Full text of Commercial and Financial Chronicle : December 9, 1943, Vol. 158, No. 4236, Section 2

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Final

Edition

ESTABLISHED OVER 100

Reg. U.

Volume 158

Number 4236

New York, N.

The Financial Situation
It was,

of

is not

known, of

The earlier

how seemed in

Teheran
which

meetings in Cairo of the heads of the govern¬
Britain, the United States, and China/some¬
part at least, to avoid the anti-climax of the

discussions.

followed

At

them

all

contained i

pected which provided

a

the

events

pronouncement
element of the unex¬

an

certain dramatic touch.

It is diffi¬

cult to believe that this bald announcement of the fate in¬
tended for

Japan is likely to render that nation less ready
fight to the end, since it appears that little or nothing else

to

is left for it to do.

effectively
—or even

ably, it

The treatment prescribed would

that nation from the list of first class

erase

of second, third or fourth class powers.

/

quite

powers

Presum¬

believed that the Chinese were in need of some
tonic, and, of course, it may well be that such a con¬

such

was

summation would be far from unwelcome to Russia.':\

;.V

■

•;v-

.

Had it been otherwise not

(Continued

•

>

From

on

only China, but
; 7
'
/

2344)

page

aggravating inflation and checking
presented to the Senate
Committee, Mr Friedman contended that the tax deters the
taking of risk and stimulates the search for security.
He further

,

,

Washington
Ahead Of The News
By CARLISLE BARGERON

Sometime

circles when she
and the

was

Japs in the

shown in

same

boat

a

as

in

Republican

r.ewsreel

putting the Republicans
regards dislike of her husband. You

remember the story.

It was old at the time.she told it. It was to the
Marine wanting a Jap trophy was told to go out
in No Man's Land and yell "To hell with Hirohito."
The Japs would
stick up, their heads and he could<$>—
%——
effect that

then

a

shoot

young

"shake

the

velt."

"How could

I

Republicans?"

shoot

the

my

boy

fellow
said

was

'

Mrs. Roosevelt explained it was
husband's

more \

vital

favorite joke,

than

calling this
meet'

a

own

bullets,

war

Roosevelt

in

the

particular

that propaganda is

argue

Messrs.

to have asked.

her

dists who for their
reasons

of

got

nerves.

and

to

country."
;
Regarding the provision in the
House-approved bill to raise the
excess-profitsv tax from 90% to
95%, Mr. Friedman said that "this
would
not be an ^unreasonable
proposal if we had not, in 1941,
changed the sequence of deduct¬
ing the tax", adding that "as a
sound and realistic program, the
corporation income tax should be
deducted" before
excess
profits
tax" if the rate is raised to
As

ent

found the

Teheran.

matter of fact it was quite

revealing.
the
or

Mr. Roosevelt has from

event

at

the greatest of all events,
spectacular as to con¬

so

at

You

gather

that is supposed to be equivalent
to the- birth of civilization which

beginning considered it more
own personal war, or took place there.

less his

:

,

him

of

and

and he's do¬

thing,

reached

an

all-out

accord

at.

ing it.1,

He has called on the rest,
Moscow; now an all-out his¬
help him out and we've tory-making accord is reached by
the Big Three at the birthplace
responded right nobly.
'
V"_\
We've never liked the personali¬ of civilization.
zation of this war.
We all know
Always,
the
President
takes
of

us

to

<

that

if

happen members of his family along to be
in on the
history-making event.

anything were to

to Churchill, the war
would go right on. But he doesn't
think
that,
and
we
doubt
if
Churchill does.
In their thinking
it's a score to settle between them
to

him,

or

and Hitler.

Hitler

and

of

Mussolini

used




to

This

time

there

and

son-in-law

and

then

kins'

unrealistic

and

the

retained,

there

son

was

Elliott

John
was

se¬

of

rate

profits tax should

excess

be

and

the

invested

base should
4%."

not

be

raised,

to

Mr. Friedman

Finance

low¬

Boettinger
Harry Hop¬

They had an awfully
good time drinking vodka with
(Continued on page 2347)

the

that

Senate

Finance

Committee began consideration of
the bill on Nov. 29—Mr. Fried¬
man's statement to that committee

follows in full.

poration

income
tax
be
raised
to 50%. Such increase

from 40%

consider

the House
of the

were

Dec;

approved

was

Nov.

measure

body

post-war employment.

The stockholder who takes the ul¬

timate

is

risk

bondholder

penalized.
favored.

is

as

new

32%

to

declined

issues

stock

cor¬

3%

of

bond

new

from

issues.

The tax deters the taking of risk
and stimulates the search for se¬

curity.

What sort of America will

The

tax

small

busi¬

ness

in that
the

of

Our

Articles

1

Section

in

Profit-Sharing

and

Re¬

exceed

the

dividual

income

corporation

of

tax

income

50%.

A

tax

destroys
exemption of colleges and
hospitals.
In

both

Britain,

the

U.

S.

declined
tember

about
1939.

20%
In

stock

common

and

Great

bond

government

yields

since

Great

Sep¬

Britain

yields

declined

sympathetically about 28%. Stock
prices

rose.

States

common

But

in

the

United

stock

yields rose
24%. Stock prices fell. The Ameri¬
investor

reckless
tion

frightened

was

and

unreasonable

by

taxa¬

corporations. He took ref¬

on

in

bonds. Such tax policy
penalizes expanding plant through
uge

stock

issues.

Treasury proposals for raising
corporation income taxes shake
the

economic

country.

foundations

This

is

not

so

of

the

in Great

Britain. All the evil effects of

corporation
,n.

^

income

tax

our

sig-

are

.

,

.

nificantly absent in Great Britain
(Continued

on

page

2347)

Delaying Acceptance Of Renomination

According to Roger W. Babson, "there are three primary things
which apparently

business

interest

when

men

considering

1944."

"They are," he said, "POLITICS—the WAR—and BUSINESS." With
respect to the three, he had the following to say at the Conference
of Business Men held at the Hotel Astor in New York on Dec. 6.

Policy.

World Inflation:

will

tax

Until Assured Of Election

Trusts.

Anti-Trust

Treasury proposals, this

combined

Politics, War And Business in 1944
Sees Roosevelt

Special

consti¬

Babson Makes Forecast For

GENERAL CONTENTS

tirement

Under

tax

the

top of

on

double taxation.

severe

can

compelled

by

given in these columns

pps. 2206 & 2226;
mention was made

Employees

individual income

tutes

Tne

As

porate income tax rates rose from
about 13% in 1936 to 40% in 1042.

24, and details
passed by that

2,

item

jeopardize

may

loan. A corporation tax

war.

bill
on

which

ures

the tax

to shift from corporations to
partnerships. The tax deters effi¬
ciency. Increased costs of wages
mit increased reserves for war¬ and materials are
virtually paid
time depreciation; (b) Exempt am¬
by the Treasury. For the first
ortization of debt; (c) Permit re¬ half
of
1943, wages in
United
serves for economic transition
to States Steel rose
$75,000,000 and
peace; (d) Treat preferred stock Federal taxes fell $64,000,000.
dividends exactly like bond in¬
Taxes, are paid in cash.
But
terest*' (e)
Tax publicly-owned earnings are not in cash. High corcorporations competing with pri¬ poration taxes impair the liquidity I
vate enterprise, and (f) Shift the of
corporations. Since 1940, the
corporation
tax to
the British
tax

pri¬

will check

following recommendations on
corporation income tax: (a) Per¬

The

and

corresponding British normal in¬

corporate taxes will not con¬
trol,
but
aggravate
inflation.
Heavy
corporate
income
taxes

urged the Senate
to

banker

in

this create?

Committee

commercial

vate investor must gamble on pos¬
sible future unsound tax meas¬

an

The Treasury proposes that cor¬

the

War and Post-War.

Editorial
Page
Financial

Politics

News

...........;.....

.

..;

.

.......

Moody's. Bond Prices and Yields..

Con¬

.

.2341

1944

.2352

to

later

will

Mr. Wallace will not be

him.

re-nominated

for

vention

Washington Ahead of the

World

Demo¬

cratic

Regular Features
From

accept the Presidency of the new
Organization if it is offered

Situation............... .2341

The

be

dency.

than

cessor

usual and may

the

not

Byrd and

Trading.............2355

State
General

Review

of

Trade
.....

.2341

Carloadings,,;v,...2355

Weekly Engineering Construction.. .2353
November Totals,• • • -2352
"

Paperboard Industry Statistics..... .2355
Weekly Lumber Movement

......2353

Fertilizer Association Price Index.. .2354

if

he

is

Weekly Steel Review..........

2351

Moody's Daily Commodity Index

2352

but

ing

Non-Ferrous Metals Market.

Weekly Electric Output.'.
SEC

2354
.......

.2354
.2353

Report on Individuals'
Savings in Third Quarter,

Liquid
.2350

Federal Res. Oct. Business Indexes. .2351

son.

Cotton

Ginnings Prior to Nov. 14...2351

Living Costs Up in Sept.
Period

—

decid¬

to

2352

may

Roger W.

Babson

run

no

chance of be¬

ing defeated.
If

Mr.

Roosevelt

insist

after

the

upon

war

the

be, I am not prepared now to

The War Outlook

He is

absolutely de¬

will

but otherwise

forecast.

ac¬

termined to

is still fighting late in 1944
he is certain

re-election;

cept the nomi¬
nation.

even

Republicans have( a good chance
of winning the Presidency." As'to
who
the
Republican candidates

whether

Presidential

15-Oct. 15

of

moment

not

suc¬

ticket

Roosevelt runs,

and

the very

last

Democratic

suggestions

many

wait

will

until

or

Weekly Crude Oil Production

sure

of re-election,

before
Weekly Coal and Coke Output..... .2353

to

nominated

be

Vice-Presi¬

The

Mr.

like

would

the

include Byrnes,
Willkie.
Republicans are sure to get
a
majority of the new House of
Representatives and probably six
more Senators.
However, if Ger¬

un¬

Roosevelt

..........

Commodity Prices, Domestic.; Index .2353
Weekly

come

til August.

the

on

NYSE

Odd-Lot

for

As to who will be his

Items About Banks and Trust Cos...2356

Winnie

He used to shout

he would show him

program,
Mr.
that, if the "pres¬

.

At.
..versus
Quebec,, Churchill
and
back and Roosevelt reached an all-out plan,
forth across the ocean at Hitler and communicated it to Stalin; at
telling him he intended to kick his Casablanca .before they reached
pants off, and Hitler would taunt another pne; a few weeks ago Hull
him back.
He kept telling Hitler and Stalin in a perfectly epochal

that

Hitler.

is

quence

imagination, they meet

Stalin

a

unsound

90%

95%.

minimum

a

Friedman said

Churchill

Atlantic; at
Quebec; at Cairo

nant about it.
As

.

North

and now,
an

foundations

So

and
you should have heard the Repub¬
licans in Congress getting indig¬

Casablanca;

economic

of the

returned, meet at the Brenner Pass. There
empty-handed and by way of ex¬ would be an awful lot of propa¬
Our propagan¬
planation, said the Japs yelled ganda about it.
back at him: "To hell with Roose¬

Copy

a

266% to 199% as the corporation
tax rose from 24% to 40%. Therefore, a rising corporation tax is a
new risk against Jhe
borrower.
The

Treasury proposals for®
corporation income taxes fact

He

them.

that

said

basis after the

Mrs, Roosevelt aroused indignation

ago

statement

raising

■
•

as

a

Finance

ered

was done at either or both of these gather¬
ings, the observer obtains the impression that what used to
be termed "realpolitik," rather than the
vague and mean¬
ingless Atlantic Charter, was the guiding spirit both in Cairo
and in Teheran.

consulting economist,
employment.
In

post-war

not

But, whatever

^

York

capital

"Realpolitik"?

■

Price 60 Cents

1943

Treasury proposals for raising corporation income taxes fronv$40% to 50'% were criticized on Dec. 3 by Elisha M. Friedman, New liquidity ratio has declined from

was

and it is not reasonable for the

ments of Great

Y., Thursday, December 9,

It

done at these gatherings—
public to expect to be told
in any detail now what went on—but it would
appear that
the value of the
meeting as a morale builder within the vari¬
ous United Nations and as a
weapon with which to injure
morale in enemy countries must have almost vanished before
the gathering adjourned.
course,

what

anti-climax.

an

Office

Shake Nation's Iconomic Foundations: Friedman

finally made public concerning the conversations of the "big
three" in Iran would be in the nature of

Pat.

2 Sections-Section 2

Treasury Proposals For Railing Corporation Taxes

inevitable that any official statement

course,

S.

In

YEARS

a

does

candidate

he

run

strong

can

so

he

Vicethat

resign and

Winston Churchill,

of

course,

is

anxious that Mr. Roosevelt
be re-nominated and re-elected;
very

also

Stalin

is

inclined

to

agree

with him. Therefore, Mr. Churchill
may

not hurry the European cam-

(Continued

on

page

2348)

2342

THE COMMERCIAL &

reached

Production

of electricity drop¬
ped sharply' during the' Thanks¬
giving week ended Nov. 2.7th, to
4,403,342,000 kilowatt hours from
the all-time high of 4,513,299,000

,

view Committee of the Food Distribution Adminis¬

nouncement

reached the

about

ready for public an¬
that quantities of foods will be released
are

ing to

bring Government holdings into line
requirements—no small job.
"Within the next 30 days there will be news on
the following items being offered back to the trade:
some 520,000 cases of evaporated milk, 25,000*,000
pounds of canned pork and beans, 1,000,000 pounds
of soup powder, quantities of canned peas and
canned tomatoesr<in addition to those already an¬
nounced; some 655 •'tons lof raisins—this from Gov¬
ernment stocks and not from 1943 reservations;
cahned apples, about 2,000,000 pounds of dried eggs,
a
yet-to-be-determined amount of shell eggs, salted
spareribs, citrus concentrates and cotton ticking."
-—American Institute of Food Distribution, Inc.
The public is not permitted to have the full facts
about food, but such fragments of information as
these

strongly suggest why there
food items.

week ended Nov.

37.1%

of

152,400,000.

205

This

year, 76,618 cars more than
in the corresponding week in 1942

and

46,098

.North
re¬

ported to have been held for five

124.45%

Japan also will be expelled from

days, Nov. 22-26.
that

the

three

by violence and greed.

The aforesaid three great pow¬

The general statement also said

Allies

"have

no

mindful

ers,

of the

of the

enslavement

people of Korea,

are

deter¬

thought of territorial expansion"

mined

and will continue to persevere to
force the "unconditional surrender

shall

of

With these objects in view, the
three
Allies, in harmony with

Japan."

taken

Return of territories

from

Korea

were

The

China

text

was

given

and

a

free

the

communique

follows

as

in

United

President Roosevelt, Generalissimo

Chiang Kai-shek and Prime Min¬
ister Churchill, together with their
respective military and diplomatic
advisers, have completed a confer¬
ence

in North Africa.

The
The
was

Official

Communique

following general statement

issued:

The

several

military

missions

have agreed upon future
military

operations against Japan.
The three great Allies expressed
their resolve to bring unrelenting
pressure
against
their
brutal
enemies by sea, land and air. (As
issued at Washington the com¬

munique added: "This great
sure is already rising")

pres¬

The three great Allies are fight¬

ing this

war

to restrain and punish

the aggression of Japan.

They covet

no

selves and have

no

gain' for them¬
thought of ter¬

ritorial expansion.

It

their

is

that Japan
shall be stripped of all the islands
purpose

in the Pacific which she has seized
or

occupied since the beginning of
War in 1914, and

the first World

that all

the territories

Japan has
Chinese, such as
Manchuria, Formosa and the Pes¬
stolen

from

course

free

and

of

the

with

Korea

indepen¬

United

render

the

necessary

unconditional

to

conference

on

behalf

by

Admiral

was

the

of

United

William

States

D.

Winant, Ambassador Laurence A.
Steinhardt,

Lewis

Douglas

and




was

loadings

for

average

98.6

scheduled

this

week

at

of ingot and casting capa¬
against 99.5 last week and

a

for

production in the United
is

The

Lord

Brooke,

Sir

Andrew

representatives

Leathers,
Charles

Sir

Alan

Portal,

Cunningham,

Sir

Sir

John

Dill, Sir Hastings Ismay, General
Thomas

Riddell-Webster and

Sir Alexander

The

Chinese

among

is

week

indicated

at

1,-

730,700 net tons, against 1,734,200
tons last week and

1,686,700 tons

in the like 1942 week.
Civil
in

engineering

continental

the

short.,

;

construction

United

States. for

holiday, week- totaled

$36,523,000.

This, not including
construction by military engineers
abroad,;
contracts
outside
the
country
and
shipbuilding,
was
45% below the corresponding 1942

week, and compared with $68,931,000 reported by Engineering
News-Record
for
the
preceding
Public

week.

construction

was

as

State and

Federal

municipal work and

85%

construction

from

volume
to

year

brings

ago.

declined

1943

$2,885,384,000,

an

Current

earlier

lated

and

the

than

buying

consumer

be

gift

on

lines, the agency said, and reports
indicated that some items are al¬

booked up on current merchan¬
dise, with little possibility of ac¬
cepting new business for the re¬

mainder of this year.

others,

Cadogan.
mission

included,
Shang

General

the

week

ended

Lieutenant

General

Chou

and

Chih-

jou.. Generalissimo
was

accompanied

Chiang Kai-shek.

by

Kai-

Ma¬

and

Prof.

Frank D. Graham of
University
to
which
appeared in our Nov,
issue, page 2036.

Princeton
reference
18

Post-War Depression
In U. S. Avoidable
Frances Perkins States

compared with the like period last
year, according to the Federal Re¬
serve System.
Store-sales for the
four-week period ended Nov. 27th
were

15%, compared with last

up

year.

Department store sales in New
York City in

4th,

the week ended Dec,
5% larger than in the

were

Frances

Labor,

Perkins,

in

Secretary of
address in''Boston,

an

at the Charles Street Forum, On
Nov. 28,, declared that there would

not be and "need not be

a depres¬
said an As¬
sociated Press dispatch, from Bos¬
ton, the same day, which went

sion"

on

after

the

war,

to say:

The

Secretary explained a de¬
corresponding week of last year, pression resulted when "every line
according to a preliminary report of work, business and employ¬
issued by- the
Federal Reserve ment
shrinks
simultaneously."
Bank of New York.

week

ous

of

In the

previ¬
27th, sales
14%
in the like 1942 pe¬

ended

Nov.

this group of stores were

larger than
riod.

:

'

' 'J

Agriculture Department
mists

state

running

that- farm

about

28%

will

in

above

last

$18,000,000,000
Against these statistics,

1943.

the* economists

set

reports

pre¬

pared by the Agriculture Depart¬
ment and the Bureau of Labor
Statistics showing that

living costs
have increased about 10% during
the past year and are now at the
highest level since World War I.
Warning that the inflationary
gap between living costs and na¬
tional income is spreading rapidly,
the economists estimated national
income this year at $145,000,000,000—one-third greater than esti¬
this

civilian

ployers, trade unions and the
public.
/'

expenditures.

Of

total,

gen¬

eral

"For

is

about

earn

urged that every help be
by the government, erm-.

long pull after the im¬

a

econo¬

income

year, as compared with a nonfarm rise of 20% and that farm¬
ers

She

given

mediate
tion is

problem
in

terested

of

demobiliza¬

all those who

over

in¬

are

of work¬

the welfare

recognize that industrial prac¬
must be developed by pri¬
industry consciously to pre¬

ers

tices
vate

vent business declines and

unem¬

ployment," she said.
The United States Employment
will be of prime impor¬

Service

in

tance
an

the

jobs

Post-war

period

to bring workers

agency

as

and

together, Secretary Perkins

declared.

:
,

Murphy, Starling Retire
From Secret Service
Joseph

E.

Murphy,

Assistant

Chief of the United States Secret
Service since 1919, who more than

other

any

one

man

has

carried

personal

responsibility
for
the
safety of Presidents of the United
States, retired from active service
on

Nqv., 30n Mr.
old, r

years

Murphy is 65

'

The
announcement
issued
by.
Treasury
Department
also
Anticipating that the greatest monetary disturbances in Latin the
America will follow the war, Charles A. McQueen, Washington econ¬ said:
"Fordmost of his 45 years with
omist, says that these countries probably would consider a' threepoint stabilization program including conservation, end employment the Secret Service Mr. Murphy's
of accumulated gold and foreign credits.
The other points, he says, major assignment has been guard¬
would be sound measures; to sustain industry and productive effort ing or directing the protection of
in other regions, and participa-<£-—————
seven
Chief
»—-—
Executives,
from
tion in credits, if necessary, on ex¬
"All of the Latin American cur¬ Theodore Roosevelt to Franklin

ports that are of positive rehabil¬
itating value.
;
.

Mr.

McQueen, Assistant Devel¬

rency systems are based on gold,"
he says, in a paper published by
The

of

Monetary Standards Inquiry
York, "not in the sense

that

Coordinator

of

Inter-Ameri¬

New

the

gold

coins, circulate,

but in

Delano Roosevelt. Yet during this
period he figured prominently in
scores of counterfeiting and other
law

enforcement

including

that their paper money,

frauds

in American economic and finan¬

like that of the United States, has

"Mr.

cial affairs, emphasizes that in the
absence of official expressions the
program was conjectural.

a

can

Affairs, and

an

expert in Lat¬

Largely because of the material
and moral support of the program
of
"hemisphere solidarity" > im¬
plemented since 1940, Mr. Mc¬
Queen says Latin America has
been spared many of the trials of
other regions during the present

cause

Chiang

!

Nov.' 27th,

Program To Combat
Post-War Monetary Disturbances In Latin-Am.

"However it will be greatly af¬
fected by post war conditions, be¬

Hsuan-chen

nations,

,

Department store sales on a
country-wide basis were up 13%

Foresees Stabilization

Chen, Dr. Wang Chung-hui, ViceYang

study of the
of interna¬

between

conducted by the inquiry.;
Papers previously published were
by Amos* E. Taylor; Director of
the Bureau of Foreign and Dom¬
estic Commerce; E. E. Agger, New
Jersey's Commissioner of Bank¬
ing and Insurance (referred to in
our
issue of Oct. 14, page 1508),

stimu¬

usual

a

settlement

balances

being

sug¬

packages

approximately 25% of
construction the
population living on farms will
average of get about 13%, it was estimated.

Admiral

shek

mailed

mated
a

war.

dam

gift

that

the

British

Foreign Secretary Anthony

Eden,

week-end

gestion

At 99.3%, output

year ago.

the

tional

Favorable shopping weather
the

opment Director of the Office of

McCoy.

the

cadores, shall be restored to the
Republic of China.

99.3%

city,

attended

Leahy,
General George C. Marshall, Ad¬
miral Ernest J. King, General H.
H. Arnold, Lieutenant General B.
Somervell, Major General Edwin
M. Watson, Rear Admiral Wilson
Brown, Rear Admiral Ross McIntire, Harry Hopkins, W. Averell
Harriman, Ambassador John G.

were

Inc.

of Japan.

The

J. J.

averaged 16
to 19% above the like 1942 week,
according to Dun & Bradstreet,
over

contributing to

post-war

volume

trade

hemisphere. Mr. McQueen is
of the twelve economists who

are

mentum during the past week and
retail

sur¬

Supplementary Communique

Sir

This total

at

the serious and pro¬

operations

procure

Nations

Japan, will continue to

persevere in

A

of

same pe¬

38% lower than in the 1942 week

longed

A" press communique states that

due

dent.

war

Press Cairo advices:

in

become

those

also pledged.
of

that

under the

the corresponding week of the ten
preceding years.

all other territories which she has

taken

cars

riod two years ago.

further said that the three Allied leaders, together with their
military
diplomatic advisers had com-1
——

were

decrease of 62,-

was a

from the preceding week

cars

this

and

in

freight

the Association of American Rail¬
roads.

the

,

revenue

for the week ended Nov. 27th, to¬
taled 820,082 cars, according to

gained by aggression in the last 50 years. This was officially dis¬
closed on Dec. 1 in a joint communique issued in Cairo,
Egypt, which

meetings

.

205,600,000
149,800,000 a

meeting

one

.

Christmas shopping gained mo¬

for

Roosevelt, Prime Minister Churchill and Generalissimo
Chiang Kai-shek have agreed upon future military operations against
Japan and resolve to strip that country of all the territory she has

conference

to

Carloadings of

President

The

increase
total

an

Local distribution

37.2%

year ago.

U. §., Britain And China Reach Agreement On
War Against Japan At Cairo Conference,

a

28th,

kilowatt hours from

States

pleted

Insti¬

the year-ago

over

increased

Steel

Africa.

Electric

Inter-

an
a

as

place for those who manage the
currency systems of

47

This

of

"shortages" of

are

before, accord¬

the

was
16.9% above the ready running short, with replace¬
total - of
3,766,381,000. ments difficult. The unusual de¬
Consolidated Edison Co. of New mand at retail, meanwhile, was
reflected in wholesale trading and
York
reports system output of
209,100,000 kilowatt hours in the most wholesalers were reported

committee to

many

week,

Edison

Bank

autonomous

of

year-ago

with actual

.

the

tute.

It is the determination of the

to civilian channels.

materials.

power or

I

"Approximately 30 different programs are in
various stages of development by the Inventory Re¬
Several

As

military require¬
ments lessen civilian production
will be permitted to expand • to
take up, any slack in either man¬

general throughout the coun¬
try, but is particularly acute in the eastern seaboard

tration.

American

Novem-f'

ber, and projections indicate tnat' $61,391,000 for each
the absolute peak will be recorded weeks of the period.
this month.

and Domestic

advocates

Commerce,

leading components suggest

control.

international

,

of Foreign

Bureau

The Federal Reserve Board's revised index
high ground in October at a level of 145% above the

new

1935-1939 average.
Subseauent data on
a further
slight rise for

seems

and in the feeder cities behind the ports.

effective

at its wartime peak.

now

quantities of foods in danger of spoilage if
they are not moved.
Reduction in frozen point
values can be traced to the glut.
"Among items that are not improving with age
are butter, frozen cream and
eggs, as well as frozen
fruits and vegetables.
In addition, there are foods
on docks and under sheds without proper protec¬

areas

Mr; McQueen, former chief of the
Latin American Division of the

•

are

Situation

considerably in terms of gold, and
if this price were sustained by

Most of the heavy industries, showed declines during the Thanks¬
giving holiday week, but retail trade continued to climb as Christmas
shopping gained momentum. Industrial production is believed to be

''Nobody outside the Government can have accu¬
rate information about how much, but it is known

tion.

Thursday, December 9, 1943

The State CM Trade

Why Food Is Short
there

FINANCIAL CHRONICLE

He adds:

of its needs for markets and

because

world-wide money dis¬
aster would destroy buying power
a

in those markets.

sense

legal relationship

to

that

gold

is expressed in some more or less
terms. Latin America as

definite
a

whole

makes

moderate

use

of

silver

coins, all on a subsidiary
basis, Mr. McQueen says.
"There
silver

is

no

advocacy

of

although

standard,

sional isolated remarks

are

the

occa¬

heard

in the produciing

effect
done

that

for

countries to the
'something might be

silver,'." he states.

International
Mr.

bimetallism,

in

opinion, would
benefit silver producers in Latin
McQueen's

Amdrica

if

it

price of silver

meant

was

that

the

to be advanced

the

case.

V
Service

intimate

presidents to retire this
Edmund
Nov.

-

Murphy is the second vet¬

Secret

eran

investigation,
Teapot Dome oil

1

W.

Starling

after

29

retired

years

of

Col.

year.

with

on

the

White House Detail. Col. Starling
joined the Service in 1914, served
under Mr. Murphy, like Mr. Mur¬
phy accompanied President Wil¬
son

to

the

ference
pean

about

his

peace

later

arrangements

subsequent
and

headed
for

on

con¬

Euro¬

tour, and participated in the

protective
home

Versailles

and

the

seven

abroad.
White

years."

thrown

presidents
Col.

at

Starling

House

Detail

Volume

i

THE COMMERCIAL &

Number 4236

158

ABA Demands End To Government-Subsidized Lament Wishes Willkie Luck In

Competition Of Production Credit Associations
The

nation's

the

of

demand

elimination

the

for

banks

of

the

of Production Credit Asso¬

unfair Government subsidized competition

ciations, made possible by the income they enjoy on the $120,000,000
of Government capital subsidy, was. placed before Congress by the
American Bankers Association recently in four days of hearings held
by the Select Committee of the House Committee on

Agriculture to

investigate the activities of the f
Farm
Security
Administration.' Agriculture. "The subject goes
Representative Harold D. Cooley deeper than even this," he said,
of North Carolina presided over "because you have got to take the
the hearings as Chairman of the Farm Credit Administration and
Select Committee.

presentation for the banks
begun by Mr. F. G. Addison,

was

Jr.,
tee

Chairman of the Commit¬
Federal Legislation of the

as
on

it

make

'

The

an

independeht

Federal

the

like

agency

Board

Reserve

going to do a good

before you are

job. This is a vital matter to these
country bankers,"
Mr. Wiggins
concluded. "They are passing out

who read the ABA
of the picture and it just won't
position with respect
do.
We have got to help them.
to the Production Credit System,
We ask you gentlemen to have
as was announced in St. Louis on
this reexamination made with the
Association,

statement of

Nov.

11

in these

referred to

and

Production
its way as
L. M. Wiggins, President of the quickly as possible by paying for
the money it uses and eliminate
ABA.
The opening statement of
this unfair competition.
We are
the case of the banks was made
becoming disturbed _back home
by C. T. O'Neill, as Chairman of
about this whole ^business of the
columns—Nov. 25, page

final

f

the ABA

Subcommittee

Federal

of

idea

the

making

Credit

System

pay

Government doing so many

things

competition with us and mak¬

in

Legislation.

ing it difficult to get along."

Winant Named To

Arousing

3-Power

Republicans To Necessity Of Looking To Vital
Domestic Issues
Thomas

ington announced

W.

Lamont, Chairman of the Board of J. P. Morgan
& Co., Inc., in an article, "What a Capitalist Reads," in the Dec. 4
issue of "The Saturday Review of Literature," Christmas issue, com¬
ments favorably on Mr. Willkie's
book,' "One World," and says, "I
Mr.

wish

Willkie

could

have

equal luck in any effort'that he
Republican friends to the necessity

might conceive for arousing my
doing a real job on currents

of

domestic

vital

issues

:

which

they I might conceive for arousing my
seem to be leaving largely to the
Republican friends to the neces
Democrats."
sity of doing a real job on current
We quote below in part from vital domestic issues which they
Mr. Lamont's article:

his

"Upon
world
with

took

stops,

against

many

Verne's

Days,'

'Round

the

on

Willkie

Mr.

of

because

from

which

tour,

the
go

his

49

some

warm

his
days

on

minute,
almost

agreements, have served to show
right Mr. Willkie was.
He

how

be

to

one

of

the

few

notable individuals who early saw

the

that

future

of

the

say

that

it

no

policies

good for

us

ab¬

does

to yell at

taxation

to

as

inflation

anti-

and

for

questionable cur¬
rency-stabilization
ideas,
unless
we have something genuine to of¬
or

"I

have

heard

Republi¬

some

desperately anti-Adminis¬
tration, say they were against Mr.
cans,

presentation, Mr.

Mr.

competitor with
If you will
examine the law you will find
that this Government agency is
of

sidization

Government

not

a

money.

cooperative institution. .
we are "doing a disservice
to cooperative enterprise when we
let this masquerade as a coopera¬
a

I think

tive and don't do more about mak¬

ing it

cooperative.

a

"The

management of this busi¬

has demonstrated that it is a

ness

system that can stand on its own
feet. It should have paid $3,000,last

000

in., interest to

year

that has been set up

which

has

a

the

system

a

for ten years

with
success.
It

been

operating

degrees of
reexamination

varying
needs

is

Here

Government.

and

by

it

on

that you

do

President of the Tennessee Tax¬

Association, C. W. Bailey,
President of the First National

payers

Clarksville, Tenn., stated
that "if the farmers of a trade
area wish to operate a cooperative
and
make
production or other
agricultural
loans,
I have
no
quarrel with them and will ac¬
cept the challenge of competition
if the occasion demands, but I
cannot adjust my thoughts to a
conviction that it
is right and
Bank at
-

such a cooperative
permanently favored
capital from the Treasury of

proper

that

should

be

with

the United States on which it pays

return in the form of interest

no

otherwise

is

and

relieved

of

all

will be doing the co¬

operative effort of the country a
service."

for

testified

the

Ellis, Super¬
Moines,

intendent of Banking, Des

Iowa; Clyde D. Harris,

President,

Cape Girar¬
Haskell, Vice-

First National Bank,

Mo.;

C.

D.

President of the Nebraska Federa¬
Mr.

Wiggins

the

are

small

cited

figures

for

that

the

show

to

states

various

PCA's

making

not

to

loans

tion of County

Laurel,
Director

borrowers

Taxpayers Leagues,

Neb.; Wade R. Martin,
of Banking, Lincoln, Neb.;

(hut to the W. L. Smith, Vice-President and
larger borrowers, the average PCA
Cashier, First National Bank, Lake
loan for the country beirig $2,025.
""In all this period of^time," he Geneva, Wis.; Edmund W. Thomas,
said, "they have had 335,000 cus¬ President, First National Bank,
tomers, as I understand it, out of
the 6,000,000 farmers.
Comment¬

competitive practices, Mr.
Wiggins stated:
■
ing

on

don't think

"I
any

the

the PCA's have

to go out and shake
bushes with the taxpayer's

right

petitor when the competitor is
paying the tax. If the PCA's stand
on their own feet, as far as I am
concerned
they
can
shake the
bushes of their community to get
business. I will be shaking some

their business too."

bushes to get

Wiggins in appealing to the

committee to make a thorough re¬

of

examination

Credit System,

Production

the

said: "We are ask¬

ing you to reexamine the opera¬
tions of this whole system to see

found the answer
set this thing up ten
years ago and what changes should
be made in it to the end that it
whether
when

may

pay

you

you

be put on its own feet

its

own

way

and

become a
farmer - owned,
and

legitimate
real
farmer-operated cooperative."
He
tion

President,

Farmers

State

Adams, Minn., and L. C.

Bank,
Wright,

President, Security Bank, Black-

also

of

+he

asked
Farm

for

Credit Admin-




Security Dealers
Organize For War Loan
275

New

York

City

se¬

curity dealers and firms not mem¬
bers of any stock exchange, in¬
cluding specialists and over-the-

dealers, have been in¬
vited to join with the Banking &

counter

Investment

Division

of

the

War

Finance Committee for New York

War
Loan

effort that he

ecutive

Vice

President

of

the

Chemical Bank & Trust Co.,

and
Director of the Banking & Invest¬
ment
Division, met with these
dealers and heads of firms at the

Nov. 22 to

Bank

Building

The National Association of

with the

policies

had

he

sup¬

Yet
pos¬

of Loan campaigns.

part of the public press, the

every

Democrats

are

sentatives

must

tematically

in, then

for

a

I

crusade

sys¬

To such

policies.

respectfully
devote

Willkie

Mr.

more

development

the

of constructive

our repre¬

work

the

on

Committee.

Great Britain's member is William

Strang, British Under-Secretary
State, and Russia's representa¬
tive is Fedor Guseff, Soviet Am¬
of

bassador

don,

in

the

at

upon

conference

examine European

ing

in Lon¬

commission

decided

was

Moscow

Establish¬

Britain.

to

ment of this

order

to

questions aris¬

the war developed and to
joint recommendations to

as

make

the three Governments.
With respect to the new Ad¬
visory Council to the Allied Con¬

Commission for

trol

also

set

at

up

Italy, which
the Moscow

conference, the State Department
on Nov. 22 the appoint¬
ment of
Robert D.
Murphy as

announced

his

suggest
ef-

next

Murphy,

who
has
been
representative to the

American

French (™:

Committee

Liberation
tinue to
staff

in

of

National

of

Algiers, will
adviser

serve as an

con¬
the

on

Gen. Dwight D. Eisen¬
Allied
Commander-in-

hower,

Mediterranean

Chief

in

theater.

Succeeding him

the

as envoy
Committee will be

the French

to

Edwin C. Wilson.
Britain

Russia

and

the

and

French Committee will also name

representatives to the Italian Ad¬
visory Council.
The group will
deal
with
day-to-day questions
other than military preparations
will

and

recommendations

make

designed
to
coordinate
Allied
policy with regard to Italy.
The results of the Moscow con¬
ference
4

were

reported in

our

Nov.

issue, page 1799.

forts."

Manufacturers, in

,

statement filed

a

Senate Finance Committee, urged on Dec. 5

ernment bonds to

that

Government

corpora¬

concern

over

con¬

of special Gov¬

version of Treasury-financed war

provide for reconversion in the post-war period.
was
presented by J. Cheever Cowdin,

plants to peace-time production
brought a warning on Dec. 5 that

tions be allowed to set up reserve funds in the form

recommendation

changes-might result in
and inequitable impacts
upon an established industry."
In reporting this, an Associated
Press Washington dispatch in the

Chairman of the NAM Government Finance Committee and Chairman

speedy

of the Board of

Universal Pictures^
panies now engaged in war work.
Co., Inc., of Los Angeles.
"These
The
companies estimate it
following
regarding the
Association's
tax
recommenda¬ will
cost
$2,289,000,000 without
tions was reported in Washington taking into consideration renego¬

"terrific

advices of Dec. 5 to the New York

tiation

ther said:

"Herald

peace-time

the foregoing

$570 for each employee."
"These companies employ 3,987,-

E.

536 people.

contracting agencies have author¬
ized expenditure of $15,555,000,000

Tribune," from which also
information is taken.
With such reserves set up in

"

Government

bonds, the Treasury

would have the
now

it

use

of the money

when the Government needs

refunds

get

back

to

production.

This

It is obvious that they

will not be able to meet tremen¬

reconversion costs and

dous

begin

would be available to industry to

peace-time pro¬
duction and employment unless
they have the necessary funds

create the

available

immediately

the

of,

Mr.

jobs which all segments

people agree will be
most serious problem."
our

our

by the House. These were:
1. The provision to increase the
excess profits rate from 90 to 95%.
2.

The

provision to reduce the

credits with companies with more
than

$5,000,000

of

invested

cap¬

ital.

ous

porations to set up reserve funds
the form of a special issue of
Government bonds.
Corporations

in

such
deem

limited

in

tion," he said.

ment

destructive

to

many

companies and harmful to the

en¬

of

should

but

amount

the

against taxable
nation

be

permitted to purchase
bonds as they

desirable,

proposed increase in the
excess
profits tax;from 90% to
95% is an increase' beyond the
point of sound and effective taxa¬

would

be

Government

maximum

"The

give seri¬

consideration to allowing cor¬

should

be

credit

of

net income

the

war

these

needs such

as

employment

itation, for accelerated deprecia¬
tion, deferred maintenance, inven¬
tory adjustments and other 'busi¬
ness

Such

needs.

funds

should

permitted to be used for

not

be

the

payment of dividends.

stimulate

It would kill incen¬
encourage
and
waste
and
eventually

severe

unemployment."

Discussing post-war features of

conversion figures for 2,072 com-

include projects

the

and

Navy

Army,

Defense

approval of the anti¬
Mr. Berquist al¬
ready has urged some industrial
groups to do some
spade work
now instead
of waiting until the
With

trust

the

division,

end of the war.

resulted in a recom¬
"orderly liquida¬

His study

for

mendation

tion" of the Government-financed

"Quick
be

might readily

disposal

arranged by making necessary

price and term
Berquist added.

concessions," Mr.
...

through reconversion and rehabil¬

tive.

would

2,598 plants. The total does not
of less than $25,000 or the $2^,278,000,000 commit¬
ted for machine tool purchases by
in

plants by sale or lease.
Such a
method, he said, probably would
bonds bring "maximum dollar recovery."

the encourage¬

maximum

tire economy.
It

economist, shows that Government

10%. At the termi¬

of

proceeds would be used for post¬
of

Berquist,

to a

would become redeemable and the

war

of the problem by Fred
Justice Department

A study

Plant Cornoration.

...

"We recommend you

Mr. Cowdin

the

upon

termination of the war.

Tribune" fur¬

New York "Herald

is

to

promptly

Cowdin said. "In
post-war period these funds

most,"

organize for active the
bill, Mr. Cowdin revealed the
participation in forthcoming War results of a recent NAM survey on
on

States

Senate Group To Allow Corporations Now Proposed By
Up Post-War Res. In Special Govt. Bonds Federal Economist

To Set

cause

Reserve

United

Advisory

Reconversion Action

"We want to

in

of the

tive

European

NABS Urges

repeat our disap¬
furthering the sale of
Bonds during the next War proval of excessive profits, but in
our
drive. Joseph A. Bower, Ex¬
opinion an increase to 95%

State,

Federal

the separa¬

istration from the Department;

NYG

Some

any

have

expressed the oppo¬
sition of industry to two of the
proposals in the tax bill passed

well, Okla.

to get business from a com¬

money

Mr.

Gettysburg, Pa,; N. V. Torgerson,

Willkie could

equal luck in

The

who

ABA included: M. W.

deau,

wish Mr.

"I

Winant, Ambassador to
Britain, as the representa¬

Mr.

certain

candle

opening the eyes of the
public to the stupidity, the impos¬
sibility of isolationism. His cease¬
less public exhortations undoubt¬
edly
contributed
to
the over¬
whelming nature of the Senate
majority for the Moscow pacts.

taxes."
Others

a

G.

Great

in

ported President Roosevelt.
how could he or any of us

human

to him in

re-

management people to
its feet as a business
rather than as a subsidy. If you
study

put

as

has held

citizens

John

United States representative with
the personal rank of Ambassador.

..

our

Dec. 4 that

Willkie and all his works because

Wiggins,

of

on

President Roosevelt has appointed

was

fer ourselves..

on

the Russian

steppes and in the recent Moscow

chanced

to

me

the Administration for inadequate

developments, however,

the field of battle

for

It is simply a truism

solutely

80

unprecedented
praise- of things
Russian, including Marshal Stalin.
Later

Democrats.

Jules

criticism

and

leaving largely to the

in

World

every

met

to be

seem

return

Advisory Body

The State Department at Wash¬

sibly fail to support Lend-Lease;1
President of the world depends in no small meas¬ or the President's plans of war
Wiggins said:
ABA, is President of the Bank of ure upon relations between the strategy; or fail to have approved
"We come to present to you not
and
the
United the immediate measures that the
Hartsville, of Hartsville, S." C.; Soviet. Union
an
attack on cooperative enter¬
Undoubtedly Administration took in 1933 to re¬
Mr.
Addison,
also
referred to States of America.
prise but to point out that what
it
was
his
unique, round-the- lieve the grave situation arising
above, is President of the Security
is now masquerading under the
and
widened from depression and unemploy¬
Savings & Commercial Bank of world experience
name of a cooperative credit en¬
horizons
that
gave
Mr. Willkie ment?
Washington, D. C., and Mr. O'Neill
terprise has in it a certain element
such an effective wallop in his de¬
is Vice-President of the National
which
we
believe will,
"Yes, we Republicans, rank and
if un¬
Bank & Trust Co. of Charlottes¬ termination, to bring the Republi¬
checked and allowed to continue,
file, must do more than criticize.
can
Party into line for interna¬
ville, Va.
If we are to clear up the domestic
undermine and eventually destroy
tional cooperation.
No other one
difficulties
Speaking both as a banker and
that, according to
country banking. That is the sub¬
In closing the

-

Agri¬

on

Committee

Credit of the

cultural
on

2133. The
made by A.

argument was

2343

FINANCIAL CHRONICLE

"With

such

Government

reserves

use

help create the jobs

to

will
problems.
agree

be

"If there are
up

in

bonds, the Treasury

would have the
now

set

industry

of the money

when the Government needs

our

going to be enough

jobs to go around after the war
ends, we must begin preparing
them today.

tilities

cease

If

we

for

wait until hos¬

it will be too late,'*'

most.
In the post-war period
these funds would be available to Mr. Cowdin said.

it

people
most serious

which all segments of our

2344

THE COMMERCIAL &

FINANCIAL CHRONICLE

by the participants in these

The Financial Situation

Teheran conferences.

(Continued from first page)

possible for them to

Life Insurance Funds Active In

Was it
to

come

For

some
sort of
Burma, -Malaya, the Dutch Unless the Chinese are
understanding
ready
Indies, India and all the to build their own future which would make it possible
to work in close
rest must
cooperation
logically have been henceforth, it will • not be
with all factions in
promised their freedom—and mprely a problem of return¬
occupied
protection
from
aggressive ing their territory to them, countries, and depend upon
all factions to work smooth¬
exploiters.
China is needed but of standing as a guardian
to furnish a route to
Japan1 over their possessions to pro- ly together to a common end?
If in fact as well as in
and aid in
name,
crushing Japan— jtect them from exploitation,

American life insurance

Chinese

people

The other

is

of the world

are

The

task

that

properties
have

and of Great Britain and the

Great

number of questions of this

a

ly different category. More¬ a huge one in a military sense.
Russia
is
presumably That is obvious. The task of sort, much indeed has been
more interested in what the
accomplished. The events Of
keeping China free and unthe next, few months
attitude of the European pow¬
should
exploited may in the long run
throw a much better
ers toward China is to be than
light on
prove to be an even more
what

they

intend

the

do difficult undertaking.

to

have

long been more senti¬
mentally inclined toward the

The

Teheran

than

toward

may

exist¬

been

accomplished, but

that

see

than

has

values

companies

and

every

uations

"An

under

in

last

five

having

insurance

funds

the
aid

W.
Warren
Barbour
N. J.), died of coronary
thrombosis
on
Nov.
22
in
his

leading
to

panies.
hold

are

now

in

companies

the field

of

no

familiar

one

with

the

of world politics dur¬

.course

ing the past century.
Realism Is

r.

V

Encouraging

not

intended, to

be

particularly. Indeed, we con¬
fess to a feeling of
greater
confidence

somehow

the powers

another

one

realism.

in

But, of

when

dealing with

are

world

a

course, no

troublesome questions which

of

in¬

from

entirely unconsidered un¬
victory is won, but it

1938

foolish to

more

called

China

time, and there has
for

a

at

this

not been

good while past.

cliques, clans, and all
of

local

bound
which

least,
:

or

They

groups.

by
in

ancient
some

manner

are

customs

instances, at

are not either

admirable

conducive to progress.

we

face the facts

mit

that it is

not

If

must ad¬

we

altogether

the fault of the western
pow¬
ers,

of Japan either, that

or

China has not been left
molested to work out its

salvation
turies.

A

own

through the cen¬
large part of the ex¬

ploitation of China in
was

un¬

the past

permit them to interfere with

with

assistance

ing

corrupt

Chinese governments.
It may be
easy;1
ai:gue

that

entitled
and

even

thej^hinese

to

be

to

are

/backward,"
have"
hopelessly
a

Senate

unexpired

term

of

end

Harry Moore, who resigned to
Senator

bour

in

reelected

was

1940

Bar¬

for

releases

tivity

a

materials

tremendous

This

'

aid

or

of the leaders of the
fight
the House against the Admin¬
istration's food subsidy
program,
having called for its defeat in a

one

the

hand and the Russians

on

To

in

special
House
took

opening

debate

in

the

Nov. 18. / Mr.
Steagall
leading part in many im¬

on

a

portant pieces of legislation, hav¬

on

they could be

crying needs of the

situation

greater

has

that

coordination

activities

of

of

of

the

these

The

oowers.

issued

new

been

mighty
communique

from

Teheran

The

for

this

•

purpose.
is in the

announcement

of

and

terms,

could

much.
could

If

be

naturally,;

mean

full

little

or

coordination

as

sponsor of such measures
those which created the
Recon¬

struction

the

Finance

that

are

ahead if

Situations such

conditions continue in China
as

isting

Yugoslavia

they have been in the past, have




for

as

come

months

Federal

Deposit

Insurance

sponsored

by Mr. Steagall
as

the

that known

was

Glass-Steagall

enacted

in

June,

bank

bill,
amending

1933,

the Federal Reserve and Nat'onal
Bank

Acts; besides the deposit in¬
surance plan carried in the
GlassSteagall
measure,
it
embodied
Branch

Banking

provisions,

*

also

provisions divorcing Bank Affili¬

should

that

ex¬

in

-

;

Representatives! Ditter

on

'

■

.

part

under close

study

also

are

and

are

now

ortization
were

low

on
on

a

cost

homes

long-term,

am¬

plan.

The
companies
the pioneers of this

among

type of mortgage, writing it ex¬
tensively
before
the
Federal
Housing
Authority was
estab¬
lished.

One

life

alone

pany

has

$1,500,000,000

insurance
written

of

long

ortizing mortgages

com¬

nearly

term

am¬

small homes

on

the past 20
years, represent¬

which

company

$250,000,000
also holds

currently

of

some

FHA

holds

mortgages

$550,000,000 dwel-

Survey By Harper & Guriiss Of Cornell

Ithaca, N. Y., advices of Dec.<^-

to

the

is

New

York

"Herald

which the

Tri¬

foregoing

learned, it was also stated:
"The civilian standard of
living

train

plane

near a

Ditter,

who

Columbia,
first

was

a

killed

rides

Pa.

Mr
to

in 1932 and reelected to

other

consumer

were

Government

both

are

complete
Professors Har¬

and accurate, say
per

and Curtiss.

Actually, the in¬

tee.

and

Naval

He

was

Affairs subcommit¬

also

a

member of the

Appropriations Committee
was

three

Chairman of

times

elected

the export of much food
lend-lease. People with

the

civilian

sacrifice

much

about..'

economists.

have

we

soys

'Neither

they support the demands of

cer¬

tain organized, pressure groups for

higher incomes to

ease

their

joying

vances

sumer

experienced

ever

standard

of

his

living.'

"Consumers
ter than in

in

are

eating 20% bet¬

1939, according to these

the National
Repub- Government
figures;
non - food
Lean Congressional Committee. < items have
gone up 14%. With ex-

purchases

prising,

would

according

to

con¬

be

sur¬

Professors

Harper and Curtiss, in view of the
tremendous shift of production to

goods. Without doubt

using

of

reserves

we

have

manufac¬

tured products and raw materials.
Also

'production'

tion'

of" many

creased.

Rail

increased

and -'consump¬

services

and

has

in¬

travel

bus

has

enormously

although

auto travel is reduced.

war¬

of the most rapid ad¬

one

eating much

"A rise of 14% in non-food

the
do

through

in restaurants.

more

=

so

for

money in

their pockets are also

been

/eard

possible

people Jo, shift to the luxury foods.
bpen possible in spite of

ices.

they stand now, Govern¬
figures 'do not show much

it has

reserves,

made

This has

war

"As

F:

usingh|eed,;grain

dexes may not be correct, as
they
leave out many goods and serv¬
.

JV.

wpqther for crops, and by

actually hpen

available.

"This rise in the level of
living
that price indexes of the

Y

..

cellent

assumes

Navy Cornell

elected

and

goods and services

ment

■

States

now

In
5

of
was

Nov. 21iln -th'i crash of

Eouse

likewise

'/.:/;•.

according to a study of
Government reports on prices and incomes made
by Professors F. A.
Harper and W. M. Curtiss of Cornell University. This
better living,
it is explained, should not be confused
with higher
prices, but is in
terms of actual purchases of goods and
services.

ates, Creating Federal Open Mar¬
ket Committee
/•etc;

House

past

■'/,:

:

,

com¬

mort¬

building ac¬
by housing ing housing accommodations for
take the nearly 1,500,000 people. Another

use,

—

in the years

insured

The living standard of the
average civilian in the United
about one-sixth better than in
1939,

is

Corporation, bune/from

Corporation, the United States
Housing Authority and the Com¬

achieved, including Congress

accomplished.

FHA

will

time suffering.'
The official fig¬
of Russian
bases
for succeeding terms, was on a
inefficient and
spe¬ ures show 'that the so-called suf¬
corrupt rulers, American or British air
at¬ cial mission in connection with
if they choose.
fering has been in reverse, and
The fact is,
tack, a great deal would have his duties as a member of the the average citizen has been en¬
^however, that such a situation been

plainly and strongly invites
exploitation
and will do so

by the insurance
in

remaining 70% of nonfarm dwelling
mortgages held by
the
life companies,
the greater

and_ labor

could, of course, be even higher
modity Credit Corporation, i He,
the other in the
through purchase of goods with
European also helped draft the two
price additional
money savings of work¬
fighting: were poorly coordi¬ control acts. One of the most
ers, if more cars, radios, clothes,
notable of the measures
nated, if indeed
said to be coordinated at all.
One of the

is

was one

ing been

British and Americans

its

Committee and had been a mem¬
ber of the House for .29
years.
He

tions to

that the efforts of the

50%. of

type of home financ¬
of the,
companies

One

Banking and Currency

of the Axis

course,

of

com¬

.

ntensifying and coordinating

has

than

on

the House

Teheran about

bring about the defeat
more
quickly.
It
long been obvious, of

dollars

projects for which life insurance
g
g g
written on its own
Nov. 22 in the
George
companies have recently become P*an, and consisting; chiefly of
Washington University Hospital
a
leading source of funds."
at the age of
i.mortgages on small, homes."
70, was Chairman of
died

much

either Cairo

than

more

"Of the

over

forecast

now

experts.

holds
billion

a

more

aid.

gages.

companies

for The

has

panies

financing aid

expectation of increasing their aid
to home owners when the war's

in

of

billion dollars of the home mort¬

full six-year term. He was a
mem¬
form
principally
of
ber of the Senate's Naval
mortgage
Affairs.
The vague and idealis¬
Commerce, Manufactures, Public financing^ but greater participa¬
tion by the comnanies is expected
tic
tenets
in
the
Atlantic Buildings and Rules
Committees. in
direct ownership of
Charter are not
housing
Representative
Steagall,
who
likely to find

vaguest

enough to

the

alone

gages held

relatively

ment.

oerfected

of

the

to

become Governor.

the defeat of the Axis
powers
at the earliest
possible mo-*

regularly '■ accomplished
speaks of plans having been
the connivance and ac¬

tive

for

A.

The the efforts of -the United Na¬

Chinese people are
split into

returned

and

$50,000,000 of FHA mortgages. Ap¬
proximately 30% or well over a

of

financing

"Post-war

reelection in 1936 but

was

mortgages

family houses

newly interested in the field
has,
after only two
years, more than

housing
will
be
Barbour, who was 55 years
inevitably arise when
greatly aided by life insurance
the fighting is over:. It would old, was appointed to the Senate
companies. Most companies are
in December,
1931, to succeed the
be unwise to leave these mat¬
laying plans for expansion of ac¬
late Dwight W. Morrow.
He was
tivity in this direction with the
ters
defeated for

place in the final peace
formed man is likely to
sup¬
arrangements in any event.
pose
that what might be The
important thing now is to
termed the Chinese problem
get along with the war;'
can
possibly/be: so easily
It would be
wholly unrea¬
solved.
In a
very real sense sonable to demand
to know
there is no
s:ngle entity which
precisely what was done1 at
can
be

heart attack.

a

companies

FHA

assets in this

secure more

Mr.

would be far

critical

are many

the

mortgages, and another

pany

the

are now eager to
good home mortgages
than are
currently available. The
Institute also states:

(Rep., Pa.), in an airplane
crash,
and
of
Representative
Henry B. Steagall (Dem., Ala.),

must

til

What has been said here is

/

heartening. There

most

ter

the earliest possible moment
is

all

quarter

oc¬

for homes are
ing, to join the United States tainly the primary emphasis
very active in this
Washington home. His death fol¬
field today, according to the in¬
in a declaration which
ap¬ given to questions having to lowed within 24 hours the deaths
stitute, which says further that
pears to look toward a China do with winning the war at of Representative J. William Dit-

relatively although not neces¬
sarily wholly free from for¬
eign domination need surprise

fi¬

recent

FHA

all

four

to

of

FHA

one

of

company

of

result, life

of

sources

Several
new

a

insurance

mortgages on
large scale housing projects. One

these

in

life

Together

27%

one

53%

home owners."

.

(Hep.,

As

years.

in

the

One evidence of this is the
great increase of FHA
mortgages
held
by
life
insurance
com¬

holdings
dwelling

tripled

of

means.

a

life insurance

mortgages

light.

Senator

re¬

housing

increase has

enormous

curred

the

has been in the field of low
cost housing for families of
modest

ac¬

stimulation

of

years

effort is

the

anouncement

also quote:

we

"Most

,

on

to

the

———

nancing aid for housing in

inflationary conditions.

offi¬
could \ be
any

From

last

com¬

being
made to
discourage increased val¬

Three Congressmen Die

cer¬

the

important influence.
time, special atten¬
been given by the life

expected to do. And both of mortgages on
city
friend and foe will be able to units, the investment

conferences

any

now

in

addition, the

*•

■

»—«—

—

Institute

same

insurance

.

cise circumstances

city
mortgages

an

the

tion

of these Near East

cial, communiques

well prove to be of more
immediate practical import¬
other people
of the-h earth. ance, It is certainly to be
That Great Britain
is'willing hoped so. Naturally, the world
at this time, and in the
must wait to learn what has
pre¬
Chinese

success

conversations

Win The War!

people of the United States

these

purchased
In

years.

exerted
At

over

in

of

which

commodations. On both scores the
war-time shortage of
housing has

ing and agreement concerning

themselves in Asia is

about the Pacific Islands. The

been

two

part

on

United States have been able panies have been active in
the
to come to a close
understand¬ financing of existing dwelling

Britain and the United States
set for

dwelling units built under®
housing priorities constitute

substantial

a

■"

,

"New
war

the representatives of Russia

only by Japan, but by any
all
other
foreign coun¬

tries.

essential.

of that part
in a distinct¬

areas

not
or

Financing
Gily Housing

companies have this year put approxi¬
mately $400,000,000 into mortgages on
city homes, including apart¬
ments, bringing total financing aid of this
type to nearly $4,000,000,000, an all-time peak, it was reported Nov. 28
by the Institute of
Life Insurance:" This
aggregate represents housing for
approximately
3,500,000 persons.
The Institute said:
1

East

and for such purposes the ac¬
tive vigorous assistance of the

Thursday, December 9,1943

"From

their

own

T!
experience,

will not believe the

many persons

conclusion that the United
is

living

may

have
each

much

better.

be right, for not all
benefited
person

benefit,
an

so

even

equally.

better

They

persons

But

who has little

someone

States

or

'for
no

else has. reaped

living,' the Cornell

study discloses."

Volume

return

A

white

hard

m

its com¬

freely circulating at

money,

Commisioners of the several States

value^nd abandonment of all fowns of paper currency, man¬

modity

have

demonstrated their

willing¬

ness

to cooperate with the

the Near East by Dr^
of Iran.
-•
•, '

policy for the countries of

Groseclose, sometime Treasurer-General
Dr. Groseclose admits that his

metallic" money

face

recommendation flies in the

,

Government

Elgin.

;

rrr—*

r

cannot

set

be

opinion, including the ! down entirely to ignorance of the
vocal opinion in the Near Eastern , blessings
of civilized monetary
practice and theory. These are the
countries themselves; and he rec¬
ognizes that silver is "less adapted lands, he notes, in which banking
;
to the settlement of interna-; and commercial credit instruments

of monetary

.

Even so, he rec¬

ommends it for the Near
Near

"The

-

East.

East—taken

the

as

Turkish
and
Persian
speaking countries lying from the
Nile Valley eastward to the bor¬
ders of China—is, historically and

Arabic,

traditionally, a hard money

terri-'

published' by

Dr. Groseclose states

inflation

exists

attempts to
control iff even in those countries
long
under European tutelage,
the

Near

East,

and

been ineffectual.

have

'

governments of these
permitted them¬
lured by the vogue
of European
note issue systems
and Western monetary theory into
countries

never

be

to

selves

experiments
and

had

in

paper

currency,

they clung to their

fashioned metal moneys,
tain

old-

it is cer¬

hardships
less," he adds.
Groseclose statess that the
their present

that

Says Issue Of

;

Describing
such

other

Mr.

.

on

Kansan's

the

pub¬

mis¬

prove to be one of The major
takes in the political management

countries.

of these

of good metal
and services,
forced to accept dirty pieces of
paper
the
symbols on which
they frequently can neither read
nor understand, which deteriorate
in their hands and must be spent
immediately lest they lose their
value,. create a state of mind
"To be deprived
their

by the Republicans not later than

what he considers wrong

the

convention ballot and

second

that Mr. Willkie

We

was

likely to slip

wares

fostering this program, the co¬

operation of the Governors of
some
States was sought and re¬
ceived. We have cooperated with
War

the

Government

Federal

furnish

to

<

damage insurance to the pub¬
lic/ There is no reason why de¬

war

peoples

Supervision Of Insurance

Of Commissioners' Assn.

partments of the Federal Govern¬
ment
should
be
hostile to,
or

extension

the

to

American

welcome

would

views

se¬

said: "Our
liquidate a national

which

are

we

Let

$350,000,000,000.

hastily enact Federal

not

us

reliably in¬

laws which increase the

problems

confronting

insurance

now

tne

is

his

getting any details
going on at these
is

This

different

and

after
Mr.
his public
replied that he
Willkie's

that he be

suggested

reach

of

wei&fe

a

State,

totalitarian

having

deci¬

a

That is the
too much

of

t

don't know what is
The heads of our Gov¬
meeting and we want
know what is going on.

"People

.

Mr.

we

republic.

a

that today! t

upon

He

in

dnd

here from

arrived

attack

utterances.

ihissioner. Harrington
must

not

antithesis

shortly

Washington
Willkie's

curity benefits at this time, Com-

formed will reach

President of the National Association of
Commissioners, warned on Dec. 2, that if the principle that
is not commerce, and therefore not subject to Federal regu¬

social

what

"That is how

people."

Landon

Mr.

going

on.

ernment
to

"

are

'The London Economist,-' in its
issue

current

America

in

raised the

that

the

same

last

arrived

few

in

days,

questions respect¬

ing the Moscow conference that 1
because of the lack of de¬

raised

tails

we

have concerning it."v

J. A. Stevenson Elected Chairman Of Institute
Of Life Insurance

attitude to¬
of

are

to

sion

judgment, it must go if it is
win
the
confidence
of ' the

ser'ously considered by State of¬
ficials." ;•,;*•- V"V'"' -■T ':

realistic

my

welcome

would

conferences.

in my

criticism1 should be welcomed and

a

w'th

,

"We
as

supervision of insurance
which has evidenced a willingness

debt;

'

views.

State

Urging

I

definite.

"specific and definite." Governor
Dewey, with whom Mr. Landon
expects to confer today, also ar¬
rived in towri, after1 a fortnight's
to cooperate.. Destructive criticism
should be beneath the dignity of
Federal
officials r- constructive
of

much inter¬

very

speech of last week before the Re¬
publican junior Senators in Wash¬
ington," said Mr. Landon. "I do
think he ought to be specific and

destructively critical of a system

Nation

Federal And State Rights Involves
System

plications of the Governor's speech
in a differ¬
ent direction from that in which,

Corporation to
of the

Damage

be

on

would take the party

make effective the purpose

by familiarity
of ;these

compensation
a

would

"I

the Moscow agree¬ from Woodrow Wilson's
day, when
ments, represent the thinking of we had
open
discussions, or to
the Republican Party, then cer¬
quote Woodrow Wilson nimseb,
tainly some one other than myself
'open covenants openly arrived
should lead the party in 1944. For
at.'
the statements, inferences and im¬
Saturday

in connection with war contracts.
In

contro¬

ested in Mr. Willkie's views as to

direct charge
Federal Government

against the

which, however latent and unob¬
served, and understandable only
life

workmen's

of

Georgia,

Island,

Sea

at

but declined to enter the

would be nominated for President

partment in making it possible for
companies to reduce the
cost

holiday

prediction that, Governor
Thomas E. Dewey of New York

cooperated with the War De¬

insurance which is

,,
,<
—————

versy.

insurance

that the at¬

the recent speeches
of the Republican

lished

Commis¬

the advancement of the war.

thinking

(1>

asked rfdi*

when

Landon

comment

of

instances

the

Mr. Willkie voiced his criticism<$>
of

he- continued:

Insurance

State

have

Charles F. J. Harrington,

insurance

is

write-up added in part:

the

affecting the
illustrated, he

cooperation,

"The

.

Preservation Of Free Enterprise
Insurance

in

times

Dec. 6 asserted, that if

on

M. Landon '"represent

Party," that someone other than himself should lead the Republicans
in the 1944 Presidential campaign, said Denis Tilden Lynch in an
item in the Dec. 7 issue of the New York "Herald Tribune."
The

with the Federal Government.

ward

Advocated By Head

of Alfred

said, by the appointment of' a
special committee of the Commis¬
sioners' Association to cooperate

with the modes of
makes for
Dr.
preference of these countries for political and social unrest."

would be infinitely

Continuance Of State

all

at

This

business.

tempt to override the traditional
distrust
of
paper
money
may

for

»

"Had the

•

Republicans Support Views of landon
Wendell L. Willkie

solution of problems

Arabic

adaptation of an

an;

Dr. Groseclose says

that a se¬
throughout

by ;the

merchants, was prob¬

usage,

New York.

rious

Florentine

ably

Standards Inquiry,

Monetary

the

developed

exchange,

of

tory," Dr. Groseclose states in one
of a series of essays on post-war
monetary standards

Presidency, If

almost completely out of the run¬
originated: a banking code existed sioners, through their National ning before convention time.
here long before the Mosaic Code; Association, are cooperating with
"Predictions
are
hazardous,"
a
form of bill of exchange was General Grant in advancing a pro¬ said Mr.
Willkie.
"This much,
employed by Assyrian merchants gram- of the War Department de¬ however, is certainly true—that
of the ninth to the seventh cen¬ signed to protect industrial plants
if
Governor
Landon's
recent
turies B. C.; and the modern bill producing material destined for
speeches, particularly the one last

.

tional balances."

Willkie Will Not Run For

Federal

link

aged currency, or stabilized ratios, and eschewment of efforts to
their currencies to a world standard—is recommended as post-war
monetary

reg¬
business

needed,, the
Commissioners
Association and the • State legis¬
latures are always willing to con¬
sider
the necessity - for
it, Mr.
Harrington emphasized that the
is

Near East

Urge6 Return To Silver For

further

of the insurance

ulation

Former Iran Official

Standard Opposed By

if

that

Declaring

:•

Efforts To Link Currencies Of Near East To World

2345

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4236

158

John A. Stevenson,

Co.,
of

President of the Penn Mutual Life Insurance

elected Chairman of the Board of Directors of the Institute
Insurance, succeeding Gerard S. Nollen, President of the

was

Life

Co., at the annual meeting of the Institute's board, held
Hotel in New York City on Dec. 1.
;
.
his post a broad experience in the insur¬
ance
field and wide familiarity^1
^
* with insurance problems. He has | Metropolitan Life Insurance Co.;
headed sales executives associa¬ Julian Price, President Jefferson
tions and is
particularly inter¬ Standard Life Insurance Co.; and
Bankers Life

at the Waldorf-Astoria
T

Mr. Stevenson brings to

ested in the educational and econ¬ Frazer B. Wilde, President, Con¬
vulnerable "similar basic principles upon which other busi¬ companies and Insurance Commis¬
General Life Insurance
omic phases of life insurance. He necticut
been constructed are equally vulnerable and likely to sioners.; Our Government can give
;
is the author of many books on C°.
be succeeding objectives of the national planners."
us
nothing.
The little taxpayer
life insurance and was one of the
New members of the Board of
Addressing
the
37 th
annual^
with
the
leading actuarial so¬ must share. with the large tax¬ pioneers in the training of life Directors, elected at the annual
meeting of the Association of Life
cieties.
He told how, after the payer the cost of any extension of insurance agents.
meeting
of the Institute, were
Insurance Presidents in New York
Mr. Stevenson becomes, ex of¬
actuarial committee had completed Government benefits in addition
James A. Fulton, President, Home
City, Mr. Harrington," who also is
ficio, a member of the Executive Life Insurance Co., and Charles
Commissioner
of
Insurance
of its studies on the subject, a com¬ to his share of the war debt."
Committee of the Institute and
mittee of insurance commissioners
F.
O'Donnell, President, South¬
Massachusetts, declared that the
other
new
members elected to
reviewed the work and suggested
western Life Insurance Co., suc¬
doctrine in Paul v. Virginia, which
this committee were: Claris Ad¬
certain changes in the interest of
ceeding Mr. Lincoln and Bertrand
held that insurance is not com¬
ABA Exec. Council
ams, President, Ohio State Life J.
Perry, President, Massachusetts
merce,
is not confined to that practical administration of. the
Insurance
Co.;
and George L. Mutual Life Insurance Co.
Public offi¬
business alone, but "is a funda¬ proposed new laws.
Harrison, President, New York
cials and insurance company ex¬ To ilet In
mental delineation between Fed¬
Holgar J. Johnson was reelected
Life Insurance Co. Retiring mem¬
ecutives who participated in the :
The annual
spring meting of
eral and State rights, between rule
President and Arthur C. Daniels

lation, is

have

nesses

'

*

April

by law and rule by

-

immediately
busing, tnejiissue
everyoViePof/you,"

"Although related

,

to the insurance

important to
the1. life insurance execu¬
tives/ "It "involves the preserva¬
tion of our free enterprise sys¬
tem." '
v ':f-. \

is

he told

Strongly advocating a

-

ance

of

continu¬
of in¬

State supervision

Mr. Harrington described
Commissioners'; Association as

surance,

the

proud of
that within six months of

work "have reason to be

the fact

the

adoption

of their report

the

National

Association

Commissioners,

surance

legislatures

of

14

by
In¬

State

adopted the legisla¬
tion," he said.. IIei added:
"V-T
"fm 11 additional States,1 legis¬
lation is unnecessary to permit the
'

'

use
ure

of the tables and non-forfeit¬
benefit

provisions of the re¬

In more than half of the
States 6f the Union, within a six
port.

oughly cognizant of

,

•

added.
•

Commissioner Harrington

modernization

-

cited




are:

the Executive Committee

Leroy A. Lincoln,

President,

Secretary of the Institute.

held

in-Chicago

at

Stevens

the

Hotel, April 16-19, 1944, it is
nounced

an¬

Robert P. Patterson Opposes

L.. M.' Wiggins,

A.

by

President

of

the Association

President

of

the

ville, S. C.
The

Bank

Change Renegotiation Contrasts

To

and

of

Association,

the

the

Vice President

Committee,

Finance

Council;

is

the

governing body of the Association,
consisting

Robert P. Patterson,

Harts-

'■■■<--. ;■

•

Executive

of

officers

of

the

Presidentand

of each of its

six

the

on

Undersecretary of War, before the Senate
Dec. 6, declared that there is no merit in

suggestion that renegotiation

should be used to allow war con¬

for post-war conversion and at the same
time he opposed the proposal to base war contract renegotiation on
profits after taxes.
Washington advices to the New York "World
Telegram" of Dec. 6 in reporting^
label of profiteer fastened to it,"
this- gave other remarks of Mr.
said Mr. Patterson.
'If the. price
Patterson as follows:
tractors to build up reserves

divisions. and sections, the chair¬

k.\\ r-lvv.\ not been
Patterson said changes in udjusimciA
renegotiation
law, in' the available, I am An tain that other
measures would necessarily have
and 83 representatives: elected by House-approved $2,000,000,000 tax
been taken, which might have
bill were generally satisfactory to
the
member
institutions :of the
the War Department,, except in oeen harmfql to war production..
various sfatesr The \ meeting will
"To date price, adjustment oper¬
the case of certain administrative
ations have, saved the Government
bring together f he -members of the features.
..:ht ' '
V
Mr. Patterson said that abnor¬ some $5,300,090,000, of -which $2,CounciWand; the, leaders of the
cash which procur¬
conditions
still
prevalent 500,000,000
Association's Commissions, Coun¬ mal
make it necessary to continue the ing agenciesv have recovered or
cils',. and Committees, and the of¬
will recover.
The other $2,800>those
legislation bringing about a down¬
States,
which
have not
ficers of its Divisions, The Coun¬
reflects
reductions
in
ward adjustment in war contracts. 000,000
adopted the legislation, to intro¬
duce it at their next legislative cil Holds two meetings a year, the Price adjustment by the War De¬ prices for future deliveries under
existing contracts."
session. We believe that the re¬ annual spring meeting in April partment has been fair and rea¬
Mr. Patterson declared that the
sonable and it has not delayed or

of mortality
tables
and valuation standards,
maining States will take favorable
together with a revision of the
action manifesting that the States
methods used in computing non¬
can by uniform legislation achieve
forfeiture benefits, as a recent ac¬
adequate interstate supervision of
complishment of The Commissioners' Association in cooperation the business of insurance."
the

bers of

•

deliberative body, thor¬
months period, it has been possible
its responsi¬
for State supervision to make ef¬
bilities and reasonably striving to
fective
technical
and
involved
attain its objectives," and asserted
legal principles designed for the
that, it "has been a satisfactory
protection and- benefit of future
substitute for a Federal bureau
life insurance policyholders and
and certainly less expensive."
;
their beneficiaries. No responsible
"A debt burdened nation should
not at this time be required to criticism has been directed against
the program; Unstinted praise has
support another, great Federal bu¬
been voiced by those who under¬
reau, with the resultant conflicts
stand the nature and extent of the
of opinion and probable increased
benefits : the public ■ will derive
litigation' To * determine "where
from this momentous work.! We
Federal
supervision
begins, i or
have urced the Commissioners of
where State supervision ends," he

"3 serious,

the Executive Council of the Am¬
erican Bankers, Association will be

men

.of

its

various

commissions,

Mr.

the

-

and

a

second

annual

one

of the Council

tive

held during the
The

convention.

sessions;-

s

always execu¬

are
-

meetings

,

impeded

clared.
:

war

production, he de¬

"American industry

to

come

charge that the renegotiation law
administered in a man¬

has been
.

doesn't want
with the

out of the war

ner

be

un^'r

to

sustained.

contractors

cannot

2346

FHE COMMERCIAL & FINANCIAL
CHRONICLE ~
vidual

Opinions Of James A. Treanor, Jr. On AntiManipnlative Provisions Of Securities Acts
Nov. 16 made pub¬

on

ing

Treanor, Jr., director of the Trading
Exchange Division of the Commission.
One opinion discusses
the effect of the anti-manipulative provisions of the
Securities Ex¬
change Act of 1934 and the Securities Act of 1933 on the activities of
of

underwriting syndicate.
circumstances under

the

cusses

which members of

ing

The

an

underwrit¬

an

group who has raised the

create

excessive

would

mar¬

other

to

contravene

provisions

ties

to

have

violated

manipulative

the

provision

of

3505

the

Exchange Act of

Securities

1934

Regarding Activities
Manager of Underwriting
Syndicate

In

the first

Mr.

case

of

a

the

that
of

security

the

Mr.

the

"1.

In this situation,

Treanor

purpose

Neither

the

the

anti-manipulative

fraud provisions of the Securities

Exchange

Act

of

1934

and

Securities Act of 1933.
The

opinion also

factors
ence

which

discusses

indicate

absence

or

of

intent.

the

the

pres¬

manipulative

,01.}
The opinion applies to securities
x

which

traded

are

curities
those

exchanges

which

national

on

well

as

traded

are

se¬

to

as

in

the

over-the-counter market.
The text of the opinion follows
in full:

ject to the anti-manipulative

pro¬

visions of the Securities Exchange
Act of 1934 and the Securities Act
of

1933.

underwriting

an

Corporation. ' The
issue is being publicly offered at
a fixed
price, having recently be¬
come effectively
registered under
the Securities Act of

1933.

I also

understand that the syndicate ac¬
count
is
'short'
shares
in
the
of

approximately 8%
originally offered,
from over-allotment.

the amount

sulting
also

that

appears

members

of

the

the

of
re¬

It

individual

underwriting

group are 'long,' in the aggregate,
approximately 17% of the amount

originally

offered,

representing

the unsold portion of the
original

offering.
of

the selling group who are not
have an aggregate

position

amounting to ap¬
12% of the original

proximately
offering.
"In

'

considering- the

which

have

you

v

.

•

question

raised,

we

may

start with the premise that a
syn¬
dicate over-allotment is custom¬

arily

made

for

the

purpose

of

facilitating the orderly distribu¬
tion

of

the

offered

creating buying
be

used

for

the

securities

by

power which can
purpose

of sup¬

porting the market price.
Thus,
it would appear, in the absence
of
circumstances indicating the
contrary, that purchases made for
the purpose of covering the 'short
position' of the syndicate are ef¬
fected

for

the

purpose

of

facili¬

tating the distribution^ Moreover,
such purchases are effected to

if

facilitate the offering, it is obvi¬
ous that there exists
the^, intention
purpose

chase

of

the

of

the

inducing the

offered

pur¬

security by

the

syndicate

The

underwriting

options

no

class

same

those

"7.

All

agreements

syndicate manager
ers

restricting

of any
to sell the securities of the

person
same

class

as

the offered security

have been terminated.

underwriters

stating,

informed

of

be

reached

that

the

-v

individual

upon request

istS.

/

"Applying
the

facts

which

principles

have

been

to

pre¬

sented

by you, it is obvious that
the position of the
underwriting
group is only technically short,
the underwriters as a
group actu¬
ally having a net long position

amounting in the aggregate to 9%
of

the

amount

of

originally offered.
selling

group

curities

securities

Moreover, the

members

remaining

additional
obvious

the

have

unsold

in

se¬

the

amount

of 12%,
It is
participants in the

that

distribution

inducing

are

the

still

engaged

purchase

of

and

offered security by others.
these

Under

circumstances, purchases of
the stock effected
by the syndicate
manager as agent, for the under¬
writing group which. raise the
price of the stock or which create
excessive

trading activity, would
clearly be unlawful, even though
one

ager

of

in

is that

the

purposes

of the

man¬

effecting such purchases
of
extinguishing the tech¬

nical short position of the
syndi¬
cate account.

of

since

tween

the

syndicate

the

selling group.
relationship be¬
selling group and the
is
customarily ;; deter¬
the

mined by contract between the
two, and since, in effect, the mem¬
bers of the selling group are sell¬
ing securities for the manager
and

the syndicate which he
rep¬

resents, it would likewise seem
appropriate for the 'contract be¬
tween the

underwriting syndicate
selling group to contain
provisions
analogous
to
those

cates that

tion

to

has

frequently

by managers of syndi¬

they

knew

not in a posi¬
whether the indi¬
are

the

Opinion

Dealing

With

Raising

Prices of Securities During
Distribution
r ;
.

> <

of certain members of

an

un¬

derwriting group, who, while they
or

other members of the
group or

members of the

still
of

engaged

selling group

in

the

are

distribution

a

security, effect transactions in
such security. In such a
situation;

Mr. Treanor points
out, an underwriter's purchases which raise the
market price of the

security

which

are

whether

excessive'' trading
illegal regardless of

the

characterized

transactions
as

are

"stabilizing"

"trading" transactions.
change securities and

in full:

"You

opinion

■

,

ex¬

to over-the-

counter securities.

The text

or
v

The opinion applies both to

•

or

create

therein,

transactions

be

Section

a

in

9

(a)(2),

have

asked

me

for.

an

as

Corporation which are being pub¬
licly offered at a fixed price by an
underwriting group of which you
"I

member.

that

the

effectively

deben¬

to

manipulative
type

(2).
that

in

9

has

"The

opinion,
writer

facilitate the distribution of

a

lawful

'stabiliza¬

days ago, and that the

offering was made on the day fol¬
lowing the effective date.: I also

all

of

distribution,

In

general,-as long

same

as

purpose.

the syndi¬

cate agreement is in existence
and
the manager is vested with
the
power

of acquisition and resale of

securities

customarily

conferred

him by such
agreements, all
members of the
syndicate, what¬
ever
their
individual
positions
may be, should be on notice that
upon

the

distribution

is

or

may

be

process and that

they are or
participants therein.

be

"The fact
ment

of

labelled
and

by

that

the

the
as

it

trading

underwriter

may

be asserted that

they are effected without knowl¬
edge by, or consultation with, its
retail

apparent trading greater than that
to

necessary

prevent

or

retard

a

decline in the

price. When a block
unregistered security is be¬
ing publicly offered and. transac¬
of

an

tions

in

that

security admittedly
being effected for the purpose

are

'trading' transactions

does not affect my conclusion.

or

/>■/;!;-

depart¬

security

which create actual

in

may -

that the transactions

tion' does not encompass transac¬
tions which raise the price of the
or

the

allotted

or

the

sumed-fo have the

effected

.

by

as long
stabilizing
offering. While
this situation
prevails, the man¬
ager is still inducing the
purchase
of the
security by others, and the
underwriter, as one of the man¬
ager's principals, is to be
pre¬

preventing

.

sold

retained

facilitate

still

.

not

the manager is still

as

to

to

retarding a decline
in its open market price
' Se¬
curities Exchange Act Release No.
2446, March 18, 1940, p. 3.
v.; -;.

he to effect similar

directly.

have

may

curity to be 'the buying of a se¬
curity for the limited purpose of
or

man¬

transactions, it

foregoing is true, in my
even though the under¬

securities

(a)

se¬

the

were

to him in the

stated

'stabilization'

effected

the

by others.

purchases

Section

Commission

considers

of

the
view that the
trading transactions
were not also
conducted, at least
in part, for the
purpose of induc¬
ing the purchase of the
security

subject to the antiprovisions of the

described

The
it

members

security, or create trading
activity beyond that necessary for

they constitute lawful 'stabilizing'
transactions, in which event they
would not be

the

>

the

stabilizing, it is difficult, if
impossible, to give credence to

V,.

provisions

of

members

concurrently effects trading
transactions which raise the
price

determining the application

these

members

individual

of the

a

distributing

organization,
Al¬

though the argument has fre¬
quently been made that the trad¬
ing department of a firm which is
a

member

of

an

underwriting

operates independently of
the'retail division of the same
group

firm,-^the fact remains that the
a single business
organiza¬

of

firm is

the

tion and that the act of the
trading
department is legally the act of
the distributor.
j

facilitating the distribution, it
regis¬ is clear that the distributors have

tered under the Securities Act of
1933 several

of

'

the

The

he

made by the manager, considera¬
tion must also be given to whether

are

understand
became

"In

for

the

exchange
creating actual or apparent active
trading in such security or raising
or
depressing the price of such
security; for the purpose of induc¬
ing the purchase or sale of such
is mine.):.

law,

purchase of that security by
others, with the result that when

transactions
on

indi¬

When an
underwriter is engaged in the dis¬
tribution of a
security he obvi-'
ously has the purpose of inducing

other

registered

the

as a matter of

the

15 and 17

securities

"Obviously,

to the legality of cer¬
tain transactions you
propose to
effect in the debentures of *'X'

are a

security

national

of

transactions,

transactions

v

series

behalf of the syndicate effects

appears obvious that any member
would be in violation of
Sections

"Section 9 (a) (2) of the Ex¬
change-Act makes it unlawful,
directly * or - indirectly,' 'to effect,
a

manager of an

group would be liable if the

Exchange Act and of Section

persons,
in any

neces¬

ing excessive trading.

ager

Section

more

obviously not

to facilitate the distribution
and would be considered as
creat¬

sary

"Since

17 of the Securities Act have been
violated.- v
\

or

higher

a

Such trans¬

group are liable as prin¬
cipals for such unlawful transac¬

whether the general fraud provi¬
sions of Section 15 of the Securi¬

one

are

tions.

(Providence, Rhode Island)
al., 9 S.E.C. 319 (1941), Securi¬
Exchange Act Release No.
2901, p. 9, et seq. Therefore, the
provisions .of Sections 9 (a) (2)
are
pertinent
in
determining

with

actions

group.

et

or

price may be found.

agent

ties

alone

tions and transactions at

of

pany

ties

pur¬

offering price,
while the distribution is
going on,
would be
unlawful, in my opinion,
even
though independent quota¬

likewise responsible for the un¬
lawful acts, since the
manager of
a
syndicate is no more than an

which

of

point out that
the

ing group are,

registered security,

violation

above

vidual members of the
underwrit¬

In the Matter of Barrett & Com¬

;

o£ the opinion follows
:4,r
" :-/X'y'.y

chases

unlawful

not

are

^x security by others.' (The emphasis

In the second case, Mr. Treanor's
opinion deals primarily with the

tures

statement

been made

that

would

man¬

mem¬

I would like to

on

national securities

a

violate

if effected in

relationship

of the syndicate

members

in
the

on

view

man¬

not exist between the

And

case

these

debentures

would

under¬

of the

community of interest between

in a

given setting the purpose of facili¬
tating an offering no longer ex-

legality

Securities

them and the manager's
purchases
to
the
benefit
of the

is it necessary for all of the
fac¬
tors to be present before the con¬
can

the

.

of -inducing the

purpose

chase

of

the

offered

pur¬

security by
follows, in my
"Accordingly, I am of the opin¬
opinion; that under such circum¬ ion that purchases effected under

others.

It

also

7

-

change Act and Section 17 of the
Securities Act. In this connection,

underwriting group who has
authority to purchase securities

by

the

mentioned above."

clusion

facilitated

initially

the

registered

manager, upon re¬

be

essarily include all of the factors
taken'into consideration, nor

to be

be

,

"Since

in

of

and

"The




shall

"It should be noted that the fac¬
tors mentioned above do not
nec¬

others.

"Under these circumstances, all
purchases which raise the market
price of the offered security or

a

being of¬

right

it

the

redound

group

underwrit¬

or

the

provisions

for

bers of the selling group, there is

of

the

connection,

appropriate

between

ager

short

with

this

seem

contain

may

securities of

on

as

considering

information

agency

X y''y<xX

■

will

ager,
to deliver to him unsold
Exchange Act
securities, at or below the offering and Section 17 (a) of the Securi¬
ties Act of 1933, if effected in a
price, for the purpose of reducing
the syndicate short position.
security which is not so registered.
?
In this connection, I refer to
you
"While an

dis¬

commencement

the

problem

the

"Moreover, if the

"I believe that discussion of the

therein

to stabilize
price of the de-

of Section 15 of the Securities Ex¬

fixed

of law. "-

trading

necessary

effectively

debentures, through your trading
department, at prices which may

it

more

was

bentures, in my opinion such
transactions would be in violation

that, in addition to
debentures
retail department at

15 of the Securities

the

fered; and

Moreover, the members

underwriters

long

"6.

issue of shares of

of 'XYZ'

amount

and

of

holds

"As I understand it, you are the
of a syndicate which is

manager
stock

tribution

covering
position;

in

In

than

public offering price,
you yould like to buy and sell the

any

created

or

the

your

ing from the offering price when
such purchases are made
by the
manager.
vyv,:
w':0

quiring
writers,

offered security;
"5. A reasonable period of time
has elapsed between the termina¬

participants

the

for the agreement between under¬
writers to contain provisions re¬

"4. The manager has
not, while
covering the syndicate short po¬
sition, made additional short sales

of

through

such

effected transactions in the de¬
bentures which raised their price

the

purchased

exchange, Section 9 (a) (2) of the
the offered securities
Exchange Act of 1934
which the individual underwriters is not by its terms directly appli¬
cable.
have remaining unsold.
However, the Commission
Moreover,
has
it would also seem
consistenly
expressed
the
appropriate

ing price;

part

the

of purchases made at
prices vary¬

quest,

estab¬
lished market price of the offered
security is above the fixed offer¬

on

"You state

decline .in

a

"Thus, in the situation described
your
letter, if the manager

in

un¬

from
the
You have been selling
the debentures at retail at the
fixed public offering price.

distributing

retard

or

the two Acts.

manager.

the

foregoing,

necessary

effect, that the

independently

tion of distributive efforts

all

amount

of the

"You
have
inquired whether
transactions effected by the man¬
ager of an underwriting syndicate
to cover an over-allotment short
position of the syndicate are sub¬

to

the

agreement

by the manager to acquire
securities away from the
market,
i.e., in privately negotiated trans¬
actions, for the purpose of cover¬
ing the syndicate short position;
The

dn

as

group
have
additional
debentures

incumbent upon the
insure his ability to

to

made

"3.

of

seem

would

"2. Reasonable efforts have been

the

price clearly would be in violation
of the general fraud
provisions of

of

the

tribution.

security, and hence
are no longer
engaged in solicit¬
ing purchases thereof; : f

and

the

for

selling

trans¬

immunity to

purchases

effecting

concerning the status of the dis¬

of the offered

late

view

obtain

underwriters

selling-group members
have remaining unsold
any shares

nor

grant

manager

the

price of the security or create ex¬
cessive trading therein, will vio¬

or

"In
would

r,r,.c

points out, .a' man¬
ager's transactions whictbraise the

of

any

curity or creating greater trading
activity than is necessary to pre¬
vent

principals from
anti-manipulative provisions exceed the price at which your
of law. On the
contrary, no such retail department has been mak¬
agent should permit his principal's ing sales. You ask whether such
act or refusal to
act, to force him, 'trading' transactions, if effected
the agent, to violate the law
in prior to the completion of the dis¬
attempting to protect such prin¬ tribution, would violate any of
the anti-manipulative
cipal's interests.
provisions

be considered in

follows:

as

members

principals in

such agent or to his
the

longer has the inten¬
tion of facilitating an
offering, but
has only the purpose of covering
the syndicate short
position, are

members of the selling group are
engaged in the retail distribution
of such security.

opinion,

manager no

or

noted

action effected by the
manager as
The failure of an
agent of
an
underwriting group to inform
himself with respect to the
status
of the distribution
cannot, in my

is still present.
Some of the ex¬
ternal factors indicating that the

while

syndicate

have

individual

man¬

has

which,

of a syndicate
the members of

for

as

'

stances transactions by the stabi¬
lizers raising the price of the se¬

of

the agent

as

derwriter, you purchased from
issuer, and as a member of

such.

,

still

agent

and

com¬

one

purpose
of
facilitating the distribution. You
have not yet disposed bf some of
the debentures

manager

group are

Commission

determining whether that

a
security to reduce the
position of the "syndicate

in

underwriters

tors which must

manager

the members

the

be

the

offering

underwriters,

debentures

underwriting group and that

the

No.

purpose of facilitating a distribu¬
tion.
There are a number of fac¬

Treanor's

chases of
account"

by

Release

an

the

the purpose of covering a short
position impel the conclusion that

of

of an under¬
writing syndicate who effects pur¬
short

is

the

since

underwriters, acting

been

permit

reduction

or

underwriters, it should
that

16, 1943.
"However, not all purchases for

opinion deals primarily with the
case

issued

Act

under date of Nov.

and of the Securities Act of 1933.

Opinion

Exchange

extinguishment

to

first with respect to the individual

law. .In this connection, you may
be interested in
examining Securi¬

anti-

securities

that

ager of the group
for all of the

"Considering these contentions

of

appear

understand

Thursday, December 9, 1943

mencement of the

the

man¬

of the short position.

the

anti-manipulative

held

■

the

activity

a security or created
activity therein during their dis¬
tribution of that security
may be

ket price of

selling-

securities

requiring
underwriting or sell¬
to supply them with

groups
offered

the

opinion dis¬

trading

have

agers have no means of

and

manager

members

group

or.,

remaining unsold, and that
members of

The Securities and Exchange Commission
lic two opinions of James A.

a

underwriters

-

.

THE COMMERCIAL &

Number 4236

/Volume 158

by any depart¬
raising the
price of the security or creating
'excessive trading therein would
Violate Section 15 of the Securi¬
ties Exchange Act and Section 17
*(a) of the Securities Act.

Treas.

has
•been confined to the situation in
"Which the manager' of an under¬

crease

Proposals For Raising Corp. Taxes Shake
Nation's Economic Foundations: Friedman

such circumstances
of

ment

firm '

your

writing group is stabilizing, on be¬
half of the members of that group,
to facilitate an

offering. However,

conclusion that so-called trad¬

my

ing transactions

which raise prices

which create

excessive trading

or

activity during the course of
distribution are in violation

the
of

the ex¬
istence of a stabilizing operation
When an underwriter or selling-

law does not depend upon

group member is still engaged in
offering the security he is induc¬

security
by the

ing the purchase of that
by others.
Transactions
underwriter

time-which
activity
which raise the

that

at

:

excessive trading

create

in the security or

price thereof, are illegal,

regard-

they are char¬
'trading' or 'stabiliz¬

whether

of

-less

acterized as

ing' 'transactions."

proposals to inincometaxes
always break the stock market.
The British are not subject to a
double tax 011 Corporate income
but we are. Compared with Sep¬
tember, 1939, the London stock
market is now about 50% higher
but the New York Stock market
is about 17% lower. If you raise
the rates, the market will fall. If
you lower the rates, the market
will- rise.
'-7 77 7:_'f.■ 7/. 7>7s
.Under
Treasury
proposals,
United States will have the high¬
est corporation tax in the world;
equalling the Nazis, who do not
tax
excess;, profits.: The
United
States will have the highest ex¬
cess
profits tax in the world,
matching Great Britain's, which
does not tax corporation income.
Your Committee is considering
the House Bill which would raise
the excess profits tax from 90%
to 95%. This would not be an un¬
reasonable proposal if we had not
in 1941, changed the sequence of
Treasury

Our

discussion

this

far

"Thus

■

(Continued from first page)
•
'Stalin
at
Churchill's
birthday

capital base should not be

vested

lowered to 4%.

Warns

Kilgore Bill

Science &
James

Industry

Cunningham,

D.

Chair¬

of the Committee on Patents

man

the National Association of
Manufacturers, charged on Nov.
29 that Senate Bill 702 (the Kil¬

of ;

bill)

gore;

and make it
can

"stifle

science
impossible for Ameri¬

would

business ' to

As

Finland

7

should not be raised, and the in¬

.

For

again an accord

railroads

and utilities, the

proposals may be illegal. The
have held as confiscatory

tax

.

once

corporation

1

a

pressure,
have

President of

complete socialization of all forms

/"How

we

can

want

the

leaders

in this latest

taking event, they

delight

a

seemed to take

fJin telling the people

about it.
But whatever it

is doing to the

enemy's nerves, we know that it
is terrible on ours.' % -'!■This last one seemed to be on
way of being just about as
as we could stand.
And it

v

the

much

that if the propa¬
build-up had . not 7 gone
wrong the let-down would have
been
sickening; it would have
caused no end of harm to this

is

guess

our

ganda

country's morale.

77,7 v

correspondents and radio
commentators are indignant be¬
Our

■7

of the mishandling of the
To this writer's

cause

American press.

mind, it was the country's break.
By the time Mr. Roosevelt had
been out of the country for a week
there was hardly a hamlet in the

the following
the

published that mo¬
developments were about

were

One that received
was that the Big

take place.

to

wide

credence

Three
matum

were

to

deliver

an

right then and there.

ulti¬

Then

.there came an outburstqof peace
rumors, from Lisbon^ Madrid and
Stockholm.
Goebbels-nwas un¬

he did a
Our players at the soof nerves asked for it;

doubtedly at work and
good job.
called war

they were getting it.
The

is

result

perhaps

millions

7

that

of

7/'

thousands,

mothers in

thought the war was
end. 'This was the state

this country
about to

in Washington; in
Congress; in the newspaper corps.
of

suspense

state
when the meaningless
communique finally came through,
there
would undoubtedly have
been a breaking of'nerves all over
the place.,,
.7.;; ///■//,'■. ' .•.'■'7.'
Had

we

still been in this

of suspense

Fortunately, the truth, became
known slowly.
First, there was
the
"momentous" announcement
regarding Japan. It was apparent
then that the conferees were bark¬
ing so loudly because they had
nothing else to offer.
Then the
release in Moscow on the Teheran
confab prepared us for the worst.
It was good that it came this way,

..

.

Research?"

and technical

expect to achieve

at

the

Second

War

Congress of American Industry
New York City on Dec. 8, 9,

propaganda line that she is

only answer they could find and
this they decided they could never

fight

accept, preferring rather to
on
alone
even
after
the

Axis

capitulated, it was reported.
Called to Helsinki for consulta¬

of

a

be

should

separate

in

Stockholm,

turn

no

Premier

reach¬ pro-ally tendency and too much

Edwin

Minister
Henrik
Ramsay
called the
in a debate on future policy

Linkomies
Sir

.

war.

and

anti-German demonstration."

Germany,

Foreign

following the meeting of the rep¬
resentatives of Great Britain, the
United States and Russia at Mos¬

meanwhile,

to have received what

She has

appears
she wanted.

agreed to furnish Finland
of tons of grain

tens of'thousands

and

sugar

ficial Nazi

by January 1, and of¬
newspapers

are

print¬

ing laudatory articles about "Fin¬
'V
land's
example" in which they
7 The Finnish Cabinet, in effect,
had decided to cling indefinitely emphasize that Finland is a "com¬
7

cow.

to

the

line

'■,//

it had been pursuing

rade in arms."

Taxes"—
Urges Forced Savings to Combat Inflation

Irving Fisher Warns Against 'filling

increased
reserves
for
10,
A program to combat inflation should include compulsory savings,
depreciation; (b) Exempt Mr. Cunningham said that the
amortization of debt; (c) Permit
Irving Fisher, Professor Emeritus of Economics at Yale University,
Kilgore bill would create the most
reserves
for economic transition
told the Senate .Finance Committee on Dec. 4, at the same time
despotic authority ever given to a
to
pe§ice;
(d) Treat preferred
warning against "killing taxes" on the rich and on corporations.
single officer (the proposed ad¬
stock dividends exactly like bond
In reporting his testimony, United Press Washington advices
ministrator)." ; 7:77 :;';:' 7;"'<,. 7-'
interest. Both are fixed charges;
stated:
As a prelude to the panel dis¬
(e) Tax publicly-owned corpora¬
He attacked increased corpora¬
cussion two important talks were
ernment loans to create more ex¬
tions competing with private en¬
tion taxes as "killing many geese
announced. "Small Business and
pansion.": ; /
;
terprise.
In "Soviet Russia . the
that Would lay golden eggs," and
the ..Patent System," by a small
7 He urged loans to the Govern¬
hydro-electric, plant at Dnieperwarned that inflation was the real
businessman, John W. Anderson.
ment out ,of savings as the best
stroy paid a 40% corporation tax
President of The Anderson Co., problem that is just beginning;
means of preventing inflation an'cl
(not 50%). But our own TV A-and
"It is hard for me to believe," insisted that compulsory savings
municipally-owned utilities pay Gary, Ind.; and "Congress and the
Patent System," by Senator Al¬ he said,: "that the American peo¬ must be adopted "at once."
no federal
taxes. If they did, the
bert W. Hawkes, Republican of ple are so stupid as to think that
"The most promising program
Treasury could collect $150,000,New Jersey.
//./7;v-/7'w777:%' 7' 7/ 7 they are 'soaking the rich' by for combating inflation seems,
000 in revenue from them and at
these killing taxes."
7
77
therefore, to be threefold: Taxing
least $50,000,000 from holders of
their securities, now tax exempt.,
"What we need is not so heavy spending more, taxing savings less
or not at all and making savings
taxation on business expansion,
(f) Shift our corporation tax to
the British basis after the war.
checking that expansion," he said, compulsory in the form of invest¬
ments in War Bonds,"
Responsible
Treasury
officials
"but heavier subscriptions to Gov¬
publicly favored this trend in pol¬
Permit

country that didn't know about it.
the
rumors
went
wild.
mentous

(a)

,

wartime

.Then

"Stories

recommendations on

corporation income tax:

instructing it that

there

According to information

ing

returns, after all taxes,

them to know,
greatest breath¬

the controlled

"

of 4.59%, full postwar employment if we
v'was reached.
7 :/ 7,/
■ •
■
also 3.65%, and also 2.48%i An hamstring
science and industry
We don't know whether these
invested capital base of 4% with and destroy the incentive for in¬
"historic" things are as terrible on
a 50%
corporate income tax will vention and research is incompre¬
the enemy's nerves as they are
produce returns that have been
purported to be.
In fact, we do declared confiscatory and illegal. hensible," he continued. :77
Announcing a distinguished six.-not see how the enemy knows
The Committee might consider
man panel on the topic, "Whether
anything about them except what
and

the

tion following the Moscow con¬
A ference, Toivo Kivimaeki, Minis¬
stricter censorship also was re¬ ter to Berlin, was quoted as tell¬
ported to have been clamped down ing a secret session of the Parlia¬
on
the press, into which public mentary Foreign Affairs Commit¬
sentiment for peace had some¬ tee that "we must please the Ger¬
mans.
There has been too much
times found its way.
,

effort.

courts

policy,

new

directive was said to

press,

mention

property, plans, technical
formation, and 'know how' of

scientific

a

thereafter

of

tb

the

been sent to

Finnish

Republic Flow Meters of Chicago,
further stated that the effect of
the measure is to "authorize the

voted

with

line

which also reflected growing Nazi

maintain maxi¬

Cunningham,

quietly dropped

reliable informant said.
In

employment."
Mr.

has

fighting a private war, disassociated from the world conflict and
apparently has decided to continue the fight against Russia as a fullfledged partner of Germany, it was reported Dec. 3 in an Associated
Press dispatch from Stockholm.
These advices further said:
This decision, following a period in which some Finnish leaders
showed a tendency toward trying
to get out of the war, was taken' since Hitler invaded Russia, but
communique issued at the
as
the only practical alternative the
to plans formulated at the Mos¬ Moscow meeting, it was said, left
the
Finns
asking
themselves,
cow Conference, which the Finns
interpreted to mean they would "what does it mean for Finland?"
have to surrender unconditionally, Unconditional surrender was the

postwar, production and full

mum

Reported Continuing War Against Russia
Full-Hedged Partner Of Germany

Finns

in¬
all
deducting the tax.'-'■•^v:'7'-v" industries, and all personnel de¬

§7 From Washington x
party, and

(Continued from first page)

,7

'

-

2347

FINANCIAL CHRONICLE

by degrees.

.

Mrs. Luce Cites Lack
Of Law On

icy.-: Hon.
Randolph 7 E.
Paul
stated so in addresses at the De¬
troit
Economic
Club ©March' --1,
1943, and at the new
vember 16, 1943.
As
gram,

a

sound

and

School, No¬
-

realistic pro¬

the corporation income tax
before excess

Deferred

Men Of Draft

Age

Representative
Clare
Boothe
Luce (Rep., Conn.) said on Nov.
24 the, law draws "a cruel and un¬
fair
distinction"
between
the
home front and the battle front in

responsibility of men of fighting
age. In a speech 011 the National
profits tax, if you raise the rate
Forum of the air, Mrs: Luce said
to 95%. As a minimum program,
that "men who are sent to the
if you retain the present unsound
battle front are required by law
and unrealistic sequence, the rate
to be prepared to die for freedom.
of
90%
of
excess
profits tax

should be deducted

Nomination;
Says Wiiikie Out Of Running

Landon Predicts Dewey's

departing from Washington, made two pre¬
North American Newspaper Alliance dispatch from
Washington on Dec. 5 in the New York "Times."
The advices re¬
ported the predictions as- follows:- .
.
• •
.
• •
1.
That Gov. Thomas E. Dewey of New York will be nominated
for President by the Republicans not later than the second convention
<$>Alfred M. Landon, in

dictions, said a

ballot.

State of New York at its monthly
2. That
Wendell Willkie, be¬
deferred on
meeting held on Dec. 2. The others
the home front, are not even re¬ fore convention time, is likely to
elected are:
7
:
perienced. It was utterly impos¬ quired by law to work for free¬ slip almost completely out of the
Harold A. Brown, New York
sible for the miracle to be accom¬ dom."';
running.
,
7
//: v,/.;/:/:"
VW,///
Manager, Eli Lilly & Co.; Wallace
plished that was apparently being
Mr. Landon has traveled
ex¬
In Associated Press Washing¬
A. Chauncey, Vice-President and
looked for, he said.
He will un¬ ton advices Nov. 24, as given in tensively in the Middle West and
Treasurer,
Interchemical Corp.;
doubtedly have a lot to tell his the New York "Herald Tribune" has made a practice to spend a
Joseph C, Dietsche, 2nd ViceChief
about
what the war of it was further reported:
forthnight in the East, principally
urer, Geigy Co., Inc.; Dudley W.
nerves in this instance really was.
in Washington
and New York,
Mrs. Luce spoke in behalf of her
.Figgis, Executive Vice-President,
We have considerable support
every six months.
American Can Co.; Joseph H. Habill, under study by the House
for our belief that Messrs. Roose¬
He basis his prognosis on the
to establish an Army and Navy
zen, Vice-President, Warner Bros.
velt and Churchill realized what maintenance
corps
of deferred opinions he is finding among Re¬ Pictures, Inc.; John I. H. Herbert,
they had gotten into and delibr draft-age men. They would be as¬ publican party leaders now, as Vice-President and Treasurer, J.
erately
botched
up } the
press signed to jobs in war industries, compared with their expresions C. Penney Co.; John B. Lewis,
handling. If this is true, we hope or other essential duties.
when
he
journeyed East
six Vice
"7
President, Allied Control
they have learned their lesson.
months ago.
Co.
': r 7
7.
:■
• .'■
Mrs. Luce said her bill would
They seem to be the only ones of
Also Philip McGuire, New York
not affect any, deferred man al¬
the
leaders who dote on these
Manager,., Bayuk Cigars; Maersk
ready working In ail essential war
"history-making" events which in
McKinney^Moller, President, Inoccupation, but would call up for
a few years, in a clearer perspec¬
terseas Shipping Co., Inc.; Rowley
the maintenance corps those de¬
tive, will prove not to have , been
W. Phillips; President Self Wind¬
ferred men not yet working in
history making at all., The history
essential jobs.
Edward V. Rickenbacker, Presi¬ ing Clock Co.; Clarence D. Roxby,
is being made by those who are
Traffic
Manager,
Nestle's Milk
dent of Eastern Air Lines, Inc.; C.
doing the fighting.
'7:77..77 7 Mrs. Luce said further, without
Products, Inc.; Edward M. Van
elaborating, that her bill would Donald Dallas, President of the
The impression is growing, in
Buren,
Insurance
and William
"tend to prevent and stop strikes, Revere Copper & Brass, Inc.; Wil¬
this
connection,
that
Messrs.
Wyer, Chief Executive Officer,
and it will largely stop labor turn¬ liam E. Speers, President of James

Men of the same age,

.

-

.

New Members Of N.

Y.

Chamber Of Commerce

:

Roosevelt

and

Churchill

Co., and L. R. Central Railroad of New Jersey.
before the Teheran
overs,
among workers of draft McCutcheon &
The
American
Can
Co. and
of the White luctantly being pushed closer and age." :7 /'"/
7, ■
7 ■ ,/■ Close, President of the Lehigh
closer
to
the
so-called second
Warner Bros. Pictures, Inc. have
House intimates was in a highly
Valley Coal Sales Co., were among
.* "The bill will also help to cur¬
been elected to corporate mem¬
nervous state.
He told us frankly front, and how they hate.it. Which tail the drafting of fathers," she those elected to membership in
is the state of mind of everybody
the Chamber of Commerce of the bership in the Chamber.
that the country was in for the
added.
*

A few days

conference

re¬

are

one

greatest let-down it

had ever ex-




who values human

life.

■

-

7

,

2348

THE COMMERCIAL & FINANCIAL
CHRONICLE

National Industrial Council Galls For Federal Dec. 15 Tax

Policy On Contract Termination
At

the

first

session

of

the

of

and

contracts

war

ting

aside

of

And Other

Dec.

on

Federal

a

with

reserves

tax

program

which

industry

Dec.

The

although

testimony.

new

New

reported in the

was

tt

•

t

Cleveland,,

President

the

of

Insti¬

American

gatisfied>>

the

also

will

make

have

1.

non-

of

Estimated

ed

1944

ben

lias

to

deal

we are

If

contracts

war

shut off im¬

are

mediately, some plants are going
to have only two or three pay
rolls

ahead

most

dangerous thing."

them—that

of

is

"I

given to those who expressed sat¬

city wage earner.when Congress
adopted the pay-as-you-go sys-

isfaction

tem.

know

other

no

with

the

authority

Rollins

trans¬

The

official

"In

board,

attitude

Bishop

contained

in

explained,
icsuiuuuu

Associated Ihd'ustrie^ adopted Sunday at a meeting of
?lurnLnphnoJ*! cnid!i%idii<;trv the executive committee at BuckMassachusetts, said industry
,

also

wanted

"make

to

government does

dump

not

mmniino

market

in

civilian

sure

™

sur-

H11_

F

n

comnetition

with

^

Ppi

*alls>

s

whirh

^a*>

the b°ard's
counsel

+ho

production

onen

the

advices
which

tion

Washington
quote, also said:

committee's

which

said

be

the

first

"Therefore, to make the

who

of

Methodist

income

on

the

Episcopal
Church,
South, Chicago, filed suit in Fed¬
in

Court

Nov. 26 to

recover

of

excess

$500,000 from E. H.
Rollins & Sons, Inc., brokerage
firm, it was reported in press ad¬
vices from
it

Chicago—Incidentally,

indicated in the New York

was

"Times"

of Nov. 27
that E. H.
Rollins & Sons, Inc., said on Nov.
26 that the suit filed by the Board
of Missions of the Methodist

Epis¬

copal Church, South, was an out¬
growth of proceedings filed against
the firm on Jan. 19,
1943, by the
Securities and Exchange Commis¬
sion, "which have not been con¬
cluded." ■ ■ v
'
"The officials of the board who
administered the funds and who

heretofore testified

were

satisfied

services

dered

by

with

E.

the

H.

Rollins

entirely
.ren¬

&

Sons,

Inc.. and

were

of

investments," the state¬

their

proud of the record

ment said. "The

suit

will

be

and

English,

many

lives.

can

Rawls,

As

well

as

a great
Ameri¬

as

military leaders

ap¬

parently believe that the invasion
of France

is

absolutely

necessary

before

Germany quits, this means
Germany may not be allowed

that
to

crack

of

November, 1944 unless

until

after

the

elections

not

Mr.

the fall of

is

more

Churchill

delay

can

Germany eleven months

question. The length of
Pacific Japanese conflict de¬

the

pends
end

a

Mr.

upon

it

in

six

months

cracks

many

■along six

Stalin.
he

or

He

after

can

can

Ger¬

drag

it

if he wishes to ex¬
haust the United States and Brit¬
ain

years

Russia

so

will

the world's

be

farmer,

"top dog."

manager of

until

Dec.

15

same

year

the

as

income

is

re-<

ceived, which is the primary ob¬
jective of the pay-as-you-go sys¬
tem—with
due
regard
for ' the
special difficulties of the farming
business."
;
From the announcement

'

quote:
"Dec.
for

15

two

on

.

is

other

Anyone

who

also

filing

a

groups
filed a

before

or

Sept,
underestimated, "his
tially—20%

farmer,

also

we

in the

of

date

citizens.

declaration

15
tax

substan¬
of

case

a

non-

prescribed

by -law for
underestimates.
The special provisions relative to
such

substantial

apply to all persons
expect that at least 80% of

farming]
"The

'

other

>

•

persons

who

must

will

their dwn benefit sums in
of $500,000, the suit asked

West

excess
an

ac¬

counting of and payment to the
plaintiff corporation of all moneys

Coast

operation

will

until

be

the

near

the

kept in full
Japanese are

be

in

will be many
the eastern
por¬

year

to

find

now

would

require
that

not

be

suf¬

filing but who

their

income

high enough to require filing

"The

filing

on

Dec. 2, approval was voted on the
plan of increasing the bank's cap¬
ital structure to $16,000,000 by the

issuance

of

75,000 shares of new

capital stock at $40

the

bank's

ture

of

rights

Dec,

purchase

to

shares

Dec]

held.

17.

These

Dividends

offered

be

one

share

each

for

stock

new*

of

three

rights expire
the recent

in

past have been paid at the rate of
$1.40 per share.
S.

Dick,

rate
per

requirements

declaration,

for

According to Paul

President,

the

dividend

beginning Jan. 1 will be $1.60
"Much of the earnings

share.

in the

past," said Mr. Dick, "have

been

applied

bank's
this

the

increase

to

working capital, but with

additional

for

amount

supplied

by the public it is consistent with

earnings to

both

the dividend rate
Such of the

as

new

increase

stock

as

is not

tion

ants, together with interest.

panied

by a decline in railroad
earnings on all but the transcon¬

all persons who had in the
calen¬
dar year 1942 or
expect to have j

will be offered to the public by a

tinental lines.

in

group

The
an

SEC

concluded

investigation

the

to

last

April

determine

if

brokerage

house
and
Mr.
Rawls had violated
any provisions
of the Securities Act in
connec¬

Army
stop and

by

jhent.

tracts

'

Board

of

Missibns

of

the

Methodist Episcopal
Church, South
placed its official position in the

recruiting
a

States

will

accom¬

abruptly

demobilization

of

This

demobilization

the

cancellation

is

sure

to

accompanied
of

cause

war

farmers and

non-farmers, include

the calendar year

the

following

of income:!

1943

amounts

or

*_*»■

the

Army (not the Navy) will begin.

tion with the firm's
dealings with
the Methodist
account,, The SEC
still has the case under
adyiseThe

the United

con¬

consider¬

able unemployment.
To sum up
the business outlook I would
say:
FROM
JANUARY
I
TO
THE

of
types

any

...

"1. More than $100
gross income
from a sourdfe'Ldtside of
wages

subject'to withholding and also
sufficient gross income to
require
filing an income tax return ($500
for

a

single person, $1,200 for a
couple, or $624 for an in¬

married

of investment bankers con¬

sisting of Blyth & Co., Inc.; Mer¬
Lynch,

Beane;

Blankenship,
Ferris
Fenton

Jones

Gould

Hardgrove;

&

Campbell,

this

&

&

Co.;

Blakely;

&

&'

Conrad Bruce & Co.
Plans

Fenner

Pierce,

Atkinson,

con¬
on
re¬

pealing
the
Chinese
Exclusion
act, saying it was "a deed which
will echo round the world".

In

a

king

cablegram

to

Speaker

from

Chung¬

President

Vice

Wallace

of

the

House

Ray-

burn, Mme. Chiang said:
"Please

convey

warmest

my

congratulations to the Senate and
the House of
Representatives on
the

statesmanlike action in pass¬
the
Warren-Magnuson bill

ing
and

thereby repealing the Chinese

exclusion act.

."The* recollection
taneous
that

and

of

the

touching

spon¬

welcome

Congress and the American

people accorded me when I was
in America will ever
remain fresh
mind.

my

;

which

voiced

of the American

the

people,

once

again shown its friend¬
ship to China, not only in words,
but

in

round

a
deed which
the world.

will

echo

"By this vivid
and
concrete
demonstration of the unity of the
United Nations, you have unmis¬
takably
reaffirmed, the liberal
leadership we have all come to

expect from Washington."

.-Wis. Home Loan
Units Raise Bond Sales
The $46,234,414
contribution of
the savings,
building and loan as¬
sociations in Illinois and Wiscon¬
sin to the Third War
Loan, both

by sale to the public and by

Hemphill,
Inc.,

[

and

pur¬

chase, is a demonstration of the
increasing appeal of government
securities to the nation

as

the

war

procedds^dtjwas

said on Oct. 28
by A.
K^f;Gardner, President of

the

Fedefa) Home Loan Bank of

Chicago] In reporting this the

an¬

nouncement from the bank added:

"The
its

bank

has

compilation

tion

of member

and

loan

two

in

subscribed for by present holders

rill

Kai-shek, wife of

Generalissimo,

gratulated Congress on Dec. 4
"the statesmanlike action" in

of

just

completed

the

participa¬
savings, building

associations

in

and

the

a

half times

Second

as

the

last

total

drive, and finds that the

proposed."

allegedly withheld by the defend¬

of

that

residents

was referred to
isue of Nov. 4, page 1817.

our

Stockholders

will

2

estimated

eligible for citizenship.

Mme. Chiang
the Chinese

capital struc¬

present

is

Chinese

$3,000,000 to

$13,000,000.

record

share. The

per

add

will

stock

new

present-day

general
a

in

has

will

declaration.

a

Whipped; but there
shut-downs

the

for

shipbuild¬
ficient
materially be

Portland, Ore.,

pointed out

passage

sentiment

At the special meeting of stock¬
holders of the United States Na¬
tional Bank of

be

It

"Congress,

Capital Stock Increased
By Portland (Ore.) Bank

naturalization

was

Chinese

immigration

law.

40,000

in

will

file by Dec. 15 are those who
not
filb
in
September

or

The cut would be based on 1942

penalties

their total estimated
gross income
from
all
sources
will
be
from

Plants at

in

cut

supply of print paper for Look
publishers for 1944.

the

thing

program

recom¬

additional

15%

a

has

the

of

who

down.

Committee

mended

33J/3% in the case of
a
farmer—should file an amend¬
ed declaration by Dec. 15 to avoid
or

ing
cut

Book

105

quota

and

1944 quarter.

WPB's

but who

Even4 the

Asserting that the defendants
"wrongfully converted" for

in

use

Publishing
Manufacturing Industry Ad¬

and

provisions, r the
to, pay his in-,
substantially in the

be cancelled.

had

for

over

only

over

enabled

stated:

V,

be carried

exempt
from
understatement if

did
Military orders for almost
because
everything, except airplanes and
they anticipated that their income
ships and certain munitions will

,■

recom¬

be

the firm's St. Louis offices.
In the Associated Press
advices
from
Chicago Nov. 26 it
was

also

saving effected

any

extends

them. It

House

j

these

is

farmers

Itates.

that

and

would

sup-

(

committee

visory

of

General Business

is
very
certain,
namely, that after Germany cracks
there will be a
temporary indus¬
trial
shake-up
in
the
United

The

The

calendar

a

available

the

^

mended

and second, a farmer's

taxes

come

her oil

supply is lost before then. Whether
or

One

suit, it is stated, named
defendants E. H. Rollins & Sons

and Walter C.

sion of France would cost

tax

will

"Under

re¬

V

The
as

(Continued from first page)

allegations in the

answered

sisted."

War, Political Forecasts
paign. Certainly this will be satis¬
factory to his people as the inva¬

on

with

;

21.

all

would be
allowed to enter the United States
each year under the

corresponding

consumption. Since publishers al¬
penalties, for ;
ready are operating under a 10%
the tax estimate is within a
33% %: curtailment,
the newly recom¬
margin of error-, (based on the mended slash would bring toal
annual tax return to be
filed, as reduction in 1944 to 25% of the
usual, the following March).'
publishers' 1942 usage.

Roger Babson's 1944

of

and

estimate

-

eral

Missions

returns

•

each year,

By Church

Board

file

the

quarter

should

that

paper

net

the second

pay-as-

basis need not estimate their

year

argument in the matter.

in

conform

possible

as

the law makes two
provisions. First, farmers

special

'

The

fair

as

of

Oct.

on

repeals

measure

sions

printing its net paid cir¬

culation

ply."

farmers,

Chicago for $500,000.

Sued For Accounting
Of Funds

system

amount

Senate

voice vote.

a

existing
provisions
excluding
Chinese,
apply immigration quota provi¬

quarterly
should be

paper

the

the

11, passed the House
The

recommenda¬

quarter of 1941, plus 3% for waste,
plus the percentage of increases

expected

you-go
to

It is expected that the commis¬
sion soon will set the date for oral

E.H. Rollins & Sobs

of

could not

come

ratif'ed the civil suit filed recently
- the Federal District Court in

in

each

complet¬

was

when

legislation, which had been

laws to

paid circulation in the
of 1942 over the
fourth quarter of 1941. From this

of

The

from

base deductions shall be made to

hazards

conditions

ether

used

fourth

to estimate his in¬
until most of the
crops were
gathered and sold.
*
"; :
;
'
;

app ov

acti°\ in .^ttainin|
assert its rights and

to

and

the

quota for
"100%
of

26

recommended by President Roose¬
velt in a special message on Oct.

in the form Of resolutions

was

citizenship

Nov.

on

approved it by

news¬

from

we

The

of its

the farmer

wages from which

agriculture, the farmer

annroved

wmcn

place,

no

■

be withheld. In the second

can

weather

atfer^the
of

first

place, because of

resolution

a
a

la

the

usually has

the

tax

Moore

cunicuiieu

of

'

.

actions," he said.

the

was
r>was

tti

of

Chinese
ed

intend¬

was

194,000 tons of

save

.

a

exclusion acts and extending nat¬
uralization
laws
to
allow
the

print. He said the cut would range
nothing for smaller news¬
papers
to as high as <28% for
larger publications. United Press

In¬

He thus repudiated, in
effect, the come and Victory Tax", similar
Bolt, Nut and Rivet Manustatement signed by the Rev. Dr. to the
declarations filed by nearly
facturers, ~ said his own nidus y
(^ q Cram, general secretary of
12,000,000 persons on Sept. 15.
was principally concerned in
be(t^e |3oar(j) ancj Mrs> jna j)avis
Commissioner" Hannegan in his
mg left financially healthy
a
e
jruit0rl, treasurer of its women's advices said:
the war.
section, to the effect that their
"By the very nature of his busi¬
"We all know we have to pay a
dealings with Mr. Rawls were sat¬ ness, the farmer could not be
put
lot of taxes," he said, "but nobody
on
isfactory.
quite the same basis as the

going to get in the reconversion.

Congressional
action
on
the
legislation repealing the Chinese

recom¬

from

tute of

knows what kind of

in

newsprint in the first

of

the recommended' cut

pay¬

Hannegan explained that Dec,
15 will be the first date
by which
farmers will be required to file

"Declarations

23 %

ing and Publishing Division, said

er

transactions.

Repealed by Senate

of

Advisory Committee Harry M.
Bitner,! Director of WPB's Print¬

that

tax

reduction

Chinese Exc9iisi§n Act

>

- i

mended to the War Production
Board by its Newspaper
Industry

declarations of

or

of

use

quarter

estimated tax to file, Commission¬

*

j

on Dec.

said

limited number of

a

ments to

Bishop Arthur J. Moore, of AtYork 'TIerald Tribune" of Dec. 6, lanta,
president
of
the' board,
testified before Richard
which also said:
Townsend,
p,A,inlo,I trial examiner, that he was "not
Herman H. Lnrd, of
This

tax

ComRevenue

Internal
Hannegan said

further

total

special

a

announcement

record to permit introduc- Marmers

tion of

Association of Manufacturers.

is

of

Robert E.
]

1

,5?eJ^,!lTiLPnfCethpS National' of tiie
convention of the National

Groups

15,. 1943

I missioner

^

nual

A

jdate for American Farmers,

permitting the set¬
may
finance
its

reconversion.

own

Urges Further Cut
In Newsprint Use

Date For Farmers

meeting of the National Industrial
5, manufacturers' representatives ex¬
pressed the opinion that the main needs of industry in establishing
its post-war program are a definite Federal policy as to termination

Council in New York

Filing

Thursday, December 9, 1943

was

great

as

War

Loan, their
previous high mark in helping the
Treasury. Their performance in
the

Third War Loan
brought up
$101,538,000 the amount of war
financing for which these institu¬
to

tions

1943.
that

have

been

Significant
45.5% of it

month alone.

"Sales

to

responsible
was
was

in

the

fact

done

last
.

;

the

public by these
community thrift and home fi¬
nancing. institutions in the two

increase States amounted to
$15,492,632 in
the Third War Loan, or 133% of
were noted in our issue of Nov. 25,
Wages subject to withhold¬
Exchange Commission in Phila¬ TIME
GERMANY
the
CRACKS ing totaling more than $2,700 if page 2129.
April performance.
Mean¬
j
•
delphia on Dec. 6.
BUSINESS WILL CONTINUE AS single, or $3,500 if married (mar¬
while the associations' own pur¬
The
hearings on proceedings
ried couples must file
declarations was
IS.
FROM
THE
TIME
THAT
instituted by tbe S. E. C. were
required to file an income chases during the period of the
if such wages
of husband and tax return for 1942 and who ex¬
Third War Loan were
actually concluded last June in GERMANY CRACKS THROUGH wife together exceed
practically
$3,500).
pects his wages subject to with¬
Chicago. but the Board of Mis¬ DECEMBER
31, 1944, WE MAY i
triple their acquisitions in th»
"In addition, the declaration is
holding in 1943 " to be less than
sions recently asked a
reopening SEE BUSINESS CHAOS.
required of any one person who
previous drive.
record

before

the

Securities




and

dividual
"2.

married

person).

for

capital

\Volume 158

Number 4236

THE COMMERCIAL & FINANCIAL

Central Gold Reserves Slightly Lower In

CHRONICLE

Lend-Lease Food Sent

2345

N. Y. Commerce Mi

(ndusiry Ass'n Cites Civic
Achievements In Fast Year

1843—Production Drops From 1940 High In 9 Dos. Of 1943
The October number of the
The Foreign Economic Admin¬
League of Nations Monthly Bulletin
Statistics; which has just been published by the League Mission istration issued on Nov, 17 a re¬
at Princeton, N,
J., contains, in addition to the regular tables, special port on lend-lease food shipments
tables showing World Production of
for the first nine months of
Gold, 1933-1942, and Recorded
1943,
Central Gold Reserves at the end of
that
beef
and
veal
December, 1929, 1935-1942, and showing
at the end of
June, 1942 and 1943; expressed in millions of 'old U. S. shipped amounted to 1.3% of the

Direct and indirect
savings to New York City's taxpayers of $54,in general of more than
$9,000,000 from new
payrolls, on which at least 3,000 New Yorkers found
jobs, and increas¬
ing contributions to the war
effort, can be credited to activity of the
Commerce and Industry Association
of New York,
according to the
annual report of the
Association's Secretary, Thomas Jefferson
Miley,
submitted on Nov. 27 to the Boarct<»

of

000,000; benefits to trade

.

gold

dollars.

The

Bulletin

country's supply, whereas in 1942

con-s¬

tains the

it

following:
AA'/V'' a ; a. are available for 'Soviet Russia's
production of gold, out¬ production; private estimates for
side the U. S. S.
R., reached a 1937 ranged from 136,000 kilos (4,record
figure of 1,130,000 kilos 400,000 ounces) to 168,000 kilos
World

(36,300,000 ounces) in 1940, de¬
clining to about 1,120,000 kilos
(36,000,000 ounces) in 1941, and

gold

to

sia

estimated

an

1,000,000

(32,000,000 ounces)

in

(5,400,000 ounces).
The

kilos

1942.

The

3%.

10,246,000

of

1943.

the

whereas

But

of these

reserves

in

1929

the

in

no

tically all countries, whether large tries, part of which had actually
or small
producers, for which data been transferred from the Conti¬
are
shown; there was a'drop of. nent. The following table com¬
in the United

Australia;

and of 2%

Africa.

States, of 23%
9%
in Canada,

of

No precise official

for continental groups and

pares,

prippipal

in the Union of South

countries, central
during the war

reserves

gold
years

with those at the end of 1929: C

figures

:

Millions

of

Gold

Old

Africa

1942

1943

' 68

170

250

416

385

—A—

.

Union

v-North

1940

of

South

America

Africa——

,;.A:

.

130

211

375

344

8,684

12,995

13,426

13,226

113

4

3

3

8,571

12,991

13,429

13,223

713

419

405

464

557

405

—

37

4,051
3,900

—•

__

255

208

209

tities

of

Canada

A-

———

SUnited

151...

States

•Latin -America

Argentine

AAA-

—

——_

••

:

,

Brazil

150

Mexico

Asia
v

—V

_____

—;

India

.

__1

.

_

-

A-4-

Belgium

—.U.-A——_

Italy

§United

•.

560L

A

163

27

24

24

434

434

434

25

38

1,435

1,181

1,181

1,181

365

299

293

a

273

Kingdom

710

—_L.

587

,,

Oceania

189
413

A„A

-A

117

95

198
487

15

15

ply,

U.

ex

S.

S.

R

10,246

*14,850

Excluding Spain,
(Partly estimated,
•exchange equalization .funds amounting to:
of—

--•United

1938

States

.United

47"

—•

Kingdom

1939
92

"448

t" 17,004

195

$282

—

"Sept. 30.

28

10

tMarch 31.

of

118,016

117,956

t52
"89

/

Palestine

__

Egypt

'

production

in

the

United States in September stood
124% above the 1939 level; com¬
was

production

by 654% in the transport
/equipment industry, by 325% in
up

the

engineering industry, and by
about a third in the mining, tex¬

tile

and food

industries.

In

note

A

181

Switzerland

.

Portugal

133

United

States

!

122

125

$124

120

125

116

________

South

129

1122

119

^

Australia

167

129

______

Kingdom

11140

129

—

United

Union

159

Africa

:

1939

level.

?t oL aolJ:

!

quarter of 1943.
the

upward

Zealand

"Latest
30.
*

$May

"March

base

tember.

1939

data

31.

117

1943.

28.

30.

Note—Cost

100

was

of

and

living base, Jan. to June,
except in Turkey where

level
land

in Australia
occurred

and

Zea¬

rose one

after

the

June

and

-

New

number

table

of

the cost of

months.

and

the

rise

the end of

a

1942

that

based

not,

Dec.,

and

level

and

or

10.6%

United

-

A




quar¬

living indices

official

on

black

in

Argentina,

prices

take

market

and

into

ac¬

which

is

German-controlled

countries.
In

the United

posits
'

in

the

weekly

reporting

member banks of the
Federal Reserve System fell

during Septem¬

Loan

•>by

Drive,

over

14%.

by

of the Third

War

$5,120,000,000

or

Tuttle

headed

mittee
The
in

Corn

or

and

84,000,000,

000,000,

corn

or

14.2%,

products, 295,(game as last

0.1%

or

Wheat

and

837,500,000,

wheat

products,

0.9%,

the

Association
defeat

Leo J.

goods,

indicated

was

were

in

success¬

the

drop of
the City's 400,000"
registered un¬
employed, in a period of nine
months, to fewer than 130,000. Es¬

of

tablishment by the Association of
War Contracts division resulted

Corp.

a

businessess

Citizens'

also
of

tractors, and

com¬

$4,161,700

in

six

315

in

con¬

subcontractors/

More than 2,000 facility lists were
sent out

active

was

of

Activity, Cooperating

the program were 124 prime

"In

the

contracts arranged.

or

line

with

tralization

more

war

con¬

Association's

Research

Director, cuts of $5,266,043
made. In

this

time

the

in

Council

the

As

a
$9,371,000 payroll. Army and
Navy also leased vast office space.

Mayor's

"Toward unity of thought and
A.A.' A'A:',
saving of $35,000,- action among local and national
afforded taxpayers by de¬ groups in achieving post-war con¬

A'-'"'A

veto.

were

action, forAhe first
City's history, the

overrode

Activities.

5,717 Federal employes
were transferred, about
3,000 New
Yorkers found jobs in the agencies
affected,
real
estate - operators
leased 487,772 feet of space
and,
the City in general benefited
by

McDermott, former Direc¬
Budget for: the City, and

the

now

Service

result

a

tor of the

A'--A AA

An estimated
000

was

of

the

the

sales

ditions

proposals to increase
business taxes, the

^Secretary

said.

Association

tion's

Walter

Hoving,
headed the

Director,

in

industry

and

which

can

Committee

Anti-Sales Tax Committee which

represented 50,000 of the City's
business enterprises and 92 trade

Association

and

in

civic

organizations. The ad¬
regarding the report also

stated in part:

of

certain

AAA; /:A'/Aa''*

restrictive

BEW

rulings

effected.

was

year.

is

Dr.

Post

on.

War

-

moved into its

Fred

I.

Kent,

Director, is chairman,

composed of 24 leaders

agriculture, business, education,
"The

caliber

pf

the committee

the thoroughness with which

and

it is functioning indicate that its
contribution to the vital work of

by

Results

national in scope, Mr.

now

finance and industry.

"Through
the
Association's
Foreign Trade Committee, easing
the

it

and

and

commerce

thrive, the Associa¬

Planning has
second

planning will be
standing," Mr. Miley said.

post-war

Miley

out¬

State And Local Committees To Supplement

Federal Veterans' Employment Services

A

State and local

clearing house committees to supplement Selec¬

tive Service Local Board and the United States Employment Service
veterans' employment services, and to centralize job-placement serv¬
ices by other interested groups, will be set up the first of. next year,
was revealed on Dec. 1
at the weekly Business Forum under the

it

auspices of the Commerce and Industry Association of New York
^-r*-

and broadcast
The

Walter

will

City

station WMCA.

over

Commerce

Association

and

Industry
represent New

commerce

groups

on

the State

Walter W. Price Dies

Committee, Thomas Jef¬
Miley, Association's Sec¬

ferson

W.

retary,

Forum

moderator,

dis¬

Price, limited part¬
ner
in Abbott, Proctor &
Painfe,
14 Wall
St., New York City, died

closed. Col. Allan M. Pope, Asso¬
ciation Director and President of

at his home at the

the First Boston

age of 77.
Associated with Wall Street for

Mr.

years,

periods in his
paper

Price

career

reporter,
as

a

Francisco

1897

at
was

various
a

news¬

before

"C$l|"Hfrom 1894
beeqming

a

mem¬

of

Price, McCormick and
Company, cotton brokers. From
1904 to 1922 he

E. and

C.

and
a

of consumer

Budget", as the result of data
presented to the City Council by

York

firm,

New

plant manufacturer

proposed
tracts for the City, the Associa¬
power plant authority bill to erect
tion also succeeded in
having more
municipal power plants at a cost
war agencies
assigned here under
of $50,000,000, the
Secretary said.
its two-year campaign of Decen¬
In the City's annual "Battle of the

compared

or

with 0.3%.

ber

small

on

the subject of "Jobs For Soldiers'

year).

to

to

:

Dried peas,

San

contracts

war

City, particularly in the field

the

ful

conducting the campaign.

the

84,compared with

compared with 6.0%.

55

of

proposed
price, Mr. Miley xsaid. Charles He

were

Canned
vegetables; 59,100,000,
1.0%, compared with 0.8%. A
Dried
beans,
228,500,000,
or
10.3%, compared with 5.0%.

was

States, sight de¬

plant

Edison

more

month

juices,

Dried
fruits,
207,900,000,
21.1%, compared with 15.7%.

1942.

Spain.

ber, the month
.

the

in

therefore,

the

important

in

month available in

1943, generally in the third
ter:

and

2.5%,

or

1.70%.

of

search Bureau showed the
plant to
be worth about half the

vices

reporter for the

do

The

for '

illustrates

countries

and the latest

622,300,000,

year.

He worked

are

living between the first

half of 1939

last

sailor
soldier,
jpplitigal leader.

count

preceding

following

200,000,
.

in Spain 100 in July,
Zealand 100 in

The above cost of

point' in'each of

one

butter), in
equivalent,
3.2% of supply,

1938,

Zealand

Denmark

change in Canada, but
point in the United States

falling

of

stock broker and

no

two

9.6%

milk

fruits

the

Island

BEW

prior

in known repeat orders for small

feat
or

Kingdom and has actually fallen

The cost of living in September

showed

small

below

between

August.

New

they

accord¬

1,718,200,000,

or

$14,500,000,

the

move.

York

<

the

Staten

with

municipal operation." Facts
furnished by the Association's Re¬

up

100,
in

show a continuing rise in
Asia,
For
China
(Chungking), the
particularly in India. In Germany,
cost of living
index, base 1939=
Denmark,
Norway, the United
100, stood at 2249 in August,
1942,
Kingdom, Sweden.:'and Switzer¬
and at 6074 in
July 1943.
land, wholesale prices have, ac¬
It will be observed that the
cost
cording
to
the ; latest
figures,
of living has not risen
above the
changed but little during 1943. No
change in the wholesale price- December. 1942, level in Sweden,

New

of

Canned

tNov.

llApril

31.

1939, equaled

available

$Feb.

in

112

106

available

1942

Relatively

2,911,700,000,

$113

107

:__

month

100

108

109

Lj:

Colombia

the middle of the year; indeed, a
drop of 13% was registered in
Costa Rica between May and Sep¬
Latest

100
113

Germany

appeared
around

23.1%.

For

compared with 3.4%

116

________

(see note)___

Uruguay

In Latin America,

to be somewhat slowed
up

___

Zealand

Argentine

during the third

movement

—

New
New

-

Wholesale prices
remaified^practically unchanged in Canada and
the United States

Canada

are

21.2%, compared with 22.5%.

149

142f

142

;

civic

for

of the available

pounds

151

:145

Mexico

ada, industrial production reached
new high point in
August, 3%
above July and 163%
^boye the

11.4%

supply.

fluid

155

146

_

:

Japan

a

155

150

___

fluid

this

Dried eggs,

164

157

___

the

compared with 10%.
Edible fats and oils,
733,800,000
or
13.9%, compared with 13.2%.
Canned
fish,
163,300,000,
or

**200

166

_A

=.

Norway

191

152

—

Spain (see note);
Denmark

Hungary

200

181

;

11235

welfare

of

Association's

of

the

of

country's total supply, com¬
pared with 5.8% shipped in 1942.
All
milk
products
(including

§268

182

__

India

.

cost

milk

year
compared
but
the
amount
of
cheese exported is
substantially
below the
1942
shipments.
Ex¬
ports of cheese through lend-lease

1356

264

___

A-

_

Finland

A

214

(Jewish)'

—

■

340

Sweden

Can¬

*1943

t348

(see

that

all

last,

terms

1942
Iran

Turkey

the

heading

of

milk

42,200,000

10

.

$May 31.

pared with that level

§Excluding gold held by

Dec.31

Chile

Industrial

April 30.

1941

172

tl,023

26

Belgium
France

1940

$As

showed

of the

*

End

evaporated

All meats,

rj

Total

to

port than in 1942, when 3.4% of
the supply was shipped abroad.
Exports
of
dried
whole
milk,
dried skim milk and condensed

with

list

confer
controls

"That appeals for the allotment

achievements, Mr. Miley pointed

our

New

were 3.2% "of our
sup¬
slightly lower rate of ex¬

a

and

-

the

new

the

but "with the

trade

recommendation

to their
issuance. More than 1,500
export¬
ers and importers here
supporter!

:,

pounds, were as follows,
ing to the United Press:

15

Heading

equivalent

512

15

and

American lend-lease food
ship¬
during
the
first
nine
months
of
1943,
in
terms
of

A: 205

297

A..

of

use

Australia

ments

1,588

66

'/ 115 A

Switzerland

the

the

main

to

on

citizens, the Asso¬
increase its value in

of New York."

have

the report commented.

114

180

-

—

A<

mutton

mittee

our

will

fostering

quan¬

goods, are
being exported' under lend-lease,

24

430

i

1,631

_

—__

Sweden

$3,338

97

"2,950

support of
ciation

amounts

amounts of foods which
are
in
short supply in this country, such
as
butter and canned

162

$3,260

97

495

;A;

—

Netherlands

162

"5,230

A'~A-A
A

162

>

•

national

74

162

and

The
report also
lend-lease
exports
products in - terms

were

435

President
of
Intertype
Corp., said he was confident the
record of achievement not
only
will be maintained

The

adopted by the BEW was the ap¬
pointment of an advisory com¬

Becker,

"victory in
opposition resulting
under
reverse
lend- in
the
defeat
of
Mayor
LaA.
A:'
•
'A A
A Guardia's
plan to purchase, at a

from

amount to

$84

23
435

542

Germany

^France

68

28
389

4,566

—

Spain

30

17

333

128,..

.

Japan
Europe '

19

7

731

—,

lamb

received for

forces

209

•

the

over

said.

In commending the
report, the
Association's President, Neal Dow

program

shipped in 1942. Substantial

somewhat

June 30

1938

lend-lease

increase

an

Dollars

—December 311929

of Directors.

pork exports during the
first nine months of 1943 showed

and
In

the

Zealand

38%

our

and

lease."-

and

States, in 1942

prac¬

in

ton

United

Europe

of

as
we
exported to all
lend-lease countries.
Lamb, mut¬

been

45%

located in

were

1%

veal

less than 75%
were
held by the United States
and only 18% by European coun¬

About two-thirds of the ag¬

gregate originated within the con¬
fines of the British
Empire. Pro¬
duction in 1942 decreased in

27%

and

old

18,016,000 millions at the
end of 1942, an increase of some
75%, but was slightly lower, about
17,956,000, at the end of June,

13%, Australia for
Philippines for

over

and

from

—

of

have received from Australia and
New Zealand almost as much beef

/

central

about

(outside the U. S. S. R.) in 1940,
Canada for over 14%, the United
States for

"Since

outside Soviet Rus¬

reserves
rose

-

recorded

0.3

to

'

started," the report continued, "we

gold dollars at the end of 1929 to

Union of South Africa accounted
for
over
38%
of world
output

4-5%,

of

total

amounted

supply,

was

Randolph,
from

member of

a

1922

a

brokerage

to

1934

he

senior

partner of Livings¬
ton and
Company. He retired as
a general
partner in Abbott, Proc¬
tor and Paine

on

July 1, 1938. Mr.

Price had pioneered in establish¬

ing private wires for financial
stitutions

throughout the

States and Canada.

in¬

United

serve

the

as

Association's

sentative.
/

be

"All

Corporation, will
repre¬

AA/A/;>A,-.

veterans/ will

eventually
given all the services available

in

each

near

or

Frank

G.

Veteran's

community,"

Newcomer,

Regional

Employment Represen¬

tative for New York

State of the

he said. The part Sperry
Gyroscope Co., as one of the larg¬
est employers of labor in the New
York City area, is already play-'
ing in its voluntary participation
in
providing jobs for veterans,
year,

cern
as

well

the

Director

of

Selective

said that the reemploy¬

ment division at Selective Service

headquarters here is
ganzied

as

to

be

of expansion to met

volume"

of

now

so

or-

readily capable
an

business.

8,000 had been aided

increasing

More

in the

than

past

welfare
wa3

request

ojf/the War Depart¬
cen¬

tralizing all veterans' employment
in

City

job progress,

ment, it took over the task of

the

York

veteran's

his

Industry Association*" Mr. Miley

McDermott,

Service,

the

as

said, "because in the last war, at

Commission, said.
New

with

the base of the program, he said.
"Jobs for soldiers is of particu¬
lar interest to the Commerce and

Col.

V

by Otis F. PresDirector of Training. Con¬

brey,

War Manpower

Arthur

described

was

New

YorkMCity, In

Association

this

war,

again anticipated

its obligations by putting into, ac¬
tion

a

mittee.

Post-War

Under

Planning

the

Com¬

chairmanship

of Dr. Fred I. Kent, 24 leaders in
the fields of

education,

agriculture, business

finance

and

have been at work for
a

year."

industry

more

than

s'

2350

THE COMMERCIAL & FINANCIAL CHRONICLE
rently being revised.

Individuals' Liquid Savings In Third Quarter

the

figures shown
•
Vs ,*•+.

The

United States.

ttLargely

above, include

to

all

new

passenger

sold

cars

in

purchases

of

automobiles

durable

other

and

although including some debt arising from purchases of consumption goods.
other segments of individuals' debt have been allocated to the assets to which
pertain, viz., saving in savings and loan associations, insurance, securities and
homes.
Changes in the commercial indebtedness of unincorporated business and in

consumers'

Holdings

.

.

in U.

of cash

Loan Drive.

exceeded their

In

high in this quarter.
While additions to
again substantial,' they were less than

new

were

preceding quarter and showed the smallest rate of increase
since the second quarter of 1942.

of

,

therefore,
to

the

nature

subject

are

of

by the Commission from many dif¬
figures, current !data are necessarily
Figures are rounded and will not

the

revision.

to

totals.

addition to

of

quarter

1943

the estimates of saving

and

and

prior periods.

Exchange

(These

Commission,

estimates

Treasury

based

are

—-—Change

—•—

Jan.1940

1941

April-

March

1942

June

Julyas of
Sept. 9-30-43

(Billions of dollars)

Currency and bank deposits'—
Government
Inventories
Federal income

+ 2.2

securities!-

liabilities—

held by

+ 3.3
+ 6.3

* +3.0

less

than

corporations

+ 5.6

+ 1.6

+ 1.3

+ 4.4

+ 4.7-

+.5

.5

+

'

+ 1.8

tax

"•"Somewhat

.7

+ 2.0

+

.3

—

paid

to

the

$Does

$16.9

—

.4

+

.6

26.7

.1

+

.7

+

.7

$500,000,000 of this amount represented Victory

$500,000,000

this

of

amount

represented

taxes with¬

,

withholding

taxes

not

Treasury Department until next quarter.

not

include

purchases financed

by

bank

loans,

estimated

at

somewhat

fore, be well to note again that additions to individuals' cash on
hand and in checking accounts, amounting roughly to $7,000,000,000
and $9,500,000,000 respectively since the end of 1941 (it is estimated
that additions to individuals' savings (and time) deposits amounted
to $4,500,000 during this period), do not constitute saving in the same
sense
as increases in holdings of securities and life insurance, or
debt liquidations, but represent in considerable part only a tempor¬
ary accumulation of funds not ear-marked for investment that may
at

time be diverted into

any

view

of

the

differences

consumption and other channels.
the

between

various

forms

of

In

saving, it is

important to consider not only the volume but also the components
of saving and the significant shifts among them in order to deter¬
mine the effects of saving on the economy during the war as well
as in the post-war period.
As

previously noted in these releases, a substantial proportion
in individuals' saving is attributable to unincorpor¬

of the increase

porated

businesses

accounted

for

as
much of such saving in the
(It should be noted that part of the
increase in cash and deposits of unincorporated business reflects
liquidation of inventories and receivables of unincorporated trade

past

retirement

[net of

of notes

and

accounts

payable].

Although

the

this increase is not known, it is believed to have been
tjian $1,000,000,00(> since the beginning of 1942),

of

amount
not

other individuals.

year as

more

The

atached

table

in

presents

detail

the

estimates

on

which

GROSS

SAVINGS

BY

INDIVIDUALS

1940-1943.

(Billions

IN

of

THE

a

was

$700,000,000 in the cash and deposits of non-financial
corporations, holdings of U. S. Government securities increased by
$3,700,000,000, the highest increase on record. The net increase in
cash, deposits and U. S. Government securities combined,
amounting
to
$3,000,000,000, was at about the same rate as in the first and
second quarters of the
year.
Inventories increased $600,000,000 in
contrast to

decrease of approximately $500,000,000 in each of the
prior quarters of the year.
The increase of $700,000,000 in Federal
income tax liabilities was about the same as in the second

quarter.

other

will be available.

+

saving
tLiquid saving
Gross
1.

•

Wage Increases May Force Rise In
Prices, Says B, F. Fairless, Pres. Of Steel Corp.

In commenting on the announcement of the United
Steelworkers
that the Union 'Is giving notice do

of America

——

and

Savings and

3.

less, President of the United States Steel Corp., on Dec. 5 said:
"We believe in holding the line
against inflation and have prac¬
ticed that sound Governmental
policy to date.
We shall continue to
do so as long as this is possible.^

Private

loan

Government

c.

Total

-

June

Sept.

10.8

11.4

11.9

10.6

29.5

9.2

5.0

+ 11.5

+

3.8

+

3.0

2.7

+

.2

.4

.3

+

.1

.+

-2

.1

9.0

+

2.1

+

2.4

.8

.8

.7

+

1.2

1.8

+

2.4

.8

1.1

1.0

+

2.9

3.8

+

4.9

1.7

1.8

1.7

+

———i.-

U.

S.

savings bonds_^

Other U.

S.

d.

Corporate and

e.

and

1.7

Total

b.
c.
*

—

•—

.4

governments—

—

.1

—

—

.5

—

—

.1

other

—

Non-farm
a.

local

.9

+

government-

State

—

+

+
—

—

+

2.8

+

8.0

2.6

+

.8

+

1.9

0

+

.2

r-

.1

0

.5

+

.3

0

2.9

+

+ 10.1

+

3.0

+

3.4

1.2

'+

2.1

0
.2

—

2.6

+

+

.1

+

.3

—

4.0

+

".2

+

5.2

dwellings:

"If

"Automobiles

and

consumers'

+'

3.0

1.6

.9

.9

.1

+■

1.7

2.1

+

9.3

+11.4

—

b.)

2.5

+

other

1.1

.6

+

.2

—

.2

1.5

+

.4

+

.3

'+

.2

+

7.6

+

1.6

+

1.9

+

1.8

+

2.8

+

.7

+

.2

+

.2

0

.3
0

durable

classified

—~—

"Includes unincorporated

business saving of the types specified.

Does

not include

corporate or government saving.
tGross
durable

§Does
chases
brokers

saving excluding purchases of homes
goods.

of

not

include

by bank
U.

and

S.

net

loans.

purchases

In

the

Government

dealers

and

fiNew construction

properties by
*

as

well

as

of

automobiles

and

other

consumers'

financed

by

third

securities

brokers

quarter

of

amounted

and

dealers

1943
to

it

is

or

by

other

estimated

approximately

that

individuals
such

pur¬

$1,000,000,000 for

$300,000,000 for other individuals,

of

one-

to

Based

on

four-family nonfarm

Department




be

breached

end

employment

our

and

wage

other

costs
as

a

are

result

demands

by

homes

less

net

acquisition

of

of

Commerce

data

on

commodity

flow

cur-

of

each

week.

Most

our

wages

employees receive

of
on

the

basis of rates far in

of the

labor rate.

common

"The

excess

hourly

average

earnings

ica and by the United Mine Work¬

of

ers, we have
than to seek

producing and fabricating subsidi¬
aries, both North and South, has

in

crease

"One
the

Steel

17

compensating in¬
prices.
*

the many demands

Workers

ported to be
of

other

recourse

no
a

steel

of

cents

Union

is

of
re¬

increase in wages
hour for most em¬

an

an

ployees. This would increase

our

the

labor

common

hour

rate

in

district from 78

to

95

cents

cents

hour, an
approximately 22%.

of

"Since

the

present

an

is alleged to be

all

wage

commencement

of

national

in

earners

steel

our

risen from $0,853 an hour in Jan¬
uary

1941 to $1,159

hour in Oc¬

an

tober 1943, an increase of 35.9%.
During October 1943 the average
weekly earnings of all such wage

embracing about 185,000
employees, was $50.42 per week,
earners,

as

compared with $33.01

during

January

increase

week,

in

or

1941.

week
is

an

in

52.7%

per

double

than

advance

per

This

of

wages

more

reported

emergency,
the increase in labor rates within

an

a wage
increase of
hour, after including

which must

ensue
therefrom, will
approximately $141,000,000 k

to

the

costs

of

the'

total

employment

Steel 'Corporation.
This estimate takes into consider¬

ation only one of the many report¬
ed demands of the United Steel¬
workers

Union.""'

Steel

'*

Workers

Ask

17-Cent

>

;

Fhilip Murray, President of the
Congress of Industrial Organiza¬
tions

and

Workers

of

of

the

United

America,

Steel

Dec.

on

-1

announced that formal requests to

contracts

reopen

steel

companies

this

with

will

the

be

485

mailed

week

asking collective bar¬
gaining conferences to start Dec.
13, according to an
associated

The

union's

wage
and policy
adopted a proposal to
"Little Steel" formula

committee

the
by demanding

scrap

wage

increase of

over

a

hour

an

the present

the

the

cost

of

living index during this same'pe¬
riod.

Part

casioned

of

this

increase

by time and

a

is

oc¬

hiring rate, a guaranteed
weekly wage and other changes.

Approximately
steel workers

are

500,000

^

basic

affected.

Canadian Business

'

Continues At High Level
The

Bank

current

of

Montreal, in its
Summary,

"Business

dated Nov. 23, reports a sustained

high
The

level

of

bank's

business

activity.

reports the

summary

following:
"The

latest

review

minion Bureau of

economic

covers

the

first

three

of

the

Do¬

Statistics, which
conditions

quarters

of

for

the

year, asserts that, despite recessionist tendencies in certain lines
in recent

months, the level of

pro¬

ductive activity in Canada
during
1943 has been higher than ever

before in her history.
with the

Compared
period of 1942, the

same

official index of the physical vol¬
ume of business rose from
199 to

233.3, a gain of more than 17%.
The wholesale price index at 99.2
was

4%

up

or

more,

while-in¬

dustrial production reached

nearly
advance of 21%. Mineral
production showed an index gain

270,

an

of

26% and manufacturing pro¬
duction almost 23%, the index be¬

ing just Under 290. Electric power
consumption was up roughly 10%.
"Latest

half pay

available

employment

figures reveal some slackening in
Corporation has kept for overtime.
full pace with the advance in the
"What
has
happened to our the upward pace. There was a
cost of living index. On Jan.
1, steel prices between Jan. 1, 1941; further rise in industrial employ¬
1941, our basic common labor rate and the present time? Practically
ment with the coming of Septem¬
in the Pittsburgh district was 62
nothing. Prices for major steel,
ber, but it was considerably under
cents an hour;; this was increased products
today are the same as the
to 72V2 cents ;an hour in
April 1, published prices of 1939. A ceiling the gain recorded in any recent
1941 (when There had been little on steel
prices at such level was year at the same date. The more
of

Steel

no

recent increase

living),

creased

mon

25%

to

and
78

was

cents

in

the

cost

further
an

hour

in¬
on

16,

1942. Such hourly com¬
labor rate is today
nearly
in excess of what it was on

Jan. l, 1941. The U. S. Department
of Labor reports an advance in its
cost

of

living index of approx¬
imately 25% between Jan. 1, 1941,
and

"Increases

which

established by OPA in April 1941.
While our prices for steel prod¬
ucts in general have not advanced,
our

costs have gone up most sub¬

stantially since Jan.

1,

creased

alone

labor

rates

1941.

In¬

have

added about $135,000,000 a year to
our

total

employment

costs

limited expansion is attributed in

part to
in

a

manpower

some

war

total of

1,870,836

have

been

hourly common labor
rate, although in full accord with
the reported advance in the cost
of living index, tell only a small

1,868,542

resulting
greater

major

capacity,

economies

from

with

such, suits

production, has been a
in enabling us to

factor

date

to

costs

and

absorb
leave

these
a

additional

small

balance

Notwith¬

ing establishments (13,934) gave

employed,

full

industries.

standing these factors the report¬

throughout the Steel Corporation.
Building up our manufacturing
to

scarcity and

part to production changes in

operations

the present time.

made in our

non-individuals.

"Purchases.

of

Feb.

goods

ttLiquidation of debt, not
elsewhere

to

the United Steelworkers of Amer¬

or

fip,urqhase
r
Change in debt-1
Saving (a. minus

is

to be further increased

the

reserves:

insurance

c.

line

breach.

9.9

3.0

^Securities:
a.

b.

5.

March

38.7

4.0

—

—

the

part of the real wage story. The
by the Union, the Steel Corpora¬ important consideration is what
tion is certainly entitled to ade¬ does
the
average
steel worker
quate protection against the fi¬ actually receive per
hour^ and how
nancial consequences to it of that much does he take
home at the

the

pension

b.

4.

1942

25.0

+

deposits—
associations

insurance

if

But

increases in the cost of living.

1941

,—

bank

and

Insurance
a.

reopen existing labor
producing companies, Benjamin F. Fair-

contracts with various steel

The justification

15.8

—

that

cents

all the adjustments and increased
Social Security and pension costs

78-cent

Steel

July-

saving by type—

Currency

2.

—

timated

17 cents

April-

1940
Gross

engaged in the manufacture
fabrication of steel. It is es¬

and

subsequent releases it is planned to present estimates of cor¬ Press
dispatch from Pittsburgh,
saving in considerably more detail.
The addition of these which added in substance as fol¬
of saving will, of course, give a much more
adequate lows:

advance

-1943—
Jan.-

inevitably follow in
subsidiary companies

other

our

forms

picture of the financial condition of corporations and their liquid
position.
In this way the volume and more significant components
of the saving of all important
segments of the national economy

an

dollars)

be

salaried

our

Will

creases

a

Pittsburgh

STATES*

UNITED

up¬

"must

scale

Increase

This table shows that while
during the third quarter there
decrease of

basic

the above analysis is based.

granted

are

employees
in the lower salary groups. Cor¬
responding wage and salary in¬

$300,000,000.

ated businesses such

as
tradesmen, farmers, professionals, etc. With
respect to demand depositits (a form of saving in which unincorpor¬
ated business might be expected to hold a relatively
larger share
than in other forms) there is some reason to believe that unincor¬

to

over

Because of the

magnitude of accumulations of cash and deposits
since the beginning of the war, they have received considerable em¬
phasis in recent discussions of the public's saving.
It may, there¬

our

.

but not paid to the
<. ;

in

adjustments

similar

a

year

13.3

(other than banks and insurance companies)

over

$ + 3.7

+ 2,6

.5

+

recession

earners

wage

made

add

+19.9

—

-

Treasury Department until the next quarter.
tSomewhat

.7

+

operating at

now

some

on

17
Level

are

increases,

not

'

—-—

—1943

S.

"If
pay

on

Department^ and

Department of Commerce data).

U.

be

may

ward

by individuals the Com¬
mission again made public-estimates of
corporate saving, exclud¬
ing banks and insurance companies, in the form of increases in cash
and deposits, Government securities and
inventories, and the off¬
setting increases in Federal income tax liabilities for the third
Securities

we

operating rate.

data have been compiled

Because

and,

necessarily add

In

a

foregoing

sources.

estimates

porate

the

in

ferent

accumu¬

and deposits

currency

securities

Note—The

banks, due largely to the Third War
Saving of individuals in the form of U. S. Government

hand and in

reached

securities

Government

S.

on

to

unincorporated business are not included in these figures.
reduction
in
consumers'
indebtedness
to
unincorporated business is estimated
abount $50,000,000 in the third
quarter of 1943.

at

warning that "the magnitude: of accumulations of cash and
deposits since the beginning of the war" do not "constitute saving
in the same sense as increases in holdings of securities
but
represent in considerable part only a temporary accumulation of
funds not earmarked for investment that may at any time be diverted
into consumption and other channels," was contained in the quar¬
terly report issued by the Securities and Exchange Commission on
Now 23, covering the holdings of liquid assets of individuals, in¬
cluding non-corporate business interprises and corporations.
The
report indicates that the rate of individuals' liquid savings for the
third quarter reached a new high for the year, viz., $9,900,000,000.
In its analysis as to the volume and composition of savings, the
Commission states that "in the third quarter of 1943, individuals,
including non-corporate business enterprises, and corporations con¬
tinued to augment their large holdings of liquid assets at the ex¬
tremely high rate of the past year."
"Even more than in the prior
quarter, investment in U. S. Government securities accounted for
the predominant part of the increase in liquid saving and assets,"
says the Commission, which adds:
The rate of individuals' liquid saving (includes unincorporated
business saving of types specified in the attached table) in this quar¬
ter reached a new high for the year, amounting to $9,900,000,000
(this includes saving in Government insurance, mostly Social Se¬
curity funds, amounting to $1,000,000,000).
The increase of $700,000,000 over the second quarter saving reflects a normal seasonal
rise in the rate of savihg as well as an increase in income after
payment of taxes.
In 'the three months, July through September,
individuals added $2,700,000,000 to their cash and deposits, (includes
currency, deposits in checking accounts, and deposits in savings ac¬
counts)', $5,500,000,000 to their holdings of U. S. Government bonds
and $700,000,000 to their equity in private insurance, mostly life
insurance.
They also paid off somewhat less than $200,000,000 of
consumer
indebtedness other than mortgages.
At the same time
they reduced their holdings of corporate securities by $300,000,000.
"As in the previous quarter but to a greater extent, individuals'
lation

indebtedness

as

full capacity. Furthermore, as the
end of the war grows nearer, therfe

The

A

investment

tion,

^

Constitute Savings In Same Sense As Increase

of

end

We canot repeat this opera¬

ever.

The

they

The

stockholders.

our

that road has beeh reached, how¬

consumers'

goods,

SEC Warns That Accumulations Of Cash Do Not

In Security

for

:V'r a,'W;

t

attributable

Thursday, December 9, 1943

are

on

which

the

and

a

women

compares

with

Aug. 1. Important

re-

expected in the field of

labour relations
sions

men

between

provinces."

following discus¬

the Dominion

and

1

Volume 158

:
>•

■'

Number 4236

THE COMMERCIAL & FINANCIAL

Federal Reserve October Business Indexes
'

.

The Board
Nov.

on

25

•

•

,

of Governors

of

•

the

its

monthly indexes
employment and payrolls, etc.
At
available its customary
summary
dexes for
-October,' together with

•

-

.

■

•

Federal Reserve System

Cotton Ginned from

•

The

issued

production, factory
the same time, the Board made
of business conditions.
The in¬
month

a

and

RUNNING

(Counting round
INDEXES

averace

100

=

for

1939=100

industrial

production and freight-car
factory employment and payrolls;

for

1923-25

average

100

=

for

all

other

Adjusted for
Oct.

Total
-

Sept.

Oct.

1943

1942

244

215

"245

_•

Oct.

Sept.
1943

1942

248

218

"265 5

_

263

230

"267

267

269

311

"373

370

165

"182

184

168

138

129

"138

143

134

"135

_______

•Total

"51

65

Residential

"36

35

83

AIL other

"63

89

269

New

185

"48

65

175

"35

35

90

253

4,932

goods

170.2

"232.3

230.7

206.7

1119.6

1122.6

"121.8

122.6

124.5

of

"Includes
the

:>. 1

crops

The

328.3

270.9

x

461.3

366.2

none

X

198.3

177.7

bales of

150

—

goods

_________

140

140

147

151

132

128

"155

143

%

110

115

t

114

"Preliminary

estimated.

or

*;

137

128

■

Note—Production, carloadings, and department store sales indexes based
averages.
To convert durable manufactures, non-durable manufactures and
indexes

to points in total index, shown in Federal Reserve
.379, non-durable by .469, and minerals by .152.

able by

Construction

contract

indexes based

three-month

on

Chart

on

daily

minerals

Book, multiply dui>

:,-v/

Employment index, without seasonal
of

Labor

Statistics.

1941.

Y;Y 1,/;.

moving averages, centered at

Seasonally

INDUSTRIAL

Oct.

V-V\"v''■

Manufactures-

1943

1943

1943

207

214

213

199,
229/-"

202

205

241

186

205

190

Y'

"

Steel__7A~-~Y7

241

--v

-

;

—

Electric

Y

.

189

•

607

•.,

Machinery

593

"454:

;

>"

239

190

:

536

448

567

"774

x;Y-: 284

230

'

Non-ferrous metals & products

t

380
'

284

,;'

;

Cement-

136

'-'K"

:

"123

129

Because of

137

149

145

vAbrasive and asbestos

products-

*'•"

Rayon
.Wool

deliveries

*127

129

Y 186 Y

198

>

258

f "326

321

>Y

"151

150

159

156

156

172

"185

•■■;■. 181

156

"185

v

products
—u.-YY-.

|

"110

•

■

t

-H

"Wheat

flour

Meat

packing

.

Other

130

,

110

Y,

-

•

151

119

.

■: ■j

126

"110

202
151 7

.

Y

Y

81

•

,

Y'
Y

89

"146

_u—•

,;ii

145

■

"117

v_<

..

foods

.

;

"184

>'•"

"143

-

YY 142

111

-

111

"124

,145-'.

"184

J

182"= Vv.

•'

; 138

115

147'

121

■;>;
YY:;

vegetables——
Tobacco

products ———-i-l.J

'

139

,

Cigars
•••-,

;

Other tobacco products—liiyv

:

165

.'148

6

Newsprint production __„_«Y.

Petroleum

and

coal

144 V100

101

163-

'

179

;:-,v 176 Y"

87

Y'
Y'

83

107

'

201

'

/Petroleum refining—-j..:—

"211

,

Gasoline

Y

.

Fuel oil:

'

,•

-

•

..

:

Lubricating oil
Kerosene —i_———

'

Beehive—

"158

Y.

—Y-Y

Rayon_—_——
.Industrial

154

mands

,137

X

156

137

Labor

$

123

113

;

171

166
155

ment

"556

535

395-'

527

"556

'314

"397

...

221

231

Y535

:Y.

395

527.
317

•

190

"223

221

190

304

"390

383

employ¬

,

"235

231

191

v

17

"Aside
cents

Metals
Iron
,

,

ore

or

140

"144

155

,129

117

"127

129

117

among

136

121

"134

136

121

wage

"125

estimated.

125

140

"149

161

176

"223

———

"Preliminary

"136

145

"127

_________———

223

223

"307

351

335

JData

not

yet

available.

FREIGHT-CAR LOADINGS

(1935-39
Coal————

;•

average

140

=

138

195

195

184

191

137

139

167

140

matched

demand

a

hour

in

the

a

all

steel

indus¬

an eye

toward

post-war

conditions,
other things

payment

for

increase for

proposes

separation

a,

.

for closed

plants,

Livestock—-—

"•'

119

Merchandise,
N0te_To

In

l.c.l.

the Federal Reserve

coal

and

169

150

158

209

190

'274

314

260

143

150

153

154

163

64

———

convert

151

144

140

_—

183

149

196

Miscellaneous

63

miscellaneous

Chart Book,, multiply




.

indexes

coal: by

.

56
to

*

66 *

points

66

in

index,

total

an

58

shown

.213 and miscellaneous by .548.

not be

are

granted bj

redistribution

program
ex¬

steel may be obtained through
appeals procedure.

"All

quarter

is

confused

have

opened
schedules in

mill
for

WPB

to

fill.

nage forward into that period.

"Apprehension
over
possible
shortage limiting steel pro¬

duction

has

increased
while

in

eased

pig

iron

steelmakers

the

indications

have

in

total

would

cause

the

industry to make
annual

outlay

of

an

addi¬

approx¬

point

to

con¬

75%
taxes.

of

such

a

payments

wage
are

cost,

made

since
before

ac¬

ing purchases in

endeavor

an

inventory in
slackening."

sudden

case

to

of

Gov. Baldwin

Says

Local Governments
Can Cure
of

Bureaucracy

Governor Raymond E.
Baldwin,
Connecticut speaking before

the

National

steel, which is heav¬
ily in demand for shipbuilding
The invasion craft program is be¬
ing pushed urgently with special
priority assistance in an attempl
to

35th

annual

session

of

the

Inter-fraternity confer¬
Commodore, in
New
York
City, on Nov. 26,
warned
tjiat "we have been vot¬
ence

at

the Hotel

ing away our representative gov¬
delivery schedules for ernment"
and
declared
that
spring and summer by aboul bureaucracy can be cured if local

speed

.

next

two months."

The

governments

American

Institute

Iron

and

Stee;

sponsibility

Dec. 6 announced that

New

York

Nov.

their full

assume

to the
Journal

telegraphic reports which, it had

re¬

people.

The
American of

26, also

on

received

indicated

that the oper¬

ating rate of steel companies hav¬
ing 94% of the steel capacity of
the

gave the following
remarks of Governor Baldwin:

"Americans do not yet fully
ap¬
preciate that if the centralization

industry will be 99.3% of ca¬
pacity for the week beginning

of

Dec.

become

6, compared with 99.5%

one

of

steel

compared

ingots and Hastings,

to

1,734,200

tons

1,711,600
tons
month ago, and 1,686,700 tons
ago,

one

one

government

continues

and

more

more

year ago.

follows:

"Revisions of
with

war

consequent

directed

and

and
a

controlled

we

people
by

bu¬

reaus, boards apd commissions in
a

national

capital,

mately lose
mocracy

our

and

will

we

ulti¬

representative de¬

with

it

our

liberty

and freedom."

one

imately $260 million to $280 mil¬
"Steel" of Cleveland, in its sum¬
lion. The United States
Treasury mary of the iron and steel mar¬
Department would absorb roughly kets, on Dec. 6 stated in
part as
wage

of

and

not

avoid heavy
a

tinued tightness for weeks ahead

weekly wage guarantiee for the week ago, 98.2% one month ago
life of the new
contract, the elim¬ and 98.6% one year ago. The oper¬
ination of geographical
wage dif¬
ating rate for the week beginning
ferentials, and so on. The union Dec. 6 is equivalent to 1,730,700
Steel'

face

supply

cumulated reserves for winter to
the usual extent many are limit¬

in flat rolled

tional

110

may

cess

week

139

fac¬

since under certain conditions

visions

114

some

a

Incidentally, the demand for
output is helping

WPB's

steel

137

.
—

Forest products

in

gaps

first

order books or rolling
schedules until allotment
num¬

139

153

market

on

180

138

193
:■

put

tons

152

many

a

'

Grain————_——■—.—

constitute

accept, but which

demands would shatter the 'Little
formula. The various pro¬

100)

152

167

,"

be

try, the union, with

127

155

145

from
an

earners

140

127

must

by
higher steel prices, is held uni¬
versally through the industry,

304

191

>

costs

"144

.

ex¬

161

383

petroleum

War

"169

112

"134

Anthracite

the

opinion

"158

114

"136

Crude

before
The

166

"223

__iY——.

coal

speedily
Board.

155

%'Y x

Y'-Y'.yY'Y

Bituminous

unalter¬

171

112

wage
.'Minerals—

be

opposed to union demands
for higher wages and other con¬
cessions, which will put the de¬

153

.

consumers

of

importance currently.
On
the other hand, an increase has
been noted by steel sellers in 'for¬

industry is the probability

161

•'

"235

■

One

different nature

ably

109

'Y'

a

no

pressed by B. F. Fairless of U. S.
Steel Corp.,, that
higher

115

steel

steel for civilian

diminishment.

trend of

111

-

~

leaders

cancella¬

as

undergone

122

•

few

place.

cess

205

123

.'-"390

—______

take

"211

111

"394
■

chemicals—Y-Y,••

tions

169

120

.

sheet

cancellations

scrap

"Inventory reductions by.

bers and approval

113

156

-

.v

"169

•*

Rubber—

•

1

Byproduct———

Chemicals

.

Y'YYYY

,

1 Coke———_
Y__—_______—
.

--.t
Y

/

"The
and

magnesium
since Pearl Harbor.

time

any

WPB.

"122

"ii."

122

■

•.

'

'

205

"122

to

next

that steelmakers will

"205

the

likely

labor

the 40-hour week

107;

88

98

Y

months, prompting

in the

;:•>

112

insist

the

136

83

154

'

in

other

101

er
than ever and that the war
production job for 1944 is at least
20%
bigger than that done in
1943.

more,

light, yet

as

appreciable

"113

r

that production is to be
lowered.
WPB insists that needs are
great¬

Y;

to

authorities

138

104

153

Y 201

"205 '

products—..

97

.

.

YY .YYv;',YY':

ward orders' for
civilian items,
which steel companies are allowed

104

93

eased

to the idea that the easier steel
is simply a manifestation

or

obtaining de¬

lars for the War Department alone
are
visualized by certain Wash¬

155

■

117

;

Y
; l".

111

;,96

-

to

come

143

99

148

are

"In steel it appears that the ex¬
of ingots has

140

*

bars,

had

the readjustment in war re¬
quirements and not an indication

tor

149

Y,

delivery

market

being omitted from this report
<•'

to

141

".A-■ t'Y'

136

88

.

"110

v.

97

138

155

in

to map a concerted drive to return

Y- 157./

121

,

■

-

143

YV;93 'YY;:

and products
--Y
Paperboard —_—YiS' ■

v

259

140

101

r

"158

•

,

,

146

'

Yy'i'j73'v

Paper

Printing and.publishing —-lA
'•Newsprint consumption l—_

123

134

,.100

.

i Cigarettes ——•

.

y120 ,-.,Y

"123

\

are

Y'VY-Yv^Y

officials

materialize

154

-Processed fruits and
;

'

118

Y:

174

decline

noted in steel

of

ington

81Y
147

.163

■

"160

Government

96.

.

,

167

"156

which

in

purposes

A break in the general

(V

of demand is

Y

;

manpower-shortage still is tight¬
ening. Contract cutbacks involv¬
ing as much as three billion dol¬

145'

113

"113

Y

;

conditions and the difficulties

war

160

161

137

.

for those
about four months,

of

.

copper continues easier than at
New layoffs at some war goods^

factories have

.120

'

Y 113

:

127 '

80

....

.

147
115

/

,

140

*105

>94

88
164

available

on

and

174

>>•;..

109

rYY t '-A
■f'
x.

143

'

81

Y

:

Y

160

■;•;

107

X
.'Y ;$

products—

manufactured

172

174:.;

151

.

"113

Manufactured food

Y

105

y'V.
>

"

■

'181
.

^ Y Y:

Y>>;,
YVY; X

:

Calf and kip leathers
Goat and kid leathers—^
Sheep and lamb leathers-

;

.156

% Y-V'-L,--.

—.

"Y

for

are

apparent than ever this week in Some
producers find second quar¬
an4 metal-working industries," says "The Iron Age" in ter
schedules
considerably
re¬
its issue of today (Dec.
9), further adding: "Some of the slack created
lieved, despite directives for Jan¬
by military cutbacks has been taken up but in general the relation¬
uary and February pushing ton¬
ship, between supply and demand in steel, aluminum,

258

159

':,K 321Y;

above

the metals

190

-YYt

tonnage.

United States

—

during the month

Cotton

"Diversified trends

167

7 33

"191

150

_______

Cattle hide leathers——.

.

.

,

168
53'

'

174"

"151

.—

Tanning
•

47'

143

Y-;; 194

"326

_____________

textiles

Leather

jY

i

v.; I-:,

products______—

consumption

Y>.

"165

33

125

•

"187

'

and

176

■

112

"120

:

Consumption and Stocks

140

"150

53

the

Slightly Lower—Trends
Diversified—Revisions Disrapl Schedules

567

127

•.i

——

Clay products

Gypsum and plaster products

•Cotton

Y

"132

at

producers

"An indication of the easier
sit¬
uation is found in the attitude
of
the War Production Board
toward

Steel Operations

230

•

145

174

bales

tive

536

-

448
767

118

Y

round

no

Included in

for the time being.

149

Stone, clay, & glass products— •Y;; "172
47
Plate glasslt_f-_--:__——.::

Textiles

133

include

1941.-

186

"115 '

1

•

'

report

shipbuilding is maintained

generally are booked ahead sol¬
idly until May, apart from direc¬

American-Egyptian for 1943, 27,678 for 1942

pendable world statistics such data

"150

*.-«;—•'

Furniture

"•

'''

Y 129

"127•

this

783 for

229

"

products___'__JLi-i \ Y

207

:':

593

YY;

"454

767

'

■■■

in

and

199

189

607

:

380

"774

Transportation equipment

Lumber'

1,842,343

World Statistics

:',c 1942

Y':

239
v

:

'

1942

—Seasonal AdjustmentOct.
Oct.
Sept.

1942

213

statistics

for

846,209 bales.

,

and

2,413,018

eral

384,023
537,377

107,053

cerning imports and exports.

Without

1943

214
202

steeL^——;

Pig iron___

Lumber

521,359

In the interest of national
defense, the Department of Commerce
has discontinued until further notice the
publication of statistics con¬

Oct.

Sept.

made,

markedly in recent weeks. Dur¬
ing the past week bar buying has
October, 1943, amounted
been resumed after the lull
hand in
and
consuming establishments Oct.
31, was 2,203,829 bales, and in public storages and at
bookings have been heavier than
compresses 12,264,332 bales.
The number of active
consuming cotton spindles for cancellations, in the experience
the month was 22,599,426.
of some producers. This
lends col¬

PRODUCTION

Adjusted for
—Seasonal Variation-

Y;:;

Open hearth

658,657

429,054

Cotton consumed

to

(1935-39 average =100)

Iron and

654,957

Y:

adjustment, and payrolls index compiled by
adjusted employment index revised beginning

YYY,,!&;YYy:'Y YY.'Y-Y''. Y'

been

its highest point. Plate

46,585

on

month, of F. W. Dodge data for 37 Eastern States. To convert indexes to value
shown in the Federal Reserve Chart Book, multiply total by $410,269,000,
by $184,137,000, and all other by $226,132,000.

January,

have

528,115

/

residential

Bureau

revisions

459,742

Tgie statistics for 1943 in this report are
subject td revision when
checked against the individual
returns of the ginners
being trans¬
mitted by mail.
The revised total of cotton
ginned this season prior
to Nov. 1 is 9,064,841 bales.
^

JData not yet available.

IRevised.

been

1943;
32,428 civilian
production.
Information
and 27,188 for
from that source is to the effect
1941; also 193 bales Sea-Island for 1943; 614 for 1942 and
2,741 for that
1941.
plates and sheets should be

■

goods

have

shipbuilding, but

536,346

counted in the

160.7

V

in

62,127

16,980
19,180
20,733
bales of the crop of 1943
ginned prior to Aug. 1 which was
supply for the season for
1942-43, compared with 48,626 and 1,969 bales
of 1942 and 1941.

"170.5

There

cutbacks

602,212

2,419,392

—

———

1159.6

eased

68,162

Carolina

Tennessee--

the

only plates
during the past

553,038
310,044

245,872

——

1206.5

137

,

427,849

1168.4

"145

:

349,865

Of

products

weeks.

some

304,822

ne¬

notably an increase in landing
barges, partially at the expense
of patrol craft.
Destroyer escort
building is being pushed and gen¬

—

1230.3

Department store sales, value
Department store stocks, value

•

1,345,325

"121.2

Freight-car loadings_______—_.

figures,

563,288
1,804,290

___1,6571815
•;

Yt

second

15,382

.a—672,248

"170.1

Nondurable

•

3,338
13,027

of

wary

of

production.

steel
not

few
no

1,623
9,394

Carolina—;

Texas

have

169,818

are

buying
utilizing their supplies

are

major

14,394

;

rumors

inventory than
instead

current

609,415

"232.1

goods

Durable

134,317

Virginia-———-——J"

Total

Factory payrolls—;

89,722

14,403

Mexico-.

South

80

*60

"

for

1,252,824

815,189

Mississippi

North

58,591

1,246,841

672'

13,947

Missouri

Factory employment—
Durable

52,577

__—

Oklahoma—

_

•Nondurable

754,875

•

153

Louisiana

312

178

Construction contracts, Value—

:

860,504

\

972,405

.

——800,314

Georgia
Illinois

233

"372

"179

-

_

Nondurable

'Minerals

"8,808,276

899,099

—

consumers

and

ahead
——

M.—_—Y»

uncer¬

time when

a

more

cessary

1941

"10,676,552

Kentucky

Total

1942

products,

psychological factor enters

a

steel

holding

_

—

Florida

Oct.

1943
"248

Y-

"9,930,593

California—

'Manufactures—
Durable

—

Arkansas—

Without
—Seasonal Adjustment—

'? Y 1943

Industrial production-

Alabama—
Arizona

excluding linters)

1943

,

States

ation,
and

and

some

are flying thick as to
possible rad¬
ical change in the
European situ¬

BALES

bales

loadings;

series

—Seasonal Variation-

.

St^e~

,

half

as

a

"Coming at

Number of bales of cotton
ginned from the growth of 1943 prior
14, 1943, and comparative statistics to the
corresponding date
in 1942 and 1941.

a

in

brought

period of
tainty in the steel market.

to Nov.

United

1935-39

cancellations
have

Crop of 1943 Prior to Nov. 14

census

year ago, are as follows:
BUSINESS

2351

report issued on Nov. 22, compiled from the individual
returns of the ginners is shown below:
*

of industrial

comparisons for

CHRONICLE

requirements,
cutbacks
and

He

sugested that

bureaucracy

was

a

local

governments

broad

taxing

delegated

State
to

powers

through

remedy for

for

they

the

and

recover

have

years

the Federal Government.

to

h

Living Costs in Large Cities Advanced 0,4%
Between Sept, fi5—Oct. 15, Labor Dept. Reports

construction volumes
1943, are:

engineering

Nov., 1942 ;
•

Sues To

:

Nov., 1943
(4 weeks) *

,

(4 weeks)

•

1942,

»;* /V

Oct., 1943

■

(4 weeks)

•

November,

for

Amicability Of
Wage-Hour Law

1

Total U. S. constructions-

measured by the Bureau of Labor Statistics' cost
of living index for large cities rose 0.4% from mid-September to
mid-October, due largely to increases in the price of eggs, clothing,
and miscellaneous goods and services,1 Secretary of Labor Perkins

Private construction

30,763,000

construction

576,859,000

Public

and

State

16,647,000

municipal-—

Federal

560,212,000

,

$203,632,000
73,195,000

$193,379,000
47,314,000
146,065,000
14,725,000
131,340,000

$607,622,000

130,437,000
7,373,000
123,064,000

The sixth Federal

on

due

was

"Current

until early in March," said Miss Per-

with continuing decreases

in

and

streets

industrial build¬

roads, 63%; public buildings, 77%;

"in the aggregate the cost of all othfer foods ings, 59%; water works, 59%; sewerage, 63%; earthwork and drain¬
unchanged between Sept. 14 and Oct, 19. There were further age, 52%, and unclassified construction, 55%.../.}/
A}/
/A A-A

kins, who reported that
was

j

In New York and
ceiling prices for coal."

housefurnishings.

for some

prices

in

advances

Seattle, there were adjustments to higher
Secretary Perkins further stated:
;
"This increase brings the rise in retail

index.is

;A.

base date of the Little
"There

cities

ent

Total living costs in

month.

the

over

,

for roasting

Daily-

^ of
as
4%, and beef edged up

A-.A/

Dec.- 7--A-L-

of

time

this
The

/A;

advance." :
.

A; VA/A

Indexes,

.

Ang.

113.12
113.12

115.63

102.96

113.12

115.63

115.63

110.34

118.20

115.43

110.52

98.57

102.96

113.12

115.63

110.34

118.40

115.43

110.70

98.57

102.96

113.12

115.63

110.52

115.63

110.88

98.73

102.96

113.31

115.82

118.80

116.02

111.07

98.73

103.13

113.50

116.02

118.80

116.22

111.07

98.57

103.30

113.70

116.02

119.99

111.07

119.00

116.61

111.25

98.73

103.30

113.70

116.61

111.25

103.30

99.04

116.61

113.89

111.07

119.00

120.33

111.07

119.00

116.61

111.44

99.04

103.30

113.89

116.61

Labor,

111.07

119.20

116.61

111.25

99.04

103.30

113.89

116.61

objections

120.57

110.88

119.00

116.41'

111.25

98.73

103.13

113.89

116.41

that

110.88

119.00

116.22

111.07

98.73

103.13

113.89

116.22

120.55

111.07

119.00

116,41

111.25

98.88

103.30

113.89

116.41

27

120.34

111.25

119.20

116.80

111.44

98.88

103.13

112.89

1942:

May

93.5

100.3

104.3

97.5

100.6

117.20

'15—J——-'
15

100.7

105.0

100.8

100.1

-

___

Sep.

15

Oct.

15—

121.6
126.6'

126.2
125.3

109.9
108.0

104.9
106.2

122.2
123.6

125.9

108.0

106.2

123.6

137.4

132.5

108.0

107.7

126.3

133.0

t

107.9

126.5

A/.-,

1943
1943
1943
1943

15, 1943 to Oct.
15, 1942 to Oct.

15,
15,
Sep. 15, 1942 to Oct. 15,
May 15, 1942 to Oct. 15,

+
+

7.2
+23.4

+47.8

changes

on

and lower-salaried workers

+3.5

the

in

of

+25.7

0.2
1.6
1.6

+
+
+
+

+2.9

cost

2.9
7.0

+ 0.2
+ 2.3
+ 2.3
+ 3.5
+26.4

+10.7

t
0
0
-r-1.7

+32.6

+41.3

+26.2'

based

+ 0.4
+ 5.6
+ 5.7
+ 5.4
+32.1

0.6
6.6
9.2
+13.7

+
+
+

+

1943'

15,

0.4
4.5
5.6

+

15, 1943
are

99.04

103.30

114.08

98.09

102.46

113.70

116.61

110.88

97.78

102.30

131.31

115.82

118.36

109.79

118.00

115.43

110.34

97.00

101.31

113.12

115.63

116.93

109.60

117.80

115.43

110.52

96.23

100.65

113.12

115.63

117.11

109.24

117.60

115.43

110.15

95.47

100.00

112.93

+

5.6
6.0
+15.4
+17.1
+
+

purchased

goods

in large cities.

'

v

by
'

108.70

117.60

115.04

109.79

94.56

•99.04

112.56

t Rents

surveyed at quarterly dates: March 15, June 15, Sept.

$ Changes through Sept.

111.44

119.41

117.00

111.81

99.36

103.47

114.27

117.40

116.85

107.44

116.80

113.89

108.88

92.35

97.16

111.81

114.46

118.41

107.62

117.20

114.27

108.88

92.64

,97.47

112.19

Low

1942

106.04

115.43

112.75

107.09

90.63

95.32

109.60

112.75

1942_.

7,

116.78

107.27

116.80

113.89

108.88

91.77

96.54

111.81

1941-

6,

119.59

108.16

118.40

115.43

109.60

91.77

97.31

112.13

115.82

BOND

YIELD

AVERAGESf

(Based on Individual Closing
u. a.

Corpo¬

•

•••'.

'•

■'

^U

'

*

•.

• -

• •

-J

.

.

...

....i.

.

?

.

•

Bonds

rate

7-__-'_„'

Aaa
V'Aaa

bona

not employed

newspaper are

a

RFC Gets $88 Million

announced
on
Dec.
2
through Nov. 30, 1943, the Reconstruction Finance Corporation had

Baa

P. U.

R. R.

Indus

A

3.13

3.84

3.57

3.00

2.87

3.13

3.84

3.56

3.00

2.87

Britain and Northern

v

2.74

2.88

3.13

3.84

3.57

3.00

2.87

this

3.15 a

2.74

2.88

3.13

3.84

3.57

3.00

2.87

1.86

3.15

3

1.86

A

of

amount,

interest,

3.15

2.74

2.88

3.14

3.84

3.57

3.00

2.87

1.87

3.15

2.73

2.88

3.13

3.34

3.57

3.00

2.87

income

26_____—

1.86

3.14

2.73

2.87

3.12

3.83

3.57

2.99

2.86

to

19

1.87

3.13

2.71

2.65

3.11

3.83

3.56

2.98

2.85

12

1.84

3.13

2.71

2.84

3.11

3.84

3.55

2.97

2.85

1.84

Nov.

3.11

2.70

2.82

3.10

3.83

3.55

2.97

2.82

;■/

1.86

■

Y

,

Ireland/ Of

$84,351,507 consists
dividends and other
the

from

held-

collateral

the loan and $4,207,428

secure

represents the proceeds of the sale
by the United Kingdom of a small
the collateral..

amount of
3.56

2.96

1.81

3.11

2.70

2.82

3.09

3.81

3.55

2.96

,,15

1.82

3.11

2.69

2.82

3.10

3.81

3.55

2.96

2.82

8

1.80

3.12

2.70

2.83

3.10

3.83

3.56

2.96

2.83

1.82

29

Oct.

22

wage
;

.

.

3.11

2.70

2.82

381

3.10

2.82

v."

3.12

'2.70

2.84

3.11

3.83

3.56

2.96

2.84

3.11

2.70

2.83

3.10

3.82

3.55

2.96

2.83

2.81

3.09

1.83

Augf 27 —:_.
,

1.84

3.13

1.88

3.15

-

2.79

3.81

3.55

2.95

2.79

3.87

3.60

2.97

2.82

2.99"

2.86

3.12

2.86

Y2.74

3.61

3.89

,

further said:

authorized

~in

aitipunf'ef $425,000,000 in July,
1941;,,and™$390,000,000 has been

the

disbursed.^ The security for the
of

consists

loan

listed

and

un¬

securities; of, United. States'

listed

2.88

3.15

3.94

2.81

corporations/the capital stock of;

3.19

2.76

2.88

3.14

3.99

3.71

3.00

2.87

41

3.21

2.77

2.88

3.16

4.04

3.75

3.01

2.8b

2.06

3.24

2.77

2.90

3.18

4.10

3.81'

3.03

2.88

3.18

1.98

26

——

29

ran.

2.96

3.08

3.11

was

2.08

26

"'eb

3.56

2.80

2.84

"ThjCnjJ.afn

2.06

30

Apr.

tor.

3.82

2.68'
2.71

3.09

1.82

25

toy 28

November Civil Engineering Oonslruciion Up
Private Work Tops Last Month A1942 Month

V 2,69*

3.10

July -30

The announcement

2.82

1.80

Sept. 24

fun

2.75

3.00

3.67

British-owned
the

of

ment

United

States

assign¬

companies1 and

insurance

engineering

States for November totals

construction by military
side

the

continental -United

volume-in

construction

earnings

the

of

$203,632,000.

This volume, not including

2.08

3.31

2.81

2.96

3.23

4.25

3.93

3.07

2.93

1943

1.79

3.09

2.68

2.80

3.07

3.79

3.54

2.94

2.78

United States branches of 41 Brit¬

iigh 1942_—

2.14

3.39

2.88

3.02

3.33

4.37

4.05

3.19

3.02

ish

1.93

3.30

2.79

2.94

3.23

4.23

3.91

3.05

2.92

ments

2.09

3.32

2.81

2.96

3.23

4.29

3.97

3.07

2.94

1.87

3.27

2.73

2.88

3.19

4.29

3.92

3.05

2.86

engineers abroad, American contracts out¬

country, and shipbuilding,

higher than in the

is 5%

pre¬

ceding month, but is 67% lower than the volume reported to "Engi¬
neering News-Record," and
sponding month last year.

made public

Dec.

on

for the

1

corre¬

The report added in part:

Private construction reached its highest volume

'.'j

ligh 1943
Low

Low

Civil

.

since' October,

1942

1 Year ago
Dec.

1942—

7,

November, ,1942.
eral'

and

1941__

6,

♦These

prices are computed from average yields on the basis of one "typical" bond
,3%% coupon, maturing in 25 years) and do not purport to show either the average
evel or the average movement of
actual price quotations.
They merely serve to
.llustrate in a more comprehensive way the relative levels and the relative movement

a

year ago,

volume
47

to

struction

period in
ago

higher than

volumes when compared with

and

current

weeks

138%

the

is 67%

1942.

the

tThe latest complete list of bonds used In

construction
an

period.
below

a

month ago

issue

of

Jan.

14,

1943,

page

average

brings

the $8,932,207,000

average

basis,

is 15%

under

and public construction, $2,435,285,000, is down 70%

justed for the difference in the number of w.eeks.
are

than in the 1942 11-month period. /




1943

con¬

reported for the 48-week

work, $450,099,000,

ipal work and Federal volume

1943

of $61,391,000 for each of the

On the weekly

Private

11-month'

the

61 and 71%
•

a

year

when ad¬

the

principal of the loan.

-

"The

proceeds of the loan were

by Great Britain to pay for

used

supplies in this country con¬
prior to the enactment
of the Lend-Lease Bills." war

tracted for

i

•

/

:

-

Moody's Daily
The Florida Securities Commis¬
sion

has

authorized

the

State's

the company from doing business
without

A

,

the

a'

license.

license

Commission

Court

it

on

the two Crummer Com¬

cases on
which decisions
handed down by the Court
Oct. 29, ordering the Securities

pany
were
on

to

the

to

issue

a

had

ties

as

a

the

violated

the

a

by

by the
grounds that

State

of

Securi¬

to

refi¬

Inverness

debt

contracting

City

Tuesday,

Nov.

Wednesday,

30

Dec.

244.4

—_

l_i.vi-aLuL-.t-

V-

-244.3 >
244.9

Thursday, Dec, 2

Monday,

245.0

.~z

246.6

Dec. -6_.

246.7

Tuesday. Dec.,7^_
Two weeks ago,-

,

244.8

Dec. 3__—
Dec'. 4

Friday,-

Saturday,

•

Nov. 23

_

244.7

'

without being licensed.

The Court

Month
Year

in

lower, respectively, municipal securities and quashing
a temporary injunction preventing

\

refused to

Company

license

dealer

/

been

on

Act

nance

had
company

had

Crummer

Attorney-General to file petitions
for rehearings in
the Supreme

Commission

State and munic¬

Pay¬

applied first to current
interest and balance to reducing
are

computing these indexes was published

202.

To Rehear Crummer Case

responsible for the decrease in public work.

rhonth's

$2,885,384,000,
of

yield averages,.the latter being the true picture of the bond market.

n

a

ppth State and municipal construction and Fed¬

work^repori
The

is

Public- work declines 11% from October and 77% from

ago.

companies.

insurance

2 Years ago
Dec.

>f

1941, and tops a month ago by 55%, and
year

„

payments
aggregating
$88,558,935 from the collateral se¬
curing the Corporation's loan to
the
United
Kingdom / of
Great

Aa

4—1——"

—

Secretary of Com¬

Jesse Jones,
merce,

2.87

*2.74
2.74

3.15

2_L_

/

Oo Loan To British

2.87

:

3.15

AA 1

fide executive capacity,;
:V; v: ■ /'; ■.. "v;
- / ;■V
-

she' added,

2.74

1.85

—

Corporate by Groups

Corporate by Ratings

1.80

S.

,

a

in

received

Prices)

Avge.

Govt.

Averages

'

_

of

114.27

1943—

•;+.

<

:

114.66

*115.90

1943——

31gh 1942—.

15, Dec. 15.

15, 1943.

com-

'z;-'5

115.42-

120.87

„

1943-r-—

'
.

interstate

in

is

115.4L

117.04

26

Dally

0.5
5.2

+
+

newspaper

Reporters and working foremen

117.2C

111.07

115.82

30

Housefurnish- Miscelings laneous

.

items

indexes

111.62

116.22

118.20

1.86

Fuel,
elec' • .AA
tricity
Food Clothing tRent and ice

All

■

Date—

15, 1941 to Oct.

117.00

118.80

PERCENT OF CHANGE

.

Aug. 15, 1939 to Oct.

119.41

110.70
110.34

MOODY'S

117.6

■

Oct.

111.44

120.41

120.18

ipr.

Dec.

Sep.

-

28

Dec.

117.0

138.2

*.

V

—-v-

25

toy

111.8

124.4

-

"meritless" and
publishing

were

the

business

119.82

110.9
111.4

129.6

123.9

— _

July 30
Jun

that Mr. Hanson's

argued

merce.

101.9

117.8
119.0

15

Aug.

100.4

97.8

Wage

the

of

Division

120.27

2 Years aero

laneous

the

for

licitor

120.28

Low

Miscel-

fur-

nishings

and ice

assistant so¬
and Hour
Department of

Miss Bessie.Margolin,

15
—-

-

Government,

the

for

Replying

118.40

116.61

'

he contended, since
a
newspaper has no control over
the outbreak of exceptional news
events, "it cannot adhere to rigid
time schedules."

110.70

Dec.

116.0

15—

earners

103.13

102.96

98.57

110.70

fan. 29

.

.

,

98.6

15___-.__-_-

Jan.

"These

98.57
98.57

110.70

^///•v-

,

22■

"eb

::.A-

•

100.8

1939:
1941:

Jan.

110.70
110.70

115.43

1 Year ago

Rent

Clothing

Food

All items

.

115.63
115.43

118.20

119.64

High

House-

electricity
•'Date—

■

118.20

118.20

110.34

119.72

-A—.

in

Moreover,

29

1935-39—100°
Fuel

■

110.34

110.34

tor. 26

and prescriptions for
admissions continued

COST OF LIVING IN LARGE CITIES

.

'A

115.63

120.62

medical services, such as

Increases were reported in

15.

charges for hospital care, obstetrical services,
medicine. 'Laundry prices .and motion picture

.

118.20

110.34

Indus

119.91

8

goods and services rose 0.5% from Sept.

"Costs of miscellaneous

:

119.62

P. U.

102.96

98.57

M0.70

115.63

113.12

R. R.

Aaa

,A

...

1243:

rate*

drawn."

Corporate by Groups*

Corporate by Ratings*
>
Aa.
A
Baa

Corpo- •

of

professional

essentially

Oct.

"Higher retail prices for ready-to-wear articles allowed under
plus margin' regulations are reflected in higher-clothing
Almost all the types of clothing which are priced
for-the index were higher.
,
,
• *
/'•'
•'

Oct

Govt.

schools

university

nature, irrespective of the salary

'

.

Sep.

work

.:'v.

5

costs for October.

•

PRICESt

;

32

rewrite men, cartoonists and
feature-writers,
"all performing

19 iwLx

26,^__

'

.

the 'cost

to

+/ = •'-

119.63

''

•

the action
against the

ers,

12

Nov.

supply of oranges in retail markets was smaller in October than in
September, but the average price • remained unchanged over the

15 to Oct.

arc

119.59

-

-

the first of its kind

as

Fair Labor Standards Act, Hanson

Sept. 24

year

month.

averages

119.63

average

for spinach. Carrots rose more than usual at
(6.7%), while fresh apples declined by 0.9%.

BOND

yield

119.63

of cabbage,

19.2%

bage to

bond

and

119.63

in 21 of the 56 cities, resulting in a small
and reversing the usual seasonal
onions, spinach, and sweet potatoes fol¬
the usual patterns, with decreases ranging from 6.1% for cab¬

lowed

/MOODY'S

Avge. Y-

Bonds

'

,

2

over-all

the

Prices

D. 8.

:+•;/

Averages

chickens.

in

increase

also quote: / '

attention to

Calling

(Based on Average Yields)

V: 1943—

,

"Prices of potatoes rose

trend..

nati advices, we

Cincin¬

Press

cited

•

"Meats and fish rose
over

^

Associated

From

journalism as recognition of news¬
paper work as a "profession," and
said that newspapers employ pro¬
fessional workers such as report¬

Moody's computed bond prices
*iven in the following table: A

fresh and frozen fish prices
slightly. Increased market¬
ing of hogs brought prices of all the pork cuts included in the index
down slightly, except salt pork.
A fractional decline was reported
:

r

increased

Con¬

the

to

Moody's Bond Prices And Bond Yield Averages

Birmingham de¬

1%. The range of changes
in food costs was from a decrease of 2.6% in Memphis to an increase
of 1.8% in San Francisco, while total clothing costs were unchanged
in Detroit and Philadelphia and rose 1.2 % in San Francisco.
The
index for miscellaneous goods and services showed no change in four
cities and advanced 1.3%Yih Kansas City.
k
.

Amendments

Fifth

stitution.

mental construction.

.

and in San Francisco rose

0.2%

clined

totalis

November

in differ¬

variation in the changes

considerable

a

was

for

purposes

$3,065,104,000, a total of 69% below the $10,204,255,000
reported for the 48-week 11-month period last year.
Of the 1943
new
construction financing total, $145,588,000 is in private invest¬
ment; $165,678,000 is in Federal funds for non-Federal construction,
and $2,753,838,000 is in Federal appropriations for war and depart¬

level of January, 1941, the

May, 1942, and 23.4% above the
Steel formula.

than in

construction

for

1943 volume to

of butter and meat were lowered by the subsidy,
The
5.6% higher than September of last year, 7.2% higher

now

capital

$21,854,000, and it is made up of $17,854,000 in State and- municipal
bond sales and $4,000,000 in corporate security issues.
The November new construction financing brings the 11-month

prices in the two months
between Aug. 15 and Oct. 15 to 0.8%, as compared with a drop of
1.4% from the middle of May to the middle of August.
On Oct. 15,
the index of living costs stood at 124.4 as compared with 100 in the
average for the years, 1935-39, 0.6% below the level of May 15, 1943,

before prices

New

A

;

contended that such ap¬
plication would be unreasonable,
arbitrary and injurious discrimin¬
ation in violation of the First and
Tenn.j

Capital

New

s

Circuit Court

at Cincinnati was re¬
quested on NOV."30 to reverse,a
ruling that the Fair Labor Stand¬
ards Act
(Wage-Hour law) ap¬
plied to newspapers.
Elisha Hanson; Counsel for the
Sun Publishing Co. of Jackson,
of Appeals

Nov. 23. "An increase ofn0.6% in food prices over the
November volume in the various classes of construction com¬
largely to a 7% seasonal rise for eggs,
she said. pared with November, 1942, shows gains in commercial building qnd
OPA regulations provide for lower egg prices from Nov. 8, large-scale private housing, 24%, and in bridges, 46%.
Losses are

reported

on,

Civil

October,- 1943, and November,

Retail prices as

month

Thursday, December 9, 1943

COMMERCIAL & FINANCIAL CHRONICLE

THE

2352

an

a

ruled

that

this

contract

was

"exempt, transaction" and that
license

was

unnecessary.

*

1942

ago.

ago,

244.8 '

Nov.

239.9

High, Dec.. 22____,______
Low, Jin. 2_-—

1943

233.2

Dec. 7-_i____.—

High, April. 1
Low, Jan.

:

2__u.___Y__L_L_

i

"

220.0

249.8
240.2*

Volume

158

Number 4236

THE COMMERCIAL &

The Solid Fuels Administration for War, U. S. Department of the
Interior, in its latest report, states' that the total producion of soft coal
in the week ended Nov. 27, 1943—Thanksgiving Week—is estimated
at

12,450,000 net tons,

decrease of 250,000 tons from the preceding
week.
It was, hQwever, an increase of' 2,584,000 tons over the corre¬
sponding week in 1942.
Output for the current year to date was 0.1%
below that for the

a

period last year.

same

The U. S. Bureau of Mines, estimated that the total production of

When compared with the output in the
corresponding week of 1942
there was an increase of 98,000 tons, or 8.4%.
The calendar year to
date shows a-decrease of 0.9% when compared with the same
period

■

11-27

Commodity groups—
All
Farm

increase of 12,700 tons when compared with the week

an

Nov. 20, 1943.
The Quantity of coke from
creased 800 tons during the same period.

beehive

UNITED

V

STATES

PRODUCTION

(In Net Tons—000 Omitted.)

"

COAL

-—

Bituminous coal

Nov. 27,

and lignite—

Total,

incl.

Nov. 20,

1943

fuel

mine

Chemicals and

„

giving Day, weighted
ESTIMATED

a

528,350

V; 1,899

;1,458

{Average based

5.8

on

1942

'

...1:,

1937

Nov.

:(In

Net Tons)

V:

:

122.2

0

—0.8

+ 0.2

+ 0.8

105.0

103.6

118.4

—1.3

—1.3

97.2

All

commodities

farm

97.2

97.2

97.2

96.6

81.7

81.6

81.6

81.6

♦lOS.B

;

;

79.7

♦lOS.S

0

,

0.6

*103.8

103.9

0

0

113.0.113.0

113.0

112.8

110.2

0

+ 0.2

+

2.5

100.4

100.4

100.4

99.5

0

0

+

0.9

104.2

104.2

104.2

104.2

104.1

0

0

+

0.1

93.0

93.0

93.0

92.9

89.9

0

+ 0.1

+

3.4

m.i

.....

111,3

111,7

111.8

103.8

—0.2

—0.6

■■+

7.0

92.9

92.8

92.5

0

+ 0.1

+

0.4

* 100.3

*100.3

99.7

0

0

+

0.6

'

than

j

0.1

*98.6

*98.6

97.8

0

+

♦97.5

96.1

0

+

v

Penn.

■"Total

§Nov. 27,

-

,

.

anthracite—
incl.

coll.

1943

fuel_

Nov. 28,

1943

Nov. 27,

-1942

Nov. 28,

1943

1,261,000

1,207,000

1,163,000 54,937,000 55,463,000 66,448,000

1,211,000

1,159,000

By-product coke—
States

total.—

1,247,900

1,235,200

total—

States

170,300

169,500

1,211,500 57,525,700 56,562,100

*91.5

*97.5

In

1.5

♦Includes

£ Revised.

-

-

-;

,;

.

7,220,000

'

,

ESTIMATED WEEKLY PRODUCTION

7,558,200

6,102,100

;,

.

OP

_.

_;

COAL, BY STATES

■

(In

.

(The
ments

Thousands

of

Net

Tons)

,

current

and

weekly estimates are based on railroad carloadlngs and river ship¬
subject to revision on receipt of monthly tonnage reports from district

are

and State sources

or

-Week Ended
Nov. 20,

State

J;

Nov. 13,

Nov. 21,

Nov. 22,

Nov. 20,

average

1943

1943

1942

1941

1937

349

367

323

246

409

5

5

6

5

2

**

86

•+

55

94

93

82

100

Alaska
Arkansas and Oklahoma
'

Colorado..

179

Georgia and North Carolina-

145

1

Indiana

1,440

608

470

—

Iowa

L--

50

—

193

960"

566

395

536

is

128

97

319

294

227

193

218

32

30

20

33

*+.2
:+ H3

7

;■>+ ?

'

i

73

713

30

99

:

175

.X

30

686

.

and

1,851

132

145

152

**35

■

492
..

6.

5

7

146
.

.

122

115

428

390

26

•West Virginia—Southern

1,815

tWest Virginia—Northern
Wyoming
:

1,002

117

V.

bituminous

nite

__

386 i

,.r.

19

100

«

82

340

37

»

1,516

on

the

and

lig¬

476

884

527

159

197

156

124

184

1

1

ft

1

*♦5

,

11,270

11,721

9,006

8,231

10,878

1,207

1,084

1,165

907

1,029

1,896

12,354

12,886

9,913

9,260

12,774

the

B.

13,907

&

O.

on

the

N.

&

W.;

C. & O.;

Virginian;

K.

in

& M.;

B. C.

&

G.;

records

District
of

the

Bureau'AP* Mines.

HAverage

♦♦Alaska, Georgia, North Carolina, and South
States."
.

ttLess

than

1.000

vi

weekly

Dakota
•

,

for

rate

included

with

entire

■'

■

'

r

Whslessfe tamily Index Usidianget!
During Week Ended Nov. 27, Labor Dept. Reports
The U. S. Department of Labor announced
Statistics' index of commodity

on

Dec. 2 the Bureau

of Labor

prices in primary markets
for the last week of November remained
"unchanged at 102.6% of
the 1926 average.. Few price
changes were reported.
Quotations
for certain foods were
slightly higher while price changes in farm
product markets were mixed, with some weakness in the livestock

all-commodity index

was

■>■'.'- :'
fractionally lower than at this

"Farm Products and Foods—In the farm
products group slightly
higher prices, for - grains were-counterbalanced by lower prices for
livestock with the result that the group index remained

unchanged

at last week's

level,. Quotations for wheat and barley advanced and
bats and rye declined.
Although prices for livestock in general
dropped nearly 1% during the week, the rpovement was mixed.
Calves, cows and hogs declined while steers, sheep and live poultry
at Chicago advanced.
Higher prices were also reported for eggs in
certain eastern markets, for apples,
onions, potatoes and wool.
Cot¬
ton continued to decline.

'

"Average prices for foods again moved
stronger markets for fruits and vegetables.
advanced nearly 5%.
industrial

continued

tions in prices for sheepskins

in

volumes for

the

number

the

1942

months of

this

shipments totaled

10,678,000 tons.

At that rate this

.-total jay. about

exceed, the 1942

10%.

Hot-rolled

(Carbon steel bar shipments in
first, ten months

of

(4 days)
$36,523,000
1,294,000
35,229,000
1,592,000

$103,143,000
3,638,000
-t-99,505,000
3,853,000

—

municipal

Dec. 2,1943
' (5 days)

$52,181,000
7,787,000
44,394,000

-;

3,814,000
40,580,000

;33,637,000

classified construction
groups, gains over the short pre¬
are
reported in all classes of work except public

buildings.
Increases over the 1942 week are in
sewerage, bridges,
industrial, and commercial buildings, and earthwork and drainage.
for

the

week

in

each

class

of

construction

water

are:

works, $540,000; sewerage, $1,018,000; bridges,
$1,128,000; industrial
buildings, $1,415,000; commercial building and large-scale
private
housing, $4,983,000; public buildings, $27,730,000; earthwork and
drainage, $699,000; streets and roads,
$2,799,000, and unclassified con¬
struction, $11,869,000.
capital

for

$1,248,000, and is
sales.
of

The

1943,

construction

made

enitrely

up

construction

new

for the 49-week

1942

of

State

financing

$3,066,352,000, is 69%

for

purposes

under

the

and

volume

the

a

totaled

the

5,935,000

week

totals

municipal

for

the

48

$10,207,263,000

bond
weeks

reported

period.

extending

over

two months.

ship¬
of

1,473,000 tons which

period amounted to 1,825,000

same

tons, a rate which would bring
this year's total several thousand
tons above the previous record.
Two

products for which
for total shipments

established

short

of

Current

in

1942

record

levels

shipments

new

were

falling

are

this

of

year.

structural

shapes and concrete reinforcing
bars, both used principally for
construction,

well

are

below

a

largely because of the
virtual
completion of the con¬
struction phase of the war pro¬
year

ago

gram.

V

V

Shipments of

3,176,000 tons of
structural shapes and 418 tons of
concrete

reinforcing bars

first ten

months

of

in

the

are,

1943

re¬

spectively, 24% and 75% below

a

year ago.

Other products for which 1942
shipments exceeded the current
rate

are

rails, butt weld pipe,
wire, tin plate, and cold
reduced sheets and strip.
barbed

electrically welded pipe, lap

wire

pipe, drawn wire, woven
fence, hot-rolled sheets and

strip and cold-rolled strip.

/

'

,

Lumber Movement—Week

Ended November 27, 1943

approximately 4,560,158,000 kwh., coippared with 3,883,534,000
kwh. in the
corresponding week last year, an increase of 17.4%.
The output of the week ended Nov.
27, 1943, was 16.9% in excess
of the similar
period

of 3942.

PERCENTAGE

'•

OVER

PREVIOUS

YEAR

Wefk Enrifd
Dec.
•

Middle Atlantic.

12.9

•

"j

17.9

5.3

i

t

DATA FOR

'

7.2,.

V

18.5

H f

vr.

.'i

15.9

(Thousands of
.% Change

-

order files
amounted

18.9

18.7

Kilowatt.-Hours)

/

National
were

the

Lumber

0.3% above

week

ended

same

week

mills

were

jp, the reporting mills
to .96%

of

stocks.

orders' are ^iiivalent to 38 days'
production at thb current rate, and
gross stocks are equivalent to 36
days' production.

4

18.4

3,132,954

1,423,377

v

1941

v

1O70

1,674,588

For the year

to date, shipments
reporting identical mills ex¬
ceeded production by 7.4%; orders
by 8.4%.
" f i

3,583,408

18.0

3,222,343

1,476,442

1,803,259

3,756.022

+ 16.0

3.273,275

1,400.853

4,359,610
4,359,003

1,703 + 51

3,720,254

+ 17.2

3.273,376

3,682,794

+ 18.4

3,330,582

1,506.219

1,819',276

3,702,299

+ 17.3

3,355,440

1,507,503

4.382,258

1,806,403

3.717.360

+ 17.9

3.313.596

1,528.145

1,798.633

4,415,405
—:

3.752.571

+ 17.7

3.340,768

1,533,023

1,824.160

4,452,592
4,413,863

3,774,891

:+ 18.0

3.380,488

1,525,410

1,815,749

Compared to the average
responding week of 1935-39,

3.761,961

+ 17.3

2.368,690

1,520,7°0

1,798,154

duction

3.347,893
3.247,938

1,531,584

1,793,534

28.8%

1,475,268

1,818,169

3,339,364

1,510,337

1,718,002

3,414,844

1,518,922

1,806,225

13

4,482,665

3,775,878

+ 18.7

4,513,299
4.403,342

3.795.361

+ 13.9

_L

4,560,158

3,766,381
3,883,534

+ 16.9
j-17 a.

For

reporting sdftwood mills, unfilled

.

1942

over 1942

for

0.9% less than production. Unfilled

14.8

3,672,921

20

4

10.5
20.3

33 3

4.350.511

Nov.

27'

-

1

WEEKS

:

15.5

16.9

y -

,

the

Nov. 27, 1943. In the
new 'orders
of these

36.9

i

34.6

17.5

RECENT

14.4

Nov.
Nov.

15.1

19.9 '

%

to

production

4,341,754

—

6

Dec.

,19.0

:•

porting

4,229,252

23

20

7.9

'

4.358.512

i__

2

Nov.

.

v

13

8.3

•:

1943

__________

"Sep. 25

Oct.

7.7

14.1

*

.

Trade Barometer

Nov.

20.5
r

11.5

1943
Weak Ended—

Sep
4
Sep 11
Sep. 18

■

.18.1

35.3

States_a^___^__^.

f" J' "

:

Nov.20

'

!

..■■■■

;\

-————

'

10.4
-

Mountain_______Ll_i^__.

Total United

8.0
17.3

Southern States—

pacific Coast

Nov. 27

:

Central Industrial——
West Central.—*
.jlU—;

Rocky

4

According to the National Lum¬
Manufacturers
Association,
lumber shipments of 471 mills re¬
ber

/')

INCREASE

Major Geographical DivisionsNew England—.;.

Oct.

the past

bar

months

might exceed the previous peak
by about 40%.
Shipments of
seamless pipe and tubes in the

weld

was

9

series of reduc¬

ten

would indicate that the
year total

are

The Edison Electric
Institute, in its current webklydreport, esti¬
mated that the production of
electricity by 'the electric light and
power industry of the United States for the week
ended Dec. 4, 1943,

16

a

totaled

first

V-

Oct.

steady.

the

Among the products for which

Electric QyfipuB For Week Esidsd Dec. 4, 1143,
Sbovrs 17.4% Caiss Over §ante Week Last Yea?

Oct.

few instances prices
A decline of 1.3% in

in

carbon

1943 shipments are ahead of 1942

as a result of

very

1943

week, last

week

Subtotals

ments

records

Nov. 25,1943

95,652,000, :

In the

Quotations for rye flour

the hides and leather products group resulted from




-

_

Commodities—Except in

commodities

and

ceding

Oct.

largely

up

_

for

difference

'!■+

time last month and 2.5% higher than for the
corresponding week
of last year,
+':V
---df -\'y ,.V*
The Department's announcement further
explained:

"Industrial

the

Western

;

The

work.

-

••

markets.';vr1.''-:.-*^yr r*'v.,•

Federal

Dec. 3,1942

Federal

month.

"Other

..

in+v

in

State

are:

'

New

Kanawha', Mason, and Clay counties.
tRest of State, including
and..Grant,.Mineral, and Tucker counties. {Includes Arizona,
California, Idaho, Nevada a'hd Oregon. '§Data for Pennsylvania anthracite
from pub¬
lished

week

construction

State

776

997

+

12,700

__

operations

Panhandle

72

1.271

1

Total all coal—:

and

217

42 "

1,408

IPennsylvania anthracite

♦Includes

29

112

?

258

43

2,196

.

adjusted for

construction

Public

:

214

{Other Western States
Total

25

.

decline

in

and public work, $2,479,679,000.

year ago,

«'•:

-

Private

2,993

1

101

7
V.-

2,193

2,344

by *114%,

decrease

(5 days)

"

nite)

a

engineering construction

*;.

.

Utah

Virginia
Washington

1%

'•+:

Civil

764

VV-.' *' ."'V

bg-

when

week, and the current

26

62

72

++

626

2,744

'

;

"

(biturtiinous

70%

83

'

.

:>t;

79

93

628

2,410

Tennessee™

down

Total U. S. construction-

142

—

first ten

40% above 1942.

average

$457,886,000, is 14% below

724

;

14

93

35

2,573

—

the

Cold-finished

volume

,

96

: •

39

76

—

—

an

35

168
686

::v

Dakota

(lignite)
Ohio_

'vU:

78

155
603

37

Pennsylvania (bituminous)

new

year, steel plate

follows:

as

week's

lower, due to the

weeks.

80 >
167

1942

1943 construction to $2,937,of $61,199,000 for each of the 48 weeks of the
period.
On the weekly average
basis, 1943 volume is 67% below
the $9,035,350,000 for the 49-week 1942
period.
Private construction

548

958

134

55%

continued

its

The current week's volume
brings

565,000,

1,571

199

i

1

exceeds

municipal construction and the 58%

tt

35

and

and

is

Dec.

on

construction

public work

1,138

3

(bituminous

South

236

but

1

lignite)
and

178

report made public

Private

1,229

925

308'

New MpxIco
North

The

1,350

''

Mlchigan_j_T-'A+---f>—
Montana

165

I'd-:'.

IU923

~

41

Kansas and Missouri-—

Kentucky—Eastern—a
Kentucky—Western a1--*
Maryland______

,

191

1

1,620

Illinois

Texas

Nov.

410

■

which

tons, which would indicate fullyear shipments about 8%
above
engineering construction volume in continental United
1942.
States totals $52,181,000 for the
week.
This volume, not
including
Similarly, total shipments of 2,the construction by
military engineers abroad, American contracts
931,000 tons of alloy steel bars
outside the
-country, and shipbuilding, is 49% lower than in the
through October of this year are
corresponding 1942 week, but tops the $36,523,000 reported to
"Engi¬ at a rate which could
bring the
neering News-Record" for the holiday-shortened
preceding week. year's total about

of final annual returns from the
operators.)

Alabama

for

Civil

150,000

washery and dredge coal, and coal shipped by truck from authorized
tExcludes colliery fuel.
{Comparable data not available.
§Subject to

operations.
revision.

Engineering Construction $12,181,COD For

Week-Private Work 114% Above 1942 Week

i

products

finished bars, both carbon and al¬
loy steel, and also seamless steel
pipe and tubing.

-f:

Civil

-

Beehive coke

United

were

year'soQutput will

1,116,000 52,739,000 53,244,000 61,664,000

{Commercial production
United

1929

:

fur¬

■

products and foods.....

Nov. 30,

1942

cov¬

first'"ten

are in the
making include
plates, hot-rolled and cold-

steel

Cal. Year to Date

!iNov. 20,

year

The

•

.

the

records

0.8

*97.5

in

55,-384,000 tons—
more than
1,200,000 tons greater
than shipments in the
correspond¬
ing months of 1943.

2.5

—

shipments

period of

the

1.3

+

destined

seem

ther goes on to say:
Total shipments of all classes of
steel products over that

2.1

+

+ 0.1

consumers,

set during 1943, it is indi¬
by reports from the Amer¬

ering

9.4

+

0;

+ 0.1

♦Preliminary.

—Week Ended

+

well as a n<hv peak
tonnage of steel ship¬

ican Iron and Steel Institute

2.5

—

as

months of the year.
The Institute's statement

100.4

products..

other

110.8

+

be

to

1942

*

118.4

articles
92.9 ,,92.9
Manufactured products..;..—.
♦100.3 ♦100.3
All
commodities
other
than
■ f
farm products
*98.6
♦BS.e

vV-;

COKE

122.1

Semimanufactured

Thanks¬

25,

—0.2

to

cated

11-28

1943

0

105.5

______

days.

1943

100.1

118.4

Miscellaneous commodities..
Raw materials

405,145

1,880

1942

♦ 102.8

105.6

____________

allied

Kousefurnishing goods

normal working day.

.

•

1943

529,020

2,173

PRODUCTION OP PENNSYLVANIA ANTHRACITE AND

:•

:

0.8 of

as

1942

10,866

12,700
2,117

*Eubject to current adjustment;

.

January 1 to Date-——
♦Nov. 27,
Nov. 28,
Nov. 27,

1943

♦102.8

♦103.8

products

—

Nov. 28,

1943

12,450
t2,147

Daily average

'

-Week Ended——

-

10-30

121.2

______________

metal

Building materials

';,;v

v

■

11-20

116.9 \ 118.4

products—..

lighting materials

and

1943

11-28

105.8

leather

products

and

Metals

1943

10-30

121.2

and

Textile

OP

11-13

♦ 102.6

_______—

Hides

Fuel
ESTIMATED

products,
ped

.

♦102.6

products

Pcods

in¬

ovens

.

11-20

1943

commodities

by-product coke in the United States
1943 showed

.

records for shipments of
least six major classes of steel

for the total

Nov. 27, 1943 from—

V■'+•. +:,<'><;>'• .■ad+K''

ended

New
at

Percentage changes to

The Bureau of Mines also reported that the estimated
output of
for the week ended Nov. 27,

•

To Set lev/ Records

,

Pennsylvania anthracite for the week ended Nov.'27, 1943 was 1,261,000 tons, an increase of 54,000 tons
(4.5%) over the preceding week.

of 1942. .v:

2353

Turpentine and rosin again moved upward and
quotations were also
higher for lumber, particularly Appalachian
poplar."
jv*
; ■ *
The following notation is made:
"During the period of rapid changes caused by
price controls,
materials allocation, and
rationing the Bureau of Labor Statistics
will attempt
promptly to report changing prices.
Indexes marked
(■*), however, must be considered as
preliminary and subject to
such adjustment and revision as
required by later and more) com¬
plete reports."
;:
;
'v.;
J,
: r.
The' following table shows
index numbers for the
principal
groups of commodities for the past 3
weeks, for Oct. 30, 1943 and
Nov. 28, 1942 and the
percentage changes from a week ago, a month
ago, and a year ago.
V
d-'dV-V a Va+V, -v (1926=100)
',v..+ V
d'v

Weekly Goal And Coke Production Statistics
,

FINANCIAL CHRONICLE

1.409,459

L777,854

of

35.5%

of

reporting mills
greater; shipments
greater; and orders

31.2% greater,-

cor¬

pro¬
was

were
were

THE

2354

National Fertilizer Association Commodity
Index Advances Fractionally

Daily Average Me Oil Predaefiea Fer Week
Ended Dev. 27,1943 Off Only 750 Barrels
The

week ended Nov. 27, 1943
decline of only 750 barrels from the pre¬

4,413,650 barrels, a

was

National Fertilizer Association and made public on Dec. 6, advanced
to 135.2 in the week ending Dec. 4 from 135.0 in the preceding^week.

crude oil production for the

average gross

A month ago

conditions

for cotton. All other group indexes remained unchanged
previous week.
;
During the week 6 price series advanced and 8 declined; in the

prices

from the

WEEKLY

dations,.

1935-1939—100*

318,000
285,000
1,600

Oklahoma

'i:—-^4+

Nebraska \

Latest

Each Group
Bears to the

v

from

1943

Nov. 27,
1943

Week

•

Ago

Ago

Nov. 6,

Dec. 5,

1942

t273,200

8,150

—

1942

140.8

140.0

134.2

145,6

146.1

148.8

271,500

299,100

+2,950

tl,700

140.6

159.6

;

—+

—

Cotton
.'fi '

••

152.3
185.4

__

162.5

161.3

184.8

148.4

122.8

131.4

131.4

149.7

150.2

104.4

104.4

152.4

152.4

152.5

120.7

155.8

144.2

122.8

149.6

—

161.0

122.8

131.4

-i.

•

142.1

188.9

144.8

^———

Livestock

164.7

<

154.5

;

104.4

Grains '■ —i.—-—....

'••'r

159.6

152.9

185.0

Farm Products

23.0

365,700

—

Oil——

Cottonseed

f

327,650

—

1943

1943

145.6

<

■

Fats and Oils_—

Nov. 28,

850

1,700

1325,000

Foods

25.3

Ended

Ended

Previous

Nov. 27,

Nov. 1

' >325,000
274,800

Year

Week
Nov. 27,

Week

4 Weeks

Change

Month

Preceding

Week
Dec. 4

Group

Total Index

1943

Week

Begin.

r;

">

INDEX

139.9 y

>

'

Panhandle

J,

Texas

North Texas

Fuels

17.8

85,500

85,500

■

89,800

,

' '

141,900

359,750

212,750

v

Miscellaneous commodities-—

10.8

137,600

V':;,''

141,900

—

;

Textiles -1--.

8.2

—

119.3
.

128.6

:

148.7

.

151,3

:

359,750

Texas——

West

East Central TexasEast Texas

139,200

Texas

524,600

298,100

—

Coastal Texas

313,400

1,925,400

1,380,700

•

524,600

«

1,929,200

1,881,000 tl,905,471

Total Texas

5,000

+

1.3

78,800

North Louisiana

353,700

--

96,550

50

78,450

350,950
78,350

+

,

325,250

2,850

50,350

Indiana

2,850

219,300

13,500

+

1,000

13,450

'.

'

Wyoming

1,250

70,750

75,050

24,500

24,550

56,000

53,750

98,000

———u

.

7,000

7,350

Total East of Calif.
California

110,500

110,500

—■

Total United States

90,700

21,300

22,550

100

7,350

7,000

50

112,750

95,800

+

8,250

3,629,500

3,144,900

—

9,000

783,950

733,100

750

780,500

4,413,450

3,878,000

4,413,650

4,376,700

58,400

100,800

50

—

3,633,150

§795,000

795,000

!

•

15,300

54,150

2,000

~

112;900

3,581,700

—

3,650

+

23,750

1,200

+

—

21,300

Colorado
.

+
•

102,850

-•!'!,"

•

23,000

——!

New Mexico

T.A.W. recommendations and state allowables, as shown above, represent the
production of Crude Oil only, and do not include amounts of condensate and natural
derivatives to be produced. ■.
:■
-.J'".

gas

tOklahoma, Kansas, Nebraska figures
tThis

is

the

basic

net

are

for week ended 7:00

a.m.

Nov. 25,

1943.

allowable

as of Nov.
1 calculated on a 30-day basis and
for the entire month.
With the exception of
several fields which were exempted entirely and of certain other fields for which
shutdowns were ordered for from 3 to 8 days, the entire state was ordered shut down
for 8 days, no definite dates during the month being specified; operators only being
required to shut down as best suits their operating schedules or labor needed to
operate leases, a total equivalent to 8 days shut-down time during the calendar month.

includes

shutdowns

and

exemptions

SRecpmmendation of Conservation Committee of California
CRUDE

RUNS

AND

TO

STILLS;

RESIDUAL

FUEL

OF

GAS

OIL,

Oil

GASOLINE;

STOCKS

OIL AND DISTILLATE

WEEK ENDED NOV.

27,

OF

FUEL

FINISHED

1943

(Figures in Thousands of barrels of 42 Gallons Each)
in

estimate of unreported amounts and are

an

this section

therefore
•

on

a

include

reported totals

Bureau of Mines basis

—

§ Gasoline

'

Production

Daily Refining
Capacity
Potential

-

.•

at Re-

Crude
Runs to Stills

tStocks

fineries

Finished

of Gas

of Re-

Includ.

and Un-

Oil and

sidual

tStocks tStocks

% Re-

Daily
% Op- Natural finished Distillate
Rate porting Average erated Blended Gasoline
Fuels

District—

Fuel

Oil

•Combin'd: East Coast,
ana

Arkansas

and Inland Texas—

2,444

1——...

88.7

2,147

87.8

6,063

31,497

23,269

130

83.9

101

77.1

285

1,570

980

District No. 2__

87.2

48

102.1

139

937

158

146

85.2

762

92.5

2,663

13,625

6,598

2,909

Okla., Kans., Mo.—

416

80.1

335

80.5

1,240

6,880

2,465

1,154

,

District No. 3—

8

U.

—

S.

basis Nov.

Tot.

U.

S.

B.

■

—

of
of

9

112.5

35

141

58.3

90

63.8

350

K;817

89.9

769

94.1

1,863

61

22

36

1,198

436

729

14,197

12,259

38,544

M.

27, 1943B.

26.9

4,827

86.4

4,261

88.3

12,638

*69,980

46.187

62,143

4.827

86.4

4,192

86.9

12,488

68,996

45,772

62,662

11,337

74,628

50,195

78,674

M.

basis Nov. 20, 1943U. S. Bur. of Mines
basis Nov. 28, 1942-

3,740

*At the

request of the Petroleum Administration for War.
fFinished 60 122 000
unfinished, 9,858,000 barrels.
tAt refineries, at bulk terminals,' in' transit
and in pipe lines.
§Not including 1,417,000 barrels of kerosine, 4,379,000 barrels of
gas oil and distillate fuel oil and 8,633,P00 barrels of residual fuel oil
produced during
the week ended Nov. 27, 1943, which compares with 1,380,000
barrels, 4,643 000 barrels
and
8,797,000 barrels, respectively, in the preceding week and 1,344,000 barrels
4,098,000 barrels and 7,306,000 barrels, respectively, in the week ended Nov.
28, 1942',
barrels;

Notes—Stocks

of

kerosine

at

Nov.

27, 1943, amounted to 11,257,000 barrels
against 11,492,000 barrels a week earlier and 12,632,000 barrels a year before,
District No. 1 inventory indices are: Gasoline,
40.4%; kerosine, 49.0%:' gas
and distillate fuel, 65.1%, and residual fuel oil, 75.4% of
normal.




4, 1943, 105.3;

Nov.

27,

105.2, and Dec. 5,

as

oil

v;>

conditions

nominal.
Silver

During the last week the silver
market in London has been quiet
and unchanged at 231/2 d. .
The New York official for for¬

eign silver and the Treasury's
price were unchanged at 44%c.
and 35c., respectively.

direction of the Office of

Editor's Note-—At the

Production in silver in Canada

during

September amounted to
1,162,162 oz., according to a pre¬
by the
Do¬
.

Censorship cerliminary estimate
production apd shipment figures and other data have been omitted minion Bureau of

Statistics. This

war.

with 1,286,973 oz. in
Markets," in its issue of Dec. 2,
August and 1,842,007 oz. in Sep¬
stated: "Supply and demand prospects for lead for next year were
tember last year. Production dur¬
reviewed at an industry meeting held in Washington during the last
ing the first nine months of 1943
week. Those familiar with the lead situation believe that consump¬
was
estimated at 13,300,731 oz.,
tion of the metal in 1944 will hold to about the same high level as
against 15,323,855 oz, in the same
at present, even though some war demands are expected to diminish.
period of 1942.
Zinc
allocation
certificates
for<g>
'
v.-,
December were released early in
Lead
Daily Prices
the week as expected. Small ton¬
The advisory committee of the
The daily prices of electrolytic
nages
of copper products were lead industry
met with
WPB copper (domestic and export, re¬
made available by WPB for use in officials in
Washington on Nov. 30 finery), lead, zinc and Straits tin
essential
civilian
applications. to review production and con¬ were
unchanged from those ap¬
Quicksilver on spot sold in a small sumption prospects for 1944. An
pearing in the "Commercial and
way at unchanged prices, but fu¬ official
report on the discusions
Financial Chronicle" of July 31,
tures could have been obtained at was not
available, but those in
concessions in a highly unsettled close touch with the situation re¬ 1942*, page 380.
market.". The publication further
port that most authorities feel
went on to say in part:
that domestic consumption of lead
compares

"E. & M. J. Metal and Mineral

Copper

■

next year

Tonnages of copper released so
war

uses

have

will hold to about the
high level as that of the cur¬
rent year. To support the supply
picture, imports will have to be
maintained next year at a good

ter,

up

covered

in

amendment

an

CMP Regulation 9a.
Brass ftiill products

were

to

pro¬

high rate during the
third! quarter of the current year.
a

The statistics branch of WPB

vealed

that

production

for

re¬

the

July-Sept, period totaled 1,362,277,000 lb., of which 425,647,000
lb. were produced in July, 456,808,000 lb. in August, and 479,822,000 lb* in September. Produc¬
tion for the first nine months
as

was

follows:
Pounds

January

February
March

April
May
June

July
August

September

464,520,000
440,210,000
———I——499,363,000
———
474,727,000
,-i-.
484,396,000
457,671,000
——————„

—————

——

——

-

.

——

,

*

——

Oct. Steel

Payrolls

same

small, but the industry ap¬
to be grateful for even mod¬
est contributions that point to an rate. Ammunition and war con¬
expansion in civilian consumption struction are expected to take less
of the metal. WPB, on Tuesday, lead in 1944, but this should be
released about 1,500 tons of fab¬ offset by increased consumption
ricated copper and copper alloy in cable covering, pigments, bat¬
parts for use in the manufacture teries, and ethyl gasoline.
of builders' hardware, locks, etc.
Sales of common lead for the
During the last week WPB is¬ last week were higher than in the
sued regulations making it pos¬ preceding week. There were no
sible for anyone in the business price developments.

duced! at

Rocky Mountain-

Tot.

130.6

135.0

135.2

combined-—

1926-1928 base were: Dec.

is

4?
824

California

135.4

All groups
on

162

18,463
.

Ind., HI., Ky.—_

District No, 4

104.1

to a total of 500 lb. of
copper and copper base brass mill
and foundry products. This action

Appalachian—
District No,

104.2

of making repairs to buy, without
authorization each calendar quar¬

Gulf, Louisi¬
Gulf,
North
-

104.2

pears

AND

plus

Louisiana

104.2

machinery—

far for other than

Producers.

Figures

Texas

117.5

99% tin, continued
pound.
J

Quicksilver

115.3

been

PRODUCTION

UNFINISHED GASOLINE.

y

117.7

119.8

for the duration of the

——

Montana

117.7

119.8

—I

Released-^1944 Lead Outlook Encouraging
tain

Kentucky

Michigan

127.6

117.7

materials

Non-Ferrous Metals—Zinc Allocations

16,200

69,850

t.-

prevail in
quicksilver, reflecting uncertain¬
ty in reference to prices for next
year. Output is expected to de¬
cline, but whether necessary ad¬
justments in production schedules
can
be
made
without a
sharp
downward revision in prices is a
question that tends to keep buyers
from making long-term commit¬
ments.
Large consumers appar¬
ently intend to operate on a handto-mouth basis, pending develop¬
ments. Prompt shipment metal in
New York held at $192 to $194
per flask of 76 pounds. Prices on
forward
material
were
wholly

1942, 101.7.

255,650

Eastern—

(Not incl. 111., Ind.
and Ky.)

:

119.8

100.0

60,950

+

78,500

w-

—

+

14,000

Illinois'

49,650

;

104.4*

127.7

,

Farm

.3

73,600

218,100

49,000

127.7

228,700

t-4 O O

351,000

77,891

:

205,000

Mississippi. —ti-——.
:

375,700

76,900

Total Louisiana
Arkansas

78,750

272,2.00

50

*

;

272,200

■

1

127.7

Fertilizers

Fertilizer

.3

•Indexes

Coastal Louisiana

—

materials
Chemicals and drugs..—

176,550

376,400

Southwest

Building

354,800

298,050

5,000

+

Metals ■'

6.1

95,800

376,400

142,950

7.1

.

-

Unsettled

Compiled by The National Fertilizer Association

(FIGURES IN BARRELS)

Ended

ables

November

PRICE

COMMODITY

WHOLESALE

Chinese, or
at 51.125c. per
•!;

preceding week there were 10 advances and 5 declines; and in the
second preceding week there were 11 advances and 5 dclines.

Actual Production

...■.Allow-.

♦P. A. W.

group

%

Recommen

,

—

apply to the country as a whole, and do not reflect

•State

tin-plate during the second-quar¬
ter, the industry believes, will be
increased appreciably. ....
f
The price situation in, tin re¬
mains
unchanged. Grade A or
Straits quality tin" is moving on

—

kerosine; 46,187,000
and 62,143,000 barrels vof residual fuel oil.

DAILY AVERAGE CRUDE OIL PRODUCTION

Kansas

:

farm products

period of 1944 will be restricted
to about 45,000 tons. An accumu¬
lation in supplies of tin-plate will
be drawn upon should output fall
short of actual needs. Output of

moved into higher ground with the the basis of 52c.
per pound. Straits
grains group continuing to advance and wheat prices reaching a new
quality tin for, shipment, in cents
peak since 1925.
Lower quotations were noted for good cattle, hogs,
per pound, was as follows:
lambs, and eggs,
However, rising prices for sheep, calves, and
Feb.
Dec.
'' ' Jan.
poultry were more than sufficient to offset these. All major groups Nov. 25—^:.HOLIDAY
Nov.
26
L
52.000
52.000
52.000
of farm product prices except meat animals were higher last month
52.000
Nov.
27—52.000 J '* 52.000
than in November, 1942.
The foods group registered a slight decline Nov. 29—
52.000
52.000
52.000
with lower prices for eggs and oranges.
The textiles group continues Nov. 30
52.000
52.000
52.000
1
52.000
52.000
52.000
to reach a new low since Jan. 2 of this year with further declining Dec.

the East Coast.

on

follows:
The

69,980,000 barrels of gasoline; 11,257,000 barrels of
barrels of distillate fuel,

the 1935-1939 average as

as

exceeded the daily average
figure recommended by the Petroleum Administration for War for
the month of November, 1943, by 36,950 barrels.
Daily output for
the four weeks ended Nov. 27, 1943, averaged 4,413,450 barrels. Fur¬
ther details as reported by the Institute follow:
Reports received from refining companies indicate that the in¬
dustry as a whole ran to stills on a Bureau of Mines basis approxi¬
mately 4,261,000 barrels of crude oil daily and produced 12,638,000
barrels of gasoline; 1,417,000 barrels of kerosine; 4,379,000 barrels of
distillate fuel oil, and 8,633,000 barrels of residual fuel oil during the
week ended Nov. 27, 1943; and had in storage at the end of that week
corresponding week of 1942, and

The above figures

this index stood at 135.4 ,and a yeai; ago at 130.6, based
100. The Association's report continued

on

higher than

It was, however, 535,650 barrels per day

ceding week.
in the

Price

The weekly wholesale commodity prices index, compiled by The

daily

the

estimates that

Institute

Petroleum

American

Thursday, December 9,1943

COMMERCIAL & FINANCIAL CHRONICLE

Zinc

:

"V,

Allocation of zinc for December

shipment to consumers occupied
the industry during the last week.
Though more Prime Western was
earmarked for
distribution, the
total tonnage,

which embraces all

was
somewhat smaller
in recent months, the trade

grades,
than

Set New Record
Steel industry payrolls again in
October established

a new
record,
total of $144,937,000 for that month, the American

amounting to

Iron

and

nounced

a

Steel

Institute

an¬

Dec.

7, adding:
The previous peak was $143,-..
769,000
distributed
in
payrolls,
during September which had one
less working day.
In October a
year
ago,
steel payrolls totaled
$126,627,000.
Number of employees in steel
plants continued to decline in Oc¬
tober, following the trend of the
past year. In October, 615,000 em¬
ployees were on the industry's
payrolls, compared with §20,000 in
September and 635,000 in October,
on

1942.

Wage-earning employees earned
that an average of $1,158 per hour in
zinc will continue to move into October, as against $1.16
per hour
the stockpile until increased ton¬ in September and $1,086 per hour
nages begin to move into civilian in October of last year. Since Jan¬
channels. Brass is certain to take uary, 1941, the base month for
believes.

Producers

contend

less zinc next year.

under the: "Little Steel"
formula, average hourly earnings

wages

Till

have increased nearly 35%, while
From present indications, con¬ average
weekly earnings
have
sumption of tin during the first risen more than 50%.
An average of 44.6 hours per
quarter of 1944'will be held down
sharply, indicating that the sup¬ week was worked by wage earn¬
ply situation, though easier than ers in October, which compares
earlier in the current year,
not

call

for

the

479,822,000

operations, for

general

Tinplate
Jari.-March

program.

the

does with 45.3 hours

change in

radical

a

-425,647,000
456,808,000

tember

in

and

per

week in Sep¬

39.9 hours

October, 1942.

per
•

week

r*t

Volume

Number 4236

158

THE COMMERCIAL & FINANCIAL CHRONICLE

-

Total Loads

Revenue

Freight Car Loadings During Week
Ended Nov. 27, 1943 Declined 62,205 Cars
Loading of
totaled

2.

-

ing

transactions

,

v

.'./v

in

1942.

V,

16,041 cars, a decrease of 6,356
a decrease of 960 cars below

In

the

Western

Districts

alone

:

a

1942.

•

loading amounted to 49,652 cars, an increase of 582 cars
preceding week and an increase of 5,201 cars above the
corresponding week in 1942.
' v
Coke loading amounted to 15,242 cars, an increase of 24 cars
above the preceding week, and an increase of 1,471 cars above the
corresponding week in 1942.
■
y
y
Ail districts reported increases compared with the correspond¬
ing week in 1942,1 All reported decreases compared with 1941 ex¬
cept the Pocahontas and Southwestern.
\
r;
i
;
V'V. '■
'I
1942
Y- L}0
1943
'
1941
.

1,848
I 240

2,811

412

264

Durhanr& Southern

100

,,[,482

90

183

737

'\

2,550

1,558

859

1,371

Florida East Coast...
Gainesville Midland

Georgia..

April

—_———

Georgia & Florida;,..
Gulf, Mobile & Ohio—

of

September..:

5

weeks of October
of

November

Week

of

November

of

November

20

471

484

Norfolk Southern—

4,355

1,026

1,135

1,851

1,691

Piedmont Northern..

Eastern

15,286

Ft. Dodge, Des Moines & South
Great Northern

1943

256

5,
!

1943

1942

1,543

1,274

2,359

1,509

1,686

208

154

Boston & Maine.

5,970

4,951

9,857

15,382

13,153

Chicago, Indianapolis & Louisville

1,468

1,225

1,839

2,405

2,034

,31

19

27

44

41

861

829

Delaware & Hudson...———

1,471

2,821

2,225

5,937

5,340

11,620

7,306

6,733

."9,108

10,844

Delaware, Lackawanna & Western—

.

Minn., St. Paul & S. S. M

385

466

'99

—

2,745

*1,354

3G4

2,992

10,551

3,385

4,*—

,

15,271

19,108

,6,006

8,636

174

189

207

2,415

1,627

1,565

8,592

.9,519

Maine Central.......

1,822

1,949

3,097

3,713

5,233

5,721

464

2,217

2,406

24

41,303

52,736

58,510

50,210

9,098

7,299

13,150

20,400

16,800

N. Y., N. H. &

;

■

991

2,702

2,134

7,157

16,817
1,879

7,094

8,479

7,800

7,221

4,964

5,041

7,535

7,964

.618

739

13

14

375

428

329

233

666

6,272
449

7,531

,

'

828

840

1,033
252

243

4,775

2,507

510

5,974

6,165

Rutland.....—————:
W abash..

2,472

1,064

839

11,377

:

4,276

Erie——,r—-

Total-

short

sales'—

618

"Customers'

other

sales..,

11,605

10,378
Customers'

total

sales.—.

11,843

205

359

479

13,847
•?:•[. 429

19,217

y- 1,707

1,861

70

87

4,716

5,029

894

•

-

633

621

2,658

56

2,337

2,046

yy 4,622

6,134

2,863

12,643

5,441

122

*498

583

4,304

5,267

4,513

4,527

135,679

181,047

234,464

1,380

2,740

3,618

126,616

63,534

727

4,747

*404,

Buffalo Creek & Gauley—
•

Cambria & Indiana————
Central R, R. of New Jersey

33,984

5,282

Bessemer & Lake Erie—

<

"•676

.

348

2,187

295

*3

1,797

1,821

1,937

6,476,

7,422

> 21,344

4

7'

2

6,855

Cornwall.—--

213

539

577

Cumberland & Pennsylvania..—.

155

/

215

140

,

19,192

65

'656
296

»

-

53

11

17

12,408

611

506

639

90

19,431

18,145

19,001

13,109

2,513

2,611

852

Chicago, Rock Is.land & PacificChicago & Eastern Illinois.....

11,250 '

.....

10,929

12,351

11,036

11,773

2,536

2,131

*3,092

6,742

4,001

843

1,404
'•o 4,409

1,330

2,147

1,947

4,378

6,236

5,094

683

908

25

7

861

1,128

1,572

1,549

2,030

4,252
525 '

1,889

1,094

536

2,252

2,020

125

818

1,152

670

27

28,161

25,143

322

342

17,023

—

System

18,034

19,226

v" .:

:

18,140

14,932

576

606

2,890

117,534

131,915

10

1

4,270

2,703

100,416

87,249

'

-

District—
292

123

128

7,366

5,070

3,858

2,863

2,480

2,203

3,212

1,546

4,173

3,164

,

173

214

Kansas, Oklahoma & Gulf

241

1,415

1,121

Kansas City Southern....

5,845

4,310

2,667

2,817

2,635

3,291

3,639

2,702

3,032

2,329

342

266

424

1,238

1,019

...
-

,

;

649 '

242

348

655

162

633

332

259

164

162

466

327

6,527

4,498

6,072

4,766

15,538

17,074

21,098

18,722

5,772 "

Pacific——...

Quanah Acme & Pacific^

17,317
84

103

155

171

245

8,552

8,538

9,901

8,532

8,091

3,236

3,151

3,291

7,399

4,968

...;

St. Louis-San Francisco....—
St. Louis Southwestern
Texas & New Orleans

13,374

Texas & Pacific

13,687

7,912

5,553

•4,609

5,736

5,458

8,050

7,888

107

149

45

33

21

28

23

26

71,198

60,828

73,452

62,896

5,599

Wichita Falls & Southern

84

Weatherford M. W. & N. W...,

21

Total

■

74,434

'

Note—Pfevious year's

re¬

tSales to offset

liquidate

a

round

a

sales."

odd-lot

orders, and sales to
long position which Is less than
lot

are

reported

with

"other

;

■■; •

.

■..

Secretary of the Treasury Morgenthau announced on Nov. 29
that the tenders for

$1,000,000,000,
thereabouts, of 91-day Treas¬
ury bills to be dated Dec. 2, 1943,
and
to
mature
March
2,
1944,
or

which

offered

were

were

opened

serve

Banks

on
Nov. 26,
the Federal Re¬

at
on

The details

Nov. 29.

of this issue

are

follows:

as

■

Total

applied for—$1,544,032,000.
accepted — $1,006,307,000
(includes $63,543,000 entered on a
fixed-price basis at 99.905 and ac¬
cepted in full).
Average price—99.905. Equiva¬
Total

lent

rate
of
discount
approxi¬
mately 0.375% per annum.
Range of accepted competitive
bids:
(Excepting one tender of

Equivalent rate
approximately 0.297%
:

v"

Equivalent
rate
of discount approximately 0.376%
per annum.

from the National

us

Paperboard Association, Chicago, 111., in relation to activity in the
paperboard industry.

dustry, and its

program

includes

member of the orders and

the

cates

figures

statement each week from each

a

production, and also

activity of the mill based

are

industry.

advanced to equal 100%,

on

so

figure which indi¬

the time operated.

These

that they represent the total

.y/;;

ov;:. •

y-..

a

;>•

r.

-

-.

y

STATISTICAL REPORTS—ORDERS, PRODUCTION, MILL ACTIVITY

Period

Received

1943—Week Ended

Sept.
Sept.

4—......

Percent of Activity

Remaining
Tons

Current Cumulative

was

issue

amount of

maturity of a sim¬

a

of

bills

With

respect to the previous
$1,000,000,000 offering of
bills, dated Nov. 26 and maturing
Feb. 24, 1944, the Treasury gave
the following details on Nov. 22:
Total applied for—$1,621,636,000.
Total accepted — $1,008,704,000
(includes $78,182,000 entered on a

fixed-price basis at 99.905 and
cepted in full).

150,943

598,255

97

93

589,323

83

93

lent

mately 0.376%:,per.

153,768

157,082

583,714

98

93

151,725

558,633

96

Average price—99.906.
rate

of. [discount

ac¬

Equiva¬
approxi¬

93

:

LI

in

week's

126,427

144,100

ii_

2

Dec.

on

$1,001,840,000.

','177,766
''

—

2—

Orders

ilar

'121,125

(O

Sept. 25__
Oct.

Tons

Tons

11————Sy.

Sept. 18

Production

(61% of the amount bid for at
the low price was accepted).
There

?

\

The members of this Association represent 83% of the total in¬

annum.

Range of accepted

; y

<

•«

competitive

164,954

152,479

579,800

97

93

156,808

*148,574

589,417

94

93

16—..

156,044

148,293

595,257

95

93

Oct.

23._—

144,254

147,883

588,399

94

93

of discount approximately 0.360%

Oct.

30—

144,413

143,686

587,324

93

93

per annum.

172,441

147,467

608,782

93

93

153,126

149,295

608,893

95

93

of discount
per annum.

Pennsylvania System—.

81,248

69,947

83,885

63,821

60,300

9

14,525

13,274

15,081

28,618

26,072

20,067

20,578

20,172

7,188

6,230

4,224

3,425

4,507

12,204

11,755

Nov.

181,078

158,758

184,246

173,474

-159,063

Nov.

13—

Nov.

20..—.——.

126,726

146,286

587,715

94

93

30,449

25,783

28,799

13,857

11,507

Nov.

27

134,959

142,136

578,434

91

93

22,798




customers'

of discount

We give herewith latest figures received by

Oct.

-—

ported with "other sales."

are

High—99.925.

figures revised.

Weekly Statistics Of Paperboard
r

Oct;

Total—.—

exempt"

Low—99.905.

47

.

106,490

...

"short

per annum.

1,950

—

marked

$10,000).

"Previous week's figure.

^

3,475

Virginian

"Sales

1,610

2,115

123,030

.....

Number of shares.^

12,205

1,856

International-Great Northern.

42

;—

'

.

0

13,961

413

Gulf Coast Lines...

2,779

19,814

24,156

7,091

6,002

4,828

4,454

4,633

2,790

2,073

58,075

50,051

57,588

23,738

10,582

District-

79,460

Dealers—

492

30,543

641

Southwestern

3,807

Pocahontas

79,440

1,400

0

2,115

Burlington-Rock Island

121

Chesapeake & Ohio——
Norfolk & Western—...—

20

_...—

567

4

...

^

Total-.

794

-

by Dealers-

Shares:

120

822

27

—

2,015

1,082

1,916

f

1,662

1,173

,

Toledo, Peoria 81 Western

1,971

Total...

of

1,234

Colorado & Southern

988

.

312,140

10,806,364

Round-Lot Purchases by

686

1,573

Western Maryland

sales—L

11,351

3,222

1,697

————

■

;

tOther sales

100

Chicago, Burlington & Quincy..
Chicago & Illinois Midland..

1,166

Union (Pittsburgh).

Number

4,618

Ligonier Valley——
Long Island
—— —
Penn-Reading Seashore Lines—
Reading Co

305,435

;<■

'Total sales
12,442

26,650

1,557

total

Short sales

*4,731

1,124

30,530

5,123

;

1,403

41,310

703

42,141

Akron, Canton & Youngstown—.

Customers'

6,705

sales.—.

■;

,

,

sales.—.

Dollar value

59,127

Unfilled

Baltimore & Ohio—

other

-

'itwi!?

Round-lot Sales

2,801

96,920

3,612

205,397

'

"CustomeVs'

■;!....

4,972

158

2,323

Orders

Allegheny District—

Customers': short

2,718

10,466

238

of Shares:

Number
'■

32

1,947

V

22,435

12,694

154,636

Wheeling & Lake

Customers'

484

11,637

Western District—

6,254

859
342

■

222

677

19,353

3,009

1,588

,

-

500

-

■

Number of Orders:

10,579

20,649

14,315

591

1,054
'.6; 100
>'

by

Sales)

555

109,497

i

Bingham & Garfield...

13,126

8,442

"3,508

19

Hartford——
New York, Ontario & Western.—
New York, Chicago & St. Louis.——.
N. Y., Susquehanna & Western
Pittsburgh & Lake Erie
—.
pere Marquette..————————
Pittsburg & Shawmut—
Pittsburg, Shawmut & North———
Pittsburgh & West Virginia———.

16,209

21,761

353

2,437
49,218

New York Central Lines...—

3,451

Atch., Top. & Santa Fe System..

13,191
2,770

6,013

Montour...——

3,283

1,817

Monongahela——————

I^highWalley___--_^_.v>-..-..--^-4il.J-,'

4,675

2,507

1,682
..7,264

13,332

v

Odd-Lot Purchases

6,958

1,691

Lehigh & Hudson River
—*—4—..p.;
Lehigh & Ne w England......

13,142,989

3,020

Alton

15,716

3,792

331,367

__———.

'

Dealers—

*168

Total

2,895

12,726

Erie.....—--—-r-——■
Grand Trunk Western

shares..——..

(Customers'

1,156

276

Total
for Week

of

9,119

5,780

132

1,403

.276

Detroit, Toledo & Ironton_—
Detroit & Toledo Shore Line.

1943

orders..——

3,129

11,014

Spokane, Portland & Seattle

9,087

'205

*2,279

Detroit & Mackinac.——*

EXCHANGE

of

13,321

10,614

•5,614

„——.

DEAL¬

THE

Dealers:
purchases)

3,509

613

...

Central Vermdnt——

ODD.

THE

ON

Odd-Lot Sales by

10,020

1,854

Northern Pacific..

Missouri
1941

STOCK

Y.

13,903

437

Missouri-Kansas-Texas Lines-

Connections

FOR

ODD-LOT

Week Ended Nov. 27,

2,609

370

Midland Valley___________,
Missouri & Arkansas.........

624

1942

226

.

18,654

Louisiana & Arkansas—
Litchfield & Madison

Received from

N.

OF

SPECIALISTS

AND

23,496

Ishpeming

Central

14,952

17,120

Minneapolis & St. Louis

of the freight carloading for

27

Ex¬

Stock

Number

866,180

NOV.

ACCOUNT

ERS

112,941

39,243,794

CONNECTIONS

York

TRANSACTIONS

LOT

2,021

H"

Green Bay & Western
Lake Superior &

3,540,210
4,553,007

FROM

STOCK

16,892

Peoria & Pekin Union—.

RECEIVED

New

continuing a series of
figures being published
by the Commission.
The figures
are based upon reports filed With
1he Commission by the odd-lot
dealers and specialists.

507

Southern Pacific (Pacific)

summary

and

8,922

Western Pacific

Central Indiana...-.——.

122,057

ac¬

dealers

current

19,343

Duluth, South Shore & Atlantic
Elgin, Joliet & Eastern—

Utah

——....—

123,940

stock

change,

3,271

Chicago, St. Paul, Minn. & Omaha.
Duluth, Missabe & Iron Range

3,581,350

—

the

on

2,341

...

3,487,905

Total Revenue ,•

Bangor & Aroostook

113,324

of

odd-lot

odd-lot

all

20,148

Chicago Great Western
Chicago, Milw., St. P. & Pac

Union Pacific

—

864

the

specialists who handled odd lots

910

913

volume

for

Dollar value

Chicago & North Western

799,386

District-

826

166

of

22,653

513

100

count

District-

4,295,45.7

Freight Loaded
Ann Arbor

24,908

362

1,211

daily

the

9,408

20,918

Nov. 27 of complete figures show¬

9,998

9,357

Exchange

Number

Northwestern

883,890

Railroads

11,221

119,332

4,185,135

Total Loads
i

1,225

498

10,758
24,095

;

(Customers'

Total—.

873,582

AND

521

407

115

Nevada Northern

743,464

314

475

—...

North Western Pacific

39,988,017

909

10,024

Winston-Salem Southbound

Missouri-Illinois.

(NUMBER OF CARS)—WEEK ENDED

.

412

Southern System...
Tennessee Central.—

4,160,060

820,082

897

366

3,510.057

•

215

10,546
21,651

—

4,170,548
3,385,655

4,511,609'

230
'

Illinois Terminal..

During this period 82 roads showed increases when compared with
the corresponding week last year.
..y
YY-Y;..':A';

k

209

Richmond, Fred. & Potomac
Seaboard Air Line

2,793,630

3,503,383

4,679

4,936

836,762

LOADED

11,035

4,493

207

3,350,996

the separate railroads and systems for the week ended Nov. 27,1943.

FREIGHT

15,528

11,996

4,463

3,181

-

REVENUE

16,344

25,673

161

826,695

a

28,962

22,703

3,235
1,088

-829,663

following table is

4,002

25,848

Fort Worth & Denver City

39,327,717

The

545

300

847,683

Week; of November 27———

706

3,429

3,066,011

754,724

..Total

426

Macon, Dublin & Savannah..—__
Mississippi Central——
Nashville, Chattanooga & St. L.

—882,287

(

383

4,254

3,174,781

13__.__

Week

97

2,457

24,648

Denver & Rio Grande Western..
Denver & Salt Lake

6

Week

110

3,407

360

....

2,866,565

3,545,823
4,518,244

—■

—

38

1,375

27,196

Illinois Central System..
Louisville & Nashville—.

3,454,409

'
4,307,406
————3,554,446

—

36

1,150

...

3,858,479

—

1,581

44

3,122,942

3,1-51,146

—•
—■

„—

412

1,201

...

—

4,149,708

———-

weeks

...

3,136,253

1

L

1,694

273

3,055,640

—

10,524

1,738

...

3.530,849

•

.

;

390-

Columbus & Greenville

3,073,426

t—

4 weeks of

389

Spokane International

y

-

—

,

Trading

and

Commission made public on Dec.
6 a summary for the week ended

2,719

Ore

4

1,553

4,576

Atlantic Coast Line...

above the

4 weeks of August

2,600

1,462
11,750

1,400

below the preceding week but an increase of 5,458 cars above

;——.

2,916

785

4,755

the corresponding week in

6 weeks of July

863

719

2,002

preceding week, and

—

626

Securities

438

5,447 cars below the preceding week, and a decrease of
1,128 cars below the corresponding week in 1942.
.'V Forest products loading totaled 41,905 cars, a decrease of 3,978

4 Weeks of June

270

4,668

of

5 weeks of May

328

Clinchfield

corresponding week

4 weeks of

387

11,443

stock loading amounted to

February
4 weeks of March _—i—J.

The

293

3,488

.

6 weeks of January

1942

13,093

loading of- live stock for the week of Nov. 27 totaled 12,169 cars,

cars

1943

3,688

above

.

decrease

277

1941

12,672

American

of

increase

an

•

the

& Northern.

1942

Central of Georgia...
Charleston & Western Carolina..

was

.

below

1943

Railroads an¬
the corresponding

Association

This

.

cars

Alabama, Tennessee

Connections

713

,.

the

District—

NYSE Qdd-Lot

Received from

700

76,618 cars, or 10.3%, but a decrease under the same
week in 1941 of 46;098 cars or 5.3%.
;
V
v
1
' :<•, ;•.
Loading of reVbnue freight for the week of Nov. 27, which in¬
cluded Thanksgiving'Holiday' decreased 62,205 cars, or 7.1% under
the preceding week.';
'
'
W.
vv'
:
Miscellaneous freight loading totaled, 368,418 cars, a decrease
of 31,627 cars below the preceding week, but an increase of 11,103
cars above the corresponding week in
1942.
Loading of merchandise less than carload lot freight totaled
66,123 cars, a decrease of 10,223, cars below the preceding week, but
an increase of 14,334 cars above the corresponding week in 1942.
Coal loading amounted to 181,812 cars, a decrease of 6,461 cars
below the preceding week, but an increase of 28,215 cars above the
corresponding week in 1942. :
\
Grain and grain products loading totaled 50,889 cars a decrease
of 4,166 cars below the preceding week but an increase of 11,796
cars above the
corresponding week in 1942.
In the Western Dis¬
tricts alone, grain and grain products loading for the week of Nov.
27, totaled 32,772 cars, a decrease of 2,709 cars below the preceding
week but an increase of 6,545 cars above the corresponding week
Live

Southern

Total Revenue

•

Atl. & W. P.—W. R. R. of Ala.

week of 1942 of

in 1942.

'

,

Atlanta, Birmingham & Coast-

the

cars,

Dec.

on

Vy "- : \ RaUroads

Freight Loaded

;

freight for the week ended Nov. 27, 1943,

revenue

820,082

nounced

2355

-

6

—

——.—,—

Notes-JJnfilled

orders

of the

prior week, plus orders received, less production, do
orders at the close.
Compensation for delinquent
reports, orders made for or filled from stock, and other items made necessary adjust
tnents of unfilled orders.
not

necessarily

equal

the

unfilled

bids:

•

.,u.;

High—99.910.

Low—99.906.

-

Equivalent rate

Equivalent

rate

approximately 0.376%

(63% of the amount bid for at
the low price was accepted).
An

issue

bills matured

of
on

$1,002,335,000
Nov. 26.

of

THE COMMERCIAL & FINANCIAL

2356

dend.of 20 .cents, payable Jan. 1,
1943 to stock of record Dec. 17

A

proposal to increase the cap¬
ital of the Chase National Bank

version,

Stating that business opinion, up to a certain point, supports the
E. Chester Gersten, President of
730,000 from surplus for that pur¬
the Public National Bank & Trust general position of the framers of the tax bill as passed by the. House
pose
will be submitted to the
on Nov. 24 and sent to the Senate, the Guaranty Trust Co.
of New
shareholders of the bank for ap¬ Company of New York, announced
the appointment on Dec. 2 of Gar¬ York indicates that this view is reflected in answers to a sampling
proval at the annual meeting on
land
J. Day as Assistant Vice- inquiry by the Trust company, the results of which it made public
Jan. 11.
A letter outlining this
'
President.
Mr. Day is identified on Dec. 3.
proposal, signed by Winthrop W.
In
an
effort to
ascertain the^
with
the
Correspondent
Bank
Aldrich, Chairman of the Board
tenor of opinion in a number of viduals and on corporations, par¬
of Directors, was mailed to share¬ Division at the main office of the
businesses
and
industries,
the ticularly the latter, are about as
holders on Dec. 7 with the formal bank.
Trust Company asked several rep¬ high as they can safely be made.
notice of the annual meeting and
Frederick J. Kugelman, Cashier resentative executives to set forth One typical comment says: 'Cor¬
proxies.
State Bank of their views on the vital question poration taxes, instead of being
The bank's announcement says: of the National
should be decreased.
of wartime taxation and as to the increased,
"This action would round out the Newark, was elected President of
points that should be Perhaps it would be unwise to
the Essex County (N. J.) Bankers' essential
par value of each share of stock
Association at the recent annual considered in connection with tax decrease them at the present time,
by increasing it from the odd
but certainly they will have to be
He succeeds M. Ray¬ legislation.
amount of $13.55 to $15. The num¬ meeting.
mond Riley, President of Orange
According to the Guaranty Trust decreased at the earliest possible
ber
of
shares, however, would
Other of¬ Co., the replies indicate a pre¬ date, or the incentive of manage¬
remain
unchanged at 7,400,000. First National Bank.
ment will be destroyed, with the
Two-thirds of the stock
of the ficers elected,- according to the ponderance of opinion on the fol¬
result that the ability of private
bank must approve the proposed Newark "News," were: First Vice- lowing points:
"Further
substantial
increases business to provide employment
increase of
capital in order to President, Roy K. Hitchings, Pres¬
in income tax rates on corpora¬ in the post-war era will be greatly
make it effective.

Bank;

ident, Irvington National

"Last

September the Board of
authorized

Directors

increase

an

of

$21,460,000 in the surplus of the
bank, raising it from $100,270,000
to

$121,730,000. That increase in
surplus, as announced at the time,
was made possible as a result of

recoveries, improved earnings, and
profits realized on the sale of
securities.

Second Vice-President, Gustave

A.

be

of

Vice-President

a

Bank

National

First

has

Crawford

Paul

J.

and

futile

the

in

>

needed, should
broadening the

the

revenue,

if

be

tax

general sales tax.
"The
most
objectionable fea¬
tures of the present law are the
of all, a

of Philadel¬

Crawford was for¬
Vice-President of the capital stock tax and the declaredPhiladelphia National Bank with value excess profits tax.
plus and the proposed increase of which institution he had been con¬
"It is highly important that the
capital are consistent with the rec¬ nected for the past nine years.
tax structure be such as to permit
ommendations of national super¬
business concerns to build up ade¬
visory authorities that banks, in¬
The converstion of the Austin quate post-war reserves.
sofar as possible, should augment
State Bank, Chicago, to a national
"The tax system is greatly in
their capital funds by retention
institution with the title of Na¬ need of simplification and, as far
Chairman's

"The

of

a

letter

substantial

adds

of

increase

recent

the

that

portion of earn¬

of

Directors

of

Austin and dou¬ as possible, stabilization.
"The present fiscal problem can
capital of $200,000,
is announced by Lester D. Castle, be solved largely if not wholly by
President.
The capital increase economy in Government expendi¬
was accomplished by transferring
ture.
"Double, taxation of corporation
$50,000 from surplus and by sell¬
of

Chase

the

New York has

tional

Bank

bling

The executive committee of the
Board

a

sur¬

ings for that purpose."

National Bank of

Mr.

phia.
merly

of the

authorized, subject to approval by
the proper Federal agencies, an
increase in the supplemental com¬

ing 3,000 shares of $50 par stock.
The
bank's
former capital con¬

pensation payable to the bank's
employees from the present rate
of approximately 5% to a rate of

value.

par

10%

were

the first $3,000 of annual
which
do
not
exceed

on

salaries

sisted

of

5,000 shares of $40 par
the capital account

Now

is made up of 8,000

shares of $50
Plans for the change

stock.

in

noted

Nov. 4, page

increase
randum

was

in

made

proposed
a

to the

addressed

memo¬

staff of

the bank by H. Donald Campbell,
President.
He
stated that the

change
to

will be made applicable
compensation for the first quar¬

ter of

1944, if approval is granted
the Federal authorities.
He

by
also

said

that in

The

columns

of

Bank

Canada

•

of

the

Chase

Na¬

(branches, and Frank S. Moffitt,
j who has been supervisor of in¬

(C. I. O.)

ered

inequitable

in

their opera¬

tion.

Wage Demands

on

has

Dec 1 stated that the

presented

formal

de¬

The

that

Company indicates
businessmen
believe
that
Trust

been receiving mands for a wage increase for apeconomy in Government expend¬
compensation since oroximately 70,000 employees of itures is a prime requisite, even
the final quarter of 1941, with the Chrysler Corporation, accord¬
in wartime. Nor, it states, is the
payments computed at the rate of ing to an Associated Press dis¬
recommendation confined to civil
6% on the first $1,800 of basic
patch from Detroit, Mich., which expenditures; it applies also to
annual salary and 4% on the next
those classified as for war. Some

tional

Bank

have

supplemental

$1,200.

.

further adds:

'

"The union,

Frederick

E.

Hasler, Chairman

the

Little

•

inserted

be

clause

giving

that

there

in the

law a

feel

correspondents
should

definite

assurance
that the excess profits tax will be
abolished within a brief period

This, ac¬

after the end of the war.

cording to one official, 'would en¬
to proceed with
for necessary post-war
adjustment and would be of ma¬
terial assistance in the develop¬
able

taxpayers

their plans

of

ment

avoiding

in some
post-war

shock

of

would

serve

the

enterprises,

new

also

thus

measure

deflation.
a

as

the
It

notice

to

profits tax as a

sidered the excess
war

and not part of our

measure

»

v

seeking to overturn

Steel, formula

limita¬

correspondents
top

of

One

list
far

their

goes

place this at the

so

of suggestions.
as to say flatly

try

continue to operate at a
high percentage of capacity,

to

very

and

able

by that means it will be

services, as well

armed

the

from

returning

soldiers

the

absorb

to

reemploy those persons now
working in munitions and war
material plants.'

as

generally felt

"One of the most

needs is that of simplification of
the tax structure.
The 'extreme

complexity of our income tax sys¬
tem' is described by one corre¬
spondent

'obstacle of great

an

as

importance in the path of Ameri¬
can business,'
Another points out

'individuals, even those with
incomes, require advice^ as
how to do all the accounting

that

small

these days.'
widely

necessary

"The

...

advocated

most

simplification is repeal
of the Victory tax.
This is sug¬
of

means

as a method of tax re¬
but purely as a step to¬

gested not
duction
ward

greater simplicity, and the

link¬

recommendation is generally
ed with the

proposal that income
accordingly. In

tax rates be raised

this

to

opinion

business

respect,

seems

be in substantial agree¬

those who

ment with

framed the

There is some sup¬

pending bill.

port for the further proposed step
combining the normal tax and

of

surtax

into

single series of rate

a

brackets."

Shorter Hours Without

"Representative of the general
opinion concerning individual in¬
come tax rates in the middle and

inflation.'

affect

"There is

no

feasible methods of

obtain¬

additional revenues.
Much
stronger, however, is sentiment in
favor of broadening the excises
ing

into

with

a

general

or

sales

business

unanimous.

as

tax,

either

exceptions

without

such necessities

•

Labor

sfctorter

demand

will

post-war hour standards without
reductions in
earnings, William
Green, President of the American
Federation of Labor^told
man

war

the Tru¬
investigating committee

of the Senate

Dec. 3.

on

"

Asserting that the Administra¬
tion has

not

kept its part of the

no-strike agreement by adjusting

pronounced oppo¬
sition to higher excise taxes; on
the contrary, a majority of those
who
express
themselves on the
question mention this among the
most

Wage Guts Urged By
Green In Post-War Era

peacetime tax structure.'

is

time production. I believe
such a provision will make it pos¬
sible for industry in this coun¬

taxpayers that Congress con¬

substantial additional revenue nor

social

and the

(head office Montreal) announces should be used exclusively for so¬
appointment of two new As¬ cial security purposes.
sistant Managers.
The appointees
"High tax rates are accepted as
are
T.
H.
Atkinson,
formerly necessary,
and
objections
are
supervisor of Quebec, New Bruns¬ raised only against those provi¬
wick
and
Eastern
Ontario sions of the law that are consid¬

union

ceding the possible desirability of
rise to 95 or even 100%. Some

a

security tax

ent,

Chrysler Workers Union

Employees

ing any increase and others con¬

merely
for
political
purposes,
since they would neither produce

conformity with vestments since 1940.
"On the following points opin¬
the bank's regular practice of re¬
ion is divided, or there appears
viewing salaries at the end of the
to be no pronounced sentiment
year,
salary
increases will b,e
among the business men respond¬
granted in cases of merit, promo¬
ing to this company's inquiry:
tion, and advancement to posi¬
"Further increase in the excess
tions involving increased respon¬
profits tax.
Leo LaMotte, National Director
sibilities, etc., wherever justified,
"The importance of renegotia¬
and
as
permitted by wage and of the Chrysler department of the tion of war contracts.;
Automobile
Workers
salary regulations of the Govern¬ United
"The compulsory savings plan."
ment.

correspondents flatly oppos¬

some

to

immediate conversion

for

peace

with

tax,

higher brackets is the comment
that 'existing rates have reached
a level where increases would be

spreading of losses should be lib¬

the

lakes

profits

excess

eralized.

of

1820,

Royal

provisions of the law deal¬

ing with capital gains and losses,
excess profits tax credits and the

division of opinion

a

"Estate, gift and social security
taxes should not be raised at pres¬

these

$6,000.
Announcement of this

earnings in the form of profits and
dividends should be abolished.
"The

the

on

dangerous.
tax

"There is

declines

inventory

for

corporations may enter the post¬
war
period in a financial condi¬
tion

to

decreased.'

would

obtained by
base, either
through lower personal exemp¬
been tions, higher excise taxes, or, best

lin, Secretary-Treasurer of United
States Savings Bank of Newark.

elected

individuals

on

"Additional

Thomas A. Lough-

and Treasurer,

and

tions

middle and higher brackets

Wiedenmayer,, Cashier, National
Newark and Essex Banking Co.,

fund suit¬

a reserve

that wil| come somp time after the
crest of the war, in order that

$111,000,000 by transferring $10,-

,

in

able amounts for post-war recon¬

Economy In Government Expenditures Held Requisite

next.

$100,270,000 to

of New York from

and place,

Guaranty Trust Survey Shows Business Urges
Tax Structure Permitting Post-War Reserves

Companies

Items About Banks, Trust

1943,

Thursday, December 9,

CHRONICLE

costs, Mr. Green added:
"We

opinion more nearly
Underlying the pro¬

posal is the central thought that
existing taxes fail to reach the

shall

endeavor

to

restore

equity by insisting that peacetime
hour

shall

standards

be

lished without reductions in

estab¬
earn¬

ings."
In Associated Press

advices, he
saying:

for

food. On no point

increasing living

wages to absorb

Mr.

was

Washington
further quoted as
•

Green endorsed

Nelson,

Chairman

Donald

of

the

M,

War

Production Board, as the man best
fitted

to -guide

the post-war

re¬

conversion program.

great bulk of war-swollen income

"Because of his valuable train¬

general sales tax
ing and experience," Mr. Green
offers the simplest and readiest
said, "Mr. Nelson is especially
means of achieving this end.
well equipped for this job. I know
"The features of the present tax
and

that

law

that

the

are

most

strongly

ob¬

jected to are the capital stock tax
and the closely related declaredvalue excess profits tax. ...
■"

"Concern

over

the

question

of

is widely ex¬
pressed. An executive of a large
post-war

of

no

more

man

who

has

rendered

a

valuable service during the

war."
Mr.

Green

suggested

Nelson function under

reserves

a

that

Mr»

"top pol¬

icy council" in which Congress,
made that "the limit has been reached
airplane corporation complains of management, labor and farmers
Ford in the amount which corporations
'the inability of a company today would be
at a meeting of the Board of Di¬
represented..
Motor Company, General Motors and individuals can pay" and sug¬
to set up post-war conversion re¬
rectors held on Dec. 6, Edwin Van
gests that "pressure be put on
Referring to labor's part in the
serves of its own on a more real¬
Corporation
and
some
smaller
Pelt, Assistant Vice-President, was
Congress and the Administration
istic basis than the arbitrary one war, Mr. Green said workers have
elected a Vice-President; F. Staf¬ manufacturers.
to secure, any additional funds by
ford Cleary, Assistant Treasurer,
Another had to depend on longer hours to
"The union, according to Mr. a reduction in governmental cost." provided in the tax law.'
official suggests that the pending meet increased
elected Assistant Vice-President,
living costs.
It is further stated in the an¬
LaMotte, asked the negotiations
bill should contain 'provision for
and Gilbert Henne, Chief Clerk,
Commenting
on
the Truman
by
the
Guaranty
start Dec. 21 on its request that an nouncement
the setting up of reserves before
elected
Assistant
Treasurer; all
►Trust Co.:
committee's report urging labor to
taxes to meet the inevitable costs
located at the Seventh Avenue over-all wags increase be deter¬
"Among the most widely advo¬ of (a) reconversion, (b) decline be "realistic" about wage adjust¬
branch.
Talbot Babcock, an As¬ mined on the following principles:
cated measures for the reform of in inventory values following the
sistant Treasurer at the main of¬
ments in the post-war period, Mr.
"A
cost
of living
adjustment the Federal tax system is the elim¬
fice of the bank, 30 Broad Street,
war, (c) deferred maintenance and Green
said
downward
revision
sufficiently in excess of the 15% ination of the double taxation of repairs.' A third believes that 'the
•was
elected an Assistant
Vicewould not be economically advis¬
income in the form of corporate
of the Little Steel formula to meet
outstanding tax problem today is
President.
and
of
dividends
to to write a law that will permit able.
The directors of the Continental the 'real' advance in the cost of earnings
of the

Continental

Bank

&

Trust

Co. of New York, announced that

tions

on

similar

wages,

demands

recently
on

the

.

Bank & Trust Co. at their Dec. 6

stockholders.

living; and:

meeting voted to transfer $1,000,000

plus

04 undivided profits to
and

at

the

same




additional

"On

adjustment

to

sur¬

time

clared the regular quarterly

"An

de¬

divi¬

meet

by

special costs and needs faced

war

production workers."

more

no

corporations to be solvent and

subject are the replies

generally agreed or more
than on the view that

emphatic
income

tax

rates

both

on

indi-

in

liquid position at the end of the
war.
Some
definite
provision

should be made to permit corporations to charge

"If
on

a

industry adopts such
nation-wide

cutting off its

operating expenses serted.

a

plan

scale, it will be

own

nose," he

as¬