Full text of Commercial and Financial Chronicle : February 21, 1946, Vol. 163, No. 4466, Section 1

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

adm.
ubrartt

bus.

FEB 2 3 1946

Final Edition

Volume 163

In 3 Sections-Section

ESTA BUSH ED 0 VER.100

New

Number 4466

York, N. Y., Thursday, February 21,1946

Price 60 Cents

LoanRatification

as
By CHESTER BOWLES*

National Stabilization Administrator

By PAUL EINZIG

Correspondent Writes ^©f;
Anxiety Over U. S. Delay in Ratify¬
ing the
Loan
Anglo-American
Agreement and Points Out That
British Exchange Position, in the
Meantime, Is Becoming More Diffi¬
cult.
Says: British .Reserve of
Dollars Is Dwindling and That Brit¬

t

Asserting Nation Is Facing

I

v

Dr. Palyi Discusses Gold Devaluation

Inflationary Crisis, Mr. Bowles Tells

an

;

'

f

ish Government Willie Pressed to

>

trols Are Essential to Prevent™ an Explosion From Inflationary
Dynamite. Maintains That New Wage-Price Policy Will Not Lead
ToSubstantial Price Rises and Points Out That Numerous Wage
Increases Were Granted Workers Without Employers Seeking
> Higher Prices. States That "a Speculative Fever Has Taken Hold
of Country" That Rises to the Bursting Point.
Urges Laws to||
Control Rents and Real Estate Speculation and intimates that.

'

Rescind Agreement Unless

Some Discontinued Controls Will Be Renewed. Holds Not Unfair

Congress

.i LONDON, ENG.—The delay in
ratification
of
the
Wash¬

the

I

am

faced

the

stabilization

blame

front.

of

the

Government
>• for

ha

Ameri

c an

1

policy

a r

i fied

before

come

your

rate on
fixing a time
limit beyond

tee to request

British

tion statutes.; I
appreciate

the

lapse
the

can

Agreement is

As'u^isf*they

Britain is

argue,

now

committed,

while the United States is not.
; Until
recently such, criticisms
carried but little weight, because
of the officially-sponsored optii

(Continued

on page

page

of

Regular

978)

1004.

Features

on

say

It

would be

I

-

the

patience
postponing its hearings.

difficult to exag¬

stock

can see

it in the

market, in the real estate

cy

Committee,. Feb. 18, 1946.
(Continued

,

Corp.*

'

'

on page

Prospectus

"

on

Sound Credit

Personal Basis Without "Commit¬

on

We

as

banks

can

2-0600

Chicago

*

Teletype NY

Cleveland

Established
;

any

are

Geneva (Representative)

1-210

,.

the

basic

-

on

This

Hugh H. McGee

is

extreme

an

case

of

a

mentality—let's call it aurophobia
—which by no means is excep¬
tional.
It reaches far beyond the;
lunatic
fringe. It inflicts a
thoughtful type of businessman
and investor who is most seriously

(Continued

988)

on page

I am very happy to talk today with you bankers of Ohio
by Mr. McGee before the Ohio State Bankers Asso¬

*An address

(Continued on. page 979)

INC.

NEW YORK STOCKS,

1927

Street, New York 5
PHILADELPHIA

-

Troy
Albany
' Buffalo"
Syracuse
Pittsburgh
Dallas
Wilkes Barre
Baltimore ".
" Washington, D." C,'
Springfield
Wdonsocket

FINANCE

SECONDARY
MARKETS

for Banks, Brokers
and Dealers

Bond Department

Hardy&Co.

and COMPANY

INCORPORATED

46

THE CHASE

NEW YORK

•>

Members New-York Stock Exchange
Members New York Curb Exchange

•

5

634 SO. SPRING ST

30 Broad St.

LOS ANGELES «4

WALL STREET

Common

Tel. DIgby 4-7800

&Conv.

Preferred

AMERICAN

mm

The Firth Carpet Co.
«•

•

•

'

Common

1
/"

-

90c Conv.-Preferred

r

NATIONAL BANK

New York 4

of

the city of new york

;

Tele. NY 1-733

MAOE^V^^H
IN
fHH

Scranton

MARKET'S

1

CANADIAN

Dealt

in

on

N.

Analysis

Raytheon Manufacturing Co.

*

$6 Preferred

-

v

Spring

Brook Water Co.

"

\SECURITIIS/

Solar Aircraft Company
•

Bonds

Service

V

Prospectus on Request

HUGH W* LONG

State and

,

Municipal

J

L-V

.

Bond; Brokerage

1

RAILROAD SERIES

Acme Aluminum Alloys, Inc.

BROKERS

based
Dr. Melchior Palyl
wheat, in
the place of the "dishonest" one,
based on gold.
V.:■v\ ,U'-i,
money,

ciation, Columbus, Ohio, Feb. 12, 1946.

CORPORATE

BOND

he

preaches what

of

attributes

addresses

c

he calls honest

exist only as long as we enjoy

which

has

in:; which

credit risk, and if the credit is to be used for a constructive

INVESTMENT SECURITIES

64 Wall
BOSTON

London

3 i

the confidence of the people.
First, their confi¬
dence that their deposits with us will be so

"know-how"

he

it ten; a"

phlet
against
$folA
and gives pub-

Tape. Proposes a Scheme for a Bankers'
Advisory Service to Management With a View to
Increasing the Life Extension of Individual Concerns

.

HAnover

a

w r

tee" Red

request

R. H. Johnson & Co.

HIRSCH, L1LIENTHAL & CO.
Members New York Stock Exchange
and other Exchanges

As

Banking Must Learn Again to Stand-on Its Own
Feet and Accept Responsibilities of Supplying

COMMON STOCK

Prospectus on request

25 Broad St., New York 4. N. y.

of
gold.
matter of.

ness

p a m

990)

Liberty Fabrics of
New York, Inc.

Successors to

the, worthless-

fact,

purpose.

^Nu-Enamel

Hirsch &Co.

con-; /

victions about,

That Banks Cooperate More Extensively With Small
Businesses to Improve Their Management.
Says

^

*

not

Statement of Mr. Bowles be¬

fore House Banking and Curren¬

Aerovox

his strong

and

Banks

the

the gravity of the infla¬ handled by us that they" wil be available to them
tionary crisis we face. An expec¬ when they need to withdraw them. Secondly,
tancy of higher and still higher their confidence that we will use them in such a
prices is sweeping the country. way as to build the economy of our country
The speculative fever is reminis¬ soundly and constructively; that we will lend
these funds to those who possess the integrity and

*

Sah Francisco Mines

to

gerate

^

Gaumont British

Belongs

does

interfere with

Vice-President, Bankers Trust Company of New York

in

■

cent of 1929. We
Index

:

than

Committee's

Bowles

Chester

of

stabiliza¬

more

Unless

Paul Einzl,

Commit¬

extension

ratification

ratified by the

that

'

•

Not the Government,; Mr. McGee Urges That Government Credit
Agences and "Guarantees" Be Dispensed With and

c

before I could

at any

would

v ::

.

tration

ratification, or

which

By HUGH H. McGEE*

Asserting' That, the Banking Business

be

British-

o us

M'

was

imperative

simultane-

on

It

that Adminis¬

in g

v

failed to insist

:

Some Brass Tacks of Banking

pro¬
portions on the

Agree ment

Critics

Chicago has a remarkable citizen, a former farmer who became
successful businessman acquiring substantial wealth. Among
r■'■■■
■'.■■■"y'-'y. ^sundry other
t hin g s
he
owns two gold
mines, a fact

very

crisis

a

of major

London.

in

,

Aurophobia

weeks we have

ington Financial Agreement by
Congress is causing grave concern

.

"

Controls.

have had to ask for several postponements
I think all of you know that for the past tew
♦—: 1

1

;

;

sulting High Prices Greatly in Excess of Dollar Value. Holds
as Inflation Hedge, and Con¬
tends Rising Mining Costs Can Be Offset by Lower Taxes and
Cheaper Processes.
Says Lower Interest Rates Increase Mine
Values and Concludes That, Although Outlook of Gold Mining In¬
dustry Is Varied, Mining Shares Offer a Double Hedge —- One
Against Currency Devaluation and Another Against Commodity
Price Depression.

very sorry we

of these hearings.

Prospects and Holds That

This Condition Due to Use of Gold

.

for Labor to Accept Temporary Wage

Soon Ratifies It

'

Worldwide Abandonment of Gold for Currency Would Not Greatly
Affect Its Value. Notes Present Wide Demand for Gold and Re¬

-

House Banking and. Currency Committee That Continued Price ConI.

Copy

an

By DR. MELCHIOR PALYI

-

-

a

1

Y.

Curb Exchange

on

request

$2,40 Conv. Preferred

Prospectus

Bull, holden & C°

Kobbe,Gearhart&Co.
INCORPORATED

MEMBERS NEW YORK STOCK EXCHANGE

Members N

14 WALL ST., NEW YORK 5, N. Y.
TELEPHONE-RECTOR 2-6300




Y

Security Dealers Ass'n

New .York 5

45 Nassau Street
Tel. REctor 2-3600

Philadelphia T*'»ohon*

Teletype N. Y. 1-570
.

Enterprise 6015

on

request

HART SMITH & CO.

;

Reynolds & Co.

Members
New

Members New York Stock Exchange
52

180 Broadway, New

York 6, If. Y.

York

Security

WILLIAM ST., N. Y. 5

Dealers

Assn.

HAnover 2-6980

Bell Teletype NY 1-395

>

Telephone: REctor 2-8600

Teletype NY

1-636

ira haupt & co.
Members New York Stock Exchange
and other Principal Exchanges
ill

Broadway

New York 8
REctor 2-3100

10 Post Office Sq.
Boston •

Hancock 3780

Tele. NY 1-1920

New York
.

Montreal

Toronto

Direct

Private Wire to

Boston

.

THE COMMERCIAL & FINANCIAL CHRONICLE

958

Trading Market* in: ZZI

N.Y.N. Haven

P. R. MALLORY

in

St. Paul
•

■'

v.

Frisco
Old

Dy Murray/shields*

;

Vice-President aird Economist, Bank

&.sdFjP Com.

;-v•

■

of the Manhattan

S CO., INC.

v:'/L;"r:.;

Co.

Bought

Appraising the Conditions Underly ing the Bond Market's IZ-Year Record Upswing, Mr.
a Tightening of Money Bringing A bout "Tlis Postwar Bear Market in Bonds."
This
Will Occur Because the SuppIy-and-Demand Fact irs Respecting Money and Credit Are About to

After' Carefully

Established 1920

Undergo

Members

York Security Dealers Ass'n
Nat'l Ass'n of Securities Dealers, Inc.
40 Exchange Pi., N.Y. 5
HA 2-2772

Fundamental Change, and Because Our Mnri"tary and Fiscal Policies Have Brought In¬
to Levels That Are Untenable Except in Tim3 of War or Depression.
Therefore He

a

terest Rates

New

Be Held to

Advises Long-Term Investors, Who Are Dependent
Their Bonds.

Maturity.

Hold to Maturity, to Retain

factors

c

n

Electrol

In

'•

dealing with
this period, it
is convenient
to* divide
it

U
Stock Exchange
Broadway, N. Y.

Members Baltimore

WOrth 2-4230

Teletype N. Y.

phases.

1-1227

400 shares

;

W. & J. Sloane

period,

Exchange

31 Nassau Street, New York S

price of gold was

aggressive policy
of pump-priming .with batik-fi¬
nanced deficits was initiated by
the Government, and the Federal

written

Curb

Shields

Murray

the

devalued,

Vanderhoef & Robinson
York

one

the dollar was

Common

New

Full-Time Directorate,;
the Increase of Its Lending -Power From $700 Million to $3%
Billion, Permission to Lend to Foreign Governments in Default, the
Elimination of the Johnson Act, and the Bank's Establishment as
an Independent Agency.
In the Second Half of 1945 Its Loans
Equalled 45% of the Total Extended in the Previous 11 Years of
Its Existence.
The Bank's Operations Will Supplement, Not Com¬
pete With, Private Capital; and It Will Confine Itself to Reconstruc^ tion Loans to Meet
Emergency Needs, Thus Avoiding Conflict With
the Long-Term Functons of the World Bank.

up,

an

These are crucial days for world-

^

of living

(Continued on page 982)

r

us

is

no

the
future, but1 is
actua 1 1y
nearly five
in

months

is

ASegre

Sugar

Guaranty

Capital Stock

terminated;

20 Pine Street, New

Teletype NY 1-1843

*

-

Members

York Stock

New

.

,

A \

,

New York Curb Exchange

Boston & Maine R. R.
Stamped Preferreds'

.

120 BROADWAY, NEW
Tel.

k

REctor

,

;*'!

YORK

'

I
Wm.

is

hazards and that

.

Members New York Curb Exchange
64

WALL ET.

Buckeye Incubator
Consolidated

trade.
The, Bretton
actually in proces?
of being set up.
Finally, and this
is my
top:C, the Export-Import
Bank has been remodeled to play

world

ing

i;

>•'

its part in meeting, the foreign fi¬
nancial needs which the havoc of

:

kkkk'k

GCodbody & Co.
Member! N. f.

St. Paul, Old Pfd. &
Denver Rio Grande,

^jbl.,
t

<

St. Paul & Pac.

Ss/2000

Consolidation Coal

.

GUDE, WlNMILL & CO.
Members New York Stock Exchange

NeW York 5, N. Y.
Teletype NY 1-955

Howard Aircraft
?V;

(Statement

Available)

Dixie Home

Storey |

Macfadden Pubv Inc.
.

Pfd.

Com.

&

'■.<,r..■;

% When last May the victory in

Europe was achieved, immediate

Hanover 2-4850
teletypes—NY 1-1126 & 1127

Bell

have created1.

war

tfyk'kH'kiA Canadian Securities DepT/u:2^|§g|^

37 Wall St., N. Y. S
"

Ind.

CayugaSusquehanna
Chicago,

:

Members N. Y. Security Dealers Assn.

Fiim

Republic Fictures

clear¬

Woods plan is

Preferred I

STEEP ROCK IRON MINES

cmAVomparu^

8

ing, away the obstacles to expand¬

for

DREDGING

NORANDA MINES

YORK

■> HAnover 2-9470

Social Council

be hard at work

soon

NEW

-

Teletype NY 1-1140

DIgby 4-7060

MINNESOTA & ONTARIO PAPER

Preferred

Com.

&

Frank C.Masterson & Co.

and adopt js functioning—one Of its divisions,

A PAPER, Common &

BULOLO GOLD

Pfd.

1 Wall St.,

We Maintain Active Markets in U,. S. FUNDS
ABITIBI POWER

have al^

we

ready passed a number of encour¬

will

Northern New England Co.
United Piece Dye Works
&

a

am

ous

Common & Preferred

Common

moment, mini¬
seriousness, of
the

fbr

the Economic and

Kaiser-Frazier

they

intending to be a Pollyanna,
firmly convinced that we are
travelling on the right road.
Ir
fact, it seems to me that we have
already»traversed many danger¬

McC. Martin, Jr.

-Biltmore Hotels

manner

a

way,

the time to agree upon

Botany Worstsd Mills

Luscambe Airplane

,r;

Eastern Footwear

activity in the field of exports and aging milestones along the way
imports. If is obvious that .now is The United Nations Orgamzat'or

:/:A-

2-7815

of
in

becoming available for peacetime
commerce; and our .Government
has withdrawn from much of its

Exchange

'

,

another; world

the
problems confronting many areas
of the world and without, in any

swing;

shipping

frfc pQNNELL & fO.
.

:

needs

full

York 5

Telephone: WHiteftall 3-1223
Bell

the

civilians is

of

chance to germinate.

mizing

reconversion

it Bought—Sold—Quoted "

a

Without,

is

such

in

seeds

may be destroyed before

have

of industry to

H. G. BRUMS & CO.

the

war

■

Punta

discharged

that

old.

Lend-lease

of all peoples willing and
Opportunity is once

again not only knocking but push¬
ing at the door. It is up to all of
us
to see'" that the responsibility
which v'ctory has placed upon us

post-war

longer

Lincoln Bldg* Corp.
Capital Stock

k '/J ■'

(Va.)

Common Stock
,

able tc work.

world

Preferred

&

Central States Elec.

k

and raise the standards

commerce

to realize that

A. S. Campbell
Common

direction

the

*

4

Common

System Teletype NY 1-1919

ggjjg|gj

is hard for

York, Feb. 14,

New

1946.

Broadway WHitehaH 4-8120

Bell

trade; The stream of economics

established. It

Queens County Bankers

the

Association,

Byrndun Corporation

Mr. Shields be¬

*An address by
fore

f

Members New York Stock Exchange
Members New York Curb Exchange

SO

politics is swirling around us as if only does in periods of transi¬
before>■ kk-k.v •
<
• ® r"
vg™"
j j ""
- "■
the course is
principles and
practices Which
will promote the growth of world
narrowed and
the

NY 1-1548

;

and

Telephone COrtlandt 7-4070
Bell System Teletype

a

tion

permitted gold

Reserve authorities

Expansion Arising From

Soya Corp.

;

Billing & Spencer

He TfaceV the Insti¬

Commerce "Which Aro Fushittg af the Dour."
tution's Recent

c
p y era th¬
roughly the
period' from
early 1933 to
the middle of
1936. During

this

Company

Members

f

/

Phase

Mar-Tex Realization

Chairman, Export-Import Bank

Bank Is Being
Thoroughly Remodeled to Realize Our Opportunities for World

Reflation

:

'

Rands, Inc.

MARTIN, JR.*

Chairman Martin Declares That the Export-Import

Phase i-—

SALE

FOR

WILLIAM McC.

By

,

several

into

branch offices

to our

Getchel Mines

has

d.

e

NY 1-1557

La.-Birmingham, Ala.

Direct wire*

experi-

ever
e

Bell

New Orleans,

\

Exchange

discuss

to

nation

•?■■■> 120

Income and Able to

oir

0

biggest and longest bull markets
in bonds this

Bought-—Sold—Quoted

Quoted

St., New York 4, N. Y.

HAnover 2-0700

the outlook^
briefly the
responsible for one of the

well

is

it

of Texas

—

Members New York Stock

25 Broad

appraising

Before

Seven- Up

Sold

Steiner, RouseS Co

Recommends That Banks Readjust Their Portfolios for Greater Liquidity, Diversifying Between Short-:
Term Securities Sufficient to Meet Increased Loan Demands, and High Grade Securities Which Can

TELETYPE NT 1-423

BEIfXi

—

Shields Predicts

KING & KING
.

;

the End of

Pacific

Missouri

Thursday, February 21, 1946

'

An add^^s bv M*

fore

NEW YORK 6, N. Y.

•

the f

Chicago

Cionference: of the

,

Matfm be¬

World ' Trade
Chicago A«c^-

ciation of Commerce, Feb.

Teletype NY. 1-672

Telephone BArclay 7-0100

Old Pfd.

*

Stock
Exchange and Other Principal

115 BROADWAY

Common

;•;;

;

(Continued

on page

18,1946.

C. E. de Willers & Co.
Members New Ydrk Security Dealers Assn.

120 Broadway, N. Y; 5, N.
REctor 2-7634

Y.

Teletype NY 1-2561
■nifirtfwftfmrifitnrn

995)

Frisco, Old Pfd. & Common 1
Missouri Pacific, Old Pfd. & Com.
New

Haven, Old Pfd. 8t Com.

New York, Ontario &
*

,

Rock

Old Common

Island, Old Pfd. & Com.
Seaboard Air Line
Old

I

Pfd.

&

Com.

Western Pacific
Old

Pfd.

&

Electronic Corp. of

j

Trading Markets

America

* -2

PUBLIC SERVICE CO.

>

Western

"

.

*

.

Harrisburg Steel Corp.

Kingan & Company

REALIZATION

170 PlrtE St., Nf. Y. 5 WHitehaH 4-4976
Teletype NY 1-609




.v-'v

Common

BOUGHT

Common

Western Union Leased Line Stocks'

—

'k"'0k!-

Bought—Sold—Quoted

Simons, Unburn & Co.
Memberx New York

25 Broad

Stotlt Exchange

St., New York 4, N. Y.

HAnover 2-0S09

Tele. NY 1 -±i 0

Troster,Currie & Summers
Members N. Y. Security

74

HA 2-2400
Teletype NY 1-376-377

Private Wires to Cleveland
Detroit

•

Pittsburgh

->

St. Louis

Pacific & Atlantic Telegraph Co1.

—

QUOTED

Teleg. Co.

Empire & Bay States Teleg. Co.bought

-

sold

-

quoted

J-G-White 6 Company

Dealers Ass'n

trfriity Place, N. Y. 6

International Ocean Telegraph Co.
Southern & Atlantic

SOLD

•Prospectus Upon Request

Com.

6. A. Saxton & Co., Inc.

or INDIANA

MAR-TEX

Arnhold and S. Bleichroeder

iflOOR'PORATED

37

WALL STREET

NEW YORK 5

Established 1890
Tel. HAnover 2-9300

■

Tele. NY 1-1815

INC.

30 Broad St.

WFHehnp'

New York 4!
W

1

.Kt.T
V

:i

Volume 163

:

Utilizing Our Productive Capacity

I'.*.

•

•

THE COMMERCIAL & FINANCIAL CHRONICLE

.'.V.

By HON. HENRY A. WALLACE*
v<

>.

.

Number

rSecretary of Commerce

'

,

Considers British Loan Good

V*

-

.

-

;

«.•

.

•

AND COMPANY

-Wilbert

--Asserting That Farm Markets and Farm Prices Depend on. Full
Employment and Non-Agricultural Production, Secretary Wallace j
Urges Support of OP A as Avoiding Deflationary Disaster That;,
Followed World War I.

.

v

Contends Full

Employment Bill as En-]
^ acted Is Only a Pledge and Provides No Program of Action Which;
}&Will Preyept Future Depression. Favors British Loan as Pro-!
moting a Healthy World Trade Which Alone Can Insure Prosperity,
and Calls Upon Every Individual and Organization to Work To-;
gether Under Uhe Leadership and Coordination of the Federal!
Government to Promote "Utilizing All Our Productive Capacity.";

Ward, President of Bankers Association for Foreign Trade!
and Vice-President of National City Bank, Says We Will Restore;
Multilateral .Trade and Reestablish a
Dollar-Sterling Parity. Doubts;
Whether Export-Import Bank Loans Sufficiently Protect American
Exporters,
V

f;
;
'

Wilbert Ward, President of the Bankers Association for
Foreign
City Bank of New York,

V

Trade and Vice-President of The National

with

groups of Mil¬

have

*'

traders.
On the previ¬

;;

more

be

I'

that

more

solved

that

d,

a n

ous

v-

been realizing

b:

for

our

our

the

crops

welfare

de¬

is

pends

not

worker

ities'

to

elsewhere.

and.

„

the

on

of

For¬

a

This

war.

war

to

seems

Whatever - he sells he
wants to sell high;
Whatever ijie
buys he wants to buy 'cheap;
! .

money.

••

* An address

to

realize that the

agriculture

to

ht

respect

Britain,! Mr.*; Ward said

in

by Secretary Wal¬
Eighth AnnUjal
Institute,
D;es
on page

with

t

to

United

peace

as

Great

|

Artists

Piece

IJ

j

Work^

Dye

\ > .<•

i

'

Jefferson Travis

■

j

are

theirs.

We
best

mutually

are

customer.

interest- as.it

best

Great

Britain,

each

It

is

in

a

mutual

that

that

beneficial business bargain should
be concluded between us.
I doubt
whether

part:!

anyone

(Continued

can
on

IGOLDWATER & CO

in

is

suggest

984)

page

Members New York Security Dealers Assn.

39 Broadway

;

.

New York 6,
HAnover 2-8970

N. Y.

Teletype NY 1-1203

an

;

GREAT AMERICAN

j

INDUSTRIES

i

SEC Oxford Decision S.till Has Dealers in a Ferment.
Nature of Controversy Makes Well Intended

:

998)

NEW YORK

Univis Lens
_

in

Dealer in Search of! a Guide

Farm

(Continued

C O m me

loan

Moines. Iowa, Feb. 16, 1946:

cannot

10

-

the .proposed

-

the:

before

.

'

.

>

comple¬
mentary and interlocking; our for¬
eign trade rises and falls with

of

Wilbert Ward
'

STREET,

United

afford

to

me

jn^eres|s

our

Know.", Asked

we

Request

on

Telephone WHitehall 4-6551

fair basis for the negotiation of
business bargain premised on

a

a

our

nation

WALL

Kingdom to return to its
policy of multilateral
trading from which it was forced
to depart due to the exigencies of

Should

a

99

_

xporters

"What

agrees

.

;;
Memorandum

traditional

other's

as

National

of

—.

A

Club

.\f.]£•;<•>

knows

''

support thus given will enable the

eign VTrader

lace

problems

the

.

™

E

COMPANY
1

United

only when we produce moife.
But the" Individual producer and
consumer- thinks
directly abojut

is

nad

and

.

the proposed credit to the
United Kingdom will be that the

cam consume

r

nave

Club

other

more

| also.? doing *
good job of
making
the

we

national Trade

the

of'

In

Inter¬

gain

from

subject

that

not the rest of

nation

.•

put

to

Everyone

,

—

f the

cities.

a

meeting

the

will

we

duction

advan¬

it
deH pends also on
;
whether
or
tage

the

of

chief benefit

Milwaukee the conviction that in

words,

the'

v

joint

The

it .briefly, farm
markets and farm prices depend
on full employment and full pro¬

only on using
Hour own pro! ductive facil¬
best

on

j to have

marketf- basket
in

evening he

addressed

the farm,—
a; market
and that our market

wholly

have

we

for¬

,

eign

The idea of making the most out of what we;have to work with
new to
any farmer.
Recently most of us with farm back¬

grounds

various

waukee

is not

ENGINEERING

Feb. 19 met*

on

;

SNYDER TOOL &

jCircular

on Request

Help {

^Useless Because Unofficial.

Oxie-Way Streets
Rising Market Fallacy
By MAURICE* E.; PELOUBET*
••

\

<

•

I

V

k'

n

Mr. Peloubet, Noting the
.Humjan

7 r

i

M;:. The ferment created
and

by the opinion of the Securities
Exchange Commission in the Oxford case continues to
i

-

J. F.
*

to be

Reilly & Co., 4
Members

York Security

*

*

HAnover

hell

System

;

Boston,

^

Assn.

5, N. t,
f

2-4785

Teletype,

Private

-

in the Air/

]

Dealers

40 Exch. PL, New York

v;''iW"

-

#vzD6uble: trouble

Trait to Abandon Principles When;

and

New

seeth.:

j

Trade Customs

Usages Play Part in Broker and Dealer Relation- I
ships. - SE,C Silence a Public Disservice.
!'
,

-

••

—

Treasurer, Anjeyican Institute of Accountants

•

<

NY

Wires

Chicago

&

1-2733-34-35'
to

Los

1

1

Angeles i

They Do Not Fit the Purposes of Their Proponents, and to Fail io
Recollect Past.Unfavorable Experiences, Points Opt That the Pres¬

r
Because this section is so broad, the Commission's at¬
tempt to reenforce its dicta by referring to Section 3(a)(4)
Securities Market Is Regarded As "A One-Way Street." Holds [ f" proved unfortunate.
'w
^
Speculators andlnvestorsAre Now Fully Protected, and That as J
It defines a broker as.

ent

•"

"any

gf Long

'TRADING MARKETS

engaged in the busi¬

person

as Pressures Are Upward^ Theye Is Little That Contralor ;;i
ness of
effecting transactions in securities for the, account
Regulation Can Do When Willing Buyers and Sellers Are-Permitted; ;
of others
V''
I
>
1
s
V
1 •'
to Trade.
Says There Is Nothing Especially Sacred About-Free
'
Of course, when, you are playing with words, the pos¬
Enterprise jBut It:Does' Work and: That the Only Means of Escap- i
sibilities of construction are numerous, and many dealers
ing Burden of Public Debt and' Raising Living Standards Js to i
were fearful all. this
Have Greatest Possible Expansion.of Production..
flight ultimately mean that dealers
< j
would have to go on an'agency basis. '
•
r
:
) V;
A. few years ago X was. staying at a ranch, in Wyoming.;-: One
Howevep, ia ourr opipipn, this alarm was unfounded.'
morning-several of us were mounted• and; ready fpr an all-day4rail-

'

Kingan Co,
Haloid Corp.

'f\'f

.

t

,

Thiokol

.■

•

,

j

Corp.

Sargent .&

.

Co.'

Billings & Spencer

i

Reeves Ely Lab. Pfd.

1

%-P

,

-

■

'

„

,

,

■pm;
I

.

trip when the*»
'
•" "
K:
wrangler who Then he ran him around until the
-

♦!

H
■'

lead.

to

was

he

the

.1 i

best

s

,*An

.

of

the

was

(Continued

Banks

-—

Brokers

io

You

Public Utility

re-

may

memher.our

Maurice

,\i<vv

*

E.

-/1

turned

Peloubet
..

him

■>

-4

into

^

he Hi ap-

year ago,

"The

;

Sugar Assoc.

Lea Fabrics

aod Industrial

■

r

j

".^1$

General Aviation Equip^
■.

v.'v•»

i

\ PREFERRED STOCKS

CONFI¬

the

DENT

of

the

and

YEAR"

the

:

amaz-

foresight
revealed by its

the

comments/,'.^,

the

i

wrangler
sagebrush.

g

/;
;

DUNNE & CO.

Spencer Trask & Co,

}

You will want to read the,;

7*/

25 Broad Street, (New York

7

Telephone HAnover 2-4300

timely

j\fjemijers

NeU)

r /

York Stock

;

,

Members New York Security Dealers Assn.

.Private -Wire

Exchange

Copy

Bond & Mtge. Guar. Co.

to

Boston

•••'.i'/:;'v'i

'

of

issue

latest

of

Public National Bank

j

American Beuitam Car

:

our

-i''

"GEARED TO THE NEWS" Bul-\

letin

Service

sent

on

request.

-'

:

•

••

,7-

-

*

'•

•

*'

V;7"

;"3.b:

-iV

-

Lawyers Title & Guar. Co.

STRAUSS BROS.

N. Y. Title & Mtge. Co.

Members

York

Security

'

32

NEW YORK 4

Newburger, Loeb & Co.
WHitehall 4-6330

.•

Direct
New

.

;

Co.*

Stromberg-Carlson

u.

National

|

Bought—Sold—Quoted

-

Ass'n
,;j.

Trust

•-

•>

.

• ••

'■

••

-

\

•

•

'

■
.

K

Radiator

^

*Analyses
••

■_t"

> v cy.x*•''•:

••

V.

•i'
•

;;;•.

to

Co.*

avaHab'e

dealers

on'.y

Board of Trade Bldg.

Broadway

DIgby 4-8640
Teletype NY 1-832. 834

Members New York Stock Exchange

Dealers

*v
.

Prudence Co.

New

&

Common and Preferred

L

-

.




Y.r

WHitehall 3-0272—-Teletype NY 1-956

H;

THRESHOLD
OF THE FUTURE

CERTIFICATES

Bell Teletype NY 1-2033

25 Broad St., New York 4, N.

v;

Teletype N.Y 1-5

..

;

TITLE COMPANY

Lawyers Mortgage Co.

n

review of factors making for 1946

prospects:

N.Y. 5

Alegre. Sugar

U. S. Sugar
i

j

re¬

a

He let him buck. When he stopped

40 Wall St.,

=
V- WOrth 2-0300
Teletype NY' 1-84
}

System

Eastern

■

view

party,; Totally
unconcerned,

....

interjested in offerings oj

High'Grade

generally

rest
.

are

Dealers .j:,

—.

as

\

'

f*

;v

-

1000)

proached

.

Bell

Punta

We

1946."p';

up

•

-n

mlom

very

i Accountants,

c

on page

buck and cut-

--v.

e,i.nn

Members New York Security Dealers Assn.

•

par¬

began

Pu b 1 i

Philadelphia,, Pa.,' Feb. X9,.

ticularly lively
and

•

•

170 Broadway

^

(Continued on page 997)

:

v

1/

mmaa

Pennsylvaniamlnstitutef^f

Certified

t

This

'

J This! becomes still clearer Vhep .we. consider .the-

^

morning t h'e
wrangler's
horse

From the structure and tenor of the Securities and Ext

•*.f

change Act of 1934, its fallacy is patent.'

more:

some

address by Mr. peloubet
the Philadelphia Chapter

before

and

elie

v

horses.

v

buck

-

Wranglers

up.

v

him

the party rode

-always ha vie
;

made

;

Wire

CHICAGO 4
Harrison 2075

Teletype CG 129

■i

S

Hon RsseS Trssier - ® 1111
Established 1914

Service

York—Chicago—St. Louis

Kansas City——Los

Angeles

-

74

Trinity Place, New York B, N. Y.._

Tplr/nhn'ne:^ BOwIing., Green 9-74Q0

y^v-'v!-

Teletype: NY 1-375

C.E. Unterberg
Members N. Y. Security Dealers

61

Broadway, New YorW £

C».
Ass'n

N.Y.

Telephone BOwling Green 9-3565 V
Teletype NY l-16fin

THE COMMERCIAL & FINANCIAL CHRONICLE

960

Dean

A Democratic Forum

:

;

Attendance of Share¬

holders at Stockholders Meetings Has Resulted

From (1) Their

Depression Days; (2) the SEC Rules Governing the Solicitation of Proxies; (3) the Cooperation of Management in| ?
Making Meetings More Convenient as to Both Time and Location; J

I

American Bantam Car

I

Com.

&

I
L

'

1*

n

"

''

In

Old Pfds.

for

I Dayton Malleable Iron*

ap¬

per¬
such a

at

gathering and
if he came he

General. Machinery

too often

was

made

General Tin,

he

Getchell Mines

to

was

Gt. Amer. Industries*

not

and

welcome
must

feel

not

be

heard.

seen or

.Probably

II

Hartford-Empire Co.

one

ways
of
indicating

What

Kingan Co.

style

Old

Pfd.

.

V

Lewis

;

D. Gilbert

meeting

Editor's Note: Lewis D. Gilbert,

private citizen of New York
City, every year attends some 40
meetings of companies in which
a

when he was with an institu¬
long since merged, a share¬
holder actually came to a meet¬
ago

tion

Fireproofing

he

holds

As

ing and what is more dared to of¬
fer a resolution!
The subject of
the resolution?
One to commend

Polaroid Com.

on

ertia.

the fine work
the year.
In
consternation the Presiding Offi¬
cer turned to the bank lawyer and

Sylvania Industrial
Stand. Comm'l Tobacco

after

^.

he

to

100

shares.

stockholders' traditional in¬

Recently

continue

hik "battle for corporate

v

regretted that even for such

,

on

page

977)

I

American Hardware

Crowell-Collier Pub.

United Drill "B"

Bowser

Oxford Paper Com; &Pfd.

Waltham Watch

Cleveland Cliffs

Warren Bros. "C"

Sunray Oil 4V^% Conv. Pfd.

Bought

Sold - Quoted

-

,

;

I Textron Wrnts. & Pfd.

$61,363,867,932 on November
1941, to $278,681,970,658 on
December 31, 1945.
Management
of ? this
huge Federal debt in
peacetime will differ from the
technique and objectives of war¬

I

115

105 West Adams St., Chicago
Teletype NY 1-672

United Piece Dye
.

American Gas & Pow.
Cent. States Elec., Com.
Iowa Pub. Ser. Com.

•

•

..

.

•

'

'

fLe Roi Company

^Electronic Corp.

^Simplicity Pattern

tBishop & Babcock

fYork Corrugating

*M. H. Lamston

Iowa Southern Util.

*

Prospectus and Special Letter Available

tStatistical Study

or

Special Letter

on

Request

Puget S'nd P. & L. Com.
FIRST COLONY CORPORATION

Stand. Gas & El. Com.

Members

52

Wall

New

York

Street

Security Dealers

!

fProspectus Upon Request

;

Tel. HAnover 2-8080
*Bulletin

or

Association

#1

New York 5, N. Y.

Teletype NY 1-2425

Circular upon request




debt

administration.

ever,
the
utilized in
deficits

methods i and sources
financing the wartime

have

extent

How¬

to

considerable

a

predetermined

danger that the decline may be
accompanied by a sharp rise in
unemployment, the budget should
be unbalanced by increasing Gov¬
ernment expenditures of a nature

likely to stimulate business activ¬
is met with proceeds

obligations

: to
the
commercial
banks, it leads to an increase in
deposits
which
are • purchasing
power.
This system has been em¬

ployed by

the

leave

changed

public debt un¬
to follow the practice

of the past and reduce the public
debt as rapidly as possible. After

Civil

War the gross public
$2,755,763,000 as of June
30, 1866, was gradually reduced
to $961,432,000 on June 30, 1893.

of

First

World

War

caused

gv;

^

Parrish

&

Co., 40 Wall Street,
City, members of the
Stock Exchange and
other leading exchanges, will ad¬
mit Byrd Wenman, Jr., to partner¬
ship on March 1st.
Mr. Wenman
New

York

New

York

in the past was a partner in

Wen¬

& Co. and did business as an

man

T':

individual dealer.

Paine Webber

to

Admit;

Paine, Webber, Jackson & Cur¬

tis,

membera

Stock

will

LaCroix

Paine

ship

?of; the New York

Exchange and other leading

Exchanges,

on

William.

admit

to limited

partner¬

^

March

analyzing the relationship of
\ The COMMERCIAL

;

field

and

FINANCIAL CHRONICLE

ministration of the public debt is
deemed by manyauthorities irt
the

975)

page

a

the latter date and Dec. 31, 1930,
the debt was reduced to $16,026,-

087,000.

on

Parnsh to Admit Wenman

the
or

European coun-

some

(Continued

Problem of Debt Retirement
The first problem that will con¬
front the Treasury will be whether
to

When the budgetary deficit
from sales of

ity.'

post¬
management of the debt.

war

ity the bulletin remarks: The ad¬

and Other Principal Exchanges

Telephone BArclay 7-0100

|

.

the public debt to business activ¬

Goodbody & Co.
Members N. Y. Stock Exchange

Broadway, New York

i

•

30,

In

Alabama Mills*

Madden

The Debt and Business Activity

,

I
I

J. T.

Dean

debt from

Art Metals Construction

Iron Pfd.

ity, and particularly when there is

of

Federal

sharp increase in the gross public
$1,282,044,000 on March
31; 1917, to a peak of $26,596,702,000 on Aug. 31, 1919, but between

'P'py Cliffs Corp. Com.

^ >

On the other hand, during pe¬

from

•

convenient and

more

riods of declining business activ¬

■

Government

debt

(Continued

debt

the

The

U. S. Air Conditioning

|

teed

the

democracy."

stated that

the

in

crease

a

short-term obligations held by the
banks.

in¬

gross direct
and • guaran¬

spokesman ;; for
opinion,
he

Thiokol Corp.

Upson Corp.

| a

four and one-

stockholder

returned from
military service, Mr. Gilbert says
that he is thoroughly primed to

whispered conference, he

a

cleared his throat and

10

self-styled

small

it had done during

management

from

claims to have done much to over¬
come

the

Sheraton Corp.

re- :

suited V in

time

who likes to relate that many years

;

Taca Airways

(1) The worries of the depres¬
sions days.
'•

like, may be seen from the
tale of a Chairman of a large bank

Mohawk Rubber
National

Old

was

Missouri Pacific
.- "

an

financ¬

II, which

i;

best

Kaiser-Frazert

an

peri¬

half-fold

commer¬

simpler procedure to pay matur¬
ing short-term obligations instead
of refinancing them and applying
the surplus to Retiring securities
at their call dates, the Treasury
in all probability will employ the
surplus
tax
funds
to
redeem

ing World War

The causes are many and varied
-•-it' will suffice here to list |a
few of them.

the

of

to

of

od

Since it is

De¬

the

out of the holdings of

came

banks, the volume of bank
deposits would.remain unchanged.

19 4 5

came

end

rati¬
fied and approved the day before!
What
has
brought about the
great change? For today the aver¬
age meeting is now attended by
many stockholders of all walks of
life and representing all shades of
opinion.
It is fast becoming one
of the few places where people
who in the ordinary course of
things would never rub elbows,
hear views and opinions often dif¬
fering quite fundamentally from
those they are accustomed to hear,

in

pear
son

Douglas Shoe*

to

motion

the

could not be entertained since the

of

stock¬

a

holder

purpose

in

On the other hand, if the
obligations retired with the sur¬

cial

Loan

Victory
drive

A,,;-.'

International

of

investors other than the

the

of

cember

Institute

banks.

plus

With

comple¬

minutes had been drawn up,

almost

was

unheard

laudable

a

1

tion

^

days

before 1929, it

Cinecoior

;.

the

i

the

growth of interest in the annual meetings of our large
corporations is one of the most hopeful signs of the post war era.

S. F. Bowser
Chicago R. I. & Pac.

York

states:

the

of

University,

New

The

|

Director

Madden,

of

Finance

Hopeful Signs of the Corporate Post-War Era.";

"One of the Most

T.

John

Dean

Stockholders'

Pid.

*y:pr,f

!;•: A bulletin entitled "Management of the Public Debt"'issued by

(4) the Circulation of the Minutes. He Traces the Growth of f
Interest in Their Companies, Which He Hails asi

and

Air Cargo Transport

^ Activity. Holds Treasury, Through Proper Handling of Maturing
Obligations, Can Exert Steadying Influence on Inflationary Forces.
Contends Interest of Debt Not as Important as Sound Debt Man¬
agement

Worries of the

|

Madden, Director of Institute of Finance, Says Proper Man-

agement of Public Debt Can Prevent Sharp Swings in Business

•

By LEWIS jo. GILBERT

Mr. Gilbert States That Constantly Increasing

v-vy

National Debt Retirement Urged

■P

1ST, 1926

Thursday, February 21, 1946

U.

S.

Patent Office

|

'

of

public finance and
credit a suitable means of influ¬
encing • business activity and of
preventing sharp swings in the
business cycle.
It is generally re¬
ferred
to
as: the
compensatory

William B. Dana Company

by

the

»'

standing obligations would reduce
the volume of deposits if the re¬
tired securities were held by the

D.

.-,".''1^

Seibert,

Editor and Publisher

William Dana Seibert, President
William D.

Riggs, Business Manager]

Thursday, February 21, 1946
Published
every

twice

a

week

Thursday

(general news and advertising issue)

Government is
in retiring out¬

;

2-9570 to 9570

Herbert

a

derived from taxes, the utilization
of the tax money

'
>7

w'REctor

v

budget system which is supposed
to operate somewhat as follows:
During periods of prosperity when
business activity is at a high level
and
employment is satisfactory
the Treasury should endeavor to
have a surplus and to retire out¬
standing debt.
Since the surplus
obtained

Publishers
25 Park Place, New York 8

,

a! and

V

every Monday

\

J*

(complete statistical issue—market quo¬
tation
records.
corporation,
banking,
clearings, state and city news, etc.)
Other Offices:
135 8. La Salle St.,
3, 111.
(Telephone: State 0613);
Drapers' Gardens, London, E, C., Eng¬
land, c/o Edwards & Smith.

Chicago
1

,

Suburban

"MOTOROLA"

Propane Gas*

•■P

Reentered fis second-class matter Feb¬

Kaiser-Frazer

ruary

Radios &

Phonographs

Made by

Galvin

Kingan & Company
Greater New York Industries

Manufacturing Co.
on

Incorporated
Members

41

Broad Street,

New

York Security

New York 4

on

Request

request

Seligman, Lubetkin & Co.

J.K.Rice,Jr.&Co.
Established
Members

Dealers Association

HAnover 2-2100

25,

York,

N.

3,

1942,

Y.,

at the post office at New
under the Act of March

1879.

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

*Prospectus

Circular

,

Copyright 1946 by William B. Dana'
Company . ■ ;
"'jy':-

N,

REctor
Bell

Y.

1908

Security Dealers Assn.

2-4500—120

Broadway
System Teletype N. Y. 1-714

Australia

and

Africa,

$31.00

per

year.

.

Other Publications

Bank and

Quotation Record—Mth.$25 yr.
Monthly Earnings Record—Mth.. .$25 yr.
NOTE—On account of the fluctuations
In the rate of exchange,

remittances for

foreign subscriptions and advertisements
must

be

made

in

New York

funds.

8SC

Volume 163

Number 4466

THE COMMERCIAL & FINANCIAL CHRONICLE

Pal & Gall Brokers

^

Receive Nominations |

And Inflation

S. D. Harnden has been

;

inated

By GILBERT E. JACKSON*

:

.

I

President

of

nom¬

the

Put

and Call Brokers and Dealers As¬

sociation, Inc. by. the Committee

Former Advisor to the Bank of England, Economist of the

i

for

■

Fellow,; Royal Statistical Society, London

•

j

x

on

Bank of Nova Scotia, and Member Canadian War

Nominations.

Balson

Labor Board.
.Canadian ^Economist Decries the Special Pleading for Individual
Interests, Which Has Been the Mainspring of American Conduct in

B. M. Balson, of
Durham, add A. A.
Daniel Filer, Inc., were
>

and

Feder of

,

nominated

11

directors.

as

| Foreign Trade. ; Declares That the Canadian and U. S. Tariffs of
1930-1931

Blocking Trade Channels, Climaxed Our Previous "Suici-

dal'v Behavior. 1 Professor Jackson Adduces. Statstics

Showing
j That Both in Canada and the United; States National Income Largely
i
Depends on Export Industries. Stating That From 1925 Onward
the North American Capitalist Has; Performed the Job of Global

j

j Pump-Priming.
,

j
i

He Pleads for the Pending Loan From Canada

| to Britain, and Urges That Both the U. S. and Canada Conclude
Series of Such Arrangements "While There Is Still Time."

-l::

No

sooner

does

,

start

one

talking about

abroad, than all the questions come
barriers, com' v*C. /.
;
■.
«

Bank of Montreal-

Canadian Bk. of Commerce

a

"

Royal Bank of Canada

postwar markets
up, as to means of payment, trade

include

any

Andian National

branch

no

of

economic

our

^pn^e

branch

no

of

You~ may,.. remember

s.

figure in
Edward

usj still

Canadian Western Lumber
Electrolux

great

a

my country, the late Sir
Beatty, whom some of

Jack Waite

Sir Edward, was

mourn.

Minnesota :& Ontario
•

V

-

- v

j *An address by Prof. Jackson

v;

;

^

c

the

before

Gilbert £r Jackson
>.

■

.

product is now mar¬
keted, the cost of which does not

Chemical

.x;;i

York,

Association, x New
14, 1946. ^' V ; Vy

Feb.

no

(Continued

on page

Paper Co.
Nipissing Mines
Noranda Mines

Market Re¬

search

Mining

Massey-Harris Co. Pfd.

His most
,••••?

•

Mining

Kirkland Lake Gold

Canadian Pacific: Railway, and, of

;x^\,vxx.

.«•

International Utilities

Chairman and President ; of the

were,
instead
of
examining

trees.; •;

j

Dredging

Canadian Pacific Rwy.

•

damage to the chemical industry.

•*4rt—

j Almost

r •

wither, without at least some

can

Bulolo Gold

L

;

life

economic

our

Brown Company Com. & Pfd.

{

without

•

cojurse, its spokesman.

the.

life

benefiting
the chemical industry. The con¬
verse is equally true, that almost
expand,

can

Corp.

Anglo Huronian
Assoc. Tel. & Tel. $6 & 7% Pfd.

payment
to
the
chemical industry.. Thus, almost
some

Pend Oreille Mines

?

,

Sherritt Gordon Mines

985)

Steep Rock Iron Mines

.

Sun Life Assurance

Teck

Hughes Mines

Direct Private Wire Service

|1C0AST.-T0:New York

Chicago

-

x

COAST |f

St. Louis>■ Kansas Cily

■

Boat, Inc., Common

32

Merchants Distilling Corp.v Common
Seneca Falls Machine Co., Common

Standard Aircraft

^

4;

t

DIgby 4-8640
Teletype NY 1-832-834

Products, Common
V

i

$

• •

Y'

^

^

t

f{ r

-

J"

«

r

\
11

1 '

Harrison 20T5
Teletype CG 129

*?
' "

f.

ST. LOUIS
\ " \

' - \

X:'Wj,•

■*}

<<

V

\

M

-

.

,'

.

Toronto

j

,

St. Louis &

I San Francisco

'

<\ V-

LOS ANGELES

Whitehall 4-5263

Harvill

COMMON AND PREFERRED

PANAMA COCA-COLA

Corp.

Jeff. Lake Sulphur Com. & Pfd.

Quarterly dividend paid January 15,1946

Lane Cotton Mills Corp.

•

*•'/? /;'> * ■*'

r,

Rademaker Chemical

Dividends paid 1945
r"W
V'i | " 1

New

-

•

Stand. Fruit & S/S Com. & Pfd,

—

Analysis

price

on

-

PREFERRED

$2.25
V';*

•

Approximate selling

Reda Pump

.

$"

7

$1

34 Vz

—

request

y

qAllen & Company

.

United Piece Dye Works

•

'

\

Established 1922

;

BROAD

30

T. J. FEIBLEMAN & CO.
Members New

41 Broad St.

X*

New Orleans 12, La,

Carondelet Bldg.

<.

Bo. 9-4482 "

Bell Tel.—NY-1-493

{.

'

,

xx,.

>

ESTABLISHED

.

.

Orleans Stock Exchange

New York 4, N. Y.

Soya Corporation

1914

Specialists in Soft Drink Stocks

!?NEV/

Telephone: BOwling Green 9-7400

•;

STREET

YORK 4, N. Y.

'
Teletypes:

Teletype:- NF 1-375

-yv

HAnover 2-2600

1-1017-18 &

NY

Direct

-

Los

*'

Angeles

Wires to

1-873
.

•

vy

and New Orleans

Colony Railroad
Eastern Sugar

Railway

Supply Co.

f ANALYSIS. ON

Missouri Pacific, old common

.

New

REQUEST

St.
on

-

Telephone:
y

Chicago, Rock Island & Pacific, old
x

\

t

74 Trinity Place, New York 6, N. Y*

■

Old

Franklin

x.

.

Pledger & Company, Inc.

Incorporated

r.

Broadway, New York 4X

com.

& pfd.

Associates

;

and preferred

Common

&

Preferred

York, New Haven & Hartford, old common and pfd.

Louis

&

San

Francisco, old common and

preferred

Upon

Quotations

Request

Request

FARR & CO.

W. J.

'PETER MORGAN & CO.
Tel. BA 7-5161

1-395

Montreal

-

COMMON AND PREFERRED

Baum, Bernheimer Co
KANSAS CITY

White & Company

31 Nassau Street

NY

New Haven

Board of Trade Bldg.
CH1CAGQ 4S
|

Broadway

NEW YORK

fff'

Analysis

HAnover 2-0980

Teletype

STRAUSS BROS.

:

General Public Utilities Corp., Common

7

New York

Members New York Security Dealers Ass'n

y: :

'Y-V;

St., N.

WILLIAM
Bell

Los Angeles

Crescent Public Service Co., Common-

50

52

New York 5, N. Y.

Tele. NY 1-2078




,

50

•

■

Banigan & Co.
•

Established

Broadway, N. Y. 4

Carlisle^ Pa,

^

1904

•

'

New
.;

HAnover 2-8380
Scranton,

Members

Pa,

X

-

incorporated,

120
; ;
63

* X

t

MEMBERS N. .Y-. SECURITY DEALERS ASSOCIATION

Wall Street, New

York 5, N. Y.

York

New .York

Coffee

<fc

Stock

Exchange

Sugar Exchange

'

Bell Teletype NY 1-897

WALL

ST.,

NEW

TEL. HANOVER

YORK

2-9$ 12

.

THE COMMERCIAL & FINANCIAL CHRONICLE

962

negligible.
;

The

indicated

situation is best

the

see

the

by

brisk

bidding

which marked two important flo¬

the week, one a
corporate issue, and the other a
long-term bond offering by the
Port of New York Authority. The
tations

during

latter

which

set

bonds

frater¬

The investment banking

nity

not particularly
im¬
with the Treasury's an¬

of

a

000,000 of 2Ms at 99.52.

That is the bankers did not read
into the announcement any con¬

|

Cutting Coupons '46 Style

in the
j Normally, the investor is gen¬
government's cheap money policy/ erally accepted as the party who
It
was
accepted
merely as a sits back and "clips his coupons,"
straight action by the Treasury to But the shoe has been on the
apply part of its tremendous and other foot for a long time now
unneeded cash balance in a man¬ and gives promise of pinching a
whole lot more before the inves¬
ner designed to reduce its carry¬
tor becomes used to the new style.
ing costs.
.V
crete indication of a change

For years, or ever since

•

j Since by far the bulk of the

securities to be retired are held

1935,

thereabouts, corporate issuers
have been "clipping" the cou¬

or

by commercial banks and only

small part by Re¬

pons,

similar

or non-bank
investors, the overall effect on

of 3 Ms

of 50

part of

as

operation, with

maturity.

of

Port of N.Y. Authority

>

Tuesday the Port of New
York Authority opened bids for
its offering of $18,757,000 of new
40-year general
and
refunding
bonds.
Four banking groups were
in the running with the successful
syndicate paying the issuer a price
97.30

for

I%s

for

The

price

98 V4.

The

three

sought the bonds
lenders
99.55.

reoffering

on/

other

m

from

'

..

Should

;

circlem

USSR.

it

Pacific

188,372 Common Shares sole capitalization

of

bids.

will

not

suffer

least

at

two

competing

for

k

c. o

u

n

stronger

than

•]\

v

•

J(

-

.

.*• •.. v

••

■

..

v- v-.

.

headed

Stuart &

Current Market 2Vi-2%

by

Halsey,

Co. Inc., was showing

real interest

any

tial 'business.'

in this poten¬

-v-;;*

■;

"

Circular

on

request

"

'

'' f'

*

y *

~

But

now

it develops that Mor¬

Stanley

gan

Co. and associ¬

&

ates, has been doing

figuring

HARDY & HARDY
11
,<

too

and

anc[, if

as

3-4490

rivalling bid when,

a

•

WHitehall

quiet

some

this prospective- deal
intends to be in the

on

field with

Broadway, New York 4, N. Y.

Teletype NY 1-960

ballerina

a

,

Herbert M. Bratter

the

counts

y,

refinancing ? is

the

undertaken.

v.

•

There is

actions

ences

no

in

Mme.

"I

Olga

25 —about

am

have

I

else

known

never

international

confer¬

during the past few

years

have served to drain much of the

ic

struggle against the Nazis de¬
veloped here and elsewhere. Rus¬
insistence

in
throwing its
weight around may
achieve V immediate
diplomatic
"victories," i but does, not build
goodwill, in which Moscow ap¬
pears not to be interested.
Per-

nbw-found

any¬

than the fight of the
Russian people against capitalism
and fascism."'

If the United

is to play
cooperation"

States

■

doubt that Russia's

sympathy which the USSR's hero¬
sia's

.■V.

I am
daughter of the October Revolu¬

thing

.

,

;

ballerina,
said:

tion.

American financial and eco¬
nomic assistance in carrying out
that plan still remains to be dis¬
closed.
■;
"
■
„

syndicate,

the

the age of the Soviet regime.

To what

USSR

;

.

understand

Lepeshinskaya. To Miss Curie the

't r y

ever.

famous

a

the

y

to

seeking

Miss Curie while in Russia visited

is y to

.

e

voluntarily

suspicion and hatred of
foreigners by the Russians, the
writer was struck by an incident
recorded
by- Eve Curie in her
book, "Journey Among Warriors."

t"

upon

Until the other day it was in- 5
dicated that only one banking

Earnings 380 first 10 months 1945

a n

than

extreme

Year

extent

•

,

1

rather

unemployment.

In

Rus¬

Five

future it is indicated that

project

want

duction

fomrth

sia's

out help,

endure

the

around

to

goodwill it ulti¬

our

get

on the
theory - that a capitalist country
always export its surplus pro¬
can

will

of

n

e

as now

near

the

mately
j

"capitalist en-

expected, under¬
take to refinance its $55,000,000 of
collateral trust 4V2S, due 1975, in
the

line

ma

Railway,

■'^yyyyy.

-

that without

firm

a

front

;■

Northern

1

haps the Kremlin feels confident

Stalin,

traced

y-'-V

the

to

*

constituents,
has
again

bidders

Two Groups to Bid

Soviet

e r

broad casting

was

98.056

i

tci his Russian

l%s and their

as

ranged

the

to

"Onion,, Pre-,

cost to the Authority of 1.358%,
by far the lowest in the agency's
history.
•'■''''v'U-,
;

Holds Russia Better Able

While Washington is
discussing actual and contemplated pro¬
posals for large-scale Government lending abroad, including a loan

interest

an

Billion.

Repay Because of Her Gold Than Britain, but Notes That Because
Russia's Foreign Trade Is Insignificant,
Repayment With Goods
May Be Difficult. Sees No Chance of Payment of Czarist Debts.

On

of

!

From Germany and
Required Has Been Reduced

Frcim $6 Billions to $1

These bonds,

reoffered by bankers at
106 to yield 2,75% to the buyer.-

that is refunding at stead¬

BOST INC.

y.V;;:?

View of Reparations Exacted
by Russia
Other Axis Partners, the Amount

in

were

ily lower interest rates, and the
end is not yet in sight.

serve central banks

block

a

September

basis,

minds

By HERBERT M. BRATTER

Washington Observer Contrasts Attitude of Russia Toward Capitalism aiid the Proposals for a Loan From U. S. and Points
Out That

re¬

company

ah equal amount of new 2 Ms

this

next.

relatively

the

the

maturity, sold

years

a

and quite evidently
expectation
was
in the
of the group which bid
in Southern Pacific's latest $50,-

2%

proximately $2,770,000,000 of ma¬

a

financed

look for the yield basis on gov¬

turing certificates, notes and bonds
between March 1 and March 15

to

.

week

This

a

get down to

Expect

Finance

The latter were reoffered
publicly at 101 Vz to give the buyer
a yield of 2.81%
,..
■

basis
low record for

new

Does Russia

coupon.

cost

a

on

ernment bonds to

nouncement that it will retire ap¬

Southern Pa¬
$50,000,000 of 40marketed only last
ago

refunded

year 3%
September, with a new issue, of
similar maturity carrying a 2%%

quasi-public, body;
Bankers now are inclined to

!

was

pressed

sold

was

fortnight

cific

'

light in which investment

bankers

A

viewed as

the money market is

r

Thursday, February 21, 1946

its

"international

role

and

help world reconstruc¬
tion, Russia's claims for attention

•„

None of the

canhot be overlooked.

other United Nations has suffered

greater losses

3

made greater
sacrifices
in
defending
itself
against the Axis. It was not sur¬
prising, therefore, that Premier

any

Stalin should
terest in

or

have expressed

in¬

large loan from Amer¬
during his conversations last

ica

Fall

with

of the

members

in

committee

postwar
and

a

later

with

House

Moscow,

Senator:

Claude

On both occasions Stalin
put the measure of the USSR*s fK
Pepper,

Southern Airlines, Itier

Sold

—

Quoted

'J .""/''M, y£

$

"c„•

,

.

*Sr'lU

A. Frank-Guenther Law

INDUSTRIES

Preferred

'I'M

Unit.

BURNHAM & COMPANY
ESTABLISHED

74

1914

members New York Stock
Exchange
associate members N.Y. Curb

,

GENERAL PANEL

.

Members N. Y. Security Dealers Ass'n

'

15 Broad

Street, New York 5, N. Y.
telephone: HAnover 2-6388

Trinity Place, New York 6, N. Y.

Telephone: BOwIing Green 9-7400

S. Weinberg & Co.

Exchange

/

1000)

on page

♦CONSOLIDATED

f Hartman Tobacco.

,

■*'-■»«\\

i

...

Hoit.Rqse&I]rqster

(Continued

?■< i*/*

'■Airlines, Inc*
>'

—

Great American.

>

Industries

Continental

Nickel Offsets, Ltd.
Bought

Benguet Cons. Mines

Chicago and

Getchell Mine, Inc.

:

60 Wall Street

:

Bell

Teletype: NY 1-375

GLOBE AIRCRAFT

Telephone

.

•:.

Whitehall 3-7830

New York 5

Teletype

NY

1-2763

^SILVER CREEK

PRECISION

BANKS
We

are

-

g

DEALERS

prepared to bid firm

Curb and Unlisted

Bought-^rrSoW-r~^uqtc<i

:

Carbon Monoxide

Securities

on

;

*Prospectus

Request

on

v

\ :

Eliminator

BLOCKS of SECURITIES

American Insulator

MICHAEL HEANEY, Mgr.
WALTER KANE, Asst. Mgr.

Prompt Action—Offerings Wanted

Preferred

&

Common

J. F.

Reilly & Co., i«.
Members

Blair F.

Claybau^h & Co.

Joseph McManus & Co.
Members New York Curb
Exchange

Members Philadelphia Stock
Exchange

WHITEHALL

3-0557
Tele. NY 1-2178
72 WALL ST., NEW YORK
5, N. Y.
Harrisburg: - Pittsburgh - Syracuse - Miami Beach

Chicago Stock Exchange

,

39

Broadway

Digby 4-3122

New

York Security

40 Exch. PL, New

*

PETER BARKEN

*

HAnover 2-4785
Bell

New York 6

32

Teletype NY 1-1610

System Teletype,

Broadway, New York 4, N. Y.
Tele. NY 1-2500

Tel. WHitehall 4-6430

Dealers Assn.

York 5, N. Y.
NY 1-2733-34-35

Private Wires to

Boston,

Chicago &

Los Angeles

ACTIVE MARKETS:

KOLD-HOLD MANUFACTURING COMPANY

I

i

-

Manufacturer of Electric
A low

Refrigeration Equipment
priced speculation

Billings & Spencer
Citizens

-

-

»

Getchell

Common

:■
-

PROSPECTUS ON REQUEST

■

FRANKLIN

COUNTY

COAL

COMMON

Common

\

•

Public Service

;

Rubber

&

Pfd.

Bought—Sold—Quoted

CO., Inc.
,




,

Soya Corp. of America

Members N. Y. Security Dealers Ass'n
111 BROADWAY, NEW YORK 6, N. Y.

BArclay 7-0570

'<

Crescent

Master Tire &

Kingan Co.

CIRCULAR ON REQUEST

F. H. KOLLER &

JCommon ,v

Brockway Motors

and

■

j

Great American Industries
.

Mines

Utilities

SIEGEL & CO.

~

»NY 1-1026

39

Broadway, N.Y. 6
Teletype

DIgby 4-2370

NY 1-1942

P. J. Stcindler

HARRISON &. SCHULTZ
64 Wall St., New
PUn. HAr.nvA,

2-7872

York 5

Tele. NY

Members New York

11 Broadway, New
Digby

4-0330

& Co.

Security Dealers Assn.

York 4

NY

1-1340

*\.K'i

v.-,i

163'

Volume

Number 4466

THE COMMERCIAL & FINANCIAL CHRONICLE

Railroad Securities Againflte "Cross-Roads"?
By W. WENDELL REUSS*

.

.

>

V-;

We

^

are

pleased to

that

announce

Mr. Reuss Enumerates Past and Future

Uncertainties Affecting Railroad Earn¬
ings and Contends That Despite These Uncertainties There Are Rosier
Days
Ahead for the Railroads.
Sees Possible Freight Rate Rise as
Offsetting Wage
Increases and Concludes That Railroad
Operating Results, Notwithstanding Poor
Early 1946 Reports, Will Compare Favorably With Highly Satisfactory 1944
Showings.'
i

Price-wise,

-

now

occa-

last

three

years.

H?'%JHh

Hr

>

y:-3Wjsmk

'

In the past,
a

holder

_

faced
fects
1.

Losses Resulting

Load

BpL/ arisaHB

f

-

1

u

among

W-JguM

2. Pearl

Har-

£ bor;

'

.Wheeler'sf'

>.

'

/\ leadings toward

a

special tax

.

profits

realized from defaulted railroad securities;
on

4. The uncertainties of the extent
and cost of

a

rise for the

wage

railroad

employees,, and what
relief, if any, would be afford¬
ed by a rate rise;
5. Invasion

of

Africa

(by

Americans);

the

T

Invasion'of, Italy

6.

and subsequent collapse of Mussolini; r;
7. "D"
Day
and
the
sweeping
gains made across Normandy;

v

8. The demise of President Roose9.

"V-E"

|0.

Day for .Europe;;' '

;

"V-J" Day for the Pacific.
Further Uncertainties

v;

Now,; railroad security holders
faced with strike-reconversion

are

influences—i.

how long it will
automobile-steel-;
strike effects have been eliminated, reconversion completed and
the
upward spiral^1 in railroad
freight traffic resumed; also, con¬
fronting railroad security holders
currently is the uncertainty of
how much further pf a wage rise
will finally be accorded railroad

be

before

':i,

'

-

t

'

great
and electricity.

of

users

quantities
-1

'

'

of

e.

the

services

and this trend

to

Each of the

e

at

moment,

1

companies who have adopted en¬
lightened
views on what they

v

electricity
i s
showing some
reduction, this
i s
primarily
due to'the de¬

yJ-3

.

•.

"

Conspicuous achievements
years have included a
big increase in business with very
of

securities

v

or no

plant

*An address delivered Feb. 18,

ry

2nd

|

\

Shares, Inc.

.

*♦

I

<

"

that

investment

in

per

■'

pleased to

are

v""

increase in outstanding
so

dollar of revenue has
declined
does
not
sharply;
also, v funded
promise to affect earnings se¬ debt, per dollar of revenue has
riously because much* of the war. been-going down?. Many**millions
load -was
carried v at
little
or
of dollars
of - inflationary items
have been removed from plant ac-i
no profit. ' On the other hand, gs
counts, Depreciation policies have
soon as appliances are back on the
market in quantity, the companies been much more conservative as
reflected in higher annual charges
can do very aggresive building of
their commercial and residential
^Excerpts from an address by
loads, which loads return three or
Mr. Young, Public Utility Analyst
four times .as much per kilowatt
for-Edstrnan; Dillon&c Co.; before
hour as the industrial load which
the Bond Club, Philadelphia, fla.*
has been lost. Once the log-jam is Feb.
18, 1946.
?. * '
broken in the construction indus(Continued on page 1004).

We

■

recent

little

Harold H. Young

that

announces

Union Trusteed Funds, Inc.
./I

.

February 14, 1946

sound.

cline of strict¬

This

undersigned

American Business

should do to make their companies

ly -wartime
business.

.•

!

,

Affiliated Fund, Inc.

?

sion, and the managements of the

of

output

V*

s

has been elected President and Director

regulatory bodies, especially the
Securities & Exchange Commis¬

u e.

Whereas,

,*■•..

-

"V •">!.

V'-

% jlliS Harry I. Prankard,

ity companies have been greatly
strengthened.'
"Credit
for
this
should be divided between the

the

•.

I®':

The financial structures of util¬

;t h

"•

.

of the util¬

n

: -y- •?:

gas

use

t i

'

PHILADELPHIA

.'"-Aj

..i;

as

One of the basic

conspicuous
growth in the

n

.*

Fruitful Field for Invest-

sistent 'i and

o

j,

V'':••

•

con¬

promises

York

LOS ANGELES

•

-iV■

try, hundreds of thousands of new
homes- will be built, all potential

c

''

*•«>+•.j

February 14, 1946

ity

Reuse

Wendell

W.

.

a

CHICAGO /

.

.

.

■1
■■■■■■■

3. Senatq r

2nd

Operating Company Stocks.

is the

record of

-

C( 63 Wall Street, New

\

1-7

Many Utilities Furnish Bet¬

the most desirable mediums of investment.

r.easons

Nazis in Europe;

Holds

utility^securities have estabhshecP themselves firmly

:.r Pqbljc

gains of the

:

Is in

ment

success

'

INCORPORATED

\

-

Capitalization Structures of Many

Industrials and That

ter Returns Than

early

sweeping ly

o

Notes Improvement in

-

Utilities and the Beneficial Effects of Low Interest Rates.

^wk

of:

■ v

Lord, Abbett & Co.

From the Discoptinuatipn of War Time Industrial

Both Preferred and Common Stocks of

ef-

•

•••

By HAROLD H. YOUNG*

d

Analyst Points Out That Public Utilities Have Vast Opportunities
for Expansion and That the New Business Will More Than Offset

;

of

the

The

•f

7

.

I railroad
s e curities, pricehas
wise.,

V

Trends in Public Utility Values

HMPMHHME

in >the

and

has been elected Executive Vice-President

upon so

sions

-r^'-I-'.•

Harry I. Prankard,

confronted

are

influences that have ben experi¬
many

'■

security®

-

with another of those "cross-road"
enced

has been elected President

it,

railroad

holders just

Leon Abbett

V-'

INVESTMENT -i SECURITIES

THAT

ANNOUNCE

FEBRUARY

WILL

ON

AND

AFTER

13/ 1946 THEIR; OFFICES
LOCATED

,BE

AT

,

:;•>>

that

announce

1946 by W. Wendell Reuss of Mc¬

Laughlin, Reuss & Co. under aus¬
pices of Buckley Brothers at Hotel
Alexander, Hagerstown, Md., be¬
fore

representatives

of

group

richard l. weidenracher
is

of

now

associated with

SUTTER
PRIVATE WIRES

1852
.

TWX

,

NEW YORK

.

SAN

us.

1089

S.F.

FRANCISCO

•

LOS ANGELES

banking and other financial insti¬
tutions.

(Continued

on page

999)

Robert|L.|WhittakerJ& Co.
Members

Philadelphia Stock Exchange

&;>/'. &-Vjr>V':v-

AETNA

STANDARD
?

J'

s

Directors
Stock

V*: V--v-Cv;

y

1420 Walnut Street,

yj- -yv.-iV:iVV't

•.

Philadelphia 2

KINgsley 2963

Vote

February 15, 1946

ncing

that

Split-Up

Leading

designer and manu¬
of
heavy industries
equipment. Potential domes¬
tic and foreign markets indi¬
facturer

cate

"boom"

time

ahead

company.
- ; -v •
Available at less than

earnings,

as

earnings

HENRY

8

times

15

sues

in

lends

WE TAKE PLEASURE IN ANNOUNCING THAT

competitive
is¬
similar lines, equity

Itself

for

is

Inclusion

in

c.

russell

cerpts

of

working
better

Balance

„

June

capital
than

earnings

show

position

us

in

our

$2,000,000

a

HAS BEEN

RELEASED

FROM

ACTIVE DUTY

■v

and

AND

IS NOW ASSOCIATED WITH

US

•

-333y'i

'Vy.t.v." 'v'^'•'>> •>'■■>■3. :,'Vvyy"}-y-

y

'

donald

per share of $4.16.

Security Dealers Ass'n

Exchange PI,, New York 5, N. Y.




DEPARTMENT

■■

of

LUCKHURST & CO.
40

;y';;3

ex¬

Copies of Report
Available on Request

Members N.Y.

with

MUNICIPAL BOND

Commander. U.S.N.R.
■

sheet

1945

now associated

lea

■

portfolios of all discriminating
investors.

Jr.

times

for

against

GRADY WELLS,

for

UNITED

;v

mACkinndn

STATES

&

cd.

GOVERNMENT SECURITIES

STATE AND

MUNICIPAL BONDS

Reynolds & Co.
Members

New York

General Motors
stock

Exchange

120 Broadway
"

Tel. REctor 2-8600

HI

new York 5

^

Building,

TELEPHONE CI RCLE 7-49Q7

FEBRUARY IB,

1946

New York 19, N.Y.

V

A.T.&T. NY1-25D5
'

/

..Western Securities Co.
— Cecile
Bates is forming Western Securi¬
KENNEWICK, WASH.

'

■;

Corporation, States 90% of RFC Loans
RFC Has Taken

Finance

busi¬

C, to engage in a securities
ness.

Have Gone to Small Business.

rv

According

in amounts of

RFC
the

..

Stock

Baltimore

&

Exchanges and other leading exchanges

$. CALVERT ST., BALTIMORE 2
Bell

New

Teletype

York

offices

direction, and SWPC

under RFC

personnel : engaged , in
making
loans/to small business have been

own

small business loans, has

also serviced all SWPC loans," Mr.

BOSTON

RFC

Henderson said. "The 31

re¬

gional loan agencies, from Feb. 21,

Spinning Assoc..

1942, through Dec. 31 last—a pe¬
of three years and ten and
one-third
months—authorized a
riod

aggregating
$220,378,000 to small businesses,
or an average of about $33,000 per
loan,
A Thus,
the
transfer
of
total

Dwight Manufacturing Company
Globe Steel Tube

\

of

6,661

•

loans

'

Johnson

Automatics, Inc.
LOUISVILLE

Naumkeag Steam Cotton
Parker Appliances

United

Elastic

:

-

,

■

; American Turf

Corporation

Waltham Watch Common

BOSTON

|

1st

H. Wood

as

New England Lime Common

Building, announce that George
W. Dean, Lieutenant USNR, has
returned

to

firm

the

Added to the sales de¬
Herman E. Aulmann,
Jr., 1st Lieutenant U. S.
Army Air Corps, and Robert D.
Lacey, formerly Lieutenant Com¬
mander USNR.
;
v' / /'

president.
partment

are

H.

formerly

Hassing,

has become as¬
the firm as head

with

analytical department.

;

!

the

of

P A.

is made of the

10

Private New York Telephone
REctor 2-5035

Philadelphia

Rambo, Keen, Close &
Joseph B. Keen,
Chairman of the Board; L. Paul

Company

Memos

Los

■j

on

York, Philadelphia and

Angeles

Stock

'

•

'

'

W. Wells & Co.

ing

Exchanges

states

Los

A number of

investigating the rate
situation, but no particularly dras¬

tic

orders have yet been is¬
Gas & Electric has

rate

have

to

About

the

Angeles

Opens
business

investment

West 72d

New

York

name

Listed

N. Y. Stock Exchange:

on

Central

Hudson

Ilium.

Elec.

the in¬

match these records in

ZW:'>Z

Consolidated

Gas

St..

&

Edison

Dividend
Rate

About

13

Electric—

33

'

N.

Detroit

Y.w1—,—

$0.48
1.40

-

35

;

Edison

Florida

:

v

Power. Corp.»,—

;

—

-Z.

.

Pacific

Electric

Gas. &

Philadelphia
Public

Electric

Southern

California

1.02

4.0

4.64

2.92

14.4

1.90

15.2

2.17

20.8

' } 1.20

.

:i;4.2

1.59

4.5

2.53

14.6

37

—_

1.50

4.1

1.72

21.5

■

1.20

•

Electric

Curb:

„

under

the

firm

19.0

'
$0.60

13

$1.04

4.6%;

2.00

4.4

3.60

4.2

4.41

103

& 4.00
2.75

•

T.—46

1_———

:

1.95

87
12

Illuminating

Gas '(Baltimore)——

Electric

Light—

ij'
■

3.9

v

19.8

21.7

3.29

21.9

30

: *

13

y * .60

Power

Public

Dakota

32

1.50

States

84

4.00

4.8

it

4.97

v

16.9

34

1.60

4.7',./;

1.99

y

17.1

1——

Pennsylvania Water & Power
Electric,

———

Tampa

.60

2.90

10.4

.95

13.7

2.10

15.3

2.0

'.Wl

•

4.6

4.7

4.2

Averages

17.3

/o

(Continued on page 997)

between

SPARTANBURG

Southern Advance

Capacity—900,000 barrels annually.
Book

•

Good

;

war

Common Stock

Common Stock

>

the facilities of our direct

/

system

Properties:;

-

our

:

ready to start.

active market in the stocks of

an

public utility companies and through

trade

Grinnell Corp.

•

many

;

AND

period.
•

Company would benefit substantial¬
ly from tax reduction.
Oregon's
huge
highway
program

We maintain

Textile Securities

Bag & Paper Co.

value—around $18.

through

Southern

y

V:

are

private wire

;

especially equipped to
those

markets

various

offices

in

/

,

•

located..

where
are

.

1

•

."'.'"'Z ' '.

'.

V

o

about

\2YZ

Circular available

OFFICE

'

BOSTON

9,

1990

(Established

1606 Walnut St., Philadelphia 3

SQUARE

MASS.

A. M. LAW & COMPANY

BOENNING & CO.

LERNER Qc CO.
:;

•

Pennypacker 8200

Teletype BS 69.

Private

Phone

COrtlandt

L. 0. 61

N. Y. C.

WHEEL0CK & CUMMINS
Iowa Power &

•«

/•

i

Light Co.

'•

•.*

.

•

Utica & Mohawk

common

Empire Steel Corp.
Pittsburgh

"Makers of Utica &
•

United Light & Rys.
Preferreds

'

common

INQUIRIES INVITED
;

Common

H. M.
BUILDING

MOINES

9,

IOWA

Bel) Tele. DM 184




Byllesby & Company

PHILADELPHIA

Stock

Tele. PH 73

England common

Robbins & Myers common

//

MOHAWK VALLEY
INVESTING COMPANY
■

OFFICE

Exchange Bldg. Phila. 2

Phone Rittenhouse 3717

Northern New

Mohawk Percale Sheets"

Sterling Motor Truck
Warner Co.

Deep Rock Oil common
Federal Water & Gas Co.

com.

Railways

Vinco Corp.

Packing Co.

Chicago, So. Shore & So. Bend Ry.

Cotton Mills

Botany Worsted Mills pfd. & A

Preferreds

EQUITABLE

American Gas & Power common

Inquiries Invited

Philadelphia Co.

INCORPORATED,

.

Teletype SPBG 17

UTICA, N. Y.
Dealer

187» *

7-1202

DES MOINES

•

ESTABLISHED

SPARTANBURG, S. C.

PH 30

*
to

Paine, Webber, Jackson & Curtis

1892)

Gilbert J. Postley &

INC.
'

29 BROADWAY,

-

238 Genesee St.,

Tel. 4-3195-6

Utica: 2, N. Y.
Tele. UT 16

*•

■

12.5

23.7

4.75

;

3.8

ink

.;

Utilities—r«y._

Service——

Missouri
Montana

Mountain

;

Power

Power

Hartford

18.3

y': 4.2',4

New York

on

4.5

19.2

y-x-z l.cs

29'
1;—-

Averages.
Listed

v

V-

2.00

17.6
:

37

—.

Edison

25.0

3.8

45.

.

20.1
,

4.5

.80

29 :

Colorado

Service of

1.08

1.60

ID:

42

Indianapolis ^dwer & Light-—,

1.74

4.5

18.4

1.80

4.6

^.3.60

18
89

///ZZ

Lighting

Power

23.2

$0.56

4.3
-

•"

Houston
Idaho

Earn.
Ratios

y

3.7',£

y

1.60
1.20

27

■

Share
Earnings

Yield

About

V /.

Edison

Commonwealth

of W. W. Wells & Co.

City,

industrials

on

dustrial list.

in

year,

a

to

rates

reduce

$25-30,000,000;

decline

as

(1902),
(1902), Pa¬
cific Lighting (1909), Pacific Gas
& Electric (1919), North Ameri¬
can (1909), and American Light &
Traction (1904).
It would be hard

"invited" utili¬

state

that

utility

on

Philadelphia Electric

Gates and the Public Service

in

dividends

Cleveland

Pacific

been ordered to reduce natural gas
rates by $3,500,000,
Indiana Gov¬

ties

much

never

2

"
Hagerstown, Md.
N. Y. Telephone—WHitehall 3-7253
Wire System

an

from offices at 200

Pittsburgh, Pa.
Private

some¬

are

sued.

is

PUBLIC UTILITY STOCKS

•

DES

regarding rate cuts.

Consolidated

Worthington Wells is engag¬

in

38%

general

to

utilities

dropped more than
below peak year payments,

while

recently, presum¬
market ir¬
regularities and perhaps to fears
due

for

average

stocks

"easier"

ably

Duke

W.

40

average

Utility stocks have been
what

record

favorable than for industrial

and rail stocks.. In the years 1920-

—

Cleveland

Request

New York

Common Class "A"

,

-

:

•

Phone 4-7159

high as 71% of peak
year payments, and on rails 86%.
The
utility group contains a
large number of long dividend
records including Washington Gas
Light <1867), Consolidated Edison
(1893), ■ Boston- Edison
(1897),
Commonwealth
Edison
(1890),

■

California Electric

,
_

Walnut Street, Philadelphia

1529

Oregon Portland Cement Co.

Rath

-

more

retary.

Philadelphia, New York and Los Angeles

•..

elec¬

officers
investment

■

Dayton Haigney & Company

Tel. HUB

as

dend

Treasurer; and Harold Barr, Sec¬

Members New

,

n-

of

W

75 Federal Street, Boston

A

—

Kerner,l Inc.:

"BUCKLEY BROTHERS

10. POST

stocks

common

attractive

Price-

Vice-Presidents, Harry F. Green,

Submarine Signal

Market

continue

Price

•'

ail

vice-

a

as

Close! President; and Russell W.
Schaffer, Vice-President, y Other
officers, who were reelected are:
Ormo id Rambo. Jr., Raymund J.
Kerner
and
Edmund
J.
Davis,

Osgood Company:
1« HI •'

earnings

utility

on

1946,

Vice-Pres.

PAUL, Minn.—Harold E.
Wood & Co., First National Bank

firm

Bell Tele. LS 186

Reda Pump

Boston & Maine Prior Pfd,

.

profits taxes.

excess

Yields

Exchange list because it is some¬
what
unseasoned, the
dividend
rate has not yet been officially
Indicated, and the stock is appar¬
ently discounting somewhat the
anticipated large tax savings in

ST."

.

nouncement

2, KENTUCKY

Long Distance 238-9

Textiles, Inc.

We Suggest,

and

compared
with those on
prime industrial
about the same as the over-coun¬
equities. Hirsch & Co., in a review
ter group.
«.
;
•
;
V
Z of the '. utility
stocks,
recently
Pennsylvania Power & Light pointed out that the average divi¬

George Dean Rejoins

tion of the following new

Boston Edison

.

of

Service, with its very
yield, is omitted from the
latter group—this would raise the
average yield to nearly 4.5%, or

New Officers

TRADING MARKETS

..

Curb

has been excluded from the Stock

Rambo-Keen Elects /y

Gas Pref.

PHILADELPHIA

i

souri Public

Commission

Floor, Kentucky Home Life Bldg.
LOUISVILLE

Teletype BS 424

r

.

average-price-earnings'ratio than the

low

.

Co.

Incorporated

N. Y. Telephone CAnal 6-8100.

.

"

of the

ie! BANKERS BOND

MASS.

9,

ment.

PHILADELPHIA,

STREET

~

iness loan program

higher

The yield on "big^
r
board" stocks would be somewhat order to pass on to customers the
lower than the curb issues if Mis¬
savings resulting .from abolition

ernor

Pont, Homsey Co.

I HANcock 8200

small bus¬
of the Govern¬
ZZyZ

indicates relatively little difference

unlisted issues.

forward vigorously the

sociated

Winn & Lovett Grocery

MILK

change in RFC loan onerations.
Managers of all RFC loan agen¬
cies have been instructed to push

Lieutenant USNR,

Ass'n

Merchants Distilling
Louisville

31

somewhat

business to RFC will
not necessitate any fundamental

Francis

American Air Filter

Girdler Corporation

du

cluding out-of-town exchanges)

between the three groups. As might be expected, however, the issues
listed on the Exchange tend toward greater uniformity and sell at a

,,,

in addition to handling

"RFC,
its

Berkshire Fine

The accompanying table of electric-gas operating company stocks
listed on the Stock Exchange, on the Curb and Over-Counter
(in¬

transferred to RFC.

2-3327

Rector

Telephone

Corporation. SWPC
are being continued

Plants

3113

BA

took over

activities of the Smaller

loan

loan

STEIN BROS. & BOYCE
York

"Nearly

loans have been *
———
$10,000 or less."
SWPC's loan

Jan. 28, 1946,

on

War

New

■

.

A.e-nait of these

New Bedford Rayon

Members

,/' .,•/•.

authorizations of RFC

concerns," Mr. Henderson said.

have been to small business

Noxzema Chemical

"B"

Finance Corp., a sharp
enterprises is expected

Z'-V
..
■: ■■
..
"Approximately 90% of all business loan

Common

Unlisted Electric-Gas Stocks

Feb. 18, by Charles B.

statement released on

a

during 1946.

Drug

Emerson

to

Henderson, Chairman of the Reconstruction
increase in bank loans to
small business

Terminal

Bayway

Comparatively Little Difference Between Listed and

Over Smaller War Plants Corporation.

BALTIMORE

Davis Coal & Coke

Thursday, February 21, 1946

Charles B. Henderson, Chairman of Reconstruction

Avenue

ties Co. with offices at 10

6

FINANCIAL CHRONICLE

THE COMMERCIAL &

964

Co.

NEW YORK 6, N. Y.

Direct Wire to Chicago

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4466

163

The Foreign Trade
(

Onllook

By JOHN ABBINK*

•

Senators-' Wheeler

—

Asserts

World-WideDemand for
yj"'i

Loan

Johnson

Through ^Private Sources

Will Defeat

Favors Voluntary Allotments of Goods for Overseas by Exporters
in Order to Forestall Danger of Disruption of Consumption De¬

In

mands and
i

and

Expanding Interference by Government in Our Econ»
omy.
Sees Short-Term Prospect of U. S. Export Totals More Than
Twice the Prewar Level, and a Still Larger Expansion in a Later
Period. Favors U. S.-British Financial Accord as Promoting For¬

•

this

of

record

era.

will doubtless indicate the futility

during
riod

pe¬
wide¬

the

proposed loan to Great Brit-

ain.

Both Senators expressed op-

tion certainly.,
has there been
more

from

fusion

thought

to

imme¬

diately,
in

even

our

own

-

country;
less

n o r

fact

on

tistical

projection

for the

that

ture

1

than

Abbink

John

7.7.,:

Consequently, 1

not expect me

hope you will
to follow too liter¬

ally the title your committee as¬
signed for my remarks at the be¬
ginning of this program, v Instead
of making highly speculative pre¬
dictions
from
fragmentary and
.sometimes
controversial
data, I
propose

Without7 question

>■ \777 77:
months
hopeful guess. 7',*

a

offer

to

comment

some

sta¬

the

productive capacity of the United
States will be put under consider¬
able^ strain
over
the
coming

fu¬

would be bet-

offer

they

to fill domestic and

over¬

requirements, but the stress
can be greatly relieved and much
more quickly overcome if existing
seas

bureaucratic

restrictions

are

re¬

duced

immediately to a sensible
minimum, and there is an end to
talk of indefinite regimentation.
Business

far

is

government

able

better

allocate

to

than

products,

whether of industry or agricul¬
prevailing problems and phe-J
ture.
It has every /incentive to
in foreign trade, and on
be fair,
because its future de¬
obvious developments and trends
pends upon: satisfied customers,
that I hope will prove worthy of
and a comparative few months of
the time we spend in discussion,
all-out production freed from in¬
permitting each of you to draw
expert
restriction
will
greatly
such conclusions as
on

<

nomena

may

seem

Justified.
No

On

now

to

seems

extremely tight situation.
Exporters'

one

Eldorado

It

point all probably will

agree—the

demand

for

products

of every kind is world wide, and

unprecedented.

In

happier cir¬
cumstances this might be consid¬
ered the exporters' Eldorado, with
overseas

what

ease

customers

clamoring for

is

there
who

surprising

are

a

an

that
men

the

retention of con¬
trols contrived during the past
several years, in the hope that
they will be spared the onus of
self-imposed rationing. They feel
it would be pleasanter to hide be¬
urge

hind
*

Address by Mr. Abbink before

the Chicago World Trade Confer¬
ence,

Chicago, Feb. 18,1946.

a Washington directive than
apportion <: shipments : on an
equitable basis themselves.
They

to

(Continued

—

on page

992)

for the coveted

fore

an

up

countries,

order,

there

as

they

trade

world

which

and

the

are

countries

Ballopn

to

free

the

be

this,

are

Britain

;

Frances M.

considered

,

Sen. E. C. Johnson

position to the form of the pro¬
posal and both expressed the view
that there was an overwhelming
sentiment against the measure and

Senator

Downs

&

CO.,

attended

ments

and

members

would

doubtful

was

receive

-

fiiore

-the

whether

approval

Johnson

tor

stated

"in

that

billion

The firm
will

billion

dol¬

lars^

Socialist

six

a

billion

statement that the British loan 'is
in

no

way

a

precedent-for other

loans,'

and yet r every American
school boy should know that al¬
most every European and Asiatic
nation wants a similar loan, and
that

the

must

British

•

loan

will/and

the

set

pattern for jail of
these loans. It is my opinion that
our
State and Treasury officials
who

are

all

to

planning huge loans
world are using the

ior

half billion, plus
for Communist

the

avalanche

an

The British loan is indeed a

precedent,

a

mighty

bad

prece¬

dent."
Senator

Wheeler

view that

expressed the

billion to Great Britain "is

sarily going to

four

or

neces¬

put Britain

on

a

capitalistic

Co.

stated

that Britain's

"was chronic" and that

"

loan

a

trade with
what

:

members

Stock

us

timent

want

charity

or

Let's take

they have
There is no sen¬
in

In

terms,

but

he

"

SCHENLEY
:

did

not

2D

PINE

STREET

NEW YORK

5

"•

r

-

YORK CURB

...

*

;

r-'~

SAN FRANCISCO STOCK EXCHANGE

15DO

SAN

v

,

'

''

EXCHANGE

RUSS

BUILDING

FRANCISCO

4

borrow

all

hands

on.

lay

his

weaken

us

munism.

and

of

it he

That

Also Britain

7;:. V 7,.: §

■t:

By MARK MERIT

Com¬

wants

our

conver¬

Why this capi¬
democracy
deliberately

should
mote

cut its

own

throat to pro¬

antagonistic

political

economic systems is

In

;

this

connection,

on page

rea¬

loan to

994)

effect

into

put

the

use

a

.measures

.

number of'
restricting
,

of wheat and other grains

by producers who use such
modities
their

in

com¬

manufacture

the

products.

restrictions affects

One of these

While

business is rather

our

broadly diversified, these restric¬
tions will, of course,, affect us,
since the distillation of alcoholic

Heywood Wakefield Com.
Hey wood Wakefield Pfd.
Johnson Automatic

Boston Woven Hose

Mass. Power & Light
Mass. Utilities Associates

National Shawmut Bank

is

answer

Ralston Steel Car

.

LOCAL STOCKS

New

own

direct private

telephone»

7

feel about it? The

simple.

quite

The shooting

We're

;

is

war

j

won

were

privileged

part, along with other }
manufacturers, in the production
of

play

a

material

for

war,

and

we're

abide by the
principle that "First things come
prepared
'

now

to

777'7;

■

\;:77:','

•••

7777'■ '{■

dislocations in the
industries affected and the tern- 7
porary.

*

7
1

sacrifices by the American f

consuming public "will," quoting
the" President's recommendation,
"be

a

small price to pay for

saving

lives, mitigating suffering in lib-i
erated - countries, and preventing

All others traded
Our

our

t,'

J

The temporary

Tybor Stores

BONDS

4

going to face the situation realis- ]

first."

N.E. P. A. Preferred

Corp,

we

"war" to win. We

Arlington Mills
Bangor Hydro-Electric ;
Berkshire Fine Spinning

E. U. A. Com. & Conv.

f

production of alcoholic bever- 7

ages.

to

First National Bank

Nicholson File

of

*

and over—but there's yet another

PRIMARY TRADING MARKETS

Brown Go.

cer¬

agencies of the Government

emergency

the

should make this

(Continued

to

Senator

was:

"I have been told that the
we

and

tain

beyond me."

Wheeler's comment

son

The President has instructed

would

sion to Socialism.

First Boston

CORPORATE

i

CORP.

cbuld

strengthen

capital to aid her in her

Collyer Insulated Wire
Dewey & Aimy Chem.
Dwight Manufacturing

STATE AND MUNICIPAL BONDS

of

7 •'

DISTILLERS

capital..He would

like to

•

'

NEW

7

fj: 7:V -7:' >•' 7

con¬

demn American

Boston Wharf

5.
YORK STOCK EXCHANGE

fellow '

our

extra article

an

a

speech Marshal Stalin con¬
capitalism in no uncer¬

demned
tain

series.

business

look at Russia.

a

This is

Americans.
a

advertisement which:

appear an

hope wilt be of interest to

we

and

NEW ENGLAND STOCKS

,

T.'Li

CORPORATION;

beverages from grain, is still

people than each of

40
em¬

NOTE—From time to time, in this space.!
there will

have

we

SCHENLEY DISTILLERS

tically.

NEW

and

also become associated with

principal function..6

factories and 364 plant expansions rep'tyfcjresenting investments of $137,500,000 were launched in y.y:*C
■7:7 Northern California,
' '
v " 7

•

York

Exchanges,
City.

Watson & Co.

con¬

:

anyhow if

require.

we

recent

.

In 1945, 480 new

'

New

the

of

Curb

and

ployees of Gordon & Walther will

democracy."

.

they

what

can

temporary dif77;.
,7':' 77

overcome a

'

problem

and

a

Wall Street, New York
Customers'
brokers

Regarding the value of main¬
taining bur trade to Britain as a
motive for granting the loan, Sen¬
ator Johnson replied that, "they'll

sound basis" while Senator John¬
son

closed

1st;
sen¬

firm will on
general part¬

of the firm of T. L. Watson &

ner

7

talistic

loan of three

a

the

the

of

partner

trolled economies of Europe. They
are the bitter trade rivals of this

now

of foreign loans. It is the foot in
the door, the camel's nose in the
tent.

with

f

March

on

Communist That date become

and

France two and

flict

held

194G. Kenneth B. Gordon the

of

senting the proposal for a British
loan, the State- Department and
the Treasury have not been frank
with the' Congress rand the coun¬
try. Mr. Vinson makes the bold

friends

of Gordon & Walther

dissolved

be

and

Russia—a grand total of 10 to 15
it. billion
to
finance
nations
that

pre-?

the

party for

Join T. L. Watson Go. i

Socialist

\

MEM8FRS

their

and

a

of

arrange^

the

was

Kenneth Gordon to

publicly and officially denounce
Congress.
,
"
;7
.;'> ■" capitalism. The- free enterprise
In his opening remarks, Sena-i
system of America is in open con¬

merely

'

V:

to

there

following the events.

How do

Angeles County alorie Las

President

Club,

Johnson

asked to loan

four

to

Hamilton.;
Harry

Miss Frances M. Weller of

dollars,

one

'

7

Musical Stalls—Ruth

as

OVERING THE COAST
38 states in th* Union.

Weller, ChristiaitJsen-

gard.

Nationalistic China 2

ficulty.

Los

'

Egg—Emily Richards, i
Honeymoon Race — Team of

:777;;77;77777:7'"7'77-7-v7;.

"We

follows:

were as

Musical

American

South

to

to :

And

added:

and

.

ernheim.

our

Said

to build

say,

be¬

gallery,

Race—Gordon Goff. ;;
Saddling Race —Manfred Sob-

well."

it

32

of the .world, .Moreover,

economy

that

Club
Gymk1946 at

ribbons

enthusiastic

the results

France, Italy, Greece, Turkey

loan in

British loan to start

.

note

business

few

to

be

vied

every
country on the
continents of Europe and Asia in¬
dicated they would insist upon a

pressure

for continued reg¬

excuse

ulation.

inter¬

national-

ter

but

Sen. Burt. K.Wheeler

Riding

Annual

Street, New York City.
There
were
plenty of thrills
and a few.spills as the members

—aimost

•

that

other

"When I was in Europe recent¬
ly, not only were the British say¬
ing that they had to have a loan,

at home
prolonged

of

threat

Washington

which to base
a

the

controls.
Now that
the emergency has ended which
required wartime integration of
our
whole economy under com¬
petent directors drafted tempo¬
rarily into the public service, it
is characteristic of the political
figures
who
replace
them
in

What may im¬

pend

buyers

insistent
to

government

of

as

,

leads

con¬

to

of the strong opinion that if the
loan* is- granted it would be a
from

is written, it

added

Seventh

Friday, Feb. 15,
Aylward's
Riding.'Academy^

Opinion Congress

Government could not deny.
Senator Wheeler:

prehension, because the impact of
demand

Street

on

precedent for application for loans

of eeonomieanalysis-and forecast

world

Wall

its

ftana

broadcast

a

situation inspires considerable ap¬

genera¬

Are of

The
held

over
the National
Broadcasting Co. network on
Febs7l6, Senator* Burton- K..< Wheeler (D.),, of Montana, and Senator
Edwin C. Johnson (D.), of Colo-<^——
f——
——»
rado, were interviewed regarding
Both Democratic Senators were

Shipment of fantastic, orders, and
no
terms barred. 7 Actually, the

spread unrest.
At no time, in

Hold 7th Gymkhana

Wheeler

in

West 67th

a

of

our

in : biisiness 'instory

Opinions.

Interested

Foreign
Johnson Proposes Financing

Both

-

'

the

More

Measure.7:7

eign Trade and Holds Cost of Loan, Even if Not Repaid, Will Be
Insignificant to Taxpayers. Looks for Favorable Developments :
From Coming International Trade Conference and Says Problem of Retaining South American Trade "May Soon Become Acute."
When

Broadcast

State

Department Appears
Nations Than in Our Own..Welfare.

^American J'rodutta;4 There Is No Exporters' Eldorado in Sight.
;7

Wall Street Riders

■:vV

Chairman, National Foreign Trade Council

Mr. Abb inkPointsOut-Th at ^Despite

965

connect

York, Philadelphia, Boston and Hartford.

starvation among our former en-7

emies, to help establish a firmer
foundation for peace."

7

J. Arthur Warner & Co.
The

Robinson-Humphrey Company
Established 1894

r

89

120
RHODES-HAVERTY BLDG.
Teletyf*'

AT 288




^

.

ATLANTA

t,

GEORGIA

Long Distance 108

Devonshire St., Boston 9

LAfayette 3300

TWX-BS 208

TWX-NY 1-1950

—

corp.,

Broadway, New York 5
COrtlandt 7-9400

FREE
mark

"

Send

a

postcard

or

letter to

merit of schenley distillers

j

350 Fifth Ave., N. Y. 1,N.Y.,

and you

will receive

a

booklet contain''

ing reprints of earlier articles on various
subjects in this series.
7'
5

THE COMMERCIAL

966

& FINANCIAL CHRONICLE

Stark weather

Opens
Washington Branch

Real Estate Securities

Price
By

WASHINGTON, D. C. —Stark¬

"Bullish Factors Still Prevail

weather

the

out all the gains of 1946, it set us wondering. % We found
real estate bonds selling at 80 that we had recommended • in tnis
column at 4% back in 1942. We saw bonds selling at 104 that we
recommended at 29 in 1943, bonds selling at 88 that we recommended
at 39 in 1944 and bonds selling at 76 that we recommended at 50 in
1945. Would real estate bonds de-$
cline to their low prices of the 1930's in the event of a stock
market wipe

In the first place,

for

occur

after

one-half

the

The

crash of 1929.

a

stock

the

in

Air

for this

PHILADELPHIA, PA. —Stroud
Co., Inc., 123 South Broad
Street/ will
hold
their
annual

affected until
because of existing

&

REAL ESTATE

about

1931

leases

made

SECURITIES

times which did not expire, gen¬

this

party at ' their offices,
afternoon, Feb. 21, just before

erally; maintaining real estate in¬

the

annual

come.

ment Traders Association of Phil¬

Primary Markets in:

At

of the

time

the

market

crash,

j

Hotel St. George, 4's

870-7th Ave. 4'i's
(Park Central Hotel)

*

Beacon Hotel, 4's

/

*

v

construction

a

ing

Invitation

Invest¬

the

labor

SHASKAN & CO.
Members New York Curb Exchange

pigby 4-4950

/
is

now

so

him.

remember

Carolina.

North
Mr.

work

Croom

In his

new

reside

will

sonable

the

municipal

field

State

expect

a

proper

SAN

ad¬

well

as

as

VRANCISCO;

Complete Statistical Information

charges of
properties securing

L J. GOLDWATER & CO.
Members New York Security Dealers Assn.

,

):///

and

care

of by

Teletype NY 1-1203

reorganizations

to

of the main rea¬

IN—

the

and

.

Hotel

St.

ESTATE

and in his

George, which

now

F.

Noyes,

considered

we

of the values of

1932

opinion, five years from
will

wonder

why

such

low prices prevailed in real estate
in 1946.

repeat our advice—

again

/r//

5/57 w, s.
Income

S/60

Alms

Hotel

"B"? 4/47

La

Salle

Madison

/'

ence

of

Is Feared.

the Dangers

Broad Street, New

of

agriculture has been

through a period
swiftly changing demands. Each

time

demand

has

changed,

price/

address by Secretary An¬
derson before the National Farm
*An

Institute, Des Moines, Iowa, Feb.
15, 1946.
(Continued on page 993)
'

the Banking System Resulting From Over-

Security Dealers Association

Yorkl

4

Hundreds of hew hotels were built throughout the na¬
de-^
* 1
'"
business volume and mtionaL hdteL occupancy of 90%
property values resulted in a col¬ is Abnormal and not, a valid ba¬
lapse in the price of their securi¬ rometer for the future. /He said:
ties and in a major contribution "By
the time the new hotels
could. be
to the general financial disaster.
completed,
the
uaw
capacity level.

tion, but within a short time
clines

in /

President,

-

-

precedented
created,
such

as

Colonial travel,

Andrews, Chairman, Public Re¬

thorough study of the hotel in¬

;

of; guests

volume.

by .wartime/conditions/
military and government
will have receded to the

where unwarranted new
construction might easily lead to

point

of

recurrence

a

the

financial

catastrophe which followed World
;

War I.

-"As

a-

result

of

'

If

1

/ov^buildmg,?

he

continued,1 "the guest room
supply in the '30's far exceeded
demands
and
ultimately
more
than

81%

of

the

nation's

hotels

HAnover 2-2100

.

'

Trading Markets Maintained:
■

Broadway Barclay 2/56

■

Non-recurring Investment Opportunities

•

If

!

FOR

not produced a'Real

acquire both mortgage bonds and the equity ownership in
of the country's most important buildings. '
\,v , /

England Theatre 5/83

HELP WANTED

many

Savoy Plaza 3-6/50

Dealers should not let their customers
•

Westinghouse Bidg. 4/48

1930's had

Estate depression,
today's investors would not have the present opportunity to

Broadway Motors 4-6/48 /

;

Poli New

the

'

-

<

'

miss the

opportunity .It will not last forever. '

/

~

//

/

•

POSITIONS WANTED

OTHER CLASSIFIED ADS

Amott, Baker & Co.

J. S. Strauss & Co.
155 Montgomery
Tele.

SF 61

&

62

St., San Francisco 4
EXbrook 1285




Incorporated
150 Broadway *
Tel. BA relay 7-2360

<

were/forced
into
financial
re¬
v\
that organization and first mortgage
bonds on leading hotels sold for as
many cities need properly planned
and wisely financed hotels. How¬ little as 15 cents on the dollar.",/
(Continued on page 997)
ever, he emphasized that present

///

Incorporate!!

41

American

and still is going

dustry's financial structure.,
;
Mr.
Frawley contended

'

York

J

NEW-YORK CITY, FEB. 20—Banking and hotel industry leaders
today; warned, strongly against investing ' carelessly: in new hotels/
pointing out that the savings of countless investors were wiped out
in the aftermath of the wild building boom that followed the first
World War., At that time hotel Occupancy closely paralleled todayfs)

a

Seligman, Lubetkin & Co.
-Members New

|

our

and,

expansion.

American Ho¬
The group met at
the Roosevelt Hotel under the aus¬

<V. T. C. and Land Trust Units)

Tele. CG 660

immediate food

second, how our
markets hold up in the long run.

meet

we

President Kleeman of Colonial Trust Co. Warns
to

pices of the American Hotel Asso¬
ciation, which recently completed

So. La Sal{,e St., Chicago 3, 111.

well

demands

Pointing to" the Widely Harmful Results Caused by the Boom of ,
the Nincteen-Twenties/ Hotel Execuiives Sti-ongly Urge Against-/"
Careless Building and Capitalization of the Present Extraordinary - ?
Volume of Business.
Repetition of Investors' Disastrous Experi¬

lations Committee,

Transportation Bldg., Chgo.

11

in the less comfortable situa-

tel Association.

m$

/

FIRST LA SALLE CO.

Moreover, price relation¬
ships, largely determine, first, how

Resist Posl-Wai

L.

Hotel

Chicago/

Tel. Central 4424

am

Co., New York City; J. P.
Herndon, Vice President, Hilton
Hotels of America, Inc., and Frank

Real Estate Securities
Since

,/ hA'

quite comfortably. But^ actually; I

Trust

ui

V

at that. I
do that

could

Kleeman,

SPECIALISTS
'MMM

Chicago Stadium
'

let

.

Hotel Sherman
~

and

J.

•VvV-'

.

what

The warnings were sounded by
E. Frawley, President, Ameri¬
can
Hotel Association; Arthur S.

SECURITIES
"*V

it go

Clinton P. Anderson

stock

of

sibly 60%

bonds.

We

you

be¬

prod¬

the

the most leading experts in
the /real estate profession r/reai
estate prices today average pos¬

since 1938 retired $1,300,000 of its

REAL

in

Charles

one

ffpr bur/ continued/bullish?
ness f for real / estate bonds.) Take
165 Broadway, for instance. Since
reorganization in 1939, $950,000
worth of bonds have been retired,

SPECIALISTS

and

non-farm

ucts.

were

I could

so

done

/

representing a
ownership of the
property.Real profits will be made
in real estate equities. According
share

large sinking fund operations.
one

them

with

sons

New York 6, N. Y.

HAnover 2-8970

taken

and

OUGHT to be

Calif.—Liv¬

at 31? Montgomery Street;

estate
estate

real
real

.M

tell

hereafter

offices

bonds have for the most part been

This factor is

39 Broadway

;//

.

when buying real estate securities/
select
those bonds
which carry

Fixed

..

economist

an

announce that their
will be located

ingstone & Co.

pairs.

QUOTED

commodities

farm

tween

Overexpansion,
Hotel Industry Leaders Warn

of rentals to meet in¬
creases in operating charges, ade¬
quate labor and sufficient sup¬
plies for maintenance 1 and re¬
justment

CERTIFICATES

to wish I

New Location

to

price relationships among ag¬

ricultural

Greensboro and will specialize in

properly belongs. Under

the

im-

I'm tempted

Livingstone in

by

fun¬

tor

in

,

assumed

of

tions

as

at

materials and
securities salesman covering east¬
much higher in

State control it /would seem rea¬

TITLE COMPANY

will

athlete

trading-corporate securities.

be

ques¬

the future..

the University
of North Carolina and later as a
ern

and

now
on

to
agriculture in

of 1946. It
possible that rent control will

where it

•

also

porta nee

OPA expires in June

then

SOLD

right

damental

former

building

structures.'

//;:/// I Boll Teletype NY

-

,

-

friends

possible.

Agricul¬

„

-

Wm. D. Croom to Staff

for

Economy, and Urges More Production

I particularly welcome the opportunity to discuss the topic
assigned to me: "Price Relationships as They Affect Markets for
Food," This3>
■/■.
/■■// • - " subject, bears tion of being responsible for doing
a
directly / o n
good many of the things that
real problems need to be done." The Govern¬
that, exist in ment necessarily at the present
agricult u r e time has a great responsibility

extended

is

Changed Con¬

Holds There Should Be No Fear of

,

McDaniel Lewis Adds

price, it doesn't seem logical that
many
new
buildings
will
be
erected to compete with present

Members New York Stock Exchange

BOUGHT

Balanced National

drop in while in Philadel¬

phia.

almost no) new build¬

war

was

With

Pt.,N.Y.

of

a

GREENSBORO, N. C.—William
and now the existing
buildings are 100% Tented with D. Groom, of Raleigh, N. C., re¬
tenants clamoring for additional cently but o£ the Army/is now as¬
living and commercial quarters. sociated /with McDaniel, Lewis .&
Building (invest¬
The depression; halted construc¬ Co., Jefferson
ment \ dealers).
Mr.
Croom's
tion as far back as 1930 and dur¬
ing the

4- /

40 EXCHANGE

holiday

dinner

,

Agricultural Production Pattern Must Be Followed

an

many years

Savoy Plaza 3-6'$, '56

•*

was
more

were

does hot exist now. New York has
had

.

York

to all to

apartments and - offices than ten¬
ants;
This
condition
certainly

4'^'s

165 Broadway,

adelphia.

stock

1929

New
There

"over-built."

cocktail

prosperous

/

/

■

were

during

Between Grain and Meats Will Be Altered to Meet

ditions.) Says

tural Surpluses.

erties

not

ANDERSON*

Secretary Anderson, Asserting That Government Has a Great
Responsibility for Fair Price/Relationships; Calls Attention io
Postwar Food Shortages and Maintains New Price
Adjustments
Are Essential.
Holds Policy of Favoring Grain Feeding Must Be /

of Essential Items.

Annual Cocktail Party

P.

// Abandoned, in Order to Export Grain and That Price Relationships

Stroud & Co. to Hold

that the income of the prop¬

was

Exnicios, formerly
colonel

will, manage

CLINTON

Secretary of Agriculture

to Give

market

reason

;

a
Washington;
1420 New York

the office.
Mr. Exnicios in the past was a
partner in Ferris, Exnicios & Co.

and

year

lieutenant

Corps,

the decline in
did

almost

O.

Marshall

real estate values the last time
not

of
at

Avenue, N. W.
a

We think not,

market collapse?;

office

HON.

'

Co., members New
Exchange, announce

opening;
C.

D.

&

Stock

York

the declines of the stock

Tuesday of this week, when we saw

Relationships

And the Food Markets

Under M. Exnicios
•1J>
s

Thursday, February 21, 1946

SEE INSIDE BACK COVER

New York 7, N. Y.
Teletype NY 1-588

/

"

Council

Meeting of N. S. T. A. Entertained

|By Security Traders^of St. Louis
>
..

Council Completes Meetings in

*

Merrill

Slb?rrbe5g' Merrill Lynch/ Pierce, tenner & Beane;
?'
^aui^' Bernheimer Co.; Bates Hufaker,
Lynch, Pierce, Fenner &

<

<

Beane; A.rthurI, Webster**
33/ W. Price & Co.; Ben B. Schifnian, Kansas City-Star.

y

•

■

/

,

.

.

.

,

.

■.

^

v

•»

"

Kansas City & St. Louis

Henry Arnold and Wm. Perry Brown.
,
*
I

h

■

"

Harry Beecroft. Beecroft, Cole & Co.. Topeka; Hoyt Purcell, Martin-Holloway-Pur'cell; Mark A. Lucas, Lucas Farrell
&Vo-

^

>

r

I

-

,

1

r

'|:fH I >\:

||#|g

B. F.

Piercy, Stern Brothers & Co.; Frank North, Barret', Fitch & Co.; Don SeltTopeka, Kans.; Loren McCoy, Cohimerce Trust Cd .; A1 SaWyeiy

sam, Seltsam & Co.,

I <>

* "'|

„

Harold B% Smith, Collin, Norton & Co., New York; Wm. C. Kegley, Rogers &
Tracy, Chicago; Henry Arnold, Clair S. Hall 8$ Co., Cleveland; William A. Ander¬
son, Hickey & Co., Chicago; T. Geoffrey Horsfield, Wm. J. Mericka & Co., Ne,w York.

vx, '

»»><\.

...

-

j

Paul I. Moreland, Moreland & Co., Detroit; Paul Yarrow/Chicago; Clair Hall,

;Clair S. Hall & Co., Cleveland; Arthur I. Webster.




'f:'v

:

Wm.

Perry BroWn, Newman,

Brown

& Co., New Orleans; Harold Smith; Ed.
H. Blizzard; R. Victor Mosely, Stroud

Welch Sincere & Co., Chicago; Major Herbert
ch;
& Co., Philadelphia; Arthur I. Webster.

: THE COMMERCIAL & FINANCIAL CHRONICLE

968

Franklin

ysis

Trading Markets

,

t

send interested parties the

"Frisco" Arbitrage

& Co.

C. L. Schmidt
Established

dum—Stern & Co., 120

to

of

Tele. CG 271

Broadway,

News—brochure
review contain¬

the

comment

and

Geared

CHICAGO 3
Tel. Randolph 6960

memoran¬

5, N. Y.

New York

1922

Salle Street

120 South La

—

ing brief analyses of

Philip Carey

Manufacturing Co.; Sargent & Co.;

Company; Lawrence
Portland Cement Co.; The Parker
The

CARTER H.C0RBREY& CO.
*

National Association
o/ Securities Dealers
;

U Umber,

^

r

Haytian
Corporation of
America; Latrobe Electric Steel
Corp.;

Ray-O-Vac Company; Fort
Bridge
Works
and Welch

Co.;

•:"

%v;;-For

,

Pitt

UNDERWRITERS

Grape Juice Co.—Strauss Bros.,

j 650 S. Spring St.

CG 99

State 6502

MIcM^ntU81

of

—Breakdown

Bonds,

Government

Casting

Co.;

income—Laird, Bissell &
York

Meeds, 120 Broadway, New
5, N. Y.

.

Company

&

York

Consolidated, San Mauricio, BenTh©

Mindanao

' and

Balatoc,

guet,

Chicago Corp.

Mother Lode—F. Bleibtreu &

The-Muter-Co.

Bulletin of

.

1

^

ST., CHICAGO 4

SO. LA SALLE

231

—critical discussion of interest to

Internal
payment
securities — Brawley,
Cathers and Co., 25 King Street,
West, Toronto, Ont., Canada.
,
Canadian

Randolph 5686—CG 972

>

New York Office

1 Wall St.

»

Post War
should

State

Com.

benefit from the automo¬

Street, Boston 9, Mass.
y

f- m\.

Pfd.

;

fi /'";<> i;'«4
,

—A

:

u v,

Seamans

revised and re¬

edition

new

news

items

1916

Established

Members Principal Stock Exchanges
Chicago Board of Trade

10 So. La Salle

St., Chicago 3

Tel. Franklin 8622

Teletype CG 405

111.

Indianapolis, Ind.
Rockford,
Cleveland, Ohio

into full account

present market position right
up to the time of going to press—
Seamans-Blake, Inc., Dept. C-l,

C-2, 841 West Washington Blvd.,
Chicago 7, 111.—$3.00 with privilege of returning for refund with¬
in fifteen days.

We recommend

Drive

Auto Company

Street, Chicago 4, 111.
■

Also available is

orandum

a

high.
tory.

Corporation

share

on

Dayton

The Muter Co.

Iron

Malleable

Public

.

is

circular

a

t»;

National

Bank

Trust

&

Co., 61 Broad¬

New York 6, N. Y.

Also for dealers only is an anal¬
ysis of National Radiator Co.

Robbins &

Industries

Myers, Inc.—revised

bulletin—Doyle, O'Connor & Co.,
Inc.y 135 South La Salle Btrect,
Chicago 3, 111.

F.

Beaver

Mining

Company-

Rockwood & Co.—circular—Hoit

New York

Street,

Rose &

4,

Also available is

search comment

leaflet of

a

several situa¬

on

Schenley Distillers Corporation
of articles they have
been running in the Chronicle—
write to Mark Merit, in care of
Schenley Distillers Corporation,
—Brochure

Jonas & Naumburg

Corporation
memorandum—Syle
and

—late

.

re¬

•::y..y-''--':.

; .y

Troster, 74 Trinity Place,
1

New York 6, N. Y.

N. Y/

19 Rector Street, New
6, N. Y.

350

Roi

y

Company,

Fifth

N. Y.

Avenue, New York

'

;

.

Net
on

a

available are late memoranda on:

Great

American

-

Industries;

Douglas
Shoe; General Tin; Upson Co.;
New Jersey Worsted Mills,
Alabama

Mills,

Le

Company

stock

common

as

Study

—

sound

a

of

specu¬

purchase — First
Colony
Corporation, 70 Pine Street, New
York 5, N. Y.
available

Inc.;

Corru¬

York

Tool

&

Engineering

memorandum

—

B.

—

Lichtenstein & Co., 99 Wall
New York 5, N. Y.

Soya Corporation of America—

analysisr-Peter Morgan & Co., 31
Nassau Street, New York -5, N. Y,

Lehigh Yalley Railroad—Circu¬
Sports Products, Inc.

lar—McLaughlin, Reuss & Co., 1
Wall Street, ^ew York 5, N. Y.

randum

—

' Memo¬
&; Co., 209

Cruttenden

South La Salle Street, Chicago* 4,
111.
■
' -

Corp—Circular—

Lipe-Rollway

,

Also

Co., Inc., 55

Herrick, Waddell &

available

is

report on

a

Koehring Co.

Liberty Street, New York 5, N. Y,

'

T'
N

t

Maryland ^Casualty Co. — An¬
alysis
of interesting
situation —

Sills, Minton & Co., Inc., 209 South
La Salle Street, Chicago 4, 111.

v

-

.

***

s

'

'

O
; -

/'•' "
'

'.V

:

i

«

~

y Sunshine

v

' !

.11

*»

,

}

"vy.

III I ««'

v

\

(

1J

Memorandum

Dearborn 1501

and

dealers—W, T. Bonn & Co., 129

analysis

C. II. Dutton—detailed

—Moreland

&

Penobscot
Building, Detroit 26, Mich.
Co.,

Electromaster

Inc.

Recent

—

report— Mercier,
McDowell
&
Dolphyn, Buhl Building, Detroit

analysis—Faroll

Co., 208
Chicago 4,

available

report
Sheller Manufacturing Corp.
a

on

Scranton

&

-; y

■

...

Also available is an
Standard Silica Corp.

analysis of

Midland

and

— detailed
studycircular M-3—Fred W.

write for

Brook Water

Spring

Co.—Analysis—Ira Haupt. & Co.,
Ill Broadway, New York.City.

Textiles, Inc.
Utilities

Midland

Realization

26, Mich.
Also

cent

South La Salle Street,
Illinois, y
;

—

Memorandum, —

Philadelphia 2,. Pa. Also available
are

memoranda

Redd

on

Fairman & Co., 208 South La Salle

Street, Chicago 4, 111.

Pump

and Osgood Co.
,.

Miller Manufacturing

Upson Company

Co.^-An-

alysis of current situation and
prospects for 1946—Comstock &
Co., 231 South La Salle Street,
Chicago 4, 111.

^Motorola—descriptive circular—

to $80,351,504—an all time

Seligman, Luketkin
& Co., 41
Broad Street, New York 4, N. Y.

"

-

f

"

,

$7.63

was

\

\

per

New

—

Descriptive

Lubetklri: &

circular—Seligman,

Co., 41. Broad Street, New. York A,
New York,

:

"

•

:

•"

«

•

Analysis Available

ion Park, Shatterproof Glass,
man

INCORPORATED

'

<

tV ell-

Motorola..

circular

—

Dayton

Yicana

Co.—Analysis—

Sugar

&

Zippin

Company,

South .La Salle, Street,

111.

209 SO. LA SALLE ST., CHICAGO 4, ILL.
Teletype CG 864

1421

.

Oregon Portland
letin

_

-

on

Lerner

&

,

5

.. ■

Cement—Bul¬

developments

recent

10

Co.,

Post

Square, Boston 9 Mass.

—

Office

1

•

!

'

Virginia Pulp &

West

study

of

v'r

Paper—

outlook—Goodbody.

'"

-

Midland Utilities

DEEP ROCK OIL CORP. Common

Midland Realization

,

in

all

NORTHERN STATES POWER CO. 6 & 7 Pfds.

Write For

208

M-3—>

study of Midland

Utilities

H. M.

Telephone

Randolph 4068

Direct Private Wire to New
Bell

System

York

CG 537

nHBsaaaammMaHaM-wmwM




Byllesby and Company

CfilTTM & CO.
Members

New

York,

Incorporated

SOUTH LA SALLE ST.
4, ILLINOIS

135 So. La

CHICAGO
***

complete brokerage and statistical service
securities - listed on the Chicago Stock
Exchange. We are prepared to submit firm
bids for our own account for blocks of
many of these issues.

We offer

CHICAGO SO. SHORE & SO. BEND RR. Com.

v

Salle Street, Chicago 3

Telephone State 8711

New York

Philadelphia

los angeles

Teletype CG 273
Pittsburgh"

Minneapolis

california
DIRECT

Chicago and Los Angeles

Stock Exchanges

209 SOUTH LA SALLE STREET

Lincoln, neb.

CHICAGO 4, ILLINOIS

omaiia, Neb.

7

PRIVATE

WIRES

TO

208

&

Co., 115 Broadway, New York : 6,
N. Y.

v

"

Inc.,

Chicago 4,

CHICAGO STOCK EXCHANGE

-We Maintain Active Markets In—

Members

A

-

Kendall Co.;

Engineering Co.;

Haigney & Co., 75 Federal Street,

Members Chicago Stock Exchange

I Fred. W. Fairman Co. L

.

•

Also detailed circulars on Fash¬

England Lime Company-

Descriptive

"

'

^

:

Buckley Bros., 1529 Walnut Street,

MMMBMSINCE 1908HHHBHH j

Stock Exchange
Board of Trade

-I:

Inc.4-

brokers

for

:

/l

"J

Consolidated

;

Broadway, New York 5, N. Y, y;

study of the 1945 annual report of

consolidated basis.

Telephone Dearborn

Chicago

S.

Street,

of

studies

are

Babcock,

&

Snyder

Company

lative

Merchants Distilling Corp.—re¬

stockholders' gain in 1945

common

,

Chicago

1,

v;.'V

y>-

.

Boston 10, Mass.

'

on

1

,

C. E. Unterberg &
mem¬

Rothchild & Co.,

American

t

Homestake

Co.—

SILLS, MINTON & COMPANY

CHICAGO 4

Hoit,

—

Net premium writings of $33,433,295 highest in his¬

.

Comstock & Co.

on

Co.—Analysis, for dealers only—

Reilly & Co.,
Inc., 40 ' Exchange i Place,. New
York 5, N. Y,

"

recent mem¬

a

Study of outlook and speculative
possibilities for appreciation for
this company—Ward & Co., 120
Broadway, New York 5, N. Y. Also

Total assets increased $6,938,666

Teletype CG 955

r e a

Y.

Rockwood & Co.

gating.

MARYLAND CASUALTY CO.

Howard Aircraft

So. La Salle St.

G

Also

Federal Water & Gas Corpora¬
Standard—report on in¬
teresting outlook from domestic tion—Memorandum—J. G. White
and foreign markets for leading & Company, Inc., 37 Wall Street,
, 1
>
designer
and
manufacturer
of New York 5, N. Y. .

Corporation gf|||

231

New York 6, N.
Also available

Cas¬

Aetna

"

Four Wheel

—

Street, New York 5, N. Y.

—Circular—J.

Bishop

Coke

Central Coat A

52 Wall

and

Gas Utilities

Chicago

the

Paul H.Davis &Go,

-

r.

Co.,

orandum—L. H.

Southern Airlines-

interesting

Consolidated

This Is the Road to Stock Mar¬
ket Success—By George

written to take

Request.

oprospectus Available on

which

company

•

*Well«-Gardner & Co., Com.

*Woodall Industries, Inc.,

of

bile, building, and frozen food in¬
dustries—Raymond
&
Co*,
148

Central Steel & Wire, Com.
Globe Steel Tube* Co.,

Beneficiary—Descrip¬

analysis

tive

Analysis

way,

Corp.—Circulars-^Hicks & Price, 231 South La Salle

in

—

Getchell Mine, Inc.—Brief

Co.,
The

investors

Box

^:y;-.yy^;y:v:ycy-'-y'

-

York

the company—Scherck,
Richter
Company,
Landreth
Building, St. Louis 2, Mo.,

•

Members Principal Stock Exchanges
Chicago Board of Trade

11

affecting

Position of the Canadian Hollar

MICKS (r PRICE

Hardy,

&

Broadway, New York 4, N. Y.

>

,

Co.

tions.

Bost, Inc.—detailed circular on

Inc., 79 Wall Street, New York 5,

Circular on Request

,

ColNew
<

situation—Hardy

N. Y.
f

Company-

5, N. Y.

Chicago &

Utilities Corp.

f*

Rose & Troster, 74 Trinity. Place,

current analysis—H. Hentz & Co.,

*

Pine Street,

70

i

.

interesting y possibilities

120 South La Salle
Street, Chicago 3; 111. Also avail¬
able is a study of Mississippi Glass

Steel
National

and

Woolen

Co.,

&

well

60
American

■

..

Philippine Gold Shares—Analy¬
sis of United Paracale, Masbate

Consolidated Gas

E. & G.

on

& Co.,
Street, Chi¬

Salle

Michigan

Terminals Corp.

maturity

by

categories; breakdown of sources
of gross

Iron

detailed analysis—Penington,

Banks
holdings, U. S.

Nineteen NeW York City

LOS ANGELES 14

135 La Salle St.

Salle
Also avail¬

recent circular

a

Brooke

ket

DISTRIBUTION
CHICAGO 3

able is

Railway Supply Co.—

General

American Service Co.—Circular

—Adams & Co., 231 South La

Street, Chicago 4, 111.

La

cago, 3, 111.

&

y:.yyyyy;^;

Mich.

32

Broadway, New York 4, N. Y.

MARKET

SECONDARY

Sugar

Alegre

Punta

Co.;

niture

Pacific Coast

—

Corp.;
Armstrong
Rubber Co.;
Ohio Leather Co.; American Fur¬

Socket-

Rapids National
Grand Rapids 2.

Tornga, Grand
Bank Building,

Mulliken

Appliance Co.; Pettibone

?

Wholesale Distributors
Middle West

Upson

South

>y.

■,

Franklin

Larson

Young,

135

Analysis—W, J. Banigan & Co., 50
Broadway, New York 4, N. Y.

industries
equipment —
Luckhurst
&
Co., 40 Exchange
Place, New York 5, N.
American Forging and

Pacific American Investors, Inc.

•.

;

Circular—De

-

—Memorandum—Kitchen

post-war

■

will be pleased
following literature:

heavy

Coal—Anal¬

and

Panama Coca Cola—Circular

It is understood that the firms mentioned
to

Y.

N.

Recommendations and Literature

Kropp Forge

i

■

County

.

condition

prospects—F. H.: Koller & Co.
Inc., Ill Broadway, New York 6

Dealer-Broker Investment

General Box

of

^Thursday, February 21;. 1946

EAST

AND

WEST

COASTS

.

Volume

163

Number 4466

THE COMMERCIAL & FINANCIAL CHRONICLE

969

;

t

Waller W. Crawford to
Be Bells Partner

Circuit Court oi Appeals
SEC Directed

CHICAGO, ILL.—As of Marc
1, Walter W. Crawford will be ad*-

Explain Why It Should Not Be
Compelled to Enter an Order in Proceedings Before
Dealing With NASD By-Law Amendments Which

*

;

1

to

mitted

to
partnership in Betts,
Borland, & Co^ 111 South La Sallp

Street, members of the New York
and
THE -OXFORD CASE.h:-<7 7;
The SEC Release No. 3769
in the Oxford

Require Registration of Salesmen, Traders, Etc.
NEW YORK, Feb. 15—Judge Jerome N. Frank, formerly Chair-

:

;,

.

Company, Incorporated,

late

revocation, has naturally caused considerable concern in
the minds
members, of the National Security-Traders Association as to what

the Second

'®Jtect-this'-Will have

of the Securities and Exchange Commission, and now an

man

Appel¬

of

Judge attached to the United States Circuit Court of Appeals, for
Circuit, has just signed an order to show cause directed
to the Securities and Exchange Commission and based upon the ap¬
plication of some 30 security dealers throughout the nation, who are
represented by Abraham M. Metz,^
and Edward A. Kole, of New York
City. :
;--'r'7/7.7 7.'!';': ■■■■■
The petitioners seek mandamus
requiring the Commission to enter
;7 an order disposing of the proceed¬
;
CHICAGO, ILL.—John S. Loomings heretofore held at Philadelis of the Illinois Company was
.

Bond Club of

"

■;

These

proceedings
were
§ down by the SEC of its own
.

tion

in

orderto

,

elected

set
mo¬

H.

determine

Dealers

&

ness

ing

AmendmentsjT.7'7

Association
trade

U;

ered

NASD

Governors

to

Blair

by-laws to its member¬
ship, which would control- profits,
commissions, and other charges. -.

year,, in
tion; to

\;7 7.Petition is

a Renewal,
* I
77'- Application for similar; relief
was
made
by : the
petitioners
through their counsel first to the

.-"'7'

unless

*'

'

4

they

I

properly acting

It

is

based

on

as

clear distinction

a

"Principal"

7 "Old" Preferred Slocks

v,

■:

in the Oxford

'j:';
The essential
thing is to make

'*

100 %

are

as

v

...

& PACIFIC RY.

or

DENVER & RIO GRANDE
WESTERN RR;

or

ST. LOUIS-SAN FRANCISCO

RAILWAY

obtained

J

habitually maintained, the relation of the
"Principal^ would seem ito be; reasonably:clear,:; although
Sreai;eare^_ sho.uld^„b.e;..exrecised that the customer- is inteiligently
dealer

as

jjware of-your status, and is not directly

.

to act

addi- :•
t he

John

S.

Loomis

;

•.

;

,,v.

5.

as

his "Agent."

or

KITCHEN & CO.
135 South La Salle Street

indirectly instructing

you

Chicago 3, III.

1

Short Positions^-T-there would

to be

appear

no

reason

Tel. STAte 4950

why

,

George S. Chahner,: Jr.:
phort sales cannot be consummated t where conditions are as set forth
Channer Securities Co.; Julien H;
|n Paragraph* 4. -' " ' ^
■* -** <r
ColHns; James H. Howe, Farwell.
6., Profits—the question of profits, either as "Principal" or
Chapman & Co.; Richard A. Keb- |
bon, Kebbon, McCormick & Co.; "Agent'- is not a major factor in this instance. The disclosure of
George L. .Martin. Burns & Cor- commission as:,"Agent" and the justification of
prices as "Principal"

Active

,

When the SEC refused, to enter

order, a similar application was
made to the United States District

an

bett,

mons,

Court in New York.

7 Opposing such petition, the Se7 cUrities arid Exchange .Commis¬
claimed

Court:

that

the

-without

was

leave

to

from
the

petitioners

jurisdiction

the District Court and

instant,

States

one

Circuit

with

the

Court

7 vv The *

filed

United

armed

office

in

Arcade

forces : overseas.

It R.

determining factor

heard

be

addressed

Miss

by

Women

Eloise

history and background of previous business
or

there is doubt;

as

.■

-J.-.X'-Common

re-

to, the handling of some:

CHIC AG O.; III.

were

engaged in

ReQua

"'f.

»?s

Leonard

war

BONDS

Paidar,

W.

CG

106

Frank-Guenther

Law

We have prepared

November

the

York

,

Albert

staff

of

after
The

777!!©|7

10

All

NEW

has beeh, elected
a Vice-President of the
agency, it
was
announced yesterday.

a

revised bulletin

on

YORK

IK

.'v:'

'

7';

7

-

BOSTON

;

i

7-

Albert Frank

THE

Koehring Co.

MYERS, Inc.

MINNEAPOLIS

KANSAS

SECURITIES

Boston

□

OF

'*'n

—

upon

DOYLE, O'CONNOR & CO.
INCORPORATED

('■>

1

v

(
;

.

'

Paper Mills Co.,

James

Teletype:

CG 1200

"*

-

"

* <«

j.

•

'■*»

-5
rxr

*?•**?*>*'* t *'*4t»*»«4i * *




#

•»

;

Memners

Hamilton

Mfg. Co.

Manufacturing Co.

»<*

*-«•«»%* v*;. k

i

y '•»•••»

i

*> ♦.;

Chicagoi^cock Bxchhuye.

VOLLEY, DAYTON & GERNON

PHONES—Daly S392

v

Stat. 0933

nicago;
Chicago:

.........

~

-

,

I

-

i

MILWAUKEE (2), WIS.

225EAST MASON ST.

.

"a.

7

All Wisconsin Issues

Member—Chicago

•

.

Froedtert Grain & Malt. Co.

Stock

105

CHICAGO 3, ILLINOIS

Telephone.:. Dearborn- 6161 Vi

Gisholt Machine

Co,

I

:

135 SOTTTH LA SAIJ.K STREET
V

Northern

Wisconsin Power and Light Co.
Compo Shoe Mach. Co.

★

Tool

Central Paper Co.,' Com.

7777>7

request'

National

Cons. Water Pwr. and Paper Co.

Copies available

Macfadden Publications

V

Nekoosa-Edwards Paper Co.

New York 6, N. Y.

Chicago Philadelphia San Francisco

CITY;77<77.

] Standard Silica Co.

'

Guenther Law

-

Incorporated

,

Telephone COrtla'ndt 7-5060

,,vi;

'

v-

MILWAUKEE

"

CONTINUOUS INTEREST IN:

:

-

BOBBINS &

•••>

,!

OMAHA

■

Its 7Branches

131 Cedar Street

CHICAGO

:"'7 i

New

"Times,"

-

i

Plans Prepared—Conference Invited

Incorporated

advertising

last

0101

ADVERTISING

•A.C ALLYN'nd company

be¬

who

the

on

STATE

FINANCIAL

In

with

agency

PHONE

361:

f

7

ILLINOIS

Utility

"Municipal J

*

-

Calkins,

years

STREET

SALLE

A

:———i i'7777

associated

came

'

CAGO 4,

trial

a us

Railroad

of Albert Frank Agency
7 Howard

Chicago.

r

request

iiiiiiiiiiiiiiiiipiiiiiiiiiiiiiiiiniii!^

In

Howard Calkins Is V.-P.

Interna¬

IV

on

an¬

-

mmn—i—.

Studies, Geneva, Switzerland, and did graduate work
in
foreign trade and- languages, at
Bryn Mawr and the University of

.' }/

circular

SOUTH

TELETYPE

Public

the firm.

partner,
office at

23.1

CH

Cgo.

Lawrencq

—

work; has a^ain

nounced, in. their
West Adams Street;

tional

;

L. Common

*

.

of

|

ADAMS &CO.;

become associated with

meeting

1932.V A graduate

the School

:

.

^Mich. Steel Casting Co.}

was

on leave'
of .absence from GoodbodyCo-

Bryn Mawr College, she later
in

•

Corp. I

Common and, Preferred

,.

*Recent

Wallwork, who has been

tary and Director of the Interna¬
tional
Relations' Library, - which

studied

'■

.,

^Nat'I Terminals

.

Lawn Wallwork Rejoins

YMCA, 19 South La Salle St... Chi7 cago.
Her subject was "Women
r in Russia." Miss ReQua is Secre¬

of

Common

S

in the West Rooms of the Cenlral

she founded in

Hoe & Co., Inc.

Before

Staff of Goodbody in

at its Feb..20th,luncheon

Common

*E. & G. Brooke Iron Co.

houses in Pittsburgh.

Luncheon Meeting of
La Salle Street Women
Street

and

A

connected with several investment

day of March, at the
House, Foley
Square, New York City. '

Salle

Class

I

United States Court

.4'.a,a

Trading Market*

•

,

or

iationships are all .factors to be considered in each case. If further
information is^desired or. there is doubt as to the
handling of .^ome
particular transaction, local affiliates should be consulted.w 7

the

military service, Mr. Ferney.

,

a noli cationwill

branch

a

Building,-y under
the direction of James M. Ferney,
who recently returned from the

the 4th

on

full and

..

Preferred,

as to whether a dealer is
''Agent." The method of making the sale, the
complete understanding of the customer as to your status in

information is desired,

Jenkins

of .' Appeals

for the Second Circuit.

ventory is not the sole

acting^s "Principal"

Co., Inc., of New York, has

*

9,

^American Service Co.

Jhe rules and decisions covering such matters.
Dealers' Sales Without
Inventory—the presence or lack of in-,

the "matter, and the

ton &

U

in accordance with

7.

PITTSBURGH, PA.—G. A. Sax-

opened

given
petition

were

withdraw 7 their

are

|

District

Circuit Court of Appeals, where-

the

Sim¬

Opens
Pittsburgh Branch

any court had jurisdic¬
tion it would be the United States

upon

Inc.; and Richard W.
Lee Higginson Corp.

G. A. Saxfon

7 and that if

r

Tele. CG 573

J

pfficers:

SEC.

sion

.

CHICAGO, ROCK ISLAND

to whether

"Agent." This is nothing
law, the Securities Act and the Com-

common

of ,7;• \

■;

-

one

;

Fv',

v1

*1

MARKETS

hv,''-'4.4;5Where- positions- are

-

iurer;

tors ' for

i

mine whether their salesmen'
actually -"offered": securities
"order" to buy'or sell. ^
•/ /
;
;

1

I & Co.fTreasDirec-

sub-i

mit future

^

securities,

understanding with the customer, This is not a matter to be
determined by'your I discretion.: All. firms are responsible to deter¬

&

William

ernpowr

;

your

' Co.;
Secretary; Lee SH. Ostrander,-

conduct.

fc

-

3. You have no
option to act as either "Agent" or "Principal."
You must determine the nature of
the transaction from the facts and

s,; ;;EiPe- '

irich

t

dealing .in

biissionA;RuIe$77-;:^

James

e

*

v

d

McNulty;;1'

A'm

'

•<

concerns

are

new.

din-;

n a m e

-

were:

with-respect to their

-'.rv -These by-laws further,
-

2.
you

Other7 officers

_

v

Case.

meet¬

and

V'

'<•

•

!•

-

TRADING

may prove of
procedure to follow in daily

brokers, could be affected by the provisions outlined

;ner.^^-:'7';;V

the

registration ^of1 some
thirty : thousand ;salesmen, trad¬
ers,
partners, etc., of its membeLiirms, wno .thereafter would
be under the jurisdiction of the

/

•

•

Company, ;

-

transactions:;

'•

»

of

thirty-fifth

\ ' By these amendments the NASD
sought

business

Collins

annual

,7;'7;777j7777 77
Purport of

following is, therefore, submitted in the
hope that it
help and guidance in determining the

Bond

the group's

at

in the public inter-

were

the

of

•

CHICAGO, ILL.—The Chicago
Stock Exchange will ^ot be open
for business Friday, Feb. 22, 1946
(Washington's birthday) and Sat¬
urday, Feb.. 23, 1946.
77

they are not based on legal advice, and
final analysis each firm must
be responsible for its own busi¬
practices and procedures. It is
appreciated, however, that a great'
majority of small dealers,
particularly those who do not at all times
maintain a position or
inventory of securities, are sorely in need of
information and clarification of
this highly involved subject.
The
in

Chicago, succeeding Julien

Collins,

Julien

whether certain proposed amend¬
ments to the by-laws of the Na¬
tional
Association
of
Securities

7 est.

President

Club of

Feb. 22 and Feb. 23

.liP1?.86 are only. 0Pinidns;
the

•

Chicago

Elects New Officers

t phia.

Chicago Exchange Closing!

their methods of conducting business.- The

on

NSTA, at a meeting of its Officers and Executive
Committee held in
C hicago on Jan. 30, came "to certain
conclusions as a result of this
meeting and previous study, consultation and
discussions.

♦

;

Chicago Stock Exchanges. Ifi
in Ah*

the past he was a partner
fred L. Baker & Co.

,r.;

Jiair

.

.

.

,

J

,

.

s

cw mm

nrt

CG

262

J'

^^

a

---

,

m

*

a

-m'»

*.

«*

*"

»

Central

-

*

Fond du Lac

-

VtadiFon:

t'

Sh

Exchange

Chicago 3, 111.
0780

Officer in Wisconsin.

.-M-t..
b

r».r« wr %im «-•.«

'

Eau Claire

i w vj
Teletype MI. 488.

-

-Vt'iTifm < r» > r-t t fir-* tt

So; La Salle St.,

*

*. -fc

S

La Crosse

Wancau

:

-

t

-

a -1

*,*■*

*<i

-

'

a, ».-'*■-4.:,-*.

|

THE COMMERCIAL & FINANCIAL CHRONICLER

970

Thursday, February 21, 194.6.

Panhandle Eastern Pipeline
and, after the; year: 1951/ to
supply substantially.1 all of the
natural gas requirements ; of [ the
company in this state is one of the
by

Mulligan Brevities

,•/ The Russell Manufacturing Company showed total operating in-'
jq0me/6f:i'$878,641;''idr: the fiscal year ended Nov. 30, 1945, compared'
features of the book. Hearings on with $718,625 for the
preceding; fiscal year. Net. income of $365,065
the/application of Michigan-Wis¬ {'compared with, $263,950, earned; during /the previous 12 months.

decided to sell 20.0,000 shares of addi¬
public] through underwriters to provide
funds for plant' expansion and; wprking capital.
Proceeds, are ex¬
pected to amount to about $750,000.;
The company also authorized the issuance of one additional share
of common for each of the 200,000 shares nowj outstanding, in ac¬
Electromaster, Inc., has

tional

common

stock to the

,

with

cordance

the

for

two

V'

./' *

*

The

and

Co.

&

Moore

McDonald,

bought two

issues of Ohio school district

new

Jackson

i

Columbus is due seri¬

near

The

fered with

yields, from JO.50.%

1.20% ; while the Madison

;

a

located near Dayton, is due- seri-'
ally from 1947-69 and is being of¬

Both

0.50%,

from

yield

to

are.

to

exempt from all

present federal taxes.'

year ago-

William G.

.volume

Teletype

-

.

- -

of its products

The 20-page booklet is

printed

Charles A. Parcells & Co.
Members Detroit Stock

.

.

the company

the

idated's

.

ing

and

new

construction

Manufacturing Corp.
request

Cadillac 5752

Tele. DE 507

;

on

Request.

GRAND RAPIDS, MICH.
Phone 98261

.

$1.31

or

a

share,, com-

I share for the

or

61c a

corresponding per

pet Company showed a net
profit of $890,677- after ? est!mated^ taxes/of $660,000,
This.
^
compares with a net of $1,025,750 in 1944/ Indicated earnings
i on the common are $2.37 com:

,

Cooley & Co. Will

while unearned premiums of $12,

Admit John Moran

value.

Detroit

investment

men

engaged in

1945,

-

989,301 compared with $11,904,268.
I Liquidating value of $112,165 per
share showed
a

share

an

the

over

1944

£

«

-

increase of $10.40

year-end
-

>.

All of the affiliated companies
likewise showed increases.
;

work."

HARTFORD/tONN.—Cooley &
Coriipany, 100 Pearl Street, mem¬
bers of the New York Stock Ex¬

change, will admit John F. Moran.
to partnership on Feb. 28.
Mr.

Detroit Clearing Group
Elects New Officers

Vv According /to

a report filed?;
SEC, United Aircraft
/Corporation had sales and opx

facturers

National

Bank

Dec. 31, 1945.

sociation,
succeeding
T. "Allen
Smith, Vice-President of the Com¬

: the
.

At the year-end,
had a backlog of
contracts aggregating $83,-/

company

war

482,178.

/

'

<

cashier.
;

„

m

'
(

1

iu—

Vice-President, and

Joseph M. Dodge, President of the
Detroit Bank, was named Second

Hearing Is Postponed
The hearing of charges that Van
Alstyne, Noel & Co., investment'
l

firm, had violated the Securities,;

^.ct/oft193;3;was?postponed until
change

Commission; announced.

The hearing, originally
for

scheduled

February 14th, wks postponed;

which

at the request of

the

firm.

compares with $15.50 for
preceding year. ,

attorneys for the

;
The SEC charged that Van Als¬
,»•
The
Southern New' England
tyne,. Noel & Co. sold shares, of ]
Calhoun,
Assistant Telephone Company reported net
Cashier of the Manufacturers, was income of $2,690,927 or $6.70 a Higgins, Inc. before the registra¬
elected Secretary-Treasurer,
share for; the year 1945 against tion statement became effective/ !

John

C.

Tifft Brothers

Common Stock

Fifty-fifth Year of Dealing in

Members New York and Boston Stock

:

Exchanges

Associate Members New York Curb
:
." ■' Exchange-..;
.

^

Primary Markets in

CONNECTICUT SECURITIES
;

Primary

Markets—Statistical Information

/

Hartford and

Moreland & Co.

Connecticut Securities

Exchange

Hartford 7-3191

Building

DETROIT 26, MICH.
Teletype
Battle

Creek

Bay City

DE

y

Vice-President,

Inquiries Invited

1051 Penobscot

—"

,

T.

First

associated with

March 1st the Securities and Ex¬

:

?
For the year ended Dec. 31,
:•
1
1945, the First National Bank Sf
Fisher, Jr., President of Trust Company of New Haven had
National Bank of Detroit, was
net income equal to $10.61 a share

C.

as

been

firm - for a; number of years

the

:erating revenues totalling $73,235,054 for the quarter ended

De-

of

with

has

Moran
the

Kuhlman Elec. Co.

Welding

Stock

:

Building, !: As

are

I

Detroit

^

1; Surplus of $42,389,665 compared
with $4,585,763 as of Dec. 31,1944

Darling

National

Member

:

pared with $2.81 per share for

| riod of 1944.,

Baker

i

>

the end of 1944.

named

GR 84

Request

MICH.
Co./; Buhl

monwealth Bank.

Industrial Brownhoist

on

;

| pared with $1,187,602

troit, has been elected President
of the Detroit Clearing House As¬

be Young, Larson 8& Iornga

Analysis

;

ago.

,

1

& Socket Co.

C. H. Button*

*

that /the

DETROIT, MICH. — George R.
Tait, Vice-President of the Manu-

TRADING MARKETS

Elec.

indicates

In answer to the congratulatory
of Exchange President

war

An outline of the proposed new

Circular

L. A.

1 a rje d ;
share. :

ec

^

.

services and four

:

r

'

per

.

Gas Co. with its requirements for

Bldg., Detroit 26

,

especially proud as we
enter our second quarter century
of membership, of the fact that we
started the year with the record
of adding four from the armed

gas pro¬

Members Detroit Stock Exchange

Buhl

&

known

We

mains,

American Forging

„

,

said

natural gas in excess of deliveries

& Dolphyn
:

the

feet additional to the plant
1 at Hartford.;

Parcells, Winslow Howarth, vice president of the firm

was

Mercier, McDowell

...

the year ended Dec. 31,
Net sales for 1945 were $34,679,the Phoenix (Fire) Insur¬ 455^sbme: J2% iess;than the pre¬
ance Company showed total ad¬
ceding/, yea r.
Civilian
sales
mitted assets oL$81,187,140 which totalled
$13,494,411 against $11,- /
represented an increase of $7,228,r 824,202 in 1944, while war sales
//
921 over the preceding year-end. declined to
$21,185,044 from $27^- "
Special
reserves
of $14,000,000
593,45SL//were
$5,000,000 greater than at

r

able to extend its facilities by

.

'

the year: 1945t the Se-r *
curity Insurance Company of New.. ;////;
Haven and wholly owned subsidiv
./
aries reported net premiums writ-;.
./ /
ten of $10,860,830: compared with ;/ ; //;
$9-,494,740- in 1944.:,
;// //{//I;/;/
i; Total admitted assets of the.Sek.
purity' -Insurance
Company in- . /',;
creased from $17,739,392; tQ> $19,-553,562 as of Dec/31, 1945. Using
market values for securities/, these^ v
figures would be increased ; by;
$162,019 and $232,087 respectively. ] „/
Liquidating value - per share; at
the end of/1945 was $51.50 com[-<:/:/;
pared/to; $46.58 at the • endv of the;;.;
•.
,

Charles

Michigan-Wisconsin Pipe Line Co.
to supply Michigan Consolidated

on

d

«

*.

message

Mt.

duction, underground storage and
transmission plant costing $1,967,600.
/'
;

furnished

per

for

a con¬
building>of 50.000;

square

house, was honored ;by the Detroit
Stock Exchange for having com¬
pleted
years of membership? in
the exchange,
..
...

•

'/■/x'/'; //>/:

_.;/

services, meters, natural

Re-ports

$1.25

DETROIT,

well

Big, Rapids/

Greenville

construction of distribution

"

to

Simonds

by war restrictions dur¬
the past year, the company

was

Shelter

SEC

to the

-

Veeder-Root, Inc. has let

|

tract

; common

;

limited

Electromaster, Inc.

report

*

.

Quarter of Century

ap-

Although the Michigan Consol-

DE 206

recent

Company, of - Groton,> Connecti/ cut, had total- sales: of $5,830,-

'

Teletype

A

year

offices in Detroit,

Ludington,

Belding,

639 Penobscot Building

Telephone
Randolph 5625

}

75

Lansing
Muskegon




CHAS. W. SCRANTON

&

CO.

WHITE, NOBLE & CO.
New York:

*Members Detroit Stock Exchange

GRAND

RAPIDS

BOwling Green 9-2211

2

Teletype GR 184

^'/•/NE^Haven/V:////
New London

MICH. TRUST BLDG.
Phone 94336

f

■

.

-"•'

!/ During

Detroit'?■■■ .:572.

: of "

.

.•.

./*
/

/ McKesson : &
.Rpbbins, | Inc.,
Whose chief drug* manufacturing
junif is located in .Fairfield, showed
- regained
much of
the biisiness it lost due to/the end het;profif Of $4,050,485 for the six: 'preceding ;ye8r/;'/;/;;:;<:A/;•-'v.
hionthsended Dee/31,1945,; which,
/ Corresponding;/increasesl /were^////;//;
of thewar. In December/ 1944y
when .both wars were in progress/ compared; with $2,258,892 ;fpi: the reported - by r its subsidiarres—the//
Jcorfesponding period in -1944, On; East &* West Insurance Cbmpany,^.
Edison had 718,865 residence and
a/per share • basis,;earnings^were: and the Connecticut / Indemnity^
farm customers. Michigan.' stock-,
$2.22 and $1.16, respectively.; ; // Company.'///
holders totalling 14,615 now, own
11Npt j sales for the- six / months
more than 39% of the company's
ended Dec.: 31/ 1945,- were $164,I / According to/a preliminary .< / - /
outstanding 6,361,300 shares of
253,812/ compared [to -$152,014,144r i; report for the year ended Dec* s' *";
stock.
;
^
for; the corresponding period a
131, 1945/ Bigelow-Sanford Car- ^ / >;

of miles of main from

Pleasant,

DETROIT 26, MICH.

preceding

$45.23 for. the
•;-/ -

""

;

-

.

_

1945. was

report
company has

j. 500 miles to 4,500 miles. On the
J hack cover appear pictures of

kegon,

■

■.

of customers

Grand Rapids, Ann Arbor, Mus-

Michigan Markets

against
year/'

1 $2,348,060

I number

•

Exchange /

rhonth pf December 1945 was ,the?

Exch. Member for

number

i

highest monthly total on record-—;
$292,117.
'
j~ ■ ■,''

; the growth, of the company for
; the past 40 years, during which
the

: pr; $6.31 / a share
Total revenue of $32,932,263

Indicated book value at. the end

[
Consolidated net profit for the]
1 quarter ended Dec/31,1945, was

increased from 100,000 to
proximately 600,000, and

1944.

of the 1945. fiscal year was $48.12,

Baker, Simonds Detroit

time

,

:

i tiohs, including charts showing

;

*

-

,

increase of $1,629,- :

an

/ The

in color and carries 60 illustra-

-Phone •
Cherry 6700;

1

revenues

share. • Dividends
annual • report,; re¬
publication Jan. 31, not /amounted to $1.20

steel castings to the use of
in the home, which the report
says "is the heart of our business."

r

Established 1919

$

Year.; Net .income. for

'

! ///

*

equal

gas

/ "

DE 167

*

His

!! T

DETROIT 26, MICH.

';

-

Company re¬ ! shows that for the quarter ended:
hand exceeding { Dec. 31* 1945/ the: Electric Boat

635, ;or: 1.9% over thje previous

>

income state¬

and

Exchange T

812 BUHL BUILDING

;■

117,152,

from the gas-fired equipment used
in the manufacture of potato chips

Members New York Stock

$3,566,369..

Gross

thing more about the character of
the: company ' than/ is shown in

uses

:;t '

the company®a refqnd will $2,525,776

Edison Co. in 194$ totalled $85,-

stockholders should contain some¬

904,987, but it contains a display
pictures of the company's op¬
erating facilities and photographs

Wm.C.Roney&Co.

share.; Net sales for 1945

a

.

corporation executives who be¬
an annual* report' to- the

of the varied

$383,778,

ported Orders on
$13,500,000 as of Jan. 28, 1946. /

lieve that

of"

UNLISTEDS.

of

taxes

In the preceding year
earnings were $135,439 or 60

cents

;

only reveals net income for the
year ended Dec. 31, 1945, of $2,-

MICHIGAN

of

standing.

Woolfoik, Chairman

sheets and

Corp.,

Federal

net

Michigan Consolidated Gas
Co., has joined the growing ranks

leased for

Any

Divco

were

balance

eminent contracts,
does not expect that
be -required. // •'/ *:.■
j The balance-sheet

-

equal to $1.79 per share on 225,000 shares, of common stock out¬

.

ments.-

Call Us On

for

of"the
of

are

*

„

[Earnings on. the common stock., were $4.52 and $3.27,- respectively*
[While, the income, account for 1945 is subject to renegotiation of gov-

•

compares

to

District,

1946

with 840,510 in Decemher and .'500,194 in January

necessity,

*

,

Detroit,
as of Nov. 30,
compared; with n $30,435,963 the
Mich, for the year ended Oct; 31,
1945; showed net workfng capital. preceding
year. .. Long
distance /
1945 reported net earnings after of
$3,082,035 compared to $2,/. and .toll calls .increased 14%. Net;/
all
charges, including provision 355,069 on NOV.-30, .1944. h I
available for dividends for the/ ,/
;

month of Janu-

January,

and

progress'.•./:///:.':'v,
*

The

traded.

were

in.

r

last

In 1936, the

certificate of public

a

convenience
now

Exchange

Stock

bonds:

ally from 1947-71 ap-d is beipg of¬

1.25 %.

Detroit

trading

bounty,
and $275,000
Madison
Township
local,
Montgomery
f/ounty. The Jackson district, lo¬

fered

mission for

$250,000 ] ary: established an alltime high
when more than 1,200,000 shares
Township locals Franklin

tax

unlimited

cated

consin to the Federal Power Com¬

,

•,

.

month reached a
; ten
year
high with
956,784
shares changing hands,
i

*

Ohio associates have

o

one

split up approved late in January.

Connecticut Brevities

Co.

Bell

System Teletype: HF 365

Waterbury

Danbury

Members N. Y. Stock Exchange

•=.!; •: ■>

{

Volume'163 .' Number 4466 'J

'Y, THE COMMERCIAL & FINANCIAL CHRONICLE

/

A

Missouri Brevities
The Ely & Walker
Dry Goods Co. for the fiscal year ended Nov.
30, 1945 shows consolidated net income of $2,939,306, equal to $6.42
per

share.

common

This

compares

before contingency
reserves,
after reserves, equal to

per

net income of $2,557,236

a

share, or $1,535,986
share, for the year 1944. The state¬
to $5.53

equal

$3.15

ment shows

with

per

suchr reserve set up
over, company reduced its stand-

out of the 1945 earnings.

ing contingency reserves by $3,691,294 as of Nov. 30, 1945, which,

stances there should

with

surplus
from

the

account

v

$6,812,665

to

Net

year.

Were

$89',396,747
$2,831,443.
vi 7

;

.

$48,000 spindles.

*

#

#

The United States Circuit Court

This compares with a net
income of $280,637 or d$ 1.45 per
Common share for the preceding

Nov.

♦

The

>.

v

shouldbe

above

allow

tion

duced

cor-

if

Pempsey,

Tegeler

was

I

(Special to The Financial

into paying propositions to the in¬

vestors.
j A large number of the citizens

D. D.

will 6 blossom

monthly,

new

record

set last year.
• * /

was

"/• *

■

of

the

monthly

practices.

It

is

Co.'s

,

audited

,

statement

for

the

income

net

of

a

$103,998, equal to

36 cents per share on 287,206 cap¬
ital shares, as against a net of

and

talled

confirmed by the District Court/

$3,515,932

against

as

$4,-

4

650,632 in 1944.

Over-the-counter Dealings in Listed Securities
Dealer Points Out Ail-Round Advantages in Listed
Stock Trading by Over-the-Counter Dealers.

have

protection

be
In the

(Continued

re-

H.

with

ment

j

(Special

ST.

to

The

Financial

LOUIS,

Admit Two Partners
MO. —Friedman,
Samish, 711 St. Charles
Street, members of the New York,
St. Louis and Chicago Stock ExST.

LOUIS,

Robert.C. Lesser to*

and

Bank

*Stromberg-Carlson Co.

/

■■

-■:4;1

/

J

Alstyne Noel Will

Edward

A.

Walsh

Feb.

Mr.

28.

will

Walsh

with the firm

for

be

has

some

«

v

'

'? C .taj; V "t/:

% v

\

^Pickering Lumber Corp.

Majestic Radio & Television
Corp.
ad-

hiitted to partnership in Van /Al¬
styne, Noel/& Co., 52 .Wall Street,
New York City, members of the
New Yprk Stock Exchange, on

handled, with

;

*Ampco Metal, Inc.

////

Admit E. A. Walsh
.

Mid-Continent Airlines

Wilcox & Gay

Jones is with Slayton & Company,

Van

•

■

.

Inc., Ill North Fourt Street.

to

Markets

Insurance Stocks

&

MO—William >J.

;

Luscombe
-

.

*

'

Airplane Corp.

:

-

Request

Statistical Information on

been

years .as

/cashier.

997)

Editor, Commercial and Financial Chronicle;

White & Company

V
The writer knows that you would be
doing your readers and the
a real service if
you would point out the possibili¬
ties of the Over-the-Counter market in listed
securities, in which the
securities business

/MARKETS

ignore

or

the

over-the-counter<$■/
: - *
listed securities
and v bookkeeping

in

market

much

Board" stocks; Almost/invariably
when we contact any dealer on

In

hang up, without
taking the trouble to even glance
at the National Quotation "sheets"
:

elbow

which

frequently/show
was

would

him

we

must

think

many

is

individual

dealers,

great

many

wouldn't

in listed securities must of

concern

sity

with the Exchange
market, it follows that net results
compete

to the customer must equal or bet¬
ter those obtainable on an
Ex¬

change, else / there would be
transaction.

Nor need such

no

Southern Union Gas

which,

like

missed
else

even

our own,

interested in

•

is

Old Ben

by

Coal, Common

Common/ J

Punta Alegre Sugar
Universal Match

we

.

Transmission

National Oats

*

small

a

-

SCHERCK, FICHTER COMPANY

*

Landreth

A. O. Van Suetendeal & Co.
•

are

Tennessee Gas &

Southwest Natural Gas

by

could have

bettered over-the-counter.

We

Southwest Gas Producers

daily see trades on the

Exchanges

*

-

and

traders

MO.

Bell System Teletype—SL 477

con¬

"missed"

being

in the security in question.
As the over-the-counter market
neces¬

being

ST. LOUIS 1,
:

Consolidated Dearborn

profit, and',- this fact

a

market

as

short, in the over-the-counter

unquestionably

very

that % there

over-the-counter

an

j-

almost

Mississippi Valley Trust Bldf.

Spinning, $5.00 Preferred and Common
Chicago, Wilmington & Franklin Coal
Chicago & Southern Air Lines
Collins Radio, Common
Kansas City Public Service, Preferred and Common

the SEC receives.

as

cerned

the Board" and

his

/

.

probably

trading of listed securities all

big board active stocks he will
immediately say, "Oh that's all on

at

/

.

_

particularly with reference to "Big

Louis Stock Exchange

Members St.

Berkshire Fine

undersigned has specialized for more than 25 years gaining customers
thereby in 29 States and Canada.
/
Even "in the trade" we have found that many firms overlook

By A. O. VAN SUETENDAEL

Bell Teletype
;'-u

SL 456

St.

Louis 2,

718

Mo.

LD. 123

^

Yonkers, N. Y.

Locust Street

Saint

Garfield 0225

-

•

<

.

Metropolitan St. Louis
COMPANY

Building
V

Louis

1, Mo.

Central -8250
L. D. 208

;

/

St. L. 499

over¬

the-counter trading be to the det¬
riment of the "member-firm", for
often that firm has
der"

and

as

to

"price"

a

"limited

TRADING MARKETS:

or¬

Mosinee

:

as

well

"time"

as

might avoid its loss by doing

dealer is
mer

of

the

to

obvious; and the custo¬

course

ferentials

saves

and

share,

SEC tax
sance

on

costs

as

odd

Federal

4'buying" tax of
per

over-the-counter

as

much

well

as

sales which

the

lot
odd

as

INVESTMENT
509

Olive

/

SECURITIES
street

lot

as

small

in

a

•

Members St. Louis,Stock




Bell

v

Strauss

Private

Bros.

New York and

Chicago

Mo.

Phone—Harrison 6432

Teletype —KC 472-3

Exchange

nui¬
extra

Shenandoah Dives Mining

1016 Baltimore Avenue, Kansas City 6,

/,.-•.

•/

brokers

'

Lea Fabrics

B11HH11MIR ©O

Baum,
St. Louis l.Mo.

6 cents

the

Pickering
Western Lt. & Tel. Co.

Lucky Tiger Gold Mining

j/;

dif¬

Bowser

:

Long-Bell Lumber Co.

the business over-the-counter. The
benefit

Paper Mills

Wire Connections To:

White

&

Company

St. Louis

'

Peltason Jenenbaum Co
LANDRETH

BUILDING

/-y

/Pledger & Company
Los Angeles

I
:•

ST. LOUIS 2, MO.
Teletype—SL 486

L D. 240

j
j

/J
„

Both have been with Friedman, /

Brokaw & Samish for some years.;

I
}

I.

.David

admit

will

changes,
Kramer

I $ :'

Chronicle)

••

Brokaw &

Co.,

M,',.—ij

;

Friedman Brokaw lo

f

'

1'

v

Co., Inc.

Financial* Chronicle)

&

•*

F.

C.

Mr. Moss is a director

Primary

(Special'to The

I:/

pre-war years

on page

the

of

was president of the invest¬
banking firm of Moss, Pratt

ously

*

Securities issues, dealers, brokers;
salesmen

affiliated

now

in

firm

Anchorage Homes, Inc., formerly was
president of Akloh
Corporation, product and research
development company, and previ¬

1.
is

the

department

partnership in the firm on March

Chronicle)

MO.—Elmer

Boatmen's Bank Building.

termining that the; registration of
great care.

In the past

Courtney-Breckenridge

Which/, they are entitled, it is
necessary that the various State
Departments and the federal regu¬
latory body governing securities
should exert every effort in de¬

pnd

search

I' ST; LOUIS, MO.—James T. Farjris has' joined the -staff of Mc-

knowl¬

creditors

the

with

Co., 25 Broad Street,
New York City, announces the ad¬
mission to general partnership, in
charge of underwriting and mar¬
keting of new issues, of David C.
Moss; the return from military
service of the firm's partner, Carel Van Heukelom, and the asso¬

t

i

Unethical salesmen to take every

have

ciation

/

&

Herrick, Waddell & Co., Inc.» 418
Locust Street.
1
*

that these people depend
largely on the salesmen for advice
and information
concerning the
investment of their earnings and
it is a very simple matter for the

vestors

407

Newhard, Cook & Co.

LOUIS,

Stuerman

investment

common

year./ Net

sales for the year to¬

with

i; STf

rolls

pay

who

country / and

knowledge

meager

Eighth Street.

Co.,

Murphy

investing in these issues will be
the people who derive their living
from
the
great
weekly, semi¬
and

Phalle

/

Chronicle)

&

he

$124,752 or 44 cents per share on advantage of them and cause them
282,406 /-shares for the/ preceding great loss. In order that these in¬

circum¬

Financial

North

not

C.

,

and

are

'

| ST. / LOUIS,
MO.-—Andrew H.
Strong has become associated with

The court observed that the
plan has been accepted by more/
than two-thirds of the secured'

//"Certainly In those

.

-

the

t i

-

&

>

o n,.

c

Company,

&

proper oppor¬

year ended Dec.? 31, 1945 shows

'

bondholders

Peet

(Special to The

| The Missouri Portland Cement edge

approximately $480,-

and

o.

h.

prote

♦

000,000 to $247,000,000.
*

of

West 10th-Street,

Meier is how with Slay ton & Co.,
Inc.
\
/■ -: /

and

p i ven

MO—Dudley

j -(Special to- The Pinanciai, Chronicle)
i KANSAS CITY, MO.—Earl

rat ions
Which/appar¬
ently have a
fcolid foundaon-,

CITY,

tunity

a

the reorganiza¬
capitalization was re¬

from

staff

po

t i

KANSAS

23

■

war

available, but it is believed that

Under

plan

a

a re

jfar liew

(Special to The Financial Chronicle)

;

I

M. McBride has been added to the

large number
pf these regis¬
trations

Preparing for broader opera¬
tions, the New York Stock Ex¬
change firm of Andre de Saint-

of

[ Missouri Personnels

£Q5. The figures for 1945

for

creditors.

that

war

Expanding Operations

Blanchard.

1,660,318. By 1943, it had reached
2,600,492 and by 1944, the total
passenger traffic reached 2,776,-

the

a

when the greatest

year of war, this figure j umped to

consideration of claipis
stockholders
and
unsecured

of

Typical of the

In 1939h only 612,000 people rode
Katy trains. In 1942, the first full

amount recommended by . the In/ terstate Commerce Commission to

That

its conclusion, numerous issues of stock

came to

!

,

increased

Recommends

Since that happy day of Aug.; 14,/1945,

Which,

*?

9,

should/ be

;

Administrator

Securities'

job MissouriKansas-Texas d RR. ;<Katy) ? did,
and is still doing is gleaned from
the following statistics;

contention was
railroad's - capitalization

the

of

as

$1,886,/)

'

i

'

principal

"

that

r

1945, totalled

30,

1944.

equity in the reorganized

an

,

1 598 compared with $1,771,645 in

its, opinion the court over¬
ruled contentions by the debtor
railroad company and two minor
complaints that stockholders and
given

j '♦

;
The net current assets

1

In*

railroad.

/

year.

lowing the railroad's petition of
bankruptcy in "May, 1933.

.

f

I.

Stock.

Francisco Ey. and numerous sub¬
sidiaries. ;;Thei ruling climaxed a
12-year, reorganization plan fol¬

creditors

State

to Aid in Exchange of Informalion Regularly Concerning Unethical /Stock Salesmen and Fraud- Y
ulent Stock Transactions.
]
;

noted

o,f Appeals jn St.; Louis, Mo., on
T^eb.. 8 affirmed a District Court
order by Federal Judge
George H.
Moore approving the
reorganiza¬
tions plan of the St.
/ Louis-San

unsecured

Prominent

// /■■//'.,/

rr

equivalent to 97 cents per share
6n
193,365
shares / of common

,

'

.

i

Curtis in all
history finally
Louis, have been
Mo. for the.fiscal year ended Nov.
submitted
t o
30, 1945 resulted in a profit of the State Ad$539,617 before provision for in¬ biinistra tors
come
and ' excess" profits
taxes, f o rv
registraAfter providing $351,341 for such jtion.It* is
taxes ? there ■ remained; $188,276,

.

';////:// /'/■z/V//*,'

Securities Commissioner of South Carolina
First Vice-President of
Nat'l Association of Securities Administrators

I

than 12 years," the

more

operations of the
Manufacturing Co. of St.

of

at
Calhoun Falls, S.
CW ior-.
merly operated by Gossett Mills.

The plant has

H0N- D- D- MURPHY

| Central Organization Be Set Up

The

The Ely company has just ac¬
quired the Calhoun Cotton Mills

,

jBy

ing for

sales

decrease

- a

fur¬

no

Andre de Saint-Phalle

to Detect

Unethical Stock Transactions

'

opinion stated.
'/ZC//'■///'.//■! *
* 'd *

$12,399,618

of the close of

as

preceding

be

More¬

!.

delay in this proceeding
which already, has been pend¬

ther

$1,043,647 balance of net in¬
after all dividends, increased

come
v

no

Clearing Home

J
'

*

/

THE COMMERCIAL & FINANCIAL

972

Oil Industry

CHRONICLE

Halsey, Stuart Wins

Outlook

Thursday, February 21, 1946

"Florida—A United Stale"

So. Pacific Bond issue

By MICHAEL PESCATELLO

f/vvv';.//;-'/'
By Leonard K. Thomson
j • :v/" • President, Florida State Chamber of Commerce [/*;. Mr. Thomson Calls Attention to the Recent Industrial Development
Inc., ///of the State, Particularly in the Processing of Florida's Own Prod¬
.

Analyst Recounts Changes in Oil Production Due to War and Calls

On 2.768% Basis

Attention to Substantial Increase in Both the Domestic and Foreign

Halsey,-

Says Middle East Oil, Because of Its Large Volume and

Output.
Low Cost,

Feb. .18

Production and Use of Gasoline and Fuel |

Oils, and Looks for Chemical By-Products to Become of Increas¬

Concludes Outlook for Industry Will

ing Importance in Industry.

Industry.

'■■/"

These

will

tion

require

readjustments
at magni-

■

tude probably '
before,
faced

the

by

ing

-

of the

will
be concentrated chiefly in Texas

the

1945

de¬

and California,

mand from
i .l i t a r y

m

s

o

r

u

e

c

,

or

proxima t

1

e

the

of

developed

plenish:

and

reserves

sive

y

in

;Vv
top rate of pro¬
This increased produc-

the

knd accrued interest;

advance

In

industry, must be undertaken.

duction.

contrast to the years prior to the

DAILY CRUDE OIL PRODUCTION—U.

1941

;/%, 2,185

:

California

631

Bbls.

j All Other

I

%

Prices

I:

on page

are

redeemable at

1041/4%

ranging/ from

:

available for
ixed charges for the year ended
Dec. 31, 1945 amounted to $18,943,234, compared with: $19,621,-

996)

Application for Higher Car Price Ceilings. Asserts
He Stated Costs of Producing Cars Would Increase 55%.,,;.

spectively.
lad

it t

m

nied

in

e e

which

he

ply

had

and

increase of

55%

in

price of

Ford

prices.
of

OPA, in his
testimony be¬
fore the

same

committee had
stated that last,

Mr,

summer

Ford had ask¬

-Henry

this

for

ed

increase. " "/
"What

this

on

.

ceiling

to

•

.

,

,

2nd

Ford,

IP/p /|;/;;/' [| /
[had to say

Mr,.; Bowles

point and the

manner

Aug.

in

classified

parts unless at least
partially fabricated."
Mr.

as

Ford

which he chose to say it," Mr. Ford
said in his telegram, "left the im-

■;

pointed out to Rep.
Spence that his attitude on pres¬
ent ptice controls, and the effect

pression that

of these controls

we

had secretly

ap¬

the Ford Com¬

on

plied for a 55 per cent increase in pany "already haVe been express/existing price ceilings.
Actually, ed publicly to the Director of War
have applied for no price relief
Mobilization and Reconversion on
on any of our cars since OPA ceil¬
Jan. 29, and again in an address in
ings were estabirshed^7;^;;'---;t;:;;;. San Francisco on Feb." 8." (See
we

And he added:
"In

of

,

making public

last

would

summer

55%

cost

our

that

estimate

motor-cars

more

make

to

during the first postwar year than
they cost in 3941, Mr. Bowles.|ailr
ed

to make clear

mates
fore

were

OPA

price regulations
more

than

had given

a

us

price ceilings

lated.""'./ •

that these esti¬

submitted to OPA be¬
had

announced
on

month

new

before

the basis
were

to

the

•

,

..

.

on

any

cars-

/

.

14,

,/

page

/.

*;:•

! "We estimated for example, in
?beaking of production costs," Mr.
Ford stated, "that our most Popu¬
lar model, which had .cost $512 to
make in

1941, would cost

der postwar

us,

ject to the lien of its first mort¬
gage.*

~

un¬

cost

somewhat by increased

duction

meantime

to

Ford
wage

approximately 100,000 producr
tion employees.)
"Our OPA price
his model is $728.
•

"We

costing

was

?

i '/Since; then < we

-

/

us

$963

want

to

get into
OPA or

with

nounced

a

new

wage-price policy.
However, I have stated publicly
my opinion that inflation is based
on
scarcity and that the way to
prevent

.

inflationary

prices

.

of

uanufactured products is to proluce goods for people to
buy with
:he money they have to

spend;

"We at Ford Motor Co.

are

ing to act in that belief..

go¬

j

"Our job at Ford Motor Co.
air¬

has been to make

and

that more and more peofafford them. We look for¬

so

can

ward

more

products at lower and lower

to

the

time

when

Ameri¬

that

can

industry can get back to this

'ob

'

have cut

not

arguments

or>

-

other, government agency at
this time,
especially since the
Pres*dent
late / last
week ; an¬

before

to make this model.

do

dealers

to

any

wh'ch

duction, that it

^

public

;ole

; *• %

suppliers dug
(The

for

prices

reached scheduled pro¬

Annual bill for/wages,

Co;
recently agreed to a
increase of 18 cents an hour

of advertising and selling or any

we

;

the new, price of steel."

more

November,

pro4

the
have added $41,000,-

costs to us and our

ways

in

we

in

and still have to absorb increased

conditions, about $935.

found

efficiency, / but

•

000 to. our

These figures do not include cost

We

Workers' Paradise and That Tempera-

a

Point of

/

Discomfort.

Financial Institutions Are Capablg of

/

:%

!

Affording Funds for Indus- /'1

/::%v'/;://

trial Expansion.

Florida-—playground of the nation-r-is on the verge of a great
industrial development.' Paradoxical as this conception may appear,
the

cause may

barth, its unending flow of citrus

attributed

be

fruits

largely to the'
Selfsame

fresh

'

ele-

jments/'of cli% I

;

hiate: that/

its

r

recreational

.

:

i

nc r,.ea

peo¬

as

under

the

constant

by free * competition."

i

v.

stimulus

i V f;.s v

/

..,

>

r

!or manufactured goods: Included :
n

.

%

yet
t h

real boom,

has

e

:

but

been

u~rd K' Thom"n
-V:'/ / / /.:;;//
a

clearly defined

established.

;

Cer¬

tainly, it will never supplant Pitts¬
burgh as a steel center, nor Detroit
in the automotive field. Nor would

want

citizens

this

'J/;

transformation.

to

see

such

Fortunately,

a

the

type of industries Florida can log¬
ically attract are the kinds Florida
wants;; processing and finished
manufacture of its raw materials,
the

yield of its prolific forests,
golden groves, rich farms, prod¬

ytonnage were food prod- *

textiles and apparel. furni-

icts,

[ proportions of

its

•

fail;, by / some ; $450,000,000 anhu-:
ally to provide the local market /

as

has; not

trend

:

to pl^v;

assumed

a

;

some

of-State manufacturers. Floridians

.

place in which y
work

1944

In

867,000
tons.of civilian goods which might
well; be made in Florida; in whole;
pr in part; were supplied by out-

ple-are learn*;
ing that Flor~V,
ida is" a good »/
to

Astounding future opportunities

materials;

sing'

numbers

:

^or industry and agriculture, lie inv
increased processing of native raw'

attractions. In; V

|i

Its

Processing of Florida's Produfcts

de-;

veloped

1

and winter vegetables,
shrimp and oysters. //;

;

^ ;

'

tiire; and other ' wood /products^ *
- *
chemicals, leathers, ceramics, ma-*
chiiiery and transportation equip- * / ''
ment.
By the same token, new
that- hold.

of -manufacture

fields

%

,

in Florida include
;/r&
ceramics, plastics, phosphate fin-;
ishing, processing of ramie, essen- tial oils, paints and seafood byproducts. /. ;
•
r
great promise

the - past ; several , years •
science, engineering and business?

| ; Over

backed

acumen,

/dollars;

Florida

increasingly

by millions of >
have combinedN
utilize this vast

>\\i
.

natural wealth.

/

;

/ %

»

to

*

Meantime, all the essentials of a ,
ucts of the S£a and of its mines. ;; broadly diversified industrial de¬
i Like marijr another Southern velopment are here and in abun-? m
State Florida has long been pour¬
dance.
For, added to the advan-*
> t
ing; its raw materials out for tages of a climate favorable to /:
others to process or manufacture. manufacturing war materials and
valuable
This has been true of its timber,
by-products, are other
crude
naval... stores,phosphate factors that determine-industrial
(Continued on page 995)
rock, limestone, kaolin and fullers
.

[ill Canadian Exchanges Raise Margins
C/Toronto Exchange Ffaces Minimum of 50%

I

on

[ Shares Above $2r While Montreal Elxchange Re¬
quires Same Margin for Shares Selling Above $1.00.

[

Full Cash Required

■

on

Low Price Shares*/

r:

In line with margin regulations in the United States, the prin-»;
cipal Canadian Stock Exchanges, on. Feb. 18, announced new mini-;
mum margin requirements./
J. B. White, President of the Toronto
Stock Exchange, issued a statement in which he stated that a 50%
margin will be required on all stock selling at $2 a share and oyer and that no margin transactions will be permitted in shares selling
that

under

figure./;

minimum

the

40%

rate

securities

for

and under $4;

Previously,^

fixed at
selling at $2

over,

On Feb. 16,

the Montreal Stock

Exchange and the Montreal Curb
announced that full cash would be

required
$100.; or

on

all stocks selling at

under and 50%
shares; above' this price.

on

all

/
;/According to Mr. White's state¬
ment,/ "all
counts are

margiri-

existing

ac¬

required to be brought

to the 50-per-cent basis withir
period of four months," ."while
is no suggestion that the
amount of credit being used in the

up
a

there

security

market is

dangerous at

present, it is thought that now is
the time to
take precautionary
methods,to see that such does,not
occur;
1

,'

/''•■■//%'""'//:"•

pointed out that these are
the minimum margins on, regula¬
tions of the exchange and in no
"It is

prohibit member firms put¬
ting their requirements on a high¬
er
basis, a'practice which is al¬
ready in effect in many cases."
Mr. White said new margin rates
i^iso would annly on exchanges at
way

Winnipeg,
iCalgaryi*—

Montreal,
and

ft

.■

DmH

nearn oireat l^eaa

;

Hearn W. Streat died at St. Vincent's Hospital on Feb. 19 after a /.H
short illness. His age was 61. Long

33 Vz % for $4 up to 1

$40 priced shares and 30% at $40
and

—"

was

Vancouver

active

civic

in

financial af¬

and

fairs, Mr. Streat spent his entire
business career with Blair & Co.,
,

investment

Inc.,

house,

banking

Vice-Chair-;
until his retirement in 1941.

man

served

he

which

>/

as

:;

At the time of his death he was

American
and the [■:.
Empire Electric Brake Company.
Mr. Streat started with Blair &
director of Blair & Co.,
Bantam

Car

Company

Co. in 1889

as a runner

his/

up

and worked

,

through the sales
and syndicate end of the business.
way

,

In 1920 when William Salomon &

Co.

with Blair,- h«
junior partner andafter he became a Vice-Presi-i

was

merged

made

was
soon

a

1939

dent.

From

tively

headed

to

he

1941

the firm

as

Chairman of the Board.

"

Over many years

Association

and he

most all of the
tees.

;

Mr. Streat was

in the Investment Bankers

active

of

ac¬

Vice-

served on al¬

important commit¬

He Was Secretary-Treasurer

the

group at

association's

New

York

the time of his death.

;

,

:%.>;

;

profit.

Continuing,1 Ford ..pointed. out




/

839.)

Feb.

New Mexico;'' of which' ap¬
proximately 2,988 miles are sub¬

OPA

be .calcu¬

v

"Chronicle"

its railroad

"•

order
which Mr.

29,

and

leased to the latter;

and

1945, to
Bowles referred, exempts passen¬
ger car original equipment from
price ceilings but specifically ex¬
cepts tires, batteries, radios, for-;
rous and nonferrous castings/The
regulation also states samples un¬
der which
such
items 'as glass,
electrical wire, forgings, uphols¬
tery and /similar items are not

of

Bowles,

subject

Co.

are

common

properties consist of approxi¬
mately^,302 miles of road (first
main track) in California, Arizona

it

/ "The OPA supplementary

Chester

cars.

still

are

Pacific

properties

a

entirely by South¬

The

the fact that parts for,trucks
all
automotive replacement

parts

the

Dec. 31, 1945.

Southern Pacific RR.'s

ern

our

nores

asked OPA for
an

make

debt unmatured

on

stock is owned

suppliers with parts do
have, price ceilings.
He also ig¬

his

that

not

I

clear that manufacturers who sup¬

de¬

company

does

total funded

>f *150.000,000

Henry Ford II, head of Ford Motor Company, on February 20
made public a telegram he sent Representative Brent .Spence, Chairin a »
of -"the *■>
y; /%
<?»
:
.....
v/"
House Bank- Z
thai "the statement of Mr. Bowles
in'this respect does not reflect all
ing and Cur-.:;
He

$25,867,901 and $35,033,565, re¬
1 The railroad company

o

Denies Making

the-facts.

For the

years1|943 and'1942 income avail¬
able |©r fixqd
< charges
amounted

Ford Disputes Bowles

Com-;

//^^;:.

Company

)94 in the preceding year.

rency

to

Income of the Southern Pacific

Railroad

,4,900

(Continued

1

Z

par.

61

1,'

redemption date

payment of the

und, the bonds

,,

1,765

3,842

the

the

Sinking fund redemption price
:s par. Other than for the sinking

p;/V;950

1,826

of

[toe redemption date.

'

.'

Holders /Of

redemp¬
tion price thereof and interest to

-Change-

■•IV; 1945

1,385

;; ■' Texas

for

S.—000 bbls.

3rd Quarter

Never Rise to

Says Permanent Popu] Jation is Growing Rapidly, Occurring Mainly in Large Industrial
[ Centers, and Is Leading to a Diversified and Flexible Economy.
| Notes Rapid Reduction in Mortgage Debts and Asserts Florida's

well

the bonds of Series. C will be: in¬
vited to present their bonds / in

the

of

barrels per day

tures

-bonds, 3%%
IF /1 o rid a ' s
Series C, due /Jan. /1,- 1996, * at
TPl.e
an in¬
103%%: of their principal: amount
dustrial State \

keep;.pace

branch

producing

5,000,000

be hecessary,;to be

may

of its first mortgage

exploration and development

Pescatella

Michael

•

other

such

fibout May 15, 1946, of $50,000,000

This

reserves.

with similar requirements, exten¬

:

as

With

vances; will; be applied by * the
latter to th e redemption,/ on or

al¬

from

then, that in order to re¬

means,

together

.

oil

crude

!

on

paid by the Soutbjern"Pacific Co.
to the Railroad Cojnpany in Teimbursement of op^n -account ad¬

,

a

ready

of

one-third

r—

-

-

a

ap-

As

withdraws

daily rate of
1,600,000 barrels of petrol-;
cum

made

be

result of the very heavy
demands
there
were / important

I

s|

equalled

funds

required to

'of%2.847%

the •'sale- o£-$50,Series/% bohds'due

bonds,

ments

bne

1, 1986, which'was ; worr: by
Kuhn, Loeb & Co.;
I Proceeds of the -said' Of .-v the

apparent that the major readjust¬

in

war

the

Jan.

y.y/ yy-y;'

.

than

1)00,000

In view of these differences it is

At the peak v.

,

summary :

the present issue is

on

netted Feb. 4

,

-:'

-;

'ower

by Kuhn,. Loeb &
The in¬

similar coupon.

a

terest cost

Texas

areas,

California,, while in - other
parts of the country the output of
i oil;
actually showed > a decline.
-This is evidenced in;;the ;foll0w-

never

industry.

two

and

j

of

from

came

submitted

was

Co. for

—

—^-—

That, in Addition to Broad Diversified Industrial

Development, Florida Is

was 99.52%, a net inj;
erest cost basis to the carrier of
2.768%. A competing bid of 98.4199

in its first full year of peacetime

■

accrued

and

Points Out

ucts.

/

winning bid

V/;:::';A.J

The outlook for the oil industry

100%

at

nterest, subject to Interstate Com¬
merce Commission approval.
The

operations cannot be disassociated from the major influences of the
war.

of

:he* bonds

Depend Largely Ion Balancing Supply With Demand,'but That
There Is No Question as to Favorable Future Position of Oil \

*

Co.,

$50,000,000 Southern
Jacific Railroad 2%%, first mort¬
age bonds. Series F, due Jan. 1,
996, and immediately reoffered

'

-

&

a
large group of investnent bankers that won the award

Transportation Facilities Will Intensify Competition for Markets.
Sees Need for Balancing

Stuart

headed

Is Likely to Set World Price, and That Enlargement of

_

/

Volume

163

Number 4466

THE COMMERCIAL & FINANCIAL CHRONICLE

Attacks New Wage-Price

Policy

■

;

.

Robert

" Wason,

R.

Manufacturers,

on

of

the

there is

m

no

such thing as "free

lective

/the Administration:The

col-j

§HBp:

/tBSI

7

an-

J* W
$

•wage-price
an

of

determined wage increase.

Under

control.

JB'

Gov-

d

d

.

.

.

enforcement of
./.

the

.

of the

resources

Justice

and

inventory controls

Department

Treasury
will

be

called upon.

the

lief

of

the

control; not the road

to the restoration of freedom and

individual opportunity.

For months the NAM has been

emphasizing that inflation cannot
be prevented
price policies

have

urged

sound

if

these

the

national

wage

and

continued.

are

We

adoption of a
labor policy
by

We

say

these

nation is not in the public interest.

Gov¬

formula

to

government management and di¬

It will lead to less, not

what

duction; to fewer, not
to

lower, not

a

more pro¬

more

jobs;

higher standard

a

the

removal

of

price

These

L*.st

on

that

FROM/THE PHILCO

e-

there

•;■'•/ \

tion

••

protect all the American

people.

It is going to continue to

fight for the right to produce; to
produce

■

have

have

to enable

under

risked

vestment

business to get higher profits.
They
have been made in the sincere be¬

and
can

conditions

their

in

above:

savings by in¬

American

all,/fair

consumer..

LABORATORIES

one

to inflation.

salvation."

But unfor¬

tunately under this new formula
Jit will still not be possible to get
; the r production that is necessary
'for the country's "salvation."
f\
,

•tH Under

the

order

new

'wage contract, even
since V-J Day, will

every

those

made

have to be
reviewed in the light of the new
/"standards" set up by the
"

Presi-j

dent.

IN

RECORD

Every price—and there are:

!millions

of them—will have to be

."redetermined" by OPA.

This is!

CLOSE

not the way to get all-out produc-i
tion.
;,i:v S'i'•'•> y J;:.;, v •/; J y
•/\

bOOR/v

•

i-'r^'The President

that lasfcAiF-j

says

"gust "the determination of/wages
was

returned

free

to

collective

One of,the sensational

bargaining within the framework
:of

the

that
"labor and management were set
free to adjust wage rates to what¬

/

ever

extent

was

raising prices."

possible without
The truth is that

the music
;

As Burnet Partner

..

all

more

:W. E. Burnet & Co., 11 Wall
Street, New York City, members
of the New York Stock
Exchange,
•;$

: •

/

•

Blewer,
leased

active
:

w

v

..t h

armed

e

y
:

re¬

Bhas be n re¬
general

firm/;/

'

i

V;

Blewer,

/

military, leave

was

-

-

on

/

absence for

r e.

th

a n

yea r,s
been as-

./signed / since
June,; 1944, tO
-T.... duty with the
War Department General
Staff,
serving in the Civil Affairs Di¬
.•..;:

,

j

- iv

•

,i-

you

y,

'■•'

Music^
,

••

•

Reproducer

tdie professionar standards ' of TecoM

broadcasting studios. Advanced-FM, invented

and

developed by Philco, revolutipnizes all former ideas
tone

fidelity.

Yes, Philco. for /1946 fulfills the promise 'bf-12

.

Lt. Col. F. L. Blewer

*••'.••■,••;

."i */'

t: pf FM reception in noise reduction^,

7 three
.had

f or r the /Greater/

reproduetion^formerly heard only from the best

"1

who

of

brings

•

the

y

Jfm o

•

'The sensational'hevt Philco
Dynamic

part¬

of

Col.

•'

Enjoyment/of Radio and Recorded
'J

sumed ;
his
duties ; as
a
ner

New Developments •]

forces

has

and

superb

service

i t h

-/straight

years

of radio leadership. "V
7 A-

'./,/.•'

.

y

\

/X ,..y7'.

.

PHILC01213 RADIO-PHONOGRAPH. Latest Philco devel-

*'7 opments

housed in authentic Chippendale cabinet."

'

•

vision of the Office of the Chief
of
Staff. -During recent months he
was Executive of
the Economics
and
Supply branch of that di¬
vision, where he was concerned

with

financial, civilian supply and

other economic problems of areas

PHILCO

occupied by U. S. forces, includ¬

ing Germany, Austria, Japan and
;■ ! :V'v7
/
a / Vj'

Korea.

amom

n

rfMu/t///ie

i/d

y&i

,

'

\ Connected with Wall Street
since 1921, Col. Blewer has been
a

general partner of W. E. Burnet
& Co. since June 1, 1935. Prior
to
that he was with Harris Forbes &

Company and The Chase-Harris
Forbes Corporation. ■/.-. vz -




automatically! Thanks

z' > *bv'

r o m

TUNE IN:

The Radio Hall
of Fame, Sundays, 6 P.M.,
EST; Don McNeill and the Breakfast Club,
Monday
through Friday, 9:45 A.M., EST; ABC (Blue) Network.

'■

stops
to

fussing with lids, controls,

PHILCO

GSC,
f

plays, the record

dies. It's brand

that Lt. Col.- Francis L,

.

;J/

.

y/:r
y

.

jn the slot and close the door. The record starts, -'

-

announce

single record

radio-phonograph with the/amazing Automatic
Record
Player, All yQU do is put any size record

F.L Blewer Resumes

%

developments - from the

Philco laboratories for 1946 is this

price level";

present

y

'V..:•

1201

tone

new

.,.

■'

\
•

1

1

has

and
\

'

•

v":'

4

no

tone arms or "nee-

-.y

' 7

only Philco has it!
V'" ' .*

i

<,

i,

*
v,

"f

•

V* *

'''

powerful, fine performing, radio,
from radio and records, distinctive cabinet.
a

'

when it's finished ''//y
Philco^ there's

industry,

to the "Ameri¬

v American
industry agrees
:! wholeheartedly
with
President
Truman's statement that "produc¬

our

which

fair to labor; fair to those who

are

hand and
'the shackles of price control on
the
other, to get that record-;
/|breaking volume of production
which was, and is, the only answer

tion is

infla¬

,/,.■/•;

to
this fight against' infla¬

'

.

,

is

•

to

*.;./..//
>

fight

American industry is going
continue

Robert R. Wason

the

on

this

inventories which

when

do

tion.;.;-;'

ceilings

recommendations

not been made in order

felt

against inflation must be won.
Business does not prosper from
inflation.
Business prospers by
turning out goods at prices which
represent honest values, not
by
it

We have urged

which cripple production.

•

have

speculating

Congress to restore genuine col¬
lective
bargaining and promote

rection of the economic life of this

unchanged.

are

pre¬

that only in this
way could
country be protected against

inflation.

■

;; wage increases 7
.regardless
of 1

•productivity

"priorities and allo¬
cations powers will be used vig¬
orously
there will be strict

'

for yy:

s

a

shall be, under what condi¬

wages

." ernm.ent-in:m an

new

ernment still proposes

impossible,

.spired

the

conditions

that it is

confes-

under

orders

to

extension

and

taxes.

•admission

sion

to

government

the road

is

.

parties involved to accept

a

are

To enforce

of living.
It
perpetuation

bargaining'1 when govern/
This means that basically : this
says beforehand what the
new order establishes a
"managed industrial peace. We have urged
wage increases are to be..
Under
present conditions collective bar¬ economy" without benefit of Con¬ the reduction of government ex¬
gressional debate and approval. penditures to a level at which the
gaining is a mere sham—a means
American industry is convinced budget can be balanced
without
for forcing one or the other of the
that such a program of detailed unbearable

formula is

It is

investors
receive.

and

ment

nounc.ement

.price

profits

oe allowed to

these

.

U

u

m

President

+

.

what
,

National Association of
Feb. 15, issued the following statement on the new?
A

wage-price
for

,

products,

Wason, President of NAM, Holds-It Is Inflationary. Contends
That Free Collective Bargaining Cannot Exist When Government
Says Beforehand What the Wages Can Be.
\..y.; '!"v

!

y

tions production can be carried
on,
what industry shall be
permitted
to charge for its

'A

';\V'

THE COMMERCIAL & FINANCIAL CHRONICLE ■'■ 4 >■;■ Tliursday, February 21, 1946

974

able for
terest

Charges.

teeship (on equipments, etc.) it is
that

indicated
been

there

1 Build Up Reserves §

have

would

than

less

somewhat

'''iv-.V

Allowing for in¬

.

actually paid during trus¬

'yROGER
Mr. Babson Characterizes

Gambling, Borrowing and Spending
Merely in Anticipation of Inflation.
Points Out the Value of Ci
Reserves to Business Man and to Wage Earner. Holds That During
Troublesome Years Ahead, Physical and Spiritual as Well as (
Monetary Reserves Will Be Needed. ;
''
l \

There has been

considerable excitement in rail circles recently

allowed

accumulate

to

unpaid,

•

"

probe into railroad reorganizations by the Senate
Interstate Commerce Committee.
Coming on top of the so-called
Heed Bill in the House, which would return most of the roads now
reorganizing under Section 77 back to the old stockholders without
capital revision, the action of the Senate Committee is taken as-hold-

to®

hope

considerable

out

ing

Chicago Railways

Wheeler's

re¬

paid.

cited

Some statistics were

pur¬

paid dur¬

be

ing the trusteeship period.
It is
interesting to examine some of

Hock

at.

Pacific

Island

are

roads

Rock

Island

the

Missouri

It is

point.

of

their

would

interest
had

have

a

surplus of some $34,000,000
and Missouri Pacific roundly $31,-

."V
'
and other

New

York

Stock

Exchange

leading Security and Commodity

120
231

Exchs.

Broadway, New York5,N.Y.
So. LaSalle St., Chicago 4,

111.

ally these would have befen in¬
creased by

the high earnings re¬
■.

,

,

Pacific

Missouri

of

end

of

as

of

last year is in excess

$170,000,000.
In this instance,
however, there is at least a par¬

from

haslearned from

It

every

unpaid

$151,115,000. Before al¬

as

would

terest

be

indicated

roundly $165,000,000.

trusteeship, period
the company

at

During the

through

1945

reported earnings of

approximately $144,000,000 avail¬

war

Mis¬

earnings for the payment

the

senior

of

principal

proportionally
serves.

some

will need

Members New

61

What I have

said

above to

-.' Q

wage

co¬

applies also'; to shop- 4- •
keepers and little manufacturers. re "...
Now is the time to spend money " T
and t hours on study: to; become 4
more efficient in your own line. Of
workers

,

is al-

/

good reserve. Non-perish-

■

course, money in the bank
ways a

„

able and standard inventories are

-■

good reserves to have stored away.
During the troublesome yearls
that business will some day eft-

;

counter,

lot of unemployment.

money

Now'

-

or

,

ly

fam-!

a

3erves

and business success../? Un- !

.

known men who have the physi- i
ily to, prepare for it and lay a re¬ cal reserves to "take the gaff"
serve
aside in bank accounts or! rather than the "brilliant leaders"
Victory Bonds..
, I
are the ones who survive panic&
Don't be content to build up only: and depressions.

New York 6
Bell Teletype—NY

Telephone—DIgby 4-4933

-

for small

cap¬

is the time for you and your

York Stock Exchange

Broadway

ways

other
reserves 4 than
merchandise - will be
needed.; Looking,, back over my
50 years in active business, I am
portion ; of your weekly wages.' greatly, impressed with the relaSome day you will be confronted; tionship
between >; physical i, re-

pflugfelder, bampton & rust

RAILROAD

When unemploy- j
in 1 again the • least

money reserves.

1-310

ment? starts

Let's Not

;

efficient, workers

Times

all

working

are many

businessmen to store up reserves.

up

'if 4:«

Specialists in

at

There

Wage workers also need to lay
reserves during the next two
or three years as well as do their
employers. Systematically save a

Railroad Bonds and Stocks

Teletype :

Situations

What Are the Best Reserves?

Advice to Wage Workers

with

Selected

more

ital than at present.

SECURITIES

profits for their families to spend
foolishly.
;

small

.

NY 1-1499

HA 2-6622

•

>

This; especially applies to

one

YORK 5

stores will

day be crowded out. This
will not be due to "bigness" but

Such

claims.

.

some

of the sive credit facilities. They now
payments, fail-to realize that when inflation
exclusive of equipment trust ob¬ gets well under way it will be
ligations, rBn close to $49,000,000. very difficult to get credit either
Even with the principal payments from banks, or from wholesalers.
the net increase in claims coming As prices will then be going up,
ahead of the stocks; is indicated without notice, and goods will be
worth more than money, whole¬
in excess-of $121,000,000.. In com¬
salers will give no credits.
All
parison, the. road reported net goods must be bought on a strictly
working capital of less than $62,- cash basis. This means that every¬

of

Many small

is not so
or manu¬

because
the
large 'concerns are
now saving their profits and are " V*'
should more than)
paying small dividends while the
increase its
re¬
little ones are pulling out all their

concern

its

accrued

that

fact

to weather the x

?

;

showed

1944

the

in

,

*

retailer now is car-:
portion of the items

a

reserves

facturer.

sad experi¬

during an inflation period
fact, y as
inflation
advances

In

have the

the great need of large re¬

serves

<

■

-

inflation storm; but this
with the small merchant

businessmen who have not exten¬

for

offset

72 WALL STREET

Telephone

busi¬

inflation, will not get caught

ence

Store up knowledge in
well as money in the;

normally carried. Moreover, the
supplies of these items are much
;
less than normal.
Putting these ; ;<:
two factors together it will be*: ~
seen that much more capital will
be required to carry a normal in- l ;.r;
yeritory as inflation progresses.
Certain big corporations now

Businessmen

Big

trade paper

The average

ness, which has had experience in
Germany. France and other coun¬
tries- that have really suffered

Van Tuyl & Abbe
NEW

Babson

your

knowledge of,
kept and pro¬
boss to recom¬

as

rying only

'

souri Pacific has utilized some of

provided, in the reor¬
ganization plan) this unpaid in¬

Tappan Stove Co.
Skilsaw, Inc.

terest

the

show the most

What About Inventories?

.

:

Small

head

bank.

.

Advice to

you.

your

gam¬

tial

ments

Magazine Repeating Razor Co.
Universal Match Corp.
Berkshire Fine Spinning pfd.
Missouri Pac. RR. Serial 5%s

.

of

since mid-1933. The annual report

lowing for payments of cash in
the latter part of 1945 (cash pay¬
-

kiad

W.

'

kB'-c

——-

can

help

ram¬

bling.

Ask
some

you

pant.
Such
policies
are
the
biggest

obligation

of

Chicago, Hock Island & Pacific

comes

Roger

■

to which
subscribe or some cor¬
respondence
course
which
will

with
"p h o n y"
money
when,
as, and if in¬
flation
;
b e-

$130,-

^

mend

gages

working

Estimated matured unpaid in¬

;

moted.

up

mort¬

has been in the bankruptcy court

interest of

TRADING MARKETS

interest

holders.

000,000 at the end of 1944. Natur¬

ported in 1945.

some

unpaid interest still has a claim
on
the properties and earnings
superior to that of the old stock¬

cash

MEMBERS

of

excess

could be
substantially reduced even if the
plan ;were turned down.
Just
as
obviously this obligation for

had these two

even

all

paid

and

in

cases

claimed that

Ernst&Co.

paying

so

how they may

Timm Aircraft

in

'i

their work will be

\ with
idea
of

their

Certainly

Those who
in,
and

interest

capital would have to be retained,
it is difficult to see just how

and speculate on just
have been arrived

these figures

indicated

first.

g

the

the

000,000.

•■■■■■':• ■
'V'1/
.-■v..;; f

are even

—••

money

interest at the end of 1945 would

cash

large

placing the roads in a
position. .;

if all interest had been

Alabama Mills

borrowin

the non-payment

porting to show the cash balances
of the bankrupt roads could

interest

some

5s, 1975 & 5s, 2000

unnecessarily®

4

.

Even with

have had at the end of 1944 even

& St. Paul

4'v"-v /:

just how

see

Some "wise boys"

'

•

,

their money today, both in

many people are careless with
connection with investing arid spending.

conditions if the interest had been

suffi¬

been

have

accumulate

tp

solvent

Chicago, Milwaukee

"•J'^Too

the
substantial "cash smplus" could
have been built up under these
to

as

,

been

have

of
company
had
net
working capital of less than $62,000,000 on Nov. 30, 1945,
If the.
reorganization plan were aban¬
doned and cash payments made
last
year
were
applied against
back interest the matured unpaid

roads

these

of

cient

—-

difficult

is

balances,

•

would

there

much, if any, earnings if the prop¬
erties had not been improved) it

marks, a.s quoted in the press, to
the effect that earnings of many

1927

Cons. "A" 5s,

' Senator

if

ful

Particular interest centers

around

(it is doubt¬

erty improvements

reorganization

the

of

holders
roads.

had not had to

road

spend substantial sums on prop-y

stock¬

and

bondholders

junior

if the

Even

the proposed

over

W. BABSON

$140,4

000,000 earnings available for the
$165,000,000 of interest that was

will 'be

let

go;
I

Forget

Spiritual

Reserves

.

must

say.

a

word about all-

These figures just do not, important spiritual reserves. There
up to any result such as an! is an old saying: "Troubles never
indicated "cash surplus" of some come singly."
When things are
$31,000,000 after payment of all going well it is easy to forget God
interest and before including the and the Church and Prayer. Then '
favorable earnings of 1945..
j when troubles come we complain
cannot quickly get ;
;.~It
is
quite
possible
that
a because, we

000,000.

JB.yt&hzbii %$).

St. Louis-San Francisco

INCORPORATED
25 Broad Street

New York 4, N.

Y,

Railway Company

(when issued)

GUARANTEED RAILROAD STOCKS BONDS

.

4

•

^

j

Chicago, Indianapolis & Louisville Ry. Co.
(when issued)

Telephone Bowling Green 0-6400
Teletype NY 1-1063

Bought
•

—

Sold

—

Quoted

Complete arbitrage proposition

f '

•

'

Members New York Stock Exchange

-

:

f^

.

r

-

all-powerful
help
from
thorough investigation of reorgan-j that
ization procedure- is galled - for,; Faith for which we are so hungry;
particularly with respect to the> To enjoy spiritual help in time of
long
delays ; experienced under trouble, we must build it up in
Section 77. ' It is not possible in our daily lives when things are
justify

*-V

•*

a

-

thew, Chapter 7: verses

Warren Division
2nd Mtge, 4-6s

We have prepared

a

brief memorandum

Lehigh Valley Railroad

on-

Due May 1, 1992

t General and Consolidated 4s-Ut/4s-5s,

GETCHELL MINE, INC.
A copy of which we would be
to send you upon

pleased

Mclaughlin, reuss & co.

request.

Adams & Peck
63 Wall Street,

New York 5

BOwling Green 0-8120
Boston

Tele. NY 1-724

Philadelphia

2003

Circular Upon Request

(When Issued)

Hartford




Members New York Stock
ONE

1. h. rothchild &co.
Member of National Association

of Securities Dealers, Inc.

52 wall

street

HAnover 2-9072

.

n.

y. t*

5

-

Tele. NY 1-1293

WALL STREET

TEL. HANOVER

2-1355

- v
•

,.

''

*.
' '

going well. Before going to bed
tonight read in your Bible how
Jesus ended up His famous Ser- .-c;
mon on the Mount as told in Mat¬

of available statistics to
claimt of -solvency for'
these roads,; nor is it possible in
this
way
to ; legislate intrinsic
worth into any railroad security.'A
the light

;

120 BROADWAY, NEW YORK 5, N. Y.

Telephone REctof 2-7340

:

,

request

on

SUTRO BROS. & CO.
& Western R. R.

.

..

Active market for Brohers & Dealers

Delaware, Lackawanna

add

j
;

Philadelphia Telephone

;
—

Exchange.

NEW Y0RK 5
TELETYPE NY 1-2155

Lombard 9008

24-29.-4

• V;

;

Volume 163k Number 4466

THE COMMERCIAL & FINANCIAL CHRONICLE

couraging.

National Debt Retirement
Ilk (Continued from

page 966) ; j ' before taxes. ;A reduction in the
tries since 1932 and in this-counr I rate on certificates would be followed

try since 1934.' It remains to be

■

c;

•• by
a further /increase in
price of medium- and longterm/: bank-eligible: Government
obligations and (thus widen stil|l
more
the gap between the; price
on /these
obligations and that of
obligations not eligible for com¬
mercial banks. Since a large nurnf

the

seen, however, whether the Gov¬
ernment will in the future adhere

'

to

the

tem.
:

compensatory budget sysr
If it does there should be a

substantial reduction in the total

U / public
:

debt

during the years of
high business activity.
:
!
~

.'v

ber

Once

of

the

particularly

banks,

have

labor and management
compounded their contror
versies, business activity during

small institutions

V

•/

the next few

country, operate with a considerr
able
amount
of
time
deposits,
they could ill afford to invest in

/

%" at

all

years

is bound to be

high level.

a very

,tor

kinds

of

The demand

commodities

'

great

'yery

the

and

amount

low

of these

result

a

ip
of

material

factors

two

and:

.

1945.

of these bonds
by
commercial
banks
would
drive the yield even lower. This

in turn would force

institutions

of these

some

should- be

-

not' merely

cost to the

,.

the banks, and the
money market.

:

Proper management of the debt

public-debt

requires

that

ascertain
needed

the

the

*

,

volume

of

legitimate purposes.
obviously this is not an easy
task yet sufficient data are avail¬
able to the Federal authorities to

While

obtain
it

is

satisfactory

a

found

that

answer.

the

}

has

been

monetized,

ury; to take measures
funding
operations
to

into

considered

are

:

poses.

.

In discussing the management

,•

of the floating debt the bulletin
states: The need for a large. float*

•.

,

;

-

{

i

decline. in
i

-

Furthermore, a decline in thh
yield of. corporate bonds would
intensify,
the
competition
for
mortgages accompanied not mere-ly by a further deqfease/in mter-

Question, of Floating Debt
I

difficult posij-

through

est rates but .also, an increase, in

appraised

ing debt is today perhaps greater
than. ever, before ■ because i the
liquidity of the banks and the

cause;

future.

yalues

serious

which,

may

difficulties. in/. the

Therefore, in considering
the advantages and disadvantages
that may accrue from a reduction
.

fluidity of the money market depend mainly on the short-term lit the rate on certificates of in¬
i Government
security
market. debtedness,
the
conclusion
is
! j i Since the volume, of deposits has warranted
that the disadvantages
^Increased at a much faster rate to.the country as a whole would
v. - than
the capital; resources of the Outweigh the
advantages: k;
I
i
»banks,
many
institutions
have
The main concern* of the Treasr
k adopted a policy of investing a
*

,

carrying the

of.. considerable

be

permitted

the

debt

manage¬

Of greater import¬

volume

of

bank

and

the

should

this
be

embodied

in

the

counteracted

financial

comt

estimated

more

billion

dollars

post-war,
when

-

in

fiscal

of

the

over

4

bond

the

the

at

option

of

riskless

a

investment

which

a

banks,
more

into credit

bonds.

development is obviously

Too

much; concern" has been
by the monetary author¬
ities about, the growing earnings

jof{/the commercial banks.

first* full

..

-

the /

•

United

contemplated

their

States

/would

owners

Treasury
policy.

;

in

bonds

'

definite

a

>

,

s

doubtful

whether

lt is
earnings,

the

►

v

Edward Walsh
Edward

D.

to

Walsh

Open

is

forming

Edward D. Walsh Co. with /offi;ces
at 115

Broadway, New York City,

to engage

in the investment busi¬

Mr.'Walsh has been

ness.

in the U. S.

Army, Prior

serving
to /mili¬

particularly of small banks; will tary duty he was with James
continue to mount, especially in Yanderbeck of New York.as bond
view of the certainty that expen-r trader. ■;VA"/)■:

-k Government securities w|iha«ma~
I turityr up

to

one
are

This announcement is

because
considered as
Many banks

year-

carrying no. risk.
yirhich have experienced an in¬
in
deposits
percentwise
y greater than the average increase
Ifor the country as a whole, and

r

\ ;>'/

■'

„

V

f

;

offer to sell or a solicitation of an offer to buy these securities.
offering if made only by the Offering Circular,
•k;

riot an

The
•

t

:

f;

1

A

n

,

'.

.

i v

/

'

A

.

.

crease

:

*

mindful that

take place in the not: dis-

\; may^
j

S50,000,0()0

decline in deposits

a

;. tant future, have adopted a policy
v- of
holding a larger volume of
short-term
Government
obliga¬
tions of properly spaced maturi¬
.

ties in order to be able

First

to meet

-withdrawals of deposits as, if, and

.

when

Dated

;

♦
*

Mortgage Bonds, 23A%, Series F

January 15 1946

they occur. Moreover, a
large percentage of Federal,
State, and municipal deposits,- ineluding deposits on account of

Due

r

.very

Guaranteed

unconditionally

as

January 1,1996

to payment of principal and interest hy endorsement by

Southern

Pacific Company

•

k sales of / Government securities
k <war loan account); are invested
short-term

in

Government

,The issuance and sale

obli-

'

banks

;

W-L

Price 100% and accrued

considering the cost' of the
public debt to the' taxpayer the

i \ bulletin

remarks:

While

the

The

;/•' sharp increase in the public debt
not

was

organized under the general laws of Pennsylvania.

kkkkkl" .k'k-/1

:

Debt Cost to Taxpayers
In

'

subject to authorization by the Interstate Commerce Commission

Opinion of Counsel, the Bonds will be legal investmentsfor savings banks organized under the laws of the
States of California, Illinois, New
JJampshire, Flew York, Ohio and Rhode Island, and for savings

gations. These factors alone make
it imperative that the Treasury
maintain a larger floating debt
|; than was the case prior to 1941.
'

are

In the

i'•

kk/k:kVkk

of these Bonds

accompanied by

a

'

'

Mm

Offering Circular may be obtained in any State in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State.

>

corr

j, responding - increase in the in;
0 terest burden due primarily;- to
the general

:a-\

reduction in interest
and1 the increase in the

rates

M

k amount of the floating debt, ar-

mm

gumehts have been presented in
favor
'

of

the rate-

further

a

reduction

on -certificates

edness.

.

.

blair &

rothschild &. co,

l. f.

f rate structure and particularly
against a further reduction in the
rate of certificates of indebted¬

dempser^comt'any-

,

-

r

If the

rate

w

banks

and

more

gfe~'ry&son

'into

more

k medium- and long-term Govern¬

INCORPORATED

^
'

obligations, f The

1

very
*

few

company

!

& co.

julien collins & company

,..

I

% graham parsons a
,

co.

the milwaukee company

latter

has

increased

materially
months

present time

and
no

during
there

) \

the
at

granbery, marache & lord

: "

v

the

ligation which the; banks may
kpurchase to. yield jt%.to .call-and.

•

i i

hirsch &co. / mullaney/ross & company/ e. m. newton & company

■.

reynolds & co.

riteri&. co.

f. s. yantis

co.

incorporated

last

Government ob¬




-

price/ of
already

is

-

'

■

the

i

•

wertheim

reduced, it would force the

were

ment

otis so co.
^(incorporated)

green, ellis &i anderson

auck! ncloss, parker & redpath

certificates

on

harris; h alu

m m v*ohcohrorated)

.

ness.

republic/company

schoellkopf, hutton & pomeroy, inc.

/

are,

central;

(incorporated)

pf indebt-

bu rr &. cow pan y,lNc:~

There-

■/V

in

.however, J vital
j; reasons against a change in the
;

halsey, stuart & co. inc.

CO., inc

!!

:

i

The I}on4sT;rA offered when, as and if isrued ar.d s-uhject to acceptance by theTurchasers, to approval of counsel, to prior safe, to withdrawal, cancellation or modification
of the offer "without notice,and to authorization ty the 'ntcrstate CtmmtVce ( cm mission of their issuance and-sale, It is expected that bonds in
temporary form will be
available for delivery on cr about March 18, l94C,-at the cff.ce; of Hakey, ituart & Co. Jr.c., 35 Wall Street, New York 5, N. Y.
.

February 19, 101>.

~

\* ■i-i-.v' /■ V

rxr.T.si is m

mz

is:.'

'/

by

the

guide

adopting

•

the

of

use

savings

k I large portion of their deposits in

k such obligations

has

an

especially
may- be forced

shown

year
1946-47,
activity is bound
very-high level,, is disT

a

in

not desirable.

business

to-be-at

and

Such

a portion
The fact that

deficit

re¬

deemable

institutions,*

the; small

the Federal Government will have
an'

decline

constant/

yields. If the decline should per¬
sist; there is a serious danger that

conf

efforts be made to retire
>

continuing to issue obligations

by

deposits but would also halt

the

pensatory budget system, then it
highly desirable that the Fedj
eral budget be balanced as soon
as
possible
and ; that
serious

public debt.

<

con¬

-

is

of the

;

Treasury should also

anti-inflationary effect on the
obligations into long-term bonds' national economy, the existence of
offered to the public and particu-; such a large amount of demand
larly to the large institutional in-* claims against the Treasury con¬
vestors.-* Such a' measure would' stitutes a peril to sound d£bt man¬
hotmerely tend ; to prevent' a- agement.;
Further studies about

principle^

so-called

The

sider carefully the advisability of

Treasury by funding maturing »

bank

should

whole

While
such
securities
At least to owner. increase; could * have admirable features and offer

further increase in the volume of

the

the

on

in .deposits,
extent

some

legacy of 278 billion

practice

the

tificates of indebtedness.

deposits.

moderate rise in the volume of
loans will lead to an in¬

crease

managing the public debt
is of the utmost importance.
If
to

increase

payer, the amount
is
insignificant,

a

bank

of

Administration

would

sound

-

policy.

lem

tinue

procedure

to

dollars of Federal debt the prob¬

the

real estate mortgages.
might be advisable for the
Treasury to refinance a relatively

cost.of the public debt to the tax¬

a

convert

long-term bonds with

a : war

b,y investing

It

...

circulation/ the inflow of gold, and

:In conclusion the bulletin states:
With

en¬

satisfactory
in corporate

bonds and

The return flow of currency from

bonds

business" activity.

the

larger : than

a

next

obtain

and

determining factor in

in

it

part of the short-term obligations
-now.
held 7 by
the commercial
banks

to

yields

deposits

Government

on

inadequate

however, when
ance than the cost of
carrying the- contrasted with the danger in¬
public debt is the urgent need to- volved in the present policy of re¬
prevent a further sharp increase financing all maturities with cer¬

the duty of the Treas¬

tion

the

deavor

savings

return

devising

,

debt

of

is

not

must

ment

bank deposits is too
large or, td
put it differently, that / too large
a portion/of the
outstanding pub-*lie

the cost

the

obligations

become the

of

banks would be in

amount1 needed for business pur-

;

ment

Once

volume

*' While

.

to
increase.
conditions banks

with

-

deposits

for

,

during

operating
find

bound

are

present

small portion of the maturing ob¬
into
bank
importance, particularly since the ligations
eligible
annual interest charge is
already medium-term bonds carying 1&
over
5 billion
and
\xk% interest. While such
dollars, this ele¬

Treasury first

imperative since it would reduce

*

due.

Under

taxpayer but' also the can exert a great influence on
changes in the types' the inflationary forces menacing
of obligations and their
the country as., well as on the
owner¬
ship have on business activity, oh money market.
."

the volume of bankdeposits, which

;

ditures

Gov¬

come

obligations

of

effect which

Redemption of Federal obligations
held by the banks is deemed to be

should be used to retire the debt,

acquire

1946

year

dollars

Throiigh'proper handling Of these
maturing obligations the Treasury

the

of maturities and interest rates that
a
lower quality. Since prices of Would /appeal to institutional in¬
i
many
of these bonds \ fluctuate vestors.
|. 1
with
business
conditions,
thf
Conclusions
to

During the

71; billion

ernment

ury"in*administering;, the public
debt

would be

2.52%

was

Increased purchases

companied

by satisfactory em¬
ployment. Under such conditions
Government revenue ought to exr
ceed expenditure and the surplus

decline

in the week ended Dec, 29,

national production as well as inr
are bound to be high, acr

come

■

return

yielding- Government
bonds and would be forced t6
acquire
corporate - bonds.
The
yield
on
high-grade
corporate
bonds has witnessed- already a

purchasing power in the hands of
the people is greater than ever be¬
fore in the history of the nation.
As

throughout the

Urged

about

975

;'v:

■••

'

•

•

>•

.

ni.

sip *•*

9

"t

.

*' ■

*4

-'

i

,-■ i

•

m

/

,-

THE COMMERCIAL & FINANCIAL CHRONICLE

976

the

bonds

&

Bank

Chemical

Co., New York, is now
ing the 12th edition of

Trust

distribut¬
their an-

survey of municipal bond
prices and yields* a study consti¬
tuting a valuable case history of
jfche phenomenal rise in valuations
'of
local
government securities
Isince the depression year of 1933.
The pattern is clearly established
in the trend of prices for the 200
Individual State and local issues
itised in the survey, which repre¬
sent bonds of all States having

jhual

,'V.:
•The
bank; in a supplemental
tabulation? sets forth prices and
yields for 20 issues selected to
give weight to geographical fac¬
tors. Despite the steady shortening
of maturities in this group, the

the close of 1945, yield
coincidentally ,declining
from

all-time
The advance in 1945 alone

5.29%

1.47%,

to

.high.

from

iwas

a

new

average

an

price

of

T33%,' with a change in yield dur¬
ing the year from 1.61% to 1.47%.
Comparison of individual issues with the average
in 1945

**

gains ranging up to 10%

Jf! Shows

Appoints

obligations as.

for such

New York City 414s,

only

^registered
IPort

smaller

slightly

of

for

1981, with
advances

such

New "York

issues as
Authority

|2s, 1974, up 10% points, New

price rose from 92% in
125% in 1945 and the

average

1933

to

tributed

sons,

Authority Awards ' y
Bonds to Blyth Group at

low

cost

but,

nancing

on

maturities
revenue

j

1977, City
-

of

appears

record of simi¬
any

in

a

the

revenue

ness

approximately

the fact that Blyth &

Little

of

the -.cities

of

or

cost

the

;

bond;

to

bonds

are

until

1986,

Moreover,
to

the

a

comparable tribute

soundness

of

the

and

obligations

agency's

investors

was

evidenced

Co. and

sociatedx underwriters
in

attractive¬

in
as¬

succeeded

disposihg of all but $7,254,000

mature

not
the

award/1
v

The

,

(

bonds

new

benefit of

will

have

entire issue

are

subject

municipal

The offer-

THE SMALL TOWNS
OF GEORGIA
Ideal industrial sites

are

are

dated March

serially
1975

located. Here you

on

incl.,

redemption

crease

from 101% if the bonds are

redeemed in the

period beginning
March 1, 1951, and ending Sept. 1,
1960, to 100%% during the five
year period ending Sept. 1, 1965,

utility
method

indicated.

was

remaining

for

pay

water

Of

water-projects
gen¬

11% from

proj¬

bination

prior

on or

of

two

methods." Re¬

funds, for example, will

serve

for exending water lines in

pay

Weslaco, Tex.; building a water
softening plant in Webster City,
,Ia.;

enlarging the water

voir

in Clifton Forge,

doubling

the

reser¬

Va.; and

capacity

of

the

filter basin and pumps in Cartersville
;ft

•

Of

$6;

the

sewerage improve¬
financing was report¬
ed, 31% will be financed from
general bond issues, 30% out of

ments whose

acumulated funds, 22% with rev¬

bonds,

enue

and

taxes,

11% from current
the remainder from

1, 1951.
Bidder may
single or a combination

Authority

award,

expecta¬

the

will :be

Angeles?/Undertaking
equally well received.

;

"

Reserves and Bond Issues

Public

Improvements

cities

will finance

/

more

public works Improvements from
cash reserves than from any other
single revenue source during 1946,
with general bonds and revenue
second

bonds

tively

as

third

and

respec¬

methods of financing, the
City Manager's As¬

International

sociation

such

plants

Mont.,
Tex.,
Ocala, Fla.; St. JosepH and
Mt. Pleasant, Mich., will rely on
current tax revenues to pay for
their sewage disposal plants.
: L;
Jacksonville

Bozeman,

in

and Kerrville,

and

Small Cities to Use'
For

bonds Will be used to build

enue

tion is that the forthcoming Los

the

prior ' to
March
1,
1956,
only
through the operation of the sink¬
ing fund.
Redemption prices de¬

91

•

ects will be financed by a com¬

reports.

The Association

:

Light and power plants, incin¬
erators, and airports make up the
remainder of the utility improve¬
ments

scheduled for early

con¬

struction.

Sixty per cent of the
electric' power
plants
will
be
built or enlarged out of utility
reserves, while 15% will be fi¬
nanced
through revenue bonds.
Incinerators will be built in 14

cities,

from

principally

J
?

accumur

points out that
the large number of utility proj¬
ects planned for
1946 probably

lated funds with four financed by

accounts for this reliance

ects

reserves

which

were

on

cash

built up

dur¬

ing the war*
A survey

cities

,

of the plans of small

between

5,000

and

10,000

population indicated that 113, or
30% of the 369 cities reporting on
a
method of financing will use
cash

reserves

to fiance their proj-

ects.

Seventy-one cities intend to is¬
sue

general bonds, 48 will issue
bonds, and 28 will use
tax revenues. "Only two

general bond issue.

Airport proj¬

reported by 21 cities with
financing almost equally divided
between revenue bonds, accumu¬
lated funds, and general bonds.;.?
are

Ohio Municipal
Index

Bond

Again Advances

J. A. White

&

Co., Cincinnati,

further strengthening
in the Ohio municipal market for
the week ended Feb. 14, stated
that the firm's index of the yield

reporting

a

revenue

on

20 Ohio bonds rose from 1.18%

current

to

1.17% during the period.

cities will levy

special assessments

indices

for

10

•

grade bonds rose "

similarly from yields of 1.04% and
1.32%, respectively, to 1.03% and
1.31%.
'
ii
4
'

-

will find

intelligent, willing, American-born, Englishspeaking workers. These friendly people are
among

Industrial

Henry Wells to Staff

Georgia's greatest industrial assets.

Write

Development

Donald MacKinnon &

Division

GEORGIA POWER COM PANY, Atlanta,

eral

Georgia.

Motors

;

Co., Gen¬

Building, New York

City, specialists in United States
Government, state and municipal

bonds,

announce

Henry

that

Grady Wells Jr. is now associated
with

&mf(A &
,.U

INVESTMENT

Other Leading

been in the

since

Exchange and

the
Future in

GEORGIA



Private Wires

•

in

&'

municipkl

its

Mr. Wells has

municipal bond field

with

first
Co.

and

Graham,

later

with

Harris Trust and Savings Bank.

'

f

Exchanges

INVESTMENT SECURITIES
BROKERS OF BONDS,

1936,

Parsons

Pepy Sturnagle Rejoins

UNDERWRITERS AND DISTRIBUTORS OF

PLANT

firm

bond department.

BANKERS

Members New York Stock

the

STOCKS, COMMODITIES

Home Office: Atlanta

•

Staff of Strauss Bros.
:

Phone LD-159

'Pepy Sturnagle will again be¬
come

associated

with

-Strauss

Broadway,

New York

City, .in their trading

department,

Bros.,

32

,

The
high grade bonds

and for 10 lower

available in many

small, friendly Georgia towns where no large
industries

a

Small

by maturity.

to

sew¬

special asessments or utility re¬
serves plus state aid. For example,
general bonds will pay for sewage
of interest rates on the issue.
:J:
1
disposal plants in? Waynesboro,
;
In view of the spectacular
Va.;
Woodward
and /Duncan,
success
that attended the Port
Okla.; and Pittsburg, Calif. Rev¬
name

sinking-fund, com¬
mencing in, 1950, sufficient to re¬
the

?

March

to

.

a

i

public

current tax levies. A few

1947

redemption

the

financing

the

of them will be subject

none

to optional

to 1.53%.
This
speedily placed with
price of par, which
contrasts
with
the
reoffering
price of 98.25 set for the Current

the day of the award.

in

and

a

breath

rise

of

»

to

will

reserves

of

eral bond issues, and

mature

1 from

of

18% will be financed from

;

and

1946

kinds

projects for which the

for

average

Outstanding funded debt of the
Port Authority, giving effect to
the present financing, is
$187,877,000 of which $180,377,000 com¬
prises
general
a n d
refunding
bonds.
All general and refunding
bonds are equally secured by a
pledge of the net"revenues of the
George Washington Bridge, the
Holland/ Tunnel,
the
Bayonne
Bridge, the Arthur Kill Bridges
(Outerbridge Crossing and Goethals Bridge), the Lincoln Tunnel

the f

March 5.

The bonds iwill be

1,

was

investors at

eigh, North Carolina, testify to the

on

available

Angeles Offering

March

terms which reduced the actual

and 100% thereafter to maturity.

of

on

April, 1945, when an issue of
$12,000,000 l%s, maturing in 1985,
was sold to a Blyth & Co. account

000 before the close of business

and Ral¬

revenue

various

Cash

ing revenue bonds. This loan will
also be disposed of via competi¬
tive
bidding, and bids will be
opened at 10 a.m. (Pacific time)

fund.
The
lowest
previous interest
cost on Port Authority long-term
was
established
in
borrowing

interest

net

C

general bonds.

or

including water and

49%

$13,215,952

Authority financ¬
ing now completed, syndicates are
now being organized for the pur¬
pose of competing for the biggest
revenue offering now facing
the
market, the $19,750,000 Los An¬
geles, Calif., Department of Water
and Power electric plant refund¬

set forth in the sinking

offering

expense was

;

utilities and other utilities.?

age

With the Port

life of the loan for the purpose of

on

nancing
works

with

Large Revenue Issue

of

bonds, of the, new issue of $18,757,-

Rock, Arkansas,

Los

$18,394,-

net

a

ther

Terminal,

compared

bonds,

enue

balance of $9,471,359.

a

.-,?. /

Although

tire

from

Newark,;Birmingham,

for

99.219

of

1" V:

- r:

methods of financ¬

or more

ing will be used by 63 cities, the
more frequent combination
being I
reserves plus current taxes, rev¬

debt service $14,344,445, leaving

1.406%. Final offer of 98.056 for
$18,612,000 bonds, or a net cost
of 1.453%» was entered by Harriman Ripley & Co., Inc., and

They

City of Cleveland 5Y2S, 1964, and

obligations

the

agency

pre-eminent po¬

period covered
by the survey, such sweeping ad¬
vances
as
nearly 80 points for

the

authority

Jersey

market. ;vv ?....

Over the entire

Detroit,

Cullman,

to have achieved, at the

present time,
sition

S.

bonds. " Thus

York-New

'

opinion of

in the
a

fi¬

Authority

Howard

New

for

and

determining the net interest cost
was mutually agreed upon by the
contesting groups as 25 years, in
view of the redemption schedule

or

gains

of

bonds,

Associates.

refunding

lar

I year.

tender

a

revenue,

revenues

$19,116,481

general

in third position, with

bonds,
eleventh
series, awarded on Tuesday to a
syndicate headed by Blyth & Co.,
Inc., New York.
The group, out¬
bidding three other accounts which
sought the loan, purchased the
bonds at iy4S, at a price of 97.30,
representing a net interest cost to
the authority of 1.358%, based on
an average life of 25 years.
and

,;City of Detroit 3%s, 1962, State

| up 4 points or more during the

was

of

depend upon fed¬

state aid.

Two

Of interest to city officials are
the methods cities will use in fi¬

Authority

operating

gross

three will
or

$17,557,509 in 1944; net operat¬
ing revenue after operating and

ing named by the Mellon Secu¬
rities Corp. and Associates.
A
tion

Port

and

eral

rate

a coupon

slated

also establishes

similar

. <

The terms not only reflected a

1960, and
1963, all

specified

ity achieved a record low interest
cost for the $18,757,000 general

»7% points, and such others as
I City
of Philadelphia 4s, 1966,

Galveston 5s,

of

acquisition of the Port Authority
Grain Terminal, and $304,000 for
improvements to the terminal.

The Port of New York Author¬

Chairman

City of

.

Record Low Interest Cost

'State of Arkansas 3%s, 1962, up

of Los Angeles, 4%s,

State

Ilalsey, Stuart & Co., combina¬

pur¬

Port

the

repay

of

New York in connection with the

000

new

i

for

records.

Water
District
(3%s, 1981, both up 8% points,

4s,

insur¬

of investment compariappraisals,
and
price

had

the

Port Authority Grain

1%%, with the second high
bid
of
99.55
for
$18,333,000
bonds, or a 1.393% net cost, be¬

and other in¬

reference

valuable

a

poses

to

1945

exclusive

$2,350,000 for additional improve¬
ments
to
the
Holland Tunnel;
$1,623,000

No.

In

of

and is regarded as.

the country

J Metropolitan

Rhode Island

dis¬

vesting^ institutions throughout

iYork Rapid Transit 3s, 1980, and

of

banks,

among

with $14,000,000

being employed in the redemption
of
outstanding
series H notes;

bidders

companies,

ance

.

Each of the three unsuccessful

from 5.18%.
The tabulation is widely

minal

are

various purposes,

1.16%

declined to

yield

average

publicly outstanding and one
or
more
pivotal issues of cities
jor counties breach State,
y •
J During the period covered by
this survey, state and municipal

to 134% at

t".'

1933

debt

prices, as measured b,y an aver¬
age of approximately 100 bonds
maturing in from 10 to 25 years,
rose from 90% in December 1933

depression year

since the

prices

Port

Authority Inland Ter¬
1
(Port : Authority
Building),
the / Port
Authority
Grain Terminal and any additional
facilities which may be financed
by the issue of general and re¬
funding bonds.
*

March .1,

mature

not redeemable prior
to March 1, 1951. ,,
.
The $18,250,581 derived in this
latest financing operation will be
used by the Port Authority for
1986, and

V,The

and

pride1 to investors "was 98.25

ing
and

Thursday, February 21, 1946

after several years

leave.

Volume

THE COMMERCIAL &

Number 4466

163

The Annual

(Continued from page 960)
The SEC proxy rules gov¬

erning the solicitation of proxies.
! : ' (3) The increasing cooperation
and

more

now

seeing

more

managements

it

to

that

meetings

accessible

locations

are

held

and

at convenient times to insure

in

that they will become public for¬
ums, • and not merely dry legal

gatherings.
!•'

(4) The sending
meeting reports.; ;

out %of

hV

post-

:

\

:

-

The Work of the Pioneers

.

take up these fac¬
It was in the days

now

tors seriatim:
of

the

great

depression

of

tne

thirties that the champions of the
new.

capitalism first began to be

noted

at

annual

adopted the viewpoint that
place ■ where the executive

business

of

the

technical reasons, this is not
practical, several managements of

large corporations have adopted
the policy of having the share¬
holders

to

conveyed

from

the

by

of

means

executive

offices

the

meeting place. - V Notice
of
the
management
offer
of
transportation is carried in the
*

notice and all wish¬
ing to attend and accept the offer
are requested to
inform the Sec¬
retary .of the Corporation.
The
result, of course, has been to bring
about gatherings of hundreds of
stockholders

in

publicity

ion

"socialistic '

has

phased
defenders of
were

seekers

or

the

merely

or

leanings.'

some

with

men

,.\

old

,

,

order

r

%

t

-

Nor

were,:they to be intimi¬
dated by steam roller
methods
those in charge of the
meetings
tried to employ.
They demanded
the right to know what had taken
place during the year; they insisted

on

seeing the lists of the stock¬

holders to find out who

their

were

fellpw-shareholders and especi¬
ally what amount of stock- those
•

who directed the

.

enterprises held,

/They began offering suggestions
as to policies and
improvements-—
their right as collective owners of
the enterprise; they did not hesi¬
tate to/diScuss.
bonus, .salary^ •op¬

y

tion and
until

pension questions which

then

had

been

reason

for

absurd

some

considered

confi¬

as

dential information and not to be

discussed by

mortals. / And

mere

ijso, slowly but surely

many of the
expressed at; first from the

ideas

floor of the

meetings began to be

incorporated
policies.- ..

■

Fully
by

cognizant
and

more*

/ for full

of

-

the

•-

.:

stockholders

more

disclosure of

the

affairs

issues to be presented by both
management and investors having

on

connection

with the

discussion; that is a matter
entirely in the hands of the share¬
What it has undertaken

that all pertinent
the voters;

see

is

given

that adequate space for a "Yes"
i or "No" vote is on the ballot, and

that

in

the

of

case

independent

proposals space therefor be allotted 4n> the corporation proxy

is paid for by

remembered,

corporation and not by the

the

man-

The

4 agement.

reasons
for the
introduction of the proposed reso¬

lution

by-law

or

amendments

be briefly listed.

may

This

the mind

evidences

the

advantage / of
collective
questioning over the old style
private questioning of corporate
officials.
The latter, of course, is
and should be used for lengthy
questioning of a specific nature,
but for general questions there is
no
better place than the demo?
great

cratic forum of the. annual meet¬

ing./;:
.

problem

step taken to solve the

of

y

accessible

large

betide

began

to /. come

oppo¬

eVer-increasing
of

of

minority proposals even when disaproved of by management.
The
;net result has been to make

for

agement
of

the

the

first

man¬

time

con-

potent force of the

stockholders of the country. These

large

minority

most

managements

votes

have

made

desirous

of

cooperating with the stockholders
and

they

try

now

reasonable

to

prooosals

This avoids needless
the

same

v

meet

any

advanced.

ballotting

on

issues each year.

One of the issues which the in¬

dependent Stockholders have b'een
the

insistent

meetings

venient
As

a

on,

take

and

has

been

nlace

accessible

yardstick,

difficulties of the

as associates of the firm.

turned

perceptible.

/

; /

/

service

who

resented

the

by

house

is

now

1,

New York

not

City.

"

-

which

are

steps to
taken.

insuring

the

C i t y

Company
from

1928

*

who

The

National

Bank
1933

W.

A.

Forrester, Jr.

to

the present time.

In the years

ahead further gradual

insure this

goal will be

Willard York

A maximum of good will

own

to

1933, and with

//z/Z///. City,

.;

and/understanding by

want

the

-

Na¬

tional

associated with M. A.

methods of reform.

corporate democracy at the ananual meeting have not yet been
jsolved.7 No one should forget that
Americans

Mr.
was

from

generally
of

problems

ef¬

1946.

with The

Schapiro & Co., Inc., 1 Wall Street.

equally

fjpf

fective March

ly connected with Lazard; Freres
& Co. is

-

de¬

partment,

the
\

the

entirely
unjustified,
boomerang.

tionary

charge of
office.

j Kadelburg With Schapiro

resort to steamroller tactics, when

the

buying

Comdr

/"/;/ [' Howard T. Kadelburg, previous¬

independently
stockholders,
who
are
making the annual meeting
yearly habit and attempts to

All

in

in

Forrester

now

i

is

x-

charge of the

Counsel

America.

E

change,

Navy; is Presi¬

Investment
of

Stock

of active

years

firm's Philadelphia

minded

a

the

the

Waterworth

reasonable discussion of the busi¬

before

with

of

Association

On the other hand/any attempts
by the chan/or "company" stock¬
holders to suppress legitimate and
ness

four

dent

No chairman

f

after

members of
the New York

re¬

Comdr. Rose, who recently

;

Co, 44 Wall

York

V.'/

/

the

all: those

York

commonly-owned

corporation—no longer the

Opens Branch

HARLINGEN, TEX.
Company,

vestment

mon¬

Willard

—

San Antonio in¬

firm, | has

opened

to

a
conclusion,
again be resumed.

//.:/

/

•--

insure

evolu¬

branch office at 210 East Harrison

Street- under The

■t

"I

the
.-••

continued/
v

..

"

••

i

of

success

management of

"

the American industrial system.

revolutionary

Rexford P. Olson.

•

$18,757,000

The Port of New York Authority

j

|; ;-The:Post-Meeting:Reportz

-j
Even* the most afccessible meet¬

ing place however

the

that

in

only result
in the gathering together of sev¬
eral

hundreds

and

of

the

of

some

large corporations.

Realizing, fully

;

thousands

shareholders in

of

;'/

:

that

this

con¬

Dated March

.

-

/-•v'"V.

'•

:/

//

/V.1

s.

'

IV

/

••

?•

ir

3; 'r

.

'n<. \

v, I

,1

.v

'

l'

prior
'

V

*

March I; I95I;

to

"1*

1

-

»

7

*!' r.* 7 <

T*

J9°6

*
}

7'.-*

n

.

-

Payments will be made into the Eleventh Series Sinking Fund commencing in 1950 at a rate or rates which
cumulative basis will be sufficient to retire all Eleventh Series Bonds by maturity,

was

,

s

on a

or

geographical

..

MANUFACTURERS TRUST COMPANY, NEW YORK, Paying Agent
CITY BANK FARMERS TRUST

reasons

COMPANY,NEW YORK, Registrar

Interest exempt,

horns and boldly began the prac¬

Exempt, in the opinion of General Counsel and Bond Counsel for the Port of New York Authority,
from any and all taxation, (except estate, inheritance and
gift taxes) now or here- - 1 - ;
after imposed by the States, of New York or New Jersey.

tice of

sending a complete, factual,
and impartial report of what took
place to. all the stockholders of
the

corporation.

Omitted

were

cmly irrelevant discussion/unpar¬
liamentary language, and similar
material,! which have no place in a
report of this kind.
A number of other

have

since
has

corporations

followed

Si

this

man

For information relating to the Pdrt

.

made

to

of New York Authority and to these General and Refunding Bonds, reference is

the

in the street

Blyth & Co., hie*

-

of

post-meeting

report

and

to

;

;

meetings where the management
still opposes this step, floor fights
the alleged issue of a free
corporate press will take place.

Phelps, Fenn & Co.

Paine, Webber, Jackson & Curtis

Probably
another
reason
for
increasing popularity of these
reports, not only from the stock¬
holder's viewpoint but from man¬
agement's as well, is that they act
as a
checkup on the type of views

R. W.

the

floor.

After

Stone & Webster Securities Corporation

A. G. Becker &
Incorporated

Coi/ /

Alex. Brown & Sons //
•

*

■

'

'

'

•

*-..7-

'

'•'•■•••

I

from

see

the

letters

/

v

Riter & Co.

just

should-

be

how

'given

much

opinions

expressed.
becomes an

excellent

were

it

t

*

', *

o

■

*;

*■*1

** *.« * • r f' ,1J '!; z.1

In

i

other

$. j

-

Equitable Securities Corporation

v

J. S. Rippel & Co.

Eldredge & Co.

Yarnall & Co.

Hannahs, Ballin & Lee

Incorporated

Gregory & Son

Bacon, Stevenson & Co.

Field| Richards & Co.
20,

1946.

,

Hemphill, Noyes & Co.

Hayden, Miller & Co.

Incorporated

February

,,'/•/

E
-

k

*

Boland. Saffin & Co.
:

.

.

y

^

*

■

i

Moseley & Co.

//,.)

R. H. Moulton & Company

•

weight

the

'

/ :•/'

.

cqming

to it from those who received the

report,

;

,

F. S

7.(Dominick & Dominick
Geo. B. Gibbons & Company 7//Z

#

Whiting, Weeks & Stubbs i

post-

/. Incorporated

|:-;7Incorporated

Chair is only expressing his indi¬
vidual viewpoint; but when it is
the

■/;•;■

;

L. F. Rothschild & Co.

/

I Chas. Ei Weigold & Co.
j

.

Baker, Weeks & Harden

meeting report, the management

Goldman, Sachs & Co.

Harris, Hall & Company

/

; (Incorporated)

Pressprich & Co. //

ail, the stockholder addressing the

can

* -

Z/-//

the

from

*

other

at

over

expressed

under existing statutes,

Official Statement of The Port of New York Authority (dated February 15, 19,46) which should be read
■prior to any purchase, of these Bonds. Copies of such Official Statement maybe obtainedfrom only such of the under/;
'
writers as are qualified to act as dealers in securities in this State, :

This

stockholders

taxes

Price 98%% and accrued interest

with

met

first time stockholder reports and
business
are
discussed
in/ the

the

in the opinion of Counsel, from Federal Incortie
regulations and court decisions.

Legal in the opinion of counsel, for investment in jVew York and New Jersey for state and municipal
officers, banks and savings'banks, insurance companies, trustees and other fiduci aries, and eligible
/for deposit with state or municipal officers or agencies in New York and New
Jersey for any purpose
for which bonds of such States,
respectively, may be deposited. ;
'

policy,
increasing
stockholder favor, because for the
which

words

-Jt:

t.•

/Due March I,,

Not redeemable

Our

f .' *.v

//•

sions of their corporation's affairs,
one of the largest American cor¬
porations took the bull by the

which




/rv!//

1^1946

patently unfair to those who for
business

stockholders
I

;

Eleventh Series, 11/4% Due 1986

thousands

of

hundreds

even

locations.

I

General and Refunding Bonds/

iV-vJ/

can

a

opoly of the few*—will doimuch to

.New Issue?

period come
this- trend will

of

Street,.. N e w
City,

Waterworth

.

USNR, have resumed their duties

makes its impatience clearly

soon

A.

war

.'.-S«•»-*&
.*/■;•

stockholder

Harold

into • increased
favor—and deservedly so.
It is to
be expected that as transportation

printed and carried in

Location of the Meeting

most

the

Hinton, A. A. F.; Lieut. Comdr.
' S.
Nichols, /USNR,
ano

partner

>

kind

to

votes
of hundreds
thousands of shares in favor

•V scious

not

property.

common

&

Comdr.

has to attempt to make the stock¬
holder desist; the/meeting itself

year, Once again, a goodly
number of other corporations will
start the program of sending some

minority

.

Woe

their,

wanders far afield.

vided by the supplemental region¬
al meeting which in pre-war days

proposals
.

of

tion

become a general
Lazard Freres

John

localities

sition to controversial
managerial
•

facts

partner

has

Vice-President of The

as

whereby stockholders may" collect
tively meet for discussion is pro¬

language of the

,

All:this has resulted: in
minority votes recorded in
and

the

general

a

Forrester, Jr.,

W.

lengthy speeches.
They are con¬
cerned with the affairs of their
corporation, not the affairs of the
nation, except as they are imme¬
diately related to the administra¬

imost

/ Another

The latter, it must be

statement.

to

as

resigned

A.

of the firm and that Lieut. Robert

Oratory is discouraged—whether
the left pr of the right. / The
want

•}

readmitted

Of

stockholders

i

National City Bank of New York

the

holders themselves prevent abuse
of their newly found privileges.

could not attend and yet were in¬

for

,

another.

to

come

of

and it is
interesting to note how the stock¬

terested/in' -followingthediscus¬

proper, never takes sides as
to the. merits of the proposals
up

information

of

stockholder

one

The

as

and

to do is to

to

right

governing this voting.

Commission; of course;

holders.

occur

which will not

manage¬

ment, the Securities and Exchange
Commission' promulgated certain
rules

tions will

desire

'

of their
corporations, so that in¬
telligent voting might take place

no

helped to quicken general in¬
terest in the meetings, since ques¬

calibre

•

William

,,

The SEC Reforms

\

:

into / management
•••V;.
^

heard from the floor and

are

the

Join Lazard Freres

Brundage,
Story
and
Rose,
New York City, investment coun¬
sellors,
announce
that
Comdr.
Dwight C. Rose, USNR, has been

stockholders ; meeting

improve

W. A. Forrester to

r

Story, Rose

>,

" 7 Z///' /•'"

These reforms have done much
to

Where

here

the

not

the stockholder

stockholders should meet.
for

who persisted in the delusion that

were

They
worried, by
.

-

is
transacted ■is the place where the

place of the pro¬
verbial handful of prior years.
This has naturally done much
to insure that all shades of opin¬

meetings.

Gallup-Poll "of
opinion.
'

corporation

official proxy

'

We will

the

buses

'

*

,

have

977

Four Rejoin Staff of

Meeting—A Democratic Forum

(2)

of

FINANCIAL CHRONICLE

THE COMMERCIAL & FINANCIAL CHRONICLE

Bank and Insurance Stocks

(Continued from first page)

*

not

an early
Lord Halifax's reports are

this year, despite the favorable

reports presented to stockholders at

the annual meetings in January.

measured

1.6%,

stocks,

Banker Index, > they have declined

the American

by

the

with

compared

measured by the Dow Jones Industrial Average,

as

the market action of 17 leading New

The following table shows

bank stocks, from Dec. 31, 1945 to Feb. 13, 1946.:. .Their

York City

Five of the 17, however, have shown

decline has been 2.3%.

average

appreciation, viz: Bankers Trust, Continental Bank & Trust,

moderate

Corn Exchange,

Manufacturers Trust and New York Trust.
'••'( /

:•

/v/v///,/'' !//■'

Manhattan_J__„—-i—

Bank

of

New

Bankers

York-./.-//,.../—

Trust

Central
Chase

Corn

Bank

■t

Trust——

375

:.

City

Trust_______—————i_—-

York

New

National

Public

Bank

-

+1-2":
—4.6'

116%

48 %

•

'—2.4
/

..

"

.116%

:

Trtist

&

/.

•.

:

.48 /

—1.5

5

„

Average

of 17—

-

Jones

Dow

Industrial

/ Asked

-

'• V

"

v

vr.

-

.

('

,

Bank

Divi¬

Earnings
12-31-45 ;/ >l945
/

Rate

>

Value

2-13-46

34++;.

Manhattan..

of

'.Net Oper.

Book

i

•

/

Price

■,[V: - >

$3.12

-

$30.26

Bank

of

Trust

;i

,

&

Commercial

Nat.

B.

Contihental

Bk.

:

*

"

'

33.31

47.77

-

:!

8.79

40.57

2.30
3.07

T.

51%

54.82

4.57

&

23%

Tr._

Corn ; Exchange

0

First

1,970

National

>

"

22.67

>:

65%

53.34

Irving

Public

Nat'l

United

!

.

Trust
Bk.

States

—

i/-

0.93

1.60

'/

80.00

1.77

;

2.40

&

Fire

1.07 ''
0.93

6.4
8.1

49%

44.59

'2.84

>/ 99.82

,;7.94

i

;

1.60

'3.2/

5.8

I.IO •

1.17

4.00

'

,6.8//

3.4

48.89

4.76

1.50

0.98

9.9

3.1

767.74

•; 46.42

35.00

406

:• 5.7'

4.3

48

8i0

/

;.

/ .v -:-.' ;

/

.<

ITu ■
is

table

second

3.5%

7.0%

appended

which
shows' book-values, .met
operating earnings (exclusive of
security profits and recoveries)
and current annual dividend rates,

in

relation

to

current

market

prices.
are

selling at

a pre¬

mium to book

;/

value, the average
1.11. .Commercial,
Irving and Public are priced at a

ratio

)!.'•'!-■

being

moderate,

discount

from

book

value.

Members New York Stock

Exchange
other leading exchanges

3.5%, ranging from

3.0%

Telephone DIgby 4-2S2S

a

low of

for Bank of New York to

4.3%

for

United

States

Trust.

Average earning yield ; is 7.0%,

19 N. Y. CITY

/

NEW JERSEY

: U. S. GOV'T BONDS

!; by maturity categories -V>-

shows

that

all: keen

that

Sterling Area
not

are

tion

*

of

to

of. f ear§ of
wood

the

amount of

post-war balances
unduly large, holders would
be willing under such a scheme to
is not

reduced/in spite: /.K.
anti-British Holly-1/
;;

propaganda that might1

suit from antagonizing

is likely to

yield much

i

V It is of interest to compare the

3.5%/ yield ; with that-/of/ high
grade corporate bonds, as quoted
by Standard & Poor, as follows:
;

Federal

Reserve

industrial

and

Industrial

2.42%

agricultural

.

2.75%

2.51%

1

2.97

3.25

2.79

to remain

the

loans

at

bank
in

lies

earnings

the, dollar reserve; is

likely to dwindle down to
is brought to bear on the

the

fact

that

the

rate

return

is

ities).

higher

For

such

on

example,

loans

its freedom of action

loans in 1945

the present basis of

peak

new

on

reporting. The

vs.

ities. / Chase

total

loans

increase since August 15 is $712,-

1.09%

Trust, 1.75%

equivalent

to

approxi¬

mately 32.5%.

on

Reports of member banks for
101

cities

show

on

reported

and

000,000,

1.29%

1,26%

on

investments

vs.

Governments,'

on

on

Governments, and

change, "2.79%

on

Irving

loans vs. .1,42%

torn

aiming

with 1.62% on Governments.

to

The significance of this
upward

commercial

some

will

the

the

prospects

is

Cabinet,

or

of ratification

might become

to resist.

■

Now Zimmerman & Co*
Prankard

&

Zimmermann,

ac¬

countants and auditors, announce,
that

the

firm

has

name

been

2

changed to Zimmermann & Com¬

Harry I. Prankard,

pany.

2nd,

has withdrawn from the firm*

Australia and New Zealand

BANicOF
NEW SOUTH WALES

be

-

time.

(ESTABLISHED 1817) (

Pald-Up Capital

.£8,780,000,

Reserve

Fund

Reserve

BANK OF AMERICA

Request

A

Liability of Prop.^ 8,780,000

6,150,000

' /' -/>;
/Aggregate Assets 30th '
; Sept., 1945 .—.—>£223,163,622
/j,,

ARDEN FARMS COMPANY

J. S. Rippel & Co.
Established

BROADWAY, NEW YORK 5, N. Y.

If KERN

COUNTY LAND

COMPANY!!//!

//v! (Prcferreds)

.v'.

/

V'

throughout the U.

Insurance & Bank Stocks
ANALYZED

—

Sold

—

Trading daily 7

a.

m.

Inquiries invited.

to 5 p. m.

;

CALIFORNIA

West 7th

-

Chicago

TELETYPE

L.




-

A.

Oakland

279

-

L.

A.

280

-

Seattle

San

In India, Burma,
Colony and Aden and

Spring Street

TUcker 3151

Teletype SF 431

WIRES

San Francisco

650 South

YUkon 1551

.

26, Bishopsgate,
London, E. C.

Branches

Montgomery Street

LOS ANGELES 14

St., Los Angeles

PRIVATE
New York

.

the Government in

Office:

INVESTMENT SECURITIES

v

SAN FRANCISCO 20

BUTLER-HUFF & CO.
210

Head

*

to

Kenya Colony and Uganda

INCORPORATED

300

OF

Bankers

First-California Company

(P. C. T.)

Orders solicited.

:/

S. A.

of INDIA, LIMITED

COMPARED

-

Special Bulletin and Booklet Service to Dealers & Brokers

Diego

-

.

:

—£2,000,000

Paid-Up

Capital
Fund—

£2,200,000

conducts
every
banking and exchange

description
business

Teletype LA 533

Stockton

Beverly Hills

Kenya

Zanzibar

Subscribed Capital_.u_£4,000,000

The

San Jose

Ceylon,

Reserve

432
■;

I<ong Beach

Fresno

Reno, Nevada

Santa Ana

Monterey
Pasadena

Sacramento
,

/
•

1

NATIONAL BANK

Quoted'

REVIEWED

-

Berkeley Square, W.

Agency arrangements with Banks

SAN DIEGO GAS AND ELECTRIC COMPANY

Bought

•/./•

t

29 Threadneedle Street, E. C. 2

/;

47

! /"

•

Manager./',

George Street, SYDNEY

;/';:///• LONDON OFFICES:

PACIFIC GAS AND ELECTRIC COMPANY

N. Y. Phone—REctor 2-4383

Gibbs, Manager Trading Department)

Head Office:

1891

BAKER HEFFER,

General

.

MArket 3-3430

Teletype—NY 1-1248-49

THOMAS

KAISER-FRAZER CORPORATION

18 Clinton St., Newark 2, N. J,

Telephone: BArclay 7-3500

A.

'

the

difficult

t

on

Members New York Stock Exchange

BeU

which is

pressure,

£23,710,000

Laird, Bissell & Meeds
180

ratified
Un-;

two.

also from within

supported

BANK STOCKS

OF GROSS INCOME
Circular

■

re-*

Washington

it

within the next month

the prob¬

borrowings

sustained for

denounce

agreement unless

ability; that this upward trend in

Indications, point to

safe-

at

Ex¬

loans compared

similar trend,
though their increase/in commer¬
a

.

tbe*';

serVe/ The Government is pressed

on

secur¬

/:

to;

.

guarding its foreign exchange

Banker's

totaled

a

Govern^/

Sterling Area and other bilateral/

Government loans (secur¬

on

Trust reported earning 1.70%

ruary

of

than

$2,186,000,000 on August 15,
1945; On January 2, 1946 they

$2,830,000,000 and on Feb¬
13,
1946,
$2,898,000,000,

most;

a

ment,^therefore, to induce itv to.*

improve/ this

so far
concerned,

!
"

inadequate; level/! Strong pressure [ V

3.02

loans/

are

:,

formidable/and before

summer

less

2.90

/

3.29

;.

trend in commercial
as

<'

2.63

; 2.84 /.

member

Utilities'

/Rails

.

2.55.«

-

banks reported total commercial,

dol-*,

more

than the amount spent/on it;r*T
Even2 allowing for these meas-r
/ y
ures/the dollar deficit is expected',, //;,
-

recover

,3.09

It is* significant that since V-J
Day there has been a steady rise
in commercial borrowings.- New

•
>

lars

make/arrangements, within

v

3.02
i

re//;;.:

Hollywood.* ;

The reduction of British

increase

Rating:
■
|
Composite
A1-+:: 2.58%

—

•

'</

be

an

ain would; be able to pay

ing earnings, exclusive of security
profits, is 2.0.

; / BI+

>■

.

jin.

2.75'

:

purchases/ ;'
is; still on- the increase/ holders are Of American' tobacco and oil iis/; :;
^
becoming /rporeT and /mbre-reluc? also" under
cbn^ideratibh//Tray+11a
'iani; to/increaset^heir/
ing' abroad will be"iforbidden,.-ex-.t.^f
/I Ing the: absence of the Loan cept in instances when the journey*.

dividend coverage by net operat¬

■

Agreement;:

import of American films is'

expected

acquiring more ster¬
>110w and the dissolu¬
theSterling■> Area; / A1on

thqugK/jihe^tot^vbf ^uc4i: balances

average

A1

'

:

drastic measures in that direction/; ./
The

at

ling between

Bank, / and

the

;

..''v.;

•

so

Breakdown of Sources

t

L

-

cial loans, which have risen from
$5,949,000,000 to $7,342,000,000, is
approximately 23.5%.
■

BANKS];

Holdings

done

arrangements
which

pay-

not
be -ratified : for ;some///
months, and -may.,mot > be; ratified1
at all, the Government is under-G; ;//
stood % to
inteftd / to apply - some; / M

afford to release them in dol¬

ing/sterling balances

known to. be prepared to

which constitutes

Average annual dividend yield
is

NEW YORK S

Breakdown of

order

not

was

that it"seems that the

thejr holdings, and Brit¬
in ster¬
to safeguard their British' ling for a large part of her import

York

It will be observed that all but

-

./>!'.*'\'a'?mH/'

WALL ST.

are

of

long as it,
appeared as though1 ratification'
would be effected shortly.
Now;

Britain

as

3.7

+

This

Indeed, Britain is get¬
ting the worst of both worlds. Had
the negotiations broken down/ or Agreement/the Treasury would be
had Congress rejected the Agree/ im a position to - discriminate be¬
ment - outright,
the Government tween war and post-war balances.
would at least know how it'stands It could- block war-time balances,

ests

balance

will

circumstances

finance their; exports to Britain

it/"*;
1 •" '•■•••■*.>> y,
in which Britain:

way

defend, her

especially from the United States.

countries and other countries hold¬

/situation

measuresJtp /stop

-

.

.

by the delay and uncer¬
tainty of the ratification /could
hardly be exaggerated./ The Brit¬
ish
dollar
reserve
is dwindling
rapidly, and in the circumstances
the Government is unable; to'take

Import-Export

has to1

drastic curtailment of her imports,

autumn;! if lars. +It is hardly, surprising in the

the

she

indents during the transition period
pending ratification is through a:

apart from

blocked until such time

Agreementv will

gravity " of

and,

The only

./

cap

mediately, they would have to be

all/;//'%/%/r
The

down

worlds:

the amount released in dollars im¬

3.9

1.19

Bought—Sold—Quoted

and

3.2

2.40

«AuJW*)Cui^ek<&Co.
1

5.1"

0.80

:

V'-..

:

4;i

12.00

three stocks

...

5.0

1.32

Co.
;

the

scaled

be

both

benefit from

practice the impending
change is casting its; shadow be¬
fore itself.* Under the Agreement
the sterling balances will have to

American private exporting inter/

•3.7//

!

1.48

19.06

Tr

Average of 17 banks

f}i

3.4

7.6

8.3S

--

1.22'

/•»'■ 5.32

Manufacturing

;•

3.1

54.85

347.42

Russell

t

8.9

1.03

0.80

98.65

A

i

.:

22.08

_

_

can

whether

ratified before .the

the

3.5

116%

_.

;ed

3.5

6.6

20%

371.

Trust

City

York

New

5.2

/

: / 65 Va

Trust

Trust

Manufacturers
National

3.3

1.28

-/

:

Guaranty

3.3

3.0

-

v

the

in

loan,

of

face the disadvantages of the loan' '
without having derived so far any;; //v

months after;the ratification of the

'

5.43.

-

1,333.79

'

7.3

1.11

1.80

&

6.2

1.07 1

1.60

40.02

:■ 7.2 ~

1.14

of

and could make arrangements, ac¬ h hd ^
/m/a.lt^// "post/iwar f/ balances
cordingly. It would be possible to freely usable for the purchase' of
negotiate ; a f smaller /but / by v no British goods or' for transfers
means
inconsiderable loan with within the Sterling Area.
Since

3.5%

,9.2%,

1.06

H

4.00

5i%

45 ya

.

Divi¬

'Yield; Yield

1.12;

'

14.00
•1.80

3.39

112.63

H.; .*

Book ; Earning dend
Value

$1.20

Trust

—__

Bank

436.20
+.

120 %

National

Chase

54%

—

Hanover

Chemical

:

462

York

New

Bankers

+

Mkt. to

dend

'

Central

"■
3.0%/'

—1.6%

- v

II

TABLE

'i
•

49.9

198.74/

benefit

worst

Sterling Area ar¬
rangement//.Even though • under

the drain.

50.7 /

is
longer

Now according to- recent
Washington
reports - it
appears
possible that Congress will,, not
even begin the examination of the
Agreement till much later in-the
year.
As a reaction to the earlierunwarranted
optimism ,there /. is
now a wave of
pessimism border¬
ing on defeatism. It is now doubt-

really, effective

—8.6

"

«/

192.91

Averager-!;

*

•"

-.v

Index——vi

Banker

American

—...l—4-L-

,

810

■" 840' ;

the-full

?Nor

any

existence of the

March.-

v

•

United -States .TrustJ„__l^_J___l_-._:——_l—_— ;

As it is, she can now buy
\
sterling and has to spend ••/;/•
more
dollars in consequence infy'::
order to secure indispensable im- •/
ports.
Clearly, she is getting the' / /.
less for

the ratification would be'effected- the • Washington agreement /that
without amendment by the end of arrangement may continue for 1,2

caused

+1.2

position

a

derive

to

opposition to
the loan too seriously, and, is said
to have expressed the hope that

at

—1.1

20% ;
49%

chancesvof- ratification./

American

take

to

v

2.8..

*. +-6.0

65 %

/

" ' 51%

*

—----——

*■

65 V4

.Trust. '/ 21%
Trust /——11—-—-L64%

Irving

.+

surplus.

of

Britain-in

;//-2.8:'/

371 H*

-v

Manufacturers
National

itself

•

basis of this optimism. He sought
to reassure the Government'not

be

—6.0

■

1,970

2,095

Trust

Treasury

avail

to

of

dollars/ for fear
that to do so might antagonize
Congress and would prejudice the

—8.1

23%/

/

64 Mi

Exchange

/

.

—5.9

511/4

/.

.

+ 4.3

■

51V4

52%
22%

—3.3

•

45Va '*

.

54 %

//■

& .Trust__^-_^i-—^

Bank

&

•-

120 Mi:

.

//• 49 %

& Trust—

National

—3.2%
■

54 %
128.

'.L/l'

:

First "National*—J---- "

Guaranty

462

478/.

■r

—_—!

Chemical Bank

Continental

.

___—

Hanover

National

Commercial

35%

Change"

2-13-1946,
f 34 //

"

of

Per Cent

-Asked Price12-31-1945

Bank

industrial

advance of high;grade

3.0%

want

understood to have been the main

Bank stocks have been lagging

As

it' is' the

sources

,

Bank Stocks

—

As

does

such

date.;

This Week

inarkets.

■

mism concerning the alleged cer¬

tainty of ratification at

By E. A. VAN DEUSEN

=

!

Thursday, February 21, 1946

Bank

Trusteeships

and Executorships

also undertaken

of

;;

\

?''/•

Volume

163

Number 4466

THE COMMERCIAL & FINANCIAL CHRONICLE

Some Brass Tacks of
'

v

(Continued from first page)

about

what

I

think

Brass Tacks of

:

;

•

> You have

of

"Some

as

Banking."

one

darling
clothes

to go

the

of

but,

nation. ;■•'%•
•■•M
I think that it would be interest¬

ing to explore your batting
in banking,
'
To

•t

serve

great

your

and—as- I

swim,

few weeks ago—

a

their examiners may haye to get
some bathing suits and take some

economy,

in

lessons in swimming, in order that

they may better understand and
appraise what we are trying to do.

Banking Business Belongs to >
j
■

(your loans represent

17% of your
deposits, this is somewhat below

the' v country-wide
average
of
•18.54%;; In New York State the

of loans to deposits is
This, .however, includes

New York City, with a good many
out of state

how -to

visors of banks

aver¬

Ohio, the record
that you; have 681 banks,
■.with aggregate capital funds of
386 million dollars, aggregate de¬
posits of nearly $7,000,000,000, and
that you are lending, in the ag¬
gregate, about $1,250,000,000. Sinde

average

business, must learn
confidently into the waterin order to do so, we must

know

shows

23.4%.

limb, but
We, in

made bold to tell the state super¬

age

financially,

hickory

a

your

the banking

of tne great states
one of the out¬

states

on

bang

—

don't go near the water."

.."v;

of the union and

standing industrial

daughter

loans, which probably

distorts the figure from a compare
able point of view. ;
/
^

'<

.

Banks.

.

<

..

The

banking business of this
country belongs in the banks and
not in the government,
On June
30, 1945, the government ;;credit
agencies - were- lending "to
our
clients $5,544,000,000. On Septem¬
ber 30,; 1945, they were lending
$5,409,000,000. ; The
figure ; is
gradually coming down;; but not
rapidly enough./ We must keep

It i$ interesting to observe that
80% of your banks are lending to

government

agriculture

credit agencies with which we, in

'

Oyer the past twelve years our
has created some 45

for production and
requirements
of
its

operating
farmers, which
are

of the

privately chartered banking; have

you

-

been in active competition. At

competing

one

that

means

forthrightly with
aggressive gov¬
ernmental credit agencies which
we have, namely, the PCA.
quite

seem

to demonstrate

clearly that f these banks
the
agricultural
business

know

and believe in it.

Banking

It does stir the

of

job in amount as they might be
doing. This is truly banking at its
grass roots, not only: figuratively
but literally.
the banks
31%

or

hang around and

lending to 73,000
233,000 farmers in

the

PCA.

would

" TheT obvious

to be—are

seem

query

only 31%

farmers

represent

the

starving Armenia

n s.

agricultural production
vious

market

and

jias

needs

all

we can give to it—to
nothing of those of lis who

yet joined the WCTU.

Having grown up on the prairies
—and being one of the few bank¬
ers

in Wall Street who

and worked

ever

lived

with

which

to

order

of

the

President

only

-f

means

It will

serve us no

quietly and
desks

and

ments

in

Bank," etc.
rest

of

purpose

Credit

corre¬

have

partments of

our

We in banking must learn again
to stand on our "own feet in the

from

.

field of credit—to do

port in the making of the loan. If
this is not the case, you have the

correspondent banks and
should promptly get others
readily serve, you some

wrong
you

multiplication

tables in grammar school. What I

'

■

an

,

offer to buy any of these

offering is made only by the Prospectus,

NEW ISSUE

comfortably at our
publish: advertiser
;

charac¬

newspapers

The

offer to sell, nor a solicitation of art

securities. The

*

gation of safeguarding the deposits
of our customers is our obligation
to provide credit courageously and
wisely to deserving industry, r
I suggest that one of our most
prevalent faults today in banking
is "that we are too smug—that we,

,

This advertisement is neither
•'

courageous

very backbone of
chartered banking
system in this country consists of ,on many occasions, lack the pa¬
the correspondent banking rela¬ tience and the will to take a credit
tionships between the banks across request as presented to us, amithe country.
During the depres¬ drawing on our experience in ouir
sion and new deal days of deficit own business,—undertake to make
(Continued on page 981)
financing,;/; our banks were sur¬ [

banks any more

the

and

a

,

privately

our

than I would decry the education¬
al advantages of learning the al¬

phabet

""*?<

to sit

"The Neigh¬
"The Friendly

'•

50,000 Shares*

.VW'JV;*

J

'i\v

7,1

;

V"'7*'

v*..-,

i

v •

7

;

.'V *-'7

as

We must do

Iowa Power and

all the

as

Light Company

industry

in this country
has learned to do, and is doing-—
get out of our chairs and gd out

3.30% Cumulative Preferred Stock

and get the business.
A

yet

never

your

and

v.

Obligation to Provide

their experience they may be able, job, and also to do it intelligently.
Second only to our primary obli¬
to contribute as well as their sup¬

to

our

terising ourselves
borly Bank" or

a

to

banks

Bank's

and whole-heart¬
edly,, the benefit of whatever of

depreciate in
the educational advant¬
of ratios to the young fellows

ability-r-ahd

farm, and also
Definition of Bank Credit
having
joined \ the
Now, let us talk a little bit
WCTU, I feel, with some modesty,
about the subject of credit.
The
that I have some- understanding of
best definition of credit that I have
agriculture arid its requirements,
ever seen is "Man's faith in man."
In,my judgment, when* we are What
is faith? Faith is the corner¬
dealing with a farmer who knows stone
on which our forbears de¬
his business, we are in
partnership
veloped and built this great coun¬
on

stalwart people.

them promptly

I do not mean to

must have the talent—the

we

the courage to know how to deal
with such business.

help which
say

have not

them

the 28th day/of dast month,;"

so/

the

know, from

not in

experi¬

your... local

confidently

purpose.

One of the most

understandingthe

bb|

an

Chinese, who, on their own, as I
having lived in that
part of the world, are normally a

greater

or

to people on whom

one

spondent

by which we
do,jdecry i§ the idea, which many
can get the
banking business of
this country back into the banks,
where it belongs, is to go out,ag¬
gressively and get it, and, in doing

alcoholic supply to provide* food
for

and

starting to work in the credit de¬

The

jrisks

is

limit,

have a favorable judgment,
should be able to turn readily

ages

executive

a

Greeks, etc. in Europe, I think that

you

■

,

which

who will

on

potentially good bank credit

in < their > production;; and
operating endeavors.When you
ponder the fact that our govern¬
ment has just issued orders to di¬
vert some of the sources of our

cold water

compete went out of existence by

production that those other 69%
Ohio

you

any way :

difficult of

inclined to believe that in the
light of Ohio's great agricult11^!
the

spray

.

'am

lot of

ence/but

the government.

of the Ohio farmers good prOduCtion and operating credit risks? I

of

keeping with

to the amount of credit
be loaned under the cir¬

of the loan. '•

problem

everything within i reach in
efforts at self-perpetuation, as do
some
of these credit agencies of
over

Ohio, whereas only 9,000 or 4% of
the farmers were borrowing from
v

credit

than your lending

analogy ends at just that point. A cumstances with substantial ex¬
fire department goes home, pectation .that it will serve the
or back to the fire engine house borrower's purpose and that it. will
when the fire is out, and does not be repaid according. to .the terms

were

of the

made

real

inspiring to note that

human

.

loans—loans

the

of

.

imagination, however, to wonder ready when,* as and if a fire should lender as
if they are doing as aggressive a
break put. The trouble is that the which can

It is also

ter

without any
creation of each of
these agencies there was always mysterious waving of wands, but
based on the integrity of the bor¬
some" alleged
emergency
which
was used to justify it.
A govern- rower—his ^'khow-hdw" of. his
mentally minded individual, once business—the' "yvorthiness of- the
told me that these agencies stood proposed use of the credit—and
in the same position as a fire de¬ plain, honest, intelligent and cou¬
partment—They were there and rageous moral; judgment by the
time

most

This would

the

feited with deposits.
a mat¬
There was
judgment can be little that a bank could do for its
dealt with by ratios, any more correspondents other than to get
the * designing
highest standard of living on the than that
of a them theatre tickets and railway
face of the earth—a belief, not bridge can be dealt with by mul¬ transportation.
We must re-ener¬
only in ourselves, but a belief in tiplication tables or the alphabet. gize our correspondent banking
all of our fellow beings who are
It may well be that I do many relationships over the country ana
worthy of it.
things backwards.
Certainly, in make them virile and cooperative,
Now, as to faith in credit — dealing with the matter of credit, as they were over a period of so
basically it is that same kind of it has been my practice, for a long many years prior to the 1930's.
faith—that aame kind 0f belief— time, to first satisfy myself about
Vicious Effect of Government
in the people with whom we deal its basic factors—namely, integri¬
Loan-Guarantees
—first, that they are people of in¬ ty and "know-how"—before I be¬
tegrity and that they are people gin to explore the figures.
While on this subject of credit,
Re¬
who have a will to repay their ob¬ gardless of how
good the figures I must mention the vicious effect
ligations, and, secondly, that they are, dishonest or inept manage¬ of the government guarantees of
are people who have some "knowment can get you, as a lender into commercial loans.
During the era
how"
or
On the other hand, an of
war
understanding of the trouble.
production
there were
business or industry in which they honest competent management can many instances in which this was
are engaged.
Thirdly, our belief keep you out of trouble, without justified, to some degree. On the
that the uses.to which they will possessing
great
financial sub¬ other hand, there were very many
put the proceeds of the: credit stance.
instances where it was not just¬
which we'extend will serve the
Many of your banks, I know, are ified. This government guarantee
not large banks as expressed in of our commercial loans was one
economy of the community and of
the nation,
figures. You smaller banks, how¬ of > the greatest opiates which has
Therev are many people—and a ever, are the banks who are stand¬ ever been administered.
It dulled
lot of them are in the banking ing in the outposts—on the firing the thinking, weakened the moral
business—who have the idea that line.
You are the banks which, courage and sapped the aggres¬
credit is some kind of mystery. by reason of the relatively small siveness of many of our bankers.
There are also many people who size
of
You may not realize the fact that
your
communities
can,
believe that credit can.be deter¬ should, and in most cases, do know when the Japaneses moved into
mined/ by/the use of; a/ slide/rule well the human and moral char¬ China in strength, one of the first
and a lot of ratios.. I am proud to acteristics of the managers of busi¬ things they did was to develop the
ness
in your local areas.
say that I am not one of these. I
You opium habit on a great scale, for
very "strongly believe that there should, in that manager's eyes, be the obvious purpose of reducing
are. such .things as "horse* sense"
his banker.
When faced with a to subjection great numbers of the

have, that credit—which is

($100 Par Value)
'

s

>

„

t

'

v7 7

1

H

i

1 'v

")t'u "'A

£

«+v'

1

' v

v

'') ?if~*

.

>7

?

}> 1 4

&

i •

\

f

'

,,

*

'v*

1 '
*

"

%

'j

t

\

r''

;Y

•

v

! '

.

,

With the Lord.

ter partner.
down

on

I know of no bet¬

He will

never

let you

average.

I wonder if all of you are alert
to your opportunities in the field
of credit?
I wonder also if all of
you are truly alert to your obli¬
gation to the economy of this great
state?
\ v,
v,. I
am one of those who believe

*

•-

Subject to the prior right of the holders of the 7% and 6%
Cumulative Preferred Stocks of the Company to take; such
shares under the Exchange Offer of the Company on a share for
share basis plus a cash adjustment, as set forth in the Prospectus,

try of ours. Faith is that impelling
spiritual force which led over 11,-

000,000

members

forces to start at
in the late
serious

of
a

very

'.

Share

\(Plus accrued dividend),

•

low point

,

<;

^..'"V-'T:.-iV-S-va;'•.'

'

and turn the very

war

reverses

which

had

we

suffered pretty much all
world into

Price $101.50 per

armed

our

over

the

»

.

world-wide unques¬

a

.

that the
in

a

of sitting in a bank
frock coat and waiting for our
era

clients to

loan

-

come

from

in and try to get a

has

us,

passed.

definitely

/:V

■

must

use

the

soles

of

our

more

and

the

seats

of

our

y

trousers less.

.merchandise

We must go out and

credit, and, in
learn to be re¬
sourceful
enough to adjust our
credit methods
to
the require¬
ments of industry.
You all know the old story of
the
girl
who
asked,
"Mother,
doing

so,

mother,
The

our

must

may

mother

I

go in
replied,

to

swim?"

"Yes,




in

justifying
the casualties of 1,000,000 of our
degree,

some

manhood in this past war, it will
be because we shall have devel¬

.

-

^

'

'

v('

■:

■

-;

'

r

f

V, C. Langley & Co.

■

Hemphill, Noyes & Co.

my

them in great numbers to the last
full measure of devotion—the giv¬

ing of their lives.
thinkable that
belief

we

hearts and
own

an

rooted

souls—a

unconquer¬

in

our

belief

in

Hornblower & Weeks

<•

most

country,

V Paine, Webber; Jackson & Curtis

Blair & Co., Inc.

!

Quail & Co.

-

•

Metropolitan St. Louis Co.

very
our

belief in the pri¬
system,
which,
over many
years, had developed
in this country the greatest and
vate

#

It is just un¬
will not do this.

This faith must be
able

r

'■

Union Securities Corporation

oped the kind of faith which led

We

shoes

?

tioned military victory. If we suc¬
ceed inJ winning the .peace, arid

thus,

a

Priester & Co.

Maynard H, Murch & Co.

enterprise

successful economy and the

Vv

Copies of the Prospectus may be obtained Jrom such of the several Underwriters, including
K f the undersigned, as are registered dealers in securities in this State.' ' ,

February 19, 1946

-

'

<

■?;

Thursday, February 21, 1946

980

graphically what has happened to
-ne dollar since 1939.
It.is now

^ •; Vf

worth less tnan 75b,
No.

Reason

fact

that

held

the Line V

on

under

plies

inflation," writes Keystone Co. in the current
issue of Keynotes. "Evuy major war in our history has been accom¬
panied or followed by an inflationary rise in prices. /■,,
/ "And the causes are always the same—government deficit financ¬
ing, inflationary expansion of the money supply,rising costs of
production and shortages of;goods. /.••'■, ;■■■'/',:■!V/■
:

,"A11 these conditions are pres¬

ent today. In the past five years
the national debt has increased

520%; and the

supply has

money

150%.

increased

.

Wage and other

rising, and
shortages exist, in virtually every
type of consumer and durable
production

.

costs

arev

goods.
.

tnc

compares

profits U but*

i

Vance, Sanders in

^

>

f,

,

low

Forum

pf Brevits -t refers^ to the interest
shown

in

the

subject, of

college

investment
companies sponsored by this firm
.ast December.
In recognition of
this interest, Vance, Sanders lists
.he types of investment securities
yield : by a number of the larger
alleges as of June 30, 1945, Here
are the figures:
*
open-end

on

,

in

business

the

.

written dur¬

was

month;

compared

.

:

with

Per-Cent of* :;

EQUIPMENT

Total Stocks

-'

j.

and Bonds
$9,068,237

(University of>-Li//.

.28,611,941

,

Brown

University

-

California

Dartmouth

College

Johns

Hopkins University___Y.-_
Institute

of

5

Williams
Yale

College

?

To Total

" i. %

-33.6

; 20,571,530

>;

* /

-36.6
42.5

Shares, The f sponsor,
distributors .Group,
writes that

there is "good value": available in
selected
stocks
of
the "railroad

";V36.9 ? //;/■

3,764,688

|4i tie 536.6
34.9

/ / $17.5,605,551

36.0

folder

The

-

A PROSPECTUS ON REQUEST FROM

Distributors Group, Incorporated

f; New

Uric

York 5, N. Y.

we

ot

in

new

a

folder

on

Fundamental

brings

YOUR INVESTMENT DEALER OR

63 Wall Street

cate acts

Management

Hugh W. Long & Co.,

v

up

to date the comparison

Fund's

this

of

Investors

performance with
the performance of a $500,000 in¬
vestment in -20 high-grade com¬
mon
stocks selected by a: large
eastern bank for investment,by an
estate.

,

The investment

made at the

was

,

similar

nental

STOCK SERIES

investment

in

Funda-

Investors, after all

costs,

^ould have been sold at the end of

he

period

payment

Shares

for

of-

$993,912.96

$180,065.28

in

after

divi¬

dends.

Thus, the net difference

Priced at Market
^

$500,000 investment

Prospectus upon request from
your investment dealer or

if
-

/

-

t

years

on

In

period
was-$350,322.55 in
over

a

tfiis week's Investment Tim¬

available -to

sents

threat .to

industry. . -A table df
Government war surpluses is pret
sented' showing a total prospective
inventory of $52.3 billion." 'While
this figure might appear ominousr
ly large to American business, th:
analysis reveals that only about $5
billion

is

made

goods which

.

Group

hast made
its

dealers

revised

Reasons Why

Invest for Apprecia¬

declining purchasing

the

dollar

and

a'

power

chart

of

shows

the

Affiliated

Directors

American

of

Business

Harry I.
and

three funds.

Zimmermann.
Mr.

Prankard,
Director

a

;

Custodian

Supervision and Safe-keeping
of Investments

ttFundstt
Request

Knickerbocker Shares, Inc.
General Distributors

•

Exchange Place

Prospectus hiny be obtained

,

was

elected Ex¬

was

President

that

The

'

New York 5, N. Y.
Teletype NY-1-243V




local investment dealer or

Keystone Company
of Boston

50

Congress Street, Boston 9, M-ass.

ing boom.

the long

believed that such

a

it jir
development
run

W.

Hugh

on

combined

/•

or

not the market has

^

!

.also

who .has

Mr.' Prankard,

Executive Vice-Pres¬
Lord, Abbett & Co., Inc., /v'/''-:'/ i
formerly, senior - partner, of v",'

been electee*

ident of
was

company

"Yardstick

on

for

revised brochure

Fundamental

Investors givin?

on

the

Fund

from

its

inception; revised Prospectus dat¬
Feb.
1, 1946 ion Manhattan
Bond
Fund;
February ■ portfolio
folder on Manhattan Bond Fund
Broad Street Sales Corp.—
ed

.

/:•:"'>•••

member of the committee ori
///:
'V\:
investment trust accounting of the
New York State Society 6f, Certi¬
MMfied Public Accountants.
He is
as a

•

trust

ment

lift:

section on invest¬
accounting in "Con^ ///•>//

the

of

author

the American
Institute of Accountants.
;
•

one / of
the
Abbet & Co.,
ago, and has hereto*
as
Executive Vice-

Abbett

was

Lord,

of

served

fore

of

book

reference

President. ,/•:;

/

•

/ v'';

.

;,r ■/:;;;

C. Russell Lea Now

Reynolds & Co.

Is With

giving "Record of Man¬

agement, Liquidating Values, Div¬
idends" on Broad Street Investing

t Reynolds & Co., 120 Broadway;
New. York City, members New
York Stock Exchange, announces
that C. Russell Lea, formerly com¬

and

Corp.

National Investors; a

National Investors en¬
titled "Highlights of the Portfolio."
Distributors Group—Current
booklet

on

released

mander, USNR., has been

active duty and is now as-*

from

sociated with them.

..

lowing quarterly dividends,, pay-

1946 to shareholders ; -

able Feb. 28,

of record Febi 15:

-

:

-

.

/

-

.

Quarter-—./
i Extra;/ Total /
Regular
—For First

monthly

/ Class— // :

.'

1;

.03

.07

.10

;

.

.

.

Union Bond Fund C.

Group Securities,

Agricultural
Automobile

:•

.05

.05

.10

.06 :

.15

Aviation

.09

Building
Chemical

.05

Inc.—The fol-

..

Electrical

.11

.05

:

.04

Railroad

Equip.-

_■

_

.05

..

_

—

Utilities

.s.

.01
:

.08

nl

.05
'

:'

.03

.
.

..03

—

*

i

.08

.04

.03'

.02

,16

-

£

.10 /

.06

.05
'

:

..04'

.04

.

Tobacco

-

,.11

.04

Railroad' Stock
Steel

i
•

.04

Bond

.11

,10

.03

.04
.04

3etroleum

Tailroad

.12

.10

,07

•;

.08

_

*1

.01
t

,

i
,

.12

•

.03

.10.

J

.13

.04

..04

Co

.07

.08/

•

.08 '

nstitutional Bond

Investing

:.15

.05

; .02

Fully- Adminis.__
3eneral Bond._^_
Industrial Mach._

;

.08

»04.

.04

Equips

Food

.12

.07

•

,04

''

.07
■

,

.06

.05

'-

.08

;;

.Institutional Securities, Ltd.—A
dividend

,

•

of

2340(per share pay^

able March 31,

/•/

official /«!

Accdunting,"

temporary

.

Folders

.

Accountants, and

ican Institute of

Judging

a

statistitcs

accounting of the Amer¬

Inc., 17 years

Long &> Co.-—Memo¬
Fundamental Investors

Dividends*

is inevitable.

"Whether

Funds; Inc,, with
assets exceeding $80,^«

,

In

Inc.,/and

Shares,

.

000,000.

Mr.

Investment Report/ on
firm.
Group
Securities, Inc.; : revised
/
;older on Steel Shares; current isThe Building Industry
/ue of Steel News; portfolio folder
Calvin; Bullock
February
on
Low
Priced
analyzes
the for
.' National Securities &
building industry in the curreht Shares
issue of Perspective. " Of especial
Research Corp.—Current National
interest-is a chart-comparing the
Notes memorandum, "Items oi In¬
trend of building costs with the
terest": revised folders on National
trend of rents in large cities. Thif
Securities Speculative Series and
-hart illustrates clearlyone of the
on
First Mutual Trust Fund . . .
fundamental obstacles now standCalvin Bullock—Revised booklet
Tng in the way of an all-out build¬ "A Brief Description of Dividend
ing program.
Building costs haV(
Shares"... Keystone Co.—Revised
risen so high in relation to rente
Portfolio folder s on Keystone
in large~citieS that ari increase in
Bond Funds B-l. B-2. B-3 and
one
Or a reduction in-the other
B-4.
Selected Investments Co.
will have to be brought about in
—Current issue of "These Things
order
to
create
the
Seemed
necessary
Important" . . . Lord.
background-for a protracted builds
\bbett-—Investment. Bulletin
on
of

AmCri4

Union Trusteed

founders

*

V

elevated

Presidency of Lord, Abbett
Vice

to

Mutual Fund Literature

.

■II from your

'

A

20

all

Business

direct

will

Prankard

Affiliated Fund, .Inc.,

can

distance.

.

Diversification,

on

2nd.

of

/

Abbett

Ijeon

100

current move has so
far traversed only about half that

Mr.

.

Prospectus

and

Prankard, was
heretofore senior partner of the
accounting firm of Prankard &

ecutive

for the

Fund,

Shares

-Union Trusteed Funds have elect¬

Mr.

about

from

about 300, the

entitled

untimely death
Lord, the Boards

and Mr. Prankard

eystone

went

Management";

-Following

to the

Find

move

Funds
j

the

in

be sold in this

may

of

.

-

tion." Reason No. 1 has to do with
the

consumer

comparison to date is
and show? that,
former period the

The

i

while

Prankard to Head Lord-Abbett

ed

Should

of

1942.

rather j striking

randum

President

You

up

interesting chart compar¬

an

the 1924-1928 movement in
the Dow-Jones Industrial Average
with that which has occurred since
ing

country, compared with an annual
normal volume here of $75 billion

'eaflet "The Advantages of Profits
-

prob¬

lem of war
surpluses and conl
eludes that they are not a serious

Mr.

which

:

companies

investing

,

Issue of the New York Letter pre¬

Over Income—Two

Y.<:

equipment

three

-The

afford

today

ing service National Securities &

of Mr. Andrew J.

Income

vs.

,

.

120 BROADWAY

-

this

favor- of Fundamental Investors!

}% Distributors

RESEARCH CORPORATION
.

five

Profits

NATIONAL SECURITIES &

New York 5. N.

five

/06.11 in market value and paid a
otal of $126,949.58 in dividends.
Y

,

approximately

covers

years. ? During this time'the $500,100 investment advanced to $696,-

^rities SERIES

,,

f

*

York. City,":-.:.;

estimated Prankard & Zimmermann, certi^
earnings of about 80 in 1946 and fied public accountants of New
140 in 1947 as compared with 60 York and Boston, and fo^ the past
r^/v/
and 70 respectively for the Dow- 17 years/has specialized
in. ac¬
Jones #0 Industrial Stocks.
:Vr) counting and tax problems of in¬
vesting companies; ;? He has been:
Mew, York Leffeirbv-^
serving as Chairman of the ad¬
Hugh W. Long & Co.'s February visory committee on investment

stocks;

,

Surpluses 1

dollar of

per

railroad

selected

cost

and; investment

War

that

shows

Research Corp. discusses the

•/;■"

end of 1940 and the period there¬

fore

principal Underwriter
manager,; also
reached a new sales peak.in Janu¬
ary amounting in the aggregate to
$2,874,000, compared with $2,203,000 in ^apuary-, 1945. »*
t
,
v, ;
as

com¬

if by its purchase you are getting
earnings for less than you could
buy them elsewhere.", ;• A "price
list" of -earnings- is then- given

which
/alue of Competent

that "a

states

offers you good value

stock

mon

31.762,362

sponsoring company, Lord, Abbett
& Co., Inc., .C3: Wall Street, New

are

industry^j'^:.f;';V>;

equipment

t t

,

Railroad

on

.r

Leon Abbett

of Andrew J. Lord.

folder

new

a

Leon Abbett

,

has been elected President of the

-

>

Equipment

..

J.-+

9-29-1945.

In

Harry I. Prankard

the accidental death; a week ago,

•

*

5';-35.9<
' f 36.1 •- : * %
.

"v 1,891.072
/it 4,551,470 \>
i:

i

>.

..

38.0

-

t

rart£e.::;§|fg^^
Railroad Equipment Stock*

*

21.6

entering the
of their long term

third

upper

s;

47.9

-

.

13,940,154

91,098,353
$487,522,032

of

-

1,924,990

chart of the stock

stock prices are now

—43.4 ./*

"

56,002,449'

;

10,295,900.

_

University

*As

7,773,225

;

5,266,203/

/:;6,019,250
"12,320,446'

'Totals
>

J

38,604,697

.

Stocksy

y

10,073,224

*„ 48,403,601 f;

of)

■"Weliesley College

■

t

.12,821,259

-

•

1

6,181,114 '« ;/

.

/

156,164,359 /

y*

College

Stocks ," .:
$4,348,014 ■*

v

.

33,778,879

University

Common

-

29,959,786

•

University

Princeton

Smith

J

Technology-

Radcliffe ''College
Rochester (University

>

17,930,380

+->

Mass.

Harvard

■// Common

investment,manage¬

is presented which indi¬
cates that at their, current levels

investors. Stock

Fundr for whom. Investors Syndi"

-

invest

market

Investors Mutual, Investors Se¬

lective Fun# and.

.

discusses

>

A long term

$4,181,000 a; year ago.
/

compa¬

nies to fill the vacancy caused by

proportions of Defensive and Ag¬
gressive securities in the invest¬
ment portfolio according; to the
level of the market.''
■.

history of Investors Syndi¬
A. face amount of $7,907,000

new

ing

director of

investing

In its simplest terms, it is
merely ta. method of changing the
ment;

The month of January, 1946 was
best "new business": January

cate.

President and

the Lord-Abbett

a

factors from

the

in the

Harry I. Prankard 2nd has been
elected

ne

formula plan'in a recent
issue of Keynotes. "Formula Plat
investing removesfthe emotional

ing by

Syndicate
^

Investing

Co.

Keystone

Record Sales for Investors

recent issue

a

Formula Plan

^

,

in

increase

an

$5,237,715 to $10,328,779 during the year 1945.
Unreal¬
ized
appreciation
on
securitie.
owned amounted to $2,380,074 or
Dec.-31, 1945.
/

only

pie given, the investor's profits are
worth $3,162 more fiet to him than
an equal amount of dividend^
or

reveals

Fidelity

of

report

assets from

example, the investor keeps $7,500

other'" income;
f, *

,

Lord, Abbett & Co.
"

annual

Fund

tni.

in

els.";^.;;':;:^
College Investments

as

intelligent investors."

The

$10,000

$10,000

so

Fidelity Fund

$4,338 of his $10,000 dividends oi
other income.
Thus, in the exam?

investments at the Second Annual

prices to rise sufficiently to
stimulate
production.Business

Tom

is

ordinary

and we will have
an orderly inflation, which will be
automatically controlled as short¬
ages are supplied and competition
orings prices back to normal lev-

"The- present policy of freezing
prices and Stopping production Will
lead inevitably to disorderly in¬
flation. The only solution is to al¬
?

command well-deserved attention

-axable income is $30,000.'

his

Lord-Met! In v. Cos.;
Leon Abbeft Heads

to

no

at

laws

of such profits
with $10,000 of dividends or other
income to an investor whose total
of

value

both

building shares should continue to

and

cnart

brilliant

are

present

A

Prankard Pres. of

magnitude and duration that the

months

six

dividends

to

.ncome."

of
then will boom,

revival

on the
investments

on

than half the rate which ap¬

more

"Wars always bring

// v

based

i$

than

more

taxed

Putting It

2

"profits

already discounted too much and
soon in the case of individual
issues, the. outlook for a building

>oo

1946 to Bank Group

shareholders of record Feb. 28.

-

:

Volume

163

THE COMMERCIAL

Number 4466

4

&

FINANCIAL CHRONICLE

the

accountant—his

cost

legion.
the

over

(Continued from page 979)

;

it

find it simpler to just say

-

In

/v

my

ness

m

operations

which

in

busi¬

our

cover

my

considerable part of the
and—we have no

a

United

as

enough,

mm

hear

we

about

most

States

ical

offices,

nne

getter for them and they live

is

lie

great nead-

a

To read and hear
what they have to say, we would
almost be forced to the conclusion

loan, discount

credit commit*

or

g tees,—I have had for a number of

that

business

little

this

is

man

who, l.ke Venus,

someone

Min¬

or

erva/has suddenly sprung, full1.
'
'/

grown.

years, two rules for the nine lend¬
:

ing officers who work with
First, any proposed loan that
two

of

them.
In

make.

they

the doing

be

ahea'd

of this,

talk it over with me,

may

or

hot, as they choose.
Second, if all
nine
of. them
should,- by any

:

Chance,

that

agree

loan should

a

Little

and

Business

The little business man is

?tny

should

agree

-

made, they may go directly
and

Banking

me.

is this country

as

as-old

and its anteced¬
man who

big over the
years. Do you realize that, of our
15,000 banks in this country, some
70% have lending limits of $15,000
this

country

and

less

or

How

these

that

banks

are

industry they
of

many

really

many

calling,

some are

others.

them?

Where do they go to find
The banks would be the

logical

place—either

which

understand

methods
in

dustries—or

form

customers

your

know and

purchasing

raw

of

in

the.-

the

in¬

industries
of

their

material supplies—and there¬

talked

it

with

over

These

me. .%•

.1 are

at. the present time ia full
force and effect.; I think that two
heads are better than' one, "but

business,

•

little

not. 6nly. withu

up,

grown

but in dependence upon

little / business./1

Almost

every

a

bank

re¬
ac¬

Bankers

How many of ycrur clients have

■

justifiable reason, instead of
guesswork, for the amount of in¬
any

must develop some de¬
of proficiency as general
practitioners in respect to prob¬

lems of business health.

little

undertake

4

/

-

,

L;

n

v,

:

How many of your people have
really full understanding of the
problems in selling their prod¬
ucts?
How many of them know
f

can

should be able to do at least

/ The banks with

\

Most of

through long experience,

us,
or

ventory they carry—which, if too
large, burdens them with the add¬
ed cost and market hazard of car¬

a

rules have worked .very, welly arid

Every business

please.

gardless of its size has

gree

purchasing oper¬
ations? /"//'/ •/;./' •■/• y/ZZ/x1;//-, //: /,/y//

banking business itself is "lit¬
tle business" incarnate/Banks, have
The

general
practitioner—the father confessor,
of you

diagnosing of

with

business

a

/ \
their contacts

our own.

all

of

kinds

to / develop
the ability to

must

-within

themselves
become
general. practitioners, to continue
the analogy— business counsellors,
if you please.; /
•" ►';
Then when: you-encounter spe¬
.

....

their markets? How many of them
understand
the /value; and /the

cific weaknesses through diagno¬

former little business in this Coun¬

methods of proper

sis, the thing to do is to turn your

which has grown to great
stature, has done so by the imple¬
mentation/along the road, of its
banks. ? What nonsense for these

proper

customers

pressions—arenot, I think, sound,

people to

not.

are

in

nor

keeping with
g heritage in banking. *
In

•

•:

/

our

great

/ credit-

risks,-^banking
in this
//country,: outf of its/own ihinkirig
own

has

re«mirc*s.

created 47 Bank Credit Groups

/

Which

cover

every; area of these
States, two of which you

United

in ; this country for many years.
The figures are -available over a

period of a great many years to
who will take the trouble
them up.
He thinks it is

anyone

to look

The outstanding feature of

credit.

this great mortality is that it has
been caused, in very great part,

meptitute

years,

research

like

the

lineman

in

a

/ football
team. - If an opposing
/ player gets by the line, or
through
Z; It■; he is still faced With the sec-

// ondarW-deferiise'g;enerail^ - the
corresponds to the correspondent
banks in our banking system.
If
the1 opposing

succeeds

runner

in

//getting either through/ or around
the line of play and also by the
secondary defense, he is still faced
with the problem of getting by the

/

safety

man—generally the quar¬
terback, who plays well behind
the team.
In my simple analogy,
the

Bank

Credit

quarterback
1

-

Group is
safety man.

or

1

'*

'

<

Banking is

'■

\

i

that
;

,

Risk Business

a

In New York I happen to be
the Chairman of the Bank credit

Group which has committed to it
$101,000,000. In the Second FedReserve District

eral

I

have

not

yet encountered, a proposed loan
from a local bank which has not
been

dealt

■p.with
;

.

the

with

local

in

cooperation

bank,

either /by

of the members of the Bank

some

..Credit Group in? their individual

capacities or else by the
Credit Group itself.
.;/

Bank

;
I urge, that regardless of the size
of your bank, or of the community
in which it is located, you do not

turn

aside,

turn

or

to

over

our

governmental

agencies
requests
credit ..without, firct. laHon*

for

them

with your

over

banks

/. ent

correspond-

Bank

the

or

cieait

Group serving the area in which
located, always assuming,

you are

of course,

of

that

you, as

the banker

the

proposed borrower, have
in
his
integrity and his
"know-how."
These
two/attri¬
butes are basic in any credit riskfaith

,

•/;./ Let

also

us

thinking of
a

bad

a

loan.

stop this idea of
"risk loan" as being
Banking is a risk

There

business.

are

of risks other than

business

indulges .in

operations
we
a

walk

.every

across

forms

day.

risks

in

Every time

by trucks, street cars

cabs, if we have
our wits about

Now, if I

its

the street, we take

risk, but only rarely are we

over

a

many

bankmg/Every

or

our eyes open

/"■

us.

may,

let

run

taxiand

'f';•'■■■■
me.

turn /or

few moments to this much head¬

lined little business

man.




Curious¬

;

merchandising,
packagmg, etc. — knowl¬

edge of all* of which wriuld tend
co increase their volume of/sales

and/thereby spread their over¬
head/costs, to their definite ad-t
vantage?
w - /
/

How many of your clients know,

or

t

the

reasonably/ understand,
implications of their incoijae

even

have

medical

increased

longevity

of

hu¬

This has not

•

The medical profession

ed

medical

develop¬

laboratories,'

on

the

ion, the next great forward

the human life-span has increased
from
100
deaths per 100,000 in

in

1921 to 96 per 100,000 in 1943. Tu¬

inspiring thing it would be if our
bestir

would

banks

themselves

sufficiently to become
factor

an

their

to

clients

unselfish

an

do,
to

thing

to encourage
do—because the
or

better the degree of management,
obviously/ the better/the,/credit

is

a

on

a

greater obli¬

gation to the hurrian race than just
easing its pains—and so .developed
the

whole

berculosis

trend

was at

toward

preven¬

its lowest/death

our

fundamental

the

because

Laboratories for Small Business

the first three years.

In my opin¬
step
this country
will be a substantial improvement
in the adequacy of business man¬
agement, What a magnificent and

banks

all of

tive medicine, with the result that

of

be

means

for

urged

greatest percentage of failures in

economy

no

.

ment
in
the
human
life-span,
which; sihee 1921 has been about

premise that it had

the

effort the bank.?

to lead
fully with busi¬
lodlt
banks for financial leader¬
equip, themselves

Business has a right to

ness,

thd

to

ship.
We must assume this
sponsibility—or government
assume it by our default.
A very great

deal of thought ha?

in my own state to the
practicability of a state-wide lab¬
oratory job on this subject of in¬
ducing business to take advantage

available to it

of the many means

improve the quality of- man/
agement. My best guess would be
that this will in all likelihood be
to

and working
out a highly intensive and fortb-.
right
appeal
and
performance
with the businesses in that city.,
; The result of that effort, which
can hardly be less than successful^ /
would provide the urge for busi¬
in other cities and

ness

for

turn

take the same

educational steps.

fact, that

It is
we

a

so

class

a

is

Are

our

business management?

than

smarter

determined

men

Are
not

experience, I am conyincacl
open-mind¬
ed,
ambitious and looking for
every possible means of improving
owp

that business men are

their batting average.; •;

Let

clients. There
for this—

pot

us

amazingly firie / opportunity
just now~-when so many people
an

starting
new
businesses
others,
with
improvident
management, .are only able to
struggle along in their existing
businesses—to induce these people
are

or

political.

*Z/f

•

the quality

better

of

management in business, the bet¬

product, presumably the
price, the broader the
market, the greater the employ¬
ment and the higher the prosper¬
ity for all. In reality,* this goes to
the very core of the American
philosophy of achieving higher
living standards through higher
standards of productive efficiency
—a principle which is alone pos¬
sible in a democracy—and is the
very essence of a private-enter¬

lower

the

ness

concerns

banks

with

We must make it

busi¬

of ours

to know these clients

management and to urge these
people to go and seek the benefit
skilled

ticular

The/ Board

Governors

of

in/that

advisors

field.,

As to

those

as

Treasurer.

//The
were

rate in 1944.

,

following Vice-President?
also re-elected: ..Commissiout

Most; people go to a prise economy/
>
House'Group, Richard F. Teichgeneral practitioner, who : pointi
//This trend toward the: improve¬ graeber; Hide Group, Edward L»
the way to a prppe^ specialist/
ment of standards and effective¬ McKendrew; Metal Group, Ivait
Parallel in business:, example, ness in business management must Reitlerv Silk Group/ Paolino GerlL.
„

„

.

T/i/V announcement is not
/

.-...//

an

offer of securities for sale

;■. ;.

-

......'V-

'■

or a

solicitation of an offer to buy securities.
....

^

ew

.'v,-

^

;

^

their

size—who

are

the

whole

countrv.

As .to

credit

60,000 Shares

V.*VL V O'-1^

m'

V

-

-

' ;/

i

1 '

•

1 '

'

/

\\

s

'f; *

v

s

Universal Pictures Company, Inc
4%% Cumulative Preferred Stock

Price

$102

per

share

plus accrued dividend# from March 1,1946 to the date of delivery

Copies oj the prospectus map be obtainedfrom such ojthe undersigned
{w/io are anXong the underwriters named in the prospectus) as may >
legally ojfer these securities under applicable securities laws.
\ :•: : : "//>..
.V •
ft M I

;/<

par¬

seekers of

.

1

;

those

are not seeKers

structure
_

enterprises
of

-

credit, such im¬

provement
in
management will
enable them to more adequately
and

more

profitably

The First Boston Corporation

-

BIyth & Co., Inc.

of the

which

discharge

their obligation to the economy in

'■

February 20, 1946

Issue

enter¬

credit, / an
educational / program
such as this would vastly improve

of

Commodity Exchange, Inc., at a
recent meeting re-elected Philip
B. Weld of Harris/ Uphani & Co.
as President and re-elected Floyd
Y. Keeler of Orvis Brothers & Co.

prises in this country—regardless
of

.'

Of Commodity Exch.

some

our

better, to have the talent ourselyes
to
recognize the weaknesses in

of

/

Weld Re-Elected Head:

tunities

bank.

.<

ter/the

take

advantage of the oppor¬
for, improving some 'one
of the phases of their respective
managements with a view to rais¬
ing the average of the skill of the
whole management in any con¬
cern, large or small.
Every one of

;

reason

and

these

;

try not to fool any

curi¬

good deal like the horse—
lead him to water, but

to

to; want

develop a greater mastery of thehr
own calling in life?
Based on my

cannot make him drink. There is

to

ht
business

successful men

professions?';

the Z

few of them do it.

can

*

"

import¬

first

It

managerial advice.
ous

communis
under-,

ties in New York State to

deed, medium-sized businesses as
well—can-

medium-

by selecting a

initiated

sized city in our state

this
We have many

accomplishment!

-

been given

in implementing

hmilities in this country to which
these small businesses—and in¬

re~

Will

of the
the very definite interest of com-, people any of the time—but to dCf
Z:
:
/ /,/ /? a really / aggressive/ job of per¬
vantage and benefit of that knowl¬ mercial banking.. /
edge ? How many of your clients ; This would not contemplate, in formance which ; will be 'a real
help to our economy; a credit to
know anything about a budget or
my thinking, the urging of this
banking and a complete answer tcr
a cash forecast? Contrast the busi¬
line of action only on people who
our critics, whether sincere, crack*-;
ness death-rate with the
improve¬ are seekers of credit—it should be

case/ with business life.
The average life of a business en*
terprise in this country is still be¬
tween 5V2 and 6 years/ with the

been the

should

And

implemented.

and to cooperate

of. business, which is in

laboratories

life about 15%.

man

..

structure

the period of the past 40
the medical profession and

in

to; the/ men who are
highly;skilled in.their respective
specialties.
This kind of service would by

taxes and are thereby, enabled to
take fully, and wholly legal ad¬

Over

ant

i',",

■„

by

inadequacy of- man¬

or

agement in small business.

have here in the State of Ohio. To
iriy way; of Thinkings/the local
are

busi¬

has been extraordinarily high

ness

banks

/

say

The mortality rate in little

of-government guarantee and to
bring to bear on / requests for
credit collective talent and experi¬
ence and the facility for
spreading

and out of its

that banks have no
in the little business man!

interest

■

effort to offset the effects

an

try,

and

.

Smugness
—lack of patience—unwillingness
to explore a proposed loan—the
tendency to be guided Jhy first im¬

that 20 heads

be urged

I hold that in this

to

the

sense

a

to conduct their

proposed borrower until they have

say

in

count somewhere with some bank.

rying it? *

/circumstances

;v/://./■:••■ •■ w-'
the banks must learn

We in
become

knowing where to

or

by benefit from the savings which
with a knowledge as. to how

located in almost every town, vil¬
lage and hamlet of this country?

can,

find out.

the

having

come

under no
' "No": to the

fnot be made, they

knowledge

the

their

sources

land.

do

think really know their oper¬
ating costs and are not just guess¬
ing at them?
:
; '
How

is

name

scattered all
Like every other
more skilled than

are

be.

may

cilents

your

you

He is the

ent colonies.

made

whatever

people occupying polit¬

lroiu

'•/,//■;/.///Z '/ by headlines.

•

own

bank

own

r

"No" as
they

tactfully"

politely
and
/ know how. /

ly

,,

people

bankable//Too; many

They

Kidder, Peabody & Co.

Shields & Company

THE COMMERCIAL & FINANCIAL CHRONICLE

982

We Are
Securities Salesman's Corner
:By

Thursday, February 21, 1946

Nearing the End of
The Bull Market in Bonds

JOHN DUTTON:

hew securities, to meet the de¬
(Continued from page 958)
The other day we had a visit from an old friend who lived in imports to expand bank reserves mands of the market for issues of
Boston.
He told us a story of how he got his brother a job as a to a point well beyond the ability different maturities and specifica¬
security salesman, and of the unusual success this new salesman of the banks to make use of the tions appropriate to various classes
This combination of cir¬ of investors.
In this manner, de¬
had achieved, Here is an idea for a small firm that wishes to funds.
increase its business—but first you have to have the right kind of cumstances
placed the banking spite the tremendous borrowing
needs of the Treasury, it was pos¬
a brother—or maybe a cousin*
system in a position where further
y
;
Anyway, this new salesman had been (of all things) a drug forced liquidation of bond hold¬ sible to maintain relative stability
clerk. He made a small salary, lived in a typical New York apart¬ ings was no longer necessary, and of rates on the pattern established
^

ment, went to his work every day, and that was that.

His brother

had quite a large clientele of security buyers.
In addition, the head
of this firm also had a number of smaller accounts that were becom¬

ing too much of a chore for him to service properly. The two of
them got together and decided to give the former drug clerk a
chance to make a go of selling securities.
He did—he made a total

$10,000 in commissions the first six months he was in the business.
If you have a small firm you can take on one salesman and
sometimes do a better job with this one man than you could accom¬

of

not only to
absorb the bulk of the new offer¬
the banks were able

early in the

plish if you tried out several of them. / The plan here was very
simple.
Both the head of this firm and the salesman culled out a Treasury bonds declinM-fromnumber of the smaller accounts (and some prospects) which they about 3^% to about
no
longer could handle properly, and they turned them over to
Phase H—The Anti-Inflation
the new salesman.
This gave him a good start.
In addition they
:< :
worked with him—taught him the business—helped him over the
/ ;;/ Interlude
/
The second phase represented a
rough spots and watched every move he made for the first few
months.
They were careful in the selection of. securities which he temporary reversal of the mone¬
sold to these customers.
The rest was easy. This fellow had a good tary policies followed in the first
business background to begin with—he had common sense—and he period.
Alarmed by inflationary
had a sales training in the drug business.
Once he found out that developments in the commodity

period.,/

dramatic *■ down-turn
in £ yields.
Medium-term fully taxable United
States / Government ; obligations
moved from 2% to a llk% yield
basis and tne longest-term unre¬
stricted
Treasury issue from a
5

a

2 % basis. This

tive

bidding for outstanding issues
by institutional investors and this
in turn had its origin in two de¬
'

;

;

\

an

involuntary
which

*■.

\

necessary concomitant of fi¬

nancing the war, brought an un¬
precedented increase in the sup¬

ply of money.
Once unleashed*
this tremendous increase in
money;

an actual and potential source
of demand for investment media

by those who controlled it. Thus
there has existed during the 13
years since 1933, a condition id
which the demand for in vestment

securities, as - compared with ■ the
supply of such securities comini:

.I/,.

,

to the

market/ was kept in rela-v
tive unbalance,
;
:" '-Jlt

on

,
..

XlX''

new up¬

surge in Government bond prices
resulted primarily from competi¬

velopments.

Finally,

expansion in bank credit,

as

In the past 12 months, the bond
market has" experienced ? another

2Vz % to

rowing.
was a

supply, based on, Government bor¬
rowing from the banks, remained

Phase V—Starvation of the
Market

ings of the Government, but also
to enter the bond market aggres¬
sively on the buying side/ - As a
result, prices of bonds rose'and
yields fell; yields cm highigrade
long-term corporate^" bohxfej fde¬
clined from about 4
to /about
3% %, while yields on dohig-rterm

war

to the supply of funds by a con¬
tinuous expansion in bank bor*

I

The Prospect

So much for arnecessarily brief
and perhaps inadequate" appraisal
of the conditions responsible for
our 12-year bull market in; bonds; XX
Now let us look at the alignment
:

In the first place, the Treasury

of forces which is likely to prevail
adopted a policy of what has been in the investment market during
commonly referred to as starving the years ahead*
and/or threatening to starve the
Changes
so
fundamental
in
market for intermediate and long- character
are in process of forma-:
term Treasury obligations.
Early tion .that an end to the bull market
in the war, - the Treasury estab¬
in bonds appears to be not far
lished rigid restrictions as to the
away;
and within a period of
purchase, by commercial banks of months thereafter .we should
wit-^
new issues of long-term Treasury
ness the beginning of a long pe¬
anything. You can find out in two weeks at the most, whether or long-term corporate bonds rose to obligations. Later, similar restric¬ riod of rising bond yields. This is
not a new man will make good in this business.
If he doesn't begin about a 3.40% basis and yields on tions were extended to all new is¬ not to say that the forces respon-r
to show promise within this period of time he should be persuaded long-term United States Govern¬ sues with a maturity of more than sible for the bull market have yet
ten years.
But in the Seventh been fully-spent, -for gold imports
to give up the idea of selling securities.
Almost anyone can sell ments to about a 2.80% basis.
Drive, no offering of ten-year are not unlikely and they, to-r
securities today.
Why not get yourself another salesman?
Phase HI—Renewed Reflation
obligations was made, the longest- gether with a return of currency
term eligible issue being a 5^- from
Phase three, which
extended
circulation, could further in¬
McLaughlin, Reuss & Co.; Ken¬
year 1 Vz % bond, and. in the Vic¬ crease the
neth A. Roome, Hardy & Co.; roughly from the spring of 1938
supply of funds seeking
tory Drive no bank-eligible se¬ investment. In this setting, if no
Clarence E. Weigold, Struthers & until outbreak of the war, repre¬
sented a return to the basic easy curities with a maturity of more offsetting action is, taken by our
Dean.
than one year were offered. Since
banking authorities, if they con¬
Members
of
the
Nominating money conditions of phase one. the
banks were kept supplied with tinue to
The association of Bonk Brokers
The banking authorities added to
temporize with poten¬
Committee for 1946 are: Anthony
these
measures
have tially dangerous issues, and if the
the pressure of money over-sup- reserves,
of the New York Stock Exchange
J. Bailey, Robert G. Johnson &
tended to deflect commercial bank
has elected the following Officers
ply by reducing member bank re¬
Treasury continues its
present
Co.; Edwin F. Dodge, Abraham &
serve
and Board of Governors for 1946requirements from * their buying of such' issues into the open policy of starving the market for
Co.; Nathan Shulman, Herzfeld &
market and thus to exert pressure
1947;
■'* .vV.;"-:
intermediate and long maturities
peak levels; but the impetus for
Stern; Walter F. Seeholzer, Sagar
on the yield structure in the in¬
President— Roland L. DeHaan,
and of refunding all issues that
increasing ease in the money mar-'
& Seeholzer, and John J. Trask,
Mabon & Co,
ket came chiefly from the deluge termediate and long-term issues.
come up for call or for maturity
Francis I. duPont & Co.
of gold imports representing the
In the second place, there has into one year, Certificates, thd
Vice-President — C. ; Peabpdy
flight of European capital in the been^a growing^jconviction that stage may well be set for a further
Mohun, Stern, Lauer & Co.
L. A. Macomber Dies
face of recurrent war threats. Dur¬ "maturity doesn't mean anything and final spasm of decline in bond
Secretary - Treasurer' ; —J ohn
Lewis A. .Macomber, after 66 ing this phase, bond yields con¬ any ihore," and that intermediate
Wasserman, Asiel & Co.
■
tinued to decline with only minor and long-term bonds involve no
years of consecutive employment
Board of Governors (in addition
'<a The Need for Anti-Inflation
.//■
■j
with H. Hentz & Co., died Tues¬ interruptions until yields on high more risk of price decline; than
to officers): Douglas G. Bonner,
Policies
;
s
day, February 12th. Born 81 years grade corporates were under 3% shorter term, lower-yielding is¬
Bonner & Gregory; Arthur Cowand yields on long-term (partially sues. This idea apparently is based
But this phase is not likely to v i
j
en, Jr., Cowen & Co.; Howard M. ago in Hempstead, L, I., Mr. Ma¬
tax-exempt) Treasurys were be¬ on the assumption, which certain last very long because our fiscal r.
i
Ernst, Ernst & Co.; Maurice A. comber started working for the low
2^/'/// ;x;'c"^;y: ^ f. Government authorities fostered and banking authorities are fast'i/,;:
f
Gilmartin, Jr., Charles E. Quincey New York Stock Exchange firm as
and others did not disclaim, that approaching
one
of the great
/ f
& Co.; Thomas J. Hickey, Vilas &
Phase IV—War Time Stability
a messenger
'
regardless of how much yields de¬ dilemmas of the times, namely,
boy in 1879. He was
Hickey; Samuel L. Hornstein, Carl
:
During the war, the new capital clined, the Federal Reserve Banks how to maintain interest rates at
M. Loeb, Rhoades & Co.; Sylvester associated in the commodity de¬
could be counted on to use all the inordinately low levels and at tho
market was largely
; /VI
pre-empted
P. Larkin, Pflugfelder, Bampton partment of the firm at the time of
/
by the Government, which devel¬ resources at their command to same time to control the tremen-?
&
Rust; John F. McLaughlin, his death.
Thus dous inflationary forces which
oped a policy of holding interest prevent them from rising.
rates on new issues of taxable Federal Reserve policy came to be have accumulated as the result of
j

could make big earnings selling securities he dug into his job and stock; markets, the Federal
Reserve officials raised 1 the re¬
with the sort of vigor that produced results.
i:
:;
;
It seems that this would be a good time to add some service serve
requirements of member
men who would like to learn the business of selling securities.
If banks, cut excess reserves from
about $3 billions to less than $1
you have the small accounts (and who doesn't today) why not turn
them over to one of these fellows and let them go to work develop¬ billion, and thereby precipitated
ing a business. If there ever was a time to break in new men in a short-lived, but severe decline
the sales, force THIS IS IT.
Anyone that can't make the grade now in the bond market in the early
is just too lazy, or too unfitted for the job, to make good at almost part of 1937. Yields on high grade
you

.

NYSE Bond Brokers
Association Elects

-

-

,

Lipe-Rollway Corporation

<
Treasury obligations to a well de¬ completely subordinated to the de¬ past policies, %/;
fined pattern of %% on 90-day sire of the Treasury to drive in¬
During the war, the uses to
Bills, %% on one-year Certifi¬ terest rates on its obligations to which people could put their funds;
/
cates, 2% on eight to ten-year is¬ ever lower levels.'
were limited not only by the prac+

and

sues

2l/z%

tical unavailability of

longest-term
Throughout
period the banking system
served as an agency of residual
credit, and it supplied to the
Treasury all funds necessary for

unique

the prosecution

Convertible $1 Preferred Stock

stances and policies.

marketable

on

Summary of Forces Making for

bonds.

Bull Market in Bonds

this

Class "A" Stock
Circular

on

request

and above those

Herrick ,^DDELLA CO.,
55 LIBERTY

STREET, NEW YORK 5, N. Y,

other

of

the

war

over

forthcoming from

To make this pos¬
sible, the Federal Reserve Banks
added
tremendous
amounts
of
sources.

Government

securities

to

their

portfolios, thereby expanding the
reserves

Fruit

Arden Farms
Fullerton

Growers

Inc., Com.

Co., Pfd. & Com#
Oil

Co., Com.

i /

Members Los Angeles Stock Exchange
*24 SO. SPRING ST.

TRINITY 3761

LOS ANGELES 14

Teletype: LA 68
Market Quotation' and Information




on

all California Securities

were

The

bonds

12-year bull market in
has thus resulted from a

combination

of

circum¬

The general

range of

limited supply of funds, the Treas¬
ury

contrived, in its offerings of

self-re-#

patriotic response of
nation.

following the severe deflation of
the early

"savings" of the people were high
was much easier to channel

and it

these

funds

into

in

investment

:

policies has j ust begun to appear,

,

pieces oY
evidence, inflation has shown it-;
j
self in black markets, on the la-,, (t«/ i
bor-management front, in soaring
/ ;
real estate prices, and in a sharp,
v
rise in the Stock market.. Recogni*
,

,

tion of its threat to economic sta¬

bility was recently acknowledged,,
by Mr. Eccles, Chairman of the ■ /
Board of Governors' of the

Federal
in as clear a
statement of the problem as we
have had from any Government
Reserve

official.

System,

The direction in which

probably will have no alternative

t

.;

To mention only a few

Government,

the

'

^

infla-?
tionary forces resulting from past

which simultaneously was adding

from

:

r

ties than will be the case in the

moving suggests that cir¬
cumstances
are
likely soon to
force the hand of the Federal Reserve and in the course of time it

cipally

S-i'V'

So-called

months and years ahead.
The full impact of the

enterprise remained at abnormally
low levels throughout the period.
The demand for funds came prin¬

to purchase
bonds.
And in order to anchor the whole

and

embattled

seeking investm ent was! repeat¬
edly
out-running the demand,
with consequent pressure on the
rate structure.
Deposit reflation,

securities maturing in one
year or
less.
Closely coordinated with
this policy of maintaining an un¬

which

an

United States Government securi-

yields to a low level, the
Federal Reserve Board established
a
preferential discount rate of
72 % on United States
Government

price, which gave the banks ac¬
to unlimited amounts of funds

cess

goods, but

by rationing and by the
straint

environment of the market was
one in which the supply of funds

'30s, was succeeded bydeliberate inflation in an effort
to force business revival.
This
was aided and abetted by tremen¬
dous gold imports, as foreign cap¬
ital poured into the United States
from a war-inflamed world. With
our domestic economy in a state
of chronic depression during the
'30s, with little incentive for ex¬
pansion of production or for the
initiation of new ventures, the de¬
mand for new ^capital by private

with

Wagenseller SDurstylnc.

the

banking system,
maintained at a level
near $1 billion in excess of
legal
requirements.
In
addition
the
Federal Reserve Banks agreed to
purchase Treasury bills at a fixed
which

American

of

■

.

t

we

are

;

Volume 163

The commercial & financial chronicle

Number 4466

but to tighten the reserve
position
of the banks >sor that the fires of
inflation will not be fed by a

steady

stream

ment

newly created
The significant point

policy

is

of Govern¬

likely

to

be

The

a long series
designed purposely
t<? bring .lower! and lower interest
rates, as ,has been the case since

the early '30s,

aredikely

we

war

period from having a re¬

sponse hi price-inflation
post-war period.
^

•

-

.

^

,V

••

...

the

in
■

.

^

»•

^

"

c
*'I../4,r:

"Basic Factors of Capital
Supply,
♦
and Demand are
Changing
\

*Whatever

be the direction

may

,

,

Rise

the

in

;

!

perhaps unwise at this time
to attempt vto measure - precisely
bow large an! increase in : bond
yields tis in -prospect once the
trend is changed.
But with - the
low--interest rate philosophy so
deeply embedded * in our official
thinking and with the interest cost
ion the Government debt so pow¬
erful, an

argument for low; rates,

ft would be rash to assume that
anything

than

more

moderate rise

and

slow

a

the structure Of

in

interest rates would be looked

on

°f

^

Government. policy, -the basic with equanimity by our.fiscal and
conditions governing the supply of "banking
authorities." Insofar as
and demand;for funds in the In-'
possible they will probably: resort
vestment markets are
likely soon, jto qualitative credit controls to
to be.»such as to bring about a curb
inflationary excesses; and it
change r in the trends of 'interest would! not be surprising if they
rates and bond prices. ! Much of were to.

appty^the credit brakes

Deal

depended tooheavily on assurances
of future invulnerability of
the
market

It is

:

per¬

of

Interest Rates;.',«

-

haps ;even" in Treasury policy, a
reflection of the urgency of pre¬
venting the money-inflation of
the

the other hand, where banks have

Extent
•

soon

Federal Reserve and

V

terest rates.

measures v

to see in

an

re¬

versed, and instead of
of

end to the bull

tion, no change in investment pol¬
beginning icy in anticipation of a rise in
of what may be a long sustained yields of such proportions as seems
upward trend not only in bond likely to occur in the next year or
On
yields but also in short-term in¬ two would seem advisable.

of

bank credit.
is that the direction

to favor

seem

market in bonds and the

,

programlbfl eco¬

reluctantly and sparingly;
Quite
reformwasbasedupohthe possibly, the transition to; a bear
-befief that the source of !the na'l market; in bonds will be.
slow^in
!tion s ills was tov.be found in
over-- developing
i-. and - the decline ^in;
saving. According To.^thiS : school prices modfcyatevin proportion^ati
thought,; the remedy, lay -in !2e- least during its earlier* phasesifBut
distributing or leveling down the it must be kept in mind that,^dur¬
flow of purchasing
power from ing the bull market in bonds," the
the high income to the low income basic factors
making for lower in¬
.

have

and

extremely

ofthis view,

were

increasing the wages
■of labor as .opposed to the
profits
of industry.
Whatever, the merits
nessed

we

have in fact wit¬

significant shift in the
savings - investment relationship.
The bulk of our
savings has al¬
ways come from the high income
groups, and I doubt if anyone will
a

challenge the statement that very
high and steeply progressive tax
rates

the

incomes will continue in

on

post-war period.

Hence

volume of saving from this
is likely to be restricted.

the

source

Savings

terest

ried: to

while

in

everyone a

less

living give the people

incentive

to

Business

save.

corporations, moreover, have been
encouraged, to put it politely, to
disburse a larger
percentage of
their earnings and to
engage less
.

avidly in that old-fashioned
tice

of

"plowing

take drastic

to

inflation;

Now look at the other side of
equation. ; Visualize the fact
that, for a time at least, the de¬
the

mand for bank credit and for
cap¬
ital funds must be adjusted to the

probability of

a

national

income

ranging from $120 to $140 billions
per year instead of the $65 to $80
billions

per

in

annum

prewar

and

to

against

prevent
back¬

a

re¬

in bond prices and yields
be larger than they expect.
markets

orderly

are
not 'always as
would like them to

as we

be, and especially is this likely to
be the case if the preceding bull
market has

risen

violently in its
the
chances seem heavily to favor a
moderate and slowly rising trend
in bond yields, for probably noth¬
ing more than that would be will-*
ingly contenanced by the authori¬
ties*; Within! fo
later

stages.

Nevertheless,

pattern, however, there
pronounced

some

fluctuations

&

Co., Inc., specialists in Government securities.
Board flashes in¬
stantaneously each change in the market for any of the various

heeded; liquidity, readjustment of
portfolios "along more conserva¬
tive; lines might Well be carried
out in the months ahead.

!'

"'■

;':

As to prospective borrowers of
capital, the increasing possibility
of a changed trend in bond prices
suggests that it would be prudent
'to get' planned refunding opera¬
tions out of the. way soon, "and to

raise ,.within the ; relatively near
future! such; of; the funds needed
"for nearrterm expansion purposes
as...

may! appropriately take the
of long-term, capital flota¬

form

tions.

Beyond that it is question¬

able how far the prospective bor¬
rower

and

tion

should

in

for the timing
coming transi¬

go,

of the

extent

the

bond

market

is

not

subject to precise measurement.
#"

.

*

•

.

s-In.conclusion, the bull market
iniJonds is nearing its end and we
Should; soon thereafter enter, what
ds^Mely' to be called- by' the ecomomicvhistorian the post-war bear
market in bonds.. Unless the au¬
thorities

exercise

the

;

issues.

lights "alerts" traders immediately of an upward
A signal indicates "buy" or "sell."
Single
often run into may millions of dollars.
With its main
offices in New York, C. J. Devine & Co., Inc., is in direct communi¬
cation throughout the trading day with its network of eight branches
in various parts of the United States.

transactions

will prevent the market
experiencing another sharp
rise from, already high levels,1 the

from

end of the: bull market and the be¬

ginning \of the bear market may,
be
marked
by
more p violent
changes than are necessary or de¬
sirable.

T

,

;

„

r

„

ternately

apply

-

may

short-term

and

relax

A system of

downward movement.

or

restraints

which

....

Employees
Form Quarter Century Club

Curb

Newburger, Loeb & Go.
Partners Resume Duties

nounces

M. Newburger have all

■

Charles

ciation;

Investment

borrowers?
swer

in

is that
of

rates

moderate

proportions
would have little significance to

tional

experi¬

of

export

trade to double or triple the level
of the '30s, an increase in the num¬
ber of automobiles in use by so
much

as

in

v.

h-'r1'

u

^

v

f'

tions

yields

of

income from

and

from
one

tion has

investments to maturity, would be
ill-advised to speculate on the pos¬

in

municipal

country to city, and
city to another this na¬

experienced; a tre¬
expansion in .demand
arising from the fact that the war
ever

ent

our

people to an income status where
they can. afford to increase their
consumption. All of this adds up
to

a

tremendous expansion in

demand

for

capital

funds

the
and

when viewed

against the probable
volume
of ;savings,
it strongly
suggests that the environment of
the

bond

market

will

different from what it

be

greatly

was

in the

securities

proceeds

•>

'

l

' '•

;

' l i

-

would

appear

With

>•'

1

'

.

partner

York City, has left on an
business

G.

an

"

offering of these
..

comfortable

banks,

margin,

,

'

*

*

*

*,

••

'

$10

•'

v

*

<"

,

''

- t.

•' '

^

share

per

!'! "; :
>V'V
V>".

r

•:!

•

;•

/ ..v'; *

\.'

V» fL,:.'"'

\
V1"
*■* f-d .V- f;i\

;;;;

'

•«

.:

V,

v

4.»

•

.

■■■.

;VJ.

•

:':S

•

;;"V;;!

*<*'

'•

.

*

V

?v!'v .'•><'

4

•>.,

W'.U*4:r.

V.

id
.»

V.°

\>\.

rr& f:Company, Inc.
uB

estimated

Dempsey &. Company

.

Hirsch & Co.

7

foreseeable

ond/for

future, and, sec¬
limiting investments in

Freeman & Company

A. M. Kidder &. Co.

intermediate and long-term issues
to

'

sound
in the

increases in loan demand and pos¬
sible decreases in deposits over
the

cf'

Copies of the Prospectus may be obtained in any State only from such dealers participate
ing in this issue as may legally offer this stock under the securities laws of such State.

past, calls first for investments in
high grade, short-term obligations
Sufficient in amount to meet, with
a

V.M

highest

grade

securities

in

amounts which there is good basis
to assume can be carried to ma¬

coming months turity.

For banks in such

a

posi¬

February 19,-1946.

.

*

'*

■

in

extended

But where

a

to

.

.

trip to the Pacific Coast.

plus accrued dividends from January 1, 1946

immediate con¬

cautious policy
to be indicated. : >

respect

D-',

*1 L

v

Price

offset loss

investment policy now, as

Thus the prob¬




to

liquidating pres¬
and
holding the

uninvested.-

embarrassing,

abilities

the

Edward

*

32 Broadway, New

Of the above mentioned 100,000 shares, 53,877 shares were purchased by holders of
common stock in the exercise of their preemptive rights, leaving 46,123 shares available
to the several underwriters for public offering, all as summarized in the Prospectus.

:

sideration and book loss would be

great bull market.
over,

adequate

income is not

mendous

has raised several millions of

Ginberg,

(Par Value $8)

from

of

miles

an

Frank

Strauss Bros.,

55 Cents Cumulative Convertible Preferred Stock

high grade
obligations and able to hold their
upon

expansion
public utility

additional

Trip

long-

require the building of

highways,

Becker;

1

'

sibility that price declines within
any
particular period; would be
large enough to provide increases

facilities to meet the needs arising
from one of the greatest migra¬
from

income

Certainly

of

to

thousands
surfaced

on

for sale, or as an offer to buy, or as a solicitation of an offer to buy, any
of such securities. The offering is made only by the Prospectus.
.

investors — either institu¬
or
individual — dependent

ever

Ginberg

Sterling Engine Company

■; the
an¬
long drawn out rise

observers expect, we are to have
the biggest volume of home con¬

expansion

Frank

100,000 Shares
S Jv''

Obviously,
a

investors.

an

'•

Policies

What would the outlook, as it
has been pictured, suggest as to
the investment policies of individ¬
uals, investing institutions and

term

enced,

been

,

the

We shall need to expand
capacity: in many lines if, as many

struction this nation

has

This advertisement is not, and is under ho circumstances to be construed as, an
securities

25th

Vernon, Vice To Pacific Coast

Charles H.

R.

the

credit brakes.

most

years.

McGowan

coincide with

will

June 27th.

on

Other members of the club are:

Gustave

partners'in the firm.:

E.

organiza¬

!"p

,

berger, Secretary-Treasurer.

general

as

:

-r

p

;

of the

date

anniversary of the Curb Exchange

President, and Henry H. Baden-

re¬

leased from active duty and have
resumed their activities

tion

elected president of the new asso¬

Andrew
been

Exchange, full membership
limited to employees who

of service.

that Major Morris, New¬

First Lieut.

Effective

have completed 25 years or more

burger/ Captain Robert L.f New¬
burger and

Francis P. Reid.

Century Club of the New York

being

Newburger, Loeb & Co., 40 Wall
Street, New York City, members
New York Stock Exchange, an¬

Burgers;

Chris. Hengeveld, Jr.; Martin J. Keena; Jo¬
seph
JKroll; John W. McDonough; Edwin J. O'Meara; and

group,

Curb

S.

Francis J. Cavanaugh;

Exchange have formed a
the Employees Quar¬

new

ter

Louis

Breitweiser;

New York Curb

The Employees of the New York

the authorities al¬

as

quotation board devoted solely to U. S.

ma¬

ex¬

sponse

be

ising in the period ahead for a
large volume of genuine savings
out of income,
«.

action

ground of reduced savings and
panded demand for capital the

this

to be far from prom¬

seem

will

probably; plan to prevent more
a very gentle
tightening of
tales, they may. in time be forced

-

into the business."
would

prac¬

than

contemplated. ! In the

Flash"

as a

First automatic electrical

than

back

earnings
The prospects

were car¬

lower

the" money'! managers

Bear

small

much

period ahead, that experience may
be
duplicated
in
reverse;
for

may

relatively

levels

at first

always

dollar volume and, so far as the
future is concerned, social secur-,
ity programs and the growing at¬
titude that the Government owes

augmented by
fiscal and banking

were;

easy

policies, and that rates

in the lower income brackets have

been

rates

extended

"Quick

v

Government issues, recently installed in the offices of C. J. Devine

turities unduly at the expense of

nomic

groups by steeply progressi ve -tax¬
ation andT by

983

984

THE COMMERCIAL & FINANCIAL CHRONICLE

Ardrey Heads Dept. a!
"Our

Bankers Trust Co.
The
appointment of Alex H.
Ardrey as head of the Banking
Department
of
Bankers
Trust

York

S.

(Continued from pagq 959)

$1,000,000,000
1, and $1,290,640,500 of
1% notes, as well as $489,080,100 of 3%% bonds on March
15, will
reduce the short-term floating debt
by $2,779,720,600, with a reduc¬
tion in deposits in the amount that these
obligations are held by the
commercial banks.
Whether this announcement by the Treasury
represents a new policy in debt management will depend on open
of. %%

by

Sloan Colt,
of

President

Considers British loan Good

Governments"

By JOHN T. CHIPPENDALE, JR.

City, was

announced

on

The decision of the Treasury to redeem with cash

New

Street,

Wall

16

Company,

Reporter

certificates of indebtedness

on

addition to

March

been

has

turities.

of

President

has

tinue

Company

others

since 1930. His
first

t i

o

with

was

o n

In
mer

of

the

Iowa-Des

1922

.

his

gradua ti
the

He

sum¬

and

Vice-

the

Security

Trust

merged with

was

National

First

Bank

Los

of

Angeles under the title of the Se¬
curity First

National

Bank.,

Mr.

Ardrey remained with this insti¬
tution

until. joining

...

the

out

of

of

such

a

to

over¬

the

deal.

con¬

What

-

there

for

orderly
achieve¬

an

economy and the
ment of a maximum volume of in¬

.

cash cuts down

the

of

special

character,

r
amounts ;• that; have '
allocated
by. the Export-Import Bank for this purchase.
A
exceed

r

the

been

There is

•

further aspect of the

a

Export-Import Bank'about which
I

•

have

which
even

several

gives

our

times

spoken/

foreign

traders'

greater concern.

I refer to
the willingess of the Bank to
make
loans to foreign nations which bar

.

.

.

.

.

Savings Bank of Los Angeles.

This bank later

the

National

became

of

President

Moines

then

.

.

for

delivery

<

special work
in the Iowa National Bank (now

Bank).

alternative

prospect is
the reestablishment of

sold

in the program.

of

'

...

did

he

on

.

Commerce,
New
York,
during his col¬
lege vacations

H, Ardrey

clusion

We must not

out.

the

world

March maturities

machinery

contracts
and

ternational trade,, until the rela¬
access by our
foreign traders to
floating debt which is a favorable development and should be tionship between the dollar and
their old distributors and
agents.
the pound sterling—the two cur¬
continued, since the short-term debt is still too large:
;
There
On that subject the 32nd
National
seems to be agreement
concerning the reduction of the floating debt rencies in which the major part of
Foreign Trade Council declared it-but differences of opinion exist as to the method to be used
world trade has been conducted
to ac¬
self by recommending the withcomplish it.
To the extent that the securities to be retired during for the past century,—has been re¬
trrawai of the United States
Gov-A
March are owned by non-bank
investors, the cash resources or established on a sound basis.
ernment from
purchasing for ac- 'A
deposits of these holders seeking investment Will be increased by the
Quite; apart from the natural count of
foreign governments, and
amount of the redemptions.
'
feelings of friendship that exist the
discontinuance of those pur- A
between the two great Englishchases /by foreign missions and A
DEFLATIONARY IN PART
speaking democracies, the com¬
agencies which tend to obstruct A
With reference to the commercial
banks, which are the largest pelling arguments for Britain is the channels of
American trade A
owners of the called
obligations, the redemption of these securities that country's outstanding impor¬ and
distribution.
As Dr.
Henry A
will be deflationary, since it will result in a decrease in
Government tance as a great center of world
Chalmers of the Bureau of For-A
securities and Government deposits, or war loan account.
trade and finance on which
r
many eign & Domestic
Commerce points /
The latest available figures (Oct.
Witnout out in
31, 1945) on ownership of the other countries depend.
Foreign Commerce Weekly /
issues to be paid off on March 15 shows that of the called
1% notes a freely convertible sterling there for Nov.
10, it should be possible
and 3%% bonds, which together total
$1,780,000,000, the commercial will be scant hope of achieving the to deal with those
governments A
banks held $1,138,000,000, savings banks
$13,000,000, life insurance multilateral trading system which which have been forced
by war A
companies $57,000,000, fire and casualty companies $21,000,000, other has been the traditional goal of
conditions to establish purchasing A
investors; (including Government bond : dealers) $397,000,000, and this country. » Of no other cur¬ missions
here, ; without radically 1
Government agencies and Federal, $153,000,000..
rency save the dollar is this true
•
•; :
;
:
changing our traditional methods /
'AA ..The paying off of holders of these securities other than Gov- A to anywhere near the same extent. of trading or our established comNot on the basis of sentiment, or
ernmental agencies and Federal and the commercial
banks, will
mercial policies*. While I do
not;
A increase their; deposits; by $488,000,000, a not too substantial A of looking backvvard,v but. on the
like state trading, ! am inclined to
/
basis of our own interest in world
A amount. A A1©/: ;;/A©/AAAAV:<■ • AAA ;A//./AaA::©/A AAAc.A?;©>/A.',
agreement with that conclusion—;
trade recovery, the British posi¬
with a single,: important exception. *
A;; With reference to the %% certificates of indebtedness, out¬ tion is
wholly exceptional. There i am not
standing in the amount of $4,147,000,000 ,of which $1,000,000,000 will
willing to acquiesce in •
is no proper analogy between the
be paid off in cash on the first of
the purchase by any foreign gov- /
March, the commercial banks held case for Britain and
that of any
ernment with funds loaned by
$2,548,000,000, savings banks $24,000,000, life insurance companies
us, A
other country.
'
1
of trade-marked goods, or goods:
$48,000,000, fire and casualty companies $30,000,000, other investors
in which servicing is a
(including Government bond dealers), $641,000,000, Governmental
factor, if;
•(.Loans to Other Countries ;"A
the manufacturer must turn his agencies and Federal $856,000,000.
A The commercial banks again
A A natural arid proper inquiry is:
in this case will be the largest losers of this
back on themi at the pier.
We A
obligation. : Y.
—What further loans are to fol¬
have developed in this country a
'AA;:'A Undoubtedly at the present time the commercial banks are
low? : Certainly, only those which
sales
i
promotion - technique,—ad-;
f; much larger owners of the called obligations than is shown in
are gauged to our
ability to supply;
i -the latest available figures on these holdings, since it is indicated
ver.tising, servicing, financing and A
goods,
materials
and; manufac*
the like—which has been a potent:
i
that the deposit institutions have added substantially to their
tures, as well as to the necessities
factor in expanding domestic mar-I
position in these issues since last October. Y.. AA-AA---:.;
of the borrower, and to his
AAA'
ability kets.
Many of our manufacturers A
to repay them ultimately in
goods, ^nd traders had learned how to
NET EFFECT'A A
A
material and manufactures, that
employ this technique overseas,
'While the debt retirement program of the Treasury will result we can
willingly and advantage¬ and it
has been an equally potent /
in a decrease in deposits, in
reality the Government is paying back ously receive.
factor in developing overseas de-A
part of the funds that have not been used and which were made
} Such loans should be made by mand for our goods. ; I regard it A
available to them through the,
over-subscriptioq. to the Victory Loan. the Export-Import Bank which is as fatal to the
These funds were obtained by the Government through the sale
concept of our ex-;
under
legislative instruction to
of long-term high coupon obligations to ultimate
panding foreign trader to "which A
investors, with the make loans
generally for specific our);whole foreign economic pro- A
help of bank credit and the purchase by commercial banks of out¬
purposes. A For eign traders have
gram
is dedicated, to have im-A
standing eligible issues. Y
While the debt burden will be reduced
been expressing some
doubt of portant world markets barred to
A
through the coming retirement in cash of matured and called secur¬
late as to whether the Export-Im¬
our foreign traders, and the door
ities, the cost of obtaining the monies that are being used to carry
port Bank has sufficiently protect¬ slammed in our face, even
out this operation was about 2.10%, compared with a
when/
saving in debt ed
their
interests
in
its
loan we are
supplying them with the/
charges at a rate of approximately 1.44%. * f .
procedure. Announcement of the goods and the
money.
:
;
The refunding of part of the March certificates with similar
consummation of a loan has cus¬
;
Before
the
Export - Managers
obligations having the same coupon,
indicates for
iime
tomarily, been made by a press
Club of New York, Mr. Herman
A being at least no* change in the coupon rate of these obligations.
release by which foreign traders,
;A Whether short-term rates stiffen or remain unchanged, will A as well as the
Edelsberg, Special Counsel—For¬
general public, are
be determined by the action of
eign Trade Sub-Committee of the
"Federal" as to whether or not
informed of the granting of the
y they replace the reserve balances that will be
Special Committee of the United/
lost by the menloan, in general terms.
Traders
States Senate to Study Problems A
ber banks in the refunding.
inquire whether either the Ex¬
of American Small Business, is
port-Import .Bank or the Office
MARKET REACTION
of International Trade Operations urging the development of a divi-;
sion of the Export-Import Bank to
The first effects of the refunding
program in the bank eligible of the Department of Commerce
aid the small exporter.
section of the government bond market was reflected in
Is it not:
a demand
might not indicate in detail just
for the taxable issues maturing from 1948. on
through 1952.
"A. what goods are to be bought, with incongruous to suggest that the A
These obligations moved up to and in some
Export-Import Bank should de¬
instances through their whom to deal, and where. Also,
best levels of the year.
velop facilities for the small ex¬
There was a noticeably good demand for traders
inquire why there is not
the 1948, 1949 and 1950 obligations
porter while it pursues a policy
A tightening of short-term some means by which
they can re¬
rates
of foreign lending which excludes1
would
decrease
the
demand
for these
intermediate
term
ceive
a
commitment
from
the
our foreign traders from markets r,
obligations.. YY: :r/-:A^:Y:AAAAAY;A:A,>;> AAAAAAAAAA;A',AvA>yA; A
Bank that they will receive pay¬
'For non-bank
Are we, by
investors, the refunding policy adopted for the ment of the money that the Bank once open to them?
March maturities has done
nothing to help solve their problem. AY. has agreed to loan. As it is now our own lencung, to finance the
Although the Treasury could at any time change its
present procedure traders have no means of knowing extinction of our foreign traders? ;
and refund some of the certificates with
long-term restricted bonds,

of

Alex

look

who

the

their

manufacture;

,

worked

opinion that long-term obligations to be
of

whether

the

the

after

the

The retirement

n

National Bank

and

of

are

been

not

to put our

reasonable

cash

use

come

believe that the government will con¬
balances to decrease the floating debt, while

some

to non-bank investors will be used later

banking

connec

to

are

has

support solid¬
ly behind the plan- that has been

by ''Federal" and the handling of the June ma¬
./. YAA;'A/
..'A
AAA- • AA/'
"
"•
AA''.:

There

Bankers Trust

modification of the

patiently considered by the nego¬
tiators, and I suggest that the time

market operations

Vice-

a

or

arrangement which

...

the Bank. Mr.,

Ardrey

Thursday,- February 21, 1946

■

.

.

.

Banker's

.

.

,

Trust Co.

He is

a

native of Texas,

attended A HotchkissSchool
was

arid

graduated from Yale in 1921.

He is married and has three chil¬
dren and makes his home in
New York.

'

Rye,
.

,

.

A© EQUIPMENT
CERTIFICATES
■■

•■■■'V,..

,■

-

A,

•

,;v

-

'

A////

.

.

Offerings Wanted /'a
Immediate

firm

bids

on

practically all issues.

.

.

,

.

Weekly List

Gladly

furnished

upon

request.

.

,

Semi-Annual

.

Valuation and Appraisal

Complete dollar appraisal
issued each June 30 and
December 31.

.

.

.

.

....

Monthly

Special
Appraisal
or

Our experience and facil¬
ities at your
disposal.

such

a

course

ingly it would
ing funds idle
Issues. Y

Y

of events does not

seem

to be imminent.

...

Accord¬

this method of

that ultimate investors have a choice of
keep¬
putting them to work in the presently

appear
or

in

outstanding

A

AA

A AY'

-

INCORPORATED

large,

*

managers

.

PHILADELPHIA

to

seems

be

want, that

.

can

.

only

one

conclusion

to

draw, higher

If a 2% yield basis is what
the money
be attained in the not too distant
.

future,

by doing nothing that would increase the present
supply of these
bonds.
;
Y
AY
A y/A'A- A

Pennypacker 7330

...

NEW YORK CITY

A"

A;:';© ;

..y©y-■. A,©©

©

■// A'. AY©///''1 , A

,.;j'

New all-time highs were made by several of the
restricted obli¬
gations after the refunding announcement was made by
the.Treasury;.
Some profit taking the early part of the week retarded this

private wires—

up-i-

.....

Philadelphia,

New

York

ward trend.

Teletype—PHLA 296 & 297
-

1--

.

.

.

;■

*

'

-1. r-

A A".' A

:,v-

'

.

AA

The sharp criticism by the Federal Reserve
Board, of debt retiref
ment with Treasury cash balances in which
they pointed out that .!

■




I

'.!»«». *.

».J * .-if.,. «.;* • «*•

>

iff *9 4* mi**i

j.f-r*

handling the debt problem would be more inflationary
increasing the debt by selling securities to the

than

CANADA FALLING IN LINE

J.

A'AvA.A\ Aj;

•

PROFIT TAKING

REctor 2-6528-29
Two

there

prices for these bonds.

effect

public, indicates a cleavage among the monetary authorities. . AY
Despite the indicated dissatisfaction of "Federal" with the present
policy, it is believed that the ideas of the Treasury will continue to
prevail, as the Central Banks try to convince the Treasury of the
soundness of selling bonds to ultimate investors.'. . .
;
"
/ /\ 4

A'A.

Since the Treasury has done nothing yet to increase the!
supply of these obligations, and funds seeking investment
are still
vi

STROUD & COMPANY

its

j

,

Victory bonds indicates a
issues of long-term

uptrend in prices of Canadian,

reduction in the coupon rate of future

obligations in that country.

Victory Loan 3s issued last Fall, now shows a

obligation of somewhat below 2.65%/ which
lowest

/;A//'fY/':A'v :/AA

A; A A:A"

The substantial demand and sharp

.

.

.

is believed to be the

yield ever recorded for long-term Dominion
Future

rate of

issues, it

The price of the,

yield for the 20-year,

obligations. Y.V

is indicated, will probably bear a coupon;

2%%or lower.

..

.

v:

A;- /' A

v

Y'.f-J/aa;/;AAyA

Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4466

for us,
sprees

on

Canadian and U. S. Industry
(Continued from page 961)
often

By what means do we-qualify
great blessings?
One
decade
earlier, the first
World
War had
literally pros¬

belief
became
something of a slogan in Canada.
Maintaining that > the Canadian
Pacific sought only to serve and
to be recognized as a good citizen
of Canada, Sir Edward claimed
that, whatever is good for Cana*
dians in general is good for the
Canadian Pacific—and conversely,
expressed

for these

trated
1919

That
could

well

>:

■

become

the

of

America

do

not like

think of

to

war-torn

The

be

must

a

millions,
from
Tiflis to Bremen, then suffered.

we

trade

I

what

following 1919,
progressive break¬

years

was

down.

I sub¬

ours.

should begin by recog¬
nizing that whatever is good for
mit,

of1 theirs

zeal

no

" "

four

there

Hunger
Shocked

and Americans saw
starvation of chil¬

save.

For

changed,

1946.

by

whom

could

-

slightly

slogan

dren,

Canadian

is bad for the

general

death

ways,

many

multitudes.

Englishmen
the

In

resembled

dominated

whatever is bad for Canadians in

Pacific, also.

Europe.

of

condition

America

good for the chemical industry—
that whatever is bad for the trade
of America must also be bad for
the chemical industry.

our

this
just a truism. Our conduct for
generations past has flagrantly

'

over, because the producers in our
basic
industries
were
thus
im¬

Do

been. :* There

our'farmers

not, I beg of you, call

violated the dictum,

for

<

Let

look back and ask

.us

itself.

some

special in*

interest in

lifted.

the welfare of us all?—and whose

terest?
r
a

'

**

-

*

-

-

:'

of experience,of
is A very limited. ^1 If$pw
quite intimately the little capital,
Ottawa—the big capital, Wash¬
ington, I merely learn about from
hearsay. But my friends on your
side
of the border, who know
both capitals, V tell < me the ; two
cities have much in common.
I,
x

My

range
•

of

therefore, make bold to speak
both capitals in

.

like language.-

:

.

your
the time even of our

the credit -— perhaps most—be¬
longs to that despised and reject¬
ed

his action

Governments are obviously not

in peace time, at get¬

made

Germany:

<

,

'

i

Nevertheless, it would be crude
"and misleading to picture all of
our

miseries,

in

the

for1

1930s

examples, as resulting from trade
restriction. There are other ways
of killing commerce, besides the
technique of strangling; and in¬
dividuals, as well as governments,
have helped to kill it.
*

r

Our

collective action in block¬

ing trade channels, by means of
your 1930 tariff and our 1931 tar¬
iff, could scarcely have been fol¬
lowed quite so soon by the dis¬
aster which ensued, if we North
Americans had not, as individuals,

'

already behaved in suicidal fash-

S'-";.

ion.
•

It

is

a

familiar,

+

'•

•

."(

and

yet

a

strange story.-Let me recall those
.

bygone times, the five years from
1925 to 1929, when trade flowed
in great volume across national

boundaries^ W'-.er. : this
entire
planet of ours enjoyed peace and
something like prosperity.




V back

looking

■

of

seeming

export
same

In the
and

tc

main

two

I

—

tribes

with

quite

oi

coefficient

the

exports

your

peacetime are scarcely more^
5% of your national income.

this

episode,

know that most of the
money
thus loaned was quickly
lost.
A cynical friend of mine,

There

to believe that the

son

well-versed in such matters, says
it is the function of capital to be
lost anyway.
That, he claims, is

illustrated

just what capital is for.

That

in

Let
a

us

the
that

term

the

"lost."

We

lenders

our

er

of

use

ofthese

these
figures is
of degree: that basic¬
.

economy.

us
in Canada, there is
nothing novel in the dogma that
prosperity depends on exporting.

vast

break

understood truth, in Ameri¬

ably prosperous.

huite comfort-*
'

connection

of exports

Canada

Just for

the

Not

available,

both

of

in

both

prosperity

the

is bound to reflect

to national income.

Therefore, I suppose it would
surprise most United States-Amer¬
icans

the

ship

ex¬

to

actly

between your exports and
national income, as there i$

your

find not only that with

each variation

States

exports

your

tele¬

Canada's

this.

the relatively small proportion of

ports and of Canada's national in¬
come,, we

less than three find oc¬

problems

United

between

me

ahead

learn

part of the story.

kind

Still

in

the

are

But

in

real
from
1925
onwards, the American capitalist did the
pump-priming—and on a
a

very

between

Dominion's

our exports and our
naj
income; A In your case,

tional

exports' and

..

the

observable

closest

relation¬

In other words, during the same
inter-war period, for which I gave

ship is between exports in a given
and income in the next year.
:
Technically speaking — mathe¬
matically speaking—the national
year

the results of

a Canadian exportr
analysis not man^
g o, : comparison
of
United States exports and United

and-income
moments

income in year

tion of

(n-f-1) is a func¬
exports in year (n).

our

is

differential

a

a

States national income shows the

following:

relation¬

t

.

v

This

of two

say,

technically, your national in-

!

series; and for other series

whose movements are not identi¬

(Continued

I

•

advertisement appears
nor

-

pump

in

same

Europe,

America. For it

was

time

and

on page
r'-*\

offer to sell
%

1

{

—

r

+

.

'•

..

,

"

i*

L

i

to

or more

1929.

'j

»-

<

■

Corporation):^|l;||^|i|p

I,,'"'.

t,.'-i

^V.

,

".'0

'

' t'Vi

(Par Value §1.00)

4 :+

":

-

t

MBmPriee $1.75illlfl||ll||

:ii :'v

in

'

170,000 Shares Common Stock

n

one

one

Freight Corp.

<A New York

the spenidng

borrowed

money

prosperous.

made otply by ,the Prospectus.

Hoosier Air

North
job of
global

from

the

teeming (and in* some cases, for¬
merly penniless) industrial areas
of Europe, on wheat, meat, sugar,
wool, cotton, hides, timber, miner¬
als and so forth, which made our
primary
producers
prosperous
one

an

securities;

NEW ISSUE

sense,

North American capitalist, by the

1925

to buy any of these

offers

-'

5

at the

from

neither

matter of record only and is

a

The offering is

fact, the fellow primed two

pumps

of

as

solicitation: of

a

scale.

In

And this,

at
all

made us
Make no mistake—

removes,

ex?

in¬ must admit, it is less close thai
(that in ours, r But there-is the sam<
is, of course, just what one would time lag—and that is what matter^
■'••
•:.
expect); but also, curiously, that most.
j,

Time (if I may coin a phrase) was
that child of misfortune, the New
Deal.

is

relation-*

who

among us

of

Womb

of

ship, somewhat difficult, of ' ex¬ y With each variation of United
may be depended on to challenge pression; but of its existence, there
States
prosperity, both exports
doubt whatever;
this contention.
Their claim will is no possible
and income rose and fell in unibe that it just oyer-simplifies the and its closeness can easily be
Moreover, the closest ob;■
j
; son.
story.
They say that so small a measured.
percentage of, our production ort :• Ours is an assemblage in which ! jservable relationship is between
this continent is production for all know the technique of correla¬
(exports in a given year and in¬
export, as to make unconvincing tion: -j- or — 1.00 is an expression
come in the next year.
That is to
and even incredible the chain of of identity between the movement
Some, there

Not yet had the valuable con¬
ception of pump-priming been
created.

there

that

same

and fell in unison

come rose

This

and

Secondly, the North American
capitalist gave us in America new
strength and courage.
•
,
t

|
Onq

think'of
in these United
States. How large a percentage of
your employed population is to be
found in export industries, I do
not know.
But clearly, the pat¬
tern of-job distribution in these

formula.

a

from

find it

we

do most people

so

your

and national

simplicity, let

this in

no

for

reason

During
period in which statistics are

scope

inclusive,

cupation in our export industries,
you do not need to be told the

'

prosperity,

'

-

the

volume

comparing

income

statistical- fact.

a

to

merely considered as a fact of
statistics, you may find it arrest¬
ing enough.
This
figure suggests' that in
Canada, the first thing when plan¬
ning for prosperity should be the
motivation of our export indus¬
tries.
And when you know that
of each eight employed persons in

rea¬

difference

IF For

grant

may

and

1923

must approach it as an economist,
if one desires an explanation. But

ally, the role of export trade is
same in your large economic
system,! as it is in our much small¬

:

recognize, nevertheless,

certain crudeness in

by

one

is

re¬

j
from

national

1939

is

is +.923.

the

merely

inclusive,
with

1924 to

than

is, nevertheless, good

meas*

is

correlation

them

different, if only because in
peacetime Canada's exports are
equal to 25% of her national in¬
whereas

of

1938

be

come,

both

markably high. ;'
Taking exports

on

Their attitudes must

eyes.

of

possible, and
with a time lag of One year from
exports to national income, the

Canadians and United
:
■
^
,<

problems

of Canada's exports
national
income,

case

Canada's

urement

be?

mean,

us are accus¬

during the period in which

here, to distinguish

Naturally, they do not look

.

on

There is

There is literally no

to that

more

*

'

then went

made loans.

production
:

decisive.

just lent Europe lots of
He
waited- until? : the
Dawes Plan was implemented in

Instances abound in
which goods are not being pro¬
duced, because the government
has

was

money.

production.

unprofitable.

We,

p,,.

the

the

Statesers.

why!" Drilled by their investment
bankers till they moved as if on
parade,
these
heroes
of
Wall
Street and Uptown charged upon
,

risk

.

pause

1.00. All of

■—

He

ting goods produced: but even the
least efficient of them can impede

of them

tween

Of them, it could be said
language of Alfred Lord
Tennyson: "Theirs not to reason

their doom.

the

North Americans

such

Firstly,
the I North i American
causation which I have suggested.
capitalist put Europe on her feet
And as we shall see, taking the
again—and mark you, by means
of a very simple trick.
;
t.,~y +

selfish mi-

norities, and at the cost of us all.

concerned

of

m,en,-the North American
capitalist. Both here and abroad,

'

much good,

to this

question is not the sort of thing
which makes one popular in 1946.
For if the truth be told, much of

liberate restrictions upon trade, as
rule for the sake of

J">

,»

To give a correct answer

pressed
for their individual and sometimes
secret I objectives,
as
often to
smother the:discussion ofwhat is
good for America.. The natural
result has been a series .of de¬
a

<At

the

in

academic plane.

an

between

large

no

on

digress, I

doubts,

means

for this amazing miracle?

Sir John A.

National Capitals have so

.

at

-f or

tomed, in our daily lives, to judg?r
ing by means of correlation co¬
efficients
the
significance
of
measurable relationships.

-

something to be said for at least
looking at it on that plane tonight.

i

Happily: for mankind

at home

MacDonald, who flourished earlier
than McKinley—lobbies in both
;

it

this grand

just then, the lenders felt

most

"of

all.

us

thorny prob¬
theory. Some¬
time, therefore, we must discuss

,

that,. from the -time of
President McKinley—from

I • say

X?

on

the

cal, the degree to which they fall
short of identity finds its reflec¬
tion
in
some
figure • less than

lems in economic

America, meanwhile, can history. Not yet embalmed in
brought back to prosperity. our text books, it will surely some
The primary producers whose lot, day be recognized
.everywhere.
•
ever since the post-Armistice in¬
This man says we North Ameri¬
flation collapsed,
had been far cans have never
truly prospered,
from
easy,
renewed
their
ac¬
except when our exports were
quaintance with "a seller's mar¬
largely given away. The five years
ket."
Disposing once more at a from 1925 to 1929 were as
pros¬
profit of their crops; and live¬ perous as
they yrerC, because we
stock, their minerals; land lumber could then
export on a' trulytmagand
fish, they too ' could again nificent scale!
And our exports
spend freely.
The rising stand¬ in turn were sustained
by the
ard of their consumption ener¬
capitalists among us who, lending
gized the manufacturing and the billions :
abroad,
managed
ulti¬
service y; industries.
Unemploy¬ mately "to lose their shirts"—as
ment in the
cities was rapidly
the phrase goes—but who did in
mopped up. I At last, all was for the meanwhile enable our custom¬
the best, in the best; of all, possi¬
ers' abroad to conSurfie American
ble worlds.
'
:
goods on such a sqale, .as made
What or who deserves the credit
most Of us

Perhaps there are United States-

;course,

that interest

scale could be collected.

whole, it is indeed

a

importance to the future of
It -raises

whether the loans thus easily sub¬
scribed could be repaid. Nor were
we sure

as

small percentage. •
This difference of opinion is

a

were

For my part (and speaking as
Canadian-American) I cannot.

Americans who, can.

continent

j

....

Millions in

primary political purpose has not
been to lobby for that special in¬
/

X

,

-condition
was
reversed: sums, which lubricated trade so
In our conditions, its truth is ob¬
the
'19-20s,
Among the people on both con¬ generouslyduring
vious. If anyone does desire proof,
tinents, a strong revival occurred. mostly failed fo get their-money
look at the pattern of our job dis¬
Millions in Europe, long haunt¬ back. From the standpoint of these
tribution from Vancouver to Cape
ed by the spectre of starvation, private persons, it was and is in¬
Breton. So many Canadians have
could again eat enough. Raw ma¬ deed lost—just as completely gone
invested their lives in export in¬
terials appeared, and the factory from them," as if they had given
dustries that short of an economic
chimneys began to smoke again. it away.
revolution, which would be very
Gradually the scars of warfare
But
my
cynical % friend
also
were
effaced, and - hearts were points out a curious and by no painful, we could scarcely hope to

Can we name any¬

possess

of the greatest

this

our-?

terestr apart from its,

one

profit'.'He put out his money
—poor chap!—for an expected six,
seven, eight or more per cent.
P
Some of us doubted, even then,

unable to

,

a

itself to

were

employment: ' ;
Then,
approximately
during
1925, both in Europe and America

great American industry
Which has not speciously believed
where

among

find

selves, in especial reference to
trade policy, what has been hith¬
erto the mainspring of our con-f
duct? You know that the question
answers

miners,

lumbermen and fishers. More¬

industrial workers

that what is

us

,

.?

and

among

poverished, millions of American

all collectively will
probably be best for us all indi¬
vidually. \ '
xv
*
: '
- -J v i

good

distress

was

was

pa ted

was

also far from! what it should have

it

in history.*

Not purely for God's Glory did
the North American capitalist act
thus. . His was the lure of antici*

985

'

-

-

'

Copies of the Prospectus may he
■'

..

;

V

"

""

...

.

;'i-'■:

:

J.,-: •••

•

'

i

.

•

»

obtained from the undersigned.

-j..-i

•>

.

i

Donald Young & Co.

ri.'■ •'»

'

i

'•

986) f ir

j i--,?

THE COMMERCIAL & FINANCIAL CHRONICLE

986

permit any large scale population
outflow.

'

*

The Effect of

;v

Foreign Trade on
Canadian and U. S. Industry

During the past; week market
strength was well sustained espe¬
cially
S By

in

the list.

BRUCE WILLIAMS

ternal

the

of

section

internal

Buying of Dominion in¬

bonds

this

on

of

side

Thursday, February 21, .1946

the

(Continued from

the late Dr. Stephen Leacock at last ap¬ border has become an important
come in year
(n +-!l) "is a func¬
threshold of probable realization. His conception of factor in the Government bond
tion of your exports in year (n)..
Canada as a neglected land of vast rich empty spaces capable eventu¬ market in Canada, and has acf
The
difference.. between your
ally of sustaining a 100 million population, until recently, was centuated the movement towards
The visionary ideas of

pear

considered fantastic and illusory.-

coming
itics

the

potential dimensions

lower

-

have

be-?

sweepingly

cancelled

Instead

tended Canadian frontiers.

This

ing some 200 miles north of the
border,' Canada in a few short
years
has pushed; its northern

importance

vital

Dominion's

northern

regions.

factor

cant

tween

What

MARKETS maintained in
all classes of Canadian

external
4 bonds.

and internal /

and

' ■* *

'

>

}%

-

Stock orders executed

on

the Montreal and Toronto

Stock

Exchanges,

at

or

net New York Prices.

and the

frontier?

a

this

In

also

"sell-out"
With

Alberta and the fertile valleys of
Northern British
Columbia also

ment.

Montreals
strong in anticipation of
of

par..

forthcoming

of : the

$87 million new refunding issue.

the

Northern

regard to future prospects
reason

to foresee any

immediate change

in the present

there is

great opportunities for tre¬
mendous ■■■■". agricultural 0develop¬

Buffalo,

Albertas staged a
and the 3%% non-

issues traded in th^

new

neighborhood
were

which

in> Nationals

good recovery
callable

profit-taking was

some

strong

no

trend.

However,

markets

investment

in

before

now

little book

a

deservedly forgotten. Speak¬
of

ing

the

climax .to

that

great

boom, which continued from 1925
to
1929, I wrotef in my little

lationship,

book

tion

compute

we

a correla¬
We should nat¬

coefficient.

urally look for

difference.

a

Bear-

ipg in mind the fact that exports
bulk five times

large, compared
with Canada's national income, as
they do compared with your na-1as

V-

"Vast

sums

Even Canada

lent

were

abroad.

became, for

time,

a

an

exporter of capital to other
countries, The money so lent, by
those

countries

which

could

port

ex¬

tional income, we should, I think,

capital,, to
those
needed loans, financed the

expect quite

exports by the lenders to the bor¬

striking difference.

a

What is it that
refresh

me

do find?

we

Let

memories

your

by

quoting again the coefficient ap¬
plicable to Canada.
That: figure
is

-f .923. ;nThe corresponding co¬
efficient, when we make a parallel
calculation* with your trade and
income

statistics, is

-f- .890.

conclusion is that if

be

to

calculated

American

Canadian Arctic

but

thb

generally firm

were

evidence

in

offer

Direct Private Wires to

Externals

v:

eased slightly.

of

and

free market.

ne¬

.

Shield,

one-way

can
market in Canada

inhabited

district

River

be¬

Registered
be sold yiri

develop.

the resultant exchange sold in

is

Laurentian

Peace

a

however,

the broad

illogical that a
vacuum can long persist. Not only
does this area comprise the major
portion of the uniquely mineral
rich

difference

times

can

bonds

recog¬

empty areas

present

new

It

•

such

at

trend

signifi¬

this

the

*

were

time—in

upon a

experience and ours appears only
when, in order to measure this rer

a

although

of the vast

between; the;
zone

in

few bonds

registered and an un¬
registered bond is quite important.
In
a
weak market unregistered
bonds can only be sold externally

nition of the potential possibilities
of Alaska, and the necessity of

population increase
glected outpost. s

worthwhile formality was

Nevertheless

/outposts,

belated

|

actually
registered when the right existed.

of; the

Another

the

is

in

re-sale

.

that very

Russian development in northern
Siberia
places further emphasis
on
the future importance of the
Arctic

ultimate

little understood in this country

so

frontiers to the Artie Ocean." The

of, the

for

Canada.

military expedition "Muskox" il¬
lustrates the growing recognition

bonds

moverpent the For¬
Exchange
Control V' Board
the privilege of regis¬

tration

of a. narrow inhabited belt reach¬

Canadian Securities

Canadian bonds.

on

ex¬

are

eign

air--' transport

of

progress

yields

To deter this

Geopol-^

apparent.

more

and

;

-

Now however the Dominion's vast

985)

page

once

the

on

for

continent

were

North

the

as

The

•

figure

a

result, would indicate a re¬
markably close relationship be¬
tween

this

year's

exports to the
people of other continents, and
next year's income here in North
America.

By

the

guess,;,

my

rowers.,Money was lent from
nation to nation in such enormous

quantities, that; the -transfer of It ?
literally dragged our goods over
the rising tariff barriers of
neigh- ;
boring countries; thus to some ex¬
tent defeating, or at least defer¬
ring, th<5 ^success of nationalist
policies in strangling the world's
trade.

"But

whole,

a

the

Earlier this evening I suggested
that we look at our problem on an
academic

plane, at least momen¬
tarily. What we really need is ah
explanation, in economic terms, of
the causal relationship i reflected

what happened in 1928
1929, * at the final boiling of

and

■

the speculative pot in Wall Street? $
That is no
mystery.;; Then oc¬
curred
the
final frenzy, which
to shake civilization.

was

"Men

co¬

efficient indicating this would be
just about + .900.

which
sale of

ly* rich
Men

»
*; •'
growing fabulous*

were

on paper

—

every

day!

were

growing rich, not be- ;
they had contributed to tbe 4
welfare ' and happiness of" man¬
kind, but because they Had bought
cause

Nickel

or

ers

U.

or

General
S.

Steel,

Motors, Smelt¬
or some of a 4
■<>
;
IV *

hundred other stocks.

general

"We decided to do likewise. The '•

virgin discount a still lower trend of in¬
I do not attempt any such thing whole world decided to do like- %
forests, rich hard coal deposits, oil terest rates we: are likely taeriteT
There was such a flood of
tonight; but I do bring to your at-* wise.
and
minerals
await " only
the upon a period of consolidation of tention a
monograph of recent money from the channels of or¬
necessary manpower for their ul¬ the
existing level. ■
origin, which does explain. It is dinary business-, into. stock' speeii-;4
timate profitable exploitation.
>
by Dr. Amos Taylor, Director of lation as ' the world had never
same

area

,

Toronto and Montreal

f

Dominion Securities
Corporation

When

one

considers the count¬

less disillusioned millions in

40

.

Bell

..

l

•

"

?

System Teletype NY 1-702-3, f

and

land

Exchange Place

''V "V4 New York 5, N. Y. IW':i

Europe
colossal

opportunity the

of

this

few

hundred

fers

CANADIAN BONDS

of

raw

sufficient

ONT., CANADA—

TORONTO,

miles

change, and Winnipeg Grain Ex¬

change, announce that they have
acquired the brokerage business
formerly conducted by Colling &
Colling. The new firm will be lo¬
cated at 330 Bay Street. ;i. >
j;

to

far-seeing • industrialists in this
country. What new horizons are

Harold A. Prescott is

proprietor

discernible whenever for example
the St. Lawrence Waterway proj¬

ager;

Northern Empire ceases to be an
empty wilderness? Whether Can¬

PROVINCIAL

of the firm. Associated with him

ect is consummated and Canada's

GOVERNMENT

manager,

will be J. L. Lennon,
and

office man?
A. A. Ferland, statistician;
K. A. W. Sutherland, sales
'

<

'

■■

:

mate
on

CORPORATION

quickly realize her ulti¬
destiny will largely depend

the wisdom of the Dominion's

Celebrates 7E Years
The Sun Life of Canada is cele¬

-

The Position

of

1871 from

the

1895,

was

discussion of inter¬

est to investors in Canadian

Internal payment securities.

In

limited

A

NEW YORK 5, N. Y. ;

NY-1-1045

V-;

number

available

on

of copies

.

request,

Brawley Cathers and Co.
25

King St. West

-

TORONTO

of serv¬
issued in

years
was

small office in Mon¬

extended

:

the
into

organization
the

United

States, where from coast to coast,
now maintains a
highly efficient
branch office and agency service.

it

In 1895, at the end of the first
twenty-five years of operation, the

in

assurances

TWO WALL STREET

RECTOR 2-7231

A critical

a

treal.

INCORPORATED

The

My real

*

/

"Ten

Per

;

v(

in digressing,

purpose

as

I have done about coefficients

of

correlation,

sible

to make pos¬

was

"From

$35 million.

force

At the

amounted

end

of

to

fifty

years,' "they had,'grown' to $488
million; and today after seventyfive years, the Sun Life has well
over

million

one

policy

and assurances in force of

372,327.

money flowed as fast. i:;
great tide of European money ;

A

flowed from

Finally,

enough

money

Industrials

—

Banks

—

;

Province of;Alberta
V

world broke down.-

capitalist, by
in

and

North

American

of

means

many

loans, earned much of the credit
? putting
Europe on her feet
again —and incidentally to this,
gave an immense stimulus to busi¬
ness in America.
V i

to New

sea

holders
$3,390,^

like the Prince

and

the

Princess

in the

fairy tale, live happily for
the rest of our lives? Why did the

business
.

'

u

was

>

especially

marked in the case of the borrow¬

ing countries, which, having been f
encouraged to borrow freely, had
borowed like drunken sailors and
had

used

the money to

the goods they

purchase
needed—in a large

The

quoted correlation between
and
national * income

exports
would

lead

us

to

that

suppose

time, for one reason or an¬
other, the momentum of our ex¬
ports may have faltered. ;Tn fact,
some

the

statistical

record

shows

this is just what occurred.
Here I should like, with

that

;

.

*

your

permission, to quote from a state¬
ment
which I made J elsewhere
*Exports from 1922 to 1937 in¬
clusive,

measure

compared

with

"Thus
the

and

—

Sold

—

we

<

flooded

Wall

Street

stock

exchanges 4 else¬
capitalize the profits of
trade, and in flooding the

where to
our

stock markets with

denuded

our money we

the- trade

channels

of

cash and credit: so first
undermining, and then destroying,
the trade profits that we hoped to
capitalize.
"If ever a generation digged a
pit and fell into that pit, it is the
generation to which we belong."
My purpose in reading this quo¬
tation tonight is to bring out one 'g
thing—the smoothness with which
a
quite crude economic explana¬
tion out of an:rold book fits tb^
statistical analysis at whose r^- ;
suits in summary form we looked
a

national

income from 1923 to 1938.

few minutes ago.
Bear

•

taylor, deale
Company

64 Wall Street, New

Bought

United States cotton and

Canadian wheat.

necessary

fun end?

WHitehall

York 5

3-1874

Quoted

in mind

V. 44/44.44^

that the passage

which.

I-just read dates from Jan¬
The two coefficients
correlation
relating
exports
1933.

,

with national income in the States
and

Canada

respectively, which
quoted tonight, were never
calculated
(I believe) until ten
years afterwards, in 1943.
v
The first of these measurements,
I have

the

figure connecting Canada's
with Canada's national

exports

CHARLES KING & CO.
Members Toronto Stock
Exchange
61

Broadway, N. Y.
Whitehall 4-8980

Royal Bank Bldg.
Toronto, Canada

Teletype NY 1-142
Direct private wire to Toronto




;

not

was

world, arid the trade of tbe;

"The breakdown

enormous

ill-conceived

cases

for

&

All Issues

Mines

Bought—-Sold—-Quoted

the

there
left in

channels to conduct the trade of

of

STOCKS

over

York..

the

the

north,

Canadian

have

seen,

and
,

uary,

CANADIAN

south,-west

United States • money flowed.
New.York.i> From north and west,

closer tracing of the course
of events after 1925 when, as we
a

Why did not the process of fer¬
tilizing European and American
business, by means of these large
loans, continue for an indefinite
time? Why did we not all of
us,

Sun Life of Canada

brating seventy-five
ice.
Its first policy

CANADIAN DOLLAR
A. E. AMES & CO.

called

I hope will not again

and

seen,
s

,

immigration policy and the will¬
ingness of European Governments
and the British in particular to

CANADIAN STOCKS

is

it

Cent" Fallacy.

*

ada will

MUNICIPAL

and

-

materials, of¬

inducement

Do¬

Department of Commerce;
published by the Committee
Interng&Qnal Economic Policy,

on

Harold A. Prescott & Co., mem¬
of the Toronto Stock Ex¬

border, with its fac¬
tory sites in easy access to cheap
hydro-electric power and abun¬
sources

and

the-i United

in

bers

north of the

dant

Foreign

it is

Opens in Toronto

phetic vision is easily to visualize.
a

of

Commerce

States

Even the Canada of today devel¬

only

Bureau

mestic

empty

Canada of Stephen Leacock's pro¬

oped

the

Harold A. Prescott Go.

war

wearied

Wood, Gundy & Co.
Incorporated
14 Wall

Street, New York 5

IBell System Teletype NY 1-920

CANADIAN

SECURITIES
Government y,/..

Municipal

Provincial

Corporate

'>■"

income, was published in 1945. To
Canadians, interested
in public
,

questions," it is quite well known.
tMan-Made

Remedies

for

a

Man-Made Depression: Chapter I
in "An Economists's Confession" of

Faith,"; Macmillan,1 ;1935";

,

,

Volume

V

The

-

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4466

163

of these measure¬

second

ments, which relates United States

with United
States national income in year (n

-exports in
-

(n)

year

r4-l), is made public tonight for
•the first time.

.:-

.

Looking backward,

|

we can per-

haps agree that the bill of exchange, the steamship, the rail¬
road and telegraph are mainly to
•be
credited
with
creating
the
complex world market in all of

,

*

/

its infinite possibilities, by means
;of which we were living prior to

•'

1914.

Basically, these four mechan;isms enabled us to bring about an

.

Inter-continental

and

inter-

an

national division of labor, as a re¬

sult

of

which,

world

'rose

broad

of

living

standards

over,

in

mor'e

almost the
the

19th

century

/than they had risen, perhaps in
.a

.

thousand years

previously.

'/■ /because, by design or accident,
'the
distribution
of
purchasing
.

continents; and

V;;• power y between
'-19th

century

these

were

pro-

consumer

I have written of this else-

needs.

/where.

•

The pattern was

.'theless,
/failed

our

and both of
paralleled by the re-

resources;

// ? gional distribution, (of

.

dovetailed

countries of

and

nents

neatly

the

distribution by conti¬

/Into the
-;ductive

in

countries

between

even

familiar. Never

the time we mostly
realize that it was this

at

to

parallelism between the
/distribution of purchasing power,
;• the distribution of productive resources
and the distribution; of
consumer needs, which made pos¬
sible for
our
grandparents and
.'fortunate

/

.parents such an amazing increase
z oi comfort, such a relative abund¬
ance in the 19th century. /////;/

r

///• That pattern was badly cracked

///in World War I. Alas! it has been
-pulverized in World War II.
The smashing of the pattern is

>>•

a

threat

to

the

great

exporting

•industries of North America, yours

-

Charles

of

cluding,

much

So

Franklin

grisly

laid bare at

now

public

the knot of
record is

course,

whose

fascists

Nuremberg

years

rendezvous with

staff

have

icans cannot forget that we

not

do

than

better

cil,

as

is

quick refresher

or a more

Green
for

held

The
the

will be conducted in

course

of

classrooms

New York

the

Institute of Finance for those who
are
resident in the city and by
correspondence for employees in

offices.

out-of-town

trated

series

of

The

lessons

concen¬

prepara¬

tions will only require five weeks.
For those who wish more com¬

and will consist of payment

Exchange

the

to

examina¬

plete preparation the regular In¬
curriculum will be given.

stitute

The

course

will start

about Mar.

15th; however, applications are
being received immediately at the
offices of the New York Institute
of Finance,

20 Broad Street.

C.W.Green

-

takes

the title

over

the

past few years by
Merle E. Selecman, who is giving

the directorship because of in¬
creasing duties.
Mr. Selecman
will continue as Deputy Manager
and
Secretary of the American
Bankers Association, and Secre¬
tary of its Trust Division, and his
relationship as a member of the

up

beginning, between a dele¬
from Whitehall and our
Government.
Our hope is

gation

Mr.

Council.

Relations,

Public

quickly to conclude arrangements
for a loan, by Canada to Britain.

Green's duties will be those of

co¬

ordination of all of the public re¬

loan, we believe, will lations activities carried on by the
British; but it is also various departments of the Asso¬
vital for the safeguarding of our ciation
through the Council.
Canadian export industries.
According to Dr. Stonier, "Mr.
We should have liked to begirt Green/.Was selected for this post
of
his
fine * records as
earlier on these discussions; but because
,

benefit the

instead, gave priority to the nego¬
tiations for your much larger loan
to
Britain, which; occupied so

nomic Development

in which

po¬

much of 1945.

sition he devoted his time to

'N

;//>.■:/;//;/.:/;.'

ours, ; But this is only % the
'/My hope, is (and" here I beg
rprimary - consequence.
Because leave to speak, not 4s a citizen of
■// k our exporting industries (yours one country to the citizens of anas well as ours) are indispensable
other, but as a North American at
; -foundations
of this continent's home among fellow North Ameri¬
/
/prosperity/ the smashing of that cans) that our two Governments
.pattern is a threat to much more will conclude (each, of course, on
;//than our exporting industries. It terms of its own choice) a series
/threatens the living standards of of gtich arrangements, while there

':>« and

•

•

,

Manager

successful

the
ties

was ex¬
tended into the United States where, from coast to
coast,

development

were

.quarters

financed in large meas¬

by local banks. / His experi¬
fits in with the program of
the American Bankers Associa¬

ure

highly efficient branch office

a

of

during which

a century,

wars

have scarred

earth, and mighty inventions and discoveries have
altered man's destiny, the Sun Life of Canada has met
successive

•

.

-

maintains

/ the

ence

tion, which emphasizes the impor¬
is yet time.
/all North Americans.
,
■
tance of helping banks in local
'Paradoxically, while the patFor I know the foundations on
communities to relate themselves
'tern was actually being smashed, which
(whether or not we like it); io"
community life and needs."
.imarked improvements were also our
N orth
American
economy
/. Mr. Green joined the staff of
'. ♦being made in the mechanical arstands. That is perhaps my best
the
Franklin
Square
National
*•// irangements for transacting world excuse; for asking you tonight,
Bank in January, 1943,. after 23
/ ^commerce. The bill of exchange
with me, to look at the wood, as
years of sales management and
,/Is now less in evidence than the
it were, instead of examining the
promotion experience. Before en^
/ /later and more useful bank letter
trees: to believe that whatever is
///of credit. The steamship is large- good for the trade of America tering the banking business he
was associated for
18 years with
superseded by the motor vessel must be good for the chemical in¬
the International Business
Ma¬
/•using oil. The railroad has been dustry—whatever is bad for the
chines; Corporation and
its af¬
marvellously supplemented by the trade of America must be bad for
filiated companies in sales and
.motor truck. The science of comthe chemical industry, too.
merchandising capacities.
In ad¬
.immication is perhaps the most
This last is a point on which, I dition, he was for five years Sales
//completely transformed, and the
metropolitan ': New
hope, both laymen and chemist Manager in
/ imost improved of all.
•:
York for the Allied Stores Utili¬
can
agree.
/ / / / /
,1
We might have, • and but for

now

service. The Company's growth is signi¬
ficant proof of wide public
acceptance. Through three

throughout
whose 'activi¬

State,

it

and agency

towns

in

Empire

small

important date in the Company's

amonj business firms and

merchants

a

1895—an

'/Z^:'/;/'■''/;//////' history—the organization

promotion of ^rehabili¬

tation/and business
work

Eco¬

for

policy from

office irt Montreal/In

York

New

in

Committee

the

1871 THE SUN LIFE OF CANADA

issued its first

the

Regional
State of

/ try

took

opportunities, expanding

on new

end of the first twenty-five

/

life and indus-

as

shapes and aspects. In 1895—at the
years

of operation—the

// assurances in force amounted to $35 million. At the
//end of fifty years—in 1920—this amount had risen to
$488 million. Today, after seventy-five years of public

.

service, the Sun Life of Canada holds

life

among

million

•

/

assurance

a

leading place

companies with well over,

policyholders, and

assurances

in

one

force of

$3,390,372,327. The Company's financial strength
and high standard of service are indeed worthy of the
finest traditions of

a

great

time-honored enterprise.

„

/; these two great struggles we no
•doubt should have at this point a
more
sensitive and a more ade-

ties Corporation in improved mer¬

;]/ Registration Suspended

chandising methods.
a

From the 1945 Annual

Mr. Green is

veteran of World War I.

He is

/ The,Registration of Jerry A. Re /harried and lives at Franklin
/ quate world market than ever be¬
as specialist has been suspended Square, Long Island.
fore, as a direct result of these
immense technological; improve- by the Committee on Stock Trans¬
actions of the New York Curb Ex¬
;/merits. And of course as a result
of that, the life of all mankind change for one week/beginning
Feb. 19th. It was charged that Mr.,
/should also be; fuller and richer
Re had made a bid and offer
when]
; ! now, than at any time formerly/
he had no wish to sell./ The C6m- :
/v A /banking ; group headed by
;. 1/
Instead, your own President has mittee
expressed the opinion that, Burr &

Sterling Engine Pfd.

Benefits

Offered to Public at $10

<

/

.;

•

recorded history.
That is what

/:////;//./' //'

happens When the

pattern is broken—I mean when
the parallelism is destroyed be¬
tween the regional distribution of

purchasing power, productive re*
/sources and consumer needs, re.

the

making of this offer by Mr.'

that more persons are; living in
-poverty/ more persons are Iiter- Re, with the knowledge that a
;/aly theratened with starvation to- broker member was: at his. post
/ day than at almost any rtime in with a customer's order to sell, ef-j

•

/
/

u

jspectively. " ;//

'/;••'/•••/■/,:

:
i
We have already this evening
recalled that after World War I
(and after certain hesitations) the
North American capitalist stepped

in, fancied himself as an interna¬
tional money lender, and primed
the

pump

years

succesfully

for

following which in




five

one

of

member

tain

a

the

prevented

fectually

from

more

broker

attempting to

ob¬

favorable execution

for the customer's order.

/

Co/ Inc., on Feb. 19 of¬
46,123 shares, of 55-certt
cumulative convertible preferred
stock ($8 par) of Sterling Engine
Co.
The public offering price is
$10 per share plus accrued divi¬

fered

dends

Jan.

1.

The

portion of

;

Benefits paid in 1945

$90,226,067

of

stockholders

2/9

Anderson

has Joined The Merrill

Company, in

contact work.

of Mr.

stock held.

Winship, formerly in

the Marines,

copy

and

With the addition

Winship, 24% of the

agen¬

cy's staff are now World ^ar II
veterans..'; /

„

v

/

Assurances in force /

/.

$3,390,372,327
New Assurances in 1945

;/ $241,409)819

.■

/fJpM

shares

100,000 shares offered

common

basis

At Merrill Anderson
M.

'/ .4

on

the

-

of

a

share

ferred for each share of

Paul

paid since Organization

offered represent the unsubscribed
to

-

from

Report

$1,800,672,431

•

-//dust made the grim announcement

;'.'. •/ ■'■

to

retire

of

year's group life insur¬
ance premium, or refund of tui¬
tion, which would give each suc¬
cessful contestant the equivalent
of about $40.
a

'

Mr.

This week in Ottawa discussions

a

year's

choice

tory

1947

ABA.

responsibility./, ;/:"'-/////;•///;/

Such

wish

an¬

by

one

the

Dr. H a r o 1 d;
Stonier, Executive Manager of the

did.

at

'

•

who

,

Coun¬

it

a

others

and

Six ! prizes
are
being offered
jointly by the two associations
sponsoring
the
course. / These
prizes will be awarded for highest
grades in the Stock Exchange ex¬
amination if taken before Jan. 1,

As¬

nounced

prospective starvation of millions,
against which your President has
warned lis, we North Americans
must accept some at least of the

own

de¬

either

and

New York Stock Exchange
qualifying examinations.

Rela¬

Public

Potsdam and
elsewhere, can scarcely be de¬
scribed as encouraging.
For the

are

is

ing

director of its

yet that,

fathers

our

events,

and

Brokers

extended preparation before tak¬

the

of

sociation

facing like problems, we shall now
Recent

on

has
the

tions

assume

Finance

either

Bankers

all in 1928 and 1929.
us

of

signed to meet the needs of those

American

as

to guard in advance, this
time;' against the results of an¬
other such madness, as seized us
But let

has been prepared and will
conducted by the New York

Institute

staff

such

Europe,

em¬

veterans

bank,

aj break¬
there : was
from 1919 to late 1924.
We shall

in

be

the

joined

that world commerce may re¬
This time-we shall try to
avoidable

other

course

leave from his

vive.

down

and

velopment

private capitalists alone the" task
distributing purchasing pow*

make

veterans

Committee for

of so
er,

change Firms to all brokerage of¬
fices throughout the country an¬
nouncing a review course for

Economic De¬

destiny.

shall not leave to

This time, we

two

of

and

ers'

Ex¬

ployees who wish to qualify as
registered representatives.
The

the

of

fee

initiation

of

dues in the Association of Custom¬

and the Association of Stock

returned

mem¬

a

ber

We North Amer¬

is in the future.

past

Island,

during

the

past—but of

the

for

and

most pressing interest

course, our

Long

Square,
York,

New

being mailed by the

are

Assocaition of Customers' Brokers

W.

Green,
formerly
relations director of the
Franklin Square National Bank at

Depression with
its inevitable by-products — in¬

lowed the Great

Customers Brokers Offer Courses for GIs
Letters

ABA Public Relations

hope

That increase was only possible

«

.

G. W. Green Director of

he destroyed the
prosperity which had
been created initially, by means
of the loans he made. There fol¬

ments ever seen,

business

a

//••

•

the most remarkable mass move¬

987

of

pre¬

common

Proceeds will be used

bank

loans

and

to

in¬

working capital. Each share
of preferred stock is convertible
into IV2 shares of common stock

Copy of the Annual Report for 190

may

be obtainedfrom*

crease

prior to Jan. 1, 1951.
Underwriters
participating in
the offering include Dempsey &
Co., Hirsch & Co., A. M. Kidder &
Co. and Freeman & Co.

...

</ /T.

SUN LIFE OF

CANADA, TRANSPORTATION BUILDING,
WASHINGTON 6, D.C.

:

THE COMMERCIAL & FINANCIAL CHRONICLE

988

Thursday, February 21, 1940

from Bretton Woods to the U. K;

Gold
(Continued from first; page)

as
.

the
monetary system as a fundamental
of free enterprise, and at thesame
time is convinced of the futlity of
the gold standard. As a matter of
fact, one might speak of an Amer¬
ican-bias against gold as well as
against the industry ' which ex¬
tracts it, a prejudice the roots of
which may be traced in part to
the speculative orgies in the wake
.of gold discoveries.
A
One of the ideas underlying the
hostility toward gold, disregard¬
ing those of economic and political
philosophy, is the alleged arti¬
ficiality of its value,, Man can
make it and break it, and if so;
why shouldn't it be abolished al¬
together? Actually, so little gold
is being used as money in the
technical sense—for the physical
function of payments within in¬
dividual countries : and ' between
them—that if the value of gold
were determined by the demand
for national and international cur¬
rency purposes, it would be small

/interested rin the .stability of
•

.

.

..

.

.

t

an

Investment

loan.

pending directly or indirectly on vince himself. by polling banks
The speculation on. the and capitalists, large and small:
"strength" of the Canadian dollar what part of their cash reserves
overlooks the obvious: that noth¬ and at what price would they be
ing is simpler than to match the willing to'convert into gold?
influx Of American capital ($245
Why are people bidding for
millions last' year) by. equal or gold? Their motives are the same
larger Canadian credits to third as for paying rising prices for

likelihood, the
revaluation will not take place in
In all

diamonds, real estate, equities, all
of which are appreciating marketCanada, as it didn't in South wise. The monetary inflation cre¬
American countries 4 in spite
of ates a plethora of purchasing
their
greatly strengthened ex¬ power that seeks reasonably safe
change position.
;
investment of one kind or another.
Even slimmer are the chances To blame these1 private purchases
for a deflationary measure of such of gold on "hoarding," is mislead¬
ing. The buyers are not so much
an incisive character as a substan¬
tial revaluation would mean to hoarders in the old sense, who
have some, reason to worry about
this country. Nor is it practicable
any more.
Our monetary volume revolutions, conf isca tions and even
risen to' such an extent that wars, as rather speculators,; who
the,proportion !of gold lothetotal expect either pefmanently higher
of
outstanding
monetary
units commodity prices or a new de¬
(including bank, deposits, etc.) is valuation, and hedge against the
risk the best they can.
near the record low of 1929. ' Our
And the
has

cost-price structure is out of step
with the world market, and tends
to be so more and more.
Unless
we

deflate the monetary volume

experience of all paper inflations
has taught the world that gold is
the .only "ideal" hedge, with the
additional quality of perfect liq¬
uidity thrown into the bargain.

well

as

costs

and

could not very well

gold altogether?

lic itself would not
it any

want to have

more?

V"*"; 44-4

tin the former case,

valuation,

gold

that pf A re¬

would retain

its

present monetary position.
The
Treasury would continue hoard¬
ing it, but with a higher "goldconteht" infused into the. dollar.

to be more anxious to hoard tons

gold than'evef before, and they
on- to
them more gregari-f
A
r e a XV demonetization
mean.'the Treasury's re¬
fusal to buy 'atrany price', and; to
eel! its gold holdings of a.bout $21
bilions for what they may fetch
on the market. Suppose tht-s would

there

no

danger 4of gold losing its
being 'reduced in lef

of

all

member

rising average grades, to say
nothing of such sensational displays as in the case of Quemont in
Ihe Province of Quebec. Of course,
not all,. is gold, that glitters, and
the most valuable prospects may

be the last resort

(explicitly foreseen in the statutes
of the International Fund),.

44Rising Costs in Mining 4;:!?;,i
There is

no

need to worry about

The drawback

industry?

area,, as an

costs

the

It is faced with rising
the

on

hand

one

and

in

an

official

cannot take

Gold

one.

mines

advantage of this sit

uation since they are bound to sell
their product in their respective

Territory,

additional

investments

further upwards.
direct labor costs

est Russian

product on the other. Equip¬
ment, steel, explosives, etc., have
gone up in price and the trend is

tive

workers^ of

the decisive

Witwatersrand
one

South

received

similar

Africa's

which

least

hazard

old

,

is

even

There

experts

[even in labor.

level two and-one-half times the

less competitive abroad.
The sheer psychological impact of
la revaluation is very, depressing,
ias President Roosevelt found out
British,

when his mild threat with

a

pos¬

sible lowering ' of the gold ' price
was

instrumental

in

hbout the 1937 collapse.

bringing

open

markets top: all others.

tin; corrected, just

Bombay,, gold: sells for the equiv-'
alent of $60 to $75 per ounce, and;
occasional attempts of the: India
>
:
Canadian Revaluation?
The • Canadian example .is very Reserve^ Bank1 to restrict sales;
instructive in this context. There were answered promptly by quo-;
tations as high as $80 per ounce;
is a strong speculation current
In Paris, the louis d'or, that lias
that the Canadian gold price of
$38.50 might be brought back to a face value of 20 gold francs or;
par.
Should it materialize, every about $6.50 at par,.commands ac■

/

,

.

una voidable

are

as rising prices are
at hoihe unless costs

kept under control.

sonable

to

assume,

It is

rea¬

what all po¬

litical symptoms indicate,- that this

country will have to go through
the "tppnetary wringer" before it
will 4 l?e ready to submit to the

painf^

which
a

is

deflationary
necessary to

operation
bring about

f^ahstabiliaztion. :
in a Canadian ually $12 to $14, and occasionally;
Evidently, the present policy of
gold mine would bring 10% less much more is realized fpr coins.
In short, the open market is per¬ the
Anglo-Saxon countries is bent
gross ; profit
(but the American
on
shareholder would realize
10 % fectly willing to buy gold in exmaintaining their} exchange
rates (except where enemy oc¬
more on each dollar of dividend).
oange
for dollars,
enough ;of
Even such a moderate revaluation which are floating, around here, cupation has been followed by
md abroad to absorb our entire runaway inflation), but without
encounters the most determined
resistance on the part, not only of ?old reserve if it were liquidated. nutting a deflationary pressure on
the gold producers, but of all ex¬ The price (in* dollars);ifoay flub-; the respective'1 Oc'OKomic houses.
port interests which are far more mate, but after an initial shock it The idea boils down to assuring
s bound to sky-rocket because of; "full employment" at high wages
influential
there than
in
this
'he "loss Of faith" the dollar would together
with "stable money."
country,, with three-fifths of the
"ffer m losing its metal founda-. That is the prime intention of our
Dominipa's: national income - de¬ tioru He who doubts might con¬ international monetary policies,
ounce

produced




■

,

,,,

'

The efficiency;of

Joint Products

■t-vt'i't

,

fence of joint products. .20 to 25%
However, there of the Canadian
gold output is in¬

factors

at

play miti¬

tertwined " with

that

of

other

,

metals; in the U. S. and in Latin

'*

Arnericaf
on
the
other
hand,
scarcely 40% of tlje gold produc¬
tion is unmixed.

This too has

'&j'0.

compensatory influence on- the
earnings of the fortunately situated companies, since higher costs
coincide, as one may expect, with
enhanced metal prices (other than
gold). Noranda, in Quebec, used
to be a "classical" example, but

;

copper and silver have become by
far its leading products, with gold

;

modest secondary place. \
A silver-lead mine combined with >gold^ like Tintic in
Utah :; is
-another " illustration,

taking

a

only.

if

while in

spite of rising costs, so
exchange stabilization
gramme, equal to, roughly, $47; funds hold the external value of
per ounced/ ' Then, gold -is a vail-; their currencies in spite of in¬
able to the public legally in Bom-; ternal inflation. But both manipu¬
bay and " Alexandria, and illegally: lations. are. of limited life and
on
the, mbre >Or;: less:; organized sooner or later open / devaluation
black markets such as in Paris. will become unavoidable here as
Prices;" in44fceSeV^
elsewhere^/^hlesythyj(nflation; is

:

>

The gold mining picture is fur¬
ther complicated by. the- occur-

■

the

•

t

,

can

•

operating
methods
("sorting"), v<..,A-";1.
the greater or; lesser usefulness
of mining equipment, and the ecO- 44

;

-

:

consisting of three sig¬

as

working costs per unit with larger
plants; (b) the possibility of increasing
profits
by
changing
grade, by/ the process of sorting;
and (c) the need for proportioning
equipment (i.e., capital outlay) to
the 'possibilities of the mine'."*
Not only is the overhead re¬
duced, such as administration and
maintenance, but; working costs
as
well, with the possibility of
.'substantial savings in material and

be done—although the exactly

ited quantity .to the public at the
official, rate, of 25,25 cruzeiros per

other favorable fac¬

nificant elements: "(a) the fall of

.

goods, already produced at a wage

are

' nomic size of the surface plant, all
injected into the • depend on the operating capacity
of, long-proven! (W6K: has increased in many in-1;;

reserves.

several

under

Knife; fields

increase in the size "of operations
are conducive to cost advantages
which have been summarized by

older peace-time dividend
records and with well-staked out
are

conditions

Yellow

tors at play, especially so again in
Canada. For one thing, the expan¬
sion of mines and the consequent

or

metal

the.

to

the

Rising Scale of Operations

four to five pence (9 cents) per
shift, the burden of which the
companies carry incidentally, by a
kind of proportionate pooling. :
For the time being,
physical
scarcity of labor and of produc¬

valuation

for

trans¬

labor.

at

raise during the war, if only

new

in

port, housing, etc.; andraising costs
Incidentally, the rich¬
gold, fields, those of
Khakassia in eastern Siberia, are
in a climatic position singularly

Direct and in¬
are

calling

all around.

factor, of coqxse.. They have risen
all over tHe world; even the na¬

pp-^ countries at the legally established gating the seemingly dark out¬
policy dominates, every¬ ceiling price. (Note, however, that look for gold mining profits in the
That -would have very substantial posite
where; including the Soviets and gold mining in Latin America* next year or two.,'
deflationary
consequences, * the
the International Monetary Fund
Given the price o£ gold and the
from Mexico and Nicaragua to
more fso the lower the new price.
^-what/then would happen to the Brazil and Chile,
For every dollar paid abroad,- we
enjoys a par¬ estimated cost of production, the
market value of gold?
'
value of a gold mine may be looked
ticularly favorable position by be¬
Would have to export twice as
The answer, easily can be found ing able to sell; its output at an upon
as
a
much' gold if the price is halved.
capitalized annuity,
on the opep market. * There are
enhanced price—something to re¬ depending on the size of the ore
Foreign claims against this coun¬
body, its continuity, and the aver¬
try, amounting probably to some four kinds of prices for gold in member.)-; That ceiling, in turn
through 4 pegging age grade of the ore. • Obviously,
$13 billions, would be doubled in the world today. There is the of¬ is maintained
terms of gold, in which they are ficial price at which it is bought operations
on
the; foreign ex¬ the attractiveness of the invest¬
payable.
The Treasury, having constantly* but not sold, by gov¬ change markets, and by foreign ment rises the more the "life" of
the mine is extended through new
bought most of its gold at $35 an ernments. Secondly, in a number exchange regulations and restric
It is reasonable to assume ore discoveries, the more continu¬
ounce, would have to write off of countries gold is bought and tions.
sold publicly, but under, limita¬ that these procedures can. last for ous that body is, and the higher
jhalf pf the purchase price as a
its metal content.
at> ;u
price substantially; some time longer before ' th<
Rising costs
loss, Or shift the loss on the Re¬ tions,
As the may be offset by improvements
serve Banks (?). Export interests above the American.;: (Brazil just have to be abandoned.
would be badly hurt, since a re¬ has restarted selling gold in lim¬ OPA can hold the price level for a along these lines.
valuation would make American

example, is its location
barely accessible arctic

the

of the

value

the

the fortunes of

Northwest

price, ^but the inexorable-: fact is properties -such >s Homestake,
that the world market price of Mclntyre Porcupine, Lake Shore,
gold has risen to about the double Hollinger,, etc., with a generation
of

on

unusually rich Yellow Knife

effective ceiling set over the price

hold

or

;

suffer from adverse circumstances.

the future of gold.
But what are
the prospects of the gold mining

of

ously.
would

been

at

devaluation

,

d#y to buy
Or that the pub¬

some

to persist¬
not

tive

currencies will

-

refuse

as

have

ore

disappointed, and in younger ones,
such as Kerr-Addifson, Lamaque,
Sigma, San Antonio, to mention a
few, unexpected discoveries have
take place, sometimes (Macassa)

•

would

of

ence

that by some miracie
mternal price structures will ad¬
just themselves so as to permit
the permanence of these exchange
rates, or alternately, that a collect

prices, we
afford to re¬
We can set the gold value of
duce the gold reserve (in dollar the
Revaluation?
dollar, or maintain a ceiling tive materials overshadows every
terms), discourage in addition the over the dollar price of gold, if other
consideration.
But
these
The practical question then is
influx of gold, and make our com¬ we
keep the dollar convertible in¬ shortages
should < be
remedied
whether it is worth sinking money
mercial position entirely unten¬ to
gold at the given price.
But gradually; actually, gold produc¬
into gold mines if the price of the
able.
Indeed, our problem is not that is possible only,.if, and so long tion is on the
; increase, in
this
product is a matter of sheer fiat
whether we will raise the gold as, we
keep the "printing press" country, and even more so in
and might be changed any time
content of the dollar; no one ex¬ under
proper control.
We have Canada. The question then is the
to
the investors'
disadvantage.
pects seriously anything of that gone beyond the limit in inflating price in higher costs to be
This may sound naive to the con¬
paid
kind to happen.
Our problem is our monetary system, and the free for the remedy. They are
noisseur H of ~ monetary
history,
rising
whether we can avoid a new de¬ market. for
foreign
exchanges, also on account of black market
which is an Unending story of in¬
valuation of substantial magni¬ legal or illegal, discounts our
pros¬
operations in gold: the differential
termittently raised gold prices,
tude. 444 4y 4
I
pective ability or willingness to between the official and the real
but the question cannot be dis¬
Demonetization?
pay in gold in all amounts and
price is conducive to extensive
missed lightly in view of its popu¬
But the "aurophobes" do not at ail times. This proves the ex¬ illegal '• practices
lar appeal. However, it never has
(stealing
and
want to raise the gold content of istence of van autonomous market smuggling) at the expense of the
4 been made clear what is meant by
the dollar at all. > Total demone¬ valuation for gold — the funda¬ mining .companies, <: Higher costs
the possibility of' gold losing its
mental independence of the
should bring one mine after the
value, that is supposed to be the tization of gold is what they are
other into -the sub-marginal cate
danger.. Does it imply that the after, or expect. That is far more price from governmental fiat.
drastic than just "going off" the
gory, unlessiand-untit a new de¬
gold price would be lowered, say,
Devaluation Prospects
valuation provide^ relief on the
After, leaving the
back to the $20,65 par or even gold standard.
In'other words,
beloW?
Or that the Treasury gold standard, all countries seem
not only is price side;'. In the-meantime,: a
as

indeed.

cupine, expectations

OPA

presupposes

exports.

countries.

But this international

.

only a minor one, of the f:;
that' the- damage done' by
.

point

Offsetting Factors

cost-infla^hv^to r the

is exactly what has
accomplished
during ? the

.

thanks to the efforts spent on

profit-abil-

ity of one hietal may be compen«t
sated' by. the- pricerinflation the
other enjoys simultaneously. More

yrar,

ver¬

tical and lateral

;

;

diamond drillings significant- are the- Labrador' iron
on Canadian; properties, hrTransore
fields ;t<£? HORingeri^:Huture • 4 ;
vaal and the Orange Free State,
prospects, - the molybdenum-/ and
• Vf
to « a i lesser extent also * in this tungsten
potential to J Dome, ;or ^
country and in Latin America. silver ;tof some of : the Central / 4
The Canadians, in particular, have American
gold producers;' (New 4 '
made ~ astonishing; progress.
In York, Honduras :and ;RosariO; e.g.)'. y; ;
spite of greatly reducedy labor For -U; S. ;Smelting,:Refihing:and
forces, many of their companies Mining, as one -more: example,
" ;
have been engaged in extensive
gold is a by-product of silver, lead
drilling operations add explora¬ and zinc production. 1
:
^4
4 4 ; 4
tions which resulted in vast new
4, The Financial -Hazard.
4;'r
discoveries as well as in strength¬
•

ening. the economic value of the
So far, we are discussing the
properties; thus offsetting in part technical and market-wise aspects
at least the adverse effect of high¬
of gold mining, and the hazards
er costs.
^

4;'

they imply.

Incidentally, the in¬

Naturally, we are more inter¬
ested "in ^Canadian developments

structive treatise of Herbert Hoo¬

than any

ver

miner's
most

others abroad. From the
point of view, perhaps the

serious

risk

is

the

greater

lesser

persistence of ore in
In the Dominion, the
recent tests have proven beyond
or

depths.,

on

Principles

enumerates

seven

which this type of

Of

Mining

kinds of- risks

extracting in-

dustry has to face;
4

(a) The

risk

of

continuity in

4oubt that in, the old established

*"The Theory of Gold. Supply,"
leading properties, such as Lake
Slipre, Dome, and Mclntyre Por- by Dr. W. J-. Busschaii, p. 63.

.

/

989

JTietal

contents.. beyond

laces;

•

♦,*,')*••?* "/*■

Government. order to

sample
''

*f'

"

-

/■/<(b) The risk of .continuity in
Volume through blocks estimated.
; (c) The risK of successful metallurgical treatment.
'

(d) .The risk of metal prices,
(e) The risk of properly esti¬

...

mating the costs.
,
" *
(f) The risk of extension of ore
beyond exposures. .[ ;V:,v;
V; ' i'%-.
(g) -The risk of management. •[./•
,

'

:

•;«

■;

"

Financial risks

-

••..

*v1\

■

3

pure and

simple

not

are

mentioned; they are not
to the mining
engineer,
but they are no. less
important to
close

,so

the investor. The first
among them
is posed by interest rates.
Obvi¬

ously, the higher the rate that
be

earned

in

so-called

a

investment,; the smaller
counted

value

of

the

dis¬

given

a

can

riskless

"an¬

nuity'' in the form-of gold output;
i ^"d vice 1 versa,/, Now. then, if we
/Assum& that the present or similar
lo\v interest rates areio

stay, the
earning ; capacity of the < mines
should be evaluated at a propor¬

tionately high xate of capitaliza¬
tion.^ Compared with the valua¬
tion of,- say, 15
years' ago, the same
irjine underJ the -isame conditions
should have doubled in value. In

.

: cease

btibns ' entirely ^during

oper-

the

provided througn more reasonable
depletion allowances on the tax
bill, which absorbs from 25% to
33% of the companies' gross earn¬

ening the life ofjhe mine by

us-

jng labor and materials for capa¬
city production.' The theoretical
effect of high labor- costs Js
[just

high-

the opposite—to by-pass the
cost 'veins <md

the-

.exploit preferably

tyigli content- oresprovided

the

body structure and its
continuity permit- such alterna¬
tives. (which is not always the
case).
A 1 rational [fax
policy,
ore

therefore, should consist of low*

eringvtaxes ' ih a period of high
tabor costs and- fixed gold priipe.
ahd. bf faising fhem; In tiroes of
as tjh e
.property valuationr is: con- declining labor costs and/or ris¬
ing price for, gold; - Present^ pol¬
cerneid/ True; that rate
might and
probably *-iyUl^Tise 'again '-within icies tendfto.foster all-round d,isthe lifetime of mn'sf.minoe
lifetime of most
CouraVement and impede the flow
rhines, injeeting a -new uncertainty into their of risk-capital into the industry.
too, and

But costs may decline,
a matter of fact,,
rising

as

interest rates rriay be the prelude
to a then
forthcoming decline of
prices for materials and labor;'

The Double Hedge

([Given

Taxation
vital since

It is the

more

mining properties have

.

these

conditions,' and
thkihg into account the possibility
of

tax relief, the short-term

some

investment

$, ~ Next, taxation.

less.;, Part

outlook

the

■:[

a

tween one-half and

it

the average, "since the total

on

probably average befweenone-third and one-half pf

^e; increased., value of sales. py

j

(/Th^ faiIeviation; of/inflationary

pressure resulting from
production of consumers

goods is

confined to the markets for goods

th£. production- of which is; ■ injn (markets for other consumers

goods Cis; jptehsifiedr - Thus, " if iri
the above example the increase of
production was all in clothing, the
supply of' clothing would ? have
been increased by ten billion dol¬
lars

and

demand

consumer

for

goods and services would have in¬
creased by, let us say, six billion.

gold
mining industry offers at present But of this six billion additional
an
extremely varied picture, de¬ demand perhaps only one-half bil¬
pending
on
individual
circum¬ lion would be for clothing.
The
on

On the whole, the posi¬

other

ately stronger than that of the old

think

not

there

is

of

doubt

any

that the generalization concerning
the effect of production on infla¬

demand

sumer

thereby

not

If

allow

a

the

providing an
-greatly enhanced

tax

authorities do

deductions

proper

for

they do in the^se
of oil properties
in; /this(/cbuht£y,
the

as

attractiveness

ment

invest¬

greatly impaired.

is

of: the

Given

the high

tions,

tax burden

and

the

on

on

corpora¬

income

upper

brackets, the question of depletion

tion

of

the

comparatively

which

to

it

60,COO shares of Universal Pic¬
Co., Inc., 414% cumulative

prefei red stock ($100 par)' at $102
shaie.

a

The

/[•:-(v.

financingis to
provide
for buying the preferred

funds

stock and one-half of the common
of

stock
pany

tional

new

a

hedging

But this is

passing s'tdation and
ere
long one of two things must
happen, or a combination of both.
Either
which

a

the

.

inflationary spell in
living continues and

we are

progress.::.;/:^y[' //t''y
the

level.

tained,

unpredictable U political
But what m^y be ascer¬
at least assumed; is the

or

visible policy trend.
Two things
stand l out * in that; respect/
Thb
trend of tax policy is downward,

/. if

only moderately; that is true

for

this

tent

to a lesser ex¬
Canada - and other

country,

also

for

parts of the British Empire.
(In
Latin America, rates are compara¬

tively
"

-

In

low that

so

revision

downward

no

|s to, be expected.)

;

,

But this |s the short-term angle.
the ilohger .pull,)'tax ( policies

toward gold mining are bound to

be determined by its significance
to the national economy.
sential to realize that as

conditions

will

be

It is

es¬

soon

as

normalized,

-

gold

will be, if it is not already,
the largest single export item for
South ' Africa, ;
Nicaragua, .and
.probably also Canada
(possibly
even for
Russia); second on the

an

eventual

[devaluation
it will be

of the dollar.,; Or else,
tion has taken

flationary

infla¬

some«more

plans

company

well

as

gives

places-through de¬

Ltd.,

Shares on Market

party to the agreement.

a

[•Common stock of the new pro¬
duction company not acquired

fered/50,000; shares^-Of 3.30%Sti¬

ternational

stock

Pictures,

and

assets

( The

the

share//until

offer

plus

on

The [
$104.50
and
or
:

a

share

for

share

basis,

*,

/ /

.

prices down to $101.50
after Jan. 1, 1961., ./
"

The

underwriters
the

awarded

sale

Feb.

Noyes

who

issue at

$104

•Universal's
Nov.

present financing,

Hemphill.

Co.;; Metropolitan St.. Louis

are

to cloud the international
'

.

*

live

practically

on

their

exports,

tax policies are not likely to be
of the kind to kill the goose that

lays the golden

eggs.;

.

.

of

The

Cost-Tax

Squeeze

,:" As

a matter of fact, the clamor¬
ing for some kJnd of relief for the
gold mining enterprises is becom¬
ing increasingly audible. In Can¬

ada, it takes the form of demands
least

one

Lowry

Sweney, President, Ralph

K.

Childres, Secretary and Treas¬

urer.

Mr.

interest-free loans with the char¬
acteristic arvumen+ thpt*"tbis >•>-

has

dustry

as

country

are

proposition to subsidize

"is

the

only

which

was

one

in

;required




this
uy

demand

ket to;be

above

must

L.

impact

Cartwright for
with

Blair

Vice-President
Chicago office.

aaa

many years
&

in

Company
charge

\

alleviated.

i

•;

ti*

'

V

,s

,

'.'i

•;

'

upon con¬
/

.

^Throughout

moreover,

175,088

,

" V.-

l<

'

/

,

nieii

hear-men saying: "This is ihc

:

,,

,

the future.
It is

(

:

a source

/./'[v1
of satisfaction to John Hancock to have a share

in these developments; This Compan^ now insures one out of.
ten insured people in the country; more thah; 7,150,000; Its in- [
surance in force is $7,256,618,765;
,'
[
(/
.

.

83 i*«l Aniiiial

Ite|»«r(

-'-([///■■[i/^ December 31, 1945

Total Admitted Assets

$1,837,622,236.61

Liabilities.

$1,651,383,135.15

Total

Contingency Reserve for interest

adjustments and asset fluctuations J $30,000,000.00
General Surplus

of

of

of

things
even

which do not
indirectly to the

$156,239,101.46

marketable

Total Insurance in Force
Securities carried

consumers

for example,
increased building of public monu¬

are

at

[

/

$7,256,618,763.00

$477,030.00 in the above statement

deposited for

purposes

required by law'

' j

goods and services;
Here

ments.

an

increase

in

pro¬

duction would be purely inflation¬

This

Company offers all approvedforms bf life insurance in large or small
includinggroup coverage; also annuitiesfor individuals andpen¬

amounts,

sion and retirement plans for

eorpofatjiiffdn'4y educational institutions.

increase/ demand
building was going on
and would not produce any offset¬
ting increase in the supply of
marketable consumers goods and

ary.

It

while

would

lr-^i /

the

services either then

or

at any

later

Insurance

time.

production

of

goods and of capital goods used to
produce
consumers
goods
and
services within a relatively short
period

together

•the -largest

area

of

consumers

comprise by far
of production, I

copy

of

the

complete

I

Company

Boston, Massachusetts

Guv W. Cox, Chairman of the
a

Board

annual

MFl'l ■ ■ ,1T.«[

Paul F. Clark, President

report

will

war¬

common

/placebo start my busines8.';,p«t of this selLteliance will grow :
new enterprises and
jobs^^ i^;inUIions &{ pe01»le^ / /;: " / / „
To this growth many tilings are-essential ;;transp6rtati6n'sys-; /
tems, light, power, good roads, houses for employers and em¬
ployees, schools for their children*
v ;
./ / These things in turn emphasize the importance of the investmeats of American life insurance companies totaling today more than, forty billions. About sixteen billions are invested in govern¬
ment bonds giving
support to veterans' programs.' The balance
is largely invested in municipal and public utility bonds, and in
the development of homes and farms. Thus life insurance invest¬
ments are giving active support to those who are planning for

\

production
of
goods is increased pro¬

the country/you

the

:v;.^/-/[ ' •['•/■//"'.■

1

r<-

sclf-reliaiht

of

be measured.

can

increased

Since

.

been

their

and

and

offered. There

be

Finally, at the opposite extreme

contribute

Lowry Sweney, Inc., Hunt¬
ington Bank Building, as VicePresident, and the firm name has
been
changed to Sweney; CartOther officers

buy

The words

\ j

/

made before the
sumer

flow

COLUMBUS,
OHIO — Todd
Cartwright has become associated

wright & Co.

to

shares.^';/'

k

stock

now

•

FJam, Vice-President;

has come-into the open: by
Senator McCarran, who asked for

mentioned

duction

G.

them

tions

consumers

In this country, at

for tax relief.

kets, at least in the first instance.
Cf new factories are built: costing
a billion dollars, the ;samp deduc--

of

the

will consist of

common

outstanding,

rants

and

•'

% :

as

to

the

in

capital goods field has a different
on
consumers
goods mar¬

from

with
\

'

effect

^

Todd Cartwright Is ;
Officer of Sweney Co.

Co.;

Co.

to'

$7,080,000 of funded debt, 804,219

&

shares

&

adjusted

1945,

3,

f

capitalization

preferred stock

Murch

ranging

ing fund at $102 a "share,

.

Curtis; Blair & Co., Inc.; Quail &

H.

1,: 1951,. and

prices

Weeks; Paine, Webber, Jackson &

Maynard

-

share after March 1, 1958.

a

were

Hornblower

being hi

It is also redeemable for the sink¬

on

competitive

include

15,

&/ Co.;

stock

March.

at

thereafter

is [ redeemable • at
share before Jan. 1, 1951,

a

be

new. company.

■

stock

at

preferred

whose

will

a

exchange

cash adjustment.

a

the

to

of the company's 7%: and 6%
preferred stocks, who: may obtain
an

Inc.;

good-will

transferred

ers

shares under

ac¬

quired by William Goeti and Leo

($100
par) of Iowa Power and Light Co.
at $101.50 a share. Prior subscrip¬
tion privilege is accorded to hold¬

new

be

Different Effect*

^production

by

Spits, officers of the present

mulative -preferred

will

Pictures

Capital Goods Production Has i;

f Increased

and

Universal

,

outlook,

produce

to

those of certain British

as

Investment bankers headed by
W; C.-Langley & Co. and Union
Securities Corp. on Feb; 19 of¬

,

Mexico,

Given this vitally important

;

wilt Until they are completed and in
control effectively, if hot deflate
operation, however, there is no in¬
thoroughly,, wages and prices;' In crease in the supply of consumer
the one case, gold minine will re¬
goods at all/so that the net result;
ceive "a shot in the army through
for this limited period, is clearly
a higher price for its product; in
inflationary.
In the. case of fac^
the other,' its current difficulties
tbries designed to produce con¬
will be alleviated through con¬
sumers
goods, this period will
trolled or lowered working costs
clearly be short. As soon as they
In any event, the unique function
actually get into production, they
of gold, and therefore of sound
begin to contribute to a reduction
gold mining shares, to serve as a of
inflationary pressure in the
double hedge—against loss on the
markets
for
which
they
are
currency which is facing devaiuaproducing.
,
tion. first,
and: on. commodities [
;Qf;course, all capital goods are
which hun the risk of a depression
not designed to produce consum¬
later—is likely to be resumed ers
goods directly.
Some are de¬
$gain, if indeed it eVer has been
signed" to produce other capital
abandoned; And another function,
goods; for example, factories to
that of a store of: value, will ac¬
make machine tools.
In this case
quire more importance than it had it will take
longer for the addi¬
in many/years,; if the threat of
tional supply of consumers goods
socio-political revolutions and of
to flow and for. inflationary pres¬
an imminent Anglo-Russian clash
sure in the consumer?
goods mar¬
«opt{nne

.

etc.

for

com¬

companies and of others of for¬
eign origin. The distribution com¬
panies are to be owned jointly by
the new production company and
by General Cinema Finance Corp.,

Iowa Power Preferred

measures" which

export list of Brazil and Colom¬
bia: third in Australia and

export position for countries which

;

production

to be known as the Interna¬
Pictures Corp.
The new

distribute its own, motion pictures

rise.'

Priester & Co.

things stand now, the
of mining shares as a
instruments reduced

stopped—after

on

con¬

consumers
goods, the sup¬
plies of which have not been in¬

usefulness

leads to

b^' answered

remaining five billion would
[additional
demand

stitute

As

one*.

allowances is of vital importance
to
the
industry -and its future

Of course, it will'

young

by

tures

creased. '

>

.depletion,

[

two-thirds of

deductions

mines with great new discoveries
at their elbows, is disproportion¬

return.

■

do

demand.

[Thus, jn the
of • consumers j goods " taken
whole, the increase in de¬
mand is substantially less than the
increasedir; supply, probably be¬
case

as

stances.

appearance of.

.

ten

made becomes increased

are

consumer

dividends,

v.

the

what is left after all these deduc¬

tions

the obvious
tendency to liquidate
invested capital in the form of

-

of

billion dollars may be retained by

.

.

.valuation.

stantially

headed

bankers

Investment

Dillon, Read & Co., .Inc., on Feb.
20 offered to the public an issue

(Continued from page 961)

the producing firms as additional
depreciation
and
undistributed tionary pressure is correct; i.e.,
earnings, and part is paid in addi¬ increased production does alleviate
ings, with no excess profits tax
tional taxes.
From the part that is inflationary pressure upon the cost
credits to console, them.
paid to employees and stockhold¬ of living. On the other hand, your
;; High taxes combined with ris¬
ers
a
further deduction must be question does call attention to the
ing costs may have a very serious
effect on gold mining. The logical made for the payment ■ of their fact that the alleviating effect is
personal taxes. Finally, allowance far less than might be supposed
answer to nigh'taxes is to concen¬
must be made for the fact that if we considered only the value of
trate on the working of low-grade
increased
part of what remains in their the
production
and
ores and to spend money on new
hands is voluntarily saved. * Only neglected
the increase of con¬
explorations rather than on short¬

•other [ words,' : / the
cost-; increase
may be partly .compensated by the
decline of- the interest
rate,- so far
1

Offered by

I And Inflation

which our miners do not get as a
justification
for
helping
them,
./tere, as in Canada and in Soutn

Africa, such help easily could be

Universal Pictures Pfd

Increased Production

war

period."
He also referred to the
high price bf bullion in Bombay

be

sent

on

request

.

>

represent

Price Controls to Combat Inflation
(Continued from first page)
market, and even in almost every
commodity market.
Everywhere men are betting on
inflation. Everywhere the infla¬
tionary pressures have reached
explosive proportions. It should

Wage-Price

/

of

element

One

for orderly

Program
the

increases have been concluded in

>

program

liquidation of govern¬
wage-price

ment controls was the

program. It was expected, as in¬
deed it has actually come to pass,

take-home

the

that

pay

of mil¬

be obvious to any reasonable mind
that only by the most vigorous

lions of American workers would

action—action taken

August 18, the Administration
dismantled the complicated and
often cumbersome structure of

now—can we

T'-1'

regain control.
What is
our

stake

at

is

than

more

reconversion^program, 'What

is at stake is
future.

entire economic

our

The

to

answer

our

pres¬

ent

problems rests with you here
in the Congress no less,than with
in the Executive Branch of the

us

Government.
In

the

months

few

next

weeks

shall

we

whether

be

build

we

and

deciding

future

a

of

prosperity and security for all of
whether

permit the pres¬
ent inflationary dynamite to go
off
in
an
explosion that will

us or

we

drastically. That was why,

be cut
on

wartime

controls and recollective
bargaining,

wage

stored

setting labor and management free
to negotiate wage
increases on
their own.
There was, however,

orderly fashion. I am told that
workers have received
wage increases during this period.
an

6

million

Nonetheless,
the
wage-price
policy broke down in a number
vitally important areas. Why it
broke down in these particular

of

areas

can

be left to the economic

historians and to the theoreticians
decide.-

to

time

that

It

to

seems

high

me

stop arguing about

we

Mwho did what to whom" and get

with the job of meeting a na¬
tional emergency,
l
on

,

*

,A ' Speculative;' Fever

,

A

higher proportion of They represent a cushioning of the ;
but
where
profits blow that millions of individual *
have been abnormally workers have had since V-J Day;.

a

costs

total

—

generally
high. ; It is less true of some of They do not give labor an unfair,
the metal using industries where advantage as compared to other r
labor; costs, direct and indirect, groups in the community.
They ■
represent a sizable factor in the are designed rather to maintain
total price.1
something approaching the balance ;
,
' \
; The result of this new wage- we had in wartime.
price policy will,

as I say, not ne¬
cessitate a retreat from the pres¬
ent price line.
It will mean a

bulge

in

smash

economic

our

system

yond hope of repair.
It

is,

I

review
have

think,

briefly

.

be¬

-

important

the

to
that

events

led

me go

up to this crisis.
Let
back therefore to V-J Day.

At that time there
eral

expectation

was

that

a

,

the

gen¬
infla¬

tionary pressures would diminish.
We expected

payrolls to fall off

sharply because of the elimination
of overtime, the downgrading of
workers

and

other

factors.

And

expected that during the tool-,
ing-up per i o d unemployment

we

reach

would

propor¬

tions,

further

result

of

experts

all

these

an

into

power.

factors

anticipated

markets and

pay¬

As

a

most

softening

of

abatement of pres¬

prices.

op

At

cutting

purchasing

the

country

time,

same

was

eager

,; the whole
to get rid of

wartime

controls as rapidly as
possible. After four years of the
rigors of wartime controls it was
natural

for all

of

us

to

hope for

the speedy restoration of the free
market. This was how the coun¬

condition—that

these

Food

prices

40% of
living line as
reported by BIS index. This new
policy will have little or no effect
on food prices. Provided Congress
Continues the present food subsidy
program, the line on food prices
,

the

total

ment

of Agriculture a program,
indeed almost a timetable, based
the expectancy of lower food

prices

developed for a pro¬
gressive removal of food subsidies.
was

The War Production Board
pro¬
ceeded at once to dismantle its
structure of production and other
controls.
were

ket.

Regulations in batches
pitched into the waste bas¬
The same was true of the

Department
Petroleum

of

Agriculture,

Administration,

As

Price

Administrator I

give

this

to

us a

policy.

sub¬

war

to

peace.

What, then, produced the crisis
which

we

V-J.

stabilization impossible. But V

contracts

still in effect is, in

are

j

opinion, healthy, proper,and,
in the interests of everyone of us. ?

my

^

Business Is. i>oing Very Well

!

How about business?

is doing very

Business

%
{•

American in- J

well.

dustry on the whole is extremely,
profitable. Only limited areas of;
it have been affected adversely by
.

the shift from war to peace.

The

and

to maintain stability in our Amer¬

food

ican economy.

to

the textile and
clothing industry, the department;
stores, v the service trades—none .
of these industries have had to re- •
convert.
They have kept on pro-,'
ducing right straight through. lt
They were very profitable during;
the war, they: are very profitable y;
today, and they are going to stay •;
very profitable for a long time to •
food

industry,

Corporation profits as a whole;
before taxes are expected to total?;
in 1945 some $22
to

billion compared ;
$25 billion in;'

under

little

a

'

It will be said that most of

1944.

profit was earned in the first g:
half of the year while! the, shoot- J
this

ing was still going
since V-J Day the

on

and that"

situation has
been entirely different.
We don't %
have the full details of profits •;
quarter by quarter for 1945, but it
is significant, I think, that the ;
boards of directors of American <k

corporations declared a billion and \
understandable requests from a half in dividends in the final *■:
farmers for the removal of quarter! of 1945—the period of •>
-

many

a

subsidies.'

These objections

continued hold the line policy

—both

This was %

economic readjustment.

just as much as they declared in |
the final quarter of 1944.
And;
total ! dividends last! year were -

;

On the wage ■' side,

been re-established.

control has

This does not

sible objections—will be

the

disagreement

Ordinarily

general
as

to

policy, but
timing,

my own record as a

no

better than the next

last

became

war

a

dominant

factor

only after five or six
following the cessation of
hostilities, this time put in an
earlier appearance. The specula¬
tors started betting on inflation,
months

that showed

and

in all

mar¬

our

Arid so, instead of a soften¬
ing of pressure on prices in key

kets.

policy come distribution in our economy
mean to prices?
It means ■ that today than at any previous point
manufacturers will no longer be in our peacetime history.
Let me
required to wait 6 months before say further that if we strive now
the wage increases which they to work'out all the unfairnesses
have granted will be taken into which remain we shall only sue-;
consideration in setting their ceed in blowing up our entire
prices, If for any reason an in¬ anti-inflation program with result¬
dustry—operating at normal vol¬ ing disaster to everyone,
What

does

this

new

change the character of their pro¬
duction—operations are less prof¬
itable at the moment than in other
parts of the economy.
But let's
keep' Our perspective;' AH theseg;
Industries together make' up Jessg
than 15% of the American econ¬
,

of

the

up

economy,

were

to

we

not under control

new

high ground

peacetime earnings for that indus¬
try for the coming year,
-

;

omy.

No

(

areas

can

one

know for sure how

Let us examine first of all the these industries are making out J
Nonetheless their outlook :
position of labor. There; are some now.
people who throw up their hands for 1946 as a whole is extremely g
For one thing, they %
in horror at the thought of any favorable.
wage increases at all.
Well, let's face an almost unlimited demand g

this

issue

:

-

'

t

look at the problem like reasona¬ for their output.
Once they really
The fact is that the get rolling they will be producing
general price ble men;
limination of overtime and. down¬ far more than they ever produced ;
increases throughout the entire
economy? Does it mean a retreat grading have sharply cut the take- before the war, and increasing
to a new price line—to a new home pay of millions of American volume means; lower/ costs andg
rising profits.
,
'
higher level of prices? Emphatic¬ workers.
ally it does not, and it is vitally
That the outlook for these in-:
There are all kinds of figures
important that we "understand tossed around about basic wage dustries is bright is confirmed by •
why this is so. '
rates, straight-time hourly earn¬ the fact that the stocks of corpora¬
in
the
reconversion area
First of all let's remember that ings, and average hourly earnings, tions
the number of industries which But let's remember that it is take- have not been lagging behind in

Looking; back on it, with the
knowledge that we have today,
and bearing in mind What I have
just said about the inflationary
pressures, it is perfectly clear that

>"

Does

this

mean

.

.

we

in

moved

too

stripping

controls.

fast and too

off

the

soon

wartime
■
*

.

*

Many of the actions taken, rea¬
pened to be one of those who sonable and proper though they
have been, or are likely to be, home pay that buys groceries and
wanted to play it safe. I was fear¬ may have seemed at the
time, forced below their pre-war earn¬ pays the rent. And when takeful of a repetition of the disaster have not only meant hardship for
ings for any reason is relatively home piy is cut, the family has
of 1919 and
1920 when prices our people; they have encouraged
very small. The present pattern of got to tighten its belt, as the Presi¬
soared
and
then promptly col¬ hoarding and added fuel to the
wage increases can be,
and in dent pointed out in October. The
lapsed. I did not feel that price flames of speculation.
many instances has already been; pattern of wage increases estab¬
and rent controls alone could
carry
And finally, let me turn to the established in scores of industries lished over the past three months
the burden of inflation control.
wage-price policy. On the whole with no price Consequences whatso¬ in most instances provides adjust¬
Having lived with four years that policy has worked extremely ever. It is generally true of such ments that go only part way to¬
of other Wartime controls we well. Industrial and other whole¬ industries as; the food
processing ward making good the loss in
could, it seemed to me, take an¬ sale prices as well as retail prices and petroleum industries where take-home pay.
:
other six months or whatever was have been held very close to their labor cost is a relatively small
These wage increases, and others
necessary to be sure we were on VJ-Day levels, while thousands part of .the total sales dollar.
It which will be coming along in
solid
ground
before
scrapping of collective bargaining agree¬ is true of the apparel industry certain other fields do not repre¬
those controls.
ments involving substantial wage and many others where labor costs sent a new advantage to labor.
on




I hap¬

f

,

the

,

opinion among the various Gov¬
ernment agencies; not disagree¬

But

since

A further increase over the j •
present pattern would make eco- >

irresponsible and respon¬
based on
a plea of fairness.
Businessmen right up to the 1944 level. Need- *
mean
a
wage freeze.
Wage in¬
will;.say "labor - has had rather less to say, I know none of my g
creases within the industry pat¬
general increases^: in wages, t :We business5 frierids ;who have had
terns
already laid down since
want general increases in prices." their salaries' reduced y since V-J •
VJ-Day will be approved by the
Some farmers will say the same Day.
4
v
V
Government. Every effort will be
'thing#;|i®^
Now it is true that in the recon¬
made to speed up action and to
No Unfairness
version area—and I mean by this y
establish streamline;; procedures,
For this reason, I would like to not only ' those industries which 4
I expect to have an announcement
discuss this subject of fairness of have
stopped
producing
war
about how this can be accom¬
plished within the next few days. income—group by group. Let me equiprrient and are now producing :r
and farms.
' ,
civilian items, hut also industriessay at the outset that there
is
Prices Need Not Rise
Second/speculation, which after
probably far more fairness of in¬ like Steel - which *. have had to f

almost,, from day to day.

In all this, needless to
say, there
was
considerable
difference
of

prophet is

ing, they4 will enable ms to keep
inflation under lock and key and

!

moving

man's.

■

Although

swift and orderly tran¬

sition from

kets which

on

established

patterns

Day.

the fact that many increases have v
occurred and others will occur in;
industries
where
pre-V-J Day ;

wage-price aspects of that pro¬
But let me make the situation
gram; I am not prepared this
clear beyond ; all question.
The
I knew that it would put some
morning to give you all the de¬
strain on prices, I believed it to tails. Many of them have still to price line simply must be held.
The prices of food, rent and ap¬
be compatible with effective price be Worked out;
But the basic
parel must be kept from rising;
control and in line with our best
policy is clear and' understand¬
labor-management traditions. And able. Let me say once mote,5 and Pn that all-important sector there
can
be no retreat.
indeed I supported the President's as strongly as I know how, that
There will, of course, be loud
entire reconversion program.
It the basic principles are good. They
was
a
program designed under are workable.
If we have Con¬ crys from the "now I want mine"
the
then existing conditions, to gressional as well as public back¬ boys.
yAndv \here wjli be sober
scribed

Economic

ment

f

nomic

.

■

Transportation,

ministration.

wage-price

new

of

,

have ume—is in
hardship, price ad¬
had prices pushing up hard against
justments will be granted. These
the OPA ceilings all across the board, price adjustments will be
designed
the and prices in the speculative mar¬
to assure the minimum level of

Ad¬

the

,

wages generally will be
stabilized according to the new?

■

and

Foreign

Under

represent

cost

.

Office of Defense

the

i

policy,

,

face today on the Sta¬
try felt; and this was how you in
the Congress, no less than we in bilization front? Well, first of all,
the tooling-up process of recon¬
the Executive
Branch, felt.
version has proceeded faster than
The Congr e s s, for
example,
moved promptly to eliminate the anyone thought possible.; As a
excess profits tax and to reduce result, while average take-home
pay has been cut, the volume of
taxes on individual incomes.
unemployment has not reached
In the OPA; the staff was
put to the proportions that were feared.
work to carve out broad areas of
That means that total payrolls
the price structure which it was
have stayed higher than expected
hoped and expected could be ex¬ with
a
resulting high demand
empted from price control during
for all products of our factories

the Fall and Winter months, And
in collaboration with the
Depart¬

narrow

speculative fever has taken
hold of the country. The pressure
negotiations
take place within
in the boiler is up to the bursting can be held; as it has been held
the framework of stable prices.
for 32 months, at roughly present
The;' President urged manage¬ point. The lobbyists and the prof¬
levels.'. >,
,/•
ment to negotiate wage adjust¬ iteers are licking their chops. It
is going to take firm and decisive A Rents represent 19%;of,the cost
ments in order to cushion the cut
This new ^policy
action—it is going to take team¬ of living line.
in take-home pay. He pointed out
work and support on every hand will have little ■ or no effect on
that management could, in gen¬
—if we are to hold this country rents. The rent line can and must
eral, afford to grant such in¬
be held.
on an even keel.
>
\
;
creases, emphasizing particularly
Apparel represents about, 12%
^
The President
last
the
Thursday
high profitability of most
of the cost of living line. This new
American industries, tl\e excellent laid down a new stabilization pro¬
policy will have little or no effect
financial condition developed dur¬ gram. He called upon, me to take
on apparel prices. It is my belief
ing the war, the protection against responsibility for its administra¬ that we can continue to
step up
tion and upon the country to close
the risks of reconversion embodied
apparel production at roughly the
in the tax laws, and the increale ranks and see this job through to
present average of prices,
v
I think it is a good
in earnings retained by business the finish.
i
And what is true of food prices,
resulting from the elimination of program and a workable program, rents; and
apparel prices is gen¬
the excess profits tax.
But the and I mean to put everything I've
erally true of furniture prices,
President
emphasized, too, that got into making it succeed. I am the
prices of house furnishings
such wage increases must vary confident that the American peo¬
and services. It is in some of the
widely from one industry to an¬ ple VWill give the President the
metal using industries, a relatively
other depending upon the ability support he has. asked for.
v
small section of the cost of living
:
of management to pay these in¬
Let me turn now to the pro¬
line, where < some price increases
creases without raising prices.
gram itself, and specifically to the will be needed.
basic

one

■

rolls and

sure

substantial

relatively

one

section of that line—a bulge which
must not be allowed to spread.;

•

on

Thursday,■; February 21-,"- 194o r

THE COMMERCIAL & FINANCIAL CHRONICLE

990

the

general

ly

we

boom

on

That is why

market.

the stock

until recent-"

felt it fair to ask the recon-^
industries, as well as all.
to wait six months after

version

others

negotiating wage increases before g
concluding that price relief was
necessary.
Not

on

So let

keep
are

.

;

Verge of Bankrupty

me

more—let's ;
of perspective. We .

say once

our sense

not confronted

tion in which scores

with a situa¬
of industries.

.

Volume

163

Number

4466

THE COMMERCIAL & FINANCIAL CHRONICLE

firms are.pn the
verge of bank-'; First World
War it

in price, But we shall see to it that the President has laid down is not a
The in¬ orders that are necessary to get perfect program.
Under the cir¬
since 1939 has totalled only jclothing
for our -veterans, and cumstances which we face there
ibuilding materials for the con¬ can be no perfect program. But it
If
the
presentprice /; line {/ is struction industry will be put into is a good program and a workable
broken
if
inflationary forces operation promptly. /
///;////./ program. It will prevent inflation,

^Ptl* VT^e
Un

very opposite is true.whole, American industry

the

is

the

on

extremely profitable. Only 15 %
of it is affected
materially by the
transition from war to
peace, f its
prospects, in general, were never break
brighter.
And as-I pointed out
in

—

loose—there

America

^ °re we have
tire
history had

there was.less

can business.

:

cies fell for

never in our en¬

is

which

no

group I/And I mean to make the fullest
more
use
of the authority under the

will

surely suffer disaster and heart-, Second

period in which

a

rose

Robt. Brown Director

average,/68%.

crease

break, than

millions of farm

our

hardship in Ameri- .families,/////;/;/
In 1945 bankrupt¬
I have come to

the third successive

know

Powers

Act

to

That is one thing

no

disaster for all of

If there is any
doubt; on that score, let me dispel

jit,, now.

benefits

and spells
And I want

one

us.

Robert
F.
Brown, partner of
Kuhn, Loeb & Co., was elected a
director

of

Pressed

Steel

Car

to say as strongly as I know how
that it is a fair program.
Under

pre¬

vent ^hoarding. ;■

farm¬

our

War

which

Of Pressed Steel Gar

it

shall not

we

nate

be

able

to

elimi¬

inequity in our eco¬
nomic system. That, I am afraid,
will never be possible.
But we.

we

every

well and fee.l that I .understand simply must not tolerate. Specula¬
their problems. ,1 sym¬ tors take notice!
1r
/.If we are to. win through in our can and we will do broad justice
pathize deeply, with their copcern
vY; Ciesun the
over the future./ The leaders:of
fight against inflation, it will take to all the economic groups of the
vi> * Finally how about'our farmers
farm organizations are my friends. |ithe best efforts we can put forth" country.
r
J
1
—the group whose
extraordinary I have confidence that
in the Executive Branch of the
Clearly this program of eco¬
they will
record during the war is
perhaps rise to the
Government.
More than that/ it nomic stabilization—or any pro¬
present emergency in
I
least
appreciated, the group which the same
statesmanlike way. m will take action by the Congress. I gram
of
economic
stabilization
roc more than
a
generation has which
that
you
renew
without which might have a chance of suc¬
they have supported price urge
profited the least
year; to

an

?

-all-time

This compares to

low1 of

ers

810.

-

22,900

bankrupt-1
hoont^year »1929. j ^ ^f;

'many/of

,

•

"

,

when times were

good

suffered, the hardest
blows in times of udversity/ '. •
In ,1939 our
farmers, represent-

,

.

,ipg 25 %of all" of

r:

our

.

during this

war,

they often fail

to

mention the low levels from which
tljey had to start.
'
* "
' •
x'

'*

•

'

V

f

'

:

r

~

■)'

Farmers Are Prosperous

•

Nevertheless it. is a "fact /that
.oiic, farmers,/like.^the rest/of/us,
• Ha.ve
done ratherwell/ since the

••

-

..

days before" the
than

three

war.

Today net
farmls more

times

as

great

h'ave been pretty general.

as

it

On V-J

Day the experts generally proph'■ ^sied/thaf' farm prices and farm

/:
:

,

income would drop
rapidly in the
following months. But again the
experts Were wrong.
In; Decem¬

ber, the cash income; of
was

) Tg those of

our farmers who

are

inclined to criticize labor and de¬

plore/ the

increases

which have

out

in

occurred, let

all

one

wages

me

point

important fact.

The
which

statutes//The speculative fever in
this country has reached such a
pitch that it.can be overcome only

the

Must Seal off Bulge

■

.

war. /*

much for

;

dangers

will/become

impossible.

and

it

is

major increase in the cost
of living.
This in turn would
force; compensating wage adjust-;
ments

on a broad scale. As surely
day follows night we would be
started on a spiral of wage and
price increases leading directly to

as

disaster.

properly,

our farmers hate
I don't blame them for

Subsidies

are

a.

evil, and the quicker
rid of them

can

isn't - going tq4 be /any .. inflation.
We're goingto hold the
price and
rent line aS> .we've held
it; sine©
•

May 1943—all • the -speculators;
lobbyists and* pressure^ groups to
the

But

up

gram.

that

I

the
am

much

we

the better off

subsidies
to

absolutely

are

success

we

of

our

pro¬

hopeful and confident
as

our

farmers

may

dislike them, they dislike and fear
inflation more. //
v; •

;The

stabilization

meant much to

prices he

point where price, rent and wage
controls can be dropped. Produc¬
tion is the only answer to infla¬
tion.

There

are

who

some

say,

PYes, but under price control
production is impossible." The

employees?

reconversion

1

controls

Feb. 15th—last

on

—at the very

to

the group

as

Friday
height of this infla¬

irreparable/ damage to the entire
program.

gress has proved that the

people's
good hands,
Let me repeat that if is not un¬

lease is in

i;1/I/further qrge" with all the vigor j

at myvcommand, that the Congress fair or unreasonable to ask Amer¬
enact at the earliest possible mo¬
ican
business
to
live/with
its

legislation to stop the in¬
j present generally high, level of
flation in the real estate market.
profits, with adjustments in prices
If this inflation is permitted to
limited only to those who really

continue

mine

just

unchecked, it; will under-?
construction industry

: the

as

it did after the last

war.

need them.

The vast majority of

Robert

',

1

F.

Company, Inc.,

Brown

the

Board.

at

our

has

program

farmers.

receives have

The

risen

on

been

resigna-,

tion of Sam Laud.

the
;

.

"

,

resulted in

decline in farm

a

too.

come

Finally, it is not unreasonable
or

unfair

over

labor

ask

to

temporary

to

government

wages and some cut in their :

take-home pay as a result of re~*
duced

overtime.

might wish to
there is
da

so

no

Much

prevent

as

we

that

cut,,

\

in which

way

are

body blow at
any
hopes we may have for a
secure and prosperous
economic

future.
./,
ZZ Mr. Wilson

developed

a

a

/

•

.

,

Wyatt. has recently

magnificent veterans'

his

products.

Some months

ago

iwill not ppiy it was
expected that farm incomes
provide the housing 4 whicn. jthe
veteran so desperately,, needs* at j would decline ip 1946 some: 15%
housing

program. It

reasonable prices, but it will also
put the housing industry generally
.

on

it

a

firm and solid basis such

has

as

of

success.

Not

a

will not decline.

will

go

That
the

due

is

wage

total

Perfect Program

the

program

the

from

up

helped

Gentlemen,

If any thing, they

before

enjoyed.
Legislation to prevent inflation of
real estate prices is imperative if
this program is to have a chance
never

| below the levels of 1945. It is now
I perfectly clear that farm incomes

in

the

1945

flation in whicW the workers;

to

wage

This advertisement is nqt, and is under
securities

small

no

prevent

a

income.

part to
have

decline

Such

We

shall close, ranks* as the Presi-

dent.has called upon
and /carry

which

he

through
has

confident that
our

1 aid
we

us

to to do,

the ^program
down.

shall

Let's

take

off

our

control

without

inflation

the

most

a

in
de¬

income would have

gear.

only

That is the
in

way,

way,

which

quickly get back to
free

a

and the
we

collective bargaining,"

this

country

But the prices he pays,

all of

us

be

that

perfectly clear to

we are

going to have
'

to

retrace

of the steps we
have taken since V-J Day.
As I
some

subsidy
)ermit

ood. The fact that

we

assurance

will

not

month

were

ready

that

be

that

continued

beyond

restore

we

what

a

is

shall probably

some

In the i only where the need is

of

the

very

Burr & Company, Inc.

pro¬

duction
controls
which
were
abandoned last fall.
Obviously we
shall move with discretion
and

Furthermore,
to

V;/;/'

We
cannot
increase in the price of

to liquidate that
program, and illdeed made a beginning, should
gram

•

program.
an

provide

'

,

Copies of the. Prospectus may be obtained in any State only from such dealers particb
pating in this issue as may legally offer this stock under: the securities laws of sum States

pointed out we're going to have
tp abandon early liquidation of the

94% the last time—for the single
that price and rent controls
have been in effect.
A gOod ex¬




Common. Stock

Some Steps to Be Retraced

have

ample is farm machinery.

these

any

has

including interest and taxes, have
risen only 40% this time against
reason

circumstances to be construed as, an offering of

offer to buy, or as. a solicitation of an- offer to buy,
°t such securities. The offering is made only by the Prospectus,

ever seen.

It' should

pro¬

clear.

Stroud &. Company
*:•

■/•'''

■

Incorporated
/•,/.;;v,:..-; ■■

/;

Dempsey & Company | Hirsch &. Co.

//■.■.;.■/;'///./':;/;■/•;//////.:/'.//''■■/:'/

::/:/.///V/' /

/•

A. M. Kidder & Co.
February 21, 1946

-

■

'/•'•//;/
1/// /;'/';.//' '-'///:
■///// :////:/'.•

/////i

?... / M. M. Freeman & Co., Inc.
.

•

and!

free and prosperous America.

or as an

can

free market,

disas¬

necessary for the continued stabil¬
ization of our
economy.

in the last

no

am

economic machine—the most

The McBee Company

coats,

forget our differences, and get out
the goods. That's the
way — the
only way — to get rid of price

single

as

for sale,

T

throw

now

98,000 Shares

recent shutdowns let's forget this
propaganda talk about price con¬
trols making production impos¬

sible.'

like;

level. productive in the world—into high/

increases. which

cline in wage

from

recovers

can

as

program of price control?

production

we

without precipitating an in¬

,

And it will strike

every

As

accept

controls

higher levels—all under

a

in¬

!

/

accom¬

centage in this

war

the

fills

by

caused

vacancy

of

meeting

a

Brown

Mr.

everyone else, has everything to
reasonable,
lose and nothing to gain.
sensible
and
• /•>
patriotic - as
any
You and I and the American
group in the land.
/ /'
Let
me
repeat
that
it
is
people all face a grave responsi-'
not: unreasonable
or
unfair to
bility. I am confident that in the
ask
the farmer to ' accept
the
present general level of prices for face of the danger of inflation

businessmen

,Why is it that

has

the average exactly the same per¬

—113%.

every

in
that
demanded the removal of all price
land, such

ment

contrary notwithstanding!"

It is, of course, expanding pro¬
duction which will bring us to the

be

economy*
will be.

vital

by

group

,

necessary

without blowing

our;

.

attacked
pressure

.

trous

that.

clear

be

threatened

a

Why is it
business forecast in¬
dicates rapid increases in produc¬
tion throughout 1946?
Why are

a

; / Very

cess—will

plished in record time?

index which has been held steady
sfnc© May 1943,; would immediate¬
ly rise.more than 8%. This would

subsidies.

earliest

unquestionably

-./'If food subsidies were with¬
drawn^ fo°d prices would rise
retail sales continuing to higher
promptly and dangerously.
The and. still

force

the

jeverybody that the Congress, no tionary crisis.
break-through. lless than the Executive Branch of
In the past four years of
price
the
Government, is /determined and rent controls
Congress has
seal off the bulge, and continue to 'that inflation shall not come. UnI courageously resisted the pres¬
hold the line where if is.
This ia jder other circumstances I would sures of these groups.
Congress
not urge the re-enactment of the
our new- program.. It is a
has consistently turned down their
program
that will/work.;; It is
without amendment. periodic
a/program iegislatiori
drives
for
needlessly
that, will ,'stabilize the American, But the dangers today are great.
higher prices, rents and profits. By
economy/ ; To/,those/ .people who !Any■ sign - of weakness. will be taking this stand Congress has so
are;/betting on / inflation/in/ the quickly and greedily seized upon far saved the people scores of bil¬
stock market and in the commod¬ jjby/ the / speculators;. apd ; other
lion?; of dollars / and prevented a
enemies/of; inf lationl control;/ De/ disastrous inflation.
itymar^ts*-let/m^
/ Over
and
lay in reaching a decision will do 'over again on this vital issue Con¬
betting on thpr,wrong horse. There
and

that

Continued Subidies Favored

r

at

We: must stop the break-through,

.

flationary

(if

policy and its effects on our econ¬
omy. We have a bulge in, our line

.

,

.

,

price,/ and- wage

record clearly proves that this is
in farm income
nonsense.
During the war indus¬
they expected six months ago has
trial and farm production under
failed, to materialize
largely hep. price control rose
fully five times
cause total factory payrolls in our
as much as in World WSf I.
To¬
cities did not drop to the extent
day production is surely at the
expected
because employment
highest point ever achieved in
J^eld up and. increases in. wage
peacetime.
Unemployment is at
rates offset in part the loss in
the
lowest
peacetime
point in
take-home pay due to a shorter
20 years with as many people on
work week.
our payrolls as in our best war¬
It is not too much to say that time year.
our farmers today hold the
key to
What are those 52 million work¬
economic stabilization largely in
ers doing if they are not
produc¬
their hands. For unless food sub¬
ing? Why is it that industry after
sidies are maintained beyond
July
industry, is crying. for more and
1st the control of the present in¬
more

decrease

>

irresponsible

period of the

>

farm-;

our

after seasonal adjustments,
2% higher than in August.

ers,

possible moment the stabilization

; So

income.

When the experts stress; the gains
Which/our; farmers have, made

"

amendment

people," had"

?j?uy - 9 % of our' national

■

and rent controls during the most

critical

and',

a■

/"

992

THE COMMERCIAL 8c FINANCIAL CHRONICLE

Thursday, February 21, 1946*

&%jf

realities*; officials of; the United
States and ;Great,: Britain; labored
for months, to .complete an agree¬

/W'/rt

(Continued from page 965) ^ ■
oblivious to the fact - that
regulation is like a tungus, non-

|| that they will make available for
'

seem

irritating in early stages;but dif¬
ficult to remove "completely once
it establishes- itself. - Experience

-that war-born regimenta¬
tion is rarely overcome unless it
is eliminated at once when the

proves

threat

to

Moreover,

security has
it is easy to

circumstances
entire

under

distribution

passed.
project

or some of its compo¬
nents rai^ht he cJh»"*"*ed by

pOint

meddlers,

utlt yicbcu.i^.

Jf private enterprise is to

;

un-

dertake the equitable distribution
of commodities with a minimum

•

of

>
v

Allotments Essential

products ' from

;

\

.

interference- during the period of transition which
we. face, it will- be imperative that
a
definite
set-aside
be
agreed
upon for overseas shipment. There
government

••'.is-

other

no

than

source

the

a

•of the

v

.

;

ucts

we

similate

w;ithhold from export sale

domestic ' requirements
are unfulfilled.;
Itv is traditional
in this' country - that we have- exported our surpluses to dispose of
them somehow; now we face a
period when we shall have to
because

.

;

share, part of

what

want

we

selves.

United

States

- ■>

Britain and her Dominions

maintain export totals more than
twice as high as were reached in

our¬

*

tion to form

a

'

Lest you think that I am
a

^

any

raising

visionary thesis* let

relate

me

an

after V-J Day With a large order

for steel of

a type in short supply,
great demand.
Even Our
largest producers could not have
filled the requisition without de•nying shipments for a considerable; period to overseas customers

and in

of many

years' standing. But the
were insistent, and in¬
dicated
that
they
would
use
"diplomatic" pressure fn Wash¬
ington to, obtain priority through
unexpired emergency legislation
One.

demands

of

the

steel

smaller

which

panies

not

were

had

less

.

eliminated

Washington
alized that

com¬

serious

markets
1939

marketing machinery of sev¬
eral of our largest exporters, built
up
over
many years of effort,
might easily have been rendered
against

the

time

periods

dents

of

less

to

be other

the

over

the

and
not

will

next

frenzied

few
who

years

does

ing now to allocate a definite per¬
centage of his output for over-!
seas
sale, risks continued and
expanding political interference
in our economy.
If we want to
minimize government control we
have
got to regulate ourselves

:

the part of

Departip^nt of

competitor

tablishing such a policy
industry-wide basis. It is
sion

that

make for

London has yet re¬

mere

they
not

restoration

existed

suffice

to

of

before
attain

esan

ties, and satisfy most wants, is all
too short to prepare for the suc¬
ceeding phase, which is to provide
future markets to keep the pro¬

^deci¬

producer; must
himself, and the export

ufacturers

I

know

Some
have

man-

j

an-'

nounced, in the face of consider¬
able opposition from their domes-

the' United States*
;

current

Britain

finds

herself

particularly, T
would

never

,

food

to

as

certain • she
foregone the

am

have

trade

advantages she agrees to re¬
linquish; The United States gains
in

Empire is

.

a

For individual

tax-payers

had

came

1939

in

need

income? $6.94*' •

$10,000 gross income (both •
these instances include normal de«^ ductipns); and $11.04- for the $10,-. J
009 tflxahle income* Any payment^ ;;
for

a

Britain made at all would serve .tp^; 3

proportion*^

red uce these- amounts

ally.

^




I

,

■

;

In return for the- risk of having : 1/
to provide these amounts through * *
-

additional* levies*

the

-

/

taxpayer,I

corporate and individual, ha^ Brit* *
available for current commercial ain's pledge* endosed by Parlia-transactions after the period of P ment, that sterling, areas will be
year has elapsed, and to seek a re¬
reopened to international trade,*,
duction 7i. of •; Empire r preference that Empire preferences
will; be ■
rates, a policy in which the Do¬ reviewed, lowered where possible

-

-

000,000.

but

assistance.

The

benefit to

time

his

during the next five years, as re¬

is to be repaid with
over
the
following 5C

interest

to

inktalL

annual

in "equal

our

whole economy

pocketbook.

own

;

not

of

wealth,

securities;

but of dollars and

readily

negotiable

in

i

There:

I

have

.and; ;'V

That is

inaccurate statement, to use a;

noted

because

sibly

their

eco¬

that

the

world financial markets, and ow¬

nomic

ing her dominions* colonies and
other
important
countries
in

tremely vocal critics do not pos¬
sess.
Instead there ha s been re¬

-

nearly
credits
her to

course

ex¬

to

to Britain that is easy

pomic odds.

.

large part of the world,

a

we

have

built

U.

this

"mortgage"

.

The reaction thus far to the first

nations anxious for devel¬
opment, or on'a sdale that bvert-

uve

of the. xaCt txtat there js as yet

'tr.'i

...

n

i; 'Mi;

,

i

1

i

a-

acea

war

«

rx-

"-xnnr.

a

*

stimulated here.'4

wi ta t^ese* stern

-

political figures with bias and
; astigmatism
have

and

economic

:

caused. These critics have
no:

of: nationalization, is pro¬

plan of their ;

comprehensive

own

unshackle

to

trade;: and;

;

-

offered

international v
cannqt >
world divided 5

ithis- .country-

jected—-plenty, of printing presses prosper long in a
unlimited production of. ite into blocs. from which it: is com- ;
mercially excluded; The only al¬
currency alone are required
It would be much more log'eal tc ternative in view that I know- of ♦
for,

own

.

national

impossible .to. answer those
coiidemn Britain "whatever

It is
who
—.11

J

—

i.l_

_

World. 'There

economic afeiy. a.

t>

",,&/■

'

hope that it may overcome rome ;
of the confusion which publicists

threat

tually would support the greatly' the issue, and regardless of the re..-.J
.'Cf
+n
productive *: capacmis suit to the United-States and the

i-vk

Which the

is indica-

.

I submit this

coupled with other barriers I haVe assert that our failurerio confirm is a continuance of world unrest, ;
mentioned, makes it unlikely that the agreement would make inevit¬ with progressive political disinte- world commerce could be reestab¬ able the adoption of state trading
gration everywhere, .due to widelished quickly enough to avoid in export and import as a pritisb
Spread unemployment and inter- •
serious
political
subversion
in government monopoly.

increased

this direction

future trade

many

S.-Brjtish Financial Accord*

in

on

;

somewhat cynical
analysis of the proposed United ■
States-British agreement in the •
\

government, labor or other, need?
the funds of another country if s
!>ro£?ram

;

thirties, and ;
the advent of the depression.
Al-.;;.;
together she remitted more than ?*;;
$2,000,000,000 at that time, which *
is hardly to be labelled "repudia- :
tion", and she discont'nued pay-■
ment completely in 1933 only in ^
the face of insurmountable; qcp"* iff action of the early

pos¬

involve

they

discernment

use,

,

.

are

not

,,

■».<

after the last war.

us

an

?

-

Britain's

The point is made in opposition
that Britain repudiated her debt

quired, and
years
ments.

on

whether laborer,

credit

set up may be used at any

repudiation

Nor4 is-there an individual,
farmer or pro-;
fessional man, who can afford .to
refuse his small part of the tax'
hazard as againstthe, probable
part.

our

national

we

of

cost

Ajl of the other provipart represent poli-

_

siohs'oh

.J

-are

"minority

x

1

fortunwho^ cherish

those

The

ft

An

---

:

misery, i> and

of-war.""

-

Secretary

of

Byrnes#- recapitulated
ages of

.t .3 •

'.izuwt '•

U;

ill 7"

-J'

constant

r

'■

the" proposed

-

State,

y'Mr^;

.the advant*

agrecmenLinj;.
♦

jj u ■

1.

*

.'jlVhat Britain;Gives.'.^

\,; \

of

lation of dollars and her portfolio
of investments for trade with us;

taken

'

i

v

it works out at 84 cents per year
for the-$3*500 gross-

everything, yies that we have been trying to
establish, for years, none ,too suc¬
and she bought indiscriminately
cessfully without Britain's inter¬
as we did later, using her accumu¬

Britain

step Washington and London have

tic.sales managex's aha

t

hostilities

When

ducers than they overcame during
the war period*
The time it will, porters of industrial and agricul¬
take to surmount current difficul¬ tural
products.
The existence of

each

organization.

more

trade of

executive is remiss in his respon¬ duction rrachme
see to it that
busy indefinitely.
the
principle is : established in!
own

it

for

which they may exercise over the
next decade, with probable injury
to the interests of United States ex¬

sibility who does not
his

made

reauirement for all kinds of goods
presents fewer problems to pro¬

Justice prevents coordinate ^action
on

preferential trading
soon

difficult

rific backlog of immediate world

the past.

the attitude of the

Were it not for the desper¬
situation
in
which

ceive.
ate

.

.

effectively thqn we
Unfortunately,

more

re¬

deep-seated antagonism
to inspire ir
this country on the basis of rea
or
imagined mistakes she ha?
during
credits made in past policy, and in some
mitments
we
have undertaken, Britain
agreed to liquidate by sup¬ cases to a sudden and unusual
both expressed and implied. " 1
plying manufactured and other concern for our own.financial po¬
It is in this phase of irie postwar commodities as soon as
The least sensible argu¬
possible sition.
that
has
been
advanced
problem that government can be postwar.
The result is that the ment
much more helpful than it can in
British, though "financially em¬ against the proposed credit sug¬
barrassed" at the moment, in ef¬ gests that the proceeds may b*
in scheduling shipments. The ter¬
No
fect have an option on the foreign used in soc'al experiment;

orderly distribution by decid¬

much

which

more

of undeveloped areas such as
China, India and others is an. ur¬ Eurone and Latin America
gent requirement if there is to be $15,000,000,000 in sterling
continuing world commercial ac¬ that were set up to enable
tivity sufficient' to- sustain and make essential purchases
eventually to liquidate the com¬ the war period*
These

help to forestall their danger

have in

will

or
a

ed

such inci¬

manufacturer

as

try in foreign trade.
Cultivation
on a basis hitherto never attempt¬

demand.

There

a

would not solve the long-term eco¬
nomic problem of either coun¬

when it may sorely be needed to
stabilize their production curves

during

The

several intelligent polite phrase, because Britain did
meet the payments she undertook
conclusion was that a redivision
since, have been pre-emptive. She questions that one might raise in
to make until our ih-advised tarof prewar world trade totals alone
finds herself; now* impoverished opposition to the agreement, but

the

as

and

year

extending, sterling credits to
their
goals,
I
elaborated
this most bther nations; The inaugura¬
viewpoint in an address I made tion1of lend-lease did little to re¬
in. Montreal a few days ago, and lieve the British ih tbteir overall
there is hardly time to repeat the
crisis.
Britain's requirements for
reasoning here at any length. Its food alone, all during the war and

rangement had not been possible

ineffective

competitors, for

as

time at least, but I suggest neither

met.

tually undertook to fill the Russian
requirements.
If this ar¬
.

union

an average.-:

pprtant v suppliers, Germany and
Japan,; have ' been
practically

commitments to commercially es¬
tablished overseas buyers, even¬
;

come.

is familiar.

displayed in Parliament
by the British public in ac¬
cepting the terms of the document
plainly
demonstrates that they
fear they, may be giving up ulti¬
mately more, than they now re¬

-

Russians

if % their

$10

say

within the

man

luctance

of

exporters
minions must concur. Additional¬ and in no case increased, and that ri
Similarly the British" demon-* in this country, whether of indus¬
ly Britain undertakes to support we will have British cooperation v
strate .thatthey ; must
achieve trial or agricultural products, to
the United • States in negotiating in tearing down other commercial
"
much larger foreign trade totals sell to the Empire.
In the later
for the lowering of trade barries restrictions that exist throughout
than ever before; if they are to thirties,
other
nations
evolved
throughout the rest of the world, f th^ world. Every business man in
return to standards of living that trade barriers of various kinds to
The chief new commitment of the United" States takes; greater
Will Insure political stability in an guaM "their- economies. ; These
the United States in the agreement risks daily for much less possible. economy that suffered much more; measures were taken as protection
acutely than we did during the chiefly against the ruthless meth¬ is the provision of a credit of $3,- gain—a single order obtained as |
past; six years; - v;.•*■.'~:;Q'/*;;;■ ods of the totalitarian countries, 750,000,000, with which is consol¬ the result of these relaxed ^controls ¥
Both
the " United
States
and avid in war preparation, but they idated a funding of the payment from territory not now available,
for sales cultivation, would more
Britain will benefit to some ex¬ served equally to interfere with for lend-lease supplies already de*
tent -from the fact that two im- the commerce of others, including livered, making a total of $1,400,- than compensate for any possible

incident that took place recently.
Russia came into this market long

-

year,; some

prewar

billions annually for

rhetorical specter to support a

a

later undertook joint ac¬

two

or

.

both present and future pros¬
pect, because immediate stability

business
and

,

henceforth

must

'

the national debt a; ^

$3,750,000,000 which, as, ;
tax-payers, the individuals and
business, enterprises in this coun-*.
try would have to make up.
At:
present tax rates (which are high*; >
and should i>e progressively re*
duced), and. on the basis of thecurrent federal budget (also high
and due for. reduction), and as-»,
suming national income of $130,•• ^
000,000,000 (a low figure, almost v
certain to be increased) the cost of ;
additional taxes for corporations,if Britain refused any repayment
at all, would be $1.69 per $1,000 of
net income annually'for 50 years, $.
or $169 for a business with $100,- ';
000 of net income per year, $1,690
for a $1*000,000 corporate net intotal

agreement—its trade aspects. her controls in the corralled ."Ster¬
Let me attempt" to give you a ling Area: or Bloc" through re¬
thumb-nail sketch of the world funding of her debt there and the
provision of dollar exchange from
frade";sithatidn on"V-J Day;,
the proceeds of the credit .• Fur¬
PaHly* at- ieastj^as the result of
ther she agrees to make dollarsour
tariff
action
in
1929-1930.

accomplish these objectives the

v-'

possible loss first,.
repaid any of the,
interest, there would

never

or
added to

be

circuHHr

the

principal

geous

the

Reasonable estimates indicate that

most adverse

V'.

If Britain

«•

widespread ; unemployment
after the present accumulation of
s
pent-up orders has been satisfied.
to

third of them were fa¬

a

open

Reckon

prime re¬
miliar even with the whole of the quisite for the establishment of a
text of the agreement, much less peaceful world, and' because any
general relaxation of commercial
its commercial; implications; ^; ^
restrictions overseas will result in
I shall mak'e'some observations
greater trade op portunity
oh the financial provisions a little
.throughoutthe tyorldv .v
later, but I would, like first to di¬
If ther agreement becomes effecrect ybur kttentiori to wha tl con¬
sider to be the more vital part ob tive; Britain undertakes to relax
than

er

vent

,

.

than casual interest, to learn

an

under the

long-term position in for¬
eign trade* a "give and take" type
:
of underwriting that is hot at all
unusual, and with which every
i

•

mind thai the United,
;
States- stands to gain much more-;
than she could possibly: lose in the I
proposed Britisn. agreement, even ?

stances;-

debt burden and pre¬

our

the

to

it has been over the past through which Britain obtains res¬
few weeks
by poorly 'informed pite from her immediate financial
i
but 'would- sacrifice
commentators. Prejudice, and de¬ difficulties,
liberate falsehood or inexcusable something of her more advanta-

-

United States from which many
things can be obtained that
are
required for the rehabilita¬ ployment," which has as ' many
tion of areas destroyed during the meanings as there are economists
war.
Europe cannot w«m w re¬ with definitions, but it must be
build' until wants are reasonably evident to all that the peacetime
satisfied, here, unless we are pre¬ production index in this country
pared to face further political de¬ will have to be established indefterioration there, ond continuing | initely at levels it< reached prey*
demands upon -us for gifts,4 to viouslyonly
under inexorable
ameliorate suffering, of the prod¬ war conditions, if we are to as¬

,

work

both, providing, in¬

gress, as

denied
during a six-year,"war how many have read the entire
period, arid second from a world¬ document and understand its ram¬
wide but unorganized surge to¬ ifications. ; I have taken such a.
ward the nebulous goal of in¬ vote among writers who furnish
creased living standards.
Legis¬ much of the one-sided argument
lators debate the term "full em¬ in opposition, and found that few¬

the

would

have

more

for

ments

v

;

.

United States to;

Overseas

3

w hich

advantage of

ignorance, have dominated much
of the exposition that has reached
the reader or listener regarding,
the plan.
Practically all of the
emphasis has been on the extern
sion of credit that is proposed, lit¬
tle or none on the stipulations out¬
lined in the agreement that will
help to increase our share of busi¬
ness in important world markets.
It would be interesting to take a
poll 'of an audience like this, com¬
posed largely 6f those Who have a

fact that I limited my prediction
of extraordinary foreign require¬

I shall

as

ment

this interna-

first because it arises from wants

an

industry

cious political

little appreciation of.

; tional" economic dilemma.
I re¬
ternational * working
capital, by
fer,? of course, to the proposed fi¬
nancial and trade accord between way of a credit for England, and
the United States and Great Brit¬ commercial opportunity for outain, about to be discussed in Con¬ delves.; The result was -an accord

comparatively
short ••?• period—say five years at
most.
There is grave danger that
in the interim" we may condition
ourselves'to an artificially high
level of business activity, spurious

which, the

pattern of

expprtthe; same' percentage that
prevailed in the>1937-1939 period,
of their now expanded production;
That will "mean from 8 to 15%,
depending upon the industry in¬
volved. The newcomer to export
may well decide to budget on the
higher figure, because there is
every indication that overseas de¬
mands during the next few years
will be far beyond anything we
have heretofore experienced.
~
I hope you made note of the

prejudice above their;wel*-

their

fare ■and, rt ;is perhaps their privi-*)
lege in a democracy., But it cap
be*. demonstrated- to: those
who,

.

■V

v-*

.

.

Volume

.

163

-

Number 4466

address in New York last week

'•an

as'follows:// \r

:i-XxXlr XX
"If the loan is approved, we

0:;//./ T

can

look

ahead With

consid-

:?>0 erable confidence to
\

"r eral

reduction

gen-

a

tariffs

of

and

0 1 i"' the elimination of preferences;
:

,

'

,/ to

THE COMMERCIAL & FINANCIAL CHRONICLE

sources

of irritation between buy-*
- ,/•/
/

Price

and seller.

er

In recent weeks. the. National
Foreign Trade Council has under¬
•

Li.

action.

.

out of gear

such sub¬
jects in behalf of alt foreign trad¬
ers at these forthcoming interna¬
tional meetings.
It has had to

efit of all.

•

,

■

00. i; "We can look ahead also to a
; : ' loosening, of the grip of cartels. and combines upon world

y.]
00

commerce; to multilateral ar-

-

representatives to act

on

vised.

Right

now

•

produces large amounts of oats
At

corn.

been

the

feed
'•vvv*

,

have

we

problem

a

or

time, I have

where

stockmen

are

having

Shortage
„■

same

getting telephone calls from

Colorado

difficulty getting enough
fatten lambs, ctllU they
milium,
and llicy
me to do
something about it.
to
tu

want

iwiitii

shortage of
grain in general
anH it hrinac
grain in general, and it brings up
new
price problems because the
shortage, indirectly, is largely the

One

result

him some—not next
year, or next

_

of

/■

This is

in process of revision, and
is the time, if ever, for co¬

in

a

effort.
My views re¬
garding the need for a single, na¬

other

vviw

jm.!•*-»-

1

lambs

unless

more

pressing

problems

of

our

in

economy.

he

could

He wants

corn.

get

some

to

me

get

AU

month, but

segments

<

.

going to be able to finish his 9,000

a

most

told me that lit; was iiv/V
he was not
yuuv

man

«...w

'

difficult problem, but
broad sense it is not unlike

the

operative

w

existing price relation-

shins:
ships.

are

this

re-

'

of wheat shortage and

international trade will be carried
on

^

....

The rules under which

•

and have had to be

The Wheat

*

-

Relationships and the Food Markets

r

taken studies that will enable its

(Continued from page 966) "
relationships nave been thrown

a minimum of quotas and
embargoes; to an intelligent
0 ; 0 and restrained resort to Gov- [•double its staff to carry on this
.activity in spite of the fact that its
/ erriment: subsidies; to general
X/
acceptance of the rule that in- members, whose experience {>■' is
V ternational business should be priceless, have always spent much
of their time in formulating: advis¬
; V" conducted on a business basis
V r and not as a phase of political ory opinions that are for the ben¬
'

j

'993

From

Final reports from Europe, which

.

Mexico

come

people

who

New

of

telephone calls from
assure

tonseed cake is

in

the

countries

me

that

cot¬

that

normally depend on imports.
the same time, recent
uit
ume,
reports

At
on

grain stocks in this country show
how

difficult it is

going to be to
promises for
feeding in
leeaing in accordance with

make

good

1 relief
renei

| our

on

our

-earlier plans.

Stocks of wheat

State

own

anticipated,

...buuti

especially

now.

my

just recently available, show

were

that the supply has turned out to
be much smaller than

61

million

been

anticipated.

livestock.

less

were

than

And

is heavier

reason

selling above ceil¬ to

Jan. 1

on

bushels

the

had
chief

feeding Of grain

The

present

feed

rangements for the handling tional organization that will rep¬ All along the line we're up against ing .^XVVJ. They tell iilC IV i» being grain-livestock ratios were estab¬
prices. auc; veil me it is UC1UK
vv
Xj[
of surplus commodities, and to resent all foreign traders effec¬ problems of price relationships as offered at $85 to$90 a ton. Those lished on the basis of the
existence
x
T
aftermath of
;
.^progressive/limitation upon tively at the level of their common an Qftarwalh r\f war. Monday and are black, market
prices,; and they of large grain reserves. Now we
*;// X export restrictions and .price'-;
Tuesday of this week I spent a are based on the
are faced
with the
problems, are too well known to
;

i'

•

an

:00;"i;fixing';arrangerpents ". //// y*
X

■

0

>

in the circumstances

every

citi/

reiterate here.

famine the proposed extension of
credit to Britain in the light of in¬

telligent self and national interest,
and listen no longer to the British-baiters.
If you favor passage
/ of the enabling legislation in Con-,
gress, by all means tell your Rep¬
resentatives: and Senators so, in
<

words, in a letter which
>Js more effective than a telegram
in these days of sinister pressuregroup political coercion.
your own

■IriiWhen the agreement with Brit«<

price

Our Positions in Latin America

But it will set the pat¬

nearly, half the
i trade of the world is governed,
by

; thus

which

providing

a

powerful

ful-

which remaining prob¬
lems could be balanced and re-?
crum

on

in Latin" America, / 1)

ferring
reach

not rer

to the/reports that
intense commercial

now,

of

us

am

difficult.

v

What does

seem

to

me

to be

From

the

farmer's

standpoint,

incidentally, the new pattern of
pression we created th^ere during
spending was probably good. More
the war that we would? have, spe¬
cial

for the

concern

income

economies of

has

southern neighbors when the

in

the hands of Workers

created

.

predict.

The Coming Trade Parley
4""

There is little time left for me

to ' comment

on

other

develop-

Orients in foreign trade that should
have your attention.
I will men¬

*

tion but two of them.

Invitations

"

tablish

•

must take an interest

in these

meetings, because* they will prob¬
ably result in multilateral deci¬
sions that will have a profound
effect on all international com¬
and establish
operation; ..

merce,

"for
'

new

bases

Far

the

East

during

past few months has

caused

and

There

much

is

the

individual

acute, but which might easily be¬
come

It

never

lems.

distressing.

is

trite

sets

to

on

say

that the

the exporters'

Today's trials would be

priorities,

sun

prob¬
un¬

dealing with quotas,
permits,

preferences

and the myriad other contrivances

the results of these confererices* insofar as they' pertain to

that perplex almost to frustration,

tries, through their trade associa¬

its nature eventually will be still

^at' a new
products in which he has a direct
What
interest.
Doubtless many indus¬ kind of world is emerging.
tions; should and will watch the is uncertain, though if I read early
proceedings and present views on indications :
Uright/f foreign trade
matters that directly concern them

>•

will

continue to be the most fas¬
But there are a host
that have to do spe¬ cinating business in the world.
cifically with policy and practice
in foreign trade, at a level which
relates to products of every type
.'and1 character entering into our
..exports < and imports.
These are,
as a

group.

;of questions

'

Brown Bros, Harriman

be

overlooked unless

.likely

to

^careful

Recommendations properly

to

from

steers
soon.

these

that they
They want

black

prices and they want it
iv

market

now.

;;;.VJj 00/0/,/•

•
;

:v;

we

have to feed livestock. To
this balance we shall

can

establish

have to market cattle arid
hogs at

lighter weights
and
poultry flocks sharply.

markets

for

/ No one could foresee how long
the wartime pattern of price rela¬

cull

out

I realize

that this will mean some sacrifice
on the
part of farmers because it
has been profitable to feed
grain
to livestock.

Hogs,
more

[ / -:'■

as you all

know,

consume

than any other class of

corn

livestock,

and the shortage of
big part of our present
difficulties,
Raising
the ceiling price of corn or lower-/
ing the ceiling price of hogs
is

corn

a

feed supply

would have

a

consumption

quick effect on the
of corn because it

would result in
marketing heavy
hogs and feeding hogs to lighter
weights. But the government has
made

the

its

promise to farmers

last December the Office of Price

Administration

told

farmers

to expect an increase in

corn

supports and
price ceilings on hogs were estab¬
lished./ The government made its
promise on April 11, 1945, that the

require

an

increase in

under the law.

Now

we are

corn
v.

faced with

a

prices

•

.

-

-

situa¬

tion
in which we have r made
promises not only on support
prices and price/ceilings for hogs,
.

support price of $13.00
ceiling price of $14.75

and
on

the
hogs

the

Advance
Brown

price relationships established to

contracts

war

encourage

production of livestock

ended; manufacturers had to ? go
products succeeded. In fact, in the
back to making peacetime
goods. light of the present situation/they
They had to think about costs in have been too successful. Now we

relation to

ceilings. Workers

saw

are

faced

not

only

with

promise
move

or

breaking one
another, the logical f
change where

is to make the

it will do the least harm.
Xxxx-X■. •/0./1 '/•;./,•>:/'V:/y/r^/.'/■///:-;//•-//-100v/:<0'xfi

New Hog Price

Ceilings

insuf¬

We are going to discuss with
ficient grain for livestock; in this
hog producers and farm organiza¬
earnings would go down. So they
country, but /with urgent. demand tions a /
have demanded higher
possible /change in hog
pay.
for grain to save human lives
•;
price ceilings designea to fulfill
The point is that in neither in¬
abroad.
And when human lives
the government's commitment and
dustry nor agriculture can we ex¬
are
at .stake and, there; is.. not still
provide an incentive for mar¬
pect to move suddenly from war
enough food available, we cannot
keting hogs at lighter weights.
to a peacetime economy without
ignore the fact that we can take
Specifically, what we are discus¬
making ~ many
adjustments
in care of more '
people by direct sing is a decrease in
the ceiling
price relationships.
"
:
:
0/ feeding of grain than by using it on heavy hogs of
fifty cents a
The most difficult
problems of to produce livestock products for
hundredweight to be offset by an
the moment in
agriculture, as well human food,
increase in the ceiling on
light
as in
industry, arise out of the re¬
weight hogs of fifty cents a hunconversion to a peacetime basis.
Europe Needs Food
dredweight,
thus
providing
a
The present difficult feed situa¬
In half ; of Europe today the premium of a dollar a hundred
tion
is .largely
a
reconversion
urban population is existing on as on light hogs. This if put into ef¬
problem growing out of the rapid
little as 2,000 calories, or less/per fect would be
accompanied by a
changes that have taken place in
day, compared to the 3,260 calories corresponding increase in the sub¬
demand
and *; supply
conditions per day which we estimate the
sidy on light hogs and a correduring the last year.
.'
0;0| people of this country will have sponding decrease in the subsidy
•From all over the
country come during .1946; / Worse than / that; on heavy hogs.
telegrams to the Department of one hundred million people in
/ Other price changes may be
Agriculture complaining about in¬ Europe / are
existing / on / 1,500 necessary to enable us to deal efability to get supplies of corn and calories, or less, per day. /The
fectively/ with other changes in
wheat needed for
feeding all sorts bread ration in France and Italy supril^ and demand.
When we
of animals.
Farmers in the New is half a. loaf per day. / And twosuggested a national goal for soy¬
England States are badly in need thirds of the diet is bread.
The beans last fall, there was every
of poultry
feed, and point out to people of Europe have been eat¬ evidence/ that the fats and oils
me that
they are faced with the ing their own supplies at a rate situ^tiori Would be better before
necessity for liquidation of their that cannot be maintained- / The crushing of the 1946 crop was
flocks if the Department of Agri¬ next six months tvill be worse completed.
Because it appeared
that without overtime pay,

their

-

,

Employees

Brothers

Harriman

&

.

culture

doesn't

come '

to

their

than the last six months<-

The fu¬

that

we

would

need

fewer

soy¬

iri advance Co., 59 Wall Street, New York rescue immediately — not next ture peace of the world,-/the beans, We discussed with every
human rights for which we fought segment of the
to our official participants.
The City, private bankers and mem¬ year, or next month, but now.
industry the ques¬
bers of the New York Stock ExFrom the West Coast come tele¬ the war, will be imperiled if we tion of what the
problems that are common to all
price support
change, announce that the follow¬ grams about shortage of feed for allow starvation to go on un- level should be in
exporters hitherto have seldom
1946,
There
/
/
was
been dealt with on an adequate ing have been advanced from as¬ turkeys, and growers there are unchecked.
general agreement that n
sistant manager to manger: Fred¬ concerned about the
basis. Yet these every-day diffiThe need in Europe is far i^iore lower support would obtain pro¬
possibility of
erick H.
Kingsbury, Joseph. C. a government order limiting the urgent than the reports of Europe¬ duction need?/.
culties affecting us all, whatever
That was
in
Our products, add greatly to the Lucey, Edwin K. Merrill, L. Parks amount of wheat that may go in¬ an food production indicated last November.
Now t.ho fats and oils
Shipley, Gale Willard and Harry to poultry feed because they do fall when plans were made for situation is diiferent.
costs.of -doing business, are often,
We need
,

*

not
ceil¬

ings; that the only reason for any
advance in corn ceilings would be
tionships would be needed when an
increase in parity, which would
the present price

documented, are made

"

on

ceiling prices of hogs, and only

,

in

exporter or importer can do to af•fect
'

new

Butwhen; the

.

the

bearable

,

feed

necessity of
establishing=• a balance between
livestock numbers and ■ the grain

*

Russia

out to 14 nations for a some cynicism south of the Rio
meeting J shortly hi''' London at Grande.
Any opportunity there
which there is to be discussion of
may be
to show even a slight
a mutual lowering of trade bar¬
riers. ' This gathering is prelim¬ weighting of the balance in favor
inary to a larger conference later of Latin American customers over
in the year that will take in all the next few months'will help to
members of the United Nations
compose a problem that is not yet
Organization. Every foreign trad¬
er

to

hope to market
relief

northeastern

would continue until Sept/1/1946.
have been, are .considered
but on food to prevent starvation
farmers-markets toward which he But the
following month Germany
by every other 'nation in the
In Europe.
now may look with 'confidence as
And when, because
surrendered and in less than fiye
Pan American Unipn to be a guar¬
of new conditions beyond our con¬
long as there is a continuance of months from > that
antee of treatment equal to that
Lime/; Jaoan
trol, we are unable to keep all of
full employment and good wages.
surrendered.
And once again the
we accord to
our home market.
our promises and ate faced with
situation / changed / rapidly. 0The
Our preoccupation with Europe,
Price Adjustments Essential
the alternative of

may

have gone

C*

the

,

a

danger in Latin America is the im¬

•

can

cake

in

of my State for cottonseed

in the automotive

a bigger demand for
'solved; and enable us to say with
food, particularly for the more
(considerable assurance that the fighting ended. The resolutions at expensive foods such as t
meat;
the Mexico City meeting last year,
productive plant we have availmilk; eggs; fresh fruits and veg¬
able in agriculture and industry culminating in the Act of Chaoul- etables. This has
tended to es¬
/? will be fully employed for as long tepec, adroitly worded though they

reasonable men

people

corner

,

activity there by the British or
Swedes,.the Swiss or the Russians;

our

as

desperate need

of

.

And finally, there is some rea¬
son for concern over our position

.

tern

whole economy.
We
evidence of those disturb¬

•

.

industry, Prices Favorable to Feeding Grain
industry, and the meat
/ Now/what's the trouble?, Well;
packing industry. And in the De¬
the immediate trouble is that we
partment of Agriculture,* as you
have built up a system of
price
might suspect, we are very con¬
scious of the problems in the meat relationships favorable to feeding
grain to- livestock. / It was done
packing industry.
deliberately because of the need
In all of our great industries for increased
production of live¬
war demands were so great and
stock products.
When this pat¬
so urgent that workers were en¬
tern of price relationships was
couraged to put in rnany hours of established we were short of meat
overtime. ; Some of/. them' made and we needed
more poultry and
nearly twice as much money as more eggs. And a price relation¬
they Would have made from a ship was fixed that would encour¬
normal five-day week. The planes
age people to produce more of
and tanks had to.be built, and the
these products.
We were trying,
extra pay workers received was
to divert more grain into livestock
part of the cost. At the same time,
feeding. But that" was a war stiuathe good pay set new patterns of
tion and we were doing our best
spending.
to meet the needs of war.

;\':X S'X 00 A'///

These

"will not.

our

,

the steel

tors^ with ' Washington's approval.

:> passage

■

/were
being (dis¬
This discussion took place
of disturbances now af¬

ances

trade rivals have been pre¬
disposed of in Congress by
vented so long from offering their
or rejection, it will be
wares, and there is such great de¬
1
possible to see a little more clear¬
ly into the future of our foreign mand for commodities,, that we
trade.' I do not suggest that adop- should not begrudge them an op¬
ition of this single measure will portunity of early market culti¬
vation to regain what they can of
-settle all of our international com-,
mercial difficulties; certainly it their prewar status, which, will be
•lain is

-

ceilings

can see

eign traders in this "community"
activity assigned to it by its direc¬
:■

1\/T^va

fecting

your be¬
half and in the interest of all for¬

■/

,

because

cussed.

that; it

,

ixrnr*

•

.

great deal of time at the White
House where wage problems and

Whether you feel

you should be a member or not;
the National Foreign Trade Coun¬

the United States and par¬
ticularly those who have a direct cil' wants; you to know
stake in foreign trade, must ex- holds a watching brief on

zen of

1

.unnecessary,

and. are frequently




L, Wills.

not

have

nearby

an

area

that

supplying

U. S.

food for relief.

(Continued

on page

994)

•

TOE COMMERCIAL & FINANCIAL CHRONICLE

994

British Loan

Relationships and the Food Markets
993)
at least the production called for
in the 1946 goal.
And it may be
that the goal should be increased,
We are going to give further con¬
sideration to that question.
The
(Continued from

page

world

supply of fats and oils ap¬
is going to be smaller
than was anticipated.
Movement
of fats and oils from Pacific Is¬

.

parently

land

sources

is getting under way

than was expected.
Relief needs in war-torn countries
slowly

more

greater than was in¬
dicated only a few months ago. In
the meantime, representatives of
the soybean industry now tell us
that they believe a support price
as high
as last year, which was
$2.04 per hundred, will be neces¬
sary to get the production needed
to meet the goal this year.
We
have discussed this matter with
much

are

;

"

Collet, the Economic Sta¬
bilization Administrator, and have
recommended
that
last
year's
Judge

level of $2.04 be

support
tinued.

con¬

*

;

'

Difficutlies in Holding Price
Relationships

V

-

/

.

as

situation
now, nor the demand and the mar¬
kets for food, the best price rela¬
tionships we could establish for
present conditions would not fit
changed .conditions of the future.
Since

the

fit

not

do

supply

know

we

the

future

is

certain to bring change, the time
/ to

-

•

start thinking and planning to

;deal with the problem of price
relationships as they affect markets for food is now, And while

.

expect continued need for

/we can

change in price relationships, the

.

.

<

price support period ahead, pro¬
vided by Congress, does give us
time to work out means of adjust¬
/

ing ourselves to a peacetime econ?
omy.
Furthermore, the present
world
food, shortage,
and * the
xxrgent need for food for relief
feeding,; pushes further into - the
future the time when we shall be

faced with

ficult

some

price

of the most dif¬

problems (for
1

commodities.

■

some

*,

Europe is short of food now,
partly because of drought, but also
because of the disruption of war,
the loss of equipment, and the
lack

fertilizer.

of

of

soils

The

ho longer

can

afford.

/

heavy

Our soils have carried a

(Continued from
Britain is that if

we

do not make

sag.

Europe are starved because they
have been pushed so hard for pro¬
duction during the war, and be¬
cause
supplies of fertilizer have
f been short there throughout the.
war.
It may take a long time
for Europe to get back to what
will eventually be normal produc¬
tion.
We can't worry about a
wheat surplus now or next year.
In fact, there will be need for

.

Farmers want the best pos-,
has never equalled the demand.
for food, and we We do not have as much now of
know that kind of market comes
many foods as consumers of the
only with full employment and a United States would like. We need

want.

sible

market

high level of purchasing

power.
the nation as

for

good

look

volved

in

'

i

v*

&

..

real

British

the

posal, ;
-,1 *.

the

at

;<£

facts

Loan

in¬

<
Vafe 'X"t-; fi<

.■

<v~.. ■

Europe.
A New Era in Agriculture
Neither farmers nor
Prewar
production
is not the
In conclusion, let me move,away
a whole can afford unemployment.
basis upon which to plan postwar
frohi the questions that engross
Let me give an example of what
production.
This is a time , to our attention from
day to day and
it would cost Iowa farmers to have look
ahead, not back. With great ask
you to take a fresh look at
•unemployment.;;,; - -;//;;;•;/;;/ /:///;.• ••• //* industrial and business expansion
/
*
Over1-"the
past -twenty, years in thef making, - agriculture' will whe^e wO.'stand; ■ f, ■■
We shafl^have to make many,
there has been a strikingly close havfe markets for Expanded pro¬
decisions ; in/ this critical period
relationship between the spend¬ duction too. • Full employment in
we : make
able income of consumers in this this country can bring agricultural of/reconversion; / As
them—not only the,.big/ones but
country and the cash receipts of prosperity Such as we have never
Iowa farmers.
Every 'time total before known in peacetime. - -t' • the/dayttbrday decisions; too^~we
need to keep the future in mind.
consumer
income has fallen by
We want our decisions to add up
Favors Loan to Britain
ten billion dollars, Iowa farmers
to something more desirable than
have lost one hundred and thirty '-..And while we are looking to
[
million dollars in sales.
Thati markets for the future let's not we have had in the past, for agri¬
more

food

culture and the whole nation,
of piore than six overlook the importance of/the;
p v
We may as well realize that we
hiindred dollars for each of Iowa's; foreign market.
One big step .to¬
>
two hundred thousand farmers. As ward opening up world trade is have entered a new era.

means

loss

a

'

we might expect, an equally close
relationship has existed over the!
past "twenty- years between total'
employment and total consumer

potential markets.
producing more of

We

,

the ^proposed British Loan, which
been so widely discussed in
recent weeks.
Now I hope you

employed have knocked three and
one-half billion dollars off of total:

own

income. Each million workers

consumer

*

income.

each million

things

will

take, "and
less than they will want of pfhers.
We know from* past experience
that a surplus of any. commodity
than

can

the

be

waste.
.

markets

burden

a

and' result

in

We know, too, that shortr

with high prices, often
fail to- bring ,the best returns to
ages, even

producers

because

income

is

well

as
we

have

the farmer's

price.

If
of
in

dependent

on

volume as

J
a

peacetime pattern

un¬

Consequently,

unemployed,

benefit—for the mutual bene-.1 for that is the.real meaning of -the
fit of this country and the United, atomic bomb.
We have made a

men

credit

and other items which

we

other

reasons,

even i

a

price relationships that; results
surpluses of some commodities

loss Iowa

unemployment—that's
farmers can't afford.

Apart from their desire to make
decent

incomes, farmers like to

produce.

But they

begin to lose;

the opportunity

tb produce when
city workers lose their jobs.
If
relationship
between
food
prices and prices of other, com¬
the

modities

were

to remain

each million workers

would

mean

a

constant,

unemployed

reduction of 1% in

total food

consumption below the
full
employment level.
/A/ socalled "moderate" unemployment
of

five

million

call for reduced

workers

would

production equiv¬

alent to the

withdrawal of 15

to

20,000,600

of cropland
were to remain

if
at

food

well cause needless waste of soil

their

acres

prices

normal

ratio

to

earlier

of which we ' don't
value-^-a total of per¬

know the

haps

as

much

as

That is what
are

35 billion dollars.
have given arid

we

to^^ give^^ to^^Ureat

Britairi.,; /

r/CSenatbr' Wheeler

during

j

^

t y<.

the

bourse of the discussion mentioned
that the funds proposed for the
British loan could be

able
4

used

billion

a Way,"he

attention

at

more

home/; 'Tf

profit¬

haVe
dollars -more' to* give"
said, "let us turn oxfr
to
the
United States,
we

.

Wfhere

we have some.very difficult;
b^oblems.; We have millions of
veterans coming back.
They are
going to makeKiarge ; demands
upon the country. We have slums

all over the United States where
the money could be used profit¬

ably for the public good. /While I
sympathize with Great Britain and
that she finds herself

-Senator

-Johnson,' called the
as inflationary ?. in
following statehfxent: //,
/

proposed loan
the
,

"Under present Treasury ar¬
rangements every dollar of United
States bonds sold to our citizens is
ihw actual' reality printing-pre^s

tnbneyj and adds to

trur

buying

power.

If the British loan is made

by

Treasury, the currency of
will be inflated to the

our

this country

full/extent of;;the-loan.".?

^ To offset this, anb/at^the Saifie

time grant financial aid to Britain,
Senator Johnson referred to his
bill in

est

the

Senate, introduced, as
to the / Administra¬

substitute

and

basis.

.

substitute^^for the^dmin^

principal is paid by the

The bonds would be of dis¬

tinctive design and faouid bear .on
their, face a statement to the ef- i

feet that they are not back by the
credit of or guaranteed by the
Uhited States.
The sale of /the

oped food production techniques
As a producer and seller, he stands to the
point that, if used, can
to gain from it. '
/ /'/.•
provide everyone in the world
This loan would provide the with enough food.
The Food; and
British with the dollars they badly t Agriculture Organization is start¬
need to set their trade in motion: ing : out to make this knowledge

for

or

ex¬

British Government would be paid
to these investors on a pro rata

no

direct interest in the British Loan.

"moderate"

and shortages of others, we mav




of

loan bill," the Senator
stated, "and would authorize the
Treasury to sell special bonds to
American investors on a voluntarybasis, the proceeds to go to Brit¬
ain^ and in turn whatever inter¬

has

Kingdom../ It is a trade loan, one; beginningtoward a • system of
matter how far distant froha Iowa that we are counting on to help world government4-for that is the
or how widely scattered, have cost open up trade channels and
mar-j purpose of the United Nations
Iowa ;•/ farmers
just
over
two kets all over the world. And that Organization. We have discovered
hundred dollars each in annual is why the American farmer has af that at last the world has devel¬

their

will; be

some

line

transferred,

;': 4Tt's O[
istration

The
peacetime
challenge
to
agricultiire is the challenge of a
new era.
We have gone through
have not been mislfed by some of a titantic military struggle.
We
the comments on this proposal. In have started to harness and* use
my opinion, it is a loan for our- the basic power of the universe—

jobs

in relation to the markets for food,
farmers will not be in a position

of

proposed

tending for 55 years, 3 billion 750
million; plus ships and destroyers

tion's loan measure.

„

If we fail to establish peacetime;
under full employment. But think
price relationships that will give of it!/ One thousand dollars loss
us the right pattern of production
in
cash
sales per
farm under

advantage

dollars; loan for the payment of
lend-lease items, 650 million;

new

the

a

bonds, would serve

.

full

proposed to be for¬

now

given, amount to about 25 billion

starving

'

„

take

shipped,

in, first -of all I am thinking «of
the United States of Atnarica." •

dum

loan.

.

to

nearly 6 billion dollars; lendgoods and services already

lease

the plight

pro¬

Five million unemployed would \
One of the problems of the re- j
raise that cost to one thousand'
period and the years
dollars
per farm.
And that is \
that follow is to establish a
pro-\
what economists call "moderate"
duction pattern fitted to the mar'kets for food. To do this we shall unemployment—five million over (
and above the rather small num¬ Sales to
available to the nations tfyat need
have to have the right kind of:
Britain are important to
ber. that would be temporarily | us.
We owe it;to ourselves and to
Britain was the leading mar¬ it.
price
relationships
among
the
unemployed because of Changing ket for U. S. exports in prewar j posterity to face this new era with
/ farm Commodities.

■

that Brit¬
ain's debt to lus from the first war

was

,

conversion

:

the people of the world. J call

or

your attention to the fact

-

cash sales.

The Production Pattern

\

complish that by loaning people
money—the people of England, or
the people of the United
States,

.

,

bit of food called for in the
goals for 1946.
every

,

and get
down to work and produce, more
goods. We are not going to ac¬

>

•

965)

body to tighten their belts

it, the British Empire will col¬
lapse, and if the British Empire
It is clear enoughthat even collapses, then Russia will take
over
the whole show.: That is',
"moderate" unemployment; would
leave
farmers
faced
with
the Russia will take not only all of
have greatly increased the acreage alternatives of price supports, pro¬ Europe, but all of Asia. At least,
of intertilled crops that expose the duction controls, and special pro¬ that argument is being advanced
soil to erosion and deplete fertil¬ grams; to
expand consumption/ by some people as a reason for the
loan. There may be something iri
ity. You have plowed up pasture But all of these programs together1
land acreage that needs to be re¬ Would fall far short of the magical it, but, frankly, I don't. believe
that the loan that we are asked tb
stored to permanent pasture. You effect of putting the unemployed
have a big conservation job ahead workers back on the job.
Unem¬ make, of nearly four billion dol¬
of you as soon as the effects of ployed workers anywhere mean lars, is going to save the situation
war
and the aftermath of war reduced farm income everywhere. if it is that bad. If that is the pur¬
pose of the loan, then immediately
cease
to bring urgent require¬
we
will be' getting deeper and
ments for food.;: Throughout the
More Production Needed
deeper into the European and Asi¬
United States we need to conserve
/
Right now the great need is for atic
conflict between Russia and
and'rebuild our soil resources in
production, not only to meet each the British
Empire. And let me
order that we shall always be able
requirement for food, but as a add this:
The American people
to supply markets for food in the
weapon against inflation, and pro¬
are not in favor of keeping the
future. ; Our population has been
duction has been uppermost in bur
people .of India or the people in
increasing rapidly in recent years,
objectives in the > Department /of the Dutch East Indies or in
Hong
and right now we have more than
Agriculture Whenever questions of
Kbng/iri subjection, and they ore;
seven million more mouths to feed
price policy have been considered.
hof m^avor of putting up moneyi
in this country than we had five There
may be situations in which so that a few
people in Europe cari
years ago,
.
a little higher price wbdld/be iess
control those/countries. -I don't
costly in the end than the alterna¬ believe American blood was sacri¬
Price Ceilings and Balanced
tives of shortages and black mar¬
ficed to save the British Empire
Economy
;
kets,
and / the inflationary in¬ and tbe Dutch Empire in the Far
Pricing policies of the future fluences of forward purchases,
East; arid in the South Pacific; is
must continue to recognize the.
which are often intended by the that what
we went to war for?" "
necessity of keeping farm prices purchaser as a hedge: agaihst • 'in¬
/ To these remarks, the Senator,
in the proper relationship to other
flation.
Even a surplus would;be;
in/speaking ot a solution of the
prices, because that is the only less costly than uncontrolled in¬
British problem, added:
~
■ * •.
'
way to have a balanced national
flation.
But this is no time to ^ "The solution of the
problem of
economy.
And a balanced nation¬ fear the danger of farm surpluses.
England is the same as the solu¬
al economy is basic to achieving The
expanded production of agri¬ tion of the poblems of the rest of
the abundance, full employment,
culture during the last four years the
world, and that is for everyand full production that we all to a
peak one-third above prewar
would

during the war, and one
of the big problems ahead is to
conserve and rebuild them.
Here
in Iowa to meet war needs you
burden

Opposed

page

■

the' price relationships
established less than a year ago
Just

America

prices;
Otherwise, farm prices
would break sharply and the ratio
of farm prices to non-farm prices

and that is something

resources,

Thursday, February 21 • ! 946

in

as a. refererir
America ^oh the British

It would be

'ant'i-ihflatipn-

ary, not inflationary, and if such
an investment is not attractive tb
American

investors, it certainly is
not right to unload ft on theTiardBut, we must not; pressed American, taxpayer agalhs't
years and took large quantities of
his will."
farm products.
/': ;
We cannot afford forget what we have learned. / / :
not to help put our best customer
Agriculture's broad obj ectives? I/rRoth Senator Wheeler./and; Sen¬
on its feet again. / Actually, our
for the pdstwar period look to-, ator Johnson expressed doubt that
gains should be on a much wider ward a well-balanced, enduring .Congress would approve the Brit¬
front than just trade with the and prosperous - economy.
Agri¬ ish loan in its present' form "Un¬
British.
The loan should make it culture
wants,, first / of / all, to less the State Department rallies
possible for the British to joinj produce plenty of food at fair support for this loan." /Senator
with us iri a /frontal- attack on!
prices—to establish a truly "high Johnson; stated V"I .think it would
world
trade
barriers.
Because level of nutrition in the United ;be very, foolish to expect Congress
new

thinking.

.

they have been

so shoft of dollars,
the British have had little choice
but- to
follow
restrictive
trade

r

States;

second,

increased

to

effi¬

support

.

it,/ especially... in 4 an

election /year,".' while.

ciency not only in production but

Wheeler

Senator

expressed the opinion
in procesSsing and marketing farm
policies ^that have discriminated products for the benefit of the: "that unless the country; changes
against the United States and farmer and the ■ country ; as a its attitude toward this loan, Con¬
have hampered
American sales whole;; third, opportunity -to ac¬ gress is not going to enact it'
not only to the United Kingdom,
complish a complete job of con¬
butto other sterling bloc coup- servation of our natural agricul-;
Hans
tries.
|f We, can make the neces-l tural resources — our * soil, our
sary loan to the British, they can water supply, and our forests; and ■•i
Hans Utsch is resuming his infand have agreed to join with us
fourth,' an expanding,; free-mov¬ vestment business,. under the firm
to support international negotia¬
ing trade with other nations to
name of Hans: Utsch' dc Co. • frbrii
tions to remove trade harriers and broaden the base of our, economy.'
discriminations.
The American
Agriculture is setting its /sights offices at 42 Broadway,. New York

non-food farmer

,

.

will

do

well to

'take* a~

high, for the

years

ahead.

.

.

Volume' 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4466

which

Reconstruction and the
(Continued from page 958)

/"://^Z', :/'./' (Continued from page 972)
advancement:
tric

a
surplus of elec¬
adequate transporta¬

power,

tion facilities and

soundly Amer¬

a

"

changes

which is fundamental to

take place in

began to

the economies of the countries in¬

ress,

volved. For several years a

are

steady
stream of lend-lease supplies had
hioved forward from the United
States. to
meet .their
wartime

:
.

//heeds.1 Now, suddenly, they
faced with the necessity of

are
re-

at the same time, their means
obtaining dollar credits to get
goods essential for a start is cut
».r off.
President Truman was fully
of

No

is

the

problems thus creforecast the means of

plants,

to

meet

is

it

and

not

duced
the

fullest extent

the

for the

new

in

-

*

long

to

stabilized

a

is

rida

the

-

with

State

the

is

fill

concentrated,
drated.

big

consistent with changed war con;: ditions and the basic wartime pur¬
poses of lend-lease aid.
Beyond
/ this I
propose that these Allies be
assisted
in
financing necessary
equipment and supplies by the Ex| port-Import Bank.,
\
% ».• \
"Such

assistance

get established and,: in
meantime, the areas which

to

drawback

economy,

Flo¬
into

,

lavishly endowed.

tors. is a production potential said

the

Export-Import Bank are -serving
require fuel, raw materials, trans¬
portation, power, and labor. The
last of these is .readily available
if the equipment for the men to

consistent

is

utilize

t With the enlarged role which'the
Bank should be given in provid-

is

economy

forthcoming and
functioning.
It is

the
our

■

hope that

will be
sufficient to meet all of the emer¬

'/•

ing certain
types of industrial
^ equipment
and
supplies which
other nations may wish to obtain

our

would

sense

climes.

ciency

us

for reconstruction.

conclusion is

based

increases

in

direct

ratio

month-out his production capacity

naturally goes
popular opinion,
the : high

Northern

our

cities,

Contrary

to
even mid-summer
up.

temperature^, in
reach

com¬

dictate

This

less-favored

to the way a man feels; and when
a
worker feels good month-in-

Florida
levels
and

seldom

of

many

the, cooling

breezes from the Atlantic and the

•

from

; over

the premise that human effi¬

on

resources

gency needs .which business
mon

tp;~.be : 20%

Some

and
■/;/ ;.'

chemists

agree

■■

that

...

ments

that

ernmost

in

the

rich,

/

versatile

barely

meeting during 1946. It is impos¬ Gulf
condition the air to a com¬
aspects of reconstruction are of sible to determine exactly what
fortable degree. It is also ^ a time/particular interest to this nation these needs are/ but we are being
honored fact that sunstroke in un¬
■and can most appropriately be fi¬ very careful to avoid the disburse¬
known in any part of the State.
nanced by our own instrumental¬ ment of funds for
projects and
Rated
as
the fastest-growing
ity."
programs which/ are of .such a
State in the Union, Florida, during
tX*'* Shortly thereafter, July 31, 1945,
long-range nature that they in¬
the past five years gained, 18 %
the President signed the Bretton evitably fall within the
province in
permanent population, with
Woods Agreements Act, providing of the World Bank. It would be a
"?■ for an International Fund and an misuse'/and even an abuse of our the greatest concentration occur¬
ring in the larger cities and Indus¬
/-International
Bank
for
Recon¬ lending
authority ; to undertake
trial centers; In the decade, 1930struction and Development and on programs which are
beyond .the
1940, the increase in population
/'• the same day he approved the Ex- interim, stopgap emergency/cate-^
totaled 29.2%—by far the highest'
.port-Import Bank Act of 1945,

State

is provided.

and

of food

around

With

the

Industrial

the

incentive

greatest

men

seeking

industrial
locations
in
Florida is the favorable tax situ¬

ation,

exempting

many

in¬

new

dustries from taxes through 1948.
The absence of State income
tax,

general

sales

tax

the

and

exemption provision on
steads, are all indicative

$5,000
home¬
of

the

legislation that has been enacted
to

cities

stimulate stabilized population

growth.
As of

June, 1945, Florida's war
supply and facility contracts stood
at a level of
$1,472,412,000, exclu¬

gory;

in

fill. the j, The void which has been cre-r
■0 emergency reconstruction needs of ated by the termination of lend\liberate®/^ areas; until the eWorld j-leasehas left.^po'^bfi'i'o^ii&ieri*
equipping

Bank

the

could

Bank

to

into operation,

come

with each other in
industrial growth as
many small¬
er
towns in the fast develop¬

ing interior are making success¬
processing and manu¬
facturing plants. Some 100 new

ful bids for

plants, large and small, have been
established in the State in the
past
two years. A

tem

of

well-distributed

the

Bank

from

an

•part-time Board of Trustees to a
lull-time bi-partisan Board of Di-;
xectors.
It increase^ /the'lendingpower of the Bank from $700 mil-

"

j can industry,

coming

the

in

anxious

to

previous

and municipal
plants, with a capacity of
kilowatts offer abundant

500,000

power resources almost anywhere
in the State. The
growth of power
has been in
keeping with indus¬

trial

and population
growth, increasing in the ten years ending
1944 by 260%, and
producing in

that

Industrial production possibilities
are further reflected in the break¬

tion

Full

utilization

of

have

some

means

and

Florida's

Meeting

factors

three

of

agricul¬
ture, industry and tourism pro¬
vide a flexibility of economy that
i$/inutualiy helpful. Field crops,

the
needs of foreign
helping them restore
economies by / supply¬
prohibition on making loans to
.governments in default on their ing them with goods to process for/ example, with a *1944 farm
obligations' to the Uni ted, / States and cushioning our own reconver¬ 'value/ of some $45,000,000 offer
■f and eliminated the prohibition in sion does"snot create inflation in nrocessing advantages to manu¬
.the so-called Johnson Act against this country, but maintains sound facturers of corn, peanuts, sugar
; .participation by private investors employment and acts as a buffer cane, sweet 'potatoes, cotton and
in loans to these, countries, and it against unnecessary deflation;; The other agricultural crops such as
/ .established the Bank as an inde¬ Bank is extremely careful in co¬
pendent agency
of the United operation with other government stone to the permanent foundation
States.
agencies and, in particular the which. the
> country
requires for
rVAt the same timq the operating Department
of
Commerce,
to the- peace we all so much desire.
guide foreign purchases into chan¬
^principles
of, the Bank were
Let us go back for a moment to
.clearly stated in Section 2(b) of nels which not only avoid infla¬ the end of World War land
recall,
.the Act, which reads: "It is the tion, but prevent deflation.
if we will, President Wilson plead¬
/. policy of the Congress that the
The task of directing our loans
ing; for the Fourteen Points, the
z^Bank in the exercise of its: func- into, just the right channels will third of which provided for the
/ tions should supplement and en-,
require a high degree of states¬ elimination
of
economic
trade
^courage /and 'not -compete with manship on the part of our Gov¬ barriers. Whatever one thinks of
/ private capital, and that loans, so ernment.
For the first time, we Mr. - Wilson's over-all
..approach,
,far as possible consistently • with have a
top coordinating foreign there are few of us today who
/
,carrying out the purposes of (the Ending committee, the National would not concede that the
early
/; Bank),-/ shall
generally be for Advisory Council on International breakdown of his third
point laid
Specific purposes, and, in the judg- Monetary and Financial Problems the
groundwork of World War II.
Vii merit of the Board of Directors, set up under the Bretton Woods Have we the
courage, the stamina,
% offer reasonable assurance of re¬ Agreements Act.
This Commit-! the intelligence, and the vision to
payment."
tee consists of the Secretary of
prevent these mistakes a second
.M Since its inception in 1934/the the Treasury, as Chairman;, the time? v VI think we have.
It be¬
v
Export-Import Bank has operated Secretary of State, the Secretary hooves. everyone of us to put his
d to promote U. S. foreign trade and of Commerce, the Chairman of the shoulder to the wheel to see to it
its field of ooerations has largely Board of Governors of the Federal that economic barriers are broken
Reserve System, and the Chair-( down; that walls become
/.. ;been in the Western Hemisphere.
bridges;
•

-

own

-

for

.

.

.

'

•

<

.

-

•The

new

Act made possible loans

authorizations

in .the

last

six

J months

of 1945 equivalent • approximately to 45% of the total

authorizations made by the Bank
in

•

;

•

the

preceding

existence.

11 years of its

Nearly

$1

billion

of

/.these authorizations were to the
war
devastated areas of Europe.
.

'Failure to meet the
'

requirements
where

of these unfortunate areas,

it is apparent the need exists and
'that the countries are really en¬
deavoring to put their own houses
n\
order, would risk loss to the
'*> /./United States z of *foreign / trade




'.- vff

:

..

search

citrus, soil, crop and
improvement is being

equipment.

carried

;,V

war

and add another

it./
2
>//■»■//
//V; >/•/ 1 i:A
/ /

t

li

will be helpful.

./,-■//-•-V/.:
i

11/

;.l,. V./:,

i

.

I :

vj ••'

;•

in

on

problems.

less than

no

Re¬

hun¬

a

experimental / and
testing
laboratories throughout the State.

income, and the broad spread of
profits. • generally
r a i s ed
the
standard
of # living
throughout

New

.processing
methods
have
brought frozen,: powdered, and

,

concentrated

State, reducing debts, accu¬
mulating millions in bank and bond

citrus fruit juices,
livestock feeds from
citrus, sweet

deposits

potatoes, fish, lemon - grass and
molasses, plastics from, palmetto,

the

and surpluses.
During
1944, for instance, a reduction of
..

was

peat

noted in Florida's farm

the

No
men,

$100,000,000.

ten years

place market potentials
at an all-time .high,

in; Florida

this

in

consideration

000.

tourists

who

some

in

.

ling to
sion

struction
of

for

estimated

an

production
z

activities,

year

of 'Florida

Inventory

live

re¬

this

on

The

! I .J'

A

i'

■

high point in attendance

interest

927,000

was

set

held at The

Waldorf-Astoria,
City, Feb. 4, 5, and 6.
James
W. Allison, /President of
the Division, who is also Vice-

New York

President of the

Company,
ported

Equitable Trust

Wilmington,

that

1,500
banks; and

of

re¬

the

at

exceeded

sentatives

repre¬

trust

companies from 38 states and the
District of Columbia,

high

ous

in

Mid-Winter

1944,

at

which

istered.
v

,,

There

The previ¬

attendance
Trust

the

was

Conference

1,277

were

in

reg¬

,

t

were

also 32 representa¬

tives

of'foreign banks and gov¬
ernments from 12 countries. These
included

Australia

representative
tered
and

Bank

of

and

from

muda,

1;

India,

Canada,

Czechoslovakia,
England,

>

,i r

India

The

(a

Char¬

Australia,

China), 1; Belgium, 2; Ber¬

3;

18;

China,

1;

Denmark,

1;

1;

Italy, 1; Norway, 1;

of and Sweden, 2.
.

Del.,

registration

-V

i/i-i

by the 27th

Trust

in 1944—and conference

head,

a

.

new

was

only 6% of the land.

>

the

Conference of
the Trust Division of the Ameri¬
can
Bankers Association, which

annual

1,159,000

the

in

permanently /in / America's
yet newest * State.
'

and

and

of $336,425,000

and

at Trust Conference

—

come

the expan-;

industries,
ones

High Attendance

production runs into
astronomical figures.
Surprising
to many is the annual output of
manufactures
exceeding $300,000,000 in valuation. This is close¬
ly matched by a cash farm in¬
sources

new

Mid-Winter

Inventory of Resources

/

An.

existing
of

oldest

total

.

projects
Today, in its

future prosperity for the millions
who came to play, but decided to

excess

$150,000,000, labor for which
fully offset layoffs in war

their

opening of broad highways to

is

will

for

State.

go to work in

of

creation

2,500,-

each

.

the

v financial
institutions
are
billions of dollars ready and wil¬

of
$300,000,000-—and which is expected to
increase proportionately as hotel,
apartment and home construction
can
meet the demand,
Already
under way is a program of con¬
spend

Institutions

many

and which will require enormous

Included

finances

outside

manpower in the production/ dis¬
tribution
and
serving of goods.

the normal influx of

Financial

longer do Florida business;
farmers and growers have to

seek

Economists agree/that increased
civilian demands during the! next

new oils, ramie
canev'by-products

-

Florida's

—

at

wood,

sugar

and a greater use of non-metallic
minerals and naval stores, /v

South—was apparent in phe¬
Christmas sales
esti¬

nomenal

and

fabric,

tinuance of such general prosper¬
ity—greatest per capita income in

than
c

its

dred

War-time wages, high net farm

4

in

livestock

-

V't;

re¬

scientific

a

to

production of lum¬
ber, pulpwood and naval stores
represent a value of $55,000,000.
nan of the Board of Directors of
and
pitfalls are smoothed into Commercial fisheries, including
be Export-Import Bank of Washi¬
highways.
If we can keep this shrimp, oysters, turtles, crayfish
ngton, and has the responsibility prospect in front of us and strive and sponges, bring a gross return
•>f keeping a watch oyer our for-, for
of about $25,000,000 annually and
our
daily bread
with
the
/?ign lending programs and guid-: knowledge that what builds
provide employment for 75,000
one,
mg them in such a way that re¬
if on a sound basis, builds all, the persons.
Non-metallic
minerals
alone
payment will ultimately be pos¬ future can hold no terror for us.
produce an income over
sible. It is a challenging task. The And so I close with an
appeal to $20,000,000 a year; while Florida's
problem I present to you gentle¬ you,
gentlemen, to give us your principal seaports handle some
men, and the-'reason
I bespeak baeking in this
undertaking; to 10,000,000 tons annually in normal
vour
cooperation and assistance is criticize where you think we are years. v//< ■;'/ /,/,./■//; I;1;//(
/
that the success of the ExportLivestock, beef cattle and dairy
making mistakes; and to give us
Import Bank, as a financial me¬
herds, with a present value ex¬
the benefit of your experience and
dium serving America's
foreign
ceeding $49,000,000, plaee Florida
trade, will drive one more nail in knowledge wherever you think it first in the Southeast with more
-he coffin, of

upon

approach

-

,

depend

conserva¬

tremendous

shipbuilding, $29,978,000 for
ordnance, $7,905,000 for aircraft,
and $4,519,000 for communication

A Flexible Economy

The

countries,

their

.

sources

mated

of

braking thO re^

down pf theifigures: $686,039,000

23%

valuable tourist trade.

voliirne,

sys¬

corporate

electric

mortgage debt against a national
average that* year of 6.5%.
Con¬

•

largest

Miami and

year a total of 2,412,655,000
kilowatt hours.
/■/./•;.. //</'.

crease'iiv^p^ulation" bas'J come
/expansion of: established in¬
dustry, the creation of many new
ones, the extension and diversifi¬

three

Jacksonville,

—

sive of fresh and processed foods.

the

particularly in , the
heavy goods category .where plant
cation of agriculture, arid an un¬
capacity and skilled labor is availprecedented postwar return of its
ex-officio able and orders no longer forth¬

The Export-Import Bank Act of
.1945 transferred the management
of

the, nation.; ^long with the in-

Cities

the

>

.

two-million

Tampa—-vie

year

forward-looking business

present

Meanwhile,

for oUt-of-State markets.

Perhaps
to

its

odd, while making due allowances
for an ascending increase in its
huge tourist trade.

hour, day

every

industry
approaching

an

During the next decade Florida
easily support a population

2,000,000 of its 35,000,000

night, left Florida

category

can

in farms and groves, during
1944-45 season twenty-seven

carloads

this

feeds,
rapidly

is

double

acres

the

in

solution, in the utilization of farm
and
groVe by-products.

the

produced in such

are

appearing

which

dehy¬

soils with which America's south¬

The result of f such- favorable fac¬

the

frozen
//

Food

.

;

pronounced in the proc¬
citrous crops—canned,

profusion

,

Paradise

working conditions
its multitudinous

so

of

barely scratched, predicting the
future, utilization, of all the ele¬

recreational facilities with which

World Bank

essing

of

evolving
a
" workers'
paradise,
blending
in equable balance the best fea¬
together

even more

are

last year. Closely related to this
need is the production of livestock
and
poultry

surface of this rich field has been

cate¬

rapidly

tures of ideal

and tung oil.
Examples of
farm-factory
coordination
are

pro¬

to

all

tons

ramie

the

of

has

prepared

-

war

number

virtually

Workers'

by

With1 the creation of year-round

development and reconstruc¬

some time

gaps:

jobs,

agreements with^ tion field which rightfully belongs
France, Belgium and the Nether-the World Bank/now in process
lands will be carried out by lend-: of organization.1 It will require
to

workers

A

lend-lease

lease funds

expansion

an

gories.

intention

of the Bank to enter into the longterm

shipyards and

increasing

an

skilled

emergency

the

and

force.

instituted

vocational school system,

■/

made

needs

labor

programs

Florida's huge

a

are

native-born

>

Training

made

by the Bank
on
a
businesslike basis
thorough study of the abil¬
ity to repay. Reconstruction loans
except

ii ated and
jmeeting this situation in^his LendLease Message to Congress, June
4, 1945, when he stated: "Our reted

loan

after

'

of

ican

prog¬

These areas
legitimate markets for Ameri¬
goods: but it is clear that pri¬

.capital sis not yet organized
to handle their needs., If they do
not receive help from us, not only
Will world recovery; be retarded,
but we cannot blame them if they,
seek their needs.elsewhere.

£;S and,

aware

our

and prosperity.

vate

capacity

their productive

storing

can

beef animals
Raising
;and processing animals and ani¬
mal products,
still represents a
local need, a deficit
of 240,000

"Florida—A United State"

Export-Import Bank
•'

995

i

;.

li.

•

THE COMMERCIAL & FINANCIAL

996

(Continued from page 972)f
the costs of finding new

war

States

United

the

in

serves

re¬

will

almost certainly be higher;',"\ \

creased

Outlook

Thursday, February 21, 1946

was

facilities

,

' -y\f

."Jti

,1

"V.

'i1'^

"<? >'' '/'*

'f./

"V' j

'"'i. "'"''"V

Foreign Oil

Production
factor of reai signifi¬

icant

consumption in¬

anticipated after' the end of

•

/ in

this

connection

portant

development of

fuel

motor

capacity for producing aviation
gasoline. Tt is'expected that some
porting* daily-over *300,000".and
"of
these
will-be
continued
in
200,000' "barrels,:* respectively, of
crude oil and petroleum products. operation through sale, rent or

';

\-M

start in the

a

outlets

new

may

until

have been made by its recent ac/■;:;/:It is not to be expected that the

resumed

icantly. Prior .to, the war, motor
consumption's
long-term
annual

i

•

fuel

trend

that

so

increase Signif¬

be

can

the #oad

on

cars

;

'

of supplies in the

sources

Middle East

cannot, be expected
upward trend in-use of

the

that

Standard Oil of Galifornia has im-

^/greater *exte nt than

that

„

.

*, >

>

to

rationing,,

accounted L for
about 16% of total United States

owned

stretching from the/south¬
western oil fields to the eastern
seaboard J and capable of trans¬

Lines

,1.

CHRONICLE
domestic gasoline

Oil Industry

■

industry

increase

it

-v

operate as profitably
during the war period.

can

did

'
made of lease by ."the RFC."
of 4
Refining and marketing have long v.V;
Government-owned fa¬ //•Regardless of what disposition
The situation in fuel oil, the in¬ been the least profitable branches
is made of these facilities, the in¬
praisal is the considerable vexr cilities is currently* a'question of dustry is
presently
confronted dustry's second, major product, of the industry and it may well
pansion of foreign $ crude
oil considerable import to the indus¬ with a surplus of reiining capacity presents a different picture, but be that, for a limited period :of >•• .•••■try which operates on a delicate
production and refining capacity
at
also
contains "■ complexing
prob¬ time
least, ' the.; condition
balance;:between /production, re- relative to anticipated near-term
during the. war years> in the
requirements." The indicated de¬ lems. After V-J Day fuel oil users brought about by the war may ag
Middle" East, for example, crude fining and marketing. ", In the face
r :*
came
back with a gravate this problem;*:
mand for gasoline at the present apparently
oil production is now at a rate of the enlarged tanker fleet and
time is at a rate of approximately vengeance born of, the frustrations
The Chemical Branch of Oil 'L*
close to 650,000 barrels a day with the distinct advantage of flexibility
A second

requires

that

cance

careful

ap¬

disposition is to be

What

was

an

as

-

these two

,/

,

'

1,600,000 barrels a day and refin¬

this: production.

This

r

settlement

Final

annually prior, to the war..

This is

noteworthy

a

that

fact

during the recent war more than
one-halfr of all militaryV supplies

•

portant readjustment in view of niques and processes. This was a
diminished demand for mili¬ direct outgrowth of the need for
tary purposes.
Middle East oil high quality aviation fuels as is
may
eventually be a threat i to indicated in the following table:
Caribbean ■>. oil; 1 ' But
for
the
United States, oil in this area rep¬ Aviation Gasoline—Daily Average
the

Production—1,009 bbls.

for

oils,

Venezuelan

40

1941.

58

ex¬

128

1942.
1943.

291

.—

vehicles

now

are

some

than in 1941 and are not
to

medium

for

suitable

the United States is higher than
that of gasoline and since there
is a strong seasonal demand for

;

the

imports

latter,

American crudes

are

of * South
of great im¬

portance to the domestic industry
because they provide a means of
balancing supplies of crude with
demand of the various oil prod¬

,

V-*

Vl

-

y

■'!

»/"<".

v

"

.

1" ,'

Index

Stocks

/

Prod.

62.1

1945—

1944™— 64.0

:

1939——
*B.

L.

55.9

S.

Yr. End

1,700
1,660

1,350

225
220
-

J 1,270

Wholesale

i
r

249,

246
257
276
-

Price

Per*

./NOTE—1945 figures based on

•

Bbl.

$1.11
1.11

mestic ;;;

also

enables

industry •> to

our

process

do¬

a

Enlargement

of

0.96

?

/thermal

cracking capacity has remained at
the 2 million barrels a day level.
The: significance of this change
lies

in

of

refining

dustry is
a

facilities

about 51.5

of

addition

to

of

heavy

stocks

oil

as

in

the, catalytic

In

process.
now

fuel

effect the in¬

able to squeeze out

is

slowing down

a

refinery products,

kerosene prices were in¬
creased by one-half cent a gallon
and three-tenths of a cent a gallon
on fuel oil.
The industry is asking
a further increase in the prices of
ings

on

these

two

yields

on

kerosene

$835

some

After pearl
million was

spent in this country on facilities
producing high quality avia¬

tion

fuels.

Of

this

amount

ap¬

proximately
$600
million
was
spent by oil companies themselves
in

the

tions
■i*

_

-i

«*

were

—

.......

;a

if:

i* m

the Big and Little Inch

'»

n

»«

r«

their

own

establishments

on

a

can

13.3

530

105

1.35

78

12.7-500

116

1.35

470 414

1,04

77lt Jp ;

,

to

'

;of

establishment

of

state

production
and

In view of the

of

of

lower

fuel

oil

products
:limit.

ter

seasonal

demand, a cut in
gasoline production seems inevit¬
able. More competition also is in
prospect, if not already at hand.

$235

quality motor fuel. Government- of 0.3 cents a gallon in the tank
r.

is;

w,

r.

j

■

.•

1

..

:

^ u m

of

|
V

ihese

virtuallyr without

W ;/>^06^1

J///;;//g/lp:

*X}Vsample .group of ten repre-^.
Sbntative companies in the iiidus*
•try listed in Table II shows the
progressive improvement that has >
resulted in the past four yearsi;:
Though 1945 data are as yet in¬
complete, the figures for the four
years 1941-44 provide an interest-;
ing comparison with the results
of the four years 1936-39. Net in¬
come of the ten
companies im-»
proved by 21%. Working capital
increased by 28% and debt -de*; ::;•;
Clined by 5%. During the latter,

ap

*

,

total; assets have not
outlets only increased materially, but°ex^

retail

will

competition

years

and reha^

tensive modernization

bilitation has taken place, Com-..
mon stocks
and surplus on the
books of the ten companies

value of 12 %

had a
higher at the end
of 1944* compared to the year-end
1941. Of considerable interest to

involved

cost

such

over

aggregate market value of all the
common stocks of these companies

in

75% higher at the end of

values.

at

74%

can

meet

competition from units long estab¬
lished and better situated

in

performed

suffered

from

Jones

lack of

never

competition.

as

well

as

as

TABLE II

.

.

,

Ten/Leading Oil Companies
(million $)
* J
.

'Z/'i;/
/

Net Income

1936-

Gulf

Avge.

Work.

1941-

;

Capital

year

end

1941

1944

1941

1944

$17.6

$30.1

$8.7

$1.4

21.6

32.0

80.9

101.6

46.1

48 4

«

36.7

42.7

45.8

Phillips Petrol.—

15.2

16.4

30.0

Vacuum-

43.5

43.0

216.9

27.8

35.0;

41.2

49.6

J.—. 102.7.,.125.1,.,506.3

Oil

Sotony

Dow- 4

82.3

<

>"

* ■. •;

'.

'

32.7

28Q.5

125.0

103.8

122.6

40.0

185.9

181.9

13.5

697.1

293.1

1941

•

1944

-

1941

1945
$183

$105.2

$126.9

$103

431.4

474.4

299

552

328.7

396.5

504

895

181,2

222.5

187

280

626.5

701.0

234

530

40.0

5564

583.9

248

* 617

12.0 i

47.6

30.7

:

■''
>

•'•/.*• !*",::"Mkt. Valua
/.::;/i;.-V::/.;>S Common Stock of Common
Debt
and Surplus ;/v> Shares
year end :
year end
year end

1944

$8.8

Oil

Humble

■

$14.1

1939

Oil-

the

which i$ contrary

average,

It is signify to the general belief that oils have

Financial Data

4 year

group

a

stocks have

these ten oil company

the

mar-;

have

Thus,

higher.

East 'Coast-markets-' Those

kets

average

companies closed
111 in 1941 and 193 in 1945, or /

ately raised

to how it

Dow-Jones

The

.

of 30 industrial

distance, the question is immedi¬
as

701.6

792.0

395

615

/

42.7

:

.

47.9'

114.2

Standard Oil of
Calif.

—

SU ndard Oil of

-

Ind.

•

,

i;'

Standard Oil of

N

Standard Oil of

Company-

Totals

239.8

3.2

5.2

17.6

24.2

♦21,4

♦42.3

37.2

*

46.1

148.8

176.6

111.7

112.9

409.2 1,353.6 1,727.6
+21
+28

739.8

337.^

:

change—
♦Includes preferred

,

.1,318.3 1,444.7 1,150 1,830

{'■'.•

!

:.r.'

—-1—1

Ohio
Texas

stock.

.

>

1945
compared to their 1941 year-end

was

long

a

the fact that the

the investor is

the West Coast by tanker. In view

The balance of Weakening of, the gasolene price

million

,

is, \*1

The;
chemical;

a

"

Recently Standard Oil
California, which j heretofore

Continental

gasoline

'

are

,

expanded;:

of

valued

stocks, the ^limited
storage capacity and the low win¬
■:

list

reappear.

increased.

rapid accumulation

'
.

as

or

and: the

lets for/ and application

shut down during the war, there
is a.; stronglikelihood that the
normal

s,

of raw material.- The outr

source

gravity.

Taxes now, amount

be reduced at the refinery

J outlays

%3 u 'a u m t: v




86

products in order that
the higher valued gaso¬

were
government structure has already been in evi¬
representing 29 installa¬ dence in the Middle West. In the
expansion
in
pipe
line. tions whose
principal .peacetime middle of January Standard Oil
Facilities. The most notable addi-J use is the production of high i of Indiana announced a reduction

parity there has been an impor-

1.61

effectively of the added
prevented the normal adjustments transportation

and

heretofore.

in marine transport, ca- t permanent basis.

tant

83

incomplete data for the full year..

million barrels. The

various

the

line

for

only larger, but more modern and
much speedier.
One-half of the
fleet
is
owned
by the Federal
In

1.65

540.

cities, excluding taxes.

that ;

greater volume of higher qual¬

Harbor

than the t'abker
fleet in September, 1939.
It is hot

Government.

67

14.5

however, have thus far

each barrel of crude than has been

four times greater

.increase

.14.6

tMid-Continent : 33 ,deg.

* , *
made

business using petroleum as a rich

65

607

others

oil business is in truth

1.68

71

>630

functions'

constantly

being

$1.73

.

70

700

*

useful

;.

many

industry in regard to sales of mo¬
inven¬ tor fuel, which i& the. highest
tories of gasoline on the Gulf and value and by far the largest vol¬
East Coasts, the nation's largest ume
product, is one of severe
consuming areas, amounted to 49 competition. With large refining
million barrels.
Storage capacity capacity mounting stocks and re* four

possible

tonnage this fleet * is

In

14.6

~

are

Per

and newer cars on the road.

more

ity, higher valued products out of

carrying oil and its products.
On
Sept;
1,
1945, the 'United
States tanker fleet comprised.1$07
-vessels.'

and

charging

development

transportation

fact

economy

tillates

for

•

the

operations is
obtained through the use of dis¬

arising by virtue" of the require¬
ments of war is the huge enlarge¬
ment

65

1926=100

refining operations in order to
curtail gasoline production at the
comparatively high yields now
prevailing. But this would also
reduce the badly needed supplies
of fuel oil. Normally the situation

time. I'' Meanwhile

ent

Transportation

third " major

87

72 -14.60, 725

v

.

.

starting / points for many others'
are ammonia, nitric acid, toluene,
acetone, refrigerants, alcohol, car¬
bon black and propylene.;; There

Price

Stocks

for other new products.
\ Examples of chemicals

serving

Yr. End Bbl.

Prod.

;

intermediate^

as

from petroleum refining that are

development in re*
has confined its retail operations
fining has been the growth of
west of the Rocky Mountains, an¬
Catalytic cracking;' In the past^five
years such cracking capacity has would correct itself by price ad¬ nounced the inauguration of mo¬
increased - from
approximately justments which would induce tor fuel sales to distributors in
100,000 barrels a day to close to producers to step up production of five major East Coast States. This
1,000,000 barrels daily at the pres¬ thh scarce items. Ceilings on prices product is to be transported from

Facilities
A

million bbls.

{Retail

-

useful in them-.

or * serve

.

country totalled close to 100 mil¬ .Wagon price. This announcement
lion barrels compared to 80 mil¬ was followed by similar action by
*
lion barrels in the first week of other units in the area.
: The normal situation in the oil
January, 1941, when there were

obvious remedy

The major

Great

>

'

Avge.

••>. Stocks Price
Prod. Yr. End (gal.)

790
740
1.11
614
1.11
607
1.06 * 690
0.96 615

Index

{Average price per gallon in 50
proximately six cents per gallon.

million bb!s.

t Price

./ million bbls.

Petr.

'

,

are either

selves

-Fuel Oli-

-Gasoline-

'

compounds
by
new
resulting in many thousands of new and useful products.

TABLE I
-Crude 011-

♦Price

that otherwise take place swiftly.
catalytic The tight situation in both kero¬
larger part of its crude oil into cracking makes possible increased sene and fuel oil was made the
the higher; valued refined prod¬ yields of motor fuel and- lighter subject of official recognition in
petroleum products Sat lower costs. the middle of last December. Ceil¬
ucts.
>
'
;* -V,
•'

This

ucts.

countless

processes

The average its demand. And excess gasoline
age of cars on the road is now
is the bane of the oil industry.
materially above normal, hence
In the early part of January this
they cannot be used as much as
newer
vehicles.
Thus, although year gasoline inventories in the

is

:;:to November 1.
,

1

•

industry engaged in separating

an

expected refinery in the crude refining
These
for process is excessive in relation to

of

light

and

Since the long-term
trend of fuel oil consumption in

:;

hydrocar-

The art of petroleum chemistry is

industry to sup¬

possibly 12 months.

484'

oils.

fuel

a- vast store-

of

yarious: temperature ranges in the

that year's level

approach

537;:

;

1944.

long recognized as very
valuable sources of refinery stock
have beep

,

'V

method of obtaining the most de-V'U
sired products is ;to boil off at'

On January 7 of this year

:

1940.

ample, ideally supplement United
States
production in that they

oil.

7

considerable

,bon compounds. The conventional

ply all of the fuel oil demands,
10% lower the gasoline that comes out of the

1,500.

important
strategic
asset from the standpoint of loca¬
tion and also nature of the crude

house of thousands

the fact that

from

stems

order for the

in

products is their use in motor cars
and trucks. Registrations of these

1,390
1,400

an

Petroleum is

years.

are

Fuel Oil and Gasoline Rela-

t-;The major outlet for -petroleum: rently,

1943—U 59.8

ing branch of the oil industry* was
as close to the northeastern mar¬
expanded to a very considerable
kets of the United-States as is oil
degree.
There was not only an
on
the Gulf Coast.
Activity in expansion in capacity, but a ver¬
Venezuela must also undergo im¬ itable revolution in refinery tech¬

resents

:

,

shipped < overseas
consisted of 1942—L—. 56.9
products: of petroleum. Because 1941..—— 50.0
of these requirements, the refin¬
1940—— 52.1

.

underwent

•

; tionships
•, •/
refinery the - different products /
the;year^ .i938 and 1942
They problem created by fuel such as gasoline, kerosene, heating '§0
tp/' the extent .of; bnly - abbut; %%
in each: Of Ih'ose^years.x;-A
j oil, probably an extreme one cur* oils, lubricating ails-and fuel oils.

Prod.

is

'installations

>-•'*>

expansion during the war and is
certain to grow in the post-war

estimated ,/.to .- number/..

demand in

economic factors.
It

oil1 heating

ent

greater de¬

a

depression in the early .i930'§ the
industry experienced a decline in

what disposition will be made of
it disit.
The them appears to rest at the pres¬
Anglo-American Oil Agreement ent time, like a number of other
now being: readied ior
hearings important questions, on other than

Committee may
*set the pattern for the immediate
future if and when ratified.
In Venezuela crude production
reached, a daily peak rate of X
000,000 barrels last year, almost
double the rate in 1939.
The
large source of low* cost crude is

.long-term

;a'.>

*Industry-;-

dustry

Pres¬

the

;'r

The chemical branch bf the in¬

increase, probably

trend
of 5%

operates* would make
tinctly unfavorable to

before: a Senate

use

level

1941

-

to

as

Fuel oil

the

2,400,000
cline than has ever been experi¬ units. This is expected to double
* •- \
'
enced by the-industry. Since the, In -the * next'. five years."

It con¬ portation tax on gross revenues
stitutes a / potent:*factor ' iri the together with ad valorem taxes in
States through which it passes.
post-war' world : oil picture, ; for
the indications are that it may be, Although it is difficult to chal¬
the leading position of
if it is not already, the cheapest lenge
oil to be found anywhere. A com¬ tankers as the cheapest medium
oil
transportation, /the, wai
bination of circumstances could of
.conceivably result in Middle East emergency pipe lines are a factor
of consideration in the outlook
oil setting the world price which,
considering the conditions under for the industry in the next 12
months.

the

on

which averaged an increase

below 1945.

hardly be ignored.

industry

well above

now

exceeding

current problem for the
It js expected that the
demand for the major oil prod¬
ucts in 1946 will be about 10%

'

which the United States

rationing.

■■

is

portant

.

-can

and is

industry.

•

.

created by

ing capacity far exceeds this fig¬
ure.
Hence there is posed an im¬

equal to which tankers possess, it is ques¬
is--; two*, tionable whether; these two pipe
thirds higher than- in 1939 and lines can perform an economical
capacity is still on the increase. peacetime function in transporta¬
The
For the United States industry the tion of oil or oil products.
significance of this, situation* is feasibility..,: of. such /operations
fchat almost all of the Middle East under private hands would, at
-production is available for export. appears, depend on the cost price
to prospective operators, length of
C While it is true that consumption
time
in
which
they could -be
>. of
petroleum products on a per
amortized and whether: they could
capita basis outside the. United
be operated at capacity. / Under
States is: comparatively low . and
lhereforea larger, potential mar¬ private;ibwnership,^
ket exists; this :largeJ new. source ported through these lines is suhjof: supply >strategically located ject to the .4Vfe% Federal trans¬
refining capacity; about

"•"

701.9
—5

'■

49.9,
494.7

61.6

25

63

574.1

435

684

4',793.9 5,379.6 3,580 6,251
' +12 •'
+73

;
>

Volume 163

A

-Number 4466

THE COMMERCIAL & FINANCIAL CHRONICLE

Clearing House to

Hotel

Industry Heads Cite Post-War Dangers

Delect Unethical
Stock Transactions

•>

||

this. State
one

for

one

tion

being to defraud the unsus¬
pecting investors of their hard

And I do not believe that this
sit¬
uation was limited to the State
of
South Carolina.

through

medium

in

1932

their;; dealings
a large ex¬
un¬

just

much

as

purchase

hotels

the various Securities Admin¬
istrators. In my own personal ex¬

ing

perience,

selling for

are

borne

the assistance rendered

out

me

dlers who had
of

come

South Carolina

citizens

of

this

lar."

during

and

amounts of securities.

few cents

VCy

The

hotel project

new

Public
.'Vv

Black

this

lease

people of

those

securities

issues

and

who handle them.

men

Delaware

Iowa

Lawrence

of

tions

founded

ments

Missouri
New

Newport Electric
Public

Service

Rockland

San

Light

&

5.2

1.40

5.4

1.71

®:ai.ia^
2.60
2.50

1.05
:

18

Pacific

•

41

-;-V 1.10

1941-44

aver¬

earnings of the ten oil

panies listed in Table II

Electric

Public

United
West

Western

ing v capitalized

at

| ratio

a

Electric

■^/■ Averages

:

fact

which

vestor

the

conservative

in¬

might, in the absence of in¬

flation fever, regard as quite ade¬

quate.
/

"

•

,

I'-

.The outlook for the

pends to
On

its

a

which

price
of

balance will
how

over

as

always,

ability to bring supply in

strument

or

industry de¬

the

The extent

becomes

bringing
determine

the

in¬

about

this

how

well

ba<jl,y the industry fares
coming months.

As

to

position of the oil industry.




:

'W-s&m

2.06

•

■

Oxford

opinion applied to
<

,

,

>

.50

4.5

.56

.80

4,5'

'

1.40
1.30

as

or

It is based

new.

on common
law, the Securities Act and the Commission rules."

5.0

33
3.9

1.20

;

10.9

1.09

12.0;
19.0

24.3 :

.

1.25

v. #

v.

of the securities

2.86

>

''mm*1'

PA/*:

..

only opinions;

helpful to their mem¬
obviously frustrated when in the final analysis
they are obliged, as the quotation makes clear* to leave their
membership as much up in the air as ever before.
are

Dealers want something authentic.

'13.0

They want, it

now.,

19.4

.98

' 4.5 %

are

are

All the efforts of the NSTA to be

bers

They
•

are

disturbed because if the Oxford

case

in its dicta-

17.6

has
^

\

the customs and usages

Have these

21.7

'

| J*"6

wti 'J-'

17.6 1

1.90

'•-'r;-4.5 '•

.68

20.0
:

.2.14.

.

\ ' 4.5'

1.65

19

'9.9:

/:■

1.59

i

1.20
2.00

,

about

not based on legal advice, and in the final
analysis each firm must be responsible for its own busi¬
ness practices arid
procedures."

•/19.7 '

•90

;

•

37

•:

•

Supreme Court in the case of Bruce's Juices vs. the
American Can Co. leaves independent canners and producers in a
in¬

an

something

gressions which

in Tampa, Fla.prefused to pay notes held by the
Co., claiming it^>
still
had been discriminated against in businessmen =„ are
awaiting
.
-J-mm
can
prices.
The Bruce concern clarication, are:
Can

men

who do not

were never

intended

as

violations.

'

;

It

can

and should

come

out with a clear states

If it is the intention of the Commission to create

some

departure from existing trade customs and usages insofar
these affect dealers and brokers, the

issue

canner

then honest

new,

ultimately find themselves guilty of trans¬

The fault continues to be that of the SEC. It holds the

as

important parts of the Robinson-Patman Act.
which Bruce's Juices, Inc.,

added

understand may

trump card.

States

The action involved a suit in

I-

-

"Please bear in mind that these

.18.6
'

4.3 ;-I :K;v'r2.76";''

:•

27

/i

IV V- ^y
"The essential
thing is to make a clear distinction
whether
you are property acting as "Principal'

they

;i5.i ?

/

1.62

.

dependent

the

In sending out its
analysis in the February communir
cation, the NSTA said in part:
;
• ■
<

16.8'

1.92

—

over some

membership

any part in the picture? If the Oxford*
decision does not create or attempt to create something new*,

16.7

2.14

7.5

13

Companies—

to
'

Independents! Rights Uncertain.

quandary

believe that

1 |/Agent.This is nothing

Last week's abortive tie-vote "no decision" handed down by the

United

the

^

|||||Again,

14.9 1

■

4.81

.

,

3.9

52

a

rule upon

This is

the subject.

silence, is brass.;*1 %UU
so

long

as

Commission shouM
one

commission

the

instance/where

WMi
continues

to

.•

that while its purchases
the American Can

charged
of

from

cans

plant in Tampa, Fla., were as large
the

as

Tampa

units|of

several

large "chain" companies, the large
plants

were

nied to the

The

case

given

a

discount de¬

independent operators.
was

fought

through

finally reached the Supreme Court,

to the favorable

"

i

11.2

1.28

5.0

;
-

2.8

36

is

as

5.3

:

1.00

28

Power.

,

2.06

1.20

30

the

question

18.0
22.3

21.2

•

.

Four-Four Decision in American Can Case Leaves

•.

of

out

15.6

2.33

4.4

1.40

m is
;

-

nature

why all this agitation;, and why doesn't the Commission some
flatly and make its position clear?
•
" < ;

25.0

*

4.84

11

•

long-term trends of demand; there
no

■

16.2

2.28

,

16

—

••'•'".•v *"r

inherent

"

36

Service—

American

,

large degree,

balance with demand.
to

1

19.5

21.7 i
•

.72

4.4
.

1.60

»

to

only to believe?

How

12.3

1

'4.00

36

-

—

-Pt

case

industry?

Supreme Court Fails to
Clarify Robinson-Patman Act

of
a

,f;

1.73

4.9

1

1.00

80

'•

V

Service————

Massachusetts

the

to

that's true, particularly so upon a careful
However, what is the individual dealer who has

made

that

.

19.3

1.36

5.3

1.00

Powell-——

be¬

slightly better than 15 times

;

2.98

2.2

2.15

,

23

Illuminating

Penn

Wisconsin

com-^

were

24.5

^.44
'

4.1

■

*

2.30

•v

age

.40

4.5

mi 4.7,
r\' 4.8

.5.0&

Power-t-l————-—

v.

tions the four-year

•

,

27

City Gas & .Electric--—-

•

note

19.1

-r

1.40

:

52

Diego Gas ••■&■ .Electric^i^--.--^-,*-^

Due

24.0

19

Power——

been

20.0

•.

Light--—_

Indiana

decision.

a sense

analysis.

13.6
13.6

wr

'

2.46

5

1.20

———i.-.--

of

Southwestern

the investors realizing the profits

lagged." It is of interest to

v.

:

2.71

.

•

2.86

Power & Light-————.

Southwestern

invest¬

that at their 1945 year-end valua¬

.1.69

^

5.1;

2.33

102

—L—■

;

,15.6'.

4.0

—L

Electric

.

"AU concerns dealing in securities, unless
they are
100% brokers, could be affected by the provisions outlined in the Oxford case."
•
'
*

13.7 *

■

1.86-

3.9

"

&

"

told||I! 11,I?::I;

c

4.2

————

Gas

Puget Sound

corpora¬

rightfully deserve.

20.5

1.00

concerned

which they

4.7

20.8 i

,

2.10

2.25

Electric——

Utilities

Bedford

ear.

being made to clarify.

are

was
particularly sincere in its attempt to
order out of the chaos which has resulted from

Oxford

13.7

2.70

22

Light Co.-

New? Orleans Public Service

sound proposition for all
and will culminate in

a

22.8;

'

grateful; I

these

on

&

;v;i3.7-:

.95

mm.

2.40

,

53"

Lynn- Gas & Electric——
Michigan Public Service.;-.————e—

combined efforts

making the

Gas

Electric

Lowell

We

sides, efforts

some

llfjlln

11.1

.

2.274: ::
;

2.00

58

Public Service-———rSuperior District Power
L

Lake

understanding.

controversy it failed without fault.

Price-,

24

Electric^--—
Pall River Electric Lights
Fitchburg Gas & Electric—
Holyoke Water Power Co.—

Sierra

our

the

in

56

Light—

Empire District

Sioux

that

bring

Average

.70

—

&

common

The NSTA

lend-

when

1.90 :r

4.7

1.08

-

47

•

Power-—^—

Power

.

;;■?

4:3

^

.79

-

<

37

:
•

^4.:

s

1.30

23

•

Service--^-^—.

Public Service^,—,

Power

C

.29

27

which

am sure

and

1.24

5.1'
4.6

2-00:

13 v'

.

AGas~_

Co.-^-^-.—

it, these definitions added nothing to what

see

already

■The National Association of Securities Dealers and the
National Securities Traders Association have tried.

2.41

3.5
:

2.00

21

operation of the various securities
organizations and ' those people
handling securities,, of which we
are
all * keenly
aware
and for

will go far in

47"-

43

&

superrogation, and purely declaratory.

we

On all

.

1942,

$1.71

the

merely

•

Derby Gas & Electric-^-—

great task imposed upon us in
protecting the citizens of our re¬
spective States, but, with the co-

deeply

.60

1.20

w_..

Electric

to be

11 Those gymnastics have set the industry by the

.'Av:

4.8%

2.80

defined* that

seem

was the
general view in the securi¬
industry until the Commission undertook, through the
medium of the Oxford
case, to engage in oral gymnastics.

Earn.
Share
Earnings ? Ratios

.

About

$0.90

17

well

so

In this month's NSTA communication the

Yield

; Rate

55

^

Electric

Connecticut

a

are

Dividend

-3 26

:

distinctions

broker have become

a

ties

1929, he said.

—

Ligh t—„—J._

Connecticut Light &

of the National Association have

we

until

rates are still lower than

room

^

Illinois

Commuhity

proper regulation of the registra¬

tion; of

&;

Central Vermont Public

Country in

our

Power

Power

Edison

Concord

who, during the next few
years, will be in position to render
a great service to the
industry and
the

defense

programs

the country was at war.

About

.

Edison

Central

trator

to

■;'■

"

.

law upon trade customs and:
between acting as a dealer anil

common

We believe that this

Utility Securities

Central Arizona Light & Power

Adminis¬

-

Hills

Boston

plan,
the

upon

Securities

every

was

emphasized that honot feel the stimulus of

national

19'

Brockton

whole-hearted cooperation of each
and

■•

:.■

Arkansas-Missouri

regarding

of

depends

course,

As

The banker

did

as

work of

a

2% for inter¬

earn even

Over-Counter (and Out-of-Town Exchanges):

this

success

in

f

'

est on their estimated valuation."

Arizona

ing public of these great United
The

•; %,

!

is handled
efficient manner, it will go

States.

invested

was

•

average

(Continued from page 964)

far towards protecting the invest¬

•"of

did hotels

Beverly Gas & Electric

of releasing information
an

hotels.

an

is

| The National Association of Se¬
curities Administrators has under
advisement at this time a means

in

$130,000,000

Price

if

through '30

reorganization and fore¬
closure,
Hqtel recovery was slug¬
gish, as evidenced by the fact that
in none of the years up to 1942

should be

the

upon

the

usages,

on

large

,

and

return

ruptcy,

in

justice.

violations

6%

.

Based

Without the

help of the honest stock salesmen,
it would have been a
long drawn
out affair and quite
expensive to
this State to
bring these men to

,

and

tion's hotels— new, old, large, me¬
dium and small—went into bank¬

reliance be put on risk capi¬
on borrowd money.

more

lesson

"The result," said Mr. Kleeman.
"was that by 1932, 81% of the na¬

;|

V;

.

.

definitions in the Securities Act of 1934

tels
the dol-' the

on

their

hotels showed

new

through

$700,000

■:

acting

of

con-!

tal. less

defrauded
of

about

Bankers'

from 1927

•!

Mr. Herndon recommended that

into the State

State

1929

"any

for his

their investment, yet in each year

v

funds

and

of the
as

engaged in the business of buying and selling securi¬
own
account, through a broker or otherwise*
but does not include a
bank, or any person insofar as he
buys or sells securities for his own account, either indi¬
vidually or in some fiduciary capacity, but not as a part of
a
regular business."
ties

ing until the project was thor¬
oughly studied, Mr. Kleeman re¬
ported that by 1928 comparatively

ai?^ ky. '30 the bonds were.
a

Reports

Attitude

learned

had

on

lost

year;

v

by

the above mentioned years in the
apprehension of numerous swin¬

i

from

raised

was

the

land

.

next subdivision of the same section to which the
Commis¬

-

would not enter into hotel financ¬

:

:

•

;In that subdivision, which is Section 3(a)(5)
Securities Act of 1934, the term "dealer" is defined

parcel of real

a

Stating that banks and bankers

■

Herndon. ;"It cost $28,000,000 to
build. Completed in 19g7, it showed
a million dollar deficit the follow¬

interested

curbingthe activity of the
"high-binder" and "swindler" as

was

Kleeman

i.;V,

purchased the Stevens Hotel, Chi¬
cago
for $7,500,000,"
said
Mr.

in

this1;

business not

a

•

sion referred for the definition of the term broker.

•

-

Guide

a

(Continued from page 959)

•

person

.

sincerely be¬

are

happened."

Mr.

estate.

mortgages, ac¬
cording to Mr. Herndon, who man-,
ages the Hotel Plaza in New York
City, "Recently,
Hilton
Hotels

lieve that the ethical stock sales¬
men

to

struct

with investors will to

tent curb this unwanted and
desirable practice. I

as

judgment

Three-quartersy of
used

*

;

40

said

;

"Without

snap

Risk Capital, Advises
:
Herndon

on

of

central
organization, can ex¬
change information regularly con¬
cerning the activities of that small
; minority of stock salesmen who

unethical

added:

ten,

or

to

pointed out that;; a new
hotel project should be evaluated

few

Rely

some

are

He

and the worst

the various

the

five

30

of

terms

He

might decree that the hotel indus¬
try faces a bright future. It faced
equally as rosy a future after the
last war, but without finding the
facts, people invested their money

earned savings which had
been
invested for their future
security.

states,

about.

thefull L facts,

pur¬

pose

|-v A system whereby

in

not

years,

industry in the war
years operated at a fair profit for
the first time since the '20's, Mr.
Frawley emphasized that it took
world conflict to bring the condi¬

purpose

only—that

purpose

Frawley

■

appraised

billion hotel

1939, 1940, and

into

v.-|\

|
11

Reporting that the country's $5 Andrews.;

(Continued from page 971)
1941, this De¬
partment y was
confronted
with
various schemes offered
by un¬
ethical stock salesmen who came
:

and

in Search of

(Continued from page 966)
; Industry Now Profitable, Says

of

99?

The

lower

two

courts

of

Florida

points regarding

and

which

1.

Is

.proved

Robinson

against
;;

-

violation

Patman

Act

of

the

defense

maintain

such silence,

it fails to serve the

-

Public interest.

^

judicial judgment? and
2. Should discounts be based on
a

aggregate purchases

or on

the size

of purchases from any one manu¬

facturing unit?
Thq

'

.

.

Moore,

four-four .decision,,- made
by Justice Jackson's ab¬

possible
sence

in

Germany, has left these
points undetermined, but it is ex¬

pected

that

the

case

will

heard before the tribunal.

be
,•

.;

re¬
„

Lobe & Moore Reopens |
SEATTLE,

;

...

Inc.,

vestment

WASH. — Lobe &
is resuming the in¬

business from offices at

Colvin, Mendenhall & Co.
BEVERLY
Donald

L.

HILLS,

Colvin

CALIF.

has

--

admitted

Ernest D. Mendenhall. Jr., to Dart—

are

newship in Donald L. Colvin Com¬

Lobe, President; Gerald. E.
Moore, Secretary and Treasurer;
and Morton H. Van Nuys, Vice-

and the firm name has been
changed to Colvin, Mendenhall &
Co.
Mr. Mendenhall was formerly

President.-

with

702 V2 Third Avenue.

Officers

Albert

l. -;

:

.

pany

Blyth & Co.

>■

;■^•.":/■■;^^v;^

^OMlVrEReiAI.' & ^FINANOIA'1. .CHROMieW©

998

the

the

and

Senate

House ; and

be4
lieye will be signed by the Presiwhich -I have every reason to

■

(Continued from page 959)
Most of us in our buying and
selling, howeyer, focus our atten¬
tion chiefly on the sales end
on selling our labor or our mer¬
chandise as well as possible. This
means
that
farmers
push for
higher prices, businessmen (for

capacity to produce, then it must
be
something wrong with our
ability to (market the potential
output. ' I, '<•£■
'' j

So if the desirable level of pro¬

duction is not limited by human
need—at least for a long time yet

what

—then

ductive

limit the pro¬
resources in this

does
of

use

duction

that, outruns

the

is

is

makes

what

Bowles today the

Chester

,

;,t«,

,

..

The special interest groups and
the speculative wolves are hot on
Chester

Bowles'

trail.

He

needs

help.Otherwise we
shall I go
through the disaster of 1919 and
1921

all

over again.
The danger
repeating 1919 is so great
all producers' groups—like

of 1946

that

farmers—should back up the OPA
to the limit for one more year. To
do

is the best and cheapest in¬
I know against deflation¬

so

surance

disaster.

ary

If we

can

1

>

;

get through 1946 and
without in¬

the first half of 1947

flation,

ought to be safe for a
Productive power should

we

while.
then

catch

up and begin to out¬
consumptive power and after
time we shall again have to

run

<(•'; a

think

much

as

about

protecting

the producer as the consumer.

So much for the present situa¬

..'

,

have in
for a

get acrimonious arguments about
the terms and the

human

resources,

Above

all,

make the most of

we

and

how

can

the almost

our people
participate and to produce?
Perhaps the first question is, how

:

Some

•

people
seem
to
is a danger of too

there

production.
for

Let

us examine this
Is there really any

moment.

a

much

over

in

the

country,

ter, somewhere in the world?
the

course

self.

answers

Of

it¬

People who know, who have

observed

ing
of

question

to
our

with

the

actual

which

so

families

wartime

level

many

are

of

bound—even

incomes—will

re¬

ject immediately the idea that we
are
in any danger of producing

/

*

than

it

would

be

socially
desirable to have and to fen joy.
In this sense there is no danger
of too much production until the
more

actual

country
and

go

standards

begin
on

of

with

a

Information

of

this

far.

Every morning as I walk to the
in Washington
I see the
children going to school and I am
impressed by the fact that onethird of them are more definitely
undernourished than most of the
heifers and pigs on the farms.
office

can

be

calculated to foster and pro¬
mote free competitive enterprise
ner

and

the

tions

general

condi¬

welfare,

which

under

afforded

there will

be

useful

employment op¬
portunities,
including
self-em¬
ployment, for those able, willing,
and seeking to work, and to pro¬
mote maximum

But this world trade machinery
is

badly out ,of kilter after two
a long depression.
don't actually swap wheat
for tin. The payments are handled
through financial channels and we
world wars and

You

and

allies

-

have

just set ,up*
some powerful financial machinery
for this purpose—the World Bank' <
for
long-term investments v that r(;
will increase productive capacity
our

all over the world and- so make qsall better customers for each .other

Stabilization

the

and
will

keep

our

Fund

different

can

swap

dollars

that'

money

systems in working order
we

so

that

British

for

pounds

or Mexican pesos without
getting all messed up.
Up for discussion and decision*
right now is the first big example
of how we (as the greatest and
richest industrial nation can help
to stabilize world trade -in pur-

:

,

best interests.

own

The British Loan

employment, pro¬

duction, and purchasing power." ■
Then fh& Act sets up machinery,
both in Congress and in the Ex¬
ecutive Office of the President,
intended to result in measures
that

will

And

accom¬

accomplish

We

have

British

negotiated with the
loan of three and three-

a

quarter billions, excluding ihe
lend-lease settlement, which is to

these

be repaid

years

pur¬

the really, tough part

now

straining every effort to catch
up with the demand for housing
are

Federal

caught
needs.

up

builders

with

Market

1. A

when

these

by the

plan

for

ments

will

will

needed

and

that

Our

the

name

United

of the people

States

—

in

Machinery in

j

the

lead to

all

ac¬

we

,(•.

be based

must

.

and

coordination

functions

of

and

public

(
in

at reasonable
are
a
good

there

must

tities
in

just

we

the

help to smooth the

necessary

world.

because

our

certain things

comotives

cities in the world.1

human

other

resources

and

and

and

automobiles

can

is

be more, than we

need for our own use in the

long

things

are

these

operation by all our private and
public organizations.
Now that is a big order but I

profitable to make because they
are
specialties of ours; and any¬
way we have to have exports in
order to swap for what we im¬

believe

Utilizing Productive Capacity

And this in one of the wealthiest

confidence

or

like wheat and lo¬

and

run—whereas

direction

things
have; we

capacity to produce

toward

same

don't

long run, is by swapping
neighbors all over the:
We want export business

more,

the

cost because
many

our

in

so

port.

in
•

the

we

have

a

co¬

good beginning
Act of 1946

Employment

which has just been approved by

,

up the 7
best cusr 7

The nations that make

British Empire are our
tomers and

also, our main source*

of supply for much of what we
must

*'

import.

English are in the position;
having to deal with the rest
of the world whether they like
it or not
The question is, do
we or
don't we want to share
The

of

in world business? If we want to'

re¬

get them in increasing quan¬
and the way we get them,

plans of the Federal Government,
that these functions and plans

that

prosperity

world security,

We need a healthy world trade
our own business. We need im¬

work

invest¬

measures

on

security absolutely

work

other

the other.

world.
'

share in the huge markets of the
British Empire, then
we
must
quires a healthy world trade. But
there is no world security and no help in setting up financial ar,-'
continued
healthy world trade; rarigements that will allow it,
v
So
there
we
are.
When w®: *
without
a
stable, healthy, and
really look into the question ,of
growing prosperity in the United
States.
Let me touch just briefly "utilizing all our productive cap~
on
this other set of problems— actiy" we have to go from the <•.&•
back yard and the feed lot clear/7/
world trade, on which interna¬
up and down and across our own
tional security must rest.
r
;
country and around the whole
A Healthy World Trade Needed
world,,
'
- .
;
('
and world

with

establishment

various

the

other

Congress

Executive

that will

to

in

from another,

one

domestic

own

which

3.

transition.

or

<

separable

not

for each depends on

ports

words the responsibility
knowledge to each other.

short¬

time

have

think we

all substantially agree on.

in the*

of

focused.

have just been dis¬
cussing, call it what you will;
"utilizing all our productive cap¬
acity" will do for the moment.
And these two great goals are

eral Government should and must

have

will have been made good;

government

'

hearts

are

the thing we

2. A recognition and definition
of the responsibility that the Fed¬

against the

wartime

do its part I

declaration of policy

we can

of

time

can

need three things:

vide

ages

must

In order that the Federal Gov¬
ernment

carry

warning

the

of

-

we

eral Government speaks and acts
solely in the name and on behalf
of the people of the United States.

industries themselves should pro¬

ample

Government

forget that it means simply
—the people as a whole. The Fed¬

accumulated

estimates

speak

we

never

industry that will

our

When

since.

needed

when

do

is what we have used it for ever

and for commercial facilities and

come

its

part and its
part consists of doing those things
which we can't do separately or
through
smaller
organizations
whether public or private. That is
what we set up the Federal Gov¬
ernment for in the first place.
It

ments.

the construction

[
of

Government

must

and

people

The first is peace. The second is

\

Federal

course

minds

the

which

the American

Government

by State and local govern¬

other

All right, then: how can we

The

So if it isn't lack of need for
the goods and services we can
produce and if it isn't lack of




thing

Responsibility of Federal

time to shift to other products or
to go after export markets, and

.

any

work together.

of

minimum

to an average greatly
we have reached so
'■
(•"
(' ■' ' ( ■

the

job.

kind, (col¬

lected by businessmen fpf the use

and then the industries will have

higher than

functions, and
resources for the purpose of creat¬
ing and maintaining, in a man¬

,

'

in7'this

life

plans,

-

* 5

-

cushion the inevitable letdown in

for that mat¬

or

its

they
;

v

millions

any

to coordinate and utiL

...

all

things

.

(

liv¬

danger of producing
useful article than
is wanted by someone somewhere
of

ize

•

.

think

the

productive . capa¬
city, we should defer our public
works and public buildings that
are not actually and immediately
needed.
We should defer them,
first because they would add to
the inflationary pressure during
this batching up period—and sec¬
ond, because they will help to

immediate

more

At

others.

rate, it is certain that the Ameri¬
can people will not again tolerate

It is perfectly clear that during
the immediate period when we

think

agree on

means

import

over a period of fifty
{
with 2% interest, beginning-';,
in 1951.
It is up to Congress jtp
large-scale idleness of men or poses and to review and revise approve or disapprove this ar- ■
and adjust these measures from
machines. ;
rangement, and I hope they dp'f f
( I have written at some length time to time as their effects be¬
approve.
But it is important that";1';
in the book called "Sixty Million come^ clear j and measurable and the public generally should under¬
1 ' stand the situation.
"
<■. '•
'
Jobs" the main outlines of how I as conditions change.

the

all

to

close

Public Works

Production?

tion, it

can

to

Why does Britain need our
Now we must follow money?
plished.
Other plans or parts of begins.
Because she ran up such a huge
plans have been proposed and dis¬ through, in our own businesses
cussed rather widely especially in and organizations, in the States external debt during the war. The
leadership of General Albert J.
the past 10 or 12 months.. It is and cities and counties and Triple reason she ran so far into debtBrowning, who is Director of our
is because she is the greatest ex-7;;
amazing how similar (they are iri A's—and in Washington.
Office of Domestic Commerce, and
We have come a long way In porting and
importing country •;,/
Under Secretary A1 Schindler— general principle although I sup¬
and when her exports had to
both businessmen of long practical pose they would differ materially pledging the Federal Government
to maintain employment oppor¬ "cut off and devoted to winning
experience; (The Business Advis¬ when we get down to brass tacks
(
tunities for all and to strive for the war she still had to import
ory Council of the Department, and start faying out specific ac¬
maximum
production.
But—we food,and raw materials. In addi->($(
which is composed of active busi¬ tion programs.
must
remember that so far we tion, Britain suffered heavy pby- $(Every, responsible proposal I
ness leaders, is developing with
have / seen, jncfuding my own, hay.fe. made only a pledge, A pro-* sical damage and lost something
General Browning an extensive
lik$ half her merchant fleet.
%; ( n
set of marketing estimates.
These hinges on just one, thing — we gram of action must follow if this
must work together.
;
We must pledge is to be translated into the >* 'To do this, Great Britain had to
market studies will help them and
make various emergency arrangej-^! |
their business associates to carry have better cooperation and bet¬ realities pf fuj! (production and
ments within the British Empire,
their thinking and their produc¬ ter understanding among agricul¬ full employment.
and set up the sterling bloc which
ture, business and labor. We must
tion planning beyond the imme¬
Unless this program of action
diate period of excessive demand have in addition much better co¬ does follow, the pledge will be amounted to controlled, currency. •
She; will continue such artificial (
and into the period when we all ordination of governmental poli¬ nothing
more than a
scrap of
And finally paper, in the pages of the very arrangements if she has to; but if >
intend to maintain a high and cies arid (programs.
we must have a general .feeling, a
this happens-ft will interfere
books of; history that write the
steady and growing rate of pro¬
iously with1 healthy trading be¬
duction that will match the coun¬ strong Confidence that we can do record of our next depression.
the j ob and that we will do the
There are two great goals on tween the nations all over the
try's long-term needs.
all

much production do we want?
How Much

set of private and

public policies
that will .achieve and maintain
any one of these" conditions will
also
achieve
something pretty
a

country with
the active cooperation of the De¬
partment of Commerce, under the
nessmen

also

our

otherwise?

use

definitions; but

I have reached the conclusion that

plants and transporta¬
can expand as rapidly as

to

•of

keep—full

I know these con¬

v

cepts differ slightly and you can

and power

universal desire of all

get—and

we

on

our

what you like,

businessmen, will have many
by-products of value. For ■ ex¬
ample, it should be a guide to the
forward planning of public works
by the Federal Government and

can

all agree

objective
— call
it

ployment, or stable prosperity/ or

items; and these few, impor¬
tant as they are, can be traded
for with our good neighbors.
Tools and machinery, factories

tion

and the immediate outlook.
What about the longer run?
How

we

this

productive capacity,
or
full employment, or perhaps
full production, or high level em¬

figures in Washington.
First and tion we
foremost it is his job to protect they are needed.
This was con¬
the consumer.
Second, it is his clusively proved by the mush¬
job to hold the balance between rooming of war plant facilities all
over the country in 1941-1942.
the
;
warring producers
groups.
Third, it is his job to (protect
Some people think we have too
the producers against themselves, much
industrial
capacity even
to keep them from climbing the
now.
In order to answer this
hill of inflation only to jump off
question,
careful
estimates
of
the precipice like sheep upon the market demand are to be,
pre¬
jagged rocks of depression be¬ pared by forward-looking busi¬
neath.

Benjamin

as

full

accomplish

utilizing

proportion to our
among all the great

moderate abundance except

most dramatic

to

which

than

more

in

"
«. " : <
*
Minerals and forests we

,

the

at

Many plans have been suggest¬
ed

of land for our

much

but,

production, full
The Federal Employment Act
'
'
The
act
declares
"a
national
This is very simple arithmetic
but it isn't a simple problem. And policy on employment, production*
and purchasing power."
It recog¬
yet this is exactly the problem
that we face if we are going to nizes "the continuing policy and
"utilize all our productive capa¬ responsibility of the Federal Gov¬
ernment
to
use
all
practicable
city" over the years.

few

Protecting the Consumer ;;
is

It

use.

share

nations.

changed*

This

our

population

money

supply in the hands of the con¬
sumers.
After a great war, for a
.period of several years, all that
i

own

perfect

employment rate.

,.\i

"■'

We have plenty

I don't suppose it

milestone.

a

is doubtless the best we
right how and it is
plenty good enough to get started.

ness

>

long.

is
is

some¬

that there is

us—have

spe-.

most- of ' them—lil^e

and

do not have.

thing that keeps us, from time to
time, from buying of each other
enough to keep ourselves in busi¬

What holds us back? (j
If it is not need, then it must
be one of two other things. Either
country.

cialtifes

This is very important news. It

Franklin said about the Constitu^

It must be

higher profits and workers for our capacity to produce is not
higher wages; and as producers, high enough, or. pur ability to
especially
organized
producers, market and distribute the output
they have a greater chance of —to buy. it from each other—
must be less than our capacity.
'
success than the unorganized con¬
I submit that it cannot or need
sumer pushing in the opposite di¬
not be our productive capacity
rection for lower prices.
In ordinary times this tendency that limjlts us, or at least not for
of
the
organized
producer
to
profit at the expense of the un¬
organized consumer is held in
check by the rising tide of pro¬

7(;• >''('-y.f;i':

dent.

tries need markets for their

In

needs

yard and the feed lot, (
Empire and the world
parts of the same whole J
indivisible problem; all are keyed
to this thing which your program
The back

the British

—--all

are

committee named "utilizing all "r(
our
productive ' capacity"
and
which
others call
full employ- V
ment, or full
you

will.

production, or what (■
/..

We have noted

■.
*y
also the immedi¬
t

pressing danger of going
through the windshield—the danger of taking off the lid to soon,
the danger of uncontrolled infla¬
tion that would cripple our whole
effort toward achieving the con¬
dition we described—and the val¬

ate and

iant fight

putting

up

that Chester Bowles
on i our

have noted the bright
the
our

same

way

business.

the world
Other coun¬

short pros¬

of post-war boom,
prospect of the inevitable
pect

is

side. Then we

and the
collapse

«

-V
;

Volume

163

Number 4466

THE COMMERCIAL & FINANCIAL CHRONICLE

written

Railroad Securities Again
At the "Cross-Roads"?
(Continued from'page 963) "

labor,

the retroactive date of the

increase, and how

much and how

ing

months

weeks

ber'sand

f

soon

offsetting rate relief will be road NET EARNINGS (after all
granted by the ICC.
V,.. I charges) -V, have ,, OUTWARDLY
Thus, the writer endeavors to presented an ajarming contrast
sh'ow the unending uncertainties ber and
December, .1945) railarid ^5
confidence-shaking
of the past several

(being substantially lower)

influ¬

ences

particularly applicable to railroad
security holders—yet, asking the
reader to recall
how, after each
difficult period was
ended, the
railroad

securities

continued

again into brand

soar

with

accelerated

to

Defense. Projects,

$809,038

755,218

September

After All

1944

836,183

1945

/ '

1944

$62,990
51,151

Amortization 1*'

of Defense

Charges

.

Projects

1945

1944

$58,474

$20,303

60,400

20,066

$15,788
,

16,177

679,178

799,229

8,848

56,503

123,192

696,991

818,303

109,945

780,231

20,224
37,214

60,420

661,181
613,691

63,506

39,829

17,519

5 755,515

t

'< 41,473

.t

18,872

____

October

Noyember

.

December

i

® 16,617
.

17,043

fNot available.

Naturally,
credits

there
were
partial •. offsets to

as

tax

Hosier Days Ahead

the

I To the writer, there are still
eVen "rosier" days ahead for the
railroad security holder; provided-

September,, 1945

(and what will
be^ reported as the. October, No¬
vember and December 1945) com¬
parisons. Nevertheless, the fig¬
ures,
coldly
presented
alone,
WITHOUT any offsetting partial
explanation do present another
of, those "cross-roads" as noted in
the. opening paragraph
of this
statement; add thereto the mount¬
ing uncertainty of how long the
strike

reconversion

-

lower

level

tinue

and

fluence

of

will

con¬

how-much-arid-retro-

of

active-to-what-date the

rail¬

new

road employees' wage rise will be
and WHEN and HOW MUCH the

ICC

will

relieve

costs/ with

the

I pointed out,

the

was

low

to

halt

a

excuse

the

once

for

market

chances of started down.

or

anticipation sold on realiza¬
or
just in advance of it.

The

great

majority

$6.5 billions of operating reve¬
nues
annually during the early
postwar years indicates annual

increased

higher rates, and the

news

bullish

a,

either held

had

added

or

a

freight

doesn't discount the

market

violated

w a s

the

outlook

would not have been; good.
thing twice. And if the
advance was in expectation Well, you saw what hap¬
of a steel price rise, then the pened. The market did break
the 200 point, closed the
actual occurrence of the event
long
would, likely be the signal for standing gap (tq which atten¬
same

a;

tion was called three weeks

decline.

| At the' time"' this warning ago) arid then proceeded to

ceivably might be lengthened as
the wage-increase,
j rate-increase
differential
widens, — a
matter
which

foreseen

was

time

some

of the many "cross-roads" con¬
fronting railroad security holders,

of

.

000 out of

other agency

wage rise

problem. How

our

we

of

work to¬

decade

the

spent quite

of

the

1920's

I

I

years my

theme

me

agricultural
at? home

the

to

statement

made

inevitable.

was

■;v"

'sis

■'

it

the

is

writer's

considered

that markets do not discount
the

like

break

took

worse, as
Here

was

talk

of

a

raise

in steel

prices.

where

from

figure,

or one

close

<

,

see

the

again.
are

20 years

thing

realize that

we

across the United States and
around the world, we are going to

can

today

see our¬

selves

as
part of an indivisible
world, a part of a world com¬
munity all of whose people are

members of each

other.




,•

-

and surtax rate of

and

of

of

be-

are

more

believes',

after

all

clearly,

the

now

is

some¬

The

first

down

to

center of trading area that
took three weeks to establish.

Between those two

points is

the

area

the

signal for the next direc-<
; The penetration need

of decision.

A pene¬
tration of either the upper or
the lower figure will give you

tion.

not be violent.

lower

the

start of

a

Dullness at

figure
new

be the

can

of

zone

accu¬

But that lower

mulation.

must be

ure

*

The

case

eliminated

ON

and

AN

railroad net

AN¬
earn¬

ings',: results for the early years
of the post-war period will, in
most

cases,

with

favorably

compare

highly

satisfactory

showings.
•

1944

now, on

write-offs

maintenance—

[ also substantial curtailment of

war-heavy overtime pay;
5. Cancellation later this year of

j
6.

land-grant rates;
Ability to utilize

got
Monday prices
opened down and .closed off
almost three points. The rea¬
the

profits

tax carryback credits.

Summary

Summarizing, it is believed that
railroad operating statements for

you

son

wasn't that the

disappointing

news was

Stocks are
33; Flintkote
at
35M2,
stop
35Mi,
and Waukesha Motors 32Ms,
proportions.

ous

Baldwin at 34, stop

stop 29.

,

More next

Thursday.
Whyte

—Walter
views

[The
article

clo

not

expressed in
necessarily

at

this
any

coincide with those of the
Chronicle. They are presented as
time

those of the author
x.;;aivA'v.-

only.]

LAMBORN & CO.

SUGAR
Exports—Imports—Futures

much as it

so

\

DIgby 4-2727

Thus, the belief that the current
whatever

further

period of price weakness
experienced in the
regarded

as

near

be

may

Pacific

Established

yet another attractive

opportunity
railroad

to

Coast|

future, be

f Securities!®!

acquire

selected

securities.

■■■

Orders Executed

Pacific

Keen & Denison Are

on

®

Coast Exchanges

itBb

The

Code

Electric

New

the

New

,

York
York

of the board of Rambo, Keen,

Close & Kerner, Inc., Philadelphia,
and J.

with

Morgan Denison, associated

Stokes Packard

&

Smith

to

'

' ®,

<

'

;•

Stock
Curb
Cotton

Exchange
Exchange
Exchange

Exchange,

Board

of

Inc.
Trade

Cotton Exchange
other Exchanges

Orleans
And

(Associate)
Chicago Board of Trade
New York 5, N. Y.

14 Wall Street

Teletype NY 1-928

COrtlandt 7-4150

N. Y. Cotton Exchange
NEW YORK 4,

Bldg.

N. Y.

Private Wires to Principal Offices
San

Francisco

Monterey

—

—

Santa

Oakland
Fresno

the board of directors.

Commodity
Chicago
New

Stock Exchange

York

York

York Curb Exchange

'

man

;'

Members

Products

announces

Members

Jili
New

New

Corp., Philadelphia,

1856

H. Hentz & Co.
New.

Directors of Code Etec. Schwabacher & Co.

—

Barbara

Sacramento

in

break reaches danger¬

a

news.

election of Joseph B. Keen, Chair¬
excess

list

our

of

care

Over the week end you

only 38%;

charges

have in the

you

NEW YORK 5, N. Y.

*

*

wholeheartedly,

special- influences

NUAL BASIS,

*

*

*

stops

99 WALL STREET

news) became public.

normal

of; defense

property

deferred

a

heavy

; amortization

I,projects,

,

that

condition, finally led us to.
God
time we may be

the

that

period. and

; for

ation,

grant that this
wiser—that we

in

abandonments

4; Elimination

find ourselves again in the condi¬
tion of the twenties and the thirwhat

efficiency

] loWance of deducting

immedaite domestic concerns,
an'd see the whole economic situ¬

now

*

writer

it

®

.

our

know

^

3| No need of deducting excess
^ profits^ ytdxes; besides the al-

we

part of the wprld market—
unless we lift up our eyes from

We

can

put

.

a

ties

whatever

granted by the
be found among the fol¬

j may be nearly $50,000,000
neath those for 1945;

happening

Unless

of

•To
any

2; Fullinfluence of lower annual
J fixed charges, which fpr 1946

later and I

same

to

surprised, despite the poor early the market indicated. The re¬
1046 earnings' start, to see net sult in such a situation was
results for the full year
1946
obvious. No matter what the
compare favorably with those for
the full year 1945—in fact, in news would be the market
rriany cases to be even materially would decline when it (the

1 tralized traffic
control;

,

it did.

it is

offsets

outside

j greater

right here
from bad to

V

them

All three stocks

thing twice.

same

pretend to any in¬
side knowledge but I could
cfiargeoffs, due to accelerated see that
expectations were
amortization of defense projects).
In fact, the writer will not be going way beyond anything

j branch line trackage, arid wider
| use of dieselization arid cen-

Otherwise it

go

.

S|S

this:

during the steel strike there should take

comparison* with like months of
the higher
1945 (when the showings were
Very badly influenced by loss-of to it.
traffic because of "V-J" Day's
I didn't
arid i strike ; influences, also ; the

better than results for 1945.

[ influenced by lighter weight
i
freight
and
passenger
cars,

situation

lists.

/;■

sis

pattern

here

This would be any¬
$2.50 a ton to
opinion that, earnings' statements something like $ 16 a ton. It
during the later months of 1946 was obvious that the majority
will
make
outstandingly
good of traders were
looking, for
for

'

inevitable that the

would

unac¬

J postwar period,: arid- especially

perity of American agriculture
was. geared to ;the prosperity of
world, and therefore we simp¬
ly. had to understand the world
seemed to

Contributing

ICC

that the pros¬

situation.

possible wage-rise

lowing:
1; Increased

the

economic

can

rate relief may be

in Iowa and other Corn-belt states.

was

the

wage-rise,

lot of time travelling
and.- Speaking to farm audiences

time after time

theoretically

Offsets of Wage Rise

a

Throughout those

possible $435,000,000

counted for.

gether? For instance, how do we
get wide, prompt, bold action at
Washington?
In

a

be ac¬
counted for, leaving
$153,000,000

•cahdd
do it? How do

their

to

-

we

and
they

The
major reaction started tak¬ 197.65.
rally
carried
ing hold. But just as the pre¬ them to 205.35 which was the

viousWeek\the; market'
indi¬
cated a reaction, so did last
and didn't predict
week's technical performance •
any continuation of the ad¬
show a halt around the 198
vance; On the contrary I was
explicit; in warning that; the figure. Of Course if that leVel |

Thus, a freight rate increase of
as high as 7.2% would, theoreti¬
afier the post-war boom—^inevit¬
able unless we do something to cally offset a $435,000,000 wage
increase (IF a wage rise is as big
prevent it. And we agree—do we
as 15 %), besides which the 7.2 %
ndtt^hat the problem can be
increase compardS with the ap¬
.simply [stated! It; is, hovV can we
proximate 4.7% freight rate in¬
wdrk together?
but the answer
crease
temporarily granted arid
isn't so simple.
then rescinded some time ago by
We agree that every individual
the ICC.
an'd every organization^ public and
; If ONLY the 4.7 % freight-rate
private, has its part to play; and
that the Federal Government, rep¬ increase is restored, and applied
billions of * anticipated
resenting all of us together, has to $6.0
a
big job of coordination and freight revenues, then $282,000,-

revenues "

billions annually.

currently.,

And there is

what

selling and
the public buying the result

The

So last week the fear of

import

to

on

.

ago. However, it was1 then—and
is now—considered simply as one

do

the

With the insiders

thing

arOfthd $6.0
'
;

no

of

*

EARLY postwar period.,

reader has his fingers on the pulse
of the railroad securities market

leadership that

dam.

favorite public, however, saw in the

Such eagerness wasn't

Healthy

'

COMPOUND, in¬

the

as

the

used in the stock

as

the

over

bought stock in

fig¬
held.® There are
turn up.
too many people watching it.
was given the averages were
*
*
*
If it breaks, a large amount of
about 208.
It was then ex¬
confidently, expects postwar An¬
That was the situation until public
selling can develop
pected'that there; would be a
nual Operating Revenues volume
decline to about 198, based Saturday morning. By that that will carry them much
for the Class I Roads of around
lower than generally expect¬
$6.5 billions. 46% thereof would entirely on technical factors. time the market had man¬
ed.
The public can be just as
indicate a wage correlation re¬ When last week's column Was
aged to get up to across 205
quirement of around $2.9 billions
rambunctious on the down¬
on the
strength of a lot of soand as much as a 15% wage rise
the early part of 1946 will con¬
side as it is on the upside.
called [interpretations,
and
(IF.
granted)
would
indicate tinue: to make
poor comparisons
bullishness was again in the Maybe more so. Panic selling
higher: wage Costs to be accounted with like months of the
previous
for—$435,000,000 annually in the year—a period of time which con¬ saddle.
I now call attention cannot be gauged.
We be patient.
Railroad wages, on the average,
have consumed around 46%
of
operating reveuues.
The writer

influenced

traffic

few

a

nearby rally will be nullified.

hews.

■

Net Income

Operating Revenues

August

week's

.«

(000's omitted)

$796,129

should hold

Last

as

CLASS I ROADS

still

But,

market,

i Two weeks ago this column
disclosed
by the selected comparisons con¬ warned that the market was
tained in the following tables:
J too eager in anticipating good
of

high
ground for the recovery period.:
Of late, say, for, the three clos-

July

topic.

Amortization

of

rate

sellers.

range

of lower Operating Reve¬
(after "V-J" Day) and the

ences

new

1945

joins

water

was

dwindled tion

buying stocks, not the cause.
Week-end hews sees culmination And that the majority of in¬
of inside selling.
Worried public flation protectors would skid

marily to the COMBINED influ¬
nues

were

considerably. Inflation
was

inflation

—By WALTER WHYTE«

similar months' results" for 1944.
This poor showing is due pri¬

years—

talk

Whyte
Says— If

October, NovemDecember,® 1945 rail-

had

ago

down

Walter

of

averages

the wild bullishness of

Markets

'

the

just under the 200 figure and Those who

Tomorrow's

*

,

999

CHICAGO

DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND

Expect Capitalism to

Does Russia

Finance
962)

(Continued from page
from

needs

nancial

lions.

j

,

r

bil¬

at $6

us

It

the
now

-

Need

however,/ that
that it

likely,

seems

Kremlin

decided

has

get along with a consid¬

can

erably smaller sum ofs dollars or

rate that the matter is not

at any

so.pressing as- it was a few. months
ago.
Moreover, the attitude' of
members of the Congress toward
a

loan

large

Russia

to

been too favorable.

Two

tended

have

factors

to

One is the

point of the Kremlin.

reparations-in-kindf

from

acted

by; the

-

ex-

other

and

Germany

occupied

areas

equipment, Russia's gold
production can f be stepped up.
During the War, it is said, im¬
portant new

goldfields have been

in

uncovered

Siberia.

America's. incredible

Capitalist
willingness

buying foreign gold has
great boon to the Soviet
throughout its life,- and

to keep on
been

a

Union

-

Soviet

large Washington loan at the mo¬
ment. But it should be noted that
In Russia foreign trade, a State
monopoly, has not the internal or
external importance occupied by
foreign trade in many other1 coun¬
tries. Many quite small countries
play a much larger role in inter¬

national

American

accompanying
1937

statistics.

USSR

the

than

trade

Illustrative

does.

exports

only

small

but that the

factor in world trade,

icant

the

is

of, this

chart," based
on
The chart shows

that not only is the USSR a
USSR

an'insignif¬
prod¬

portion of its national

\V;-7

uct.:,,*

.y'tete

7tey

United Kingdom Loan

promises to continue to be a prop
to
the
Soviet economy, indefi¬

Affect

Difficulties

USSR's Chances

;

nitely yf The USSR wants to
nothing to disturb this state

for

affairs believe that the reason

Kremlin's

the

fcbout the

extreme

secrecy

USSR's gold resources
a fear that the
dis¬

from

stems

closure of their dimensions

might

7

report released on Feb.

the

In

by the House postwar commit¬
Colmer

tee—the

Committee—ap¬

statement that discus¬
sions are now going on between
Moscow and Washington on the
the

pears

$1 billion loan. ; Cer¬
tainly all signs point to the un¬
basis

of

a

likelihood

of

getting the

Moscow

America's
$6 billions Mr. Stalin desired. In
If so; the
Bay and V-J Day. The other is gold buying * policy.
fact, Stalin's Feb. 9 address to his
the fact that Russia now occupies Kremlin overestimates the intel¬
constituents is being interpreted
a
dominant position in the eco¬ ligence of Western capitalism in
as reflecting his resignation to the
this regard.
nomic life of such industrial coun¬
impossibility of - getting a large
Union's

V-E

since

armed "forces

tries

as Poland, Austria, Hungary,
Czechoslovakia, ,and Manchuria.
The capacity of such countries to

produce consumers goods wanted
Russia can be readily tapped,

in

and

so

immediate

Russia's

ease.

*

the

needs.'

Russia's

can

be

that

extent

problems.

To

"satisfied

through these two channels, the
Washington money is
diminished, although not elimin¬

need" for

ated."

it not

Were

for the neces¬

sity of paying back a loan, it is
hard to envisage a limit to the
amount

could

dollar help

of

use

the USSR

right now,
,

a

in

change

USSR Small World Trade

loan in

Factor

the

While it is most likely that

Washington.

-

-

f The

much

'

gold bullion the USSR now

Rushiah

commodities and

USSR's ; ability

to A supply In

the
such
the

commodities /is' limited.

1936-38 our
direct imports from the USSR av¬
eraged only $24,000,000, comprised

three

prewar

such

animal

years

commodities

as

furs and

products, a small amount

manganese

the

Russians

at

moment has

the

no;,chance' of; Congressional

ap¬
proval. If any-loan is made to the
Soviet Union at this time it will

Russia, to obtain from
loan of, say, $4 bil¬
lions, with repayment terms iden¬
,

Were

Washington^a

life is centrally plannedtend dic¬

some

extent

a

matter for regula¬

-"—w*

^

<

'J"~~
T&

'

M

v

>

f

"1%.

That is the trouble with many
of us—we - don't recollect, well.
I

When the sharp

spurs

the

\ If we got
correctional

workout,

less

due for

or are

a

Export-Import
and within that institution's

get more
unman¬

either

use¬

severe

ordeal of retraining and readjust-

Russia's coldness to the Bretton
Woods Fund and Bank is often at¬
tributed to

»

J,

*

"*
Of W0RL8
8

the uncertainties

t

'

of
-

a

until

war

they

been talk

that

of asking

there

has

The State Department will do
nothing to push a loan to Russia
>

the

British

loan to the USSR would be

the realm of

possibility, but. it is

said.that

Moscow

is

not too

en¬

thusiastic

about

the

terms

and

restrictions

Import

/

which

terms

the

the

*

/

Export-

Bank wraps around its
Theoretically, the Export-

comparable to those offered

British,

this

The

is

loan

before

given is
that there is "no legislative back¬
ground" yet for a special loan to
reason

Government if

unlikely to accede. While Russia's

two

chemist

three which don't.

or

who

A

the result he
experiment

gets

first

the

at

eral times to be sure he isn't

misled by a

~But
isn't

the

being >'

lucky coincidence. 7--

.

human being
way.
The ten¬

average

this

trained

dency to find what you are look¬
ing for is especially dangerous in

economic, business, or social mat¬
experimental, proof is
impossible. In these things, gen¬
erally suitably disguised, there is

ters where

if This/f believe, is what is known
psychologists as "rationalizing.#"
perhar/ the most dangerous
single tendency in the world today.;It is the enemy of clear
and honest thought.
It leads to
the adoption of expedients dis¬
guised as principles and it coun¬

to

It is,

sels the abandonment of these socalled

"principles" when they do

quite fit the purposes of their

not

proponents.
We

v

find

Russia.

,

call

may

method

a

tendency to

the

which

does

what

want it to do now, but which
will be dropped when it does not

you

Congress for

A $1 billion
within

enlarged authority.

attacked in

were

194L

Congress.

resources

for

,

Bank

billion

finding what we are looking for.
A
lawyer who finds One
case
which supports his contention al¬
ways has a temptation not to look

Why are we that way? Prob¬
a marked inclination to determine
ably because human nature, is al¬
the answer first and then find a
most infinitely and rather quickly
adaptable., to circumstances / and •theory, principle or method which
Will produce the desired solution,

while

capacity.
There have been .so
many calls
on that Bank's $3.5

'tefte'/tete

Beyond this there is an unhappy

faculty, possessed by all of us ex¬
cept those in whom it has been
eliminated by rigorous training, of

no

we

'really

future/#!
v

knows he should try it again sev¬

and

are

tendency to

a

out

run

unlimited oats and

ageable until we

all have

we

wants

down and we go
'
J
v -4
>

fractious

more

In

because

regard present conditions as likely
to
extend indefinitely into
the

the

we4 get

and foolishness

meanness

of us; we calm
back to work.

and

kick up.

we

however,

end,

of adverse

first applied to

are

obr tender flanks

have to be by the

possesses and just what Russia's tical; with those contained in the
loans.
gold-mining
capacity
is.
But Anglo-American financial agree¬
Import Bank could make / Russia
Washington rumor has it that both ment of last December, the* USSR
a. loan with the low interest-rate
are appreciable.
The USSR's gold would have to find during each of
and escape clauses contained in
stock, initially accumulated as a the 50 repayment years more than
the loan agreement with Britain
war
chest but untouched during
$127,000,000, or a total of $6V3 bil¬ but
officials of the Bank "deny that
the war, thanks to Lend-Lease, is
lions.
To find -this sum. by the
they would do so. The Adminis¬
thought to be close to $3 billions export of Russian commodities
tration
firmly f insists that the
today, while mine production of other than' gold would appear/ to
British loan is not a precedent fob
the country is "guesstimated'V. at
constitute a very large burden on
other countries, but
is unique.
between $200,000,000
and $300,- the Soviet balance of interna¬
While there would be nothing
000,000 of the yellow metal an-, tional payments, even on the mul¬
to stop the USSR from asking for
; dually.
Since Russia's economic tilateral trade system. *
-

tated, the production of gold is to

leek well,"-

-

in

:

No one out¬

He just don't alius recol::
;;

lil' hoss.

.

.

and other metal
Among the various foreign can¬
didates
for
Washington
loans products and miscellaneous items.
probably none has a better capar A stockpiling program would in¬
minerals' imports
from
city to repay a reasonable credit crease
than the ~ USSR—if gold is ac¬ Russia only temporarily,* ..
ceptable repayment.

ning?" ''No," drawled the wrang¬
ler slowly,
"he ain't mean.
He
knows what's right.
He's good

,

of

side the Kremlin knows just how

(Continued from page 959),
high spirits, or what¬
ever it was, was entirely worked
out. As he came back to the party
I! said: "A little mean this morn-

meanness or

fact is that even the -$4.4
billion loan to England faces seri¬
USSR could repay-a large dollar
ous
difficulties in Congress,- and
loan" in gold, giveh * a: long period
losses through the war have been
it will take all the Administra¬
to do so, its ability to service a
tion's best propaganda' efforts to large, it ia a fact that-the-British
loan of the magnitude discussed
sell
the project .to : a reluctant although unprepared attacked-the
by Premier Stalin in the form of
Nazi menace in 1939,- whereas the
American
public. : Under
these
useful merchandise is a; horse of
Russians did not come into the
another color. Both/opr interest circumstances, a $6 billion loan to
'

of

Russia's Ability; to Repay 4

in

result

One-Way Streets or the
Rising Market Fallacy

circumstances

.

do
of
economic
alter the affairs.; Some students of Russian
has' not

the view¬

dollar-loan picture from

heavy ;

Given a cer¬

Moscow,

mining

Preparations Minimize USSR's
Loan

iiom

tain amount of modern

,;;'i>•;

■■.

tion

Thursday, February 21, 1946

CHRONICLE

THE COMMERCIAL & FINANCIAL

1C00

OveralLLoan
Last

Policy Being Shaped

You

ONE-WAY 'STREET.

—A

eightV Republican
will travel on it so long: as it goes
by Senator Styles
Bridges *lof New Hampshire, in¬ one way: your. way. Then you
stop. / It doesn't exist for you anS?
troduced ByRes; 231, calling upon
more.
7,
the
Administration to supply a
complete picture of foreign bor¬ C Those of you here who have
rowings here, actual and prospec¬ just received your certificates may
tive. This j resolution'.is; obviously justifiably feel that you have
week

Senators,

•

led

,

being taken by the Administra¬
tion as a clear sign that Congress
is

in an "I'm* from Missouri"

now

nood: insofar,

loans

gressional

individual

to

Washington

countries.

foreign

Con¬

concerns

as

reports from sources which
isually reflect "the Administra¬

rews

tion's viewpoint on international
inancial policy disclose that the
Administration is now formulat¬

ing, apparently for the first time,
m overall foreign loan program;
program, moreover,Walling for
;he Export-Import Bank to han-

i

ile all foreign loan requests

other

Anglo-American

loan

the

,han

During.

agreement of December.
;ecent months the

growing "show
me" attitude of Congress!ad

•

of

the

hearings

Bretton, Woods
year

time

of

last

the

At

effect.

m

Administration

seemed

not

be

to

witnesses

fazed. by

the

prospect of large loans to Russia
md other foreign countries.

Now

that all foreign lend¬
ing is to be concentrated in the
Export-Import Bank. While ex¬
pansion of its $3.5 billion lepding

it

appears

is to be requested this year,
Congress is likely to approve a
much smaller expansion than the
power

heretofore

Administration
had in mind.

te.

5.}
■;

-

has

teWC !te'' tejw tef

r;te-'vte

.■

•

■

A:-/.

-7

);■ £

Those; Czarist; Debts

|

The fact

that Russian Imperial

,

gained most of the technical equip¬
ment you will need for the prac¬
tice of your

profession.

All you

develop judg¬
balance;; It is

need to do now is to

and4 mental

ment

integrity
that is a pre¬
requisite for granting the degree.

assumed tha.t you possess

of

character,/as

"

One of the best tests for the de¬

velopment of your; mental balance
and judgment is to check yourself
frequently to see whether you are
finding what you are looking for
whether you are de¬

too often or

ciding what answer you want first
trying to prove it; in a

and then

word, whether you are losing
your tendency to go up one-way

'

streets*

^^

'Probably the most obvious one¬

street of this sort is the so"ability to pay" principle
it is applied to wages. , It
seldom mentioned in depres¬

way

called
when
was

sion

Wage-earners surely

times.;

Employers didn't

didn't want it.

it, either. Wages were not
to
the
point just shorjt of

want
cut

making losses,
under

been

they would have
pay"

"ability to

This, was

principle.
The

as

the

employer,

much loss

as

impossible.
took as

instead,

he could stand and

still remain in business.

sulted

in

than any
to

cut

a

This re¬

much less severe

measured on an "ability;

pay" basis would have been..-

,

Now, however; it seems
to be a way to get the

to some

praisal of the Kremlin's attitude.
Moscow has consistently . refused

they want: higher Wages,

Higher

recognize the Czarist bonds. In
past, when the question was
Moscow over balanced it
with a large bill for indemnity for

tified but not for this

Government
buyers

bonds can still find

indicates a mistaken ap¬

to

the

raised

damage

suffered

as-a

result

of

Allied intervention: after the Rev¬

olution. "Even - if the -So viet Union
succeeds
in
getting
a
loan in

Washington,

it/. is; unlikely

that

answer

in many cases, be jus¬
strictly one¬

wages may,

irreversible reason.
commissions, when
construction costs were declining,
came
out strongly for reproducway,

Public utility

tiye; cost; as a; rate

;

base.,

utility commissions find that, orig¬
inal, op as some.call: it, aboriginal

speculators- in -Czarist bonds will cost, is the correct rate base.-.
again, it is. quite possible
be bailed out.
'

,-r

re

*

'

i

?




I

'W.i

n

■

No\v,

r

i

i

■

Here,
rates
c, :• J

,

'

THE COMMERCIAL & FINANCIAL CHRONICLE

Volume 163 1 Number 4466

V"

'> >'

>4 '

j,

1

< '

I

"'''V,

^*i

(

•

Ls"should be lowered, but not for this

will be made

poratiori liquidates.7 The ;.part. of -ialso partial;-/ It does hot-; destroy

.V^v

>j

before the coiv

up

the

Securities Markets As

j

publjic debt by which the Cor¬
poration is financed is just as
good as though the corporation

One-Way

■

street ;,v

"i

The securities market

has, since
1938, certainly been going along
a one-way street which leads up.

;
'

:

-To
'

certain

a

were

the low interest,
easypolicy of the Government.
„

money

The fact that

ties

on
the
than usual

have,

smaller
10

whole,

been
last

the

for

12

years is also a factor.
War profits, while they may have
had some influence, have prob¬

r

or

in

used such

means

as

have

rec¬

and have

situation

the

tivities

s

>

or

the

ac¬

they are car¬

way

Nothing is further from
my purpose.
I have merely been
trying to establish certain char¬
acteristics

activities

of

that

are,

to

speak, sheltered from finan¬
responsibility, or are, or think
they are, immune from other re¬
sults of financial changes or in¬
stability.
v
so

cial

If

if

of

not found in

are

little

a

amination

less

desirable

these

activities

the

of

some

characteristics

private business,
critical

more

found

is

self-ex¬

busi¬

among

correct it. The. recent nessmen than among Government
requirement for 100% margins by officials, if they have a sounder

power to
*

is

Reserve Board

the Federal

an

i/ .example. The Securities and Exj
change Commission has consist-

appreciation of financial exigen¬
cies and contingencies, it is not
because of any superior wisdom or

'ently strengthened and extended virtue that resides in private en¬
which, while they terprise or in businessmen. It is
may have encouraged thin mar- merely that the businessman who
kets,' have certainly - eliminated survives learns from the bitterest
■
»
many of the improper practices of experience—
"The toad beneath the harrow
the past by which unscrupulous
•knows brokers, security dealers and com¬
Exactly where each tooth-point
pany
officials sometimes traded
against customers or stockholders,
goes."
.

;

1

its trading rules,
'

*

t

.

.

-

-

.

■

:

However, there is a certain resem¬
blance in all these efforts to the

v

famous old Mrs. Partington, who
tried to sweep the sea out of her

anything beyond'itself.
it

is

In a way,
elimination 'from the

the

economic

body of a waste product.
A If we walk
through an old, de¬
serted * ghost
town and wander
about among the half-rooted gallows-frames, peer into the ruined

(Pagett, M.P.—Rudyard Kipling)

the results of the profit-and-loss

system. .AWhat

.

operations

suffers

one

pangs

They

purpose.

regulation can do so long as
semblance of a marwilling buyers and

sellers
'

V-. '

J

trade, v.'<

can

**:\ V:;'

•:

*

-

in the present market, he has only
to blame.
He certainly

information and pro¬

all the

tection which

be given him.

can

The Securities and Exchange Com¬
mission requires

enue, fe in

short, everything • and
everyone he comes in contact with
operates

under

rules

which, for
him, apply whether they are fa¬
or against him.',
receipts and capital are
less than his expenses he goes out

himself
has

both

If

investor or speculator loses,

an

way;

vorable to him

U

*•'''*fSi"'*'

1

^ Investors Have Protection
hi If

corporations with

his

of

;business.,. Good ^intentions,,
benevolent ideas or political con¬
nections will

not

The

him.,

save

securities

representing the value
are worthless, void,
and extinguished.
The business¬
of the business

is

man

self-liquidating

and

we

now or

can

enough . tov place the
..stockholder
in substantially as

mento

tion \ full

of failure or

as

a

part of

an astronomical public debt. The
position as. a company of- slate is cleaned and so is the busi¬
ficer in judging the fpyospects of nessman.
'
j '
i
*his company* » He is-protected by
The
businessman
knows — no
A
the trading .rules of the Securities one need tell him—that he works
and Exchange Commission against in
a
profit-and-loss
economy.
.trading practices, and he is fur¬ War times,
when
Government
ther protected by the Federal Re- contractors - were practically; out
v serve
Bank in its control of the of private
business, there was
little danger of loss and. profit
use of funds for speculation. /
,
If there is a crash now, or in was limited by devices such as
excess
the near future, I do not believe
profits taxes, renegotia¬
it can be attributed to anything
tions and repricing.
In peace¬
Abut the bad judgment of specu¬ time no such guarantee exists. The
lators and investors. Unless a se¬ businessman pays for his mistakes

good

a

•

,

-

must sell his se¬
curities to provide funds for living
expenses,:: he will not be forced,
holder

curity

many

as were

and profits, partially at least,
his good judgment, skill or

fortune.

purchased out¬
right in the majority of cases, or
either have Joeen
<on

a

-

-

from
good
t

.

,

,

who traded on mar¬
Nothing Sacred About Free
Enterprise
■

gin in the late twenties, to sac¬
rifice his securities.
He will be
able to hold them, as they will

small margin.

spite of all this, we begin to
hear the story that there are not

There is nothing specially

principal virtues.

any more^ declining
that the market may

inevitable.

are

and

are

the

and

ever

use

in peace

time.

only need the material if
another war, just like this one,
breaks

out.

like the last

But

no

is

war

just

is in the form

form

of mild

Sooner

or

of income

inflation.

severe

later,

or

one

way

other, the debt will be
taxing the citizens.
v
There

paid

ghost left

by

war

only
expansion we

would have little to worry about,
If a few private investors were

ruined

would not be too

we

con¬

The fate of all capital is

cerned.

ultimately to be lost

■

no way
to make this
There is just one way to
make it tolerable: by the greatest
possible expansion of production
con¬

sumption. -That is, increased pro¬
ductivity may restore what is
taken away by a rising

ing the bad with the good,; loss
with
profit and; recession with
prosperty.
The choice is between

fancied

a

security, which demands the pres¬
of

and

more

actual freedom and

our

more

liberty

in return for unenforceable prom¬
ises of future benefits or a genu¬
ine freedom and

ity

which

!

real opportun¬

a

involve

must

bearable uncertainty,

B

;

tainly all of

uncer-

DIVIDEND NOTICES

S

more

frequent, the

had boom six months

and depression six months,
it would be quite tolerable and
easily provided for. The farmer,

indefinitely but will get
up on a plateau and stay there.
Plateaus, by the way, are very
rise

a

in

sung by different people, but the
tune is suspiciously like that sung

it.

It

winter, but he is ready for
is long, irregular periods

of boom

depression which are

or

hard to bear.

But

even

y

these

are

better than

the results of

Government

street

tion

is

corpora-

engaged in something anal¬

to^ business, rendering ser¬

ogous

vice

a

Corporations

of

some

sort

or

buying

or

sion

in

man's

material

some

Such

corporation,

a

or

product,

even

if highly

unprofitable, cannot fail. Any loss




or one

Destruction of one
corporation's private

is a calamity to that man
corporation." But it is not se¬

credit
or

selling

general.

rious to the economy as a whole.
It is in some ways a wholesome
purge,

All this is hard and pain-

v.

,

b'irst New

Jersey Corp. has been

Street., New York City.
Clarence K.

are

Charles D.

Officers

Pistell, Presided!;

Klinck, Secretary, and

Stanley M. Tracy, Treasurer. Mr.
Pistell in the
of

past was President

Pistell, Wright & Co.

DIVIDEND NOTICES

MliSMflHAIMERS
MFG. CO.
COMMON

DIVIDEND

NO.

87

A

regular quarterly dividend of forty
cents ($0.40) per share upon the issued
and outstanding Common Stock, without
par value of this company, has been de¬
clared, payable April 8, 1946, to stock¬
holders of. record at the close of business
March 14, 1946. Transfer books will not>
be closed. Checks will be mailed.

;;;. ;-vK;

W. E. HAWK IN SON,
Secretary-Treasurer.

;

.

February 18,1946.

.

Attention

of

holders

of

Allis-Chalmers

Preferred Stock is again directed to
pre¬

viously published notices of tho Call for
Redemption on March 4 of all of its'4%

share of Preferred

thus

converted.

prices of Com¬
Stock, Preferred holders who do not

of

fifty cents

Stock of this

ra

; ;

tion

on

business

Corpo- : 1

declared

was

of

substantial loss.

W

per

mon

re¬

close
a

i|

the Com-

(50c)

share

sell before

or

4 might incur

March 15, 1946,

payable

i

|

stock-:

to

American Cvanamid ;

'j-

Company -y

|
•

V;.;

,holders of record February

§|

; ;

28, 1946.;

■

"

,

Jb)

> V ••..

:\'r- 'V"

• •'

PREFERENCE
:

'tf'.t '.'d'.'

DIVIDEND

; The Board of Directors of Ameri¬

Cyanamid Company on Febru¬

can
(

19, 1946, declared a quarterly
dividend of 114 c.'» ($.125) per share
ary

We pay-

this tribute because the

Checks will be mailed,:;

/borrowed( by the Govern¬

ment returns

|l

the

on

:vft

outstanding

of

shares

the

5% Cumulative Preference Stock of
the Company, payable April 1, 1946

income. The only

no

.^6C{.

income the Government has is the
xr

to levy and collect' taxes.

■

.

■

to the holders of such stock of rec¬

ord at the close of business March
1KBASCRER

■

-1 ' K

Pliiladelpbia, Pa.

Government borrowing is merely

4, 1946.
■

February 15, 1946

.-v

;

.

COMMON DIVIDEND;

.

.

The Board of Directors of Ameri¬

the anticipation of

taxes,

as

that

can

ary

Cyanamid Company on Febru¬

1946,

19,

MAKERS OF PHILLIES

share

pany,

on

payable April 1, 1946 to the
such stock of record at

holders of

the close of business March 4,1946.
i

W.

,

RAILWAY COMPANY
1

V-. \i;r

_

Secretary,

American Woolen

meeting of the Board of Directors held
dividend of three per cent, (seventyper share) on the Ordinary Capital
Stock in respect of, and out of earnings for,
the year 1945, was declared payable in Canadian
funds on March 30,
1946, to Shareholders of
record at 3 p.m. on February 25,
1946.
By order of the Board.
FREDERICK BRAMLEY,
Secretary.
Montreal, February 11, 1946.
At

a

today

a

cents

five

P. STURTEVANT,1
v

Dividend Notice

;

quarterly

a

the outstanding shares
of the Common Stock of the Com¬

per

CANADIAN PACIFIC
A

declared

dividend of twenty-five cents (25<D

DIVIDEND NOTICES

Company
incorporated

PLYMOUTH

DE SOTO

DODGE

225 Fourth Ave., NewYork 3, N.Y.

CHRYSLER

VOU GET TH£ GOOD THINGS FIRST

TfiOM CHRYSIER CORPORATION

AT a meeting of American Woolen
of the the Board of Di.

KENNECOTT COPPER CORPORATION
.

120 Broadway,

,

New

York

5,

N.

A
a

cash

Company held today,

share

twenty-five cents (25c)

record
1946,.

^vv;;

at

15, 1946.
cents (25c)

distribution of twenty-five
and
a
special
cash
distribution

declared by Kennecott
able: on
March
30,

close

the

business

on

A. S. CHEROUNY,

I

March

1,

Secretary.

account

of

a

dividend on
share
declared,

DIVIDEND

arrears was

The directors of

Transfer, books -will close March 5,
and reopen, March 27, 1946. va
Checks will be mailed by Guaranty
Trust Co. of N. Y., dividend dis- '>!;

.1946
'•;
v

have declared
five

J;-...

:

•

F, S. CONNETT,

•

'* "I. Trfasnrer*

March

of

Company, payable March 15, 1946, to stock¬
holders of record at the close of business Feb¬
•

•

.

DODGE, Treasurer.

'

•

The Directors
vestors,

of

$
,'r"
;'W

business

of Fundamental In¬

Inc., have

declared

quar¬

;

Dividend

;

Notice

stock

business

19, 1946, a dividend of 37*4
share was declared on the capital

On February

stock of Ncwniont Mining Corporation, pay¬
able March 15, 1946, to stockholders of rec¬
ord at the close of business March

1,

March

record

of
on

at

15,

1948

to

the

close

of

March 1, 1946.

HUGH W. LONG and COMPANY
Incorporated
National Distributors

dend

declared

on

Common Stock

48 Wall

Street, New York 5, N. Y.

that

is hereby given

of

2per" share
the

on

a

has

divi¬

been

Common Stock

of

Atlas

Corporation, payable March
20, 1946, to holders of such stock

of

record

at

the

close

February 28, 1946.
Walter

of

business

^
• ..
A. Peterson, Treasurer

February 18, 1946.

1946.

Treasurer.

Atlas Corporation

:

Corporation's

share payable on the

Dividend No. 70

H. E- DODGE,

stockholders

to
close

j

terly dividend No. 49 of $.22 per

holders

Corporation
per

the

the

>Chairman,. Finance Committee

Fundamental Investors, Inc.

capital

Newmont Mining

cents

1946,
at

on

February 25, 1946.

the capital stock of Magma Copper

H. E.

14,

record

share

stock, payable

:*

;\.

On February 15, 1946, a dividend of Twelve
and One-half Cents (12%c) per share was de¬

26, 1946.

per

common

B. E. HUTCHINSON

Dividend No. 94

ruary

dividend of seventy?

;

Magma Gopper Company

on

Chrysler Corporation

a

($.75)

cents

outstanding

bursing agent.
February 20, 1946,

clared

ON

COMMON STOCK

Jiayable of record March to stocklolders March 20, 1946 5, 1946.

of

a share have today been
Copper Corporation, pay¬
1946
to
stockholders
of

of

rectors

the Preferred Stock of $2.00 a

Y.

on

February

destruction of Government credit

Government

t

A dividend

or Mumbo-Jumbo. >
y|:,;ivy v-;.:,
y.-YJ
..cxi
Government Borrowing Is Future

power

■

formed with offices at 55 Liberty

convert

,

money

'',

Jersey Corp.
Opening Offices
j

-March

000 Ju-Ju

;

.'

First New

mon

of the offering, re¬
taining, of course, a! little for the
support of the great $300,000,000,-

Taxation

' v.

Because of current market

distribute part

•

ipice.

verted into Common Stock at the rale of
and one-half shares of Common for

tribute to the
offerings on

incantations and

;on

their way to a dead-end or a prec¬

each

the altar of this spirit. The priests
accept them, They perform a few
dull ceremonies, mumble certain

meaningless

blindly

streets

two

our

in the sum¬
depression

Another traveler up a one-way

a

pay

We place

and

one-way

March

The

a

a disguised depres¬
expressed in an increase of
the public debt.
No single part
of the public debt can be can¬
celed or repudiated without the

way

isn't

a

a boom
and autumn and

in the

Here is a one¬

street.
Let us hope there
precipice at the end of it.

we

effect, has

popular in some circles now. The
words are different and they , are

prophets of the

If

year

mer

by the priests and
"new era" in 1929.

-

up

At

lost is part of the public

debt.:. We all

ghost.

lives.

resolutely

are

inherent

Cumulative Convertible Preferred Stock.
any time prior to close of business
4, Preferred shares may be con¬

Jllllllljlllllilliilllll!

lives and perhaps

our

children's

our

money

The smaller these

better.

; not

of

.

to be

some

that

But the ghost of the ghost town

created by the war is active and
It will haunt us cer¬

men

marching

productive energy of the country.
We can do it only by working to¬
gether. We can do it only by tak¬

it is the

as

fate of all mortals to die.

seems

human;" except wlien

by

is

below the level of* maximum

tainty which
in all things

an¬

or

pleasant.

ent renunciation of

one.

If the ghost town were the

downs

markets:

i

the tax

sacred

It has two
It works. It is

going to be

,

through which

means

tax, excise tax, import duties, in¬
heritance tax, capital levy or some

about free enterprise.

self-correcting.;; Ups

In

\

built

were

We will

financial ghost remains as a me¬

;

plants

and

materials we; don't
to produce mote than

produce

no

.listed securities to give informa>

The

now.

finished

are

useless now. The

to

need

all

ket in which

A-

it

The 'old miners

only

price level.
took their chances, won or lost This means if
production is high
and called it a day.
It didn't add enough we can keep the present
to a public debt whose every part living standard.
But we cannot
must be paid if the Government
keep it by insisting on walking
credit is to be maintained, 'y
\
up one-way streets.
We cannot do
But we have other ghost towns it by financial
sleight of hand. We
created in the war by the Gov¬
cannot do it by Government aid,
ernment.
They have served their we can do it only by freeing the

tors, The Bureau of Internal Rev¬

othere is any

.

from

over.

are

As long as

and

.

has

is the

payment can be made.
It makes little difference whether

malevolent.

*/ ward, there is little that control

•

lost.

or

streets.;; All his streets run
ways.... Courts, Government
regulatory agencies, his comneti-

; cottage with a broom.

•

-

by mining
It is gone. No

,

He is not allowed to go up one¬

,

there

was

either been exhausted

the fundamental pressures are up-

;

It is

T tunnels and stumble on the rust¬
ing gears and windlasses of < a
played-out mining district, we see

ried out.

in their

were

.

to attack various Government

ably been responsible for less of
Government agencies

spite of its losses.

fur but at least it is final.

You may begin to suspect that
the sole purpose, of this talk ;is

the rise than the other two factors.

ognized

se¬

credit is good as long as it exists

issues of securi¬

new

The

success.

are guaranteed.
corporation cannot lose. Its

The

extent, it has been

temporary recession in a generally
rising market. There are many
reasons
for
this, principally, • I

financial

a

curities back of it

following the same street since
•the early thirties, if we consider
the decline in 1938 as merely a

think,

1001

.r

Ifrf reason..''v;^ 'V
i

-

5

THE COMMERCIAL & FINANCIAL CHRONICLE

1

1002

: ; Thursday, February 21, 1946

^

-

of

days

which

in

normal

less accelerated

CO.

The plans of the
that such cash be

$4,200,000.

SEC.

contemplate

company

eventually

Details—See issue of

109,400

CINCINNATI
on Feb. 8 filed

1

group.

$10.
the
the underwriters, and 113,113
being sold by. certain stock¬

Of

CO. on. Feb.. 4

MILLING

STANDARD

registration statement for $2,500,000
15-year sinking fund debentures, due Feb.
1
1961, and 357,500 shares of common par
$1.
The interest rate will be filed by

filed

a

amendment.

1

"

Offering—The

shares

j

to the
common

debentures and
shares will be filed by amendment.
Underwriters—Stone & Webster Securi¬
ties Corporation is named principal under¬
the

of

public

writer.
•

,

■:v■'-r'

v

•

i'.vi" :a':"r'-y

v

'

y

C

.

WIRE ROPE CORP. on Feb. 4
registration statement for 42,000
capital stock, without; par value.
Details—See issue of Feb. 7.
/. • .
<
Offering—The company will offer the

UNION
'filed

a

shares
-

period of two weeks
after the effective date of their registration for sale to stockholders at the price
of S15.50 per share.
The shares not pur¬
chased by the stockholders will be offered
for sale to the public by the underwriter
at the same' price of $ 15,50 per share.. •

v

for

shares

42 000

'

a

& Co., Inc.,

Underwriters—P. W. Brooks

York.

New

;

registration state¬

Feb. 4 filed a

par).

ino

stock

379,894 shares of common

for

ment

PRODUCTS

DISTILLERS

NATIONAL
CORP. on

'

issUe/of Feb/7.:,
.T-, offering—The stock is being offered by
the company for subscription to the hold¬
ers
of its common stock,1 pro rata, at the
rate
of one-sixth of one share for each
share held at a price to be filed by amend¬
ment.
Unsubscribed shares will be offered
to the public by underwriters at a price
to be filed by amendment.
</--<.
<

Detrils—-See

.

.Underwriters—The

and Harriman Ripley

Glore, Forgan & Co.
■

&

is headed by

group

./ ■/

Co., Inc.

K

*

MONTREAL, CANADA on Feb.
4
registered $85,980,000 lVi %
tp 3'A %
debentures, dated: Feb. 1, 1946, to mature
serially in various amounts on Nov. 1 of
each year 1947 through 1975.
<,
;
Details—See issue of Feb. 7. v*.'«4 i
*
Offering—The offering price to the pub¬
will be filed by amendment. Underwriters—The principal underwrit¬
ers
are
Harriman
Ripley & Co.,
Inc.;

lic

First Boston Corpo¬

Smith, Barney & Cos,

Dominion Securities: Corporatjori,
& Co., Inc., A. E. Ames &
:Co., Inc. and McLeod, Young; Weir, Inc.
ration,

Wood,

Gundy

MONDAY, FEB. 25
filed

STORES CORP. on Feb. 6

ALLIED

registration statement for, 257,840 shares
common stock, without par value.
14." V",
'
Offering—The 257,840 shares of common
are
being -offered
by the company for
subscription to the holders of its common
stock at the rate of one share for each
seven
shares held at a price to be filed

a

of

Details—See issue of. Feb.

them

public

the

to

by amendment..
Underwriters

York,

will, offer
price to be filed

to underwriters who

will he sold

>

?•

at

a

*

-

„

•

/
New

Brothers,

Lehman

—

-

heads the underwriting group,

;

issue of Feb.

Details—See

14.

Offering—The price to the public will
be filed by amendment.
Underwriters—Union Securities Corpora¬
tion heads the underwriting group.

FEB.

TUESDAY,

26;^f!

common held at a

8 shares'of
filed

LIGHT

&

amendment.

by

filed

be

Underwriters—To

'*>■■-'*{{$$

i

.

price; to be
by

ment.

*

amend¬
/"';/

ELECTRIC CO. on
Feb. 7 filed a "registration statement for
675.000 shares of 4% cumulative preferred
stock, par $20.
Details—See issue of Feb. 14. y "
V
GAS

for

redemption

shares- of
par

at

its

cumulative

1%

preferred

stock,

The old preferred is redeemable
share plus dividends.
The

$100.
$125

intends to call
outstanding
146,478

company

per

company

their

livery
for

of

each

amount

to

is

granting

to

such

holders the

to -receive the -redemption price of
of old preferred by the de¬

shares

six

shares

share

of

675,000

new

of

of
old

4 % new preferred
preferred.
As the

preferred will be limited
the right Is limited to

shares,




shares

90,000

being

are

also

N.

also plans to selL- to banks $7,600,000
and use the proceeds to reimburse

27/a%

$2,250,000

of

1945,

prepayment

for

treasury

31,
and to

Dec.

on

New

York,

Was

incorporated

in

New

Co.

Manufactures

to

capacitors,
electric

as

public

con-

•/

•;;

offering

price

',.

initial

is $4.75

share.

per

-

• ■

to

''

'

.

<

"

Proceeds^—;The

proceeds

to Dumont
Business—Volume controls and different, Electric Co., the selling stockholder.
Underwriters—First Colony Corp., N. Y,
types of resistors used in radio receivers;/
J V, i
/ Offering—^The ,*' offering- price to the pub¬ is named principal underwriter.'/
lic is $4.25 per share.
Registration Statement No. 2-6162. Form
'
Y.

-

go

..

estimated

are

available

general

is

to

the

use

(2-19-1946).

corporate

The present inten¬
from the ex¬

proceeds

'
UNDETERMINED
present below a list' ofissues

DATES OF OFFERINO
We

$100,000.
G.

Underwriters—B.

& Co.,

Cantor

New

principal underwriter.

is named

'

pur¬

pansion of the company's productive facil¬
ities
to
the
extent
of
approximately

York,

/

•

will bo

$517,000 which

of the company.

poses

tion

at

the

for

S-l,

to the company

Proceeds—Net; proceeds

whose registration statements were filed

twenty; days or more ago, but whose
offering dates have, not been deter¬
mined or, are unknown to us. /

-

Registration Statement No. 2-6157. Form
S-l.
(2-14-46).

AIRLINE FOODS CORP.

notes

-Details—See issue

Dealer-Manager—The company has re¬
Merrill Lynch,
Pierce, Fenner &
to

dealer-manager

as

manage

a

to obtain ac¬

of securities dealers
ceptances ol the exchange

offetij;

facilities;
finance

Bendix,

and

Underwriters—Herrick,

& Co.,

"
POTASH

statement

for

(no par).

and

outstanding
Alien

The shares are issued £nd
are
being sold by the

Property Custodian who directed the

file the registration statement.

company to

issue Of,Jan/

.'Z Details—See

todian

Property

Alien

Underwriters—The

of

CHEMICAL

Dec.: 28 filed
a /registration
479,726 shares
of capital

CORP.' on
stock

&

Cus¬

to sell the 478,194 shares
public sale >to -the highest

proposes

stock

at

qualified bidder//IfWanyr such/hid" iaZaccepted and if the successful- bidder plans
to
distribute the shares
the prospeqtus
will be amended to include the requisite
additional

-$500,000

information.

tcr be

The; shares

offered ' constitute 90.79%
of -the 528(390
for advertising, .sales promotion, etc.
~
■'■Z/ v-' •"1
// '/
"
*
Underwriters—F/ Eberstadt & Co., Inc;, shares outstanding.
Business — Incorporated
principally for is named principal underwriter.
'*■ v.
AMPAL-AMERICAN PALESXINE TRAD¬
the purpose of developing and ultimately
i'i Registration Statement No. 2-6158. Form
manufacturing
helicopter parts and as¬ S-l. (2-15-1946).
ING CORP.on Oot. 3 filed a registration
"
'J<
•*
i
"V t
statement for 4QQ.00Q shares of 4% cumul¬
sembling / complete helicopters for com^
ative preferred non-voting shares. /
»•
mercial and private use.
'
;i Details—See issue.- ot: pet. 11.1 > * /1
SATURDAY, MARCH ?
OfferingT—The shares will be sold in the

N.- Y.

"

•

t.

f,-

•

and

Waddell

•

AMERICAN

working capital tp
inventories; $250,000 for

development^

;

Inc., New York, is named principal under¬
writer,

$2,100,000

estimated

research

Address—50 Rockefeller Plaza, New

tained

group

the- account of - the
deceased.
York,

soldi,for
Vincent

of

31.

of Jan.

offering; prices/to /the

Offering—The'

,

/Proceeds—Of the estimated proceeds $1,'-'
will be used for additional plant

;

Jan. 28 filed

public are- as follows; debentures, 98%,
preferred stock $10 and common stock. $6.

400,000

stock, par 50 cents. The shares

being

are

estate

a

shares

507,400

for

statement

filed

INC;,

HELICOPTER,

BENDIX

registration

on

registratibh statement for $1,000,000^5%
sinking fund debentures, due Feb. 1, 1961,
100,000 shares ot 5J/2%
cumulative con¬
vertible preferred
stock,
(par $10), "and
90,000 shares of common, (par $1).
j;

a

stockholders.

of common

redemption of its old preferred stock.

and

a

■/

Street,

commonly referred

the

Street,' Brooklyn,"

Clinton
:

Address—130

.

—

Offering—The

holders.,

*■

*

-v

(

•-

CORP.
on
Feb. 8
statement for 40,000
of cumulative preferred stock, par
The dividend rate will be filed by

CHERRY-BURRELL
filed'

a

shares

$100.

amendment.
Details—See issue of Feb.

;

over-the-counter market.

registration

14.

is offering 13,549 of the 40,000 shares of preferred to
the
holders of its
13,549 shares of 5%
dividend
series
preferred
in an
oppor¬
Offering—The

company

tunity to exchange their shares for new
preferred on a share for share basis plus
a
cash adjustment.' The exchange offer
is a step in a plan of recapitalization of
the company, .in pursuance of which.26,451
shares of the preferred, together with the
shares
not
issued
in
exchange
for old

sold- to underwriters

are to be
offer them

preferred,
who" will

Underwriters

at

transferred

be

1,600 shares wiil
satisfaction of a claim

in

The late Vincent Ben¬
dix, who died on March 27, 19.45, initiated
the
organization
and
founding 'of
the
corporation which was incorporated under
against the estate.

the
June

the

Bendix

is

in

of

name

1944,

5,

1943,

on: July; 29,
Helicopters, Inc.

of" Delaware

laws

under

thd naipe

was

On

changed ;tQ

Inc.
The corporatibn
affiliated or connected with.

Helicopter,

no

way

Aviation

Bendix

a

Z

registered, 505,-

The remaining

deceased.

/

Corpj

Underwriters—KobbejyiiGeaTh&rt
named

is

principal underwriter.

"

i

<

Registration Statement No. 2-6154. Form
S-12.

I

(2-13-1946).

registration
of common,

has

CORP.

statement

for

stock; par $T

filed

150,0Q0

•'

,Business—Light low-priced,airplanes. ;

through

«'

Offering—The .price to the public will be
filed by amendment.
'
/
■
/
Proceeds—The > net/ proceeds* will
be
added
in

working^■ rcapitalr

to

The -increase

working

capital is deemed advisable,
particularly for use
in the carrying of
increased inventories/ in
connection, with
the

again

corporation's
of

manufacture

engaging

aircraft

poses on
a scale which-is expected
considerably, larger in volume than

the

to

retire

the

existing

and. its. notes

pur¬
to be

prior
corporation also expects

The

war.

the

in

civilian

for

of $63,000

mortgage

payable

in

the

of.

amount

$18,179./
;
Underwriters*

1
— Hayden,
Stone" - & ' Co;
underwriting group.
^ f
;
Registration Statement No. 2-6159. Form

heads the

MINES,

DALLAS YELLOW KNIFE GOLD

LTD.,

Feb. 8 filed a registration state¬
300,000 shares of capital stock,

on

ment

for

^

par $1.
Details—See

of .Feb.

issue

1"

HUDSON
filed

series

14.

A,. $25

Address

Business—Mining.

PULP

PAPER

&

has

CORP.

Offering—The 300,000; shares are of¬
fered
at
a
price of 50 cents per share.
share

These

offered

are

Underwriter—Mark
ris

allowance

30%.

of
to

Feb.

on

15,000

underwriter, with
5%
additional

and

stock,

issue

Offering—The

par

15,000

public

par

-1

con¬

$50
and
10 cents.

;
'./..// /
shares of AVa.%
preferred
will be

Feb.

of

convertible
the

to

•

CORP.

cumulative

4 V2 %

100,000 shares of common,

offered

r

registration statement for

vertible 'preferred

cumulative

'

-

INVESTMENT

of

shares

371

and

Pa.,

//'

STORE

8 filed a

Mor¬

advertising and travel¬

cover

ing-expenses.,
CHAIN

1840

Daniels,

is" named

Street,

commision

speculation.

a

Philadelphia,

Building,

Bay

as

by

14.

underwriters : at

(2-18-18.46).

registration statement for 100,000
5 % cumulative preferred stock,

a

—

''

par,
220
East

Street,

42nd

1
New

York, N. Y.
■
.
i
Business—Paper and ^aper^ products; ; .
OfferingZ-The price to the public will be
filed

by

f
used

amendment.

Proceeds—The

proceeds
will be
principally to finance, 'through advances
to
or
investments
in
its
wholly-owned
.•

portion., of the cost
of
construction
a
kraft
pulp and paper
mill,
with
converting
facilities,
outside
Palatka, Fla.
The total cost'of the pro¬
ject is presently estimated at $6,000,0Q0.
The company expects to obtain the balance
of the funds needed to meet the cost, in
excess
of the proceeds from the sale of
its series A preferred stock, from its gen¬

Florida

subsidiary,

funds

eral

and

No

.

from

stock,

price

100,000

filed by amendment.
The
shares of common stock are in¬

be

to

The

Florida

new

mill

have

a

being offered by the corporation
subscription by
its present ; common

itially
for

stockholders

at. a

amendment.
common

be

offered

to

filed

be

to

unsubscribed

The

will

price

by

balance

of

public

by

the

tion

'of

which

will

be

used

expand

to

will, be converted, into paper bags or sold
kraft
paper.Bag > manufacturing
equipment, now located at •'Bellows Falls,
Vt.i will be moved to the mill.
:
]
Undtrwriters—Lee ? Higginson
Cprp.i ' is
named principal-underwriter.:. - /
Registration Statement No. 2-6155. Form

Underwriters

at

amendment.

The

offered
a

price

public

to

of

price

a

50

cents

offering

stock

by-

will

be

Jeffries

per

share

under

the

&

to

the

Thorndike,

preferred,

Inc.

and

for

preferred

$100.; The dividend rate will be
the shares have been of¬

par

after

—

at competitive bidding,
Erie

300

$4,000,000

'net

,

be

to

writers
:

$105

'

.

will

be filed

received

plus

under¬

by amendment.

(2-18-1946).

;.

/

-

*

S-l.

(2-13-1946).

.

"

BOND
AND MORTGAGE CO.
has
filed, a
registration "statement
for
accumulative- savings
certificates
series
STATE

1217-A,
cates.

New

YANK

LTD.

has

YELLOWKNIFE

filed

a

GOLD

registration

MINES,

statement

$2,000,000

series

1305,

Address—26.V2

and investment certifi¬
$1,000,000.
Minnesota Street,

North

Ulm, Minn.
—
Issuing

Business

amount

certificates.

z;/'/;'//://

>/.
and

selling
.

425,000 shares

,

/ /

the, undefwritihg group,
^' % :V

X "ft. t-

.—f. X

.

//'•

MILLS CORP.* on Feb. 1
filed a registration/, statement' fpr 5Q.OOO
shares of preferred stock, par $100, land
100,000 shares of convertible second pre¬
ferred, par $100. i The, dividend-.rates will
be filed by amendment.
*•
-•
;
Details—See issue of Feb. 7.
' "•« .* ?
BURLINGTON

shares of Con¬
will be initially

Offering—The- 100,000
second preferred

vertible

the corporation to holder? of
common
stock In Jthe ratio .of three-

offered
its

by

fiftieths'

of

a

each

share «of
share of

Feb.

14,

1946,

convertible- pre¬
held of

common,

at a price to be
The underwriters

will'

Registration Statement No. 2-6160. Form

S-li

:

oumhlative convertible

filed

together

the

names ' of

r

J

/

share

per

a

Jby amendment.
purchase any shares- of convertible
preferred .not
subscribed for and ..offer
them along with the 50,000 shares of pre¬
ferred at prices to "be filed by amendment.
Underwriters -—• Kidder, .Peabody & Co.
head the underwriting group. \
' -j
"

_

"face

Jan. '29 filed a

BURRY BISCUIT CO. on

registration statement for 100.000 shares
convertible preferred stock, .par $20.
Details—See issue of Feb. 7.
,
.

$1.25
-

to the .public, is
' 1 ":
underwriting group
Alsyhe, Noel & . Co.,
N. Y„ and -Carlton M. Hlgbie Corp,; De¬
troit,' ;/;/;;/"/,.,
;
*
'
-1

*:

Offering—The

$26.50 per share."

Underwriters—The

*. /

stock, par $10.
All of the com¬
mon shares are issued and'are being sold
by certain; stockholders/ Z
■?<*/ //I
/: Details—See .issue of Jan. 31.
V * :
Offering—The prices^ to the public of
the preferred ;and common- stocks will be
filed by .amendment
/";// "r,Vr*. /
Underwriters—Glore^ Forgan & Co, heads

on

the.

demption price of
accrued dividends. :

filed

for

sale of
additional
shares of
common
stock to Niagara Hudson- power;
Corp., its parent, and treasury funds, will
be applied to the redemption on or about
April 25, 1946, of the outstanding 251,584
shares of 5%» series preferred at the re¬

from

!•

sold

.common

; v

proceeds,

•

proposed

be

OIL UORP/ on
registration statement; for

80,000 shares^41/4.%

record

.

Proceeds—The

Jans-23

ferred

Qffering-rTJhe price to the public will
be filed-by amendment.
" .//./
with

will

efforts of ^the;directors. And

preferred stock, $50 par, and

»

'

*

puhlic

the

^f.;;thf

West,

Boulevard,

to

.*
shares

ANDERSON-PRICHARD

CORP.

statement

the

ivice
Z

Underwriters—The
is/headed by Van

as

price.

•Underwriters—As

Childs,

filed

be

to

common

present common stockholders at

POWER

cumulative

/

daily

production; /; The "balance

of

Syracuse, New York;
•
Business—Public; Utility.

capacity of 150 tons of kraft paper, a por¬

gummed.; tape

YORK

registration

for sale

/Address

incurred

will

NEW

a

shares

furnished
fered

construction*-loan

a

debt to- be

filed

200,000

shortly,.
loan; however, has- yet been negotiated.

long-term

or

a

CENTRAL
has

..

a

• ••

shares of

price

Underwriters—The

employees

-

.

shared"

$5,50 per
'

J1

'

Strept,

Eagle
-

Offering—'The

a

shares

per share. *

; Address—820. East' Bald
.IiQBk^Haven,.Pa^i»
»
-

to

Co.,

&

AIRCRAFT

PIPER

are

Inc.

Chicago, heads the underwriting group.

1

.

being offered for sale to the pub.iic on behalf of the selling stockholders,
Walter
J.
Buettner
and
E,- O. - Bendix,
executors of the estate of Vincent Bendix,

800

Company,

Illinois

The

—

public

the

to

amendment,

price to be filed by

-

Proceeds—Of. the shares

'

right

densers.

$1.

par

are

Co.",

Electric

12, 1946, as successor to a
partnership
known - as
Dumont

Electric

Of the total
sold by stock¬

stock,

common

outstanding and"

Hubert

a

of

The

Jan.

on

limited

has filed

INC.,

CO.,

and

shares

cents.

-;./

Business

York

SATURDAY, MARCH 2

provide a portion of the funds required in
connection
with
the
proposed
exchange

&

.

Offering—The

MFG.

issued

Y.": /

N;

[\

' \

MARCH 5

10

by
Dumont
partnership.
>

Address—34

//;/:;'v.-Z//-;//-;

v

,

pany

.

-

-

&

51,000

value

par

sold

limited

>

notes

*

,

registration

a

Details—See

OKLAHOMA

are

being

-1

statement for 300,000
JAEGER MACHINE CO. on Feb. 11 filed
WEDNESDAY, MARCH 6
preferred stock, par $100,
a registration statement
for 33,153 shares
MAXSON
FOOD SYSTEMS, INC., haa
cumulative from April 1, 1946.
■■
of common stock, without par value.
filed a registration statement for 475,030
Details—See issue of Feb. 14.
Details—See issue of Feb. 14.
shares
of
50-cent
convertible
preferred
Offering—The company proposes to issue
Offering—The company is offering the
stock, without par value.
•
not more than 300,000 shares of new pre-*
new stock
to its common stockholders of
Address—460
West* 34th
Street,
New
ferred, par $100, at dividend rate of 4.20%,
record Feb. 21,
1946, at the rate of one
York, N. Y.
which will be offered in exchange to the
new share for each five
shares'held. ; Business—The
company
was
organized
holders of its outstanding 355,876 shares
Underwriters—The
underwriting group Nov.
7,
1945, to operate in a new -and
of preferred, consisting of 159,575 shares
is headed by McDonald & Co.,
and the relatively unexploited area of the food
$7 dividend stock, 170,456 shares $6 and
Ohio Company.
business, that of processing and/distribut¬
25,845 shares $5
preferred, all without
;.)y■■ ;■ ■;
.Z■ ../'.
ing
precooked r. frozen foods.
It
began
par value, on the basis of one share of
GRAYSQN-ROBINSON.
STORES,
INC. operations ;by acquiring the assets com¬
new preferred
and $10 in cash for each
prising the "fbrmer Maxson Food Systems
share of $7 preferred, and one
(formerly Grayson
share of
on
Feb. 11 filed a registration statement
new
division of the W. L. Maxson Corporation
preferred for each share of $6 and
as
of Jan. 2, 1946, in return for G09,750
for 50,000 shares of cumulative convertible
$5
preferred exchanged, plus cash divi¬
shares of its common .stock;. ' •*'•'>'•:•
5 /
preferred stock, without par value, and
dend
adjustments.
Any shares not ex¬
Offering—The price to the public will be
50,000 shares of common, $1 par.
changed will be redeemed at the redemp¬
filed" by; amendment.
v Details—See
issue of Feb. 14.
'The underwriter
tion prices of $115 for the $7 and $105
agrees, for a period of five days, to accept
Offering—The price to the public will
for the $6 and $5 preferred.
If more than
orders from stockholders of W. L, Maxson
*
1 , 0/ *,
"
300,000 shares of
old preferred are de¬ be filed by amendment.
Underwriters—Emanuel 2c Co. is named
Corp.-to purchase, at the public offering
posited for exchange, the company will
price, shares, of preferred at .the rate bf
allot shares up to 25 shares in full and
Underwriter.
^ ^ '
*
■
twd- shares^of preferred for each share of
pro
rate
shares deposited by a single
capital stock
of Maxson held by such
holder in excess of 25 shares.
The com¬
y
MONDAY, MARCH 4

K

SECURITIES CO.
on Feb. 7 filed a registration statement .for
20,392 shares of 4% cumulative convertible
preferred stock, par $100.
,;
Details—See issue of Feb. 14.
i
Offering—The company is
issuing to
the holders of its common stock rights to
20.392
shares
of
convertible
preferred
stock on the basis of one share for each
RAILWAY

shares

under¬

shares of 4.20%

its

y

statement for

stock,

common

statement for 240,000 shares

registration

a

of

.

V

(2-13-1946);.. ./

CLAROSTAT

or

on

registration

'

1

•

named principal
1. * '
*

-

/ TUESDAY,

•

writing group;

Feb: 8

ALABAMA POWER COMPANY on
filed

unsubscribed shares

The

amendment.

by

are

Beane

CITY OF

:

to

company

"

Carrick, Ltd., Tor¬

Registration Statement No. 2-6156. Form

,

holders.

/

of Feb. 7.
offering prices

Details-:—See issue

writer.

before March 11, 1946,
such stock
for
the new preferred stock.
The
underwriters will purchase
the new
preferred stock not issued under the ex¬
change offer and sell them to the public
at a price to be filed by amendment.
The
offering; price; of: the common * stock will
be filed by amendment.
Underwriters—Goldman,
Sachs
&
Co.
and
Lehman Brothers
head the under¬

230,000 shares of common stock, par
the total 116,887 are being Sold by

•

•

S-ll.

exchanging

;

"

ELECTRIC CORP. has filed

DUMONT

develop¬

and

exploration

is

Canada,

onto,

standing 4ft%. and 514%. cumulative pre¬
ferred stock are offered the opportunity of

MILLING MACHINE CO.
a registration statement for

J

work;
Z/Z/:
'
Underwriters—J. J.

of the under¬

names

-

SUNDAY, MARCH 10

United. States

share,

per

Proceeds—For

•

Offering—Holders of the company's out¬

WEDNESDAY, FEB. 27

on which the price to
filed by amendment
Underwriters—Reynolds & Co. heads the
common

public will be

pents

ment

Underwriters—The

•

,

investment.

Registration Statement No. 2-6161. Form
A-2, (2-18-1946);
: '

funds.:■

The
filed

be

'

writers will be filed by amendment.
parent, Standard Gas & Elec¬
its contemplated sale, at
MERCK & CO., INC., on Feb/8 filed, a
competitive bidding, of all of the common
registration statement for 120,000 shares
stock of Oklahoma owned by it/ZZ/////Z
of cumulative preferred, without par value,
Dealer-Manager—The company will make
and
118,000 shares of common, par $1.
an
agreement with a dealer-manager to
Of the common, 18,000 shares are being
form
and
manage
a
group
of security
sold by certain stockholders.
The dividend
dealers to obtain acceptances of the op¬
rate will be filed by amendment.
>
tional right.
1
Details—See issue of Feb.' 14.

and 10,000

of

will

rates

30

ik

makes

Co.,

tric

sold by certain stockholders
issuable on exercise of warrants.

shares

dividend

Proceeds—For

West

Offering—The offering price to the pub¬
lic

company's

WINDING CO. on Feb 4
filed ft registration statement for .119,400
shares of common stock, par $5 and 10^000
common
stock purchase warrants. /■ The
shares
registered include 70'®0,°n.s^a.1^
being sold by the company, 39,400 being

the

and

offering March 15; 1946.

_

Business—Mining.

state¬

vV ■/*.,
'
"
Details—See issue "of, Feb'. '14.Z//;/'
Offering—The bonds and preferred stock
will
be
sold
at
competitive bidding and
the offering price filed by amendment.
*.

through the sale at competitive
bidding of 140,000 additional shares
of
its common stock at the same time as the

UNIVERSAL

Feb. 7.
Offering—The offering includes

registration

a

: ///v Z

Street,

Adelaide

Offering—Approximate date *of proposed

stock,

common

; //."

Ontario.

Toronto,

and .100,000 shares of

1976,

of

shares

1,000,000

$!.>"''

pari:

WATER

BROOK

preferred stock, par $100.

cumulative
interest

filed

8

15,

by amendment.

provided

SATURDAY, FEB. 23 ;

for

the
*.

to

as

$23,500,000 first mortgage bonds;

for

March

due

accrued
made

Feb.

on

ment

preferred is $4,247,250, exclusive of
dividends, and the company has
a
commitment for a bank loan of

old

of

effective, un¬
at the discretion of the
become

course

and

Co.,

&

First Colony Corp'.

SCRANTON-SPRING

preferred will be required to take the- re¬
demption price of their shares in cash.
The redemption price of the 33,978 shares

grouped according to dates
registration statements will

ago,

on

Wain wright

Address— 1Q0

of old

(23.2%)

shares

33,978

remaining

whose
registration
filed less than twenty

Issues

of

List

statements were

C.

common,

aggregate of 112,500 shares (76.8%)
the old preferred.
The holders of the

an

NEW FILINGS

H.

who first deposit

old preferred

holders of

CABOT

YELLOWKNIFE

GOLD MINES,

Nov. 13 filed a registration state¬
1,000,000 shares of common stock,
par $1;
Z.
v
:
Z /
-. •/-..y .■'.■■■
Details—See issue of Nov. 22,. /
LTD.,"

on

ment for

Offering—The

price

per share.
Underwriters—John

cents

to the public is 30
:
■
/
William Larigs' is

1003

CWESGO

shares of $1

Details—See

Jan.

of

issue

Offering—The

3,

'

,

offering

public

35' cents, per. share.

>

for

R.

.'

Manning

Co.;

&

Jan.

■

'

:

25

43-750

filed

power

central
of

/V The shares, which are all-of the issued and
..outstanding shares of Colorado Central,
are owned by Crescent Public Service Co.

,

i

vpV"v Details—See

issue

of

Jan.

•/( Offering—The shares are to be offered
by Crescent for sale at competitive bid?
diftg

offering

the

and

will,

price

by amendment.
Underwriting—The

1

waiters

,

V

;

will

.

$20

stock

duced

will

CO.

of

sold

Phila¬

tp'

Details—See

"

bt£ filed by

Underwriters-—Merrill

'MANUFACTURING

CORP. on
Jan. 11 filed a registration statement for
5(j;000 shares of 60-cent cumulative convei-tlble preferred stock,- Series A, par $8,
arid 100,000 shares of common, par $1. The

t;

shares

common
i

upon
basis

conversion

share

••

for

reserved

are

issuance

preferred

'

the

(Offering---The

shares
to

*

of

shares

two

the

on
far

common

■*
issue of Jan.

Details—See

28

filed

I

50,000

issue

Offering—The
37.50

Eastern:
INC.

one

of

•

Eept

CORP. on

Oct.

price

share.

per

4.tjp

1

>

of

issue

Offering—The
York

will

shares

at the
so

17.

not

The

10..

to

the

of

obtainable

in

small

GOLD

company's4 outstanding

25 filed a reglstration statement for 75,000 shares of comEBALOY, INC.

on Jan.

stock, par $1.
,
DetailawSeri issue of Jan.

mon

'

r

.

Offering—The price to the public is $8

Chicago;

i

-

named principal

is

CORP.

a

stock* par $1.

Co.,

currency
(J.

" registration

of?common

Feb. 11

of record

stock

and

to

S.

V

tioiri

the

on

C seVen shares of
share.

'

<

>

one

common

U.

3195,000

U.

for

Dillon

.

17.

the securities registered,
if:-,: 181,694.15 shares of common of Federated
Offering—Of

to be offered

In exchange for common

^"•'stocks of Wm. ^Filfche's Sohs
Abraham
i;
straus, Inc., Bloomingdale Bros., Inc.,
arid

of

and

F.

Federated,

offered,

Federated
of

shares

.

Lazarus' & Co., subsidiaries
As to 94,035 shares to be

R.

is

,

Filene's

-

to

156,725

reoeive

stock,

common

at i a

CO,

1%

of

unit

per

Jan.

on

17

registered

filed

15/'

mately

shares

,

have

shares

Tihese

preemptive

the

warrants

10

company

each

cents

will

a

total

of

Underwriters—None.

&

CO.,

'

694.15

registered,

shares

116,315

shares

previously registered and became ef¬
fective Sept. 6, .1943, to be offeree! in
vtere

ekcheWge'.ro'r riomihon

■

rit'6ck4rpf' FiWhe's,

Abraham & Straus, Bloomingdalri and/.Laz-

subsidiaries of the registrant.
The
registrant is filing with the Commission a
pbst-effective amendment of former registratiori Statement, deregistering. the 116,315
shares with' the request that the- ameridment become effective simultaneously with
rfrus,

■

.

V

:

■

^rCSerif registration statement becom-

the

,

lrig
r

effective.'

;.

''jS

.".v.,.

•••

HIGGINS, INC.
tration

stock,

for {900,000

with

of

acquisition-of property.

.

28
registered 20,000
stock, $100 par value.

f.'

CORRUGATED

PAPER

filed a registration stateshares of cumulative cortvertibie
preferred stock
(par $25): and
lib,843 shares of common (par $10). Of

on Feb. 22
merit for 44,072

-

registered, 66,776 are reserved
of the preferred.
;
;"

the

common

for

conversion

.

f Details-r-See issue of Jan. 31.
.

'

Details—See issue of Jan.

the

and

share

of $9,900,000. Under¬

gross

a

writing
discounts
placed at 90 cents

WaS

incorporated

I./Higgins,

acting
associates, was

and

ization

of

44,072

per

shares

of

common

is

.

GABRIEL

c'cfc ori Jan. 28 filed

a

regis¬

Cumulative,

convertible

preferred

stock

(par $10).
Details—See

issue of Jan.

31.

Offering—Price to the public Is $10 per
Underwriters—Sills, Minton & CO., Inc.,

Chicago;

is

ROBERT

nkmed
GAIR

principal
CO.,

INC.,

underwriter
on

1946. Andrew

9,

on

behalf,of himself

active

in

the

organ¬

The statement
is not to bd con¬

company.
company,

fused

with Higgins Industries,
Inc., now
statutory liquidation.
It
is intended
Higgins, Inc., shall acquire from Higgins

iri

Industries

Inc.

its business,
plarit and property for approximately $4,238,000 in cash and 300,000 shares of com¬
mon

portion

a

of

stock, including the shares-subscribed

for 'by the incorporators, and 100,000
shares

rant

entitling

chase

100,000
(the shares of

rants

being

ation
also

of

the

shares
common

taken

holders

of

at

to pur¬
sfock

stock and the
an

aggregate

ifiled

a

registration
of

common

statement for
stock, par $1.




war¬

valu¬

Offering^fTher price

/•Underwriters

registration

Jari.

22

410,481

per

from

warrant

the

company

share,

at

warrants

with' total- net proceeds

placed

PRATT'S FRESH
on

Jan.

16

one

share

($1

the

shares

par),

2,000,000 shares authorized, of
1,200,000 will be outstanding and

200,000
all

warrants
to'
purchase common
eri which5 Will be Outstanding.

for

450,000

which

the

on

to

be

for

120,000"
certain

at

five

annual

an

from

Jari.' l',
compensation of not
years

less than $80,000 and $35,000',

*lus,

in

any

additional

each

case,

respectively,

the right to

compensation

share
based

in
on

bonus

or
profit sharing plans.
Underwriters—Van Alstyne, Noel
heads the underwriting, group, with

others

to

be

filed

by amendment.

and

Co.

names

the

due

Jan.

Jan.

to

to

two

"

.

a

}

the

Jan.

at

.

registration

■■ ■■■

■■)

statement

stock,

purchase

par

warrants

stock,

par

$1,
of

$1
foj

New

York,

derwriter.

(po

'

to

its present common
rate of one share of

it will subscribe to all

that

shares that

common

its

of

it

ad¬

is

entitled

of

ownership

106,050

in¬

filed, a

29

shares

stock,

common

U.

S.

continued
*

-

during

the year, the report discloses, for
a substantial increase
jn the num¬
ber of super markets owned and
operated by Luck? Stories, Inc., a
wholly owned subsidiary operating in northern California. The

,'
.

,

"

,

justifies the pro¬
posed- expansion, it is explained, i

one

of

warrants'

rendered
with

to

purchase

:S

.

To provide for

expansion of the
corporation's activities in 1946 the
have

in

recommended

-

an

the

capital stock to
2,500,000 shares from the present
1,471,012 shares, par $L Subject
to approval of stockholders it is
proposed that 468,552 of the addi*
tional shares be iSsped to Pacific
Coast

;

;

underwriters

&

the

$lv

par

2V2

shares

be

offered

and

will

to

by
the public at

price to be filed by amendment.

a-

,

Underwriters—White, Weld & Co. named
principal

?

underwriters.

VERITY

PORCUPINE

Jan. 16 filed

on

Co.,

HA exclusive

manufacture

■■

issue

Offering—The
offered

of

capital stock,

four

counties of California.

of

250,000

stockholders of

&

adelphia,
of

mission

to

ance

/

in the

near

traveling

r-,

--

,•

SITUATION WANTED 5?
&\\ §;y-.

Mark

advertising'

and

'
Statement

withdrawn

Feb.

20
RED

VIRGINIA

June .24 filed

a

shares

years*

LAKE MINES, LTD. or

registration Statement foj
of capital stock, par $1

(Canadian).

.

r

.

:

•

issue
of Aug.
2. ''
Offering—The Offering price 10 the pub¬

connection

change

experience

with

Unlisted

or

seeks

Ex¬

Stock

firm.

Details—See

lic

is

60 Va

United

cents

States

Canadian-

funds.

or

55

filed

&

E. Burnside

&

Park

shares

RADIATOR

CO.

of

company

common

is

also

stock,,

Jan.

on

registratiori statement

for

pari

29

100,000

$1.

registering -40,000

K21,

The

Financial

Commercial

Chronicle4,

25

Co

York.

a

Box

cent>

■

Underwriters—Willis
New

V

The

shares

,,

future to vote formal¬

;;

•

1946.

220,000

A meeting
Coast

ly on4 the proposed transfer.

being

are

underwriter's

•

Registration

-

o£r:'v^i:T-'

Pacific

Pa.,
who will receive a
com¬
30% and 5% additional allow¬

cover

,

southern

1421 Chestnut Street, Phil?

Co.,

expenses.

6,

shares

.

the

Mortgage Company will be held

'•■.■

at 50 cents per share.- •

Underwriters—The
Daniels

for

distribution

"Pepsi-Cola"' in

24.

Jan.

■

amount of

franchise

and

.

Details—See

1

'

,

MINES,

registration state¬

a

-

.

\

GOLD

ment for 250,000 sharies of
$1 per share.
i

/„'•

■

Mortgage Company in exChange for the latter's holdings of
all
the
issued
and
outstanding
stock of Pacific Affiliates, Inc., a
California' corporation1.
;

is

of

held.

purchased

stock

N. Y., is named principal un¬
,

each

for

shares

•

-

'

ing. stock of Pepsi-Cola Bottling.
Co. of Los- Angeles.
The. most
valuable
asset
of
the
Bottling
Company, according to the report,

7.

share at the rate

per

share

YOUNG

Johnson

$11

at

new

>

$1,040,752 and all of the outstand¬

has

company

,

secur¬

of

completed

were

■

The assets of Pacific Affiliates
on

registration statement for

of

securities

consist of cash in the

RADIATOR CORF,

STATES

sales

increase.

Plans

j

increase

shares

7

Unsubscribed

and
such

aggregate

an

connection

H.

stock

granted to
holders of its common stock rights to sub¬
scribe for not exceeding 92,344 shares of

named./

an aggregate of 30,000 common
purchase warrants, iri1 each case at
price of one cent- priri Wafriririfc share. The

$6 per share.
Underwriters—R.

statement

17.

.

markets5 amply
~

*
stock will be offered
Jan.

Details—See issue of Feb.

par,

FROZEN FOODS, INC.,
common

holder

New

^ ■;^

coriimom

of

the

at

virtue

92,344

corporation

purchase
individuals,
who

entitle

of

Government

corporate
of

volume of business done by these

prospectus.

F.\ Breeny

registration'

a

Issue

each

for

LTD.,

•

.

stock

warrants

additional

'

10%

s1

stock
in

this

George

shares

UNITED

in

3.

upon exercise
issue of Jan.
24.

services

150,000

under

and

Volume

directors

by

1971,

of

v

underwriters

Curb;

sold

filed

9

common

1,

rate

isuable

common5

by

all
shares of commori- stock which1 are tioi sub¬

and

financing,

at

&

to

made

is

Offering—The

Offering—The price to trie public is $6
The company has- agreed to

sell

the

on

shares, and it will also' purchase, for
vestment,
at the subscription
price,

will

$900,000

underwriter

common

list

i^ustrial/'chemicAls^^g^

s.

62,405

to

:

peri (share.-

1946, the company
employment'" dotttract's with
Andrew J. Higgins and Morris Gottesman,of

of

/Details—See

entered

period

a

120;000* stock

Under date of Jan. 29,
into

filed

shares

to

York

ditional

dut

public

$900,000.

at

underwriters—No

.

underwriter.

an

of Nov^ 29.

scribed for by other stockholders.
Underwriters—None.

Offering—The offering is to be

./

10
en¬

Dec

Dec. 20 filed

on

statement

issue of

common

held- at a price to
by amendment.- Air Reduction CO:-,
Inc., owns 106,050 shares out of a total
of 436,836 shares,
or approximately 24%
of the outstanding common. > Air Reduction

common

Brothers

.

Details—See

of

be filed

'Dec?

24.

the

providing for. interest at the
payable only from income.-

and

of

to

notes

shares

in

,

Lehman

income

unsecured

ities.

com¬

Jan.

new

art:

debentures,

Jan.

; PORTLAND MEADOWS

4

amend¬

Application has been

stockholders

3.

$3,040,000')'. The underwriters are

purchasing

1946,

—

•

registration

a

through

Offering—The new
by the company to

Glore, Forgan & Co;- head the underwriting
gfoupv{ ;/•:'V/'v'iv Public offering
indefinitely postporied.l :

titling holders to purchase 100.000 shares
of common
stock.
The capitriUfeation of
the" company Is as follows: Common stock,

a

of

will

,

CONDITIONING

filed

issue

Details—See

be- Tiled Jay ^amendment,

war¬

commott

.

Shares

Details^—See "issiiri

}
by

par).

CO., LTD., INC. Oii
registration statement for

a

public

improvement

Boston, Philadelphia, Pittsburgh,
Buffalo, Chicago, St. Louis, Cleve¬
land and San Francisco.
During
the past year the corporation par¬
ticipated in 69 underwritings of

3.

filed

AIR

500,000

Underwriter

&

$15,000,000 2'o-j)eaf 2%%
Feb; 1/1966-.

for

tration statment fof 120,000 shares of 5 %

^

the

poirits out the

stock

t

Jan.

on

Jan., 16 filed

-

Which

i

are*

share,, leaving. net

a

proceeds to the company of $10.10 a share
or* a
total
of $9,090,000. ; Higgins, inc.,

i

;

commissions

or

be

21

offered

stock

u.

$100' per share.

PHILIP MORRIS

Jan.

York, is named ttoderwriiter>

CORP.

on

of

300,000

of

New

list

:

Underwriting—No' Underwriting.

Offering—The prfed' to the public is $11
peri share, or

share. '
V '
^
i Underwriters—E. H. Rollins & Sons, Inc.,
heads the underwriting group.
$16.50

for

be

shares

Offering—Trie Offering price to the pub¬
lic is

Details—See issue of Feb. 7.

cents

price to the public on
44,072 shares of preferred is $25 per

Offering—The

to

h

on

CORP.

reg¬
shares of

presently issued and
outstanding and application has been made

»

securities

shares

a

Exchange 350,000 shares of its

mon

Meads

withdrawn

PALESTINE ECONOMIC

regis¬

a

shares

to be offered to
shares issued in con¬

$1,

par

public, and 300,000
nection

Jan. 29 filed

on

statement

jommon

t

WAYNE

FORT

Vf.! CO.

Nov.

has stated

■

:

Statement

for

substantial

;

.

the corporation. Blair & Co. now
maintain offices in
New York,.

preferred stock, par $25,
issue

corporation

Curb

by the corporation.

i*Registration
29, 1945.

principal underwrite}

New York.

The

ther

principal

28 filed

^

and Jonas C. Andersen, President,.
points out that 1945 witnessed fur¬

Offering—The price to the public is $4,50

statement

registration

each

$3.75

of

are named

on Dec.

STATES

on

to

are

:

BATTERY

CADMIUM

23. filed- a

shares

stock, par 10 cents, of which 150.000 shares

<

17.

&

or

pay¬

municipal

CORP.

The

underwriters group,

being offered

Underwriters—The
tf Allen

stock.

Bissell

on

for share

a

v

UNITED

shares of capital stock, par $10.
Dritaiis-rSee issrie of Nov. "29;
'
i
Offering—The price to the public is $10*
per share,

55,000.
*

the

shares,

The

statement

Details—See

of Jan.

issue

to

the

series,

sharie

a

Underwriting—To

'

selling stockholders.-

19

offering

cash
the company of $1.373/2 for

exchanged.

ment.

for 35,000

pay

such

1946, on

convertible

for

Nov.

on

20,

statement

shares of capital

other charges the balance of
profits for the year was $968,351, equivalent to 66$ a share,
against $686,403 or 47$ a share in
1944.
After deducting the divi¬
dend of $291,492 payable Feb. 15,
1946, there was added to surplus
$676,858; Net worth on Dec. 31,
1945,. was
$2,650,239
compared
with $1,924,058 at the end of 1944.
The report signed by Edward
D. Keil, Chairman of the Board,
net

b#

200,-

reserved

common

and

CO.

statement

$5

Offering—The price to the
filed
by amendment.;'-1

ameridmenti^^.^-v-";^

head

NICKEL

agreed

or

of

Underwriters—Laird,

rights,;
50,000

underwriter

shares

filed

Offering—The price to the public will be

to
The un¬
derwriter
will
receive
five-year
warrants to purchase common stock at ri
price to be filed by
amendment.
For
che

200,000

their

covers

stock,

:

dividend

be

Details—See

filed by
will

preferred

Details—See

,

issued and outstanding arid are

being sold by

days

by

The

statement

Blair & Co. report that after pro¬

31.

is

be

COK?

preemptive

waive

5%

the

the public will
The securities

of Jan.

= company

profits

were

vision for Federal and state taxes

its 46,977 shares of outstanding

per share.

are

issue

exchange

istration

«£

warrants.

123,460

registration

a

ended

year

in the previous
$1,023,097. One of the
investment; banking houses
with its stock publicity owned,.

15, 1946,
15, 1946.

Jan.

MANUFACTURING

filed

on

by amendment.

shares

price to
amendment.

by

value. ;
will

par

booked

year

underwriters.

Underwriters—To be supplied by amend¬

for

record

The First Boston Corp.

being

preferred

consolidated

few

exchange, together with
3,023 shares not being offered in exchange,
are
to be purchased by the underwriters.
The offering price to the public is $107
per share.
Underwriters—Smith, Barney & Co. and

the

the

31,1945, amounted to $1,644,159, the largest since 1936.
Net

,

series not taken in

NATIONALMALLINSONFABRICS
oil Jari, 9 filed a registration statement

'

■

24

by

share

Offering—The price to* the public will be

shares

24.

STALEY

to

ment

named.

270,000

Jan.

of

not

The

additional

filed

being offered initially f-or a period of
to
present
shareholders
under
rights at a price to be filed
amendment.
The holders of approxi¬

ire

■

.*

of

is

Details—See issue of Feb. 7.

as-

transportation

issue

right

ment.

underwriters

No

cents

against

stock, par $1.,

Details—See

of

Filene's
cbmmon.
As to 30,486 shares, Federated
1? to receive 15,243 shares of Abraham &
;
Straus common, at a price per unit of Va
•: of
ri* 8ha*tf of Abraham^ common: Ari to23,588
shares",
Federated
is to' ferieive
t- 31,451 shares of Bloomingdriler Commom at
a' price P®r unit of 1% shares of Bloomiflgdale common. Asv to 3,584 shares, Fed1
eriated is .to receive 3,259 shares of Lazarus
cbmmon .rib a* price peri uttib of 10/41 of a
share of Lazarus cdriwfloh."' Of the 151,-.
price

000

that^all the shares

event
—

Atlantic

of common

be

Details—See issue of Jan.

and

period

v

,

3.

basis, for the preferred plus

a

the

on

E.

Jan.

cumulative

case

PLAN CORF. OF AMERICA

amendment.

estimated

dealers,

by

i Offering—The

,,

'

i

Gulf

held at $12 per

t federated
department
stores,
v5 INC., on Jan. 10 filed a registration statement rioVeVing 151,894.15 shares Of Common
stock, no par value.

ate

sold

any

Underwriters

*

•

currency

currency-

are

sumlng in
sold.

rate

the company is
maximum, and
minimum, if all

by

the
offer

of

TEXTRON, INC.,

filed

10

mon,

each

Sons, Inc.,
Co.,. are- named

&

S.

S.

shares

The

stock, in each

during

A.

holders of

registration statement for
100,000 shares of preferred stock, series A,
with common stock purchase warrants at¬
tached, par $1, and 150,000 shares of com¬

are

Rights expire March 4.

Eastman,

principal jjnderwriters.,
,
"

share

Underwriters—E. H. Rollins &

arid

'

of

basis

raised

be

3300,000

the

the holders of certain options for subscrip■

to

share.

per

29

:

issue of Jan.

stockholders

underwritten.
MORRIS

being sold

are
.

,

and

re¬

revealed

Dec.

outstanding and
present stockholder..

a

Offering—The

to

report

annual

stockholders

its

Details—See

(no

stock,

common

a

for 50,000 shares of cumulative preference
stock, $3.75 series.
;

Colum¬

of

their
to

that the net booked profits of

;

Dec. 26 filed

on

leased

Co., Inc., 44 Wall Street,
City, investment bank¬

the

on

paid or payable thereon

Underwriters—The

ff any, at 32.5 cents U. S.
for resale at 50 cents

currency

of

common

all dividends

Jan.

"

CORF,

ers/in

NOel & Co.
principal

Underwriters—Kuhn, Loeb & Co^'V'^iW/

regis¬

offer

Blair &
New York

Offering—The price to the public will
filed by
amendment;
The statement
says
shares
purchased upon the initial
>ffering will carry the right to receive
the dividend of 25 cents per share which

offer.

offering

company
is
the public

purchase

by* Columbian

LTD.,

statement

share

per

proceeds

,

.

to

will

$6

is

300,000

named

are

and

before Feb.

the common stock

Columbian

Alstyne,

Torrey

I Details—See

share of common stock for each share

one

of

for

with

registration

a

such dealers,

to

Details—See issue of Jan. 24.
.
•
i Offering—The company is offering. 219,571 shares of its common stock to holder^

;

rants

itr
at 50 cents
United States currency peri share.
If the
company
accepts offers from dealers to
purchase the stock, the company will sell
stock

common

radio

&

the

in

to. the

be

31.

company

of

for

7,000 shares of $5.50

stock

by

headed

Blair & Co., Inc.,

re¬

and

by

New

corilihon

is

group

Alstyne, Noel & Co.

corporation

to

a

Van

subsidiaries

will

filed

24

being

Issued

.

of

shares

all holders of

&

SINCLAIR OIL

bian
Paper Co. one-half share of $5.50
cumulative preferred, Series B, with war¬

com-

for 600,000 shares' of common stock, $1
Canadian currency par value each.
Details—See issue of Jari. 10,
'
-

19,571 shares ; of cbiritnpKj

statement for)

v

filed

21

Jan.

on

o/K#
&

underwriter.

television

farnsworth

members

12

PORCUPINE MINES,

filed

4

ottering—The

31.

per share.^^^^
:
Underwriters — Webber-Simpson

■<"

There' are

CITY

Jan.

m

for

is
to

1951, 20,000 were issued
on
recapitalization
and
sold to underwriters at

1,

stockholders
are

public

warrants

the

to

40,000

registration statement for 150,000 shares of
common
stock
(no par).
The shares are

preferred stock, series B, with
purchase warrants attached

14,000

public

the

to

addition

In

Cohu

and

of

Inc.,

are

exercise

underwriters,

reg¬

public

Feb.

to

Of

stock at $8.25 per share

Underwriters—The

a

being offered

Underwriters—Van

31.

trie

to

Jan.

on

Offering—The

any

Underwriters—NOrie.

Jan.

Details—See issue of Jan.

lotf

Underwriters—No underwriting disoounts

move¬

of

interposition

stock.

■nnn

underwriter.

,

and

and commissions are being-paid.

the

for

stock

common

depress the market.
offering
constitutes

unduly
stock

propsed

53.9%

to

of

,

price

friends Interested in the cooperative

Without

on

shares

shares
the

upon

has been declared payable on Feb.

issue

CORP.

cumulative

the

of

98,000

100,000

price

common

10 cents per warrant share.

filed

29

by the underwriters,
the company is selling 25,000 shares direct.

'-1'

tration statement

the New York Curb Exchange

over

{'

MEAD

behalf

on

share.

per

convertible

Underwirters—Burr
&
Co.,
York, is principal underwriter.

Syndicate.
The secur¬
sold through "regular market

best

as

to

for

Offering—The price
be $7.50 per share.

Syndicate.

ment

CO.

.

stock, par $5.Of the total, 28,000
being sold by certain stock¬

j^ciails—See

stock is being
the public on the New

the public $25; per
share.
Securities are being sold by the
cooperative directly to- stockholders and

']

by

Co...

statement

cumulative

and

issuance

upon

v,v'.-,'4./'

Offering—The price
&

Jan.

on

issuance

Details—See issue of Feb. 7.

are

holders.

Inc.,

be

channels

5

Offering—Price

5%

statement

common

"

Jan.

Exchange

Gobel,

ities

Details—See issue of Jan.

.

shares

istration

At

common

sale

for
Curb

Adolf

shares

of 4%
cumulative
dividend non-voting
preferred stock, series A ($25 par).

'

-

filed

.

THE McBEE CO. on Jan. 24 filed a

10 filed a
registration statement for 412,899 shares
of common stock, par $1.
The shares are
Issued and outstanding and are being sold
on behalf of the Adolf Gobei,
Inc. Syndi-

named

20,000

registered

registration

a

cash

for

warrants.

Underwriters—Alison & Co. riamed priii-

if

Co.,

Finance

are

for

served

cipal underwriter.

-

<

>

55

ADOLF GOBEL, INC., on Jan.

offered

per share.

29

sale

:

to the' public will
$lo per share for the preferred and
per share for the common
stocks,

ote

s

the-public

to

'anta.,Ga.r"iri fiscal.agent,5

Detalls—See

cooperative wholesale,

Dec.

on

shares

com-

49,017

CO.

prior

sus¬

statement for 425,000 shares
stock, $1 par, of which 325,000
being
presently
offered
for

common

>

—;

Underwriters—General

f

principal underwriter.

|

of

preferred stock, par $10, and 50,000 shares
par $1.
1 :/
{
Details—See issue of Jan. 17.

stocky parr$5.

common

1 Details-^ee
,

17.

^Underwriters—Burr & Co., Inc.

I

prices

statement should be
pending before the SEC.

SHOE

registration'

.

w

Offering—The
per share.

purchase
to

REGAL

for

warrants.

$8.25

underwrite!

20,000

of common,

stateihenSSfof 200,-

registration

a

shares of

)00

.Offering—The offering price of the pre-

| ;

7.

MANUFACTURING

^

filed

14

Jan.

•

{ ' feired will be $10

of

June' 7.

registration

pended now

475,-

of

Details—See issue of Feb. 7.

Principal

—

reserved

common

exercise

of

shares

McALEER

public will1
Z- t

the
-

•

shares

50,000

will be
amendment. ;V'
■* ."fY; -JtW %
Underwriters—Eastman, Dillon

of preferred.

of

of

to

GENERAL SECURITIES

Pierce.

Fdnner & Beane and Butcher & Sherrerd.

DOYLE

price

purchase

Details—See isSue of Feb;

stockholders

by amendment;

to

of

i

shares

990,793

Stop Order Hearings—Stop order hear¬
ings to determine whether the effectiveness

Jan.

Offering—Tile price

Lynch,

•

certain

by

derwriting group;

31VI?^:''.':-^i,:^vr?;
the public will

price to
amendment.

16,590

79,590,'/of which

sold

filed

of Jan.,'

:V. ? Offering—The

.

eliminated

been

head

stock purchase war¬

common

May 31 filed

on

for

issue'of

Underwriters

of

$100 and

rants

Brothers

& SONS, INC., on

CO.

(par $1).

Bennett & Co., Inc., Dallas. Texas.

common,
par
$1,
80,000
cumulative
preferred,"series A,

of

OIL

statement
stock

common

Details—See

rqon.
The
company
is offering
shares'of preferred.b'

the
and

Underwriters—Burr & Co. headsrthe un¬

amendment.

issue

be

Offering—The
be

'

v.-

has

common,

the' SEC

with

of

7.

registration statement for

a

shares

par

63,000 shares will be sold by certain stock¬
holders to1 underwriters for public offering.

by present stockholders.. The dividend

rate will be filed by

filed

shares

BANK

RED

registration

par.

group.

LOWENSTEfN

000

employees and others at $14 per share and

delphia on Jan. 28 registered 20,000 shares
of preferred stock, par $100.
The shares
are issued
and outstanding and are being

•

filed

INC.,

statement

stock, $1

Lehman

—

underwriting

30

Oet

the number of common shares has been re¬

of the Underamendment. ... '.

COMMONWEALTH TITLE

the

M.

260,000 shares of

arid

preferred

.

by

Underwriters

i

registration statement for 60;01)9
cumulative
convertible
preferred;

par",

common

filed

<Sr- Co.

■par $'Lv "
'
By amendment

CO.,

registration

a

shares

Offering—The price to the public,Will be
by amendment. .
„■/!'.J•'

at

a

shares

names

filed

be

held

DISTILLING

filed

29

185,000

Details—See issue Of Feb.

share

one

GENERAL INSTRUMENT CORP. on
25 filed

filed

be

Freres

•

'

of

common

share.

on

statement for
stock, par $10.

common

basis

of

Jan.

for

of

.

registration

a

shares

co.

the

on

shares

LOGANSPORT
on

the

Rights expire Feb. 26.
Underwriters-rrThe
principal underwrit¬
ers are Ladenburg,/Thalmann & Co.,
and

Lazard

Colorado

11

offering

is

stockholders

common

three

each

$6.50- per

3iL'/

of Jan.

company

to

Feb.

record

U

^

Underwriters—W.

stock

new

Toronto, Ontario,. Canada.
4

Offering—The

t.

1 v

;

,

price

issue

Details—See

MINES; LTD., on Deo. 26 filed
statement
for
1,250,000
par value stock, non-aSsessable.

registration

a»
„

N.

Y.

Place,

New

York

8,

t004
"

Values

Trends in Public Utility

(Continued from page 963)
many utility companies are bound
and larger accumulated reserves.
to improve with growth of busi¬
Improvement in the basic qual¬
ness and relief from wartime tax¬
ity of utility securities has accom¬
C

ation-

panied a declining trend in gen¬
eral interest, rates and the .two
features
together have brought
the return on prime utility mort¬

shareholders

o m m o n

should;.; fare < better 'accordingly.
Also,'! expansion
programs
are

probably..going --to require some
new financing and within the near
gage bonds 'to the lowest figure
ever
attained.
Only
recently, future we may see the. resump¬
tion of the practice of offering at¬
such an issue was sold successful¬
tractive
subscription
rights
to
ly to the public on a 2.39% yield
common

basis.
Seekers

of

better

returns

jj J.
iSt;,

New

City,

York

charge

organization

son

Mutual

Bank for

Our

fruitful fields to
break-up of holding

Securities

earned

.

utility

at

Of

course,

a

there

charges of the same companies
were covered ten years ago.
v

never

for

these

qualify ;

as

ments

and

some

fluctuations in the
general market it seems safe to
venture the prediction
that the
trend in values of good
utility

stocks.
Today, as
before, the better grade of
be appropriately
buyers who have

invest¬

future.

foreseeable

the

purchased only bonds
preferred stocks but need to
keep up their - income. - Despite
their
greatly - enhanced quality,
these
stocks may still be pur¬

to

promises to* be upward iri

stocks

may

by

tx

values. • Such pur¬
indiscriminate
issues are over-valued.

Subject

•

common

considered

instances,

many

with Bond, Judge &

Co.

Corner.......

Markets—Walter

"'

'

>

"

heretofore

982

M. S. WI EN & Co.

Whyte

[ Michigan and Connecticut Sew
on

page

971.

;>■

yield

than

better

LITHOMAT

New York Bond Club
I

CORP.

Fleet Admiral Chester W. Nim-

itz, USN, will address a luncheon

rheeting of the Bond Club of New

'

>'

5 ■,

tel Biltmore,

are

obtainable

Amalgamated Sugar
Artkraft Mfg.

Com. & Pfd.

Milk Street, Boston 9,

Bendix

§ t Kut-Kwick

*.

Helicopter

,i Lear Inc.

Appliances [£
„

Teletype

Hubbard 4442

M | Kropp Forge..

Bendix Home

Hanover 2-7913

BS 328

'

We

Tool •

:.;r

-

|

,

;

I O'Snllivan- Robber ?

^

1
..

] Sheraton Corporation

expected in
because dividend in¬

are

creases

Investment Trust Issues

y-'/Y-,.-'''■

partnership

Greater N. Y. Industries

in

}

firm,
.

i

been active as an individual floor
broker. •
;vy

X

Kobbe, Gearhart & Company
V

'

INCORPORATED

Members

New

NASSAU

texephone

York

Security

Dealers

STREET,

Association

,

YORK

NEW

5

Enterprise 6015

t

S
'

-t..

,,

r-ABl MARKS & CO- INC,

Circular

-

Building,

.

.

''

.

Industries..

HorRsseSTrssier

New York 4, N.Y. ;
'

CHICAGO

.

"if**

Only

Trinity Place, New4 York 6, N. Y.

a

small issue of com¬

stock. ;

mon

Teletype: NY 1-375

Telephone:BOwling Green 9-7400

'

■

"■

T

.

***

Recent Price.
''

§|f|l|Eix;:T

111

V.;

>(

V'

•

a
;

.T'

•

.

»**♦
Write

New England Local Securities

V

.

ILES

.

-

ESTABLISHED 1914

74

NEW ENGLAND

and;

■'

?

request

Frozen Food ;

AFFILIATE: CARL MARKS 4 CO. Inc.

2-0050

on

Automobile,

FOREIGN SECURITIES

50 Broad Street

.

potential postwar bene!
fictary of the:
,
'
J

Rockwood & Company

1-971

HAnover

'v-

••

A

,

Teletype

'Telephone

1;':

J

|

MARKETS

>;

'

Tele. BOston 21

?

.

CPFCTflT I<STQ

10

24 FEDERAL STREET, BOSTON

;-r'.'(!,^ v.:',''' Established In 1922

Foreign Securities

■

C. Adams & Co.

Tel. HANcock 8715

bell teletype
new york 1-576

telephone

philadei.phia

,

REctor 2-3600

.

i:.;.!

"\ryyy,-

v

.

,

New Eng. Market

New England Unlisted Securities

x

45

NY

a

———•

I Frederick
1

March 1st. Mr. Eising has

on

'

Specialists in

& Co.,. 39 Broadway,
New York City, Exchange member

Earnings of

in sight.

to v

|

^Public Utility Stocks and Bonds
textile securities ; ; ;
Securities with

[Telecom Corporation
•;v i Wilcox-Gay Corporation

Kerngood

hot the highest to be

many cases

admitted

specialize in all

Insurance and Bank Stocks
/ Industrial Issues

|

.

|
J Majestic Radio & Television

-

1: /

Mass.

New Tork

j Ironrite Ironer Com. & Pfd.

vr

Baltimore Porcelain Steel

Globe Aircraft

be

'

Boston

j: Int'I Resist. 6% Pfd. & Com.

y

George J. Eising, member of the
New York Stock Exchange, will

from

■■

today, Feb. 21st.

Trading Markets in

.

Du Mont Laboratories

good industrial stocks. Fur¬
thermore,, the present return is

i

t

York, in the ballroom of the Ho¬

Clyde Porcelain Steel

the

HA. 2-8780

1-1397

Y.

V

31
...

Kerngood & Co. Partner

returns of from

N.

RALPH F. CARR & CO.

George J. Eising to Be

4% to 5 %, which rates are much

1919

Security Dealers Ass'n

Teletvoe

.

to

chased

Y.

N.

Exchange PI., N. Y. S

40

970;

page

on

Nimilz io Address

"

Buckeye Incubator

and

"B"

Cinema

999

Missouri

?v.

966

ESTABLISHED

formerly associated

chases must not be

attractive for ex¬

; prime

as

break-up

ed

ploration by both private and in¬
stitutional investors is that of util¬
ity

in

is,

stocks

company

Kaiser-Frazer

974

Sections

•

v

.-964

Securities......

curities

,

Mexican Corp.

??

spread between the market price
for these stocks and their indicat¬

;1; Utility Common Stocks
The field most

holding

ing

times as the fixed

as many

were

Finishing

Scophony, Ltd.

Members

Sparrow & Co, Formed
In Boston, Mass.

Packer

!

v

r

969
984

Says

preferred
preferred companies and the coming of op¬
erating company stocks,-previously
.stock does not have the debt obli¬
closely held, into the hands of the
gation characteristics of a bond
but, aside from that fact, it can be public for the first time. Experience
demonstrated that many utility has shown that stocks which come
to the market in this manner fol¬
BOSTON, MASS.—Sparrow &
preferred stocks of today have as¬
low a rather definite cycle. When Co? has been' formed' with offices
set and Earnings coverage com¬
the shares first appear, the name
paring favorably with that of
at 68 Devonshire Sstreet to en¬
s
unfamiliar.
Over a period of
bonds sold a few years ago..; To
time as the stocks become better gage in' "the investment" "business.
illustrate this point, it may be
Partners are Frederick Sparrow,
stated that despite the huge irw Recognized and well-placed, the
prices
almost invariably trend Frank M. Packer, and Albert E.
crease in Federal taxes, combined
fixed charges and preferred divi¬ higher,. Often it is possible to ob¬ Bolton,
Mr.
Sparrow and Mr.
dends of some companies are now tain an added profit by purchas¬
look

well

stocks.

Governments..,..

Salesman's

Tomorrow's

x—

mi

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

Utility Securities

Estate

Real

City

U. S.

976

Funds..,....;.....!...;,.... 980

on

•

968

Literature

Railroad Securities...

than ten years.

Rhodesian Selection
Gaumont-British "A"

Recom¬

Reporter's Report;.962

Public

statistical de¬

National

the

of

more

and

Our Reporter

Morgan Stanley & Co. and prior

partment

General Panel Units

978

News and Notes...

NSTA Notes.;....

Mr. William¬

to that was with the

New England Public Service

page

Stocks?-,.;..

Investment

mendations

Municipal

recently associated with

was

■

Securities'.!.....,'.. 986

Dealer-Broker

of the statistical and tre¬

search department.

Insurance-

and

Canadian

in

is

and

'

y*;j'.v

Calendar of New Security Flotations. 1002

announces
that Gordon Williamson has join-

eel; the

"j,
Bank

Wall

G. White-&.Co., Inc., 37

the

watch is the

•

Wilk J. G. While t Co.

stockholders.

of

One

may

INDEX

Gordon Williamson Is

\

call for

or

descriptive

analysis•
Specializing in Unlisted Securities

v-l.;£« l*'...

V.;;•

,

>r

. . .

j

~

.*

'.?!■

WALTER J. CONNOLLY & CO.
INCORPORATED

24 FEDERAL STREET,
Telephone Hubbard 3790

v

il '' 2 ''

•

BANK

—

>:'";'v:

INSURANCE

//

BOSTON 10, MASS.

X'

.

1923

■

PUBLIC UTILITY

—

INDUSTRIAL

—

REAL ESTATE

148
Tel.

Bell System Teletype BS-128

N.

State

St.,

CAP. 0425
Y.

Boston 9, Mas#.

:

Telephone

Teletype .BS 259

S

HAnover

2-7914

LUMBER & TIMBER

BONDS, PREFERRED AND COMMON
San-Nap-Pak

a- r«. f

Sunshine Consolidated
:

sj

■

ACTIVE MARKETS
New Jersey

$

Pressurelube, Inc.

„■

Radiator, Pfd.

Susquehanna
BOUGHT

Realty Co.

Automatic Signal Co.

Reiter-Foster Oil

Broadway

New York 5

Telephone COrtlandt 7-0744
Bell Teletype NY

1-886




—

QUOTED

Mills

Amos Treat & Co.
Wall St.

New York 5,

Empire

Chicago 4

Steel Corp.

RANdolph 3736
WESTERN UNION

40
■

SOLD

208 So. La Salie St.,

ByrndunCorp.
120

—

REMER, MITCHELL S REITZEL, INC.

Van Dorn Iron Works

W. T. BONN & CO.

STOCKS

Central Iron & Steel

i -A

U. S.

^

N. Y.

TELEPRINTER
"WUX"

BELL SYSTEM TELETYPE
CG-989

Hill, Thompson & Co., Inc.
:

Markets and Situations
120 Broadway,

for Dealers

New York S

.

BOwling Green 9-4613

Tel. REctor 2-2O20

T«l« NV