Full text of Commercial and Financial Chronicle : February 12, 1942, Vol. 155, No. 4045, Section 2

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Final Edition

Volume

155

THURSDAY

Number 4045

■

New

In 2 Sections

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

Section 2

Price 60 Cents

Copy

GENERAL CONTENTS

FROM WASHINGTON

Editorials
Page

World Population and War
Economy 666
Debate on Inflation.,.;...,.,, 668
No Time for
Vaudeville.V,.. 665

AHEAD OF THE NEWS

■yxfk: Regular Features
One

the
of

Financial

the most

interesting things I have lately heard around
Production Board is that, after
all, there is the possibility

War

country going too much "all-out" for defense production for its
war effectiveness.
Bear in mind,, for months the
agitation here, and
agitation is mostly all that Washington
manufactures, was that
"industry doesn't realize the gravity of the situation, that

industry

wanted to go ahead on a "business^
as
usual" program. It so
those

that

business

around

happens
industry
all

the

country
has
been
"realizing the gravity" of the sit¬
uation for the past several
years,
and particularly
during the im¬

mediate months leading
up to our

getting into the
Businesses

terly

war.

and

lat¬

of the situation" because
priorities
either
ruining • them
or

were

while

the

Washington
making nightly
speeches saying they didn't "real¬
ize the gravity of the
situation,"
that they didn't realize that we
had to "go all-out." Not
only has
bureaucrats

War

thinks

Banks

and

State of
General

Cos.

Review

were

Power

it tried to turn

667

...

682
681

682
679
682

682

684
684
683

Output..
.......;! 684
Index......... 682
....

Price Control Act of 1942
(Text)....
Death of L. N. de Rothschild
.'.

than

ABA

its

Trust

Conference

673

producing the fig¬

and

676

676
676
677

Illinois Bankers Hold
Meeting......
Farm' Price Products 102% of

677
Parity 677
(Text of Law) 677

"War-Time" In Effect
Farm

Prices

Curb

Higher.,

Imposes Fine.

SEC

Orders

677
......

-...

677

v..

Expulsion Hearing...... 677

U. S. Legation Leaves Denmark.....
Canada's 1941 National Income. , .,
.

1941

Farm

Inc.

CIO Urges

Highest

Since

677

678

1920 678

Charles Henderson RFC
Coffee

On The Foreign Front

Chairman..

Control

Fed.

NYSE
1941

679

Bureaus for N.

Odd-Lot

European Stock Markets

Auction

sioned

by the latest

Gilt-edged
fractions

trading

the

little

yesterday,

lic prepared

the

Sing¬

East

ping

lost

ground.

Ship¬

steady, and oil issues of

ness,

com¬

in the Far East also tended to
■

•/.•'....

;

ations

lively,
of

the

under

speed

the

Far

and

„

restrictions.

after

their

:k.

fail to exert and

such

longer

(Continued

any

page

doubt

686) L

wisely direct

utmost effort to avoid

our

catastrophe.

:{:•

Fortunate indeed is it that, despite
many protestations
contrary by high placed officials, from, the President
down, the North American continent still enjoys the vast

protection nature, has afforded
open water on both sides.

thousands

Otherwise

our

miles

might well today stand in serious and immediate
jeopardy. As these things actually stand, it is obvious that
enemies would find

our
as

shores

our

inaccessible to them

finding theirs and those under attack by them
thousands of miles away. Nothing that has occurred
are

many
for a moment
suggests that the soil of the United States is
less unconquerable
by any foreign power, or probable com¬
bination of
foreign powers, than

always supposed it to ber
But

could

easily lose this

and the loss of it

war,

could be quite disastrous, without
having tasted the bitter¬
ness of even a "token raid"
upon our own soil here in the
homeland.
Such is one of the essential

qualities of the

(Continued

669).

page

682

SEC

Banks

682

Reports on Electrical Supplies.

Vaniman

WPA Board

Work

Trust Fund

Bankers

Textile
on

Plan

Fiber

This

666

Advantages.

667

Poito Alegre Bond Payments.,....

Mtge.

No Time For Vaudeville

683
684

Increased

Hours

683
683

World Front

Class I Railroad Earnings in 1941..

Common

667

"Clinics"

657

Consumption..

Washington "Parasites"..

668

off

little

for

time

We're tough.

guard

wave

We're

big.

is the other fellow.

and he's sparring

once

in-fighting, waiting for

and turn around and

670

self-hypnotism.

But

to get

around

careless

We're

caught

doing

now,

to get

cocky

the audience.

670

Beal

strong.

638

Says Govt. Invades Property Rights.
Heads

Boston Clearing

Granted

China

Federal

Assn...

Loan

••...

Rejected

Signed

1941

Cotton

Loans...,.

Staff

Limit

Not

671

Higher........ 671

Group Announced.....

This

plan.

fellow

You

hurt

can

sure

us.

that

need,

enough of

victory,

constant

672

realize that

lose this

can

produce the equipment called for in

hard, grim, realistic spirit.

war.

blueprint for

our

We need the will—the

driving, unflagging will to win.

..<•

Billion Debt

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

Alabama Health Law Invalid........

672
on

need it not

the

S.'Sugar Production Outlook....; 672

S. Credit to

Bolivia:-...;..;...... 672

Loans....;.;.;........•; 672

offices

and

and at the

only

the battlefield and in the air and

We need it, too—and to

sea.

672

Wheat

he knows just how he is going to try to catch

671

Upholds Govt..Milk Regulation..... 672

-1941

And he has

Mtges. Lower 671

New Loan....,

Short-Interest

badly.

671

Treasury Employees on 44-Hr, Week 671

NYSE

being grandstanders.

quit

and hurt
671

Civil Raid Defense Bill

Let's

671

New York's Claim To Russian Funds

Chic. Home Loan Bank

the

factories, at the

lesser degree—in the

bench and

the

lathe

plow—we need it in the homes, in the hearts and

hands and minds of

130,000,000 Americans.

CCC Cotton Sales Program.........; 685
Corn

Loans'. Repayment............

New Car Prices Established.

Binders For The Convenience

;

Of Our Subscribers

Heads N. Y. C. Defense

Defense

Bond

Henderson

Arrangements have been made with the "Expandit" Binder
to

supply temporary binders in which to file current issues of

the Financial Chronicle in its
the

use

new

form. These will facilitate

of the Chronicle and will protect copies against mutila¬

tion and loss.

The cost is $2.50 plus postage for each of these

binders which have been designed to hold

one

of the Financial Chronicle. Orders for binders
to

month's

issues

should he

"Expandit" Binder, 25 Spruce Street, New York City.

sent

;

685

NYSE
Land

Sales

.....

Inscrease...;..

Confirmed

Borrowings....
Heads

Savings "Unit 685

1939........

Price

Hurley in New Zealand Post
Referendum

Wheat

Real Estate

685

Defense

SEC

very

May..,

Financing
With Mutual Life......

Housing Act Approved

good

beware of

easy

confidence.

/ ask

you

baU;

get of a victory here and there against

news we

grim over-all picture.

685

Once

688
688

688

side

have

this

come

see

knowledge of
ultimate

then

picture,

Dunkerque, rise

Mortgage Recordings— 688

Home
Jones

the

685

Savings and Building Loan Deposits 669
Urban

ance

and

Head 685

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

Shipping Board.

I ask you to

685

February Food Stamp List.v,..... 685

Income Data for

very own hearths

and altars

Credits 681

English Financial Market......
National

conquest of
the Malay Peninsula.1 With abso¬ Morgenthau Seeks-110
lute
control
of
the
air,
they
pushed the British Empire units
steadily back and there is, un¬

and

while the mild

men;

682

Allied

days

681

Sales

resourceful¬ Treasury Announces

began to in¬
Island late last

slight relax¬ fortunately,

official

Japanese

completion

Dealings on French markets in
both the occupied and unoccupied
areas
are
reported V somewhat
more

appeared

679

1941

London Stock Exchange

1941

sig¬

680

Salvador

Wholesaler's

FDR

unimaginable

vade Singapore
Sunday, only eight

panies located elsewhere than

improve.

this

amazing

relatively

were

markets

week, as the defenders
of Singapore fought a
desperate
but
apparently
hopeless
battle
against numerically superior
Japanese
units.
Acting
with

Far

sharply lower at times,

issues

nificance

home

and South African gold stocks

likewise

Singapore
Portents

Eastern rubber and oil shares
were

are

Central and Eastern Europe.

of
soft.

There

Axis-dominated

marked

and

loss

were

available under

rules, demand for shares

the British pub¬

Industrial

issues

stock

reliable reports of trends in Axis

day-to-day

market

For

American AEF

new

London

has been less acute.

minor

for the shock of

temporary

apore.

rail

the

were

London, with

tendency

the

stocks

lower only by

marked

With

news.

war

the

Sales ;

Aid

trading in securities continues to be affected by the vast
and uncertain considerations stemming from Far Eastern devel¬
opments.
Prices moved modestly lower on the London Stock Ex¬
change in the latter half of last week, and the downward drift was
accelerated early this week, when Singapore was invaded by the

and

promised miracles in the future; and while the
public is
being continuously spoon-fed with the exploits—often really
heroic and sometimes
bearing testimony of surpassing ex¬
cellence in individual
cases, but unfortunately about as
often
relatively meaningless in the larger scheme of things
—of American individuals and
machines, the relentless
course of events is
steadily laying bare the cold fact that
we
may lose this war, indeed, that we shall lose
it, should

680

Output at Peak 680

Trading on N. Y. Exchanges...

British

gains" play fast and loose

City,. 679

Trading.

Cotton Textile

"social

thoughtful observers have

Transmission

Facilities
Seeks

678

Supplies Held Adequate,.... 678

FDR To

of materials

anxiety of the unthinking is hourly soothed with astronomi¬
cal appropriations
and dramatic pronouncements about

Higher Wage Demands.. 678

H. A. Officials Resign....... 678
Hershey Stresses Defense Needs 678

Oenv

but

resources

our

building" and frivolous prop¬
riot in
Washington; while

run

to the

Newark

Japanese.
Panic liquidation was absent,
clearly reflected the gloom occa-<^

defenders

675

Meeting. .676-679

were

thousand forms

stubborn

Wickard

who

680

681

production to war
Condemns Corn Price
Advance s.................
goods, it militated against its war
U. S. To Purchase Cuban
Sugar....
effectiveness, i- The point is; that
Agriculture Dept. and OPA State
these
fellows, inspired by eco¬ : Aims
nomists, Undoubtedly the ' same Cullin: Discusses Post-War Needs...
ones

670

Miscellaneous

significant that they are beginning
to
say
privately
that' Britain

aganda in
with

Trust

Trade

Board);, this Moody's
Commodity
quite hopefully

About

Electric

Production.

ures'for the "all-out" speeches,
industry taken an are now getting; a little worried
awful financial licking in this sit¬ about the "all-out"
stuff.. :-f;
uation but a political
beating from iFor' the ;, American y industrial
the propaganda that
accompanied world, I think it is a hopeful sign.
it.. * - •"--••v.-*"
Apparently, }* for the first- time
< Among
the Dollar-a-year men, SvV (Continued, on page 687)
i

business

Items

now
that they are at the
Bank Debits
top in the reorganized production Petroleum and Its Products........
Weekly Steel Review...., r.
set-up known as the WPB (the

writer

While dilletante "morale

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

Commodity Prices—Domestic Index.
who have come to the top Commodity Prices—World
Index..,.
were as bad at
spreading this gos¬ Carloadings .,,......... .V,..........
Engineering Construction Lower....
pel, at lending themselves to this Paperboard
Industry Statistics......
agitation, as the most agitating Weekly Lumber Movement.........
Fertilizer Price Index...............
New Dealer.
Weekly Coal and Coke Output.....
But

threatening to ruin them. They found if
clamoring for government 45% of

were

contracts

665

Foreign Front
665
Washington Ahead of the
News
♦.......,Vtiv............., 665
Moody's Bond Prices and Yields,.., 682
From

.....

industries

"realizing the gravity

were

''kk'kk'

Situation

The

our

strength,

our

fully understand the dark

shall,

the

British

after

full might and fury, firm in the

rightness,
steadfast

sure

our

the

confidence

unshakable

William L. Batt.
'

669
687

687

Reports Dec. Exchange Sales., 687

•

And

■

shall need

vaudeville

bolster

our

purposes.—

morale.

Editorial-

Work Hours Increase
After Pearl Harbor
working time in im¬

Increased

portant

the

striking

most

as¬

of the December wage and
hour statistics, compiled by The
Conference Board, of New York.

pect

machine and foun¬
dry equipment industry, average
hours per week rose from 45.9 in
November to 47.7 in December.
the

heavy

The Board also states:
the

man

44.9.

The

em¬

machine

and

43.6

from

foundries,

Nation's

hours ; per

working

ployees

the

took

industry

tool

machine

rose

•

their repu¬
tation as the champion workers
on
defense
and * war
work.
Throughout 1941 the employees
of the prime war industry av¬
eraged 49.7 hours per week,
thereby beating their nearest
competitors, the employees of
the
heavy
equipment
indus¬
try, by 4.1 hours. In December
they averaged 51.0 hours per
week, one hour longer than in
still firmer grip on

November and by far
est

time

working

any

the long¬

man

per

industry.

The

with

connected

tries

other

following

indus¬

•

pro¬

war

duction increased their average

time
in
December;
miscellaneous
foundry

working

wool,
products,

Wagner, who collaborated many" years later in the mostcomplete inquiry that had been made up to that time, esti¬
mated the aggregate for 1882 as 1,434,000,000, the figure
accepted by the editors of the ninth edition of Encyclo¬
paedia Britannica. For 1926,' Professor: Carr-Saunders, of
the University of Liverpool, adopts the total of 1,879,595,000, upon the authority of the .International Institute of
perhaps something more than a coincidence that Statistics, and the currently accepted estimate of the

and

industries after Pearl

war

Harbor

It is

War-Economy

period which witnessed the plowing under of immature present time indicates a world total of 2,100,000,000. The
and cotton and the sacrifice of little pigs should cul¬
margin of error in these , estimates has unquestionably
minate in the plowing under of population, by less direct diminished
very greatly during the 150 years or less which
means but upon a larger scale than the precedent destruc¬
they cover.- Beyond doubt ;they are sufficiently accurate
tion of subsistence.
The late Dr. Frederick C. Howe, a to
support a conclusion that within that time there has been
shining although variable light during the earlier manifes¬ at least a three-fold, probably a four-or-five-fold, increase
tations of fhe New Deal, observed to- they writer during ai
in the number of living inhabitants of this terrestial globe.
chance meeting while it was still young, that he suspectec}
How significant such an Increase really is can be suggested
that the United States had even then exceeded the optimum
by reference to the fact that the best authorities now believe
in population and that the number, of its inhabitants might
that, with the current ratio of births and deaths to-the
be reduced with general advantage to the remainder."4 That
total population of western civilization,; the progeny of , a
typical expression of defeatism, when the country held
single pair of human beings would approximate the present
merely 41 inhabitants per average square mile, compared total of the earth's
population in only 1,900 years. That;
with 528 in Massachusetts and 668 in England and ,Wales!
the aggregate reached by the year 1800 was, at the very
One fourth of the lower of these densities, that is 132 .per
most, little more than one-third of the present number in¬
square mile would give continental United States, exclu-. dicates that iron law of Malthus must have been
fully in
sive of Alaska, an aggregate population in excess of 390,operation throughout most of the history that ended when
€00,000, instead of the less than 132,000,000 counted at the
the Nineteenth Century began.
■ ^
'
census of 1940,
But the New Deal at that time was think¬
a

corn

ing in terms of ease of living within domestic boundaries,
not at all in terms of the prowess in international combat

for
the maximum produc¬

of the

greatest possible number of conscripts organized

battle

anywhere

tion of

war

upon

the globe or

materials to be consumed in the destruction of

foreign enemies and enemy property.

Malthus's Iron Law
t

The Reverend Thomas Robert Malthus in 1798,

at about the

that is

beginning of the Industrial Revolution inaugu¬

rated by the steam: engine and

mechanical spinning, first

published the results of his studies concerning the , prin¬
Such thinking is ciples which control the numerical development of popu¬

equipment, presumably suppressed, if not obsolete, at the present time. lation. ^Considerably revised, more
and steel, hardware and Thought inevitably now turns
to the power that lies In in
logic and supported by statistics
parts, leather, cotton (the large numbers and at least incidentally to the significance

iron

small

electrical

Northern mills), paint and var¬

nish, and chemicals.

im¬

agricultural

automobile,

of the ancient formula which called for
to the

the

work

hours

The

greatest number" as Ihe ultimate

"the greatest good

goal of the social

organization, economic and 'political.

plement, and rubber manufac¬
turing industries, on the other

World

Population

completely developed
and other facts, and
greatly enlarged to include these essential additions, the

work

republished in a second edition in 1803. In brief,
that, excluding checks which ought to be
regarded as abnormal,' the natural relation between the
aggregate of population at any period and its increase, by
was

found

Malthus

the

excess

of births

over

deaths, is such that the increase

Nothing could better contribute to genuine : compre¬
must be according to a geometrical progression with some
hension of the amazing material progress of European and
goods.
The employees of the
American civilization than an intelligible exposition of the positive ratio. Obviously, if this is true, and unquestionably
automobile
industry
averaged
it is true under static conditions, the aggregate must always
correlation between the vast progress of that period in the
only 34.8 hours in December,
tend to increase, however small the ratio may be and how¬
as
compared with 39.5 in No¬ arts of agricultural and mechanical production, upon the
ever
vember.
The agricultural im¬
slowly the augmentations may accumulate. - As abnor¬
one hand, and the enormous concomitant increases in pop¬
plement workers averaged 39.1
mal or artificial checks, frequently in operation, Malthus
ulation of the countries and ,, regions which led in:that
hours, as compared v/ith 40.8 in
November. In the rubber man¬ progress, upon the other.
The. steam engine, the spinning recognized war, famine, pestilence, and voluntary absten¬
tion
from
parenthood.
Thesje causes, and infanticide,
ufacturing
industry,
working jenny and the power loom were the prototypes of mechan¬
especially the destruction of female infants, once very
time dropped from 38.5 to 38.0 ical development and these were new at the commencement
hours per employee. In 25 man¬ of the Nineteenth Century and in the initial stages of. then- widely prevalent in Europe, Asia, and Africa, beyond doubt
constituted the essential means which, before the year
ufacturing industries the aver¬ adaptation to the commercial demands which they first
and then stimulated. > Production by the new 1800, restricted the growth of population so that in:that
age working time in December supplied
methods and with the new mechanisms was progressively year the world's total must have been below 700,000,000.
was
41.6
hours, as compared
Malthus went further.; .Finding; that-population naturally
with 41.5 hours in November, organized; the latent genius among mankind being turned

hand,

reduced by the cur¬
of output of civilian

were

tailment
>

;Y"irThursday,' February 12, 1942 V

THE COMMERCIAL & FINANCIAL CHRONICLE

666

and

40.1

hours

December,

Wages

Highest

Average
25

hourly

Record

earnings

manufacturing industries in¬

creased
the

December

speed

same

and

contributed new; discoveries increases geometrically, he found also that the supply of
for territorial inter-changes of raw available subsistence, that is principally of foods produced
materials and surplus products, including the machinery by, tillage and animal husbandry which must ever be
of
banking,
communication, and transportation,
were limited by the surplus of products of the soil, cannot in¬
promptly created and extended; and a genuine new order crease except by arithmetical increments. Therefore,: he
of existence arrived.
'
concluded, population, unless unnaturally checked in its
The essence of that new order lay in efficient produc¬ growth, must press increasingly upon the means of its sub¬
sistence, producing increasingly rigorous conditions of
tion and wide distribution, simplicity if not complete free¬
existence with spreading poverty and extremities of priva¬
dom in all commercial and financial exchanges both > do¬
tion and the degradations of relentless and incessant toil.
mestic and foreign. * Its consequences included a previ¬
It followed, from these premises, that if the abnormal checks
ously undreamed of capacity to support largely increased
of war, famine, pestilence, and voluntary abstention from
populations with actual improvement in their standards
of living and the entire elimination of the direst hardships parenthood, could not be called good, the least possibly to
be said was that they were imperative and necessary and
of poverty and the most meagerly rewarded
and most
the ultimate protection of posterity against sufferings other¬
in

the

and

1940.

about

in November

October, according to The

Conference

Board.

December

direction rapidly

new

inventions;

means

the 23rd consecutive month

was

in which

hourly earnings either-

increased

remained

changed.

Since

un¬

August,

1939,

they have increased 21%.

Most

of this increase has been caused

higher

per

wage

rates.

Hours

week have increased mod¬

erately,

from

37.9

August,

1939, to 41.6 in December, 1941.
Average
risen

weekly

from

Average

$27.29 to $36.08.

hourly

December,

1941,

86.8

cents,

86.0

cents

74.5

cents

Average

in
in

earnings

amounted

compared

with

November,

and

December,

weekly

amounted

have

wages

1940.

earnings

$36.08,

com¬

pared with $35.74 in November,
and

$30.28

They

were

December,

the largest

1940.
rec¬

ord.

For the year as a

hourly
were

and

much

whole, both

weekly

earnings

higher than in

any

grinding and oppressive toil.

progress

festations

centered within

were most apparent.
The whole earth was ex¬
plored for the raw materials necessary to supply the en¬
larged consumption demands of Europe and America and
was
opened to trade which brought to the least advanced
portions and peoples the knowledge of higher civilization,
of novel conveniences and luxuries, even of new safeguards
against the consequences of accidents and disease and
hence augmented comfort and security in living.
Prob¬
ably, the effect, in the numerical increase in the earth's
total population, affords the best single index to the: real¬
ity of the great antecedent changes in the methods of pro¬
duction that had begun with Watt and Newcoment,: with
Hargreaves and Arkwright; which is not yet complete with
aircraft and wireless telegraphy; with synthetic rubber,
rayon, and plastics.
Estimates of the populations of r the
world at about the beginning of the Nineteenth Century
vary from that of Volney,'who placed it at 437,000,000,\to

other year in the history of the

those of

country.

This

Europe and North America, principally> on this
side of the Atlantic, within the United States, but its benefi¬
cences were not restricted to the areas in which its mani¬
western

Fabri

total

and

Pinkerton

who

inevitable.

wise

Came Then Progress

Malthus

was

conditions he had
time he wrote.
have

indubitably right in the light of all the
seen

that the world had known at the

His iron law

was

then operative and it must

remained

operative had not progress which he had
not apprehended supervened and multiplied the means of
subsistence and the potentialities of their increase far be¬
yond the concurrent geometrical increases in population,
even
in Europe and in the United States.
Almost over¬

night the production of subsistence, of all consumption
goods, ceased to be a function of human arm-power and
leg-power and became a ■ function . of natural forces,,
hitherto almost wholly latent which mankind was every
hour learning more completely to control and more effi¬
ciently to utilize. Supplemented by chemical discoveries,
related in their origin and startling in their still unmeasured
potencies, they \speedily suspended the conditions under
which" the law formulated by Malthus was imminently

independently arrived operative and encouraged mankind to believe that it might
1805. Behm rand permanently : be disregarded without inj ury.-*The popufca-

,700,000,000, for, the year

Volume

155

Number 4045

THE COMMERCIAL & FINANCIAL CHRONICLE

667

tion of England and Wales
grew from 8,892,536. in 1801 to increases, therefore, concern the ume brings 1942 construction to
39,947,031 in 1931, the latest census year for which reports Government far more than cor¬ $789,870,000, a 16%% increase
over the six-week 1941 total.
porate managements.
^
5 are available. Concurrently, the United States
grew from
The Nation's Class I railroads
The CIO has shown clearly that
I- 5,308,483 in 1800, to
122,775,046|in 1930, and about 135,- it is utterly indifferent to the in¬ had an estimated net income of
000,000, at the present time.
Continental Europe was flation danger and to the oft- $500,545,671 in 1941/ which was
,

Operating

pared with 1940.
Net

than

numerically increasing, despite heavy losses from emigra-' expressed determination of the
Administration
to
stabilize
the
tion, almost as rapidly. By 1882 it had risen to 327,743,price level as a necessary war¬
400; sixteen years ago (there
being no late figures that are time policy. These wage increase
at all complete or
reliable), in. 1926, it stood at 467,092,000- demands will soon come before
and the average
density for the whole continent had reached the War Labor Board. That body
must; make up its mind to resist
126 per square mile. And withal,
except where industry higher wage demands
firmly, if
was
impeded by. warfare and preparations for war v and it does hot want to assume re*
where population was threatened
by potentialities of armed sponsibility. *; foi scuttling the,
conflict, the comfort and security of European mankind, Government's strenuous effort to
prevent inflation, observers state.
from the lowest to the
highest, exceed anything; that
Retail sales gains overTastyear
history had known. Yet the iron law of Malthus was tun?
are;Ukely to, be., narrowed notice¬
repealed. Its full vigor was latent, although its action was ably -before the month is over. A
suspended. It waited, alert,: potent, implacable, for the number of forces are now at work
which will tend increasingly to
happening of conditions calling it into relentless operation;
slacken the consumer buying rush
Are, those conditions about to spring into being?
;that,"\lias;beea in progress since

the 1940

This

1930
the

Since

;

many

that

exchanges

bureaucracies and restricted

are to

by the crude

be controlled by

processes

of barter

and

governmentally administered distribution. The world
must go back to the reasonable freedoms and the relatively
just commercial and financial methods that characterized
Europe and America before 1914, or admit that the prin¬
ciples expounded by Malthus have become again operative
and controlling, that western civilization must voluntarily
accept numerical curtailment, and that it must concede that
hereafter it cannot suitably, support the numbers and popu¬
lations hitherto kept in comparative comfort and plenty.
Man cannot transform society into a series of armed camps,
subordinating everything to efficiency in warfare and, pro¬
duction useless except as contributing to such efficiency;
nor

he throw away

can

his highest attainments in financial

outlined

Per

before

previous high in 1929
Every

major

showed

was

kind

from 1940 to 1941.

stores

the

for

Electric

25%

18 to

ahead of

Mr.

ago,

Electric

power

output

run¬

ning 15.8% ahead of a year ago.
Carloadings, although showing a
slight
hest
the
:

seasonal decline, are the
this particular week in

for
last

12 years.

' Steel

production in the United
States has been stepped up this
week to 98.2% of capacity, against
97.7%

last week, 97.8%

ego, and
American

97.1%
Iron

month

ago, the
Institute

a year
& Steel

reports. Tonnage output this week
of

1,622,400 tons will be the third
largest for any week on record,
comparing
with
1,614,200
tons
produced last week.
"

Overshadowing

the

that

demand for

"is

the

week

filed

with

American
decrease

of funds

designed

trust funds

Vice-President

were

the

address

allow

closer

permit
supervision of

small

trust

ac¬

business

that

go¬

ing to be eminently easier to
handle and, by the same token,
eminently

profitable.

the

same time, we will be able
provide a splendid service
to all our clients and our com*

munities.'

;;

v..

Mortgage Bankers To
Sondieci "Clinics"
In

effort to adapt the Asso¬

the

are
producing such
far-reaching changes,

and

diversification

portance

assumes

added im¬

and,

Mortgage Bankers Association

of America announced in

plan

for

meetings
"bringing
to

Chicago

decentralization

which

the

will

involve

Association

direct

the

members," according to
Frederick P. Champ, President of
the organization.
Instead of

limited number of

regional clinic meetings in larger
cities, the plan involves two-day
conferences

and

mortgage clinics

in 11

cities and one-day meetings
in two cities. The first will be in

Chicago, Feb. 27 and 28 followed
by 'Denver, Mar. 23; Salt Lake
City, Mar. 24; Seattle, Mar. 27 and
28; San Francisco, Mar. 31 and
The
ex^pt to which any Apr. 1; Los Angeles, Apr. 3 and
fund can now be used is limited 4;
Dallas, Apr, 10 and 11 and New
somewhat by the Federal Re¬ Orleans, Apr. 14 and 15. The sec¬
Board's

restrictions

business

serve

increase

$25,000 per trust. That greater
use could be made of the com¬

;

area

37%

ticipating

different

announced
that
rather
than setting up open-forum meet¬

$25,000, and ings with many mortgage bankers
accounts for giving prepared addresses on their
over-all av¬ experiences with various lending
$10,500 per problems, the Association is mak¬
in the five ing a study to determine the most,

the

that the limitation should be in¬

freight for

isfied

$50,000, $100,000

that there should be

limit

the

further

funds.

creased to either

Jan.

from

par-

market

important
mortgage
problems
questions asked created by a wartime economy
1 by our Chairman in a recent and will delegate various mem¬
j survey was whether trustees bers of the speaker's bureau to
r
were satisfied with the $25,000 speak on them.
limitation for participation. Out
!
of 12 answers, all but three felt

the

was

total

have

values in excess of
this to some extent
the relatively high
erage
holding of
participating trusts

whatever.

This

of the

trusts

One

last year was
with the pre¬

Association

ond series will begin in Philadel¬

phia, May 1 and 2; New Haven,
May 4 and 5; Atlanta, May 8 and
mon trust funds in Philadelphia
9; Nashville, May 11 and 12 and
is
indicated by the fact that Cleveland,
May 15 and 16.
It is
22%

equivalent

cars

—

ward

pri¬

invest¬

which

rapid

rise of 14.8%

revenue

2,237

common

ciation's program as fully as pos¬
sible to the necessities of wartime,

over

the

1940

tions

Railroads.
of

broad diversi¬
fication
of
security
holdings.
Under current war-time condi¬

improve¬

England

ended

of 2.61%
in 1930.
*

Stuebner,

policy, make

collective

important being

The

31, totaled
815,567 cars, according to reports

this spring may even sur¬
that of a year ago. The ac¬

It offers such accounts a
number of advantages, the most

compared
gain of 16%.

Loading of
the

higher

Stuebner,

ment

was
a

return

counts.

corresponding

ago

to-

and

limit

The three banks sat¬

with
were

the

present $25,000

smaller

institutions

this

reemphasizes the desirability of ultimately having
a

flexible

limitation

which

could be

Porto

Alegre Bd. Payment

Ladenburg, Thalmann & Co.,
New York, as special agent, is no¬
tifying holders of City of Porto
Alegre (United States of Brazil)
40-year 7 %
sinking fund gold
bonds, external loan of 1928, that
funds have been deposited with it,
sufficient to make a payment, in
lawful
currency
of the United
States of America, of 13.325% of

applied to all banks,
preceding week this year, 101,213
whether large or small.
pass
This
cars more,than the
tion of Congress in voting to the
could be done by making the the face amount of the
corresponding
coupons
week in
farmer special consideration un¬
1941, and 157,737 cars j limit $25,000, or 1% of the fund, due Aug. 1, 1939, amounting to
above the same period two years
der the price control measure has
j whichever is greater.
Under $4.66% for each $35 coupon and
been seized upon as justification ago.- This total was 135.37% of
such a program, smaller trust $2.33 3/16 for each $17.50 coupon.
for union leaders to ask likewise average loadings for the corre¬ f companies would be automati¬ It is further announced:
of the 10 pre¬
for a greater cut in the Govern¬ sponding week
cally restricted by the $25,000
Pursuant to the provisions of
ment's defense expenditures.
limitation while the larger in¬
/ ' ceding years.
the Presidential Decree of the
The Steel Workers' Organizing
stitutions
would
be
able
to
Heavy engineering construction
United States of
Brazil, such
Committee of the CIO is already for the week totals
$161,090,000, | make even greater use of their
payment, if accepted by the
negotiating
with
four ' "Little an increase of 72% over the vol¬ 1 funds than they have already.
holders
of
the
bonds
and
Steel" companies for concessions ume for the corresponding 1941
i
The momentum of the com¬
coupons,
must be accepted in
which would increase the
com¬
week, but 27% lower than the
mon
trust
fund movement
is
full payment of such coupons
panies' wage costs by $40,000,000 1942 high of a week ago as re¬ t such
that,
provided
we
all
and of the claims for interest
annually. The United Automobile ported
by
"Engineering News- ;• scrupuously adhere to the ex¬
represented thereby.
Workers, CIO, is also, asking sub¬ Record." Public construction is
act following of the regulations,
stantial wage increases from Gen¬
198%
No present provision, the no¬
higher, almost triple the t there would seem to be no rea¬
eral Motors.
1941 week total, but is 32% below
son
tice states, has been made for
why the Federal authori¬
It is clear that industry cannot last
week's
total.
The
ties will not at a later date per¬
the coupons due Feb. 1, 1932 to
private
suffer interruptions in operations volume is up 26%.
with
mit an increase in the present
Feb. 1, 1934 inclusive, but they
wages

j
•

of $11,231,000,000.

total
,

evidence

the

year

the- New

18.1%,

It is the belief that part of this reflects hoarding in
additional
restrictions.^
——

fear

vious

compilation.

Hoarding also is reflected in the
increase in money in circulation.
The amount is now at a record

margin of gain

according to the Dun & Bradstreet

investment

marily for

relative in¬

The

15.8%, against

war

year

York

of execution
of transactions
at
uniform prices.
"The Common Trust Fund" said

$399.

production

shown previously.

generally, and continued to
production and the corresponding, swol¬
len payrolls and consumer demand for retail goods.
Retail trade ran
reflect the high rate

New

participating trusts the advantage

Jan.

reveals.

over

week

ters for the week, held to high levels

advantage
of
unusual
market
conditions, allow careful timing
of security purchases, and give

year.

power
ended

with

diversification of investments,
policies,
permit

flexible

Unprecedented

lead

the

week

ment

Business activity while showing a slight setback in some quar¬

mark.

$523,907,472. and 3.36%

it possible for the trustee to take

sales of retailers of durable goods
in the first eight months put these
crease

amounted

year

the

greater

sales

$403.

substantial

last

$999,502,930, a return of 3.79% on
exceeded property
investment,
compared

Mid-Winter Trust Conference of the American Bankers'
Association. Mr. Stuebner declared that common trust funds

have

capita

record at

and

investment

consumers

year.

wete. also

Institute

The State Of Trade

was.

income

interest

since

in my opinion,
should be the keystone of any
investment
policy."
Substantial
change will be effected in trust
department operations by the de¬
velopment of the common trust
11% greater than in 1929 and more
fund, it was stated at the Con¬
than double the volume of 1933,
ference on Feb. 4, by A. W. Whit¬
the depression low in retail trans¬
tlesey, Trust Investment Officer
actions.'
of the Pennsylvania Company for
Nearly half of the increase rep¬ Insurances on Lives and Granting
resents
higher prices, the De¬ Annuities.
This emphasizes the
partment reported.
But in spite necessity
of
cost
and
activity
of this
the
physical volume of analyses,
Mr.
Whittlesey said.
goods was substantially above any He added:

the

possessed when the Twentieth Century began.

dollar

the net

Fidelity-Philadelphia Trust Company of Philadelphia, in

31, 1942,
organization, private freedoms and opportunities, unre¬ amounted to 3,448,193,000 kilowatt
hours, an increase of 8/10ths of
stricted or relatively free commercial exchanges, and con¬
1% over the output for the pre¬
tinue to exist in the numbers and with the comforts which
ceding week, the Edison Electric

time

their income

half billion

railroads

report.

first

operating

payment

rentals for the Nation's 135 Class I

Advantages, Diversification Most Important

in which international

the

railway

before

Six investment advantages afforded by

;;

regions of the earth in which freedom, personal stocked up. on a wide variety of
and economic; comfort,
among all .ranks and classes; secur¬ s.taple*iterns, the rush demand for
ity of life and limb and in economic existence and function such lines is beginning to taper
off somewhat.
The approach of
had reached the highest attained in all
history, have now income 'tax
day on March 15, is
abandoned themselves to anall-pervasivewar
ecoriohiy. having a sobering influence on
They have abandoned the splendid and marvelously in¬ many other consumers who are
creasing productivity of their; peace economy to substitute belatedly beginning to make pro¬
vision for such taxes. The grow¬
an
economy which frankly limits their subsistence and
ing effectiveness of defense bond
admittedly reduces their standards of living everywhere. campaigns - with the resultant in¬
Looking backward to the days of peace and abundance they crease-in savings by consumers is
readily see that their fortunate condition in those by-gone also having its effect. It is pointed
out that some $1,000,000,000
days was the product of a peace economy; with individual thus siphoned off last month.were
The
freedom at its maximum; with labor and capital controlled diversion of
this volume of funds
and made productive by private initiative, and free to move is bound to have an effect on re¬
tail sales.
about within individual discretion;
with banking and
Retail sales last year expanded
finance internationally organized; with trade unrestricted
17% from 1940's volume to estab¬
by quotas or prohibitions, and only partially impeded by lish a new all-time record at
the occasional custom houses.
Nothing is more certain than around $53,600,000,000, the Com¬
that all these freedoms were essential to the
perpetuation merce Department reported.
The year's turnover was also
even of the then
existing levels of population. It is equally
certain that these levels cannot continue under
any system
of war economy or even under newly-urged peace economies

times

Common Trust Funds Offer Six Investment

the turn, of the year.

War Economy

half

Railroads

was

that year

Consequences Of

and

profit, the Association of

American

Those

two

year

$5,346,699,988, an increase
$1,048,700,000 over 1940 and
increase of
$66,000,000, com¬

last

revenues

totaled

favorable due

tgide pf the business .picture is the

strikes

mands.-of

CIO

wartime.

unions

for

De¬
.

wage

a
-

week

ago,- but is 54%

year ago.

below a
.The. current week's vol-

$25,000 limitation. When such
day

arrives,

can

look

for¬

should

adjustment,

retained
■

;

for
v ■;

future
-

THE COMMERCIAL & FINANCIAL CHRONICLE

668

the

Editorial—

Debate On Inflation
Congressional Record the report on the Senate

In the

covering certain financial powers included in the
Second War Powers Bill ends with the grim footnote:
"So
Mr.
Taft's
amendment
was
rejected." Administration
stalwarts and others to the number of 51 voted against a
debate

rather

suggestion by Robert A. Taft, Republican
for further study of a proposal to per¬
sale of United States Treasury securities to the

mild

Senator from Ohio,
mit direct
Federal

Reserve

Unsuccessful

Banks.

in his attempt to

gain further study for this proposed power, Mr. Taft en¬
deavored to limit to $2,000,000,000 and to a maturity of

war

the

portant step was taken in the rake's progress
inflation is not
in

toward in¬

that
thunderbolt that rends the financial skies

Some of the Senators doubtless were aware

flation.

sudden

blast,

but is rather akin to a habit-forming

drug.
The first application of the drug may even be
pleasant or pain-killing, but soon the doses grow larger and
larger, and every step on the road to destruction necessi¬
tates another.
One or two deficits will not lead inevitably
to

will occasionally ill-advised financing end
But if these things become habits they soon

inflation;
disaster.

nor

begin to undermine the financial foundations, and one ex¬
pedient is piled on another to bridge the gaps. Such an
expedient is the proposed power for direct sale of Treasury
obligations to the Federal Reserve Banks.
Senator Taft explained matters carefully in this re¬
markable debate, which has received hardly any public
notice.
He conceded that the Federal Reserve Banks

possessed until 1935 the power to purchase Treasury secur¬
ities directly from the Treasury.
He repeated some of the
testimony which occasioned the legislative restriction in
that year to purchases by the Federal Reserve Banks in
the open market.
The restriction was advocated in 1935
by Senator Carter Glass, among others, for deficit finan¬
cing on an unprecedented peace-time scale then was in
progress, and the restriction was designed to prevent an
expedient in financing which led directly to the final whirl
of

inflation

German

in 1923.

Mr.

Taft .-reiterated' that

French inflation after the last war was

stopped just short

the

complete ruination by limitation of advances by

Bank of France to the French Government.
In the

course

of his

speech, Senator Taft reviewed the

arguments put forward for the removal of the obviously
sound restriction.
These, he said, were that temporary

market difficulties of a tax date would be overcome
by the power to purchase Treasury obligations directly,
and that any crisis like the Pearl Harbor disaster would
be prevented from exercising an unforunate effect upon a
Treasury financing operation, if such an operation were
in progress at the time.
Pointing to the tremendous bal¬
ances
customarily carried by the United States Treasury,
Mr. Taft questioned the soundness of such arguments.
money

end, and it

that

seems

should

set

zone

to me, and it has seemed

barrier

war,

fusion

Meanwhile,

and

peace
war

con¬

economy.

activity

industrial

by law during this emergency against the Federal Reserve
moved ahead, thereby creating
a
greater demand for textile
System, which is in a sense an agency of the Government,
products.
Similarly, the na¬
although not controlled by it, except as its members are
tion's
purchasing
power
in¬
appointed by the President and confirmed by the Senate,
creased
and the civilian con¬
so that in the event of
any emergency in which the Fed¬
sumer
took advantage of big¬
eral Reserve System could better serve the purposes of
ger pay envelopes to buy more
clothing, household furnishings
financing the war they should be allowed to do so by buy¬
and other textile products.
ing bonds directly from the Treasury . . ."
The
Bureau's
announcement
Senator George,
who voted against the limitations
goes on to say:
,'
'
suggested by Senator Taft, summed up the matter with un¬
The consumption of raw cot¬
exampled clarity.> He reviewed some of the technicalities
ton in 1941, as is natural, again
of the relationship between the Treasury and the Federal
led all other products, reaching
Reserve System, but concluded that if the Government V;!a
new
all-time
record
of
5,207,200,000

offers securities to the Federal Reserve Banks the Federal

thirty, days the Treasury securities which might be held Reserve
"If
by the Federal Reserve Banks at any one time under the
direct sale provision.
;
enough
But Mr. Taft's amendment Was rejected after a brief
George.
but illuminating debate on Jan. 28, and thus another im¬ the size
t

shall

Committee,

Thursday, February 12, 1942

\
.,

enough of them are offered, and if the banks take
of them, we have inflation," continued Senator
We need not argue about it. Everybody knows
of the present deficit.
It is true that it is already
covered by securities.
Everybody knows how rapidly the
deficit will climb.
None of us knows exactly where it will
stop.
I think that the amendment proposed by the Bill
is charged with possibilities of ill which cannot be over¬
stated.
I hesitate to withhold the power from the Govern¬
ment, because the occasion may arise when it must be used.
I should have no very great concern about sending the
question to the Banking and Currency Committee, because
the issue is simple and direct."
Senator Vandenberg, who sided with Mr. Taft on the
proposed limitation of the power, agreed with Mr. George.
It seems beyond question, Mr. Vandenberg remarked, that
if a straight channel is dug from the Treasury to the Fed¬
eral Reserve Systemx,that channel is one of potential in¬
flation.

is twofold," said Senator Vandenberg.
"I freely concede that there may be a borrowing emergency
which the Treasury may confront, which temporarily may
require some sort of a recourse of this nature; but along¬
side of that, and paralleling it, is the emergency which we
confront in respect to the fiscal situation and inflation.
The amendment proposed by the Senator from Ohio does
not close the channel.
It opens it precisely as does the
text of the bill.
But the amendment proposed by the
Senator from Ohio puts just one small dam in the channel,
which has to be recognized as a means of protecting the
things we all recognized as needing protection when this
phrase was written into the law in 1935. The amendment
proposed by the Senator from Ohio leaves an emergency
power for any financial necessities which the Treasury
may confront.
It simply insists that the exercise of the
power shall be confined to an emergency, and shall not be
used beyond an emergency necessity.
I submit that is
simply fundamental, elementary prudence,, if we have the
slightest realistic interest in preventing inflation."
In final comment, Senator Taft remarked that no one,
either in the Government or elsewhere, has stated that the

in-

31% over the consumption of 3,961,700,000 pounds
reported for .1940.
Wool

54%

consumption

amounted to

1941

652,200,000 pounds,
than the 21-

greater

high of 422,400,000 pounds

year

established
1941

total

1923,

scoured

the

wool

con¬

sumption,

133,300,000
pounds
carpet-class wool
518,900,000
apparel-class

represented
and
wool.

The favorable 1941 wool

performance
to

the

for

due primarily

was

Government's

textiles

wool

demand

for

the

na¬

tion's fighting forces.,

Rayon consumption in 1941
(yarn plus staple fiber) aggre¬
gated

586,000,000 pounds, an¬
high mark, surpassing

other

the

new

record

20%.

The

during

character.

three

was

primarily

was

sumption

year
by
for rayon

demand

1941

civilian

"The emergency

pounds,

crease

Banks will take them.

Con¬

last

rayon

year

one-half

and

times

large as it was in 1931, a
performance unequalled by any
as

other textile fiber.

Approximately 2 5,000,000
pounds

silk

raw

were

con¬

sumed in the United States last

the

year,

1920.

smallest

This

estimate,

deliveries

total

figure,
as

since

part,' is

"December

silk

American

mills

The

was

not

announced.

raw

silk

consumption last year

was

due to the cessation of im¬

from

ports

Japan

low

during

the

last five months of the year and
the subsequent reservation of
the

country's

raw

silk

stocks

for military and naval use only.
The
1941

following

table

consumption

main textile fibers

of
as

shows

the

four

compared

with recent years:
(In millions of pounds)
1941

1940

5,207.2

3,961.7

3,629.7

652.2

Cotton

411.1

396.5

Wool

1939.

sought is needed or is proposed to be used in order Rayon
586.0
487.5
458.5
25.0
35.8
47.3
the large sums of money with which to finance Silk
the war.
The only claims advanced, he added, are that the
Total
6,470.4
4.896.1
4.532.0
powers ate desired because "temporarily there may be a
Failing in the attempt to have this provision of the soft spot in the bond market;" because "on tax day there FDR Asks "Parasites"
Second War Powers Bill referred to the Banking and Cur¬ is a kind of bottleneck on funds."
To Quit Washington
rency Committee for study, Mr. Taft then urged limitations
"The Government has not said it has to have this
President
Roosevelt
proposed
which would permit accomplishment of all aims of the pro¬
power in order successfully to finance the war," Mr. Taft on Jan! 30 that all "parasites"
move out of Washington in order
vision, while still leaving at least a small obstacle to abuse
pointed out.
"Some day it may need such power, but I
to make room for war workers.
of the power.
He offered an amendment limiting to a
hope that day will never come, because if we ever reach At his press conference, the Pres¬
maturity of thirty days and to an amount of $2,000,000,000 the
point when the Government must have this power in ident suggested that Washington
the Treasury issues to be purchased directly.
It was this order to finance the war, then our currency will be gone; newspapers print this headline:
amendment upon which a vote finally was taken, and the
In the
there will not be any value left in the currency if the Gov¬ "Are You a Parasite?"
amendment was rejected.
category of "parasites," the Pres¬
ernment ever is forced to the point where it will 1pe required
ident said, were those who came
Senator Glass, whose comments in 1935 were quoted to use it in
large volume."
\
to
the
nation's
capital because
in part, declared in this debate that what he said in 1935
That ended the debate, and those who agreed with they liked the social life or be¬
remains good logic, but that we were not then in war or
cause
their
children
attended
Mr. Taft numbered 25, those who voted for the broad power
school there.
Mr. Roosevelt also
threatened by war.
This is merely a temporary device numbered
51, and 20 Senators did not vote.
remarked
that
during the last
proposed by the Federal Reserve Board for the present
war many of his friends had come
emergent situation, said Mr. Glass.
Senator Barkley next
to Washington chiefly for a good
entered

the

debate

and

discoursed

technicalities

Senate
ket

procedure and on the relatively modest open mar¬
purchases of Treasury securities by the Federal Reserve

Banks

after

the Pearl

Harbor disaster.

insisted

power

to obtain

1941 Textile Fiber

Consumption Again
Breaks Records Due To War Requirements

that

the

provision of the War Powers Bill would not compel the
Federal Reserve Banks to purchase Treasury securities di¬

Due

to greatly

increased war requirements, United States con¬

(cotton, wool, rayon and
states the current issue of

sumption of the four major textile fibers

silk)

again broke all previous records,

rectly from the Treasury, but merely would give them the the "Rayon Organon," published by the Textile Economics Bureau,
right to do so. Senator Vanderberg asked for clarification Inc., New York City. Total consumption of the four major products,
of some points.
And as the debate continued, statements says the Bureau, aggregated 6,470,400,000 pounds, as compared with
4,896,100,000 pounds consumed in4
were made which illumine the whole problem.
textile fiber consumption dur¬
1940.
The magnitude
of these
"The amendment," said Mr. Barkley of the provision
ing 1941 indicates the impact
figures is strikingly revealed by
of
military,
naval, industrial
in the War Powers Bill, "is intended to facilitate, insofar the fact that the 1941 increase
and consumer demands for tex¬
as
it may facilitate, the financing of the war obligations. amounted to 32% as compared
tile products which have arisen
with the previous year.
The pub¬
We do not know what is going to be the result.
None of us
as
a
result of this
lication states:
country's
knows how

large our Government obligations

may

be before

The

tremendous

increase

transition

from

the

time, adding that they never did
work but had, in fact, im¬
peded the Government.
He fur¬
ther declared that by making it
uncomfortable for the "parasites"
there now they may be induced
any

to leave.

The President also said

that under his

war powers

the

authority

ing

quarters

he had

requisition

and

offices

liv¬
un¬

essential persons.
It
an

was

recently estimated that

additional 85,000 war workers

would

required this

year

and

that this influx threatens to over¬

tax

housing

and

other

twilight facilities in Washington.

public

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4045

155

the world and

THE FINANCIAL SITUATION

dislodge them. It. would be

feat for

no mean

(Continued from First Page)

fondest

hopes about Hitler's defeat be realized within
although in the latter event it is to be hoped that
we
of Russia would be forthcoming to make the task
''war aims" which have been annunciated from time to time
immeasurably easier. It certainly would be humiliating
—establishment of the "four freedoms" everywhere in the enough as well as unfortunate in other
highly important

struggle upon which
making this assertion

world and much

our

have launched ourselves, and in
in no way refer to the Quixotic

of the

same

order.

Materials,.prices, while, con-,
tinuing to rise through Novem¬
ber and
December, have not
kept pace with the stimulated

the combined forces of Britain and the United States should

These latter

are

left

wholly out of consideration, because first, they are
mostly unattainable in any event, and second, they are as
much associated with what is known as "winning the
peace" as with winning the war. Quite apart from all this
nd also aside from difficulties we may encounter at any
peabejtable with our allies, 'we, along with certain or all

the year,
the help

rental

possibility. »

ings of $20,000 and less, com¬
piled by the Bank Board's Di¬
vision
tics

Research

ciation and the

e/'o Of
total
Number

Savings
loan

Mut.

Other

The

obvious.

nificent

Bataan

Let

stand of

not

deceive ourselves

American

about the mag¬

and Philippine troops

the

about the equally magnificent qualities
of General McArthur's leadership. ? These things will go
down as legends in the history of our armies,, and justly so.
;but their effect upon the probable outcome of the Japanese
:
campaign to the south is another story. With the fall of
! Singapore,; their military significance still further dimin¬
•

ishes.

peninsula

He would be

foolish optimist, who supposed that

Urban

home

Home

clined,

Board

report.

Savings and loan

last

beyond Burma, India are in jeopardy.; It, is;
masterly campaign that Japan has mapped out;
.for herself,; and to this minute^ it is succeeding with onlyi
.incidental reverses or delays! —„v* •
•*
/- !
" " The strategy employed is, of course, not without weak-i
inesses,--or would not have been, had we been prepared to:
) act with dispatch and in force. The positions assumed may;

justed

over

all types of mortgage lend¬
during the year by account¬
ing for more than 31% of the $4,-

the

base

Board's

less^-

Banks

were

and

total,

while
third

The Bank Board

in, its advices also said;.
v

December

mortgage

ings of; $392,000,000

November*

record¬

ily type

The

ing
their

i or may

not remain permanently vulnerable, in certain par-)
rticulars, but, it may be taken for -granted that if Japanesei
; forces are
permitted to continue their present rate of prog-;
-•
ress (even
with the losses they are suffering) until they
; establish .themselves firmly throughout, the; - Easti: Indies,!
!

Malaya and Burma, to say nothing of the other possibili¬
ties we shall find it." a titanic task to "go half way around
.

...

......

-v

that "the trend of mortgage financing

has

downward

not

followed
of"

which;

indicates

; the r

activity,,
current

lending to other forms of

) loan business."
^.Increasingly affected' by

decline

Commenting
of

trends

costs and
ma¬

their

and

that

extremely

for people to withdraw
savings and put them in
if they wished to do
so,

been

the

fects

emphasized

healthy situation

bond

only

ef¬

program

when

are created

chase.

The

anti-inflationary

the

achieved

ings

for

source

buying.

President

that this is
since

usual

Bond

League

are

new

sav¬

bond

pur¬

New

going

money

associations

investors

from

old

into

the

and

November

new

totaled

$97,621,000,
which
is
19.1%
greater than in November, 1940,
Mr. Cannon said.
about

8.2%

was

While it

under

greater

than

pointed
an

savings
out

than

either

out

enormous

ability

the

was

October, it
$1,000,000
August or

that

appar-

volume

developing

rising

which

come

national in¬
the main has

faster than the cost of
Money has been coming

gone up

living.
into

the

large

totals at the
defense bond

that

associations "at

the people
bonds was
in volume.

exactly

who

same

these
time

buying

take

Series

by
E

increasing steadily
"
:■)

Withdrawals for various pur¬
.for which people save

poses

from the down payment
house to the settlement of

money,

De^

; ently

some

16.1%

the relationship

over

accounts,

would

Defense

Bank

emergency expense, were
less
in
dollar volume
October. The net gain

than in

material

rentals, the Bank Board

report said:

bonds

not

decrease,

during

building

just

September.

was

offer-

are

sale

construction

36%

for

cited
as
further
evidence,
along
with
the
figures, that
already-accumulated funds have

Housing provided

cember.-

their

Research

least

tendency

bonds

♦

•

savings

many

simple
I

by government funds registered

shift in emphasis from construc¬
tion

this

the opposite.

new

movement

residential construction

'.ber

the

that

counters

thus

greatest, 71%. During Novem-

;

the

own

;

fact

announcement

.-and loan associations
^

the

;; November. ' It was pointed out

the

The * Lea g u e's
added:
•*, > v >•

.17%, and apartment houses the

operations

preceding

bonds

the

above those for

000,000,

June

building

disturbing their existing
savings very materially to do it.

One- and two-fam-

the

savings,

were not

100.

of house

sustained

$15,-

since

Association
month

with¬

money

figures show that at
least up until the end of Novem¬
ber people buying defense

building permits were .issued
during
December
for
16,324
privately
financed
dwelling
units, a reduction of 8,100 from

;

were

month

said that the

period,

by the

largest volume of
July and the

since

League pointed out, Fermor S.
Cannon, President of the League,

Figures reported by the U. S.
.Department of Labor show that

second with approxi¬

with about 17%-

com¬

were

taken

Division

and Statistics
;

$20,000

trust

1935-1939

entrance into war, the
States Savings and Loan

United

housing has de¬
the seasonally ad¬
index stood at 133% of

ers

was

country's

new

average

recordings

100

any

the

and

the

bold and

Bank

associations maintained their lead

Java, Sumatra-and Rangoon were not seriously threatened, mately 25% of the
J or who did not realize that at least the northern coast of; individual lenders
Australia and,

ume

Federal

700,000,000

from

loan

sixth successive month the vol¬

the 1939 total by 35%—economists
Loan

44%

and

peak of June, 1941.

of the

panies

1940,

volume

and

from the level of Decem¬

ber,

amounted to nearly
$5,000,000,000
—17% above 1940 and exceeding

■

;

32%

in the
during 1941

671,261,000

characterized

shortages as existing in¬
declined, new resi¬
dential construction during De¬
cember registered
a
drop of

financing

States

783,177,000

second

drawn

terial

United

'?;■ 218,494,000

198,443.

money

smallest

ventories

Near Five Billion

55,845
395,556

1,628,407 $4,731,960,000

new

long and carefully planned their course of
'empire and have systematically prepared for its execution.;
-That we have here arrayed against us no strutting Mussolini
at the headfof a fragile Italian military machine, is quite

Money In Savings,
Bldg. & Loan At Peak

...

mtges.

Total

reasons

evident that Japanese

1,165,435,000

banks

sav.

Individuals

now

352,299

cos.

companies

that the recent OCD and related
paign in the Far East would quickly collapse under even
•moderate pressure. There is; too much reason to fear that disclosures assume real importance—-the(se and the fact
they
this wholly unrealistic conception of the situation in* the are symbolic of so much of a like, sort that, Is
staking place
in Washington.
Western Pacific still' lingers in many unthjpking hffiids)
f.
-fr\
! despite the fact that a glance at the map, one would sup¬
This war is a sombre
business, and it is time we
pose, would quickly dispel such easy going notions.
The accorded it that status—all of us,
including the reformers,
fact is, of course, that Japanese depredations in Asia far
the dilletantes, and the
stage managers.
ante-date Hitler, and the notion of a "new order" in Asia
was proclaimed long before the "low countries" were in¬

it is

amt.

544,463 $1,489;909,000
81,801
403,684,000

Banks & trust

•

more,

Amount

and

assoc.

Insurance

Mortgage Bank-

Association:

ers

;

What

Statis¬

cooperation with Federal Home Loan Bank presi¬
dents, savings and loan offi¬
cials, the American Title Asso¬

•

have

and

With these

leaders

costs

Following is a table on all
1941 non-farm mortgage record¬

vaded.

building

when
costs
were
rising very
rapidly in the face of practically
unchanged rentals for the coun¬
try as a whole.
"
j

China, New Zealand, Australia, and possibly the Philip¬
pines, the question is not so much one of giving aid to native
those
who^re fighting with us, are definitely committed to
peoples in their struggles against an aggressor bent upon
the destruction of the armed
might of Germany and Japan, their enslavement, as it is one of a
struggle between great
Failure to accomplish this titanic task would, we suppose,;
be rather widely admitted to be tantamount to losing the powers; some occidental and one oriental, for control of
territory mostly inhabited by myriads of unarmed natives,
war.
Certainly failure to compel both Germany and Japan often
backward arid not always too much concerned with
to disgorge their conquests, or the vast bulk of them, would
what is taking place. China has been and is
be universally, and inevitably regarded as failure to win
doing remark¬
ably well, all things considered, but her ability to continue
the war.

It is for these

the

current

nitude, it does represent a gen¬
uine reversal from the situation
in the
third quarter of 1941

Let it not be overlooked that in the Far
East, outside of

indefinitely once the Burma road is cut, is another matter.
plain facts in mind, let us take the measure The Australians
and New Zealanders are not numerous
of the task before us. Clearly, if the German war machine
is to be overpowered, or even if conditions within Germany enough and are without extended industrial equipment.
They could not be expected to shoulder more than a moder¬
well calculated to induce an internal collapse are to be
ate share of the burden of
beating the Japanese back to
brought into being, Russia must be the instrument with their own
doorsteps. As to the Filipinos, as surprisingly
which the consummation is effected. The Reich is beyond
the reach of what forces either the British or we are able sturdy as has been their resistance, they can scarcely be
counted upon heavily in the future. The white man's bur¬
to muster at least for a long while to come. But if Russia
den in Asia is the more
grievous by reason of the immense
is to be equal to the role fate appears to have assigned her,
distances; he must travel to bear it, and it is this
burden,
she must be supplied with vast quantities of material—at
the earliest possible moment. It might or might not prove though heretofore almost wholly the burden of the British
Empire, that we have undertaken to bear in very large
possible for that gigantic nation with anything short of
part. We are beginning to learn the difficulties entailed
maximum support to stand the Germans off through another
by a far-flung empire. We are destined to learn more of
summer until winter again comes to her rescue.
The risk them in the
months, and years ahead.
of her being unable to do so would, however, be too great
The task is not beyond us if we are
to be assumed, if avoidance is possible.
In any event, if
ready to pay the
Russia is to make real progress during the coming year in price and if we are wisely led. It
would, however, be
crushing the German war machine the most that we can rather worse than foolish to suppose that we can perform
do to supply needed equipment will be little enough. With it qut-of-hand in a limited period of time.
It would be
nothing to divert us, the task of making and transporting equally foolish to suppose that we can perform it at all if
equipment to Russia in thei required amounts,, iri the re-: at the same time we continue ceaseless experimentation
J quired time, would try our energies and resourcefulness for in. so-called social reform, insist upon the waste of resources
and- manpower in dilletantism and
! months to come—and failure to<
dp so would entail risks of
frivolity ^ conceived in
(the■■first order ofmagnitude.!
!
'
i QU atmosphere* of a fashionable tea party, and spend huge
And we have a great deal to divert us. -Time was when sums in £tn endeavor; to bolster morale by.
shielding favored
the habit was all but universal, in this country at least, to groups from sacrifices all others—and in the long run
quite
regard Japan and her imperialistic aspirations as but tails possibly.the sheltered groups also—must endure. It is in
to the Hitler kite. "Just another Italy," was the way manyi light of these considerations as well as, possibly more
than,
•referred to Japan in asserting the belief^even-after Pearl a matter; of budgetary management that the
Washington
Harbor—that once Hitler was defeated the Japanese cam¬ policy of profligacy as usual, is to be so greatly regretted.

the

and rentals is not
great in mag¬

Although

between

movements

respects for the "democracies" to find themselves presently
in the position of
owing their salvation on both fronts to
Soviet Russia, but
something of the sort is well within the
realm

market.

difference

,nih
.v
r

receipts for November was
3.4% greater than in the month
before.

FINANCIAL CHRONICLE

THE COMMERCIAL &

670

Thursday, February 12, 1942
this:, that it

Property Rights Invaded Through Regulations
On Private Properly By Govt., Says Gadman

;

the

Colonial

the

of New

right of private property ownership will survive in this
country .'for many generations if the American people realize that
this right is the foundation of. their welfare and security, it was

President with the County Bank & Trust
Company, Co., Cambridge, for the last eignt

Kleeman,
Trust

York, announced

Feb.

9 that the New York State Bank*

ing Department had approved the
application of the Colonial Trust
Company to make its Rockefeller
Cenier location, Sixth Avenue at
48th Street, the central office of

and

Vice-Presidentr,

as
Treasurer.
years,

asserted
can

Trust

Conference; of the; American Bankers Association

With expression of
his long period

appreciation New York.
Mr.
Cadman, v \vft63>-~
of faithful spoke on the subject "The Social
definitely control the rights of
service, the Board of Directors of Justification for the Bights of
Prif 7the individual to dispose of his

Colonial thus becomes

;

politically implemented
wages,
hours, prices,
the direction of output, credit,

through

York.

The

arrangement became
Feb. 9th, when the
began to function as the

effective
bank

Woodsiae office of Manufacturers
Trust

John

Co.

Cunningham
is manager in charge.
Frederick
W. Bruchhauser is tne

Vice-President for

and

Brooklyn
National

Trust

Queens.

the

rectors

supervising

all

Manufacturers

The Di¬
Standard

former

will

Bank

offices
Co. in

serve

Advisory Board for the Woodside
The year-end statement
the Standard National Bank,

of Feb. 28th.

will be effective as

Wright is President of the
Montgomery
County
Board
of
Prison Inspectors, and Treasurer
of the Board of the Pennsylvania
Working Home for Blind Men.
He is also

member of the Man¬

showed deposits of
$5,000,000. The statement of
stated,

over

condition

Manufacturers

the

Trust Co. appeared in our

Jan. 8

page 133.
Manufacturers
Trust Co. now has 68 banking of¬

issue,

fices in Greater New York.

■

man
*

Board

the

Bank & Trust

the

Trade

Co., New York City.

The Board

Directors

the

Ossining Trust Co., Ossining, N. Y.t

announced

Feb. 5 the election

of Harry C.

P. Davis has again been

religious, and military.
they have rarely recognized
property revolutions as such.
But

re¬

Conshohocken, Pa.,

a po¬

sition he has held for the past ten

the Philadelphia "Inquirer"

years,

announced

He is

Spencer Jones was

of age.

years

31/

Jan.

Vice-President

First

Jan. 30; A. A. Garthwaite, Second

virtually

Spencer
M.

Donald

Jones

and

have

Horsey

become
Assistant Trust Officers, and Miss
Claudia Ramey, Assistant Cashier
and Trust Officer.

Cadman,
{'might be called the bargaining
power of labor."
"Then," he said,
"there is the body
of evidence
which can be designated as Gov¬
ernment
ownership.
Here
the

the

Government may or may not en¬

ations?

touched property issues very toward property is in the field ol
lightly. But the Marxiam re- finance," said Mr. Cadman, who
bellion which began with the further observed: £/
;,
/
publication of - the/ Communist \ V The financing of agriculture,
Manifesto nearly one hundred
private home ownership, rural
years
ago,
concerned
itself /electrification systems and ap// pliances, is now generally pracprimarily with property as a

signed
r
*

Mr. Wnite has

President.

fundamental social

mal

Officer of the

Trust

Bank of the Manhattan Co., New
York City, to accept the post. Hd

Mr.

Cadman

institution, r

pointed

out

ticed.

that

William A.

Ranneyi

succeeds

Dr.

who

prevented by the Cl'ay-

; ton

was

Act from serving

theOsin-j

ThO

Ann

Arbor

Savings and
Bank,- Ann Arbor,

the attitude toward
property rights, which affects us
most in the realm of taxation,-be¬
gins to appear with our early ex¬
periments

progressive
into

came

Federal Deposit
Corporation
is

a nee

owned,

•

and

operated

the

almost

partly
entirely

an-;

that

William

Post,'
Secretary-Treasurer of the County!
Trust Co., White Plains, has beeri
nounces

■

elected

Director.

The
Poughkeepsie Trust CoJ
Pcughkeepsie, N. Y., was author-'
;ized by the State Banking Depart-i

'ment

Jan.

"capital

-from

stock

its

increase

$300,000 td
capital set-upi

the

ferred

The new

"A"

stock

divided

70,003 shares of the

of $5 each;

par

and

into

value!
!
|

which

sum

the

tax

divided

stock-

30,000 shares of the
of $5 each.

into;

loss account,

value,

par

iu*"»ii

—

;

Trust Ca., Rochester,
received
permission

N. Y., has
from

the

State Banking Department to re■

duce, its

from $5,360,000 to $5,280,000.
The hew
capital crnsists of 40.000 shares of
convertible preferred stock of the
par value of $50 each and 164,903
shares

capital

stock

common

"stock

the

Boston

office

Mr, Beal has

several

times

more
striking than any
these, when the full force of
analysis
is
applied,
are
the
theories deriving from the abil¬
ity of the government to create
purchasing power through the

utilization

review

which

■.

O. Wilkins was eVgted

Myron

Vice-President

the

National

Shawmut Bank of Boston,

29; at

Directors,

Jan.

meeting of the B^ard of

announced

Mr.

the
in

Wilkins

Boston
its

has

Jan.

been

"Herald"
30

issue.

associated

Nichols,

Vice-President

National

Shawmut

•

the
was

Newly
Samuel

Rugg.
elected.

elected
Wolcott

members
and

wete

Robert

Other members

were

B;
re¬

the full sig-

individually,

this

none

room

the

sented
-

are

"affected with

lie'interest."

With-the

foh the

•

economic

for

can

the

changing

concep¬

exploitation of

men

but.

are

our

fel¬

not ready

government ownership; we
no
faith in bureaucracy;

do not

believe

that

wealth

created

by decree; and
are far
from ready to ac¬
cept the dictates of a super¬

state, managing and directing
production and distribution

/ the

of our wealth.
,

Democracy

is. essentially

slow process; it is cumbersome,
expensive, and often inefficient.
;■

But this far in history it is the
only way of life which has
made possible the enjoyment of

human freedom.

It will survive

here for many generations, de/

in the

regulation in 1933, the employ* ;
ment of private property in'the /
For better or - for .worse, warcorporate .forms, long reguMed
by state security commissions; iV'time' controls foreshadow the
future*: more clearly, than the
came under the pur-view. of 'the
national government
In: 1934 /theoretical-programs.
the marketing of these secur¬
The point
ities was regulated / so • as to
to remember is

the doctrine of

astute observer can readily see

toner temper and direction "of this planning, the emergence- of
collectivist thought.

have

future

advent

of the Securities ahd-Exchange

the

pub*

other"; the recently
proposals for inter¬

pump-priming and the
body of financial wiz¬
which
well
be
might

low

which is to be built when peace
is
finally declared,
and the

owe

As
a
people we are fully
ready to accept the restrictions

ning

"we

In conclusion Mr. Cadman said.
/

•

because

debt,
to

tions of private property.

■'/?

is said

inexhaustible

tion

unmis-

best be identified

Federal

Treasury—in
body of theory more than
in any other is the clear indica¬

-terpretation
of
constitutional
rights, .toward a point of view'
can

com-

this

sub-

trend away from the
doctrine of natural rights; away
from the generally accepted in-

which

mature

Savings; the doctrine

characterized

takable

the

finally

was

of which

each

ardry

are
socially
But taken in their

unlimited

size

whole

measures

entirety, they show

•••

aban¬

national

■

war
an-

announced

does not yet
■ ./-v-

justifiable.

States

which firmly held that
had gone out of style

unimportant

his

regulations, rest dn * the'theory

these

United

which

the

scribe to the belief that certain
of

theories

exploited by
experimentation,

doctrine

and

--that all of- the activities ^repre¬

elected Chairman of the
Clearing

House .Committee.

use

the;

Bank,

most

economic
been

U pletely deflated by the necessity

individual is free
happened is only a part of the
property as he ? sees
picture, r We come now to plans
fit and conforms to the idea
•;" and proposals for . the further
that property rights are social; .v Revolutionizing of the institu¬
Here again the movement; de4
tion of private property.
x;,
rives from collectivist concept
:/// -/;.'' Planning /■•/
tions.
The anti-trust: laws; ithd
A large; number of individuals
interstate commerce laws; ^thd :;
and organizations are now planpublic utility and Federal trade
to

he'd,

•

va¬

/- the items, thus far enumerated
; is,particularly
startling. Indeed.

tion that the

■

;•

group

of property,

Taken

the

savings
•

the restrictions on the use of vz cfo 11 pet i; v i s t; namely, that
private property.
The, whole / ?■ -property should be owned and
spirit in the program of control / operated for the benefit of col¬
runs contrary to the general no¬
lectivity. Rehearsal of what has

"Weekly Bulletin'^ of Jan. 30.

the

property rights, they
direct cost on the

nificance of which

the

have

economy

And although none of
be classified as an in-

imp'ose

doned the gold standard. Pump-

socializing
to catalogue.

appear.

•

since

owners

credit.

for

vasion

a war rev¬

the

less easy

are

can

bank

wholesale

litation.

these

week, instead of

hour, it would be profitable to

rious kinds of relief and rehabi?

had

Herbert E. Stone was re¬
-par value of $20 each, it is learned past.
from the Banking Deoartmeht's elected Secretary of the Clearing
House
Association.
;
Henry ! J,
*

of evidence
might be classified as regulation

its

cognizance of

priming in all of its variations,
forms

opment of public works and

measure.

The

Clearing House Associa-j
tion, at its annual meeting, the

this

took

But

are unemployment and old age
.insurance, the large scale devel*

profits

appropriation of pri¬
vate property under a collective
ist conception.
/

Boston

Jan. 21,issue.

banks.

which

In the iol-

excess

1936

ward

Thomas P. Beal, President, of
the Second National Bank of Bos-!

reported in

imposed

iri-

and, although subse¬
quently" repealed, it "is* "how
again under discussion in Con¬
gress.
For better or for worse,
the tax trend is definitely to¬

Clearing Ass'ri

Boston "Herald"

were

Security in 1935. The undis¬
tributed profits tax was Voted

j
i

ton, was elected President of the

an¬

fur¬

a compulsory
savings law, both for individuals
and enterprise" and added:
V

private property for

Other

cial

Beal Elected President Of

of cap¬

Payroll taxes
appeared under the guise of So¬

-The Lincoln-Alliance Ba^k and

was

enue

•

common

taxes

lowing year

estate

charge

all

augurated in 1916.

recommend

a
dividend, payable Feb. 2, for
(2.) $25,000 p*r value of pre-, the half-year ended Dec. 31, 1941,
ferred stock "B" divided into at the rate of 8%
actual, less in¬
2,500 shares of the par value come tax, £806,345 and a balance
of $ 10 each; end
* 5
of £123,681'; to. be carried forward
(3)
$150,000
par ' value ; of to the current year's profit and

taxation

of £1,233,026 from

Directors

The

come

leaving

must

the

shed

"the constant talk of

Benefit of a
collectivity;
namely, the bank depositors of

same

Federal

tax,. £606,345; to contingent
account for war damage to bank
will consist of:
•'
'
t
premises, £250,000; to reserve for
(1) $350,000 par value of pre-;
future
contingencies,
£500,000.

'$525,000.

will

Mr. Cadman

/the

law irt
year. Death taxes are /
as
old as the Virginia colony ;
which attempted to impose one
in 1687, but it was hot until
1885 that New York passed: a t:
death duty which produced at :
significant volume of revenue; h

the

net

profits for the year 1941
amount to £1,969,288 which, with"
£620,083 brought forward from
the previous year, makes £2,589,371, out of which the following
appropriations amounting to £1,356,345 have been made: To in¬
terim dividend, paid last July 15;
for the half-year ended June 30
at the rate of 8% actual, less in-i

others,

collectivism.

the

ital gains first became a

Midland

National Bank of

1913.

in
of

question

two

which

ther light on the trends toward

Insur-

change increases rapidly.-, -The
Federal income tax was adopted

Bank Limited (head office Lon¬
ing institution and also the First
Croton, of which don) report that, full provision
he is President.;.
'v/ /
A.:.;j having been made for all bad and
doubtiul debts and contingencies,
The Ossining Trust Co. also

He continued:

From that time the tempo

;

Arbor Bank.

Directors

this

added

government
and the levy on the deposits oi
operating banks, although it is
not called taxation, is in effect

;

income

practice

Mich., has changed its title to Ann

The

the cantonments,

purposes,

swers

i/xxvi

The

the change in

early as 1911..

Commercial

additions

the airports and similar install¬

; v

taxes which

re¬

the

and

designed and con¬
structed
for
special purposes;
the expanded facilities for nor¬

factories
factories

White of White Plains

through the process of borrow¬
ing:—the huge munition plants,

said J Mr.

speaking of the

were

when the

Atuminous Coal Act of 1937.

evidence,"

What will the government do,
war is over, with the
excess
plant
and
equipment
which
it
is
now
financing

;

American

own

Executive

Cashier;

But

proposals and plans, the direc¬
tion of which is partially fore¬
cast
in, the wartime
regime.

Vice-President; Donald P. Horsey.
President; Frederico F.
Mauck, Solicitor; David M. Hayes,

Revolution ter into direct competition with
problems of private enterprise."
C "But perhaps the most extensive
property, and strange as it may
seem,
the French Revolution evidence of the changing attitude
Our

elected head of the First National
Bank of

Ever

litical,

raised

named

Henry M. Weitzner, builder and
contractor, has been chosen Chair-

history of mankind.

in //"The next large classification of

men began to live in or^
ganized groups, they have been
rebelling against tyrannies, po4

charitable activities.

civic and

common

since

Committee of the George
School at Newtown, Bucks County.
Following his retirement from the
First National, Mr. Wright plans
to devote; much of his time to
aging

office.
of

the

at all.

not

nomenon

instruments

Actually, the necessities of war bring into b^ing a
degree of regulation and control which is terrifying in its
similarity to the very total¬
itarianism against which we are
making war.

in
1935, fixed production quotas in
the oil industry; and by the Bi-

■

other

enterprise.

by the Connally Act which

But from time to time, as
get an objective look at the
picture, it is evident that we are
in a property revolution, a phe-i

xiety.

Mr.

all

and

inherent

private property is now transferred to government, where it

The

created.

are

of influence which

heretofore

was

the First National Bank of Phila¬

delphia,

machines

war

for

vate Property" stated that "liv4
property;A/////// /
Feb. 9, accepted the ing in and observing the social i
; For a good many years the
the, only commercial bank in New retirement of Alfred W. Wright, upheaval which has been in pro j- j Supreme Court held that the
York City which has its central Assistant Cashier.
On April 15th gress since the
First, World: Wan ./regulation of wages and hours
office in Rockefeller Center.
j of last year, Mr. Wright, who*
we recognize the extent to which
V- was. an unconstitutionalinvastarted with the Centennial Na¬
property rights have been- in¬ zsion of property rights.
But in
The business of the Standard tional Bank in
1866, ten years vaded."
He went on to say: ;;
] .//1938 . the Federal Government
National Bank, located at 59-28 after
the? institution
organized,
It is not easy to appraise the
passed the Fair Labor StandWoodside Avenue, Woodside, Long
completed 55 years in the employ¬
changes which take place in a z ards Act, which legislation was
which
has served the ment of the First National Bank
Island,
major revolution: analysis/is -v declared constitutional in 1941.
Woodside community for over 15 and the Centennial National Bank,
colored
by personal
interest; ^Control over production, re¬
years,
has been
absorbed into which was merged with the First
stricting private property in natfaith is clouded by pessimism;
Manufacturers Trust Co. of New National in 1925.
His retirement
resources,
is
illustrated
and hope
is obscured : by; an4 C ural

the bank.

profit, that these vast

whole train

Feb. 3, by Dr. Paul. F. Cadman, economist of the Ameri¬
Association j in an address delivered before the Mid-

tion

;

Bankers

Winter

under the stimula-

rather than

The

Arthur

is by the distribupurchasing power and
placing of orders under the
direct decree of government's,
of

tion

•

spite every adverse symptom, if
and
as
the
American
people
realize that the right to posseSs
and to enjoy and to bequeath is
the

fare
V

principal source Of the wel¬
and
the security
which

they so much desire The incen¬
tive, harnessed to the love of
liberty, is the' social justifica¬
tion
of
private property.
It

671
forms

:
1

and

the

basis

collective

derlies

the

individual

tional character which
tified

the

term

come

its

iden¬

"responsibil¬

House

has

the

which
the

"President Roosevelt's lequest to
Congress on Feb. 2 to authorize a

$500,000,000 loan to China for the
purpose of rendering financiai aid
was
passed unanimously by. the

and

unaniihity*

enthusiastic

received

and

testify to the
respect* and ad-

people of this country have

our

earnest, desire - and•, deter?
mination to be concretely help¬
ful -to-

*v *

the

United

States

Co.

department.

claim

favor

The

assets

claims

United

-upon

measure was

Press

the

New

concretely helpful to

.almost five years
fense

which

will

:far

an. enemy

in
equipment is - an
inspiration to the fighting men

our

made

against

resolute de*

superior

partners
in the great battle for freedom."
Praising the "gallant resistance"
of the Chinese armies, Mr. Roose¬
velt expressed the hope that the

and all the

valid in New

the

decree

York, advices Feb. 2

New

York

of .vthe

sacrificed

"Times"

from

destroying

their

toil

that

that it was, with Associate Jus-

i tices Reed

contribute

substan¬

they

and

people to meet the economic

financial burdens which have

upon
invasion and

tion

problems

them

toward

solu¬

production

and Robert H. Jack-

fund, the President said that such
additional assistance "would
to

serve

strengthen China's position
her

capacity

function

fectiveness in

was

addressed

and

economic

burdens

which

the

United

armed

resistance

our common

now

what ; are

I send you my

Civil Raid Defense
President

Jan.; 27

Roosevelt

the

singed

: v,

served

was

the New York State Insurance

Department,

attention the

existence of

the
;v

common

victory, that shall

beours*

has already, authorized,

gress

assistanc

would -serve

:-h .'strengthen China's position
•v- ^regards. bothn her interjiaX ecbh"
*omy and her capacity in: gen¬
eral to function with great

tary

effectiveness in*

mili-

our ,com-

v: i;:.

£ *• ■ £

4w t

th^reforivthe" pdssage

X urge^

\by Congress of apprppriate legislation to this effect and attach

'hereto

suggested " draft

joint resolution which
complish this purpose.

Affairs

Foreign
•House

groups

ac-

the

Feb. 3 and '5^ .respec*

measure xm
'

Civilian

Defense

the-House
measure

vote,

record

the
Feb.-5

Feb.; 4 passed

and the Senate on

completed legislative action.
The text of the

■

;'u-

■

was

the

addressed as President of

source

that there be

of great grati¬

exelusive of odd-lot dealers' short

provide

in
re-

position,
was
433,
compared
facilities, supplies and services for
J with 397 on Dec. 31, 1941.
the adequate protection of persons
In the following tabulation is
and property from bombing at¬
shown the short interest existing
tacks,
sabotage
or
other
war
■

tion

Final
this

Jan.

Congressional

measure

ac¬
on

the Senate and

19 when

came

the

House approved

conference

the

Jan. 8

responsibility for di¬

the

last

business

two years:

1940—

re¬

port. The House's action amounted Feb.
to a reversal of its previous
posi¬ Mar.

tion, since it had voted

day for each month for-tha last
■;

28_^

Apr.
May

485,862
488,815
530,594
428,132

recting civilian defense protection

June

July

31-

the.

War

Department.

446.957
-

479,243

Aug. 30..^—
Sept. 30

474,033
517,713

—

Oct.

31-w-:

530,442
515.543

County, Special Term, Part
1, to show cause why the Superin¬

459,129

tendent

tions to

Jan.

Insurance

be restrained from

should

paying out

not

the First Russian

The

Insurance Com¬

until there

are

further pro-

been

Supreme

t i

followed

o n

Court

decision,

the

was

.31

498,427

487,151
537,613
510,969
496,892

Mar.

Defense post has Apr.
by Mayor F. H. La May

New

30----

29—

June

York

War

named James M. Landis

Execu¬

£ in- full many years ago, leaving
$1^35.000 surplus assets. ' Although the Insurance Depart-

tive Director of the OCD.

Vment" had ""frozen" the fundi

linquished command of the OCD,

478,859

31—

City and
July
Department
control maintained that Mr. La Aug.
Sept.
Guardia: could not handle two
of

proponents

—-

Feb%28

House pro¬

the

Civilian

directed

Guardia

a c

the

relating

1941

jurisdic¬
tion of the War Department.

funds of the New York branch of

pany

insist

visions

any

487,169
470,002

29——
30

———

Oct.:: 31—

....

Nov.

28——

Dec.

486,912
444,745
453,244
349,154

1942—

Jan.

31—

...

Mr. La Guardia on Feb. 10

460,577

re*

York State Courts had explaining Jin. his Jetter to the
4\xrpmi>elled it to recognize the President that /"the original as¬

0th^^New

•

Treasury Puts Employes a
;
/
On a 44-Hour Week

^Mortgage Recordings XSff^
^ Some /tapering^ off of Xher
home-owner

df
all

which

from

in Illinois and Wiscon¬

sources

sin

borrowing

reached " its

October

was

noted

1941' crest
in Novem-r

figures "-made >:available'; op

^eb. 2 by
Bank.

the Federal Home Loan
of, Chicago.- The $31^88,000

'worth

home

■

funds ol,the company, by virtue

year

Whiie the principal of assign§ raeniltb the United* States Gov^

ernment^ does

Case

pany

Assets- taken

by the

.over

State Insurance Department in
vFecent months, it was expected
« in insurance circles that as soon
.

hat

maintained> through
R. Gardner, Presi¬
Chicago Bank, said
in1 the
Chicago district in
the

approximately* 9,467

individuals
gages

companies.

this

classed

the

size
as

home loans, and

this is

treaties

largest number of November

settled
;

many

whose' nationals
surance

cases

would

Mr,

-name

successor,

vvill have full authority.
J/
Senate had voted on Dec.

for

authorize^ unlimited

the

OCD

but

agreed

$100,000,000 limitation

funds

assets.

such
"

the

Treasury Seeks Cash

•v;

this will

probably be the last

nev

Saturday left undisturbed.

that

not

than

trative and
the

■

District
advices

same

Columbia.

The

stated:

The

money,
the
President
brought out, would be employed
providing facilities, supplies
and
services, to include re¬
search, and in the development

order

affects

all

Treasury

Department,

both

the departmental and field serv;

ices, but in view of the fact that

;

the Bureau of Engraving and
Printing and the United States

$3,000,000 of-

personnel services

new

clerical, professional, and subprofessional employees of. the

the

available untiWune 30, 1943, and

Mint
-

the

and

Mint

other

institutions

Service

are

already

operating to a large extent on
three 8-hour shifts each day, the
new

order

will

not

apply

these olants.

adequate protection of

sons
-

duty /will be required
Monday
through
Friday,

the prevailing four hours of

The

the total be used for all adminis¬

;

The Treasury Department advices
added:
/

the issue of OCD admin¬

President-requested
that the $100,000,000 fund remain

borrowers in the three years dur¬

of Illinois and Wisconsin.

'Times"

in-

-' •'

with

istration.

been

hour
from

ment

the countries
own

the luncheon period, to a 44-hour
basis.
As a result, one additional

the duty

when

House, receded from its disagree¬

until

have

peace

-i-entered into with
^

•.

■.

the surplus assets probably will not be

mort?

f^4Jltim"ate disposal of
■V

under, all liens
being
arbitrarily

borrowed

of $20,000

the Mayor's

> The

not

apply in the
iof>foreign insurance com-

.According to Washington ad-,
jfV&Vthe ^comparatively minor
mortgagesVje# ^(4aimso^>f domestic, creditors vices;Jan. 22 to the New York'

was

that

t ^t

November. A.
dent

tion

IJoFXhe assignment, -i■<"£;.::^ Landi^
wha

and to the gov-

authorized for the

31—

The
Treasury is expected to
ing which these figures have been offer tomorrow (Feb. 13) $1,500,:
-ernment
and /people
of. the kept, The estimates are based on 000,000 of securities to the public
;s United States that the-'proposal actual
mortgage, recordings " re^ in order to raise new money for
-which I made to the Congress ported by 77% of the population war expenditures.
It is said that
It is

fication

month.

j. The number of issues
j which a short interest was
j ported as of Jan. 30, 1942,

•

Chicago Home Loan; Bank

President's mes¬ November

Chinese leader, who
the
Executive Yuan and Chairman of
the military affairs committee at
Chungking, read as follows:
sage

ex-

29-

Dec.

hearing ^urgent re¬ corded the last month befor-e the
I'have heen settled, in accord¬
Secretary
of. the war, I however, was still 25-:9^ ance
.-with State laws, the FedTreasury Morgenthau,Secretary,
greater Hhan in November of the ^'eral' Government will seek- the
of War Stimson, Secretary of the
previous year, so that the margin Vcusto„dy»^of surplus
assets ^ by
Navy Knox and Assistant Secre- of increase over i 940 which had
j; "virtue of the foreign ownership
tary of State Breckenridge Long. been characteristic
of such
throughout the
debate

the

appropriation to the amount of
$100,000,000 to enable the Office
of

than -5,000

Nov.

from

Without

is-

interest

tively," after

quests

were

short

The Treasury Department an¬
t cl^nisVof
foreign .'? creditors signment of organizing this office
XOOjOOO) and that it is also willing
is- now completed."
He also told- nounced recently that, effective
make available to. China ;iny VagamstT Hie first Russian Insurthe President that he awaited "any Jan. 26, it would
.fiahce -^ Cbmpany.
require five ad¬
During v the
nunitions apd military equipment
prcsbefedings; the * Soviet recog- order from you to serve in any ditional hours' work ' each week
.vhich it is possible for- Britain
from its clerical)employees,
>f-nitibn came, followed by the capacity for the defense *of our
fS*'-.'
-tiCXV
step¬
o supply,
A
>r<*
the Federal Gov- country."
President
Roosevelt ping up the present schedule of
7K
4<
erfimenf s; rights to the surplus said after -accepting the resigna¬ 39 hours per week, exclusive of

ber

of the

approved

Senate

and

of a

will

the Exchange

there

,'mon effort.-* >>

30,

the Conference report to the
House
Managers
with
instruc¬

CbiWa>^^,00a^a;tabbut^$20e-

I believe that such additional

;

was

mit

-•'/' 1

interest

accounts

isted, or in which a change in
J the short position of mere than
i 2,000 shares ^occurred during

authorizing

bill

York

order

short

returnable on Feb.
II in the Supreme Court of New

Feb. 4

deal¬

30 settlement

dealers'

which

under

T h i s"

personal greet^

Signs EiS! For

to place the

ceedings;;

enemies.

Jan.

Pres.

House adoption of the Conference
report on Jan. 19 came after the
rej ection, by a vote of' 167 yeas
to 172 nays of a motion to recom¬

tion and procurement which are
essential for the success of their

Announcement
was j.made jigi
and, financiaf assistance,. Soinlg London oh Feb". % that the"
beyond in. amount and different Government is- prepared to - lend
ill form from -such- aid as< Com

•:

con-

recognize acts of the Soviet

solution of problems of produc¬

extension to China of economic

there,

government "which

odd-lot

States by its policy of recogni¬
tion agreed no longer to ques¬

of the House

urgent-need for .the immediate

courts

refusal by New York

total

issues listed -

Ings and best wishes; I;r£xtend noted in the Feb. 5 issue of the
■<to you "acrossV iand arid
"TimbsV from" which
we
also major,posts effectively.
Since the
"Responsible*bfficials both of
hand
of
original House consideration of
comradeship for;, the quote: ?
this government and of the gov.* *•
'
common good, the common gdalV
Svfi-Domestlc creditors were paid the bill, President Roosevelt has
ernment of China have brought

to my

York

invalid

the

odd-lot

; i .sues

tion."

States

Government

meet; the

financial

and

In his letter the Presi-

Ray burn.
dent said;

Chinese

people

Wallace and Speaker

have been thrust upon them by
y an armed invasion and toward

Congress
Vice-President

New

effort."

our common

communication

United

the

ward facilitating the effdrts: of
the

•

His

the

decree

stituted
r

nowauthorized

Congress

general to
great military ef¬

with

of all to gain the
which we are

will contribute substantially to-

regards both her internal economy
and

tion

hope and belief that

decisions

holding the Russian nationaliza¬

necessary

which will be made of the

funds

In
on

all

As of the Jan.

date,

arid three corporate issues.

'^son not participating.
■4> Associate Justice William O.
Douglas, in the majority opin¬
hazards.
ion, declared that the previous

toward

It is

are now

his request to the Congress
Feb. 2 for the $500,000,000

which

the part

use

enemies."

common

the

confidently striving.

procurement which are es¬
sential for the success of then*
our

sacrifice

victory

and

armed resistance to what

be used

not

predatory armies of:Japan ex¬
emplify in high degree the spirit

and

thrust

could

accounts

all

was

Washington added:..
';

people

fruits

the

and

85,717 shares, compared with 61,705 shares, on Dec. 31. •;
J The announcement of the Ex¬
the change further stated:
Of the 1,237 individual stock
re**

government

confiscation

by the Ex¬

members

nation- of 1967-72 and 2% bonds of 1951-55

peoples of the other V; The court held by five to two

great

Chinese

tially toward facilitating the ef¬
forts of the Chinese Government

armed

lot

the
insurance
business were * issued.
In
January
:!;and confiscated its assets. Un- Treasury confined itself to
I der the Litvinov agreement, the financing a maturing note issue

ment's

was

ers.

financing by the Treasury took
V The Russian insurance firm place early : in • December when
7; ceased- operating in 1918 when over $1,500,000,000 of 2V2% bonds

United Nations.
The

its

firms,

the

Jan.

460,577 shares,
compared with 349,154 shares on
Dec.
31, both totals excluding
short positions carried in the odd-

j Soviet-Union..
Soviet

obtained

from

the

compiled from

member

the

date,

that
as

the

change

money financing
operation until
Upheld the Act of the Federal April since March income tax Re¬
Government in gaining posses*, ceipts and the sale of Defense Sav¬
siOn' of the properties under the
ings Bonds are likely to provide
-f 1933 - Litvinov agreement pro¬ sufficient new money to cover
up
viding U. S. recognition of the to that time. The last new money

existing

business

information

cr.

-/.

"will

been

Washington

settlement

Insurance

Feb.

interest

in¬

the

country have for China"
and also testify to this country's
"desire and determination to be

use

short

Fed¬

J by Justice William O. Douglas,
^

acted

this

funds

announced

deci-

the

State

from

quote, further said:
The 5 to 2 decision, delivered ^

York

accounts

rejecting

defunct First Russian

Federal Government
praise from ;thel American :>nd
reserved
all nther;: freedom'-loving ' peo?
the^rightsto participate in. dis¬
Congress .and the
support it received throughout the J pies. $he tenacity ;bf the Chife
tribution of the $1,000,000 assets
ese people, both armed and un¬
country
"testify Vto the whole-r
Vdf the American branches : '
hearted K respect and; admiration
harmed,;imjhe Tac^xof tremeh^ ^.Stating." that the principal issue
which the government and people
dous hddshi (carrying Jbhjf<£i? was whether the Soviet govern¬
with which the

Supreme Court reversed

! alized*

ruthless invaders of your;
coupr
try has called forth the-highest

Feb.

surance

TheJ gallant resistance. of * the

/'Chinese :-r'armie^
.

eral .Government's

partners in the; great

our

battle- for freedom. ;v«\
■!

support Feb.* 2, from which

•,,for, China, ;They; testify also ;t©
..

feiorti'of the New York State Court of Appeals

throughout

United States

whoie-hearted

sent to.'^GenJ

Kai-shekv on
Feb; 7, the' President; said/that the

by the Congress

miration which the government

House on" Feb; 4 and by the Senatq nh PehC 5 and has how become

"unusual* speed

unusual

acted upon

and

Congress Votes China

| Loan; FOR Pledges Aid

Representativesand

become law.

speed and una¬
nimity with which this measure
was

In a 'message
eralissimo
Chiang

now

The

defense.

law.

Supreme tart Rejects New York's Claims f ? NYSE Short Interest
^.
Higher On January 31
K To Russian Fueids;
Upholds U. S. tat Claim J The New York Stock Exchange

000,000 was passed unanimously
by; both the Senate v-and' the

ity."
This institution is worth
jsaving and it is high time tnat
we

rendering; financial

"aid to China''in thesum of $500,-

na¬

and
are

,-of

purpose

un¬

solvency; it

ing

per¬

and property from bomb¬
attacks, sabotage or other
hazards, in such localities

1941 Cotton Loans
The

Department of Agriculture
that Commodity Credit

reported

Corporation

had made 1,055.482
2,019,355 bales of 1941
States, its terri¬ crop cotton through Jan. 31, 1942.
tories and
possessions, as might Of the total, 107,169 loans on
be in - need of such
protection 393,456 bales were made by co¬
but unable to
provide it them¬ operative associations. Loans were

'•war

the

selves.

loans

United

repaid

79,762 bales.

"Combined Chiefs Of

;

Staff

staff

strategical direction and
operations.
General
Smith's staff of assistants, ini¬
tially about eight officers, will
be selected from officers of the
United States Army and United

Department
an¬
the establish¬
of

"combined chiefs

the

made up of high
officials of the United

group,"

ranking

other

with

This

explained, will be the "con¬
agency
for
planning and
coordinating" and will "provide a
medium for adjusting such joint

nounced

ton

and

(American-Brit¬
the mili¬

would

matters

tactical

prob¬

referred;

the

strategic

broader

while

lems,

would

Wavell

General

decisions

make

further

President

The

Announcement

that

War

the

Great

and

States

insure

complete

ordination

of the

war

these-:

co-

effort of

British

full-

for

provide
the

supplies, "'and

war

Chairman, and Major Gen.
Burns, the executive,
/ and which has its counterpart

Nations

and
asso-

now

/ elated in prosecution of the war

the Axis powers. The
combined chiefs of staff as repagainst

United

the

resentatives. of

•/ States and British military and
naval effort, have two principal
-subdivisions

United
the
•

the

chief of naval

//,-

•

Stark,

United

the

United

discussed

Sir

John

Dill

000

Sir Charles Little.

Sir

Gen.

Government

used

its

power

the

that

Deciding

j during the

very

authority

preparation of
to the

surveillance

{ continuous

cently approved by the Presi¬
dent extending

and

the

Sugar

Act

[ of 1937 for another three years,

comprehensive specifications of

]

331/3%, or from 60
cents to 80 cents per 100 pounds
of sugar under legislation re¬

/ increased

commodity subjected

sugar

mestic sugar producers has been

;

j eral plan, he added:
|
"Congress hardly intended the
another

refined

period 1938-1940. The base rate
i of conditional payments to do-

Alabama

laws did conflict with the Fed-

intrusion" of

/prices/under the price ceilings
/ fixed by/the Office of Price
Administration,
are
approxi¬
mately $1 per hundredweight
higher than the average of the

likewise said:
i

prices,

further indicating the sugar
Agriculture Depart*

Wholesale

qf legislation as to conflict with
a State regulation, "State legis¬
lation becomes inoperative and
the Federal legislation exclqsfve"
in its application.
The "Times"

tainment

legitimate end,

On the basis of present sugar

Marshall
are

Harris. "

nication with Admiral Sir Dud¬

Pound,

General

Sir

Alan

i will

boards

combined

columns

these

I get
1

Brig. Gen. W. B. Smith, for¬

Secretary
of the War
Department general staff, has
been
designated
as
United
States
Secretary of the
com¬
of

staff

and

also

or to re¬
The estimated

be reached.

and

^lear that

average ' of-/ $3.75 on
: [ three crops marketed.

authority, will not be deemed to

the

last

It is an-

j ticipated that the income of in—

legisla-

j tion / within / its I .constitutional
( have intended to strike down

State/ statute, designed to

j dependent growers
will increase from
i

Florida

average

Congress

upon

Congress."

•../

■-

/ /> /

Press stated:

to Congress

President
that

in Jan-

Roosevelt

end of June,
debt would ap¬

The

national

debt

raised in 1940 from
to

limit

argued

Attorney-General's

[ Federal
'

nually

and

the

this

been

an¬

period,

583,000

reached

U. S. Credit To Bolivia

by this Court into a
that belongs to Congress

intrusion
field

having

1938.

| asserted: "If ever there was an
I

production

j tons

Justice / Frankfurter, 'in
a
separate opinion agreeing with
Chief Justice
Stone's dissent,

during

record

from the States..

I The

signing

between

the

agreement

United

States

and

it has seen fit not
Bolivia for a $25,000,000 Bolivian
to enter, this is it. ' And what
development program announced
f is worse the decision is purely
on
Jan.
28
in
Rio
de
Janeiro,
| destructive
legislation — the Brazil, where the Inter-American
Court takes power away from
Conference of Foreign Ministers
| the States but is of course un- was held. The Associated Press
! able to transfer it to the Fedreported as follows:
; eral Government."
•
•/
A Bolivian development cor.• 1
——-■M
^
poration is to be set up with
*

which

Wheat Loans

1941

i a

The Department of Agriculture
people reports that through Jan. 24, 1942,

showing "that, the

-merely

was

$10,000,000

credit

from

the

j Export-Import

Bank at Washington. Its first big project is
expected to be construction of a

;
<

Commodity
Credit
Corporation
made 510,478 loans on 353,150,760
bushels
of
1941- wheat
in the

225-mile
bama

highway from CochaSanta

Cruz,

linking

tition

similar" products

with

pro¬

which cross State lines.",

became

| approximately 463,000 tons

remove

$4,000,000,000

$49,000,000,000 in order to

did ' not

;

product involved is in compe¬

of short-term defense obligations,
and in Februarv. 1941 the present

law

this power

control every enter¬

activity

every

time record production of 1,{ 894,000 tons in 1940. The main} land eane area has averaged

in-

of the

{/spect the butter'and that the

everyoccupation; and

ernment to

prise,
;

Federal Gov-

right

the/State's

move

production

average

{ domestic beet sugar area has
] been ; approximately 1,758,000
( tons, raw value/ with an all-

of "Agri¬

Department

the

ap-

During the past four years,

jr..

culture had never sought to re-

••

"would enable the
•

$45,000,000,000

vide for issuance of

for the dairy

the

construction of the Act of 1937

esti¬

the

the public

Counsel
that

the

that

cane from

the last three crops .sold to
1 proximately $6 per. ton.;-;

The Chief Justice contended

•

per/ton of

j of $4.25

pro-

palpably infringes its policy." /

The Associated

In his bud-

for
the
joint
for
many
other limit of $65,000,000,000
boards and agencies established effective.
Secretary

in; enacting

Congress,

with

-compared

/from the salutary principle.that
4

i'-fy:

of intrastate
milk which competes with that
shipped interstate would , tend
seriously to break down price
I ; regulation ,,of the latter.; We

proximate $110,000,000,000.

merly

chiefs

$110,000,000,000

message

uary,

1943,

London.

sugarcane,

majority, opinionJ "ap-

to me to depart radically

pears

intrastate ac-

to; those

-////-/ -

think

it altogether.

soon

Brooke, and Air Chief Marshal
mated
Sir Charles Portal, the British
of staff in

that/the

;

Stone:; declared

V| tect the health:.and safety, of
j the public unless the ; State
tivities which in a substantial
Act \// ./ ^/conflicts with the
way interfere with or .obstruct
i Act of Congress or plainly and
the
exercise
of/the granted
extends

"The marketing

outstanding as of
Jan. 31 was slightly more than
$60,000,000,000 and in view of
rapidly rising war expenditures it
is expected that the present limit

Co.lville

in constant commu¬

expected to - average between
$5.20 .and
$5.60
per ; ton
of

/iln//a / dissenting / opinion,

j Chief/Justice

I the effective; Execution./of/the

total gross debt

Wemyss.

board,

the

/appropriate means; to - the {-'at¬

5, page 572.

move

/ In

'*! ■
policy/ the
i Justice Reed held that where ment said;

Arnold,

air forces.

Marshall

Admiral

bined

its

plant foF inspection.

;

the Secretary
regulate the han$110 Billion Debt Limit / dling of intrastate products
I-which by reason of its compeSecretary of the Treasury Morthe' handling \ of
genthau revealed on Feb. 9 that ; tition with
he
will - soon
ask ; Congress
/interstate milk so affects that
to
commerce ■> as i substantially
to
either
raise
the
national
debt
limit from its present $65,000,000,- / interfere with its regulation by

(until recently chief of staff of
the Imperial general staff).

•

shipped

Higher/sugar

•

authority

represented in Washington by:

chiefs

vated Butter Act, this law stopped
the Alabama officials from seiz*

being

/ *</:■/ /

materials,

war

increased
Government payments, and the
absence of any limitations on pro¬
duction of sugar beets and sugar¬
cane, should result in expanded
production, the Secretary said.-

mingham, Ala., argued that, being

from

ley

licensed under the Federal Reno¬

butter

other

and

the Cloverleaf Butter Co. of Bir¬

conferred

States

The British chiefs of staff are

They

| According to the Washington
advices to the New York "Times"

ing

our

utilization

Murphy
b

Byrnes dissented.

re¬

needs

Allies, and because of the
of large quantities of
sugarcane for industrial
alcohol
for the manufacture of explosives

and

Stone

expected

are

duced because of the sugar

Justice of

Justice

Frankfurter,"

source

ority

•

Nations

handling materials, munitions and
shipping, referred to above, were

States

United
H.

Gen.

chief of Army

Air

ma j

j the Department of Agriculture. f prices and the increased condithe price of milk
To
uphold the power of the
! tional > payments;- sugar
in interstate - com*
beet
1 State of Alabama to condemn
{ producers should average bemerce, added that the Govern¬
the material in the factory while
f tween $8.50 and $9.25
ment further "possesses every
per ton
it was under Federal observapower
to make that regula| of beets on their 1942 crop,
compared with an average of
{ tion effective." -The. commerce | tion and while Federal enforcei power, he went on, is not con*
>f merit deemed ML : wholesome
$6.75 from the 1938, 1939, and
/{would notVonlyfhamper the{ad/ [1940 crops. -; The returns of
fined to regulation of commerce
i ministration of
the Federal Act
Louisiana
fHamong States.
t. >: / - //// ?i-.,
sugarcane ' growers,
ii but would be inconsistent with
which are further : augmented
[
"It.extends "r he _added, "tq j its- requirements." /
; {/If'. */
as
a result of their sharing
in
{ those activities which affect r
the increased income from the
Regarding the dissenting views
interstate commerce
/ */;as:
sale of blackstrap molasses/are
the Associated J?res3 said^/ / / ./ /
j to make regulation ; of -them •i

three

The

operations.
C. Marshall,

chief,

Lieut.

regulate
distributed

be established in the same •>/ pow er

will

Fleet.

Field

The a

written

was

Chief

Justices

had every power

that Congress

raw mateof other govern-

allocate

to
of

ments

Admiral E. J. King, comman¬

;

Reed:

and

was rendered in a

decision.

opinion

arguing ;

Stone,

supply

sugar

than

of the

[

Officers

rial.

Feb.

Lieut.

Justice

Chief

shipping and of the

allocate

agency

George

staff,

immune

therefore

and

Army.
der

for

the

recommendation/to

their ;

building.

Harold

General

granary"

The

Admiral

chief

given

( granted power to regulate Inter*
^ /heads
of; their f^oVerrimentSC^ ./ state commerce. < No/ form .of
Mr. Hopkins' Committee will :
State activity, can constitution*
i aily
thwart- /the •' regulatory
/ also be established in the Pub;
lie
Health
Building.
In the j powers granted- -by the /comb
clause
.to / Congress.
! same
building will be, repre- j merce
/ Hence the.reach of that power
; sentatives of the central agency

staff

Staff

Chiefs

combined
i

membership of

combined/ chiefs

consists of:-

•

mittees will be submitted to the

United States

British

United States membership.

and

staff,

staff.

•

with

London,; both

/ These proposals of these com¬

chiefs of

British

the

chiefs

States

other

one

with

collaboration

United

this setup will be the

the

nations, including
production and distribution

American

addition, a most important

James H.

two

their

Assignments Board,
of which Mr. Harry Hopkins is

■

the

in 1941 reduced the "ever-normal

United

the

Building

Munitions

.group" has been established by
Britain

was

the- Wrightwood

Federal regulation.

organization described is

/ factor in

The "combined chiefs of staff

which

case

[ The ruling

operations were solely intrastate

con¬

Constitu¬
tion Avenue, directly opposite
the War Department.

lows :/-'\////^^^

matters

being established in the Public
Health

Depart¬

statement of " Feb.

ment's

The

■/:////;/|;/

the council,/-:

text

the

cerning their national interests.

min¬

plane, with representa¬
tives of Australia, Great Britain,
the Netherlands and New Zea¬
on

consideration

isterial

The

govern¬

participate with the
combined Chiefs of Staff in the

Pacific

council has been set up on a

land

these

ments will

made

was

Feb.

was

law

manufacture

of "renovated" butter.

5-to-4

parts of Illinois and Indiana, on
the
ground, as said, that its

The rep¬

present moment.

resentatives

Washington and London.
London

the price
regulated. /:'/// :

The. decision
in

milk

the State,

tary command is in the hands of
General Sir Archibald Wavell of
that

of which

with

the

ish-Dutch-Australian)

Britain.

of staff on broad

Chicago

cannot

health

State
with

1,000,000 tons, and because
anticipated curtailment in
Associated Press, in reporting this,
sugar supplies from some of the
said: • \ \
g;
t -.
offshore areas, Secretary of Agri¬
I
The State considered this but- culture/ Claude R. Wickard said
i ter an adulterated food, but was
on
Jan. 29.
Although production
\ told- to keep hands off because
in the offshore areas of this hem¬
:} the
Federal Government had
isphere is expected to increase,
: stepped
into this regulatory
says
the- Department's advices;
{field. - v
supplies for this market from this

Dairy Co. of Chicago upset a rub
minor
ing by the Seventh Circuit Court,
immediate matters relat¬
which
had
held
the
company
ing to current operations they
exempt from milk marketing reg¬
t are > prepared
to take
action
ulations prescribed by the Secre¬
without delay. The setup theretary of Agriculture, because all
; fore
amounts
to a combined
of its operations were confined to
command post for the conduct
Illinois.
The decision, said .Wash¬
of all joint operations of the
ington advices Feb. 2 to the New
two
governments in the war.
York "Times," will affect similar
It will be the control agency
milk
marketing agreements,, in
for planning and coordinating.
some 20 other areas; the "Times"
In addition, it will provide a
account went on to say:
medium
for
adjusting
such
The Wrightwood concern/had
joint
operations
as
involve
obtained an injunction freeing it
other
governments
of the
from application of regulations
United Nations, such as China,
arranged for the Chicago milk
the
Netherlands
East
Indies,
marketing area, which includes
Australia and New Zealand at

political character are
laid before the appropriate gov¬
ernmental bodies in Washington
and in London. He added that in

said

outside

from

connection

spective governments, in

the ABDA areas

com¬

Alabama

that

its

enforce

f and

staff while those of a govern¬

mental

the

strategical questions will be in
the form of joint recommendations to the heads of their re¬

dling questions of both a military
and political nature.
He told his
press conference that questions of
a
purely military nature are re¬
ferred to army and navy chiefs
of

the 1937 marketing agreement act

competed

chiefs

bined

han¬

were

While the action of

been

London

and

ish

an¬

operating for
month in both Washing¬

Press, the Court up¬
unanimously an order by tne
of Agriculture under

Secretary

will be Illinois.
The tribunal took this
of the Brit¬ stand, said the advices from which
Navy, Army, and Royal Air we quote, because the {product

Force.

Pacific

that

Feb.

had

councils
about

also

Associated
held

held

was

Specifically/ said/the there

London.

inet

involve" others of
Roosevelt

President

the

inter¬

upheld by the
Supreme Court on

States

/•An increase in the production
of sugar in the United States is
ruling by the United States
hoped for this year since the'un¬
Supreme
Court
on
Feb.
2
it
precedented distribution of sugar

intrastate

with

U. S. Sugar Production

was

assisted by officers,

Nations.

the United

who

years

some

United

regulate

competes

of fixing minimqm prices for milk
Imperial Defense and War Cab¬ produced and sold entirely within

trol

of the

of the Committee

Secretary

group,

it is

operations

for

served

traffic

state

Outlook /For /

Favorable
//

of the Federal Gov¬

ernment;; to:;
trade

Feb.

Dykes,

Brigadier

governments

Nations.

United

of staffs will

chiefs

combined

these two nations" and collabora¬

the

The British Secretary

designed to "insure complete co¬
of the war effort of

ordination

tion

Navy.

States

and

Britain

Great

and

States

The right

Thursday, February 12,

Ala. Health Law Held

Upholds U. Si Right

military

Feb. 6

ment

by the United States War and
Navy - Departments
to insure
coordination and unity in ma-

\ jor

Groop" Set Up

War

The

nounced

& FINANCIAL CHRONICLE

THE COMMERCIAL

672

earlier

Wrightwood

reference

Dairy

the

789,812

Co.

case

ap¬

peared in these columns Feb.; 17,
1940.

nace

1071.

$346,929,044. The wheat
under
loan
includes 116,360,948
bushels stored on farms and 236.-

amount of

...v'

bushels stored

warehouses.
009

Loans

KiicHaIc

.ing centers.
The announcement said plans
such a development were

for

in public
the

<jate last year had been
077 Qfil

Bolivia's agricultural and min-

'-W/'

same

made on
«

-../under
.

and

that

United

States economic mission

already

>;■was

way

in Bolivia.

■?

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4045

155

673

Text Of
'> We

enacted

making room here for the text of the measure

become

may

necessary

ahead;" at the same time he
said that "the enactment of price
control

mitted,

date

whichever

move

that

battle against inflation
won;" also in our Feb. 5,

detailed reference was
final Congressional
the
measure,
brief
mention of which appeared in our
Jan. 27 issue, page 440. The text
584,

page

made

of the
♦

Act follows:

new

y..

/>,

bility,

Session]

national defense
security by checking spec¬

ulative

excessive

and

rises, price dislocations, and in¬
flationary tendencies, and for
other purposes.

the Senate and
Representatives of the
America in Con¬

Be it enacted by
House

United States of

risen

Title I—General Provisions
And

the

the national defense and secur¬

ity
tive

and necessary to the effec¬
prosecution of the present

other

contributing

the

dates

na¬

and

dependent

such

impair¬

relevant

general increases or de¬
in costs of production,
distribution, and transportation,
and
general increases or de¬
creases in profits earned by sell¬
ers
of the commodity or com¬

assist in se¬
production of

and

facilities;

post emergency col¬
lapse of values; to stabilize agri¬
cultural prices in the rrianner
provided in section 3; and to
permit
voluntary
cooperation
between
the
Government and

modities, during and subsequent
to the year ended Oct. 1, 1941.

Every
sued

It shall be the policy of
those departments and agencies
of the Government dealing with

poses.

(including

ment

to work
:<■/

and

the

prices, fair and
and cost of

lation

any

schedules,

and

require-

the

specified in a

date

concurrent reso-

regula¬
in

used

the

order.

commodity

the

for

case

which

estab¬

lished^ the Administrator shall,
at the request of any substantial
of the industry subject
price, regula¬
tion, or order of the Adminis¬
trator, appoint an industry advisory committee, or commit-

; portion

to such maximum

thereunder,

President, or upon the

order.

involved

such

maximum price has been

shall termi¬
nate on June 30, 1943, or upon'
the date of a proclamation by
ments

statement

section, the Administrator shall,
so far as practicable, advise and
consult
with
representative
members of the industry which
will be affected by such regu¬

The provisions of this
Act, and all regulations, orders,
price

issuance

shall

order under the
foregoing provisions of this sub¬

(b)

considerations

the

regulation

equitable wages,

production.

subsection

section, the term "regulation or
order"
means
a
regulation or
order
of
general applicability
and effect.
Before issuing any

its various

toward a stabilization

this

foregoing provisions of this sub¬

War Department,
the Navy Department, the War
Production Board, the National
Labor Relations Board, the Na¬
tional Mediation Board, the Na¬
tional War Labor Board,
and
others
heretofore or hereafter
created), within the limits of
their authority and jurisdiction,
bureaus,

Labor

accompanied by

tion

Depart-

the

regulation or order is¬
under the foregoing pro¬

visions

producers, processors, and others
to accomplish the aforesaid pur¬

wages

adjustments for such
as
he may de¬

factors

creases

preven

and

tions,

in prices; to

commodities

under

order,

eral applicability, including the
following: Speculative fluctua¬

tions, and to the Federal, State,
and
local governments, which
would result from abnormal in¬
adequate

termine and deem to be of gen¬

engaged in business, to schools,
universities, and other institu¬

curing

repre¬

abnormal

included

regulation

shall make

standard of living;

prevent hardships to persons

creases

cause,

commodities

annuities, and

undue

from

pensions,

ment of their

generally

then to the prices
prevailing
during the
nearest
two-week period in which, in
the judgment of the Administra¬
tor, the prices for such com¬
modity are generally represent
ative), for the commodity or

earners,.in*

persons

not

because

seasonal market conditions

other

protect persons with rela¬
tively fixed and limited incomes,

life insurance,

any

are

sentative

vestors,

15, 1941 (or if,
commodity,
prevailing prices
such dates, or the pre¬
prices
between
such
of

case
are

vailing

that
appropriations are- not
dissipated by excessive prices;

and Oct.

the

between

ascer¬

give due consideration

prices prevailing between

there

tional emergency; to assure

wage

and

Oct.

defense

consumers,

maximum

shall

Administrator

to the

resulting from abnormal market
conditions or scarcities caused

such

tain

practices

disruptive

shall

tees, either national or regional

orders;

but

order

not

for

and

days,

placed by

such

any

regulation

effective

than

may

re¬

regulation

or order
the foregoing pro¬

issued under

visions of this subsection.

incon¬

of this
regulation or

may

the

the purposes of this
stabilize prices and to
prevent speculative, unwarrant¬
ed, and abnormal increases in
prices and rents; to eliminate
and prevent profiteering, hoard¬
ing, manipulation, speculation,

war, and
Act are, to

and

rise to

manner

price or maximum'prices as in
his judgment will be generally
fair and equitable and will ef¬
fectuate the purposes
of this
Act.
So far as practicable, in
establishing any maximum price,

interest

establish

order

It is hereby de¬

threaten

Act,

Applicability
Section 1. (a)

Whenever

sistent with the purposes

Authority

Purposes; Time Limit;

clared

prices the price or prices pre¬
vailing with respect to any com¬
modity or commodities within
five days prior to the date of
lations

subsection, issue temporary reg¬
ulations or orders establishing as
a
maximum price or maximum

temporary

action

the

extent

such

issuance of such temporary regu¬

in the
judgment of the Price Adminis¬
trator
(provided for in section
201) the price or prices of a
commodity or commodities have

assembled,

gress

tor

are

order

necessary

order

Act.

establisnes
maximum

rent may

(b) Whenever in the judgment

in order
to effectuate the purposes of this
Act, he shall issue a declaration
setting forth the necessity for,
necessary

proper

recommendations

and

of rents

for

within

fense-rental

such

any

particular

area.

after the

days

ref¬

de¬
accommoda¬

fense-area .housing
tions

with

stabilization

the

to,

erence

reduction

de¬

within

issuance

recommendations

60
any

for

rents

such accommodations with¬

any

in such defense-rental

the

not

area

judgment

have

the

Administrator been stabilized
reduced

lation,

by State or local regu¬

otherwise, in accord¬

with the recommendations,

ance

the Administrator may by regu¬
lation

maximum

his

rent

such

for

rents

establish

order

such

maximum

accommodations

judgment

will

generally fair and equitable and
will effectuate the purposes of
this

Act.

far

establishing

practicable,

maximum

any

hous¬
ing accommodations, the Admin¬

rent for any defense-area

shall ascertain and give

istrator

consideration

due

the

rents

prevailing for such accommoda¬
tions, or comparable accommo¬
dations, on or about April 1,
1941 (or if, prior or subsequent
to April 1, 1941, defense activi¬
resulted

have

shall

ties

threatened to result in increases
in rents for housing accommoda¬

such

tions

with

!the

then

area

purposes

about

inconsistent

of
a

this
date

Act,
[not

earlier than April 1,1940], which
in the

judgment of the Admin¬

istrator,

does not reflect such
increases), and he shall make
adjustments for such relevant
factors as he may determine and
deem to be of general applic¬
ability in respect of such accom¬
modations, including increases or
decreases in property taxes and
other

costs.

designating de¬
fense-rental areas, in prescribing
regulations and orders establish¬
ing maximum rents for such
accommodations, and in select¬

to administer such
regulations and orders, the Ad¬
ministrator shall, to such extent
as he determines to be practica¬
ing

persons

ble,

consider

any

which

may

tions

State
cerned

and

local

with

recommenda¬
be made by
officials

housing

conditions in any

con¬

rental

defense-rental

area.

under this section may

price

provide for

maximum

price

wnich

prices

prevailing for tne commodity

commodities,

or below tne rent
prevailing for- the ~ de¬

rents

accommoda¬

housing

tions^ at me time of the issuance
of such regulation or order.

(d) Whenever
of

ment

action

in
or

order

be estab¬

this

shall

construed

modify, suspend, amend, or
supersede any provision of the
Tariff Act of 1930, as amended,
and nothing in this section, or in
any existing law, shall be con¬
strued

to authorize any sale or
disposition of any agricul¬
tural commodity contrary to the
provisions of the Agricultural
Adjustment
Act
of
1938,
as
amended, or to- authorize the
Administrator to prohibit trad¬

other

ing in

agricultural commod¬
delivery if such
trading is subject to the provi¬
ity

any

future

for

of
the
Commodity Ex¬
change Act, as amended.^
(f) No
power
conferred
by

sions

this

shall

section

construed

authorize any action contrary

such

proper

section

judg¬

the

the Administrator

is necessary

the

provisions

and

purposes

section 3, and no agricultural

the purposes

commodity shall be sold within

of this Act, he may, by regula¬

the United States pursuant to the

tion or order, regulate or pro¬
hibit speculative or manipulative

provisions of this section by any
governmental agency at a price
below the price limitations im¬

order to effectuate

practices
(including
practices
relating to changes in form or
quality) or hoarding, in connec¬
with

section 3 (a) of this
respect to such com¬

posed

with

Act

any commodity, and
1 ative or manipulative
practices or renting or leasing
practices
(including
practices
relating to recovery of the pos¬
session) in connection with any

modity.

defense-area

evasion thereof.

tion

specu

housing accommo¬
dations, which in his judgment
equivalent to

are

result

creases,

price
the

likely

are

rent

in¬

may

case

be,

inconsistent with the purposes of

(e) Whenever

Adminis¬

the

trator determines that the maxi¬
necessary
production oi
commodity is not being ob¬

mum

any

tained

not

may

obtained

during the ensuing year, he may,
on
behalf of the United States,
without regard to the provisions
of
law
requiring
competitive

bidding, buy or sell at public or
private sale, or store or use, such
commodity
in such quantities
such

and

manner

upon
as

necessary

such terms and conditions

determines

obtain

maximum

the

necessary

production thereof or otherwise
to
supply the demand therefor,
or
make
subsidy payments to
domestic producers of such com¬

modity in such amounts and in
such
manner
and
upon
such
terms and conditions as he deter¬

be necessary

mines

to obtain

the maximum necessary produc¬

Provided, That in

thereof:

tion

the

case

of any commodity wnich

has heretofore or may

hereafter
criti¬

be defined as a strategic or

material

cal

pursuant

the

section

President

the

Reconstruction Finance Corpora¬

amended, such de¬
shall be made by
the Federal Loan Administrator,
tion

Act,

terminations
the

with

approval of the Presi¬

and, notwithstanding any
other provision of this Act or oi

dent,

existing law, such commod¬
ity may be bought or sold, or
stored or used, and such subsidy
any

payments to domestic producers
may be paid, only by

thereof

created or organ¬
pursuant to such section 5d;
except that in the case of the
sale of any commodity by any
such corporation, the sale price
therefor shall not exceed
any
corporations
ized

established pur¬
subsection (a) of this

maximum price
suant

which

section
such

sale

applicable

commodity at the time of
or
delivery, but such sale

price may be below such maxi¬
mum
price or below the pur¬
chase price of such commodity,
and the Administrator may make
recommendations with respect to

selling, or storage
of any such commodity.
case in which a commod¬

the buying or
or

use,

In any

the
granted to the Adminis¬

ity is domestically produced,
powers

this subsection shall be

trator by

exercised with respect to
tations
to

the

ment

impor¬

such commodity only

extent that,

domestic

regulation

price

oeiow

lent

regulation
section

maximum

proper

the purposes

this Act.

of the Administrator such action
is

Any

maximum

tnis

unaer

Admmistra-

effectuate

this

Adminis¬
advisable.

or proper

effectuate

Renting Practices

(a)

the

in order to
purposes of this
Act, he may, without regard to
the foregoing provisions of this

necessary

Prices, Rents, and Market and

Sec.

deems

Whenever in the judgment of the

Columbia.

price

tne j augment oi me

fense-area

Administrator

States, its Territories and pos¬
sessions, and the District of

the

with

and

and reasonable exceptions, as

trator

offense.

order,

ommendations

still

the

respect

differentiations, ana may
proviue
lor
sucn
adjustments

classifications,
differentiations,
and
adjustments therein.
The
committee may make such rec¬

AN ACT

and

treated

to time,

contain such classifications

and

respect to the form thereof, and

regulations, orders,
schedules, and require¬
shall

with

regulation

remaining in force for the pur¬
pose
of sustaining any proper
suit, action, or prosecution with
respect to any such right, lia¬

[H. R. 5990]

To .further

committee

ments

mem¬

request of the committee,
and
consult
with
the

advise

earlier;

price

its

The Adminis¬

chairman.

the

at the

Act and such

[Public Law 421—77th Congress]
I Chapter 26—2d

tion date, the provisiofts of this

select

trator shall from. time

rights or liabilities
mcurred, prior to such termina¬

the

action

in¬

bers, and shall meet at the call

security,

the

shall

committee

chairman from among

except that as to offenses com¬

legislation does not mean

the

has been

The

and

dustry, or of the industry in
such region, as the case may be.

Congressional action on this bill, two of which were given in
our Feb. 5 issue; on page 566 of that issue we published the state¬
ment
issued
by
the President*
—,
■
~j.,—
lution by the two Houses of the
with the signing of the bill in
which he expressed his doubts
Congress, declaring that the fur¬
ther continuance of the author¬
"as to the' wisdom and adequacy
of certain sections of the Act,"
ity granted by this Act. is not
and stated that "amendments to it
necessary in the interest of the
defense

committee

representative

truly

the

national

constitute

order to

Price Control Act of 1942, which
became a law on Jan. 30, the date of its signing by President Roose¬
velt.
Various references have appeared in these pages regarding

under the title of the "Emergency

may

both, consisting of such num¬
of
representatives of the
industry as may be necessary in

Emergency Price Control Act Of M 942

are

lished in such form and manner,

ber

the

in the judg¬
the

Administrator,

production of the com¬

modity is not sufficient to satisfy
the demand therefor. Nothing in

(g) Regulations, orders,
and
requirements under this Act may
such

contain

provisions

Administrator
to

deems

the

necessary

prevent the circumvention or

(h) The

granted

powers

this section shall not be used

to
operate
to
compel
changes in the business practices,
cost practices
or
methods, or
means
or
aids
to distribution,
established in any industry, ex¬
cept to prevent circumvention
or evasion of any regulation, or¬
der, price schedule, or require¬

made

ment under this Act.

price shall
fishery
commodity below the average
price of such commodity in the
maximum

(i) No

established

for

any

1941.

year

Agricultural
Sec. 3.

shall

(a)

Commodities;

No maximum price

established

main¬

tained for any

agricultural com¬
modity below the highest of any
of the following prices, as deter¬
mined"''and
published
by
the
Secretary of Agriculture: (1) 110
centum of the parity price
commodity, adjusted by

per

for such

the Secretary

of Agriculture for

grade, location, and seasonal dif¬

ferentials,
able

such

for

in case

or,

compar¬

price has been determined

commodity under sub¬

section

(b), 110 per centum of
such comparable price, adjusted
in the same manner, in lieu of
110 per
centum of the parity
price so adjusted; (2) the market
price prevailing for such com¬
modity, on Oct. 1, 1941; (3) the
market price prevailing for such
commodity on Dec. 15, 1941; or
(4) the average price for such
commodity during the period
July 1, 1919, to June 30, 1929.
(b) For the purposes of this
Act, parity prices shall be deter¬
mined and published by the Sec¬
retary of Agriculture as author¬
ized by law. In the case of any
agricultural
commodity
other
than the basic crops corn, wheat,
rice,

cotton,

tobacco,

and

pea¬

nuts, the Secretary shall deter¬
mine and publish a comparable

price whenever he finds, after
investigation and public hearing,
that the
production and con¬
sumption of such commodity has
so changed in extent or charac¬
ter since the base period as to
result in a price out of line with
parity prices for basic commod¬
ities.

maximum price

be established
any

commodity

manufactured

stantial
tural

which
of

processed

in whole

part from any

commodity below
will

such

shall

maintained for

reflect to

sub¬

agricul¬
a price

producers

agricultural commodity

price for such agricultural
commodity equal to the highest

price therefor specified in sub¬
section (a).

(d) Nothing contained in this
to modi¬

Act shall be construed

fy, repeal,

supersede,

affect

;

>674

THE COMMERCIAL & FINANCIAL CHRONICLE

the

provisions

the

Marketing Agreement Act
-1937, as amended, or to in¬

validate

marketing

any

Enforcement

heretofore

thereto,

issued

Sec.

the

visions of such Act.

under j the
this Act

(e) Notwithstanding any other
provisions of this or any other
law, no action shall be taken

;

unaer

the

any other person with

000 per annum.

(b)

cation Act of

the

and local

ize

purposes
"

time to time be needed.

•

heretotore

fciitered

nereatter

tor any person to

into,

deliver

sen

contract,
other obli¬

any
or

commodity,

any

in the course oi trade or busi¬

buy or receive any com¬
or to demand or receive
any rent tor any deiehse-area
housing accommodations, or
to

ness

modity,

otherwise

omit

in violation of

any act,

ulation

order

District of

section

2, or of any price schedule effec¬
tive
in
accordance
with
the

tative may

his

section 2U6, or of
any
regulation, oraer, or re¬
quirement unaer section 202 (b)
or
section 205 (f), or to offer,

provisions

any person to remove or

renew

agreement

lor

tne

the

lease

use

because such
occupant has taken, or

accommodations,
tenant

proposes
ized

any

to ta*te, action author-^

regulation, order,

or require-?

ment tnereunaer.

shall

officer

any

ties;

unlawful
any

aaviser

consultant to the Administra-

tor

his

official

capacity,

ferred

otherwise than in the
of official duty, any in¬

disclose,
course

formation

Act,

obtained

■

son

to
lor

other

;

5. In

carrying

provisions of this Act,:
producers,

Administrator

the Adt

rerit

con¬

the

seat of

"■

administration

and

associa¬
the fixing of
maximum prices, the issuance: of
other regulations or. orders, or
the other purposes of this Act,
sucn

tions

but

persons, groups, or

relating

such

V1
'

arrangement

shall

effective in accordance with the

provisions of section 2 or section
206, The Attorney General shall'
be promptly furnished with a
copy of each such .arrangement
or agreement.
_

of the United

enforcement

not

formation
Act

such

deems confidential
ence

$250.

to which

fidential

Administrator f may,

made

deem
necessary or
proper ; in
order to carry out the purposes
and provisions of this Act.
'

tne

and

filing
written

emergency Court of Appeals,
may,
from time to time,

judges for

designate additional

such court and revoke previous

The chief judge
time to time, divide

designations.
•

from

may,

who

the court into divisions of tnree

aggrieved

members, and any such
may render judgment

or more

(division
as

The court snail have the powers
of

the

tnat

facts of which the Administrator
has

this

the

regulation, order, oi
price schedule protested be en¬
joined or set aside in whole or
in part.
A copy of such com¬
plaint shall forthwith be served
on the Administrator, who shall
certify and file with such court
a transcript of such portions
of
the
proceedings in connection
with the protest as are material
under the complaint. Such tran¬
script shall include a statement
setting forth, so far as practica¬
ble, the economic data and other
taken

official

notice.

Upon
the filing of such complaint the
court shall have exclusive jurisdiction to set aside such regula¬
tion, order, or price schedule, in
whole or in part, to dismiss the
complaint, or to remand the pro¬
ceeding: Provided, That the reg¬
ulation, order, or price schedule
may be modified or rescinded by
the Administrator at any time
notwithstanding the pendency of

the

judgment; of

district

court

the

with

respect

jurisdiction conferred on
by tnis Act; except that the
shall

court

have

not

issue any temporary
order
■

court.

power»to

restraining

interlocutory

aecree

restraining in whole
part, the effectiveness of
any regulation or^order issued
under
section 2
or
any
price
staying

schedule effective in accordance
with

206.

the

provisions

section

The court shall exercise its

and prescribe rules governingG its procedure in such
manner
as
to expedite the de¬
termination of cases of which it
powers

has jurisdiction
The court may
a

table

under this Act.
fix and establish
fees

costs and

to be

approved by the Supreme Court
of the
United States, but the
costs and fees so fixed shall not
exceed with respect to any item
the costs and fees charged

Court

Supreme
States.

The

the

in the

United

court shall have

seal, hold sessions at such places
as it may specify, and appoint a
clerk and such other employees
it deems necessary or proper.

such complaint. No

such regulation,

;by

the' person

time to time, issue such
regulations and orders as he may

of ap¬

The Chief Justice of tne
United States shall designate one
of such judges as chief judge| of

the

other

circuit courts

and

peals.

pursuant to subsection (c), speci¬
fying his objections and praying

with refer¬

courts

complaint with the Emer¬
gency Court of Appeals, created

•

furnishing such in-;
formation, unless he determines"
that the withholding thereof is
contrary to the interest of the
national defense and security."

Emergency Court
which snail consist

within 30 days after such denial,

request for con¬

treatment

including

as a result
under section

the

Appeals,

uaee or
more judges
to be
designated by the Chief Justice
of hue uniteu States from judges
of tne
United
states
district

proceedings
under
may be limited by

Any

section

by; him

taken

stales

united

tne

file

Administrator
or

by tne denial oi
partial denial of his protest may,

provisions

under

facts,

known
of

Sec. 204. (a) Any person

shall
disclose any in¬

obtained

that

other

affidavits,

Administrator

publish

Supreme

has

administration

Review

person

lege. ;
(h) The

provisions of.

any

evidence, and the filing of briefs.

shall

States.

Administrator

privilege against
self-incrimination, but the im¬
munity provisions of the Com¬
pulsory Testimony Act of Feb.
11, 1893 (U. S. C., 1934 edition,
title 49, sec. 46), shall apply with
respect to any individual who
specifically claims such privi¬

government

from

(c)

subpenaed un¬
paid the
mileage as are
in the district

and

based,

the

and

this

the

because of his

by the Administrator where the.
aggregate amount involved does
(d) The

fees

the

final, or until other final
disposition of the case by the

such

202.

which

upon

the

action

shall be ex¬
cused from complying with any
requirements under this section

apply to the pur-,
supplies and services

not exceed

agreement
shall
modify
any
regulation, order, or price sched¬
ule previously issued which is

to the

(a).

witnesses

courts

utes shall not

chase

subsection

Witnesses

paid

section 3709 of the Revised Stat¬

tnereof, to cooperate with
any agency or person, and to
enter into
voluntary arrange¬
ments or agreements with any

The

Act.

(f)

(g) No

tions

this

in addition

same

data

district in which
is found or resides

this

such petition be¬

Supreme Court.

facts found

•:

subpena

order

comes

grounds

(b)

der this section shall be

elsewhere; for lawbooks and
of
reference; and
for
paper, printing, and binding)-as
he may deem necessary for the
;

person

ex¬

with representatives and associa¬

obey

such

this Act the Administrator may
take official notice of economic

any

of section 4

books

salers, and otner groups having
to
do
with
commodities, and

for

visions

and

processors:,

manufacturers, retailers, whole¬

regulation, order, or price sched¬
ule shall be postponed until the
expiration ot 30 days from the
entry thereof, except that if a
petition for a writ of certiorari
is filed with the Supreme Court
under subsection (d) within such
30 days, the effectiveness of such
judgment shall
be postponed

taken official notice.

of contumacy by,

case

capricious. The ef¬
a judgment of the

Court denying

which

also apply to any person referred
to in subsection (b), and shall

have
authority to make such
expenditures (including expen¬
ditures for personal services and

not
is

court enjoining or setting aside,
in whole or in part, any such

until

decision

Administrator

law,

fectiveness of

economic data and other facts ol

stip¬

regulation,

with

accordance

arbitrary

either

any

the

schedule

price

the

requiring such person
testimony or
to
appear
and produce docu~;
ments, or both; and any failure
to obey such order of the court
may be punished by such court
as a contempt thereof.
The pro¬

transferred.

The

the

conduction

evidence

that

court

order,

protest in whole or in part, he
shall inform the protestant of

correct
a

establishes to the satisfaction of
the

Administrator, denies

order

filing

further

to appear and give

Price

agency

and

true

shall

I* (b) No such regulation, order,

therewith. In the event that the

business, upon ap¬
plication by the Administrator,
shall have jurisdiction to issue

any

agricultural commodity,

(c)

the

out

ministrator is authorized to

with

per¬

place

transacts

to the Admin¬

department

shall

f- r'y.

Agreements

such

cept powers and functions relat¬
ing to priorities or rationing,

Voluntary
Sec.

fer

any

require any per¬
to sell any commodity or
offer
any
accommodations

rent.

court

the Government with respect to

(d) Nothing in this Act shall
be construed

Office

any

information contained

refusal

istrator, and no powers or func¬
tions conferred by law upon any

or to use any sucn informa¬

tion, for personal benefit.

the

Administration

this

under

notwithstanding

but,

the

deny such protest in
whole or in part, notice such
protest for' hearing, or pro¬
vide an opportunity to present

served upon, any person referred
to in subsection (c), the district

provision of this or any othei
law, no powers or functions con¬
ferred by law upon the Secretary
of Agriculture shall be trans¬

of tne

employee

Government, or for

for

Within *

after

Administrator

the

the Administrator

with

the

(e)

Price

relating

time

any

or
price schedule shall be en¬
joined or set asiae, in whole or
in
part, unless the complainant

this subsec¬
tion, but in no event more than
30 days after such filing or 90
days after the issuance^ of the
regulation or order (or in the
case " of " a^ pride
schedule, yo
days after the effective .date
thereof specified in section 206)
in respect of which the protest
is filed, whichever occurs later,
grant

both, at any desig¬

in such documents.

priorities or rationing conierrea
by law upon any otner depart¬
ment or agency of the Govern¬
ment with respect' to any par¬
ticular commodity or commodi¬

required by this Act or

functions

and

ers

any

produce

has entered into

ulation
as

copy),

Administration any of the pow¬

sucn

documents

oath

Administra¬

Office of

the

and

a copy of such documents
(certified by such .person under

having othei
relating td^sucn commodity or commodities, and tc
transfer

require

to appear and tes¬

appear

with

The

of the Government

■

subpena

has furnished

functions

housing accommodations tne
tenant or occupant thereof or to

prior to the return date specified
in the subpena issued with re¬
spect thereto, such person either

partieulai
commodity or commodities to
any other department or agency

attempt

■

shall not be required under this
section in any
case
in which,

tion with respect to a

to remove from any aeiense-aiea

refuse

of Price

prescribed

Administrator.

the

Administrator

(d) The production Of

the

place.

any

may

trie

to the court.
:

in accordance with such regula¬

other than his place of business

all oi

any or

rated

place.

son's

of the powers and func¬
this Act upon

the Office

for

unlawful

nated

tions conferred by

shall

powers

fer any

attempt, or agree to do
of the foregoing.
!

(b) It

exercise

tify or to
documents,

President is authorized to trans¬

solicit,
any

the

(a),

other person

Columbia, but he oi
authorized represen¬

duly

any

order, or price schedule
be received and incorpo¬
in the transcript of the
proceedings at such times and

may

court

and

tnereand file
transcript

modification
regulation order, or
price schedule as a result there¬
of; except; that on request by
the Administrator, any such evi¬
dence shall be presented directly*

support of any such regula¬

tions

the

maue

and

he deems

and

certify

shall

thereof

tion,
-

any

o may

of merit and

shall

For the purpose of obtain¬
information under sub¬

(c)

(b) The principal office of the
Administrator

any reg¬

under

basis

docu¬

The Administrator may
oaths and affirma¬

section

efficiency.

the

other

and

with

same,

proper,

upon
•

of any protest under

ing

in, any. court.

made

affirma¬

In the ap*
pointment, selection, classifica¬
tion, and promotion of officers
and employees of the Office ol
Price Administration* no politi¬
cal test or qualification shall be
permitted or given consideration,
but all such appointments and
promotions shall be given ana

be unlaw-

it snail

fui, iegaruiess of
agi dement, lease,
gation

(a)

such in¬

evidence

necessary

the

receive

sucn other

any

shall

The Administrator

trator.

promptly

days any persons subject to
provision of such regulation,
order, or price schedule may file
such a protest based solely on
grounds arising after the expir¬
ation of such 60 days. Statements

accommo¬

any

oath

unaer

agent for the

reasonable

the Administrator in any

resent
case

Sec. 4.

under this
for and rep¬

section may appear

whenever neces¬
sary,
by subpena require any
such person to appear and testify
or to appear and produce docu¬
ments, or both, at any designated
place.
\ |

Attorneys appointed

Prohibitions

.V:

tions and may,

such

from

administer

agencies, and
voluntary and un¬
compensated services, as may
or

price

•

housing

records

dations.

util¬

such regional,

other

local,

and
;

may

and:

ments, and to,make reports, and
he may require any such per¬
son to permit the
inspection and
copying of records and other
documents, the inspection of in¬
ventories, and the inspection ofdefense-area housing accommo¬

agencies and

establish

and

utilize

(f ) No provision of this Act or
of any existing law shall be con-^
strued to. authorize any action

the provisions
of this section.

services

and

Act

and

trator
and
not
specified in section
admitted,
or
which could not reasonably have
206, any person subject to any
been offered to the Administra¬
provision of such regulation, or¬
tor or included by the Admmis.der, or price schedule may, in
accordance with regulations to
trator in such proceedings, and
be prescribed by the Administra¬ 'the court determines that such
tor, file a protest specifically : evidence should be admitted, the
court shall order the eviaence
setting forth objections to any
such provision and affidavits or
to be presented to the Adminisr

otherwise, to make and

keep

amended.
utilize
Federal, State,

1923,

Administrator

The

tion

the Classifi¬

in accordance with

Order,
price
schedule or other requirement
with respect to an agricultural
commodity which has been pre¬
viously approved by the Secre¬
tary of Agriculture.
'
■
J

regulation,

contrary

formation

and shall fix their compensation

to enforce compliance with

broker

dations, to furnish

The Administra¬

may,

tions and duties under this Act,

(a) and

rental of any

subject to the civilservice laws, appoint such em¬
ployees as he deems necessary
in-order to carry out his func¬
tor

Agriculture; except that the Ad¬
ministrator may take such action
as may be necessary under sec¬

any

acts

receive

compensation at the rate of $12,-

respect to any agricultural com¬
modity without the prior ap¬
proval
of
the
Secretary
of

tion 202 and section 205

shall

and

Senate,

orders,

date thereof

order, to require any person who;
is engaged in the business of ; other written evidence in sup¬
port oi such objections. At any
dealing with any commodity, or
who rents or offers for rent or «time after the expiration of such

pointed by the President, by and
with the advice and consent .of

this

(b) The Administrator is fur¬
ther authorized, by regulation or

shall be ap¬

Administrator

The

this Act by the Adminis-

trator

the "Administrator").

schedules thereunder.

Administrator

administration

regulations,

Ad¬

which
shall
be
direction of a Price
(referred to in

ministration,

pro¬

of Price

Office

the

enforcement

(a) There is hereby

201.

created

hereafter

under

Administration

agree¬

ment, license, or order, or any
provision thereof or amendment
made

sist him in prescribing any regu¬
lation or order under this Act,

Title II—Administration And

Agricul-,

tural

Thursday, February 12, 1942

(d) Within 39 days after entry
of a judgment or order, inter¬
locutory or final, by the Emer¬
gency Court of Appeals, a peti¬

objection to
order, or price
no
evidence in

schedule, and
support of any objection there¬
to, shall be considered by the
court, unless "such objection shall
have been set forth by the com¬

tion for

be 'filed

writ of certiorari may
the Supreme Court

■

Investigations; Records; Reports
Sec. 202. (a) The Administra¬
tor is authorized to make such

studies

and

investigations

to obtain such information

and
as

deems necessary or proper to as¬

•

procedure ;•;;•••. I-'

(a) Within a period
of -30 days after the issuance* of"
any regulation or order under
-section 2, or- in .the case, of- a*
price schedule, within a period,
of - 60 days after the effective
Sec. 203.

plainant in the protest or such
evidence

shall be

contained

transcript. If application is
made to the court by either
the

party for leave to introduce ad¬
evidence
which
was

ditional

either offered

to the Adminis¬

of the United States, and there¬

the judgment or order shall
subject to review by the Su¬
preme Court in the same manner
as a judgment of a circuit court
upon
be

appeals as provided in section

240

of " the

Judicial

Code,

•

Volume 155

amended

THE COMMERCIAL & FINANCIAL CHRONICLE

(U. S. C-, .1934 edition,

title

Number 4045

; pursuant to tms subsection.

Emergency
of

view

'of

faith

ment,

regulation,

any

diction to determine tne validity

aliy regulation or oruer issued
uhaer section 2, of any price

Price

scneuule enective in

Office

vwitn

tne

section

•

2l)t», ana ol any provision of any:

regulation, order, or price
Except as provided in

sucn

scnedule.

this

section,

Federal,

court,

Civil¬

and

■'

for

State; dr Territorial, shall have
•'jurisdiction or power to consider
the validity of any such regula¬

of relief

defense

(2)

this Act or any regulation,

Administrator

sell

aside, in whole or in part, any
provision of tins Act authorizing

•

issuance

the

•

orders,

provision

Administrator

forcement of any such

Sec. 205.

juugment

which

such date, have the

/
-'

engage

practices wmcn

he may make

appropriate

tms

lor

any

the

com-

shall

violates any

4' of

this

Act,

and

person

any

under

ment

•

Act

this

tion

appropriate

Territorial
•

courts,
5

•

in any district in
which any part of any act or
transaction constituting the vio¬
lation occurred. Except as probrought

1 be
'

vided in section 205 (f)

;

other

and

proceedings may be

which V
transac¬

subject

such

any

whicn

nal or other

proceedings brought

before it under

this section. No

shall be assessed against
Administrator or the United
States Government in any procosts

the
,

ceeding under
v

(d)
liable

No
for

this Act.

shall be held_
damages or penalties

person

Sec. 302.

doing

-one

State,

shall

not

necessary

for

commodity

regulation, order,
with respect

which

license is required.

license

contain

shall

tributing

scrap)

(except

"buyer", shall be construed
accordingly.
(b)
the

newspapers,

time:

may

farmer

duced

and

commodity.

connection

with

the

or. any
ance

judge thereof in accord¬

with

the

applicable

materials'

furnished,

cation

any

upon written stipulation
parties to the proceeding
for suspension, approved by the
trial court, any such order of

employee i,n
-'connection with 'the processing,
distribution, storage, installation,
as

or negotiation of pur¬
chases or-sales of a commodity;

repair,

conection with the opera¬

may

restored,

area"

shall be
r

priate appellate court if, under
the applicable rules of law, the
evidence in the record supports
a

finding that there has been a

violation

That no

such

any

license,

'.price schedule,
after receipt

provision

regulation,
or

order,

requirement

of such warning no-

license 7 tice. No proceedings for

suspen¬

periodical,

means

the District of Co¬

lumbia and any area

order

newspaper,

picture or other theater enter¬
prise, or outdoor advertising fa¬
cilities, or (5) rates charged for
any professional services.
(d) The term "defense-rental

suspension
affirmed by the appro-

such

magazine, or operating a radio¬
broadcasting station, a motion-

such court shall find reasonable.

Any

the

•

includes
of

303.

Act

circumstances
,

threaten to result in
the

rents

for

hous-

ing accommodations inconsistent
with the purposes of this Act.

(e) The
term
"defense-area
housing accommodations" means
housing accommodations within
any

defense-rental

area.

provision of
application of
any

shall

person

held

in-

valid, the validity of the remain¬
of the Act and the applica¬
bility of such provision to other
persons
or
circumstances shall
not be affected thereby.
;
der

Appropriations

Authorized

Sec. 304. There

are

to be

may

necessary

the

out

carry

Application
Sec.

305.

force

strued

and

this

Existing

Law

provision of law

the

ment

sums

proper

provisions

of this Act.

purposes

authorized

appropriated such

date

shall

Act

authorize

inconsistent with

enact¬

con¬

action
provisions

any

the

and purposes of this Act.

;V"77'7/-/v:
Sec.
cited

Short Title'
306.

the

Control

Act

This

V::.7/7p7;

Act

may

"Emergency
of

Price

1942."

Approved, Jan. 30, 1942.

L. N. de Rothschild Dead
Lionel
Unionist

Nathan

Rothschild,

Parliament

member

died in London

any

such provision to

where defense activities have re¬
or

United

Appeals for the

the

by the Administrator as an area

increase

courts

the

Columbia.

for

sulted
•

designated

Territory:

any

"circuit

term

Court

Sec.
this

person

upon

conditions

and

terms

construed

(3) rates charged by any
engaged in the business
of selling or underwriting insur¬
ance,
or
(4) rates charged by
any person engaged in the busi¬
ness of operataing or publishing
ity,

the license which has been sus¬

such

regulation of (1)
compensation paid by an em¬
ployer to any of his employees,
or (2) rates charged by any com¬
mon carrier or other public util¬
authorize

•

the

States

for the servicing of a

suspension may be modified, and
pended

and

tion Of any

shall

for

Separability

Court

other place subject to the jur¬
isdiction of the United States;

District

pictures, periodi¬
other than
as
waste or scrap); -and it also
includes-Services rendered other¬

-of the

press

"district court"

district court of the
States, and the United

any

motion

than

rents,

cals and newspapers,

wise

prices,

The term

appeals"

association
feature service, books, maga¬
by

zines,

prac¬

tice; and

products, and materials

(except
for publi¬

(k)

States
r

- term
"commodity"
commodities,'
articles,

case

The term "documents" in¬

United

means

terms

means

•

means

demanded

judgment

•

be required of any
condition of selling

him,

consideration

sale of

stayed by the appropriate court

periodicals,

agricultural commodity pro¬

"price"

term

received

Upon good cause shown, any
such order of suspension may be

any

be.

waste -or

Provided further,

license

The

may

the

records, books, accounts,
correspondence, memoranda, andother documents, and drafts and
copies of any of the foregoing.

and

State, Territorial,
district court, as the case may

from

cases

order

Maximum

cludes

"sell", "selling", "seller", "buy",

Act

the

housing
may

Cj)

any

this

-in other

the

margins, commissions, fees, and
other charges, and allowances.

terms

ity:

any

books, or other printed or writ¬
ten material, or motion pictures,
or as a condition of selling radio

y whole or in part the Administra-

provision which could, not -be
prescribed by regulation, order,
or
requirement; under section 2
or
section 202: Provided, That
no such licenlse may be required
as a condition of selling or dis¬

The

foregoing.

7- tor's petition for suspension, an

schedule

inclddes

service establishment
commod¬
Provided, That nothing in

for

each

price
such

each

for the
separate

the

"sale"

offers

and

contracts

license may be brought

term
for

rent

defense-area

formulated,

be,

dispositions, j exchanges,
and other transfers, and

leases,

of this subsection, any
proceedings for the suspen¬

district court if the licensee

such

for

the

As used in this Act—

The term

(a)

sales,

any

buiness in more than
or if his gross sales
rexceed '$100,000 - per
annum.
Within 30 days after the entry
of the judgment or order of any
;

regulation, order, or

sucn

license

and
may
also be
brought in the district in which
the defendant resides or transacts
business,
and process in
such cases may be served in any
district wherein the defendant
resides or transacts business or
wherever the defendant may be
found. Any such court shall ad¬
vance
on the docket and expedite the disposition of any crimi-

maxi¬

means

accommodations.

Definitions

;

/'appeal may be taken from such
judgment or order in like manner as an appeal may be
taken
price

schedule, a license as a condition
of
selling
any
.commodity or
commodities
with
respect
to

Administrator to issue

occurred,

any

by regulation or order issue to
or require of any person or persons
subject to any regulation
or order issued under section 2,

part of any act or
tion
constituting the violation

prices

the

price
and

lawful

means

rent"

maximum
use

"maximum

prices and maximum rents

the

sion of

applied

"maximum

be.

may

commodities,

Secretary of

■

lawful

mum

case

such

(2), such -price schedule is applicable. It

any

brought in any district in

the

agency

any

term

of commodities

the Clerk of the
House of Representatives, as the

purposes

com¬

assure

the Senate,

of all other proceedings
under section 205 of this Act.
Such criminal proceedings may

transmitted

includes
or

The

price,"

the

of Representatives is not
session, such reports shall be

the

any

and

states

(i)

un¬

the

successor

agency.

House

order issued or
which may be issued under sec¬
tion 2, or of any price schedule
effective in accordance with the 7 court either suspending a license,
or
dismissing
or
denying in
provisions of section 206, he may
regulation

of this Act, and, concur-

rently with State and

proper

enforcement

effective

district courts shall
jurisdiction of criminal
% proceedings for violations of sec1

Administrator such

of the

pliance with and provide for the

'have

•

-:"t

Administrator

der this Act. If the Senate

provisions of section
applicable; but no such
suspension shall be for a period
of more than 12 months. For the

order to effectuate the purposes

•

with

_206,

date of enact¬

action is necessary or

proceedings to be brought.

the

The

witn

thereof, or any other govern¬
ment, or any of its political sub¬
divisions, or any agency of any
of the foregoing: Provided, That
no punishment provided
by this
Act shall apply to the
United
States, or to any such govern¬
ment, political subdivision,
or

upon

report of operations

gress a

effective in accordance

schedule

Whenever in the judg¬

(f) (1)
ment

torney General, wno may, m ms

cause

sell

United

but not less
frequently than once every 90
days shall transmit to the Con¬

it authorizes

that

301.

demanciea

legal

foregoing,

from time to time,

with

commod¬
with respect
to which a regulation or order
issued under section 2, or a price

of;; six

expiration

ment of this Act.

is liable to punishthis subsection, he

Sec,

means

term
"person"
in¬
individual, corpora-;

persons,

Miscellaneous

"rent"

in connection

representative

reprinted

Quarterly Report

.which the violation occurred, or
extent

111

Title

occu-:

tion, partnership, association, or
any
other organized group of

which such
Administrator takes office. 7 V

•

with ail

use

term

(h) The

provided in

prop¬

dwell¬

occupancy or tne transfer
lease of any housing ac¬

cludes

to believe

connection

after the date

ity or commodities

•

.discretion,

commodities

section shall not take effect until

certify the facts to the At-

may

sell the commodity or

person to

such person to

the

in the
Feuerai Register within 10 days

the extent that it authorizes such

the

shall

ules

person

Jurisdiction,^$ and sbalf be
after
delivery is completed or rent is
paid. Tne provisions of this sub¬

months from

section

no-

commodations.

section 203 and section 204 of
;this Act. All such price sched¬

any

after

the

consideration

use

limitations

tne

test and review

may

the

received

this

If the Ad¬

reason

brought in any court of compe¬

in all other cases, or to
both such fine and imprisonment.
Whenever the Aaministrator has reason to believe that

maximum

subsection

tms

and

(in¬

of such property.

(g) The

pro¬

person.

tent

year
,

person,

instituted within one year

and for not more than one

(c)

regulation, order, or price

under

any

upon

•

the
Administrator
may
bring
such action under this
subsection
on
behalf
of
the
United States. Any suit or action

conviction thereof, be subject to a fine of not more than
$5,000, or to imprisonment for
not more than two years in the
case of a violation of section 4

•

selling

be. If any
commodity vio¬

tion,

document or report requnea to be kept or filed under
section 2 or section 202, shall,

selling of a commod¬

price or maximum prices, and
the buyer is not entitled to bring
suit or.action under tnis subsec-

material respect

;

schedule prescribing a

statement or en-

try false in any

the

deemed

the case may

lates

person

any

who makes any

shall

person

provision of section

•

payment

of this section
receipt of rent

ity,

without bond.

granted

has again vio¬
of the provisions of
such license, regulation, order,
price schedule, or requirement
after
receipt of such warning
notice, the: Administrator may
petition any State or Territorial
court of competent jurisdiction,
or a district court subject to the
limitations hereinafter provided,
for
an
order
suspending
the
license of such person for any
period of not more than
12
months. If any such court finds
that
such person has violated
any
of the provisions of such
license, "regulation, order, price
schedule, or requirement after
the receipt of the warning no¬
tice, such court shall issue an
•order suspending the license to
lated

attorney's fees and
determined by the court.

buying

(b) Any person who willfully

that such

the

modations

restraining order, or other order

exceeded

Act, and shall be subject to

such

ministrator has

business may

section

contained

warning
notice shall be sent by registered

for defense area housing accom¬

injunction,

temporary

of trade

For the purposes

such acts or practices a per-

manent

?
i

section

able

consideration

costs

order

gaged or is about to engage in

price

any

reasonable

istrator that sucn person has en,i

(b), or any of the provisions of

applicable maximum price,
wnichever is the greater, plus

pliance with such provision, and
upon a showing by tne Admin¬

selling;

person

any.

living

together

with

nected

;

action either for $50 or
treble the amount by which

the

Act,

enforcing

oraer

lor

202

mail to such

enjoining sucn acts or practices,
; or

•

206, which is applic¬

application to tne

court

section

for

constitute or will

section

effect

same

for

used

pancy

ent with the standards contained
;

schedule effective •> in
with the provisions

bring

vision

section

under

pro-

section

for

renc

i privileges, services, turnismngs,'
furniture,
and
facilities "con¬

price schedules shall be consist¬

subsection, or has violated
any
of the provisions, of any
regulation, oruer, or requirement
i

erties

this

accordance

course

Administrator

constitute a violation or any pro-

or action.

under

issued

for

purposes

boarding nouse

ing purposes)

price sched¬
ule is superseded by action taken
pursuant to such section 2.
.Such

provi¬

under

offered

accommodations, and otner

-this Act until such

person

issued

Administrator

tne

any

personal property

dwelling

or land

cluding houses, apartments,

vided for by section 201 of this
Act
takes
office,
shall,
from

;

accom¬

bunding-

thereto,

tels, rooming

the Ad-

any

thereof,

or part

living

Supply, prior to the date upon

engaged or . is
in any acts or

has

person

any

about

the

inter¬

may

sucn sun

of the

license

buys such commodity for use br
consumption other than in the

provision.

Whenever in the

(a)

the

any

(e)

Enforcement
.

commodity violates a regulation,
order, or price schedule pre¬
scribing a maximum price or
maximum prices, the person who

regula¬

sucn

any

tion, order, or price scnedule, or
to
restrain
or
enjoin the en¬

Administrator

vene

effective

sions

Office

ministrator of the Office of Price
Administration
and
Civilian

Whenever in the judgment

violated "any

has

Administrator.

fact

The

regulations

sucn

making

such

such price schedule, or any

any

require¬

agreement tnereunder,
the court having'jurisdiction of
such suit or action shall certify

schedule,

price

order,

ment,

the

Price Administration
...

tion, order, or price schedule, 'or
to stay, restrain, enjom, or set

Any price schedule

means

real

rented

the

206.

.Sec.

is in effect under paragraph (2)

ground

upon

Saving Provisions

establishing a maximum price or
maximum prices, issued by the

notwithstanding that
such - provision, i of this subsection with respect to
regulation, order, price scneduie, V such person an order of suspen¬
sion of a previous license to the
requirement, or agreement may
extent that such previous license
be modified, rescinded, or deter¬
authorized such person to sell
mined to be invalid. In any suit
such commodity or commodities.
or action wherein a party relies

accordance

provisions

the

Administration

ian Supply,

modations"

appurtenant

person

license

(f) The term "housing

;

structure,

subsequently

•'

•

Administrator

commodities, unless
already has such a
such commodity
commodities, or unless there

such

of tne

such

otner

power to deny to such perlicense to sell any com-

modity

and

license,

of this Act.

son

Office

the

of Price Administration

snail nave exclusive juris-

have,

suspension, shall confer any im-n
munity from any other provision

the Administrator shall not

son,

require¬

price schedule

any

Administrator of

the

Emergexicy Court of Ap-

tne

sion

fisher-

fishery
commodity caught or
taken by him: Provided jurther,
That in any case in which sucn
a license is required of any per¬

good

agreement tnereunder,

Under

;

peais,

Act

price; schedule,

order,

orders

ana

aone

any

condition of selling any

man as a

thing done

any

be required of

may

pursuant to any provision

this

Tne

Court

judgments

respect of

Terri¬

grounds, for

on any

omitted

of Appeals,
supreme Court upon re-

.aria we

court,

; Court ; shall
aavaace
on
tne
tciocKet and expedite tne disposi¬
tion of all causes filed tnerein

Federal, State,

any

torial

2d, sec. 347); Tne Supreme

675

Aylesbury from 1910 to 1923

age of

Jan. 28, at the

60, according to

dispatch

from London to the N. Y. "Times"
dated Jan. 28.

Mr.
ner

Rothschild

in the

was a part¬
banking firm of N. M.

Rothschild & Sons.
In
of

1917

received

the British Empire.

the

Order

676

THE COMMERCIAL & FINANCIAL CHRONICLE

Erwin S.

Opportunity In Pension Funds Stressed

cer

Bank,

At Trust Conference-Other Addresses

Anderson, Trust Offi¬

plies will

of^ the Merchants » National

the

called

Feb.

urged

tiust institutions today to make
Addressing the Midwinter Trust Conference of the Trust Division
surveys of their business areas to
on Feb. 3, Henry W. Koeneke, President of
determine the quantity of new
the American Bankers' Association observed that "for the second
business
they can obtain.
Mr.
time in the life of the Trust Division our country is at war*. And
Anderson
is

terms

victory is
who

also

President

Security v; Bank
Okla.

further

major

that

conduct

must

which

that

banks

provide

the

be accomplished by
cooperation is in the work of

"the

good

will

can

the national Conference of Com¬

nation

missioners

tion

know,

goods directly and
and promotion of the

war

indirectly,
sale

Laws.

defense

bonds.

These

Uniform

State

That

is, as you well
independent organiza¬

tion affiliated with the Ameri¬

I think it

Association.

Bar

can

as¬

recommended such

until

Another field in which much

at war fall into two classifications,
enlarged financing of the produc¬
of

affairs

our

the^

City,

Ponca

remarked

services

have

now

fact

and peace is reestablished in the world." Mr. Koeneke,

won

that

There

volunteer to accept

behalf of all banks.

be carried

that

anything
date."

out

The

has

They will
scale beyond
been done to

added:

American Bar Association. None

light

than

tion.

program

this

will

its conferences

"shirt sleeves"

be
v

conditions.

war

ever,

sessions such

the

and

one

discussions

planned will be directed toward
of

This

service.

war

our

the

first

com¬

1942 conferences.

pliment you on your theme,
"Adapting trust business to war¬
conditions."

time

alert

the exigencies of the time.
You

performing

are

foundation

democracy.
considerable

vital

service to the homes which

t the

to
.

are

American

of
your

care

are

the

of many

peo¬

degree

lives and futures

As you prevent waste and

ple.

neediess

of estates
the assets of our

dissipation

preserve

you

national

economy.

the

tect

lives

you

pro¬

futures

and

beneficiaries you help to assure
the realization of the true des¬

tiny of America. War heightens
your responsibilities
and your
opportunities too.
Walter P. Armstrong, of Mem¬

phis,

Tenn.,

American
as

Bar

Conference

the

who,

participated
Mid-Winter

the

Association,

speaker,

Feb.

President

Trust

011

Trust

Division

our

associa¬

which

country

our

is engaged. I need not argue to

sources

can

certain.

seems

industrial

our

forces

armed

our

implicity rely.
What we must make quite sure
of is the morale, or as I prefer
to call it, the self-discipline of
the
people — a self-discipline
we can

whicn
to

make

will

those

endure

sacrifices

them

uncomfortable

which

will

become

increasingly necessary—a selfdiscipline which will teach them
to dwell upon defeats only that
they may show us the way to
success—a self-discipline which
will never permit war weariness
to
a

lessen

our

will for

victory—

self-discipline which will

able

en¬

achieve that Spartan
fortitude which subordinates the
to

well-being of the individual to
the safety of the nation.

should

allow

not

dered,

stated at the

was

Con¬

ference on Feb. 4 by G. Warfield
It is a demonstration
of the possibilities of future co¬ Hobbs, 3rd, Assistant Vice Presi¬
dent
City Bank Farmers Trust
operation by the members of the
American Bar Association and the Company of New York City, }n
an
address on "Opportunities in
offices
of
trust
companies." In
the
Field of Employee Pension
part Mr. Armstrong added:
us.

Trusts." Mr. Hobbs said that "our

There is a definite place in
the Trust Section of the Amer¬ thinking

ican

Association

Bar

who

for

law¬

employed by cor¬
porate fiduciaries. The general
objectives of your division and

yers

are

of this section of the American
Bar

Association

similar

are

that each seeks to

changed a bit and
many
of us have discarded the
association with charity and come
to regard a pension as a deferred
compensation rendered." He
stressed
this
point of the new
definition
for
pensions because
"we are here seeking opportuni¬

Participation in the work
the

American

the

unlimited

almost

opportuni¬

ties for trust companies to aid and
Association
share in the development of this

Bar

by lawyers who represent trust
comparatively new field of busi¬
companies affords them an op¬
portunity of exchanging views
with lawyers who are in the

ness.

Mr. Hobbs further said:

Deferred

general practice in all sections
of the country and who have
diverse
backgrounds and dif¬

plies

ferent

ent in that definition is

ideas,

benefits
mits

resulting

with

both.

participation

also

the

right

for¬

which

legislation in the
helps in keeping
of legislation enacted in

proposed

trust field and
abreast

the several states and the large

decisions which are

number

handed

down

courts.

for

the

various

employed by trust
companies are largely concerned
with the problems of trust ad¬
Lawyers

ministration.

Lawyers

sion to

per¬

mative work of the bar relating
to

for

tion

the

paying

modest

pen¬

few old-timers. Inher¬

something

for

protection

his

has

vested

value

good

own

been

and

withheld

from the employee until it may
be
paid out to him for the

security of his old age. Social
security is a great forward step,
it is not enough. Its $300
$400 for the average worker
and its top of around $700 sin¬

but
or

general practice are more usu¬

...

want

they

take

experiences necessarily is to the
advantage of both groups.
;

study the subject and find out

plans and I believe
and

many

will

many

when

Declared

time

really

how little is the actual cost.

tribution to all.
The American

iriillion

not be

Corn loans

the

stabilize

corn

can

They,

continuation of these par¬

will

corn

the

ob-

farmer,

are

at record

Families

hoarded
both

are

On the other hand, corn prices

part.

record levels.

the

past
Now

simply misguided.

be maintained.

living.

their

Total supplies of

staple foods

or near

who

occasion for hoard¬

ing of food.

ity returns to the

cost

can

most

parity for the
Programs to as¬

assure

sure

where

people should

wttl

the

too,

There is

now

farmer.

ultimate:

cases

jective of their government to

the cash

corn

misguided

were

they

and

un¬

patriotic, for such buying

up¬
sets markets and
encourages in¬
flationary price advances.
It should be a

paign, have

Unjustified

with

statement

Corn

27 said that the recent

advances

justified

and

Department

declared
would

that

use

corn

the

which

every

tions

the

the conversion of

are so

war

supply.

our

modities

these

the

corn

vital

prices recently have
exceeding cash prices by
considerably more than their
usual

relationships,

unusual

/Government
mobilize/its full

this time.

corn

moving

evidence

out

that

the Ever-

than for

The
to

feeding and processing.

Department

take

the

assure

livestock,

feed

prepared

necessary

poultry producers
of

grains

steps

dairy,
an

and

abundance

reasonable

prices.

and

make

loan

programs

entire

our

Ever-Nor¬

mal
to

Granary reserves available
livestock, dairy, and poultry

producers and
We are

corn processors.

going to encourage bona

tide

feeders

carry the

and

processors

largest possible stocks

ot corn and feed

grains in their
storage facilities. This will

not

only help feeders to stabil¬
ize
their
operations
over
a
longer period of time, but will
also

help forestall storage and

transportation difficulties which

develop

may

when

the

1942

wheat crop comes on the mar¬
ket.
At the same time we are

going to take positive steps to
avoid having our Ever-Normal
Granary corn supplies end up
the hands of speculative in¬
terests.
We
will
also
take

whatever other steps are neces¬
sary to see that elevators which

wheat

The

to
for

joint statement issued

connection

the

with

Price

the

Control

passage

consumers.

Our

aim

stabilize living costs and
pre¬
vent war-time inflation or
post¬
war
deflation.
We invite the
assistance of farmers and con¬

sumers in

Act, Secretary

agricultural production
prices fair to farmers and

seeing that the job is

done*

Henderson said on Feb. 3 that
their agencies "intend to
spare no
effort to prevent inflation" and
that the two agencies "are in com¬

plete agreement
to be achieved."

U.S. Will Buy Cuban
Sug*
President

Fulgencio

Batista

Cuba decreed

on Jan. 28
rigid cor
trol of the Cuban
sugar crop in

objectives "plan of close cooperation" d<
signed to provide as much
sug?

Under the Act,

Price Administrator cannot as possible to the United State
ceiling prices for farm prod¬ The decree authorizes the Cuba
ucts without the
Secretary's con¬ Sugar Stabilization Institute (I.<
sent.
If inflation is to be con¬ E.A.) to buy the entire 1942 crc
the

set

We are today modifying our
sales
to

Agriculture Dept., 0PA
Act Against Inflation

Agriculture Claude R. Wickard
Granary is being used
and
Price
Administrator
Leon
speculative purposes rather

Normal
lor

intends
resources

all-out

indicating

speculative interest in

There

corn.

time

We should like to
repeat that

Future

Agriculture

the

said:

been

relatively

time
of

and to desirable shifts in
habits.

food

production of meat
dairy products is unthink¬
at

are

From

Department

ance,

in the

able

market," the
He further

can

and the Office of
Price Admin¬
istration will draw the attention
of
consumers
to
commodities
which are in relative
abund¬

increase in their prices. A slowup

plenti¬

Thus, they

that

abundant.

na¬

bring about

are

output of larger supplies by di¬
recting their purchases to com¬

the Axis.

buy

which

assist farmers and
stimulate the

dairy products
urgently needed to

waging

should

commodities
ful in

and

production

advances in the

declared.

sumers

are

point of pride

every good American not
or to waste food.
Con¬

to hoard

feed supplies into the

food products or

and

Secretary

prices

Unwarranted increases in

000,000 bushels next fall, there is
no
justification for recent price
corn

effect

prices would either slow down

than 600,-

retarding

feed ourselves and the other

feed

carryover

and

corn

disposal to maintain
prices for live
stock, dairy and poultry produc¬
ers.
"In view of record supplies
of feed grains now available in
this country and a prospective
reasonable

speculative

such relationship

livestock

at its

means

livestock

encourage

speculative
prices are un¬

corn

and

now

Jan.

higher

upon the entire war effort, and
■eventually be to the long-time
disadvantage
of
the
farmer.

Secretary of Agriculture Claude
R. Wickard in

are

needed
not

for

filled

storing

with

corn

Commodity Credit Cor¬

poration still

owns over 95

lion

the

In those
not

payments,

Corn Price Advance Is

held for speculative purposes.

ally concerned with the creative
work of drafting trust instru¬
ments.1 A fusion of ideas and

detriment

pushed

tions

sion

realize that it

program' will

all

interests will jeopardize the en¬
tire
Food
for
Freedom cam¬

may

will have to supplement
security with private pen¬

afforded

distribution to the

obtain for their crop, plus AAA

Wilkes-Barre, Pa.

gle benefit for the higher-ups is
only part of the story. Corpora¬
social

than

enough
to
go
around, steps will also be taken
to assure that there is fair dis¬

esti¬

bushels

prices which farmers

own

compensation • im¬
than mere justifica¬

previously

million

less

farmer.

Officer of the First National Bank

has

help in bring¬
ties for the trust business and if
ing about a higher degree of
technical skill and more meri¬ you will accept the new definition
of deferred compensation you will
torious conduct in the manage¬
at once grasp the significance of
ment of trust affairs.

the

of the trust officer.

willing

the

This

eventually win
Upon the cour¬

and devotion of

age

re¬

bushels.

in which

Montgomery, Ala. and Sterling
you as to the necessity of vic¬ L.
Wandell, Vice-President of the
tory. That with our man power Wyoming
National
Bank
of
with

from

corn

Department

through the channels

there

hol

its members. We are
Among others who addressed
dedicating all our resources and the conference were Walter Ken¬
our efforts toward aiding in
nedy, Vice-President and Trust
in

protection
way

consumers.

mated

you among

war

manu¬

quired for conversion into alco¬

conclusion, I give you the survey is a combination of factreason
why
the gathering and the common sense

Pension funds are no longer as¬
grati¬
sociated
with
charity but have
fying in itself as was this joint
come
to be regarded as deferred
enterprise of our two. organiza¬
for
services
ren¬
tions it has another significance compensation

which

all

the

this

sub¬

corn

the

establish maximum prices.
such cases it will see that

reduce the amount of

paramount

American Bar Association needs

the

will

facture of alcohol will
probably

"is to be
survey of the field for
area

Also,

stitution of wheat for the

new business.

trust services in the

assistance

an¬

the

he declared,

loan

recently

of the ABA stated that "as

escape

found in

in all cases be suf¬
Where prices get out of
line the Office of Price Admin¬
istration with the advice and
not

ficient.

requirements.

the trust institution is located. The

and

Association

Your

is released unless

is first approved

Association's

meetings has been recast in the
-

its acts

problems,

the

will

and

powers

high production costs.
A high level' of production

million

Adminis-,

its

that farm production will not
restricted by unnecessarily

program
for
wheat will be expanded if nec¬
essary in order to meet feed

to the first of these

answer

under

sales

new

rr^sec* *n °ktaining
The

500

pooled

and

nounced

the amount of money that should
be spent in attempting to obtain

fairly be said that it func¬
under the auspices of the

may

tions

holds

Price

use

prices of the things
that farmers buy are held
down,

which

wheat

business, and the methods

1941

approximately

These are, he said, the
business available

amount of

going

now

will

that

see

exclusive

crop

bushels

war.

are

continued

corn

Office

tration

poultry pro¬
of live¬

This

is also subject to call.
The Corporation also

being brought

are

processors

loan from the

sur¬

three major problems
lacing tiust institutions in seeking
new business today, Mr. Anderson

new

signments

that

by the

and

feeds.

the

veys as particularly important in

about

livestock

ducers

the light of shifts in the economic

structure

The

un¬

stock

of the ABA in New York

be available for

that ample corn supmediate nation-wide movement

Bangor, Maine, addressing

conference

Thursday, February 12, 1942

bushels
than

corn,

it sold

If necessary,

loans

mil¬

which

during 1941,
on

approxi¬

mate1/ 170 million bushels of
1938-39-and

corn

will

the
form
of
either
trolled, the joint statement says,
suga
effective, positive steps must be syrup or molasses. Further detai
taken to stabilize the cost of liv¬ were reported in Associated Pre;

ing

and the Agriculture Depart¬

ment

and

the

OPA, it is added,

"intend to pool resources to do all

Ihey

can

The

statement, issued

to accomplish this end."

Wickard and

tary

Henderson,
First

Secre¬

Administrator

continues:

abundant

all

must

have

and

the

tends to

see that every
possible
step is taken to insure abund¬

supplies for all.

been and
sumer's

best

prices.

This has

will remain the
of

assurance

Government

ment

fair

owned

be used to supple¬

private

stocks.

jFarm

legislation and the farm produc¬
tion goals for 1942 have now
placed

floors

under

the

farm

prices of all major products at
levels sufficient to protect farm-

jers in carrying out a great in¬
crease

taken

United

long

production. Steps will
to keep feedstuffs at

•reasonable levels

States

tons

all

sell to

but

reserved

200,0(

for

Cuba

domestic consumption and 65
000 tons for other
exports ma:
kets.
^
remainder

expected to approach

the
a

cro

total

4,000,000

tons, will be sold '
the United States, and
34,000,0(
gallons of syrup will
be
si
aside for manufacture of alcoh<
for the United States.

con¬

stocks of grains and cotton will

continue

follows:

The Institute will

The
we

production

Department of Agriculture in¬

ant

Havana advices

in order that

Crude sugar will be sold at
minimum

2.65

United

States

furnishing

ships to

remove

it.

Price

increases

are

if "the present
ceiling
3.74 cents, freight and
in New

provide

price

duty pai
York," is raised.

The order said that since tl
States
and
Cuba bol

United

at war against the Axi
the United States would be a:
forded all sugar possible "for i
were

Increased, production of meats
and livestock products will not

powers allied

democratic cause."

hampered by high feed costs.

cents

pound,- Cuban dockside, with tl

consumption

that

oth<

in defense of tl

Volume 155

Number 4045

THE COMMERCIAL & FINANCIAL CHRONICLE

Cullin, President Of Financial Advertisers

crops were considerably
than a year earlier.

Boston

prices
reached
the
highest level since May 1937 as

Avge. 102% Of Parity

Jan. 29, Victor

the

will end in the year

war

"However,"

1944 with the anti-Axis nations

said

Mr.®

Cullin, "if this

counts

then enter

the

will test
an

greater degree.
We will
an air war and we

fought

will have

medical
and

destroyed much of the

wealth-producing properties in the
beleagured nations." Damaged or

(10)

which
war.

country will

appears our

be free

from

such

havoc; therefore, it will be

our

and

of lease-lend

sort

mate*

raw

can work

plan

out

for

cer¬

sale
and

that

period that will call for

even

Savings
but this

the

should

line

with

this

have

thought

that

banking

directed

to¬

of people rather
few.
Due to the

masses

selected

spot

one

opinion

years

conditions
in

many

means

have

outlined

aren't

excellent position to use

augment

Boston

Illinois Bankers Hold

Financial

England
also had

serve

relations

public

business

experiences
at

war

new

only to

earnings,

our

nation

and
not

but

the best

ability?

our

Advertisers,
the following to say in part:
I've been trying to get a pic¬
ture

1942

business,

the

will we gain,
and where will we Lose.
I use
the words gain and lose be¬
I

cause

know

carry

fective
of

one

know

sort

any

ef¬

In discussing
contentions
with

program.

various

all

show profits if we are to

must

officers

executive

our

less

agreed

the

short-term

think

that

bankers from Il¬

attended

the

47th

annual

mid-winter conference and dinner
of the Illinois Bankers Association
at

the

Palmer

House

Chicago

last month. The afternoon session

presided

Bengel,

over by Henry G.
Vice-President and Trust

Officer

was

the

Illinois

National

Bank, Springfield. An innovation
was inaugurated at this session—
ducted in the

manner

was

con¬

of "The Man

personal loans for the F. Ford, American National Bank
of meeting income tax & Trust Co., Chicago, as inter¬

purpose

payments,
of

the

and

necessities

offset

the

automobile

loss

and

financing
periencing.
paper

new

installment

viewers.

The

interviews covered

consideration by
at this time.
ous

The country

we are now ex¬

the bankers

bankers of Illinois

admonished by A. G. Brown,

were

possibility we Manager of the Agricultural Credit
will in our city have an in¬ Department
of
the
American
crease
in
defense
housing Bankers Association to "Get the
Facts" about the agricultural sit¬
loans that may offset our present
drop-off
in
non-defense uation so as to be able to cooper¬
ate intelligently with an "all out"
constructions loans.
(4) There is an indication of program of "Food for. Freedom."
(3)

There is

corporate

loans

and

collateral

loans, as well, for tax purposes.

(5) In St. Louis we expect
an
increasing number of new
customers

the

due

comers

that

feel that this will prob¬

are

arriving daily,

exceed
the
anticipated
drop in savings accounts, and
checking accounts of those cus¬
ably

tomers

who

business

are

forced

out

during the emergency.

(6) Due to higher wages we
will

feel that checking accounts
be

opened by many who have

heretofore

(7)
boxes

depended

cash.

safe deposit
points to a loss of cus¬

The

tax

tomers in this

department.'

This

in the Western

(9)
—should

The

Hemisphere.

trust

obtain

new

The

left

American

Denmark

ac¬

Legation

and

its

has
way

to the United
a

States, according to
dispatch from Copenhagen re¬

ceived at

earlier

year

and

workers,

New

States.

the

ucts

and

farms

was

but

still 47

was

earlier.

year

less

than

Copenhagen
day

in order
States

and

100,

beef

105,

eggs

cattle

128.

hogs
The

100, announced

aver¬

members
Berlin.

had

cost

was

marketing charges declined.

The

food

dollar,

increased
vember

consumers'

the Department,

says

from

the

cents

No¬

December.

During 1941 non-farm family in¬
increased

come

prices.

income

income, the

require

now

share in

record.

further

foods

same

formerly—actually

the smallest

about

food

terms

smaller

than

Measured

consumer

years

advance

retail prices

of
of

of do¬

mestic foods occurred in late De¬

cember

and

cording

tion.

early January, ac¬
preliminary informa¬

Trends

kets

indicate

farmers

wholesale

that

made

during the

mar¬

paid

substantial

period,

same

Bureau's

prices

gains
the

says

announcement

which

further states:
Food
prices
in
December,
1941, averaged 15% higher than
in
December, 1940; non-agri¬

the

that

rise

domestic •' foods

and

cultural

income

consumer

December, 1941, averaged 17%
higher than in December, 1940.
But

the

rise

greatly
foods, as

ent

food

prices

as among

varied

differ¬

did

income

consumer

the

tions.

•

Increases

ranged

rise

than

less

breakfast

occupa¬
•

food

1941

from

cereals

vari¬

among

non-agricultural

ous

House

the

from

negligible

prices

advances

the
to

case

20%

for

white flour, 23% for.eggs, 32%
for pork products, and 42% for

the

term¬

index stood at 119%

of the base six months

after

the

present

Analyses

The

rise

Congressional action and Presi¬

animal

uary

was

the

represented

price

at $9.77 a

of the

market

cottonseed

cotton

prices

the month

lint

was

and

79%

over

Lint prices were
cottonseed prices de¬

earlier.
but

With

operating
smallest

domestic

high

domestic

mills

levels,
carryover

the
of

cotton lint since 1937 is in pros¬

The

upward

in prices
growers
of com¬
trend

at 2

the

•

and

Spinach
of

all

was

five

of each

zone

for

full

material

that

the

matters,

an¬

Committee

failure

of the Committee to

complete
records

books

instructions

keep true and

account

adequately

and

setting

forth

its transactions.

The Committee did not find any

amended, shall be advanced

one

hour.

SEC Orders

Sec.
to

This

Act

shall

cease

be in effect six months after

the

termination

war

the

such

rent

the

resolution

designate,

and

nomical

longitude

for such

vided in

such Act

1918,

Chicago

from

membership in the National

Association

this

Inc.,

Act

shall

astro¬

degree

governing the stand¬

time

hear¬

calendar

mean

the

zone

the

time

at the Commis¬
regional
office,

why

to be in effect the stand¬
of each

sion's

cause

calendar

Sunday in the
month following the
month during
which
time

Exchange
has
ordered
Harry
Weller, Chicago security

broker, to show
ing on Feb. 18,

concur¬

Hearing
and

Commission
William

at 2 o'clock antemeridian of the

ard

Securities

date

last

ceases

The

present

earlier

Congress shall

and

Prices

Exchange,

evidence of improprieties in con¬
provide standard
or
time for the United States," ap¬ nection with credit .balances
securities of customers.
proved
March
19,
1918,
as

light

the

8%.

o'clock antemeridian

day after the
of enactment of this Act,

ard

carrots

Curb

of its policy of giv¬
publicity to disciplinary

pursuance

Member Firms has

twentieth

than the first half of December;
lettuce was up 16%; cabbage 8,
down

Senate

the

established pursuant to the Act
"An Act to save day-

and

enacted

entitled

local

the standard time

change during the month.
of

nounces

date

hundredweight, a 12-year
peak. Wool prices showed little
index

secur¬

action

ning

per

mid-January

The New York

promote the national

below the peak
September 1941; and
prices advanced to $10.30

The

slightly lower than
earlier.

imposed a fine
of Representatives of
the United States of America in of $250 upon the firm of Herbert
E. Stern & Co., New York
City,
Congress assembled, That begin¬

cents

Curb Imposes Fine

ACT

and House

1910-14

at the highest mark in 13 years;
hog prices of $10.55 per hundred
were

Bureau

1941

year

ago.

year

ing daylight saving time.

compared with 128%
Beef cattle prices,
hundred pounds, were

average,

the

the year but then declined, and
ended

ity and defense by establish¬ ing

level

index in mid-Jan¬

166%

and
retail
prices
increased
slightly during the first half of

(S. 2160)
AN

reached in September 1941. The
meat

and

revised

points

the

recovery

non-

tically all of the rise in retail
prices of food was passed back
to the farmers, that the mar¬
keting margin between farm

dential approval of the legislation

of ceilings
fats and oils upward.

meat animal index

muni¬

Agricultural
Economics
show
that during the past year prac¬

before then.

its original schedule
on

and

relatively small

practically no gains to a large
body of salaried workers.

establishing the new time was re¬
Rough rice prices also continued ported in these columns Jan. 29,
to rise and prices received for
page 485.
soybeans advanced as the Office
The text of the law follows:

of Price Administration

workers,

gains

gains to other groups of the
agricultural
population,

war

ends, unless Congress nullifies

Greatest

industrial

gone

included) for the first time in serving electrical energy for the
defense effort, the standard time
The 7-point gain placed the of each zone in the United
States
grain price index at the highest was advanced one hour on Feb. 9.
level since August 1937.
This "War Time" will remain in effect
period average, compared with
84% a year ago. Prices received
by farmers for both corn and
small
grains showed material
increases
during ? the
month.

potatoes.

tions

21 years.

in company

with
Embassy in

Feb.

offered

mid-December,

in non-agricultural income have

mercial

to¬

White

food

Irish

the
in
the

the
same

consumers

of all farm product prices inology in response to
requests
102% of parity. In Septem¬ made
by railroads, Government
ber 1941, when this ratio was
agencies, industries and others. In
101, the'"average of prices re¬ accordance with the Act of Con¬
ceived exceeded the average of
gress, approved by the President
prices paid (interest and taxes on Jan. 20 with a view to con¬

of
Legation
to

left

nearly

rose

while
the

group

age

received

Denmark

products

of
28

was

the

return

and

Agricultural

paid to farmers for

mid-November to

was

Roosevelt

The

President

returned

the

decline

President

truck crops continued
during the first half of January.
Celery prices were 60% higher

left

from

points above

The

seasonal

Time."

into

personnel

sold

unchanged.

States

Central
were up

The chicken and
egg pricq in¬
dex showed a decline of 6
points

"War

pect.

the

South

and

Corn 78%, cotton 94, but-

change which
has
occurred
in
the
political
situation
following the ' entry

United

points
Jan. 15, 1941 and

Butterfat prices

nated

communique from the Foreign
Ministry
announcing
the
de¬
parture as follows:

States

1910-14

representative

15, when expressed early morning hours (2 a.m.) of
percentage of parity with Monday, Feb. 9, has been desig¬

clined.

United

straight

the

This

churned

Bureau

that prices

Jan.

the

third
of

fractionally for the Nation as
a
whole, and prices of butter

The

Economics, U. S. Department
Agriculture, announced Jan.

farmers'

148%

Mountain

Farmers Receive Higher
Prices For Products

a year earlier.
index at the highest point for
During the month grains ad¬
January since 1930. Egg prices
vanced 7 points, meat animals
declined but chicken prices in¬
6, cotton and cottonseed 5, and
creased.
fruits 4.
Dairy products as a
group showed no change from
"War Time" In Effect
mid-December,
and
poultry
products dropped 6 points.
The new daylight
saving time
Prices of leading farm prod¬ which
became
effective
in
the

York "Times" of Jan. 25 gave the

Because of the

were general ex¬
cept for slight advances in the

higher than

year

The

24.

cents

mid-January

comes in December was 185% of
the 1935-39 average or 50 points

"Times"

Jan.

3.28

offset small declines in whole¬
sale prices of milk.
Declines in the average price
received for wholesale milk in

rise of farm product prices. The
index of industrial workers' in¬

for

mid-

highest
since
December
1929. Slight advances in butterfat
prices were sufficient to

point

com¬

cents

the

a year

resulting

for
at

higher than

re¬

points
and the

points above
the highest

pound

4.79
and

average.

1909-14

ago

for dry

15, 1941.

steady

was

prices

cents

with

month

increased demand for food, has
been an important factor in the

Berne, Switzerland, and
telephoned
to
the
New
York

United

department

many

was

lamb

Denmark; On Way Home

war,

only hope for for¬
eign exchange is the possible
stimulation of trade and travel
(8) The

This

the

mid-

received

The dairy products index was

reached in

U. S. Legation Leaves

new¬

and

Jan.

Prices paid by farmers climb¬
ed to 146% of the 1909-14 level.

life, but it's doubtful if this timely subjects that demand seri¬

will

war

crease

slightly
gains be¬

farmers

same

December

products raised the

149%

period.
higher than

terfat

One thousand
linois

goods on the Street." The program was
production loans and long-term not broadcast and was conducted
defense construction loans will by John H. Crocker, Citizens Na¬
increase, it will not be suffi¬ tional Bank, Decatur; B. J. Maicient to offset the loss in con¬ worm,
Continental Illinois Na¬
tional Bank & Trust of Chicago;
sumer goods financing we know
Laurence A. Kempf, The Northern
will suffer.
(2) There will be an in¬ Trust Co., Chicago; and Thomas
while

base

the

pared

de¬

mid-January index of prices
ceived

were:

radio interviews—which

following trends:
(1) We seem to

increased

and

prices paid, interest, and taxes,

banking

where

commodities,

trial

that

majority

experience during the war period.
Mr. Cullin, who is also Assistant
Secretary of the Mississippi Val¬
ley Trust Co. of St. Louis, in his
address, which was delivered in
New

some

seasonal

to 5.11

record production of

work, long hours and

association.

services

earnings

our

year.

our

the

Even with

There

horizon

for

will have diffi¬

greater sacrifices and more deter¬
mined leadership than we will

before

reached since August 1930.
The rise in incomes of indus¬

hard

the

present year,

microscope

last

initiative.

than

war

take

interest,

perhaps outright gifts.

the

culty in keeping

ward the

Defense

Stamps,

that all of

tain
strategic
possessions,
or
perhaps a loan at a low rate of
In any event, we will have a
post¬

about

prices paid, says the Department,
brought
the
average
of
farm

mand for farm

of course, ex¬
much greater activity

doesn't

see

much

care

develop

men.

outlook for

our

people

food, medical
Maybe

will

advances.

made

edible beans. Peanut prices were

we gladly render with¬
highest point reached since Octo¬
profit.
ber, 1929. The Department's an¬
Now, after this brief resume of nouncement added:

rials.

Army increases fur¬

sharp

tween mid-December and

January,

leaving, product prices to 102% of
parity.

are

than

prices received by farmers and a
3-point increase in the index of

service

job to replace all of these things
in order to permit the
conquered
to return to
a
peace¬
time economy.
During this tran¬
sition we will be called upon for

enter

culture reported on Jan. 29.
A o-point rise in the index

Sweetpotatoes

out

greater than ' that
experienced in the last

was

the

Bonds

far

Fortunately, it

who

We will,

perience
in

who

prospects

from older

lihood of the people.
Mr. Cullen
went on to say; Luch destruction
be

those

men

the

ther

destroyed transportation facilities,
harbors, ships, factories, and other
properties essential to the live¬

will

from

Service.

Agency accounts,
custodianships and trusts are
presently
in demand by the

financial abilities to

our

even

have

be true, we will
post-war period that

the

result

Cullin, President of the Financial
Farmers were receiving higher
Association, observed that ''based on production abilities prices for
agricultural commodi¬
of the warring nations, so
competently set forth in a recent St. Louis ties on Jan.
15, but they also were
discussion of the subject by Dr. Harold G.
Moulton, economist and paying more for their own
pur¬
director of the Brookings
Institution, it seems quite probable that chases, the
Department of Agri¬
Advertisers'

victors."

higher

Potato

Sees Post-War Tests Of Financial Abilities
In

677

zone

pro¬

of March

amended.

Approved, Jan. 20, 1942.

19,

should
of

and have

registration
The

expelled

Securities Dealers,

his broker-dealer

revoked.

Commission

charged thai
capital employed
business; that he owed sub¬

Weller
in his

not

stantial

had

sums

customers

anc

banks; that he had hypothecatec
securities

carried

for

customers

accounts, and had failed to kee]
proper records of his business.

THE COMMERCIAL & FINANCIAL CHRONICLE

678

101.5%

Canadian National Income In 1941 Largest
in

cember.

History Says Nova Scotia Bank President
national

meeting at Halifax
"Tne

than

for the last

estimate

the

year

for 1940 and is«>
over
$2,000,000,000 greater than'
in
1938—the
last
full
year
of

but

summer;

when

even

allow¬

this factor it

made for

part of the
increase
reflects
enlarged pro¬
duction and effort by the people
that the greater

clear

With

regard

Mr.

inflation,

Because of the

plies,

material sup¬
just past brought

the year

people

cause

try

symp¬

arises

scarcity:

tom

inflation

For

tion.

threat of infla¬

fore the

the

growing scarc¬

labor and

be¬

buy more

goods
and services than
currently available and it

are

highly desirable that they be
as rapidly
as is pos¬
sible without adding to our eco¬

cember.

heavy

problems. I do suggest,
that the problem of

met

but

anything

war

of Dec.

ferred

our

the

31, 1941, was re¬
issue of Feb. 5,

;

its

commend

should

objective

The

fairs where there

is work for

all

of the capable and adaptable un¬

employed, has
for

all

"In

been reached

now

practical

purposes.

Canada,"

according to Mr.
McLeod. "the wholesale price in¬
dex, which had
points during the

risen
war,

by
rose

107
bv a

further 50 points from November.
1918 to May, 1920; and the cost
of

index, the wartime

living

of.

crease

which

had

been

in¬
57

additional
38 points
in the same post-war
period. There is no good reason
points, advanced by

believe

that the situation

be fundamentally different at

will

war

will

post-war

readjustment,

and

There

necessary.

will

large pent-up demand for
civilian
goods
and
services
a

which

not

will

fulfilment

until

capable of
machinery

the

peace-time industry has had
time to resume production.
If
all the controls

denly
face

removed
chaotic

were

to be sud¬

might well

the

saying this I do not wish
create the
impression that
controls developed in war¬

time should

be,

continued

year
crops

from

years

1924-29,

from

livestock

crops

and

for

or are

likely to

indefinitely.

seek

create

and

the

1940.

returns from soybeans,

sonally
come

adjusted

index

from crops advanced

in¬
from

Government

adoption of

the

bodies.

CIO

money

the

should

and

profits taxes or corpora¬

tions;

increased taxes on
present individual income

such

that

constitute

resolution

dis¬

working

rationing,

the CIO noted that many types

foodstuffs

have

would
called

and

for the

other

goods
and

limited

establishment of

rationing machinery on a per¬
manent

basis

the

war.

for

the

The

for

man

power.

the numbers

immediate

purposes.

defense

make

must

our

the-Lag bepresent conception of

understand

tween our

must

and

war

requirements of mod¬
ern war are. Perhaps ultimately
children may have to help. Esti¬
mates
10 to

reproach to
the Newark

the

in
v

differ, but they
25

run from
the number of per¬

required to keep one

sons

forces

armed

man

supplied

and equipped.

feels that each and every mem¬

place for any one to be where

the

ber V of

f
.

making

Newark

the

low-rent

this

taking

contribution
the

"There

Housing
step is
concrete and definite

Authority

does

the

man;

Lee and Dr. Carl Baccaro.

;

Gen. Hershey Sees All

Charles

time

some

perhaps

give

could

else."

six

far

not

months,

distant,
perhaps a

good

very

reasons

Gen.

the

'to

Director

National

Lewis

Selective Service, said on Jan. 28
in an address before the Advertis¬

Henderson

was

re¬

Directors

Reconstruction

the

Finance

Corporation on Jan. 28.
Mr. Henderson, who is from Ne¬
vada, was reappointed a member
the

than

elected Chairman of the Board of

Needed For Defense

will

Henderson Continues

authority

Frank G. Maguire, Chair¬
Harold A. Lett Vice-Chair¬
Charles P. Gillen„ John F.

man;

place for

As RFC Chairman

members

were

There

less

somewnere

■r: program.
The

will

slacker.

success

public-housing

tax increase in selective service

people.
In

be¬

all.

RFC

Jan.

for

two-year term

President Roose¬

velt and the Senate confirmed the
renomination

action

was

the Senate

and

with

respect

Similar

Jan. 22.

taken by

the President

the

same

four

members of the RFC board.

Sam:

are:

Husbands,

days

other
They

South

Carolina; Howard J. Klossner, of

Minnesota; Henry A. Mulligan,'of
New York, and

Charles T. Fisher,
These members
in again on Jan.

Jr., of Michigan.
were

28.

also

sworn

:•

•

the ing Club of NeW York. The recent

measures

vicious

crimination against the

budgeting of

needed

Housing
intends

age

expressed uncondi¬ the men of America face to face
tional opposition to any general with the fact that a war is
being
sales
tax
or
flat
wage
tax, waged. '
;w:
holding

of all

women,

use

have

may

record

We must figure on

defense.

CIO

would

When

the

bringing men through 44
individual income tax and the into the
eligible group for combat
corporation
taxes:
increased service, and the eventual regis¬
rates and lower exemptions on tration of men
up to 65 for na¬
estate
and
gift taxes; excise tional, defense service at home,
taxes on certain luxury goods. General
Hershey said, had brought

that,

can

man

base; closing of loopholes in the limits,

The

65.

the

Hershey,
taxes

later regis¬
18 and 19?

member of
Authority.
On the contrary, it
any

following contrary,"' Brig.

normal

service

what

According defense* industry, "or be able to

Increased
excess

the

have

"Perhaps the next step would
be

freedom

way

now

perhaps

what

States

personal

and

agree¬

tax program

people.

from

sources:

these;

citrus fruits, and apples, the sea¬

between

arbitration

and

come,

Because

peanuts,

Authority
this

just

milk, and

we
must
having in one
the ' cream.
We

harmony

agri¬

and the relatively large

conciliation

negotiation,

American

were'

the large income from

crops,

its

United

have

those

form

na¬

year, or two years, every Ameri¬
that would stop war profiteer¬ can must face the
possibility of
ing and at the same time would being in the armed services of the
protect the living standards of United States, or in some essential

sharply higher than usual, and
prices were nearly twice as high
December

with

deal

The executive board called for

December on record.
Quantities of wheat, cotton, and
corn
placed under loan were
large, and marketings of these

improve the wage

board

even

labor

for. any

quire

returns

also

which

employees.
The plan, as Mr.
Murray envisions it, would re¬

largest volume of agricul¬
marketings in December

rice

determined

not

employees of Fed¬
eral, State or municipal gov¬
ernments, but will sponsor as
tne first step, a demand that
every
governmental
agency

tural

and

has

method

standards of

production,
together
rising prices, resulted in

bacco

said

inflationary

CIO

exact

will

the

crops
during December were
larger than uspal. Sales of to-

meeting,

war.

The

$7-36,000,000 in
1940. Income including Govern¬
ment payments totaled $11,706,000,000, more than in any pre¬
vious year since 1920.

with

are

tion to the national

because

the

livestock

for

all

absolute

cooperation,; and

The

all

men,

all
difficulties, however
caused, will make a contribu¬

profits
have
risen "outrageously" since the
United States began to prepare

spiral

with

weather

board

stimulating

during 1941 totaled $585,000,000

Favorable

need,
that

and

private employers could
grant these demands without

products of $6,386,000,000 are
the highest for any year since
1919.
Government
payments

compared

5,000,000

have

tional
ment

people

of intense

after

on our

that

from

and

ark.

these times

cer¬

power

"There will

opportunity to
constitute an
entirely new board will speed
and help the program in NewIn

that

all

tration

is the
that an

opinion

We
the

bring back

and from 36 to 45.

reasons,

consensus

has

man

know

fore

these

17,000,000 as the result of previ-r
ous
registrations, and we will
have
approximately
9,000,000
more after Feb. 16
(the date of
the registration of meri of 20

in Newark.
For

power.

bring

not to have put

cream

operations of
housing program

low-rent

the

where

had

know

much

place

Au¬

effective

most

man

essential to Industry

men

age

economical

can

President

Murray,

executive

calendar

but the

the

now

leaven it by not

gram have not facilitated that
cooperation between the United
States Housing Authority and
the Newark Housing Authority
and

if there is likely to be a short¬

repeated

essential

put than

"We

public discus¬
disputes in connection
with the Newark housing pro¬

that

1940

during

the

back: from

England

issued

statement

•u" "

undone later in

difficult

Dunkerque.

from

Philip

Keyserling,
Administrator
of
the
In

distribution

tain

States

conference

to come.

armed forces to

Leon

and

The

the CIO, in making public these
actions at the conclusion of the

since 1920. Income from
of $4,735,000,000 is still

come

J.)

sions and

Tri¬

The CIO

United

conference,
thority said:

members.

somewhat below the average in¬

situation.

In
•

(N.

are

him there in the first place.
must
not
have
to
to
go

Resigns

the

after

exception of 1929

the highest for any

the

will be geared
huge readjustment

economy

with the

"Herald

the

alter

came

USHA.

new

complied with
by the unions, will constitute
the largest single wage demand
advanced in any short period in
American
economic
history.
Among the employers who will
be
asked
to
grant
increases
commensurate with rising liv¬
ing costs is the United States
t
Government,
as
well
as
the
governments
of cities,
States

cultural

Mr. McLeod said:

Our

the

close of this war."
As

and

Acting

substantial

for

Washington between the Newark

with

increases

the

Authority
over
that
city's housing program.
The ac¬

The demand, if

ask

must .not

what must

Gov¬

accepted

Newark

with

Housing

York

whenever

and communities.

"But

man

entire

ences

ing to say in part regarding the
board meeting:

Income

December.

marketings

farm

from

New

negotiated

York

New

in the years

Housing Authority resigned as of
Jan.-22, thus ending tne differ¬

Jan. 26 at the

demand

has

Newark H. A.

members

the

since

of it,

out

that

realize

doing many of the
things that we shall have to do

must now
its merits fn'each

case

the

now

smaller

all of its affiliated

.not

maximum

been

must

principle.

bune" of Jan. 27 had the follow¬

This is nearly 34%
than income received

000,000.

The board also took
action on
other issues, such as
taxes, union security and ration¬
ing of materials and foodstuffs.

much less than usual from

higher

ernment

employers.

policy is, it does not bacco, cattle, hogs, and eggs was
and cannot solve all our eco¬
much higher than usual in Decem¬
nomic problems.
ber, and income from many other
It is perfectly clear that the
farm products was up after sea¬
Government's rigorous tax pol¬
sonal adjustment, so that the sea¬
icy is contributing toward
a
sonally adjusted index of income
restriction in individual spendfrom farm marketings increased
ing. But heavy as taxation 1 is, from 112.5% of the 1924-29 aver¬
it
alone
is
not
capable
of
age in November to 134.0% in De¬
bringing about the necessary cember. The Bureau further said:
restriction
in
spending.
We
Because of the unusually high
must continue to rely greatly
level of marketings in Decem¬
on voluntary means of curtail¬
ber, cash income from farm
ing spending, that is to say on
marketings for the 12 months of
diverting income through -the
1941 exceeded earlier expecta¬
sale of both Victory Loans and
tions and amounted to $11,121,War Savings Certificates, v

Referring to his remarks of a
year ago, Mr. McLeod said that
the
condition
of
"full
employ¬
ment," defined as a state of af¬

Roosevelt

increases
agreements are

and

meeting

wage

and wage

individual

shocked

must

shop

be decided oh

if that leads to complacency,

Another resolution

closed

60,000,000

too, of the psychology of plenty,

made clear that it felt the issue

of" the

than

ana

and

manpower

something

have

whole job on the defense effort.
I am airaid we have a little bit;

Production

achieve

production.

106.5

tion

wheat, corn, rice, cotton, to¬

these

record output of eggs

accompanied

unions

Highest Since 1920

itself to Canadians in all walks November
of life.
Important as the price from

brains

tions called

C&sh income from farm market¬

clined

from

less

the

Nelson,

the; War

resources

City, the executive board of the
Congress of Industrial Organiza¬

$842,000,000 in De,and, while civilian pro¬
cember last year, the Bureau of
duction
expanded in response
Agricultural
Economics,
U.
S.
to the greater demand, it was
Department of Agriculture, re¬
increasingly
handicapped
by
ports.
Government payments in
material and labor shortages.
December totaled $83,000,000 com¬
Furthermore,
prices began
to
pared with $68,000,000 in Novem¬
rise quite rapidly in the United
ber and $70,000,000 in December
States and this naturally fos¬
iy40. Sales of several major farm
tered the upward movement in
products were larger than usual
Canada.
in December and prices averaged
The policy of establishing the
6% higher than in November. As
price and wage ceilings was a a result, the Bureau explained,
bold and courageous one and income from farm
marketings de¬

;

Hotel

1941 Farm Income

timate)

rise

increased

hysteria.We

and "pdrtfcu-

Donald

beware

likewise

beware

with

cooperate

must

j ft

•

"But

complacency," he warned, "and

Board, and volunteered its full

De¬

122.5

CIO Board Urges

from

The

581.

page

head

Higher Wage Demands
for

statement

annual

The

with

than usual decline in egg prices.

peace-time

result

Government,

larly

The index for poultry and

was

Government policy will

from

increased

132.0

"usual"
of
necessity play a major role in
the
process
of
readjustment
will

and

November

the

oifer

reiterated

board

CIO's

the

mals
eggs

Business

usual."

from

The

154.0.

;

readjustment cannot
by the old slogan of

"business

con¬

index of income from meat ani-

however,
be

the

f" rationing boards.

marketings and- rising
the seasonally adjusted

prices,

in¬
ings and Government payments
evitably results in higher prices in December amounted to
$1,230,and increasing cosls of living.
000,000
compared
with
$1,301,In
1941, the rate of spending
000,000 in November (revised es¬
for civilian purposes continued
to

from

removed

bank

McLeod said:

ity of

greater

post-war

meat

movement

•

establishment, of

Range
States
was
accompanied
by
relatively heavy slaughter, and
the increase in marketings
of
hogs was also much greater than

T economy.

Canada."

cattle

usual

nomic

the

general rationing policy and
for labor representation on all

in De¬

unusually

were.

called for

average

124.5%

heavy

feeder

figure

peace," Mr. McLeod said, adding
that, "it must be recognized that
part of the $1,000,000,000 increase
last
year
reflects
the upward
movement of prices, which gained
momentum
in
the
spring
and
ance

is almost $1,000,000,000

also

tinued

Feb. 4.

1924-29

large in December

produced and available in Canada

income

the

Marketings

animals

during
1941 was about $6,200,000,000, according to a preliminary estimate,
and is by far the largest in the history of Canada, J. A. McLeod,
President of the Bank of Nova Scotia, told shareholders at the annual
The

November

Thursday, February 12, 1942

duration
resolution

Not
there

only
was a

that, he added, but
possibility that women

might have to be registered next,
and
may

"perhaps ultimately children
have to help," all as a part- of

what

visualized

"budgeting" of the
the nation.
In further

vast

man power

•

reporting bis remarks,
"Herald

Coffee

Supplies Are

Adequate To Meet Demand
17,000,000 pounds of coffee
arrived in New York
Brazil and a further 121,000,-

Over

recently
from
000

on the way, or
pound for every
man,
woman
and child in the
United States, the statistician of
the New York Coffee and Sugar
Exchange announced on Jan. 28|
in answer to inquiries regarding!
coffee supplies.
Not only that but
stocks here are in excess of 500,000,000 pounds and further sup¬
plies are nearing shore from the

pounds

West

than

are

one

Indies,

and

South American

Central

and

coffee-producing

Tribune"

countries, other than Brazil, it was
'
'
account of Jan. 29 went on to say: stated.
the

New

York

•

.Volume

155

Number 4045

THE COMMERCIAL

•

Despite

Auction Sales
.

20
1

•

■I'-'-l'/j

Nashua
Boston

550

{par $100)

$300)

{par

Eastern

Butlers

nal

Chicago

Point

Butlers

Somerville

Co.,'common

Ry.

certificate

Smith

Somerville

Co.;

7,/a%

Boston

;

!___•

$88 lot

$6 lot

com.

(par

the

Athenaeum

$300)

(par

!_____

(par $1)

common

the

._Ji

—,

truth.

185

The

STOCKS

City National Bank,

Phila.,

Andrews

Construction

Andrews

common

Construction

Co.,

class

(no

common

100

Co., class A non-voting
Ninth Bank & Trust Co. tpar $10)

100

Germantown

Northern

Trust

Swartlimore

Trust

Co.

Bank

Inc.

$10!_____

(no

common

(no

Pa.,

$100)

not

delude

impact of

remind

ated

figure which indi¬
operated.
These
that they represent the total
time

•

;

•

Tom

Orders

Tons

problem, espe¬
cially to those of us with trus¬
teed

Percent of Activitt

Current

During
'

January
February

629,863

May

509.231

488,993

the

509,231

737,420

property.

August

659,722

649.031

576.529

September

642.879

630,524

578,402

M 568.264

554.417

530,459

October

839.272

831.991

November

640.188

649.021

743,637

760,775

1942—Month

■:

of—

January

■

668,230

528,698

V;-:

159.272

572.635

174,815

159,894

169,472

Aug.

158,403

Aug.

157,032

Sept.

147,086

Aug.

banks

Oct.

>->.591,414

589,770

583.716

578,402

582,287

100

575,627

168.256
159.337

164,374

167.440

165,795

574.991

J-JiU-J-

Nov.

168,146

568,161

100

Nov.

165.420

170.597

Nov.

156.394

Dec.

181.185

570,430

99
96

101

166.080

567.373

102

163.226 ?

553.389

101

535.556

101

116,138

124,258

147.419

140.263

523,119
y

Jan.

Ja n.

31.

—

161,713

orders

filled

stnelr.

from

527.514

101

525.088

102

10I-;

169 735

514 622

101

102

528,698

101

and

otherMtoms

made

ad(ustm*ntji of

npeessarv

principles of investment.

102

unfilled

time

short

ident

the

Says Stockton At ABA Annua! Trust Merence
The

war

it was

ways,

Trust

the

address

delivered
of

oft

the

before

American

the

Association

the

President and

Senior

(N.

ities

and

risk

Mr.

preceded it have
effect

vexing.

But

defense bond pur¬
chases, investment problems, war
taxation, and the effect of the war
on
private enterprise and prop¬
erty rights.
Mr. Stockton also
>said:
We
war

......
are

and

all

the

aware

social

the

upheaval

has been

have

trust

over

pro¬

trust

sacrifice.

private

that

pro-,

not

the ultimate

the

property

would

institution

could

sur¬

the

very

unsound

indeed
hollow and

are

our

Congressmen;

determined

part of

now

each

action

one

necessary.

able, sincere
who
have

any

necessary

know

beneficiaries

willing
to
pay
higher taxes.
They will
gladly reduce their peace-time
standard of living to help pay

for this

war.

At the

however,
pxpect

they have a
Government

State

and

with

its

As, yet

time,
right to

same

local,
Federal—to dispense

peace-time

there

has

—

luxuries.

been

little

power

its

are

successful

declared

that

the

The

been

pre¬

Government

the

over

Co.

Senator

would

"cut

Pacific

company's
in

from

Cable

cable

shreds

off

has

Hono¬

lulu," he said, and there "may
be"

Government intent to seize

the properties.

NY Chamber Urges
Renewed Effort To Get
More Federal Bureaus
Governor
Guardia

Lehman,

and

New

representatives in

Mayor
York

City's

Congress

were

urged by the Executive Commit¬
tee of the Chamber
of

the

State

fort"

of Commerce

New

make

induce

York

"renewed

ef¬

Federal

bureaus

which

jective

their offices

Congress

eliminating

essential

non¬

The ma¬
up in what
"Byrd Com¬

spending.
chinery has been set
is

known

mittee."
to

the

Our task

committee

said

important cen¬
of
commerce,
shipping,
transportation, finance and in¬

for the
during the World

War

1918,

with

the

President

the

same

wire and cable facili¬

power over

ties which he has
House

lodges

and

radio.

over

The

passed the bill on Dec. 19

and

Senate

Jan.

19.

The

approval

cies,

that

the

defense

and

sary

ident

than, six

deems

security,
during

months
the

pro¬

neces¬

national

the Pres¬
state
or

for not

and

war

interest

may,

threat
nation

termi¬

the

after

threat

war

(1)

Suspend

amend

the

rules and regulations applicable
to any or all facilities or sta¬
tions

for

within

communication

wire

the

jurisdiction of the
United States as prescribed by
the Commission; (2) cause the
closing of any facility or sta¬
tion

for

and

its

communication

wire

the

therefrom

removal

apparatus

the

upon

any

such

may

prescribe,

just compensation to the

ad¬

unex¬

facilities

brackets."

Boardman

the

senting
out

Spalding, Chair¬
Committee, in pre¬

the

man

resolutions

that

the

pointed
in co¬

Chamber,

operation with the Mayor and his
Business
several
to

Advisory Committee, for
months

secure

had

advantages

the

national

other

New

capital,

The

been

in effect,

these

that

end.

same

resolutions,

results

York

and
had

organizations

working to the
the

been trying
recognition of

greater

efforts

said
were

disappointing "in relation to the
advantages
which
New
City has to offer to these
Washington agencies and their
employees."
many

York

Gen. Hershey To Speak
At New York Luncheon
Brig.

Gen.

Lewis

Hershey,

National Director of the Selective

Service

System, will

before

Members' Council Lunch¬

speak

of the Commerce and

eon

sta¬
and
department

offers

and

available
rental

use or con¬

Government under
as

has

residential

different

Association of New York

trol of any such facility or
tion
and
its " apparatus,

equipment by

and

facilities

equipment;

and

(3) authorize the

and

celled

the

specifically

measure

vides

came

rental

feet

avail¬

vantages as a location for such
Government bureaus and agen¬

similar to the law passed
purposes

for

gener¬

square

office/ space

unequalled

same

desirable

able

GoM Wires & Gables

measure

representation

ally, has millions of
of

July,

the

ter

dustrial

The

that

largest and most

FDR Given Pcwer To

cable facilities.

New York.

adopted

"New York City as the nation's

citizens is

Resolutions

help them in this effort.

the

Astor

nounced

Hotel,

Jan.

20.

Industry
Feb. 5

here

was

His

an¬

subject

will be "Selective Service in War¬
time As It Affects Commerce and

Industry," and will include
cussion of the methods
cies

his

office

and

dis¬

poli¬

incident

owners.

total

The Senate before

in this country.
His address
will be followed by a question and

bill

Jan.

Taft

income—are

for

are being
crowded out of
Washington by the war to move

and
upon

executive

dedicated themselves to this ob¬

men

amendment

aged people all dependent

grants

amendment

Jan.

have many

regulation

ready and

As trustees

thousands

shall

But

broad

taking

welcome to

and

Positive and

this

confident,

be most

Senators

section

every

country,

of trust funds—women, children

heavy and
deepest con¬

question

vive.

policy,
won

willing to make

busi-i

the last 20 years has been able
to
escape
the
or

it.

disastrous victory.

been
our

war

fiscal

date of the values of which we
are custodians.
None of us who
has reflected on the events of

whether

that

cern

the

changes

problems arising in the adminis¬
tration
of - alien - property,
the
of

win -this

Con¬

The burdens of adminis¬

trative

have

handling

the

that a victorious proin a modern war costs

money—and lots of

f We realize, of

Trust

Bank &

found

figures

Vice-

which

„-S?ess.

gram

com¬

to comprehend these

As. citizens

cedures

war

Trust

Stockton

insurance,

raid

Federal budget,
course,

;

C.$>-t

the trust business, he
loss

York.

Officer of the Wachovia

the war upon
said, are the
of trained personnel,, prior¬
on
office
equipment,
air

Repercussions

Association,

23rd .annual,Mid-Winter

in, New

Trust

Winston-Salem,

Bankers

exceeding $59,is difficult for

year

astronomical
J

•

affecting the trust business in. at least eight different
asserted, on Feb. 3 by Richard G. Stockton, President of

ference

Co.

inmost of

Division

Pres¬

States

budget for the

000,000,000.

the

ago

United

his message to Congress recom¬
mended

;

fey Ways

war:

stated:

ing fiscal

War Affecting Trust Business In

assuring

by a will to win the war and our
willingness to pay any necessary
price for victory," Mr. Stockton

167,040

means

The

"in importance it is exceeded only

the prior
week
plus
orders
received, less production,
do
noij
_*ders at the close.
Compensation for delinquent rennets, orderi

the unfll'sd

equal
or

■:

■> V'•

•

166 095

;

181,070

Note—Unfilled

'.-

530.459

165,360

167,846

necessarily
for

162.493

•>

investments.

Commenting on "the fiscal pol¬
icy of the Government and its
corollary, taxes," which he said,

1942—Week Ended—
3.

mental

166.948

—

strict adherence to sound funda¬
&

149.874

protection
and
greatest
effi¬
ciency of capital during these
times, in my humble opinion, is

554,417

149 021

—

direction

much

he said,

vent

non-defense

"however

war,"

Taft's

trust

outstanding

550.383

164.875

and

matter

576 923

160.889

169.111

Dec.

568.264

159.860
165.397

145.098
__

Nov.

;

165,279

deposited

difficult
problems
facing
us
during this war period and the
post-war period as well, is the

576,529

163.915

11-

592,840
584.484

163,284

166,797

Oct.

narte

133.031

176,263

Oct.

Jan.

162,889

Sept. 27

Dec.

162,964
V

As trust men, one of the most

166,781

Sept. 13
Sept. 20

NOV.

587.498

Efforts

was

prosecution.

alien

reported
enemy
aliens

elimination

expenditures?
our

hate

Treasury.
The
President Roosevelt signed on
companies of
America are prepared to render Jan. 26 the legislation giving him
a
similar service during this broad war-time powers over the
Nation's telephone, telegraph and
present war.

„

Aug.

money

required
the

■

102

159.844

the

war

■

673,122

All

belonging

was

1941—Week Ended—

Aug.

last

administration

December

the

Government

communications

necessary

no\y exert every influence
turn this pressure towards!

•

expenditures, when
are
entirely
frank
with
ourselves, we must admit that
high pressure and politically
strong
groups
in
practically
every community in our coun¬
try should take their full share
Shall

L. Fly of
Communications

Regardless,
we

responsibility.

James
that

be
necessary
in areas where
the facilities are endangered.

for Federal

not

Commerce

Federal

of the

the
Commit¬
of

contemplated "at present."
But, he added, such action may

to put on
responsibility

the

was

Burton

(Dem., Mont.)

Chairman

seizure

we are prone

Congress all

passage

not

will."

assistance to the Government in

807,440

the

were

608,995

634.684

——

602,323

656.437

June

447,525

invest¬

„

trust institutions of the country
able to
render valuable

261,650

337,022

726,460

202,417

548.579

571,050

April

July

property

the two seaboards.

Cumulatlvi

1941—Month of—

March"

real

ments

Tons

insurance became

appropriation,
some
community will" to one
that
might
be
briefly
ex¬
pressed,
"If
our
community
doesn't get the Federal appro¬
priation, the fight for victory
While

for

Commission

other

war

immediate

sentiment

re¬

said he had been assured

the

building
which will

Federal

increase.

Air raid and

risk property

Remaining

efforts

burdensome.

Unfilled

Production

Received

af~

been

Priorities are already affect¬
ing office equipment necessary
to the conduct of our business,
and they will not become less

Period

war

insti¬

This

industrial

and

PRODUCTION, MILL ACTIVITY

OrAert

cre¬

problem will
become greater as our military

industry.
STATISTICAL REPORTS—ORDERS,

by
our

already

r. aye

industries.

The members of this Association
represent 83% of the total in¬
program includes a statement each week from each
member of the orders and
production, and also a

advanced to equal 100%, so

M«x.y of

our

by loss of personnel to
armed forces or to war

V> the

dustry, and its

are

May

war.

fected

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

figures

immune

are

accentuated

conditions:

paperboard industry.

the

of a few of
that have been

problems

We give herewith latest figures received
by us from the National

into

you

$10 lot

activity of the mill based

change the old widespread and
oft-expressed feeling that "If
our community
doesn't get the

lines

ourselves

175

par

other

some

from the

Weekly Statistics Gf Paperboard Industry

the

with

the

business, such as the automobile industry, rubber indus¬
try or metal industry.
But let

tutions

cates

been

$27 lot

par)

23A

par

not

has

that

_____________

Co.,

believing

415
Trust

effect

$30 lot

__________

$100

(par

National

Gillinder Property,

(par

pari__

immediate
business

10'/8

•

ef¬

the trust busi¬

local

that

owners.

Chairman

Interstate

tee.

expenditures

communities in

our

said

would

private

fight

requisitioned

any

ever

Wheeler

Second, to furnish leadership
in

$ per Share

$50)

(par

evident
On

non-essential

The

led

be abolished for the duration.

vindicate

immediate

great

$20 lot

the

war

trust

& -Lofland, Philadelphia on Wednesday,

Feb. 4. >U'-U-

based

all

made

Mr. Stockton asserted:

ness,

$20,046.96

Transacted by Barnes

will

fects of the

..."

needed.

are

"doubted"

First, to demand of our Gov¬
ernment
representatives
that

management.

judgment

public

Turning

IV2,

.,__!J__-J 4

Credit Union of Hungarian Mutual Credit Association and Futura
Cooperative Societies Trading Co., Ltd.__

in¬

35c

_____

liberty
the

spending by the Gov¬

restrictions

ability to
adapt, but it is important to
U remember
that
adaptation is
not a synonym for surrender.

3*/e

final

survival

_11_

;___

$100)

tire

and

governmental

And

;•

$per8hare

Yuba^ Consolidated Gold Fields, Inc. (par $U-_

interest;

J_.i___.U-

bureaucracy
imposes.
In the long run, astute, private
enterprise can surpass any form

$2',4 lot

$100)________

(par

preferred

Columbia .Oil & Gasoline Corp.,

25.

certain

economic

which

Termi¬

and

efficiencies

;

STOCKS

Co.,

they

non¬

turned

this

Trust

curtail

facilities

are

*■;.

by R. L. Day^& Co.,. Boston-on Wednesday, Feb. 4.

____

Point'Associates, trustees certificate of beneficial- Int.,

Fibre Co., common_>____-__~._v__
Keyes Fibre Co., class A___

beneficial

Keyes

$100)

(par

Ry. Co., preferred B (par $100);
preferred (par $100)_1________
trustees

effort

As citizens, and especially as
trust men, I think we have two
definite obligations:

people nurcentury and a half of

political

137

_________

St.

6r,v

Associates,

>■

Shares
3

Northwestern

Massachusetts

Storage Co.,

Transacted

•

effective
essential
ernment.

pessimism.

tured in

$ per Share

Mining

foreboaings,

V;.

Corp.
(par
10 cents);
5 Jasmine Petroleum Co.
{par
$50)) 40 Magnolia Park Investment Co.
(par
$25);
100 Middleton
Mines, Inc. (par $1).;..15 Pacific Development Corp.; 1 Manchester
Country Club, N. H. (par $100); 525 General Electronics Corp. {par

STOCKS

■

Nashua, N.. H.

Athenaeum

Hermes

$1);
,

;:y;-

.■

Trust Co.,

these

679

this is not the time to give way

Transacted by R. L. Day .& Co., Boston on
Wednesday, Jan. 27.
.Shares

& FINANCIAL CHRONICLE

adopting the
rejected

Sen.

Robert

answer

(Reo., Ohio), to limit seizure

lective

communication

answer

powers

erties

valued

less;

pron-

than

$10,in¬
vasion.
In reporting +Ms United
Press accounts from Washington
000.000

Jan.

registration

except

times

said:

Senator

Congress
adjourn
grants

24,000,000

men

period

Service

specific

which

the

Director

questions

ously submitted to him by
bers of the Association.

"might
and

declared

just

home"

that

well
if it

arbitrary powers before

previ¬
mem¬

Presiding

at the luncheon will be Arthur A.

Ballantine, Chairman of the Asso¬
ciation's Members' Council.

Taft

Se¬
will

Tick¬

ets to the
open

meeting, whiich will be
to the public, may be pur¬

chased at the
at

233

Association's office

Broadway.

THE COMMERCIAL & FINANCIAL CHRONICLE

680

NYSE Odd-Lot
The

Securities

Trading

and

Exchange

Commission made public
6

Feb.
for the week ended

summary

Jan.

Labor Bureau's Wholesale Price Index

Resumed

Upward Trend for Week Ended Jan. 31
Statistics, U. S. Department of Labor an¬
commodity prices in wholesale markets

The Bureau of Labor

31, 1942, of complete figures
showing
the
volume
of
stock

nounced

resumed

their upward movement

transactions

following

count

|for the odd-lot

all

odd-lot

ac¬
and

dealers

specialists who handle odd lots
the

New

York

Stock

Exchange
continuing a series of current fig¬
ures being published by the Com¬
mission.

domestic

4 weeks the index has risen 1.7%
corresponding week of 1941.
<
the past

The

specialists,

STOCK

ODD-LOT

DEALERS

ODD-LOT

SPECIALISTS

AND

NEW

THE

THB

FOR

ACCOUNT

STOCK

YORK

EXCHANGE

Total

Week. Ended Jan. 31—
Odd-lot

Sales

for week

•

Number of

Dollar

13,145

—

shares—-4

348,598

—

12,773,000

value

Odd-lot

Purchases

(Customers' Sales)
279

salesc

Customers'

other

total sales..

Number

12,314
12,593

sales.

short

Customers'

other

Customers'

total

8,205

—

309,047

salesa—

sales

317,252

Dollar value

Round-lot Sales

10,234,698

by Dealers—

Short sales,*.;:

—

Other salesb

—74,700

Sales

41%

liquidate
a

102,020

"short

exempt" are re¬
b Sales to offset
orders,
and
sales
to

long position which is less than
round lot are reported with "other sales."
a

Cotton Textile

Prices

the

cotton-tex¬

industry in 1941 set a new
record
figure
of
11,898,000,000

according to the
of W. Ray Bell,

yards,

annual

report

President

the

Association

Cotton Textile Merchants of New

York,

delivered

Feb.

The

association's
the

its

adjust

requirements,

war

reviewed

report

activities

industry

members

aiding

itself

and

Dribben, of Cone Export & Com¬
mission Co., was re-elected to the
board of directors.
were

wholesale

declined

Three

elected:

new

John

di¬
C.

than

27%

for

serve

three-year

annual

attention

report

Mr.

Bell

the

fact

that

Association of Cotton Textile

Merchants
throes
and

advance

the

"was,
the

stated

First

that

born

World

War,"

initial

its

the

surplus
tional

post-war distribution of
textiles."
Stressing na¬
responsibilty as a basic
the

organization, as
constitution, the
report called for production of
cotton-textile mills "shaped to fit
the
specialized
needs
of
the
armed forces."
"It is vital, both
concern

set

for

forth

its

Worth

Office

With

Street and

the

cotton-

large," Mr.
Bell
stated, "that no effort of
a
voluntary
nature
be
spared
in
completely
satisfying
these
industry

the

war

year,

cotton

raw

oil

the

report

states

that

was

yards more than the
previous record (1940) and 3,500,000,000 square yards above
square

average

five

annual production for the

years

ending with 1939.

17.72%

was

Total

Number

1. Reports

since

Exchange

the

from

the

Jan.

of total trading

157,970
of

available

follows:

shares,

481,775

Reports Received—

oth?r

initiated

actions
'•

showing

Reports

for

pine

yellow

finish,

boards,

lath

the

following

the

for

the

the New York Stock
members.

Thes*

N. Y. Curb

Exchange
750

182

■

trans¬
190

other

floor—

196

transactions

trans¬

the

581

67
567

Note—On the New York Curb Exchange, odd-lot transactions are handled solely
by
jpeciallsts in the stocks in which they are registered and the round-lot transactions of

ipecialists resulting from
cialists'

other

all

round-lot

but

such odd-lot transactions
trades.

fraction

the

odd-lot

the

not

segregated

Stock

Exchange,

are

York

N»w

transactions

effected

are

from

the

spe¬

other

dealers

engaged
solely in the odd-lot business.
As a result, the round-lot transactions of specialists In
itocks in which they are registered are not directly comparable on the two
exchanges.
The
ber

number

reports

reports In the various classifications may total more than the num¬
because a single report may carry entries In more than on*

received

classification.
Total Round-Lot

Stock

Sales

the

Transactions

for

Week

New

York Stock

Account

Ended Jan.

Exchange and Round-Lot

Members*

24,

(Shares)

1942

Total
For Week

Per Cent

A. Total Round-Lot Sales
Short

sales

Other

sales

count

Odd-Lot
and

112,740

—T.

2,676,430

——

sales

2,789,170
for

the

Ac¬

Except

for

the

Transactions

Round-Lot

Members,

Accounts of Odd-Lot Dealers

Specialists

Transactions of

which

they

specialists in stocks
registered

are

purchases

Short

sales

232,960

sales

Other

41,130
b

187,940

sales

229,070

nmmmm

Other transactions Initiated

8.28

the

floor
Total

purchases

Short

and for

sales

122,990

sales

Other

timbers

soap

data

1,045

the floor—«

off

Reports showing

and

16.39%

during

Okla¬

0.1%

—

showing

Reports

Total

advance

ended

of 3,152,210

shares;

N. Y. Stock.

in the fuel and lighting

This

week

24:

actions Initiated on

types of lumber and for lin¬

some

resulted

stone

15.70%

was

shares.

of total trading of 474,745 shares.

made

specialists

Total

gasoline

members

Exchange, member trading during

amounted

showing transactions

Total

prices to the highest level

Exchange

2.2%.

rose

decline of 0.1%

crushed

Prices

1923.

26,200

—

110,210

declined.

Higher prices

;

reported for fatty acids, for

were

The

Total

following tables

(1926

Total

1-24

1-31
1942

79,200

—

86,400

sales

2.77

Total

purchases'

Short

sales

74,530

sales

Other

424,340
377,350

1942 from—

1-17

1-3

2-1

1-24

1942

1941

1942

94.8

80.6

+ 0.4

+ 1.7

Total sales

2-1

15.70

451,880

1941

95.6

1942

7.200
b

4. Total

Percentage changes to

Commodity Groups—

sales

68.390

sales

Other

100)
Jan. 31 ,

4.65

■>> v':-.

purchases

Short

groups

136,410
7

floor

show (1) index numbers for the prin¬
commodities for the past 3 weeks, for Jan. 3,
1942 and for Feb. 1, 1941 and the percentage changes from a
week ago, a month ago, and a year ago (2) percentage changes in
subgroup indexes from Jan. 24 to Jan. 31, 1942.
cipal

sales

I. Other transactions initiated off the

fertilizer materials.

fertilizers and certain

mixed

+ 19.0

1-3

■

—-

■

•

95.9

AH Commodities
Farm

95.5

101.3

100.3

100.8

96.9

71.7

1.0

Hides and leather

93.6

94.1

91.9

73.7

+ 0.3

115.6

115.7

102.6

0.0

products

93.6

92.7

92.6

41.3

+ 2.2

115.7

+ 4.5

93.9
115.7

products

Foods

27.4

91.6

75.2

+ 1.0

+ 2.2

78.8

78.9

79.0

72.6

—0.1

—0.3

103.5

103.4

97.8

0.0

+ 0.2

109.1

108.3

99.5

+ 0.1

+ 1.2

+ 10.2

96.7

96.5

95.6

95.1

78.8

1.7

+ 22.7

102.9

102.7

102.5

90.4

+ 0.2

+ 0.4

88.4

88.1

87.9

87.5

95.5

95.6

93.4

92.0

91.8

91.4

90.3

Manufactured products
All commodities other than farm

96.4

96.3

96.5

94.7

94.5

0.2

feed

76.8

+ 0.3

+ 1.0

Other

farm

Cotton

94.7

24,

94.5

1942

+ 0.9

3.2

+ 29.6

81.3

+ 0.2

+ 1.9

95.5

83.8

+ 0.1

+ 0.9

+ 15.0

93.7,

82.6

+ 0.2

+ 1.1

94.4

products

JAN.

84.5

INDEXES

13.2

Total

Round-Lot

31,

+ 0.6

+ 0.2

miscellaneous
textile

Lumber

1.3

Paint

products

1.2

Other

Mixed

fertilizers

building

Livestock

0.4

Hosiery

63,420

11.78

67,565

10,675

—

sales

2.09

12,075

■

Total

purchases

Short

sales

12,660

sales

Other

0.1

poultry.

1,400
b

Other transactions initiated off the
floor

0.2

8,050

sales

900

10,725

sales

11,625

purchases

66.705

0.1

and

Total

0.1

underwear

Total

o.5

Petroleum

skins

and

sales

6,445

sales

Other

Hides

2.52

Total

Short

1.1

heating

4,145

sales

Total
2.

Decreases

Plumbing and

45,995

purchases

Other

0.2

materials

0.1

stock*

sales

Short

0.2

' Chemicals

Meats

transactions initiated on the

Total

0.3

0.2

Shoes

0.3

materials

products

Furnishings

o.4

vegetables

—_

paint materials

o.7
,

Ac¬

sales

Other

0.2

the

purchases
sales

Total

Other

foods

for

floor

1.4

;

iUok

Par Cent a

481.775

Transactions

FROM

0.1

Other

Cereal

Fertilizer

and

474,980

sales

Short

+ 12.1

1942

1.8

—

and

Exohang*

(Shares)

6,795

1. Transactions of specialists in
in which they are registered

Other

Fruits

Curb

1942

of Members

count

+ 14.6

Furniture

1.8

Grains

sales

Other

94.1

2.2

—

goods

Clothing

24.

+ 15.1

74.4

CHANGES IN SUBGROUP

—.

York

of Members*

For Week

sales

Other

Increases
Cattle

New

Total
Short

•

Total

—

JAN.

the

Account

i. Total Round-Lot Sales

\-.y •.

products

for

+ 24.5

All commodities other than farm
_

Sales

Week Ended Jan.

+ 13.8

96.4

PERCENTAGE

Stock

Transactions

5.9

109.5

Semimanufactured articles

products and foods-—

Round-Lot

8.5

103.6

109.6

Metals and metal

Total

+ 12.8

103.6

products
lighting materials
products——.
Building materials—
Chemicals and allied products—

Fuel and

84,820

0.2

—

0.2

products

Total

sales

—

Odd-Lot Transactions for the

91,265

■;

16.39

Account

of Specialists

Customers'

The

Feb.
sales

Securities

the

New

Exchange and the
Jan.

York

made

total

all

members

of
a

Short

these figures,

the

these

exchanges

for

the

week

ended

series of current figures being published
sales

are

shown

separately from

Commission explained.

——

24,378

purchases

24,378

sales

17,158

round-lot stock

transactions

J
e

Total

•

stock

sales

Total

public

Exchange and the New York Curb
round-lot

sales

other

The

term

other

"members"

Includes all

regular and associate Exchange members, their

Including special partners.
transactions as per cen* of^
ncrcpiitftffGS.
the tot&l
ni6nib6rs

firm* and their partners,
*

twice

the

members®

thpRA

,nb Round-lot
are

members'

twice total yf.

vni,1Tt1A

T»

transactions is oomparad with
total round-lot volume on the Exchange lor the reason that the total of
transactions includes both purchases and sales, while the Exchange volum*

*aij»fiiaHnfr

24, 1942, continuing
in

Commission

daily volume

Stock

volume

by the Commission.
sales

Exchange

figures showing the

account

and

short

Customers'

Trading On New York Exchanges

all

sumption reached 10,575,000 bales,
11,898,000,000 square yards of
cloth were produced—2,300,000,-

17.60%

2,789,170

Jspective

building material prices to the highest point since June,

average

past

and

during

Curb

that

The data published are basedjipon_weekly reports filed with

defense

the

Jan.

reports are classified

index.

group

and

industry's

effort

account

which amount

Exchange

trading

York

Commission

ended

clothing also advanced.

Slightly higher prices for

.previous records for spinning ac¬
tivity were broken, cotton con¬

000

week

Citing

the

preceding week trading for the account of Curb members of 168,-

Aver¬

wants."

and

ended
volume

band,

ago.

year

early February, 1941 level.

weakening prices for natural

•'

textile

the

1,109,540 shares,

On the New

total

under

woolen,iand worsted

effec¬

ment and

week

1929

textiles

"was thoroughly tested
problems of war procure¬

the

for

876,220 shares,

member

the

again permitted increases in prices for most
the sliding scale ceiling imposed by the
of Price Administration.
Prices for most types of men's

Spring of

cotton

tiveness
in

Raw materials

his

called
the

the

wholesale prices for cattle feed

All

terms.
In

lower for

were

markets

above

Housefurnishing goods
Miscellaneous commodities

will

Quotations

than 1%
with lower prices reported for
pork, veal, mutton and dressed poultry.
Food prices at wholesale have risen over 2% in the past 4 weeks and

Textile

Gerrish

Exchange

McCampbell & Co.;
Milliken, of Deerihg
Milliken-• & Co., and Robert D.
Williams, of Callaway Mills, Inc.

Hughes,

vegetables.

steers, and for oranges.
In the past
prices have risen 4V2% and are more than

lowed by the election of directors
for
the
coming year.
Saul F.

rectors

index., Higher prices
poultry, eggs, seeds and

live

and

fol¬

was

totaled

the

group

hogs,

cured and fresh beef and

seed

square

textile

for
nearly all foods, except
Cereal products were up 1.2% because
higher prices for flour and certain bakery products.
Sharp
increases in prices for bananas and lemons brought the average
for fruits and vegetables up 0.4% during the week.
Prices were
also higher for tea and vinegar, for lard, tallow and butter and
for most vegetable oils.
Average prices for meats, on the con¬

materials

tile

shares.

meats, continued to rise.

Production Set Record
Production

products

cows,

and

product

homa fields there

1941

for

calves

rye,

farm

The

odd-lot

farm

above the corresponding week of

ported with "other sales."
customers'

the

reported

and

age

Shares..

marked

fresh fruits

most

Dealers—
Number

also

were

74,710

Round-lot Purchases by
f

Jan.

sharp advance in prices for cotton, and somewhat smaller
for barley, corn and wheat, were principal factors in

advance

the

are

sales

with

compares

trary,

Number of Shares:

Total

and

Stock

transactions

The

Customers'

total

level.

month

short sales—

Customers'

transactions)

210 shares

housefurnishing goods, 0.2%; and building materials, 0.1%. Aver¬
age wholesale
prices for fuel and lighting materials declined
slightly, while the indexes for hides and leather products and
metals and metal products remained unchanged at last week's

oats

Number of Orders:
Customers'

lot

said:

products

the

for

Dealers—
;

Trading

(except odd-lot dealers) during the week ended Jan. 24 (in round-

increases

•

farm

the

above the

products
groups rose 1% during the week.
Foods and miscellaneous com¬
modities
advanced
0.3%;
chemicals
and allied
products
and

by Dealers:

of orders

for

and it is 19%

further

announcement

indexes

The

(Customers' Purchases) 1
Number

Bureau's

The

given below:

are

TRANSACTIONS

during the last week of January
the slight reaction of the previous week, as prices for
agricultural commodities again advanced.
The Bureau's

comprehensive index of nearly 900 price series rose 0.4% to 95.9%
of the 1926 average, the highest level since September, 1929.
In

figures, which are
based upon reports filed with the
Commission by the odd-lot dealers
and

that

Feb.

Thursday, February 12, 1942

short sales which are

Included with "other

_sales."

exempted from restriction by the Commission rul**

.Volume 155

681

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4045

Total Load*

Whole^krs*tl941{ Sales

Revenue

Freight Gar Loadings During Week
Ended Jan. 31,1842 Amounted To 815,567 Cars

Inventories, Credits Rise
Over Preceding Year in 1941

31%
to

1940, according
by J. C.

over

815,567

cars

Atl.

Feb.

According

Dept.

30 this

release of Jan.

cars

The

Atlantic

contrasts

with

sharply

freight for the week of Jan. 31 decreased

revenue

958

786

698

2,116

1,680

784

676

476

1,081

1,146

11,484

9,647

7,993

6,646

4.605

5,263

3,509

4,087

3,719

400

449

369

1,599

335

294

Ala

Georgia
&

Carolina

Western

Clinchfield
Columbus

Loading of

344

12.916

R.R.

Line

Coast

Durham

increase

1941

1,695

P.-W.

Charleston

24.0%.

Connections

413

Birmingham A Coast

Central

101,213 cars or 14.2% and above the same week in 1940 was 157,737

Capt.

Commerce

Received from

1942

Tennessee A Northern

Atlanta,

the Association of American Railroads announced on
increase above the corresponding week in 1941 was

announcement

District-

Southern

Alabama,

Loading of revenue freight for the week ended Jan. 31, totaled

advanced

wholesalers

Sales

Total Revenue

Freight Loaded

Railroads

Greenville

1941

1942

'240

;C>

33i"

202

1,732

1,665

1,461

2,923

2,821

219

308

•

322

194

184

145

999

597

1,344

955

927

1,192

1,148

Southern

1940

Florida East Coast

the

gain

1939

over

1939

the

The

1938.

over

started

with

out

for 1940
gain in

reported

and

year

had

substantial

margin over 1940, up One-fifth at
at the end of the first quarter.
A. widening

spread brought the
margin of gain up to one-fourth
by the end of June. In the third
quarter of 1941, sales spurted up¬

ward, bringing the record to 30%
for the first 9 months.

maintained

the

that the year

31,%

final

above 1940,

This

was
,

•Industrial and hard-goods lines

registered

the

gains.'

stronger

Wholesalers of industrial supplies
led all other trades with a 66%

margin

1940

over

followed

They
62%;

sales.

metals,
electrical
goods, 60%; and ma¬
chinery, equipment, and supplies
(except
electrical),
59%.
Four

were

other trades had advances of

over

40%, while 9 additional registered
gains
over
1940
of
30-39%.
Smaller margins over 1940 were
recorded by food trades, ranging
upward from the 12% figure for
dairy and poultry products.
The
est

year

terms

about-6%

over

the stocks on

ing which inventories have gained
over the same month of the pre¬
vious
of

During the month
sales gained
an
-equal to the inventory

year*

December,

amount

gain" with the result - that the
stock-sales.ratio'remainedatl48
1940,- and
1941.
This is in contrast to earlier
months when sales were gaining

for

both

December,

rapidly ? than
inventories,
and the stock-sales ratio was fall¬

receiv¬
able were more favorable in De¬
cember
than .during
the same
month of last year, and increased
(Collections on accounts

seasonally from November, 1911.
Collections equaled 84%. of ac¬
receivable

counts

Dec.

compared
wtihcollection per¬
centages of 76 for December, 1940,
and 75 for November, 1941.
Ac¬
counts
receivable
were
23%

1, 1941, than at
the same date m 1940, and 5%
below Nov. 1, 1941.
Dec.

greater on

nounced on
a

lend-lease

Salvador.
the

agreement with
official details

revealed but, ac¬
New York "Times",
hemispheric defense

pact were

cording to
it covers both
and

is
provide for expendi¬

arrangements

trade

understood to

and

This

approximately $1,100,000.

series which
been
recently concluded
various Latin-American

pact is one of a

have

with

countries.

3,188

1,167

850

1,309

1,190

1,543

9,009

5.795

7,495

6,345

23,419

19,439

21,352

16,641

496

366

833

682

141

151

884

732

112,014

100,729

101,776

81,989

14,527

14,742

11,683

128

Western

18,471

Western

Missabe

South

Dodge,

1,492

333

District—

Great

Joliet

1,203

8,697

366

10,625':

616

North

394

400

6,696
r

:2,376

2,297

3,684

2.909

19,849

19,132

9,922

8,742

4,583

4,067

3,784

4,582

3,734

1,129

908

965

407

790

707

567

584

467

10,260

Iron

Shore

9,826

8,330

10,449

8,553

Range

Atlantic.

Eastern

Des

15,320

2,925

23,258

173

•467

417

329

145

143

12,170

Moines &

9,434

8,608

4,486

2,985

616

522

798

698

South

Northern—
„

542-

341

252

247

2,675

1,542

1,570

2,506

2.073

5,984

4,911

5,004

3,700

2,822

10,665

9,236

8,410

4,739

3,688

102

303

204

2,434

1,550

1,325

2,680

1,783

96,867

81,019

75,821

63,780

50,714

22,665

17,992

17,809

9,873

7,206

3,420

2,983

2,719

3.532

2,519

565

460

421

114

101

Chicago, Burlington & Quincy..

1942

v.'.;

Week

18,427

15,107

15,115

10,977

8,638

Illinois Midland
Chicago, Rock Island & Pacific.

3,066

2,587

2,514

847

824

12,724

10,560

10,265

12.073

9,691

2,901

2,991

2,790

3,297

2,966

780

812

879

1,575

1.508

3,260

2,878

2,883

4,367

2,712

749

669

1,045

1,194

863

984

1,063

922

1,960

1,682

2,028

1,657

1,571

...

1,060

775

.'V 939

441

1,906

1,870

Northern

Pacific

—

«.

Spokane International

Spokane,

Portland & Seattle

Total.

Central
Atch.

■

January

10-———

Week

January

Week

January

592,925

711,635

668,241

650,187

Fort

714,354

657,830

Illinois

3,454,409

3,215,565

815,567

Grande

Rio

Worth

Denver

The following table is a summary of the freight carloadings

separate railroads and systems for the week ended Jan. 31,

for the

During this period

1942.

Pacific

109 roads showed increases when com¬

Toledo,

Peoria

Utah

•

pared with the corresponding
1'
''
i,

*»

■

•

week last year.
i\"
■'

„

»•/'/". A/.s.

•'

117

489

27,114

22,955

20,151

9.533

5,995

304

318

359

658

1,263

16,050

13,664

Western

400

8.04T

12,988

12,244

726

412

486

1,926

1,548

1,176

3,255

1,697

121,701

System

101,742

"76,157

56,587

—

Pacific...—

Western

396

146

485

.21

(Pacific)

Pacific

Union

1,747

883

Union.....

Pekin

Southern

584

Pacific

Western

Peoria

...

Northern

Nevada
North

City

Terminal

Missouri-Illinois

V_—-

Total

Western-

Lake

Salt

Denver

Southern

Denver

710,752

Colorado

646,382

——

—

Chicago A Eastern Illinois

703,497

24—__——

Week

614,171.

Fe System..

Alton

Bingham A Garfield

1940

1941

676,534

District—

Western

Top. & Santa

Chicago

737,172

3__

January

'
-

REVENUE: FREIOHT

Total——

LOADED AND RECEIVED PROM CONNECTIONS

96,801;

(NUMBER OF CARS)—WEEK ENDED JANUARY 31
Total Loads

Total Revenue
't"

District—

Barters
.

inn

r«v: •*:" •-■.**

•

2.114

1,884

8,924

7,860

7,626

1,470

Chicago, Indianapolis A Louisville
Central' Indiana^..A-—•

1,307

: 2,230

.2,213

11,223

8,710

9,373

-8,961

233

2,890

377

297

14,548

13,612
5,494
144

•148.

1,634

1,601

9,232

1,864
3,828

15,920

14,081

8,961

8,794

3,163

2,286

v
,

1,487

9,496

117

1.824
4,454

4,653

207

7,418

;

154
s

11,754

5,289

A Hudson River
Lehigh A New England—....
Lehigh Valley

Lehigh

9,919

233

.3,108

301

(Western......—....

Trunk

4.957

287

trie

Brand

2,194
.

6,748

2,818

Ironton

Shore Line..

A Toledo

Detroit

1,297

9,057

Westein_ __

Lackawanna A
Mackinac—

Toledo

2,448

1.184

—

Delaware & Hudson—\
A

1,581

1246
12,228

5,927

Central Vermont..:.—

Jetroit

1,466

213

13,563

1,461

7,945

3,523

1.671
9,900

8,406

International-Great

3,511

3,496

3,137

Vionongahela

6,201

4,836

7,217

44Q

tfontour.-.—'

2,093

1,883

1,911

v'~," 32

44,805

39,936

51,323

12,708

10,901

9,641

1,023

1,082

1.060

2,425

6,501

5,381

5,193

14,812

435

8,287

7,923

6,148

6,128

584

509

534

443

393

442

330

262

923

774

1,101

2,186

2,009

195

2,332

2,481

2,004

408

SI*,

Valley

Missouri

St.

Louis

Texas

Wichita

;

1,814

737

;T 297-

133

5,143

4,164
14,834

973

233

476

332

3,903

4,700

.2,719

14,263

13,672

10,232

...

256

118

7,696

7,280

7,028

5,218

2,735

2,247

4.639

2.779

8,226

A N.

4,020

118
37

65,363

50,873

;

3,567

"9,116
39

133

120

•

6,477

6,874

6,730

;
...

Southern.

Weatherford M. W.

2,046

3,191

Orleans

New

1,203
'**

139
—

Pacific
Falls

1,040

>2,481

9,442

Southwestern

Texas

Francisco

Louis-San

St.

137

A Pacific——

Acme

.1j 2,466
1,160

17,301

Lines

Pacific

Missouri

2,336

412

740

1,672,

.196

Arkansas

Missouri-Kansas-Texas

Quanah

•<:

329

Madison..

Midland

1,601

2,631

3,335

5,370

4,398
57

323

12,560

575

167

245

2,789
>

2,009

Chicago A St. Louis—
Y., Susquehanna & Western
Pittsburgh A Lake Erie—
?ere
Marquette

373

3,201

—

Arkansas

Litchfield

238

3,313

>1,729

2,622

44,531

H. A Hartford
Ontario & Western

,2,900

48,637

152

130

v.,

•1.594

City

Louisiana

3,110

4alne Central.

Northern.,

Oklahoma & Gulf
Southern

Kansas,
Kansas

189

5,335

2,194

Lines

Coast

Gulf

1,478

1,618

Island

Burlington-Rock

1941

1942

601

1,884

Action .A. M*lne__'—

Detroit,

Connections

1940

570

Arbor—

Sanger-•& - Aroostook——...

Delaware,

1941

.-Southwestern District—

Received from

Freight Loaded
1942
668

New

York,

Lines

Central

York

Y„ N.
Y.,

Pittsburgh A Shawmut
Pittsburgh, Shawmut & North
Pittsburgh A West Virginia

1,518

Lake Erie.—-.

Vheeling

7,521

6,483

5,898

6,809

6,311

553

529

584

'J 1,147

965

5,603

5,600

12,050

10.397

4,101

3,467

4,283

3.851

Bank Debits Up

172,850

162,024

149,368

212,770

183,276

15% From Last Year

ended Feb. 4,

week

the

reported for the corresponding period a year ago.
At
City there was an increase of 11% compared

total

New York

corresponding period a year ago, and at the other report¬

with the

SUMMARY

j Allegheny District—

Lake

Bessemer

401

529

728
...

1.090

1,058

39,499

33,840

30,015

23,302

18,968

3,141

Erie

2,800

2,284

1,458
14

6,827

6,405

17,315

12,919

591

544

314

280

171

181

923

661

546

3,371

1,754

1.235

1,064

? 81,744

—
-

Seashore
System

Lines...—--

-53
,

2,656

—.

*—■

RESERVE

millions of

DISTRICTS

dollars)

Week Ended
Feb. 4,

13 Weeks ended
Feb. 4,

661

552

8,665

7,384

4,537

4,195

58,565

52,630

610

524

8,108

6,775

829

675

10,959

9,035

440

York

——-

1942

Feb. 5,

1941

378

5,945

4,863

Boston

New

Feb. 5,

1942

Federal Reserve District—

Philadelphia
Cleveland

•

;

—

Richmond

1.523

2,011

44,869

Atlanta

19,783

1941

61,600

57,142

15,886

13.452

24,887

20,849 k

19.703

16.700

3,692

3.317

4.102

3,525

3,427

9,600

.138,863

326

5>030

4.010

22,429

18,431

8,056

157,978

1,456

392

Chicago

69,667

>16,643 >,

180,825

Pennsylvania
■leading Co

of 22%.

143

Llgonier
Valley
Long
Island
Penn-Reading

1.673

314

Pennsylvania—-—-

1.926

700

303

8,027

of New Jersey..

Cumberland

291

1,897

Indiana

(In

•

FEDERAL

1,887

;

361

Gauley—...

39,962

reported by banks in

ing centers there was an increase

tkron, Canton A Youngstown
Baltimore A Ohio

58,443

leading centers for the
aggregated $11,380,000,000. Total debits during
the 13 weeks ended Feb. 4 amounted to $148,534,000,000, or 18% above
debits

Bank

banks

Total.

48,814

revised.

1,611

6,484

4,840

...

—-—

Wabash

—

Note—Previous year's figures

13 919

16,972

362 ■■

Total

270

6.0S4

Jutland

1,747 ~

Western

(Pittsburgh)
Maryland—
„

Total.

143,995

370

292

4,898

3,873

Minneapolis

221

160

2,811

2,154

Kansas

Union

340

274

4,711

3,719

288

244

4,105

3,176

947

781

12,307

10,018

11,380

9,859

148,534

126,068

4,116

3,850

53,340

48,250

6,286

5,190

82,!l83

67,361

978

819

13,010

10.458

St.

Chesapeake
Norfolk

City

Dallas

Francisco

Ohio

22,481

4,125

23,600

10,517

10.115

21,674

24,581
21,209

19,455

'6.323

5 808

4,549

4,379

1,924

1,562

Total,

Total

49,915

New

274

48.704

47,434

18,764

reporting

York

140

Other

133

Virginian

—

District—

Western

Louis

115,222
San

Pocahontas

ture

3,809

25,255

Bay & Western
Lake Superior A Xshpemlng.—
Minneapolis & St. Louis..
Minn., St. Paul A S. S. M

ing weeks in 1941 and 1940.

"Jentral R.R.

El
of

2,534

514

Green

reported increases compared with the correspond¬

All districts

Cornwall

of State Hull an¬
Feb. 2 the signing of

381

3,011

128,046

Duluth,

amounted to 14,529 cars, an increase of 344 cars
above the preceding week and an increase of 710 cars above the
corresponding week in 1941.

Cambria

Secretary

638

Southbound

Duluth,

3uffalo Creek &

Aid For El Salvador

777

119

;

Coke loading

few

ing.

155

151

11,121

Miiw., St. P. A Pac
Chicago, St. Paul, Minn. & Omaha"*.,

amounted to 13,342 cars a decrease of 761 cars
below the preceding week but an increase of 894 cars above the
corresponding week in 1941.
Ore

153
'

476
:

Chicago,

Ft.

2,854
12,210

,8,955

Central

Northwestern

Great

3,797

15,248

1,316

Total.

Elgin,

2,832
23,893

3,726

System

increase of

products loading totaled 48,764 cars, an increase of 1,421 cars above the preceding week, and an increase of 9,230 cars
above the corresponding week in 1941.

were
hand

31, 1940. y December :
consecutive -month dur¬

29th

the

and

693

22,231

168

Line

Winston-Salem

Forest

year:

Dec.

week,

Air

Tennessee

11,517 cars, a decrease of 810
cars below the preceding week, but an increase of 1,106 cars above
the corresponding week in 1941.
In the Western Districts alone,
loading of live stock for the week of Jan. 31 totaled 8,479 cars
a decrease of 697 cars below the preceding week, but an increase
of 819 cars above the corresponding week in 1941.

earlier.
Each month
during 1941,. this margin "of gain
over
1940 increased, until how
inventories are 29% greater than
one

Seaboard

1,799
:

22.323

Potomac

3,559 "

772

23.616

218

Southern

the preceding

above

Fred.

107

2,537

29,714

Northern

Richmond

Live stock loading amounted to

At the beginning

i6fet^:^^^iiventorles ••

Piedmont

Chicago

based

of dollars,

cost value-

cars

Southern

Chicago

Inventories increased during the

Norfolk

ing week in 1941.

of
non¬
durable consumers goods felt an
accelerated
pace
as
the
year
closed.Beer and liquor trades
that had undergone violent fluc¬
tuations during the year,: ended
With
sales
almost
one-fourth
■

481

4.623

769

243

24,447

System

Nashville

Macon, Dublin A Savannah
Mississippi Central
Nashville, Chattanooga A St.

corresponding week in 1941. In the Western
and grain products loading for the week of
Jan. 31 totaled 32,147 cars,, an increase of 642 cars above the pre¬
ceding week, and an increase of 13,871 cars above the correspond¬

wholesalers

1940.

Central

Louisville

17,122 cars above the
Districts alone, grain

sales for
wholesalers of
electrical
goods,
for instance, were 27% over De¬
cember, 1940, compared with their
60% record for the year.
Con¬

above

Gulf,

341

1.181

Illinois

cars,

crease

...

Florida.
Mobile & Ohio

Georgia

Grain and grain products loading totaled 47^629 cars, an in¬

1,571
467

Georgia

increase

corresponding week in 1941.

December

trariwise,

cars,

of merchandise less than carload lot freight totaled
an increase of 2,331 cars above the preceding week,
and an increase of 502 cars above the corresponding week in 1941.
Coal loading amounted to 155,650 cars, a decrease of 7,149 cars
below the preceding week, but an increase of 3,493 cars above the

for

year.

372,350

enjoying the great¬
the year obtained
lead in the earlier part of

their

totaled

1,906 cars above the preceding week, and an increase of 68,156
above the corresponding week in 1941.

151,786

trades

gains

the

Midland.

Gainsville

the preceding week.

cars

was

quarter,

whole

cars or 0.3% below
Miscellaneous freight

2,237

Other

centers...

City*—L_

—

centers*..—

reporting centers—....

17.485
•■Included in the national series

covering 141 centers, available beginning with

1919,

682

THE COMMERCIAL & FINANCIAL CHRONICLE

World; Prices

Fertilizer Ass'n. Price Index improves
The
ward

general'level

during

the

The

index

the

week

120.0

was

commodity

ended

up¬

modity

The

the

rise

food

advances
dustrial

farm

declines

offset

and

cotton

moved to
week

cotton

goods, and cotton yarn pries were lower.
Decreases in catand cottonseed meal quotations were responsible for the
decline in the index of miscellaneous commodities.

nearly evenly balanced,
with 25 price series included in the index advancing and 22 declin¬
ing; in the preceding week there were 30 advances and 15 de¬
clines; in the second preceding week there were 27 advances and
during the week

declines.

laneous, 18.

[1935-1939

Week

Fats
:".V

'•? V:. V':!: 'i'&rj'
f

Cotton

**,

Fuels

8.2

Metals

6 1

Buildine

Commodities

Textiles-

7.1

'"1.3

119'*

122

129

Chemicals

;:-'5r

Fertilizer

and

Fertilizers
Farm

-3

100.0

All

^Indexes

1941, 77.8.

121.1

116.2
120.0

113.0

127.8

126.6
142.7

131.5

120.1

117.6

116.4

103.4

Feb.

were:

1942,

95.0;

176

122

115.

119

156

180

125

117

120

156

189

129

1121

'? 155

193

132

1125" 1122

U55

194

1136

1135

1121

120.0

Jan.

1942,

31,

1141" 1156

121

1142

•157

122

•145

1157

138

123

143

1158

139

orders

;

,
.

responding week of 1935-39 and
161% of average 1935-39 shipments in the same week.

Year-to-Date

•

;

Comparisons

| Reported

' production for the ;
^rst 4 ^ekr of 1^42 wai 0% be-y
;

low

corresponding weeks in 1941
shipments were 3%;' below the I

shipments,
above

and

the

13% T

orders

new

orders

the

1941 A

1942—

124
122*

143

153

1144

■

1159

<'*

144

138

123

156

1130

1123

156

132

126

156

127*

138

196

203

;

r;i43

207

1140

period.

For the 4 weeks of 1942, '
business was 38% above pro- /

new

duction, and shipments

were

13 % *

above production.

1143

119

1136

140

1142

123

141

133

124

V■ .1139

123

157."

y'
»'

160

123

140

146

141

209

157

'. '

145

Supply and Demand Comparisons

The

151

157

ratio of unfilled orders to

1941—

t-yu'

;

Weeks end.:

gross stocks was 46%

•

137

124

157

209

142

1942, compared with 33%

139

123

157

*209

144

ago.

1139

123

157

1148

•160

139

123

157

147

*160

140

123

157

141

122

143

+159

Dec.

1137

122

143

1160

Dec.

20.

+ 142

122

1143

1159

Dec.

1*142

123

144

142

123

144

•

*141
•*

;

1**42—

:-yJan.

: ■

Jan.

17
24

Jan.

99.9

Jan.

31.

1143

146

123

146

*123

147

124

148

157

124

157
157

151

124

157

141

*159

—

greater

than

orders
a

year

30% 1

were

year

stocks were 7%

ago;

gross

less.

Softwoods and Hardwoods

151

123

139

*161

123

140

*160

Unfilled

148

139

*160

345
145

Preliminary,

tRevised.

123

145

—

—J——

Jan. 31,

'I;

;

Dec.

Jan.

Feb.

131.

138

January

103.9

94.9;

>1 155

tl40

December

99.7

121.8

103.5

Combined
base

154

129

104.0

103.5

—

120

119

125

November

106.0

119.7

Drugs

Machinery

120

171

114

150

112.7

114.0

Grouos

U72

147

123

137

103.1

131.9

—

144

150

131

113.0

104.0

,Vv

119

134 -.1152

...

October

109.8

150.8

1104.4

Statu

*113

121

September

101.5

127.3

erland

150

120

August

94.0

113.3

den

/119

121

July

84.3

122.8

above prbduction; new 1
-41%
above
production. ■

93.4

tfnites

Stpe* Switb-

121

133

96.2

1926-1928

168.8

126.2

21%

were

;

1120 >/, 111

150

126

June

72.9

131.5

...

Materials-

—

May

73.8

186.8

Materials.

•

127

91.5

113.3

land < Java'

126

1941

; 144.5

158.7

1,,——.

1942

116.3
122.8

120.0

Miscellaneous

10.8

132.7

124.5

■ -

127

Feb. 8,

131.8

;

—

...

'■ tralia? 'ada

March

182.3

—

livestock

1942

117.0

158.7

—

Grains

17.3

Oil

Products

Farm

23.0

___.

Jfexv ' Nets •
U ico : Zeal'i

Eng-

114

Ago

Jan. 3,

31,

1942

>nd Oils.;..

Cottonseed

-y

Jan.

135.5

Foods

Can-

Aus—

114

Year

Ago

117.3

Total Index
25.3

Week

covering

(August, 1939=100)

January

Preceding Month

Feb. 7,

GROUP

Bears to the

April.- ^121

Latest

sU; /v- V

•«-'

February'

associations

week of

foods, 9; textiles,T2j fuel, 11} metals,; U; miscel¬

Argen-

Each Group

including grains
(coffee, cocoa

:;i

several: groups,

The indexes, which are based on prices expressed in the
currency ;
of each country, were reported. Feb. 9 as follows:
v
:;

from; regional /

Compared with the corresponding

list

livestock products, miscellaneous foods

1941—

INDEX.

by The: National Fertilizer Association i ^

Association

and

Una

COMMODITY PRICE

WHOLESALE

Compiled

turers

comprehensive

WEEKLY

the operati'ons of representative harcjwood
and : softwood • mills.
Shifimehts

table fats and other

were

7% less, according to reports

to the National Lumber Manufac¬

1941, production was 2%
a list of other miscellaneous less, shipments
6% greater, and
materials
(rubber, hides, lumber, newsprint,! linseed oil, &c.).' new business 13%. greater. : The
Weights assigned in the index to the different commodity groups art industry stood at 104 %y of the
as follows:
Grains, 20; livestock and ; livestock products; 19; vege¬ average of production in the cor-

higher ground. : The textile price average fell off during
after
recording 12 consecutive advances; raw cotton

changes

•

tea, sugar, &c.), textiles, fuels, metals and

tlefeed

Price

5% greater, new busi-

were

livestock

grains.; An advance

price of linseed oil was sufficient to raise the building ma¬
index fractionally.;: The fertilizer material index, likewise

terial

the

than

1942, was 1%
previous week, ship-

clude "a

commodities

in the

week ended Jan. 31,
less than the

ness

commodity ii

.!
the)

production/during

weighted uniformly for each country, according to its relative im¬
portance in world production.
The actual price data are collected
weekly by General Motors;* overseas operations from sources de-;
scribed as "the most responsible agencies available in each
country
■usually a government department." The commodities involved in¬

registered a small decline.
Meat prices ral¬
lied last week causing the food index to move to higher levels.
The
farm product average rose still further as increased prices for live¬
stock

Ended Jan. 31, 1942
i Lumber

ments

The index is built upon 40 basic commodities and the list is the
for each country in so far as possible.: Each

product

of international price
different basis than before the war.
Instead of i

same

index was due principally to
quotations.
The index of in¬

all-commodity

and

index, have resumed issuance
on

composite index of world prices, these organizations now are pub¬
lishing the information only as individual country indexes.

99.9, based on the 1935-1939 aver?

ago

year

price

statistics, but

Feb.

100.

Luin{>er ^Mbyemi^t^

Steady

General Motors Corp. and Cornell University, which prior to tut
European war had collaborated in the publication of a world com¬

7, 1942, this index rose to 122.0
the preceding week.
A month ago this

121.8 in

and

moved

prices

the price index compiled
which was made public

week,

compared with

age

wholesale

according to
Fertilizer Association,

National

Feb.

Thursday,: February 1%v 1942/

150

152

—-

t Revised.

Record
ended

for

the

current

week

Jan.

31, 1942, for the corresponding week a year ago, and
for the previous
week, follows in

thousand board feet:

English Financial Markei-Per Cable

Engineering Construction Down 27% In Week
Heavy engineering construction for the week (Feb. 5) totals
$161,090,000, an increase of 72% over the volume for the corres¬
ponding 1941 week, but 27% lower than the 1942 high of a week
ago as reported on Feb. 5 by "Engineering News-Record."
Public
construction is 198% higher, almost triple the 1941-week
total, bui
is

32%

below

compared with
The

total.:

The

private

week ago, but is 54% below

week's

current

870,000,

week's

last

volume

year

daily closing quotations for securities, &c-, at "London, af
reported by cable, have been as follows the past week:
Saturday
Silver,
Gold,

168S

168s

ft
A

£ 82 %

£82%

£105

Closed

£115%

£1.15%

£115%

35%

I-

-•-

35%

£82%

Week

Wk. (rev.)

459

Production

459

473

71.11

227.565

221,437

225.476

268.047

/252.973

254.966

311,856

277,107

335,606

—

Softwoods'

Hardwoods

1942 Week

has

35%

71.11

1942 Week

-s/i'S;/

?>7«i

Production

210 077-—100^

11.359—100%

ihioments
71.11

}

Orders

£115%

35%

;

1941

Mills

£105

7l.ll'

71.11

———

35%

1942

Shipments

168.'

£82%

£105

(Foreign)

mined)

168s

Friday
23% a

23 V2d

Closed

U. S. Treasury (newly

16%% increase over
$72,768,000, is 67% below the period last year, but
public is 57% higher as a result of the 110% gain in Federal work
a

£ 82

Thursday

23 % d

1960-90

Bar

168s

Closed

Wednesday

price of silver per oz. (In cents) In the United States on the same day
••/xxyY/../,, //r-xxxx/^tH Yy.x/x.x■:y.: iixXX /

been: V

ago.

23 V2 d

The

Tuesday

23 %d

168s

oz.——

3%%

British

Monday

Closed

2%%

British

brings 1942 construction to $789,the six-week 1941 total.
Private

oz.

fine

Consols.

26%

Softwoods and Hardwoods
c-

The

255 280—122'£

12.767—112%

296,937—141^

14,919—131%

Orders

;

construction,

Construction

volumes

for

the

1941

week,

last

week,: and

Moody's Bond Prices And Bond Yield Averages

the

current week are:
^

Feb. 6. 1941

Total construction

Private

Public

Jan. 29. 1942

$93,741,000

$221,694,000

$161,090,000

construction

46.951.000 vv« 17.156.000

construction

computed

204.538.000

23.328.000

17,307.000

—

187,231,000

MOODY'S

9.543.000

23,462,000

—

129,900,000

139.443.000

1, 1942L-?

•■■■■

the

classified

reported

are

construction.

gain

construction

Industrial

last

over

week.

Subtotals

the

for

week

each

class

Feb.

New

capital for construction

for the week totals $2,$7,576,000 reported for the
year.
The current week's financing is made up of $2,395,000 in state and municipal bond sales, and $29,000 in RFC loans
for public improvements.
:
• V

week

volume

This

construction

$101,564,000

tops

■

Aaa

•

A-

116.22

106.92:

116.22

106.92 >

116.22

106.74/

116.41

i 13.50

116.41

1,113.-70

113.70

Corporate by Qrouv 4

Baa

-B. R

91.77

U r'x, indn

97.16 V; 110.70

113.70

97.16 :; i 10:52

L07.93 ! t 91.91';

•

113.70 '-107.93

106.92

106.74

116.22

113.70

97:16'

91.91 5

HS.'IO --107.80

106.74

97.16*

91.91 *

.107.80

106.74

116.22.

106.92

116.22

113.50--/107.80

A92.06:
'

;

107.80

115.82

106.92

116.61

114.08

107.98

116.93

106.04

115.82

113.50

107.09

120.05

108.52—118.60

116.02

115.89

105.52

112.00

116.51

106.21

1941.

.116.22

2 Years asro

Feb.

10,

113.5f

•

113.3!.

110.88

113.8f

J:N.

90.63

•

110.34

95.92

110.34'/113.31

97.78

112.56 * 116.4 /

95.62

109.42,111.6?

96.69

109.79 /113.50

/109.60 -V. 92.50 :
1 89.23

•

Bank> of

112.37

115.82

101.31

84.43

90.63

107.09 ; 11L.07

"V'

Individual

Closing

Prices)

1942f^-;

The London Stock
.Quotations of representative stocks

Exchange
as

received

Avge.

Daily

Corpo¬

Average

Feb.

Feb. 2

T^oacu>---.
Cable & Wire ord
British A*v>er.

;

Cons.

Goldf'eids of S. A.—

Courtaulds (S.) & Co..
De Beers-

Distillers Co
Electric &

Musical Ind

Ford Ltd—

Closed

Hudsons Bay Company—

Imp. Tob. of G. B. & I
London Midland Ry.

80/-

78/9

'•
v

*■;

£69
£13
38/9
34/£814
73/9
14/6
25/9
25/-

£18%

76/~
£6%

£68%

pie

—

3,93 >

3.93

2.97

3.28

4.28

—

2.83-

2.97

,2.84

3.35

3.93

;

4 .28

3.93

4.28

3.29

2,97

2.97

3.14

3.93

4.28

3.29 -

•'2.98

3.13

•3.14,
3.13

2
30

Jan.

2.97

3.29

4.28

3.93

3.14

2.84

2.98

3.29

4.27

3.92

;3.14

Samson,

absorbing

succeeding

PREFERRED

4—The

j Banl^ oi

STOCK

Farmers

ISSUED

National

"Geneseo,

Geneseo,^V;

111

$25,000
Sold

locally,'*

2.97

3.14

Moody's Daily

2.97

;

2.98

2.84

334

2.97

2.84

3.35

and

'#• 2.97

3.14"

3.35

2.97

3.14
•

Feb.

2.97

;

3.29' •;

'4.27

•

3.92- /

2.98

3.34

2.84

2.95

3.30

4.28

3.92

3.13

2.97

3.34

2.83

2.96

3.30

4.28

3.92

3.14

2.97

38/9

3.34

2.82

2.95

3.30

4.29

3.93

3.13

2.94

34/-

39/3
34/-

3.39

2.86

2.98

3.33

4.37

4.01

3.15

2.99

3.39

2.86

2.98

3.33

4.37

4.01

3.15

2.99

Commodily Index

;

£69
£13

£8%

£8y4

£8%

73/9

74/-

*74/^

14/6

26/3

26/-

?6/-.

25/-

24/6

130/-

131/3

£18%

76/~
£6%

£18%

76/£67/8

£18%

76/£67/8

£8

88/9

48/9
32/-

48/-

31/9
16/9

32/-

16/9

^4,7<i

4.28

„£13

88/9
48/-

4.29

3.28

Indw-

£13

10/9

£41//2

£4%

Low

1942

High

1941

£4%-

2.82

2.95

3.28

4.27

3.06

3.39

4.47

4.03

2.72

2.85

3.19

4.24

3.89

10,

•

Tuesday, Feb.

Wednesday,
Thursday,

3.12

3.91

2.86

3.25

2.96

Friday,

3.20

3.08
2.83

1941

2.76

3.38

—

3.37

2.99

4.39

3.96

3.18

2.98

Tuesday,.

Ye"rs a^o

10,

•

Thpse

coupon,

prices are

movement

2.86

3.60

1940—

maturing

3.67

3.04

4.83

4.37

3.33

3.11

computed from average yields on the basis of one "typical" bond (3%4
vearsl and do not purport to show either the average level or tlv

actual

price quotations.
Thev merelv serve to illustrate in a more com
prehensive way the relative levels ,and the relative
movement of yield averages, the lat
ter being the true picture of the
bond market
%ver»ep

In test
the

5__

•

Feb.

_,__.226.2

_226.5

__225.5

7__

9_____,

Year

1941 High,

comnlet.e

issue

list

Oct.

bonds

1941,

page

used

409.

computing

these

indexes

was

pub¬

High,

Low,

Jan.

ago,

10*

Feb.

weeks

Month

1942
The

lished

Feb.

Monday, "Feb.

Two

Feb.

Saturday,

3.03

3—

Feb.

■

Yen" ago

Feb.
o

3.34

3.42

1941

Low
1

1942

High

R. R. .p. u,

3.28

association.

_:' y.'y.

Corporate by Groups '1

x %

38/9

Witwatersrand

Areas

*'•

Baa

2.97 y.

2.83

3.34

•>

2.97
K

-2.84
V

'*•

Feb. 6

3?/16/9

—.—

TJnited Molasses——

34/6-

Feb. 5

£8
88/9
-8/9

.—r—

Vickers

35/9

130/-

76'~„
£6 /8

Rio Tinto—

West

25/£18%

Shell Transport

36/3

;

131/3

Rand Mines—

Rolls Royce

£69

Metal Box-

Feb. 4

36/6
80/-

£13
38/9
34/£8%
74/3
14/6
25/9

Central Min. & Invest

3.35

iair

./Aa

2.84.

V.r-.i A,:

FHdav

Feb. 3

36/6
82/6

Pure Drugs

•

2.84

3.34

ZIZZZIIIIIIIZ

T"p«d*y Wpdnp.cday Thursday

3.34

A----

7
6

Mmrinv

Boots

•

/" ' Corporate by Ratings
Aaa

rate

■

3.35

day of the past week:.
Jan

•

by cable each

1942.

care
of
the
liquidating
'i;* bank,; tnx..v

14,

;:,-r
•

■

Jan.

VLiouidating Comj George
U. Clausen, John L. Em-

(Based

50,000

-Effective

;:1 V;v

AVERAGESt

YIELD

BOND

MOODY'S

Sharon /Springs,

i- '

117.80 1.113.31-' 106T3990.34 <

'102.46

$75,000

97.47

V '

115.45

National

Fa.;-.,.

laney
and
John;M.. V
.Shane;,care of the liqul- t
dating bank,' !;,

-ir.y

97.31;*-110.52 I'll 3.5C

95.92

1940-

First:

Oakdale,

J 113.7C

110.52

92.06/

106.04

113.71

110.52

97.16

1 Year aeo

10,

>jeb.

106.04

118.10

1941

Bank

110.70: 113.'.$

106.92-

117.61

Feb.

;jj

•FyNo absorbing on succeeding;i'jv.;association.:;.., ::

LOW

De-

Amount

Jan. 31i-,The

97.16

114.08 v 107.62/A9L77
113.50* 107 09
,' 90.63

1941

■~£

97,31 ;:110.70: /113.70

114.08 : /107.62
113.89 ,107.62'"

High

97.31-110.52 / 113.70

116.22
116.41

.116.61

1942_—

Treasury

91.91

106.92

118.00

Low

nkH

V 91.91;V

117.51
117.60

1942

Currency,

'VOLUNTARY LIQUIDATIONS

97:31'; 110.52 % 113:70

92.06 :

High

information

from the office of the Comptroller

T 13.70

110.52

97.16
"

91.91

23
:

following

110.52'--113.70

"110.70

97.16

91.91.

107.80:

113.70

117.17
117.08

—

| The

113.70

91.91 •?

;

T07.80

117.16

—

National Banks L

^ /; ;v

partment:

x X

13.70£• 107.98

106.74 :

117.01

Jan. 30

financing for the year to date, $562,338,000
reported for the six-week' period last year
.

: ;

frt CorporeUe bv Ratings

■

117.10

purposes

by 454%.

art

of; the

Yields). U

117.10

last

New

averages

:r'*x

116.93

yield

PRICESt

Average

117.02

with

compares

rate *

BOND

116.70

______

9
•

construction

424.000.

Cor po-

Bond*

-v

and -bond

are: waterworks, $854,000; sewerage, $927,000; bridges
$1,367,000; industrial buildings, $11,184,000; commercial building
and large-scale private housing, $9,452,000; public buildings, $100,473,000; earthwork and drainage, $970,000; streets and roads $2,301,000; and unclassified construction, $33,562,000.
1

(Based

Avge.'

Govt.

1v*raae.t

groups, gains over the 1941-week
bridges, public buildings, and unclassified
building in the only class of work to record

V. 3.

Uailv

totals

prices

tables:^

21.647.000

46,790.000

Munic:paL^i^-_.-_->^>^.—

bond

the following

given in

state and
Federal

Moody's

Feb. 5. 194?

Jan.

19^-_:__

Feb.' 10
Sent.

Jan.
Jan.

27-

—

—227.3 "
221.8 *

.-,.,..,.173.5
9,

27—

2—

i-—219.9

227.3

—wr.^___220.O

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4045

155

97.1% K

Output—War Orders Increase Rapidly l §
-The

•

number

and

tonnage

rates of steel

that many steel

companies see a complete blackout ahead for steel
bookings covered by lower ratings unless these needs are handled
by allocation, says the "Iron Age" in its issue of today (Feb. 12).

preceding week.

1941—

Feb

May
May

May

10—

central .authority -at Washington, it is believed, has accurate
figures showing the overall distribution of steel orders by various
priority levels.
Some steel companies have found that more than

Feb

—94.6%

Jun

Feb

—96.3%

Jun

3—97.5%

Jun

23-

70%

Mar

Jun

their

rated

backlogs

ratings of A-3

carry

better,

Mar

The

■

A-5

A-10

Apr

becoming ineffective since such tonnage

are

aside

for

urgent

material.

war

'! preparing buildings and equipment for an army of several million
•

The

> ture of

Navy
50

finished

placed

Department recently requested bids for manufacshells, requiring upwards of 80,000 tons of cold

and

steel.

Contracts

the remainder

Cancellations

for

this

some

work

expected to be allocated
orders

non-defense

continue

have

steel

mills

with

one

tons

recently

company

such

been made for steel to go into the

ducers

have received

orders

for

dropping

With

business/

lake

new

the

allocations
ore

necessary

has

previously placed.

the

several hundred
having already

additional

order

been

of airplane bombs has not been reached, with the

Army apparently
unpopular size and; the mills emphasizing; the

holding out for an
advisability of using a popular size.
•
Steel ingot production this week rose a point to 97.5 of capa¬
city, according to "The Iron Age" estimates, the highest level since

;
'

This week's gain is due largely to re¬

'the week before Christmas.

sumption of melting in a number of open-hearths which had been
down for repairs, plus a slightly more plentiful supply of scrap in
several areas Which have been suffering from shortage of this
material.

Pittsburgh district steel operations are up one point this week
of capacity while Cleveland gained seven points to 95%,
Birmingham rose 3.5 points to 99% and Detroit climbed 1.5% to
to

97%

point higher at 105% and the St.
Louis district advanced six points to 81%.
The big Chicago steel

: 107.5%.

Southern

Ohio

producing district dipped a half point to 102.5% and Buffalo is 2.5
points lower at 90%.
Philadelphia is unchanged at 90.5% while
Wheeling remains at 88%.
..
.
- '
Several steel centers could lift : operations if scrap supplies

"the

Prices of junked automobiles are to be governed by
and steel scrap price schedule after disclosure that auto

ample.

were

iron

96.8%

Aug

:_96.1%
96.8%
96.9%

Oct

98.1%

97.8%

Oct

27-

Nov

—99.9%
98.2%

Nov

Dec

5—

96.6%

97.0%

Full

is much

by Office of Price Administration have

of non-integrated steel mills

allowances

and

truck

for

delivery.

•

President said in explaining

Berno,

the company's

1 decision.

Steel

Finished

Feb.

One

week

One

month

One

year

&
•

Lb.

ago

78%

represent

based

steel bars

the United

countries is

supply

at several

remote

from

campaign

centers being increased last week by shipments
In other areas some result is felt from the

sources.

reclaim

from

tonnage

wrecking

automobile

effect of effort to release material

Full

but

from this

1939
:

—2.58414c.
•1937 _L2.58414c,
1936 j.-2.32263c.
1635 —2.07642c.
'1934 —2.15367c.
1933
1 95578C.
1938

—1.89196c,
1931
1.99629C.
1930 —2.25488C.
•1929 —2.31773c.

'1932

—

♦-

ia*ed
•

phia,
■

1941
1940

Oct
Jan..

2.05200c.

Mar

4
10

2.06492c.

Jan

1.95757c.

Jan

7S"3Rc.

M<iv

1.83901c, * Mar

2
?
1

1.86586C.

Dec

1.97319c.

Dee

2.26498c.

Oct

Buffalo,.
■

•

Valley

$23.61
23 45

are expected to develop in a short time.
hearths in condition to operate remain idle from
steelmakers are. maintaining output on

open

small margin.

active, one more than Dec.
September, 1941, when 219

13.56

Jan

.^.-16.90

Tin

Gross Ton

fair

•

18:21

and .Southern

iron

22.61

■

Jan
,

Jan

15.90

Dec

the

May 14

18.21

Dec

One
One

One

week

1942, $19.17

ago

month

-VX"-.-;-;*:•> V !:
Gross Ton

tations

■phia,

20.00

and

..Low

-$22.00

Jan

$19.17

21.83

Dec

16.04

Apr * f

Apr

Oct

14.08

May If

15.00

Nor

11.00

Jun

21.92

Mar 30

12 07

of six,

Nov

17.75

Dec 21

12.67

Jun

10.33

1934

13.00 ;; Mar 13

9.50

Sep

1933

12.25

6.75

Jan

6.43

Jly

8.50

1931-—

1930
1929

____

totaled

levels.

units,

37,125

com¬

Dee

steel

Finished

Aug

Jan 12

Products, Inc.
Century Electric Co. ivi-D
/

The Clark Controller Co.'
Connecticut

Curtis Lighting, Inc.

the arrival

President Roosevelt said

eight

Ireland

the

ten American ex¬

iron

Valera

State)

11.25

Dec :. S

14.08

Dee

Iron and Steel Institute on Feb. 9 announced that

States

units.)
the

the

The

objective

strength

President

such
said that
of

sending

troops

(Irish

Free

landing
of American troops in Northern
Ireland, which is under British
Mr. de Valera based

Jan

Eire

had protested the

years

Feb

17 58

carrying
victory.

eventual

Kingdom, but withheld details of
the ; movement from the United

15.00

Corp.

ufacturing Co.
The Leland Electric Co.
The

Master Electric

The

Nestle-Lemur

Noma

The

Co.

Electric Corp.

Ohio Brass

Co.

Switch Co.

Electrical Products

Corp.

turing Co.
The

objection
not

was

either

the

ground

American
He

also

his

that he

consulted in advance

the

were

British
referred

partition of Ireland 20
when the six counties

ago

cut off from the rest of the

country by

liament,

British Act of Par¬

"despite

■

Gamewell Co.

General Electric Co.

Harvey Hubbell, Inc.
The Kelley-Koett Manufactur-

ing Co., Inc.

Kellogg Switchboard and Sup-

ply Co.

•

Sangamo Electric Co. r'JM
Sonotone Corp.

;;'££

Square D Co.

Wagner Electric Corp.

Westinghouse Electric & Manu¬
facturing Co.
v/

Philadelphia Insulated Wire Co.
The

Potter Co.

The

Reliance

Electric

and

En-

gineering Co.
Weston

Electrical

Instrument

1 Co.
The combined sales reported
by the group were $886,000,000
in 1940 compared
with $667,-

in 1939.
charges

000,000
all

after

Net profits
totaled $87,-

000,000 in 1940 compared with
$63,000,000 in 1939, equivalent
to 9.8% and 9.4% of sales, re¬

spectively.
Total
dividends
paid out by these enterprises
were
$74,000,000 in 1940 com¬
pared with $54,000,000 in 1939.
The

combined

assets

for

these

enterprices totaled $831,000,-

end

the

end

1910

com¬

with

pared

$739,000,000 at the
1939, while surolus in¬

creased from $212,000,000 at the

1939

$226,000,000

of 1910.

the end

Vaniman On WPB
Branch

Appointment of R. Lawrence
out Vaniman as
Deputy Chief of the

expressed sur¬
prise that Prime Minister Eamon

land, which is part of the United

8.5(1

for

was

for

war

Governments.

Dec

American forces in Northern Ire¬

Jan

T,"

Cutler-Hammer, Inc.

composite

Mr. Roosevelt also

Telephone & Elec¬

tric Corp.

Automotive

control.

Apr 20

•,

Cable Electric

end

recent- actions of

steelmaking- pig

peditionary forces operating in
various
parts
of
the
world.
(The War Department had dis¬
closed on Jan. 26 the arrival of

11.33
—

week

Jan. 27 that this was only one

i* 22.50

1932

States troops in Northern

Ireland.

telegraphic reports which it had received indicated that the operat¬
ing rate of steel companies having 91% of the steel capacity of the
industry will be 98.2% of capacity for the week beginning Feb. 9,

Commenting

United

1938

13.42

former

Throughout The World

1037

-i,

remain

and

OPA

$56.73; v semifinished

American AEF At Front
'

•

31, 1940.

this group are:

heavy melting steel perap quo¬
consumers
at Pittsburgh, Phlladel-.

High
.

last

steel at $36.00;
$23.05; steelmaking scrap at $19.17.

Chicago.

1934 at Dec.

■"

ago

No.

production

Automobile

$19.1'

year

Based

manufacturers have been ordered to reduce use of
1.25 pounds of pig tin per base box of tin, plate.
Use of tin

Composite prices have not been affected by

18.71

Feb. 10,

for can ends in place of tin plate
tin plate makers install equipment

heavy types, light truck production ceasing Feb. 10.

Dec

Steel ' Scrap

general

pared with 73,305 the preceding week.
Passenger car assembly has
ceased under government order and present output is trucks, mainly

Dec

become

plate

13.56

Philadel-

$23.45

J-

electrical

The 31 companies included in

000

14.79

—

Act of

ing except on a priority of A-10 or higher.

Jan

1935

Mar 20 r
Dee 23

equipment (other
than
household
appliances)
which had securities registered
under the Securities Exchange

Jan

—

in blast

ment

14.81

vVv-'-

the largest number
in service.

production of this material.
Inland Steel Co. is adding equip¬
for this purpose and other producers are preparing to do so.

for

i— 15.90

1940

Low

Dep

31,
were

Use of bonderized black plate

bids

1932

1936

-V-

The American

Jan

1941

for basic iron
iron at Chica<?o._

Hipfi

Aug 1L
May U

16.90

9
29

foundry

18.73
17.83

1933

2.32263c.

Cincinnati

at
.

2.27207c.

—

averages

and

toes

Nov
Nov

1930

ago——-

year

May

1929

————$3. 1

month ago

One

^One

Feb

18.84

ago—

Jlv

20.25

17.90

10, 1942, $23.61 a

Feb.

'One week

19.61

19.74

Iron

Pig

Mar

1935

May

Jun

cor¬

covers

supplies and

yards.

is not yet

source

large shipments

Meanwhile,

1931

Sep

2.26689c.

2
2
Jan
3
Jan
4
Mar~; 9
Dec 28
Oct
1
Apr 24
Oct
3
Jly , .5
Jan 13
Jan
7
May 28

23.25

manufacture

tne

plate- and terne plate is to be restricted by a quota system to be
announced later by WPB.
Long ternes are not to be used for roof¬
Sep 11

19*4

2.24107c, Apr

2.30467c.

_12.35367C.

1940

$20.61

Sep

23.25

918

1936

beams.
hot and
products

States output.

—2.30467C.
Sep
-„2.30467c.;:-Jan

1141

$22.61

'937..;

Low

High

—————2.30467c,

index

plates, wire, rails, black nipe.
cold-rolled sheets and strip. These
tank

1939

—2.30467c
—--2

ago

weighted

2.30467c.

1942,

10.

LOw

High

No.

Report

porations engaged primarily in

The A. C. Gilbert Co.

tin to
"IRON AGE" COMPOSrfE PRICES

.THE

states:

export prices were at the domestic ceiling.
The allowance is tc
apply only to the actual .exporter and not to intermediaries.
A slightly easier situation is developing in steelmaking scrap,

were

•mill,"

announcement

The Emerson Electric Manufac¬

since

grated steel companies working well below capacity, they are reto ship steel out of their own plants to another finishing

comparison.

and

reference

Commission's

result of the recent OPA order allowing export
merchants and export agents to charge above the domestic ceiling.
In the case of export merchants a 10% increase is allowed and socalled : export; agents are allowed 5%.
Under the previous order

un-

-luctant

whole in uni¬

as a

Penn Electric

and South American

movement; to. Central

Steel

increasing

is the announcement at Cleveland by Davey
Steel Co. directors that sale of the. company has been recommended
to its stockholders.
"With the finishing departments of the inte¬

•

in
well

The Electric Controller & Man¬

•

Pointing up the predicament

Duro-Test

most part.

able to obtain supplies

both

percentages,

In the scrap schedule a premium of
$5 per ton is allowed for cast iron borings for chemical use in ex¬
plosives manufacture over the price of plain borings.
Other changes
relate to computation of shipping point prices in New England, a
schedule of allowances where vessel movement is involved, closer
definition of some grades of scrap, better provision for unprepared
scrap
originating where preparation facilities are not available
ing involved for

objects requiring dismantling, such
Steelworks production last week declined 1 point to 96% in
as
bridges, box cars and junked automobiles.
January coke pig
; iron
Cincinnati gained
production dropped to 4,970,531 tons from the record total of spite of better scrap supply in several centers.
5,012,276 tons in December, 1941.
Output slid from 161,686 tons 3 points to 87%, New England 7 points to 92 and Youngstown I
•a day in December to
160,340 tons in January. The January oper¬ point to 88%. Cleveland declined 10 points to 84%%'-, Detroit 2
ating rate was 99.3% compared with 101.2% in December.
There points to 85 and Wheeling. 11 points to 84%. Rates were unchanged
103; Buffalo, 79V2; Pittsburgh, 95; Birmingham, 90;
?were 217 blast furnaces operating on Feb. 1, producing at the rate at Chicago,
'of 159,270 tons a day, compared with 216 in blast on Jan. 1 with a St. Louis, 78; Eastern Pennsylvania, 90.
Coke pig iron production in January, 4,958,785 net tons/ was
production rate of 162,140 tons.
;
-Structural steel awards for the week are estimated at "25,000 56,210 tons less than 5,014,995 tons made in December, a decline of
'•tons with new projects totaling 25,500 tons while reinforcing steel
1.12%.
The January figure was 6.03% above January, 1941, and
awards amounted to 9,450 tons with new projects at 19,410 tons. 23.21%
over
January, 1940.
At the end of January, 219 stacks
-

and

made little essential change in the price " situation, only details be¬

lack of scrap and numerous

by the OPA to exclude

profit and loss

expressed

industry group

by OPA requiring

announcements

generally
1934-1939.

surplus statements and finan¬
are presented for indi¬
vidual
companies and for
the

easy

1——97.6%

mills to continue to absorb the
same
freight within their areas as over the past two years and
tightening definitions of extras in the price schedule.
Contracts
entered into before April 16, 1941, when the schedule was issued,
if not in conformity with the schedule/ may be completed on con¬
tract terms only with respect to shipments made before Mar. 15, 1942.
Various

which
period

tne

years

extend

cial ratios

subcontracting is on the increase.
•
,,
•
A formal revision of the iron and steel products price schedule
issued

and

with the War Pro¬
difficulties formerly met and distri¬
War production is being broadened and

from auto wrecking yards must not exceed ceiling prices de¬
livered to the mills, the OPA said. /"Unprepared" scrap is now
defined

dollars

eliminating

smoother.

1940

reports

statements,

by steelmakers

co-operation
is

felt

-scrap

earlier

The

Board

and

1939

form tabular form which permits

95.9%

reports cover the calendar

Balance sheets and

!:> W "-" '

public the

the Survey of Amer¬
ican Listed Corporations.
These
of

reports

covered

96.4%
Jan
12
97.8%
Jan
1997.7%
Jan 26—
—97.3%
Feb
2——97.7%
Feb.:- 9—
98.2%

—98.4%

Oct

made

series of industry

new

Supplies

has

SEC

tenth of

96.1%

1942—

Jan

The

93.4%

Cleveland, in its summary of the iron and steel mar¬
kets on Feb. 9, stated:
Despite greatly increased consuming capacity for war pur¬
poses, supply of steel and iron is more nearly meeting requirements
and delays are being reduced steadily.
Some tight spots remain, partly from insufficient supply
of
semifinished steel, partly from restrictions imposed by the scrap

wrecking yards are being purchased on a wide scale for immediate
conversion of their scrap for steel plants.
The resulting prepared

;

Oct
■

—97.9c*,

"Steel" of

has been

placed for sheet steel to go into airplane landing mats
A definite decision in the gage of tubing to be used in manufacture

Aug 1U

15
22

96.0%
97.6%
-96.3%
95.6%
96.2%

May

Dec

Sep
Sep

91.8%

94.3%

Sep 29

94.9%
95.2%

Jly

bution

reach

carriers, steel pro¬
bars to supplement

Jly

15-,

Dec

99.9%

7—

Aug

Dec

98.6%

97.5%

—*96.5%
96.3%

99.0%

soon.

shape and plate orders

Jly

98.3%

duction

been

'thousand

99.3%

„96.0%

Jly

situation.

million

bar

99.8%
—99.2%

Sep

Dec

—96.9%

25_
2
8

Aug
Sep

—99.2%

9—

Apr

is being
Complicating the
steel distributing problem are the gigantic shell program, the allo¬
cation of railroad maintenance i of way supplies, the mandatory.
order to complete 36,000 freight cars by May 1, the great stepup
in Naval and merchant ship building and the herculean task of

pushed

—99.4%

Apr 14
Apr 21

One result of this unprecedented change; in steel distribution
(concentration of highly rated orders) must result in more allocations, according to some steel analysts.
Priority ratings such as

;

24.

Mar

•

;;'"

■

—98.8%

Mar

"Age"; further states:

10—

Mar

•

■*

99.2%
99.9%
98.6%

96.9%
97.1%

3—

Feb

"No

month ago, and

one

Electrical

ago,

compared to 1,614,200 tons one week ago, 1,615,800 tons
1,567,100 tons one year ago.
Weekly indicated
operations since Feb. 3, 1941, follow:

castings,

orders carrying AA to
rapidly in recent months

the

97.8% one month ago and
increase of 0.5 point or
The operating rate for the week

week

one

This represents

ago.

year

beginning Feb.'9 is equivalent to 1,622,400 tons of steel ingots and

steel

war

;A-3 preference ratings have increased

one

from

0.5%

97.7%

with

compared

Steel Production Rises—Demand Still Exceeds

683

the .expressed

will of the Irish people."

Automotive
Production
on

Jan.

Branch

was

Ernest

Branch Chief.
leave

from

the

Board

War

announced

Kanzler,

Mr. Vaniman is

the

Chrysler

Corp.,
where he is Executive Manager of
the African Division.
Mr.

liaison
Board
the

Vaniman
between

maintain

will
War

Production

in Washington and
headquarters of the

offices

Detroit

Automotive
has opened

Branch.

Mr.

Kanzler

offices in that city in

order to maintain close touch with

activities involved in the
sion of the automotive
war

work.

conver¬

industry to

684

J '

THE COMMERCIAL & FINANCIAL CHRONICLE

Electric

Weekly Coal and Coke Production Statistics
The Bituminous Coal

its

latest

coal report

Division, U. S. Department of the Interior,

ing week.
to

The U. S. Bureau of Mines reported

;

000

tons,

week.
of

■

that production of Pennsyl1,096,-

decrease of 169,000 tons (about 13%) from the preceding

When compared with the output

1941, there

in the corresponding week

decrease of 7.9%.

was a

UNITED

WITH

STATES

SOFT

PRODUCTION

COMPARABLE

DATA

COAL,

THOUSANDS

CRUDE

PRODUCTION OF

Major Geographic Divisions—
England

PETROLEUM

Feb. 7, '42

New
-Jan. 1 to date--

-Week EndedJan.

Bituminous coal

Total,

Feb. 1,
1941

Jan. 31,

1942

1941

C1942

Middle

Jan. 30,

1937

West

.Daily

average

Crude

Weekly

41,438

1,662

1,658

5,751

q;»

26,286

29,555

22,011

■

•

(IN NET TONS)

V>VV'i

V; v

Feb.

Jan. 24,

31,

Daily
a

washery
b Excludes

operations.

1939

1938

2,399,805

2,193,750

2,341,103

+ 17.9

2,413,600

2,198,266

2,360,950

2,206,560
2,202,454

2,351,233

16.

3,238,160

2,745,697

+ 17.9

2,453,556

3,230,750

2,714,193

+ 19.0

2,434,101

3,261,149

6_.

137,700

647,200

537,000

552,600

20,829

19,671

20,877

16,781

16.745

coal,

truck

from

Dec.

(In Thousands of Net Tons)

and

on receipt of monthly tonnage reports
annual returns from the operators.)

subject

are

State

final

from

revision

sources

district

Jan. 24,
Alaska

Illinois.,
'

176

238

i :v

481

(f)

284

...

216

2,558,538

2,207,942

2,331,415

2,554,290

2,228,586

2,339,384

2,817,465

+ 19.1

2,583,368

"care for your car and your coun¬

2,251,089

2,324,750

try."

2,837.730

479

••

1.352

;;

•

348

+ 16.8

2.576,331

2,281,328

2,327,212

2,866,827

+16.5

2,622,267

2,283,831

2,297,785

2,882,137

+ 17.3

2,608,664

2,270.534

2,245,449

2,858,054

+ 17.9

2,588,618

2,276,904

2,214,337

121*

2,889,937

212

213

806

887

805

888

726

276

Kentucky—Eastern
Western

270

216

335

166

Maryland—

Michigan..!..^.—
Montana.—

;

•

;13

•V.V 25

15 V/

';,y

+ 15.8

2,587,113

2,325,273

2,263,679

2,560,962

2,247,712

2,104,578

+ 13.9

2,605,274

2,334,690

2,179,411

committee

2,975,704

+ 14.8

2,654,395

2,376,541

3,003,543
3,052,419

+ 15.7

2,694,194

2.390.388

2,234,135
2.241,972

dustry War Council in its report

2,757,259

+14.5

New Mexico—

'r-

Ohio—:

WvV

'Pennsylvania bituminous
Tennessee—
J
Texas

—

*678

Virginia.
.vV.

j.„.

Virginia—aSouthern

bNorthern.

1941

+ 15.6

2.558,180

1,619,265

1,542,000

+ 15.7

2,688,380

1,602,482

1,733,810

+ 14.5

2,673,823

1,598,201

1,736.729

3,440,163

2,996,155

+ 14.8

2,660,962

1,588.967

1,717.315

2,994,047

+ 15.8

2,632,555

1,588,853

1.728,203

2,989,392

+ 16.2

2,616,111

1,578,817

1,726,161

•

•:

A.'--

■:

(Thousand#

1940

over

510

104

1939

13,149,116
11.831,119
12,882,642
12,449,229
13,218,633
13,231,219
13,836,992

11,616,238

+ 19.1

10,185,255

14,118,619

11,924,381

+ 18.4

10,785,902

June

814

133

May

3,402.

11,683,430

+ 12.5

+11.7

10,974,335

+17.4
+ 16.3

July
August

+ 30.0

September

13.901,644

112

111

109

October

14.756.951

380

331

335

291

211

November

13,974,232

V- 56

December

1,828

762

168

1,845 V

1,945

667

| 830

644

115

—VVVv'--

165

•■Uv

1937

explorative

in¬

and to extend
the
nomic life of small wells.

eco¬

While total crude oil reserves of
the United States are estimated at

discovery of new oil over
past few years, if continued,

10,068,845

the

will make it

9,886,443

8,607,031

9,573,898
9,665,137

to retain them at levels
necessary
to supply without waste of reser¬

9,773,908

voir energy

9.170.375

10,036,410

9,801,770

10,308,884

11,484,529

+ 21.0

10,653,197

9,486,866

+ 18.3

11.289.617

9.844.519

12,213.543

+ 14.4

9.908,314

10.065.805

11,087,866

9.893,195

12,842,218

11,476,294

10,372,602

9,717,471

138,653,997

Total for year

essential

are

centive

9,787,901

186

;

•

Ickes

The report stated that

rate of

1,134

619

•

Coordinator

In¬

8,911,125

12.474.727

sub¬

9,110,808

9,868,962

the

-8,750,840
V8,832,738

9,525,317

18.9

„

Petroleum

this week.

Petroleum

8,396,231

10,121,459

10,705,682
11,118,543
11,026,943

10,589,428

the

9,290,754

10,183,400
9,256,313

•

1938

January

April

2,085

history, the report
said, it warned that the declining

1940

returned

was

the highest point yet recorded in
the industry's

ot JUfowatt-Hour#)

February

175

MONTHS

2,037

825

States

RECENT

1941

March

133

FOR

field

adequate prices of crude oil, which
give consideration to overall costs,

1938

2,845,727

% Change

479

1939

3,012,638

1941

2,213

1940

3,474,638

DATA

f50

137

483

1941

•Revised.

2,433

over

•

80
i*

73 >•

2,033,319

3,002,454

125

153

Western

.y:

2,053.944

2,174,816

3,468,193

V ' V

70 v ;

166 v

•„/,

1,964

Wyoming
cOther

392

Washington..

124

...

632

2,460

•-

141

Utah

West

;

2,644
.__

_._V

•

2,424,935

2,464,795

3,450,468

and South Dakota—

North

2,712,211

+ 17.3

% Change

•3,288,685

1942

240

•

urging

program

oil prices high
enough to
stimulate exploratory work in the

+14.4

;

607

> 39

;

100

six-point

crude

2,839,421

190

conservatively and to

2,931,877

•3,472,579

140

173

71V

oil products

3,495,140

Feb.

659

220

2,231,277

3,234,128

;

W-

2,111

209

:«

Kansas and Missouri

2,211,059

3,475,919

„

31V

Jan.

(«

2,538,118

3,414,844

—.

Jan.. 24—

226

:■

.v.

+ 18.2

3,347,893

3—

Jan.

3,339,364

Jan.

434

107 V

will

program

help the mqtoring public to know
the steps that are possible to use

+ 19.3

Week Ended

Jan.

the

3,247,938

—-

el923

258

1,440

570

2
;

1,212

1,518

565

Indiana

1937

stickers, station signs
appropriate media.

other

+ 16.2

1942

Jan.23, average

127

212

1,466

Iowa

103

—

323

108

195

Georgia and North Carolina

27,

1940

Colorado...

1941

all

2,769.346

Jan.
Jan.

Jan. 25,

373

380

—

Arkansas and Oklahoma—

17,

1942

Alabama..

Week Ended

Jan.

1942

State—

2.211,391
2,338,370

3,368,690

...

Dec.

2,109,985
2,279,233

3,340,768

Dec.

and

2,380,301

2,375,852

2,532,014

and
Part

2,792,067

—i

2,216,648

+ 20.9

+19.8

3,380,488

6__—_____

Dec.

carloadings and river shipments

(The current weekly estimates are based on railroad

windshield

2,365,859

2,816,358

3,313.596

;

.29-—.--—V

2,442,021

1937

3.355,440

Nov.

pro¬

3,273,375

Nov.

PRODUCTION OF COAL, BY STATES

WEEKLY

participating

3,273,376

Nov.

authorized

fuel.

colliery

ESTIMATED

shipped

coal

and

for

conservation

3,330,582

—

Nov.

+ 19.2

2.591,957
2,773,177

25..

Nov.

2,736,224

3,132,954
3,322,346

Oct.

145,800

dredge

1940

over

23____

22,214

and

1940

product

through
newspaper
and
magazine
advertisements,
radio
announcements,
window
cards,

+18.1

Oct.

4,305,000

155,500

—

♦1941

suggestions
the

oil companies

brochure contain¬

gram

2,743,284

7,040,000

1,202,000

2,762,240

4,798,000

production b._.l,041,000
total.—

distribute to all

ing

14.5

3,233,242

4,532,000

14.8

Kilowatt-Hours)

Change

3,263,082

1,190,000
1,131,000

Oct.

1,265,000

(Thousands of

.'i

9—

Sept.
3ept.

1,096,000

Includes

Week Ended—

7,586,000

1941

States

23.0'

Aug.

5,051,000

1942

average

15.8

Aug.

Feb. 2,

1941

Beehive coke—?

United

15.4

;

'21.0

be administered by the council's
marketing committee, which plans

:,V'

1941

Sept.
Sept.

Feb.

1942

Comm'l

1929

Jan. 31,

1942

16.9 V

14.3

-18.2

15.8

Aug.

Total, including colliery
fuel

24.8

•

16.2

DATA FOR RECENT WEJEKS

Oct.

Jan.

anthracite—

25.0

Aug.

.-".v;;

■

-Calendar year to date-

Week Ended

;

17.9

Aug.

PENNSYLVANIA ANTHRACITE AND BEEHIVE

PRODUCTIOON OF

mon

12.9

12.5

in the nation

6,906

vCOKE

Penn.

19.9

Total United States-,

ESTIMATED

11.0

13.2
■

as preferable to a con¬
campaign through a com¬
contributory fund.
It will

certed

16.4

% 17.5

purposes

companies

Jan. 17, '42

11.6

12.0

15.2

16.0 i

■

13.7 i

13.9

Coast

Jan. 24, '42

12.7

14.4

States..

Mountain

Pacific

J u

historical comparison and statistical convenience the
production of lignite,
b Total barrels produced during the week converted into equivalent coal assuming 6,000,000 B.t.u. per barrel of oil and 13,100 B.t.u. per pound of coal.
Note that most of the supply of petroleum products is not directly competitive with coal.
(Minerals Yearbook, 1939, page 702). c Revised. >
AA:/
a

Rocky

6,201

for

output

Includes

-v.

44,880,'

1,867

1,684

1,877

1,862

___.

petroleum b

Coal equivalent of

48,540

10,104

11,260

11,170

' 18. L

14.7

Industrial

Central

Southern

i—V.

„

Jan. 31, '42

17.6

Atlantic.,

Central
*

including mine

fuel

Feb.

Jan. 24,.

31,

1942

124,502,309

111,557,727

117,141,591

9,506,495

increasingly difficult

large withdrawals re¬
quired therefrom by the war effort,
.'"The estimated crude oil

of Jan. 1, 1941,
namely
19,024,515,000 barrels," the report
said, "can only be recovered if
reserves as

production rates
make

the

restricted

are

maximum

use

the

natural
Total bituminous coal—

11.260

11,325

9,931

10,363

9,570

11,850

d Pennsylvania anthracite..

1,265

1,232

1,257

1,425

907

1,968

12,557

11,188

11,788

10,477

Total, ail coal..
a
on

12,525

Includes operations
the B.

the N. & W.;

C. & O.; Virginian; K.

& M.;

B. C. & G.; and

& O.

Georgia.
*

the

Bureau

North

Less than

Carolina,

1.000

Mines,

and

Average

Soutn

weekly

rate

included

Dakota

for entire

with

"other

/ Alaska.

month.
Western

States."

tons.

oil

defense

the

movement

industry

centers

fuel

oil,

needed

tion's

East

Coast

•

the

East

Coast,

present

with

the

balance of the

heating

trend

sinking of more than a dozen ves¬ parently as a basis for
allocating
sels, including several tankers in future sales, if such action be¬
the past few weeks, plus the con¬ comes
mated net income, after interest and rentals, of
$500,545,671, accord¬
necessary.
Also, it was in¬
ing to reports filed by the carriers with Bureau of Railway Eco¬ version of an unknown number dicated that the tanker committee
of tankers
nomics of the Association of American Railroads and made
to military
use
has will act promptly to re-allocate
public
on Feb. 5.
This was the first time since 1930 that their income ex¬ brought about an artificial short¬ available
tonnage
among
East
ceeded
the half-billion-dollar mark.
In that year the net was age of fuel oil in the East, and to Coast suppliers as an aid to tho«e
a lesser
$523,907,472.
Net income,
degree, on the West Coast companies which have been hard¬
afterf
also.
interest and rentals., was $191,-' plies, and cash. The
Late in January, Petroleum est hit by the tanker losses
earnings* re¬
through
Coordinator ..Ickes said he
was
050,215
in 1940.
The Bureau's ported above as net railway oper¬
submarine attack.
statement added:
ating income, represent
the considering reviving the plans for
Although diversion of trans¬
the
Texas-East
Coast
pipeline
Operating revenues of the Class amount left after the payment of
portation facilities to movement of
I carriers in 1941 totaled $5,346,- operating
expenses
and
taxes, dropped last year because of the fuel oils vital 'to • industry and
steel shortage.
699,998, compared with $4,298:- but before interest, rentals, and
military needs of necessity would
other fixed charges
In the wire sent to fifteen oil
001,598 in 1940, and $5,280,234,535
are-paid.
*
sharply curtail available supplies
This compilation as to
: in
1930, an increase of 24.4% in
Assistant
Petroleum of gasoline, -no Government of¬
earnings companies,
1941
was
1941 above 1940, and 1.3% above for
based on reports Coordinator Davies, calling atten¬ ficial
would
comment
as *
to
,1930. Operating expenses in 1941 from all Class I railroads, repre¬ tion to the declining.-inventories whether or not the latest
PCO
amounted to-$3,664,175,018, com- senting a total of 232,192 miles, v of fuel oil in the East, said that
ruling was a forerunner "of ration*
Class I railroads in 1941
; pared with
$3,090,173,137 in.. 1940,
paid the PCO considered it "impera¬ ing of motor fuel for the general
and $3,931,043,991 in 1930.
$546,071,034 in taxes, the greatest tive" that the companies imme¬ oublic.
Oper¬
However, it is generally
ating expenses in 1941 were 18.6% amount in any year oh record. diately. convert all tankers and held .in Washington that not only
The Class I railroads of the United States in

1941

had

above

Net
before
1941
a

1940, but 6.8% below 1930.
railway operating
interest

and

income,

rentals,

amounted to $999,502,930,

return of 3.79%

property in¬
vestment, comnared with $682.•543.218,
or
2.61% :in. 1940, and
$868,719,483, or 3.36% in 1930./
,

Property
value of

investment

road

and

is.

equipment

the

including
*

materials,

amount-!

' t'C U' -i

'J--*'

upon

$33,606,345, an increase of
$6,797,495,; or 25.4% above De-

each company, "to act accordingly
as
to all movements under your

action

cember, 1940.

control and at once."

ties.

Twenty-eight Class

railroads

failed to
in

earn interest and
rentals
1.941, of which seven were in

sup¬

indicated

abandonment

.;/••

increased

be drilled

must

are
con¬

the

same

number

order

amount

formerly.

(e) That premiums granted dis¬
wells in the form of in¬

covery

creased

allowables

are

incen¬

tive to exploration.

(f) That retention v of

present

statutory percentage depletion al¬
lowance

is essential to

objectives.r
The
if

Vv "

the

above

\ r---

V',

report disclosed that

even

unrestricted

production
present reserves

permitted,

not be made to
duction

were
can¬

yield all their

pro¬

the

over

period of years
by the ratio of current

indicated

withdrawals' to total reserves. *

prudent practices are followed, it
continued) withdrawals from pres->
Their tax bill in 1940 was
facilities gasoline but other petroleum prod¬
$396,r other, transportation
ently known reserves will follow
623,016 and in 1930 it was
$348,- scheduled to move gasoline to the ucts will be rationed to the motor¬ a pattern of gradual decline toward
536.962.N For the month of
East Coast possible to the move¬
De-,
ing public within the near future. marginal well
productivity and
cember alone, their taxes
ment of fuel oil.
He called

the Eastern
District, four in the
'shown by the books of the rail¬ Southern
District, and 17 in the.
ways

the

without waste.
is

increased

discover

oil

have

for

indicated

wells.

of wells

;

small

na¬

reserves

meet

(d) That

esti¬

?&£

the

trend

new

four years.

season, ap¬

re¬

council

reserves

sumptive demand

inventories

shipping off the and market requirements for the

hazardous

(b) That

with

oil

declining

needed

reference

the

additions

known

past three

by the Army, Navy and

supplier in
coast-wise

shown

thet>:

The submarine threat which has
made

approved

(a) That

shortage of fuel
they immediately con¬
transportation facilities for gasoline and like prod¬

East.

Mark In 1941, First Tims Sines !§39

port
were:-

the East Coast made it imperative that

vert all possible

reservoir
energy
in the
constituting this reserve."

The six points listed in

The shadow of rationing of gasoline fell over
civilian motorists
in the Atlantic Coast area this week as
the Office of Petroleum Co¬
ordination notified all major oil
companies that the

ucts

Net Of Olass I Roads Passed Half Billion Dollar

fields

Petroleum And Its Products

13,818

in Kanawha, Mason, and
Clay Counties,
b Rest of State, including the
Panhandle District and Grant, Mineral, and Tucker Counties,
c Includes Arizona. Cali¬
fornia. Idaho. Nevada, and Oregon,
d Data for Pennsylvania anthracite from published

records

•

■

TONS

the

•

ESTIMATED

Defense.- The (program,
approved by the Committee at its
regular monthly meeting in the

industry

NET

Council, until now known as
Industry Cbuncil for

the Petroleum

Institute, in its current weekly report, esti¬
conference room of the PCO, was
production of electricity by the electric light and
highly praised by Petroleum Co¬
of the United States for the week ended Feb.
7, ordinator Harold Ickes. A
special
1942, was 3,474,638,000 kwh., which compares with
2,989,392,000 committee of the
kwh. in the
council, headed
corresponding period in 1941, a gain of 16.2%. The
by W. Alton Jones of New York
output for the week ended Jan. 31, 1942, was estimated to be
3,468,City as chairman, prepared th$
193,000 kwh., an increase of 15.8% over the
corresponding week outline of the national
in 1941.
program.
-• •
v-VVV
: v
v v-v :-vy
;;yy
The committee urged a volun¬
PERCENTAGE INCREASE OVER PREVIOUS YEAR
tary program by individual oil
-Week Endedthat

power

Production in the corresponding week of 1941 amounted

10,104,000 tons.

War

National

The Edison Electric

mated

vania anthracite for the week ended Jan; 31 was estimated at

Output For Week Ended Feb. 7, 1942,

$hcws J6.2% Gain Over Same Week In 1941

stated that production of soft coal showed

little change in the week ended Jan. 31.
The total output is estimated at 11,170,000 net tons, as a against 11,260,000 tons in the preced¬

Thursday, February 12, 1942

Western District.
ii

—

it:

-■

The

industry adopted

two

the

ac¬

difficult
can

-see

how

such

continue at that rate

be avoided in view of

tightness

Simultaneously

tions designed to meet the situa¬

version order

tion

transport facili¬ additions
with

rapidly

the

con¬

'
,

outlined

Mr.

Davies.

The industry's marketing commit¬
tee launched a detailed survey of
the individual oil

position of each
t

•

came

the details of

nationwide program to encourage
civilian conservation of petroleum

over a period
"The declining rate of

of yearsk
.

;

total,

reserves

approaching

the

amount

currently being withdrawn as production,'* the reportsaid, "and un¬
less

this

downward

versed, the total of

trend

re-

discoveries
products outlined in a report made and revisions and additions to old
public by the Petroleum Industry fields can be expected to fall be,

new

•

• •

)

•

Volume

Number 4045/

155

•'

low

annual

ments.". V;.
'With

oil

crude

require¬

Texas

providing

again

most of the

change, daily average
crude oil production for the United
States showed a jump of 463,095
barrels during the initial week of

■'

THE COMMERCIAL & FINANCIAL CHRONICLE

-1-

'•

'. *

■

....

The rail movement reached
of
or

5,125

the

tain

total

604,188

blue

cars,

4,396

against

cars,

were
repaid from Jan. 1,
1941, through Jan. 24, 1942.
Repayments were made on 63,-

loan

movements of only
560 barrels of crude oil during the
entire month
of January, 1941.

against total

141,300 barrels daily, the previ¬

high, set last October.
There were no major changes
February, rising to a new peak of
4,331,395 barrels, "The Oil & Gas in the refined petroleum products'
Journal" reported on Feb. 10. The price structure posted during the
former high of 4,329,365 barrels week.
ous

corn,

local

bushels

under,

pledged?
and

1938-39

farm

608,187
There

remained

total of

resealed

and

storage,
bushels .> of

under

1940

161,971 loans

stores

stamps.

The

•

ber of

complete list of foods for

set

with

last

only

November.

Texas,

shutdown

one

day,

snapped back to show a spurt of
461,400 barrels in daily average
crude production.

California was
only other major oil producing

the

State

Stocks

higher flow.
domestic and foreign

report

income

31,010,

all

■i

10.3%, and the number of

re¬

stamp program

areas,

turns

crude oil in the nation

Jan. 31

decreased

with

income

net

the
net.

data

corporations) de¬
3,126, or 6.3%. The net
net income for (declared value)
excess-profits tax computation
increased $2,300,733,772, or
35.3%, and the deficit decreased

■

$7-30,950,192,

26.7%. The in¬
$362,872,361,

tax increased

come

42.5%, the (declared value)

•;

excess-profits tax increased $9,-

—

17.4%,

(inactive

—

29,595,

of returns with

creased

returns with net income

creased

;

de¬

num¬

number

is as
follows: Butter, all cuts of pork
(except that cooked or packed
in" metal; or glass containers),
U.
S. Gasoline
(Above 05 Octane), Tank
Prices Fixed For New Cars
fresh grapefruit, pears, apples,
Car Lots, F. O. B. Refinery
Price Administrator Lepn Hen¬
New York— ■.J, ;v■
oranges, * and
fresh vegetable^
Secony-Vac
$.088 derson announced on Feb. 2 max-, V (including potatoes), corn meal,
Tide Water Oil—
w-J— *
.088
imum wholesale and retail prices
shell eggs, dried prunes, homTexas
' .088
"Shell Eastern
—'
.088 for new passenger cars which may :. iny
(corn), grits,
dry
edible
be sold to eligible purchasers un¬
Other Cities—
beans, wheat flour,
enriched
Chicago
" ,06-.06% der the automobile rationing pro¬
wheat flour,
self-rising flour,
Gulf
Coast
.06-.06
enriched self-rising flour, and
gram planned to begin about Feb.
Oklahoma
.06-.06%
26.
The schedule, effective Feb.
whole wheat (Graham) flour.
"Super.
-

returns

0.9%, the

1 through Feb.

was-

of
or

(declared value)
excessprofits
tax
computation
in¬

■

4,541,

for

187,173,-

816 bushels.

number

creased

28, as issued by the Surplus
Marketing Administration k for

corn.

outstanding

"blue

the period Feb.

42,-

total

can ob¬
stamp" foods in
in
exchange for

stamp program

the

2,576,000 barrels above the
previous week at 250,470,000 bar¬
were

rels^. the Department of the In¬
terior

this week.
Do¬
holdings were up
2,661,000
barrels,
with
foreign
crude holdings dipping 85,000 bar¬
reported

mestic

crude

rels.

kerosene,

for

sales

domestic

2 to Price Schedule

ment No.

Baltimore

Philadelphia
North
New

and

derson

04%-.04%

Industry War Council.

were

changes

price

Diesel

Gulf Coast

Barrel At Wells

$2.75
1.31

—

1.70

Illinois Basin

-——

—

——

Smackover, Heavy
Rodessa, Ark., 40 and above
East Texas, Texas, 40 and

N. Y.

Kettleman

Wyo.—_

Signal Hill, 30.9 and over-

developing,

markets

will

continue

first

dates

1.23

due

tional

needs

that

the

concern

which

this week acted

oil

of fuel

movements

to bolster
from the

stocks are ac¬
East Coast

Gulf Coast, where

cumulating, to the
where
they * h a v e

diminished

steadily under the twin influence
of heavy demand and submarinecurtailed deliveries.
While

fuel

oil

are

generally

felt

action of the PCO

seen

With

months

Prices will be

fixed
the

prior to the

developments.

delivery of
buyer. All

the

be submitted

must

the

form
'

specified by Commodity
Credit Corporation.
The sale of cotton under this

the

sales

for

export
program, and the sales for new
uses program will be limited to
program,

bales in any calendar
1,500,000 bales for
"the calendar year 1942.
Sales
by Commodity Credit Corpora¬
tion during January, 1942, ex| elusive of cotton sold under the
Lend-Lease Act, totaled 298,934
300,000

and

month

Those
:

interested

the

pur-

chase of this cotton should

re¬

the

quest

Regional Office of
Commodity Credit Corporation,
New

Orleans,
with
and

La., to furnish
specified bid

the

detailed

ditions

the

sale.

.
.

con¬

Repayments

Corporation

Commodity
had
made

Credit

57,259
59,588,957
bushels of 1941 crop corn through
Jan. 24, 1942. Loans made to date
have
averaged
73
cents
per
loans for

$43,514,319

the industry is
adapting itself to the war-time
bushel.
operating conditions facing it on
The
Agriculture
Department
the East Coast is shown in the
Ickes report that it moved a rec¬ also reported on Feb. 3 that 100,ord 164,700 barrels of oil daily 599 loans made by the CCC, rep¬
106,212,375 bushels of
to the East by railroad tank car resenting
1940 corn and 1938-39 resealed
during the final week of January,
How

quickly

Lend-

also

served

than

total.

The Secretary

cash

twice

the

December

reported that
receipts at the Treasury from

the sale of Defense Bonds in Jan¬

reached a total of $1,060,547,000.
This record figure for a
single month compared with sales

uary

$528,599,000 in December

and

almost four times the average

was

of the

months preceding the
States' entrance into the

seven

United

The

war.

the

January sales boosted

total

receipts since May 1 to
$3,597,757,000.
Mr.
Morgenthau
said that the January sales met

Ameri¬
Association,
the

almost half the cost of the

fort for that month.
noted that

war

ef¬

It should be

large part of the Jan¬
were
done
by
the

sales

uary

wealthier purchasers who bought
the limit for the whole year. The

York.

the

Savings Bonds in
exceeded $1,000,000,000,

the Merchants Association of New

legal limit
bonds

Income Data For 1939

the sale of Series E

one

is $5,000

year

Series F and G bonds is

000.
V

sales of Defense

January

Chamber of Commerce and

U. S.

and
$50,'

■

Secretary of the Treasury Mor¬

genthau has made public the first
of

series

"statistics

tabulations

Income

for

Henderson Confirmed As

from

1939,

Price Head

By Senate

Corpora¬
The
Senate
on
Feb.
9
con¬
Value)
sales, together with the cars
firmed President Roosevelt's nom¬
Excess-profits Tax Returns and
produced by the industry in
of
Leon
Henderson
as
Personal Holding Company Re¬ ination
January, number in excess of
administrator of the Emergency
turns," prepared under the direc¬
500,000.
tion of Commissioner of Internal Price Control Act of 1942, which
Roughly 25% of this amount
recently became law.
The action
Revenue Guy T. Helvering.
is being stockpiled for sale in
was
taken
without
debate
and
The Secretary's announcement
1943 and "after.
An' undeter¬
without a record vote. The Presi¬
explained:
mined number will be released
automobile

Part

Compiled

from

tion Income and (Declared

•

Jan.

tabulations are, in

31, 1939.

The remainder will

tificates.

General

rationing

able

r
/

and

mobile

who

dealers

compelled

schedule

hold

cars

months.

sets

auto¬

will

for

Today's

maximum

prices

that

give dealers a reasonable
profit and provides for special
compensation to offset the deal¬
ers' costs of storing cars against
release to eligible buyers.

February Food Stamp List
Department of Agriculture

foods

which

Jan.

29 the

will

list

;

available

The

February food' list,

con¬

taining the same foods as the
January list, will continue to

partici¬
pants with a wide choice of
nutritious foods such as pork,
butter
and
eggs,
and - fresh
supply

fruits

stamp

and

varieties.

program

vegetables-^ many
Families

taking part

Feb.

5, page 584.

nomina¬

Feb.

Mr. Henderson,

who is from New Jersey, has been

head

the

Office

Price

Ad¬

of the Execu¬
tive Office of the President, since
its
creation in April,
1941 and
prior to that had headed the Price

ministration,

Stabilization

part

Division

the

■

old

data

income

(inactive cor¬

The New York Stock Exchange

porations). The income tax is announced on Feb. 4 that the total
$1,216,450,292,
the
(declared of money borrowed as reported
value) excess-profits tax $15,- by Stock Exchange member firms
805,962, the total tax $1,232,256,- as of the close of business Jan. 31
254. Tl)e total amount of divi¬ aggregated
$324,558,799,
a
de¬
dends paid in cash and assets crease of $64,042,495 as compared
other
than
corporation's own with the Dec. 31 total of $388,601-,
stock is $5,746,738,970, of which 294.
The following is the Stock
Exchange's announcement:
The total of money borrowed

$184,465,848 on returns with no

during February for the purchase

families tak¬
ing part in the Food Stamp pro¬
gram.
The announcement states:

the

2, fol¬
lowing his signing of the Act as
we
reported
in
these
columns

$5,562,273,122 is reported on re¬
turns
with
net
income
and

with blue stamps by

submitted

returns for which the National Defense Advisory Com¬
part of the accounting mission.
Under his new powers,
period falls in 1939.
Mr. Henderson is authorized to
The number of corporation fix
price maximums on selected
income
and
(declared value) commodities
whenever
he
be¬
excess-profits tax returns for lieves prices are excessive and
1939 is 515,960, of which 199,- threaten the war
production pro¬
479 show net income for (de¬
gram.
He also has power to con¬
clared value) excess-profits tax trol rents in defense areas.
computation
of
$8,826,713,029,
while 270,138 show a deficit of
NYSE Borrowings
$2,092,147,535, and 46,343 have

conditions, OPA

recognizes the plight of

returns for

had

greater

against exhorbitant
at the same time

buyers

dent

tion to the Senate

year

feels it essential to protect new

prices,

However, a consider¬

number

other than the cal¬
endar year, ending within the
period July 1939 through June
1940, are tabulated with the
calendar year returns for 1939.
There are also included part-

expected to begin in about three

car

year

fiscal year,

weeks.
Under these

calendar

the

be sold

during the current year
to
eligible
civilian
buyers
against certificates issued by
local rationing boards, and to
categories of buyers such as the
Army and Navy, who are not
obliged to obtain purchase cer¬

by these
general, for
ending Dec.

The returns covered

Feb. 12 to persons
who
had
purchased, but had
not obtained delivery, of cars
beginning

The Department of Agriculture

that

1, when

froze

Government

The

reports

Jan.

Averill Harri-

Sales

.Secretary of the Treasury Mor-;
genthau announced on Feb. 2 that

of the New York State

Bankers'

can

remain¬

cars

Pierson

Mr.

man.

max¬

cars

new

announced

Corn Loans,

set

Government

the

President

information

concerning the terms and

Defense Bond

Mr. Pierson retired in midJanuary from his activities with
the
Irving Trust
Company,
of
which, for over 43 years, he was
successively
Cashier,
President,
Chairman and Honorary
Chair¬

passenger

new

Those

weeks

bales.

form

only

cotton

them

about two
before the
normal seasonal slump develops in
the heating oil market, it is rea¬
sonable to assume that the East
Coast will be able to meet de¬
mands
between now
and then
without letting gasoline consumers
down too heavily, barring unforsituation.

February

New York May

it
the quick

that

during
on

will relieve the

breaking pace of consumption,

right to fix

future contracts.

East Coast stocks of No.

reported too close
to the levels existing a year ago
in the face of the current record2

Sales

price.

will be based

'
•

call with seller's

Petroleum Coordinator

hands

limitation

All bids must be made

mitted.

of the

chief

the

within

ap¬

ing in dealers' and distributors'

of the

quantity specified in Sec¬
(c) of the Agricultural
Adjustment
Act of
1938,
as
amended, will be made to the
highest bidder, subject to, the
right of Commodity Credit Corj. poration to reject any bids sub¬

need

for

associate of

man

under present circumstances
He added:

terial.

tion 381

Coast,

Office

the
addi¬

been

Lease effort in the British Isles.

being discontinued to permit
complete conversion of auto¬
mobile plants over to the largescale production
of war ma¬

partment, which also had the fol¬
lowing to say:

the East

information,

"the

prices

Production

bids, according to the De¬

bids

vital to
Army and

oils,
and

fuel

that

is obvious."

Regional

consideration

Sales,

above, it is inven¬

plants

such

for

has

said

consideration

for

bids will be Feb. 16. The

well.

mand holding up

Navy

date

Pierson

Lewis E.

Bankers' Association, the

cars

Coast, prices in both the bulk and
retail markets are firm with de¬

from time

be invited

•

cannot

las, who leaves the Defense Sav¬
ings Staff to serve in London as

imum

rationing will mean curtailed de¬
mand for motor fuel. On the East

tories

for the

Bids

prices

(2) the actual railway freight
charge; (3)5% of the list price
plus the transportation allowance,
or $75,
whichever is lower; and
(4) of 1% of the list price, or $15,
whichever
is
lower,
for
each
month that elapses before the car
is sold.
The 5% or $75 charge is
to cover the cost of handling and
delivery and all other services
customarily performed by dealers.
In a statement accompany the
price schedules, Mr. Henderson

specified dates, said the Depart¬
ment, which indicated that the

part to fear among some re¬
automobile

defense

Program

of Agriculture

announced
on
purchase of

program

cotton will

finers that the tire and

As outlined

.03%

Credit
Corporation
the general cotton

Commodity

quested

Coast and midcontinent

Gulf

has announced the basis on which

1.25

Easing off in gasoline prices in

bulk

—.

Cotton Sales

0.83
1.20

0.95
1.12

County, Texas

43.4%.

Savs.

York
Defense
Savings Staff, it
period Oct. 1 to Oct. 15, 1941.
In determining the maximum was announced by Colonel Rich¬
retail price for new cars, the or¬ ard C. Patterson, Jr., Chairman
the State organization. Mr.
der provides that the dealer takes pf
the manufacturers' list price and Pierson will take over the post
adds: (1) the Federal excise tax; formerly held by Lewis W. Doug¬

poration at New Orleans, La., will
notify
persons; who
have
re¬

1.29

——.-

Pecos

.053

28.30

The Department

and

37.9

Hills,

over

Lance Creek,

$.04

7 plus

(Bayonne)

1.37

1.25

above

tax

Heads NYC Defense

exceed pointed by Secretary of the Treas¬
the highest prices charged for the ury Morgenthau as Chairman of
the Metropolitan Area of the New
same make and model
during the
Wholesale

Office of Commodity Credit Cor¬

Mid-Contin't, Okla., 40 and
above

or Terminal

GaS, Oil, F. O. B. Refinery

1.22

Illinois

Eastern

base and specifies the various
charges which the dealer may add.

to time and will be considered on

(All gravities where A. P. I.
degrees are not shown)
Bradford, Pa.
Corning, Pa.

.85

—

Halifax

Jan.
Prices of Typical Crude per

2.15

-—

C——1.30
1.35

Bunker

Savannah,

Philadelphia, Bunker C.

sales

issued this week.

$1.35

(Harbor) Bunker C

Hen¬

representatives of the

Petroleum

There

Mr.

between

4.25-4.625

—

Oil, F. O. B. Refinery-or Terminal

Fuel

—

the

.04

Texas

petroleum
and
petroleum Chicago,
products, Leon Henderson, Price Tulsa
Administrator, announced in
Washington
on
Feb.*
8.
The CCC
amendment was issued following

;

.054

___

Orleans

for

conference

2, establishes retail ceiling prices
by using, the factory list price as

164.0% and the total
increased $372,690,687,
or
or

(Bayonne)
$.053
J—,054

New York

petroleum products in contracts
signed prior to Nov. 10, last, and
for export sales of these products
covered in contracts signed prior
to Jan. 20, last, may be retained
until March 1,1942, under Amend¬

Tulsa

Prices

Water White, Tank Car,
B. Refinery

41-43

818,326,

from

net income.

and other lenders in the United

the

199,479 returns with
(declared value)

banks,

companies

trust

borrowings

excluding

States,

net income for

from other members or national

excess-profits tax computation,

securities exchanges reported by

170,380 show only income tax
liability, 49 show only (declared
value) excess-profits tax liabil¬

New

ity, 26,122 show both income tax
and
(declared value) excess-

gated $324,558,799.

,profits..tax„Rabilities.^Ms.2J928
compared with

Stock

firms

of business Jan.

Exchange
the

31, 1942, aggre¬

The total of money borrowed,

compiled

the

same

basis, as

of the close of business Dec.

show no tax liability.
As

York

member

1938, the

1941, was $388,601,294.

31,

686

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, February 12, 1942

and India, but just what mand at Batavia, with typical and while week-end
reports indicated evacuation of Gibraltar was in
signifies in the strange ways admirable Dutch honesty, admit¬ that the large Swedish merchant¬ progress.
of the East remains to be deter¬ ted that Japanese raids against man
Observers in neutral Switzer-.
Amerikaland, and the U. S.
the main naval base at Surabaya tanker; China
mined.
Arrow
also
had land gained the impression that
occasioned
considerable damage. gone down.
The German radio the German Nazis were preparing
Bataan Peninsula
They also made it evident that previously
had
reported
the frantically for a gigantic Spring •
Heroic though the defense of airfields
were
blasted here and Amerikaland sunk, according to drive
toward
the
Middle
East,',
Bataan Peninsula has been, there there
by the enemy. This fort- an account in the New York with the oil of the Caucasus and
were
signs this week that ex¬ right attitude made it clear that
"Times" of last Sunday, and also the Mosul field the real aim. The:
haustion
is
overwhelming
the heavy
reinforcements
must
be mentioned sinkings of the Empire German
Air
Marshal, Hermann
ranks
of
Gen.
Douglas
Mac- sent to the East Indies
without Wildebeeste,
the
Traveler,
the Goering, spent several days in.
Arthur and his United States and
delay, if the Japanese are to be Tacoma Star and the Trontolite. Italy, late last
week, conferring
Filipino soldiers;
Enormous' re¬ prevented
from
occupying
the
with Premier Mussolini and other
British
Burma

Foreign Front

this

(Continued from First Page)
of

the

issue.

The

bastion

great

Singapore seems destined to
Japanese hands.
Nothing is to be gained by
minimizing the importance of that
circumstance.
More particularly
fall into

than

even

the

and

the

concurrent

Netherlands

events

Indies

East

the

Philippines, it threatens
the position of the White Man in
the Orient.

the

inforcements

No conceivable event

could

cost

in the Far Pacific than the

Singapore, and the course
history will veer sharply in
consequence
if the
defeats 4 at
Singapore and elsewhere are not
rapidly offset. Even the Chinese,
who
have
been
battling
the
Japanese stoutly for more than a
decade, recently served warning
of

they

sider
fell

and

have

might

their

Road

Burma

the

MacArthur

to recon¬
Singapore

attitude

000

British

who

marched

believed

for

ample

tracted

defense,

the

clined

they

was

landings
have

strength¬

rapid

set

their

difficul¬

indicated

afire, to keep the
gigantic

naval

The

away.

island

apparently

doned,

since

could

guns

aban¬

was

the

Japanese

prevent

destruction

was

visited

The

grim

the

its

use,

doubtless

the

upon

base.

determination
all

fleeted in
But

the

front

the

ag¬

without

costs

was

engage¬

big

along

guns

the

Shell¬

Still another unfavorable aspect
the
Philippines
battle
was

The

developments,
in short, foreshadowed an early
end of the valiant defense, which
far exceeded the expectations of
military experts in the United

re-

of dispatches.

scores

Japanese crossed first

States.

to Ubin

All

that

General

Mac-

Island, at the eastern en¬ Arthur
could accomplish, in the
Strait, and then
given Circumstances, was to delay
landed in force on western points
the enemy, and more than two
of Singapore Island, where man¬
months of superb defense have
grove swamps and jungle growth
attested the spirit of our forces.
trance

to Johore

them

gave

night

some

for

cover

operations.

their

drive

lands

authorities, who

islands.

ently

our

course,

intensify

are

their

appar¬

than

East

Australians

Indies

As in other regions of the Far

the

confidence,

the

Philippines hardly en¬
optimism as to defense

of the

East

tack.

released

are

for

could

not

dis¬

lodge the invaders. Steadily and
methodically the Japanese con¬
tinued

penetrate

under

British

dominance.
and

men

and

Australian

than

two

have passed since

nese

attacks, it would

much

of the

submarine

hand

strength
the

Immense

ships

losses

suffered

were

the

conceded

was

Nor

tion

the

was

Burma

favorable.

posi¬

principal islands of the East In¬

dies

British
much

After

long

and

continued, and
points captured by
was

the

costly attempts, the Japanese

vaders

resumed

supply

Burma,

their

advance

the

over

last

week¬

-end, and managed to make
crossing
land

River,

ween

from

mein.

the

broad

some

the

The

threaten

lines

off

the Japa¬

sort

ought

United

Some

fighting

seem

these

Few

in the

Nations

Coast

fast

ships

action,

inadequate,

but

are

it
is

tire

changes occurred this week
military situation along the

action

and

widely

Japanese

Command

with great

Saturday,
Fleet
had

that

nese

the

Asiatic

United

the

been

Nations

engaged

warships,

two

also

damaging

third

American

denied

Nations.

The

the

Dutch

other

and

that

the

that

battle, and
other damaged.

Mediter¬

attack

gigantic strug¬

impression
the

the Axis.
of

Amboina

the

has

basis

situation

the

Atlantic Sinkings

which

withdrawn

was

from

the

Russian theater early in the win¬
ter.
Sharply
intensified
diplo¬

Atlantic, and the matic negotiations between Wash¬
by
German
sub¬ ington and the Vichy regime in
marines continued in the mean¬ unoccupied France may also find
The

losses

include

now

their

real

explanation

this

the former French luxury liner prospect,
since French African
Normandie, which was partially territory would be vital for the

pushing

Java,

port

ner

and

terminus for the Burma Road.

doubtless

Chinese

the Japanese
sweeping gains,

because
also

the

raided in the
suggested

man¬

Japaintent to "soften up" the
an invasion attempt.

nese

the
in the

Macassar, at the southern tip
of Celebes Island, and Bandjermassin, on the southern:
coast

Generalissimo,
Chiang
swiftly journeyed to

of
Borneo, were
at¬
tacked and presumably occu¬
pied. In New Britain Island,
far to the east, the Japanese

the British Indian capital of New

extended their gains, and will

Delhi, Tuesday, where he engaged
in long conversations with Brit¬

control

sort

fighting

varied Far Eastern terrains.
Chinese

Kai-shek,

ish and

troops
vast

Indian officials.
were

reported

numbers

to ] #ie

The

res

and

defense, of

Chinese

moving

lost. The

The

able

from

that

point

shipping through Tor¬
Strait, between Australia
New

Guinea.

Netherlands

High

was

submarine

collided with

another American naval vessel

Loss

dominates

the

will

that the claims
If

and

The

war.

was

taken

States

83,423

over

last

being

was

exaggerated,

precise
t:

by the;

;

December,;

converted

according

ing

large

were

the

career.

ship

forces

work¬

vessel

Early

turned

for

her

new

Tuesday the

slowly

her

side and rehabilitation plainly
will

long and laborious

matter.

combat

area

somewhat

appears

uncertain,
maneuvers

of the mechanized forces

over

great stretches of desert. Some
this week that the Axis drive
had

offi-;

engaged in ready-1

The

f British spokesmen said early

to
ac¬

accounts,
and
spread
rapidly in the superstructure,

to-

Tobruk.

owing to the vast

cial

while

ington

dispatches,

week,

been

halted

British

last

conceded

was

that

Russia

three months

war

ma-

the
less

were

last

than

half of the promised supplies.
Britain was said to be keep-

ing much

to schedule

nearer

in the shipment of equipment
to the Red Army.-

Russian
from

units

Moscow
the

over

reported;

were

pushing

on;
of the forests and •

snows

plains toward the former Russian

frontier

with Latvia.
Smolensk r
said* to; be virtually in the>
grasp, of the Red forces, and the c:
environs of Kharkov were re-:
Was

ported reached.
made to
from

A vast effort

grad. V Cavalry
stood

was

dislodge the Reichswehrh

fortifications
the

and

Russians

these

Lenin-r

near

;

ski S troops *

maneuvers,

Extraordinary losses

good stead;
it appears.)
visited'

were

the Germans in all engage-:
ments, Moscow added, and the •
upon

the

occupied
turned

were

near

provinces

Three

Russian

these

informed V
when

will

the

re-r

sovereignty.'

provinces

were

Tuesday to have been en¬
tirely cleared of German forces.

•

said

German

announcements

the'

fighting
remained
extremely'
brief, but. claims were advanced?
on

occasion

units, while others said that it

of Red

had "spent

are

just

late

deliveries

our

terials

hour

from

can be advanced
in the United States. In Wash-

people

miles

criticism that

that

claims

there

Russian

for three weeks, and
currently reported some

both

in stento¬

justified.

are

Russian

are

ton

Fire started

uses.

cidentally,

men

has been in

the

progress

be'

temporary,
is
the
greatest
single merchant shipping loss

| vessel

now

ad¬

;

tones, however, that the Red
Army is beating back the Ger-'
mans
rapidly.
It is to be hoped i

Normandie,

presumably

the

which

vance,

their

operations

Moscow asserts

which

continued

columns

it surfaced.

city for

seasoned

adepts
required

are

was

that

were

claim

direct

United
'

significant,

military

Rangoon,

Only in China

the

in¬

anese,

claimed

unable

from

equally

actually,

rian

Western

torpedoings

not

heavy fighting continues. The

sides.

estimate

correct,

claims

informative than the;
German
announcements

front apparently is
fluid, and the
deep winter weather probably

■

If the British

and

laconic
that

been

the
answer
thus is supplied to the
question of the recent disposition
of the German air force, most of

an¬

Untoward events added sharply
in recent days to
shipping losses
suffered by the United States in
the

are

ity, with the voluminous Russian-

reliable

regarding troop, air¬
plane and other concentrations of

sunk

information

claimed,

was

against all United

If such

this

gained

United

hand,

Japanese cruiser

units

London reports emphasize that
likely to stage a huge
Spring offensive against Gibraltar
and Suez, and it may be assumed

cruiser.

the

strike

the Axis is

Knowledge of this action has
been

assem¬

;

sank

on the'
Europe cur ¬
veiled in deep obscur ¬

rently

battlefronts of the

cruisers,

developments

Brit¬

gle.

Japa¬

which

Netherlands

while

claimed

Brit-;

vast front in Eastern

develops
it will, of course, lift the Northern
African
front
.into
immediate
prominence as one of the decisive

circumspection, last

Reich and Russia

Military

en¬

much

ranean.

King

$2,500,000.

West

from

Nations

reports of recent clashes. The

Haile Selassie with

peror

reports

bled

loyalty

ish advance of

and Italian force has been

divergent

the

was :

asser-:

treaty announced in London last*
week, which also provided Em-'

ish spokesmen made no secret of
their belief that a vast German

yet.

that

British

open

the Middle East.

Africa to

would

terribly

French

region

re¬

Another mystery of the Pa¬
cific war is posed by naval

and Surabaya was at¬
tacked again and again from*
the air.
Batavia, capital of

port of Moul-

vital

of;

was-

trates in the courts and otherwise;
are
to hold the
reins, under a;

Africa

of conflict to include the

area

in progress.

now

that the number

United

toward

the

of the Nether landers in
the East Indies, fell to the
Jap-,

Mediterranean

of Ethiopia the British are to main¬
tain
military
missions,-; magis-;

battle

base

yesterday
which

bombing-

fortress

Farouk is not above suspicion. In.

concen¬

Atlantic

Northern

tions

German

was

fronts in Northern Africa,
posts in the Far East.
Pursuit
but there were obvious expecta¬
planes have to go by way of mer¬
tions everywhere of new develop¬
chant shipping on the
high seas,
and they are indispensable for the ments which might widen
this

some

Amboina, the second naval

Sal-

rapidly

the

States to the defenders.

20 miles in¬

enemy

the

attended

as¬

America..

months

appear that

reinforcements

that

was

the ad¬ f is obvious, in the light of the"
in mission
last Saturday
that our 4 remarkably swift recovery by
the German
General
Erwin
by submarine, S-26, had gone down
ac¬ off Panama, Jan. 24, in an unfor¬ I
Rommel of ground lost to the
but tunate accident, with all hands 4 British
Empire
units.
Axis

island, the invaders, according to all
London, counts of the United Nations,
yesterday, that the defense could this did hot deter the men from
not long be maintained.
Nippon.
The drive toward the
and

Aerial

island

the British. The Cabinet crisis

said

was

going well, and it

trated

Since

aerial

sumed

at¬

now

Indies, if fresh Japa¬

forces

nese

Breat Britain the battle

•

defenders

British

continued

against

infiltering
hordes. East, the Japanese this week con¬ burned at her pier in New York Axis effort..
airpower of the in¬ tinued
their
advances
in
the harbor Monday, and finally turned
That
German and Italian
vaders came into play as daylight Netherlands East Indies and the on
her side and settled into the I mechanized units in Africa
returned, and the greatest efforts islands to the eastward which are mud.
Less
have been heavily reinforced
spectacular,
but
the

officials.

the

the public into
Malta
admitted much

But the vast

Italian
of

accustomed

to taking

own

Indies

while.

held the sector and beat savagely

against

the fall of

ported
artillery

MacArthur.

Empire units to hold the

island

tried

known last Friday,
when
publication
was
permitted
in
Washington of the news that the
incorrigible rebel, Emilio Aguinaldo, was acting as a "sort of
Philippine
Quisling,"
and
was
endeavoring
to
persuade
the
Filipino scouts to desert General

and something of a "scorched

earth"

infiltration

made

the Strait side of the

retreat

enemy

base

re¬

less is intended to hamper any
to Corregidor.

succes¬

Strait and

Johore

are

ing of our island forts in that
Bay is reported, and doubt¬

were

sive reports that oil had been

poured

both

shores of Manila Bay.

aware
was

forces

although

emplace

final

That the British units

ties

Thrusts by

ments indicate that the Japa¬
nese
also have been able to

lethal stroke.

well

the

against

behind

been

Heavy

expec¬

and

their

are

success.

Jo-

over

day, with the obvious
of

nu¬

island defenses,

plunged

hore Strait in force, last Sun¬
tation

method

gressors,

await the

ening of the
and

our

not in the least in¬

were

the

also is being attempted. Even

held inevitable. But the Japa¬
nese

nese

relief

4 for the besieged island

that

recent

ported, and the favorite Japa¬

pro¬

in¬

offi¬

most

Japanese

flanks

were

and

admits

the

defenders.

weary

the

across

out

invading troops
heavily against

bearing

troops

from Malaya

causeway

merous

The 60,-

Empire

chain

It is bitterly
evident,
that the Japanese will

courages

communiques,

Singapore
regarded

not

was

unfavorable.

too

hold

cannot

Washington
cially,

defenders

rich

and

Up to the end of last week
the position of the

the

gallant forces.

were

closed.

•

the Nether¬ concern over the sizable sinkings
by the Axis without 4
^immediately upon of ships on the Western side of abatement.
¥
*
.«
'
\
; British
dominance of much of;
Singapore and Bataan the Atlantic.; Sinkings of United
definitely
withofit
reinforce¬
Peninsula.
Africa was attested,
If the great British Nations
meanwhile,;
w#ssels; Were estimated
ments of his own.
Nor were there
and American bastions are taken
by London to have exceeded in by several incidents in Egypt and >•
indications of fresh men and sup¬
by the enemy, vast numbers of January the records of the
Ethiopia.
Cairo, [ the
Egyptian •
pre¬
plies for the beleagured men on
troops will be released for the vious six months^ although
Bataan.
The Japanese sea and
they capital, reported the formation of;
a new Cabinet headed
invasion attempt.
The result of were still below the figures for
by Mustafa :
aerial control in the China Sea
two months of
fighting in Malaya January, 1940.^. In waters around Nahas Pasha, who is said to favor seems
to preclude help for our

loss of

that

landed

were

Philippines week by week by the
invading Japanese, and before the
vastly superior - numbers of the
aggresors
even
the
intrepid

Nations

United

that

sizeable

bodies

feated.

itself."

No major battles have been re¬

ported so far this week in North¬
ern Africa, which may well mean
that both sides are jockeying for
positions.
The next phase of the
campaign, it may be, will develop
both eastward and westward from

Army troops had been de-

Stiffening resistance of:
Reichswehr finally was ad-;

the

mitted
the

even

in Moscow.

Germans

Moreover,

*
their"

continued

sieges of Leningrad and Sevasto- :\
pol, and held tenaciously to the»
important Donets town of Khar- kov.

A
curious
supply depots of the Axis in
sidelight
on. this1;
In the Battle of the Atlantic Tripolitania.
That the British ex¬ struggle was supplied
by
the:
the German U-boats continued to pect a heavy thrust against Gib¬ former British Ambassador to Rus¬
sink American and other ships at raltar was revealed incidentally, sia, Sir Stafford Cripps.
Writing'
a rate that probably surpasses the
in reports of a bomb explosion and lecturing daily in his own
admitted sinkings.
The freighter at Tangier, last Friday, in which country, Sir Stafford has been
San Gil
and
the tanker India a number of Britons were killed presenting Russian Communism in
Arrow were added late last week and wounded.
According to dis¬ the most favorable possible light.

Com¬ to, the' list

the

known

sinkings, patches

from

Tangier,

partial

also

suggested

that Germany

Volume

will

Number

155

V-.'l/V'w..:--•

;4045

the offensive

THE COMMERCIAL & FINANCIAL CHRONICLE

the

brewing, is made clair by reports
that Marshal Petain is * journey¬
that much material assistance be ing from Vichy to Madrid, in or¬
sent' to /Russia. \;; ^st ■" ''?r-K.? der to confer with Spanish author¬
ities/Portuguese officials also are
Western Europe
\
said -to
contemplate a visit to
;v. Hardly any activity was noted
Madrid.
In all probability this
this week in the direct fighting
reflects
added
pressure
by the
between
British.
and >v German Germans
throughout the Iberian
forces in Western Europe, but it
Peninsula, and the sad fact must
resume

Russian front next

May, and urged

where. for iresh campaigns. The
perilous British position at.Singa¬
pore :and in Burma kept Europe
the

background.;

Pacific

Council-finally was set up in. Lon¬
don, Monday, in which the memk
ber

nations

monwealth
will

and

the

collaborate.

the

British Com¬

the

United

Nations,

Washington

about the domestic economy, Tne
fact that it

is. developing among

the

Dollar-a-year men as a whole,
would not be significant. But it is
among all groups.
; /
developing among the Dollar-aRecent criticism of the British
year
men
who .have heretofore
Cabinet occasioned some modest
been playing ball with the New
changes in London, last Thurs¬
Dealers
ana
who
are
still get¬
day. Lord Beaverbrook was given
the newly created War Cabinet ting /their economics from" New

quate contact is to be maintained

Dealers.

post of Minister of War Produc¬

tion, while Sir Andrew Rae Dun¬
named

was

can

Minister

Supply, to succeed Lord Beaver¬
brook.
Numerous less important
shifts

also

generally

effected.

were

believed

difficulties

that the

new

Britain

now

' which

faces in the East, along with all
other/United Nations, will eaus a
still. more
questionings in the
-

House

of Commons,

some

and perhaps
emphatic
Cabinet

changes.
The
ture

German

the pic¬
better than

side

assuredly is

that of the United Nations.

deaths

Little

among

been

their

they wouldn't subscribe to

caused

fense

bond.

de¬

Roosevelt

Mrs.

cabinet, the New Dealers could do
a job on him, pin Pearl Harbor on
not have him, perhaps. He's come to be in

relatively insignificant dam¬
which such a bombing could

effect.

may

which

amusement

the

White

House

ask

has

she walked in and im¬ House—and the Treasury.
To make the Washington pic¬
posed herself on Mayor LaGuardia, against whom the agitation ture even more ridiculous, there
has been so pronounced that he is is the fact that out of the melee
says,

the

clever

out.
she

Roosevelt,

Mrs.

is, in the long

even

between Donovan and LaGuardia,

alphabetical
letters
were
likely to confound, her Con¬ given to Archibald MacLeish, the
gressional and editorial critics by poet-librarian. The leiters "OFF'were
allotted to him, the open
bringing in extraneous matters.
;
In order that you will know sesame to Congressional appro¬
what is going on in Washington, priation went along with it. News¬
the facts are these:
papermen, publicity men—others
LaGuardia, being a politician, seeking jobs—pursued MacLeish
for weeks
and weeks trying to
began working on Mr. Roosevelt
a-vor
i^e
Presidential ascertain just what his organiza¬
as

run,

some

rather

tnem,

make them

way,

tne

war

montns

sell this idea to the President who

was

the

and

explained

pertinent.

without

utterly

Matabele,

troyer

1,870

this sinking

probably

ponding

tons,

announcement of

tish

destroyer sinking

having

without

cars,

places to get gas or tires or re¬

Ger¬

pairs, they will begin to ask quesLons. It won't be as easy to "re¬
build" the automobile
industry

man

cars,

corres¬

Bri¬

in the

their

operations,

what it is today.

little idea, But he knew one
thing: He was going to build up
a

staff.

Some

writers

the

known

country were ac¬

and

cumulated

best

some

these

fellows would say:
"I want to do my bit, but I don't
want

come

Washington and

just sit around. What can I
if I join up with you?"
Archie

would

assure

reported yesterday to be ar¬
ranging conferences at which they
might discuss their respectively
and mutually unhappy positions
as "neutrals" in a Nazi-dominated
were

has

torn

out

its

automobile

pro¬

Congress being
Donovan, think¬

the

few

times

since

the

Northern Africa.'
London

•

dispatches made it ;

clear, late last week, that un-.

France was receiv- j,

occupied

ing

the
that

attention,

fresh

light of alleged evidence

relatively young
clerk of
Congressman Ham Fish has just
been sentenced to jail because he
was siipposed to have had to do
with

the

dissemination

Hitler

defineu

him

concerned

much

trend.

That

and

over
;.

(

fresh

the,
; :?i-f

penings in the bureaucracy.
There

tremendous

LaGuardia

developments/ are about Mrs. Roosevelt's putting the

Watch out for

Securities

and

Exchange

announced

that

market value of total sales

the

all

registered securities exenanges for
December, 1941, amounted 10 $1,220,311,57b',

increase of 104.3%

value

over

tne

market

sales

for

November

total

saw

this

and

moved

masse,

market

dancing

vember.

"liberal" views.
it will be amaz¬

told, could be seen in the "terri¬
ble blunder" which Knox made in

OCD

the

masse.

52.5%
The

end.

was

valued

sales

for

$151,853,
The

units.

increase

November

value

market

taled

The

right

involving

and
to¬

594,785

Commission's

volume

value.

December

nouncement further

an¬

said:

stock

sales,
excluding right and
warrant
sales, was 62,081,189 shares, an

increase of 134.5%
ber.

Novem¬

over

Total

principal amount of
bond sales was $277,037,925, an
increase of 72.0%

Novem¬

over

ber.
The two New York exchanges
accounted for 92.6% of the mar¬
ket

value

the

total

market

sales, 91.7%
of

value

stock

sales, and 99.7% of the market
value of bond sales on all regis¬
tered securities exchanges.
The

sales

market

value

total

exempted securities

ex¬

changes,
excluding
Honolulu
Stock Exchange, for December,
1941, amounted to $716,623.

Pass Defense
Legislation

Housing Act

authorizing

ap¬

propriation
of
$450,000,000
for
housing and community facilities
in
war
production centers was
was
signed on Jan. 21 by Pres¬
ident Roosevelt.

The bill author¬

izes

$300,000,000
for
approxi¬
mately 75,000 houses for defense
workers in many sections of the
country
and
$150,000,000
for
school, health and similar facili¬
These

ties.
to

authorizations

$900,000,000

defense

the

raise

Government's

the

housing

since

program,
amounts
were

same

voted

last year.

The

House

the bill
on

sent

originally

passed

Dec. 11 and the Senate

Dec. 19.

ferences

However, due to dif¬

the

two

were

measures

conference

this

and

re¬

port was approved by the Senate
Jan.

Jan.

the

and

thus

15,

House

completing

Con¬

gressional action.

latter

particularly. It was that
speech that Hitler was our
enemy and had to be licked

Jones Gets Mutual Post

famous
No. 1

first.

Mutual

The
of

Life Insurance

Co.

York

has announced

the

New

appointment of Rufus H. Jones
fact

The

that

this has been

member

the

Executive

De¬

partment to take charge of agency

publicity, and to participate in
other, publicity and
advertising
activities of the company.
Prior

Mr. Roosevelt's
a

serious

•

said

point blank that he had a
paper to go back to in Chicago
and was ready to do it if any¬

creation

against

were

the

over

warrant

speech which terribly riled the
Australians and the Chinese, the

the

members

sales

Bond

$134,712,225,

a vehicle for
thing was put over on him. But
Harbor
has
intervened.
question of possible Pearl
bombings, she may or may not Knox would not like to pull that
feel as lightly as did the members bluff now. Before Pearl Harbor,

dia's

policy and there is

So she set out to make LaGuar-

this.

of $1,085,447,498,
113,3% over No¬

value

increase

question as to whether
for he has been even yet definitely

to church en masse, to her

lectures

December,
said the Com¬

mission's announcement,
exclud¬
ing right and warrant sales, had

It will be good;

in¬

the market

over

Stock sales,

1940.

the

whom have very

46.7%

and

value of total sales for

places.meantime, it was sug¬
gested that a possible field for
nim mignt be to "coordinate" the
utterances of the Washington bu¬
reaucrats. It was pointed out that
In

crease

just yet, the men joining
be assured that they

together,
playing games together, for eating weaned away from it. But it is a
together, singing together—that politically bad sign for Knox that
we should be just one nappy fam¬
he was made the goat. Heretofore,
ily of 130,000,000 people, presum¬ he has been one man who "talked
ably gathering for her occasional up" to Mr. Roosevelt. On two or
visits, going to the doctor en three notable occasions, her has
for

other,

cautions
furore

The

could

other
propaganda in this country. It is
military stores were supplied
difficult to see how Hitler per¬
by Vichy to the German and ;,/ sonally or any of his agents could of
Lord
Beaverbrook's
mission much political capital could have
Italian forces in Africa. Wash- ;
do a better job than is being done recently over here. Our talk about been made out of Knox's resigna¬
ington also was reported to , ; in Washington today by the hap¬ bombings and our efforts at pre¬ tion.
The situation was so bad
gasoline

food,

Commission

although his jurisdiction was not

skilfully in the bureaucratic

New

;

now

Exchanges
Up 104% In Market Value

he could be everything that ing, if he gets by with it.
It is not without significance
OCD, the OFF and the Cen¬
sorship Office is, if he moved fast that in the White House order

quickly to offset it. He appointed
pletely, and are diverting to war Mrs. Roosevelt to his set-up. Mrs.
goods. Well,unlike the President's Roosevelt has long had ideas on
issuing an order which reopened what she calls "universal service"
Europe.
Such gatherings are not the
banks, this can't be done to on the part of the people. The
to be regarded lightly, especially
business of preparing people for
the automobile industry.
at such moments as the present
The havoc having been done, possible bombing raids is deeply
one when the United Nations ap¬
frankly I get quite a bit of pleas¬ subordinate in her mind. But she
pear almost everywhere to be on ure out of
reporting that among does think people should be "or¬
the defensive.
The collaboration
ganized"—for
visiting one an¬
Vichy regime in France and Dealers came to Washington there
the fascist government in Madrid
is a worry among them, including
with the Axis is altogether likely
the Dollar-a-year men who went
to increase, especially when the
along .with them for reasons of
Nazis and their-Italian associates
their own, that more has been bit¬
are
making military progress in ten off than can be chewed. > / /

from

Dec. Sales On

the

duction lines, torn them out com¬

of the

Stimson.

them that

ing

and

because

humiliation he

suffer

nobody's business.

haa

giving him this authority, Frank
Washington newspaper¬
Knox was made the goat. The
men, visiting Detroit a couple of maze, thought it would be a ten
France-Spain-Portugal'
weeks ago at the invitation of the spot to take Jimmy Roosevelt on necessity for having this uniform¬
Political leaders of unoccupied
This would give him ity
of
official utterances,
the
automobile
manufacturers, have his staff.
France and of Spain and Portugal
with
Father
Roosevelt. Washington correspondents were
returned to tell how the industry contact
Atlantic*

the

and

likely

man

that

very

part, in some
would
endeavor.
It

him at least four

took

tion

frankly

He recalled at the time, xs an adroit politician himself.
now
the New Peal had struck This writer knows of at least tnree
The
latest
of
these
was
the
down
the
banking industry in conferences which LaGuardia had
one official was liable to say one
"accidental" death of Major Gen¬
1933 and rebuilt it from the bot¬ with tne President and came away
eral Fritz Todt, Minister of Muni¬
thing on the radio one night and
tom (under such a rigid govern¬ xrom me Wmte House burning up
the same night, another official
tions, ion the" German Eastern ment control that there is a
oecause he had not been able to
ques¬
front, reported Monday. The Ger¬ tion as to what function the ma¬ sell his iaea. Finally, the Presi¬ would be saying something differ
ent.
Archie thought that was a
man
Propaganda Minister, Paul
jority of the banks in this coun¬ dent gave him the go-ahead and
Joseph Goebbels, is busy explain¬
another bureau came into; being good idea but he didn't see now
try now perform.) Unmistakably,
he could possibly attain the estate
ing to the German people why lrom now
on,
there is to be a in Washington's bureaucracy.
of censoring the speeches of cabi¬
they are grumbling.
\
About this time, Frank Knox had
fight for the control of the auto¬
net
members.
But he
went
tc
Aerial fighting over the At-)
the President to let
mobile industry, in the rebuilding, persuaded
work on tnat possibility—with the
Ian tic and the North Sea &P-'
"Wild
Bill''
Donovan,
al¬
bui wnat is interesting is that in Col.
backing of Felix Frankfurter—
parently was modest in recent
New Deal circles, there is a fright though a Republican, get in on
and the high priced writers whom
days, possibly because of bad
about
tne
near
future
political the snow. So the President finally
he brought in were pressing him
weather conditions.
London
problems that have been entailed- told him he could have an organ¬ to be
"vigorous" and to assert
reported /last Saturday the j
The fear is - that when farmers ization to be known as "Coordi¬
himself. Lo and behold, he has
nator of Iniormauon" (COl). With
successful repulse of German
operating second-hand cars, when
finally wangled a White House
air attacks on a convey. Both
countless other citizens operating such indefinable bureaucratic set¬
order
calling upon the cabinet
sides
engaged
in
modest
second hand cars, when the mil¬ ups, it is up to ambitious men to
members and. the other govern¬
bombing of objectives, such
lions of workers depending upon go out and create a function. Bemental big shots to submit their
as ports and industrial estab¬
automobiles for their transporta¬ lore even creating this function
speeches to him and his high
lishments.
London admitted
tion, come to be inconvenienced, they go to Congress and get hun¬
on Sunday the loss of the des-;
dreds of thousands of dollars for priced magazine writers, some of
find
themselves
highest German military groups.

hole

significance, is
pronounced, feeling caiupa-&n Ox 194u, for a piace in
w*e
Let-up. A politician
among i the Bureaucratic "think¬
ai
..eaalmes. Tne
ers" that perhaps the, entire clos¬ WUSl
i.uU
at Liat time,
ing down of the automobile in¬
dustry was too drastic. Moving to the " deiense ■ piogram. Therearound Washington you get the lore, a politician, to keep in the
neaalmes had to get in on this
impression, now that the agitation
against the industry is fairly over, show, LaGuardia was to be a can¬
that there is a/fright among those didate lor reelection in November
of 1941.
It was his original idea
responsible for Tt.
Maybe ; the
striking down of the industry in chat the country nedeu an organ¬
one
fell swoop was
too much, ization to make tne people "war
conscious." The way to make them
they now say. In this connection
'war conscious" according to La¬
something I have written here be¬
fore, to tne effect that Leon Hen¬ Guardia, was to put uniiorms on
Of

the

derson considered the thing to do
information. is permitted to seep
was
to
cut
the industry down
through the Reich lines, however,
completely and slowly begin its
other than reports of a curious
rebuilding from the ground up, is

succession

the
age

to do everything they can to avoid
serving in the armed forces, how

(Continued from First Pagej r
\s there ' is developing a thought virtually

ade¬

and

From
.

center

nerve

discussing it, making disparaging
remarks about how they are going

Netherlands

.Washington

military

Melvyn Douglas, and the a bombing inconceivable. But they of a campaign, couldn't stand for
dancer,, Chaney, or something like couldn't understand such nation¬ it. That is the way it would have
that, in the Office of Civilian De¬ wide frantic activity in view of seemed then.
fense/One hears taxicab drivers the remoteness of a bombing and
Now, if he were to leave the

actor

Washington newspapermen not to
be recognized that the hold of the made it clear that she will fight print the fact that within a few
Reichswehr upon- much - of Con¬ back. The usually dignified Mark hours after Pearl Harbor, half ot
tinental Europe may incline the Sullivan, expressing all the indigo Pennsylvania Avenue, in front of
three nations to eomply with Nazi nation at his command, ask how the White House, was being torn
on earth Mrs. Roosevelt got in the
demands;//■ v
■
up for the purposes of erecting
OCD in the first place.
Perhaps, a bomb shelter for the White

evident that intensive prep¬
arations were being made every¬

was

687

them,
this

not that

amused

mission

they thought

that

this

triotic,
came

man

that

who
a

was

pa¬

Republican he

into the cabinet in the

midst

joining the Mutual Life organi¬

zation, Mr. Jones was associated
with McCann-Erickson, Inc., New
York

advertising, agency, as copy¬

writer

account

and

executive.

he was con¬
nected with the advertising firm
of Doremus & Co.. serving the
New York office of this agency
From

1935

both

its

1940,

copy

and

publicity

that

departments.

time he

member of the edi¬

was a

torial staff of "Barron's Magazine"
in

Boston.

work in
Mr.

addition

his.

publicity and advertising,

Jones

has

contributed *

articles to the "Saturday

many

Evening
Post" and other magazines.

688

President

created

Roosevelt

to assure
utilization of

effective

shipping of the United States in
the war effort, and named Rear
Admiral Emory S. Land, Chair¬
man of the Maritime Commission,

formed

this

President
shall from time to time assign
or
delegate to him.
,
\ .
3.
The functions, duties and

Under
order,
Admiral
Land is empowered to requisition
all ocean vessels, not belonging
to
the
services or
engaged in
coastal transportation under the
of

control

law upon

damage resulting from the
establish the conditions for
receiving priorities; represent the
United States in dealing with the
British Ministry of War Trans¬
port and with similar agencies of
the allied countries on shipping

Act

Marine

1936

chant

war;

matters
data

maintain

and

current

tion.

such

and

Establishment of the War Ship¬

Administration is in line
with the joint United States-Brit¬
ish announcement of Jan. 27

three boards

deal

with

cre¬

the

vested

President's

tration

the

United

States

Navy, and in order to as¬

such

the most effective utiliza¬

sure

tion

the

shipping

the

United States for the successful

prosecution of the
"hereby ordered:

war,

1. There is established within

the Office for Emergency Man¬

agement of the executive office
of the President

War

Shipping

Administration under the direc¬
tion

Administrator

who

shall

be appointed by and re¬
sponsible to the President.
2.
The Administrator
shall

perform the following functions
and

duties:

Control

purchase,
and

use

the

operation,
requisition

charter,

under the

all

flag

vessels

ocean

control of the

United States, except (1) com¬
batant
vessels
of
the
Army,

Navy

and

Coast

Guard;

fleet

auxiliaries
of the
Navy, and
transports owned by the Army
and Navy; and (2) vessels en¬
gaged in coastwise, intercoastal
and

inland

transportation

un¬

der the control of the Director

pool

control

States

for

Navy,

other

ments

and

the

United

by the Army,
Federal depart¬
agencies and the

use

governments

the

United

■"
/'/r
Provide marine insurance

Nations.
C.

and reinsurance against loss or

damage by the risks of war as
by Title II of the

authorized

Merchant Marine Act,
amended.

1936,

the

Director

the

Budget

Bureau

and

the

Navigation of the Depart¬
of Commerce, and other
Government
departments and
agencies which are engaged in
activities

Commission against

shipping.

In the discharge

of his

re¬

locations

sponsibilities the Administrator
shall collaborate with existing

ferred

war-time
with

provisions

the
of

the

first

War

The White House,

transportation overseas, in

Feb. 7, 1942.

order to secure the most effec¬
tive

utilization

shipping in

the

liaison with the

Departments of
Navy
through

"War and the

Hurley To New Zealand
Brig. Gen. Patrick J. Hurley,
Secretary of War under President
Hoover,* was nominated by Presi¬

tion to the coastwise and inter¬

firmed it

Jan. 28.

At the time

1941.

production effort and the civil¬
ian economy the Administrator
shall be guided by schedules

conditions
a

con¬

receiving priorities
advantages as ! pro¬
vided in Public Law 173, 77^th
Congress, approved July
14,

transmitted
E.

Represent

States

the

with

the

Government
British

United
in

dealing
Ministry of

War Transport and with similar
shipping agencies of nations

with

allied
in

the

matters

the

United

States

prosecution of the war,
related

the

Maintain current. data

Chairman

him

the

the War Produc¬

tion Board prescribing the pri¬
ority of movement
of
such

commodities
7.

The

and

materials.

Administrator

establish committees

may

groups

nomination

the

New

Zealand

withheld then in order
insure his safe arrival there.

post
to

was

since

that

time

has

been

prac¬

ticing law in Washington.
The

President

David

lumberman,

Winton,
as

nominated

had

Minneapolis

the first Minister

of advisers representing two or

to New Zealand but withdrew this

nomination at the latter's request

eral
on

**or

departments of the Fed¬

Government,

agencies

missions of governments al¬

ther states:' Ar.
.....

acres

the

farms

nor

quotas,

overseeded

allotments

the

favorable

within

their
may

market

normal
from

Jan.

of Jan.

noted in

22, page 342.

our

issue

estate

Federal

has

foreclos¬

shown

Loan

continued

point

During

Home

index

Board

highest
decade.

65%

below the 1935-39 average.
Increased

mortgage

activity
the effect of
many interrelated factors.
Ris¬
ing real estate values resulting
from generally improved eco¬
nomic conditions, coupled with

who

make

their

All

their

Iree

actual

ties.

with the ref¬
announcement,
the
AAA said 1942 provisions have
been relaxed to allow substitu¬
tion
of
volunteer wheat for
seeded wheat destroyed by a
cause beyond the farmer's con¬
trol such as flood or drouth.
The substitution of volunteer

jyheat acreage for the acreage

proper¬

o'f

rates.

production of their acre¬
allotment.
Excess wheat,
unless, stored under bond, is
subject to a penalty of 50% of

rise

the

age

erendum

liquidation

owned

Home

ownership
has
by the wider
higher loan to
value ratios, longer periods of
amortization, and lower interest

normal

also had the

the

acceptance

normal
market free of penalty an
amount of wheat equal to the

The announcement

for hous¬

been made easier

tire production is below

year ago.

demand

institutionally

al¬

000,000
bushels and average
production for spring wheat of
162,000,000 bushels. This is the
greatest supply on record, near¬
ly 100,000,000 bushels more thari

for

market

pro¬

acreage

increased

ing due to national defense, has
provided
an
impetus
and
a

lotments and farmers whose en¬

over

likewise

downward

acreage

allotments.

penalty

index

the?

movement.

this

1941

Bank

marketings that program cooperators made when they seeded
farmers

W- "'

of Labor!

the

was^

that

have

ures

which

farmers
their

asked

are

.•

• -

in recent years is

adjustment

same

This

Nonfarm ' real

normal

Under

/,-• •

construction

points

than 200 bushels.

have

*• f -V,"•. v1 •>)".

'•-<

i reached in well

production of the
acreage planted to wheat is less

.",w

curtailment of activity
priorities' were- imposed
during the latter months of the

f year,

qudta

than 15

■

sharp
when

remains
essentially the same as that in
operation in 1941.
Quotas do
not apply to farms on which
the acreage planted to wheat
more

«.

residential

^ Statistics, stood 98% above the
v 1935-39
average,despite the

program

for harvest is not

V* ,»i

The

index of the; Bureau
<.

the announcement says:
quota

1940
1939.
by each class
lender has moved
over

over

the volume

*""^A *

the

Gen. Hurley served in the Hoover following to say:
In connection
from 1929 to 1933 and

Cabinet

use

of shipping.

The

with

of mortgage
consistently upward, there have
been some significant shifts in
the relative participation in total
activity.
The Board's letter fur¬

••

connection

the basic loan rate.
the
assistant dent Roosevelt on Jan. 28 to be
first American
Minister to
Chief of Staff for Transporta¬ the
As to wheat supplies, the De¬
New Zealand.
It is assumed that
tion and Supply and the Direc¬
partment stated:
Gen. Hurley already has reached
tor, Naval Transportation Serv¬
The supply of wheat in 1942Gen. Hurley, who is a
ice, respectively, with respect his post.
43 is estimated to be 1,428,000,native of Oklahoma, was recently
to, the movement of military
000 bushels on the basis of a
and naval personnel and sup¬ promoted by the President from
July 1, 1942, carryover of 635,the rank of Colonel in the Army
plies; and with the Director of
000,000 bushels and a 1942 crop
the Office of Defense Trans¬ Reserve, to that of Brigadier Gen¬
of 793,000,000 bushelsr which in¬
The Senate received this
portation with respect to the eral.
cludes a prelininary estimate
relation of overseas transporta¬ nomination on Jan. 19 and con¬
for 1942 winter wheat of 631,-

dition to
and other

the

responsi-

Statistics

investment

$1,200,000,000

While

may

coastal
shipping
and
inland the promotion was made known,
transportation. With respect to the White House announced that
the overseas transportation of Gen. Hurley would undertake a
cargoes
essential to the war special mission and, it is said, his

Establish

to be complied with as

farmers.

duction

1941.

Act,

FRANKLIN D. ROOSEVELT.

connected

functions

Powers

funds trans¬

this section shall be

subject
Section

naval and civil de¬
partments and agencies of the
Government
which perform
military,

other

the

and

$700,000,600

crease

and

demo¬

bility for this orderly handling
among
all the nations' wheal

appro¬

other
transfer;
provided, that the use of the
unexpended appropriations, al¬

such

priations, allocations
funds
prior
to
the

the opera¬

related to

Maritime

States

time

same

divide

cratically
*

may

United

the

Research

volume

and

of activity in
industry,
invest¬

$4,750,000,000.
This high
of recordings is an in¬

over

filled to capacity,?
provide for orderly,
handling of our wheat reserves

ment

effort

representing

With¬

We must

Commission,

the

already

are

United

the

from

Maritime

productive

tempo
and

savings
and
loan
throughout the coun¬
try, reveals that all mortgag*
lenders during the year recorded
more
than
1,628,000 mortgages,

farmers, disrupts transportation
and clogs storage facilities that

the program,

include
amounts
necessary
to provide
for the liquidation of obliga¬
tions
previously
incurred
by

maintain close

transferred
States

personnel of the United States
Commission, the War
and
Navy
Departments,
the
Bureau
of
Marine
Inspection

tion of

wastes

the

progressive

eign outlets well into 1943.
; I
;
Raising
excessive
wheat

the

re¬

with

associations

needs both at home and in for¬

■

Shipping Ad-

pursuant

sion

producing y a bushel this
we have enough on hand
supply all of our anticipated

Board

consistent

with the voluntary cooperation of

out

Administra¬

the

through

Mortgage

tinued upward during 1941.
The
study of nonfarm mortgage re¬
cordings of $20,000 or less, which
is conducted by the Board's Divi¬

year,

provisions of this order. In de¬
termining the amounts to be

Maritime

portation.
Allocate vessels under the

the War

ministration

appropriate

of the Office of Defense Trans¬
B.

States
in

farmers

seeded

purposes.

ments by institutions and individ¬
uals in real estate mortgages con¬

produc¬

vided plentiful reserves.

Shipping Administra¬
Director of the
Budget with the
approval of the President shall
determine, shall' be .transferred
to the War Shipping Adminis¬
tration for use in carrying out
the
functions
and
authority

the services

prosecution of the war. The
Administrator particularly shall

flag

United

needless

that

increased

agriculture is em¬
the largest and most

occur

Wheat

War

transferred

farmer

will be classed

business

Ever-Normal Granary have pro¬

balances of

allocations, %

the

tor and

and

reason

program

ports

tion of farm goods that already
exist
in
plentiful y-. quantities.

pro-

as
the
Bureau of the

strategic

utilize

available

nec¬

tion,

For the purpose of carry¬

thorized

will

for

use

the

Army,

ing out the provisions of this
order, the Administrator is au¬
of

ferred to the Administrator and

military requirements.
5.

exercise of the functions trans¬

and

with

comply

the

may

ending June 30, 1942) for

the

the Administrator

vessels

shall
■

agencies,

funds available (includ¬
ing
funds
and
contract
au¬
thority available for the fiscal

depart¬
the
governments of the United Na¬
tions. In allocating the use of
and

within

other

Federal

other

ments

Com¬

and

the

some

exceed

allotment.

In
its
"Mortgage
Recording
Letter," issued Jan. 28, the Fed¬

Farmers

comprehensive food production
the world has ever
seen.
To obtain this production
our
entire
agricultural effort
must be expended in
such a
way that no waste of human
labor, machines and material

is fur¬

Maritime ' Commission

cannot

acreage

Investments Up In '41

approval of quotas on the
by an 81% majority.

American

■

Administrator

the unexpended

year

for

program

appropriations,

by the Adminis¬

use

Navy,

Chief of the Army

constitute

shall
for

trator

for

years

crop

barking

necessary supplies,
facilities, and services. So much

War Shipping Adminis¬

to be allocated

States, including the first War
Powers
Act,
1941,
approved
Dec. 18, 1941, as President of

and

the

unable to seed his wheat, a
volunteer
crop,
as
in former

In making this announcement,
Secretary Wickard said:

employ
personnel and make

essary

and

control

1941

con¬

manner

authorized

%■ visions

this order

under the

in such

Administration

hereby assigned to the WarVessels

voted

allocated, transferred, or ap¬
propriated to the War Shipping

Shipping Administration.

tion and statutes of the United

mander

functions

duties prescribed by
are

his

to
so

determine.

ther

together
and public

records

such

exercise

Of the authority
by the Constitu¬

virtue

States

national referendum.

Adminis¬

discretion

limiti bf such funds

may

follows:

order

United

the

respect

The

and

The

issued

8771

wheat

was

came

upon

and

may

property as the Administrator
deem necessary to the full

with

assignment, shipping
adjustment
and raw materials
(see issue of Feb. 5, page 572).
text

cies

Commission

Maritime

munitions

The

part of existing per¬

sonnel

ping

ating

Order

Executive

1942

the

him by this order
through such officials or agen¬

and

1941,

war.

with

him.

authority

pursuant thereto, Public Law
173, 77th Congress, approved
July 14, 1941, are hereby trans¬
ferred
to
the
Administrator;

shipping under construc¬

June

final

ferred

amended, 49 Stat. 1985, Public
Law
101, 77th Congress, ap¬
proved

States

trator may exercise the powers,

respect thereto, under the Mer¬

farm

age

the

eral Home Loan Bank

United

vested

repair, maintenance
requisition of vessels, and
issuance of warrants with

the

Committee.. To be in full, dortipliande with ithe-AAA program,
however, the total Wheat acre¬

Real Estate

the

the functions and authorities

charter,

purchase,

operation,

;

shall

insurance,
and

wheat

crop last July when it be¬
apparent 1942-43 wheat sup¬
plies would far exceed the mar¬
; ; ^ 8. Within the purpose of this
keting quota level set by law.
order, the Administrator is au¬
thorized to issue such directives However, said the Department, to
be placed in effect, quotas must
concerning shipping operations
have the approval of two-thirds of
as he may deem necessary or
the wheat farmers voting in a
appropriate, and his decisions

Maritime
Commission with respect to the

Transportation;
allocate
vessels
for use by the United States and
by the governments of the United
Nations; provide marine insur¬
ance and reinsurance against loss

destroyed can be made-updn the
approval* of the: county: AAA

Secretary of Agri¬

culture Wickard set May 2 as the
date for the

may

prosecution of the

the

powers conferred by
the
United
States

Office of Defense

the

duties

lated

executive

On Feb. 4

with

made in carrying out
order and perform such re¬

progress

head of the new agency.

the

Keep the President
with
regard
to

Wheat Referendum In May

in¬

and

materials

export of war
commodities. ' -

the

Thursday, February-12, 1942

the

departments and agencies
with the import or

eral

States

referendum in
appoint repre¬
sentatives to such joint mis¬ which wheat farmers throughout,
the nation will vote on wheat
sions or
boards dealing with
matters within the scope of this marketing quotas for the second
order as may be
established successive year.
Quotas were proclaimed on the
with
governments associated

Further, he

concerned

the

order

tration,
most

Feb.

re¬

the United

prosecution of the war, as
the case may require to carry
out
purposes
of
this
order.

quest to the Departments of War
and the Navy, and other Fed¬

War Shipping Adminis¬

data

such

furnish

with

the

construction

under

and

being
and

NewWSA

lied

availability of shipping in

the

Admiral Land To Head

THE COMMERCIAL & FINANCIAL CHRONICLE

The

higher ratio

flected

the

average

size

corded.

size

values

loans

and

are

re¬

the

mortgages

re¬

increase

loan

compared

1941

the

average

was
$2,906, as
with $2,722 in 1939.

Government agencies, particu¬
larly the Home Owners' Loan

Corporation and the Federal
Housing Administration, have
contributed materially toward
fostering these lending policies.
During

December, 1941, the
mortgage- recordings
to
$392,000,000, as
compared with $327,000,000 in
total

amounted

December, 1940, and $303,000,000 in December, 1939.
The
figure for 1941 represented; a
3.9%

increase

over

November,

1941, whereas the December,
1940, and December, 1939, fig¬
ures decreased 0.2% and JL.7%,
respectively, from their preced¬
ing
months.
This
contraseasonal

increase in December,
1941, may be partially attrib¬

uted to
ers

desire of home-seek¬

purchase standing struc¬

tures and to complete pending

negotiations before further price
rises

occurred.

Full text of Commercial and Financial Chronicle : February 12, 1942, Vol. 155, No. 4045, Section 2

FRASER