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Volume
A Posl-War fax
By
D.
C.
and
COLEMAN,
President,
Pacific
Chairman
Canadian
indication
no
down
of
of
Canada's
tivity.
time
some
slowing
a
industrial
For
ac¬
:
-
•
ing
here
o
in
so
on
preserva-
Monetary
Policy, and is a member of the Post-War Committee of the
Commission on Interstate Cooperation.—Editor.)
California
.
reduction
tax,
corporation;
tax
of
rates,
elimination of double taxation of
dividends;revision
(Continued
on
capital
of
,>
page
ber
one
Chamber: I remem¬
thing with pleasure about the time when 1 became a member
That
of this Chamber.
the sponsorship.
was
d i
a
a n
plans
for the
plans
future
608)
,
based
upon
Coleman
C.
D.
a
to
halt when the stimulus
a
has
war
doubt if
we
ceased
I
exist.
to
yet realize
the extent
of the industrial advances Canada
has made
the
the past four years
new
resources
that
over
vast
have been lapped as a part of the
effort.
These; together with
the greatly
increased skill of our
workers, remain with us and will
play an important part in future
development.
/
- •• .
In This Issue
material
Special
and
sponsorship in
at¬
to
the
items of
b
u
rd
Dr.
and
jointly in some master plan for a
post-war
tax; system. -Already,
many suggestions about post-war
have
been
In
made.
fact, there appears to be develop¬
remarkable degree of gen¬
eral agreement on many points.
The left bank is being ' rapidly
depopulated,- and even the erst¬
ing
a
while rabid left-wingers are now
the new party line in
interest with reference to dealer
favor of the capitalist system and
activities in the States of Illinois
free enterprise.
If the trend con¬
and
Wisconsin
appear
in
this
tinues, the Republican Party is
issue.
'; ' ■■■'
V' likely to find the New Deal ap¬
For Illinois see page 602; Wis-;
propriating its platform in 1944,
cousin, page 604.
reversing the situation in the last
General index
616.
page
on
We take pleasure
national elections when
in
v
inad¬
your
God-Fearing Administrative Officers
Affirms
Economy.
in charge
Standard
Gold.
77
"We
told
are
that
are
the world.
over
tionary, let
other
many and assume
tainly
the
*An
of
-
is spread¬
'
4, N.Y.
2-0000
Teletype NY 1-210
Established 1927
*
mm
A.
BOSTON
•
*■
HUGH
State 8770
Teletype CG 1219
ONG and-GOMPANY
•INCORPORATED
.
Albany
Buffalo
Pittsburgh
Williamsport
IS EXCHANGE PL
Syracuse
Dallas
634 SO. SPRING ST.
LOS ANGELES
JERSEY CITY
in
BOND
Kobbe,Gearhart&Co.
Feb.
the
chase
bank
service with Chase
correspondent
Hardy & Co.
facilities
York Stock Exchange
Members New York Curb Exchange
Members New
30 Broad St.
New York 4
Tel. DIgby 4-7800
Tele. NY 1-733
Member federal Deposit
Insurance
V
Corporation
Members New
Y. Security Dealers
N.
Ass'n
Tel.
REctor 2-3600
*
New York 5
Teletype N. Y. 1-578
-
'-"hnn.
England
Public Service Co.
ALL ISSUES
Analysis upon Request
*nt^rorlM
60]
Corp.
MET SMITH It CO.
York Stock Exchange
Broadway, Hew York 5,
120
45 Nassau Street
New
REYNOLDS & CO.
INCORPORATED
Members
and Dealers
International
EXCHANGE
.
on
•'
Broaden your customer
Service
Welder Co.
Detrola
-■
Commerce of
York
Brokerage
Federal Machine and
Securities
TELEPHONE^RECTOR 2-6300
New
Cer¬
Purolator
BROKERS
NEW YORK 5. N.Y.
of
Products, Inc.
manifold grades of
Over -The * Counter
14 WALL ST.,
Chamber of
State
I
I
Actual Trading Markets, always
MEMBERS NEW YORK STOCK
Dr.
Whelescfle'DisMButers
SECURITIES
Troy
by
Theis
for Banks, Brokers
64 Wall Street, New York 5
PHILADELPHIA
CHICAGO 3, ILL.
Bull, Holden & C°
delivered
(Continued on page 612)
Henry
doesn't justify that sort of fatalistic
(Continued on page 6.14)
; :
Bond
Eep.
135 So. LaSalle St.
25 Broad St.
address
mistake made by so
that evolution necessarily implies progress.
\
■'
OF THE CITY OF NEW YORK
R. H. Johnson & Co.
Exchange
Exchanges
Geneva
the
the
a
record of the past
Bay War Bonds
INVESTMENT
London
.
.
began this study of post-war
Anderson,at the monthly meeting
If this change is evolu¬
not make the
us
VICTORY
Hirsch, Lilientha! & Co.
HAnover
I
foreign exchange stabilization
3, 1944.
ing all
Benj. M. Anderson
Tieing
in the midst
great social and economic change that
of
Members New York Stock
two
with the
Bank of Com¬
of
we
from
that
merce,
a-;
PROSPECTUS ON REQUEST
NEW TORK
By
was
years—be¬
years
Their4 Currencies To Those Based On
Invest in
Mr. Carl E. Dyas
and
19
fore
Though Dislocations May Temporarily
Necessitate Some Countries Establishing
Exchange
I
1920. to 1939—
Free International Geld Standard Even
Gold
cor¬
Bank
In
Belief
I
to
national
OHIO
14,
which
with the Chase
neering And Expansion Must Take Place
Of Defeatism And Philosophy Of Ma¬
tured
in
state¬
rect.
Declares Pio¬
Who Detest Absolutism.
Building
CLEVELAND
an
vertence
want
headquarters at
Union Commerce
903
Re¬
publican candidates tried to pre¬
empt the New Deal platform...
Consequently, there is, at the
announcing the opening of a
sales
following
two
there
was
ment
.
reform
Chase
the way,
Is
X-\
taxation.,,
^
Perhaps all of these objectives
can
be
blended
and
realized
tax
the
tial "Menace" To Citizens And Antidote
Harley Lutz
of
e n
be¬
was
fore I went to
Henry A. Theis Recalls Warning of Jerome Frank, For¬
mer SEC Commissioner, That Powers Of SEC Are Poten¬
the
bounds to
Chamber.
Bank—but, by
there is
the
problem
of
settingpurposes -
For Our Economic Ills
-
list,
presumpt ion
that this country's progress will
James-S. Alex¬
.
,
It
exhaust
not
are
at that time the
ander, President of that institution, sponsored my membership here
of the Chase Bank seconded the nomination.
:———:—
"
'
v—■—<£I
feel
proud today of that
'.finally, *
tempting
was
and A. Barton Hepburn
this
without"
I
Economist of the old National Bank of Commerce.
of tax- '
morale; '
tion;
Pacific
•
Capital Research Co., Los Angeles; is a member of the Execu¬
tive Committee of the Economists' National Committee on
payer
Can
war
agreement
of the
and'
-
or
.
;
is Professor of Economics at the University of
He was formerly Economist of The Chase
National Bank of the City of New York.
He is Consulting Economist
California, Los Angeles.
•
tions.
of
great
of.;sim-
;
By BENJAMIN M. ANDERSON, Ph.D.*
(Dr. Anderson
the. repeal of the ,;Mr. President, Gentlemen and Friends of the
as
profits
excess
essential to
the
ties in peace¬
time
occupa¬
come
normal
the,
.,
re¬
activi¬
newed
..'
1.
such matters
p i i f;,i c a ¬
tion which is
up
quickly by
1
wasteful;;i moment;;,.general
a
need
be
taken
®;
■'
.
is
f
war
will
to preserve their fiscal
both the administrative
Federal-grantsystem.; there ;
*
lines
volume
of
and
cessation
problem of the post-war tax structure may be approached
angles. There is, for instance, the question of assuring
and steadiness in the Federal receipts; there; is the issue of
seductiveness
from
•work
Gold Versus Bancor And Unitas
.
from several
to the states revenues sufficient
independence; and enable them to resist
result¬
there
The
University
encroachments of a rapacious Federal bureaucracy and the financial
ployment
4
/'
Public Finance; Princeton
assuring
to
come any em¬
slack
of
Professor
Railway
Price 60 Cents a Copy
International Currency
Program
By IIARLEY L. LUTZ
Looking* towards the future, I
see
v
New York, N. Y., Thursday, February 10, 1944
Number 4254
159
Telephone:
REctor 2-7400
"
.•
N. Y,
Bell Teletype NY 1-635
Members
New York Security Dealers Assn.
52 WILLIAM ST., N.
Y. 5
HAnover 2-9980
Bell Teletype NY 1-395
New York
Montreal
Toronto
IRA HAUPT & CO.
Members of
Principal Exchanges
111 Broadway, N.
REctor 2-3100
Y. 6
Teletype NY 1-1920
& FINANCIAL CHRONICLE
THE COMMERCIAL
594
•'
,
Thursday, February 10, 1944
:Trading Markets in::
Exchange PI., N.Y. 5
40
BELL TELETYPE
HA 2-2772
Telephone BArclay
J.: \Teletype
.;
7-0100
'
Members
.
.
Members New York Stock
25 Broad St., New
.
New York Curb Exchange
120
.
New Orleans,
BROADWAY, NEW YORK
Tel. REctor 2-7815
By Hon. JOHN W. BRICKER*
Loan Drive?
struction
HI)
Y. 1-1227
Teletype N.
Gravier
as-
sembled
here
tonight
are
descend-
\
in
ants
sturdy
Bonds
f
Curb Exchange
New York
think
it
Beane.
NY 1-1548 .s
System Teletype
>
you
in
-,
s
]w i t h
joined
uncertainties
the
Byrndun Corp.
Lincoln
5
sound
and Class A
Common
,
1952
Struthers Wells
Preferred
&
11. G. BRUNS & CO.
20 Pine
cannot
Teletype
NY
1-1843
/
.
,
,
of
must
be
press,
the
an
right
straint.
Boston
Du
Providence
&
RR.
New England
people are guided bv their fears
of
the
mation
is
yearning
The
ftreerteand'
Hanover 2-4850
1-1126
&
distorted
for truth
1127
for
1943,
1942.
N. Y.
Index averaged
10% increase,
was, of course,
record, and
the fourth quarter rate (247) was
the highest of the year,
Since
industrial
production
has
met
war
requirements in most cate¬
gories and accumulated a surplus
in some, it is not believed that
the 247 figure will be exceeded
the
highest
year
As the
(Continued on page 610)
Dinner
on
<
;
Index for. the year as a
estimated
York
tion
be
will
evening, Feb.
at
the
or
a
decline
3%
the
from
average.
232,
-
1943
-
PARK, Inc.
-
Talon Inc.
Deb. 5s, 1963
tional.
the
dress
be:
held
Associated
is
G. A. Saxton & Co., Inc.
70 FINE
cm
ST..
N
Y.
5
f.
WHitehall 4-4970
Teletype NY 1-609
Income 5s 2032
Bought—Sold—Quoted
;
BUCKLEY BROTHERS
Members New York Stock Exchange
63 Wall Street, New York 5,
N. Y.
WHitehall 3-7253
Direct
Wires to Philadelphia & Los Angeles
Associa¬
WE MAKE BIDS
ON BONDS WITH
$7.50;
Hotel.
dress
Coupons Missing
op¬
OR
Mutilated
meeting; his speech is
over
Station
WHN.
of
Allen
5
Summers.
,
v
120 Broadway, N. Y. 5, N.
REctor 2-7634
Y.
Teletype NY 1-2361
'
'
Universal
■
E.
Members New York Security Dealers Assn,
&
Company,
Chairman; John J. O'Kane,- Jr.,
John J. O'Kane, Jr. & Co., and
James Currie, Troster, Currie &
•
Match
PITTSBURGH
•
•
RAILWAYS COMPANY
Estimated net earnings
for 1943—after taxes
Portland Electric Power
7%
Fresent cash and
r
.
$4,500,000
...
13,009,000
.
.
equivalent
,
.
prior pfd.
Bonds
BERWALD & CO.
N.
Members
Dtvr
5
Selling
under
60%
Preferred
Bought—Sold—Quoted
tin
YORK
NEW
HAnover 2-9470
17, at 7:00 o'clock
broadcast
FASHION PARK, Inc.
Electric
York Curb Exchange
ST.
Great Northern
Thursday
on
Eastern Corporation
Emerson Radio
'•
New Orleans
Talman, executive viceof T. W. A., will ad¬
president
FASHION PARK, Inc.
Common
WALL
•
,
E. Lee
Common
Gas
■ /
of the New
Dealers
Waldorf-Astoria
Subscription
to
dinner
Security
Allen
whole is
approximately
at
'
February 17lh
The annual
Ohio Match
FASHION
Associated
•
Members New
64
Europe
address
1955
'**•$}'' •/
York Curb Exchange
Teletype NY 1-1140
Security Dealers
a
This
Dealt in on New
-
Frank C. Masterson & Co.
Members of the committee in
brave in the summer of 1944, as we
keep underground chan¬ expect,1 the average of the FRB charge of the dinner are Herbert
of
delivered by Governor
Bricker before the Ohio Newspaper Asso¬
ciation in Columbus, Ohio, Feb. 4, 1944.
*An
239
over
^
substantial portion of their
a
meas¬
for infor¬
significantly, if at all.
If, the
and their
imperishable. European phase of the war ends
nels of information open.
Members N. Y, Security Dealers Assn.
Teletypes—NY
a
at
as
unceasing
peoples
death to
St., N. Y. 5
and
ured by the FRB
v;%v"v,
;
Cycle
the
desire of people
The
Products
Common & Pfd.
Bell
unknown
perspective of the known.
Peoples Light & Power, Pfd.
37 Wall
With¬
revealed truth,
jeopardy.
out knowledge and
Public Service
Coated
fighting forces
mob and civiliza¬
tion would be in
Plain Pfds.
Standard
kept
were
V'lb'f 'V;
earnings.
Thus, raw
prices
advanced
only
during the year, wholesale
prices 1.9% and retail prices were
relatively stationary. The cost of
Economy
Industrial production
free
our
would become a
Moxie, Com. & Pfd.
a
in
the War
and
Truth
through
Position
Our
open
an
untrammeled radio and
to speak without re¬
Without open lines of
communication
Laboratories
Mont
revealed
A "
material
The
•
services,
without
communication.
line
Telephone: WHitehall 3-1223
Bell
*
4.9%
report itself is a lengthy
self-government
document and the editor of 'The
progress
Debentures
increased
"The
communication
without
Street, New York 5
5'/2 %
New York A. C. 2s,
'v:
of
living index of the National In¬
dustrial
Conference
Board
ad¬
by free people is utterly depend¬
Letter' must assume responsibil¬
vanced 2.7%. It should be under¬
ent upon the preservation
of a
ity for the following digest stood that these
free press and free speech.
figures do not
which is presented without quo¬
include black market prices or
When the mind of man is free,
tation marks since the necessity
uncontrolled
luxury
items,
in
truth will conquer error in his for
condensation
requires some
which substantial advances did
reasoning. But truth must be re¬ changes of exact language."
take place.
vealed to men.
People, like an
(Continued on page 606)
army, / cannot
move
forward ECONOMIC CONSIDERATIONS
Indiana Limestone
Common
save
War
World*
a
past fiave had an unusually good
the record for accuracy.'
and
'news.
of
maintenance
Building
%s, 1963 with stock
Income 6s,
opinion
public
dissemination
of
present.
Neyertheless, Mr.
Sweet's annual forecasts in the
are
W. Bricker
John
great program
of formulating
&
treat Amer. Industries
Prices
serves.
Price indices in 1943
ion
ha
radio
,r
*5%
Letter" says•. "any forecast/is
this
g e n e r a t
COrtlandt 7-4070
Telephone
Central States Elec. (Va.)
sub¬ relatively well in hand through
the combination of price controls,
ject both to human error and to
some
increase in the supply of
the
unpredictable ?; developments
which must be expected at all goods and a disposition on the
times, and particularly when the part of many of our citizens to
to
about.
During
New York 5
31 Nassau Street
Bell
think
%
office of Fenner &
Orleans
New
WHitehall 4-8120
Broadway
Bell System Teletype NY 1-1919
Following the practice of Hugh W. Long & Co. for the past two
they have presented in the current number of "The New York
Letter," issued fortnightly by them? a digest of the report and fore¬
cast which Mr. Philip W. K; Sweet, President of Investors Manage¬
ment Company, Inc. and of Fundamental Investors, Inc., presents
each year to the Directors of Investors Management Company and
the investment companies which<S^-~————
—
. ■
pro¬
something
Members New York Curb Exchange
65
was manager
the; investment division of the
of
and who have
Vanderhoef & Robinson
he
Members New York Stock Exchange
Woolfolk,
years,
citizens
can
In the past
Inc.
&
Common & Preferred s
Your
duced
who
i\;r
that
has
Wheeler
for
ment
Dumont Laboratories '
y
Edward A. Purcell & Co.
depart¬
trading
Investment Policies For 1944
ances-
tor.
field
ff
pro-
of
spirit
U. S. War
of the
Utility Svce. Pfd.
.
and
fession
t
818
formerly vice-president and
was
manager
\
the
BUY
American
Wtfeeler
Mr.
Street,
5%% Pfd. /
Peoples Lt. & Pr. Pfd.
<4>-
Those
Members
;
Lynch,
Beane,
&
Fenner
Pierce,
William Maxwell established
Merrill-
with
sociated-
of the Northwest Territory, "The Cenfinel of the
North-Western Territory."
It was located on the banks of the Ohio
River where the great city' of Cincinnati now stands.
The editor
was a legislator and jurist—a strong,
self-reliant pioneer., He did
much to fix the patterns of journalism throughout this territory.
WOrth 2-4230
Bell
Mac-
—
refy .B. • Wheeler has become as¬
the first newspaper
Broadway, N. Y. 5
ORLEANS, LA.
NEW
;
One hundred and fifty years ago
Baltimore Stock Exchange
120
Everywhere
|
'
Autocracy And Slavery At Home, And Wars and De¬
Mevibers
branch offices
England Gas*& Elec.
||
{Special to The Financial Chronicle)
Calculated Attempt-Of
Administration To Discredit Press And Bureaucratic
Efforts To Control Radio—Declares A Free Press Can
Make A Free World But A Controlled One Means
done your part in
War
New
Lynch Firm
?"
Condemns
Bricker
Governor
KNOCKOUT!
4th
the
our
NY 1-423
NOW
FOR
Have you
NY 1-1557
La.-Birmingham, Ala.
Direct wires to
Hacrery
liSThe Freedom Of The Pressfif Merrill Wheeler With
THE
Exchange
York 4, N. Y.
HAnover 2-0700
Stock Exchange
York
New
1-672
NY
Steiner, Rouse & Co
ftfC PONNELL & CO.
NEW YORK 6, N. Y.
BROADWAY
115
Walworth Pfd.
•
Y. Stock Exchange and Other Principal Exchanges
Members N.
v.
Security Dealers Ass'n
Apco Mossberg Co.
Warren Bros. Class "B" & "C"
11
Goodbody & Co.
KING & KING
York
®
IlilSi placer development
Dumont Laboratories
Established 1920
Birmingham Elec. 7%
Remington Arms
KERR ADDISON MINES
Superior Tool & Die
New
Birmingham Elec. 6%
American
Markets in U. S, FUNDS for
BUL0L0 COLD DREDGING
Triumph Explosives;
Members
Cyanamid Pfd.
Botany Pfd. & Common
We Maintain Active
United Gas Improv.
.
.
J
Simons, Unburn & Co.
74
St., New York 4, N. Y.
T-oIP
MY 1-21(1
Security Dealers Ass'n
Trinity Place,
N. Y. 6
Teletype NY
Members New York Stock Exchange
25 Broad
Y,
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Wires to
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Buffalo
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Robert
30 Pine
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St., N. Y., DIgby 4-7900
Bell
-
C,
to
New
Teletype NY 1-1790
York
Security
Dealers
Ass'n
Special
Letter
late
available
on
interesting
developments.
T. J. FEIBLEMAN & CO.
Members
New
Orleans
41 Broad Street
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Exchange
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Tele. NY 1 -493
Volume
159
THE COMMERCIAL &
Number 4254
FINANCIAL CHRONICLE
595
The COMMERCIAL and
CITY
FINANCIAL
Reg.
U.
William
v
■
v
25
B.
,■■■•■.'
CHRONICLE
S.
Dana
7*
Office
Patent
DELAWARE
BUY
Company
Publishers
\
BEelcman
Due
William
Dana
D.
Seibert,
Rlggs,
IW A R
.
President
1
'.V /■".
Thursday
and
records,
corporation,
clearings, state and city
Other
Offices:
Chicago 3, 111.
REctor
135
banking,
.
news,
S.
(Telephone:
Members
etc.)
Salle
La
STRAUSS BROS.
quo¬
32
St.,
charge of Fred H.- Gray, Western
1
Drapers'
Gardens,
London, E. C., England, c/o Edwards &
Dealers
Security
York
New
Ass'n
CHICAGO 4
:
by, William
as
8, 1879,
B.
Dana
Company
the
Act
MORTGAGE
Issued by
Canada,
ui
Europe (except Spain), Asia,
$31.00 per year.
All local Title Companies
Other Publications
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Monthly Earnings Record—Mth.. .$20
Tn
greater
J
^ewburger, Loeb & Co.
remittances for
foreign subscriptions and advertisementsmust be made in New York funds.
''
Members
40 Wall
York
New
Stock
Exchange
1-2033
NY
Teletype
-■
a
SEC To Nullify
President of the New York Se¬
curity Dealers Association, in a statement made on Tuesday, Feb. 8,
concerning the "5% Rule" of the National Association of Securities
Dealers, Inc., said:
Frank Dunne of Dunne & Co.,
"The
i ty
major5% "Rule" of
HE:
the
of
f
National Association of Secur¬
the New York
Security Deal-
in
ers
tion
o
of
tion
ac¬
their
ernors
adopting
recent
tion
in
the
resolu¬
(given in
in
.full
the
"Chronicle" of
Feb.
3 —Edi¬
tor) regarding
the '5% Rule'
of the Nation¬
al
o
Association
Securities
f
Dealers, Inc. In accordance with
the resolution, the New York Se¬
curity Dealers Association is to¬
day requesting the Securities &
Exchange Commission to direct
the NASD to submit the 'rule' to
its
membership as required in its
by-laws, and in the absence of
such action by the Commission
that it order a hearing be held on
said
further
he
wished to
emphasize that the New
Dealers Association
not approve nor disapprove
Board of Governors of the NASD
in the adoption and promulgation
of the "rule."
their
of 6ur Board
embodied in the
promptly in order to eliminate the
disunity and confusion
vailing throughout the
now
pre¬
over-thecaused by the
,
access
in¬
and
fited
both
as
v
by
Investment
banking houses and security deal¬
ers ordinarily find that the han¬
therewith, we
respectfully request you, to
now
direct the National Association of
Securities Dealers, Inc. to submit
to
matter
the
membership
its
as
required in Article IV, Section 2,
of the by-laws of that Association,
or in
the absence of such action
by
that
you,
hearing
a
on
matter be held before you,
given
Philadelphia, Pennsylvania.
HAnover 2 8970
present
point of view.
Very truly yours,
Moxie Co/ /%/■■
Emerson Radio
Mo. Kan.
to
independent status.
;
"without
It
an
them, private initiative
was
in the Charles
Members
New
Ill
ciated
634
Hook
has
There9s
to
curities
South
was
Spring
The Commission contended
sold
formerly
with Morgan &
securities
The way
department
of
the
that when the Hughes firm
office
of
Fenner
&
Merrill
Beane.
Lynch,
COrtlandt 7-6190
Teletype NY 1-84
SUGARS
as
we
Copies
see
on
them
Request
DUNNE & CO.
Members New York Security Dealers Assn.
25
Broad
'7'
St., New York ft, N. Y.
Tel. WHitehall 3-0272
the SEC attempts to show that a dealer's mark-
Panama Coca-Cola
•
Pacific Goad
$1
7
American Cable
dividend!
and Radio
paid January 15, 1944
SecMutiel
>
Dividends
1943—$4.50
1942—
3.65
Warrants
Approximate selling price 29
•
Mr.
Wyeth
connected
Los
Hmob&loM
170 Broadway
Bell System
$500 for
securities by approxi¬
substantially above the prevailing market
Co.,
in charge of the municipal
was
speed Victory
continued on page 611)
*
Prior thereto
Co.
better way
no
Court of Appeals
price without disclosure of the mark-up to the customer,
such practice constituted fraud and deceit upon the customer.
;
Street.
Y. 1-2480
War Bonds
Dealers, Inc., had fined a member-dealer
making it a practice of marking up
mately 10%. *
■ '
^
&
Assn.
|||||f Buy IfflfS:
registration of this firm for marking up securities on
the average by 25%, pointed out in their brief that a Busi¬
ness Conduct Committee of the National Association of Se¬
Chronicle)
Witter
with. Dean
Dealers
REctor 2-5288
broker
CALIF.—Sid¬
become asso¬
ANGELES,
B.
Security
Broadway, New York, N. Y.
justified in revoking the dealer-
"
LOS
York
Hughes & Co. case that the SEC,
attempt to prove to the U. S. Circuit
in this District that it was
Dean Witter & Go.
ney
Request.\
J. F.Reilly&Co.
(Continued on page 616)
v
Hughes & Co., Inc., has appealed the decision
on Dec. 10, 1943, by the U. S. Circuit Court of
Secretary.
(Special to The Financial
on
United States.
CARRET,
Sidney Hook Joins
*Mem6
dealer-broker
°
PHILIP L.
Teletype NY 1-1203
*Du Mont Laboratories
small'
desire
Case
Appealed To U. S. Supreme Court
&
Co.
Pierce,
Since 1893 *
NEW YORK
LOS ANGELES
Hon Rose STrsster
Established
Members N.
74
Angeles
»
y Securities & Exchange Commission
that
Charles Hughes Maik-Up
and an
representa¬
a
tive of this Association to
our
the
Broadway
Bell System Teletype, N.
in
accordance
In
he
February 8, 1944
39
New York 6, N. Y.
Now,
larger
re¬
solution.
Hook
SEC follows:
and
investors
concerns
maintain their
.
of the letter sent to the
INC.
In this way they have bene¬
competitors.
of
action
the
of
QUOTED
Information
Members New York Security Dealers Assn.
of Notice No. 119-L dated Jan. 26,
Cxovernors
V
L J. GOIDWATER & CO.
given these con¬
the, capital mar¬
to
cerns
kets.
registration, to the Supreme Court of the
A petition for the writ of certiorari was filed
in Washington yesterday. Charles Hughes & Co., Inc., who
1944
which was
mailed to all
are continuing in business as fully registered dealers pending
members of this Association.
the appeal, are represented by David V. Cahill and Murray
The majority of the members
of this Association have approved Robert Spies, members of the New York Bar.
Also enclosed is a copy
26, 1944.
SOLD
•
Statistical
and
handed down
curity Dealers Association on Jan.
expressed the hope that
the matter would be disposed of
risky
more
Appeals in this District wherein the Court upheld the action
a resolution adopted by the Board
of the Securities & Exchange Commission in revoking their
of Governors of the New York Se¬
of the ceiling or
mark-up, but takes exception to
the
methods
employed
by
the
A copy
4-6551
TITLE COMPANY
and have-thereby
of
Charles
<"
expensive,
profitable than those of larger
better known concerns.--Yet,
Enclosed herewith is a copy of
York Security
rule.
Street, New York
units
if, as Secretary of; Com¬
merce, Jesse Jones, has pointed
out, small business concerns "must
be maintained because they are of
the essence of democracy"
and
1944
•
business
sized and local
Board
its
Gentlemen:
opportunity
%
of
Letters
and Jan. 18,
ap¬
Board of Gov-
industry
Wall
BOUGHT
business
of
Governors Dated Oct. 25, 1943
Associa¬
have
proved the
counter
share
per
CERTIFICATES
the absorption
of
medium-
ities Dealers, Inc. Referred to
members
4
99
Pennypacker 0300
lishing markets for small and in¬
active issues of thriving concerns,
the
to
concerns
Requests Commission Hold
Public^ Hearing On/ Subject
f3-
V
local security dealers have
played an important role in estab¬
many
dustries
NASD 5% Rule
and
that v has
in
.]
mergers in
In Absence Of Such Action
He also
$17
many
prime fac¬
tor
led
1N. Y. Dealers Association Asks
l>s
at
Philadelphia Phone
2
more
less
in the
creation
,
STREET
moderate-sized
market
open
cases
principle
Common
" 7
dling and distribution of the se¬
curities of relatively small
and
e
firms
money
is
WHitehall 4-6330
St., N. Y. 5
Bell
the
.
Economist of the Federal Trade Commission
borrow
can
NOTE—On account of the fluctuations
an
ease
yr.
In the rate of exchange,
does
•=;
s
Handicap Small Business
which
large
Bank and Quotation Record—Mth. $20 yr.
Dunne
■
inability to obtain capital through the ordinary channels of
t.
e n
with
Mr.
-v..-
public invest-
N. Y. Title & Mortgage Co.
Australia and Africa,
the matter."
WALNUT
PHILADELPHIA
Formerly
relative
Lawyers Mortgage Co.
$27.50 per year; South and
Central
America,
Spain,
Mexico
and
Cuba, $29.50 per year;
Great Britain,
Frank Dunne
7- i
7
During the last decade, there has been a great hue and cry in
political circles over the handicap of "small business."
But in the
many discussions of the problem that have taken place, the jchief dif¬
ficulty of small business concerns have been overlooked. Small busi¬
ness in competition with large undertakings suffers chiefly from its
t
•;
.
Continental
V-
i-
Complete
CERTIFICATES
March
of
Subscriptions in United States and
Possessions, $26.00 per year; in Dominion
of
.
By A. M. SAKOLSKI, City College/New York
second-class matter Feb¬
under
Quoted
—
v
"
ruary 25, 1942, at the post office at New
Y„
1528
2-0790
¥Jill
Harrison 2075 -7"Teletype CG 129
DIgby 4-8640
Teletype NY 1-832, 834
v
N.
.
How NASD Profit Limitation Rule
Smith.
Reentered
'
Board of Trade Bldg.
Broadway
NEW YORK 4
State 0613),
in
1943
.7
ORLEANS, TEXAS
MEXICO RY. CO.
Telephone: WHiteliull
Representative;
Copyright
Sold
—
7;
&
We offer
shares
Monday
(complete statistical issue—market
tation
,
NEW
August 1, 1968
advertising issue)
and every
'>
'*->
New York Phone
every
;
1'
:
prior sale,
225
flilllfYARNALI, & GO. /-MS©
week
a
Due
Bought
BONDS
'
news
1973
TURNPIKE REVENUE 3%% BONDS
Manager
1944
10,
Published twice
' '
>
Business
Thursday, February
(general
August 1,
to
COMMONWEALTH OF PENNSYLVANIA
Herbert D. Selbert,
William
AND COMPANY
Subject
3-3341
Editor and Publisher
•
»[icmtnsifii
RIVER JOINT COMMISSION
REFUNDING BRIDGE 2.70% BONDS
Spruce Street, New York 8
.•
York,
PHILADELPHIA BONDS
OF
Jan. 1, 197S/62 and Jan. 1, 1975/65
Members Los Angeles Stock Exchange
1914
Y, Security
Green
9-7400
& Co.
Members New York Security Dealers Assn.
Trinity Place, New York 6, N. Y.
Telephone:
Teletype'.
BOwling
C. E. Unterberg
Dealers Assn.
NY
1-375
61 Broadway,
New York 6, N. Y.
Telephone BOwling Green 9-3565
Teletype NY 1-1666
Thursday, February 10, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
596
BOSTON
We
'M
interested in offerings of
are
;
Art Metal Construction
High Grade
Warw&Co.
•
•
i
;{ .-'.V.';vV
j
.
ACTUAL TRADING
'•!
/
Spencer Trask & Co.
Steel
Wickwire Spencer
Stock Exchange
Members New York
Alegre Sugar
Sugar
Vertientes Camaguey
•
^"?f<v
*'
'v*
' r,'f
du
! u *
,
*
; BOSTON 9, MASS.!
Capitol
!
^
Bought~-*Sold-*-Quoted
NEWARK
Nut Com. & Pfd.
Laboratories "A"
Telephone Bond & Share 5/58
/
'i
{ 1
4
)'
I
,
Light & Railways (w.i.)
t
,
Pfd.
Peoples Light & Power
f
'
*4
' '
*
.
'
f x
American Insurance Co.
*
\
Bought-Sold-Quoted
,
Bristol & Willett
;
*
"General Instrument
Lumber
'"Long Bell
Members iN.Y* Stock
Mills
"Southwest Lumber
NEW YORK
Pfd.
Worsted "A" and
Triumph Explosives
Pollak Manufacturing
Botany
«
CHICAGO
Oil
Auto
'
BOUGHT
.
1
••
i
■
Airlines
Export
Corp.
^^
.
SOLD
-
Co.
&
Hoe
American Gas & Power
Deb,
Company
Consolidated Elec. & Gas Co.
.
3-5 ydue< l9o3:
%
$
ColL "A"
;
;
'
,
Federated Utilities, Inc.
i
Jacksonville Gas Corporation
fy/p due 1957 j g
1st Coll, /
;
Corp.
5
Public Utilities Consolidated Corp.
.
due 1951
Seattle Gas Company
-
1st & Ref. 5
1st &• Ref. 5
.
Northrop Akpraft
... :•
Petroleum Heat & Power
Rohr Aircraft
Southern Cities Utilities Co.
Lewis
&
Giddings
{.
,
,
v
Deb.
due 1954.
Appliances
Bendix Home
"
Haskeli te
'
•'
•
'
v,
"Doyle Machine Tool
.
.
-
New York
Chicago
4
'
'
S
%:'<* 'M:
' '
'
"
K'
.
\tl, ^
' "
Surplus Property Board Proposed
Tokheim Oil Tank & Pump
Bill
Patman
Chicago Tractions
All Issues
RFC
J Amending
Act Creating Surplus
N.- E.
N. E.
Pub. Serv. 7 Pfd.
Conn.
Light & Power
Transit
Utility Service Pfd.
Syracuse
American
Cons.
Iowa
Elec.
&
Gas Pfd.
Southern UtiJ.
Nassau
,
Com.
Suffolk Ltg. Pfd.
&
Queensboro Gas & Elec. Pfd.
'
Puget Sound Pr. & Lt.
^Mass.
Power &
Lt. $2 Pfd.
Central
Railroad
of N. J. 5s
Chicago
N. W.
& 4s
Conv. 4%s
Inland Power & Light 6s
Washington G. &
E. 6s
1960
other things that "the sale or lease
of such property should take into
consideration the need for facili¬
tating and encouraging the estab¬
Indiana Limestone 6/52
Central
Public Utilities 5'/2S
Missouri
lishment in the various commun¬
Pacific Gen. 4s
ities
Missouri Pacific Conv. S'/js
Gas & Elec. Issues
Associated
or
wire orders at
our
Request
Members N.
120 Broadway,
Y. Security Dealers Assn.
N. Y.
REctor 2-8700
Direct
BOSTON
—
Eitabluhed 1926
Teletype NY 1-1288
Wires
or
to
HARTFORD
.
—
PHIL A.
release
from
LUMBER
,
of
BOUGHT
thereof, by
it appears,
803
enterprises."
by
18, and
Committee
Rep.
was
on
Patman
on
referred to the
Banking and Cur-
follows:
the
Corpora¬
Finance
by adding a new title
relating to the sale or
Act
thereto
surplus prop¬
erty of the United States. ;
Be it. enacted by the Senate and
House of Representatives of the
other disposition of
i
r
M
v e
and,
New
Alliot,
Fewell
M.
Whitlock
to
Exchange.
ber
of
the
and
Fred
membership
in
the
S.
welfare or-,
ga
nizations
seventeen
and
national
Julius
' war
A.
Rippel
benemed from the efforts of volun¬
teers
directed by "Mr. Rippel.
agencies
Mr.
the
St/k
is a former presi¬
Rippel
of
dent
Bond
Club
of E. F. Hutton
& Co. and Mr.;
Whitlock is a mem¬
ber of Farr &
Co. and a member
of the New York Stock
a
trustee of the
Fund.-1-
'
s,
Co.
SAINT LOUIS
of New
'
Bell
809 OUVE ST.
System
Teletype—SL 80
Members St. Louis Stock Exchange
Morris County
•
.
| Available On Request
-
Schenley Distillers
prepared
have
an
Corporation
attractive book¬
the
first
let
containing
cles
in the series they have
arti¬
been
the running in the "Financial Chron¬
Mr. Fewell is a mem¬
firm
L. D. 240
Pittsburgh Rys. Look Good
Feb. 5 the election of
on
Landreth Bldg.
health and
Trust
Cotton^ Exchange, an-
York
nouncecj
of
President
QUOTED
Teletype—SL 486
said, sixty
Elects Two New Officers
Eric
—
ST. LOUIS 2, MO.
Segal
r.
is
Travis
H. R. 3873—A bill to amend
Reconstruction
D
to such Act (except in
N, Y. Cotton Exchange
SOLD
Peltason, Tenenbaum, Inc.
Fund:
War
therein as a ref¬
the Jersey, a member of the special
short title of such Act), and in¬ committees
of the
Investment
serting in lieu thereof the word Bankers. Association and of the
"title," and by adding at the end
directing committee of the Na¬
of such Act, as amended, the fol¬
tional Association
of Securities
lowing new title:
(Continued on page 604) . . Dealers for District No. 13. He
ever
erence
—
Rippel took a
leading'; part
active
The text of the bill which was
tion
before the first section
striking out the wold "Act" wher¬
as
rency,
War»&Co.
by
well as by others, of small
business enterprises and with a
view to strengthening small busi¬
duty,
Dec.
on
of
introduced
expense
*Circular
States
the
armed, forces of
the United States upon their dis¬
ness
Phone
several
the
in
members
charge
INSURANCE STOCKS
LONG BELL
•
in the Newark
introduced by .Wright Patman, with the unan¬
membership of the House Committee
on Small Business, of which he is Chairman, the establishment of a
Surplus Property Board is provided, whose duties will consist in de¬
termining and prescribing "the methods to be used by governmental
agences in making and maintaining inventories of surplus property"
of the United States, and also to
—'"
""
■"
/•': '••- ,
determine
the surplus
property United States of America in Con¬
gress assembled, That the Recon¬
that should be sold or leased, as
to
which
the Board would
be struction Finance Corporation Act,
as
amended, is amended by in¬
called upon to inform the Recon¬
serting "TITLE I," immediately
struction Finance Corporation re¬
garding such determination.
It is stipulated in the bill among
PH 265...
N. Y. WH 3-7253
ing
Club
of
Newark.
Mr.
imous endorsement of the entire
Serv. 6 Pfd.
Pub.
,
ST. LOUIS
Advertis¬
the
bill recently
a
4488' \
r^K
awards
committee
Property Board — Would Govern Sale Or Other
Disposition
Of Such Property And Provide For
In
Tel.
&
Serv.
Pub.
Philaw RIT
I. Se¬
chairman
of the
and Com.
Illinois Power Div. Arr.
"Central; Electric
Philadelphia 2, Pa
Bell -Teletype *-
Rippel, president of
Rippel, Inc., 744 Broad
1943, it was
by
gal,
Strengthening of Small Business
Southwest
A.
Herbert
Maryland Casualty
Walnut St.,
1529
announced
Ordnance
Harvill Corp.
BUCKLE^! BROTHERS
/..J
Street, Newark, N. J., was chosen
as
Newark's Outstanding Citizen
Minneapolis
Milwaukee
Boston
2, N. Y.
A.
Julius
Julius
\
t
Bily n
./URippel Named
Bulslanding Citizen
;
for
A. E. Staley
Auto
due 1958
'
& Thermit
"Metal
:
M
L
"i;
'
f/
V
Members New York Stock Exchange..
'J.
Incorporated
•
,
'•
"
»;•••
Members Philadelphia Stb'ckllxchange
a.c.allyn«®company
......
*■■
"Richardson,
'
r$«f
Telephone—Triangle..5T5054.
?;
:,t
•
Haloid
:
-
16 -Court St.,
-
& Swasey
Warner
}5
)
,
•
44.-*j:
due 1958:
1st Coll.,. r 5
Telephone Bond and Share Co,
1
a
Whelan
Vicana Sugar
"
V(,V«g
Foundation Company
'
United Cigar.
i
I
Security Adjustment Corp.
k
"due 1950";;
,
v*.
L':..'4x'^>'rv.; :f\'i<c;
h? ^
^&;'.'Hv:M-;RbBeH5bn'";"
Long Bell Lumber
Graphic Picture Of American
A
.
Airlines
ConsoL Water Company
/We maintainimarkets in:
;*J. > i'» ^
Business And financial Cycles
.'
-dhiw 1948-
1st
South Bay
National Airlines
i
1st
due 1967
/5
"
New York Water Service
Majestic Radio
'*
Mid-Continent Airlines
/
1st
.
•
Loft Candy
Northeast
,
PHILADELPHIA
During All Wars frpm 1775 ;
to'1944"
' " -
due 1962■§».
/• '/ C".* *!>•*!•%■■.
:
,
Airc/aft
•Kellett
;
'
Depressions"
.
R.
:; MArket 3-3430
"Business Booms &
QUOTED
-
.....
Magazine Repeating Razor
"Great American Industries
i
,
N. Y. Phone-^-REctor 2-4383
-
.
Aircraft.•
American
Eastern.
1891
18 Clinton St.,; Newark 2, N. J.
FREE CHART
-
.' >
,
Remington Arms
Aeronca
Rippel A Co.
Established
.....Z
,
Car
Mokan
J. S.
Teletype NY 1-1493
.
„
Pfd.
Hearst
j
N/Y.;^|ag|v
to
Telephone BArclay 7-0700
Bell System
Lanova Corp.
South Shore
Jersey Insurance Co.
?
-
TELETYPE NY 1-672
BARCLAY 7-0100
TELEPHONE
' ' '
-''
105 WEST ADAMS ST,
,
NEW YORK 6;
,,
..
,,
Broadway
15
1
Exchange and.Other Principal Exchanges
115 BROADWAY
Established 1920
•^
York Security dealers Assn.
-
^
(Newark)
•
Members Neuf
Goqdbody & Co.
Co.
Hartford Empire
Co.
Firemen's Insurance
-
of Newark
United
''Crowell Collier Pub.
1
Teletype BS 424
4330
""
;
Mallory
Bank Building
Shawmut
;
Merchants Distilling
P. R.
■>
-
•
Elastic Stop
*Du Mont
Corporation
Stockyards Preferred
Pont, Homsey Co.
5% Preference
-v-
Pfd.
Moxie Com. &
vvU*v*'
r
Teletype NY 1-5
Telephone HAnover 2-4300
'•
United
v,s *,*v,•• -t -t
•;,•
Co.
25 Broad Street, New York
Emerson Radio
United Elastic
Cyanamid
;vc4\v■ f.;-j,;/
Stromberg Carlson
Co.
Securities
Christiana
Remington Arms Co. :
PREFERRED STOCKS
Jgv' MARKETS
Punta
American
Public Utility and Industrial
i
.; 'v
v'.J ; fc'r..'
Bird & Son
,
Exchange.
icle."
be
Copies of this booklet may
had
to Mark
ley
upon
request by writing
The
current
man
York
&
Co., 41 Broad
City.
only,
350
request
from
Fifth Avenue,
New York 1, N. Y.
St., New
esting study, which is available to
dealers
Corporation,
in Pitts¬
Copies of this inter*
Merit, in care of Schen¬
Distillers
situation
burgh Railways System, particu¬
larly certain of the underlying '
bonds, offers attractive possibili¬
ties for appreciation, according to
a study prepared by T. J. Feible-
Co.
may
be had upon
T. J. Feibleman &
Volume, 159
THE COMMERCIAL &
Number 4254
Tomorrow's Markets
Orders executed
Walter Whyte
INVESTMENT DEALERS
desiring to merge their facilities with those of a
larger firm are invited to get in touch with us. This offer
is made to dealers anywhere in the United
States, regard¬
less of whether or not they are located in cities where we
Exchange
Under
of
10 AM. to 5:30 P.M.
^dribble away from offerings
i —In
the
meanwhile
bids
J
plan
our
three
have taken
we
dealers
in
the last
2
Aldred Investment Trust
:.v'
:
4*/2V 1967
the business and staffs
over
We are prepared to
Arrangements can also
years.
Brown
buy all assets, including good will;
be made allowing dealers to resume business under their
War Time
Eastern
have
now
Open from
unit beginning to
as a
597
Dealers
San Francisco
Stock
Market
on
.FINANCIAL CHRONICLE
show no tendency to increase
—Possibility of move down
before any up puts stocks in
v
questionable
in
stocks
most
There are
j. exceptions,
butwhatever
they are, the general market
^no longer shows the quality
of buying which makes for a
rally.
INVESTMENT
64
/
Sacramento
of
_
Wall
BOSTON
Albany
.
Street
don't
reasons
concern
WILL
I
What
STOCK
A
BY
With
EXCHANGE
THAT
FIRM,
at
in
CAN
YOU
PACIFIC
SOUTHERN
Syracuse
Stock
a;
firm
of
loss.
able
may even
losses
are
not discern-
at
this
writing.
But
markets
are
seldom
kind
enough to sound off with
warning bells telling us about
it.
There
these
Put
v
:
Call
&
Brokers
Pine
30
i
"
to
office
Dealers
and
Street,
N.
Y.
Assn.
serve
a
tact
of
covers
and
above
10
draft age.
Commercial
Ex-,
Eiecl New Officers
Correspon¬
President: Preston
Mead, Irvine & Co.,
A.
Taylor,
*
The
*
.
Leo
Governors
Boyce,
Kriegel,
tinues
from the war
fronts.
But good war news
has yet to get our market
anywhere on the up side. At
least, it hasn't up to now. It
wmight, however, have an ef¬
good
Chronicle, 25 Spruce St., New
ago,
bill
count
tax
Long
the market knew such a
would
pass
and dis¬
counted
But
contention.
it.
the
now
It
same
doesn't
_
_ls
•
(three
H.
L.
year
O'Neill, Stein
and Robert • A.
terms):
Bros. &
Warren,
Baker, Watts & Co.
Governor
(two
year
term):
Harry M. Sheely, Harry M. Sheely
& Co.
On Feb.
House
a
1,
Representative
resolution
another facet to this
problem
(Continued
has
on
come
page
600)
up.
HAnover 2-0980
WILLIAM St., N. Y, 5
Bell Teletype NY
1-395
v
Toronto
Montreal
New York
Dewey (ReprTll.) introduced ih the
which he terms a rewrite of a
(H, J. Res. 22-3)
stabilization of currencies and reconstruction, etc.
His original resolution (H. J. Res. 207) was introduced on Dec. 16
last, and a reference to it ao-^
DEFINITIONS
peared in our issue of Dec. 30,
page 2669,
wherein it was re¬
Sec. 2. As used in this joint
Opons In Cleveland
Lilienthal
Street/
New
&
Co.,
25
York City,
members of the New York Stock
Exchange
and
other
exchanges,
announce
the opening
of sales
headquarters at Union Commerce
Building,
Cleveland
Ohio, : in
charge of Carl E. Dyas.
Mr.
sales
Dyas
was
department
land Office of
formerly in the
of the Cleve¬
Blyth & Co., Inc.
Steady and substantial growth
of the "Utility Group"
in earnings
on
Dec. 17, at
the
who
was an
Assistant Secretary of
the Treasury in the Coolidge Ad¬
ministration,
Financial
(2)
United
and
Adviser
to
States
Poland
as
soon
it is
as
the
Congress;
before the Senate.
now
mittee of the fund.
....
RECONSTRUCTION
CENTRAL
Rep. Dewey follows:
lished
Inc.
There is hereby estab¬
Sec. 3.
,
reconstruction
central
a
fund which shall be administered
as
provided in this joint resolu¬
There shall be in the fund
165
Broadway, New York
two accounts as follows:
(1) A revolving fund account to
it is hereby authorized to
appropriated not in excess of
$500,000,000.
^
which
II. J. RES. 226.
be
JOINT RESOLUTION
.
To
provide, for a central recon¬
joint account with foreign gov¬
ernments.
struction
fund
to
for
be
used
rehabilitation,
ticipation by the United States in
the United Na¬
tions and the nations associated
activities "among
them
in
the
Copies of this circular discussing
the situation may be had upon re¬
present war,
with' -respect
to - rehabilitation,
currency stabilization, and the ex¬
tension of* long-term- credits for
reconstruction purposes, the en¬
actment of this joint resolution is
quest* from Adams & Peck.
necessary.
Peck, 63 Wail St., New York City.
HODSON& COMPANY,
FUND
tion.
The text of the bill just intro¬
duced by
com¬
on
stabilization from 1927
to 1930, that, it is his belief that
hearings on the new legislation
will be held by the House Foreign
Affairs Committee
com¬
the executive
means
and Plain Preferred stocks of New
Mi»ne-
Bell
"Board" means
Governors of the
of
hereafter appropriated for admin¬
the
Incorporated
New York 5, N. Y.
Teletype NY 1-897
v
63 Wall Street
term
(3) .The term "executive
mittee"
currency
UNRRA bill has passed
The
Board
An administration account,
which shall consist of amounts
RR; Situation Attractive
:rederic H. Hatch & Co.
fund.
in
of
Universal Match
vided for in this joint resolution.
have increased the speculative at¬
traction of both the. Prior Lien
stock
.
.
Interesting Situation
Common
Minneapolis & St. Louis Ry. i
Penn. Bankshares & Sec. Pfd.
ported testimony bf Mr. Dewey resolution—
regarding the'proposed legislation
(1) The term "fund" means the
given before the House Foreign central reconstruction fund pro¬
learn from Representative Dewey,
Broad
Com.
Lawrence Portland Cement
resolution he previousfyt introduced, providing for a central recon¬
which time he urged adoption of
his new international plan.
We
Hirsch, LiEienShal
Hirsch,
Cyanamid, Pfd.
Eastern Sugar Associates,
struction fund to be used in joint account with foreign governments
Affairs Committee
apolis & St.. Louis Railroad offers
dis¬ interesting possibilities according
to a circular issued by Adams &
thing twice.
5s, 1965
American
(2)
istrative
incident
to
carrying out the joint provisions
of this jont resolution.
expenses
PARTICIPATION
IN
JOINT
*
of
*
York 8, N. Y.
stabilization of currencies, and
England Public Service Company
reconstruction, and for other
according to a detailed circular on
the
situation
purposes.
prepared
by
Ira
Resolved
by the ' Senate and
fect if the news turned bad. Haupt & Co., Ill Broadway, New
York City, members of' the New House of Representatives of the
So much for the war news.
York Stock Exchange and other United States of America in Con¬
leading national exchanges. Copies gress assembled,
:
of this interesting circular may be
,♦
On the home front the tax
had from Ira Haupt & Co. upon NECESSITY FOR LEGISLATION
bill
just passed by both request. •.
Section 1. Because of the need
Houses
is J the j immediate
for coordinated and efficient par¬
.bone
Winnipeg Electric
for rehabilitation,
M.
*
which
may be
said to effect the market con¬
news
V
5*/28,. 1957
Financial
&
Hearings Expected To Start Soon On Measure Drafted
By Representative Dewey
Vice-President: R. Emmet Brad¬
_
teeth and
Steep Rock Iron Mines Ltd.
Box S 8, The
Currency Stabilization
officers for 1944:
John
just because a sta¬
tistical position is promising.
1948
Fund For Rehabilitation And
BALTIMORE, MD.—The Bal¬
Security Traders Associa-tion have elected .the following
which
on
6s,
work—
timore
Treasurer:
holding
Restigouche Company
trading, con¬
portfolio
dence invited,
,
S
Minnesota & Ontario Paper
5s, I960
52
Davies.
vin gritting one's
paper
6s, 1944
Proposes Central Reconstruction
Secretary? Jobn> G* Chenoweth,
Jr., Baker, W^tts & Co.
thought
showed
enough get-up-and-go to re¬
sult in profits.
Up to this
writing the potential prof¬
its remain: potential.
This
doesn't mean that they won't
go up some time in the fu¬
ture, but sitting with stocks
when the most they can do
is add fractions to a buy price
isn't my idea of trading.
I
have no objections in telling
you to hold on when there is
a
backlog of black ink to
work against.
I don't believe
1950
HART SMITH & CO.
the end of this ley, Mackubin, Lejgg & Co.
I
1952
InternatT Hydro Electric
dis¬
ing small N. Y. office.
perience
the
counties
firms, banks,
of-town firms desirous open¬
Chronicle, 25 Spruce St.,
New York, N. Y.
5
Baltimore Traders
exceptions;
are
at
are
' y
Company
6s,
Dallas
tributing dealers —also out-
member
opening
to
Box
WHitehall 3-9177
A few weeks ago I recom¬
mended a number of stocks
'
Fraser
:
Street. Attention N. Y. Stock
The Commercial & Financial
C0luxnh;<7':-:^
?
'v\y.
Williarasport
Exchange
securities,
Exchange
North-Central
Pennsylvania..
Members
.
.
result in a
True, the possibility of
or
severe
v
'
Twenty-five years in Wall
years
relative
branch
FILER, SCHMIDT & CO.
a
tions
v
Perpetual 4 %
7«,
Pittsburgh'
would like to negotiate with
OPTION.
YOUR
20
merchandising
AT
PRICE, ANY TIME
THE NEXT 90 DAYS, AT
IN
is
up one's account in
of those long-pull situa¬
Canadian Pacific
tying
one
Paper
1949
East Kootenay Power
PHILADELPHIA
,
Buffalo
experience
in all departments of the se¬
curity business, including the
TODAY'S
important, is
purchase of most stocks
present will either result
that
,;
.
New York 5
Security Executive
GIVE YOU A GUARANTEE,
.
us.
6s,
SECURITIES
,
v
now
Canadian InternatT
5s, 1955
PAY US $235 AND WE
current
reversal,
reasons
Hi. which will
be known some¬
time in the future.
Right
believe
Great Lakes
to account for the
reasons
V
,
Troy
Fresno
Oakland
Monterey
probably plenty
are
We
if desired.
war,
Established 1927
to
PURCHASE 100 SHARES OF
There
"
,
Francisco
Barbara
Santa
following suit.
are
wires
Private
coming down and offerings
c
of
advantages to dealers.
■
San
I
duration
many
R. H. Johnson & Co.
CO. 7-4150
14 Wall St., N. Y. 5
been
have
offers
Inquiries addressed to personal attention of Mr.
R. H. Johnson, will be held in strict confidence.
Members New Yotk Stock Exchange
Whatever the reason, bids
:
this plan
Schwabacher & Co.
zone.
By WALTER WHYTE
h
wires
after
name
own
Direct private
Company
5s, 1959
.
with
•
ACCOUNT UNDERTAKING
4.
Sec.
(a)
Despite the provi¬
sions of any other law, the Board
R. W. PRESSPRICH &
CO-
Members New Ybrk Stock Exchange
68 William
NEWARK:
BOSTON:
201
.
Street, New York
744 Broad St.
Devonshire St.
GOVERNMENT,
MUNICIPAL,
RAILROAD, PUBLIC UTILITY
8i
INDUSTRIAL
INVESTMENT
BONDS
STOCKS
of Governors of the fund,
estab¬
of this joint
resolution, through its Chairman,
lished
by section 6
Knowledge
.
Experience
*
.
.
*
Facilities
for Investors
the amounts in the re¬
account to partici¬
pate, (1) in joint account, to the
may
use
volving fund
extent
centum
case
of
of
of
not
the
any
more
total
one
than
50
per
cost
in
the
risk,
with
any
other government or governments
Wisconsin Co.
Adds Dahlman
(Special to The Financial Chronicle)
MILWAUKEE, WIS.
Jerome
(or with any duly
authorized
con¬
agent or agents thereof) and/or H/ Dahlman has become
nected with The Wisconsin Com¬
(2) to the limit of 50 per centum
pany, 110 East Wisconsin Avenue.
(Continued on page 611)
Thursday, February 10, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
598
,
please
in
.
Real Estate
Since
you
;
.
Securities
1929
contemplate making additions to your
to The Financial Chronicle)
(Special
Seligman, Lubetkin & Co.
Incorporated
.,'7.
.
Members
41
York Security Dealers
New
Broad Street, New
<,
,
Association
ANGELES,
CALIF.—
formerly with
to The Financial Chronicle)
OHIO —William
McKnight has rejoined the staff
COLUMBUS,
of Clarence O'Brien, 52 West Gay
the Foreground
that in this column, on
will recall
Dec. 3, 1942, we called
Operating expenses
were
$403,000.; Real estate taxes $242,000., leaving a net operating in¬
come
of only $151,000.
Percent¬
000.;
landlords were vigor¬
fighting to prevent the
Courts from declaring leases in¬
valid and here we have a turning
cember
78.98%,
McKnight
been engaged in
cently
attention to the bonds on the Broadway Motors Building and
suggested that the bonds seemed attractive in view of a backlog of a
lease of about one half of the space in the building to the General
Motors Corp. at a rental of approximately $750,000 per annum until
April 30, 1948.
"
■
We were surprised to read an$
come
of $1,738,000.
Percentage
article in one of the newspapers
of occupancy was 94.46%.
this week that the management
In 1943 at the $2.18 rate, the
recently sought to have this en¬
tire
lease cancelled!
According rental income was $737,000, To¬
tal operating income was $796,to the article the court action was
age of occupancy Was
The 1932 fiscal year
Mr.
Street.
ment service.
Harris, Upham
Sixth Street.
Chronicle)
(Special
The
to
PASADENA, CALIF.—Frederic
Starr is now with John M.
COLO.—Wilson
DENVER,
has
Flugstad
with
affiliated
&
Co.,1 Security
Flugstad for a
was with Halsey,
become
Coughlin
Building.
Mr.
number of years
Stuart &
D.
.
Co., Inc.
Mitchum,
ously
cal
+
Bond
MAINE—George
redemption
credit
of
n
^
$25,full
bonds
outstand¬
of July 1, 1944.
The bill
and
as
of
creation
Retirement
is
State
a
-V"
Commission, to
of various
State
administer
will
which
Chronicle)
officials,
the
fund,
"irrevocably pledged to
retirement of presently
ultimate
U
both outstanding full faith and credit
previously with Townsend, Dab- bonds of the State of Missisippi."'
legislative
approval,
ney & Tyson, are now with Bond Following
&
Goodwin, Inc., 20 Exchange the measure was forwarded to **
Governor,Tom Bailey for signa¬
Street.
C. Dow and F. W. Hard wick,
(Special to The Financial Chronicle).
KANSAS
MO—John
CITY,
has
Latshaw
been
added
the
to
staff of Harris, Upham & Co., 912
ture and
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
^
CITY,S
KANSAS
ended De¬
P.
conclusion
DIEGO, CALIF.—Clifford the
SAN
MO.—Frank
his
foregone
Baltimore Avenue.
become affiliated
has
Thomas
31st, while the
year
faith
which
1943 fis¬ Hamilton is now with Barrett with II, /R. Baker & Co., 625
September 30th. Iierrick & Co., Inc., 1012 Balti¬ Broadway. Mr. Thomas was for¬
\
merly with Bankamerica Com¬
As
of
October
15th, 1943, the more Avenue.
pany and Wheaton & Roberts.
gross income of the property al¬
(Special to The Financial Chronicle)'
ready substantially improved and
point in our midwar business cy¬
(Special to The Financial Chronicle)
LONG BEACH, CALIF.—Archie
amounted to $822,000., indicating
cle where a landlord is trying to
SAN
FRANCISCO, :■ CALIF.—
a
net income before executive, F. Patterson has become connected
terminate a lease
;
One signifi¬
management
or
reorganization with Bankamerica Company, Se¬ Farnham Rehfisch has been added
cant
portion of the article is
curity Building.
Mr. Patterson to the staff of Blyth & Co., Inc.,
worthwhile
quoting:
"Economic expenses, interest and deprecia¬
tion of $272,100, or over 3% on the was formerly with R. D. Bayly & Russ Building.
factors do not appear in law re¬
Co., Crowell, Weedon & Co., and
first mortgage bonds.
ports, but the underlying cause
(Special to The Financial Chronicle)
The bonds currently selling" at Barbour, Smith & Co.
of the
dispute is probably the
'!v,P
-V!
1
*
SAN
FRANCISCO,
CALIF.—
about 27 % seem very cheap even
shortage of loft space in New
(Special to The Financial Chronicle)
Henry A, Stecher, formerly with
on this income,
and if rentals do
York City",
LOS ANGELES, CALIF.—Raotil Stewart, Scanlon & Co., has be*
It would seem to us that the increase, should be a bargain. To
come
connected
with Kaiser &
illustrate how really cheap the Mario has joined the staff of Rus¬
writer is probably on the right
*"
bonds are,
let us multiply the sell M. Anderson, 559 South Fig- Co., Russ Building.4
track.'
We cannot imagine any
issue
by
their
selling price— ueroa Street.
landlord
wanting
to
cancel
a
(Special to The Financial Chronicle)
X 27 equals $2,140,three-quarter of a million dollar $7,927,000.
(Special tp The Financial Chronicle)
SAN
JOSE, CALIF,—V. Mc290 for the entire issue.
There
a
year lease with such a respon¬
CALIF.— Leod Taylor is now with II.
are
451,000 square feet of rent- vLOSy ANGELES,
ago
years
for
consist
Tully & Co.
PORTLAND,
:
approximately
of
000,000
authorizes
,
a
1957,
houses of the Mississippi
Legislature
recently
approved a bill appropriating $21,450,000
of
the
State's
current
Avenue.
(Special to The Financial
in
•
ing
16 North Marengo
Mr. Starr formerly was
with Lester & Co. and
due
*.»
and
State
Both
State
Barbour & Co.,
Chronicle)
Financial
York
1968.
and
surplus
Chronicle)
(Special to' The Financial
-
.
& Co.,
Central Bank Building.
has. re¬
Govern¬
1963
5s,
canal
highway
1963-1965,
New
Of Bonded Debt
OAKLAND, CALIF.—Walter II.
Atkinson has been added to the
staff of George H. Grant
for
for
146.-
Mississippi Earmarks
$21,000,000 For Payment
II.
your
brought because the General Mo¬
tors
Corporation
attempted to
sublease one of their floors.
The
Court denied the motion and the
lease
remains
in
effect.
The
article went on to say that two
Hogle & Co., is now with
& Co., 523 West
A.
J.
(Special to The Financial
Real Estate Securities
You
Co.,
&
California
for
barge
serially
133.385
of 1950-1963;
maturing
165.084
due
5s,
4'4s,
Union Commerce Building.
(Special
Commercial Buildings in
Stacey
—
associated
McDonald-Coolidge
with
HAnover 2-2100
York 4
OHIO
CLEVELAND.
L. McNary has become
.
city's
that
1967;
to
3499
LOS
■
1950
Nashville 4s
James C. Kennedy,
(Special to The Financial Chronicle)
water
Calif.,
from
&
Chronicle)
to The Financial
(Special
Co., 75 Federal Street.
&
\
Street.
Co., 453 South Spring
for
152.4149
4'4s of 1969; 139.3378 for East
Bay Municipal Utility District,
with Fewel
affiliated
become
BOSTON, MASS.—Benjamin A.
Bailey is with Dayton Haigney
,
.
personnel
send in particulars [to the Editor of The Financial
Chronicle for publication in this column.
for
150.928 for Louisville 5s of 1962
and
If
150.523
1977;
refunding 4'4s of 1967;
Denver
Broker-Dealer Personnel Items
SPECIALISTS
of
4s
Island
ended
-
endorsement
that
fact
advocated its
had
he
a
was
view of
strongly I
in
adoption.
Columbus, Ohio, Restrained
From
Issuing Light
Plant Bonds
...
.
.
v
+
.
'•'
-
'
in
a
lu¬
re-
unanimous
decision, ruled
City of Columbus, Ohio,
cannot
issue
$824,000 bonds to
finance improvements to the mu¬
that the
#
The case was
an
appeal
taken by the city from a Common **
Pleas Court decision, which had
previously been upheld by John 1
H. Summers, Special Master Com¬
missioner.
Mr,
Summers
held
that* the city was without author¬
ity to issue the bonds on the
ground that it has exceeded its
bond issue capacity.
Th
expected to carry the case to the
Irving Lee & Co., First National
State
Bank Building.
Supreme Court for final
judgment.
r-y
.
<V
The Court of Appeals,
cent
nicipal light plant.
the
before
court
on
.
^
Motors
sible tenant as the General
Corporation, unless he was sure of
getting a larger rental from some
j able
area in the building which
means that you are actually buy-
ing into the property at less than
$4.75 a square foot.
You will
notice they received almost as
space is continually improving in. much as this in rental per square
Kew York City arid believe this foot in: 1932!
from
hear
many
a
previously
Crowell, Weedon & Co., has
sources
that the rental for loft and
will be
with
'
other tenant.
We
Homer W. Wessenford,
Municipal: News & Notes
office
factor in increasing the
secured by this
value of the bonds
61
Broadway
is
only
one
ex¬
ample of real estate bonds in the
Financial section of New York.
estate.
There is no
ceiling on the price landlords may, We feel that this section holds a
demand for this type of space . , .' very promising future.
The Atlas
type of real
Triborough
Graphic evidence of strong in¬
confidence
vestor
10th
the
in
seen
in
and
State
1943
during
credit
municipal
Price
Annual
registered
is
The
Offers
Authority,
recoveries.
Bridge
marked
entire
Halsey Stuart Syndicate
is
study
price
unique in that it is the only tabu¬
than
bonds
lation of its type in existence and
should be especially valuable to
rentals of the Corporation and the French Na~ being released by the Chemical
I tional Committee of Liberation Bank & Trust Company, New
York City.
Take
61
Broadway for ex- just entered into leases for large
The almost uninterrupted up¬
ample—rate per square foot re- 1 amounts of space in this section,
ceived
in
1943
averaged $2.18 It is also rumored that the United trend in prices for state and local
against $4.45 a square foot in | Corporation contemplates moving government bonds by the end of
1932.
There is
no
doubt that back to New York and will in 1943 had carried them to new
this
fluctuation was caused
by all probability locate in this sec- record tops.
At the close of 1943
aupply and demand.
If it is true tion.
Shipping concerns, steam- average prices, based on quota¬
tions
of twenty selected issues,
that the demand for office space ship lines and foreign diplomatic
is greater than the current sup-! offices
should also consume a stood at 1271/8, and average yield,
ply, it is reasonable to suppose large amount of space here after moving inversely to price, stood
at
that much higher rentals will be the war.
1.55%, down from 1.88% in
portfolio mahagers and others in
the determination of past price
movements
of
varying
quality
municipal issues.
we
yet
may
see
and
Yield
Survey
200
state
and
of
more
municipal
.
early 1930's.
Dollar and cents differ¬
secured.
above
for
the
follows:
the $4.45 rate, the
two years were as
1932
In
Broadway
61
to
ence
at
income
rental
was
$2,320,000.
P.
R.
Gertz In Seattle
(Special to The Financial Chronicle)
SEATTLE, WASH.—Paul Ray¬
mond Gertz is engaging in a gen¬
operating income was $2,- eral investment business from of¬
371,000; Operating expenses were fices at 8040-Fifteenth Avenue,
$330,000.; Real Estate taxes $303,- N. W.
000., leaving a net operating in-
"Total
issues
selling
were
provide
In 1933 similar
1942.
December,
rities
and
Fuller Building 6s
(G.
A.
F.
Realty)
IN
Available
on
Request
★
★
*
SHASKAN & CO.
Hill, Thompson & Co.. Inc.
Markets
120
and Situations for Dealers
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
gations
Member* New York Stock Exchange
Member* New York Curb
40 EXCHANGE Pl.,N.Y.
Bell Teletype
cent
sucli
Detroit,
obli¬
Cleveland,
Atlantic
and
•:
as
gained
longer
from
City,
65
maturity
as
to
Dfgby 4-4950
Previously
of
as
depressed
New
Authority
and
York
re¬
v
previous opera¬
by the United
Co.,
New
York,
from
;
than
the
trust company,
ceived a price
block of
5s
of
offerings.
example,
for
of
The
_
172.505
re¬
for
a
$10,000 New York State
1970; 140.587 for Massachu¬
from
in
valid,
counsel,
eral
for
direct and
Detroit
gen-
railway
4%s
the
of
payment
faith
Associated
which
credit
and
are
in
^Rie
offering
Equally
terms
politan
impressive
obtained
Life,
following:
by
as
156.9041
were
the
Metro¬
witnessfor
the
the
Rhode
V
are
Brothers, Blair > & Co.,Inc.,
Shields & Co., Coffin &
Burr, Inc.; Otis & Co., Incorpor¬
ated, Newburger, Loeb & Co.;
Lehman
R.
S.
:
Dickson
&
Co.,
Inc.,
laney, Ross & Co. and William R.
Attractive Possibilities
Indiana
Limestone
offers
in¬
teresting possibilities according to
a
report on the situation issued by
Lubetkin & Co., Inc.,
Seli<*man,
41
Broad Street, New York
**
,
Mul-
Compton & Co., Inc,
of
1949, and 120.826 for New Jersey
3%s. of 1951.
s
pledged.
1960; 120.008 for North
4%s of 1950; 116.17 for
street
.
of
obligations of the District
full
its
.
opinion
the
setts 4s of
Carolina
<•
The bonds are to be issued to
Railway Company and they will
to
the nature of the prices re¬
ceived ' for
Public
ranging
for the 1945 maturity to a
constitute,
$2,000,000.
various
dealers,
publicize the list
generally.
This procedure
ap¬
parently proved extremely satis¬
factory to the sellers, judging
rather
yields
provide funds for the purchase
by the District of $2,600,000 of
bonds of the Boston Elevated
a
about
at
the Massa¬
of
Department
York and Massachusetts.
out
involved
offering
issues
Port
the
approval of interest
price of 99% for the 1969 ma¬
turity.
The bonds, in the opinion
of the bankers, are legal invest¬
ment for savings banks in New
instance, incidentally, the
company
invited
bids
on
the
ranges.
State of Arkansas,
of
results
Trust
which
.
such
chusetts
In each
Exchange
NY 1-953
the
in
carried
many
i,
ject ■ to the
$10,000,000 of its holdings by the
Metropolitan Life Insurance Co.,
from
shows
114 %
rate and maturities by
liquidation of approximately
York, and
75
points during the period.
Last
year's advance, participated in
by virtually all issues included
in the survey, was particularly
marked for top quality liens in
having
the
sented
New
average of
with matu¬
25 years.
to
issues,
of
Elizabeth
REAL ESTATE
SECURITIES
Analysis
10
tabulation
individual
MARKETS
.
tion
.
running
a
from
The
TRADING
Specific evidence of the excep¬
high
prices .. currently
by State and muni¬
cipal bonds generally was pre¬
to
tabulations show¬
ing
1933-43
prices
of
twenty
geographically -4 selected
issues
ranging in .quality from AAA. to
bonds, due serially
1945-1969,
inclusive.
The bonds are being offered sub¬
Mass.,
March
0.35%
commanded
of
the survey are two
Included in
supplemental
Impressive
tionally
States
all issues in the study
,
yield
5.18%.
BAA
U. S. Realty 6s
9214,
at
average
an
banking group headed by
Halsey, Stuart & Co., Inc., offered
yesteday an issue of $2,600,000
Boston
Metropolitan
District,
Utilities
Prices
Recent
District Issue
Boston
A
City.
Copies of this report may be had
from the firm upon request.
J
Volume 159
THE COMMERCIAL 8c FINANCIAL CHRONICLE
Number 4254
599
'■
*
Specialists in Railroad Securities
•
•
Lease Line Railroad Securities
®
Western Pacific
Guaranteed Railroad Stocks
,
BACK
MAT;
Underlying Mtge. Railroad Bonds
Minority Railway Stocks
'Extra
®
Reorganization Railway Bonds
Selected
'
.
Situations
all
at
Times
GUARANTEED
55
,
——
zr-x?
PFLUGFELDER; BAMPTON & RUST
Atlantic
Unemployed By End of Year
predicting the defeat of Germany early in 1944, Paul
Babson, president of the United Business Service, declared that total
volume of business will probably decline from 10 to 12 percent below
1943.
He said that this will be due to the fact that war output will
After
expand.
:■ y
opinion, the reconversion process will not be
the
end
ment
is
Coast
Line
stock
has
active
been
and
Bought
considerably
ville & Nashville has made significant progress
considered as among the rail- *
in recent
Trade
Old
roads
having "better-than-average
post-war
prospects.,
Coast Line
of
the
stock
&
Louisville
Nashville
51%
control.
results will remain
that net
high
,
.
596,700 shares
owns
representing
ture.
>
the
level over
Certainly
at
a
visible
MEMEERS
fu¬
after
all
net
New
York Stock Exchange and
other
leading Security and Commodity Exchs.
charges and taxes should remain
the satisfactory 1941 level
120
is
boom
should
that
is
resent
in
many
the
time
railroad
Louisville &
free asset.
a
quarters
the stock may rep¬
over
1943 volume, Nashville has, with a single ex¬
will probably ception (1933), paid dividends
10%
lower, Mr. regularly since the beginning of
turnover
from
be
feeling
by the
a
the
equal
physical
sales
dollar
retail
total
While
Mo. P's
Broadway, New York 5, N. Y.
above
So. LaSalle St., Chicago 4,
231
Lack
until late in the year.
Seaboards
8
to
Babson stated.
•
the century.
In recent years the
000, and do not present any prob¬
lem. Also none of them are call¬
RAILWAY COMPANY
Underlying Mortgage
able.
Therefore, it is inevitable
that, the company will continue
to
focus
which
Last
attention
its
of
ment
retire¬
on
Leased Line Issues
longer term bonds
available at discounts.
the
year
largest
J.F. Reilly&Co.
Security Dealers Assn.
New York, N. Y»
1II Broadway,
HEctor 2-5288
Bell
System
Teletype.
the
advance
most
in
civilian
goods quotations is looked for in
reduction
Van Tuyl & Abbe
been far
Although the period of conver¬
sion us sure, to be one of uncer¬
ter
tainty
NY
1-2480
confusion, neverthe¬
Babson concluded, the
and
Coast. Line
more
whenever
available
Mont
RAILROAD
tive
SECURITIES
Laboratories
possibilities
offers
according
issued
memorandum
attrac¬
by
to
J.
a
F.
Reilly & Co., Ill Broadway, New
York
City.
Copies of this inter¬
esting memorandum may be had
ARBITRAGES
from the
TO COME
payments
earnings ; have
management
the
firm upon request.
be
a
maintained
in
but
been
has
MINNEAPOLIS &
Request
ST. LOUIS RAILWAY
return of about
10%
affording
at
recent
500,000
or
$5,000,000.
This
of
reduction
a
from
(27%)
would
about
the level
,
and
Members Hew Yor\
-r
120
;•
Stock
Stock Exchange
Frederic H. Hatch & Co.
Broadway, New York
Telephone REctor 2-7340
"
Incorporated
New York 5, N. Y.
63 Wall Street
Bell Teletype NY 1-897
5
j.Lr,:-;
Chic. & Eastern 111
Class A Stock
$1,800,000
supported
of
which
less than 15%
The
Line's
Coast
ing
its
about $17,only $2,470,200
was
paid out in
balance
went
equity
interest
in
subsidiary
around
stock.
that
rail
basic
this
and
further
this
equivalent
its
on
men
the
of
to
own
point out
improvement
in
potentialities
improvement
the rest of the
sav¬
requirements
is
$1.40 a share
Many
earnings,
for
in
during
Selling around $14 to yield
14% -—1943 earnings about
high earnings
pe¬
whole
together with particular
the specific
territory served, such as curtail¬
ment
of
activity
in
training
camps, will have an adverse in¬
fluence, on year-to-year earnings
comparisons in 1944. Neverthe¬
less; there is little question but
influencing
Analysis
CAP. 0425
Bond Club Of New York
William L. Batt,
address
Bond
Mr.
Attractive
A
Eastern
Illinois
situation
Situation
of
stock
a
an
of
Club
on
Board, will
luncheon meeting of the
New
York
to
be
February 23 at the Bank¬
Club, Richard de La Chapelle,,
Batt
club
announced.
discuss
"Peace and
of the
will
Foreign Trade."
Chicago
offers
at
Vice-Chairman
of the War Production
President
Class
Mass.
Teletype B9 259
W. L. Batt To Address
ers
,
: 2
N. Y. Telephone HAnover 2-7914
^
stock.
>
request
on
148 State St., Boston,
Tel.
little reflection in the price of the
■
dividend.
times
held
strengthening
finances
reducing debt, or towards
property improvements.
Factors
affecting the railroad industry as
factors
3
riod, have so far found relatively
towards
a
Sutro Br os. & Co.
YORK
represent
and
General Income 4s, 1996
WALL STREET
indicated level of be-'
an
low $5,500,000 and by the end of
this year they should be below
that net income
last year amounted to
dividends.
8S3S1;: "New"
1944,
price levels. The dividend is ob¬
viously not liberal in relation to
what the company is earning but
the use to which the company is
putting the balance of its income
has highly favorable long term
implications.
It is indicated
on
has
erratic in the mat¬
dividend
of
itself
ten years ago and a saving equiv¬
less, Mr.
followed a policy of passing along
jpear 1944, as measured by peace¬ at least a portion thereof to the alent to approximately $2.20 a
time standards, will be a year of stockholders.
Last year $3.00 a share on the Coast Line common.
business prosperity.
share was paid, out of the earn¬ At the same time, Louisville &
ings of about $21.00, compared Nashville has reduced its fixed
with $2.00 in 1942 and $1.00 in
Du Mont Lab. Attractive
charges the equivalent of about
1941. It is considered likely that
The
current
situation in
Du at least the last
year's rate will $2.00 a share on its common.
REORGANIZATION
Circulars
72
NEW
>
Atlantic
•
to
duced
1943.
the second half.
Members
York
New
of
■
and
the
are
Specializing in
^;
.
prices will move disbursement has been at the was in the Louisville & Nashville
generally upward during the year* rate of $7.00 a share and even Collateral 4s and the same is apt
to be true in 1944.
v
he predicted, though considerable with the
lapse in 1933 the divi¬
unsettlement is expected when the dend
Through this debt retirement,
;has averaged $4,86 a share ;
war in Europe ends.
Resumption in the eleven years 1933 through fixed charges have now been re¬
'
Hi.
SEABOARD AIR LINE
Commodity
AH Issues
Quoted
—
in
rationing, credit restrictions, and
other retail curbs are looked for
Colony's
Sold
Ernsts. Co;
and
years
is
of equipment and delays For each share of its own stock when $11,100,000 was earned. It
reorganizing production facile outstanding Coast Line owns a should be feasible to divert vir¬
ities and restoring the channels of little more than seven tenths of a tually all of net that is not paid
distribution will be the majority share of the subsidiary's stock. out in dividends to debt retire¬
of the year unemploy¬ difficulties, he continued.
The stock is pledged behind the ment.
Coast Line has five divisional
likely to reach 3,000,000. : On the home front, civilians Collateral 4s, 1952 but that is the
maturing
in
the
face the most severe shortages in issue on which Coast Line con¬ liens
period
the next six months, he said.: No centrated a large proportion of through 1948 but they are small
more
than a moderate easing of its 1943 debt retirement and there in size, aggregating only $5,400,We
—
stronger in the past few weeks,; apparently in somewhat belated
recognition of its double stake in the improvement taking place in
the railroad industry.
Not only is the company itself engaged in a
systematic debt retirement program but, also, the controlled Louis¬
shrink faster than civilian production can
Babson's
perpetual 4s,;
Railroad Securities
SlmuMxig In 1944
seriously hampered by lack of la¬
bor, scarcity of materials, or of
capital funds. He pointed out that
the manpower shortage will begin
to ease early in the spring, and by
New York 6
Railway
Paul Babson Sees Business
Predicts 3,000,000
Canadian Pacific
York Stock Exchange
^■6LBroadway;''':;;;;:::-H
York
New
Members New
.
...
—1
Broadway
(When Issued)
(
STOCKS-BONDS
RAILROAD
r——■——
:
•
'€a
?
ft
WAR
BONDS
■
Securities
New
ffWSt
<
In Mr.
Railway Co.
BUY
•
and
attrac¬
current
levels
according to an interesting
analy¬
tive
sis
prepared by Raymond & Co.,
Boston, Mass. Copies
of this
discussion may be ob¬
tained
upon request
from Ray¬
143 State St.,
mond
Carolina,
& Co.
Clinchfield
We maintain active
Our Recommendation until
Victory
y
,
& Ohio
SEABOARD 4s/50
V
Buy WAR BONDS
trading markets in:
SEABOARD 6s/45
SEABOARD 4s/59
SEABOARD-ALL FLORIDA 6s/35
Mclaughlin, baird & reuss
1. h. rothchild &
Members New York Stock Exchange
ONE
WALL
STREET
NEW
YORK 5
HANOVER
2-1355
TELETYPE NY
1-1310
COrtlandt 7-0136
n. y. c.
Adams & Peck
63 Wall
specialists in rails
120 hroadway
TEL.
co.
5
Tele. NY 1-1293
Street, New York 5
BOwling Green 9-8120
Boston
•
Philadelphia
Tele. NY 1-724
Hartford
Thursday, February 10, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
600
based
Senate And House
|
(Del.)
Northern States Power
The
—
Sold
—
Quoted
Paine, Webber, Jackson & Curtis
ESTABLISHED 1879
Feb.
on
and House
tion
Securities
-
from
\
Washington, Feb. 7, said;
issues to
"in bunches"
being nicely spaced
market
than
rather
apart, because of the natural
clination
to
take advantage
in¬
of
demand
favorable-/ institutional
This is now ac¬
centuated by the Federal war loan
drives (which will doubtless con¬
tinue two or three times a year),
during which there is little or no
effort
to
sell corporate
issues.
when it appears.
issues came
Last summer several
just before the drive, and others
after it was over.
This time the
big Florida Power & Light
came in January before the
and
of
number
a
have been deferred
smaller issues
until late Feb¬
with
March,
or
ruary
scheduled for the more
"
future.
issues
drive,
others
indefinite
"
The first offering
will probably
$4,300,000 Central Ohio
Light & Power 1st 3
'197.4, on
which bids are to be opened Feb¬
the
be
ruary
ern
The $5,000,000 North¬
(Minnesota) 1st
14th.
States Power
Mortgage Bonds 1974 are expected
around February 21st. The offer¬
ing
of Oklahoma 1st
not
Public Service
$6,6*00,000
of
been
yet.
314s due 1971 has
definitely scheduled as
/H:;:-;;/;;
Power
Florida
Corporation
on
January 27th registered $16,500,000
due 1974
1st Mortgage Bonds
and also plans to sell $4,000,000
314% Debentures privately. This
the re¬
habilitation program of the Asso¬
ciated Gas System "(the Florida
subsidiaries
of General Gas &
another
marks
step
been
Electric
have
are
carrying out
now
in
and
merged
a
refunding
somewhat similar to the
earlier merger-recapitaliaztion of
the South Carolina properties).
program,
The year 1944 appears likely
Senate-House
.
conference
/
"Representative- Crawford (R.¬
and Representative Voor-
Federal
taxes, and
ported at work on an important
refinancing program, to include
preferred stock, but the
offering date is not known.
Dillon, Read & Co. has done a
considerable
amount
of
spadework
for
on
a
large refunding issue
Michigan
which
last
Consolidated
Gas,
registered
November
$38,000,000 1st 3V2S 1968 and 40,000
shares
of
4%%
preferred
stock.
Just
as
the issue
wa"
being
however, the City Council
in Detroit imposed a very heavy
set up,
franchise tax
the
on
gross revenues—
outgrowth of an earlier unsuc¬
lars
ing of the financing,;
Another
piece
of
which has been held
financing
up is the
Laclede Gas bond refunding which
anticipated
was
The company has
last fall.
number
early
had
a
of difficulties with its recapitali¬
zation
approval
whle
Commission
Mssouri
the
of
and
plans
was
finally obtained, the SEC has kept
the
for
waiting
company
some
A hearing date was re¬
months.
Copies
General'
Empire
Instrument; ■ Hartford
Co.;- Long Bell Lumber
,'/v:
National
/
Gypsum, bought
at 9 Vi] has suddenly changed
its'; complexion.
Dont' wait
for a stop figure to. be broken.
(D.-Cal.) questioned whether, Co.p- Southwest- - Lumber / Mills.;
measure
would
deal
ade¬ Great American Industries; KelGet
quately with war-time financing lett' Aircraft;, MidrContinent Air¬
the
Representative Tzac
of
out
it
Curtiss
now;
.(R.¬
Kinutsoji
"Representative
Minn.) said the tax laws must be
simplified-beforeanyf more^ev^
enue measures are passed,. - ,.
"
he.; said, ^should
'Congress*'
enable
citizens to understand
our
lines ;
M;Rauch^s$0ciated;
With Paine Webber Co.
RAPIDS;"; MICH.
GRAND 5
p
—
Montgomery K; Rauch, • formerly
with E. H. Rollins & Sons Incor¬
for
bidding—doubt¬
of
the high
debt
competitive
because
less
ratio to plant
valuation. However,
the Commission granted permis¬
sion to the company to sell its
bonds privately, and negotiations
with a group of insurance compa¬
nies
reported to be progress¬
are
ing favorably.
Other
bond
issues
which
are
five southern subsidiaries of Elec¬
tric Power &
Light, including the
big United Gas refunding, held up
several years by difficulties
for
with
the
Power
Cities
SEC.
Service
&
Light has some plans
under way to conform to the SEC
dissolution
involve
and
order
these
may
refunding
press
weeks
next few
months—Central Illinois
likely
appear
or
in
the
Electric & Gas, Carolina Power
&
Light and Birmingham Electricwhile others may follow later in
the year if market conditions re¬
main
favorable.
These
such nonrecurring receipts
count
:■ The
will
be
met
out
in¬
current
of
'
come."
Summarizing
additional
taxes
imposed under, the bill the advices
Tomorrow's Markets
Walter
Individualincome and Victory
$664,900,000..
tax payers,
Postal
United Air Lines is begin¬
ning >to show signs of coming
back to life. : A close
buy at
price of 22 with a stop at 21
*
sent back
000.
that Congress
took its final action on the bill by
It was also noted
adopting, first in the House, then
the Senate, a joint conference
in
recommendations on
committee's
perfected form of the meas¬
the
ure.
•
~
.
action
feree's
issue of
the con¬
appeared in our
item
earlier
An
on
.
Feb. 3, page 523.
than, a
•
was
Company represent
attractive opportunity for price
an
and
Gas
to ; a de¬
study of the situation issued
according
appreciation
tailed
by New York
tion,
120
Hanseatic Corpora¬
Broadway,
New
York
Puget Sound Power
Common
COrtlandt
to
N.
speech
a
Exports—Imports—Futures
billion he would have
something like $16
billion.
With
the / leading
$10
DIgby 4-2727
Republican candidate (so. far)
on record on tax demands it
would
seem
an
easy
out for
thing
:
v:
Established
18S0
;j:>■
FDR to veto the whole
throw
Con¬
in
it - back
gressional laps.
I believe
such a thing is now highly
probable. I also believe part
H. Hentz & Co.
."./i..
"
:i:
York
Stock
York
Curb
New
-v.-
Commodity
New
:js
result
week's
the
Orleans
written
sit
still
teriorate
desire
and watch
it de¬
any
have
Exchange,
Board
of
Cotton
other
Inc.
Trade
Exchange
Exchanges
since last
was
no
one
Exchange
Exchange
the
market has deteriorated.
And I for
to
is that
column
is
it
Exchange '
York'-•'Cotton'
Chicago
possibility.
whatever
Member$
New
New
."
And
Y. C.
7-1202
SUGAR
asked for
if
PH 30
/
asking for
said that instead of
Stock
St., Philadelphia 3
STREET
NEW YORK 5, N. Y.
however,
,
Wendell Willkie in
end
Phone
week,
Last
to this
BOENNING & CO.
Private
WALL
99
would
of the decline is attributable
Pennypacker 8200
LAMBORN & CO.
reasonable to sup¬
that the President
none.
expressed in this
necessarily at any
with
Con¬
accept its figure on the theory
that half a loaf is better than
But
1606 Walnut
views
do not
coincide
Chronicle.
voted was too small. He
wanted $10 billion/ But with
Congress being in the mood it
Securities of Consolidated Elec¬
tric
rThe
gress
it
;
the President
We all know
is
*
those of the
They are presented as
those of the author only.]
.
*
*
*
:
article
time
thought the $2 billion
pose
Interesting - Situation
upward revision
become more
possibility.
'
•
-
for
suddenly
has*
*
More next Thursday.
*
-^Walter Whyte
The. possibility of the bill not
$1,051,- becoming a .law and being
increases) $96,900,-
rate
34,
But now, it's
.
Corporations,1 $50?,100,000.
Higher excise tax rates,
300,000. '
at
didn't 4 get
buy fig^
ure sets
up differently.
So
cancel. last week's 34 price
and buy Case at 32 with a
stop at 31.
there.
597)
(Continued • from page
Bought—Sold—Quoted
CHICAGO
your
recommends itself.
Savs——fssK"-:
.
& Light
Co.
Whyte
cited:
Common Stock
&
So, :repeat
-
.
Society of Se¬ tainable
New York
of
payments
as
offerings
Members New York Stock Exchange
in
,
City.
Copies of this interesting
"new money" fi-'
study may be had upon request
nancing, but are merely sales by
holding companies to conform to from New York Hanseatic; Cor¬
the Utility Act.
poration.
V;
Bear, Stearns
one
.
do not represent
(When Issued)
the market.
T
reports.
Several Common stock offei'ings
Kroger is the only
the list which acts better than
.
may
during the summer or fall
the refunding operations by
appear
get out of this, too.
the ;fax; burden^ im¬ porated, -has become associated buy order vin Kroger at 32)
with Paine, - Webber, Jackson &
but don't carry it under 31*
posed on them.'
; ;
r
Curtis,
Peoples -; National" Bank1
*
Sjs
L ?,
.1
"Piled on top of existing rev¬
Building,
asassistant manager
enue
laws, the new bill- will in¬
and trader.
4
■; r
• '*. ■ ■j-;
Case ;) Threshing,
recom¬
crease
the Government's annual
mended here last week as an
income to- an estimated $42,239,-'
;N, y," Analysts,To)Heats out and out speculation if ob¬
200,000, without taking} into -ac¬
.
refunding issue, which appar¬
ently failed to meet SEC standards
to
and compute;
the. unforgiven curity Analysts-, Inc. will . hear
portions of -1942.income taxes. ... Ralph Sterling of Merrill Lynch,
"With
the
Government plan¬ Pierce, Fenner & Beane discuss
get a place on the active list.
of 1 the Hope
to-. spend /approximately the -implications
Illinois Power Company (for¬ ning
Natural Gas decision at the meet-:
merly Illinois Iowa Power Com¬ $100,000,000,000 in the year ahead
pany) has also been having some —provided the war continues— ing to be held on Friday, Febru¬
that somewhat Mess ary 11th. • This will be, as. usual,
difficulties with its big $65,000,- this means
less than half the expenditures at 56 Broad Street, at 12:30 p. m.
000
cently fixed, however, which in¬
dicates that the issue may again
United Light & Railways Co.
offer- attractive
bilities, the firm believes.
of these circulars, on the
and
NEW'YORK
situations which
several
on
currently
his
the issue has
appealed to the Courts, this
development resulted in postpon¬
been
ing to
re¬
Armstrong
Cork, bought
38, and now frac¬
last week at
Richards, / Haskelite; Doyle Wright .-'"A,": held here for
(D.-Cal.) said provisions of the Machine Tool; Metal & Thermit; some; time, ; is istill ; about
cessful attempt to impose a heavy bill altering the war contract; re¬ iAs* E./ Staley; Central Electric- &
where;; you bought it—16I/2«
rate cut
(denied by the State negotiation statutes would permit Tel.; Massachusetts Power & Light
Not being able to show any¬
Commission). While a substantial some contractors
to
make
ex¬ $2- preferred; • ■"
--v '
p
part of the tax is absorbed by cessive profits.
thing,;! thm^
is about time
exact
is
Mich.)
necessities.
/
.
bonds and
Gas
25, should not be car¬
„
operations, it
is
thought.
Commonwealth
&
Southern is studying a refunding
program for Ohio Edison, accord¬
Natural
Oklahoma
Steel Foundries,
American
tionally
under
that price,
possi¬ should be stopped at 37. If,
before it breaks that level, it
of the measure, slid through, the
follow¬
rallies to between 39 and 40,1
Senate quietly, on a unanimous ing issues, may! be had from Ward
voice
- - "
advise getting out. '
vote, " but -it encountered & Co. upon request:
r
the
■
stumbling block.
Attractive Situations
Ward & Co.; 120 Broadway, New
York City, have prepared circu¬
opposition, before it : r Du :• Mont Laboratories "A;" .'
was approved by the House, on .a
Merchants } Distilling;
Crowellroll call vote of 238 to 101.
A
Collier Publishing; P. R.- Mallory;
Utility financing in 1943 dropped below the 1942 level, and was
principally for refunding purposes.
The industry has now largely
completed its wartime program for expansion of plant, which was
financed very largely out of earnings and cash made available by
reach
■
considerable
Ahead
Important Utility Financing
tendency for refunding
■/<'
held at
j
report, embodying the final draft
depreciation and amortization charges.
to follow a similar pattern.
.'
There has always been
some^
of legislative drafting
adopting it on^
accounts
Press
Associated
"A
M
lows:
for final
1
day;-regarding the :disposi¬
of
the
bill
by, Congress,
that
Public Utility
days' market
advice is as;-fol¬
my
touching up before submission to the
If it rallies,
House and Senate for ratification; a final check by the Congressional ried under 24.
tax experts was made on Feb. 5, and action by Congress on the the
27-28 range will be a
conference report, as filed last week, was taken on Feb. 7, both che
experts
Senate
'
the six
on
action,
conferees reached
$2,315,800,000 tax bill, on which the
new
agreement on Jan. 31, was put into the hands
6% & 7% Preferreds
Bought
Adept Tax Bill As Finally
Perfected In Conference
/
further.
So,
N.
Y. Cotton
NEW
CHICAGO
Exchange Bldg.
YORK
DETROIT
GENEVA,
4, N. Y.
-
PITTSBURGH
SWITZERLAND
Volume 159L Number
THE COMMERCIAL & FINANCIAL CHRONICLE
4254-
"Our Reporter On
Governments'! J
Heading into the home stretch of the Fourth War Loan Cam¬
paign, the total subscription figures are indeed impressive, but the
total of subscriptions received so far from individuals is not satis¬
factory.
'. Granting that there is a time lag between the taking
of subscriptions and the
reporting thereof, good deal of conscientious
plugging on the part of the vast army of solicitors will be necessary
'to attain the $5,500,000,000 goal.
;,:0'i
Here in Manhattan many prospects have been canvassed • hot
only once but many times; so if the door-bell pushers in the country
at large put the same enthusiasm1 into their solicitations as has ■been
.
.
,
'
,
"demonstrated here, attainment of the quota for
individuals* can-be
achieved.
)
>
.
\
"
;
of
Approximately 35,000 subscriptions to date reported by one
the leading Bank Teams in .'Manhattan, compared
received in the corresponding period during the
ADVERTISEMENT
Post-War Period Will
Bring Lower Prices
find Better Goods* Says RetailI Group Head
address,
an
and
Business
more goods at
in the post-war period, said the
Youngstown advices, which also
quoted as follows from Dr. Craig's address:
*
;r"Vast increases in the techniques of mass production can be methods which we use right now
expected
to
lower
production will be extremely valuable to us
costs," Dr. Craig said. "New ma¬ then.
(1
terials will be worked into con¬
sumer goods and better
qualities
"After
the
,
.
out
that
the
establish
on
.
The various low premium
.
concluding phases of the
REQUIREMENTS
EARLY. REFUNDING
15th.
and June
now
of these operations, exclusive of the
of bill maturities, is indicated by the following
The
over
,
scope
weekly rolling
schedule:
Amount
filled
our
erally
on
on
we
are
Germany quits we
expect drastic changes in the
gram
of
production.'
war
own
take
new
basis.
A second post¬
period will arrive when po¬
would add
Tax Status
duction,
he
all
should take
ger
at
that
civilian
95
; .;
571
He
our
gen¬
You would
out
and
and
though
this
large
synthetics already had
the rubber manufac¬
draw
civilian
half of the year to
1.519
exempt-— U. S. Treasury 314 %, April 15, 1944 .
_U. S. Treasury %.%, May 1, 1944
exempt... .Home Owners Loan 3%, May 1, 1944-52
exempt.— .Federal Farm Mortgages 3'Id, May 15,: 1944-49
Partially
1,655
Taxable
per
416
-XJ.
Entire'.y exempt
,
The
S.
Treasury
Public
June 15, 1944
million of this amount is composed of
free and partially tax-free issues.
maturing or call¬
*
able totally tax
as
is known no
decisions as to terms of
.
conversion for
of the securities making up this $4,159 million total have been
formulated, and probably will not be decided upon until after the
conclusion of the present drive; but, regardless of the final con¬
version offers, it seems quite logical to expect that a substantial
number of the present holders of these issues will prefer to do
their own refunding rather than to except in exchange low coupon
any
tsxclbl6 securities
be
'
r
1 >ti
■*
- •
million of these issues, about
of 3% and $1,614 million have a
billion six hundred fourteen
One
to
refunded
to be exact—
gradual, conversion of the tax exempt portion of the debt
been proceeding ever since the provisions of the
carry
a
course,
Debt
Act of 1941 prohibited the- further issuance of taxsecurities after March 1st of that year, but up until the
present time it had been a very gradual procedure because the
maturing or callable issues were of relatively small proportions.
In
exempt
$6,906 million of the above total are comprised of the April and
May certificates maturities which will ho doubt be offered other
short-term obligations in exchange. . . . Of the remaining portion
to be refunded, however, it seems to be of the greatest importance
far
or
CONVERSION ACCELERATED
has, of
$11,636
that $4,159
whole
a
.
Partially
835
as
coupon
31/4% coupon, making a total of some $3,228 million
bonds about to be eliminated.
The over-all implications of extinguishing of
of high coupon
fact, during the three years that this operation has been in progress,
refundings or retirements of some 25 different maturities (exclusive
of Treasury bills) were
necessary in order to effect conversions of
approximately 10 billions of the direct and guaranteed debt into
obligations.
—;
That the potentialities
arising from the approaching extinction
of six totally exempt or partially tax-exempt issues
amounting to
river 4 billions of dollars, between now and next June, may be of
farrreaching importance to the future trend of the Government Bond
taxable
Market.
As stated before a considerable number of holders,
accepting the inevitable low coupon taxable issue or
issues to be offered will prefer , to sell out their maturing bonds and
notes; and purchase othef .outstanding higher yielding tax-free
issues.; :
Some will undoubtedly try to reinvest in State or
Municipal Bonds, if available, but for the execution of the major
rather-
.
.
.
than
.
portion of
.
such "self refunding" programs recourse will of neces¬
sity have to be made to the partially tax-exempt securities that may
any
be available in the
open market.
such a sizable
It is entirely probable thai this procedure may be under¬
amount of partially tax-exempt bonds, which must be completed
taken by some of the commercial banks.
These institutions
before May 15th, become all the more apparent when one considers
which for years had been confronted with dilemma of rising
that at the present time there are currently outstanding a total,of
costs of operation and diminishing returns from investments and
approximately $27,210 million of such securities*. ..... . After the
loans, are benefiting from the "full investment policy" suggested,
impending' refunding program has been completed, the potentially
approved and advocated by the Federal Reserve Banks, and now
available marketable securities in this category will have been :
find
themselves
with
earnings which
are
no
longer
taxreduced by almost 12% and will aggregate, three months from now,
exempt.
In so much as these institutions, in the final
less than 24 billions.
* ' '
^quarter of last year, held about 28% of each issue of the matur¬
The situation presented by the totally tax-free notes is all the
ing notes, and in excess of 48% of the bonds about to be re¬
more striking.
As has been pointed out in the above schedule
funded, the question of how much of this total will seek refuge
two issues of notes are to be taken care of by June the 15th. .
in partially tax-exempt bonds of longer term offers interesting
The combined amount of these issues comes to some $931 million
possibilities.
which at the present time comprises about 48% of the "exempt"
notes outstanding.
With their elimination there will be remain¬
Individuals, partnerships, trust funds, corporations, etc., which
ing only two more maturities of this type—$283 million which will come under the general heading of "all others" in the Treasury
come due in September of this year, and an issue of $718
million Bulletin, listing the classes of owners of Government obligations,
to be disposed of by March, 1945.
.
.
.
With this event the totally are shown to have held as of October 31st last, almost 55%. of the
tax-free note, which for so many years has been the refuge of wealth, total of the maturing notes and about 29% of the maturing bonds.
These are the types of investors that have long been tax con¬
whether individual or corporate, will have passed from the scene.
scious.
If they too wish to convert their present holdings into
It should be realized then that upon the completion of the >
refunding involving the $3,228 million of partially tax-exempt • longer exempt securities, the combined funds of "all others" plus
those of the commercial banks should serve to create a demand of
bonds plus the refunding of $931 million of totally tax-free notes,
impressive proportions for the dwindling supply of available exempt
the aggregate amount of such securities outstanding as of June
securities.
'
15th will have been reduced to less than $25 billions. .
So far we have discussed only the demand that is possible from
Even in these days of $14 billion War Loans and $100 billion
the "self refunding" operations.
Couple this demand with the
budgets, $25 billion is still an impressive amount, but upon the
investable funds now being created as a by-product of the Fourth
completion of the present Bond Drive, the national debt will
War Loan and the result may well lead to a situation whereby last
then be somewhere in the neighborhood of 185 billions of dol¬
year's peak prices of partially tax-exempt Government securities
lars.
It seems quite significant, therefore, that the 25
■■■'. i;
billions of securities under discussion will then constitute but y may even be surpassed.
.
.
.
.
.
.
.
.
.
.
over
a
period of
impart to whiskey its wellknown taste, so that you can recog¬
nize it just as you can recognize
coffee by its flavor. Simple—isn't it?
years,
-
DEBT
______
Partially
779
So
relatively small portitin of the debt
only 13 Vz%l
from
"extractives"
certain
from the wood
month.
a
whis¬
tillation processes. These, in addi¬
tion to the flavor elements drawn
truck
75,000 tons
raw
oped certain flavor elements as a
increase that will gradually bring
the -production
for
the- second
There
take the
result of the fermentation and dis¬
-requirements will, for
many months, eat up the monthly
pro¬
now
the wood. The whiskey has devel¬
bus
essential
a
key and store it for aging, in new,
charred oak casks, where it will
even v
tary
may
would then heat to
point
thereby
separating the alcohol and other
desirable ingredients from the
spent grain. This vapor would then
pass, on through coils which coolsit arid makes it a liquid. And, now,
you would have young wrhiskey.
you
drivers
pointed
At this stage you would have what
where it becomes vapor,
;
—
distiller's yeast to
is termed ^distiller's beer" which
permitted
turing industry to step up to onehalf again its 1943 rate, the mili¬
be increases in some direc¬
tions and cut-backs in others. The
.
5,251
some
would pass out into the air,
the alcohol would remain. -
of their passen¬
care
tires.
car
amount of
will
Issue '
f
Entirely exempt—. ,U. S. Treasury 1 %, March 15, 1944
Wi March 15, 1944-49
Partially exempt-.. Federal Farm Mortgages 3
.U. S. Treasury 7%, April 1, 1944
Taxable
Taxable
:: .Reconstruction Finance 1%, April 15, 1944
$515
Next, you would
(grain that has
transform the, fermentable sugars
into alcohol and carbon dioxide,
Outstanding
(Millions)?
malt
some
been germinated by moisture and
heat), because the malt will con¬
vert the grain starches in your
mash into fermentable sugars. You
governments
50,000 tons.
He cautioned, how¬
ever, that despite this large pro¬
replacement basis.
a
"After
water and cook it.
Rubber Director Bradley Dew¬
ey on Feb. 5 announced that the
production of synthetic rubbers
during January
totaled almost
war
From here
their
mixture of all of them. You
a
would grind the grain to a meal;
then you would mix the meal with
S
the
armies and navies-and to
allies.
or
re¬
We will
January Output Of
Synthetic Rubber High
are
meeting
the
production. We have
the pipelines of supply to
needs of
contracts.
period.
the
principally. The carbon dioxide
and
We
present.
Secretary Morgenthau has mentioned the month of May or June
for the beginning of the next War Loan Campaign. . \
It may
seem a bit previous to be talking about the Fifth War.Loan before
-we have* even completed the present drive, but it is not too soon to
take into consideration the really prodigious amount of refunding;
"which must be accomplished by the Treasury Department between
of
licing- and economic support may
be withdrawn from foreign coun¬
tries."
'
-
ex¬
war
a
war
war
"We have finished with the
taxable 2% issues found
ready buyers and the aforementioned partially tax exempt, bonds pansion
of plant
capacity,"
stabilized and then made abrupt recoveries of from
to %s points. said, "and we are in one of
.
war
most
our troops which
actually needed for po¬
licing the reoccupied and con¬
quered countries until they can
The effect of this easing in the money picture was observed; will end for retailers only when
almost immediately and, for once, bore out the prognostications,. oL there is an ample supply of goods
the financial economists and of the trading fraternity.
consumers,
and
outlined
Large blocks for
three phases of the war period.
of
bills
were
repurchased, certificates and other short terms
firmed.
post-war
not
are
"
pointed
true
cancel
to make whiskey,
were
would need a few simple in¬
gredients. You would need grain;
corn, or rye, or barley, or wheat,
demobilize all of
,
He
shall
maining
.
starved central reserve areas.
money
If j'ou
you
Japan is beaten will be
first
We
with about 29,000 developed. In the
long run prices
Third War Loan. can be expected to come down
Of the
initial period
Simple—Isn't It?
,
arid an acceleration of it may be
campaign liquidation of
some
.expected after the war.
outstanding "partially tax-exempt" Treasury obligations
by insurance companies served to unsettle that portion of the
"The post-war period, with its
list with declines amounting to about a quarter point in some
promise of plenty and rewards
instances.
when they are earned, is a
However, shortly after the first of February,
period
as had been generally anticipated, the rapid building up of, the.
j to which the American retailer
War Loan deposit.accounts, with the accompanying decrease in
looks forward eagerly," Dr. Craig
asserted.
required reserves, was instrumental in bringing relief to the ■
the
SCHENLEY DISTILLERS CORP., NEW YORK
Foundation, predicted production of
,
During
Americans,
This is number eighteen of a series.
lower- prices and better qualities
New York "Times" of Feb. 1 in
for personal solicitation of
.
will be of interest to our fellow
Jan. 31, at Youngstown, Ohio, before the Economic
on
Too much credit cannot be
.
NOTE—From time to time, in this space,
there will appear an article which we hope
)'■- David R. Craig, President of the American Retail Federation, in
of the Treasury's desire and qualities can be
expected to
subscriptions during this campaign;V • / ^ rise.;"
given to the Commercial Banks which
Further integration of distribu¬
are heading up
the various dealer teams.
The full time and tion can be looked for, he de¬
effort of many employees of these institutions since early November
clared,' adding that large and
of last year has gone into laying the ground work of the 'present, small retailers
will get closer to
drive, and the painstaking detail; work of processing the thousands their sources of supply. This trend
of subscriptions during the campaign has been enormous.
was noted in the
pre-war period
.Drive amply demonstrates the effectiveness
601
And now we want to tell you
something very important. While
anybody can make whiskey, as
such, there is a vast difference in
the quality of distilled alcoholic
beverages. For instance, there is
the quality of the grain selected.
A
man
of science examines it
care¬
fully; he tests it for bacteria count,
for protein, starch and moisture
content. He examines it carefully
to see that the flinty protective i;
outer skin of the corn is not
broken,
because, when the skin is broken,
can set in. He smells it
infection
for mustiness,
because musty grain
that
will never get rid of, even if
you aged the whiskey for twenty
years.
' ■
\
r
will do something to whiskey
you
The
water is
subjected to care¬
culture of yeast,
kept in a safe, is
ful tests. A pure
which is literally
used for fermentation.
the line there
are
All down
scientific control
steps, from the time the grain en¬
a
distillery until the young
whiskey goes to its repose in the
ters
charred barrels.
But,
one
we
cannot tell all of it in
short article. We will tell you,
later. So, please don't go
more
away;
and keep
on
reading these
little sketches.
MARK MERIT
of SCHENLEY DISTILLERS CORP.
FREE-A booklet containing reprints
of earlier articles in this series will be
sent you on request. Send a post-card to
me care of Schenley
Distillers Corp.,
350 Fifth Avenue, New York 1, N. Y,
.
.
.
.
.
.
.
.
-
.
.
MERIT
MARK
.
.
.
.
.
of Schenley Distillers
Corp.
So. Pacific Attractive
.
The current situation in
ern
Pacific
serving
a
South¬
Company, which is
rapidly, growing ter¬
offers attractive possibili¬
ties, according to a detailed dis¬
cussion
prepared
by
Vilas
&
Hickey, 49 Wall Street, New York
City, members of the New York
Stock and Curb Exchanges. Copies
of this interesting discussion may
ritory,
be
had
quest.
from
the
firm
upon
re¬
Thursday, February 10, 1944
& FINANCIAL CHRONICLE
THE COMMERCIAL
602
Loron Cochran With
Market in
Active
Analyses
Recent
flmpcp Metal, Inc.
Fuller
Merchants Distilling Corp.
Analysis
Manufacturing Company
Stock
Common
_;.
Request
on
COMMON
.
with
request
on
William A.FulIer&Co.
Members of Chicago
St.
So. La Salle
CHICAGO 4
209 S. La Salle
THOMSON & McKINNON
•
Members
CHICAGO
Tele. CG 146
Andover
1520
New
1399
CG
ran
principal"exchanges
*
;
Stocks
Salle Street
CHICAGO 3
Dearborn
9600
CG 1200
;
;
on
conservative basis if finan¬
a
231
Co.,
&
Adams
by the investment
to be expected.
Now, Cyrus Eaton of Otis &
Co. has announced that he has
also formed a syndicate of more
than 100 houses to consider the
fraternity
I111I& cotiife
Members of
/
t
Exchange
Board of Trade
Chicago Stock
Chicago
New York
Curb Exchange
So. La
231
(Associate)
Salle Street
Chicago 4
Central. 5715
Tel.
.
Tele. CG 1660
and
would
succeeds
Kebbon,
-on
Available
of
Request
ceive
Interstate Aircraft and
Engineering Corporation
i
■
however, would re¬
$27,500,000 cash fund that
city,
a
surface
the
lines.
surface
the
The
have
maintenance,
renewals i and
so,
now
according to some calculations,
the city would actually be pay¬
BOUGHT—SOLD—QUOTED
ing $59,500,000 for the lines—in¬
stead
of the
$94,000,000 talked
about.
FREDW. FAIRMAN & CO.
208
SOUTH
LA SALLE STREET
CHICAGO 4,
ILLINOIS
Stock
Chicago
Tel. RANdolph 4068
#
in
Feeley
redeemed
at
be
lines
In most re¬
type, it
considered almost a
95, instead of par.
has
been
that
rule
On
Request
V
holders
be
immediate
Gear & Machine Corp'n
On
the
holders
have
Active
Markets
in
all
ment
Chicago Traction Securities
a
$14,000,000
of the invest¬
some
houses
;
plan
security
junior
divide
pot, which
the
hand,
that
thought
too
was
In
Straus Securities Company
135 South La Salle St., Chicago 3, III.
Tel. ANDover 5700
Tele. CGO 650-651
'
reaction
the
to
proposal,
jumped
sharply, two or three points the
first day.
This climaxed a steady
upward climb for these securities
in recent weeks, as talk of the
securities
(Continued
the
quest, alate analysis of General
The
&
Milton
&
S.
vs
on
first
page
Traders
on
committees will be ap¬
new
Simmons, Lee Higginson Cor¬
president;
James
H.
poration,
4'
d!
s
»
.
& Co., 1 secretary
Schoettler, Wayne
Hummer & Co., treasurer.
A large attendance of members
Blair,
'
t
Bonner
Girard
and
F.
and
to
out-of-town guests was pres¬
ent.
Emrich, Harris Hall'
All members
cooperating, in
are
Loan Drive and for the final week
ation; D. Dean McCormick; Paul
bureau.
their
&
will
L.
Mullaney, Mullaney, Ross &
Company; and Alfred S.. Wiltberger, Blyth & Co., Inc.
i
The Club's dinner
Harry
L.
the
to
Richard
two
were
N.
very
short
entertainment.
'
talks
and
!...
'
F. W. fa lay
,...
he
Majestic Radio
Markets in all
Eugene P. Hoya
Henry Jensen
P.
Fred
Johnson
.
J.
Paul
Ccoley
E.
M.
Arthur
Cconey
Wm,
Richard
T.
A.
Joseph
Goodman
Grigsby
P. Hammel
Charles
39
service,
to be engaged in customer
it is announced by
Ohnemus
D.
J.
Wallace
Walsh
Raymond C. Wauchop
Chapin Wright
Burnham Yates- •' '
Hofer
:
v
ley
during
La
Salle
his twenty
Street
formerly
American
and
i Northern
Company.
.
.
-
-
'
to The Financial
Chronicle).;!/
CHICAGO, ILL.—Louis B. Fer¬
guson has become associated with
Peter
J.
Samuel
Conlan
Savings
Bank
/./(Special
;
years ;on
was
Association,
Loan
National
•
Mr. Rem¬
with the Chicago Federal
&
With Eastman Dillon & Co.
C. Ray Phillips
on
Hotel,
following of¬
the
elected
Eastman, Dillon & Co., 135 South
La
Salle Street./ Mr.
Fergusor
was formerly with Nichols, Terrj
and Dickinson, Inc.
In the pasl
Sachnoff
ficers for 1944-5.
President:
Harry
r
he
Nelson,
L.
was
a
principal in the invest¬
ment firm of L. B. Ferguson & Co
Blyth & Co., Inc.
9% ON YOUR MONEY
No Preferred
g
Net
Earnings
/
1941
31c
22c
Phone
3
965
State
•
CHICAGO 3
• •-•
.
":-v
•:
15c
can
have
a
CASWELL
\V-;
•
":/>■
15c
;
,
'■We, expect 1943 earnings to compare favorably with
The' annual report will be out about February 15th.
1942.
circular
& CO.
120 South La Salle Street
Teletype CG 993
6001
Dividends
/y.
7c
7 /•/.;•-•
10c
.">*'v12c
: V.
?*
Co., Inc.
Salle St.
No Funded Debt
/
Share
Per
20c
1943
.
18c
1940
A HIGHER OFFER?
Capital Stock
A
After Taxes
,1939
request
Chicago Traction issues
So. La
;
with the La Salle National Bank,
LEASON &
West Monroe Street
.
Sacco
Forrest
H.
.
George R. Torrey
George Wahlquist
Pyfe
P.
H.
Richard
CHICAGO, ILL. — F. Wyman
has
become, associated
•
Beall
S.
M.
Remley
'
N. Faust
Smith Ferebee
J.
J.
You
Enyart, Van Camp & Co., Inc.
'
Traders
Bond
in the armed forces
Aldworth
Bullish
J.
Walter
.
La Salle Hail Bank
:
War
telephone : service
of
Baum
Bax
Richard
Joins
Fourth
Clyde H. Keith
(deceased) Hugh Kearne
Carl X. Blombn-g
Newell S. Knight,,
George Fabian Brewer William Lawlor, Jr.
Prank Buller
W. W. Leahy
James J. Callan
Ed. Liening
James E. Czainecki
Donald E, Muller
K.
■
* -'
*
B.
Paul
I"
<
'
G.
Joseph
In addition
business,
there
regular
a
are:
informal,
was
man
,
the
on
Club serving
Star C. Koerner
Nelson
guests attending.
no
work
Members
1942
in¬
be
1st, (at ^ which
Murphy, Cruttenden & Co., vicepresident;
Loren
A.
Cochran,
'
prepared a new study relating to City's offer of
for the Chicago Surface and Elevated Lines
Furnished
CG
of
f
t
will
officers
April
on
Bank
.
Hardin H. Hawes; Harris'
Savings Bank; Eugene;
Iiotchkiss, Lee Higginson Corpor¬
WILL EARNINGS SUPPORT
P. H. Butler Co.
2424
,
-■»
.
Sachnoff,
-
National;
M
new
ducted
W.
$94,000,000
Consumers Co. Pfd.
ANDover
The
•
I
;
Conlan,
pointed and plans made-for ,1944.
Retiring officers are: Richard
di¬
*'*
,
Koerher,
Peter
J.
Weeks;'-
First
Chicago.
time
ABOUT
We have
a
engineering organization,
which is aggressively
(Continued on page 603)
CHICAGO TRACTIONS
First National Bank
CHICAGO
Aircraft
Corporation,
at war,
The
banquet and presentation
February 8th at the La Salle
Trading Interest in"':'".
Contl. 111. Nat. Bank
100
Interstate
Treasurer: / Samuel
ILL, — The Bond
Club of Chicago at their
CHICAGO,
Co.;
Trust
Trust
603)
an
on
Secretary:
Horpblower
,
addition
the officers, ,were selected;'as
rectors of the Club:
208
Mitchell, Hutchins & Co.
Elect 1944 Officers
Co.:
n a m e
''.
.
following," in
Co.,
have
Vice-President: Star C.
Chicago Bond Traders
W i l l La m'A.
"
&
Street,
Engineering
now
Chi¬
of
■
-
Fairman
Salle
pre-war
William;
w a s
'
treasurer.'
W.
La
brochure
Secretary;!
president of the bank.-
generous.
traction
of
Spaulding /Fuller
135
thirty-page descriptive
and
will send upon re¬
Street,
Co.,
&
Salle Street,
attractive
)A, ."(.Fuller; of!
comment.
adverse
other
suggested
Common Stock
their
the suggestion
paid
brought
for
par
and
less
mortgage
first
the
Fred
P.; annual
and
F.
'
,
South
this
of
receive
securities,
that
Foote Bros.
We
advise
to
intention
quest.
Box Co.
Mc¬
v
sen.
George
Chicago
have pre¬
pared a recent analysis of Robbins & Myers, Inc., preferred and
common
stock.
Copies of this
analysis may be had upon re¬
cago'was cho¬
'
of
Club
O'Connor
Doyle,
South La
National
Bank
the
the
surface
Bell Sys. Tele. CG 537
Circular
of dis¬
was
that first mortgage bonds of
organizations
Recent
cause
proposal
the
indicated
Exchange
Chicago Board of Trade
Members
immediate
One
pute
D.
-
James
First
for
lines
.
Cormick & Co.
re¬
$94,000,000 cash.
The city
would
pay
$86,000,000 of this
amount, with the balance to come
from money already in possession
r
McCormick of
■
lines
surface
and
M
Spaulding
•<,,
secretary of the
as
Traders
the
l.
e
&
La
South
kstone
a c
Ho t
•
ceive
Descriptive Brochure
at
B 1
Mayor Kelly's offer, via his
negotiating subcommittee of the
city council, led to several con¬
clusions, depending on how one
considered it.
First, it indicated
that the security holders of the
El
meeting
held
opinion, the city is offering at
least $20,000,000 too much for the
transit lines.
dinner
nual
was
issue, if and when it comes.
And
Mr. Eaton declared that, in his
two
Salle
the Club's an¬
v
support
cial
JOHN J. O'BRIEN
'V
Forgan
Chicago Recommendations
Chicago
Elects Spaulding Head
Incorporated
135 S. La
Glore,
For
Coch¬
Toronto
Blub
Doyle, O'Connor & Co.
served
He
under municipal
Myers, Inc.
department.
with
was
Bond
Salle Street, have prepared a re¬
ownership.
cent analysis of National Term¬
If the plan is ever carried out, and the city bus lines are also inal Corporation, copies of which
purchased, the city would float a revenue bond issue to pay the cost4 are available on request.
uast
November,
a
nation-wide«>
Brailsford & Co., 208 South La
syndicate of over
100 houses,
Bond
Of
headed by Harris, Hall & Com¬
Salle Street, now have complete
1943
pany, The First Boston Corpora¬
figures
on
earnings
of
tion, and Blyth & Co., Inc., was
Chicago, North Shore & Milwau¬
formed to consider the proposed
CHICAGO,. ILL. — George F. kee Railroad, copies of Which will
municipal revenue issue.
At the Spaulding of the Northern Trust be sent upon request.
time,
they indicated that the Company was elected President
undertaking must be established of the Bond Club of
Caswell & Co., 120 South La
Chicago at
J. Kelly
Preferred & Common
135
Co.
r
Indianapolis
York
trading
"
;
...
during the past year.
jumped to the front in interest among
the recent proposal by Mayor Edward
to buy the surface and elevated lines and put them
offering
'
CHICAGO 4
3
Chicago traction news has
the security dealers here, with
On Request
'
the
231 South LaSalle Street
St.
South La Salle
105
Chicago 4
all
and
Chicago Brevities
Analysis Sent
Robbins &
Co.,
&
Street, as manager
the last; thirteen years Mr.
Exchange
Stock
York
New
& Co.
Stock Exchange
S treet
Tel. Dearborn 9200
Tele. CG 156
Andover 1430
Bonner
Blair,
A.
associated
become
South La Salle
of
New York and principal
Stock Exchanges
Recent
/
Copy
has
Cochran
v
FAROLL BROTHERS
Phone
ready
ILL..—Loren
CHICAGO,
under the above
for distribution.
review,
now
iyy.
Ryan-Nichols
208
is
V 9;, / v/;'■&
y
Blair Bonner & Co.
Stock
Common
Member
annual
title,
■'
Standard Silica Corp.
Our
request
on
1944
_
:f A Year of Transition
Teletype CG 11^2
CHICAGO
3
Phone Central
5690
Volume
159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4254
%
603
\
V/e have
NORTH CONTINENT UTILITIES, PFD.
prepared
a
TRADING INTEREST
recent analysis of
IN
KANSAS CITY PUBLIC SERVICE CO.
NATIONAL TERMINAL CORPORATION
CHICAGO MILL & LUMBER CO.
Fuller Mfg. Co.
LONG BELL LUMBER CO.
,
/'c ^') /
'j "»
V1'"!
/; ' ]
■
|
AMERICAN FURNITURE MART
.
'
v
Common
1
t
'
'
*
•
11
1
'*
,
'■
•.
!'
v
'
V
' '
,
"
«
<i,
1
1
1
'
/
li-'
.
'
,
V'"
.
:
ADAMS 6- CO.
Kneeiand & Co.
OP
BOARD
TRADE
231
BUILDING
141 W. JACKSON BLVD., CHICAGO 4
Tel. WAB. 8686 and Western Union
M
Teletype
r
CG
Phone
The securities • of
(Continued from page 602)
Chicago and Cook County War
ownership plan be¬
Finance Committee, with David
came more optimistic.
After the
first day, however* many of the
Dillman,
of
the
Investment
Bankers Association of Amer¬
traction issues again; lost ground.
On Feb. 11, Judge Michael L.
ica as assistant to the chairman.
Igoe of the Federal Court will
Tom E. Hough, Halsey, Stuart
hear a reply to the city's proposi¬ &
Co., Inc., is operating director,
tion
by
the
Sidley committee, and the following are among the
appointed by the court to repre¬ vice-chairmen:
sent the security holders of the
William
McCormick
Blair,
two lines, which are under court
Blair, Bonner & Company; Philip
jurisdiction. Thus far, the Sidley
R. Clarke, City National Bank &
group has kept its opinion of the
Trust
Company;
Maurice
H.
city's offer - very quiet, although
Needham,
Needham,
Louis
&
I the "representative of one group
Brorby, Inc.; and Max Epstein, of
of surface lines junior security
the General American Transpor¬
holders declared recently that the
tation Company.*
city's proposal was far too low
Among the committee chair¬
for those securities.
*
#
«
man,
Frank C. Rathje of the
City Bank
and Trust
With
the
Fourth
War
Loan Chicago
drive almost completed, Chicago Company heads the bank group;
T. Weller Kimball, Glore, Forgan
financial
circles
deserve
great
& Co., heads the corporation and
praise for the fine job they have
done in promoting the sale of the special names committee; A. R.
Federal
Home Loan
government securities.
In fact, Gardner,
Bank of Chicago, is chairman of
little else except war bond sell¬
the
savings
and
Joan
group;
ing has occupied the attention of
Homer Buckley, Buckley, Dement
La Salle Street since Jan. 18.
& Co., special groups; and Ed¬
municipal
modern
McNair
Frank
and
served
of the
Harris
Savings bank
chairman
of
as
ward
has
E.
Bank
the
National
First
Brown,
of Chicago,
loop banks.
Chicago Recommendations
forwarding its plans for the post¬
war period.
Copies of this inte¬
resting booklet may be had upon
request from Fred W. Fairman &
Co.
this
Thomson
Brothers,
208
South
La
Street, will furnish recent
on
Merchants
Distilling
data
Corporation
on
McKinnon,
&
231
Salle
La
weekly Bond
Street, in their
Review stress the
fact that there have
been
no
im¬
portant developments in the high
bond
grade
request.
the
had upon
statistical de¬
be
partment of Straus Securities Co.
South
Salle
from
request
o
Faroil
may
market
the
past
week the Fourth War Loan over¬
South
3alle Street, have
available
up-to-date
circular
on
P.
Hicks
&
Co.
Butler
Price,
231
common
La
an
II.
This
stock.
shadowing the market and every¬
devoting his efforts to put¬
ting it over successfully.
Their
weekly
Stock
Review
one
articles
on
Preferred
which has a chain of features
super-markets, has a satisfactory Stocks For Income, The Position
of Cigarette Manufacturers, and
tax base,
no long term leases,
good cash position and is excel¬ the three important utility dis¬
lently located.
The circular also solutions which took place last
points out its attractive post-war week under the Public Utility
investment
possibilities.
Copies Act, namely, United Corporation,
Central Illinois
Electric
&
Gas
nay be had from Hicks & Price
Co. and Middle West Corporation.
upon request.
company,
Straus Securities Co., 135 South
i,a
They have recently issued a spe¬
cial analysis of Cities Service Co.
Street, have compiled a
Their booklet "1944—-A Year In
attractive circular on Foote
Transition" which is just recently
off the press is timely and inte¬
Salle
rery
Jros.
Gear
&
Machine
ion, common stock.
the
Corpora-
This is just
contains the
National
Terminals
Corporation's
As long as the supply
they will be glad to send a
press
We have
a
corporate
set-ups
Milwaukee,
area
Chi¬
East
were
officials
Halsey, Stuart & Go.
In New Location
dividend declaration
After
thirty-five years in the
Building, LaSalle and
Adams Streets, Halsey, Stuart &
Rookery
Inc. will
Co.
ters
Building, 123
about
South LaSalle Street, on or
April 1st.
The space to be occu¬
pied
comprises V; the first three
floors in the northwest section of
the
building
and
the
(Continued
stock
on
And Engineering Corp.
about
includes
the part of Hal¬
unit
The
the
of
office
Chicago
first
floor.
Halsey,
Stuart & Co. Inc. is the home and
one
organization,
the
of
office
head
which is
of hte largest bond
underwriting and distributing or¬
ganizations in the country and has
branch offices in various leading
financial centers.
Desk
the
is now assisting Paul Spink
trading desk.
/
dressed
La
to
&
Thomson
McKin-
Statistical
non's
Library, 231 So.
Salle St., Chicago 4.
Small capitalization,
shares
common
—
Sold
—
Quoted
ZIPPIN & COMPANY
INCORPORATED
4's
So.
La
Salle St.
CHICAGO 4,
Members
and
Randolph 4696
ILLINOIS
1960
&
York
New
1943—$5.00
in
Other
South
La
CHICAGO
State
2400
Comprehensive
available
CHICAGO, ILL.—Lee Higgin¬
Corporation, 231 'South La
ated
with
has
joined
E.
H.
Rollins
the
&
firm's
Sons,
analyses
request.
208
S.
La
Salle
CHICAGO
Tel.
State
Street
4
CG
9868
95
Chicago
sales organization.
SERVING INVESTMENT DEALERS
We
specialize exclusively in under¬
writing and distribution of securi¬
ties, providing investment dealers
STRAUSS BROS.
Members
New
York
Board of Trade
Security Dealers
Ass'n
Bidg., Chicago 4
Direct
Wire
to
New
York
issues
for
their
Maintaining no retail de¬
partment of our own, we compete
in no way with dealers, but serve
them exclusively. Correspondence
invited.
FLOYD ®. €IM CO.
Exclusively
120
Teletype CG 129
4
attractive
clients.
Telephone: Harrison 2075
252
on
Brailsford & Co.
with
Street
CG
Chicago No. Shore & Milw. R.R.
son
Com.
Salle
Traction Securities
&
for the
Principal Exchanges
In
Specialists in
stock
MIDWEST
Stock' Exchange
Offices
Throughout
Country
CHICAGO
When Issued
Sincere and Company
231
208
of
Our
stock—no
Salle Street, announce? that Fran-,
cis
McDonald, formerly associ¬
Flour Mills of America
FOREIGN'SECURITIES
To
Cities
/ the
Lee Higginson Adds
Francis McDonald To Staff
So. Colorado Power Co.
—
Central 7540
Wires
Principal
bonds—no preferreds.
Dividends 1942—500
MARKETS
Com.
CHICAGO 3
CG 530
only 128,-
000
NEW YORK
Pfd. &
Incorporated
135 South La Salle Street,
share.
Iowa Elec. Lt. & Power Pfd.
COMMON
E. H. Rollins & Sons
31, 1943, $761,260.86, or ap¬
proximately $6.00 per share; book
value, approximately $9.50
per
CHICAGO, ILL.—Elmer Ander¬
who has been connected with
Faroll
Brothers, 208 South La
Salle Street, in various depart¬
ments for
the past twenty-two
Railroad
-
Municipal Issues
-
We Maintain Active Trading Markets
Leading Over'Counter Securities
of Decem¬
March; 250 cash December
son,
1276
in the
ber
Dividends
On Trading
Utility
Industrial
Direct
as
CG
Investment Securities
Public
share.
Net current assets
Blvd.,'Chicago 4
Teletype
has
planes are being delivered as per
Stuart & Co. Inc. represents
schedule.
A second phase of this
only the third in its 41 years of
existence.
The
firm's
original production is under way and the
output should be stepped up ma¬
quarters
were
opened in the
terially in the near future.
Rookery in 1903 where it re¬
Earnings
after
taxes
for
8
mained until 1907 when it moved
month period terminating Decem¬
to Monroe Street in the building
ber 31, 1943, $474,023.77
occupied by the old Central Trust
Earnings per share after taxes,
Company.
In 1912 it returned to
for same period, $3.70 per share.
the Rookery Building, occupying
Earnings per share after taxes,
eventually the entire second and
for month of December, $0.50 per
third floors and the LaSalle and
of
Quoted
—
New York Stock
Exchange
Chicago Board of Trade
141 W. Jackson
reached first stage production and
sey,
corner
Sold
DANIEL F. RICE & CO.
and
Kalb
De
new
—
Members
Highlights
The
in recent years.
Adams
Road Bonds
Bought
Interstate Aircraft and Engin¬
eering Corporation reports that
effect, a building within a build¬
renegotiation by the government
ing.
The lease represents one of
for
1942
has
been
completed.
the most important transactions of
Earnings were not effected. "
its kind' in the LaSalle Street
on
Illinois Township
an-
607)
page
Vi/////-
9-1432
com¬
the
at
WALL STREET, NEW YORK
BOwling Green
Interstate Aircraft
21,000 square feet connected by
private elevator, representing, in
move
I
currently accruing
are
common
Iowa Electric Co. Pfd.
Bought
4
CG 972
•
to new quar¬
move
Field
the
in
Earnings
to
the
on
Randolph 5686
stock.
mon
ALLIED PAPER MILLS
&
CHICAGO
be held around February 15. The
call of the bonds allows for a
i
trading interest in:
BONDS
Listed and Unlisted
231 S. La Salle St.
indicated
have
In
the
1942
recapitalization
plan, the fixed income securities
on
BRYANT PAPER CO.
WESTERN
SECURITIES
■
ain and Toledo.
years,
MINNESOTA & ONTARIO PAPER COMPANY
Exchange
Chicago Stock Exchange
New York Curb Exchange (Assoc.)
Chicago Board of Trade
that, barring unforeseen contin¬
gencies, all remaining bonds will
be retired
April 1, 1944.
The
official call of these remaining
bonds will very likely be made
at the next directors' meeting to
cago, Indianapolis, Maynard, Lor¬
lasts
BROWN COMPANY BONDS—PFD. & COM.
Members
to
ation
Great Lakes
CG 878
New York Stock
MIDDLE
reduced
Chicago,
situated in the
strategically
are
Tele.
HICKS 6-PRICE
means
with plants in Cleveland, Buffalo,
various locations
3
Randolph 6960
$1,274,000. Sub¬
sequent earnings caused the re¬
tirement of $615,000 of these se¬
curities in April 1943 and Corpor¬
resting/
and
rery
latest data.
Earnings are copy of this booklet upon request,
ihown through October 31, 1943; without charge; likewise any of
hese figures have not appeared the reviews mentioned above.
Such requests
should be adpreviously in print.
Copies- of
iff
Tel.
Corporation
perity, which with present scaled-down
abnormally large income returns.<$>
This
circular
0101
are attracting the
interest" of term investment buyers.
Most units suffered the 1929
stigma of overfinancing with fixed income securities.
However,
through recapitalizations, capital structures have been revamped
and many units are now in position to enjoy years of normal
pros¬
area
(Continued from page 602)
State
warehousing units
*
.
CHICAGO
361
National Terminals
Chicago Brevities
Trust
Established 1922
120 South La Salle Street
CHICAGO 4, ILLINOIS
Tele. CG 640, 641 & 642
Telephone
C. L. Schmidt & Co.
SOUTH LA SALLE STREET
Office
Wholesalers
South
La
and
Salle
Chicago 3
Underwriters
Street
Thursday, February 10, 1944
COMMERCIAL & FINANCIAL CHRONICLE
THE
604
under this title shall be
Surplus Property Board Proposed
Central Paper Co.
Koehring Co. V.T.C.
I
Northern Paper
Mchy., Com. & Pfd.
National Tool
A & Com.
wa & m.
!
MASON ST.
225 EAST
;
State
PHONES—Daly 5392. r Chicago:
MILWAUKEE 2
0933 '
Teletype MI 488
States,
owned
^earJudge
of
Committee
handling surplus property
Surplus to the, function.,' ac-}
tivity, or project in connection,
with which it was^acquired or,
accrued.
; ;;\2,
to be
of
reorganization
the
in
Trust
Stock Exchange by the
Executive Committee,
it is an¬
nounced.
:: Citizens
Securities
Chicago
Flankinton Building, largest
officev and
store
building
in
under which bond¬
will
receive par and
accumulated
interest for
their
bonds.
- \
•
•;
Directors
of
Safway
Steel
Milwaukee,
member
holders
Inc.,. Milwaukee,
Troducts,
declared
of
February
dividend
a
payable
record,
share,
28
United Stales
A renewal by the
ernment of Finland
from
.
Marshall
&
Ilsley
Com¬
Bank,
operating
waukee,^ reports
Hull
date
earn-,
$40.83 on the $20
of the year was
stock.
-
;;
Exchange
Bank, Milwaukee, reports operat¬
ing
to
earnings for 1943 amounting
$3.88 a share, compared with
$3.01
of its
in 1942.
The book value
$20 par stock was $49.96 at
the end of 1943.
Washington on that
the following to say
had
that
there
of
Citizens
Parmentier, President
Securities
Company
of
Green
Bay,
was
State
was
had
recently been an
exchange of communications be¬
tween
the United States and Fin¬
the Finnish
position.
Government, Mr,
Hull replied, has recently taken
occasion to say to the Finnish
Government, as it has on a num¬
ber of occasions in the past, that
the; responsibility for the conse¬
quences ; of
Finland's collabora¬
tion with Germany and continu¬
on
The
U.
in
number
Xgo. Exchange Membership
Wisconsin,
Associated Press
t8.
asked ;at (a1 press conference for
information on Stockholm reports
ance
J. M. Parmentier Gets
Jules M.
Feb.
on
with regard thereto:
The
Secretary
of
land
.
National
Marine
S.
a
of
state
of
with
this
war
a
country's Allies,
including the Soviet Union and
Britain, must be borne solely by
the .Finnish Government.
From International News Serv¬
ice advices Feb. 8, from Washing¬
ton,, given in the New York "Jour¬
nal
We
are
interested in:
American,"
we
take the fol¬
lowing:
Secretary Hull said this Gov¬
Chgo. Milw. & St. Paul]
"Rock Island"
Missouri PacT
GIVAN COMPANY
UNDERLYING
First
1
Wisconsin
SECURITIES
Nat'l Bank Building
MILWAUKEE
Tel. Daly 3237
2,
WISCONSIN
Tele. MI 592
ernment recently took occasion to
issue this warning to the Finnish
tain
themselves in
fensive
war
'
a
with
this
title/ and shall be allowed neces¬
traveling expenses and sub¬
expenses (not in excess
per day)
incurred when
absent from his place of residence"
in'"connection with the perform¬
ance of such duties."
sary
,
property; should be
.sold or leased at prices low enough
\to "facilitate the disposition there-
sistence
•
of
i of,'" but high enough to enable the
United States to secure a fair re-
$__
Turn therefor.
"
■
(.5)/ The .saleor Tease of such
property should be at a rate which
will not unduly disrupt trade and
in the executive branch of
Rissln Steel Price
commerce.
Viewed As Unwarranted
"(6) The sale or lease of such
property, should take into consid¬
Price
Administrator
Chester
eration the need for facilitating
United States.
Bowles, according to-an Associ-r}
and > encouraging
the establish¬
ated Press dispatch from Wash¬
"SURPLUS PROPERTY POLICY ment in the various communities
ington, Feb. 5, stated that prelim¬
in the several States by members
BOARD
inary information from a survey
of the armed forces of the United
of
"Sep. 203. (a) There is hereby
industry costs indicates that
States upon their discharge or re¬
"the steel industry does not need
established
a
Surplus
Property
lease from active duty, as well as
Board (referred to in this-title as
a
general upward price adjust-'
by others, of small business enter¬
'the Board'), which will consist of
ment."
prises and with a view to strength¬
the Chairman of the. Board of Di¬
The dispatchTurther goes on to
ening- small business enterprises.
rectors of the Defense Supplies
"(d) The'sale or lease of surplus say:Corporation who shall be the
property shall - be in accordance ..Mr. Bowles added that "no de¬
Chairman thereof, the Secretary
with such regulations as the Board cision will be made before the
of War, the Secretary of the Navy,
shall
prescribe
regarding the studies are. completed."
the Secretary of the Treasury/and
-The Office of Price Adminis¬
times*
places,
quantities,
and
three individuals to be appointed
terms fand conditions of the pro- tration said the survey under way
by the President, by and with the
posed - disposition of such prop¬ is the "most complete ever made
advice and consent of the Senate.
erty; and such regulations shall of steel industry costs."
The three individuals so appointed
"Whether or not particular steel
require advertising for competi¬
shall be businessmen who have
tive bids except in such cgses and mill products will 4 be shown to
had at lqast five years' experience
with respect to such property as need price, increases or decreases
in the business of 'the retail sale
the Board determines that sales or and the extent oL any. such in¬
and distribution of merchandise.
leases by competitive bids would creases or decreases simply cannot
"(b) The Board (1) shall de¬ be contrary to the public interest. be ascertained in the present
termine and prescribe the meth¬
"EXCLUSIVE METHOD OF DIS- stage of the study," Mr. Bowles
ods to be used by governmental
said. "At the earliest, the survey
POSING OF SURPLUS
agencies in making and maintain¬
and
analysis will not be com¬
PROPERTY
ing inventories of property, and
"Sec. 206, No surplus property pleted before March."
(2) shall determine the surplus
Steel industry prices have been
property under the jurisdiction of shall be sold, leased, of disposed frozen since 1941 at levels which
the various governmental agen¬ of otherwise than in accordance
had not changed since 1939. Mean¬
cies that should be sold or leased, with the provisions of this title;
time, the industry has obsorbed
except that where provisions of
and shall inform the Reconstruc¬
two general wage increases and a
tion Finance Corporation as to law are in force specifically au¬
coal cost rise estimated by steelthorizing the sale or other dis¬
every such determination.
men at $1 per ton of steel.
position of any particular prop¬
So far the industry has beer*
"DUTIES OF GOVERNMENTAL erty or class of property, such
able to absorb these increases be¬
AGENCIES
property, or class of property may
cause of: (1) heavy production of
"Sec. 204, Every governmental be sold or otherwise disposed of
armament steel which carries a
in accordance with such provisions
agency (1) shall make and main good margin of return, and (2)
tain accurate uniform inventories, of law if the Board approves such
action as being consistent with the capacity operation of the entire
in accordance with methods de¬
industry, with all plant facilities
termined and prescribed by the public interest.
Government, and any corpo¬
or controlled by the
,
;
•
earning.
Board, of property under;,its jurisdiction;
(2) 4 shall
cooperate
with
the
Board ..for
purposes
"TRANSFERS
BETWEEN
GOV¬
ERNMENTAL AGENCIES
of
•
determining
CORPORATION
state of de¬
the
Soviet
"
'
Active Trading Markets in Wisconsin Securities!
_
Stocks
Lake Superior District Power Co.
manner
Common Stocks
Chain Belt Co.
«
"Sec, 207. Notwithstanding any
title.
-
£05. (a) Surplus property
which the Board has determined
should be sold or leased shall be
sold or leased by the Reconstruc¬
tion
Finance Corporation
in a
-"Sec.
consistent' with the pro¬
visions of this
section.
-
"(b) The Corporation
„
.
shall ap¬
point'an advisory committee for
each class of property which is to
be sold .or leased.; The members
Wisconsin Electric Power Co.
Kearney & Trecker Corp.
Wisconsin Gas & Electric Co.
Koehring Co.
of
such advisory committee
Wisconsin Michigan Power Co.
Le Roi
be
appointed from among persons
Wisconsin Power & Light Co.
Wisconsin Bankshares
Company
THE WISCONSIN COMPANY
Telephone Daly 0525
MILWAUKEE
formance of his duties under
which of the < prop¬
other provisions of this title, gov¬
Government, as it has done on a erty under its jurisdiction is sur¬
ernmental vagencies shall ' make,
number of occasions in the past.
plus property; and (3), shall. Co¬
the} fullest^practicable'• utilization
Mr.
Hull's announcement fol¬
operate with the Reconstruction
of -surplus property in order to
lowed Stockholm reports that the Finance
Corporation in connection
avoid waste and unnecessary ex¬
Finnish Government
had
asked with the sale or lease of surplus
Washington what America's atti¬ property pursuant to the provi¬ pense, and for such purposes sur¬
plus property may be transferred
tude would be toward Finland if
sions of this title.
'
from one; governmental agency to
the German troops stationed in
OF
THE
RECON¬ another, in lieu of its sale or lease
thatcountry were
withdrawn, "DUTIES
pursuant to the provisions of this
STRUCTION FINANCE
but the Finns continued to main¬
Union.
Preferred
commit¬
appointed; by the Reconstruc¬
tion Finance Corporation under
this title, shall be paid compensa¬
tion at the rate of $~ per dtem
when actually engaged in the per¬
ted
.
(
Mil¬
ings of $3.67 a share on its com¬
mon
stock for 1943, against $3.07
in 1942. .Book value at the end
par
.
accounts from
of
.
the "side of "the
on
or accept the con¬
of continuing to-fight
on the side of Germany, was made
known
by
Secretary, of
State
Two Rivers, Wisconsin, has
called $43,000 of its first mort¬
5% bonds due in 1951, as
March 1, 1944, at 103.
.
powers,
war
the Gov¬
to withdraw
sequences
pany,
gage
the
Axis
>
Manufacturing
Hamilton
dent, by and with the advice and
consent of the Senate, and each
-
United States
of its recent warning to
of
reserve
amended, of such
.
Orop Out Of War
of
This is after taxes and
postwar reconversion
$150,000.
Again
Warns Finland To
to
reports earnings of $1.16 a share
for the ten months ended October
81, 1943.
as
ration owned
Metal, Inc., Milwaukee,
Ampco
'Government
1923,
member of any advisory
be uniform
executive'de¬
partment of - the Government or
any administrative units or sub¬
division thereof, any independent
the
each were paid.
10c
term
au¬
and
"(b) Each member of the Board
appointed thereto by the Presi¬
"(3) The, prices at which any
particular. property or class of
; property is sold or leased should
agency- means any
agency
18.
dividends
four
1943
During
change.
have
10c a
February
of
stock
the ninth registered
corporation of the Ex¬
Company is
The
} "(3)
of
Act
•;
"(4) ; Such
appoint
employees as may be necessary:
for the performance by the Board
of. its functions under this title.
'permitted.
--
-
to.
service laws and the Classification
trade' channels.
agency
the
the
by any corporation
controlled by the United
agency.
(a) The Board is
fix the!
compensation, subject to the civil-;
thorized
'
Federal Court, Milwaukee; has confirmed
Bondholders' $
.
■
.
.
~~
Plankinton elected 2 to membership in h the
the
and
"Sec. 210.
to The
"(2) The term 'surplus prop¬
erty' means any property which
has been declared to the central
Duffy of the
plan
appropriate advisory commit¬
appointed as
tee or committees so
or
or
mental
Corporation declared a dividend of 50c a
share, payable February 15 to stockholders of record February 1.
This represents a reduction in the $3.00 annual rate which has been
in effect since the stock was first offered to the public; about two
the
■
.
"(2) The acquisition of large
States, which is under the juris-: quantities of such property for
diction or control of any govern¬ .speculative purposes should not be
Trecker
&
;
"
Bievities..;
Kearney
TITLE
"SHORT
price, time, method, and
be cited manner; of disposing of such prop¬
as
the 'Surplus Property Act of;
erty.
"
■
'
1943;
;;
•;
"(c) In the sale,or lease of sur¬
"DEFINITIONS
plusproperty pursuant, to this
"Sec..202., As used in this title—• title, the Reconstruction Finance
"(1) The term 'property' means Corporation shall, so far as prac¬
any supplies, materials, or- equip-; ticable, be • governed by the fol¬
ment, including real estate and: lowing/considerations:
•
'
improvements thereon, or tangible
(1) Distribution of such prop¬
property owned by the • United erty should be through established
Manufacturing Com.
Fuller
-v
"MISCELLANEOUS
"Sec. 201. This title may,
Mills Com.
Hamilton Mfg., Class
Old Line Life Ins.
I
,
the
"TITLE II
.
r
Pfd.
Central Elec. & Tel.,
Nekoosa-Edwards Paper, Com.
Compo Shoe
Com.
'
,
& Paper
ConsoL Water Power
LaPlant-Choate Mfg. Co. Pfd.
!
miscellaneous receipts,
(Continued from page .596)
IN;
CONTINUOUS INTEREST
deposited
and covered into the Treasury as
Bell Teletype
1, WISC.
MI 291
who, by reason of
shall
their business
experience, are familiar with the
handling and marketing of -such
class of property, or similar, prop¬
erty. It shall be the duty of the
Corporation, in selling or leasing
surplus property, to consult with
Such transfers shall be made
subject to such regulations as the
Board
shall
prescribe.
•I- "DISPOSITION OF
NONSAL-
Henry C. Merritt has been ap-;
pointed Assistant to the President
of the Association of Stock' Ex-;
change
Firms', it was
pi'Sec. 208. Notwithstanding any
of This title, sur¬
plus property which is not salable,
or which for any other reason
it
announced
by John L. Clark, President of
that} organization.
Mr. Merritt
has a background of about twentyyears
and
in the investment banking
business, having
brokerage
with Dillon, Read
been associated
-
ABLE PROPERTY
other provision
Exchange Firms Ass'n
Appoints H. C. Merrill
&
Company;
Company,
F.
and
firms of Smith,
well
More
a
S. Moseley &
member, of the
Graham & Rock¬
Graham
&
Company,
recently he has
been with
and
Republic
Aviation Corporation.
He attended Princeton University,
impracticable to transfer, sell,
and at the start of World War I
or lease as provided in this title,
entered the Army. ;,y; :,
shall be repaired, rehabilitated,
As
a
Lieutenant and later a
donated, destroyed, or disposed of
in accordance with such regula-' Captain in World War I with the
38th Infantry of the Third Divi¬
tions as the Board shall prescribe,
sion, Regular Army, Mr. Merritt
"PROCEEDS FROM SALE OR
served through all the major cam¬
is
LEASE
OF
SURPLUS
PROPERTY
"Sec. 209. All
sale
or
proceeds from the
lease of surplus property
paigns and holds the Distinguished
Service Cross, Silver Star with
Cluster, Purple Heart, Legion
Honor and Croix de Guerre.
of
Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4254
Bond Buyer
MacArthur Is Ro; I
Royal Bank of Scotland
Insurance & Bank Stocks
Johnston Of Chemical Bank
Incorporated by Royal Charter 1727
605
Reports
Bought
ANALYZED
HEAD
COMPARED
-
Special Bulletin and Booklet Service to Dealers & Brokers
throughout Scotland
Trading daily 7
LONDON OFFICES*.
3
Quoted
—
OFFICE—Edinburgh
Branches
.
Sold
—
REVIEWED
-
to 5 p.
a. m.
Inquiries invited.
(P. C. T.)
m.
Orders solicited.
*
'
Bishopsgate, E. C. 2
B West
BUTLER-HUFF & CO.
Smithfield, E. C. I
'
49
'
CALIFORNIA
OF
Charing Cross, S. IV. 7
210
Burlington Gardens, IV. /
64 New Bond Street, IV. I:
West 7th St., Los Angeles
M;
New York
,
.PRIVATE
Chicago-
-
TELETYPE
,
1
San Francisco
A.
L.
,
WIRES
-
27!)
L.
-
"
280
A.
'
;
Sr-C
Seattle
-
TOTAL; ASSETS
£108,171,956
Bank and Insurance Stocks
Associated Banks:
Williams
Deacon's
By E. A. VAN DEUSEN
Bank,
Glyn Mills & Co.
Ltd.
This Week—Bank Stocks
,
'
A recent issue of the American Banker published a list of "The
Hundred Largest Banks in the United
amount of deposits on December 31,
Australia and New Zealand
1943.
The total deposits of
$55,105,935,658, while their capital aggregated
$1,242,077,500 and surplus and undivided profits, $2,207,533,917. The
ratio of total deposits to total capital funds is 15.95.
Five years
ago
their
deposits aggregated <$>
—
BANK OF
NEW SOUTH WALES
(ESTABLISHED 1817)
P&id-Up Capital _~L
_
funds
Reserve
Fund
Reserve
Liability of Prop.- 8,780,000
Day; Percy H. Johnston, Chairman of Chemical Bank
Laraine
£23,710,000
30th
__£187,413,762
,
K.B.E.,
General Manager
11
'
DAVIDSON,
ALFRED
SIR
t
Head Office:
George Street, SYDNEY
is the oldest
The Bank of New South Wales
and
largest bank in Australasia. With over
800 branches in all States of Australia, in
Islands,
New
Zealand,
the
Pacific
London, it offers the most
efficient
traders
and
and
complete
banking
service
to
investors,
and
travellers interested in these
countries,
Threadneedle
47
a
his
father,
LONDON
8
end
7
,
l
«nd
EGYPT
sort of
a
courtesy
I believe
just before he was made
Marshal, of the Philippines."
this
was
The financial district conceded
that if Percy H.
of
man
all the
the
Johnston, Chair¬
Bank
Chemical
&
did not steal the show,
at least he got away with a good
Trust Co.,
the SUDAN
NATIONAL BANK
of INDIA. LIMITED
the
to
Kenya
Government
in
in India, Burma,
Colony and Aden and
Branches
Subscribed Capital
Paid-Up. Capital
•
Ceylon, Kenya
Zanzibar
£4,000,000
_£2,000,000
conducts every description
and exchange business
Bank
of
banking
v:
Trusteeships and Executorships
/
also undertaken
.
something suspiciously like a run
on
Old
Bullion.
Investigating,
they found about 1,000 persons in
the lobby rushing Mr. Johnston.
Now A
Partnership
LOUIS, MO.
.ichter J
Company,
ST.
—
Scherck,
Landreth
uilding, formerly a corporation,
i now doing business
as a part-
ership.
cherck,
' Partners
are
Gordon
Marjorie L.
Scherck,
[enry
J.
Richter, Charles W.
[ahn, and Irwin R. Harris.
All
^ere
previously associated with
le corporation.
Attractive Situation
lifers
Casualty
interesting possibilities for
investment accord-
detailed circular discussig the situation issued by Huff,
reyer &
Hecht, Inc., 67 Wall
treet; New York City.
Copies
f this circular may be had from
&
Hecht
upon
Production
dropped to 96% of ca¬
pacity,
Some experts think it
soon will be 85%. That means that
America
of
workers
work
Steel-
United
the
of
of
out
are
foreshadows things to
Laird, Bissell & Meeds
Members
come."
100
City—•
New
Banks)
20!
York
($0001
23,686,961
6
6
Chicago
Philadelphia
.
5
Pittsburgh
2,036,093
re-
.
situation in
.
3.4
137,545
4.0
3.7
144,841
4.2
2.6
193,044
5.6
his
team
will wind up
the drive
for
valuation
New
York
65,087
1.9
85,830
2.5
3
1,483,018
2.7
65,953
Louis
3
824,134
1.5
50,335
1.4
16.4
34,332
1.0
16.1
with
a
"pretty
good showing," since it had
three
drives
$885,600,400,
bank's
gar¬
64,811 subscriptions in the
for
a
exclusive
total
of
of
the
subscription of $335,000,000.
Participating in the ceremonies
at
the
bank's main
Broadway
were
and Laraine
Day,
office at
165
Brian
Donlevy
screen
stars, and
estimated
of
table
Western
&
wanna
stock;
1.0 s
for
important
Lacka¬
earnings
railroads,
a
ratio
rail
rail
gage
rail
bonds,
1
"'2? ■'
3
4
6
7
9
bonds,
reorganization
minority
stocks
and
guaranteed telegraph stocks. Cop¬
ies of this
be
interesting circular may
had upon request
from B. W.
from a
low
of 7.4
1.9
10
22.5
M'.
14.5, which
bank"
The
principal
ratio is
City's
is well below the "hundred
of
ratio
reason
15.95.
for
Detroit's
particularly
high ratio is that deposits in her
four banks appear to have
ex¬
panded at a faster rate than in
other centers; in five years they
increased
have
from
$834,519,300
$2,133,966,824, an expansion of
156% compared with an expan¬
sion of 71.2% for the "hundred
to
banks."
Comparative
10
largest
as
of Dec. 31,
1943, are shown in the
table:
•
-
'
following
■
,
business
10.0
16.7
19.4
12.7
17.6
14.2
14.5
formerly officers of the corpora¬
tion.
Associated with the new part¬
&
been nership, which will continue in
partnership doing
name of
under the firm
Pizzini & Co., 55 Broadway, New
Camp & Co., has been formed by
Norman W. Hunter,
Herman L.
Metropolitan Opera.
York
Lind
and
•
OREG.—Camp
Co., Inc., a corporation, has
dissolved and a
•
24.1
—
PORTLAND,
*
Ratio
16.0
17.6
——
Camp Co. A Partnership
the
statistics for
banks,
Deposits
Capital Funds
Chase National, New Yorki.
:
$4,375,582,000 $272,878,000
National City,
New York—
——J; 3,733.649,000
211,554,000
Bank of Am. N. T. & S. A., San Francisco
3.498,153,000
145,154,000
Guaranty Trust, New York__l
2,903,794.000
291,392,000
Cont. III. N. B. & T., Chicago———
2,173,956,000
130,406,000
First National, Chicago——
—1,803,686.000
93,190,000
Bankers Trust, New York
1,594,694,000
125,367,000
Manufacturers Trust, New York
i
1,580,909,000
89,651,000
Central Hanover B. & T., New York,,—
1,477,219,000
104,108,000
First National, Boston
1,247,973,000
86,196,000
.
;i:
22.1
-
Bank and City—
Igor Gorin and Doris Dorre of the
City.
"
*
in
stocks, underlying mort¬
ranges
:
Pittsburgh banks to a high of
for
Detroit
banks.
New
York
-
special interest is the ratio
deposits bear to capital
funds.
It will be noted that this
Of
for
addition to quotations on guaran¬
teed
the number
32.8
which
8
several
to
of banks'.
current
and
high deposit per¬
relative
centages
5'
(ending Feb. 15)
7.4
32.8
3.9
___•—
Angeles
St.
approximate
4s;
13.5
14.1
'
3.4
Allegheny & Western
Mortgage
19.6
7.9
1,892,980
•
First
14.5
2,133,967
Los
interesting
the
of
Funds
21.5
259,988
273,372
4
Detroit
"Railroad Securities
discussions
to Cap.
47.3%
9.8
.
-
Hoo
Banks)
($0001
10.1
1,431,672
4
___
o
1,632,851
43.0%
1,852,608
;5\
Eoston
The current issue of B. W. Piz-
brief
Deposits
Funds
(100 Banks)
5,598,187
5,372,940
7
Francisco
San
for these cities'
contains
Exchange
YORK S, N. Y.
Ratio
Attractive RR. Situations
& Co.'s
Stock
Capital
% of
-iS
Quotations"
York
'
; Mr.
union
zini
New
120 BROADWAY, NEW
Cleveland
short time. Maybe this
or on
geographical distribution of
largest" banks is
New York City, 20;
"hundred
Number of
in basic
has
members
Copy upon Request
Banks (% of Deposits
Rank
Mr. Johnston said he "felt sure"
lg to a
Geyer
"Unemployment is a factor now
the steel industry," Mr. Mc¬
Donald said.
"It (the industry)
has let thousands out in the last
in
months.
City Banks
•
,
the last war
last
Company
down
way
smunerative
[uff,
according to an Associ¬
dispatch from which
the following is also taken:
Press
steel
York
Francisco, 7; Philadelphia, 6;
Telephone: BArclay 7-3500
Chicago, 6; Boston, 5; Pittsburgh,
tV Bell Teletype—NY 1-1248-49
L. A. Gibbs, Manager Trading Department^
5; Los Angeles, 4;
Detroit, 4;
Cleveland, 3; St. Louis, 3; Cin¬
cinnati,
3;
2 each
in Buffalo,
Kansas City, Minneapolis, Dallas,
(Ind.),
Milwaukee
(Wis.),
and
Seattle,
Portland
(Ore.)
and St. Paul (Minn.).
It is of interest to note that the
Honolulu;
1
each
in
Newark
(N. J.), Providence (R, I.), Hart¬ 20 banks in New York City, which
constitute in number 20% of the
ford (Conn.), Rochester, (N. Y.),
Baltimore
(Md.),
Washington "hundred largest," hold approxi¬
(D. C.), Wilmington .(Del), Louis¬ mately 43% of the aggregate de¬
ville
(Ky.), Winston-Salem (N. posits of the hundred banks and
their
total
capital
funds
CO, Charlotte (N. C.), Atlanta that
(Ga.), Savannah (Ga.), Birming¬ represent approximately 47.3% of
ham
(Ala.), Memphis
(Tenn.), the aggregate. The following tab¬
New
Orleans
(La.),
Columbus ulation brings out some interest¬
; •<'
•
(O.), Toledo
(O.), Indianapolis ing comparisons:
at 48
stand
members
of
the alphabetical
list is the firm of Pershing & Co.
Warren Pershing, now with the
armed forces, is this firm's head,
and his father, General John J.
(Blackjack) Pershing, cut quite a
figure in military circles during
and
nered
American
Feb. 6,
few
de¬
McDonald added that the Cincinnati
3
554,020
is asking, during current
Stage stars and opera singers
San Francisco, with 7% of the
negotiations on new steel wage
were there, service men and boot¬
number of banks, has 10.1% of
for a two-year pact
blacks.
Somebody started a ru¬ contracts,
guaranteeing a 40-hour work¬ deposits, while Chicago, with 6%
mor that Frank Sinatra was sub¬
of the number of banks, has 9.8%
scribing and the feminine con¬ week for all present employees,
of deposits. All other cities do not
it
anitcipates
lay-offs
tingent of bond buyers was imme¬ because
fare relatively as well in the mat¬
diately swelled.
The bank ex¬ during post-war conversion.
ter of deposits. In the case of San
Joseph Scanlon, acting research
plained that Mr. Sinatra was not
Francisco, the large deposits of
there, but that virtually every¬ director for the union, told dele¬
Bank of America National Trust
gates from eastern' Pennsylvania,
body else was.
southern New Jersey and Efela- & Savings Association, and in the
/Team No, 7, it/developed, has
case of Chicago, the large deposits
ware that 68 open-hearth furnaces
more than a splattering
of patri¬
of
Continental Illinois National
are idle now.
otism in its physical makeup.
Its
Bank & Trust Company, account
number
Icherck, Richter Company
s
of the1
ated
the'New*
.
V;i.|Resei^q.jFtthdu^^^i-£2,2pofOQ0^!:/
The
Steel-
'affiliate
an
of
Governments Bondholdings* ofj*
.
Colony and Uganda
Head Office: 26, Bishopsgate,
London, E* C.,
'
United
the
of
on
was
The General looked fine and
part of it. Passersby in front of
the Chemical's main office saw
Bankers
Unemployment, a p o s t - w a r
threat, already is affecting the
stated David J. Mc¬
Donald, International Secretaryof America,
Sources
tofjUnited'States
Trust
with
C.,
N.
dn<*
lncome
San
steel industry,
Treasurer
Charlotte,
prepared
of
,
the list is
on
American
is
100
have
Breakdowns
follows:
as
Congress; ef Industrial Or¬
ganizations," at Philadelphia, Pa.,
Gen.
recalled
visited with old friends.
principal Towns in
71.2%.
bank
$22,-
National, New York, with
of
$4,375,581,741,
and
number
these
Lay-Offs In Steel
Industry Reported To
Be Under Way
workets
£3,000,000
C.
or
one
We
mean¬
by
deposits
The
in 1938.; "It
AGENCY
in
many
Chase
Deposits
expanded
posits of $136,795;555.
Mac Arthur's last visit to the bank
Cairo
VLlng William Street, E.
Branches
as
£3,000,000
.
,
home
family—
and grandfather—has
Johnston
Mr.
call.
.
the
generations.
;;:^Head"'-Office" Cairo'
I
MacArthur
dealt with Chemical for
of EGYPT
FULLY PAID CAPITAL
General's
the
at
The
bank.
RESERVE FUND
past Mr. Johnston's
previous war loan drives re¬
ceived
Commercial Register No.
a
very
poured
Number
Co.,
cablegram from Gen. Douglas MacArthur. He subscribed
substantial amount of bonds of the Fourth War Loan
Campaign and I'm' entering it as/?—-——
—~—
'.
subscription No. 1." The' cable¬
gram, which acted as "no little
stimulus" to war bond buyers
I received
for
in
NATIONAL BANK
10.55.
have
911,708,008
Percy H. Johnston, Chairman of the Chemical Bank & Trust Co,
of New York and Captain of the financial district's Team No. 7 in
the Fourth War Loan drive, smiled like a man with an ace up his
sleeve. And he had one. Upon inquiry he stated, "A few days ago
General's South Pacific iieadquarters and is identical with others
Berkeley Square, W. 1
of
while
Company; Brian Donlevy
Trust
desk rail morning, came frorii
C.
E.
Street,
Agency arrangements with Banks
throughout the U, S. A.
:
&
who
LONDON OFFICES:
29
ratio
6,150,000
Aggregate
Assets
Sept., 1943
and their capital
$3,049,258,148, which give a
$32,194,227,650
£8,780,000
.
States", listed in order of the
these banks aggregated
Lawrence
W.
Shiels,
the Porter Building, will be
ard
Rich¬
M.
Perry, Lilien E. Newman,
John P. Hoben, W. Glenn Field,
and
Eugene
Courtney,
all
merly with the corporation.
for¬
WUJAJ
i„
j
(Continued from page 594)
,
Scanning the Reports
net
Affiliated Fund, Inc.—Total
REPORTER'S
.
there may be some fur-Vand
While
amounted to approx¬
stone Funds
Thursday, February 10, 1944
For 1944
Investment
Mutual Funds
part of
ther advances in the early
'
.
FINANCIAL CHRONICLE
THE COMMERCIAL &
eo6
.wwwwm' MJ
AA*.*V*.
.
will force German capitulation then or shortly thereafter.
>
!§I REPORT 111!
r
With the decks
cleared
in
$10,000,000 par imately $71,000,000, as compared 1944, it is believed that the cost
we
question
whether
of
living should remain fairly Europe,
outstanding) with $46,250,000 a year ago.
Provided
nothing happens to
Japan would for long face the
stable during the first half of the
Manhattan Bond Fund, Inc.—
increased during 1943 from $18,alter
the
current
schedule
the
concentration
of
Allied
might
Total net assets during the year year and should .show an actual
562,587 to $22,368,903,
Net asset
without trying for peace, even on Treasury's Fourth War Loan Drive
assets
(including
of debentures
value
per
decline in the second half, assum¬
share rose from $2.16
1942 to $3.24 at the
end of
STEEL
,
net
Ltd.—Tota^
Fund,
DISTRIBUTORS
with
year earlier.
per share rose
$1,579,172
from
a
value
asset
Net
63 wall
the
Fund,
Investment
$10,884,000
to
nearly 50%.
sets
1943
31,
December
of
as
assets
net
Massachusetts Investors Second
$18,323,100, equival¬
per
share.
This Fund, Inc. — Net assets during
1943 increased from $7,633,901 to
compares with a net asset value
Per share asset value
per share of $24.52 a year earlier. $9,475,388.
amounted to
$27.69
to
ent
$10,810,478,
totaled
sets
Inc.—Net
Fund,
Chemical
v
a
per
year
Inc.—Total
Fund,
Fidelity
rose
as¬
Fundamental
Inc.—
Investors,
1943. Net
share rose from
value per
New England
$20.89,
to
advance of
an
29.6%. /
Group Securities, Inc.—Total net
December
on
amounted to
$18,107,409
the
1943
31,
or
$9,390,105
nearly
year
a
earlier;
1^
assets
net
from
rose
$34,253,144
Net assets per share
December 31, 1942 amounted
$10.17.
share.
at
$5,974,300
Investors Mutual, Inc.
—-
Total
assets
net
during the year
than doubled, rising from
612,630 to $25,849,737.
Keystone Custodian
ries
B-l—Net
assets
more
$12,-
Fund,
Se¬
totaled
$2,-
237,383 at the 1943 year end,
compared with $2,465,390 at the
Series
from
to
K-2
—
Net
George Putnam Fund—Net
rose
December
on
31.
1943.
As
of
bined
February
net
assets
2, 1944,
of
all
10
com¬
Key¬
of
as
amounted
increased
1943
share.
Quarterly
per
follows:
Series
*
B-l, 2, 3 and 4 in Bonds
—
share,
a
Shares—Net
at
$17,971,144 on
January 15, 1944, equivalent ' to
$7.70
per
share.
Comparable
figures for a year earlier were
$14,626,447, equivalent to $6.22
pected for the first half of 1944
with
net
corporate
earnings
slightly
Shares, Inc.
$9,179,481
were
$7,158,898
1943, compared with
at the end
of
1942.
Per
asset
share
value
rose
from
Prospectus
State Street investment Corp.—
Total net assets stood at $46,865,526 at the 1943 year-end, amount¬
$78.59
with
to
share.
This
assets of
per
a
net
$36,181,374, equivalent to
per share a year earlier.
Union
Trusteed
Funds,
$63.29
Inc.—
your
be obtained from
local investment dealer or
NATIONAL
Securities Series
downs of
50 CONGRESS STREET,
BOSTON, MASS,,
Assuming
purely
plants, some
reduced op¬
war
industries will go on
erations
during conversion, others
maintain
will
addi¬
some
burden.
in Europe in the second
there will be some shut¬
half,
unchanged
still others
and
tions
opera-:
to
go
new
These varying industrial
prospects
will
require
careful
highs.
study.
the
whole, the-overall de¬
corporate ; net earnings
should
be, small,V probably
less
than 15 %, and dividends will be
On
cline vin
threatened
in¬
isolated
in
only
stances.
COURSE
THE
OF
PRICES
SECURITY
of
led
the
Winter
us
to
although
place,
progress
of
rapid than we anticipated. These
developments are:
(1) a great
and
growing preponderance of
men and munitions on the Allied
(2)
side,
oration
the accelerating deteri¬
of
German
and
power,
and
man
Allied
(3)
command of the air. The German
Prospectuses
upon
Research
I'i0
LOS
Corporation
BROADWAY,
NEW
YORK,
(5)
ANGELES, 634 S. Sprin# St.,
(14)
10 Post Office Square (9)
CHICAGO, 208 So.
La Salle
St.
(4)
inventories
off
in
populations.
This
long withstand:
(1) A successful invasion; ;
(2) Continued defeats on the
Russian front,
(3) Intensified bombing,
(4) The defection of some of
its satellites,
(5) The cutting off of Rou¬
manian oil.
is
anticipated
that
a
suffi¬
occurred
have
by
mid-Summer
sets
during
1943
rose
from
$7,~
287,925 to $10,410,236. Asset value
per share increased from $13.46
to $15.78. ;
: -l
Wisconsin Investment
assets
per
December
$1,295,542, equal to $3.01
share, compared with $2.20
share on December 31, 1942.
totaled
per
on
Co.—Net
31,
1943
are
inclined to look for the proposed
creasing savings of the commu¬
nity may be expected to create
financing of the Virginia Elec¬
heavy demands for the goods to
be manufactured in peace time.
The backlog of public purchasing
power, which is expected to ex¬
ket.
ceed
large
hundred
one
and
billion
dollars
by the end of 1944, seems a vir¬
tual guarantee of a high level of
business
for
two
or
more
has
re-conversion
once
years,
been
ac¬
complished.
tric & Power Co.,
to reach mar¬
In fact another hearing is
Securities
scheduled before the
Commission to*
day which may clear the way
for early offering of the bonds
and
Exchange
involved.
of the proposed
out
Growing
absorption of the Virginia Public
this financing will in¬
Service Co.,
sale
the
volve
Inflation
of
plus a
$24,500,000
of
first mortgage bonds
3 V2 %
We
totally disagree with those $5,000,000 bank loan.
drastic inflation of
the runaway type.
Indeed, suffi¬ Receptive Market Seen
who
expect
cient
temporary
may
sion
period to give us
of deflation for
gree
being.
pect
the
unemployment
the re-conver¬
accompany
an
de¬
some
the
time
Thereafter, we may ex¬
inflation of the type of
1920's,
confidence inflation
good business, taxes
favoring
"risk
capital"
and
a
conservative
government.
The
confidence
type of inflation is
usually most strongly manifested
in common stock prices and iso¬
based
a
on
Competitive
Judging by the market behavior
and file of the more
of the rank
recently
distributed issues the
forthcoming offerings appear as¬
sured of a good reception.
With scarcely a single excep¬
At
the
of
top
bull
to
than
less
even
or
bonds. Hdw far
currently
showing
are
sues
levels
or
their offering
from
premiums
prices.
Although the bid price for three
four bonds falling in that cate¬
right at the original of¬
markets
in which the current quo¬
issues
tation is below the offering lev.el,
high grade
from such
are
we
such is¬
selling at
substantial
tion better than a dozen
fering price, there is not a single
instance in a list of fifteen selected
Sources
Income
stocks typically sell to yield close
Oklahoma Natural Gas Files
situation today is shown by the
fact that
of December
1943
as
a
Moody's Stock Yields were 4.90
as against high grade bond yields
at
On
2.74.
from
stock
current
of
advance
an
75%
stocks
levels
would
still yield more than
grade
bonds
high
in
relationship existing in
just prior to the great bull
and
would
be
about the
Another
On
the projected
cover
bonds and preferred
trading
range,
by
the
lows
1938,
though
trials
made
1942.
The
limited
roughly
highs
and
of
indus¬
in April
non-peace
lows
new
final
decline
Jan¬
in
the low¬
est volume for twenty-five years
uary-April 1942
was
and
sale of new
stock.
The necessary data is now
Securities
the
of
covering
mortgage /
first
in
mature
to
bonds
be¬
Ex¬
and
Commission
$18,000,000
purely technical basis the
is
still
in
a
five-year
a
of
ing on the back of the stove for
quite a while moved a step nearer
market with the registration by
Oklahoma
Natural Gas Co. to
change
market
piece
prospective
financing which has been simmer¬
fore
Technical
1961
plus
Series A $50
cumulative preferred stock. ?
180,000 shares of
par
"'.-'A'
•"»
Funds from the sale of these se¬
curities
together with $6,500,000 of
will provide for the
of outstanding bonds,
loans
bank
retirement
great
there
on
selectivity
between groups like the rails and
was
"peace" stocks which held above
the
1941
Such
a
lows
for
other
groups.
after
such
and
condition
long period of
turn
$1,786,022 to $3,296,598.
bankers
behind
far
Not
still in¬
the
with
in the past
Aggregate net assets rose during
1 '
banks.
being
lines, and
are
many
1926
Wellington Fund, Inc.—Net as¬
request
Proceeds, will be used princi¬
pally to provide the issuer with
additional
working capital, but
market of 1926/1929.
gamble seems doomed, and it is
offer¬
Treasury
sight, Congress,
some $14,596,000 will
be applied
Baruch
Committee
to the redemption of that amount
and business itself
are
actively
of long-term notes now held by a
planning policies to mitigate the
of the country's major
transition
from
war
to
peace. group
General Staff is apparently will¬
Allied
between
special
ing to gamble on its ability to
repulse an invasion of the con¬
tinent so bloodily as to discourage
not believed that Germany could
;
}
of
ings.
With victory in
predict the end
the
$40,000,000
the "trail-blazer" for the next
gory are
European War
in the
1943/1944 have taken
of
year-2%% debentures regarded
as
run
Re-Conversion
developments
of
ap¬
Phillips Petroleum Co., twenty-
better
lated land values.
The War
expected
1943 from.
BOSTON,
The Keystone Corp. of Boston
and
in¬
cient number of these events will
National Securities &
may
costs
tax
the
$7.41 to $9.16.
K-l, 2 in Preferred Stocks
S-l, 2, 3, 4 in Common Stocks
in
creases
of
because
lower
material
share.
Selected American
Series
Series
rate of
the
about
at
the fourth quarter of 1943 is ex¬
It
as
10% in
A general level
1942.
over
which
Custodian Funds
investing their capital
earnings
corporations
the Allied offensive has been less
Income
compares
Certificates of Participation in
Trust Funds
that
all
issue
istered
look for securities values.
this
approximately
of business
The
$7,965,000 or $13.06
This compares with
stood
assets
per
for
taxes
year-end
1943
the
to
$5,873,000, or $11.29
year earlier.
ing
;Tstone
estimated
is
It
after
as¬
at the end of
assets
$513,750 at the end of 1942
$1,265,503
1943
Power
Earning
stand it
now
likely that corporate un¬
derwriting will get away to a
fast start with the recently reg-
and the out¬
confidence
worked
low point
a
—Total net assets
-end of 1942.
30,
business
things
pears
A
Republican victory
greatly
stimulate
both
should
Swollen
corporations.
in the level of
securities prices and that these
figures are not comparable with
calendar year-end figures.)
was
per
increase of 34.9%.
as
November
that
noted
Net asset value per share during
this period rose from $14.64 to
an
30, 1943 stood
compared with
$5,246,592 at the close of the pre¬
vious fiscal year.
(It should be
sets
$19.75,
Net
—
assets on November
beginning of 1943 to $47,157,478 at the end of the year.
at the
Stocks, Inc.
York
New
chance.
the
k
*ryr;
A
As
the
and
have
to
seem
most
peace
to
licans
the
023,243 at the end of 1943, com¬
pared
with $3,808,619
a
year
earlier for a net gain of 84%.
on
Roosevelt
the
sues.
is not
It
limit.
to
war
Democrats; otherwise the Repub¬
exemptions on invested cap¬
ital will prevail.
The new bill
is not expected to have a signif¬
icant effect on the earnings of
tional
increased
overall
believed
the
on
going on when Election Day
chances appear to favor
President
age
to 1 $7,-
000 to $9,682,000 during
double
the
assetsfrom
net
series
various
per
Net assets increased from $6,464,-
assets
—
Fund—-Net assets
on
December
31,
1943 totaled
gain, of about 50% for $2,851,457, equivalent to $11.99
600,000,. a
the yeari
$16.12
Series
Securities
National
during 1943 increased from
approximately- $2,400,000 to $3,-
sets
asset
$8.21 to $9.90.
from
31, 1943. Aggregate
assets of
$8.91
equal to
earlier,
$9,123,774,
$9.40
or
per share on December
This compares with net
share
as¬
80%
na¬
arrives
proposal of the
House bill to reduce the percent¬
Massachusetts Investors, Trust
amounted
—Total net assets on December
to
$9,319,029 on December 31,
1943, compared with $8,255,541 at 31, 1943 were $138,370,263, equal
to $20.20 per share as compared
the end of 1942.
with $108,268,447, or $16.89 per
Century Shares Trust—Net as¬
share a year earlier.
Ltd.*—Total
still
1944
the
situa¬
If the conflict in Europe is
tion.
retention of
the
by
cases
is
largely
believed that the
$15,893,000, a percentage gain of
$11.56 to $14.39.
Canadian
many
street—new york
from
increased
1944, although
this increase will be-cushioned in
Incorporated
GROUP#
December
31,
1943
amounted to $3,103,547, compared
on
election
hinge
payments will
higher because of the 12.%%.
installment on the "unforgiyen"
portion of the "transition" year.
An increase in the corporate ex¬
cess
profits
tax
rate
to
95%
seems definitely in. prospect, but
Prospectus on Request
equal to $99.19 per unit of bene¬
ficial
interest,
compared with
$617,729, equivalent to $94.38 per
of
tional
be
Securities, Inc.
A Class of Group
Trust
of
America — Net liquidating value
during 1943 rose to $1,890,665,
Bullock
vidual tax rates will not increase
in
Investment
unit at the end of 1942.
Developments to date make it
safe to assume that indi¬
fairly
SHARES
ing 1943 from $3,690,869 to $4,460,629. Net asset value per share
rose from $2.53 to $3.27.
Situation
outcome
The
■<ki
about this time next
over
and
underwriting fra¬
ternity will: be back at its regular
business of placing corporate is¬
Taxes
dur¬
assets increased
—Total net
assets
week
Political
1943.
American Business Shares, Inc.
Bond
will be
terms.
onerous
ing the fall of Germany.
at the end of
■r
^
"
value
see-saw
failed to mark
the
a
The
better.
a
has never
major
subse¬
recovery has been slow,
with volume increasing on rallies,
quent"
but corrections taking a sideways
course
rather
than
declining.
Such
a
condition
marked
the
period 1904, 1921-22, 1923-24, and
1935, all beginnings of accelerat¬
ing upswings of major propor¬
tions.
:
Forecast
The
price
/
of
preferred stock and bank loans.
(Continued on page 607)
marked the
Prices
correction
immediate
The
market
of the market
November of 1943 is
to4 have
believed
been
adequate.
course
of
the
marked by
a trading range within the limits
of the July-November 1943 highs
may
that
are
likely
the
should
the impor¬
developments
war
in the next
few
In any event, we believe
months.
that
the
of
tance
well be
in view of
lows
and
second
half
featured
be
of
by
1944
steadily
rising prices.
To
the
Stock
course
from July to
>
avoid
Editor
"we"
of
possible
"The
confusion,
Letter"
says
appearing in this discussion
which applies to Mr. Sweet.
wt
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4254
159
Our
Invest in Victory
Thus
store-rooms.
houses
(Continued from page 606)
Decision of the company to start
litigation looking toward a court
test of the validity of the 20% ex¬
eliminate
do
incorporated
Street, New York 5
the courts before
the
Canadian Securities
end
of
the
current
week.
Meanwhile the financing will be
held up pending the outcome of
war's
surplus
Ware¬
demurrage
for loading,
after
years
charges and expense
unloading and cartage.
"(6) Available to users of Pub¬
be then
lic
is
cerpts
which
this
from
skilled
add
...
the
Merchandise
Warehouses
cooperation. of
their
liquidation,
earnings should continue
satisfactory rate for from 3
tion,
without
sideration,
accountants,
correspondence
cise tax on gross revenues of pub¬
clerks, freight tariff experts and
lic utility companies
operating in packers.
These men are familiar
Detroit
will
delay indefinitely with
every
physical
detail
of
projected financial of the Mich¬
warehousing and with the effects
igan Consolidated Gas 'Co., it is
of
local
ordinances,
insurance
now indicated.
laws and tax rulings upon stored
Acting with the Detroit Edi¬
property.
son
Co., the above mentioned
"(7) By using Public Merchan¬
utility was reported ready tu
dise Warehouses capital invest¬
take its case to
Wood, Gundy & Co.
14 Wall
last
private warehouses and very sel¬
dom
possible for branch office
Reporter's
Report
Waits On Litigation
Buy FOURTH WAR LOAN Bonds
607
war's
taking
the
to
a
<5
termina¬
into
con¬
business
to
We quote ex¬
new
available.
current
this
to
at
publications
consensus
of
opinion:
UNITED
STATES
NEWS, No¬
19,
1943—"When
war
stops,
there will not be
enough warehouses in the coun¬
try to hold the vast stocks of ma¬
vember1
work
terials
and
parts
left
over."
FORUM, December
20, 1943—"War surpluses can not
and must
not
be
liquidated in
ment
for
th< ^maintenance of such a manner as to impair the
storage
places - is
eliminated. manufacture and orderly distri¬
BUSINESS
There are no local real estate bution
of 7 new
merchandise."
affairs, looking towards the post¬
taxes, nor expenses for deprecia¬
LIFE, January 10, 1944—"After
the action.
war
tion of building and equipment.
period, no other country faces the future with higher hopes
the World War, it took six years
The company has plans for re¬
and greater confidence than Canada.
Since the war, the Dominion
to
liquidate
surpluses of only
"(8). The use of Public Mer¬
has emerged as a world power in its own right. The Government, funding its outstanding first mort¬
$5,000,000,000.
This time it may
chandise
Warehouses
enables
a
gage bonds, serial notes and pre¬
which can' look back with pardonable pride on its record of high
manufacturer
to 1 predetermine take 10 or 15 years."
7;7'-;7
ferred stock by means of the sale
achievement in the prosecution of the war, and its masterly man¬
with
With all funded debt elimin¬
At this critical stage in world
of
agement
well
now
The
;
concerning
the
Minister
that
issue
there
in
of
will
no
before the
tions
of
elec¬
expir-
Spurred by the stimulus of
war
exigencies, Canada's economy is'
longer one-sided. To her vast
agricultural
and
mineral
sur¬
pluses, Canada can now add a
rapidly developing industrial pro¬
duction; It is obvious, therefore,
that Canada will play a promi¬
no
.
nent role in the scheme of world
;vitally important
time cooperation
.
it
and
war,
that
with
is
war¬
our
the
Do¬
our
will
only
benefit
Canada
interest,
own
such
it
but
a •
is
been
Nationals continued
with the 5s of October,
1969, bid at 117.
Ontarios and
Quebecs were quiet but firmer.
were
higher.
strong
increased
was
higher
bia?,
turnover at
policy
also
in
'
••
exceptionally
strong. At. current levels these
bonds appear decidedly attractive.
Manitobas
were
recovered
Saskatchewans
from
low levels, and Al-
their recent
bertas continued in strong
demand
together with. Montreals. Alberta
4h>s and Montreal 4% s of 1971
Mr. William L.
bid at 82 and 95 Vz, respec¬
standpoint of activity,
the secondary carrier obligations
are finding good
support accord¬
a
Insurance companies continue
:
partial to
some
continue to pick
bonds
more
in
issues v continued
Internal
but
have the world's low¬
In
est-cost
raw
producer of most of the
materials necessary to mod¬
ture
difficult to avoid overoptimism.
scratched,
just
only
has
surface
and
difficult
last
ex¬
removal
the
a
tariffs, and the
common
be
an
for
our
restoration of
currency:
unit, it will'
and profitable task
financial interests, and a
great contribution to the welfare
Turning to current affairs, it
interesting to note that the
Bank of Canada has just lowered
:
is
chartered or
banks
from 2Vz%
to
Mr. Graham Towers, Gov¬
of the bank, stated that the
savings
1
designed to assure the
Dominion that the central bank's
low-interest policy would be con¬
step
was
sign of con¬
Government bond
market in Canada which recently
is also a
tinued.
,v
It
fidence
in' the
on
prearranged
pretty much
National Terminal Corp.
are
interest
m
securities.
There
that
the
Invest in
7
.
V^.77
The New York Stock Exchange
has announced the following firm
changes:
Guy V. Gurney retired from
partnership in Slaughter, Home
& Co., New York City, on Feb. 4.
"
been
to
this
consideration
stock
continu¬
ally attractive.
the
late
James
H.
stock
on
to
common
dividend basis.
a
are
that
realize
now
beginning
warehousing is
American
to
follows:
"(1) The rental cost for space
the storage charge
per
unit
may .be and usually is less in
of
Public
Merchandise
Warehouses
house.
floor of the
Exchange for Daniel
A.
the firm's
Lindley,
member.
-
,
the costs of
a
private
ware¬
"(2) The rental
in
or storage rate
Merchandise Ware¬
Public
a
house
includes
rent, heat, light
service, for all of
which the warehouse company is
and
elevator
Exchange responsible.
"(3) Public Merchandise Ware¬
,
Victory
\V7~7 77. 777 :'
71-
are
warehouses
more
'
supplied
the mobiliza¬
the
to
be
of
people's savings against
insidious
hut
none
the less
inflation. Thus millions of
advised by a worthy and highly-
enemy —
and women,
of their fellow-countrymen who
group
Assurance, withhold their savings from
"sell" Life
luxury market and set them aside to secure
protection and well-being for themselves and their
loved
in the unknown
ones
In the past year
days to
come.
alone, the million policy¬
holders of the Sun Life of Canada have set aside
$ 112 millions of their savings in
Assurance
the form of Life
premiums.
During the
war years
there has been
increase in the basic service rendered
a
marked
by Life Assur¬
ance—personal and family protection in the time
of greatest
need. The Sun Life of Canada, since
September 1939, has paid out 365 million dollars
to
policyholders
and
beneficiaries,
FROM THE 1043
really signifi¬
ANNUAL REPORT
a
cant
to
contribution
the
likely than pri¬
construction,
fire-resis¬
tant,
equipped
with
sprinkler
systems,
well
illuminated
and
77
men
trained
houses rather than private ware¬
house space may be summed up
John G. Bates, partner
in Bates
& Lindley, New York City, died
on February 2nd.
Mr. Bates had
been acting as alternate on the
the
devastating
Warehousemen's
"The points in favor of the use
Public
Merchandise
Ware¬
ceased
February 3rd, 1944.
these urgent times is
tion of the
an
integral part of modern merchan¬
dising.
We quote from a survey
by John H. Frederick, Ph. D., for
of
distinctive services
performed by Life Assurance in
With
earnings of approximately
$2.00 per share, the talked of div¬
idend basis of from 500 to $1.00
per
share appears conservative,
Investors
One of the many
feel
net
than
on
contribution
and Post-Wat
Wait Etiort
directors
indicated, place the
Carter in Carter & Co., New York,
V .7.7
the
dividend
make
Policyholders' savings important
the; call of the bonds,
will, as has
upon
vate-
:
on
for
FIGHTS INFLATION
accruing
reason
modern
7 '*
made
able
should
common.
every
Association, of which National
Terminals Corporation is a lead¬
ing member:
Exchange
Weekly Firm Changes
of
theoretical
is
new
the
N. Y. Stock
interest
in
houses
'.V
studies
on
and to become
outstanding factor in modern
warehousing.
The income avail¬
an
nual
as
of both countries.
ernor
indications that at
definite
a
Canadian
easy
its rediscount rate to
are
wartime
of
restrictions, the gradual lowering
of
a
admirable
in
commercial banks
the
taking
penditures are necessary for fur¬
ther development.
With
now
weathered
has
period
and there
been
capital
huge
market
fu¬
fashion, the tone is now strong,
the
nevertheless,
possible
developments, it is
considering
The
industry. Although the Do¬
minion's production is already on
ern
scale,
persistently,
schedule, being disinclined to bid
the market up against themselves.
share
our
large
based
Great Lakes Area
their
up
less
or
earnings to the
a
or
of the good, but
selves
Production
we
rectly
mental
buyers of selected descriptions;
Meanwhile the railroads them¬
that
Canada
mar¬
indirectly by govern¬
agencies, both the im¬
mediate and long term outlook is
most
encouraging.
In this re¬
ing to market observers in a posi¬
spect
it
is
contemplated
that,
tion to note what is going on.
from
quiet demand, but there was lit¬
Vice-Chairman of the War
mained at 10% discount.
It is
Board, recently stated
cheaply-produced natural increasingly apparent that the in¬
ternal issues are beginning to be
resources are approaching an end,
and some of them are now at that compared favorably with similar
external bonds, and an extension
point. Therefore, new sources of
of buying in this section is to be
supply must be found. We do not
have to look far afield, for in expected.
Batt,
backbone of the
ket
(Continued from page 603)
rate of approximately $1.75
per share annually.
The current
tle change in the Canadian dollar
reserve for depreciation approxi¬
in the "free" market, which re¬ mates
an
additional
$1.00
per
-;
■
ling anp storing his merchandise, ated, National Terminals
Cor¬
as their costs are covered by the
poration, with its small capitali¬
warehoiike quotations."
zation of only 179,979 shares com¬
Support For Rails
While at present much of the mon stock appears in a position
While reorganization rail liens
expand substantially in the
available space is used either di¬ to
are still the
lesser^ liens of the carriers and.
British Colum¬
Nova-Scotias
and
N e w lare said to; show up as sizable
Br uns wicks.
were
$38,000,000 of new first mort¬
bonds and 40,000 shares of
preferred.
gage
in
prices
tively..
minion continue and extend.
•Not
have
forecasts
amply justified. Direct Dominions
There
of office ih 1945.
the
During the past week, the mar¬
ket here -has also taken a definite
confident
"
after
and
strong
a
■
turn for the better and our most
ation of the Government's term
affairs
developed
healthy tone.
and
importance
federal
normal
has
just
has
absence
the
major
be
doubt
political
subsided,
now
Prime
an
of
wave
Canada's
has
stated
;
advanced
recent
future
:
controls, is
in its post¬
planning.
war
accuracy the cost of hand¬
of
wartime
stability of
national
life
in
family
time
of
New Assurances
....
Assurances in force
Benefits Paid
1943
$ ' 214,292,030
3,173,417,467
.74,057,495
Benefits Paid since
Organization
1,629,863,441
emergency.
with
proper
conveying
stacking machinery.
"(4) Insurance rates on mer¬
and
BUY Fourth War Loan BONDS
chandise
are
lower
in
Public
Copy of the Annual Report for 1943 may be
obtained from:
Merchandise Warehouses because
of
improved fire-proof construc¬
There is, moreover, no cost
tion.
Taylor, Deale
&
Company
to the manufacturer for insurance
on
the
building, other than that
included in the rental.
64 WALL
■
STREET, NEW YORK 5
WHitehall 3-1874
"(5) Public Merchandise Ware¬
houses
with
which
invariably
are
their
is
own
not
provided
railroad
sidings,
always possible for
Sun Life of Canada,
Transportation Building, Washington, D.C.
Program
tax rates,
matters: are
im¬
t
"2.
on.
so
these
of
All
a.
deserve careful
consideration. Were the situation
less grave, they would constitute
and all
portant,
taxes
Taxes
c.
The
individual
in¬
asked
transfers
all
death
gift taxes to the states; and
also
'•
and boats
*
business
as
by both jurisdictions,
but
the Federal tax would be limited
kind of tax
now imposed
insurance, that is, a
flat rate tax on gross individual
the
to
old
for
age
It should be
income.
.
local
of
Individual incomes could be
taxed
automobiles
b. Miscellaneous
taxation
all
such.
the use tax on
reve¬
collected at
in the greatest degree pos¬
source
nues
sible.
State aids and
c.
It
sort
and
vehi¬
and motor
taxes
property tax, a field
now
being entered by the
Federal
government
via
*
to
this
The
a.
ex¬
and the states would be
give up their taxes of
ment,
Local Revenue Sources
"3.
sales and
cise taxes to the Federal govern¬
at
Gasoline
cle
here
offered
program
transfer all
would
be desired
d.
inade¬
collectively
and
including
"business net in¬
proportional or
progressive rates as may
system
singly
quate.
'
grants
'
the
This program was devised as an Federal government in the above
writer has, by taking a good long
answer
to the alarming concen¬ scheme
possess
the
following
look at John Marshall's famous
tration of fiscal power in Wash¬ characteristics:
dictum, so often quoted and as
In the writer's opinion,
1. Productivity.
often disregarded—'"The power to ington.
The
general
tendency
offers far more sales tax and the tax on gross
tax involves the
power to de¬ that
serious threat to our institutions individual
incomes
would
be
stroy." Taxation can involve, or
and our liberties than any concen¬ much less affected
be so used, as to result in destruc¬
by variations
tration of economic
power, al¬ in economic
tion.
Observation suggests and
activity than are the
experience confirms that this is a though the latter subject is of taxes on business and individual
perennial
interest to
Congres¬ net incomes which now constitute
profound truth. No argument is
sional committees, to the Depart¬ so
required to demonstrate the fu¬
large a feature of the Federal
ment of Justice, and to the dem¬
tax program.
The taxes recom¬
tility
of destruction, hence it
It is possible to correct mended for Federal use will pro¬
should be unnecessary to produce agogue.
undesirable economic concentra¬ duce
their
revenue
currently,
weighty evidence to establish the
undesirability of destructive taxa¬ tion by economic means, but there with little lag between levy and
will be no way of breaking the collection. The current tax
tion.
pay¬
grip of fiscal despotism in Wash¬ ment act of 1942 was an attempt
Yet, despite the conclusion to
ington once it has acquired firm to place the individual income tax
which logic and reason lead, tax¬
hold.
on a current basis, but it has in¬
ation has become destructive at
Shortly before the publication volved such serious complications,
many points and in many ways.
of the paper quoted
above, an both of administration and of
This has not been altogether ac¬
should begin, as the
The reader
cidental, for there is more than a
evidence
of |> destructive
intention in various quarters.
little
might be
tried to prevent destructive uses
i of the taxing power. Indeed, it
might be supposed that an en¬
methods
Different
tSization ViewobinrS6
tralization
viewpoint
naa
The revenues suggested for
beeri
peen
by a high Federal official.
Although he spoke in his individ¬
ual capacity, as Federal officials
always do, the views expressed
were not repugnant to many: who
are influential in shaping national
given
compliance, as -to produce resistgrave
discontent
discontent anrl resist
and
taxnawr
taxpayer
Any scheme to collect cur¬
ance.
rently,
sive
results.
Regularity and stability of the
Federal
revenues
'
stands
Few
persons
by
ferently
alone.
virtually
would stand indif¬
while another was
being beaten or robbed by thugs.
Yet, great numbers of persons not
only stand by, but give active sup¬
port, while others lose their prop¬
erty or their business under crush¬
ing taxation, or while their pockets
being picked by a confiscatory
tax.
The situation that will ob¬
tain under the 1944 tax law, as
are
by
passed
the
statement.
this
Senate,
confirms
More than
100%
large incomes is to be taken
of all
in taxes. And not as
$24,000 can be left out
of any income after taxes.
Only
when those who are not affected
this
year
much
by
as
as
particular tax are as ready
a
those who must pay it to pro¬
excessive rates or
inequitable
tax
treatment
can
general civic enlightenment be
depended upon to prevent eco¬
nomic destruction through taxa¬
test
against
tion.
While this kind of restraint
be the ultimate goal, it is
beyond question a long way off.
In the meantime, a practical way
may
of
preventing the destructive use
the vari¬
ous taxes so as to provide wher¬
ever possible an automatic check
of taxation is to arrange
upon
abuse.
Some time ago,
lined
taxes
local
a
among
the writer out¬
of distribution of
Federal, state and
plan*
,
governrrlents which
appears
to offer the maximum
of
possibilities
restraint upon the
automatic
beneficial condition.
period, we must adopt
2. Universal Distribution.
The
a progressive tax system bearing
Federal
government
exists
to
heavily upon savings concentrated
serve all of the people,
and all
in creditor areas and lightly upon
parts of the country. It is both
the great mass of families in the
logical and just that the cost of
low income groups.
This means
services intended to benefit all
that we must get rid of, or at
citizens and all sections be met by
least check the growth of the sort
Federal taxes which are borne in
of taxes to which our States have
some degree by all citizens.
The
unfortunately been forced to re¬
populous creditor
areas
would
sort
more
and more in recent
continue, as under the present
years. I am referring to the gen¬
Federal tax methods, to contribute
the defense
eral sales taxes and the taxes on
planners
plan, aside
and
the bulk of the Federal revenues,
from infla¬
tion, Ts by the ;creation of, new
large mass production industries.
No new large-scale mass pro¬
duction industry can arise in this
country under the
progressive tax
the > tax would
absorb the funds required for ex¬
pansion while they would destroy
all incentive to do so.
Progres¬
sive taxation is the most powerful
instrument
for
the
peaceful
achievement of the socialist state,
and this purpose constitutes the
only valid argument in its sup*
port. When a future Edward Gib¬
bon "shall write the history of the
decline and fall of the American
Republic, the date he will use to
mark the beginning of that de¬
cline will be March 1, 1913. On
that date, the people sanctioned
Federal taxation of incomes with
no
thought of restraint upon the
abuse of this method, or of the
evils that would be produced by
because
system,
.
abuse.
4. Elimination of
the
In
vocabulary
Federal Waste.
of deficit fi¬
nancing there is no such term as
spending."" When gov¬
fiscal
"Wasteful
ernment sets out to use its
processes to
omy,
maniplate the econ¬
to redistribute wealth, or to
the good life to all citizens,
assure
the
criteria
ordinary
of
sound
budgeting
are
discarded.
The
quantity
of
public, spending,
rather than
the utility of the
spending to the economic system,
becomes the principal, if not the
sole, standard. When the fiscal
objective is the sheer quantity of
spending, no amount of camou¬
flage under the terms "public
or
"public asset" can
the fact that enormous
only probable, but
disguise
wijl be 'highly
lightened citizenry would be, in policy. The following passage! Is
important in Federal budgetary
'itself, a sufficient safeguard. But quoted from the address in ques¬
calculations, if artd when the peo¬
•'
such is the reaction, or rather
tion:
•
ple recover from the fiscal de¬
the lack of reaction, of human na¬
"If we are to be successful in mentia that was
responsible for
ture to taxation that reliance on the objective of creating a high
the
illusion
that
a
perpetual
sheer enlightenment may be at
and
steadily increasing demand deficit is the best evidence of a
times misplaced.
In this respect for the
products of industry after
taxation
ernment, except to provide them
national
expanding, dynamic
the high level of
income for which the
the
achieve
rates
these
of ef¬
way
fluence, against thq. Federal gov¬
tax imposed at progres¬
is certain to produce investment"
a
other
no
The only way to
economy
complete control of the
German people, Hitler wiped out
such independent authority as the
German states possessed.
is
There
•
fectively restoring the states to a
sive income tax.
taxes,
on
comes,
reality, they are merely
essential preliminaries. The sys¬
tem of free
enterprise and the
But, in
of democratic control of
the purse, alike face a most seri¬
ous threat.
It is the threat of de¬
struction through taxation.
It is
this danger which compels the
conclusion that the various steps
mentioned
above,
all desirable
and all in the right direction, are
on
freedoms
tak¬
no account whatever of the
destructive effects of the progres¬
ing
toward
social
come
reasonably acceptable program.
a
Business
American
prise is that the planners are
disappear. It will be re¬
membered that early in his march
Death taxes
b.
them,
would
Payroll i taxes f, for
security benefits
State Revenue Sources
and
income
individual
of
bulwark
e.
of
modification
taxation,
gains
obtain
to
both the historical and the actual
(Continued from first page)
.
order
in
eying
A Post-War Tax
Thursday, February 10, 1944
COMMERCIAL & FINANCIAL CHRONICLE
THE
608
position of proper balance and in¬
with
larger
has been quite
nors
of financial
ment
such
of
revenue
domi¬
resources,
it
correspondingly waste¬
ful and imprudent. It is too far
removed from the people to en¬
able them to have definite knowl¬
has become
edge of these wastes, or to be
capable of exercising an effective
curb upon them. Even with the
best
the
intentions
ganization
makes
Decentralization
of
for
ed
a
than is possible under the
"take"
present situation. The plan pro¬
posed here is calculated to ac¬
complish that result.
Restoration
2.
terprise.
for
given
reason
of
Private
En¬
stagnation of pri¬
was
the principal
The
business
vate
large-scale
the
deficit spending that was under¬
taken
some
years
to relieve
ago
unemployment. It is now a matter
of history that the course of gov¬
ernment
policy during those years
shaped With a view to the
speediest absorption of workers
into private jobs.
Rather, that
policy was aimed at a perpetua¬
tion of government, support, with
little regard to the establishment
of the conditions under which pri¬
vate enterprise could resume its
normal
role
of
the
principal
source
of economic opportunity.
Changes of governmental policy at
points other than taxation will be
required if the enterprise system
is to be revitalized, but the tax
relief that would be supplied by
the above program would be an
enormously encouraging move in
the right direction.
was
not
Equalization between Debtor
3.
the
Under
Areas.
Creditor
and
program
proposed here,
there
would emerge a certain degree of
competition among the states to
business
and
residents.
and
through
adjustments, such
competition may be regarded as
wholly desirable. It would be the
most .effective
way
of dealing
with the condition complained of
expressed
as
the form of tax
Mr. Eccles, namely, the dis¬
parities of wealth, income and
business
activity,
as
between
by
debtor
and
creditor
areas.
The
present approach to this problem,
which is Federal taxation of the
creditor
waste.
power
tive to correct the differences
to
for
fiscal
adequately performs
Smaller over-all tax
ment can be
to provide funds for
of the debtor areas, is
wrong in principle and futile in
practice. It perpetuates the dis¬
parity since it provides no incen¬
economize,
sheer size of the Federal or¬
of
Under
powers.
realignment, the necessary
services of all levels of govern^
a
When
nation
realign¬
get nowhere except by a
attract
has moved toward absolute
aggressive in
emphasis upon the theme of
states' rights, but it should be
clear that such a movement will
inevitable.
gone the concentration of fiscal
waste. As the Federal government
are
its
Wastes are not
Paralleling the concentration»of
fiscal power in Washington has
which
revenues
entirely within their own control.
The Conference of State Gover¬
compel the introduction of a
new and higher standard of val¬
ues
in the Federal spending. It
will restore to effective operation
will
areas
the Support
now
existing in the geographical dis¬
tribution of wealth, industry and
it will not be
population.
It
thus
creates
a
strong case for continuing and
principle that the
people extending the vicious circle of
should support the government
heavy Federal taxes, demoralized ?
instead of being supported by it. state
revenues, greater state aid,
The automatic restraint upon heavier Federal
taxation, and so
excessive Federal
taxation that on.
the present system
would thus be
gasoline, tobacco, and other
cles of mass consumption. .
arti¬
.
.
but
there would be a wholesome
diffusion of the Federal tax
load
progressive that is impossible under the ex¬
major element of our isting system.
national tax structure, however,
The
rate of withholding tax
"If
are
we
taxes
to make
the
possible to continue on individual income payments
of having both might be used as the flexible
the States and the Federal gov¬ factor in Federal budgeting. That
ernment levy taxes on corporate
is, this rate could be adjusted
and individual incomes and trans¬
fers at death.
.
.
In the end the
only thoroughgoing cure for these
difficulties lies in a drastic re¬
of
allocation
taxing
powers
tween the States and the
government.
would
«
be¬
Federal
Such an allocation
restricting
the
involve
right to levy taxes on income,
gifts and bequests wholly to the
Federal government. I know how
controversial this subject is but I
think we will have to face, quite
frankly, the implication that State
revenues
and
will tend to consist more
more
which
order
and of grants
to
the
of
produce
revenue
as
the
required in
remainder
needed,
above
3.
of
General popular
Elimination of the Excesses
Progressive
Taxation.
Pro¬
government, gressive taxation of incomes and
estates at the rates now found in
already make up about 14
the
provided is clearly
support
for Federal policies would be se¬
cured only
in so far as these
policies clearly served the na¬
tional, rather than some sectional
or
group, interest.
After all, the
national government was estab¬
lished: to serve and promote the
national interest. When it is again
evident.
balance the
budget. Since such a tax would
reach every corner of the nation,
changes in its rate would* immedi¬
restricted to this sphere, its budg¬
ately apprise every voter of the
et can be reduced and the state
significance of the spending poli¬
and cities will have both greater
cies being proposed or undertaken
resources and greater opportunity
in Washington, and there would
to look after their own affairs.
thus be provided an acid test of
This brings up the advantages
whether or not these policies were
of the arrangement of revenues
being approved.
proposed above for the states.
other tax receipts, to
Of taxes shared with the
Federal government
from
from year to year
the
Federal
1.
Preservation of the States as
Integral
Union.
Members of a Federal
division of revenues
The
Business taxes
are
generally
re¬
garded as a minor factor among
the causes of industrial migration.
This is the more likely to be true
while
the
same
heavy Federal
taxes on business must be paid
regardless of location. Once this
burden
were
removed,
as
it would
be under the plan offered
here, a
adequate test would be pro¬
vided of the capacity of the South,
more
the
West, for example, to at¬
capital or residents
with money to
spend.
Such a
prospect would not appeal to the
states of the North and East, and
many
can
still recall the fight
made by New York against the
Florida policy of no inheritance
or
tract business
tax.
But
well
to
these
bear
the Eccles
in
state?
mind
would
do
that under
program, they face the
laws can have only suggested here will improve state
prospect of being taxed to provide
revenues. As this occurs, they will
namely, the destruc¬
become less dependent upon, even the subsidies that will be sent by
proposal is as
tion of the private enterprise sys¬
the Federal government into the
tem and of the economic liberties wholly independent of, the Fed¬
"1. Federal Revenue Sources
In so
eral
treasury.,:; Raids upon that "under-privileged" states.
a. The customs
would
eventually
destroy
the which are dependent for survival
far as the variations of state tax
that system.
The present treasury, now so popular and so
b. Excise taxes on commodi¬ states as independent and equal upon
fruitful for the enterprising poli¬ policy were to result in attracting
ties
members
of
a
Federal
union. Federal tax system has "frozen"
business or residents with money
tician, will cease. State prestige
c.
General Sales Taxes
With the reduction of the states the economic order at its current
will be restored, state morale will to spend or invest, the geograph¬
d. A flat rate tax on individ¬ to a dependency status, limited stage of development,
be revived, and the pretense of a ical unbalance which now affords
The crowning irony of all post¬
ual gross incomes collected for their funds to grants from the
Federal obligation to provide aid ground for complaint would be
Federal treasury, and obliged to war planning for full employment
at source
in the greatest
removed.
will disappear.
resort to begging or political jock- and the restoration of free enter¬
degree possible
abuse
and
the
destructive
the taxing power.
use
of
In outline, this
follows:
cent of States revenues. . .
above passage states the
recent trend very well, and were
that
trend
to
be continued,
it
per
The
Federal
one
tax
result,
Volume
-
In
this
states
competition among the
would be provided
taxation
tion.
in
check
the
While
or -sec¬
disap¬
progressive
of
taxation! because there is
of
because
socialist
no way
he
objection
to relegating this method to state
use, since the competition of other
states would provide an effective
and well-nigh automatic check on
abuse. In the same way, no state
would
/
the
to
way
have
state,
serious
no
energy.
The next day he
able for long to engage
excessive - or abusive taxation
of
>
?
business.
The
•
•-
*
tendency of the
lunch while this
to
to
riers
has
fostered
doubt been
no
income
death
and
taxes.
little opportunity to attract either
business or residents.
Therefore,
their
inclination
outsiders
is
from-
to
>
doing
within the state
and
prevent
business
from
tend
■
create .^ari ^unfavorable-
balance of payments,
•
•
•_
The best cure;
residents.
;:■/////£■!/;'/.//f /'•// //
wrong;
In
far
of
and
ness
domiciles
that he
tates, there would be
business
or
es¬
equali¬
an
standing features of his offering, he selected a few main selling points
and used them sparingly and with restraint. He began to sell with
his head instead of his mouth.
He discovered what his customers
wanted out of life as well as from their investments. "He made
friends and he built his clientele on the basis of service. Today most
of his business is on an advisory basis—he doesn't have to see how
zation between debtor and credi¬
This equalization would
been accomplished through
tor areas.
have
the
forces of private economic
activity and not by the bureau¬
cratic methods of Federal control
and
"
the water's of
mandate and
Federal
a
Federal subsidy.
An
is that
a
5% mark-up on his sales
But
so
a
few
because of
cases
of clientele gives him too small a commission on a fifty per¬
to justify the work, study, and time he gives to his
business.
He knows that if the profit in the securities business
becomes too small to make it worth his while he will take his
valuable talents and offer them to someone who could use them
in another line of business. He also knows that other capable sales-,
men in the securities business will do .the same.
He knows that if
they do this it will be only a question of time until many of the
smaller dealers in this country will be out of business and difficulty
will be encountered in raising the new capital which is going to be
necessary
in
needed
to finance all the new businesses that are going
order TO CREATE FULL
EMPLOYMENT IN
COUNTRY AFTER THE WAR.
receipts for current purposes, and
direct
that the
govern¬
debt to the fund be offset
should
Therefore, a much smaller
Federal budget will be required
than would be necessary if the
ment's
by
reduction of debt privately
a
.
with its volumes of rulings, regu¬
On the foregoing assumptions, a
decisions, could all be Federal budget of $15 billions
scrapped. Such virtue as the in¬ should be an outside figure. The
come tax may once have had, in
following figures are suggestive
principle, has now disappeared in of what its main subdivisions
a
fog of incomprehensible lan¬
might be: :" . .
1
-' . guage.
There would be no tax¬
1. Interest on the public debt—
payer headaches over forms or
$5-6 billion
'
returns, no worry about where to
2. The post-war defense estab¬
find the money on tax payment
lishment—$5 billion
dates.
The proposed Federal tax
3. The civil departments—$3 bil¬
system would be built upon the lion
principles of certainty and con¬
4. Debt retirement—$1 billion
lations and
,
,
„
structure and
streamlined
a
Fed¬
eral administration that could
smaller,
and
as
Adam
Smith
pointed out, these are equal, if
not
superior, in importance; to
equality of taxation.
The
'
efficient
less
to
because
do.
it
proposed
would
be
is
It
and
taxation
vigor
the
that
can
will
and growth.
choice
the
the
also
be
have
allocation
of
choice
stimulate
Finally, it is
between " supporting
government
and
being
sup¬
ported by it.
fol¬
1.
The proposecLplan
will stim¬
production and employment,
thereby affording prospect of the
high
level national income
which all planners ask;.,2/ The
for
activity that
would be engendered by the relief
.from Federal taxes and other in¬
terferences
national
will
make possible
income
of
at
least
a
$125
billions;'
3.
Given
high
level
general
prosnerity, there will be no need
for Federal aid expenditures for
Tax
on
individual
incomes
5%§—$5 billions
Total revenues—$14.5-15.5
at
bil¬
social
transactions
this
now
Tax
Chapter
security trust
fund
of
would be outside
arrangement/ As this system
operates, large revenues are
produced in excess of benefit pay¬
ments.
Since the investment of
this excess
necessarily involves
the creation of a debt owed by
the Treasury to
should
the fund, the law
forbid use
"A
Tax
of the excess
Institute,
VII.
on
Gross
Income
of
1941,
1-2,
used
by
by
men
and
,
women now
~
in service, to our
present em-
stockholders.
our
.
!
'
During 1943 $10,000,000 was deposited in a Fund for De¬
ferred Expenditure to meet the unusual
contingent obligations
created by war, to care for
capital expenditures which would
have been made during the war years if it had not been for war
conditions, and to help finance necessary post-war develop¬
ments.
Part of this Fund is intended for the peacetime expansion we
believe
men
probable, and will help provide employment for
and
w omen now
our
in the armed services when
they return.
In such expansion will lie the future
opportunities for all of us.
'
-
We know that
all
our
and
obligations can be met only by devoting
intelligence to keeping our company sound
our
abilities and
healthy, and by anticipating and preparing for the future.
We
publish below highlights of our annual statement
the progress ire have made in 1943.
/
report on
.
Total Income
For all
$10713 million
(except those shown below)
To
as a
...
costs
$ 48
million
employees for salaries
and wages
$ 4&H million
Tax
the
j
Remarks before the
in
Annual
336.
p.
4c/. H. L. Lutz, "Progressive Taxation,"
The Tax Review, May, 1943.
§This rate should be adjustable
point
a
which
year
would
by
assure
budgetary balance.
The
ments
CHRONICLE
on
invites
Lutz
any
related phases of the subject
should
discussion,
be
Co
addressed
m me n
to
t s
Editor,
Commercial and Finahcial Chron¬
icle. 25 Spruce
N. Y.
■
.
$
Leaving in the business
2
2H million
★
Wages and salaries in 1943 were 17% greater than in
Employees numbered 14,100 or 1,100 less than
the year before.
1942.
Taxes
stock
★
or
were
equivalent
$817.64 per
Earnings after
to $13,56 per
share of common
employee.
taxes w ere 4H cents per
dollar of total
income, compared to 5 cents last year.
★
Dividends of $7.00 per
ferred stock and $2.25
per
share
share
Army-Navy "E" awards
N. J., and
award
was
paid on the pre¬
the common stock.
were
on
were made at
Lompoc, Calif., factories and
made
at
our
a
Manville,
seeond "E"
the K ansas Ordnance Plant built and
operated for the War Department by Johns-Manville.
★
More than
a
thousand
our war
are now
products manufactured by
our armed forces and
serving
industries.
Johns-Manville will continue to focus all its energies on the
production of war materials needed by our fighting forces, and
repeats its pledge that—when peace is won—we again will
produce more and better things for the kind of better living
for which our country is
fighting. /
/; /.
com¬
the views expressed by
in
this article, or on
Dr.
under
million
$
Proceed-
Thirty'Fourth
Conference, 1941, at
at
/dividends
Johns-Manville
Association,
$ 11M million
for taxes
To stockholders in
per-
...
National
ings
conducted
Dec.
Extracts
•fMarriner S. Eccles,
year
lions.
The
business
Manville
ployees and to
★
War, A Symposium
mission.
/<
Excise taxes—$3 billions
ulate
Lutz,
the
/
of
tions:
L.
The
the
the »Federal lows:
'
budget should be anticipated by
Federal retail sales tax at 10%
offering
some
approximations, —$6-7 billions./;/
based on the following assump¬ / Customs—$.5 billions
question
■"H.
taxes
as
.
problems will be difficult. Weat Johns-Manville are
facing these problems squarely, w ith full recognition of our
responsibilities and our obligations to the public, to the Johns-
destroy
Payments to Individuals," in Financing
approximately
v
.
The
more
would
between taxation that
Total—$14-15 billion.
The Federal revenues under
to the
heed.
★
compact and
more
,
venience
task of
converting our factories from w ar
making of the many things we want and
enormous
To government
subsidies;
state
to be
THIS
the American
to
.
held.
of the
which Federal government were to fi¬
The
choice that is presented
might be urged against it is that nance and support the whole here is one between continuance
the present complicated tax law,
economy.' • ■;/
// of the present top-heavy Federal
as to offset many
drawbacks and objections
great
'*
to
Victory will he hard and long. We must con-,
supply our armed forces w ith everything they need.
some
day peace will come and American industry will
production
basis
4.
plan
in quite
his type
cent
agriculture, for
maintained
or for relief;
in This
advantage
speaker and become a spell-binder to make a sale.
P.S.-r-There is only one thing that really bothers him and that
stirred
been
again, and the familiar, thread¬
bare charges of monopoly against
Eastern money interests, railroad
conspiracy, etc., have been drag¬
ged out. The New York "Times"
i of Jan. 23, 1944,. carried a United
Press
dispatch^ reporting
that
special congressional committees
were
being planned to discuss
how to regionalize. industry and
distribute
the
country's wealth
more evenly.
It goes without say¬
ing that as long, as the present
Federal taxes continue, any ma¬
terial regionalization of industry
will
be
accomplished only by
by
calls he can make in a day, he doesn't find a lot of imaginary
ills in his job or his firm, and he doesn't have to turn on a loud¬
many
subsidy.
In recent weeks,
sectionalism "have
■//
to
face the
figured out if these fellows could make a living out of the
doing things their way, that if he couldn't do as well or
better, he had better retire from active business life of any kind/,
He developed a sales technique of his own.
Instead of boiling
a sales talk down into a monotonous recitation of the various out¬
those
of
having substantial incomes
*
;
'
The road
got him, I can tell that his business is in the bag." ' Whether or not
he meant that he had the business, or had given the unhappy re¬
ri¬
known
now
tinue
.
this
as
operation
'W//'/■/
year
industry is doing its wartime job is
public. They know that
during 1943 production miracles were performed to make our
fighting men the best equipped in the world.
for this paralyz-'
so
second full
TTOW well American
XX
prospect's door and say to the new salesman, "Boy, I've
outside the
valry ;were;to Tesult In; a: better
geographical distribution of busi¬
'
was
our
of wartime
how not
on
cipient of his monotonous monologue THE BUSINESS, we leave to
you to decide.
ing provincialism is to introduce
With such an inauspicious start as this we asked our friend how
ia healthy rivalry among the states
he ever had the nerve to go ahead and learn the rudiments of selling
in attracting both business; and
which has made him a successful producer today.
His reply was
i
•
to
business.
pect's office and proceed to talk, talk and talk until something hap¬
pened. He ground away like a perpetual phonograph.
Point after
point he monotously hammered into his victim's rapidly approaching
unconsciousness.
After leaving such an interview he would get
draw¬
ing
income, out of the state by
such business.- They have sought*
-as naturally as
have nations, to
limit those forms of trade which
discourse
The house
salesman listened to a long
spending the day with this encouraging character.
.
>
The third day was the day; our new salesman really got his
education in what not to do to make a success in the securities busi¬
ness.
This day he went out with a superannuated old gentleman
who believed that the way ; to sell securities was to get into a pros¬
Under these taxes the states have
.■»
Highlights of
people who bought securities wanted something for nothing;
the average investor was a dumb-bell who just wanted someone
to come along and promise him the impossible; the whole business
N G. etc.
You can imagine what a good start our friend received
by the deadening effects of heavy
Federal
JGHNS-MANVILLE
r
■
They spent two hours at
morning.
successful in the securities
be
Report to the Public by
most
V erect foolish interstate trade bar¬
■
"
,
went out with another salesman. This fellow
where a check was waiting for him which
picked up and called it a
he
<
states
•
.
,
A
took him into an office
would be
in
Direct Sales Presentations
friend of ours broke into the securities
business and this is the way he got his training.
The salesmanager
told him to go out with one of the salesmen and make calls.
The
first day, he told us, he accompanied a salesman who made a fetish
of trying to see how many- calls he could make in a day.
They
rushed from one office to another in downtown New York and the
net result of the day's work was that he ended up a pretty tired
boy with little to show for the entire effort but a waste of glandular
few years ago a
Some
gross
abuse and
it is the shortest-
preventing
hence
-
A Few Observations On
writer
entirely
proves
excessive
on
locality
any
609
The Securities Salesman's Coinei
there
automatic
an
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4254
159
St., New York (8),
,,/.../ /
/
PRESIDENT, JOHNS-MANVILLE CORPORATION
THE
610
Thursday, February 10, 1944
COMMERCIAL & FINANCIAL CHRONICLE
The second invasion
of the free¬
The New Deal admin¬
peculiarly resentful of
criticism.
Publishers, edi¬
the press.
utive
government.
of
branch
.beginning, the New
Deal sought to relegate Congress
Government
censorship.
This honest
to an inferior or subordinate po¬
week Mr. J.
Edgar Hoover re¬ tors, correspondents and sports
(Continued from page 594)
have
been
denounced. sition. The Congress, under this
fused to testify before a commit¬ writers
Let us now analyze the dangers tee of the House
of Represen¬ One newspaper man was told by program, delegated much policy¬
body dies for lack of food, the
making power to boards, bureaus
soul shrivels when it is deprived which re-challenge us to a defense tatives
according
to
his
own the President to put on a dunce
and commissions.
It abdicated in
of this sacred right for which men
To
of knowledge. The paramount in¬
statement, because of an order cap and sit in the corner.
favor of the Executive in many
have labored and died.
Our Bill from the President.
This is an another one, he awarded the Iron
terest in the freedom of the press
Tne Freedom Of The Press
is that America may
true
The
rests
on
remain free.
greatness of a nation
freedom for intellectual
combat.
From the days
on
of smoke signals
the hills to the miracle
of the
and radio, people
have
struggled ■ to communicate
information and ideas and to warn
modern
of
press
This everlasting urge
irresistible force has brought
danger.
and
of
is in the field of
dom of the press
Rights will not be overthrown
swoop, but its vitality
of
instance
censorship
by
istration is
and another he
Cross
the
From
chided for
the
These bureaus confuse
instances.
bad services.
They
build up power and tenaciously
President was
hold
onto
it.
They build - up
here and a
if he had any comment to make
support and range con¬
might seem inconsequential at the
on
the appeal of the Associated strong
moment,
perhaps even passing
His only reply was a stantly into new fields of author¬
We have had many instances of Press case.
ity.
They are arms of the legis¬
public notice. They very fact that
censorship of news in this coun¬ flippant question as to whether lative branch of the Government
human freedoms are guaranteed
"the
country club is still run¬
try which our allies have freely
at one fell
may
Executive Branch of the Govern¬
the Congress of
what might be vital information
in determining its war policy.
by a restriction
limitation there which
sapped
be
in the Constitution does
must
cently,
ment
not mean
depriving
Indeed,
published.
safe.
Every gener¬
fight to keep those
that they are
ation
asking "picayune"
ferences
Otherwise they will be
constantly . improved
techniques rights:.
of
communication.
They
will ground beneath the heel of tyr¬
continue to improve as long as anny.
What are the dangers of which
the mind and hand of men are
we
must
be
aware?
Insidious
free to think and work at the job.
The only apparent threat to this propaganda of the administration
world
our
by
enemies
to
the
-
1 -
/
•
and
good
but
orders
take
Many of them
utive.
the
from
.
Paralleling such actions every¬
Exec¬
because of
tentacles outreach the
of a servile Congress
them life.
The
first
amendment to the
Constitution of the United States,
where
their strong
the
authority
and con¬
allies while
our
the
all recall ning."
revealed
were
by
firmed
we
Cairo and Teheran con¬
that the
Re¬
asked
questions.
the
against the press has been
bureaucratic attempt to con¬
trol the
radio.^JRadio stations, be¬
which gave
.
channels, are
constantly under a life and death
threat and too often must submit about which we have been talk-:
ing, reads/;in part as follows:
to Government direction.
deny the right of government to
in
power
threatens freedom of
On May 10th of last year the "Congress shall make no law , . .
progress is the power of the gov¬
censor
military news in time of
the press and
contaminates the
Supreme Court
of the United abridging the freedom of speech,
ernment itself to stifle it in the
war, but we never will agree that
or
of the press
." But no¬
States in a five-to-two decision,
selfish interest of developing still very source of our information.
any department of the
Govern¬
where is the press so protected
Dr.
Henry Wriston, president ment has a vested interest in the written by Justice Frankfurter,
greater power.
;
of
Brown
..University,
recently news in war or in peace. That is placed in the hands of a Federal against the Executive authority
We need to accept that familiar
of this Government.
As the Ex¬
wrote: "Never in the history of the road down which the people agency—the Federal Communica¬
but profound teaching of Christ
branch
becomes
more
tions Commission—expansive con¬ ecutive
the United States has there been of
when he said: "And ye shall know
Germany, Italy and Japan were
and
the
Legislative
such a flood of governmental pub-? lead to slavery and ultimate de¬ trol of radio broadcasting in the powerful
the truth and the truth shall make
United
States.
The
decision branch less important, the danger
lications.
Never have so many feat.
you free."
And with that faith
which was expected to deal with to a free press is more and more
men
poured out so much infor¬
It is generally agreed that the
should go a great sense of respon¬
imminent.
The test of the Re¬
mation on the public.
Office of Censorship is organized the Commission's right to enforce
sibility.
The protection of free¬
rules as to contracts between sta¬ public's virtue lies not primarily
"Yet never in the history of free for the
dom of speech and freedom of the
purpose
of giving the
tions and networks went beyond in majority rule, but in the re¬
people unbiased and
press guaranteed in the Consti-: government have such enormous American
those
questions
and conferred spect shown for minority rights.'
undelayed news.
But on every
tution places a responsibility upon resources, such sweeping powers,
A free belief and the right of free
such vast operations been side it has been hampered and upon the Federal Communications
everyone to so speak and write, and
Commission
regulatory
power speech is the essential guarantee
that-,
constitutional
guarantees conducted under the, cloak of handicapped in spite of valiant
over
radio broadcasting, in the that those minority rights will be
That contrast between efforts of Mr. Byron Price, its
may
be justified and that the secrecy.
of program
content and respected. Never should the pow¬
The Office of War In¬ field
floods of costly irrelevant infor¬ Director.
people may be free.
'
erful
majority be permitted to
Yours is
a
stewardship abso¬ mation and concealment of facts formation, on the other hand, has business operation. This gives to
suppress the arguments of a mk
a bureau of the Federal Govern¬
lutely vital in peace, but it is in¬ is shocking. It is dangerous in a proved itself a propaganda agency.
If
ment complete power to dominate nority that disagrees with it.
The Congress of the United States
dispensable in war.
The line of democracy."
radio and restrict the freedom of free discussion and free publica¬
fortunately cut its appropriation
communication from war front to
The. present administration qt
In answer tion should ever be suppressed,
the
home front must -be
kept Washington believes that our na¬ for domestic use. Before that cut speech over the air.
to the contention that the Com¬ there would be no way of deter¬
open;
Domestic news must be tional life must be managed. It was made offices were being set
Under
mission was empowered to deal mining what is the truth.
unadulterated
by
propaganda. does not have faith in the good up in every community of the na¬
such conditions, truth would havej
Subordinate
employees, only with technical impediments
We
must not
give aid to - the judgment of the people. Nor does tion.
to the extent of larger and more no chance in the struggle with
enemy, but belief in the trust¬ it believe that they are able to even here in the city of Columbus,
error.
demanded the right.: to read and effective use of the radio, in the
worthiness of news is essential to
govern
themselves.
The New
So the spirit of freedom today
home front morale.
The cloak of Deal is committed to an all- censor information given out by opinion Justice Frankfurter said:
"We cannot find in the Act any cries out for intelligent leader¬
censorship must not be used to powerful bureaucracy.
Of the the Ohio Civilian Defense Coun¬ such restrictions of the Commis¬ ship from the press. If that lead-;
hide any weaknesses in the ad¬ many
agencies
created before cil.
ership falters, American liberty
sion's authority."
The
ministration of domestic, affairs Pearl Harbor, 26 of them em¬
public lias become dis¬
is in danger.
Political propa¬
I say to you tonight that if there
by our Government.
Such weak¬ ployed 4,500 publicity
agents trustful of the Office of War In¬
nesses
will
be
corrected
by costing the taxpayers $30,000,000 formation even in its foreign is no such restriction in the law, ganda must be destroyed as an
instrumentality
of
government.
service.
They are disgusted with it ought to be put into the law by
the power of public opinion if the j annually'
Today that publicity
We must insist that appropriate
the Congress of the United States.
lines of communication are kept cost
is between $90,000,000 and the petty quarreling and bicker¬
sources
of information be kept
Such unlimited power given to
open
and
the facts are fully $100,000,000
annually.
These ing of Director Davis and subor¬
dinate Sherwood.
The very weak¬ any Government board over our open to the press of the country.
known.
press
agents or so-called infor¬
communications system, even if Public information should never
There is something about this mation
experts have been charged ness of the program is shown
be restricted to the handout, offconstitutional
guarantee of let¬ with playing up administration when such a petty quarrel over not exercised, is within itself a
the-record and not for attribution
ting people decide their own des¬ activities, glossing over errors and who should hire and fire was threat to the free distribution of
methods.
News must be avails
tinies
by
free
discussion
and even concealing facts which might taken to the President of the news and the right to speak the
able and free to all alike as well
truth.
majority will which we should produce an undesirable reaction United States.
as the right to print the news.
Just a few days ago a Wash¬
Further evidence of unneces¬
carefully protect and keep.
Cen¬ on the part of the people. Many
I have read "Barriers Down," a
sorship could become the resort of those employed in government sary and inexcusable censorship ington bureau decided after many
of the scoundrel.
Censorship, like positions today look upon the was seen in the President's with¬ months of careful study that as presentation by Mr. Kent Cooper
in regard to freer dissemination
health restoring drugs, may be¬ press merely as a tool or instru¬ holding information from the pub¬ newspaper men you might be per¬
of news around the world.
I have
mitted to own a radio station if,
come rank poison when the dose
ment to serve the purposes of the lic until he could give it in an
the
bureau's
judgment,
it followed the thinking of Dean
address over the radio.
I refer to in
is too great.
administration.
' v
Ackerman and Mr. Hugh Bailey.
the appointment of General Eisen¬ suited the public interest, con¬
Freedom of speech and of the
One of the dangerous threats to
venience and
necessity.
There It may be millennial to propose
hower and coffee rationing.
press rest upon assumptions that freedom of the press is its use for
a
world free press, but peace,
The program of censorship is are seven members of that bureau
are basic to democratic, represen¬
propaganda purposes.
This may
may
seem
millennial.
and two of them have stood out likewise,
not limited to military affairs and
tative government. ' They are a ! be in the nature of trial balloons
They with
many
of you are
to the battle fronts.
The Inter¬ staunchly defending the kind of
part of our common belief that for
political
purposes
without
pioneers in this great cause. The
national Food Conference at Hot freedom that we have thought in
individual liberty and happiness sponsorship.
If something ought
cause
is noble and the goal
is
constitutional
are
the desires of all men, and to be said to the American people, Springs was a star-chamber meet¬ keeping with the
worthy.
May those who think
guarantees. If the radio is to ac¬
represent a profound faith that let a responsible public official ing about which the people of
and strive for a better tomorrow
this country were given only glit¬ tually be free, it must be free of
men
want to discover the truth say it in his own name.
It is a
be vigilant in a cause of a World
tering generalities.
The people's the blight and constant fear of
and
are
capable of exercising
people were still kept
in
childish
ignorance
by their
own Government.
No one would
American
.
of limited air
cause
.
.
.
■
.
„
.
'
•
violation
Men of all ages have be¬
reason.
lieved in the
ing'
power
Free
stimulating, cleans¬
of individual freedom.
discussion
political,
is
essential
to
economic
and
social
People cannot be mas¬
progress. ;■
ters of their
government
unless
they are permitted to talk freely
about what is on their minds and
Free
antidote for
violence and intelligence can con¬
to
affirm their convictions.
discussion is the best
quer
hysteria.
of
the
freedom
of the
to
matters
in
closed
were
reporter
official
or
paper
responsibility
is to
and
and
were
paper
lisher
the
can
conferences
pledged to secrecy as to any plans
that took place at that conference.
That charge has not been denied.
when our
control
and
cancel¬
Free Press!
only a reawakened
revitalized Congress stopped
Moreover,
had
If the nations of the world
been
will
responsive to the enlightened
of
the
majority of their
people, the world would be at
their life blood to Attorney General Biddle's at¬
peace.
But men and groups of
preserve freedom of speech, free¬ tempt to secure the enactment of distorted
minds, with tyranny in
dom of worship and the sacred the War Secrets Bill, which would
their hearts and ruthlessness in
have constantly gagged war news.
heritages of our people, they find
their
souls,
have
driven sub¬
these privileges assaulted at home It would also have put the news¬
jugated peoples to war for con¬
papers completely at the mercy of
by their own Government.
quest and loot.
The free people
Under this
It has been charged that the Government officials.
of the world must fight to defend
representatives of this country at law, had it been enacted, a news¬ their
priceless heritages.
But the
-O-v
be made in an public criticism.
The freedom of the press guar¬
orderly, gradual fashion without
antee is not primarily for the pro¬
sacrificing our ordinary civil lib¬
It is
erties.
For centuries before our tection of the newspapers.
Constitution was formed, English not for the protection of the Gov¬
judges had been dealing with the ernment or public officials. It is
question of freedom of expression. for the protection of the Amer¬
Those
early
Americans
were ican people,
and such methods
I
have
described constantly
therefore impelled by deep love as
of liberty, and insisted that this weaken public trust and public
protection to individual citizens faith. If the freedom of the press
be placed in the fundamental law is to be preserved and serve its
of' the land.
This right, contrary great purpose, there must be in¬
to
what
some
propagandists tegrity and forthrightness.
The
would have us believe,-is not the lines of communication from re¬
creation "of the present adminis¬ sponsible and known sources must
be kept open.
'
:
tration in Washington.
Changes
Government
lation of its license without cause.
and
troops.
pouring
public sentiment. >No public offi¬
cial should be permitted to slip
news
out to the public or use a
duck
the press
meeting by
At the very mo¬
armed forces are
ment
publish the facts and not be used
for the purpose of sounding out
favored
kept from that
armed
conferences.
The function of newspapers
and
representatives
give • informmation for
the
public and refuse to stand
sponsorship for it by making offthe-record statements on public
press
.
out
Bermuda
propaganda
and censorship program so threat¬
ening today, there has been a
studied attempt to undermine the
newspapers and the radio. . New
In
to
addition
Deal literature is
pressions
"twisted
as
the
full of such ex¬
"biased
news
editorials,"
stories,"
"garbled
news," "malicious tainting of the
news,"
"tampering
with
the
or pub¬
become liable
reporter
editor,
would
have
prosecution had he
written or printed anything that
a Government official had desig¬
nated
to
be
confidential.
The
to
criminal
the autocrat
is secrecy.
Propaganda is a de¬
vice
to
conceal
weakness
and
source
of strength of
distrust
shows
Censorship
fear.
to
Those
face
the
is
in
of
our
people.
their
people
until the people
the world know the truth.
press can
a
press
election
under
means
autoc¬
and
at home,
racy
and
slavery
wars
and
destruction throughout
the
As
world.
expression of
righteouness
power may fear
next
of
A free
make a free world. But
controlled
an
bright light of a free press
news"
and
"kept
newspapers" revealing all the news.
A
third
danger to the press
"kept
commentators."
Such
from
concentration
of
statements
are
evidence
of a arises
calculated
purpose
to discredit power in the hands of the Exec¬
the
governments of the world will
never be responsive to the will of
forces
may
of
we
power
evil
over
of
the
around the world,
keep undefiled and un¬
tarnished
erty—THE
PRESS.
the
prevails
the
shield
of
our
FREEDOM OF
lib¬
THE
W
Volume
159
Number 4254
THE COMMERCIAL & FINANCIAL CHRONICLE
A
quorum of the executive com¬
mittee for the transaction of busi¬
Proposes Central Reconstruction Fund For
shall
ness
Rehabilitation And Gisrrency Stabilization
(Continued■ from page 597),,.';a■
■
in any one risk in
any one nation,
with any individuals or corpora¬
tions
within
the
limits
of
their
charters, said operations being af¬
fected despite the provisions of
any other law, in providing aid
through the purchase, assignment,
or
resale,
or
notes,
bonds, or
equity shares, for the purpose of
promoting the economic welfare
of any
nation through
(i) exten¬
at
ary
inet
rate equal to that of Cab-,
a
officers,: and
Chairmen
shall
salary at
two -Vice
the
receive
each
tive department.
of
bers
the
The other
operations,
(ii)
to
provide for
longer term wealth developing
activities, provided that all such
credits
be
made
in
consideration of balanced budgets
and currencies fixed in value in
relation
dollar
to
the
United
only if the
general purpose is for sound
nomic
of
the
credit
the supervision
credit
by
American
the
the
will
credit
recip¬
of the
use
creditors
Board shall
both
approved
by
the
Chairman
serve
of
the
in
Chairman
the
the
the Board
on
thereof
members
as
the
of
other
and
Board
fund
as
the
Such
the activities of
the
be directed by the
may
Board.
(g) The Chairman of the Board
-
minate its
participation in any
undertaking, in whole or in part,
upon such terms as the Board may
shall also act
the principal ex¬
as
the
shall
otherwise
tive
equitable.
act
the
as
officer
principal execu¬
fund, and in
the
of
the' absence of both the Chairman
-
Sec.
6.
Board
of
OF
(a)
GOVERNORS
There
shall
Governors of
Vice Chairman
and the First
be
the
Second Vice Chairman shall act
a
the fund,
the
to be composed as follows:
(1) One member., who shall be
as
principal executive officer of
the fund.
Chairman of the Board, to be ap¬
pointed
officer referred
by
the President by and
this section
in
to
with the advice and consent of the
shall be filled in the
Senate.
appointment, and
the person appointed to fill the
vacancy shall be appointed for the
unexpired term of his predecessor.
(i) The Board shall meet on the
fourth Tuesday of each month in
the; offices: of the fund, ■ at 9:30
antemeridian, and may hold spe¬
cial meetings at other times on
(2)
of
Two officers
the
or employees
Department, to be
by the Secretary of
State
appointed
State.
'
(3)
Two
officers
employees
or
of the
Treasury Department, to be
appointed by the Secretary of the
(4) Two directors of the Recon¬
Finance
call of the Chairman.
of the Board,
Corporation
(one from each of the two major
of
Finance
the
Reconstruction
simple
only
a
but
(one from
for the transaction
In
members.
Corporation.
Senate
A quorum
the
transaction
of
business action may be taken
(5) Two Members of the United
•States
manner
of business, shall consist of eight
political parties) to be appointed
by the Chairman of the Board of
Directors
same
,
Treasury.
struction
members
each of
Congress.
by
majority of the Board,
if at least two of the
present are Members of
Neither the Chairman
the two major political parties) to
be appointed by the President of
of the Board
the United States from
vote
the Vice Chair¬
nor
shall
thereof
man
a
dent of the Senate.
(6) Two Members of the House
be
entitled
to
of Representatives (one from each
of the United States from
of
EXECUTIVE
appointed by the President
six
Members
Representatives
of
the
panel
a
House
chosen
Sec.
by
which
the
Governors
of
the Federal
is
REVOLVING
FUND
borrow
tion
from
to
for
shall
exceed
at
consist
an
fund,
of—
ex¬
(2)
to
(7), inclusive, of section 6
(a), such members to serve on the
executive committee
,
for
terms
record
one
books
the
on
of the
company
member of each group speci¬
New York, January 26,
A
of
each
(7), in¬
clusive, of the foregoing subsec¬
tion shall be four years, and the
the
initial term of office of the other
the
member shall
for
main
divisions
AGENCIES
at
The term
pf office of the Chairman of the
OF
F. W.
the
shall
act
Sec.
9.
Board shall be four years.
act
(c)
There
"
Vice Chairman and
a
as
Second Vice
shall
Vice
chairman
not
OTHER
The
of
Board
50
All
departments and
of the Federal Govern¬
shall cooperate with
the
ment
fund
in making available to the
fund, and to the officers and em¬
ployees thereof, such statistical,
economic, and other information
possessed
by such departments
and agencies as may be useful for
purposes of carrying on the activ¬
ities of the fund.
(a) Except as provided
(b), the executive
committee shall appoint all em¬
ployees necessary for the carry¬
ing on of ■ the activities of the
fund.
With such exceptions as
subsection
President
may authorize all
employees shall be
appointed and compensated in ac¬
officers
and
cordance
with
civil-service
the
and classification laws.
~
t
(b) The Board may appoint per¬
whose services may be re¬
sons
quired to investigate,
to super¬
or
vise the performance of, any un¬
dertaking of the fund.
shall
Such
per¬
be responsible to the
Board, and shall make such re¬
ports as may be required.
Such
persons shall be appointed from
sons
,
list of nominations made to the
a
Board
by
to
chairman
the
executive
of each
committee.
such
exceed
of
The
the
head
undertaking and not
assistants may be
two
appointed and compensated with¬
out regard to the civil-service and
classification laws.
DEPARTMENT
ACCOUNTING
AND
OTHER
DEPARTMENTS
AND DIVISIONS
Sec.
(a) The Board shall
an
Accounting Depart-
ment of the fund,
times
respect
to
the fund.
of
the
when
which shall at
maintain
books
accurate
any.
15,
1944,
dividend
a
A dividend of 25c per
/Hililm
to
all
All
of
the
complete and
account
with
operations
of
decisions and acts
Department,
Accounting
approved
by
the
Board,
other department, agency, or
officer of the Government.
'
committee
pointed by the President, by and
Chairman
H.
P.
J.
.
KNOBLOCH,
(b)
The
of
Accounting
Depart¬
shall publish
semi-annual
reports of all operations of the
fund, and such reports shall be
sent to the President, the Presi¬
dent of the Senate, the Speaker
the
House
head
of
of
(c)
shall
vision,
Senate,
for
a
term
(c)
of four years.
(d) The Chairman of the Board
of Governors shall be
paid
a
sal-
The
shall meet
i
been
business
be
8,
1944.
mailed.
Newark, N. J.
Feb.
close
4,
March
on
will
de¬
1944, to
the
at
;
Albert J. Feldman
1944.
Secretary
executive
each
de¬
Member
RADIO CORPORATION
of
OF AMERICA
The
ment
of record
Representatives,
each
and
the Common
payable March 15,
Checks
ment
of
on
Stock has
clared
Treasurer.
stockholders
Accounting
have
which
Depart¬
Historical
a
shall
Dividend
First Preferred Stock
such,
records as may be necessary for
the making, by the Accounting
Department, of the reports above
referred to, including a complete
record of all the undertakings of
the fund, both those accepted and
those
rejected.
Division
shall
The
The
prepare
Directors
for the
31, 1944,
dividend
share
have
declared,
period January 1, 1944
to March
87
of
the
on
quarterly
a
%
cents
per
outstanding $3.50
Cumulative
.Historical
also
on
Di¬
keep
First
Preferred
Stock, payable April 1, 1944 to
a
record
holders of record at the close
the
of business March
of, and make available to
public, information as to such
economic
of
be
may
financial
and
assistance
items
to
as
private
The
Board
as
it may deem
and shall assign duties
necessary
and functions to each
division
and
so
department
New York,
SOUTHERN
■
.
Dividends
There
hereby
are
authorized to be appropriated, out
of any money, in the Treasury not
otherwise appropriated, to each of
the accounts in the fund specified
section
be
may
3,
such
Seventy-five
the
fund -at
direction
the United
of
amounts
present
the
Twenty-five
stockholders
to
stockholders
Checks
submission
estimate
which
used.
for
such
of
the
the
15,
1944.
of
busi¬
close
all
record
of
August 15. 1944.
these dividends
will
stockholders
as
FINANCIAL NOTICE
Chicago, Milwaukee, St. Paul
of
and Pacific Railroad
for
to
be
Company
SEEKS NAMES AND ADDRESSES
OF BONDHOLDERS.
of
Trustees
a
amounts
are
of
payment
to
prepare
purposes
accounts
March
the
of record at their
they appear on the books of the.
Company unless oth^-wise Instructed in writing.
C.
E. A. MCCARTHY,
Vice-President and Secretary.
addresses
of
budget
required
at
under j
the Congress
to
in
be mailed
Board of
Governors shall annually
for
($1.26)
record
as
President
The
Cents
of
February 15, 1944, One Dollar and Twenty($1.25) June 15, 1944, to stockholders
of record May 16,
1944, and One Dollar and
Twenty-five Cen^s f$1.25) September 15, 1944,
States, to the revolv¬
ing fund account.
Cents
ness'
ever, That Congress may make
additional transfers from the sta¬
bilization
COMPANY
January io. 1944.
Three
Dollars
and
($3.75)
per
share on the
turn.,
five Cents
Provided, how¬
necessary:
•
aggregating
Kreferred stock ofdeclared, payable One Dollar
Southern Railway Company
today been
and
BUDGET
ESTIMATES
12.
RAILWAY
wew
...
to
Sec.
N. Y., February 4, 1944
ave
established,
APPROPRIATIONS;
y
establish
shall
such other departments and divi¬
sions of the fund
.
SOUS A
DE
Vice-President and Treasurer
capital, industry,, and agriculture
(d)
3, 1944.
S.
GEORGE
in the United States.
Railroad
the
are
;
seeking
names
holders, their addresses and the amount,
them to enable the Interstate
to submit such plan of
reorganization as may have their approval and
(he
of bonds held by
Commerce Commission
that
of
the
The following
Court.
District
are
the issues outstanding:
7
CM & St. P. Ry. Co. General Mortgage
Obrles Hugks lark-Up Case Appealed To
U. S»
;
V
.'
CMStP. & P. RR Co.
shall
up
Milwaukee & Northern RR Co. Consolidated
Chicago, Milwaukee & Gary First Mortgage
(5) of the Bankruptcy Act
having information as to the'
securities
of the Debtor Company to divulge such informa¬
tion to the Trustees.
Responses are to be mads
to R. J. Marony, New York Fiscal Representa¬
tive. 52 Wall Street, New York 5, N: Y.
"
Section
(Continued from page 595)
requires
practices do not have a reasonable relationship to the
current market
price is to establish the fact that the "custom
of the trade" is to go
in for smaller mark-ups.
Hence, the
executive
Commission's,citation of the disciplinary action of
the
executive
Business Conduct Committee in
on
under
other
any
'
executive
on
cir¬
'■
committee
the first three Tues-
days of each month in the offices
of the Fund at 9:30 antemeridian.
Circuit
Court,
a
an
The
Hughes & Co. dealer-broker registration,
made reference to this citation.
(Full opinion of Court ap¬
peared in the "Chronicle" of Dec. 16, 1943.)
77
any
(c)
one
and addresses of holders of any
NASD
10% mark-up case.
LIQUIDATION NOTICE
in its opinion affirming the Commission's
revocation of the
Convertible Adjustment
Milwaukee & Northern RR Co. First Mortgage
Mortgage
Supreme Court
Chairmen
cumstances.
with the advice and consent of the
s^are
f
::
in
11.
maintain
declared,
the Company's
on
Congress.
Sec. 10.
in
has
capital
stockholders
of record at the close of business March 1, 1944.
partment
PERSONNEL
share
March
per
payable
the
,
Directors
of
cents
of the
serve
Chairman of the Board, to be ap¬
ol
COMMON DIViDEM
Such Vice
committee.
shall, also be a First
close
SON, INC.
A. HOLLANDER &
HIHWIHIllMiMlimnmHI
agencies
chairman
as
and the First Vice Chairman
Second
the
DRAGER, Assistant Secretary.
February 9, 1944.
time
GOVERNMENT
organization of the fund.
man
at
J. R. FAST, Secretary.
the close of business February 16, 1944.
stock,
of
the executive committee, and
in the absence of both the Chair¬
term of four years.
a
record
1944.
•
of
of
be unpointed
of
February 18,
'
names
such
the
on
TEXAS GULF SULPHUR COMPANY
OF
(b) In the absence of the Chair¬
the First Vice Chairman of
be two years; and thereafter each
1944.
(20) Cents per share
capital stock without
Company, payable March 15,
Twenty
CMStP. & P. RR Co. 5% bonds of 1975
the
Board
of
declared
par value of this
1944 to stockholders
business
man,
member in each such group shall
of
dividend
has been
$50,000,000.
COOPERATION
(3) the senior executive officer
fied in paragraphs (2) to
PIPE LINE
■i.'IK; 28 Broadway
six months;
(b) The initial term of office of
BUCKEYE
COMPANY
public has been declared out of the surplus
net earnings of the company for the
quarter
ending March 31, 1944, payable March
15, 1944, to holders of such stock of
Reconstruc¬
any
THE
THE regular quarterly dividend of
I Forty Cents (40c)
per share on the
the
not
31, 1944,
holders of
to
Common capital stock of the company is¬
sued and outstanding in the hands of the
revolving-fund
account, such outstanding indebt¬
edness
1944,
Common Stork dividend
^
Corporation on ac¬
security for emergency
purposes
1,
8, 1944.
Finance
ceptable
twenty-five cents ($0.25)
share on the common stock, without
value, of this Company has been de¬
clared, payable March 16, 1944, to stock¬
holders of record at the close of business
March 2, 1944. Transfer books will not
be closed. Checks will be mailed.
,
a
v
w„ e; itawkinson,
February 1,10 J 4. Secretary-Treasurer.
par
per
for the quarter ending March
payable April
dividend of
per
Eighteen
such stock of record oh' the books of the
company at the close of business March
ACCOUNT
the
MFG. CO.
COMMON DIVIDEND NO. 79
A
and Three-quarter
share on the *>%%
cumulative Preftrred capital stock of the
company
issued and outstanding in th»
hands of the public has been declared out
of the surplus net earnings of the company
Sec. 8. The Board is authorized
to
I Dollar
Cents ($1.1 Bh)
execu¬
authorized
ecutive committee.yU:.::
shall be final and conclusive and
(2) one member of each of the
shall not be subject to review by
groups
specified
in paragraphs
Re¬
Chairman of such Board of Gov¬
one
shall
be
of the
(1) the Chairman of the Board,
System (one from each of
the two major political parties)
who shall be appointed
by the
•
shall
committee
who shall be chairman of the
serve
ernors.
There
(a)
executive
of
Speaker. ' /v.--;
(7) Two members of the Board
of
7.
,%
COMMITTEE
NOTICES
AtUS-CMmEBS
;AC>)
THE regular quarterly dividendof One
^
power
AUTHORITY TO BORROW FOR
all
"of the two major political parties)
be
committee
the
in
proceedings of the
Board except in the case of a tie
vote, or" be counted for the pur¬
pose of determining whether
a
quorum of the Board is present.
panel of
Six Senators chosen by the Presi¬
to
executive
preparation of reports
with respect to such projects.
the original
as
isH:A.\ HAS
Preferred Stock dividend
the
the
(h) A vacancy in the office of
any member of the Board or other
DIVIDEND
//
*
(d) The chairman of the
tive
the First Vice Chairman
absence
NOTICES
A All ELfli«;TKk<; (O.UJM>Y
majority.
the
ecutive officer of the fund. In his
deem to be to the best interests of
BOARD
of
all matters.
on
as
under
circumstances.
with
simple
a
committee shall have the
absence
Chairmen
nection
(c) The Board is authorized and
empowered to assign, sell, or ter¬
and
and
.
shall, however,
perform such other duties in con¬
the Board.
States
ab¬
First Vice Chairman, but neither
of such Vice Chairmen shall serve
Vice
;
United
the
in
Chairman
Vice
Chairman
the Board
serve on
thereof
the
Second
any
of the
of
sence
authorize
representative of the
a
(f) The First Vice Chairman of
of
objectives, and only if the
government receiving
or
the government of
ient
eco¬
of
Board, or either of the Vice
thereof, for any cause
deemed sufficient by him.
Chairman
by
chairman
to vote
Chairmen
be taken
by the Board upon such terms and
for such period or periods as may
be agreed upon, but
Chairman
the
as
Such action shall
may remove
the
of
The
for
•
the Board shall
fineness.
(b)
office
act
may
perform¬
duties
(e) The President
from
States
of the present weight and
their
«;>/■> ■>>
business, the executive committee
members
of the Board.
in
incurred
of
ance
ent.
as
but shall be reimbursed
travel, and subsistence ex¬
ernors,
for
Member of Congress is pres¬
In
the
transaction of its
one
the
services
members of the Board of Gov¬
as
DIVIDEND
its
of
appoint subcommittees thereof to
study,
with
representatives
of
Other governments, projects with
respect to which joint account
undertakings are proposed, and
ceive any salary for their
penses
of
re¬
half
of
membership, but only if at least
mem¬
shall not
Board
sions of short-term and interme¬
diate funds for financing seasonal
extensions
a
rate equal to that of
of an execu¬
a
Under Secretary
an
consist
611
The
In
the
All
First
National
State
of
creditors
hereby
notified
the
to
ED.
Dated
Bank
located
at
Butte
^Nebraska is closing its affairs.
of
December
association
present
S.
2,
are
therefore
claims for
payment.
DONAHUE,
1943.
President.
a
THE COMMERCIAL &
612
Iitf.er national Currency
Unitas
Gold Versus Bancor And
:
the
and
want to tell you
I
forced
tremendously significant as
of
proposals
than it did.
Foreign exchanges
and
Keynes
the
did go down,
anomaly: Ster¬
here was the
but
.<•
-
startling figures for ex¬ ling went with the continental
exchanges. And England was the
from the United States in
one country over there, of the bel¬
January, 1919, with a balance of
ligerents, that was improving her
trade, I
think, of $410,000,000.
We had
ports
balance
trade
That
reached $635,000,000
great volume of goods
the
business
budget, working towards the re¬
sumption of gold payments. The
thing was anomalous.
Then late in the autumn it be¬
going out
reaction
reversed
started with November,
the Armistice, and turned business
had
that
Well
we
the
after
immense
financial
prestige between us and the weak
Continent.
They
were
buying
the U. S. Treasury
used in pegging
from
money
exchanges—precisely ing
foreign
lire, for drachmae. And then
as we sold goods on the Continent
for francs and lire and drachmae,
but above all sterling.
seeing the immense volume
great affection, Franz Meyer, the
foreign exchange trader of the old
National
Bank of Commerce—a
man who
knew foreign exchange, who got
for me information from various
ofV the other foreign exchange
trader,
a
men.
1919, J. P. Mor¬
March 20,
On
& Co. suddenly unpegged
sterling.
They had been buying
all the sterling offered, with dol¬
gan
merce,
a
nent, put up
that
000.
officers'
his face very grave.
It
stirring day in the foreign
somebody
And
exchanges.
ex¬
dollar obli¬
another $3,500,000,-
Then
fed
got
as
ventured
'
and
he seemed to be and
question: "What is
a
position, Mr. Meyer?"
And
answered, his face lighting up,
"We
short."
are
had
He had
.no
illusions.
Well, that afternoon—I am going to take a little time for this;:
episode—I watched him. I think
he had 10 telephones on his desk
—maybe only eight.
Yes, I
"Yes, yes, I buy $4.26.
$4.29."
grinned.
He
was
at
me
and
"I make $1,500."
'i .
a very good trader!
the
But
■
"looked
market
•
If
we
something like
be established.
the
And he and other
,
had had
a
reaction in 1918,
.
,
don't
And
the
that
harm.
tell
anyone
trader
who
.
you
makes
a
wild foreign exchange
doing
anybody
any
He is doing good. The bid
profit in
market
let
a
is
and asked
prices would have been
very much further apart if he had
not been there trading,
i
We spent billions of good Amer¬
dollars in direct pegging of
ican
foreign exchanges.
I
say
billions
-—let's
get the figures rather ex¬
actly—something less than $3,000,000,000 altogether from the Ar¬
mistice down to June 30,
in rele¬
advances,
in
pegging and supporting after the
pegging stopped, the foreign ex¬
changes and the export trade on
Government
vant
Then I expected that the export
soon.
would
have
to drop pretty
I thought those foreign ex¬
changes could riot stand the strain.
The
end
1920
of
country
any
trade
with
relief
South
on
unfa¬
the
America
to advocate that
Now I take it that there is gen¬
knowledge of the nature of
there is not time
these plans, and
for
me
to
is to put
technical
explain- the
j
--
m
-
thing that they propose
the strength of the strong
behind
the
weak
cur¬
pulled through and the sta¬
would have lasted, had
not been for the complication
in Poland to
it
of
reparations.
• •
,
Now, Germany is a special case
after this war,
of course.
bankers that
ment
to say,
"No,
Invest¬
I have talked
won't sponsor any
we
We
German bonds.
not prob-.
are
ably going to sponsor any Italian
bonds.
But bonds for Denmark,
in parentheses
Monday night bonds for Norway,
bonds for
who is now Con¬ France, bonds for England—yes^
gressman from Illinois, working we can do that, under the proper
from about 6:30 until 1:30, going
conditions."
over a bill that he has since intro¬
Now these conditions, to
my
put
to
want
I spent
that
with Mr, Dewey,
duced, a copy of which I have,
designed to provide a way where¬
by our Government can cooper¬
mind, involve definite agreements
about stabilization of currency oh
gold basis.
There is going to be need for
a
other European govern¬
with
ate
cooperate with in¬
vestment bankers in this country,
or
other countries for that mat¬
ments
or
can
legislative
some
market
home
[Text of Mr.
We
of credits'.
50%
before
country
ter, and go in on joint account up
to
changes in this
investment
our
work right, either at
can
abroad.
or
repeal
must
the
Johnson
another
issue.—Editor.]'
Dewey's bill
appears
on
Act, of course, before we can lend
page in this
to foreign governments.
That is a very modest sort of
We ought to change one of these
thing
as
compared
with that very humiliating provisions of the
$10,000,000,000 bank Mr. Morgen- Securities Act, requiring a foreign
thau wants to establish for invest¬ government,
in
the prospectus
ment purposes.
which it signs, to confess repudi¬
The
bankers
sponsoring
Dewey's bill calls for $500,000,- ation.
000 as a revolving fund. And as such a Toan ought to put that fact
is
it
going
be
to
used
joint
on
to only 50%, another
billion would be called for
account
up
the exchanges. And half
it, we tried it; it was no from the other participants in the
But you don't need more
good.
We must not: do • it again. credits.
We wasted $6,500,000,000 doing it for these stabilization loans, if you
see
to
it that they accomplish
the last time.
rencies to peg
did
Now, what is the right way to
thing?
First:
The thing we did last
time—gifts for the weakest coun¬
troubles,
bilization
supervise that loan, to countersign checks, to see that it was
properly used. It worked: stabil¬
I
measure:
eral
*
Treasury, over there
here
had had the
we
would not have had
Germany would
Germany
these
of
currency,
balanced
periods budget, it straightened out.
Very nice!
If
prompt recovery.' The thing went
on strongly until 1929—early 1929.
Then troubles began to come.
How, indeed, can
hope to start up
Europe during the ization
other terms?"
any
production started right up, full
employment came about.
They Were pretty helpless when
that thing started.
There was a
desperate
shortage of working
capital. That shortage of working
capital, with other complications,
led to a sharp reaction in the whi¬
ter of 1925-1926.
But there was
Well, we put the Hon. Charles
S. Dewey, who was in the U. S.
to
reconstruction
and
I
won't
record, of course, but it
humiliating to ask a
the
into
is
little
a
foreign government to submit to
the Securities and Exchange Com¬
mission a statement like that and
perhaps to have to revise it six
seven
times to fit the wishes
or
Exchange
and
Securities
the
of
their purpose.
do this
There is need for the
Commission.
into the
go
.
at
as
from his peo¬
soldiers wanting
pensions,
wanting
pay, /people
wanting
food,
pitiful,
nobody
willing to be taxed, nobody will¬
ing to buy bonds—he was taking
the easy way, he was leaning on
bank
issue,
notes.
And
as
he
and
bank " notes
printing
bank
of
was
more
the
long as
market would
take the paper money which he
created, his people could bring in
foreign
exchange
food and luxuries from outside.
We
sold them a lot of luxuries
in 1920.
We sold them everything
but the raw materials
to
have
been, using
they ought
to
work
up
industrial revival,
financial reform in
There was no
no
went on,
while we gave an artificial sup¬
port to foreign exchange.
Europe while this thing
Now
it
is
they get their
Gifts,
in order.
loans,
as
do
should
the
precisely
this
kind
Keynes-Morgeri-
That German loan of $200,000,-
000
it
looks
small today, but
amazingly effective. Ger¬
was
very
benefit from it di¬
budget was
by it.
The German
Government could not spend it for
hundred
millions at the maxi¬
domestic purposes.
The German
mum, not the billions proposed by
Government
got
$200,000,000 of
these plans—conditioned on dras¬
tic internal financial ana currency gold which it put into the Reichs¬
bank as a gold reserve.
Then the
reforms, conditioned on foreign
German Government got from the
supervision of the use of the pro¬
Reichsbank, in exchange, 800,000,ceeds of the loans.
000 in marks.
But it was obliged
Now here we have
historical
to use all of that 800,000,000 in
precedents of a very definite sort.
marks in buying goods in Ger¬
We did that for Austria in 1923.
We straightened Austria out. We many for delivery in kind on rep¬
gave her
Austrians
a
good
start
and
the
began to pull up from
rectly.
not
1924
and we sent Mr. Jeremiah Smith
of Boston over to sit on the lid,
to
it for Hungary in
countersign checks, to see that
under the Dawes
000.
1924
Plan—$200,000,-
That was the biggest of
to
these
account:
more,
ceeds
for
so
of
was
obliged,
There
of
was
the
foreign supervision
Reichsbank and of
certain of the revenues,
Germany
other
moreover,
200,000,000
that none of the pro¬
the loan could be used
that
internal
year,
had
there
had
problem
been
able
been
and
to
no
if
use,
repara¬
Germany
under the
supervision of the creditors, that
800,000,000
marks
' in
putting
the
com¬
recommend
I
the
abolition
of
the Securities and Exchange Com¬
recommend
mission.
I
stitution
for
that of
and Exchange
a
sub¬
the
Securities
Division of the De¬
partment of Justice, which shall
detail
in
work
not
with
every
which
shall
punish, under criminal law, viola¬
but
transaction,
of
tions
Securities
the
and
Ex-"
change legislation—certain crimi¬
law.
'
There is
no
more reason
for the
detailed regulation of
ties
the Securi¬
and Exchange business than
any
other legitimate business.
recommend " that
in
created
the
vV
there
be
Department
of
purely ministerial
body to receive registration state¬
Commerce
ments
a
and
prospectuses, so that
responsible docu¬
the basis of which a man
there may be a
ment, on
working capital into the industries
may
and
sented
perhaps some measures of re¬
don't make
I
parison with the boom years and
the wild years of 1924 to 1929.
I
tions
to about 50% of new
up
1923.
of
affairs..
stabilization leans. *
both
and
coal
got
once
issues, as compared with 1923, in
a part of 1936 and 1937, but most
of the time it has been under 19%
nal
it
find,
If
used properly.
We did it for Germany in
German
things.
And
did
The
relieved
arations
there.
We
got no
many
But, second: Stabilization loans
—tens of millions to two or three
the money was
and send back.
was
wejl
that
houses
recipient permanent good.
ple—returning
state
them
financial
faced with pressure
the
receive
at
beginning of 1919.
Continent of Europe was go- ! of thing that the
Eu¬
good.
no
worse shape
than she was
in far
was
there
the basis of it.
"trade
creditors—did
point was that the Finance
Minister of a European country,
$4.29, were bringing order into
it.
due
or
proval.
against
Business started right up,
have
favor¬
elsewhere.
or
we
The
buying at $4.26 and selling
men,
at
the
level could
a
States
I gave my ap¬
of the loan before
of her
out
business-energizing
were
factors.
details of
this bill, Mr. President, but I will legislation to be changed with re¬
say that I endorse this bill.
And spect to that as a maxter of in¬
ternational good feeling.
tries:
Red Cross or the kind of 1 am
going to venture this-re¬
But for either foreign or do¬
thing that Governor Lehman is quest, that you refer it to an ap¬
mestic freedom of American capi¬
do—but gifts, not
high prices. Immense real estate expected to call it loans. Don't propriate committee of this tal, in either foreign or domestic
loans.
Don't
Chamber for study.
speculation had taken place-great
use, I think we have - got to go
Let me describe the bill for the
increase in taim debt for specula- expect to get the money back.
tive purchase of farm lands.
We Wipe it off. Limit it to what is record. It is House Joint Reso¬ further.
New capital for domestic pur¬
were
not in good
shape for a essential. Most of it ought to stop lution No.
226, "to provide for
reaction, but we went through it. after the first harvest after the central reconstruction fund" and poses through the securities mar¬
ket is very difficult to get—there
1
And, meanwhile, this $6,500,- war. '
so
on, introduced by Mr. Dewey
are tremendous hurdles/ Since the
And even as you make those
000,000 we had given Europe—
Feb. 1, 1944, referred to the Com¬
Securities and Exchange legisla¬
$3,000,000,000 from the Govern¬ gifts, make demands upon the mittee on
Foreign Affairs.
tion has been in existence, we
ment and $3,500,000,000 from pri¬
governments of the countries that
rope
kinds of disorder for a day or two
until
United
currencies
...
.
,
vate
full of all
was
Europe
,
sell
he
arising
selves,
-
.
Then
offset
could
balances
The big
up
eJ\ we, Jvere braced for it, it
™oul<* n5
ve jJone j11?
£?12cu'
y w.as brac'ed i°r m
1920 a great many people had
. come to
the idea of a perI manently higher price level. A
great volume of credit had been
extended against commodities at
our
he
to
our
we
grave.
It is serious, very serious." j
But I didn't think Meyer was as
I
exports
example,
for
details of them. J
.
of 1920-1921.
pressed sympathy about the ster¬
ling picture.
He said, "Yes, it is
unhappy
Britain
balances
ability to give credit became^restricted, , and the the great crash
crashed.
We went through
of the Bank of Com-,
lunchroom
was
Meyer
Franz
into- the
coming
this side,
on
gations of England, giving also
open account credits to the Conti¬
(
remember
creditors
taking sterling, taking
provided by the British Gov¬
borrowed by the U. S.
Treasury. They unpegged it.
ernment,
I
able
I don't propose
year.
lars
day
Great
whereby,
'
Private
•
;<
Keynes-Morwe did not keep them. ♦ We sold
genthau Plan in operation in 1919,
them in London.
London was the England could have bought goods
great center for all kinds of spec¬ here, sold them at a profit on the
ulation.
If you wanted to sell Continent, paid for them by put¬
anything, you could sell it there. ting francs, lire, drachmae into
But this time they got stuck. the International Exchange Fund,
They bought all the drachmae, all while we got credits in that fund,
the. lire, all the Belgian francs, and England,
by remaining net
all the French francs, the deprecL debtor to the fund, would have
ating exchanges that we created had her profits free and clear,
here through exports.
And the and we would have had big cred¬
strength
of
sterling had been its in an international fund com¬
bending, yielding, but sterling car¬ posed of deteriorating drachmae,
ried on that boom for
another lire, francs and so on.
and seeing the immense
strength
of those
foreign ex¬
changes, I looked into it rather
carefully,
I had as my tutor a
man for whom I shall always feel
of exports
good
the Continent for francs,
on
for
and lire,
very
sterling, giv¬
dollar obligations, selling
us
them
plans propose—francs
what these
And
vorable
her
goods here, giving us
which was being
the
clearing
credit,
four months
Armistice, advancing
were,
would have been
the thing
easier.
far
-:
up
losses, and have a crash.
our
to be pretty clear what was
nappening.
When our Treasury
stopped,
London
stepped
in.
Britain * interposed her
immense
ning of a great boom.
What was doing it?
industrial revival. '
and cut approval of it and I carefully ex¬
amined the figures. 1'I was not
This folly—our own Treasury, satisfied with the figures on the
I think, has no financial recollec¬ floating debt of Poland arid in¬
tion of this episode; Mr. Keynes sisted
on
more
information.
I
has.
And I want to read you a finally concluded that they were
little
passage from the
Keynes buying too much tb use in buying
Plan which shows you that he has. silver for coinage. They had been
The episode was pretty costly to so sick--their people—of a very
England. > She had stood in be¬ inferior, shoddy silver coin that
tween us and the Continent.
they wanted to give them a very
I persuaded them
The Keynes Plan,' Section 14, fine silver coin.
standard of the Swiss
says, as an argument for the plan: that the
"This would give everyone the franc was good enough and then
great - assistance
of multilateral took that difference off the face
We will pull
pose. /
gan
the begin¬
about March into
up
position—balancing her
financial
up—it
ran
in June. This
started
ex¬
But
just
the stabilization
of
We did it for Poland in 1927—
and support them, keep
them pegged, so that goods may $72,000,000, as I remember.
The currency got them back to a sound
gold currency forthwith.
They
be sold, exports go out.
We will loan Would have been a little big¬
had been through a welter of in¬
have
another boom—very wild, ger, if I had not been critical.
I
flation—money sinking, sinking;
unsound boom.
We will get fed did not want to make any more
But everybody losing confidence and
up after a while with pouring so foreign loans at that time.
hope.
Just the sound currency
many dollars into that great in¬ for some reason the Bank of Eng¬
and the balanced budget, them¬
ternational machine that they pro¬ land was said to have wanted my
giving bring the thing to an end sooner
interpretation of the
White plans.
on
sure
put
weak
the
lief,
right up into a dramatic
do—to
to
behind
dollar
changes
thought
I
notes.
1919-1920, because they are
years
the basis for
printing more bank
that the pres¬
those exchanges would
anced budgets,
about the
in the
us
upon
badly to pieces—unbal
1919, ring pretty
of January,
end
about
studies
page)
(Continued from first
,
wants
Plan
thau
the
Thursday, February 10, 1944
FINANCIAL CHRONICLE
be sued if he has misrepre¬
or
omitted
essential facts,
[Volume 159
the basis of which
on
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4254
man
a
Mr. Keynes any longer," said Dr.
Anderson, as he proceeded with
the balance of his address, which
may¬
be, put in prison if he has done
the wrong
things, made the wrong
...^xV'
■'
We
have
got to do that or
something like that to get our
statements.
securities
market
foreign
poses.
Now
•
„
.
free
for
' *
Gold
efforts
that the board
ican board.
is
a
because
trust
bank—both
have
international board in control. All
ceded
States
France
three have
in control.
A
■
international board
an
bloc
-
bank,
board of directors is
debtors to the bank who
borrow
bank.
more
■
which
safe
a
immediately
collapse of
late
1936, did
in
and
the
not
pre¬
gold
sub¬
dollars or paper
or paper francs for gold.
The
governments did not trust
one another enough for thht.
If
in the course of the day's trading
want to
is not
money,
analysis
Britain
Great
the
of whose stitute
made up of, pounds
majority
a
paper
governments will
men nor
United
an
the
sub¬
for it,
anything else. The Tripart¬
Agreement,
involving
the
ite
and Mr. Morgenthau's
investment
to
last
the
■
paper
.feature alone,
of these in the foreign exchange market,
plans, would damage any any government accumulated a
sizable amount of another gov¬
sound plan, I think.
>
The lenders should control, not ernment's
currency,
the differ¬
the borrowers, in a financial in¬ ences were promptly settled in
stitution.
gold.
>
J
That
-
three
,
Both of these
Plan
and
Gold needs
Morgenthau Plan,
propose to monetise the bad debts
which England owes to the out¬
The recipient of
not have
Mr.
stamp
world.
England, following
Keynes, allowed sterling to
get into a very perilous state, • It
ceased to be gold, it .became pa¬
even
promise to
a
The
paper,
be
irredeemable
It
the
gold does
government
trust the
to
upon
it, if he does not trust
stamped it.
government that
of
another
hope
too
often dis¬
4
Money
factor
be
can
in¬
by governments to sustain
value
of
irredeemable
money, and that
the government
omic lives of
paper
is the power of
over
the " econ¬
as
000,000
a
paper
people sell
England
war
their claims
on
Lon¬
discount
will
in
vary
a
free
gold market or in a free foreign
exchange market with the cir¬
cumstances
make it
that
more
in 1864, blaming the depre¬
gress
of
ciation
the
Greenback
the
on
manipulation of speculators in the
gold market, passed an act for¬
bidding gold futures. The results
disastrous and the
were
without
Congress,
debate, repealed the law
weeks later.
two
prevailing
doctrine
economists down to the
was
among
War
World
First
could
ments
govern¬
their
coerce
face
at
dishonored paper money.
a
But
that
not
into' accepting
peoples
value
brought
war
an.
immense
intensification
and
don in the open market for what
less probable
make
good its promise, and with the
circumstances
that
govern
the
probable time of the redemption.
all this blocked debt would be put
into the international fund, and
It
is
to
be
three
put in there for 23
for
for
to
paper
20
after
that
2%
of
years.
England's
creditors
credit with this fund
cash,
the
of
the
Morgenthau
fund, because we are not sure if
that institution will have deposits
or not.
They don't say anything
case
about their liabilities.
Well, that
England.
is
Federal
The
no
to
way
Reserve
help
Bank
of
the World
ought not to take debts
that people cannot pay into its
portfolio and hold them for 23
years and create money against
them. That is pretty bad.;
<
We must
the way
help England, yes, but
for England to help her¬
self is to make
a
settlement with
each of these
owe
countries that they
separately—the most of them
in the British
part—and
four
or
which
they
payments
some
Empire, the biggest
then come to ; us for
five
hundred
will
to
cash and
millions
use..in
them,
some
upon
making
giving them
long credit—
work
ways
orders
an
Standard
loyal peoples
quite unwilling
their irredeemable
as
merely v dis¬
promissory notes.
times of currency
in
there
arises
the
Al¬
dis¬
doctrine
that "a
pound's a pound" and not
merely a promise to pay gold coin
of
fixed
weight, and fineness.
There
is
believed
to
be
some
port.
pay gold, still accepted, though
with growing distrust, by central
banks of the Scandinavian
and
Thus
we
saw
the
unanchored
paper
itself" and
no
longer
Baltic countries
as
a
a
promise to
substitute in
gold
stay with
part for their
own
The
interest.
"We cannot afford to
and
Exchange
.
,i.
-
>
dishonored,
4.)
Rest
But this
enough
and
and
Mr.
Lord
able
financial
prestige of Britain
was
very
great.
reserves.
Value is
a
psy¬
circulate
side
Foreign
gold
controlled
gold, "or."
But it is not even
gilded, much less gold.
The in¬
ternational money is to be credit
entries
they
sell
to
want
be
multiply- and the fund
business,; its balance sheet
on
both sides, its liabili¬
ties being deposits in bancor and
does
itsf assets
The
k
the
I have
ness,
world
man
the
com¬
which
will
with
work
diminished
that
very
could
German
little
and
that
when "it
the
foreign banks had little motive
for buying it because they could
not
get it back into Germany
again to use it.
We saw rigorous
control
of
all
exchange trans¬
currency
get outside
got outside,
and White plans
The
the
Tyranny
temporary
of
Gold
success
of
;
the
the
war
The
came.
be
to
pound
serviceable
a
tool in trade between Britain and
other
countries,
and
entirely ceased to
conducting
trade
be
of
one
be
almost
tool
a
its
for
between
most
two
used
to
important
It has in general ceased
services.
valid tool for trade among
units of the British Empire.
to be
the
has
countries—which
outside
a
In general
it prevails only in the
mother country itself.
England
has cigantic blocked debts to the
outside
but
world
she
ditors
does
due
demand,
on
allow
not
sell
to
even
her
their
cre¬
credit
claims for what
they
4 But
governments
S'iU
is
and
men
eacer
get.
can
enough for gold.
being currently used
Government
British
on
account
aire
Gold
to
:
pull
on
the
the
rupee
in India and to bring out
hoarded
Gold
great
food
discount
reserves
in
on
India.
is
being, used
in
Persia
which is glad to get gold but re¬
luctant to take sterling.
unnecessary, that Hitler had
found a way to do without gold
and
that
the
long tyranny of
gold
was
over.
Parenthetically,
I much prefer the
tyranny of
gold
the
Gold
as
the
International
gold?
Currency
ments and
the
Men,
can
rest?
On
The Keynes plan has
ingenious devices to pre¬
vent
situations
in
which
could
be
shown
to
count
in
terms
bancor
of
be
at
dis¬
a
gold, which,
however, could break down read¬
ily, even with good faith on the
part of all the participants in the
fund,
which
break
tries
down
and which
the
would
certainly
important coun-.
if
remained
event
outside
would
of
the
does not rest
failure
any
on
fund,
break down
in
of
any
the
country to comply with
quirements of the fund.
re¬
But
it
gold. The bancor
is
explicitly never to - be re¬
in gold nor in anything
On what, then, will it rest?
On faith?
On prestige?
Maybe
we
can
create a prestige for an
deemed
else.
international
fund
whose
assets
dishonored
prom¬
consist
of
ises
governments
of
the
and
central
tige. It is possible that the pres¬
tige ' of the' United States would
be
that
great
so
alone
could
for
carry
time
a
the
burden
we
of
sustaining the bancor, but I doubt
that
for
our
dare
risk
strained
so
generosity
is
sufficient
this, and I question that
great
we
our
by
and
strength, already
our war finance, in
needless
so
a
post¬
task.
But
in
neither
-
en
the
govern¬
central banks all
world will take
question
it.
currency
world?
substance
bancor
No.
some
nor
international
of
Post-War
Now what is the outlook for
post-war
what
on
value
war
the part of cer¬
be
Now,
.
banks which have lost their pres¬
down
monetary and economic
experiment led to the superficial
generalization
exchange rates of the weaker
countries,
and
in • the nominal
gold equivalent of the bancor or
effective¬
German
tain opponents of the gold stand¬
ard that gold had been proved to
the
unitas.
ceased
has
contemplate this.
contemplate reductions in
They
ness;
when
other
of
the weaker countries.
Its assets would
progressively de¬
teriorate.
Indeed
both
Keynes
sen¬
And the British; experiment of
ing in the foreign exchanges, be¬
cause
the people would smuggle a
pound
unanchored
to
gold,
it out of the country and sell it treated as a "thing-in-itself", can
us
a
for what it would bring to get give
very
tragic picture.
good money, But we saw develop The prestige of that pound in the
markets
is
in Germany a system of control international
badly
of the export and import of cur¬ shattered.
Foreigners who had
entrusted their funds to London
rency, as well, as, securities and
them
promptly
blocked
commodities, so tremendously ef¬ found
fective
increas¬
and
obligations of the central
or
exchange stabilization
banks
have
be
soon
would
; dollars
funds
sustaining the value of the
mark
It
ones.
lose
bancor
collapse of the Hitlerian
monetary system.
L venture the
confident
prediction
that
the
coercion
currencies—f
strong .currencies and increasing¬
ly acquire weak currencies or the
plete
of
of
mul¬
a
gether, to put the strength of the
stronger
exchanges behind the
wit¬
doubt, the
no
of
marks. Its purpose is to hold
different' exchange^rates tor
ingly
will
either
or
dollars, pounds, francs, drachmae
—and in time,
presumably, Ger¬
of Coercion
post-war
consisting
overdrafts in bancor
titude
of
national
weaker
The Limits
-
the
poses
to
the Keynes
plan
Morgenthau plan pro¬
rely upon faith alone.
Both^ propose
coercion.
a
great
Governments
deal
of
are
to
over
gold without
whenever they can get
Most of the paper currencies
*
are
swells
bank, or you limit the uses
they can put them at
own discretion.
German
accepted at home, nothing
prevent it from depreciat¬
The assets of the fund
actions
which
your
inter¬
overdraft
when the fund starts and its
liabilities are zero, but as trans¬
outside, you sim¬
ply refuse to allow them to trans¬
fer .these balances on the books
to
and
privileges with that international
fund.
world's markets
of the
fund
zero
can
in
the books of the
on
national
keep it
ex¬
change market. If foreigners hap¬
pen to have deposits in your banks
which
not unalterably."
He
"bancor," apparently a
it
compound
of
the
two
words
"banco" and the French word for
prices in¬
country, and you
out of the foreign
redeem¬
"but
calls
the
your
been
Rates
at
extend
you
not
currency
in
gold, not based on gold,
nominally fixed in relation to
enough
sufficiently
are
Coercion
on
is not the view of the
Treasury represented by
Morgenthau and Mr. White.
Keynes proposes an inter¬
national
tyrannous
people
submissive, and
your
think
States
these fail, if
is
powerful
government
your
I
British; Treasury - represented by
Lord
Keynes,
nor
the
United
men
when
currency?
nothing else.
'
will continue
to take them at varying degrees
of discount in the hope that the
promise will later be kept, and
because of the prestige of the is¬
suing authorities, fortified by the
legal tender peculiarities of money
and by the habits* of the people
and of the world with respect to
a long established currency.
And
finally,
dollar
The Keynes and White Plans
When paper promises to pay gold
are
The American
international
there is
Always the doctrine had been sibly abated, and that the conmoreoverj
that even ^though a trols w^iich have upheld the mark
the
dishonored paper currency might in
foreign exchanges will
and
oh much better terms here, at a
much lower rate of interest, if
she will definitely go back to gold
own
.
♦
pound, 1931-1939, treated
by British policy as "a thing-in-
•—fixed gold sterling.
I think she
has got to do that anyhow in her
little
very
«
■
in "
and
when
the
dollar
goes
to
the
"lower gold point" in the
foreign
exchange markets.
What else is
there but gold
to serve as an
no
In
forces
Coercion
magic in governmental authority
can
make something out of
nothing.
The prestige of a long
established and powerful govern¬
ment is very great.
The habits
actions, and such a limitation in
of the
people in accepting the the volume of these transactions
long established currency tend to that the German
government and
sustain its value. The legal tender
the Reichsbank could make the
quality of paper money aids in so-called "official rate" effective
holding it up, since creditors must on the limited volume of trans¬
take it in payment of old debts,
actions permitted, and the "offi¬
even
though they may try to cial mark" in the
foreign ex¬
avoid having to take it when new
changes held firm at the nominal
debts are created.
When a cur¬
parity.
Meanwhile a great mul¬
rency which has had world wide
titude of different kinds of marks,
prestige as long as 'the pound valid for
special purposes, sold at
sterling has, starts on a downward
varying rates of discount in the
course, it is difficult for the world
foreign
exchange
markets,
but
to believe that the worst is going
even
these were regulated and
to happen, and at various stages
controlled.
in its depreciation it has foreign
The Tyranny of Hitler
support as well as domestic sup¬
that
things out as an embarrassed
usually does with his cred¬
itors.
We will help with some
cash and she will get that cash
debtor
made
Germany
system work.
could
as
been
money
honored
bancor in the case of
the Keynes fund. We are not sure
in
look
payments made for
Meanwhile
would have
often
and
no
years,
year
have
will
Paper
Governments and
and
years
bank
Independent
Morgenthau Plan worked out
the
that the government
issuing
Irredeemable
details.
a
the
or
efficient,
dously
or
they> will brings sterling will go
very low.
And so the Keynes Plan pro¬
posed' a sleight-of-hand' by which
the
imagination.
amounts,
take
and
they will readily take because of
our
practice of exporting gold
governmental power,
and new government into, the details of the
governmental techniques for in¬ daily transactions of the people,
truding intimately into the book¬ you can make a dishonored paper
! the
free pound, lets
a
intuitions, and gold has
discount
to
take them.
summary on this point: 1.)
Assignats, the laws Men,
governments
and
central
fixed: .penalties of the severest banks will
'accept gold in pay¬
kind against transactions which ments because
they want it for
recognized the depreciation of the itself. >2.) Men will take paper
paper.
But despite the penalties, promises to pay gold as money
the French paper money dropped without
difficulty so long as these
steadily in value and commodity promises are kept and they be¬
prices soared.
The Federal Con¬ lieve that they will be kept.
3.)
*
I
year.—
Well, if after the
tries to restore
Gold has
revival
was
•
be paid.
they will not
at heavy
they will
hedge them if they can,
and they will seek to
pass them
on quickly if
they can when they
seek
assets, and that they create debts
only when they can see how these
can
world
limited
that they
be honest, that they
keep their promises, that they
keep their demand liabilities safe¬
ly within the limit of their quick
debts
the
except
No act of faith is called for when
not
redeemed.
of
Gold is
gold is used in payments, and no
compulsion is required.
■
with
"thing-in-itself."
a
tyranny of Hitler.
capricious.
All it requires of men and gov¬
ernments-and
central
banks is
In the period
men.
Men: everywhere, governments
everywhere, ; and central banks keeping of# the people.
In Ger¬
I
Parts of the jvvoxld
followed everywhere are glad to get it. many this power was intensified
When paper is offered instead of under
the < Hitler
England in that—in ■ the belief
regime
and
•that you can do thatr' Butrsterling gold, it will be accepted on'faith these techniques were elaborated,
got to a very perilous state. And if the government or the bank and we have had the spectacle in
the War broke .out.
Everybody ; which has issued the paper has Hitler's Germany of a paper cur¬
wanted; forget■ nfcof>itr 'Thby- proved itself worthy of confidence rency, with a microscopic gold
blocked it. You cannot .'even sell by a 4 satisfactory [ record of re¬ reserve and without gold redemp¬
it now.
It is blocked.
*; deeming the paper in gold on de¬ tion, circulating against commo¬
r
The balances are-very great and* mand.
If there is a suspension dities- at < fixed 'V#ricesviot;;.£.th6
they are .growing^ in;: thh-middle» of gold payments, the paper will commodities or, at all events, at
of August the London "Economist" still be taken on. faith, at varying controlled
prices. As faith waned
set them at over aJ billion pounds degrees of discount, so long as Germany substituted coercion, and
•—around $4,000,000,000 at the of-: there remains a general expecta¬ as the
government was virtually
ficiaf rate of sterling;, < But added 1 tion that the government or the omnipotent, andThe people dared
to that, the part to India is in-1 issuing bank will some day make not assert* their individual rights,
creasing alone at .the rate of £30Q,-; good its promise. The amount of and as the Gestapo ; was tremen¬
treated
to the
not
of the French
It
endorsement.
no
be tested with scales and with
can
acids.
side
per—fluctuating
Yet
voked
the
Gold and Paper Money
plans, the Keynes
the
Value
despite
value,
governments
in
neither
purely Amer¬
The Keynes-Morgen-
thau plans
of
of
stitute irredeemable
of Mr. Charles Dewey, is
measure
and
Governmental Coercion and the
international
the
remains
standard
•
thing that I would
emphasize in connection with the
one
chology of value,
Standard
the
of Value
either
»
,
Remains
Gold
domestic post-war pur¬
or
rational elements in the psy¬
long deferred and too
appointed will destroy value.
follows:
■
chological phenomenon. But there
are
613
coerce
ing
their
the
peoples
international
(Continued
on
in
prevent¬
movement
page
614)
*
International
force
the
of
the
the government
government
United States,
or
the government of
Britain, or the government of
Argentina to comply with the
mandates of the governing board
of
Russia, or
international
of- the
The
fund?
provisions of the White-Morgenthau plan make it very explicitly
their duty to do so, and section
VII, 8, of the July 10 version of
the White plan makes it the ob¬
ligation of every member country
of the fund "to adopt appropriate
legislation or decrees to carry out
undertakings to the fund,"
and those undertakings are num¬
its
For either the
and drastic.
erous
Keynes plan or the MorgenthauWhite plan to work, would re¬
actions
over
great as the authority
national state has ef¬
as
which
state
with
an
economic trans¬
world
quire
a
authority
any
asserted in
fectively
time.
the
peace
Is it realism to suppose that
whole world
the
support
-when
the
hang together in
can
of bancor or unitas
British Empire can't
optimism.
Evolution may mean
only change."
Thus spoke Henry
A. Theis, President of the Trust
Vice-President of
Waldorf-Astoria Hotel in
the
at
York
New
Mr. Theis went
City.
to say:
'
r
"And the only thing that evolu¬
and
an
"over-normal gran¬
international
ary," and an international control
of investment.
It
the Clear¬
sees
facilitating those
purposes as well as foreign ex¬
change stabilization.
The docu¬
ment
states, "We have here a
genuine
organ
of truly inter¬
national government," The White
plan is not so frank, but there is
much sympathy for these ideas
in important Washington circles.
Union
ing
as
the
a
1914, the world was
rather
than
the
gold
standard,
that
London controlled the gold stand¬
ard and that it was only super¬
sterling
human
wisdom
standard
London which
in
The doctrine adds
made it work.
the
that when New York became
center after
vidually and collectively.
If that
is so we must analyze the change
and
parts
component
its
into
necessary
mote
lacked
New
because
good, and oppose
bad.
The interests of thousands
vitally
affected by what the future holds
in
store.
Many
of
these are
widows, orphans, minors, and in¬
of
customers
our
are
competents, constituting a group
not readily qualified to speak for
itself.
As their trustees we have
a
is
fact
policy
that
social
the
economy
much
smaller
There
gold standard
money
were
many
markets
competing with London
gold prior to 1914, several of
them
very
powerful,
as
New
York,
Berlin,
and
Paris,
and
many others of real influence, as
lor
Amsterdam, Vienna, Switzerland,
1he Scandinavian countries, and
Japan.
These all steadied one
another.
All
would
pull
gold
from any country that was
over-expanding credit, and force
it to pull up.
It was not policy.
away
As
Mr.
Woodward
Hanover said to
nature."
was
operation
of the Central
me
time, "It
one
International
only in
came
co¬
crises—
and then at stiff rates of interest.
Now
New
steadying
York
lacked
from
1918
down
to
1925, and did not- get
adequate competition for gold till
overdrastic
the game—in
way—in
1928.
an
New
York
used policy in the 1920's—
policy.
But I must add that
Benjamin Strong learned this bad
policy
from
Montagu Norman!
bad
Both
we
•
and
London
over-
expanded credit in the 1920's, but
had
we
the
in
excuse
semblance
our
of
an
abundant
over
gold, while London had
no
excuse
all.
It is
its sponsors.
by
proper therefore to begin to ap¬
praise its successes and its fail¬
In
ures.
broadest
its
world
powerful
mg for
see
a
real gold stand¬
again,
with
money-centers
gold, and holding
several
competone
the
of
soundness
met the test of time.
banking system nor
the
the
been in effect.
has
"Then take
the
Securities
and
Exchange Commission. In an ad¬
dress : in Chicago, Jerome Frank,
then
member
a
of
the
Commission's
change
Commis¬
the Securities and Ex¬
sion, said
of
powers
of
abuse
such
could
powers
be
avoided solely by proper
behavior
on the part of those in charge of
the SEC; that a government of
against
prices within bounds, those re¬
sponsible for its administration
must regain the
confidence of
Dealism
by
men,
those
extent that
men
and to the
are weak,
the
with such power
entrusted
decent and intelligent human
are
beings, with a thorough sense of
their
He stated:
the possibilities
responsibilities.
'The way to meet
of
so-called "admnistrative
abso¬
kind of God-fearing human beings
economy,
laissez-faire economy
peaks and valleys, which in
past have tended in natural
ways to cure themselves.
The ills
of a planned economy are dislo¬
cations which perhaps can never
are
the
An attempt to cure one
lutism"
is
to
see
Just be¬
far ap¬
who detest absolutism.'
members
the
cause
so
pointed have been well-meaning
sincere, is the public for¬
and
getting Mr.
Frank's warning,
it going to
be alert at the time it
is
or
should be?
others.
is likely to create a dozen
The Government,
in
many
departments, is
making studies of post-war possi¬
bilities.
We must not again make
also,
the mistake that was
made at the
by de¬
the depression
of
ceiving people into believing
administered
the
"Take
of
group
measures
that many of dealing with welfare and social
social objectives sought by the
security.
Over a long period of
that
be obtained by. spend¬
Courage
predominate
and not helpr
and
are
beneficial in
pur¬
it is too early yet to
the
ultimate
conse¬
quences of
the particular cures
applied.
We know for a cer¬
tainty that in many instances laws
were
hastily and poorly drawn,
and the administration of them
was
arbitrary, capricious, puni¬
tive, personal and contradictory,
rather than legal.
Frequently, on
pose, but
appraise
years, as a
an-
these
of
result of the operation
measures,
will
man's
energies be released for creative
effort
will
or
want
don't
I
in
and
wisdom
of
centers
power
the
to
guard "against
backward.
They have
to
do with changes which are
still in the making.
Just because
a change is under way we should
not take it for granted automati¬
evolving
of
see
economic
governmental
policy, the more I trust the auto¬
matic forces of free markets. The
I
more
of
see
policy, -the
public
monetary
I trust gold.
more
(Reprints of the above address
may be obtained from the Cham¬
ber of Commerce of the State of
New York, 65 Liberty St., New
York City.)
better.'
NOTE:
son
two
Dr.
Ander¬
has dealt with this subject in
(1)
previous documents:
before
address
the
Los
Commerce
of
Chamber
an
Angeles
May
on
11, 1943 which was printed in full
COM¬
in two installments in the
MERCIAL
FINANCIAL
AND
CHRONICLE of May 20 and May
27,
1943;
(2)
CIAL
in
article
an
COMMERCIAL
AND
CHRONICLE
the
FINAN¬
of December
Reprints of these may
16, 1943.
be obtained from the
Capital Re¬
650
South
Spring St., Los Angeles, or from
the
Compa'ny,
Economists'
mittee
Fifth
on
National
Monetary
Avenue,
New
Com¬
Policy. 70
York City.
trends'' continu¬
the
industrial
ing nation, and a young
nation.
The emphasis
then was
protecting the manufacturers.
Now
that agricultural
products
are raised more cheaply in other
on
agriculture,
the world,
of
parts
too, wants protection.
1
"The nineteenth century
ment
desirability of in¬
to the
as
witnessed a
and
capital
ably
maintain
a
high national income
wealth it
have a high rate
You can. obtain a
and to create additional
is necessary' to
of production.
serious disagree¬
no
high rate of
production only
through encouraging private en¬
"Now what of the future—from
until the end of the war: the
now
transition from war to peace; and
the
various
How will
world?
post-war
the
of property
affected by the
failure of the efforts
kinds
trust be
in
held
or
success
stabilize
of the Administration to
by the re-conversion of
our production facilties from war
to peace; by our treatment of the
question of currency for inter¬
national trade; our creditor po¬
sition in relation to exports and
prices;
taxation?
imports; our policy of
there
ever
in
is
time when
a
justified, it
Credit for the much
control
efforts at
is
war.
than during
to
given
Whether
general
or
this
war
control.
price
be maintained de¬
human
behavior
extent upon
lack of confidence
and
has
not a measure of price
upon
Human
that
the last war must be
stability may
pends
tion
greatest contribu¬
bility, and the
make to world stabil¬
ity is to maintain high production
and employment at home.
For
tion
we can
such
insure
would
in
bility
the
one
internal sta¬
great creditor
the war.
nation following
expect to have
acceptable at a stable
in the world markets unless
"No country can
its currency
value
under control,
price level is reasonably stable,
its internal economy is func¬
its
and
smoothly
and
produc¬
tively. f, The abnormal conditions
that will exist at the close of the
tioning
make it impossible for
all nations immediately to attain
war
stability.
internal
well
can
behavior.
depends
to
confidence
in the
a
or
concep¬
execution of price con¬
in
afford,
Our country
with other na¬
tions, to contribute towards
habilitation of the world by
re¬
the post-war
period, threatens
to national socialism.
to lead
To
private enterprise, the
tax policy must be changed. Ven¬
ture capital must be encouragedi
People must be given an incentive
to'invest in productive enterprise,
preserve
work, and to save. This can be
brought about only by a drastic
to
reduction in income tax rates
on
corporations and individuals, and
the reduction or elimination of
gains tax. In no other
hope to maintain a
balanced budget after the war and
the capital
we
can
way
service the Federal debt.
"Many
may
national and in¬
problems
require
the transition from
more
ternational
in
solution
and the restoration
What treat¬
will be given to our large
war
to peace,
of
peace economy.
a
the
credit. To
the greatest extent possible this
should be done through private
lending, with the advice and co¬
operation of our State Depart¬
ment
ment.
how property
extension of long-term
V
:
are
greater price stability
been mantained during
large
exchange stability, if
trade is to reach its greatest
its fiscal affairs are
ously.
"If
EDITOR'S
it is for the better or
the
We should review and
that it will continue to be for
in
governments and central banks to
have any belief at all in the ade¬
quacy of their wisdom to do more
than routine things.
The more I
is
"There
We must continuously
them
reappraise
to
close
too
bility for
terprise, or through some form of
need
national socialism.
Certainly the
such
great bulk of the people we repre¬
possi¬
sent do not desire the latter.
'
"These are far questions.
We bilities. How to achieve stability
"Tax
policy can move our
is the all-important question.
In¬
cannot ignore the results that will
economy in either direction.
Our
follow from the operation of these ternal stability within nations is
present tax policy, if maintained
a prerequisite to international sta¬
at a stiff rate of interest.
been
has
it
such,
for
cally that
have
foreign
stability for a few
currencies which are, in fact, inr
ternational as well as national.
: "It would appear that after this
war the United States will be the
only large creditor nation.
As
trade to obtain
ternational trade, or as to the
crises, as in 1931.
I want
competition in
ordinary
times,
and cooperation only in crises—
I
spirit of men,
lessness and inertia.
in the
incapable Of either initiative or
responsibilty?
observe*
check.
so
must
initiative
wholly dependent that he will be
measures.
in
become
man
then in order to pro<normal flow of
the
prob¬
harmony of
trade
relationships ?
never before obtained, because of
the natural
flow of trade and
them, that they need do nothing capital. The future seems to pre-r
for therqselves.
Such an attitude sent conflicts which will be diffi¬
weakens bodies and breaks souls. cult of solution. Vj We have pro-^
duction, and capital, and liberaj
"We must never again preach
quantities of both should be ex¬
that laziness and profligacy are
ported.
Yet, outside capital will
virtues—work and saving, sins.
probably come to. this country,,
Instead we must boldly denounce
for
speculation, for investment,
such attitudes
as
unsound and
and for
safety.
Again, in the ;
again proclaim self-reliance, en¬
solution of this problem the great¬
ergy, enterprise, self-denial
and est contribution we can make is
thrift as the one sure road to in¬
to maintain a high standard of
dividual and national prosperity.
living, production, and employ¬
"Pre-war
thinking must give
ment here at home.
way to new thinking.
A spirit of
"The general assumption is that
pioneering and expansion must
take the place of defeatism and a we will end up with a post-war
debt of around $300,000,000,000,
philosophy of matured economy.
Whereas in 1776 a continent lay To service such a debt will re¬
To
before the people, today the whole quire a high national income.
Utopia may
ing and
wasting, by allowing
people to believe that the world
owes them a living, that the Gov¬
ernment will work and plan for
world lies before them.
Deal
countries
a special responsi¬
international monetary
and trade relations.
We owe it to
ourselves, and to the world, to
examine the results of the workr
during
war-time
are
justified ings of economic actions and their
only when necessary to bring consequences between past wars,
and. the j peculiarities of our po¬
about maximum production,
To arrive at a sound atti¬
"It is encouraging, even in the sition.
midst of war, to find that business tude will be difficult, for we are
still
an
agricultural-industrial
generally is giving consideration
In our earlier history we
to the problem of re-conversion nation.
from war to peace and post-war were a great agricultural export¬
labor, and industry;
otherwise the public will lose its
restraint
and burst through all
efforts
at
control.
Price rises
agriculture,
ment
as
planned
be cured.
evidence of this
an
bottom
essential, but that govern¬
'is always at any moment
laissez-faire r economy.
a
The ills of a
is
laws is
to it that ad¬
ministrative officers are the right
for
stands
we
sense
New
that
assume
may
search
I want to
ard
has
Neither
this
influence
France got into
plan
the
that
those
Deal' has been
"The term 'New
other
role in the earlier period.
a
ance
may
pre-war
played
has
it
worked well, but that is no assur¬
or corrupt,
government becomes a dan¬
ger to the citizens'; and that the
take, we believe there will be a way effectively to prevent the
real
place in it for the trust ^abuse of power is to see that
Whatever
protected.
are
form
Now;
London international monetary coopera¬
It pro¬
had far less control and respon- tion in ordinary times.
sibiltiy prior to 1914 than New longs unsound tendencies, as in
York
did
after
1918,. and that 1924-29, and then it breaks down
the
effect
against the use of subsidies
lack of con¬
fidence.
If control
is to keep
gress
that
inter¬ lazy, ignorant, careless
duty to see to it that their
ests
York
wisdom.
London's
in
been
a
and
which we think prosecution are a potential 'men¬
those we think ace' to citizens.
He added that opportunities.
adopt those parts
,1918, the gold stand¬
failed
ard
brief period
ance
may guarantee to man may
opportunity.
The responsi¬
bility for translating that oppor¬
tunity into progress rests .fairly
and
squarely upon man, indi¬
New
myth widely current
which I wish to challenge.
It is
on
In the
has
permit
sincerity of price control administraton.
The revolt of Con¬
"The threat of
the
"Sterling Standard"?
that prior to
"Take the insurance of bank de¬
posits.
,
loss of confidence in the honesty
I, "We can all agree
Was the Old Gold Standard a
There is
power.
be
discarded
commodities
there has been abuse
tion
the
of
means,
public should be lulled to
sleep by the experience of the
few years in which deposit insur¬
on
business.
control
the
of New, this
Co.
Trust
Guaranty
the
York, at the opening on Feb. 8 of
the
25th
Midwinter Conference
British Empire?
The
Keynes
plan, moreover,
definitely suggests international
within
theory that the end justifies
Division of the American Bankers
Association and
hang together ill support of sterl¬
ing
the
of
standard Uand
v
control is attributable largely to a
,
funds, which means, as
Keynes himself recognizes,
the
control
of all foreign exchange
transactions.
Now here, I think,
we find real difficulty. Who shall
coerce
the coercers?
Who shall
exchange
1944
with inadequate gold
reserves to tie their currencies to
those based on gold.
It would be
; • '.v
thus far.
efforts
(Continued from first page)
(Continued from page 613)
their
r"'/■'■
break in price
has .rewarded
that
success
Banker Prescribes For Our Economic Ills
Currency
of capital
at
Thursday, February 10,
THE COMMERCIAL & FINANCIAL CHRONICLE
614
achieve
"To
internal
international
and
stability
sta¬
exchange
method yet devised is
so
easily operated,
so far as we know,
as the inter¬
national gold standard, with free
coinage
of gold, free markets,
bility,
no
sound
so
private
or
ownership
for
domestic
of
the
for¬
our
huge merchant marine?
one can foretell
in trust will be in¬
fluenced by the development of
solutions to these problems, but
"Certainly
just
as
no
certainly
trustmen
must
keep themselves as well informed
as
the means available to them
will permit.
"There
are,
approximately
gold,
for
dislocations
trusts, in numbers, produced less
into
use
and
and
shipment abroad.
"Because
and
eign air bases, to our enormous
industrial plant capacity and our
2,800 banking institutions in the
country engaged in trust business.
A study made two years ago re¬
vealed
that about
60%
of the
of gold,
convertible
currencies
both
industries
aviation
$1,200
in
income.
brought about by the war it may
than
This shows that trust institutions
of maintaining
impossible to bring about an
immediate return to the free gold
conditions that raise
standard
trol.
On every front
agencies
charged
Government
wTith the duty
price stability face
questions as
to whether they can continue to
show the considerable measure of
be
all nations.
In¬
stead
it
may
be necessary for
some nations to establish the gold
among
serve
means.
many
persons
of
small
As trustees, we represent,
thousands
small
year
a
and
of
large
beneficiaries
of
who
are
means
•
(
Volume 159
Number
4254
THE COMMERCIAL & FINANCIAL CHRONICLE
Offering
Urges Merit Rating tn Levying
II. Y. Unemployment Insurance Taxes
Trusts
list
York.
Electric
of
which
does
not
for merit rating.
"The
result," he said, "is that a business
in
New
York
with
record
a
employment
now
not
to
The
General
party to the
Chicago,
^
have
the
a new study relating to
City's offer of $94,000,000 for
the Chicago Surface and Elevated
Lines
and
discussing
will support
earnings
offer.
Copies
of this
whether
a
higher
ELECTROCHEMICAL
Electrochemical
registered
tive
50,000
shares
Copies of this chart
had
be
the
from
firm upon
re¬
&
(Special to The Financial Chronicle)
,
i
SHEBOYGAN, WIS.
M.
has
Metscher
the
—
Broadway,New; York City;
120
caustic soda,
been
added
to
Brand
&
York
Copies of this
J.
interesting tabulation
may
from
Walter
of
staff
Company.
of
bondholdings of the New
City banks.
request.
the firm
upon
be had
by
Proceeds—Of
705
will' be
the
net
trust
voting
of
applied
certificates
40,000 shares
share, of
for
$5
par
'
;
corporation,
to
of
Eastern
&
preferred
ing
to
stock
of
balance
the
at
$105
net
20, 1944, with the right
the trustees and holders
certificates representing a
years from Jail.
in a majority of
of
March
to
not
date
a
the
extend
later
than
proceeds
will
be
S-l.
first
outstanding
corporation.
Registration Statement No. 2-5292.
(1-22-44.)
Form
.
Florida
■500,000
i Jan.
1,
first
197.4,
Corp.
•
State
line
connecting
facilities
of
>
with
Georgia
supplied
by
statement
19
filed
the
ful
bidding
Commission's
bidder
will
Rule
the
name
.;!
Proceeds—Company also
Success¬
rate.
to
proposes
-
amount
ceeds
Co.
of
of
Boston
3%%
from
serial
of
sale
$4,000,000
organized, and many of whom
cannot well speak for themselves.
Many
of
them'
are
widows,
orphans, minors, and incompetents.
substantial number
bonds
and
As
their
are
in the
trustees,
serial
de¬
North
Chicago,
and
each of
&
the
them,
&
of
the
be
to
each,
.
it
firms
all
94,439
shares
at the rate of
of
business
share for
one
18,
Feb.
on
17,
will be
warrants
1944,
be
of
such
'inventories,
to
increase
1944.
be
will
Sub¬
for
Avenue,
chain
a
named
are
Other
New
of
be
in
which
which
to
the
cash
$480,800
public
l,
of
$7
the
per
and
the
(2-3-44).
the
interests
beneficiaries whose affairs
of
the
are
in
due
first
Corp.
Dec.
1,
Public
$2,300,000
serial
1966,
mortgage
at
Service
104%;
Co.
Florida I Public
debentures
$730,451.
Corp.
added
the
to
and
be
v
especially
4s,
Series
$5,148,400
first
mortgage
and
On Jan.
for
Service
other
4%%
purposes
14, 1944, Florida Public
as
were
Sanford Gas Co., affiliated
merged
into
a
Florida
sub¬
Power
the continuing corporation. Com¬
waukee,
shares
of
to
Amendment
Central
be
to
are
supplied
to
Proceeds—Will
purchased
N.
Y.,
Fenner
to
added
U-50.
be
'
by
Offering—Immediately prior to the mer¬
Engineers Public Service Co. will acquire
General Gas & Electric Corp. all of
the 782,000 outstanding shares of VPS and
claim
of; General to $1,165,166 held in
escrow, for an aggregate consideration of
$2,500,000, of which $1,500,000 is to be
paid
in
installments
contingent
upon
specified earnings of, the merged companies
within five years from the merger date.
If
and
when
the merger plan becomes effec¬
each share of VPS 7% preferred and
6% preferred, including all rights to
accrued
verted
and unpaid dividends, will be con¬
into
1%
shares
of
preferred
of VPS 7%
new
in
and
addition, each share
preferred will receive $5.50 in cash.
the
be
782,000 shares of
converted
preferred
share
cash
the
common
150,000
of VPS will
shares
of
com¬
stock of Vepco.
mon
old;
into
All of
of
for
will
preferred
new
accrued
merger
Each share of Vepco
be converted into one
date.
and
and
unpaid
The
will
of
common
it
supplied
sale
dend
ing
rate
the
on
preferred
Proceeds—Net
as
additional
be
may
stock.
proceeds,
amounts
required,
to
and
Registration Statement No. 2-5293. Form"
will
(1-24-44).
' V-.ry the
A-2
also., $5;000,000
of
notes,
and
fnake provision for the redemption of
outstanding $26,000,000 face amount
_
000 0face
ELFUN TRUSTS
trustees
posed
Trusts
20,000
representing
aggregate
units
a
offering
of
of
VPS
debentures.
-
pro¬
Lexington
,
bank
loan
Avenue,
New
SECURITIES, INC.
Group Securities, Inc., has registered 5,-
000.000 shares
company.
Underwriting—None named.
putation
cent
per
of
($50,000,000 value for
fee),
share.
of
a
par
value
of
com¬
one
the
controlled
be
Public
the
received
Electric
by Central Illi¬
has petitioned
exemption
an
stock
Utility
No portion of the
the common stock
from
requirements
of
thai;
in order
at negotiated
public
offering.
in the
purchase
market of Con-
open
bonds.
own
Illinois
amendment
Electric
on
Jan.
&
25
Gas
Form
Its
to
Co.
filed
registra¬
with proposal
Consolidated Electric & Gas Co.,
of
000 shares of Central Illinois
with
will
the
parent
company, to offer for sale pursuant to the
Commission's competitive bidding rule 400,-
stock.
mon
Names
ing price to the
filed
be
of
original
Electric
underwriters,
public and
post-effective
by
1 In its
com¬
offer¬
spread will be
amendment.
filing
Consolidated made
provision for the sale of the stock and
subsequently asked fche Commission for an
exemption from the
competitive bidding
no
first
mortgage bonds, Series C 3%. due
April 1, 1956, at 104%,, total $21,076,815;
payment of $3,500,000 bank loan; redemp¬
tiated
to
of
58,000
shares
of
$5.50
rule in
of
$3
840,
convertible
will
convertible
verted
be
into
reduced
prior
common
to
the
extent
preferred
stock
before
is
on
ruling
preferred stock, $50 par, at $55 per
or
$5,008,025, grand total $35,964,amounts required for such pur¬
poses
to
distribute
held
sell
ing
for
the
the
was
the
stock
at
a
nego¬
stock.
A
application,
heariiig
but
no
has
sale
of
amended
the
its
stock
at
plan provid¬
competitive
bidding.
the
Registration
con¬
the
the
EWT
re¬
of
on
Feb.
statement
4,
effective
4
1944.
1
demption
date.
If
no
conversions
was
formal
entered by the Commission and
Consolidated
The
$5.50
order
sale to the Central Republic Co. of
Chicago which planned to head a syndicate
prior preferred stock at $110 per share or
$6,380,000 and redemption of 91,055 shares
share
GROUP
City.
Business—Investment
Registration Statement No. 2-5297. Form
S-l. (2-1-44).
price
to the public of $2,100,000.
Address—570
amount
outstanding $10,500,-
Purpose—-For merger and refunding. )
registered
certificates
maximum
new
a
sell
a
tion
of VPS bonds and the
Elfun
new
of
of
(1)
tion statement in connection
from
the
proceeds
turn,
bidding
can
an
applied to redemption purposes as follows;
$16,500,000 face amount of first mortgage
bonds, Series B, 3%%, due Aug. 1, 1955,
at 104% and $3,678,000 face amount of
Vepco will
issue
and
sell
$24,500,000 face amount of Series D bonds,
in
Registration Statement No. 2-5272.
(12-20-43.)
$6,500,000
obtained
(b)
will
Central
Offer¬
together
up
and
Gas
of
S-2.
subject to
prices of both bonds and stock will
supplied by post-effective amendment,
such
is,
Commission's Rule U-50
the
by
preferred
new
for
&
all
Proceeds—Consolidated plans to use the
proceeds to retire Federated Utilities, Inc.,
5%% bonds, and to apply the balance to
the competitive bidding requirements of the
Commission.
The
successful
bidder
will
name interest rate on the bonds and divi¬
be
11
solidated's
and
of
sale to
Central Republic Co., an investment firm
of Chicago, which firm subsequently would
en¬
gas.
offered
Electric
owner
competitive
the
;■
to be
utility.
stock of Central Illi- y
common
for
make
tributing natural
are
Rock-
Street,
public
Commission
the
dis¬
Offering—The bonds
beneficial
Consolidated
the
Avenue,
Business—Operating
public
utility
gaged in producing, purchasing and
be
represent
Central
registered
regis¬
Tulsa, Okla.
Underwriting—Names to
post-effective amendment.
not
Main
North
Consolidated
nois.
has
Boston
issued
already
does
.
Holding Company Act.
proceeds of the sale of
preferred stock, Series A, cumulative,
par value $50 per share^^^S)-;'.';-''::'
i .
stock
the
Section
of
South
is
400,000
value $15
Public Utility Corp., a regis¬
holding company.
The stock regis¬
tered is being disposed of by Consolidated
in
compliance
with
the
provisions
of
first
mortgage
bonds
1, 1961, and 180,000 shares
Address —624
for
■
Is
by
$18,000,000
series due April
receive
dividends to
shares
tered
stock
and
has
Co.
Gas
par
tered
general
CO.
Co.
stock,
financing.
outstanding
:;
Gas
The
outstanding
&
statement
Offering—Consolidated
,
Natural
to defer
Underwriting—To be applied by amend¬
SATURDAY, FEB. 26
Oklahoma
1944,
ELECTRIC & GAS CO.
Electric
Business—Operating
&
filed
the
to
OKLAHOMA NATURAL GAS
,1
a
-
28,
Form
originally
ford, 111.
Registration Statement No. 2-5301. Form
(2-4-44). '
.-V.:-:-M'v-:v ,"' W'
0V0- 0•
L-'iV .♦»"0;:- v v*
;
■
competitive bidding under Commission's
ger
Jan.
common
Address—303
by
20,-
stock of Vepco now outstanding will remain
MONDAY, FEB. 14
of
nois.
public
be
funds of the company.
offered
be
filed
Illinois
share.
per
and
'
2,500.
and
■
registration
a
shares
underwriters
be
Inc.,
Pierce,
Lynch,
loans
Registration Statement No. 2-5273.
S-l.
will
each
100.-.'
bank
r(12-20-43.)
Statement
filed in San Francisco.
amendment.
& Power Co.
Both companies are
operating public utility companies.
of
mustard
S-l.
new
Names
—
Offering—Price
issued
be
proposed merger of
Co. into Virginia
wholesale
effective date,
outstanding.
is controlled by General Gas & Elec¬
Corp., which is part of the Associated
Gas & Electric Corp. system.
;V.y
1
»-
3 % %,
Los
proc¬
v
tric
York
"
re¬
of
underwriters,
retire
working capital.
'
.
Blyth & Co.,
Merrill
Avenue,
prepared
named
are
Proceeds—To
of hardboard.
follow:
con¬
:
at
extracts,
CENTRAL ILLINOIS
number of
preferred
such
business
Offering—Price to pubic,
working
available
pany
aggressive in
their behalf."
to
are
v-:;
filed
Underwriting
of
due
.
be
company
Address—Hi West Washington Street,
Chicago, 111.
Business—Engaged in the manufacture
1974.
securities
tea,
•
sale
prior
Traction
value.
and
D
11,400
purposes
a
5%
1943.
■
.
Corporation has registered 60,790 shares of common stock, without par
Address—7th and Franklin Streets, Rich¬
mond 9, Va.
VPS
'We should not hesitate
to be articulate and
series
and
the
filed
of
having agreed to purchase $150,000 of the
debentures at 92%%, or a total amount of
$277,500, ;;
■-//;v:
aggregate of 20,000 shares
v
for
series
Underwriting—Pacific Company of Cali¬
fornia,
and
Wyeth & Co., both of Los
Co.
at
Form
to defer
spices.
Francisco, 6,000: Central Republic Co., Chi¬
cago, 4,000, and Milwaukee Company, Mil¬
bonds,
1951,
Angeles,
Masonite
,,
Bonds
1944,
ol
entitling the holders to purchase at
of
statement
debentures,
for
coffee,
com¬
total
a
ment.
amendment.
'•y
•;?
14,
Business—Engaged in
essing
and
marketing
and Lehman
Brothers/ both
of
Y.,
10,000
each; Wisconsin Company,
Milwaukee, 7,500; Dean Witter & Co., San
the
of
j'
i:
all
Address—800-812
Angeles, Cal.;
by
WEDNESDAY, FEB. 23
com¬
$24,500,000 first and
Service
balance
has
Feb.
under¬
is
proceeds to
exclusive
MASONITE CORPORATION
present
may
expansion of the
with
unpaid
$300,000
N.
Public
of
convertible
Beane,
connection
an
BEN-HUR PRODUCTS, INC.
Ben-Hur
Products,
Inc.,
790;
Business—The
is
registration
Virginia Electric & Power Co. has regis¬
tered 305,192
shares of $5 dividend pre¬
in
serial
no.go-43.)
each
Virginia
mortgage
;
Registration Statement No. 2-5300. Form
S-2.
of
SUNDAY, FEB. 20
April 1,
there
Amendment filed Jan.
effective date.
VIRGINIA ELECTRIC & POWER CO.
due
unpaid
-v;..y; y
imount
retail
supplied
general corporate purposes,
the opening of additional stores.
and
mortgage
and
trust, securing the
the
notes
outstanding by
10%,
leaving,
after
such
of
reduction
principal, an aggregate first mortgage in¬
York
26
principal
for
liabilities,
Some
with net
of
capital
funds
%
and
the equity
in■
subject to the
own
of
Registration Statement No. 2-5282.
states
will
names
Proceeds—Will
(1-31-44).
stock
deed
C-'.-.Offering—Purpose of present offering to
the, noteholders is to reduce the principal
development
of common stock,
1944.
Registration Statement No. 2-5296. Form
S-l.
Eighth
$7 per share an
general
the
of
Some
pany's business.
which
5-1
southeastern
York,
rants
be¬
transferable
to pay current
bank balances.
the
-
St.
Underwriting— None.
$2,000 to be received by the company from
the proceeds of the sale to the underwriters
at ten cents per warrant
share, of war¬
.
for
and
Apartments
540,500.
time
CORP.
Offering—Price
specific alloca¬
pending
opportunities
Avenue,
the
version.
pany
manufacturing facilities.
One of the pur¬
poses of this financing is to provide the
company; with; funds with which to meet
themselves
of
on
make
women's
and
misses'
popular
wearing apparel, coats, suits, lin¬
hosiery, hangbags, etc.
Underwriting—Van Alstyne, Noel & Co.,
the funds may be used at some future time
to provide for expansion of the company's
post-war
the
on
par value of $267,000 which,
plan of reorganization, are to be
reduced by 10% to $240,750 of
par value,
and on outstanding second deed of
trust
sells
share,
each
exerciseable
available
funds.
trust
the
shares,
being
are
be used to carry additional receivables
and
six
writer.
by
share,
and
In
New
of
the .company to the holders of
its common shares, for subscription at $45
may
and
of
.
McPherson
acquire
by
amendment.
Offering—The
a
notes
priced
Chicago.
offered
to
time to
to
mortgage
gerie,
purchased by
follows: A. G. Becker
as
STORES
stores
unsub¬
25%
exploration
Business—Operates
under¬
the
are
Co.,
expects
deed
;
outstanding
City..
Co., Inc., 50%; F. S. Moseley & Co., and
Shields
$2,298,000
acquired by Phillips
company
of first mortgage serial
Realty Co., secured by a
Housam
Ranelagh
first
1943, from the Columbia Oil
New York.
From work¬
Address—519
manufacture,
names
shares
the
Corp. has registered 80,000
shares of common stock, par value $1
per
pharamaceutical,
percentages of
common
added
for the purchase of 202,163
stock
of
Panhandle
the
offering
Business—Apartment building.
'Amer¬
Realty Co. was incorporated July 21,
1943,
company.
for
:
regis- :>
a
ican
group of
the
CO.
share.
the
of
Underwriting—The
tive,
Power
ns.
Louis, Mo.
common
capital
extension
mortgage
Address—5707
in
Diana Stores
>
111.
in
sale
and
scribed
bentures, together with other funds of the
to the extent required, will be
applied as follows: To the redemption of
the following securities:
$11,000,000 Flor¬
we
right and responsi¬
bility to oppose unsound legisla¬
tion, and to support constructive
care.
Pro¬
company
have both the
our
sell
face
debentures.
to
Ranelagh
Apartments,
5707
McPherson
Avenue, St. Louis, Mo., in the aggregate
principal amount of $240,750.
sup¬
applied
a
the
of
.
be
REALTY
first
TUESDAY, FEB. 22
common
from
privately to John Hancock Mutual Life In¬
surance
Service Co. and
not
in
post-
requirements
U-50.
interest
companies, and Sante Fe Land Co.,
measures
for
Gasoline Corp.,
DIANA
medicinal, chemical, biological and vitamin
products.
Rule
of
unknown
are
notes
the
group,
the balance will be
Pipe Line Co.
regis¬
a
94,439
Underwriting—Names
competitive
Issues
debtedness of $240,750.
has
for
Business—Engaged
amendment.
the
der
cf
American; Realty Co. has filed
statement relating to the
work on oil and gas lands and the installa¬
tion of refining and processing
equipment.
Registration Statement No. 2-5299. Form
S-l. (2-2-44).
Address—Fourteenth Street and Sheridan
by
sidiary,
services.
of
involving
Electric
be
4s,' Series C, due 1955, at 102.90; $1,622,000
Power 3% % serial debentures and
;
A
the
Power
Florida
has registered $16,-
mortgage bonds series due
Interest rate will be supplied
by amendment.
-
utility operating wholly
of Florida,
except for
Underwriting—To
Florida
FEB. 12
CORP.
POWER
Power
St.
Co.
C,
HT*;i SATURDAY,
FLORIDA
.
will
substantial expenditures from
added
(1-20-44).
SATURDAY, FEB.
used
were
March 30,
on
The
capital.
Registration Statement No. 2-5295. Form
ida
the maturity date of the
mortgage bonds of the
1959,
1,
to
securities
the
termination
F-l.
>
share.
per
working
bids for the purchase of bonds from it un¬
electricity.
Offering—Immediately following the ef¬
date of the registration statement.
Purpose—To form a voting trust for five
trust
South,-
or
AMERICAN
supplied by amend¬
working capital of
prbceeds of two loans
shares
$2,298,000, at 102 %%, 'and $1,048,215 to
the redemption on March 31, 1944 of the
outstanding 9,983 shares of 6% cumulative
Offering—Price to the public to be sup¬
plied by amendment.
Company will invite
fective
majority
be
to
the
of
corporate purposes
City,
Bay
'
Business—Generation
voting
the
transmission
effective
Underwriting—None.
of
within
transmission
per
Power Corp.
Address —Of
Mich.
to
The
each
Proceeds—Will
■
Business—Public
Philip C. Gifford
Greenough, voting trustees,
statement
for
stock,
common
Wolverine
CORP^
registration
a
Street,
Petersburg, Fla.
Abercrombie,
P.
and Charles W.
Fifth
ilst
a
tretion
ferred
WOLVERINE POWER
filed
of others
company's first mortgage bonds, due
1952, outstanding in the principal amount
funding
Daniel
underwriting
nine banks, and
proceeds, $2,349,the redemption of
,
Address—101
OFFERING
below
present
mined
the retirement of $14,5.96,000
prin¬
amount of long-term notes payable
cipal
Offering—To be supplied by amendment.
>
tion
have
an
.
amendment.
and will expire at 3 p.m. on March 1,
list of issues whose registration state¬
ments were filed less than twenty days ago.
These issues
are grouped according to the dates on which the registra¬
tion statements will in normal course become effective, that
is twenty days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
certain foreign public authorities which normally become
effective in seven days.
These dates, unless otherwise specified, are as of 4:30
PM* Eastern War Time as per rule 930 (b)»
Offerings will rarely be made before the day follow¬
THURSDAY, FEB. 10
OF
registration statements were filed
days or more ago, but whose
offering dates have not been deter¬
subsidiaries
outstanding at Dec. 31, 1943, to
close
a
its
named
ginning Feb.
;;:yy *
the
••
twenty
Bartlesville, Qkla.
and
Proceeds—Proceeds
eight common shares held of record at the
Calendar Of Hew Security Flotations
ing.-
We
part to
scription
Following is
:
for
whose
Offering—Price to the public will be
plied by amendment.
chlorine and hydrogen. V
writers
sources
0
CO.
Underwriting—Smith, Barney & Co. head
the
underwriting group.
Others will be
mem¬
income and of United States Gov¬
ernment
Dorothy
heads
names
Abbott-Laboratories
Meeds,
loan,
company's gen¬
available
■
DATES
ment...
Principal operations involve
the decomposition of salt solution in elec¬
trolytic cells resulting in the production of
distribution
pared breakdowns of
r
York,
—
Road,
Bissell
bank
new
the
be
......
(2-7-44).
Form
an
ABBOTT LABORATORIES
bers-."of the N. Y. S. E., have pre¬
With W. J. Brand & Co.
;
has
cumula¬
Address—Niagara Falls, N. Y.
Income; Govt. Bondhldgs.
Laird,-
2-5298.
integrated unit in the petro¬
leum industry.
Underwriting—First Boston Corp., New
Business
N. Y. C. Banks Sources Of
may
quest.
t
$4.25
shares, without pat value.
cycles.
will
.
Phillips Building,
comprise
,/
iness booms and depressions dur¬
financial
No.
PETROLEUM
Business—Company
COMPANY
Company
of
preferred stock.
tration
and
S-l.
.
,
1964.
and
interesting
Security Adjustment Corpora¬
tion, 16 Court St., Brooklyn, N. Y., from Leason & Co., Inc.
an interesting chart of bus¬
business
(2-1-44).
due
have
American
and
from
and
Registration Statement No. 2-5302. Form
Phillips Petroleum
Co.
has
registered
$40,000,000 2%% sinking fund debentures,
WEDNESDAY, FEB. 16
Hooker
study may be had upon request
ing all wars from 1775 to 1944
presenting a; graphic picture of
charge.
MONDAY, FEB. 21
the
111.,
registration
underwriting
required
funds
UNDETERMINED
(1-26-44).
HOOKER
Co.; Inc., 39 South La
Street,
of
plus
Registration Statement
-
,
date
market
be
Address—80 Broadway, New York 5, N. Y.
prepared
a drain upon
industry with¬
compensating benefits to the
unemployed.
;
■
will
Proceeds—For investment.
agreement,
no
Registration Statement No. 2-5294. Form
Interesting Situation
Leason &
purpose..
At
distribution
Electric
prior preferred are made
other than those provided
securities
new
Offering—Effective
or
Gen¬
r
,
out
■
trust
convertible
additional sums,
by the
eral
statement.
hereto¬
the
$5.50
Jersey
company.'
Underwriter—Distributors Group, Inc., is
principal underwriter.
PHILLIPS
Chicago Traction Offers
act as
i
by
Exchange- Place,
named
con¬
trustees
trusts
created
Co.
a
or
the
1
.V
J.
N.
Business—Mutual investment
ing" charge is included.
4 Proceeds—For investment.
way,
Salle
Address—No.
City,
A-l.
Sutro Bros.
at
Depressions"
the
em¬
responsibility whatever for the
administration of the trust funds:
Offeringprice is determined in the agreement.
In
calculating the price, no "service" or "load¬
.
"Booms &
subsidiary
and
profit-sharing
Electric
is
S-5.
employers
to
stabilize
employment and (c) prevent the
Unemployment Trust Fund from
creating a huge excess reserve to
courage
>'■
Elfun
Reorganization Rail Data
of
pays
its
hereafter
and has
& Co., 120 Broad¬
New York City, members of
the rate of 2.7%, while a compet¬ the New York Stock
Exchange,
itor
in
Ohio
or
Massachusetts have prepared interesting circu¬
where
experience rating exists, lars on reorganization rail securi¬
pays only 1%."
ties, and arbitrages to come; copies
The
report recommended - the of which may be had from the
enactment
of a merit rating
in firm upon; request.
this state which would (a) bring
justice into the operation of un¬
employment insurance; (b) en¬
stable
and
eral
Co.
Arbitrages To Come;
provide
and
companies
certain
fore
Gwyn, chairman of the Special Committee on Indus¬
trial Problems and
Relations, which drew the report, pointed out that
New
York- is
the
only majors;
—
—
state
Co.
trolled
Lewis R.
industrial
the
in
in general, be limited to
executives, officials,
leading
ployes and former employes of the General
Enactment of legislation to provide for merit rating in the levy¬
ing of State unemployment insurance taxes was again urged upon
Governor Dewey arid members of the
Legislature in a report made
public oh Jan. 30 by the Chamber of Commerce of the State of New
•
Participation
—
will,
of
615
(This list is incomplete this week)
p.m.
England Pub. Serv.
New
IIAoover 2-0030
with
stocks
5
Markets
Firm Trading
Plain
For Dealers
Teletypc-N. Y. 1-971
.
Merrimack Mfg. Co.
pos\-war
Non-Stop Air Pick Up,
prospects in the
Common
Television fields.
Inc.
All American Aviation,
CARL MMKS
& P.O. IMC.
ABen B.
"- ;" ''
f FOREIGN SECURITIES '
'
•
Harvill
SPECIALISTS
======
AFFILIATE: CARL MARKS
en. s. wieh & Co.
Corporation
Members N. Y.
25 Broad
New York 4, N. Y.
50 Broad Street
Majestic Radio & Television Corp.
& CO. Inc. CHICAG0==^=
& Rubber
Pfd.
4V2%
Appliances, Inc.
DuMont Laboratories, Inc.
Pfd,
&
Common
Firestone Tire
Bendix Home
■
& Pfd.
N. H. & Hartford
N. Y.,
Old
BRAZILIAN BONDS
Pfd. Stocks
.
.
Laundry, Electronics, Die Casting and
Home
1944
Thursday, February 10,
COMMERCIAL & FINANCIAL CHRONICLE
THE
G16
Security Dealers Ass'n
St., N.Y.
Teletype
N.
2-8780
HAnover
1-1391
Y.
Trading markets and Information on request
UmMm Mq Will Handicap
:;;. Small Easiness 'IllllilllS
How NASD Profit
(Continued from page
and
the NASD
profit limitation rule?
price
in
when
there are
ready
to
opposed to democracy
private initiative than
.15%
gross
This rule when
any
enforced (if it has
predictable effect at all) will
the practical elimination of
open market for small issues
Over-the-counter
dealers will certainly not care to
take
the risk of ownership of
t
many
issues of the
small
or
securities of
local; concerns
the open
if their
profits are restricted. The
logical and expected outcome of
the NASD rule, if enforced, will
be
the
gradual elimination of
small dealers in inactive and local
.securities. Thus, many holders of
inactive securities will find that
their holdings will be as difficult
to dispose of, and have as uncer¬
tain marketability as petty par¬
cels of country real estate, since
there will be no dealers or "spe¬
cialists" who will make a regular
gross
"Sugars—As We See Them"
can
buyers only by
drastic
concessions and may find
themselves unable to liquidate at
view
In
<
of
current
of capitalistic pro¬
duction, the creation and expan¬
a severe
blow to invest¬
securities of small or
local business concerns.
•
to
,
,
without any addi¬
tional handicaps, the problem of
maintaining and supporting
business concerns
small
during the post¬
readjustment period will be a
serious one!
Unless every practi¬
war
cal
means
and
forthcoming, many
which subsisted
Government contracts, either
assistance
local
on
of encouragement
is
businesses,
production
quota fixed by
and
will
decree,
Government
probably be exceeded.)
2.
buostantiaiiy
per
directly
or
as
to
the
investors
in
inactive
and
the restrictions born of the
Secur¬
ity Acts are relaxed, and unless
the handicaps placed upon small
business in obtaining capital from
Realty Issues Interesting
Hill, Thompson & Co., Inc., 120
Broadway, New York City, have
country.
sold
of small business con¬
if their securities were
given full loan collateral facili¬
ties. But this can be accomplished
cerns,
only when there are dealers who
willing at all times to make
are
bids for such
securities, and the
closure
industry
rule
on
which
investment
would compel
the
dealers to reveal the inside mar¬
Broker-Dealer Personnel
Calendar of New Security
Items..... 598
Flotations 615
Securities
Trusts
Municipal News and Notes
Our
Renorter
Utility
on
Governments —
Securities,... v..,....
Securities.,..V;...
Estate Securities....
Railroad
Real
price
(same as wholesale
price in other lines of business)
before doing business with a cus¬
Security Salesman's Corner..
Tomorrow's Markets—Walter
tomer.
606.
ket
598
.....
Reporter's Report,
Public
Says
*See
•
•
>
*
under
,
Members N', Y. Security
Ptne-Street,
30
Cur¬
Dealers Ass'n
New York 5
Tel. WHitehall 4-7970
rent and Post¬
war,
'
United Public Utilities
Tele. NY t-2218
the
at
January meet-
ing of the
Cleveland
Specialists In
t
Trea s urers
Club. "Think¬
MINING
ing," said Mr.
Dively, "must
be
done
in
of
namic
produc¬
a
tion
economy.
The
advanced
of our industrial economy
recognized and policies
stage
be
must
adapted
to
business-like
some
accounting ex¬
crossroads of
financial
"The
at the
sits
42
BROADWAY, NEW YORK 4, N.Y,1
WHitehall
effectively
NY
•
1-110
Electro!, Inc.
Remington Arms
of
corporate plan
practical overall- busi¬
Select Theatres
philosophy must envisage a
South Shore OH
A
action.
ness
4-2968
has a functional re¬
sponsibility to aid and influence
management in development of
an
Dealers Assn.
of
detailed knowledge
the facts, he
CO:
HUNTER &
activity.
practically all corporate
Due to his
CORRESPONDENTS IN
PRINCIPAL MINING CENTERS
Members New York Security
government guide.
ecutive
Inquiries Invited
dy¬
terms
George S. Dively
ISSUES
DOMESTIC & CANADIAN
of
correlation
workable
funda¬
y'v
factors.
nomic
Southwest Natural Gas
social, political and eco¬
mental
the
planned war program is
.Venezuela Syndicate
present
about ten
of
size
"The
end
that
of
the
cancellations
war
50
Broad Street, New York 4, N.
Y.
Telephone HAnover 2-4341
materials alone
will
$25,000,000,000
to
at
the
amount to
may
The
$75,000,000,000.
MORRIS STEIN & CO.
Over-the-counter Securities since 1924
War, It is esti¬
of the first World
mated
at the end
those
exceeded
have
already
cancellations
contract
War
War I.
times that of World
disposal
likely
be
of
a
Our
Recommendation for
February
$40,000,000,000
job.
and every
month until Victory
"The broad and basic post-war
problem
is
to
supply, after the
War Bonds
607 pent-up demand for civilian goods
Canadian
Investment
Our
Financial
Policies,
National Gas & Electric
L. D. SHERMAN & CO.
Acco untin g
spite of higher wages and taxes.
In some cases this reduction will
Derby Gas & Electric
General Pub. Util.
;V:
Industrial
o n
V
V
address
an
the increased
as
holders
nancing
In
costs will result from
1944 production in
operating
'
Seybold-PotCompany.
bag
<
Consol. Electric & Gas
ter
-
lower
~
Community Gas & Power ;
•
Harris-:
the
■
Power
Citizens Utilities
:
1943—2,879,464 long tons;
be over was presented as a dan¬
(c) 1944—4.250,000 long tons.
gerous
pastime • by George S.
(The 1944 figure is the mini¬ Dively,
Secretary - Treasurer of
'
Security Dealers Ass'n
Amer. Gas &
(b)
mum
Y.
W-f : Amer, Util. Service
'?yy
Birmingham Gas
And Financial Policies
Certainly,
N.
Exchange PI., N. Y. 5, N. Y.
Phone DIgby 4-1833
Teletype NY IV 1-1779
40
Industrial Accounting
And precisely the same result
over-the-counter j
of stocks and will follow, only to an intensi¬
bonds listed on security exchanges, fied degree, if the SEC imposes
their so-called bid and asked disv
so it would greatly assist the fi¬
securities
Members
issued
detrimental ef¬
private investors and from the in
preparation
an
interesting
fect of the profit limitation rule
banks, by the enforcement of re¬ memorandum discussing the cur¬
on the securities of small business
strictions
on
security
dealers'
rent situation in U. S. Realty and
concerns.
I refer to the use of
profits are removed. If the NASD's
local and inactive securities as
Improvement 6s and Fuller Build¬
5%
gross mark-up rule is
en¬
bank loan collateral. Such securi¬
ing 6s. Copies of this memorandm
forced,
the evils
of industrial
ties have been acceptable as col¬
may be had from the firm upon
monopolies will be intensified and
lateral by local banks when overrequest.
the position of "small business" in
the-counter dealers furnish a con¬
the
present economic structure
tinuous market for them.
The
INDEX
will be substantially worse than
availability of securities as bank
Page
ever before in the history of the
collateral is as important in many
Bank and Insurance Stocks........ 605
There is another
cases
S. H. JungerCO.
securities, Dunne, & Co.;- 25
an interesting
bulletin
and its
have
sub-contractors, approximate as much as $1 per
during the war, will be forced out
bag below 1943 costs.
sion of business undertakings is
of business or be merged into the
3. Current negotiations in Cuba
largely dependent on access to the
larger
corporations. This hap¬ for molasses and alcohol are pro¬
capital markets for funds. The in¬
pened after the last war when a gressing favorably.
It is antici¬
dividual
investors
who supply
new
era
of industrial combina¬
pated producers will be paid 15
these funds are constantly chang¬
tions came about and new (and in
cents per gallon and 90 cents per
ing their holdings, so that the
many
cases
unsound) mergers gallon, respectively^ for black¬
marketability or "liquidity" of in¬
were financed through public of¬
strap and industrial alcohol.
vestments is a prime factor in the
ferings of their securities.
Thus
4. Corporate
earnings *" may
creation
and maintenance of a
Mr. Dexter S. Kimball, writing in
readily top those of 1942, which
capital market. Ask any security 1928 in the
"Report, on Recent was a big year,
salesman, and he will tell you that
Economic Changes" regarding the
5. Porto Rican sugar producers
the point of greatest sales resis¬
increase in industrial mergers, re¬
should enjoy a good year despite
tance in distributing small issues
marked that "the present mergers
somewhat
smaller
production,
of securities is their limited mar¬
are unlike those of the great com¬
due to successfully negotiated mo¬
ketability.
An investor does not bination
period at the end of the lasses contracts.
;
buy a security like a housewife 19th
Century." In the earlier in¬
6. Porto
Rican production in
.buys a washing machine, merely stances,
the
incentives were 1945 should be no less than that
to use it until it wears out and be¬
usually either the formation of a of 1942. Larger shipments of fer¬
comes worthless, and without any
monopoly or profits of some pro¬ tilizer during 1943 will account
concern regarding its resale value
moter. The present mergers often for
this.
Substantial corporate
at a future date.
Investment, like
appear to be quickly followed by earnings may be anticipated.
all forms of savings, has back of
new financing, this implying that
7. Various types of indebtedness
it, what Professor Keynes calls the desire
for additional capital is of producing companies have been
"the liquidity concept," i.e., the
an
important motive(Recent sharply reduced during the past
power to convert the commitment
Economic Changes in the United few years.
In some cases there
back into cash when desired. Mar¬
States, 1929, Vol. I, page 217).
remains
nothing ahead of the
ketability and "safety of princi¬
Important divi¬
This situation should be avoided common stocks.
pal" are twin requisites to all
dend payments, and interest and
in the coming post-war period!
sound investments. Place any re¬
There seems, however, little like¬ principal
payments
on
bonds
strictions or limitations on mar¬
lihood that small
business will (where companies are operating
ketability, such as are encoun¬
under
the
Cuban moratorium)
tered under
the dealers profit fare any better than in previous
readjustments, unless may be expected.
limitation rule of the NASD, and post-war
deal
Inquiries invited
industry
developments affecting the sugar
Broad Street, New York City,!
on the situation, prepared by:
J. William Kumm.
In this bulletin, copies of which may be ob¬
all.
Now,
if
dealers,
whether tained from Dunne & Coi upon request, the writer offers the follow¬
specialists or not, because of
ing points for consideration:
>'
*
J
"mark-up" restrictions, find it un¬
1. Sugar production in Cuba for<^
profitable or too risky to make 1944 will exceed that of 1942 and
a
market' for inactive securities,
top that of 1943 by no less than
small business concerns will be
40%, The following are Willett &
further handicapped in the strug¬
Gray official production figures:
gle to obtain funds in the capital
(a) 1942—3,396,900 long tons;
Forecasting when the war will
market.
', !.
In these days
ment in the
OR
1-576
yore
new
MUTILATES
If this condition
price
market for them.
you
Teletype
Bell
market only
exist, then holders
BONDS WITH
COUPONS MISSING
5!;.
YORK
telephone
Enterprise 6015
2-3600
RECTOB
Association
York Security Dealers
STREET :• N EW.
philadelphia
telephone
take up offerings at a
price.
not
New
BIDS MADE ON
V".; v
'
buyers on hand
obtain
securities.
of
t
can
quoted
does
mean
an
Members
NASSAU
4 5
595)
bids.
accompanying risk-taking
be stifled," what could be
more
INCORPORATED
place reliance on the
A security will maintain a
banks
with its
will
Kobbe, Gearhart & Company
has
been
606
601
600
more
If private
59.9
598
609
Whyte
597
"Mutual Funds" on page
jobs
satisfied,
than
at
least 20%
before the war.
enterprise does not do
this, then the government will.
requires a realistic recognition
the
seriousness
of
the
confronting business."
It
of
problem
Hill, Thompson & Co., Inc.
Markets and Situations
120
for
Dealers*
Broadway,, New York 5
Tel. Rector 2-2020
Tele. NY 1-2860
@FedFRASER