Full text of Commercial and Financial Chronicle : February 11, 1943, Vol. 157, No. 4150, Section 2

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Price 60 Cents

York, N. Y., Thursday, February 11, 1943

New

Number 4150

157

Office

Pat.

S.

U.

llcg,

Volume

In 2 Sections-Section 2

ESTABLISHED OVER 100 YEARS

Edition

Final

The

Pay-As-You-Go Taxing Feasible?
By GEORGE V. KRACHT, CPA,

Consultant to the New York State

Department of Audit and Control, and CHARLES A. HARMON,
CPA, of the firm of Meech, Harmon, Lytle and Blackmore, N. Y. C.

•

the President gave his en¬
basis of taxation, "as far as feasible."

annual message to Congress,

his

In

dorsement to the pay-as-you-go

perienced taxpayer supposes.
; ; ; .. /
.
.; ,,
.
v
In this article, the authors examine the obstacles that stand in
way of a real current payment plan and the conditions under
.

The

income taxes

coun-1 • It is now proposed to change
the basis | this system; to shift to a pay-aspractice, jyou-go basis, by forgiving all taxes

of the

try are now computed on
of
annual income.
In

"

this

that taxpayers wait un¬

means

——

leveled down.«s—

which they may be

on

til all the factors that enter in the

as

such a Con¬
in such a state of mind is now in session at Washing¬
ton is, of course, clear evidence that the President is far from
having the people of the country solidly behind him at all
rates, the situation might be, but,
points. No one at home will doubt, and our enemies would
in all probability, would not be,
do well not to question, the fact that the country is as de¬
different.
*■
But the change required to put
termined to win the war and as willing to do what is neces¬
and

.

the

country

pay-as-you-go

a

on

ad¬

basis is not so simple as many

plan appear to as¬

vocates of that

for that purpose as is the President himself, but it
definitely is not fully satisfied with the management of its
sary

clock sume. Current tax payments, as
objective indicated, are now measured by
presupposes that all, or at least the completely determined income
of a year;
And so, if we are to
and the tax thereon according to the major part of the taxes, meas¬
make a shift and measure current
law; and, finally, pay< the tax on ured by the income of any year
tax payments by current income,
or
before March 15 of the next (1943, for example) will be de¬
termined and paid within that before the full results for the year
year, or in quarterly installments.
If it does not mean this, are in, what measure will be used?
> This
system has worked well year.
The idea of the measure of week¬
during the past thirty years.
In¬ then, at the close of 1943, taxpay¬
deed, it is difficult to see how any ers will be in practically the same ly or monthly payments, used in
the victory tax, instantly arises,
other method of measuring income position as they are today, and,
and something such as this ap¬
tax payments can be developed presumably, they may then again
with equal reason be clamoring pears to be in the minds of all.
for certain forms and levels of in¬
(Continued on page 582)
come.
Our tax rate structure, our for legislation to turn the hands j
turning the hands of the tax

have been determined;
then compute their taxable income

ahead

year

any

one

policies of the Administration. The fact that

gress

t

incomes, and,
it has been forcefully put, by

computation of their incomes for

affairs in this time of crisis.

This

year.

provisions of "the law., such as the
pet-operating loss provisions, the

capital

gain-and-loss

provisions,

the earned income credit,

allowance of non-business

and the
deduc¬

been based upon this

tions, have

All of these and

plan of payment.

of the tax clock ahead

still another

'v.y •v,'V-\Vy•' •■■■.:' ■'
despite,the fact that our

year.

Now

present system has worked so well
in the past, it may be that the sud¬
den entry into the tax field
of
millions

liquid

of

with

taxpayers

beyond

resources

incomes necessitates some

GENERAL CONTENTS
"f.

V

.

,

.

_

■*?

.

.

Editorials

'

■!

no

current
change.

fully To these taxpayers, who are sub¬
the ject at times to severe fluctuations
in income, and who are not accus¬
for the measurement of the
tomed to save for a debt of this
■
'

Page

Situation

Financial

577

•

Ahead of the News 577

others-involve the use of a

From Washington

determined annual income as

Moody's Bond Prices and

base

Moody's Common Stock

tax.

.

■

,

.

Items About

NYSE Odd-Lot

By CARLISLE

-

BARGERON

Review

in a long time came re¬
22-year-old girl, just out of the university, filled
up to the brim with economics, four freedoms, labor relations and
political science. Over cocktails she listened attentively to the rantings of a Pacific Coast shipbuilder against bureaucracy.
Finally,
Y

The wisest

observation I have heard

cently from a little

she asked:

it

with

agree

you

would be an awful mess

required them to do things
other way?".

if we

in an¬

.

'

which I have to re¬
many months ago I

By way of

that

port
wrote

that

many

in the field

men,

successful

of private enterprise,

utterly opposed to Bureaucracy,
were nevertheless rushing into it

figured that hence¬
Government
was
to
be

because' they

forth

dominant,

that it was to be

the

attached

to

the term.

Traveling

being
pleasant.
One of the most un¬
pleasant phases is the attitude of

these

the
ees

is

days

far

from

overworked railroad employ¬

against

clothes.

travelers

in civilian

them as people on pleasure
But until a few months ago

upon

bent.

official who pro¬
Government order for his

duced

a

mileage was looked upon

assert themselves caught on out in the country as
through being the head of a Gov¬ something to be despised. In the
seeking to

ernment agency.

I,

therefore,! hasten to,

that the

.tide has turned.




last

suggest
Recent i

month

I

have traveled

some

(Continued on page 591)

579

Coke Output...... 589

585

Weekly Steel Review

Index— 585
Crude Oil Production....... 587

Moody's Daily Commodity

Non-Ferrous

Credit
Close of 1942

Consumer

at

586

Of Class'I Railways.... 588

Store Sales..... 588
December- Hotel Sales Higher........ 589
and Diversified Financ¬

ing in December
American

—

Zinc Industry Summary.

Institute Summary.

Copper

Iron Production.,...,.,..;;....
Daily and Weekly Copper, Lead and
Pig

Zinc Sales

....,;..

at

-

590

Board.
of Section 2
"Chronicle.")

page

Go

WMC

Many minds are

It

Turkish

to

Army Will

question of proposing

informed,

be

and of the

petent

ready-made recipes and

applied automatically. But it is important
to assemble the vast available material, to

from the viewpoint of organized labor
What has been lacking is a com¬

social interest.

the study of war and post-war
broad viewpoint of industrial democracy
organized labor.—William Green.

organization devoted to

and the future

of

"What has been

headed

realism

lacking"

on

this side of the Atlantic is

in the discussion

hard-

of post-war problems and

their solution.

with

no

reason

why organized labor

organized business,

should not, along

supply this want.

577

Somebody must

579

pay

Cause Food

supply it—or both business

and labor will

through the nose.

We

578

Shortage

Prosperity

Requires

Co-operation
Draftees

a

578

Huge

Post-War

not

study and analyze it

*

Agree¬

ment

Fedrs

is

blueprints to be

There is

Flynn Nomination..

Obtains

Churchill

social justice and democracy.

erty,

Non-Deferrable Jobs. 579

FDR Withdraws

solution of these

Organized labor everywhere must jam
in this preparatory work in order that, when the time comes,
it may not be overwhelmed, because of unpreparedness, by
forces which have nothing in common with the ideals of lib¬

*
*

(See notice on first
in August 27, 1942,

Is A Pay-As-YouFeasible?
—

Defines

already at work upon the

problems from the

Extent

Plan

prevailed, the matter would de-

(post-war) problems.

Miscellaneous
What

There are

Labor arid Postwar Problems

*

omitted
from
direction of the War

Censorship

To

complex.

(Continued on page 580)

statistics

*These

"Chronicle"

questions so vital and so

country-store arguments

586

Outstanding

January Department

Automobile

upon

always those who would be distrustful and querulous though,
one rose from the dead.
If the current situation were merely
one in which the usual stream of soap-box complaints and

Market........ 587

Metals

Weekly Electric Output...

Nov. Income

-

expects complete unanimity at any

.;..,,

Associatioh Price Index... 589

Weekly Coal and

with a

fairly healthy respect. He wasn't
principal career of an ambitious on pleasure bent, or so the rail¬
man, the best outlet for a fellow's road
employee thought. Now, the
energies, his seeking of power. fellow who so discloses his oc¬
Worthwhile men are still doing
cupation is treated with complete
that.
Instead of working up to
contempt.
the captaincy of an industry, men
The
term
"Bureaucrat"
has
are
still coming to Washington
and

Fertilizer

people at large.

Of course, no one

"

..............

591
Weekly Engineering Construction. . , 587
Paperboard Industry Statistics.,...;. 591
Weekly Lumber Movement; .
.... 590

They are inclined to look

the Government

.

Carloadings.........

Weekly

that what®
these men are doing is terrible, traveling about the country has
convinced me that the Bureau¬
but do you think they could do
crat's days are numbered.
But
it in any other way? - They are
what is more immediately impor¬
trained the way they are, they are
tant is that a definite stigma is
trained to do things the way they
are doing them.
Don't you think coming more and more to be
"I

Trade ' '
.

....

Prices—Domestic Index. 588

Commodity

:

of the

Values....... 586, 589

of

State

Weekly

passionate consideration—now. The first step is to inquire
why these schisms have developed, why they continue, and
why it appears impossible to thresh these disputed ques¬
tions out ahd reach conclusions which inspire the confidence

Trading.............. 590

NYSE Bond, Share

Ahcsd Of The

inevitably do so within the coming 12 months, if not sooner.
Evidently here is a situation which needs careful and dis¬

Exchanges... 590

Trading on New York

General

Yields.585

Yields..,..,, 585
Banks and Trust Cos., .. 592

the possibility that it

do so in the future is plainly present. In the opinion of
many whose views are worthy of very careful consideration,
a continuation of some of the policies complained of would

may

time

Regular Features

Y ;

:

.

to have yet reached

injury to the war effort, but

serious

us—for such it
the point of doing

dissatisfaction, this division among

This

is—does not appear

International Peace..... 578

To Preserve

;

Needs Attention

.

system of varying exemptions and
credits, and many special relief

enough now

nomination of a political "boss" for an important
diplomatic post. Unless usually reliable signs fail it is in the
mood to call sharply into question a number of other acts

they had - been subjected to the
discipline of a few years' training
under the existing scheme, at light

individual

1942

Congress has been in session long

rageous

payments after the annual income
by which they are measured has
been earned, presents obvious dif¬
ficulties in personal finance.
If

the

new

suggest that it is made of sterner stuff than its prede¬
cessor.
It has obliged the President to withdraw an out¬

to

of tax

character, the present plan

than even the ex¬

is a much more complex one

The problem

Copy

THE FINANCIAL SITUATION

Plan For

To What Extent Is A

a

Inducted

Full

— ...

for

All

to

581

Armed

Forces

(Continued on page 592)

581

can

summon

only hope that in
greater

this organized labor will be

wisdom than it has

attitude toward pre-war

problems.

able

sometimes shown, in its

THE COMMERCIAL &

578

.Editorial-

Churchill Secures

To Preserve International Peace

fol¬

Churchill,

Minister

ness

lowing the Casablanca conference
with
President
Roosevelt
(re¬
ferred to in these columns Jan. 28,

\

By H. T. Newcomb

.

A mad

.

,

•

V

world, organized to destroy, turns in its misery

to

thoughts of peace.
Amidst the chaos of disorder, sacri¬
ficing tne best and strongest of their sons to the carnage,
met Inonu, reaching an important
witnessing immense and irremediable impairment of' the
agreement with that nation, an of¬ complex structures civilization requires and men have toiled
ficial British announcement dis¬
through centuries to erect, surrendering hourly their com¬
closed on Feb. 2.
fort and well-being and even some of their ideals of religion
At. the
meetings, regarded-as
and civic virtue, knowing that their civilization is tottering
part of the strategy mapped at
370),

page

went

Turkey and

to

with President Is-

held meetings

North

Africa,1 the British
and
leaders, accompanied by
military
and
political
advisers,
"examined the present situation
in
Europe, and particularly in
those regions wherein Turkey is

Turkish

interested," and reached
"on all principal
points," the announcement said.

directly

agreement

Mr. Churchill carried a message
from President Roosevelt to Presi¬

Inonu

dent

Ankara

in

Turkish

it

and

that

the

replied

di¬

2

had

leader

disclosed

was

Feb.

on

•

No details of the exchange
was given out.

rectly.

of notes
-

"Agreement

United

States

solidate
sive

her

subject

leaders."

tary

able

be

to

to

con¬

and

Turkish

tween

the

and

general defen¬
conversations
took place be¬

own

security,
that

on

Britain

would

it

manner

materially

Turkey

help

the

"on

Great

which

in

reached,"

was

announced,

was

The

official

com¬

Minister, having so

recently been in conference with
the President of the United States,
could

speak

with full knowledge
Roose¬

President

of

views

the

of

velt, who had warmly welcomed
the proposal for this meeting.
"Consideration

also

was

given

problems, on which
agreement .was
again reached.
After
these
interviews,
which
took place on Jan. 30 and 31 at
Adaria, both Turkish and British
statesmen
expressed
themselves

to

post-war

as

fully satisfied."

.

from Ankara Feb, 2 it
Sir Hughe
the

...

advices

Press

Associated

In

was

stated

Knatchbull- Hugessen,

British

Ambassador

Tur¬

to

key, on his return from the Adana
confer enc e,
said
that
Tur¬
key was not asked to enter the
war and that German propaganda
to this effect was a complete fab¬
rication.

The

ference,

he

Turkey with

the

object of

con¬

was to provide
defensive arma¬

said,
more

ments

against the uncertainties of
'the future.:. •';;' !•>?I'

Nothing
ference

Prime

and

the

leaders-

two

and

Churchill

Ismet Inonu

not

and-such

key

signed at the con¬

Minister

President
—"did

was

decide

of Turkey

that

if

such-

happens, Tur¬
such-and-such," Sir
added.
"Turkey remains

will

a

stupendous blows humanly contrived and may fab
irretrievably unless they cease, comprehending men ask
themselves whether war must come again. ; - *
Must

thing

do

this

great curse, prolific

mother of all curses,

incapable of producing any gains, forever rest hardly upon
the sons of men?
They would know whether the genius so

powerful to kill, to maim, and to destroy, is too dull, toe
impotent, too lacking in good will to men, to provide man¬
kind with the pattern of tne peaceful world which their nos¬
talgia demands?
They would organize the world for peace,
plenty, and progress, if they could find the way, as it is now
organized for degradation, devastation, and death. - It has
been so before.
Duke Sully, Henry of Navarre's great min¬
ister in the 17th century; Tsar Alexander, Prince Metternich,

and

Talleyrand,

after the passing

of the hot and

destroying breath of Napoleon; Woodrow Wilson, at Ver¬
sailles in 1919; confident statesmen throughout the ages
have

planned elaborately for peace, and catastrophes of war
they wrought.

have overwhelmed all

Treaty of Versailles was the culmination of such
probably the highest possible attainment con¬
with the primary conception implicit in them all, a

The

ifforts' and
sistent

munique added:
"The Prime

under

mili¬

British

and

Thursday, February 11, 1943

according, to individual tastes, and the enjoyment of
legitimately possessed. When any government

property

Turkish Agreed
Prime

FINANCIAL CHRONICLE

cooperative and controlling super-state with eventual dis¬
carding of the costly and useless armaments commonly bur¬
dening the peoples.
The defeated nations, under duress,
admitted responsibility for the war in which they had been
vanquished.
For that, and the destruction which it caused,
they were penalized to the extreme limit of endurance, with
abnegation, and their abnegation oozed away almost as the
compulsion under which they signed their surrender was
withdrawn.
They were forced to promise vast indemnities

They would not pay what
deprived of territory having great
natural resources required for their domestic economy.
Gradually they took it back.
They were denied the armies
and armaments without which they could not again become
which

they scarcely could pay.

they could.

aggressors

They

were

and their reconstruction was prohibited.

Yet

they conscripted new armies and greater ones and provided
them with arms and equipment far beyond anything the
world had witnessed before.
The. treaty penalties and pro¬
hibitions
torious
to

the

make.
mand
from

might all have been enforced. The nations vic¬
in the war possessed ample power, from 1920 at least
end of 1936, to enforce any demand they chose to
But in

ordered

all Europe no voice potent enough to com¬
Germany to desist from rehabilitation and

increasing her military might.

Dreading

no

longer the

aggrandizement of Germany, not perceiving the full real¬
ities of its armament, Great Britain had come to dread dif¬
ferent dislocations of the

could

no

of France and

balance of European power and

advantage in the relative strengthening
Russia by perpetuating the impotence of the
this situation, the artificial super-state, the

longer

see

peases

to protect these j rights, sq proclaims the, immortal

document, it is the right and duty of the governed, whose
free .consent

is

essential to

just government, to substitute
of their own devising, with powers
approved by them and better adapted to these righteous;
;ends.
In fortunate America such constitutional changes
.can be achieved without violation of the fundamental con¬
stitution but in accordance with methods which it prescribes.
Nowhere, however, does the Declaration suggest that gov¬
ernments should be
formed or equipped for making or'
maintaining wars of aggression.
Yet President Wilson said
that peoples never desire or make wars, but always they are
made by governments, and President Franklin Roosevelt„
demanded, in, 1933, that the "peace of peoples" should re-,
place the wars of governments.
They were right. No?
modern war, in its inception, was ever approved or author¬
ized by popular vote.
In the United States, Congressional
action which might have led to requiring a popular refer¬
endum before participation in any war, except to repel inva¬
sion, was defeated only by executive intervention, apparently
prompted by belief that the threat of war is an indispensable
instrumentality of diplomacy.
Indubitably, wars are made
by governments, to be financed and fought by their peoples,
commonly at costs immeasurable and irrecoverable. How¬
ever, not all governments are warlike.
During the Nine¬
teenth and Twentieth Centuries, from the Battle of Waterloo
to the Battle of Stalingrad, neither Switzerland, Holland,.
Belgium, Finland,;;'Denmark, Sweden, nor Norway ever
oegan or brought about any war.
Too weak in their num-'bers, in their armies and armaments, in their taxable wealth,
they escaped the blood-guilt of forcible aggression and,
although not wholly exempt from the conflicts of their more
powerful neighbors, their peoples suffered materially less
from the devastations which were caused.
These govern-'
ments have operated within small areas, but their relative
.immunity suggests inquiry whether governments cannot be,
created, powerful enough for all the legitimate purposes of
peace, but not equipped with dangerous powers inevitably
tempting them to forcible aggressions. Jefferson and Frank¬
lin believed in governments of limited powers, supported by
peoples to whom would be reserved the largest possible
measures of initiative and authority. If to the peoples every¬
where, as distinct from their governments, could be reserved
all the powers that are requisite to war-making, while leav¬
ing governments, strong enough to protect life, limb, indus¬
try, and property within their boundaries, and there to per¬
form all the essential functions of peace, there would be no:
more wars, unless the
peoples lost their hatred and fear of
warfare and, contrary to the course of all recorded history
became as aggressive and arrogant as have been their egotis¬
another

government

,

tical governors.

Such

;

.

'A

war-necessary powers are

'

'..■.'A.,

not many, at most they

No modern war has been begun and
reliance, by the warring governments,
upon some or all of the following powers, none of theme
actually indispensable in peace:—
are no

more

maintained

1.

than ten.

without

Clandestine

Diplomacy.
Secret understandings J- and
commonly precede wars.
Honest and well-inten¬
tioned international negotiations need not fear the light of
publicity. On the contrary, "open covenants openly arrived
at" would gain force never attaching to results attained by
unrevealed processes.;V
;;• 'GNG•''■>:

alliances

2.
Germans.
In
Propoganda. Governments planning war invariably
League of Nations, neither could nor would move effectively. attempt to inculcate fear and hatred of the enemy among
as before."1',
-Japan was permitted to seize Manchuria.
Italy ousted their peoples. Propaganda at public expense always may be
Haile Selassie and took Abyssinia.
Germany rose again as the sabotaging of popular understanding and is necessarily a
Fears Huge Army Will
an
admitted Great Power and, suddenly, as greatest of crippling of criticism and opposition incompatible with true
them all in its military strength... But the voice from democracy and an outrageous misuse of the resources of
Cause Food Shortage
/
Senator Bankhead (Dem., Ala.),
Geneva spoke not at all or only weakly, and without cour¬ taxation.
Chairman of a Senate Appropria¬
3. Excessive Borrowing. Without wars there would be no
age or confidence or any salutary consequences.
^
;
tions sub-committee investigating
Will it not always be so with any artificially created national debts of large magnitude.
Wise policy would limit
the manpower situation, warned
on Feb. 3 that "we will reach the
super-state?
With any plan of disarmament or depriva¬ these debts to small percentages of the total of domestic
brink of starvation" if the armed
With unrestricted powers to borrow and to tax,
tion of military capacity enforced from the outside?
While wealth.
forces
call
for
more
than
11,the victim is weak will any powerful nation wish to pre¬ most governments proceed to arm excessively "for defense"
000,000 men.
vent its moderately strengthening itself?
When it has and then to use the armaments for operations beyond their
Senator
Bankhead's
statement
was made after his subcommittee
strengthened itself dangerously, will any country which it borders and not distinguishable, save by their sophistries,
had questioned Maj. Gen. Lewis
does not attack or threaten dare, or find it convenient, to from acts of aggression.
B. Hershey, Selective Service Di¬
adventure unprovoked in its reduction?
4. Destructive Taxation. Discovery of the device of grad¬
Equip the super¬
rector.
Gen. Hershey's testimony
state with an army, call it a police force if preferred, and uated
taxation, laying heavier burdens, relatively, upon the
was
not revealed by Mr. Bankhead.
"Any enlargement of the will it not rest indolent or supine or become the facile tool larger taxpayers, at first seemed to enable the voting masses
armed forces will cause us to fall of some dominant and domineering national government?
to impose the cost of government, which they could expand
To the first, second, and last of these inquiries common at-will and for their own selfish ends,
short of supplying the military,
upon small minorities,
sense
lend-lease and ourselves with ade¬
responds with an unquestionable affirmative; to the while themselves remaining exempt and untaxed.
It did not
work out that way.
quate amounts," Mr.
Bankhead others recent history affords a thundering negative.
Governments speedily absorbed the
Is there no other expedient better adapted to the pres¬ new taxes, vastly increased their expenditures, drained the
said, voicing a conviction that an
acute shortage can be forestalled
ervation of international peace?
Perhaps there is.
The brackets including the higher rate-payers until they could
only by the release of nearly 1,- Declaration of Independence asserts that governments are be drained no more, and promptly turned against the sup¬
Hughe
as

free to make her own decisions

.

000,000

soldiers

and

sailors,

ac¬

cording to the Associated Press.




instituted
among
men
to preserve inalienable human porters of unequal taxation, the masses who had believed
rights; rights to individual liberty, the pursuit of happi¬ themselves exempt, exacting from them cruel taxes which

157 : Number

Volume

they could not evade because the upper brackets had been
exhausted.
All taxes should be applied equally in order
that the weakest may

not be victims of burdens beyond their

lasting capacity to endure.
5. Confiscation. 'There need be no peace-time power to
take property from its owners, except under the power of
eminent domain, which must always begin with a formal

legislative declaration of intent and necessity and conclude
prompt payment of just compensation judicially ascer¬

with

tained.

•

•\/.AA,-.-.,

•

stamp a false declaration of
command its acceptance in
commercial exchanges and in liquidation of debts is among
the most illusory and dangerous expedients of governments.
In times of peace it is dangerous and unnecessary.
Even
during warfare it has been the prolific source of catastrophes
7. Conscription. Involuntary servitude, except as punish-"
ment for crime and after conviction, exists in modern civil¬
ization only for the purposes of war.
No such servitude can
exceed that which drives men unwillingly to kill, to maim,'
to their own mutilation or death, or to the indescribable-tor¬
6: Paper or Token Money. To
value on a scrap of paper and

tures of combat in remote and

unfamiliar

areas.

Even dur¬

for

ended

week

the

30

Jan.

totaled

734,582 cars, according to
reports filed with the Association
of American

Railroads.. This was

Increase of 31,004
the
preceding week
80,983 cars fewer than
sponding week in 1942
an

cars

from

99.3% of capacity, compared

with

decline of 0.2
point,7 the American Iron & Steel
Institute reported.

99.5%

:

last week,

The

current

cated output
of

week's

rate

indi¬

of 1,698,700 net tons

and

ingots

a

castings

for

the

days," compared with 1,702,-

seven

lOd/tons last week and 1,622,400
tons

Production- -of

gots

week.

1942

in the like
-

j

basic, steels—in¬

arid ^castings—amounted

to

•

8.

duct

a/;A:AA'/*•'

that "of

or

rules not made with their own con¬
their legislative representatives.
Neither

by laws

Abraham Lincoln
conduct
9.

a

or

nor

Woodrow Wilson believed he could

great war without violating this principle.

:: v

Censorship. Knowledge is power to its possessors, dan¬

to those who err, destructive to the incompetent in
public authority, and fatal to purposes and policies which
cannot bear the illumination of public discussion.
To limit
gerous

knowledge

and

public

comprehension

by censorship

is

declared to be essential to effective
such

prosecution of war and
restriction has been practiced by every war-making

government.
In peace, it is a draining of the wells of under¬
standing and requires that the sovereignty of democratic
citizenship shall be exercised while the sovereigns: are
blindfolded,
'
•/
■['
'?■
10.

Secret

Police,

Under Napoleon,.■ police

15%

come,
farm

the

in

making dictators everywhere have imitated and augmented
the system and will continue to do so while there are wars.

the elimi¬
authority
without equivalent and simultaneous action by all other
governments of strength/ actual or potential, sufficient to

Very likely no government would consider
nation of these powers from its own arsenal of

1943

12

in¬

gross

in

advances

and further
prices.

"I can't let this opportunity pass

fore¬

between

without
I

am

your

telling

how thrilled
is at

you

and the, whole country

brave and successful trip .to

Africa.

than

less

the

ago.

In

year

only

last

a

more

half

than

of

one

It

is

a

of

source

great

Senate.

decline

mained

40%

of

in

to see

come

ever

-

.

,

yours,

,

"FRANKLIN D. ROOSEVELT.".

total

trade

wholesale

unchanged

commercial

would

tomorrow.

or

"As

Non-Deferrable Ms

in
manufacturing,
and
retail - trade.

larp
drops
construction,

in

today

me

failures from last w^ek reflected

Failures

\

.

"I wish you

/

year.

The

this time

at

industry group

total and in retail
quarter as large

year's

trade
as

no

failures

were

last

241

service

and
rose

*'7

Defined By

re¬

those, in
slightly.

President Withdraws

WMG

Stressing

that the question
"What is your job?" is becoming
all-important for deferment from
military service of otherwise eli¬

;

gible

the Bureau of

men,

Selec¬

tive Service of the War Manpower

Nomination Of
nomination

The

of

York

-

F!pn

Edward

to

Commission

Feb. 2 advised its

on

local boards that there

J.

activities

be Mm-: after

303,179 tons and was 273,822 toris
ister to Australia was withdrawn
more than the 7,124,922 tons pro¬
the
Senate by
President
1942. The all- from
time
monthly high of 7,584,864 Roosevelt on Feb; 1. The President
tons was in October, 1942.
'■■■•{ ■ stated that he was complying "re¬
Engineering construction vol¬ luctantly".'with Mr.1' Flynn's re¬
quest made on Jan. 31.
ume for the week totals $81,796,This. action came just before
000, an increase of 95% over the

occupations which
1 would be
"nonregardless
of * de¬

April

deferrable"

The policy

pendents.

issued

was

with

consultation

after

certain

are

and

and

ap¬

proval by the WMC and the Man¬
agement-Labor Policy Committee,
both of which approved it unani¬

mously. The announcement of the
preceding week, but 49% below the Senate was scheduled to take Commission said:
the nomination, which had
the corresponding 1942 week, ac¬ up
"The memorandum lists (a) 29
cording, to /"Engineering News- caused a bitter controversy as to occupations as 'non-deferrable re¬
Record." Private construction the qualifications of the former gardless of the activity in which
National
Chairman
climbs to its highest weekly vol¬ Democratic
they are found' and <b) all oc¬
ume
since last October, and is for the post.
cupations as non-deferrable in 19
It was generally believed that
160% above a week ago.
It is,
manufacturing, 8/-wholesale and
however, 52% lower than a year had the nomination been brought retail trade, and 9 service activi¬
to a vote on the Senate floor it ties.
It is emphasized also that
ago.- Public
construction is up
88 %
compared with last - week, would not have been confirmed, both these lists are preliminary
but :is 49% under the 1942 week. although.it would have been very and that both will be added To
Federal work tops the preceding close.
from time to time.
A'.
"A'A. ■
■

Flynn announced on Jan. 31
"Facilities of the United States
was asking the President
Employment Service are being
The current week's total brings to withdraw the nomination be¬ mobilized to enable men with de¬
1.943
volume 'to $308,622,000,
an cause he was "unwilling to per¬ pendents, who are in these occu¬
average of $61,724,000 for each of mit my candidacy to be made the pations and activities, to find war
the five weeks.
On the weekly excuse for a partisan political de- jobs.
It was pointed out that if

week

46%

surveillance,

by the unspeakable Fouche, was hideously effec¬
against the liberties of Frenchmen, and in the end it
turned powerfully against the failing autocrat,
War-;

was

and

of

duced in January,

directed
tive

an

Flymr of New

Legislation by Executive Decree or Directive: The con¬
of free men cannot, in any genuine democracy/ be

controlled
sent

AAA

increase

cast

.

•

: "AA A,

The department also

come.

The Nation's Class I railroads comfort to all the lovers of free¬
this year,
the corre¬ had net operating income of $1,- dom throughout the whole world
and 20,228 480,940,760 in 1942, the Interstate that you have returned safely,"With cordial best wishes, very
Commission reported
cars
above the same period two Commerce
recently, 48.3%' more than the sincerely yours,
years ago.
1941 figure of $998,286,708.
"EDWARD J. FLYNN.".
This total was 117.21% of aver¬
Business failures dropped sharp¬
age loadings for the correspond¬
Mr,-Roosevelt replied;
'
A'
ing week of the 10 preceding ly from 138 to 82 in the week "Dear Ed:
years. AA * " "■ *
A/ • ■: ended Feb. 4, Dun & .'Bradstreet,
"Reluctantly, I am complying
Steel production in the United Inc., reported, reaching the low¬ with
your request and have with¬
States is scheduled this week at est level this year, and two-thirds drawn
your nomination from the

ing warfare, except for defense at home, its necessity .is 7,408,744 net tons in January, an
all-time peak for the month and
questionable and,,its advantages are undemonstrated. In¬ the second
largest of any month
quiry is pertinent,- whether* the nations should preserve in the industry's history, the
conscription so that they may have great wars "or whether American Iron & Steel Institute
such wars ought continually to be indulged in in order that reportedT" •"January,,,Joutput was
more
than
100,000
tons 'larger
men, and eventually women, may be forced to involuntary than ther December total of
7,servitudes.

579

& FINANCIAL CHRONICLE

THE COMMERCIAL

4150

by 92%, while
from last year.

Mr.

that

he

basis, 1943 construction is

hate

in

below that reported for the

said

his

average

53%

declining

the

Senate," although he

Senate

had

friends

the

did

worker

shift

not

to

a

•

as¬

highly essential occupation or ac¬
six-week period in 1942. Private sured him of confirmation. Such
tivity it would be probable that a
work is 57%- lower, and .public a debate, Mr. Flynn stated, "would future extension of the list might
construction is down 53% from a imply unfortunate disunity."
/
; again make him subject to loss of
year ago, when adjusted for. the
The President sent the nomina¬ deferrable status."
/
difference in the number of weeks tion to the Senate on Jan. .11 and A In
announcing the new policy

reported. ■ 'A ':vA>'AA/'V"'''■
since
that
time
protests were
Department store sales on a raised by Senate Republicans and
• basis1
showed
no
joined by some Democrats. The
be
considered.
Such self-denial and independent' self- change, remaining the same for Senate Foreign Relations Com¬
the week ended Jan. 30 as
they mittee conducted V; a : three-day
limitation is not here suggested or discussed.' But, for con¬
did for the like week a year ago,
sideration, the idea is advanced, that in the ultimate peace-; it was revealed by the Federal public/ hearing; of the charges
made against Mr. Flynn and on
settlement, when the present war has ended, the victorious Reserve System.;d
*
A'A
Jan. 27, by a 13 to 10 vote, recom¬
Store sales
increased 2 % tor mended the confirmation to, the
nations, the United Nations, at once agree to strip them¬
the four-week period ended Jan.
Senate.
However, mounting op¬
selves of these powers so essential to war and so usually
30, compared with the like period
position in the; Senate led. Mi*,
resorted to by belligerents, and enforce against the defeated a
year ago.
v-/ydv•'c• :' AA/A Flynn to make - the /withdrawal
identical limitations.
It may be, that, with this done and
Department store sales in N. Y. request. In his statement setting
formal approval by majorities in each country directly City in the week ended Feb. 6 forth his reasons, Mr. Flynn said:
were 10% -larger than in the cor¬
affected required for their restoration, the antipathy of
; AT do not question the motives
responding week of last year, ac¬
of those who are opposing my
the peoples to warfare would become controlling and gov¬
cording^ to a preliminary esti¬
ernments could no more violate their responsibilities by mate issued by the New York confirmation but I am mindful of
-grievances, real or fancied, against leading their reluctant masses into undesired and, so far as Federal Reserve Bank.
j' the President."
A
■
♦
'
In
the
previous week ended
those masses are concerned, unfruitful aggressions.
At any
In addition to being nominated
Jan. 30 sales of N. Y. City de¬
rate, the experiment would provide the world with an
for the Australian post, Mr. Flynn
partment stores were 9% smaller
organization not palpably inimical to peace. Over-grown thaji^ in- the, comparable - week a was being, appointed as the Presi¬
dent's personal representative in
and arrogant governments, led by men eagerly obsessed with year ago. * \
_..'
/■'
\
the. Southwest Pacific. ;
"
Depleted
stocks
of
durable
thoughts of their places in history, could no longer arm
The
chief
opposition to Mr.
themselves extravagantly for war, and the * governments goods; the new victory taxes and
was
based on charges—
the ban on pleasure driving in Flynn
thus existing would be of the type that would have been
disproved by two
Eastern States are held largely subsequently
New York grand juries—that New
approved by Benjamin Franklin and Thomas Jeffersom <
responsible by < retailers for a
continued
lag * in dollar-volume York City employees using citysales
this year
compared with owned paving blocks, paved the
last year's record high, Dun
& courtyard of Mr, Flynn's estate at
Bradstreet, Inc., report, in their Lake Mahopac, N. Y.
country-wide

.

•

the Commission

stated four prin¬

ciples

for

whose

occupations

the

the order:
"1.

.

.

listed

the

in

of men
affected by

are
v;,

:

.

.

Work

assistance

ties will not only afford

vidual

activi¬

the indi¬

deferment status but is

no

relatively

insecure

because

more

^

,

,

.

and

unessential

more

will

have

production

activities

curtailed

be

to

requires

war

as

raw

more

materials,
labor,
transportation
facilities, electric power, plant fa¬
cilities, fuel, public services and
the like.
"2.

■.

all

in

board

selective
address

■.

•

the

cases,

advise

of

status.

or

Every

:

.

.

other

should

worker

"3.

1

,

As

-

any
...

local

his

change of
A , '
-

affected

worker

by

the order should consult with his
United
ice

States

office

war

,

job

for

or

Employment • Serv¬
employment in a

for information as to

training that will fit him for such

-

The State Of Trade

The -White House released the
■weekly,review. According to this
Reports from most industrial centers continue favorable, with authority, sales for the country as following exchange of letters be¬
very few signs of a let-up from the present pace. The production of a whole were estimated 4 to 9%
tween
the
President
and
Mr.
electric power was one of the outstanding items this week.below a year ago/.
' Flynn.
Production of electricity in the United States in the week ended'
Mr.- Flynn in his letter said:
Reflecting a large war-time de¬
Jan. 30 moved to a new all-time record high level of 3,976,844,000
mand for food and a 22% increase "My dear Mr. President;
•
kilowatt hours, according to Edison. Electric-Institute figures. The
in prices, the 1942 "gross income
"I am requesting you to with¬
previous high was 3,975,873,000 in^
of American, farmers climbed to draw my nomination as Minister
the week ended Dec. 19,
1942.' Each geographical* section - of the
the record figure of $18,700,000;- to Australia from the Senate.
I
Production in the latest week was country showed a gain over a
000, the Agriculture Department am enclosing- herewith a state¬
14.7% above the like week last year ago, the increases ranging
said over .the weekend.
ment which I have Issued which
from
3.6%
in New England: to
year, and compares with output
This estimate was $4,743,000,000 [sets forth fully my reasons for
of 3,974,202,000 kilowatt hours in 29.6% in the Pacific Coast .area.
Car loadings of revenue freight higher than the Al 941 'gross in¬ asking you to take this action.
the
preceding week this year.
-

•




a

job.

i

"4.

Workers

overcrowded
less

defense

United

the

not

must

go

centers

States

Employ¬

ment Service has arranged a
inite

job."

In

to
un¬

def¬

:

filling the needs for the
services, Paul V. McNutt,
Chairman, pointed out that

armed
WMC

deferments

most

have

service

from

been

made

ground of dependency.

he

ency,"

a

as

worker

"Depend¬
important

grouped for deferment,
must

contribution
A

an

But, to justify its accep¬

factor.
tance

said, "is

military
on
the

brief

on

also be making a

the

reference

home front."
to

the

new

policy appeared in these columns
of Feb.

4, page 489.

THE COMMERCIAL & FINANCIAL CHRONICLE

530

(Continued

from

first

page)

particular attention. Differences and dissatisfac¬
however, go much further and among the dissi¬
dents, often apparently in the majority, are found some of
the country's ablest and most disinterested minds. Why is
it that these basic issues cannot be reopened, discussed.fully
and sincerely reappraised without violent controversy and
growing embitterment?
serve

tion now,

Advice Unwanted

stacles

are

major ob¬
This Administration has always

taken the attitude that the.fountain of all wisdom and dis¬

interestedness

to be; found in itself and in the

was

relatively

small coterie of

"advanced; thinkers" by which it has sur¬
never really invited criticism from
the outside. It has rarely sought—and then with

rounded itself.
any one on

reluctance

—

It has

advice

been willing to accept, or even to

or

to

study

pro-

islation to implement an effective

at

the

Week to the New York

Estate

Chairman

the

a

Home

the

National

former
Builders

Association

of

Home Builders, a Director of the
National Committee on the Hous¬

ing Emergency, a former Chair¬
man of the Houston City
Planning
Commission, and the recently ap¬
pointed Chairman of the Post¬
war Planning Committee of the
Chamber

Houston

of

from

Washington

this

"Journal

satisfactorily explained
Congress. The advices from
we quote added: <

moves are

to

hear, suggestions from any but its political "friends." It
Other officers of the ..Institute,
has frequently, to be sure, sought out members of the Re¬
"The group will seek their ob¬
it was made known Feb. 1, were jective in two
ways: By pushing
publican party. Indeed it has appeared at times to try to
re-elected to their respective of¬ for House approval of the Halleck
make a virtue of so doing, but, after all, this is really not a
fices. They are: Arthur W; Binns, resolution to
investigate the 'gen¬
Democratic, but a New Deal Administration—and we may Philadelphia, Vice-President; Her¬ eral confusion caused by ration¬
bert U. Nelson* Chicago, Secre¬ ing,
feel weir assured that these Republicans fitted well into a
regimentation,, standardiza¬
Commerce.

which
■"

predetermined scheme of the things. And as it was yester¬ tary; and Kenneth E. Rice, Chi¬
cago, Treasurer,, New- members
day, so it is today. The Administration gives no evidence of the Institute's Board of Trus¬
whatever of wanting suggestions save from its own.
tees
elected at the1 Washington
<
The other major obstacle in the way of what might be Conference were Albert Green¬
termed a truly coalition management of our affairs, and field, Philadelphia; Guy Greer,
New York City; and. Mrs. Samuel
even in the way of harmonious operation, is the want of
I.
Rosenman, New York City.
plain, everyday, straight-forwardness on the part of the Ad¬ Three members of the Board were
ministration, in dealing with public questions. It has always re-elected to serve for additional
preferred "cleverness" to forthrightness. It has always three-year terms: Louis Brown low, Chicago; Harry Chandler,
prided itself in its "smartness" in all its dealings. Distrust Los Angeles; and Walter Macnaturally thrives upon such behavior. One result today is Cornack, Cambridge: ;
j
that the public generally has grown into the habit of scruti¬
The Board of Trustees reaf¬
nizing every move the Administration makes to find its hid¬ firmed the basic points, of its pro¬
den meaning or motive—and all too often finds one. Bona posal for rebuilding blighted city,
areas formulated; at its 1942 an¬
fide meeting of minds is difficult under such circumstances.
nual meeting, with amendments,
.

Taxes As An

as

Example

follows:
The establishment of

"1.

a

Fed¬

"pay-as-you-go" plan of income tax payment
a

and (b) to extend

the

results in

now

proposal from the Treasury which would require the tax¬

'next

An investigation by the House
the regulation by the War

into

Production Board curbing the use
of newsprint paper was asked on

Feb. 3 by Representative Halleck
of Indiana who declared that the

The pay-as-you-go

plan origi¬

(Mr.

-

„

Halleck)

questioned

program

that

could

of paper was made somewhere

.

the rest of

us

The real

an army can

support, transport and supply? Is this really

military question?

productivity of
gree

question is: How large

diminishing civilian population.

a

upon

Land

Institute also

Mr.

.

resolution

Halleck's

called for

a

also

broad inquiry by the

a

It involves determining the maximum

in which it is wise to impose hardship

The Urban

and the sacrifices all of

us

are

called upon to

make in part

The de¬ at least upon his burning desire to win the peace. The Presi¬
the rank dent is convinced, so the argument runs, that influence at

and file outside of the armed forces must be determined.

the peace table will be in proportion to contributions made

How far

toward

morale?

be driven without serious impairment of
Industrialists, transportation executives, and those,
they

can

like the President

himself, skilled in feeling the pulse, fig¬

uratively speaking, of the great
need to be
that of the
of

consulted, and to have

mass
a

of

people surely
least equal with

our

voice at

must, it seems to us, be set down either

of loose

common

have his way

enemy,

and he is unmovably determined to

in shaping the

there is in this
the

thinking

or

else

as

as

theory,

peace

we are

to come. How much truth

in

no

position to know, but

Administration, in light of all the circumstances,

can

not

the result

Many other illustration
but there is

no

that the President is

basing his decision in the matter of the size of

our

armies

need of

a

come

need to labor the

unfortunate aspect of this that the time has

debate—the widespread impression

it

therefore to

advisable

re¬

view the situation, and that,, when

machinery
to

Fair

The

has

the

meet

Committee

Employment Practice
set up in June,

was

1941, as part of the now defunct
Office of Production Management.
consisted of

constituted it

When

Mark F, Ethridge,

Vice-President

General

and

Manager
of
the
"Courier Journal," as

Louisville

Chairman; Philip Murray, Presi¬
of Industrial

dent of the Congress

William Green,

Organizations;

President of the American Feder¬

ation

of

Sarnoff,

David

Labor;

President of the Radio Corpora¬

America; and two Chicago

tion of

Negroes, Milton P. Webster, VicePresident of the Brotherhood of
Sleeping Car Porters, and Earl B.
Dickei's'on; an attorhey. Reference
to this effect was made in these

1941, page 491.

columns July 26,

Ceik Arnold To

Speak

At M. Yi Luncheon
Lieut.
will

Gen.

H. Arnold
guest and

Henry
honor

the

be

speaker at a luncheon meeting of
the Commerce and Industry Asso¬
ciation of New York to be held
Feb. 18, at 12.30 p.m. in the Grand
Ballroom of the Waldorf-Astoria.

accompanied

Arnold

General

President Roosevelt to Casablanca
for

the

recent

epochal meeting

Minister

Prime

with

Churchill

and, as Commanding General of
the U. S. Army Air Forces, parti¬
cipated in the elaborate plans for
a global offensive by the United
'Nations,...
At the

conclusion Of his address,

General Arnold will

answer ques¬

tions, submitted to him in advance
of the luncheon.

come

Davis

readily enough to mind,
point.

It is clear enough

when the Administration is in urgent

greater willingness to listen and

degree of straightforwardness in its dealings.

a

much larger

Appointed Director

Wallace M, Davis, Vice-Presi¬
dent of the Citizens-Union Na¬
tional Bank of

Louisville, Ky., has

been

a

elected

director

Louisville branch of
Reserve
Davis

offi¬ governed by such motives.

another "artful dodge."

Then there is another very




army

ers

victory, to the sacrifices voluntarily suffered to defeat

military authorities in such matters. This habit warrantably. feel agrieved that it is charged with being

insisting that all such matters must be left to

cers

the

■

of

-

But is it?

;

(

"The President said he consid¬

will be continued,"

"He

the validity of putting many gov¬
ernment
regulations within the

of the newspapers were aware

i

ities.'"

from: Washington:
;

,

- -

powers or personnel com¬
mensurate with their responsibil¬

been estab¬
problem, the
hearings in the railroad case and
the House were indicated as fol¬ in
any other cases which may
lows in Associated Press accounts have
been temporarily postponed

"3.
Redevelopment Uf-land so this.; He,added:..;; : > : ;
"This Congress should demand
acquired by private builders shall
be under regulations of .local .land, that certain policies, be changed
The manpower problem, now assuming major propor¬
commissions and Fedefal authori¬ before
the -publications of the
tions, is another excellent case in point. This problem is ties.
* ;
:
country are ordered to cut back
"4. Local taxation of redevel¬ production to a level that will
patently and admittedly in very substantial part a result
oped areas based on assessed val¬ make it unsound for them to con¬
of the determination of the Administration to raise, equip ues related to
income producing tinue in business."
Representative Shafer of Michi¬
and maintain armed forces much larger than many think power of the properties."
;
The officers and staff of, the In¬ gan said:"-.' vv- ;:
: <'
wise in the circumstances. But, retorts the Administration, stitute were directed to
"The hopeless bungling of the
enlarge
this program for presentation, to manpower problem and the pe¬
this is a military matter and must be left to the
judgment
Congress in suitable, legislation culiar mental gymnasts of OPA
of.military ■ men.'..;
1 ■
which would incorporate certain were responsible
.;■£ -;,, vj:;;J.
for the paper
detailed points of general agree¬ production curtailment."
A Military Question?
ment.

have

lished

nated outside of New Deal circles.

,

working on a partdid not

were:

the

use

\

,.

fact that the members of the com¬

press of the nation."
The views
of Halleck and other members of

vate

uses.

piece of work, placing work¬
war jobs.
They, however,
have been handicapped by the
in

Board's action "could threaten the

■

worse.

tive director have done an excel¬
lent

time voluntary basis, and

enterprise, as well as for else," Mr. Halleck said in a
;.
•/.•/>::>■ ; speech to the House. ;
payer to pay on both current income and that of last year. public uses.
•;/"2./ The creation of local land
Representative
Bfadley of
The result is likely to be—if one may venture a prediction commissions
for
metropolitan Michigan said that "the Adminis¬
tration had started curtailing the
concerning a situation which has as a result of the Treasury areas authorized to acquire land
for redevelopment by private en¬ use of all kinds of paper" and
action become hopelessly confused and confusing—that a
terprise, as well as for public added that he doubted that many
bad situation is made

Practice Committee and its execu¬

mittee

•

the

threaten the press of the nation/
"The decision on reduction in

by pri¬

the Pres¬
said, the Fair Employment

ident

on

regarding
paper.'

House statement said:

"For nearly two years,

WPB

credits to local tailment

for redevelopment

areas

A White

and

category of the 'war effort' and,

land commissions for the purpose
of
acquiring
land
in
blighted

against Negroes.

raise

:

as

ment, especially charges that some
railroads are discriminating

ers

history of New Deal tax legislation affords an ex¬ eral urban land commission, to be concerning the printing paper
ample of such dealings. Demand for inclusion of the lower provided with the funds and pow¬ curb, observed that the WPB's
ers (a) to extend, grants to cities
printing
section
was
required,
income groups among the taxpayers of the land was met
for the purpose of preparing mas¬ 'without
adequate and reliable
with a scheme which added a good many to the list of tax¬ ter
plans for metropolitan areas, figures on total consumption of
payers but which added even more to the load of those With detailed plans for the re¬ paper by industries under their
development of blighted, areas, supervision, to administer a cur¬
groups which had always been paying the taxes. Apparently

has become known

directed Paul

tion, etc.,'* and ,to get the House
Committee on Interstate and For¬
eign Commerce to contact OPA

The

irresistible insistence upon what

President Roosevelt

on Feb. 3,
V, McNutt, Chair¬
of Commerce" reported that in man of the War Manpower Com¬
mission, to call a conference tto
an effort to "prevent the wrecking
of the paper industry, with the consider ways of giving the Fair
inevitable crippling of the presS," Employment Practice Committee
about 50 House Republicans on powers to meet their responsibil¬
The President's action was
Feb, 8 banded together to stop ities.
further reduction in paper pro¬ taken, it is said, because of com¬
duction and planned concentra¬ plaints among minority groups as
tion of the industry unless such to discrimination in war employ¬

Emergency Committee, a Director
of

Conference On War
liewsprtei Curb
Work Gissriratalioia
Inquiry By House

Advices

of

Association

Boards,

of

com¬

/

annual

recent

Ask

National

'distribution' of articles and
modities."

program.

meeting of the; organization. held
in Washington^
Mr. .Potter, the
developer of, River ;Oaks,, Hous¬
ton's famed example of neighbor¬
hood building, is a past President
the

Foreign. Commerce
Committee, into Government pro¬

for post-wai4 urban re- posals ?'with respect to the label¬
development and recommend leg¬ ing, production, marketing and

Hugh Potter of Houston, Texas, re-building

Institute

Interstate. and

(polsalS
4

became President of Urban Land

Real

doubtless several reasons, but two

conspicuous.

committee

.a

of

,

are

lish

Of Urban Land Ens).

no

There

formally, urged"'Gongress to qstab*

Poller Elected Head

THE FINANCIAL SITUATION

Thursday, February 11, 1943

of

Bank

was

of

the

the Federal

St.

chosen for

Louis.
the

Mr.

unex¬

pired portion of the term of Ralph
C. Gifford, President of the First
National Bank of

resigned

as

branch

to

District

as

eral

a

Louisville, who

director

represent
a

the

of

the

Eighth

member of the Fed¬

Advisory Council.

VolumeC157

*

THE COMMERCIAL & FINANCIAL

Number 4150 ?

CHRONICLE
inal

Cooperation(Selective Service Now
Industry, Labor, Agriculture Says Sarnoff Furnishing Men For

Post-War Prosperity Hinges on Govt.
With

In a plea for an American Charter for American business, David
Sarnoff, President of the Radio Corporation of America, speaking
on Feb. 4 at a meeting of the Chamber
of Commerce of the State

All Armed Forces

four-fifths of its

original call.

"This

apportionment
applies
only the the men who meet the

physical standards
by both the Army
and Navy, which are higher than
of New York, said that the great hope for American prosperity and
those now applied by the Army.
men
between
their
security in the post-war period, depends upon Government coopera¬ furnish all
If after the apportionment of gen¬
18th and 38th birthdays required
tion
with industry, labor and agriculture.
"While I realize the
eral service men on a particular
to fill combined calls of the Army,
important place which Govern—
date, the Army decides to accept
Marine Corps and Coast
ment must have in the picture given to the problems of indus- Navy,
some
registrants
whose
minor
trial science and production."
Guard. The Selective Service Bu¬
of American industry," said Mr.
physical
defects
prevent
them
reau of the War Manpower Com¬
Sarnoff, "I
Mr. Sarnoff further said:
from meeting the higher standards
"The achievements of science in mission explained that all regis¬
plead for an
it may do so. Registrants not ac¬
American communication and aviation have trants, ordered by local boards to
cepted by either service will be
Charter
for wiped out geographical barriers, report, for \ induction will be de¬
returned to their local boards for
American and have made the world a neigh¬ livered to jointly operated induc¬
reclassification."
business.
If borhood in which no one.'s wel¬ tion stations' and there they will
On

single

Feb.

1, Selective Service,
through its local boards, began to
1

of

set

agreed

a
after the war.'

upon

Attending the conference, which
the largest "meeting of its
kind ever held by the Associa¬
was

tion,

tives

time

one

as

a

whole.

-

-

-

.

•

the

■

that our isolation is
should
henceforth impracticable is not to
"To

not at another

say

The

services.

nouncement

Bureau's

further stated:

an¬
...

say

that

our

internal

"Under the new program,

while

problems registrants between 18 and 38 who

upset by
are
classified
as- available
for
have lost their importance or that
caprice of
iheir solution is less pressing. The military service will * be sent to
bur eaucracy.
operated 1 induction
sta¬
contrary is true,. In world affairs, jointly
Laws should
we
shall be able to serve others tions, it will be the responsibility
be changed by
of the Army and Navy personnel
and ourselves efficiently only if
David Sarnoff
\ e g i s 1 a tion,
our own house is in order.
One of at the joint induction stations to
not by buassign the individual registrant to
our contributions to world recov¬
reaucratic fiat."
the particular service .for which
ery and rehabilitation must be the
Pointing to the vital importance
he appears to be best qualified.
assurance
in our own society of
of science in global warfare, Mr.
the freedoms we have proclaimed However, "at the ; induction sta¬
Sarnoff said that the degree of
tions registrants will be permitted
to the world."
success
in applying wartime de¬
to
express
their preference for
Mr. Sarnoff, who spoke under
velopments to a new world in
the Army, Navy, Marine Corps or
the caption "Post-War Horizons,"
peacetime, will be controlled by
Coast Guard and that prefernce
social and economic forces over said that after all the treasure Will be
given the fullest: consider¬
which science has no control.
In has been spilled across the battle- ation
practicable.
In the event
part Mr. Sarnoff further stated: fronts, enough potential resources that no vacancies are available in
"The achievements of science will remain to feed, clothe and the
preferred service, registrants
world's
population. will be
and industry hold out for us the house i the
assigned to that service
promise of a great post-war pros¬ Looking ahead to the post-war for which the military assignment
perity—but only if the individual era, he envisaged bread in place board at the joint: induction sta¬
enterprise of our citizens makes it of bullets, and ' farm tractors in
be

.

the

.

.

tions find them best fitted,

place of tanks, while cargo ships
will carry products of farm and j "Registrants may apply for .in¬
duction through their local boards
globe and prosperity for only a factory to millions needed by a in advance of their order num¬
section of our people will not be world at peace. There is no magic
formula for the future, he said, bers, by executing Selective Serv¬
enough. Our constant efforts must
ice Form 165, indicating the serv¬
be
to
make
them
universal. and if global prosperity is the aim, ice which
they prefer. They will
it can be achieved only if global
Neither industry alone nor labor
be assigned to that service insofar
alone nor agriculture alone can war is followed by global peace.
as they are qualified and vacan¬
provide - prosperity - and security Continuing, he said:
cies existi Local boards were cau¬
"Our hope for a future world
for all.
But Government, which
tioned, however, that such regis¬
represents all of us, can, in co¬ economy of abundance is founded trants should not be given posi¬
operation
with industry,
labor upon much more than pre-war tive assurance that they will be
of
prosperity.
It is inducted
and agriculture, help to make the standards
into
the
service
for
entire
nation
prosperous
and based upon the promise of indus¬ which they indicate preference.
trial
science.
The old frontiers
secure. '
V
"Furnishing by Selective Serv¬
"The accomplishments of sci¬ of the world were frontiers of ge¬
ice of all men between the ages
ence
and
industry,, expressed ography. The new frontiers are
of 18 and 38 required by the vari¬
The covered
through the American competitive those of science.
ous services is in accordance with
system of private enterprise, can wagon of the present day is the
the Executive: Order of Dec. 5,
.
be used to create employment for research laboratory.
1942, prohibiting enlistments in
labor
and
for
capital,
and to
"Progress in the field of radio that
age group by any one of the
stimulate national prosperity.
and electronics has advanced on
services.
The services may con¬
"Where
private enterprise is the same broad front with prog¬
tinue to enlist men outside the 18
able
and
willing to
meet the ress in other fields of science and
to 38-year-old age group.
needs, of society, it should not be industry.
It is radio which has
"In the last war, the Navy and
the function of the Government made possible a war of speed and
Corps ,, obtained
men
to create industrial enterprises or mobility on land, at sea and in Marine
to finance them, or to run them; the air. Radio-electronic sentinels through Selective Service in Oc¬
tober- and
November
of
1918.
or to employ labor, or to operate
stand watch
on
shipboard and
our vast agricultural system.
The along the coast. The United States Prior to that time they had en¬
Government's function should be now has fighting forces stationed listed/all £ necessarymanpower.
Navy -obtained: 3,394
men
that of an umpire to. see that each at more thaii "sixty strategic loca¬ The

for all our people.
Peace for only a segment of the
a

prosperity

,

concluded

recently

cial two-day

spe¬

conference (Jan. 18-

in Washington

19)

a

at which

Study Of Proxy Hides
Effect On Corp. Mngm

the

speed the almost halted
housing in war industry
cities but also emphasized the fi¬

effort to

status of

which
expect to

nancial expectations and aid

private builders may
complete the 1943 program.

adopted

Heading the group of Federal
officials taking part in the con¬
ference was John B. Blandford,

ator

Josh Lee

of Oklahoma

and

Sen¬
as

a

the

part

:

t.j

i

.<<




ii

>

i,y.1 "i

•

: >:

' V.tj

was

au¬

rules

proxy

on

cor¬

report of its Special
on
Corporate
Man¬

of which William de
Chairman, urging Con¬

to

the Wolverton bill

pass
would

which

rules

the

freeze

proxy

promulgated

were

prior to Nov. 1, 1942, for the du¬
of the

ration

war

and six months

Jr., Administrator of the National thereafter.
Declaring
that
the
Housing Agency, who expressed Chamber was in favor at the ap¬
confidence in the ability of the propriate time of any revision of
industry to meet the war housing the proxy rules which would sim¬
need.
;
/ •
plify them and at the same time
:
In- his
discussion,
Adminis¬ disclose adequate information to
trator
Blandford
assured confi¬ stockholders, the report said:

existing

the

that

dently

War

Housing Standards would soon be
relaxed. The revised or amended
war

housing

have

-

under

been

Chairman

"The

and

ties

existence

weeks, seemed to hinge, it is in¬

the

dicated,

the question as to

upon

whether

Commission

has, effective Jan. 1, 1943, pro¬
which mulgated certain changes in the
consideration proxy rules which have been in

between WPB and NHA for some

lumber
be

States should

Securi¬

the

of

Exchange

standards,

or

masonry

outlined

specif¬

creation

the

since

Commission

despite
managers
of

the

that
tions

are

of

forms

burdened

the

of

fact

corpora¬

with

many

reports

questionnaires,

im¬
ically in the Standards themselves.
Buildcjrsfrom many sections coun¬ posed upon them by the various
tered
with
the
fact
that
they bureaus of the Government.
rules

and

might be located in a State where
the use of lumber was restricted,

of

plenty

yet

lumber

available.

"The

have

which

been

changes which have been

promulgated and which are not
necessary
for the protection of

Blandford's

explanation that the small stockholders will un¬
might be true, Army or doubtedly promote controversies
Navy requirements might requisi¬ between stockholders and man¬
Mr.

while this

tion the lumber to be

assured

amicable

an

shipped, but
solution of

agement; will tend to make proxy
statements to stockholders costly '

and the certainty the
long-awaited standards would be

when

issued within a matter of days.

est

the matter,

Further
to

the

in

his

builders,

discussion
advised that

open

he

in

of time

terms

of management

clerical help

will

ebb;

stockholders

is at its low¬

tend

to

because

of

confuse
the

vol-

•

uminous matter which is not eas¬

present FHA funds would permit

ily understood by the average
industry operations until stockholder; will create new lia¬
March
I, and. that before the bilities on director management
which
no
need
has
been (
builders again experienced a re¬ for
occurrence of last October, when
shown; and will require diselos-'}
private

"I

explaining a process by
we
dressed, made palat¬

was

local

!.•;••

of

Commerce
York

is

gress

of labor, and the still
member of the Civil Aeronautics
170,000 new starts are
"At the induction station, where builders.
newer and
more dangerous idea
Board was confirmed on Feb. 1
of a vested interest on the part of
registrants will be physically ex¬ permitted under these new war
by the Senate by a vote of 46 to
standards, called
tem¬
amined by Army and Navy per¬ housing
a
government bureaucracy must
31.
Mr. Lee, who was defeated
sonnel, physical standards agreed porary or permanent, anything
give way. None of these can have
for reelection last November by
to by both services will prevail you choose. As I understand them,
a vested interest that runs against
Senator Edward Moore, Republi¬
in the selection of men ordered the new standards coming out are
the common welfare of society."
can, was nominated by President
providing for larger
He likewise said:
up to fill the call and those regis¬ liberalized,
Roosevelt on Jan. 11, for the re¬
trants who meet the requirements room spaces—and these have been
•"American business is doing its
mainder of the term expiring Dec.
decided
after
deliberation
be¬
will be assigned proportionately.
share
in
mobilizing this great
31, 1943, to replace George P. This
proportionate assignment tween the War Production Board
country's resources for the war. Baker, resigned.
will be made whether the call is and the National Housing Agen¬
If will do its share in helping to
Thirty Republicans and Senator filled or not. As explained by Se¬ cy. Keep in mind when we speak
create and maintain a prosperous
Tydings
(Dem.,
Md.)
voted lective Service, if in the combined of particularly private priorities,
world-wide peace.
Free enter¬
against confirming the nomina¬ call the Army asked for 80,000 the sort of construction that you
prise, under a free Government, tion.
Joining the Democratic ma¬ men and the Navy asked for 20,- are referring to is something that
will have
the responsibility as
jority in favoring Mr. Lee were 000 and only four-fifths of that I think we have to go into a bit
well as the opportunity of giving
three Republicans: Senators Memore.
We would like to explore
number, or 80,000 registrants, met
to problems of employment, pros¬
Nary of Oregon,
the minority the * physical * requirements, the it in terms of specific projects.
perity and security, the same
leader,.. Capper, of
Kansas and Army would be assigned 64,000 Our only concern is over that type
brains, the same vision and the
of really temporary housing that
Davis of Pennsylvania.
3 <
men, or four-fifths of their origsame concentration, which it has
the

a

agement,
Kraft

which

placed on the States which
boards will be a able
and
rationalized
actually
combined call for a stated num¬ what
kind
of
construction we
ber of men.
have
in
mind for the
private

and each call

Senate Confirms Lee
The nomination of former

present

Committee

.

Headquarters

of

New

of

the porate management.

they were without funds to con¬
segment of society plays its part tions on the world map. Its Navy through Selective Service in 1918,
tinue, a new appropriation would
accordance with the rules and operates on the Seven Seas. With¬ while 6,529 were inducted by the
be requested. ;^ '■;(t :;; ■..;,
/Ty'
...
fulfills its obligations to the com¬ out instant, reliable radio com¬ Marine Corps.
In discussing the vital need for
"Under
the
munity as a whole. In perform¬ munication it would be impos¬
present program,
ing that task .the Government sible for these widespread forces requisitions of the Secretary of private constructors to continue
would do a great deal to assure to function as a unified war ma¬ War and the Secretary of Navy doing their war housing job, Ad¬
will
be
combined in
Selective ministrator Blandford said:
stability to our economic life."
chine."'
"•
National

Chamber

State

thorized by its membership at the
monthly meeting on Feb. 4 to un¬
dertake a study of the effect of

in

Service

up

It is under¬
leading private
contractors re¬ stood that this study will be one
viewed with • officials of govern¬ of the most comprehensive ever
ment
agencies the
many
vital made of this subject and will be
problems facing the industry. The of several months' duration.
discussions mainly concerned the
At the same time the Chamber

.

that
"the old idea of. a vested interest
on
the part of business, and the
new idea of a vested interest on

said,

problems
which
have
the
home
builders
could, and would, be adjusted.
slowed

United

the

of

is

it

consensus,

nagging

of

Association

National
Builders

States

•

Mr. Sarnoff went on to say

lending

The
The

com¬

representa¬
insurance and
institutions.
The
as

seemed to be that the terrifically

the

Home

well
banking,
as

general

representa¬

American

300

over

of

other

fare
can
be '.separate from
his be physically examined by Army
and Navy personnel. Those meet¬
neighbor's. When this war to save
ness
men- are civilization has ended, there can ing physical requirements agreed
entitled to be no peace for us as a nation un¬ upon by the War and Navy De¬
know it. What less there is peace in the world partments will he •; apportioned to

at

of

munities,

big business is
crime, busi¬

is declared

building

were

tives

a

lawful

little,marketability i

Navy'has perhaps

the

while

request,

would be assigned 16,000 men, or

ure

of internal information which"

in time of

should not be per- "

war

mitted."

Pan American Publications
The Pan American

Union, Wash¬

ington, has available for distribution to schools, clubs, civic and

!

Other

<•

for

organizations making plans
the

continent-wide

annual

celebration of Pan American Day
on

April

14 a

limited supply

of

material designed to meet the re¬

quirements of all groups arrang¬
ing programs for the occasion.
The material in the special Pan
American

.

publications

fea¬
ture the successive steps taken by
the

Day

American Republics with re¬

lation

to. the

and

war

the j indis¬

pensable mineral and agricultural
products which the nations are
supplying for the conflict. There
is also

of
all

the

a

series of articles

republics giving

each

on

over¬

an

picture, including geography,
and
principal products.

history

Requests for a list of the material
should be addressed to the Pan
American
iD. c.

Union,
.

.

i

Washington,*

:

.

1

,

.

I

_

-

582

THE COMMERCIAL & FINANCIAL CHRONICLE
allowable

deductions.
These, of
might be capable of esti¬
mate by the
taxpayer, but even
those taxpayers who would stand

To What Extent Is A

4. On

tax,

however, is
It has one

quite

a simple tax.
exemption level and

It

disallows

And yet, the com¬
monly assumed alternative of de¬

charitable

contributions,

eliminates

It

losses.

etc.)

It

capital

gains

provides for

income credit.

quarterly incomes and
tentative

to

paid

cur¬

source"

plan

extended

forms

under

it

especially

if the

Similar considerations apply to
capital gains, and to other forms

deductions could not,
stands, be extended to
business incomes, rents subject to
allowable
expenses,
and
other

of

individual
incomes, such as
rents, which are subject to deduc¬

similar kinds of income.

„

tions before the "net"

puted.

■

Some

of

be

can

these

com¬

might

be

their

at

income

plan

of

payment

their

1942

the

shall

IIow

we

approximate

payments

liability

tax

be

that

ensure

taxed,

the

* on

1

;

.

cellation of tax debts
comes.

able.

and

rate

exemption

the

by

structure

The

exemption problem

is

dependents

a

be

can

once

may

at

in measuring
payments based on

rent

incomes

tax

under

cur¬
cur¬

existing

our

laws.
While most taxpayers
vaguely familiar with the gen¬

are

eral

facts*

tion

of

exist.-

adequate apprecia¬

no

the

problem

Nothing

to

appears

this

proves

well

so

the popular belief that the shift

as

to

current

a

payment

plan

is

hand,

married

a-

would have

single

of $266.00.

the $2,500 gross income level,

merely, that

mean,

alone

Y

(2

$73.00

based

income

on

to

year,

for

preceding

be applicable to

the

in¬

To

substantial.

If you

tion

the

rate

jay,, the

at

on

one
or

might well ask at what
under

would

ivhat

the

circum¬

payments,

measured, cease to be a
for the current year?
In

so

liability
point of

fact, the fiction alone would ac¬
complish absolutely nothing of
substance, so far as the achieve¬
of

ment

a

pay-as-you-go

basis is

•

to

get

is, as
approximate

an

the

fits,
with no

person

bear

cruelly

so

would

alleviate

the other

priate
what

his

distress,

hand, if the rate

to

the

had

latter

become

of

were

the

On

appro¬

used,

pay-as-

basis?
Yet, if numerous
rates of deduction are used to fit

you-go

on

But serious as are the problems
Prising from the varying exemp¬

essary to

linger long

on

income,

that

impracticable,
desired

selves,

by

it

the

even

venture

we

that is

not

would

not

taxpayers

with

the

only
be

them¬

bonus

of

a

cancellation of 1942 taxes thrown
in.
■

plan

you-go
comes
enue

that

of

tax.

business

a

a

The

in¬

Rev¬

1942 itself recognizes
year,

as

incomes, is not

basis for
the

the

individuals.

Act of
even

these

are

a

applied

to

satisfactory

final determination
And

so,

tions

allowed

those

by

resulting

for it is

present

from

law,

the

rate
nec¬

this point,

familiar to all. Under

one

our

present Revenue Laws, differ¬
ent levels of income
are, as almost

everyone
ent

knows, taxed at differ¬

rates.

to income

"Principal among these "forms"
-of income unsuited to
any pay-as-

it

allows

of

net

operating loss "carry-overs" and
<fea*ry-barks"
which
now
put
business incomes for tax purposes




under

plan.

a

It

cur¬

payments be based upon
determination and return of,

:

provide
for ' the
within the year of the

payment

For

a

married

person

Tax)

(including net Victory

is about 7.4%

ievel;

11.3%

at

at

the

$2,000

the' $3,000

level;

This means, to be specific,
tax payments must be

year.

that

1943

measured either
1943

estimated

And

since

the

any

acceptance of the present basis
measuring * 1943 payments' by

of

1942

income.

the

^f tax attaching to

this

income

nonth

or

any portion of

received

quarter

of

during
a

any

current

year, one would have to know the

approximate
come

amount
of the in¬
for the entire
year, less the

then,

the

could

1942

tax

Assuming for the-.moment
satisfactory (i.e. to Con¬
and

gress

taxpayers) plan of de¬
ducting at the source the approxi¬
lower

under)
payer

of taxes-

levels

can

will

incomes

on

(say

$3,000 and
be developed, the tax¬
be

ibredit for such

allowed
taxes

to

to

held, based on his 1942
subject to withholding.
3.

The

taxpayer

will

take

be with¬

income

against large overpayments
sudden drastic decline of

a

income.

In

other

words,

on

Regular

income

on

and

the
regular
preceding year

of

1,700—

86

a

1,800—

The

is

automatically

following

used

the taxpayer's in¬

should drop to
$1,200 in
1943, resulting in no tax, the only
overpayment would' be the $15
plus the amount, if any, that hap¬

have

to

$1,200.

funded

been

This

withheld

would

under such

,1943 showing

return

"regular"

1944.

for

for

tax

,

provides

in

that

of

the

return

will be at

any year

measure

ment

the

of all taxes for

final

once

settle¬

the

preced¬
and the measure of the

year

tentative

liability for the current
thereby simplifying the col¬

lection
4. It

and

any

on

taxes

paid

or

of

an

before March

on

by

1943

March

paid, of
It

15 of

any

course,

reduces

minimum

income will

be

15,

of Dec. 15, 1944.

5.

immediate set¬

remaining tax
the preceding year. Thus,

year

debt for
all

reporting mechanism.

requires

tlement

36'

77

39

1944, instead
(The major part
in 1943.)

"refunds"

due

32

31

34

Y

37

33

3ft

.

JO!

; 07

41

40

38

181

Tiff

53

43

41

203

45

44

136

60

-

223

155

8«

48

4ft

242

174

10ft

51

49

2.600-

261

103

125

2,700—:

281,

212

111

80

2,800—

301

232

161

05

57

321

252

183

11 1

60

3,000. Y

340

272

203

134

7«

Horizontal
tax

lines

indicate

65

where

51
.

54

regular

begins to be effective.

We

are

not concerned here with

considerations relating to the ad¬

visability of opening the door in
basic tax
plan to credits for

a

marital

status
and
dependents,
practically closing the door

and

such

to

credits

superimposed

in

on

income

an

tax

the basic tax. We

simply that such a multiple
of income taxation effec¬

say

plan

tively prohibits

feasible

any

cle-

duction-at-the-source

tax, as just
inspection of the fore¬
going tabulation proves. At $1,300,
simple

a

for example, the rates of taxes for
everyone
are

in the groups analyzed

practically the

differences

begin

to

in

crop

same.

rates

out

of

all

Then,

taxation

along

the

line. At
no

$2,000 the rates are: 7.2%,
dependents; 3.9%, one depen¬

dent; 2.1%,
pendent.
If

than

more
we

travel

de¬

one

up

to the

$2,500
level,
these
differences
(substantial for the taxpayers con¬
cerned) begin to grow more com¬
plex.

No

holding

feasible

can

plan of with¬

encompass

There is thus

no

them.

escape

from the

conclusion
to

a

because the mechanism

"overpayments"

•

on
re¬

tax for 1943 and

no

tentative

be

circumstances

1944 after the final

It

33

58

141

2,900—

come

pened

43

125

15

case

28

:

325

Regular Tax
If in this

25

29

30

•

2,400—

in

340

"

20
23

26

2,300-

:

Withholding Tax

21
24

27

2,500—

$3,000

Total Tax

year;

22
25

>

2.10C-

arbi¬

are

18

2.200—

pro¬

computation,

105

15

2,000-

the limitation that the
for withholding must be
as that for the total tax.

all* figures

-Y:

12

15

18

1,900—

withholding

proper

13

16

31

-t

4

$10

'

19

28

same

3..

13

Y

25

66

3
$10

$10
-

23 ;

.

47

which

•

Y.,31

1,400._•

1,600—

under

/

2

1.500-

measure

no

14

17

income

on

partment
tected by

in

14

—

20

tax, would be relatively small. At
the same time, the
Treasury De¬

the

1

$11

17

exceed

1942!

Income

—Dependents—
0

20

not

Taxes-

Ot-oss

Deductions

$11

$1,000....
1.100

of

-

as

Gross

Income

"over¬

Victory

10%

for .current

that

year,

'

Net

Aet

Allowed

which, at lower income levels

and

the

and

Revenue

between

tax

allows

present, any ex¬

dependents;

of married persons with
none, one,

1,200—

difference

stallments

at

four

1.300—

could

March 15, 1943, or in quarterly in¬
as

those

large income groups.

the

payments"

is
pay

$1,900 for

dependents, and $2,250
with

The following table and chart
showing taxes (Victory tax after
post-war credit plus regular in¬
come) for various income levels

imme¬

an

pro-

tected
due to

ing

some

those

all very

a

diate credit for the estimated 1943
tax to be
withheld, and is

the

2.

for

elaborate analysis is
necessary.

filed

that

dependents,

with three

tax

regular tax.

a

Thus, the taxpayer gets

sions.

filed by all taxpayers as usual.

a

dependents, $1,550 for those with
two

.withholding

single persons, $1,200

withholding tax and

pay-as-you-go plan achieve? Y.
1' There is
only one escape from
the hard clutches of these conclu¬

That is, briefly, as follows:.
1. Returns of 1942 taxes will be

for

two, three and four dependents
illustrates this so clearly that no

any

at

the approximate amount

of

debt accomplish?
And. what,; un¬
der such
circumstances/ can

it the

lo know

What,

forgiveness

year

This results from the

the

year for married persons with no

by

income;

income.

would likely be, in most
cases, the
1942 actual, we are forced back to

15.4%

at the $5,000
level; 21.0%
$10,000 level; and 46.7%' at
$50,000 level.
Consequently,

annual

income

that

Victory Tax which
(except for the post-war credit)
applies uniformly to all incomes
over $624 a year is
superimposed
on a tax that starts at 19%
(dis¬
regarding the earned income cred¬
it) on taxable incomes over $500 a

essential

an

or

pattern of
acceptable estimate for 1943

mate amount

che

by 1942 actual

fact

any year, say 1943, into two taxes,
both * based on
1942

rep¬

?YY.

peace.

and desired.

plan.
: The
plan
proposed accomplishes it by divid¬
ing the tentative tax liability for

developed that

!

for

pay-as-you-go

it,

taxpayer's annual income, past

will

(no dependents) the ratio of taxes

Ill

want such

debt

current. No practicable alterna¬
tive to this can be

an

tolerable.

It is not

now

tax

stiff

a

be

trary, illustrates this:

are worse.

say

1942

to

Taxable Income 1942

structure

to

side

put into effect in 1943,
This is
really the prime objective of any

not

run;

taxpayer's current liability
developed.
our present tax structure
that objective certainly can not be

-

pendents, that not even the cer¬ mate amount of the liability at¬
tached
to
the income for such
tainty
of
an
eventual
refund

three de¬

or

tain forms of

even

long

take

we

we

satisfac¬

some

achieved, particularly in the very
;Y; vital income range of $1,000-83,000
where witholding Is most needed

;

one

t

approxi¬

with two

one

j

or

In the

or

the, weight ; of the

would

discussion,

With

might be integratedWith the reg¬
ular income tax provisions and be

pay-as-

plan requires that the

some

the

that

for weekly or
monthly,
quarterly, tax payments
clue on income of the
correspond¬
ing period.
With respect to cer¬
measure

a

rent tax

deduc¬

a

to

accomplish. •'

which

previous

ment

in¬

payroll offices would become in¬

The heart of the problem

more

analysis discloses,
feasible and real current pay¬

any

are

varying conditions, the burden

concerned.

stated,

deduction

use

source

married

at

all,

As

335.00

taxpayers at these low
levels, such differences

come

dependents,

stances

no

certainly lose the
203.00

person

for the year in which made.
If this has any actual
significance
come

point,

(no

dependents)

continue to

we

present, considering the
payments in any year, although

wait

nothing but a paved, fourstrip highway to an inflation that
might well cost the war and would

?

'

:.;Y:Y'

V
the foregoing

be

can

It provides a completely de¬
termined annual income as a base
for the measurement of the tax.

plan (excepting for those
low income levels) than

a

would

dependents)

putting

abol¬

tory "deduction - at - the - source""
plan that will capture a large part

1.

those who might temporarily

escape

would

pay as at

is

added to it.

•

Married person

Single

fiction

and

will

resents

change to daylight savings time,
a

very

even

the

rates would be:

tax,

Again:

Y;

different

of the

holding tax, let us first enumerate
briefly what this proposed plan

of payment. It
is, in fact, with the minor excep¬
tions noted, merely that" .present
method, with a ^Withholding tax

At

'Y'
In

have assumed that

the moment the
possibility of get¬
ting the consent of Congress and
the taxpayers to a tax scheme that
will lend itself to a feasible with¬

;, :

the present method

no

tax of $137.00; and a

a

person, a tax

Married person

such

with

person

dependents and the s^rne gross ineome"(also a very common status)

merely a matter of-establishing a
legal fiction, comparable to our
But

it

if

-

seem,

before he becomes subject to regu¬
lar income taxes.
On the other

involved

*

any substantial part
larger
taxes
due
from
others, let us merely point out
that such a plan, simple though it

to

tax

very" bad start

a

do

the-

you-go

rent

ent income levels.

time, capture

income

gross

■\'

partial¬
three differ¬

ly exempt interest)

two

on

ished.

earned income credit and

coun¬

(How¬

computations of income be

con-

condition of any feasible plan.
2. It establishes a
formula

(optional tax plan) of about $2,100

lems

in¬

leveled down
But the

withholding

these

questions,' it will be well
explore more fully the prob¬

Actually, with carefully

income.

based

two taxes

read¬

This

of

(a very common

status) must reach

first

at

dividual income taxes, with dif¬
ferent rates and different
exemp¬
tion levels, and based
upon two
(or, if we take into account the

justice to taxpay¬
ers
at the low-income, high-ex¬
emption levels and, at the same

and $350 for each depen¬
dent. Thus, a married person with

of

system of two separate in¬

They may not be insuper¬
Some

will at

married

a

deduction

of

the full report for the pre¬
ceding year will always be re¬
quired.)
7. Finally, as has been indicated,
the plan compels that the with¬
holding tax base be integrated
with regular income tax provi¬
sions, and our present system of

be

impracticability,
under
present
laws, of any withholding tax that

felt

person,

two

Before attempting an answer to

.

$1,200 for

person,

(after
to

difference.

chiefly at the lower income levels,

single

liability

level

creased
ever,

of pay¬

excess

somewhat involved

until 1944 for the payment of the
In view of the obvious

of

the law deserve still greater con¬
sideration-.

where its effects are most painful.

' >.•%

1942

stiff

created

Present exemptions are $509 for a

n

on

by the varying forms of individual
Those

1943

withheld) or
otherwise refunded..,'Y
"Admittedly
this
may
seem

most taxpayers will doubtless con¬

•>.

Any

the:, amounts

plan,! should ying.

on
its pay-as-you-go plan
neglects to consider them. "

the problems created

as-you-go

y.rr % Y'

tax

,';'Y YY.YY 1 ' IV -;
plan, if in no other
v- %,:Y;
exclusion and sep¬ Y; Despite all that has been said,

ness

plan, with its forgive¬
of the 1942 tax debt, repre¬
sents a bold and laudable aspira¬
tion, rather than a feasible plan..

turn in full.

substan-r

incomes.

the final
income to

that any adjustment
required is relatively minor?
For
it is necessary to insist once more
that, unless, this is done, the pay-

by

are

for

tax

ments will be credited to the 1944

tinue to feel that the thing to do is
to let the 1942 tax debt go, pass a

These

these

so

than

any

high, that stand squarely across
the path of any current payment
plan which begins with the can¬

pay-as-you-go
arate tax.

for

credit

\1

of

excess

ments
to
a
current
status
by
measuring both his regular and his
tentative tax liability by the in¬

payments,

the

amounts

.

tax

way

1944
of

,

try will be off to

exemption and other basic
provisimis of our Revenue Act?

-3. If a taxpayer faced with a ris¬
ing income desired, he could be.
easily allowed to bring all his pay¬

debt be cancelled? isidered forms of
returns, it would
Or in what other way are
they, to be iound to be much more simple
be taken care of?
Y Y
Y.
in practice than the
present in¬
These are obstacles,.obvious and volved

ing current payments; but others,
such as capital gains, certainly can
not.
Yet, like business incomes,
they must be taken care of in any

1943 income under the present

Any

tax

and others evaded.

on

his

to

a

i

liability

for the next year.

previously withheld,
plus amounts directly paid, will
be payable upon filing of the re¬

tially different from the present
If, however, they are to be
from-

of

withholdings.

over

source), in what
it be asked, is the pro¬

estimated for the purpose of mak¬

rate,

for,;

ited against the tentative

1944,

of his final

measure

deduction

5.

the

This, then, is the problem that
the thorough going
pay-as-you-go
basis of taxation, implicit in the
Rum! plan of forgiving the 1942
tax debt, poses for us.
How, to
be concrete, shall we measure the
payments to be made in 1943

1944

one?

excluded

of 1942 is
computations?

And

relatively minor part thereof

posed

of

rate

year

stricken out of tax

these

the

guessed at.

into account in the computations,

income' (corporate
dividends, for exam¬

the law

as

must be

sources

year has
been computed before
paying their taxes (over and above

way, may

involved,' the

also

until

deducted

other

some

fwait

We

-

be

doubtless
to

basis,

And again, by what method would
the net-loss provisions be taken

of fixed

interest and

ple)

could

are

taxation

on

the

some

or

decline of income below the level
of the preceding year to be cred-

liability for 1943; and (b) the

measure

again, if these taxpayers at
higher income levels are to

the

or

source

obviously impracticable.

system; particularly
other kinds of in¬

where

come

compensation. And
"deduction
at
the

while

is

mechanism into the

a

since,

■

be

that

on

tax collection

is its

computation,

to

elaborate

so

even

as

rently only

is

tax

pay

after

yet,

merely inquire what would be ac¬
complished by the introduction of

and

And, finally,

that tax itself, simplified

monthly

tax

ductions at the

five-year basis.
that it would be

to estimate their

ness

earned

no

a

impossible for taxpayers in busi¬

have been accustomed.

we

substantially

We do not argue

tax rate*

one

many
deductions
interest and taxes;

(non-business
which

on

(a) the

once

the prospect.

Victory

before March 15,

or

the taxpayer, will file a return of
1943 income which will become at

reap some immediate benefits
from the shift might well recoil at

(Continued from first page)
The

above computed

as

over/the amount to. be withheldi

to

Pay-As-Yon Go Plan Feasible?

of his tax

cess

(

course,

Thursday, February 11, 1943

a

that if we wish to
get
pay-as-you-go plan, based on a

withholding
grate

the

tax,

Victory

we

must

Tax

inte¬

with

the

regular

583

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4150

157

Volume

(1) abandoning that tax above the
levels at which the regular tax be-

taxes

operate; or (2) by dras-i
tically modifying, if not entirely
eliminating, the credits for de-

/aiiom

gins to

capture

however,.

tax provisions, either by

in

under

$1,000-

serted

the

of

;

/.

"

•

•

Here, however, we come face to
face with the problem created by

Gross

' holding

.0

$1,300—

the

,

4

3

160

120

80

$40

160

120

80

$40

: 280

2.800—

:280

320

120

•

120

160

This

dependent $200.

is

not

the

of

In this illustration,

with

person
selected

its

war

At

that

mained

is

b.

allocation by manufacturer

dents

would

some

form

have

of

be made

to

by

"6. Work with all other

the

development and applica¬
the

of

withholding formula,
of the withholding

production of more materials
the

to

essential

ecqnomy."

substantial

of

part

source

tax,

a

the

on

the taxpayer and

sponsibility

for

which rests

on

of

Treasury De¬

'

.•

.

.4H

<

companies, after 3V2

Victory tax.

$17,061,000,000 of

It must be borne in

mind here if every

payroll officer
In the country is not to be con¬
verted into

a

roach
2200

2400 2600

civilian

to

cruiting

pendents in the basic tax provi¬ dependency exemptions in a withr
It may be
sions.
J;.,/v'v'%% holding tax scheme.
by a. few examples
■*' i To accept the latter alternative illustrated
given in the following tabulation.
would involve the abandonment of
>a

social

consideration

that

has

{. V

recognized in our individual
income tax laws almost from the

•been

beginning.
If we accept the for(which involves, it should be

<

/mer

pointed out, the conformance of
regular tax provisions re¬

.many

flating to deductions with those of
.the Victory Tax) the problem be¬
comes
enormously simplified, al¬
though still not without consid.* erable complications.

With-

■

holding Present tax with dependents
Tax* "01
2
* ,3 7: -. 4f

$1,300—

40

-

here

and

20

105

•

2,000—

140'

144

2,400-._"

220

223 e

2.800—

340

■^At

20/6

%

32

77

•

/ 155
232

340

272

of gross

week..

This

24

nj-

301%

300

3.000—

25

18

18

43

f

19

25

;

47

100

1,5001.800

20

__

Horizontal lines

assumed

We/ have

-

,

Gross
Income

;

23

/

27
87 y: 48

164'.

95

81
M

39 *

203

income

••-&$

-134 /76

$25.00 a

over

reveals

war

clearly

manpower

the

economy,

civilian

/and

the

Smaller

of

National

re¬

both

could-benefit

Bureau

Stores

Retail Dry

the

of

Goods Asso¬

ciation'has filed,

with the Senate
Small Business Committee, a sug¬

gested outline of the functions of
independent office of civilian

an

supply,

civilian supply admin¬

or

istrator; In its announcement Feb.

ji/the Association said: V 7;7/ %:

store men feel
adequate supply
civilian goods to sell, a mini-

"Most/, smaller

•

r 40

77.7,
.7.
indicate Victory "taxes. /I

tabulation

positive approduction and

essential ;civilian

2800 3000

given

that,
of

of

mum

an

or

manpower

Woman-

power^ to staff their stores,,-and
comparative freedom from unne¬
cessary
regulation and interfer¬
ence,

they

weather the war¬

can

shipping,

on

only

^ In summing
the

up

ac¬

risk insur¬
expected to
on

their

despite

the activities of
companies

period from June 1939,
when writing of marine war risks
first started, to the close of 1942,

taxes

the

and

overhead

companies

that these

are

expense

of

participating, and
expected to exceed

the

puted,

•

and

which

:

most

large

is

Themselves

margin of time

very

offices allow
small.
Two

/exemption rates which would not
1 change for any given employee

of employment
be
handled.
complications would im¬
peril
pay-days throughout the
country, particularly now when
man power is short and accounting
machinery unobtainable.
during

.could

year

any

doubtless

Further

If

we are

willing to sacrifice the

Tax above the levels at
which the regular tax provisions

Victory
r

1

begin
to
operate,
satisfactory
withholding rates based on gross

time ^hazards

with

comply
tions

and

important
all

overcome

difficulties.

V

small

of

•

•

:

retailing,

regula¬
potential

"'7

/.■'

"With this in mind, the NRDGA

that would

begin to capture

substantial part of the taxes
that must be
levied at higher

any

levels is wholly
2.

/or

We

must

dependents

withheld
group

for

selected

impracticable.

narrow

so

the

to

tax does not fall so
tax

the

"

with

the

statement

The

Senate

out in more

Committee

filed
sets

detail, the thinking of
operators as to

the

credit

that the

first.

come

tax

dependency
measure such
far below the

smaller store

the

details of the plan. It recom¬

mends

a

which the War;

been written,

trator, charged with the
"1,

Locating

4¥2%,

been

has

quate to meet taxes

cargo; insurance

represented $13%

252,000,000 arid hull insurance $3,809,000,000.
Cargo insurance,
which
is
cleared through
the
American Cargo War Risk Rein¬

following apportioned among the

individual

defining,

as

liability of taxpayers with exactly as possible, in terms of
dependents as to defeat the tons, yards, gallons, pounds, etc.,

fact

that

the

net

the

year

was

$20,379,000,

only

United States
Government issues increased iron*
their

holdings

approximately

of

the

of

end

at

$1,950,000,000

the end of 1941 to

$2,320,000,000 at

19%.

about
from

1942—an

increase

;o£

The

the Association also

365,000 individual War Bonds. In
addition, over 15,000 people are
saving

regularly

for

Bond

War

risk/insurance has

surance

companies, showed
and

the

figuring out around

the risks

functions:

Despite

gain in savings bank deposits for

r

Exchange and

civilian supply adminis¬

ury-

balance."

.

rate

Feb. 5. On this amount,

purchases through savings bank
The Institute's announcement Victory Clubs. Both of these plans
enable 1 people
to save a fixed
further stated:
? %'
"\:'
/1. /
amount each week out of their
"Opinion among the marine un¬
current earnings and provide a
derwriters, as a result of their war
convenient, safe method for regu¬
experience, is that the basis on
lar War Bond buying."

the amount of the credit

slightly inade¬
and operat¬
1. We must be willing to forego
group has recommended a set-up ing costs and furthermore left no
the Victory tax above the levels under- which civilian supply would provision for reserves to cover the
at which the regular tax provi¬ be the object of positive and ag¬ temporary and speculative nature
%
sions begin to operate.
To with¬ gressive /.attention — stressing, of the business.
"Of the total insurance written,
hold at these lower levels at any however, that war needs should

an

upon

on

■

emptions would be intolerable.
'Payrolls must be quickly com-r

plan,
acceptable with¬
holding tax.
It may be briefly
summarized as follows:' 77;
pay-as-you-go

based

figures

preliminary

announcement
said: *•
"Increasingly important to the
the Institute on Jan. 29 said that large volume of War Bond sales
"these
war
risk
underwriting are the pay roll and other sys¬
tematic savings plans currently in
operations,
including both car¬
operation in most savings banks.
goes and hulls, have resulted in
a
credit
balance
of $11,168,691, At present the savings banks are
representing the difference be¬ operating pay roll savings plans
for
3,124
employers with over
tween
premiums of $243,036,293
166,000 employees.
These plans*
and losses paid and outstanding of
most of which were put in oper¬
$231,867,607. It is pointed out, how¬
ation late in 1942, have already
ever, that this balance is a gross
accounted for the sale of some
sum from which must be deducted
the

over

the

prices that must be paid for a

to

issued by the Savings Banks Asso-

They also operate over 166,000
pay-roll savings accounts in co¬
operation with the War Savings
Staff of the United States Treas¬

[

throughout that any withholding
tax which requires payroll offices
-to take care of more than two ex¬

satisfactory

according

through systematic savings plans.

_

are

insurance

marine

Government

banks
the invest¬

savings

for

$685,000,000 in U. S.
bonds
during 1942,

of

years

; ■

•;

war

operations

over

■

7

.

small loss

a

State

$3.15,532,000 represents War Bonds
and Stamps sold by the savings
banks either over the counter or

Institute of Marine Underwriters.

a

York

responsible

$370,000,000
represents
the in¬
crease during 1942 in government
bond
holdings
by
the savings
banks for their own account and

experience during which
they have written approximately

show

New
were

ciation,

war

ance

Savings Banks Up
Holdings

;

the
heavy sinkings, particularly dur¬
ing the past year, according to fig¬
ures
published by the American

| Supply Office Offered
Pointing out that

tual

overall

tax-collector.

Plan For New GiviSian

2000

$847,000."

insurance

j,

marine

-American

This principle appears
to /have partly been forgotten in
the withholding provisions of the

1400 1600 1800

-

Show Small War Loss

re¬

collection

the
the

the

partment.

1000 1200

:

Marine Ins. Go. To

liability for the payment of which
rests

re¬

"civilian

whole

/

This ob¬

jective is to capture at the

;

agencies

prime producers toward

objective

must be borne in mind.

1

ship

one

Gavt. Bend
ment of

liability/has been withheld.

the

of de¬

mand.

and with

.

NY

and

tion to the needs of smaller re¬

tailer and of special areas

payroll offices when their full tax
.

economic

most

equitable distribution by region
and outlet, with special atten¬

notice that

'"stop"

the

assure
-

employees in these groups would
be allowed to arrange with their

tion

of

insurance

only

risk with outstanding

a

Through inventory control

and

dependents

two

withholding rate. '-Thus provision
against overwithholding for per¬
sons: with more than two depen¬

In the

time
as

material;

the .basis for fixing the

as

it had practically wound up
underwriting operations.

year

products make the
most efficient use of the basic

the married

taken

was

Administration. By the end of the

by the Board

Stabilization and:

ment of new

an

as

insurance

entirely by the War Shipping

Through simplification,
standardization
and
develop¬

discussion.

under

part

car¬

leading marine insur¬

hull

when
over

a.

presented as

proposed plan of taxation, merely

st

been

the American
Insurance
Syndicate to

companies belong. The Syn¬
dicate discontinued
writing war
risk hull insurance during 1,942

margin of ma¬
the de¬

allotment

or

Economic

married person $1^000; each

^Exemption,

Illustration

cision
of

has

ance

course,

terial and manpower after

80

160

280

360."

"200

200

320

400

'

,240

360

»•

320

of

income

,

through

the

which

pro¬

limits.

Taking the

"5.

-•*

.200

2.4002C0'

of

would,

out

Marine

the basis of
War

insurance

"Hull
ried

■

80

3,600—

to

priority within de¬

carry

fensible

$20

on

submitted.

needs

always

,

,2,000— ',120

•1,800—

decision

a

information
duction

2

—

$60

100

be

would

an

render

following

1:

$40
$20:

1,500—

as.

premium

and losses paid* and
outstanding of $60,620,454.

impartial referee over
pleas of the two agencies and

sit

dependents

Tax,.

Inooipe

with

""Tax

With-

it

function

whose

a

net

$36,148,837,

Board

married persons

11

tween

production needs before the
of Economic Stabilization

war

present rates, there is in¬
the following comparison

possible withholding tax on
with a,tax of 20%
on
gross incomes, based on ex¬
emptions stated:

See preceding tabu-*

$1,300 level.
■

Victory

the

(

levied

now

a

credit bal¬

$35,640,308, representing
the difference between net pre¬
mium income of $206,887,461 after

ance

of

FDR Asks $4 Billion
For U. S.

Nan

President Roosevelt asked

Con¬

Feb. 5, for an additional
$4,000,000,000 cash and $210,000,000 of contract authorizations for
the Navy. In submitting the re¬
quest to Congress the Budget Bu¬
gress on

reau

said the funds were

needed

"provide for additional require¬
ments for the prosecution of the
to

war," and "to provide

for contin¬

gencies which have arisen since
the transmission of the budget for
the fiscal year 1943."
¥

The
breakdown
of uses the
:'• V; 7:- the present supply, of basic civil¬ adjustments and Exchange ex-/ Navy intends for the additional
ian
consumption materials, the penses, and losses paid and out* funds included:
3. We must simplify the deduct
standing-of $171,247,153.
Miscellaneous expenses, $7,500,tion provisions of the statutes' so possible and probable supply of
"Volume of war; risk cargo in¬
that gross income is more nearly the'/ same; materials for each of
000;
research laboratory, $350,gle men and married men with
surance
being written currently
the measure of actual income, as it the next several years.
000; operation and conservation of
no dependents.
Thus a withold"2: Locating and defining man¬ through the . Cargo Exchange is naval petroleum reserves, $2,900,is in the case of the Victory tax/'
ing tak on single persons of 20%
materially less than heretofore,
resources
It is no part of this article to power)/ arid; machine
000;
naval reserve, $48,000,000;
of gross income over $10.00 a
due to the limited amount of extraining, education and welfare,
define or suggest tax policies with available and essential to the pro¬
week would provide a tax at all
duction;: processing and distribu¬ oort; cargoes and the fact that $4,845,000; maintenance for the
levels of income in the $1,000- respect to the income groups here
Government is insuring a substan+
Bureau
of
Ships,
$850,000,000;
affected.
The definition of the tion of those materials.
tial part of imports, particularly
$3,000 range, practically the same
"3. Submitting that information
ordnance and ordnance stores, $1,difficulties that lie in the path of
as the present Victory and regular
foodstuffs, at non-compensatory
to
the
War
Production Board,
a satisfactory pay-as-you-go plan,
000,000,000; pay, subsistence and
rates.
tax, after deduction of the post¬
and the conditions under which whose charge it would be to de¬
transportation, $494,968,000: medi¬
war
credit.
Similarly, a with¬
"The credit balance of $35,640,fine war needs in those commodi¬
cine
and
surgery,
$67,000,000;
they can be overcome or evaded,
holding tax of 20% of gross in¬
308 on cargo war risk insurance
against periods
coinciding
in other words, the essential con¬ ties
yards
and docks, $800,000,000;
come over $25.00 a week on mar¬
was offset by
a debit balance of
ditions of such a plan, are all th^it with the periods for which figures
aviation,
$562,000,000; armor,
ried
persons
(no
dependents)
$24,471,618 resulting from
the armament and ammunition $417,concern us.
However, by way of are submitted.
would provide a tax substantially
"4. Presenting the needs of the operations in insurance on hulls,
illustration and comparison with
000,000.
the same for all incomes in the
representing the difference be¬
the previous tabulations of taxes civilian economy as agaiftst the
$l,400-$3,000.

will take as much, or
if desired more, than present rates
can be readily established for sin¬
income that

lesser

purposes

of withholding.

•

-

-

range

It would not,




I,

584

WStrfVUW irUW., WW^ r1

t\v

^!,mA. 'MW;

,-,

kklfyWKfipm *UW&(*A-\U* ft

.

THE COMMERCIAL & FINANCIAL CHRONICLE

Free

ful debts has been

Enterprise Must Be Fostered After War

its

made, net prof¬

Formula To Liquidate
U. S. War Projects

$i;860,262. <These

are

profits
$75,003 lower than in
the previous year but this reduc¬
about

are

Declares Nova Scotia Bank President

tion

is

Thursday, February 41, 1943

almost

fully offset by the
enterprise "has a major part to play in providing a
large enough production of goods and services to make economic refundable portion of our taxes
shown at $70,000, which will be
security a reality," in the post-war readjustment was the statement
A permanent formula
repaid to the bank in the Gov¬
made by J. A, McLeod, President of the Bank of Nova
Scotia, at
.the annual meeting of the stockholders of the bank at Halifax on ernment's second fiscal period af¬ post-war liquidation of
That

free

Victory Clubs and special payroll
savings plans for the purchase Of
War Savings Bonds were initiated
by the banks during the year,

:

;

"The

In Canada Presented

Feb. 3.

Mr. McLeod went

"Indeed,

of

one

functions

of

the

the

ter

to say:

on

Government

—-—

pinging

play to

and

ing, the

real

output

the

civilian

individual

initiative

There need be

contradiction

no

between

regarding freedom of

terprise

the

as

Government intervention.

recognize

that

and

1942

will

appreciate the
heavy
taxation

of

present

Supply,
to

output

war

about

$2,600,000,000
$1,200,-

against

as

war

Ac¬

scene.

some

Government

while.

The

is

well

present

worthj

system

taxation is devised in' such
that

irrespective; of

annual rate of

an

when

the

$3,700,000,000
reaches

program
.

a

of

way

gros^

our

.

its

ment

in

is

conditions

prise

which

to

foster

free

enter¬

thrive."

may

At the

position

a

in

time it

same

was

pointed

out

by Mr. McLeod

that

the

questions

which

is

now

concerns

trols."

"one

of

there

good deal of public dis¬

a

cussion

about

our

"There

is

wartime

con¬

economic

no

reason," he said, "why this should
be a major problem. In the main,
the

wartime

controls

have

been

designed to combat the effects of
shortages, and they should be removed, not immediately, but
gradually

as

the

overcome

and

as

between

ments

ply

shortages
the

maladjust¬

demand

and

corrected."

are

sup¬

*

With respect to the
control

are

increase in

of

the

two

presented in the Canadian
House of Commons on Feb. 1
by
The

foregoing

Associated

was

Press

which further stated:
The

formula

immovable
States

to

are

be

that

the

earnings

our

Canada

offered

for

one

to

the

year

remarkable

a

problems, President Mc¬
responsi¬
bilities." "I believe, however," he
following to say:
promises no easing said, "that the system of collec¬

Leod had the

ous

founded."

was

'

12

or

Govern¬

problems of price control.

Generally,

the

tion could be greatly improved
by
the adoption of a pay-as-you-earn

price would be fixed
by two appraisers, one chosen by

the

upward pressure
on prices is indicated
by the large policy along the lines of what is
excess of purchasing
power over now known as the Ruml Plan."
prospective
supplies
of civilian He further stated:
goods, which means that the nat¬
"Last
year,
the
Government
ural tendency of

buyers is to bid

took

important step in the
up prices and 'of sellers to mark right direction
by adopting a pol¬
up prices. The desire of sellers to icy of
collecting income taxes at
raise their prices is often fortified the source of
payment on a fre¬
by pressures on their costs, inher¬ quent and regular basis. But

sig¬

ent in the advanced

time

stages of war¬
and
mostly

mobilization

traceable

to

shortages

of man¬
They in¬
clude higher unit costs resulting
and

power

from

materials.'

curtailment

necessary

in

production, and higher labor costs
resulting from the use of inex¬
perienced and less efficient help
and

from

labor

a

rapid

more

turnover.

producers

In

often

an

rate

of

agriculture,
for higher

ask

nificant

as this improvement has
been, current tax collections still

relate

to

present
rule

we

hind

to

increase tax defaults.

for

difficulties.

Then,

too,

the

less

trol

increases

control in this

the

problems

of

country."

Pointing out that "it is of the
utmost importance
dian

that the Cana¬

people persist in the battle
inflation with unabated

against

"But

leaves

prices implies
ure

tion.

an

in

controlling
increasing meas¬

of self-restraint
It

requires

and coopera¬

an

greater

even

degree of saving through the

cur¬

tailment of all but essential

spend¬
ing.
It involves a general will¬
ingness to subordinate group in¬
terests
in
higher prices, higher
profits, and higher wages to the
national interest. " It also implies
willingness to
accept necessary
additional controls and public co¬

who

table

In

his

Mr.

McLeod

.

is

in

not

t

readjustment

The

Cotton

announcement

Annualv Report

coming
flexible

changing

requirements

clared

"that

the

Exchange

medium

for

of

He further de¬

New

York

Cot4

the

country's
several

of

war

the

pro¬

head¬

ings of the balance sheet," he ob¬
"the amounts shown are

served,

at record
to

the

figures, due, principally,
large expenditures by the

Government

and,

also,

for

to

war

our

e

000

more

a

way

Dominion

taxes were

purposes

participation

with other banks in

to

loan to the

of

deposit
and

Government

$1,357,773—over $295,-

than

the

entire

in

1941—and after
providing for these taxes and af¬

and doubt¬

as of midnight Feb. 20
registration of the entire ci¬

and

vilian

population for War Ration

Book

Two

six days

tection

of

trade

the

will

be

conducted

books will be needed to purchase
foods
under
the
new

rationed

point

rationing

takes

effect

when retail

1

selling will be resumed.
first ration

the

entire

period will be

month

grower

Ex¬

pro¬

well

as

of

March,

those

possessing

allowable

as

five

of

chase

period, with each

of

pur¬

"costing"

a specified1 num¬
The exact number

ber of points.

points to be assigned for

suc¬

cessive ration periods will not be
disclosed until the middle of the

previous month, OP A said. Thus,
points for April will be announced
around

March

Official

point

values

the

regulation

closed

as

soon

froztn

on

will

Feb. 20.

that
of

for

the

than 200 food items covered

more

by

15.

storekeepers

the

be

retail

as

dis¬

sales

are

The OPA said

to make

are

use

"freeze"

period to replen¬
they must dis¬
play prominently the official table
of point values for the informa¬
ish their stocks and

ings accounts is
of

ance

a

further

sav¬

assur¬

capacity to finance
voluntary loans," said
Smith, President of the
our

P.

Association

Burlington
on

and

President

(Vt.)

Savings

of

foods

size

Bank,

also

the

according

and then

save.

every

store in the country.

Plans
food

for

the

its
C00

ability to absorb $12,000,000,of Victory Loan Government

Bonds

This

is

within

a

evidence

single
that

we

month.
have

a

the

items

i

rationing of

the

mentioned

were

these columns of Jan.

in

7, page 72.

Cuba-U. S. Sign War Pact
-

"America has just demonstrated

to

container,

the OPA
pointed out that every item will
have
the
same
point value in

the

Feb. 5. "Most significant is this

and

of

A

supplementary military and

naval

been

cooperation
entered

the
on

agreement

into

States and Cuba.

by

It

has

the United

was

signed at

Ministry of State at Havana
1, according to a cable¬

Feb.

underlying economy as well gram to the New York "Times"
which said:
as comprehension of the economic
realities by the great masses of
"The Minister of State. Dr. Jose
our citizens," Mr. Smith stated; he
Augustin Martinez, acted for Cuba

sound

MacLeish. Quits

OWI

Achibald MacLeish has resigned
as Assistant Director of the Office
of War Information in order to
devote his full time to his
post as
Librarian of Congress.
Mr. Mac¬
Leish

was

and

tion

in

came

1942.

of

the

Office

of

crea¬

October, 1941, until it

part

of

Since

served in
assistant

Davis.

head

Figures from its

..

a

to
.

the

that

OWI

time

in

be¬

June,

he

has

part-time capacity
OWI

Director
...

as

Elmer
...

;

than

more

maximum

deposits

the economic realities of the pres¬
ent and are able to save and saVe,

the

which

system,

March

proof that the public have grasped

and

for

beginning Feb. 22. These

of consumers.
While point
last values will differ according to the
r-v relative scarcity mf the various

in

vital

a

of the

the consumer."

Facts

taxes

ac¬

distribution

provides
cotton

and that the members

of

"In

own

;V'J-- V
stability of mutual

ability to keep in tune with the
ever

sulted

of

their

the \^ar by

ily increasing activity of business
during the past year which re¬

gram."

for

the. gain

Levi

modern business.

2 that

retail sales of these foods will be

of

regular issues of Govern¬

meetings, reiterated the
of the Exchange and its

change fully recognize the neces¬
sity
for
keeping
the
contract
closely geared to the requirements

develop¬

banks

attitude

ton

presented
at the meeting showed "the
stead¬

ment

Association

"This

Exchange, in making
of the

Adminis¬

Feb.

on

securities,
approximating
$725,000,000, was-five and a half tion
year;

Cotton

the further

National

the

Robert J>< Murray,* President of
the

Mr. Burns pointed out that the

*

by

times

the

revenue to

which

.

,

One

system' would solve
problems without any sig¬

from

The

;

,

Price

suspended

in this first

ment

industry.,

of

announced

rationing of canned fruits, vege¬
tables, juices and soups, frozen
fruits and vegetables and dried
fruits, will begin on March 1. All

cept

count in

following the

Office

tration

cans) will have 48 points to spend

futures

this

similar aggre¬

any

the

questions affect¬

revisions

protection

deposits, one of
ratios of protection

built for

.

revision of the New York. Mutual Savings Banks announced
Cotton Exchange futures contract. on
Feb.
5
that mutuaL
savings
The first of a series of meetings banks of the United
States have
to study the economic desirability distributed to the
American pub¬
of some cotton futures .contracts lic
$750,000,000 of War Savings
revisions took place in New York Bonds. Their
policy of urging the
City on Jan. 18 and 19 and other purchase of War Savings Bonds to
'meetings will be held in the neaij the limit, then of saving and still
future.
The all-industry commit-, further
saving as an antidote to
tee was formed from Jhe industry-i the
high cost of living, also has
wide committees, representing the resulted
in
mutual savings
de¬
Department of Agriculture, cotton posits going ahead by
$131,278,410
manufacturers, merchants, an out- in 1942 to the all-time
peak of
of-town advisory group and ;• the
$10,620,957,953.
New investment

contract

additional

Rationing of Canned

the
been

would be acceptable to the entire

developments in the main indus¬
tries brings out the remarkable ter
making appropriations to Con¬
expansion
in
war
output and tingent Accounts, out of which
shows how war demands are im- full provision for bad




to study

of

Foods Begins March 1

a

of the inevi¬

nificant loss of current
the Government."

has

industry

an average

deposit amounting to

per

j

Study

representing

of

as-you-earn

these

formed

ing

system

dangerous liability.

a

cotton

$1,-

the previ¬

over

and each holder of Book Two (ex¬

to

And

loss

entire

aggregated

gain

a

1

Exchange, which had been
working on recommendations for

close of the war to realize the dif¬
ficulties that may arise. The
pay-

"T h
remarks

.

or

p resen

them work. Government
by
And, of course, it calls for com¬ certificates."
As
petent and determined adminis¬ profits he said:

stated that "a brief review of the

.

subject

reduction

operation in making

tration."

is

needs only to think

bank's

success

a

category?—the

vigor and determination," Mr. Mc¬
Leod said:

who

everyone

income—and

favorable experience of the United
States in the realm of price con¬

than

general

a

rates, this lag did
not raise major
difficulties, but at
the very high rates of
today it
works serious injustice and tends

remaining help and to compensate
increased toil and

as

eight months be¬
payments.v
i".

our

the risk of

their

and

pre-war

prices to enable them to hold their
them for

rather

past

all

are

in

"At

the

income

committee

A

con¬

gation of capital."

The

Revisions Under

ac¬

surplus accounts at

1942

highest

ever

each

'

Futures Contract

feature

of $8,398,794,

year

cents

for

Cotton

special

for each dollar of

"The future
in the

increase

an

1941

$850.82. Interest-divi¬

of

reserve

count,

bank

end

279,662,303,

The

•

and

was

"Combined
the

country, with power to se¬
there remained from the; lect a third in
case
of disagree¬
record of organization and tech¬ profits $20,262 to be carried, for¬
ment.
nical progress. The growth of war ward, thereby
increasing the bal-;
If movable assets are not re¬
industry to its present/stature has ance to $1,286,755."
v
:■ j moved or sold to the Crown with¬
been accompanied
by—indeed, it
"Total
deposits,"
Mr.
Burns in one year, the formula
sets
has
been
made
possible by—a noted, "at $337,591,000 show ah
forth, they must be offered for
great development in the skill of increase
of
$40,000,000 for the sale on the open market. If
they
Canadian men and women work¬
year.
Of this increase, $16,550,000 cannot be sold, their disposition is
ers, startling results in Canadian is
represented by Dominion Gov¬ to be referred to the permanent
scientific investigation, and rapid
ernment balances arising from the joint defense board.
and continual
progress in indus¬ Third Victory Loan issue in
The formula, it was
No-j
said, was
trial technique."
vember, and $23,000,000 by busi-s designed to cover disposition of
At the Feb. 3
meeting of the ness deposits, that is, those not United States
projects for which
stockholders
of
the
bank
(the bearing interest. - The latter re4 no
special agreements have been
111th
annual
general
meeting), fleet the larger disbursements by made.
:
.■:
H. D. Burns, General
Manager, re¬ the Government for war
Among the major projects un¬
pur-;
ferred to the subject of
taxation, poses."' V-■ ,v-?" •"
'&>'■ j dertaken by the United States is
saying "there can be no doubt
the Alaska highway
"Total
which, under
assets," he said, "are
that the vast majority of Canadi¬
a special
agreement, is to become
ans
accept such heavy taxation $410,467,055, up about $30,000,000 a
part of the Canadian highway
for the year, which is an- all-time
with good grace, as a
necessary
high in the 111 years since the' system after the war.
part of their wartime
great expansion lies

ac¬

servative investments.

released

within

sale

was

the

Government bonds and other

all

United

,

ment.

special

upon
deposits • average
1.88%, thus reflecting the pre¬
vailing low levels of return upon

.

•

all

dends

in

-

of

assets

and

This

from

accounts

advices,

decrees

end.

$27.97

counts,

King.

reported

Ottawa

clubs

in

including

regular, or old-style mutual sav¬
ings accounts, exclusive of club

coun¬

tries,

Prime Minister Mackenzie

banks,

average
of $666.48. The average account in

dividends will be

but
rather a protection
of, individual workers have been required and $1,380,000 and after making a con¬
rights. Let us also recognize that employment in metal-using and tribution to the Officers'. Pension
in the realm of tariff
policy, im- chemical industries has increased Fund
of. $210,000
and
writing
migration, and international to new record totals. Behind this $250,000 off Bank Premises Ac¬
upon,

agreement generally, the Govern¬

of

various

year

projects constructed in Canada by
United States is provided in
an
exchange of notes between the
Governments

savings

counts, amounted to $694.45 at the

the

neces¬

under

the

the

defense

within
profits available foi|
one year after the end of the
war
only 70% of out
to the Canadian Government or
average
taxable profits for the
peak this year.
the provincial Government.
All
"To turn out this great flow, of four years 1936-39.
j movable assets must be removed
the 'tools of war,' more and more
"Dividends required a total of
from
to

us

private

encroachment

an

find

the

increase in

enormous

000,000 in 1941, and will increase

monopoly
is not free
enterprise and that
State regulation in such cases is
not

be¬

will

conditions and, ; equally |
all will agree that any self denial
occasioned by the war meeds of

in

of

Let

sity

manufactur-

dominates the

amounted

en¬

absence

mere

of

We

war."

tions

policy and freedom of en¬
terprise. Let us not fall into the
of

sphere

the

cording to the Minister of Muni¬

Govern¬

ment

error

"All

the

of

shareholders

showing not unsatisfactory. ;j

activities";

he added:
"In

end

the

——-————

upon

should be to encourage the return
of conditions which will
give freer
progress.

the

lieve

principal^—:

for

account

average

mutual

added:

and

"Assets of mutual savings banks

American

Spruille

Braden

Ambassador

for

the

United

$11,794,289,030 at the States. A United'States Admiral,
beginning of 1942 to $11,950,577,- James L. Kaufman and Commo¬
506 at the end of the year, an in¬
dore Diez
Arguelles, Chief of the
crease of $156,288,476.
Mutual ac¬
Cuban Navy, were present.
counts declined from 15,738.907 to
rose

from

15,294,143. This decrease of 444,was primarily due to
efforts
to sell war bonds to small pur^764

For similar reasons there

chasers.
was

a

decline

accounts.

in

school

However,

savings

numerous

"The
were

details

not

of

made

the

agreement

public."

-

Signing of the original pact
noted

1942,

in

page

our

997.

issue

of

Sept.

was

17,

%

.Volume 157

-Number 4150

THE COMMERCIAL & FINANCIAL CHRONICLE

Moody's Bond Prices And Bond Yield Averages
Moody's

computed

bond

and

prices

bond

averages

BOND

Corpo¬
rate"

Feb.

9

Corporate by Ratings
A
Aa
Baa
Aaa

Corporate by Groups*

108.88

117.60

115.24

109.97

117.60

115.24

109.97

requirements

117.80

109.97

94.71

99.20

112.75

115.43

117.60

115.04

109.97

94.71

99.04

112.75

115.63

108,70

117.60

115.04

109.97

94.56

99.20

112.75

115.43

117.14

108.88

117.80

115.04

109.97

94.71

99.20

112.75

115.43

94.71

less

important

war

curtailed

were

se¬

to

verely.

paying

day on Jan. 30 was celebrated
throughout the country by the
customary series of dances and
parties, the proceeds of which go
to raise funds for the

Chicago handlers have infantile
Washington for permission President

raise rates.

duction

Board

of

War

much

are

paralysis.

Pro¬

conference, his message of thanks
to the contributors was read in a

encour¬

99.20

112.56

115.43

quarter the

108.88

117.60

115.04

109.97

94.71

99.20

112.56

115.43

shell

117.60

115.04

109.79

94.56

99.04

112.56

115.43

108.34

117.20

114.66

109.60

94.26

98.73

112.37

115.24

Heavy purchases have been made

aged at results obtained this win¬ broadcast
from the
ter,, as enough scrap is being sup¬
by Mrs. Roosevelt.
plied to maintain steelmaking and

of

most

117.05

108.16

117.20

114.66

109.42

93.82

98.41

112.19

115.04

107.62

116.80

114.08

109.06

92.93

97,62

112.00

114.66

Low

1943-

Low

9,

2

112-75

115.63

107.44

116.80

113.89

108.88

92.35

97,16

111.81

114.46

107.62

117.20

114.27

108.88

92.64

97.47

112.19

114.66

115.90

1942—

106.04

115.43

112.75

107.09

90.63

95.32

109.60

112.75

that telegraphic reports
had received indicated

operating rate of steel companies
having 91% of the steel capacity

•

i

;

.116.93

106.92

116.51

106.21

' 116.22

:

,

117.80

91.91

106.39

90.20

97.16

YIELD

Individual

110.52

113.70

96.54

109.79

113.31

week

Prices)

Avge.

Corpo¬
rate

2.06'
2.06

Corporate by Ratings
Aaa

3.23

«

Aa

2,77

A

\ 2.89

.

R. R.

P. U.

which
that

it

the

Indus

95.5%

4.10

3.81

3.02

2.87

3.80

3.02

2.88

one

month

one

ago

one

year ago,.
This
decrease of 0.2 point
0.2% from the preceding week.

or

The

3.17

4.10

3.17

4.09

3.80

3.02

! 2.90

3.17

4.09

3.81

;V 3.02

2.87

! 2.90

3.17

4.10

3.80

,3.02

2.88

2.90

3.17

4.09

3.80

3.02

2.88

operating rate for the week
beginning .Feb., 8, is equivalent, to
1,698,700 tons of steel ingots and
castings," compared to 1,702,100

2.77

2.90

3.17

4.09

3.80

3.03

2.88

tons

3.23

2.77

2.90

3.17

4.09

3.80

3.03

2.88

one

2.06

month ago,

3.24

2.77

2.90

3.18

4.10

3.81

3.03

2.88

2.06

one

3.26

2.79

year ago.

2.76

;

3.23

2.77

3.24

2.77

3.23

2.76

<

2.06

3.23

2.06

2.06
2.06

ZZZ

2

Jan. 29
22

—'U-

:
.

r

2.92

3.19

•

4.12

3.83

>'

2.88

3.04

2.89

3.05

2.90

3.06

2.92

15

w—

2.06

3.27

2.79

2.92

3.20

4.15

3.85

8

—•

2.07

3.30

2.81

2.95

3.22

4.21

3.90

2.08

3.31

2.81

2.96

3.23

4.25

3.93

3.07

2.93

2.06

3.23

2.76

,* 2-89

3.17

4.09

3.80

3.02

1

V

Exchange Closed

1943_r,—
19431942

9.

2.87

i

3.02

3.33

4.37

4.05

3.19

3.02

i

2.94

3.23

4.23

3.91

3.05

2.92

2.84

2.97

3.28

4.28

3.93

3.14

2.97

2.76

2.99

3.37

4.40

3.97

3.18

2.99

3.39

2.88

1.93

Year

3.30

2.79

2.06

3.34

2.10

3.38

■

ago

1942—

2 Years ago

8,

one

yield

either

the

average

more

tThe latest complete list
issue of Jan.

14.

page

202..

-was

published

'

MOODY'S

WEIGHTED

AVERAGE

Month—

January, 194?
February, 1942
March, 1942

7.4%

ON

;

V4' 7.2%

,

Yield

(15)

(10)

(200i

"

7.6 %

7.4

7.7

8.2

8.3
'

6.4
—_

>•;

1942

-XS't

4.6

6.0

8.9

4.5%

5.6

:'

5.0

6.1?;;

8.2

5.7

4.9

7.8

8.4

5.6

7.7

6.9
6.6

'

8.2

7.5

\

,,

5.5

V.

4.7

6.4

8.0

5.1

4.7

7.9

4.9

4.5

6.1

4.4

October,

'

5.8

1942

'

7.3

:

■

5.5

■

7.0

7.2

5.0

:

1942

December,

January,

5.5

1942

November,

iron

5.3

8.6

5.0

7.9

1943

'

8.0

,

and

In

addition,

rourids

tightest of all carbon

products

and

shipments

cent

shift

in

prices by

Administration, designed to

move

these grades

ly.; ..-vZ,

of the
Materials Plan

new

Con¬

have

been

advised

forms will

that

sumption
tons, ' 4%
in

of

Inc.

1941

and

than twice the

more

'consumption

in

World

War.'I." .Z -'Z-

similar drives

for

combating

New Five-Cent Coin Is

Mr.

hu¬

of

the

of
of

production.

war

Standards

nouncement

\

\

an4

Bureau's

further

said;
the new

change to

raise

funds

malady

decades

with
was

ago.

for

Infantile

the funds
The

af¬

to the National Founda¬

Paralysis and
locality where,

half remain in the

raised.

were

President

%»

celebrated

his

birthday on Jan. 30 aboard a Pan
American clipper plane
flying 8,000 feet above Haiti, he told his
conference

press

Department
elimination

The

go

tion

silver and 9%
manganese, accord¬
ing to the National Bureau of

Commerce.

to

the

Half the proceeds from the

piece consists of 56% copper, 35%

"The

two

of

Roosevelt himself

two

fairs

53% Copper, 35% Silver

The

service

and

which

.

stricken

sential

waging

are

the

scrap
con¬ President's birthday has been the
at
55,841,000 occasion for a series of
birthday
the previous high
balls, March-of-dimes campaigns

oyer

greatest

apply to

we

both in

estimates

at

Washington

Feb, 3, according to special ad¬
vices to the New York
on

"Times,"

which

also stated that the Presi¬
dent cut the cake and served it to
his traveling

companions, who in¬
Admiral Leahy,
Harry IZ
Hopkins, Rear Admiral Mclntire,

cluded

and others.

alloy
Experts of the
allotmerits bearing numbers under
Philadelphia Mint spent months Iraq Joins1 United Nations
CMP amendment No.'+6.Begin¬
testing various alloys and com¬
Formal
adherence
("pf Iraq to
ning with applications for April binations. Many requirements had
the Declaration by the United Na¬
rollings they are advised to dis¬ to be met. The new 5-cent coin
tions has been welcomed
by Sec¬
continue the 10 group classifica¬ had to resemble
closely the old retary of State Hull in an ex¬
by

used

now

identify

production

orders

authority

instead

and

to

by

appropriate
CMP claimant agencies. They are

not

was

one

in

in

easy.

color

freedom

The

and

alloy

new

and

appearance

from

serious

had

to

tarnish.

be

hard

advised to continue

change of notes with Ali Jawdat
al-Ayoubi, Minister to Washing¬
ton.

'

■

use of PD169
enough to resist wear and to take
Iraq declared war on the Axis
through
second
quarter clean-cut
impressions from the
Powers on Jan. 16; this was noted
but to place all CMP orders un¬ dies
at ; the
Mint.
The
bullion
in our issue of Jan.
der amendment No. 6 first and
28, page 375.
value could not be more than the
In his note, dated Jan.
follow in priority sequence orders actual
16, the
value of the coins, lest the
for which form 298 have been new
Iraq Minister said that his Gov¬
'nickels' be

forms

.

melted down and

filed.

'

:

"Details

of

1

•

procedure

used

for other purposes.
"At
one
time
WPB

govern¬

5.0

4.2

5.7

ing

6.8

4.5

4.1

5.4

transition to CMP in second quar¬
ter
have
been
included
in
an

stainless

steel

to

the

amendment to the priorities regu¬
lations. Z This is to assure ma¬

the

"The wage increase problem occupies the main
stage this week,
with the War Production Board's jurisdictional
dispute at Washing¬
ton and several price developments
drawing their share of attention
from the metals and metal-working
industries," says "The Iron

"Tonight

.

wars,

in ,,1942

7.2 -7

Higher

are

much in the great fight
infantile
paralysis that,

so

more

is begin¬ nickel is expected to result in a
ning to affect methods of apply¬ saving of 300 tons of the scarce
ing for steel tonnage. Plate con¬ and critical metal for use in es¬

their PDX298

"Please tell all of those who

helping

prompt¬ manity and both of them headed
■% for victory."
%
>
Scrap, Iron and
This was the tenth time the

.•

^'Institute
Steel

5.9

etter Balance—Prices

Office of

Price

Standards

•

"Application
trolled

extended

more
1

on

House

message

large accumulations from against
even though the visits I have
been
last year, which have
making in certain distant parts
not yet been prepared for
ship¬
prevent my return to the capital
ment.
Borings and turnings are
still
a
problem and' opinion is today, they are giving me once
divided on the effect of the re¬ again a truly happy birthday.

4.5

Change—Outpui

yards f:still

its
steel

The

late

5.2

Show Little

to

several

contain

drives

7.1 >/:■.:

v;

able

for

are

than carbon steels.

5.8

6.3

-

'

1942___

v

7.8

7

4.3

7.7

6.0

,7.2%

•:'V 7.1
'

5.3:

7.8

•

.6.1

.

5.3%

8.5

6.7

—

1942

September.

bar
steel

tions

Insurance

(25)

(25)

7.7 ;;'

j.J'
.

COMMON STOCKS
Banks

7.7

194J

200

Utilities

7.2

1942

August,

YIELD

Railroads

(125):.

,

„

1942

the

been

Feb. 8 stated in part:

on

covered

Average

Industrials

April,

of

in

all requirements up to third quar¬
ter except for such orders as are

-Yearly leverage yields in the years 1929 to 1941 inclusive and
monthly average yields for 1941 will be found on page 2218 of the
June 11, 1942 issue of the "Chronicle."

May,

Cleveland,

have

reserves

With nickel no
longer used in
fairly steady, the minting of the coin as a re¬
demand
and
delivery
showing sult of a request by the War Pro¬
little change with billets and large duction
Board, the new 5-cent

sumers

of bonds us£d in computing these indexes

1942,

Common Slock Yields

June,
July,

arid 1,622,400 tons
'•, ■ ■'

"Steel markets

"typical" bond

price quotations.
They merely serve to
comprehensive way the relative levels and the relative
movement
averages the latter being the true picture of the bond market.
;
v
:
a

of

summary

1,698,700 tons

ago,

alloy grades much

1941—

"These prices are
computed from average yields on the basis of
(3aA% coupon, maturing in 25
years) and do not purport to show
level or the
average movement of actual

illustrate in

"Steel"

markets,

2.14

—

1942

week

one

melters

weeks.

a

2.89

2.77

3.23

■

2.06

_

4

the

announced

2.90:

3.23

2.06

—

5

"

99.3%

ago,

represents

Corporate by Groups
Baa

3.17

8

8^ compared wth 99.5%

and

U.S.
Govt.
Bonds

Y--:

Feb.

on

the industry will be 99.3% of
capacity for the week beginning
Feb.

AVERAGES!

Closing

Institue

of

'•

'

113.31

BOND

on

107.98

113.70

■,v-

1941—

6

Feb.

Steel

99.20

9

Feb.

and

94.71

8

Low

Iron

118.41

Daily
Averages

High

American

White

follows:

accumulate

109.97

(Based

Low

the

115.24

'•1,.

ago

1943—

High

producing

117.80

MOODY S

Feb.

steel

steel cases."

The

Years ago

8,

for

of

increased.

116.85

1942

Feb.

equipment

be

108.88

;

1942

1 Year

Feb.

will

117.14

1943—

High

manufacture

c'ases

fight against
Since
the

had not yet returned to

Washington from the Casablanca

"Salvage sections

"It is understood that in second

1 Exchange Closed

High

.

the

work

war

Paralysis Funds

President Roosevelt's 61st birth¬

108.70

117.02

„

8

fn

from

117.05

.

15

/

of

shifted

117.04
„

22

1

of

to

President Thanks Nation
For

the

117.04

_

•V
Jan. 29

i

changing

115.43

108.88

109.97

paid

112.75

99.20

108.88

115.04

to

more.

117.12

117.60

in

unless higher wages can be
to
restrain
workers
from

asked

117.09

108.88

cop¬

bring demand in line with supply.

117.09

117.07

;

14%,

Some

.

2

aluminum

115.63

.

*

and

112.75

5

3

marketv has

scrap

99.04

94.56

115.04

were re¬

17%; alloy steel 15%

16%

per

and

Indus.

94.56

108.88

.

difficulty

worse

steel

copper,

P. U.

6

4

given

were

"Principal

R. R.

117.10

_

CMP

of

claimant

aluminum for the second quarter,

117.08

.

8

,

,

14

material supply to manpower and
the situation promises to become

duced

Govt.

Bonds

the

production is expected to provide
additional castings orders.

Requests for carbon steel

Yields)

Avge.

Daily

Averages

can

K

under

cuts

mines

new

week

agencies

PRICESf

(Based on Average

that

more.

are

their

MOODY'S

U. S.

fact

charge
"Last

yield

given in the following tables:

1943-

the

585

PRP

terials

units

to

in

the

period

manufacturers

of

pending

thought
meet

have

sufficient

a

been.

could

need.

quantity
be

of

released

This

ideal

an

problem,;;; but

would

solution

of

develop¬

war

ments made it necessary

to with¬

receipt of allotments under CMP draw the offer. Mrs. Nellie
Tayby extension into second quarter loe
Ross, Director of the Bureau

of

a.;: basic
percentage
quarter authorizations.

"The

-situation

of

first

of

the

had

..

in

Mint,

to

with

and

resume

her

their

ernment

desired

"to

subscribe

more

officials

associates

experiments

concretely to the common
program
of purposes and prin¬

ciples embodied in the Atlantic
Charter, since they 'coincide with
the aspirations of the people of
Iraq,' and that it desired 'to make"
its

contribution

against the
In

in

welcoming

ranks

of

the

the

.struggle

enemy'."

common

Iraq

United

the

into

Nations,

on

behalf of the United States which
is

depository for the Declaration,
Secretary Hull on -Jan. 22 said:

different

reinforcing
alloys.
Age," bars continues
unsatisfactory to
"Among
other
requirements,
11), further adding in part as follows:
steelmakers, WPB orders limits the new coins must work prop¬
"It is very gratifying that Iraq
"Apprehension already is being expressed in some quarters over a
ing production almost exclusively erly in vending machines.
This is taking a position at the side of
possible bituminous coal strike;
to rerolled rails, leaving a
large proved troublesome and the Na¬ the freedom-loving nations which
"Beehive furnace
April 1, and speculation has aris¬
coke prices
its

in

en

issue

today .(Feb.

whether

the

CIO

might

have been raised 50 cents
per ton

to reopen its contracts with

by OPA, effective Feb. 3, after a
survey of 60
plants.
This will
help the oven operators to absorb

over

move

of

leading steel companies, following
indications

of

tion with the

union

dissatisfac¬

"Little Steel" wage

the

increased

cost

of

coal, but it

stabilization

will

pay

unbalance in the aggregate
supply
of
beehive
coke,
which- arises

policy allowing 15%
increases between Jan. 1, 1941

and May 1, 1942.
"A

direct

push

v :

by

1

,

not

the

remove

threat of

an

high union

principally from the manpower
problem, particularly at the small¬
dustry wage contracts is not likely er, marginal units.
right at this time, in the opinion
"Much
interest
centers
upon
of informed observers, but agita¬
Lake
Superior iron ore prices,
tion

tonnage

of off-heat steel which
could be utilized for this
purpose
instead of being remelted as
scrap;
Efforts
to
have
this
ruling

Vending
by various

changed

not be

with

The

can

be

ex¬

pected.
"The

Controlled

Materials

"Discussions

are

underway

con¬

cerning several extra charges
upon
one

established

at

about

this time of year in advance of the
new

Plan, amplified by several im¬
portant new regulations this
week, is expected to remain un¬
changed basically.

certain

customarily

kinds

pig

of

steel

iron prices

and

on

also

in at least

area.




formal opening of the
navigation
season.
It is believed that OPA
will resist any blanket increase in
ore

that

ing

quotations

despite

mining companies
for

creased

relief
costs.

to

help

are

fact

press¬

in¬

meet

However,

prices paid for iron
may be

the

ore

average
in

1943

slightly higher because

restriction

has

of

"While

no

new

been

orders

for

do¬

freight cars were placed
January a number of orders

placed

last

year

frozen

and

of

Standards

was

to

help find a solution.
machines are protected
devices

so

success.

mestic
in

Bureau

called" in

they can¬
operated with slugs. Con¬
sequently it was necessary to find
broad¬ a new alloy ,: that
would match

continued,

indication

ened to include four Pacific Coast
states formerly not covered.

officials toward revising steel in¬

by local unionists

being

are

little

tional

WPB have been released.

within

limits

the

electrical

by prepared, analyzed and tested
til a satisfactory combination

15,000 of the 20,000 to be built in

evolved.

first half have been released from
the frozen orders.

mechanisms

Sample
were

coin

-

Foundries

ing

dominate

to

behalf

of

United

the

un¬

obtained

Feb.

Feb.

Friday,

invariably be rejected by
vending machines, because of low

implement electrical resistance."

for

great

Feb.

Monday,

'

Two

into

Lqw

—-

9

Jan

Jan.

244.3

244.5

26_..—244.2

242.7
226.5
239.9

9

220.0

2

FeZ lZZZZZ.
2

245.0

244.9

——-—

Feb. 9Dec. 22

Jan.

245.0
244.5

244.8

Jan.

11943^^
Low,

'

6—

ago,

ago,

—

—i

8

Feb.

weeks

Month

—

3—

4

5_——

Saturday, Feb.

from

would

2

Feb.

Wednesday,
Thursday,

stances

manpower,

take

of the United Nations."

Feb.

Tuesday,

ago,

of

I

from

High,

lack

depository

Moody's Daily

1942

agricultural

as

On

of the

Mlllllll

Year

of larger

world.

welcoming Iraq

in

pleasure
the ranks

cause

in¬

the

selector

decline

some

the

Government

States,

for this

and also In

the

Declaration,

Tuesday,

a

em¬

in

resources

struggle against the powers seek¬

simple, binary alloy, such as cop¬
in orders for some
purposes and per-silver, scientific tests immedi¬
some
have
curtailed
operations ately
showed
that
such
coins

note

themselves to

full

was

eight
manufacturers
and
sub¬
"Pig iron supply is definitely jected to numerous tests.
easier and all essential users are
"Although the Bureau of the
being
given
would
have
enough
for
their Mint
preferred
a
needs.

pledged
their

con¬

ductivity, the magnetic perme¬
ability, 'the resilience and the
weight of the old nickel.
"Samples of various alloys were

About

have

ploy

—

—

245,-v

240.3

THE COMMERCIAL & FINANCIAL CHRONICLE

586

Market Value Of Bonds On N. Y. Stock
The New York Stock Exchange

announced

the close of business Jan. 30, there were

show net income of $11,203,223,957, while 252,065 show a deficit, of
$2,283,795,190, and 43,741 have no income data (inactivecorporations).

Exchange

Feb. 8 that

on

The

income

tax

1,132 bond issues aggregat¬

•

ing $72,880,365,437 par value listed on the Stock Exchange with a
total market value of $71,038,674,932. This compares with 1,136 bond

aggregating $72,992,873,380 par value, with a total market
value of $70,583,644,622 on Dec. 31, 1942.
In the following table listed bonds are classified by govern¬
mental and industrial groups with the aggregate market value and
average price for each:
issues,

CORPORATION

RETURNS:

■''

.A

•

$

$

U.

Government

S.

etc.)„
companies:

S.

U.

(lncl.

Cities,

State,

N.

Amusements

__

Automobile

*

38,281,254

*

Tax

$

;

37,878,457

101.43

12,146,414

97.48

12,842,163

15,431,250

15,300,000

75,635,725

102.07

75,818,063

Electrical

35,318,750

103.77

36,287,500

'

•

','199,479

21,498

10.78

8,826,713

2,376,511

26.92

102.10

57,133,708

235,360,219

233,443,537

net

no

«,jJ3,700

Paper

and
Petroleum

74.38

9,628,428

100.14

40.157,285
90,915,294

58.61

40,729,173
ro* <118,716

100.94

40,897,316

publishing,..__
_

____

Railroad

592,015,699

67.05

6,577,910,560

84.56

12,252,188
74,229,635

income:

11,529,360

100.50

11,615,400

19,436,045

70.64

18,323,684

503,097,510

100.26

504,745,759

103.33

37.210,510

electric

147,326,648

105.64

146,264,243

Miscellaneous

107.86

3,321,566,691

107.11

96,467,875

101.20

94,566,375

99.20

l,Lx*,_9o,V0d

66.39

Foreign
Foreign

108.31

1,199,519,670

60.11

85,624,662

252,065

117,882,813

64.98

31,382,643

105.66

30,910,730

104.07

13,767,991,138

81.33

13,487,086,784

1,364,153,547

62.26

1,304,302,478

736,069,559

companies

85.80

717,769,925

83.52

government

companies..

■

■

97.47

'

'

4ew

96.70

70,583,644,622

The following table, compiled by us, gives a two-year compari¬
of the total market value and the total average price of bonds
the

England

income"

tax.

Market Value
$

31__

Market Value

1942—

Price

$

$

Jan.

93.84

50,831,283,315

'•A

1941—

Feb.

i-'.

31—.___*_
28

Mar. 31...——

50,374,446,095

93.05

28:

50,277,456,796

92.72

ipr,

57.923,553,616

31

93.73

viay

29

59,257,509,674

30

94.32

Tune 30

59,112,072.945

Total

May

30—

52,321,710,056

94.22

June 30_

53,237.234,699

94.80

July

53,259,696,637

95.04

Sept. 30—

53,216,867,646
53,418,055,935
55,106,635,894

94.86

Oct.

31__

Aug. 30

Sept. 30_
31

29

31

—*•

July

31——

61,277,620,583

31

62.720.371,752

—5.61

United

54,812,793,945

30—

64,543,971,299

31

70,583,644,622

1943—

94.50

55,033,616,312

Jan.

7

Nov

14

29.9

71,038.674,932

%

-V-A

14.3

"A".

WEEKS

RECENT

•"■''-'-A

'■■■■■

'■

:

■■

'

29.0

15.5

14.5

1942'

.

1941

3,761,961

**_—

% Change

r

•

1942

3,368.690
''

+12.8

3,775.878

3,347,893

21

3,795.361

3,247,938

3,766,381

3,339,364

+12.8

5

3,883,534

3,414,844

+ 13,7

Dec

12

3,937,524

3,475,919

Dec

19

'■

3,975,873

26

;

3,655,926

_*•—_.

'■

v

.

1940

1932

2,858,054

:

1,798,164

year

the

1,806,225

in these times deserve the appre¬

ciation of all who

1,860,02.

3,234,128

+

2,757,259

1,414,710

1,637,683

13.0.,

■

"—-*_*_

1942

Jan

2

3,779,993

3,288,685

Jan

9

3,952,587

•3,472,579

Jan

16

3,952,479

3,450,468

Jan

23

over

+ 14.9

3,002,454

+14.5

:t 1932

2,845,727

+13.8
•.:

3,012,638

A'; 1929

1,619 265
1,602,482
1,598,201

1,542,000

1,588,967

2,994,047

1,588.853

1,728,203

2,989,392

1,578,817

2,976,478
2,985,585

1,545,459

1,718,304

3,423,589

A: "Reach out and

2,993,253

1,512,158
1,519,679

1,699,250

3,409,907

3,974,202

1,736,729
1-717,315

1,706,719

for every boy

3,440,163

15.5

+

4,186,455.57

:

777,174.36

-7

.

213,773.02

Total-- net

Current

990,947.38

expenses.

net

AA; aAAAL^DA
5,177,402.95

—_____

earnings__-_______A--_*_A*-*___u_A_'_A___*__L__*

1,413,105.25

-Additions to -current net earnings:
1 /'■'.'■"■k -A LA- '-Aa^A'A;••ALvAA
--'
Profit on s&les of U. S.-. Government securities.—..-.
378,310.71

lVhA>";

;
•

2,996,155

+14.7

...+ 14.0

•

Jan. 30 that the volume of

of

1942

$6,100,000,000, reflecting a decline of $3,400,000,000, or
The decline of about $10,000,000 in December was
much less than the recently prevailing rate of nearly $300,000,000 per
month, but when allowance is made for usual seasonal influences
was

36%, for the

year.

this decrease is not out of line,
Board pointed out.

the'f
——
a.'a'""
'consumer credit were

.

Other

additions

Total

;

additions

to

current

net

8,538.17

:

earnings..

Total current net earnings and additions to current net earnings
Deduct'ons from current net earnings: '■ ,;v,v,'AA-; -'A'-r AA'AA-'- -.'f:-:- V;.
Reserves

for

Retirement
Total

Net

system

of

from

advances........

base

adjustment)

current

net

*_______

.

United

States

"A large part

602,793,00

,

1

107

•><?

Treasury

-

(section

13B)

(section
'

•

/

71

4 021 06

9551507.94

'

■

____________________

sumer

the

.

'

1

'

107

1«1

1'i

car

its

statement

of

condition

of

the member bank-reserve account,

to be

and

$49,341,867 in the capital account.

factor

curtailed
the dominant

used

loans and

$71,445,226 in the U. S. Treasurergeneral account, and $89,583,329 of other deposits. Other liabilities
included $2,419,593,470 of Federal Reserve notes in actual circulation

from

disappearance of new

business and greatly

of Dec. 31, 1942, the Reserve
as
$4,753,969,031, compared with resources
of $3,962,603,505 at the end of 1941.
Total deposits in the current
statement are given as $2,086,924,359,
consisting of $1,925,895,804 in

Bank reported total assets of

Aside

indebtedness.

virtual

sales
In

occurred
of con¬

liquidation has

in all the important types

237,632 13

______

surplus

of the decline of

$3,400,000,000 in consumer credit
during 1942 was due to the de¬
crease
of about $1,500,000,000 in
automotive sale credit, but sub¬

.

*

to
'

'

A."

stantial
earnings:

paid

'_

•

592,793.00

earnmgs_i_L-__-____j.__.____

cars,
the
instalment

in

sales

credit field has been the substan¬

tial

reduction

duced

of

new

maturities.

New

sale debts continue

these

much faster rate and
therefore the volume of outstand¬

-

Secretary of the Treasury Morgenthau has made public the first
of

a

series

Income

for

of

tabulations

1940, Part

in

advance

of

the

report

"Statistics

of

Compiled from Corporation Income, De¬
clared Value Excess-profits, and Defense Tax Returns and Personal
Holding Company Returns," prepared under the direction of Com¬
2,

missioner of Internal Revenue Guy T.
"The

number

of

corporation

Helvering.

The advices state:

income, declared value excessprofits, and defense tax returns for 1940 is 516,783, of which 220,977




decline

.

Christmas

.buying

heavy, the rise in consumer
credit based on the purchase of
was

less

than

has

been

in

previous years.
Charge
by $120,000,000
and instalment credit for the pur¬
chase of commodities other than
automobiles increased
by about
accounts increased

$20,000,000.

These

additions

to

'""V"

;":a.a

credit

to

-/%/

.

or

a

'■%'

;A:'%/--V-.' -,J

"a,--

v'

make it possible

who wants to be a
a meeting

Scout to have

place and the necessary leader¬
ship as a service to your country.
Carry on! Make your slogan for
1943—'Tobghen up, buckle down,
carry
on
to victory'—a definite
vital

and

part of all of your ac¬

tivities." AAA■ A LA A-'A'A''

;AA< ja' ;'

:>

-•

VAA

Phila. Reserve Bank
gs

and

half

than

instalment

that

loans,

At

automotive

end

year

America,
most im¬

a

offset

sale

credit

outstanding was estimated
be about $500,000,000.
; •

Earnings of the Federal Reserve
Bank of Philadelphia for the year
ended Dec.

654,
the

31, 1942, were $1,230,compared with $821,911 in
previous year. Total earnings

.

"In the field of instalment loans,
December loan volume was above
that

of other

current

high

with

the

outstanding
than

recent

months,

result

by

declined

,

$50,000,000

nearly

or

CREDIT

credit.

(Short-term

Figures

In

4%

of

._{

dollars.

estimated)

■>.

•

deduction of expenses

$4,174,302 in 1942, compared
with $3,344,162 in previous year.
Current net earnings reported for
1942

were
$1,218,076, compared
$698,465 in preceding year.:
The following was also reported

with

the

in

j

,..

OUTSTANDING

millions

before the
were

more

from the end of November."
CONSUMER

but

remained
that loans

repayments

Philadelphia "Inquirer":

The

additions

to

current

net

earnings for 1942, including $276,774

of

*

arising from profits
S.

U.

on

sales

securities

Government

Increase, or
r

•*
,

•

1

;

'

;

decrease irom:

12-31

11-30

1942

'

1942

'

12-31

1941, \

—13

-3.422

—87

"Total consumer credit 6,090

—1,446

Instalment sale credit:
Automotive

was

usual

the

more

a

"Although

goods

nearly

of

in

amount

under present
obligations are

but

rate,

conditions

paid off at

Treasury Releases Income Data For 1940

of

incurred, although at a re¬

ings has been reduced rapidly.

V

decrease

a

''AAA;-.'-';-

say :

by a
$90,000,000 m

automotive instalment

ment continued:

1,799,954.13

10,000.00

;

net

Dividends
'

(interest

deductions

Transferred
1

industrial

on

earnings

Distribution
Paid

losses

The Reserve Board's announce¬
386,848.88

;

—

1,726,161

The Board of Governors of the Federal Reserve System reported
consumer credit outstanding at the end

on

6,590,508.20

dealing with

portant aspect of our manpower
problem.
v
"So I bring greetings on this the
33rd birthday to all the members
of the Boy Scouts of America and

Cub

j
(Figures In Do'lars)

are

.

1,733.81C

Bonsumer Credit Outstanding Down 36% In '42

statement

,

currency.J...—.

in

leaders

are

confident that full

am

of the Boy Scouts of

who
,1941 .v'L"

1

reserve

America. I

ers

1942

27

Expenses

>

..

1,554,473

Feb

Federal

effort.

war

"Certainly those who help to
make boys physically strong, men¬
tally awake and morally, straight

3,052,419

20

of

boys and
scouting is

that

+ 13.8

Feb

Cost

it

3,495,140

1,718,002

3.421.639

Assessment for Board of G0vern0rs_.-_4-i-.ii

scouting,
to

1,840,863

13

...

see

1,563,384

Feb

r'.

with

to

+ 13.3

3.468.193

___*_L____*___**_

staunch

a

1,818,169

3.474.638

:

always been

of

1,518,922

3,976,844

Earnings
Operating

have

2,975,704
3,003,543

3,960,242

•

proving to be so essential in
determination to win the war.

'1,793,584

6

expenses

the value of scout training in de¬
veloping knowledge and skill, as
well as courage, self-reliance, re¬

1,510.337

'1943 A;

Week Ended-

reports for the calendar

earnings and

armed

our

1,531,584

30

Bank's

"

training camps and on
the battle fronts have emphasized

1,475,268

'

■Ian

Reserve

of

in

2.889,937
'

Feb

Chicago

having

-

2,931,877

+16.9

$6,590,508, against $5,089,095 in 1941. Operating expenses in 1942
were
$4,186,456 and total net expenses $5,177,403, leaving current
met earnings at $1,413,105.
In 1941 operating expenses amounted to
$3,581,893, total net expenses were $4,227,533 and current net earn¬
ings of $861,561.
The

leaders

as

coun¬

cooperation will be accorded lead¬

1942 net earnings of $1,197,161, as compared with $1,024,465 in
previous year. Total earnings for the year just ended were

for 1942 follows:

our

2,839,421

'

'

of Chicago

"The
forces

bution to the

■1929

1,520,730

'

,**—

by

training.

de¬

been

mainatined at its full strength and
effectiveness as a practical contri¬

•';;

'
1

11.7

+

Dec

Chicago Reserve Bank Net $1,197,161 In '42
Bank

scout

than

more

have

try have been identified
had

nected

Kilowatt-Hours)

•

1941

over

i:

date

to

who

scouting, and now, in
war, as your Honorary
President, I urge every one con¬

13.5

30.6

(Thousands: of

that

those

corated for heroism

time

1943

Reserve

of

believer in

% Change

The Federal

informed

327

-"I

21.4

11.0

>

.

.

our

12.4

*

21.2

;

heartily approve the slogan
adopted for the Boy Scouts for
1943 — to 'toughen up, buckle
down, carry on to victory.'
I am

12.2

14.7

14.0

FOR

97.47

,<

of every American.

concern

are

'

':L 7.1

29.6

28

:;

30—

:

3.7

^

12.6

"

1

13.8

Nov

96.70

94.80

•

Nov

96.11

Dec.

the

Jan 16

7<0%

>'

9.6

15.6
.

12.3
.

,,

20.1

.

Dec

Nov.

Scouters:

sourcefulness-and initiative which

Jan. 23

3.6. AAA...

12.2

20.4

■

96.48

95.25

tax.

L--%-.A;A

YEAH

7.7

Nov

94.74

A'-."A

;

.

Week Ended—

.,15.0

States__

A-;

96.18

64,843,877,284

'V

excess-profits defense

Jan, 30

At»

11.8

:

——

Week Ended-

96.08

62,765,776,218

31—:

"Fellow Scouts and

-"Today, with the nation at war,
we
observe the 33rd birthday of
the Boy Scouts of America. The
job of winning the war and assur¬
ing a decent and lasting peace is

men

95.76

Mnr.

:

—*———

DATA

95.50

30.

value

OVER PREVIOUS

3.1

,

__*.

95.64

Apr.

52,252,053,607
52,518,036,554

Nov.

,—2,602

deductions."

declared

5.1

95.63

Mar.

.

Rocky Mountain——
°acific Coast—*—.

95.97

58,140,382,211

31—___*—

Feb.

,'Dec.

46,343

-

——

States—.*

95.13

57,584,410,504

Jan.

Oct.

-

"Total

Feb. 6

,

Central—,—

Vest

95$24

56,261,398,371

and

^Includes

Atlantic—

Southern

Average
Price

Average

Dec.

*

43,741

.

' ■:'

:

'

Central Industrial

Exchange:

1940—

who have been decorated for

9.16

PERCENTAGE INCREASE

Middle

on

-6.69

191,648

Institute, in. its current weekly report,-esti¬
production of electricity by the electric light and

the

that

59.31

,/

71,038,674,932

listed

-18,073

Output For Week Ended Feb. 8, 1043

79.17

abroad

oper.

businesses..

''Total

defense

Major Geographical Divisions—

son

270,138

2,092,148

industry of the United States for the week ended Feb. 6, 1943,
was approximately 3,960,242,000. kwh., compared with 3,474,638,000
kwh. in the corresponding week last year, an increase of 14.0%. The
output for the week ended Jan. 30, 1943, was 14.7% in excess of the
similar period in 1942.
;A:; '■A'A■

58.55

67.77

men

Roosevelt's message made
public by Dr. Elbert K. Fretwell,
chief Scout executive, follows:

power

106.90

87,821,009

reported

than 327 of the service

,'a 1 Mr.

The Edison Electric
mated

109 Q41.999

...

utilities

companies

Miscellaneous

between
income

104.88

3,330,813,597

(operating).
(holding)

Communications

S.

•94.51

.

Skews 14.0% Bain Over Same Week Last Year

102.37

...

Gas and electric

difference

Electric

Utilities:

U.

■14,938

■;

99.67

37.560.510

_

Steel, iron and coke_**_*_*

Total

927,841

15,806

'

•'

inactive corporations——.

101.25

Textiles

President

The

more

"I

101.30

building and operating
Shipping services

S.

76.27

1,216,450

returns_________*_a____

(Includes

-82.96

103.00

Ship

Tobacco

the

64.11

12,107,994

75.475,333

_

*____;

President
7, urged that
scouting be "maintained at its full
strength and effectiveness as "a
practical contribution to the war
Feb.

on

heroism had been scouts.
12,144,292
1 130,744.

A

103.33

6,820,418,100

merchandising

Rubber

U.

"

100.18

103.79

anniversary,

effort."

""Net income" or "Deficit," for 1940, is the amount'reported fcr declared value
excess-profits tax computation adjusted by excluding.net operating-loss deduction;.-for.
1939, is the amount reported for declared value excess-profits tax computation and is

100.16

56.85

:

33rd

</
Returns of

71.66

39,605,903
88,117,086

Machinery and metals,
Mining (excluding iron):

and

of

of greetings to the
of America on their

message

Scouts

that

■

Land and realty

Gas

.16

.

.

excess-profits tax.

'Deficit

103.87

Financial

Retail

Number

101.46

104.73

-823

,

.

2,283,795

value

1

103.68

57.492,936

equipment

Per Cent

220,977

*

"Returns with

102.31

or

amount

•:

a

Boy

Roosevelt

:•

515,960

102.00

11,094,151

1939

In

„

tax

Declared

95.07

102.88

.

—*

'

•

,

11,203,224

liability:

101.12

101.21

13,166,896

Chemical

,

income

INCOME,

NET

L,
"V

•

516,783

returns

"Net

.104.12

102.51

RETURNS,

.

Increase or decrease (—)

returns„__*_____A___

with net income:

Returns

■

Business and office equipment.

Building
i

of

Number of

Price

55,074,485,435

•

Number

Number

$

104.29

AND TAX

OF

1940

Income

55,170,520,688

NUMBER

:

Y.

___

1939,

DEFICIT,

Average

Market Value

Price

AND

.(Money figures in thousands'-of- dollars)

-Dec. 31, 1942-

Average

-

Market Value

Group—

1940

Boy Scout movement

,

•

-

-Jan. 30, 1943-

President Praises

is

$2,144,291,692, and the declared value excessprofits tax is $30,743,550.
'
L.,
"The increase or decrease, 1940 over 1939, in the • number of
returns, net income, deficit, and tax, follows:

of

as

Thursday, February 11, 1943

496

__

1,019

1,428

—53

____

1,450

+ 120

loans 1,065

—10

Charge accounts

Single-payment
"Includes

786

+ 17

:

tlnstalment- loans

service

credit

not

—

—

—

746

333
135

shown

tlncludes repair and modernization loans.

The Board noted that these fig¬
ures

of

consumer

credit outstand¬

ing will be released
in the future.

in 1941
earnings
$126,688 including $110,404
profits on sales of U. S. Govern¬
ment securities.
In 1942 $150,000

additions

to

current net

were

transferred

was

which

were

ments,

in

from

compared

reserves

of require¬

excess

with

$2,475

in

1941.

Distribution

separately.

whereas

$435,226,

were

net

the

of

earnings for 1942

lows

—

$32,097;

each month i banks,

paid

to

.

U.

dividends
$707,874;

surplus, $498,682.

$1,238,654
was

S.
to

as

member

transferred
,

fol¬

Treasury,
to

Volume

Number

157

4150

THE COMMERCIAL & FINANCIAL CHRONICLE

average of

Daily Average Crude Oil Production For Week

$61,724,000 for each of the 5 weeks. On the weekly aver¬ able
basis, 1943 construction is 53% below that reported for the 6-week mines

age

is

daily

aver¬

down 53%

figure for the month of January, 1943,

rent week are:

the

Office

for

the

of Petroleum

Feb.

Total

weeks

Construction—_I_
Construction

Public

Administration for

War. Daily production
30, 1943 averaged 3,826,500 barrels.
Further details as reported by the Institute follow:
Reports received from refining companies indicate that the in¬
dustry as a whole ran to stills on a Bureau of Mines basis approxi¬
mately 3,698,000 barrels of crude oil daily and produced 10,339,000
barrels of gasoline; 3,888,000 barrels of distillate fuel oil, and
7,452,000
barrels of residual fuel oil during the week ended Jan.
30, 1943;
four

5, '42
$161,090,000
21,647,000
139,443,000

Private

recommended by

as

Construction

;

State and Municipals

:

ended Jan.

Federal

129,900,000

and

had

in

at the

storage

end

of that

AVERAGE

CRUDE

OIL

PRODUCTION

(FIGURES

IN

BARRELS)

"

'

.

■

«'

t

1

'■

V.

V

' ;

\

..

.

•P.A.W,

'

•State

Recommen¬

dations
■

'

|

-—Actual Production—

Allow¬

'

Week

ables

Ended

400,600

400,'600

+347,750

310,000

1291,800

Kansas
Nebraska

Panhandle

3,400

—

—

1943

•''//':/'

Texas

East

Central

East Texas

South west'

/

Texas--

Total

/

Texas
'

1,330.900

1,329,850

1.270,000

'TP'J— 2.''

247,700
359,500

—78,300

74,826

—

(Not inci. III.

—

7,000

■

f

Total East of Calif.

—10,500

238,950

370,000

4; 2,250

15,750

20,750

'.+

4,300

'90,500

1,900

59,700

51,300

4 4,650

86.900

89,050

150

22,450

20.800

■/'50

6.450

6,650

97,000

119,350

4,124,200

1'

6.350

.

105,300

98,300

•V\

-

3,060,900

815,000

recommendations

22,300 ;;

'

§815.000

"

./

and

-13,300

765,500

-

3,826,400

state

allowables

3,062,650

636,300

3.826,500

—22.600
the

production

of

wells

Details

tion

the allowables.'

natural

The

of

Bureau

gasoline and allied

Mines

products

reported tire daily average produc¬

October, 1942, as follows;
Oklahoma,
30,000; Kansas, 5,200; Texas, 103,700p Louisiana, 20,500; Arkansas, 3,000; Illinois,
10,300; Eastern (not including Illinois and Indiana); 10,400; Michigan, 100; .Wyoming,
2;600; Montana, 300; New Mexico, 5,700; California, 42,200.
tOklahoma,
7

-!

27.

Jan.

a.m.

tThis

Includes
several

Kansas,
-

the

is

shutdowns

basic

net

and

which

.

RUNS

TO

4

calculated

month.

on

31-day

a

With

basis

and

the

exception of
fields for which

to

Conservation

STILLS;

'.j

Committee

PRODUCTION

GASOLINE,

RESIDUAL

FUEL

OF

GAS

OIL

OIL, -WEEK

of

California

GASOLINE;
AND

Oil

DISTILLATE

ENDED

JAN.

Producers.///,;:

STOCKS

30,

established

OF

FUEL

FINISHED
AND

{\

Figures

*
t

'

S

plus

,

I

Vy

T;'

in

this

therefore

4

y

C' '

;4

section

on

a

§ Gasoline

reported

totals

V

'

basis■.

4

;/•

v

Capacity

Poten¬
tial

District—

?

4 V Crude
Runs to Stills

% Re-

Rate porting

;

-

at Refineries

j,4

Daily

Includ.

tStocks

.*

tStocks

}Stocks

Finished

Of Gas

of Re-

and Un-

Oil and

sidual

Distillate

Fuel

% Op- Natural finished

Average erated Blended Gasoline

Fuels

Oli

•Combm'd: East Coast,
Texas
ana

.*•

Gulf,
Gulf,

Louisiana

-

Louisi¬
North

Arkansas

'and Inland Texas.

111.,

Ind.,

88.2

_

U.

S.

',basis ,Jan.
U.

Tot.

basis
U.

S,

S.
Jan.

Bur.

basis

Jan.

4.930

38,721

406

>2.980

2,173

18,094

.1,103

7,339

1,508

1,329

67.3

326

1.864

368

to

B.

of

84.1

1,401

19,832

11,850

55,179

of

353

84.9;

99
687

4,806,

85.9

3,698

31,

10,595

689

•i-S 523

4,751

/ 2,574

76.9

10,339

t88.830

37,057

70,763

85.9

3,615

75.2
'

1942

3.842

"10.291

87,102

-

38,034

13,292

100,864

41,012

89,822

the request of the Petroleum Administration for War.
tFinish'ed/ 78,884,000
unfinished, 9,946,000 bbls.
|At refineries, at bulk terminals, in transit and in
pipe lines.
§Not including 3.888,000 bbls. of gas oil and distillate fuel and 7,452,000
bbls. of residual fuel oil produced during the week ended Jan. 30, 1943, which com¬

""At

with 4,006,000 bbls. and 7.316,000 bbls., respectively, in the preceding week,
3,817,000 bbls, and 6,640,000 bbls., respectively, in the week' ended Jan. 31, 1942,

pares

Volume Almost Double Last Week's Total
of 95%

over

the preceding week,, but 49%

below

the

prices,

Maximum

Regulation

314,

oz.

in

market

London

during the last week was un¬
changed at 231/2 d. an ounce troy.
44%0 and the Treasury's price

Daily Prices
The

unchanged from those ap¬
pearing in the "Commercial and
Financial

Chronicle"

located

for

the

(200,000 tons'
of

claimed

line

second

quarter

a month, made
imported, and

domestic,

copper)

al¬

copper

up
re¬

about

was

in

with

expectations. Approxi¬
mately 75% of total requirements
will

be

new

copper.

supplied by producers of
y-:

'

of

as

July

380.

page

Mtge, Bankers

Meet In

to

Based

the views of mort¬

upon

experts, the consensus of
opinion seems to be that investors
in

mortgages

will

have

around

15% of their loans paid off in full
in

alloy

25.00

13 alloy
alloys,

25.00

1943, according to Charles A.
Mullenix, Cleveland, President of
the Mortgage Bankers Association,
of America. Opinions recently ex¬
pressed by men of long experi¬

23.00

ence

Per Lb.

Commercial

ingot

20.50

Incendiary bomb nlloy___
23.40
50-50 Mg-Al alloy_____—___—23.75

other

11

in

-

banking

mortgage

run

alloy, which from "not less than 10%" to "at
was
reduced
per
pound, the least 15%" as to the amount of
ceiling levels'-represent a decline mortgage pay-offs. -It is stated
from the prices in effect during that it is agreed that higher in¬
comes of large groups of citizens
1942 of 20 per pound.
:
:
Excepting

50-50

.

OPA reports that there are only
two

private

nesium

producers

of

mag¬

operating in this country,

who

are

earning

more

in

war

in¬

dustries than they ever did before
is
the
principal
reason,
it
is

of which accounts for

a small
agreed.
This
year
would
then
output purchased by Metals Re¬ probably be the biggest in our
obtaining
serve
without
price
restriction. history for paying off mortgages
copper on the basis of 120, Valley,
Other producing plants are owned in full.
and foreign metal is
coming, into
The
subject, which was dis¬
the country at the equivalent of by the Defense' Plant Corp. and
operate under various arrange¬ cussed at the Asssociation's New
11.750, f.a.s. United States ports.
Conference last month, is
ments for compensation which in York

Pr i

c es

Domestic

-

/ /

continued; unchanged..

consumers

of

last

week

the

are

previous.

for

the

those

below

were

more

.•/:•//>•

lead

Common

week

needs

are

Lead ; V■ ■•/

/.

:

Sales

one

no

will

case

be

for

February's

than one-half

cov^

ered, with consumers slow about
taking on March metal.
\i'
Orders with

affected

price regulations.

OPA

by

'

_

'■

scheduled
its

■■

for

second

Clinic"

Tin

further

"War
the

at

review

and

Drake

at

Post-War

Hotel, Chi¬

cago, Feb. 26 and 27.

Exports of tin contained in tin
These prepayments—as paying
by Bolivia amounted off mortgages in full before ma¬
to 38,901 metric tons during 1942,
turity are called—will be directly
which compares with 42,887 tons in line with the President's
sug¬
concentrate

a preference
rating
in
1941.
Out
of
the
tonnage gestion that during the war pe¬
higher are no longer
exempted from the restrictions shipped last year, Patino supplied riod citizens should use their sur¬
tons;
Ilochschild,
9,966 plus income to pay off debts, Mul¬
imposed
by
conservation
order 18,171
said.
Mortgage
bankers
M-38-C, WPB has ruled.
With tons; Aramayo, 2,833 tons; medi¬ lenix
um
producers, 4,721
tons;
and heartily approve of the idea be¬
increasing assignment of ratings
small producers, 3,210 tons.
cause
it constitutes an important
in the AA series, the lower rat¬

of A-l-j

ing

no

sents'

a

longer necessarily
vital

OPA
for

to

or

war

has

fixed

was

an

has

commission

been

named

by United States and Bolivian

ceiling

leadvarsenate.
halt

A

repre¬

use.

This

prices

was

done

inflationary price rise,

stated.

thorities to study
tion

at

Bolivia's

Production

au¬

the labor situa¬
at

increase, and,
except for maintaining imports of

concentrate, the outlook for
greatly restricted
consumption in non-essentials is
minimum, zinc
producers in some instances find viewed as encouraging. The stock
that they have fair
tonnages on pile of concentrate is comfortable.
hand that will probably
Prices; remain
unchanged.
go into
the Government's reserve.
WPB Straits quality or "Grade A" tin
dovtm

to

to

the metal under

a

view

the

zinc situa¬

for

future

tion as "tight," because of uncer¬
tainty about zinc concentrate sup¬

lows:
Jan.

for

this

zinc

was

unchanged

at

81A<^i

St.

shipment
..

.

Jan.

30

Feb.

I

tablished

the

quotation

of

the

leading interest for ingot at 20Y2^

April

52.000

52.000

' 52.000

52.000

52.000

52.000

52.000.

52.000

52.000

—,

52.000

52.000

Feb.

2

52.000

52.000

3

52.000

52.000

Chinese tin, 99%
ued at

at

51.1250

a

-

52.000

52.000

grade, contin¬
pound.

Quicksilver

Though

week

some

Coast
in

or

have

on

the

experienced

because

of

added:

that

be admitted,

heavy

considerable sacrifice
of mortgage

choice

on

mean

the

part

lenders because their

investments

quidated

however,

prepayments

are

thus

li¬

long

before maturity—•
with little possibility of replacing
them

for

the

duration.

A

mort¬

gage loan is among the most cost¬

ly

banking operations to handle
the lender's standpoint and

from

requires constant attention, super¬

standing.

servicing while 'out¬
Obviously, when many

of them

are repaid much quicker
anticipated, the large initial
expense involved often means a

than

loss to the lender in the end.

"Contrary to what many might
think, heavy prepayments cause
no great joy to
mortgage lenders
except that they will

properties

a

output during the last
so

who

vision' and

.

Feb.

Louis.

fol¬

as

March

52.000

29

Jan.

was

'
Feb.

28

toward avoiding in¬
flation, according to Mr. Mullenix,

"It must

Texas

the

tin

With consumption in non-essen¬

tials

contribution

tin mines.

of tin

smelter continues to

decline




Price

under

Cents

report added:
an

18,620,625

silver

gage

established

effective Feb. 1, follow:

Pacific

brings 1943 volume to $308,622,000,

was

The

Chicago Feb. 26-27

The

Magnesium
corresponding 1942 week as reported by "Engineering News-Record"
on Feb. 4.
Private construction climbs to its highest weekly volume
The OPA on Jan. 30 announced
since last October and is 160% above a week ago. It is, however, 52% maximum base prices for virgin
lower than a year ago. Public construction is up 88% compared with magnesium ingot and alloys. The
last week, but is 49% under the 1942 week. Federal work tops the ceiling prices are in line with the
preceding week by 92%, while declining 46% from last year. The recently reduced schedule that es¬
The current week's total

1941

pound, retroactive to Jan. 1 of

a

All

country's enlarged
smelting capacity. Prime Western

Engineering construction volume for the week totals $87,796,000,
increase

600,000,000
17,000,000

and

the current year.'

plies

Engineering Construction $81,798,000 for Week

about

copper,

A.S.T.M. No.

"!/ The large tonnage of

continues

an

in part:

say

Zinc

bbls.;

and

on

pro¬

further

71,216

;

obtain
of

A.S.T.M. No.

it
4,806;.

Mines

of

17,891
.

M.

1943

23,

\

M.

1943

30,
B.

91.2

the/leading

Copper

558

88.1

48.0

Mountain

California

Tot,

68.2

740

80.1

;

156-

85.0

—--i-

Ky.;

Okla., Kansas,

Rocky

1.663

84.8

89.9

Appalachian

tons

OPA last week

publication

■:

•"/(:■/>%■■■ ;-V\ -Production /'/'Y/V'/.,
Daily Refining

of
The

v

of .Mines

in Canada

finery), lead, zinc, and Straits tin

steel, f—-—

ceiling; price for
The maximum price

ducer.".

;

include

Bureau

600,000

some

alloy

a

quotation

.

estimate of unreported amounts and are

an

i

silver

During the second quarter of
will

conforms with the current market

1943''

(Figures in Thousands of barrels of 42 Gallons Each)

"

t

1

entire

best suits their operating schedules or labor needed to oper¬
11 days shut-down time during the calendar month.

as

of

UNFINISHED

;
(

Jan.

the

ended

total equivalent to

a

AND

•

of

week

entirely and of certain other
15 days,1 the entire'State was ordered shut down
definite dates during the month being specified; operators only being

§ Recommendation
CRUDE

as

for

for

are

exempted

ordered for from

were

leases,

allowable

exemptions

were

for 11 days, no
required to shut down
ate

Mississippi, Indiana'figures.
'•
-/.V.'.

///■,'.

shutdowns
fields-

Nebraska,

of

•

2.

agencies

withheld. In ref¬

prices,

all

in

and

were

magnesium.

may

than

of

to

erence

claimant

Feb.

how the metals will be

on

distributed

be incapable of producing the allowables granted, or may be limited
by pipeline proration.
Actual state production would, under such conditions, prove to
be less

announced

aluminum,

carbon

went

;

petroleum liquids, Including crude oil, condensate and natural gas derivatives recovered
from oil, condensate and gas fields.
Past records of production indicate, however, that
certain

of

3,871,350

9,300

represent

'

3,325.050

773,850

Board

the, various
of

tons

100,800

4

89,950

.•/; /

.

3,309,200

Total United States

pounds

60,800

■/. ;■/

105,300 1

California

1943,

79,750

Production

•/*//'

24,700

:

Colorado

74,500

94,500

94,500

_

Montana

75.050
58,900

u,

,

forward

On

Silver
Production

schedule, the War 31, 1942,

150

"

63,700

war.

Markets," in its issue of Feb. 4,
"First allotments of aluminum, copper, and
alloy steels under
the new Controlled Materials Plan were made on

2,200

^

York.

daily prices of electrolytic
copper (domestic and export, re¬

stated:

366,800

ti6,600

New

were

285,800

;

*. •

the

business $195 has been done.

at

"E. & M. J.' Metal and Mineral

339,350

74,900

107,600

■

Mexico

1,350

'•

Ind.)

Michigan

Wyoming

+

flask,

CMP—Magnesium Price Set

omitted for the duration of the

);■

81,000

247,400

:

229,550

17,200

91,950
'

+ 55,300

,

272,600

„

/ /:•;':

339,550

50,000

Indiana

1,350

•.+

level and

held at 350.

Editor's Note.—At the direction of the Office of
Censorship
certain production and
shipment figures and other data have been

250,150

v.-

'347,500

•P.A.W.

& Quarter Made By

186,550

308,650

~

91,850

Mississippi

•

/

80,000

291,000

i

Total Louisiana

Illinois

242,450

101,600

327,600

•

Coastal Louisiana-

New

•200,700■

high

a

The New York Official continued

Non-Ferrous Metals—Allotments For Second

75,500
144,350

•'166,500

North Louisiana

Eastern

88,350

./ 136,450

/ /"

166,700

U ,426,843

1,426,800

—

'

Arkansas

5,250

■

the result
the country
Imports are

with

suffered.

holding to

in

251,200

2,550

..

„

308,800

Texas

•

291,350

100

$3,906,000

408,850

—15,700
—

101,600

Texas

1942

347,900

327,600

-

Coastal

.;

1943

201,100

''''

financing for the year to date, $5,406,000, in¬
State and municipal bonds, and $1,500,000 in
RFC loans for industrial expansion. /../
cludes

Jan. 31

> 1,100

136,700

'*v/■

West

New construction

Ended

Jan.30

88,400
*

"■

Week

Ended

Week.

+2,350

——

Texas——.

North Texas

■■

•

■.

'

4 Weeks

Previous

Jan. 1

Oklahoma

*■'

/

*

"

January*

•

•

From

.

Jan. 30

Beginning

310,000

■

'&

Change

expected,

that total output for
not

other
better

bridges, $26,000; industrial buildings, $8,410,000; commercial build¬ during November amounted to 1,ings and large-scale private housing, $1,900,000; public
buildings, 622,647 oz., making the total for
$47,400,000; earthwork and drainage, $347,000; streets and roads, $1,- the Jan.-Nov. period last year 18,895,000; and unclassified construction, $20,565,000/
118,286 oz., according to a pre¬
New capital for construction
purposes for the week totals $908,- liminary report by the Dominion.
000, entirely State and municipal bond sales. This compares with Bureau of Statistics.
Output dur¬
$2,424,000 reported for the week last year.
ing the first eleven months of

week

'

■

In the classified construction
groups

gains over last week are in
sewerage, industrial buildings, public buildings,
and unclassified
construction. All classes of work are below their
respective totals
for the
corresponding week last year. Subtotals for the week in each
class of construction are:
waterworks, $675,000; sewerage, $578,000;

88,830,000 barrels of
gasoline; 37,057,000 barrels of distillate fuels and 70,763,000 barrels
of residual fuel oils.
The above figures apply to the country as a
whole, and do not reflect conditions on the East Coast.
DAILY

conditions,

said to be doing

are

71,356,000
The price situation in quick¬
1,354,000 silver has not changed.
Nearby
70,002,000 metal is holding at $196(?/.$198 per

'

-

weather

extraordinary demands of the war
Feb. 4, '43 program are being met promptly,
$81,796,000 including Lend - Lease require¬
10,440,000 ments.

Jan. 28, '43
$41,855,000
4,018,000
37,837,000
1,349,000
36,448,000

9,543,000
:

than

has

Construction volumes for the 1942
.week, last week and the cur¬

oil production for the week' ended Jan. 30, 1943 was
a
decline of 22,600 barrels from. the preceding
week.
It was also 44,950 barrels per day less than
during the cor¬
responding period last year and 297,800 barrels below the daily

barrels,

average

Private work is 57% lower, and public construction
from a year ago, when adjusted for the difference in

the number of weeks
reported.

age gross crude

8,826,400

o

period in 1942.

Ended Jan. 30,1843 Off 22,600 Barrels
The American Petroleum Institute estimates that the

587

unfavor¬

in

the

drive

to

hold

greatly aid
down

infla¬

tion.

Mortgage

every

word of the President's ad¬

bankers

vice in this regard."

endorse

President

Glass I

Talks At Casablanca
President Roosevelt told a spej
cial

conference

press

Casablanca meeting with

that his

Churchill

a mili¬
1943 plans
by forcing

primarily

was

drafting

mission

Winston

Minister

Prime

British

tary

Feb. 2

on

for

winning the war
unconditional
surrender

the

of

Axis Powers.

*

*

promise he made in his
annual message to Congress—that
the United Nations would strike

These

figures

Income
Net

combined

their

reached

unanimous

a

Total

income

Miscellaneous

and

the

regarding

reported the

Inc.

his journey,

the Associated Press

President

following:

length

on

at

some

problems. He said he thought

cal

things'

along pretty
well. The problem in North Africa^'he said, is essentially a mili¬
tary

Generals Charles

between

French

1,308,030

49,492,704

571,497,495

846,095,912

30.944,877,

567,703,322

463,722,709

2,282,845

1,557,803

25,383,884

17,009,432

29,387,074

820,712,028

446,713,277

21,081,585

17,980,730

228,342,391

197,707,490

,

1

that every effort was being

modern arms
army under Giraud.

supply

French

78,814,220

8,343,898

76,731,762
713.080.683

stock

34,016,015

51,533,759

135.910.684

134,986,391

preferred stock

3,493,575

4,465,167

29,267,319

24,146,239

appropriations:

common-

On

of

fRatio

income

to

the

made
for a

of

i

fixed

-

■

-S3.38

2.48

1.63

All Class I Railways

-

1.82

v

of

those

should be

negotiated armistice, only an
surrender by the

unconditional

:/V:'.

Axis.

•

■

than

$522,091,189

$536,307,905

$499,467,843

$488,471.015

$1,120,469,559 '•

ments

$892,360,703

$850,549,884

$701,495,014

693,537,086

141,619,576

598,121.309

133,450.032

157,172,966

229,499,435

111,306,767

170,263,516

—

and

989.142

1,142,676

934,707

948,263

31,466,230

34,064,371

28,321,416

—,

receivable--

bills

from

39,736,605

(Dr.)

receivable

and

agents

ductors

;•
r

158,171,562

Gen¬
Kai-shek, he

64,111,391

412,679,174

326,879,940

136,759,387

508,775,912

437,309,795

408,254,956

351,680,861

30,691,004

28,755,337

29,398,868

26,730,505

speaking with a measure
of
sarcasm
about
suggestions
which he said came from certain

1,623,507
15,615,833

1,547,600

1,119,549

1,111.397

10,409,846

10,610,102

8,912,235

3,139,462,350

2,029.145,735

2,501,382,417

—————

———

assets

current

those

that

people

leaders

two

in

have been

on

the

par¬

He directed attention to the
fact that Russia is not at war with

geographically she can do nothing
in the war against Germany.-

$31,687,951

and bills payable—

(Loans

(Cr.)

balances

payable

wages

to

the

inquiry,

an

President said he had heard from

sions

to the
But he would

communicated

were

Prerhier.

Russian

"

Accrued

•

942,873,647

liabilities

62,901,932

liabiKties.

current

^2'fnJMn?
52,607,675

,•

28,513,912
853,819,063
48,423,289

K

yV

28,519,588
311,612,032
31,882,488

■

868,142,166

1,577,975,243

1,080,732,029

1.871,111,255

29,540,778
: i

'.'•'.fy ,V " •' ' ■ 1\-;r'

.J!'" Y'

30,596,538
348,345,417
44,071,918

31,110,461

liability—

tax

Total

'' -• "« ^

32,917,738

military matter. '

a

when

marked

he re-

eternal,

springs

; Hope
►

' "V " >

t-Y'Y

current

Other

.

ing it

de-

m,

Unmatured rents accrued—

reaction, call¬

not discuss Stalin's

dividends

256,229,284

315,819,130
316,831,868
YYYY
1
:
Y'Y
A,
71.894.557
45,612,799
52,784,839
44,061.234 7
32,989,693
33,296,228
9,618,596
4,510,307
9,266,33d
88,480,410
86.935,949
73,214,785
70,223,496
52,607,675
70,223,496

accounts

unpaid—
matured unpaid
Unmatured interest accrued
•ClQ.X'ed

„Y

.

387,518,659

.

matured

Unmatured

45,067,346

90,276,678

61,540,579
?

pavable

*i

Stalin since the Casablanca deci¬

$4,762,950

$1,324,750

$57,702,024

and

—

Miscellaneous

Interest

,

130,740,312

——

accounts

Audited

;

car-service

and

reporter

a

won¬

U. S.

accrued

of

Analysis

tax

1

<

224,884,387

816,494,963

Government taxes.

whether he hoped at some

Stalin.

future time to confer with

ernment

taxes

1

*•'

214,164,221

750,778,082

-

•

infer-

to

reporters

asked

Roosevelt

.Mr.
not

anything

that

was

going wrong just because he was
making public

not

Stalin exchanged.

and

he

the messages

.There

were

more

than two years

*101,6

*101.2

95.9

+ 0.1

+

0,6

117.2

116.6

115.4

101.3

+ 0.4

+

2.0+16.2

104.7

104.8

104.2

93.9

+ 0.3

+ 0.8

118.4-

peace

future

to come must eliminate any
from

threat

coast to the

African

the

products—^

118.4

118.4

118.4

115.7

0

0

+

2.3

96.8

96.8

96.7

96.7

93.6

0

+ 0.1

+•

3.4

80.1

80.1

80.1

79.9

78.8

0

+

0.3

+

♦103.9

"103.9

*103.9

*103.9

103.6

0

0

+

0.3

110.1

110.0

110.0

109.6

+ 0.1

+

0.5

commodities

Miscellaneous

materials

farm

All

phere lying closest to Africa.
.

faithfully

to

the

of

request

Office of Censorship that
be' maintained

about

up

the

secrecy

the

move¬

ments of his party, the President

touch

that

he

with

never

out

was

Washington,

of

even

while traveling by air. He placed
the

length

of

his trip

at

16,965

miles.

During Week Ended Jan. 30

on

Feb.

Statistics, U. S. Department of Labor/an¬
for continued gains in primary

that except

4

for fresh fruits and vegetables and for livestock,
there was very little change in commodity markets during the
last week of January.
The Bureau's comprehensive index of prices
market

prices

i




'

:: n./u

0

;

+

1.2

90.4

88.4

0

'

+

0.1

+

2,4

108.0

107.6

106.7

96.4

+ 0.3

+

1.5+12.3

92.5

92.0

0

o

0

+ 0.2

0

0

92.5

92.5

♦100.3

•100.3

*100.1

96.4

+

.

0

,;

+

0.5

+•

4.0

+

0J! +

3.9

+

0.1

1.7

i

*98.4

*98.3

*98.2

,94.7

*96.3

*96.3

*96.3

*96.2

94.7

than

;;

: New

The

92.5

*100.3

than

other

V.

;

Capital Issues In Great Britain
statistics

following

have

been

compiled

the Midland
capital, which
subject to revision,, exclude all borrowings by the British Gov¬

are

These compilations of issues of

Limited.

Bank

italization

of

funds

reserve

securities which

by

new

and undivided

add nothing

profits; sales of already

to the capital resources of the

whose securities have been offered; issues for conversion
redemption of securities previously held in the United Kingdom;

company

short-dated bills sold

in anticipation of long-term borrowings; and
municipal and county authorities which are not specifically

limited.

The

figures

based

are

upon

the prices of issue.,

OF NEW CAPITAL ISSUES IN THE UNITED KINGDOM

SUMMARY TABLE

Year—

,

237,541.000

1931———88,666,000

384,211,000

1932

—

■

1933—

235,669.000

1934

203,760,000

i.;

1935™

1924—223,546,000
1925—w_—_

—„

1936—217,221,000
170,906.000

1929————-

1939—

362,519,000
253,749,000

——

—

118,098,000

f

314,714.000

-

150,190.000
182,824,000

—

253,266,000

-

113.038,000

132,869,000

;_T_————
—————————

219.897.000

J

—

1940

:

————w

66.294,000

4,096.000

—_T——

1941—-i-+U——2.326.000
1942———„Y-v—
—uiYY' 3,907,000

1930—236,160,000

r-YY/:' NEW CAPITAL ISSUES IN THE UNITED KINGDOM
-YYY-: V.Y"-Y [Compiled by the Midland Bank, Ltd.]

S:;:.'- '

i:-: v].• ••

Total

+

'

:V

•

.

'

1935-—————

■

.

-Geographical distributionBritish
United

357,000
399,000
36,000

190,808,000

43,335,000
3,544,000

4,096,000

2,326,000

•

2.852,000

195,000

£

'138.768,000
^ 92,746,000

118.098,000
66,294,000

—

countries

18.038.000
23.353,000
24,938,000
21,284,000
' 18.313.000

'+161,934,000

217,221,000

—

countries

-

1937-^.L—170,906.000

1939-

Foreign

overseas

.

Kingdom

£

.

182.824.000

1938_L-i^A^AL^^Yi_^

1942-_—3,907,000

1,927,000
3,871,000

3,060,000

7,200,000
4,067,000

4,646,000

January Department Store Sales

nounced

Governors

Feb.

on

Federal Reserve System anU
of department store sales de¬
December to January and the

of the

the -value

that

4

seasonally

adjusted

from

index

than

less

clined

of

Board

The

average

to a new high level of

rose

142% of the

as

i

• -

Change

Jan. 30

District-

York-.
—

Products

Foods—Average

and

products advanced 0.4% during the week
Quotations for sheep ranged from about 5
than

a

half

and

1%.

In

addition,

Grains

seeds.

of

prices

farm

and foods rose 0.3%.
to nearly 10% higher

1

*—4

prices

+14

+13

+

4

•—-6

1

*+4

+16

t

t

t

t

+1

+ 20

+28

'+26

+ 15

* + 25

+31
+24
+22

as

a

markets

advanced

for

barley,

City

largely the result of higher

prices for butter in certain eastern markets, for most
,

.

■

'

,i"vi-

f

.

•

cereal prod¬

Season-

Chicago market.

'j ;>■**

.

■

i

*+

5

*'+

1

+

i

"

;

•

>:

■:

'

\

INDEX,

WITHOUT

0

+13
—1
+8

+7

+26

+24

+35

+36

+22

+23

+19

+22

+15-

6

+14

+27

+32

+27

+ 12

+

14

+ 19

+

+

2

ADJUSTMENT

Jan.

(1935-39

AVERAGE—100)

3

30—
♦Revised.

refer

tNot
tn

shown

dai]"

- -

Jan.

24

Jan.

31—'———

_

17

107

;
_

-

__

—————

-

131

119

_

:

separately but included in United States total.
{Monthly .
sales in calendar month; January, 1943, figures esti*"
•
• * ,• —
*15 + ,~v
i

average

weekly- sales,.

10--

Jan.

121

—;

Jan.

132

*119

16-

mated from

.

9

138

—

23

indexes

+

;

1942—

9

Jan.

1

SEASONAL

112

Jan.

1

—

7

2

Jan.

5

+24
+24

1943—

Jan.

.■

—

0

+

S. total

WEEKLY

5.4%:

"The advance in the foods group was

——r

Francisco

peanuts

cotton,

Rye, on the contrary,

oats, and wheat.

corn,

+

Dallas

result of weakening

higher for

were

fractionally

declined

5

+1

5

—

.

(per cent)

Jan. 2 Nov. 28 Oct. 31
+11
+12
+14
+-7+5
+13
*+-8
+8
+17
+ 9
+14
+18
+14+19+16
+9
+11
+16
+10
+12
+21
+12
+14
+11

2
7
—5
0
—

—

0

——

138
108

157

-——Four Weeks Ending—-—.

Jan. 30

Jan. 9
+11
—6
*—5
+. 2
+-4
+23
+4
+13

+13

—

Kansas

U.

*—

1—

5

+

Louis—

San

4

—8

Minneapolis

Cows were up more than 2% and hogs over one-

week ago.

of

market

Jan. 16

—5

—13

138

+

Chicago

Atlanta

St.

5

Jan., 1942,.

Nov., 1942
;

—16

——

announcement further stated:

Jan. 23

__7

Philadelphia

,

from corresponding period a year ago

—

_—:—

Bureau's

125
222

—14

Boston

Richmond

The

Dec., 1942

142
111

-One Week Ending——-

1

Federal Reserve

New

Jan., 1943

seasonal

0.1% to 101.8% of the 1926 average. In the
past month the index has risen 0.6% to the highest point in nearly
years.

*

.

.

(1923-25 AVERAGE=100)

seasonal variation—-—-—
adjustment————

for

Adjusted

Without

.

STORE SALESt

'■

INDEX OF DEPARTMENT

Cleveland

of nearly 900 series rose

ucts, citrus fruits, and for apples in the
'

0

90.5

products

Jan.

noted

96.7

102.9

90.5

108.3

products and foods,—

.

The Bureau of Labor
nounced

"Farm

radio for living

99.5

104.1

90.5

*98.4

commodities

farm

■

Advanced G. I %

After giving a word of praise to

the press and

99.5

104.1

articles—,

other

2.9

99.5

104.1

—,

produots,—.

commodities

0

1.6

99.5

a.,—,——

Semimanufactured

110.0,

+ 0.1

104.1

—

1.7

portion of this hemis¬

+11.8 *

products
lighting materials,
Metals and metal products—
Building materials
Chemicals and allied products,
Housefurnishing goods

and leather

Y

agreement that the

+

Textile

Board's

.

.

S

One, he explained, is the greatly
increased effort Brazil is making
second,

6.2

♦101.7

compared with a previous peak- of 138 reached
in. January and November last year.
; ,
YY Y

<

an

.

stop on the

to combat submarines. The

1942

105.0

1923-25

Vargas ,of Brazil.

is

97,448,331

103,040,981

123,461,030

'

after date of issue.

home to talk with President.

he said,

■

accruals,

two highlights, Mr.

Roosevelt said, of his
way

—126,378,684

-

including the amount in default;. ;fFor. railways not in
receivership or trusteeship the net income was as follows: November, 1942, $94,951,304,
November 1941 $32,545,962; for the eleven months ended November, 1942, $665,824,963;
eleven months ended November, 1941, $430,629,686.
/{Includes payments of principal of
long-term debt (other than long-term debt in default) which will become due within
six months after close of month of report.
liFor railways in receivership and trustee¬
ship the ratio was as follows: November, 1942, 2.35; November, 1941, 0.81; eleven
months,. 1942, 2.16; eleven months, 1941, 1.18.
^Includes obligations which mature not
♦Represents

1-31

1943

;

117.7

products

—

dered

1-2

1943

1-31
1942

commodities———_ •101.8

All

Farm

1923

Traffic

1943

215,795,000

$113,625,503

$128,102,746

$126,458,721

$150,501,187

months——.

six

within

1943

1-23

1-2
1943

1-16

3-23

1943

—

Dividends

Replying

1,623.784,017

maturing

debt

{Funded

1-30

'

'

'

[Compiled by the Midland Bank, Ltd.]

Selected Liability Items—

ley.

Japan and that China is so situated

assets.—

current

Total

added,

should

1199243786006-—— 19387
Commodity groups

loans of

re¬

touch with Joseph Stalin and

Chiang

'■

or

,

dividends

and

receivable

Rents

130,141,964

re-

supplies——

and

Materials
interest

77,955,776
177,078,761

—

accounts

,ceivable

Other

eralissimo

'-\.y ■
a.':".;/"' Parcentage changes to
w.v""'Jan. 23,1943 from—
*

issued

con¬

—

—

Miscellaneous

t

Y;''

'?■'}, YY-'- ,1'r

YY (1926=ioo)

.•

ernment; shares issued to vendors; allotments arising from the cap¬

car-service

balance

ceivable

complete

v

and

balances
Net

V

invest-

cash

Special deposits

.

.

The conferees were in

:

com¬

Temporary

.

.

>'

'

•Preliminary.

Cash

the formal re-emphasis placed

belief that there

other

affiliated

etc.,

bonds,

1941

1942

stocks,

in

notation:

plete reports.
V; yv..v.,.u.v.Y
:
The following table shows index numbers for the principal
groups of commodities for the past three weeks, for Jan. 2, 1943,
and Jan. 31, 1942, and the percentage changes from a week ago, a
month ago, and a year ago:
'-V.t
' v

All

Not in

Receivership or Trusteeship
Balance at End of November
1942
1941

,

Balance at End of November

investments

the following

period of rapid changes caused by price controls,
materials allocation, and rationing, the Bureau of Labor Statistics
will attempt promptly to report changing prices.
Indexes marked
(*), however, must be considered as preliminary and subject to
such adjustment and revision as required by later and more com¬
During the

Raw

'

Selected Asset Items—

Loans

conference

the

materials

advance."

to

makes

Bureau

Manufactured

he thought

said

Roosevelt

highlight
a

168,156,938

<•

,

charges

Traffic

Mr.

4,172,420

1,861,862

On

;

,

continued

The

Hides

equip.);
defense

panies

information

He volunteered the

building

the

Fuel and

and

(way
and

of

11,020,840

Dividend

helping the

was

beard

,

113,592,368

—

Federal income taxes——

Giraud,

Henri

and

leaders,

of the enemy.

cause

no

141,290,155
425,105,137

1,301,204

47,754,148

projects —-—.j

talk of dis¬

stir up

to

Gaulle

de

on

163,790,629
406,405,662

121,135

Class I Railways

tried

putes

was

11,079,908
38,291,661

118,538

111,309,523

structures

:

to

10,708,579

36,927,031
.

Roosevelt said that anyone

Mr.

for

index

increased 0.1%

■"

one.

who

group

•r--..Y.'v-'-Y

_™

charges

Amortisation

going

were

25,318,226

1,031,426,031

y;

•

tNet income

the situation in French

Africa/especially the politi¬

North

33,920,973

1,417,593,407

roads

charges—
fixed charges

Depreciation

dwelt

President

The

•

2,126,620

fixed

after

1,056,744,257

i

80,437,581

equipment

Contingent

'

.

5,193,787

deductions

Total

•

,

161,346,516

s
■

leased:

for

•"

137,789,962

for

—

Fixed charges:

Rent

'

J

—

available

charges

$918,954,295

$1,309,041,877
142,472,503
13,631,186,'
82,564,201
1,451,514,380

166,540,303

■

1941

1942

1941

deductions

..

income

fixed

Other

by

For the 11 Months of

$68,933,015

.

comments

other

to

;;Y

■

All Class I Railways

'

1942

Items—

♦Interest deductions
i

'

.

operat. income- $148,949,000
Income Y—_
"■
17,591.303

Other

agreement on how to fulfill that
pledge.

/'•;

ry.

from

through

'■■■

For the Month of November

Income

As

■'■ ■;
'

<

•

and Mr. Churchill had worked out
and

subject to revision and were compiled from

are

representing 136 steam railways. The present statement
excludes returns for class A switching and terminal companies. The

ha^d in Europe—reported that he

staffs

.

Commodities—The

"Industrial

132 reports

report is as follows:

a

i

because of higher prices for spruce lumber
States for the month of November and the 11 months ending with
and for linseed oil.
Quotations were lower for rosin and turpen¬
Prices for boxNovember, 1942 and 1941.'
4"
'/■' Y,;... ' tine.1 Prices for fatty acids were slightly higher.

come

President, pointing out that
the meeting was also designed to

plans1

Railways For November

"showing the aggregate totals of selected in¬
and balance sheet items for class I steam railways in the United

The

fulfill

prices'
;
"In the past four weeks,* average prices for farm products have
advanced 2% while foods have risen 0.8%;} Y r
^
H
i
"Lower prices for
bran and middlings caused the level for
cattle feed to drop 1.4%.
'
'

statement

a

meal

declined.

The Bureau of Statistics of the Interstate Commerce Commission

has issued

.'Thursdays-February 111943

>

lower prices, were .reported,.;for .eggs- and.corn
-Y
•'
-,jy
j v' /"'L

ally

Selected Income And Balance Sheet Items

Reports On

•

FINANCIAL CHRONICLE

THE COMMERCIAL 9t

588

Volume

Number 4150

157

THE COMMERCIAL & FINANCIAL
CHRONICLE

Met Value Of Stocks On Hew York

Weekly Coal And Coke Production Statistics
The

StockExchange Higher On Jan. SO

total

and

In the

The

of

Jan. 30, 1943

Dec.

31,

Market Value

_

348,165,032

28.43

587,815,428

17.01

544,820,141

481,609,370

22.61

459,645,706

——,

Building

—

Business &

office

__.

equipment—
335,632,788
:—u—5,737,762,160
1,457,325,498
661,872,781

50.51

821,582,313

Chemical...

16.24

2,689,695,695
41,423,097

28.81

28.46

machinery

Financial
Food

:U

———

....

Garment

Land & realty

„

...

Petroleum—
Railroad

Retail -merchandising—
Rubber..

iron &

Utilities:

41.38

100,756,997

r 5.39
40.65

401,609,810

...

28,56'

1,149,550,402

.....

-

-

.42.92

••

Gas

& electric

Gas

&

(operating)—,,
(holding)
■
Communications—

„

21.14

9,297,851

2,035,846,382

.....:

«.

'

.

28.49

•"

coke_.u—.

Tobacco
'

24.83

437,253,303

:

_

Shipping

'

2,076,660,475

.....

& operating...—..
services.—

Textiles

17.04
26.79

Ship building
Steel,

21.14

23.23

3.051,314,709

___

.

1,834,217,063

electric

>

' 19.82

806,495,798
3.029,485,511 "

8.42
72.45

.

Miscellaneous——...——86,916,890

11.85

623,740,683

.18.38

898,027,477

22.19

117,256,576

19.98

41,410,585,043

28.16

U, S. companies oper. abroad
Foreign companies....
Miscellaneous businesses
All Listed

Slocks

I

...

.

|||

,

26.83

on

Market Value

28.56

Oct,

31—

42,673,890,518

30..

41,848,246,961

28.72

41,890,646,959

28.80

Dec.

31-

28-

Mar. 31—

Apr.

40,279,504,457
39,398,228,749

-

—.

-

—

30—

May 31-

-

June 30—

July

31-

28—

.'j.—

—

Aug. 30—

——

Sept. 30—

—

39,696,269,155
37,710,958,708
37,815,306,034
39,607,836,569
41,654.256,215

Apr. 30
Ma.V

27.24

June 30

25.78

July

29

33,419,047,743
34,443,805,860
34,871,607,323
35,604,809,453
37,727,599,526

31—

25.84

Aug. 31————

27.07

Sept. 30—
Oct.

31_

—

41,472,032,904!

28.32

Nov.

30

37,374,462,460

28.02

Dec.

31

38,811,728,666

Oct.

31—

40,984,419,434
39,057,023,174

Nov.

29..

37,882,316,239

26.66

1943—

25.87

;

Jan.

23.39

tCommercial production

The

41,410,585,043

——

22.73
23.70

25.65
25.41

■:

v'--!

INDEX

1

[*1935-1939—100]
Latest
Week

Group

Feb. 6,

Total Index
25.3

1943

Foods___.

Preceding

Month

Year

Week

Ago

Ago

Jan. 30,
1943

Jan.

2,

1943

Feb. 7,
1942

137.5

137.8

136.3

148.5

148.5

150.2

159.0

159.0

164.7

23.0

Farm

Products

4,532,000

4,141,000 114,351,000

|

155,400

649,400

647,100

552,600

vj-

1,209,500

t

5,198,500

coal, and coal shipped by truck, from authorizea
fuel.
tComparable data not available.
§Subject to
V

colliery

■

railroad carloadings and river
ship¬
monthly tonnage reports from district

of final annual returns from

23,

the operators.)

Jan. 16,

1943

1943

1942

Jan. 23,

1941

••>:+

3

;

Jan.

Jan. 25, *

329

284

100

107

,93

181

216

226

i

i

1

and

1,480

-

tOther

Total

all

'Includes
on

and

Idaho

and
of

when the request fOT funds comes

before

240

29'

39

36

v;-

'33

''

7

6

'

»

,

93

39

.

It

18

32

82

37

34

27

41

."74

44

4- 70

"68

-

66

.

694

677

495

2,696

2,665
'141

2,583

143

^

144

8

407

,

29

these payments "is tantamount to
announcement

291

211

reverse

56

74

:

■

.

1,829

1,828

668

2

1

26

1,134

619
168

762
"V

i

**

11,200
1,047

1,007

12,247

'

*

11,575

12,582

11,305

the

of the
10,165
1,304

9,570

1,265

907

1,968

12,570

11,469

10,477

13,818

-

11,850

& O.

in

District and

South

Dakota

included

with

"Other

Western

States."

ttLess

than

120.0

York

City-

145.9

104.4

104.4

Cleveland

132.0

posal to take

or

For the year

was

v

Decrease-

.

■*

1941

Occupancy

127.6

127.6

120.1

Pacific

All

134.0

132.4

121.7

Food

+ 18%

+

+ 32

+ 28

+ 50

+ 10

+ 16

Beverages

16%

1942

Dec.
1941

Rate

Increase
or

Deer.

+ 20%
'

78%

68%

+

2%

+ 40

75

65

+

7

2

75

52

+

4

+

Coast

+ 28
—

—

+ 22

+ 34

+ 30

+ 42

90

83

+ 12

+ 26

+ 22

+ 30

+ 34

+ 22

82

69

+

3

+ 29

—

+ 30

+ 28

+ 29

+ 28

85

69

+

5

+ 50

+ 61

+ 48

+ 40

+ 60

75

52

+ 12

103.5

134.1

Restaurant

+ 18%
+ 23

+ 30

Texas

114.0

11%

Dec.

others

+ 38
__

Total
Year

—

+

36

+ 42

+ 44

+ 29

86

68

+

8

+ 26

+ 26

+ 26

+ 25

+ 30

71

59

+

4

+ 28 %

—

+

29%

+ 28%

+ 27%

+ 32%

61%

+

5%

15%

+

13%

+ 17%

+

14%

+ 24%

67%

+

4%

+

term "rates" wherever used refers to the
average
and not to scheduled rates.
*Rooms and restaurant
tThe

only.

74%

73%
sales

per

a

vast

Treasury to pay

a

sum

from ther*-

part of the cost

of living of certain consumers at
a
time when the consumer's in¬
is the

come

of

the

highest in the history

nation

and

when

every

available dollar is needed for the

prosecution of the war."

also

'

+ 27

Detroit

Chemicals and

+

Rooms

constitutional prerogative
Congress, but it is a pro¬

Representative
Taber
(R e p.,
N. Y.), ranking minority member
of the Appropriations Committee,

Higher

show the benefit of repeal.

Congress will

Representative Cannon added:
"It is not only an encroachment

r;

'186

""

that

its decision and repeal the

policy."

tt

Total

151.4




I

109

v3'|Wtl8

tt

Department's
a nplans to make

of

nouncement

16

153

-

gram last year and stated that the

Agriculture

'111

825

193"'

133

.

Jan. 28, that Congress had speci¬
fically barred such a subsidy pro¬

98

37

1,973

841

104

341

/

33

2,135.
,

192

8i4

3,402

Congress.

Representative Cannon (Dem.,
Mo,), Chairman of the House Ap¬
propriations Committee, said on

7

!

'

397 '

"

49

855

.

124

;•

*50

Congress and by leaders of three
national farm organizations and
is likely to be bitterly contested

.

.10

130

2,105

'

'

-Sales, Increase

104.4

42, 94.8.

*

2,085

'

73

/;

510

2,538

lig-

55

.80

•

88

:

tt

•Total

151.6

—

.

,

106

182.3

118.0

several members of

166

the first year to

was

104.4

combined—

This proposed program has been

criticized by

the proposal, ex¬
belief that the money
be
appropriated,
and
Representative Hope (Rep., Kan.)
ranking minority member of the
Agriculture
Committee,
argued
that
increased
farm
production
costs should be met through con¬

occupied

opposed

pressing

will

not

sumers'

increased

and

unused

purchasing power rather than
"having this amount added to the
public debt and loaded on the
shoulders of future taxpayers."

tRoom

117.6

achieving

213

DECEMBER, 1942, COMPARED WITH DECEMBER,

104.1

in

276

The firm's tabulation follows:

115.3

costs

311

15%, and alb of the
1934, while the occupancy
at 73% is the highest annual
figure since the compilation of these
reports began. The total average room
fate was up 4% over 1941.

117.6

added

the increased goals."

140

1942, the firm reports, the total increase,
departmental gains were the largest since

151.7

All groups

for

ers

607

December Hotel Sates

104.1

is

726

.

February bulletin, Horwath & Horwath, New York
public
accountants, report that December was a good month for
hotels,
with total sales increasing 28%. This was
the largest monthly gain
since early in 1934, which year scored
large rises both because there
had been equally large drops in the four
preceding years and because

115.3

payments

824

In its

104.1

incentive

806

659

on the N. &
W.; C. & O.; Virginian; K. & M.; B. C. & G.;
Kanawha, Mason, and Clay counties. tRest of
State, Including
Grant, Mineral, and Tucker counties, tlncludes
Arizona,
Oregon,
§Data for Pennsylvania anthracite from
published records of the
Mines.([Average weekly rate for entire month.
**Alaska, Georgia, North

Carolina, and
1,000 tons,

115.3

for

being offered to compensate farm¬

919

States

131.8

»

"This additional assistance will
be necessary also for farmers who
have not had experience in
.grow¬
ing some of these crops. The pro¬

190

2,111

operations

the B.

Panhandle

Building materials

;

production costs will go up.

213

8

coal

Metals

—

more labor and materials—
which naturally means that their

935

.'r

and lig*
nite————.
{Pennsylvania anthracite

6.1

Fertilizer materials-.

"To get this additional
produc¬
will mean that farmers will

tion

288
__

-

said:

166

.

:

7.1

Farm machinery

Secretary Wickard further

209

138

Western

149.6

Fertilizers,

new
payments really are
subsidy to consumers, not to
farmers," Secretary Wickard said,
explaining that "they will permit
farmers
to
increase
production
without immediate higher
prices."

200

—J,

129.4

.3

"The

a

121

Total bituminous

New

an¬

potatoes and fresh truck crops.

on

113.3

recently

a similar
program of "in¬
payments" for increased
production of dried beans, white

348

127

124.5

Department

1,352

34

(bituminous

129.0

.3

The

81

394

144.3

budget

179

(bituminous)—

nite)

130.9

1942-43

for the Soil Conservation and
Do¬
mestic Allotment Act.

479

Virginia—
Washington
•West Virginia—Southern
(West Virginia—Northern
Wyoming—

119.3

$100,000,000 in
$400,000,000 al¬

1,254

Utah

120.0

for

the

92

Dakota

•

148.1

to

565

.

640

Texas

190.5

asked

66

Tennessee—

147.5

be

addition

510

.

—71

South

Pennsylvania

194.6

•

483

Ohio

i:

>

To finance the
program, Secre¬
tary Wickard said that Congress

l

Missouri——

(lignite).———

150.4

.3

and dried peas.

1,345

Mexico——

North

133.4

127.6

of soybeans, peanuts, grain
sorghums, flax, sweet potatoes

l

I

129.0

drugs__—

ings

1,340

(bituminous £ and

150.6
.

subsidy program will
effect farmers who increase
plant¬

434

92

lignite)

the

pro¬

new

55

Miscellaneous commodities—.—

—._

**

,

195

______

Montana

150.9

127.3

(11923

2

375

Kentucky—Eastern
Kentucky—Western—;—
Maryland
Michigan

120.0

——

avge.

1937

6

98

—

Kansas and

147.9

—

Fuels—

The

gram

-

,

—

Jan. 24,

192

Indiana

and

an¬

$100,-

gram.

7,040,000

Oklahoma—89

Illinois—

New

new

000,000 "incentive payments"

7,586,000

182

Textiles

100.0

Feb. 2,
1929

31,

1942

4,314,000

dredge

iv'.

Arkansas and

Jan. 25

on

need

1,221,000
and

tExcludes

Chicago
Philadelphia
Washington

1.3

Jan. 30, ;, Jan.

.

1943

6

8.2

•

154,700

378

195.6

:

Livestock-

10.8

1Q49

.6

134.5

Cotton
Grains

17.3

COKE

158.7

151.0

AND

——Calendar Year to DateJan, 31,

375

135.5

Cottonseed Oil

ANTHRACITE

117.3

and Oils—

Fats

-

that

Tons)

Alabama——.

that

Compiled by The National Fertilizer Association
%

Net

:—Week Ended-

26.39
28.16

assuming
Note

is not directly competitive with coal
(Min
tSubject to current adjustment. ;
•

1,047,000
1,096,000
1,005,000 111,052,000

Jan.

23.42
24.20

22,011

coal

coal.

(The current weekly estimates are based on
and are subject to revision on
receipt of

21.41

lower last week, although
price changes in the group were about evenly balanced. Farm prod¬
uct prices were mixed.
In the farm product group advances in cot¬
ton, wheat, cattle, and hogs more than offset declines in corn, rye,
barley, and eggs; the net result was a small advance in the farm
product index.
Fractional advances also took place in the indexes
representing the prices of textiles and building materials. |.
During the week 11 commodities advanced and seven declined;
in the preceding week there were 19 advances and seven
declines; in
the second preceding week there were 14 advances and four declines.

Each Group

total,.—

I.

war

Wickard
a

+

Iowa

22.36

of

Net-Tons)'

J

22.4Q

29,595

equivalent
pound

per

"

24.46

24.02

'26,648
into

u.

1Q4*?

((Revised.

State—V;.

essential

centive

ESTIMATED WEEKLY PRODUCTION
OF COAL, BY STATES
(In Thousands of

18.73

of

nounced

1,658

PENNSYLVANIA

155,400

or

amounts

products, Secretary

41,438

1,881

17.02

The food price average was slightly

Bears to the

revision.

Bureau

PRICE

4-8,906

1,881

6,201

.19.64

report

COMMODITY

1937

47,029

converted

ments

?,■

WHOLESALE

/

and State sources

Feb. 6, 1943, this index advanced
fractionally to 134.1 from 134.0 in
preceding week. A month ago it was 132.4 and a year ago 121.7,
based on the 1935-1939 average as 100.
The Association's

WEEKLY

-operations..

7.40

24.70

Jan, 30,

>|;+V

washery

10.71

the

say:

States

."Includes

69.38

of commodity' prices was slightly higher last
week, according to the price index compiled by the National Fer¬
tilizer Association and made public on Feb. 8.
In the week ended

following to

United

'18.08

V-.■

tJan. 31,

1,870

Jan. 23,

1,322,000
1,269,000

total

By-product coke—

38.95

Commodity
Index Advances Fractionally 111
general level

also had the

Beehive coke—

6.52

I National Fertilizer Association
%

OF

1943

; v

♦Total, incl. colliery fuel

26.39

tJan. 30,

1942

13,100 B. t.

775).

§ Jan. 30,
Penn. anthracite—

15.34

States

mum

ready requested in the
Agriculture
Department

'

United

assist farmers in
producing maxi¬

products

p.

PRODUCTION

19.24

;■■■"■'■.'V--.v": p".-• '%•

30

and

(In

19.98

DATA

——-January 1 to Date—

—Week Ended

38.08

COMPARABLE

31,220

the week

oil

of petroleum

'

.

32,913.725.225

28.46

.

V

36,228,397,999
35,234,173,432
32,844,183,750
31,449,206,904

31

27.68
27.08

barrel of

3.75

26.69

WITH

1943

6,165

produced during
per

23.79

Price
'

35,785,946,533

31—

Mar.

31-

the

u.

Georgia and North Carolina

1942—

1941-—;

Jan.

Feb.

6,129

_

barrels

ESTIMATED

39.14

same

PETROLEUM

1942

Alaska—_____

•)?*'"

Feb.
■

_

supply

25.08

the

As part of the
program of the
Department
of
Agriculture
to

nounced

of

21.21

during

,

Jan. 31,

11,200
1,867

Colorado.

31

Jan.

1,900

Yearbook, Review of 1940,

29.38

Nov.

Jan. 23,

11,400

22.21

38.811,728,666

estimated

(000 omitted)

j___

♦Total

"26.68

Market Value

1941—
Dec.

•

tons

COAL

1943

most

.

the

"Incentive Payments"
To Farmers Proposed

will

OF

CRUDE

1943

erals

Average

$

Jan. 30,

15.37

the Exchange:

Price

41,491,698,705

1940—

OF

In Net Tons

coal

49.18

1,673,360,240
709,084,853
2,901,294,359
78,565,127
577,537,831
795,022,348
103,950,483

Average

Sept. 30—

PRODUCTION

t.

We give below a
compilation of the total market value and the

average price of stocks listed

PRODUCTION

6,000,000 B.

27.05

that

equivalent of

58.01

4.17

700
.

STATES

ON

weekly output

32.76

23.70

4,765,858,188

________

315,105,337

1,315,420,939
644,430,650
'".778,244,470
.2,491,358,251
39,807,311
18,228,024
186,787,592
1,317,633,713
1,253,216,842
341,467,606
4,489,801,520 1
2,856,542,041
1,945,432,637
413,564,111
95,244,982
12,065,223
1,907,118,450
380,627,116
1,043,332,293
;';'v

24.75

Machinery & metals.—1,447,769,259
Mining (excluding iron)—^ 1,363,412,678
Paper & publishing-..-..:
384,155,555

Coal

21.58

5,527,430,016

20,272,750

.

.....

increased

ovens

♦Crude Petroleum—

f; 15.77

■■

reported

||

,

UNITED

Total,
Daily average

15.78

60.22

199,323,630

—

Leather—...

'

| ''

beehive

lignite—
incl. mine fuel_

27.18

36,30

Electrical equipment—
Farm

from

and

S

,

also

Week Ended-—-—:

333,093,885
3,256,494,569

_!

_

_

Aviation

coke

Bituminous

Price

3,408,478,894

Amusement
Automobile,

Market Value

S
16.43

.

Mines

of

■|,V'
:v||v '"•

Average

Price

$

of

1942

Average
Group

Bureau

Jan.

ESTIMATED

v!"I

;

S.

by-product coke in the United States for the week
30, 1943, showed an increase of 11,500 tons when com¬
pared with the output for the week ended Jan. 23.
The quantity
ended

dustrial groups with the aggregate market value and
average price
for each:I- v ■- ■'•:'/."•
'II:' I'1. ■ :ll I'll '"'

P

U.

production

classified by leading in¬

are

In¬

pre¬

period.

following table listed stocks

the

ceding week.
When compared with the output in the
correspond¬
ing week of 1942, there was an increase of 226,000
tons, or 20.6%.

value."

market

of

at 11,220,000 tons.
For the year to date,,output was 3.8%
lower than in the
corresponding period last year.
According to the U; S. Bureau of Mines, production of Penn¬
sylvania anthracite for the week ended Jan.' 30, 1943, was estimated
at 1,322,000
tons, an increase of 275,000 tons (26.3%) over the

net

total

Department

timated

member

their

S.

total production of soft
in the week ended Jan.
30, 1943 is estimated at 11,400,000
tons, an increase of only 200,000 tons, or 1.8%, over the
pre¬
ceding week.
Production in the week of Jan.
31, 1942, was es¬

borrowings amounted to $331,123,834.
The ratio
borrowings to the market value of' all listed
stocks on that date was, therefore, 0.80%. As the above
figure in¬
cludes all types of member borrowings, these ratios will,
ordinarily
exceed the precise relationship between borrowings on listed shares
these

Division, 'U-

coal

shares listed on the Stock Exchange, with a
total market value of $41,410,585,043.
This compares with 1,238
stock issues aggregating 1,470,502,630 shares, with a total market
value of $38,811,728,666 on Dec. 31, 1942, and with 1,237 stock is¬
sues
aggregating 1,466,994,284 shares listed on the Exchange on
Jan. 31, 1942, with a total market value of $36,228,397,999.
In making public the figures for Jan. 30, the
Exchange said:
"As of the close of business Jan. 30, New York Stock
Exchange
of

Coal

net

1,470,369,538

member

Bituminous

terior, in its latest report, states that the

The New York Stock Exchange announced on Feb. 5 that as of
of business Jan. 30, there were 1,240 stock issues
aggre¬

the close

gating

589

In

a

joint statement issued Jan.

28, Edward J. O'Neil, President of
the American Farm Bureau Fed¬

eration; Albert S. Goss, Master of
Grange, and Ezra T.
Benson, Executive Secretary of

the National

the

National

Council

of

Farmer

Cooperatives,
said
that
"these
payments as now projected, are
nothing but subsidies, disguised."
"We
are
unalterably opposed,"
they said, "to the use of subsidies
in

lieu

of

a

fair

room

market

place."

return

in

the

And Diversified
Financing For Month Of December

The number of

new

Novem¬

according to an announcement released Jan. 30, by
Capt, Director of the Census. The dollar volume of paper ac¬
quired in new passenger car financing was off 27%. The number
of used passenger cars financed decreased 25%, and the dollar vol¬
ume of paper acquired, 23%.
Compared with the preceding month,
the number of new commercial cars financed was 47% less in De¬
C.

acquired, 54%. The number
commercial cars financed decreased 24%, while the dollar
of paper acquired was off only 20%.

cember and the dollar volume of paper
of

used

volume

As of Dec.

31, 1942, the volume of retail automotive outstandings
held by sales finance companies was 16% less than as of Nov. 30,
bringing the index down to 37, compared with 149 at the end of De¬
cember

a

ago.

year

series

a

current

of

published weekly by the . Com¬
other sales in these

being

figures

Short sales

mission.

shown separately from

are

figures.

7

;

•

automotive

paper

December, 1942, in retail diversified financing, month ago
comparisons show increases in the financing of residential building
repair and modernization (123%), industrial, commercial, and farm
equipment (98%), radios and other musical instruments (36%), and

The Commission made
ended Jan.

23:

'

•

,

w.

and

reports are

N. Y. Stock

Exchange
Total number of reports received

:'174

Reports showing transactions as specialists-.

2.

Reports showing

other transactions Initiated

3.

(30%); but decreases were recorded for other household
appliances (97c), and refrigerators (29%). In wholesale diversified
financing, the volume of paper acquired was down 55% from No¬

Reports showing

vember to December of this year.

•'

v

31, 1942, compared with Nov. 30, 1942, the volume of
diversified outstanding balances held by sales finance companies
decreased 8% for the retail financing of other consumers' goods; 5%
industrial, commercial, and farm equipment; and 23% for whole¬
sale diversified financing (other than automotive).

for

The ratios of the paper acquired during December, 1942, to the
outstanding balances as of Dec. 31, 1942, were 3% for retail automo¬
tive, 3% for wholesale automotive, 7% for wholesale—other than

the floor

on

Y697;

4.

received because

Sales

Total Round-Lot Stock

"

239 sales finance com¬

>/

the total amount of financing

The

data

Total sales——,—_______

,.

for

seasonal

for

cables

of

below

The figures

price fluctuations.

or

this release

not

are

Transactions

presented in

comparable to those published

obtained by

were

November to December, as
the

from

Total

All indexes for

shown by data

on

of

■'

acquired during

;■

/.v....

Total

V:"

;

v

Total

retail

Total

wholesale

automotive——.

Dec. 31,

acquired to

$10,112,807

$9,777,091
5,435,326

146.930

and

117,638

sales————

109,815

—

purchases
sales

Round-Lot

the

on

New

Curb

York

Transactions for Account of Members*

,

ENDED

WEEK

JANUARY

sales

tData

financings.—____ $23,637,593

based

are

fRatios

$23,034,446

V

obtained

$634,189,724

.

by outstanding balances
.V-vf 7.''■•. ^\;7
• ^Y.-. •

tOther sales

Volume of Paper

.

8.

Round-Lot

1.

they

% of

Total

retail

New

automotive..

passenger

Used

commercial

_1

wholesale

808

—..

Dollar

% of

Volume

total

+$9,912,859

5

79

.

21,568
—_

100

1,207

—„

cars
cars—

total

7 23,662

•—

passenger cars..
commercial cars

New

Used

Total

Number

■

1,039.508

Account

the

for

.

'vol

reporting identical mills ex¬
ceeded production by 17.4%; or¬
ders by 24.4%.

+Per
cent

Used

cars

84

3

423,766

♦Data

their

of

those

and

on

+$4,976,762

^ort

——

:

Total sales

67

holders of City of Porto
(United States of Brazil)
40-year 7%
sinking fund gold

45,455

—

funds

1,652,263

Total

purchases

Short

33

tOther

FINANCING *

Class of Paper

Total sales.

musical

instruments

building repair and modernization—

Miscellaneous

C.

Odd-Lot Transactions for

retail

$442,548

8

91,357

2

{Customers'

86,036

2

3,032.738

+ $4,440,204
wholesale—other

Industrial,
Total

than

automotive

commercial, and farm equipment.
diversified
are

based

financingon

10

$5,119,379

available.

100




l._-

of

-

-

24,468

-

for

"members" Includes all regular and associate Exchange members,

transactions

Includes

both

tRound-lot
are

purchases

short

included with

sales

which

are

provisions of

Decree

of

the

and sales,

while

the Exchange volume

exempted

from

restriction

Included with

bonds

interest

represented

thereby.

present provision, the no¬
In tice states, has been made for the

"other sales."
are

the

accepted

their

includet

-

fiSales marked "short exemot"

L

to

"No

including special partners.

only sales.

also

and coupons, must
in full payment of
coupons and of the claims

the

be

30,917

their partners,

of

if accepted by the holders

ment,

30,917

:

fShares in members' transactions as per cent of twice total round-lot volume.
calculating these percentages, the total members' transactions is compared with twice
the total round-lot volume on the Exchange for the reason that the total of members'

werf
,

—

sales

term

firms and

reports from

reported in first table due to the exclusion of some data for which breakdowns
not

0

such

3

532,245

sales

the

United States of Brazil, such pay¬

.-

purchases

Total

87

146,930

other

Total

sales finance companies providing a breakdown
of their retail financing of other consumers' goods.
+This amount is less than that
♦Data

1

59
14

.

2

83,566

'..

of

announcement

Presidential

the

Account, of Special¬
■

•The

Total

the

Customers' short sales—-—

703,959

other

—.

with
pay¬

America,

currency

of

.

"Pursuant

19.07

170,495

-

ists—
—

Refrigerators (gas and electric)
Other household appliances
Residential

total

goods:
.

states:

163,330

—

a

due Aug. 1,1940, amount¬

The

coupon.

7,165

—

1942

Dollar Volume

consumers'

147,765

——-

sales

+Other sales

deposited

ing to $4.89 Vs for each $35 coupon
and
$2,44 9/16 for each $17.50|

4.26

45,130
1

1

Total purchases

Furniture

&

!——-

lawful

13.975% of the face amount of the

44,730

—

Total—

% of

pianos

sales

Total sales
4.

Short

Radios,

400

been

States

United

26,035

——

in

coupons

reports from sales finance companies providing a breakdown
automotive financing,
tThese amounts are less than

available.

Retail—other

*,

sales

sufficient to make

ment

3. Other transactions initiated off the floor—

have

them,

4.69

32,750

——

external loan of 1928, that

bonds

400

32,350

——

Thalmann & Co.,
special agent, is no¬

tifying
Alegre

10.12

92,615

u.--—

sales

Ladenburg,
New York, as

86,250

the floor—

on

sales-.

tOther

100

3,324,499

Volume of Paper Acquired during December,

-

Pay On Porto Alegre 7s

—

—

Total purchases

wholesale

DIVERSIFIED

cor¬

0.6% greater.

were

76,275

—-

———.

-

Other transactions initiated

'■■"■V'

reported in above table due to the exclusion of some data for which breakdowns
not

were

based

are

retail

average

and orders

6,365

i

—

Total sales—
2.

4

(passenger and commercial)——

the

Compared to

responding week of 1935-39, pro-1
duction of reporting mills was
16% less; shipments were 8% less,;.

registered-—' :y.:

tOther sales

;

l

8,351,179

(passenger and commercial).

cars

date,' shipments

of

1

"

New

and gross stocks

of

—

11

98,406

91

automotive

mills

greater than produc¬
Unfilled order files in the

834,550

-L—1—

—

Transactions

are

100

1
;

same

these

827,160

-

Total purchases—
Short sales

Paper acquired

cars

of

56%

For the year to

Stock

Transactions of specialists in stocks in which

'■

■

:

for week

•

In the

1943.

Members:

Acquired during December, 1942

Number of
Class of Paper—

*

7,390

Totai sales--—

/;'.;;7v../ '

AUTOMOTIVE FINANCING •

,

.

Number of Cars Financed and

(Shares)

.

by dividing paper acquired (column 2)
.V...1 '•
'
'/■/
■
7'./

(column 3).

J

-

,

Short sales,—

figures from sales finance companies able to report both their

on

and their outstanding balances..

acquired

paper

15.69

Exehango »nd

1943
Total

23,

■

532,245

pro¬

week

equivalent to 43 days' produc¬
tion.
'■ V,:," V
;

695,355
Sales

the

are

610,805

;

Stock

..u"

...

Association,

for

orders

the current rate,

84,550

,

A. Total Rcmnd-Lot Sales:;

Total

3.03

123,655
632,720

5,687,670

•

.to

reporting mills amounted to 81%
of stocks.
For reporting softwood
mills, unfilled orders are equiv¬
alent to 38 days' production at

13,840

141,338,415

520,871

;

1,763,999

7,183,520

7,349,018

farm

sales

exceeded

28.9%

by

new

tion.

132,630

—.

—

Total sales

Total

goods

consum.

and

the National Lumber

to

Barometer

week

4.30

180,195,023

commercial

exempt" are re¬
tSales to offset

orders,

long position which Is less than
are reported with "other sales."

ended Jan. 30,

179,330

tOther sales—-.—

3

$305,204,617

5,496,593

retail—other

equipment

porting
duction

15,800

sales——

i-'i- Short

balances*

;

motive

Industrial,

8.36

■:

Total

outstancl'g

automotive——f.

a

Trade

——,———

Total—

4.

of paper

1942t

"short

odd-lot

169,130

-

Total sales

Ratio

Outstanding
balances •/

Shares—176,200

Manufacturers

ber

376,570

——

purchases

tOther

Total wholesale—other than auto¬
Total

sales

Short

■/

By,-V:

'

of

marked

round lot

were

'

Total

321,660

tOther sales—-.

'.."Vf

companies
■reporting
By all
outstanding
Class of Paper-—
companies
balances!

112,690

by

According to the National Lum¬

Other transactions Initiated off the floor—

3.

and Balances Outstanding

;

a

54,910

—

purchases-

Short

December, 1942

.

'/•: ■'.

"•■ •

112,470

— „

ported with "other sales,"

195,130

Volume of paper

220

_

————

Ended Jan. 30, 1943

:•——.—

———

14,119,668

Dealers—

customers'

330,960

DIVERSIFIED FINANCING

Paper Acquired During December, 1942,
December 31, 1942

sales

Short

tOther sales

..

•Sales

Other transactions initiated on the floor—

2.

per¬

centages to the indexes previously derived for November, 1942.

Volume

..

Shares:

Lumber Movement—Week

—-—

sales—

Total sales-

,.

AUTOMOTIVE AND

of

Number

lumber'shipments of 424 mills re¬

reports for both months

and by linking these

Dollar Value

,

Number

iiV 99,700

—

sales-.

477,463

sales

of

Account

—Wl

purchases-

tOther

calculating the percent changes from

finance companies,

sales

same

companies.

total

Round-lot Sales by Dealers-

they are registered--'...:...".'.
Short

each month from identical sales finance

7.081

470,382

Customers'

V'.

for the Odd-Lot Accounts of
Odd-Lot Dealers and Specialists:
•
\
' "
1. Transactions of specialists in Stocks in which

previous months since monthly reports have not been received

December

short sales—.

.

tPer

4,232,170

;——

the

for

17,382

sales

total

Shares:

?' "Customers' other sales—

Cent

Except

Members,

ment

of

Customers'

liquidate

Round-Lot

17,175

*

Total sales

4.132,470

—

——,

—

207

sales——

short

,

for week.

.

,

:

.

other sales

Customers'
'

and Round-Lot

(Shares)

Total
;

,

";7

pother sales

reported without adjust¬

as

-

17,008,192

,V,:

-

Customers'

1943

23,

'
■.

•

..

.

Short sales

by all sales finance companies in the

published

are

JANUARY

7/,

Total Round-Lot Sales:

panies, and the dollar volumes should not be assumed to represent

"United States.

Dealers—

Number

Account of Members*

ENDED

WEEK
"

it.

18,294
514,878

—

—

Round-lot Purchases

the current trends of sales financing during De¬

1942, were based on reports from

Shares—*—

526

tlie New York Stock Exchange

on

Stock Transactions for

Total

for Week
/

Odd-lot Purchases by

total more than the num¬
single report may carry entries In more than one
*/■•'■
'"77;'7-'fr--' V'' r :''

a

:...'7

7

of

Value

Dollar

the various classifications may

The number of reports in

reports

Number

-

1943

Orders—

(Customers' Sales)

transactions are handled solely by
ipecialists in the stocks in which they are registered and the round4ot transactions
of specialists resulting from such odd-lot transactions are not segregated from the
specialists' other round-lot trades.
On the New York Stock Exchange, on the other
hand, all but a fraction of the odd-lot transactions are effected by dealers engaged
solely in the odd-lot business.
As a result, the round-lot transactions,of specialists In
stocks in which they are registered are not directly comparable on the two exchanges.
of

of

/..•■•^Customers'

Reports showing no transactions—2——-

classification.

Number
•

30,

Jan.

by Dealers:
Purchases)

Sales

(Customers'

" •

ON

STOCK

84

496

:

Number of Orders:

Note—On the New York Curb Exchange, odd-lot

ber

Ended

Week

Odd-lot
.

-,30

,..201

——————

——.

—

automotive, 5% for retail—other consumers' goods, and 9% for indus¬
trial, commercial, and farm equipment.

cember,

;■•••

NEW
YORK
EXCHANGE

THE

-

91

/

'

AND SPECIALISTS

DEALERS
.

658

other transactions Initiated off

,

As of Dec.

f

odd-lot

TRANSACTIONS :FOR
TH1
ODD-LOT
ACCOUNT
OF
ODD-LOT

Exchange

;

f

945

-

———

'

1.

N. Y. Curb

•

.-/

the

STOCK

Stock
These

published are based upon weekl^'reports filed with the New York
the New York Curb Exchange by their respective members. ;
classified as follows:
■

data

The

Exchange

The figures

by

dealers and specialists.

•

.

Commission

the

of the total volume of that
Exchange of 834,550 shares; during the Jan. 16 week trading for the

275,580. shares was 17.59% of total trad¬
s;
V':;;.",.>:f.
available the following data for the week
f. wyi ,;) v.\ ' \y;

Ex¬

series .of
published

based upon reports filed with

are

shares, or 19.07%

furniture

on

current

by the Commission,

with member trading during the week ended Jan. 16 of 1,371,455 shares, or 15.14% of total trading of 4,527,440 shares. On the New
York Curb Exchange, member trading during the week ended Jan., 23

:

ac¬

and
lots

Stock

continuing, a
figures being

change,

pares

ing of 783,460 shares.

odd-lot

the

York

New

the

on

on

amounted to 318,260

for

of all odd-lot dealers
specialists who handle odd
count

the Stock Exchange for the account of members
(except odd-lot dealers) during:the week ended Jan 23 (in roundlot transactions) totaled 1,328,075 shares, which amount was 15.69%
of total transactions on the Exchange of 4,232,170 shares^ This com¬
Trading

For

These data

transactions

account of Curb members of

acquired for new passenger and
new commercial cars by sales finance companies during December,
1942, declined 28% in volume from November of this year, while
the volume for used passenger and used commercial cars was off
only 7%. The volume of outstanding balances for this type of paper
decreased 5% from Nov. 30, 1942, to Dec. 31, 1942.
Wholesale

Commission made public Feb. 5

Exchange

and

Securities

figures showing

ber of this year,

J.

-The
Securities
and
Exchange
Commission made public on Feb.
the volume of total round-lot stock sales on the
New York Stock Exchange and the New York Curb Exchange and 5 a summary for the week ended
the volume of round-lot stock transactions for the account of all Jan. 30 of complete figures show¬
the daily volume of stock
members of these exchanges in the week ended Jan. 23. continuing ing

The

financed in December, 1942,

passenger cars

NYSE Odd-Lot Trading

Trading On Mew York Exchanges

Automobile Financing

by sales finance companies fell off 29% from the number in

Thursday, February 11, 1943

& FINANCIAL CHRONICLE

THE COMMERCIAL

590

"other sales."

by

the Commission

coupons

due Feb. 1, 1932 to Feb.

1, 1934 inclusive, but they should
be

retained

ment."

for

future

adjust¬

Volume

Number

157 '

Revenue

4150

THE COMMERCIAL

•

734,582

Feb,

on

4.

This

1942, of 80,983
in

freight for the week ended Jan. 30, 1943
the Association of American Railroads announced

revenue

cars,

was

1941, of 20,228

decrease

a

the corresponding week of
increase above the same week

below

9.9%, but

or

cars

an

2.8%.

cars or

I

,

"

Miscellaneous freight loading totaled 350,543 cars, an increase
of 14,529 cars above the preceding week, but a decrease of 21,805
cars below the
corresponding week in 1942.
;

:

Loading of merchandise less than carload lot freight totaled
88,585 cars, an increase of 4,098 cars above the preceding week, but
decrease of 63,201

a.

/

Cars below the corresponding week in

Railroads

•

Southern

1942.

&

the

corresponding

week

1942.

.'

■

v

.

Si

above the corresponding week in

cars

and

the

corresponding week in 1942.
Ore

loading amounted

above the

preceding week and

Coke
the

cars,

:

•

.1.

-

1,198

cars

v.

:

:"

^

V'

^

1942

1943

"■

"

Jan.

621,048

676,534

614,171

of

Jan.

716,272"

736,972

711,635

Week

of

Jan.

755,369

811,327

Week

of

Jan.

23™,™™™™-

703,578

/ 818,081

710,752

Week

of

Jan,

30:

734,582

815,565

714,354

•

703,497.

.

the separate

railroads and systems for the week ended Jan. 30, 1943.

FREIGHT

REVENUE

LOADED

(NUMBER

year.

AND

;;;;■

RECEIVED

OF CARS)—WEEK

FROM

777

168

151

427

638

3,809

2,887

3,726

3,011

4,829

*1,31.6

1,167

1,538

339

514

400

1.097

476

366

9,748

1.309

10,181

11,121

10,625

9,143

7,495

21,154

25,255

23,419

24,469

21,352

332

616

496

936

833

128

141

1,050

884

128,046

112.014

120,319

I.v.,

.

District—

Eastern

12,821

14,742

2,376

3,031

3,684

19,055

—

15,320

2,925

268

668

"570

1,884

2,114

8,924

7.860

14,542

13,563

1,466

2,102

2,448

16

\'.V, 57

72

1943

1942

Aroostook™.

Si

—

Maine™™*——

5,790

Chicago. Indianapolis Si Louisville—

1,400

Si

Indiana—1

Central

™

7,603

Detroit & Mackinac

1,184
.

267

.

Detroit, Toledo & Ironton
Detroit & Toledo Shore Line™—

-

23,258

it,

19,849

9,756

9,922

4,583

Grand Trunk Western™—*—-™™-

Valley,

2,205

tions

11,148

11.223

11,061

9,919

233

113

.154

'

237

3.108

2,019

1,824

301

377

2,858

"4,454

13,612

17.511

15.920

2,818

—.

———.

Monongahela™—.

.

Montour™—*.™——-™--——

.

5,494

9,153

8.961

149

/,> 207

144

2,650

3,163

1,634

1,601

1,553

1,671

8,095

9 496

9.232

11,338

9,900

2.588

3,511

3.496

4,031

3,523

6,201

4,836

416

3,318

4,582

908

250

407

name

707

488

5 6<

8,932

10,260

9,826

10,706

10,445

372

467

417

man,
and I

86

14.

9,795

12,170

4 48;

;

Louis

522

832

341

252

43

2,636

2:093

1,883

26

32

5,955

-

J

™-

44.945

48.637

44.805

54.520

51,323

N. H. & Hartford.—-—-.—-

8,375

12,708

10,901

16,899

16.972

New

York, Ontario & Western.-,™-*.

891

1,023

1.082

2,872

2,425

New

York, Chicago & St. Louis

7,220

6,501

5,381

15,566

14.812

New

N.

N.

York Central Lines—

Y„

—

Susquehanna <fe Western—.—

Y.,

Pittsburgh & Lake Erie
Per#

—

1,765

2,675

1,542

2,034

5,984

4,911

2,963

3,70

10,665

9,236

4,103

4,735

42

99

102

353

305

2,434

1,550

2,778

2,58(

™

__II_

& Seattle.

1,335

Total

••

77,517

2,50

can

Atch., Top. Si Santa

Fe

System

96,867

81,019

57,917

63,78(

term

3,53:

Michigan in

700

565

460

116

114

17,966

18,427

15,107

10,867

10,971

2,759

3,066

2,587

902

11,166

12,724

10,560

12,389

12.071

2,901

2,991

5,481

3,291

,764

780

812

1,915

1,575

3,684

3,260

2,878

4,799

4,36,

802

749

669

6

8

1,039

Chicago, Burlington & Quincy

Chicago & Illinois Midland—™,
Chicago, Rock Island & Pacific™—

1,194

863

1,102

1,062

length

1,564

know

2,285

Denver & Rio Grande Western
Denver & Salt Lake™
Fort Worth & Denver

—

City™—

Illinois Terminal™

_-™r™™_„_;

.

1,442

1,906

534

883

37

21

Southern

Toledo,
Union

Pacific

21,937

(Pacific)

27,114

106

584

22,955

12,262

304

318

1,533

13,664

12,529

12,24'.

635

726

412

5

1,561

1,926

1,548

3,717

3,251

106.849

121,701

101,742

84.993

76,151

189

130

212

231

6,588

5,335

2,900

2,153

2,785,

3,308

2,194

1,594

3,415

-

r

.

'

'

Kansas

City Southern.

——

Missouri

&

Creek

Cambria
Central

R.

:__™—
—™—

St.

&

Pennsylvania
—

393

Union

Western

Texas

& New

Texas

&

Wichita

Total

;

Pocahontas

;

12,513

A

6,214

4:283

172.850

162.024

224,727

14,834

17,480

13.671

139

83

154

256

9,442

7,696

7,648

7,028

2,985

3,191

2,735

6,220

4,639

11,241

8,226

6,874

5,020

5,370

6,730

4,020

7,481

9,116

82

118

120

29

39

24

37

14

29

45

69,381

65,363

50,873

63,148

Falls

Si

Southern
-

"
week's

figures.

728

-

529

39,499

33.840

3,046

3.141

2,800

385

361

1,174

303

27,595
.

23,302

1,873

1,458

4

Weekly Statistics Of Paperboard industry

1,897

1.926

7

14

8.027

6.827

19,907

17,315

699 ;

"591

314

314

125

143

171

71

65

7

22

52

7™

138.492

Nov.

14—

Nov.

21

Nov.

301,088

83

310,439

83

85

28

136,655

124,461

321,885

77

150,132

130,761

340,203

82

85

3,371

Dec.

12™

2,011

Dec.

19™

Dec.

26™—

57,746

57,142

28,3.52

3.692

4,102

3.525

13,364

9,600

157,978

160,511

143.995

350,011

84

85

2_:

113,600

352,854

72

84

97,386

379,573

62

84

—

Virginian™.
Total.




24,581

22.481

10,425

Jan.

9

129.365

381,713

82

82

134,982

21.209

21,674

6,645

6,323

4,125

4,549

1,874

48.704

18.944

18,764

.

157,251

137,055

397,437

88

.

As

term

some

situation

140,849

398,594

88

86

Jan.

30

152,358

136,645

413,084

88

orrw*

m«i'"

unfilled

<or

orders.

or

the prior week plus orders
received, less production.
unfilled orders at the close.
Compensation for
filled

86

do not

delinquent reports,

from

stock,

and other

items

made

of

certainly
stands

at

and to' have

war

I

was

the tide

is

Bureau¬

a

moving that

is likely to be one of the
despised of men's endeavors

most

history.

*

This trend of

rampant

despise is

that

about

running

legitimate

officials

are

Gov¬

becoming

it.

They notice
they refer to
public servants.

when

now

which

as

recognizes the legitimacy
Government functions

certain

and

"public

example,

servants."

Such, as
developing in

is

Brown's
a

OPA.

It

haven for lame

is

be¬

ducks.

Congressman
McKeogn
Illinois, who made the doughty
fight against Wayland
Illinois, has been taken
there, and perhaps before

of

«

85

143,028

necessarily equal the
49.915

crat.

this

16

1,924

51,003

recoup

that

answer

care

23

10,517

21,234
4,424

to

necessary

adjustments 0/

it

appears,

New

that
126,844

—

na¬

but losing
Brooks in

194i—Week Ended—
Jan.

our

propaganda,

should

what I did in the

85

Jan.

25,345

the

as

coming

85

350,012

118,063

—

137,856

134,383

Jan.
:—.

and

Former

151,085

24,887

5,041

downs of

time, for a grand¬
daughter to ask me in later years

of

136,363

—

explain

this particular

85

5

Dec

2,236

19,703

to

83

133,188

3.082

15,886

hate,

Prentiss

137,355

661

69,667

and

ups

agitation

gentry may
fortunes. I

83

146,335

1,235

16,643

84

have

their

of
Current Cumulativi

147,815
*

-

923

81,744

Percent of Activity

Remaining

291,780

the

don't have to do that
don't

for

157.919

52

20,849

MILL ACTIVITY

Tons

and

"Bureau¬

as

Presumably, there will be a
swinging back to a middle ground

1942—Week Ended—
Nov

1,754

180.823

Tons

Tons

1,316

71,832

the

themselves

Unfilled

6

6,285

the

tional

grins

Received

the

people.

.

worried

1,058

to

Bureaucracy at all,
The people
seething about it, and while

so

Orders

known

you

You

ernment

Production

American

"Bureaucrats"

was

Well,

in all

REPORTS—ORDERS, PRODUCTION,

had

of representative

cracy."

~5M43

Pacific—

312,770

District—

Western.,™.

17,301

8,709

Orleans

Total

12 050

4,101

4,840

160.609

—

Chesapeake & Ohlo„™—
Norfolk

47t

4,700

109

Weatherford M. W. & N. W

1.147

3,437

:

Maryland

414

5,920

2,185

1,045

13,556

*

(Pittsburgh)

137

™.

—

the

as

system

in

330

3,583

5,603

.6,094

4,853

191

774
-■529

20,288

——™

Reading Co

291

4,164

St. Louis Southwestern

1,009

—

Penn-Reading Seashore Lines——
Pennsylvania System™

212

Note—Previous year's figures revised.

204

Ligonier
Long

740

15,701

Louis-San Francisco

by

system

These bureaus sought to govern
by decree, he explained, and the
men manning these bureaus were

1.16C

518
196

66

1,714

of New Jersey„™_™™

Valley
Islands

2,461

1,167

5,143

6,809

465

Cumberland

2,126

329

117

14

36,234

Gauley

2.004

'

that

are

6,016

Lines

-

7,478

713

Indiana

A
R.

&

2,481

4,152

Pacific

Period

Youngstown

Bessemer & Lake Erie—

2,411

2,332 V

which

placp

of

1,04(

533

Orders

Baltimore & Ohio

Buffalo

1,057

403

Quanah Acme Si Pacific™—

District—

Akron, Canton

167

2,622

Missouri & Arkansas—

Missouri-Kansas-Texas

lives

now.

270

;

509

151,804

-

—

Allegheny

3^201

—-

Valley

the father sought
explain

legislative Government in

or
'

V

3,208

Litchfield & Madison
Midland

373

5,327

—__™-

Louisiana & Arkansas

STATISTICAL

Total

278

6,123

5,689

Wabash™,,™,

Wheeling Si Lake Erie

Lines—™™™!--™™L

International-Great Northern

Kansas, Oklahoma & Gulf—

you

come

the

known
•

683

not

when

mean

to

bureaus

take

'

;■

Island——™

at

do

a

2,631

—

Pacific™™——™—™—

Gulf Coast

you

subject

simply

of

651

16,050

District—

what

I

and

"Bureaucracy" he meant

9,533

400

13,989

Western™:

we

by

mean

friends

the

and

laboriously

(

-

you

My

discussed

From then on,

435

0

•

J—

Si

to him and said:

refer to 'Bureaucrats.'"

141

529

32

in

"Washington Bureau¬
day, his grown up

came

'

System™—-™-™

Peoria
Pacific

have

441

-

the

out

was

One

daughter

1,651

496

V

I
011

senatorial campaign

Bureaucrats?

775

1,870

a

I

"Father, what do

1,682

:

which

progress

made.

the

on

crats."

1,960

Pacific*™—-™—^

has

war

1.060

584

.

of

sort

year and my candidate was
waging relentless and a successful

84".

:

900

Northern

6,148

553

right

last

1,653

Missouri-Illinois—

Western

amazing

9,871

*4,010

*Previous

923

the

only reporting when
this, and I also report

10,787

1,518

443

the

sincere

Borah uttered it,
fairly definite con¬

with

2,933

7,521

.

did

once

am

17,992

1.581

933

calls
emo¬

as

a

3,420

8.019

303

have

22,665

435

335

——

as

Raskob,

Chi¬

mean

able and

very

19,349
.

—

7,923

Rutland,:

same

a

*3,095

Alton

575

:

the

as

successfully

people

of

go

I

the

8,287

715

remem¬

boys."

449

Pittsburg & Shawmut—
Pittsburg, Shawmut & North.*.
Pittsburgh & West Virginia—

will

socially ambitious
daughters
of
Bureaucrats
are
coming to plead:
"Daddy, please, oh please, get
into something respectable so we

5:

4.484

7,900

4,748

Marquette,—,—™——

.

The

almost

viction that the

79

8,034

™_

International

Spokane, Portland

4,350

616

2.65

Ishpeming™™_™™:_

9,434

479

Western™™..;

440

5,289

in

4,037

2,230

6,743

9,373

1,776

.

:

Lehigh & New England
Central..——™

213

5,927

3,545

,

Lehigh & Hudson River
Lehigh

:

grow-

on

you

the

arouses

790

.

'

303
12.185

Maine

1,297

153

14,548

1,891.

.

.

v

9,057

6,505

.

Lackawanna <fc

1,470
35

.

912

Western—

Central Vermont
Delaware.

31

—:™--™<—.

Delaware & Hudson

.

1,618

1,296
■

their

"Burocrat"

or

1,129

'

Arbor„__™.;———

Ann

Bangor
Boston

if

corner,

cago

659

Southwestern

1941

to

bank

a

"Tribune"

18,471

3.837
1,266

Burlington-Rock

1942

2,548

,f

was

every

2,546

Total Loads

Connections

recall, too,

by becoming bankers.

result

14,651

IILIIII

„___™

Received from

1943

table"

crat"

Total™

Total Revenue

i
_

.

I

ber.

CONNECTIONS

Freight Loaded

Railroads

:■

against
uttered

he

way

101,776

95

Minn._& Omaha.™

Northern

Western

ENDED JAN. 30

the

cam¬

never

ing and socially inclined daugh¬
ters and how, at the behest of the
daughters, the successful saloon¬
keepers, having piled up a goodly
sum, sought to become "respec-'

9,009

-

the

would

the flesh of his auditors

embarassment

an

1,492

302

.

but

late

name

back in the days agone how suc¬
cessful saloonkeepers came to be

8,955

904

in

He

bound to crawl,

was

15,248

10,893

171

™™.™™™„_

Utah„™™_

corresponding week last

19,072

153

the

to the

Raskob

1928.

name

®ouf^ s^01"e & Atlantic-~-—
s-ious::::::
Great

^iorth

During this period only 32 roads showed increases when compared
with the

22,323
23,616

218

of

which

gave

Well, today, the term "Bureau¬

3.454,409

3,858.479

of the freight carloadings for

summary

24,447.

™w™™.

Peoria & Pekin Union™—

table is a

29,714

169

,

_

Nevada

The following

5,401

3.797

.

of

3,530,849

3,559

Colorado & Southern™;

1941

Week

Total™.

4,623

Chicago & Eastern Illinois-

Week

—

772

Bingham & Garfield

increases above the corresponding week in 1941 except

the Eastern and Northwestern.

107

2,537

519

Central Western District—

compared with the corresponding
1942, except the Pocahontas and Southwestern, but all dis¬

tricts reported

92

3,049

341

J.

Raskob
the

Northwestern District—

•

All districts reported decreases
week in

31

1,181

467

26.882

Chicago Si North Western.
Western™
Chicago Great western™
Chicago, Milw., St. P. & Pac

Spokane

loading amounted to 15,193 cars, an increase of 57 cars
preceding week, and an increase of 624 cars above the

corresponding week in 1942.

42

1,571

Borah

anything specifically

say

999

1,192

23,299

.

paign

308

312

1,689

sinister twist

John

write

•:

,

260

184

36

Minn., St. Paul Si S. S. M.™

■

1,732

356

™™

and

2,923

955

Potomac—.

Northern Pacific™,

981 cars
above the

1,607
2,737

294

194

117,419

Lake Superior &

increase of

an

increase of

an

corresponding week in 1942.
above

>

•

14,540

to

decrease of 1,052
16,147 cars below
v ' '
' -v' •

449

1,599

335

1,125

Minneapolis Si St.

Forest products loading totaled 32,617 cars, a
below the preceding week and a\ decrease of

cars

400

1,695
:

3,452

Northern™™™™

Green Bay Si

increase of

an

1942.

2,116

1,344

.III

Total.

'

1,190

of

I_1Z~_II.IZIIIIZ

Southern

above the

increase of 1,767 cars above the preceding week

4,087

Ohio™„™

Chicago, St, Paul,

loading amounted to 13,322 cars, an increase of 1,856
preceding week, and an increase of. 1,805 cars above
w.ci.wi
the corresponding week in ,o«
1942. In the Western Districts alone,
loading of live stock for the week of Jan. 30 totaled 9,669 cars, an

4,494

2,930

1,291

Live stock

cars

5,263

Winston-Salem Southbound

week, and an increase of 2,323 cars
1942. In the Western Districts

.;-v

Senator

4,605

331

91

Mississippi Central™™™™™™™™™
Nashville, Chattanooga & St. L._™

in

i

v

7,993

393

2,966

Macon, Dublin & Savannah-.™—;

alone, grain

in

1,081

11,318

—™.

Illinois. Central System
Louisville & Nashville

Piedmont

and grain products loading for the week of Jan. 30
33,628 ears, an increase-of 4,011 cars above the preceding
week and an increase of 1,481 cars above the > corresponding week

1,412

11,484

Georgia____..
Georgia & Florida

Norfolk

totaled

676

12,916

320

,

Grain and grain products loading totaled 49,952 cars, an increase

786

784

416

*

-

958

1,669

Southern

Mobile

*

661

„~™"
I

Washington

(Continued from first page)
8,000 miles. I recall the shrieking

1942

14,472
3,754

Gainesville Midland™:

Gulf,

1943

344

II

.1

Coast™™

1941

413

™™_

East

1942

361

Central of Georgian
;
Charleston & Western Carolina
Clinchfield

Florida

Connections

637

Atl, Si W. P.—W. R. R, of Ala

Columbus & Greenville

From

Received from

1943

& Northern™

loading amounted to 169,830 cars; an increase of 5,803 cars Richmond, Fred. &
above the preceding week, and an increase of 14,220 cars above the. Seaboard Air Line.
corresponding week in 1942.
Tennessee Central

above

Total Revenue

Atlanta, Birmingham & Coast

Coal

of 4,732 cars above the preceding

*

District—

Alabama, Tennessee

Durham

Loading of revenue freight for the week of Jan. 30 increased
31,004 cars or 4.4% above the preceding week.

•

591

Freight Loaded

Ended Jan. 30,1343 Amounted To 734,582 Gars
totaled

FINANCIAL CHRONICLE

Total Loads

Freight Gar Loadings During Week

Loading of

&

will

Deal

be

learned

Senator

Clyde

Herring of Iowa, who went down
in

the

given

November
a

public

They
unlike

don't

the

has

been

Those sort of

are

cost

do .any

"public

tide,

there.

servants

able.
but

job

a

understand¬

little

money,

intellectuals, they
harm.
They are

servants."

:

THE COMMERCIAL & FINANCIAL CHRONICLE

592

Items About Banks Tiust Companies
The
of

Guaranty

New

its

York

Head

R.

after

an

with

the

than

occasion of his

company.

hundred

50

of

years

In the more
years
of the

Company's his¬
Slipper is the third

Guaranty

Trust

tory, ,Mr.
member

of

tion

achieve

to

bank's

the

organiza¬

that

length

in retiring

and

service,

service

active

association

a

Joseph

Teller,

on the
from

Slipper,

honored

5

Feb.

Paying

retirement

Company'

Trust

on

on

of

pen¬

sion he carried with him not only
the
and

good wishes of his associates
many friends of long stand¬

ing among the bank's customers,
but also a tangible expression of
good wishes, in the form of a
check for

$1,000, presented on b&r
by W. Palen

half of the company

Conway, Chairman of the Board.
The date of Mr. Slipper's re¬
tirement

coincided

that

with

of

his

completion of a half century
of service.
He joined the staff in
1893 at the age of 15 as a mes¬
senger, but soon became one of
the four members of the book¬

keeping staff.
The books were
hand-posted, and the bank then
had one telephone in its basement
quarters at 59 Cedar Street.
Mr.
Slipper became teller after a few
years' service, and throughout the
iyears of the company's subse¬
quent growth has been chiefly
identified with that branch of the

Banking Department's work.
He
has been head of the Paying Tel¬

his

The

bank gave a dinner

honored by the Guaranty Quarter

Century
the

the

and

merce

Bank

of

Com¬

(merged with

Reserve

eral
dition

the

of

members

The

System.

of these two

1942, according to

.Fed¬ 000,000 during

ad¬

banks brings

the
ment

bank's
made

111th

annual

public Feb.

3.

state¬

De¬

adequate
banking
facilities
throughout the Dominion, because
it
is
recognized
that
banking
service in all sections is necessary
for
the
conduct of the general
business and

country.'

activities of the

war

'■/

.

posits at $345,601,552 were up al¬
The Midland Bank Ltd. of Lon¬
most
$42,000,000,
while invest¬
that H. A. AstFarmers State Bank, organized in ment account gained $28,000,000. don announces
Net earnings for the year were bury, Chief General Manager, re¬
In recent years he has been en¬ 1920, has a capital of $40,000, sur¬
$1,860,262 after taxes of $1,357,773 tired on January 31 after over 50
gaged in the investment work of plus of $11,000 and total resources
of
$651,032, while the Peoples which compare with the 1941 net years of service to the bank, but
the Trust Department.
Mr. Sharp
State Bank,
$1,935,602
after
$1,061,949 retains his seat on the Board, and
chartered in 1922, of
was
graduated from Washburn
is capitalized at $50,000, has sur¬ taxes..
./. •'7V; ; >"/ - v'-V:<//v, / -• -' • / that the following appointments
College in 1924 and from New
effective
on
Cash,
clearings 1 and amounts have been made,
York University, Graduate School plus of $10,000 and total resources
due from other banks at $89,102,- February 1; C. T. A. Sadd, C. B. E.,
of
;
of
Business
$853,270.^v\:;;'-/^
Administration,
in
723, represented 23.87% of liabili¬ D. L. and G. P. A, Lederer, M. C.,
1928.
; %://.
at present Assistant Chief Gen¬
The
Union Planters
National ties to the public, while cash and
balances with the Bank of Can¬ eral Managers, to be Chief Gen-/
&
Trust
Edward Miller, Comptroller of Bank
Co.,
Memphis,
ada
alone
represented
11.90%. eral Managers; A. Woods, D. L,,'
the Union Dime Savings Bank of Tenn., has increased its surplus
Total quick assets (including the at present Manager of New Street
New York, died on February 9 at account by $500,000 and become
above items),/together with in¬ Branch,
Birmingham, " to
be
a
a - capital
his home in Teaneck, N. J. - Mr. an * institution. with
vestments
and
call
and' short, Joint General Manager.
Miller was made Comptroller in structure of more than $10,000,loans
secured
by
stocks
and'
December 1934 and was in charge 000,
plus
its
reserves,
Vance
The net profits of the West¬
bonds, represented 68.10% of the
of the Real Estate and Mortgage Alexander, President, reported at
liabilities to the public, compared minister Bank, Ltd. (head office
Department of
the bank.
On the recent annual stockholders'
with 63.10% last year.
Regarding London) for the past year, after
March 25
next he would
have meeting. The Memphis "Commer¬
the bank's showing it is also an¬ providing for rebate and taxation,
completed 31 years' service with cial Appeal" reporting this in its
and
nounced:: v/-;•■■■%
after appropriations
to the
the Union
Dime Savings
Bank. issue of Jan. 15 stated:
"Investments
amounted
to credit
of
contingency accounts,
During this time he served in
"Mr. Alexander said that the
an increase of ap¬ out of which accounts full provarious capacities, starting as a Board of Directors had authorized $160,521,400,
$28,000,000
in the vision for bad and doubtful debts
clerical assistant in the
Secre¬ the transfer of $500,000 from un¬ proximately
year.
Short-term Dominion and has been made, amount to £1,237,In Novem¬ divided profits to surplus, which
tary's office in 1912.
Provincial securities represented 585.
This sum, added to £563,864,
ber 1921 he was made an Assis¬ means a new
surplus account to¬
47% of all investments and the brought
forward
from
1941,
tant
Secretary, and in 1924 an tal of $4,500,000.
With capital of total of both short and long-term leaves available the sum of
£1,Assistant Treasurer of the bank.
$3,500,000 and undivided profits Dominion and Provincial securi¬
801,449, The dividend of 9% paid
Mr. Miller was Second Vice-Pres¬ in excess of
$2,000,000, this makes ties was 85%.
Call loans at $4- last August on the £4 shares and
ident of the New York Savings a total
capital structure exceed¬
538,836, showed a small increase. 6V4% on the £1 shares, absorbs
Banks Real Estate and Mortgage
ing $10,000,000."
Other loans came to $126,777,447, £388,481.
A further dividend of
Forum, and a Director of the
O. H. Hurt, Cashier and Man¬ a
gain
of $3,083,393.
Current 9% is now declared in respect of
West of Central Park Association.
ager of the bank's North Mem¬ loans to business and individuals the £4
shares, making 18% for

the

Guaranty in 1929) except for
a
brief period when he was in
the investment banking "business.

the

total

membership

Louis Reserve Bank

St.

of the

to

452.

The

,

phis branch, was promoted
Rupert C. Thompson, Jr., First Vice-President,
and
Moten

Vice-President and Cashier of the

institution

senior

dent

a

Savings in the City of New York.
Mr. Garner is Vice-President and
Treasurer

pf the Guaranty Trust
of New York and is

Company
considered

The
pany

authority

an

securities.

ernment

United

States

Gov¬

on

,/

■

;

Com¬

Trust

of New York has announced
of

election

sephs

as

Devereux

Jo¬

Vice-President

Financial

Insurance
of

Association

C.

Mr. Josephs

Trustee.

a

Teachers

which

Thomas

succeed

L.

dent.

-

■

"Liabilities

of the bank since

1927, suc¬
as Chair¬

of

customers

under

and letters of credit
$21,244,614, down $10,237,-

acceptances
Dr. A.

H.

Giannini, banker and

were

&

America,

organization

he

associated since 1939.

of

Annuity
has

with
been

He is also fi¬

nancial officer of several Carnegie

Foundations and is Treasurer and

Moses

J.

Barber

a

of Direc¬

500 in the year,

Giannini was graduated from St. up $17,001,918 to $26,590,846."
brother, James Ter¬
hune, in organizing the Freehold Ignatius College, San Francisco,
Xq addressing the annual meet¬
in
1894 and received a medical
was for many years a
Banking Co., the Hackensack Na¬
ing of the shareholders of the
the firm of Graham,
tional Bank, the First
National degree from the University of Bank of Nova Scotia on Feb. 3,
Co. in Philadelphia.
J
Bank
of
Manasquan
and
the California in 1896. He began the H. D. Burns, General Manager,
; ;
Farmers and Merchants National practice of medicine in San Fran¬ reported as follows regarding the
cisco
and
served
as
an
Army
1 ■/
James C. Talley, retired Vice- Bank of Matawan.
cutting down in the number of
surgeon in the Spanish-American branches:
President
of the
National City
War.
About 1908 he entered the
Bank of New York, died on Jan.
The
"In
accordancev with
Govern¬
promotion of Walter A.
as Vice-Presi¬
31 at his home in Yonkers, N. Y., Koerber to Second Vice-President banking business
mental policy of reducing non¬
dent and Manager of the Bank of
at the age of 74... Mr. Talley, who of the
Equitable Trust Co., Balti¬
essential services and to relieve
Italy's first branch at San Jose
retired in 1931, was engaged in
more,
was
recently announced.
the
manpower/ situation,
the
and later was head of the Market
banking throughout his business Mr. Koerber, who has been asso¬
banks generally have cut down
Street branch in San Francisco.
career.
A native of Lynchburg, ciated with the
Equitable since
their branch distribution and in
This bank was founded by his
Allen W. Talley, who was Presi- 1925, was formerly Assistant Sec¬
1942
have
closed
187
branches
brother, A. P. Giannini, in 1904.ciated in business with his father, retary-Assistant Treasurer. ' : ' f;
and sub-branches.
For our part,
Dr.
Giannini's
banking- career
Allen W. Talley, who was Presi¬
The institution also announces
we
have closed 15 branches and
shifted to New York in 1909 to
dent of the Bank of Lynchburg. that
Henry D. Stansbury and C.
one sub-branch and we now have
assume
the
Presidency
of the
He came to New York at the turn Alfred
Spilker have been made
240 branches in Canada and 37
Bowery and East River National
of the century to join the Farmers Assist ant Secretaries-Assistant
branches elsewhere.
Almost all
Bank, later merged with the Bank
Loan & Trust Co., an association
of these closings were exchange
Treasurers; Vernon T. Pittinger, of America National
Association,
which lasted until this institution Auditor of the
company, has been
of which he became
Chairman. arrangements with other banks,
was merged in 1929 with the Na¬
elected to the additional post of
so
that our volume has not been
He returned to California in 1931
tional City Bank at which time Assistant
Treasurer, and J. Ed¬ to become Chairman of the Bank affected. It is a matter of regret
Mr. Talley became a Vice-Presi¬ ward Lucas was named Assistant
to
us
that
wartime
conditions
of America National Trust and
dent of the latter organization.
Auditor.
have made it necessary to close
Savings Association and resigned
branches
at
points
where we
in
1936 to become President of
The Seville State Bank, Seville,
have been represented for many
Eugene W. Stetson, President of
United Artists.
the Guaranty Trust Company of Ohio, has been admitted to mem¬
years, and it has meant the sever¬
New York,
ance of relations with friends and
on
February 9 an¬ bership in the Federal Reserve
Phil A. Strack,'Executive Vicenounced that Dale E. Sharp, Vice- System,
customers of long standing. How¬
according
to
an
an¬
President of
the
company,
has nouncement by the Cleveland Re-' President of the People's National ever, this is one of the inevitable
Bank of Washington, Seattle, has
been transferred from the Trust serve Bank.
The bank was in¬
consequences of the total war ef¬
been elected President of the in¬
fort which makes such great de¬
Department to the Banking De¬ corporated in March, 1914, with a
succeeding
Albert mands on the manpower of the
partment, and will henceforth be capital of $25,000, and now has stitution,
identified
with
the
company's deposits in excess of $500,000. H. Brygger, who retired because of country.
It is quite possible that
of the

Trustee
seum

of

Art.

.;

Metropolitan Mu¬
Prior

banking relationships in the Mid¬
West district, comprising the

in

Illinois,

1924,

of

books

the

on

company

31,; 1942/

.

v

with his late

Mr.




Sharp

A.

Stebbins

dent

and

a

has

served

Director

of

as

the

Presi¬

bank

ill

health.

formerly

an

Mr.

Strack, who

was

officer of the United

further

reductions

ber of branch

in

the

num¬

banks in the coun¬

be made in 1943,
States National Bank of Portland,
this about it is
has been connected with Seattle
The Federal Reserve Bank of
the general policy of all the banks
announces ' that
to see that provision is made for
the banking since 1930.
has St. Louis

Michigan, In¬
diana, Minnesota, Wisconsin, and
Iowa.
Since his graduation from
college

Dec..

1939 he
partner in
Parsons &

dle

of

the

in

Feb. 1 to those sharehold¬
names were registered

on

whose

to

•

States

tax)
ers

£200,000 has been
transferred to bank premises re¬
and
instatement
rebuilding ac¬
count
and
£300,000
to
officers
bia Pictures Corp., died on Feb. 7 transactions.
bank's directorate.
i';-.: v
pension fund, leaving a balance
in Los Angeles at the age of 69.
"Notes in circulation at $5,033,George P. Buell, Vice-President
of £524,487 to be carried forward.
Dr. Giannini, a physician, for¬ 216, were down $1,155,751 in ac¬
of the bank, was, according to
the Providence "Journal," chosen merly was head of the Bank of cordance with Bank Act require¬
The Board of Directors of Swiss
//■;.'">// ,./
Vice-President and Cashier/ and America National Trust and Sav¬ ments.,'/.;
Bank Corporation at a meeting in
Association,
which was
William
"Total deposits of $345,601,552 Basle on
Swift,
III, Vice-Presi¬ ings
February:. 3, approved
founded
by his brother, A.. P. were
dent, was elected Vice-President
$41,723,573 higher.
Of this accounts for 1942, showing net
Giannini, and was President of
and Secretary.
'
total,
non-interest-bearing
de¬ profits including carry over of 9,the
United
Artists
Corporation
posits of the public at $130,587,- 875,180 francs against 9,655,966
from 1936 to 1938.
Since retiring
563, were up $23,017,492.
Inter¬ francs iov 1941, and total assets of
John Terhune, Chairman of the
from his major banking opera¬
est-bearing deposits of the pub¬ 1,366,433,327 francs against 1,370,Board of Directors of the Long
tions in 1936 Dr. Giannini devoted
lic came to $180,413,570, practi¬
Branch
(N. J.) Trust Co. and
094,424 /'francs.
At the general
most of his time to civic affairs,
cally unchanged from a year ago meeting
President of that institution from
on , February
26, ' the
leading' community chest drives notwithstanding
the// substantial Board of Directors will propose a
1916, died on Feb. 1 at Matawan,
sponsoring the Philharmonic Or- withdrawals
made / during
the 4% dividend (same as last year),1
N. J., at the age of 86.
Mr. Ter¬
chestra
and
organizing
United
hune was prominent in New Jer¬
year for two Victory Loan Cam¬
after
which
there
would be a
Service Organization activities.
paigns/Deposits
of
Dominion carry over of 3,475,180.57 francs;
sey^ banking circles for many
A
native
of
California,
Dr. and Provincial Governments were
years,
having
been
associated
against 3,255,965.81 francs.
member of the Board

reflecting reduced
tors and of the Finance and Ex- opportunities
for foreign
trade
L.
Garner
has
been man of the Board.<
Mr. Barber
ective Committees of the Colum¬ and the running off of special
Trustee of the Bank for continues as a member of the

Robert

elected

to

which he was Pierce, Chairman of the Board.
member in years of
Mr. Pierce, who has been Presi¬
ceeds

is

National

in New York

become

of

Club,

service.

the

Guar¬

anty Trust Company of New York

Total
assets
of the Bank
of
Farmers
State
Bank
of
Camp
Point, Camp Point, Illinois, and Nova Scotia (head office.Halifax)
set a new record at $410,467,055
the Peoples State Bank of Gil¬
lespie
Gillespie,
Illinois.,
have as of Dec. 31, an increase of $30,-

to were $5,000,000 above last year's the year; and a further dividend
D. figures.
Reductions were shown of 614% on the £1 shares will be
Cornelius, Assistant Cashier of in loans to Provincial and Muni¬ paid, making the' /maximum of
Mr. Slipper on the occasion of Providence
National Bank, was the Manhattan branch, was ad¬
The divi¬
cipal Governments which were 123/2% for the year.
retirement, and he was also recently named President of that vanced to Assistant Vice-Presi¬
dends were payable (less income
down $1,976,004.

lers Division for many years.
tellers of the
for

the

with

associated

been

Thursday, February 11, 1943

since

1932.

try may have to
but in bringing

CONTENTS

GENERAL

/

(Continued from first page)
Josh

Appointment Confirmed.. 581

Lee

Home

Builders

of

Assured

Govern¬
581

ment Aid
To

. .

>

581

Pan-American Literature Distributed

581

Study SEC Proxy Rules........

Issues

Treasury

1940

Tax

Income

586

.

536
585

;

586

|

Mortgage Bankers Meet in Chicago.. 587
FDR Reports Casablanca Conferences 583
New Capital 1942 Borrowings in
r
Great Britain
583

•

Data

........

i.....................

Chicago Reserve Bank 1942 Report.
FDR Lauds Boy Scout Movement, .

.
.

Philadelphia Reserve Bank Earnings
in 1942

Propose Farm Incentive Payments., 589
Pay on Porto Alegre 7s
590
Canadian Bank Head Says Free En¬
terprise Essential.................. 584
Study Cotton Futures Contracts,.,. 584
MacLeish Resigns From OWI
584
Formula for Liquidation of U. S,Canadian Defense Projects......584
Mutual Savings Banks Increase Fed¬
Investments

eral

Canned
March

Goods

.................

^

,,

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