Chicago
Barcus,Kindred & Co. /
Kean, Taylor & Co.
Stein Bros. & Boyce *
:
Braun, Bosworth & Co.
'
Michigan Corp.
you
in
Jack M. Bass & Co.
Nashville
Bateman, Eichler & Co.
Los Angeles /
E. H. Rollins &
Chicago
Chicago
Soijp
Parker
Corporation «
F. S. Moseley & Co.
Harriman Ripley & Co.
Moroney, Beissner & Co.
Boston
New York /
.
Berblinger, Henry T.
Bickmore.J. Franklin
Bigger, Richard A.
Billett, L, Raymond
Bingham, W.G.
♦Bitting, Kenneth C.
Bixby, William H.
/
Houston
Continental Illinois Bank
Chicago
Merrill
New York
Lynch,Pierce,
Sills, Minton & Co.
;
Boettcher&CO.
■/
Chicago
Chicago.
\
-
R. S. Dickson & Co.
V
Kebbon, McCormick & Co, \
Bingham, Sheldon & Co.
Bitting, Jones & Co.
G.H. Walker & Co.
.
/.
Chicago
Milwaukee
St. Louis
St. Louis
& WEEKS
STREET, NEW YORK 5, N. Y.
Members Important Exchanges
Offices: New York; Boston; Chicago; Cleveland; Philadelphia; Detroit;
Portland, Me.; Providence; Baltimore; Bangor.
.
Primary Markets in
BANK STOCKS
MUNICIPAL
PUBLIC
—
UTILITY
RAILROAD
—
INDUSTRIAL
SECURITIES
Dealer
inquiries invited
Wr maintain active trad
-
Direct
contact
with Markets ins principal
financial centers
E. H. Rollins & Sons
GE VER & CO.
Incorporated
Incorporated
NEW YORK
40 Wall Street (5)
Tel. WHitehall 4-4860
Bell System Teletype NY 1-490
PHILADELPHIA
BOSTON
;
75 Federal Street
(10)
Walnut .Street- (2)
Tel. Pennypacker 0100
Bell System
Teletype BS 142
CHICAGO
135 South JLa Salle Street (3)
Tel. Central 7540
Bell System Teletype CG 530
SAN
Bell
Boston 9
67 Wall Street
"10 Post Office Square
WHitehall 3-0782
HUbbard 0650
'
-
FRanklin 7535
CG'105
System Teletype PH 268-269
Russ Building'
PRIVATE
(4)
■NX 1-2S75
,
BS'29 7
WIRE
SYSTEM CONNECTING:'NEW
N
-
TELEPHONES TO
HARTFORD, Enterprise 6011
Throughout the Country
YORK,1 BOSTON,
CHICAGO/ PHILADELPHIA, ST. XOUIS, LOS ANGELES
.
System Teletype SF 370
Offices or Representatives in Other Principal Cities
NEW YORK 5
231 S; La Salle Street
FRANCISCO
Tel. Exbrook 7900-
Bell
Chicago 4
1528
Tel. Hubbard 5500-
PROVIDENCE, Enterprise
PORTLAND, Enterprise 7008
«008
/,
New York
"Denotes Mr. and.Mrs.
40 WALL
•:
-
New York
Fenner & Beane
/
HORNBLOWER
/
New York
Ballman, John P.
Barbour, Phillips
.
i
.
New Orleans
Bosworth, Chanute, Loughridge & Co.
-
,
Chicago t v, •
Minneapolis;
Baker, Dudley F.
-
,
New York
Bacon, Whipple.& Co.
!
.
New York. /
,
Bacon, William T.
Baird, Andrew M.
A. B. Becker & Co.
;
,
/'
Chicago /
New York.
;
•
,
♦Bateman, Henry M.
Baum/Alvin H.
♦Baxter, Mark
♦Bayne, William
Beebe, Harry W.
Beissner, Henry M.
Bennett, Wayne R.
Bent, Maurice H.
pioneer in the underwriting and distributing
,
New York
-
,
industrial
Our
A/E. Ames & Co. :
Anderspn, Edward C/;1 Scott & Stringfellow;:,// ; r
Anderson, .Edward E. / Discount Corporatibn /. A /
Andrews, Edmund L; / American National Bank
,•/ '/
' j
Andrews, Roliiri G. :-/.•/ J, M. Dain & Co* /
Morris F. Fox & Co/
;
Angle, J.-B.
Geo. G. Applegate ;
Applegate, George G.
;,
Arnold, Hazen S.
Braun, Bosworth & Co.
"The
Commission's
point, /of
Weil
&'
Arnold ■*," /
/Arnold, H: Wilson / /
v r
view is that fraud should be pre¬
Stix&Co.
Arnstein, Frederic A.
vented. No one would object io
First National Bank
/Arthur, J. Howard
that, provided it could be accom¬
Hirsch & Co.
Asch, Jules
plished without doing more dam¬
Wm. E. Pollock &Co.
Should be frbe to conduct his own Ascher, H; Albert
age to the comihuiiity by restrict¬
F. B. Ashplant & Co.
affairs in his own way. The first Ashplant, Fred'k B.
ing the many legitimate transac¬
C. S. Ashmun Co.
Ashmun, Clifford S.
tions than is caused by the infre¬ Isystem might be likened to re¬
Atwill
& Co.
A twill, William, Jr.
■
quent frauds. It * seemed to me quiring all citizens to give bond
C/J. Devine & Co.
Augustine, Floyd
that this was the principal differ¬ |
(Continued on page 2735)
Ayers; William L.
/
.
.
St. Louis
Salomon Bros & Hutzler
Blair & Co.
Barclay, Wm.K., Jr.
Bargmann, Fred A.
Barr, W. Manning •; /
♦Barrow, Wm. Russell
will
Birmingham
C.-Allyn & Co.>
>
Harris Trust & Savings Bank
Altgelt; E. J., Jr.
Andersen, Jonas C. i
Barclay, George A.
a
Detroit
Sterne, Agee & Leach; •
Metropolitan St, Louis Co.
A;
Barcus, J. S.
As.
Braun Bosworth & Co.
Stranahan, Harris & Co.
1
Allyn, Arthur C/
concepts / of
r ~
of
New.York
:
.
"We are really confronted yvu"
two ' irreconcilable
Allen & Co.
,
Meeting
New York
♦Abrams, James S.
Agee, Rucker
.
.
of the Commission and
staff presented
persons
sides, in my opinion, are perfectly
sincere, but I am equally - of the
opinion that the. difference be¬
tween them is irreconcilable/
'
proposed rules which would rewhether regulation of the second¬ squire compliance on the part /of
ary market in State and municipal purchasers and
sellers - of State
bonds
adversely ; affected - the and municipal bonds, regardless
States and the municipalities. The pi the fact that the transaction
representatives ■ - of these public might be perfectly legitimate.
/
upon
staff
,
members
and
between the Commission
present
Commission, however,
evidently feels that this power is
not
sufficient,
because
several
to
regulate directly
the financial operations of these
public agencies, so that the en¬
"The
.
Thursday, December 6, 1945
1
CVplume *62
Numfcer 4444
27SS
r
K
Municipal Prices Attained Record ffighs
Zli
William Blair ,& Co.1 /
Blair, William-McC.
Blake, John L/ "
"
-
Chicago
Eaton&Howftrd
a
Boston
'
•
;,,,(Continued from page 2734)
to keep the peace, instead of sixnply punishing those, few who com¬
/
"
8
©lake,* Fred
V f,'v\ ■* iCr,uttenden.&Co. v ; \ ,,
>
Chicago :
*Blakely,-W/H. v; v / *
Blankenship^Gauid & Blakely-Portland /•'
^Blancbett, FredciHc.Jv Conrad,- Bruce & Co. •//* / Seattle »V,
V^lan^n^i-PjFreaiVI.'-- Blaukenship, Gould s BlakelyPortland
©losser, Joseph;
:, /; /Straus .&Blosser
Chicago i
8
Blunt,.Jbhh-E .:3rd V :
' Lee Higginson Corporation •y Chicago *
Barr
:
Brothers •& Co.
«
v
Bogardus, ©.Hurley
itiNew^orkA'':.'
•Ohio Company *v
-Bales*, Ewihg'X.
f Cphh^hus
<
Boiger, John F. Shillingiaw/Bo'lger & Co. :
Chicago ?*•'
>
Banner, DpugfeisG. -/ •'••> Bpnner%.Gregory.:;\k
New^
Alex; Brown&/Sons,
; /Washington
Booker/Y/EV 1
'
mit
i,-
.
,
Tucker; Anthony & Co..
Stein Bros. & Boyce V
Calvin Bullock
,,
/
,
;/
NeW york
v-
/
-.
.:
:i' "New^York-:
^
fiBradiey,S^Whitney
Edward M. Bradley ^'Co. New Haven
:i
Raine, ;Webber^Tacksort•/
"•/jOhicaig'o'v.
& Curtis
(v; a- /-'/l/
*•
Eaton & Howard i/z(///:>y/; "Boston"
Brand, William H.
WisconsinCompany;
Bradley, Mablon O/;;
r
Br ay spa w, DphaldB,
Brenmng, Louise
'/ '
•Brent, W. Rufus
1
•
.
.
•
(
<
•'
r -
;
•
/
;
Atlanta
& Curtis
1
,
;; !
Chicago
:
manner (r in which/ all trans¬
actions in. securities shall he con¬
ducted." The representatives of the
public agencies and.of the invest^
meiit/hankers believe. in punishing! those who commit frauds, but
alio wingcpmpletefreedom^for the
transaction of legitimate business.
the
fraud in connection with the
...
-
.
(
,
public securities made by the
present Commission is not satis¬
factory. The States and munici¬
law of the interpretation of court palities take the position that they
decisions made by the. Commis¬ should not be asked to rely, upon
,
.
sion's
legal staff, regardless of; the-vacillating- views of ,a Com¬
whether -such interpretation may/ mission, the personnel of i which
be correct
^pr erroneous. If the changes from time to time. That is
interpfetatiofe is correct, no such, personal government. Are the
rule As necessary,, it is the law in States and -municipalities unreas¬
any (event.
If, it is incorrect, it onable in expressing a preference
should not. be made the law by for government by law?. /. v
ah administrative agency. - That/
"The'position of the States and
municipalities as/set forth* at the
?..
purf- -
conference
or
can
be
stated
*
very
■i
indisputable that
simply. They contend:
"1.
That it is
regulation of the secondary mar¬
transactions in
public securities. It,;
has merely announced that it haspal bonds. >1 suggested that in abandoned proposed rule X15C1view. Of that statement the Com¬ 10, but it is -still considering other
mission made /a very poor case regulatory
measures
affecting
for the need for regulation' in the. State; and
municipal securitiejs. if.
chase
Briggs, J. H.
!y.-//v H. M. Byllesby & Co/
*
^
Chicago
Greene & Brock*
*
-Brock, R. M.
Dayton
Broome, Robert E,
Guaranty Trust Company
-New York
■
Dean Wittei5 &' Co.
:
-Brown, Austin' /•./"
New York
Salomon Bros. & Hutzler
Brown, Harry
Chicago
Boettcher'& Co.
Brown, J. Fred
Denver ;
■New York
Allen & Co.
,:'/s
*Brown, William T.
Marine Trust Company
Buffalo
Browning; Homer;
Detroit Trust Company
Browning, McPherson
1
Detroit,!
New York
Bryce, T. Jerrold
t
Clark, Dodge & Co.
Buckley Brothers
^Buckley, Walter W.
Philadelphia
New Orleans
Buckner;ErrolE.-./ -- National Bank of Commerce
Detroit Trust Company
Detroit •'
fBuhr, Oscar L. /
Homblower & Weeks
Buhse, Howard E.
Chicago
Calvin Bullock
;
Bullock, Hugh
New. York
:
*Burge, John D.
Cleveland
Ball, Burge & Kraus
Harris Trust & Savings Bank
Chicago
Burgert, Woodward
/
New.York
Burke, William T.
Bacon, Stevenson & Co. ;;
Burlingham, J. Preston .Bacon, Whipple dc Co.
Chicago:
/
Union Securities Corp.
New York
Burrows, J. B.
National City Bank
New York
Bush, Rollin C.:
r.
?
New York ,; /
Kuhn, Loeb & Co.
8
Buttenwieser, Benj .J.
Butcher & Sherrerd
Buzby, William D., Jr.
Philadelphia
•
in
•
s
New York
reflection'
/ • "It was undisputed that fraudur
lent! transactions in public eecurp
ities ; rarely occur/ A member of is. the function of Congress. *
"In my opinion the parties tA
the Commission's staff- admitted
that the Commission, since its or¬ this controversy are as far apart;
ganization in the year 1934; haji as ever. The Commission has not
prosecuted but * two dealers for- disclaimed
power - to
regulate-
' ,'
V
upon
•
Milwaukee
/Chicago/
*;
Eastman, Dillon & Co.
Faine, Webber, Jackson
•/
h-
_
^
'
©rid gen, Clarence J.
i
;
i JulienCollins & Co.
'*
'
'
Distributors Group
-V,
.
•
/Baltimore
-
,
.objectionable, but
frauds can. be prevented, cjr •it seems to me to amount to the
at .least.mininuzed .by prescribing enactment by the Commission into?
,
Borkland, Ernest W.j Jr.
Boyoe, C/Prevost ■'-./.*.
Bradford, H; A.;:
'
;
Bradley, E.Holbrook /
disturbances.. The Commis¬
to ;be of the/opinion
that
■
.
>
sion-seems
ppsed rule would simply fee a fraudulent transactions in securi¬
codification of the existing law. F ties, public and private.
stated at the hearing that I .did;
'WA mere disclaimer of the pow¬
mot -think such a rule would be; er of regulation ovep transactions
ket for their- securities by a
sale of State-and munici¬
era!
-
Feci-,
agency adversely affects the
primary market, and thereby ad¬
versely affects their financial op¬
erations.
z
'
•/'
"2. That
through such regulation
public/securities.: '
j •the Commission does not; assert, it would be possible for the' Fed¬
such
"A' member of the Commission's
power
of - regulation over eral government to control their
staff suggested a rule declaring it transactions in State and munici¬ finances.
'
'
to be a fradulent transaction if pal securities, it seems reasonable
u3. That fraudulent transactions
securities were bought or sold at to suggest that it announce its ap¬
in their securities are so rare and
a price which bore no reasonable
proval of the Boren Bill, which inconsequential in amount that the
relation' to the current market,' simply undertakes to state that if
public interests do mot require
if apy. .He stated that the courts possesses no such power while such regulation.
have declared this to fee the law still leaving it possessed of all the
"4. That in any event regulation
fjeld* of
.
in
any
event, and that the
pro-
power
it
now
has
to
prosecute
(Continued
on page
2736)
.
,
Goldinan, Sachs & Co
'
,
^Cahn, William ML, Jr.
Caldwell, G. James
Callaway, Trowbridge
Campbell, Douglas ?
Cannon; Francis A.
Carlwell, Marion H.
Carson, James H.
Carpenter, Frederick B.
Carr, Frank C.
;
^Carrihgton, W. G., Jr.
••
Commercial & Travelers Letters of Credit
Louisville
\
NewYork-V
Chicago
Chicago
V
:
?
Foreign Exchange
New York
20SSo.'LaS*lI«St.,Chicago4
V /
(Continued
v
on
page
..
Commercial Papei'
Detroit
New York ■'•
,
Salomon Bros; & Hutzler
"'Denotes .Mr. and Mrs.
,
New York
i
,'
First Boston Corporation
J. J. B. Hilliard & Son
/
j
j'i
St. Paul
Dick & Merle-Smith
First of Michigan Corp.
:t"
Street, New York 5
Investment Securities
New York
Henry Herrman & Co.:
Caldwell-Phillips Co.
John Nuveen & Cp.
John Nuveen & Co.
Ira H^upt & Co. *
30 Pine
2416 Chestnut St.,
2742)
,
■
■
75 Federal Street, Boston-10
814 North
Phila«ielphia 2 /
Broadway, St. Louie 2
MUNICIPAL BONDS
fMUNICIRAL
LEBENTHALgCO.
135
BROADWAY, NEW YORK 6,N.Y.
.
REctor 2-1737
BONDS/?
f-BONDS^
IM'OPD'IOTS
IM'OPD'IOTS
L«*tKTHAl.*C(X
'
J'A
"t
STOCK <r
BOND
•il
4'.-
f
h-
BROKERS
INC.
Investment
VILAS 6- HICKEY
EUROPEAN AFFILIATIONS:
Members New York Stock Exchange
Anglo-Continental
Adler
49 WALL
&
Co.,
Exchange
Limited, jL<mdon
A.-G., Bankers, Zurich (Switzerland)
STREET, NEW YORK 5, N. Y.
TELEPHONE:
HANOVER
Teletype: NY 1-911
2-7900
NEW YORK 4
30 BROAD ST.
Bell System
Teletype NY 1-515
1
Municipal Prices Attained Record Highs
is
(Continued from page 2735)
the panacea for all evils,
not
and
that
the
Commission
of
power
tion, which is
prosecu¬
vested in the
now
will
which
and
re¬
main vested in it if the Boren Bill
is
enacted, is an adequate means
for
the
checking of fraudulent
transaction in public securities.
*
behalf
"On
the
of
and
States
municipalities I wish to say that
the conference merely confirmed
my belief of the necessity for
enactment of the Boren Bill."
The ..Municipal
Association
States
of
the
United
and
if control of any
kind is started in
the secondary market in munici¬
pal securities then all municipali¬
Canada, an organiza¬
consisting of 1950 public fi¬
officers representing mu¬
nicipalities of forty-eight states,
was represented at the conference
by Joseph F. Clark, City Treas¬
urer
of Wildwood, New Jersey,
and Mr. Earl E. Hagerman, Direc¬
tor
of the
Finance
of
Dayton,
Ohio, a past president of that As¬
sociation.
In
its
report of the
meeting, approved by its Execu¬
tive Board, many pertinent fac¬
tors
are
pointed
out.
Among
'
them:
as
well
as
all
future
bond
all presently
municipal
debts
to
issues
as
outstanding
become
the
rates
on
or
Philadelphia
the
in
price of higher interest
primary financing be¬
it is axiomatic that the
sec¬
the
step
toward
control
fraud
in
any
ment."
is
of
power
of
phase of municipal security
dealings through the machinery of
any Federal commission, will simr
ply be an entering wedge for fu¬
ture and probably other stricter
controls of other segments of fis¬
cal
operations of local govern¬
cure
or
state
well
as
as
municipal securities,
in transactions in other
1933
or
suggestion that that pow¬
changed in any way whatso¬
Dealers in "exempted secur¬
ities"
find themselves in any court con¬
test to determine
to civil and criminal liabilities for
wish
whatever
to
legislative intent
to where Federal control starts
and
stops in
local
the fiscal affairs
of
power
to prosecute
government."
debt,
as
The power to
well
.
:
Callahan
307 Mich.
sessment
vs.
City of Berkley,
701, involved special as¬
general obligation bonds
issued by the former Village of
Berkley, a home rule village. The
Supreme Court of Michigan,held
that
1925 amendment to the vil¬
a
rule
act
"excluded
special assessment bonds from in¬
home
lage
the
in
clusion
limitation"
debt
though the bonds
even
the
carry
continent general obligation of
the
\jflage. About two
the
same
court
important
years
in
this
which
sustained
claimed
by bondholders that
cial
ago
handed down
decision
the
an
case
rights
spe¬
assessment bonds and tax
an¬
ticipation notes of Berkley, under
consideration, are valid general
obligations of the city and
are
not
sion in certain respects. The above
on,
appeal was made to the
an
court for clarification of its deci¬
in response
/
Court Decisions
any
in
the
refer¬
report,
will be made in this
appen¬
only to such of the court deci¬
sions
handed
down
during the
dix
prosecute fraud or
considered of gen¬
to
the
municipal
of special significance lo¬
year
that
eral
interest"
trade or
are
following comments
these
decisions
are
based upon the Committee's un¬
derstanding of the situations and
The
cally.
concerning
reference
for
intended
are
accordingly rendered
to that appeal.
;
Council of Village of Allen
In
Park
stated
As
ence
full
,
,
Michigan
Albert J. T. Woll, E. B. Wulbern.
Report of the Municipal Securi¬
ties Committee—Appendix 1
fraudulent transaction. The SEC
has
court.
subject to debt limitations. Later
.
a
this
is still pending in
case
decision was
are
ment of
violation of the law.
"All newly issued
sub¬
offi¬
government
no
that
Qircuit Court of Ap¬
thq^fime of writing
B. Morrison, Louis W.
Stayart, Fred C. Ulrich, William
H. Watterson, Elmer L. Williams,
Meier, A.
no
be
er
Milo S.
ley McKie, J. W. Means,
Exchange Act of 1934. There has
been
George L. Martin, Stan¬
S. Liner*,
the Securities
now, and upon enact¬
either H. R. 693 or H. R.
3129 would continue to be, subject
have
G.
Heimerdinger,
Leland
M.
Kaiser,
Walter
D.
Kingston, Newell S, Knight, John
John
Hawes,
securities, under either the Secur¬
ever.
"Municipal
cials
Jr., Douglas H. Campbell, Walter
W. Craigie, F. D. Farrell, Joseph
H. Fauset, Francis P. Gallagher,
John
S.
Hasfurther, Hardin H.
fraudulent transaction
ities Act of
Arnold,
Chairman;
Baum, Edward Boyd,
K.
George
question as to the
the SEC to prosecute
and
S.
—Hazen
no
a
modify
the
way
Municipal Securities Committee
for the whole
with
States."
United
There
"Local government has the fear
any
the
lies
any
principle of the Boren Bill.
Congress and
the enactment of definite legisla¬
tion favorable to municipalities in
question
in
would
that
the need for the enactment of
Commission
the U., S.
report the
markets for state and
or
ing business in such securities.In our opinion the conference
with the SEC resulted in nothing
degree, but we also be¬
lieve that
ondary market vitally affects the
primary market; The corollary of
that is, of course, higher taxes."
that
some
to
peals.«At
municipal security financing or
dictating the manner of transact¬
have modified
may
intentions of the
fraudulent transactions is not de¬
pendent upon SEC'S power to de¬
fine fraud by rules or regulations
nor-does it justify the SEC regu¬
lating, directly or indirectly, the
facilities
"We feel that the conference in
their
well
States,
agencies, as
states and counties will have to
pay
as
"Are
United
the
in
ties
subdivisions
tion
nance
-
studying all aspects leading from
the Commission's proposals, that
cause
Offi¬
Finance
cers'
the
as
subsequent
purchases. and
sales, should move in a free and
unhampered market. This is an¬
other phase of the difficulties our
municipalities may expect if pro¬
tective- legislation is not forth¬
coming."
jected to direct or indirect finger¬
ing by a Federal commission?"
'
"We are of the opinion, after
Thursday,* December 6,' 1945
FINANCIAL CHRONICLE
.THE COMMERCIAL &
2736
Allen Park Village Clerk,
vs.
309 Mich. 361, the court
the
village
held that
home rule act which
provides that no village shall "au¬
thorize any issue of bonds except
special assessment bonds ... un¬
less approved by three-fifths of
the electors voting thereon" did
not
require
electoral vote on
an
special assessment bonds carrying
contingent general obligation
the
of the village.
pur¬
Ohio
only. Counsel should be con¬
sulted in each instance for specific
poses
information
or
advice.
.
ruled
recalled that the de¬
cision of the
U.
District Court
S.
for the Western District of Louis¬
Evangeline
Parish
case, involving the
call, prior to maturity, of bonds
always
considered non-callable,
in
iana,
School
Government
Provincial
the
Board
favorable to the bondholders.
was
reported this decision quite
fully in our Interim Report of last
June,' advising that the
School
Board had appealed the decision
We
Industrial
Municipal
Public
Railroad
Utility
Circuit Court of Ap¬
U. S.
peals, Sixth Circuit, in a decision
handed down February 26, 1945
-
Louisiana
It will be
The
against
non-consenting
bondholders who were attempting
to
prevent the Village of Solon,
Ohio, from taking its Gallagher
Act refunding plan under the Fed¬
eral
Municipal Bankruptcy Act.
The
court
further
charged the
4.5%
non-consenters
with
the
court costs as a
penalty for delay¬
ing the proceedings. The U. S. Su¬
Court
preme
refused
to
review
this decision.
June
On
6,
V
1945,
the Supreme
:
Primary Markets in Bank & Insurance
Stocks
Hartford Insurance Companies
Connecticut Industrials
Wood, Gundy & Co.
*
>
American Hardware
Automobile
Hartford Fire
Bristol Brass
Aetna Fire
National Fire
Russell M'f'g
Aetna Life
Phoenix Fire,
Standard Screw
Conn. Gen'I
Travelers Ins.
Incorporated
Wall
14
Street,
Bought
New York 5
——
Sold
*—
Quoted
i&x/VkKi^etdaCo.
,
Members
Principal United States
and Canadian Exchanges
Toronto
Montreal
Vancouver
Winnipeg
London, England
Net markets
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UNDERWRITERS
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Conning
to:
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and Ballard,
DEALERS
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Successors to HIRSCH, LILIENTHAL &
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and
NEW YORK 4, N.
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j
BRIDGEPORT
Hartford,
Conn.
the: commkwctal ^vftnanctal chronicle
Volume'162 ; Number 4444
2737
___
v,_(, ,
Court of Ohio in a 5 to 2 decision
the
that
ruled
real
If
maintenance of
the
operation
the
of
the
ing venture the only
property
; The
a
and, stand
I
any
an
appeal from
of
review
a
;•;>
,
,
the
It
case.
was
by that court on May 21,
1945.
"
'
in
does
Green
Tom
The
County
case
only to original bonds,
opinion of attorneys
pertains
and
the
not
settle
the
oT.
status
re-.
county not issued under the stat¬
ute directly affected by the Coch¬
IBA
decision, but where the coun¬
attempted redemption in like
manner.
The suit was originally
brought/in the District Court of
Potter Countyi - which held the
bonds to be callable. Upon appeal,
PAST
PRESIDENTS
ran
ty
Court
the
of
Civil
Appeals
1920-21
*
1918-19
-
.
,
...
1915-17
re¬
versed
the. decision of the lower
court. The county then appealed
to the Supreme Court of Texas
which declined to review the case,
thus
the
upholding the contention chat
bonds
are
State
-The
of
callable.
Legislation
Legislatures
states
year.
not
were
in
of 44 of the
session during the
Referred to below are some
the
enactments
affecting mu¬
financing, considered of
general interest to the municipal
trade or of
special significance
locally. The comments are based
(Continued on page 2738)
nicipal
Roy
W.
C. Osgood
G.
Baker,
Lewis
Jr.
B.
Franklin/
funding bonds of issues authorized
Suit
controversial
the
under
is
pending
now
statutes.
(The
National Bank of El Paso
State
vs.
Tar¬
the
District
County, Texas,
17 th
Judicial
District,
against
Tarrant
County
in
connection
with the call for refunding pur¬
poses of a bond issue of that coun¬
ty. There is another suit, like¬
wise
previously
reported
(St.
Paul Fire and Marine Insurance
rant
County)
of
Court
of
re¬
an
in
Tarrant
'liMFSL
BONDS
.
STOCKS
.
Company vs. Garza County, Tex¬
as) involving the call for refund¬
ing purposes of Court House and
Jail bonds of Garza County.'
de¬
of; the State Board of Tax
Appeals in which that body held
Cleveland transit system ex¬
empt from such taxes. Following
the decision of the State Supreme
Court, the State Department of
Taxation
instructed
the
County
Auditors to prepare a list of all
.
the
municipally owned utilities.
Texas ;•
,V.:
declined
case.
a
"/.'C
'■
«
Previous reports
for
above. decision is the out¬
growth of
cision
■
advised of de¬
velopments in the case of Annie
Norton, Trustee, vs. Tom Green
County, Texas involving the call
of county bonds which were di¬
rectly affected by the; Cochran
County decision. The conclusions
of the
courts,
apparently gov¬
erned by the Cochran County de¬
cision, have been adverse to the
bondholder.
An application was
made to the U. S. Supreme Court
to sell
rehearing of the
;
:,{■
!■
los¬
a
recourse
sultant, loss." ThO court denied
appeal for
future.
transit
the bondholders would be
the
of establishing the tax ex¬
emption of such properties in the
pose
property.
system should prove to be
the * pur¬
for
amendment
tional
properties of the transit system of
the City of Cleveland are subject
to taxation by the state, county,
city and school district. The court
held that1 such transportation is
not a governmental function, and
that the city's transit system "is
engaged in a private competitive
business; for profit, and while
such property is publicly owned,
it is not used exclusively for a
public purpose." The court also
pointed out that "Public property
used exclusively for any public
purpose is exempt from taxation
for two reasons:
(1) it is pur¬
chased and maintained by public
money derived from taxation and
to
tax
such
property
would
amount to taking public money
from one pocket and putting it in¬
to another, and (2) the product of
the
expenditure of tax money
should not be made subject to an¬
other tax. The property here in
question was not purchased with
public money. The city is in no
way liable for the payment of the
mortgage revenue bonds or for
the
Consideration is being given to
!
legislative action and/or constitu¬
and personal
Another
reported,
decision
Cochran
to
litigation, previously
growing
out
of
the
Potter County
is
with
(Gavin
resDect
vs.
Pot¬
tfCETS maintained in all classes of Canadian external
ter "County,
187 S. W. 2nd Series).
regard to the call of
Hospital Refunding Bonds of the
This
i
in
is
and internal bond issues.-
Stock orders executed
Exchanges,
or
WIRES
PRIVATE
OVER-THE-COUNTER
the Montreal and Toronto Stock
on
net New York markets quoted
on
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request.
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Members New
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Thursday, December 6, 1945 ;
CHRONICLE
THE COMMERCIAL & FINANCIAL
738
water, gas or electric
heating or power
plants or airports; to be owned ex¬
clusively: by the city,
;
producing
Municipal Prices Attained Recoid Highs
(Continued from page 2737)
pon- the Committee's understandpf the legislation; For comlete information,
reference
hould be made to the full texts
ng
f the
measures.
Unlimited ad valorem taxes on
real property must
now
be pledged for payment of
bonds of out-of-state cities.
{
taxable
all
The
other
i
requirements that cities of
states be incorporated 25
has been eliminated, but the
population requirement of 20,000
has been retained.
A new-section has been added
years
Connecticut
;
governing the investent of funds of Savings Banks
n Connecticut was changed
The
law
rough the enactment of Public
328, which became effec-
ct No.
!ve June 26, 1945.
Among the irn-
changes is the provision
fixed percentage of the as-
ortant
hat
a
ets may be
invested in the bonds
state in the United States
has not defaulted within the
f any
at
receding five years on any por-
principal or interest of any
issued by such state
1, 1890. Under the
law a default by the state
ion of
bligation
ince January
Id
disqualified the
default
y the state within 15 years disualified bonds of cities within
ithin
20
years
nds of such
state and a
requirements for no
efault by cities has been set une
state. The
"er the new law at
ut reference to
5 years with-
state defaults.
limits for bonds of
Pities in states other than Connec!
The
debt
from 8%
debt," as defined
in the law. There must now be in¬
cluded in this 9% limit all over¬
icut have been increased
to 9% of the "net
lapping debt as defined in the law,
instead of the city's proportionate
share of county and town debt.
providing that a percentage of its
deposits may now be invested by
any
Savings
Bank
in "bonds
which, in its opinion as entered
upon its records, are orudent in¬
vestments for it to make."
.
Provisions
are
also included au¬
thorizing the investment of a fixed
percentage of assets in Housing
Authority bonds which meet the
.
of its assessed valuation for such
light
f works,
.
7 A .feature of the new Constitu/; services, or any/ combination of
as are provided by law;
•these.7' The - only ,*:restrictio'n' .J ori' t
addition, the city, by vote <o£ tidn:}about7.which. there is ysome
two-thirds majority, may incur an" concern, that is looking ahead to validly issued - revenue, bonds is rthat the issuing unit be obligated /■
additional indebtedness of 10% of
its /practical /.application, ielates
•
the assessed valuation for the pur¬
do the issuance of.
refunding bonds
of acquiring rights of way, by political subdivisions. It proconstructing, extending and vim- Aides that bonds may be refunded
proving streets and avenues, and at maturity, or call date at a rate
sanitary or storm sewer systems; of .interest no. higher :than; that
The/governing body of the city carried -by the- original issue. The
tnay' provide that any portion of concern is, where a municipality
all of the cost of any such im¬
may in the future be forced to re-7
provement be levied and assessed /fund/nmaturing fj,bonds 1 during a
by the governing body on prop¬ period when the' prevailing inter7
erty benefited by such improve^ •;est rate is higher than, contracted
pose
ment./ !■; "7,"•/77/7^7*^7,7/
7 Any. city, by; vote
majority, may incur
in
ness
an
of
-
indebted¬
an
not to exceed
amount
the original; issuance of
for Upon,
7 7
political subdivisions of
also - with respect to
Court
decisions
may
features.
also
sopie of
fective.
One
be
necessary
before
the provisions may be ef¬
V7:7■ '77777;"7*';;,7-';7
feature contained in the
expands
the
debt limit of cities.-Any city, by
vote of-two-thirds; majority, may
incur an indebtedness up to 10%
new7 Constitution
" '7;i;7 '' '•;.7
■.:; /;, /'
ation.
districts
school
politi¬
the
sions, the period within which the
unit must have been out of de¬
state
fault has been reduced by the new
separate and distinct from the
Counties
days. This default requirement is
subdivisions
cal
is
other
and
within
limitations of the cities.
become indebted up to 10%
their assessed
valuation. .-All
from
legislation
the
of
state bonds.
political subdivisions such
districts, road districts,
etc., are
limited in
other
school
townships,
their indebtedness to
assessed
.
to
valuation.
5%
of their
:
-
■
from the
valuation of any political
assessed
subdivi-^
its debt limitation
is concerned. This intangible per¬
sion insofar
as
sonal valuation is
nojt to be sub-;
an
to exceed 8%
such
the
will
be
■
120
to
to
applying
;;7~.777;7<7^ .7:7.""
for
The population requirement
v
counties in states other than New
Jersey remains at 20,000, and that
-
townships,
boroughs, villages and school, dis¬
tricts
the
remains at
5,000.' However,
/principal; change
limitation:
been
is that the
indebtedness
on
\ has
entirely eliminated, leaving
of the income from
It
is
population
divided
the
among
levy;
eligibility. As before, general ob¬
than school districts, are
not cov¬
having
The
power
new
to tax the property.
except
as
described
A
Constitution also pro¬
new
7
in
the
vides for eligibility of general
paragraphhas
v 7
added to the law, to cover revenue
bonds.
enths majority vote, for the pur¬
its
of purchasing, constructing,
extending
or
improving
very
While very detailed as
to
provision
is
broad in its
scope,
and
covers
bonds secured by the revenues
revenue
obligation and revenue
eligible, if they are not in
default,
except
counties under
20,000, cities, etc. under 5,000 and;
special districts, other than school;
districts.
7.';
7 7; v7/; •:
bonds
.
.
New
York
financing
are
Law
which
in
Sept. 1, 1945, replaces all existing
of Spe¬
laws in the General Acts
Charters
for
sale
of
by cities, counties,
towns,
fire
bonds
villages,
other
and
the
school
State of New York.
to
the
Act
districts,
in
districts
bill
"This
this state." In
one
volume now is
found all laws of the State of New
York
I
of the State.
The
State
■'
t
rected by the law to prescribe
of
.
bond
VAN ALSTYNE,
NOEL 8b CO.
■
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7
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f
-
sales,
inconsistent
not
with the provisions pf
the law.
York Stock .Exchange
Comptroller
his order
on
Sept.
1,
The
Senate of
the: Ohio
Legis-[
lature adopted, on March 29,
a
resolution
gress
memorializing
last,
Con-;
to enact the Boren Bill, H.
of R. 693. The Legislature also cre-
77% -7^:77/77
♦
New York Curb Exchange
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Ohio
Wall Street, New York (5)
YORK
>
1945
describing these;
requirements in detail.
):
52
In /
compliance with this requirement
3lIf tubers
New
the/
preparation, publica¬
circularizing. of notices7
tion, and
of
-
di¬
Comptroller : is
State and Municipal Bonds
;
/
authorizing the issue/ and '
by such subdivisions *
sale of bonds
Railroad, Public Utility, Industrial,
]■'
,
is"
designed to be the exclusive law
on the contracting of indebtedness
by the municipalities, school dis-.
tricts and district corporations of
Underwriters and Distributors
j
the
The appendix
recites:
formulating plans.
;
and
issue
cial
Be ar7 Stearns & Co
of
•
effective
became
Members New York Stock Exchange
ance
..
In New York the Local""Finance
new
offered our assist¬
7
'
.
'v;';
contem
;
general
Dealers in touch with corpo¬
rations
the 7
result7 of
the
legislation is to make practically
all state
and. municipal
been
vides that cities mayissue revenue
definitions,1, this
;ob-7
ligation bonds which are addition/ %
ally secured by pledged revenues'./:
next
; -77 •'•7 >7 '
paragraph. ••1
mention actual :■-
performance/- vBesides 7
covering bOnds secured solely ;hy/(,
revenue^ the paragraph also pro- ;;
law,"
bonds, authorized by a four-sev¬
pose
no re qui re
record;, of
issued
lapping political subdivisions
suffi-f
;j. amount
There is
the
ered by any provision of the
over¬
maintenance J.
service, and that a
of //revenues; 7be /
pledged for the payment of prin//
cipal and interest On. the bonds. /
cient
re¬
ligations of special districts, other
anticipated
proceeds from this
and debt
sufficient/for/
.
expenses,;
methods
and
default
over-all levy of not1 quirements the sole conditions for
property.
that
only
the
ject to the regular ad valorem tax
rate but to
years
for7; cities, 7 towns,
j.
Intangible personal property jis
be excluded
5
condition
may
as
and their subdivi¬
of other states
The debt limitation of counties,
operating
new
default. In the case of obligations
State;
rates
maintain
to-
J-VIri ' general,
777'7:"
New 'Jersey
There has recently been enact¬
,v
-
other
light systems, express or '
other highways, bridges; tunnels,
ferries
or
other
public utility
In
.
bonds by
systems,
electric
purposes
an additional 10%
of the taxable ed Chapter 194 of the Public Laws
requirements of Section 3 of the
of 1945 of the State of New Jer¬
Act.
V. '
' '7/7 77 77: tangible assessed valuation for the
j ; 7 7/ ■
: Missouri
• V, •
../• purpose of paying all or any part sey, which amends the law rela¬
of the cost of purchasing or con¬ tive to investments by fiduciaries.
A new Constitution for Missouri
structing waterworks,., electric or
As before, the law/authorizes
was adopted during the year. Leg¬
other light plants to be owned ex¬
investment in obligations of the
islation in the form of enabling
clusively by the city, provided United States, the State of New
acts is necessary to make opera¬
that the total general obligation
Jersey and municipal subdivisions
tive the new constitutional provi¬
indebtedness of the city shall
not|rf the state of New Jersey not in
sions relative to the issuance of exceed
20% of the assessed valu¬
the
water works systems, gas
7 ji
Volume 162
ated
to
Portfolio Management in
study of taxation for
its Subdivisions to
a
and
state
be
completed by Dec. 31, 1946.
Further, it extended the present
refunding laws for two years, and
changed the right to refund from
100% of maturities to "not more
than 75% of bonds which have
matured
which
or
are
about
the
maj/result.
upon
this
Legislature
Even
lating to the purchase of munici¬
pal bonds by State banks, par¬
ticularly
revenue
bonds.
Such
purchases must comply with reg¬
ulations promulgated by the Su¬
perintendent of Banks and the
Banking Advisory Board of the
State. The regulations were for¬
mulated by those officials after
conferring with state bodies, bank
officers
and
various
municipal
dealers. These provisions may be
found in Regulation IV-A—Rev¬
enue Bonds, issued by the Divi¬
result
files
is
of
required
to keep in its
information and
supporting
determine that the obligations
purchased meet the requirements
specified.
r
to
,
,.
Bank investments in direct ob¬
ligation
outside
of
assessed
valuation.
factor
been such
ter .than
also
statutes authoriz¬
also
anchor
equipment bonds under provisions
|
/
are
of
some
V
The
in
securities
within
these
limits
the manager becomes too sold
given time will of. course de¬
pend upon the specific outlook at
Another
of
important general ap¬
the basic principles
of
portfolio
is
management
that
maintaining flexibility of point
of
view.
ager must
The
investment
tioning frame of mind
as
validity of his views is
a
to the
healthy
state of mind.
He should always
be in process of reviewing and re¬
appraising possibilities, yet main¬
taining the degree of firmness
that time.
of
to insure continuity Of
necessary
man¬
approach and policy.
be firm in his opinion,
yet flexible enough to recognize,
(Continued
On the
on page
in
""sensitive"
or
invested
in
securities
Group Securities, Inc.]
A Mutual Investment
Company with separate classes of Shares
stocks,
ties
but
•
should
have
that
in
be
much
erate 7
securi¬
I
mod¬
more
fluctuations in price
equity type securities. :
A balanced portfolio maintained
and
fact
funds in
over
mind
ap¬
Railroad
Railroad Stock Shares
'*
Equipment Shares
Low Priced. Shares ;'
4:
a
a
and
Agricultural
♦
Automobile
'
Aviation
Building
•
Chemical
*
encourages a
Electrical Equipment
de¬
more
Food
»
Industrial Machinery
*
liberate management of
folio by
Successful
;
suc¬
the port¬
the investment manager.
ment
mands
the
in
a
a
Investing Company
portfolio
manage¬
changing world de¬
7: .7
Merchandising
*
Tobacco
considerable variation in
proportion of equity type
''777«
Mining
•
»
Petroleum
Utilities
se¬
curities with* changes in the broad
long range Outlook. Such changes
should be within certain pre-de-
Genera! Bond Shares
pro¬
Institutional Bond Shares
limits.
These limits depend upon
requirements of the individual
owning the funds and upon -the
general point of view, temper¬
ament and approach of the invest¬
ment manager.
As a general rule
the
47
1
BR OKERS
Fully Administered Shares
♦
"GUIDE
TO
<•
Publishers of 7
J-*;:. 7.7
7* ,.-,7
,7
RAILROAD f REORGANIZATION
'
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•"
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5/:7.7v7:77777'; Underwriters and Investment Managers
;
63 WALL STREET
NEW YORK 5, N. Y.
CHICAGO
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Trading
■
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PFLUGFELDER, BAMPTON & RUST
Members New
FIRST COLONY CORPORATION
York Stock Exchange
Underwriters and Distributors of Investment Securities
61 BROADWAY
Telephone—DIgby 4-4933
i
NEW YORK 6,
Bell System
.
9
■
N. Y.
Teletype—NY 1-310
Members
70 Pine Street
Hanover 2-7793
New
York
'
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Railroad Bond Shares
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termined maximum and minimum
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more
Railroad Securities and Reorganization Securities
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Steel Shares
than
.
BOSTON
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in cash,
governments, municipals, or high¬
est
grade bonds and preferred
DISTRIBUTORS GROUP
>;• V I £
vl7;Vc;;.''7
j
folio need not be entirely
period of years reduces
risks, gives flexibility to meet
changing conditions, and provides
insurance against emergencies. It
leaves the individual owning the
STOCK
one
2740)
?
^
B0ND and
on
policy or if he vacillates too
much in his point of view. A ques¬
a
at
any
plication
time, changing conditions. Suc¬
is not likely to be achieved if
cess
pro¬
portion maintained in equity type
relatively stable in price. The re¬
latively stable part of the port¬
j
value.
unfavorable.
;
recapitulate, successful port¬
folio management is based on cer¬
it seems desirable
tain important investment princi¬
that a max¬
ples:
7 ;v7;.77;77v7lc ;;./V'7.:7- imum position should not exceed
17 To recognize, measure, and two-thirds to three-quarters of the
provide for inevitable errors and total fund when the long range
are now
;
remainder
To
permitted to issue transportation
of House Bill No. 503..
is
invested
be
management
windward
to
appears
favorable, and
one-quarter to one-third when it
<-'7 7
7
equity type of securities, with the
demands the-proper
precedents
tions* School districts, authorized
transportation,
importance; but
investment
however good
appears
-
must
events
the judgment of the in¬
Changing Woild
a
outlook
The most
important practical
application of these principles is
to maintain a balanced portfolio
of investments.
Only a certain
proportion of a portfolio should
by recognizing that judg¬
ment is fallible and that historic
dormitory bonds of such institu¬
to furnish
future
of
measure
Investment Principles
vided
outstanding
of
successful
a
Practical Applications of Basic
amount
of attention to a comparison of
present factors with past histori¬
cal facts.
Too great a reliance
on judgment may invite
disaster.
Senate Bill No. 162 for
refunding
to
prior
cessful
An
made by
most
that
vestment manager,
that may be.
Successful
constantly occurring,
as
have
ing the issuance of dormitory and
bonds
for self-liquidating
projects of various of the state
the
of
proach to the problem.
Obvious¬
ly, the conclusions based on judg¬
other
was
to fulfill the respon¬
the counsellor to the
the
ment
Provision
an
will. become an inherent
in policy and that results
period of years will be bet¬
a
over
as
judgment of the future
precedents is in
often
P The Oklahoma Legislature dur¬
ing the early part of the year en¬
institutions.
safety
concerned, it would not prove that
the ,■ portfolio
management
had
of
historical
Oklahoma
numerous
use
are
all
on
population, de¬
fault, etc., remain unchanged.
acted
,
approach based
judgment ,of all factors in¬
chances
end
the
be
balance between conclusions based
This
minimum
>■
to
satisfaction
precedents and comparison? of the
present with the past. A judicious
requirement has now been
eliminated.
Other
requirements
to
were
the
This does not exclude historical
debt
as
this
to
that-are
bonds of municipalities
of Ohio were formerly
limited to those of municipalities
with a net debt of not exceeding
10%
managing
given time.
To balance judgment of fu¬
.
data which will enable examiners
.
in
volved at any
that
clear
<
Banks of the State of Ohio. Each
bank
is
portfolio
management means accomplishing
satisfactory results through a pol¬
icy which greatly reduces the
risks over a period of years of
taking
capital
losses,
and
yet
makes it possible to make capital
gains
when
circumstances
are
propitious.
No mechanical meth¬
od or analysis can be applied to
accomplish such results.
More or
less mechanical approaches may
work out for a while, but in a
changing world over a^ong period
of time they are too static to sur¬
vive.
In portfolio management,
in the final analysis, it is neces¬
sary to apply judgment to* the
available facts and to recognize
as far as possible the broad eco¬
nomic, social and political changes
The specifications are too lengthy
to list here, but copy of the reg¬
ulation may be had from the of¬
Superintendent
it
To
2.
1
;
basis
individual.
sion of Banks of the State of Ohio.
the
if
sibilities
.
7
investments.
amended and clarified the law re¬
of
inherent
3.
portfolio management, to be suc¬
cessful, does not- depend upon ture events with reliance to some
making a lot of money over either jdegree upon historical precedents.
If these .principles are followed,
a
short or long period of time.
•
\-"h Additionally,
risks
the
(Continued from page 2698) 7
such great risks that sooner or
later serious shrinkage of capital
On
to
mature."./
fice
2739
State Taxation Committee
a
make
the
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
Security Dealers Association
New York 5
Teletype NY 1-2425
Thursday, December 6, 1945
& FINANCIAL CHRONICLE
THE COMMERCIAL
2740
Portfolio Management in a Changing
(Continued from page 2739)
hand, he should not attempt to
look ahead too far into the future
Trading Markets in
of
because
;
impossibility
the
of
judging conditions that may pre¬
vail several years hence; while on
Eastern, Mid - Western
the
other
essential to
is
it
hand
judge conditions far enough ahead
to insure that
and
a
broad
perspective
The
investment
maintained.
is
should have an opinion
regarding prospects beyond say
manager
Pacific Coast
year; but that opinion
be regarded with too
one
not
SECURITIES
confidence.
-
should
much
its
sake
own
2-4785
HAnover
:v;
York Security Dealers
New
;
Beil
-
NY
Tele.
-V
Direct Wires To
f,
Ass'n
.y
f
York 5, N. Y.
Exchange Place, New
1-24X0-2494
:
'
:
^X""ji
CHICAGO and LOS ANGELES
:
not
does
Diversification
of indiivdual
selection
The
fined
Reorganization
Securities
specializing
in
Chips"
or
se¬
names
familiar
become
in
with
greater than average promise for
the
future
have
an -important
sized
small
or
concerns, y
management.
portfolio
in
place
securities
such
of
Inclusion
en¬
prospects of capital
period of years and
some
extent the
that will occur in the
the
unlisted bonds and stocks and
gains
"WHEN-ISSUED" securities.
counteracts
over
mistakes
choice
a
to
investments
and timing of
made in
equities that do not pos¬
growth characteristics. Fur¬
thermore, it is a part of portfolio
sess
JOSEPHTHAL & CO.
■
1•' '•"v
New
York Stock Exchange
Chicago Board
120
of
■
•
'
•
<. •
.
■■ -
tive
.
Trade
Broadway, New York
REctor 2-5000
management to invest in specula¬
tive equities whenever prospec¬
>y
New York Curb Exchange
Commodity Exchange, lne.
MEMBERS
•
.
5, N. Y.
Bell System Teletype NY
1
gains
capital
appear
great
enough to offset very substantially
the larger element of risk.
It is
essential to bear in' mind this
319
element of risk, particu¬
larly during periods \yhen condi¬
tions
are
favorable
and
manylarger
j
' 19 Congress St., Boston 9, Mass.
Wire
-
Bell System Teletype BS
Tel. Lafayette 4620
Direct
*
Telephone
System
to
curities,
of
view
both
from
the
accumulation
from
and
the
point
point
of
view
of
will
he
that
and
early,
much
patience
before
curate and
360
..
,
speculative stocks become "re¬
spectable" in the eyes of many
New York to Boston and Private
Correspondents in Principal Cities
investors.
,
i
portfolio
In
tience
is
of
•'
Maintenance
3.
;•
*
of
a
relatively high.
The major
dominating stock prices at
are likely to continue to
do so for some period ahead, say
for at least another year.
I also
factors
present
,
flexible
last
in
Investments
6.
growing
and
young
as
concerns
well
;
as
well known concerns and in spec¬
ranted.
'■"••Wy
'
Sufficient
7.
when
war¬
yV
;
securities
ulative
expected
.
patience
developments
Making
am
not
to allow
to- come
to afford
J.'i
policy
major
shifts
organization,
with
dealing
His
manager.
three
the
/
in
equity
this
t
■><
i
l
*
H Y.
of
the
gradually in view of the large
rise in stock prices which
at any time be followed by a
reaction of some-magnitude. Such
a
reaction should be utilized tto'
most
complete the buying program.
Bearing this in mind I have set
up
the
following portfolio for
$100,000, which illustrates the ap¬
plication of the investment prin¬
ciples discussed.
This portfolio
could just'as well be $500,000 or
$1,000,000.
The
yyy^yy y yy yy yyx
included
securities
present time, and neither do the
proportions shown necessarily re-v
fleet the policy that I would rec¬
ommend.
Also the number > of
greater than; I
include.
I
stocks is
common
would normally
There
to
be
are
made
deter¬
portfolio.
likely
future
include
several observations
with
The
only
respect
stable
■
120
to this
"reserves"
Government bonds,
l
y
in this
not necessarily those
which I, as a portfolio manager,
recommend to individuals at the
are
BROADWAYS5.N/ Y.
&»lI<-T«Utyp« N.Y. 1-1227
SECURITIES
-
type se¬
proportion
can
OVER-THE-COUNTER
J
1
because
years
iL: .!
NEW YORK 5;
a
substantial propor¬
'
■
■!
40 EXCHANGE PUCE
therefore,
..
y
at
up
in
relevant
considers
Ttl. WOfth 2-4230 >
!•
a
but-
;
portfolio
the tools used by the
v
our
in
may
are
recent
interested in block offerings of
through
they
y/y^/y^'-^'y
time.
funds
of
curities,
alone.
sake
mining
J unlisted securities for distribution..
rates
term
than
judgment,
my
and,
high level of stock prices. The
proportion of equity type secur¬
ities : under
today's
conditions
should be no more than 50%. The
common
stocks should be built
he
,
long
lower
maintain
to
invest¬
problem in
determining policy is twofold. He
has to obtain and put together in
the most helpful manner the facts
r.y
be
low
Judging
conditions
far
enough ahead to permit the ap¬
plication
of • a
consistent
and
broad policy; v
;
5. Diversification of investments
but not diversification for its own
are
are
that
even
In
4.
ment
We
fact,
interest
that
portfolio manager should continue
all the
detailed facts and methods which
.
continue
should be smaller than during the
.
Dealers* Assn.
opinion
will
tion
" V
7. to. fruition or.; at least
management pa¬ a test for one's judgment.
great
importance.
8.
CO
the
rates
the present
Situation
&
hold
point of view to recognize chang¬
ing conditions.
yV
I
■
The real problem is
factors and to
are
Specific Application of Investment
Principles to the Present
«a
the
develop¬
which is not the purpose
this article, it is my opinion
that; the fundamental
trend of
stock prices is still up even though
on a
historical basis stock prices
ing them by degrees.
Members N. Y. Security
determine
broad
of
early but not too early, and mak¬
LUCKHURST
will
the
time,
Changes in the proportion of
limits.
of
their combined effect on
security prices.
1
;
'
Without going into the details
as
to the outlook at the present
equity type securities within pre¬
determined maximum and mini¬
mum
a
which
judge
portfolio to include only a cer¬
tain proportion in equity type se¬
curities.
X
2.
wide opportunity
determine these
to
balanced
a
ac¬
among experts.
generally domi¬
few overshadowing
ments ahead.
-AX
:
of
Maintenance
by
factors
character
recapitulate, certain general
applications of the fundamental
principles of portfolio manage¬
ment should include:
course
is
outlook
nated
Yet
it is important
;yXv
of
This '
-
disagreement
The
though
required
be
may
effect
dependable conclusions
and gives a very
for
even
events bear him out.
net
makesit difficult to arrive at
to
The ideal is to make
changes
action.
bined
to dom¬
has to
from their com¬
likely to accrue
his
fundamental
policy
the tops or the bottoms in
such
con¬
a
importance
the
determine
to
He
relative
their
weigh
appear
situation.
the
inate
change
the market.
which
trends
or
of
able
be
never
at
clusion, based upon judgment, as
to the net impact in the Secur¬
ities market of the various, factors
income
of
arrive
to
has
then
He
pa¬
capital gains. Fhtience is also re¬
quired
in
making
important
changes in policy.
The success¬
ful
portfolio--manager
assumes
everyday life. Equities of medium
hances
particular
"Blue
to
have
that
Rights and Scrip
in
much
too
tience, Time is an important ele¬
ment in holding equity type se¬
To
curities does not have to be con¬
Brokers and dealers in general
of
World
and in comparing
present conditions with the past.
developments
been
of lack of patience
agement.
securities.
Securities
because
have
that a fundamental
shift in policy does not take place
should
not
be
a- substitute, for
so early -that important opportun¬
judgment.
Too great diversifica¬
ities are lost.
Therefore, portfolio
tion means improper dispersion
management should be based on
of effort and perhaps opportun¬
a
process of a gradual shift in
ities
overlooked or
disregarded.
"risk" securities with changes in
Between 20 and 30 equity type se¬
the outlook and in the level of
curities
seem
sufficient in the
security prices.
This is merely
average
portfolio.
This should
another application of the prin¬
satisfy the need for diversification'
ciple
of
insurance
and the weigh¬
and afford ample opportunity for
ing of risks in investment man¬
favorable selections of individual
J. F. RE1LLY & CO.
Members
detriment of
the
to
merit.
have
40
a
considerations
other
because
than
v
of
mistakes
more
made
near
.
portfolio is
important, but diversification for
Diversification
Many
"
Volume
which
Number 4444
162
the
are
available
SUGGESTED
attractive
most
securities
2741
the
for
INVESTMENT PORTFOLIO
pur¬
•
relatively /stable
The
pose.
curities
include
bond
with
price
risk
gain
No.
se¬
j
Stable
$25,000 U.
and
lend
preferred
tentials.
The
with
next
which
be
po¬
;
of securities,
risk but still
group
carry
should
gain
'<',7,
capital
./
7
.
No. Shares
10
more
stable
more
than
common
eral
securities
in
which
Car. Clinchfield & Ohio stock.,.-.
Commercial Credit conv. 3.60 pfd.
N. Y. Power &
Yield
25
Aviation Corp. conv. 2.25
growth
possibilities,
stocks.
40
■
—
/:
'
124
--vr
Price
Value
85
$2,125
American Home Products..'
100
Many
100
V
to
overall results and
The
60
77 35
the
20
high prices of securities in today's
25
market.
of the
is
It
low.
from
reflects
On the other hand many
companies selected
their dividends
crease
may
in¬
;r;''
•g. The yields by
groups follow:
.t
Stable
%
during the
next' two years,
■.
-
securities...
with
risk
It is
a
conditions
current
upon
KennecOtt
Montgomery Ward
....
50 '/.Union
stocks
that
selected
are
no more, or
;
Industrial
■
37 WALL
7
;
,
STREET
V'.7''
7
Bell
INCORPORATED
„
IIAnover
2-9300
j
J • G - White 8 Company
Telephone
.
ESTABLISHED
System
Teletype
YORK 5
NEW
1890
NY 1-1815
-
, ■7
|
In
association
with
Kirchofer & Arnold,
$1,566
RALEIGH, N.
Inc.
CHARLOTTE,
'
C.
N.
C.
2,100
2,000
Income
:
$25
60
60
7
<
:
;
7
70
..
^
—
^
_6o
.
72
52
'
7'
7
-
62
7
;77'77:7
7
7
^VESTMENT SECURITIES
>:' •' 60
125
W:
22
-77 25
2,200
2,100 7:;"7: 72
7
"
68
2,040
60
1,680
42
1,800
7 : ' 80
:i: 2,120
•777-775
2,100
7-'
62
1,850
38
1,200 V-
NEW YORK 5
64 WALL STREET
50
'
:'i-:
r
56
:7
36:
/:'7>
53
■
Established 1927
91
60
•
ۥ' 1,775
68
r-
R. H. Johnson & Co
5£
42
'
' l
74
24 7
7;;
Boston
•
'
^7.7*":7
Washington
Albany
r
Baltimore
Pittsburgh
Syracuse
Troy
Wilkes Barre
Springfield, Mass.
.
Philadelphia
Buffalo
Dallas
Woonsocket, R. I.
-
r
at least only
G ra rt d
Tot a1_______________
the
principles
when
to
much the overall
It
inviting risks that
/ '•
*
,
yield
:gv';v7'.from
appear
this
of.
age
In
common
Except in individual
and
of
not
such
a
square
with
formulated.
faced with
a
difficult task.
Our
are
specialists in the retail- investment field.
salesmen- in
10 states enable
us
retail
distribute, among real investors, large blocks
of
/attractively
situated
bonds
and
stocks.
to
Com¬
stocks generally are high in
price and yet the possibility clear7
(Continued on page 2742)7 7 :':
mon
quality of the -in¬
may
easily
elim¬
folio manager should take advan-
portfolio
yielding
basic
is
return
importance
reduces* the
$2,990
We
inate opportunities that the port¬
7/.-:
be increased by purposely se¬
high
abnormal
an
vestments
exces¬
'■f-
-
$100,081
_
3.0%
very
bonds
__
Yield
a
$1,424
2.9%
"sweeten"
and
$49,495
Yield
does
stocks.
-
/
if
with
procedure
lecting
!,.
$578
71
14
Bag & Paper.
paramount
The
-
2,800
2,400,
-
.
48
....
...
Underwood Corporation..!....
-
stocks
7
140
^Standard Oil Indiana....________
25
preferred
can
1
....
little more, than 3%. Also, that it
is no longer possible to include
sive.
•
National Gypsum
Pantapec Oil
Philip Morris ___________;__^7
Phillips Petroleum _______;
Pepsi-Cola
-.1—.
St. Joseph Lead
promising outlook, the overall
yield is
__.l
~
25
50
3.0%
—
•
interesting commentary
an
common
International Harvester
Johns Manville.
40
.
:«
_
; Green (H. L.)
20
30
2.9%
"A":
_________
20
30
3.9%
-
126
7
.
Great Northern preferred
50
Common stocks
Overall yield
Ex-Cell-O
100
price
some
100
71,800
128
2,560 <
48
r
1,920
183
' 7; 1,830 7
33:"'7;;:7 •2,145
61' -77"
2,135
61
/i: 1,220
75 : ":'-7
1,875
96
1,920 7
•:
Engineers Public Service
150
2.5%
Relatively stable securitiesj 3.3%
Securities
120
<
1,800
30
...
50
7
18
i.i
Carrier Corporation
65
"•••
this
income
current
_
7. Chrysler'
40
Columbia Broadcasting
: io 7
DuPont
j
portfolio
managers
undoubtedly make some¬
portfolio
Bucyrus Erie
20
•
individual
.•
Utility
Stocks
Common
...
No. Shares
20
what different selections.
7V
3.1%
stocks
would
112
$50,586
and
same
$120
$14,730
__
105 I;
give the
V
____
American Airlines.
be selected
Public
•
Bonds and Stocks
3.9%
American Can..
can
:
2,500
7
25
other securities
$2,525,;
73
20
with
$363
2,800
2,235
2,480
2,190
about one-quarter to the category
of
long term ,: growth situations,
quarter are
speculative appeal.
Railroad
78
'
belongs to the category
good quality to "Blue Chips,"
another
$10,856
i
—.
Yield
one-half
"75
55%.
^Total
%
DEALERS IN
90
2,140
2,135
7-
'•;.;'7 7
Yield
50
56
pfd
stocks
give a better than average
price performance as a group over
a
period of time. Approximately
1,330
2,831
■
V
.
125
and
These
should
of
101
Commonwealth & Southern $6 pfd.
™
o
~
30
$70
3.3%
Blue Ridge $3 preferred
20
;
$2,420
-
50
,77
DISTRIBUTORS
;
give
a
reasonable
balance between high grade well
known companies,: medium sized
companies with better than aver¬
to
•
WHOLESALE
:
-
American Power & Light $6 pfd.._
Armour & Co. $6 prior preferred.
speculative
V,
C
______
•
20
age
•
-
11314
107 V
106%
/
stock list has been
selected
$625
2.5%
133
Light 3.90 pfd
Tide Water Assoc. Oil 3.75 pfd
Securities With Some Price Risk:
:
$25,000
.
20
No. Shares
■
common
7
121
,
sev¬
special
^developments could result in capi¬
tal gain.
v;.- -v"'',
The
,V
price
stock's, include
in
—100
25
20
,
Income
UNDERWRITERS
S^2%%, 1967"1972
1960
price stability; and
three good to high grade preferred
stocks, including one convertible
Value
Securities:
Relatively Stable Securities:
$2,000 Penn Central Airlines conv. 3%%,
guaranteed
railroad
stock
where
potential
developments
one
should
Price
-
.
downside
well-defined
potential capital
considerable magnitude;
of
Approx.
.
Units
convertible
one
the
cases
'
"
v
conclusion, it is evident that
portfolio
manager
today
is
•i'V.
*
'
.1-
,
•
\7
,r
•
7C
7'iW
'i'-'-V'. 'V'.'
'
L/-
'I
'
New York 4, N.
V 30 Broad Street ^-7 ;":7
•
7' * ■> .'
-
*
.
•
d '-i;
,
7.7-;.
■\ -.j-'.;-;.77:'7,
Established T922
♦
'./
>77'7 7.'7-
YV
'Y. i
,V
.
v
»
*
^
-*
"17'
:.l
-j,
•
i
,),•
J
•
7
•
<i.\'J
-
ly
_
v
.> i' iii
(
-7.'*•
!.
'■
v.:,
■t
,
?
ii
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<1,7.. i7 .'-"7
v;,7.v
7
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.77;
~
if-.
Portfolio Management
PRESIDENTS
PAST
IBA
1922-23
1924-25
1925-26
U'
In
a
r
In Attendance at IBA
Changing World
(Continued from
amental trend has exhausted itself
Meeting
2735)
page
Nashville Securities Co.
Courts & Co.
Carter, DeWitt
(Continued from page 2741)
exists that before the fund¬
ly
Thursday, December 6, 19451
FINANCIAL CHRONICLE
THE COMMERCIAL &
2742
Carter, Hugh P., Jr.
Carter, John A., Jr.
Nashville
Atlanta
•Vance, Sanders & Co.
Blair & Co.
•
Los Angeles
v
l-
Cartwright, Todd
Chicago
-v;
unsound
A. C. Allyn St Co.
-vCasey, J. Douglas
Chicago" >
prices for common stocks may
Casserly, Thomas D., Jr Doyle, O'Connor & Co.
Chicago
prevail.
Securities
other
than
Channer, George S., Jr. .Channer Securities Company Chicago
common stocks are becoming less
Paine,; Webber, Jackson
Cleveland v
*Chapla, John
jand less attractive from, the .point
& Curtis ;
Of view of income "and; capital
McDonald-Moore & Co, < X
•Detroit
Chapel, Harold R.
gain. The average individual, .over
American
Trust Company
.• San Francisco-Chapman^ Dwight W.
a period of time, will have to be
Farwell, Chapman St Co. Chapman, Ralph
V Chicago
•
content with a smaller return on
>
Reinholdt & Gardner
St. Louis
Christophel, Arthur A.
his
capital.
Unless his capital
New York.
v
Christopher, William V R. W. Pressprich St Co.
|ias already increased or will in¬
New York
Clapp, John J.
;> R. W. Pressprich & Co.
crease before -the long term :upE. W. Clark St Co.
Clark, Sydney P. ;
Philadelphia
ward / movement
terminates,, it
Atlanta
^Clarke, Hagood
:"
Johnson, Lane, Space & Co.
Jwill be very difficult for him to Clarke, James H.
American National Bank
Chicago
obtain satisfactory income .from
Blyth & Co.:
Cleave, Walter
:
Chicago
/
the " stable
securities, he should
Geyer & Co,
Cloy es,.Fred O.
."
Chicago
own when the fundamental trend
New York
Kean, Taylor & Co.
J,
Cobden, Edward A. M.
(changes.
1 ,
William Blair & Co.
Cochrane, Loren A,
Chicago
Durmg the next few years it Cohu,Henry W.
Cohu & Torrey
New York
will perhaps be more important
Julien
Collins
&
Co.
Collins, Julien H. j. Chicago
than usual consistently to follow
McDougal and Condon
Condon, Joseph P.
Chicago
tried
principles
of
investment *Conlon, Raymond V.
B. J. Van Ingen & Co.
Chicago
management. The responsibilities Connely, Emmett F.
First of Michigan Corporation Detroit
pf the portfolio manager may be¬ Cook, Henry M.
St. Louis
Newhard, Cook & Co.
Lazard Freres & Co.
New York
come
greater than usual, and Cooper, Walter W.
H.
M.
Byllesby & Co.
Chicago
(competent management of port¬ Corns; O. G.
Paine,. Webber, Jackson
Corrington. John W.
Chicago
folios may be at a premium.
& Curtis : >
leven
higher
and
>
very
,
v
.
Thomas
Ray Morris
N.
A.
John
Dysart
Prescott
'
;
,
George D. B. Bonbright & Co.
*** Members
100
New
York Stock Exchange
t
Coughlin, Walter J.
BUILDING
POWERS
ROCHESTER 4, N.
Telephone Main 4830
.
Hourly earnings of wage
v
ers
BINGH AMTON
NEW
BUFFALO
YORK
SYRACUSE
CITY
*Couffer, James C.
Courts, R. W.
Sept. Steel Payrolls
At Higher Hourly Rate
Y.
Bell Teletype RO 180
!
/
the
in
tember
earn¬
steel
industry in Sep¬
averaged 123.4 cents per
hour,
compared with 121.0 cents
per hour in September, 1944, ac¬
cording to the American Iron and
Steel, Institute, which further an¬
t
.
t
nounced:
-
.
this4 year the
average earnings of employees re¬
ceiving hourly, piecework or ton¬
"Every
cents
ure
of
s
Special Interest in All Western New York Issues
★
%
*
have been above 123
hour.
In August the fig¬
an
was
125.3.1
V
£-f
,
„.
"Meanwhile, the average num¬
ber of employees in the industry
in
September was ctose to the
level of early 1940.
The employ¬
ment average of 521,200 in Sep¬
tember
was
below
the
August
average
of
542,700
employees,
partly because of the temporary
period of adjustment which fol¬
lowed V-J Day.
In September,
INVESTMENT SECURITIES
''
month
nage wages
; UNDERWRITERS and DISTRIBUTORS
:■
1944, the employment average was
*
565,200.
"Monthly payrolls declined dur¬
ing September to a total of $119,107,500, compared with $128,117,-J
000 in August and $142,209^500 irt
Schoellkopf, Hutton & Pomeroy, Inc.
70 Niagara Street, Buffalo 2
September, 1944. yy
"Wage earners worked an aver-r
63 Wall Street, New York 5
age
Washington 8060
of
40.9
hours
per
week in
BOwling Green 9-1869
September against 40.4 hours per
week in August
Courtney, William
Cox, Claire
*Cox, M. J. M. ;
Coyler, Charles M.
*Craft, Don M.
Craft, Robert H.
*Crago, John H.
!>Craigie, Walter W.
♦Cronin-, C. R.
Cronin, Dominic C.
and 47.2 hours in
September, 1944."
f
\
Coughlin & Co.
B. J. Van Ingen St Co.
Denver
Courts & Co.
Atlanta
Allen a
United Press
Wilmington
Chicago
Curtiss, House & Co.
Cleveland
Central National Bank
Cleveland
New York
Ewing St Co.
;
*
St. Louis
Richmond
Allison-Williams Co.
A. C.
m
Toledo Co
New York
Collin, Norton & Co.
Guaranty Trust Company
Smith, Moore St Co.
•
F.W.
Craigie & Co.
.1
,
.
I
<
.
.
>
t
| Minneapolis
Chicago
Allyn & Co.
;
Cronin, JohnF.
*Crosby, Roy B.
Cross, Louis J.
Cincinnati Enquirer
Cincinnati
First Boston Corporation
Boston
Paul H. Davis St Co.
Chicago
Cross, Milton C.
Harriman Ripley
New York
Crouse, Charles B.
Crouse, Bennett, Smith & Co.
Detroit
Crowell, Warren H.
Crowell, Weedon St Co.
Cruttenden St Co. yV
Los Angeles
Cruttenden, Walter W.
Cullen, John J.
E. W.
New York
A. E.Ames & Co.
'
-
Davis, Ralph. W,
4
Chicago '
Cleveland
Corporation
San Francisco
•;
New York
V"
Chicqgo
Chicago
Paul H. Davis & Co.
tppvp
C, J, Devine & Co.
Chicago
Amott, Baker St Co.
New York
Decker, O. Paul
American National Bank
!
Chicago
New York
Chapelle, Richard Shields & €ov
First Boston Corporation
Delafield, Richard M.
de La
Comptroller of Currency
V Newhard, Cook & Co.
Dempsey St Co.
Dempsey & Co.
Mackubin, Legg St Co.
Dempsey, Dumont G.
Dempsey, Jack R.
Dempsey. Joseph E.
Demuth, Howard E.
*
Denotes
Mr. and
Chicago
St, Paul
First National Bank
Delano. Hon. Preston
>
Chicago
.,
Day, James W."
deBronkart, Eugene H.
Delander, N. Paul
;■ v.:
Chicago
Paul H. Davis & Co.
%J.
*
Washington
St. Louis
'prp-P
Chicago
Chicago
-Baltimore
Mrs.
HAMLIN & LUNT
MEMBERS
V
NEW
YORK
STOCK EXCHANGE
ASSOCIATE MEMBERS NEW YORK CURB EXCHANGE
DOOLITTLE, SCHOELLKOPF & CO.
:Established 1919
■TV
MEMBERS
'
»
BROKERS and DEALERS in
v.
•
yNEW
LIBERTY
LISTED and UNLISTED
,NEW YORK STOCK
EXCHANGE
YORK CURB EXCHANGE
BANK
(ASSOC.)
BUILDING
.
'
'•
BUFFALO 2
•
SECURITIES
Primary markets in all
securities
Retail Distribution
of
Buffalo
and Western New York
'
MARINE TRUST
CO.
TRADING DEPARTMENT
BUILDING, BUFFALO 3
john a. bradt
...
Telephone: Washington 4035
Branches: Rochester, N. Y.
Private wire to
Bell
—
Teletype BU 145
Norwich, N. Y.
Kidder, Peabody & Co., New York
Manager
.
Direct Private Wires to
tucker, anthony &
|
Bell Teletype BU 48
Telephone Washington 4970
Complete Trading Facilities
^
y
Tucson
Reynolds & Go.
;
y
Nashville
Pp
Minneapolis
Davis, Skaggs & Co.
:
,
City National Bank.
Henry Dahlberg St Co.
Welsh-Davis & Co.
y,
.
J. M. Dain & Co.
First Cleveland
^
*Davis; Clarence F.
Davis, DeWitt
)
Davis, George W.
Davis; Joshua A.
'
x
1 p. New York
\
Investment Bankers Assn.
Davis, Arthur G.
4
Chicago
Pittsburgh
Equitable Securities Corp;
Daniels, G eorge I.
Dahlberg, Henry E.
Pavis, Paul H.
Chicago
Pressprich & Co.
Bear, Stearns & Co.
S. K. Cunningham St Co.
Cummings, Patrick J.
Cunningham, Sam'l K.
Curry, Andrew G.
Currey, Brownlee O.
Dain, James M.
& Co.
co.—wertheim & co., n. y.
Volume :162
Everett, F. Dewey
*
-
<
r
;
Continental Illinois:Bank; Chicago '*• :•
Denison, John W. r:'-;:
V F. S. Moseley & Co.
.
:,V Chicago
i!tD6Staebler, E. L.; ;
Continental
Illinois Bank
Chicago •;
DeSwartej Bruce H.
Detmer. Howard F.
,: Howard F. Detmer & Co.
Chicago
Howard F. Detmer & Co. '
Detmer j John F. • : ' ■
Chicago
Ewing, Allep C.
yEwing, R. W.
„
•
-
Hornblower & Weeks
New York
Allen C.
Wilmington
Ewing & Co.
A\ E: Masten & Co.
•
,
2743
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4444
■
'
'
Dewar, Hal II.r
f
Blyth & Co.;*
■ '•
"
: J New York
Dewar; Rbbertson & Pancoast Sail Antonio
>
Devlin; Paul G.
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•
<
■
New York
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R. S. Dickson & Co. '
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f- 1
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Dorbritz, Ernest O.
s
t Downey, Norman
i' Doyle, Leo
J.;???}?
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1;;
Drummond, Kenneth &
DuB'ois, Allen C. " "
rDuBois, Wilbur C.
DuBosque, Clayton
Ducournau, Jackson P
Duhme, Herman
Dunbar, John B.
Duncan, S. V. - Dunn,S. A.
y
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•
Duval, Gordon B.
:
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BostonN
Dietrich, Henry J.r ; 1 r * L. F. Rothschild & Co,V:£*
Dillman, David r
1 \\r- .-Journal of Commerce
T"
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Chicago V
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r
New York '
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Cleveland
: i
'^m. J. Mericka & Co? *%->
Charlottesville
Peoples National Bank ' v , :
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Moore; Leonard & Lynch '
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Union Securities Corporation. New York
Chicago
Doyle, O'Connor & Co. '
69 W. Washington
•;Chicago
f
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;77:";
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V.
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New York'
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St. Louis
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C. J. Devine & Co.
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Otis & Co.
Hornblower & Weeks
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Chicago
Chicago
Kansas City
de Los Monteros today
Chicago V
fourth annual instalment due from
City National Bank
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H.M.
^yllesby&Co.:
bis
settlement of claihis by citizens of
New York
the United States,
New York
Singer, Deane & Scribner
Havden, Miller & Co.
First Securities Co. ■.»
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Kidder, Peabody & Co.
William Blair & Co.
Boston
page
Government
claims
The
of
on
were
a
lodged
seizure of American
private prop¬
Chicago
erty,
other
several
Chicago
oil
than
years
payment, the balance
at
2748)
$24,000,000.
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payment
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presented
New York
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«2744'
& FINANCIAL CHRONICLE
THE COMMERCIAL
threat to the nation's
ous
A Gold Coin Standard lor U.S.?
(Continued from
page
coinage; and issuance of gold coins
of the value of $10, $20, and $50,
and
for the
issuance of gold
cer-r
tificates.;
Bad
Features
of Bill
j
Two features of these bills
can
be condemned, outright: (1)/They
would
not
provide the United
States
with
a
what
subject
of the United JStates
instead,, they would agaip
2699)
^old-coin standard;
the
to
currency
all
uncertainties,
the
thor
and silver
the
the : provisions
constitute
of its
au¬
been, would pro¬
gold
producers.
The provision
for increasing the
price of/ an ounce of gold
(and silver) -is also a noteworthy
taught by the world's
commentary on the theories of
those who have been insisting that
experiences with bimetallism; Ob¬
viously
the
bill,
regardless of
gold has lost.. or will lose, its
value, and is^ relic of barbarism.
the
a
lessons
Wall
"The
17
Nov.
Street
reports
Journal''
of
Administrative
opposition to these bills in the fol¬
lowing words, among others: i
"The
LYONS & SHAFTO
-
"
Incorporated
Bill
Taylor-Murray
to
Admin¬
NEW
31 Milk Street
i,
/\ ■ "Administration monetary ex*
perts are strongly opposed to
be
suggestions that currency
made convertible into gold.
"The "experts point out 'that
if gold were placed in circula¬
YORK
70 Pine Street
tion
and
and
demand
holders
of
currency
deposits decided
it, there would not
to
demand
be
enough to go around.
the
legislation might be
Thus
a
seri-
that
assuming that the devaluation and
bimetallic
provisions' of the bills
be eliminated, raise impor¬
tant questions.
They are impor¬
may
tant, regardless "of whether these
ever reach the stage of seri¬
bills
"consideration," since
they go
to the heart of the question of the
ous
soundness of
our monetary stand¬
Furthermore, the reported
opposition is in harmony with the
of
position
that
X''"-'V 7
*
*.
gold and
reported grounds of opposition to
a
return to a gold-coin standard,
nature
the dollar is getting no
our
the provisions
to
opposition
encouraging.",But the
is of course
ity to alter the gold content of
7'
and
bimetallism,
ard..-
istration support."
BOSTON
President to devalue
for
put gold in circulation and restore the Government's author¬
"
State and Municipal Bonds
If any of the Administration's
opposition to these bills relates to
a
revival of the power of the
silver coins
dollar
bimetallism
for
denial of the value of
haVe
may
intent
mone¬
tary system in times of panic."
vide for further subsidies for
involved
possibilities of unexpected
and
repeated
changes ; in
the
standard monetary unit, and (2)
in
other
the
Administrative
the
avgold-coin
to
has
steadily
repeatedly since the
sion
of
.
op¬
standard
revealed
been
and
1933.
gold payments in March,
contentions of the
istration
that
Admin¬
because
there might
be hoarding
of
gold-and because "there is not
enough gold to go around" if de¬
for
mands
should
it
gold reserves;
are
exceed
our
not valid. Their
unsoundness should be understood
since
con¬
siderations in the issue of
coin standard versus
system.
paper money
Since, under
tional gold
a
res/of Capital/Stock of
our
a gold"managed"
■
present interna¬
bullion standard,
peo¬
ple of other countries can get
gold, the question arises
likewise
•>'
demand
to-
as
makes
accept
except
to
into this
•
gold.
this
to
answer
their
convert
claims
is
that
•!
refuse
or
Government in ef¬
the foreigner "come
but to our own cit¬
izens it says that if they try to get
it and hold it, except for use in
the arts, industry, and professions
quently,
our
fect
says
and
get it,"
to
provided in law, they shall for¬
as
the gold and be subject to;a
penalty equal to twice the value
feit
of the
gold.
Does
hoarding
of
domestic
fractional
gold re¬
admission
an
other monetary reserves
fractional—are' either less
our
—also
than
desirable
gold or
obtainable?
not
both
The
.
really
are
answer
on
alone
counts.
made
were
lawful
for
Federal
our
Reserve
banks;
these cannot be paid out to
people of this country. Prior
to
that date,.,/silver and certain
varieties of our paper money also
served as lawful reserve against
and
the
deposits in the Reserve banks and
could, as part of this reserve, be
paid out.
only
Today, they
be paid
cash but
can
non-reserve
as
of the lawful reserve.
they were used as re¬
serves, there was little fear of a
hoarding demand for them since
they were very different from,
and inferior to, gold.
;///";
not as part
But when
Administration's
Objections to the
Acid
Test
Does not the Administrative op¬
position to the gold-coin standard
demonstrate
a
fear
of
subjecting
'
Investors ■;§§
una,
Trust
7
Write
7;
be obtained
for prospectus relating
to
the shares
of either of these investment funds, each
of which is managed independently of the
from investment dealers
or
.
'
other
VANCE,
THE
PARKER
by
different
f
...
BOSTON, MASSACHUSETTS
6i
specialise in all
j
Insurance and Bank Stocks
o/.//;;/
Investment Trust Issues
7
/
TEXTILE
Broadway
CHICAGO
izo
Industrial Issues
Stocks and Bonds
S EC U RITIE S
a
New
England Market
Frederick C. Adams & Co.
\
7
Specialists in New England Unlisted Securities
24
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FEDERAL
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ESTABLISHED IN 1922
Teletype BOston 22
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v
•
LOS ANGELES
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South La Salle Street
We
Public Utility
Securities with
YORK
.
COMPANY
&
BOSTON
NEW
7
STREET
DEVONSHIRE
^
ONE COURT STREET
management group.
SANDERS
11
CORPORATION
a
re¬
against notes and deposits
serves
^Massachusetts
may
is
By the Jaw
of ,June 12, 1945, gold certificates
INVESTORS
Prospectus of Incorporated Investors
-
of
fear
a
constitute
serves
that
(
not
our
to why
The fairly obvious
question
him—he
to
gold
domestic currency
discount.
Conse¬
a'
at,
loans
the
our
people should not be able
our own
r
a
or
can
out
constitute. basic
they
ices
as
cur¬
should not be made directly
convertible into gold coin, chiefly
rency
control
cannot
it does our cit¬
izens.
It can compel our citizens
to take something less desirable
than gold, but if it deals with the
foreigner—buys his goods or serv¬
foreigner
in
domestic
our
the
yes
•' y
■
Government
our
suspen¬
Fallacy of Administration's Policy
The
Thursday, December 6/1945
,
Zio
West Seventh Street
[Volume 162
;
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
:
—
,
monetary
Administration's
the
policies, to the acid tests
such a standard could, and
and fiscal
which
Many in
perhaps would, apply?
the
•
and
Administration
Con-
in
have been asserting that in-
gress
convertible, paper currencies are
Superior to gold. If their conten¬
tion be sound, then these advo¬
cates of such paper money should
;
'
welcome the test which
the peo¬
probably would,
/make under a gold-coin standard.
/If the paper money of this type
is as good as, or better than gold,
; the people will not prefer gold to
v the paper. Here is the
opportunity
; for
the advocates of a
paper
: money
not
directly convertible
:
into
gold to demonstrate/their
: good faith in respect to the arguple
ments
•
and
could,
jthey have
offering
been
during the last dozen years.
/clear that they are afraid to
r ject
their theories to this
What they want is freedom
;
fiscal
/
currencies
The /'Scarcity of Gold" Argument
Administration's
argument
/.that the gold-coin standard is not
;
sound, because there is not enough
/gold to go around is naive in so
/far/as
economics
is
concerned.
/ There is not enough of anything
•to. go around
if it ha§ value. Any¬
thing /that
has value is scarce.
enough only of those
things that pave no value! Ger¬
many
put this simple principle
There
/
/ to
is
thorough
a
when
test
she
printed enough inconvertible pa¬
per marks!
When the people had
/enough, the marks had no value!
To
therefore,
that
we
say,
/ should not use gold because there
Js not a sufficient supply to go
/around and that all who have a
"right" to claim it cannot exercise
that right at all times, is to dis;
regard the meaning and signifi¬
cance
of value.
All people who
have a "right" to cross the George
Washington Bridge could not use
be — fire escapes to meet
panic conditions.
Our monetary
fire escapes have not been good,
nor
have
they
been
adequate.
There
it at the
time,
same
The
same
is
true of
and
railroads, ships, airplanes,
highways.
All who have a
/ "right" to
use
the elevators in
still
is
for
room
improve¬
ment, and it is to this point that
more
careful attention should be
" ' //-,
directed.
./"•/::
remarkable
A
V/"
Desirable?
Is an Inferior Standard
thing about the
position in its
Administration's
opposition to a gold-coin standard
is that it really amounts to con¬
tending that an inferior currency
is
domestically/
the
which
at
discount
best
exchange
various
Foreign
reveal
which
of
the
than
desirable
more
•
the people, of this nation
gold-coin standard in 1933,
it also deprived them of the auto¬
matic
control
which
a
people
prived
IBA PAST PRESIDENTS
ox me
snould
any;
be
able
unwise
exercise
to
improper
or
over
of
use
and credit, whether
issued by banks or the Govern¬
ment and, consequently, over the
use of the public purse.
With the
suspension of gold payments, the
automatic control by the people
of this country over the public
paper
money
purse was
trols
if
at
as
Such
away.
con¬
all, only through much less
reliable
nels. In-
trols,
swept
remain tan be exercised,
and
effective
less
recent years
obviously,
have
.
negligible importance./
Government
can
(Continued
on
non-
chan¬
these
con¬
been
.
When
of
a
deprive a peopage 2746)
gold should be the
property of the people or of the
Administration which happens to
be in temporary political control.
Further questions which logically
flow from this one are these: Why
should
our
not
Nolan
be per¬
in the
object of his choice?
If one pre-'
fers to sell his products or serv¬
ices for gold instead of an incon¬
vertible
paper
money
or
highpriced,
low-interest-bearing / se¬
every
Investment Bankers
730 Fifteenth Street;
curities/ 6r an over-valued silver/
why should he • not be permitted
to do so?
On what logical or
legitimate ground can a Govern?
justly
"You
cannot
the
to
say
invest
in
.
citizens:
gold, we
convertible paper money, an over¬
valued
silver, and our Govern¬
securities?"
ment
It
is
the
important
understand
to
Auchincloss, Parker & Red?ate
the
people of the United States have
disadvantages
to
which
Members New
Yor\ Stock Exchange
'
been
subjected because they have
not had a gold-coin standard in
recent years.
1 . '
Weakness
When
a
of
Present
Currency
Administration
this
INCORPORATED
.
Washington 5, D. C.
N. W.
shall take that; you must take in¬
de¬
t
,
'
1
.
Alfred Putnam
Jr.
Albert G. Redpath
v
John E. Parker /
/ Frederick H, Clarkson
Harold C. Patterson /
*Hugh D. Auchincloss
★Chauncey G. Parker,
fr\
C. T. WILLIAMS
y',
Co.
person
mitted to place his savings
ment
&
MEMBERS NEW YORK STOCK EXCHANGE
j
,
:
*Eckley B.'Coxe III
Paul D. Howe
//
Charles K. Dickson
.
*Limited Partner
★Armed Services
1
Henry R. Hayes
Callaway
"p-owbridge
,
whether
Richard P. Dunn
///
i92r-2a
1929-30
gold currencies pass in terms of
gold, would seem to provide ample
proof of the unsoundness of the
Administrative position. /;/ r
Then there is the question as to
,
•
are
may
rates
and
at
precisely what any
good monetary standard requires
no
matter how nearly perfect it
these
and
subtest.
from
policies.,;/////;/;:///;
The
fore
rates,
apply
would
standard
inferior
their
to
;
them
use
in case of a panic.
There¬
fire escapes are provided,
once
It is
the tests and restrictions which a
;
I gold-coin
could, not
building
/New York
/
Washington
J:
Baltimore
Philadelphia
Wilkes-Barre
.
INVESTMENT BANKERS
■;/////v///:;..//
,
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///
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BALTIMORE 3
Union National Bank Bldg.
Clarksburg, W. Va.
;
Wctt Virginia Representative,
COMPANY
MACKUBIN, LEGG &
...
1
ESTABLISHED
.
!«!)!>
NEW YORK, N. Y.
BALTIMORE, MD.
New York Telephone:
Baltimore Telephone:
CAnal 6-7162
Calvert 6200
"V
Members
*
New
York
Stpck Exchange
Teletype BA 395
(
DIRECT
WIRES
TO
j
.
■
New York Curb
CRUTTENDEN*& CO., CHICAGO
CONRAD, BRUCE & CO., SAN
.
Exchange (Assoc.)
_
/
FRANCISCO—LOS ANGELES
THE COMMERCIAL
'&
Thursday,: December: 6, 1945
FINANCIAL CHRONICLE
reducing the risk of
,the consequence that such
non-gold currency cannot suf¬
a discount.
Thus the existence
with
A Gold Coin Standard tor U. S.?
against good liquid assets of the banks should issue notes or cre¬
device which ate deposits of questionable; value,
modern nations have embraced to the people would demand pay¬
an, unprecedented degree.
And it ment in gold, and, by this action,
they would reveal their fear of
We should not forget the very is: a device Which1 the general pub¬
lic apparently understands very the banks' notes or deposits. Thi£
simple fact that, if a Government
would force the banks and per¬
is to be left free to issue money imperfectly. Both the device; and
haps the Government: to correct
against its own debt instead of the general lack of appreciation
(Continued from page 2745)
pie of practically all control over
the public purse their position has
become dangerous indeed.
'
a
In their prices.;
••
a
sharp* drop
,,!:V 1
-
fer
Have No Control Over Public
gold-coin standard tends to
of a
of
guarantee at all,times the quality
issuer is a dangerous
of all circulating Government cur¬
-■
••
-}'Furse
t
■
Today the people of this'
try'have lost this control
rency.
The fact that our-people
today cannot obtain gold Coin do¬
•'
coun¬
over
the public purse, and. those who
purchase Government i securities
deprives them of the
power to test' the quality of our
Government-issued'
paper
and
silver currency; as: it would be
mestically
find
themselves1 earning: a small
return;
and
assuming
interest
great risks.w ;
' -h
y v/;'*, '
the situation.
Such demand for
Since; people cannot; get gold,
tested in free world markets, and
gold is a reflection«of popular to force the Government to avoid many; ofthem - invest: inc What is
judgment regarding the state of an excessive or extreme issuance
widely regarded as the next best
this debt or to the supply of being.
the banks' money and credit; it
of such currency.
This desirable thing-r-Government securities. .But
money that can be issued against States^ are definitely involved in
the red flag of warning to the
and needed
it,
pressure- cannot be many private savers do-not invest
Germany, during and follow¬ this danger;
banks and to the Government;
exercised effectively today; - Our in these securities for- the
ing World War I, presented the
reaso^
and it is the people's automatic
Gold as a Check to Inflation f.
Federal Administration, has been that they cannot afford to accept
world with a shocking illustration
check on bad banking practices^.
the;-low
andis
interest,
running
this
country's
considering, the
of this great truth. Issuing money
If, when a gold-coin standard is When
they are deprived of the ;
monetary car without. brakes, y.; risks involved; they "prefer to let
against the issuer's debt instead at the disposal of the people, right to demand gold,'this auto¬
their funds lie' idle. A large pro¬
matic check is gone; all they can
Foreign Loans and Our Gold ^ portion of these securities is taken
do is to accept what the banks
A
mounting dang e r; today, by institutional investors which
give them. This is the position in which needs much more attention must earn such interest returns as
Specializing in
which our people find themselves
than it seems to be receiving, is they pan; and since many of them
today.i; ■ rtpp -tit?
PP '■ PP the. tendency of our Government, are restricted by law or
policy to
If, when a gold-coin standard
through leans to foreign coun¬ such investments or cannot find
is at the disposal of the people,
tries,
to
create
large
foreign other < adequate, and safe outlets
the ;A Government should issue a
claims against our gold.
If these for their funds, there is a great
currency of doubtful value, the should be converted into demands demand for these securities.
But
All Issues
people would-demand gold rather for gold in any great
'i
degree, a if we could compile the losses suf¬
than this currency and: thus re¬
large proportion of our gold re¬ fered by savers and these institu¬
against
the
nation's
there is almost
no
gold
of its nature are exceedingly dan¬
assets,
.
factors in a nation's wellThe people of the United
gerous
limit either to
.
,
.
•
Philadelphia
Transportation Co.
veal the extent to which the Gov¬
Philadelphia
ernment's
currency
lacks ; the
gold.
This manifested
preference for gold would compel
value
Real Estate Issues
of
the Government to correct the sit¬
ESTABLISHED 1904
uation.
Samuel K. Phillips
"^Members Philadelphia Stock Exchange
Packard Bldg.
New York
A
Co.
&
Telephone
-
REctor 2-0037
—
Bell Teletype
-
standard
its currency on a parity
through
PH 375
the
direct
currency
\
■'
into
'..
DeHaven
Toiwnsend, crouter & bodine
&
'
..."
'
Members
■
New York and Philadelphia Stock Exchanges and
.'4
New York Curb
Exchange
1
PACKARD BUILDING,
with gold,
convertibility
gold
v
V
requires
that the Government maintain all
"
1
Philadelphia 2, Pa.
of these
but
inconvertible
est-rate
and
silver
'
J
at
of
par,
we
seem
in
this
to be
mendous.
I ■
gold standard, as the peo¬
monetary ple's(automatic - brake on their
The
moving recklessly
direction-—our
a
banks
collapse and we would be
in a position quite like that of
various European and other coun¬
tries who cannot support their
currencies by adequate gold re¬
serves.
V*: V-pP'-p;
Pi"''
If, under a gold-coin standard,
the Government should attempt
to
issue
securities
at
prices
deemed too high, or if they bore a
rate of interest deemed too low,
by investors, many people would
invest in gold rather than run the
risks involved in investing in such
securities—they would prefer the
safety of gold and the loss of in¬
limits
fiscal
and
affairs
would
in
be
state of
on
"
securities
with the
risks of
sharp drop in price or the
—
New
York
Private Telephone
rector 2-3300
New York Oppice
■
;■
;
30 broad Street
hanover 2-3580
\
to
lower
induce
savers
invest
be considered
disaster.
a
making
their
also
STREET
of
with
a
have
of
trust
even
How much less
automatic
appliances in the
whose
in
case
affairs
an
„
ena¬
bling them to purchase securities
at more reasonable prices, thus
should
take this to heart, and
far
the
as
control
policy
shares
■
New York—Los Angeles—San Diego—Pittsburgh
—
Hagerstown
•
of
the
dan-
UNLISTED
y.
'
;
•
•
•
•
'• V-. '-;-
•••
Railroad, Public Utility and Industrial
We
are
interested
in
block
offerings
of listed and
securities either for our own account or
V;' ■"
MEMBERS
MEMBERS
NEW
NEW
YORK
i YORK
STOCK
EXCHANGE
CURB
EXCHANGE
STOCK
EXCHANGE
MEMBERS
PHILADELPHIA
MEMBERS
LOS
STOCK' EXCHANGE
ANGELES
through
our
unlisted
;
!
for distribution
organization.
,*
.
1
ESTABLISHED 1914
Boenning & Co.
Private Wire System New
York,
Bell
Teletype—PH 265
Philadelphia,. Los Angeles and San Diego
N.Y.
MEMBERS PHILADELPHIA STOCK EXCHANGE ".
MEMBERS NEW YORK CURB EXCHANGE
Telephone—WH 3-7253
Philadelphia Telephone—Ritt.
.
;
(ASSOCIATE)
1606 Walnut Street
PHILADELPHIA 3,
4488
PENnypacker 8200
Race 3266
Bell System
PH
PA.
Teletype
30
as
trade-cycle
of
some
PHILADELPHIA 2, PA.
•
of
are
atmosphere not
entirely free from personal eco¬
nomic interests, and whose lead¬
ers are
responsible only 'before
God and History,' writing their
memoirs
if
anything has gone
wrong! - It is desirable that all
planners, all popular writers on
the 'end of capitalism,' and all
despisers of 'orthodox' economics
investors
better return and of
not
without
do
we
conducted
additional
the
providing
do
responsibility
can
borrowing
which, in turn,
"Government
spending. In this manner the peo¬
ple would have control over the
public purse because of the ex¬
istence of 1he gold-coin standard.
This enforced higher interest rate
WALNUT
We
sonal safety depends on his sense
of
Government
virtues
indispensable
spite of the fact that there are no
personal economic interests of his
stake, and that his own per¬
difficult
would
an
at
se¬
virtue
as
the locomotive engineer to forego
automatic
safety appliances
in
Governments
the
Wilhelm
—
of our economic machinery
if we want to be safe a gainst real
safety
have
brake
part
would put a brake on
1529
a
savings in Government securities.
more
BUCKLEY BROTHERS
as
This
would
money.
it should be.
.
prices in order
to
the people's
as
Ropke in hCrises and. Cycles
(William HocTge and Co., Ltd.,
London, 1936). He says (p. 175):
"The automatic safety brake pro¬
vided by the gold standard has to
in a currency having
purchasing
power.
Such
preference for gold would compel
the Government to pay a higher
at
spend
highly reputable European econ¬
omist has to say about the gold
repay¬
rate of interest and to sell its
can
standard
little
curities
places
on the speed and reckless¬
with which the Government
It ought to be instructive to us
in this country to read what a
ment at par
Philadelphia
Government,
,and
ness
And that is
terest to the small interest return
PHILADELPHIA Z
locust 677a
monetary and low-interpolicies of the Federal
Government, we would find that
the social costs have heen tre-#
money
paper
to support our huge
of
paper
money
and
Should tihs happen—and
volume
credit..
gold-coin
tional investors, as a consequence
could be swept out' of this
country, leaving little or nothing
serves
New York Telephone
COrtlandt 7-1202
is
a
economie planning, here
of
fiers
monetary
of
advocates
management."
■■ty.ty;
,;
v
our
It
Government.
1933
in
its restraints.
tion freed; itself from
The
removed
was
the Administra¬
thus
and
in the
contrpls were placed
.driver
And
accelerator.;
the
and
the people
have been, and
being, taken for; a wild ride.
are
j'«
A most
important point to bear
in mind here regarding the pres¬
ent
currency
-situation
of the
United States is. that even though
our
domestic
may
currency
not
be depreciated, fur¬
ther in terms of gold because of
our system of indirect conversion
of
our
domestic
currency
into
depreciate,
or
gold, the disadvantages suffered
by the people of this country, as
a
consequence of being deprived
of
a
gold-coin standard,
to be
are
found in other and vitally impor¬
tant
directions, the chief of wnich
Therefore
have been mentioned.
to
do, that, be¬
cause our inconvertible paper and
■over-valued silver currency has
point out,
not
this
(Continued from, page 2702)
But this automatic brake is off
.
The Investment Banker's Dilemma
the more en¬
also for
'lesson
thusiastic
as some
depreciated in terms of gold
Jan. 31, 1934, the present
world
the
Are
one?
war
pros¬
cussion
of
gold-coin standard
versus our present system or some
similar system of "managed" in¬
convertible paper currency misses
these
■
of the
decade
socialization
countries
vestor
of the 20s.
of
schemes
warn
foreign
national
and
new
the
guarantees?
be
ments
any
more
invol¬
the
with
Government
essentials.
the
cated
A
,
currencies
popularly advo¬
type
now
but one
are
of dic¬
feature
tatorship and Socialism in which
political
valuations
are
substi¬
tuted
for the objective non-po¬
litical
valuations
in
herent
for
the
the
1he
true
free
which
are
in¬
gold standard, and
reflected by
values
forces
of supply and demand in the mar¬
ket
place.
To have
objective
values, a nation must have an ob¬
jective monetary standard, such
as
gold, which is free from the
notions of politicians as to what
its value ought to be.
Just as we
make the bushel an objective unit
of
measurement, so; should the
people have an equally objective
monetary standard of value.
We
do not let the politician decrease
the
of the
operation
of
size
the
bushel
when the
apple crop fails!
When a nongold "managed" currency is sub¬
stituted for a gold-coin standard
and the management appropriate
it, political values replace true
economic,
objective values,; and
when this is done the people suf¬
to
fer serious
The
consequences.
agitation for
"managed"
a
inconvertible paper or
untary tax payers' money?
commodity
dollar currency is but one mani¬
of a persistent, and' Tn
and
eration
of
a
poverty ;
and
had
vestors
experiences
and
pay
sound
some
of
In¬
thrilling
soon
tunate
this
them
period
were
prosperity, /.'tyv::/ /.'v'ty
■' 'speculation'; it is devoured, and
is
'panic'."
The United
England and other countries in there
Europe have had their experience States had its experience with
with cheap money and its con¬
cheap money and inflation after
..
by
any
for¬
means.
finance
will never be
scheme
of
known.
But from the evidence
other countries from
(Continued on page 2748)
Responsibility
States and all
the
the world are
over
While
de¬
decade, cheap
multiplied <b,y
and
the
un¬
4n the paper
All of these
inflation.
of
product
In addition to being
billions of savings have been
stroyed in the past
money
has been
deficit
financing.,
paralleled increase
credits
pay.
debts.
are
bonds is
the
to
and
taxpayers.
members of the
YORK, PHILADELPHIA and CURB EXCHANGES,
Every govern¬
socialized obligation
a
workers
| NEW
and doing
v
of
Is
a
general security business,
we
~
specialize
which
experience
strated cannot work.
has
demon¬
Though the
in
pursue
should know
full well that
is after all such
a
thing
as
there
to
They
valuable
more
a
apparent
today
r:
CITY OF PHILADELPHIA BONDS
one.
not. admit that they
something out of
a
fixed objective
will
make
cannot
that
nothing;
unit like
gold is as desirable as an
unchanging bushels that a stable
price level, if it could be attained,
does not necessarily mean
eco¬
nomic stability; that no monetary
mechanism
alone
can
produce
level for
long or in the economic system as
a whole; that the gold-coin stand¬
ard
has
r ot
been /the primary
cause of the great fluctuations in
the
in
stability
Yarnall Si Co.
price
Members of the New York Stock Exchange
Philadelphia Stock Exchange
and
that
Bell
present world-wide
the
New York Curb Exchange (Assoc.)
ST., PHILADELPHIA 2, PA.
152IB WALNUT
Erices
usiness
and
the wide
swings in
activity
and prosperity;
System Teletype
-
PH 22
suspension of specie payments is
nothing more than a fairly-com¬
mon,
but - always
temporary,
episode in the history of metallic
currencies.
1000 %
•
"managed"
paper currency and the critics of
a
gold-coin
standard are def¬
initely wrong, and, in the light of
history,
it
would
seem
to be
merely a question of time until
Congress;|will be brought to a
The
agitators for
of this
a
It is to
fact.
realization
of
history
by
a
V
Stroud & Company
INCORPORATED
will,
wait until this lesson
not have to
some¬
thing like a fanatical determina¬
tion to try economic expedients
MUNICIPAL AUTHORITY BONDS
the im¬
possible, they will not recognize
that it applies to attempts to make
a less valuable currency 'equal in
value
OPERATING PUBLIC UTILITY COMMON STOCK ISSUES
these-.. plans
people' who
again driven home
is
catastrophe in
monetary
our
and fiscal affairs^'
'-Kf
Underwriters and Distributors
,
mmZ
Railroad, Public Utility and
; Security Issues
BMrWEUINGTON^
FUND^
Maintaining Active Trading
Municipal
Positions in
Guaranteed & Leased Line Stocks
u/QTmit/
r
«
'
r'^
k
*
*
'
.*
'
'
1928
INCORPORATED
Public Utility Stocks
Underlying Railroad Bonds
Public Utility Bonds
Pennsylvania and General Market Municipal Bonds
Equipment Trust Obligations
\
NEW YORK 5, N. Y.
PHILADELPHIA 9, PA.
W. L. Morgan
123
& Co.
S.
BROAD
120
STREET
Pennypacker 7330
General Distributors
Bell
System
Vr
ESTATE
,v.-'1 ■ / ■"
TRUST
'
BUILDING
'■ ..'••■•'■"■ Y
/
:
■,
"Semi-Annual
■
PHILADELPHIA
1,
-
.
'
7
and "The
Valuation
Bond
Wires—REctor 2-6528 & 2-6529
of Railroad &
of the
2-6528
Teletypes—PH 296 & PH 297
N. Y.-Phila. Private
"
BROADWAY
REctor
Industrial Equipment Certificates*
Week"—a series of articles
on
railroad bonds.
in
such schemes
Low interest rates in the United
be hoped that this realization
REAL
debts
our
money.
very
during
all
not
to
to
return
What the
consequences might have been if
whole gen¬ devour it, and there is 'plpthora';
instead
of it finds some one, and there is we had adopted a John Law's
which
ushered into France
determination
which are
the
to
Cheap Money, Low Interest Rates,
and the Investment Banker's
frenzied, quest for
stability In our economic system,
but it rests upon unsound grounds.
recent years a
is
debt
causes
present purpose,, the
money
from these
people—the
blind capital, as we call it, of the
country—is particularly large and.
craving; it seeks for some one to
not
,
.
festation
There
which
promised France wealth and pros¬
perity
through
monetizing
the
Will pay¬
safe if the
lending is socialized and made by
stronger
1870
Do the
the American in¬
demand
to
schemes "in
generations to overcome the con¬
sequences
and restore financial
stability we fortunately had the
ter
intervals/from
While it took two
the Civil War.
As described by Wal¬
Bagehot almost 100 years ago,
when
the
people are provided
with excesses of cheap money "At
sequences.
a
After all, "managed"
of
It
ex¬
Law's
investment
capital today is less than half that
ment debt whether in currency or
disadvantages and dangers in
Much of the dis¬
new?
many
The average return on
arrangement is quite satisfactory,
is to miss some of the most impor¬
situation.
Europe has had
periences with cheap money..
A
period in the. French history of
cheap money only exceeded by
the present was that of the John
as
of
rates
promises
our
of cheap money
era
is not.
investment obligation
well? Are the inter¬
today sufficient in¬
ducement for the risks involved?
for
pects
being met
est
since
tant
2747f
THE COMMERCIAL ft FINANCIAL CHRONICLE
Number 4444
Volume 162
Si^«a^S«sfc
TAT,
* FINANCIAL CHRONICLE
Thursday^ December
6, 1945
fc—
In Attendance at IBA
The Investment Bankers Dilemma
credit
(Continued from page 2747)
•we
were very fortunate in choos¬
ing the road of sound money,,
A brief survey of the European
inflations after World War I will
*
disclose that in every country in
Which inflation and debasement
paid Off and sound
money
restored?
Will
cheap
money be maintained by further
inflation,
causing
further,
inr
creases
in prices and declining
purchasing power of income and
investment capital?
investors
were
purchasing power in about the
same percentage.
Whereas in the
countries
which
returned
did not debase
their currencies the investors, in
time,: regained their purchasing
S:
v -,; v
■
0' ■ ./>';
;■
era
of low money
inconvertible
ized
and
currencies,
nationalized
investment
bankers
rates,
social¬
credits
have
salesmen.
ments
the
What
for
your
standpoint
are
safe
mere
invest¬
customers
of being
the
a; ■ re¬
sponsibility far' greater than
from
sure
has
the
inflated
money
and
curities
under¬
and
described
as
Blyth & Co.
Stix & Co.
Investment Dealers
Frost, Read & Simons
The Economist
discharge
best by fur¬
return
to
sound
after performing the ma¬
jor operation of * eliminating the
inflated; money
and credit we
have in our system, Of course it
will take a long time to get over
this operation and heal the sores.
money
the"
But
sooner
quicker We will
-
we
begin
the
Investment Banker
banker
and aid in
should
saving '(and invest¬
the door of oppor¬
J Encourage
ment and keep
tunity and free markets open.
Encourage the largest and most
efficient
production, and educate
the investor to the
risks and" op¬
portunity of free enterprise.
Discourage inflation and en¬
courage the increase in real wages
through the increased purchasing
power of money.
..
productive
understand
restoring the free
^
Help build a sound > money and
banking structure. Discourage the
use
of borrowed money for un¬
recover.
Some Obligations of the
ment
;
J<'£;,. 00,•/>
en-
purposes
conservative risks. •
individual
Promote
freedom
for
or
un-
initiative,
of
enterprise,
and
a
careful understanding of risks and
responsibility in using borrowed
money or the taxpayers' money.
James D. Harrison,
President of
the First National Bank of Balti¬
INVESTMENT
Md.,
has
been
elected
a
class A director of the Federal Re¬
more,
Was
SECURITIES
of
Bank
serve
Richmond, Va., it
on
Nov. 16 by
Lassiter, chairman of the
announced
Robert
Board of the Reserve Bank.
The Baltimore "Sun" in
Mr.
Harrison
report¬
Charles
succeeds
E. Rieman, President of the West¬
ern National Bank of Baltimore,
who
had
served
as
a
director of
the Federal Reserve Bank for 27
years,
but
election to
an
additional term.
Mr. Harrison first
timore in
Sheridan^ Bogan Co
1923
as
to Bal¬
came
Vice President
of the Citizens National Bank. He
'V MEMBERS' PHILADELPHIA STOCK EXCHANGE'
was.
elected President of the First
Bank last
National
PHILADELPHIA 3, PA.
to stand for
declined
i
election
as
a
:"
-
Fulton, Wallace H.
Fulton, W, Yost 00'Funk, Creston H.
;
Furlong, Thomas
;
January. His
director Of the Fed¬
St. Louis
Chicago
Chicago
Digest
Charleston >;•
-
Nat'l. Assn. Sec. Dealers
Chicago
Chicago
Chicago
Washington
Maynard H; Murch & Co.
Cleveland
Creston Funk
San Antonio
Chicago Tribune
Gable, Laurence J.
Gaerste, John L.
Gall, Ralf
Gallager, Herbert V. B.
Gallagher, Frank
Gardner, Fred •
'
Garland, Charles S. <
Garrett, P. B. . •
Gates, Thomas S., Jr.
Geis,LeonardB.
George, Edward C.
Gerner, Philip H.
'
Chicago
St. Louis
Taussig; Day & Co.
;
,
Cooley & Co.
:>
Yarnall & Co.
>
^
»
New York,
Reinholdt &Gardner
Alex. Brown & Sons ■
Harriman Ripley & Co. i
Philadelphia
Philadelphia
Chicago
Geo. D. B.
Rochester
v
,
Bonbright & Co.
■
Geyer & Co.
New York
v
Webster & Gibson
Nashville
W. C. Gibson & Co.
Chicago
,
B. J. Van
;
Cruttenden & Co.
Los
New York
,
Reserve
Bank
effective Jan. 1,
will
become
1946.
^
Chicago
Chicago
Minneapolis
Bankers Bond Co.
Louisville
Piper, Jaffray & Hop wood
First California Company
Bonner & Gregory
Bear, Stearns & Co.
Kidder, Peabody & Co.. ;
Kidder, Peabody & Co. j |
Minneapolis
■
-
f
Gundy & Co.
St. Louis
,
-
>
.
;
St. Louis
•
Detroit
■
T
.
New York
„
,
Nashville
..
New York
Philadelphia
Washington
Chicago
Chicago
Omaha
New York
Washington
St. Louis
.
.
.
.
-
Chicago
;
Wertheim & Co.
Hansel, Douglas R.
Hanson. Col. Murray
Investment Bankers ASsru.
J!
Happ, William A; ' : Globe-Deniocrat
Allen & Co;
' *
•
♦Harder, William 0
Smith,Barney & Co.00
Harding, Charles B.
Denotes Mr. and
•
Richmond
Mason-Hagan, Inc.
Hagemann, E. Kenneth G. H. Walker.& Co..
"rtHagemann, H. Fred'k Jr .Boatmen's National Bank
♦Hagerman, Clyde L. ' Wm. C. Honey & Co..
Tripp & Co.
HaightC.M. n
/j,
Nashville Securities Co.
Hale, R. Walter, Jr.
Halt, Edward B.
Harris, Hall & Co.
;
Hall, Herbert S.
Morgan Stanley & Co.
Hallowell, Sulzberger & Co.
Hallowell, Henry R. •
B. J. Van Ingen: & Co.
•
♦Halsted, J.D.
♦Hammond, Wm. H.
Braun, Bosworth & Co.
Hampson, Phillip 0yp: Chicago Tribune
Stern Brothers & Co.
♦Handler,.Manning E.
*
Chicago
Pittsburgh
Tpronto
.
Sh ERRERD
>
V
.
Chicago,
Chicago
^;
,
&
New York
J Chicago
r
,
j
San Francisco
.
k,.-.-
4
UTCHER
^
New York
r(
Straus & Blosser
■
<>
New York
Blodget
Kidder, Peabody & Co.
City National Bank
H.M. Byllesby & Co.
Allison-Williams Co.
i;
J
■
Chicago
Angeles
Pacific Company
Ira Haupt & Co.
Stone & Webster and
,
eral
(;
Los Angeles
St. Paul
"
>
Irving J. Rice & Co.
- Wood,
•
■■
Chicago
Ingen & Co.
California Bank
Grubbs, Scott &£ Co.:
*
;
*
.
First of Michigan Corp.
1 Detroit
Mellon Securities Corporation New York
•■-?:
Hagan, John C., Jr.
-
;
v
Chicago
Davenport
Quail & Co;
:
,
New York
Carl M. Loeb, Rhoades & Co.
Paul H. Davis & Co.
,
Grossman, Arthur
;
Dallas
-
Newburger &.Hano
,
/;
Baltimore
,
Grubbs, M. M.
Gundy; Charles L.
St. Louis
,
Texas Bank & Trust Co.
Drexel & Co.
'
Gerwe, J,T. '
; *
Geyer, George
A
Gibson, Jo Jr. - \
N ■
Gibson, W. C..
Gilbreath, W. Sydnor,Jr
Gillies, George J.
♦Gleason, Thomas F.
♦Glover, W. Wayne
♦Gochenour, Warren, Jr
Godie, AvL. •
Goldschmidt, Paul
Goldsmith, Bertram M.
♦Golliday, Gail
Gordon, Albert H. '
Govan, J. F.
Graf, Robert J V
Graham, J. S.
♦Graham, Thomas
Grandin, Charles L., Jr.
♦Grant, George H.
v
Gregory, William H., Jr.
Grimes, John P.
Grimm, Edgar F.
♦Grimm, Willard T. v
;
.
Chicago
Philadelphia
;
Kidder, Peabody & Co.
":-0.
..
Hartford
:
'
;
Chicago Daily News
..
Gernon, Frank E.
Geruldson. Nils
New York
'"S;;'.::.
Central Republic Co.
William A Fuller & Co.
-
ing this also said:
1616 WALNUT ST.,
Chicago
000':0»0
♦Frost, J. P.
Frye, Charles D.
Frye, Newton P.
Fuller, William A.
management
can
•:
Nashville
/
Frost, C. L."
and
theirisavings. He
to Richmond Reserve
\
Comnierce Union Bank
Journal of Commerce
French, Jo M.
„
:
Des Moines
to take, v' ;•
investment
stood to
J. D. Harrison Elected
/
Detroit
lowa-Des Moines Bank
the
of
ing his customers and aiding the
restoration of sound money and
financing practices, the " invest¬
when
care
selecting and distributing se¬
Washington
Watkihs & Fordcn
Investment Bankers Assn.
Will
interest rates rise
possible
Take the greatest
in
" (Continued from page 2743)
Folger, Nolan, incorporated
,
Folger, John Clifford
Fordon, Ralph
Fowler, Sherman W. 0
Frederick, Paul O.
i
Fredman, Herbert
;;
Frick, Banjamin F., Jr;
Froman, Celeste
the United States and the rest of
How high will
5
^;
protect the investor ac¬
cording to the risks he is willing
of
the world return to sound money?
known to the world.
a
In addition to correctly inform¬
getting their principal back?
terprise system because this sys¬
tem has produced the highest and
most desirable standard of living
responsibility to his customers in
Government
■
'
In this
banker
this responsibility
nishing his customers all the facts
and, then helping the National
to
sound money and
power.
investment
The
of the currency was
practiced the
cheated out of their
are
-
..
New York
::
New York
"
::00'0y:M0
Mrs, '•
Underivriters, Distributors,. Dealers in
CORPORATE
Dealers and Brokers in
MUNICIPAL SECURITIES
AND
Public Utility
Railroad
•
•
Industrial
SECURITIES
New Jersey and
General Market Municipal Bonds
Electronic and
Wew-,York Stoch Excliange
:C
Guaranteed
^
-
-
.
-
-
-
5J
.
Philadelphia Stock Exchange
WALNUT
Philadelphia^ Telephone
Pennvpaeker 2700*
STREET
.
PHILADELPHIA 2, PA.
Teletype:
PH4
Television
-
Securities
Equipment Trust .Obligations
■Aetr vl orh Curb Exchange'(Associate)
Bank and Insurance
/
1500
■
and, Leased Line. Stocks
.
v
:
i
J
.
Stocks.
Charles A. Taggart & Co.
NevrYorlcTeleplione
Investment Securities
"
Barclay 7-4641
■
•
/• U. "
a]: i
.
KIN*.ley 1716
RaceS596
^
,Volume 162
Merrill
Hargrave, Homer P.
.
i
.
.
;
'
t C
'
.
v
•;
Seattle
Boatmen's National Bank
St. Louis
;
fifth
Chicago
Harrison & Austin
First Boston Corporation
San Francisco
-
,
Bacon, Whipple & Co.
A. G. Becker & Co.
/
Chicago
>
.
Chicago
Chase National Bank
New York
Harris Trust & Savings Bank
Chicago ;
New York
x';'
•
(
:
Chicago
Hemphill, Clifford
Hemphill, James C.
Henderson, Kenneth A.
Hemphill, Noyes & Co.
Goldman, Sachs & Co.
New York
v.
Herbert, T. J.
r
-
Bank of Canada
T. C. Henderson & Co.
Des Moines
.'J
Equitable Securities Corp.
Brush, Slocumb & Co.
v
.
,
Nashville
P
Francisco
to
for
misconduct, and in
of strike has not voted for
or
the work stoppage.
Most
important,
the
■'
benefi¬
So
far
known, no travel
provided for work¬
as
-
that
as
well
in
as
Britain.
thing, the block of four
it
the only
of national
importance is the CIO, with a
comparatively weak foothold, and
still weaker finances.
It depends
financially on the American CIO,
which
as
labor
in
may,
group
turn
is
likely
not
provinces
its
is
strongly under the
Church even in its
the
of
trade-unionism.
For
workers
10%
another, in¬
constitute
pied,- reducing
their
weight accordingly. So
fact
only
of the gainfully occu¬
political
does the
industry, and oi? course
are dispersed over wide
that
mining,
pocketbook will be under
own
the
of
strain
home.
rect to
sure
say
bor's
position
the last
that
power-hold
here.
recruited
labor
is
tent
from
class
ored
it
is
and
to
farmer
a
large
and
ex¬
middle
there
;
Most
flation
.
But
it
has
is
it possesses
as
not
monetary
reached the
in this country, the
risen by $11
proportions
racially
billions in six years, against some
more homogeneous
"disciplined" - than
labor, may have some
better
American
as
national debt having
$200 billions here, while the pop¬
ulation
ratio
is
less
than
and with;a somewhat
centage
nent"
the
of
the
hands
debt
than
border.
on
Less
(Continued
1 to 12,
higher per¬
in "perma¬
this side
.
Hodges, Ransom F.
Hoffmann, Arthur M. ■;
Holt, R.L. 1
Honnold, C. Edgar
Hopkinson, Edward, Jr.
Horning, Bert H.
,;
Horton, Leonard M.
Horner, Edwin B. a
Houston, J. C.
Hovorka, Robert J.
Howe, James M.
Howe, L. L. J.
Hughes, Albert R.
Hughes, William S.
Hulme, Milton G.
Hunt, E. Jansen
.
.
Hunt. James R.
*.
Hunter, W. F.
?
■
'•
'Hunter, Norman W.
on page
2750)
,
Mr. and
,
Little Rock
Louisville
J. J. B. Hilliard & Son
Louisville
IraHaupt&Co.
v
& Co.
Braun. Bosworth
First Boston
1T
St. Louis
Chemical Bank
New York
1
-
Scott, Horner & Mason
;
,»
.
.
l
l
: r;
-IX
; Lvnchburg
Chicago
Calvin Bullock
Corporation
Farwell. Chapman & Co.
First Boston
John Nuveen & Co.
Lord, Abbett & Co.
Wagenseller & Durst €
Glover & MacGregor
y"?!:
Lee Hi'figinson Corooration
H. M. Byllesby & CoT. y ,><
war-time
this
were,
10% of
in
fact.
By
exports
ers
solicit offerings from deal¬
and others
seeking retail dis-
tribution of blocks of securities.
contrast,
plus
im¬
our
amounted to less than
is
BATTLES & COMPANY
national income. Even
England, the ratio of interna¬
tional trade to national income is
;
Chicagof ir
Portland
'•
of
total
only
.New- York
•
light
they
New York
White. Weld & Co.
WE
ports of this country, fantastic as
Chicago
•Chicago yyyy;;Chicago
• v
*
Chicago : Ky
Los Angeles
:
Pittsburgh
y
exports
just about five dollars to the
outstand¬
ing Toronto economist (Dr. Jack¬
son) puts it. The high prosperity
of the war years, e. g., the dou¬
bling of the national income to
some $71/2
billions, was based on
a rise of the total of exports and
imports to roughly $5 billions.
Extravagant labor demands are
doomed almost-at once in the cold
; r-
Stifel, Nicolaus & Co.
Bingham, Walter & Hurry
Mrs.
New York
Philadelphia
Drexel & Co.
*
national income," as an
/(
exports.
of
^
Chicago
Oklahoma City
Honnold
of
worth
add
New York *
y
volume
dollars'
1
Chicago
Allyn & Co.
C. Edgar
:
New York
Corporation
the
"Three
New York
Morris Mather & Co.
A. C.
with
/
y
Detroit
Glore, Forgan & Co.
Camn & Co.
>
Hurry, Harry W.
♦Denotes
-
.
so
a
little
over
evident
person
20%.
that
no
The fact
1528 WALNUT
STREET
PHILADELPHIA
90 BROAD
mw
2
STREET
YORK 4
discerning
in Canada can escape its
-
Los Angeles
{(■••■•■••■■•■■■••(■■•■■•.•■■■•■■■••(••■■••I
.
(Continued
on page
MELLON SECURITIES CORPORATION
Union
Trust
PITTSBURGH
Building
19,
PA.
PITTSBURGH
i
19,
PENNSYLVANIA
Distributors of
MUNICIPAL and CORPORATION
!
BONDS
UNDERWRITERS AND
DISTRIBUTORS
MEMBERS-PWILADEL.PHIA\]STOCK EXCHANGE
UNLISTED SECURITIES
GENERAL.
Main Office:
Packard Building,
Philadelphia. 2, Pa.
.
.
1
i
BranchOfflc#:
40
Exchange Place, New York 5, N. Y. I
MARKET
SECURITIES
of
inflationary
,
v
in¬
same
strata, with traditions col¬
by its origin. The fact that*
-
Hill, Crawford & Lanford
Watling. Lerchen & Co.
J. J. B. Hilliard & Son.; • : v
S.
cer¬
such
no
r-...
important,
has
U.
the
in
-was
war.
in
to what la¬
now
unionism
of
areas, inhibiting the spread
centralized ;unionism.,.
Also,
position
labor's
Canada is similar
tain
at
that in terms of pres¬
groups,
after
strife
industrial
It may not be entirely cor¬
rural
allowances are
influence, too.' At any rate, the
Hill & Co.
Heme, Jack
ers to change the location of their
political color in Canada that was
Mellon Securities Corporation Pittsburgh
Herron, S. Davidson
employment.
All of which goes highly socialistic two and three
New York
Hettleman & Co.
Hettleman, Phillip
to show that the Domipion is
New York
i
Francis I. du Pont & Co.
free,vears
is
idl
sWfti
back
Hewitt, Charles L.
New York yyi. from some of the political pres-+^
;; Blyth & Co.
Hewitt, Max
to "normal."
sure
that burdens this country's
Chicago:,
Harris, Hall & Co.
Hey wood, Gene B.
economic stability.
—
v*/ '-.v
■Chicago
Kidder, Peabody & Co.
Hibben, Joseph W.
Indeed, Canadian political and
Chicago
!
Hickey, Matthew J., Jr. Hickey & Co.
economic
thought
is
New
York
'
thoroughly
Vilas
&
\j
Hickey v,
'
Hickey, Thomas J.
5
imbued
with
the understanding
Charlottesville
Peoples National Bank V
*Hildreth, William S.
that the Dominion's existence is
Nashville
Nashville
Securities
Co.
*Hill, Albert S.
at
stake
in
international trade.
Los Angeles
Hill Richards & Ow
i
-Hill. Carey S. ;
Her prosperity is literally tied up
Cincinnati y 1
;
Hill, Douglas W.
•/: Hill & Co.
♦Hill, Jay W.
/
^
"Hill, J. Gordon
?
x
Hilliard, Edward H.
Hilliard, Richard D.
$
*Hinchman, Robert M.
Hipkins, C. A.
#
Hodge, Charles J.
to
shoulder the burden generously if
about
6.
Chicago
/
Cincinnati
American National Bank
contribute
million Frenchmen in the eastern
dustrial
if the worker did not quit
job voluntarily, has not been
5.
•1
:
available
ciary can refuse twice a job offered
to him by the governmental em¬
ployment office. - Refusal for a
third time disqualifies him from
the receipt of benefits.
No rigid
provisions exist as to the kind of
employment he has to accept.
■
San
made
S.
one
sway
y:>v,'y'.\': y'-;
are
U.
For
Be
militant
factors
taining wages below the level in
the
case
-v
his economic think-
on
on
participated in the dispute which
Chicago -v
Ottawa
• !':
Hendrix, W. R.
Henshaw, Edwin C.
days
only
New York
Illinois Company
^
•
y
Benefits
4.
causes
*Hemenwav, Charles F.
of
the
dismissed
Cincinnati
J. C. Bradford & Co.
number
words, if he worked for five years
uninterruptedly, he is entitled to
a
full
year's benefit.
Few are
likely to be that favorably situ¬
\
New York
Heller, James M.
Henderson. T. C.
;i:;
New York
■
the
dampening radicalism and main¬
;
/
New York
.
Prospective Trends
influence
ployer, made contributions in the
preceding five years.
In other
ated.
■
,
inSworker, and his em-1
Other
the
of
which
Toledo
Harris, Hall & Co.
f
(Continued from page 2701)
Chicago
South Bend
Hawes, Hardin H.
; :';
Wertheim & Co. x.,-;- ■;
Hawes, Theodore W.
Journal of Commerce
Hayes, W. Kenneth
E. H. Rollins & Sons
Hazelwood, Charles F.
New York Times
Heffernan, Paul
Heimerdinger, John G. Walter, Woody &
.x ;, : .-v
Heimerdinger
v
Canada/s
.
Wm. P. Harper & Son & Co.
Sills, Minton & Co.
Stranahan, Harris & Co.
Hatcher. Robert L.
;
Chicago
Chicago
Shields & Co.
...
CHRONICLE
Chicago
,
:
Mason, Moran & Co.
,
•
Lynch, Pierce,
Fenner & Beane
r
' '
■
Harkness, Edward M.
Harmon, Robert R.
Harper, Paul C.
Harper, W. Paul
Harris, David J.
Harris, John S.
Harris, Norman W.
Harrison, GeorgeG.
v
Harter, Robert L.
Hartshorne, Ernest F.
Hassman, Elmer G>
;
THE COMMERCIAL & FINANCIAL
Number 4444
Thursday, December 6, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
2750
the basic prob¬ ; capital from, abroad with which
Dominion's post-war to build up the mining, industrial,
In the fiscal year 1936- and transportation system of the
That brings up
Labor Efficiency
However, the drawback of the
labor situation is: lower efficiency
than in the U. S.
parison
is
mechanization
reached
and
the
(but not in com¬
Britain). The reason
"structural":*- the fact:
to
partly
that
Trends
Canada7s Prospective
)
(Continued from page 2749)
pressure means lesser urgency of
wage and other demands.
as
cannot
reach that far,
narrowness
market.
given
the Canadian
of
But that is
the story.
not
has
far as in this country
only part of
What is more irritating
spectacular decline of effi¬
ciency during the war, a conse¬
quence
of recruiting
inexperi¬
enced workers and of the human
wear and tear in turn
due to six
is the
of work at long hours. La¬
itself, or at least its intelli¬
years
bor
gent leadership, is aware of this,
as stated recently
in an indepen¬
dent
trade union
have
instances
less
come
to
our
inattention,
crude
of
observation
"Count¬
paper:
sloppy workmanship, flippant at¬
titudes
lence?'
inexcusable
and
This is
inso¬
trade union edi¬
a
torial, mind you, addressed to the
teeism
textile
Canadian
in
mills
10 to 30%. Can¬
agree
that
they have no quarrel with the
wage level, provided they can re¬
store labor efficiency at least to
its pre-war standing.
No doubt,
after
a
period of rest and : reshifting, a return to normal may
be
expected.
But
even
then,
nothing equal to the American
"tempo" can be forthcoming —
tuns
high
as
adian
which
as
industrialists
is
the
for
true
top
agement as well as^for
all ranks of employees.
man¬
virtually
But by
and large, the normal difference
in manufacturing productivity be¬
Canada
presumably
sated
and
by
the
minimum
rate
the
than
more
U.
S.
is
compen¬
wage-differential:
there, against
raise it
25tf
the pending legislation to
to
the
of
economy.
members, complaining about their
"unwarranted incompetence." Just
like in British coal mines, absen¬
tween
an
lem
1937, which may be regarded as
normal, roughly 46% of her com¬
modity exports went to the Em¬
pire's pre-war share had been ris¬
Obviously,. Canada
slowly.)
ing
lives not just on
exports—on ex¬
ports to those two areas. What is
more, her trade with the neighbor
is more than compensated by im¬
millions
ports, with a $50 to $100
pre-war
average
import surplus,
while the trade with
her
a
Britain gave
surplus of exports ranging
to $200 millions. Theoretically,
i.e., in view of international price
relationships, there is no reason
up
why this favorable balance could
not be maintained. Nor is it like¬
ly to be influenced by exchange
rate manipulations: so far as can
be foreseen, the Canadian dollar
is bound to be, kept at or close to
present rate against the U. S.
and v, the
British pound,
are
in
turn
practically
the
which
INVESTMENTS
Richmond Stock
Members
UNDERWRITERS
AND
pegged to one another.
; But
many other factors enter
discrepancy of wages is
into the picture which may change
maintained, Canada will enjoy
for years a favorable competitive it one way or another. Especially
position in international trade of so, in view of the long-run shifts
manufactured products, other than in the make-up of the Dominion's
heavy capital goods.
Of course, foreign trade, a process greatly
the
future
course
of
internal accelerated by the war. Briefly,
she has reached a high decree of
price and cost inflation will de¬
economic maturity as indicated by
termine the export outlook.
So
the decline, in thirty years,
of
far, however, the wartime accu¬
mulation of per capita liquid sav¬ "raw materials" from 51 to 18%
of total exports, and the simul¬
ings amounts to less than' onetaneous rise of "fully or chiefly"
half of the level reached in the
manufactured products from 33 to
U. S.; less than it is in Britain,
66% or so. In other words, Canada
top. All symptoms point to the
is turning more and more to an
considered
judgment
that
al¬
exporter of manufactured goods
though Canada is bound to follow rather than of raw materials, a
International Trade
If
Exchange
DISTRIBUTORS
OF
Investment
1108
•
E. MAIN
Securities
ST., RICHMOND 10, VA.
Telephone 2-2841
Teletype—RH 460
this
American
maintain
be
prices, she is likely to
a
reflected
reasonable
in
the
"lag,"
to
Dominion's
change in her world market posi¬
with
momentous
conse¬
tion
.
the
,in
quences
war
foreign trade situation.
immediate post¬
era.
/,' /•'
Canada depends on
•
exports not
only for employment, but also for
a
growing
surplus to service her
external debt,
VIRGINIA—WEST VIRGINIA
retaining
and to attract more
then, is the outlook
much
as
of the war-time
pire, 39% to the United Kingdom,
and 40% to the U. S. (The Em-:
dollar
65£ here.
nation. What,
on
as
one-half
expansion?
:
Farm Production,
;
Prospects for farm products
far
from
encouraging.
>
are
Given the
wheat surplus in the U.
S. (600,000
now) and elsewhere,
the agrarian protectionism of the
consumer
countries, the relative
bushels
even
decline of demand for cereals, and
world-wide intensification of
the
their production—as
exporters to
the pre-war tune of $200-$300 mil¬
lions,
keep
the western prairies mayup their position, and may
even improve it for the emergency
year ahead. But in proportion to
the new measure of foreign trade,
their significance is bound to de¬
cline, unless they can offer new
products.. Shifting to cattle rais¬
ing is out of the question, since
the prairies are scarcely "fit for
grassland, and it would necessi-r
tate the
elimination of a large
.
of
number
families.
farming
It
takes years to
for
develop a substitute
wheat, such as soy-beans, suit-?
able for the arid soil and the short
season.
Anyhow, shifting from one
to another would mean mere-ly to change from one unsalable
crop
surplus to another.
Lately,
Canada
is
extending
long-term credits of $25 millions
Netherlands, $13 millions to
Czechoslovakia, etc. The total is
to the
supposed to be stepped up to $500
millions, most of it presumably to
finance farm, exports. This means,
in
effect, that the subsidy to the
farmers appears as
credits to for¬
eign countries. It is safe to predict
that subsidies in one form or an¬
other will be the answer to the
farm
crisis for many years to
come, just as in this country. At
present price levels, the cost may
millions annually,
less than 5% of the national in¬
be held to $200
come,
ried
burden that may be car¬
a
inflationary
without
But
quences.
conse¬
the implication
is
NORTH and SOUTH CAROLINA
*
MUNICIPAL BONDS
SOUTHERN
TEXTILE
W.
F.
SECURITIES
CRAIGIE & CO.
DEALERS
STATE
'.."V •/.
-
•
•/,*.-J
_
and
IN
MUNICIPAL
•
.
616 East Main Street
' ■
-
'
• ;
'
-
BONDS
" '
-
• -
RICHMOND
.
A. M. LAW &
-
15, VIRGINIA
,
,
■/
'
Telephone 3-9137
COMPANY
,
(Established 1892)
■'m:*;..'••'V.
Bell Teletype RH 83 & 84
SPARTANBURG, S. C.
Long
Distance
Corporate and Municipal
52
Securities
-W;:V«
/
.V.."J
'•
-.v
Bell Teletype SPBC 17
51
Georgia, South
•,
.
.
•
YEABS IN THE SOUTH
•>
0y0^
'■
Carolina,
;■
Tennessee,
Dealers
,
North Carolina,
Underwriters
Alabama, Louisiana & Florida
:
STATE AND MUNICIPAL
I
BONDS
R. S. DICI CSON & COMPANY
INCORPORATED
CORPORATE BONDS AND LOCAL STOCKS
:
NEW YORK
CHARLOTTE
CHICAGO
RALEIGH
RICHMOND
COLUMBIA
Direct Wire Between
The
Robinson-Humphrey Company
RHODES-HAVERTY BLDG.
Charlotte, New York and Chicago Offices
Walnut 0316
-
Western Union
Phone
ATLANTA 1, GEORGIA
Teletype AT 288
Long Distance 108
Volume
THE COMMERCIAL &
Number 4444
162
enjoy a comparative advan¬
over most other industrial
tent also barley, cattle, raw leath¬ countries, especially Britain.
2.
The
geographic proximity
er and cheese), which constituted
and easy, access to
the world's
v- even in^the'date
^30s; as much., as
"richestFeoUntry.and to its "know-.
products (mainly
will
flour, to a minor ex¬
tage
that agricultural
wheat
and
^three^fifths;ofthe: e^oint-tot at-(in
dpllars)^^iil .have tb^play a rap¬
hdw,'rr. plus: - close
interrelation
.with the. Empire, provide art; im-,
usually .favorable position. - v-*
:
idly .declining role;#*;
rc^'FFy^,:
.:y
■\-i*
''
^Miiiing./;Prosi>ects £ $'■
■■(*>The* subsoil, .disregarding gold
(id be~dis£ussed belo^v), is a more
stable source of .- export values.
*
important is F the tfact
both the United
Kingdom and the United States,
;3. Most
that compared to
Canada* operates on
:
flated
.l^icfcel,-L.-'Ieadt":^latihum- asbestos
V
and
uranium,,temporarily also tin
S
and
silver,: may:hold their owp.
with
mpnopQly tas
virtual
a
The
the
decline deyaluatipfr of her. "currency,
'; cheapest; producer. Even a
can¬
not fail; ta-show its effects on the.
international markets
especially
af£ect Feither
%
a
-consequent lag of Canadian
prices and wages behind those of
the competitors, in spite of a 10%
In
if
1 has
much less in¬
monetary .grounds,
and
less socialistic labor policy;
v.
Fthe output or thei profitability of
International Nickel Co. But cop¬
finished consumers' goods,
;in
which the American technique
of
for
which is the largest single
item, zinc and other materials, in¬
cluding aluminum that has been
expanded to a million ton annual
capacity, face cheap foreign com¬
petition and v over-supply.
The
opening of -high-grade iron ore
fields on Labrador and the low
mass
per,
cated;
4.
production
: V
dupli¬
be
can
her
expansion
capitalistic
another
is
abroad
and
at
IBA
home
PAST PRESIDENTS
1930-31
1931-32
1932-33
factor
strengthening her export position.
• 7.
The apparent size of Cana¬
da's foreign trade problem' is un¬
duly magnified by the rise of
prices. In
physical volume, it
needs only -a 60 % rise to maintain
a 100% increase in dollar volume
over ,the level of the late '30s.
...
,
past, Britain's need for
materials,
especially food¬
the
In
raw
stuffs, used to be the prime fac¬
tor determining Canadian exports.
In
the visible future,
■; for ;■ processed
mand
U.
S. de¬
materials
,(mostly fabricated and semi-fab¬
ricated ; products of
her farms,
mines and forests)
will have to
take the leading role, and do so
on
a magnified scale. Indications
Frank
years to come, our
absorb a billion dol¬
lar slice of the Canadian output,
that
are
for
M.
M.
Allan
Cordon
Henry
Pope
T. Ferriss
market may
Canada has become the larg¬
of American goods,
est cash buyer
for U. S. invest¬
ability for continued
outlet
favorite
ments,
27511
FINANCIAL CHRONICLE
taking almost $1.5 billions worth,
more
than 80% of her total im¬
or
more.
is
This
not
an
overly
optimistic prognosis in view of the
labor pains, inventory and obso¬
lescence
troubles,
reconversion
substantially larger favorable one.
In
banking and com¬
services, * its position is
insurance,
mercial
lengthening the lifetime of
course,
the mines. What is more, new ex¬
plorations on a vastly accelerated
scale have opened up a wealth of
likely to be improved, too, and
fact will
gold reserves both in Ontario and
not merely at Britain's expense.
bargaining delays, pent-up demands, interna¬
in
northwestern Quebec, which
But all such prospects are over¬
tional
commitments,
and
exces¬
potential of oil,and asphalt position in tariff bargaining. Also,
cash
accumulations under shadowed by the spectacular de¬ makes doubling of the pre-war
strip-mining in Alberta are very the trend in the United States is sive
output a virtual certainty as soon
promising,
but
have not yet in the direction of relaxing on in¬ the shadows of which our own velopment of gold mining.
Gold exports reached as high as as labor and materials are avail¬
industry operates—in the face of
reached beyond the stage of minor
dustrial (not on agrarian) protec¬
■
Canada's comparative cheapness $200-odd millions in 1941, and de¬ able.
growth and major hopes. In both tionism.
'•
Short of prohibitive wage or
and in view of the fact that her
clined subsequently to almost half
cases, new transportation has to
5. The old and the new indus¬
tax policies, the Dominion is ex¬
industry has been.well-integrated of that amount. Presently, labor
be developed, too.
«
trial capacity of the Dominion is
produce by 1947 at
into the American system of pro¬
shortages are more acute than pected to
All told, subsoil products may
being reconverted. Its output will
least $400 millions worth of gold.
duction and distribution.
during the war, but the interrup¬
account in the first post-war years
be forthcoming
at a time when
(Continued
on page 2752)
Invisible exports add other fea¬
tion
of
production
means,
of
for scarcely 15% of Canadian ex¬
everywhere an unparalleled ac¬
ports.
this
Obviously,
greatly strengthen her
cost,
.
,
ports, if the latter should
tain anything like a two
dollar level, to say nothing
main¬
billion
of the
ies,
billion
volume, as against less than one
billion in the late '30s, and 2.4
billions in 1928 -(at present gold
three-and-a-half
recent
prices).
,
for
States,
depleted
vides
manufactured articles, partic¬
ials, will become available at fall¬
ing (or lagging) prices.;
,
6. So long as Canada retains the
favorable balance of payments on
with extraordinary' current
Canada
mater¬
imports, consisting of raw
shortage in the Unit¬
combined with totally
lumber reserves, pro¬
chances. Since
demand
inflated values
in
resulting
*
inventor¬
ularly for capital goods. On the
the major part of its
The paper
-
ed
pent-up
other hand,
f
>
of
cumulation
coincides with depleted
and remains a
accounts,
thers
to
Canada's economic cap.
brought in 1938 a
Tourist traffic
round $180
millions net in foreign
as
a
ping,
Municipal and
10-15% de¬
exports. Ship¬
substitute for-a
cline of commodity
Corporate Securities
Dominion's ton¬
the
with
multiplied, is likely to turn
from a pre-war unfavorable item
of about $20 millions (net) into a
nage
\
Europe's shortage
WEIL & ARNOLD
Scandinavian
Competition, is not likely to play a
major role on this side; pernios
is much more acute,
NEW ORLEANS 12,
after tormage dif¬
overcome. As a mat¬
consumption is rising
world-wide scale. Qx coaxse.
ruthlessr exploitation of the
.Louisiana'arid Mississippi
;
a
the
Raymond
Phone
Dominions
.
MuMwipal Bonds
-
Bell
0711
vast forest resources
limit some day; The
expansion of paper and
cardboard capacity in this country
bring the boom to a
JOHN
halt at
Members New
-
a
much earlier date.
In the mean¬
Orleans Stock
Harold H.
Abner K.-Northrop
Dane *••/
Exchange
rise substantially
may
and value, most
•
,
chandise.
>
.
]';1
: r-F
in
of it in
Distributors
Underwriters
Scharff L Jones
(NCORPORATID
v..
Corporate and
Municipal
Securities
V-r'
F
TELETYPE
NO
180
& 181
WHITNEY BUILDING
NEW ORLEANS 12
SHREVEPORT, LA.
—
,
^
L. D. 25 -
MAGNOLIA 1271
JACKSON, MISS.
Manufacturing Progress. *
J
1
•
v'.'-a.V.4'
James'J. Planche
*—
processed rather than in raw form.
That brings up the question of in¬
dustrial exports, the core of the
country's foreign -trade in mer¬
-•
SECURITIES
12, LA.
figured some $160 millions in the
1937 trade balance, and $440 mil¬
lions in 1944 (around 15% of the
total),
Teletype—NO .173
CORPORATE
MUNICIPAL and
DANE
NEW ORLEANS
time, however, Canadian exports
of wood and wood products, which
volume
:
v
will reach its
current
may
-
LA.
are
ter of fact,
on
' CANAL BUILDING
?"
for years, even
ficulties
BROKERS
DEALERS
UNDERWRITERS
year's gold
exports.
It
promises
further
growth, after the war-time lull,
exchange, equal to that
Industrialization has been
accelerated; during the war
vastly
by . the
of several billions into
plants and equipment (such
sinking
new
Nusloch, Baudean & Smith
tools, chemicals and
is not only the direct source of
substantial exports, but also the
as
machine
foundation
turing.
In
NEW ORLEANS
»
■
,
'
12, LA.
.
MAgnolia 4701
manufac¬
this respect, Canada
of low-cost
V
TELEPHONE
DEALERS
DISTRIBUTORS
UNDERWRITERS
TELETYPE
NO 188
Florida Bonds
v
BUSINESS ESTABLISHED 1924
DISTRICTS
COUNTY
MUNICIPAL
ALL ISSUES
FLORIDA
Firm Bids
—
Firm Offerings
—
Quotations
;F
MUNICIPAL BONDS
Inquiries Invited on
Florida Corporate Issues
and Local
TELETYPE—OR 10
Long Distance
„
Bell Teletype JK181
47; 5-3680
JACKSONVILLE I, FLORIDA
BUILDING
ORLANDO, FLORIDA
'BELL
CORPORATION
CLYDE C. PIERCE
LEEDY, WHEELER & CO.
FLORIDA BANK
Securities
LONG
DISTAf»ICE 27
Branch Office
-
-
-
-
ST. PETERSBURG
Trends
Canada's Prospective
international
possibility in view of the current
inflationary trends. Nor is Can¬
ada swept by anti-mining senti¬
ment which has led South Africa
at
times
to
repressive
action
against absentee
owners. Well
(Continued from page 2751)
But there is little danger of seri¬
ous labor troubles in the remote
mining districts with their highest
paid working population (around
$40 a week, against an average of
scarcely
over
$30 in manufac¬
tures), and the Dominion is in the
process of reducing taxes, includ¬
ing the elimination of a 10% war¬
time duty on imported machines.
Lowering the gold price has be¬
is
it
of
distinct
a
to the level which XL
lowance
oil
producers
600,000 persons are suppos¬ •)\ Canada's
edly
shareholders in the
production,
gold
ion's
them its citizens.
Indeed,
the
enjoy would
S.
com¬
pensate at present for a conceiv¬
able increase of costs.
- '
*
over
balance
of payments
Domin¬ on "current" transactions—visible
most of optical glass production), and the
\ i ';■/
iexpansion of old. To keep a vir¬
expansion of gold
preferential rates may mean
the
loss
The
must originate from
15th
TRUST BUILDING
FLOOR AMERICAN
over-compensate the declining
limping demand for its raw ma¬
terials.
TENNESSEE
NASHVILLE 3,
'
'
The problem fills the
SI
'
with anxiety, and
among
in
SOUTHERN
all
political
SECURITIES
i
Canadians
naturally their
to
re-orien¬
foreign trade in non-Bri¬
tate her
An
directions.
tish
Exports
Imports from: '
impoverished
BRANCH OFFICE
minor
NATIONAL BANK BUILDING
the
6 or 7% tariff
re¬
on
•
ment, in addition to protectionist
motives, reinforced by the Cana¬
dian desire to cash in on the bil¬
OFFERINGS
lions of "mutual
aid" provided to
Britain, and the fear that
countries
;
not,non-regis-*
effect a
or
glance at the fol-J
called U. S., as a
v.--.1943 v >" %
United Kingdom
'
6.3
\ ,..1.8 1
.
.023
__J._
Indies
East
Other Empire
''
-.
All other countries.-.
•
"mutual aid" and similar items.
Of
^
war-time
needs,
shortages, and, the ab¬
course,
sence
of
be
loss of
1.235
35.9
.181
5.3
.204
8.9
.518
15.1
<
Total
shipping
$1,301
:
European:/ competition
discounted on the ex¬
virtually one-half of Canada's ex¬
ports should be absorbed by the
purchasing capacity of the
Empire would be tantamount to
cutting the total in a catastrophic
fashion,
with
proportionate
shrinkage in employment and na¬
tional income. It would mean for
limited
the Dominion a
depression of first
magnitude. It would upset its in-
4.3■-/
$1,736
37.8
countries.--/.
1.3'
4.6
.073
5.3
.
...
.081
•
i/:
7.8
.135
•
,,
-4.4
$1,760
„««.„"j
.
82.0
$1,424
82.2
.032
_
United States
.
lowing figures (in billions) shows;/
.092
$1,149
38.7
1.033
34.8
'
-
4.8
.142
.227
7.6
.421
14.1
$2,972
$3,439
ternational
balance,
its
enlarged
greatly
import vol-;
without:
contract
not
could
ume
because'
too,
depressive effects.
fImports have come to consist
largely of three major groups;
raw and processed farm and plan¬
tation products for the consumer (sugar, tobacco, fruits and vege¬
tables, spirits, vegetable oils, tea and coffee); industrial raw ma¬
terials (oil, coal, rubber, cotton,
wool, iron and steel, etc.); capital
goods such as machines and boil- V
further
agricultural:-
and
electrical
ers,
implements, motors and parts, etc.
In other words, Canada's ability
export $3.00 worth of finished
to
products is based now on her im¬
porting, say, $1.50 worth of means
to do so. The larger the first, the
more favorable its excess over the
second. On the other hand, a de¬
cline of the first is not followed /
automatically by a proportionate
i
State and
compression of the second, because
internal pur¬
the latter serves for
well.
poses as
Bonds
St. Francis Levee
of
••
it
likes
tered member of the trading area '
.078
l:—L-C
Total
in
is
Empire all':
'•
the
she
Whether
.111
Mississippi—-Tennessee
Arkansas
goods, replacing
along the line.,/
All other countries
should
trade
exchange
biggest (cash) buyer of Canadian;
:
is relabut is port side. But an approximation
to the pre-war in the sense that
th$ whole in view of
impediments of
restriction
type.
However, they have acquired an
emotional status which has a great
deal to do with nationalistic senti¬
the
become, and is bound to stay; the v
$1,447
East Indies
sort
They may amount on
"modern"
•
;
But
cant.
United Kingdom
Other Empire
be much more signifi¬
the United States has
likely to
1944
'
*
United States
idol.-
to a
Europe and Latin America are "
ern
]
have
will
Canada
Do¬
duction, an advantage that
vant in individual cases,
MEMPHIS 3,TENN;^
BIDS AND
who
competitors
Industrial
,
,
imperial preferences, the impor¬
tance of which is easily over-esti¬
'
FIRM
one
'
average
;
:
many
only
"¥r'r;.-V;
j Note that the Dominion received
no
lend-lease, while its export
The problem of Canada's indus¬
trial exports cannot be solved by figures include the substantial
of
iv
?V''V
is
Canada
Empire, especially India and1
South Africa, may expand.
West¬
Canada
'
are
mated.
FIRST
;
overcome
Exports to:
ences, which originated in the
minion, have become lately a
We Invite Inquiries
:
to
cannot be ignored.
focused on the Empire.
Discriminatory
Empire prefer¬
eyes
likely
which
in
•
,
Even
it more
than partially; besides, they would
naturally tend to canalize British
purchases into the United States.
Also, Britain will appear primar¬
ily as a buyer of raw materials,
Imperial Preferences V ? v
TELETYPE NV 1&4
TELEPHONE 6-5661
/
the
of
market under early
conditions.
.
not
capacity to substi¬
for its war-time outlets and
to
narrowness
both of which are out of the ques-1
manufactures.
or
the
tion, Markets in other parts of the :
industrial
tute
Shillinglaw & Co.
Formerly Gray,
y
Co.
presents or swallows an equiva- '■
lent quantum of English exports,
S.
U.
post¬
things stand, the Dominion's
hinges on her ability to
find markets for a vastly expand¬
Shillinglaw
Empire-advocates seem to
the
substantial
American credits to England are
war
future
ed
billion
a
dollar rate, or anywhere near, un- ;
less
Canada
continues • to make :
British
As
A.
buy at
England/cannot
subsidiary
of
overlook
tually duplicated industrial appa¬
ratus going, and to maintain and
Canada's pros¬
come
a
political impossibility in
further
the
enhanced
perity and international balance. improve
view of the vested interests grown
It may be assumed with practical
living standards, greatly enlarged
up around the
10% discount on
certainty that a major rise of its imports are needed, which in turn
the Canadian dollar, while a rise
call again for exports far beyond
[the pre-war level.' Their bulk
output is vital to
the
plants.'
would be met
by
governmental
relief action.
Merely raising the depletion al¬
of production
cost
Thursday, December 6,v1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
2752
All
f
'
/'
adds
which
of
'
■;// *
up
■..
to
two
/
conclusions: that the maintenance
Arkansas
of
an
volume approxi¬
war-time average is
Canada's prosperity; and
these exports, and even
export
mating the
Municipals
;
BOND DEPARTMENT
vital
to
that
for
more
Bond Department
for the
so
>
concomitant im¬
Canada has to rely on the
States. Uncertain as the
outlook may be beyond the next
few years, the scales are weighed
definitely in her favor.
ports,
United
Union W.anteus
/
MEBCANTILE
National Bank & Trust Co.
Bank, and
ST. LOUIS I
"
sources
-
i
BELL TELETYPE
LONG DISTANCE 218
-
X
NEW
YORK
14
dividends
STREET
H
f
i
Newhard, Cook & Co.
[
( MISS
H|
I
mm
Members New
surplus varied between some
Firm Bids
•
Balance
of
-
During ; the ; war, this balance
used largely to finance Bri¬
tain, and partly to repatriate much
British-owned and some American-owned Canadian securities,
BONOS
Underwriters and
Firm Offerings • Quotations
a
Indebtedness
was
York Stock Exchange
-m
MUNICIPAL
creditors
$190 millions in 1938 and an esti¬
mated
$1,200 millions in 1944.
Normally, it serves to reduce her
debt or to acquire assets abroad.
IN
ZMCM.HU
ARK
foreign
to
annually)—is
likely to show a favorable sur¬
plus, except in utter depressions.
MHflBJHlwsssmr
■
...
(over $200 millions
The
SPECIALIZING
an
trade, including gold
movements as well as interest and
CORRESPONDENT
WALL
on
and invisible
_
ME 99
/'"* :'K'
of
natural; re¬
extraordinary scale
wealth
A
1.
Memphis 1. Tennessee
;
Distributors
Listed and Unlisted Securities
Municipal Bonds
|
in
strengthening
the
held in U. S.
additiop
to
monetary
reserve
<
(probably $1,000 millions).
Disregarding "mutual aid" and
war
credits, she is now year for
dollars
the receiving end of the
funds. The net sale
securities to the U. S., not
year
on
flow of credit
of
counting
fe IFqisist
OF
MEMPHIS
MEMPHIS 1,
TELEPHONES
5-3637 • 5-3638 •
"direct investments,"
millions in 1944,
'43, and $109 mil¬
amounted to $113
LD-3H
FOURTH & OLIVE
'
New York
TENNESSEE
•
LD-312
TELETYPES
ME-283
•
ME-284
STREETS
SL LOUIS 2, MO.
Correspondent, Clark, Dodge & Co., 61
Wall Street
$181 millions in
lions in '42.
-/
.
result, foreign investments
in Canada have risen to the new
As
a
high of an estimated $4.5
they tend to rise further.
billions;
This in-
■
*
THE COMMERCIAL- & FINANCIAL CHRONICLE
;
eludes
ownership, of
the
branch
In Attendance at IBA
300
major and many other American
corporations,
making , Canadian
industry a virtual subsidiary to
I, and assembly plants of some
-
■V
ours—and
in
1 7/'.
post-war boom.
our
(Continued from page 2749)
Harold H. Huston & Co.
Huston, Harold H.
Hutchinson, Herbert A.
partner, so to speak,
a
Meeting
f;.' But a weakness of the Canaf; dian economy, from the point of
view of investors, arises from this
growing indebtedness. However,
'.'•v- it should be weighed in the light
■.■y
Hutton, James M., Jr.
Hutton, William E.
V
:
.
Seattle
Chicago
W. E. Hutton & Co.
Cincinnati
New York
W. E. Hutton & Co.
•
& Co.
W. E. Hutton
Iglehart, J, A. W.
•
<
McMaster Hutchinson & Co.
•':
;"•/•/
New York
.
'/
■'
Chicago \
Jackson, Charles J,JJ-7 Newsweek
San Francisco
Sutro & Co.
Jacobs, Irving P.
/Minneapolis
of
the
circumstances.
For one Jaffray, C. Palmer 7/J■/ Piper, Jaffray & Hop wood
R. S. Dickson & Co.
Chicago
<•
; ..
;
;
thing, past records suggest that Jammer, L. R.
Los Angeles
William
R.
Staats
Co.
*Jardine, J. Earle, Jr. •
Canadians will not miss opporNew York
V
McLeod,
Young,Weir,
Inc.
l.tunities to repatriate outstanding Jarvis, W. H. Rv/,S/:^V
Chicago
;
■; /; First National Bank
securities and to acquire foreign Jenner, Austin
•'",' Chicago !
assets to offset a growing debt. Johanigman, S. E.
/;■•>•;::: Milwaukee Company
Woodard-Elwood & Co. ' " V
Minneapolis •
Of
course,.
exchange
control John, Robert S.
Milwaukee
Milwaukee Company
: .'; //:
covers
all V foreign
claims, in¬ Johnson, Joseph T.
New York t'r
R.
H.
Johnson
&
Co.
cluding the increasing American Johnson, R. H.
*
Johnson, Lane, Space & Co. i Savannah
Johnson, Thomas M.
participation in Canadian mining
*
Johnson & Johnson
Pittsburgh
J ohnson, Wilbur Er •; ,i / .
C and industrial stocks, and in direct
1
Ma*on, Moran & Co.
i •,
■ i Milwaukee
ownership of enterprises. The con-. ^Johnson, William A, •
New
York
'I
t »
y A
/ ■ii Wood, Guiidy & Co.
trol over the outflow of capital Johnston, Edwin
•; Johnston, Lemon & Co.
; c ■Washington
Johnston, James M.
.
/•
,
.
.
:
'
>
.
•
.
,
v
Guaranty
Kiendl, Arthur H.
Kiep, R. J.
:
""
Kimball, P. C..
1
:
Kimball^Roriald M.
King, Joseph H.
>
'
King, William P.
:!<Kingsbury J. Wallace
Kingsley,Mabon
Kinloch, Bohun B.
Kirkland, S N.
Kirkpatrick, S. R.
New York
Trustfcompany
Chicago
Chicago
Sills, Minton & Co. ' •
Chicago
Continental Illinois Bank ,
Union Securities Corporation New York
'
William Blair & Co.
'
:
Harris, Hall & Co.,
New York
Kingsbury «Sc Alvis
New Orleans
New York
Mabon & Co.
I
Kinloch, Huger &. Co.
Jenks, Kirkland & Co.
,
Charleston
,
Philadelphia
Omaha
Kirkpatrick-Pettis Co.
First Boston Corporation
A. C. Allyn & Co.
Geo. D. B. Bonbright & Co.
Kirtley, Arthur E.
Kistner, W. E.
Kitchen, John H.
Klute, Roy H.
;
Kneass, George B.
Knies, Arthur C.
Knight, Augustus
Knight, Newell S.
*Knopp, Bernard B.
Knowles, James H.
Kohler, B. M.
Chicago
Chicago
Rochester
Chicago
Mason, Moran & Co.
Philadelphia National Bank
Vilas & Hickey
Philadelphia
New York
Bacon, Whipple & Co.
Mercantile-Commerce Bank
St. Louis
First National Bank
St. Paul
Mellon Securities
Chicago
Corporation Pittsburgh
Chicago
& Sons Co.
H. C. Speer
.
,
Mr. and
♦Denotes
Mrs.
(Continued on page 2755)
-
,
K.•■■■/'.
,.
has been strictly enforced during
7
the
Since,
war.
a
progressive re-
jlTaxation is taking place. Dividend
v
and interest payments were forthcoming without difficulty, but the
repatriation of American capital
invested previous to 1939 is still
subject ' to ;: special
permission
"which is available y now "within
'/
limits.'*
'
.
.
'
*
,
.
.
,
It may be safe to assume that
^
^'^'yC^haidiah/-■ exchahgei- ^/pblidy-v/'will
closely follow the American, and
.that an independent devaluation,
/
or
a
tightening of foreign
restrictions would , be
severe
'.• exchange
■i; resorted to only in
in
tal
such
emergency,
nary
extraordi¬
an
as
crisis
a
Johnston, John R.
/ McDonald & Co.
Jones, Elisha Riggs i U: E.R. Jones & Co.
Joseph, Herman B./77; Joseph & Co. - \
Lewisohn & Co.
Kalb, John
Kales, Davis
;
0
Kandlik, Edward
-
-
Kane, Leo A.
AX'
Kaufman, C. G.
i / >
Kealty, Joseph L.
*Kebbon, Richard A.
Kennedy,Frank T.AM' >'
Kent, Russell A.;)
Kerwin, John A.
Kerr, William D. J:JJJ7
Ketcham, TuthiliJx';'
Kidd, William E.
♦Denotes
:
•
New York
.■
{
-;p.•
Louis
1. -;
Stifel, Nicolaus & Co.
/
•
Exchange
-V
>
Mr. and Mrs.
v
Central 7600
Direct Private
■■
Chicago Stock Exchange
New York Curb
; /
^
.
Exchange, Associate
Saint Louis 2, Mo.
Bell Teletype SL 593
'
.
,
Wire Connections
:■
■
Exchange
St.
300 North Fourth
flight of funds from the Domin¬
a
New York Stock
Stock
Louis
Chicago Board, of Trade
Chicago
exports, and cessation of capiinflux from abroad, plus the
ion. Such
^ »•
*
,
St.
Nashville
J. C. Bradford & Co.
JONES & CO.
MEMBERS ■
Chicago
Bacon, Whipple & Co.
Banks and Dealers
Specialize In Orders For
EDWARD D.
New York
J /San Francisco
Kerwin, Fotheringham & Co. /St.
i
We
•
Chicago
'E
In All
Securities
■<
St. Louis
Kebbon, McCormick & Co.
C. J. Devine& Co.
Trading Department Is Active
Local Listed And Unlisted
v
1 \
Chicago
& Co.
Our
V;/
MARKETS
LOUIS
ST.
■
I Chicago
.New York
Shields & Co.
Bank of America
/
/i;
New York
Commerce Union Bank •
O. H. Wibbing
:
Baltimore
Cleveland
\,.y
,''
"
Chicago Sun
National City Bank
•
Cleveland
a
,*
■
& Co. and
with James E. Bennett
Josephthal & Co.
.y.
combination of adver-
'
of many of them, could
but it does not appear to
sities,
or
occur,
strophic
Stix&Co.
Short of cata¬
be "in the cards."
Canada
occurrences,
"v^
should remain what she is at pres¬
ent: the
;
leading, nay, the one outstanding, area serving as an outlet
for American private and corpo-
;
rate capital seeking sound invest¬
ment abroad.
>
..
J»'• :
,i1
investment securities
J
UNDERWRITERS and
DISTRIBUTORS
Members • St. Louis Stock Exchange
INSTITUTIONAL and
CORPORATION
OLIVE.
309
STREET
ST. Locus 1, >IO.
:
V
Reorganization Bill
lilSiBONDS/and STOCKS
Passes Senate
v
The
Senate
passed
on
Nov.
19
granting extraordinary
power to the President to reor¬
ganize the Federal government,
,the
bill
the
must
!
go
before
a
a
piece
in
be ad-
l(
|:
-'
•discovered
he
what
termed
~
./ -.■'
■/
■
'
•Vied.
a
V
'*■ ■ ■-
"
■'■" ■■ '■ — ■■ ■ '■ •
/
.
with "quasi-judicial" powers, and,
Virginia
Senator < told
the
'the
"This would permit a
Senate,
'f. wholesale exemption, it appears to
me." The Associated Press'also
'
.
addition to
In
Senate
the
moves
^
bill
fifteen
Members
>
St. Louis Stock Exchange
-
;
from
SERVICE IN ALL LOCAL
-
".V*"*
V.
v
•.
'
7.
>iry::
•
ISSUES A)
-v/*
>A'y /
.* ' • t * e
'«'« i ' '
.
of the bill. They include the
v
following
Federal
commissions:
Interstate Commerce, Trade, Communications, Securities and Exchange,
Power, - Maritime
and
Tariff; three agencies dealing with
railroad labor; the Federal Land
Bank System; the Federal Deposit
'. Insurance Corporation; District of
Columbia municipal government,
General Accounting
Office, and
the Army Engineers civil func-
'j1 .'«'
V ''S
.'V; {' -x *."»''•*
vv. v--
•••.'• ..v'
STOCK EXCHANGE
.
V
r.V
PRIMARY5
Street, St. Louis 2,
>
Mo.
Teletype SL 158
—
s
Industrial -^ Public Utility
and Railroad Bonds
T
E
■
Bank and
R
/
I
BANK 6- INSURANCE STOCKS
THE
NATION
and
.
I
//'
T
-
B
Real Estate Bonds
F. H. A. Mortgage
U
Loans Made,
Bought and Sold
"
T
V
O
E
r
v
R
Corporation Stocks
Catholic Institutional
R
R
Approved F. H. A. Mortgagee
s
s
ALL MIDWESTERN AND LOCAL ISSUES
CENTRAL
VALLEY TRU8T BLDG.
Private wires to:
SAINT
New York, Chicago
Tl® Locust
LOUIS 1, MO.
TELETYPE
0282
and Kansas City
SL
477
Street
9
Co.
MetropollMam St.Loiuis
MISSISSIPPI
H
l
:
;/;////Saiint LouSs.Mo.
BELL TELETYPE
'
tions.
''•*
I
Municipal
R
MARKETS|lN
■
•
'•
CO.
-
.
' )"
.n t
...
•!
;,///■ Western Union Phono
71
W
re-
the
-
scope
,•'!
'r . , / i 'i
\" tf<* i* t 1 * •» 1 '
,
.
specifically
' L'
D
D
WHITE 6- COMPANY
its language ex-
agencies
v
u
N
empting "quasi-judicial" agencies,
V
,1
Exchange
"
/
N
'
Chicago Board of Trade
clause that would prohibit the
V said:
i
•v.'-v'LJ,'p.-
,
'•'-I
■/
President from touching agencies
I
"
U
!
•;'/
^
Chicago Stock Exchange ' New York Curb (Assoc.)
Senator Byrd's reference was to
,
v r
/
MEMBERS ST.. LOUIS
Long Distance
MeTttbeTS ''' •■ :J
■ 1
New York Stock Exchange
Si. Louis Stock
."■■: jv-/''/.'
'f
^
- "■
319 North Fourth
;,r.
■/■
hJ'c;$£x
,*'/ (>.'i
5
a
a
"loophole" that might allow scores
:
of departments, agencies and bu% reaus legally to oppose any reor¬
ganization,
and the ambiguous
wording will have to be changed
in the legislation as finally drafts
.
.•
O. H. WIBBING &
Investment Secu rities
l
justed; in addition, just before
Jr.) final approval of the Senate bill;
■/Senator Harry F. Byrd (D.-Va.),
7 according to the Associated Press,
v'a
"*
^ >..i '«t {t* w
' ,r J
'/
TRADING
Telephone REctor 2-1853
Bell Teletype—NY 1-2748
.
Long Distance 395, 396 & 310
of
tween the two measures to
"
•'
differences exist be-
4. Numerous
i
14 Wall Street
400 Locust Street
legislation
may be drawn up from the Senate
bill and a separate reorganization
bill approved by the House on Oct.
that
order
*
\
New York 5, N. Y.
2, Mo.
Telephone Central 6640
Bell Teletype—>SL 174
Senate-
committee
conference
House
joint
v
,
1
•'A
Louis
St.
from Washington, but the measure
/'
V
ReinholUt A Gardnet*
reported
Press
Associated
J
! ;•
K "AM
'(
'
X,
—
SL 499
LONG DISTANCE 207
& 208
2754
THE COMMERCIAL &
FINANCIAL CHRONICLE
Thursday, ^December
assurance; of
(Uniform
>■:>
(Continued from page 2704) .yk*
the number intending to purchase
retail installment paper. Nearly
10/thousand banks expect to make
ordinary personal loans on the
installment -repayment basis, and
Consumer Credit Departments of
Banks, Rebate of Installment Loan
Charges, Automobile: Financing-*
dealer. Pian,Automobile Financ¬
ing—Direct
Loan Plan, Home
Appliance Financing, Aircraft. Fir
smaller numbers intend to make nancing, and Analysis of Soldiers'
consumer installment lpans direct and Saiiors^s Civil Relief Act of
to borrowers for the purchase of 1.9.40, as Amended.
?
r
The Association Jias also com¬
automobiles, householdaPPliances,
and other goods, and for repairs
pleted plans for a nationwide col¬
and modernization.
lection system for banks ..extend¬
Some seven thousand banks ex - ing consumer installment credit.
pect to purchase retail install¬ The plan provides for the. printment paper from dealers.
That ing and distribution of a directory
more "banks .will engage in .con¬
listing sthe banks that will be
sumer; installment .lending, than
equipped to handle the collection
in financing, through dealers . is of
installment
payments.
The
quite understandable; dealer fi¬ collections will be handled on a
nancing; is more complex, and re¬ reciprocal basis at established fees
quires more specialized person-' by the banks listed;
]
mel, and small banks often find
In
addition,
theAssociation
.
large
for the' bank to handle alone.
\ The
committee on consumer
; credit
of the American Bankers
) Association has been busy for
commitments
that
;
t
;
some
too
are
has been developing co-operative
working arrangements with vari¬
ous national trade^associations for
exchange of information and ex¬
perience and for promotion of
mutual
interests.
Similar
co¬
time helping member banks
to establish new consumer credit
operation
departments, enlarge existing facilities, and improve operations.
iRecently it has published man¬
uals
on
such subjects
banking associa¬
tions and trade associations is be¬
achieved at state and local
An example is the co¬
operative plan developed by the
ing
levels.
Personal
as:
among
Associa-
Bankers'
Massachusetts
Loans, Operating Cost Manual for
Fifty-Five Years of Investment Banking
UNDERWRITERS
DISTRIBUTORS
-
-
DEALERS
tion and,..the. medical and ^dental
societies of fbat, state for the
;
nancing of professional services.;
STATES GOVERNMENT
'
•
\
INDUSTRIAL, PUBLIC UTILITY, RAILROAD
REAL
ESTATE, BANK and INSURANCE SECURITIES
LISTED and UNLISTED BONDS & STOCKS
^
SX.tOUJS
direct« con¬
make
,
in
c
advance of!
The desire do meet the peed f of J correspondent banks in the towhs
the reappearance of consumers'r,
financing floor plans of. dealers of the various .retail .dealers the
durable goods in quantity on the and
providing manufacturers an<i opportunity of handling jthis cred¬
market.
For
example,* a . bank ; distributors with cash payments' it if they so -desire. Local banks
presents its plan for handling
dealer installment paper to auto¬
for
leading to the
or regional
"hank syndicates."
These syn¬
dicates
are
organized ; by large,
banks, in manufacturer and dis¬
and who wish to become mem¬
tributor cities, utilizing close re¬
bers of the plan are franchised..
lationships with their correspond¬
Such dealers are provided with all ent local banks in dealer towns. :
necessary forms, rate charts, ap¬
National .and
regional
sales
plication blanks, notes, and the finance
companies,
with
their
like.
They also receive appro¬ many branch offices, have been
priate
emblems,
for
example,. providing
complete J7 wholesale
"Centrust Purchase Plan —* Regis¬ and
retail
installment
sale
fi~
tered Dealer," to display in their
nancing,
including
insurance
places of business and thereby where needed, for the process of
indicate their participation.
The distribution from manufacturer or
emblem is also featured in. ad¬ distributor through to the ulti¬
shipments
is
formation of national
mobile and
appliance dealers in
its community and those meeting
its credit and other requirements
bank- to
of fhe
the
mate
public.
automobile or
an appliance finances it through
the dealer, signing an installment,
note. The dealer, in turn, sells the
note to the bank, which credits
his
account with the
proceeds.
The
buyer of the article then
makes
his
direct
to
installment
bank.
the
Banks
consumer.
have hot
been able to provide such a serv-*
ice in the past.
r .
It
be
would
impractical for a
manufacturer whose products are
distributed through
retailers
thousands of
endeavor
to
contracts for floor
to
make
plan and retail
acquiring
this
would
enabled
be
retail
In
case
1924
bank
The
manufacturers work
their
branches, the financing
own
V
MEMBERS
: '
■
.
...
.
•
,
New York Curb
(Associate)
Chicago Board of Trade
St. Louis Stock Exchange
ST. LOUIS 2
4-.
Bell Teletype—SL 288
3
409 NORTH EIGHTH STREET, ST. LOUIS
TELEPHONE:
GArfield 1721
61 BROADWAY,
1, MO.
CENTRAL 4744
NEW YORK, N. Y.
TELEPHONE: WHITEHALL 3-9394
fi
MYERS BLDG., SPRINGFIELD, ILL.
-
.
New
IV
in. large
cities
/
lead¬
could
profitable business to the
direct
small banks and thereby improve
and strengthen their correspond¬
ent bank
banks
relationships. The large
would
their
assist
wholesale
and
retail
corre¬
install¬
4:>'§
<11
in
and
western
west
states.
Among the 60 par¬
institutions,
10 haye
less
or
more
.extensive
branch
which considerably ex¬
pand the territories they cover.^
(.
Participation in this "Bankredit
Time Payment Plan" does not inf
volve
fees
or
"franchises," al¬
though as the plan has worked
out so far the participants in¬
clude only one bank in a given ;
Cit.y.
The banks are informally
linked by a voluntary agreement
for the exchange of services and
experience to obtain the mutual:
advantage of being able to offer
manufacturers, distributors, deal¬
ers, and consumers a uniform fi¬
nancing service over a wide trad¬
ing area for all types of consumer
■*
goods and various types of com¬
mercial equipment and machinery :
on
the
installment
repayment
plan.
TELEPHONE: 7826
•
I
through
Under such arrangements,
banks
•.
,
ESTABLISHED 1887
STREET, ST. LOUIS 1, MISSOURI
R
than
plan would operate similarly except that the distributor wouid
select the large banks with which
contracts would be made. ;
ing
;
through dis-
rather
systems,
A. G. EDWARDS & SONS
E
un¬
tributors
banks
Dealers
OFF
was
paper,
financing business to be
carried
on.
The first
syndicate
to be organized is headed by fpe
Bank of America, San Francisco,
and includes f>0 atate and national
Business Established 1874
Telephone*—Central 3350
Teletype—SL 62
consumers.
bank
ment sale
315 North Fourth Street
506 OLIVE
;
-
the credit pould be
handled by the large bank, thereby assuring the manufacturer .of
a
regional or national financing
service
for
his dealers.
Where
the
Mid-Western and Southern Securities
v
Underwriters —Distributors
the
created
spondents by furnishing informa¬
tion and advice upon the detailed
banks. These manufacturers wish" procedures involved in handling
New York Stock Exchange
ESTABLISHED
O
New
Stock
York
Members
Exchange
York Curb Exchange
-
.Chicago
>
Stock
/
'
Exchange
'
have
the
facilities of
the
group
available to their distrib¬
utors and dealers. The first step
'
in
the
program
was
a
aeries -Of
"clinics," conducted by h group of
America executives at
/
•
Bank "of
■
important cities, to acquaint banks
new to the business with the me¬
chanics of intallment financing.
SERVICE ON ST. LOUIS SECURITIES
A second syndicate is
.the "Nawhich
;
tional Sales Finance Plan"
★
will
Kins
Brennan,
&
CO.
Investment Securities
Members
New York Stock Exchange
St.
Louis
Stock Exchange
New York Curb
418
Chicago Stock Exchange
Commodity Exchange, Inc.
Exchange Associate
BROADWAY AND LOCUST ST.
—
6111
v.
Along with these plans for fa¬
cilitating the purchase by hanks of
both
wholesale and
retail
in¬
.
ST. .LOUIS 1, MO.
stallment
1
WALL STREET
NEW
YORK
S, N. Y.
15
WESTMINSTER ST.
PROVIDENCE 3, R. I.
EMMET J. BRENNAN
served
by the first syndicate) containing
perhaps 85% of the population.
Consumer .Installment Loans,
2, MISSOURI
CHESTNUT
\
of the territory not
Bank-Agent Plans for Expanding
OLIVE STREET.
ST. LOUIS
more
a large section of the
(around two-thirds or
cover
country
WALKER
.
manufacturers
made
St. Louis Stock Exchange
'
COMPLETE INFORMATION AND
IK.
«
reported that several major
have arranged to
It is
-
Chicago Board of Trade
G.
/
unwilling to purchase tfre
or
retail
local
a
;
credit
secure
paper
-0^
payments; financing with thousands of local
0s9
MEMBERS ST. LOUIS STOCK EXCHANGE
to.
by the dealers' sales to
able
ticipating
;
floor plan
installment
-coast
'
-
■
their communities
•
CbmpanirJ
;
'
•
.
I. M. SIMON & CO.
Taussig,
large number ,'of
a
;
CHICAGO
ne
...
.
distributors
.
/./V.--/''
•
dealing with
and
other
Stifel, Nicolaus & Company
;7I N CO RPO RAT E D
to
soihe
- on,
f
fore -shipment,;
retail outlets have
The buyer of an
STATE and MUNICIPAL SECURITIES
<
-payment
'
a similar prqbsumer, installment loans 46 bor¬
v
solution
is
rowers
generally, ..the plan for lem, > A
being v'dt*
states, co-operative ,ar¬ handling dealer installment paper ternpted lhrough the development
rangements nre, being developed, being, intended do cover fhat ..area, of correspondent bank "relationbetween bankers' associations ?and. of the market which cannot be Ships^/;--,Vauto
For example, : a /manufacturer.,,
dealers' associations, farm' reached easily, or at .:ajl» by direct
implement dealers' associations,.: cpn symer installment lending, j ! distributing his productio several
V
>
The
thousand
retail
dealers through v;,;
appeals used in the adver¬
appliance and furniture dealers'
several
tising
are
low-cost
fates,
.dozen
wholesale
associations, associations oL in¬
conr;
^branches i: J
surance agents,
and othen inter¬ venience in makingpayments ....at '1 might select a large.bank iin -eachJ'ested groups.
any of .the bank's offc'ices in the' of the trade areas handled by a
community, the value to the conr; branch and serving the. same re- sumer of establishing bark credit- gion.
Contracts would ,be made
Plans for Handling Installment
which
builds his standing in thp for each of these banks to puirSale
;
chase
the
wholesale -documents of V
community and may prpve of
With regard to the business ..of value at some time when he
the
dealers
in
its
area.
jThe
larke
<
needjs;
purchasing re tail
installment, to borrow, and the dignified, busi-' hanks
acquiring floor .plan credit | s
paper;
some
individual banks! hess-like basis upon which pur- • in this way from manufacturers
have been lining up dealers in. chases are
made.\;•xfa:.»■',-/- and di?tributors might offer their
In
vertisements
UNITED
continues
■! 1,
€, 1945
J. R.
KINSELLA
paper; programs are be¬
ing
promoted
throughout -fh®
country for Increasing bank con¬
sumer
installment loan business.
One of thase programs is
the
:
,
,
.r.
V~r;
i
•frrrT'^
y°Iume
•?. /
162
;i«ntomobiles .at retail.
ersa^Z^r^ buy *rom dealflnanrinS^
.T?4 saleoperating
crcdit' a"
unancing institutions
in
Vn8^,6 defuer accounts, that
if tlnig.,tI?e deaIers to sell
'A—'a;t
installment
paper:
,A bank-either
institution,' de¬
'them
few dealers for busi-
..
mintmK-Ur
^collecting
the
Pay-'
himself,
or sells
it to a
ments;
Sill
comPany, a bank, or
other J-ncefinancing agency. The pur¬
of the bank-agent plan is to
'Vs?iS
£!La direct consumer installment
frS >5rom u kank and pay cash
bs. Purchase.
'hfnt
bank
>
The insurance
cooperate with the
use
'j
inducing-buyers
to
'■
i
in
LewiSjMcDaniel
McDaniel Lewis & Co.
slightly
than
more:
of
dollars
retail
300
million
automobile
di¬
primarily made for the
purchase of cars. The bank-agent
plan s purpose is to increase this
rect Joans,
consumer
installment
loan
busi¬
at the expense
of the business
of purchasing retail automobile
paper, which has been largely in
ness
the
the
of
hands
sales; finance
Marx, L. Eugene
New York
Mason, Robert
FinanceLewis, Mohan Y*>
'
V
Lewis, Reuben A., Jr.' -Finance
Lewis, Robert J. ;
- "Estabrook & Co.
Bear, Stearns & Co. ^
Lewis, Salim L. fe.
Stern, Lauer & Co. Liebenfrost, Conrad H.
.
New York
New York
Milwaukee
Morris F. Fox & Co.
Lillis, Donald C.
Limber t, Lee M.
Linch, Dale F.
Lincoln, Mary R.
Bear, Stearns & Co.
'
7lBLyth&Co. C,.v:
Berwyn T. Moore & Co.
•:1
New York
New York
Louisville
F.S. Yantis&Co.
Chicago
Chicago
Chase National Bank
New York
Investment Bankers Assn.
/
<
Underwriters
New York
Corporation
Investment Bankers Assn.
Chicago
Loewi & Co.
Milwaukee
-
Longmire, John R. MiX I. M. Simon & Co. y
7 Rogers & Tracy Longstaff, Ralph S.-^
Loomis, John S. •: <- ^Illinois Company
/ Lord, Abbett & Co.
Lord, Andrew.
;
■
Indianapolis Bond and
Toronto
Wood, Gundy & Co.
Elkins, Morris & Co.
,
St. Louis
>
Chicago
t
Lucke, Frank L;"(
Ludin, Joseph v'; -i*;;
Hamlin & Lunt
Lunt, Samuel D.
^4:
Lyklema, Walter C. n A. C. Allyn & Co.
Dick
& Merle-Smith
Lynch, Lawrence J.
Lyons & Shafto ;
Lyons, Kevin T.-:-v
W. L. Lyons & Co.
"•Lyons, W, L.
.
/•
New York
New York
Buffalo
1
'•
Chicago
New York
Boston
Louisville
Mellon Securities
Dominick & Dominick
New York
Macfadden William S.
Piper, Jaffray &-Hopwood
Continental Illinois Bank:7
Minneapolis
^MacLaughlin, A. M.
Vieth, Duncan and Wood
Davenport
Main, Charles O.
*Mallory, Waldo W.
Ballmari & Main
Chicago
Marks, Laurence M.
Laurence M. Marks
Macferran, J. S.
-
""Denotes Mr. and
•
*
*
1
ft
XT
^
T7
1.
purchasing of retail in¬
paper on automobiles,
the sales finance companies have
furnished
not
only the
funds
needed for financing the sale but
also, through their insurance sub¬
sidiaries, the insurance required
on the automobiles.
..Banks gen¬
miums,, which have been
source
of
a
MUNICIPAL
7
retail
5
bank-agent
paper
77
INVESTMENT
paper
dealer..
from
automobile
the
unpaid balance and the insurance
premium.
Some local insurance
agent writes the insurance cover¬
age and gets the premium, and
thus is induced to urge his clients
to borrow from the bank and pay
cash instead of buying from the
automobile dealer on a regular
stallment sale contract.
In this
BANKERS
Members New York
Kansas City 6, Mo.
profit from the rent of monev,
(Continued on page 2756)
Members Chicago
VICTOR 3143
.,-'7
/
'
•
.
,
Bell System
Long Distance
7
-
York Curb Exchange
•
Louisville 2, Ky.
V" X-X*
v'7'>'4> -' '' /' "•
X 7;7-7'7.7
"
Stock Exchange
Stock Exchange
Hilliard Bldg. 7
419 W. Jefferson St.
Distributors
Underwriters
Teletype—LS 284
Union Phone
i
197 & Western
CORPORATE and MUNICIPAL
SECURITIES
x
7".7;:-'Active Markets In
ALL LOCAL
.
■;
Steffi Brothers
MEMBERS;
CHICAGO
& Go.
1009-15 Baltimore Ave.
OMAHA, NEBRASKA
7,
Private
REVENUE
wire to Wood,
X7.
&
BONDS
.
Walker & Co., N. Y.
STOCK EXCHANGE
KANSAS CITY 6, MO.
the
BRIDGE
7
SECURITIES
KENTUCKY MUNICIPALS
it is said, the bank gets its
262
T:0
covering the
4
Baltimore Avenue
Associate Members New
The bank makes a direct
/loan to the car buyer
way,
916
BELL TELE.—KC
plan,
however, the bank does not buy
the
'
the
Under
installment
.
Founded 1872
m
•
probably will not be in a position
to give generous rebates or bo¬
nuses
to automobile dealers out
of
the discount
received when
HILUARO
B.
J. J.
Prescatt Wright,Snider En,
banks, without the benefit of com¬
from them/
Asst. Manager
WOOD HANNAH,
GRAHAM, Manager
THOMAS
CORPORATION
Specializing in Unlisted Securities
very
X The
-
DEPARTMENT
PREFERRED STOCKS
income for the
companies.
finance
INVESTMENT
INVESTMENT DEPARTMENT
missions on insurance premiums
•
BLDG.
LOUISVILLE 2, KENTUCKY
Atlanta
BONDS
erally are not permitted to enjoy
commissions on insurance pre¬
,
KENTUCKY HOME LIFE
Mrs.
stallment
buying
1st FLOOR
New York
& Co.
In their
sales
INCORPORATED
Chicago
Clement A. Evans & Co.
CO.
BANKERS BOND
m
's.v,Vi
companies.
large
ov.-^
.
MacBain, Hugh D.-» Macdonald, Ranald H.
^
7<:: ■ Z<f :7
Minneapolis
Miller, Kenower & Co.
Detroit
Corporation Pittsburgh
MacArthur, Reginald
INDIANAPOLIS 6, IND.
129 EAST MARKET ST.
Chicago
New York
^
Corporation
Share
Philadelphia
/
Piper, Jaffray & Hopwood
:1 Laidlaw & Co.*
- >':;Y %
/ Dillon, Read & Co.
/
Loudon, Paul W.
and
Investment Dealers
-
Chicago
Shields & Co.
First Boston
,
New York
Liginger, J. W. D.
Linenr Johns,,
Linn, W. Scott 4
Linsley, Duncan R.
Litjtle, Alden H. .
^Loewi, J. Victor
.
v;.
(Continued on page 2756)
Chicago
Chicago
v.
Lincoln
First Trust Company
Chicago
Martin, Burns & Corbett
Atlanta
Milhouse, Martin & McKnight
New York
Salomon Bros. & Hutzler
Chicago
Mason, Moran & Co.
.
Chicago
Central Republic Co.
Lynchburg
Scott, Horner & Mason
Mr. and Mrs.,
♦Denotes
Philadelphia
Chicago
Chicago
Smith, Barney & Co.
Bacon, Whipple & Co.
Kebbon, MeCormick & Co.
>
Mason, Walter G
Greensboro
•
outstanding cov¬
ering the sale of automobiles. Of
this, the commercial banks held
only a little over 400 million dolbut
they had in addition
Chicago
Chicago
New York
& Curtis
Loftus, E.J.
stallment paper
Pittsburgh
Marshall, James Waller
Marshall, John C.
"'Martin, Bennett S.
*Martin, George L.
Martin, Wayne
Mason, Fred H.
Paine, Webber,Jackson
installment sale credit for financ-
lo^i4 '.I® end of the P®ak year m
♦L
km?6 V?Sna
tota*
°f almost
two billion
dollars
of retail
in¬
Markus, Norbert W.
Chicago
Washington
Bovenizer
W.
G.
Wood
G.
Orrin
Hall
3.
Cleveland
& Curtis
Lewis, David J.
Lofft, Hubert W^'
*uG
^ori inv°lved
at no cost to
the bank.
^v-:y ;7'777;
Edward
Paine; Webber, Jackson
7
installment loan credit instead Of
i**5i
!!!eiragent
aut°™°bile
purchases,,
and.the
is expected to do
New York
.
•
.
Nashville
;
New York
Kre**educate' the buyer to borrow Lineberry, Kenneth Wr
''it \'-?-
New York.
Montgomery
Higginson Corporation
First Cleveland Corporation i
Distributors Group, Inc.
Johnston, Lemon & Co.
V;
City National Bank
- 1
Y'f]
Kuhn, Loeb & Co.
Moore, Leonard & Lynch
<
<!I<emon, James H.
Leonard, A. T. 4 1 ;
Leonard, John M. •>
the
sales finance
companies or ^Lestrange, George E.
other competing institutions. Also,4 Levy, Herbert
^ installment sale contract
1
■>
-
Lee
y
with the dealer, who either holds
7 ;
"/ *
,
J. C. Bradford & Co.
be ?biised
iPeimosf.f°mmon
practice of
the automobile buyer has been to
*.
Sterne, Agee & Leach X '
New York Times
1' .7'
T
to splitpayits
charge
with its dealers,
selected,- choice risks.
V'
Shields & Co.
as
:
New York
;• i
Co. X 7.7X Chicago
Chicago
y Chicago Herald-American 4 ,4
.First Boston Corporation r |' V New
York.v^'.
:
Chicago
First Securities Company
y
ubder the'
dealer^instead of accepting onlyj
.
';)4
Harriman Ripley &
"kllvf1mJ,
preserve,";
"bonus," or
kickback
equal to that paid by
pose
y;
Labouissej^obh P. tX/X Lamar, Kingston & Labouisse New Orleans
New York 7
Ladd, Edward.H. 3rd ;' First Boston Corporation
Laemmel, William G. ;X Chemical Bank
4 -'
J New York
John
Nuveen
&
Co.
X
:.X',,.X X.X, Chicago
Laing, C. W.'
Union Planters Bank
.Memphis,.
Lancaster,'J. C:
Jli hnder ; pressure to take
Xi?
paper,
the poor as
well ?f ™me
the good,
in serving, the
777:
Chicago
XX
Kuhn, R..ParkerFirst Boston Corporation
hlS ?aper t0 the
business is lost to the
^ Furthermore, the bank, as a; ^egros, Emile A. Lfeggett, Marvin. C.--'
.
1934
1935-36
1936-37
,
"thP
'
CHRONICLE
Cleveland '
Ball, Burge & Kraus
Merrill Lynch, Pierce, /; ,777;
'i&ij'tFenner & Beane •'
dealer's
W*
gioss
„nNV
Buffalo
Trust Co,
Mfr's & Traders
•.
sourrA?F->. suddenly lose these
7"':7
«i *w
Chicago
Eastman Dillon & Co.
-
•
v
Lang, Walter E;7 4k i
LarsohfHugo H. - c~{%
insta
^ method,1 Lanston, Aubrey G.
installment, sale credit
b^eJ is the
Cus- LaRocca; Harry B. 7-,tomer, not the bank's. If he buys Lawshe,- Emmett
bis "ext car- frprh a dealer who: Leach, Edmund C.
Leathers, Harry
"bank
h
•
Ledyard, Q. Ri
bank
Lee, James J. /
itLlkfCC)m?e
wprwtttN
(Continued from page 2753)
Kramer, Alvin F.
Krans, John G. ;4,u
Kraus, Harry G.
Kreutzer, Knox
in?»-C0'Tu"ity c"mpete in ' so-
a
r»
— -
IBA PAST PRESIDENTS
to
pending,on
-t
In Attendance at IBA Meeting
•
X»tS essentiaHy •-a'move¬
nt?-th* ^ c°nsumer§ to substi"credit for fG f°* lnstallment loan
^ ^installment sale credit,
^utomAt?^ lrlthe distribution of
is
<r;","
(THE COMMERCIAL & FINANCIAL
Number 4444
u?ank"^Th^ autorn?biIe finance
meni
'
Telephone, Telegraph or Write
Us
CHRONICLE
THE COMMERCIAL & FINANCIAL
Thursday, December 6, 1945
Commerical Bank Installment Credit Plans
(Continued from page 2755)
Matlack, Jordan
*Matheny, R. C. O.
Matthews, Robert H.
A. G. Edwards & Sons
*Maxwell, Frank O.
Maxwell, John M.
McAllister, H. L.
McCabe, William E.
McCague, R. H.
McCarthy, Clarence A.
•"McCrary, Robert H.
McCloud, James F.
McClure, Nathan D.,
*McCormick, D. Dean
McDonald, C. B.
McDougal, A. L.,Jr.
McEwan, George S.
:
McFarland, D. E.
.
;
St. Louis
the dealer has his profit from the
the
sale of his merchandise.
be to the advantage of many mer¬
The
Chicago
profit, however,
large as it would
may
Pittsburgh
stallment-contract and either held
'
Des Moines
be
if he
as
made the sale
on
an
in¬
the paper to maturity — assum¬
ing that he had or could borrow
the necessary funds—or sold it to
may
forced to leave the fi¬
are
nancing of installment purchases
to financial specialists, the mer¬
managerial energies
the
Chicago
Chicago
which
would grant him a commission or
they are most skilled in perform¬
Cleveland
bonus for
ing.
Chicago
Chicago
Minneapolis
|ng the
Chicago
Chicago
LI-_
financial
services
the deal.
in prepay
On Sept. 30, 1941, at the
peak of consumer install¬
credit,
sellers held
retailers and other
of all retail in¬
37%
stallment
paper
holdings
of
/
outstanding; the
automobile dealers
million
277
to
or
who
can
secure.
prefer
rates,
dollars.
to
them
hold
low
at
their
own
installment paper, upon
SECURITIES
which the
earnings may be around 12% or
more
per annum, to have cus¬
tomers make their periodic pay¬
ments at the store where
they may
merchandise,
be shown additional
Corporate and Municipal
and
to
handle
fol¬
collection
the
low-up themselves when this
volves
reselling
collecting job.
<.
On
a
the
other
well
as
of the
in¬
as
a
The
the
argu¬
widespread
consumer
install¬
plan
bank-agent
first
got
way in Chicago, St.. Louis,
Sari-Francisco, and other large
cities and then began to receive
under
state-wide and national promotion
of the leading insurance
companies; and by state and na¬
by
some
insurance
agents.
;
It is held that most
car
buyers know little, if any¬
thing, about the terms or rates of
their finance and insurance
tracts, and
the
and
banks
agents to educate
to- persuade
and
them
con¬
it is Up to the
that
them
adopt new habits of borrowing
from the bank in place of buying
on- installment
sales
contracts
to
they acquire the car, the
and
the
insurance
financing,
wrapped
package,
in
up
one
convenient
;
,
W. D. GRADISON 8 CO
Members'. New York Stock Exchange
New York Curb Associate
/_ *
to
argument.
amount
locally
off money
circulatingthat, might otherwise go ;
town"; would
of
each
to
be
urge
establish its own
companies,
its
own
automobile
and
appliance
factories,
foundries,
and
other f
city
home
to
insurance
subsidiary industries, and to have
its citizens buy only from these
locally owned concerns.
:
| :
Mechanics of the Bank-Agent
'V
Plan
In some com¬
plan.
the
of
plan will "keep a sizable
munities,-; banks and agents have
raised funds for joint advertising
of the
extension
that the
tional associations of bankers and
CLEVELAND
"
The
such
out
/;
.
where
hand,
ment is made that the
invasion
on
and consummating
papers
pre-war
ment
institution
his
Apparently
many
sellers,:' who
have plenty of funds of their own
CINCINNATI
chants
credit,
consumer
It is asserted that if mer-*
a
./•/
amounted
OHIO
of
cost
chants,
purchase, display, and sell¬
ing Of goods, which is the task
Omaha
Northern Trust Co.
dealer's
not be
.
t
Charlotte /;
Denver :-//
Chicago
Kirkpatrick-Pettis Co.
Harriman Ripley & Co.
Kebbon, McCormick & Co
McDonald & Co.
McDougal and Condon
Paul H. Davis & Co.;
Kalman & Co.
- >
/
J..-/.■
Angeles
(Continued on page 2757)
.
ical
by most of the
Los
♦Denotes.Mr, and Mrs., 7/L
1;;
trate all their
credit field
commercial banks in the country,
with
the
probable" reduction in
Maxwell, Marshall & Co.
Northern Trust Co.
R. S. Dickson & Co.
'I ,1
McCabe, Hanifen & Co. /
Union National Bank
Sills, Minton & Co.
McCrary, Dearth & Co.
Carl McGlone & Co,
McGlone. Carl
chants will be enabled to concen¬
motivation is supplied by <
appeals as lowest rates ob¬
tainable, establish bank credit for
yourself, v retain your insurance
with your, local agent who will.
better look after your interests as
to coverage represented and fair
and speedy. settlement of claims,/
and "money spent at home benefits home town people." The log¬
ment
G. H. Walker & Co.
.
..
McGrew, Edward D.
;
Chicago
Springfield
Investment Bankers Assn.
(Continued from page 2755) ■
insurance agent gets his profit
from the sale of the insurance, arid
In
cities
some
decided
banks
the
have
uniform credit
upon
ff
ap-
plication blanks, uniform chattel
mortgages and notes, and other
forms
which
insurance
a
are
furnished to the
The insurance (
agents.
is called upon to
agent
bit
work
of
do quite
he gets
before
his
for
the insurance involved. V He interviews the pros- w
pective car buyer—who has al¬
ready gone to the dealer, ascer- - •
tained the price of the new car,
its serial number, and the trade-in
allowance before taking up the
matter with the agent—fills out
the credit application form, in¬
cluding the serial number and f
description of the new car, has the ;
buyer sign the form in ink, and
then
telephones the facts con¬
tained in the application to the
bank selected by him or the buy- /
premium
Cincinnati Stock Exchange
If the
the
face amount and the name of
Institutions
//-
together with a de-;
in ink,
bank
"
*
chattel mort-!
filling in the;
sign the note and
gage in duplicate,
Brokerage Service
for Individuals * Banks
bank, after credit investi-r
gation, calls back its approval of
the deal, the agent has the buyer,
Investment
:
scription of the car on the chat-;
INVESTMENT BANKERS
tel mortgage.
LISTED and UNLISTED SECURITIES
Established 1903
2, Ohio
./;•/ Dixie Terminal Building, Cincinnati
NEW
£
/MEMBERS OF.
YORK
NEW
Tel. Main 4884
i
EXCHANGE
CURB
EXCHANGE-
-
.
his assured,
to the *
bank or he may take the papers >
to the bank himself, or handle the
A
papers,
by special, delivery mailt
is for the agent to se-<
matter
■/
STOCK
YORK
Tele. CI 68-CI 274
... >
the executed
with
Suite 405-412
-
,
The agent may send
variant
the insurance
cure
then give
application and
:
the prospective car buy- *
CHICAGO
BOARD
7
CHICAGO
STOCK
"
EXCHANGE
the
STOCK
EXCHANGE
for credit is taken and the requi-;
CINCINNATI
OF
TRADE
er
I. T, Bartlett
—
John T. Heme
Resident Partner, N. Y.
Mgr. Bond Dept., N. Y.
—
Walter, Woody & Heimerdinger
ii.y
,
MUNICIPAL BONDS •
I
403 DIXIE TERMINAL
;
;
;
v/
,
CINCINNATI 2
WE SPECIALIZE IN
are
papers
after
completed
credit
investigation
ance.
The
bank
and
*•
».
accept-:
issues
check
a
',
payable to the dealer for the un-»
paid balance and a check to the
agent for the premium.
y
previously stated, the plan
the payment;
of commissions by the banks to:
insurance agents for their services
in channeling loans to the banks..:
The agent has the incentive of 7
getting insurance business which»
otherwise would be placed by the
dealer (or by a bank or other fi¬
nancial
institution > having trust ;•
As
does
/
the .application
where
bank
site
NEW YORK, N. Y
introduction card to take to
an
not. anticipate
which include the selling
addition, the
the cat;
buyer public liability, property
damage, and medical payment in-/
surance
along with the required
powers,
of
insurance):.! In
agent may be able to sell
;■ 7
KENTUCKY
fire,
MUNICIPAL BONDS
thfeft,!: comprehensive,
collision; insurance.
Municipal: Bonds
Corporation Bonds
.
.•.!
:
:
and
'
'
1
it is reported that/;
hanks-reciprocate for the
are shunted in their
direction by • ordering insurance:
from
the cooperating agents on
Moreover,
many
loans which
-^
•*•
*
•
Unlisted Stocks
•.'••/-
-:■
'//*>.;>.
"agent free" loans. That is to say, >
consumers
advertising
bank
THE W. C. THORNBURGH CO
18 East Fourth Street
CINCINNATI
-
instead
of
first
CAREW
"Agent free"
TOWER
loans
are
those; in
which the borrower expresses no.
2
directly to the ;
may go
borrow
contacting; some insurance agent. <
Teletype CI 260
f
to
influenced by a bank's
PArkway 6820
CINCINNATI 2, OHIO
!
L. D.
107
Teletype CI 366
Branch Offices:
Telephoned* 6422
Cleveland—Akron
preference for any particular in-.
surance: company
cases
or
agent.
*
In
where the borrower wishes
to retain
his insurance with a
giv-; -i-
Volume
en
vances,
agent, the bank
or
company
renewal as desired. ¥.
makes the
generally provide free
;,v. Banks
folders, blotters, inserts, and other
promotional material advertising
the bank-agent plan for agents to
distribute to their clients under
agent's own imprint.
Banks
cooperating with insurance agents
stress
in
their
advertising the
fact that in borrowing from the
the
for
of a car
operation in¬
the purchase
banks for
or
other
some
volving insurance, the borrowers
will" not be required to change
their insurance agents,
i
one of the bones
of contention between agents and
B- It is said that
banks
banks
that
been
has
a
places have "coerced" in¬
surance
by borrowers—on their
their motor cars, and
risks—to agents favored
on
other
on
by the banks. "With the attitude
of the A. B. A. and theif anxiety
banks can
for loan business, such
'
be
over
won
at least to cease co¬
insurance when making
loans," the editor of an insurance
periodical comments, "in view of
the fact that agents generally, can
be excellent sources of applica¬
tion for small loans." He further
ercing
not
justified, when buying retail in¬
stallment paper from a dealer, in
giving
kickbacks,
rebates,
bonuses, or commissions to the
dealer
bankers
that
suggests
when
are
given
are
none
to
bringing into the
bank the same type and amount
of
financing
business,; but he
the
for
agent
banker can
alert
thinks that the
keep most insurance agents
on
"agent free" loans,
Insurance agents seem
7•
;
happy
in
ested
bank-
the
applying
V'fv
to be in-
to automobile
other types, in¬
agent plan not only
loans but to many
Si cluding
ad¬
FHA,
mortgages,
,
loans on furniture, several
types of business loans, and per¬
sonal 'loans',' For example, insur¬
frequently find that
to selling
casualty
agents
ance
obstacle
one
vertising
and
lets
using letters
advertising leaf¬
programs
of
series
a
"credit
secure
approval
from
the
premiums on insurance.
jury, property damage, and medi¬
cal payments insurance in addi¬
tion to the required coverage of
necessary
prospect to
bank, it is argued, the insur¬
agent can finance a policy
the
ance
and, in addition, show the client a
of credit by which he can
source
the payment, of his other
debts.
';y;
».• /. .//■■■/'. <:
•: / /'/''; ■.
•In
some
cases,
banks furnish
budget
small loan applica¬
to
the
insurance
their regular
blanks
agents who let it be known that
they are the ones to see when a
person
needs to borrow money.
The activities of insurance agents
placing. loans and
securing
fori, banks has raised the
in
business
question as to whether agents may
be required to take out small loan
broker's licenses or be subjected
provisions.
other licensing
to
the
present stage of its development
is simply an attempt to meet the
The
plan
bank-agent
competition
who
dealer
the
of
automobile
financing
the
offers
at
protection with the
sale of the car. The task of. the
banks and the insurance agents
is to convince prospects that they
can save money by
dealing with
a local bank and get better insur¬
ance
protection and service by
dealing directly with local insur¬
and insurance
ance
agencies,
'
a
Springfield Group of Fire
Insurance
Companies has
been
circularizing
its
agents
urging
The
them- to
call
immediately
V
banks for the customers and pros¬
pects on their mailing lists, and to
impress upon their clients the
necessity of carrying bodily in-
By introducing such a
2757:
prepared'by the companies, to
policies is the fact that the pros¬
pect is already in-debt and has
no
source / of
cash to - pay the
tion
in
many
homes,
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4444
162
McHenry, Herbert T.
McKie, Stanley G.
(Continued from page 2756)
Salomon Bros. & Hutzler
Weil, Roth & Irving
Chicago
Cincinnati
McLaren, Harris B.
McDonald & Co.
Cleveland
McLaughlin, Edw. M.,
Paine, Webber, Jackson
New York
'
McNair, Frank /
McNair, Howard S. •
fire,
theft, comprehensive, and McNulty, James M.
collision insurance.
*Mead, Robert G. •
■
The State Farm Mutual Autor
*Mead, W. Carroll
mobile Insurance Company, said
Means, J. W.
>
Mee, William R.
to
be the world's largest auto¬
mobile insurance company, with
Meeks, G. Gordon
over
a
million
cars
insured, Mericka, William J.
'•"Merrill, Charles B.
launched a bank-agent program
in 1939.
Iii 1941, its agents, co¬ Metzner, Russell H.
operating :1 with
2,500 •' banks, Meyers, Henry P.
brought more than 91,000 policy Meyer, Julian L.
'"Meyer, Maurice, Jr.
holders to their local banks for
car financing.
The company's na¬ Miehls, Don G.
Mikesell, Robert S.
tional advertising, and the adver¬
tising material sent out by its Miller, Galen
<
agents, claims that its Bank Plan Miller, Lewis
saves
money in
three/ways:* on Miller, Sanford C.
Mills, Andrew S.
v
the purchase price of the auto¬
mobile, by payipg cash; on the Minot, James J.
financing, by low bank rates; on
insurance, by rates which are Molander, Winston L.
usually lower than the generally Moore, Berwyn T.
Moore, William
accepted Board rates.
*Moreland, J. Marvin
The company has been sending
Moroney, Robert E.
copies of a 28-page illustrated
Morris, George L. '/v/
booklet of large format entitled
Morris, Pat G.
"New
Profit
Opportunities, for
Morrison, James C.
& Curtis
'•'•/.•</■
Harris Trust & Savings Bank
Chicago
Courts & Co.
Atlanta
,
Ames, Emerich & Co.
Chicagq"
Stone & Webster and Blodget Chicago
Baltimore
Mead, Irvine & Co. \ /
Trust Company of Georgia
/
Cruttenden & Co.
Atlanta
Gordon Meeks & Co.
Chicago
Memphis
Wm. J. Mericka & Co.
Cleveland
Merrill, Turben & Co.
Cleveland
Central National Bank
Cleveland
Salomon Bros. & Hutzler
& Co.
Chicago
Chicago
Hirsch & Co.
New York
Uolaman, Sachs
William Blair & Co.
Chicago
.\ :r Toledo
Stranahan, Harris & Co.
Cleveland
Hayden, Miller & Co.
.
.
Chicago - :
Chicago '.,iy
First National Bank
A. C.
Allyn & Co. ' /
Newhard, Cook & Co.
.
.'
St. Louis ■' v.'
for
range
a
.
Banks" to bankers in the 40 states
in
which it
bankers
Morse, Charles L., Jr.
Morton, Fred G.
'
Morton,Howard C. * $
Morton, William H. -v:
operates, urging the
promote the bank-
to
,
agent plan. The slogan, "see your
local
banker
before you
finance
'& Curtis
Northwestern National Bank
Minneapolis
•
Berwyn T. Moore & Co.
McDonald-Moore & Co.
Louisville
I
Detroit
Mosle & Mereland
Galveston
Moroney, Beissner & Co.
Hornblower & Weeks:.
v
;
Corporation
Hemphill, Noyes & Co.
New York
Milwaukee
Chase National Bank
;V
Mr. and Mrs.
" New York
'
■>
HAYDEN, MILLER & CO.
_
Established 1903
./.;/.-v/.,
:
INVESTMENT SECURITIES
INVESTMENT
Union Commerce Building
LAND,/OH I Cl¬
SECURITIES
.**}'
-
'
•
..." ;!
V
::
Exchange
Member Cleveland Stock
'
_
z. <;j ■
eveland Stock Exchange
v.
a.::///'*::■■■'}
COMMERCE BUILDING
UNION
CLEVELAND
14,
OHIO
Underwriters and Distributors
\a
v
Underwriters
BONDS
—
We have
Dealers
-
Distributors
State, Municipal
Municipal, Corporate
Government,
N
-
a
STOCKS
—
continuing interest in:
;
I
\
and Corporate
Securities
—
JOSEPH & FEISS
LEECE-NEVILLE
'/
-
OHIO FORGE & MACHINE
:
•/
OTIS
TAPPAN STOVE
.
TROXEL MFG.
VALLEY MOULD & IRON
CO.
&
(Incorporated)
,
UPSON WALTON
ESTABLISHED
1899
CLEVELAND
THE FIRST CLEVELAND CORP.
NATIONAL CITY BANK
•'
;
"
V
BUILDING
CLEVELAND 14
V
NEW YORK
'
..
v-V.
CINCINNATI
Telephone
Prospect 1571
•
/'>'•
Bell
;
Teletype
System CV 443
.»'.V-:.T..
//'•.
CHICAGO
TOLEDO
' j
Chicago
(Continued on page 2758)
(Continued on page 2758)
|r:
Milwaukee Company
McMaster Hutchinson & Co.
r
♦Denotes
j]
Philadelphia
Chicago
j.'
New York
; '
Northern Trust Co."
First Boston
I
-
Houston
cooperative program,
McDonald &. Company
•
:
upon
ad¬
*
Boston
Paine, Webber, Jackson
.
their local bank or banks and ar¬
to start their educational and
"
DENVER
••
:
^
r
!
T!;"
THE COMMERCIAL & FINANCIAL CHRONICLE
2758
In Attendance at IBA
Meeting
(Continued from page 2757)
*
Mosle & Moreland
Mosle, J. Ludwig
Mudge, Louis G.
•
•
Galveston
v
•
Corporation
Chicago
,
Mullaney, Ross & Co.
Mullaney, Paul L.
' Garrett-Bromfield & Co.
Mullen, John J.
A. E. Masten & Co. •
Mullins, Frederick P,
Maynard H. Murch & Co.
Murch, Maynard H.
;;
Ohio
Company
Murphy, Dennis E.
: ,VReynolds & Co. ,r
' T
Murphy, Johfl A.
::
National Bank
1
•
Murray, Ray H.
Chicago
First Boston
r
v
Denver
,
Naumburg, Carl T.
Nay, Leston B.
Nelson, Arthur E/.,\
Nelson, Edward
"
Nelson, Gus
Nelson, Harry J.
Nelson, William A.
Newborg, Leonard D.$
Newhard, Chapin S.
Newlin, E. Mortimer
Newton, Arthur M.
Nichols, Donald E.
Nicolaus, Louis J.
*Noel, Richard C.
♦Denotes
'
Stern, Lauer & Co. *
Pittsburgh
Cleveland
Columbus
j
•
Philadelphia
Detroit
•
.
York
Chicago
Spokane
f
Arthur E. Nelson & Co.
Kidder, Peabody & .Co.
Pitman & Co,
j
First Securities Co.
New York v
;
San Antonio
Chicago
% Chicago
Co.' 4
Hallgarten & Co.
New York
Newhard, Cook & Co.
St. Louis
H. M.
Byllesby & Co.
Hayden, Miller & Co.
Philadelphia
Ames, Emerich & Co.
Chicago
Stifel, Nicolaus & Co.
Van Alstyne, Noel & Co.
St. Louis
Cleveland
New York
Mr. and Mrs.
Oates, Jeannette
O'Brien, John J, 3rd
O'Brien, Michael J.
Investment Securities
Chicago.
Chicago* v •;&
Chicago;
:
Mabon&Co.'
New York
Nusloehj Baudean & Smith
New Orleans
JohnNuveen & Co.
Chicago
E. H.
United Press
s
^
1
•
Commercial Bank
Credit Plans.
Chicago
(Continued from page 2757)
f
your next car," is
emphasized in t;::
the company's advertising in na- :
tional magazines, ■ the mailing of ■?
enclosures
to
policy-holders
byA
the company and its ..agents, the •
publicity "releases' by the local f:
;
'
v
Chicago ;
Chicago
1
Paine, Webber, Jackson
and the free mat' service :
advertising: material
fur-;
agents,
and
& Curtis
Ochs, Louis W.
Olderman,. Russell J.
Olson, Ray
Osgood, Roy C.
Ostrander, Lee H.
Otis, C. Barron
Dempsey-Tegeler & Co.
Field, Richards & Co.; ■ ^
Stranahan, Harris & Co.
Otis, J. Sanford
Ottens, Jonas H.
Owen, I. D.
Owen, Ralph
Oxley, A, E. C.
Central Republic Co.
Salomon Bros. & Hutzler
St. Louis
nished
V
banks.
1945, the National Asso- y
Agents
started mailing to property and S
casualty
insurance
a gencies
throughout the country a new
Bank and Agent Auto Plan man¬
ual to aid the agents in fostering
ciation
Chicago
Chicago
Chicago
.
V
to
In July
Cleveland
First National Bank
William Blair & Co.
American Banker
New York
Chicago
New York
of:? Insurance
Allison-Williams Co.
Minneapolis
insurance
Equitable Securities Corp.
Dominion Securities Corp.
Nashville
cooperation with banks. The man¬
New York
ual
Park-Shaughnessey & Co.
St. Paul
business
ties
in
-
Parker; William A.
Parsons, James
Parsons, Robert H.
Parsly, E. G.
Partridge, John F.
Parvih, William F.
Patton, Francis F.
Payne, Albert J. '
'"Payne, Carr
Pearsall, Gilbert B.
Peck, E. A.
Pelikan, Milesr
Perrigo, Charles R.
♦Denotes
plan
Continental Bank & Trust Co. New York
Glore, Forgan & Co.
Kay, Richards & Co.
Parker Corporation
:
.
which
mittee
association.
Herald-Tribune
New York
Pacif ic
Los Angeles
New York
Company
J. G: White & Co.
Welsh-Davis & Co.
Chicago
Roe & Co.
San Antonio
A. G. Becker & Co.
Chicago
John J. O'Brien & Co.
New York
Cumberland Securities Corp.
Van. Alstyne, Noel & Co.
Nashville
Chicago
John.Nuveen& Co.
Chicago
Chicago
page
on
by
a
insurance
com¬
agents*
J
I
circulars, blotters, letterheads,
on
calling
cards,
adver¬
newspaper
tising, window and counter
dis^|
pla.ys, and other forms of printed
promotion. By this means, local
;
y
insurance
agents and
banks
]
can
tie their advertising together for
the promotion of the plan.
;
,
It is reported that many auto¬
owners whose
cars
have
mobile
been
Mr. and Mrs.
(Continued
the
;
financing,
The Association has adopted
ant!;;
official trade-mark insigne to use
New York
W. C. Gibson & Co.
of
the
the direct, loan
reviewed
was
Chicago
v
on
in
with
automobile
Pittsburgh
Boston
Hornblower & Weeks
of
volume
closely
A. B. A. manual
Park> Charles R;
Parker, Charles S., Jr.
Parker, E. Cummings
■
Cleveland
Chicago
j
.
..
Milwaukee
.
John J. O'Brien & Co. '
*Parker, Nathan K.
Merrill, Turben & Co
Graham, Parsons & Co. .v,wk::
Stifel, Nicolaus & Co.*, ,,v
Rollins &.Sons
;
;
Wisconsin Company •;
Fahey, Clark & Co.
Illinois Company
t
-
i
.New
;
First Securities Co.'
Bear, Stearns &
•
Noll, Gerhard B.
Nongard, Richard C. t
Nordberg, H. Gerald
North, Ludlow F.
Norton, John F.
*Noyes, George F.
Nugent, Joseph C. *
Nusloch, George H.^i
'!,Nuveen, John, Jr. ;.■
Thursday, December 5, 1945
paid for
are
f-
carrying
now
their insurance with local agents,
instead of renewing the insur¬
2759
placed on the car at the time
sale, and the agents not only ;
hope to retain this business but to V
add to it as buyers of motor cars
again become numerous. The In¬
surance
Advertising
Conference
ance
of
Union Commerce
Building
OHIO
CLEVELAND 14
STATE
has
f
*»
Teletype CV 283
are instructing their field
personnel to Work with i local
agent groups in the organization
'
f>"
V-fjV
•"{
v
ft*'
^
v-
of local
:
-'y-:-"5.:»;■
=A'l;:.icJ:-''v
Stiver & Co.
Terminal
CLEVELAND
Tower
programs.
;
v
V
V
,
Other Plans for Expanding
•'
V'
Consumer Installment Loans
Ginther & Company
In
CLEVELAND
14,
addition -to
the
bank-agent
plan, commercial banks are devel¬
oping other programs to increase
the volume of their consumer in-1
1138 UNION COMMERCE BUILDING
13, OHIO
clearing house'
a
officials
BONDS
PRospect4500
established
for all insurance companies' pro¬
motional material, and company
AND MUNICIPAL
OHIO
loan
stallment
have
MEMBER CLEVELAND STOCK EXCHANGE
business.
combined
the
Some
"five
ceijt
•
checking account," a special type
of checking account under whichno minimum balance is required
and
Cuyahoga County Suburban Municipal Bonds
with
and Ohio Unlisted Securities
uniform charge of five cents
a
made
is
for
each
check
drawn,
limited personal loan fea¬
a
ture for those who feel that they
require
occasional,
"emergency credit."
small *,
may
Joseph & Co., Inc
Some
banks
.
.
>
"'
have
organized
purchase clubs, based
savings or
upon the well-known
Chrismas v
help consumers to
save up the amounts needed for
down payments on new automo¬
biles, household appliances, andr
other durables as they come into
Club idea, to
Investment Securities
Wm. J. Mericka
6-
Co
the market.
members
who
payments
the
are expected to finance
unpaid balances by securing,
direct
from
Members Cleveland Stock
Club
have saved up the necessary down
DAYTON
CLEVELAND
Exchange
are
consumer
the
Club
coupon
sheets
numbered
used
installment loaris
banks.
furnished
of
depositors
books, the
which
are
in
place of deposit tickets,
thereby eliminating the making f
of entries in bank
preparation
Offering
service
an
in
experienced
Ohio
trading and distributing
Corporation anci
General
books and
the
duplicate deposit
tickets, and consequently simpli-'
fying and speeding up the han- r
dling of club deposits.
GILLIS, RUSSELL 8 CO
Market
of
In connection with these
Municipal Bonds, Stocks and Land Trust Certificates
plans, '
the bank often sets up in its lobby
'
eitner a
pictoridl or an actual dis¬
play of household appliances, in¬
Trading Markets
novations
and
ables.
Union Commerce Building
29 Broadway
CLEVELAND 14
NEW YORK 6
Telephone MAin 8500
WHitehaiJ 4-3640
j
Private
Wire to
New
household
Some
and
banks
dur¬
have
con¬
ducted
house-to-house
surveys
in
their
structure
other
or
mail
communities
id
ascertain
Teletype
Long Distance
CV 565
Direct
in
equipment,
:
York
CLEVELAND
14, OHIO
V
500
•
V
sumers'
capital
what; kind
of
con¬
durables expenditures or- *
improvements, the
re-':
spondents
pr.''
nf
.are
intending to make,
h°
solicited savings
accounts,
tif";''
or
offering
they have
purchase club
to
consider
THE COMMERCIAL St FINANCIAL CHRONICLE
Number 4444
Volume ?!62
lending what the customer needs
over
and
above
the
will
have
saved
by
the
: d'
"
desires to buy.
amount
he
time
he
IBA
Meeting
PAST PRESIDENTS
1937-38
1938-39
1930-40-41
(Continued from page 2758)
.
advertising- "is
>d:,vDirect mail
In Attendance at IBA
be¬
New
York
Pferrin, Myles D.
•!>: Salomon Bros. & Hutzler
Peters,.Writer & Christensen Denver
Pieters; Gerald P; fd;
*
St.
Louis
Eckhardt-Petersen & Co.
^Petersen Joseph; G.
•"i•
Illinois Company
Chicago
Petersen, Reno H.:;
New York dd*
Equitable Securities Corp.
Pieterson, E. Norman
dNew York
Phelps, Fenn & Co..
'■^Phelps, Augustus W.
St. Paul d; ;
Caldwell-Phillips
Co.
Phillips, GUybert M. d
•Dallas
:
Rauscher, Pierce & Co.
Pierce, Charles C.
': C. F. Childs & Co.
d: V;. Chicago
Plckard, A, G.
Denver
d
Pleasants; Aaron Wv >International Trust Cod
Julien Collins & Co.
{/, v Chicago dddd.-'
Podesta, Robert Al
,
ing, increasingly; used to stimulate
desire'"
fdtj consumers'
durables
home ' improvements
and
,r
by; ;the
enclosure of illustrated pamphlets
promoting the purchase club .idea,
and'to present various. aspects of
the
consumer
installment .loan
•:
..
-
services offered. ~ In some cities,
banks have run: cooperative ad-
:
•
veytising campaigns in: the news¬
•.
on the. theme,("For a persdtlal loan, go to a bank first."1* >.
A relatively new field for the
papers
-
of
expansion
ment loans is
install¬
consumer
being opened by the
v^ahgle < plan. vForv;
Blue
installment
sumer
many
made
have
lenders
years
con¬
for the
loans
purpose of paying past-due bill's
for medical and dental services,
but
the
plan
new
for
arranges
cash
payment. to the doctor- or
dentist at the time the service is
performed.
The
Blue ,: Triangle
plan orginated in Massachusetts
iii * 1944 as- a. project based upon
three
of study by the concredit, commission of the
years
sufrier
.
,
Bankers'
Massachusetts
;
tio'n assisted by
Associa-
plan is fully endorsed by the so¬
cieties, whieh have taken an ac-*
ttoCTnterest in promoting it.
|t is said- that a rhajority of the
people of Massachusetts have not
yet taken* advantage of the Blue
plan,, a pre-payment plan
for hospitalization, and the Blue
Shield plan* a pre-paymenf'.sysCross
•
?
d tern
,
medical
for
Triangle
;
;
plan
•
'% Mackubin, Legg & Co.
Pbhlhaus, Walter C.
Ppntius, Miller
F. Eberstadt & Co.
Hd: i:
.'
-
;■
^
Pope, AllanM.
V-*'
Popper, Elvin K.
Porter, Irvin L.
Pbstlethwaite; J. R.
vv
First Boston Corporation
I. M. Simon & Co.
d
;> '
Potter, Edward, Jr.
Commerce Union Bank
-
.
Baltimore
New York dl
•
New York ddd
>>:'
•
St. Louis
'
Power, John F./
Powers, Lester
-
d
•.
*Pratt, H. P.
Prenosil, Stanley W.
Chicago
Brush, Slocum & Co. d
Eastman, Dillon & Co.
Dominick & Dominick
-
g
First National Bank
•
'"'
PHester, H. C.
^
PHtchard, Harry N.
>
E. F. Connely
New York
E.
Frothingham
War Finance
Division,
Washington-
Reed, Stuart R.
Kansas City
New York
d-d
Reid, Frank B.
Maynard H. Murch & Co.
Weeden & Co.
*Reily, John M.
Reinholdt, Julius W., Jr. Reinholdt& Gardner
Discount Corporation
Repp, Herbert N.
Union Trust Co.
*Reuter, F. Brian
*Rex, William M.
Clark, Dodge & Co.
Com'l & FinanciaLChronicle
Reynolds, Albert
First Nat'l Bank & Trust Co.
Rhoads, Philip J.
Cleveland
*Rice, Irving J.
Richards, Arch E.
Irving J. Rice & Co.
L. F. Rothschild & Co.
St. Paul
Chicago
Richardson, D. T.
Lovett Abercrombie & Co.
Houston
Paine, Webber, Jackson
& Curtis
d/
;.'dd(;
/> Treasury
Baltimore
Davenport
Chicago
Seattle-First National Bank
Seattle
Purdham, Plummer P.
Burns, Potter & Co.
Omaha
Quail, John J.
Quigg", James F.'
Quail & Co.„
Paine, Webber, Jackson
St. Paul
:
d
I1 '"'v
& Curtis
Chicago
.
.
Harold E. Wood & Co.
Quist, LebL.
(.
F.
Witter
Seattle
0 Kebbon, McCormick & Co.
Ralph, Henry A. J.
Randall, Ralph G.
Rauscher, John H.
Redman, W. Guy "
Redwood, John, Jr.
C.
Co.
fM Priester & Co.
Ptosser, Malcolm S.
Jean
H. P. Pratt &
d
Davenport
Bank of America
New York
Mason, Moran & Co-.
Rauscher, Pierce & Co.
A. G. Edwards & Sons d
Dallas
Baker, Watts & Co,,
Baltimore
dt
Chicago
S't. Louis
■
*
*Denotes Mr. and Mrs.
Denotes
;
A. C.
Allyn & Co.
New York
Pittsburgh
New York
Chicago
Chicago
Graham, Parsons & Co.
Boston
Sidlo, Simons, Roberts & Co.
Fidelity Union Trust Co.
Schwabacher & Co.
Newark
Denver
on
the part of
BROKERS
iji
(Continued on page 2760)
DEALERS
•
health;
-A
for
patient
any
MUNICIPAL BONDS
make apnlicttlan
can
Blue Triangle loan
a
through
participating doctor or derr'irt
has been provided with the
i'v
who
-d
application blank is filled out andthe facts telephoned to the bank.
The
required health service is
completed* and if the, application
after investigation is approved by
the bank,, the patient signs the
note form, which the doctor or
Gurtiss, Housb(& Compahy
!|
I
|
-
'
needed
various
forms.
d
credit
A
>
d
k d MEMBERS
\ *
New York Stock Exchange
New York Curb
EXCLUSIVELY
dg
(Associate)
Cleveland Stock. Exchange
Union- Commercer Building —^
Cleveland If
Main^7071
dentist endorses with full recourse
and presents to* the-bank for dis¬
count. Payments are made by the
patient directly to the sponsoring
bank over a period of from six to
12 months.
The doctor or dentist
MUNICIPAL
SECURITIES
StranahanRarris & (ompany
receives his/ mohey directly from
the bank.
INCOBPOBATEO
j
To
protect the bank against loss,
a
reserve, which is usually about
10%, is set.up out of each account
on
doctor's
dentist's
or
in
of the bank
books
the
The
name.
been
has
loan
of the
by the bank is lessened
yield is higher than
advance
the
that
-.so
that charged
regular personal loans. No co¬
and averages-close to
maker
or
and the
make
COLLIE NOKTON & CO,
charged to the borrower
the rate
on
ISSUES
As a
feature, the
completed.
reserve
MICHIGAN
OHIO and
when
full payment of the amount of the
d result
collateral
is
CLEVELAND
CINCINNATI
is paid customarily
reserve
CHICAGO
TOLEDO
NEW YORK
Specializing in
the
ESTABLISHED
Toledo 4* Ohio
1108 Toledo Trust Bldgr.
1920
Members of
required,
New York Curb (Assoc.)
Exchange
patient does not have to
extra trip to the bank
Cleveland Stock Exchange
an
to arrange
for the financing.
The
suggested rates to the patient are
somewhat less than those charged
regularly by the banks on
usual
instalment loans.
The
consumer
STATK
&
M UN ICIP A L
LISTED and UNLISTED
procurement costs on the flow of
is" low
loans
the
after
acceptance
of
plan- by doctors and dentists,
SECURITIES
BONDS
and every borrowing patient is a-
potential customer for other bank
services.
Posters
:d•,
and
/'■;-d:'d''' ddr;■
a
series
of
news¬
the
has
promotion of the plan-. In 1945,
Missouri Bankers Association
been
taking
action
:
BRAUN, BOSWORTH & CO.
toward
sponsoring' the Blue Triangle plan,
and active y ; ■
'stndips are
(Continued on page 2760)
•
New
Toledo 4, Ohio
:(Bankers Association to the banks
for
30 Pine Street
508-12 Madison Ave.
display advertisements are
supplied5 by the Massachusetts
paper
INCORPORATED
d"
Telephone: Adams 6131
Long Distance: LD 71
Bell Teletype : TO 190
Private Wire
TOLEDO
—
NEW YORK
—
DETROIT
—
CHICAGO
—
CINCINNATI
to:
d
York
5, N. Y.
Bowling
Telephone:
Green
Bell
Teletype
;
New York
are
people to delay or postpone
measures for the preservaticn of
(
Chicago
~.
William Blair & Co.
plans,, and. thereby seeks/ to elim¬
inate the tendency
!
>'ddd
Oklahoma City
not insured,, and. the expenses not
covered, (under these
insurance
many
J
St. Louis
Mr. and Mrs.
.
;
New York
Baltimore
Alex. Brown & Sons
Riepe, J. Creighton
Riley, J. H.
Ritter, Daniel J.
Robb, Walter E., Jr.
*Roberts, Malcolm F.
Robinson, Arthur R.
Robinson, Edward H.
New York
meet
to
proposes-
■
.; Nashville ♦-New York
Department
Prescott, Wright, Snider Co.
Prescott, John A.
Pressprich, R. W., Jr. 4i R. W. Pressprich & Co.
Alex. Brown & Sons
Price, William J. 3rd
-
1
San Francisco
Blue
The
care.
needs of the people who
the
.
the Massachusetts
Society and the Massa¬
chusetts .Dental
Society.
The
Medical
/
>
9-2432
:
NY 1-2978
CHICAGO—DETROIT—NEW YORK—CLEVELAND
!®3'
THE COMMERCIAL & FINANCIAL CHRONICLE
Russell, P. S., Jr.
Rutherford, George P.:
Flutter, John T.
(Continued from page 2759)
Scharff & J ones
V
Roe & Co.
San Antonio
7 /
Chicago
Hickey & Co.
Rogers, John C.
Rogers, Sampson, Jr.
Roloff, Frederick W.
*Roney, William C.
Roob, Edward A.
Ross, Cornelius A. 7/
McMaster Hutchinson & Co
Chicago
Georgeson & Co.
Wm. C. Roney & Co.
Chicago.
<
7-
Mullaney, Ross & Co.
George V. Rotan Co.
Hornblower & Weeks
Stroud & Co.
•
Detroit
.
Salomon Bros. & Hutzler
Rotan, Edward
7
Rovensky, William R
*Rowe, Robert G,
Rowles, Duncan M, 7
Rowles, Ruksell R.
Ruhl, J. H7%
Rushton, Joseph A.
""Denotes
New Orleans
{■
•
Chicago
:
Chicago
7
New York
Philadelphia
Chicago
7
;
/
Houston
-
.
Harris, Hall & Co.
,
Houston
Dittmar & Co.
Quail & Co.
Davenport
Goodbody
Chicago
7 7
& Co. %77YfT777
Mr. and Mrs,
'
•'
1
Glore, Forgan & Co.
Dominion Securities Corp.
Journal of Commerce *
' *■'
Ryan, Sutherland & Co.
)
'
* (
'
Ryan, FrankL.
•
Roddy, James E.
Roe, E. Jedd.
'V*:
.
Thursday^ December 6/1943
Saltonstall, Leverett v
*Sanders, David T.
Sanders, Jesse A. 77/»7'*Sattley, Hale V.
Saunders, M. Ames :777r
*Scanlan, Earl M.
Scarborough, E. W.
'
Schanck, Francis R., Jr.
*Schmelzle, A. M. ;
7
}'$
•
*
New York
New York
Chicago
Toledo
*'•" v'.V,.",
n'1
Schmick, Franklin B.
Schmidt, Walter A.
Schoeneberger, C. A.
Scott, Walter
7V ' '7 Lord, Abbett & Co.
Schulte, Theo. E., Jr.
Farwell, Chapman & Co.
;■
Scribner, Joseph M.
Singer, Deane & Scribner
Scuddet, Dana Bv :
National City Bank
Seeley, Herman G.
' Chicago Daily News
*Seifert, Russell E„
Stern Brothers & Co.
,Sener„ Joseph W..
Mackubin, Legg & Co.
Seving, Frederick T. ;V Butcher & Sherrerd *
•'
Seybold, Joseph L.
Kalman & Co.
/
Shanks, Sanders, Jr.
Bond Buyer
*
: \
Shannon, Jones B.
; Miller, Kenower & Co.
s
Sharp, Nathan S.
R. S. Dickson & Co.
Sharpe, William P.
Mercantile-Commerce Bank
Shaughnessy, L. E.
.Park- Shaughnessy & Co.
Sheldon, M. W. //\77777'-Bingham, Sheldon & Co.
Shepard, Robert 0.7
Hawley, Shepard & Co.
Sherwood, E. A.
Harris Trust & Savings Bank
,
•
DETROIT 26
'
:
■
Shillinglaw, David L.
Shreve, Wickliffe
'
Shillinglaw, Bolger & Co.
Lehman Brothers
Dewar, Robertson & Pancoast
E. M. Newton. & Co. V
Lee Higginson Corporation
G. H. Walker & Co.
Sikes, Travis
Simmons, Carleton H.
Simmons, Richard W.
Simonds, Godfrey B.
*
Denotes
.
(Continued
on
page
page 2759)
being made in New York, Kansas,
and other states,
.,/.,:.;77\
.
7':]777'Conclusion
In
the
:
Y/
postwar period
.
shall
we
find
about 36,000 lending institu¬
tions and more than' 120,000 in¬
stallment sellers actively
ing
services.
field
promote
installment
consumer
credit
Institutions now/in the
planning to expand and
preparing to enter it.
oversupply
of
funds
are
New York
others
Chicago
7
Pittsburgh New York
The
Chicago
Kansas City
try will be available to banks and
are
vast
represented
by
the
sharply
in¬
the 'coun^
creased bank deposits of
to
Philadelphia
other lending agencies. In ad¬
dition, many manufacturers with
greatly increased cash funds may
Minneapolis
wish to do their
New York
Detroit '
Chicago
St. Louis
St. Paul
ment
Baltimore
>
Chicago
■-»
New York
San Antonio
,
Chicago
Providence
2769)
probably enter the
many
consumer
loan field.
Chicago
Boston
install¬
consumer
financing directly and
investors with money in the banks
will
Milwaukee
Cleveland
Mr. and Mrs.
;
7§
(Continued from
;
t
.
;
Credit Plans
/'
' 7
,
,
19(2 BUHL BUILDING
•
Sanders & Newsom 1
H. V. Sattley & Co.
M. A. Saunders & Co.
■
-7 Memphis^:
Earl M. Scanlan & Co.
Denver
Central Republic Co.
New York
First Boston Corporation
Chicago 71
Fusz-Schmelzle & Co. : % § St. Louis
Straus & Blosser
•,
/•
Chicago ;
Schmidt, Poole & Co.
7 Philadelphia
Shields & Co.
Chicago
„
Higbie Corporation
"
Washington
Chicago
Dallas f
;
Detroit
U. S. Senate
.?
Vance, Sahders & Co.
(
Carlton M.
i
Commercial Bank
It is expected that the
competition will not be ordinary
or just keen;
it will be unprece¬
dented.
One
probable result of
benefit to society may appear in
the form of a greater variety of
convenient services or plans and
lower costs for different types of
consumer
/
credit.
There t is
side
another
the
to
picture of the possibilities of so¬
cial gains and private profits—*
although actual profit realization
may fall far
below present op¬
timistic
expectations—from
expansion
war
in
the
installment
consumer
post¬
field
of
credit.
It
that consumers are to find
themselves literally swimming in
appears
DEALERS
UNDERWRITERS
State and
-
DISTRIBUTORS
Miller, Kenower & Company
Municipal Bonds
Municipal and Corporate Securities
a
The
Corporate Stocks and Bonds
7:;::
-
Trading Markets in
■
General
7,
,7,-.;t
Penobscot Building
DETROIT 26, MICH.
,
Municipal Securities
Bell
Telephone Randolph 3262
Teletype DC 475
in
the
postwar
possibilities
in
danger
credit
sumer
i
:•
credit
and prospects
the postwar con¬
competition
are
viewed by many students as fan¬
tastic.
State
legislation in the
of
■7/
of
sea
period. The unprecedented com¬
petition foreseen may well prove
to be a
major threat to sound
postwar credit. ;
field
in
which the competitive
struggle is envisioned is widely
regarded as-.chaotic and unsatis¬
factory and, even within states,
as lacking in
the uniformity and
effectiveness required to assure
fair competition among consumer
installment agencies and to pro¬
Direct Private Wire New York to Detroit
tect
Members of Detroit Stock Exchange
people feel,
tend
may
CHARLES A. PARCELLS & CO
The
consumers.
some
probabilities,
that credit
into the per¬
are
flow
to
sonal
loan
ment
sales field after this
a
and
install¬
consumer
ESTABLISHED 1919
flooded
it
vestment
Michigan Markets
and
that
tend
to
way
BONDS
~
even
late 1920's. It would
639 PENOBSCOT BLDG
RAndolph
Corporate Bonds arid Stocks
DETROIT 26, MICH.
served most
5625
RAndolph 3976
ing
of
interests
1920's,
credit
may
and
more
looser
early, 1950's than
1940's
seem
that the
would
all
and
in' programs
public
to
wisely,
rather
the
and
lenders,
use
educate the
to
credit,
consumer
than
placing
ex¬
the promotion
of volume regardless of its
on
be
associations, cooperat¬
clusive emphasis on
Specializing in Michigan 7:7
and
in the lush
effectively by install¬
sellers
their trade
TELEPHONE
late
late
ment
Mercier, McDowell & Dolphyn
in
in¬
market
the
the
best
—
stock
in
consumer
be
abundant
Listed and Unlisted Stocks
the
field
in
war
fashion reminiscent of the
•
effect
.77: -7 7-:;/'7,7
consumer.
Listed and Unlisted Securities
Approval of Study for
Strengthening Pan. Canal
Underwriters & Distributors
A bill which authorizes the gov¬
ernment •*' to
the
Panama
investigate
Canal
must
whether
be
re¬
built to reduce its vulnerability to
MEMBERS DETROIT STOCK EXCHANGE
atomic
bomb
attack
was
unani¬
mously passed by the House and
sent to the Senate
on
Nov. 26, ac¬
cording to United Press Washing¬
WM. C. RONEY 6- CO
MEMBERS
BUHT BUILDING
7 '
7.CA-5752
DETROIT 26, MICHIGAN
;;77<.7:"/77,
DE-507:
NEW YORK STOCK
EXCHANGE
ton advices. Under the
the
legislation
investigation would be made
by the Governor of the Canal un¬
812
BUHL BUILDING
DETROIT
26, MICHIGAN
der the
supervision of the Secre¬
tary of War, and a report would
be
submitted
Dec. 31,
1947.7;
to
Congress before
;7: 7777 v" V;'
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
.Volume 162
Industrial Securities Committee Concerned Over Control of Aviation Issues
■
(Continued from page
2726)
July 31, 1945, offerings of cor¬
porate securities
in the capital
to
markets
million
/ /
United
the
of
amounted to
States
10 billion 200
about
dollars.
y,;:\ '
Of this amount nearly 25%
resented
first
offerings
the
the
months of 1945.
seven
In
rep¬
in
made
nineteen
/
months
ended
July 31, 1945,: offerings of corpo¬
all financing by public
pe¬
1941, to July-31,
The increase in the annual vol¬
31,
1945,
more
than
engaged in
and only
represented
"new
refunding purposes
2.5%
Out of the
$1,831 million of fi¬
nancing by the railroads in the
four
years
and
seven
months
metrical, the figures }
1943, $1,154 millions; for 1944, ended July 31, 1945, $484 million,
$2,960 millions ;^and, for 1945, the or 26.4%, represented "new mon¬
indicated annual rate, obtained by ey" issues and $1,347 million, or
doubling the figure for the first 73.6%, represented refinancing in¬
half year, is $4,860 millions.. .v
to issues carrying lower rates of
f ;.
interest.
However, the railroads,
In large measure the activity
in common with the public utility
represented•; by these figures has
companies,
have recently been en¬
consisted of refundings and is the
product of (i) the expansion of gaged almost wholly in refinan¬
For the seven
bank credit engendered to finance cing operations.
the War, (ii) the inflationary in¬ months ending July 31, 1945, only
in
the
of
currency
the
public, and
the progressive lowering of
(iii)
the
thp amount of
hands
interest
has
which
rate
been
brought about by the "easy mon¬
ey" policies of the Federal Govr
ernmentv^lp-//:^ ;
total amount of corporate
ing
the
financ¬
public
nineteen
months
undertaken
markets
in
in
the
ended July 31, 1945.
For the pe¬
1941, to July 31,
1945, the figure was not much
larger, - amounting only to about
26% of the aggregate.
riod from Jan. 1,
On the other hand, the refund¬
ing of evidences of debt and the
refinancing of preferred stocks by
the issuance of new obligations
carrying a lower rate of interest,
or
of preferred shares having a
lower dividend rate, has accounted
for about 80% of all corporate fi¬
nancing from January L to July
31, 1945. For the four years and
seven
date
months ended
refinancing
accounted
for
the latter
on
rates
lower
at
72%
about
of
all
corporate financing in the public
markets. '
;
.
,
Our business has been
in and is
about
engaged
of
7%
railroad
the
new
issues
of
for the
purpose of obtaining "new mon¬
ey"; the remaining 93 % repre¬
senting refunding operations.
obligations
was
Industrial Corporations and'
;
Financing to provide "new mon¬
ey" /for corporate purposes rep¬
resented only about 20% of the
counted
for) about
of the
3%
mainder of all corporate
It
clear
seems
that
re¬
financing.
when
the
public utilities and the railroads
completed their refunding
have
(and
operations
many
have: already done so)
of them
successful
.
"New Money"
Industrial
a
corporations have to
greater extent entered the capi¬
tal markets in recent years
ing
indutsrial
of
Successful
a
considerable
done
extent,'on what is
facilitate industrial fi¬
to
the provisions of
nancing under
theNSecurities Act and under the
State
ort
blue
sky laws,; as well as
what is done aboht competitive
bidding,^ private placement and
problem of syndicated offer¬
at a price fixed by agree¬
the
ings
All of these matters are of
ment.
special concern to those engaged
in, handling industrial financing,
^
As
we
have already
which
tion
said,
a pro¬
of the Federal Administra¬
posal
would
require public
bidding in the sale
securities, is now be¬
fore Congress. Other agencies of
Government are engaged in ac¬
tivities at this time which, many
think, have as their objective the
competitive
of
line
air
imposition of a competitive bid¬
ding requirement on sales of in¬
dustrial securities.
MacNaughton - Greenawalt & Co
MEMBERS DETROIT STOCK EXCHANGE
"
'
for the
of raising "new money."
purpose
finance.
|. operation • will depend, also, to
/
money" financing.
offerings since Jan. 1,
1943, has approximated the geo¬
in
of about
Sales of securities for
"other purposes," chiefly to ac-1
complish change of ownership, ac¬
years.
of constructive service in the field
ume rate of
crease
4j/2
by public utility corporations was
July
of the financing
about
$
p
months
seven
during the period
tions
for
97%
aggregate for the
cor¬
operation in the investment bank¬
business will depend to an
increasing extent on the rendering
ended
lian 390 million dollars, or nearly
53% of the
the
In
1942.
and
rate securities totaled dbout 5 bil-
riod from Jan. 1,
1945.
utility
porations, in the period of about
4% years from Jan. 1, 1941, to
July 31, 1945, consisted of refund¬
ing
or/ refinancing
operations.
Only 12% of the total of offerings
by public utility corporations was
for the purpose of obtaining new
money
and,, for the most part,
such offerings occurred in 1941
Private
We
find, for example, that in the
seven months ended July 31, 1945,
about 40% of all new financing
direct
The
Placements
"private" sale of
or
WEST MICHIGAN SECURITIES
by industrial corporations was for
corporate securities to investment
institutions, without registration
under the Securities Act, contin¬
the purpose of
ues
important factor in
corporate finance. In¬
corporations now account
for nearly all of the issues which
are
sold through this route. The
Complete Trading Facilities
raising "new
mon¬
ey," while only about 20% of all
corporate issues during this pe¬
riod
for
was
that
purpose.
period- for four
years
and seven months- ended
July 31, 1945, 41% of all new is¬
sues
sold in the capital market
the
Throughout
to
be
an
the field of
dustrial
by industrial corporations was for
bidding, in the sale of public util¬
ity issues, established by the Se¬
curities and Exchange Commission
the purpose
in
The
S.
of raising new money.
corresponding figure for all
corporations represented 26% of
the aggregate amount of corporate
issues sold in the capital markets.
Refinancing of funded debt and
preferred
about 56%
nancing
stocks accounted
for
of. all funded debt" fi¬
by
industrial
corpora-
GRAND RAPIDS 2, MICII
requirement of public competitive
the adoption of
removed
1941, through
C.
E.
most
the
Telephone 93121
Teletype GR 466
Rule U-50, has
public utility issues from
area
of private placement.
And the
competitive bidding rule
adopted by the Interstate Com¬
merce Commission, which became
effective May 1944, has operated
to curtail the direct sale of is-
Dudley H. Waters 6» Co
Rapids 2, Michigan
Grand
probably well past
the second major re¬
financing movement to lower in¬
now
the peak of
terest
has
or
dividend
rates,
which
of
the field
in
occurred
McDonald-Moore&€o
cor¬
porate finance in the past fifteen
years.
The first of these move¬
ments reached its peak in 1935 and
ending with the
break of September 1937.
With
so
so
!
MEMBERS
things
to
do
it
is
REAL
possible that insufficient attention
has been given to the prime eco¬
nomic
function
of
channeling
savings
the
dustry.
-
If
into
further
we
in true
Complete Service
EXCHANGE
michigan
ESTATE SECURITIES
securities
CORPORATE BONDS
—
are
unlisted
new ,investment for
development of in¬
Phone 9-8168
Ass'n of
to
see
perspective
at the friarket as
so we
STOCK
MUNICIPAL BONDS
much business in hand
many
DETROIT
market
1936,
and
"
find that
a
developments
we
1566 Penobscot Bldg,
must look
Detroit
whole. In doing
more
26, Mich.
810
Michigan Natl Bk. Bldg
Teletype GR 280
Commerce Bldg
Grand Rapids 2, Mich.
than 87 % of
M. A. MAN LEY
MEMBERS
DETROIT
STOCK
& CO
WATLING, LKRCHF.N & CO
EXCHANGE
Investment Securities
Specializing in
Members
Bank and Insurance Stocks
Detroit
BUIIL
Teletype—DE 92
Stock
York
Curb
Associate
Chicago Stock Exchange
Exchange
DETROIT
BUILDING, DETROIT 26
Telephone-^-Randolph 1890
New
New York Stock Exchange
Ann Arbor
Jackson
Thursday, December 6, 1945
CHRONICLE
THE COMMERCIAL & FINANCIAL
2762
Industrial Securities Committee Concerned Over Control of Aviation Issues
have
(Continued from page 2761)
called
P.
S.
I,
has
and
case
pressed the view that the agree¬
ments
under discussion in
that
case were not in violation of the
Sherman Anti-Trust Act.
A Bill
which
such
doubt
agreements and remove all
as to their legality was in¬
troduced:-in
Effective
,
this
early
Congress
18,
1945)., Your Committee believes
that legislation to accomplish this
purpose is desirable and should
(H. R. 1626, dated Jan.
year
of
the
coming into effect of
tion
Registrations
of
Date
particular concern to indus¬
trial corporations which wish to
engage in new financing and to
controlling persons of corporations
whose securities are being placed
on the market for the first time,
is the appearance of what seems
to be a new doctrine relating to
the interpretation of the provi¬
sions of Section 8 (a) of the Act,
as amended in 1940, governing the
Of
authorize
clearly
would
support
active
the
Association*
exT
registra¬
a
statement.
.
Originally the effective date for
corporate issue was the 20th
day after filing. In 1940, when the
Investment
Company
Bill was
before
Congress an amendment
a
added
was
to
that
which
Bill
changed the provisions of Section
8
(a) of the Securities Act to
provide that registration
state¬
ments
the
after
day
earlier date
such
effective
would become
20th
as
on
on
or
the Commis¬
sion might
determine "having due
regard to the adequacy of the in¬
formation v respecting
the issuer
theretofore available to the pub¬
lic, to the facility with which the
-
x.
...
istered, their relationship to the
capital structure of the issuer and
the rights of holders thereof can
be understood, and to the-public
interest and the protection of in¬
:
vestors."
CANADIAN
PUBLIC UTILITY
-
INDUSTRIAL
-
-
RAILROAD
'
COMMON STOCKS
PREFERRED AND
BONDS,
set up
the
York ami Milwaukee
just quoted represent
As understood at that time,
new
'
language
vance
date.
registrations became effective
within 'seven
to ten
days after
prospectuses available and
in
whether it would be
to
permit
to
become
a
"
a
/
In the course of the past year or
however, the Commission
to have developed a new
theory as to the intent and pur¬
pose I of the
in Section 8
language, contained
(a) as amended in
V
At': present
Commission's
the
tends
to
discriminate
a g a i n s t
registration statements
filed by controlling persons both
as to time of making them effec¬
tive
.
and
trolling
proper
-person!
the
refuses
:
The
celerate
the
indemnity
Commission
also
general
rule
to
effective
date
where
a
as
is
from
runs
an
underwriter in the
sale of securities by
person.
-
"
case
a
ac¬
issuer to
of the
controlling
»;•
Commission has also acted
The
under Section
8
(a) to prevent a
registration statement from be¬
coming effective in cases where
pe¬
a
seeking
-
V;_.,
.
there
Then
that: in
is
the
the further
BALLMAN
MAIN
«
statements
to
sometimes allowed1
are
twenty days or more before,
run
they become effective.
In view of this it
to your
seems
that action; should
Committee
with
statements shall become effective.
Such
change would enable in-v
issuers, and owners of
small corporations to whom such
matters are of great importance,
a
dustrial
to
than
outcome
under existing
•"
•
-f
t-Jfi;
*
-
banker for indus¬
the primary
capital
War
funds.
sold
the
industrial
build
to
dustry.
Government has carried
virtually all of the risk.
The ne¬
Bonds
cessity for this during War need
not be debated here. But with the
coming of peace the function of
raising funds to supply the cap-f
ital needs of industry should re¬
Co.
CHICAGO 3
105 W. ADAMS ST.
-
7907
,
CG 108
vert to the investment markets..
For
several
Chicago Stock Exchange
Chicago Board of Trade
New York Cotton Exchange
Commodity Exchange, Inc.
been
or
V/)/)£e O LJQ
laws
major factors in this result.
revisions in the tax
have now been made and,
while many
735 Sout/i Jla §a//e Street
Investment Bankers Association of America
Members
Telephone State 0933
Telephone Dlgby 4-6500
Teletype CO 1279
Teletype NY 1-633
generally to be a somewhat better
atmosphere for the expression of
the
ONE WALL STREET
new
-
Chicago Stock Exchange
■
William T.Bacon
J. Preston
'■■■'
•
Partners
Jay N.Whipple
•
Burlingham
William D. Kerr
Ernest F, Ka'rtshorne
•
James W. Marshall
•
by
Mobilization
•
•
Recently we were in¬
the Director of War
and
Reconversion
that "the American people are in
formed
;■''''3^3§1? 3
'rO3'
discovery and development of
industrial products and tech¬
niques-.
York Stock Exchange
Nev)
-Augustus Knight
.J'
the
pleasant predicament of hav¬
to learn to live 50% better
they ever lived before" and
that the expansion necessary to
ing
than
accomplish
SdaAAiA#/ iS8T
Stocks
3>zcAanpe6
Brokers in
.
'
'
Bonds
Doyle, O'Connor & Co.
Commodities
•
INCORPORATED
V
J
*3 O:':-
'•
'
.
135 So. La Salle Street, Chicago
Unlisted Securities
,
65
.
.
Markets in
,
3
'v
Broadway, New York City
135 So. La Salle Street
Chicago 3
RANDOLPH 0722
TELETYPE
Connecticut
New Haven
-
this
or
^/orA £/}ocA (oxcAarup# atuA olAen
lear/crup
Waterbury
Rockefeller Center,
N. Y.
-
CG 408
Branches
Torrington
-
-
Hartford
-
London, England
Danbury
difficulties re¬
Certainly there is a vast field of
opportunity for new investment iit
NEW YORK 5, N. Y,
135 SO. LA SALLE STREET
grave
main to be overcome, there seems
individual enterprise.
CsAzcaqo 3
-
op^
Important
National Association of Securities Dealers, Inc.
(
general
not
"venture capital'" to
Fiscal policies and the
effect of the income tax laws have
Exchange
its/hmAwi
has
industry.
New York Curb Exchange
w-——•••
the
years
market
efficiently to supply "new"
money"
Members
-
to in-'
Municipal
erated
.
bonds
amounts
large
proceeds
used
loan
public and out
the
to
investment
.
K
try and as its chief source of new
were
STATE
*•'
<■■&*-\ *;
•
Industrial
Place in
Financing
--
the
possible
is
practice.
'V
.: '■
plans
to
as
assurance
more
V.
their
with
forward
go
with
final
plants and to make loans
CHICAGO 3, ILL
be
the
object of estab¬
lishing a definite statutory period
of time within which registration
taken
of
M
New York Stock
past
by work with the result that for
this! reason
alone v registration
as
33
&
fact
the
of
course
SQ.the Commission's staff
or
year
in the,capital
new money
markets.
were
Bear, Stearns
new
Throughout the War period the
United States Government acted
(Associate)
-
herring"
dustrial corporations who may be
Government's
Street, Chicago 3
N5¥ York Curb Exchange
action
extremely
"red
has been placed in the
of the less well known in¬
way
con¬
paying" the
share of expenses of reg¬
istration.
an
whether
to
as
Telephone State 0577
Members chicago Stock Exchange
now
obstacle
.
105 South La Salle
*
of
are
make
.
policy
McMASTEK HUTCHINSON & CO.
.
this
result
to
has found itself heavily burdened
1940/';;;-: v:vC%r:
appropriate
a
a
reluctant
appears
deciding
within
As
underwriters
.
registration statement
effective
pursued
of filing.
the date
standards to be applied by
Commission
uted
policy of
accelerating
most
registration
statements and, on the average,
intended to
was
following
or
has
Commission
language introduced in
new
1946.
the
Private wire to New
v.;: -3-
The words
the
For two years or more
"red herring"
been distrib¬
to
the
public
in
ad¬
1
of
the
public
offering
preliminary
a
prospectus
enactment of this amendment the
more,,
filing
nature of the securities to be reg¬
EQUIPMENT TRUST CERTIFICATES
riod of less than 20 days after the
date of initial filing.
3, Illinois
result
-
"must.:.be
Volume
Number 4444/
162
'
"/•
' '
"
THE COMMERCIAL &
FINANCIAL CHRONICLE
must be
Saltonstall Forecasts Goveinmenl Actions
management
); (Continued from
page 2725)
that industries
titude
of
mind
should be free to
cap
be
to their contractual obligations
being unreasonable in their de¬
mands.
I am a firm believer in
most
ability of our citizens to set¬
enterprise breaks tle their differences; in a demo¬
down and we have a greater gov¬ cratic fashion. I for one hope that
ernment regulated and built econ- government can be kept out of
management-labor disputes just
system
■
of
the
free
\ *
possible. During the war
we have- gotten into the habit of
looking to government to inter¬
vene.
If other negotiations, fail,
then it is clearly the responsibil¬
ity of government to step in and
as
Problem of Labor-Management
'V
Relations
>
,
,
-"The problem of labor-manage¬
■{
ment
relations
and
the
govern-
>ment's
part in those relations is
acute at the tnoment," he
-very
"stated.
"The
between
labor
/
and
But I
management is attempting to set
sympathy with either
no
brought about by positive policies
"pn the part of business, agricul¬
ture, labor, and local, State and
Federal
Governments."
hope
we can
built
are
on
a
solid,
our
rity
depend
happiness and
be
that there may
some
the other. We tend to be¬
hysterical. I believe that the
present difficulties are the hang¬
the
of
over
mately, when
cleared
away,
that
and
war
the hangover
better
and
i united states government
ulti¬
>v,>»A
'
I firmly
believe that only in this way; can
ij'A: r!
(fs,
1
',
* i'
.
r-*'
ivr ^
•,
..
•'
/
""■'
*'
.
-
,
"V1"
A
/
1
''
w
iK''?-' a'"v'v; \
1
m
* ■"
'•
1
*
\ •=.
v,
v '
Finally, he said, "The interna¬
They will affect your business
the
before
than
more
•
.
[
>
■■
TRUST COMPANY
We
war.
{
"4r
nt
' 1
•
Hthe Northern is
much small¬
world has. become so
er.
,c'i5
)<***
FRANKLIN 7070
*•
.
Chicago 90, Illinois
•
BELL SYSTEM TELETYPE
«
C G. 368
A# G. Becker & Co#
hammering should begin;.
We
'*•«''
\V
municipal bonds
regulation."
son, from whose
tation
is
taken,
the
-
50 South La Salle Street
reporKthis quo¬
said that "the
time to start hammering out these
policies is now, while the transi¬
tion
is
still
young.
We agree
with that view. We think that
'n.f
-
state and
more
relations can be estab¬
arid, /I hope, without too
much government interference or
lasting
lished
to all of us and to our system of
action.
'41
V*
•'
has
living in this country because the
government
as¬
wayxor
come
ment, just as fast as possible that
personal ones and not dictated
must
this character."
sume
legis¬
tions between labor and manage¬
by
Your inter¬
relationships
national
secu¬
relation¬
our
Jhat is too drastic in one
return to rela¬ tional problems will become closer
are
our
sympathetic
our
on
and
ship with the world.
remember
.
the present time
"The danger at
is
lation
Vin¬
Mr.
that
understanding
of our
sure
we must
lasting and permanent foundation.
.
life of the nation.
fect the general
out a system of principles to es¬
tablish the responsibilities of each.
I have
as
try to settle differences which af¬
present conference in
-Washington
far
that
lations
or
economically;; and,
profitably operated, otherwise our
.
achieve labor-management re¬
we
up
where they
go
labor; not living
or
everlastingly
security, but
INCORPORATED
with the view
expressed recently by Dr. Harley
I», Lutz, Professor of; Public Fi¬
nance
at
Princeton
University,
who observed that if business is
to operate successfully "men need
a renewal
of confidence that (a)
they will be permitted to take
chances, (b) they will be allowed
to enjoy the fruits of success, (c)
long-range commitments will not
be jeopardized, by monetary jug¬
gling, and (d) government will be
cooperative and encouraging
rather than coldly indifferent or
also
agree
v.
1893
ESTABLISHED
y:
■
Public
'*%<
■
Municipal
Railroad
Industrial
Utility
Corporate and Municipal Bonds
Commercial Paper
'
—
'
-
Underwriters
Investment Stocks
Bonds and Stocks
Dealers
NEW YORK
Distributors
CHICAGO
-
hostile."
A?year
its report to1 the
ago in
investment Banking for over Fifty Years
Annual Meeting your Committee
we could not avoid the
said that
responsibility, either
as
investment
or
bers
of
bankers
individual
h. M.
mem¬
as
Incorporated
all J in our power
to create an at¬
mosphere in which risk money
can—and will—go to work. That
this should be one ofi our major
contributions to post-war
reaffirm
We
since
believe that the
we
And,
core
St., Chicago 3, 111.
Teletype
Telephone
State
America.
view.
that
135 So. La Salle
Underwriters
of
for the revival of
a
healthy system of private en¬
terprise is a correct conception of
the functions and place of Gov¬
any
Byllesby and Company
this Association, of doing
Distributors
and
New
CG 273
8711
York
Philadelphia
Pittsburgh
Minneapolis
program
"■
:
we
State and
actively for the adoption of
work
;V-'v;
v
Municipal Bonds
for the re¬
unnecessary
and bur¬
policies and
positive
of
moval
f
.//;" ■v.:
Corporate Stocks and Bonds
believe, and we wish
to emphasize the view, that this
Association should at all times
ernment,
of
"
densome
restrictions which
ernment
has
imposed
of
operation
the
Trading Markets in Unlisted Securities
the
capital
free
market.
Gov¬
upon
i
*
'
t
t
I
'I
\
'y
x
'
{
"
'
v;
,
.
^
lA
i.
>1
,
\
<
V
J
1
"
Industrial Securities Committee
Ames, Emerich & Co., Inc.
—Robert McLean Stewart, Chair¬
man;
Louis
J.
Blankenship,
M.
Fred
Bayne,
Cross,
W.
Sydnor
Member Chicago
Lofft,
James
Maynard
Parker
Schmidt.
,
Nolan,
Murch,
H.
Walter
Utility
Stock Exchange
Gil-
breath, Jr., Perry 3E.. Hall, Hubert
W.
Public
Established 1911
Henry M. Bateman, William
Chicago 3
105 Sou LaSalle Street
I ndus t
r
i
a
l
Teletype CG 1183
STAte 5300
Railroad
A.
'
Municip al
UNDERWRITERS AND
DISTRIBUTORS 8
OF
INVESTMENT SECURITIES
'_
;
A.C.ALLYN™d company
Incorporated
Central Republic Company
209
NEW
DES
SOUTH LA SALLE
STREET, CHICAGO 90, ILL.
YORK
MILWAUKEE
MOINES
OMAHA
Members of Chicago Stock Exchange
MINNEAPOLIS
:
'
ST.
LOUIS
Chicago
New York
Minneapolis
Boston
Kansas
City
Milwaukee
Omaha
THE COMMERCIAL &
2764
FINANCIAL CHRONICLE
These
The Government Looks to Investment Bankers
The bankfers of- this country can
(Conitnued from page 2724)
have more than tripled since the
beginning of the war years, and
now stand at
nearly one hundred
and iifty billion dollars.
Administration's
Attitude
Restraints
on
which
go
make
to
the
up
the
Administration's
the
ward
these
an
economy
restraints
is
the
has- the
paramount
to ex¬
to
With opportunity there goes an
to¬
accompanying
wartime
the
The Administration be¬
lieves that
of small business and, even though
it will not be easy to find the cor¬
the degree that will be
necessary if we are to have the
high production and high con¬
sumption levels that are desired.
out¬
attitude
Government's
restraints.
a very ;real concern with this subjet, but I believe that the invest¬
banker
greater
free from
greater
best
would
pos¬
responsibility, and
the opportunity, the
We
the" responsibility.
do
well
to
consider
some
of
the
responsibilities that are
for the American:
'
"
'
people. The policy of lifting war¬ properly yours.
time controls as rapidly as is pru¬
A primary obligation of the in¬
dent is guided by the belief that
vestment bankers will be to pro¬
sible
economy
such
a
system is the
desired
one
by the American people, and the
that
one
have.
it
;>
s
they
are
determined to
'
vide new: venture capital.
You
have, of course/given this subject
careful consideration, and you
are,
no
doubt, already: cognizant of
That guiding principle also dic¬
our
actions in getting the
Where your
tates
I believe that your con¬
tribution to a greater America, in
Government out
of business—in
turning business activities back to
-the businessmen
sible.
■
,
as
rapidly
I
Q
opportunities are to
be found.
this regard, is limited only by the
ability and vision of the invest¬
as pos-
rect
solution, yet the need for such
and the profit inherent
a1* program
in
business
such
is
such
that
rection.
It may be
further neces¬
number - of
methods to fit a variety of local
or generic conditions.
to
It
-
develop
a
possible /..that community
financing of local projects ' with
the participation and guidance of
commercial banking firms may be
feasible.
I have read the report
of your Small Business Commit¬
tee on this subject, and I com¬
the
mend
Committee for
its
ex¬
haustive investigation and its able
I
report.
from
it
is
clear
a
un¬
type of endeavor, and
larger
scale, is the fi¬
nancing of new productive enter¬
prises in less industrialized states
often described by the catch-all
word
"decentralization."
tablish
STRAUS & BLOSSER
ent
The
of
During the
the Govern¬
plants in such
areas .for the primary purpose of
wartime security. ■
W
7
try.
war,
7
NEW
.
.
MEMBERS
YORK
CHICAGO
NEW YORK
STOCK
STOCK
CURB
EXCHANGE
EXCHANGE
EXCHANGE
.
'■
this
ment.
field
for great develop-*
noteworthy accomplish¬
During the
financed the
war
years, we
Nations
United
through Land-Lease and we are
assisting them now through
UNRRA. Just recently, the Con¬
gress enlarged the scope of the
also, that in an atomic Export-Import Bdnk '/which al¬
as this, the survival of ready has made a number of loans
may
depend upon the of consequence to friendly coun¬
decentralization of its industry.
tries.
v,7..; 7, ■■■■•;*">
:■
The Congress also has approved
7;
Checking Inflation ■ ".h
our
participation in the Bretton
Another responsibility involves
woods Agreements, and I have no
that
part
take
you^can
doubt that other nations will
in
checking inflation.
Aside from
the damage to the national econ¬
omy, unchecked inflation would
hurt investment banking as much
as
any other sector of Our econ¬
omy,
I believe that investment
banking may prove to be one of
the major checks to inflation. 7 If
tial
the
teed
tremendous
am
savings
in
the
cease
new
to pre¬
,
told that the great
are
not
likely
be
to
the~burchase of
consid¬
consumer
goods.
Investment bankers can
siphon off a substantial part of the
tremendous purchasing power in
this country by offering sound se¬
curities of moderate yield to the
public.
ment built numerous
*
for
in
such
ered for
es¬
the
upon
nation
but
manufacturing
plants in non-industrial regions
should prove to be a benefit to
the national economy of our coun¬
m
it
7: 7
major¬
ity of our people plan to buy goods
out of current income or by in¬
stallments payable out of future
income.
For the most part, sav¬
ings are regarded as being avail¬
able for some major investment,
such as a home or an education,
Financing "Decentralization'*
touch
consider
I
ment bankers.
a
markets
securities, they will
tinue its efforts.
on
wider
that
sent a threat of inflation.
this subject, and 'that it is the in¬
tention of the Committee to con¬
A similar
for
merit
ly applied to the purchase of
derstanding of the importance of
one
additional
development
hands of the people can be large¬
receive the impression
that there
a
improved
living standards
and
improved industrial payrolls in
many states.
Perhaps we should
the
is
Such
products of every sort because of
a
feel that it will pay dividends to
continue your efforts in this di¬
sary
the
age
I
to
not
ment and
well.
as
makes
already considered the pos¬
sibilities of long-range financing
I
were
tal
of small business. I know that you
pand
opportunity that exists
today for investment bankers, is
given is the financing
have
interest in aiding business
standing
be
attracted1
have
prospect for renewed and souftder foreign financing. There is room
private citizens to assist the Gov¬
in getting out of busi¬
ness.
Tne commercial banker has
ment
:
important a factor as any
those
previously mentioned,
Another field to which attention
.
should
plants
labor, merchants and community
enterprises and they may weii
prove to.be an attraction to capi¬
has
ernment
As
of
than any other group of
do more
Thursday, December 6, 1945,
would
be
remiss
in
my
,.'vi
(ASSOCIATE)
national Bank for
and
Reconstruction
Development, and the Inter¬
national
Monetary
Fund.
You
will probably be called
upon to
place
in
this
by the
I
country
substan¬
a
of securities
amount
guaran¬
World Bank,
new
:
am
particularly interested in*
the future program of the
ExportImport Bank. It is distinctly and
definitely "ours." The loans
by
the
Bank
loans
are
-
made
of
the
United States, and it will lend
on¬
ly to those who intend
to buy our
goods and only when the prospect
repayment seems clear.
■ ' 997:
of
Another
consideration
portance, and
are
that
lieves
that'7 it
eign
loans
should
only
banking cannot
The
Bank
banks
of
of
im¬
with which you
undoubtedly
acquainted, ns
the Export-Import Bank be¬
one
to
for7
private
serve.
expects
be
funds
make
when
the
commercial
primary lenders
abroad—and
has
it
vited close collaboration
on
in¬
every
project of this sort. The Bank also
Foreign Financing
I
(
soon
implement such agreements and
give the green light to the Inter¬
duty
is ready to
sell paper, previously
acquired, to private lenders. The
Export-Import Bank desires the
cooperation
in the
ers
of
investment
bank¬
foreign lending field;!
It may well be that your
cipal
135 SOUTH
LA
BROKERS AND
SALLE STREET
CHICAGO 3,
DEALERS
ILLINOIS
foreign
prin¬
as:7invest¬
activity
ment bankers will be in the field
of corporate rather than govern¬
ment
finance, although I feel
sure
that there will be business of both
types.
IN GENERAL MARKET
eign
Telephone ANDOVER 5700
Whatever the type of for¬
I am confident that
loan,
there
V
will
be
borrowers'
SECURITIES
debt
that the
and
the
of
assurances
ability to
service the
dollars needed
for that purpose will be generated
by
Direct Private Wires Coast to Coast
the
increased
trade
that
will
result. I cannot conceive that any
sort of lending will prove
other
DETROIT
KANSAS
CITY
MILWAUKEE
Hickey
INDIANAPOLIS
135 South La
Salle
&
attractive to you as
investment
opportunities for your customers.
Co.
Our private investments abroad
be thoroughly business-like
must
Street, Chicago 3,7U1.
in
Telephone Randolph
7. DIRECT
Teletype CG1234-1235
8800
PRIVATE
WIRE
NEW
TO
YORK
7■...
'\..v-
:77,r
character
and
the
standards
applying in the financing of cor¬
porations and municipalities in
this country, for instance, should
apply with 7 equal force to our
loans to foreign political bodies
and enterprises. We, in Washing¬
ton, want and expect investment
banking to
play
an
important
part in the days ahead.
7;: T
In
conclusion, I consider it fit¬
ting to
CARTER H. CORBREY & CO.
DISTRIBUTORS
WHOLESALE
express the Government's
gratitude for the time and effort
your association and your individ¬
ual members have given to the.
War
Drives.
Igiven in a
spirit of patriotism and high pub¬
lic responsibility without thought
UNDERWRITERS
services
of reward
PACIFIC COAST
MIDDLEWEST
Victory
and
Your
FOR
Bond
were
favor, and the prob¬
years were met
courage and intelligence. I
lems
of
with
or
the
war
j have the firm conviction that
SECONDARY MARKET DISTRIBUTION
will
meet
with the
same
COMPLETE TRADING FACILITIES
the
problems of
spirit and with the
same
success.
:
135 South La Salle
State 6502
Street, Chicago 3, 111.
Teletype CG 99
,
\
..
*
■
Previous
to
you
peace
..
.
7« 7-
*
the
above
'.7
'
address,
Mr.
Snyder spoke before the Na¬
Marketing Forum in New
City, Nov; 26. In this ad¬
dress, in addition to referring to
and
defending * peacetime
price
controls Mr. Snyder reported on
tional
York
BRANCH
650 South
OFFICE
Spring Street, Los Angeles 14, Cal.
MARKERS ON ALL WESTERN SECURITIES
vf-tv >
trci-■>#. E. NICHOLS, Manager;
''
the
.
Telephone Trinity 3908
9
-
•
Michigan 4181
Teletype LA 255
progress
of
reconversion
to
Civilianrproduction as follows
Actually,
the
progress
that is
being made in production is not
generally known to the public. As
a matter of fact, the physical re¬
conversion of the plants that were
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
162
'
•"
-operation before the war has
been 85% to 90% completed—and,
cutting tools, The electronics in
dustry has made great strides in
know, thousands of plants
war what they
ordinarily be making for
'peace, except for patterns/ pack¬
aging,
etc.
These plants
were
ready to go right into production
for post war markets.
New industries and expansion
of some of the old ones are tak¬
developing process control and
inspection operations.
; There have been great advances
in fabrication techniques and vol
ume
of production in the light
metals industries. Experiments to
develop
substitutes
for
scarce
in
as
you
making for
were
would
<
ing
Every
creased
-trade.
?'
There
-
has
a
an
fined
alone, of
goods.
C
After Japan
was
x
v
ers
surrendered, there
are
fore the
.early October output had moved
up again to about 80% of capa¬
city, and the trend continues up¬
ward.
of
capitulation
their
been
increased
in
arguments in favor
vestor
in
railroad
,<
Northey
John
in
the
S.
Chairman;
-
H.
'Jones,
George,
Arthur
and
of
Percy M. Stewart, Henry S. Stur-
funda¬
gis.
•
■
...
-
•
un¬
improvements and thus
a
high level of economic
It may be that a recog¬
nition of the improvement of rail¬
con¬
road
earning power as a factor in
general employment and prosper-
C$A,lU€<Zq>0> 3
technology
they did be¬
war
are
The
ward.
the
also
recital
going
of
for¬
,and
agricultural
potential
is
almost
Americans in field, shop
factory
produce
can
goods today than
ever
:
,k-.
\
.v.
.wA'v-'
v<-
/■>'
•
c,
•.
*; *
.
'
*
•*
*.
\
%
•
increased
production
endless.
-•'V'•
■\/
!;!v !;i.yyAAMembers •'!!'.<••• !
New York Stock Exchange
«y;:-v
Chicago Stock Exchange
more
before.
,
a
has been
Japan
succeeded by an increase, an up¬
wheels of
business are. "turning.
The same
thing is true of electric power
production. It is worth noting that
since VJ-Day, power output has
been running only about 8% be¬
low the peaks of the last
six
trend
that
the
means
'
Morris
These
increasing
of
signs
are
production—signs that goods will
be
in your
hands before long
There are also signs that the fin¬
ished articles already are start¬
bare
their way to fill up the
shelves in the market places.
The
trends
ing
-
Investment Securities
INVESTMENT SECURITIES
months.
Since 1924
141
WEST JACKSON BOULEVARD
'd CHICAGO 4, ILLINOIS
on
in-
the, vital metal-
working trades are a case in point.
Metalworking
manufacturers
make motor vehicles, mining ma¬
INC,
220 So. La
plumb¬
stoves,
ranges, furnaces, clocks, watches,
radios, farm machinery, tractors,
ing and heating equipment,
and
many
Se
distributors are
that
and
sell,
wires
EASTMAN, DILLON &
York
Members New
to
our
Correspondents
CO.
BAKER,
SIMONDS
& CO.
Members Detroit Stock Exchange
Stock Exchange
are
to buy.
eager
Chicago
op
Street, Chicago 3, Illinois
Company
curities
eager
consumers
Salle
Telephone State 4151
Direct
other articles. These are ar¬
ticles that
to
First
'k
'
•
and
machines
store
& Thact
Rogers
chinery, textile machinery,
office
V
Brokers and Dealers in
&
Co.
Mather
i
UNDERWRITING
Recently the Civilian Produc¬
tion Administration asked manu¬
'
DISTRIBUTION
•-
.
the m^tal-working
prospects for ship¬
ment of finished articles to the
markets. Summed up, these re¬
facturers
in
COMPLETE TRADING FACILITIES
about
trades
:
ports show
that manufacturing
activity
in
the
metal-working
trades is moving forward rapidly.
Some gains
in shipments were ex¬
pected by December; By
the mid¬
ANDOVER
1946-
LA
SALLE
STREET
CHICAGO 3,
COMMENTATOR
ILLINOIS
TELETYPE CG 1399
jA.
of production
otential that will make distribu¬
tion more important than ever be¬
is the kind
This
fore
as
ward
this
country
through
the
V'"
'
DIGEST of current events in the finan¬
+-
^
*
,
SOUTH
1520
shipments from
these firms are expected to be two
and a half times the 1939 rate.
Many forecast a further rise in
shipments for the last six months
of
v
\
WALL STREET!
.134
dle of next year,
•
THE
Members Chicago Stock Exchange
cial markets of
reviews
for¬
moves
SlIILLINGLAW. BOLGER
reconversion
period. For there is going to be
more
to market
in tomorrow's
world than there has ever been
before. Today, it is merely being
matter of fact to say that Amer¬
ican industry and agriculture and
>
*
'
r'
&
that appear
Co.
and/or
North America, together with
analyses
to have
of
situations
specific
exceptional investment
profit possibilities.
Corporation re¬
MEMBERS
ports. dividend notices and gossip of the day.
; CHICAGO STOCK EXCHANGE
,~.V!:v'
and.
CHICAGO BOARD OF TRADE
y
■
Edited
by
'
Louis
outproduced the world.
industry^ and busi¬
ness has emerged
from the war
knowing more than ever before
about how to produce efficiently,
quickly, and cheaply. The release
of atomic energy and the develop¬
ment of radar have' caught the
labor have
James
Burns
/
American
public
invagination.
But
UNDERWRITERS and DISTRIBUTORS
INVESTMENT SECURITIES
.
;
.
t
BENNETT, SPANIER 8 CO.
„
120
SOUTH LA SALLE STREET, CHICAGO 3
Telephone State 585Q, 5
.
,
.
'
; :
,
f:.';
>
■<
*' )
f
J
i
...
...
-
.INCORPORATED
105 South La Salle
Teletype CG 1070
Telephone Central 4274
Metal working
has been speeded up by the wideSpread use - of Tungsten; carbide
■.
...
•».# r
»
.«
»-1
it
r*
ft
t
t
*■*
ft
-
-
.
Investment. Securities
tolerances. *
I'
f 3
/■
there
developments less spec¬
tacular and not so widely publi¬
cised
that will
serve ^well in
peacetime.
Many ' hundreds of
manufacturers have work forces
that have been educated in the
techniques, of ; working to very
have been
close
!
Send for Your Free Copy
..
J I;
A.
Knies,
Loomis, Robert G. Rowe,
credit
clearly to register in¬
confidence
Dick,
Rowland
er,
and the general price level.
In the meantime the continued
seem
R.
Pierpont V. Davis, W. Lloyd Fish¬
of establishing a sound adjustment
between
railroad
freight
rates
improvement
Committee
Securities
—Fairman
prolonged period of bad
therefore,' should pro¬
credit crisis it would
no
activity.
about ' 16 %7 Moreover,
improvements
Railroad
of the
one
to produce
now
During the
war.
*
most effective
would
field
transportation.
turn out to be
may
the
>V-'i
;;'•
, Next,
car
loadings.
freight
There, too, the^ trend is upward.
The big dip that followed the
„
not
tion
*
productivity of agricultural labor
'
off
:ty
of our rail¬
of. domestic
importance
in
prevent the railroads from taking
their proper part in the restora¬
and
industry
American farm¬
geared
tion to about 60%
,
duce
business
course.
30 to 35% more than
drop in steel ingot produc¬
of capacity. By
a
to
%!!!•!'<?•
have
Advances
foreshad^r
in peace-
Time consumer
a
earnings,
con¬
live
tion
that
index
While
example.
Twenty-five
per
shrinkage was usual before
•••••
mental
roads
v;
for
early increase
definite
certain
doubtedly have an effect on rail¬
road expenditures for moderniza¬
only 5%.\
production is
From
before To
never
as
fat,
the
war,
but . socks have been
made for military use that shrink
only to fill orders. Now that war
orders are dwindling, an upward
cash
quality beyond anything pre¬
viously known. Take wool socks,
cent
■
ows
and
to
in
resources
the
the financial strength of
the railroads, today will tend to
delay a sound readjustment be¬
cause
the railroads are prepared
trol
tion, freight car loadings and the
volume of electric current.
^
Steel
first.
Steel is, produced
in steel ingot
and
of
account
on
railroad.
every
industry learned
fabrics
new
1930's
angles,
noteworthy. During the
textile
the
make
to
"promise well for the future. Let's
look at the trend in steel produc¬
-trend
been
war
,
that
•
.
and working capital of practically
in many cases super¬
raw
*
**"
unparalleled
Advance in textile manufacture
■
indexes
other
are
are
materials—plywood
plastics, for example. •'
is beiiig made.
/
day, we learn of in¬
output
for; the public
progress
1
of what
ior
'
T
(Continued from page 2727)
the
in
items have led to the introduction
little longer-time, but real
a
*
Railroad Committee Notes Further Credit Cains
Street, Chicago 3, 111.
,
_
Bell Teletype CG 1040
.
«
i%
•«-»»»
\
i
THE COMMERCIAL & FINANCIAL CHRONICLE
2766
with
Banking?
What's Ahead for Investment
a
business want lower taxes, less re¬
straints, more profits. Labor wants
higher
wages.
Politicians want
pleased and happy voters. Quick
and easy profits are giving inves¬
tors an unhealthy flush. Adver¬
tisements
seem
do
to
is
"This
trick.
the
around the corner.
Now
it's true we may get the
mumps next fall, but right now
.
speculation"
a
deflationary
over
concern
tendencies just
measles—and
exposed to
are
we
Everyone
in
vestment
U.
a
purchase
viduals
of
is
has
world
the
been
horns
of
,
>
m
Inflation
FOR 60 YEARS
7'
^
'
;
:,
Established
;
"'
'
1885
1
Government
lions.
pinned back, but now
speak
piece. We all stand to win or
lose. This country has the most
ears
ably
sorts
world.
■
No
one
budget figures but the danger
point to watch in this country is
the; over-all size of the public
debt and the will to pay it. There
are
85
million bond
buyers in
in the
deny it. He
man
can
produces more, deserves more, and
is
H. C. Speer & Sons Company
THE FIELD BUILDING
,
135 South La Salle
.
'
\
a
Street, Chicago 3
Telephone Randolph 0820
better all-around citizen than
this
globe. But he should
look inflation squarely in the eye
because
he
stands
to
lose just
like everyone else. Actual weelv
ly earnings have about doubled
since 1939. Real weekly earnings
have advanced about 50% during
that time. Inflation can destroy
those gains.
•
In suggesting the responsibility
faith with them
on
the
of
labor
nessmen
towards
V {MM£ MM---] i$MMMM;••
f
^
"J:* I
1 •,
«
f
*
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'
'
"
'
-
'''
.
t
salaries
dori't
We
anced
budget
year
to keep
remain sol¬
are
talking now in terms of
are
"Never." Our pres¬
unhealthy trend has been so
cles may mean
ent
long
well
with us
t'hink of it as
we
'yMMMiM:
1
•
/
i
*
; j '*
Municipal, County and
JOHN |JJ
\
' ' "
-
'
'
'
Members
School Bonds
-
.'
*
*
{- *
^
■
<
'
:
■
New York Curb (Associate)
N. Y. Coffee &
39 South La Salle Street
Phone Randolph
1
CHICAGO 3
3900
Sugar Exchange
Chicago Stock Exchange
-
Chicago Board of Trade
Teletype CG 540
NEW YORK
CHICAGO
/
231 SO. LA SALLE ST.
CENTRAL
14 WALL STREET
RECTOR
5775
2-0250
"
-
PARTNERS
'
/
John J. O'Brien III
•
Evans Spalding
Albert J. Payne
•
Treasury who really
reverses
the
trend will occupy a place in his¬
tory with Alexander Hamilton, He
will
the
need
He
which
gress
will
the
voters.
to
will
pay
need
among
Con¬
a
"No" to pres¬
groups and increased expen¬
sure
can
say
and
solvency in Government will
inflation and solve our'5fi¬
cure
nancial woes.'
'
fr1:
.
::
,
1 v
SEC
It
is
assumed
our
SEC
friends
Joseph M. Fitzgerald
•
like
to
be
headquar¬
near
ters. We know people want some¬
one to
ride herd on us. That .is
O.K., but wherever those herds¬
may
be we wish Congress
men
would
time
take
off
and
look at
what has
happened in 12 years to
capital in
this country. Certain changes are
badly needed and especially in
the flow of investment
registration
our
procedure.
'
Why is it small business wants/
and gets exemption from the reg¬
istration regulations? Why do the
big banks, the big insurance com¬
panies, the big buyers, and the big
sellers
of securities want and get
exemption? Why is there talk that
foreign securities should be ex¬
empted? The answer is: People in¬
stinctively avoid red tape, delays
and
bottlenecks.
Private
place¬
the easy road
Big buyers and big sellers
get together and by-pass the pres¬
ent over-complicated registration
procedure. Starting at almost zero,
private placement has mounted
has
ment
become
around.
1945 it will
ing the fate of nations, Churchill
is alleged to have said; "Put it
page," Yet we are required
to reach Mr. Average Citizen with
sales prospectuses one inch thick
and a foot long. No investor liv¬
ing or dead has*, ever read one.
A Churchill should rise up in Con¬
on one
'
*"
have
we
reach nearly half of all financing.
In dealing with matters affect¬
New York Stock Exchange
■
years
and mounted until in
O'BRIEN fUj CO.
.
bal
ancing the budget in cycles. Hu
man nature being what it is, cy¬
busi¬
set
we
and
have had an unbal¬
since the, second
of the Hoover administra¬
Even conservative economists
stage.
tion.
should not forget higher
executive
(ftantpamj
inflation
country.
vent, the matter of a balanced
budget must get past the talking
.
,
gUftmtter
If
his counterpart in any other coun¬
try
.
to
ficials
debt is now 263 bil
By July 1, 1947, it prob
will reach ; 300 billions. All
of things can be done with
Our public
his
laboring
15
passing from one emergency
another. The Secretary of the
Philadelphia will soon be mov¬
ing back to Washington. Most of¬
Solvency and Thrift in
is the time for every man to
effective
For
been
in
mention labor for fear he will
get his
'
..
normal,
1945
Government ditures. ; The debt-cutters must
pull in its beat the tax-spenders to it. Thrift
•
.
to
should
on
(c) The average banker is afraid
MUNICIPAL, COUNTY AND SCHOOL BONDS
do
wages
and get some
the shelves or the takehome pay won't buy a thimblefull. Appeasing everyone defrauds
everyone,
especially those who
live on wages or fixed income.
where
Underwriters and Distributors
fellow
on
goods
cannot: flourish
production is great. If we
can eliminate work stoppages and
get our plants into full opera¬
tion the inflation problem will be
solved.
J'.':.'.-"
s
V;.
(b)
the
down
Labor
debt.
for inflation,
cure
other
the
see
whittle
bonds by indi¬
opportunity for the
a
is
part, but right now holding
against inflation and pay¬
ing off the public debt are the
two pressing financial problems
Capital, harassed as it is with
taxes,
must
take the rap and
war
an
investor and
Serenity
the line
Bond—the
Government
S.
wages.
important thing in a
in a nation. Everyone
his
danger
press
or
to
likes
along with the crowd. There | this is our present problem. Let's
in this situation. The get over the measles and then
take on the mumps.
storm signals
are out. Inflation
The following points relate to
feeds on appeasement.
inflation remedies:
'
Strangely, fears for the future
(a) For 150 years the best in¬
run
in two directions. Some ex¬
is
lose sight of the
whole. Capital and
may
reduced
most
family
goes
^Continued from page 2723)
position he
picture as
the
Thursday, December 6,
Julian A. Acosta, Ltd.
;
>;Nf
gress
SEC*- and sgy
page." Getting t
the
in
or
it
"Put
one
on
private capital back to work is ia
big job. There are 85 million in¬
vestors in this country. To reach
them we must eliminate red tape,
bottlenecks,.and the reams of fine
print which even the Philadel¬
phia lawyers never read.
;
Skimming the Cream
The
1929
experience left many
the daylights out
scared
It
scars.
people about investments and
drove this country into a "riskof
Everyone ran to
help. Bank¬
mighty oath they
would not take chances with their
economy."
less
WEBBER- SIMPSON & CO.
INCORPORATED
Government for
the
swore
ers
209 south la salle street
or
that of anyorie
help them. They made - a
firm resolve never to permit the
banking machinery to again be¬
come a gambling device.
/
'
It may well be we have gone
capital
own
else,
Investment Securities
chicago 4
a
2011 South Xa Salle Street
so
too far in another direction.
is
CHICAGO 4
tendency
a
There
the part of the
on
experienced men in financial
to get in a storm cellar
and pull the cellar in after them.
most
circles
Teletype CG 1268
Telephone Andover 1811
the cream may ap¬
safe and pleasant occupat h i n g like shooting '
mackerel in a barrel. It may look
Skimming
pear a
tion—s
like
INVESTMENT
t
o m e
sure
profits
deals,
safe
on
something must be added if
the vast reservoir of idle capital
but
SECURITIES
this
in
country
properly.
work
morrow
is to be put fo
The man of to¬
is the one who does some¬
risks.
suggested bankirtg
capital. That is no
thing about calculated
Announcing the Return
to
■
Lt. Cmdr. De Witt
..
•
■'
•"•••
V
•'•••
Lt. Maurice A.
i
Davis, U.S.N.R.
and
.•
„
Active Business of
William A. Fuller & Co.
1
■/'
Zollar, U.S.N.R.
209
S.
Wtnlsri
LA
of CLcafO Stocl £xcLan^«
SALLE
STREET
*
CHICAGO
It has been
needs
more
doubt
true
and
between
4
strengthening. Deposit banks have
no
Tel. Dearborn 5600
Welsh, Davis
and
Company
135 SOUTH LA
SALLE STREET
CHICAGO 3
Teletype CG 146
both investment
banking. The ratio
capital and deposits needs
for
deposit
more
capital
now
billions of deposits
in
1929
posits.
have
to
59
billions
meet
150
of
Investment bankers
enough capital for
present
more
with
with
than they had
de¬
may
their
but if they are
needs of the future
volume
the
capital will be
required.
;
v_;
Volume
ir
..The issue in the field of foreign
is clear. > Some insist we
.
finance
maintain in this
should attempt to
shape. Some of the
a flaming economy inde¬
pendent of foreign nations. Others
can't
it
say
done that way.
jnust send our
be
believe
They
we
dollars abroad just as we
No
soldiers abroad.
ously
months
y/■
;
we
this
(a) We do not have unlimited
funds, but,,> on the other hand,
there is no marble game if one
timidity
is
not
for
synonym
a
caution.
The
wise
man
or
wars.,
PRESIDENTS
PAST
IBA
.
1041-42
1943-44-45
1U42-43
.
;
-
if
it would be:
vestigation but let's be construc¬
■
courted the bor¬
unwholesome and un¬
rowers, an
the
More loans were
natural business.
really needed or
wanted by responsibie people in affected countries.
Plunging people further into debt
did not provide the answer.
made than were
in many cases
.
pay-off
ranged.
is not
ers."
was
0
,
(c)
the
■As
it
took
j
chin.
the
on
v
-
job
.
from long
Most-v other
forecasting.
very
rapidly.
know
it
some
time
Business
is having
a
the
in
as
we
rather lone¬
world.
Still,
has worked best in
and we < think it will
the future irrespective of
system
our
permitted to look at
Up to now the Gov¬
has shown a disposition
the
picture.
,
past
work in
what other
private showing for tech¬
As time passes, and
conditions stabilize, foreign busi¬
ness
should get back more and
more into private hands.
John Clifford
Folger
countries do.
;
banking never had
,
good
more
Stakes are tremendous in
foreign finance, but the rewards
can be truly great.
Make no mis¬
take:
Multilateral trade among
had
greater
had
the
more
to play—never
opportunities—never
venture
capital
completely to itself*
There
seems
but
cards
of
field
to be a
Enyart, Van Camp & Co., inc.
100 WEST MONROE STREET
"
period of turbulent
private
expanding
business
'
When we consider the Bretton
motion
things already in
credits
We
cast.
may
are
isolationist.
of
longer
the
—
DAVID A^IIOYES fr
reach, or even
The die is
no longer financially
England, the princi¬
pal international banker
time
Queen
Stocks
is
Elizabeth,
able to carry on in
Uncle Sam is stepp.ng
~
Bonds
■yvV.;—--.v. v-:..-'f
since the
ro
So.
208
■*
1
La Salle
that
'
uy.-.•
New
.
A; New York Curb
Winnipeg Grain
:
Exchange (Assoc.)
Exchange
Branch
'
up
own
Offices
strings
are
tied
intended
and to help
'/:] In
our
:
'
Board of Trade Building
Union Station
SINCERE AND COMPANY
INDIANAPOLIS, IND.
SO. CANAL ST.
sent free upon request
Monthly Stock Summary
.i
'
.
MEMBERS OF
/
New York Stock Exchange
and
at
x
one
always
all Principal Stock and
,
-'
"
here and there to
but
another,
Chicagdf Board of Trade
Chicago Stock Exchange
Chicago Mercantile Exchange
It starts propping
safety.
situations
rationed
V
begins to fear for
Commodity Exchanges
,
(
'
Credit
safeguard its own house.
is
,236
SINCE 1932
'* V-'-'V '.'''*•
closer,
[disaster comes closer and
its
Chicago
'•
Members
Stock Exchange
York
/'•
Street, Chicago 4
STAte 0400
procession.
: This country is in much the po¬
sition of a strong bank in a fi¬
nancial crisis.
The first impulse
is to say "Let the weak banks
fail. It serves them right." When
the strong bank
BROKERS AND DEALERS IN
Commodities
-
' '
the
.
COMPANy
★
★
OVER-THE-COUNTER SECURITIES
h.to
John Bull's shoes, fortified vitn
little experience and that mosJ/
bad, plagued with an infailo icy
complex, and exhibiting hin^wli.
as
a
reluctant: and
somewhat
sulky leader pushed in to head
role.
T-Jetype—CG 965
Telephone—ANDover 2424
★
billions.
20
exceed,
y.,
the program for the
Woods Plan,
total
■
3
CHICAGO
Export-Import' Bank,
loans to
Britain
and
other
countries —
[
Joim S. Fleck
PI. Whipple
Jay
Investment
(e)
•
-
Everyone shies away
to have
result, many original in¬
got out or were forced
the bottom.
They really
at
out
j'
tomorrow."
and
nations, including England, have
been moving
to * the left, some
nicians only.
dollar. >;•
a
vestors
;1
today
range
Foreign finance, however,
just a job for the "do goodBusinessmen
and bankers
ernment
■
the
on
_
of
should; be
When the' going became
hard,
borrowing
countries de¬
faulted and instead of servicing
their debts used the money to buy
back their bonds at a few cents
; •
' -1
risks.
(d)
rates were ; high;
not well ar¬
1
*
' '
Interest
[(b)
the
the
but the
world,
and^ concentrate on the
tive
fact will not
nourish the investor who loses the
money" he
puts into a rubber
plantation. ' For the present our
Government must assume most of
Lenders
'•(a)
permitted one thought
"We do not fear in¬
were
we
point
with
and
CHICAGO
some
Rawson Lizars
These strings
to protect the lender
to it.
135 SOUTH LA
& Co.
SALLE STREET
the community.
CHICAGO 3
present situation what
propped up first? We
needs to be
•,
all know the answer. It is Eng¬
land. The need is large and im¬
portant.
r~
better to have a
weak one. As
however, we well know
to get the collateral, and
It
is
strong ally than a
bankers,
the time
Markets In
WISCONSIN
••
Underwriters and
■
•.
Listed and Unlisted
Stocks and Bonds
National Underwriters
\
Established
Membera principal
10 South La
•••.V..LU
NAPOLIS
—
.
.
•
•
j
.
.
ISSUES
Municipal Bonds
Fidelity Fund, Inc.
Paal I-LDavis & (so.
i
r
—
/ v *
Distributors
■
ILOBWa & ©@
1916
225 E. Mason Street
Stock Exchanges
MILWAUKEE 2
Salle Street, Chicago
CG 405
CLEVELAND
■
Bell
1
Telephone
Teletype
Milwaukee
Daly 5392
55
Chicago Phone State
ROCKFORD
L
the
institution is the one that
weighs the chances and decides
accordingly.
It
is
that policy
which
wins
battles,
and
wins
wise
barrel, to go back 25 years in the
relation between business and fi¬
nance.
Business
being
already
numb from filling out blanks can
no
doubt survive. The advice of
bankers has not been sought, but
.
...
Itwists the tail of bank¬
It is interesting to speculate
on what may happen next. When¬
ever
there is a lull, it is a safe
bet someone will try for the head¬
lines. Rumor has it there is one
more
investigation
left in; the
'For background
we have.1 the
boy has all the marbles.
;
We'll never be paid back
depressing losses- encountered on
foreign loans of .the 20's. Amer- unless ~ we-..are willing to buy
ican investors are inclined to [the
from abroad.
/
•;
dismal view. In recalling the mis-*
y (c) Right now foreign lending
lakes of the past, the following
is too risky business for individ¬
points stand out:.
' - '•
: ' , ual investors. Rubber may save
.
should
exceedingly busy ones, inter¬
esting and profitable for all of us.
There is no bomb-proof theory
of investment. On the other hand,
ing.
finance,
international
should remember:
for
course
unless
complete
is
ye^r
someone
com¬
thing. We must be sympathetic
but
sensible.
In
charting our
other finan¬
the
in
debated
.ahead,'
be
about
unemotional
pletely
be more vigor¬
subject will
cial
to
time
the
is
Now
sent our
-No
indicated.
are
country
Future in Banking
major features
ahead. The years before us
be
of peace.
point to the paths
A plan
taking
after, the loan is made.
for
helping
England is
stabilized currencies
and
nations
before, not
strings, is
the
tie
to
Foreign Finance
,
2767
& FINANCIAL CHRONICLE
THE COMMERCIAL
Number 4444
162
0933
THE COMMERCIAL & FINANCIAL CHRONICLE
2768
in
up
have
Bright Prospects for Utility Investments
(Continued from page 2698)
has increased the cost to the cus¬
has
tomer
consistently
gone
downward, both through rate re¬
ductions and the operation of step
rates.
/
The mythical average cus¬
430
cost
to himself •of 70 per kwh.
Last
year
he used 1151 kwh. at an
average cost of
per kwh. In
a
recent
12 months' period the
usage
reached
the
1200
kwh,
mark.
Every year since this se¬
ries of figures was started in 1926
shows
higher usage and lower
average cost,
as compared
with
the
preceding
year,
with the
single exception of 1933 when the
usage went down only 1 kwh.
tomer
kwh.
in
in
the
1926
country
at
an
used
average
Contrast the downward trend of
the
of
cost
trend
of most
very
indeed.
has
electricity
been
more
items.
The
much
of
trends have been
term
The
growth
record
hard
the
depression
a
years
of
the
be
will
as
commercial
about
busi¬
one-fourth;
as
business.-
In
domestic
companies have been
pressed to get back a new
cases
for
for the
old
an
plants. ■'•
During the
has contributed
'v
business
electri¬
city they have been selling to war
'-vX-'
war,
/;
com¬
panies could not promote their
domestic and commercial business
Investment Securities
SAINT PAUL 1
sales
enter¬
activities.
^
r
I have been interested in look¬
ing
over
made
with
number
a
by
of
surveys,
connected
people mot
the
utility industry, as to
what people are going to spend
their money for when merchan¬
dise
is
again
freely
available.
These
indicate
surveys
The
enues,
ready shown
to
decline
operating rev¬
of oil has al¬
price
drop and is likely
The price of
a
further.
coal may not come down quickly
but many companies have com¬
plained about the quality of coal
they have been getting during the
and
war
if
they will get some relief
quality of coal were
better
a
available
even
not
down.
come
if
the
price
appliances which will bring
load
to
the
utility
companies and many of these use
new
a
great
items
deal
of electricity.
Such
ironing machines, room
coolers, electric bed blankets, and
home freezing units have a very
low saturation
now, but will be in
demand and will add greatly to
the domestic load.
Some utility
companies
predict
they
will
as
double their domestic load in five
crease
and
some
it 50%.
say
they will in¬
Whatever the per¬
centage is, it will be big.
More. Lighting
are
of
going to be higher
lighting in
your
in
and
7-'
the
Inci¬
stores.
does
which
they
will
able to install
be
equipment
usually
should
I
very
strong financial position in which
the utility
companies are today.
has
There
tion
in
been
the
a
of their
ratio
reduc¬
marked
debt
to
operating
revenues;
in
other
words, they have increased their
business
substantially without a
corresponding increase in bonds.
The companies are now charging
much more depreciation than for¬
merly and this helps finance con¬
struction requirements. \
The SEC have done
to
promote
a
great deal
strengthening
the
financial
spects, the utility financial struc¬
ture of today is, generally speak¬
less electri¬
use
city than the incandescent bulbs
produce the same light but the
interesting thing is that the quan¬
tity of fluorescent bulbs which
to
expect
in
sell
to
structures.
In
many
ing, very much stronger than the
typical one of a few years ago.
Furthermore, many questionable
practices of the past are now en¬
tirely impossible under present
■"
'• v ;
day regulations.
and
highway lighting is
another promising fields because
safety promotion programs point
out the need for better lighting.
Probably one of the outstanding
things to take into consideration
mean
that all the money involved
been
electricity than customers in the
cities.
big
The net increase will be
increase
domestic
in
and
commercial
Municipal Bonds
Labor
a
the
fields.
Expenses
Daylight saving has
and this will
in
business
mean a
now
ended
definite pick¬
which
Income
subject to the E. P. T.
subject to normal
now
becomes
and
surtaxes.
elementary
to
That
some
may
but
been
I
seem
have
surprised to find the errors
people have made in thinking the
excess profits tax
can all be sal¬
vaged.
Furthermore,
in
some
cases
it must be depended upon
to give a cushioning effect for any
temporary loss of business. How¬
ever, in
a great many cases, at
least, a modest portion of what
had been going into E. P. T. ought
chance
there
to
f
pick
in
their
cause
and
"excess
&
Co!
First National Bank
St. Paul
Bldg.
1, Minnesota
,
a
.
,
V
Operating
Companies
of
the
fruitful
fields
to
watch .is the
break-up of holding
companies and the coming of op¬
erating company stocks ,(which
have
been previously owned by
holding companies) into the
hands of the public for the first
the
I
think
there
lies
of
one
outstanding opportunities of
the next few months, both
for
dealers and investors, to make an
turn
and
Experience
v
stocks
kind
reasonable
a
shown
out
come
distribution
a
definite
shares
get
has
which
of
rather
that
in
this
follow
cycle.
When
a
the
into the hands of the
come
public for the first time the
name
is unfamiliar and it takes
while
a
for dealers to work up enthusiasm
and go out and place the shares
with
the
people
who
going
are
to put them away for long term
investment. I need only mention
few names to remind you of
profits which have already been
possible.
Such stocks as Phila¬
delphia Electric, Public Service of
a
Colorado, Idaho Power, Delaware
Power & Light, Central Illinois
Electric & Gas and Empire Dis¬
Electric
they
Of
if
course,
through
the
rights
chances
stock
or
greater
are
comes
by distribu-C
for
immediate
than
the
if
stocks is sold by competitive bid¬
ding.
.
ahead
there
seem
to
considerable number of these
a
stocks
looks
the
on
if
as
horizon.
Pennsylvania
December,
will be
an
Power
and later -on, there
outright distribution to
National
Pennsylvania
some
stockholders.
stock
This
than
more
others has both positive and
negative features but if these are
weighed and recognized I feel the
stock promises to be attractive at
State and
Municipal Bonds
First National
Bank Building
Saint Paul t, Minn.
around the price at which
are
Caldwell Phillips Co.
FIRST NATIONAL BANK BUILDING
expecting it
Later
Light
on,
and
come
people
out.
Carolina Power &
Birmingham Electric
will be distributed to the National
stockholders.
SAINT PAUL 1, MINN.
,
It
& Light common stock will be
offered to National Power & Light
stockholders for subscription in
the
Stanley Gates & Co.
*
selling for sub- "
than the prices
were first
avail¬
are
more
which
be
Park-Shaughnessy
profits" is strictly
■'
;
One
regulated
are
The Stocks of
>
util¬
as
concerned, be¬
are
rates
misnomer.
Looking
SAINT PAUL 1, MINNESOTA
business than
other spots.
up
many
ity companies
new
pUILDING
a
with better than average
Its proper¬
is
bargains
FIRST NATIONAL BANK
your
seeking
are
P.rofits Tax is false, as far
able.
;
well worthy of
you
;
Public Service of Colorado has
been paying an E. P. T. Of course,
the whole concept of the Excess
tion
Municipal and Corporate Securities
been
are in Texas and eastern New
Mexico where there is a lot more
at
Investment Securities
f
more
has
ties
out
Harold E. Wood & Company
it
•
possibilities.
stantially
Underwriters and Dealers in
than
T.
if
company
trict
/
has
for
Southwestern-r Public
been earning around
<
P.
growth
profits tax does not
of the
earn¬
$2 a share and
aside over $5
company
excess
me
stockholders.
another
a
warn
Let
for
is
E.
"
Public
$1.85 but has been providing
honest
has
electrification
T,
profit.
but they have been increasing at
night due largely to inadequate
lighting of streets:and highways.
still to be exploited and the
farmer is a much bigger user of
P.
Service has
Excess Profits Tax.
you that the repeal
the
immediately becomes available
Rural
E.
setting
is relief from war-time taxes, es¬
pecially
stocks,
the
The rate of accidents has been cut
down somewhat in daylight hours
field
around
been
time.
Reductions
Tax
unlisted
re¬
few^years for residential
while showing a sub¬
percentage increase, still
promises to be only a very small
fraction of all light bulbs sold.
ing
of
dentally, I would like to dismiss
the fears many people have about
fluorescent lighting.
To be sure,
fluorescent bulbs
the
is
war
down the cost
;
of
Service of Indiana has been
attention
of power.
mention
the
.
appropriate 13<z) of every dollar
while Peoples Gas & light & Coke
set aside 180.
To mention a few
it and
erating equipment during the
now
Pacific Gas & Electric had
to
brings
thermore, many companies which
have been unable to get new gen¬
new
alone.
earning for its stock. In that case,
the company has had non-recur¬
ring credits so they have not ac¬
tually been paying the E. P. T.
but have reported earnings indicating provision necessary with¬
out the special savings. Incident¬
ally, Southwestern Public Service
had to
Fur¬
have
-
particularly hard hit. One of the
outstanding examples is Southern
for
The companies now will be able
shut
down
their
high-cost
plants
to be available for the stockholders.
Some companies have been
California Edison which, last
year,
had to appropriate over 20% of
only ^every dollar of gross for E. P. T.
represent
about 15 to 20% of
people
brand-new
Street
U. S. Government and
companies
operate to meet peak loads.
MINNEAPOLIS
of Saint Paul
Labor expenses will re¬
high but I want to point out
appliances in a big way. In some
cases the demand may
be, for re¬
placement but there are a lot of
stantial
The First National Bank
of
war.
main
to
business,
Investment Department J
out
will be in the market for electric
McKnight Building
1
industrial
prises, appliances will be on the
market in fairly short order and
most of the utility companies have
definite
programs
for renewing
the next
Building
growing
expenses
utility
of
manufacturers
Endicott
the
will
extraor¬
many
conversion
homes
;
is
situation
companies
plete change because with the re¬
There
,••••'
The
from
that the payroll expenses of most
standards
Kalman & Company, Inc.
That
load.
relief
dinary
the verge of a fairly com¬
now on
years
appliances) have
been off the market and the
high investment standing for
public utility securities.
as
dollar
with
freedom from serious setbacks in
to
;
and
much
sensi¬
some
same.
other major property
industrial
kwh.
ness
tive, to the business cycle but^the
long
'
or
reduced " but
serviced at
a very' small profit.
Speaking in
general terms, industrial business
yields only about one-third
as
In¬
dustrial and commercial usage
sion lines
companies
and this stands
favorably
aggressively.
Utilities
fairly complete
agreement that the past record
is
an
impressive one, the next
question is "Where do we go from
here?"
It is especially timely to
raise this question at the moment
when reconversion problems and
post-war markets are universal
topics of conversation/ In the
first place, utility companies face
no
physical reconversion prob¬
lems.
True, they have plenty of
readjustments to make in policies
and programs but not one minute
has to be spent for changing over
generating equipment, transmis¬
much of this has bgen
the
other items in the
household budget
out
with
electricity
for
Outlook
The
If I may assume
Thursday, December 6, 1945
Electric has
proved,
Columbia
a
will
Gas
plan which, if
call
for
&
ap¬
Cincinnati
Gas & Electric and Dayton Power
& Light common to be offered to
the
of
Columbia
these. will
stockholders.
be
„
very
Both
well
re-
/
iV oiume. 1621"
—
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
ceived and will be desirable
chandise.
mer¬
.! "
I ■'
Engineers Public Service has
filed a plan contemplating offer¬
ing rights to buy Gulf States Utilities and an outright distribution
of El Paso Electric and Virginia
Electric & Power. American Light
& Traction is working on a dissol lition plan
which will bring
-Michigan Consolidated Gas, Mil¬
f
In Attendance at IBA
.
'
-
waukee Gas & Electric and Madi-
Gas & Electric
•„ son
the' public's
common
hands
for
the
into
first
( time. • These are by no means all
that
market
vholding ^ company
been
prices of
.
: securities. ;has
harrowing, but;
the other
on
^Slezak, G. Edward
Smenner, Harry :
'
V1!
Smith,
Smith,
Smith,
Smith,
Smith,
Dudley C.
George W. r
H. Laird
•(
J. Ryan Z
Lome CZ
( Within about a month, Asso¬
Z
ciated Gas
be
Electric
&
will
bonds
for stock
Utilities
•.
a
very' attractive medium for
th^winvestor wishing a combinZ
ation of good current return and
potential appreciation of modest
proportions,-The underlying comC
-
New York
'.
Song, Elmore
-'
among the. best, in the busi¬
Middle West Corporation is
are
another
which- appears
stock
to
be selling still below its break-up
value.
Many of the
preferred
Stocks
holding companies like
American Power & Light, Stand¬
ard
Gas
&
Electric, Common¬
wealth & "Southern and others still
sell
of
(v
Chicago
be
than
less
for
realized
course.
will
due
in
them
for
.'
:WashingtbnV(
Lincoln National/Bank
Cincinnati
Chicago
^ Chicago
Northern Trust Co.
J
.
Stevenson, Robert 3rd
Kf.
Atlanta
'
The
<
outlook
common-
having
panies
for
some^of- the
of
holding com¬
stocks
of them
is not
because
there
preferreds ahead
quite so clear cut
has
been rather
extravagant .speculation in some
particularly those
that come in the low-priced field.
of these issues,
These should be examined
with
fore
much
care.
v
there^
-f f
Not. all holding companies - will
v-
break up and among these
Light
very
Strader, Ludwell A.ZzZ
Straus, Frederick
;
Streat, Hearn W.
United
these
what
.
,
-
the
have
stocks
'
■
,
Obviously,
about
want
you
cannot
to
.
-
and
.
never
Edison
of
indiscriminate
For
of, New
.York
in
& Power appears to have favor of mores promising situa¬
interesting possibilities. This tions because this company has
will remain in control been unable to show "much in¬
group" of. integrated proper¬ crease
in
'its
earnings,, before
a
lic
-
v-
-
New York
ii
to
a company can¬
a
up
: pass
size.
a
Denver
situation
I have
Boston
Savings Bank
Z z
SymondSj B. Shapleigh
Chicago
Chicago
Columbus
F. S. Moseley. & Co.
V
Boston
,
,+rK
'w*'
Tabkej'c
,
Taussig, Garfield J.
W. H. Newjoold's Sons &
Taylor, C. Newbold Z(Taylor, Harry A. *. %%. Ranson-Davidson Co.
*Dempsey-Tegeler & Co.
Tegeler, Gerald
•, * z Z
Tegeler, Jerome F.' Z>;. Dempsey-Tegeler & Co.
Thayer, Baker & Co.
Thayer, Albert R.
Lehman Brothers
Thayer, Robert
•
Albert
Theis & Sons
Theis, Harry ■" - ■;
Thoburn, Theodore • Z -"Hayden, Miller & Co.
Thorsv J.. Em ersoir, ^ r Z Kuhn, Loeb & Co. vz-vV'1
Thorson, Reuben
-Z Paine,Webber, Jackson
>
»
Mr.
;
./-• '•
z
/
-
* '
.
Wichita
.
("(*'
*
;
St. Louis'
"
•
St. Louis
:
-
New York
-
St. Louis
•
'
:
Philadelphia
Cleveland
"Z ;
New York
-
Chicago
z :-
.;/*•
A. G. Edwards & Sons '
"Z
St.Louis'-•'
;
z
Z/ (--- Pittsburgh - •
Robinson-Humphrey Co. -' ( Atlanta Z-* Z",New York
Braun, Bosworth & CoZ ' ^
New York
Cohu & Torrey
Z
Thomas & Co-.-
Tompkins; Henry B." z
Topping, James D.
Torrey, Clare M.
Treuhold, Eugene
♦Denotes
*
;
Co. Z Philadelphia"
.
...
Z
..
^
' !Z Z Chicago
Taussig, Day & Co.; -Z'"z, ",V St. Louis:
*
Tripp, Jerome C. L.
*Trost, Milton Si
Trubee. Frank C., Jr.
y.
1
R. S. Dickson & Co.
'
0
Z
r
.
L.F. Rothschild & Co.
New York
Tripp & Co.
New York
Stein Bros
;
•,
& Boyce
Louisville
Z
Buffalo
Trubee, Collins & Co.
'
and Mrs.
(Continued
on ,page
2770)
Piper, J affray & Hopwood
lot of small;
and I,think the field
has real
STOCKS—BpNDS—GRAIN
COMMERCIAL PAPER
^ '•
New -York
Members
Z
Stock
Exchange
and
'• -Z;-Z'-'-r--.
'''Z^'/Z
principal
other
^
Z>'
Exchanges'
Z
Z:
:
St. Paul
Minneapolis
promise ih the months which die
just ahead. ;•,
•
, '
.
.
.
ties7 in the the middle west.
Chicago
-
Sullivan & Co.
•
Little Rock
City National Bank
Lowry Sweney, Inc.
Tilghman, Allen B.
Tomasic, A. E.
•. (-: z
companies
and Z have
operating
great respect for the management,
which many of them enjoy.
Z jz
Z Summarizing, I would say that
the utility picture is one which
deserves very careful study and,,
consideration on the part of both:
the dealers and the investing pub¬
company
.
Lynchburg
because of
been familiar with
example, I hav.e been consistently
suggesting the sale7 of Consoli¬
dated
Chicago^ ;
merely
»-
<.
be
.;.
z?;-
Chicago
Chicago
Harris Trust &
:/(
Clark
\
Mason, Moran & Co.
Hemphill, Noyes & Co.
Whiting, Weeks & Stubbs
Walton, Sullivan & Co.
& Curtis
Chicago
this, it does not speak well
ZV'(z
While they are not appropriate
for
institutional
purchase, / the
stocks of many small operating
companies have a great deal of;
promise and I would urge you)
-recommendations.
these
•
for its vitality.
talk
to
better -known
tion only a few.
You
(
not do
higher-grade stocks, such as Com¬
monwealth Edison, Southern Cali¬
fornia Edison, Pacific Gas & Elec¬
tric, American Gas & Electric, and
Delaware Power & Light to men¬
in
Minneapolis
New York
r
Sydney
,
;
7
■'?
T
New York
g-
Federal taxes,
with them
offer.
-
(
-
Mrs.
if they would sit
and show them
favor
'•
r
(.Z-
Chicago Z7
New York
-
'
Scott; Horner & Mason
Straus & Blosser
New York
'
.' ; r
.
Blair & Co.
•
Sweney, Lowry
John Nuveen & Co.
business and do their institutional
a
Z
Swazey, Roswell B.
;'
; v
Equitable Securities Corp.
:
Stubbs, John O.
'"Sullivan, Dabbs
'"Sullivan, John J.
Sweet, D. M.
•
Albert' T»,
.
Chicago ;
Fenner& Beane
^ i
v
z
Chicago
Hirsch & Co.
.
Stone, Fred D., Jr;;
just
The Shares of Holding Companies
.
Stirling, Louis JZzZyZz
Stitzer. Raymond D.
John C. Maxwell;
E. H. Rollins & Sons
Bacon, Stevenson & Co. "
Investment Bankers Assn.
•
;
Merrill Lynch, Pierce,
Fenner & Beane
Kuhn, Loeb & Co. ~
z Harriman Ripley & Co.
* H. M. Byllesby & Co.
Stewart, R. McLean.
f
Stuart, William R.
Sturtevant, J. C.
i V;
Chicago
:,
Z First National Bank
'"Stevenson, Gethryn C.
clients
.
.Topeka ;;' Z :
Dire9t'orofReconversion;->
-
down
.; Z-ZZiz (Zz;
•:
; Zz'Z*
probably
J
1
New York'1 '
...
New York Reynolds & Co.
Staley, Thomas F.
Starring, IVUSon.B., .Jt3 i:G'raham, parsons & Co.
v; ^New.YorkZv
Boston "
Stearns, Philip M,?->.'•/;V- JSsta-krook•& Co.-. - ;
i ,V"
;
Glover & MacGregor
Steele; Harry; J.
>Z
( ;
' Pittsburgh (
'NewYork
New
York Hanseatic Corp.1
Steindecker, Otto HZ (,
New York
Chase National Bank
Stephenson, Edwin A.¬
( New York
Stephenson, F. Kenneth -.Goldman, Sachs & Co. 1 ^
Chicago
•Stern, Russell T. - A ^ "• Merrill Lynch, Pierce,
. :
Mr. and
f
.
New York ZZ' !
John J. O'Brien & Co.
,
♦Denotes
'
•
New York
Z/z Goldman, Sachs & Co.
Stillman, George Hz
ness^
'
PENNSYLVANIA
E.
Chicago t
;
-
Cleveland /^Electric
Illuminating
'
;::r ?
;
,
"'Stewart, Percy Ml A
-.
'
!■■
■
,' V i
•
panies in this picture, like Union
Electric, Company
of * Missouri,
Wisconsin -Electric Z Power
and
t
■
New York
;
is
f
;
ENGLAND
Chicago
>'
Nashville '
.
Sfnith, Solomon B, ; ( Northern Trust Co,
Smith, Weston '■■y'Yr?ff' Financial World 'O (•'
;
Smucker, Otto
; ( i .(; Chicago Sun.- j;r-vP: '•}. ■
;
Bros. & Hutzler' i
SmutpyrRudolf^- ; ■ y --/Salomon
Snow, Warren Hi#**.?; > •' E. H. Rollins:& Sons
;
- ^»;
Enyder, Jack B. %Zz-; Estes, Snyder & Co; /
Springer, Charles G.
Public
NEW
ZZ Chicago ;:Z Z1
;
earnings and will be very attrac¬
tive/Some day the process may
be carried a step further and the
>
YORK
Chicago zz.
Chicago 'J »
>.
•
'
Smith, NormanP.v
of Gen¬
Corp., the
successor company in reorganiza.tion.
This stock will have good
exchanged
:
Investment Bankers Assrl.
Equitable Securities_Corp.z Z
.7':; ( 'A
'
i
(
Zzy Harvey Fisk & Sons
Merrill Lynch, Pierce,
/ '
Fenner & Beane
(Merrill Lynch,Pierce,
:;v\ ' Fenner & Beane
'
.
(;( United Press:
4v'
Spalding, Evans
Spaulding, George F.
Speas, J. W.
■ ■■■;
Spink, Harold H.
eral
,
NEW
s
/*■' First Securities Co.
Sohn, J. Edward, Jr.
-
r>
"
.
y
| band^theTimV Vl?rhent is' growing ;:Snyder,;Jphn:Wiz£•(*.■
Zmore favorable.
t
Baker, Simonds & Co.
..
Detroit
First of Michigan Corporation New York
Harriman Ripley & Co.
New York
Loewi & Co.
;Z\
;' Milwaukee
,
.Values, and the
IBA GROUP CHAIRMEN
Meeting
(Continued from page 2760)
Simonds, Ralph W.
Sipp, Paul
Skinner, David L. r
coming .but they repre¬
are,
sent a fair sample.; ,
\ incidentally, " it is possible to
anticipate these break-ups by pur¬
chasing holding company stocks.
.(The spread between the break-up
S
2769
•
>
•
,
Pro-
forma earnings filed as an exhibit
with the SEC show that when
all
transactions pertaining to
tion
and
refinancing
completed
should
earn
this
ever,
normal
integra¬
have been
C. S. Ashmun Company
this
common
stock
$2.33 per share. How¬
was
based on a 500
estimate
surtax
and
of
Minneapolis
arfd
for
38%;
.
The
estimate
probably
should
therefore
be
share than $2.33.
Just recently,; one part of the pro¬
gram was announced, viz., plans
for; ;refunding
debentures
with
low rate bank loans and the stock
nearer
$3
per
jumped two points.
are
laid
were
in
out
this
wait .for- the
as
:
case
j
' '
'
! r
STATE AND MUNICIPAL BONDS
1212
FIRST
LINE
NATIONAL-SOO
BUILDING
MINNEAPOLIS 2. MINN.
lis SOUTH
FIFTH
STREET
MINNEAPOLIS 2,
MINNESOTA
j
they
it. is foolish to
which
should not overlook is
as
((Z
,
j
dealers
C.
,
Ji
presenting
merits of public utility equi¬
ties to institutions and
private' in¬
vestors who have previously bought
.
.>
,
steps- to happen beL
Another ( field
the
UNITED STATES GOVERNMENT,
)
r
When plan's
clearly
fore undertaking buying.
|
Z
INVESTMENT SECURITIES
the bill that passed Congress pro¬
vides
FIRST NATIONAL BANK
priniarily "(bonds ; and preferred
Stocks, Many such" investors are
under pressure to keep up their
income and will welcome the op¬
portunity to put some money to
4%%' to 5% if they fully
appreciate the underlying strength
and quality of these stocks. Banks
with
trust accounts are
getting
increasingly interested in these
Stocks and dealers could get this
FRANK
•
--xi.—
\
;
&BELDEN,y INC.
j
Allison-Williams
,z \.
•
Municipal and Corporate
NORTHWESTERN BANK
BUILDING
MINNEAPOLIS 2
Securities
Bell
work at
■
MINNEAPOLIS 2, MINN.
System Teletype MP
163
!
2770
the commercial & financial chronicle
In Attendance at IBA
Weaver, Deane L.
Webster, Byron G.
Meeting
Hemphill. Noyes & Co.
(Chase National Bank V
Tucker, Norman M,
Tuerk, Fred R.
Titfinell, JPaul
Turner, Arthur C.
Tweedy, Albert W.
Tyson, Robert W., Jr.
H
San Francisco
Wainwright & Co.
Boston
Urell, William H.
;
J
•:
,
Barr Brothers & Co.
Valenta, Frank L.
Van Camp, Owen V.
New York
Distributors Group, Inc.
Enyart, Van Camp & Co.
Gross, Van Court & Co.
Chicago Herald-American
v..
V^n Court, Albert E.
Vjanderpoel, Robert P.
Van Hart, T. George
Van Winkle, Paul K.
'
New York
1
.
•
New York
Corp.
Blair & Co.
J
i
Chicago
Pittsburgh
M, Byliesby & Co.
H. C.
New
York
'■
Chicago^
Los Angeles
Chicago
Salomon Bros. & Hutzler
New York
Paine, Webber, Jackson
Chicago
«
I I
J t
yyJ'
& Curtis
Varnedoe, Samuel L.,
Veit, Robert T.
*Vieth, Walter E,
Vind, Helen r' Vinson, Edgerton B. •»,
Vision, Jean
-77.7
Von Glahn, T. A.
;
Voorhis, Peter A. H.
Varnedoe, Chisholm & Co.
Shields & Co.
Waggoner, T. R.~ i :7y 7
Wakeley, Thompson M.
Walker, Cullom
Walker, G. Herbert, Jr.
Walker, Joseph T., Jr.
Walker, Robert P.
Wallace, Darnall
> Wallace, Howard O. Walter, Benjajmln A.
'Walters, P. A.
^
Davenport ■-*7
New York
771;
New York
Investment Bankers Asgn.
Chicago
Salomon Bros. & Hutzlc
New York
Lewisohn & Co.
New York
7';\<.
Wyatt, Neal & Waggoner 4 ;^
•
A. C. Allyn & Co.
7;
y'jy
Atlanta
.
.
New York
Hornblower & Weeks
Boston
F. S.
Moseley & Co.
y
Chicago
^77-V 77y7' New York
Bonbright & Co.
Rochester
Los Angeles
Bingham, Walter & Hurry
Stone & Webster and Blodget Chicago
Walton, Sullivan & Co. y;7;77 Little Rock
..
Third National Bank
Nashville
Norman Ward & Co.
Pittsburgh
Merrill
Lynch, Pierce,
Fenner & Beane
^Washburne, Hempst'd
Watling, John W.
Watterson, William H.
Watts, Sewell S., Jr.
Watson, Philip K.
yy
;
Campbell,
y"
"
1
;■
..
.
Williams, Elmer L. 7
-
ated
Kansas'City
7
y;
7 '; Baltimore
7y 7.
7 •7,77
:New York
Chemical Bank
-7
.
.'77
,
the
Denver
;
Davenport
Milwaukee Company
Ryan, Sutherland & Co.
Milwaukee
Toledo
Hibernia National Bank
Merrill Lynch,
Pierce,
:7
.
7
7
■
I
New Orleans
New York
7
New York
7)
7'7.
-77
Union Securities Corporation
Pacific Northwest Co.
Baltimore
Detroit
y
Seattle
Morgan Stanley & Co.
Blyth & Co.
;
7'777
Bacon, Whipple & Co.
Chicago
Chicago 7 7/7.'
Allison-Williams Co.
Minneapolis
New York
were
Weld7&
Co.; New York, to succeed Wright ':
Duryea 'of Gl'ore, Forgan /&" Co.;:
Charles "L.
Bergmann, ' R.
W. 1
Pressprich & Co., New York, -to
succeed Tracy R. Engle,
Bucklpy
Brothers; George Geyer, Geyer &
Co.; Inc., New York, tor succeed i,
George N. Lindsay, Swiss Ameri¬
can Corporation; Williarn C. Rom¬
mel, J. S. Rippel & Coy Newark,
to succeed Julius A.
Rippel, Jul(us
A. Rippel, Inc.; and Richard L.
Kennedy, Harris, Upham & Qo.,
New York, to fill the
unexpired
♦Wittich, Wilbur R. V,
Maxwell, Marshall & Co.
New York
Wolff, James W.
Newburger & Hano
Philadelphia
nominated by members of the As-*
sociation in District 13 as provided
Woll, Albert J.T.
R. M. Newton & Co.
Woltz, M. Thompson
Varnedoe, Chisholm & Co.
Savannah
*Wood, David M.
Wood, Hoffman, King &
New York
v
'*
Chicago
-7 77
Boston
Woodard,L. B,.
term of Herbert F. Boynton.
.,>77.:7>
Additional candidates may
jbe
the
in
By-Laws.
Members
of
the
Nominating
Blaine,
Goldman, Sachs & Co.; Henry F.
Egly, Dillon, -Read & Co,, Inc.,
Committee
Walter F.
are:
Frank
y7."~
.
Harold E. Wood & Co.
St. Paul
Woodard-Elwood & Co.
Minneapolis
Dunne, Dunne & Co.; Rich¬
Abbe, Van Tuyl & Abbe;
S. -Rutty,. Sage, Rutty
6 Co., Inc. y-'.
7/7-j y;; ;y •
7'
Walter,Woody & Heimerdinger Cincinnati
7*
Salomon Bros. & Hutzler
•
E/lVlasten
A.
& Co.
Pittsburgh
New York
Writer, Harold D. 7
Peters, Writer & Christensen
Denver
Wulbern, Edward B. 7*
R. S. Dickson & Co.
Wylie, Harold W.
J. M. Dain & Co.
Yates, James A., Jr.
Hill Brothers
7y
7.7
Incorporated
Young, John M.
7
(Formerly—Mahan, Dittmar & Co.)
Zollar, Mark A.
Drexel
7;.'77777:'
Sullivan & Co.
7;
Opens in Los Angeles
St. Louis
'
7
*
David
;
Minneapolis
Chicago
&;Co. 7 ;77,''
F.
and
Swift, Henke & Go. 7
Charlotte
*
7,7
F. S. Yantis & Co.
„;
ard
Chicago
y."
Wrightsman, Edw.;F. 7; yHarvey Fisk & Sons
<
•
r
Philadelphia
Denver
.»
Morgan Stanley & Co.
New York
Welsh-Davis & Co.
Chicago
y
♦Denotes Mr. and Mrs,
Texas Bank Building
SAN ANTONIO 6, TEXAS
'White,
7
Youmans, Paul E.
South
Committee
San Francisco
York, EdwardHM Jr.
Dittmar & Company
"
Dean Witter & Co.
Works, Nelson C.
y,;:" '
District'
*
Francis' KeFnan,
1
(New York
'
.
Board :of
13, it was announced 'by
George N'. Lindsay, Swiss Ameri-*
can Corporation, chairman- of
ihe 7
district.7
7"7. 7''.'y
7
Nominated for membership on
New Orleans
St. Louis
the
National
District
New York
Chicago
of
the
of
Asso¬
ciation of Securities Dealers
frbm
New York
7
member
a
Governors
Orlando
City National Bank
Baker, Watts & Co.
Quail & Co.
as
Chicago
~
G. H. Walker & Co.
Reynolds & Co.
Herbert F. Boynton of F.: S.
Moseley & Co. has beep nomin¬
|o succeed Henry 6; Riter 3rd
;
,
Boise
Witter, Jean C.
Yantis, F. S.
.
Boston
v
.
Chicago Tribune
*Woody, Marion H.
Cleveland
♦Denotes Mr. and Mrs.
616
^Detroit
White, Hattier & Sanford
Boettcher & Co.
ReceivesNominees
7 Nashville;
7
Corporation
Leedy, Wheeler & Co. 7y,;>',7
First Boston Corporation •
White, Weld & Co.
y ,
"
.
NASD District 13
Wirry, Tony 7>
Work, Robert M.
Chicago
: Detroit
McCarthy & Co.
Wilson, H. Warren • 5
*Wilson, Lyle F.
7
Wilson, Walter W.
7
Wiltberger, Alfred S.
Whipple, Jay N.
;;
Lee Higginson
Fenner & Beane
Wood, Harold E.
-y
7
y
'
Dawson
Philadelphia
>
Harris, Hall & Co. "' J;'
Watling, Lerchen & Co.
Fahey, Clark & Co.
Baker, Watts & Co.
Webster & Gibson
.
Geo. D. B.
y
,
Los Angeles
Chicago • 77
-
Baker, Simonds & Co.
Whiting, Weeks & Stubbs
Wegener & Daly
A. E. Weltner & Co.
7y
.
*
G. H. Walker & Co.
Coffin & Burr
Lynch, Pierce,
'7Fenner & Beane
.7,
Webster, Robert C.
Weed, William F.
"Week?, Roberts. 1
Wegener, Theodore H.
•Weltner, Adolph E.
Wendell, Barrett
Wheeler, Howard ,S.
Whitbeck, Brainerd H.
White, Alexander M.
White, Harry H.
y
White, Kelton E.
7y;
Wigeland, Andrew E. *
Wilhide, Claude W.
y
Willard, E. Warren
Willard, Frank A.
"Williams, Emil C. ';
Williams, H. G. .yy'yi
Williams, Robert N;777
*Williams, Warren D.
Wilmot, W. G.
77
Wilson, E. I.
.
Chicago
;'.|y
Stubbs, Smith & Lombardo -1 Birmingham 7
'Walton, Gus B.
,
New York
y
X
Hallgarten & Co.
.
Ward, James C.
Ward, Norman B.
Ward, T. Johnson
Savannah
V1
Vieth, Duncan and Wood
Fortune
Merrill
.
Chicago
Cruttenden & Co.
New York Hanseatic
G. Brashears & Co.
1
uy.y
(Continued from page 2769
Tul>by, Harold,
Thursday, December 6, 1945
LOS
ANGELES,,
CALIF.—
;
Swift, Henke & Co., members of
the Chicago Stock Exchange, has
opened an office in Los Angeles
under the management of
Edward^
J.-Bourbeau. 7Mr, Bourbeau was'
formerly with Straus & Blosser in
Chicago. ;y\7;
->:7 7y7y 7y7v';.v-vi 77;",.
Public
Utility Securities
L
(Continued from
Telephone—Garfield 9311
Teletype
.
—
r
SA 15
Established 1924
' 777:7777;77.7
page 2702)
these three issues will amount .to
about
y
$125
a share or some $60,However, this part of the
will apparently be de¬
ferred
and
some
change in the
plan might be possible before ex¬
piration of the "deadline" of Nov.
1, 1946. 7y77y 77':,77y7:y7'7'7'7*7;;77
Niagara Hudson in 1944 had an equity
in
subsidiary
earnings
000.000.
program
Underwriters
—
Distributors
—
Dealers
Kirkpatrick- Pettis Company
'S;7!'".y
Municipal and Corporation
Securities
7' • ;''
*' 1
■
•'' s-.'(
-T
-
1
:
Xy"7'». -.7' '
'
.
v";!*'1
Investment Bankers
vv^-' ;s^vVyv:;'''y-
!
•
;7
:M''<
~
-
,y;:.-'y.V'
i
540 Omaha National Bank Building
777 77,y,-:
•" 'Ty; ;-y,., .:;.j:7y
OMAHA 2, NEBRASKA
other
than
Eastern;
which
to
be
in-
$6,000,000
/
by 77
savings, etc. This would be
equivalent to about 680 a share on
Niagara
common
(assuming that
the Buffalo Niagara Electric 7
disposed of), Capitalized at
all of
were
14
times
would
earnings, such earnings
•added
of
the
make
estimated
TEXAS
perhaps
around
&
$4,136,000,
tax
Specialists in Texas Municipal and
Corporation Bonds and Stocks. 77-;.
William F.
Niagara
about
would
creased
Edward Jedd Roe
Buffalo
of
a
9J/2.
stock
To
worth
be
possible cash distribution
the
$30,000,000 estimated proceeds
of
the
Buffalo
Niagara
Electric sale after deducting the
bank loan and the preferred div¬
Farvin
idend
RETAILERS
SECURITIES
•'
7
' ■'
:.
■
.
.-7
.'V
be
:7"
.
-■ y-y
•
-if.v
y777;,7;• OF7y7;7- .77'777 "7-:
V'.-J,"
Underwriters—Dealers—Distributors
.,
an
this might
requirements.
equivalent to
a
This
little
.
would
over
$3" a
share, making the potential mar¬
ket value, based on the above lib¬
eral estimates, around 12721.( which
with
compares
the
recent
price 7 3
around -8).
TEXAS SECURITIES
Municipal and Corporation Bonds
"7:;i.7y
"7'7 7;' ;7-'',;:,-77'y7v 77"; 7-'
7 Obviously, however, because of 7^
the 'numerous; difficulties and as¬
sumptions involved in the calcu¬
Trading Market?— Active
lation
Retail Outlets
might
above,
prove
the mark.
pany
ROE & COMPANY
milam
Garfield 8338
bldg., san antonio
Western Union Phone
Bell
5
such
anestimate
considerably wide of
In any
event, the com¬
has made great progress
in
meeting the regulatory conditions
imposed
Dewar, Robertson & Pancoast
York
TELETYPE SA 3
by both
speculative
common
L. D. 15
it
and
which in itself greatly
the
SAN ANTONIO 5
Teletype—SA 70
on
Commission
stock
as
the
the
New
SEC,
strengthens
position
of
the
compared with
the situation over the past two or
thr6e years.
<
Volume
this
scure
Collectivism
is that collectivism is "inevitable"
in
.
.Their numbers and their influ¬
perhaps
in
than
country
our,
of us realize.
The early intellectual thoughts
.
...
mjany
"Inevitable" "Inevitableness," "In¬
Yet
their
tongues. They imply that today's
prove
that
fallen
into
their
are
minds
and
our
great
of
unique *jn
the
world
nation
were
was
a
intellectual leader., But
also
lan
yhe
: ,
farmer."
a
great
he
was
Benjamin Frank-
was a great intellectual.
But
quick
evolution
economic
the pattern for
all
collectivists
the words high in
evitability"
and
fixed
idea
is
order
of
Someone
ultimate
an
weak
as
illusion, and
an
The
;
effort
been the
a
to
as
dull
one
straw,
at that.
escape from the
State has always
the
of
control
towards the earth.
moves
have
over
collectivist
of
say
ing body
collectivist.
,
that industrial ad¬
vancement gravitates towards col¬
lectivism as inexorably as a fall¬
They
even
which
collectviism, stay put
remain
social
v
us
2,000 years ago
that the only permanent thing in
the world is change itself.
Th€
wages
daily control
and
the individual's life.
Let
cannot
societies
proclaimed
employment,
medicine,
prices,
and
inex¬
collectivist goal
a
state-maintained
socialized
on
moves
inevitable.
hope it may not be too severe."
Accordingly the unsteady one is
more than half won already.
world.
industrial
modern
orably towards
Thomas, Jefferson
■
the
is
socialism
postulate of all collectivists
that vitalized our people and made
largely the product of amateurs—
amateur i intellectuals,
if
we
flight. call them that.
.
The
think.
ence represent a more recent de-
,
the American Scene
on
(Continued from first page)
others, who are simply paid to
velopment
badge of Liberalism. The
effort to enforce State control has
They say that against this grav¬
f f o r t always been Reactionary. It was
the denial of the rights of individ¬
towards ithe preservation of the
free field of endeavor can prevail. ual life that prompted Nero to
ume of their words—they
made There is something childish, they persecute the early dissenters and
to
connive
VP
for in a certain earthiness, imply; about a : struggle against Constantine
against
;
aiuj a sense, of reality which gave this inevitable. Like imploring the liberal forces and submerge
them
within
the
the
law
of
gravity
to
Empire."
their American: concepts the buoysuspend its
/Sncy and vitality reflected in our
action, mit - is
grotesque
prayer;
; ,The
Reactionary practice "al¬
country's
phenomenal
develop- They: insist; that .collectivism is ways has resulted in maintaining
v ment.
: 5;:.?* *•
the
predestined and permanent a government-controlled govern¬
:V: But
With the "growth 'of our condition' of; industrial mankind. ment machine." Instead of
trying
\; country,;and the division of labor They would make us believe that
with might and main to diminish
collectivism
must
be
the
ultimate
there grew up in our midst a surthe power of the State over man,
also a worker in the Com,:.munity.f. What such men lacked
in sparkle and perhaps in the vol¬
was
Prisingly isolated group of minds
Whose daily occupation was sole¬
ly to think and to project their
,
thoughts
into
people.
■
The
radio
force, to
new
the' minds
development
the
of
added
impact
and,
our
great
of this
our
society produces
an
.
and clever word
twisters, the real
values of America are under attack. a'-;;..'•;■/:v*
V
j Their intelligence, their shrewdness,
their quickness and their
"I
competence
to
As
us.
calculated
then
are
of
many
that
the
must
be
must;
'
-
_
(the loudest pleaders for the Com¬
mon
Man increase the power of
send >shivers
happen
lectivists
the
a
against
the
unsteady listeners reply, "Yes,
a great swing to state
called
suppose
Common
often
Man
l|§f TEXAS SECURITIES g®
;
maintained; by their government
whirls around the great
Wis STOCKS,
BONDS and MUNICIPAL
V while political democracy is
served.
K:' •
--pr.-.;vy:
i
■securities
Underwriters
-
,
Distributors
Dealers
*
is:
ed.
was_significant and the in¬
This
not,
carries
of control
are
herd mind¬
with it the
idea
that is where lib¬
and
eral
sounding woi^s and phrases
profoundly mixed and be¬
come,
wittingly or unwittingly,
Reactionary.
When
Democracy
inherited
power it inherited certain weak¬
nesses
in resisting super-power,
get
because
that it
self.
of
its
was
That
to
made
us
velous
all
not super-power of it¬
is why it is the duty
done
as
Liberalism
and
of
every
great nation.
stretches of
land
hundreds
from
was
a
The broad
see
purpose
the
justly
as
by-
thousands of men
who have
much on their $cale as
communities
Mr. Ford has on
true
our mar¬
illuminated
are
of
his, and who are
proud
their
of
store,
liberal, to help men restrain the
shafts of power that infringe on
the
democratic
concept,
from
whatever direction the shafts ap¬
pear. Power rotates. The concen¬
tration varies,
Sometimes ft is
farm, machine shop, taxi-stand or
occupation,
their
sales
record,
production record or invention as
Mr. Ford is of River Rouge.
For
Big Business, another time in Big
Labor, another time in Big Intel¬
lect, Big Public Money, or Big
same
Government Jobs.
high privilege of every true
Liberal to oppose it in
est of man's freedom
the inter¬
from the
governing idea.
In
America,
and save a little have the
feeling of pride in their
small property as another work-*
man
has to his large property.
thing
But whenevnr-
and wherever found it is the task
and
American citizens who earn some¬
the herd
concept,
the
This American attitude,
applied
sky¬
has been one of the most
profound influences in the prog¬
ress
of the nation.
There is no
more
mistaken and mischievous
from
our
to
villages
our
scrapers,
belief fostered by
the collectivist idea, overlooks
other
fact that no association ever en¬
trial age
such
collectivists and
of
advocates
"indus¬
into
TEXAS MUNICIPAL BONDS
INDUSTRIAL
and political
{ %
RAUSCHER, PIERCE 6* CO.
MERCANTILE BANK BLDG.,
SOUTH TEXAS BANK BUILDING
SAN
liberty
', '
DALLAS 1, TEXAS
Bell Teletyp®
Long Distance
841 and 847
ANTONIO 5
and DL 197
^
Houston & San Antonio
Branch Offices:
Telephone Fannin 4324
Bell Teletype SA 23
Western Union Teletype
BANK and INSURANCE STOCKS
Western Union phone
economic
abuse, accompanied
the-powerful combination of
by
political
brains
and
the
public
Thfi "TEXAS"—the
"P.:
money;
Bank in Texas with the
'The hobby of the state social¬
•
ists is power.
Their interest is in
what Rousseau calied "the love of
of
-
the
"love
of
-may•
be
expressed
by
our
.v
.•
'.V
.
j
War
■
what
must
a
advancement.
tional
lectivism concept
☆
heart
of
this
self-faith
at
the
ancl
de¬
stroys the free field of human
deavor.
In
doing
so
Underwriters
and
Texas
Specializing in
Municipal Bonds
•
V'Vy
to
of
Offices:
^
I
~
^
..
OSHKOSH
MADISON
''
'
"•
L-'
invited.
Up-to-date analysis on any Texas
County credit gladly furnished upon
^
Branch
ten years.
Offerings of odd lot§ are
Specialists in Securities of Wisconsin Corporations
■
A
Special interest in Texas Municipal general
obligation and revenue bonds maturing up
Investment Securities
v
en¬
it repudiates
the Gospel's fundamental concept:
tlie individuality of each man.
Dealers
fff
291
Underivriters and Distributors
and na¬
The
col¬
strikes
.
v'
MILWAUKEE
.
When, in time, most people lean
on the Government, all the
people
have lost their freedom.
The op¬
portunity is gone to lean on one's
self. Yet if the principle of selffaith is hot a fallacy, then it must
be a virtue, and a source of inex¬
spiritual' Jife
•
1
.
05 25 y
MILW.
/
haustible
V
•
:
otherwise and still have been
fight for freedom.
;
:
.
DALY
TELEPHONE
meant. It could not have
we
•♦
^
of Chicago Stock Exchange —r
;:yvvy'TELETYPE
be
been
!
y-:
.
latest
■
Liberation', this
of
..
Member
-
as
and most'dreadful war. When we
said this was a wgr for liberty, a
u;
DEPARTMENT
The Wisconsin Company
repudiation
governing" re-
mains today as concise an aim
'
BOND
ACTIVE
governing." ' Yet the
A
panaceas.
who
dividual was
IJ
TV
-The grim lesson of our times is
that the greatest thief of individ¬
ual freedom and national security
y
mass
that
fact
the
BONDS and STOCKS
RUSS & COMPANY
and with that
,.
.,
men
overlooks
spirit, self-reliant,
cooperative, consecrated, can urge
us
forward
to
new
heights of
progress
without
diluting
the
proper
governmental controls
against abuse of the public gopd
or
nullifying governmental par¬
ticipation in many affairs wljich
only the people as a whole can
support through taxation, and yet
without sacrificing the principles
of
individual
freedom
which
planning, herd solu¬
By and large
speak most often of
the* Common Man, as though the
tions, herd
the
It
„
true American
re¬
PUBLIC UTILITY,
pre¬
TonlyrV;^';^vpf:
rThis relationship is not a coin¬
cidence.
The inter-independence
is organic.
frequently is
lated to herd
•
The modern democratic state
has been'associated' with the free
economic
—
of America.
modern
illusion that the free field of human
endeavor can be destroyed
of
Man
individual
the
of
woman
Trading Markets Maintained in Ail Unlisted
..
and
can
/.
■
the
case,
Common
and
man
UNDERWRITERS- DEALERS • DISTRIBUTORS
our
fi.eld of endeavor
achievements
on
But
phrase—The
ob-
speak,
assumption
government
sometimes
service
no
them
false
their influence
voices on radio forums, in
Congress and in the parlor. And
I
either
in
point,
and sometimes not.
economics" than that the
by man built up so average American's envy or lack
I The amount of control varies
of
envy is in proportion to his in¬
widely in history.
So does the great a nation as the association
nature of the control and so do established
by
our
forefathers, come and the size of his property.
the personalities. But the idea of
The
thoughts
and
aspirations
and that no system of Government
control itself does not vary.
which
have
vitalized
America
And
"planning"
ever
has
envisioned
or
the idea of control remains today
have been based on the freedom
4the permanent basis of Reaction¬ accomplished such benefits for so Of each man's opportunity; not on
ary thought.:':
-:Py '■:;; many people as those which have the uniformity of his results.
j; Glowing references to the so- accrued
from
the
ideas
and
(Continued on page 2772)
such
the
purpose
tered
solidly
"Why not?", ask
them.
This
cal purposes.
remains
record
governmental machine.'
the
historic
infringement on
Liberalism, done often under the
Liberal label, for practical politi¬
is
America, "col¬
in
exercise
the
while
keeper; r :. •■ :
r :
The idea that the people can be
.
•
along
piece of un¬
warranted dogmatizing when ap¬
plied to the United States.
victories and—among other things
to
to
spines. -But it is
the self-faith that should be
enhanced by our great and costly
closer
*
'
Well, this is resounding chatter,
U from
;
e
•
write and plan, they draw our
thoughts further and further away
i
long-term
social order.
<
increasingly large .number of
propagandists, along with .satirists
;
>
r
the
the form. of: public -education.
But when
no
•
I';Iijess;in being
tellectual--day by day
;
Much merit comes from all this
in
itation
incidentally,
By ..propagating an unprovable
profitable-- assumption of their own and then
a professional irirepeating again and^again that it
vastly, increased
27711
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
162
•
■
■
,
■
WAUSAU
\
Texas Bank & Trust
P. B.
Main at Lamar
)
City or
request.
-
v
Co.
(Jack) Garrett, Pres.
Teletype DL 493
-
Dallas 2, Texas
.
MEMBER FEDERAL DEPOSIT
INSURANCE CORPORATION
Collectivism
with
land,
our
Wide horizons to
lives;here in a way
then and
was
opportunity
unlimited
The
to
that?
within
pushing aside the
collectivists, we
own-feet and
grade. We are not a
of
songs
stand
can
the
make
our
on
Our
and
European countries toward a
common collectivist destiny. ', :
>
X-;? v'.The American Way of life is a
moving thing. Collectivist defeat¬
come,home.-■
any
;
•
Fori
tion
our
jare in
Classes.
the
levelling, society
and
man
The state becomes pow¬
everything
becomes
'nothing.
we
right to win and hold a place in
sun without regard to any po¬
litical affiliation whatever.
That
America fixed and stable
continual
By
there
the assumption that
on
years
the puzzle of
solving
replacing the workers who have
lost their jobs to robot substitutes,
and at the same time insuring the
man
of humble
beginnings his
prediction with regard to
future is justified that pro¬
,and no
ceeds
hundred
a
over
been
have
notwithstanding, no observa¬
of American life is correct
ism
happening in America
ever since the first scythe reduced
the number of harvest hands who
been
has
Free
sound and free.
floors of
tory of mankind. They have given
us the chance to find the secret of
ernment
the
place.
freedom.
there
at least two
are
The
heart is in the right
Our Americans of special
second
are,
to
Our
none.
before
men,
discovering
and scientists, medical
educators, artists and agri¬
of
a standard
Americans. un¬
prepare
can
for
living
r
other country
dreamed of in any
or
age...■
We
-
'vaV
followed in America
have
philosophy that the most im¬
portant thing in a nation's life is
the individual heart, soul and per¬
sonality—with its capacity for de¬
velopment. Here the individual is
not only protected by a system of
jurisprudence against wrongs by
his
fellowmen : but] protected
against the government as well.
The constitution was adopted not
the
alone,
of
structure
a
as
but
ment
as
registers
statistician
heart-beats
and muscles and
the prayers.
governmentalists show "ad¬
forgets the hopes and
The
concepts
hand an
"advance" of systemization, on the
Other
a
decline
of souls.; The
spleen becmoes the malady of a
levelling age, as the material sup¬
presses the spiritual forces of life.
vances"
•
this
Is
the fate
Republic?
moral
the
and
declines:
show
on
•
one
reserved for our
Is this the reward for
providing more remunerative and
less onerous tasks, in place of the
work which was eliminated.
This
is the
There
against
governmental
power,
religious
power,
economic power, powers
of
the
classes
as
well as the
spirited people among the proph¬
ets
of
the
"inevitableness"
of
collectivism here. They are plagi¬
arists, repeating tired or shrewd
phrases from the minds of men
promised to the la¬
- The individual
creative force which in the begin¬
bors of our race?
retrace its
them
one
And stern
which in the dawn of
existence is mere inertia, torpor
hnd death, must not become at last
the natural form of American life.
The ideal of humanity and the
hature of America are something
equality,
The question we
from
is
on,
North
the
South.
Marx
pontificate for
the
from
Lenin
life is as dif¬
as
ours
cannot
the American
soul.
v.
public interest, it is the duty of
government to intervene.
These
things seem so fundamental as to
be almost primary, but never has
be the
case.
member
tion
V\ ;
are faced with
are
should
we
We
these:
are
a
re¬
na¬
abounding in natural energy.1
Ours is
a
way
have
We
;
at
fate.'Not
the
the
that
tion
mind
human
country of breathtaking
built
and
with
ed
and
us
upon
American
heroes
way.
UNDERWRITERS
MUNICIPAL
BONDS
—
What
can
the "rights that
dearly
••
Resume in Wall Street
| Gamwell & Co., 40 Wall Street,
City, members of the
-I
STOCKS
J? y;
iy
New York
New
•
I
r.
J
an¬
William W,
Gamwell, U.S.M.C.R., and Lieu-r
1000 DES MOINES BUILDJNG
DES MOINES 9, IOWA
•ir
Exchange,
Stock
York
nounce
t
thq£ Major
tenant Commander Ralph
is *,
per,
C. Dra¬
U.S.N.R., have returned from
service
and
overseas
resumed
their partnership in the firm.'
Richard
I
A
MARKET
PLACE
mitted
FOR
to
B.
Fant
has
been
ad¬
partnership.';,
general
follows
from
this
prem¬
ise?
First, there can be no se¬
crecy; if the common people are
to decide, the full materials for
decision
must be made known.
Second there must be no black¬
mail
of
the
scientist
forced silence;
break
the
into an
en-
those who seek to
international
commu¬
nity of scientists and men
of
learning prostitute knowledge to
the service of power. Thirdly, in
the exploration of this new realm
of awe-inspiring possibility, the
claim of private interest to own
or
control
materials
or
processes
chains of
servitude upon mankind.
Adam
Smith's "simple system of natural
liberty," now, as I gather, in spe¬
cial repute in the United States,
is, in this realm, the direct road
would be to impose new
to serfdom.
We know the evil and
pain which were the price of
the first and minor industrial rev¬
olution. No one can be forgiven
the
permits its repetition on a
far greater scale b,y making the
second and major industrial revo¬
lution a means to a deeper di¬
who
,
of
decisive
so
^
7
■
as
judgment upon the men whose
invisible empires have so largely
a
policies that we
in
before
terror
a
the peaceful
development promises a future of
abundance to mankind.
We all
which
of
discovery
of death.
nation prepares,
through its government, to equip'
itself
with
the
power
to hurl
death upon its fellow nations.
No
people seeks that power; it is gov¬
Already
Gamwell and Draper
DISTRIBUTORS
CORPORATE
—
—
; .•.
moment
the
think of it as a weapon
Cannot meet in a truly American
INCORPORATED
land to share in the shap¬
this, the victory is thrown
because the cause for which
it has been fought is lost. ; /
;
ture holds no challenge that we
McCRARY, DEARTH & CO.
when
withdraw
danger is past.
I know of nothing
away
mains within our people;; The fu¬
■
of
grimly unmistakable that
to mankind no / other
homage than the promises they
make in times of crisis which they
pay
than
The destiny of our country re¬
jfl-
commission
ing of their own destiny—if we
proceed from, any other premise
'W??.V"/;'
ivon.
grasp¬
dence is
national
deny our
so
Hosea,
little
same
stand
their own
have
this
that
should
been shower¬
the gifts that have
and
Who is prepared to be¬
prophet.
lieve
shaped
It is to be ungrateful for
hands.
Amos
From
through Rousseau and Jefferson,
through
Ruskin
and
Marx,
through Morris and Tolstoy, that
has been the single verdict of the
Organization can have that
fathers who hewed their own
our
gain the <mief end of human
vate
effort?
It is for the common people
coiirage and confidence of
the
to
a
specialists acting under
authority of the United Na¬
in every
strength. It is to be a traitor
own
the
not
their pri¬
made
lona
so
title.
To lack faith in such a
conceive.
if
unreadyness
grasping plutocracy which
for
tions
civiliza¬
build the greatest
als to
even
men
eminent
materi¬
genius and vision and the
that
they
doorstep the
our
for
of
Who is responsible
import.
little,
has
implies,
answers
hurriedly
improvising a formula in a room
screened
from the public view
cannot be accepted by any of us
as having the title to decide our
Three
decided.
deprive the
can
we
hangs
civilization
final
discovery
power—all these seem mean and
petty issues upon which to dis¬
pute before the central issue to be
collectivists of their chance.
toads
'
which
The facts
this
In
and
are
ing plutocracy will undergo now
a swift change of heart?
The evi¬
does today.
freedom than it
future is deliberately to
...
thinkers or state so¬
cialists
may
take our freedom
from us, * doing so
in our own
name, but this does not have to
Special
different and higher.
|
outlook
ferent
and
steps and "obliter¬
by one.
whose
Pole
others by
Jts hard-earned differences, will
ning tended to inspire
ate
population becomes so powerful
as to
disregard and override the
man
;■
the wisdom of our choiceboundaries, frontiers, .tariffs, the
ignoble imagination which asso¬
ciates the greatness of a state with
the
neutral
massiveness i of
its
and superimposed author¬
That protection runs against
America-
really
no
our
life
the
upon
■
are
of
death
'i'.jf./•-y". V?•':.';c our
government more needed to
:Our progress has consisted of
adjust the governmental compass
the
pursuit of the
impossible.
to the pole star of individual hu¬
/
now.
recompense
not
havp ted the world in such
and we can do so again
We
progress
tremendous victory, the final
our
of human progress.
essence
that
derstanding
power
ity.
the chance
use
the secret—we have
to
make
great
decisions.
We
have to make, them on the un¬
govern¬
bulwark
a
us
■
pre-condition of
the
is
engineers
valleys are raised by the
The
great.
;
the will to
But
denudation and washing
the
the international democratic gov¬
country's
As the had hitherto gathered our wheat masse^. The public interest is
the paramount interest and. pub¬
■' v '' *J"- •:f'I}:',■•'" ?-y lic interest is but an interpreta¬
down of by hand.
I,
America at every stage, has suc¬
the mountains, rwhat is; average
tion of our individual interest and
cessfully met- this
problem by
rises at the expense -, of what is
when a group or segment of our
erful, the individual weak.
Enterprise
(Continued from page 2699)
?„
Our
valiant.
churches
culturists
'
see
are
and
-
rise, and to rise young, has always
location of labor by machinery
acted as a perpetual stimulus to
has been as constant in America
American youth and spurred them
as the tides are in the seas..
; •
to master some calling or career.
The history of the United States
It is our duty—the duty of all of
under modern technology is too
us—to see that this is more true
full of advances to document the
than ever in behalf of our young
assertion that we must march with
men in the fighting-forces as they
not
women
and
war
men
trustworthy
talent
suddenly emerg¬
ing into an industrial age. We are
not a rock-bound island.
Since our earliest days the dis¬
land of peasants
this
in
record
nation, and,
siren
remained for
the millions of other immigrants
who ; followed,
new
in all • the
world.
'''
v
v"v•'• ' ?"•J j'.•
that
expansions
Who could look at our
resources.
society
blessed or cursed by the
wartime
vast
strange
a
whether our American
has been
its
their
make
of
risks
and
dangers
on
is
(Continued from page 2771)
Our
forefathers
braved „the
:
Thursday, December 6, 1945
CHRONICLE
COMMERCIAL & FINANCIAL
THE
2772
every
They seek
ernments that seek it.
it because
live under
we
the
which
under
a
system
are
many
-
ex*-,
ploited b,y the few, and war is the
exploita-;
ultimate sanction of that
outcome of the
is the
War
tion.
by governments of un-;
iimited * sovereignty.
Unlimited
exercise
is
essential' to the /
preservation of those legal rela-4
tions which subdue all human be-■>,
havior to their service. We shall
sovereignty
rid of war as we get rid of
relations and the evil
politics they involve. We 7
shall not get rid of it on any other "
get
those legal
power
terms.
:
The
:
Nations
of
League
'• '■;failed %
lacking the will -/
work.
The Kellogg
because there was
to
make
it
failed
Pact
because,
-
lacking.
there too, 1
We have '
that
will
seen
governments watch with in^
was
-
difference the destruction of free- \
dom in country
after country be- f-
they were unwilling to pay
cause
1
price the social process exacts ;
to .preserve freedom:
I am not •
vision of society into the few who
proud of the British record in the
know all the gain of living, and
evil years of appeasement; I have >
the many who know nothing but
a
deep sense of guilt wheir I see
its toil. Let us say explicitly what
the tragic spectacle of Spain. I, do ?
needs to be said: Every implica¬
not think; the ordinary citizen of >
tion^ of'this
discovery
means
Great
Britain thought that the >
planned internationalism, econom¬
war
was being fought to return,'
ic, social, political. It is an in¬
under any pretext, the Indonesian i
ternational discovery/- The plan¬
peoples to the sovereignty of Hoi-' r
ning of its application has been
international. The organization of land, or to organize the conditions j
upon which an evil social system I
its future use must be interna¬
shall be imposed in the name-of ;
tional also.
law and order upon the peoples of i
There is no nation-state fit to
Southeastern
Europe — peoples r
be trusted with the development
who for the first time since the„ >
of atomic energy. There is no pri¬
break-up of the Roman Empire 7
vate interest working for profit
see the faint dawn of hope.
And "»
to whom its future could be safely
let me add for myself that I ac-4
confided. Were this new realm to
ccpt as the acid test of the. bona- .
be controlled by generals or ad¬
fides of the Labor Government, of .
mirals,' business men or profes¬ Great Britain" that it shall not t
sional administrators, it would be¬
merely declare its desire to see a: '
come
a
kingdom of despair and free and self-governing India, but >.
not of hope. If anyone here tells
it shall organize the conditions .
me that the world is not ready for
necessary to the fulfillment ofitsxr
the
dispiriting de-' 4
postpone ?
an outcome so clearly inevitable.^ y
; If we
want freedom, we must; ?
desire without the
sire ever to delay and to
IOWA
:
?
SECURITIES
-
•
MUNICIPAL and CORPORATE
/-
have
SECURITIES
If we are to have-;
not enough to will its,?
peacej
peace, it is
advent on
the
formal
We
Of;?
organ?':
plane
must
empty
desire.
\te the
conditions which make' it; :
the
interest
of
nation-states;
to"
;
of war but-?:
side the frame of reference within;
which human impulses ; operate.?;
That means that sovereignty must* ;
make; the- outlawry
T. C. Henderson & Company, inc.
Established 1930
V
i
-O
>ire
"
«
*
H
QUAIL & CO.
r
f
'
Blilg., Dps Moines 9, low a
Member Chicago
'
902
Teletype DW9?
Stock Exchange
f
•
Telephone 4-1289
Davenport Rank Bldg.
,
:
*
f.
Branch" Officer Waterloo,
go;
DAVENPORT, IOWA
Iowa "
V.
that means, also, that the in-;,;
sovereignty protects
tefests which
] must be recognized,
•
.
in Character and
as
outmoded ;'
op-,?
dangerous in
Volume 162
TH& COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
•
; eratioiifJust as the feudal system
%'-■ had to ^o, so the system by which
the business
f
■
•
.
*
t
man
has .made the
commonwealth an - unhappy, de*
pendency of the market, economy
has outlived its usefulness. It is
f,. clear to any
honest observer that
f a society dominated by business
,
could not be trusted to cre-
men
i
*
ate: the mental climate in. which
the development of ,atomic energy
would
be; confined
within the
■i
~
.
not.
j
give the
education
j
It is the business man.
who has
,
*
-
-
split our society into two,
the political society and the economic society.
They have made
the policeman the sanction of the
first and the threat of starvation
'
There is
r
the threat of the second.
f
only one country in the world today where this dichotomy has
be£n transcended. There is only
r
v
people, the
they fear its
common
because
outcome.
*
>:
would
framework of peace. .They
;
V
country, also, where science
and technology can be developed
£ without sacrificing the education
V of man and fearing the breakt
down of social well-being or comone
'■
munity consciousness. It is significant that only in the new
"/ world of Russia has the business
man ceased to count;
It is also
significant that one of the major
pre-occupations of the 'great
vested interests is now to keep
i the "secret"—-which is no secret—
from the knowledge of
Russia.
^ You know the result—a halt to
";' i confidence and the rise of ugly
>
*
suspicion - about
the
imminent
* chances of a. third
world war. 1
:
-
'
-
•
/
'
V
f 5
/yy
#
tion
intellectual ~ advance be
'chance forthwith to
was right when
he said that the Minister of Edu¬
for
given
the
cation
must
be
sary! limitations' arid are thus; free
Nazism in all its forms,
from fear.
Minister of War.
than the
Let
than-. Franklin
Roosevelt's
sity by making it the outcome of
content
the universe.
no
with
slum
djdng /civiliza¬
refresh: this
Without
tion.
house
it
we
than
ha^e
shall
•
make
and the slum mine than you in
done
evade the fact that you
preme discovery In the art of so¬
cial ; destruction. With it we can
the
United' States have the right to
have
ac¬
the
and fear.-
fraud
time
to
rest
This»is
new
a
to
begin
of
on
the freedom which
have
which
civilization, based
when
eomes
'
a
social
^
map
men's
minds
by the
of
Coper¬
These required
discoveries
society and
new
a
culture.
new
They
were
acquired, " but they
acquired by the degradation
of the mass of mankind. Now we
were
too
require
new society and a
this time a demo^
in a free? society.
a
culture,
new
cratic
That
culture
prospect
fear, and
:
Do hot think for one moment, distrust in that middle class
whose
that I think our task an easy one.
triumph was slowly achieved in
But let us honestly face What the- the 300
years -after
1600.
Now
task is. We are societies haunted,
they want to arrest the dynamic
by fear and insecurity because we- of history at the point where their
have made death the. sanction of.
triumph is crumbling into decay.
life and left its operation .as a
They cannot succeed and they
sanction to men who exploited its
ought not to succeed
Their day
j The first condition pf peace is"
terrors-to
keep-the many poor and is over. Their thought is bank¬
to subordinate a market economy
ignorant
and
deceived.
Now
we.
tp the claims of peace. It would
rupt, their -ethical values are ob¬
t>e a bold step to take; the alters" know .that we have reached, the solete,/ their dogmas an ' angry
native is fo permit the business poiht where if they continue in/ anachronism. A new • social phili
Mn! t(ii fix the criteria by which power their demands will imposed osophyj is heeesary' fcqr a
nevjr
the-future pf atomic discovery is the law of; the jungle upon us all;;- wdrld: Let us -admit that it can be
determined; To do that ih an age they sit there, believe me,4n the born only of a new; social order.
of political democracy is to force dark at ;Nurenburg;. when we inf:
Do you ask why? In the deep
f he nccmtra^
* between
a. so- diet men of their kind, <w£ indict, tempest ofarouses
-
A
I
■
A2
X
.
"v
;
Lestar
<
T
Ewing
Wadsworth Dunn Heads
McEBhiney Has
MILWAUKEE, WISC.
;
Reynolds Go. Research
Loewi
and Co., 225 East Mason Street,
members
of the ? Chicago Stock
Exchange, annoitnces that Lester
B.
Reynolds & Co., 120 Eroadway,
City, members New
York Stock Exchange/ announces
—
McElhiney has joined their
New York
that
Wadswbrth C. Dunn is now
associated with them in charge of
or¬
ganization, effective December 1.
Mr.
McElhiney has long
been
their
Research"
Department.
;
identified with the securities busi¬
ness,
and has been
a
Cohu:^ Toi^y Open/
vice-presi¬
dent of The Milwaukee Company
for the past several years.
:' :
f
LAKELAND,
As
o.ur
is
case
think anew
must
new,
so
.
and' act: anew.
.
■V
FLA. —Cohu
Torrey.have opened
must
we
■
Lakeland Branch Office
a
ciety depending-upon the elevaciety depending, upon human: pe-
the; point of
^ onage to develop to
^conflict. The one searches for new
r
standards of behavior, for a new
-
the
same '
types' In
society-
every
gave-
the
fice in the Folk Theatre Building.
W$
disenthrall o'urselves/'
The office Will be under the di¬
must disenthrall .ourselves; I venT
ture to repeat, these words.
,Ip
.other fashion can we face this
challenge with the; proud con*
fidenqe of free - men.
;;; "-.^v a Ir ^
rection
o^ Georgei O. Craig. and
will" be connected with the firm's
no
iriain of hW in New .Yqrk by prii
vate wire.
a 7,
777
/A:y, 7 ,•
.
where -dembctacy "i is pot f he jparv: the. duiet .past
MAIN -6281
inadequate, to
.are
PETERS, WRITER & CHRISTENSEN, INC.
k
ticipation
:
iji the- processes
the stormy present.
of
BELL,yDN 290
'The dogmas of
answer:
The occasion
government by free citizens who
is piled high with difficulty, and
live
we
DENVER, COLO.
Loveland, Colo.
-
by the
sanction
of life he1
must
rise.-with the occasion.
education, therefore, for an ethics
/ of life and not ah ethics of death.
«The other needs, that "beneficent
.;
,
•
y Ay yT.: A A;'7'A y 1 y /
and
HXI INVESTMENT
and colleges, our
universities and
foundations, even - the churches,
are the instruments of Big Busi-
.
Denver
press is now a branch of Big Bus*
iness too. It would be madness to
7,'/;;.V-V NEW
habits of the
We
'•>
;
have
world too.
new
to
come
feietype
:
a
are
DN 63
';3*
:
'
'
*
'
'
•'
'
'
I
;
*
,
<?'/.■ 'i -:.v';.^}fc\V -:-%r'
-
-V.v
?■'yv
••v..;*.r•.s-';*V«:V''.*.%•
be
: ■' £
r
/
;
^^5
y-;-.-
V':v.v
'•.';
we
i freedom.
1
j
as
-
Underwriters and Distributors of Municipal
.
r'
and
MEMBER OF
■-/!"-
'«
.
Vv'v^
J
.
enterprise
mean
planned
All
•
; compromise
'
sion.
tion
5
DENVER
.j
,
.
'
Teletype:
,
V ".'
■
■
7T
economy
are
a
to
v :'
.
"v-
."
■■
..
v'-
..:;
"■
offices
&
Ideal Cement Company
,
Colorado Milling and Elevator Company
'
.
Interested
Satanic illu-
Potash Company of America
Denver Tramway Corporation
in
Buying Block
Mountain
States Telephone
and Telegraph Company
v/::;':-;; California Electric Power Company
Offerings of Securities for
Public Service Company of Colorado
United States Potash Company
Retail Distribution
instance to begin the task before
Golden
But I accept it on conditions;
Cycle
Corporation
.•v^y-/
of the
and the public
integrity which are the glory of
!.
science and learning; no subori dination of the scientist to that,
STONE, MOORE & COMPANY
,
=,INCORPOU-ATEO/
.
.^practical man" who thinks it is
;wisdom to. have habit without
»
,
through
Harris,,TJphani
We maintain active markets in the securities of:
a
philosophy. Let the new institu¬
markets
correspondents of White, Weld
Co.,.and
J
must perish.
invasion
.
principal
v'
■''0 -'V';v:■, y 7>.-v*.
of
We must plan our civiliza¬
or we
Private wire connections with all
and
COLORADO
means
find
STOCK EXCHANGE
&
■/'!:
•;
DN 284
w
and the market
war;
socialism
attempts
No rsecrecy; no
internationalism
;
2,
CHICAGO
Telephone: Keystone 6241
Security Building,,
I accept the need for the United
Nations Organization imthe£ first
us.
i
Since 1927
There is no middle way.
economy
and
h
instrument
Corporation Bonds and Stocks
.
Free
I peace.
>
the
Building
Investment Bankers
'
must give it to men who find
abundance
CALIFORNIA STREETS
Active in all local securities
r
•
'
v:'
.■
Ir
r.;:;;: '
SUI;LIVAN A COMPANY
planned by
We must either have power in the
hands of men who use scarcity
f as the means of compulsion or
must
.
DENVER 2, COLORADO
f
,
.
?v-:v•/
7;f
tions which assume that freedom
that they
the many;
SEVENTEENTH &-•
"
•'
Ground Floor, Security
'XVv
the bound-
assume
'
Established 1918
choosing between institu¬
which
NEVADA
,
WYOMING
JmkshtmtBanher's/—~
GROUND FLOOR
njiusf be won by.the few and insti*
tutions
MONTANA
B°sworth,(Eaiiiite,Ii)Bghridge
SECURITY BUILDING
aries of the final dividing line be¬
tween
liberalism and socialism.
We
.
||
—
•
;
.
: UTAH
MEXICO
■.*——
methods of
private enterprise set the habits
of the age of atomic energy. For
• these
habits would then, like the
'habits imposed by the men, who,
after 1789 made this world the
let the purposes or the
•
BANKERS
Municipal Bonds of
/ COLORADO
First National Bank Building
is not accident that the
It
»riess.
<
ARIZONA*
CntLO, SIMONS, ROBERTS & C().
'
-
7o'7yy; 7
:7y
Corporation Securities
H. 'private war/V the law of the ecoy> nonvic jungle which is afraid of
V the democratization of knowledge,
.? Pn'xioUs for
an
ethics of death,
eager to make leisure cheap and
:
trivial Instead of full and creative.
If is not accident that ohr schools
:
/
,
■'
1
;
INVESTMENT BANKERS
;
AMOS C.SUDLER& CO.
Investment Bankers
First National Bank BId^ HEystone OlOl
National Bank Building, Denver 2, Colorado
Telephone .KEystone Z395
;
—
Teletype DN 580
;
&
branch of¬
'
tion of human dignity, and a sp-
•
Legros"
Joined bewi I Go.
the; Civil War, 'Lincolp
f
;
r
Emile
effected
nicus and Kepler.
a
'
than the vast change
with the reorientation
even
came
scientific
of the complex
universe in which we live, have
the assurance of -security and are
no longer driven to -work by the
fear of starvation or the apathetic
routine of endless poverty. Today
we are in prisons where we have
the key to freedom. When are we
going to open the doors?
a
of
art
We are before a revolution more
mighty
men
su-:
a
application of
the
to
power
temporary plaster upon such deep
and open wounds. This iS the time
a new
more
creation.
not
with
content
no
make a-jsupreme
quiesced for 8p years: in:degrad¬
ing 12,000,000 negroes by force
and
W.PEN N SYLVAN IA
OHIO VALLEY
en¬
ethical values which can renovate:
We
right torfand
more
the
NORTHERN OHIO
society
a
why^ we must alter the central
principle of our Civilization to
plan production for community
consumption.From: that central
principle alone do there flow the
poverty is a curse
of man's making; even if he had
the insolence to affirm its neces¬
be
of
'
terprise; when it subjects man to
the economy of the market, it de¬
stroys his right to be mam" That is
us
New Deal that
God's plan for
in- Britain have
culmiriatiori
'
built upon the anarchy of free
show b.y a New Deal on a scale
for wider and far more profound
even
the
is
important
more
they have recognized neces¬
cause
.
show that Plato
2773
Denver
'
Specialists Rocky Mountain Region Securities
Co,
THfi COMMERCIAL & Jl&AMCIAL CHRdtfiCLE
2774
greater
fot
refused
to
willing to leave it to you, in the
light of what has happened dur¬
ing the last 13 years, as to whether
or not I was guilty
of overstate¬
ment when, as a minor prophet,
(Continued from page 2713)
a magna cum laude graduate
with a doctor's
degree in the
sciences of bankruptcy and po¬
litical
theae
tives
discontent.:
I
experienced
catastrophes
as
chief execu¬
I caught a glimpse of the New
Deal before the New Deal caught
of North Carolina from 1929
to 1933 when
they were marshaled
glimpse of you or me.
a
against all governments. Former
President Herbert Hoover and I
Board
ehteted
fried
and
at
minated
both
of
Us
graduated
the
ter¬
time, and
qualified to
same
well
are
talk for the remainder of
on
and
our
6n one
only
that I
ever
raise
the
\
of
our
dir
economic
and indulge in economic
prognosis occurred on July 22,
1932, when as Governor of North
I
wrote
Governor
then
New York
in
a
of
letter
the
which
I
the
to
of
State
used
as
"Public opinion is in a state of
There are in it currents of
bonds and ties that
thought moving swiftly and with
power, sweeping people and lives
New
of
the basis
were
V
great victory?
to speak
to you upon
the
subject of "American Eco¬
nomic Stability,"! think it proper
daily felt. It is a mis¬
take to say that these currents of
thought are wholly the creatures
of demagogues.
Demagogues do
not
create
movements.
They
merely, ride upon them.
We are
more fhari blind if we think the
American
people will stand
trends are
hitched to the status quo." ,</
This prediction was made,
our
Since I
sudden
and
What has happened
Allies?
Where are the
our
for
me
am
to discuss
of the in¬
some
gredients of discontent that divide
and confuse
from war
move
as we
to peace.
How much of the pres¬
ent upheaval is superficial or nat¬
ural
incident
and
How tnuch
ominous
is
and of serious
as
know, in the darkest hours of
the depression.
1 was suffering
from mental, financial and po¬
litical anguish.
I atti perfectly
I
you
think it
to
transition?
and
dark
import?
to
experience instability as we
the post-war period.
The
sudden termination of total war—
us
enter
of
intentions of America today, I do
the nation.
which
will
The days through
have
we
mark
the
watershed
ing the atomic bomb.
was
done
not
consulted.
secret.
in
is
a
eral
funds
must be
court
that
of
general staff
It
means
the
If
be
must
consulted.
the
leaders
in
—
of
the
jurisdic¬
in
man¬
treat
decisions.
Wemuscles
are unlimering^the
mental
that
We
been cramped
are
in
this
great cause
believe
we
will
you
that it would
for
our
be
and
■
^
minds
of
izen?
What
ment
over
tragic, both
and
all
in
two
A
told
once
As
tonight that
wise
friend
that
we
great
have
what
we
of
"The
and
in
power.
We
both
are
the
.
,
Advisory
been
done
in
keeping infla¬
SAN
DIEGO
BEVERLY
SANTA PAULA
HILLS
SANTA
LONG
ANA
stability
achieved when the entire
population of this nation has the
opportunity
work—to
willingness
and
Contribute
the
to
to
wel-r
fare of the whole in a fair manner
consistent
with
the
fundamental
'
.
4
dedicate themselves to the
sity for all of
actually to
is
removed
work,
go to
.
in
complete
deflation
production and abundant sup¬
means only one thing
—work—work
It
is
for
everybody. y"
rather
amusing to me to
find many people who think they
are
economically secure who are.
worried almost to despair about'
the abundance of money in the
pockets of the average man today.
Give us time/ brother.
All we
have to do is to be patient with
present
our
itself
work
prosperity.
out.
always has.
short and with
educational advance
our
has
yet
degree in
a
It will
It
are
Unfortunately
been
able
common
we
no
to
sense.
rely upon
may
the eventual improvidence of the
and
in
still
production under the protective
policy of a free competitive econ-
to
without
danger
&
-r.
'/ '
....
average
ficult
American.
for
the
It
may
be dif¬
American
average
five
years' savings i,n.
one or two years, but the way we
are going now we may be able to
do it, as the demand of the Amer¬
spend
ican, people for new and more
products
during
the next few
years will
exceed anything the
country has ever known.. When
production catches up with and
CO.
Angeles Stock Exchange
,
probably
the
In
neces¬
able to
are
ply, and this
give
be
who
words, the only
antidote to inflation or
est,
could
us
other
institution
binders
dignity
of labor and to the national
all of
since V-J
Day would
when, in the national inter¬
all .teconomjc control fetters
; ACTIVE PARTICIPATION
"1
stability in America unless
people firmly resolve to* re-
America
BEACH
GLENDALE
I believe that economic
will be
to our national
life, and a free America be al¬
lowed to move forward into full
Members lot
w
and 196
call money. One
printing press, the
other work. I am & disciple.of the
doctrine of y/orks'
? ^
- 'J
* %*.
come
CROWELL, WEEDON
349
dollar,
two ways
are
these is the
Our memories
MEMBER LOS ANGELES STOCK EXCHANGE
Telewriter:
we
of
tion under reasonable control, but
that I thought the best hour for
and'
America,, for
accumulated
possess,
\
.
of
are
fears—infla¬
great
Chairman
had
a
are
real
Board, I recently said to President
Truman that I thought a good job
differences in
me
cit¬
the
questions
these
tion and deflation.
-
tolerance.
thoughtful
constitutes
of the quarrel
prices and wages?
The an¬
to
our
apprehension
labor,
swers
have confidence
economic
our
grave
every
found
will resolve
to
////// /■>/%
basis of disputes between manage*
with
agree
welfare
nation and for the world,
wealth
>
American
to make what
nomic
if in this her greatest hour Amer¬
ica should, through dissension and
what
Los Angeles 13, California
the
today, the soundest money.
There
our
our present unrest and
threatened instability?
What are
the words on the lips and in thb
and only
justify the
for which we fought.
can
me
for
Phone: MAdison 2392
-of
in the world.,:
haunting
and crowded.
issues again,
way
in the common good, what
blessing it would be to thO pub¬
i" What is the
present satisfaction in
to achieve a future goal is
the basis of all economic progress."
510 SOUTH SPRING STREET
value
which is
ences
lic
having full and free dis¬
cussion of
We
/
hand, and at the same
progressively forward
one.
move
librium, steadily rising under the
impulse, of full, production. In
order to do this, we have got to
keep our ey0s constantly on the/
a
labor, and the
economy
have got to chart
that will avert inflation
towards the goal of a sound equi¬
a
stability. "
light of our traditions—our
traditions of restraint, moderation
^
aspirations
agement, and all leaders of labor
use
that the rank and file of
denial of
;
/
which
.
fate and
stubborn; individualists
order
Accurately
;
common
tional fights within
citizenship are to have a part,
directly or indirectly, in
mine
and
where
word, which
has faith in
the
sacredness of the individual." X!"
either,
I
■
eitizens
all
common
the
time
we
stabilized
a
we
and
and
Quotations Given Promptly
:
have
course
on
no
court
What is the spirit
It is the temper
,
to
management were compelled resources, needs and greatness of
denying the fact that war is im¬
to memorize these masterful words
the country. I emphasize willing-/
patient and even inconsistent with
of
moderation
from Judge Hand
ness
to work,
I do -hot believe
the democratic process.
Democ¬
and then reconcile their differ-; that we can attain or retain eeoracy means that others than the
we
/
.
believe, therefore^ that if
America"
a
flourishes,
save.
their
the
SECURITIES
society
a
recognizes their
bitterness, fail to resolve her dif¬
COAST
spirit
-
moderation?
between
what to
no
wisC
does not press a partisan
advantage to its bitter end, which
can
understand and will respect
the other side, which feels a unity
throwing off the stupor and regi¬
There is
save;
I
in
which
mentation and beginning to think
for ourselves.
We no longer have
do and not to do.
can
need
to
With the end of the war, we are
us
and
devastating disease. I' kriew
only one evil more deadly than
inflation, arid that was the paral¬
ysis' of deflation;-; : > :
r <
«
of
.
the
,
say
are
society so riven that the
moderation is gone, no
a
spirit of
in times 61 peace we
chief of staff to tell
From
•
eloquent
your
.
was
subjected
lost?
,
to close
a
of
pen
white light of publicity, and
public scrutiny, and surely
the
sometimes
Judge Learned Hand, we have the
following:
V,
;
All of this
Congress
it
Right hete I Would like Jo
that as long as controls are
should strive to find
a
more
expeditious method for
wage-price adjustments and do
away
with current, delays and
omy..
necessary we
was" a
1/
necessary to- the survival of a
democracy? How is it cultivated?
How is it to be preserved?
How
In time of war,
method is defensible, but in
time of peace, every dollar of Fed¬
such
'..V,.-•: /*-;
,/
6, 1945
cumbersome processes." I told Di¬
rector Snyder that, while inflation
any
so
this
course
be
What is this spirit of moderation
suddenly
is right
and proper.
The peacetime way
of spending public money differs
radically from Wartime., Two bil¬
lion dollars were spent in produc¬
Of
ferences.
PACIFIC
order.
tures for munitions have
stopped.
there: would
hope for world stability or-world
his¬
of
believe
not
recently-passed
tory.
,\\/ ; ■ n
Our vast and unlimited expendi¬
;v I
Specializing in
and the little nations of this
men
earth in the integrity of the goold
have
perfectly natural for
have
we
bound to bring serious Shock
to the economic and social system
should con¬
structively strive for a balanced
budget.
I realize that, by reason
of .-national necessity, it will be
1948 before we can
hope for a bal¬
anced budget.
i
jdistrustful of each other?;
nation?
a
to
things
not for the confidence of the little
history
—is
Where is the unity which we had
flux,
them.
point—that the dislocation
is the basic cause of
war
come so
this
unmistakable language:
before
so¬
period
complaint.
People who walked
together in harmony only a few
weeks ago are today openly find¬
ing fault with one another. Man¬
agement and labor which worked
together so efficiently in produc¬
ing weapons for war are now in
hostile camps.
Why have we be¬
future
Carolina
economic and
present disunity,
Today the
is filled with criticism and
OUr
time except tonight
seriously attempted to
veil
the
of
in office at the time will
quite forget;
The
our
discontent during the
physical and mental reconver¬
sion. t am sure all of us can agree
bility in America during d depres¬
That Wds One political agohy
ever
to
of
the subject of economic insta¬
one
on
reasons, for
cial
lives
sion.
no
Of the Advisory
Reconversion, I have
locate the fundamental
Chairman
As
the most destructive in all
the
seize arid selfishly ap¬
for ourselves. • If it were
propriate
I dm
Thursday, December
Original and
exceeds
consumption,
Economic Club will have to
meet
again.
,
'.
.
•
We must remember that most Of
Secondary Distributions
work
as
not
for
the
sheer
joy
thereof
650 So.
■.V
Spring St.
.
LONG
LOS ANGELES
|,T.
Tel. TRinity
14
but
to
make
a
living.
bellboy in my hotel asked
me
the
ether
day how much
higher I thought duPont was go¬
When
0281
(1Teletype LA 38
IAGUNA
BEACH
BEACH
a
ing. I knew we
;
& CO
There
is
one
MEMBER LOS ANGELES STOCK
EXCHANGE
Underwriters & Distributors
Over-THe-Counter
621
Bell
Trading Service
MARKETS IN CALIFORNIA SECURITIES
STATE-WIDE DISTRIBUTION
SOUTH SPRING STREET
System Teleljp.'tA S3
LOS ANGELES
"
Telephone Madison 2181
14, CALIFORNIA
MEMBERS OP LOS ANGELES
621
HOLLY WOO!)
PASADENA
LONG
STOCK EXCHANGE
SOUTH SPUING STREET, LOS ANGELES 14
BEACH
SAN FRANCISCO
POMONA
RICHARDS & CO.
HILL
RIVERSIDE
SANTA ANA
•
OAKLAND
PASADENA
Private
•
Los
•
GLENDALE
SAN JOSE
•
Angetes-San Francisco
.
LONG
SAN DIEGO
Wire
DEACR
were
on
the way.
thing more to be
-
Volume
2775
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
162
'
vitT-^
.'1
'
dreaded: than
j1
t
t
the long run,:
instability,'
about
I repeat, we cannot be
stable if we remain static. Change
is the law of -life..
That society
dowed
and
1927-29
the
ride
joy
I
with
was,
perpetual prosperity
us
unwisely con¬
cluded that
would
we
have
never
a
agajn—and please remem¬
that most of these suckers
see
or
work.
••:/
-But
/V;/:
...
that
>■,
ful to
dollars
billion
of
diction as compared) with . our
wartime achievement of 200■ bil¬
:
*
growth
lion.
And because of the
of
labor force and our producv
our
efficiency a mere. 1929. rate
of, production would leave nearly
tive
million of
20
our
workers uhem-
ployed today-^-far more than the
./total we had out of work in the
,r
phase of the current long cycle. It
now seems assured that, in num¬
bers at least, equity offerings are
slated to far outrun new issues of
terms for bidding.,
^
<
„
.
mdst of
/;
us
in
as; the
immediately following the close of
the Victory Bond Drive next Sat¬
urday. '
ket
its
.
n"d
of Imom
elimination
any
ourselves
reconcile
must
turmoil- and
ruin.
/
"I
to
Bankers
/ rates low.
tem¬
instability and controversy
society struggles painfully with
new ideas; new methods and new
conditions.
If we do otherwise,
we will achieve neither stability,
ark of the covenant of
*:/; And
could
finally,
my
explore
the
average
I believe
stability.
.
Accordingly it'does not appear
likely, unless something now un¬
foreseen happens, that investors
will be able to hope for any early
increase
in the yield on high-
friends, if we
mind of the
American citizen ' today,
we would find lying side
by side two important desires. One
is
wish
;/:':>'v-vV <1
.bi-'r*-:
This concept of stability is not
static.
•
It is dynamic. „ But the
very
essence of a dynamic sta¬
bility is that it cannot be achieved
by a policy of drift.
We have
either got to advance or recede.
We cannot stand still.
I hardly
.
I believe in the
American free enterprise system.
I do not believe that the best in¬
terests or the-stability of the natibh are. served by regimentation
need
say
that
peacetime. But a system of f^ee
enterprise does not mean that the
in
government assumes a role of im¬
potence. Planning by government
need
not be regimentation. - It
seems to me that planning is just
the common-sense approach to a
constructive
post-war
economy.
Every well managed business has
general
staff.
Business-like
operations of the government de¬
mand the same approach.
Our
some
Electric
com¬
involving
a
700,-
Alleghany
Corp.
On the
which
shares
Of
involve
American
'
479,000
Potash
&
being sold by
the Alien Property Custodian and
256,000 common "shares of Bates
Manufacturing which will be of¬
fered
common
first
to
old
4%
150,000
stock
is
issues
the
10
The
for
due
debentures
bids
quence
next
1985,
in
Monday
companies.
The
a
group
of insurance
a
Loan
Finance
loans from it are now in
to repay
obtained
a
agency
Missouri
the
trustee
to
task is simplified and our
chances
increased
by; the
are
success
planning
best
we can
Electric
RETAIL
Buffalo,.
slated
is
repay
interest
With
*
payments,
total due would run around
after
500,000
crediting
world
job that will bring with it in¬
dividual
well-being and stability
and his family. ;. /
to himself
The two ideas
really differ¬
ent approaches to the same prob¬
lem.
The untutored thinking of
the
are
and caring
theories of
international law
The trustee
terval.
said
to
that thus far
no
decision has been
reached.
DISTRIBUTION Of SECURITIES
in the
'.
sov¬
and
stability, shows an in¬
understanding of world
tuitive
problems when he ties up in one
the
bundle
bread
and
desire
a
„
his
for
chance
daily
WagensellerSDurstJnc.
Investment Securities
world
for
peace.
It may well be that we
cannot long have our daily bread
world
without
peace,
I
and
LOS ANGELES
am
man
has stumbled
equally doubtful that we can long
apd laid bare the core of the have-world, stability without our
'
problem facing this nation and daily bread.
14
Members Los Angeles Stock Exchange
common
,
TRSMTY 5761
626 SO. SPRING ST.
J
Teletype: LA 68
upon
CLAREMONT
V REDLANDS
PASADENA
Market Quotations and Information on
G.
&
3RASHEARS
Members Los Angeles
•'
'
'
SINCE
All California Securities
COMPANY
Stock Exchange
'
1922
GENERAL INVESTMENT
.
FEWEL 6-CO.
SECURITIES
.
MEMBER
510 SO. SPRING STREET, I.OS
ANGELES
Teletype: LA 76
MAdison 7741
LOS
STOCK EXCHANGE
ANGELES
,
'
provide.
We Offer
Complete Southern California
Coverage
I
INVESTMENT SECURITIES
planning by the government
to create a pattern of government
and
enterprise
relationship
in
which individual industries, in¬
tion
for Retail Distribu¬
of
Securities.
,
dividual; companies and individuals
a
feeling of confidence
and stability in
making their
own
plans for their own operations. In
this direction lies American econdmic stability.
■
t
have
not
yet
fully
Bingham ,\¥\lter & Hurry
r
stability.
planning
w
11
Teletype LA 456
Los
621 S.
Spring
-
LOS ANGELES
-
TRinity 1041
•
TRinity 4191
Angeles 13, California
explored
seems to me the most crucial
factor in cur struggle to achieve
and
453 S. SPRING STREET
//
Bell
Member Los Angeles Stock Exchange
Teletype LA 224
wfiat
economic
Production
ot suffice.
that the
less
fine-spun
In
PASADENA
'
/
V.
LONG
BEACH
SAN
BEVERLY
WESTWOOD
the
$25,-
interest
man,
little
knowing
about
economic
a
common
-
which the road lias paid in the in¬
from bonds and in
world.The
ad¬
$23,134,800 at the end of 1944.
SOUTHERN CALIFORNIA MARKET
the
re¬
Pacific
pros¬
issues ahead gives
new
away
be established to prevent war.
mean
will have
has
blade by it which totaled
a
of.
position
the riioney.
Railroad
vances
instances
in
which
railroads
request is undef considerdtiori but
%r
following .day
Niagara
di¬
1970
common
,
11.
back
hat
its
get
of
of the refusal of the Cali¬
dud
of
Reconstruction
where
up
fornia Railroad Board to allow
rect sale to
and
The federal
conse¬
its
Corp. is evidently determined to
Pacific Telephone & Telegraph Co.
2% %
bonds,
shares
RFC Calls
new
$75,000,000
through
expected to be priced be¬
tween
quested
Largest of the prospective
debt
Co.-
mortgage
plus
'
'
sale.
bankers, will offer $13,500,000 of
stockholders.
New Bond Issues
1
indi¬
And
day Illinois Term¬
same
Railroad
inal
common stands out.
those
Lehman
idea of the shifting of the
ereignty,
that
The other is the natural desire for
the will of the wisp of secur-
pective
/ trend
order
the
may
a
of several lists of
One
4
porary
,ity.
which
of
debentures.
25-year
847,000
In point of money in¬
Chemical
believe
as
nor
shares
and
Co.
Tuesday $50,000,000 of Z%%
on
Two other big equity deals are
Assn. in Chi¬
cago, declared it the policy of
the federal government to keep
being carried on by the rep¬
resentatives of the three great na¬
tions of the earth.
Here is the
000
Secretary
the Invest-
ing recently before
of
petitive bidding, followed by
Klines
Treasury Vinson, speak¬
inent
block
deal
&
cations point to a quick
Bond & Share will sell in
negotiated
Sachs
Brothers, is scheduled to market
£00,000 shares of American Air-
bottom of
long decline. And
the
of
the
common
common.
reached the
has
is
Dairy
Products, by negotiation with a
group
headed
by
Goldman
prefered on
has fixed
volved, Aviation Corp.'s sale of
There is no gainsaying the
fact that the basic money mar¬
,
economic
no
r-sV
y
par
company
National
now
f.'&'•
kind..: Stability is all of
these,- things: but it Is something
more. V To
achieve stability we
of
1
porate indebtedness in the period
would not be here to-
night./.
depression, of inflation and^ de¬
flation, of prosperity and poverty
—as the elimination of extremes
•
have
can
stability without political stability
and no political stability Without
economic stability.•
We make a
grave mistake if we think we cap
have economic stability in Amer¬
ica with all the rest of the world
of the depression.;
Many people think of stability
"
bonds and other evidences of cor¬
Next
$100
shares of American Gas & Elec¬
tric
Meanwhile
prospective new
studded with sub¬
matters
of debate
now accepted as a mat¬
v
our
we
of
the
minds and our hearts
are
open
to
change,
we
can
achieve stabilityboth economic
and political.
For you all know
that
list
issues is
of
grade bonds.' Meanwhile lesser
grades have adjusted themselves
to the general picture and the sup¬
n/.' ^t seems to me that this points
that the roots-of our economic
to the essence of economic staply of the more desirable de¬
system will wither and die unless
bility. Stability is not synonymous
scriptions
has I been " whittled
they are firmly planted in the fer¬
with security. We shall not achieve
down to the vanishing point.
•
tile soil of world trade,
Z Kstability if we are permanently
investors, moreover, have been
The building of a stable world
satisfied with; our; present stand¬
forced; into the position of fore¬
ards;.
Society stagnates when/ it- peace upon the ashes and ruins of
this war will require all the ca¬ going some degree of secruity and
: befcomes
smug
and * complacent.
accepting a certain amount
of
The key to stability is to set our pacity, patience and restraint of
risk in order to obtain a more
which the human race is capable.
sights, ever higher to strive for
substantial return on their funds.
Whether we like it or not, just
higher and-higher, goals of proAs a matter of fact this has been
remember that the stability of
duction.
If . the motive power of
made necessary if the money is to
this nation and the whole world
America had not been to come
be piut to work at all, as witness
depends upon the slender thread
up—come up higher and Jvghcr—:
the Relentless demand for seasoned
of negotiation and
renegotiation
worst years
.
The
stock
a
-
Yes, if
new
issues.
.
which
of
Wednesday, Chicago, Burling¬
ton
Quincy will dispose of
$50,00(1,009 new mortgage bonds
in open bidding.
con¬
nine
perhaps, is Buffalo, Niagara Elec¬
tric
Corp.'s
projected
350,000
stability
900,000
Some of the Big Ones
error
Those
pro-,
debenture
or
shares
ter of course/
Then we had less
today.
us
100
than
only
stantial undertakings. The largest,
and
open-bids for its issue of $56,of new first mortgage
bonds,
due
1975,
while
on
It
of
multitude
a
governments that have
enough.
There are other factors had the greatest economic sta¬
fundamental to the attainment of
bility have been those that have
a t stable ' society- for
which we found a way to adjust to chang¬
must strive.
We shall not find
ing conditions. ' Those govern¬
these factors by looking backward:; ments that have been unable to
The key to economic stability will adjust have often been
swept away
:
not be found in the past.
It is when they thought they were ab^
-"just 16 years since 1929; but in solutely secure.
As the old phil¬
terms of social and economic prog¬
osopher says: "Just about the time
ress it is a 100 years.
The so- they, think they have the world
called "boom" of 1929 looks piti¬ by the tail, the tail pulls off."
v
■
bond
schedule
on
With
The investment market appears
once
are
stocks
trasted
definitely to be moving into a new
may
equities.
of
be measured by those
progress
which
not
is
come
a
do men
to know the truth.
of
Only through
nations
The
.
itself
in
residuum
of
total
twenty-six
prospective preferred and com¬
mon
receptive
are
to maintain its equilibrium
changing world.
Progress is
country
things
>./ V
'•
To attain economic stability we
must, of, f course > be willing to
audience.'
a
the
in this
familiar faces
some
be no real
can
we
direction
shows
way
takes.
w£re not people who earned their
bread in the sweat of their face.
One- of them is talking to you and
I
unless
change.
in
to work
ber
to
,
will be the most stable that finds
of
many
that there
mean
stability
alt thought we were en¬
we
,
economic
is
the
stability depends in
large part upon our state of mind.
that
that
v
1 v*',*
'•
eeonomc
profligacy,
wdste and riotous living.* To my
mind*''one--, of
the worst
things
and
DIEGO
HILLS
ARCADIA
THE COMMERCIAL & FINANCIAL CHRONICLE
2776
Thursday, December 6; 194$
Distribution of Direct Debt
i,"v
Outlook for Investment Business in Canada
,
and
.V
1.943—
bfeen
sold
With
the
instituted.'.Results of
War and nine Victory
two
No.of
Date of Issue:
-'"
(In Millions of Dollars)
$200.0
$68.0
:$132.0
'.V
3rd—Nov.
1.1942—;-1- 1943-—-—--„
1.1944———
1,1944-—_
l y.1945—-i; u-:;—V;
6th—May
300.0
•;
113.0
187.0
;
279.5
450.9
730.4
968,259
335.6
507.5
843.1
V 374.6
616.8
991.0
529.5
779.2
1,308.7
1,681,267
2,032,154
2,668,420
>.•
.
:
599.7
775.3
763.5
1,375.0
1,405.0
762.2
750.2
1.512.4
on
in
Between
Nov.
arid
'
of
broad basis for the stimulation
30,
the
Sept.
1945,
approximated
•
Many citizens,, through
purchasing Victory Bonds, have
public.
.
the
discovered for the first time that
est
out
sound
a
$15,-
the
Three
3,033,051
3,077,123
7
issues
in
payable
Government
creased
by
an
-
in¬
have
amount
.the
in
dmectodebb
payabie in U. S.„
to
$178,000,000.
direct
sues
debt,
;
\
is
■
-
payable
now
-
in
the
of
total
12,000,000
100.0
:.
funds..
Furthermore,"; the
guaranteed
of the Dominion, consisting
-
development,
proud
of
the
but
she
-
confidence
Fisheries
over
political conditions
highly probable
seems
abound
stands.high.
;>
phases
war
is
l-
i-—;
Manufacture '(excl. duplication):---
of
.
-v
,
1
DIRECT
_—^
•
■'
,.
WIRE
UNLISTED
SECURITIES
•
.
BETWEEN
NEW
YORK
AND
•
'•
i
»w"''
FRANCISCO
SAN
>..■>;
-"
-
-r
OFFICES
—
Favorable balance of trade.——,
t
Net exports of non-monetary gold-Electric power installed, end of year
:J (horsepower) —w,
With
LISTED AND
PRIVATE
institutional
77'7:m®
accounts
^
this background, the out¬
indicated
as
:
.
,
$12,261,390,000
,
■Ifr.
-
,
SAN
FRAN ICS CO 4
1500
RUSS
NEW
NEW
BUILDING
SAN
TELETYPE
SF
29
<>
.
i
:
MEMBERS
YORK
STOCK
YORK
CURB
FRANCISCO
EXCHANGE
i
,f
STOCK
NEW YORK
'
•'
EXCHANGE
tXCHANBE
2 □
;
PINE
.
TELETYPE
.
DROERS
EXECUTED
IN
ALL
MARKETS
5
STREET
1-26 7B
have
resources
beauty
INCORPORATED
INVESTMENT
esses.
■.
gration
-
DEALERS
•
SAN FRANCISCO 20
300
DISTRIBUTORS
LOS ANGELES 14
Montgomery Street
650 South
YUkan 1551
.-V
OAKLAND
\
-Teletj-pe SF 431
^ '
-
TUcker 3151 "
432
sax Jose
LONG DZACII
SANTA ANA
SAN DIECO
.:•••
scenic
country's popula¬
12,000,000 can be
Pronounced population
'
growth
wnuld'encourage
ment in
domestic
on
a
invest-'
consumer
goods
broadened scale.
wealth in
public
petroleum, iron and other deposits
sound
has tremendous scope for further
are
example,
recognized
a
as
:
war-torn
commercial
unknown
countries
PASADLNA
SACRAMENTO
MONTEREY
FRESNO
development.
mineral
Also;
wealth
BEVERLY HILLS
RENO. NEVADA
DISTRIBUTION FACILITIES
1
••
J;
covering the-..
I •;•••••»•
NORTHERN
.
CALIFORNIA
Moultom& Company
MUNICIPAL BONDS
77
:
■
■Ji.
.
I
i
i
.
•
" '
.
MASON BROTHERS
>:
'
'
Members San Francisco Stock Exchange
>
'
CENTRAL BANK BUILDING
LOS ANGELES
510 South
13
Spring Street
Teletype LA 243
SAN
FRANCISCO
OAKLAND
4
405 Montgomery Street
San
Teletype SF 98
Francisco
Euss
<
(4).
Building
,
.
12, CALIFORNIA
Sacramento
Financial
;
gold, base metals, coal,
;"
stocivTc::
.
| Fifth: Canada's known mineral
investment.. For
trade ; with
Teletype LA 533
.
increased through immi¬
well as through natural
industries
basis to finance large-scale export
V
and
ability to produce, to export and
to finance development through
loans
Spring Street
7.
as
increase.
The
The
about
of
greatly
•
UNDERWRITERS
woods
travel, recrea¬
sports of all kinds, -This
Fourth:
war
-
Second:
The
facilities, food services and other
tourist conveniences.
; ' •
Canadian people
have become more aware of their
I.
SECURITIES
development
logical chan¬
encourage
tion and
tion
.
a
development envisages construc¬
tion
of .roads,
improvement; in
transportation and accommodation
been
production,. Cana¬
dian industries have acquired ex¬
perience,
skill,
efficiency
and
greatly improved equipment to
handle new manufacturing proc¬
f
"■
Extensive
mountains,
manufacture.
,
normally provide
markets for Canadian
country's healthful climate, lakes,
plant, machinery and equip¬
for reconversion and post¬
requirements of peacetime
Through
10,283,000
would
nel for Canadian investment.
ment
war
-7 7
of tourist trade is
conserved to replace and modern-^
ize
43,100,000
1,758,900,000
,5,242,000,000
1,724,200,000
109,700,000
; 8,289,000
Third:
in
stronger financial
position than they have been for
many
years.;7 Many companies
have taken advantage of prevail¬
ing low interest rates to refund
their outstanding bonds into is¬
sues carrying lower coupon rates.
Financial
i'i.
:
produce,;:'V-;v
com¬
$3,440,000,000
; r 7
184,400,000
which
clearly appraised.
are
the
the
133,000,000
23,404,000
893,000,000
201,545,000
407,000,000
; 226,725,000
-7,566,716,000
.$924,900,000
11,000,000
751,100,000
1,887,000,000
;
184,900,000
profitable
panies
by
$1,874,000,000
936,000,000
466,032,290
;
52,883,913
7,919,412
; 6-;)3,342,816
151,880,969
373,203,680
160,374,000
2,854,455,662
be
more
op¬
credit
1944
$900,384,000
look for investment in Canada can
First: Canadian industrial
.
production during
years,
$5,630,476,742
-
—----———-
Total trade
and
following figures:
—
exports_ —•
Re-exports
Imports
re-,
Substantial progress marked alL
—'"j-J-..
total;
and
1939:
'
,
Dominion, where investment
Custom and repair__««—
outstanding
'
foreign investment
portunities
—'
Electric power
Construction
*
v
-
.
prevail, it
J-
Trapping
Mining
'
-
Forestry
TD
dealers,:professional and
'
'
that large amounts of outside
cap¬
ital will continue to flow into the
Agriculture
is-,
*
economic
which
Gross Value of Production:
Grand
SERVICE
100.0
fleets.; With flow of capita), from
many; countries^ where
unstable
the import of capital to fi¬
upon
nance
Dorhestic
IN
0.1
v
$16,866,000,000
Trade (excl. gold)
SPECIALIZING
98.2
.1.7
'
continued
debt
and
redemptions of
cash
payable in U. S. funds,
98%
war
in: sterling
payable
through
of Total
"
States, .totalling $115,000,000,'
in mid-January, 1946;
outstanding
funds : wfll then be further reduced
Canadian
through repatriation of bonds for-*
merly
:
United
chiefly of securities of the Cana¬
minion
Outstanding
$16,561,000,000
*293,000.000
have been called for redeinption
,,
has-persisted through¬
years.
At Nov: 30,
rates
*
$3,433,100,000
•
•
r
The trend towards lower inter¬
investment of savings is
$2,557,900,000 -. 74.5
469,000,000 : * 13.7
406,200.000 - 11.8"
—
1, 1939 and Nov, dian National Railways, has been
30, 1945, the Dominion Govern¬ reduced from $1,084,500,000 to ap¬
ment's outstanding direct debt in¬
proximately $606,000,000.
creased
by approximately $13,Canada Now Independent of
400,000,000, or $1,100 per capita
of the
population. Against this / As Vi./
Foreign Capital
increase, active assets of the Do¬
Canada is no longer dependent
ability are factors which soon asquire concrete value to those who
have invested in Victory Bonds.-'.;
investment amongst the Canadian
:
'•
carried
market.
Outstanding of Total
funds. :,
2.97%
a
3,327,315*
neighborhood of $4,000,000,000, so
732.6
83-3.3
1,568.9
3,178,275 that the net direct debt is about
8th—May
800.0
2,000.0
*2,900,000
9th—Nov.
1,200.0
1,1945 (est.)—
$9,500,000,000 higher than at Sep¬
*Returns incomplete,
tember, 1939.
; ' ■"
v '
Through v domeslic : borrowing
Widespread ownership of Vicr and- profitable practice.-; Regular
for all new money requirements,
tory Bonds provides a unique and income return and ready market¬
7th—Nov.
funds
v.. %/-
%
:,
Between Sept.
.-*4
641.5
on
borrowing during this
been
borrowing
000,000,000.
.
4th—May
Canadian
Dominion Government's total cash
>178,363
150,890
-
cash
has
1, ;.1939
"CatiOUS
>
Cash Sales
-
..
'1,1940—--:—
Victory Loans—,
: ;
1st—June 15,1941—
2nd—Mar.
1,1942———
5th—Nov.
Names
V
1.1940—
2nd—Oct.
All
domestic
Appli-*
fncVi Qnloo
ivjomocr
5.
& Payroll
.
Total
Special
Canvass
'
War Loans—
1st—Feb:
'
summarized below:
are
war
'''v
\
Currency
i*i Which Payable
due
bonds,
The Canadian Government Debt
:
Loans
3%
Loan
1961-66, were selling
yield basis.
'
again
the
,
Victory
ordinary, way.
the
in
•••"General'
.
.
1
First Victory Loan in
Victory Loan organization
1941,
which
pattern
financing
market,
fA % 5-year, bonds were' selling: on United States
aggregating $500,000,000 cash had a' 1.71% basis, and the new Ninth Sterling
war,
was
Canadian War Loans
so
War I was adopted
ot^er purposes through tax¬
ation, and the remainder through
borrowing. .
i
<"
The
1945, in the Dominioni of Canada
new Ninth Vic
ic|)ory Loan
.'Successful in. World
again in this
after two moderate War Loans
proved
(Continued from page 2718)
population of about 12,000,000 has
financed
approximately 50% of
total cash requirements for war
,
V' As at Sept. 1* 1939 .< As at;Noy,W, 1-945:
(14)
Building
San Jose (1(5)
Bank of America Building
con-
v
THKLUMM u:HC1AL
yolume 162: VNumber 4444
has
The Blocked Sterling
be
blocked
in
theory.
as
•
strategic importance as the great
terminal for
air
routes
to the
Orient
ture
the
is
the
for
shortest
route,
water, to Europe.
Seventh:
affairs
of
over
vation of many
agricultural prod¬
ucts offer special scope for invest¬
in
ment
:
Canada.
Eighth:
v
The past
experience of
capital invested in Canadian Gov¬
ernment, municipality and corpo¬
ration securities has proved profitablei -This - experience should
stimulate initiative and enterprise
in Canadian investment channels.
port
>
the
on
threshold of
not
utilize
to
our
skill
and
ence
increase
to
higher
than
of
down
probably exceeded by
nation, except the United
are
other
States.
These
ments
challenge
greater
us
have
They also place
upon
the
overseas
of
and
the
ster¬
goods
importers.
drastic scaling
balances, made
a
war
balances.
goods.
come
secure
a
in
the
actions
whole.
are
expects to participate actively in
the future development of Canada
and looks forward with confidence
::;;
dead, loss
ux!'
that
idea
of
much
a
sake of
re¬
''''''
think
It is
it
impose
'
,
perhaps for this
at
necessary
Ill
SUTTER
STREET,
SAN
Garfield
4460
means
tries
't
,
'
,
-
Mr.
firm.
will
Nilssen
make
headquarters
at the firm's
New York office, 61 Broadway.
his
:
Since
a
very
-
1858
possible
*
pay
Investment Bankers
Distributors
t
of Primary, and Secondary Offerings
; Brokers
V
Underwriters
•
of
SAN FRANCISCO STOCK EXCHANGE
NEW YORK STOCK EXCHANGE
NEW
:/
YORK
•
LOS ANGELES STOCK
CURB EXCHANGE
EXCHANGfe
(associate) ;\
Los
San Francisco 4
407 Montgomery
210 W.
Street
San Jose
New York 6
61
firmly.
4
Seventh Street.
Beverly Hills
7;
$>405 Brighton Way
15 E. Santa Clara Street
Broadway
Angeles 14
Direc) Private Wires
Otherwise, it
millstone
a
ain's; neck
it'
MEMBERS
later the problem of
or
tackled
be
-
use
view
of
CO.
SUTRO
large exports to coun¬
which
exportable surplus is no justifica¬
tion for failing to make the best
will
'round
would
that
Brit¬
drag
her
v
-
-
FRANCISCO 4
•'
:
„
the
rea-.
in foreign ex¬
change. The view is held, how¬
ever, .that
the smallness of the
.
1111 Mitchum, Tully & Co.
t
Sacramento.-
Exchange and other exchanges, as
of Jan. 1 will admit David Craven,
Wiliam
G.
Jones,
Jr., and N.
Matthew Nilssen to partnership in
present to
restriction on exports to
paying
with
sterling
balances, in order to reserve an
adequate proportion of the by no
CO.
Investment Securities
»
members of the New York Stock
countries
\
i' >•„'cj :
tf':-- .9-
WILMINGTON, DEL.—Llird &
Company,
Nemours
Building,
that the Government does not
son
be
-C:
Three New Partners
production
hence.
the sterling, balances will have to
ELWORTHY &
Leef,
1
economists out of
life.
N.
Laird & Co. to Admit
as
touch with the realities of
uncertainty of the level of
costs a few months
Thomas
Secretary and Treasurer.
exporting,
to
and
President,
a
^country must export
ioned orthodox
Sooner
:
as
possible just for the
or even for the
sake of creating employment, is
considered hopelessly out of date
by most thinking people in this
country, though it is still held
among
a
minority /of old-fash¬
as
economic situation.
■'
the
from
From the
of it from the point
covering the foreign
exchange requirements of the im¬
port trade. It is also feared that
which would in qormal course be
buying pressure by holders of
available
for
export.
In
their such a vast amount of
sterling
keenness to liquidate the largest
could not fail to cause a rise in
possible amount of their sterling
prices, which would increase dif¬
balances before a settlement im¬
ficulties
to
export to
countries
poses a limit to their liquidation,
paying in foreign exchange, and
the
holders
would
outbid
also
would
aggravate
the
domestic
'-/// :;
Canadian investment business
a
.Capital structure and directors
unchanged. Other officers
include T. C. Montgomery, Viceremain
point of view of
the national wealth and income/
the labor spent on goods thus ex¬
ported is as much wasted as if it
had
been
spent on digging big
holes and filling them again. The
favorable
are
may
point of view of the country
enterpris¬
withdrawals
.
with the firm,
gstand to benefit by
exporting against payment out of
these sterling balances, the trans¬
strict pro¬
more
WASHINGTON, D. C.—The firm
name
of Ferris, Exnicios & Co.,
Washington Building, has ! been
changed to Ferris & Co., it is an¬
nounced
by
George M. Ferris,
President. Marshall Exnicios, who
was
recently
released
by
the
Army,
is
no
longer associated
steady markets for British
But while individual ex¬
porters
Change of
Name to Ferris & Co.
Many Britons consider the huge
sterling balances a blessing in dis¬
guise, for their repayment would
luctant
to
accept
large orders,
owing to the uncertainty of their
capacity to deliver, and also owing
the
Announces
imports
balances then the problem
war
secure
follow the
first served,"
to
quate, and manufacturers
dian, Egypitian, &c., holders of
sterling balances would be con¬
fined to the surplus of supplies
opportunities to their utmost
and enthusiasm.
the
British
dis¬
correct
sterling balances through exports
must be at present very moder¬
ate. Supplies are still most inade¬
prepared to pay
for
to
involved
Indeed, there is no reason to
suppose that the demand by In¬
extent.
/
of
of
not
the
Admittedly/ the actual amount
;
heavy responsibilities to utilize
our
are
prices
other
holders
that
felt,
ing creditors.:- ( htfL:
settlement which would in
any
case
provide for the,, post¬
ponement of the repayment of
to reach still
we
are
is
debts,
treatment than the less
cept,
accomplish¬
prosperity than
yet known.
us
past
stand
I •
v
widely
portion to the respective amounts
Under the existing
arrangement those who are first
on
the
spot
and
place orders
•"•'I'
essential
will become incapable of solution.
of the claims.
most of
For
is
for debt repayment in
much-needed
/
of
but to allocate the assets available
during the Washington financial
discussions,
gravely,/"perturbed
their holders, and they would be
prepared to lose 10% or 20%
through paying excessive prices
rather than lose 50% through a
settlement they may have to ac¬
our
As a people, our
ability, thrift and initiative have
already enabled
us
to *. achieve
material
standards^ of
living
which
of
exchange.
Suggestions
economic wealth.
no
form
the
ling balances
are
era
new
a
in
chances
well
are
would, mean that
foreign
We
equipped
resources, experi¬
we
This
his
"first
of
rule
It.
debtor is unable to
all
procedure
ex¬
'
^
■
accumulated during the war,
rapid and profitable^growth.
that
'7
is
a
charge
the exports would go to countries
which pay in the form of sterling
While the preceding- paragraphs
not exhaust the opportunities
for Canadian investment/ they do
indicate a promising outlook for it.
feel
'
even
domestic pro¬
consumption.
yet another aspect of
or
British
ation; but if a large proportion of
exports is used for the repayment
that their de¬
endanger sup-»
so
situation.
that if
ex¬
soon
.
-.ryj
We in Canada feel that we
available for
• become
.•- /,
supplies
would
••
do
"
(to
description
of
-official
might
There
this
Balances"
Area
hausted.
!-
Opportunities for Canadian
:y
small
balance
with exports in the changed situ¬
buyers,
duction
certain
a
500,000,000 and £4,000,000,000. If
only
a
small
fraction
of
this
amount is spent on goods the ex¬
port of which is now free, the
;;
•
.Investment:
the
Balances
essential^ for
plies
of
assets, which include hold¬
ings of Treasury bills as well as
current account balances proper)
is believed to be between
£3,-
and culti¬
use
caused
state
these
irrigation in the Prairie Provinces
and'research in the
"Sterling
use
-
,
electrification,
Rural
has
this
mand
;
; :,
of
British
well
as
amount of uneasiness. The amount
of depar¬
point
and prevent her recovery.
In any case it will be difficult to
(Continued from page 2699)
in practice
realization
The
Goose Bay in
Russia;
and
Labrador
"
\
to
its
demonstrated
-
2777
,
down
fetantiy attracts exploration work
requiring venture capital.Sixth:
Development
of
air
transportation is another channel
lor investment in Canada.; Ed¬
monton
FINANCIAL CHRONICLE
A-
•».
San Jose
.
INVE STMENT
i
;
lif
SECURITIES
Wilson, Johnson & Higgins
SAN
405
FRANCISCO
ANGELES
LOS
4
650 South Spring
Street
Montgomery
14
Street
Investment Securities
'
'
.
•
-
/Telephone YUkon 0363
." *
•
1
n.f.
i
1
300 MONTGOMERY
k. v
<'
.•
'
..
/.
.
4
;
.
:»V
v;.^.
ST., SAN FRANCISCO 10
U
7.
HANNAFORD & TALBOT-
;
•..'
V.
600
•
■{
-;/ /,/// ///./;- ;•
,
Investment Securities
~
.
37
/
.-
i
market street
• AT
•';/
-
v,-:.
MONTGOMERY
■
•
1. ,7,
V.
Telephone SUtter 5600
3 : > 7SAN Francisco
•
4
!; '> ■':
//-'
■
':
.
'
;
SAN
GArfietd 8000
MEMBERS
NEW YORK STOCK EXCHANGE
CHICAGO
519 California Street
NEW
YORK
BOARD
OP TRADE
CURB EXCHANGE
•
.
-
(ASSOCIATE)
'
r
,
—
;
•
'
T.
V
FRANCISCO 4
.
Bell System Tetetype &F 234
;.[
NEW
YORK
OAKLAND
FRESNO
SANTA BARBARA
MONTEREY
SACRAMENTO
.
1
"•
THE COMMERCIAL & FINANCIAL CHRONICLE
2778
Thursday, December 6;
1945
*•
y
■
•
.
v
•
.
\
•
1
OPv\ has
no control oyer the vol
employment or the: rate
of wages, both of which directly
affect the; volume of purchasing
Wage-Price Equation and Fntnie Outlook
(Continued from page 2700)
provide the markets for the full permitted to retain much of the
increased earnings; the bulk were
a
growing recognition that output of our productive plant; if
channeled to the government un¬
employment and wages depend wages are reduced, buying power
be curtailed;
and deflation der the excess profit and renego¬
upon, business expansion and that will
and
we cannot get business expansion
unemployment
will ensue. tiation laws. It was conceded in
the tax. legislation that provision
under a private enterprise system Top officials in the administra¬
should be made : during the war
unless the assumption of risks is tion have stated that increases in
years to cover reconversion costs
encouraged, by the chance for wage rates, especially in, the lower
and
postwar contingencies and to
reasonable profits. I do not mean income groups, are necessary if
make possible the expansion which
we are to avoid deflation. ;
to imply that all government reg¬
was essential to the resumption of
But, at the same time, and with¬
ulation
of business will hence¬
out appearing to recognize any in¬
private employment.
•;
forth be abandoned, or that it
(2)
t
would
all consistency, it is contended that
the gravest problem of the mo¬
desirable to scrap
types of regulation.
I do mean
that the excesses of recent years
be
inflation. It is
urged that, unless price controls
are rigidly enforced, the vast ac¬
cumulation of unspent purchasing
power will raise the roof. In the
words of Chester W. Bowles, "To¬
day we have all the makings of an
inflation and eventual collapse on
a far greater scale than
anything
we
knew
in
1918.; Inflationary
likely to be reduced. I make
statement in the face of one
are
this
exception to be dis¬
—
which seems to
important
later
cussed
point in the opposite direction.*
Second, instead of the vast rise
which most people had
anticipated the wartime increase
was
comparatively
moderate.
?
is to prevent
ment
in prices
pressures
Wholesale prices rose little more
than one-third from the low lev-
We
have
are
our
vastly greater.
.
.
.
teeth set in the cost
But
is
now
contended,
vast
assumed, or least
labor, leaders that
by
hidden
able
resources-are
avail¬
with
which to pay
higher
not only this year but in¬
It also appears to be
wages,
definitely.
assumed
tories
that
return
though
even
to
fac¬
40-hour
week,
earnings will remain at wartime
levels. There
a
to be
seems
clear
no
understanding of the fact that
the number of hours
worked
as
de¬
clines, production and profits also
decline.
■.
of
living, and we are going to hold
A
part of the confusion also
thirties, while the
on
like a Boston bull pup until arises out of
varying conceptions
living, including rents, ad¬
our services as inflationary watch
with
respectto , technological
vanced roughly 25%. We had, es¬
dog are no longer necessary." Mr. progress and increased
efficiency.
pecially after 1942, a creeping Bowles
was not here referring to
Increases in output per man per
rather than a running inflation.
i
the upward pressure on prices ex¬ hour
may
result
from
improve¬
Third, instead of impoverish¬ erted
by increasing wage rates. ments in
ment the war brought substantial¬
machinery or shop or¬
He was referring to the accumu¬
ganization or from
better
per¬
ly higher standards of living for
lated purchasing power on the one
formance on the part of individual
the masses of the people. Thanks
side and. the great shortages of
workers.
to longer hours and the increased
During the war period
consumer goods on the other.
<
we had substantial technical
im¬
number of workers per family,
It should be obvious (but ap¬ provements in some
real wages rose sharply during
lines, while
in
parently
it
is
not)
that
if
we
give
the war period. Even with the re¬
others, especially those which
the same pay for forty hours of were forced to shift
tirement of several millions from
completely to
work as for forty-eight hours of war
work, there has been little if
private employment and the re¬
work the supply of dollars would any.
But at the same time there
sumption of a 40-hour work week
be increased relatively to the sup¬ has been
there is good reason to believe
occurring a deterioration
ply of goods available for pur¬ of labor morale and a
that the real income of the Amer¬
consequent
chase.
ican people in the years just ahead
lessening of individual efficiency.
This
It
will be well above the levels of
is, however, only one ;as*
may well turn out that the year
pect, and the less important as¬ 1945 will show on balance a sub*
the late thirties.
stantial
decrease
in '.man-hour
pect,
of
the
wage-price
question.
As we enter the postwar period
It should be borne in mind that output.
Such was, in fact, the
it is
clear that
we
1
els
*
of the late
cost of
power.
;
„
^
plant
capacity,
the
wages
labor personnel,
and technical
prices in
financial resources,
'!
knowledge and experience
-
able provide the necessary stimuli
for business expansion. And yet
as
stand
we
and
peace
conflict
poised between war
the situation is one of
and
bewilderment.
)'
k
'*
:
•
The Prevailing Confusion
i:
basis
crucial
of
our
issue
lies
wage rates.
The current drive for
substantial increases in wage rates
is readily enough explained by the
natural
desire
to
maintain : the
-
(wartime level of earnings. As
| overtime pay disappears the simpie and obvious
j
ing purchasing
means
power
of sustain¬
appears
be to increase the basic
wage
to
rate,
f
The current wage program -is,
however, supported by an eco¬
nomic
'the
;
of
production. Of the two forces,
operating on the demand side
and the other on the cost side, the
latter
is
ordinarily
of
much
greater potency. The increase in
purchasing power is a permissive
condition, whereas the rise in costs
philosophy, It is urged that
continuance
level
of
of
earnings
is
the
wartime
essential
to
compelling
a
A
major
force.7;:r-w/-:
of confusion
source
the
widespread
with
respect
is
misconception
to
profits. The ex¬
pansion of production during the
war
period
not
only
enabled
plants, generally speaking, to run
at full capacity; but it forced them
to v/ork overtime. Full employ¬
ment of plant and equipment and
the overtime
urally
meant
in
crease
a
of facilities nat¬
very
great
in¬
earnings, just as
employment
and
overtime
full
work
a
use
on
very
gross
the part
great
Corporations
of labor meant
increase
were
in
wages.
not, however,
PACIFIC NORTHWEST COMPANY
case
as
one
the
at
present
difficulties,
namely, the appropriate level of
*
(1)
by
enterprisers wage payments con¬
stitute a
majo^ element in cost
is
One
industrial
workers,
wages constitute purchasing pow-?
er;
(2)
as
outlays by business
sary for a period of great develop? pment. Moreover, the accumulated
j 'shortages of commodities and the
power avail-
to
two-fold way:
a
income v received
neces¬
Jiabundant purchasing
related
are
In
the
year
nature
of
1919. ;
the
;
the
case
.*
.
no con¬
primary ele¬
ments affecting factors in the cost
of production, namely, the prices
of
agricultural raw materials, and
wage rates.;' The former are con¬
trolled
chiefly
by
government
purchases at prices designed to
support the income of t farmers.
Wage control since the end of the
has
war
to
all
intents
and
been abandoned, emphasis,
being placed on the determi¬
nation of wage schedules
by col¬
substantial increase in man-hour
output, while in others there
well have been
a
.In
can
practice, therefore, the OPA
merely try to prevent prices
each and every industry from
being increased more than is ne¬
cessitated
by the changing cost
situation.
Under existing condi¬
in
the
tions
OPA—no
intentioned—-can
devil
the
retard the
* only
be¬
situation and
Industrial
processes
of
sion and expansion,,. "•
reconver¬
\
*
The the case of steel. The OPA
prices cannot be
Though prices re¬
strained virtually unchanged
throughout the war period while
•wage rates advanced
rapidly, OPA
figures that with the volume of
output at present and in prospect
Ho advance in prices is justified.
No,
says
steel
increased'now.
'But OPA has
no
means
of know-
jhg what the volume of steel busi¬
ness
will
be
next
year—for
a
l
e
r
s
Steel. Moreover, the OPA is nob at
^11
is
sure
of its present decision—as
evidenced
from the fact that it
promises to rewiew the situation
in January or February when the
which
cision
it
the
OPA will
reviews
the
early next year.
Still another
lated
In
this
situation
announced
prevent
its
the
the
OPA
determination
excess
has
to
purchasing
up
prices.
industries
which
use
com#~-
PACIFIC NORTHWEST
Tjuick reconversion and resump¬
tion of employment is gone for-
power
from bidding
¥ver;
However, the OPA officials have I It should be clearly understood
no
means
of getting rid of the at this
point that the so-called
troublesome excess of purchasing price control is in truth profit
power
or
of preventing it .from //control. The test is the prospec¬
increasing. Concretely, the OPA tive rate of profits. Moreover, the
is not vested with control of ma¬ ;QPA is concerned not merely with
jor factors affecting the supply ^controlling the level of profits for
of
purchasing power:
(1)
the industry as a whole; they stand
OPA has ho control over govern¬ ready to give relief to individual
ment fiscal policies and the voK ^companies which can show dis¬
ume of government expenditures;
tress. These are of course as a
(2) the OPA has no control over rule the high-cost Jess-efficient
the
liquidation
of
government •companies. V v , -V/''--.
holdings;
control
credit
(3)
over
the OPA has
installment
expansion;
(4)
'J The OPA program as outlined
or
calls for the control of profits not
the
Only^ during the period of recon-
MurpheySM^VRE &
ESTABLISHED 1888
established 1913, and Prum-
established 1921.'
AH SEAT 187-188
INVESTMENT BONDS
&
STOCKS
Sponsor an# Distributor of
SEATTLE
Composite Bond Fund, Inc.
PORTLAND
TACOMAJ.
ABERDEEN
YAKIMA
EUGENE
•v'-t Y;
oc¬
down
And
the
as
he
has
time to begin
extension
clamp
demands."
occasion
announced
that it lis
plan for the
Price Control
now to
of
the
Act beyond June 30 next.
Since the OPA has. no
either the
over
ing
from
the
over
^
supply of purchas¬
which
power
flation
<
control
the
encourages in¬
demand sidevior
inflationary • r pressure
side, it is impossible
from the cost
for
this
to
agency
.
All that
control
they
the
do* I
can
recon¬
version and expansion-movement.
This, agency is not equipped with
the necessary personnel to
review
the cost-price situation in a mul-*
titude of industries with the nec¬
.expedition.
essary
guarded
In,. an>
Mr.
moment
un¬
Bowles
has
admitted that personnel is limited
and "we don't know how ambi¬
tious
job
a
we
are
undertaking."
•'•••
-f •
Is
Rampant
Inflation
I-1.i
SPOKANE 8,
Bell
WASHINGTON
Systenv Teletype SP 88
'
Inevitable?
In the light of the foregoing dis¬
cussion, one may well have gained
the impression that I think ram¬
the
pant inflation in
is
inevitable.
ever,
which
Such
future
near
is
not,
how¬
conclusion—for'reasops
my
shall briefly indicate.;;
I
First,/available
evidence indi¬
likely to have
appreciable
decline
in
the
prices of agricultural products,
both foodstuffs and raw materials,
during the next year or so.; The
great
problem with which the
agricultural agencies in Washing¬
cates
that
we
are
an
ton.
are
concerned is not how .to
prevent
farm prices from rising,
to
prevent ttjem from
but
how
falling—in
tately.
some
-
We
are
lines
precipi¬
committed tq a
policy-
of
maintaining
a
floor
agricultural prices at 90%
parity—which would permit/ a
under
of
decline
of
roughly 25% from re¬
/ ■"*;";
Second, the supplies of most of
cent'' levels.
the
basic
materials
raw
also
are
plentiful. Hmvever, in this field
the possibilities of price declines
might be checked by rising wage
costSv»V.^;''"l^i;vvv"-/i' 4;•
'
In the field of industry, the de¬
termining factor during the corping year or two will continue to
be the movement of wage rates.
If labor succeeds in
higher
wage
industries
as
gaining much
rates in such basic
steel, coal, and in
railway transportation, the pres¬
sure Tor
higher prices to coyer
increasing costs will quickly ex¬
tend
throughout
price
structure/
time,
wage
industrial
the same
rates have to be ad¬
the
If, at
vanced sharply in consumer
goods
lines, the upward movement will
be accentuated.
:
r
The; outcome of the present in¬
dustrial conflict is, however, far
from
certain.
After gome
weeks,
perhaps months, of stagnation- in
major lines of industry settle¬
ments may
possibly be reached
which may involve comparatively
moderate increases in labor costs.
If
should
this
prove
to
be
the
case,.then I would conclude that
the accompanying price increases
would not be great.'
>1 -J
; But still, one may ; ask, will pot
the acute shortages of consumer
goods inevitably lead to a mark¬
ing up of prices all along the line?
In considering this question one
must bear in mind that—assuming
industrial peace—we should have
in a wide range of consumer goods
a
ranid increase in; supplies. Thje
is at its worst just now,
being affected by reconversion
adjustment problems, by la¬
bor shortages, and by a tendency
and
to
postpone deliveries and collec¬
tions until after Jan." 1—when
the
profits tax goes off.;' ■■ •(•
The really acute^ shortages ar£
confined largely to the field qf
durable consumer goods; and here,
as
we
shall see, there is a safe¬
excess
EXCHANGE BUILDING
SPOKANE
that which
as
situation
heller, Ehrlichmqn Company,
SECURITIES
steel
products. Meanwhile, the months
elapse and the; opportunity for
The Pacific Northwest;
paniev Ferris & Hardgrove,
re¬
the price situation in steel
more
than guess at the extent of the would be necessary if wage rates
change one way or the other in are increased in the industry, and
if steel prices are in due course
particular
industries. ■ We
shall
have to wait and see—wait until increased,automatically prices will
bave to be revised in many re¬
conditions are more stabilized.>
other
through itr predecessor
reach
situation
since 1913—
Markets Maintainexirin r'-r
this
depends upon indeterminate fac¬
tors—among which are strikes in
fhe
industries ; which
consume
• distributors
e
how
matter
Well
view of
OPA's Troubles
spiral such
curred in 1919-20. "The OPA
must
be prepared to suspend or
situation.
when
decline. But it is
less- indefi¬
or
repeat, is to slow down the
bargaining—with the ad¬
supporting the the¬
sis that wage rates should be in¬
creased to prevent deflation.
;
may
impossible at this time to do
more
stated (hat
the OPA must be prepared to
pre¬
vent a recurrence of an inflation¬
ministration
~
a
but
lective
operating figures be¬
product ^ear-end
come available. But whatever the
tive
efficiency will show wide
^figures
for
a year of readjustment
variations in the different divi¬
like 1945 may sho\&, they will not
sions of industry. No generaliza¬
be true guides to 1946 prospects.
tion applicable to
industry as a
The steel industry hestitates be¬
whole can possibly be made. In
some
lines there may have been cause of uncertainty as to the de¬
bond
• d
pur¬
poses
now
version
nitely., Mr. Bowles has
ary
.
two rof the
over
situation with respect to
no
• underwriters
during the
■
Similarly, the OPA has
.
trol
'
possess
of
ume
guarding
tance.
factor, of
These
great impor¬
durable
.
consumer
goods include automobiles, refrig(erators, washing machines, vac-
Volume 162
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
whefe operations are not tied up
by industrial strife the shortages
of key parts may serve to impede
!fuum cleaners,
electric irons, toastclocks and watches,
*
radios,
ers,
"
furnaces, and heaters, and stoves
ahd ranges. In 1941 expenditure
these Commodities amounted
"
ito 6.5 billion
dollars, or only 8.5%
Ol total Consumer expenditures in
the United States. Thus, even if in
these lines there were a great increase in prices, thej effect upon
the
Hope for the LOnger Future
As
look
a
little further for¬
encouraging.' Once industria 1
peace" is restored and wages and
prices are brought into something
like harmonious relationships we
Should- enter upon a period of
very - great activity, an activity
Which in the first stage will be
rooted in the replacement of con¬
sumer goods.
' A '• '
I have no fear that the;moment
; isf no disposition to invite extensive new cbmpetitiori by pushing
prices up during a temporary in4
We have made
teryai when* demands
tionally
iargev/;; The
evitably have a business recession/
sound
are
of consumer
excep¬
for
several
years
.
1'.
thenr. y"
on
Eighty
\ for
a longer period ? of
prosperity-.exists in the very ex¬
tensive shortages of houses and
capital goods.v'-i;^
In every great" war many types
of capital goods production are
severely A restricted.
I refer r eapecially to the construction indus¬
try, including both residential arid
Commercial buildings, and to every
Important . division of industry.
There is inevitably a large accu¬
.
rather than to
gouge consumers while the opportuiilty exists.. The- intensity; of the
competition "in vthis : field iswell
illustrated by the effort of the
labor unions v to force General
Motors td terms throigh fear that
theiothej! companies Might get the
lump
g6od the shortages
goods we will in-
Support
obviously
policy -is to rSet prices atva
levelwhichwiilsustain'demand
*
we
ward the prospect in much more
over-all cost of
safeguarded by the fact that the
leading companies have ■ always
followed aloWprice policy de¬
signed to expand markets. In the
automobile industry,
moreover,
there is intense competition among
the major; companies; and there
'
industrial history.
our
living would
hot be pronounced. The price sit¬
uation in these fields is,1 however,
i
' :V-
'
mulation of deferred maintenance;
per cent of the durable
plant and equipment becomes Ob¬
solete;; and quite as important, the
ate produced by about 20
companies: and the balance by 25,000 normal' growth of peaeetirhe- fa¬
cilities is arrested.;
r companies.
Thus, in the durable'
v In - the
replacement period ; of
consumer
goods industry :>!as a
1919-20 there was comparatively
Whole, prices are determined prilittle
expansion
in >the; capital
r
iriarily by the policies of a few
major companies. By virtue < of goods; segment Of. the economy.
their size* many' people are wont This,7 was especially the case.. in.
railroads and public utilities /and
to look upon these
companies as
in the housing field where a Com¬
monopolistic
in character, But
bination of. factors retarded con¬
incontrovertible! evidence.shows
that they have- not pursued monop¬ structive developments.Thus'after
olistic price policies, but on. the the collapse of 1920 and 1921 " the;
new vperiod> of
expansion WaS
contrary that they have sought
based primarily upon the rehaP
^'steadfastly; to, share, the benefits
bilitation arid -expansion bf /these
of
technological progress with
industries.
/ •;
workers,and consumers alike, ' •'
At the present time the require¬
consumer goods other than houses
■
£ Realism with Respect to Wages
The impression may, possibly
,
.
have been given by the discussion
.
thus; farrthat
■
I
am; opposed
to'
f higher wages.- The fact is that for;
25
I have stressed the im¬
years
portance Of high real
wages
for
ments
in
these
fields
are
very
hiuch:
larger than was the ease
after the last; war. T'hisiSdueto
the
fact
that
we
have; had
sub¬
normal, construction. and tgrowth
for
a
much longer period ofryehrsi
In the fields of housing and
fail-
road
construction. replacements4
masses Of the. people.
Only
Will have been- at a -very ; low
expanding mass consuming
level for nearly 15 years. At the
potver in proportion to mass pro¬
same
time, in both fields meW
ducing power, can we maintain a
balanced -and continuously pros-; technological developments--haye
tendered; a larger proportion of
perous economic system.
But on
the existing physical properties of
the other hand I have insisted
the
by
equally strongly}-1 that twagelrates
conform, with
production
must
'
j realities. If at this juncture, when
both factories and workers are
returning to the 40-hour week,
^
we
try to retain the wartime level
of take-home pay result can only
be a reduction of our real "buying
power.
.
.
; v;
Moreover, in the struggle to ob¬
tain
the impossible, untold eco¬
nomic injury is meted out to the
millions* of unorganized and pro¬
.
fessional
workers,, who are the
real forgotten men and women of
America.
!.s; >■.,
,/
"
.
Davis in Cleveland
output. 1 incline to the view that
the first half of 1946 will be One
of the most difficult periods in
for
:
2779
Obsolete, character. .In the in¬
of productive 'efficiency
an
terests
CLEVELAND, OHIO—James P.
Hart has become associated with
While it is hardly in the nature
of news to those who derive their
1945,
livelihood from the
States'
purchase and
sale of : State and municipal se¬
curities, the fact is that State
governments again, in the fiscal
year ended June 30, last, made a
.
of
their
The
State debt/ which proceeded unin¬
terruptedly
through
1940
from
enue, the
announced
by the
board of directors. The board also
©f
Burnham D. Mitchell as a director
Vice
and
Muir;
!
President, and James
General Manager.
as
Dobson,' General Manager
since 1934, first entered the bank¬
ing business in his native town of
Sydney; N.S., as a junior in the
local branch. He was made assis¬
Mr.
tant general manager in 1922 and
in 1934 he was made general man¬
He was elected a director in
:1939; and vice president in 1942.
He v was / president • < of the Can¬
adian ^Bankers'
Association
in
ager;
1937-38.
/
A;
•
year
and
shrank
from
bank at Toronto, becomes a
direc¬
N.S.,
Merigomish,
: the
in
ence
Wilcox Building. Mr, Jan¬
in the past was a partner in
Dean Witter & Co,
>
*
ney
issues
in
$186,000,000
State
finances.
State
tax
$3,313,000,000 in 1940
$4,255,000,000 in fiscal 1945.
revenue
Booklet
col¬
from
State
Manufacturers Trust Co.
so exceeded ex¬
sizable surpluses
on
Veterans Loans
Recognizing
Of
bankS to
responsibility
the
serve
the desires of
economic
opportunity and security, and the
need for
mutual understanding
returning
between
the
veterans for
banks
and
,
veterans
New
that
many
•
Serves have been accumulated for
debt retirement and especially for
post-war
construction
without
borrowing.
^
.
--J:.
-
Provision for debt retirement
from
averaged
revenue
000,000
annually
$320,-"
1941
for
>
1944, inclusive, the largest
i
penditure. having
Vice
President, entitled "Oppor¬
tunities, Qualifications and Risks
Small
in
Business
for
Veterans
Under the G. I. Bill of
Rights." In
his official capacity as Chairman
of
the Advisory Committee of
Veterans Administration for New
York County, Mr. Paddi was re¬
to
cently invited to make the talk
by the-Educational Department of
the United States Naval Hospital,
St. Albans, New York.
ex-
.
been
$397,-
000,000 ilk 1943.
Washington and General Market
'V/.'
•
•
•
'
■'
.
State and
and
•
•
4
;
.
Municipal Bonds
Glasgow
was
made
su¬
pervisor of Ontario branches and
dn .1935
appointed
was
assistant
U. S. Government Bonds
general manager. He will continue
his headquarters in To¬
to make
ronto.
'
: '
outiook is there¬
favorable. If we can
clear up some of the confusion
which now exists, and get down
The longer-run
very
-
work,
riod
of
we can have a long pe«well-rounded prosperity.
bank's New York office where for
three
years
he
pervisor for
America. He
was
assistant
Central
was
and
made
The NATIONAL BANK
.
■'/
OF SEATTLE
of COMMERCE
INVESTMENT DEPARTMENT
/
SECOND AVENUE AT SPRING STREET
su¬
SEATTLE 11, WASHINGTON
South
assistant
Bell System
Tele. Elliott 1505
Teletype SE 84
general manager in 1935.
.
"As
we
I
stated
at
the
beginning,
have available in America to¬
Specialising in
day the physical resources and the
scientific and technical skills re¬
Win. P. Harper
quired to make these^early post¬
war
years a period of genuine
prosperity.
But unless,; through
the industry-labor conference, or
by other means#, we can establish
'•
realistic wage-price relationships
We shall; produce hot full efnplby^
;
ment,
satisfactory profits,
and
abundant; revenues; for fisCal re¬
quirements, but, on the contrary,
low levels of production, unem¬
ployment, meager profits, and in¬
& Son & Company
FOUNDED 1892
Belt Teletype
—
SE 234
MUNICIPAL; CORPORATION BONDS
PACIFIC NORTHWEST SECURITIES
Bought
creased federal deficits.
■
Quoted
Sold
«tfftfaVorable Outlook for Early
X 1946 '
The business outiook for the early
\
■
v,
.
Wm. P. Harper &
•part of 1546 is certainly.hot pro¬
pitious, It s^emS highly probable
that some months will
elapse be¬
fore the wage-price issues can be
so adjusted as to permit a strong,
I
Hoge Building
well-rounded forward movement.
Despite the stimulus flowing from
pent-up demands prod uction
sfeems certain to be retarded. Even
N
C
O
ft
P
O
A
pk
SEATTLE 4
Bell Teletype—SE
Ar
.
tr e
1
"
HARPER BLDG.
p
^
Tacoma
:
—
Son & Company
1504 THIRD AVE.
SEATTLE 1, WASH.
Washington
362
•
★
of
problems involved in
resulted in most States.
These small business loans, Manufactur¬
surpluses mean not only that debt ers Triist Company, New York, is
loads have been carried easily distributing a booklet containing a
during the war, but also that re- speech by Mr, John B. Paddi,
penditure
experi¬
gained his iirst banking
branch. In 1934 he
bond
new
pany,
capital
;
Secondly, the phenomenal rise
jn national income was reflected
tor and Vice President. He is a na¬
of
than
has
become
associated
with the Pacific Northwest Com¬
.
iBurnham, L. Mitchell, since 1935
Assistant General Manager of the
tive
less
outlays,
rose
appointment
PORTLAND, ORE.—Frederic F.
Janney
1941 to $32,000,000 in 1944.
j The appointment of Sydney G.
the
bonds issued each
much
were
to
Dobson as' Executive Vice Presi¬
dent of The Royal Bank \of Can-
announced
rev¬
for
At Royal Bank
been
financed from
was
trader; Prior thereto he
Paine, Webber, Jackson
as
Frederic Janney With
Pacific Northwest
substantial part of these
a
a
was with
& Curtis.
lections, apart from payroll taxes
unemployment compensation,
ThreeNew Executives
has
for
a
fore
t6
Since
in
add
Union Com¬
Building. Mr. Hart was for¬
merly With Hirsch & Co. in Cleve¬
merce
land
outlays
of
contraction
James Muir, the new General
high- national income, we
need and-should have, a replace¬ Manager, has been a banker since
ment and expansion of the na¬
boyhood.
A native of Scotland, he
tion's physical plant and -equip¬
joined The Royal Bank of Can¬
ment? on a scale greater than that
ada in 1912. He served in the
ever
known in our history,
v
and
;
.
wartime
'
Paul H. Davis & Co.,
upon
capital ex¬
penditure was reduced sharply
by wartime restrictions, espe¬
cially those relating to construc¬
tion, and by shortages of man¬
power.
Thus
capital
outlays
declined from .$737,000,000
in
1940
to
$326,000,000 in 1944.
indebtedness.
1930.
since
twofold
the
economy
finances, the Department
Opportunity
The
period, accord¬
ing to data compiled by the De¬
-,
from
war
„
reduction for the
partment of Commerce, was 11.5%,
thus
reducing
the
outstanding
dollar balance to $2,471,000,000.
This figure represents the total of
gross
indebtedness and is the
smallest aggregate for any year
the
said.
further substantial cut in the vol¬
ume
resulted
effect of
Yakima
The Wheeler Bill
on
Future Railroad
given the'option Of paying an as¬
and
retaining owner¬
the ICC wiping out stockholders* ship before being wiped.out.
To¬
Justice Reed, writing the opinion day he has no option.
To punish
of the Supreme Court in the St. the ' bankers,
the
stockholders
Paul case, stated:; "The power of were vicariously
afflicted, i The
the court does not extend to par¬ reorganized railroads were taken
(Continued from
refused
review
to
2705)
finding of
page
the
.
from
ticipation in all responsibilities of
the Commission.
Valuation is a
them
and
were
REVENUE TON
/
V
-
MILES
them "worthless."
\
CLASS I RAILWAYS
;
1929-1942, AND ESTIMATED. 1947-1949
The
old
procedure
in
priating
railroad
)'
managers,' who. obtained huge fees
in
the
great merit;
it
But
process.
had
The stockholder
one
<
'.•>
The
Bill
S.
treat future bankruptcies.
•
was i
are
If it is
nsi
i»i«
»5J
im
i»»s
im«
mr
ism
im»
t*4o
imi
im«
n*r
mission gives
of national income
from $451
current
capital
B,
The
to $2,514 million.
or
working
there
\XThe
future
we
ICC
1949
*
♦
in the 1930s '
likely, to go broke for many '
Does
degression
as
a
the
1944,
would
years
basis of
ICC
forecast
not
be
traffic"
"postwar
these estimates
of
railroad
have
$15 to $40
been
earning
share.
They
per
the St. Louis South .Western $130
ceeding the ' high
but
levels
of
ex¬
1929
and 1941.
Postwar Rail Traffic
y
r
or
$56
more
a
share and
in
excess
profits taxes than the entire issue
Dead
outstanding.
Should
Exceed Peacetime Levels
Pacific
share,
per
„
milk;
:
The Interstate Commerce Com¬
The
What is the basis for the
si tion
to
the
that
the
cows
Hobbs
p.
give no
capacity to pay such
taxes is clear evidence that there
cited
and
S
Oregon
We have
„
BtJtNKENSHIP, GOULD & BLAKEIY
X
'/'-x'x/XxP
Unlisted Stocks & Bonds.
,
delay
the
in
pending
pend¬
ing cases are already of record. V;
No long-drawn-out investigation
in any case would be necessary to
enable the court to pass judicial- XX
ly upon
mination
the Commission's deter¬
of earning power.
The
standards by which the new capitalization is to be measured, that
sible
the
from
files
in most
missioner and
introduced
been
into
"We
the
conclude,
y-X" ••• •*v •'X.V
f
*"
■'
*>•
.X
X
V
X1
A
\
X%:'XX
■
l-
XXrX'X
Bell System
*
Delay,)
however, would be preferable tq *
confiscation,^'
lions
:
Hundreds
dollars'
of
are
is
passed.
that
specu¬
the
Hobbs
if
benefit
will
But
Look
-the
at
-
1945.
,
bonds that sold at $1 or less *
have risen tor $50
.
passed.»
1940 and
in
*
defaulted :
of
price
bonds
.
speculators
already benefited because
railroad
;
of mil-
involved.1'^
The opposition says
-
and higher. The :
of all- defaulted bonds ^
risen
1000 %x
are
But stocks of
y
selling at low-
;
prices than in 1932,
They are
^
this argument is con^ ' 1
Besides,
tradicted
its
by
own
First the ICC says
Wilcox Building, Portland 4, Oregon
* /
portion of:
of pending plans.
progress
'
.
that
therefore,
of this
enactment
practically zero.
Russell. Hoppe, Stewart & Balfour
4
cases have *
the records»
the bill will not tend to delay the
er
PORTLAND 4, OREGON
,
Com¬
of the
already before the courts.:V \.y
defaulted rails
/
V
is, the actual investment and the.
19a valuation, are readily acces- ;
has
.
.
cases.
All of the facts in all of the
ayerage;
,
.
(Report,
reasons
"It is not believed that the pro¬
any
^ome
continuing interest in all Oregon
a
CX
visions of the bill will result * in
HAVE
X.X
is
But the
the H Hobbs ^ Bill xwasn't
]r:
It
7).
Bill
■'
oppo-
Bill?
imously denied that delay would
result
lators
Pacific Northwest Securities
<
current reorganiza¬
House Judiciary Committee unan-\
levels
1935,
.
tions would be delayed.
Missouri
to
-
XX
are
102
for 1947 to 1949, not at depression
of. 1931
We
110
paying huge excess profits
taxes per share to the Treasury.
In 1944 Rock Island paid $40 per
share in excess profits taxes, the
December
in
by the Hobbs Bill?
.
;
100
national ^income
:
absurd :
seem
107
are
reorganization.
itself
not
96
stocks
from
it
make
.103
upon
:
didn't go broke
said
The railroads in reorganization,
are declared worth¬
less"
A railroad C
1890s.
1880s and
120
whose stocks
ings of Congress in 1935 that these
used
WILCOX BUILDING
:
•
This is twice the X,
1930.
114
levels of 1929 and 1941.
its
based
1948 :
reorganiza¬
tion plans and new capitalization less, are showing income before tax
never before equaled in American
on the earnings of the depression
history. These so-called "worth¬
years, 1931-5, even though Com¬
But
,
.
hi
freight and passenger traffic vol¬
ume in the early postwar period
should equal or exceed the record
are
missioner Eastman stated at hear¬
INCORPORATED
may
Don't
,
...
executing a policy based on the
assumption of permanent depres¬
sion* at the 1931-5 level.
t 4
OREGON
hiV
When >
now.
up
early
•
average
Based
-
5,
the
for 1931 to 1935,
used by the ICC as a reorganiza¬
tion base, was $58 billion or about
half the above estimates..
billion, from a
deficit of $1.2 billion to a plus of
$1.7 billion.
Total debt declined
Building
right
108
C
assets
Yet
1947
A
$2.9
rose
$400 to $320 million.
PORTLAND
for
Estimate
$9.7 billion to $8.0 billion.
Interest
charged declined from
Bank
,
legislating for an abstraction when ;
reality faces us.
—Billions of Dollars-
from
American
detailed estimate
nancial condition of the railroads
Net
■H
a
postwar period as follows;
rose
Investment Securities
car¬
a
-provisions for remote
contingencies, legislated in S. 1253)
and to ignore present necessities
iMt i*4»
the ICG plans have been com¬
pleted, beginning in 1938, the fi¬
has improved sensationally. From
1939 to 1944 for all Class I roads,
BUTCH ART
'
,
-
the
gross income rose from $4.0 to $9.4
billion.
Net income before taxes
HESS &
dealing
should
figure of the great depression of X-
pres-
ent bankruptcies, for a new eco¬
nomic situation has arisen.
Since
4, OREGON
>
-
♦
met
PORTER BUILDING ;
1253,
insolvencies,
cleaned
y
tion since
imo
PORTLAND
*
')X
forget that 40% of the nation's
mileage has been in reorganiza-
Hemphill, Fenton & Campbell
*
be real-
ization for two generations.
years. :
Inves tmerit Sec^irities
w
jjiot be another c railroad reorgan-
to
INCORPORATED
S.
us
1,There, are 19 major railroads
they
is not
.
•.•if
our
that
^
Bill
reorganization
is designed to
j sound it should apply also to
,
pathetic spectacle to
government blindly per¬
sisting in a wrong policy.
XX
XX^XxXXX-'
1253
future
Let
be amended to include these
stockholders., X
XX-XX'!
The
with
see
institu¬
function .limited to the Commis-* tions^ like insurance companies.
sion, without the necessity of ap-* Banking and legal fees could be
proval by the courts;"
:
rigjdly controlled without expro¬
::
bankruptcy should be reexamined.
It was abused by reorganization
istic.
riers. What
transferred
the powerful financial
to
''
r
is definite earning power in these
stocks and it is idle fantasy to call
.
sessment
■
xxx
advocates.
nothing is left
for the stockholder and therefore
Teletype PD 60
the
wiped
stockholder should be
Then
out.
it
that specula-
says
tors, expecting earnings, will buy '<
this
"worthless"
JOHN GALBRAITH & COMPANY
foolish
no
PORTLAND 5, OREGON
There
:
p.
Quotations—Bids—-Offerings
^
;
Porter Building
Correspondence Invited
X
'
Bell
BEafcon 7151
:
,
Portland 4, Oregon
System Teletype PD 83
a
re-
-
is eligible^,
waiting list and; no.
no
"
■'
>.
>
;
f;/'1
.
present- holders are
.
over¬
whelmingly the holders of several:
years
,
a
X/X
The
Vy
is
black-ball.
since 1928
is
It is not
stricted club. Everyone
Pacific Noithwest Securities
AMERICAN BANK BUILDING
earn-
speculation
democratic affair.
£. M. Adams & Co
of
prospect
Besides,
ings.
We have specialized in
benefit:
to
to buy worthless secur- :
as
with
ities
stock
Speculators are not so
by the rise.
show
term
ago.
few
The
transfer
changes.
stockholders
books
These long--.
can
benefit )
only if somebody buys
the.stocks;
and bids up the price.
True, the
new
.buyers, would benefit*-
•
^B.utx
•
a^
/ :
^
wrni^'sRrr.ttstyssrtt
?r:r.r.^-^.»*'^^'^'e!ttA.|
^
THE COMMERCIAL & FINANCIAL
i. ,Volume 162 f Number 4444'/
'
CHRONICLE
2781
n,,v
3*
-vthey must necessarily be limited
relatively small amounts of
stock, perhaps 1% of the total is-;
■■'■to
v
.
Howeverji the old stockholdor the other 99% of the issue
sue.
ers,
would
:l
./,
great benefit.
The old holders cannot benefit if
<
;
i 1
v
common stocks;
almost 300%
solvent
Common stocks
the
I on
-
rose
for solvent rail-
average
Stocks of roads barely es¬
roads.
,
caping default, like Baltimore &
Ohio, rose, 1150%, and Missouri
'Kansas
::
v
;
Texas
defaulted
of
stocks
rose
roads
frozen at practically zero.
3of defaulted railroads rose
were
Bonds
on
the
1000%. Some bonds rose
3 average
5000%. But their stocks were
over
•
But
6700%,
•
,
frozen
zero.
near
tion plan for the Equitable Office
Building (New York).
The plan
made
provision
no
whatever
est
and should not
levels and reflect
/• lions,;
There
;
was
..indeed, wild
speculation but it was in the new
r'fwhen issued" stock by new hold(ers
while old holders were frozen
wiped out. The old stockholddid -not benefit; but could
3 and
i ers
;
railroads
in
the
West,
the Canadian border to the
Jtio Grande.
IV
"
33 how?
*
might result in unjust
debenture
the
for
the next few years."
over
therefore
He
Tribune,"
"Herald
York
(New:
that the
suggested
July 14, 1945.)
33^" 31 :3l3r'3v-: -.3v33V ■•'i -'3'33';3j}i
VI
,3.
Why should not Bill S. 1253 be
the best fea¬
amended to include
Bill, in order
Missouri
tures of the Hobbs
Figures available at' the Se4
curities 1 and ^ Exchange - Commis-i
Pacific, St. Louis South Western
and New Haven, which have paid
most of/the over-du^ interest on
senior bonds?
;
^ ision,: the New York Stock Ex-r
Of
the"
•
reorganizations ^ since
,
change and at the transfer agents 1940, in 13% of the mileage, stock¬
holders retained an equity inter¬
:of the railroad companies'.stocks
r
*
est because the plans were Volun¬
show, significant statistics. Of the
tary as under the Chandler arid
3 * 'i total number of stockholders, beMcLaughlin Acts. But in "28% of
;. r ^ tween 87% and 93% own less than
the
mileage, stockholders were
300. shares: Obviously, most railwiped out and received nothing,
: r. road stockholders
are small peo-
3?
/
-
.
•
t
.
Who:. will
the
own
railroad
^ Shares Jf ;the Hobbs Bill is not
r;
%
passed? Insurance companies and
the savings banks. will become the
of the railroads.
Look at
t
•.
>
/ owners
U
?
the institutions
:
t
-
:
f
v-
represented on the
Board, or as Trustees of the roads
already reorganized. The list looks
like an officers' directory of insurance companies.
Little people
from-Maine to California,/ who ex¬
3
•
powerful financial institu¬
i
V
Stockholders
4
are
victims
new
of
a
quickly, and either passes the
or an S. 1253, amended
include the Hobbs Bill. In sev¬
acts
Hobbs bill
to
roads
eral
; 3 3
3
legislation
are
which
of execution,, after
verge
losses will be
the
on
irretrievable.'
ROCKY
MT.
op¬
indebtedness.
without
or
cash
a
con¬
might be appropriate,
would give them an opportunity
to participate in. future earnings
as
of the company.
33" Su c h deferred
participating
stock, if and when issued, would
be no-par-value stock
entitled, for
example, to a * dividend of: $X
after, say, a dividend of $Y on the
proposed new common issued in
Donald Royce
connection
for debate?
tion.
will
would
divided
be
between
the
stock issuable under the
Is
not
Leland
<■>
If the bill is
democratic process
vent discussion?
33
Mahaffie
pre¬
is
Paul E. Youmans
The legislative
body like the Congress is elected
for
relatively short terms and
therefore
is
responsive to 3 the
public will. Shall the administra¬
tors dictate policy to the legisla¬
tors? Shall administrators, beyond
the control of the people, be al¬
kill it?
to
Rice
to public opinion.
unsound,
public analysis
zt
Commissioner
L.
re¬
ported opposed to the Hobbs Bill
because its enactment will involve
plan arid the proposed deferred
participating common in an ap¬
propriate
ratio, y,for
example,
too 3much detail work in making
current
railroad
reorganizations
more equitable.
Shall the Senate
equally
share
for
share."
(It
might be convertible into a frac¬
allow such petty considerations to
public have spoken. Their
Representatives'have acted. Shouldj
deny
to many
hundred
stockholders, mostly
small people, from Maine to Cali¬
not the Senate Sub-Committee reH
tional share of common.--Ed.)
thousands of
fornia. ; By contrast the SEC
may
vii
3
'the ,subject. of. railroad
reor-r
ganization is large and affects
many/Interests.
But ! one interest
is mot
being heard; ~ That in¬
oiir * privatelyIndeed', it un¬
derlies our whole system of pri¬
vate enterptfse.
And that inter¬
est is the private investor.
This
even
terest
underlies
.
railroads.
owned
Bill; deals solely, with the credi¬
tors, as! if the
owners were
existent
if
or
as
owned the
Those
the
roads.
who
the
courts
In
and
the
ICC
in
115
letter
a
ization:
on
Several billioni
ened
stockholders
Senator B.
for long
terms and therefore is insensitive
Senators.
own
plead ~
3-
-
•
has'been v a
Commissioner
er.
in 1939 and
ions
showed
an
dis¬
courageous
behalf of the stockhold¬
on
Miller's opin¬
1940 in several
cases
constructive
instinct for equity
cited
here
imagination,
and business
•
>
ESTABLISHED
Commis¬
quoted
ICC
Ex
Canadian Securities
729)^
railroad reorgan-
Government, Municipal
have stated, is the maintenance of
national
Public
railway
vided
maintained
and
without
Utility, Industrial
capital
can
treatment
of
vested which will invite and
the
introduced
a
resolution
of
carriers," it
neither
will
comparatively
is
resolution in the House to inves¬
The fact remains, how¬
tigate railroad reorganization and
pending the results, to suspend
action by the ICC and the courts.
the 1920s.
traffic
nor
that there is no absolute cer¬
ever,
tainty that this is true. The forces
244 St» James
ganizations and why solvent roads
kept under the j urisdiction of
again attain the levels of
rail
ever
reor¬
the courts. Representative Chaun-
ourselves
Reed similarly
cey
Toronto " New York
Limited
to
that
earnings
convince
-
Royal Securities Corporation
ate Coriamittee on Interstate Com¬
are
to
Wire connections: Montreal
en¬
further investment."
courage
merce
^quoted and dealt in.
Dominion-wide service.
3
only be assured by
capital already in¬
investigate current railroad
easy
All issues
a
contiriuous inflow of capital. Ob¬
viously, also, such an inflow of
the
competitive attack of other types
of
preted, the Commission's hands
arc tied by the courts, and the
courts' hands
are
tied by the
railroads
Many t h 0 it s a n d
stockholders were wiped out because of this legal impasse.
Such
a statute must be changed.
;;'3'
:
,
^
the present
situation was stated in an opinion
by Judge O. L. Phillips in May,
1945, in the Circuit Court of ApThe
v
:
*
•
■'33 33
peals:'\7
'
3
'
3
-
•
'
:•
injustice
of
333:;%3' 3~ ..3.3
impelled to suggest that
the elimination of the holders, of
bonds—and of the stockholders
on the basis of a valuation resting
"I feel
economic
been
change which have
so adversely to the
may 3 conceivably!
re¬
operating
verse
themselves
in
another
de¬
cade
despite the gloomyc present
prospects of such an occurrence.
introduced
Toronto-
Halifax
Hamilton
Montreal, Canada
Street West
Saint
John
Calgary
•
•
•
Quebec
Vancouver
Ottawa
-Winnipeg
St. John's, Nfld,
a
I
"
^i|
n
*
"Nor
it
does
earnings
leach
may
their
follow
not
that
levels
on
not
reduction
and
In the field of
through rail
con¬
coordination
lie
committee. . , 3
conclusion that:. only.
through corrective legislation or
before
is
a
Senate
my. -
and
seek?;■
hundreds of" millions of dollars,
tee unanimously in June, 1944, or
In view of these circumstances,
i
ductions
brought
about
..
„',Tn
order
to
give
the
Hobbs
The
by the
18
Bill
vote,
•'i
3-/' .;/'''3-R3:3
approved
-ii
•n
House Judiciary Commit¬
months
ago.
It
unanimously,
House
•n
was
in
months
February,
It is
ago.
passed
minus
DAVIDSON} 8 ROBERTSON
the
m 3 MEMBERS
one
266 Notre Dame
Senate Sub-Committee of the Ju¬
Committees "
Wheeler.
under
3
on
these,
two 3
Private
Committees
themselves,
a
!)
^
^
wire
connections
/
.
■
f
Hotel
Rouyn, Quebec
Telephone: 1819
Telephone: Plateau 3971
Chairman
Of the Senators
:1' '
Windsor
St. West
Montreal 1, Quebec
Commerce
diciary and Interstate
MONTREAL STOCK EXCHANGE
MONTREAL CURB MARKET
MEMBERS
1945, or 10
locked in a
whoexpressed
majority favored the
present Hobbs Bill. Why is it not releas^,.
through
consolidation and coordination.
••i
have- achieved
government ownership of the
railroads, but insurance-company
ownership.
Is this. the end we
possibilities Of savings of experises
which repeated and independent¬
ly made studies have estimated at
an
CANADIAN
We confiscated the small
owners.
stockholder
return to the rails.
solidation
un-
government/ under¬
just an<| full compensation to the
,
3 It
labor
a
though past traffic volumes do not
cost
When the British
ownership.
der
or
even
•ii
•'i
•ii
•n
•<i
took
rail
approach
former
A conscienceless attitude either
by the ICC or by our legislators
must
inevitably destroy private
public ownership and nationized the Bank of England, it gave
estimate of future I believe that we ought not to cut
off the present
shareholders of
earnings is-harsh treatment. . . •.
this or other railroad companies
The injustice
.
. has aroused the
from all possibility of participation
attention of Congress and correc¬
in any recovery of earnings re¬
tive legislation has been intro¬
duced.
H. R. 4960 has already sulting either from a regaining of
traffic volume or-from cost Re¬
passed the House and is pending
wholly
I
"j,. >
Chairman Wheeler of the Sen¬
"Looking at the decline of rail¬
ably against such a course." Under
the
present law, as/ inter¬
Commission.
With!
Wheeler and their
K.
'
•
willi
Sub-j
willing to bear the
fearful responsibility for such un¬
just, senseless,-^ruthless policy?
To avert this fate* let the threat-;
appointed
"The end in view: as we
adequate
be too late.
in. private
(193T,3 page
a
fori
non-i
3,3
.
believe
Eastman
promptly
A few months from now
Committee
administrative body like
is
wishes?
dollars invested in good, faith
be confiscated. Is the Senate
have
of power is
An
their
government
3
the small stockholders.
sioner
debate?
democracy^ the ultimate
in the elector¬
a
ate.
frustrate
lease the Hobbs Bill
repeatedly pefriiitted' revision of reorganization
plans of utility companies when
the financial position improved.
source
to
The
equity
enterprise should bend every ef¬
fort to preserve Jthe interest of
Parte Nd.
lowed
r
way trafficUnci earnings under
onset of the depression and
.
PACIFIC : N'WEST
transportation system. Such a sys-tem, so» long, as it-: is ^privately
p. Cdmmissioner Carroll Miller of
owned; obviously cannot be pro¬
the Interstate Commerce Commis¬
organization of the Chicago North
Western stated that they, "are
.
CALIFORNIA
:
VII
judgment.
view that this is here impossible,
for the law as it stands is inexor-
stock, with
an
required.
The ICC Commissioners in their report on the re¬
.
>
plans
the
Js
deeply sympathetic with the attempt, to. find some method by
which
the
present stockholders
might be lawfully afforded a continuing interest in this property.
We reluctantly express the
-
3:
the small stockholders if Congress
reorganization
fr legal impasse, and
.
Fifty-nine per cent re¬
maining can yet be salvaged for
senter
tions.
fixed-interest
tribution
77.
tion
sion
few
a;
-
The
&33MIBA CROUP CHAIRMEN
issuance, under such
in¬
creased capitalization, to the pres¬
ent equity holders of a subordin¬
ate class of no-par-value common
Sec¬
destructive
the
under
ozed
Their places have been taken by
3
and
Chicago North. Western, reorgan-
pressed: their faith in private enterptise by buying shares , have
been wiped out by the govern¬
ment .through unwise legislation.
3
Pacific
Western
the
in
as
:v;3
.
reorganization.
common
to relieve roads like the
:
'■
to
with the reorganiza¬
Thereafter, any additional
trustees
and
interested
groups ^profits over and above the divi¬
dends on the' common and de¬
work out a new plan to issue to
ferred participating common stock
the stockholders a Class B stock*
holders
merely observe with chagrin.
A
; similar rate awaits all the other
bankrupt
trying to
this plan- goes /through the
holders will receive a
"If
:
i from
$5 million.
am
.
;
are
freezing of depression condi-
build¬
(Hearings U. S. District
Court, South 'District; July 13,
1945; No.,78, 476, page 708.) .
- *
r
below 1932
should
avoid."
enrichment
in "
I
end
the
is
Prices of shares of insolvent roads
•
of
this
The
to the deben¬
come
holders for their
ture
That
;
:
event
appears
in
tire
ing will have; a permanent .value
for a long time of $15 million , , •
business.
,
the
that warrants should be issued
building
a term of years.
.3; . I
not hesitate to say that that
debenture
3
in
company
consolidations, it
me
■nri/iriter-f
that
in
over
Prices of shares
improvement
for
holders'that3
bonanza. It
-
3
C. Knox in the reorganiza*
the
J the
/
John
of the solvent roads rose to reflect
•
3
3
the
of
such
and'the receipts from the sales
thereof should be" used first to re-
,
improvement
tremendous
and, bf
.
injustice was cited in
opinion
by
Federal Judge
common
The
venture*
ViyiJ.ed in the price of defaulted bonds
:
A similar
an
the equity holders an opportunity to
secur-3 participate in the future earnings
relieff'?3';;'/ 3^3;
ity holders obtain
.
of
the junior
can
in the railrbad situation is reflect-.-- stockholders. \ "I should not, un¬
less I can help it, say to the stock¬
,V
•
attitudd
liberal
more
Commission
tioned
stock should be
no-parvalue common; subordinate to the
common
stock authorized herein,
buyers do. not
new
^
the
receive
a
with
Toronto,
Ont:? and Rouyn,
Que.
•ii
•«i
••I
•<i
2782
THE COMMERCIAL & FINANCIAL CHRONICLE
Thursday, Decemberr
1945
'J.
T
But
Raw Material
(Continued from page 2705)
traditionally
have
about
...
Americans
been indifferent to their interests
in
materials
raw
been
our
think
of
supply;
comfortable
the
U.
S.
unlimited material
materials
familiar
steel
was
It has
habit to
as
land
a
of
resources.
The
iron
and
like
had in abundance, and it
we
to
easy
assume
that
we were
similarly rich in all those things
needed by an economy that had
grown
as
looked
two
ours
vital
had.
We
facts,
over¬
abroad
because
they
that
one
many of our most essential
had of necessity to come
items
from
were
not
found here, and two that our own
supplies
of
possible re¬
authorities will
petroleum re¬
sources
may
well approach the
scarcity range within this lifetime.
;
We never had much high-grade
serves, but many
tell you that our
bauxite—the
familiar
aluminum—and
a
good
in
for
re¬
this
emergency. 1 In
instances our wood re¬
countless
sources
base
have used up
we
part of these limited
sources
have
been
wastefully
used,
and many
of our large
stands of timber are gone with
little or no reforestation plans to
provide replacements for another
generation.
V
-
might someday be used
X
could
give
many
more
ex¬
;v"|j
up.
•
petroleum, because of the
nature
amples, but this will be enough
As to the first, such critical raw to emphasize the point I want to
materials as tin and nickel do make, and that is that the U. S.
not exist in the U. S., at least in is passing, slowly but surely, from
a country of
usable quantities. No completely
plenty to a country
satisfactory substitutes have been of scarcity in the field of metals
found for either. We must look and minerals and other essential
to foreign sources for these as for supplies. It will be said of course
that
we
have
reserves
of low
many other less well known, but
grade materials that we could fall
vitally important, materials.
As to the second, it is painfully
clear that the abnormal demands
of two
back .on,
and to some extent we
could, but at much higher cost
and with great difficulties. ;
j
plus two decades of
..Our
technical
and
scientific
heavy civilian consumption have
taken an irreplaceable toll.
Our skills will, of course, find new
high grade iron ore deposits in the materials by the synthetic route;
Mesaba
range have
not many Some of these will take the place
years left.
The deposits in the nf items in short supply—rubber
U. S. from which high grade zinc is
a
good example. Some will
concentrates are produced are be¬ open up new fields of use—the
ing rapidly exhausted. Our good plastics illustrate this possibility
The
new
fibre
copper deposits will be a thing dramatically.
of history in another twenty-fiye glass might be representative of
years;
There is much argument both.
wars
this
power must go
Responsibility to
our
own
people at home, whose
living has, to so large a degree,
been integrated into a national
fabric
through
the
growth
of
Supplies and
unknown
with
responsibility.
Important
of
the development
as
these
new
synthetics is, they
hardly be expected to make
up for future possible domestic
shortages in many of those hulk,
can
low-cost materials such
business
,
units
and
urban
con*
centration. Responsibility to other
nations,
whose,
well-being
is
dependent upon
what we do. Our export and im*
iron
ore
have made such contributions to
port policies, our lending policies,
the development of our mass
our
control of ^immigration, and
pro¬
duction efficiency.
■
r:? just the state of our internal pros-f
perity—all these currents in our
Our Future Raw Materials
domestic picture may well grow
.n
Position ?,?'•'•; ???' to tidal waves as
they reach for¬
It
may
not be stressing the eign shores, Whether we like it
or
point too far to suggest that we
not, we have a responsibility
are
moving toward, an economic for cooperation with the rest of
position similar to that in which tpe world, that we dare not evade
V "
England has found herself, that or" avoid.
of having to
depend on imports ;: Now cooperation is a trait of the
from abroad in order to maintain
American people, and the cooper¬
her very lifeblood of existence;
ative approach in the solution of
It may hurt our
our
more
obvious
problems at
pride, but harden
our
decision, to ask ourselves if home, at least, should present no
and
zinc
as
copper
the remarkable combination of as-,
sets which enabled this country to
develop its fantastic strength,
both gone forever.
Some of these assets,
we
need
waste
basic difficulties.
tion-wide conflict
We
management is serious
in its effect on reconversion and
through carelessness,
them through indiffer-;
they need not /irievrtably be used up if we will it to
but
The
skill is
it
No
•
country
world has had
so
of
skills
individual
First
Cooperation
great American asset f of
for always if we wish
way;
high
in
in
the
Field
.ijCooperation in the
the
field
an average
this
as
seems
to me,
thing aboutproblems.
rS',;
Industrial Stocks and Bonds
Specialists in Power and Paper Securities
:.V
Standard Securities
3rd
69
Floor, C. P.
YONGE
Company ]:
R. Building
is,
more
outline
one."
of
Ross
international
The British Position
There
'■
.
two
big segments rif V
production
that
haye
played an outstanding part in her
history, coal and textiles.: They
have been of vital importance because they represented
large ex¬
are
.
port items and
provided
so
"
means
of payment for the things Britain
must,
import to. live..
time
a
when
British
British textiles had
most
every
That time is no
cost
was
coal
and
an
advantage ?
foreign- market.
in
The
There
.
longer,
<-■'[
of
mining coal and
producing. textiles h as..> been
steadily climbing until today their
coal
costs
than twice
more
it did before the
have had
tern
of
.war
ana
and
the
is
not
future
what
;
%
.
It is only just now that we
More
and
better
goods have
steadily been produced arid gen¬ perceive that our tri-partite sys¬
tem
.of balanced powers in gov¬
erally at lower and lower prices
in terms of real wages. Invention ernment does not lend itself too
and development have proceeded well" to international negotiation
without
material
interruption; ~and~" "freqCiently
leaves
foreign
The electrical industry, the auto¬ •governments and their nationals
mobile
in
industry, chemicals and
grave
uncertainty as to our
plastics—these and many others- position.
There is no time to
have increasingly contributed to
waste, ats I" see it, in finding opa
better standard of living, to-grating devices, at least, which
higher wages and shorter working. wiJL.tend jo facilitate such inter¬
national negotiations and allevi¬
hours.
Yes, the American people, with ate those dangerous uncertainties.
It is?om«iy mind to talk a little
their wealth of material resources,
their skills and their cooperative
abqqt this asset of the cooperative
approach, have pndeniably; cre¬ approach because it is closely re¬
ated the most powerful nation in lated to the other one of national
the world.
;>skills^ and to emphasize a very
increase.
I
will not
^
take
rea-
inadequate investment wv?machinery and this
sons;
modern'
more
in part because of what
unsound tax
an
to
seems
policy toward
amortization;
out-^/
put
ma¬
restriction of
resistance to new
and
chines and
methods by labor;
inadequate precognition
of- the
need 'for good management; too'
much
new
father
and
son
responsible positions: these
unhappy evidences of J
shortsightedness on the part of ?
government;, of management and ;
labor together; contributed
to A*.
steadily growing inefficiency 'in
the old-line industries jhat have
Britain does recognise
what has been happening'
and seems determined to find corrections. But these must take time
a continued heavy foil of iri-
and
dividual
sacrifice,
Lessons
from
?
\
,
British
-
y.y
Policy;
I do want to
are
Invited
of the
ger
in
the
high-light the danT
thing happening '
same
United
policies
of
States;
either
When
the
government
or
*
management or labor are such;
as
to
discourage these unique ?
skills of ours, to break down the
extraordinary cooperation which J
has
of
characterized
this
courage
the growth of
nation, and so io dis¬
efficient production, then?
democracy
our
itself
is
endan-:
gered.
As
I
said
a
moment
ago,
one
;
be annoyed at today's wide¬
spread^ disturbances between la¬
may
bor; and ^management without re-..
garding them as unlikely of normal readjustment; but one can-~
not disregard the slow but steady
growth in many production prac-- v
,
.
The
p>
^
L
Government, Municipal
I
MIT
??'''?:?•••?•;
"
;
E
D
w
HURON & ERIE BLDG.
DOMINION BANK BLDG.
LONDON, ONT. „
TORONTO, ONT.
'■Jr.
appeal
ADELAIDE 1385
METCALF 4500"'
-
higher wages is
natural;
within practicable limits it is de- U ?
sirable, but when it fails fo take
and
into. account the obligation for;, ?
greater hourly output and lower
cost,
the
seeds of
selfdestruction are being sown. Tabor
has
steadily
made
higher and
higher real earnings in the United in¬
states
because
contributed
it
has
generally
effort,
motre
skill, and so lower-cost output;
Management generally has been
willing to provide better and bet¬
ter equipment and facilities and
working conditions as its fon-:'
tribution to larger earnings and :r
lower-cost of production.
•?
more
,
habit
Specializing In
/
•
Affiliated
ain.
MEMBERS
with
E.
TORONTO
T.
?
LYNCH
STOCK
Dominion Bank Bldg., Toronto
&
CO.
EXCHANGE
Tel. Adelaide
We should then see
The consequences might not
prompt in making them¬
apparent with us, Because
the ability to compete abroad is
not so immediate
to the
so
selves
United
Lynch, MuMand & Company
LIMITED
thinking, and the result,
here what has happened in some
of those older industries in Brit-,
be
Trading in U. S. and. Canadian Funds
I
of
is inevitable.
NEWSPRINT SECURITIES
Burns Bros.tr Denton
,
for
understandable
Let either of them change that
'
,
'
tices that strike at the very heart'?,
of efficiency and cost reduction.'
•
oiquMesJool
IDIAND 5EGURITIE
STREET, TORONTO
;
that
today
final
Telephone Adelaide 9371
r
}
tie iri
.
???'•?•.,'.
244 BAY
-
and school
,
Canadian Securities
Limited
•
generally similar pat- V
a
fact
are
Simpson
Corporation Bonds
■
i
textiles
the time here to detail all the
me
;
woodsmanship, made theif very advice" Of President Washington
existence; through the era of na¬ on-entangling foreign alliances;
tional development of the late_Lpartly because so many Of our
1800's and of this century, envied foreign experiences have been un¬
by the whole world—the Ameri¬ happy, we-fail to distinguish be¬
can
people have shown an ex¬ tween those wisely entered into
traordinary aptitude and skill. ;
smljtliose of haphazard incident.
we
.Your
C.
■*
-
brought; England to a critically
unhappy state. J should .not leave p
this critical review without point-?
ing out the hope that lies in trie
course
?
Gordon
"•
.
,
difficult,
better
a
International
STREET, TORONTO
William D.
some- "
British. t".
say
.
by tem- SO clear. Partly that is so because
perameht that kind of a people; .we-Jaave. been so self-contained;
From the days of the first settlers,J we
have: made a - comfortable
whose
skill
in
handicraft and' fetish' froth the usually misquoted
of
Telephone—Adelaide 5441
Magnus T. Paulson
:
British
.
Railroad, Public Utility and
I shall
some i acute
arid-other
??:!<■;
ours
that
it
inexcusable, but I do not believe
it is symptomatic of any funda*
[mental. cleavage. /Some, way or
other I think this : problem will
be \yqrked out.
may.
dissipate
the contrary. •
The almost na-t
today between
labor and
are
them
ence,
more
however?- -at-s©m© -points,
lose.
never
and
more
perhaps high-grade
and
petroleum—that
—
danger
grave
States,
as
to Britain.
But
they would surely come in time.
A very considerable difference
of opinion exists in America with
regard to the plnr« of the United
States in world frodo: Many peoole who regard
T"osas well
informed
will
that
our
&
'
,
Volume
J.
>
'
«
4*
i
»
.
J.
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
162
prosperity - is not materially in¬
by the business we do
abroad, and particularly when the
problem of payment for these
goods has1 to be taken into ac¬
IBA Holds 34th Annual
fluenced
.
credits. must
or
Such
Many
many
follow;-A; > following
reasoning
is fallacious;'
areas of
our country and
industries depend heavily
,
for their very
existence, let alone
amount,
the
National
Chairmen to
year,.;.
serve
Committee
for the.coming
y■ a
yy v/ ,r:
Committee—Albert
trade
of- such
Kidder,
H., Gordon,
Peabody
Committee
*3 Education
—
&
J, "v;r
J ulien
Securities
Railroad
a
ft.
Dick,
Dick
New York.
Merle-Smith,
&
;
"
-
:
"
nelly, Glore, Forgan & Co.# Chi¬
cago.
1
State
Legislation — Robert G.
r
Mead,
Webster
&
Stone
Blodget, Inc., Chicago.
-Stock
Relations
Exchange
Richard
de
La
and
»
Chapelle,
—
Shields
& Co., New York.
/j • DA Dean McCormick, Kebbon-
McCormick & Co., Chicago, Chair¬
Collins & Co.; man of the
; 1944-45
Membership
'
■ ■ .•'!• yv.;yy;y;£;•'
Committee, reported a net gain of
ence between a prosperous coun¬
Federal Legislation—Walter A:
31 members. The Association now
try, with a steadily rising stand-/ Schmidt, Schmidt, Poole & Co.,
has 689 members, the highest in
ard of living and one where pros¬
Philadelphia.
1
the past five years, but still under
perity is marginal and uncertain
Federal ; Taxation—Richard t';F.
the all-time high of 702 reported
and the standard of living under
Dunn,
Aiichincloss,: Parker p'; &
in. 1937. i
pressure to save itself.
Redpathy Washington.
The;/Finance
Commitee pre¬
The goods we should be bring¬ yv'-;Finance—Irvin L. Porter,
The
sented an audited statement of
ing in to provide payments for First National Bank of Chicagdy
financial
operations
and financial
-oiir exports, have, of course;/ the Chicago.^: '•;> "f'j. ^ *'&;!!>Ly-;Condition, under the Chairman¬
Governmental Securities—Aub¬
same
or
greater effects in their
ship of Irvin L. Porter of the First
home countries.
rey G. Lanston,. The First Boston
|
National Bank of Chicago.
The
/Corp;, New York.y'y'y r'
Importance of Two-Way Trade
V Group Chairmen—Lee M. Lim- Committee reported that during
in total may be termed marginal;
it can well represent the differ¬
'
H.
Collins, Julien
Chicago.
vv
'?v3Vh/
•
It
only -k
be
can
timorous
_
scarcity
that
philosophy
not encourage every
and
effort to en¬
To
provide such an atmosphere;
nations must, of course,-and outs
ki
particular,- fight against un¬
necessary
restrictions on trade.
There must be a willingness to
lower tariffs, to
work against bi¬
lateral arrangements, to:
facilitate
good commercial loans and usable
credits, to free the operations of
shipping whereever that can pos¬
sibly be ; done—in other words,
really to want to buy from and
sell
to .the
nationals
of other
,
people
of
the
unhappily still have
The
countries.
United States
bert\BIyth
& Co.; Inc., New York.
Industrial Securities—R. McLean
does
large the flo\v of two-way trade:
long distance to go in this di¬
rection; but if they want the max¬
imum of employment and pros*
a
"TEXAS
MINNESOTA
Fairman
—
| Small Business—John F. Fen-
1945-46: ■'./-y
Conference
abrb^dv- Co., New York.
prosperity * on trade
any
While
IBA CROUP CHAIRMEN
Meeting
(Continued from first page)
&
Knicker-r
bocker,, McClung
A'
count.
They will point, to the bocker, Houston. V
small
relative 1 amount 1 of
such v..Western Pennsylvania Group:
trade,, and conclude that we could Milton G. Hulme, Glover & Macas well do without that, if, as they"
Gregor; Pittsburgh. 's■'
assume
to
be : likely,
increased; EF-.v Charles S. Garland, the newly
imports
and
defaulted
foreign- elected-/President, appointed the
loans
2783
Stewart, Harriman Ripley & Co.,
Inc., New York. •
::'y
:
Membership-^-James M.
Dain,
James M. Dain & Co., Minneapolis.
^Municipal ;• Securities ^Creorge
L. Martin, Martin, Burns &
bett, Inc., Chicago.' ' *
:
Cor-./
: :
Public Service Securities—Dun-
LirisleyLThe ^ First' Bpstoix
taii Hi
York.^"^f--':'^^^:^'r';/:;.m
Corp., New
the last fiscal year, which closed
on
Aug. 31, the Association's nor¬
operations showed surplus
mal:
figures of $26,300 compared with
a
surplus of $6,200 for the 1944
fiscal year and a deficit of $1,700
for the 1943 fiscal year. The sub¬
stantial
surplus
the: largest
was
of the past year
the Association
enjoyed since the 1930 fiscal
year when the surplus from oper¬
has
ations
$53,400.
was
,
\
G.
J. C. Bradford
J. C.
"The
Bonds
of
the
there is likely to and said:
pressure for some Union must be dissolved rather
than
admit
these
Westerners.
As
government action to make pro'-,
vision for" these
urgent foreign it will be the right of all, so it
Will be the duty of some to pre¬
needs;
- *
'
'' -
cphtirmed
'
One
may expect resistance to
imposition or maintenance Of
such controls by those who are
strongly
committed
to
getting
government out of the area of
control
at
the earliest possible
moment.
I
emphasize
this
as
the
members
of
Steiner, Rouse & Compahy, 25
Street, New York
City,
members
New York Stock Ex¬
Broad
New
the
Stock
at
40 Wall
Heller
firm
manager. The
maintains
a
branch
also
office in
change, announce that Francis J.
Ridgeway, Lieutenant Colonel, Fi¬
nance Department, A.U.S., has re¬
turned from duty with the armed
forces. He is how associated with
Street, with James M.
resident
as
With
Steiner, Rouse 8 Co.
,
Knoxville, Tennessee.
the
firm
as
manager
of
its
de¬
To Form Scheer& Company partment fot the development of
Scheer
business.
nfew
&
Company,
V
members
"•;
;
of the New York Stock Exchange,
will
by formed
offices^ at 25
as of Dec. 7 with
Street, New
Stamm to Admit Bickart
Broad
A.
City. Partners will be Her¬
N.
Bernard
Turtle.
recently
been
Mr.
Scheer
active
an
as
& Co. will
Stamm
L.
Bickart
Rene
Scheer, the Exchange
member, Robert S. Scheer, David
K. Perlman, Louis Chasin, and
to
admit
partnership
New York Stock Ex¬
of the
ber
has
change, is located at 120 Broad-
indi¬
vidual floor broker.
New York City.
,way,
,
'
hmicably if they Can, forcibly if
must." ;'v;
";y'\ : V- :■•/'''' ■'
in 1812, Congress admitted
they
a
But
Louisiana to the Union.
parity at home, they have enly
The extraordinary development
one
way to go.
They Will insist
of the
resources. of
these
new
that their government strengthen
its organization in the field of typical of the difficulty in deter¬ Western States and, the contribu¬
foreign
trade and international mining our attitude and a con* tion which they made toward a
economics, so that it can deal sistent policy in dealing with for¬ powerful nation are obvious. The
U
^
5
liiL significance lies in the fact that
firmly and promptly and intelli-1 eign needs.
:
with other .governments;
will; involve
determining
this
long-term policy,' and generally
adhering to it from one adminis¬
tration to another.
Most of the
the
foreign
have nothing what¬
realistically with
today
do
to
soever
in
issues
economic
field
Republican or Democratic
either
party practices. ''
,
y\. - j. ,• •:,•/
They are difficult of resolution
partly because we are not clear
in our own minds yet as to where
we
are
to stand with relation to
the
rest
of the world.
On the
•
is
question that iso¬
no longer the senti¬
ment of the
majority of our peo¬
hroad
general
lationism
ple, I am sure there is no doubt.
But when
it comes to spelling
that
out
specific
in
terms,
t
the
pinches.
In principle, for
example, we are deeply-sympa¬
thetic toward the suffering of the
shoe
liberated
but
when
peoples
of
the
is
There
gently
much
similarity,
I
think, between our/state of mind
selves
Regarding our relationships with
other countries, and more partic¬
powerful ^ When they became
part of the larger whole,
ularly those far away and whom
we
may not know well, and that
:
which
our
ancestors
extension of
aries
in
our own
had
in
the
state bound¬
the
early days of the
Josiah Quincy was
he
representative
from
Mas¬
sachusetts in
Congress in those
years, when the
settlers beyond
the western ridge of mountains
were
"demanding statehood and
seats in Congress. Quincy looked
at the possibility of these voters
in- long huts with alarm—saw a
danger in the votes these farmerwoodsmen wpuld bring to Wash¬
ington, ; With thundering voice
last
century.
-
he
rose
to his feet in the
Congress
To
the
extent
one
United
States
of
standard
of
a
more
Let
assess
of
citizen
the
assUme
responsibility
be
CANADIAN
Private
part
a
fail
fair
a
for
\> Metropolitan Building
repairing
for participating in the
task of assuring an orderly eco¬
nomic world, and we shall pay
Europe,
heavily for that lack of foresight.
God give the American people
Elgin 0161
MONTREAL
ple
abroad
lenge. '-/.—
A;.
\K '"/tv//
brawley, Cathers & Company
but we are
relatively
and
absolutely,
of these war-tOrn areas.
than
When
positive action by
actually setting
and making available such
there is rio
Government,
goods for foreign purchases, in¬
evitably
purchasing
difficulties
arise
that
are
understandable.
Most
individual
sellers
would
rather sell at home when there
is an assured market and none of
the complications that inevitably
attend on the handling of an ex¬
port order. Without a determined
policy, therefore, on the part of
aside
a
Bond Dealers
,
'1,'i
Members of The Investment
>
Dealers
Association of Canada
/
.
/
will lack the barest
ha vent
cloth we would like,
enormously better off,
commerce
Limited
Gairdner and Company
yards of cotton tex¬
and millions of peo¬
all the cotton
aside
NEW YORK
"'-ry
rudiments of covering; we
any
■
LONDON
HAMILTON
OTTAWA
:
:
TORONTO
-
judgment, imagination, and cour¬
age to measure Jup to that chal¬
world,
surplus,
objections begin to
themselves.
There will
be a world shortage of perhaps
billion
Neiv York and Montreal
to
a
two
to
don't have
manifest
tiles in 1946,
SECURITIES
Wire Connections
share
it is- proposed to share
materials of which we
f
in¬
the
is
States
United
in all
world.
prosperous
and
"will
for
it
as
a
better
in
and
with
living,
possibilities
greater
dividual
and
industry
part of its
to
set
production for
320
Z
CANADIAN //'/'/.Z--
:
GOVERNMENT
-
MUNICIPAL
"A/Jr''/:"/:
-
^
■
Bay Street
360 St.
:
Toronto
Montreal
'4
James St. West
ELgin 2301
MArquette 4194
CORPORATION
BONDS
<
■//
Gairdner, Son & Company
Stock Brokers
Members
CANADIAN' BANK
OF
COMMERCE
■
hope
may
in y resources,
richer
•••.••;;
DEALERS
ACTIVE
became
an
that
1IMITED
England States them¬
richer and more
New
the
McLeod,Young,Weir & Company
,'CvV*
The
BUILDING
Toronto
Montreal
The
of
Stock
Stock
Exchange
Exchange
TORONTO
320
Bay Street
;
360 St. James St. West
'
:
I' v
'■■■:
.
,
on
Jan. 1. The firm, which is a mem¬
for a separation;
definitely
pare
/
Exchange, announce
the opening of a New York office
York
needs,
export
F. J. Ridgeway
Bradford & Co., Nashville,
Tennessee,
York
W. E. Knickerbocker
Opens
New York Office
man
be
Caldwell
James
Toronto
Montreal
.
.
ELgin 2301
"
MArquette 4194
•
.
THE COMMERCIAL & FINANCIAL
2784
Government's Role in Full Production
economic
the
on
(Continued from page 2700)
productive machine to do the best
business
possibly do for the com¬
We want prosperity,
in other words.4 a sustained, solid
department's
job it
and
centered
statistical
program,
the .Bureau of the
in
enthu¬
siastic response from virtually all
segments of business and indus¬
try. It is planned to supplement
met with
has
Census,
prosperity that is not subject to
shattering ups and downs but that
'stays at the highest possible level
over the longest possible periods
of time. Call it by any name you
like —full employment, full pro¬
Thursday, December/6, 1943
IBA
+-K"*'
CROUP CHAIRMEN
SOUTHERN
production solely by a
MISSISSIPPI
VY.
of expanding our foreign
We shall remain primarily
process
The recent announcement of the
can
good.
mon
situation
outlook.
attain full
•
•
CHRONICLE
an
trade.
dependent
on
ket.
.<•
.
y.
the
domestic
mar-
;:
Obviously, the
•
•
isn't sim¬
ply one of raising wages, then
raising costs, then raising prices,
and going on into a vicious spiral
answer
program
with a of inflation. What we do need is
strengthened
analytical a genuine increase in mass pur¬
duction, or plain, ordinary "good program in the Bureau of For¬ chasing power. We are up against
eign
and
Domestic ! Commerce, nothing less than the necessity for
business conditions'—we do have
Considerable
progress
has been raising the American standard of
universal agreement that that is
made
in
recent
living—well above prewar levels
years in the keep¬
what we want.
ing
of
the
national
accounts—in
•yqnd that means making more
The only question is: how do
the department's analysis of the goods and selling more of them to
we go about getting it?
more people than
gross national product and nation¬
ever before.
To begin with, we maj[ as well
al income. These data, which the
:
Public
services
performed by
agree that Government can't get it
department has an obligation and Government will be on a broader
for us.
We can't spend our way
responsibility; tor make available, scale than in the prewar period,
into good business conditions just
have been t widely recognized as
but that in itself will not bring
by dipping freely into the Federal useful
management tools by busi¬ the kind of increase in the stand¬
treasury. We can't legislate full ness and
industry.
.....
ard of living that is possible. The
employment and full production
The development of 4he outlook job is one which must be done
into existence. At the very most,
primarily by industry and labor.
Government can do no more than service in the Department of Ag¬
riculture
has
contributed mate¬ Satisfactory profits for stable en¬
make
it
possible for our free
rially to the increased efficiency terprises and higher rewards for
economy to operate at full speed.
of
American
farm
production. venture capital in new undertak¬
What
Government does in that
Without
question
the
develop¬ ings are essential. At the same
ffeld can be extremely important,
ment
of
a
parallel service for time real purchasing power in the
and I doubt that we can get a
hands of consumers of all classes
business would provide manage¬
sustained level of prosperity un¬
must be adequate to sustain the
ment with a better factual basis
less
Government
does
its
part
for conducting business activities. new rate of production. This can
wisely and efficiently. But in the
come
about
It is; of course, important to em¬
through ' increased
last analysis a free competitive
phasize that" forecasts of future money earnings, lower prices or
economy has to be what its name
business
quality
of
product.
activity are based on, improved
implies—an
economy
that
de¬
business and industrial averages Probably all three factors should
pends for its dynamic power on
and always involve assumptions be present in some degree, but'
the free play of market forces to
which may or may not come to with varying emphasis in particu¬
effect the best utilization of the
pass.
For these reasons there are lar industries according to cir¬
nation's resources. It must be an
V
definite
limitations
in
applying cumstances.
economy
that is determined to
business .'outlook
A
projections
to
high
levelof,
con sumer
realize its own potentialities to
individual companies or even to
spending would mean that indus¬
the utmost, and it must firid with¬
&fic industries. The averages try
could
operate
on
a
in itself the leadership that wilf
high
which serve as a basis for fore¬
break-even point. I would like to
carry it oh to ever higher levels
casts do not apply to all individ¬
suggest that in the past the break¬
of production.
statistical
the
greatly
!
.
.
1
.
,
When
ahead toward
are
we
a
moving
higher and more
kind
permanent
than
about
talk
we
have
ever
about
talking
prosperity
of
had before, we
program
a
in
ual
question
made
is up to
It
Government to encourage
initiative
that
risks.
those risks*
and
to
cushion
Federal
Nevertheless, I believe that
living for all.
Toward the
that
it
will
'; V
objective, the
Department of
same
the
of
of the
general welfare is designed
provide all possible help for
business.
It is the department's
to
job to promote business: to
that
services
for
business
in
for
work
pro¬
business
can't
itself, to speak for
Government, and to
climate
of
public
tobusiness ex¬
a
policy favorable
pansion.
The
department's 1 ef¬
forts have been and will continue
to
devoted
be
to advancing all
competitive
business
legitimate
;
interests.
•-
It
with
is
'
,
these
general goals
plan has been de¬
veloped for strengthening the pro¬
gram of the department.
Under
this
plan, the department will
undertake to provide:
in mind that
a
1—Revitalized
foreign
promotion services.
trade
logical
aids,
techno¬
aids, marketing aids, and
forms
business*
of direct
service
for
*
bureaus
and
of
the
offices
tech¬
of
the
department.
4—A
strong, balanced program
of current and
tistics
and
program
the
me
a
to
Government
situation
business
current
including
will
serve
the
possible
best
valuable
as
beacons
"benchmark"
sta¬
of
success
program
depend
will
on
the
in
department's
large
measure
the amount of coopera¬
tion^ .guidance and assistance the
department receives from business
in making available facts on cur¬
rent events and informed judg¬
ments
These
of
future trends.
on
and
the
which-
the
other
Let's
get
program
are
at
de¬
clear
a
of the
We want
picture
problem that faces us.
sustained high level of invest¬
ment, of production, of employ¬
a
ment, of profits.
We
think, that if
get that we are
a result of action
we
are
agreed, I
going to get it as
by
industry, with
Government
helping where Government help
is necessary. But precisely how is
it going to be possible for us to
get it?
.■ ;
^
'
We
begin with, that
physical obstacle
to prevent us from reaching our
goal. American industry proved
during the war that it can reach
just about any volume of produc¬
tion that is required. What we are
up against now is a problem of
there
know,
isn't
to
any
financing this production by
sumer
con¬
purchases instead of Gov¬
ernment
deficits.
What
markets
we
need, in order to keep our
industrial machine working com¬
fortably close to capacity? Where
are
we
going to find those
mar¬
*
Our foreign trade is
going to be
important, of course.
We have
got to do our part to help the rest
of the world get back on its
feet,
and after that has been done we
complete analytical
can
and
market
current, infoimation
abioad.
had to be low if industry had
nothing better to look forward to
than, on an average, an operation
at
two-thirds
of
capacity,
or
thereabouts.
Obviously, business,
has to operate at a profit; the sen¬
sible businessman has to charge
enough in good years to tide him
over
the bad years.
If business
and industry are doomed to op¬
erate
two-thirds
at
of
capacity,
business¬
in and year out,
inevitably must set prices so
they can make money at
two-thirds of capacity operations.
But if we succeed in reaching a
higher operating level, and if the
wide swings of the business cycle
year
men
that
be minimized, the low break¬
can
All
elements
described
been
It
point is
even
department's
have
point has often been too low.
even
way
of
longer essential.
no
which
is
simply another
of saying that the salvation
of American
American
industry-—and of the
and
economy
free
our
signed to help business meet the enterprise system itself—lies in a
challenge of the postwar world.'/ process which is perfectly familiar
give
business
in
the channels of economic^ activity.
The
kets?
3—Strengthening
nical
of
do
2—Management
other
that analytical
materials of this type, descriptive
with
greater length elsewhere
Commerce within the framework
provide
will agree
you
and
and not hinder the private
enterprise system in operating at
a high level of production to bring
about adequate employment op¬
portunities and a better standard
vide
as they may
particular business.
a
judgment of the business outlook,
upon
Government
program
ir^the forecasts
apply to
based
assist
of
man¬
The Administration's
that as¬
sumption.
It wants to make it
possible for business to do those
things which only business can do.
The
proposed full employment
legislation
is
fundamentally
a
declaration of policy and an as¬
sumption of responsibility by the
is
program
Moreover,'
is always entitled to
general assumptions
agement;
which business must take the in¬
itiative and bear certain
companies..
have
an
for
But
exceptionally
goods
we
are
large
and
services
not
going to
all
to
of
you;
technological
im¬
provement, greater productivity,
expanded
production,
expanded
consumption and increased profits
I
sincerely believe—and
be¬
my
chasing
the
over,
few
look, forward to
can
years
peacetime
of
*
unprecedented
prosperity.
It
seems
clear to me, also, and I believe it
is to you, that expanded produc¬
tion
requires expanded demand to
sustain
it, and, that the worker's
purchasing
power
looms
very
large in that expanded demand.
In
addition,
creased
I
believe
that
in¬
output
sential
to
per worker is es¬
steady rise in real
this connection there
a
In
wages.
should perhaps be further effort
between management and labor to
reach agreement
compensating in¬
productivity in such a
manner as to assure both
for
incentive
rpaintenance
power.
adequate
investment
of
and
purchasing
mass
V'
;;y v
Both
inflationary
and
defla¬
tionary forces are at work in our
economy. On the inflationary side
there are huge backlogs of de¬
ferred demand
for
durable goods
—amounting, in some cases, to
several years' normal production.
Back of these demands
are
wartime savings.
pressure
these demands
is
being
felt
The
and
in
these
markets
swollen
of
savings
where
production is still restricted.
But in the very nature of things
I
this
inflationary force is not apt
to be very lasting.
Production is
going to expand greatly in the
next two years.
The back-log of
wartime demand will taper off as
supplies
again1 become
abundant.
If we hold the line on prices dur¬
ing the immediate future, this in¬
flationary pressure should soon
be dissipated.
The
deflationary forces threaten
a
good deal longer.
The
unemployment that will probably
to
last
next spring will not easily
wiped out, even if we do get
appear
be
on high volume rather than
prices.
We must find the
golden mean in distribution which
a,level of over-all production that
by
will
in
adequate
return
to
capital, to provide both the incen¬
and means for profitable in¬
vestment,
while
simultaneously
providing consumers with mass
purchasing power to absorb high
levels of production:
vv
■■■;
>
/
American
industry
has
out¬
stripped the rest of the world by
far
in
its
production.
American
industry's war record
speaks for itself on this score. But
genius for production, by itself,
is not
genius
for
enough. Genius for produc¬
tion must be coupled
derstanding
of
the
with an un¬
principles of
distribution which will enable the
productive machine to keep pro¬
ducing.
This
is
nothing
new
to
American industry or to this As¬
sociation. What is needed is wider
acceptance and wider application
of this
principle, which our mass
production industries recognized
long
ago
in
paving the roads
towards high volume production,
lower prices and mass markets.
In this way and only in this way,
the
pos-
sibility of sustained prosperity.
prewar
high.
very
war
the
standards would seem
The drastic cutbacks
production
income
of
are
wage
reducing
salary
and
Furthermore, farm prices
are very sensitive to
any drop in
consumer
purchasing power.
As
long as the economy operates at
a
level substantially below full
employment, greatly reduced farm
income is in prospect.
What we
must face, therefore, is the fact
earners.
that the collective incomes of both
farmers
and
wage
and
salary
going to be substan-r
tially smaller in the next few
years than they have been dur¬
ing the war. But these two groups
make up the bulk of our consum¬
ing population. With such a cut
in buying power, no industry can
expect its position to be long
maintained. Over the long run, in
earners
other
tion
are
words, the danger of defla¬
to dominate the pic¬
seems
ture.
in
power
long-run
problem
lies
the
hands
the
of
*
.
solution
in
to>
©repur¬
to
;
our
direction
of
seeking profits through mass pro¬
duction and mass consumption. In
that
way
achieve
creased
shall
we
basic
our
sales
be
able
to
objective of in¬
and
sustained
ployment. .Enormous
em¬
stakes
are
involved in the widespread recog¬
nition and successful working out
of:this
that
principle.
It
is
doubtful
form of economic organ¬
our
ization
such repeated
survive
can
shocks of depression as we
perienced in the 1930's. y,
ex¬
.
.
The key to the problem of sus¬
tained
highTevels of production,
employment, and sales may well
be the key to the preservation of
free enterprise system and our
our
economic liberties
as
we
know;
them? Our free enterprise system
which
has
produced * a
higher
Standard
of
living for the Amer-,
ican people than any ever achieved
t
by any people through any other
?
system
must
be
preserved. I am'
be preserved.!
require the coopera¬
convinced that it
But
will
it
can
tion of all elements of
and
omy
a
manship
labor
We
on
and
our
Government
cannot
American
econ-*
high order of states- i
the part of business,;
afford
/leaders.:
sell
to
system* of
free
the
enter¬
prise short with short-sighted pol¬
icies and actions
run
based
considerations.
will
with
agree
I
price.
a
that
me
ceivable immediate
such
on
short-
believe you
no
con¬
gain is worth:
/'-hw
::
■
Moving ahead vigorously now
may involve some risks; it can
also bring very great gains. There
are
outstanding
historical
ex¬
amples in American industry of
courage
and vision by manage-'
ment in
risking capital for the:
sake
of
mass
production econ¬
omies foreseeable only in the fu¬
ture.
Capital today is in a good
position to take such risks. Labor;
is in a good position to supply the
cooperation that is vital for the4
expanded
industrial
production*
which
is
essential
to
a
higher
standard of
as
whole
a
living. And the nation
will expect nothing'<■
less of all of
our
level
us
best
than
that
follow
to
we
and
do*
to
the traditional American
pattern. We cannot afford to fritter away our national assets and
undermine
our
free
enterprise
preserve
-,
system by shortsighted and selfishconduct
on
the
part
We
have
ele- ?"
of any
ment of our economy.
"
iCr*1
full
production
and full employment on a sus-!,
tained basis.
You gentlemen, as
the managers of our outstanding
industrial enterprises, must lead
the way. Government can help to
provide a favorable climate and
can protect the economy against a
can
disastrous
decline.
The
real task
is in your
President Truman's
policy rep¬
simplest, most direct
way of dealing with these con¬
flicting forces. In effect, it says:
The way to prevent inflation is
to hold the line on prices. And the
resents
volume
.
incentive
an
on
wage method of
creased
the
consuming public.
The
;
deflation' is
prevent
maintain
a
based
tive
to
way
business, once the current flurries
are
high
assure
»
lief is supported by the best avail¬
able ■» statistical
analysis — that
,
the
hands. The initiative is
yours.
And yours, also, in be¬
ginning the second 50 years of
your
Congress of Industry, is the
greatest
nessmen
opportunity
have
ever
any
faced.
busi
¬
m
Volume
"
THE COMMERCIAL &
Number 4444
162
FINANCIAL CHRONICLE
■•
Full Production Means Full
(Continued from first page)
(Continued from page 2709)
is
hard
a
thankless
task
and
4
one.
We feel
perhaps
have
collectivism with "hand-me-down"
a
we
never
a
sound
We
*
Act
better
to
public policy.
feel
:
,
:common- gpo#.;^ j,'
1
>
:
7/777/7 •" v ••'
7
been
that
industry, and U the
;;
v
£5
mistrust
of each
things
many
so."
are not
of irration-.
waves
functicism have
swept
periods of his¬
witch-burn¬
of
craze
mania whether -it
or
be
miniature golf or Ku Klux Klanism. : Wishful thinking dominates
moving
and
power
add
to
the
it
of - sentiment
and
human
psychology Will invent ja
justifying theory for behavior
however irrational.
/ // •/'":•
'.d
.
The
other^
who
end;.to chaos
punitive and de¬
wishful
thinking of those
honest advocates of pub¬
are
lic
an
ownership has invented the¬
and doubt; and
ories that justify tax exemption,
fensive acts, or need for punitive or tax
evasion; that justify almost
or defensive action.
//>'/■/, 7.7 any device or expediency. The
Rochefoucauld ; says, "Hypoc¬ credulity of the unsuspecting and
risy is homage that falsehood pays sincere
advocate
of
collective
j
to
truth."
the
truth
.We
have
we
for
hypocrisy/
,
Committee; wants
and
either
come
.
Our
ownership
wel-
no
falsehood
.
look
either fantastic
with. favor
theories
Or
on
ruth¬
in widespread areas
national economy—tax exseen
Street.
emption tipping the scales against
private enterprise in favor of pub¬
lic
collective
or
I
believe
that
communism
,
ownership.
can
black leg and the puritan are wed,
wishful thinking invents a
theory to justify it.
or
the
some
its ciaim to equality in the shar¬
money
ing of the benefits of production
a myth.
* '
< •
Economics are made/'of facts,
,
L;/■
w
V
■
'■tip/', -/Z-/; //'
vs.
If
we
amine
realists and both
are
our
own
national
and
ence
wool
for
and
a
laid
down
his
fresh shorn lamb.
^
Collective
■;^7'Ownership77J /,7.7Z'
,
(
The
wily
opportunist
ever
searching for the easy plum to
pick has found a new crop for his
harvesting.
,, '/■
7^..£{.,>•
.
Private Operation
"■•// ■>//;
Omaha and in Puget Sound
buyer went to market to buy
strength of its propaganda. I know
not fancies.
-
In
stand only on the
is
/
7
.
;
year
tional Association of Manufactur¬
I
however, that little
would be served here by
undertaking to review even the
major developments of these 12
ers.
am sure,
purpose
Nor would it be fruitful
months.
to
predicting
try
which
we
come.
■
the
problems
will face in the year to
7'
Employment—Plus
history
the
of
But
but
reach
cannot
we
this
ob¬
be
it
takes
than
more
economic
and
time
to
social
prob¬
It takes
accumulated;
willingness of those with savings
put their funds to active use;
to
and,
,
there will be
a tax system which
possible for savings to
it
Second, we must have Govern¬
ment policies, on taxes and other¬
wise, which do -not destroy th(?
lems. It takes foresight.
wise, positive action.
First, we must take whatever
steps are necessary to assure that
Third,
policy
adequate flow of
private
capital into * productive
job-making
activities.
Without
such a flow of capital, there can¬
not be that growth of productive
resources
necessary
to provide
jobs for our growing population;
Without such a flow of capital,
an
we
income
of
have
must
which
taking
wages
does
not
business
a
Correctives
•
In
that
supply
cent
return
to
their funds.
is
It
who
of
No other system, by comparative
factual analysis, can enter even
sions
are
competition with the
system. Those conclu¬
the/inevitables based
/ only on the facts and figures—on
the
.
mathematics
of
economics
apart from the added weight of
value in the individuals' personal
.
.
; liberty.
private
well.-
.
It
The American system of
enterprise
has
worked
■„never
should
be
aban-
/
doned."
I.
Collective ownership is growing
in America in almost every phase
system permit the
the return of peace.
; y
channels..
This, is
to
spective/ to
realize
that
these
many problems stem from the one
especially true
been try¬
ing to1'do/our. over-all thinking
and planning for us..-Too many,
of .these do-gooders ■ assume that
if the
policies they recommend
seem
to be economically sound,
there is no reason why investors
dominant
problem of our day and
age—the
problem ' of
creating
lasting prosperity in these United
should
be devised to eliminate the double
States.
leave
will
We
have
to
7
tackle
all
of
these
with •' courage 7 and
with
vision. But Cour most important
responsibility
them
stand
will
in
be
their
to
under¬
proper
per¬
:
'
The
depression-spawned fear of
insecurity is our real
enemy.
Cure it, Zand the public
economic
will
be
cold
as
ments of the
Medical
the
blandish¬
panacea-peddlers
convention
a
to
of
the
Association
as
American
would
be
to
among those who have
individual endeavor. Taxes
capital gains discourage pro¬
duction
and
job - making
an4
on
should
not be
And
when
their
on
a
as¬
sit-down
that
property
rights." j /
strike," or charge
trying to "sabotage
social policies"
investors
are
"putting
rights
above
human
'
/'
•7; 7
Essentials for
7-
'
•;
-
Investment Flow
How
can
make
we
frontal
a
attack mpon
this problem of last¬
ing prosperity—not prosperity for
a
few,
or
n^osner1'^7 for
or
one
section
the
at
?rou^
one
expense
of
others, but full and lasting pros¬
perity for the nation as a whole?
.■
Production Is Panacea
•7 You know the answer to that
question. You know that it is to
be found in just one word—PRO¬
With
have full
full
production
prosperity, which
totalitarian
a
And
economy,
fair method
a
and
business
is
it
courage
the incentives of labor.
is
as
importance of assuring an
adequate flow of private capital
into job-making activities simply
cannot be over-exaggerated. Elim¬
inate that flow-—as we have pretty
well done during the last 15 yeara^
•—and
economic
our
system
and
ultimately
must
matter
no
what
is
political
collapse,
done
our economy. Tax exemption
for collective ownership is an il-
1
equtijes and .unjust burdens on all
; of us who are not the direct bene¬
ficiaries
of
the
specific -project.
In -the. field ;of public ownership
/ of utiltiies -the people- are vicI timized by devices for; financial
manipulation and are persuaded
by dishonest accounting. ~ •
7
:
a
unwary."
'
million "snares for the
He is not awake to the
are
somnambulist,
sleep walking now but soon to be
rudely awakened by the hurt of
attuned
these hazards.
cautious
'coming- and
cious
•
is
a
He is whip-sawed
going in- these expansions of collectivism, but he
; does not know it yet.
V
Many people join the march of
.
,
interest.
He
realities.
We
focused
esses
to
trust
on
which
We
to
trust
,
our
eyes
truth, our minds
justice, and our proc¬
considerate
and
care:.
that
to
We know that
and
stop - just
of us get
all
down to work.
We have the
na¬
tural
We have the
raw
resources.
problem of investment may be as
simple as that. But it certainly
isn't that simple in this country.
acts
restrained
We
feel
will
by
that
.
.
that what is finally
done
in
the
end
results
can
we
Special Privileges
which I think we must follow, if
what
if we are to reach our goal of full
investor."'
production and full employment
We haven't even a group of in¬
PLUS; is in connection with spe¬
vestors who act as a unit.
But
cial privileges. Now I know that,
we
do have tens of millions of
there is room for argument on
investors/ each of whom makes
just what is, or is not, a special
up his own mind whether he will
privilege. I realize how easy it
risk his funds in productive en-,
is for each one of us to think that
We
have
may
be
never
called
had
here
"THE
terprise. If we are to have ade¬
private; investment, there¬
fore, we must:
quate
what is done for
me is good sound
(Continued on page 2787)
\
77777; THE 717:77::;.
SYSTEM
COLUMBIA
.77//:
Serves
in
a
1,600 communities
territory where
7. *"•** 77•'.•
■»!
.
<:
more
be
judi¬
the
'
>
7
-
people live
7; and-work. 77i:«a/:7777/7^7.;
have
vorably inclined.
On
the
Hold¬
ment
and
an
improve¬
implementation
to
the full extent, but only to the ex¬
re¬
by the
than 5,000,000
unreserved i approval of our
critics as well as those more fa¬
ing Company Act we contemplate
no sweeping change, no wide nor
radical departure, but we do con¬
tent that deliberate care,
research',
.
caution
clearly dictate.
and
studious,
wisdom
any
The second broad line of action
the
template^ constructive
and fair.
our
sults of our study, will justify the
arduous labors of our task and
,
scale
the scale is correctly balanced to
register cthe full weight of public
The American taxpayer is beset with
a
weigh public burdens.
.
1
it
will
now
Committee
*
::
for
we
speaking again of the ^materials, the labor forc^, the
committee's work, I might say,— productive capacity and the man¬
agerial know-how;7 We have all
and
so
it: is: that v these special
that it takes to give Americans a
cases
/involving
questionable
prosperity and security without
transactions "have been
brought
also into the
fqrum of our delib¬
Committee will be done well, as it
erations.
"
....
- ;
We .have in the forum, of our will be done faithfully. We hope
And
lusory concession creating real in-
t
hoping
if
in
direction.
the
puffing
attainable
should
maker,
other
..
In
ment.
The
Government's
and
or\
to be the jobeconomically—ii
not politically—important to stim¬
ulate its incentives as it is to en¬
that capital is
the
the
If
sumptions are
questioned; they
say that it is proof that "capital
is
Taxes
business should be se j
point of discourage¬
below
taxation of corporate income.
enough leeway to make a
profit which appears adequate to
them, then investors also should
satisfied.
eliminated.
be
corporate
willing to go right
ahead risking their savings. They
assume, too, that if their policies
be
level which will not discour¬
a
age
.
of
5
accu-.
,
we can
long enough and a sword sharp
enough to cut down such cripie
where; e'er- it raises 7 its serpent
head.
<
/
' ~
* -
/•;
/>
,
*
'•
goods
.
tern of private enterprise and in-
American
risk;
-7
important, therefore, thali
tax
our
those
'
-
means, not only full employment
but full employment PLUS—full
again and this
employment PLUS better wages
time he has a new disguise that I
based upon production; full em¬
have, I think, properly labeled—
ployment PLUS an ever increas¬
"Swindle Incorporated."
/
ing standard of living based on
Believing that Government is
a greater output of goods at more
under oath
to
serve
the 'public
and more attractive selling prices;
interest, I hold that we cannot osfull employment PLUS economic,
trich-ize our vision against a see¬
social and cultural progress; and,
ing eye knowledge of such per¬
above all, full employment PLUS
formance.
If the Holding Com¬
the preservation of that freedom
pany Act can be implemented to
of choice, both economic and po¬
bar such doors, then it should be
litical, which has been, and must
so.
The Federal Power Commis¬
continue to be, the fundamental
sion, Securities Exchange Com¬
right of every American citizen.
mission, and Internal Revenue,
Full production with full em¬
should be marshalled to combat
ployment PLUS is an attainable
that wrong. And these agencies of
It is
Government should have an arm objective for this nation.
ing
dividual opportunity is the world's
best system of national economy.
thor realm of
there
nothing left to maintain ad.e-9
quate reserves and to give a de¬
The wolf of Wall Street is huff¬
ex¬
experi¬
the ex-
,
.
in
essential to 1 a mulation of savings to be invested
v y.a ."•/ ;'Problems Ahead
; / 7 j.tj
rising standard of living for our profitably in productive enter¬
/
There will be- many problems.
people/ - 7'■ '/■■./ *"7^L1 ■;/z-;;7/•. prise which will supply jobs audi
There will be problems of produc¬
7; /Unfortunately, there is much more jobs. Our present; tax sys¬
tion and of wages and of prices;
misunderstanding in this country, tem needs, an intelligent over¬
there Will be problems of taxes,; as to what is involved in the
prob¬ hauling to accomplish that pur¬
oft strikes, of crippling Govern¬ lem of assuring an adequate flow pose.
" / /
;
mental controls, continued despite; of
The income tax should be helc^
private capital into productive
DUCTION.
Holding
Company Act
.
go abroad for
/ perience of others, we can only be
< convinced that the American sys;
labop
a
result
much of the gros$
so
is
cannot turn out the increased
we
First, have
,
makes
jective by drifting 01* idle prom¬
ises. Time may heal all wounds,
solve
:
The
and
;
collectivism
possible.
the
world.
So,
shall
yv/./r ;;■;// 7/7L/-L7.'' L/r 7/
the spiel of an itinerant snake-oil
:. On
this stage absurb perform¬
doctor.
Ignore it, and we feed a
ances
occur.
The
unsuspecting
public is made stooge to the finan¬ public psychosis which is an open
invitation
for
demogogic attack
cial prestidigitator. The lamb of
upon every feature of our com¬
the rural district lies down to bed
petitive enterprise system.
with the wolf of Wall
opinion that competition should
be equalized between public and
private enterprise.
our
I
that it has been my
honor to be your president has
been a notable one for the world*
for our country and for the Na¬
is
lator.
a personal view, it is my personal
of
utilities
vantage but also by the shrewd
promoter and the wizard manipu¬
practices.
7/
'\v ;
'
If 1 may divert at this
point to
I have
public
ticement to prompt the petty ad¬
less
„
of
played upon
not
only by the
demagogue who covers up great
and long range benefit with en¬
or
;:■!;" t/y/y- ?-■:.'
cannot
life,
my
in
-
behavior
mass
-
I decry the feeling - that the Se¬
curities
Exchange
Commission
and industry have in common a
Let,there be
find
cousinship with arty sweeping fad
or
-Ne Ground for Distrust of SEC;
mutual
will
ing, the madness of Naziism, the
fallacy of communism, all have^a
j ,i
-ij
of
tory.- The mania
Government's
v/y;r/.
people
the world in many
■
agencies.
simply
alism and
between
as
and' the
cock-sure
Psychological
We feel that sound law and good
administration should build faith
and trust in each other
The
with Jerome Frank that "We have
the
right to
expect
a
spirit of 'cooperation
from the industry that will bring
to us the facts in, their simple
realities, clearly delineating between any advocacy of self inter¬
est and. recommendations for the
;
ship and operation of enterprises
private ownership and opera¬
tion of enterprises will bring out
tested
of
rest
has
with sincere gratitude to you who
made it
the facts and test truly the values.
Then the claims will, be fairly
>
have
we
the
for
tween public or collective owner¬
and
serve
the past year
given me a rich experience.
hand,
look back upon this crowded year
false.
or
Equalization of competition be¬
constructive recommendations for
the
true
are
implementing, clarifying, and im¬
proving
ready made preconceptions and
stop to check whether they
or
'
right to expect a spirit of cooperation from
the Securities Exchange Commis¬
sion that will bring to us unbi¬
ased, impartial, and judicial anal¬
ysis of suggestions offered and
*
other
parallel
2785
COLUMBIA GAS & ELECTRIC
CORPORATION
COMMERCIAL &
♦THE
2786
Prospective Cost of Government in
to be
United States During 1947-1951
during the
extravagance - over¬
this
of
classical examples of
none of which sur¬
happily their lesser degree
reaches the
history,
all
vived
of misfortune.'
against this general weak¬
spend that the appraisal
of the ensuing five years of gov¬
ernmental
costs
in the United
States must be made.
Trying to
avoid bias and simply judging
to
1945870
candidly, one can weigh the posi¬
tion of government, the duties and
compulsions with which it is pres¬
ently saddled, the common ex¬
pectancies (nowhere disavowed)
with which it is confronted, the
general trends which it has dis¬
played, and a conclusion can be
reached as to where it moves in
the realms of cost.
For it is the
1945
1,600,000
1,500,000
1,400,000
earthly power.
be
■
a
The
the
19423
of
matters
imperialism,
military cost, having been
bulk of recent gov¬
greatest
usually
must
act
to
keep
tend to become more imperialistic
rather than abandon this role un¬
In
1935
the Army
with
per¬
a
great power of the United States
is* triumphant today over all of
With the rise- in wages,,
garded
on
of
master
of
standards
additional
td being quartered in foreign sta¬
tions, the man-cost per year of
the Army during 1947-1951 will
living, and
expenses
In 1935 the Navy had an active
personnel of 93,000 men costing
$436 millions and in 1936 had a
of 103,000 men
$529 millions,
costing
unit cost of $4,-
or a
700 and
$5,100, respectively. The
year cost during 1947-1951
be expected to reach nearly
man
may
$7,000.
tablishment
will
the
of
United
with., the
decline
not
States
same
speed and degree after this war.
It will remain to police both Ger¬
Japan,
and
many
it
will
retain
distant bases In the Atlantic
Pacific and
and
foreign shores for
The soldiery must
transported,1 maintained and
years
be
on
to come.
returned from the far reaches of
The latest devices and
the world.
inventions must fly the
conscripts
swiftly, the most modern gadgets
must be installed in their huts in
icy climates
sultry shores,
and the latest in jovial recreation
must
rouse
or
the
on
recruit
from
his
It is not apparent that the gar¬
without the United States
risons
will be less than 700,000 to
as
900,000
Nearly
must be in training or in
in the United States, at
in the next five years.
many
reserve
least.
Even
of compulsory
one
year
army
without
n /n
program
military training of
for all 18-year-olds, an
of less than 1,400,000 is not
'
a
_-r-
the world
of
freedom
others, while it may bring peace
from combat, yet it brings hatreds
also.
•//,;■
>./ •, /. <.;/
The
largest cost of the
over the con¬
second
Federal Government
is the Federal debt
which will total some $285 to $300
tinuing
years
billions
than
fisfcal
2%
during
tend
to
of less
charge
war
consolidated
years
but
the
war
after
have
debt
This
year.
interest
an
when
will
30, 1946, closing
June
at
194*6
incurs
an
1938__
1939__
Costs
Defense
$6,977
$1,029
world
8,361
1940__
totals:
f
■"
Admin.
Aid to
Agri¬
Public
and
Relief
culture
Loans,
Works
Benefits
$649
$582
557
1,206
2,925
1,159
866
Relief
Govern¬
and
ment
Debt
:
$926
|
941
2,291
1,491
6,301
2,144
1,691
1,208
709
563
1,141
659
556
1,041
1,111
1,260
72,109
879
1,029
535
602
1,808
769
79,604
2,700
916
3,600
916
557
97.0QO
550
924
402
105,235
97,000
550
924
402
881
60,400
45,000
600
900
400
1,800
1947
36,800
20,400
600
1,000
800
2,400
1948—
29,800
14,600
600
1,000
1,200
2,400
1949—
30,500
12,900
1,500
1,400
1,200
2,000
6,000
1950_^
29,300
11,700
2,000
1,400
1,400
2,000
1951—
30,300
11,200
2,400
1,600
1,600
2,200
The
social
promises
these figures
assistance
to
are
cut
in
surpass
given without
too
1919__—
1925-m-
in
>
683
$3,700 $7,200 $71,300
4,400
8,400
49,600
1948_
4,700
9,000
44,500
1949_ 30,500
5,200
9,400
45,100
1950_ .29,300
5,500
9,600
44,4'00
1951_ 30,300
5,600
9,700 45,600
1947_
36,800
29,800
We
have
reachdd,
therefore
within the tolerable range in er¬
of 10%, the expenditures for
$625,397,000
1,481,414,000.
2,154,779,000
2,876,939,000"
hopeful gentlemen. Present
national; income for 1945 is esti¬
and
mated at around
$160 to $170 bil¬
vt'
lions/:/;/'/.//;'; //•■' ■';//'
of its
5,200
2,400
5,600
2,400
4,000
3,000
2,500
3,000
6,200
2,600
2,000
6,500
2,600
2,000
,
difficulty, if the need pre¬
Federal Govern¬
has risen sharply after each
two major wars of the last
100 years.
-
considerable
degree.
All to¬
service functions have
other
prior to the war ab¬
to $6,600 millions of
in the years
sorbed
up
per
1913
/—
—
1924
$1,607,000,000
4,538,000,000
5,771,000,000
5,727,000,000
5,320,000,000
5,860,000,000
—
considerable in¬
crease in outgo is to be expected
as
there was following the price
level rise and the increase in scone
of activity after World War I. We
would
again
out
feeling
expect for calendar years:
-
$7,200,000,000
8,400,000,000
9,000,000,000
9,400,000,000
9,ouu,uuu,uuu
——
9,700,000,000
with¬
retaliation from the
governed. «
The
governments
•
of Europe
after
the last war drew ba&c
within these limits after a brief
ments
Up to the war, govern¬
of and within the United
States had not
ernors
are
done so. The gov¬
vulnerable to attack
if
they persist in the excess of 25%
after 1947 and politically are sodn
V.;.
expected
government costs after the
will result in continuing defi¬
done for.
„
\Z
,
Therefore, it is to be
that
war
cits.
Vis
a
lyou
1951_
normal limits in peace years
excess.
annum.
expenditures show in de¬
tail a vast rising trend of costs
for local government:
Here
sents itself.
ment
—
—
gether, these units between purely
governmental functions, utilities
and
budget
the
balance
To
American government
-
1940
$6,000
The cost of the
-
—
1936-
727
1,200
4,500
-w
1932__
718.
1,657
particular
v
1946_ $60,400
a
1928
656
26,011
much
Works
$632
..
,
105,235
down.
Gen'l
Interest
on
$804
than
National
These
Por'gn
Relief
estimates
•
Dollars) -// '•/*
State
Local
Total
,
great increase in
For the 48 States we
the trend:
observe
Governmental Costs
& Work
amplified
is thus
:3.,„ /V
./,,•
(Millions of
ror
likewise
cost
872
foregoing
is
tabulates the
into resounding
13,862
easily
expected:
V
given.
;
■
The outlook for all government
costs in the post-war years
their outgo.
panying table which
1945—
The
vated degree.
C
and
military
con¬
common
peated but apparently in an aggra¬
its
tals
Federal Gov¬
1944—
more
of
in the accom¬
881
■
11994540768
the- quinquennium
the
experience following
World War I is not only to be re¬
The
sent.
tion in the world,- the
ernment are shown
33,980
8,824
inflation' with
economic na¬
complexion
government, the temper of
the times, and the yearnings of
its
people,- this forecast is not
probably a whit overstated in to¬
erful
maining costs of the
whole expectancy
$2,142
f;
;> ;
Veterans
Nat'l
[ 19471951; as a igtional appraisal. This
figure is well above' those cur¬
rently quoted.
But, considering
the position of this government,
its |predicament as the most pow¬
during
national
(Millions of Dollars)
ment
tp pivot around an
$34 billions per year
of
.
of all
in the slirriconsiderable
1930
est expenditures shown here, the
ion and loans and assistance* have
1937—_
$46,500 millions ' in/ 1950, theire
been
a
recent policy,.
England 1940—
3,372,261,000'
would be required taxes of 33%%
would like $2 billions a year" to
194i::z
3,585,459,000' on a national income of $140 bil¬
sustain
her
economy. - Russia
lions, As 1950 is more likely to be
Like the national government,
would like loans of $6 to $10 bil¬ ;•
lions.
Our rescued friends on the the • States have been increasing. showing recession from the first
their
expenditures though during burst of postwar "prosperitya
continent as well as our defeated
war
they
have
remained national income of $120 billions
enemies look toward us with suph the
With the coming of 'Would require tax rates of nearly
plication.
To our Allies we ex,- quiescent.
40% to obtain the money to bal¬
tended lend-lease of $39 billions peace it is to be expected that
ance total public spendings by the
in four years, and chiefly in two. there will be a resumption of the
- nation.' ''
It is likely that the restoration of upward trend of State outlays.
But it is, however, dubious if a
Therefore, the development of
the fallen world will cost us above
nation-of the productivity ^of the
$20 billions in the next five years the pressure for spending by the
United States can support above
States leaves an estimate to be
in loans of a dubious nature and
of
the
years
from
1946 20% of the national income and
gifts of a positive kind for all sorts made
have great prosperity or maintain
of
j ^
ends,
rebuilding
destroyed through 1950:
a long period of 15 to 20 years of
facilities, improving damaged and 1946—
—$3,700,000,000
increase in wealth. With taxation
deteriorated
ones,
removing 1947—
4,400,000,000
wretchedness in occupied
terri¬ 1948,—_______ 4,700,000,000 above 25%, the failure to advance
is certain within a very few years
tories, facilitating commerce, supp
5,200,000,000
and decline in the national income
5,500,000,000"
porting faltering monies and1 ex¬
will result in five to eight years.
5,500,000,000
change and doing good in general,
The governors of a republic can¬
directly and indirectly.
As to
the local governments, not and the masters of a despot¬
these had risen after the last war
ism should not tax above these
A fair basis for all of the re¬
Total
Govern¬
by price and wage /rises
and* by
to
The pressure on school costs
particularly intense. Unit costs
per pupil, for both teachers and
plant, are especially vulnerable to
appear
average
dis¬
abroad meets with
general
considerat¬
slightly
Table of Federal
the
15%
which percentage-wise is a*
large reduction to have made.
would
of the
rehabilitation
interest
charge of about 2% or just
1946
nostalgia in foreign land.
men
the morrow.
For the
must cross
and
repress
the expressions of
others to grow, to expand, to take,
to
enrich
themselves, and
this
the
Differently from the Civil War
I, the military es¬
and World War
the plaudits to the
endure and the
sullenly re¬
the
1
effect, local government Will
is
have been around,
cost of the war
To - summarize 1 as - to national
government/ " expenditures,they
.
benefactor of today is
of
peace years
very
:UK
166,031
22,207
40,181
164,832
23,516
27,4.78
289,207
404,480
93,093
616,674 1,001,745 .-.366,981
782,172
736,824
.782,332
increase in activities some 10%
*7
benefits and
widespread
works, veterans'
all have
tressed
not
do
Victory
constriction
scarcely be less than $5,000.
personnel
the world, yet
above four and
one-third
is
The
For while the
willingly assumed.
138,000 men cost $489
millions, or about $3,500 per head,
while in 1936 with- 166,000 men
the cost of $619: millions gave1 a
unit cost of some $3,700 per head.
of
In
years,
20.4
public approbation.
military establishment of
a
,
five times the
costof government before thewars. " The costs
in the succeed¬
11.2 ''/Vi/
The interest on the
1
of between 30% and 40%
was
45.0
12.9
$6,841
5,349
8,050
,13,048
>
.
increase
11.7
•:'"r '•
assistance,
this size estimated and that it will
outlay.
sonnel
lie
promptly and decisively. Hence it
is to be concluded that the United
States will not disband so readily
as at the end of former wars but
that with the memory of World
War I experience it will tend to
ernment expenses, is the dominant
factor in prospective government
f
s
ment after both
14.6
-
63,513
/The cost of the national govern¬
these major wars
$ Billions
.
$2,776
34,601
135,441
111,580
$1,537
4,858
23,428
; 30,684
;
But these totals are only a large
in¬
government in the United States
As part of the total cost of govern¬ in the next five years.
/
/vi
For
items,
they
are
currently dis¬ ment in the United States.
i.Itis / an
astonishing sum -of
cussed
and generously endorsed there are the States and local gov¬
money without relating it to the
ernments within the United States
by the public press and munifi¬
national income of those years. '
and
these
instrumentalities add
cently expounded by political as¬
National income is expected to
their costs to make up the en¬
pirants of public fervor and large
tirety. '& ,TV\/'/;;////; be between $110 and $140 billions
popular favor,
"*■. :-v"per annum according to the wide¬
Turning from national expendi¬
Unemployment relief and as;sistance, aids to agriculture, pubr tures to those of the States, there ly variable estimates of economists
prepare
slowness
1925-29—
97.0
11,500,000
8,000,000
3,600,000
2,600,000
'2,300,000
2,100,000
2,000,000
$27,781
612,083
156,199
'
military establishment; or the
terest
on
the public debt.
sad
their
counteract
1918-19—
*1920-24—
prospective Federal expenditures
are
not of the magnitude of the
to
experience,
to have ample forces available to
after
1915-17—
Total Cost;
in
;
$21,233
25,894
54,525
-68,635
306,696
169,930
705,045
432,867,
509,549
1,157,442
15,660,361 6,297,990 8,575,591
4,603,951 1,322,456 1,296,095
3,700,040
737,741
660,961.
1910-14—
.
;in menace to actual or brooding
enemies.
And
republics being
dilatory in moving swiftly in their
themselves,
1871-75—
approximately:
-
v
World War I Era:
figure universally accepted.. A
long discussion of this interest
then need not be made.
.
•
•
; I
The remaining major items of
successful, there is a choice be¬
a lesser striking force act¬
defense
683,785
377,642
287,460
1866-70—
a
V.-/;";'"'
'■';//
$60,163'
1861-65—
expected to amount to
above $6 billions per year in 1950,
debt
military
ing promptly and vigorously and
larger force more slowly moving
1947-1951
United
States Government during fiscal
1945
are
given as $97 billions,
which together with civil costs of
$8 billions, makes the total of cost
at $105 billions. This war cost as
stated, however, includes indirect
military costs. As all together the
direct military establishment com¬
prised some 11,500,000 men/ the
unit cost per man was approxi¬
mately $8,500.
y
more.
tween
Prospect of Military Costs
costs of the
no
is
training program.
Furthermore,
the foregoing are by no means the
larger estimates of what is mili¬
tarily desirable or politically ad¬
visable.
war
there
above
element for the one-year
fata trahunt of the great Re¬
public at this pinnacle
of all
The total
the
1851-60—
1947-1951 would
Total
v.|/ Navy -7-*■:-■■■
3,200,000
2,500,000
>
1,200,000
/
800,000
: i
700,000
r
600,000
I
600,000
1,800,000
in
■
•
8,300,000
5,500,000
2,400,000
—
And
In
years
to be these,
Other
Interest
Civil War Era:
States in the ing
Military Personnel
Army
1946—
quo
The
intervening
appear
Veterans *
War
Civilian
(Thousands of Dollars)
V
and cost require¬
ments of the United
most
Government
>
* /'
.
The manpower
of
A naval estab¬
present size.
lishment of 600,000 men is a
It is
ness
that the Navy
tions it is unlikely
will abandon much above 75%
its
moil.
Pensions and
Yearly Cost of
(Continued from1 page 2707)
next five years.
i
,1947-1951, as a low, and it is likeljy
For eyes open or shut the United
about $45 billions in taxes, the
to be somewhat more. A garrison
States has become an imperialistic
rest being huge deficit financing. of
200,000 men in Germany, 500;Governments have commonly re¬ 000 in
Japan and Asia and 100,000 power and the first call of the imsorted to deficit financing in war elsewhere scattered would appar¬ perium is armed force and the irpand; as Adam Smith puts it, to ently constitute minimum foreign perium has external and internal
enemies to that way of life, even
avoid making: the war not unpop¬ forces for the Army.
assumed unwillingly. It may thep
ular.
In this case, little cynicism
The Navy likewise can only be
estimated
that the military
is needed to conclude „ that, the reduced in force to a position be
amount of the deficit was produc¬ commensurate with the duties of costs of the United States will be
tive of the objective sought but
heavy after the peace as its forces
policing the seven seas, support¬
of war walk on foreign strands,
that the quiet acceptance of so
ing the Army on its distant posts,
much prodigality by the general
regard
a
fermenting
maintaining naval and air stations uneasily
citizenry indicates a degree of and transporting men and supplies world and anxiously J search for
civic corruption auguring ill for
better
than
atomic
in a constant stream to the ends something
the future in economy.
The ex¬ of the
bombs in case of rebellion or tur¬
empire. Under such condi¬
tent
Average
v
,
expectancy
probable
reckoned upon in the period
Thursday, December 6, 1945
FINANCIAL CHRONICLE
vis to this
a
is
possible, in the
of mankind.
ence
United States is
course
condition, the
avoided as long as it
issue will be
in the
those nations
general experi¬
Historically/the
pursuing a fiscal
classical fashion of
embracing monetary
severe nature. The
therefore appear to
the consternation of all and the
surprise
of
most, despite all
troubles
of
a
troubles will
warning.
/
4'
.
Mii^lu^aSHB
Volume
;THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
162
2787
It is of such
Full Production Means Full
(Continued from page 2785)
public policy, but what is done for
you is
will
Special Privileges to Labor
But that is just quibbling. You
know and I know that for years—
nation
of
just since 1933—
mean
have become
We
and more a
more
privileges.
special
At
some times it has been one group
■Which
had
the
times it has
inside.
other
At
another
been
group.
But no matter1 what "group
it has
fcteen, the- net effect' has been to
jcreate stresses and strains and
cial irritations.
ing
And
and, perpetuation
privileges
special
of
have " extended
and'more
more
of
so¬
the grant¬
as
our
absolutely to be an in¬
cease
over
;
I hope it also can find its
The
not
lation
second
example of special
privilege I want to mention is that
accorded to labor.And just as
I am not a "free trader," so I am
baiter."
"labor
a
That
is
as
true
today as it was before the
Management-Labor Conference.
am sure:
labor's worst
today ' isn't
reactionary
But of this I
enemy v
It isn't, as many peo¬
employers.
to
recommendation.
President's
the
-Whether
it
do
can
so
will de¬
pend upon the success with which
the legislative proposal safeguards
against the following perversions
of the fact-finding pVinciple:
1—The-fact-finding
process
should be limited to disputes vi¬
affecting public health and
safety and not to general indus-
tally
ple think, the poor quality of so
much of present labor leadership.
Labor's worst enemy today is the
shroud
of
special
privilege in
support the legis¬
introduced to
implement
clear
way
try. '
i
answers
national
finding principle in its discussions
at the
Management-Labor Con¬
ference.
special privilege.
'
and I don't
Employment
strument of special privilege.
key importance to
questions of
policy that I be¬
lieve that Congress should create
a special committee of
experts to
have
boards
2—Fact-finding
verting prosperity into an infla¬
tionary boom and lay the basis for
more
dependable national pros¬
perity.
re-examine
the
whole
Now
money,
banking, and public debt problem
and report
specifically on what
legislative changes are needed and
benefits
from
should
not
economic
our
Through
study we
again have our whole
thrown into a
system
depression
through
mismanage¬
ment in the financial field.
Summary of Proposals
should
not
a
program
unload
men can
In
order
to
have
and
"froih scratch" for 7 To summarize, these are the
the underlying situation has be¬
each dispute. We should not es¬ three broad courses of action on
misguided
4'and
near - sighted
come worse and worse,
tablish a single, permanent agency the economic front
and our
necessary to
friends. I think I can show that
economic and political system has
•or panel for this purpose. A per¬
America's continued progress:
best by reference to some of the
become increasingly vulnerable to
manent agency - inevitably would
1. Encourage an adequate flow
things that happened at the Man¬
attack, both from inside and out¬
of private capital into productive
agement-Labor Conference.* "7 \ {establish certain fixed patterns—
side.
i.
as
did the War Labor Board— job-making
,77" 7 'V,:;;-,;'.
activities, thereby
:
The management delegates went
We have got to clean up this
which would encourage one party
tives of management are
situation] "And
wages
economy,
which it has been
wrapped by its
be
appointed
,
the' only way.it
can
be cleaned up-.is' to get rid
of these special privileges.We
have got to get rid of, not just a
few of them, and not just those
which"
but
I; *v.
don't
we
happen
all -of -then)!
like,
to
v7lvr;77-7-
I recognize, of course, that this
cannot
be " done
overnight.
But
that does not justify delay in get¬
ting, started.'
r
.
'7tv
J
Don't think of this
tive
as
a
..
nega¬
simply because ;it
may involve* undoing things that
have been'done or. repealing, laws
that are already' on the statute
books. It's just as positive an ac¬
tion as .pulling the weeds out of
your garden so that what should
be growing has a chance to "grow.
Let me give you a couple of
examples of what I mean—and
program;
into that conference with a whole¬
lor the other to by-pass the basic
hearted -L determination;/ to
find collective bargaining and concili¬
answers to W many of our pres¬
ation processes in order to get its
ent industrial relations problems
case as quickly as possible before
possible.
as
And
our
program
the fact-finding group.
7
of /vague gener¬ j 3—The board should hear all
prepared with
appropriate witnesses 1 presented
specific suggestions and recom¬
by either- party, but should have
mendations of just what, in our
no
subpoena power to undertake
opinion, should be done. ?■
'1
"fishing expeditions" into the con¬
7 Labor, on the contrary, had. no fidential affairs and records of
such ;program.
It. had
almost leither the union or the: company.
•nothing to offer in; the way-of I 4—The board should be limited
solutions. And the reason it had to the finding of facts; it should
wasn't
alities."
just
one
We
were
nothing to offer became" clear very
early ih The conference. It was
because labor prefers to maintain
the status quo. Its stock answer
to everything suggested by man¬
agement was "no." And having
said-"no," it had nothing-else to
offer..:./77/7-/7^ '7/7" '7v.h/' ;7
Labor wouldn't even/agree to
hot take sides by issuing
for
mendations
the
pie, the businessmen of the nation
must show them that the objec¬
reasonable
jobs for all who want to work at
which will provide an everwidening area of security for our
We must
ever-increasing flow oij
or
3.
and services to the public
attractive prices. We must
a
high and fairly dis¬
tributed level of prosperity for all
persons, all groups and all sec¬
prices,
and credit
system, and stop maneuvering the
for
tions of the
7
nation.
Development of this leadership
in
over-all
ment
V-7••7/:
money
we
more
stand
various sections of the
Restudy the
an
goods
thereby creating a lack of living
groups
shew that
workers.
want
at
standard balance between various
country. '
predomi¬
nantly in the public's behalf. We
must demonstrate that we favor
is
an
by manage¬
indispensable "must"
purpose
of the future. We've all
got to be
bigger men, of wider interests and
settlement of
the
recommenda¬
Such
dispute.
recom¬
at
the
hold
confidence of the American peo»
making it possible to have that
growth of capital resources which
is necessary to provide increased
production and jobs for our grow¬
ing population,
2. Stop the granting or perpetu¬
ating of special privileges which
hinder production or prevent the
flow of goods and services to final
consumers
on
Individually and collec¬
tively, we men of management
have got to work within the sys¬
tem to
make enterprise pay its
richest
blessings to the people.
More, we've got to work outside
our business in constructively ad¬
vising government on the correc¬
tive moves which I have outlined:
not as an expression of personal
irritations, or as an airing of our
pet prejudices, but in a sincere
effort to help all Americans.
what policies must be followed
by
banking authorities in order to
assure
that we shall realize the
maximum
is
others.
the
money and credit system.
lack of foresight and
this
which business
77':7
7
■
Federal debt, so as to avoid con¬
to these
fiscal
tions would be the moral equiva¬
lent of compulsory
5—There
arbitration.
should
of
forcement
strict
be
en¬
the
principle that
maintained
Ifm deliberately picking hot ones.
by both parties during the fact¬
an
effort to define the functions finding procedure. If management
'7 ;
The Tariff Question • 7
of management, although we made should attempt to modify the con¬
Firsts there is the question of a real effort to get that issue set¬ ditions of employment, or if the
the tariff. :Now I am not a "free tled. We drew up a list of some union should order or permit a
trader." I am convinced that the thirty odd specific acts, such as strike,
the
government
itself
tariff has played a major and con¬ the determination of prices, ac¬ should have appropriate rights to
structive part in the development counting procedure, and so forth, enfore sanction to maintain that
of this
country.. But all of us which it seemed clear to us must status quo.
7'777 "-'7
7:. 7'
loiow that the tariff can be,' and be reserved to management/. La¬ 7 We will need still further legis¬
too often has been, used
bor
refused
to
accept
a
single
lation
in
the
labor
field.
But at
im-ways
which
benefit only .one
small one, and we were told officially least we have now recognized
group at the expense of the coun¬
by one of the labor delegates that openly that labor's admitted right
try as a Whole/^ We also know the reason they had refused was to strike is a right which, in com¬
.
.
the status quo must be
*
that it
be used in such
way
that
production, compe¬
jobs, and thereby lower
may
can
to
aS
tition and
rather
than
raise.-the standard of
living- of the
And
if
a
curtail
certainly
America
place
in
American.- people.
we all know that
is
the
,
to
-maintain
worlcf,
and
her
attain
maximum prosperity and security,
..that the tariff must not be used
merely-as-a means for protecting
^nd enhancing the economic
po¬
sition of this orjthat produce* or
groqp. Rather, we must use the
tariff
positive tool for
and strengthening
as
a
de¬
veloping
the
paste productive capacity of the
*•
nation.
;T
.
j Specifically,..as I see the prob¬
lem,
at
future
some
time
labor
of
bring
to
want
any one
these functions into the realm
collective
And
so
bargaining.it
was
on
7 7
<
of
-
La¬
be¬
It refuses to accept
responsibilities 7 comparable
to
those of management:. 7It refuses
'to give up the.:,right, to
strike
while. negotiations are going on.
It refuses to accept the sanctity of
contracts and to provide a prac¬
tical means for 'enforcing their
'provisions* It refuses' to7provide
any protection to employers, em¬
ployees or the public against rep¬
resentational or jurisdictional dis¬
fore the law,
should continue to use putes. ;7"';.v7' ,777
v.;
the tariff to protect our markets I 7 In brief,; the position: of labor
against
Government - subsidized Today is that it has been legally
we
jumping of foreign products and
unfair method of
pvery other
petition.
com¬
should use either
subsidies, whichever
Congress determines will be the
piore
quate
we
or
economical, to
„
production
of
ade¬
assure
those
items
.essential for national defense.
T
Finally, in our own self-interour over-all national policy
&st,
should
be
one
of
gradual reduc¬
tion of tariff duties.
ti6n in each
case
Such reduc-
should be contin¬
ued to that
point jwhich will max¬
imize production and consumption
under competitive conditions in
this country. At the same time,
the
rate
of
such that it
reduction
does
not
should
be
unduly dis¬
rupt our domestic trade and
ployment, nor offer difficult
ministrative
em¬
ad¬
problems.
7
But for the moment let's over¬
look that. What I want to em¬
phasize is the necessity of having
a
tariff policy which,
at every
point, will be tested by the gauge
of
public, rather than private
group, welfare; a
in
-
the
driver's
seat
and it is
unwilling to give up any
special privileges involved
this position.
of the
.'7 7 <'
■
3/.Second,
the tariff
; established
or
tariff policy that
in
As
I
said
a
few
minutes
ago,.
with
all
human
other
free¬
doms, may be qualified and reg¬
ulated in the public interest.
>7
almost every
problem, that was brought up.
bor refuses to accept equality
mon
As
a
result of the studies of the
Management - Labor Conference,
Congress now has some basis upon
which to arrive at a \sound de¬
cision
need
on
to
Sound
The
which
the exact changes which
made in our laws.
be
Money and Credit System
Needed -7
7;,./777/
third
broad
must
we
line
of action
follow if
we
are
enjoy the continuing benefits
of full production with full em¬
ployment PLUS is sound manage¬
to.
ment' of
our
money
and
credit
system, and above all the sound
management of our Federal debt.
must
We
have
clearly-defined
must
We
have
a
stable
monetary
definite
and
unit.
limits
placed upon the credit expansion
powers of our commercial
We
must
make
interest
serve
as
a
banks.
rates
guide to the degree of
I am not a
"labor baiter."
I'll strain to which our financial sys¬
fight with labor against anything tem is subjected. We must make
that is designed to undermine the the banking system
serve as
a
basic lights of labor.; But special handmaiden of our economic sys¬
tem.
We
must
not
privilege is not the right of any
permit it to
man, or any group of people, in attempt to control the volume of
this country. Yet that is what we business activity.
And, finally,
must get the public debt into
are
we
bor
the hands of those who will hold
up against in the field of la¬
today—just as a generation or
so ago the
public was up against
special privilege in the field of
business. And" just as it took leg¬
islation
abuses
to
meet
the
business
it
permanent investment until
the bonds: are paid off.
These are questions of national
as a
We, too, have
hands full this time of
our
FEEL
year. '
'
For us,
.
December
24
and
25 are
Distance switchboards—and
fiscal
policy to which I do not
profess to have pat answers. I am
of those days, so - it will
legislation to solve the labor convinced that there is no one
problem of today.
f person, or no group of persons,
who can indicate in detail just
Truman Labor Program Approved
what would comprise such sound
President Truman has made the management.
But this problem
first move in that direction with must be solved. The mismanage¬
his request for statutory
author^ ment of money and credit and fis¬
ity to appoint fact-finding com¬ cal policy, during the past cen¬
missions in disputes of major sig¬ tury, has been second only to war,
nificance.
and perhaps not even second to
Management supported the fact¬ that, in causing economic distress.
take
KNOW JUST HOW YOU
WE
always busy days at Long
they will be busier than ever
this Christmas. There will be
unavoidably long delays
on
*
Lorig Distance and some calls may not get through at all.
You
the
will
get
holidays.
BELL
quicker service
7
,
a
few days ! before
7
TELEPHONE
SYSTEM
or
after
.
2788.
THE COMMERCIAL & FINANCIAL
Thursday, December 6, 1945.;
CHRONICLE"
1
..
.
the
frOur
Rep orler
.
ments" have thus far been taken in stride, with certain issues push¬
ing
to
on
tops, such as the longest bank eligible taxables and
the long partially exempts.
Heavy subscriptions Were made on
Monday for the loan bonds, because the institutional buyers wanted
to put their funds to work as soon as possible; in order to save
new
.
.
make
will
mittee
lot
a
of
marked,
doors
__By WALTER WHYTE—
..
r
present at this writ- \
ing so it might be practical to
vergence
noise and bluster and end up
about the
Says —: ;'
.
*■
'
t
looking'' for
i
early to say. exit.;:,-,
past is any yard¬
In any case there is no dir
stick of the fuure, the com¬
Waller Whyte
The final week of the
Victory Loan, in which institutions are
entering their subscriptions to the drive issues, finds the Govern¬
ment bond.market at all-time
highs. /
"Normal portfolio adjust¬
y
if the
But
Markets
By JOHN T. CHIPPENDALE, JR.
■;
is .stilLtoo
out
Tomorrow's
Gover"
oil
committee will work
new
place that all take on a feW more stocks^'
in.
provided they are still' ob-'
same
such committees end up
j1. ' >/; .V;*'<' '■ #• '//';/
tainable at
j; But; whatever the
jthe time
reason
stocks
for
the
resumption of the
Resumption of up A trend
rally
it was enough to remove
brings in new buying. Rotat¬
the fear selling that the Gen¬
ing advances in new groups
eral
Motors / strike
started.
pushing utilities & steels to
the fore. Divergence of aver¬ How long this present buying
specific prices by
read this/ The
you
are
follows: Ameri¬
as
can
Foreign Power 2d Pfd.y
buy between 35 and 36, stop
34; American Steel Founders
between 40 and 41, stop 39;
wave will continue
is some¬ Flintkote between 36 and 37;/
ages, when, as, and if, may
be signal for completion of thing else. So long as buyers stop 35.% As a matter of fact:
there
is / a
BUYING OPPORTUNITIES •' y i
possibility that
; i-/ - J- v -A
t".':r" present cycle. •//A AaA'AA: are in there with wide-open
/'.With the last big public financing drive almost history,/'.and
pocketbooks and are willing these prices will be history by
\A//A
A:A*
/A
the new' pattern of financing quite clearly defined—that'^ of issuing
to pay almost anything to get Thursday. So it might be ad¬
In.; last week's column I
short-term^ low coupon obligations to cut the debt'burden^ and low
visable to buy them at/thewarned
that : indiscriminate aboard, so long will they go
accrued
interest, which has been accumulating on these obligations
15th of November.
These purchases, principally for
cash, were for the limit allowed under the Victory Loan formula.
Some deferred subscriptions were entered
by institutions that have
securities which will not be completely liquidated until after the
drive is over.,.
\' ' ; ././'; '
since the
...
.
.
.
.
.
.
interest rates-assured for
time to come-^-any minoi4 price de¬
market, that may result from adjust¬
due to the Victory Loan, will be welcome buying opportuni¬
Under the indicated program of future Treasury financing
some
upA,: piece ;of news can market. 1 But whatever levels *
the advance; if it is obtain then the stops remain
ties.
serious enough and full of fixed. To the above I suggest
as it let
up the basic up-trend
there cannot be any substantial recession in
Government bond
it can Pepsi-Cola if obtainable near*'
of the market would reassert headline inspiration,
prices.
/ /-//A A/A A A''AA-''//AA/;AA AA/- AAA'/' AAAA'A//
the 34 level. ' The reason j
itself. What worried me was do more than check it. / The
A"
Nevertheless, the market for these securities is still made :
by human beings, which means that Government bond prices
to what extent a public scare public being fickle can turn pick that price is that it rep- :
1 will continue to fluctuate, in the future, as they have in the
around and start selling just resents the stop point. -; The;
psychology could affect prices.
•A past.
Accordingly, one should be in a position to purchase
as
easily as it is buying to¬ same • thing applies" to New ;
Apparently the public selling
*. the issues that meet individual requirements during periods of
day.
If that happens, the York Central. It looks higher
didn't
changing prices, which will occur from time to time.
get far.
At least it
A/A/
storm that will be kicked up with: 31-32 representing the
stopped
almost
completely
PORTFOLIO CHANGES
will be one you'll remember buy point and 28 the critical
Monday morning and by the
Although no late figures are available on purchases and sales
*
for
a
'
long time.
At this level.
time
the
afternoon
of Government securities by the various holders, the most recent
passed
Treasury bulletin shows that life insurance companies and other what
selling there was writing, however, the skies
You already hold Lockheed
seem blue,
investors were the principal sellers of the 2V2S of 9/15/67/72.
and what clouds
changed to buying.
During the month of August the former disposed of $38 millions and
there are don't look particu¬ at 32V2, it's now about 38,
public selling
clines in the Government bond
ments
.
.
was responsible
for the sell-off and that soon
check
.
.
.
♦
.
.
.
.
•
.
.
,
.
.
.
,
the
latter $44
millions, with the commercial banks the main buyer
in the amount of $79 millions.
.
.
.
.
are
,.2
not
amounts
selling
longest
the
they
as
vestors still
insurance
eligible
past.
.
.
issue
in
point
sizable
as
Nevertheless
.
other
July.
.
J, The
in¬
to be taking advantage of present high prices
...
principal sellers
posed of $70 millions in August and $237 millions in July. , . . Sav¬
ings banks let out $29 millions of this bond in August and $42 mil¬
lions in July.
<A'/ J
,y
A: ; //
...
..
...
,
MORE OF THE
SAME
During the month of August the 2s, due June 15, 1952/54, were
bought by the deposit banks to the extent of $63 millions, with
$34 millions being taken on during July. . . . Other investors sold
$39 millions of this security in August, while during July they
bought .$27 millions. , .
Savings banks sold $18 millions in August
and $26 millions in July.Life insurance companies sold $1 mil¬
lion in August and $36 million in July. ... The 1V2%,. due Dec.
15, 1950, were taken on by the commercial banks in the amount
of $105 millions during August and $333 millions in July. ... Other
investors were the principal sellers of this issue in both of these
months. /A/v
A'-': V./
-'AA'-'!AA"/'''
In August the commercial banks bought $57 millions of the
.
.
'
2%, due Sept. 15, 1951/53, and $45 millions
6/15/48, with other investors the sellers. / .
the
of
chasers
with
of the 1%%, due
The largest pur¬
partially exempts were the commercial hanks,
making their most substantial commit¬
27/$%, due March 15, 1955/60, fol¬
by the 2%%* due 6/15/58/63 and the 2%%f due Sept. 15,
ments
during August in the
lowed
1956/59. v/
These
/
,
this, obligation
but
August,
no
their
was
commitment
largest
the partially exempts in July. . . . The sellers were insur¬
ance companies and other investors. . . . The intermediate and short
maturities of the partially exempts were disposed of by the com¬
mercial banks during August, with the principal buyers, other in¬
among
vestors.
VINSON'S POSITION
f.-
-
.
Secretary of the Treasury Fred M, Vinson in- a speech at Indian--
apolis, Ind., last week, left no doubt as to Where the Government
stands
on
interest
rates.
.
.
He
.
"It
stated:
must
f
Troops
broader
domestic
understanding of affairs,
and international.
There is
doubt that the Uni¬
no
ted States has emerged from this
war
as
the
greatest power on
earth.
•
For
this' is
not
the
end
of
a
glorious epoch. This is not the
collapse of our civilization. This is
not the decadence of the
West,
featism charges leveled at our
ciety.
The
/
-
t.
-
United' States
.
-
is
..
-
so¬
*•"
still
a
young nation, with vigor in its
bones and courage in'its heart. It
still has seasoned,
willing leader¬
ship perfectly capable of building
the edifice of
a
better America for
alb
burden
be remembered
of
this,
to the American soldiers
the
industrials closed off
The
the
day.
29
who
had
message,
under
served
him.
issued by the War De¬
partment, was sent to Gen.
seph T. McNarney, who has
ceeded Gen. Eisenhower
ican
in
commander
as
Jo¬
suc¬
Amer¬
Europe,
and
addressed "to every member
of the United States forces in Eu¬
was
the
much
to do before the peace which they
helped to win "can be firmly con¬
troops
that there
was
solidated." He added,
the Associated Press:
yet
according to
"In the memory of those gallant
who can never return,
and in continued loyalty to the
principles of free government for
which United Nations waged this
war, each of us inust give his un¬
remitting best until the job has
been fully completed," he said.
-
If I
of the
what the Government
burden is heavy and
.
'
the
that
wants
They are presented an
those of the author only.}
'
'
unanimity
the
LAMBORN & CO.
it is for the
of pointing out that
time to stop looking and
99 WALL
•'
'
ages
there
is need: for long-term
as;
^This trend toward
lower
interest
confined to England, but is world-wide.
rates,
is called
a
Exports—Imports—Futures
.
is
the
trader
shrewd
starts
otgby; ;4-272f /;;
1,J
+ ,
j.; • * yj
;
v
,7, j <y-
Pacific Coast
Established
■
Securities
1856
r
;
H. Hentz & Co.
Coast Exchanges
/—New
New
:
hot
.
.
divergence enters the market
Schwabacher & Co.
]
;
New York Stock Exchange
New York Curb Exchange' (Associate)
Chicago Board of Trade
.
Members
~l
t
'
'cortianat T-41S0
..
Chicago
New
^ ;
Exchange
Exchange/
Board
Orleans Cotton
And
,
Inc.J *
of > Trade ' * /
Exchange ;
other Exchanges
,
.
Yor|t S, N. Y.
N. Y. Cotton Exchange
NEW YORK 4;
'.^^iatypfe.Nyri-s^a
'
-
"
.
r-,
botton .Exchange
York
"Commodity
'
Curb
York
.
.
! New
r
-Members.-;
York '• Stock'- Exchange-,./;;";
New
capital, as^ there
■
/
yii sugar
When
divergence.
-
the ;debt
however,
Y/
start going off in differ¬
directions, creating what
14 Wall Street
./it ^qJqngT
STREET
NEW YORK 5, N.
begin acting is when the aver¬
certain
them tQ;bec;,
with
Chronicle.
averages
: Pacific
England, the level of interest rates in; that country will be
,
' "
-f
do not
coincide
time
purpose
.
low.
*
stress
expressed in thin
necessarily at any
those of thm
view8
Orders Executed on
2V2% and 3% bonds
would be
discontinued-shortly and that other V/z% obligations
would be. converted into
1.% % issues, is further proof of the fact
that under
Jthe modern managed economy, interest rates will be
in
article
of the session.
*
;
—Walter Why*
[The
,
heavy debt burden, it seems
reasonable to conclude that the
Treasury will continue its policy
of
lightening; this load, wheneverthe opportunity presents
itself.-.
; •;'.' ;■
-;; ; '
is
levels
best
the
announcement
same
More next Thursday*
v
ent
comrades
on
The next day, Fri¬
day, both averages worked
together again. They opened
above Thursday's closes and
finished the day at about the
were
British
52
at
sent a farewell message on
Nov.
With the Government in control of the
money markets, and
conscious of the effect that only a
slight, increase in interest
..rates would have oh the
already
The
Union
which is still about the
V/A
:
public debt would be greater if the level
only slightly higher.... A policy of low interest
rates clearly benefits the taxpayer
by making possible a lower level
of Government
expenditures and consequently a lower level of
taxation-than would otherwise be
possible."
*• '
'
of interest rates
„
This is not the fulfillment of any
of the smearing, socialistic, de¬
the
V
*
Eisenhower,
<£^ that
,
dipped below 190. But the gerous one to hold once they
dip merely brought them in start going down. We'll hold
who had
intended to return to
line with the opening levels Western Union for one more
Europe for a last visit with his
week.
If
it
doesn't
show
troops before assuming his new of that day. The rails on the
duties
as
Chief
of the
United other hand opened that day more pep; than it has recently
States
Army, prevented, as he with a
gain, dipped with the I intend to ask you to sell it. ,
said, by circumstances from doing
;v;, / .-/-j;;
industrials, but together with
General Dwight D.
The General's message told
;vAAAA';;A: A / "AAv / ■A A/" ""1
purchases of the 2%%, due 12/15/60/65
A/'^AA
,
made
banks
1
ture
rope." It read, according to Asso¬
ciated Fre^s Washington advices:
"To each of you—goodbye, good
luck, and my undying thanks."
institutions
these
during
.
*
Looking
plan—to ap¬
fact finding commit¬
a
to His
dis¬
other investors, who
were
;
at the price struc¬ price. At this stage of the
through technical market cycle I frankly don't
care for a stock like Western
tee
to
settle strikes.
How glasses, it is all to the good.
The lowest point the indus¬ Union which is behind the
trials made during the past parade. A stock which fails
Eisenhower's Farewell few / days was during the to go up with the general
Thursday session, when they market-can easily be a dan*
companies
2%, due Dec.. 15, 1952/54* were bought by the commercial
the amount of $105 millions in August and $282 millions
banks in
in
life
the
bank
in the
have
seem
to let out their bonds.
The
that
are
A A A,A
attributable to President
Truman's latest
■
.
indications
Present
was
Western
and
Oddly enough the buying larly ominous.
In July, life insurance companies
millions of these bonds, which were bought by the deposit
institutions.'.
■ '-A/,1
: AA''A'''V'AA' ; AA
sold $30
N;
■r-v...
Private Wires to
-
San
Francisco
Monterey
Principal Offices
-t—
Santa
Oakland
Fresno
—
Barbara
r.
Sacramento
J' JPITTSBURGEt,'
.GENEVA', SWJTZERtAND
CmCApO v
"
; DETROIT
/Volume 162
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
Bendix Luitweiler
1..
? ;• 4"
I.
(Continued from page 2703)
\ tides, trusts, monopolies, "yellow
increased ability comes only with
j
power.-,/—-- :•/•';j'/'
increased
dog" contracts and injunctions in
labor disputes have all been prohibited. ' '■••"7V 7/ ■ 7 7- '7 7' 11
?
tYet strikes
are
assumed
to
be
right.
I certain
If this be true, it is because
groups of our people ajre
That
strike represents
might
occasionally ac*
knowledged even by labor leaders.
Thus recently a CIO spokes¬
man, attacking Utah Copper Co.,
wrote:
7■>
:V"
and
:
'
a
not right is
■'
sion of the War Labor Board
/to
•;
.
concede
1
reason."
nothing
on
is
will
basis of
a
:777;:- 777 /7;"r//'
abundant economy,
cannot make a worthwhile place
Might is
to
In
Nearly a quarter of a century
Justice George Sutherland
first requisite for
maintenance of government by a
free people when he said:
stated the very
gov-
.
No reasonable
truth
of
ployees'
possible.
will
Trustee for Mr.
no
longer
van
Marie.
act
as
Hampton
New
&
Rust.. 61 Broadway,
City, members of the
York
New York Stock Excha^^0
,
/v;-
true
of
/
V
•
'
:
to
holders of
,
A
Pacific Gas and Electric Company
a
FIRST AND REFUNDING MORTGAGE BONDS
po¬
OF
SERIES I
(}'/;%) DUE JUNE 1, 1966
;
rep¬
the
em¬
chooosing, will
.•./)
be
/
.^49,000,000 principal
amount of the above described bonds, drawn by lot,
$49,927,000 principal amount issued and outstanding, have been
called for redemption on January 1, 1946.
'
!
of
a
total of
.
Harold Chapel With
'
McDonald-Moore & Co.
(Special
to
The
DETROIT,
Chapel
with
1
Financial
MICH.
has
Chronicle)
7/'
Harold
R.
—
become
associated
McDonald-Moore
Penobscot
Building,
the Detroit Stock;
/ &
Co.,
members
of
registered owners of called bonds desiring to receive immedi¬
ate
payment of the full redemption price (including premium and accrued
interest to January 1, 1946) may do so upon presentation and surrender of
such bonds at the office of City Bank Farmers Trust Company, 22 William
Street, New York, or at the office of Pacific Gas and Electric Company, 245
Market Street, San Francisco, or at the office of American Trust Company,
464 California Street, San Francisco. .Coupons for interest due December 1,
1945, or prior thereto, if presented with the bonds, will be paid at the same
time.-
Exchange. Mr.
was. formerly a
partner in
f
v
V'•
Attention.;is directed
the fact that
to
*
:;v"
not
;
"
'
'
■
" '
'
man
77:/;:/7
Newport News ■ ;7/'7-/77
Shipbuilding and Dry Dock Company
will dispute
Statement of Recorded Cost of Work Performed During the Thirteen
and the
redemption. A list showing the serial numbers of
be obtained on request at any of the offices above noted.
Thirteen Weeks Ended
/;////'y.Sept. 24,;','
1945
S
j
Conveisions '
'
■;/'•'
tion of collective bargaining rep¬
•
*
••
Sept. 25,
••
:
,
'
,
.
With a
straight face we tell the employer
to bargain in good faith and watch
the labor leaded make unreasontable demands, backed by the ex¬
pressed or implied threat "give in
or we call a strike." .7/
7;77:7
j
Sept. 25,
To the Holders
1944
1945
$74,678,000■»
*
5,111,000
842.000
3,417,000
2,176,000
$31,986,000
$80,482,000
^ Series,
Totals
1,414.000
-
*ao*)21,000
-
By Order of the Board of Directors
Southern
*
husines»
;
October 1,8, 1945
■''
Comptroller
the.
only those of
us
REDEMPTION
NOTICE OF
gage
'/■■/:
/'■
'V/1
erty.
While
/'77/v;
asserting
high moral
position in international affairs,
demanding that right pervail over
might, we ignore the issue of mo¬
rality in using force at home. We
a
(are not shocked at a threatened
"'demonstration" strike by Ward's
employees,—an action comparable
to
the
Manchurian
between
!lwe' stand
the
for
border
Russians
raids
and
the /'slow
Japs;
down,"
/which is the younger brother of
in the
neading,
at
the following
Development and General Mort¬
Bond, 6% Series......................
$1,180.00,
.
NORTHERN
REFUNDING
AND
IMPROVEMENT MORTGAGE
Six and One-half Per Cent Series
/ •-'yr'W
Mortgage
8°/y Bonds, Series B, at 110% of their principal amount, together with accrued
Bonds should be
The
■
,
.
:*
*
...
'
.
*
Bonds will be paid for in the order in which
presented until the
shall have
have been
fiat life
r, tin
"
acquired, provided, however,
Company reserves the right
(a) to accept such additional principal amount of Bonds, if presented
within said
period, as it may ae
Tot (to the nearest $1,000
above
aforesaid with all coupons payable July
strike, we permit "featherbedding" and take on the chin the
Bank of the
assignments,'with signatures guaranteed.
.
.
Coupon bonds should be' presented and surrendered for payment and redemption as
1,1946, and thereafter attached. Coupons due January
1,1946, may be detached and presented for payment in the usual manner. Interest due January
1, 1946, on fully registered bonds wilt be payable only upon surrender of such bonds for re¬
demption. Registered bonds, in cases where payment to anyone other than the registered owner
is desired, mtistirtj accompanied by proper instruments of assignment and transfer.
al
Fijrst National
New York 15, New York.
William S. Tod, Trustees, and that on January 1, 1946: there will become and be due and
payable upon each of said bondrat the office of J. P. Morgan & Co. Incorporated, in the
Borough of Manhattan in The Ci.y of New York, N. Y.# the principal thereof, together with
a premium of 10% of Such principal
amount, and accrued interest on such principal amount
to said date. From and after January
1,194^,-interest on said bonds will cease to accrue and
any coupon for interest appertaining to any such bond and maturing after said date will
become and be null and void.
;
/ '
"
.
presented
at the office of the Company's Agent,City of New York, #2 Wall Street,
Coupon Bonds must be surrendered with
April 1,1946, and all subsequent coupons attached. Registered Bonds
must be
assigned in blank or be accompanied by appropriate detached
on such principal amount to said date, in accordance with the terms of said bands and
the provisions of Article Ten of the Refunding and Improvement Mortgage, dated July 1,1914,
from Northern Pacific Railway. Company to Guaranty Trust Company of New York and
,
from
October 1, 1945, to December
31,
1945, inclusive, (being $16.25 foreach $1,000 Bond).
amount
ment
v;''7
Development and General Mort¬
gage Bond, 6^2% Series.v................... .$1,220.00,
together with accrued interest on the principal
NOTICE IS HEREBY GIVEN that Northern Pacific Railway Company has elected
to redeem and pay off on January 1,1946, all of the above-mentioned Refunding and Improve¬
interest
principal
For each $1,000
6% BONDS,
B, DUE JULY 1, 2047//':
/ SERIES
the
from October 1, 1945, to December
31,
1945, inclusive, (being $1.5.00 for each $1,000 Bond).
RAILWAY COMPANY
PACIFIC
on
amount
to the holders of
belong
:1
out
together with accrued interest
who
to a union whose rights
are now submitted to the test of
power and not to the test of lib¬
;
For each $1,000
Supreme
of this country say
it is
r
Six Per Cent Series
it is all
right for racketeers to threaten,
and even to attack peaceful far¬
mers trying to take their produce
to market, so long as they preface
their attack with the words "give
me
a
job,"
and
provided,
of
course, they belong to a union,
Since
-/
:
prices:
,
-ICourt
]./•
/• •
Railway Company hereby extends Ulitll th© 4*fiON© Of
on
Monday, fiteeeinber 24,1945, its offer to
amount in the aggre¬
gate of the two bond issues set
Permitting Aggression at Home
witnessed
■
purchase,, for retirement, $5,000,000 principal
;
■
r*
.
6Vz% Series, due April 1, 1956..
•/; *7
$97,135)00r
-
due-April 1, 1956;!/(;
Development and General Mortgage Bondfe,
*
We
of Southern Railway Company's
Development and General Mortgage Bonds,
2,38 f,000
'
;
:
$89,848,000
2,430,000
mentioned
$5,000,000
principal
amount
amount
/ Bonds in
a
NORTHERN PACIFIC RAILWAY COMPANY
.
excess of said $5
determined by the
Company
-accepted bears to the total additional principal amount presented,
without preference between the two Series, or (b) to
reject any
amount offered in excess of the first $5,000,000
principal amount
presented.
7
The Agent will
pay, with reference to any Bonds presented for
,
ijcost
of
jurisdictional
'
questions
and
disputes, all of which increase
costs instead of increasing pro¬
ductivity: Yet " we certainly do
Tkriow that the only possible way
ipf raising wages without injury to
/the, worker through inflation lies
jn increased productivity and \ye
know that increased wages follow
increased productivity as surely as
the day follows the night, jf for no
other
reason
than
that ; industry
^/understands that its
market grows
only with the increased ability of
The people to. purchase. And that
If
'
'
i
'
■
-r:.
'
.
'
'
■
.
•
•
'
r
.
;.
'
.
'
' '
'
v
;
'
A. M. Gottschald,
By
.
<
New York, N. Y., September 2G, 1945
v
.
.
'.
Secretary
.
account
/r
of
Member of
OFFER OF PREPAYMENT
/
/
.
Holders desiring to receive immediate payment of the full redemption price including
interest to January 1, 1946, may do so upon presentation and surrender of said bonds at the
office of J. p. Morgan & Co. Incorporated, in the Borough of Manhattan in The City of New
York, with the January 1,1946, and subsequent coupons attached.
;
1.
owners
thereof
National Securities
by
any
Bank, Trust Company,
Exchange or Member of the Na¬
Security Dealers, Inc. (such Bank, Trust
Company or Member not being the owner), a commission of $2.50
per $1,000 Bond.
/ /
"7All Bonds
purchased are to be cancelled, and United. States Stamp
Taxes are not
payable on the sale.
tional
7
the
a
Association
/."7/
Washington, D. C.
December 3, 1945.
/
Electric Company
and
i
.;
and
:
'^7.
.•/:
(
Pacific Gas
By Raymond Kindig, Secretary.
,
Weeks
/
Sept. 24,
; ,v
77/.
$28,714,000M
743,000
Hydraulic Turbines and
AcCfeMi(es«n4 Other
'Work
...
/V
We do not permit
voting for the selec-
_
/
Thirty-nine Weeks Ended
•'"'1944
$20,864,000
Ship Construction
ip Repairs and
/
.
'
'
selection of rep¬
a
(Subject to year-end audit, charges and adjustments)
7
Wew
■
.
Thirty-rune Weeks Ended September24,1945 and September 25,1944
»
■
v:
resentatives of employees.
j
'
all outstanding Series I
Bonds have been called for
the bonds called may
//'■///-■'
ingly choose.
cumulative
;
rl
.
collective bar¬
really
owii
'
PREPAYMENT OFFER
will place
Chapel
resentatives they would not will¬
;
De¬
formerly
,
Holders and
firmly resolve that right, not
that
Acquiescing in
.
as
Crouse, Bennett, Smith & Co.
tell
today
we
*
of
as
C. Luitweiler after
Cardozo,
with Bank of New York, has be¬
come associated with
Pfiugfelder,
men
policy today: It is just this: "We
must "bargain
*'
partnership
date
.demanding
do
statement, yet
the employer he
in good faith" with
representatives chosen by his employees; we deny the individual
employees the free right to select
those they wish to represent them
and make it possible for an or¬
ganized minority of employees to
coerce and intimidate others into
; the
„
where
resentatives
We may in a sentence state our
rights of
some men are submitted to the
test of liberty, and the rights of
'others to the test of power."
5
,
sition
_
:
to
Dan forth
van
ernment of laws if the
►,
-
a
reflected" in
gaining in good faith, and by
hardly keep from grin¬
can
be
employer and employee in
exciting,
seems
that
of the great
sense
Right
ning."';''.', ,;.v'// -7.>
ago
"We cannot maintain
;
•
common
such revisions of law
always fight-
are
;
....
youth it
our
Might
'
v
will
;
down.
Marie
cember 6th. J.
|!
Pflugfelder, Bamplon
Stock
dowp
body ' of, American working
been
.
of the New York
know, of,
sound
Right is always nearly winning,
permit might to overpower right.
-
hard
ing
returning soldiers if we
our
has
the courts.
not rebuild an
for
that Act
as
"Might and right
cannot progress, can¬
we
least
construed by
the
nothing in the past
history of labor-industry relations
comparable to the present situa¬
tion. We can but hope that the
way:,-v;■/7/7.;'7...7 .77.7/
It should be apparent to every¬
that
I
written
express
on
members
Exchange, will admit Willem
stroke is measured by the height
it attains on the up stroke,
;
;
L
is hard to maintain. Clarence Day,
in a little verse summarized it this
1
one
at
or
Company
The
strike.
;
;
the distance it travels
Changes
Bendix, Luitweiler & Co., 52
.Wall
Street,. New. .York
City,
so
labor, of nothing so
threatening in its portent, for the
pendulum inevitably swings and
contract,—a contract entered into
as
required by the Wagner Act
/-7The only way open to the
unions to force the Copper Company to comply with the deci-
'
an
nothing
of American
.man
in violation of
*
conceive of
can
ut¬
terly opposed to the true interests
that .fight and have
said to him "you may not work
unless
you - belong
to and pay
tribute to that union .which,» by
whatever means, has secured the
right to represent the employees
of a particular company or indus¬
try." Yet we continue to recognize
the right to strike even when it is
every
wage domestic
warfare, to employ force to obtain
compliance with their demands.;
*
77 '••7
work
[. 'given the right to
'
I
tion of the right of every, man to
or refrain from working as
he elected. We have now denied
f the perfectly normal exercise of a
'
might/ shall • prevail,—except in
'"7"' "7\
earning' the U. S. A."
and
•
/In early days the right to strike
questioned On the premise
that it constituted a conspiracy.
It was justified solely in recogni¬
Are Strikes ari Exercise of Right?
I
<■
wages
-
was
t
4
2780-
of
SOUTHERN RAILWAY COMPANY
By Ernest E. Norris
President.
.
THE COMMERCIAL & FIMANCIAE CHEQNICEE
2790
IW—
r-
—
;
,
n..,,
""
■
■■
Thursday, December 6; 1945
,
;
^
-
of New Security Flotat ions
Calendar
■
.
■
1
.
to be offered through an Underwriter.
Details—See issue of. Nov. ,29.
Offering—The price to the public is $4.50
per share.
Application has. been made by
the corporation to list: cm the New York
Curb Exchange 350,000 shares of its com¬
mon stock which ~is
presently issued and
outstanding and application: has been made
to
list on
the Curh 150,000additional
shares to be sold under this prospectus. ;
Underwriter — George F.
Breen, New
entered into an
are
NEW FILINGS
••
-Urt"'-•
registration
twenty
whose
Issues-
statements were filedless than
grouped sceordint i to t»ljj
registration statements will
normal, course become effective, w*
loss accelerated at the discretion of the
4sr» ago,
on.
which:
in
SKO.
•
BRUNNER
;
WARREN CO.'on Nov. 19 filed a
registration statement for .30,000 shares
$4.50 cumulative preferred stock, no par
D.
S.
.value.
.■
•
' —. >.■
Details—Sec issue of Nov. 22.
will he
Offering—The price to the public
filed by amendments
Underwriters—First
Boston
underwriting
heads the
group.
PRESSED STEEL CAR CO.,
filed
19
INDUSTRIES,, INC.. on Nov.
cumula¬
tive convertible preferred shares, par $25.
; Details—See issue of Nov. 29.
Y
Offering—The price to the public will be
filed by amendment..
Y.
INC., on NOV.
registration" statement for 85,955
% cumulative convertible pre¬
a.
series A, par $50.
ferred stock,
Co.,
preferred at the rate of
one share of preferred for each 11 shares
of common held of record at the close of
10,
Dec.
Subscription
1945.
fights are exercisable on or before Dec.
21; 1945, at $50 per share.
The under¬
writers will purchase from the company
such share of preferred stock as are not
subscribed for and will offer them to the
public, at. $50 per share.
c <
Underwriters—Kuhn, iLoeb & Co. heads
the underwriting group.
19-filed
500
Nov.
registration* statement for 256,of common stock, par $10.
a
shares
of Nov. 29,
Details—See issue
Cooley
R.
Co.,
&
Inc„
filed
price to be filed by amendment.
Each
shareholder will be entitled to, subscribe to
1.9 shares'for each share of outstanding
the
public at $25 per share all of the 256,500
shares not subscribed lor by stockholders,
except as to certain shares offered by
First Boston Corp., and Coffin & Burr, Inc.,
to minority stockholders of the four trans¬
feror mills participating in the Maine Mills
plan. The First Boston Corp. and Coffin Ss
Burr, Inc.,
together own individually a
majority of the capital stock of Bates as
well as of the following four mills: An¬
droscoggin Mills, Edwards Manufacturing
Co.,
Hill Manufacturing: Co;
and York
Manufacturing Cp.
The First Boston and
Coffin & Burr are offering an undetermined
number of shares of common stock out of
the shares
which as underwriters they
have agreed to purchase from the com¬
pany to the minority stockholders of the
four
underwriters will offer to
The
mills
above
named
ticipating
in
the'MAhae
which
mills
are
par¬
The
plan.,
Maine mills plan, provides for the acquisi¬
certain
other
Under the
tractors
or
change
a
of
assets
named.
the
four
•
market,
Offering—At
I
Syndicate, Min¬
T
■- >' ■■
.1;
minority holdings of stock in the
mills.
—
First Boston Corp. and
Coffin "& Burr, Inc., head the underwriting
,
Underwriters
group.1
■■
•;
filed
21
Nov.
NATIONAL
Nov.
DAIRY
PRODUCTS
CORP.
2Q filed "a
registration statement
for $50,000,000 2%% debentures due Dec.
on
1,
and Lehman Brothers head the underwrit¬
which
ing
group,
100
underwriters.
will include
more
Nov.
filed
20
a registration statement for
stock, without par value, the num¬
common
ber of shares to be filed by amendment.
Details—See issue of Nov. 29.
.
the
a
price
v: ■
;
is the prin¬
Co.
/;YvYY-\:.Y
POWER & LIGHT CO. oh
Nov. 23 filed a registration, statement Tor
100,000 shares of preferred stock, par $100;
The dividend rate will be filed by amend¬
■
■'.
•
Offering—Central Power & Light Co.,
Mass., proposes to offer the holders of its
7fo
and 6%
preferred stock an oppor¬
tunity to exchange their shares for share?
ne#" Texas
on
a
share for
the
in'connection
with
the
sale
at
competitive bidding.
It is expected the
exchange offer will be in effect for about
ten days and that the shares of the old
preferred stock not exchanged will be re¬
deemed on Feb. 1, 1946, at $120 per share
accrued dividends, in the case of the
preferred, and at $110 per share and
dividends in the case of the 6%
Underwriters—Shields & Co. head the
underwriting group.
'YYYYY'''
Registration Statement No. 2-6026. Form
C-3. (11-28-45).
' /Y Y Y—••
filed
a
the
Commission's
competi¬
NICKEL
BATTERY
CADMIUM
CORP.
filed a registration statement
shares of capital stock, par $10.
for 35,000
will
filed
JUICE
GRAPE
CO.
on
Nov.
23
registration statement for 20,392.8
preferred stock, par $100.,
a
shares of second
Details—See issue of Nov. 29.
at
$100
without
.
any discount or commission.
Navajo
it will purchase the unsubscribed
states
shares
investment, and not for distribution to
the public.
for
Underwriters
— Eastman,
'Dillon & Co.
underwriting group.
v
Registration Statement No. 2-6027- Form
S-l.
(11-28-45).
,
Underwriters—None
mentioned.
heads
SATURDAY, DEC. 15
STATE
Nov.
on
CORP.
registration statement
STREET
26
filed
INVESTMENT
a
tion
123,411 shares (additional) of no par
stock, and stock purchase war¬
rants entitling the bearers to subscribe in
the aggregate to said 123,411 shares of
statement
on
statement
Nov.
for
AIR
21
500,000
filed
.
a
shares
registration
of
common
Stock, par 10 cents, of which 150,000 shares
a
registrar
first mort¬
Avenue,
Business—Public
utility.
interest
Seattle,
J;"'.
.
y
bank
proceeds will be ap¬
plied toward {he redemption at 102 V2 of
$4,678,250 .first and refunding mortgage
bonds, 5 %' series A, due Oct. %
1954,
which the company proposes to call fox
redemption on April 1, 1946. The company
will supplement funds necessary to pay off
the
bonds
and
accrued
interest
from
— Initial
offering of 123,411
expected to be made on or about
24, 1945, through the issuance oi
stock purchase warrants to stockholder?.
Underwriters—None.
'
■.
'
Dec.
.
net
registration
a
shares of
common
shares; of
$100
and
bonds.
H8.000
Of
5%
Underwriters
for" 63,000
statement
cumulative -preferred,
the
common
are
issued
par
first
stock
and
are
mortgage
registered,
outstanding;
29.
Offering—The price
public will be
b" amendment.
•
to the
S-l,
(11-28-45).
of
TUESDAY, DEC. 18
GULF PUBLIC
filed
a
SERVICE CO., INC., has
for 312,500
common
stock
($4 par).
The
issued and are being sold by
registration
statement
stockholders.
share
one
shares of
of
prior preferred and
for each share of
,(>
*
Underwriters—None
"■*:
mentioned.
;
AMPAL-AMERICAN PALESTINE TRAD¬
ING
CORP.
Oct.; 3 filed
on
registration
a
statement for 400,000 shares of 4% cumul¬
ative preferred non-voting shares.
Y?«
Details—See Issue of Oct. 11.
Offering—The price to
the
public j*.
,
Corp.
.
$5,50
No. 2-6031. Form
.Y,
share.
per
Underwriters—The
shares
will
be
stock, par $1.
common
Address— Parks
Metropolitan
for
/
owned,
and
to
shares
1.75
for
each
share.
a
of
Parks
bonds duo
mortgage
.
Invited—Bids
bonds
will
Broad
St.,
RST
be
received
1800,; 15
York up to 11:30 a.fb.
11, the successful, bidder to.
^
CABOT
Room
at
the.
of
purchase
New
Dec.
on
for
specify the interest/ rate,
'
v.1
YELLOWKNIFE
GOLD
MINES,
LTD., on Nov, 13 filed a registration state¬
ment for 1,000,000 shares of common stocjt;
par $1.
;
■'
the
share
CORPY
ELECTRIC
registration'statement
a
1, 1975.
Bids
Air
The offering price is
Details—See
.
.
v
and
.
Details—See issue of Nov. 22.
stockholders
of Parks. Air College, Inc., on the basis of
College then owned.
filed
9
$56,929,000 first
Nov.
i
.
Nov.
on
Airport,
'
NIAGARA
BUFFALO
SALES & SERVICE,
registration statement for
a
East SW Louis, 111.
$3.27
sold
through the efforts of the directors
employees of the corporation.
457,020 shares of
then
two
con¬
.«•
WEDNESDAY, DEC. 19
one
the
on
common
vertible preference.*
PARKS AIRCRAFT
issue of Nov. 22.
'
Offering—The price to the public Is 3d1
share. ,-■/ •;
.5* v
Underwriters—John
William "Langs " isr:
named principal Underwriter,
"
,
Proceeds—The purpose of the issue is to
cents per
finance ythe further development of a sales
and/service business for, the personal type
airplane," which, is a new enterprise for the
CAMDEN FORGE CO. on Oct. 59 filed >».
registration statement for 177,310 shares of
corporation. The corporation has a distrib¬
utorship contract for "Ercoupe."
stock
is
—
being
No
tered
of
,Registration Statement No. 2;6032. Forth
8-12;>(11*30-45). ■
^
V
.
ELECTRONIC
filed
for
100,000
shares
N.
Y.
'V
New1
'
.
a
stock:
common
St.,
<.'r
'
■'
Proceeds—General
share,
purposes,
Rice &
.
\
;
(12-3-45).
a
firm
commitment. to
is
expressed
in
-•
,
remaining 195,000 shares are to he
purchased by the company geologist, offi¬
cials and employees.
./.
v
"
.
SUNDAY, DEC. 23
FLEMING-HALL
MAREMONT
on
Underwriters—Floyd
to be offered
'
112-4-45).
25 filed
a
shares
cumulative
$20
Underwriters—Kebbon, McCormick & Co.,
Chicago.
Registration Statement No. 2-6035. Form
CO., INC.,
statement
Nov. 8.
.
-
D.
Cerf
Co.
heads
GENERAL INSTRUMENT CORP. on
bank loans, demand
and balance to working capital.
Proceeds—To pay off
S-l.
registration
the group.
by amendment.
notes
a
Offering—The stock will be offered In
units consisting of one share of preferred
and one share of common at $15 per unit.
automotive and hard¬
to public
filed
common, par $1.
Details—See issue of
Chi-
industries.
Offering—Price
31
150,000 shares 6%
cumulative
pre¬
ferred stock, par $10, and 150,000 shares of
Business—Manufactures and sells variety
ware
Oct.
.
TOBACCO
for
■
of steel parts used in
of
money;
offered
The
';
Address—1600 South Ashland Ave.,
terms
Shares not so acquired.^
generally to the public:.
Should the
option not be exorcised by !
Toronto Mines Finance, Ltd., the company:
itself will 'make the offering, as aforesaid.
be
will
Registration Statement ;No« 2-6033. Form
s-i.
Price
Canadian"
&
Co.,
into
480,000 ' shares
at :$1,23
per
has an option on 1,920,000
and
holders.
Corp., ■'■ Si¬
Colony
Co., Childs, Jeffries &
Thorndike, Coburn & Middlebrook, Grubbs,
Scott & Go., Hirsch & Co., and Irving J,
Linburn
'
at the same price.
The offering
to, be made among the shareholders of.
Ventures, Ltd., Frobisher, Ltd., \ and La >
Luz Mines, Ltd. (Canadian companies)
at
$l.a$ per share, and to Eureka stock¬
'
Underwriters—First
by
Se-
is
including payment of $150,000 bank loan.
mons,
'v: ■"
-.
shares
common
,/,■'
corporate
entered
purchase
-
stock, $10,
Offering—Preferred
-
filed
EUREKA CORP., LTD., on Sept. 28 filed
registration
statement
tot
2,595,000
has
Business—Manufactures
public address
amplifiers and public address and record¬
ing systems.
stock $5.
,
shares of common, par $1.
'.'-•'■■y-v
''
■'./. Details—See issue of Oct.
Offering—Toronto Mines Finance, Ltd.,
•
York,
;
by directors.
to be selected by Union
curities Corp. '
/■.:/..//
■-•/-/
has
all
outstanding common shares except4
Details—See issue of Nov. 1.
Underwriters—Names
will
be
70,000
,v
18th
shares owned
and constitute
amendment,
convertible pre¬
:pari/:::.:/,;/::/,v';
Address—4$ West
the
12 owned
v';
OF AMERICA
statement
cent cumulative
and
ferred
.$1
CORP.
registration
shares 55
The shares regis*'
by'
are:
Union Securities Corp.,
pany.
SATURDAY, DEO, 22
stock, par $1.
outstanding
common
underwriting — The
offered solely by the com¬
Underwriters
;
cago.
The underwriter will
common
basis of- 4 Va shares of common for: eaeh
Share fit convertible preference under Op¬
tion A.
Under Option B they May ex*
change convertible preference for f>riotpreferred and common stock-on. the basis
(11-29-45).
INC., has filed
.
Underwriters—The principal underwriter'
Address—New Iberia, La.
*•;_ c«s-eu & Co., Charlottesville, Va. I
Business—Operating public utility com¬
erwriter has agreed to purchase:
pany.
from the company 5,000 shares of commou i
Offering—The price to the public will
6,OOo shares of preferred and $500,000 ol *
be filed by amendment.
4%
first mortgage bonds, and has also
v..
Will he offered the privilege of exchanging
convertible, preference for
-
will be offered
being sold by Victor products Corp.
Details—ttee issue of Nov,
Offering—Under an exchange offer i tho'
holders of
convertible
preference - stock
heads the underwriting group.
Registration Statement
•
grounds
$\or
,
Securities
,
375,97.1 shares of common, .par $1.
Details—See issue Of Oct. 25,-
maturing
March
31;
in the amount of $2,Union
—
.
.,:.r
-
and
AUTOMOTIVE PRODUCTS,
for sale at competitive bidding and the
INC. has filed a registration statement for
names of the underwriters filed by amend¬
'$1,000,000 4% sinking fund debentures, due
ment.
•
Dec. 1, 1960.
Price to public to he offered
Registration Statement No. 2-6028. Form by amendment.
Underwriters—The bonds
.
AMERICAN BANTAM CAR CO. on Oct.
18 filed- a registration statement-for 83,547:
shares „of. prior preferred stock,, par
i
treasury funds.
Nov. 26
without par value, 6,000
$500,000 .4%
shares
on
i
'
'
650,000.
■
O'SULLIVAN RUBBER CORP.
loans
outstanding
.
.
proceeds
will
be
used,
to pay, at their principal
amount plus accrued interest, the corpora¬
tion's
a
v;
with other funds,
'
Proceeds—The
filed
Offering—The price to the public will be
Proceeds—The
•
■/
.
Offering—The price to the' public Will be
by amendment.
'
■
1
'
filed
shares
•s
CONDITIONING
Fourth
r-,.
of
STATES
$4,800,000
.
are
MONDAY, DEC. *0
for
Address—1511
■Wash,
given
to issuer's
Stockholders of record at the close of busi¬
ness on Dec. 15, 1945.
In addition 34,113
shares already issued on Aug. 22, 1944, to
be registered to permit the re-sale thereof
when and as reacquired by issuer,
be
certain
UNITED
CO. has filed
gage .'bonds due Jan. 1, 1976.
The
rate will be filed by amendment.
common
to
the
SEATTLE GAS
for
stock,
'*"■
■
■
16
by amendment.
.
Underwriters—The underwriting
headed, by: Otis & Co.
:
V:;'.
f
Nov,
on
filed
debentures, due Dec. 1, 1960.
Address—65 Broadway, New York, N. Y,
Business—A diversified, management in¬
vestment company of the closed-end'
type.
Offering-r-The price to the public will
be filed by amendment.
j:
;
;
It has been
organized to acquire the business of, and
the properties used or held for use in tho
sale and distribution of liquefied petroleum
the District of Columbia, and the liquefied
petroleum gas business. of i Suburban •' ,Gas
Co, which, properties are located ;JncNow
Jersey,
New v York
and
Pennsylvania.
Suburban will acquire the properties1 from
Phillips for $8,000,000 jn cash and $3;t.
000,000 of 15-year debentures.
Corporation has agreed to purchase all of
shares
--
-
;.t
^
'"vv"/
50.000 shares. "
;
Details—See issue of Nov. i3--
Paul.
;•
j
i
-j '
Allan P. Kirby,' 600,000 shares; Walter-
are
000 3%
'
(propane) under the trade name "Philgas" by, the 13 eastern retail districts of
Phillips^ Petroleum Co., located in eight
states on the North Atlantic Seaboard and
.
unsubscribed
■
gas
Offering—The 20,392.8 shares of second
preferred are being offered to the holders
of common stock, at the rate of two shares
of second preferred for each 15 shares of
common held, at $100 per share;
Navajo
the
;
$8,000,-
The corporation was in¬
corporated ;on Nov. 27, 1945.
WELCH
shares
CORP.
■
proceeds,
The balance of the net pro¬
be available for general cor¬
working capital.
„
shares,
the
net
porate 1 purposes,
the acquisition of the
propane gas in bulk storage tanks and for
The securities are
being offered, by the corporation,
amendment.
.*
(par $1).-
W.^Foskett, 50,Q00, and Eunice M. Oakes,
bdo .will; be paid to-Phillip® FetaNrieum.CfOm;,; /Business—Aircraft sales and service busi¬
of, the purchase price of the ness in tn« field of personal flying.
properties of the 13 eastern
Offering—The stock will be birered first
retail districts of the PhilgaS division of
to stockholders (except Parks Air College,
Phillips which will be acquired by the Inc.), on a basis, of three shares for each
ceeds
Offering—The price t0Nthe public is $10
per share.
• ;
Underwriters—None.
by
corporation.
of Nov. 29.
Details—See issue
filed
Proceeds—Of. the
arfe
pany as part
business and
23
.Nov.
on
be
/'•
INC. on Oct. 31
statement" for 125,00Q
statement .for ,700,000 shares
stock, par $1.
The shares are
Issued and outstanding and are being; sold
by certain stockholders. These stockholders:
general; shareholdings corp. has
filed a registration statement for
$2,650,*
S-4.
Offering—The prices to the public will
Underwriters—The shares will be offered
rule, and the names of under¬
writers will be filed by amendment.
_
Address—400 West Mount Pleasant Ave.,
per share.
is
-
>v<. ,t
■
AIRLINES,
registration
a
ALLEGHANY CORP.
Registration Statement No. 2-6030. Form
Livingston,. N. ::Jv;;
:?;^
Business—Will engage primarily in the
distribution of "Philgas," a fuel used for
purposes.'
under
'
493,155 shares of common
preferred.
-
Co.,
has
»s.-
•
registration
issued in
S-2. (11-29-45).
registration statement for $4,500,000
purchase the securities at the following
prices: bonds at 95%, preferred stock at;
$92 per share and common stock At $4,50:
&
CORP.
12-year AV*7c sinking fund debentures, due
Dec. 1, 1957, and
stock (par $1).
filed
underwriter,
GAS
to
■■.
of common
a
1946,
PROPANE
Underwriters
.
:
SUBURBAN
The
.
household, farm, commercial and industrial
sale
debentures.
and Kalman & Co., Inc., St.
"
.
Issues
Underwriters—R. H. Johnson & Co. heads
the underwriting
group.
i
; ": / -
sufficient amount of cash to redeem thfc
Unexchanged shares.
;
'
,
Underwriters—Brailsford & Co., Chicago,
will be used, either directly
or'through "a"subsidiary", to pay for rolling
mill equipment and a rolling mill site. Any
balance, plus treasury funds, will be used
to redeem, at par plus interest to date of
redemption, the 7% debenture bonds out¬
standing in the principal amount of 6,Q00,000 pesos. ($1,200,000) maturing Aug. 14,
//.■
•
per- share.
a
pre¬
accrued
tive bidding
the
shares
1957.
of
Details—See issue pf Nov. 8.
:
^ - '
Offering—Offering price to public, $1S
called. for
'•
The dividend rate
.preferred will be specified by
new
underwriters
and
American
of
of/ permanent magnet!}.;
exchange for preferred stock;
Net proceeds" from sale of $340,000 will
be
used for corporate purposes,
including ap¬
proximately $200,000 for "additional ma¬
chinery and equipment;
A further-offer¬
ing of debentures will'be made to provide
to and
1950, unless previously
sale
1
shares of-commote stock
redemption on Dec, 29,
1945,
the; opportunity to
exchange the
preferred at (he redemption "price of $2JJ
per share, i for; debentures,. with warrants;
at par,: with cash adjustments for accrued
dividend oii preferred and accrued interest
be
are * convertible
the
list
a
unknown
are
'Si,
ALASKA
filed
j-'
'
.
any
basis plus cash.
share
on
concern
from
;
v
: $340,000 >Of
debenture^
warrants, for cash sale to the public
price to be filed by amendment but
not less, than 102^.'
,;;
;
-...;
Proceeds—Part of the proposed issue will
not subscribed
purchased by the under¬
be
been
at
common
against
;
,
with
American pre¬
issued
er
.■
initially,: offering
of
*
YY
of : Mexican
wilT be
shares
received
ferred
IZ'M : 1
WEDNESDAY;DEC.
the
sale
'
■/Y
Dec. 31,
redeemed, into American common stock on
a
share.for share basis.
"
: "
Proceeds—A part of the proceeds to be
CENTRAL
of
>
mined
; Offering—The company: is offering to the
holders of its outstanding : shares of 6^
convertible
preferred stock,
which have
on
.
' r/YY
cipal .underwriter. "
and
rata basis;
pro
will
and
principal
con¬
for offering in the United States
price to be filed by amendment.
The
Offering-7-Holders of record of the out¬
standing common stock will be given the
right to subscribe to new common stock,
the record date, ratio and price all to be
by amendment.
Underwriters—Hallgarten
holders
including
will
public
the
to
a
preferred
,
Offering—The
be filed by amendment.
Underwriters—-Drexel &
,
on
shares
preferred* shares
and
at
than
METALLURGICAL CORP.
to
writers
filed
FANSTEEL
share
stock on
for
$7,000,000 first and refunding mort¬
bonds series B due Dec. 1, 1970. The
interest rate will be filed by amendment. '
Details—See issue of Nov. 29.
Offering
Offering—The price to the public will be
by amendment.
Underwriters—Goldman,
Sachs &
Co.
underlying
Business—Manufacture
products."-' 6-'
Mexican
registration statement
a
Details—See issue of Nov, 29.
Details—See issue of Nov. 29.
and
The
166,667 shares of 6% cumulative
preferred, par. 75 pesos, and 614,667 shares
gage
1970.
filed
a
of
for
common
SUNDAY, DEC.
0/;;
A.,
S.
registra--
a
below
present
whose registration statements
p«e filed
twenty days or more ago, but whose
offering dates have not .beendeter?
i.
Michigan'Avenue, Chi,
.
Address—6 North
-
American'pre¬
614,667 American com-,
ferred-shares
PHILADELPHIA TRANSPORTATION CO.
on
mills
stock for
; '
Offering—Company is offering 166,667
Mexican preferred shares at 75 pesos per
v..
.
neapolis, ■ Minn.
plan the original con¬
will offer to ex¬
four
chase warrantSi
166,667
metal
Underwriter—Investors
underwriters
certain number of shares of Bates
sist
registration statement for 3,000,000
a
,
tion by Bates or
its wholly-owned sub¬
sidiary, Bates Company, of the plants and
shares
mon-shares.
for
We
•
Js'
cago, 111.
Business—Maker
La Consolidada,
corporation, has filed
;'T.
1
*
,
.
purchase common stock;
shares ofcommonMpar $1),
reserved for exercise of common stock
pur¬
par 25 pesos.
'YY'YYYY;';:.'
:Address—Mexico City, Mexico.
: >/'-V
at a
stock.
of
name
statement
ferred
INC., on Nov. 21
shares of capital stock, no par value.
Details—See issue of Nov. 29.
/-/■;
for
.
tion
'
and..40,000
of common,
INVESTORS MUTUAL,
on
Offering—The new shares are being of¬
fered first to the company's stockholders
.
(11-29-45);'
,
with; warrants to
MONDAY, DEC. 17
Mexican
'-
Cohu.dc Torrey.
7%
MANUFACTURING CO.
BATES
>
DATES OF OFFERING
UNDETERMINED
v'
INDIANA , STEEL'' r PRODUCTS" CO.'-h
filed a. registration stateqafent ; fo< ,$l,000j000; "12-year 5% "> sinking •' fund debentures
THE CONSOLIDATED, INCORPORATED,
English
i
Details—See issue of Nov. 29.
shares of AVafi
oh
Geofge
Inc.,
and
principal underwriter.
\
to be
Offering—The price to the public is $7.7$
per share.
<
Underwriters—Mohawk Valley Investing
ment.-; "
Offering—The. company is offering to
holders of its common stock- the .85,955
named
>
.
■
is
Co.
registration statement for
a
the company and 84,996 shares
sold by certain stockholders.
Details—See Issue of Nov. 29.
Details—See issue of Nov. 29.
business
oh
&
Davis
Underwriters—Paul. H.
:
by
Corporation
Y■?■/, ^
;
shares of 4 Va
CO.
MANUFACTURING
S-L
WOODALL
shares- of. common--stock,, par $1.
Of the total 15,004 shares are to be sold
100,000
_
...
filed
21
Nov.
ADVANCE BAG & PAPER
CO.; INC., on Nov. 19 filed a registration
statement for 29,000 shares fit Ai}M% cumu¬
lative preferred .stock, par $100.
Details—See issue of Nov. 22.
;
k Offering—The
company is offering 20,*
202 shares of the, new preferred , in- ex¬
change to the' holders/ of the outstanding
20;202 shares of 7% and • 6% cumulative
preferred stocks' on -the basis of one share
of new for each share of 7% preferred and
one
share of new preferred and $7.50, in
cash for each share of 6% preferred.
In
addition, holders making the exchange^ will
receive a cash payment.
The underwriters
will purchase any shares'of new preferred
not issued in the exchange and the shares
of AV2 %
preferred "not required for ex¬
change.
„"
Underwriters—E. H. Rollins & Sons, Inc.,
/heads the underwriting group.
;
'
27 registered 100,000 shares of 5%
.
SATURDAY, PEC. B
SUNDAY, DEC. 16
,
,he named by- amend¬
'•••'. '
;
j
Registration Statement No.' 2-6029.'Form
ment.;,'
York, is named underwriter,
SOUTHERN
stockholders.
->■
.Underwriters—To
,.
.
j •
,,'Preceeds^The proceeds go*to thef Selling
'
agreement to purchase 58,-
000 shares of common from Victor Products
Corp,
'1'
•
par,
Oct.
registration statement for 60,00fr
convertible
preferred,
und
260,000
shares of common,
par $1.
The dividend rate on the pre¬
ferred will be filed by amendment.
Th»
common registered includes 100,000 shares,
reserved
for
issuance
upon
conversion
of
,
V;olume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4444
162
PENNSYLVANIA
the preferred.
The 160,000 shares of com¬
mon
stock is issued and outstanding and
J
scription
Details—See
>
issue
Offering—The
he' filed
1.
of Nov.
to
price
public
the
1 GENERAL
filed
28
of
*7 .50
of
issue
'
,
CORP.
to
Ga.,
4
capital stock,
Details—See
;-Jln.-
CO.
stockholders
that
4.
Oct.
filed
20,180
shares
at $10.25 per share;
shares
named.
jf
tive
be
filed
,;
Issue
of
'
fifed
$100
The
by
of
'
,
-
loaned
the
the
to
of
Products
In
Corp.
stock.
Federal's
100,000
The
shares
balance
of
of
to
as
& Co..
Stop
exchange
in
Inc..
Order
Dallas.
Texas.
of
Hearings—Stop
registration
should
statement
pended now pending before
•^Details—See issue of Nov. 22.
'
^Offering—The^ company is offering the
of its 31,525 shares of outstanding
5V!»%
cumulative preferred stock the op¬
portunity to exchange their shares of old
preferred for the new preferred stock on a
share-for-share basis plus cash payment.
The initial public offering prices will be
filed -by amendment. 4 1
y- ..•--•r*- y-Vo-y y::
^Underwriters—A, G. Becker & CO., Inc.,
be
sus¬
the SEC.
.
ROBERTS
filed
15
Nov.
of
stockholders
of
the
on*
22.
Nov.
4ya%
equipment
trust
certifi¬
,"v.
'
Details—See
The
from
ranges
price
average
\v
the
to
to
99
public
102.
given
Is
f4VY
r
Underwriters—S.
K. Cunningham, Inc.;
Pittsburgh, and John Nordman
Co., St.
jduis. Mo."*
':'u- .
.
is offering to its
Nov. 30, 1945, sub¬
subscribe at $40 per
basis
of
one
each four shares held.
.
-
share
new
•.'>
.
SIOUX
:
for
'
.
-
CITY
filed
9
$8,000,000
trust
of
be
may
;• ;
CO.
GAS
ELECTRIC
&
registration
a
CO.
are now under
the Allies ruling Ger¬
respects. Chiefly the United
States is seeking a modification of
the arrangement which requires
.unanimous agreement among this
Government, Russia, France and
Britain before any decisions can
be made by the Allied Control
some
Council
in
Berlin.
14 filed a,.registration statement for $!,200,000 first mortgage and co'latetal t"n<t
bonds due Oct. 1. 1975.
The interest rate
will be filed by amendment.
Details—See
issue
of
■
Offering—The price to the public will,be
filed by amendment,. *
.
•
.Underwriters—The bonds are to be of¬
fered
the
sale
for
at
competitive bidding
in
Germany. \
•; ;vv
<•'
Gen. George C. Marshall, the
President's special envoy to China,
-
and dividend
Bids
by amendment,
-
-
.-
Trust
Co.,
12
Wall
46
EST,
noon
bonds and the
the
interest
filed
CORP.
CREDIT
on
a
stock, $1 par,
and 40,000 shares of common
aqd 40,000 common stock purchase war¬
rants and 40,000 shares of common re¬
served for Issuance upon exercise of war¬
rants.
!.Y; YYY';;
issue
Details—See
of
22.
Nov.
will
of
be
per unit, a
of preferred
share
one
of
$30
stork
common
>:•••'•
■■■
(Underwriters—Walter
.
-}
$12.50
class
A
Oil
New
YY
N.
VIRGINIA
June
or
CANDIES,-INC., on
,
issue
Details—See
!
per
Is
Waddell
is
group
&
York.
Inc., New
Co.,
by
headed
of
shares
Texas,
Nov.
filed
16
on
registration statement for
4»/2%
cumulative con¬
stock par $100 per share.
a
shares
30,000
CORP.
SERVICE
LINEN
of
vertible preferred
:
issue
Details—See
Offering—The
of
22.
Nov.
offering, to
is
company
holders of its $5 cumulative preferred stock
and
cumulative
$7
to
tunity
shares
plus
a
on
a
the oppor¬
shares for the
share basis,
The price to the
preferred
exchange
new
United
LAKE
issue
shares
for
cash payment.
public is $103 ner share.
Evans
A.
&
PANTASOTE
common
issued
and
stock,
par
outstanding
a
shares
$1.
The shares are
and are being sold
issue
Details—See
{ Offering—The
heads
the
of
price
$5.75 per share.
Underwriters—Van
Nov.
22.
is
Noel
underwriting
&
Co.,
TELEPHONE
Nov.
on
9
filed
a
&
TELEGRAPH
registration
$75,000,000 40-year
bentures due Dec. 1, 1985.
ment
for
Underwriting—The
nished
names
state¬
23A%
de¬
will
be
fur¬
amendment.
The company pro¬
the bonds for sale at com¬
petitive bidding and will receive bids at
Room 2315, 195 Broadwav. New York, bei fore 11:30 a.m. on Dec, 10, 1945.
poses
by
to
offer
of
Company
holders
said
Common
of
registered
the
March
close
Dividend
holders
D.
terly
the
C.
Taj
be
and
Stock
Company
25, 1946.
mailed
Common
filed
share
orders
COPPER
a
Trust
of
Five
NO.
be
will
resolution adopted at
a
LTD,
Certificates
or
of
been
have
of
certain
being
Certificates,
will
be
and
and/or
the
shares
are
of
&
on
for
Nov.
Oct.
29
in¬
an
shares,
8.
number
through
offered
of
shares,
by
subscription
for
directors
of
sale
to
value of $10.
HANSON, Treasurer.
that
'
a
of
the
CARBON
Seventy-five cents
the outstanding
capital stock of this Corporation has
been declared, payable Jan. 1, 1946,
(75c)
Avenuo, New York 16, N. Y.
to
share
The regular quarterly dividend for
the
current
quarter
of Jl.18-)^ per
1, 1946 to
holders of record at the close of busi¬
Stock payable
been declared,
on
end divi-
ness
■
1945.
10,
The
j
.
4
The stock
v.
J
Treasurer
,
Wentworth Manufacturing
of&1.75
per
Company
share,
has
payable January 1, 1946 to holders of
record, at the close of business Decern-
E. F. Page
.
The Board of Directors of
.
.
regular quarterly dividend for
/ the current quarter
holders of
transfer books will remain open.
November 28, 1945
December 17, 1945.
7% SECOND PREFERRED STOCK
the Com¬
January 2, 1946 have
to respective
December
record
share
Dec. 6, 1945.
*4-75 series
per
a year
her 17, 1945.
"
.
twelve
.
.
share, payable December
31, 1945 to holders of record at the
close of business December 17, 1945.
e. i. du Pont de Nemours
& Company
.<
..
-
:
-
-vt*
and
the
$16.50
per
will
is
December 10, 1945.
and
a
GUARANTY TRUST COMPANY OF WNE YORK
New
terly
on
York,
December
Directors has
Board of
The
5,
declared
1945.
a
dividend of Three Dollars ($3.) per share
Capital Stock of this Company for the
endin?
December 31, 1945, payable on
stockholders of record at
January 2,
1946, to
the close of business
December 12, 1945..
MATTHEW T. MURRAY, JR., Secretary.
underwritten.
By
preferred
number
amendment
proposes
to
of
stock
common
filed
exchange
with
E.
McDERMOTT,
Secretary.
and
an
un¬
shares.
SEC
outstanding
company
274,085
shares
of
ferred
stock
shares
of
pany's
of
1
$6
preferred for new $4.25 pre¬
to the extent of 50,000
and
outstanding
common
to 5 V2.
preferred
for
The
Chesapeake and Ohio Railway Co.
quar¬
the
quarter
contemplated
& CO., INC., on
Sept. 10 filed
registration statement for 250,000 shares
cumulative
■
! '
;
WILSON
specified
-
W. F. RASKOB, Secretary
an
Plan.
not
be
under
Plan
Purchase
November 26, 1945.
1
com¬
stock probably on a ratio
A dividend for the
fourth quarter of 1945 of seventy-five
$25 par common stock will be paid Janu-. ,
ary 2, 1946, to stockholders of record at close of business
December 7, 1945. Transfer books will not close.'
"
"
cents per
share
/ '
.
of
cents
Checks will be mailed.
Secretary
December 4, 1945.
dividend
corporation
share
Purchase
November 19, 1945
The Board of Directors has declared.this day a
dividend of $1.12 ka a share on the outstanding
Preferred Stock, payable January 25, 1946, :to
stockholders of record at the close of business on
January 10,,. 1946; also $1.50 a share, as the
year end dividend for. 1945, on the outstand¬
ing Common Stock, payable December 14, 1945.
to stockholders of record at the close of business
Wilmington', Delaware:
a
one-half
(121/2c) per share on the out¬
standing common stock of the
Company, payable on Decem¬
ber 20, 1945 to stockholders
of record at the close of busi¬
ness
R.O.GILBERT
,
declared
.
COMMON STOCK
,
50 cents per
on
on
ROBERT W. WHITE, Vice-President
share, payable January
1946,
share
stockholders of record at the close
of business
stock
first preferred
per
of¬
at
the
offering price
addition, a total of 76,310
being offered to officers and
issue
g
CORPORATION
THE
Boardthe
of Directors
this (lay
declared
followinghas
dividends.
the Preferred Stock for the
on
war¬
the
public
Stock
for
value,
par
^CHEMICALS <f
Sons;
amendment
stockholders through
to
Management Stock
Underwriters—It
Certificates
'
able January 2,
mon
share
,
purchased
for
for each share of Common Stock of the
L. G.
quarter ending December 31, 1945 pay¬
dividend of 250 per
subscription warrants, the price and ratio
to be supplied
by amendment.
The shares
not
of
'
180 Madison
dend of 250 per share on the Common
Stock payable December 28, 1945 and a
;
.
one
quarterly dividend of 750
(1/4%)
Nov.
on
common
supplied
offered
shares
UNION CARBIDE
Common Dividend No. 145
A
_
issue
are
for
$5 per share, on the basis of two shares
of new Common Stock $5 Dar
AND
Common Dividend No. 144
.".r
..
statement
Offering—A
to .be
new
PLASTICS
1945. Transfer
19,
Preferred Dividend No. 159
22.
LINES, INC.,
Details—See
figure
for
value of $5
therefor..
Common Stock of the par value of
new
1945.
Company
$1
preferred stock,
Brown
determinate ,number
che
a
of
Issued
Certificates
JOHN
SI.
Stock
TEXTILES
Bank Note
on
par
CO.
plus $1.10 for
AIR
Common
of
Stock of the par
shall
such
Boston, Mass.
A. D. NICHOLAS, Secretary.
CORPORATION OF AMERICA
company is offering 40,the new preferred stock to
registration
a
$
each
Colony
Old
the
from
on
Common Stock of the par value of $10
are therefore urged to exchange
-
cents
mailed
Company,
Certificate
each
Holders
54
share
per
($5 Par), payable
31, 1945.
shares
or
Common
COMPANY
DIVIDEND
;
dividend
37 Vs$
the par value of $10 each is recognized,
for any purpose, until surrendered, and
CONSOLIDATED
HECLA
of
Stock,
Pursuant to
office.
AND
close
10, 1945, no Certificate representing
Capita]
suitable
the
the Stockholders' Meeting held on Juhfe
the
to
dividend
Common
on December
WILSON, Assistant Treasurer,
Broaaway, New York 5, N. Y.
CALUMET
I
the
at
January 15, 1946.
January 15, 1946 to holders of Common
Stock of record at the close of business
the
to
Capital
January
will
have
this
at
1946,
of
business
of
Preferred
who
therefor
books
checks
of
Stock,
the
on
2,
on
There also has been declared a quar¬
and
payable
Stock of record
Preferred
day
Common
Company,
on
4%
of business
this
on
Fifty Cents
share, being Dividend No. 132,
Capital
Stock
of
this
per
the
Dollar
the
at
28,' 1945.
declared
One
$1.00
the Cumulative Preferred
Series, has been declared
payable February 1, 1946 to holders of
share
Stock,
payable
:
.
WESTERN
filed
Employees'
PACIFIC
CO.
■
through underwriters
Company proposes to
unexchanged stock.
employees lit
group.
the
also
American
Broadway,
per: share. ; In
Alstyne.
($1.50)
on
&
ficers
'
(
public)
the
to
dividend
a
Checks will be mailed.
Co.,; and Robinson, Rohrbaugh & Lukens.
rants
by certain stockholders.
of
Board
A regular quarterly dividend of
per
GH3
Co.; Folger, Nolan & Co., Inc.;
Goodwyn & Olds; Mackall & Coe; Ferris,
Exnicios & Co., Ihc.; Robert C.
Jones &
Co.,
filed
9
100,000
for
statement
registration
of
CO. on Nov.
The
Philip Morris & Co. Ltd., inc.
February
for
profits
1945, to holders
Stock registered
30,
Capital
1945
Divi¬
A cash dividend of
V
LIGHT
Underwriters—Alex.
Lemon
net
New York, N. Y.
November 29,
Capital
Gil-
share.
per
any
books
payable
June
Preferred
;■
cumulative
new
being
Preferred
undivided
ended
the
on
share,
close of business December
A. BURGER, Secretary.
R
Unexchanged
$104
said
Auchincloss, Parker & Redpath; Johnston,
Inc., Atlanta, Ga. heads the group.
THE
share
redeem
par
Underwriters—Clement
v'7
the holders of its outstanding 40.000 shares
of $5 cumulative preferred stock on basis
old.
of
day
and
Company,
of
out
year
Stockholders of record at the
Books will remain open.
Offering—The
one
this
1946,
per
the
on
1945.
this
Dollars
,Y:
is
stock,
par value.
.
•
Details—See issue of Nov.
of
of
1,
the
($2.50;
94,
has
Two
of
statement for
without
of
PHILIP MORRIS"
•
'
MINES,
funds.
$4.25
zY "Call for
.
.
-y./
shares
Stock
*
registration statement for 40,000
of
No.
quarterly dividend of
declared on
a
of business December
of
York.
14 filed.a
the
J.
public ~-T*
165
capital
1945,
January 2; 1946, to
Underwriters—Willis.E. Burnside &: Co.
New
Cent3
dend
•
States
at
December 10,1945,
on
Patrick
Directors
dividend
a
and three-quarters per cent was
-Aug.
2.
Offering—The offering price to the pub¬
lic
is
60 Va
cents Canadian or
55
centt
their
share
-
-
-r^
of
$10., payable January
stoc K
,lbe Preferred Stock of this . Company,
13
Aug.
•
registration
Details—See
at
NATIONAL
On November 27,
one
par ).'
16.
the
to
Y.
a
(Canadian).
000
the'.'public
to
share.
Underwriters—The
Herrick,
22.
Nov.
price
Offering—The
$7.87y2
of
for
specify
for-' 113,468
;
'
Nov. 15
filed
a
registration statement for 79,228
shares
of
common
stock,
par
$1.
The
shares are issued and outstanding and are
being sold by certain stockholders.
LEE
up
bid
underwriter
WASHINGTON GAS
MARY
City,
on-
(no
Aug.
,
-
RED
filed
24
CO.
stock
price
Co.
Yorx,
the capital stock of
011
STEPHEN G. KENT, Secretary
can company
PREFERREd
Y'Y/rY'Y
OIL
issue
share.
per
Fifty
Checks
AMERICAN
.dividend: rate
statement
Underwriters-^-The
crease
Tellier &
principal under¬
York, is named
New
writer.
doing
Tellier,
F.
under the firm name of
business
Co
unit consisting
and one share
'■'■'■■■
Y.
Each
'Q
registration
220,000
Olfering—The offering price to the pub¬
lic
N.
10.
and 'the
.■
Offering—The
close of business
($0.05) per share
will be paid on December 20, 1045, to holders of
the Outstanding Capital Stock of the Calumet
and
Hecla
Consolidated
Copper Company
oi
record at the close of business December 8, 1945.
Bank " &
National
Street,
VALLEY-OSAGE
of
par
resigna¬
York, November 27,
of
Board
.
close
a
Company,
2, 1946, to stockholders of record
ATCHISON, TOPEKA AND
FE
RAILWAY
COMPANY
New
.
of
cents
(total
received at the Board
Dec.
rate
THE
A
on
purchase
l"5
cents
SANTA
Boston, November 29,
preferred stock shall
respectively.;:;
shares
registration statement for
40,000 shares 6 0? preferred stock, $25 par,
13
the
for
announced
dividend of 20
com¬
conference
news
extra
DIVIDEND NOTICES
on
rate
this
this,day de¬
quarterly dividend of
a
an
35 cents) per shure
Marshall's
Ambassador
of
4.
22.
Nov.
Commercial
Details—See
MANUFACTURERS
Nov.
of
Invited—Bids
at
filed
'
'
issue
and
Hurley from his China post.
at
mortgage
and
collateral
due 1975 j 38,000 shares
preferred stock, par $100,
shares of common stock, par
the securities will be
Room
<
at
Byron
series
Details—See
underwriters will be filed
of the
names
and
effort
of
Price's report on the possible fail¬
ure of American aims and policies
first
bonds
153,006
$12.50.
The interest
to
22.
No".
This
out
grows
this
at
The
many for a revision of the Pots¬
dam Declaration of Germany in
revision
clared
r
recently
confer¬
for
statement
ment
the
declared
way among
said' that
The President declined to.
The discus¬
news
finally
to
cumulative
and
Nov.
on
a
nations
is
be
had in China.
' ■.'
'•
v
at
preferred will be filed by amendment.
SERVICE
PUBLIC
MAINE
the
he'
November 29,1945
The Board of Directors has
job .would be to carry out
the policies which we've always
in¬
.
series
100.47.
as
of
it
as
3. Negotiations
YY
issue of July 19.
Offering—The price to the public of the
different
Nov.
„
company
record
scription warrants to
share
serial
cates.
registration statement
of capital stock, par $10.
issue
Offering—The
■
TOWING COMPANY on July
registration statement for $500,-
a
a
for 300,000 shares
Details—See
AMERICA
NORTH
OF
CO.
filed
300
underwriting group.
INSURANCE
on
11
efforts
ence..; .'
shares
order hear¬
ings to determine whether the effectiveness
holders
heads the
sion
being registered have heretofore been
Co., Inc.,
particularly
which
may
Truman
tion
later
a
cooperate for peace.
ad-
regis¬
oi
common
530.823
r
published.
They
yet to be worked out, although
very
date, the President
will discuss fully the international
Co..
an
One Wall Street, New York
.
basic
cooperate
world peace or that Rus¬
2. At
exchange
Bennett &
the sole underwriter
not
given
Mr.
fear,
he did not share any such fears.
acquisition of 54%
ol
the
policies will lead to war. He
emphatic in stating that
was
registrant
stockholders
will
Russia
sia's
share
not
de¬
a
toward
7.
June
Company
to
as
a
questioning reporter said
persons in the country hold,
that
a
sharea
990,793
shares
with
Steel
all
Bennett
stockholders.
certain
which
some
for various obligations of the registrant.
Underwriters '*—
Principal
underwritei
sold
stock is being
common
re¬
filed
31
May
questions
meetings
probably will leave for Chungking
Stalin, the President in three or four days and the in-
does
volves
stock
statement for 31,525
preferred stock, par
shares of common stock,
75,000
and
$1.
par
shares
1. He
-V
.
on
for
(par $1).
issue
issued to Bennett &
cumulative
of
'
•
•
to
answer
are
;
CO.
In
policy and machinery for Ger¬
vices, and at the same time
veloped the following points:
registered will be Issued to
litional
15
Nov.
OIL
control
stmptions
situation,
tered.
registration
a
shares
ex¬
by' its
Allied
expressed his views, according to
Associated Press Washington ad¬
it the outstanding stock of Seatex Oil Co.;
Inc.
In
addition,
150,000 of the shares
[nc., is
on
taken
not
statement
connection
for
"
CORP,
shares
stock
of
Federal
(Offering—The price to the public will
filed by amendment.
{Underwriters—A. G. Becker & Co., Inc.,
heads the underwriting group.
/.. v„
STORES
common
Rights
share.
per
in
might necessitate
many
share
one
Co.
revisions
Irving Trust
...
of himself, Prime Minister Attlee
.
be
HOWARD
Light
adequate to handle the job itself.
and Premier
Electric Bond. & Share Co.
take the number of shares
BANK
common
tn
rate
^
the
number
22.
Nov.
the
4
registered Benaett & Co., Inc., parent of Red Bank, will
receive 209,970 shares In return for a like
;
dividend
The
stock.
by amendment.
Details—See
$10
Offering—Of the
and
preferred
will
at
Details—See
sinking fund debentures due
15.000 shares of cumula-,
3%
1965
Dec.
Pennsylvania
new
&
'.
n't. ■'
•
*
\
■' '
iHAMMERMILL PAPER CO. on Nov. 16
fifed a registration statement for $5,000,000
1,
Power
Dec. 22.
agreed to
RED
-f
Dec.
held
be
the new stock on the
of
& Light common for each
registration
i
..Underwriters—None
record
of
share
''
be
may
Va
take
to
sold at any
time
within
year
at $10.50.
Additional
3,864 shares offered in exchange for all
outstanding
stock
and
assets of B.
A.
Proctor Co., Inc.
' v-;;'',
20-year
of
was
whether
offering
is
maining stockholders.
company
would be
offered to stockholders
unsubscribed
he
proportionate to its common holdings in
(46.56% Vand National has agreed
•
20
Nov.
President Truman, on Nov, 29, stated at a
press conference that
not in favor of meetings further among the
Big Three for
purposes of working out problems of, joint concern and felt that .if
the United Nations Organization works as it was intended to it would
to
27.
National
'■
/
holders
share.
a
Sept.
National
common.
National
has
Sept
on
$5.
par
of
issue
amendment
announced
its
pire
registration statement for 95,544
a
of
to
stock
V
'i
MANUFACTURING
filed
new
of
■
GRAY
28
agent.
•
shares
the
Power
fiscal
is
of
basis
| /Underwriters—General Finance Co., At¬
31'-
of
right to subscribe to
is
public
the
per share.
lanta;
entitling
issue
DIVIDEND NOTICES
Big-3 Meetings
•
Offerlng-^-National Power & Light Co. as
of all of the outstanding common
of Pennsylvania Power & Light Co.
is entitled to subscribe to 1,818,700 shares
4.
Oct.
price
President Not in Favor of Further
stock
Sept
on
CO.
shares of
1,818,700 sub¬
holder
;r
.
statement for 200,stock, par $5.
common
(Offering—The
•
,
SECURITIES
Details—See
■r
t
.
registration
a
shares
000
■
LIGHT
&
and
par
warrants
Details—See
Underwriters—Burr & Co. heads the un¬
■
no
purchase such sto.k. at $10
will
V
by amendment.
derwriting group.
1
stock,
common
POWER
registered 1,818,719
24
Sept.
on
foeing sold by certain stockholders.
2791'
on
H. F.
LOHMEYER, Secretary
INDEX
Bond Club of New York
"
Ippoints Committees
;Lee M. Limbert, Blyth
& Co.,
Com¬
1945-46.
"(Arrangements: T. Jerrold Bryce,
Clark, Dodge & Co., chairman;
&
Co.;
Alfred
Our Reporter's
J.
Railroad
Thors,
chairman; A.
Lazard, Freres &
Acheson,
Glen
y
& Co.
son,
•'
Go>
Thomas T. Coxon,
Corp.; and
Mellon Securi¬
Harold MacDou-
gall. vice-chairmen.
'
■
Globe Aircraft
Mfg. Com. & Pfd.
Pfd. & Com,
Bendix Helicopter
Lear Inc.
Pfd,
ESTABLISHED
Members N.
.
40
Telecoin
Clyde Porcelain Steel
Du Mont Laboratories
-
Corporation
Wilcox & Gay
' '
,
45
>
PHILADELPHIA ( TELEPHONE
.
YORK
NEW
STREET,
NASSAU
5
-
new yobk
1-576
General Public Utilities Corp,
^
MARKETS
Schoelikopf Hutton & Pomeroy
RALPH F. CARR & CO.
(Successor Company to
Associated Gas & Electric)
?4? When Issued
Common Stock
'
SPECIALISTS
50 Broad Street
H Amoved
AFFILIATE: CARL
Memorandum
New York 4,
•
MARKS & CO. Inc.
CHICAGO
We
.
-
-
Industrial Issues
.
For 32 Years
Est. 1956
Frederick C. Adams & Co.
Specialists In
.
New
England Unlisted Securities
24 FE0ERAL STREET,
on ike S% $100
pri.'erred $b:!i of a
Eng.aysd Company
New
RE 2-8700
NEW YORK 5
v
V.'..."*' \
■
QUOTATION BUREAU, Inc.
V
-
Established 1913
-
46 Front Street, New
1
;
•
York 4, N. Y.
Chicago
|||T::E X T 1 L E S.yyyy
San Francisco
-
esiaY.ished in 1862,
1944 Earn.
1944 Earn.
CO.
STREET, BOSTON 10, MASS.
BANK
-
or
*
call for Analysis
M.C'.P.
V-v
148
Northern
1897
Manufacturers electric
& hoists
New York S
Telephone COrtlandt 7-0744
Bell Teletype NY 1-886
Tel.
N.
State
St.,
CAP. 0425
Y.
Boston 9, Mass.
i
Teletype BS 259
:
Telephone
HAnover
2-7914
'
i
'
'
WANTED
.
DIVIDENDS:
1941, $ .35
1942,
1.20
1944,
$1.05
1945,
1.00
1943,"
1946,
1.20
.
(
BOUGHT
—
SOLD
Net current assets $13.56 per
Net booh value
20.63 "
sh.
REMER, MITCHELL &
208 So. La
"
upon
Blocks
request
Amos Treat & Co.
REITZEL, INC.
of Securities
Salle St., Chicago 4
BELL
■
WESTERN UNION
'
•
SYSTEM TELETYPE
CG-089
•
TELEPRINTER
40 Wall
QUOTED
RANdolph 3736
'
Circular
—
.25)
(1/10/46)
Current market to yield 7 %
W. T. BONN & CO.
REAL ESTATE
—
AND COMMON STOCKS
BONDS, PREFERRED
cranes
-
& Wesson
INDUSTRIAL
Engineering Works
Founded
Sunshine Consolidated
Radiator, Pfd.
—
LUMBER & TIMBER
Columbus Auto Parts
Pressurelube, Inc.
INSURANCE
—
Bell System Teletype BS-128
-
after
Specializing in Unlisted Securities
PUBLIC UTILITY
Broadway
from
incorporated 1923
Telephone Hubbard 3790
120
.£64.43
.
21.88
55
Recent Price:
Write
Smith
.
taxes-
*
WALTER J. CONNOLLY &
..
Earnings since 1939 rangs
(S12.82 to $57.33 a share
:•
U. S.
Bef. Taxes .
After Taxes
England Local Securities
24 FEDERAL
Tele. BOston 23
ARRIATIS
par
•
,
BOSTON 10
Established In 1922
Tel. HANcock 8715
Telephone:
new england
r
New Eug. Market
a
J-
NATIONAL
.New
•
Over-the-Counter Quotation Services
Y. Security Dealers Ass'n
120 BROADWAY,
Teletype NV 1^09
'
>
Ward & Co.
•
York 5, N. Y.
70 Pine Street, New
U. S. Air Conditioning
N.
specialize in all
Insurance and Bank Stocks
Securities with
Request
on
6. a. Saxton & Co., Inc.
Whitehall 4-4970
1-1288
BS 328
N.Y.
Dealers Only:
Memorandum Available For
NY/1"1287
Teletype
^
Hanover 2-7913
Public Utility. Stocks and Bonds
TEXTILE SECURITIES
FOREIGN SECURITIES
Members
New York
,
Investment Trust Issues
HO. INC.
r.ARL MARKS &
•
9, MASS.
BOSTON
r
Teletype
Teletype"
Mining
Airplane & Marine Instruments
BELL TELETYPE
.
Enterprise 6015
REctob 2-3609
Interstate
..
Membert New York Security Dealer* Association - ~;
,
7/
Telecommunications
Oklahoma
'■<
;
..incobtoratbd'
Securities
Foreign
;
•
Waltiiam Watch Co.
Finch
& Company
Kobbe, Gearhart
Hubbard <442
2-0050
HA. 2-8780
1-1S97
Haile Mines Inc.;
k
Telephone
Y.
Sardik's Inc.
Boston
;
N.
Keyes Fibre Co.
;
s-.y
i NY 1-971
1919
Security Dealers Ass'n
Teletroe
-
TELEPHONE
I 1
Y.
Exchange PI., N. Y. 5
Majestic Radio & Television
Appliances
Bendix Home
Helicopter
m. S. wlen & Co.
*■:
Intl Resist. 6%
Ironrite Ironer Com. &
Robert E. Broome;
co-chairmen;
Bendix
Majestic Radio
U. S. Finishing
Baltimore Porcelain Steel
Reynolds & Co.,
Frank A. Willard,
Cargo Transport
Gaumont-British "A"
Sachs & Co., and
Goldman,
-
Air
-x
Amalgamated Sugar
Artcraft
Public Service
Du Mont Laboratories
Kenneth Stephen-
Field Day: F.
■
& ties
Harximan Ripley
C. Hogate, Eu¬
P. Barry, Shields & Co.; and
Lloyd S. Gilmour, Eastman, Dillon
gene
W. Pressprich, Jr.,
Pressprich & Co.; and David
Skinner,
Publicity: William H. Long, Jr.,"
chairman; Kenneth
Co.; Reginald
L.
2708 and 2709.
Goldsmith, White, Weld
Eeness, First Boston Corporation;
William M. Rex, Clark, Dodge &
R. W.
\
.2789
dn pages
New England
Trading Markets in
Markets—Walter Whyte
Pennsylvania Securities Section
Fenn & Co.;
Co., 155? Montgomery Street,
Francisco, is in. New York
City calling on the dealers;
San
.2704
.. . . ..
Corner,.......2718
)
Says
Clar¬
&
Co.; C. Edward Grafmuller; W.
Fenton Johnston, Smith, Barney &
Co.; E. Fleetwood Dunstan, Bank¬
ers Trust
Co.; Max A. Hewitt,
Blyth ■& Co., Inc.; James J. , Lee,
Lee Higginson Corp.; George J.
E.
ence
Securities....
Tomorrow's
1 Jack S. - Strauss of 'J. S. Strauss
Department.
Listed Bond
Atherton & Co.
v
&
I. Mr. Gardner is office manager
for Schirmer,
«
in Wall Street.
..2714
...........
Securities Salesman's
Co.; Walter F. Blaine, Goldman,
Sachs * & Co.; W. Rufus .Brent,
Eastman, Dillon & Co.; Wm. H. M.
Fenn, Phelps,
Securities
Estate
Real
Emerson
..2704
Utility Securities.......
Public
KUhn, LoeJb & Co.,
2788
Governments
Reporter on
Our
-
Reception:
Notes
NSTA
J^S. Strauss Visitor
.....2710 C. Lee, Alf C. Lootz, W. Robert nership in the firm ort Jan. 1. Mr.
2704 Mason, Jr., and Edward P. Wyeth McCormick has been with them
Report. ;V..2775 to partnership in the firm on Jan. for some time in charge of the
Funds
Mutual
Kidder, Peabody
Shriver, Morgan
Stanley & Co.
BOSTON, MASS. — Mixter &
Co., 82 Devonshire Street, mem¬
bers of the New York and Boston
Stock
Exchanges,
wil
admit
James F. McCormick, Jr. to part¬
.
-
mittees for the year
Henry C. Brunie,
Schirmer, Alherton Go. James McCormick Jr.
To Admit Five Partners To Be Mixter Partner
BOSTON/ MASS. — Schirmer,
Co.,
50
Congress
Canadian Securities-..,
2715 Atherton '&
Dealer
Broker-Investment Recom- Street, members of the New York
and
Boston
Stock
Exchanges,
mendations and Literature .;.... .2706
Municipal News and Notes
f
2779 will admit John Gardner, Martin
Calendar of New
Inc., president of the Bond Club
of New York, announces the ap¬
pointment of the following
Stocks......-. .2712
Bookshelf.:....,:.'. .2764
Security Flotations. 2790
Man's
Business
" Page'
Insurance
and
Bank
H
""
V"
4
.
Thursday, December 6, 1945
FINANCIAL CHRONICLE
&
THE COMMERCIAL
2792
Hill, Thompson & Co., Inc.
Markets and
"WUX"
Situations for Dealers
120 Broadway,
Tel. REctor 2-2020
St., N* Y. 5
BO 9-4613
I
.*
(
■
V
t
New York 5
Tele. NY 1-2660
@FedFRASER