Full text of Commercial and Financial Chronicle : February 12, 1942, Vol. 155, No. 4045, Section 1

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Final Edition

THURSDAY

In 2 Sections

Section 1

Beg. U. 8. Pat. OOce,

Volume

Number 4045

155

New

York, N. Y., Thursday, February 12, 1942

Insists Over-The-Conntex

REPORTER'S
If®

give below the major portion of the statement made last
Edward E. Chase (representing the Maine Dealers Com¬
mittee); before the House Committee on Interstate and Foreign

the adoption of the proposed Proxy Amend¬
Exchange Act of 1934 unless supplemented
by the adoption of another amendment to protect over-the-counter
opposing

the

ment

Securities

dealers from extermination:
"This

proposed proxy amend¬
if adopted, would extend
greatly the application of the ex¬
isting law relating to the publica¬

made

tion

present law permits the
Exchange to apply to the
Commission for unlisted trading

ment,

of corporate information, by
bringing within its scope many

thousands

corporate

enter¬

prises.
ence

the

According to the Confer¬
Report, it is sponsored by
New York Stock Exchange

and

the

New

Curb

York

Ex¬

change; while the National Asso¬
ciation
the

Securities

Investment

Bankers

tion neither favor
account

within

Dealers

nor

and

Associa¬

oppose, on
of interest

conflict

their

memberships.
The
Securities and Exchange Commis¬
sion, giving the proposal rather
faint praise, calls attention to the
desirability of more financial in¬
formation being made available;,
"The position of the

distributing

dealers whom I represent is sim¬
ilar to the position of the; Com¬

mission,; We would welcome such
additional

information

porations

whose

upon

cor¬

securities

are

without
cost,
(3) of Section

available,

visions

Clause

12 (f), in order to secure unlisted
trading privileges.

"The

Curb

privileges
the

wish

consent

the

without

security

and

of the

against

even

issuer.

dis¬

tributing dealers generally have
been
opposed to this provision,
first because Curb trading in an
unlisted security is an

embarrass¬

Firms, appearing in Albany before the Ways and Means Committee
of the New York State Legislature,
urged repeal or modification
of stock transfer taxes which are
paralyzing the securities business

REPORT'

in New York.
\-i■:y ;..y:
y
/• ■■";y
Though naturally regarded as
The
present tax situation
is^
~
an
undertaking separate and dis¬
jeopardizing New York's position best efforts to get the Couderttinct
from
corporate
financing, as financial center of the
Mitchell
Bills
passed.
If these
country,
details of the Treasury's $1,500,Mr.
Schram
said,
and
lower Dills become law, it will be an
000,000 new money offering, due market
volume, reduced employ¬ inspiration to investment bankers
out today, are awaited with the
ment, loss of building rentals, low¬ and'brokers in other States and
usual interest as a guide to the
ered valuation for real estate and will encourage them to seek the
.

that

contend that it is not in'

the public

issuer
exposed to the danger
interest that

should be
of

and second be¬

security,

general market picture.

irresponsible

ownership

its consent.

and

power is re¬ repeal of laws that
Mr. Schram pointed out to their interests.

reduced

Wall Street admits considerable

confusion in endeavoring to guess
what Mr. Morgenthau may have

that 75%

inimical

are

purchasing

sulting.

of the New York Stock

Exchange's public business orig¬ Lewis
W. Douglas To
regard to type of inates outside the
State, and many
issue, maturity and coupon rate. customers have taken their busi¬
Address N. Y. Bond Club
Frankly, bankers confess being ness
to
out-of-State
markets
Lewis W. Douglas, President of
tired of listening to prognostica¬
where there are lower, or no, the Mutual Life Insurance Com¬
in

mind

with

tions.

taxes. The New York fiscal

But taking their guidance

from the

ing

f:
f

action

Treasuries,

who

speculation in its securities with-'
out

ment to the distributor who deals

cause

Copy

y ..Emil Schram, President of the New York Stock Exchange, and
James F. Burns, Jr., President of the Association of Stock
Exchange

month by

Commerce

Schram And Burns Urge Repeal Or Modification
Of New York State Stock Transfer Tax Laws

;yy: our ;i:

Dealer Be Protected

Price 60 Cents

the

greater
ness

traders

some

and

than

which

watch¬

been

Treasury's

.maturities
;

gency

outstand¬

quite adept figuring

are

prospects, have
ing

ruled

there.

pany

of New York,

will address

the Bond Club of New York at its

longer exists and the tax should next luncheon meeting to be held
be abolished.
"Today," he added, at the Bankers Club on Feb. 24,
^there is an emergency but it ex¬ it was announced today by J. Tay¬
lor Foster, President of the club.
Mr. Douglas recently was ap¬
overstating the
case when I say that this
emer¬ pointed to work with W. Averell
gency is so serious that the po¬ Harriman, the President's special
sition of supremacy which our representative in London, on dis¬

York.

the

heavi¬

average

has

emer¬

tax

ists in the financial district of New

1951-1955

noting

giving rise to this

This particular issue has eased
about % of a point recently. The

not

financial district has long held is tribution
and
delivery of war
now threatened." yy
Preparatory to leaving
y;®®yy;.: supplies.
maturities, it is pointed
shortly for London, he is now in
become much worse if the Ex¬
Mr. Burns stated that a recent
out; are selling at prices to yield
Washington making a special sur¬
change-proposed proxy amend¬ the
buyer from 2.09 to 2.15%.y survey showed a decline of almost
vey in connection with his war
ment should be adopted; for there
44% in employment by Exchange
y Piecing the picture together,
assignment. " v"
y
:
would then be available to
the
member firms
in the
"This

existing

situation,

think, is bad enough. But it would

1952-1954

these

Curb

Exchange

mass

of infor¬

students

calculate

last

that

five

and the data reflect only
mation on small companies, which
Stock Exchange employment con¬
INDEX
could be used in applying for un¬
ditions, indicating only a small
it is believed would carry a
Vy: y
- v/y
y
Pae®
listed trading'privileges in hun¬
part of the shrinkage in personnel Our Reporter's Report
coupon of around 2\i%.
.........640
\
dreds of securities, the distribu¬
and
earning power during the Bank and Insurance Stocks..-654
Of course, if Secretary Morgen¬
tion of which is now.pur principal
toid.
period. He added that the broker¬ Calendar of New Security Flota¬
-y
thau sticks to
long-terms, the sit¬ age industry is facing the pos¬
business.
" " ?>•y
/'■ •' y! V
tions
661
uation would be altered accord¬
| "Nevertheless, it is a fact that the
655
"It is true ■,that such unlisted
sibility of a shortage of skilled Investment Trusts
adoption of this proxy amend¬
ingly.;. And considering the scope
employees because of its inability Municipal News and Notes...1..,... 653
privileges
must
be of the
ment, ostensibly designed in the trading
undertaking there is al¬ at
652
present market volume to meet Personnel Items
public interest, would give these granted by the Commission, and ways the possibility of some of¬
the wages offered by other in¬ Railroad Securities
653
that the Commission must base its
Exchanges,
and
especially
the
fering of intermediates and long
Securities Salesman's Corner (The) 656
dustries which are not placed- at
decision
upon
its conception of
Curb Exchange, a great advantage
terms.
y r.,y
y
a
Tomorrow's Market—Walter.
the public interest. However, you
competitive
disadvantage
by
over the dealers in whose interest
Whyte Says
Schenley Deal "Steaming"
653
will see that this is not an ade¬
prejudicial taxation.
;:,y v
I speak.
Bond
Selector
The New York Stock
(The)............... 655
Bankers who are slated to mar¬
660
The State Legislature has twice Whisperings
Exchange might find it easier to quate answer, if you consider the
ket the Schenley Distillers Corpo¬
Our Reporter on Governments/.... 664
persuade companies to list their practical situation. The Curb Ex¬
passed bills eliminating the taxes, Uptown After 3
660
ration financing, designed to fund
but each time Governor Lehman Jottings
securities, if the information re¬ change is a centralized organiza¬
651
tion.
It has a staff of lawyers and
outstanding bank loans, are re¬
quired for listing had to be pub¬
vetoed them.
statisticians. In a few days it can
ported to be contemplating public
lished anyway; and this may not
The "Chronicle" urges all deal¬
offering early next week, pro¬
be objectionable.
But the New prepare and present a plausible
On the other hand, the dis¬ vided nothing untoward happens ers and brokers and their employ¬
York Curb Exchange wduld have case.
ees in New York State to write to
meanwhile.
made
available,
without
cost; tributing dealers are not organTHE CHASE
their Senators and Assemblymen
(Continued on page 657)
(Continued on page 658)
I
much of the information which
publicly outstanding. ■.« The osten^
sible purpose is so-worthy, and
the argument so plausible, that
one is almost ashamed to suggest
that the whole story has not been

.chances

favor
a
ten-toythirteen-year maturity which
;

years,

...

Albany urging them to use their

NATIONAL

rri

R. H. JOHNSON & CO.

FINCH, WILSON & CO.
Members

New

York

Stock

Exchange
•

,.~V ■

Executed
»

Orders

F. H. PRINCE

V ./'

Broaden your customer

BANKERS

$*+***

Company

64 Wall Street
Commission

New York Trust

INVESTMENT SECURITIES
.

OF THE CITY OF NEW YORK

The

yyy;.

BANK

service with Chase

RHODE ISLAND

PROVIDENCE,

Carefully

for Institutions

;

Capital Funds

New York

correspondent

$37,500,000
HIGH-GRADE

and Individuals

Troy

120 BROADWAY, NEW YORK

facilities

INVESTMENTS
BOSTON

PHILADELPHIA

Albany y

lOO BROADWAY

WHIiamsport
Member Federal

Members

Pittsburgh '""i "TWatertown

Wilkes-Barre

New

York,

Boston

AND 40TH

Deposit Jnturano*

Corporation

-«■

Exchanges,
i

MADISON AVENUE
..

Chicago

Stock

ii-

Vi'iT

STREET

Specialists in

.Carl M. Loeb, Rhoades & Co.
61 BROADWAY

Over-the-Counter
Securities

TEN

ROCKEFELLER

GUARANTEED

PLAZA
l.'

RAILROAD STOCKS

NEW YORK

HART SMITH & CO

Kobbe', Gearhart & Co.
INCORPORATED

Members N.

Y. Security Dealers Ass'n

45 Nassau Street
.

London

Buenos Aires

Tel. Rector 3-3600

New York
Teletype N. Y. 1-576

Insurance

of the

Deposit

New
53

York

Security

Jfflfffiinini

Members

Member
Federal

Dealert

Assn.

GUARANTEED

WILLIAM
Bell

Corporation
New

York

ST.,

N. Y.

Teletype

HAnover 3-0»80

1-395

Montreal

Toronto

II
I

\S~XS

Telephone
BO.

Or.

9-6400

52 Broadway
NEW

STOCKS-BONDS

RAILROAD

YORK

Teletype
N.Y. 1-10M

(I
1

FINANCIAL CHRONICLE

THE COMMERCIAL &

650

MARKETS FOR

Newspaper Quotation Spreads Should Notlp
Deprive Dealers Of Adequate Compensation

MORTGAGE

CERTIFICATES
issued

BOND

TITLE & GUAR. CO.

LAWYERS
N.

TITLE

MORTGAGE

local

other

CO.

TRUST CO.

40 Wall

Stock

York

Neio

St., N. T.

Bell

justifiable

two

Lebanon

complaints

public

first

the

reason

unfounded.

Iowa

gouging

and

brokers

Central, 4s, 1941
Fla., 6s, 1935
Denver, Rio Grande, 5s, 1955
Seaboard All

IIODSON& COMPANY,

:C;Inc.

;

Inordinate profits accruing to the securities dealer.

In view of the recent report

514s ' t
Northern, 6s
Chicago, Northwestern, con; 4%s
InternatT Great

Over-the-Counter Indus.

KATZ~BROS.

;

by<$>

appears
'

sons

formulated to insure

Established

con1-

Members

Broadway, New York

165

| tinuous free public supply and de-

by NASD ; on its mand market before
they ! are
for the year of accepted for listing therein. These
indicated 120 violations- of qualifications must be amply met

This

Of these,! or the quotations will not-be
expelled, others carried.
To insure a continuing public
or admonished.
considers the millions market an ample margin of profit

New

York

1920

Security Dealers Ass'n

Exchange PL, N.Y.

report

BELL

members

1941

Missouri Pacific

for "contracting/the

reasons

NASD

2,883

1-2033

City

Atlantic

Philadelphia

Substantial

Exchange

but

dealers.

WHitehall 4-630(1

Teletype

can

spread between the bid and ask prices on
rial and Public Utilities securities.

companies

Newburger, Loeb & Co.
Members

There

CO.

MORTGAGE

TITLE

TITLE GUARANTEE &
All

CO.
CO.

CO.

MORTGAGE

LAWYERS

STATE

GUAR.

INSURANCE

TITLE

Actual Trading Markets in}'1

;

.-/p

By An Anonymous Dealer

MORTGAGE

HOME

Thursday,' February 12, 1942

HA 2-2772

TELETYPE NY 1-423

good business conduct.
30

were

persons

fined

suspended,
When

Autocar

Corp.

one

of transactions handled by

25,000 to 30,000 salesmen, traders,
customers' men and partners dur¬

Liberty Aircraft

the record is not too
The 30 or so expelled repre¬

ing the

Botany Worsted Mills

bad.

Wickwire Spencer Sbel

J. F.Reitly&Co.
Members
York

New

Security

Assn.

HAnover 2-4660
Bell

Teletype, N.

System

1-2480

of the per¬

whether

plaints

reasons.

the

these

not

for gouging

were

am sure

would

record.

The

Casso

Corp. 6-49

Amer. La France
Shuron

S1/^ & Com.

Optical

see

Simon-pure

However, it has not been
that

gouging is

Great Lakes

Utility 5*/2

Berkeley-Carteret 51/2

Portland Electric Power 6-50

and spe¬

cialists and retailers in over-thecounter securities.

volume

small

The

Members
64

WALL

York

New

Exchange

Curb

ST.

NEW

Teletype NY 1-1140

YORK

HAnover 2-9470

business

The

overhead

dealer

one

unlike

investment

another's

examined

snowflakes

under

i.e.,

effected

transactions
close of the

motive,

Stevens &

transactions

result

will

profit to

any one

of them?

S evens &

Thompson Paper Common

reduction

Houston Oil Co. Preferred

ipal bond

department under the

City Units

Westchester

used by

County Mortgage

Certificates and Bank Stocks

Schoonover, deWillers & Co.

ous

Morse/,'

BROADWAY

NEW YORK, N.Y.
REctor

YONKERS,

2-7624

BeJI

BROADWAY

MArble

Teletype

N.Y.

7-850#

1-2361

Highway 3s

3%s

Consolidated Coai Com. (St. L.)

Missouri Utilities
Missouri

Power

Com.
&

Light

Pfd.

Edward D. Jones & Co.
Established
Boatmen's Bank

1922

Building, ST. LOUIS

Members

York

New

Stock

Exchange
St. Louis Stock Exchange
Chicago Stk. Exch. Chicago Bd. of Trade
Assoc. Member
Chicago Mercantile Exch.
Netf
York Curb Exchange
Associate
Phone

Postal

Long Distance
Teletype—ST L 693

the

trust

newspaper

issues

NASD

those

reflects

appear

other than
Why then should

not other Over-the-Counter

issues

at prices above and below
specialists market which would
also permit a profit to salesmen?
appear

The

unlisted

years

Mr. Morse has
been

associ¬

ated with Otis

their

ager

municip a 1
bond • depart¬
Prior to

ment.

1939,

was

President
Charles D. Mors©

his

own

mu¬

firm
Morse Brothers & Co., Inc. Before
forming his own company, he was
for 13 years associated with Leh¬
man Brothers as manager of their
nicipal

tf:

municipal trading department,

prices

quoted.

the past

three

space

quotations
which their sponsors set to allow a
sufficient margin of profit to act
as
incentive for
salesmen, and
stocks can not be brought from
or
sold to investors by members
of

For

& Co., as man*

declining business and profits.
Individual profit is a correct
motive in any line of business.
Investment

OFFERINGS WANTED

activities. >;.•/

sales, staff

district

bank

and

insur¬

7600

Bell

the

Corporate Reports
Eastern 'Printing
100

Corporation.

Avenue,
New Yofk
prepared:* a most at¬
folder showing samples

Sixth

City,

has

tractive

typograph and papers used in
connection V with
corporate
re¬
of

solicitation,

regis¬
listing
statements,
orospectuses and SEC forms; the
ports,"

proxy

tration

and

folder

also

contains

time-¬

public utility, and industrial table for proxy procedure and
stocks and bonds quoted in the questions with respect to annual
Copies
newspapers
must qualify as to reports to stockholders.
size of issue, dumber of holders, of the folder may be had upon

management or control ownership,
area
of
distribution,
financial

request by writing to Andrew F.
Gibson, manager of the corporate
division.

Trading

McCormick
ducted

Co.

will

con¬

Raymond
Billett.
ft. Connell, J. W. Hirsch,

James

Atlas

Consolidated
A

6s,

Plywood Preferred

American Maize Products
Central Paper Common

Insurance Stocks

Harry N. Pritwhom

South

are

Nat'l

Mr.v

mick,

Poli New

Brown &

Harry Parkier Co.
74

Baltimore.

D. D. McCormick

The partners
of the

tified

tirm have

new

for

many

been iden¬

investment

with: the

years.

busi¬

All reside

PINE

ST.,

WHitehall

Teletype NY 1-609

4-4970

63 Wall

Members New

York

Security Dealers Association

St., New York, N. Y.

DEALER BRIEFS

the Chicago area,

with the ex¬
ception of James R. Connell, who
will be the partner in charge of
the New York office.
firm

The

will

un¬

derwriters, distributors and deal¬
ers in United States Government,

and corporate securi¬
'■''

municipal
ties.'

Kingston, N. Y.

function

the past decade

During
found

short

First

Erie H.
York

form

Marks, member of the
Stock Exchange, will

Eric

Marks

Co.

partnership with James Campbell,
on Feb. 19th.
firm will be at 42

Offices of the
Broadway, New
Mr. Campbell will

Jr.,

City.

alternate for Mr. Marks

floor

recently

term

rail

for

the
serv¬

the

ence—Earl

some

And

rails.

of the short
dupli¬

are

1935-1937
H.

this

served

the

divisionals

experi¬

Newbery,

Chil-

Newbery & Co.

the

"All Sunshine
Makes The Desert"

invite

inquiries and furnish
Markets in

Trading
-

Petroleum

one

utilities

then

son,

grade

income buying clientele.
the

cating

have

medium

media

effective

purpose;

New

term

bonds

underlying
most

ing

Forms Eric Marks & Co.

Ohio Match

Boker To Be Partner

mitted

■

Bell Teletype NY 1-897

partnershin in F. S.
Co., 14 Wall Street,
New York City, and 50 Congress
Street, Boston. Mass., members of
the New
York Stock Exchange
Moseley

incorporated

Teletype NY 1-1102

Sons,

Frederic H. Hatch & Co.
.

Trinity Place, New York, N. Y.

WHitehall 4-8565

Hermann D. Boker will be ad¬

G.A.Saxtoit&Co., Inc.

the

Alex

Pfd.&Com.

Indianapolis Railways 5s & Com.

Chicago office
of

England Theatre 5s

Industrial Real Est. Tr. 3s

man¬

ager

R»

Port C.inton

Fireproof ing 5s & Com;

wno

resident

Pfd. & Com.

Corp. 6s & Pfd.

Southern Cities
1958

4-0488-89-90-01

Fulton Iron Wks. 6s,

McCor¬

Coast

Culver

principals i' of
Stern, .Warnpier
&
Co.,
Inc.,, with the *
exception
of -

•

5s,

WHitehall

Van Camp Milk

chard,' all

1962

Utilities

Exchange

Byfield & Co.

Lawrence Portland Cement

Electric & Gas

Stock

Grand Trk. Whse. & C. S. 3s,w.s.

and

mick :<

Exchange under
section' 15, article IX of the Ex¬
change's constitution.
Mr. Marks
was formerly an individual floor
broker
and
was
a
partner in

Trading Markets in
Bank Stocks

York

New

BROADWAY, NEW YORK, N. Y.
Teletype NY 1-1702

McCor¬

Dean

the

Common

Members

Tel.

Richard

act

1948 &

Department

DURYEA & CO.

which

partnership,

includes

York

Trading Markets in

6s,

Warrants

Kebbon,

ance,

Commonwealth Gas

Triumph Explosives

near

future.

R. A. Kebbon

ness

qualification and other logical rea-

CEntral

Common

ex¬

bond

firm's

the industry, the continu¬

financial

the

Formal

Triumph Explosives

Kebbon, John
pansion of the C.
Marshall, D.

■

office

Tnis

important

in the

holidays, and reduction of salary
and wages received by the people

Arkansas

step marks an

consolidation of firms/ Scotch

INC.
120

dealers'

agemerit

Charles

NY 1-1557

is expected in

the opening of a muniC*

announce

New York, N. Y.

York

announcement

Newbufger, Loeb & Co., mem¬
bers New York Stock Exchange^

registered dealers, the
in

contraction

and

Tudor

■

All

number of

and
49
Street,

City.

excessive

The continuous decrease

bh 198

25 Broad St.

Chi-

Street,

Newburger, Leeb

several

Direct W'r»
oc¬

New

not

new

Members New York Stock Exchanac

Maritime Bldg. Brown-Marx Bldg.
New Orleans, La. Birmingham, Ala.

South La Solle

ago,*

impossible

whether

will

Wall

industry., Under

determine

firms

Thompsna Paper VAs, 1958

point

■;•v/iv:'/.-/.'-

The

Steiner, Rouse & Co

cupy

the

after

man

identical

Phila. & Read. C.&l. 6s 1949

Inc.

firm

exchange allowed the

house to make a profit of lk

price, amount, and issue, might
have
varying charges for tele¬
graph, telephone,.etc., etc., thereby
changing the net profit accruing
to the different firms.
Similarly,

such conditions is it not

Debardelaben 4s, 1957

Stern,
Wampler
&
Co.,
Inc.,
at
211

profit

microscope. ' Ten trades identical

manufacturing

such

the

For

Birmingham El. 7% Pfd.

the pres¬
ent quarters of

or more.

in authority can accur¬

one

con¬

over-the-counter, was ef*
because of the incentive

fective

Alabama Mills

business

Stern,
Wampler
&
Co.,

profits."
No

ducted

"inordinate

Co.

formerly

•

quotations

newspaper

Announce¬

the investment

continue

tribution of large blocks of listed

—

McCormick*. &

transacted by

production costs differ in the hun¬
dreds of units comprising a single

Phils. & Read. C. & 1.5s, 1973 C/Ds

-CHICAGO, ILL.

ment is made of the formation of

Kebbon,

Fiank C.Masterson & Co.

in¬

both the

for narrow¬

reason

that

cause

ately determine the costs of doing
business in the securities industry.

■

second

ing
the
would
be

Texas Gas Utilities 2-6-51

vestment trust sponsors,

other stock,

that the whole

for public complaints.
V

com¬

membership of the NASD

revealed

allowed

must

the exchanges is in
sons engaged in this work.
While no small part attributable to the
it lists 120 complaints it does not
negligible commissions allowed;
define
the
type
of
violations, whereas it has been conclusively
therefore it is quite impossible to shown in recent months that dis¬

of
Y.

year

sent about 1/10 of 1%

state

Dealers

New York, N. Y.

50 Broad St.,

perhaps

Kebbcn, McCormick Co.
Is Formed In Chicago/

and

Copper Canyon Mining

other leading national
changes, as of Feb. 19th.
.

Conversion Corp.

Virginia Iron Coal & Coke Co.
B/G Foods

ex¬

S. JOSEPH FLORENTINE
Established
11

1937

BROADWAY, NEW YORK

Telephone WHitehall

4-0386

Volume

THE. COMMERCIAL & FINANCIAL CHRONICLE

Number 4045

155

COMMERCIAL and

•

Wall Streeters Bold

FINANCIAL CHRONICLE
U.

Reg.

Patent

Office

i v-v;!Publishers
25

' '

The Wall

Spruce Street, New York
BEekman

big

3-3341

Herbert D. Seibert,

Editor and Publisher

Red

;

Frederick W. Jones, Managing Editor

held

New

William
i

Dana

Seibert, President

Published

three

times

1942

12,

week

[every
advertis¬

Thursday (general news and
ing issue)
with statistical issues

•j;

.Tuesday and Saturday]

;

Fred

Gray, Western Representative,
Field Building (Telephone State 0013).
London—Edwards & Smith, 1 Drapers'
Gardens, London, E.C.'
Copyright

1942

William

Daha

Cbmpany.
Reentered

12, 1941, at the post office at
New York, N. Y„ under the Act of Mar.
3, 1879.

Subscriptions in United States and
Possessions $26.00 per year; in Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain,
Mexico
and
Cuba, $29.50 per year; Great Britain,
Continental Europe (exceptSpain), Asia,
Australia

and

NOTE—On

Africa,
of

account

$31.00

per

year.

fluctuations

the

in the rate of

exchange, remittances for
subscriptions
and
advertise¬

foreign

ments must be made in New York funds.

Railroad

the

our

AND COMPANY

DEPARTMENT

"NOT WORTH

Hawaii
on

Public Utility
ISSUES
-

;

U, S* Defense Bonds
The

National

Security Traders
Association has announced through
its President, Herbert H. Blizzard
of .Philadelphia, that at the semir

■•■'t

annual meeting of the Na¬

tional

Com¬

mittee

the

Assoc iation,

held[ in

Chi¬

cago,

As-

s o c

the

i a t i

o n

I voted

in-

vest 25% of its

entire

treas-

in United
$j States Defense
ury

■\ Bonds and

cooperate

through its 2,400

members
the sale of

Defense Bonds
the

4 Herbert H. Blizzard

public.
also

was

decided

-make

substantial

I the American Red

donation

to
to

Cross.

cities, from coast
were
represented by

Twenty-two

ito

coast,

they

market

tell

you
there's
no
that Inaotive secur¬

for

ity?

when

Dec. 7

Well, we've proved "them"
wrong again and again.
Get our
Appraisal. ;

Spencer Trask & Go.

Obsolete,Securities Dept.

25 Broad

the

and

Street, New York

Telephone HAnover 2-4300

called into immediate action

Members New York

for the victims.

Stock Exchange

Members

York

New

Curb

STREET,. NEW

Telephones

Teletype NY 1-5

/ >

99 WALL

Exchange

YORK

Whitehall '4-6551

Buy Defense
the

Stamps and Lick

Other

Side

Some

3,000 individuals engaged
in
investment
banking,invest¬
ment
advising, and ' security or
commodity brokerage, were pres^
ent.

actress,
eral

Merle

Reynolds Realization

5s,

Oberon, motion picture
and Leon Fraser, Gen¬

Chairman

the

local

1946

Aldred Investment Trust

War

4% s, 1967

Fund

appeal, were speakers, and
Lewis
E. Pierson,
The new Price Control Act does not seem likely to be either as
Chairman of
the Finance Section, presided.
harmful or as useful as it looks. Events have run on ahead of it and
There was music by a drum and plugged most of its holes.
; '
bugle detail of the Grand Street] y w4 True, it seems to permit a vicious price spiral shuttling back
and forth between wages and farm prices; because wages may be
Boys' Band.
Members of the committee ar¬
adjusted upward to farm prices (by cost-of-living bonuses, direct or
ranging the meeting are:
indirect) and then farm "parity <§>•
Charles B.
Crofton, President, prices" are automatically adjust¬
of the New York Produce Ex¬ ed upward to the higher cost of
change;
Myron
G.
Darby,
of industrial products.
Prospects for the future of the
But in the first place the De¬
Darby & Co.; Frank Dunne, Pres¬
market appear brighter than they
ident,
N.
Y.
Security
Dealers partment of Agriculture appar¬
have been in some time, accord¬
Association;
I.
Henry
Hirsch. ently has' both the will and the
ing to the recent issue of "In¬
President, N. Y. Cocoa Exchange;1 means at this time to hold farm
vestors' Weekly Trend Analysis,"
Charles S. McCain, Dillon, Read; prices down by release. of CCC
prepared by Norman H. Adelson,
& Co.; Robert J. Murray, Pres-,
holdings, particularly of grains of H. G. Einstein
& Co.
"Despite
ident, N. Y. Cotton Exchange; and cotton. The present corn-hog
the grave war news in the Pacific
William
W.
Pinney,
President, ratio, for instance, is highly fav¬
theatre and Singapore," says the
N. Y. Coffe & Sugar Exchange; orable to hog-growing, but it can
study, "despite the certainty of a
George P. Rea, President, N. Y. remain so only if the price of
substantially increased tax burden
Curb Exchange; Henry G.v Riter corn
is
held
down
and
it can
on the corporations of the coun¬
3d, Chairman, N. Y. District, Na¬ easily be held down at this stage
try—despite the prevailing pes¬
tional
Association
of
Security by CCC sales"
simism over rising costs and re¬
Dealers, Inc.; and Robert L. Stott,
But the principal
fact which duced earnings, there is every
Chairman of the Board,
,Y; limits the
importance of the Price reason to believe that the market
Stock Exchange.
Control Act is that it has mean¬ is
looking beyond and ahead of
ing only where it applies to a current news and begins to see
free market at free prices, and better news for the future.
It
Bergen In Armed Service
that
market
is
steadily
being may be that inflationary tenden¬
John J. Bergen, President of;
shrunken.
cies are taking hold or that a
John J. Bergen & Co., Ltd., New
Here are some of the iways it brighter war picture looms ahead.
York
investment firm, has
en¬
is being shrunken.
It may be that the reasons for
|
tered the Naval service of the
More
and
more
commodities higher stock prices are not- yet
nation as Lieutenant-Commander.
are now being, entirely by-passed
apparent.
Regardless
of
the
He will act as Treasurer of the
from
the open
market through reasons, however, it appears that
Committee on General Arrange-;
Government "ownership
through the market future has turned
ments for the Navy, relief show to:
the I Commodity Credit Corpora¬ brighter than it has been at any
take
place at Madison Square
tion, Defense Supplies Corpora¬ time recently.
Garden on March 10th.
^
"It is most important to note
Edward Boehm, formerly Vice- tion, Metal Reserve Corporation,
Rubber Reserve,
Treasury Pro¬ that from the news angle, there
President of John J. Bergen &
curement, Army, Navy, etc.
The was every reason for an impor¬
Co., Ltd., will go to Detroit as
are
"ever - normal tant decline to materialize in the
Vice-President of Gar Wood In-f key - words
granary"
and. "stockpiling"
of last few weeks.
Reverses in the
dustries, Inc.
■
"strategic commodities." Few real¬ Pacific coupled with threats of
ize how economically fashionable severe taxes offered
ample ex¬

Market Looks

jNSTA Votes To Buy

ADIME

Municipal

was

Industrial

Greater

[iCHTOSllin

account
of
given oy Col.
Moorhead, noted surgeon

was

care

DEALERS

the services of

TRADING

eye-witness

Jap bombs burst

second-class matter Sep¬

tember

Exchange for
;

Harbor

who

pother offices: Chicago—In charge of

first

the floor of the New

York.

John J.

was

District's

Cross War Fund

Pearl
?

Produce

Riggs, Business Manager

Thursday, February

York

Street

We offer you

rally since Pearl Harbor

war

was
,

1.44 William

OUT-OF-TOWN

Rally For War Fund

William B. Dana Company

651

.Indiana Limestone
6s,

1952

Joseph McManus & Co.
Members

New^ York Curb Exchange,
Chicago Stock Exchange

Higher

Broadway, New York

DIgby 4-2290

Tele. NY 1-1610-11

Are

Specialists

REAL ESTATE SECURITIES
Inquiries

Invited

Lawyers

Mtge.

Co.

Lawyers

Title

Co.

Ctfs.

Mtge.

Co.

Ctfs.

Title

Co.'s

Bond
and

&
ail

Bank

other

Trust

Ctfs.

Participations

Complete Statistical Information

U.GOLDWATER&CO
INC.
Members New York Security Dealers Assn.

Broadway, New York, N. Y.

HAnover

2-8970

Teletype NT

1-1203

Municipals Vs. Fire Stocks

stockpiling has become. First ap¬
An; interesting
circular
has* plied to a handful of "strategic
materials" it is now being extend¬
been
issued
by Hare's; Ltd;, 15
ed
to
such
things
as
textiles
Exchange Place, Jersey City, is. J.,;
,

for

cuses

important

decline.

The fact that the market has re¬

sisted this

news

makes it appear

St. Louis Southwest
45s, 1952

Central of

Georgia

Cons. 5s, 1945

Macfadden Publications
Cora, &

Pfd.

Valvoline Oil
Com. & Pfd.

;

ATLANTIC INVESTING

CORPORATION
67
-

WALLST., NEW YORK, N.Y.

Telephone—BOwling Green 9-3000
Teletype—NY 1-1625

that the technical position has
comparing the relative
invest-: (osnaburgs), sugar (for either al-'
cohol or food), automobiles, scrap, improved—improved to such an
ment
desirability 4 of municipal
bonds and fire insurance stocks, hides, etc. It is simply the going extent that it is now safe to take1
for Government owner¬ on long commitments.
and stressing the particular at-i phrase
tractiveness of fire stocks at this ship, and an ironic reflection on
"It is also important to select
time.
Average annual yield* is; the inaccuracy of one-time So¬
cialist
dreams
that
government securities carefully, particularly
compared for each year from

1925;

through 1941, relative certainty of ownership would come primarily
income is compared as well as through ownership of "the means
market

value

Copies
had

upon

and

of-

production.".

of 4 the

appreciation.;

Rationing (plus industrial allo¬
circular may be1
also
shrunk
the
free
request from Hare's; cations)

Ltd.

V (Continued

on page

654)'

regard to tax liabilities.

curities

which

verely from
tax

based

vested

might

suffer

Se¬

Lincoln Fire Ins.

se¬

high excess profits
percentage

Brinks Inc.
Beaver Mills Co. 5s, 1950
Nat. Fire Proofing Co. 5s, 1952

of in¬

capital should be avoided."

Steiner, Rouse & Co.
Members New

Direct

Irwin

„

Harris

Mr.

Uhat

Blizzard; also
Irwin

Harris

mittee.

Public

NY 1-804

announced
Scherck,

Telephone WHitehall 4-6830

Public

Com¬

Relations

BONDS

I. D. Berg
CHICAGO,

Utility

Industrial

Railroad

Municipal

Berg,

office

G. Becker
100

manager of A.
Co., Incorporated,

Co.

Mr.

contribute his long
in
the
investment
field to help raise funds for the

Berg

will

effort

Savings

'.Treasury.

under

division

Bond
^

the

Defense

■. "

the
(

PREFERRED

STOCKS

Complete Statistical information
Inquiries Invited

A.CAlXYM*®COMPANY

experience

war

SECURITIES
BONDS

South
La Salle Street, has retired after
more
than 52 years of service
with the firm and its predecessor,
Schaffner

Specialists in—

WATER WORKS

Retires

ILL.—I.

Herman

BH 198

New York, N. Y.

| Richter & Co., St. Louis, has been
appointed Chairman of the Asso¬
ciation's

Wire

25 Broad St.

delegates at the meeting.

;

York Stock Exchange

Maritime Bldg. Brown-Marx Bldg.
New Orleans, La. Birmingham, Ala.

R.E.Swart&Co.
!NC(5RPO»ATFO

Incorporated

Investment

Securities

„

CHICAGO

40 EXCHANGE PLACE, NEW YORK

NEW YORK

Tel.: HAnover 2-0510

Tele.; NY 1-1073

■

_XJ,

652

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, February 12, 1942

DIVIDEND NOTICES

DALLAS

Canadian

AtlasCorporation
Dividend
Notice
dend

25tf

declared

12,

the

per

has

Common

been

Stock

Traded

Funds

Corporation,

1942, to
record' at

payable

March

a *

;

••

-•

the

Walter A,

HOMESTAKE MINING
Dividend

No.

The Board-of Directors

Members

Toronto

Stock

Broad

record

3:00

Checks

February

elected

DODGE, Secretary,

•Spencer Kellogg & g>on$, 3nc.
Y

per share
has
on
the stock, payable March
10,
Stockholders of record as of the close
business February 21, 1942,

declared

1942,

JAMES L.

WICKSTEAD,

the

elected for

were

TEXAS

dend

GULF

Board of
of

SULPHUR

Directors

cents

has

Governor
and

term

for

three

term,
Gratuity

one-year
of the

trustee

one

for

The
divi¬

share on the Company's
capital stock, payable March 16, 1942, to stock¬
holders of reccrd at the close of business
March

per

and

H. F.

firm

newly

elected

affiliations

KNOBLOCH, Treasurer.

Governors

Stock have

William H.
Bantel

Common

ler,

been declared, pay¬
31,1942, to respective

able March

Treasurer

Philade'phia, Pa.

(Special

Co.; William

Adams

Broad

genthau

announced

that

tenders

the

'on

Feb.

Mul-

mature

offered

were

13,

1942, which
6, were

Member of the Board of
Governors (Class "B")

for___$399.966,000

Total

accepted
150,049,000
Range for accepted bids (ex¬

cepting

two

tenders

Connor, Wilcox & Co.;
Williamson, Thomas Ma'r-

(Two-year

totaling

son

Co.

Equivalent rate

(One-year

Low—99.932.

Equivalent rate
approximately 0.269%.

Benjamin

Average Price—99.937. Equiv¬
alent rate
approximately 0.250%.
(17% of the amount bid for
There
lar

price

was

issue

amount of

maturity of

bills

Feb.

Laird

*Class

"A"

which there

Stokes, Wolf & Go. Add

**Class

Governors,

are

Mortimer

Carley

Co.,

with

Inc.,

Street.

105

Mr.

years,

ness

become

South

Salle

banking
Chicago for many
formerly a partner in

Cjkrley & Co., - and prior

Was

thereto

partner in Carley, Pattison

| Co. qnd its predecessor, Philip
f. Pattison

& Co., and
[orrill, Clarke & Rich.

was

with

The

STOCKTON,

Financial

According to

CALIF.—Leo

Distributors,

Inc., has become associated with
Dean Witter &
Co., 18 South Sut¬
-

has

Charlotte

and the 4%

Railroad

Air

Pizzini

Line

these

Railway

two

The situa¬

issues

dis¬

Stock

Quotations"

February which also contains

prices and other interesting data
on

guaranteed stocks of railroads

throughout the nation.
the

Financial

ILL.

(Special

as¬

LOS

"Quotations"

may

Copies of
be

The

main

office

from the firm upon
request

Detroit

Wiley

The

Exchange

NEWARK

Financial

Jensen

(Special

associated

years

Chronicle)

and

—

Alexander

Public Service Coord.

Leitch, .previously
with
M.
H.
Lewis & Co., have been added to

Stock

BUILDING

DETROIT, MICH.

The

Financial

Transport

•Is, 1990

the staff of Fewel, Marache &
Co.,
453 South Spring Street.

Chronicle)

—

Bruce

Financial

Co., Inc.,

Jersey City, Hob. & Pat. St. Ry.
•Is, 1949

Hoboken Ferry Co.

Chronicle)

1st

5s,

1946

Co.,

135

South La Salle St.

CHICAGO,
ment

18 Clinton St.,
(Special

LOS

by The Illinois
Chicago, 231 South

St., that Stephen J.
formerly with Knight,
Dickinson & Co., has joined their
sales organization.
Mr. Frawley,
Frawley,

The

Financial

Chronicle)

with

now

MArket

New

the

University

The

Financial

—

Arthur

McIIenry, formerly with Dean
Witter & Co. and Wm. Cavalier &

Co.^is associated

with

Davies

Co.,'Russ Building, San Francisco.
(Special

The

Financial

Dickinson, since the organiza¬
last named

Financial

CLAIRE,
is

Bingham,

SAINT LOUIS

joined the staff of
Chas. A. Day & Co.,
Inc., Sears
Building, Boston, Mass.

509 OUVE ST.

1930.
ST.

Chronicle)

The

Financial

LOUIS,

Chronicle)

MO. —Robert

WIS.—Austin T.
affiliated

Gardner, 400 Locust Street.

Sheldon

Co.,

with

Milwaukee,

now

with Reinholdt &
Members

St.

Louis

Stock

Exchange

whose

main office is located at 735 North

St.,

MAINE —Robert

Maysack is

now

Co.

Chronicle)

D. Eastman has

EAU

'■

Chronicle)

CALIF.

Co., and its prede¬
organization, Nichols, Terry

The

2-4383

3-3430

Phone—REctor

ST. LOUIS
to

OAKLAND,

PORTLAND,

of the

York

Building.
(Special

with Knight,

Dickinson

Franklin

Announce¬

—

Salle

graduate

1891

Newark, N. J.

Wulff & Co., Inc., Bank of Amer¬

ILL.

ANGELES, CALIF.—W.

Thompson

made

Company
La

Established

Building, San Francisco.

Chronicle)

ILL. — Frank
E.
joined the staff

Lewis

J. S. Rippel & Co.

Protected Investors of America,
whose main office is in the Russ

has

Benjamin

(Special

SAN

Wis.

Mr.
Ryan was previously connected
with Knight, Dickinson.& Co. of

to The

Financial

Chronicle)

FRANCISCO, CALIF.—H.

Andreasen,

Guardian

formerly

Securities

SALT LAKE CITY

with

Corporation,

Chicago and its predecessors for

Ltd., has become associated with

many years.

Franklin Wulff

(Special

FT.

•

The

Financial

WAYNE,

Schnee

Chronicle)

Co., Inc., Russ

Specializing in

IND.—Carl

UTAH-IDAHO SUGAR

(Special

connected

SAN

Lynch, Pierce, Fenner
&
Beane, Old First Bank
Building. Mr. Schnee was pre¬

Arthur

has

become

with Merrill

Central

(Special

The

Financial

HARTFORD,
Moore

Securities

Chronicle)

with

associated

with

Eddy Bros. & Co., 33 Lewis St.
(Special

The

Financial

Chronicle)

SANTA

The

ANA,

Co.,

lin

Wulff

Russ

Co.,

with

Inc.,

Webber

Spurgeon

Financial

ster and

Blodget.

Bell System

Inc.; Thomson & McKinnon
Clark, Childs & Keech.

and

for

The

Financial

HARTFORD, CONN.—Cedric
Boardman,

formerly with C. S.
Co., has become con¬

nected

with

Pearl St.

(Special

Chronicle)

Merrill

Co.,

The

TAMPA,
O'Harra

FLA.

has

with Bedford

tion,

505

O'Harra

Financial

herself

House

Utah

(Special

associated

Street.

The

Cincinnati,

Ohio,

City.
Financial

Mueller,

for

has

many

Chronicle)

years

Wisconsin

become

with

Securities

connected

with

A. C. Allyn & Co., 100 West Mon¬

Chronicle)

Edna

WAUSAU,,:WIS.—Arthur E. A.
Northern

Securities Corpora¬

Twiggs

was

—

become

Teletype SU 464

Investment

and New York

Co.,
(Sppcial

1899

Salt Lake City, Utah

Chronicle)

SPRINGFIELD, MASS.—Bertjoined the staff rand H. Thompson has joined the
Pearl staff of Tifft Brothers, 1387 Main
Mr. Thompson was pre¬
formerly with Street.
&
Co., Lazard viously with Bond & Goodwin,

Freres & Co., and Stone &
Web¬

Established

160 S. Main St.

Oldest

The

request

& COMPANY

Fran-

Building.
to

EDWARD L. BURTON

Chronicle)

of Lee Higginson
Corp., 36
St. Mr. Snow was

Paine,

Analysis

CALIF. —Ran¬
now

SUGAR

connected

Financial

dolph Roland is

AMALGAMATED

CALIF.—

now

Wulff-Hansen

(Special

Chronicle)

Tha

FRANCISCO,
Fuller

Building.
Mr. Fuller was previ¬
ously with Revel Miller & Co.

CONN.—Roswell

now

Bissell

had

PENOBSCOT

Chronicle)

ANGELES, CALIF.

CONN.—Willard
particularly attract¬ A. HARTFORD,
Snow, I Jr., has

cussed in the B. W. Pizzini &
Co.

for

The

Members

ANGELES, CALIF.—Ken¬

(Special

stock of Beach Creek

are

Co.

510 South Spring Street.

pany,

Investors

Financial

many

LOS

Charles A. Pa reel Is 6* Co*

previ¬

was

Bond

neth H. Thompson has become af¬
filiated with G. Brashears & Com¬

become

whose

The

(Special

the

viously with
Corporation.

"Guaranteed

Chronicle)

[Dentone, formerly local manager
ffor H. R. Baker & Co. and
Asso¬
ciated
American
ter Street.

for the public.

Co.,
52
Broadway, New York
City, specialists in railroad se¬
curities, the 9%^ stock of Atlanta

tion

(Special

Tay

Building.

Governors,

ive at current levels.

)entone With Dean Witter

Inc.,

Exchange.

"B"

RR Issues Look Good

Carley, who has been

was

; of

regular

Stokes, Woolf &

active in the investment

business

are

ber partners of regular or asso¬
ciate member firms
doing busi¬

William

has

15,

of
which there are 12, are associate
member partners or non-mem¬

Wm.Carley To Staff
associated

Miss

the

Chronicle)

First

CHICAGO,

Water

& Co.
;

—

Term)

members of the

ILL.

Corp.,

main

CONN.—Fred¬

with

Wanamaker

Ryan

Gratuity Fund

whose

Building, San

Morrison

with

(Special to

Jr.,

Co.

(One-year

$150,018,000.

CHICAGO,

Hilton

(8pecla1

McAlpin,

America,

its

tion

George Herrel, Wagner, Stott

simi¬
11

Trustee of the

accepted.)

was

(Special

Term)

CALIF.—Ruth

with Protected In¬

now

SECURITIES

Chronicle)

LOS ANGELES, CALIF.—Les¬
Knight, Dickinson & Co. ter J.
Washburn, previously with
predecessors, has become1 Morrison Bond
Co., is now with

with

cessor

Member of the Board of
Governors (Class "B")

approximately 0.198%.

at the low

Financial

Wisconsin, had been

Charles E. Judson, C. E. Jud-

$230,000):
High—99.950.

The

CHICAGO,

Term)

BEACH,

office is in the Russ

ica

SaliS & CO. I

revealed:

are

"•

Glass, for

E. M.

opened at the Federal Reserve
Banks on Feb. 9.
The following
details of this issue
Total applied

Funds,

affiliated with Blyth &
135 South La Salle St.

Gratuity Fund
(Three-year Term)

Feb.

been- added

(Special

Trustees of the
•

Financial

Graybar Build¬
ing, New York City.

and

Wisner, Penington, Colket &

LONG
vestors

The

ously

Chronicle)

Wisner.

for

May

Financial

MASS. —George

Trust

located

H. L.
Thomas W.

(Three-year Term)

E. Tay is

asso¬

Roth,

Co.;

Dixon, C. M. Loeb,
Co.; Allen J. Nix,
Riter & Co.; James G.
Tremaine,
Gude, Winmill & Co.; Herbert

$150,000,000
or
thereabouts, of 91-day Treas¬
ury bills, to be dated Feb. 11 and
to

Lillian

—

become

St.

Shares
is

W. Palmer

Offering

The

has

erick

Members of the Board of
Governors (Class "B")**

Rhoades

Secretary of the Treasury Mor-

BOSTON,

sociated

Hassinger, Garvin,

Frederick

Bill

has

(Special

Francisco.

(Special

Bartsch, W. R. K. Taylor & Co.;
Landsberg, Brickman,
Landsberg & Co.
'

;

Chronicle)

MASS.

Frost

BRIDGEPORT,

Mortimer

THE UNITED GAS IMPROVEMENT CO.
I. W. MORRIS

Buchanan

holders of record February 27, 1942.

January 27,1942

Financial

BOSTON,
Thomas

follow:

(Three-year Term)

cents

The

ciated with Clyde F. Frost Co., 10
Post Office Square.

staff

term.

one-year

Members of the Board
of
Governors (Class "A")*

The current quarterly dividend
of $1.25 a share on $5 Dividend
Preferred Stock and a dividend of
15

Trustees, together with their

1942

(Special

column.

years, one

COMPANY
declared

lication in this

Class "B" Governor for
two-year term, one Class "B"

LISTED AND UNLISTED

contemplate making additions to your
personnel, please
particulars to the Editor of the Financial Chronicle
for pub¬

you

send in

Class

The

was re¬

In addition to Mr. Moffatt,
"A"
Governors, four
Class
"B"
Governors, and two
trustees
of
the
Gratuity Fund
five

held

year.

Fund

Treasurer

Exchange

election

Curb

Chairman of the Board
Governors for a term of one

A quarterly dividend of $0.50

been

annual

York

Feb. 9, Fred C. Moffatt

;

per share was declared on the
capital
stock of Newmont Mining
Corporation, payable
March 16, 1942 to stockholders of record at
the close of business
February 24, 1942.

H. E.

the

New

! |

TEXAS

DETROIT

PERSONNEL ITEMS

1942.

Southwestern Securities

Ft. Worth-Houston-San Antonio

cents

"...

RAUSCHER, PIERCE & CO.

York

N. Y. Curb Re-EBects

P.M.

mailed

Check

Curtis

dividend

Dividend No. 54
?
On February 10,
1942, a dividend of 37%

Jackson

1-1619

DALLAS,

declared

Corporation

New

1951;

All Texas Utility Preferred Stocks

850

has

Newmont Mining
j

Tele.

Dallas Ry. & Ter. 6%

Exchange

February 20,-1942.
Irving Trust Com¬
Disbursing Agent,
.
R. A. CLARK,
Secretary.

Dividend

pany,
■'

o'clock

will

•

St., New York, N. Y.

2-7673

Toronto

COMPANY

350
of
thirty-seven
and
one-half
cents
($.37*2) per share of $12,50 par value Capital
Stock, payable February 25, 1942 to stockholders
of

Great Southern Life Ins. Co.

Southwestern Life Ins. Co.

Peterson, Treasurer

No.

■,

New Mexico Gas Co. Com. & Pfd.

,i;(

F.W. Macdonald & Co.

•

Pepper

Republic Insurance

business

HAnover

;

y.r

February 10, 1942.

Quoted

—

holders of such stock

February 20, 1942.

;

Dr.

UTILITY PREFERREDS

divi¬

Sold

—

Atlas
of

that

hereby given

Bought

Securities

Common Stock

Miss

formerly in business

roe

Street, Chicago, which main¬

tains
kee

tional

branch
the

office in

First

Milwau¬

Wisconsin

Bank Building.

Na¬

Volume

THE COMMERCIAL & FINANCIAL

Number 4045

155

Tomorrow's Markets

Whyte

653

Chicago, North Western Railway Company

■/.

Delaware & Hudson
"Guaranteed Stocks"

Walter

CHRONICLE

New and Old Securities

;

Abitibi P. & P.

Brown Co. 5s, 1959

Says— SS®

Albany & Susquehanna R. R.
:

decline

So it

happened again.

than

that

the

weeks

been

telling

market

CAPITAL

@ mkt. to

STOCK 1

that

seems

this

with

out

come

Mimktn New

Broadway

York Sl«k Extkof*

keen

if to

STOCKS

last

observer

began
turning down. I wasn't happy
sitting way out on a limb. I
am,

had to crawl back.

caught
not

branch and

on a

either

move

back.

So I got

can¬

forward

forward,

move

the

branch
may
break; if
backward, I'll rip my pants.

It's

of I'll be damned

case

if I do and damned if I don't.
■//■

/; ❖

the

banes

this

of buying and sell¬
ing them,* for what we hope
will be profits,1 is the ever
present danger of being whipsawed.
That is just where I
business

leave

and

SEC Registration
The

SEC,

cation

nothing
660)

page

Bell

denying

the

Des Moines, Iowa, to

appli¬

Corp. of

withdraw its

as broker-dealer, re¬
registration and ex¬
pelled
the
corporation
from
membership in the National Asso¬
ciation of Securities Dealers, Inc.
The SEC charged that the cor¬

registration
the

voked

poration had, at a time when it
no
net capital employed in

had
its

business

substantial

broker,

sums

owed

various

cus¬

tomers, banks and other brokers,
and

had

the

caused

held

curities

sale

se¬

investment

controlled by it and hadi

company

the

borrowed

proceeds

notes

collateralized by stock of the cor¬

poration which was insolvent.
msm

Gets
:

Suspended Sentence

SEC

investigator,

securities.

Mr.

Gol-

counsel' indicated he would

; probably appeal.1

■
~
Defaulted RR Bond Index
The defaulted railroad bond in¬

Bust,

Pflugfelder,

Broadway,

Eampton

New

York

City, shows the following range
•for Jan.

New York

HAnover 2-09801

1-396

Montreal

Toronto

Cashier-Accountant

has been the

that

Available

for the renewed speculative interest in

reason

Thoroughly

growing^

the

N. Y. Stock Exchange.

Weekly Firm Changes
The New York Stock

has

Exchange
following

announcedthe

weekly firm cnanges: V 4//■*/ I
John L. Loeb, general partner
in Carl M. Loeb, Rhoades & Cov
New York

City, became a special
in the firm as of Jan. 1.

partner

The main office of Matheson &
Lauro

will

Wall Street,

New York City, effective Feb.
the office in Miami, Florida,

9th,
be¬
coming a branch in charge of a
resident partner.
:
v,,.///,./;,/
James M. Kerr, Jr., member of
the Exchange, and a partner in
Kerr
&
Armstrong, New ; York
City, died on Jan. 31st
William M. Newsom, partner in
Lawrence. Turnure & Co., New
York City, died on Feb. 1st
Glenn G. Munn and Francis W.

certainly receive either a
substantial cash payment for back
interest " or
materially
better
treatment in a revised reorgani¬

pal

Thus

turned

back

the

appeals court
basis of inadequate valu¬

ation data
now

(When Issued)

cations
this

;

Members

New

the ICC plan of reor¬
ganization, the first mortgage 5s
not to receive any allotment
new

from

fixed interest debt.

debt would/be
4s which

$10>00Q,000 of

for

par

The

basis.

par

1st

Towne, partner; ; in
Bright & Co., Boston,
Mass., died on Jam-30th, his in¬
terest in the firm ceasing as of
that date.

Interest

Saunders

Jan. 29th.
Interest of W. David Owen, de¬

ceased,

in Hornblower & Weeks,
of Jan. 31st.

Interest

Peter

bonds
The

mon.

securities

of the new
of

balance

would

in¬

new

preferred,

new

com¬

the

new

the RFC, the RCC and the

Even

from

aside

the

phenom¬
enal earnings rebound, the posi¬
tion of the 1st mortgage 5s has
been enhanced materially by the
rapid accumulation
cash

reserves.

large
Cash

ex¬

and

special deposits as of Nov. 30 ag¬
gregated $9,357,000, or approxi¬
mately two-thirds higher than a

in¬

activity

in.

this

area

large proportion of
plants will hardily be

new

$eace

economy.

connection, the sharp ex¬
pansion in steel mill capacity at
Provo, Utah, now under construc¬
tion, is significant. The mills are

Morris & Essex R. R.

not

LEROY A. STRASBUR6ER & CO

II WALL ST., NEW YORK
WHitehall

leave

Teletype:

substantial

balance.
If

3-34S0

1-2050

have been the construction of

extension in California to

plan is remanded to the

then

trustee's

basis

nection

debt

the

allocate at

new

tation

con¬

Northern

some

Denver's

years

Dotsero

Comprehensive rehabili¬
work

done

lines

Western

has

put the prop¬
erties in shape now to benefit in
full

1st

new

the

Pacific's

company,

20%

Great

completion

Cut-off.

least

the

ago

for payment
certificates.
On that
be used

it would

with

and

possible, with¬
increasing the proposed fixed

out

large share

movement

a
permanent accretion to the
road's/economy.
Other factors

ICC, and changes are made there¬
in,
it
is
possible
that
cash
would

westward

,.-

the

Pacific lines but

expected that

finished goods will be over these
lines.
This may be considered

cash

excess

Western

distributed

C. James Company.

cess

McDonnell,

the

and

qnd about 72%

deceased, in Davenport & Co.,
Richmond, Va., ceased, effective

ceased

than

come

among

Hobson,

90%

more,

would

the
receive
of

notable

in recent years
has been stimulated by

abandoned

for each

holders

army

In this

income 4%s, $600 in 5% pre¬

Paine, Webber & Co., with
headquarters in Detroit, Michigan,
died on Jan. 29th, on which date Under this plan
his interest in the firm ceased. ft4 present
1st
5s

been

industrial

war.

these

& Pacific R. R. Co.

mortgage 5s are to receive $400 in

$1,000 bona and accum¬
ulated interest to Jan. 1,
1939,
the effective date of the plan.

has
in

the

Chicago, Rock Island

the

■

crease

etc.,

and

1st

standing trustee's certificates
a

issues

war

the west coast

allotted to the out¬

are

all

part,
naturally
considerations,
has

establishment

There

trading

only fixed

equipments the

new

Chicago

net

indi¬

service area,
and to this extent is temporary.
Nevertheless, there is ample evi¬
dence found in pre-war traffic
performance of important basic
improvement in the company's

Exchange

markets

ferred- and 4.67 shares of common

Alden

Stock

status.

Aside

Wheeler retired from partnership

York

We maintain

are

Paine, Webber & Co. on Jan.
29th.
William S. Markle, partner

Nets

York

due

camps,

•4Under

are

let-down.

performance

been

•

such

Bear, Stearns & Co.

appealed to the Supreme

Court.

Box

Chronicle,

1941 weeks and there

will

decision

this

locate.

Spruce Street, New York, N. Y.

and

Free

Financial

Securities

perhaps both.
possibility of further

the

firm.

All,

Reozganization

zation proposal, and

delay in consummation of a re¬
organization holds ample com¬
pensation. // The Western Pacific
reorganization was the first to be

Now employed by munici¬

ties.

Railroad

will

bonds

both

experienced

municipal and corporate securi¬

the

almost

from

these

competitive im¬
These considerations
be considered perma¬

provements.

mortgage bonds to holders of the

old
1st 5s.
Either angle holds may also
nent factors.
interesting price potentialities.
As a measure of the conserva¬
Jan. 21th.
Augmenting the possibility of
year ago, and it is believed that
favorable
reorganization tive nature of the proposed re¬
this was increased in December. highly
Even under stress of the present developments, the road has turned organization, and an indication of
in the best operating performance the potential
earning power of
heavy traffic/ the road needs a
of any of the Class I roads com¬ the new securities, fixed charges
working
balance of
less than
were
proposed at $494,000 per
$2,000,000 cash.; There is an ex¬ manding any degree of public in¬
In comparison, average
As early as
1940 reve¬ annum.
cess" cash
balance of some $7,~ terest.
(Special to The Financial Chronicle)
nues pushed above the 1929 boom
earnings available for charges in
- • /
- 1
LOS
y
ANGELES, CALIF.—Ed¬ 500,000.
the 1931-1940 period amounted to
levels, and there was a further
ward F. Therieau has become as-;
The company last summer re¬
rise of 37.5% in gross last year. $1,233,000.
It is indicated that
sociated with Bankamerica Com¬ quested t court authority ' to
use
was
$4,464,000 available
Moreover, in the current year to there
pany,. 65Q
South Spring Street. $5,000,000 of the cash to retire
last year, equivalent, without tax
date
traffic
has
been
running
Mr. Therieau was .formerly man¬ half of the trustee's certificates,
more
than 50%
above the like adjustment, to more than $2.80 a
ager of the. trading department for! but. the petition was denied by
share on the proposed new com¬
Earbour, Smith & Co., and prior both the District Court and the
mon.
:
thereto was proprietor of Therieau Circuit Court of Appeals.
As brokers we invite inquiries
It was
on blocks or odd lots of
& Co. and was a partner in O'Neil held that the cash belonged to
& Cos
•.
v-/
the old 1st mortgage bondholders
SEABOARD A & B 4s/33
Irving Passarino Joins
as earnings on their new securi¬
Bds. Ctfs.
EJT
ties, to be distributed on consum¬
Wheaton & Roberts Staff
GA. & ALA. 5s/45 Bds.Ctfs.
mation of the plan// Accumulated

deceased,

New

York

McDonnell & Co.,
City,
ceased as of

W. G. McGiickin With

1, 1939, to date:

High—

•26%, low—14%, last—34%; /

Graham, Parsons Co,
(Sneclal

to The

'BOSTON,

Financial

MASS,

Criss McGuckin is

Chronicle)
—

now

on securities (exclusive
common) to. be received
by holders of the old 1st mortgage
5s are indicated at $90 per bond

William.

connected

the

end

of 1941.

This

equivalent to approximately oneGraham, Parsons & Co., 10 third of the
present market value.
Office
Square, Mr.
MqPayment of accumulations on the
^li^kin was formerly a partner in.
new income bonds and preferred
Williams and Southgate, which
stock would involve .an outlay of
recently merged with Graham,;
less
than
Parsons & Co,
$4,800,000,
and still
;
with

Post

SAN

6s / 33 Bds. Ctfs. 'v

h£w

(Special

GA.. CAR. NORTH/

earnings

•

rv-;

dex

One

Commission

tne

registered

SECURITIES

Teletype NY

.charges of offering for sale un¬

; den's

WILLIAM ST., N.

ST.
PAUL,
MINN.—A
sus¬
pended sentence and a fine of
$500 was given David Golden, a
former

1960 & Com.

5s,

plan of reorganization has to be reopened by

System Tele. NY 1-1158

Elmer

Revoked

Polk-Peterson

go up

may

with

(Continued

bearish

turn

the market

now,

now.

bonds

belief

One

year's low.

the

2-6600

Since 1855

world

what

prove

Minnesota & Ont. Paper

gage 5s, 1946. On relatively heavy volume these bonds have recently
advanced close to the 1941 high and are selling almost 100% above

Tel. REctor

GUARANTEED

NEW YORK

shaking intelligence than the
market,

.//

Bell Teletype—NY 1-310
SECURITIES

•

REORGANIZATION

; The outstanding performance of Western Pacific (in process of
reorganization under Section 77) from a traffic and earnings stand¬
point has been directing increasing attention toward the 1st Mort¬

Duloaln

120

was

did
'

New York

j/..//

RAILROAD

yield about 11.20%

Joseph Walkers Sons

you
look

sooner

■

RAILROAD

•

Bell

I even suggested buy¬
couple of stocks. But it

i ;•

Paper

5V^ 8> 1961. & Com.

wrong.

ing

HART SMITH & CO.

this

didn't

decided

;;// 61 Broadway

York Stock Exchange

Rensselaer & Saratoga R. R.

nothing or it went
Anyway the rails did. So
week

Members New

"•

.;•

200 Shares

good, and for two weeks the

last

PFLUGFELDER, BAMPTON & RUST
Telephone—DIgby 4-4933

market did
up.

Consolidated

For

two

Column has

Com. & Pfd.

WALTER WHYTE

yield about 9.40%

@ mkt. to

again

places
market in critical position.
Foreign and domestic news
partly responsible.
"Stops"
should not be ignored.
J .;■/ By

CAPITAL STOCK

•

Price

5s, 1953

Bonds & COD's

300 Shares

and

other divisional and leased

the

,•> r

specialists in rails
11 wall street

n.y.c.
Tel*

has
firm

ing.

co.
*

Financial

the

Chronicle) /.

CALIF.—Irvihg

become

associated

Wheaton

and

Roberts, Bank of America Builq-

request

1. h. roihchild &

Passarino

with

lines

->r

SEABOARD RAEROAD
Circular

to The

DIEGO,

Mr. Passarino was formerly

local manager for Fox, Castera

Co,
the

and

prior thereto served

same

Baker & Co.

capacity

for

ranging from 0.3%
r;

PRIMARY

MARKETS

West Indies

Sugar

Missouri-Kansas Pipe

Line

Fire Stocks
Inquiries invited in all
Unlisted Issues

Jlxclli.) Cu)tW<&C).
-Members
~

And

Netb

York

other

Stock

leading

1 WALL ST.

Laird, Bissell & Meeds
-

Exchange

120

Stock

York

New

Members

Exchange

BROADWAY, NEW YORK CITY

exchanges

Telephone: BArclay 7-3500

NEW YORK
Dlgby 4-2525

Telephone

Bell

1-1248-49

Teletype—NY

L. A. Oibbs, Manager Trading Department)

group,

rates

will

continue

expenses
is continuing but the to s,et
banks could meet it by increasing sion.,

take

limit

a
»

and

Gross

Chemical

Operating
(Expenses

$19,468,000

1941

Net

$11,501^000

1941

One

the

most

satisfactory

banking

trends for

stockholders

•and investors who wish!to be kept well informed is the trend among
•the larger banks toward more complete reports of earnings.

Possibly stimulated by New York State Banking Superintendent

White's suggestion that banks should furnish stockholders

ating data, two "old-line" New York institutions
1 the first time detailed income ac~<$>-

although

having

the

com¬
small

statistical

of INDIA, LIMITED

Fidelity-Phila* Trust Co.

services

Girard Trust Co.
Penna. Co. for Ins.

The

number

leading

income

risen

Lives etc.

New

Philadelphia National Bank

York institutions publishing com¬

plete

thus

have

Reserve
shown

also

member

1,461,000

Phila.

Transportation Co.

3-6s,

banks

2039

Pfd.

H.N.NASH CO.
......

available to stockholders by the
banks.

Why should earnings data be
'important? From an accounting
point of view, a statement of con¬
dition alone is only a "still" pic¬
ture as of a particular date of as¬
sets

and

liabilities

densed form.

•earnings"

very

con¬

Figuring "indicated

from

statements

'condition, by taking the net in-'
in capital funds and credit¬
dividends paid, -is a very

•crease

65.8

1941

15,241,000

4,445,000

10,795,000

3,866,000
7,247,000

9,895,000
3,501,000

Tr._

9,688,000

6,588,000

3,100,000

68.0

1941

20,833,000

13,515,000

7,318,000

Trust:

—

12,454,000

7,338,000

62.9

1941

7,220,000

4,539,000

2,680,000

4,354,000

2,760,000

61.2

4,307,000

2,411,000

1,895,000

and

4,153,000

2,336,000

Reserve

56.2

1,787,000

.....

Bank

conducts

banking

be the first

...

description

every

business

exchange

and

new

Act.

black

tric

another

out

the

•rising taxes and ' other costs are' ber of stockholders and the more
•making
stockholders
uncertain complex disposition of operating
about the future of dividends and earnings appear to justify fully
"causing them to ask bank man¬ the publication of the income ac¬
agement numerous questions, a count. It is to be hoped that other
•most effective way of reassuring leading banks will see fit to do
:

Incorporated

of the free- price structure. pany; in
Copper can be held nominally at and. an
12 cents though some producers
company, thanks in considerable
may be getting 17; farmers may part to North American,
whose
get some of their "parity price" latest move has been to clean
through bounties and subsidies! house and put in a new President,
instead of in the open market.
Wesley McAfee, who looks likely
Subsidies

hidden

those

consumers,

like: to
bring

Executorships

and

undertaken

Royal Bank of Scotland

be on the market.
biggest operating com¬
the Mississippi Valley
exceedingly
well - run

soon

may

also

%"•••

result, as the big signs
go out for the duration.
Upright
electric display signs also contain
(Continued from page 651)
:
a good deal of high-grade
metal.;
market; by opening or closing the
ration valve Washington can in¬
fluence • price without
resortto
North American's Union Elec¬

HEAD

OFFICE—Edinburgh
Manager

William

Total

L-

CHIEF

Charter 1727

Royal

General

the

number

Whyte
of

FOREIGN

offices,

258

DEPARTMENT

Bishopsgate, London, England

and

some

rationing

has

not

heretofore himself

seems

impression that was getting
of
seat-shortages.? Some

The real unplugged loophole in round
the Price Control Act is not in. people

weren't

bothering to

even

try; to get flight-transportation
when actually there was plenty.

farm

prices but in-tjbe wages of
labor; for there is still a surplus,
The container
companies
though a shrinking one, of farm;
products, but not of labor. The- won't be, hurt by the radical sim¬
War Labor Board is, in effect, the plification in containers to civil¬
price control authority for labor ians; they'll get more than an off¬
•.

The

eight banks which have? but it has yet to impose any eeilf!
'stockholder understanding of sUch published gross and net operating
ings.
: problems and
reducing the waste¬ earnings indicate total 1941 gross
ful number of similar inquiries of $92.8 million, compared with
There's still conflict in Wash^
; from, numerous
sources,
would operating expenses of $52.7 mil¬
ington
for 'Donald
Nelson
to
.be to publish an income account
lion, or a: rather thrifty operating
straighten out. For instance those;
•This information is all prepared ratio of only 56.7%.
The seven half-dozen
agencies with a finger
and available—it is just a ques¬ for which
comparable 1940 data in
sugar.
At least five agencies
tion of releasing it.
are available show a gain of
$4,i- have a finger in labor matters—
Some bankers feel that releas¬ 950,000, or 7 % in
gross earnings NLRB,
Wage & Hour Division;
ing gross earnings, for example, for 1941, a modest improvement
Conciliation Service; War Labor;
.would be misleading to.stockholdconsidering, the general 18% up¬
Bonrd, and the Labor Division of
ers in particular cases where the
turn
assets.
How¬ WPB. And
price control is twovery short-term policy on invest¬ ever, all of the seven participated
heeded
though
that's hardly
ments has reduced income from in the upturn in gross, with in¬
Nelson's
problem.
Contrariwise"
'investments. But stockholders in¬ creases
ranging from. 1% .to. 11%. Eastman's
Transportation Board
terested, in such data are hardly i
Operating expenses, however, and' the ICC seem to be doing-an.
likely to miss the point that gross rose at a somewhat faster
pace, efficient, fast, cooperative j ob. earnings and operating ratio are *n increase of
$4,095,000, or 10%.
-at
particular levels because of The rise in

Deposits

set-in container
services.

orders from

Just

£4,125,90S

r^_..._..«_«..£69,92l,933
Associated Bank

Williams

•..■•■■■

Deacon's

Bank,

Ltd. ;

Australia and New Zealand

BANK OF

NEW SOUTH WALES
(ESTABLISHED

Paid-Up

1817)

Capital

Reserve

Fund

Reserve

Liability of Prop,

£8,780,000
6,150,000
8,780,000

£23^710,000
Aggregate
Assets
Sept., 1941

the

£3,780,192

fund.

Reserve

responsible
good part for the more friendly
largely because Washington has attitude of the Treasury toward
been
slow % and
unprepared to investment bankers.
American
ration.
Airlines had to advertise to offset
followed price control it has been

Capital (fully paid)

of the stuff had to

of reserves ings" method of calculating earn¬
earnings,
and ings was probably more reflective
•treatment
of
recoveries
from of true earnings because of the
charge-offs.
Frequently, such a minor portion of earning assets
'method penalizes conservative in investments and more "nor¬
mal" charge-offs and recoveries.
banks.
Today, however, the large num¬
At this particular time, when
up

1942.

Zanzibar

and

Capital. ..£4,000,000
Capital
...£2,000,000
Fund
.£2,200,000

Paid-Up
The

Ceylon, Kenya

Burma,

Aden

56.0

ence

Bishopsgate,
E. C.

Subscribed

much-»needed improve¬
pre-war; ment in its public relations.
A
"food
stamp"; distribution,
are fair thumb-hand figure
on
last
growing, and come out of the. yeat'g earnings is $3 a share. And
Treasury.
< it serves a city, St. Louis, which
In fact, the free price system is lias the
coal, water, labor and—
thus, at least for the duration, fast most important—inland position
disintegrating
into
two-priced, for a vast increase in war plants.
management is most important, multi-priced, subsidized, or arti¬
there should be no objection to ficially
restricted or stimulated
Censorship begins to bind. More
releasing figures that * will con- markets and the function of price
more
manufacturers
stop
firtn the quality of management. is being taken over by fancy Gov¬ and
•
/
[ In the days before the numer¬ ernment bookkeeping.
! talking about their business1—in¬
ous
Suppose, for instance, that the cluding their production achieve¬
capital increases, reductions
ments. The sunlight of the "fun•in par values, mergers, and con¬ CCC sells some of its cotton to
disclosure" provisions of the '33
sequent growth in lists of stock¬ the Army, which has it fabri¬
Act is gradually going behind the
holders of the late '20s, bankers cated by a textile mill while re-<
clouds of censorship. An indus¬
could well justify the statement taining ownership, and then uses
trialist whom you know recently
Of condition as enough informa¬ up the product in battle.
What;
said too much at a press confer¬
tion for the public because the difference does the price make?

•from

stockholders about ability to ab¬
sorb
rise
in
costs,
promoting

26,

India,

Colony

62.9

7,114,000

1941

unsatisfactory method for stockholders to judge earning power,

profits, building
operating

Office:

64.9

19,793,000

Branches

Uganda

and

London,

67.4

1940

York Trust—

New

Head

Government

Colony

28.1

10,748,000

the

Kenya

29.2

13,761,000

Bankers

banks were mostly owned by a
be yanked out of the press forms
Price-control
may
soon
turn
relatively few large holders who
after the first editions.
to
be
little
more
than
a
could be given detailed informa¬ out
rationing.
Certainly
because of the wide differences in tion confidentially upon the ask¬ prelude, to
Miscellaneous.
John Fleek
including security profits in net ing. Then, too, "indicated earn¬ already it is a tip-off to it, and

ing

•

762,000

;;

part

disposition to
issue more complete earnings in¬
1421 Chestnut Street, Philadelphia
formation, although they do not
Phila. Phone
:
New York Phone
furnish gross earnings or sources
Locust 1477
HAnover 2-2260
of gross and types of expehses to
Teletype PH 257
stockholders. All of these banks,1
of course, furnish the Federal Re¬
shows that buying management
serve with detailed half-yearly
on
"sight unseen" is not always
"and yearly income statistics, but
reliable.
Good management1 re¬
regrettably these figures are pub¬
flects
itself
in
good
figures;
lished only in the aggregate for;
•the 16 banks and are not made granting .that the intangible of
individual

68.3

1940

Subsidies

Provident Trust Co.

eight, while the other
!eight of the 1(5 weekly reporting
Federal

54.7
58.5

769,000

1940

'-'v.
Manufacturers

the

has

account

8,399,000
5,208,000

1,654,000

1941

Trust

SUDAN

the

—

Corn Exchange NatT Bk. & Tr. Co.

with comparative income account
for the first time.
'

more oper¬

Irving

have published for

■

j number of stockholders, has also
•furnished

1940

Towns

Trusteeships

| count data. Another trust
pany,

•

1940

Nat'l.—____

First

Bank Stocks

principal

and

'S-

the

EGYPT

Street, E.

all

Branches

NATIONAL BANK

7,355,000

2,424,000
2,223,000

AGENCY

William

King

£3,000,000

Operating Ratio
(Expenses to Gross;

$7,967,000

10,160,000

12,563,000

NatT.1941
.

—

£3,000,000

...

59.1%

Operating

,(V Earnings

18,559,000
________

Commercial

;

finance follow:

help

.Earnings
Bankers Trust-

FUND

LONDON

and

further through carrying ! Comparative gross earnings, op¬
larger volume of Government se¬ erating expenses,; net operating
curities. Larger Governments ap¬
earnings and operating ratio of
pear necessary, to cover increased
above
referred
to,
expenses,
offset
possibly
de¬ the 'banks
loans

CAPITAL

FULLY PAID
RESERVE

•'

;

Cairo

large

volume expan¬

Commercial

Cairo

Office

Head

gross

creased

This Week

of EGYPT

with
money
probably continuing low, it
However,

reflects the

course

NATIONAL BANK

banks.,

rising amount of volume to produce a
tendency in expenses, especially given earnings improvement after
taxes..
higher taxes, so that size of capi¬
For 1942, this upward trend in tal .funds would ordinarily tend

and of
.

war V. effort.
War financing
•might indeed mean lengthened
^maturities and consequently bet*
ter investment earnings for the
extra
conservative "short-term"

5%.; ..The $he

however,
$885,000 (3%) gain in
net
operating * earnings,"1 which
meant that 18% of the year's gain
in gross was brought down to net.
This is a smaller proportion than
the operating ratio would allow
seven

"showed

.Merck & Co.*.

Christiana Securities

Hartford

<■

Thursday, February 12, 1942

THE COMMERCIAL & FINANCIAL CHRONICLE

654

30th
___£150,939,334

SIR ALFRED

DAVIDSON, K.B.E., 1
•:/, General Manager'
:.;//(•■

Head

Office:

George Street, SYDNEY•

The Bank of New South Wales is
and

the oldest,

largest bank in Australasia.
branches

870

all

States

With over

Australia,

New

Zealand, Fiji, Papua and New Guinea,

and

Lqndon, ,it

and

efficient

traders

and

•countries.

pffcrs the

franking

•;;

service

travellers

these

■" -v,

OFFICES:

Threadneedle Street,

complete -y
investors,.,

interested

■>•;

LONDON

most

E. C.

Berkeley Square, W. 1

the utilities

' /;

i; .Agency arrangements-with Banks
throughout the U. 8. A.

the

•
•

r-■■■ >■,

•

suffer by transfer of

may

power

from, residential to industrial use
so the oils may suffer by loss of

particularly attractive at current

fuels; for. diesels and heaters.

prices,

looks

though

economics

about to change from a branch of

metaphysics to.; what might
a 'moral science."

called

this

extra-conservatism

expenses

ma¬

turities.

This

Other bankers feel that figures
do not mean anything—it is man¬

agement

nately,

that

the

counts.

1929-1932

was

led

> net

mixed

Don't

also

general, ranging from 3% to 15%.
results

operating earnings —al¬
though four banks showed) gains
Unfortu- in net operating earnings of 1%
deflation, to 13%, three showed declines

New

think
York

because

you

live

Chicago where
there's electric
power
to- burn
that -you won't see power curbs,
Those
generators are
movable,
and they'll move.
A much dimmer Times Square will probably
or

Florida

municipal

bonds

seem

•according to a memo¬
just issued by Allen &
Co., -30 Broad Street, New York
City, since the stagnant condition
randum

the Florida

created

Fla. Bonds Attractive i:

gasoline, business and change in
cracking ratios; to lower-priced

bond

market

has

unwarranted

falling
prices.
Copies
of. the
memorandum, discussing in some
detail many- favorable points in
an

off

;

Interested. In Sugar?

Ananalysis

mated

the

Amalga¬

Sugar Company

prepared

•by .Edward L. Burton & Company.
160 South Main Street, Salt Lake

City, Utah, has just come off the
press.

Burton Company will send

copies of/this analysis or an an,

+v_

a*ysis

TT^v,

*he Utah-Idaho Sugar.

Company upon request.

the

situation, may be. had upon

request from the firm.

•

■

Allen & Co. 20 Years 013
Allen

Co., 30 Broad Street,

New York City, over-the-counter

recurity

dealers,

are

celebrating

the 20„th anniversary of the found¬

ing of the firm.

Volume 155

Number 4045

THE COMMERCIAL & FINANCIAL CHRONICLE

655

Oppose Treasury Plan
To Tax Tax-Exempts
The
of

New

York

Commerce

State

„„UNION BOND FUND "A"

xb:

Chamber

unanimously

attempt

.N.rOiN

is to

change

fact

for

The

re¬

bonds

rich

men"

were

when

the

that

have

years

only

been

invested

State and municipal securities.

Commenting
declaration"
gentnau

Secretary

Jan.

Feb.

our

the "startling

upon

Mor-

(referred

issue, page 573)
that
"it
is high
time
in
my opinion to tax the income o.
,

State

and

municipal securities—
not only the income from future
issues, but also the income from
those

issues

the report

outstanding,'"

now

said:

the

present

juic'urc

the Chamber has proceeded or
t'ce
assumption
that
ever:
American could rely on the re¬

peated

bath

assurances

from

the

Treasury and the President

the

United

would

States

immoral

that
tax

standing Federal, State

out

mu¬

nicipal bonds issued and bought
in good faith upon the under¬
standing of the Treasury am
-investors generally, that uncle"
existing law they were • taxexempt.

•

Pointing
out
that
Secretary
Morgenthau in his statement men¬
tioned only State and municipa
securities, the report asked: "Doe<
the
Secretary of the Treasury
that

mean

States

outstanding

Treasury

Unitec

ftax-exempts are

not to be taxed?

If so, then wha

becomes of his argument that such
bonds
are
'a
haven
for
rich
men'?"

The

have

Federal

these

tax

Governbonds

destroy the so-called "haven," or
else U. S. Government bonds will
be

privileged aver State and mu¬
nicipal, the report said, x The re¬
port further said:
'/:.Vwx;;)
The

Treasury

recognizes that

Department
to the pres¬

ent time all State and

bonds

municipal

been

have

regarded as
.immune from Federal taxation.
Millions of dollars of these se¬
curities

fin

have

reliance

rubngs,

been

upon

the

purchased
the-court's

Treasury's rulings

4
t

and the assurances of the Govthat,

ernment

curities

;

outstanding

would

not

se¬

taxed.

ii-/'

was

that

the/.matter

mere1 y involving fu-

one

ture issues and that the power
to da this was pending in the
courts. 'LI x

The report was signed by Wil¬
liam J. ScMeffelin, Jr., a$ Chair¬

George W. Bovemzer.
Charles B. Couchman, Cleveland
and

Dodge, P^er Grinpm, Otto E,

Reimer and Harold S. Sutton.

those

embraces

whose

industries

nanufacturing processes require,
>r
are
aided by control of tem¬
perature and
humidity — these

Hoysr^dt Recuperating

•Warren

Hoysradt,
Viceof Michigan

i The
and

National

all-out

xwar

■

York

City,

Hospital,

the

Bronxville,

valescing from
monia.

Wall Street, New

Lawrence

N. Y.,

attack of
,
,

http://fraser.stlouisfed.org/
A
Federal Reserve Bank of St. Louis

con¬

pneu¬

taxes

were

pay¬

then stated

company

would contest any such claim. For

the* 10: months

1941

covering

fluctuations

sidered

have

the

three

UND
PROSPECT

the

effort

country's

has: done

deal to increase the/"de¬
mand x for) Carrier's v equipment
great

Hhief

uses

items,
needs

for its air

Wholes

are

con¬

mentst air
and

other

war

speculative

JERSEY CITY

year

factories

solidated net earnings for the pre¬

working

bxv

-x

changed

was

from

one

ending Dec. 31 to Oct. 31. Conse¬
quently operations reported for
the 1941 fiscal year represent only
10

months' activities.- J Completed
and net sales: for that

level somewhatm
of

excess

1937, the largest

pany's history.

of those

in the

com¬

Income available

for fixed charges in the 10 months

pf 1941 of $1,266,000 was.by far
the largest and well exceeded the
^880,000 in the fuH. /1940 year
by a good margin, Fixed charges
earned

1941

period,

13.49. times

the

coverage

ceding

fiscal

solidated

net

;

6.74
: /

before

taxes,

the

year."

These

earnings

Income taxes.

are

the

1941

con¬

before
fiscal

consolidated earnings be¬
taxes, but after all other

year,

fore

•

American

Telephone

Annconda

stantial inventories in addition to
providing for

apparent

large increase in

conservative

ors.

y'v x,
the point

illustrate

invest-

further,

the

following tabulation has been
prepared to show the market con¬
trast

the

quotations for stocks

of 10 leading companies in 10 dif¬
ferent industries from the time of
Dunkirk

1940,

when

market

averages reached their lows for
that year, to the end of
January,
1942.
In this
period, the Dow
Jones Composite Average shows

hut

small

net change, the In¬
Average a decline of 2.4%
the offering price of Dividend
a

dustrial
and

____r—

Electric

United
U.

Daw

—13.3

——

28Vz

27 Vb
28%

—160

23%
39%

+ 48.4

1-—:

-——--—

3a3/<

Industrial

-j

—22.0
+ 21.7

109.11

—

37.38

.98

7--—

4.8

+ 23.6

52%

111-84
„37"-15

~r—-j

—tt——

—

311

43Vs

—

Averages J

38.4

—-42.5

r33Va
—1§

______

(N.

13%
127

146Vi

___————-—

Aircraft

Jones

Change
.—J 3.6'A

~r—

Steel—

1942

117%

23'/2

Montgomery Ward
Pennsylvania RR. ;
Standard Oil

Jan. 31,

1940
4 147Va
lavi

i.V

u,—

dn Pont —1———
General

jUne 10,

Edison

Consolidated

2.4

0.6

-h

1.05

7-1

j The fact that all of the fore¬
going stocks

have

been

the

ing

all

studied

part

serves

(Continued

to
on

the

period

unders^re
page

the

657)

Send f jr

Eeb..24 to vote on

the sinking fund

deb^.nture hoiders through an of-

change i(er

provisions

of t

the indenture.- According to latest ;

cash

and/or
.

serial
.

sinking

fund

the

directors

ever

year,

net

income

would around 943/4-951/4.

Distributing Agent

DULL, WKEATON & CO.Inc,

annually or 20% olf net, , -Traded' oVer th
counte
the
after all taxes, which- ■,
'
is higher. In the 1941 focal debentures are currently quoted
20%

Investors Fund, Inc.

may

receive authorize

earnings

Republic

notes

and/°r common shares m such

reports, the company will suggest amounts
the-

Prospectus

c,llKa„f.et,n5lot stockholders

portfolio of Dividend Shares dur¬

$60,000

these, the soundness of these
principles
becomes
increasingly

as.

———'

ing

necessity of maintaining sub¬

income return.

principles of well-managed invest¬
ment companies.
In times such

______

that

apparently is experienc¬
severe
cash drain due to

These features of diversification

; ,/;.••/

| Composite
including
interest,
Dividend Shares
amounted to roundly $1,125,000.,
Conforming to the junking fund
requirements,
then,
Carrier
is have amounted to about $103,000.
obligated to pay in 1942: $60,000 This change would result in a
plus $225.000,.", the latter repre¬ considerable saving to the com¬
senting- 20% of last year's con¬ pany during the current trying
solidated jnet
earnings
before period and, in the final analysis,taxes.
This totals to $285,000, or might be the best course to take
close ..to
14%
of the
principal as. far as the debenture holders
amount of debentures outstanding are concerned since their position
at Oct. 31, 1941.
is not being bettered so long as
cash is continually being depleted
/. Since the company, feels that
and the company has to take re¬
this combination of taxes, inven¬
course in constantly larger bank
tory needs and sinking fund re¬
loans.
Carrier intends to make
quirements is "unbearable," it is
some
sort of inducement to the

company
I the

cipal and

and constant supervision are basic

Low

X iv

charges,'

...

compared with

times in 1940.

est

conditioning

| During 1941, the. company's fis¬
cal

LOS ANGELES

the

first of June each year to pay into
the sinking fund >'20%
of con¬

634 SO. SPRING ST.

outstanding funded constantly, there are no assur¬ Shares a rise of 7.1%.
By con¬
debt,, the convertible 4V2s, 1948, ances of success. This procedure, trast, note the
extreme
diver¬
which were issued late in .1938!
gence- in quotations
for the 10
however," minimizes some of the
The
indenture of
these
deben¬ risks
and, if combined with ade- typical stocks:
tures /provides that Carrier
pay
CHANGE IN MARKE.T QUOTATIONS
Into, the sinking fund each month
June 10, 1940 Low to January 31, i942

ships, army canton-.
bases, aviation plants

orders.

MPAHY

EXCHA&S* PL.

and merchant

tors

HUGH W.

sole

$5,000 for purchase and/or retireGovernment •mentjVand in addition the com¬
concerned, are naval pany is obligated on or before the

insofar

EQUEST

is¬

emphasize

serve

re-r

com¬

long been

outside

category

call

listened
have

definite
most

mind

his

and

any

to be

correct

just

called

that

wanted

That

with

There

who
count

half

salesmen

ferred

his office.

into

salesmen

dozen

business.

into

track

several
stocks

have the

bonds

tempt

in¬

confidence.

which

million

aggre¬

dollars

allow anyone to

never

investor owned
large blocks of

hundred

several

would

the
pre¬

firm

one

his

this

and

gated

the

list, our friend was only
a fair share of the avail¬

getting
able

goodly

securities

he
at¬

thorough
supervisory
this large portfolio.

that

order

made

this

see

fellow; of all the
he is the only

know,

doesn't

who

always

try

something.
Instead he's
only one of the bunch who
always wants me to sell some¬
me

the

attempted to see this ac¬
but only a limited few had

entree

always

was

riding home with the client and
another
friend, v the
investor
turned to
his friend and said,

sell

investment portfolio included.
number

and

him.

see

patient effort and work he had
expended on this account. While

al¬

times for the months of

many

one

own

he had

one

attention

interview..
evening he left his client's

office
up

the

his

he got the

course

subject—his

every

about

$150,000 better
off.
He then told him that he
had another' suggestion to make
which he thought would turn out

brokers

a very

would

advice

his

been

"You

why he had

reasons

thing."
It

seems

his

knew
and

also

that

his

knew

friend

our

business

investment

salesman¬

He realized that here was

ship.

account that could best be ap¬

proached
himself

just

man—he

bond

sales¬

the fellow who said

was

Maybe

ought

"Double Reverse English."

You

serv¬

lifted

crowd—he

the

another

'em!"

"sell

advice.

out

wasn't

call

the basis of

upon

sound

and

ice

beat

can

advice

sound

manship.

combination

plus

clever

sales¬

approach to
Our

friend

tried

several

convince

occasions

this

investor

W. Clarke Financial

Counsel For WHIP

,M18

of 100.45 for 1 y4s.

recognition

telephone and reminded this very
busy executive that if he had

of the

They were all ited time, which the executive
sold privately • by the succesful could spare from his other
by industry of the opportun¬
duties,
ities afforded in the
South. > bidder
so
no
public reoffering for this purpose. Such being the
The outbreak of the war in
was made.
It appears that buyers way of human nature no amount
1939 found the area rounding
can
always be found for worth¬ of logic could persuade this in¬
while municipal flotations, not¬ vestor to give up his hit or miss
;^;out a decade of accelerating
industrial growth.
>
withstanding war developments or personal management of his port¬
folio.
There are people in this
1. About 48% of the nation's threats from Washington.
world who say, "I made it my¬
ail production and 36% of its oil
one

Our friend picked up the

price.

self made. No doubt, this was one

Although

of the

upon

working

individual accounts go. The
vidual
in question
was
a

side

sections

been

bids
and that such a large number of dif¬
awarded the issue to Clark, Dodge ferent
holdings should have more
& Co. of New York, on their bid attention and care than the lim¬

by these

contributors

had

salesman seemed to

Bids

markets

'CHICAGO,

ILL.

Clarke has been

—

John

appointed finan¬

cial counsel and adviser to Radio

WHIP.

Station
with

his

been

•

connection

Clarke

has

Vice-President

elected

and

duties

Mr..

Treasurer of the Hammond-Calu¬

Broadcasting

met

which

and

owns

Corporation,
operates this

•

capacity
of

are

South.

the

within the Major Sales
Scheduled

about 50% of the
country's bituminous coal.
3. It has the capacity to pro¬
about 25%

duce

electric power.
4. The

South has about 75%

mill spindles of

the active cotton

country.

produces about 60% of the

5. It

natural
It

gas.

bauxite

from

which

and

Jersey Tax

condition

was

New

Jersey

noted Monday

municipal finances

said

levies

tax

collections,

represented

last
in

year,

1940,

which

83.34%

contrast

assets and liabilities

said,

1939,

municipal

for

1941

and

Feb.

for

bonds

sale

was

12th

had

Jan.

ap¬

(Today)

rescinded

took place

scheduled

originally been
16,

and

recent sale of bonds

thirty-two

munici-

sense

case.

friend

our

of it my¬

care

such

would

did

what

dictate.

trying to convert this in¬
of thinking and
out on a plan to get as

vestor to his way

set

WHIP

station,1

5,000-watt

frequency of 1,520
kilocycles, with studios in Ham¬
mond, Indiana, and Chicago, Illi¬
nois.
They now have under con¬
operating

on a

struction

additional

facilities

•

enable them to broadcast 24 hours

day and plan to make this the
largest independent broadcasting
possibly
station in the United States.
could secure. After thinking over
! Mr. Clarke will continue to de¬
the
whole- problem
he
finally
vote his full time to the operation
came
upon this idea of "Reverse
of the general security business
English." He reasoned that all of
of John W. Clarke, Incorporated,
the various securities men, who
of

much

the

from

the

available

account

business

1941, but the offering
postponed,;
The most
on record for this city

in 1937.

friendly

were

this

investor

135 South La Salle Street.

always

trying, to sell him
something. He also realized that
out of the large portfolio already

were

NYSE Extends Privileges
Of War Service Members

held, that certain holdings woulo1
Feb.

This

16th

show

time to time

July,

1941,

Glore, Porgan & Co. of New
second
best
bid
was
entered

York.

The

district

awarded

bonds

Shields
New

jointlv

Co.,' and Kaiser & Co.,

York.

both of

leges

attention of his client and

York

might be made.
a

had

26th

time made

that

the city officials decide on

post-

market

conditions

Last sale of bonds took

place in

1939.

permit a firm whose member is in

different

Meanwhile

recommendations for

whose
of

alternate

the

number

to share

in the

bid. was
received.
New

also
The

com¬

transactions executed-

the Floor of the Exchange

another member or member firm.

mendations

turned

out

excep¬

This amendment was recently ex¬
tended

individual

member

began to take notice that he was

Ybrk. and
associates, entered the next highest offer.
Corp.

partner of a firm and the
latest action is designed to grant
to

member firm the same privi¬

The

lege.

awarded bonds lost August to a
syndicate headed by John Nuveen & Co. of
best

missions

thorough and careful and
the majority of his "sell" recom¬
very

city

Securities

service

war

getting some very profitable ad-

Feb. 25th

Chicago,

war

of Governors,

amended the commis¬

sion law of the Exchange so as to

sales

tionally well. Finally the investor not

$4,000,000 Tacoma, Wash.

Union

New

inJ

purchase during this time. He was

originally for
at

nonement.

January,

been scheduled

but

Board

the

hold¬

he made

$750,000 Alexandria, Va.

a year

the

month

last

Exchange

Stock

service,

members

half he did nothing but rec¬

ommend

ings in this portfolio.

Feb. 17th

Jan.

For about

sale

further extension of privi¬

they might be called

the recommendation of their

and

definite weakness and from

to the

^ernnd

impossible, Mr. Darbv

because

last

$975,000 Sheffield, Ala.

78.08%

Exact comparisons of

were

the
also

common

gave up

was

station.

radio
n

This

1940

sold

pended. v

This sale

Mr^Darby called particular at¬
to

for
are

runner-up

issue

Government, in

at the close of 1941.

tention

bidder

successful

the

$1,480,000 Hartford Co., Metro.

by Walter R. Darby, State Com¬
on

Dist., Conn.

missioner of Local

the

These

produces 100% of the naval

statement

the

take

can

This

Finally

municipal

produces 100% of the do¬

stores, 100% of the sulphur, 100%
of the carboh black, 100% of the
phosphate rock.

self."

herewith

list

important

names

the

self and I

offerings
($500,000 or over — short term
of the country's
issues
excluded), which are to
come up in the near future.
The

73.99% in 1938 and 71.51% in 1937.

cover

31% while that

Maryland Receives Many

ities

continuing

and

merely

increased

so,

In doing

of increasing

guaranteed debt of

of the United States

naturally

80.15%

prejudice
intended as a

During the depression the

Despite the fact that State and

"false cries which foster
are

advantage
States dropped

cials

municipalities

Pointing to the fact that Treas¬
records disclosed that only

the

other

South's

have

nancial

ury

the

1930 and 1940 with the result that

with

General improvement in the fi¬

Court

was

States, but that a tremen¬
change
occurred
between

dous

Collections Up

law."

the

municipal bonds generally joined

toward the industraliza-

the

nor

ob¬

are

and diversification which its

New

by Adminis¬

come

years

area

the

7. It

duly submitted to the people
and V adopted
by
them.
It

United

have

editors

the

through

many

hu¬

aluminum is made.

Corp.

for

and

natural

playing in the war.

Government,, it

constitutional

Com¬

merce," seeks to describe the vital

mestic

de¬

drastic

this is to

come

of the

survey

"Journal i of

York

New

municipal issues.

change

anual

South, published recently by the

the

future

committee's report

The

our

that

Canada

third

The

act

favor, according

United

2. It produces

described last week

was

by the Committee
the

Federal

For War

borders

The
attempt to levy
against
outstanding tax-exempt municipal

Securities

erased.

refining

Municipal Bond Tax
Proposal Assailed

definitely

net direct and

from

exemption

authoritative

had expressed their

States and by

The South Produces

opposition
to the representatives in Congress
from., their state.
-;T

ors

Canada's

capita debt of Canada
considerably
higher
than

years,

announced also

conference

that

surtaxes.

cludes

leaders

unconstitu¬

and

figures

per

pointed out.

tion

unsound

indication from

every

to
the
United
to only $30 and
evidently this has now been also

tional."

that

progress

pro¬

oppose

Measure

financially

The

served

stressed

posal of Federal Government
to
tax
State and municipal
bonds.

ion

man

of the Federal Government to tax

gram

low-

tax-exempt securities,

profitable business. We think

many

booklet issued by the Domin¬

issu¬

aided

Louisiana

Jones

Sam

advantage will

ing

;

capita debt at present is lower

borrowing through

ing bonds, it is also noted, does
depend on interpretations of
the Federal Revenue Act and in¬

homa, H. H. Adkins of Arkansas,
Paul
B.
Johnson of Mississippi
and

not

De¬
Gov¬

close of 1941,

the

reported.

in the Dominion's

C. Phillips of Okla¬

Leon

ernors

State

on-

obligations

it's worth retelling.
There
was
an
account

seven

which

con¬

large account
and thereby walked off with some

the end of the current fiscal year

was

efforts

one

available

low-cost housing, an

with

very

per

Federal tax exemption of hous¬

Exempts Bonds

sales

his

nection

municipal¬

dropped from sixteen in 1940 V

end

lobbying for states and cities."

Score

number

ities in default

cost

self-government
Wash¬

ington will have more 'parasites'

Governors

of the Act which

course

lish"

The

the

provide

the

1940.

There

hereafter

business.

conversation, he told us about
how he put some "Reverse Eng¬

than in the United

pose

of state government.

to End Tax

ties

palities failed to file reports last
year and fifty-nine failed to in

sion would contradict the pur¬

and municipalities," he

the

CHICAGO ILLINOIS

Housing Act
of 1937. To change this provi¬

aspects dominant over

in all

ury

•

1ST NAT BANK BLOC

and

the basket.

Canadian Debt Surveyed

Federal

the

Washington to make the Treas¬

the states

regarding

which

imposed by the United States"

its leaders is to
borrowing power

purpose

twist

glad

will

inquiry

obligation.

any

high
with

English." We would run under the basket, make a sudden
simultaneously twirl the ball in an opposite direction of
If properly accomplished, this was a sure shot and the
ball would neatly plump squarely<3>—vice.
Then an opportunity arose.
through the hoop.
The other evening we were dis¬ A certain block of stock owned
cussing certain things that bond by the investor, and which he had
salesmen talk about, with a friend previously
recommended , as
a
of ours, who is also in the securi¬ sale,
declined very sharply in

familiarity with these

exerting his strenuous

days when the writer was

"Reverse

RECrummer & Company

exempt from

all taxation "now

partment has added to proof that
the

specified

are

"Once

comprehensive

housing authority

bonds and interest from them

single hand."

them

bonds.

answer

Mr. Darby

local

All

"nine fountain pens all usable

•

concerned.

gives

the

efforts trying to become a first-string substitute on the village
school- basketball
team
we
made
our
first
acquaintance

quiries were touched off by the
recent speech of Henry Morgen-

Cohen

Mr.

issues

background

receiving further attention in

Back

long experience in handling Flori¬

municipal

bonds

authority

Housing
are

Bonds

Exempt Housing
Treasury succeeds in taxing
their bonds, Julius Henry Cohen, Attract Notice

the

MUNICIPAL BONDS

Gov¬

Federal

the

mentalities

sent

Feb. 28th

loting.

$526,000 Monroe, La.
This
sales

citv

has

recently.

not

negotiated

any

bond

the

amendment
membership

being

for bal¬

Approval of this proposal-

for individual members was
in these columns Jan.

noted,

8, page 113."

.yolume 155

Number 4045 \

THE COMMERCIAL & FINANCIAL CHRONICLE

Our Reporter's f g

Report
That issue has been
for

now

scheduled
back

weeks

some

for

has

because

and

offering

been

the fire

held

market

though
while

abeyance

the

$27,500,000 of ten and
fifteen-year debentures may be
brought forward with assurance
of

success

the

once

broad

Treasury's

business is finished.

6.5%

Bond

difficulty of individual
by professional in¬
vestment
management.
It
also
serves to indicate why those who

Series

stituted
Bond

and

for

National

8.3%.

Low-Priced

(Either

Income Series

combined

with

"New

Preferred

could be sub¬

York

Low-Priced

Series.)

CONFIDENCE...

even

have owned shares in

diversified,

investment

panies during recent
stated

aggregate distributions for next
periods on National Bond

quarterly

Stock Series

diversification

the

selection

management

conditions.

Presumably bankers now feel,
however, that the situation is such
that

1942)

four

Series

(Continued from page 655)
value
well

(Continued from First Page)

Investment Trusts

com¬

have
such in¬

years

frequently that
gave them more satis¬

vestments

faction with less

and tear

From

the

Letter"

published by Hugh W. Long & Co.
distributors of New

York

Stocks,

Manhattan Bond Fund and Fund¬
amental

Investors:

"Railroad stocks and bonds
tinue

AND

con¬

enjoy the center of the

nerves,
time
and
pocketbooks
than many other investments they

investment stage.
■
;
"On Jan. 21 the ICC granted the
carriers a 10% rise in passenger

have made.

fares.

wear

^
.

The railroads have also pe¬
for a
10%
increase
in

WITH people butthe United States and
grim of quiet determination

freight rates and it is inconceiv¬

Canada carry in their minds and hearts
the conviction of complete and final

the

titioned

Excess Reserves Watched
Investment

inclined

are

interests
to

keep

While

naturally
weather

eye on the trend of banks'

reserves in view of the

excess

the

employs
matter

Dividend

discussion

Shares
for

course

illustrative

this department wishes

purposes,
to

foregoing

point out that Dividend Shares

able that the attitude of the Com¬

mission
Even

will

change

Victory

overnight.

over

grant of 5% higher freight

rates will go

rather swift contraction which has

is not

proves

a long ways toward
meeting the recent wage increase.

been occurring in such balances.

the rule." It has been emphasized
here again
and again that the

"Then there's the probability of
much
heavier
freight
traffic

Only little

than

year

Jan. 1, 1940, such

ago, on

plus

steady and

sur¬

reserves stood

000,000

and

total

$14,000,000,000.

quirements,
Federal

mutual

ordered

with

now

000,000,
down

chance

reserves

balances

around

stock

looked at the other
the chances are two to one

way,

$3,300,000,-

that

Member banks' loans have risen
from $15,300,000,000 at the end of

$18,000,000,000 at the close

last

while

year,

increased

from

investments

$21,800,000,000 to

$25,500,000,000.

the

pected to

know

that

the

the indefi¬
been
to

ex¬

"There

..business

American

Utilities, brought on the
yesterday in the shape of
twenty-five

year

4V2S, was reported to be moving
along in satisfactory manner.
at '100

with

?J/z

issue naturally was attractive
dealers

even

though

involve
than

they

why

logical

and

of Ameri¬

without
a

defend

can

abilities

peer.

fruits

efforts

from

is-

now

fending
off,
and
eliminating, a pair of

finance

this

police

"The

owner

therefore
it

that

should

logically

Defense

some

see

Bonds

can

National

Securities & Research

income for

turning

show

funds,

presents a double
As one with investable

will

wish

lend

government, through

Here is the National

Securities

had

only

did

the

...

"Good

as-

Railroad
Stocks

that

Series

record

Bond Series

yield¬

to- maturity and estimated iJan.

American

SECURITY

1941

the Series advanced against a de¬
cline
in
both
the
Dow-Jones

Averages. In

From the 1941 Annual Report:—New Assurances issued

during the year: $187,041,959. Total Assurances in force:
$2,971,747,088. Benefits paid during the year: $88,312,394.

January the Series

almost doubled the gain of the
Dow-Jones Railroads!"
nas

From Dec.

Industrials

D-J

Railroads

declined

Dec. 31,

D-J

Industrials

D-J

Railroads

Dec.

Industrials
Railroads

RAIL

these

to Jan,

27,

1942

15.6%

2.2%

advanced.

24.9%

included

not

Chicago Bond Traders
CHICAGO,
War

richer

ILL. —The

Relief

the

Red

Fund, is

result

$237

voluntary

contributions

by
members
and
guests of the Bond Traders Club

Chicago at their annual dinner.
Assisting ably in the collection
J.

ceived

Smith

Ferebee,

who

re¬

splendid support from all

in attendance.
In

bers

addition
and

the

221

mem¬

Chicago guests, outof-town guests included:
'

•

Thomas

Co., Los
gustine,

Akin,
Angeles,

'•

•

Akin-Lambert

Cedar

waukee

J. S.

Co.,

of Minneapolis; Firmin D.
Fusz,
Jr., Fusz-Schmelzle & Co., St.
Louis,
W.
H.
Mo.;
Gardner,
J.
Arthur Warner &
Co., New
York City; Chester M. Glass, Jr.,
Bankamerica Co., San Francisco,
Calif.; O. Goshia, Collins, Norton
& Co., Toledo, Ohio; C. S. Hahn,
Scherck, Richter Co., St. Louis,
Mo.; J. C. Hecht, Butler-Huff &
Co. of California, Los Angeles,
Calif.; J. Hecht, Bendix, Luitweiler & Co.,
New York City;
J. J. Hunt, White, Weld & Co.,
New
York
C!ty;
J.
Lambick,
Friedman, Brokaw & Samish, St.
Louis, Mo.; E. L. Larson, De
Young, Larson & Tornga, Grand
Rapids,
Mich.;
H. A.
Lichtenberger, Freeport, 111.; C. Lipsky,
Bendix, Luitweiler & Co., New
.

York

the

United

States:

$377,239,983.)

Report apply to nearest branch

0.3%

figures).

Cross

31,

13.1%

declined

SERIES

Dec.

advanced____21.6%

advanced.

(Dividends

For copy of Annual

1941 to Jan. 27, 1942

1940

2.7%

declined;

31,

D-J
D-J

(Liabilities and other funds in

9.6%

advanced-—-.

RAIL SERIES

Receipts: $177,302,861. Total Assets

1941: $992,761,140. Total Liabilities: $961,313,800.

^..__15 4%

RAIL SERIES advanced

From

Total

81, 1940 to Dec. 31, 1941

Defense

North

SUN LIFE
OF CANADA

York

our

<4 SSURES

is—the

New

did much better!

quently developed into good gen¬
''Based
eral customers.
•
ing

Dow-Jones

Calif.; A. Au¬
Scott-Mclntyre & Co.,
Rapids, Iowa; Herbert H.
Current defense bond financing 2xk% to maturity) plus either the Blizzard, Herbert H. Blizzard &
is looked upon in banking circles National Bond Series or the Na¬ Co.,
Philadelphia;
Wm.
Perry
as
likely to yield returns in the tional Low-Priced Bond Series, to Brown, Newman, Brown & Co.,
way of new business after the war secure the required rate of return. New Orleans, La.; C. F. Bryan,
is over.
Spencer Trask & Co., New York
Proportion of Defense Savings Bond Series
G
and
National Bond
Scries of National
Investment
bankers
City; J. Dunn, Stifel, Nicolaus &
have
Low-Friced Bond Series to Produce Stated
Co., St. Louis, Mo.; R. E. Byrne,
their shoulder to the wheel in
Yields*
Edward D. Jones & Co., St. Louis,
this phase of war financing
Return
Defense Bonds
Bond Series
Mo.; J. Canavan, Rauscher, Pierce
and are confident that the net
3%
87%%
12%%
&
4% '
Co., Dallas, Tex.; R. Coffin,
result will be the making of
62%%
37%%
5%
37%%
Hornblower
&
62%% :
Weeks,
Detroit,
many new friends and poten¬
6%
12%%
87%%
Mich.; H. L. Coleman, H. O. Peet
tial future customers.
Low-Priced
& Co., Kansas City, Mo.; Chester
Defense Bonds
Bond Series
They recall the experiences of Return
de Willers, Schoonover, de Wil.4%
74%
26%
the
first
World
War's
Liberty
5%
lers & Co., New York City; R. D.
57%
43%
6%
Loan financing and how many of
40%
60%
Diehl, Fahey, Clark & Co., Cleve¬
7%
22%
78%
the buyers of those bonds subse¬
7 % %
land, Ohio; W. Donner, The Mil¬
14%
86%
-

loans

democracies.

greater net
because
of

ket!

was

rising."

Victory

the

Average out-per¬
1941.
but in January it showed a real
gain in a stagnant general mar¬

living expenses,

duty

way to meet this problem.
"Each
originally
investor can figure the per cent
planned a total offering of $15,of return on available funds that
160,000 to include $10,000,000^ of
he must have to meet living ex¬
first mortgage 3%s. But the deal
The following
was
revised to present propor- penses and taxes.
tables show
what proportion of
tions.
funds can be placed in Series G
For Filing Away
v
Defense Savings Bonds (yielding
company

will

that

entirely or to an appreci¬
able degree dependent on invest¬
patriotic

dual

companies in the National Defense and
mind

who *is

ment

Industrials during

ownership in Ameri¬
industry."

Corp. believes that "the investor

serves

for their savings have also made
possible the great investments of the life

Stock

are

put in the box where he keeps his

families. Their confidence

market leaders!

From

of Affiliated shares

maintain

purpose,

be little doubt

form the

the

because they know it

means of
ensuring future eco¬
security for themselves and their

their excellent excess profits tax
position and they've been consist¬

N. Y. S.

country

assurance

is the best
nomic

year.
seems

its

international

their life

earnings
this
year
higher rates, expanded traffic and

strong country

the

say

Railroad

and De¬

They

informed

any

job it is selling Defense Bonds.

are

over.

The

last

"There

ent

buying bonds, as possible. On the
other hand, living costs and taxes

something

mere

are

America

much to the

recognized that the marketing
would

industry

problem.

point selling commission, the
to

than

certificate of

The revised financing for Iowa

Priced

mechanisms

corporate
can

interested,-bank¬

Southern

better

reasons

resources,

ultimately

of those

some

two

industry

The

process

Southern Utilities

$5,000,000

done

field for investment.

"This

ing groups, it looks as though it
be held back until consider¬
ably further along in the Spring.

market

has

bandits.

may

Iowa

closely

of shares in Affiliated

are

bandits.

with

owner

own

two countries who continue

15%. Freight loading for the week
ended Jan. 17 were 15.3% higher

D-J

Now, according to
identified

that

investment company

and

delay until around the

month-end.

company

results

get

than two-thirds of the market.

re¬

now.

call for bids

veloped

will

resembling the "average" and he'll

opened next week. Then it de¬
faced

investment

"The

prospect, that of the Penn¬
sylvania Electric Co., embracing
$32,500,000 of thirty-year bonds
and $3,400,000 of preferred
stock,

seventy million people throughout these

In¬

step-up will be between 10% and

railroads

fense Bonds

cent

The company had

issue

optimistic.

"average."

the

Fund participates in a fund which
invests in American industry.

One of the biggest deals in

This will to win and to hold fast to their

Railroads predicts they'll haul
more than 1941.
Fitch is still

Lord, Abbett & Co.'s Abstracts:

Another Issue Delayed

stage, it develops

picks

well

10%

picks will not

Investment Company Briefs

requirement rate.

been delegated to

aigued,
might
be
expected
shortly to lower the reserve

nite

stock

can

"Not

In
pursuing
its
avowed
policy of keeping credit costs
easy, the Reserve Board, it is

has

three of picking a
does better
than
the

that

"average,"

are

000.

1940 to

can

only one stock in three,
probably of only an even
smaller proportion of investors.
Though the investor has about

$13,145,-

excess

that

one

total

Poor's

year.

the enemies of freedom.

chosen way of life is reflected by nearly

conservatively at between 6V2%
to 8%.
The Association of Ameri¬

and

the

banks at

throughout the

vestment Service has estimated

said

Board, the
aggregate has slipped steadily
until

companies

results—something

re¬

Reserve

of member

investment

singly or as a group are able
regularly to achieve "average"

Meanwhile,

due partly to the boost in

exception that

taken

at $6,600,-

reserves

"the

657

Milwaukee,

City; W. Lewis, BigelowInc., Minneapolis; Charles
Lob, Weil & Co., New Orleans,
La.; B. Ludington,. Watling,
Lerchen & Co., Detroit, Mich.; C.
J. Maender, Gatch Bros., Jordan
& McKinney, St. Louis, Mo.; J.
Masek,
Charles
A.
Fuller
Co.,
Minneapolis; M. Macrury, Paine,
Webber & Co., Milwaukee, Wis.;
L. McElhiney, The Milwaukee Co.;
Fred Morton, The Milwaukee Co.,
Milwaukee, Wis.; C. Y. Murphy,
Mackubin, Legg & Co., New York
City; E. E. Parsons, Wm. J^MerWebb,

Campbell, McCarty & Co., Detroit,
Mich.; Betram Smith, Ernst & Co.,
New

York

City; W. P. Space,
Co.,
Minneapolis,
Minn.; W. W. Stebbins, The Wis¬
consin Co., Milwaukee,
Wis.; Carl
Stolle, G. A. Saxton & Co., New
York City; J. F. Tegeler,
Dempsey-Tegeler & Co., St. Louis, Mo.;
R. W. Thornburgh, W, E. Thornburgh & Co., Cincinnati, Ohio;
H.
Tornga, DeYoung, Larson &
Tornga, Grand Rapids, Mich.; G.
Vonier, Paine Webber & Co. Mil¬
waukee, Wis.; R. A. Walsh, Dempsey-Tegeler & Co., St. Louis, Mo.;
Harry G. Williams, Quail & Co.,
Thrall

West

Davenport, Iowa; M. Reincke, The
Wisconsin Co.,
Milwaukee, Wis;
Norman
Cole,
Ledogar-Horner
Co., Cleveland, Ohio; J. M. Russell,
Gillis, Russell & Co., Cleveland,
Ohio; Otto Koch, Loewi & Co.,
Milwaukee, Wis.; W. H. R. Jarvis,
First
Boston
Corp., New York
City; A. E. C. Oxley, Dominion
Securities Corp., New York City;
Ernest

Kosek,

Ernest

Kosek

Co.,
Cedar Rapids, Iowa;
Prastka,
Ernest
Kosek
&

Lud

Co.,

Cedar Rapids, Iowa; Walter Engman,

Murdoch,

Dearth

White,

St.

Louis,
Mo.;
Peter
Cooper,
Loewi & Co., Milwaukee, "Wis.; L.
A. Strader, Scott, Horner &
Mason,

Lynchburg, Va.; C. H. Babcock,
Co., Cleveland, Ohio; A. Piper, Jaffray & Hopwood, Minne¬
Patek, Paine, Webber & Co., Mil¬ apolis, Minn.; James Musson, B. J.
Van Ingen & Co.. New York City;
waukee, Wis.; T. Peltori;' WellsDickey & Co., Minneapolis, Minn.; and R. Spraks, Harris, Upham &
E. Price, E. W. Price & Co., Kan¬ Co., Kansas City, Mo.
icka

City,Mo.; R. Rada, Paine, Web¬
Milwaukee, Wis.; R. M.
Rice, R. M. Rice & Co., Minneap¬
olis, Minn.; Stanley Roggenburg,
Roggenburg & Co., N. Y. C.; Joseoh
Wis.; w. P.ener, M^ckubm, Legs & Co.,
sas

ber & Co.,

FinrudrFirst National Bank Baltimore,

Md.;

Shannon,

Wasson
CARTHAGE,
W. Wasson is
eral

fices

securities
at

405

Opens
N.

Y.—Thomas

engaging in
business

State

gen¬

from

Street.

of¬

THE COMMERCIAL & FINANCIAL CHRONICLE

o58

aA:

resources

their

ized to resist the ambitions of the

Curb.

require

would

much
for a

particular case; and as the inter¬
would,

est

would

among
necessary
to

cases,

vary

organize

If you knew the
amount of work which had to be
each

for

some

and

must be completed on
- of
the Exchange - at
A the Post where the stock ; is
dealt in.' The handling of The
Floor end of the business, on
ferings

NYSE Facilities For

Special Offerings

that

whose conception

case.

uniting

Henry G. Riter 3rd, Riter & Co.,
Chairman of District No. 13 Com^

following committees:
Uniform
Frank

Department
of Member Firms and inquiries
with regard thereto should be
A directed to Mr. Coyle or Mr.
of

Kuver

departments

valno jAAth$ /essential fuhctiohst
of raising new capital) of service

Exchange

that

-believes

trading in its securities is unde- to the investor by intimate con¬
sirable because if causes unrelia¬ tact, of« ability to create invest¬
ble markets, or discourages con¬ ment demand for large blocks of
tinuous
retail
distribution,
or securities, and of promoting sta¬
creates
irresponsible ownership, bility and responsible ownership,
or
otherwise does damage, the we find
them lacking in these

such

where

contend that when a company or

blocks,

conditions,

rent

under

cannot

Offerings-

Special

the nature of

:
:

ket

within

and at

■

are,

A Quotations Committee:
C.

taken

action

securities

tional

out

enable

exchange

try

New

of special offerings.

system

The

cur¬

mar¬

which

solicitation

relates

Lord,

considerable

advise

only

and

expense,

Exchange

have the order go to an

whose

information, has
whose
emphasis is on price.
The in¬
vestor, unfortunately for his own
interest, is price-minded.
He is
willing to buy at wholesale, if he
gets retail service. The published
price of a single sale on the Curb,

emphasis
to

compete with

while
real

not

an agency

may

amounts at

changes. In the meantime, all we
are
asking is that Congress re¬
frain from granting to the New
York Curb Exchange another ad¬
vantage

distributing

the

over

dealers, by refusing to enact the

ruin the effort

Exchange-proposed proxy amend¬
amendment

ment unless our

fair price.

A;a/T realize that these unfortunate
facts alone would not determine
the action of Congress,

competition with the Ex¬

labor in

of the distributor to sell substan¬
tial

dealers are

distributing

agency

barrassments under which we now

truly indicative of the

market,

recognize

best adapted to the
purposes
of the Securities Act.
When this is recognized, we will
be relieved of some of the em¬

member who has done nothing to
deserve it. The distributor,

the

that
the

eventually

must

sion

successive of¬

trading
is also enacted."

eges

con¬

privil¬

unlisted

cerning

Seeks To Void Expulsion

interest opposed to
ours.
Therefore, I seek the firm¬
est ground to show you why it is

filed

in the public

seeking

interest that the dis¬

dealers

should

not

sacrificed to the ambitions of the

Exchanges.
"If

consider

you

conditions

whiAh

Acts

were

think

A,:-oA;AA.,.v;;

—

you

wiU

'■

financial

the
the

designed

Securities

agree

correct,
that the

principal objectives are to curb
speculation, to prevent the circu¬
lation

cf false and misleading in¬

formation.

encourage

intelli¬

gent decisions bv investors, and to
promote stability 'in prices and
responsible ownership.
Reason¬
ing
fmm
these
premises, and
realizing

that

passing

law

only the beginning of a desirable

reform,

one

naturally

consider what kind of

organism
into

comes
a

business

is required for putting

practical effect the intent of

Congress.
"The
"

thes*1

such
con¬

stitute the kind of business agency
best designed

tives

the

to attain the objec¬
Securities

Acts.

has

McCormack

Edward

may

not, while his Special Offering
is open,
same

tion

offer

stock

any

A will

Transfer

Tax

Committee:

Oliver

Troster, Chairman, Hoit, Rose
& Troster,,New Yprk; Russell V.
Adams, Adams & Mueller, New-;,

ark, N. J,; Frederic W. Q. Birtwell,
Stone
&
Webster
and
Blociget, Incorporated, New York;
Edward J. Costello, First Boston
Corp., New York; P. Fred Fox,
P. F. Fox &

Co.., New York; Eu¬
G. Grabenstatter, Truboe
&
Co., Buffalo, N. Y.;
Gustave Levy, Goldman, Sachs &
Co., New York; Robert S. Morris, Robert S. Morris & Co.: Hartford, iConn.; Alvin H. Turton,
Frederic
II. Hatch &
Co..
Inc.,
New
York;
William
FA Walsh,
Jackson & Curtis, New York.
gene L.
Collins

New
duct

York

City

Committee:

A
A
;

:
;

Business Con- A
G. Riter

Henry

3rd, Chairman, Riter & Co., New
York; Harry W. Beebe, Harriman,

compen-

any

-j any special commission,

Ripley .& Co.r Inc.,„ New York;
Frank Dunne, Dunne .& Co., New
York; -Irving
D.
Fish,
Smith, (

will be

Barney & Co^, New York; Gail i
on the tape when the:
offering is made and when any Golliday, Bonbright & Company, v
transaction is executed in .the New York; Charles F. Hazelwood, •
course
of the offering.
Con- E. H.- Rollins & Sons, Inc., New A.

{ disclosed
r

A
?

Commissions earned by mem¬
bers and member firms in

receive

A sation from his customer, n The
terms of the offering, including

shares of the

market,

not

Co., Inc., New
Pinney, • Graig-

Special New York State Stock

the regular auc¬

Davis,
York;

con-

v! firmations to the customer will York; Richard C, Rice. J. K. Rice, 1
with Special Offerings
j likewise disclose , the special Jr. & Co., New York; Meyer Wil- not be split or shared with
j commission. /Copies of plans lett, Bristol & Willett, New York.
registered employees. CompenA which become effective will be ■f A
mm
—
sation to registered emoloyees
i on file with the Commission
for such business, as in the case
,{" and will be available for public
of all listed commission busi¬
A insoection. : A/--"■
A/.'' 'A'A..
ness, must be in the form of a
A; The exemption will be availfixed salary, as provided in Rule
A;: able to any national securities
436, page E-262 of the Directory
PHILADELPHIA, •• PA. — John.
exchange
which
presents
a
and
Gmde, and paragraph 2,
,A plan
contain^g V aopronr>ate S. Costa has become associated
page E-287.
safeguards.
The Commission with A./Webster Dougherty &
Rules
490-497
areA intended
A wdl not declare any plan to be Co.j 1421 Chestnut Street." Mr.
primarily to provide for Special ;
Costa in the past was in charge
/ effective for the purposes of the
Offerings on an agency basis by
rule if the plan is contrary to of the municipal department of
members, or member firms, in
the public interest or is likely the local office of Bancamericabehalf of their non-member cus¬
and 'priqr
to be detrimental to investors.. Blair - ^ Corporation
tomers.
However, the rules do A
The Commission emphasized thereto was manager of the bond.
not prohibit an Offering by a
that the fact that it declares a department for A. C. Wood, Jr.,A
member or member firm for his 1
& Co.
plan to be effective dqes not
:A/A-\>
' \>
or
its own account.
On such
constitute annroval of the plan.
Offerings, purchases by custom¬
A? It also emphasized that it reers of the offeror must be con¬
A. garded the exemption - as < exr.ection
may

John S. Costa Joins A/

A.Websler

Dougherty

the

suit

Court

Supreme

to void his expulsion as
member of the New York Curb

Exchange and to restrain the Ex¬

change from transferring or sell¬

membership.

his

ing

Cormack had

Mr.

Mc¬

been expelled from

membership

regular

the

Ex¬

change last March on charges of

fees
or
commissions
earned
by him with a former
telephone-order clerk for bus»ness
procured for him.
In his
suit, which names George P, Rea,

splitting

President of the New York Curb,

defendant

and

seeks

$7,500

firmed

Rule

490

limitation

principal basis.

-r

Offerings, except in special cir¬
cumstances.
Such an exception

might be

Special Offering of a

stock located at Post

30.

bers

"biased"

were

against

him,

other members having split com¬

missions,
tigation,
In

nroved bv an inves¬
without
action
being

against them.
a
recent
report

the Depart¬
ment of Member Firms and of

with

the

staffs

Securities

and

Exchange

SEC

ant

had

not

been "suspected of com¬
splitb'ng
prior
to
the
Commission's investigation."

not

that

even

mission

Mr.

McCormack

odd

B. J. Van

effected

pursu¬

Special Offerings shall
stop-orders or open
lot orders for execution in

—

II. 1

Newburger, Loeb Branch
Newburger, Loeb &
bers of the

New York

Co.,

Lilienthal

ciate; manager
office

New York City.

*is

Mil "'Ml

—

Morris Schetrk, Richter Co.
(Special to The Financial
Chronicle*
Hirsch,

Madison

{

asso¬

now

LOUIS,

MO.-^-Herman

now

Scherck, Rmhter

Avenue,
..

ST.

Brocksmith is

branch

their
~

•.

Stock Ex¬ Herman Brocksnrtih With

Benjamin, formerly with

elect

them.

Co., mem¬

that

announce

regular auction market.
Purchases against Special Of-

Ingen & Co.

I
of six months no- •
Street, New York City, ^
A le^s the Commission otherwise William
announce
that Edwin F. Kezer,-.:
.determines.
,•
A.v , >
".
:.v
V formerly with Outwater & Wells,"
as manager
of the municipal de¬
Benjamin To Manage /
partment, is now associated with
B. J.:, Van Ingen & Co., l ac., 57

;

the

stated

pointed

and

limited period

change,

Commission.
Transactions

the

E. F. Kezer Is With

perimental .only

places a
general a, out that the exemption, by its
the size of Special
-terms, will be oneicatiye for a

Stabilizing ooerations in con¬
damages, Mr. McCormack charged A
nection with Special Offerings
that the Curb's action against him
must be discussed in advance
had been brought because mem¬

taken

distributing dealers,
for whom I speak,

offeror

Edward
New

Curtis,

•

if it should

find the public

tributing

(d),

J,
.

dler & Co., New York.

improving the market for some
Rules providing

of its securities.

It should be noted that, under

492

Richard
K,

myle, Rogers & Co., New York;
Percival J. Steindler, P. J. Stein-

urged this exemption as a means

ferings of the same security by
the same offeror, and offerings
on
an
"all-or-none" basis, will

I Rule

Abbott &
Alexander

York;

purchases on an Exchange.
Tne
New York Stock Exchange had

information

York;

Jackson

the Commission Louis A. Gibbs, Laird, Bissell &
consisted in providing a
condi¬
Meeds, New York; O. D. Griffin,:
tional exemption to Rule X-10B-2

with

Chairman,

action/of

securities

its

Rice,

Rice,
Jr., .& Co., New York; Frederick
Barton, Eastman, Dillon & Co.,

na¬

any

for "special offerings" to be made
by refusing to list essentials.
not be permitted.
through the facilit.es of the Ex¬
on
any Exchange,
"The conflict, in interest between A
The offeror in a Special Ofchange were adopted by its Board
should be able to prevent trading the distributing dealers and the
; fering
must be the owner (as of Governors on Jan. 29.
Tne
on all Exchanges.
Exchanges, out of which arises this •J defined in paragraph 5 on page
SEC in making known on Feb. t
"The present situation with re¬ and
other
arguments, is fund¬
E-460
of
the
Directory
and the Commission's action said:
spect to unlisted trading, accord¬ amentally a conflict between two
Guide) of the entire block of
{•'
Tne plan presented by the
ing to our view, is unfair to the opposed
economic philosophies. A stock offered.
New York Stock Exchange pro¬
distributing dealers and to the The interest of the distributor, as
A/ A Special Offering must revides that these special offerissuers of securities; and it would opposed to the Exchange interest,
main good for three consecutive
be
j ings may be made only when it
aggravated
greatly by the lies in emphasis upon merit in¬
hours
of trading on the Ex¬ A
is determined that the auction
adoption
of the Exchange-pro¬ stead of market, and upon infor¬
change.
Thus, if a Special Of¬ V market on the floor of the Exposed proxy amendment. When a mation more than upon price; in
fering is announced on the tape :r
change can not, within a reasonsecurity is listed on an Exchange, investment as against speculation; ;
| at 2 o'clock in the afternoon, i able time and at a reasonable
or
admitted to unlisted trading in stability more than in activity;
it must remain good until 12
pr ce, absorb a particular block
privileges the distributor is em¬ in the long term more than in the
o'clock of the following1 trading
of stock.
Under one of the pro¬
barrassed in his dealings in it. He quick turn; in local leadership as
session, unless the entire block
visions of the plan a
person
may
make a better market than opposed to centralized economic
is sold in the meantime.
] making such an offering is perthe Exchange; but the Exchange,
power; and in responsible owner¬
Orders accumulated after the
/ mitted to pay a special com¬
because
people
are
market- ship of securities, instead of the
close shall be completed on the
mission to the broker for the
minded, gets its principal adver¬ 'poker-chip' idea of ownership.
Floor of the Exchange at the
purchasing
customer.
Under
tising for nothing. Frequently, the
"I have always believed that the
opening of the next market ses¬
such circumstances the broker
distributor provides the investor Securities and
Exchange Commis¬
sion.

management,

New York, N. Y.;
Bernstein, Jr., Carl

innovation and

Tne SEC announced that it had

reasonable/time
reasonable price.
or

Inc.,

Co.,

Theouore

Offering System Trial

"Piecemeal"

Dunne

SEC Permits Exchanges

readily

| be absorbed in the auction

Chairman,

& Co., New York, N. Y.; Robert
L, Osswalt, Vice-Chairman, Blyeh

issuer

Committee:

Practice

Dunne,

Loeb, Rhoades & Co., New
York,"' Eaward J, Costello, First
experiment, the Exchange will Boston Corp., New York; James
welcome
any
suggestions
or Currie, Jr., Hoit, Rose & Troster,
criticism which may be in fur- New York/Herbert M. May, Her¬
therance of the objectives of bert M. May & Co/ New York;
these rules,
Reginald Martine, Harriman, Rip¬
/.
.
ley & Co., Inc., New York; Paul
M.- Strieffler, Riter & Co., New
York; - Robert
Strauss,
Strauss
Bros., New York, At - ',
As

/•v

the

that

Dealers,

the

nounces

regular
commission
A '
A \A>
./:
'
A//Rules 490 to 497 will be ad¬

Association of
Inc.,
an¬
appointment of the

Securities

orders:

ministered

National

mittee,

case

dealers behind
margin of profit.
ment of its Rule X-10B-2, so as
the simple proposition which. I
; /'The
reliable distributor pro¬ to exempt from the restrictions
am
now
presenting, you would vides the essential elements of a
of that rule "Special Offerings"
realize
the
hopelesssituation sound and stable financial econ¬
made pursuant lo a plan which
which ; adoption
of the proxy omy, He lives, usually, in close
has been declared effective by the
amendment, exactly as proposed /contact With his customers.
He Commission.
He added that the
by the Exchanges, would create provides the customer with in¬
rules
will become *; effective on
.for thousands of distributing deal¬ formation and helps him to use
Feb. 16 subject to the prior order
ers all over the country.
it sensibly.
The distributor's in¬ of the SEC, declaring the plan em¬
/'For the reasori just stated, and terest lies in stability and sound
bodied in the rules to be effective.
for j other reasons which follow,
investment, and not in activity In his explanation of the policy
we oppose the Exchange-proposed
and speculation.
He seeks the regarding "Special Offerings," Mr.
proxy amendment, unless suppler ^customer who buys securities to
Schram further said:
!
mented by our amendment, which keep and not to kick around, His
f;
It is not the purpose of these
wQuld prevent in future the grant¬ method of continuous distribution
| rules to supersede the auction
ing of unlisted privileges to any affords the only sound basis for
market
or
supplant approved
Exchange, excepting in securities stable markets.: He creates the
A secondary distributions, 'but. to
fully listed by application of the demand which assures stability
provide means for the handling
issuer upon some Exchange.
and salability.
•
A; ?' ;
of blocks of listed stocks through
"Expressed- from: the; broader
"Exchanges * have
virtues,
of
the facilities of the Exchange,
viewpoint of {public- interest,' we course.
But if we. appraise their
done

/Appoints Committees

purchase or the of¬
fering side, may be entrusted
to a Floor broker or specialist
in the same manner as in the
the

either

retail

fair

NASD District No. 13

A the '.Floor

Emil Schram, President of the
profit reflects an New York Stock
Exchange, an¬
exaggerated notion of the value nounced that the Board of Gov¬
of tneir services.
Under existing
ernors
of the Exchange adopted
laws, it is perhaps too easy to get on Jan. 29 rules providing for
into the business.
These defects,
"special offerings" to A be made
however, can be remedied.
The through the facilities of the Ex¬
great part of the business volume
change. Mr. Schram explains that
of the distributing dealers is done
the Securities and Exchange Com¬
by responsible firms on a fair mission has announced the amend¬

(Continued from First Page)

time and money to organize

commitments,

are

mere

dis^

some

are

dealers whose financial
are small in proportion

tributing

Beater A

there

that

grant

Urges Protection For

Thursday, February 12, 1942

;;

;

dreth Building.

associated with;

Company, Lant

Volume

Bond Club Of
!

Elects 1941 Officers
CHICAGO, ILL.—At its annual

meeting, the

Bond

elected

Club

Edward

of Chi¬

George,
Co.,
Inc.,
^President to succeed Ralph Chap¬
man,
Farwell, Chapman & Co.,
cago

Harriman

Ripley

who will become

ensuing
Charles

director for the

Charles K. Morris,
K. Morris & Co., Inc., was
named Secretary, and George H.
Willis, First Boston Corp., Treas¬
year.

urer.
i

Eugene Hotchkiss, Blair, Bonner
The North¬
ern
Trust Co.; Paul L. Mullaney,
Mullaney Ross & Co.; J. Sanford
Otis, Central Republic Co., and
Reno
H.
Petersen, The Illinois
Company of Chicago, were named
& Co., J. H. Maxwell,

directors.
\

quirements,

in favor of

ner

the

the Red

Cross

regular meeting held
approved

report form to be
by management investment

The

Company

Act of

form, known

new

which

Form

N-30A-1, will largely sup¬
plant Forms 15-K, 17-K and 2MD
under
the
Securities
Exchange
Act.
It is the first periodic re¬
form

port

the

The

SEC

date,

the information originally
supplied by each management
investment company in its reg¬
istration

statement

Prior

Form

drafts

N-30A-1,

submitted

all

were

members

their municipal de¬
Mr. Dodson for a num¬

sentatives of the National Asso¬

connected with

panies, as well as with officials
of individual companies.

supervise

Newton, Abbe & Co.

which

against

The form is

proximately
investment

CHICAGO,
Hammill
its

offices

ILL.

Co.

Building

has

the

and

suite

510

The

Co.

branch

continued

.firm's

new

heretofore.

X-13A-2

with

'formed

offices

Tower,

Bank

coln

'firm

and Sidney

the

Foelber,

Eugene

are

B. Patter-

Citizens

sales

The

;in

will

department

with

Savannah

National

Southern

offices

other

and

Atlanta,

Georgia cit¬

ies, has been elected

Chief

Federal

member of

the

Federal

Reserve

Bank of Atlanta from 1928 to 1933,
and

under

X-15D-2

O'Brien

member of the Federal Ad¬

■

Act.

was

Columbia.

the

Committee

sworn

director

Held

O'Brien

elevation

Judgeship.

the

was

issue of Feb..5,

stitute

SEC

local

forum
and

Board of Directors of the General

its

{Electric Co., will head the. Indus¬

trial Branches in the Division of
'►Industry

Operations

IProduction
nounced

| J.
i

Board,

Jan.

Knowlson,

National

an¬

was

Director of the
•

indicated

569. |

page

made

John

February,'■•' 1941, Mr. Reed
Senior Consultant in the
Division

the

Office

Management,

Production

}of

and

;in July became Deputy Director

|of t^e Industrial Subdivision of
?the Priorities

Division.

Later he

[was

appointed"Deputy Director of

!the

Materials

I Jan. 1, 1942, he

i assistant
in

Division,
was

and

Atlanta

new

to the Directors General

position

Christian

American

many

appears

America

the

cities

released

Jan.

24.

indicating

this

the

Association

the

will

similar duties.

involve

Utilities

the

.;;:v

soon

Moving

Trust

Co.,
City, announced that,
alterations

have

where it will have added facilities
for

the

conduct

In addition

of* its

business.

to the main floor and

mezzanine,

which

extends

vault with commodious

examination

from

larger

rooms

securities

and

for
for

'-I

the

cities

bankers

say

cities

they

are

"./The estimate of how
23

able, it is announced.

from
and

ment

the

encouraging
property, owners," said Frede¬
rick P. Champ, Association Presi¬
dent. He likewise said:
"While almost all other taxes
are

weeks' supply

been

asked

not

until their stocks

use.

naturally rising to

pay

for

real estate taxes gen¬

erally do not

appear

to be in¬

creasing generally. This

the

armed

direct

forces,

I,
Di¬

you,

(1)

expand

facilities

the

United

Information

States

United

Office of Govern¬

Reports,

Service

that visitors shall have

one cen¬

tral

place to which they can go
and information;
(2) . inform
department
and
agency heads of my desire that

for

direction

they assign such of their per¬
to duty in this central
as
may be necessary to
carry out this general purpose.
sonnel

further

transmit

heads

that

direct

you

of this letter to

copy
all

Federal

agen¬

cies.

Armstrong In War Post
The National War Labor Board

Feb. 5

ment

the

announced the
Robert

Industrial

appoint¬
Armstrong of

Research

Depart¬
ment; University of Pennsylvania,
of

Director

mation.

Statistical .Infor¬

Mr.

Armstrong will be
charged with the duty, under the
direction of Dr. George W. Tay¬
lor, Board Vice-Chairman, of assemblying and correlating such
statistical

data

nent

the

Board.
the
he

the

served

Bureau

consultant

the

instructor

Gettysburg
burg, Pa.

the

his

post at
Pennsylvania

of
as

perti¬

before

addition to

University
has

may

cases

beet

produced in
while the re¬
imported cane
which came principally
sugars

FDR To

Dominion,
were

the

West

British

Indies

British

other

Census

and

economics

College,

Gettys¬

Report On War

President Roosevelt is expected
to make a report to the Nation
activities

war

ad¬

radio

possessions
Of the sugars consumed in 1940.
home production supplied ap¬
proximately
75,000
tons,
or
15%, while the balance came
primarily
from
the
sources

dress, probably
around
George
Washington's birthday (Feb. 22),

quests from people to make such

above.

Lester Named Director
LOS

White

the
Jan.

announced

Stephen Early, White
Secretary, said that the

House

had

received

talk in order

far

"to

troublesome

sonous,

House

29.

President

prove

the war,

two

the

mentioned

too high.
much too

-"I believe this sampling poll of
leading cities indicates a trend
should

three-

approximately 100,000 tons
might be saved by

sugars

/•*

many

re¬

dissipate poi¬
rumors and,

possible, to give the
clearer and better un¬

ANGELES,
CALIF.—
Bernadotte P. Lester, President of

country

Lester

involves."

Street,

members

Co.,

621

South

the

Spring

Los

An¬

geles Stock Exchange, and Albert
S.

Knies,

official

Reynolds
Metals Corporation, were elected
an

well agreed

is en¬
fairly to the Board of Directors of Rohr
that the real estate Aircraft Corporation at the annual

tax burden

in recent years

couraging because it
conference purposes will be avail-'

the

these taxes are averaged
lk % for these 37 cities.

which

mainder

high

sugar

were

polled by

mortgage

have

central

proximately 95,000 tons, or 18%

>•/

limited

Of the 1941 consumption, ap¬

Association, mortgage bank¬
do not consider present real

other Heading

been

completed, the trust company^will
change its principal office from
37
Broadway to 50 Broadway,

also

exhausted. It is calculated

curtailed

£■'.*. estate taxes too high but in 37

Korell, President

buy

were

crease.

than

hand

rector of the

coordinated

Commander

and

therefore

use

President

Chief

dur¬

quarters of a pound per person
each
week.
Housewives
with

already too

said:

Commission?

Underwriters

York

sugar

Canada

For

in¬

activities

States

the

refined

hold

necessary

office

quote:

tax which

now

office.

will

increase of 21,958
tons, or approximately 4.4%, ac¬
cording to advices received by
Lamborn & Co., New York. From

high, ac¬
cording to data compiled by the
Mortgage Bankers Association of

Underwriters Trust

New

members

one

under the direction of

ing 1941 totaled 522,901 long tons
as against 500,943 tons in the pre¬
year,

their

This

;

vious

of the de¬

and

Seminar

stamps.

many

National

the firm's announcement we

Unlikely In 1942

likely will show

seems

ers

the

Institute's

Dominion

result,

ques¬

its

Canadian Sugar Use Up
the

authori¬

their

and

Forum

Consumption

Government

give

can

integration of
the various offices having direct
contact with the public and that

be adequately prepared to

the

answers

visions.

material, it is pointed out by Mr.
Newell, will enable local chapters

Atlantic

the

and

specific busi¬

that there be

and

in 1942—the real estate tax

our

Houser,

Division since 1938.

in¬

bond

Public Relations Committee.

that the

ef¬

war

agencies have
expanded their information di¬

pro¬

—but

known

made special Broadway to New Street,

charge of Industrial Branches.

His

with

attorney

.'became

i Priorities

an-

detailed

defense

and

who

partments

sent

become

locate

Y.,

1942, consumption is ex¬
pected to show a decided de¬
crease due to rationing. House¬

of the War

Division.

the

tions.

bonds

organizational

the

Committee

Mortgage bankers in 38 prinDirector of the Public
II cipal cities believe there will be
Utilities Division, succeeding Mr.
£ no real estate tax rise this year,
O'Brien.
Mr. Houser has been
although bankers in 24 other
Assistant Director of the Division
leading cities expect some in¬
since April, 1941,; and has been
associated

the

has

utilization

Washington

tative

stamp campaign to the members of

Philip D. Reed, Chairman of the

cedure for

Industrial Branches Unit

has

AIB

pointed

;

sale

in Rochester,

stamps

that

the

for

official

chapters and study groups.
preparations began with a

The

as¬

Government.

difficult for those coming

400

crease

Mr.

appointment

also

that

fort.

in¬

than

their

facilities

ness

among

numbers
and

business men
are
at¬
to obtain advice and

their

drive

increasing

the

Feb,

P. D. Reed Heads WPB's

direction

the

Association.?

culmination

'•:

tempting

campaign by the In¬

the

Tne

Mellett

Mr.

Many

Trust

office.

information

tensive preparations for launching

Long Beach, Calif., has been ap-;

section

letter

sistance

The Institute

Bankers

The national

rected

by J. Reith.

Manufacturers

educational

of Mr. Foelber.' The
collection department will be di¬
charge

the

American

the

Railroad

There is at least

Pres¬

nominated

the

The

dent

MeL

coordinated

seeking

by George T. Newell,
AIB President, who is Vice-Presi¬

Co., New York City.

divisions

•

ington

announced

the

Real Estate Tax Rise

Jan. 22 and the Senate

confirmed

28,

it is

The

Mr.

Citizens are coming to Wash'

paign are being undertaken,

Association.

Bankers'

Line

Coast

Chairman

also

was

American

United

Mr.

the

Roosevelt

O'Brien

said:
,

Advisory

director

States District Court for the Dis¬

ident

of Banking in the govern¬
ment's Defense Saving Bond cam¬

effort.

war

directed

this X central

President's

Insti¬

American

the bonds and

Justice

caused

formation
under

7U,000

tne

also

notify department and
heads to have their in¬

agency

Council of and study groups of the Institute
the
Federal Reserve
System to to undertake aggressive promo¬
represent
the
Sixth
(Atlanta) tional work in the campaign.
Federal Reserve District, accord¬
Special emphasis will be placed
ing to an item in the Atlanta on the public education aspects of
"Constitution," of Jan. 11.
the drive, Mr. Newell said.
In
Mr. Young has a background of
meetings held by the local chap¬
43
years
in the banking field. ters and study groups, the objec¬
Aside from being President of the tives of the
government's cam¬
C. & S. Bank, he was a class A paign will be
stressed, in order
the

sion

the

visory Council from 1934 through

Jan.

Secretary and Treasurer.

on,
'

Young, President of the

Co.,
the
a member of the Securities
Thomaston Cotton Mills, the Nehi
Exchange
Commission
on Corp., the U. S. Fidelity & Guar¬

members

formation

Fed. Advisory Council

Heads SEC Utilities Div.

trict

mobilization

1936.

Mr. Eicher to a

•President,

Ex¬

tne

now

Officers

voted

Young Named To

H. Lane

N-30A-2 and Rule
amended Rules

•ernment bonds and local corpora¬

securities.

lett/. to

Campaign

Nation-wide efforts to complete

the

the utilization of their

President

AIB Pushes National
Defense Bond

for

rection for

-•

tne

office

central

who

facilities

The

fills the vacancy on the Commis¬

tion

States.

Lin¬
- as

\ •'

Reports, to

Washington at¬
tempting to obtain advise and di¬

several weeks ago.

Agricultural

directed

Director

Government

pro viae

those

tell the
public of the need for widespread
participation in the purchase of

'underwriters,
distributors
and
'dealers'in--railroad, public utility,
industrial, municipal, U. S. Gov-

■

United

members

the

any

belligerent

with the oath being ad¬ anty Co.,
and
of the
ministered by Edward C. Eicher,! Chamber of Commerce.
former
SEC
Chairman, who is:

act

Feb.

the

defense

been

has

Inc.,

the

States

and

1ND.—Foel-

WAYNE,

*ber-Patterson,

Securities Exchange

the

•Formed In Fort Wayne

per

:•

Roosevelt

expand the facilities of tne United
States Information Service so as

$1,000 over 1940 and
assessed value in
these cities increased only 0.1 of
only 2(J

Expand Facilities

Melleit,

Oirice of

tax

estate

and

N-30A-3,

The

Foelber-Patterson Is

real

average

and

Rule

Act,

one

tne

H. L.

under the Investment Company

Robert

FORT

Re-

change.

mission adopted two new rules

of¬

;v/: L vl-.-

number will be

pnone

.Randolph 7120.

Commission's

In connection with the adop¬

fice in the Wrigley Building will
be

well

tion of Form N-30A-1, the Com¬

jbranch of Shearson, Hammill &
Co. through the merger with the
..Chicago
office
of > Winthropy
Mitchell

Commis-1
as

gional Offices.

Trade

iof

the

from

The office in the Board
Building
became
a

:Street.

the

sion, Washington, D. C.,

Salle

300
management'
companies.
Copies

Unit

lications

South

ap->

be obtained from the Pub->

may

quarters

being sent to

of Trade

South

208

new

203

consolidated

Board

[Salle Street in

Shearson,

—

was

tute

States

The amendments will

Com¬ Bank

Consolidates Offices

incident

nation

repre¬

Investment

ciation

and

United

the

-to

staff

than

meeting

same

of the

comment, and conferences were
between

not I

of the

service

companies registered under the
Investment
Company Act for
held

the

extend

tary,

management

the provision to
engaged "in any mili¬
naval
or
other
public

during

adoption

its

the
Board approved an amendment
to the section authorizing ap¬

enemies

the

members

quire information only if some
change in the data previously
occurred

the

service

Investment Company Act.
Most
of the items of the form re¬

has

have

pointment of a floor representative by a member in active

the

under

Commission's

the

rate in 263 cities in 1941 increased

■'>»:;■■■■-•

terms

receive

the
fiscal

company's

Exchange
states:

the

ab¬

half of such commissions.

The

might

;

year,

that Paul E. Dodson has

was

that

It is
recently shown

business

otherwise

would

Under

member

service

amendment the absent member

is designed to

N-30A-1

Form

bring

handled.

further

announcement

explained:

with

war

announcement

adopted under
Company
Act.

Investment

sent

.as

become associated with their firm

years

stated that it

Lowea

the subject.

!%.•;,

BOSTON, MASS. — Donald
Davis & Co., 82 Devonshire Street,

data

current

commissions

Investment

1940.

ber

and

To
.-President

other

substantiate

seem

the

For Donald Davis Go.

partment.

the

Communications

sults

that the average

the fiscal year.

announce

last month

amendment

Information Service

It is added that the survey's re¬

Commissions to permit any mem¬
ber or
member
firm
to
snare

reported

Manages Depi*

Exchange

proportionately
heavier
other."

than almost any

companies under both the Securi¬
ties Exchange Act of 1934 and

hundred dollars, usually spent for
the club's annual dinner.

Dodson

Curb

Constitution authorizing the Com¬

of five

sum

York

New

re¬

Governors of the

mittee

formal din¬

the

filing

The Board

used

ing.
The
Club
unanimously
adopted a resolution to turn over
to

pro¬

single annual

luncheon meet¬

its

SEC 'on Jan. 29
adoption
of
a

the

announced

traditional

its

step

simplifying

gram

The Bond Club this year discon¬

tinued

further

been

NY Curb Acts To Aid
SEC Adopts Single Report
Members In War Service
Form for Management Cos.

Chicago

659

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4045

155

derstanding of the
Mr.

Early

President

"timing
but

that

explained

does

and all it

war

not

very

within

feel

good
a

that

the

that

the

just now,"

month

"it

seems

has

stockholders' meeting.

quite possible he will have

things of

some

importance to say."

THE COMMERCIAL & FINANCIAL CHRONICLE

660

Established

1856

Thursday, February 12, 1942

Mail? lira®

H. Hentz & Co.
Members

•

Stock

Exchange

York

New

York

New

Cotton

Commodity

Board

Chicago

And

Inc.

other

Trade

James

wrote

Exchange

Cotton

Orleans

New

McK/inley
Bryant is appropriate enough to
print in its entirety. Mr. Bryant
written

Exchange

Exchange,

believe the following poem

Exchange

Curb

York

New

CREED

MY AMERICAN

N. Y. Cotton

Exchange Bldg.

I'm

just an average American.
I have one thought which stands

*■""

• :

•

DETROIT

CHICAGO

BOSTON

...

SWITZERLAND

GENEVA,

all

Above

others,
;

I BELIEVE

On his

sleeve.

NEW YORK CITY

So shall I

Exports—Imports—Futures

Try

those
In

4-2727

Dig-by

standards

the

men.

Freedom

Now

Walter

Whyte

(Continued from page 653)

If I hold

it may go

on
*

lower.

*
.

'v:

those

And

I realize that in

of the

For

'the trade.
admits

Of these

order

wrong

con¬

the state of

^everything to the people be¬
It's

of the unwritten

one

laws

stock

market

shall

the

that
soothsayers

business,

mistakes.

admit

never

With FAITH in the

Truth and

generation

him,

James

•

True,

noises.

nature to

them

buying

good

The

AMERICAN.

McKinley

Bryant,

Drake, N. Y. City.

Steel

second, American
stocks

Both

critical

have

which

under

"they
they would have an effect on should not be held. This has
other stock. But that was on nothing to do with their busi¬
Wednesday.
The ; following ness prospects or their divi¬
day, Thursday, the market dend potentialities. It applies
should have gone higher. It only' to their technical be¬
didn't.

That

itself

was

being naive and not danger sign. How dangerous
it was, was seen in the action
particularly
interested
in
what other clairvoyants think, of the next few days.
*
*
*
mV;'.:-

havior.

tell

what

least I try
into words.

know.

to if I

can

about three

One of the

principal

reasons
is that I know what it is to

it should be sold.
Steel

American

Founders

being written, the breaks 19, it, too, should be
has already declined sold.
.!

market

breaks 29,

Foundry

As this is

put it

points. Now-three

points may not look or sound
like much, but in these days

it is

profits.

plenty.

of those

one

dreary

Fitz¬

The story

full of yawns.

messes

heroes.

are

■

TABLES

BARS

felt

Because

under

the

weather

last week",

having, that's

but

(and believe

with the

me,

(?)

friend

ing, as see the following note: "Sorry to hear you don't feel well,
kid," writes the anonymous Jacobs, "but after all there's nothing
better than curling up in a book with a good easy chair.
That is,
to you there may be nothing better.
To me, curling up in a night
club with a good (good, if I'm unlucky) blonde is much more fun.
Take, for instance (and a lot of people are), Joe E. Lewis at Fefe's
Monte Proser.

at Monte Proser's Copacabana. I dropped
Well, it was more than dropping in. I tried
to get the Fordham line to run interference for me. But that wouldn't
do any good either.
Then I told Joe Lopez at the door that I was

No, I

in there the other

of the

one

owners

of the walls.

they put two
one

don't

revues

longer

item

Cotillion

and

they made

happened to

minutes
no

mean

night.

than

should

Room.

one.

you

reason, you can

■

for

room

bulge in

one

to the opening of the new show when

It lasted two hours.

This is exactly 45

certain nite club I know lasted.;;
"One
miss, son, is Ella Logan at the Hotel Pierre's
a

That's

Ella-mentary,-my dear Watson; and what's
That means you

the policy has been changed: Dress optional.
have to wear your grandfather's cutaway

there anymore.
terrific*" wonderful^'but
personally.
"When
will I see you?
I'll probably be in the Army next month, so let's
make it soon. They'll be calling me the Sergeant Yorkobs of this
war, you know. Before I leave, I'm throwing a Staying-Home party
for all the tearful friends I'm leaving behind.
I'm overlooking the
'friends' angle in your case.
Will you come anyhow? ... "That's
about all, except could you get around to saying something nice
about my red-headed account, Margie Hart?" (O. K., you sergeant
you, Margie Hart is a nice girl!)
.
"Oh, before I forget," adds
Jacobs, who shall remain unknown, "Fellow called up the 1-2-3
Club the other day and said, 'I'm coming over Saturday night with a
party of ten. Don't worry about chairs. I'm an undertaker and will
bring my own'!
That's the kind of cooperation Stearns is getting,
although I must admit he did say 'no' when a couple, rather than
be turned away, offered to sit on Roger's piano.
'Well, then,' said
the girl, 'I can play the piano. How about sending my date home
and letting me knock off a few duets with you'? That's right, kid,
Rogers said 'no' to that, too." . . . Bobby Kittell writes from Los
Angeles, asking will I please mention Bert Rover's Paris Inn Cafe
in Los Angeles.
It is, he writes, the place for dealers and brokers.
It has singing waiters and an "A No. 1 floor show."
I have never
been there so can't say much but friends of mine agree that's a place
this

Logan

sensational,

She's

girl:

can't

her except maybe

see

On the up side, these stocks
show the following: American

want the Car & Foundry now has a
find it in the clearly indicated resistance
news.
In the Far East Singa¬ area, beginning at 323/4 and
I: I know that when you ap¬
pore looks doomed; at home extending to about 34.
;
proach the order window,
our Congress is busy making
you can't give the order clerk
American
Steel Founders
Instead of fighting
"a speech on the state of the speeches.
a
war,
Congress is talking has a similar zone, beginning
world, then expect him to
it's
head off about
"boon¬ at 21^ and reaching to about
/make up your mind for you
V-. !
doggling." How a market can 23.
^and buy the stock that will
❖
*
*
go up, and stay up, in the face
^go up. You have to be defi¬
of such things, I don't know.
If either of these stocks
nite. You either know what
I can write reams about this,; approach these areas and no
; stock you're going to buy, and
but
it
has
no
place> in a volume appears, and if the
buy it, or. you don't. If you
take losses and

Tasket)

outside of that I

If American Car &

(Tisket, A

Ella

almost

'Em Cowboy"
Costello pictures, this

The boy and the girl finally understand each other;
gamblers are foiled; the ranch is saved from foreclosure, and

About

But

Abbott

Macs,

This

"Ride

new low!), I didn't get around
of ours, Seaman Jacobs, a press
agent, who shall remain nameless, evidently did a bit of pub crawl¬

Founders, is still at about 20.

idea, but good enough to say levels

...

often before.

the

much

tolerance,
Brotherhood,

Hotel

the

by the Merry

weather we've been

This I believe

;

one

Americans."

For

picture.

sore at the famous author of wild west yarns, because he
is (1)
phony; (2) he made her lose the prize money in the rodeo, and (3)
she loves him to pieces.
From there on you know the story by heart,
Abbott & Costello pull out all the old gags and tricks they have used

EVERLAST¬

Light and Right!

"Ballad

whole

Another

supported

Abbott & Costello

respect, lock
make
in ivory tow-

'ers and hand down their

low.

what

these weren't of

gain

and

truly GREAT DEMOCRACY

the

own

and bred

born

one

his

pair of hucksters at a circus, one, of hot dogs, and the
other, peanuts, who get tangled up with a rodeo and find themselves
at a dude ranch.
Involved is also the ranch owner's daughter, who

' '

sincerely

Of love and

name—HITLER—
calls

„

ING GOD

alone,

DICTATOR!

-V

latter men

heard

THAT,

still,

believe

Its only saving grace

save

dastardly producer who
show, but who put on a
on its ears. - The whole
is the finale which ends with

only, foil the

use

that sets the town

FIGHTING HIM.

DIE

Thisr-

the side of Totali¬

stands out

I've

better

own

while

instinctively,

Forecasters, in encouraging

themselves way
sidered edicts

His

forecaster

that

worried.

even

talking like

am giving away some
closely held secrets of

this, I

being

who believe in

men

tarianism.

One

battle

Democracy

handful of memories.

IDEALS

FIGHT A MAN LIKE

and

involves

the

not

score

Touche-Robinson

wind itself it is

feel,

American!

maintain

the world

frenzied

the

Between

Thought

Speech,
Worship.

over

is worth

waged

Says
but

all

There

brain

DEMOCRACY, :

and of

who

gerald, Dick Foran, Johnny Mack Brown and Anne Gwynne. Like
all previous Abbott & Costello films this one is funny only when the
pair are on the screen. When they are off and the plot tries to un¬

heart.

Therefore I say,
To

Reap the reward of

Tomorrow's Markets,

his

in his

man

often:

production of their
the

of kids, in one of those success yarns you've
It's about a gang of kids from the other

gang

the musical

(Universal).

Life.
a

thing is silly.

how I would

KNOW

tracks

time

Chaos

Because

the

Light of Day

rule of

supposed to-happen but in the struggle the Nazi is
place. He promptly schemes to

screen

Love

And Death

therefore

will

With

enough

Under the

doing,

the

And

retain

about

Totalitarian

the

steals

:
of

feel

would

That hates the

Democracy,

our

rule

what is

killed and the bookseller takes him

side

Power

by their ideals,
Have sown the seeds of Liberty
In the Fertile Fields
Of

how

Detner, the German consul, orders him to help the Nazi cause. Becker
refuses and the Baron takes it upon himself to kill him. At least

seen

living;
Under the

Who

SUGAR

know

•? /

•

No, it comes to mean ;
A mighty real thing to me.
It means that, as the great men,
Past and present,

WALL STREET

EARTH!

self up against the Nazi machine when his twin brother, Baron Von

it Patriotism,
But I would call it- v:
HELL

they are), the picture is behind the times. Still the story is exciting
fairly weh done. Otto Becker, a studious bookseller, finds him¬

and

McDonald and

He calls

just don't wear it on my lips
As a decoration,'
''
Like Hitler wears his swastika

Conrad Veidt and Ann Ayars,

(MGM), with

spies, saboteurs and German consuls, who direct
them from behind diplomatic curtains.
With the United States at
war and all
German officials out of the country (at least I assume

upset the German applepart by giving all the plans away to American
authorities.
V> "Boim To Sing" (MGM).V Virginia Weidler, Ray

By hating the world.

LIBERTY.

Spies"

thriller about

that is

ioves his country

Who

■;

—

me."

with

That, I believe is in the mind of a

word,

one

"\ J

Simply because

LAMBORN & CO.

is one who, by my way of
thinking,
-, Must say to his disciples: Quote—
"My deeds may be accursed
As Cain's own crime,
"
But then you shall all be Cains

"House

LIBERTY.

man

LIBERTY.

•

NEW MOVIES

authority

DECTRUCTION

the

Unquote.

alone

out

PITTSBURGH
V

in particular, "

one

I'm

NEW YORK

Dictator is

1941, six days He

Dec. 1,

before the attack on Pearl Harbor.

Exchanges

If I understand this word at all
A

to have fun in.:

•*

column devoted to

interpret¬

rest of

the

market

lacka¬

jdon't, then all the learned ar¬
and, advising on;,stock daisical, my suggestion is that
ticles as to why a certain con¬ ing
markets.
>;;•<;
; | you sell them.
dition may or may not affect
5je
Sjj(C
securities
won't
By the time the next col¬
help you,
Meanwhile you have bought umn appears,®I may be wrong
though they may pass the
two stocks. These were rec¬
'time away.
again," but that's' the chance
■
>"
.

■

St. Louis'Bank Stocks
Gatch Bros.,

the

issued

•

But to

get back to realities.

Last week I wrote that

the

steels go so would the market.
At the time this was written-,
the

are

were

beginning to make
<

week.

They
Foundry!
better, and American

American Car &

at 32

Steel Founders at 20
The

first

steels, particularly U. S. about

Steel,

last

ommended

paper

30M>,

now

better.;

selling

showing

I have to take.

1942

their

Edition

loss of about 1 Vi points.

This

attractively bound brochure

important factual infor¬
mation on a number of important
banks in and around St. Louis,
includes

and may be obtained upon

[The
article

views
do

not

coincide

Chronicle.
those

Thursday.
—Walter Whyte.

expressed

& Mc-

those

the

They are presented as

of the author only.]

Kinney.

The firm also plans to
a

-J

most

unique restaurant in

beautiful location,

overlooking

Central Park to the north.

banks'
may

Serving' best

food, skilfully

send out
of

statement

mid-year

indicated

earnings,

the

Telephone PLaza 3-6910

which

also be had for the asking.
J

prepared.

'•

/.
J

request

Gatch Bros., Jordan

from

this

necessarily at any
with

SOUTH

Adjoining- The Plaza

time

you

30 CENTRAL PARK

Manual of St. LQuis Bank Stocks.

The Penthouse Club

Jordan & McKin-

Inc., » 418 Olive Street, St.
Louis, Mo., members of the St.
Louis Stock Exchange, have just
ney,

i".

t.vi

.«>■"1

■-

■i

it .i
(

t '<{■

(

.1^■

(

> :

Volume

Number 4045

155

THE COMMERCIAL & FINANCIAL
CHRONICLE

IOWA

OFFERINGS
CORNELL-DUBILIER
Cornell-Dubilier

ELECTRIC

Electric

Iowa

CORP.

Corp.

filed

SOUTHERN

filed

UTILITIES

CO.

DELAWARE

Southern

SEC

Utilities

registration

market,

Co.

has

Del.

statement

the

with

for

debentures;
tive

1971''--

ering

with

the

SEC

cov¬

$1,500,000 convertible sinking fund
30,000 shares of 5% cumula¬
preferred stock, $50 par;

convertible

and

unstated

the

par,
Issuance
tures
and

statement

the

reserved

preferred stock.

the

for

deben¬

Interest

rate

trical

maturity date of the debentures will
supplied by amendment.
.•'•/:*.

Address-^-333

field,

Hamilton

S. Plain/ •'

Business—Engaged
sale

Blvd.,

various

also

vices

manufacture

and

types of capacitors, known

for

two

fixed

electrical
condensers,
de¬
storing electrical energy between
more conducting surfaces separated

dielectric

Offering—Company states that because
the present
uncertainty of wordwide
conditions, it is impossible to determine at

this

time

visable

whether

for

the

will

ad¬

financing to be
offering of deben¬

proposed

effected by means of an
tures or

both, the

tures, or the preferred stock, will be sold
to the public, and the other type of secur¬
ity

will

Public

eliminated

offering

> Proceeds

from

registration.

price will be supplied
: /.:
,

amendment
will

used

parts

$400,000

pay

loans, reimburse company's treasury
expenditures made and to be made for

the

SEC

with

its Dec. 29, 1941 registration
in which amendment the com¬
disclosed that it has chosen to issue

statement,
pany

$1,500,000
fund

10-year

convertilbe

sinking

debentures, due Jan. 1, 1952, instead

of the 30,000 shares of 5%

vertible

stock,
$50
par
value.
registration statement also cov¬

maximum of 175,000 shares of

stock,

mon

con¬

preferred

Amended

ered

cumulative

value,

par

com¬

reserved

for

price

23, 1942, pro rata,
supplied by amendment.

The unsubscribed portion of the debentures
will be offered to the public, at a

price to
supplied by amendment, by the follow¬
ing underwriters: Eastman, Dillon & Co.;
Kidder, Peabody & Co.; McDonald-Coolidge
&
Co.; Merrill Lynch, Pierce, Fenner &
Beane; Hornblower & Weeks; Jackson &
be

Curtis.

The

scription

.amendment
The

expiration

offer
.

will

v ;

will

stockholders

debentures
stock

ratio

fw t each

held

■•••

■

common

■

•;

p.m. Jan.

Offered

17
100

registra¬

statement with the SEC for $1,000,000

15-year

Sinking

later

amendment

•

to
the
public, at prices tQ be
supplied by amendment to the registration

statement

Proceeds,
the

together
will

company

following

issues

other

used

first

the

mortgage

Underwriting—Principal underwriter is
Lynch, Pierce, Fenner & Beane;

Merrill

will

named

by amendment.

Offering—Public

offering price of the
Debentures will be supplied by amendment.
Proceeds will be applied toward the pay¬
of all outstanding bank loans of the

the

bonds

>-'/

interest

accrued

Registration Statement No. 2-4932. Form
(1-22-42-Cleveland)
1942

filed

':,v
14,

Jan

filed

its

amendment

registration

Dec.

27,

with

the

SEC

statment

1941.

states

pany

originally
this amendment,

that

now

filed
offer

sinking

000,000
tire

fund

debentures

Proceeds
of

from

debentures

sale

will

due

used

order.

ing

will

debentures.

first

for

the

debentures

the

with

lative

SEC

120,000

has

Proceeds

and high pressure boilers, Unaflow engines, radiator
valves, boiler gauges
thermometers

and

behalf

represents.

will

b»

stockholders,

syndicate

which

Subscription price Is $2.50 per
v\.r/•;>: y-y

•hare

Proceeds will be used for
payment of cer¬
tain outstanding bank loans and notes

Registration Statement No. 2-4865.
Al.

(10-23-41»

for

Form

Effective Jan. 6,

1942 at 4:45 p.m. E.S.T.

subscription

stockholders

of record Jan. 7 at $2.50
per share.

Rights

expired Feb. 5.
Shares not subscribed for
by stockholders have been taken up
by Max
Kalter

become effective, that
is twenty days after filing except in the case of the secur'
ities of certain foreign public authorities which

panded

normally

seven days.
dates, unless otherwise specified, are as of 4:30
P.M. Eastern Standard Time as per rule
930(b).
Offerings will rarely be made before the day follow¬
ing.

These

ING

registration
of

ferred

Stock,

exercise

the

SEC

for

sale

for

issuance

7,500
Pre¬

upon

privilege of

the

Underwriting
stock

offering
writers

will

and

will

price
be

and

Offering—The
offered

supplied

names

pre¬

the

public;

the

under¬

later

amend¬

Proceeds

will

of company,

used

restore

and for working

cash
cap¬

ital.

Registration Statement No. 2-4933. Form
A2

extent

under

contract

owners,

include

Form

the

orders

upon

Marion

Business

and

now

Citrus

being

purchase,

ex¬

sub-divi¬

Offering—Company

will offer, through
Contracts, land suitable for tung grove
development, together with its contract for
the clearing, planting and
development of
a tung
grove thereon, in units of not less
the

acres

ance

Proceeds for

land

and

price of

$45

per

payable one-fourth down and the bal¬
in 3 equal annual payments
?

acre,

for

total

working capital, as payment
and for development
work

sold

Form

(l-24-42-Cleve]and)

Amendment filed Feb. 5 naming Hayden,
Miller & Co. as principal underwriter

GOLD

CO.

■n.

registration

150,000 shares

common

develop

mines

and

the

for

•'//•■/

been
gold

organized
and

silver

Treasure

Mountain, in San Juan
County, Colo./•;.
Underwriting—None

Offering—Company will sell such shares
directly
cents

the

public,

price

(1-29-42)

;

'•■'V-'y;

■.

Full

Certificates

Participation,

Series

"B-2"

rate

trust; each Keystone Fund is
operating
specifies

its

under
and

trust

controls

investment
strict trust

Underwriting

step in

111/

Offering—The Series
Participation will be

and

and
of

sold to the public at the
market, the issue
being sponsored by the depositor
will

used

for

investment

Registration Statement No. 2-4942. Form
C-l
(1-27-42)

Keystone
Custodian
Funds,
a
registration statement

filed
for

100.000

Fund

Full

$100

Keystone

Certificates

Inc.,

also

with

SEC

dividend

Ave.,

Chicago,
'

its

subsidiaries
and

(carbonic

gas

sale

and

preparation

oxygen,
durable

acetlyene
products

luncheonette

done by company
consists of the manu¬
consumable

ice;

dry

and

medical

(soda

equipment,

products

extracts

beverages

gases;

fountain

ice

cream

used

food;
and

bars,
cab¬

inets,

bottling equipment)
Underwriting — Principal

underwriters

Bissell
&
Meeds;
Spencer
Co.; Merrill Lynch, Pierce, Fen¬
Beane, all of New York.
Names of

ner

Participation,

the

other underwriters

amendment

will

Form

Frank

2,695

5,390

Securities.- Co.-/,/" 2,695

Co.,

Inc.,-,,-,,,-

Co.

supplied by

p 2,695

Clark,
E.

Clark
&

Cooley

City and steam for heating to two
mers
at
its Atlantic City plant.
of

gross

practicable
ment

revenues

■'

43,120

,——,

2,695

5,390
2,695

Co.2,695
&

Co.,

Inc

5,390

Dominick

53,900
21,560
13,475

Exnicios

13,475

Co., Inc.—

2,695

—

107,800

Boston

Corp
Michigan

2,695

8,085
5,390

Corp.

Gatch

Bro.

8,085
8,085

18,865

Bros., Jordan

McKinney,

Inc,

■

Offering—As

About
from

the

soon

registration

Goldman,

Sachs

Co.—

—53,900

Graham, Parsons & Co.
Green,

state¬

13,475
2,695

—

under

•

Anderson

—

5,390

—

5,390
& Co., Inc./;/,—;: 83,545
Co., Inc.,^,^,—24,255

Harris, Hall &

Hawley, Shepard & Co.——
Hayden, Miller & Co..

competitive bidding rule of Holding
Company Act.
Provision is made that the
remaining 13,000 shares of new preferred
offered

Harriman Ripley

under

Ellis

Hallgarten

effective, company proposes
publicly to invite proposals for purchase of
49,000 shares of the new preferred stock,

will

2,695
5,390

Hayden, Stone & Co
Hemphill, Noyes & Co._-i/-.i-i,_,
Hill

Hirsch, Lilienthal & Co.—a.

the

Hornblower

will

entitled

receive

share of
of

new preferred stock for each share
preferred stock exchange, plus an

amount in
of

cess

cash per share equal to the

the

crued

dividends

the

price of $120 per
preferred stock, plus ac¬

the date of redemption,

the initial public

offering price of the
preferred stock.
The exchange offer
expire not later than the fifth day

new

will
after

such

offer

made.

Should

of the $6 preferred stock held

take

than

ferred

then

stock

the

ferred

bidding
and

ferred

number

stock

will

the

represented

price

same

such

Public

offering

underwriters,

from

283

shares
for

pre¬

Offer,

new

pre¬

competitive
such excess;
new

pre¬

deficiency at
they have

price, and the names of
will
be
supplied
by

sale of the 62,000 shares

company,

Gas

Electric

will be used

for

Gas

preferred

stock

(to

redemption at

$120 per share),
in the hands of the public;
to discharge open account in¬

debtedness to American Gas & Electric Co.;
the balance for corporate
purposes
Registration Statement No. 2-4941. Form

and

(2-2-42)

registration

statement

Co.

with

common

the

stock,

SEC
no

engaged

Louis,

Mo.,

and

portion

3 coun¬

ties in Missouri adjacent to the
company's
Osage hydroelectric plant

Underwriting—Dillon,
York,

Names

named

the

Reed

&<Co.,.New

principal underwriter.

other

underwriters

will

supplied by amendment

Offering—The 2,695,000 shares of com¬
pany's common stock are outstanding and
are owned by its
parent, The North Amer¬
ican

Co.,

who will receive the entire pro¬
ceeds from the sale to the
public of such
shares

Form

(2-2-42)

Union

1942

tration

8,085
8,085

Kuhn, Loeb & Co.,——

—

Ladenburg, Thalmann & Co

24,255

Higginson

Carl

Corp.
Loeb, Rhoades & Co.—-

Loewi

—_

Co.—

Mackubin,
Laurence

Marks

13,475

—

Inc.

2,695
Co..

2,695

McDonald-Coolidge & Co.—
Mellon Securities Corp.,
Lynch,

Pierce,

5,390

83,545

Fenner

,,—

—

Merrill, Turben & Co.—

—,

Metropolitan St. Louis Co.—,

filed

Co.

Missouri,

amendment

statement,

naming

the

its

Feb.

regis¬

underwrit¬

16,170
2,695

16,170

Co.,5,390

Mitchum, Tully & Co
Moore, Leonard & Lynch,—
Morgan Stanley fy Co
F.

2,695
2,695

McCourtney-Breckenridge &

Merrill

24,255 "
2,695

Legg

Mason-Hagan,

Moseley & Co.—,,—

10,780
5,390

107,800
24,255

Maynard H. Murch & Co

2,695

G. M.-P. Murphy & Co.—
10,780
Newhard, Cook & Co.—24,255

Newton, Abbe & Co.,—_
The

Ohio

Otis

Page,

Co.

5,390
2,695

—

Co. of California-,—1——-

Pacific

Hubbard

8,085
2,695

Paine,

& Asche——,—,
Webber & Co.—
—,

10,780

Piper,

Jaffray & Hopwood—„

5,390

Putnam

Robinson,

2,695

8,085

Rauscher, Pierce & Co.,
Reinholdt & Gardner

Inc.——

Rollins &

Rothschild

5,390

10,780
5,390'

24,255

;

Rohrbaugh & Lukens

Sons,
&

2,695

Inc

>43,120

—_

10,780

Schoellkopf, Hutton & Pomeroy,
Inc.

Chas.

Shields
I.

—!

.—

Schwabacher & Co

8,085

———,

8,085

Scranton & Co.——,—,

8,085

Co.—

Simon

83,545
Co.,

13,475

_—

Singer, Deane & Scribner
Smith, Barney & Co
Smith, Moore & Co.,————
—-

William

Staats Co.

Starkweather
Stein

Bros.

Stern

Stix

Wampler

Co.,

Inc

—

Co., Inc

Blodget, Inc.-

Inc.—

2.6°5
;—

Anthony & Co
Securities

H. Walker

83,545
24,255

Corp.,!

102,410

Co.

83,545
5,390

Spencer, Trask & Co

Whitaker &

8.085

18,865

Co.,

Wells-Dickey

8,085

5,390

24.255

I.owry Swenev, Inc

Union

13,475

10,780

Stone & Webster and

Stroud

5,390

83,545

2.695
—

Co.;

Nicolaus &

—

& Boyce

Brothers

Stern,
Stifel,

Electric

102,410

43,120

Lazard Freres & Co
Lee

Tucker,

Registration Statement No. 2-4940.
A2

43,120

for

par

tric energy, which it generates and pur¬
chases from its
subsidiaries, serving the

St.

Peabody & Co.—,,——

Riter & Co.——
a

subsidiary of The North
primarily in the
transmission, distribution and sale of elec¬

city of

Kidder,

Co.,:..

Reynolds & Co.—,.

UNION ELECTRIC CO. OF MISSOURI
Union
Electric Co. of Missouri filed

American

10,780

Jones &

2,695

new

outstanding
$2,500,000

—

Lemon

43,120

purposes:

American

called

Curtis.—.

Beane

American

5,390

Lanahan & Co.———,,—

$3,059,200 to purchase
& Electric Co. 30,592
shares of $6 preferred stock (at its cost);
$3,153,960 to be deposited with the re¬
demption agent, for the redemption of 26,from

8,085

10,780

Edward

Johnston,

Milwaukee

company

following

Jackson

Chicago—

Langley & Co.—'—

bid for the other shares
the

—

Co. of

Exchange Offer,

per

Hutton & Co.——,—
Hutton & Co

then the successful competitive bidders Will
have the option to purchase the additional

2,695
5,390

13,000 shares of

taken under the

are

Son

Weeks,—Z—10,789

under

holders

Exchange

sold

reduced

than

less

the

E. F.
W.

Hilliard

by the public

13,000 shares of

under

Illinois

ex¬

redemption

one

8,085
18,865

Brothers—10,780

Exchange Offer, as follows: holders of the
26,283 shares of $6 preferred stock held by
public

13,475

——.

Granbery, Marache & Lord

and

registered

5,390

Inc.—

Glenny, Roth & Doolittle
2,695
Glore, Forgan & Co.———53,900

after

Dickson

Francis,

custo¬

derived

are

18,865

Folger, Nolan & Co., Inc.—

becomes

stock

Burr,
Co

Dain

First

energy in

electric service

Co.——————
Co.

Eastman, Dillon & Co.—
Eckhardt-Peterson & Co.,
Inc;/—
A. G. Edwards & Sons,,—/—/
Equitable Securities Corp

regis¬

the southern part of
New Jersey, including Atlantic
City, and is
also engaged in
furnishing hot water heat¬
ing service in a limited area in Atlantic

99#

2,695
2,695

Drexel

engaged in the Gen¬
transmission, distribution and sale

electric

Co——

Co.—24,255!

Dodge &

Coffin

City, N. J. :> ;
'
subsidiary of American

Co.

Crago, Smith & Canavan
Curtiss, House & Co

be" furnished

will

Cahn

Republic

Childress &

Dominick

filed

10,780

:lnck;,;,,i,i.',^_f..13,475

Co.; Inc.,—_„i_—102,410

Central

First

Laird,

are:

Trask

Blyth

Estabrook

Gas & Electric

now

adjacent Missouri counties and of

Kedzie

•

facture
in

The

statement
S.

Business—This

Par.

Custodian

Series "S-2," to be sold to the public at the

supplied by amendment to the

Business—Business

Certificates

Proceeds

will be

Address—3100

operation

"B-2"

Series

registration

agreement

each

FEB.

sub¬

Address—315 N. Twelfth Blvd., St. Louis,
Mo.

Liquid Carbonic Corp. has filed a
registration statement with the SEC for
30,000
shares
of
Cumulative
Preferred

Business

Company

•:■/

The

Stock,

—

•

LIQUID CARBONIC CORP.

Addres?—50 Congress St., Boston/Mass.

24,255'

Co._;,;._^_,_„__
&

Bonner

Ferris

2,695,000

WEDNESDAY,

129,360

& -Co.,

Address—Atlantic

Co.

Becker

Blair

Business—This

other

additional working cap¬

rate

Co., the parent

—

SEC

stock, 25 cents par

operate

ad¬

preferred stock, plus a capital con¬
tribution in cash of $2,500,000 to be made

Mining Co. filed

statement with

value/;///'//
Address—Denver, Colo.
Business—Company has

part

use

will

new

MINING

:"vv= V:;;'.

Treasure Mountain Gold
a

capital
thereof to

amendment

TUESDAY, FEB. 17
MOUNTAIN

Blair,

•'

America,

City Electric

Proceeds

TREASURE

wearing
cash, and

each:

Co., Inc;—2,695
-Bear, Stearns &
5,390 1

amendment

materials

Registration Statement No. 2-4935.
(1-28-42)

INC.

Keystone Custodian Funds, Inc., filed a
registration statement with the SEC for
100,000 shares of Keystone Custodian Fund

dividend

over

in tung groves
«
'
/
Underwriting—Details of underwriting or
distributing method to be employed, will be
supplied by amendment

than

working

Underwriting
the

sion and sale of lands in these counties for

FUNDS,

purposes

ment.

reserve

FEB.

CUSTODIAN

which

manufacture

electric

motors,
generators,
motor-generator sets, mine motors, etc.
ferred

KEYSTONE

fund/

Address—Cleveland, Ohio.
Business—Engaged in the
and

SUNDAY,

Convertible

conversion

preferred stock.

aggregating $450,-

• ;

par
value; and 37,500
stock, $5 par value, the

reserved

with

Cumulative

common

MANUFACTUR¬

Manufacturing Co. filed

statement

shares of

&
'

Reliance Electric

latter

-V

CO.

"will

Proceeds will be used for
working capital
Registration Statement No. 2-4937. Form

THURSDAY, FEB. 12
ELECTRIC

development

course

become effective in

price

Address—Ocala, Fla.
Business—Engaged in the planting, culti¬
vation and care of tung groves on lands
such

women's

Inc;
(N. Y.),
the net proceeds so advanced

use

all

par;

tion statements will in normal

RELIANCE

will

000

Counties, Fla.

Underwriters—None

subscription

stock
a

Contracts for saie of land and
development

others

holding company oper¬
subsidiaries, a chain of
selling

Bond

Battles

tration statement with the SEC for
62,000
shares of Cumulative Preferred
Stock, $100

Co.,

V; Tung Grove Development Co., Inc., filed
registrationf statement with the SEC for

from

which

'/-■•/

•. •

Bankamerica
•Bankers

SATURDAY, FEB. 21

TUNG GROVE DEVELOPMENT
CO., INC.

stock

common

purchase, are'as follows:

Bali; Coons

due

,,i

by amendment

cumu¬

tung groves thereon,

;/
registra¬

Debentures,

stock

and

heavy-duty

Registration Statement No. 2-4934.
(1-28-42)
■', -

such

:*'V

.Auchincloss, Parker & Redpatlu-__
5,390"
Bacon, Whipple & Co
-w— ^-2"'
5,390
Baker; Watts & Co;____^.,_-/^„;/v" 5,390
Baker, Weeks & Harden,5,390

ATLANTIC CITY ELECTRIC CO.

Autocar

publicly offer,the

par)

owned

Dillon, Read & Co
A. C. Allyn % Cq.,
Inc.—.^^

Registration Statement No. 2-4939.
A2 (1-31-42)

the outstand¬

underwriters

used

Form

ital

Issuance of the preferred
Address—701
Nichols
Ave.,
Syracuse,

preferred

Fund

additional

con¬

$900,000 toward part payment of outstand¬
ing bank' loans, and the balance will lie
added to working capital

upon

for

will

has agreed to
"

''/•/

sidiaries for

supplied by amendment.

regis¬

preferred
stock, $2.50
par value;
and 120,000 shares of $1 par
common stock, latter reserved for conver¬

offered

other

■

* /A.-

A'tA'

CORP.

its

Shops

which will

sup¬

the

company's

Corp. has filed

stores

Atlantic

and

will

(no

are

■

eration,
public

all, who

which

Bodell & Co.,
Inc.,,,//—8,085
Lynch,
Pierce, I
Bond & Goodwin,
Fenner & Beane, of New
Inc.,,,,,—-,,,,;
2,695
York, are principal \
Y. E. Booker & Co.J
2,695
underwriters; others will be named by
Bosworth, Chanute, Loughridge &
amendment
■'T;$ J, '•% •*'' ;-"v. 4-;
Co. ———I—/.
w/
2,695
Offering—The Debentures will be offered
Alex. Brown & Sons—
to the public at ft price* to be
ia,
10,780,
supplied by
Burr & Co., Inc
amendment
* v
2,695
H. M. Byliesby & Co., Inc
Proceeds will be advanced to
2,695
Associated

the manufac¬

prefened

the

names

convertible

Offering;—Tlie

H. Rollins & Sons, Inc.,
New York, is named principal
underwriter;

CORP.

Corp.

medium

basis

vance

Underwriting—E.

Offered Feb. 11 at 100 and int.
RADIATOR

remainder

common
stocky'
by its parent com¬
pany, The North American Co.
Such un¬
derwriters, and the maximum number of

UnderwritingMerrill

amendment;
the
proposed
offering price, based on the SEC
filing fee, is $25 per share

later amendment.

tered

Form

maximum

originally announced, with excep¬
Glore, Forgan & Co. is replaced
by Goldman, Sachs & Co., among the 15
underwriters forming the syndicate.
The
public offering price will be supplied by

Radiator

supplied

tion that

Butler

sale

The

chiefly in

Offering—The

BUTLER

engaged

and

offered

mort¬

are

motor trucks

bonds due 1970, now outstanding,
called for redemption.
; ■••;///

Underwriters
same

The

50%

stock

common

ture

re¬

not

cap¬

manufacture

about

prepayment

added

Interest rate

through

carry

Preferred

rate

Sinking

retail

amendment), and 120,000 shares
common
stock, latter to be

Owns

which

$5,-

outstanding
general
mortgage
sinking fund bonds of 1950 and the

Series

ates,

value

par

Business—Engaged

Dec.

the

Convertible

(dividend

par

will

■

141

all

working

processing of parts and equipment for air¬
craft
to
customers'
specifications,
upon

the

6%:

4, 1942

2,695,000

to extent of $700,-

loan;

Business—This'

Address—Farmingdale, N. Y.

the
public an issue of $5,000,000 of
sinking fund debentures, due Dec.
1971, instead of the originally proposed
issuance of $10,000,000 of first
mortgage
3Vz%
bonds
of
1971
and
$5,160,000 of

1971.

added

Mar.

reserved for issuance upon exercise of
version rights of the preferred stock

com¬

proposes

Cumulative
no

plied

4Va%

will

used

partial

bank

1952.

Lerner

Stock,

Iowa Southern Utilities Co. of Delaware

list of issues whose registration state'
ments were filed less than
twenty days ago.
These issues
are grouped
according to the dates on which the registra'

entitling

Liberty
Aircraft
Products
Corp.
filed
registration statement with SEC for 60,000

1942 to defer

Following is

Common

latter

LIBERTY AIRCRAFT PRODUCTS CORP.

effective date.

Offered

Effective 3:15 p.m. E.S.T. on Feb. 4,
Offered Feb. 5 at 100 and int.

the

ers,

the

Address—Baltimore, Md., and New York
City, 1.la .'.//V '/'CV

redeemed

(12-27-41)

Amendment

Proceeds

Registration Statement No. 2-4921. Form

ment

company.

common

upon

outstanding

Purchase Warrants,

the

apparel at moderate prices

Registration Statement No. 2-4936.
A2 (1-28-42)

aggregate

pany,

others

certain

issuance

178

ital

1, 1950, requiring
$15,854,700, exclusive of

'StfO]T£$

<ppP-

for

Year

Jan.

per

at par.
Unsubscribed portion will be pur¬
chased by Max Kalter, director of com¬

r,,v,

authority to
y w
y

Lerner Stores

share, during period from
through Mar. 4, 1947.

due

1, 1970; $2,660,000 general mortgage
sinking fund 4V2s, due May 1, 1950; and
$2,500,000 of 6% series A debentures, due

Debentures, due
1957.
Interest
rate
will
be
supplied by
amendment to the registration statement.
Address—Cleveland, Ohio.
j<:Business—Operates a chain of retail food
•'

an¬

tion statement with the SEC for
$2,000,900

company

charter

its

will

STORES

Ten

sale of

thereof to purchase 176,854 shares
of common stock of
company at price of $4

com¬

4s,

reserved

chat¬

holders

May

Fund

■

Stock

of
the

LERXER

1./■ /"/ %■

are

exercise

funds

its

tires,,

Offering—The 176,854 shares of
stock

redeem

bonds'-of

$10,000,000

pany:

with

new

Underwriting-—None

sold

heating

Fisher Brothers Co. has filed
of

will

Business—Engaged In manufacture and
sale of heating boilers and
radiators, steam

FISIIER BROTHERS CO.
tion

underwriters

scope

interest

and

by automo¬

to
short-term in-,
secured by automo¬

and

the

sion

v" %*>'

10 at

Feb.

other

•;

automobiles

be
to

Almstedt Brothers

their

notes

THURSDAY, FEB* 19

install¬

contracts and

price

amendment

capital
../-, v
„t'.'
Registration Statement No. 2-4938.'
A2 (1-30-42)

and; advancing-funds

dealers

broaden

Effective 4:45 p.m. E.S.T. on Feb. 2 as of
4:45

sales

mortgages,

business

Pierce

com¬

conditional

tel

automobile

secured

later

statement

working

■

discounting

public,

proceeds

Chicago, 111.and subsidiaries en¬

receivable

the

PIERCE

the

furnished

sub¬

$1.90

registration

later

bile

notes

statement
r>;
Offering—The bonds and debentures will

offered

amend

the

:///.< //..'v.//

debentures

mon

date

furnished

principally

ment

gage

stock¬

common

Jan.

stock, $1 par

proposes

scription, through rights, to
record

registration
176,854 shares

for

new

4V2%

SEC

Chicago,

names

the

toward

net

bearing

issuance upon exercise of the conver¬
sion rights attached to the debentures. The
debentures will first be offered for sub¬
holders

000

Due to recent prohibition of

principal underwriters;

registration

Address—^184 W. Lake St.,

are named

Offering—The preferred stock will be of¬
fered

nounced

outstanding

terest

has

amendment

with

Business—Company
gaged

Iowa, ■?* Also, manufactures and
gas to several communities

area,

for

•!:W.;;..r';'

biles.

A2.

(12-29-41)

common

power',

and

used

well as steam heat
Underwriters—W. C. Langley & Co., New
York,
and
Halsey/ Stuart &
Co.,
Inc.,

A2.

heat

purposes

statement

artificial

that

plant, machinery and equipment during
past and current years, and for working
capital
Registration Statement No. 2-4924. Form

Company has filed

sells

light,

Calendar of New Security Flotations

MONDAY, FEB. 16

communities at retail in 24
the southern and southeastern

May

bank
for

preferred stock.

It is not expected
types of securities will be
registered, but that later either the deben¬
that

counties

the

non-conductor

134

for

energy

serving

....

GENERAL FINANCE CORP.
General Finance Corp. filed

Address—Centerville, la.
Business—Principal business of this pub¬
lic
utility operating company is that of
generating, distributing and selling elec:

stock,

common

conversion

upon

amount

latter

proceeds

Proceeds

V ■

the

Registration Statement No. 2-4943. Form
C-l (1-27-42) r;- ,
• •
V,

$10,000,000 first mortgage 3Vz%
bonds, due Dec. 1, 1971, and $5,160,000 of
4'/2 % sinking fund debentures, due Dec. 1,

registration

and

investment

■

661

Co!

83,545
5,390

Co.—

16,170

White, Weld & Co

—

-"A-

16.110

■

Flotations

Calendar of New Security
Whiting, Weeks & Stubbs, Inc.—8,085
O. H. Wibbing & Co
——2,695
The

Wisconsin

Dean

Co'.

Wood

24,255
——43,120
5,390

Witter

Harold

debentures ($4,125,000 prin¬
cipal amount due 1950, at 104%; $4,535,000
principal amount of the 1938 Issue al
102%), requiring $8,947,663.
Balance oi
net
proceeds will be added to working
capita!

000

the SEC for 5,620,-

statement with

tration

par

with the SEC to its reg¬
istration
statement
disclosing
that the
bonds would bear interest at the rate oi
amendment

3%%
per
annum.
The public offering
City, price of the bonds and the preferred stock
N. J.
;
■:7.V*.-. .77'7:' will be supplied by later amendment
Also disclosed in the amendment is the
Business—Company is a mutual invest¬
names
of the underwriters for the bonds
ment company
'
and
preferred stock,
together with the
Underwriting and Offering—The shares
amount
of „each " issue
underwritten by
registered will be sold to the public at asset
each, as follows (all of New York City,
value plus a distribution charge; Distribu¬
unless otherwise indicated): 7:'7v7;:7i7 >7 if
tors Group, Inc., is the underwriter

■.value

/. v
' •••
Exchange PI.,
Jersey

■,

Address—1

cent

stock,

capital

filed

has

Filed—Company

Amendment
an

■

777.

■

„

investment pur¬

Proceeds will be used for

poses

(2-10-42)

A-l

Co.+-$1,700,0007j|: 8,000

8,000

1,700,000

Goldman, Sachs Sc Co..
R. S. Dickson Sc Co—

...

;

E. Hutton

prin. amt. No. of shs.
of bonds of pref. stk.

77
7:

•:.

Registration Statement No. 2-4944. Form

127,000
600
Phila.—, 425,000
v 2,000
Field, Richards & Co., '7777.

Drexel & Co.,

OF OFFERING
UNDETERMINED

DATES

a list of issues
statements were filed
ago, but whose
have not been deter¬

below

present

days

dates

offering
mined

us.

York,

principal underwriter; others to
by amendment.
Underwriting

named

is $2.25 per share.
Offering—Preferred stock to be offered
amendment.
Proceeds—$300,000 to prepay outstand¬

ing bank loans; $200,000 for purchase ol
additional machinery;
balance for plani
and working capital.
Registration Statement No. 2-4851. Form

additions

(9-27-41).
company

the public

offered

of $1.37%

preferred stock will
by the following

cumulative convertible
be

50,000

its

that

closing

underwriters:
Shares

■■

Jackson

12,500

& Co
Curtis

Weld

White,

Beane

Rollins

Co._

—

tive date

Tully & Co—
Cohu
& Torrey—
Fuller, Cruttenden & Co
Mitchum,

CORP.
regis¬
tered
$28,000,000
serial debentures,
due
1942 to 1951, and $92,000,000 sinking fund

v-;

■-■

GAS

Columbia

debentures due 1961

Class

Co.

par

620

Ten

registered 16,004
common stock
Pryor St. Bldg.

named

Underwriter—None

1952;
notes

will

price to

sold

Registration Statement No. 2-4714.
(3-28-41)
7.7' 777777

For®

Fuel Gas Co., fi
subsidiary, from the holders thereof: and
to make
a
$3,402,090 capital contribution
to Cinn., Newport Sc Covington Ry Co. to
enable that Company to redeem its out¬
standing $3,303,000 1st & Ref. 63. 1947
Registration Statement No. 2-4736. Form

Proposed offering as amended Dec. 10,
1941, 9,000 shares at $54.25 per share
Amendments filed Nov. 21, Dec. 8, and

1941,

26,

defer

effective date

filed Nov.

21, Dec. 8, Dec.

and Feb. 7, 1942

Amendments

Oil

Elmore

Address

Offering—The

share,

per

Proceeds

—

For

be offered public¬
selling commission,

development equipment

property

mining

operation

and

neat

Registration Statement No.

2-4571. Form

1941
19, 1942 to defer effective date

and Jan.

filed Dec.

Dec. 31,

Champion Paper Sc Fibre Co.
with
SEC
$8,500,000
of
first

registered

mortgage
1, 1956 (interest rate t«
be filed by amendment); 40,000 shares $1
cumulative convertible preferred stock, no
par:
and
an
indeterminable number of
shares of no par common stock, to be re¬
served for Issuance upon conversion of th«
Nov.

preferred stock
Address—Hamilton,

Hearing
statement

of paper known in the trads
and book papers, and ii
of the largest domestic manufacturers

the

types

white

one

papers

1942
Registration Statement withdrawn Jan.
12, 1942 and stpp order proceedings dis¬

Underwriters

Goldman,

are

Sachs Sc

Hutton

Co.,

both of New

Offering—The bonds and preferred stock
will be offered to the public, at prices to
supplied
Proceeds

LIGHT

Light

CO.

by
will

■

$100

Stock,

Co.

Debentures,

the

Interest

Par.

and

Bonds

rate

rates

the

dividend

the

and

preferred stock,

will be

sup¬

plied by amendment

Power

Second

Ave.,

Miami,

subsidiary

American

(Electric Bond & Share
operating public utility en¬

Light

System)

gaged principally in generating, transmit¬
ting, distributing and selling electric en¬
ergy

east

and sale of gas),
territory along the
(with exception of
Jacksonville area), and other portioni
(also

the

Florida

Offering—The securi¬

Underwriting and

registered are to be sold by company
the competitive bidding Rule U-50

the

SEC's

Public

Utility Holding Com¬
pany
Act.
Names of underwriters and
price to public, will be supplied by posteffective amendment to registration state¬
will

Proceeds

follows:
$53,170,000 to redeem at 102 Vi, the $52,000,000 of company's First Mortgage 5s of
1954; $15,693,370 to redeem at $110 per
applied

142.667

the

company's

stock, no par.
Further de¬
be
supplied
by
post-effective

preferred

tails

amendment

Form

(9-17-41)

Standing aggregate of $8,660,000

out-

of 4%%

value common
to the pub¬

par

be offered

tools, machinery and equipment.
Registration Statement No. 2-4844.
(9-17-411
Effective-—4:45

1941

2, Jan. 20, and Feb. 6,

1941,

1942 to defer

HAMILTON WATCH CO.
Watch

Co.

7.7;;77-777,7',.

111.

subsidiary

Business—This

-7
of

Genera)

Macomb,

Lincoln,

Belvidere,

7.7''"7"7

Bonbright & Co., Inc.,
York 7.———. $2,875,000

New

Webber & Co.,

Paine,
7

7
!

9,000

2,156,000

York

New

12,000 %

Los

3,000

719,000

Angeles

statement

and

Proceeds

from- sale

.7 7- ■
of the

■

bonds

...

and

preferred stock, together with $105,000 re¬
ceived from sale of 7,000 additional shares
stock, will be used in part to re¬
tire following securities of company: $5,750,000
First 4 Mortgage
Series A 3%%

105%; 17,098
at $110 per
share;
1,108
shares $6 preferred stock,
owned by parent company, at latter's cost
Balance of net proceeds will be used tc
purchase from General Telephone Corp
the outstanding capital stocks of Centra)
Illinois Telephone Co. and Illinois Stand¬
ard Telephone Co., to make additions and
betterments to company's plant and prop¬
due June 1, 1970, at
shares
$6 preferred
stock,

bonds,

and for other corporate purposes

erty,

Registration Statement No.

Amendments filed Nov. 26,
Jan.

Jan.

;

2-4866. Form

(10-24-41)

A2.

and Feb.

■

the

TELEPHONE

telephone service In
and Tennessee

22, ,1942

Sons, Bal¬
Inc., Richmond, Va.J

Stern, Wampler & Co., Inc., Chicago;
able
Securities
Corp.,
Nashville,

Equit¬

Tenn.J
Ga.; R. S. Dickson
Charlotte, N. C.; Minnich,
Wright & Co., Inc., Bristol, Tenn.

Courts
&

Inc.,

Offering—The 25,000 shares of common
will be offered to the public, at, a

price to be supplied

filed

registration
4%%
$100 par

by amendment to reg¬

The shares are to be
account of the underwriters,
who are to acquire such shares as follows:
Southern Bell Telephone & Telegraph Co.
and Chesapeake & Potomac Telephone Co.
of Virginia, have agreed to sell to above
underwriters, a total of 25.000 shares of
statement.

offered for the

convertible preferred
of company, at a price to

nonrcurnulative

stock, $10

par,

7
7 7 \ 7 , .- ,
Mich,
■r.v7 7* 7 ■
is engaged in the
sale- of service tools for

par value
Address—Detroit,

Business—Company
and

manufacture

by the automotive industry
Underwriters—Baker,
Simonds

use

&
principal underwriter

the

named

Co.,

the

company;

registered

are

remaining
67,917
already issued and

for

used

the

purchase

and equipment and for work4

capital
'< 7
: \ 7-7
v
Registration Statement No. 2-4920. Form

ing

Cleveland)

(12-26-41

filed

Amendments
1942 tp

defer effective date

NORTHERN

Natural

Address

—

Nebraska

26,:
7

Co.,

and .othen

to be named by

amendment
Offering—Stock will be publicly offered
price to be filed by amendment
,
Proceeds—All

Railways
and

proceeds

stockholders,

selling

Co.,

Power

and

will

United

North

received

Light &
Light

American

Co.

Registration Statement No. 2-4741. Form
A-2.

(4-21-41)

Northern

amendmeht

Natural

its

Gas

Co.

E.S.T.

a.m.

Dec. 6,

purchase of
Deo. 16, 1941

DISTILLERS

Distillers

statement

CORP.

Corp.

with

1941

bonds

the

filed

the

SEC

regis¬

for

$10,-

together
stated

from

sale

the

with

amount

net

the

debentures,

proceeds

short-term

bank

un¬
loans

procured by company prior to or
concurrently with the issue of the deben¬
be

tures,

will be applied to payment of all
present
bank
loans
of
company.
of such
bank loans outstanding

Amount
on

Aug.

31,

1941,

was

$24,000,000

filed

A2.< (12-30-41)

filed

Jan.

13,

disclosing

3% % for the $10,000,000
10-year sinking fund debentures, and a
coupon rate of 4% for the $17,500,000 15-

will

provisions of

000,000 10-year sinking fund debentures,
due Jan.- 1, 1952, and $17,500,000 15-year
sinking fund debentures, due Jan. 1, 1957.
Interest rates will be supplied by amend¬
ment to registration statement
7
Address—350 Fifth Ave., New York City
Business—Company and its subsidiaries
are
engaged generally in the distilling,
blending, rectifying, producing, warehous¬
ing, bottling, buying, selling, exporting and
importing alcoholic products for beverage
purposes, principal business being produc¬
tion and sale of rye, bourbon and blended
whiskies in the United States
V..

coupon

transmissior

and

Underwriter—Blyth

the

the
on

Amendment

$20 par
Omaha

and

indenture

with
•

Registration Statement No.'2-4925. Form

Co.7 registerec

Gas

Business—Production

Schenley
tration

CO.

of common stock,
Aquila Court Bldg.,

of natural gas

Jan.

GAS

NATURAL

Northern

710,500

and

received

SCHENLKY

the

Jan.

•

for

bids

Proceeds

will

of machinery

62.

were

The public offering price Is $4.20

per share
Proceeds

bonds,

Underwriting—Mellon
Securities
Corp.,
Pittsburgh,
is
named
principal
under¬
writer; names of others will be supplied
by amendment
7
7
7
Offering—The debentures will be offered
to the public, at a price to be supplied by
amendment
,7
«
)

♦

Offering—24,875 shares of common stock
will be sold to the public for the account

■"

Co., Atlanta,

Co.,

has

Co.

series

accordance

(11-22-41)

registration
statement with the
92,792 shares of common stock.

for

the

Effective—10

J
^

Manufacturing

Tool

Miller

filed
SEC

CO.

MFG.

registra¬

first mortgage series A 4%

indenture

A2.

Jan.

7 7K 7V.7.7-.,.

7v7

TOOL

MILLER

amendment

plus

Registration Statement No. 2-4893. Form

of participating preferred stock of
company-;' •
;:'77777y>v7777;
Registration Statement No. 2-4912. Form
A2. (12-12-41)
\ 7,- '■
./ 7 '7 •
7. 77'7j.
Amendments filed Dec. '27, 1941 and Jan:
13, 1942, to defer effective datev
" ' '
t

Underwriters—-Alex. Brown &
timore; Mason-Hagan,

the

withdrawn

competitive bidding

statement

used

sale

Statement

Offering—The bonds

the

p.ost-effective

under

now

Co.

Registration

and

under

Company Act. Names of underwriters,
public offering price, will be supplied

exchange for or

Dresser

and

Sept. 1, 1969, at 106% and accrued
interest; and $4,000,000 of the net pro¬
ceeds will
be • deposited with the trustee

to dispose of such shares either)
to utilize the proceeds*
thereof for the purchase ol,

company

Co.

due

Merchants
&
Manufacturers;
It is present intention of

Securities

Corp.

sold

Indiana

assist

holders.

Business—Supplies

owned

Finance

Electric

Company

other funds of company
If necessary will be applied to redemption,
within 40 days after issuance of the bonds,
of the $38,000,000 of Public Service Co. of

thereof

covenants

from

Northern Indiana Power

Co.,

Haute

Proceeds,

62,484 shares of common

Domestic

Co.

sale of water;
be

tion

1942 to defer

portions of Virginia

release
exceed

Indiana

result of consolidation ol
of Indiana, Central In¬

Corp.

Indian¬

St.,

Dec. 15, 1941,

CO.
Inter-Mountain Telephone Co. filed reg¬
istration statement
with SEC for 25,000
shares common stock, voting, $10 par value
Address—Sixth and Crumley Sts., Bristol,
Tenn.

permit
not

stock

Illinois

and

outstanding, and will be sold to the pub¬
lic for the account of certain selling stock¬

effective date

INTER-MOUNTAIN

ing

preferred stock to
be offered to the public at a price to be
supplied by amendment to the registration
Offering—Bonds

reg¬

Rule U-50 of the SEC's Public Utility Hold¬

in obtaining such assents. Major
modification of indenture being sought is;

pfd. stk7

Underwriting
will

issued.

been

have

debentures

Power

Terre

and

its

Burris Si Co.,r Chicago, is to

INC.

$42,000,000

is a public utility
operating In State of Indiana and is en¬
gaged principally in production, generation,
manufacture, purchase, transmission, eupply distribution and sale of electric energy
and
gas,
and in the supply, distribution

Securities

the

1941,

Service

diana

for

which

;•

no. of

Public

company

Shs. of

Amt. of

Address—110

Power

Smith,

each, fol¬

SEC

apolis, Ind. '
Business—Incorporated

Forts

principal amount thereof to modify cer¬
tain
provisions of the indenture under

Har-

risburg, Olney, Mendota and Mt. Carmel
Underwriters, and amount of bonds and

with

first mort¬
gage series D 3% % bonds, due Dec. 1, 1971

subsidiaries, is
engaged in the small loans business
Underwriting and Offering—The deben¬
tures are outstanding in the hands of the
public and have been registered with SEC
under Securities Act of 1933 solely for the
purpose
of obtaining the assent of the
holders
of not less than a majority in

Co. is engaged In providing,
without competition,
telephone service to
5.80
communities and
surrounding terri¬
tories in Illinois, including Kewanee, Mon¬
mouth,

istered

cago, 111.

Springfield,

St.,

PUBLIC SERVICE CO. OF INDIANA,
Public Service Co. of Indiana, Inc.,

Sept. 6,

Business—Through

Registration Statement No. 2-4929. Form
A2 (1-9-42)

registration statement with

company is to receive not less
for the bonds and not" less than

outstanding funded debt of the com¬
and Erie Lighting Co. and for prop¬
erty additions -v
f~

$1,081,000 of 10-year 4%%
debentures, due Sept. I. 19R0
Address—231 South La Salle St.,- Chi¬

Telephone

cumulative

stock,

filed

SEC

the

7
Adams

103

pany

MANUFACTURERS

public

the

P.M., E.S.T., on Oct, 8
P.M., E.S.T., Oct 8. 1941

SECURITIES CO.
Merchants & Manufacturers
Co. has

par

the

Co.,

TELEPHONE CO
Illinois Commercial Telephone Co. regis¬
tered with SEC $5,750,000 of first mortgage
3% % bonds, due Oct. 1, 1971; and 24,000
shares of $5 cumulative preferred stock

statement with SEC for 39,382 shares

preferred

of 4:45

MERCHANTS

Address—607

that
than

A-l.

Registration Statement No. 2-4890. Form
(11-19-41 Cleveland) V -'7.7>7777'7
Amendments filed Jan. 8 and Jan. 24,
1942 to defer effective date

and

underwriters

$100 per share for the preferred stock
Proceeds will be used to redeem all

preferred and 10 shares of com¬
Re¬
64,531% shares common reserved
for issuance on conversion of the preferred
Proceeds for working capital,
purchase

Names

offering prices will be supplied by amend*
to
registration statement.
The In¬
vitations to bid for the securities specify

stock, at price of $140 per unit.

mon

A2.

Act.

capital

istration

Amendments filed Nov. 27, Dec. 15,

Hamilton

amendment
be used to redeem the

$20

ment

maining

stock

Registration Statement No. 2-4845.

Jan.

selling

chase

ment

certain

corporate purposes, including pur¬
new equipment
and for working

general

manufacture

most

coast

Florida

Proposed offering as amended:
23,100
shares
by company,
105,756 shares by
certain stockholders 1
77v:'77'7/
Public offering price Is $9.50 per shar#
Proceeds to
company will be
used for

common

registered
with
SEC
$45,000,000
First
Mortgagi
bonds, due Oct. 1, 1971; $10,000,000 Sink¬
Power

effective date

York, N. Y.

EST on Jan. 6, 1942

4:45 p.m.

POWER

',7

FLORIDA

A2.

of coated papers

and

on
suspension of registration
postponed from Dec. 22 to Jan.

Effective

De¬

Corp.,

Mitchum, Tully & Co.,

(10-21-41)

share,

Business—Largest domestic manufacturei
as

of 0

drilling

for

under

CHAMPION PAPER A FIBRE CO.

due

used

for working capital
Registration Statement No. 2-4864. Form

ties

bonds,

stockholders

offered to
at $5 pet

shares will be
by company,

will

Proceeds

A-l.

Higbie

account

for

public

additional wells, the equipping of a certain

the

(11-12-40)

Amendments

Bonds

serving

Breckenridge, Colo.

direct

public

Mich.
: -77/ 777a '7'
;o7'''";'7v
Offering—23,100 shares are unissued and
are
to be offered to the public for the
account of the company; remaining 117,300
shares are outstanding and are to be sold

preferred stock underwritten by
low;7
7 7:77'''

Fla.

milling

15*

A-l.

Business—This

will

Offerlnr—Stock

own«

Underwriters—None

Underwriter—None

business,

oil

the

oil and gas leases and
Brown and Jack Counties,

Address—25

and

Business—Engaged

buying, selling oil and/or gas leases;

the

Carlton

Stock, $100 par, and
stock, $1 par
Louis
Municipal

common

Lambert-St.

—

Airport, Robertson, Mo.
Business—Engaged in designing and deand
selling
parts, for
aircraft;
expect!
presently to engage in business of manu¬
facturing, testing and selling aircraft
Underwriting—None.
Securities
to b»
offered by company
':77,
Offering—Of the shares registered, thi
6,453 Va shares of preferred and 64,531%
shares of common, will be offered to pub¬
lic in units each unit consisting of om

Rockefeller

troit,

offer is made
Stevens-Harle
Bldg., Durant,

—

Address

piston

sells
■

129,063%

Inc.,
are
principal
underwriters.
underwriters are Smith, Hague &

and

Co.

registered

Corp.

Okla.

Colo.

Business—Mining

1942, to

Fund Debentures, due Oct. 1, 1956;
and
140,000 shares Cumulative Preferred

AND

MINING

Dec. 6, Dec.

18,

and Jan. 31,

12
date

defer effective

ing

MILLNG COMPAN1
Bear Mining and Milling Co. registered
163,145 shares of common stock, $1 pal
Address — 513 Majestic Bldg., Denver,

BEAR

filed Nov.

Jan.

1941,

24,

ILLINOIS COMMERCIAL

(4-10-41)

A-2.

Florida

26, 1941, Jan. 12, Jan. 29,
to defer effective date

.'•«

United

notes

continued

A-2.

Dec.

guaranteed

$3,750,000

and

subsidiary,

serial

lease, and

will be offered to pub¬
be filed by amendment
Proceeds—All proceeds will be received
by L. A. Cushman, Jr., chairman of board
of company, for whose account the stock
at

$4,750,700 Deb. 5s, due April 15,
$50,000,000 Deb. 5s,
1961; to pur¬
$3,750,000
4%
guaranteed
serial
due 1942-46 of Ohio Fuel Gas Co.,

1952;

Deb

$50,000,000

redeem

Proceeds—To

Offering—Stock

lic

com¬

Co.,
Other

and distribut¬
souther states

products

bakery

Y. C.
holding

Tex.

Atlanta, Ga.
Business—Manufacturing
ing

utility

777 7 7.7 777. .77-S;
v.W'V-■Offering—Both issues will be publiclj
offered at prices to filed by amendment

equipment

Address—No.

Broadway,

Business—Public
pany

tofore and rescission

Corp.

and operates certain

BAKERIES CO.
Bakeries

Electric

with SEC
14,000 shares common stook, $5 par value
of which 1,376 shares have been sold here¬

'"^0^7,7'
Feb. 3,

1942

American

ELECTRIC

ELMORE OIL CORP.

Registration Statement withdrawn

AMERICAN

Address—61

Convertible Preferred

par
value
Address—Hastings, Mich,

Business—Manufactures and

and expanders
1
Underwriters—Schroder,

1.500
1.000
1,000

1942 to defer effec-

1941 and Jan. 16,

tive date

5,000

rings

Gas

COLUMBIA

25, Dec. 13, Dec.

Amendments filed Nov.

30,

—

Sc Co.

Vietor Common

1,000

California

Pacific Co. of

Jan.

4,000
4,000

Sons

127,000 7, .' 600
340,000
1,800
Dec. 27, 1941,
and Jan. 30, 1942, to defer effec¬

Amendments

10,000

Wampler

1,600
2,400

Amendments filed Dec. 9,

Pierce, Fenner &

Merrill, Lynch,
Stern,

._10,Q0Q

340,000
511,000

White, Weld & Co

chase

has filed an amendment
to
its
registration statement with th«
Securities and Exchange Commission dis¬
The

400
3,600
4,000

Minneapolis-

wood,

its

proposed

85,000
765,000
850,000

Piper, Jaffray Sc Hop-

commission

A-2.

777/

Corp.-

Higginson

Lee

stock

1,600

340,000

C. Langley & Co._

Inc., registered with SEO
$1.37%
Cumulative Con¬
vertible Preferred Stock, no par; and maxi¬
mum
of 100,000 shares $1
par common
stock, latter reserved for issuance upon
conversion of the preferred. \
<7 .'7, 7,
Address—Bendix Airport, Bendix, N. J.
Business—Company is manufacturer and
distributor of
airplane parts, equipment,
material, supplies and accessories.
Underwriter—White, Weld & Co., New
Air Associates,

50,000

4,335 shares by latter).

1,200

255,000

Space
& Co., Savannah
Kidder, Peabody Co.Kuhn, Loeb & Co
Lane,

Johnson,

„

Noyes po._
& Weeks

Hornblower

INC.

ASSOCIATES,

AIR

unknown

are

Ripley

Hemphill,

Co.

Harriman

whose registration

twenty

Corp

Boston

400
2,000
2,000

85,000
425,000
425,000

Cincinnati
First

manufactures and
high grade (17 to

Underwriters agree lic has been reduced from 710,500 sharet
to 355,250 shares.
According to the amendr
that immediately following delivery to them
23
jewel) pocket and wrist watches for
ment, such 355,250 shares are those thai
of such shares of preferred stock, each will
men
and wrist watches for women
are
convert same, share for share, into a total
presently
owned,
and
outstanding,
Underwriting and Offering—Company is
of 25,000 shares of common stock of com¬
by North American Light & Power Co.,
making a conditional offer to holders of its
and are to be offered to public for the
pany
■
7 ; '.77.■71'Z.i
7
32,054 shares of outsanding 6% preferred
Proceeds will be received by the under¬
account of
American Light Si Power Co.
stock of the privilege of exchanging such
writers
The 355,250 additional shares orglnall*
.:^V7 7777V7p:Y7:/7'7 77 7*777
stock for 33,054 of the 39,382 shares of
Registration Statement No, 2*4908. Form
registered with the SEC on April 21, 1941,
4 % % preferred stock on basis. of one share
A2. (12-6-41)
;7;77777';77t7 7 - 7.7 for public offering, and withdrawn from
of 4% % preferred stock, plus $1.50 (equal
Amendments to defer effective date filed
registration were subsequently registered
to
current - quarterly
dividend
payable
Dec. 22, 1941, Jan. 9 and Jan." 27, 1942
and became effective.
These shares consti¬
March 1, 1942, on one share outstanding
tuted the stock outstanding and owned bj
6%
preferred
stock), plus an unstated LA CROSSE TELEPHONE CORP,
United Light & Railways Co., a subsidiary
amount (difference between the public of¬
La
Crosse
Telephone Corp.
registerec
of United Light & Power Co.;777
" 7
fering price of one share 4%% preferred
32,080 shares of common stock, $10 par
stock and $105, the redemption price of
Address—La
Crosse, Wisconsin
7 7
PENNSYLVANIA ELECTRIC CO.
7
the 6% preferred), for each share of, out¬
Business—Telephone service to La Crosse
7 Pennsylvania Elebtric Co. registered with
standing. 6%
preferred stock.
Exchange Wis.'
SEC $32,500,000. first mortgage bonds, due
v
7,7.!.■>
7;'"7;.(-/
offer expires Jan. 22, 1942.
Any shares of
Underwriter—Alex.. Brown St, Boos
Jan.. 1, 1972, and 34,000 shares Series A
4%% preferred not issued under the ex¬
cumulative preferred stock, $100 par. The
Offering—All
stock registered
will bt
change offer,
plus the 6,328 shares not
interest rate on the bonds and the dividend
publicly offered at price to be filed bj
reserved for such exchange offer, will be
rate on the preferred stock, will be sup¬
amendment, except that 2.406 shares will
offered
to the public, at a price to be
be sold
to Central Electric & Telephone
plied by amendment to the registration
supplied by amendment.
Harriman Ripley Co.
' .:777V77;7^ 77'77;7/:77V7>'77 statement
!
6 Co., Inc., .Philadelphia, is named prin¬
Proceeds—Stock registered is owned b)
Address—222 Levergood St., Johnstown,
cipal underwriter; other underwriters will
Pa.'
''. 7777;: 77/:V'7;777: 7;a'7'-:7 7
7
parent
company,
Middle
Western
Tele¬
be supplied by amendment.
<
phone Co., which will donate a portioD 7 Business—This company, controlled by
Proceeds
will be used to
redeem, on
to La Crosse Telephone Corp. and lattei
Trustees
of Associated
Gas
&
ElectriO
March 1, 1942, at $105 per share, all out¬
will
use
proceeds
to retire outstanding
Corp., is engaged chiefly in the production,
standing 6%
preferred stock; balance for
preferred stock 7.
purchase,
transmission,
distribution
and
.7
expenditures in connection with construc¬
sale of electricity for lighting, heating, in^
Registration Statement No. 2-4717. Form
tion and equipment of plant additions
A-2.
dustrial and general utility purposes, servi
(3-29-41)
'
Registration Statement No. 2-4926. Form
Amendments filed Nov. 19, Dec. 8, Dec.
ing a territory in Western Pennsylvania
S2 (12-30-41)
the Md.-Pa. State line
26, 1941, Jan. 14 and Feb. 2, 1942, to defer extending '-from
Amendment filed Jan. 29, 1942 to defer
effective date
■'7777';;77;77J.77v: northerly to Lake Erie
effective date
7""'7-7-" ,7;'" 77; 7>
Underwriting and Offering—The bonds
VlcDONNELL AIRCRAFT CORP,
and preferred stock will be sold by comiHASTINGS MANUFACTURING C0.7..777'
McDonnell Aircraft Corp. registered with
pany under competitive bidding rule U-50
Hastings Manufacturing Co.
registered
SEC
6,453 Va
shares
6%
Non-Cumulative
of SEC's Public Utility Holding Company
with SEC 140,400 shares common stock,
of

models

various

sells

A.2.

7'
Group Securities, Inc., has filed a regis¬
SECURITIES, INC.

GROUP

Statement No. 2-4867. Form

Registration
(10-25-41)

SUNDAY, MARCH 1

Business.— Company

supplied by amendment (20,665 shares
such
preferred to be sold by former,

Pa.

Address—Lancaster,

fund

sinking

Thursday, February 12, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

662

registration' fetatemeht

rate

year sinking fund debentures
The amendment named the underwriters
of

the issues

follows:

Mellon Securities

A. C. Allyn &
Co.; Blair & Co.; Blyth
& Co.; Bonbright & Co.; Central Republic
Co.; Dean Witter & Co.; Dillon, Read Sc
Co.; Eastman, Dillon & Co.; Emanuel &
Co.; Estabrook & Co.; the First Boston
Corp.; Hallgarten & Co.; Harris, Hall &
Co.; Hayden, Miller & Co.; Hemphill, Noyes
& Co.; J. J. B. Hilliard & Son; W. E. Hut¬
ton Si Co.; Jackson & Curtis; Kidder, Peabody &' Co.'; Kuhn', Lo'eb & Co.';' Lazard
Corp.;

Alex Brown & Sons;

Co.; Bear, Stearns &

Volume" 155

Number 4045

•

-&■' Co.-;

Freres

Higginson

Lee
Loeb,\' Rhoacles

Beane;

Moore,

Cairl

Corp,;

Co.;, Laurence

Marks & Co.; Merrill Lynch,
&

THE COMMERCIAL &

Fierce, Fenfter

Leonard ft

Lynch;

new-/preferred
share

stock

for

Co.; Schwabacher ft CO.; Shields & Co.;.
Singer, Deane ft Scribner; Stein Brother*
ft Boyce; >Stohe & Webster and
Blodgett;

may

New Cotton Exch. Members

adj:

the presently out:
stock who do not elect

standing preferred

Moseley & Co.; Paine, Webber & Co.; Parrish & Co.; E. tt. Rollins ft Sons; Riter &

be.issued
(with a cash

basis

to holders

justment)

"At

meeting of the Board of
Managers of the New York Cotton

for

Stroud

Co.;, Tucker,'Anthony & Co.;
Corp.; Wertheim & Co.,
and Whiting Weeks & Stubbs :'■ c-'. V-r-r-'V;: ••
Amendment filed Jan. 31, 1942 to defer
Securities

effective, date

CAROLINA

South

Carolina

SEC

.;'i-

INSURANCE

Insurance

12,500 shares

value

par

' "• ' Y-;..

Address—1400

Co,

CO. i ;!

registered

stock, $8

common

i-.
1 -vn;
1
St., Columbia, SjC.

Main

Btrsh.ess—Engaged
principally
writing of fire insurance
y*,
Underwriting
will

first

and

for

subscription

t?0

subscribed

offered

portion

such

will

public at $18 per share, Mthin
30 days after effective date of
registration
.statement.

Underwriters will.be

amendment;

named

underwriting commission

by
will

stock

000)

eind the

deems
New

residue;

essential

York

State,

requiring

become

capital

effective

(11-27-41)

Amendments
and Jan. 22,
R.

filed

Dec.

H"'

Co.,

Swain

registration
5,000

make

stock,

mon

Class

the

value

par

SEC

for

stock, $1
Class B com¬

Address—rDanville, Va.

Y'j.
Business—Company markets Panax Pro¬
Pinehurst cigarettes, manufactured
for company under its Panax Process
by

cessed

Axton-Fisher Tobacco Co., Inc.
Process

acts

retaining
soothes

the

Panax

membranes

is tasteless

and

offered to

each

the

moisture

demulcent-

throat, and

and oderless

Underwriting
will

The Panax

hygroscopic

agent,

for

Offering—The

the

public

class of stock, by John
Martinsville, Va. yXyVyVY-TL

the

securities

ber

CORP.

SUGAR

Indies

Sugar

Corp.

filed

Address—60
:

stock, $1 par*

common

aifi

the

/tu'surtiit

V-'^Wv^V'

of reorganization of

Sugar

Corp.

and

cer-

without

subsidiaries, is soieiy a hold*
Company
owning
the
securities
of

and blackstrap molasses
Repub.ic and.Cuba
:

invert

and

the

Dominican

will

named

Sfational
the

Bank

City

former

remaining

The

aggregate

states

stock

mon

the

Proceeds

will

.1..

received

Registration
A2;

Statement

for plant
additions,
purchase of additional equipment, and

for

working capital

Registration Statement No. 2-4928. Form
(1-9-42)
;;

TEXAMERICA

OIL

Deduction

Address

Milam

—

Bldg.,

San

Antonio

Tex.

Business—Engaged

production

and

marketing of crude oil,
acquire mineral
leasehold interests In producing or proven
oil
properties in
Texas,
drilling of oil
wells thereon, acquire royalty Interests it
and

proven

developed

oil

Underwriter—Willard

tonio,
750

Tex.,

has

$1.75

Offering—118,907
to

public

984

San

An¬

purchase 44,share and 74,157

company.

offered

July

dends.

Governor.

Percy

Registration
A-l.

Statement

(8-27-41)

No.

Form

2-4824

-■

UNION LIGHT, nEAT AND

POWER COM¬

PANY

income

Magnus,
York

will

nailed upon this year by the Fed¬

government for great.finanT
cial sacrifices to pay only a part
war

effort."

He adds that

'we are not unmindful of the part
that the State is taking in the Na¬

tional

Defense

States'

and

Program.

cities'

But,
should

costs

yield to the requirements of the
Federal

government."

is "the

Union

Light.

Heat

gistered

25,000

and

Power

$100

Co.

par

common

stock

Address—4th

Main

St.,

Ohio

Operating

—

Columbia

—

Gas

ElectrP

Corp.

Offering—Stockholders
fer

mon

for

each

for

each

holders
for

receive

of¬

25/94ths of one com¬
units of 6/94ths of a share

may

held

unit.

each

will

5/94ths

share held

basis,

to the

share?

new

$100,016 per

Columbia

parent

Gas

Proceeds—To

$2,835,000

Electric

costs

•

Registration Statement No. 2-4378. Form
n-30-40)

A-2

filed

Nov.

25,

Dec.

31, 1941, Jan. 19 and Feb. 7,

13, Dec.

VIRGINIA

Virginia

Public

istration

Service

$22,80*0.000

first

1971;

Dec.

notes,
1,

1944-Dec.

5(4%

mortgage
$5,700,000

andria,

•

;

Va.

electric
the

■

•

Washington

St.,

■>"
.

public

operating

utility

and

distribution
retail and

engaged

and,

Carolina.
Gas

Virginia<: West Vir¬

mihor

Company is
Electric

extent,

Associated Gas

ing

company system

which

Corp.,

Electric
.

will have in

the

note

To cite;one
tions

duction

mean

the

and
a

not

mental

State

tne

re¬

case

including

does constitute

Continu¬

Amer¬

American

ears

A.-

O'Neil, American
Federation, Chi¬

National

Patton,

Union. "

the

total

Board

Jan.

1" this

had

Insurance

is done at present.

ABA

and

include

1,800

non-Axis " companies,

Axis

the

along with

have

and

can

Mortgage Clinic

Savings

Division

the

Division's

President,

who

Vice-President

lows

the
pattern
of
informal,
"question and answer" discussion

of real estate and

mortgage prob¬
during the ses¬
sions of the previous conferences.
The

established

theme

War
of

the

Mortgage

clinics, "ReaL
Finance in the

Emergency," will also be that

the

San

Francisco

Conditions,"
Insurance

with

"Current Legal

Problems

Effect

of Price

these

the

under the
M.

Con¬

Loans,"

four

Finance

principal
on "The

general forum
War

Economy on
will be held

Mortgage Lending"

y,V;

Mortgage

"Mortgage Lending Practices
Today."
Following open dis¬

Federal
Corporation. topics,

: >

sessions.

Major topics of discussion are to
be "Financing Defense Housing,"
"Mortgage Lending Policies Under

Fisher,

leadership of Dr. Ernest
ABA Director of Re¬

in Mortgage and Real Es¬
tate Finance.

of Agriculture.

•

B. R. Stauoer, Office

Use
of

Agriculture,

Seaboard RR.

of Land

11 Wall
Street, New York City, specialists

W. B. De Haven Dead

stock

may

the

Haven, who

of 65.

age
was a

securities, have prepared
circular

Seaboard

be had from the firm upon

request.

Philadelphia and New York
brokerage.firm, died at his

home

rail

special

divisionals and leased lines, which

■

William B. De Haven, partner
in De Haven & Townsend, promi¬
nent

Interesting

L. H. Rothchild & Co.,

Department

Coordination,

broadened 'to

get

rubber

5,264

can

Corporation.
Headquarters for the clinic will
McCandless,
Deputy
be the St. Francis Hotel in San
Comptroller of the Currency.
Francisco.
Eric EngluM, Bureau of Agri¬
cultural Economics, Department
R.

such

what

cussion

Charles B. Henderson. Recon¬

amount

the

pile.

get," he added.

C. B. Baldwin, Farm Security

struction

U. S. Blacklist Extended

added

stock

and

Harold Rowe, Office

airconditioned : passenger
cars
in
operation, or an increase of 25
compared with Jan. 1, 1941.
year

care

nection

Donald S. Thompson,

Deposit

was

Class I railroads on Jan. 1,
1942, had 7,523, an increase of 562
compared with the same date last
year. ^The Pullman Company on

been

year, but we can get

and

v
Secretary,
Governors, Federal

Reserve System.

by the Asso¬

number

had

normal

War

Goss, National Grange,

Washington, D. C.
Chester > Morrill,

equipped. ^

received

70,000 had been

"I do not think

lems

Babcock, National Coun¬
Farmer
Cooperatives,

James

This

tons

Government's

Estate

Farmers'

cars,

•

of imposing a "tax upon a
as

York

111.

H. E.

cil

tax,1'J

New

Association.

Bureau

cago,

govern¬

1,800 In Europe
We sincerely trust that irre¬
The
State
spective of the consequences of
Departmentan¬
the necessities.of imposing new nounced on Jan.
14 that
"The
-taxes to make up deficits, that Proclaimed
List of Certain
-; the
State will clear this sys¬ Blocked
Nationals"
has
been
h

Farm

(

tem

Co.,

Thompson,

Edward A.

the Pull¬

Feb. 6.

tons

114,000

In San Francisco

Association

Otis

ciation of American Railroads and

public

the

American Bankers Association, is
announced by Stuart C. Frazier,

Bankers'

ditioned passenger cars in opera¬
tion on Jan.
1, 1942, according

reports received

now

in jeop¬

sold, while the remaining 44,000

following:

Insurance

Bankers'

Company had 12,787 air-con¬

right.

Mr. Jones said

the

ica.

reduction in

and

tons

are

Life
Insurance
Co., mortgage conferences under the
auspices of the Association's Sav¬
Dallas, Tex. ■ v :
Invitations to at¬
Howard Cox, Union Central ings Division.
tend the clinic have been extended
Life Insurance Co., Cincinnati,
to
the
banks of Arizona,
Cali¬
Ohio.
Colorado, Nevada,
New
S. M. Waters, Mortgage Bank¬ fornia,
Mexico, Utah, and Wyoming.
ers' Association.
The program for the clinic fol¬
Eugene R. Black,- Investment

mvv;;v.:'

railroads

3,900

Philippines

western

Passenger Cars
I

1,850

Executive

Air-Conditioned
Class

placed losses of
ship sinkings at
tons, but told the

of the
waukee, Wise.
F. W. Hubbell, Equitable Life Washington Mutual Savings Bank,
Seattle.
The San Francisco clinic
Insurance
Co.
of
Iowa,
Des
is the fourth to be held in a na¬
Moines, Iowa.
tionwide
series
of
real
estate
Charles F. O'Donnell, South¬

received

costs.

from

ardy.

H. D. Thomas, Northwestern
Mutual Life Insurance Co., Mil¬ the

automobile

local

and

eacn

Ithaca, N. Y.

must
a

only

possibilities

City.

Federal non-defense expenditures

senger

ing and a grievious wrong.

■

Life

by the Federal and State govern¬

and

amounted

Westbrook, Aetna Life
Completion of the program for
Co., Hartford, Conn.
the real estate mortgage clinic to
Bestor, Prudential Insur¬
be held in San Francisco, Calif.,
ance Co., Newark,
N. J.
Glen E. Rogers, Metropolitan Feb. 26-27, under the sponsorship

ments."

that

Henry Abbot In New York

Mr. De

member of the

Henry

Abbot

has

Broad

Street,

opened

New York Stock Exchange, made

offices

his

York Gity, to engage in a general
securities business.

headquarters

linn's

his

firms New York office, 30 Broad Street.
'

■

;;

■

•

'•

said.

policies.

considerable

revenues

have

since

Paul

example, the restric¬

autos

tires will

agreed

be¬

Insurance

felt by

effect

Actual deliveries

rubber

lending groups represented wouia
name a representative to
partici¬
pate in future meetings.
Tney

income,, the amounts paid
the
Federal. Government,

that

North

subsidiary of Gen¬

is in
Corp. hold¬
V v "
Underwriting and Offering—The securi¬
ties registered will be "sold through-com¬
petitive bidding, under the SEC's coihpetl-"
live
bidding
Rule
U-50
of
the
Public
Utility
Holding. Company Act.-; Only ex¬
ception is confined to such shares of the
the

was

during

pinch brought

will

too

per¬

imposition of a new tax
would not a wrong—if it is nec¬
essary to meet a State ekpense.
But
every
succeeding year
that the State imposes and colnet

purchase, transmission,
sale of electric energy at

wholesale fti

This

are

taxes

new

lects its incofne tax;

production,

Administration.

The

Alex¬

principally

found.

the

30,000 and 40,000 tons

tons.

stabilizing land values through
uniform farm appraisals. At
that time, says the
Department,

passenger cars on Jan. 1, 1941, at
which time there were 12,200 pas¬

..?•

meet¬

He esti¬

production

to 114,January, receipts
amounted to 76,000 tons, while
shipments totaled 58,000 tons,

period

and

way,

State

the

that

where two wrongs make a

Business—Company

eral

amounts
70,000 shares

an¬

Administration.

Dec.

000

other

available

that

tween

mortgage

mittee is the outgrowth of

increase of 587 compared with
the
number
of
air-conditioned

the Dutiih East Indies.
mated

in the

the right
We have heard

afford

mitted—then

bonds,
June

ment

made

that if these deductions

preferred stock, $100 par
*628,333 shares common stock,

and

Address—117

ginia

reg¬
for:

2%-3'/a%

due semi-annually
1951,
in
varying

par

SEC

cumulative

value;

heard

and fair thing.

filed

th*.

(from $320,000 to $390,000);

CO.

Co.

with

statement

due

serial

SERVICE

burden.

.The only justification that
cannot

PUBLIC

the

these necessarily stringent

be¬

which

States is continuing to
get all the rubber produced in

committee that

industry and consumers, Mr. Hei¬
mann points out that "the govern¬

high

have

1942 to defer

effective date

level.

While the

and

•

United

consider current agricul¬
tural credit problems.
This com¬

comparison

the defense effort will be

give

tax upon an unprece-

Washington, which
/.v y.::-f. '
Mr^ Jones
said
that
the

stated:

ment to

down to the $40,000,-

was

that which

man.

comes a

-ri

Amendments

companies,

with

war

accounts from

the

repiesentatives

the

and

since

Banking and Currency Commit¬
tee, according to Associated Press

national

Indies

sources

Secretary Jones indicated

lenders, bankers and the Govern¬

there¬

and

-close

mediately effecting

Federal government de¬

tax,

insurance

include the

period ahead."

dented

and

■

but it is

•

debt

mortgage bonds held by
associated companies, aim for

and

•

membership of

committee

re¬

rubber

this in testifying before the House

individuals

Administration,

nounced

depressed na¬
tional income was greater than

emphasis to the point this year.
It is not only a "tax upon a
tax," which is wrong in theory,

first

construction

;

of the Federal government

Corp.

current

repay

that

the ability to pay to the
State.. -y The mounting schedules

stock¬

goods

1932-33

services

and

crease

$5.3?

Substantially all outstanding stock is held
by

continues:

and

comnenv

Underwi Iter

letter

taxes, • both Federal
State, rest on the philosophy that each should pay in
proportion to ability. It logical¬
ly follows that the taxes paid

utility

of 506 firms

carries

outbreak

Feb. 3

has

East

Eastern

month.

He added that this justified im¬

Income

electric

the

Dutch

Far

Japan.

Sweden, 196 in Turkey arid
mor;e than 400 in Switzerland ;

hand, the wide variety of goods

paying the taxes."

are

His

Cincinnati

Business

individuals and corporations

same

that

since

makes

come

President of
of Trade,

eral

if "our

war

He added:

.000,000

Board

individuals

list

new

the

tons

Loan

States

114,000

other

America,
subsequently was re¬

viduals. The

Secretary
Federal

United

tne

from

vised and expanded to cover hun^

difficult, nevertheless we should
bear in mind that during those
two years our total national in¬

letter

ceived

dreds of Japanese firms and indi¬

necessity and also the fair¬
ness of this proposal is stressed by
xVIr. Magnus, wno says "it is needess to remind you that corporaand

of $100,-

available

leave

fore

The

be used to pay outstand¬
mortgage indebtedness ($200,000), and
remaining $26,628 will be added to work¬
ing capital
■ ■

still

amount

risen

New York
Urged upon

22 addressed to him

the " New

Proceed*—Will

ing

Federal

Lehman

aatea Jan.

dons

$2,375 per share; remaining
registered constitute shares is¬
1, 1941, by company, as divi¬

computing

State income taxes

sued

Co..

per

from

$2.

properties.

York

agreed

that

transactions.

and the list

Jones,
and

Administrator, disclosed

and individuals in Latin

"Although the price level has

Tax From State Returns
taxes

with

that

income

us,

$50,000,000,000

our

will

services."

CORP.

Texamerica Oil Corp. registered with SEC
shares common
stock, $2 par.

119,891

recognize

equal

"Let

warns.

national

effort

(12-29-41)

our

belt-tightening,"

means

000,000,000,

i yV2-4923.

Urges Federal Income

expecc a con¬

Heimann

current

Proceeds will be used

for

1,800

States

in business

H.v

Commerce

which

original
proclaimed list,
July
17,
1941,
covered
German and Italian firms

under

however,

the selling

No.

u.at

"That
Mr.

•

com¬

will

and

.price

stockholders

Form

parent

outstanding

company,

public,

by amendment

supplied

York,

New

The

United

may engage

financial
issued

the

with

productive
ing called by Governor Black last
capacity to war needs and must
September to explore ways ana
pay increasingly higher taxes to
means of
curtailing speculation in
meet the $50,000,000,000 war effarm real estate, snould sucn
get

is the holder of
17,000 shares
registered.
of
the shares
registered

47.7%

represents
offered

home

"Review of
on
Jan.
17,

reiea-Ld

version of 50%

company,

.he

the

jl.us.Less"

Offering—The
shares
registered
are
already outstanding, and are owned by
City Company of New York, Inc.,. In Disiblution, to the extent of 436,691 shares;
of

sacrifices

Association's uanuary

by amend¬
'■: A"

ment

persons

longer

countries

■■■■

front, Henry H. Heimann, Execu¬
tive Manager of the National As¬
sociation of Credit Men, in the

operating subsidiaries engaged prlnin
the production of
raw
cane

lpaliy

Cotton

Jesse

individuals in Latin America and

European

Imports
Continuing-*

Are Still

brought to
almost
5,000 the number of concerns and

become

its

Orleans

Far East Rubber

action

Pointing out that it has quickly
Farm Credit Problems;
apparent that we cannot
A. G. Black, Governor of the
be
"the arsenal of democracy"
Farm Creuit

New York City
organized in
1932

plan

Dominican

luban

New

S&y$ Government
Outlays Must Be Cut

42nd St.,

business—Company,

the

This*

82 in

Nation,Statement with the SEC for 453,691
■ihares of

:■

regis-.

Or¬

Portugal, Spain,
Sweden, Switzerland and Turkey.

Exchange,- Chicago . Board
of
doing business in Portugal, 166 in
Trade, and Minneapolis Chambsr
Portuguese possessions,
389
in
of Commerce.;;
v
;-X
■;
:-:
Spain, 52 imSpanish possessions,

New

663

and individuals in

names

filed

Dec., 26,, 1941,. .Jan. 10 and Jan. 31, 1942 "
INDIES

the

Memphis

Amendments to defer effective date

(VEST

and

Mr. Weaver is

member

Cotton Ex¬
changes and Mr. Miller is a mem¬

funds for new construction
Registration Statement No. 2-4913. Form

;

Bennett & Co.

leans

A2."( 12-12-41)

each

Yeaman,

sale

pany With
»

price bi

the

from

Underwriters

common

and 60,000

Corp.

Generating Co. (a subsidiary), to
payments td its present pre¬
stockholders, and to provide com¬

everal

Gas

cash

ferred

>ugar

filed

common

General

also

Inc.,

with

statement

value,

par

Tobacco

par

CO., INC.

issued

The

outstanding long-term indebtedness of the
its predecessor and constituent
companies,
and
that of Virginia Public

1942 to defer effective date

SWAIN TOBACCO

follows:

company,

V ':

•

Jan.

first

used
new

registered will be used to retire all of the

$250,000

16, .1941,

Exchange held on Feb. 5, the fol¬
lowing were elected to member¬
ship in the Exchange: Jose de la
Mora, of Mexico City, Mexico;
Dudley S. Weaver, Jr., of Mem¬
phis, Tenn., a partner of Caughlin, Weaver & Co., cotton mer¬
chants, and Frank A. Miller, of
Chicago, 111., a partner of James

in exchange for the old
now
held by General Gas
Corp., and will be offered for
through
competitive bidding.
tThe

iale

minimum capital of $300,000
?Y;
Registration Statement No. 2-4898. Form
<

Electric

proceeds

A2.

stock.; .Name

stock

common

comply

minimum

surplus. Company
with laws of

to
soon

and with the laws of Massachusetts requir¬

ing

will

West

directly to capital ($100,-

Electric

per share •
Proceeds will go

their

v.*

will

Proceeds

528,333

Service

Offering—The

offered

the

present "stockholders, under their, preemp¬
tive rights, at price of $16 per share.- Un¬

ment

SOUTH
with

; '•

cash 1 for

underwriters,
and
public offering prices
the securities, will be Supplied by posteffective amendment to registration state¬

Union

take

FINANCIAL CHRONICLE

New

Bacon, Whipple & Co.

REMEMBER

BIDS MADE ON BONDS WITH

COUPONS MISSING

ARE

trading markets in "•

and firm

MUTILATED

OVER

Inquiries Invited

N. Y.

Teletype

4-4832

DIgby

W. T. Patten Jr. Is
Hew With
to The

'•

•

BEyth I Do.

NEW

STREET,

philadelphia

/YYv

C425

Enterprise

new

york

Charles

leading exchanges.
Mr.
Frothingham will act as alternate

of the
de¬

cial

trading

for

stitious.

knowing

l\i or V/2 points.

ILL.

who did not
become

for the

Mr. Townsend,
seek re-election, will

years.

member of the govern¬

ing committee.
Mr.

Scott

Vice-President

the Philadelphia

the

Governor

Exchange and is
York

New

York

New

13th.

Feb.

recently been
Cruttenden ;

thereto
was

Stock
Mr.

Exchange,

Wheeler

has

partner in Fuller,
&
Co.
and
prior
a

with Ernst & Co. and

was

proprietor of John E. Wheeler
for

Co.

Mr.

years.

many

Wheeler is a member of the Chi¬

Joins
Evans, Siillman & Co.

Evans, Stillman & Co., 14 Wall

partner in

Price, Continental Illi¬
nois Bank Building, members of
the

Frank 0. Hayes

Street, New York

City, members

Exchange,
G. Hayes
associated with the

of the New York Stock
announce

has

that

become

firm

Frank

charge of its bond trad¬

ing department.

formerly

with

Hutzler and, for
been manager

Mr. Hayes was

Bros.

Salomon

the past year, has

of the bond trading

......

the Mutual

Company of New

Life Insurance

two

Assistant

Silloway,

past

John

—

Hicks

President of the Exchange

limit cago Stock Exchange and Chi¬ department of the Chicago office
of Bear, Stearns & Co.
of your ability. V .
'
[
If you want to sell them later and shift into cago Board of Trade. : *
issues already outstanding, fine—do so.
.
.
But make the best of
these now-and-then opportunities
to build up your margin of
it will secure only the right to tax future issues of States and
profit.
V-'. < Y-;:■
■
With tomorrow's borrowing the main topic of conversation in municipalities.
v:
yy.:/YoLy>;'7Y/U■."/" J
Which is exactly in line with the repeated suggestions of this
Government bond circles today, the prediction of a top Government
With its
official on the total debt before the war ends appears of unusual column.
recommendation that you view the taxsignificance.
In an off-the-record talk, he said the debt would exemption fight calmly and/take advantage of the upset markets to
Z':
reach $250,000,000,000 mark. . . . That Treasury officials and other build up your profits and income position. . %
spokesmen for the Administration now were speaking in those terms.
Assuming the opinions now being expressed are correct, there
That the question in their minds was not what the debt would is less reason than ever to doubt the position ol outstanding taxbe eventually, but how best they could accustom the public to this
exempt Federals.
If the Treasury has to fight so bitterly for
outlook.
■■■/'
•
taxation on outstanding States and municipals, it hasn't much of a
The debt now is $61,000,000,000. •>
.
The debt limit is $65,- chance of slipping by with taxation of outstanding Federal obliga¬
000,000,000. ... This month, about $800,000,000 defense bonds will tions.
Yy'v'-'Y-?V:,Y /Y'\Y"-'
be sold in addition to the current new money borrowing from open
Maybe, Congress eventually will vete taxation of outstand¬
market investors.
In other words, the borrowing leeway is
ing local obligations.
The timing of this is a more crucial

president.

Financial Manager of

PA.—Edgar

senior partner of Mont¬
gomery, Scott & Co., was nomi¬
nated for the presidency of the
Philadelphia Stock Exchange, to
succeed B, Frank Townsend, Jr.,

■/*' Stuart

PHILADELPHIA,

R.
ar¬

IX.

CHICAGO,

because it must be, because Secre¬
.

James
15,

for

section

under

Wheeler will become

may

tary Morgenthau cannot afford a failure at this of all times.
So buy them. . . . Pick up the bonds and/or notes to the

af¬
fairs
of the isiational
Security
Traders Association and the Bond
Traders Club of Seattle, of which
is active in the

York

Hicks-Price Partner y

be predicted:

oversubscribed; allotments

heavily

New

John E. Wheeler To Be

from

and maybe

;

:-,.V:

former

enough investors
the $1,500,000,000
free riding. . . .
a holiday and a

may

Edgar Scott Nominated
Phila. Exchange Pres.

Stock Exchange.

that this is the first cash financing
; •:Y\\
.?'
,Y

details, these things

all

will

issue

ticle

in red letters on the calendar of the super¬

The issue will be a success,

Mr. Patten

Harbor.

Exchange

Leonard

12 to 18% against 11 and 15% on the December
issue and 12^% on the October issue; still, considering the
free riding regulations, that will be good. , . . vVY/yYYwVThe subscription books will be closed tomorrow night. , . . :
The securities should rise at least to a % point premium ,

& W. T. Patten, Jr.
Co.,
was
an 1.
officer of Drumheller & White,
and in the past was in the trading
department of Smith & Strout,
Inc., and the local office of Blyth

Despite the fact

The
range

ten, Eyman

Without

v•:.

Presi¬
of Pat¬

& Co.

choice of

Pearl

since

he was

dent

week-end and marked

& Co.;

Son

companies, with
oversubscription of
the restrictions on
day squeezed in between

for insurance

some

Despite the

Wm. P. Harper
&

to buy to assure heavy
borrowing.
v Despite

cash

de¬

partment

banks,

eager

the

point

the

floor

Stock

guessing now the terms of tomorrow's
borrowing, for you'll know them within a few hours. . . . Bonds
plus notes are the general expectation. . . . Some for commer¬
There's

man¬

ager

the

thereto

was

partner

other

and

Morford.

will

Frothingham

in
Moore,
Leonard & Lynch, 14 Wall Street,
New York City, members of the
New York Stock Exchange and

Stock

Prior

become

formerly Vice-

•

Admitting Frothingham

partment
o f
Badgley, Fred¬
erick,
Rogers

y:;/y

Y. 1-1397

Scott,

Exchange, was

trad ing

■

Moore, Leonard & Lynch

member of the

manager

Enterprise 1250

Blyth & Co., Inc., 1411 Fourth
Building,
Mr. Patten, a

President

Teletype n.

Dealers Ass'n

HAnovcr 2-8730

Wil¬

are

1-570

Avenue

Seattle

firm

Donald M. Hazeltine.

Patten, Jr., has become associated
with

the

St., N.Y.

Bacon,

Teletype

boston telephone

telephone

hartford

Y. Security

Members N.
25 Broad

Jay N. Whipple,
James W. Marshall, William D.
Kerr, J. Preston Burlingham and

YORK
Bell

telephone

Enterprise 60CL5

2-3G00

REotob

Chronicle)

Financial

i'.'Z•• '•*

•

Partners

liam

York Security Dealers Association

NASSAU

Zinc

M. S. WIEN & CO.

firm's

the

holds

also

Bacon

Mr.

incorporated

telephone

WASH.—William T.

SEATTLE,

firm, acquires the Exchange
membership of John S. Chapman.

///"C

Mfg. Co.

Mexican Internal & Ext'l Bonds

of the

Kobbe, Gearhart & Company

1-1779

Cigar-Whelan

Evans. Waliower

York Stock

New

Chicago Exchange membership/;

Members New

(Special

SECURITIES

COUNTER

(Actual Trading Markets, Always)

PI., New York

40 Exchange

Merrimac

United

Feb. 19th, when
William T. Bacon, senior partner

S. H. JUNGER CO.
Phone

the

member

Sharpe

Exchange,

THE

na- 'ars....

...

■

'LBrown &

World's Fair 4s, 1941

ple & Co., 135 South La Salle
Street, members of the Chicago
Stock Exchange, will become a

for the asking, in making accurate

yours

HO:

&: preferred

common
l,

CHICAGO, ILL.—Bacon, Whip¬

•

icell-lrained

you, that our
staff and seasoned specialists,

Merck & Co., Inc.

,y..V

To Be NYSE Member

IT is important to

yraurbeF\ 12,. 1942

Thursday,

CHRONICLE

THE COMMERCIAL & FINANCIAL

664

elected Treasurer
company by the Board of

York, has been
of the

immediately,
getting mighty narrow. . . .
'
y.W'Z:
announcement
There are several sidelight angles to this prediction, which must
made today by Lewis W. Douglas,
be given full weight:
'
■
:
' ;
(1) Apparently, officials are anticipating a war of at least
President. Mr. Silloway will suc¬
.

effective

Trustees,

according

But

July

ing on

with

service

$250,000,000,000 debt before the end of the conflict.

1 after 47 years of
the company and

who will be on leave

Silloway

ment

tant

1933

Financial

tual Life,

depart¬
in 1939.

Manager

with Mu-

he was connected with

investment firm of

the

inconceivable size.

and became Assis¬

Prior to his association

Webster,

Kennedy & Co. and, from 1929 to
1933, with Kidder, Peabody

& Co..

investment bankers.

while.

.'YyY^yY-yY/YYy''• :

word

of the war

of the

That

costs; taxation, only % to 40 or 50%. y
better

won't

the

record

the

first

War by

' "

;

any

R. Hoe & Co.
COMMON

this size.

morale,

annual discussions

simply under¬

At the rate of debt increase currently,

N.Am. Refrac.6y2%Pfd.

Congress to take
Removal of

thereafter.

HAY, FALES & CO.
Member«

i,ew

York

Stock

BeLl

Teletype

1-61

./•

the tax payments March 15.

For

fact

1, 1941, on.

And these sales are continuing, indicat¬

won't be as important in the
■

;;

The

turities.

up the debt question within a month or so.
.
.
.
and all limits on borrowing should follow shortly

refunding calendar is clear—except, of course, for bill ma¬
.Next issues up for refunding are the HOLC 2Y4S, out¬
.

standing in the amount of $875,000,000, and the RFC Is, outstanding
in the amount of $276,000,000. . . . They're both up in July. . . .
After that comes the $342,000,000 Treasury 2s of Sept. 15; the

%s, due Oct. 15; the $232,000,000 Treasury

$320,000,000 RFC

...

Latest reports from

due Dec.

15.

more
on

than

.
None would bother the Treasury
So, Morgenthau is free to concentrate
borrowing as much as is necessary. . . .

casually.

new money

l%s,

None of these is

Washington, State centers and experts indi¬

growing belief that the Treasury won't succeed in its attempt
to tax outstanding State and municipal securities. . . . That, at best,
cate

..." And when the
as well as "direct"

Inside The Market

it would be natural for

Tax-Exemption

Exchane*

Broadway, N. Y. BOwling Green 9-7030

any

guide your actions accordingly.
is used, it includes "indirect"

...

arouse

American Hair & Felt

The semi-annual

...

public

mind, yo^i
.. For in¬
stance, the importance of March 15.. ; ,. . And the question of easy
money conditions apart from Government control.
.
.
And the
"timing" of market borrowings.: / / v Once there were definite rules
we could follow to figure out these angles, but no longer.
.
.
.
Now,
March 15 isn't as important as the total sales throughout the year
of tax-anticipation notes.
.
And the Government has the money
markets under rigid control—with the need governing the action.
And market borrowings are timed to necessity, not to the
"best" price.
"y
;
Y
; ~

confusion, open the way to political
power fights.
„...
We might as well resign ourselves to a suspen¬
sion of the limit for the duration and give the public as little oppor¬
tunity as possible to get worried about the debt burden. . . .
mine

There's your "timing" clue.

this market and its factors straight in your
have to revise many of the rules you once followed. . .

And, finally, we may be confident now that the Treasury will
fight for and be satisfied with nothing less than a complete suspen¬
sion of the debt limit.
y Raising the maximum once or twice a
year doesn't serve any purpose, when; we're facing debt figures of
.

To keep

Eagle Lock Co.

that all tax-exempts now out are safe for a

ing that future tax collection dates
financing setup as before. ,r>....

appreciable margin. . . . We paid for 32% of the extraordinary
expenditures of the first World War through taxation; .obtained the
balance through sales of Liberty bonds to the public. . / .
; y
Removal of Limit

"safe"

from Aug.

World

sure

can

Federal

taxation of local exempts

is, Secretary Morgenthau already has collected billions of
these taxes "in advance"—through the sales of tax-anticipation notes

war

may

until after

come

Don't count too heavily on
the

won't

...

that taxation of outstanding

sure

Tax-Anticipations

through borrowing—borrowing from individuals, from commercial
banks, from insurance companies, from the Federal Reserve Banks.
Otherwise, a debt total of this magnitude wouldn't be dreamed
of.
The way it looks now, borrowing will meet 50 to 66%%
.

action.

..v,v

(3) They're resigned to paying for the major costs

You

the Mu¬

in its financial

tual Life

And

speed-up in borrow¬

(2) They also are expecting a tremendous

of absence

jointed

may

tax-exempts

ing, a speed-up which will dwarf the $15,000,000,000 debt increase
in the last 12 months. .".
To build the debt to four times its pres¬
ent total in a few years is going to mean security issues of almost

until that time.
Mr.

has been accomplished.

years' duration or they wouldn't be forecasting a

three to four

is retir¬

C. Turner, who

ceed

point than the ultimate decision.

important.
...

Full text of Commercial and Financial Chronicle : February 12, 1942, Vol. 155, No. 4045, Section 1

FRASER