Full text of Commercial and Financial Chronicle : February 22, 1945, Vol. 161, No. 4362, Section 1

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^ ^
Final

Edition-'

Beg.

Volume

New York, N; Y.,

Number 4362

161

Director, Bureau of Business Research,

CHICAGO,

ILL.—Charles Fos-<
Glore, partner in Glore, For-^
& Co., investment bankers,

has

been

elected

Stewart-

director

•

...

Warner Cor¬

Gardiner
d

m o n

re¬

announced

signed,
J

$300 Billions Than When It Was $40 Billions and States That the
Present Indifference Is Sadly Misplaced.
Though Admitting That
Is

Because the Debt Is Domestic in Character

Five

one-f

Stewart-

CorCharles F. Glore

the

point

reached

recently elected praesident and a
director of the Tennessee Gas and

Company,

Houston,

headquarters in Houston.
The Stewart-Warner directorate

(Continued

after

page

831)

erely.an
indifferent

reader

re¬

passed

New York Security

mark.

Anniversary Dinner
on

less

Pages 835,

Index

by Mr. Martin in

Forum
Ky.
Mr.

the University of Kentucky

Features

Regular

address

the

whether

Lexington,

series,

Martin

was

the

former

Chairman of

Tax

Commission.

Kentucky

He has been President of the

856.

Research

Foundation,

and

present Vice-President of

Tax

Association.

Underwriters

address
the

Boston

Young

Mr.

Stock

time

hand the

s^nse

com¬

?full'

Distributors

for

ture
in

and hold

our

this

and

other

London

(Continued

CO.

R. H. Johnson & Co.
Established

and

unity it may help us to work to¬
gether
better
when
the
great
*An address by

fore the Canadian

Mr. Burgess be¬

Club, Montreal,

Canada, February 19, 1945.
Harold Young

(Continued

page

846)

page

State and

839)

64 Wall Street, New

HUGH

Brokerage

Bonds

Service

Albany
Buffalo
Pittsburgh
Williamsport

Troy

Cleveland

Syracuse
Dallas

INCORPORATED

WALL ST.

NEW YORK

634 SO. SPRING ST.

LOS ANGELES 14

THE CHASE

Hardy & Co.
Members New York Stock Exchange

York Curb Exchange

New York 4

30 Broad St.
rel.

DIgby 4-7800

NATIONAL BANK
OF

THE

CITY OF NEW YORK

V Tele. NY 1-733

New

Detroit Harvester Co.

ELECTRONICS
RAILS

Bond Department

and Dealers

Members New

BOND
■

REQUEST

W/LONG WcOMPANY

York 5

PHILADELPHIA

BOSTON

BROKERS

Bond

Whelesale'VisMbutors

1927

INVESTMENT SECURITIES

Teletype NY 1-210

Chicago

of comradeship

for Banks, Brokers

Rep.

25 Broad St., New York 4, N.
HAnover 2-0600

MANHATTAN

PROSPECTUS ON

Exchanges

Geneva

W. R. Burgess

hearts

moment

before the Boston Securities Traders Association
Boston, Feb. IS, 1945.
Mr. Young is a
with Bear, Stearns & Co., member of the New

BONDFUND

Stock Exchange

Members New York

purpose.

we can cap¬

VICTORY

Hirsch & Co.
LILIENTHAL &

h ip,—

Municipal
Buy War Bonds

HIRSCH,

struggle for
vital

Dealers

Successors

that

Exchange,

utility analyst associated
York Stock Exchange.
public

(Continued on page 852)

friends at this

feeling of
unity
in the

"Opportunities in Utility Securities." I have been
asked to discuss some specific situations which
have particular promise, and this I will gladly do.
However, I think you can better see the picture
*An

the

thoughts turn to any study of the Invest¬
ments which are going to be attractive and desir¬
able over the years ahead, public utility securi¬
ties certainly deserve a full measure of consid¬
eration.
Accordingly, I have taken as my topic

held

C anadi

rade

Technological Progress as Well as
Tax Relief Measures as Basis for Higher Profits.
Calls Attention to Specific Situations Offering In¬
vestment Opportunities.

the Tax

Institute and of the National Tax

the

chance to visit

might experi¬
ence
at .first

concern

*An

836, 837 and 838

page

Prof. J. W. Martin

Today, there
appears to be

wel¬

have

comed

and Points to

the

the $40 billion

Dealers Association

—

the Loss Will Be More Than Offset
by Increasing and More Profitable Domestic De¬
mands. Sees No Reconversion Problem for Utilities

Ameri¬

nation

period of years I have spent many months in Canada,
been here before when our two peoples were war
~<£partners, - as
they are today
in
this
great
stru g gle. a I

never

After the War,

gloom
which
enveloped
as

and That Though
Revenues From Industrial Customers Will Decline

call the air of

many

Over

but I have

Record of Growth and Progress

pap er

Groups

Expanding Bureaucracy, Maintains That Big Government
Controls Handicaps Small Business, and Lays Down Four Proposals
for Preserving Democracy.
an

Utility Analyst Holds Public Utility Securities Are Going to Be Attractive
and Desirable During the Years Ahead.
Contends Utility Industry Has
Gained the. Confidence of Investors Due to Its

of Democ¬

Democracy in Subversive Political Changes, Selfish Pressure

and in

■;Y;By HAROLD' H. YOUNG*

news

Opportunities In Utility Securities

War.

need

cans

Photos

should have risen to a point

York

Kinship of

racy," Urges That the Instrument^ for Preserving Peace Be Simple
and Not so Elaborate, Such as in the Case of Bretton Woods, or They
Will Break Down From the Weight of Their Machinery.
Sees Dangers

——•—

first

One

Mr. Burgess, After Pointing Out the Common Interests and
the United States and Canada in the "Concept and Practice

good citizens of the United States were

many

<$>-

highest

World

Chicago Corporation sub¬
sidiary, and has established his

ago

President, American Bankers Association
Vice-Chairman of the Board, the National City Bank of New

o u r

the

; poration since
1936. t He was

Texas,

years

above

Transmission

Sensible Adaptation of War Taxation

than

Chicago Cor¬
poration,
has
ibeen
a
di¬

Sees

Primary
Is Pro¬

Conditions.

greatly concerned that the national debt

■«'

Warner

and Higher Income Levels Are Assured; If There

by (Government.

to Peacetime

the

rector

It Is Less Burdensome Than

moted

dent and a di¬

Our Democracy!

University of Kentucky

Disposition Among the People to Provide Their Own
Protection Against Poverty, and If Private Economic Activity

president.
Mr. Symonds,
v ice-presi¬
rector

Let Us Preserve

Expert Points Out That There Is Less Concern Today When Debt

Tax

Copy

By W. RANDOLPH BURGESS*

Greater Productivity

S.
Knowlson,
a

Price 60 Cents

Thursday, February 22, 1945

Abroad, He Holds It Creates a Problem of the Proper Distri¬
bution of the Burden.
Says That Debt Burden Can Be Carried If

Sy,

Office

Pat.

If Held

vice

poration,

Sections-Section

YEARS

By JAMES W. MARTIN*

Stewart-Warner
gan

Business and the Public Debt

Glore Director of

ter

OVER 100

ESTABLISHED

International

England;

Public Service Co.

Detrola Corp.
PREFERREDS

INDUSTRIALS
Philip Carey Mfg.

Bull, Holden & C2
MEMBERS NEW YORK

Kobbe, Gearhart & Co.
INCORPORATED

STOCK EXCHANGE

Members N.

14 Wall St., new

York 5. n. y.

TELEPHONE-RECTOR 2-6300

Security Dealers Ass'n

New York 5

45 Nassau Street
Tel. REctor 2-3600

Teletype N. Y. 1-676

Philadelphia Telephone:

Enterprise 6016

HART SMITH & CO.
Reynolds & Co.
Members New York Stock Exchange

120 Broadway,

Telephone:
Bell

New York 5, H. Y.

REctor 2-7400

Teletype

1-635

ira haupt & co.

Members
New

York

52 WILLIAM ST., N. Y.

BeU

New York

Dealers -Assn.

Security
S

HAnover 2-0988

Teletype NY 1-395
Montreal

Toronto

Members of

Principal Exchangee

111 Broadway, N.
REctor 2-3100

Y. 6

Teletype NY 1-1920

Trading Markets in: ZZZZ2

ZIZ

BROWN COMPANY, Common &

Schild

Eitingon

Federal Screw

CYANAMID
NORANDA MINES

Stock & Rights
'

KING & KING
Members

Members N. Y. Stock Exchange

Dealers Ass'n
Securities Dealers, Inc.

Ass'n

Nat'l

40 Exchange

v,;\ggg

:[■

NEW YORK 6, N. Y.
Teletype NY 1-672

Telephone BArclay 7-0100

Exchange

120 BROADWAY,
Tel.

REctor

NEW YORK

Members New York Stock Exchange

2-7815

25 Broad St.,

Common

4's

Stock

1952

That Jobs Can Be Permanently

Public Spending and That Purchasing Power Is In¬
by "Giving People Plenty of Money."
Holds GovernmentCreated Jobs Discourage Private Industry, and That the Real Remedy

in^investment

creased
•

Direct wires to

..ST.
PAUL,
MINN. — Mannheimer-Egan, Inc.,
has been
Yorrned with offices in the First
National Bank; Building, to deal

Created Through

Washington Props.
7's,

Executive Attacks Theory

Insurance

Hotel, Common

Mayflower

Atlas

Princi¬

securities.

Stock Exchange
Broadway, N. Y. 5

Members Baltimore
120

WOrth 2-4230

Y. 1-1227

Teletype N.

gg?.

Belief

pals were
formerly-of .-Mannheimer-Caldwell, Inc., in St. Paul.

of the American People Will Solve
Realistically the Difficulties That Lie Before Them.

ton

high level of prosperity after the war, it is general¬

tCo;

Edward A. Parcel!

Members New York Stock Exchange
Memoers New York Curb Exchange

WHitehall 4-8120

65 Broadway
Bell

Trust;Qfficers,.,.

must be a sufficient number of jobs to provide
v.'
. ■1
•.,;; ; <$>—
-

employment

gg^gg:ggggg;g

gg ■. gg'; ggv;' 7 % pfd.

James

Gaffney and Francis A. Whar¬
wer6
appointed
Assistant

ly admitted that there

Wanted

Offerings

Co.

Trust

City

Committee

Farmers

Bank

Central States Pow; & Lt.

of the

regular meeting

Executive

Operate, the Long-Term Wisdom

If there is to be a

the

Plywood

Foundation Co.

;

Appoints Gaffney, Wharton

Factors Allowed to

With Favorable 'Reconversion

That,

Ala.

branch offices

Preferred

•;

Is the Investment of Capital in New as Well as the
Expansion of Existing Businesses. [Sees Private Enterprise Endangered City Bank Farmers Trust
If Government Controls Are Intensified, hut Sounds an Optimistic Note

MitclielU Company

our

;g W. L Maxson g

for Unemployment

Bell

NY 1-1557

New Orleans, La.-Birmingham,

Opens in SI. Paul

CLAUDE L. BENNER

Vice-President, Continental American Life Insurance Co*

Trecker.

Manisheimer-Egan, Inc.

Are Created

How Jobs

International Elevating
Kearney &

New York 4, N. Y.

HAnover 2-0700

Sou.

Des Moines &

Fort Dodge,

Steiner, Rouse & Co.

York Curb Exchange

New

Quoted

—

Members'tg

■

York Stock

New

Sold

—-

Analysis oil Request

Tvfc TTonnell & Co.

TELETYPE NY 1-423

BELIi

Bought

Bought—Sold—Quoted.

and Other Principal Exchanges

BROADWAY

115

HA 2-2772

PI., N.Y. 5

Security

York

Securities Dep't.

*;?;''P:.

v"/••;

Goodbody & Co.

Established 1920

New

Canadian

& C0.r INC.

5% Preference

MINNESOTA & ONTARIO'PAPER

Works

P. R. MALUM

AMERICAN

Preferred

BULOLO GOLD DREDGING

Com.

U. S. Sugar

Markets in U. S. FUNDS for

We Maintain Active

Lanova Corp.

Thursday, February 22, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

826

System Teletype NY 1-1919

for those who

Roose¬

dent

Street, New York
Telephone COrtlandt 7-4<H0
Bell System Teletype NY 1-1548

31 Nassau

means

sixty

million

jobs.

that

said

Corporation

Common

| i f t•

Douglas Shoe

r*reterred
Limestone

Indiana

1952

6s,

million

jobs

would

pro-.

vide

General Finance

Corp.

Warrants

Service
Preferred

Common

Struthers Wells

N. G. BRUNS &

20 Pine

Street, New

Telephone:

York 5

WHitehall 3-1223

o/.i»

(/»).

whatever

i.inil

factories.
be the cor¬

may

to provide what is
called full employ¬
ment, one thing is certain, namely,
there is no agreement as to how
rect

figure

commonly

jobs are to be provided. The
for Economic Devel¬

these

Committee

opment takes the position

Airplane IVIfg. &

Supply

properly revised
governmental controls are
removed as soon as possible, pri¬
vate industry can furnish them.
the tax laws are

and

Boston
3%'s,

Terminal

'47, registered

cal New Dealers

Publications
&

Common

Preferred

Marion Steam Shovel,

Pfd.

BreeTietmiGompanu
Members

Security Dealers Assn.

St., N. Y. 5
Teletypes—NY

37 Wall
Bell

the more radi¬
scoff at this idea.

On the other hand,

Foundation Co.

Macfadden

that if

Hanover 2-4850
1-1126 & 1127

They state that in order to pro¬
vide the
"necessary purchasing
power
come

to keep a high national in¬
and full employment, the

government is going to be com¬
pelled to run a large deficit and
war
time wages must be main¬
tained and even increased."
If
*

by Mr. Benner
the
Twenty-ninth

address

delivered

Banquet of the Real Es¬
Board of Baltimore, Balti¬

Annual
tate

Eastern Gas & Fuel

y20/0

Md., Feb. 3, 1945.
(Continued on page 850)

more,

& 6% Pfds.

Preferred

dent's

countries.
the

one

purposes

promote

maintain

arrangements
and

rec¬

competitive

change depreciation.
But

Congress

pro¬

Mr.

posals.
Smith's

re¬

marks

were
Frederick

follows:

After delin-

eating

Smith

v:-r

ggg,--?■

proposal for

Woods

tional

which he saysg

all

know,

.-.

...

proposed world economy must
built on more than foreign
Exchange
rates
must be stabilized, and the chan¬
nels
of
trade
opened
up
fund
to

preserve

shall

Analysis

country

debasing its

because

of "the

;■

F. H. KoMer & Co., inc.
Members

111

proposing the change.

changing the par value of their

financial
stability

say

exchange rates
different moneys.

Dealers Ass'n

New York 6, N. Y.
NY 1-1026

Macfadden

Publications, Inc.
Debenture 6's, '68

$1.50 Pfd. & Com.

;ggjgg':ggi;g;

clearly false to

that the Bretton Woods pro¬

posal for an international mone(Continued on page 844)-

•

g.gg';

C. E. de Willers & Co.
Members New

therefore

Security

Broadway,

BArclay 7-0570

domes¬

currencies.

request

policies of

all countries to do pre¬
they pleased with respect

not

satisfied

domestic, social, or polit¬

cisely

and order in the
between

policies provide the only pos¬
sible reasons for any country to
debase
its
currency,
the
field
would of necessity be left wide
open

interesting low priced
situation

ical

however, that j

Since

investment.

the

Common Stock

Active Trading Market

country

the member

institution

CROSS CO.

any

social or political

tic,

" ,gg

throughout the world.

currency

interna¬

...

member

proposal in respect of

to the fund

provide

object

bank, the President refers

YORK 5

proposal not only fail0

the

Fund

in broad general terms the
the Bretton

investment features of

NEW

HAnover 2-9470

1-1140

ex¬

prohibition against
debasing its
currency
but actually
provides
that it shall be free to go as far
as it wishes in this respect.-'Sec¬
tion 5 (f)
of Article IV of the
agreement provides" that if the

Bretton

Woods

trm

of the

members,

among

avoid

that

enact into law

York Curb Exchange

ST.

exchange stability
orderly exchange

ommend ivag

the

specisl

WALL

fund is stated to be—

Congress on
Feb.

New

Members
64

York Security Dealers Assn.

120 Broadway, N. Y.

5, N. Y*

Teletype NY 1-2361

} REctor 2-7634

Light & Power

I 6%, 6 y2 % & 7% Pfds.
Kings County Lighting
5%

Pfds.

Empire District Electric
Common

suggest

that

dealers

send for our detailed report on

strong

and

unit

Owns
Weber

reconversion

the

trade name
&

chain.

Excellent

WATERWORKS

Engineering

SECURITIES

Company

Circular on Request

Bonds & Stocks

WM. J. MERICKA 6- Co.

post¬

possibilities.

Troster,Currie & Summers
Members

Simons, Linburn & Co.
I

Common

WHitehall 4-4970
Teletype NY 1-609

"Steln-Bloch"

Heilbronner

problem.

Wellman

men's_ clothing

Southwestern Public Service

Fl\E ST., N. Y. 5

INCORPORATED
war

G.A.Saxton&Co.,Inc

FASHION PARK, Inc.
field.

continue

Iowa Electric

that

Presi¬

message

Frank C.Masterson & Co.

member

mis¬
facts"

the

New. York Curb Exchange

Green Mountain Power

•

what

"grossly

past sixty-five, and
boys under sixteen now working,
who would be
better off some
people

termed

stated

But

CO.

prosperity.

place else than in our

Preferred

Common

Units

is noth¬

the first place there

whatever
in
the
Bretton
Woods proposal which really pro¬
vides for stabilizing the currencies
ing

atten¬

tion
he

level

fair

Claude L. Bennerf

After all, there are many women,
old

National

called

Feb.

t o'

Dealt in

Teletype NY

floor,

House

that

(Rep.-Qhio), a member of
and Currency, in a speech on the

Smith

Frederick

Congressman

the House Committee on Banking

fifty- five

Conv. Prior

Tudor City

Smith of Ohio Refutes: Statement' in the President's
Message. Also Takes Exception to President's Statement That the Plan
"Does Not Create a Single Money for the World."

will

believe

,v g.

Bowser, Inc., Common

sufficient.

Preferreds

Congressman

somewhat less
number

(Va.)

Debentures

Sl/g%

Common

Stabilization

have

Others

My own stud¬
ies lead me to

W. L.

*5%

that, this

York Curb Exchange

; Byrnaun

Central States Elec.

Not Provide

said

has

velt
,

Vanderhoef & Robinson.
Members New

Says Bretton Woods Proposals Do

willing to
work.
Presi-

Collender Co.
$5 Preferred

and

able

are

Brunswick Balke

Members New York Stock Exchange

25 Broad St., New
HAnover 2-0600

York 4, N. Y.
Tel*. NY 1-210

Security Dealers

Members Cleveland
Union

Ass'n

Commerce

Bldg., Cleveland

Trinity Place, N. Y. 6

Teletype
Private

Wires

Detroit

Buffalo

Pittsburgh

Direct

St. Louis
i

—

QUOTED

Broadway, New York 6
WHitehall

Cleveland

SOLD

^(dc/IU

HA 2-2400

NY 1-376-377"

—

Telephone MAin 8500
74

BOUGHT

Stock Exchange

4-3640

Private Wire to

Cleveland

•

MEMBERS NEW

One

Wall

YORK STOCK

Street,

New

EXCHANGE

York 5. N. Y.

Volume

161

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4362

827

The COMMERCIAL and

Oxford Paper

•

Publishers

25 Park

Conestoga Trans.

}

Place, New York 8

I /

Public Utility

;

Sp.•encer Traslc

■:

every
;

STRAUSS BROS.
32

Broadway

NEW YORK 4

Telephone HAnover 2-4300

week

CHICAGO 4

and every Monday

DIgby 4-4640

•..Harrison 2075
,

Other

Teletype CO 129

135

Offices:

Salle

St.,

Chicago 3, 111. (Telephone: State 0613);
I Drapers' Gardens, London, E. C.,'Eng¬
,

Securities

Department

Reentered
ruary

Specializes in.

York,

PRUDENCE BONDS
us

William

Dana Company

second-class matter Feb¬

25,1942, at the "post office at New
N. Y„ under the Act of March

Subscriptions 1n United States- and
Possessions, $26.00 per year; in Dominion
of Canada, $27.50 per year; South and
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CERTIFICATES

Call

by
as

3, 1879.

TITLE COMPANY

for quotations

Other Publications

-^yyw-y-yy

Bank and Quotation Record—:Mth.

$20 yt.
MonthlyEarnings Record—Mth... $20 yr.

Newburger, Loeb & Co
140 Will St, N.Y.

NOTE—On account of the fluctuations
in the rate of

i| Members Neu> York Stock Exchange I
I

Bell Teletype XY .1-2033

Interstate Commerce Hears

Gold

long¬

and its credits.
nothing else has been accept¬
in settling obligations due
foreign countries except gold or
its equivalent.
This confidence in;
gold and the demands for it show
no signs of diminishing in.spite Of
the" "great increase in the * world's
supply of- monetary gold.
The
reason for this demand for gold is
its fine stable qualities,
While the

Also

able

Bill to

left
s

value.

after
has
the gold
if d a r d

because of in¬

Remove Municipals From All Regulatory Action of the SEC. Chairman
ability to meet
Purcell of SEC Contends That Present Law Permits Regulation of Sec¬ its credit ob¬

and Disclosed That Commission Is ligations in
Acknowledged That Measure Under money con¬
vertible
into
by SEC, Would Have Had Deleterious gold;
But
sooner or later
Municipals.

WASHINGTON, D* C., Feb. 21.—The two-day hearings of the
jKouse Committee on Interstate and Foreign Commerce oh the Boren
concluded Feb. 21 with*>

the

testimony of SEC

Chairman

The SEC Chairman added that

The Boren bill, HR 693—which
is the same as HR 1502 of the last

too

Congress—would by specific stat¬
utory provision make clear the
intent of Congress that State and
municipal financing 4 should not
be regulated or controlled by the
Federal Government, directly or
indirectly.
!
X ; In this week's hearings the is-;
sue was clearly presented by both
Sides. The arguments in favor of
the Boren bill" were impressively
presented by witnesses represent¬
ing brokers, dealers apd invests
jors in State and municipal securi¬
ties. The Investment Bankers As¬
sociation
of America
and the
.

American

Bar

participated.

Association

also

The hearings were

the committee
sympathy for
the dealers' viewpoint was openly
'Well

attended by

and

considerable

expressed by various members.

hopes
long

work out

that sometime before
the
Commission will
some

method of provid¬

ing the municipal bond investor
with

all

the

information

the

can

member

pally circulated by the SEC for;
comment
in August, 1942, has
been scrapped and that the SEC
has long been working on an al¬
ternative proposal, which, when
perfected,' wBl be submitted to
those interested for comment.
Mr. Purcell disclosed that the
reactions to the
original "pro¬
posed r4ule" evoked considerable
doubt as to its workability and
soundness, and that a fresh ap¬
proach to the problem was under¬
taken by the Commission.
Why
the SEC has. waited until now to
reveal this fact Mr. Purcell did
not -disclose,
although he was
asked by Congressman O'Hara to
~

do so.

returned

In.

Foundation Co,
Moxie Co.

Wellman

gold

the Boren

bill,

the SEC should confer with par¬
ties
interested
in
the
subject.

Speaking also
Hotise

as a member of the
Post-War Committee, Mr.

Circulars

J.F.Reilly&Co.
;

REctor 2-5288
Bell System Teletype, JfY 1-248#

inconvertible
currency and all the variety of
currencies surrounded by the deep
secrets of government controlled
magic have a history of instabil(Continued on page 853)

Private

agreement with the Wolverton.
•suggestion, v X: ■ ■■
;
i
Under
committee questioning

tribution of municipal securities,"
but
he
denied
that
any
rule

Mr.

several

Los

Angeles

M. A. Hanna Co.
Engineering Field Report
on

Request

Bought

—

Sold

'■

HtttZVG

ftf.S

Memberi fley York Security Dealers
170 Broadway "
Bell System

Asa'n

• COrtlandf 7-6190
Teletype NY 1-84

feel

pursuing

this occasion.

This dinner

marks the 19th. anniversary

of the
course in the
New York Security Dealers As¬
C. E. Unterberg
sociation
and we are happy to
enforcement
'i
X
of statutes en¬ have With us so representative a
trusted to them, will not be sur¬ group of men - from anaphases of
prised to hear that we in our AsiJ X*■ (Continued oh page 842)

occasion

PANAMA COCA-COLA

Dividend paid
X::^
1944

"\y

FABRICS
XV;

•

DUNNE & CO.
Members New York Security Dealers int

Broad St., New York 4, N. Y.

WHitehall

3-0272-+-Teletype NY 1-956

Private Wire to Boston

one

$2.75

& Trust Co.

-DIVIDENDS;"

—

1943 $4.50

—

1942 $3.65-

National Radiator Co.
Analyses available

was

Public National Bank

January 15, 1945--$.75 v

Approximate selling price—31

be noted parenthetically j

Weigold's

effect.

•

It may

that

as presiding officer at the 19th Annual Dinner
Security Dealers Association on Thursday evening.
Feb. is, at
1
X--XX
Waldorf-As- sociation and, I imagine, the extoria Hotel in changes and the NASD, too, do
New
York hot intend to be quiescent when
City, Clarence any one of us is in disagreement
E. Unterberg, with them." He urged the secur¬
President
of ity dealers not to lose sight of the
the
Associa¬ one duty delegated to each of
tion and pro¬ them—protection
of the public
and
commented
that
prietor of C.E. interest
"there
is
Unterberg * &
opportunity for all in the
business."
Co., New York
"It gives me a great deal of
City, asserted
that the
Se¬ pleasure to welcome -all of you
curities
and here this evening," Mr. Unterberg
Exchange began.
"Every member of our
Commission, Association shares in the pride we

"unaggressive

compliment Mr. Charles W; Weigold, New York dealer in munici-;
pals, on his statement during,
Tuesday's hearing concerning a
dealer's responsibility to his cus¬
tomers.

Wire

ning, and therefore, of national
recovery. Congressman Carl Hinshaw; (R., of Calif.) -expressed;

Members

New York Security Dealers Assn.
Ill Brpadway,New York 6, N.Y.

currency,

—

is important from the standpoint
of municipal public works plan- :

Mr. " Purcell' took

Request

Wolverton pointed out that clari¬
fication of the pending question

would .have such

Engineering

Bought —Sold

short address

of the New York

the

Teletype NY 1-1203

Flour Mills

Clarence Unterberg Stresses
Protection of Public Interest

committee,
suggested that, before the House1
Committee acts

Broadway

HAnover 2-8970

neces¬

for forming an appraisal of
advisability of an investment.
Congressman Charles A. Wolverton, of N. J., leading Republi¬
sary

Highlight of Mr. Purcell's testi¬
Mr. Purcell admitted that "per¬
mony against the Boren bill was
the revelation, seemingly for the haps the rule as originally sug¬
first time, that the controversial; gested would" have had a dele¬
terious effect, on the primary dis-,
proposed Rule X-15C1-10, origi-;
:

New York 6, N, Y.

' "

Ganson Purcell.

have

Informatiam

Members New York Security Dealers Attn.

experiments wijth paper currency^
managed

all ^suchxoun-

tries

Statistical

QUOTED

U. COLDWATER & Cft

government

standard

modity

cies and create confidence in both
the

com¬

Country

CompUt,

standard with considerable pride.
Nothing else has served .as well as
gold to stabilise, domestic curren¬

and"* best
the

money

Testimony of Repre¬

BOUGHT -SOLD

modity

has served the

-.v-

CERTIFICATES

j
There is no mystery about money, money rates or the magic of
government management.
Good money has always been a comValue.

sentatives of 1BA and the Chairman of the SEC and Others

were

4-6551

Has Been Done in Past Periods.

country

bill

NEW YORK

TITLE COMPANY

■

Analyzes the
Course of Low Interest Rates Which Followed the Depression of 1929
and Stresses the Need for Distinguishing the Rate on Safe as Compared
With Risky Investments.
Sees Still Further Decline in Interest Rate
If Reserve Requirements Are Lowered, but Predicts an End of Cheap
Money When the Need for Deflation Arises and Currency Is Again Made
Convertible Into Gold. Says Process of Currency Revaluation Will Be
Slow and Accompanied by Hardships and Speculative Opportunities.. :

exchange, remittances for
foreign subscriptions and advertisements

Concluded

ondary Marketing of. Municipals
Working on Alternative Measure.
Attack, Which Has Been Scrapped
Effect on Primary Distribution of

STREET.

Telephone: WHitehall

Economist Expresses Confidence in the Ultimate Post-War Return to
the Gold Standard

must be made in New York funds.

Hearings On the Boren
on

Obsolete Securities Dept.

Brooklyn College

est

House Committee

wise

hands.'

your

09 WALL

Exchange

Xx By ivan weight

-XX:X;-' v/x

world

Biif

off

Cheap Money
Excess Supply

land, c/o Edwards & Smith.

Oar Real Estate

■

Secret of

Teletype NY 1-832, 834

exceedingly

advice to his heirs, but
he couldn't find a sure
way to
prevent
them from buying stocks
and
bonds
that were
to
become
obsolete.
No
^matter who's h'eir you are, we
probably can take those obsoletes

Teletype NY 1-5

Members New York Stock

Thursday

(complete stafistidal issue—market quo*
tation * records,
corporation, v banking,
clearings, state and City news, etc,)

Board of Trade BIdg.

left

investment

(general news and advertising issue)

Members New York Security Dealers Asa'n

SLIPT HERE
Washington

& €o.

25 Broad Street. New York

Thursday, February 22, 1945

Pettibone Mulliken

arid Industrial

William Dana Seibert, President

AND COMPANY

GEORGE WASHINGTON

even

William D. Riggs, Business Manager

Published twice

licrasifir

PREFERRED STOCKS

Editor and Publisher

offerings of

High Grade

••J'';'.#

"/REctot 2-9576 to 957%

Ralston Steel Car

interested in

are

*y- -f-v •' 'r-;

Herbert D. Seibert,

City Pub. Ser.

Reg. u. S. Patent Office

William B. Dana Company

Munising Paper
Kan.

CHRONICLE

FINANCIAL

of!

V "

effective presenta-'
tions in support of the Boren bill.:
Congressman Boren stated that

•Circular

request

'•* ^

;

for Dealers only

very

HoiiR^seSTrsster
Established IV14 '

the issue before the committee is

simply Whether SEC. should have
regulatory powers over State and

(Continued

on page

849)

Trinity-' Place,*Nevv-York;.j5, K Y,

Telephone: BOwling Green 9-7400

Teletype: NY 1-375

C.E. Unterberg & Co.
Members JY.; Y. Security Dealers

4SS'P

Broadway, New York 6, N. Y
Telephone BOwling Green 9-3568

Teletype NY 1-1668

•

THE COMMERCIAL & FINANCIAL

828

^Oxford Paper Pfd. & Com:

American Hardware

M. H. Hanna

;

Warren Bros. "B" & "C"

Magazine Repeafg Razor
*On

issues

these

have

study prepared by

Bought

Sold- Quoted

Members IV. Y. Stock Exchange and

Brockway Motor*
Detroit Harvester

7-0100

Petroleum Heat & Power

Ohio Match Co.

J.K.Rice,Jr.&Co.

Richmond Cedar Works

Other Principal Exchanges

Established 1908

Members N.

Y. Security

Bell System Teletype

•

Dealers Assn.

REetor 2-4500—120

Bought & Sold

TELETYPE NY 1-672

; \

Alberene Stone Go.

105 West Adams St., Chicago

New York

115 Broadway,

TELEPHONE BARCLAY

;;

Home Indemnity Co. '

Sargent & Co.

/
,

3 Jrying Trust Co.

;

Joseph Bancroft & Sons

special

Research Dept,

pur

Goodbody & Co.
Boston & Maine, Pfds.

Shatterproof Glass

Sunray Oil Pfd.

Thursday, February 22, 1945

CHRONICLE

Broadway
N, Y. 1-714

Douglas Shoe, Com. & Pfd.*
Electrolux*

•*

...

Moore-McCormack

ment

Telephone: DIgby 4-0985-6-7-8

••

•

Firm markets
i

"•

■

and

information

Pine'Street

American

past
dozen
'"■■■'r\

INDUSTRIALS

;

Exchange

■i I

PHILADELPHIA

Lanrence "Portland 'Cement /*

Midwest Refineries Pfd. & Com.
Aetna Standard Eng.

Blair &

Gruen Watch Common

Remington Arms

American Mail

Am. Window

Central Soya Common

Parker Appliances

American Hardware*

Glass, Com. & Pfd..

Co., Inc.

Valley Mould & Iron

J. STEINDLER & CO.

Merchants Distilling

West Michigan Steel

Memos on

Common

Request

Buda Co.

Deep Rock Oil

BUCKLEY BROTHERS

BROADWAY

Differential Wheel

NEW YORK CITY 4

Gleaner Harvester

Pont, Homsey Co.

Great American Industries*

DIgby 4-0330

System Teletype NY 1-1340

Capitol 4330

Los Angeles

Stock Exchanges

Street, Philadelphia 2
Los Angeles
Hagerstown, Md.

New York

BOSTON 9, MASS.
Bell

York, Philadelphia and

Members New

1529 Walnut

Shawmut Bank Building

Federal Machine & Welding

Teletype BS 424

Pittsburgh, Pa.
N.

Telephone—WHitehall 3-7253

Private

Liberty Aircraft Products

Wire

System

between

Philadelphia, New York and Los Angeles

Mokan

Oxford Paper

We Suggest:

Recurrent jfeed

Moxie*

For
Shearing SEC Powers

Remington Arms

Riley Stoker*

Saddling Upon Investment Advisers the Difficult Duty of Searching
Out the "Best Price at Which a Transaction Could Be Effected for a

A Low-Priced Steel Stock

'Central Iron & Steel

Missouri

$10 Par

Public Service Corp.

Net

Quick

Book Value
Market

Client Elsewhere" Is
Alabama Mills*

Rule-Making and

New Drag-Out of the Disclosure Skeleton and a
and Brokers Under the Same Obligations as

Investment Advisers Despite a

Merrimac Mills

$7.16

OFFICE

BOSTON

Tel. HUB

Amer. Gas & Power & Wrnts.
Central Public Utility
Conn.

Light & Power Com.

Cons. Elec. & Gas Pfd.

Indiana Gas & Chemical

Teletype BS 69

1990

Magnavox Corp.*
Majestic Radio & Tel.*
P. R. Mallory*
Circular

Request

unofficially on his pet hobby "disclosure," dealing with the subject officially.
We should like to

know who presented the question,

ments of his definition of

Mr.
Y. Security Dealers Assn

120 broadway,

REctor 2-8700

new york 5

tfJS

Wires to Chicago and Phila
ENTERPRISE 'PHONES
Hartf'd 6111
Buff. 6024
Bos; 2100

Direct

schemes or

Clearly, the question put contemplates no such methods.
The enquirer, whoever he or it may be, knew beforehand
that fraud of any kind is contrary to the law.
Such listing
was
gratuitous and had no place in the opinion.
It is when handling the subject of disclosure that Mr.
Treanor really waxes expansive.
Here is one of the ele¬
a

minimum disclosure.

ment adviser who effects any

Members N

The invest¬

transaction for his client, says

Treanor, should disclose
".

the transaction
elsewhere if such 'i\.
price is more advantageous to the client than the actual
purchase or sale price."
.

could be effected by or for the client

,,,

Bought

Mr.
"

—

Quoted
Dealer Inquiries

Treanor, too, can make mistakes that
„

(Continued

on page

829)-'

are

beauts.

Texas

American Box Board Co.
Odd

Company

All

■

Co.

Issues

Warner Co.

pfd. & com.

Wawaset Securities

Securities

H. M.

DALLAS, TEXAS

Byllesby & Company

PHILADELPHIA OFFICE

San Antonio

V ;

pfd. & A

Pittsburgh Railways

RAUSCHER, PIERCE & CO.
Houston

& Fractions

Empire Steel Corp. com.

Preferred Stocks

Southwestern

Lots

Botany Worsted Mills

Company

Galveston-Houston

All Texas Utility
us

Invited

Pepper

Southern Union Gas Common

Check

PH 30

Phone to N. Y. C.

COrtlandt 7-1202

Republic Insurance

North

St., Philadelphia 3

Pennypacker 8200

Sold

Dr.

have Jim Treanor, who has often spoken

against the employment of fraudulent devices,
artifices.
\ft•

Emerson Radio

★

presentation took, and why this information
is not disclosed in the opinion.
Instead of addressing himself to the immediate issue,
Mr. Treanor first lists the obvious statutory interdictions

Du Mont Lab. "A"*

1606 Walnut

DALLAS

security from a client.
You ask also what
if such a transaction is permis¬

what form that

Southwest Natural Gas

BOENNING & CO.

SQUARE

9, MASS.

So'western Pub. Serv. Com. & Pfd.

At last

Mass. Power & Lt $2 Pfd.*

Puget Sound Pr. & Lt.

sible."

Peoples Lt & Pow. Pfd.

Iowa Southern Util.

buy

Convertible Preferred

Private

disclosure is necessary

Empire District Elec. Com.

Atlas Plywood Corp.

about 6%

The Securities and

UTILITIES

Common

$16.34 per share

POST

Statutory Provision to the Contrary.

Exchange Commission, in a recent
release, made public an opinion of James A. Treanor, Jr.,
Director of its Trading and Exchange Division.
We quote from its text:
"The question has been presented whether it is per¬
missible for an investment adviser to sell a security to

per

LERNER & CO.
10

Consolidated Textile

Circular Available

Put Dealers

Twist to

Not Only Impracticable but Beyond the Scope
IPs Another Move to Enlarge SEC

of the Investment Advisers Act.

Aspinook Corp. :,
Berkshire Fine Spinning

•

Bldg. Phila. 2

Stock Exchange
Phone Rittenhouie

Peter Barken Will

' :

3717

Teletype PH 73

ST. LOUIS

Open Own Inv. Firm
March

1, Peter Barken
offices at 32 Broadway,
York City, to act as dealer

will open
New

in unlisted and inactive securities.

STIX: &

partner in

Mr. Barken has been a

J. B. Lang & Co.
>

Waterous Rejoins

Kidder

Major Donald J. Waterous, who
has recently returned from over¬
duty with
Forces, is. again
seas

the

firm

New

their
Street.

New

the Army Air
associated with

Kidder

York

'V..'.

Exchange

Stock

York

office,
-

•

Hartford 4, Conn.

6 Central Row

Members flew York Stock

Harris, Seyboldt & Potter

Hi'-

PUTNAM & CO:

Colonial Stores Pfd. & Com.
-

organization

our

Price; $2.00 prepaid

Christiana Securities Common

Teletype NY 1-2425

government

tj.

;

Bird & Son

New- York 5
'

Hanover 2-7793

Optical

bank

Warren C. Heidel
/

of investments

XJnd&

the

* 4 •-/**
,.*V V': ' v

FIRST COLONY CORPORATION

TriumphExplosives v
>
United Piece Dye Works<■>
WhitingCorp.
•••>•;
Wickwire Spencer

policies

the -Invest¬

metropolitan

in/ relation

stocks-

years,

BOSTON, MASS.
"

position

.fiscal

Sheraton Corporations

-An:.analytical; review

New York

Indiana Gas & Chemical1 Fashion Park

Purolator*
Scovili Mfg.*

80 Broad St.

Pittsburgh Railways

York Corrugating

Philip Carey-fe*

.v;

BANK STOCKS

Incorporated

Michigan Chemical
V

BOOK ON

LEWIS & ST0EHR

General Machinery
Maine Central Pfd.^

Go.

1 -Wall
~

INVESTMENT

Go.

SECURITIES

509 OLIVE

STREET

St. Louis l.Mo.
Members St. Louis Stock

Exchange

em*v^T^^w3t«mcr«®^s8^Kffi3laft!sww£^;1f«s^wc^^^ rvyv^o-aw'rtJ&A}£«AUW v&muM, iu&Hb.J» jk-tvki.a

Volume 161

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4362

829

american bantam car
WE TAKE PLEASURE IN ANNOUNCING THAT

6% CUMULATIVE CONV. PREFERRED
Dividend of 30$

paid Jan. 31, 1945

(Arrears $3.75)

•

■

-A

V V V;; v'-'

-v

-'i'A" r"';

.'..f

■'

V.:t ..:•••/«, *. '"Xy"\

.•.'*■

[[

\ '

CANADIAN

-*■' > V/.V

SECURITIES^

Mr. John T. Von der Heide

$10 par (callable at 14 plus arrears)
FORMERLY

Circular

DEPARTMENT OF STOCK

Request..

HoKRssESltoosiHt
Established 1914

ASSISTANT

HAS

BECOME

,-v'•*»•

9TOCK

LIST-NEW YORK

Dom. of

DIRECTOR

Selling Price—15 $5

EXCHANGE

Abitibi P. & P. 5, 1953 V )
n^Aldred Inv. 4%, 196T

OUR ORGANIZATION

ASSOCIATED WITH

V'-C'*?>.**''Vi

;■{- ,-V8 A

.•

?'Y f '; '*•

Assoc. Tel. & Tel.

Canada, Internal Bonds

Prov. of Alberta, All Issues

5yg#; 1955

Trinity Place, New York 6, N. Y. I

*•/*.£. S

.vJV#'-

s'.v.';

Brown

GEORGESON 8c CO.

Telephone: BOwling Green 9-7400 """" Teletype: NY 1-375
.

Can. Northern Power 5, 1953
Foreign Pow. Securities 6, 1949

NEW YORK 5. N, Y

52 WALL STREET,

Company 5, 1959

Gt. Brit. & Can. lay.

4%, 1959

Cu rb and Unlis led

IntL Hydra Elec* 6, 1944
Mont. It. Ht. & Pr. 3%, '56,73

Securities

Power Corp. of Cda. 4%, 1959

HANOVER

2-147O

•

FEBRUARY

t»-.

1949

Peoples-Pittsburgh

'Trust Company
Analyst a

V
r,"

••;,'• ».'?•■ • 1 '

request

upon

V- ' .'ir'V:

Steep Rock Iron Mines 5%, '57
.

PeteifilfoSsPir

"v.P MICHACU-HEANEY,' Mgre-1 -V,'r'

Vy.« "-J

HART SMITH

V t<

WALTER KANE,' Asst. Mgr.

WILLIAM St., N. Y. S

,-r'

■"• V-:V>-'r.-":;

•>:

"'-'VPV

V*"■

" **'

r>.

-Bell' Teletype NY-1-895

New York

W. J.

Banigan & Co.
Successors to

CHAS.

H. JONES

Established

BtMJway, N. Y. 4>

•

Joseph McManus & Co.

r.\t

Members New York Curb Exchange

CO/

■-<■/;

1904

Digby 4-3122

- ;

^ New York 6

Teletype NY 1-1610

132 W.

Community / Water Service

22ND STREET
:

CHelsea 3-2457

f'CXIEB^MINPNG

All Issues

52 William

'.'v

Members N.

request

Herrick,Waddell

;

-v

BONDS

NSTA Notes

the sale

price,

honest

one,

the

case

be, with full observance of other responsibilities re¬
specting disclosure and no unconscionable spreads or illegal

P. F. Fox of P. F. Fox & Co., has been appointed a member of
the Uniform Practice Committee of the National Association of Se¬

commissions taken, he would, nevertheless, saddle upon the
adviser the difficult duty of acting in
derogation of his own

curities Dealers District 13.

Yet

transaction.

first reading this part of the opinion
may ring plausible, its ridiculousness must be evident
to any one who is well grounded in the securities
field,
not only because it is impractical but also because of
the interference with the regular course of business as
we have known it for decades, which its
operation will

1 Wall St., New York 5, N. Y.

such

American Maize

directive will /not hinder the SEC in enlarging its
through rule-making.
Every now and then the disclosure skeleton is hauled
of the closet and rattledj as witness Treanor's address

Mr. Treanor

points out that Section 206 of the Invest¬ out
1940, subdivision (3), provides that it before the annual
convention of
unlawful for a registered adviser
Securities Commissioners at St.

ment Advisers Act of

Products Co.

the National Association of

Frederic H. Hatch & Co.

Louis last December.

"acting as principal for his own account, knowingly
Reading this address, which was published in our issue
to sell any security to or purchase any security from a of Jan. 11, 1945, will
bring an immediate awareness that, the
client, or, acting as broker for a person other than such above statutory provisions
notwithstanding, as far as cost dis¬
client, knowingly to effect any sale or purchase of any closure is concerned, Treanor would put dealers and brokers
security for the account of such client, without dis¬ under the same obligation as investment advisers.
closing to such client in writing before the completion
At varying intervals we have warned against these dis¬
of such transaction the capacity in which he is
acting
and obtaining the consent of the client to such transaction."

and further r

"The

apply to

prohibitions of this paragraph (3) shall not
any transaction with a customer of a broker

dealer if such broker

dealer is not acting as an

investment adviser in relation to such transaction."
From this it must be evident that

Congress by express
clear its recognition that
brokers and dealers have not the obligation to make the
same
disclosures which are incident to the profession of
registered investment advisers. "
.

legislative provision has made

unofficial—part of

ers

Incorporated
Members
63 Wall

Security Dealers Ass'n

Street

New York 5, N. Y.

jiry/v Bell Teletype NY .1-897

;i'

closure refinements upon which Treanor harps. We believe
them to be—and these, whether the utterances are official
or

Teletype NY 1-955

Congress must have known that brokers and dealers

power

& Co.

Members New York Stock
Exchange

DIgby 4-~(M50

purchase and the sale of securities.
Here is a plain legislative mandate, but Mr. Treanor's
cumulative activity with respect to disclosure as far as
brokers and dealers are concerned, causes one to suspect that

entail.

Coupons Missing

do have salesmen and do from time to time recommend the

Whilst upon a

;

Gude, Winmill

NEW YORK

may

•

WITH

through patronizing another.

Assuming the deal to be in all respects

1-897

Co., Inc.

WE BUY

with full disclosure of the cost

■

New York 5, N. Y.

Bell Teletype NY

burden cast upon investment advisers to canvass
the trade to determine whether by
any possibility the client

Security Dealers Ass'n

(Continued from page 828)

;

Consols

63 Wall Street-

Teletype NY 1-2419

Shearing SEC Powers

shall be

l'v

•

Incorporated

Circular

■

—

;

Frederic H. Hatch & Go.

Recurrent Need For

could have saved

v-.

Preferred Stock

55 LIBERTY STREET, NEW YORK 5, N. Y.

Here is

1948

Securities Co. of N. Y.

St., New York 5, N. Y.

WHitehall 4-3990

y.t:

INC.

Established-1924

Telephone HAnover 2-8681

-4s

/.•.-Issues
;

Class "A'' Stock

George R. Gooley & Co.

79 Wall St., New York 5, N. Y.

Minneapolis & St. Louis Ry.

Lipe - Rollway Corporation
Convertible $1

j
Crescent Public Service 6s 19545
r--,

■

Eastern Minnesota Pr. S1^ '51

.STOCKS

Co., Inc.

5^8-68 1946

;

East Coast Public Service

Randall Company

"A" and "B"

F. BLEIBTREU &

Fondar1olin$towii &
Gloversville

M PHILIPPINE II

Toronto

OFFSET

NEW YORK 11, NEW YORK

^^■SPECtAUSTS^im-^: I

Montreal

LITHOGRAPHY

■Chicago''Stock Exchange V:

39 Broadway -

HAmrer 2-8380

PRINTING.!

CO.

HAnover 2-IM9

planned strategy against which deal¬
unwavering guard.

HAYTIAN

and brokers must stand

Although the statute referred to leaves

no room

for

doubt, in view of the tendency of the Commission, there
should be a definite legislative shearing of SEC rule¬
making powers so that "disclosure hobbies" will be per¬
manently shelved, and the course of trade in a vital
field will not be
How
economy

controls?

nation accustomed to a free
with encircling bureaucratic

.*•

i
1< Alt It
;

Members'
York

Stock

CO
j

Exchange

'■

••

vv..

«.

•

'•

-;A

120 WALL ST., NEW YOKK

TEL. HANOVER 2-9612

l.Vv

Requesjt

New York Coffee & Sugar Exchange

•

CORP.

Quotations Upon

New

hamstrung.

much longer is
expected to put.:

-r ,v •• •

.* Jt

-ittb

THE COMMERCIAL & FINANCIAL CHRONICLE

830

We maintain

Bunte Bros. Common

Fuller

active interest in

Leece

Mfg. Common

Neville/Common

Central

United Stock Yards Pfd.

Galvin

]

Established

1922

Specialty Common

CHICAGO

Creamery Package Mfg., com.
International Detrola Corp.
Locomotive Firebox

United Stockyards Corp.,

that

analytical re¬
position of

Bank .Stocks—An

pfd.

view of the investment

metropolitan bank stocks in rela¬
tion to Government fiscal policies
dozen years—By War¬
ren C. Heidel—price $2 prepaid—
Putnam & Co.,
6 Central Row,
of the past

W. J. Sennott, Jr.

—

Fred J. Cook

Clement, Curtis & Co.
134

LA SALLE ST.

Hartford

CHICAGO 3

Teletype CG 214

Randolph 6800

Events—Ac¬

Rail

Boston & Maine Income 4*4s of

5, N. Y.

_f Fred. W. FairmanCo. Li

Comment

York

Stock

Chicago

Board of

Trade

Chemical—Late

Gas &

memorandum—First

Trading Markets

Interstate Aircraft
Garrett

Corporation

York

Magnavox Common
SALLE ST.

Randolph 4068
CG 531

Telephone

System

Consolidated Electric & Gas
Pfd.

National Gas & Electric Corpo¬
outlook

Corp.

5/59

Chicago Corp. Com.

South La Salle Street,
CHICAGO

Central 7540

CG 530

Wires

Principal

Our

Cities

the

Offices In

Throughout

the

dis¬

Industry—Booklet

cussing prospects for construction
manufacturers

Post

Welch,

field—Arrowsmith,

building

Steel—Bulletin

ton

Discussion

—

2, Pa.

Year"—Bulletin

alysis of
this

Ill

unlisted

and

preferred

public utility
stocks—

Street, New York 5, N. Y.

partners or non-member partners
of "regular or associate member
for considering
Stock-r-An-

Roller

Co.,

Alkali

Mericka

Commerce

Circular

—

Cleveland

14, Ohio.

"Dynamic Economies"
ration- of

National

Bank

Trust

for

;

—

Prepa¬

Comment—On

Research

over

Institute,

Inc.,

500

Fifth

Avenue, New York City—$5.00 per
copy. '
Park,

Inc.

—

Post-war
& Co.,

What
Estate
cast

Air Lines

Ahead

Securities
1945

for

Baker &

135 South La Salle Street
.

American

Tele. CG 573

lar

Mills—Descriptive circu¬

lar—J. F. Reilly & Co., Ill Broad¬

New York 6, N. Y. '

way,

Foundation

Co.,

Hardware

—Special

115

Co.,

Bantam

Car—Circu¬

this, situation—Hoit,

Ill

F. Reilly

Broadway, New York 6,

Member, National Association

of Securities Dealers

—

made

Also

the

ap¬

Chair¬

of officers, department heads
committees were
approved.

man

Charles

McGowan

was

re¬

named

Secretary and Director of
Department of Transactions;

Christopher Hengeveld, Jr., Treas¬
urer and Director of the Depart¬
ment of Administration; Francis
X.

Gaudino.

able to

ment

Corporation—Brochure
avail¬
dealers—Fred W. Fairman

Garrett

Rose

John

(Continued on page 831) "

Madden, dean

UNITED BRICK & TILE CO.

War Stock

Long-Bell Lumber

MOHAWK RUBBER CO.

New four page
now

[vNEELAND & CO.
BOARD

LOS ANGELES 14

Trinity 3908

Howard

Tully.

Morton

M.
S.

Sykes

and Herbert G,
'
' "..
Security Rulings
; "•

Committee

Wohlgemuth,

David

Committee

General
U.

Transactions

Page, Chairman; Andrew Baird,

Joseph

John A.

Ludlow, Fred C. Moffatt, Frederick

available

brochure
request

Crowley,

Roth,

Werle

Edward

and

David

Morton

Committee

Jones,

Lawrence

Shean,

Edward

Wohlgemuth.
Stock

Transactions

Page, Chairman; Andrew Baird1,

Joseph Fj. Crowley, H.. Lawrence Jones, Fred
C.

Moffatt, Frederick J. Roth and Edward

Werle.
Committee

Bond Transactions

' '

John

Chairman;

Shean,

Ludlow, Morton Wohlgemuth.:
General

Committee

Albert

Supervision

Outside

Redpath, Chairman; Eugene *>.

Brooks, Edward J. Cohan, Chas. D. Halseyy
Bayard

Paul

Hoppin,

Hughes,

HV"

Lawrence Jones, Charles E, Judson, Thomas
A.

Larkin, Edward
C. Sykes.
f
.

Vv.

Albert

Lawrence

Jones,

Thomas

Larkin

Paul

Committee

Halscy,
Sykes.

Firms

;V-

-.v

Chairman; /

Hughes

and V
: s»
'

.'.'A Y.

vW.dy!-

Edward

Member

Rcdpath,

•

and Howard
.
' 4 ■»
%

Shean

Committee

Business-Conduct "

•

■'

'v ;

Communications

Howard C„

Hoppin and
/

Committee

Chas.

Chairman;

Shean,

Bayard

and

TRADE

Judson, Chairman; Eugene S.

Federally

Insured

Certificates

AGGREGATING

$25,000,000.00

Have'

been
purchased
thru
us
by
Companies, Trust Departments,
Estates, Pensions.

Federally

West/rn

Union Telephone

Insured

Savings

Loan

Associations about 400 Represented—
in

every

section

the Coun¬

offer Liquidity, Insured safety of
Principal, complete
_

* A

FINANCIAL

freedom from

mar-

bet losses-

NOI INC

CHICAGO 4

BUILDING

141 W. J/ACKSON BLVD., CHICAGO

Tel. WAB. 8^586 and

COMSTOCK & Co.
231 So. La Salle St.

Tele. CG 640, 641 & 642

Dearborn 1501

Teletyoe CG 257

Commissions

Charles E.

located

Joseph

Chairman;

d'Assern, Herbert G. Tully and William
Wilson.

„

CG 362

Listing

Landsberg, Chairman; Eugene
Brooks, Casper Dc Gersdorff, Thomas Au

try,

j Randolph 3002

Wohlgemuth.

Mortimer

MARKET

650 S. Spring St.

De *

Common

INTERNATIONAL DETROLA CO.

135 La Salle St.

Howard

Trust

UNDERWRITERS

CHICAGO 3

Eugene

Casper

Larkin,

Commjtlc

of the

Outstanding

Post

Pacific Coast

DISTRIBUTION

Securities

Chairman:
d'Assern,

To Yield...

AMERICAN WINDOW GLASS CO.

AMERICAN VITRIFIED PRODUCTS CO.

SECONDARY

Hal-

"' V

Securities.
T.

For

«,

Vice-Chairman.

and statistical information,

N. Y.

and Morton

Wholesale Distributors
Middle West

At the 35th organization meet¬
ing of the Board of Governors of
the
New
York
Curb
Exchange
Edwin / Posner
was
appointed

pointments

Thomas

Edward

acting
Assistant
Treasurer; - Henry;"; H.; Badenberger, Director of Department of
Outside Supervision; and Martin
J. Keena, Director of the Depart¬

J
CARTER H.CORBREY&CO.

(three-year term)—Thomas Mor¬

the

Co.—Circular *■

situation—J.

current

N. Y.

study—Goodhody

American

4, N. Y.

and future—Amott,

Broadway, New York 6, N. Y.

Chicago 3, III.

Tel. STAte 4950

the

Co., Inc., 150 Broadway,

New York 7,

KITCHEN & CO.

Flour

Real
Market—Fore¬
for

25 Broad Street, New York

Chas, D.

Sykes, Herbert G. Tully, William S. Wilson

ris, Sr., and E. J. Muller, Wm. P.

Shean

President Pro-tem and Edward J.

Fashion

Joseph

Gersdorff,

Hoffman & Co.

and

Square, New York 4, N. Y.

Chicago & Southern
Mid- Continent

three

Paul

Co.;

Wilson,

...

Committee

Landsberg,

Brooks,

studies—Econ¬

demknd

outlook—Simons, Linburn
situations—II. Hentz & Co.; Han¬

Hughes,
Gude, Wihmill & Co.; Thomas A.
Larkin, Goodbodv & Co.
Trustees of the Gratuity Fund
Bros.

—

Union

Co.,

Building,

Hoppin

Hoppin,

Bayard

Co.;

Committee

Chairman;

Shean.

Mortimer

business'for the pub¬

(three-year
tetm)—Casper
DeGersdorff, Harris, Upham &
lic)

Inc.,

Broadway, New York 6, N. Y.

ometric
Public

William

Page,
Rcdpath, Frederick J. Roth and

General

Larkin,

of Gov-

(Class "B", of which there are
twelve, who are associate member

common

Co., Inc., 70 Pine

Members of the Board

attractive low-priced situ¬

term)—Thomas W. Bartsch,
W. R. K. Taylor & Co.; Mortimer

firms doing

Chairman j
Crowley,,

Jr.,

Joseph

and

Posner,

(Class "A", of which there
fifteen, who are regular mem¬
bers
of
the Exchange)
(three-

nors

Common

reasons

ation—F.

Wm.

Preferred Stock Guide—Quota¬
on

Co.

Mortimer Landsberg, Benjamin B. Mc¬

Albert

Edward

Sykes, Wagner, Stott & Co.

4, N. Y.

Alpin, Jr., Fred C. Moffatt, David U.

Brickman, Landsberg
& Co.; Fred C. Moffatt, Reynolds
&
Co.;
Frederick Roth, H. L.
Buchanan
&
Co.;
Howard
C.

tries, reviews thirty-four securi¬
ties—Strauss Bros., 32 Broadway,

Cross

sey,

Bartsch,
Werle

Executive

Edwin

governors

Landsberg,

■

New York

elected

of the Board of Gov¬

Members

;

Arbitration

McAlpin,

W.
C.

year

Buckley
Brothers,
Walnut Street, Philadelphia

1529

Edwin Posner

are

Soya

possibilities

Benjamin

ernors

9, Mass.

Diamond

dealers
only—C. E. Unterberg & Co., 61
Broadway, New York 6, N. Y.

TRADING MARKETS

;4t Y

Committee

Edward

and trustees are:

developments—Lerner
Office Square, Bos¬

& Co., 10 Post

•!

Wohlgemuth.

Thomas

term

Admissions

Y -/rY;

three yiears.
'The "newly

Broadway,

115

Company—Analysis,

Country

Iron

recent

6, N. Y.

G. A. Saxton &

for

Outlook

and for various

tions

Incorporated

Railways

Colony

Post-War

New York

E. H. Rollins & Sons

for

City. /

"Confident

— Current
Corporation,
Street, New York 5, NV Y.

Pittsburgh

Morton

elected

were

Street,

N. Y.¬

study—First

Committee

the

-of

Gratuity Fund

Bis-

120 Broadway, New

the outlook for eight vital indus¬

the

Direct

only—Peter

Co., 31 Nassau

New York 5,

and

on' position

dealers

for

Building

American Phenolic
Com.

York

Central

70 Pine

135

New

4, ILLINOIS

CHICAGO

sell & Meeds,

5, N. Y.

Morgan &
208 SOUTH LA

Colony Cor¬

Street,

Pine

poration,

ration—Report

Bell

Central
Indiana

ors,

and two trus¬

Portfolios—Circular—Laird,

Exchange

Chicago

o v e r n

ap*

Thomas W.. Bartsch, Chairman; Andrew?
Baird, Joseph P. Crowley, John A. Ludlow^
Frederick J. Roth,
Herbert G. Tully and

four Class "B"

5, N. Y.

Members

iFirm

1944 Rail

Street,-New

Wall

\ V

"A"

o v e r n ors,

tees

standing committees
are as follows:

v e

Results—Current report—Vilas

Hickey,

Class
G

The

Mr.

Posner,

5, N. Y.

Board.

pointed

dition

Street, New York 5, N. Y.

tion scheduled in the next month

Wall

the

the
Curb Exchange
They are not engaged iii»

public

the securities business.

—Vilas & Hickey, 49 Wall Street,

Governors

for the fifth time to represent

Break Down Government Bond
| SINCE 1908

for,

"C"

Class

re-elected

the;

Association; ancj
publisher, were

term & of
one
potentiali¬
In ad¬
ties—McLaughlin, Baird & Reuss, year.

1970—Memorandum

Descriptive circular — Adams &
Peck, 63 Wall Street, New York

New York

Retail Dry Goods

Board of Gov¬
ernors

University School of
Benjamin H. Namm,
president of Namm Department
Store in Brooklyn and National
Commerce,

Victor F. Ridder,

of-

man^

York

New

was

chair¬

elected

6, N. Y.

Boston & Providence Railroad—

Calendar

the

Edwin

Roth-

h i 1 d

s c

Troster, 74 Trinity Place, New

York

ner

4, Conn.

Exch. and Others

Y. Stock

Members N.

election

annual

Posner,
'Andrews,
Pos¬

the

firms mentioned will he pleased to send
interested parties the following literature:"•'*/*
' ;
;

understood

the

New York Curb Exchange

Recommendations and Literature
is

Minneapolis

Pittsburgh

Philadelphia

Posner Chairman of N. Y. Curb Exchange

!
At

Teletype CG 273

Telephone State 8711

Central Electric & Gas, common

Central Steel & Wire Co., com.

Y-

135 So. La Salle Street, Chicago 3

New York

Teletype CG 864

Dealer-Broker Investment

Ampco Metal, common

Telephone Dearborn 1421

•

Incorporated

Stock Exchange

209 SO. LA SALLE ST., CHICAGO 4, ILL.

Tele. CG 271

Tel. Randolph 6960

%•

H. M. Byllesby and Company

South La Salle Street

120

(Motorola)

Mountain States Power Co, 5% Pfd,

SILLS, MINTON & COMPANY, Inc.
Members Chicago

Manufacturing Corp. Common

Mountain States Power Co. Common

Chicago South Shore and South Bend R.R. Common
,

■

Maryland Casualty Common

C. L. Schmidt & Go.

—We Maintain Active Markets In—

•

Puget Sound Power and Light Common
Ampco Metals Common

Central Elec. & Gas Common

Thursday, February 22, 1945

\jUmlovmrA. Co.
105 SO. LA SALLE ST.. CHICAGO 3

'W*

[Volume 161

All

I Plans

Robbins &

Altorfer Brothers Co., Com. & Pfd,

Chicago Daily News, Pfd.

Myers, Inc. Preferred & Common
A"\

Midland Utilities, Deb. 6s Sept. 1938:" v '

Prepared—Conference Invited

/:;■■ v":.r-v.

■

Pickering Lumber Corp. Preferred & Common

Branches

Its

'•

Portland Electric Power, Inc. 6s March 1950

' '

•

Foote Brothers Gear & Machine

DOYLE, O'CONNOR & CO.

New York 6, N.Y.

131 Cedar Street

Gisholt Machine Company,

•.

INCORPORATED

•

Telephone COrtlandt 7' 5060

[

135 SOUTH LA SALLE

Boston Chicago Philadelphia San Francisco

Dearborn

Telephone:

Hart Carter

STREET

.'•*

9600

CG 1200

Teletype:

United Printers &

Dealer-Broker Investment

Security Dealers

Patrick B. McGinnis Was
-

of the New York Security Dealers

held at the WaldorfHotel and
attended by

Association
Astoria
about

•

' '•

1 ' '

•

Discussion

—

terberg & Co., 61 Broadway, New
York 6, N. Y.

potentialities—Buckley Brothers,
1529 Walnut Street, Philadelphia

members and guests

1,000

■'

Watch

Gruen

Co.—Engineering

M. A. Ilanna

and significant
eighteen stocks in 1944
Bissell & Meeds,
120

for

ratios

Stocks—Com¬

Bank

analysis

parative

2, Pa.
;

York

New

—Laird,

report—ITerzog & Co., 170
Broadway, New York 7, N. Y.
Utilities

Southern

Com¬

Ward

York

Tracy* Inc., 120 South La Salle

general

2003

—

4s-4V2S-5s,

consol.

Baird

McLaughlin,

York: 5, N.

New

Street,

Wall

One

Reuss,

navox

the;

and

South Spring Street,

14, Calif.

Lipe-Rollway Corporation—Cir¬
cular on situation—Derrick, Wad-

Liberty Street,

dell & Co., Inc., 55
Frank

the

New York City.

C. E. Unterberg

Dunne

association,

principal

the

speaker, Patrick B. McGinnis, au¬
thority on railroad securities and

of Pflugfelder,- Bampton
Rust, discussed the future of
trailroad finance.
*
jy
partner

discussing

Richard

gathering

Abbe,

terberg pointed to the work and
objectives of the Association.
;

) A silver tray, with appropriate
inscription,
was
presented
to
Frank Dunne of Dunpe & Co in
recognition
of
his
outstanding
service during his eight years as
president
Mr.

of the organization
in

Unterberg

Association.

behalf

the

guests were members of the Se¬
and

curities

Commis¬

Exchange

sion, financial editors, officials of
various

important

securities

ex¬

Post AVar

board

York 4,

New

Earnings

and

Debt

for

Sea¬

Possibilities

Company—Circu¬

written

Mallory

Analytical
Rouse

Seaboard

Inc.—

Co.,

RR.

Memorandum—Buckley

Rothchild

2, Pa. '

Brothers,

been

Co.,

Mark

Schenley

Preferred

United

Midland

ciation of Securities Dealers,

Broadway, New York 6, N. Y.

Ilaupt

Fifth

articles

they have
Chronicle—

Merit, in

Distillers

Avenue,

care

Corporation,

New

York

N. Y.

Skjlsaw, Inc.—Analysis—W. J.

railroad executives.

Banigan & Co., 50 Broadway, New

circu¬
Reilly & Co., Ill Broad¬

Moxie

Co.—Descriptive

lar—J. F.

Vallely Willi

York

New York 6, N. Y.

way,

4, N. Y.

Standard

randum—Otis

John Nuveeu & Co.

National

Stock

Monthly

City.,

Co.

—

Memo¬

Terminal

Co.,

Tower, Cleveland 13, Ohio.

and

Quotation Service — Free
made by National
Quotation Bureau, Inc., <46 Front

CG 1234-5
York

New

current

Galvin

Lincoln

Company—Discus¬

York

Square, "New

Wire, Com.

Mfg. Co. Com.
Ptg. Co.

Parker

speculative possibilities at
levels—H, Hentz & Co.,

Hanover

Steel

Central

6-1963

Com.

Appliance,

Snap-On Tools, Com.

Woodward Governor, Com.

Paul IL Davis 6: Go.

C.Lfilore Director

Established

(

[10 So. La Salle St., Chicago 3
*

(Continued from first page)
voted a resolution of appreciation
for the services rendered by Mr.
Symonds.

;

.' ■,L

chairman

of the

ecutive
Neill

member

committee

Libby,

the

of Libby,

chairman

Indianapolis, Ind.

Rockford, III.

[

the

ACTIVE TRADING MARKETS

National Terminals Corp.

Chicago Corporation, a

and

director

Teletype CG 405

Tel. Franklin 8622

Mr. Glore, in addition to his

partnership,

1916

Principal Stock Exchanges
Chicago Board of Trade

Members

Common

Preferred

ex¬

Mc¬

Franklin County Coal Corp.

of the

Common

tor

dent

and

Gas

Tennessee

the

Transmission Company,
a

director

Preferred

Central & South West

and

and presi¬

the

Utilities

208

Common

stock

South LaSalle Street Corporation.
He is

Assurance

Interstate Aircraft &

director of Continental

Company,

Continental

Engineering Corp.

Company, Montgomery
Ward & Company, and the Studebaker Corporation.
Mr. Glore is also president of
Casualty

Common

ADAMS & CO.

the. board of trustees of Lake For¬

Academy, and a trustee of the
Art Institute of Chicago and of
est

Stoker

wire

executive committee and a direc¬

Ill

Co.,

—

running in the

write

350

York

sion of

tor

Schenley Distillers Corporation
—Brochure

Street, Philadelphia

Walnut

New

—

status—
52 Wall

present

Street, New York 5, N, Y.

4, N. Y.

Merchants Distilling Common—
1529

II.

the

;

New York

—

executive committee and a direc¬

All-Florida

Resumes of

discussion — Steiner,
Co., 25 ; Broad Street,

request—Pflug-

New York 6, N. Y.

way,

Wm.
J.
Broadway,

discussed

Of Stewart-Warner

lar

Chicago 3

0,-

8800

Direct

Broadway,

120

felder, Bampton & Rust, 61 Broad¬

Street, New York 4,
and Russ Building, San
Francisco 4, Calif.
R.

New York 6, N. Y.

Mericka & Co., Inc., 29

Railway

Field Bldg.,

Randolph

Broad¬

Ill

Co.,

Y.,

Broad

Analysis—Ira

Edward

New

changes and of the National Asso¬
and

Place,

invited

the

Among

statistical

Meeds,

Reduction

Company —-Timely
report—Kaiser & Co.,

Magnavox

brief address, Mr. Un¬

Reilly

—Prospects

Possible Excess Profits Tax Li¬

New York City.
■

New

Association

Traders

York.

Bissell

Co., 208 South La Salle Street,

Chicago 4, 111.

ity

able to dealers—Fred W. Fairman

mittee and President of the Secur¬

way,

ability for 1945—Circular—Laird,

statistical information, avail¬

vice chairman of the dinner com¬

Rose

Peoples-Pittsburgh Trust Com¬

Co., 50 Broadway,
N. Y.:;V;;.C

Company—Brochure

Magnavox

situation—Hoit,

pany—Analysis—W. J. Banigan &

111.

and

—J.

White Motor
;

HICKEY & CO.
i

Wellman Engineering Company

enviable

post¬
war
outlook and earnings possi¬
bilities—Comstock
&
Co.,
231
South La Salle Street, Chicago 4,

newly

this

Wellman Engineering—Circular

„

Troster, 74 Trinity
York 6, N. Y.

Long Bell Lumber Company—
Memo

Jy Clarence

E.
Unterberg,
the
elected president of the
Association, Was introduced to the

Los Angeles

Coca-Cola—Discussion

Panama

■

647

Co.,

Common Stock

Sons; Riley Stoker; Alabama

Moxie; and P. R. Mallory.

of
leverage—

through

Marshall

GALVIN MFG. CO.

Corp.; Electrolux; Brock-

appeal

speculative

common

Mills, Inc.; American Hardware;
Douglas Shoe; Hartford-Empire;
Maine Central Pfd.; Purolator;

—Study of situation showing fav¬
orable situation of the preferred
stock

"A";

Light

Motors; Scoville Mfg.; Bird

way

York 6, N. Y.

Maxwell,

Power

preferred; Majestic Radio; Mag¬

Pacific-American Investors, Inc.

the

Laboratories

Mont

Street, Chicago 3, III.
Lehigh Valley RR.—Circular on

Also available are

5, N. Y.

Great American Industries; Mas¬

study — GoodCo., 115 Broadway, New-

INQUIRIES INVITED

late memoranda on:

Analytical

—

body

circular—Rogers

pany—Detailed

term possibilities
speculatively inclined-

Co., 120 Broadway, New

sachusetts

mon

Minneapolis

of long

for those

Oxford Paper preferred & com¬
Iowa

Milwaukee

Piece Dye Works—Dis¬

United
cussion

Broadway, New York 5, N. Y.

field

Boston

Co.—Anal¬

ysis, for dealers only—C. E. Un¬

Chicago 4, 111. ...00y0:d

19th anniversary dinner

At the

Incorporated

New York

Chicago
Radiator

National

Lines, Inc., Com. & Pfd.

Publishers, Inc., Com. & Pfd.

•

(Continued from page 830)
Co., 208 South La Salle Street,

Principal Speaker

•

Corp., Com. & Pfd.

Com.

A.C.AIXYN*®COMPANY

Recommendations and Literature

Honor Dunne at Dinner

Company, Com. & Pfd.

Moore McCormack

lll'll'llllil^'lHlllllllllll'HIIilllllilllili'l'liliillHIIIIPIHIIIIIIIIIIIIIIIIIIIIIIIIlilllHIHIIIIIIIllllllllll

N. Y,

Milling & Elevator, Pfd.

Commercial Shearing & Stamping Co., Com.

Guenther Law

Incorporated

■

Collins Radio Company, Com. & Pfd.

Colorado
•

Albert Frank

St.

Luke's

Hospital.

231

South

La Salle Street

Chicago A, Illinois
Phone State 0101

Teletype CG 361

He lives in

Lake Forest. 111.

Bond
♦

(Special
...

The

CHICAGO,

Vallely
with

become
Nuveen

associated
&

Co.,

formerly

trading

department

Kindred

& Co.

For

of f\ the

manager

Edward

Barcus,

Cohan

Co.

and

years

011

"•

CHICAGO

rED
ELEVATED

CHICAGO

"
-

SHORE

AND

;
;

Paul

Inquiries on either side of the

Finance

Mortimer

John

Landsberg,

Illtmlen

low,

David

Page, Edward J. Shean

and

Edward C. Werle.

firm fromv.

0(00;

/•;

Public

634 South

Relations

Spring Slrool

d'Assern,
S.

Moffatt,

Bayard

Chairman;

Hoppin

Wilson.

and
;

Major B. H. Namm as advisor.

Joseph

H. CAL.

TEL. TRINITY 6345
PRIVATE

(Incorporated)

EAST

Bldg.
Bl<

39 South La Salle Street

LINCOLN 8. NEB.

30RN 0500
TEL. DEARBORN
WIRES

;

TEL. 2-3349

AND

WEST

Investment Securities and Institutional Financing

First National Bank
First National Bank

Ttttmotci
Illinois

CHICAGO 4, ILLINOIS

William
DIRECT

[

IJorl StOct £icLanyt
ft mid Chicago Stocl
Stoil <£icluny»
£tclany»
CHIGArn 4

;

FRANCOEUR & COMPANY

209 South La Salle Street
on

LOS ANGELES

market invited

Committee
Fred

;

ElU
Crijtteiideo
S Co.

Lud¬

our

FRANCOEUR, IVIORAN & COMPANY

LINES

*TH
NORTH

-.WAUKEE RAILROAD
MILWAUKEE

Frederick J. Roth, Chairman; H. Lawrence

Jones,

Announcing the change in the name
of

have specialized in
in trading the securities of:

Hughes.
Committee

Ltd.—

Tower, * Cleveland 13, Ohio.

JNES
CHICAGO SURFACE LINES

Prior thereto he

with A. C. Allyn &

Brooks,

many

•,

was

nal

Street, New York 4, N. Y.

Iron Mines,

Memorandum—Otis & Co., Termi¬

135

South La Salle Street. Mr. Vallely
was

Steep Rock

trial offer being

ILL. —Edward

has

John

Chronicle)

Financial

831

INDUSTRIAL STOCKS

Chicago South Shore & South Bend R.R. Common
..

,*fcJ4uLM«U^ JLie****,

000:'J:.^\'.':; We maintain active markets in

ADVERTISING

FINANCIAL CHRONICLE

THE COMMERCIAL &

yNumber, 4362 .•[

1urA tvn.v! flWrf -*M

COAS"

Chicago 3, Illinois

THE COMMERCIAL & FINANCIAL CHRONICLE

832

SEABOARD RAILWAY COMPANY

Chicago, Mil., St. Paul & Pacific Railroad Co.
■W

1st Mtge, 4s, 2014

...

Gen.
v

Bought

7';

Cons. "A" 5s, 1927

When issued

When,

Neto

Telephone REctor 2-7340

Bell Teletype—NY 1-310

Railway Co.

Dr. Calvin B. Hoover's Views

Railroad Securities

(When Issued)

New Securities

Despite the strong

Ernst&Go.

there

MEMBERS

Stock

York

New

other

and

Exchange

Broadway, New; York 5, N. Y.
Chicago 4, 111.

LaSalle St.,

designed to as¬

holders of the old stocks par¬

ticipation in the reorganized com¬

through distribution to them
stock.
Regardless of the
merit or lack of merit, of the bill
pany

new

it is doubtful even if it does pass
that

Offerings Wanted

PENNSYLVANIA

O'CONNELL & JANARELI
Broadway, New York

Telephone

•

Teletype

■

NY 1-2860

2-7610

than

lines

Erie,

Wabash, North Western, Western
Pacific, Soo Line, etc., where re¬
organizations have already been
consummated.
Moreover, the law
as drawn would not apply to re¬

Guaranteed Stocks

120

such

holders

RAILROAD

REctor

affect

will

few of the major reorganiza¬
tion railroads.
Obviously nothing
now
be done for the stockcan
very

organizations where the plan had
already been voted on favorably
by the creditors.
Thus, St. Paul,
New Haven, and Denver & Rio
Grande Western would apparent¬

The law would
also presumably not apply to Sea¬
board which is being reorganized
in equity rather than under the
Bankruptcy Act.
As far as
the public is con¬
ly be eliminated.

SEABOARD AIR LINE

RAILWAY COMPANY
TRADING MARKETS

Old and New

cerned the benefts claimed for the
new
legislation would presum¬
ably be confined mainly to stock¬
holders of Missouri Pacific, Rock
Island and Frisco.
With respect
to the last two named roads no

pretense has been made in current

Securities

Van Tuyl & Abbe
72
•

;

WALL STREET

NEW

YORK

I, C. C. plans even to make hold¬
ers of the mortgage bonds whole.
Law or no law it would obviously

difficult

organized

for old stock¬

company

Commission

the

when

holders

to find room in the re¬

feels that there is not even enough

equity left in the properties to
satisfy the claims of secured cred¬
itors.
The new legislation
will

Charles Jernegan Is

not

With Eastman, Dillon
to The

(Special

CHICAGO,

Financial

either,
that

Chronicle)

ILL.—Charles Jer¬

has become associated with

negan

Eastman, Dillon & Co., 135 South
La

Salle

was

Street.

formerly

Mr,

with

Jernegan

Riter

Co.

likely have any future utility

and Alfred O'Gara & Co.

from

it is generally conceded
now on judicial reor¬

ganizations will be supplanted by
voluntary plans such as that of
Baltimore

Ohio.

naturally be strengthened by the
war record of the individual roads

reorganization.

undergoing

now

These

have

roads

been

showing

the

cut

new

capital¬
existing at the time of fil¬
ing of the bankruptcy petition,
providing that that capitalization
capitalization

below

the

ization

does not exceed either the actual

investment in the property or the
valuation of the property fixed

by the Commission for rate-mak¬

ing

purposes.

Commission
would use the present criterion
of "normal" earning power to set
the new senior capitalization, and
would then just go ahead and cre¬
ate enough new common stock to
round out the new capitalization
to the required size.
In every
reorganization * promulgated
to
Presumably

date

the

Section

under

Bankruptcy Act secured creditors
to accept new common

have had

reason

why they

be eliminated in reorgan¬

ization.

The

new

Commission,

the

has consistently set
capitalizations
on
the
under

basis of past earning power

what

are

considered normal

eco¬

was

the

new

obvious1

the

that

stock

common

principle

Dr. Hoover's statement, as contained in the article on page
that "a successful pro-<$>gram for the expansion of world word "alone" in the conditioning
trade would have to be far more phrase "by itself alone," which
comprehensive than one which appeared in the introductory com¬
prescribed simply the removal of ment of Dr. Hoover's address.

tariffs," and he continued that
under present circumstances and
modern
conditions, lowering < of
protective tariffs by itself alone
would
probably simply not be
feasible.
Exchange controls, im¬
port quotas, bulk purchases by
Government, cartel arrangements
and

devices

other

"be more

and

important

controls

tariffs."

have

The

Wm. G. Roney & Go. to
Admit 2 New Partners
DETROIT, MICH.—Wm. C. Ro¬
ney

come

than

trade

"Chronicle"

Stock

are

is glad

for

the

omission

Exchanges, will admit John

Kingsley Roney and Roy W. Neil

to make this correction and

ogizes

& Co., Buhl Building, mem¬

bers of the New York and Detroit

barriers to

apol¬
of the

partnership

of March 1. Both

have been with the firm for some

tion

old

,7,"

of the earning
of the new reorganization
stocks

will

be discussed

detail, and more spe¬
cifically, in next week's column.
greater

Treasury interpretations of

Section 722 of the Revenue Act of
1942

priority will have to be
abandoned
or
new
,classes
of
junior common stock, with no in¬
dicated
earning
power * ex
the

stress

demand

the

will have to be created.
Many people seem to have lost

Read¬

& St. Paul

property to earn money, it merely
affects the ability of the company
to survive
to

earn.

the money it is able

Commission reorganiza¬

■

•

■

•

77%:
:

tion

plans reduced fixed charges
drastically and thus place the re¬
organized carriers in a position
where they should experience no
difficulty in meeting their obliga¬
tory requirements even under se¬
we

depression conditions.

come

down

the

little, if any,-earning
conditions

under

DYNAMIC ECONOMICS

New When

7'%7

|§

which

dilute

nebulous-

this

Demand

include:

Consumers 7 Goods,
Demand for

Agricultural
for Capital

Bought—Sold—Quoted

prepared

a resume

Automotive

Demand

Products,

Goods, Factors Influ¬

Growth and Decline of Industry,

com¬

power
would

Demand and Loss Leaders,

Production, Costs and Profits, and

Josephthal&Co.
Members New York Stock Exchange
and other Exchanges

A jew copies are still

Telephone:

further
earning

7 7

Adjustments of Costs..%
;
'

available. 7

■'■•}. \

'*»•-.:%

.hy.

•'

•

Descriptive circular
on

> Boston 9

New

York

■

Lehigh Valley Railroad
i

General Consol. As-A^s-Ss, 2003

of the
Circular Upon Request

SEABOARD ALL-FLORIDA"
are

available

Adams & Peck
63 Wall

Street, New York 5

BOwling Green 9-8120
Boston

Philadelphia

Tele. NY 1-724

Hartford

upon

Mclaughlin, baird & reuss

request

Members New York Stock Exchange

1. h. rothchild &
Member

National

specialists in rails

co.

Association

of Securities Dealers, Inc.

wall

street

HAnover 2-9072

;
y. c.

5 i

tele. NY 1-1293

ONE WALL STREET
TEL.

HANOVER

2-1355

18, N. Y.

request

Copies of which

•

;i-7

: ,500 Fifth Avenue

LAfayette 4620

BUY WAR BONDS

INCORPORATED

St.

THE ECONOMETRIC INSTITUTE
'

Telephone:

New York 5

REctor 2-5000'"; > 7

19 Congress

•- r-■

Price $5.00

120 Broadway,

BOUGHT—SOLD—-QUOTED

"The Present Status •

Gasoline, Demand for

Railroad
We have

for

encing Residential Building,-

Joint

To attempt

Roos%77;*

Charles F.

Chapters

have allowed full coverage

throughlegislation

When

new

mon stocks, however, we find that
by and large they will be able to

show

business

'%%%%'r" 7 y%. by 77 7 777'7 V

Issued Securities / '

for eliminating

general

plained in the pioneer work r

7; •;:-77;77J:-7>77;.-7'"

;7:

proving cases

ings. Techniques required are ex¬

Milwaukee

charges. '

effects

importance
in

conditions in reconstructing earn¬

Chicago,

sight of the fact that reorganiza¬
tion
proceedings have arisen
largely,
if1 not
entirely,
from
consistent
i n a b i 1 i t y
to
sup¬
fixed

studies

and the necessity

war,

justment of the capital structure
does not affect the ability of the

manager

trading department.

question

common

Roney

the unlisted

justified.

Mr.

time,

merely to allow participa¬
the new company by the
stockholders can hardly be

power

absolute

port

517, it

page

was

power

to receive some

now

of February

feasible.

537,

If old stockhold¬

also

"Chronicle"

University, had remarked in'an address at Cincinnati, Ohio, on Jan¬
uary 19th that removal of tariffs under present conditions is not

of their claims.'
are

the

subheading that Dr. Calvin B. Hoover, CED Econo¬

mist and Dean of the Graduate School of Arts and Sciences of Duke

This

ers

article in

stated in the

partial settlement

tion in the first place.

see

;;

stock in at least

should

Providence ;7

allowed

not

the

other- hand,

therefor

amendment

of old
fixed charges." If the roads in¬
dividually had. been' able to show
such earnings consistently under
normal conditions they would not
have had to undertake reorganiza¬

large earnings on their old stocks,
arid holders of these old stocks

Boston &

Bank¬
ruptcy Act the Commission would

vere

Support for the Hobbs bill has

Under the pro¬

nomic conditions.

posed

proposed amendment to the

The

Bankruptcy Act is
sure

So.

231

event, it appears
be considerable delay

will

before final action is taken.

leading Security and Commodity Exchs.

120

the likelihood of its ever becoming law.
likely that<^

being expressed as to

In any

Changing the Tariff

opposition of the Interstate Commerce Com¬

mission, the Hobbs bill, amending the Railroad Bankruptcy Act, has
passed the House and will now be considered by the Senate.
The
general feeling is that there will be even greater opposition to the
measure in the Senate than there was in the House, and strong doubts
are

•

■.

120 BROADWAY, NEW YORK 5, N. Y.

New York 6

Broadway

Members New York Stock Exchange

York Stock Exchange

Telephone—DIgby 4-4933

SUTRO BROS. & CO.

PFLUGFELDER, BAMPT0N & RUST
Members

Quoted

profits discounted.

and if issued

—

Seaboard

Sold

—

Complete Arbitrage Propositions on request.

■

Common Stock, No Par

y./r- '7,When Issued.

5% Part. Pfd., Series A, $100 Par
y

■1

;

Mtge. Inc. 4%sj 2019, A

Gen.

Railways Go.

•

Inc. Conv. 41/2S, 2044, B

Mtge.

Thursday, February 22, 1945 "

NEW YORK 5
TELETYPE NY

1-1310

Volume 161

THE COMMKT?CTAL & FINANCIAL CHRONICLE

Number 4362

S33

COM PAN Y

TH E M AGNAV□X

note '—From time to time, in this space,
there wilt appear an

article which

hope

STOCKS ARE TRADED ON THE SAN

will be of interest to our fellow A mericans.
This is number seventy-seven of a series,

FRANCISCO STOCK EXCHANGE AVAILABLE ON REQUEST

SCHENLEY DISTILLERS CORP., NEW YORK

ONE CJFA SERIES DF TIM ELY STATISTICAL REPORTS

COMPANIES

WHOSE

DIRECT

PRIVATE WIRE

Symposium

Co.

Kaiser 8.

It is just too

memsens
NEW YORK STOCK EXCHANGE

BR DAD

STREET

1500

SAN FRANCISCO STOCK EXCHANGE

SAN

NEW YORK 4

RUSS

BUILDING

FRANCISCO

bad that every

citizens does not have

our

NEW YORK CURB EXCHANGE

one

op¬

portunity to read

a symposium
just came to our desk. It is
entitled "Voluntary Self Regula¬
tion in the Tavern and Liquor

that

Slow But Sure

OUR

Although

the

Store."

Marquette

Pere

INVESTMENT

and the Oklahoma issues got away

REPORTER'S

slow start, investment

inter¬
misgivings on the out¬
It was viewed merely as a

come.

REPORT
Results of bidding for two large

issues brought out this week, to¬

In both

gether with the behavior of the
bond market itself, tended to con¬

the

those

the action of the two

than

issues in question, was
which the bases fixed

offerings had

on some

cent.

While interest

those

bonds of re¬

cent issue.

With

those fixed for the bonds being

The

marketed.

toward

trend

which

recognized key to basic
Some

sues

now

the

money

volume of

this

for

that

remark

business.

new

are

is¬

the

middle

the

month.

Power Co. is

first

They contend

due

mortgage

for

rate.

longer

inclined to take

range

view

the

market.
Each

the

new

field

recent

has

issue, where
been
subject to

markdown, it is shown, has had
the effect of stimulating interest
in earlier flotations by bringing
out

brisk

for

demand

such

bids

bonds,

30-year

with bidders" to fix

time past with poten¬

open

issue of $4,000,000 of new

that this has been the tendency
tial buyers now

March 6 Northern Pennsylvania

being bought for

moment.

There is also the

the coupon

March 14 will bring public of¬
fering by Marshall Field & Co. of
any unexchanged portion of $15,000,000 of new AYt per cent pre¬
ferred stock which will replace
higher rate issues now outstand¬
ings :
;
v. V-'
'
The
nental

de¬

market

scriptions.

following
Can

150,000

day

Co.

Conti¬

expected

possibility that

the Arkansas Missouri Power Co,
will market
of

issue of

$2,000,000
first mortgage, 29-year
during the month.
an

New

York

Power

large

Light Corp.

prospective

for next month

is¬

added to

was

Light Corp. filed the necessary
registration with SEC this week
to cover $55,000,000 of new securi¬
ties.
The company

approval

proposes,

the

upon

Commission

and the expiration of the usual

new

Offer

for competitive bids $50,000,000
of new 30-year first mortgage

bonds, the bidders to
rates vidiich

cent,

per

shall

and

name

not

the

exceed

It also

would

price

sell

$5,000,000 of
stock

common

with other funds to

Nia¬

redemption of

$55,000,000 of 3% per cent bonds
outstanding.

now

Trip to Coast

Andrew J. Lord, president of
Lord, Abbett & Co., Inc., 63 Wall
Street, New York City, is on a trip
to the Pacific Coast.

due

back

March

Cantor

Co.

The

been

New

Mr. Lord is

York

New York

City, to act as
dealer and broker in general mar¬
ket issues and special situations.
way,

Partners
and

are

Gerald Cantor

Futerman, general part¬
ners, and J. Behrens, I. Greenberg and J. Cantor, special part¬
ners; Mr. Futerman is inactive.

formerly
manager of the investment de¬
partment of Birnbaum & Co. Prior
thereto he was manager of the
real estate bond department of
was

Alexander Eisemann & Co.

Since

August, 1943, he has been in the
U. S. Army and saw active duty
in the New Guinea campaign.
Formation of B. G. Cantor & Co.

;

was

previously

about

reported

the

"Financial Chronicle" of Feb.

with

15.

liquor administrators and
including the military

authorities

keen

What

Price $280 Per

Hayden, Stone & Co., 25 Broad
Street, New York City, members
of the New York Stock Exchange
and other leading exchanges, will
admit Joseph E. Swan and Fred¬
erick

Thoben

the firm

partnership

March

Mr.

Thoben, recently with E. F, Hutton & Co., in the past was asso¬
ciated with Mr, Swan as a partner

periment of Prohibition
with such

seeks

AVAILABLE

undergoing

Bonds

Certificates

Deposit should be

three

tendered,

together with letter of transmittal (plus 55^ transfer tax on
each bond) to the Depositary, Bank of America National
Trust and Savings Association, Los Angeles 54, California,
who are authorized to accept these bonds on our behalf.

men

program

planning
to

its

house,

ex¬

add

Unfortunately,

today

ex¬

firm

City

New

contact

salesman, receptionist

man,

other

Box A 22 Com¬

mercial & Financial Chronicle,
Park

Place,

New

York

"to

try it again." We wish

that they too

would have

an op¬

portunity to read this symposium.
Then we'd like to take them

personally conducted tour for

wide

an era

which ended

little

over

to go

of that ever,

again. Take

me out

ever

cf here. I want

back to—today!"
V

MARK MERIT

Of SCHENLEY DISTILLERS CORP.

FREE —Send a postcard or letter to
Schenley Distillers Corp., 350 Fifth Ave.,
Y. 1, N. Y. and you will receive
a booklet
containing reprints of earlier i
articles on various subjects in this series, s
N.

broker-dealer

registration
Co., New York City,

The

company's registration had
suspended on Jan. 18 for

been

transactions
count

executed for the

the

Public

Bond

Salesman

Bond

tion for New York County.

suspension

was

The
made because the

commission said frauds

were pos¬

sible because of inadequate super¬
vision on the part of the cohipany
and
was

the

handling of the account

entrusted to order clerks who

responsible

any

with

selling

Write essential details in strict¬

confidence

Chronicle.

Box

C-l,

Our staff knows of

this advertisement.

ORDER CLERK

accus-

Salesman

WANTED

Active, unlisted firm
services

"Street"

wanted

can use

with

trader

clientele. Close

Good

nished. Opportunity.

Box

Replies

confidentially.

Box

20j, Commercial & Finan¬
Chronicle, 25 Park Place,

cial

New York 8, N. Y.

Write

salary.

co¬

stating

treated

by high-grade

over-the-rcounter firijn.

operation and live leads fur¬

ac¬

Administra¬

acquaintance in

institutions and trust estates.

est

visit to the "chamber of horrors"

person.

tomed to dealing with large

sold at inadequate prices without

N. Y.

individuals.

York

inside work.

broad experience in

February 21, 194.'

years

TRADER
2.

New York 18, N. Y.

have with

undoubtedly sincere,
and well-meaning folk who would
some

the field.

500 Fifth Avenue,

over-the-counter

An experienced bond trader
with

this

country!

supervision
1.

glad to furnish additional informa¬
supply necessary letters of transmittal

! MACHINE TOOL AND EQUIPMENT CORPORATION
| Adolf Friedeberg, President .>
Fred Friedeberg, Secretary

with

New

Jersey

organization,

follows:

We would be
tion and

with

established, widely ad¬

pansion,

tried

has been reinstated by the Securi¬
ties
and Exchange Commission,

securities field, desires position

men

vertised municipal bond

Offer Expires March 23, 1945

was

dismal failure

in J. E. Swan & Co.

Gentleman

BOND HOUSE

A well

Bond

far cry from those late,

lamentable years wherein the ex¬

Registration Reinstated

additional

Deposit therefor

community relations.

of Emanuel &

Mortgage 5% Thirty-Year Gold Bonds
Certificates of

clergy. This

perception of the importance

of sound

have

To Admit Swan, TMen

Purchase All the Outstanding

the

We are quite sure
they would say, "Enough. Let's

Haydeu, Stone & 0s.

perience

First

and

'evidence is clear-cut and proves a

eleven years ago.

12th.

Valley Railroad Company

intensive

by both organizations and

others,

EXPANDING MUNICIPAL

Yosemite

evidence

with

The

We Offer

use.

symposium's pages are crowd¬

Mr. B. G. Cantor

pro¬

means

cooperate in every possible way

has

not

gara Hudson Corp. (50,000 shares)
and apply the combined proceeds,

Lord

which

the alcoholic beverage business to

above 102%.

additional

are

individuals in the retail branch of

Opens in New York

new

3 Vss

this

carry

abuse, and to

means

efforts

B. G, Gantor &Go.

formed with offices at 61 Broad¬

debentures.

period of hibernation, to

business is scheduled for around

were
new

on an

some

definitely
month, an

The bulk of such prospective

commentators

appreciation marketwise rather
than on the basis of value fixed
the

deal

cards

Quebec five

conditions.

moved to

one

the

$15,000,000 of Province of
year 2s, just regis¬
tered with SEC, being scheduled
for Feb.
28, it now looks as
though March will develop a fair

corporate yields, it was
noted, has been in keeping with
the persistent rise in the gov¬
market

$19,000,000 of new first mort¬
gage
bonds and $3,000,000 of

the roster when New York Power

issue of

lower

ernment

Co. is slated to open bids for its

serial

who

men

temperance,

intelligent

March 19 Laclede Gas Light

Another

March Looks Busy

;

in line with

total

preferred stock, probably with
4 per cent dividend rate, and

suer

ward price adjustment bringing

Phone LD-159

CALL

of five bidding groups.

ter descriptions was toward up¬

yields

the

Oklahoma Gas bonds drew

The tendency among the lat¬

their

competi¬
tive sale of Pere Marquette was
not seemingly pronounced,
only
two
groups
entering
bids, the

the effect
for

to -yield

approximately
3.33 per cent, while Oklahoma
Gas & Electric's $35,000,000 of
new
30-year 2%s were priced
at 101 to yield about 2.70 per

bankers

Home Office Atlanta

Marquette's $50,000,000
of 35-year 3%s were priced at

were a trifle slow in moving out.
But, what interested market ob¬

which

would

Pere

the Oklahoma Gas & Electric Co.,

BONDS, STOCKS, COMMODITIES

demand
from
quicken

that

sources

100.92

posium the

responsibility tell what they

mote
•

with them

doing to prevent over-indulgence,

BROKERS OF
Private Wires

word

social responsibility. In this sym¬

INVESTMENT SECURITIES

said that

was

that

The dispensing of and sale of alco-.
holic beverages carry

UNDERWRITERS AND DISTRIBUTORS OF

were

ultimately.

True, the Pere Marquette bonds
those offered yesterday for

investment

cases

expected

and

buyers

big
insurance
companies
showing interest and it was

were

vince the rank and file in under¬

writing circles that the investment
list is
definitely headed for a
lower yield basis.

servers

which

situation

being forced to adjust their views
of values and yields..

note

"voluntary."

BANKERS

MEMBERS NEW YORK STOCK EXCHANGE AND
OTHER LEADING EXCHANGES

ests had no

Please

experience.
21,

Commer¬

cial & Financial Chroh-

icle,

Park

New York 8,

Plade,

N. Y.

Thursday, February 22, 1945

\%>X-'

SMtffi

Patrick
-*~P. J.

Smith; Barney & Co.

Executive Secretary of the New York

Alfred E. Loyd,

Bampton- & Rust
Co.^-Irving D. Fish,

Pflugfelder,

McGinnis,

Steindler, P. J. Steindler&

Security

Dealers Association.

Eastman, Dillon & Co.

Chet de

Willers. C.

•

i.4.

•

Richter, Scherck, Richter & Co., St. Louis—John
Stein Bros. & Boyce, Baltimore—Fred Barton,

Abbe, Van Tuyl & Abbe.

Hank

O'Neill,

de<Willer^& Co.—Colonel Oliver J. Troster—Richard F,
*
*
'
>
•
,,

Jack P. Germain, J. Arthur Warner

Towbin, U.S.N.R.
Wall Street Journal.

& Co.-—Lt. Relrror*

Lebenthal, Lebenthal & Co.—Dick Meyer,

Louis

mmmsf

z-vff

mMmWMMMM

mwm

fZ'

VT-li:

i#8l
Frederick

mmm

Gearhart, Jr.,

Kobbe, Gearhart & Company,

SEC—Joseph Faroll, Joseph Far oil & Co.

Inc.—Wm. J. Cogan;

Harry Lyons, Allen &
Wien & Co.

': '

Company—Ed. Becker, Reynolds

&. Co.

Mel Wien, M. S

Mmwm

it'

:il
"1-

mm
-

F
&

<& Co., Incorporated—M." H. Townsend, Bonner
Commercial & Financial Chronicle—Harold B. Smith,

Krayer, Harriman Ripley

Gregory—Edwin L. Beck,

Collin, Norton & Co.

to~£JrtrnuTrmc<fW

Volume 161

Number 4362

Nineteenth

F. H.

Roller, F. H. Koller & Co., Inc:

Robinson, Schioabacher & Co.

:-"y

kW*?#

Edward
.

■

H. *
•

Anniversary Dinner

Abraham M. Metz, Guest
Walter E.

E. E.

Ben

Lebenthal, Lebenthal & Co.—Edwin Posner, Andrews, Posner & Roths¬
A. Coleman, -Adler, Coleman & Co.—Frank Gernon, Carl M. Loeb,
Rhoades & Co.
'V/^
:

Brooks, W. H. Bell & Co., Philadelphia—C. Richard Suter, J. Arthur Warner

H. King, King & King—Martin I. King, King & King—
Kelly, J. Arthur Warner & Co.

McClure, Stein Bros. & Boyce, Baltimore, Md.—'Walter Floersheimer, Sutro
Hall, Pflugfelder, Bampton & Rust;'
■.

child—John

Schult, Jr., Bonner & Gregory.«

Co., Philadelphia—Samuel

Joe

Pett, R. H. Johnson & Co. —- Murray Barysh,
Breen, R. H. Johnson & Co.

Louis S.

Roland Betts, Knickerbocker Fund—Howard Von Dehsen, Keystone Fund—Wm.

Lester

Ernst & Co.—Ned

Bros. & Co.—Frank

Roos, MacBride, Miller & Co., Newark, N. J.—Frank H. Becker, Guaranty Trust Co.
—Peter H.

Ben E. Lindsly, SEC-

'•

John Hawkins, Amott, Baker & Co.—Harry R. Amott, Amott, Baker & Co.—E. H.
Bronkart, Amott, Baker & Co.—Geo. N. Lindsay, Swiss-American Corporation.

<le

—

Tellier, Tellier & Co.

v
,

Lou Walker, National Quotation Bureau—Frank Scheffey, NASD; New

John J.

tork—

O'Kane, Jr., John J. O'Kane, Jr. & Co.—Harry Beebe, Harriman Ripley. & fo.,

inc.—C. E. Unterberg, C. E. Unterberg & Co.

Thursday, February 22, 1945

THE COMMERCIAL & FINANCIAL CHRONICLE

Held

February ISth At The Waldorf Astoria

Schram, President New York Stock Exchange
Unterberg, President New York Security Deal¬
Association.
'••.!•••
*

Emil
—C.
ers

Ward

Moore, Chase National Bank—Henry Bruns, H.

G. Bruns & Co.—Geo.

Hunt, Starkweather & Co.

F. J. Rabe, F. J. Rabe
Joyce, Kuehner & Co.

Mitchell &

Co.—Hanns
•

Kuehner,

;

Co.'s Table

Herzog & Co.'s Table

H WM ilPl I SSf'y:

Geo.

Textor, Marine Midland Bank & Trust

pany—Tvacy Engle, Buckley Brothers, New York

Mmm

Johh H. Stevenson, Ward & Co.—Walter Nester, The First Boston Corp.—A1
Malloy, The First Boston Corp.—Bert Seligman, Ward & Co.—Bob Whitbeck, The
-

First Boston Corp.

Edwin L. Beck,

Co.—Herbert Allen, Allen & ComCity.

Commercial & Financial Chronicle—B. W. Pizzini, B. W. Pizzini
& Co.

o.—Frank Dunne, Dunne

r*r
*

9RBRMR
'

Hines, Schwabacher & Co.—Samuel Weinberg, S. Weinberg & Co.—J. A1
Williams, J. Albert Williams & Co., East Orange,. N. J.—Ralph T. Tyner, Jr,
Peabody, Tyner & Co., Inc., Mt. Vernon, N. Y.
John

bert

Volume 161

THE COMMERCIAL

Number 4362

FINANCIAL
&
CHRONICLE

Attendance A Record At Dealers Get-together

J. F. Reilly, J. F.Re'lly & Co.—H. H. Van
Meter, Allan N. Young & Co.—Samuel
Magid, Hill, Thompson & Co.—Irving Ehrlich, Hill, Thompson & Co.

H. Fredericks, Ward & Co.—M. F. Klein, Ward & Co.—M.
Silver, Empire Realty
Trading Corp.—N. Sims Organ, Ward & Co:

Joseph G. Connolly, SEC—Allan MacDuffie, SEC—H. Victor Schwimmer, Guest
Currie, Jr., Troster, Currie & Summers.

Elmer

Meyers, B. W. Pizzini & Co., Inc.—Frank Reynolds, Albert Frank-GuenO'Connor, L. F. Rothschild & Co., Rochester, N. Y.—Eliot Hall
Sharp, The Investment Dealers Digest.

—James

ther Law & Co.—A. J.

the

same

Say Yalta Conference

Ilf Prolongs War i§§
Socialists

Charge That the "Unconditional Surrender" Edict of Big
Hope of a German Revolt Against Nazism. Hits "One¬
sided" Russian Annexation of One-Third of Poland.

ment

that do not accord with the freely

to them"

expressed

concerned."

Big Three conference in the Crimea will "tend to make
speedy and certain the arrival of the next war," charged the
Socialist Party in a statement is- ^
Again three men have met to
sued on Feb. 16 by its national
chairman, Professor Maynard C. decide in secrecy the. fate of two
And again the two bil¬
Krueger of the University of Chi¬ billion.
cago,
and
National
Secretary lion have little cause for rejoicing

Charter pledge

of New York.

Harry Fleischman
"The
the

decisive

most

failure

Yalta conference

fusal

take

even

was

its

of
re¬

first step

the

in what lies in store for them.

will

shorten

toward ending the

little;
But

war," declared
"It of¬
fers no hope that a democratic
German
revolt
against
Nazism
would be met with sympathy on
the part of the Allies. Instead

reached

decisions

the Socialist

spokesman.

some

tend

certain

this

the

arrival

touching

faith'in the ignorance of the pub¬

lic," added Krueger and Fleisch¬
"could at the same time
agree to one-sided Russian an¬
man,

nexation of
reaffirm

lantic

third of Poland and

their

Charter

belief

the

which

At¬

condemns

war.

The most decisive failure of the
Yalta

that
a

the

conference

its

was

step toward

It offers

war.

refusal

hope

democratic German revolt

against-Nazism would be met with
sympathy on the part of the Allies.
Instead the Big Three repeat the
bankrupt slogan of unconditional
surrender,
which
has
already
lengthened the war. This fact be¬
comes

even

recall

that

ironic when

where

unconditional

the

state

such

Churchill

condi¬

intervention

means

have

Greece, where "to establish condi¬
tions
of internal
peace," he
slaughtered thousands of Greek
troops and installed notorious fas¬
What it

cists in office.

Stalin

have

seen

where Russian troops

means

Poland

have hunted

down, imprisoned or executed the
members

Polish

the

under¬

ground, in the name of a puppet
government.
The Crimea conferees have

nounced

that

the

Lublin

an¬

"Provi¬

sional Government" is to be

What

changes that do not
the freely expressed
wishes Of the peoples concerned."'
The
Socialist leaders
insisted

surrender, has been applied, as in

degree of independence the re¬
sulting government will have can

Italy by Churchill and Roosevelt

and

be formed in Moscow and operate

has

meant

that the Yalta decisions, were "a

power

program for World War III," and
warned that while "sustained pro¬

cists!

people
everywhere" would be needed to
change it, the alternative would be

have again reaffirmed their "faith
in the principles of the Atlantic

will

mean any

Charter."

and

unfettered elections" held in

^misery and

the Charter are now for the first

'territorial,

accord

with

test

from

liberty-loving

war

for decades to

come."
The

the

Balkans

the

continuation

of .Fascists
;

by Stalin, it

and

near-fas-

Rooseveit, Stalin
But

and Churchill

their violations of-

time included with their'affirma¬
text

Professor

Fleischman

the

statement

Krueger
follows:

and

Mr.

tions in a.
men

with

single statement.
a

Only

touching faith in.the

ignorance of the public could at

seen

from the fact that it will

the

elections"

under

hold

these
more

Powers also

principles in

the

Crimean

cheese

the

And the peoples

mpusetrap.
the world

of
of

expected to be nice.

are

The conferees
unconditional

announce

that the

surrender

terms

will not be made known until the
final defeat of Germany.

Perhaps

the .clue to this strange silence can
be found in the fact that, while

stating that they have agreed on
enforcement of

the

terms

imposed, they nowhere claim
have
agreed on
the terms

themselves!

John T. Von der Heide has

Stock List of the New York Stock

Exchange in favor of

a post on the
Georgeson &
Co., 52 Wall Street, New York
City, specialists in the preparation
and presentation of corporate pro¬
posals and in the broad field of

executive

In recounting some of his ex¬
periences on the Exchange dat¬
ing back to 1918, Mr. Von. der
Heide said it was astonishing to
learn how many stockholders fail
to discharge their duties as re¬
sponsible investors. The difficulty,

for World War III
has been presented both to the
people of the United States and of
the world, as well as to the United
Nations,
conference
which
has
program

been

summoned

Francisco

meet

April 25.

San

To change

it will be difficult and will

require
protest
from libertyloving people everywhere; to ac¬
cept it will assure misery and war
sustained

for

decades

staff

stockholder relations.

said 'Mr.

re¬

linquished his position as Assist¬
ant Director of the Department of

come.

Von

der Heide/ is too
apathy on the part
of management in neglecting the
importance of presenting the facts
to stockholders in interesting rea¬
sonable form. The responsibilities
often

due

management

and

ment

stockholders

stockholders
to

manage¬

becoming increasinglymore important as we see
democ¬
racy in finance adding day by day
are

to the number of investors in our

great American corporatioi

Peter Boss

Printing
Company Formed in NY

New Haven
Interest

Payments

Pursuant

United

States

authority

the

District

than the "free

has

will

pledge them¬

selves to "consult the other United

Nations' and

statement

declaration

Yalta?

and

circumstances

which

Soviet, "Union Itself;

The

Teheran

With fieorgeson & Co.

not

Court of
formerly of National
Quotation Bureau, Inc., New York Connecticut, funds will be avail¬
able on and after March 1, 1945,
City, has formed the Peter Ross
Printing Co. with offijres at 132 for the • payment of interi :st on
West 22nd Street, Nev/York City. certain• bonds and debentures of
Mr., Ross for the past eight years the New York, New Have a and

under the supervision of the Red
Army and the GPU. Nor does it
seem likely that the "free and un¬

fettered

govern¬

were

"re¬

organized" by adding to it "other
Polish democratic leaders."

future

not "of direct interest

conference

seen

and

John T Von derHoide

their

because

judgment

tions require."
What

the

that the Poles

consulted

satellite

their

the

all

form

Axis

former
where

well prolong it.
that they will
more
speedy and

ending the

with

even

may

to take even the first

men

war

which has already lengthened the

"Only

Crimea

certain

make

the

the
Big Three repeat the bankrupt
slogan of unconditional surrender,
war.

questionable whether any of the

to "respect

peoples to
government
under which they will live."
This
pledge is specifically reaffirmed—
and then interpreted as justifying
intervention by the Big Three "in
any European liberated state or
right

choose

were

The

to ex¬

reason

pect better observance of the At¬
the

boundaries

Nor is there

lantic

The

of the peoples

wishes

Was

eration."

Poland, and reaffirm their belief
in
the
Atlantic
Charter
which
condemns
"territorial
changes

Three Oilers No

time agree to one-sided I rope when matters of direct in¬
of a third of terest to them are under consid¬

annexation

Russian

provisional authori¬

ties, of other governments in Eu-

Peter Ross,

been

Total.interest

manager

of the quota¬

Hartford RR.V

tion department of

National Quo-

merit will approximate

tation.

ecutive

Prior thereto he

Secretary

was

the

Ex¬

New

coupons

pay-

$7,929,769

due between. May

1942 and April 1, 1943.

York Security Dealers Association

will be made at

from 1929 to 1938.

New York.

Pavment

Irving Trust Co.,,
\

Ohio Municipal
Standard Stoker Co.

Steep Rock Iron

are

some

by State banks.

ments

Request

OTIS & CO.
Tower

during
the
past
10
years. Nation¬
days

189»

Cleveland 13, 0.
Bell Teletype

Phone

CV 496-497

CHERRY 0260

than

(Incorporated)
Terminal

for

faulted

al banks need

consider

not

past defaults.
State

Watch, Com.

Gruen

cannot

banjts
Sport Products

legally

Whitaker Paper

revenue

buy

Philip Carey Com. & Pl'd.

in Ohio or out,

Gibson Hotel L. T. C.
Income Bonds, Pfd. & Com.

without

per¬

mission of the

W. D. Gradison & Co.
Members

Stock

Yorlt

New

N ational

Y. Curb Assoc.

Exchanges—N.

Building

Terminal

Dixie

banks

CINCINNATI 2
Tele. CI €8 A 274

Tel. Main 4884

dent of Banks.

J. Austin White

can

buy up to 10% of

their

capital and surplus in such reve¬
nue
bonds without mentioning it
to

anybody.
State

legally

buy general obligation municipals
outside Ohio exceeding in amount

DIAMOND ALKALI
COMMON

subdivision.

Request

obligation bonds of any mu¬

nicipal.
State

buy

Building

CLEVELAND

Teletype
29

least

have

Stock Exchange

Members Cleveland

NEW

YORK

political subdivi¬

banks

Union Cent.

Bldg.

CINCINNATI
Tele. CI 150

Tele. CV 174

legally

elsewhere.
national

banks

knowledge,

our

have

such

re¬

State

banks

cannot

legally

buy municipal bonds outside Ohio
if the net direct debt of the sub¬
division (arrived at in a
manner

proper

that

not

may

technical
allow all

such re¬

banks have no
-•

It may very

t^e asked why the Legis¬

CI 494

Cincinnati

Again
Gn Advisory Board of
pointment

AIB Cleveland

Chapter

To Hold Dinner
William
Underwood, Chairman of the
publicity committee of the Cleve¬
CLEVELAND, OHIO

—

land Chapter,

American

Institute

the annual
dinner will be held Saturday at
the Hoftel Statler.
Banking,

announces

Pillsbury Tax Analyst
For National City Bank

dustrialists to

Fenner

—

Beane,

was

Guy W.
Pierce,
elected
Stock

President of the Cleveland

the
45th
annual
Mr. Prosser, the only

Exchange
meeting.

for; the post, has been
Exchange's pub¬

Chairman of the

relations

lic

which

committee

helped develop the modified spon¬
sorship

plan

stook

last year.

the

there

meeting

attended

sentatives

late

;

dinner

adopted

Following
was

by repre¬

Cleveland

Under the
sponsorship plan, members issued
invitations

officers

compa¬

nies whose stocks are listed on the

local

board, inviting them to the

five

large

the Indus¬

District

was

announced

Feb. 19 by President Ray M. Gidney

of the Federal Reserve Bank
Cleveland.

Members

the

committee, which recommends
to whether
serve

not the Federal Re¬

Bank should make

indus¬

Hood,

•

Finley

Co.,

Jackson

Webber,

Curtis.

Beadling & Co. of Youngstown

business

and

finance,
din¬

the guest speaker at the

He recalled

ner.

the

his

"old

other

William

experiences
Here since

invited

timers"

Mather, E. G,
Tillotson,
Peter
Fahey, E.
M.
Baker, M. C. Harvey, W. S. Snyder
and
Eugene S. Halle, the last
were

still

named

member

active

the Exchange

after

than 44

He is proprietor of Will S.

years.

Cunningham of Cun¬

ningham & Co., retiring from his
second
the

term

President, headed

nominating committee which

named four
elected

candidates, two to be

for

three-year

Norman

terms

Cole,

They

Trust

Theodore

Thoburri,

Hayden,
Miller & Co., and Alvin J. Stiver,
President

new

began

his

1916 with Otis

career

shortly after graduation
Kenyon College, where he

starred

football,

baseball

firm's

the

ing department three
there

remained

Co.,

he went to

and

later

until

1931

A. Pierce &

Pierce,

Fenner & Beane.
is

member

the

Cleve¬

land Bond Club, Cleveland Secur¬

Association and past
of
the
Optimist Club

ity Traders
President
and

national

the

Prosser

alumni

the

has

associa¬

War

Bond

Committee

Shaker Heights, Cleveland
the

past

four

suburb,

drives

night

Hospital.
E.

Finley of Finley &

notes

the

which

secured by

the interest
that, to the
loan may be

except

U. S. Government se¬

curities, the interest rate will be
1%%.

Mr.

the
V-k
for'l, to increase the number of
have proposed to split
outstanding common shares

tors

authorized

from

common

$10

share.

per
The

will

plan

submitted

meeting April

approved it is planned to

and if

place the new stock 011 a regu¬
lar annual dividend basis of $1
a

share.

Co.

are

candidates

for

was

and Treasurer.

Lincoln

The

has offered

LeVeque

group

purchase the

J
;

re-

maining 50% of the stock in the
amount

same

$755,000,
for the

for

building

45-story

paid

first half.

John

McWethy, manager of

office

Cleve-j

since

1940, has been
promoted to manager of the pa-|

per's Chicago office. McWethy, a
native of Cincinnati, came to the
Cleveland bureau in 1937.
will

ward
leased

for

special

correspondent;

"Journal"

had

been

staff

news

Ed¬

Jr., recently re-;
the Army.
He for-'

from
was

the

and

succeeded

Lally,

"Press"

the

and

Pittsburgh'

the'

member

Pittsburgh:

United

Press

prior

to that time.

(

President

firms,

Cleveland

Three

are

underwriting houses,
Blyth & Co., offering a
issue of $50,000,000 Pere Mar¬
51

headed by
new

later

and

elected President;1
Vice-President;
Law¬
rence D. Stanley, Columbus, Sec-;
retary, and James Huffman, Co¬
lumbus, State Director of Com-'
merce, remained as Vice-President

merly

annual

the

firm

Street

Macklin,

1,300,-

3,250,000 shares and to
change the par value from $25 to

000

directors

made

dealers,

security

Cleveland

Co.,
were

land

Standard Oil Co. of Ohio direc¬

Gordon

and

LeVeque

Macklin of Gordon S. Macklin &

the "Wall Street Journal's"

quette Railway 35-year first mort¬

John

Collyer

B. F. Goodrich Co. has announced

the company will construct a

new'

research

laboratory in Brecksville,*
about 20 miles from the-

Ohio,

company's

Akron operations and

located

between Cleveland and*
bonds. The Blyth group won
the issue on a competitive bid of Akron.
| ■Dr.
H.
E. Fritz, company re-'
99.71 on a coupon rate of 3%%,
search director, stated construc¬
an indicated average annual cost

gage

company

3.383%.

about

Hawley,
Shepard & Co., Merrill, Turben &
Co.. and Curtiss, House & Co. The
Cleveland

Ohio

houses

Columbus

Co.

are

also

par¬

ticipated in the underwriting.
(Officials of Pere Marquette an¬
nounced that the sale, which will
net the road $49,855,000, has clear¬
ed the way for refinancing first
mortgage debt, totalling $52,467,
President

335.

when completed

stated "refunding
will

effect

itself

Bowman

debt

reduction

$2,467,000. This will make total
of mortgage debt since

reduction

$14,535,000,

1942,

October,

6tis

Co.,

Cleveland, and

Halsey Stuart & Co. headed group
which
was
awarded $35,000,000
Oklahoma Gas and Electric Co.,

bonds

refunding
bid

Their

land,

and

were

100.02

was

for

will

work

be started

soon

possible.

statement issued by Mr,

Collyer

declared

"the

com¬

pany's

heavy responsibility in
war
effort, bringing addi¬

the

tional

demands

able
in

the

upon

re¬

division, make it advis¬

establish

location

new

laboratory
taxed.

decision

important

Brecksville

thorough

activity

facilities

The

this

present

are

over¬

locate

activity

made

was

after

consideration

2%s.

Ohio

Municipal

Price Index
Date—

Feb.

14. 1945_

Feb.

■/*■:

1.30'

1.47%

1.14%

.33%

1.31

1.48

1.15

.33

Jan.

1.33

1.49

1.17

.32

Dec.

13. 1944„

,1.34

1.51

1.18

.33

First Cleveland Corp.
Halsey Otis group.

Nov

1.36

1.53

1.19

.34

Oct.

1.35

1.53

1.18

> .35

Sep.

1.32

1.50

1.14

the

which

run

to 1975, re¬

equal amount of 33/4S due
1968.
A Lehman-Blyth group
an

102.1679

for

2%s.

1.31

1.49

1.13

1.31

1.48

1.15

.33

June

1.31

1.46

1.16

.30

May

1.31

1.46

1.16

April 12

1.32

1.46

1.17 H:.".29,

1.34

1.50

1.19

.31

...

.36

.30

Feb.

1.53

1.21

.32

largest

Jan.

1.40

1.57

1.23

.34,

paint-makers in the world, is act¬

Jan.

1, 1943

1.83

2.01

1.G5

Jan.

1, 1942— 1.92

2.13

1.70

.43

Jan.

1, 1941—1.88

2.14

1.62

.52

Jan.'

1, 1940-1 2.30

2.58

2.01

Jan.

1, 1939—

2.78

3.33

2.24

Jan.

1, 1938— 2.98

3.42

2.55

Co.,

ing as its own underwriter in the
proposed conversion of $10,248,000
of 5% preferred stock into a new
issue bearing a 4% annual divi¬
dend rate.
/ /
Holders of the present

have

the

5% stock
right to exchange their

stock share for share until Mar. 15.
not

Those

change

will

making

paid

the

will

decide

•Composite
lower

index

grade bonds,

SSpread

between

.36

.57

1.09
.87

for
20
bonds.
flO
tio high grade bonds.

high

grade

and

lower

grade bonds.

Foregoing

data

compiled by J. A. White

Cincinnati.

ex¬

$105

share, the call redemption price.
Directors

1.37

.36

Aug. 16
July

■vior.

Sherwin-Williams

number of other available sites."

& Co., Cleve¬

New bonds,
fund

Monday.

tion

22i/2%."

later

whether sufficient stock has been

Beadling Becomes Member
Of Cleveland Stock Exch.
YOUNGSTOWN,
E.
Beadling,

deposited to make the plan effec¬

iam

tive.

Beadling

OHIO—Will-'
president
of

Co., Union National1
Building, has acquired a'
on
the
Cleveland'
Stock Exchange. Mr. Beadling is
Bank

Co.,

single governorship for an un¬
expired term ending next year.

21/2%

extent

John

and Charles B. Merrill of Merrill.

Turben

rate

and

week in volun¬
teer work at St. Vincent Charity
one

Tower

Ohio.

& Co.,

bert P.

spends

se¬
due in

An 8-year loan,

1954.

Co-Chairman

been

American Steel & Wire Co.; Her¬

for

convertible

cured

3*/4%

its

trad¬

years

Merrill Lynch,

now

refunding

offered

organized

when

group,

National, which

William J. Mericka

Co.

and

bank

the

were

the stock in
Inc., owner of
Bldg., Columbus,

50%

AIU

the

Broad

Co.,
Central
National Bank and National City

are:

Ledogar,
Horner & Co.; Douglas P. Handyside, of H. L. Emerson & Co.;

acquired

50 W. Broad Street,

LeVeque
Cleveland

among

Otis,. veteran

A.,

Cleveland
was

President,

Ladds, President, National
Screw & Manufacturing Co.; Her¬
;
man
R.
Neff,
President,
The
CLEVELAND,
OHIO—George George S. Ride Co.; Daniel C.
13. Pillsbury, an Internal Revenue Swander, Chairman of the
Board,
agent at Cleveland for the past Columbian Vise & Manufacturing
nine years, has been appointed as Co., and Winthrop W, Withingf ax analyst, by the National City
ton, Vice-President, American
Bank, President Sidney B. Cong- Fork & Hoe Co. Each term is for
one year beginning March 1, 1945.
don announced.

Hornblower & Weeks and Paine,

tion of Kenyon.

trial loan, are:
Clifford

Ralston

banks

commercial

present.

Charles

from

in¬

Cleveland

II.

S. Halle

Will

Co.,

Maynord

Chairmen and Presidents

the

OHIO—Re-ap¬

serve

participating

Stiver

Co.,

Co., W. P. Quinn & Co., Cayne,

industry,

banking and finance.

The

Advisory Committee of the
Fourth
(Cleveland) Federal Re¬
serve

CLEVELAND, OHIO

Prosser of Merrill Lynch,

trial

Murch

pose

basketball.

CLEVELAND,

Saunders,

Prescott

for

Cleveland Stock Excha

financial

Cleveland Reserve Bk.

preferred stock or bonds.

Cleveland firms

arranged a $28,335,000 bank loan
Alleghany Corp. for the pur¬

Guy Prosser Pres. of

of Saunders, Stiver & Co.

Cleveland Men

had any

Bank

848)

page

the Board of Governors.

expected that the Legis¬
lature will be asked to eliminate

dividends

headed by Chase

Russell I.

W. E. FOX & CO.

MA 1627

(Continued

of the

It is

well

18 E. 4th St.

question of such laws gov¬
investments
by
State
banks, savings banks, insurance

Halle & Co.

National

secondary offering of 7,000 shares of Richman Bros, stock at $42.45'
share.
Richman Bros., a large clothing manufacturer, has paid!
on its stock every year since
1920.
The company never

per

The

erning

deduction from gross debt)

amounts to more than 10%

also took part.

The State Banking Depart¬ the turn of the century. He is a
ment tec,£ntly decided that State charter member of the Cleveland
banks cannot buy second mort-' Exchange, having been elected to
gage revenue bonds in Ohio or. membership in May, 189^). Among

this last restriction.

Members

bankers

striction.

Cincinnati Stock Exchange

ters?

in the financial district

(with no allowance made for
property being assessed even at a
small fraction of
actual value).

Inc.

than

operating under national char¬

assessed valuation of the subdivi¬

SECURITIES

stupid

are

such restriction.

sion

CINCINNATI

that bankers operat¬

were

Field, Richards & Co.

feel

Legislature

ing under State charters in Ohio

dinner.

cannot

striction.

Union Com. Bldg.
CLEVELAND

Ohio

restrictions.

other

State

county outside
population of less
than 10,000, nor of a city or town
with a
population of less than
1„000.
National banks have no
bonds

buy

SECURITIES

banks

such restriction.

Ohio that has

OHIO

National

years.

State

594

BROADWAY

bond of

division, or its predecessor sub¬
division, has been in existence at

INCORPORATED
Commerce

legally

cannot

banks

sion outside Ohio unless the sub¬

WM. J. MERICKA & CO.
Union

for

National banks

not limited in amount of gen¬

are

eral

Circular

surplus

and

capital

10%
each

the

candidate

cannot

banks

eral
Does

Superinten¬

Cincinnati

and

lature should not eliminate sev¬

bonds

(not
general
obligations) in
any
amount,

Land Trust Certificates

were

de-^

has

that

ESTABLISHED

and on the

is now in session in Ohio

Legislature

Co., and Cunningham & Co., managed an under¬
writing group, including nine other Cleveland houses, which made
McDonald

proposed changes in the laws governing invest¬
Consequently it is more than interesting to
compare some of the legal requirements governing investments by
State banks in Ohio with such requirements for national banks:
^
1.
State Banks cannot legally buy a municipal bond outside Ohio

agenda

Mines Ltd.
Memorandums

Ohio Brevities

Comment

AUSTIN WHITE

By J.
State

The

Thursday, February 22, 194S

FINANCIAL CHRONICLE

THE COMMERCIAL &

838-

Lincoln,

Chairman

the Board of Lincoln Electric Co.,
L.

other

LeVeque of Columbus, and
Cleveland associates, have

membership

well

known to

the Cleveland in¬

vestment business.

Volume

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4362

161

839

PUBLIC UTILITY STOCKS

Pacific Coast

We maintain

Securities
Orders Executed

the facilities of

PUBLIC UTILITY

system

Coast

market in the stocks of

our

direct private wire

our

especially equipped to

are

trade

on
,

Pacific

active

public utility companies and through

many

those

markets

various

offices

where
are

Exchanges

located.

commons

preferreds

Paine, Webber, Jackson

Schwabacher & Co.
York

Curb

Chicago
Wall

Teletype

Wires

Francisco

Monterey

Santa

been

NY l-92g

mestic

G« A. Saxton & Co., Inc.

/■

Tomorrow's Markets

hope

J-*.*-1

-..I'- i

■

with

Opportunities In Utility Securities

Primary bull trend reempha-

(Continued from first page)

sized by penetration

into new
Stops in issues
held should now be raised.
high ground.

1'?'

•'

;

!&.V

By WALTER WHYTE
The ink

hardly dry in

was

last week's column when the
up its skirts
for the heights.

picked

dashed

and

accomplishing this it managed to get through not only
the
previous obstacles but
that it

also established
still in

<•-!

••'

;U-r'.\ j'V
■

*
^v"

The

#
•

V" 5 -! }

was

discussed

Feb. i.

clearly

was

column

the

"Present action," said

extremely

"is

column,

tempting.

For

if it
immediate

even

doesn't show any

advance it minimizes the dan¬

ger of immediate decline." In
a preceding paragraph, in the
same column, I wrote: ". . .
the

only pessimistic! thing to
look for now is something

fquite obvious-—a general de¬
But

if it (the de¬

cline)

stops within circum¬
scribed levels, it should not
be

:}t

Since that

written the

was

market did little of

least

nature.

positive

twice

seemed to threaten to go into
<

decline.

This

threat

arose

time the averages ap¬
proached
a
previous high
point; It might be important

every

the

companies.

are

tected

failure
into

downturn
nied

reversal.

trend

either

those put out a few
also enters into the pic¬

accompa¬

goes

have

become

able

curities

attention
and

media

due

from

get

se¬

increasing

institutional

both

private investors.

In the background of

all of this
are
the developments of a dozen
years
which would be material
for a lecture in itself.
A great

other

improvement in utility

can

be attributed either

directly or indirectly to the pass¬
ing of the Public Utility Holding
Company Act in 1935.

one

for
inci¬

and

deal of elec¬

a great

A lot

plants which have been
two

will return to

three

shifts

single shift

opera¬

On the other hand,

tion.

tlje net.
i>e Considerably less, than

loss will
this

indicates

statement

there

because

plenty of manufacturing
plants through the country which
are

have had to close down

their

curtail

operations

during the war
because they could not get necesk
sary

deal of the

securities

aver¬

more than a point
In the former, aver-

down

so.

ages are

manpower

their

carry on

should

materials

made

clear, how¬

ever, that it is going to be a fairly

job to mfike

easy

up revenues

ways

this

followed

Seldom, however, does
such
a
rally carry stocks
above their previous highs.
It is this inability to pene¬
trate, followed by another re¬
action
which
usually goes
(Continued

page

854)

lost

effects

departments of

the

administration

this Act by the Securities and Ex¬

Commission
have been
very
beneficial to investors.
I
think it is possible to make this
statement in all sincerity and still
not agree necessarily with every
ruling or every line of reasoning
whicTThas

The

come

and

ities

Federal

and many

out of the Secur¬

Exchange

Commission.

Power

Commission

State Commissions have

taken steps to strengthen regula¬
tion and I think it should be made

clear

very

the

that

utility

themselves,

com¬

have done a
to put their

independently

Post-War Outlook
have

had

little flurry

utility equities in the past month
or

two,

I feel

but

the

business

be¬

that their

po-

For

relatively low rate

coun¬

only 9 rqills

was

cents

from

words,

business

and

the

business

mercial

In other

average,

returned

average

customers

kwh.

per

about four times

trial

the

domestic

cents

3.5

was

kwh.

per

return

domestic

companies

what the indus¬

paid and the

business

returned

com¬

about

„

•

re¬

stations

own¬

de¬

fense

domestic

it looks

before taxes should be back with¬
in

two after the

year or

not

offhand

statement

careful
companies
have

some

studies

which

One

made.

sive

the

most

ing

Southern Corporation.
far

They went

to have every

individual,
make up a budget of the
they thought they could
sell within a couple of years after
as

company

power

the

and

war

timate

went

further to

men

umented with schedules

have

example,
sumption per

the

In 1941,

enormous.

for

was

average

domestic

con¬

customer

under 1,000 kwh.

Preliminary
figures for 1944 indicate that the
figure rose to around 1,140 kwh.
This

build-up has

come

pe¬

it has been impossible
industry to go after new
business in any substantial way
because
appliances
have ' been
practically off the market.
Some
companies expect a 50% increase
in

their

domestic

after the

and

war

load

five

some

gains and losses in
they

or two their earnings would
back, overlooking any question

One
of
your
own
companies,
Massachusetts Utilities Associates-,
put in a study before the SEC last
year with somewhat similar con¬

clusions.

Another

•

consideration

enters into the picture is

companies
ation

concentrate generT

can

their

and

newer

in regular service much of

use

the time

plants which ordinarily
required oflly "for peak
stand-by service. Just recently

would

sell

which

sociation made last year estimated
that if

tinctly wartime character.

did

turn

back in

work

some

has

some

such

company

business

dis¬

Its

12-31-42

$155,092
729,512

676,458

449,148

663,583

virtually new
coming along including such

things as television, air condition¬
ing, home frozen food lockers,

from other systems at an average
cost of 7 mills. Obviously, power

double

that

plenty

uses

1936.

new

There

Rural electrification is

etc.

which

ploited

are

will

further

labor and materials

big

which

ex¬

the company leaves

are

profit when sold at 8V2 mills after
allowing for transmission and dis¬

extensions.

costs

mills

delivered

little, if

present less than half of the farms

tribution

country are electrified, ac¬
cording to a recent survey.
Bet¬
ter standards of lighting are com¬

other

ing along all the time. People who
fearful that widespread use of

profit to themselves and in some
cases it is hard to get back a new

fluorescent lighting will cut down
electric consumption overlook the

dollar for

are

fact

that

be made

greatly

many

installations will

such

increase

manner

lighting,

Bear- in

the intensity
there will be

mind

industry
has
problems.
The
which
for

comes

that

The

old.

the

mean

will

war

the

un¬

repeal

of
no

but it is estimated that in 1943 ap¬

•

proximately

reconversion
electric current
now

the

was

1,600,000,000

amount

kwh.

savinjgs

Teletype—NY

light

saving

winter.

The

through.

right

additional

(Continued

just

Corp. 5s '64 &

page

sp.

Wire

Chicago

the

current

840)

part. stk.

BROADWAY, NEW YORK 6, N. Y.
Direct

1-2078

electric customers because of day¬

Crescent Public Service 6s 1954

daylight
saving.
I
have not yet seen figures for 1944

can

end

doubtedly
year-round

the electric

purposes

and

My point is that a
lot of these companies are carry¬
ing the war load at very little

;;

off the bus bar

industrial

taxes

expenses,

items.

Gilbert J. Postley & Co.

York 5, N.-Y.

any,

of the

request

31 Nassau Street, New

re¬

about

was

8V2 rpills per kwh.
On the other
hand,- although the company cari
generate energy at around 3 mills
per kwh., its facilities are inade¬
quate and "it has to buy power

Southeast'n

12-31-43

use

high cost plants and purchased
power. Many companies have had

merchandise again. A study of the

th£ market in 1946* the volume of

100%. In

National Electric Wholesalers As¬

were

which

that the

efficient plants and make less

event, it is going to be big. A
new homes are going to be
built and these will have plenty
of uses for electricity.
All of the

appliances-

which

In general, as I
it looked as if within a

of where Federal taxes would be.

years

aggressively

of actual

revenue

year

any

will

expected.

have said,

lot of

companies

operating expenses
taxes.
They were
not

"horseback" figures but were doc- '

companies

say the increase will be

es¬

their

agree

whom

impres¬

something
a year ago at an SEC hear¬
by
the
Commonwealth
&

utility

that possibilities

introduced

was

over

but

very

talked

with

point wherd they have been
during the war period.
This is

before

are

war

the

plant will again be operat¬
ing. The residential load has been
up even in spite of the war and

this field

Generally
if earnings

5%—5%.

876.947

7-5161

speaking,

for

purposes.

American Gas & Power 3-5s & 3.6s 1953
.

PETER MORGAN & CO.
Telephone—BA

sold

Only

$303,488

will

went into

net loss of current sold.

$563,012

Circular

war

figures are a little mislead¬
ing because rate schedules are set
up
with various increments. • I
have explored this angle,- how¬
ever, and have good authority for
saying that a lot of the industrial

Assets.. 1,125,798

Total Current Liabilities

went to

the

Dealers

stands

had to shut down while the

three times. Now to be sure, aver¬

COMMON SHARES

Gov't Securities

Current

per

kwh. whereas the average return
from commercial business was 2.7

9-30-44

Total

filling

available for line

Present Market

Cash

corner

industrial customers in the

National Gas & Electric Corporation
:

closed

field

try at large

hostilities.

hot-dog

been

Collected for industrial power.
In
1944 the
average
revenue
from

age

houses in order.

cause

the

sales would be somewhere around

from industrial customers in other

But almost al¬

'rally.

usual business.

of those who feel that the over-all

carried down a cou-

jple of points.

A lot of

operating

are

purposes

war

operating

and I

this particular class of

tricity will be closed down.

common

investment

think

there will

by increased volume or

dullness seldom carries

which

strictly

stocks
increasingly desir¬

Utility

on.

utility
can see

load

small business which has

riod when

plants

time

analyze

every¬

will be going full blast again and

for the

field

the

open,

commercial

cessation

have

considerable loss in the industrial

happening

this

two to

2 cents

well

based

this.

obvious

the

roadside

load of these companies.

dentally using

that

away

proceeding gradually and I
think you
will see much- more

by dullness. In the latter case
ages

minute

post-war outlook for
Of course, we

right

better pro¬

definite

usually

take

The refunding of preferred
on a
lower dividend basis

ture.

be trans¬

may

On the contrary, more and more
high records are in prospect." Let

than

panies,

dication

much

general

lot

lated

and there is no indica¬
tion of any cessation of this trend.

rates but the fact that these bonds

old

highs is often the first in¬

of its record of growth and

cause

progress,

today, better and stronger than
they have ever been before. Util¬
ity bonds are selling at new high
prices.
Of course, this; is due
partly to prevailing low interest

to observe that failure to pass

Such

the
they

as among

investments,

change

alarming."
%

desirable

stocks

that the
heading for this

kind of behavior

cline.

long been regarded
most

years ago

possibility

market

the

was

bull trend.

the

many a

as
I want you to see it if I take' tentialities have been by no means
just a little time for some back¬ exhausted, Utility stocks are esground material.
peciallyl desirable for the post-war
I want to say right at the start period.
The industry has gained
that while utility securities have the
confidence
of investors be¬

are

market

usually

quickly and easily built

which
V

that

The

;

they have

will

than

should

can

Says—
•

body

Waiter Whyte
i.V-

picking

per

hand, the do¬

which

kwh. and in most instances jt

per

will

Teletype NY 1-609

has

companies

return at least IV2 cents

Street, New York 5/ N. Y.

WHitehall 4-4970

business

lost

the

5 mills to 8 mills

only from

70 Pine

•I

will

returning

kwh. On the other

Barbara

Sacramento

—

Fresno

which

business
Y.

Principal Offices

—

Oakland

—

Trade

New York 5, N.

COrtlandt 7-4150

San

(Associate)

Exchange
Board of

Street

Private

Curtis

1879

York Stock Exchange

New

ESTABLISHED

Members

;

Opportunities In Utility Securities
.;

(Continued fr om

used

the morning was
less than the savings around

much
the

This

early

peak hours of the afternoon.
load should come back and

higher-priced

much of it is in the

commercial

and

domestic

cate¬

The dim-outs and brown¬
outs will
be things of the past.
The companies will be relieved of

gories.

such as
guards against sabotage and other
extra

many

wartime

expenses

comments so far have re¬
especially to the electric
companies, but
without taking
time for details, it seems to me
that
there
are
plenty of good
My

ahead for the gas com¬
This is particularly
panies also.
true
in
respect
to
companies
which will be in the position to
change over from artificial gas to
natural gas.
The increase in busi¬
ness which the gas companies can
things

made
There is a big

get when this conversion is

impressive.
for additional

ahead

field

house

heating by gas and if the price of
oil

sales of

levels,
house-heating instal¬

above

stays

gas

should

lations

pre-war

The gas

easy.

people have not been asleep and
they have been working on new
For

load.

their

build

them

should- help

which

appliances

ex¬

ample, just as the war broke out,
manufacturers of gas equipment
getting in the position to
single self-contained pack¬

were

offer

unit for all-year-round air
conditioning, controlling the heat¬
age

ing,

humidification

cooling,

filtration of air.

several
into
of

matter,
homes
With

would

the

In the opinion of

which went
saturation

companies

the

double

average

equipment
income of

this

the net

gas

and

company.

are

setting aside between 15% and
of operating revenue for ex¬

taxes, and this is a
There are plenty of

profits

cess

around 10% of

them that pay out
their

for

revenues

There is

this

purpose.

general feeling that ex¬

profits taxes will be among
the first to be reduced or repealed
after the war.
Of course, all of
cess

would not become
available for the stockholders as

this

money

earnings now subject

to ex¬
profits taxes would become
subject to normal taxes and sur¬
taxes.
However, there should be
plenty of salvage for the security
the

cess

holders in

lot of these situations.

All of these things

make the post¬

position of utilities look bright
and will make their equiiy shares

war

sought for.
consid¬
eration having a bearing on the
future
course
of
public utility
Another very important

common

stocks is the search now

going on for investments yielding
a good return.
With bond financ¬
ing being done on the basis of less
than 3 % and with preferred stocks
coming out

now

to return 4% and

investor who has
been accustomed to get 5%, 6%
or
more
on
his money is hardpressed. This is particularly true
with a private investor. The banks
less,

even

have

the

reduced

the

background

dividends
but

and

the private
cut

his

and

new

lot

stocks to the

There is

come.

one

are

still

section

the Act which is particularly re¬
sponsible for this flow of new
securities,
and
that
is Section
11 (b).
Under the terms of Sec¬
tion 11 (b) (1), holding companies
restricted

are

so-called

inte¬

grated systems, and to qualify as
an
integrated system it is neces¬
sary for a group of properties to
be pretty compact.

Therefore

companies

making

dispose of

are

lot

-moves

outlying properties
which cannot qualify as part of
an
integrated
system.
Section
11
(b) (2) requires an equitable
distribution
a

capital

voting power and
which is not

structure

complicated.

This has led to

a re¬

vamping of the structures of some
these companies with new se¬

these

stocks

become

first

the

When
holding companies have had to
dispose of stocks of subsidiaries,
they

have

process.

done

sometimes

through the medium of an under¬
writing group and at other times
by direct distribution of shares
to
their
own
security
holders.
Other

moves

are

prospect.

Of the

similar

nature

which

the

while

utilities

are

enough quantity to warrant listing
on the New York Stock Exchange.
Just to cite
this

going to continue to command the

which they now do, I am

the market through distribution to

security holders have been, among

example of how

one

assimilation

Light which

the

l/20th

ten-share

and

issued

began

trading

vicinity' of

took

the

which

Marquette Railway Company

quarterly

To be Due March 1, 1980

rate

Then they stepped
payment up to 25
announcement

we are reason¬

that

assuming

development,

the

sold

stock has
to over 19.
This is def¬
an
investment
quality
its

and

tialities

the

poten¬

long-term

have

been

means

fully.
The company
substantial excess profits

exploited
The issue and sale of these Bonds are

subject to authorization

pays

tax

by the Interstate Commerce Commission.

it operates

and

territory

where post-war prospects are very

indeed.

good

stock which

Price 100.92% and Accrued Interest

the

is
be

can

type

appropriately

held by institutions who buy only

high-grade equities.
Middle

Copies of the Offering Circular are obtainablefrom only such of the undersigned as may
legally offer these securities in compliance with the securities laws of the respective States.

For example,
in the
bought a block of

insurance

one

West

company

5,000 shares of the stock not long
after

the

Blyth & Co., Inc.

became

Ob¬

available.

Harriman Ripley & Co.

Corporation

Kidder, Peabody & Co.

Lehman Brothers

Mellon Securities Corporation

Drexel & Co.

Stone & Webster and Blodget
-

Eastman, Dillon & Co.

Incorporated

Hornblower & Weeks

■

■■•

W. E. Ilutton & Co.

Southwestern Public Serv¬
There was an offering of some

ice.

The

Iligginson Corporation

Merrill Lynch, Pierce, Fenner & Beane

& Co.

Paine, Webber, Jackson & Curtis
:

Shields & Company
February 20, 1945

are

E. H. Rollins & Sons
Incorporated

White, Weld & Co.

now

very

Issues

comment

same

could

Idaho, Central Illinois,

likely the pattern that will

be followed
come

of these

many

the

new

market.

to be alert as each new

urge you

stock

F. S. Moseley

be¬

Empire District and others. I wish
to emphasize that I think this is
very

Southwestern

the

common

couple of years ago and the pres¬

price is about four times the
offering price. This is an unusual
ent

but it shows how

perhaps,

case,

these stocks find

true level. The

Power &
from a re¬
capitalization. Most of these shares
went to the old preferred stock¬
Light

Sound

Puget

present

came

common

Lam not prepared to say

holders.

whether this stock is

bargain at

present prices but I can say that
there is a very wide interest in
the shares. In giving talks of this
there is
asked

about

frequently

Puget Sound.

'■

I might

ahead,

Looking

think

stock I have been

one

cities,

various

sort

men¬

pending recapitali¬
zation situations.
Within a very
tion first

two

few weeks I expect

that the com¬

United

stock

mon

Light

and

Railways Company will be on the
market for the first time.
This is
being distributed to the preferred
and
common
stockholders
of

Co. which
The present
preferred

United Light and Power
is

being liquidated.

United Light and Power
will

United

five

get

Light and Railways common and
each share of United Light and
Power
a

will get l '20th

common

share of United Light and Rail¬

This system has been doing
aggressive job of trying to in¬

It has sold a number of
properties in outlying areas and is
concentrating on building up a
system
in
the Middle Western
States ol' Illinois, Iowa, Missouri
tegrate.

Kansas.

and

comes

will

find

the

early

along and I think you

very

often they sell in

days for

less than the

The

what promises to

backbone

be the remain¬

ing system are three strong com¬

Kansas
City Power &
Power & Light and

panies,

Light, Iowa

Illinois-Iowa Electric & Gas.

would

these

price-earnings
Railways
go

ratios

All

high

command

directly

The United Light and

available.

dividend

probably

will

common

promptly

fairly

basis

the system is in good

cash position and

the management
recognizes that the old preferred

stockholders

is well

worthy of

have

possibilities.
which

company

will

change in its capital struc¬

ture

This stock
considera¬

your

tion for its long-term

Another

divi¬

without

went

dends for many years.

due

course

Buffalo,

& Eastern Power.

Niagara

now

company,

This
of

subsidiary

Niagara Hudson, controls compa¬
the western part of New

nies in

the

with

York

most

important

Buffalo

and
Falls.
The company at
present
has $5 first preferred,
$1.60 preferred, Class "A" and
operations

around

Niagara

common

for ,the

order,

plans

the

Niagara Hudson.

company

its

by-

one

were

fulfillment

one

and

class

one

Two

stock.

submitted

itself

or¬

change the three junior
stock into

classes

The SEC has

stocks.

dered it to

parent

There is

wide

divergence in the two plans in so
far as they relate to the percent¬
of

age

stocks

Lee

stock

purchased it in

Recapitalization

made about

Smith, Barney & Co.

the

sized

happy.

Incorporated

Lazard Freres & Co.

when

trading and
early days

the

The First Boston

the people who

situation

gan

strong operating com¬

pany,

this

viously

exchanged for common

were

shares of

$1 annual basis. With

this

initely

payable March 1 and September 1 in New York City

safe

stock is

3%% Bonds, Series D

Interest

the

Con¬

the

made, I think

was

stock
,

was

quarterly and made two

cents and while

ably

To be Dated March 1, 1945

stocks

dividends

20 cents

the

first avail¬

was

with such old-time,

such payments.

;

analyze

Light & Power and Con¬

paying

$50,000,000

First Mortgage

price-earnings ratio was substan¬
tially lower. The company began

yyf,iP-y-N

Pere

in the

Anyone

solidated Gas of Baltimore but the

New Issue

15.

that

see

league

necticut

around

was

trouble

this stock when it
could

lots

long time

many

people
200 shares of U. G. I.

were

stock

that

meant

well-recognized

Offering Circular. The offer of these Bonds is made only by means of the Offering Circular,
should be read prior to any purchase of these Bonds.

holder

received

into

converted

shares and in due course

common

Delaware

old

the

example,

ways.

This

holding 100

who

Every

common

Light for each share of

Delaware

general

Gas

United

Co.

I.I
a

same

on,

distributed to

was

shareholders

able

This is not

goes

process

I would mention Delaware Power

14 and for

stocks

ing, the stocks become well enough
distributed and are out in large

District

these

as in the case of
and Houston Light¬

Power

The

Coming

and

lots

combined

Sometimes,

Illinois Electric & Gas and Empire

Electric.

stocks

going on.
begin
to get a following, dealers get to
work on them and they go into
the hands of people who are in¬
terested in holding them for longterm investment; then the float¬
ing supply gets less and there is
only one answer—the price goes

investor does not

odd

process

while

five-share

securities

case

have

this

After

ton

had

their

into larger blocks for investment;
there is pressure on the market

the

budget, especially
are high.
If

the

market

premiums,

Lighting & Power as among
earlier ones, and in 1944 we
Derby Gas & Electric, Central

people

being distributed as
dividends, they come

are

liquidating

raised

Improvement

stocks which have come

by the underwriting route, I
Pub¬

out

educated

time.

Idaho

takes

merits, especially when stocks are
in the hands of the public for the

up.

part

out

come

certain amount of time for

curities making their appearances
a

For

preferred stockholders of Com¬
munity Power & Light had their
preferred

In the
case of each company I have men¬
tioned, the experience has been a
pleasant and profitable one.
To
be sure, this has been partly due
to a generally rising market, but
this is not the whole story. After

securities from recapitali¬

new

zations.

with the present markets.

Power &

wartime taxes

prices

lot of

brought

market

to recall the price levels

which prevailed when these stocks
first came out and compare them

lic Service of Colorado and Hous¬

and

rates

the insurance companies have cut

senior

post-war outlook for
utilties is the anticipation of some

for

much

would mention Idaho Power,

interest

important

items in the

and in some cases even more.

ask you

20%

when

One of the very most

others, the stocks of Philadelphia
Electric, Consolidated Natural Gas
and Delaware Power & Light.
I

especially excess
material, and now I would like
profits taxes.
Bear in mind that to talk about individual situations.
a
goodly number of the utility
Effect bf Public Utility Holding
companies
have to pay excess
Act
profits taxes, although the -extent
to which a company is hit by these
The
operations of the Public
taxes
depends on a number of Utility Holding Company Act have
variable factors. Some companies

Tax Reliefs

wondering how long you will be
able
to
buy the good common
stocks to yield from 5% to 6%

relief from taxes,

lot of money.

precautions.

ferred

is very

839)

page

Thursday, February 22, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

840

new common to be given
present $1.60 preferred and
junior shares. How¬

the

the other

without going into all of the

ever,

safely

assume

ferred

now

vicinity
taken
flect
ence

care

the

think

ramifications,

can

that the $1.60

pre¬

selling in the general

will

of in

fact

that

way

has

to re¬

prefer¬

of 9525 per share olus accrued

dividends of about $4.
both

have

some

recanitalization

Incidentally,
plans

pro¬

vide that the $1.60 preferred shall

price which they command after

they have been out a little while.

dend at the rate of $1.60 per share

will give

some

you

preview

the stocks coming along,

but first will mention the

ner

entitled

annum

for

adjusting divi¬

such, period

January 1st of this

year as

creation Ho make the plan effective.

after

it takes

[Volume 161 v Number

THE COMMERCIAL & FINANCIAL CHRONICLE

4362

841
"i*

"Dollars at

Discount"

It is still possible to buy "dol¬
at a discount" through the

lars

purchase

holding
selling for

securities

company

than

less

their

break-up values. To be sure,
the spread between market prices
and estimated break-up values is

stands, the
common
stock equity represents
little, if any, real investment on
the part of the parent company.

nies
time

these holding compa¬

making progress all the

are

toward

the

completion

their programs.

quickly

few of the holding

where

situations

pany

tive

developments

the next few

com¬

construc¬

likely

are

additional
to

plan of As¬

SEC

the

Federal District Court.

been

the

and
It

was

ap¬

pealed to the Circuit Court of Ap¬
peals and the decision of that
is

court

time

looked

for

almost

I realize that the

now.

any

name

"Associated Gas & Electric" is

pulsive

investors

many

re¬

but

these people are overlooking what
has happened in the five years in

whether

seen

investment

made

this

equity before

Another

which

situation

be cleaned VP

reorganization plan the
will receive stock

This has been in

the courts for about ten years.

Owners

the

receive

Public

values

behind

this

greater

than the

stock

are

present market

price of the bonds and the new
company is set up definitely as a
liquidating vehicle.
That means
that

is expected

in due

course

that the stocks of the

underlying
companies will be distributed al¬

though

for

tax

holding companies
tinued

This

has

system

may

existence

regional

reasons

for

con¬

while.

excellent

some

operating
properties
including
Metropolitan
Edison,
Rochester
Gas & Electric, New York State
Electric & Gas, New Jersey Power
&

Light, and others.

Associated

Gas

both

able

prefer

bonds

listed

securities,

avail¬

are

unlisted

and

of Indiana is not

pany

vestors but if you
a

look at it,

you

i'of

the

one

equities

from

point.

The

with

work

there

you

chance for you to take hold in

this

Service

to in¬

new

have not taken
should do so as
most

promising

stand¬
has been
making remarkable strides in the

post-war

company

last few years but inroads of war¬

achievements

some

if you

while

provided
amounted
were

the

18%

taxes

period

same

share.

These

operating rev¬
salvage for stockhold¬
any
relief from taxes

over

The

enues.

with

ers

profits

excess

for

November

ended

stock

along it will be much
sought after. Central Illinois Light

Middle

will also be

ity

only casually. What
should do here is to take a

after

the

taking

trend

income

net

of all

care

expenses

and fixed

charges but before pro¬
viding for Federal taxes.
This
rose

1938

from

about

$9,650,000

most recent 12

sistent
before.

year

increases

the

showed
the

over

con¬
year

This has been due to good

growth in the
to

months period re¬

Each

ported.

$1,865,000

around

territory and

remarkable

system with its service
of

some

of the best

the

also

improvement

operating

has

will
of

the

This

popular

current

pass
a

difference of 1%

yield when the future

possibilities

are

This
sharp in

great.

earned $1.90

company

situation

"A"

the

very

Middle

The present pre¬

ferred stock is paying a dividend
while consummation of the plan is
awaited.

Commonwealth & Southern pre¬
ferred is a very good stock for in¬
who

vestors

want

current

re¬

turn, and while the discount from
immediate break-up values is riot
as
large as in some other situa¬
tions, the potentialities on a post¬
war, basis are very great because
Commonwealth
been

the

Southern

has

will

command

Other Profit Possibilties

There

are

situations
&

the

American

Light preterreds, Elec¬
&
Light preferreds,

Power

tric

North

American

Public Service

neers

Engi¬

common.

common

and

others which lack of time
prevents mentioning.
The Engi¬
Public Service

particularly attractive for
counts not insistent

looks

common

any ac¬

current in¬

to be

paid

the

common

building

for

the

say,

an¬

alysis will reveal situations out of
line

utility field just as in
and purchases should be
made thoughtfully and not indis¬
criminately. Furthermore, oppor¬
tunities for profitable exchanges
often present themselves. For ex¬
ample, at the moment there is a
spread

tween

the

Edison

time element in this
of determined

case

because

opposition to

some

features of the plan in its present
form.
When, as and if the plan

consummated,

distribution of
common, Cen¬
tral Illinois
Light common and
other underlying stocks will be
Power

I have made

made.

exhaustive

study of Consumers Power and

extremely enthusiastic about this
situation.

When

that

common

Co.

does.

bases*

might

stock

for

number

comparison,

the

there

two

stocks is

cheaper-in this

that

of the record of Peoples
Light & Coke in the last few

years

against Commonwealth Edi¬

son.

son

and

Commonwealth

think

should

be heard

the

inroads
The

excess

income

net

$3,150,000 in 1939 to
000

the

ended

and North Amer¬

the

riod

going

Co. common; yet the latest
months' consolidated
earnings

earnings

Federal

years.

its

the

last

This

comparison of
Federal taxes is

earnings before
significant as it does

with

away

companies'.
months

are

things going
cover

Sept.

the

This announcement is

that it is hard to

than

few situations

brief talk of this

kind, but I
by say¬
ing that the alert investor is going
to find a lot of
interesting oppor¬
would

like to

tunities
would

in
do

summarize

utility
well

securities

watch

has

offering is made only by the Prospectus.

unusual feature in that the

debentures

are

paid off by

distribution of operating company
common

stocks and

$35,000,000

If the

cash.

plan is upheld and market levels
as
favorable, the items

remain

to be received on this distribution

should

worth

than

the

present price of the Standard Gas
debentures.
Included in the pro¬

Oklahoma Gas and Electric

distribution are shares of

posed
consin

Gas

Oklahoma

Public

Service,

Wis¬

First

California

Mountain

Power,

Oregon

Electric,

Company

Mortgage Bonds, Series due February 1,1975,

States

Power and Pacific Gas & Electric.
Three of these stocks have
been

hands

the

I have

before.

been

never

the

February 1, 1945

doing

February 1,1975

some
r

' '

lV'

••

' {'1'

*'•

) *

y '

' P.,

] '

„

'•

Price 101% and accrued interest

The Prospectus may be obtained in any state in which this announcement is circulated
from only

outstanding job of electric load

such

The Standard Gas pre-

building.

Due

public

preliminary work on these and am
particularly impressed with the
growth prospects in the Oklahoma
territory.
The Wisconsin stock
will be very popular especially
in the general section of the coun¬
try where the company operates.
California Oregon Power has done
an

Dated

of the undersigned and other dealers

as may

lawfully offer these securities in such

state.

ferreds have had quite a rise but
are

still selling at a discount from

The most im¬

break-up values.

portant asset which will be left
applicable to this stock is the
common stock of Philadelphia Co.
utility
Pittsburgh.

controlling
around

properties

It begins to
Power

look as if National
Light might finally

and this would
probably mean
that stocks of
Carolina Power & Light, Birming-|
liquidate this

HALSEY, STUART &, CO. Inc.
BEAR, STEARNS & CO.

HALLGARTEN & CO.

R. W. PRESSPRICH & CO.

OTIS & CO.

WILLIAM BLAIR & COMPANY

PHELPS, FENN & CO.
PUTNAM & CO.

year

Pennsylvania Power ;
& Light would come on the mar¬
ket. Of these stocks, I think Caro¬

DEMPSEY & COMPANY

GRANBERY, MARACHE & LORD

IRA HAUPT & CO.

ham Electric,

lina

Power

Light will be

most interesting.

Power &

THE MILWAUKEE COMPANY

the

The Pennsylvania

Light has just had

a very

favorable rate base established by
the Pennsylvania

Commission but

February 21, 1945

MULLANEY, ROSS & COMPANY

and

closely

developments in this field as they
1944, unfold. ■ r
vs;'v
\

30,

offer to selfor a solicitation of an offer to buy these securities*

not an

The

ready approved by the SEC. This

normal

interesting

many

From 1939 to the

ended

provide

non-recurring deductions.
utility field is so broad and

there

the distortion due to the inequali¬
ties of the tax burdens on differ¬
ent

The

stock

common

revenues

profits taxes

excess

operations, although it is not ac¬
tually paying this amount because

is that Con¬

taxes

operating

for

solidated Edison has been able to
show only a very modest increase

few

was

from only $31,300,000 tov
about
$45,500,000.
Peoples
Gas""
Light is appropriating over 15%

almost identical and the div¬
idend return is similar
except that

were

before

last

corresponding figure for

the Commonwealth Edison Co.

this

same pe¬

ican

Standard Gas & Electric plan al¬

profits
of

$11,100,-

over

months

September, while in the

the next few weeks from the Fed¬
eral District' Court concerning

Edi¬

desirable

company before provision for Fed¬
eral taxes increased from about

five points be¬
prices of Consolidated

ing point, however,

selling now for less than
break-up value.
In my mind,
is little question which of

its

situation.
Some word

promising
especially

future

the

it is

taxes.

The net proceeds come out some¬
where near thg same. An interest¬

tion

there will be

ex¬

North American stock looks
it

underlying securities, al¬
though I am pessimistic about the

later

pays

been

about

common

Edison

stock, but Peoples Gas Light has
coming along faster than
some people
realize, agfain because

in the

others

stock of Pacific Gas & Electric Co.

ican
other

Gas

patient

study and

from

Another interesting comparison

for the

holder.

Needless to

for
stock

rose

market.

present but, of course, the equity
is

earnings
common

taxes

profits taxes and North Amer¬

the

The management has indi¬
no dividends are
likely

come.

income

Consolidated

cated that

distribu¬

hit by excess profits taxes.

consolidated
American

cess

many

North American pays its dividends
on
lots of 100 shares or over in

systems hardest

$38,700,000. In contrast with

this,

around $22,000,000 in 1939 to over
$37,000,000 in the latest 12 months.

profit possibilities in
lot of the other holding company

Power

were

about

North

v./

before Federal taxes

from about $34,350,000 to only

high

Sooner

one

common

desirable stock
investment qual¬

very
an

earnings for Consolidated Edisort

before

company.

will be

medium

Western market.

Consumers

class

and

holding

common

companies which are
showing less growth but it would
some

foolish

Minnesota,
company,
for the

the

new

stock

common

preferred

present

which

States of

operating

stock

pending

issuing

mean

Northern

than

of this kind for

possessing

growth prospects.

plan

efficiency and savings
in fixed charges.
This company
is retaining in the business a little
larger proportion of its earnings

in the

area

country

Northern States Power of Dela¬
ware

which

neers

part

price-earnings ratio.

West

Corp. will prob¬
ably make another capital distri¬
bution this year. Somewhere along
the line this company will dis¬

comes

and will have

interesting.

look at

the company

whichever type

Incidentally,

will

The stock of Public Service Com¬

The intrinsic

pre¬

Company of Indiana and of a new
company, Midland Realization Co.

look

company.

ferred stock of this company

you

new

30th

months

A
tribute shares of Central and South
compromise reorganization plan
has already been approved by the West Utilities for which a recapi¬
SEC and the Federal Court and is talization plan is now pending.
This latter is a very promising
now being balloted on by security

present bonds
a

may

this year is: Mid¬

land United Co.

Federal Court.
the

;

the

terms

the

should be

the company is finally cut loose.

time taxes have obscured

Under the

have

may

which this system has been oper¬
ated by trustees appointed by the

•

holders.

Gas & Electric has

approved

months.

The reorganization,

sociated

I will mention

now

It remains to be

less than it used to be but, on the
other hand,

company

the

E. M. NEWTON & COMPANY

rf»w«

.*v: /tttaawn ***y

Clarence Unterbeig Stresses
Protection oi Public Interest

Insurance & Bank Stocks
Bought
ANALYZED

Sold

—

Quoted

—

REVIEWED

COMPARED

Special Bulletin and Booklet Service to Dealers & Brokers

New York

Chicago

TELETYPE

279

Seattle

280

—

the

express

governors

and to the

Association

our

mem¬

whole my deep ap¬
preciation of the honor that has
been paid to me.
I can only say
that my purpose is twofold—to
serve
you as effectively as may
be in my power and capacity and
to live up to the wealth of fine
bership as

Bank and Insurance Stocks
This Week

"Before

I want to make, I want

remarks
to

San Francisco

said:

Continuing,

WIRES

PRIVATE

Ex¬

proceeding with the few formal

St., Los Angeles

7th

West

Securities

the

NASD,

change
Commission
and
State
Commissioners of this area."

CALIFORNIA

210

the

CO.
&

BUTLER-HUFF

business—the stock exchanges,

our

Orders solicited.

Inquiries invited.

Bank Stocks

that

tradition

By E. A. VAN DEUSEN

has

built

been

by my predecessors in the Presi¬
"best-seller"

the

pre-1929

Stuart Chase's "Your

was

era

Money's Worth."
It struck a responsive chord with the public, for
everybody likes to get his money's worth, including speculators and
investors.
What does the investor iii bank stocks today get for his

If he bases his selections on facts, he can do very well, but
if on fancies, he may not do so well, for the relative attractiveness
and
investment
value
of
bank-^
dividual stocks is very wide, as
stocks is far from uniform even
money?

accompanying ta bii l a t i o n
brings out;
the

New York City's leaders,
the variation among in¬

among

fact

U. S.

Earning
-

"/•

'•

2-14-45

V '•

■:;

Market

/Bank

Manhattan

$29 %

Bank

New

'•' V'

v:) '■

Bankers

•

i—

Trust

Central

456

York-—

Hanover

Chemical

Yield

Market

$2.40

$1.00

8.1%

3.4%

$15.84

$9.33

14.00

6.7

3.1

13.04

9.65

7.3

■/'l

50 vi

55»

4.00
1.40

Corn

Exchange

First

National

58 Va

Trust

18%

Trust

Manufacturers

National

City

•

York Trust-——

New

9.49

13.09

8.96

6.9

3.3

11.29

7.61

1.60

7.8

2.9

•11.35

9.13

0.80

8.0

3.2

14.01

6.08

2.40

6.8

80.00

5.5
5.7

0.70

6.2

1.17': ?

r*-

V: 6.06
2.65

1.30

6.1

7.03

3.50

6.4

2.00

4.30
7.35

3.7

11.08

7.92

ways

12.51
2.96

7.0%

3.4%

$12.02

$8.25

Highest earning assets per dol¬
are provided by
Public National, with $19.38; this
lar of investment

stock, moreover, provides next td

highest earning yield of 8.7%;
assets per dollar
$4.97 by United States Trust,
next to lowest are $5.50 by

dividend yield is 3.4%, While
the average earning yield is more
than
double, being 7.0%.
This

Lowest earning

earning yield is based on net
operating earnings and excludes
security profits and recoveries.
If these latter are included, the

First

National,

stocks

are

would be

average earning yield
approximately 9.5%.

low¬

yield is
Banker's
Trust
with 2.8%,
including the
20% stock dividend of December,
dividend

dividend yield
United States Trust.
Manufacturer's Trust provides the
1944.

The highest

4.5%

which

also in the low brackets

earning yield.

U. S. Government

With regard to
securities, Pub¬

lic ranks top with $12.51 per

dol¬

atsf

t Jo

Members

New

York

Stock

Co.

Exchange

NEW YORK 5

Telephone DIgby 4-2525

interests

Their

average

earning

rough correlation between earn¬
ing assets per dollau and earning
yield.
is not

cipally,

exist

between

character

the

their

ample,

precise is due, prin¬
the wide differences
the

and

banks

proportions

earning assets.
First National's

For ex¬
Govern-

look to

markets

our

The

lists.

to their

additions

for

Firemen's Insurance Co.

Bond Portfolios

Liability for 1945
On

New

York

(L,

American Insurance Co.

BROADWAY, NEW YORK 5, N. Y.
Telephpnc: BArclay 7-3500
Bell Teletype—NY 1-1248-49
A. Gibbs, Manager Trading Department)

for

room

£115,681,681

Associated Banks:

Williams Deacon's

be¬

only in the heat of selfish con¬
troversy. There is opportunity for
all in the business.
Competition
is the health of trade,

BANK OF
NEW SOUTH WALES

long

(ESTABLISHED 1817)

keep always before us our

and

future

the

objective

common

And they will not be
hear

that

advancing

Association

and, I imagine, the exchanges and
ments

sets,

represent 69% of total as¬

Bank

Whereas

of Manhat¬
only
On the other

that

can

the

maturi¬

average

and ..consequently the yields
of
Government
holdings.
First
National's
average
maturity to
nearest call date is 5 years and
4 months compared with Manhat¬
tan's 4 years and 6 months. An¬
other interesting example is Chase
-National, whose average matur¬
ity for Governments is only 2
years
and 2 months, and since
these represent 56.2% of total as¬
sets (vs. Manhattan's 47%), and
and

loans

20.2%
should

discounts

represent

(vs. Manhattan's 29.5%), it
follow that Chase's earn¬

yield would be lower than
Manhattan's; and so it is, being
5.8% compared with 8.1%. How¬
ever,
Chase is the largest bank
in the world and enjoys the pres¬
ing

this.

for

Nevertheless,
one

the

bf the mar¬

vestment
or

J. S. Rippel & Co.
Established

MArket 3-3430
N.

other stocks,

bank

stocks,

lead inevi¬

tably to the conclusion that care¬
ful selection coupled with a fair

1891

18 Clinton St., Newark 2, N.

any

values

Phone—REctor 2-4383

degree of diversification
sential if

ably
sults.

one

is to achieve

satisfactory

are

es¬

reason¬

investment

re¬

•

With

in New

Pacific Islands, and
mast complete and

the

London,
efficient

and

LONDON OFFICES:

Threadneedle Street, E. C.

Berkeley Square, W.

Agency arrangements with Banks
throughout

the

be com¬

be; completely po¬
publication ever
The principle that our

piled, rshould

national bank

their

and

widened.

of EGYPT

over-the-counter market revolves

both

wholesale and re¬

vital

market

principle can be more widely dis¬
seminated through the circulation
retail quotations.

of actual

Commercial

goal and that

of that

FULLY PAID

"Our Association and those en¬

pelling responsibility to the pub¬
lic. The New York Security Deal¬
have

Cairo

£3,000,000

AGENCY

King William Street, E. C.
all

the

Branches

principal

Towns in

EGYPT and the SUDAN

forcefully on rec¬
constructive

gone

with

CAPITAL

LONDON
and 7

Cairo

FUND

RESERVE

gaged in the securities business
everywhere have another com¬

ers

Office

Head

thei; ad¬

pledge on the score of public in¬
vestments
in
defense
and war
bonds.
It has said that it believes

found

the

offers

business advanced.
quotations should be the

ord

Zealand,

is the oldest

Australasia.

States of Australia,

all

service to investors, traders
travellers interested in these countries,

47% of total assets.

ties,

be extended and our

accurate

bank

largest

branches

everyday
These

of New South Wales

The Bank

generally recognized, are an
through which
our
can

Manager

George Street, SYDNEY

banking

tan's Governments represent

Another point of difference

General
Office:

Head

—£208,627,093

DAVIDSON, K.B.E.,

SIR ALFRED

instrument
markets

surprised to

our

£23,710,000

30th

Aggregate Assets
Sept., 1944
;

the business'
service in the field.
Quotations,
it is

Paid-Up Capital ——£8,780,000 3
Reserve Fund
6,150,000 /
Reserve Liability of Prop.- 8,780,000

and

the members of our Asso¬
ciation there is an intense inter¬
among

ests in

Australia and New Zealand

settled

can

Bank, Ltd.

Glyn Mills.& Co.

this

not

disputes

which

vancement

April, 1942,
appreciating 121%
compared with an average of ap¬
proximately 90%.

Exchange

120

date be
tween

will, I am certain, out of my own
expedience with them, pursue an
aggressive course of enforcement
of the statutes entrusted to them.

"All roads lead to Rome,"" and
all studies as to the relative in¬

Request

Stock

should

There

tail

;

Laird, Bissell & Meeds
Members

tion.

W. I

ASSETS

TOTAL

jective in mind, some of our dif¬
will be simpler of solu¬

around

ket favorites and has given a good

Possible Excess Profits

Circulars

how

most

best invest¬
and that their
holders should not be induced to

NATIONAL BANK

these bonds to be the
ments in the world

of INDIA, LIMITED
Bankers

promotional schemes
type. I am sure that

sell them in
of whatever

speak for every member of our
Association as well as every hon¬
orable broker and dealer in the
country when I say that

Office:

26, Bishopsgate,
London, E. C.

than

"More

and

men

women

country
of

our

dreds

that vow

Reserve

tonight in the uniforms
military services.
Hun¬
thousands of them are

battle
Hundreds, per¬
haps thousands, of them will be

with the enemy.

another day has

casualties before

It is the least we, to whom

closed.

they look to guide and protect

the

front, shall not indulge in

home

selfish

much

they

when

acts

give

and

anonymity. Our duty is clear.

I'm

sure

will

not shirk it."

conducts

Trusteeships

.-£2,000,000
-£2,200,000

every

and Executorships

also undertaken

N. Y, Finance Institute

Course in Science

Selling Securities

unselfishness

complete

--£4,000,000

Capital-—
Fund-

description
banking and exchange business

Bank

The

serving their

are

moment engaged in

at this

Subscribed Capital

Paid-Up

million of our

ten

in India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar

Branches

observed.

will be universally

the Government in:

Kenya Colony and Uganda
Head

mand

result

of the popular de¬

by the securities sales fra¬

ternity, the New York Institute of
Finance,
successor
to the New
York Stock Exchange Institute, is
again conducting a course in "The

account of itself since the lows of

Break Down Gov't

Tax

64 New Bond Street,

ferences

Securities and Exchange Commis¬

pay

Fidelity Union Trust Co.

measured

sion and the members of its staff

stock of Chase

Bank Stocks

our

well
we discharge that obligation I, for
one, think that all else that in¬
tervenes is but a passing matter.
More than that, I believe that if
in our relations we keep that ob¬
will

liced

other

tige that naturally goes with this
distinction, and the investor must

New York City

we always re¬
ultimate success

public interest.

Charing Cross, S. W. I

Burlington Gardens, W, I

delegated to us—protection of the
member that

Smithfield, E. C. /

8 IVest

field

E. C. 2

3 Bishopsgate,

duty each of us in our
has assumed or had

one

own

and the exchanges, on
hand, will of course

changes,
the

Trust, Commercial National, Con¬
tinental National Bank & Trust,
Manufacturers Trust and Public
National.

-quiescent when any one of us
in
disagreement with them.
But let no one of us lose sight of
is

the

Scotland

throughout

LONDON OFFICES

most

tan's.

that

and other leading exchanges

WALL ST.

our

hand, loans and discounts repre¬
sent only 10% of First National's
total assets but 29.5% of Manhat¬

The reason that the correlation

clacil

guard

following six stocks provide
above-average
earning
yields:
Bank
of
Manhattan,
Bankers

The

ing yield of 6.2%'and their aver¬
age earning assets per dollar of
market are $10.83. Thus there is a

Corp.

All Issues

and U. S. Trust ranks lowest
with $2.96 per dollar.

yield is 8.3% and their average
earning
assets
per
dollar are
$14.20. The 11 remaining banks,
whose earning yields are below
average, .have an average earn¬

| North American
Cement

both

lar

The stock which gives the
est

and

NASD, too, do not intend to

against what we may consider ex¬
ambitions
of
the
ex¬

continue to

5.5%.

the

cessive

9.8%

yield with

We in

will be differences.

continue

and First National the lowest with

are

there probably al¬

the over-the-counter business will

4.97

age

As between

many

Commission.

the

Commis-

6.66

19.38

commercial banks, the
dollar .invested
today
commands earning assets of $12.U2,
of Which $8.25 are U. S. Govern¬
ment securities.
Also,'"the aver¬

staff

the

SEC and

of the

missioners

Securities

have

Dealers..

9.69

4.5

average

Association

tional

10.39

3.2

the

OFFICE—Edinburgh

HEAD

Branches

prbmote both the interest of the
investing public and of its mem¬
*In more direct ways oppor¬
bers.'
I pledge you my earnest tunities if not demands beckon us.
desire to accomplish that purpose Of considerable
personal interest
and assure you no energy will be to me over a
period of;■years arid
spared in the interests of the wel¬ in a most active sense for the past
fare of our organization.
year,
the" subject of newspaper
"Our guests, as I have said, are quotations
on
over-the-counter
from the exchanges and the na¬ securities has; 'been primary.
/1
tional body of dealers, the Na¬ have been gratified to find that

9.98

highest earning

Incorporated by Royal Charter 1727

assured.

13.96

8.7

leading

uphold fair and equitable/ prin¬
ciples of trade, to maintain the
highest
standards
of
business
ethics and integrity among the
Association
members,: and thus

14.14

6.1

based on
of Feb. 14 and the
stocks of 17 of New York City's

3.2

1.50

noted that,

The ob¬

3.0

70.00

market prices

dency of the Association.

ject of the Association is simply
stated as
,••'<. to promote and

3.3

4.06

;/■'/

It will be

11.27

5.50
10.24

?4.31

17——

Average

12.87

4.3

3.4

4.1

v./;.

9.8

61%

43'A
109%

1,540

Trust——

: V 7.03

13.10

3.2

12.00

3.96

46%

Public

10.47

3.4

20.35

357

2.8 ■■■/

6.3

5.8

103.71

if.

1,875 /r

Guaranty Trust
Irving

\ 2.01'

25%

—,

1.80

4.36

■

•

Continental

Yield y

1.40

7.42
2.54
3.82

55%

—

3.65

/ ; V
43%

—

30.45

117

_—

Chase

Commercial

Oper.".

per $

Earning Dividend per $ of

Annual

Earnings Dividend

Price

Govt's.

Assets

1944 Net

Royal Bank of Scotland

(Continued from page 828)

(P. C. T.)

Trading daily 7 a. m. to 5 p. m.

Thursday, February 22, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

&42

Science of Selling

Securities Suc¬
practical

Schram to Address

cessfully."

N. L Chamber Mar.-1

exposition of all phases of securi¬
ties
merchandising,
will
begin

This

course, a

Feb. 27th, with enrollment
*

Emil

New
be

Schram, President of the
Stock

York

the

guest

Exchange,^ will

speaker

the

monthly meeting of the Chamber

State of New

of Commerce of the
York at 65 Liberty
rin

TVTarnVi

already

reflecting the increased public in¬
terest in investments.
Frank M.

Cryan,
&

general partner in Brady

Co., will continue as instructor.
The

first

lecture

the

series

will be given at 5:30 p. m. on

Feb¬
Institute, 20

street at noon

ruary

27th

Broad

Street, New York City.

jk.

the

Volume 161

Number 4362

THE COMMERCIAL & FINANCIAL CHRONICLE

Puget Sound Power & Light issuers, their officers and their
Co.T The application for trading directors, to "substantially equiva¬
in the Northern Natural Gas Co. lent duties and
obligations" as

be freely admitted to the unlisted

and

SEC Bars Unlisted Trading
On Curb in Five Stocks
Upholds NASD and the Issuers' Protests Against Exchange
Necessity for Imposing Restrictions on Issuers
Officers Equivalent to Those Required on Regularly Listed
If Applications Were Granted. Rejects Compulsory Listing
SEC Points to

the

Registered Company under
Public Utility Holding Act,

and

that

was

Dealings.
and Their

Securities

case,

its

kind

curities
sion

Feb.

listed

the

activities therein to render the

Exchange Commis¬
Philadelphia denied the
of

the

Exchange to extend
trading privileges .to

common

stocks.

plication

was

The

sary

Curb's

sufficient public

protection of

the

were

of the Lukens Steel Co.,

Co.,

Inc., Public
Indiana, Warner

trading

was

first

"un¬

his dealings

the

Commission

Section

the

restrictions

the

and

stocks

also

that

against "short

selling would

the

the enforcement of

"Exchange's trading privi¬
exercise of the

the

these

grant

power

privileges

the

under

Securities

based

its

unlisted

SEC

the

listed

trading

would

require that it subject the

issuer of

active

large,

Exchange

ap¬

stantially the

also

I made the
•

"■

very

trip to Georgia to find out
\

favorably: Abundant

raw

tributed

and

same

restrictions

materials

one

and

the

sent

dis¬

statutory duties

officers
the

posed

without their

conditions

same

Ji.

I U

LI " IHluU

av ft

Bfl#/* ft

Vw \J

"in effect thrust registration upon
them."

■'''

But

to me one

. ,

year-round mild climate.

low rates

excellent

ample post-war labor supply,

thing

was even more

important: The kind

°* Peop*e we must wor^ with and get
-

management in

Georgia. Here

along with. It won't take

you

long to find out

are

people—99% native-born—whose American

play is bred-in-the-bone. A people who believe in business enterprise and welcome

industry. A people with
an

power at

widespread spirit of friendliness, mutual respect and confidence between workers

tradition of fair

that

1 X

especially in the smaller towns. A sound tax structure.

n n

SUCH PEOPLE

AMONG

new

transportation facilities

;yj|

and

honest

day's

pay

deep-rooted conviction
deserves

honest day's

work. How much better it is to live and work among
,

such .people!

In many

tries,

you

workers.

of Georgia's excellent small towns where there

will find
Our

staff

are no

large indus¬

PLANT the Future in

ample post-war supply of intelligent, adaptable, friendly

of industrial

engineers

has assembled accurate data

favorable industrial sites for specific lines of manufacture. Write Industrial

Development Division, GEORGIA POWER COMPANY, ATLANTA, GEORGIA.

im¬

registered companies. It

tha*- there is

plenty of good soft water

con¬

would, in the words of the SEC,

should

issue

the unregistered companies and

their

registered,

widely

Other¬

important thing. Our Engineers' report had been
A

•

HOW MUCH BITTER IT IS
.,0. V-A-::

registered securities, should be

"exercised with caution."

"4t is right

active

be freed of the

Dependable electric
V-

Ex¬

wise, it would amount to imposing

grant

privileges,

contended, then

that every

the ground

mean

"proxy" regu¬

attached

trading

decision

denial

It would

f"H«usw

com¬

change Act, which requires sub¬

If these "statutory duties"

not

were

vicinity" of the

However,

SEC

lations.

that to grant the privilege of un¬

Merck &

for the

or more

be required to report

Fall, and hear¬

It added that

holder of 10%

leges,

unlisted
brought be¬

imposition

in view of the fact that the

listed" company's securities would

panies did not voluntarily apply

ply to them."

Curb.

Service Co. of
& Swasey Co.,

existence

equivalent duties."

larly applied for registered list¬
ing.
This would mean that any

conducted, at which
attorneys for the NASD and for

the

which had regu¬

concerns

were

definition of "the

common

the

was

relating

The stocks application
mainly

Exchange Act of 1934.
involved

Exchange "sufficiently widespread
public distribution of such secur¬
ity and

the

provided for by Sec¬
(3) of the Securities

12 (F)

tion

ap¬

made on the ground
there exists in the vicinity of the

for

investors,"

companies, presented their ob¬
jections to the Curb's application.
A point in question related to the

and appropriate in the public

interest

un¬

five

ex¬

of unlisted trading neces¬

tension

York

New

ings

holder

of the shares.

fore the SEC last

Se-*~

and

application
Curb

19 when

was

which

stocks

common

A contest between the securities exchanges and the over-thecounter dealers, for the time being at least, was brought to a con¬

10%

The
of

Policy,

there

than

;

clusion

those of

conditionally approved
by the SEC, for the reason that it
was

trading without consideration of

GEORGIA

'ly^z-JmUM^Inr^wwAMwefclv,^ u

sals

For Exchange
•'

(Continued from page 826) -

which
provdes for stabilizing the cur¬
of the

rencies

that be¬

countries

participants in the scheme.
to
bring about
stabilization of the currencies of

came

Furthermore,

members

would

necessary

budgets
income.
absolute

for them to balance their
and

live

within their
budget is an

A balanced

prerequisite to the stabilization of
the currency of any country.. No
slightest hint is given in the Bretton Woods proposal that even re¬

bal¬
ancing budgets as a requirement
for stabilizing currencies. '.
..••
motely suggests the need for
.

This

can

(a)

misleading.
of article IV pro¬
very

Section

vides

follows;

The par value
■

single

does not create*, a
money for the world.
Jt

each

of the currency

member

shall

ex¬

pressed in terms of gold as a
common

terms of

lar

...

What

"'used

there
money

terms

state

shall

for

fineness

the weight and

effect

denominator

the United States dol¬

July
could

1944.

designate' the' interna¬

tional unit of value. y*
The

„

President, in his message,

denies
that
the
to set up a "supergovernment," which also is un¬
true.
The Bretton Woods propo¬
sal, even standing by itself, pro¬
poses
the
establishment of a
world
government.
The body
governing the fund' would-" be
categorically

vested with broad powers

to pass

would

vitally

legislation

which

internal policies of the
United States as well :as other
countries.
Most of the decisions
of the fund would be effectuated

possibly

plainly that
created a single

international transac¬
contained in this

majority

United

paragraph?
It provides that the
par value of the currency of each
member •; shall
be expressed in
terms
either in some unnamed
unit of gold or in terms of the

27% of the votes,

States

Since

vote.
would

tions than those

the

have- only

the other

coun¬

far
as
this aspect of the apportion¬
ment
of
control
is concerned.
Article XVII provides for amend¬
United States dollar.
ments
to the
proposals of the
It provides for amend¬
Now, whether the par value of scheme.
.the currency of a member was ing every provision in it with
expressed in terms of a gold the exception of three, namely,
the right to withdraw- from the
unit or in terms of the dollar, the
arrangement would of necessity fund, the provision that no change
eventuate in a single currency for in the members' quota shall be
the world, certainly for interna¬ made without its consent, and the
tional financial transactions.
The provision that no change may be
made in the par value of a mem¬
par values of the currencies of all
ber's currency except on the pro¬
member countries would be reg¬
This last,
ulated by either a selected unit of posal of': that member.
does not apply to the provision
gold or the dollar
making •. uniform
Should it be argued that the relating > to
unit of value chosen to regulate changes in the par values of mem¬
values of members' cur¬
rencies applies only to the trans¬
actions of the fund, that it would
not involve those exchange trans¬

the

par

tries

would be-:ih-control,

bers'currencies.

■■

appraising the true signifi¬
cance of this proposal for an in¬
ternational
monetary set-up, it
In

created this in¬

the world body in a manner

sim¬

world government is not
in harmony with the thought ex¬
pressed
by the
father of this
scheme,,.;; Lord T John
Maynard
Keynes.
In his proposal for an
International Clearing Union, he

district

and un-

With it, they will
fall into their place as parts of
supported.

tional Government

are

few

examples of the

would

that

legislation

power

majority
vote amend article IV, section I
could

fund

(a), which provides that the par
value
of the
currency
of each
member
shall, be
expressed i$
terms

gold

nominator

*in

fineness

sources

in effect on

weight
July 1,

balances.

quota.

proposal provides for the
payment of small interest charges
on loans made by the fund.
This
could be stricken by a majority
vote so as to reduce or even elim¬
inate
all
interest
charges.
It
should be recalled that MorgenThe

contained no
provision for interest charges.
By
amendment
the
United

thau's draft proposal

could

States
assume

Britain

be made

debts
to

American,

India,

upward

Great

South

Scandinavian,

other countries

might

set

$12,000,000,000.

should be remembered that

titled
of

the

request the

the

governors

This would pro¬

not

raise

foundation

Union

affecting

issues

the

Clearing

might be made to serve.

In line with Lord

Keynes' sug¬

gestion for world government, the
President
recommended in the

report of the hopes and

;

people

question will be asked: "What did you

reply: "I

was

in the midst of the fighting," or "I was

carried on
observed the ration rules —
debts — kept the children in school — laid a little aside

war

work." But the great majority will say: "I just

the

job. I bought war bonds

do in

;

—

for the future."

Just carrying on never seems important, yet

it is, because it is

carrying on in the right way which makes America a land dif¬
ferent from all others. Playing the game fairly — keeping the
home

together—giving the children a chance to share the future
our lives in the way of our own choosing —

America—living
In

"modified life"

our own

futures.

John Hancock seven million

for the purpose

people are banded together

of making these hopes and ambitions come true.

82nd Annual

Report

December 31, 1944

substantial amount of

Total Admitted Assets

$1,631,326,701.06

Total Liabilities

$1,489,962,489.71

General Surplus

;

office

$141,364,211.35

Fund

Securities carried at $296,707.00
are

Office

deposited for

purposes

$6,803,793,028.00
in the above statement

required by law

all approvedforms oflife insurance in large or small
amounts, irtcluding group coverage; also annuities for individualsandpen¬
sion and retirement plans for corporations and educational institutions.
This Company offers

j T

Prudential
INSURANCE

COMPANY

A mutual

HOME OFFICE

AMERICA

Life Insurance Company

life insurance company
NEWARK, NEW JERSEY

Guy W. Cox,

a copy

of the

Boston. Massachusetts

Chairman of the Board

complete

any

the
fundamental constitution of the
proposed Union. It is mentioned
here to complete the picture of
the wider purposes which the

Total Insurance in Force

and need not be'
this place

does

paid

designed to provide low cost
protection right from the start. Let a rep¬
resentative show you how little you need

write Home

ambitions of 7,000,000

are

this paper;

It
Mor-

which

discussed adequately

important

the account except by

providing for

Call local

This is a large

question

important

because

country to its order
and permit no further transac¬
its authority.

the

cycle, by ex¬

examined at length in

clearing account of the de¬

life insurance.

and

cannot be

Clearing Union to hold

combating

means

ticular sections.

linquent
tions

primary products,
to possess in

come

contractionist or ex¬
influence on
the
system as a whole or on par¬

body

policing

con¬

stocks

ercising

which
may be charged with the duty
of preserving
the peace and
maintaining international order.
If any country were to infringe
its properly authorized orders,
the policing body might be en¬
national

and

genthau's two first draft p/opo-

AT YOUR AGE

•

pansionist

favor of any super-

account in

con-

together with

control of

evils of the trade

y * - *

...

Union

The

which amount to

OPPORTUNITIES

lay aside for

ful

surplus credit

to directly

Egypt,

owed

levy

commodity

of
the

for

might

out of the reserve fund
of the Union, or, if necessary,
a

these three institutions a power¬

bodies, the overdraft be¬

development corpora¬

of the staple

years

out

scheme

by granting preliminary
facilities in favor of

ing discharged over a period of

trols

overdraft

these

tion is also set up

other

from

received

tions

the

country to borrow in excess

its

ment

much further than this. For
might supplement contribu¬

de¬

provided that a country
may
borrow from the fund an
amount equal to its quota.
This
could be changed by a majority
vote so as to make is possible for
a

Some will

There are various methods by'
which the Clearing Union could
use its influence and its powers *
to maintain stability of prices
and to control the trade cycle.
If an international invest¬

rehabilitation,

relief,

the war?"

policies

cerned..".

ternational bodies charged with

post-war

country

the

account ; of

annual

the

them

for

matically debiting the clearing"

set

might

1944, and make the unit of value
of the world whatever it pleased.
It

Union

common
terms

United States dollar of the
and

ordered scheme.

The

linked

might be

board

and reconstruction. But it could

given to the scheme.

The

T granaries'
attacked.

for interna¬
It might act
behalf of such a board and

collect

clearing account in favor of in¬

der the Constitution.

Here

whole un¬

as a

buffer stocks

j - service of their loans by auto-'

■

but at the same time also the Na¬

Union

with

^developments T will- find

themselves, impeded

The

able

problem

tional investment.

the

of the future economic
government of the world. ,;
jv:. Without it other more desir.

and y ever - normal
could be effectively

SOME DAY the

The Prudential's distinctive

cial

pivot

mum.

agreed maxi¬
By this means the finan-'

counts

says:

The Union might become

by ;,

them

allowing-

bodies,

overdraft facilities on their ac-

set up a

particular

such

President Roose¬

velt's statement that this does not

h'is

international-body.

Furthermore,

commodities held

stocks

■

a
commodity.
might
finance-"

and

control,

•

ilar to that of a Congressman rep¬

resenting

•

management

ternational scheme could be made

;

financial blockade,

Union might set up an
account in favor
of interna¬
tional bodies charged with the
The

■

by the

excellent machinery for

enforcing

Numerous other similar changes

fhe President an integral part of

scheme proposes

...

vide

suggestion

for the assumpr

in the law which

place

affect the

the

Keynes,

debts.

Stabilization

"Bancor," or Morgenthau's
"Unjtas," or any one of numerous
other terms which have been sug¬

gested to

further.;

The President says

took

provided,

Lord

tion by the United States of those'

outside should be realized first of all tha
the Congress of the United States
the fund and that, therefore, the
would lose its. power over our
unit of
account chosen by the
which
the
Constitution
fund would not become a single money
vests in it.
That power would go
world moneys the answer is that
to
the international body.
The
there cannot be more than one
President,' as the representative
international standard of value
of the United States, would be in
In fact, the Bretton Woods pro¬
control of 27%
of that power
posal takes care of this by vesting
With respect to some of the pro¬
in the fund the power to regulate
he
would
have; wha';
and control the world price of visions,
might be termed veto power, but
gold.
•
• ;
v'..',.: J
: : ::;
it must be realized that the pur¬
Furthermore,, the way is left
open in
this paragraph for the poses and general plan of the
scheme are such as would, make
adoption by the fund of Keynes'
actions -that

tary fund contains anything

Provide

Says Bietton Woods Proposals Do Not

Thursday, February 22, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

844

Paul F. Clark,

annual report will be

President

sent on request

'.Volume 161

Number 4362

THE COMMERCIAL & FINANCIAL CHRONICLE

Broker-Dealer Personnel Items

;

If yen contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.

..•.'(Special

The

Chronicle)

Financial

..(Special

LOS

BOSTON, MASS.—II. Robinson

mond

sociated

Federal Street.

.VV

(Special to The

Chronicle)

Financial

Kidder

Trusteed Funds, Inc., 33 State St.

has

joined

staff

the

Financial

Gross,

Company,
*

(Special

The

with

Street.

BOSTON, MASS.—Dorothea SI

Chronicle)

|Iplie£Equitable-wg::

v---'

ANGELES, CAL. — Ham¬
W. Jones has! become as¬

Hyde is with Russell, Berg & Co.,

PALM

639

The

Court

Van

South

LIFE ASSURANCE SOCIETY OF THE UNITED
STATES

Spring

■

Financial

Chronicle)

reports on; its progress in

BEACH, FLA.—William

(Special

KANSAS CITY, MO.—Philip G.
Hovey has become associated with

Prescott,

(Special to The Financial

Chronicle)

Whiting,

West Sixth Street.

Weeks

And Electric Bonds
Co.,

Inc.,

group of
135 dealers
Feb. 21 offered $35,000,-

000

Oklahoma

Co.

first

mortgage

due

Feb.

1, 1975, 2%%, at 101%

and

Gas

and

Electric

bonds, Series

interest.

accrued

Proceeds

from the sale of the bonds are to
be

applied towards the redemp¬
tion of all of the $35,000,000 first
mortgage bonds, 3%% Series due
1966, presently outstanding.
The bonds,
in the opinion of
counsel, will be secured by an
indenture which, except for per¬
and

encumbrances

missible

cer¬

tain express exceptions, will con¬
a first mortgage lien
upon

stitute
all

property

owned

now

the

company.

Associated

with

Halsey, Stuart

Co., Inc. in the offering are:
Bear, Stearns & Co. Hallgarten &
Co., Otis & Co., Inc., Phelps, Fenn
& Co., R. W. Pressprich & Co.,
William Blair & Co., Putnam &
Co., Granbefy,;
Haupt & Co.,
The
Milwaukee
Co.,
Mullaney,
Ross & Co., E. M. Newton & Co.,
Allison-William Co., Ames, Ernerich & Co., Inc., Arnhold and S.
Co.,

Dempsey

Marache & Lord, Ira

Inc.,

Bleichroeder,

Atkinson,

Co., Atwill and Co., A. E.
Aub & Co., Auchincloss, Parker &
Redpath, The Bankers Bond Co.,
Inc., Barrow, Leary & Co., Jack
M. Bass & Co., Baum, Bernheimer
Jones &

Sheldon

Bingham,

Co.,

Bioren &

Braun,
Stokes

Co.,

Co., Boettcher and Co.,

Brooke,

Co.,

Monroe

Co.,' Caldwell

dall.

Tin-

Phillips

Co., John B. Carroll & Co., C. F.
Cassell
&
Co.,
City Securities
Corp., Richard W. Clarke & Co.,
Cohu & Torrey, C. C. Collings &

Co., Inc., Cooley & Co., Courts &
Co.,
Cruttenden & Co., Dallas
Union Trust Co., Davis, Skaggs &
R.

Co.,

Day

Co.,

Robertson & Pancoast,

The

Financial

The

Chronicle)

ORE. —Carl

of Conrad, Bruce & Co., 316 West

needs

Sixth Avenue.

holders through co-operative
action to achieve security to

Co.,
Inc.,
Heller,
Co., J. H. Hilsman & Co.,
Inc., Hirsch & Co., Indianapolis
Bond and Share Corp., Janney &
Co., Jenks, Kirkland & Co., John¬
son, Lane, Space & Co., Inc., Kalman
& Co., Inc., Thomas Kemp
& Co., A. M. Kidder & Co., Laird,
Bissell & Meeds, Loewi & Co.,
Martin, Burns & Corbett, Inc.,
Marx and Co., Mason-Hagan, Inc.^
Mason, Moran & Co., A. E. Masten
& Co., Morris Mather & Co., Mc¬
<

Donald-Moore

The

tion.

C. Wainwright & Co.,
Co., Watkins, Morrow
Co., Watling, Lerchen & Co.,
Weil & Arnold, Welsh, Davis &
Co., Wheelock & Cummins, Inc.,
White, Hattier & Sanford, The
White Phillips Co., Inc., George
H. Willis & Co., Woodard-Elwood
&
Co.,
Wurts, Dulles
&
Co.,
Wyatt, Neal & Waggoner, F. S.
Yantis & Co., Inc., and Yarnall

Equitable during the past

Greenman

Ellis

Son,

There has been

personnel

here referred to the fol-

change in the
com¬

Mr. L. V. Francoeur, Pres¬
ident, started in business in 1933
pany.

Francoeur

Company,

becoming Francoeur, Moran
Company in 1938.

ex¬

of the food

perience dates back to 1914, hav¬

agriculture organization of
United Nations, broadening

ing been associated with Peabody,

The establishment

strengthening of the Trade
greements Act of 1934, j.nterttional agreement for the reiction of trade barriers, the
ntrol of cartels and the orid

;rly marketing of world suruses
of certain commodities,
revision of the Export-Import
mk, and an

international oil

reement.

purchased in

was

tribute

to the

fore¬

tribute to the work of

Equitable agents in carrying the story of
life insurance and Jts benekts to the
public.

Life insurance is

serving well in the war#
enlarged its protection
Family. It has helped those

It lias extended and

of the American

It has encouraged

the

financing of the

In the peacetime future of
life insurance will be

our

much to their welfare and

factor. \\ bile

continuing as a bulwark of
family security, its investment funds will
help industry speed reconversion and ex¬
pand production, thereby providing jobs#
Life

played

insurance

investment

funds'have'

important role in thesdevelopment
of America. What life insurance has done in
an

the past to

aid the national

economy,

it will

scale and with

larger

inspiration in the America of

mean

country ^

equally dynamic

need for the

must

greatly

war.

protection that life insurance
Vprovidesy ; tend to deiei* lis purchase and

thrift and

combated inflation. It has contributed

Most people, even: though they realize their

on an even

vaster

tomorrow.

persuaded to do that which will

happiness.

The aggregate of
the year-end was

Equitable protection at
$C, 897,754,000—a record.

Benefit payments
their

families

averaged
throughout the past

policyholders and
$26,000 an hour
year,

total of

$230,992,000.
The increase in dividend rates

most

free

types of policies, put into effect last year, is
being continued for 1945, thus maintaining
the low net cost of

distribution

real-life pictures
and examples. Helps you

Equitable protection. An

policyholders

arrange your own

insurance

dividends

obligation.

The

Equitable continued to grow in finany
strength during 1944, assets increasing
$318,329,000, a larger gain than in any pre¬
are

life
the

j
.

Fill in

coupon today and
send to local office be¬
low or to 393 Seventh

cial

Total assets

get

greatest values.

during 1945.

vious year.

booklet

—with

aggregate of $43,801,000 is scheduled for

Avenue,

New York I, N. Y.

$3,507,983,000.
Name

Holdings of\ United States Government
Address

obligations have increased to $1,568,317,000, representing policyholder funds direct¬
ly helping to speed victory. In addition

City aud State

Mutual Company Incorporated under the Laws cf New York State

Houghteling
1929,

which

Company
time

until

became

Resident Manager of Hale, Waters
&

Company, Boston, Mass.
The firm deals in general mar¬

ket securities

and, in addition, has

specialized during the past several
years

in church and

financing.

institutional

Thomas I. Parkinson, president

•

DECEMBER 31,

Assets

1944

„

Reservesr Other Liabilities and Surplus

Cash

69,233,004

Reserves for

(Including $6,157,046 on
deposit with public authorities)

$3,195,182,932

Policyholders' Prepaid Premiums.

United States Government Bonds

Reserve for

1,186,278,055

Miscellaneous Liabilities

Preferred and Guaranteed Stocks.

29,217,393

Common Stocks.

;

Reserve

Accrued........ i..............

24,618,683

Premiums Receivable and Other
Assets, i.
Total Admitted Assets
In accordance with requirements of

26,868,388

$3,507,983,461

Apprecia¬

Non-Amortizable

24,360,689

(Excess of market or amortized value,
whichever is lower, over ledger value)

Total Reserves and Other

-■

■

Liabilities
$3,321,633,800
Unassigned Funds (Surplus)181,719,661
Other

Unrealized

43,801,346

Bonds and Stocks

130,187,180

Interest and Rentals Due and

for

8,820,000
8,516,012

Apportionment

tion in Value of

49,780,359

Society's Policies

the market quotations

1945 Dividend

422,600,542

Real Estate.

Loans

882,857

40,952,821

Taxes......,v......7.

1,563,317,000

;:Other Bonds...................

Mortgage Loans

Policy and Contract

Liabilities

Bonds

the

Mr. Francoeur's investment

to the American:

average

yield of 3.51%.

to the war economy of the' na¬
total of $609,026,000 of new

It is likewise

■

officers of the

firm
;sage

year con¬

THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES

Now Francoeur & Co.

Anderson,

Inc., Hannahs, Ballin &
Lee, Harley, Haydon & Co., Car¬
ter H. Harrison
& Co., Robert
&

Equitable made diversified investments
corporate securities in 1944 at

& Co.

Dewar,

& Cook, Inc., Gregory

the purchase of Government
securities, The

in distress.

sight and patriotism of a large proportion
people, who are refraining:
from spending their
money needlessly and
instead are putting it aside for the future.

Dittmar &

not be

of the American

Corp., H.

Co., John M. Douglas, R. J. Ed¬
wards, Inc., Clement A. Evans &
Co., Inc., Farwell, Chapman & Co.,in the firm name to Francoeur &
Ferris & Hardgrove, The First
Cleveland Corp., Foster & Mar¬ Company, as of February 15, 1945.

Green,

in usefulness

1944. This volume is

Wachob-Bender

Washburn

enable policy¬

Equitable life insurance

Tyson,

human

public and

ricka &

ney

serve

degree that would

tinued to grow

Co., McMaster,
Co., Wm. J. MeCo., Inc., Metropolitan St.
Louis Co., Milhous, Martin & McKnight, Inc., E. W. & R. C. Miller
&
Co,, Minsch, Monell & Co.,
Moors & Cabot, Mosle and Moreland,
Nashville * Securities
Co.,
Newburger & Hano,
Newhard,
Cook & Co., Nusloch, Baudean &
Smith, Alfred O'Gara &
Co.;
O'Neal, Alden & Co., Inc., Pacific
Co, of California, Park-Shaughnessy & Co., Patterson, Copeland
& Kendall, Inc., Peters, Writer &
Christensen, Inc., Piper, Jaffray &
Hopwood, F. L. Putnam & Co.,
Inc., Quail & Co., The RansonDavidson
Co.,
Inc.,
Rauscher,
Pierce & Co., Daniel F. Rice and
Co.,'George V. Rotan Co., Russ &
Co., Scott & Stringfellow, Seasongood & Mayer, Robert Showers,
Sills, Minton & Co., Inc., Smart &
Wagner, Inc., Starkweather & Co.,
Sterne, Agee
&
Leach, Stifel,
Nicolaus & Co., Inc., Stix & Co.,
Walter Stokes & Co., Thomas H.
Temple Co., Thomas & Co,. E. W.
Thomas and Co;, Townsend, DabHutchinson

—

possible through individual effort alone.

CHICAGO,
ILL. — Francoeur,
Moran & Company, 39 South La
Salle Street, announces the change

shall,

PURPOSE of The

Equitable is

Bruce &

Offers Oklahoma Gas
Halsey,;; Stuart

Stubbs,

B.
Weigel has been added to the staff

Hawkins

which

A.
with

Street, Boston, Mass.

(Special

Peirsol,'Jr. has become coninected with Blyth & Co., Inc., 215

Chronicle)

ME.—Lester

PORTLAND,

headed

Financial

affiliated

-"j

ANGELES, CAL.—Thomas

Halsey, Stuart Group

The

King has become
Federal

LOS

PORTLAND,

Wright, Snider Co., 916

Baltimore Avenue.

serving human needs

Chronicle)

Financial

The

•;

H. Cates is with Truman A. Lifsey

Co.*.First National Bank Building.
(Special

845

Contingency Reserves

4,630,000

Total Reserves, Other Liabilities
and

Surplus

$3,507,983,461

law, all bonds subject to amortization are stated at their amortized value, all other bonds and stocks are valued at
furnished by the National Association of Insurance Commissioners or at amortized value (in the case of
bonds),Whichever is lower.

Thursday, February 22, 1945

THE COMMERCIAL & FINANCIAL CHRONICLE

846

States,—in contrast of
in Canada,—place
great reliance upon government
machinery.
Even a perfect set of
international
organizations
will
not work unless we stay on the

the United

CTIVE MARKETS:

course

SPECIALISTS

50 BROADWAY

job and make them work.
Our
task has just, begun,_ '
,,
The strength of any organiza¬
tion to enforce peace will depend
also on the military strength of its
members.
While we hope that the

Real Estate Securities
REAL ESTATE

Since

1929

6s 1946

SECURITIES

Incorporated

4's

39 Broadway, N.Y. 6

HAnover 2-2100

Broad Street, New York 4

SIEGEL & CO.

York Security Dealers Association

Neio

Members

Hotel St George,

provision of means to settle dis¬
putes peacefully and the influence,
a world organization will pre¬

Seligman, Lubetkin & Co.

Primary Markets in:

vent war, we cannot be sure.
almost every generation there

7 IMgby 4-2870

Teletype Nlr 1-1042

X65 Broadway

Real Estate Securities

N.Y. Athletic Club 2-5's

★

' :'v •:

SHASKAN & CO.
Exchange
York Curb Exchange

/Members New York Stock
/Members New

40 EXCHANGE PL.,N.Y.
Bell Teletype

Dlgby

properties and secured satisfactions of 4 mortgages.
Since the
appointment of the Trustees 59 properties have been sold and satis¬
12 mortgages have been secured.
The book investment
in the 11 properties sold in 1944 amounted to $415,520.
An asset
gain to the Trust Estate in the amount of $18,391 resulted from these

4-4950

NY 1-953

factions of

The

sales.

which were satisfied
$323,757.20.
They

mortgages

amounted

satisfied

were

the

cost

book

discount

Total cash income

only $5,442.34.

for 1944 from mortgages

amounted

estate

and real
$602,421.64,

equivalent to a 5.27% return on
the book cost.
During 1944 prin¬
cipal distributions totaled 6% and
distributions

interest
on

Real Estate

totaled

the reduced face amount of the

certificate which

of Jan. 1,1945,

$830 for each original $1,000.

was

Series C-2 Mortgage Certificates

Securities

During 1944 the Trustees sold
properties and mortgages having
a book cost of $5,408,609.53.
New
mortgages created by sales of
properties amounted to $2,535,000.
Cash received from sales amount¬
ed

Prudence Bonds

•mm

★

«*■«»

JOYCE, KUEHNER & CO.
Members

Broadway

Security Dealers Ass'n

New York, N. Y,

to $1,920,362.65.
The sum of
$473,946.22 was received on ac¬
count of the guaranty and general
claims and allocated to the prin¬
cipal account. The principal prop¬
erty. held by the Trustees at the
beginniiig of the year amounted
to $22,509,915.92.
At the end of
the year it had been reduced to
$19,265,205.60. Assets in the prin¬
cipal account as of Dec. 31, 1944,
included 33 mortgage and 32 feeowned properties exclusive of the
Hampshire House.
Interest dis¬
tributions for 1944 totaled 4%,

principal distributions 10% to

Teletype: NY 1-2236
Telephone: Dlgby 4-5544

face

the

duce

amount

re¬

each

original $1,000 certificate to $820.

Series

F-l

Mortgage

cates—During

1944

the

relations

country

enlightened

and

These

the

are

Certifi¬

Trustees

sold 2 properties for all cash to-r

and

between

mine

democratic

thinking
In addition to

jective.

and
our

again

chance

ob¬

work

only if

resented by purchase money mort¬

Total cash in the principal
at the beginning of the

How

amounted to $268,410.24. This
increased by the cash from

must

gages.

account
year
sum

sales and from amortization pay¬
ments

and

sale

shall

carry

can

tions,

distrib¬

$1,629,821.27 principal to cercificate holders and leave a cash

ute

principal account balance at the
end
of the year amounting to

that there is

sure

First,

let

1944 by $767,466.08 as inter¬
mortgages and by $303,655.67 as net rent from properties
owned plus some miscellaneous
on

items enabled the Trustees to dis¬

price

with

about

$990,141.58 as interest and
cash balance of $29,961.96.
At Dec. 31, 1944, the trust col¬
lateral consisted of 89 mortgages
owned,
amounting to
$18,725,-

paying

between

must

never

God—that's
most

and

Then

thoroughly

countries,

tions,
:

Instruments

heart and

Our Democracy!

International

(Continued from first page)

Specialists in

REAL ESTATE

impulse
and
objective
have
passed.
We must do so for our
own
future,—and for the future
of that way of life we call democ¬
racy.
For you and we have a
peculiar responsibility to democ¬
racy.

Your

SECURITIES

earned

achievement

war

has

highest admiration.

In
First
Army has again led the way. Your
war production is magnificent.
the

our

latest

offensive

State War Finance Committee for
the Third and Fourth War Loans

constantly faced the comparison

between
with

C. H. TIPTON
SECURITIES CORP.
Members of If. Y. Security Dealers

Ass'n

111 BROADWAY
New York 6, N.Y.

New

14 million

York

results

peopfe and

with 12 million. | Youied

yours

us a

hot

race in the thoroughness of your
organization and coverage and the
response of your people.
Figures
are hard to compare but I confess
to a belief that; you have rather
consistently made a little better

record than

You

Telephone WOrth 2-0510

our

have.

have

definitely surpassed
country in your willingness to

tax

yourselves.

From

the

first

of war you have raised 44
cent of your budgetLwith tax¬

year

per

Gillett With Fewel & Co.
LOS

ANGELES,

CAL.—Frank

es—we

Since
the

have
have

cent.
doubt you feel
per

pain,

you are entitled to the
As to price control, with

W. Gillett is affiliated with Fewel

credit.

& Co., 453 South Spring Street

all proper

raised

discussion

before

quested.

democratic
so

qualifications and rec¬

way,—embarrassingly
countries in

two

have

similar

strides

toward

fective.
tions

the world

concept

and

practice of democracy.
We both
Magna Charta and the
succeeding
development of the
Common Law with its protection
inherit

In the

all

life.

Democracy

attempt to make

They

good of all.
passing can anyone cite a
example of democracy be¬

tween

nations

than

the

British

cover

moralities.

such a diversity of
interests, 7 and
even
We

must

plans just as simple
standable as possible.
The

second

and

organization we may
leave it to be run by

written

constitution

It lives by loyalty, by

and consider our

our

set up an
walk off and

civil servants
job done. We in

de¬

Bill of Rights, our Su¬
and our carefully

Court,

gotten

the

needed

have at times for¬

continuous

protecting

vigilance
individual
;

•

they
come
gradually and inconspicu¬
ously, here a little and there a lit¬
tle, gaining control more and
more

without seeming at a given

moment to be

doing anything

alarming.
:

very

The intentional

enemies of de-

moracy, the avowed
are few in
number,

totalitarians,

but they are
blooded, unscrupulous, and
skillful; and they infiltrate ideal¬
cold

istic groups.

You and I, however

are mostly to blame when we
ad¬
vocate government controls to
get

special

serious

danger is that having

our

and under¬

Commonwealth of Nations? There

agreement.

keep

our

some

It is characteristic of many sub¬
versive political changes that

ef¬

Woods suffers from this weakness.

languages,

lost

our

rights.

these in¬

elaborate, in

Experience has demonstrated the
difficulties of; running interna¬
tional committees or Commissions.

compulsion to those few

better

shall not

free will of its citizens

sential for the

action

contingencies,
get" them work¬
ing promptly, or thdy will break
down from the weight of their
machinery.
I think Bretton
that

from the

es¬

fronts

Well, do
honestly

and most of that is

needed and

proposals.

fort to anticipate all

and limits

situations where obedience is

tion,

necessary.
The principal dangers
as
I see them are first that we

shall

individual

these

cherished political traditions were
all
the
safeguards our country

trade.

form

it?

have

preme

plans are

in the

the Bretton Woods

{

own
fault.
We have taken too
much for granted. We in the U. S.
have assumed that our Constitu¬

ef¬

sugges¬

world

of finance,

advanced

further

struments

the

also

are

deal with

area

of the

places responsibility for man's
growth upon ,his own shoulders.
It gives the individual freedom of
choice, personal integrity, and op¬
portunity.
The democratic state
rests on and derives its strength

them

mocracy,

took further

and

How much do

re¬

world

fundamental

believe

court, for an
economic council, and an organi¬

even

rights of the individual,—
though he may belong to a
minority. That is the essence of
democracy—the supreme worth of

was

ourselves,

democratic way of life.

three-power

making

There

for

action

the

Yalta Conference

zation to

sometimes.
No

your

As Chairman of the New York

that there is no good
of price control, I suspect
have done that better than
we.
You have had the political
courage to make a gift to a War
partner,—and call it a gift.
All of this you have done in the
ognition

you

strong

Dangers to Our Democracy

we?

Dumbarton
Oaks proposals are a' start, and
they were wisely put out for wide

form

urgent.
It is simply this: All of
us give lip service to
demorcracy.
We say that we believe in the

The

peace.

peace all of us now are generally
agreed, and that is the establish¬
ment of a world, organization to

enforce

what

handled; or what's going to
happen about taxes, or how badly
we may be hurt
by inflation. But
there is one problem which is far

step in the program for

one

Peace

Let Us Preserve

then

rightly
concerned
about
such
problems as how reconversion will

enemies.

this

Now let's think a little about
the internal problem;
*: The bankers and business men
in our two countries
today are

rubbed

machinery of life that we
never again be so unready.
It was our very unreadiness which
tempted and gave courage and
our

the

have and hold strong friends. 7

the

do to preserve our democ¬
from aggression: have inter¬
national organization to keep the
peace and organize economic rela¬

organize

One

racy

shall

confidence

book cost of $3,494,508.30.

must

done."

satisfying

must

That means first that we
must go ahead now and do a com¬
plete clean-up; so that the lesson
well

important thing is

features of the
was its provision
for continuing discussions.
/ In
our
relations with other

come

The

should really understand%
other through contact.
We

Yalta Conference

again.

ourselves^in mind and

all

define

deliberately and
vigorously,—and unlike signing a
treaty we must never say—"Thank

and hu¬

in.

properties owned at

attempt

unnec¬

must go about it

great

human

leave

458.39 and 19

firm

some

each

our

democracy—

preserve our

There stood

Why pretend it is not so?

Nations.

countries.

other

are

tribute

ture. '

essary

striving and
suffering, and human life. > We
came
dangerously near ^ losing.

ing

languages, history, and cul¬

commitments it would be

miliation^ only a>few planes7in
$247,762.67. The income account- British skies, only a few soldiers
cash balance at the beginning of on Egypt's bloody sands and a
the year amounted to $39,980.36, few ships in a strip of water about
this balance being increased dur¬ Australia.

est

less

due

space,

that

think

price

shdll

some

inevitable

While there must be

Today
price to

This

and

ies, just as a charter is not needed
for the British Commonwealth Of

relations

Trustees

close.

In na¬

people, -Vwe

with

have close friends

these relations with precise treat¬

amounting to about $329,000 plus

the

organization Will succeed
few principal powers get

and

to pay.

mortgages

it forward—and what price
we pay to
do so?—for we

$334,000
claim money received
plus a few miscellaneous items
enabled

nourish

not

is the fashion

back of it and make it go.-

out
con¬

share.

must

our

World

,$373,000.
Also 16 7 other tributions to democracy—rooted
properties were sold, the total upon old and valued traditions
sales price being $4,005,000, the but with an even freer air in
which to grow.
sum of $638,500 being received in
cash and the balance being rep¬ ■{ That is( our heritage and our
which

prepared

country to decry alliances
and call them power politics.
But

taling

opportunity

arming

.-/v/'.

friends.

strong

com¬

continent hew

this

cannot

chance

starts.

war

society is more fluid; the oppor¬
tunity of the individual is greater.
have,

bombs,

only be strong ourselves but have

heritage, we share a detach¬
ment from Old World customs; our

death

take

after

mon

here

day

instruments

yet

community of in¬
in a close kinship

it lies

gressor.

another sort of

terest;

and we must be
deal with that ag¬

man,

long range planes, and other new

your

have

has
who cared not

aggressor

prepared

mo¬

tives under which democracy suc¬
ceeds or fails.

Certificates—During 1944 the Trustees sold

Series BK Mortgage

respect,

self-interest.

Digest of Trustees' Bulletins on New York Title &
Mortgage Company Series Certificate

(Park Central Hotel)

Beacon Hotel, 4's

for God
mutual

870-7th Ave. 4K's

been

4Ws

61 Broadway 6's

you

privileges.

sure

groups are the
mies of democracy

Selfish

pres¬

principal
in

our

ene¬

coun¬

tries.
The
process

has hurried up the
of increasing the powers

war

Volume 161

Number

THE COMMERCIAL & FINANCIAL' CHRONICLE

4362

of government at the expense of
freedom; for the war has made

for the government to be called in
to take over.

of half truths and glittering

dictatorship

Second, we have got to stand
guard on ourselves to see that we

eralities, and
away with it.

don't ask for the special privileges
and protections that are an open

most

people.

attractive

war

go totalitarian to

many

country must

extent.

some

have compulsion in raising an

invitation

army, -in fixing prices and wages,
in levying taxes,—these are un¬

in and

avoidable.

bankers

Post War Control Problems

;

For the moment, our whole ob¬
jective is to carry through and
win the war, but we must give
sober thought to the direction in
which we shall be moving when
the

closes.

war

The

floor

and

themselves

that

duction.

group

our

time.

who

longer

the

duction of

their

priees and pro¬

other controls such

ance

credit,,

control

and

loans.

We shall thus have increased regi¬
of crgdU.
There is

with

for gov¬

ernment loans 10 small ousnieas.

.Some

•

the

things

new

well

and helpfully.; We want to
keep and improve our old age re¬
tirement system and unemploy¬
controls

SEC,

Some

things

can

the

States,

violent

weeks

effect

the

lion

and

kind

the

Bill

established

government

lish.

of the

hall

day

long, month

after

18th

students smdy

official

essays

ruin

power

■

real
is irnpaired.

freedom

business;

your

Ipeech

which;, have helped us
forynu late : puri democra tic think-

ing?

its

bodies,, for example, our lawyers
might render a public service by
saying to the rest of us: "Fellow

and

Big

Govern-

ment

Again,
our

the great virtues

one of
economic

for themselves.

ness

has

life

been

Do you real¬

ize how the opportunity

is being
impaired by big government? The

Voters—that

into

hew employer races higher costs—
as a result of wage floors,"social

language,
quickly

means

security,

would

and

many

"reports

and

hire at
once
an
accountant and lawyer.
To meet higner costs business is
constantly introducing more ma¬
chines—a
larger
investment of
capital.
This makes it harder for
the small
added

man

has

to compete.

extension

Every

government

regulations hurts "the small
ployer.
Most small firms'

em¬

grow

from plowing back earnings; pres¬
ent

taxes

slow down this growth.

•These handicaps

terprise,—make

cut off new
it easier to

en¬
re¬

main

hear

ents

Our

tions

just
in

the

done

Well, what

can we

do about it?

walk

life

job better

and

lessen

his

the

own

excuse

Series

Inc.;

Co.,

Wertheim &

at 105.

Co.; Whiting, Weeks

Stubbs; the Wisconsin Co.

THE NEW MK, NEW HAVEN IB HARTFORD

Howard S. Palmer, James Lee Loomis, Henry B. Sawyer, Trustees

^
;'• '

v®v Tr e^tsviry Department

their

constitu¬

those

proposed

banking

United

;

NOTICE TO HOLDERS OF CERTAIN BONDS

N. Y., N. H. & II. R. R.

CO.

New Haven, Connecticut

(

•

February 19, 1945

AND,DEBENTURE

OF THE

:.&

authority of tRe United States DistrictCouirtfor the District of Connecticut under Court
Order No. 793, and subject to the terms, conditions and reservations contained in that Order, funds will
he available on and after MARCH 1, 1945, at IRVING TRUST COMPANY, ONE WALL STREET, NEW
Pursuant

YORK CITY, for

the payment of interest for the periods and
>'•-.-/vrV".-

'<«"

upon

the issues shown below:

Dates of

'V./'/yX-'

k'>.

'JvV'Vv;r c '5$;

Amount per

Coupons

$1,000 bond

Tq Be Paid

N.Y.,N.II.&II.R.R.
■:

.it*: -/,;

.....

4F4s

1st &

5/1/56

7/1/55

3J4s

1/1/56

y.::.-.-.

44
a

#N.Y.,N.H.&II.R.R.

1/15/48
3/1/47

1/1/55

(fax Free)

i/1/56

(Tax Free)

4/1/55

(Tax Free)

3 Vi s

4/1/54

(Tax Free)

1, 1942
1, 1942 and Dec.
1, 1912
I, 1912 and Nov.
1, 1943
1, 1912 and Jan.
1, 1912 and Jan.
1, 1943
15, 1942 am] Jan. 15, 1943
1, 1943
Sept. 1, 1912 and Mar.
1, 1942 and Mar.
1, 1913
Sept.
July
1, 1943
1, 1942 and Jan.
July
1, 1942 and Jan.
1, 1943
1, 1943
July
1, 1912 and Jan.
Oct.
1, 1942 and Apr.
1, 1943
Oct.
1, 1943
1, 1942 and Apr.

May
July
July
July

;

$45.00
40*00

June

(Tax Free)

\/-%i-J/
a

6s
4s

12/1/67

3!{>s 3/1/47
4s7/1/54

Consolidated Ry.

Ref.

40.00

35.00

60.00
40.00

35.00
40.00
40.00
40.00
40.00

35.00

COUPONS MUST-BE COLLECTED THROUGH REGULAR BANKING CHANNELS. Checks for payments

of interest

certificates

must

fully registered bonds will be mailed to holders of record February 19, 1945. #Scrip
Meadow Street, New Haven 6, Conn.

be forwarded direct to Treasurer, 71

*N.Y.,N.II.&II.R.R.

4/1/40

Interest from

Apr. 1, 1941 to March 1,

1945 amounting to.................

and

PAYMENT ON PRINCIPAL

$51.12
,

$39.00

Bonds both

ONE
When

peo¬

required

registered and bearer form must he presented to IRYINGTRUST COMPANY,
WALL STREET, NEW YORK CITY, for stain ping of payments when collected.-

coupons from tax free issues, only
the entire payment.
'

presenting
to cover

associa¬

States

one

ownership certificate Form 1000

1001

•

E. L. BARTHOLOMEW,

have

Treasurer

something of that sort

our

the

report to the Congress on
Bretton ?Woods plan.
What

that

report does is to give

ple

analysis

sim¬

the

complicated
proposals, show what they really
involve, and state what the bank¬
ers

believe

what

done

good

in the plan,
what might be
improve the plan.
Such

bad', and

Finally,

we
want democracy, our first
duty is for each of us in whatever

leading
in

public

Tucker An¬

Stroud

thony & Co.; G. H. Walker & Co.;

$21,557,000

How

were put into a form the
ple could understand!

and necessary

Democracy

William

Stein Bros. & Boyce;

100, and

41/2% bonds, due on March 1,1980,

bodies

bills

IIow to Keep

Merrill,

4% bonds, due on July 1, 1956, at

everyday

tnat—"

from

some

activity

democracy.

simple

legislative

our

an
employee.
They are
threats, to the.strength and vitality
our

Co.;

Chas. W. Scranton & Co.;
R. Staats Co.;

1956, at 105; $4,468,000 of Series B

sec¬

Newhard, Cook &

Co.; the Ohio Co.; Reynolds & Co.;

$26,442,335 of Se¬
bonds, due on July 1,

are

A 5%

bill, stripped of its
legal verbiage, boiled down, and
translated

regulations.

ries

Morgan

George

are

redeemed

being

Marks

Turben & Co.;

vice-president.

fluidity and the sign of that is the
freedom
with which
employees
^become employers, starting busi¬

Business

Officers

Co.; Johnston, Lemon & Co.; Lau¬
rence

retary-treasurer, and H. C. Becker,

in other

•

formed with offices at 305

our
high school
the great books and

professions we could do
more towards; public understand¬
ing of our Countries' needs. When¬
ever intricate
legislation is being
considered y by
our
law making

Small

shouldn't

why

It takes courage

has

Company

for example to criticize openly ine
who

For

carefully
studied
in
the
grades of every school. In
of the traditional courses in
century i English literature,

piace

government the more freedom of
life is restricted.

ley, Shepard & Co.; The Illinois

$52,467,335 of such bonds now
held by the public.
Slated to be

TAMPA, FLA.—The West Coast

lion in the fair.
Might it not be
constructive if the Magna Chartp
upper

is controlled by

country

freedom.

foundation

weie

and begin, to abuse its
The more the economic

power

life of

Form West Coast Inv. Co.

Eng¬

of us that exhibit stands out
the most significant contribu-

The larger the num¬
ber of government employees the
easier ic is for a party to remain
power.

ing of all of its outstanding first
mortgage debt. Proceeds from the
financing will be used to redeem

with

many

really want.

dictatorship

a
copy
of the
its main exhibit

center

All

the

dotft

cleared the way for the refinanc¬

the

Napoleon.

Rights.

translation into modern

the

power

circumstances

tion-became

World's Fair in New York

down the

ac¬

influenced to accept

not watched. The French Revolu¬

if it is

over

example: We talk of Magna

the

mainder of which is being placed
in the company's treasury.

unim¬

R. J. Bowman, President of the
railroad, said the sale, which will
net the
company
$49,855,000,

But it will boil

ress.

the left wing
work also,

are

(most of them for th§- first {Jtirnej
those simple words which were

force

countries

than

through.

year

Magna Charta

possible abuse.
The dan¬
ger is that unconsciously and by
shall

two

our

The bonds that will

offered to the public are
part#
of an issue of $60,000,000, the re-#

aginative longing to return to nor¬
malcy.
It is the ferment of prog¬

need to

month, American and foreign vis¬
itors crowded that hall, reading

centralized

bid of 99.71.

and its

cumulation

of 100.92 to yield
investment banking

City, the United Kingdom Pavil-

that specific control,

overall

United

recent

But the greatest question relates

but

are

price

How many voters have read them?
You will remember that at the

not to this

can

today about the

Webb, president; J. J. Metz,

For

for example we have bun¬
gled the management of cotton
prices and markets.
•

helping

false.

wholesome

for

us—

law makers to

our

The ferment of

Investment

must teach democ¬
have sound demo¬

responsibility

voters and

Street.

radicals.

count on
government to bungle pretty bad¬

ly,

afford

can

good service.

who

Charta

great.

that they

cating the voters

forms of soil conservation.

some

too

Pere

judge whether what is told them

our

voters

security markets
We :shall have

will

are

$50,000,000

is true

government

must—all of

cratic government only if we have

ail the

over our

under- the

give

keep

insurance.

are

issue

headed by Blyth & Co., Inc.
Subject to approval by the Inter¬
state Commerce Commission, the
group won the award of the issue
at a competitive sale Feb. 19 on

except for a few
oratory preced¬
ing each election, almost the only
people who really work on edu¬

be¬

lieve government will learn to do

ment

will

anybody
Parliament,

emotionally alert
to their responsibilities and who
understand what they are voting
about; and that does not happen
automatically.; At present in the

mentation

strong "pressure

us.

We ought to pay those peo¬

racy.

consumer

security

oyer

and

democratic

countries

future

questions

try to get more good people

Fourth,
We

the continu¬

over

op¬

pay more atten¬

Congress

ple enough

■

likely

steadily

send .just

powers

also.

the control of interest rates at low
are

has

sound

into legislative office and into the
administration
of
government

planned; also, controls over
foreign exchange operations.
We are fairly well committed to
There

the

must

are

levels.

This is the

principle.

relation

Their

basic commodities

some

government

Association

Certain

over

want

exam¬

Third, we must
to
political

National and international

controls

bankers for

are some

posed it in

the inflation

There

tion

price controls, and certain types of
rationing will continue at least for

those

Marquette Railway first mortgage
3%% bonds, Series D, due March
1, 1980, was offered formally Feb.
20

agricultural prices
means
controlling pro¬
of

are

3.33%

under

not

giving them
Why should we
voters for following the
of demagogues when
us
with
experience
know the truth are too

have

ers

committed

{for enterprises if

thing we must
guard
against and our American Bank¬

States both parties in the autumn

fear

step ,enough attention.

enough to
busy or too cautious to challenge

election

get

still the

are

potent force in the world and

falsehood?

ple

In the United

Marquette Ry.
Bonds Offered by
Group at 100.92

the obligations and risks
which private enterprise entails?

problems will be complex and we
are aiready committed in advance
controls.

Ideas

Associated with Blyth & Co.,
Inc., in the underwriting are: v
The First Boston Corp.; Harriman Ripley &
Co., Inc.; Kidder,
Peabody & Co.; Kuhn, Loeb &
Co.; Lazard Freres & Co.; Lehman
Brothers; Mellon Securities Corp.;
Smith, Barney & Co.; Stone &
Webster and Blodget, Inc.; Drexel
&
Co.; Eastman, Dillon & Co.;
Hornblower & Weeks; W. E. Hutton & Co.; Lee Higginson Corp.;
Merrill Lynch, Pierce, Fenner &
Beane; F. S. Moseley & Co.; Paine,
Webber, Jackson & Curtis; E. H.
Rollins & Sons, Inc.; Shields &
Co.; White, Weld & Co.; Almstedt
Brothers; Auchincloss, Parker &
Redpath; William Blair & Co.;
Alex. Brown & Sons; Central Re¬
public Co., Inc.; Curtiss, House &
Co.; R. L. Day, & Co.; Equitable
Securities Corp.; Estabrook & Co.;
First of Michigan Corp.; Folger,
Nolan, Inc.; Graham, Parsons &
Co.; Harris, Hall & Co., Inc.; Haw-

Pere

gen¬

often

too

to escape

sort

many

all

ourselves come running to gov¬
ernment with all sorts of schemes

guarantee their loans.

post-war

writing books and articles full

take/charge. How can-we blame the
and; business men plead leadership

for freedom

;

government

are

847

believe is

legitimate

part of banking.

there

education

one

form

which

of
we

could all

have a hand.
We could
make it the correct
accepted prac¬
tice
to
challenge
our

experts!

Some of

public men, our col¬
lege professors, and other experts
our

SERVING

NEW

YORK

AND

THE

RHODE

GREAT

ISLAND

INDUSTRIAL
AND

STATES

CONNECTICUT

MASSACHUSETTS

<K> T a.-#) tyflfiW r.XWfrU'i-s*

THE

848

YAHOU#**"

and

Mutual Funds

Gill

rent bulletins.

inclined

Actually, "the pur-

capital.

chase of

mutual fund shares

immediate
diversification."

automatic,

provides
very

would give

cation

lists

the 30
Indus¬

trial

Keynotes,

issue
stocks

Dow-Jones

the

Group Securities,

subject,

and

the

is Profes¬

of International Fi¬

Princeton

University

Consultant

Economic

Woods

Bretton

Dr. Kemmerer

Emeritus

His

Prospectus on Request

Foundation,
adviser

Inc.,

in¬

deserve

views

GROUP, Incorporated
63 wall st.

North
sponsor

beginning of the European War,
funded debt has been reduced

ment

Co.,

which

Securities Co.,

American

of Commonwealth Invest¬
,

answers

question

apparently has often been
of Commonwealth; namely,

while

60%,

current market

sold in 1939!"

Sanders, in the current
issue of Brevits, shows what "dol¬
Vance,

of Investors
Mutual reveals a continuation of lar averaging" will do when ap¬
the
outstanding
growth record plied regularly to the purchase of
on the eight National Funds are
MIT.
Two examples are givenwhich this company has estab¬
presented with the suggestion that lished since its initial offering to one starting July 15, 1929 and the
the investor consult his invest¬
investors on April 16, 1940.
Net other July 15, 1932, at practically
ment dealer for advice in con¬
the peak and at the very bottom
assets' increased last year from
structing an investment program
$25,873,416 to $45,976,656. An inr of the greatest bull and bear mar¬
designed to meet successfully his
In each case
teresting feature of this
com¬ ket In all history'.
individual requirements.
pany's growth record is that from $100 was applied to the purchase
a
total net asset value of only of MIT shares every three months.
Larger Steel Company Reserves
$285,142 on Dec. 31, 1940, assets And amazing though it may seem,
Using preliminary 1944 figures
have
increased in each quarter the results for both investments
on U. S. Steel Cprp. as an exam¬
without exception to the current on Jan. 15, 1945, were almost the
ple, Distributors Group points out
Average cost per share for
figure of approximately $50 bil¬ same.
in its current issue of Steel News
the investment which/commenced
lion.
"
•
that steel company reserves are
in
1929
was
$21.59 as against
increasing. The figures for U. S. Trust Investment
$20.33 for the investment which
Steel Corp. show that, since the
started
in
1932.
In both examples,
Selected Investments
Co. has
released an interesting memoran¬ the investor had a nice "profit"
after having received a very sub¬
dum on Selected American Shares
stantial rate
of income on his
in reference to their suitability
1944

The

ning an investment program are
described briefly.
Current data

report

FUND

Vice-President

Miller,

& Sayings

Trust

Chicago is quoted at
Incorporated 1928
may

your

220 Real Estate Trust

Building

•

the

Bank of

Phila. 7, Pa.

in common

its

ing

but

has

stocks

put 33H%
when invest¬

sole responsibility,
somewhat larger

held

percentages
when the stocks
were inherited. I strongly favor

purchase of common stocks
for diversification and income.

the

tails

Use
a

of common

somewhat

sponsibility
undertaken

eysfc

stocks en¬

greater

re¬

and should not be
by

unless it has a

institution

trained and ex¬

perienced investment personnel
spend the time

and is willing to

Prospectus

TLe

pour

Securities Series

map

be obtain eel

Keystone Corporation
of .Boston

50 Congress

iStreet, Boston 9, JVtass.

issue of Railroad

current

the

News,

surge

foreign orders on to the books of
American rail equipment manu¬
facturers is discussed by Distribu¬
tors Group.

Recent orders which

reported include 300
locomotives for Belgium, 150 loco¬
motives for
Czechoslovakia, 700
locomotives for France and 690
have

been

The

for

outlook

railroad

the

industry
is
briefly
summed up
by this sponsor as
"NEED
+ MONEY TO BUY =
equipment

PROFITS."
Post-War

ity.

And

National Securities &

Research Corporation

principal reason that all
recognize qual¬

ity,

120
LOS

BROADWAY, NEW YORK,

(5)

ANGELES, 634 S. Spring St.,

(14)

BOSTON, 10 Post Office Square (9)
CHICAGO.

Questionable
However, it is indeed question¬

able, at least, whether laws, rules

208 So. La Salle St.

(4)

regulations of State Legisla¬
or of State banking depart¬

and

tures

Stocks
growth in¬

Industrial
new

represented by 63 com¬

panies, are, included in the pres¬
ent portfolio of Industrial Stocks
Series.
Plastics, electronics, new
drugs and chemicals, new alloys,
air conditioning and refrigeration,
insulation, synthetic rubber, aero¬
dynamics, plywood, synthetic fi¬

photography

ed in the lisL '•/

Lord

are

<-/

includ¬

has

'dealers

of reduced

legal but it may or may not be of

The true debt bur¬
over-all
relation
to
actual

high quality.
in

debt

value.

Yet the law makes no pro¬

vision

for

consideration of the

overlapping debt.
Consequently
many bonds are legal investments
even though their actual debt bur¬
den is far too heavy, for the law

grade

faulted

valuation.

ample, there are plenty of second-

municipals

grade

that have

not

defaulted during the past 10 years.

there are many highmunicipals that have de¬
in such period.
It may
surprise many people to realize
that the
following communities
here in Ohio are reported, at least,
Moreover,

Greenville,

defaulted:

have

considers only

the other hand, some

Finally,

cially

Cleveland School
District, Fostoria, Fremont, Henry
County,
London,
Mt.
Vernon
School
District, Sandusky,
Urbana,
Wooster School District,

direct

Defiance,

East

Xenia School District. Yet scarce¬

would deny that these

any one

bonds

are

certainly of high qual¬

question

important

The

not, Has this community defaulted,
but rather, Will it default?

Probably it is a good rule, out
of
deference
to
diversification,
not to invest more than 10% of
capital and surplus in the bonds
will

rule

Yet such

subdivision.

of any one

assure

means

higher quality.
In the first

place,

bank can

legally buy 10% in the city, 10%

10%

actually

surplus

which apply only to in¬
municipal, securities,
we
have seen the portfolios of
many State banks that are clut¬
tered with second-grade munici¬
pals.
If the banker is too much
interested in income and too little
interested in

municipals are "good," or if
he actually doesn't know a "good"

above

surplus in bonds of Milwau¬

Lake

City,

Omaha or

San Francisco than to have 5%

and

(Tenn.), 5% in Detroit
N. Y.

Knoxville

5% in Yonkers,

large

orders.

commission

sales between
the present

reduced

to the dealer and
the gross
commission is reduced to 3% with

gross
on

brief,

assure a

with 3%

to. the

but

are

not

laws

these

high-grade portfolio of

municipals in State banks, and
it

whether

debatable

not

they even tend to improve the

quality

such portfolios.

Value

of Prudence

to mention that
the sav¬
ings banks in New York State,
after long and careful considera¬
tion, recommend that the Legis¬
committee representing

lature

and

abolish

ex¬

therefor

substitute

only the
Such a
requirement of prudence in Ohio
requirement of prudence.
would be better than all

our

pres¬

ent

laws, if bankers are prudent
Experience would indi¬
cate that possibly they are not

investors.

prudent, perhaps not even on the
average.
Yet, certainly, experi¬
proves that it is impossible
legislate prudence, in any field,
not merely in the field of invest¬
ence

ments.

Possibly
tion,

a program

and

authorities,

dealer.

York

New

isting restrictions on investments

sales above $100,000

restrictions

yet lacking in quality.

example,

Salt

second-grade bonds
quite legal under all of

are

the

It is appropriate

in Los Angeles
County alone there are more than
enough subdivisions to allow a
bank legally to have 100% of its
capital and surplus in the one
metropolitan area. In the second
place, it would be far better for a
bank to have 50% of its capital
kee,

weak one, he
untold

amounts- of

that

quite

bought up to 10% for each.

and

from

municipal

will find that he can buy

likely there would be suburban
subdivisions that could also be

For

security, if he thinks

all

one

Moreover,

community.

the

all

law considers.

vestments in

legally have 30% of its capital
and

which

debt,

Despite all the restrictions listed

county, and thus

the

actual debt bur¬

above,

and

subdivision

political

for

is too heavy, espe- *
it represents only the

present

in the school district if it be a sep¬
arate

that

of 10%

den

County, Bowling Green,

Madison

present law is
the further

the

impracticable
reason

by
of

the
the

of educa¬
banking
bankers, 't¬

Literature

present

issue

Keystone Investor: revised book¬
let "The Keystone

Plan."

Na¬

tional Securities & Research Corp.
—Revised portfolio folders on

Long

folio

Na¬

Preferred Stock Series and

tional

Hugh

Co.—February
Manhattan

port¬
Bond

Industrial Stocks Series

folder

Fund

Things
Lord,
folders

Selected "Investments

Co.—Current

issue

"These

Seemed Important." . . .
Abbett—Revised portfolio
Union Bond Fund "C"

Fund
Distributors Group—Recent

and Union Preferred Stock
.

announced

a new

Fund

Corp.—Current

Keystone

laws

governing State
Certainly we

bank investments.

have noticed that some bankers
are

quite amenable to informal

suggestions (not formal criti¬
that the quality of their

cism)

portfolios be improved.

Finally, it seems quite pertinent
why State banks should be

to ask

restricted

than

are

investments

national banks.

Has the

history of State banks been less
favorable

than

that

national

banks?

Suggestions for further change
the
present laws governing
State banks in Ohio might well be
in

Selling Commissions

Abbett

affiliated

valuation

the direct debt. On
communities
that actually have a light debt
burden, on the basis of actual val¬
ue of property, but wherein prop¬
erty is assessed at a small per¬
centage of actual value, are not
legal investments because the law
allows only 10% of the assessed

improve the quality of
portfolio. The regulations
cited above are especially ques¬
tionable on this point.
For ex¬
can

bank's

Mutual

the

for

Twelve

Reduced

net direct

than 10% of
would be

of slightly less

assessed

net

Restrictions Is

Value

concerned.

are

A subdivision with a

debt

den must be based upon

the absence of it.

years,

itself, have any bearing on its
quality as a credit risk, at least
so
far as its general' obligation

actually cheaper than it ever has,
the

itself, has little or no bearing
on the quality of its bonds.
Nor
does the size of a subdivision, in

its

too few investors

subdivision

existence

bonds

for

not

been

would be far better than all our

post-war
world
border
on
the fantastic,
writes National Securities & Re¬

bres and

should seriously

no one

has

object to such a program today,
for quality is selling cheaper now
than it has for many years, if not

Opportunities

Predictions

dustries,

elsewhere,

especially important today
that investments be of high qual¬

$25,000 and $100,000,

for Russia.

Series.

NATIONAL

local investment dealer ot

randum

Prospectuses upon request

from

Boom

search Corp., in a current memo¬

Custodian

'■¥

Railroad Equipment

Equipment

length.

years," writes Mr.

some

Miller, "our bank has

be obtained
investment dealer
or from the distributor.

Prospectus

through

"For

•

Donald C.

investment.

trust

Harris

INVESTMENT FUND

A MUTUAL

columns

funds.

for

WELLINGTON

these
seems

ity.

When to Buy

Investors Mutual

dis¬

can

have

and

Whether

fiduci¬

and

that

Certainly, as we
maintained
repeatedly in

Commonwealth Does It

„

discussed and the unusual
merits of mutual funds in plan¬

not

posed of lightly.

ments
How

new york 5, n. y

♦

this article.

working capital has asked
"How can a $2 million fund like
been increased 28% and special
no
rail or utility common stocks.
Commonwealth maintain a man¬
reserves now totaling $195 million
With the same $23,000 invested in
have been increased 405%?.
Dur¬ agement staff?" The answer turns
six
of
the Keystone
Funds, a
out to be quite simple.
The man¬
ing this period of rapidly increas¬
fully-rounded
investment
pro¬
staff which has done
ing reserves, steel company earn¬ agement
gram can
be obtained and the
such an outstanding job for Com¬
ings have also showed a net gain
diversification
instead of being
—$2.21 per share average for 21 monwealth is North American In¬
limited to only 30 issues would
leading steel companies in 1939, vestment Corp. and has over $5
include 155 bonds, 50 preferred
million of its own assets which it
as compared with $3.20 per share
stocks and 80 common stocks.
also
manages.
Thus, the funds
last year.
managed total over $7 million and
"Yet despite greatly increased
investment Program for 1945
provide an adequate base for a
reserves
and higher earnings
National
Securities
and
Re¬
competent staff, as demonstrated
after taxes, the stocks of these
search Corp., in a new four-page
by the performance record of both
21 leading steel companies are
folder, discusses "Planning an In¬
funds.
selling loweF* today than they
vestment Program in 1945."
The
are

one

widespread

We suggest you write
to Hugh W. Long & Co., 48 Wall
Street, New York, for a copy of

DISTRIBUTORS

factors behind the

trustees

aries is

York

New

publicity.

of each would require a

quate to some investors, it doesn't
provide a fully-rounded invest¬
ment program because it includes
no bonds or preferred stocks and

has reprinted an
article by Dr. Edwin Walter Kemmerer
discussing "The American
vital

companies,

Stocks and Manhattan Bond Fund.

10-share holding
total in¬
vestment of $23,001.20. While such
diversification might seem ade¬
current prices

Co.,

throw light on this

move

vestment

Inc.

W, Long

Hugh

Manhattan

and shows that at

Average

nance

A Class of

the investor diversifi¬
96 different bonds

current

sor

among

Keystone Corp., in the

come.

and

and stocks.
<

to this country in the years

Plan."

Steel Shares

might

Comments

(Continued from page 838)

perhaps realize

what their implementation

Dollar

wide
For example, states Lord, Abbett,
an investment in American Busi¬
ness
Shares, while like a single
issue
in
terms
of convenience,
and

single

of their total invest¬

just a small percentage

issue and allocate to it
ment

often

Ohio Municipal

the significance of the agreements
reached
at Bretton
Woods and

mean

points out in Abstracts that investors are
treat an investment in mutual fund shares as a

Abbett

Lord,

Woods

Bretton

Diversification
leading

necessary

money

creditable job. ..."

Few Americans

investment company sponsors, Lord, Abbett and
Keystone Corp. stress the importance of diversification in their cur¬
Two

Thursday, February 22, 1945

COMMERCIAL & FINANCIAL CHRONICLE

schedule

selling commissions

issue of Steel .News and Railroad
News (2)
,
.
Hare's, Ltd.'—New
folder, "Have
the Earnings of
New York City's Great Banks Be-

come

Depression-Proof?"

sent
to
the
Superintendent of
Banks/State Office Building, Co¬
lumbus, Ohio, or, by members, to

the Ohio Bankers Association, 33
North

High Street, Columbus, O.

Volume 161

Number 4362

THE COMMERCIAL & FINANCIAL CHRONICLE

Hearings On the Boren
Bill Concluded
(Continued from page 827)
Mr. Purcell Federal regulatory control over
observed that SEC is not inter¬ State and
municipal finance, di¬
ested
in the
securities, but in rectly or indirectly. The clear in¬
open-market trading therein.
tent of Congress has been
ex¬
Since it had been contended by
pressed on that issue in the 1933
Mr. Weigold and other witnesses
Act, the 1934 Act, the 1938 Act,
that the opportunities for fraud
and the 1938 Act.
But the Com¬
in the municipal and State securi¬
mission,
having
assumed
the
ties business are negligible, Mr.
power
in their proposed
rule,
Purcell
cited to
the
committee
X-15C1-10, to regulate transac¬

municipal securities.

two such instances of fraud

leged fraud.

One of these

al¬

the

was

of the Central Securities Cor¬

case

poration tried in 1942 before the
TJ. S. District Court in the North¬

District

ern

Secondly,
tioned

Mr.

that

criminal

such

pending

now

Committee

Mr.

men¬

two

are

members

whether there

Purcell

"It

the

told

that

committee

independent: agency, a
creature of Congress, and not a
branch of the executive depart¬
differ

said

from

those

departments,

functions

SEC's

executive

and that

should

remain distinctive.

As to SEC's constitutional pow¬
of

the

mittee

Appeals, Charles
vs.
SEC, handed

the

that he

constitutionality

regards this

and

extra¬

Mr. Purcell rejected

allegations

even

derstand
now,

dealers,

marketability of municipals.U:
Congressman John W. Murphy

(Dem.,

Pa.)

questioned

Section

the

Boren

whether
bill

does

beyond State and munici¬

pal securities, and affect all cor¬
porate securities,

hamper the
respect

Mr.

but
bill

his

stressed Vthat

Boren

will

not

of the SEC in
private
securities.

powers

Moreover,

Mr. Boren expressed
willingness that his bill be specifi¬
cally limited, so as to take care of
the point Representative Murphy
raised.

Earlier, during the testimony of
O'Keefe of Columbus, Ohio,

Tom

spokesman for that State's teach¬
ers' retirement system, Congress¬
man
Alfred
Bulwinkle
(Dem.,
N. C.) cited the late Samuel Insull
a. reason

why there should be

protection of investors in munici¬
pals.
...
'< .H
!
At the1 close of the hearing
Congressman
Boren
expressed
himself

satisfied with the pre¬
"The
hearings
now

sentation.

completed before the full Inter¬
and < Foreign
Commerce

state

Committee
Boren

HR 693," Congress¬

stated,

and

completely

facts

essential

"have clearly
presented ; the

intelligent
understanding and correct deter¬
mination
the

mony,

of the issue at stake

bill.

lized

The

the

testimony crystal¬

issues.

their

testi¬

the SEC claims the power

.to regulate transactions in munici¬

pal

securities,

although

limiting

dheir intentions to the open mar¬
ket.
But with or without limita¬
tion.

un¬

can

that

regulate

and

control

the

means

by which the States and munici¬

palities

other

and

divisions

finance

political
their

operations."
Congressman Alfred

winkle

formed

"Chronicle"

North

tive:

"The

tion

purports

bill

curities

Acts

opinion

Lee

Bul¬

Carolina

in¬

representa¬

under

sub¬

govern¬

considera¬

amend

the

that claim

that moti¬

vated, by introduction of the bill.

native
n e

further.

goes

The

the

University

Missouri.

"The

took

duty

marked

the

opposite
view.
SEC," he re¬

"Chronicle"

re¬

the securities business

the

are

equivalent of

a high code of ethics
industry and for establish¬

protect

good business practices to
the- investor, the issuer

the

dealer and

proposed

SEC

broker.

The

rule went beyond

this."

Congressman
Tenn.) brought
bill

Syria,
as

as¬

Parliament

direc-

tor

This
Benton

the

American Bu-

Lee

Quebec

Relations

Paris, France.

of the Harris Trust
Savings Bank in Chicago. In
1929 he
established the invest¬

department
and

M. Lee and

ment firm of Benton

Company, which he managed un¬

the staff of the Val¬

til he joined

ley Bank in

1^942.

present capacity

In his

Vice-

invest¬
ments, Mr. Lee is filling in for his
brother, Lt.-Commander Eugene
S.
Lee, now on duty with the
United
States Navy.
Lt. Com¬
President

charge

mander Lee is on leave of absence
from this

position at the bank.

Lee

Mr.

elected

recently

Was

Club

Newcomers

Phoenix.

Priest

(Dem.,

the matter of a
Congressman ■% Carlson of
up

lll.-Wisc. Savs, Uan

Loan

Only $7.05 out of every $100 the
invested in Illinois

Government

building

savings,

and loan associations in the

when

Bloc<£

the

definitely repudi¬

was

purely

provincial party, the
Nationale, and the Liberals,
receiving a major¬
ity of the over-all vote. More¬
over, it is not in the best interests
Union

Quebec

form

French-

Canadian

minority bloc against
the rest of the country. The prov¬
ince will be best served if its rep¬
resentatives constitute a majority

1930's

centive of

promoters

and

it is

:■

,■

felt that
the worst that can happen from
the point of view of the bond¬
holder is the adoption of the plan
currently discussed, which would
result in the offer of a long-term
3V2%
bond
and
settlement
of
now

about one-third of the

interest.

After

arrears

It is

eligibity for the plums

also

inferred that the up¬

the C.CC. F.
lighted by the Ontario
of

surge

katchewan

elections

CANADIAN BONDS

high¬

and

Sas¬

still

GOVERNMENT

Subsequent provincial
results, however, provide some
evidence to the contrary and re¬
cent Gallup poll figures indicate
a definite decline in the
popular¬
ity of this socialistic group. As
far as the chances of the Progres¬
sive Conservatives
now

most

are

can

MUNICIPAL

CORPORATION

concerned,

generally conceded that
that

can

attained

the position of the official
tion party.
It

PROVINCIAL

still

opposi¬

CANADIAN STOCKS

logically

de¬

duced, therefore, that the Lib¬
erals

will

retain

sufficient

number

ments, A. R. Gardner, President of
Federal Home Loan Bank of

which added to those which they

seats

Quebec,

A. E. AMES & CO.

admittedly should obtain in the

Chicago reported

INCORPORATED

program

TWO WALL STREET

rector 2-7231

N. Y.

ny-m045

CANADIAN

|STOCKSI

Offers to Purchase

Sam

Uncle

1st

ValleyRB,
Mtge. 5% Bonds

The

Machine

Tool and

Equip¬
ment
Corp.j headed v-by Adolf
Friedeberg as President, and hav¬
ing offices at 500 Fifth Avenue,
New York 18, N. Y., has made an
offer to purchase all the $2,318,000
outstanding Yosemite Valley Rail¬
road Co. first mortgage 5% 30-'
year gold bonds or certificates of
deposit therefor, on the basis of

ahead

from

schedule

repayments
and

from

the

regularly scheduled retirement of
funds."
These

fected

;

January
28%

Government

investments

sociations 'had in
of

1944,

use

Bonds

certificates of deposit

should be tendered, together with
letter of transmittal (plus 55 cents
transfer tax on each bond) to the
Bank

America

National

With

;- a

the past week, the strong trend as

expected persisted to such
that new high levels

ef¬

gree

established in

the

as¬

at the close

Bought—Sold—Quoted

'L'i'ff

regard to the market for

the

Mr. Gardner said.

DEALERS

country.

payments

reduction

de¬

were

nearly all sections.
High grades," and Nationals in
particular, were in general de¬
mand, but supply was again lim¬

CHARLES KING & CO.
>

Members

Toronto. Stock Exchange

61 Broadway, New York 6, N. Y.
.

WHitehall 4-8980

ited. Albertas also received strong

Province of

$280 per $1,000 bond. This offer
will expire on March 23, 1945.

ALBERTA
(all issues)

Taylor, Deale

Company

64 WALL STREET, NEW

YORK 5

WHitehall 3-1874

•

Trust

It is that issue that Congress must

and Savings Association, depos¬
itary, Los Angeles 54, Calif.
"I believe," Congressman Boren
The Yosemite Railroad has in¬
continued, "the Congress has in, stituted abandonment proceedings
all
its legislation
affecting the before the Interstate Commerce
regulation of securities clearly Commission
on
the
California

determine.
?

understood

the

grave

dangers of,1 Railroad Commission.

■H

NEW YORK 5,

Yosemite

of office.

remains after the January repay¬

the

—'

—

support,

group within the party in power,
with the not inconsiderable in¬

the

Wisconsin

certainly not borne out by the comparatively recent

election

on Feb. 7.
The
other provinces, will give the
of these investments de¬
Liberal Government an over-all
who, with tax exemption in mind,
signed to expedite recovery in
majority.
have got
municipalities to buy
community home financing insti¬
That the Mackenzie King ad¬
certain public utilities out of the
tutions involved a high of $32,ministration will make every ef¬
proceeds of special bonds pur¬
709,000, he explained, and only fort to
chased by the promoters. This is
keep Quebec in the Liberal
$2,307,400 is now in use. The ad¬
the bill HR 2014, which has been
camp is clearly demonstrated by
vices add:■
•
recent speeches
referred to the Ways and Means
by the Ontario
^"January and July, the months Liberal leader, Mitchell Hepburn,
Committee.
following dividend in which he stressed the impor¬
As the matter stands, the SEC immediately
still maintains that the issuance of periods,, are the normal periods tance of a greater understanding
for
returning portions of these of
a rule governing
secondary trad¬
French-speaking
Canada,
a
funds to the Government.
Since
ing in the securities, of State and
greater equalization of the stand¬
1941,
a
rapid
step-up
of
repay-, ards of-education
and
municipal governments is fully
housing
ments has resulted from the flow
within its province.
throughout the Dominion, and an
of private savings and investments end
to the intolerance and bigotry
into savings and loan shares.
This which has done much to divide
past month $907,200 went back to Quebec
from- the rest of the

Kansas aimed at certain

provincial nationalistic bloc.

with the latter

it is

Ass'ns Repay
and

WILLIAMS

are

progress.

President of the Business and Pro¬
fessional

BRUCE
here

ated and the vote divided between
the

Returning to the United States,
Lee was associated with the bond

was

Populaire

Economic

reau

observers

currently forecasting a political
stalemate as a result of the forthcoming Federal
election, based
principally on the supposition that the hitherto solid Liberal strong¬
hold of Quebec will desert the Government ranks and return to

"is to provide such rules

porter,

and

By
Political

later

and

System Teletype NY 1-920

Canadian Securities

University

Congressman Hinshaw of Cali¬
fornia

Bell

Street, New York 5

and

graduate

14 Wall

i 11 e,

Missouri,

Se¬

by exempting State
and municipal securities.
In my

ment of

man

lawyer

Congress does not
nor has ever intended, nor
permit Federal bureaus to

the

Harvard

for the

markets,

P i

sistant

damaging effects of the SEC's
August, 1942, "proposed rule" on
securities

Incorporated

Lee

will act to clarify the Act so that

and regulation for the conduct of

matter.

neous

not

divest the SEC of all authority in
all cases of securities involving

point that his bill,
does not raise the

incidentally,
question

time

ample

fraud."

make

Mr.

served

Congressman Boren interrupted
to

had

Hughes & Co.
down Dec. 10,

Court

1943.

has

Wood, Gundy & Co.

an¬

nounced.

study and digest the testimony it

Boren
amendment,
if
adopted,
might and in all probability would

Circuit

Second

of 'the

bank,

Beirut,

com¬

Quoted

—

Bimson, Pres¬
ident

bureau.

I believe when the

Sold

—

American

Mr. Purcell cited the decision

ers,

Bought

President,
Walter

the

State

not

All Issues

department of the Valley National
Bank, has been elected a Vice-

municipal finances shall be sub¬
jected to control by any Federal

ment.

Congress

PHOENIX, ARIZ. — Benton M.
Lee, Manager, of the investment

taught

Dominion of Canada

Valley Bank V.-P.

mental

SEC is

Benton M. Lee Elected

and

Purcell

cases,

now

whether

will

such

many

re¬

committee.

and how
many there were, but the witness
Was unable to state exactly.
A point made by several wit¬
nesses Tuesday was that Congress
has not the power under the con¬
stitution to delegate to any execu¬
tive department the power to de¬
fine a fraud, a point which the
SEC seems willing to argue. Mr.
were

municipal securities,

asserted their claim to that power
in
their
testimony
before
the

decide

Purcell

there

cases

Kansas.
asked

Indiana.

tions

849

Ernst &Co.
120

Broadway, New York 5, N.Y.

231

LaSalle St., Chicago 4, 111.

canadian securities
Government

Provincial

Municipal

Corporate

THE COMMERCIAL

$50

How lobs Are Created
(Continued from page 826)
the radical wing of the New Deal¬

perhaps not

after the war,
may expect that their program
attaining full employment will
in

ers
we

for

power

/consist of the following
large volume

11 A

things:
of public

spending to replace a portion
of the spending now being made

for war purposes.

higher hourly wage rate so

that there

with

shorter work week

2. A

be no decrease

may

in the weekly wage.
3. Increased

minimum

wage

rate with higher Social Security and unemployment benefits.

;

for re¬
summarized by
•saying that it calls for a bold, dar¬
ing, even reckless experiment in
pump priming, deficit spending
and government make-work ex¬
pansion.
This is all implicit in
In

brief, their program

conversion can be

budget message to

the President's

and he reiterated it in
nation on Saturday
evening, Jan. 6.
At that time he
stated that it was the duty of the
Federal Government to see to it
that "the level of demand of the
Congress

his talk to the

purchasing power by private con¬
sumers, after the war, is suffici¬
ently high to replace government
.

wartime
demands."
He also
stated, "Our policy is, of course,
to rely
as much as possible on

crease

their own

panies who used the new
ucts, in one way or another,
company

prod¬
which

developed.

research, therefore,

Discovery and

bring forth new products,
of creating new jobs

that
one

way

permanent ones.
But jobs
created by research
take time. They cannot be created

and

over

night.
They call for long
planning and the expem

distance
diture
No
the
can

large

sum

money

quick and sudden increase in
number of jobs, after the war,
arise from this source.
But

new

jobs can be

created without
is

creating new products.
There
no
reason
why there cannot

expansion in the output of old
industries,
whose products are
still in demand.
There are still
an

thousands, yes millions, of people
who would like to have more and

nicer homes, new
automobiles, radios, refrigerators,
electrical applicances ad infini¬
tum.
The question we are faced
with here, therefore, is how and
under what conditions can we get
our old industries to expand their
better clothes,

output so as to make more
More Money

jobs.

day of those who

pot provide the jobs, the govern¬
ment would.
In other words, the

perity through government spend¬
ing is by maintaining high pur¬

promised full em¬

ployment, whatever that phrase
means, and come what may.

chasing

ft-

Created

situation

such

this,

promises of so broad a na¬
ture have been made, where there
is such a wide diversity of opin¬
ion as to how to secure the jobs
to
maintain full employment, I
where

thought it might be interesting
tonight to raise the question—
How is a job created? Obviously,
if we do not know how jobs are

position to
economic and political

created, we are in no

provide the

rise

environment which will encour¬

that

the

would

prices of houses up so that fewer
houses would be sold than other¬
wise and that instead of making
more

jobs in the construction in¬

in¬

likely to be the greatest drawback
to full employment.
Dangers of Deficit Spending
It
we

action

than

own

made up

rived

to¬

high

Give the people

practice, the end result of
this -attempt to insure full em¬
In

high
irrespective of

ployment by the creation of

purchasing power,
how the purchasing power is in¬
creased, is disastrous.
Its first
failure was shown up in the ex¬

power,

say,

$150 billion de¬

private expenditures

$10 billion from public ex¬
penditures and expect this ratio
to continue year after year.
You
start such a plan after the war
and either one or the other of the
and

of whether or not

government ex¬

penditures increase total jobs in
the long run depends upon one
single factor and one alone, viz.,
can the government by its expen¬
ditures create new jobs without
discouraging

the

expansion

jobs by private industry?
Obviously, there is no merit in a
new

government making an

expendi¬

which creates one

thousand

ture

jobs if such an expenditure dis¬
courages some form of private in¬
dustry so that the private industry
reduces its number of jobs by the
same amount.
In fact, there is a
more severe
test even than this

which are non-

economic, lead to increased costs
and increased prices which more
than absorb the increase in pur¬

closed shop,

course,

way we can
furnish the

the

50%

productive
industry.

whole

the

play at
imagine that
governed by
a politically omnipotent and eco¬
nomically
omniscient
planning
board, possessed of every moral
creating Utopia and
our industry can be

virtue.

have

capacity
It

also

all of yomknow, a large
percentage of the electric generat¬
ing capacity of the country, and
many
other kinds, of factories,
plants and equipment.
The dis¬
position of this plant and equip¬
ment will have a marked effect

ible

I have had
of the leaders in this move¬
of full employment through

it may seem,

yet

seen

problem.
There were recently, I
believe, two United States-ex-

appointed

Senators

such

Ope of the fair sex and
of the traditionally sterner
Both of these ex-Senators]

boards.
one

sex.

no doubt,
but do you not

are,

have

lieve that they were
these

people,]

estimable

think one would
little naive to be¬
appointed to

positions primarily because

of the qualifications which they
possessed for the jobs?
Recently, I had the opportunity
to see a book, published in Eng¬
land by the Oxford Institute of
Statistics but not yet in general
circulation in this country, en-"
titled, "The Economics of Full
Employment."
This book sets
forth in detail the views of John

Maynard Keynes and his disciples
believers in full employ¬

—the

ment

through government spend¬

of this
In it everything is solved through for¬
attempts to operate even a part mula. The only thing the individ¬
of
these plants
in competition ual will have to do is to follow :
with private companies, it will
a table prepared by some govern¬
private business expansion
the war.
If the government

upon

after

be idle to

expect the private com¬

panies to expand their operations.
government spending must Private industry cannot compete
meet, if it is to furnish us perma¬ with its government.
nent help in the unemployment
What of Private Enterprise?
problem. Not only must the gov¬
ernment's spending not discour¬
If the President really meant it
age private industry but it must
when he said in his speech at
lead to an expansion of jobs in
Soldiers
Field,
in. Chicago, on

spending was once more resumed,
But believe it or not, and incred¬

never

such boards and I notice that,
the appointees to such governing
boards as we now have in exist¬
ence
usually are made to solve
some
individual's unemployment
any

owns,

if we want it that
have the government
jobs.
High up in

ivory tower we can

some

industry, for instance,

aluminum

which takes away

management's
authority in its
own plant; and if the whole func¬
tioning of industry has to be un¬
der the close control and super¬
vision of a hostile bureaucracy.

that

was

brought about by forced

capital; if labor
enacted which compel

venture

are

...

perience

increases of wages

of,

from

housing expenditures will get larger, de¬
situation, less jobs would be made pending upon the type of legisla¬
and the housing situation would tion enacted.
Put those in power
deteriorate.
The law of supply who believe in government spend¬
and demand affects jobs just the ing and as time passes inevitably
same as it affects everything else,
a
larger and larger part of the
and you cannot increase the de¬ national income will be derived
mand for anything by over-pric-. from
government
expenditures
ing it, even if you try to obscure until, in the end, government ex¬
what you are doing by the spe¬ penditures
will
be the whole
cious reasoning that you are in¬
thing.
Should the government
creasing total purchasing power. embark upon a large scale houseNo new jobs can be created in this ing program after the war, sub¬
fashion.
sidized and partially paid for at
public expense, you should need
Government-Created Jobs
only one guess as to whether or
But some of you may asking, not this will stimulate private
cannot
the
government
create construction and make more jobs
new jobs to take up the slack in
in private industry;
employment after the war?
For
Here is a principle that should
a short period of time it can, ob¬
not be lost sight of in the years
viously, do so.
Time does not immediately ahead. The govern¬
permit me to discuss at all ade¬ ment desires private industry to
quately the limitations to govern¬
expand yet at the same time the
ment-created jobs.
But the heart
government, today, owns in the

plausible but the reasoning back
of it is specious and, in the larger
sense, quite untrue.
*

City of

Wilmington, Delaware.
Recently,
Dr.
Elmer Bolton,
Vice-President and Director of

just silly to imagine that
can
have a national income
is

tax burdens which elimi¬
motivation and under re¬

secure

laws

nate

strictions that make it difficult to

dustry or improving the

will be high, demand will
be large and jobs will be plenti¬
ful.
The
explanation
sounds

attempt

under

the

increase

of the NRA.
Here an private industry at the same time
made to increase i:he
government
is
doing its
for purchasing power and make new spending. If it does not, just as
jobs in a modest way by increas¬ soon as the spending is over, the
ing wages. At the outset, it would jobs created will be destroyed
When I speak of creating jobs,
appear that
if wages were in¬ and unemployment will be just
I do not mean the creation of
temporary jobs
such as those creased, particularly in the lower as large as it was before the gov¬
Which are provided by govern¬ brackets, inasmuch as most wages ernment started its spending in
ment appropriation for the raking are spent, that the total demand the first place.
This point should be empha¬
would increase and more goods
of leaves which, when the appro¬
would be sold.
In practice, how¬ sized again and again and again;
priation is spent, nothing of value
that government spending to cre¬
ever, if manufacturer's wages are
has been created and the men so
ate jobs will be only temporary
employed are again idle. I refer increased, say, by 10% or 15%,
relief unless while the govern¬
and there are no margins to ab¬
to -jobs
where men earn their
sorb such increases,
the manu¬ ment spending goes on an expan¬
Vages by creating products which
facturer has to increase the price
sion
in
private industry takes
can be sold, the creation of which
of his product by relatively the place at the same time, sufficient
products makes the value that
same amount.
Then, inasmuch as to absorb the jobs when the gov¬
pays the wages.
Such jobs, when
ernment stops its spending.
The
created/ are
self•:» perpetuating, most business is done on a perreason
that
our
pump
priming
looked at from the point of view j centage turnover, by the time a
10%
increase in manufacturer's ventures were such ghastly fail¬
of the whole nation.
costs reaches the retailer's shelves ures during the thirties was that
One obvious answer to the cre¬
and the purchaser comes in to no
such
expansion
in private
ation of new jobs is that they are
When the
buy the product, the retail price business took Mace.
created by research, that scien¬
will have been increased by an government spending declined, as
tists, when they make new dis¬
amount more than the manufac¬ it did in the latter part of 1937,
coveries, create new products and
turer's price, with the result that the volume of business immedi¬
that
this
process
creates new
the increase in total wages paid ately fell off and the amount of
jobs. This is, no doubt, the most is not sufficient to buy back as
unemployment increased. In fact,
dramatic way in which new jobs
large a total physical quantity of the business decline in 1938 was
are created and there is probably
goods as before the increase was the most severe and rapid in our
no city in the world in any better
given.
It must not be forgotten whole history and the decline did
position to see this process in that
an
increased
purchasing not stop until large government
the expansion of private
dustry and make it possible
it to provide the jobs.
age

that the fear of , an
national debt is

made

flatly

houses? On the other

it not obvious that the
costs of construction
result' from such an
increaseN would tend to put the

hand,

power

con¬

it possible

believe in pros¬

through

the

therefrom would make

purchasing

to sell more

plenty of money, in one way or
another,
and
then
purchasing

How Jobs Are

power

national income.

resulting

Purchasing Power

Here, the prevalent answer

working

industries, the increase
power

Does Not Increase

private
enterprise to provide
jobs," but the implication was
clear that if private enterprise did

nation has been

mainly, by the in¬

in the number of

duPont

struction
in

employees but by the increase in
the employees of the various com

the

right senses think for a moment
that if we increase the wages of
everyone

Thursday, February 22, 1945

& FINANCIAL CHRONICLE

Oct. 28, 1944, "I believe in free
enterprise—and always have.
I
believe in the profit system—and
always have.
I believe that pri¬
vate enterprise can give full em¬

ployment to our people," then he
should appoint men to office who
also believe it

and whose previous
not belie the state¬

utterances will

which

ments

they

make

when

seek approval of Congress.
we
want and confidently ex¬

they
If

pect
full
not

private industry to furnish
employment, then we must
it with the apologetic

suffer

tolerance which one

accords to an

relative who will soon be
dead anyhow.
Rather, we must
support private enterprise with an
energy of sincere affirmation and
belief.
And that support and af¬
firmation, may I say, should be
just as apparent after election as

aged

before.
The

business
those

in some
.circles that there are
the seats of the mighty

suspicion
in

who do not want

held

the private en¬

terprise system to function effi¬
ciently, may be unfair. But it can¬
not be denied that during the de¬

pression a number of anti-capital¬
ist ideas and policies have ob¬

strength, and unless
overcome, they are going to make
it very difficult indeed for our
private enterprise system to func¬
tion.
To enact legfslation that

tained great

You will hear much
book in the days ahead.
ing.

ment statistical agency

his

indicating/
is not :

activity.> It

specifically indicated in the study
what would be done with some;

did not de-;
government
planners wanted him to do, but
gathered the idea that the au¬
thors of the study would not think
it amiss, in cases such as this, if
an
official rolling pin would be:
applied to produce the necessary
goodness of behavior.
/ Governments
can,
no
doubt, ;
create jobs.
In Russia they cre¬
ate all the jobs.
Qualifications
for holding the top jobs, however,
those giving the
best pay and/
carrying with them the highest,
prestige, will be politically de¬
termined.
The rest of us will
have to work under their guid-"
ance and at jobs which they offer,
us, and at such remuneration as

"Weary Willie!' if he
sire to do what the

they see fit to pay.
lieve

that

when

I cannot be¬
American/

the

people see that the alternative to
our
present system, defective as
it is, is not some iaeal system that
will have no defects but rather
will be a system run politically

practically all economic
taken away, will
not overwhelmingly say that they
do not want to look to government
where

freedom will be

provide their jobs.

The price

paid for such security is too much.
It has too great a similarity to se¬
curity
in

enjoyed by an

individual

jail.

•..May I summarize now briefly
conditions that will cause an

the

expansion of jobs after
which

should enable us

the war,
to con¬

some
vert our industry back to peace¬
Experimental Station,
ment
time uses again without too much
told us at New York that "almost
chasing power.
;:
government spending tell me that prevents our private' enterprise trouble, and what the government
one-half of the gross sales of the
Perhaps in no place can this be the government should expect to system from functioning efficient¬ can do to help in this process. /
duPont
Company in 1942 con¬
continue
indefinitely to run a
sisted of products that did not better illustrated than in the real
ly, and then use as an excuse
Biisiness Ventures Create Jobs
deficit of approximately $10 billion
exist in 1928, or if they existed, estate field in which you are all
the fact that our private enter¬
a year in order to create demand
First let us remember that new
Everyone
were
not then manufactured in primarily interested.
prises are not, functioning effi¬
to compensate for what they call
large commercial quantities."
I admits that there is a dire need
ciently to justify an indefinite gov¬ jobs are created when an individ¬
for
more
and
better housing; over-saving and failure to rein¬ ernment expansion in business, is ual, be he rich or poor, a com¬
; do
not have the figures showing
vest.
Those of you who would
pany, be it large or small, decides
the number of employees of the While there may not be as much
hardly playing fair. / \
like to read up on this matter
to engage in some business ac¬
duPont Company between 1928 as one-third of our population
How can private industry be
would
do
well
to
get a copy of
tivity,
either a
new
business
and when the war began, but poorly housed, certainly there are
expected
to
function
efficiently
The
New
thousands of families living in
Republic for January 15,
activity or by increasing the scope
there is no doubt they increased.
and meet the problems of recon¬
houses which, by any decent stan¬ where a series of articles begins
of its present activity.
The esFurthermore, the increase in jobs
on
"How
to. Insure
Prosperity struction if it has to" do it in the
made by the discoveries of that dard, must be classified as sub-

the duPont

company are

not measured

solely,

Etandard.

Does

anyone

in his After the War."

The statement is face

of public

antagonism and sence of

such a decision is that

.Volume 161

.the business
of

some

ing

risk.
in

man.

his

He embarks

the

decides to risk

savings by embark¬
which

venture

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4362

final

entails

this venture

analysis

because

the< government take sides in
this conflict for the; closed shopi

credit in

Government is supposed to rep-

business

resent all the people.

;

tained

adequate to

made

leave him

the

ministrative

and

costs

this

boards

after

the

war

ad¬

are

and

re¬
are

part of our permanent
government
structure,
should
be subject to court review.';;The
practice which has grown up

fair profit for taking
I am not ashamed of

risk.

.using

his

cover

The rulings of such

(4)

hopes to sell his products to cus¬
at a price which will be

tomers

word "profit" for, in
the ultimate analysis, it is the N/
during1/ the war of delegated
.profit motive that; has - always :
legislative, in fact sometimes
been the mainspring of the Amer¬
executive and judicial powers
ican business system and it will
as well, to these administrative
continue
to
be • the
/ agencies, must be discontinued
motivating
;force of this system so long as we
forthwith.
continue the American Way of
(5) The unproved theory that
Life.
permanent prosperity can be
Today, there is no doubt that
provided by government deficit:
there is plenty of capital owned
spending should be abandoned.
by both big and small business,
Such government spending as
.which, if the owners want to risk
is done during periods of unit, is sufficient to start a good
employment should be frankly
-many new businesses or expand /: for the purpose of
providing re¬
.

■

existing

want

owners

ones. ' If we
of this capital
to work in productive

the

put

lief

enterprise,
so that more jobs will be
created,
then we must give them a fair
chance

make

profit and their activities must
jnot be unreasonably or unwisely
.regulated, curbed or even op¬
posed.
It is necessary that there
•must be a feeling of confidence
.on the part of the business men
•before
such an expansion will
take place.

done

it is

These

ment

sense

days

that every law passed by
government be
scrutinized
•carefully to see what effect it is

likely to have on the development
sion

industries
old?

the

that

if ; private enterprise
provide jobs, government

must.

Favorable Reconversion Factors
There

good

for

reason

if /private industry be
fair chance that it cannot

thinking
given
over

short

period of time re¬
peacetime production
provide the requisite number
jobs to insure a satisfactory
a

convert

and
of

appear to' be: fearful about re¬
conversion.
They predict plant

insist

new

to make

environment

state of prosperity and adequate
employment.
Too many writers

-the

social

frequently heard these

cannot

common

be taken

and

measures

principal ones.
Moreover,
they are the answer to the state¬

reconversion, dbbs

seem

not all the

are

of the

Industries

To; Kelp in

investors from ' losing

favorable to the expansion of pri¬
vate business"-but they are some

Laws Should Encourage New

it not

While the SEC has

zealous in its activities

that need to

that there is hardly a large
company in the country that has
not already plans made and blue
prints drawn up for reconversion.
All they are waiting for is the
•government to give the sign to go.

over

political

to say

pros-

money.

It would be little exaggeration

•

create

some

to: keep

Committee for Eco¬

Development.

will

good work in this
field, there is good ground for
thinking at the present that

in our whole history has
industry done so much forward
planning as it is doing today un¬
der the leadership of Mr. Hoff¬
and the

and
.

liberalized.

Never

man

antagonist atti¬
tude of mind, on the part of our
political leaders will hamper re¬
conversion, destroy self-reliance
.and
undermine
confidence, and
iorever keep new businesses from
.being started. Certainly our busi¬
ness
men
are
showing courage.

nomic

itself

unemployed and
guise that such
a
downright good

the

perity.;
..
; r
(6). As an aid to secure ven//ture capital, the regulation of
new
security issues should be
/

A defeatist and

under

spending

reasonable

the

for

not

expan¬

Likewise,

closings,

widespread

unemploy¬
ment and general chaotic business
conditions.

There is

doubt that

conditions of this
encountered.

nature may be
One would be fool¬

ish not to expect some temporary

existing
disorganization; But I submit that
laws that have a retarding effect
it is not the proper mental atti¬
-in this regard should be modified
tude to dwell too much upon this
or repealed.
Time does not per¬
possibility, and by so doing cer¬
mit me to do more than enumer¬
tainly exaggerate its importance
ate
certain
specific
legislation and even
help to bring it about.
that ought to be passed if our
Let me enumerate some of the
government wants to establish an favorable
factors that exist at the
environment
which
will
help
present moment which ought to
business reconvert to peace, ex¬
help us in reconversion:
pand - and
provide
more
jobs.
(1) Incomes throughout the na¬
Among such measures, however, tion
during the last four years
business
men
generally
would have
been high and money sav¬
place the following:
ings today stand at a record peak.
(1) The Federal Tax struc- Both money in circulation and
ture, '/as a whole, should be bank deposits,pavings as well as
/
thoroughly overhauled, simpli- commercial, have had a
phenome¬
"

fied and stabilized.

The Excess

Profits Tax should be abolished

after

the

Gains

Tax

The

war.

should

Capital

repealed

forthwith.-'

;

reducing the
eliminating a double tax on
corporation dividends should be

•

The

possibility of
high surtax and

examined.
whole

And

tax

basic

thinking,

our

once

and

;

for all there should be

donment of the pernicious idea
that taxation should be used as

aban-

instrument of social reform

well

means

raising

;'////.'• v/// /////

revenue,

(2)
•

The

National

Labor

Re-

lations Act should be amended

•

prescribe equal treat-

ment

for

labor.

and

management
The

Lewises

well

Averys, Petrillos

should

treated

•

exactly the

same.

(3) Regulatory policies tend¬
ing to force the closed shop on
business should be abolished. It
is not the proper function of

nal

There probably has
been more savihgs during the last
four years by/ the people
as
a
increase.

whole than there

was

in the two

decades previous to 1940.

In brief,

the people will have the
money to

buy the
over

in
/

goods"when the ;war is
and when our industries are

position tq turn them out.

(2) Both

our

plant capacity and
ability to produce basic raw

materials

our

have) been greatly

(4) We have the capital and the

thejmanufacturing of
goods today
of| which we do not
have an
adequate supply. /,/'///:'

(5) There is a substantial pentdemand for goods of one kind

another that almost exceeds the

boundaries

naked

and

done

tion

rebuild

the

by this

war

colossal.
has been

What

raw

have

the best

skilled;labor force of any
nation in the world and it will be

world's

better
any

engineering

than

that

pos¬

other people in the

history^

called

know-how

1942

study

for

them

meet

the

step

all

the

MUNICIPAL BONDS

F. W.

shared

sources,

third

State-collected

CRAIGIE&CO.

ac¬

RICHMOND, VIRGINIA

and final

tax

Bell

System Teletype:

mu¬

RH 83

St 84

Telephone 3-9137

revenues

issued by the American Munic¬

ipal Association.
Motor-vehicle

the

the
taxes

and

fees,

usually
considered
together
highway user taxes, apply on

put

The first

CAROLINA

compared

municipally

cording to

hand to
and

oils and

the

kinds

other to the;

machines

drivers, certifications,
tions, etc.
The

States

sharing
with

use

and

examina¬

motor-vehicle

revenues

their

municipalities—per¬
of collections and fixed
appropriated. Motor fuel
generally are shared on a

centage

percentage of collection basis, but
both methods

are

used in the dis¬

tribution of vehicle license fees.

Municipal shares generally

are

effect

"The

this

the announcement

says,

action,",
"whic^

recommended to the

was

Com¬

mission by Raymond M. Greer,
the City's chief financial offi-

is to bring total debt retire¬

ment

in 1945 alone to $6,689,000, of which $3,822,000 will be
applied to the general debt and

$2,867,000
This

will

the

debt.

water

reduce

the

net

out¬

standing general and water debK
held by the public 14.2% in the
1945.

year

"In

addition

the

appropria-:

allocated for street, highway and

tion

bridge

provides for the retirement of $2,-

though in

same

construction
a

few

States

purposes,
commu¬

nities may use the funds for other

sound

consultants of New York.

cer,

two methods

amount

taxes

City by Wainwright, Ramsey
Lancaster, municipal financial

one

number of various fuels

different

thinking that
when they once comprehend what
are the problems of the peace
they
not

1942

from

revenues

is there for

way?

NORTH and SOUTH

their share of all State-

collected

Probably fundamental to my
optimistic point of view in the
long-term outlook is my basic be¬
lief in the long-term wisdom of
the Americari people.
The Jere¬
miahs, notwithstanding, have not
the people on the whole met the
problems of this war with out¬
standing patriotism, courage, en¬
ergy and resourcefulness?
What

will

VIRGINIA-WEST VIRGINIA

municipalities in all 48 States in

make-'finished

reason

States

with the total $230,000,000 paid

them together
products, cou¬
pled with cheap capital to finance
their production, and a market
with purchasing power ready and
willing to buy the goods.
to

nicipally-shared

with

men

the

$71,900,000 of soState
"highway
user"

revenues

combination

materials,

received

destructive.

better

Wisconsin and Louisi¬
for example, may use part

surplus, the

976,000

serial

general

and

1945

bonds,
school

budget

$2,688,000
bonds

and

purposes.

solution of any problem is an in¬

ana,

$288,000 water bonds.

telligent recognition of what the of their share of State motor fuel
"On Feb. 16, 1945, the net gen¬
problem is.
Our hopes for the taxes for schools; New York City eral and school debt
stood at $38,future rest in a large measure
may use part of its share for wel¬
001,500, a reduction of $4,420,952,
upon the willingness of thought¬
fare
purposes;
Ohio, Oklahoma
or 10.4%
since Jan. 1, 1944. This
ful groups such as you to face and
Pennsylvania cities may place
realistically the difficulties that part of their State gas tax reve¬ is a net debt ratio of 7.23% of
lie before us and then, irrespec¬
nues in their general funds.
1944 assessed valuations which to*
tive or
party or .anything else,
Motor Fuel Taxes include
work

toward

solution

the

problems. What will be called for
in the years ahead will be states¬
manship rather; than partisanship
in government; wise leadership in
industry and labor, and a willing¬
ness of government, industry and
labor to cooperate together to in¬
crease the total national produc¬
tion, on which we all must live.
The

substance

future

Whether

not

for

will

prosperous

hands.

own

our

•

use

it well,

only time will tell.

Finally, we must remember that
this responsibility of employment
is the responsibility of all of us.
First, for employers to conduct
their businesses with vision, enter¬
prise and honesty,
seeking
to
serve the people by making more
and better goods at lower prices,
realizing that in this way, in the
end, they will make the highest
profits. It is the responsibility of
labor not to try, through monop¬
olistic and restrictive policies, to
fix such a price for its services
as
to
price itself out, of jobs.
And perhaps most important of
all, our political leaders should
remember that it is not the func¬

tion of government to
over

business

provide

which

vestment

can

standard of
these

and

try to take

operate it but

environment under
can
flourish, in¬
go forward and the

business

gaso¬

line, oil, and similar levies, shared
generally by 14 States—Alabama,
North Carolina, Virginia, Illinois,
Indiana, Michigan, Ohio, Wiscon¬
sin, Arkansas, Nebraska, Okla¬
homa,
California,
Oregon
and
Washington; and shared with cer¬
tain
cities
performing
county
functions
by
five
States—New
York (New York City), Pennsyl¬
vania, Louisiana (New Orleans as
parish), Maryland (Baltimore)

and Colorado (Denver).

Examples

the

problem will take

of itself.

of net, by

of net
registration fees; Oklahoma, 5%
of total collection, allotted per
source

capita; Oregon, 5% of total col¬
lection

taken

when

Stanley Co. Formed

(Special to The Financial Chronicle)

WATERVILLE, MAINE—E. H.
Stanley & Co. has been formed to
engage

Officers

in the securities business.
are:
Erwin H. Stanley,

Helen

Leslie

Stanley,

addition to

Stanley

and

Stanley

are

directors.

Stanley

was

formerly

Smith, White
Waterville.

the

treas¬
officers

Bemice

Mr. Erwin
an

officer of

Stanley, Inc. of

exceeds

$11,000,000, by population.
Motor Vehicle Fees, shared gen¬

erally by 17 States—Connecticut,
Massachusetts, Vermont, Alabama,
South Carolina, Indiana, Michi¬
gan, Ohio, Wisconsin, Arkansas,
Kansas, North Dakota, Oklahoma,
Arizona, New Mexica, Utah and
California; and shared with cer¬
tain cities by five States—New
York,
Maryland,
Nebraska
(to
help retire bonds already issued),
Colorado and Montana (Butte re¬
ceives 50% of residents' fees).

"The

basis

an-

,// ///

extent

</;

what!

Jersey City has accomplished in,
strict cash

realized

ered

that

basis in

when

Jan.

1936
is

will

consid-/

1, 1936, gen-/

eral and school debt less

funds

sinking
$59,368,384, com¬

totaled

pared to the present $38,001,500
—down $21,366,884. On Jan.
1,

1936, outstanding water bonds!
less sinking funds stood at
$11,are

now

$5,302,000

—down $6,502,730.

"The 1945 budget will mean
a#

tax

average

bill

lower than

1944,

approximately

those sent out in

result, pf

estimated

decrease in the levy of about

$1,*;

243,000."

California Toll Authority
Definitive Bonds Available

|jj

For

Exchange

Revenue

due

}
) /

bonds

1944, sinking fund

dated

June

bonds

revenue

Sept. 1, 1962, and serial

reve¬

nue

bonds

from

Sept. 1, 1945, through Sept.

1, 1959,

are

form in

due

semi-annually

available in definitive

exchange for outstanding

temporary bonds.

alloca¬

tion: Connecticut, $3,000,000
>

full

debt retirement since it went

bonds

Examples of

may

The temporary

delivered

the

principal office of Guaranty Trust

nually from State highway fund,

Company of New York, for trans-i

shared

mission to San Francisco to be

among

communities

equally; Alabama, 30%

E. H.

taled„.$525,711,956.

804,730 and

of alloca¬

Alabama,
$125,000
by
population; Illinois, % of 3-cent
tax, by population; Wisconsin,

employment

care

of basis

tion:

living increase. Under

conditions

president;

with

Notes

ve¬

•.

nicipalities

in modern times

war

motor

indicated by the fact that they

destruc¬

will

and

Value of this sharing to mu¬

prosperity can be found than this:
Ample factory capacity, adequate

urer;

equipped
technique
sessed by

functions."

stands
The work to

taxes

by appropriating this sum to fill
hicle registration fees, collected all sinking funds to 100% of
prin¬
by all 48 States, are shared with cipal requirements, according to
their municipalities by 30 States, announcement made on.
behalf of
though in half a dozen instances
the revenues are shared only with
certain cities "performing county
Wire Bids on

literally

hungry.

caused

the

Thisf nation will

Gasoline

imagination. Not only does this
country stand ready at the mo¬
ment to buy large
numbers of
automobiles, refrigerators, wash¬
ing machines, vacuum cleaners,
furniture, farm machinery and
countless other products just as
soon as they can be made, but a
large part of the world outside of
our

851]

Municipal News

(3) We will/probably have the
greatest numbdf of skilled work¬
ers in our
histbry at the close of
war.

abundance to finance

expansion, and the cost
of borrowing it is at an all-time
low. High interest rates certainly
will not hamper reconversion.

ex¬

panded during f he war. There is
hardly a basic -commodity that is
needed

of city

collections, by number of regis¬

ex*

changed for definitive bonds.

trants; Ohio, 25% from licenses
issued to residents; California,

Michael I. Morran With

40% of balance after State debt
deduction, by population.

Paine, Webber Company
(Special.to The Financial Chronicle)

Jersey City to Retire
14.2% of Debt in 1945
The
Board

State
in

Local

Government

Trenton, N. J., has ap¬
proved a request by the Board of
Commissioners of Jersey City to
apply $3,713,100 of free cash sur¬
plus of the City to debt retirement

CHICAGO,
Morran
with

has

Paine,

ILL. —Michael
become

associated

Webber, Jackson

Curtis, 209 South La Salle Street.
Mr.
H. C.

Morran

was

formerly

with

Speer & Sons Co. and in the

past with Ballman & Main,

Thursday, February 22, 194?

THE COMMERCIAL & FINANCIAL CHRONICLE

852

time operate> and expand' workmen's compensation and un¬
private-business as well as payf employment compensation insur¬
the cost of current government ance, the former private and the
public. " Another method,
services.; This- problem—or per¬ latter
haps I should say this cluster of exemplified in our public aids for
the aged, the blind, etc., involves
problems — will present funda¬
mental questions which will re-: a tax supported plan. The origi¬
nal 1936 legislation called for both
quire the best thinking of which
methods of support but empha¬
American citizens are capable.
I
sized. the insurance plan. The re¬
shall outline a few elementary;
cent trend is toward support by
phases of the challenge and ex¬
general taxes.' This is well illus¬
press the hope that "you will con-•
trated in the overwhelming vote
sider this discussion merely an
in Congress six weeks ago against
introduction, in other words, that
permitting the automatic increase
you will give the issues outlined
in the old age and survivors' in-1
sustained consideration.
surance premium payments in the;
Perhaps the comments that folform
of
payroll contributions.low may be clearer if I sketch;
Again, the demand for national!
the emergence of the post-war fi¬
aid for education and especially
nancial problems.
Then we may for
public works is illustrative of
pass on to definite consideration the cost level of the national
gov¬
of long-term questions/
//;■■]';
ernment after the war.
same

Business and the Public Debt
(Continued from first page)
present

'maximum reached in the

period shall be $240 billion or
$340 billion. And yet the differ¬
ence between these figures is two

-war

and

the entire $40

times

half

caused
'so-much distress. • The Secretary
of the Treasury appears to have
billion which only recently

this
question—as indeed he ought to
given more consideration to

of his public
responsibility—than has any other
"national leader; but he is far from
do in the discharge

among the very people
who have become so distressed as

popular

debt exceeded
after World
War I.
The cause for concern is
.now
very
much greater than
.When the debt attained the $40
billion figure.
In fact, the addi¬
public

America's

attained

level

the

tion of $40 billion is- a much more

jump is
from $240 billion to $280 billion
than wheii it is from nothing at all
to a/mere $40 billion!
" \V
' ;

serious matter when the

question

The

how

arise as to

may

influence the size of

can

the national debt.; Without

trying

the possibilities, I
may point to a number of the most
significant
efforts
under way.
Some of these seek to keep the
debt down as a by-product of
suggest all

stabilizing prices and other ele¬
national economy.
(1) War. Production

the

ments

These include

certain sorts

Board restrictions on

production;, (2) the consump¬
rationing program; and
(3) the various direct price con¬
trol activities undertaken by sev¬
eral agencies of which the Office
of Price Administration and the
Board of Governors of the Fed'eral Reserve System are perhaps
-best known. Then there have been

small

debt"

large one.

The other

that

"a debt is

therefore

cannot be

contend

debaters
a

and

dismissed

lightly.

V It would

serve

useful pur¬

to enter the ranks on
either side of the argument. One;

for

pose

thing,. however, is agreed to by
all schools of thought; and I think

The debt

it is significant for us:
which

country owes to its own

with than

people is easier to deal
one
which it owes to

foreign
There is
an
economic sense in which the:
United States Government obliga-i
tions involve payment of interest;
and of principal to ourselves. That
is, • Americans - contribute
t ax!
money to the Treasury; and the
Treasury pays that same money to;
State

to its residents.

interest;

individual. Americans. as

of their loans.
is easier than to make sim¬
repayment

This

payments to other countries.

ilar

to sev-;
eraL factors, the most important
two of which I simply mention.:
(1) The payment of money to an-:
The greater ease is due

people

other nation or to its

may

easily get bogged down in the
technicalities of foreign exchange.

difficulty is due partly, but

This

differences in cur¬
(2) The only way a war
to* another country can be

not wholly, to
rencies./
debt

goods

is by sending more

settled

abroad than

imported, and the

are

foreign bond-holder country may

tion goods

clamp down on such imports by

efforts to keep the debt
down by (1)
increased taxation
and (2) reduced expenditures for

direct

governmental services.
Perhaps the unpalatable nature of
the remedies for undue increase
certain

raising tariffs or by other meth¬

example,r the

For

ods.

United

States in the 1920's made it impos¬

for

their

pay

countries

European

so-called war obliga¬
short, something must

tions. (3) In

always actually be sacrificed from
a nation's income if it is to pay a

That is not neces¬

foreign debt.

in order to

sary

own.

our

debt such

pay a

individual

householder gets in debt he is

fof-^al^ r worldb: ^dn^itions:

First

what

we may pro¬

One of my neighbors, for

extremely

example,

because

wrathful

permitted

not

make'unrestricted use of a small

metal item for production of a toy.
Then we have not been too en¬

number

the

about

thusiastic

points we must pay for butter or
even
about the, maintenance of
contact with our local rationing
respect of gasoline for
Some of us have

board

automobiles.

our

particularly receptive to
on the prices at which

not been

restrictions
we

Very few of
insisted

increases in our own
And yet these are the

tax,' bills.
of

kinds

wartime

alternatives to

debt greater than

total .public

production.
have vigorously

sell our own

may

is otherwise necessary,
i-

But

though

even

had

ac¬

cepted fully every means of curb¬

of our country's
have been by the
war
extraordinarily

the. growth

ing

debt, it would
the

end

heavy. We have not "gone whole
hog" in accepting the alternatives,
and sd our obligations are to be
even greater than they might have
be

will
be a

In any event the debt

been.
so

great

that

must

pf real concern to every
thinking adult in .the country.

source

United States in general must

burse interest only to
in another

capacity are taxpayers,
that is within the family.
What

still

children—and

later

for

our

In the years

just" after the Germans and the
Japanese are disposed of, what
are we

V
>

There

The
has

Debt Load
been

among

tech¬

nicians in debt policy a vigorous
debate'

whether

the

debt

•should be regarded as an unmixed

.evil.

One school contends that, as

the national debt
it is a matter of rela¬
tive indifference whether we have
we

really,

owe

to ourselves;

said

does

not

country's becoming

obligated to its oWn citizens is or
can
possibly be Ja matter of in¬
There

difference.

are

rea¬

many

why the nation's going into
debt is bad.
For example: (1)
sons

Paying
which

world

war

service

that there is

means

re¬

of purchasing power

distribution
unless the

debt

for

used

proportion of the total

payments of each person is
exactly the same as the proportion
tax

principal

of the total interest and

receives, and such
arrangement is a practical im¬
possibility; and (2) the process of
collecting taxes and disbursing in¬
terest is expensive both directly

payments

will

from

the

that

sense

suffer

given amount in
taxes more than enough to com¬
pensate for interest income even
though the amounts be the same.
Moreover, we all tend to think
we
have a right to the, interest;
paying

are

harder

Uncle Sam has
pay

that

convince

right to what we

in taxes.

Handling
The

Obligations

War

fundamental

problem

what to da about Federal liabili¬
ties after the

war

has two impor¬

tant and several secondary

aspects.

are

the

first

there

place,
of

how

the

nation. The

liquidation of the war¬
machinery,

administrative

time

civil

both

and

will

military,

the task be

the nature of

by
slow

Liquidation

process.

the

physical assets alone represents
the biggest business undertaking

the sale of

These issues,
although they are of major im¬
portance and require the very
best
are

Treasury administration,!
not, in the main, matters of,

general policy but matters' of fi¬
nancial

engineering.
The second
problem concerns the means by

which

the

nation

debt, service

charges

to meet the

and

worth of goods

the

than $100 billion

will be necessary;

though, if one eliminates non-sal¬
able stock such as ordnance, it is
doubtful whether the cost of the
amount to be sold will exceed

When

billion.

one

$50

considers that

this job alone involves an amount

which

of money
times

may

national

our

equal three
1939,

debt of

something of the size of the ad¬

problem

apparent.

Then, of course, the Government
will be called

force

to make and en¬

of the rules governing

some

private readjustment to peace¬
time production.
This will be a
large undertaking; and if business

costly

gets panicky, it will be a
one.

other

The

expensive

highly

problem the country will confront
the

concerns

the number of

to be cared for.

matter

nomic
our

been

the expense will depend

injured
on

of its

have

sailors who

and

diers

rehabilitation

In the instance of sol¬

manpower.

men

and

women

Then there is the

educational

for

rehabilitation,

Government has

and

eco¬

which

already, ac¬

to say that the country, without
tragic consequences, can undoubt¬
edly meet the challenge. On the
whole, I think the difficulty of
doing so will depend .on the ex¬
tent to which we maintain and

enlarge

that

shall not

unstable: for

Let

to come.

hope

drop from

see a

present income level of $150
billion to the 1933 figure of less
than $40 billion, but let Us at the
same
time avoid the assumption

our

present production and price

that

levels''.will

indef¬

continued

There is no engineering
reason, when our manpower is no
longer so largely occupied in mil¬
itary activity, why we may not
greatly expand present levels of
income production.
Or - we may
greatly contract our output. ;
;
initely.

previously indicated,
of a high level of
income depends funda-

(2)

maintenance
national

yielding. That is, we are
well over half of our
gross national product to federal
government use. In fact, the war
alone is taking over 50%.
After
are

now

devoting

the

governmental

the

also
war.

greater than before
the social

For example,

is going to be
enlarged, and it may be extremely
burdensome, financially speaking.
Already it costs a lot of money.
There are two general approaches
to financing social security. • One
of them is through social insur¬
ance, 'exemplified ' in this' coun¬
security

try

—

program

including ' Kentucky

•—

by i

and the immediate post¬

war

adjustments, the national ex¬

penditures, including $5 billion or
$6 billion for interest and princi¬
pal payments on the debt, have
been estimated at figures varying

billion to $30 billion. If
assumes that the actually nec¬

from $16
one

federal government cost
$20 billion to $22 billion

essary

will

run

personally think it should
$18 billion—then at
present levels of national income
we could pay the bill even if tax

—and I

not

exceed

rates

were

cut in half.

I mention

this

possibility to emphasize the
fundamental issue; I do not sug¬

that

gest

the

method

resemble

of- attack

reducing all tax

50%; nor do I think it is
likely that the present price or
productivity level is the one at
rates

shall

stabilize.

How¬

it is commonly agreed that
reduction and gradual bond

tax

(b)

tial;

governmental

recogni¬

•

tion that the self-reliance

already

commended is necessary; (c) gov¬
ernmental protection against mo¬

nopolistic

practices, whether
manufacturers or labor
farmers; (d) govern¬

among
unions

mental

maintenance

currency

stable

system, that is, of a dol¬

lar of constant

purchasing

power;

(e) governmental timing of public
construction
much

competition

materials:

and

needed and

for

labor
as

struction facilities

avoid

too

building
privately

•

the

use

which

con¬

not

are

needed

privately; and (f) govern¬
financial policies favor¬
able to industry and trade.
In
speaking of needed public policies
toward
the
economy,
I should
like to emphasize that the Gov¬
ernment
is not something sep¬
arate and part from you and me.
The Government is
simply the
implement by means of wnich all
of us get things done which all of
us as a group—though not neces¬
sarily each of us individually—
actually want done. In a demo¬
mental

all, consider the budg¬
etary problem.
The present tax
system is producing at an annual
rate of $50 billion. , Last year it
produced $40 billion.
Our na¬
tional
government is spending
about twice as much as the taxes

ever,

level

First of

which

the

conditioned

views.

Secondly,
not only will the
post-war period emerge gradually
for all these and other reasons,
but

degree
to
which we be¬
come
"soft" and
"get scared."
Let us look at the basis for these

lions of dollars.

service demanded of the Congress

productive capacity.

turn

the

should

;

our

That

In addition
the payment of pensions or other
"deferred compensation," "bonus."
or
what not may cost added bil¬
cepted responsibility.

debt, will

should be managed.

somewhat

continue

many years

sud¬

dawn

not

a direct military character. How
After the Postwar Adjustments
long they will last and how big ! Already;T have outlined reasons
they will be are distinctly uncer¬ for
thinking that the public debt
tain.
will be a serious load after the
But there are at least two other
country has adjusted to peace¬
considerations which assure taper¬ time conditions.
Lest I mislead
ing off, rather than quick termi¬ you by this statement, I hasten

and

ble that the national income- will

Tb mention only one other fac-' meritally

of justment

proceeds

the

taxes
are

technicalities

to do about it?

bfeen

has

that the

mean

Before many years it will doubt¬
less be a serious matter for our
children's children.

dis¬

people who

necessary,

guarantee that the post¬

a
position similar to the nation
explain which owes a debt abroad; the in the way of salesmanship ever
the
paradox to which I have obligation is to pay something to tackled in this or any other coun¬
alluded already.
We do not like parties outside the family.
The try.
It has been estimated that

restrictions

production
perhaps technically un¬
it now appears proba¬

are

on the temper' of- the
tor, a third element tending: to people. / If the public • becomes
prolong the war in a financial afraid of depression, as it did in
denly. In a purely military sense; sense; may well be the habit: of; the early • 1930's, we shall have
the war is likely to taper off ratheri
spending; public funds lavishly. depression.
If the pedple gener¬
than come to a sharp termination.; At the outset: I referred to the
ally take the attitude that it is
It is generally thought,, for ex¬ wartime tendency for the public the Government's
job instead of
ample, that the European phase of' to accept: a difference of several their own to make railroads; fac¬
the war will be over before the billions in the debt without seem1-' tories and farms' productive;'then
Pacific phase.- Then, even after ing concerned and especially the very likely we shall have depres¬
Japan is conquered, there is no disposition to reject unpleasant sion.- Despite the fact that a selfand
certainly that there will not be policies which would limit the reliant
independent ^spirit
sporadic uprisings.
There have national debt; Possibly the coun¬ among private individuals is of
been predictions that both Ger¬
try will abandon: this kind, of paramount importance in- main¬
"softness" when the; shooting, is taining
man
and Japanese Fascists may
and increasing ^ national,
"take to the hills" and continue to over, but there is little in Ameri¬
income, there is • n<rdoubt that- * '
resist.
In any event, military oc¬ can history which would lead one
(3) Governmental policies ^recupation of conquered areas seems to anticipate that cessation of the specting ithe': economy must be
certain.
All these prospects rep¬ fighting in the field will lead us wise. Among the most fundamen¬
to insist that
Congressmen de¬ tal issues are (a) governmental
resent for the American people
mand
business-like economy in
varying — but unquestionably
acceptance of the idea thatmaxi-,
™; v'
;
mum economic freedom is essen¬
large
continued financial loads public business. > — ^
to

seem

in the national debt may

duce/

levels

sible

fluctuations in general

payment is preferable to mainte¬
nance

coupled

wartime

with rapid

tax

debt

rates

retire¬

cratic

country the Government is
people of that country, pro¬

the

vided

be suffi¬

only that people

the

ciently advanced to enjoy
blessings of democracy.

Although the national atti¬

(4)

tudes and

policies already referred
to high na¬
tional income levels, probably the
to

are

most

fundamental

important condition of post¬
prosperity is the kind of

war

peace

the world secures. Our
will depend not only on

in¬

the
of this councountry but also on the position
and the policies of other coun¬
tries.
For example, if the United
States adopts a policy of raising
tariffs and otherwise interposing
come

international position

countries'

for-: other

difficulties

trade in this one, we

shall be ask¬

ing for the sort of retaliation we
sought and obtained after World
War

I; if we try to cut ourselves
off from contact with other parts
of

the

world,

might

well

ourselves beautiful

seek to make

by cutting off our own noses.
respect

another fundamental

In
our

ment.

after-war

prosperity depends di¬

push the discussion further
along the line of the kind of pro¬
ductive plan we are likely to at¬
tain and the kind of tax arrange¬
ment we can have and still pay

rectly

the

our

debt obligations, I suggest re¬

garding the former certain broad
generalizations which seem to be

justified in the light of present in¬
formation.

(1 )• Although - material

The

obtain.

kind of
size

and

peace

character

of,our military establishment and
the consequent
omy

drain

will depend

obtain

wise

tlement of the

tional strife.

the econ¬
whether we

unwise

causes
,. (

set¬

of interna¬
;

;This does not by any means ex¬
the story;' but enough has

haust

.'.Volume 161

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4362

been said to make my-main dou¬
ble-barreled point, namely,, that

less-

the manageability of our national

tional

.debt after the: War depends on our

regarding

concern'

billion

dollars

debt than

specting

$100

additional

na¬

expressed re¬
only five

Secret of
Is

prosperity; and that our ability to years ago. It appears'certain that
•have V'lifexand
have it more present comparative indifference;
..

abundantly" varies with

col¬

our

lective capacity to make wise de¬
cisions and,'in the international

sound

financing is sadly mis¬
:';r
:. i;

placed.
Both

the

late

1930's

and

to obtain wise decisions in now, the debt load of the national
other countries. With these hints
,gqyernment is a less serious mat-)
as to what .is involved I return to
ter thgn if a significant part of it,
the problem of raising the money were made
up of obligations to
necessary to meet war-debt serv¬ other countries or to their na¬
ice charges and to support the tionals.
As our debt stands, the
current requirements of govern¬
taxpayers of the country are m
area,

ment.

(Continued from page 827)

ity, with loss of purchasing
and also of

nally

such

erased

the most

power

public confidence.
moneys

have

Fi¬

been

reconsblidated and made

convertible

into gold in order to
confidence at home and

restore
abroad.

Money

Supply-and Low Interest

effect obligated to pay the Amer¬

Cheap Money
Excess Supply

billions

$40

Rates

"" I

■

ican

people who: own bonds a,
After the world wide financial
huge sum of money.
This pay¬ crisis and business
"depression be-i
ment will prove onerous because
ginning in 1929 low money rates
it" Will
redistribute
purchasing soon made their
appearance in all
power among various
economic money markets where there was
classes of our people and because an excess
supply of money seeking
of the direct expense and friction
ner as to interfere as little as may
borrowers who could give assur¬
be with private economic activity.' of making the transfer.
?
; ance of
safety or investments that
The post-war tax planners have
3. Not
only must
Americans were safe. -Yield was secondary.
talked at great length about what ;
plan for managing and meeting Borrowers who could qualify were

important, condi¬
tion of meeting our public obliga¬
tions is to keep our productivity
high, it follows that in raising the*
necessary money the task shouldr
be accomplished in such a man--

;

tax

considerations

influence;

national

debt

obligations

853

the

few in the

minds of

lenders

and

business adversely.
There seems * post-war period, ..but they must those few were over supplied with
.to be general, agreement, for ex-y plan for doing so, during a time
money. Investments that qualified
ample, that the corporation excess of readjustment from which the: in the minds of investors were not

positors.
This large supply of
has kept money rates low.
In England there was no reserve

money

ratio

gold required- by law to

ment of values to meet the new
prices for money, and the second
is

an-

inflation process Which will

bring rising prices and costs, and
a
lower buying power for each
unit of money, until the larger
supply of this cheaper money
Which
the

will

needs

required to meet
daily activities wiljl
demand
for
money

bring the
which- will increase the rates to
,

demand

and supply costs basis
limit the issue of paper money se¬
To go through the money
cured only by government debts. again.
But in the United States we had a revaluation process and wait for
the cheaper units of money to be

specific requirement of 40% gold
against
Federal
Reserve
notes

absorbed

by the increased prices

of goods and services will/be a
Because of this spe¬
cific requirement it is going to be' very,, long, period of. maladjust¬
necessary to reduce the reserve ments, blackmarkets and inequal7
requirements in gold in order to ities.; There is a stratification in
costs, prices, and incomes which
make room for the further in¬

outstanding.

crease

the

supply of

change slowly, and unevenly. Any
change in one group is
halted by the slow changq at that
time in another group.
A uniform

currency

rapid

Federal Reserve notes and the in¬

creasing bank deposits.
Accord¬
ing to press releases Congress is
be

asked

ratio to

reserve

gold

against

and

demand

reduce
a

the

increase

legal

comes

flat 25% ratio of

both

Reserve

the

notes

costs,

prices

ini

and

is not possible with allof
of individual < com¬

millions

mittments

and

contracts

af fixed

deposit.' This will
For this reason
make room for a large increase in prices and dates.
both notes and deposits' with the the inflation /evaluation process
■profits tax and the nuisance cor-] peacetime economy will gradu-; numerous, and the gilt edge in-i present gold holdings and the will cover a long period of time.
This long period of readjustment
.poratibn taxes should be repealedi ally,
rather
than
suddenly, vestments were purchased with present price of gold. : : :
v
joutright.In principle even the: emerge.; It is probable the out-i their low yields, at rising prices
will create or be accompanied by
As soon as this report of a pro¬
.Treasury .appears to accept this standing credit obligations may driving the yields still lower. The
many hardships as well as specu¬
posed reduction in the reserve
lative opportunities like all such
policy.
The reason; is that al¬ even continue to grow for some¬ supply of money and money re¬
ratio was made, high grade
money
though the excess profits tax is time after the "organized resis¬ serves was large and the demand:
disturbances.
When this process
rates and bond yields
began to is far
all right 4n wartime it restricts tance" of the enemy has ceased. for
enough advanced, however,
money small. Rates for money decline.
This
larger supply of to absorb the excess
economic freedom too much- to The -financial strain may be in¬ declined
supply or
just as the prices of any cash will drive
money rates still
creased during the period of slow other
cheap money, money rates will
) justify using it in peacetime.
tool, service, or commodity lower and the
prices of fixed in¬ rise
There
is
also
readjustment—and
would
decline
again
perhaps
after¬
according
to
the der
when
there
was
fairly general
terest bearing securities still high¬
mand and the willingness of bor¬
agreement that some of our spe¬ ward—by (a) the normal increase more of it for sale than buyers er.
Money
is to remain a "drug" rowers tov
cific sales taxes
should
pay higher
be re¬ in civilian requirements for gov¬ wanted.
The departure from the
r^ites ^be¬
on the market as it has been for a
cause of profits
making opportujpealed after the war. " There is no ernmental services, whether in gold standard and the issue of long time due to the
ample supply nities.
' ■:
:
consensus
as
to
exactly which the form of social security expan¬ paper money against government furnished
!. r
by the increase in gold
should be repealed or reduced. sion, educational aids, or public promises to pay, provided ample
held, the increased price of gold
Government Management and '
'There does seem to be almost construction, and (b) the national cash for those who wanted
to
and the increase in paper money
Cheap Money
>
unanimous
agreement that the habit of being careless—if not ac¬ hoard money or convert their as¬ for all uses.
By these methods of
Governments
have
taken
ad¬
tobacco
and
alcoholic beverage tually indifferent—about the pub¬ sets into money.
The converison increasing the supply of
money
vantage of cheap money to keep
taxes should be kept, but perhaps lic finances.
of assets into money brought on
there is plenty of room for fur¬
down the cost of their financing.
at reduced rates to avoid boot¬
4. Despite all these causes of still more liquidation with lower ther
expansion in the supply of Both in
England and the United
legging.
concern, the national government prices, and more money seeking cash and interest rates
may be
States
business
borrowing, and
without
disastrous
results, safety with low yields instead of driven much lower, by this
There is much debate regarding can
pro¬
lending abroad, have been re¬
with .high
yields. cess.
the income tax paid by corpora¬ but not without difficulty, meet speculating
The
same
decline
would
duced
to
the
minimum
and this
country's debt
service re¬ While money rates were low and follow in the price of
tions.
One school of experts takes the
any useful
has
limited
the
demand f fob
the view that the corporation tax quirements, especially if it can confidence in government bonds, commodity where the
supply was,
money.
The
process
of
maintain¬
should be repealed outright. Other maintain and enlarge its capacity which had always been the safest seemed to be almost limitless With
ing* an excess supply of cash by
To of investments, was high these little or no cost.
outstanding leaders think the tax for production of income.
increasing the price of gold and
should- be
used
but ; that
the assure high income levels sound bonds were bid up to high prices
This process of increasing the
issuing currency secured by gov¬
Both the British
policies are essential, among .them and low yields.
amount paid should correspond¬
supply of cash by devaluing the ernment debts has been the same
and the U. S. Governments took
ingly cut shareholders' taxes., A (a) a self-reliant, working popu¬
unit
or
increasing the price of in both countries.
But if this is
(b) a disposition among advantage of the low money rates
final group would keep a corpora¬ lation,
gold, and by increasing the sup¬ management f which
has
made
the
people to look to private, and the demand for gilt edge se¬
tion income tax as a definite part
ply of paper money secured by money rates low for war financ¬
of the post-war system and would rather than governmenal, action curities to refund their high yield¬
government
debts
can
continue ing that can be carried over into
provide
primary
protection ing bonds into lower rate bonds.
allow no credit on individual in¬ to
indefinitely, and money rates can peace time financing, a
wholly
against poverty, (c) the adoption This reduced the costs of servic¬
come.
be held down by the excess sup¬
different set up for peace time
of sound national policies toward ing the government debts and im¬
As has been indicated, if a high
ply of cash as long as people have business will be required from
the promotion of private economic proved the governments' credit.
level of national income is main¬
confidence that money will con¬
that with
which either
country
activity, and (b), most funamental Both governments increased the
tinue to have approximately its has ever had
tained,. there is little doubt of the
any past experience.
of all, the attainment of a decent price of gold. In the United States
country's ability to pay debt ob¬
present
buying power in the fu¬
The end of war should
the price of gold was marked up
bring a
peace settlement and of interna¬
ligations slowly and at the same
or
a
substantial
buying return to sound convertible cur¬
tional relationships favorable to from $20.67 an ounce to $35 an ture,
time reduce war tax rates.
On
power.
"
rencies
in
which the public can
world-wide peace and prosperity ounce; in England the price of
the other hand, the conclusion is
have confidence.
Can any coun¬
in all countries.
gold was marked up from 84s
The End of Cheap Money
also obvious that the payment of
try return to normal free..com¬
5.
The
exact
ll%d
to
168s.
In
terms
of
the
adjustments
by
our debt will impose on the econ¬
When the currencies were con¬
petition with the rest of the world
means
of which post-war
bud¬ currency units the monetary gold vertible into
omy
a
semi-permanent load of
gold and reserves and continue to furnish an excess
held was increased in proportion
getary
needs,
including
debt
some $5 billion to $7 billion a year
were
maintained to meet emer¬ supply of cash and maintain
low
to the
increased price
of gold;
additional to governmental costs service charges, can be met are
the interest rates were interest rates by the
then the supply of gold was in¬ gencies
inflationary
only
roughly
to
a
which would have been incurred susceptible
determined like the price of any and controlled
processes used in
creased from production, and the
The
if there were no debt. From pres¬ forecast at the present time.
other useful commodity by supply this war?
Is there any govern¬
most essential condition of secur¬ supply in the United States was
ent indications, .another approxi¬
and demand.
The highest bidder
ment that is willing to take the
expanded by' the flight from Eu¬
mately equal added load will re¬ ing a statesmanlike plan is public
got the money from lenders will¬ credit
for
maintaining
cheap
rope because of the threats of war,
sult from the war, namely, the interest in and awareness of the
ing to take the risks.
The many money and the future blame for
and
the
high
prices
for
gold
problems
involved
in
each
al¬
increased military and veterans'
different rates for money repre¬ the consequences of the
money
created by the devaluation.
In
policy.
Each
of us,
rehabilitation expenditures. There ternative
sented the many different risks,
management and the low
;

doubt

little

these

two

billion

national
This is

ernment

due

over

$10

cost

national

during the latter
It

gov¬

years

than ten

before

World

When it is remarked that

people can pay the
serious
question,
therefore, it is not intended to
suggest that the job will be easy.
Moreover, whatever tax system
we
may adopt will undoubtedly
;

without

interfere
business

tive

|
i

some

degree

with

plans and with produc¬

activity.

series

: Summary

pear

and

to' summarize

propositions which

ap¬

to be justified -by the facts
trends, of

thinking
1. The

now

Ken¬

appears

sonal
the

income tax

present

public .and private

to this time.

public 4oday

based

plan

about

rates

and

ranging from two-thirds to threefourths

present

and pos¬

ones

sibly with somewhat higher
sonal

In concluding these remarks, I

should

the

probable the bud¬
getary requirements will be met
by means of a sensible adaptation
of war taxation to peacetime con¬
ditions and that something like
the following tax system will be
adopted: (a) a revised death and
gift tax at rates not very much
below the present ones, (b) a per¬

an¬

the American

bill

certain

well above the

sum

government

War I.

make

and

tucky Congressional delegation is
acquainted with our views.
It

times the annual cost of the cen¬

tral

therefore, should study the situa¬

tion

will be added to the
budget; requirements.

1930's.

the

that

alone

year

total

nual

but

causes

tion

exemptions,
tax

rates and

cial

(c)

lower

possibly with

allowances

for

than

per¬

corpora¬

present

some spe¬

dividend

re¬

cipients, and (d) several selective
sales taxes at rates somewhat
duced

below wartime

probably

levels

re¬

and

lesser number of

exhibits commodities and services.

addition to

these increases in the

gold holdings and the increased
money value of the reserves there
was the expansion in paper money
resulting from the issue of paper
money against government debts.
In England this increase in the
paper money outstanding has gone
on

much

it has

States.

While the

crease

been

paper

the

United

percentage in¬
has not

money

large

has

been

and

the

supply of

venture

times

money

when

was

willing
many
risks.

money

the
the

demand

large such

for

during

period of confident business
tivity money rates were bid
a

in all markets.

funds

were

All rates for

marked

ac¬

new

This,
however,
never
represented
a
very large per cent of capital be¬
cause

most investments are

for

currency

has supplied the demand

for money
essary

hoarders, and the

cash

meet

balances

their

the

value
nec¬

bankers

demands from

de¬

duced.
flation

rising

gold
of

the

marked
paper

and the

currency

re¬

The first process is a de¬
process

which this

financed?

war

money
has been

Has this cheap money

policy been

expedient

which

must be undone in the reconver¬
sion to peace time conditions or
free

markets

all

kinds

abol¬

ished?

;•

up.

in the United
period of time.
However, these
large enough
demands
for
current
money
at
keep the supply of cash high
high rates usually caused a de¬
enough to meet all the needs of
cline in the prices of the lower
the banks for cash, and maintain
yielding long term investments
the cash ratio against deposits av¬
because of the higher price paid
eraging about 10 per cent, the fig¬ for
new capital.
ure regarded as safe and solvent
The present process of creating
by the public.
In the United
excess
supply
of
States the largest increase in the an
money
the world
must
in
currency has been in the Federal throughout
Reserve notes which at the time time be reversed and the supply
of this writing stands above 21.8 of currency reduced to the limits
of gold conversion at the
billions
present
against 4.9 billions
in
1939., This large increase in the legal price for gold or the price
States

rates

which

will

bring

■

Central Republic Corp.
Sponsors Radio Program
CHICAGO,

ILL.—Central

Re¬

public Corp., 208 South La Salle
Street, members of Chicago Stock
Exchange, have started a radio
program over WENR from 9:30 to
10 p. m. on

Sunday evening. The
February 18th.

first program was
•

—

Lamson Bros. & Co.

To Admit James Wade
CHICAGO, ILL.—Lamson Bros.!
& Co.y 141 West Jackson Boule-r
vard,,members of the New York
and

Chicago Stock Exchanges,
exchanges, will admit
James F. Wade to partnership in
and

other

money rates and a readjust¬ the firm

of March 1st.

■

Mmbm

DIVIDEND NOTICES

ORDINARY AND PREFERENCE

§§

A dividend of thirty-seven

and one-lialf cents (37]4i)

per

the
have
Stockholders the
payment on the 31st March 1945 of a
Final Dividend on the issued Ordinary
Stock for the year ended 30th September
1944
of sixpence
per
£1 of * Ordinary
Stock
(free of income tax)
and have
declared a first interim dividend on the
issued Ordinary Stock for the year from
the 1st October 1944 to the/30th Sep¬
tember 1945 of tenpence per £1 of Ordi¬
nary
Stock (free of income tax) also

Slock of this Corporation

H
£3

March

was declared payable

15,1915, to stockholders of

record

^=5

7.\
'■

•

Checks will be mailed.

II
M

^7.

|§

days

business

clear

3, seven
(excluding Satur¬

Lane,

Birchin

Philadelphia, Pa.
February 16, 1915

==g

day) before payment can be made.
Both dividends will
be paid against
the

MAKERS OF PHILLIES

Capital Stock in respect of, and out
for, the year 1944, was de¬
payable in Canadian funds on
March 31, 1945, to Shareholders of record
at 3 p.m. on March 1, 1945.
By order of the Board,
FREDERICK BRAMLEY,

of earnings

BROAD

deposit of one Coupon

•

STREET, NEW YORK 4.

the

February 15.

1945

of Directors has this day declared

Board

regular

quarterly dividend of $1,375 per
SVzVc Series Cumulative Pre¬
of
the
Company,
payable
on
April 1, 1945 to stockholders of record at the
close of business on March 17th, 1945.
Checks

will

the

Stock

ferred

mailed.

only, namely,

Coupon No. 195.
Holders of Stock

»,

Magma €oppcr Company
Dividend No.

i)0

dividend Of Twelve,
and One-half Cents (lJ^.c) per share was de¬
clared oil the capital stock of Magma Copper
Company, payable March 20;' 1945, to stock¬
On

February 21, 3945,

markets

Warrants to Bearer
who
have not exchanged Talon
No. 3
for
Talon
No. 4 but have
deposited holders of record at
the cfOse of business
Talon No. 3 with the Guaranty
Trust March
3, 1945. ■
7':'7
7.77
Company of New York in New York, in
IT. E. DODGE, Treasurer.
accordance with the arrangement which
has been announced in the
Press, are
notified that Coupon
No. 195 will be
detached from the corresponding Talon
No. 4 and cancelled by the Company in
London as and when
the dividends to
which they are entitled are paid.
The usual half-yearly dividend of 2*/2 %
(Continued from page 849) >
on
the 5%
Preference Stock (less In¬
more forged head and, as already
come
Tax)
for the
year
ending 30th
indicated, there still appears to be
September next will also be payable, on
scope for further improvement.
the 31st March
1945.
'
;
V
iv.
Internals were also very strong,
Coupon No. 83 must be deposited with
the
National
Provincial Bank Limited,
and there is now a clear move¬
Savoy Court, Strand, London, W. C., for
ment not only into bonds but also
examination five clear business days (ex¬
cluding
Saturday)
before payment is into equities.
Consolidated Min¬
,

American Cyanamid

Company
DIVIDEND

PREFERENCE

The Board of Directors of Ameri¬
Cyanamid Company on Febru¬

can

1945, declared a quarterly
dividend of 1
($.125) per share
20,

ary

of the
5% Cumulative Preference Stock of
the Company, payable April 2, 1945
to the holders of such stock of rec-'
ord at the close of "business March
outstanding

the

made.

DATED the 17th day of January, 1945.
BY ORDER OF THE BOARD,

5, 1945.

OPPENHEIM, Secretary.
Egham, Surrey.

Rusham House,

COMMON DIVIDEND

of Ameri¬

The Board of Directors

Cyanamid Company on Febru¬

can

20, 1945, declared a quarterly
dividend of twenty-five cents (25tf)

ary

share on the

per

of the Common

Stock of the Com¬

payable April 2, 1945 to the
holders of such stock of record at

Canadian

March 5,1945.

the U. S. dollar. 7
It would

CHICAGO GREAT WESTERN
'

RAILWAY COMPANY
25

York

New

Y.,

DIVIDEND

Board

The

21,

February
147

NO.

of the Anaconda
has declared a divi¬

Directors

Copper Mining Company

(50c) per share upon its
Capital Stock of the par value of S50. per
share, payable March 26, 1945, to holders of
such shares of record at the close of business
at 5 o'clock P. M., on March 6, 1945.
Fifty

dend

JAS.

Cents

DICKSON,

Treasurer.

Secretary

62V2c

dividend

has
Preferred
payable

declared on the 5 *0

been

Stock
on

March

30,

record

March

Corporation,

this

1945, to stockholders
close of business

the

Checks

1945.

16,

will

that

B. F.

BOAT

ELECTRIC

COMPANY

33 Pine Street, New
declared

snare

per

February

Illinois,

Chicago,

6, 1945

the

Stock

Capital

Company, payable March 10, 1945
holders of record at the close of
February

27,

February

15,

NOW

WAR PRODUCTS

MAKING

order

additional
share on

place

Canadian

million

disposal

the

some

dollars

of Britain for the

Canadian goods.

velopments, it appears that the
yield differential between Cana¬
dian external bonds and compar¬

domestic issues is at last in

of elimination. The forth¬

reports,

year

will

consist of

2% bond, will do nothing to
this

retard

movement.

the

contrary, it should set the pattern

The directors of

1945.
WHITE
Secretary

SANFORD B.
».

for

HARVESTER

International Harvester
Company
declared
a
quarterly dividend
of
Bixty-five cents (65c) per share on the com¬
mon
stock
payable April
16,
1945, to all
holders
of
record
at
the close of business
20,

umn

list of stocks, tiQEied

gave .a

Equitable Life's Assets
S318,329,008 Higher
Thomas I.

have declared
five

March

Chrysler Corporation

dividend of seventy-

($.75)

cents

outstanding
14,

record

1945,
at

per

v*'

Life Assurance

sje

Society of the United States, re¬

porting on the progress made by
The
Equitable during the past

stated that new insurance
purchased during 1944 aggregated
$609,026,000, comprising $380,375,000 under individual policies and
year,

Theses

another -list of

was

stocks with

specific buy rec*

ommendations.

With the

ex¬

holders of The

the

whole

market.

par¬

ticular, Nationals in a similar ma¬
turity
turn

range

which currently re¬

than 2% should move

"apidly into line.

Equitable showed the week.

$452,175,000 dur¬
ing 1944 to a total Of $8,897,000,000, an' all-time high..
The increase in dividend rates

record gain of

of policies put into
is being continued
total of $43,800,000 be¬
ing scheduled for distribution to
policyholders as dividends during
on

most types

effect last year
for 1945, a

1945.
in

Marking the continued growth
the financial strength of The

Equitable, assets increased $318,329,000 during 1944, a larger gain
than in any previous year, to a
total of $3,507,000,000, represent¬
ing funds held for the benefit of
3,200,000 owners of policies and
group
insurance certificates.
Holdings of U. S. Government ob¬

ligations aggregated
at the year-end.
Benefit
ers

and

$1,568,317,000

Meantime hold all

aries

long as it does there is no
point in disturbing commit¬
ments.
-

as a

while

result

military

jpf their deaths
Service. This

'')

More next

Thursday.
—Walter Whyte

expressed in this
necessarily at any
time coincide with those of the
Chronicle.
They are presented as
views

[The

article

not

those of the author

only J

LAMBORN& CO.

paymentf;to policyhold¬
their fanmies averaged

paid $2,816,000 to benefici¬
of 1,209 individual policy¬

positions;
okay, and so

looks

Market

.99 WALL

STREET

NEW YORK 5, N. Y.

$26,000 an hour throughout the
past year, a total qf. $230,992,000.
The Equitable during the past

holders

; *

|i§; SUGAR III!
Exports—Imports—Futures

represents slightlyfjess than 5%
of the total

amountfpaid on death
claims
among >117 policyholders
during the year.
17: ''

DIgby 4-2727

stockholders

close of

the

stock, payable

common

the

business

February 26, 1945.

OPPORTUNITY

7
Established

1856

for salesmen

Chairman, Finance Committee

KENNECOTT COPPER CORPORATION
Broadway, New York 5, N. Y.

February 16, 1945
cents (25c)
special cash distribution of
twenty-five cents (25c) a share have today been
declared by Kenriecott Copper Corporation, pay¬
able
on
March
31, 1945,
to stockholders of

Consolidated

follows:

'as

Edisohv 26; Public Service of
Parkinson, President N.
J., 18.,.
;

The' Equitable

was

latter about

18.
They are now, respect¬
ively, 27 and 20. Stops should

B. E. HUTCHINSON'

120

Former

here.

available about 24,

year

COMPANY

March

clared

est

COMMON STOCK

Directors

the

ing issue which, according to lat¬

business

DIVIDEND

The

considering

coming Quebec registered refund¬

1945.

INTERNATIONAL

Consolidated Edison or Public

Early in January the col¬ though they are Up since mem-

•

C. P. R. common stock was de¬

process

of the
to stock¬

1945.
Checks will be mailed by Bankers Trust
Co..
16 Wall St., New York 15. N.
Y.,
Transfer Agent.
H.
G. SMITH, Treasurer,

are

dividend of 75 cents

able

York 5, N. Y.

Directors
has this day
dividend of twenty-five cents

thorities

au¬

Turning to possible future de¬

PARSONS,

Board

The

' ;

„

competent

the

purchase of

mailed.

Secretary

★

unlikely, how¬

is the report that the

Preferred Stock Dividend

1945

seem

question from this angle. What
is more significant at this time

CO.

COPPER MINING
Broadway

ANACONDA

return of the
dollar V to parity with
the

STURTEVANT,
ever,

the

discussion

renewed

possibility

7:^77Secretary.

'v.'

ception of American Radiator
investment, touched 56%;
The
bought at 13^, it doesn't look
Canadian dollar in the free mar¬ $228,651,000 under
i'group insur¬ like you'll get them.; So I
ket was consequently steadily bid ance contracts. Policy lapses and
and, at 91/g% discount, has now surrenders dropped7to a new low suggest you forget them for
the time being unless they
reached the official selling level. rate;
77 "
As usual on such occasions, there
Life insurance owfoed by policy¬ reach
buying levels during
was

pany,

W. P.

dominated

are

•

outstanding shares

the close of business

ing and Smelting, which has long
been indicated as an attractive

about

stocks; bear markets by aver¬ Service of New Jersey; have
done- much in this market,
ages,

...

Canadian Securities

Steel

Crucible

28.

while the averages
38, stop 35; raise stop to 41;
showing little of a posi¬
U. S. Steel at 59, stop 58; raise
tive nature, it was interesting
:■
to see that quite a few stocks stop to 59.
7-7.;'
7'.;V"; %
s««
made new highs. There is an
Neither of the two utilities,
old saw to the effect that bull
Yet,

Secretary

GUNTIIER,

were

tect

profits. Here they are: >
American
Crystal Sugar,
few weeks, it didn't
bought at approximately 18
give the type of performance
Old stop 18 remains. Amer¬
which
pointed to anything
ican Steel Foundries at about
but higher prices.
It was
28, old stop 27; raise it to
merely a question of^iming.
29V2.
Baldwin Locomotive
And it was on that p®ht that
about 26, stop 25; raise stop
stress was made here.
the past

CITY INVESTING COMPANY

The

other reason than to pro--

Despite air the milling

around the market has had in

Secretary.

previous lows, that them have advanced substan¬
tially. It is now time to raise
signals the bear market!
the stops in th&se issues if for
Sit
*
*
J

clared

Montreal, February 12, 1945.

stops left no room for
doubt, v Since then most of

under the

York, 11,

Company of New
London, E. C.

Trust

anty
E

TREASURER

■,

nary

order

February 28, 1915.

•'

the

the 31st March 1945.
to
obtain these
dividends
(subject to the Final Dividend
being
sanctioned at the Annual General Meet¬
ing to be held on the 19th February
next)
on
and after
the 31st March
holders of Ordinary Stock Warrants must
deposit Coupon No. 195 with the Guar¬
payable

Annual Report

their

recommended

the Common

STOCK.

HEREBY GIVEN that

NOTICE IS

Directors

not specific,

them was

buy

independent

While the advice to

•.

the

(Continued from page 839)

jDividend Notice
meeting of the Board of Directors
held today a dividend of three per cent
(seventy-five cents per share) on the Ordi¬
At

action.

Walter Whyte
Savs

RAILWAY COMPANY

LIMITED

TOBACCO COMPANY,

NOTICE OF DIVIDENDS TO HOLDERS
OF STOCK WARRANTS TO BEARER FOR

which * showed

Tomorrow's Markets

CANADIAN PACIFIC

BRITISH-AMERICAN

Thursday/February 22, 1945

CHRONICLE

& FINANCIAL

THE COMMERCIAL

$54

H. Hentz & Co.

INCREASE YOUR INCOME!

A cash, distribution of twenty-five

record

2d
*

and

the

business

February

UNION CARBIDE
AND

CARBON

194&

Secretary,

CHEROUNY,

CORPORATION
ITO

SOUTHERN PACIFIC COMPANY
DIVIDEND
QUARTERLY

109

NO.

DIVIDEND

of Seventy-five

Cents ($.75) per share on the Common Stock
of this
Company has been declared, payable
at the Treasurer's Office, No.
165 Broadway,
Jtm.'
York 6,
N.
Y., on Monday, March 19,
ImS,

to stockholders of record at

the

payment of

J.
New

York, N.

three o'clock
1945.
The
closed for

February 26,
will not be
this dividend.

P.
M., on Monday,
istock
transfer books

Y.,

SIMPSON,

February 15,

Treasurer.

1945.

A cash dividend of

(750)

per

Seventy-five cents

the" outstanding

capital stock of this Corporation has
declared^ payable April 2, 1945,
to stockholders of record at the close
been

of business March 2,

1945..

ROBERT W. WHITE,

Vice-President

Improve
Bonds).
lucrative

skill in merchandising ; securities (Stocks and v
Excellent opportunity for new men to enter this

your

profession.

>. ••

Selling Securities Suc¬
cessfully" commences February 27 under instruction of Frank
M. Cryan.
This course will unquestionably give the salesman
more comprehensive understanding
of The Science of Sell¬
ing, thus enabling him to achieve greater financial success. 7

•

York

Stock

Exchange

New

York

Curb

Exchange

New

Spring Term Course "The Science of

phone—

NEW YORK INSTITUTE OF

Commodity
New

(Successor to New York Stock Exchange Institute)
20 Broad Street, New York 5, N. Y.

IIAnover 2-5830

Orleans

Cotton

Exchange

Exchange,
Board

Inc.
Trade

Cotton'Exchange

And other Exchanges

FINANCE

York

Chicago

For information write

Members

New

Y. Cotton Exchange Bldg.
NEW YORK

CHICAGO

DETROIT

GENEVA,

4, N. Y.

PITTSBURGH

SWITZERLAND

Volume

161

Price—Offering price of pre¬
is. given at $20.75 per share

Offering

Calendar Of New
CENTRAL

;

filed

CO.

series

■

(no

share.
issued

and

Central

the

outstanding

Electric

value $50
registered

stated

par),

All

and

Gas

per
are

owned by

are

(parent).

Co.

issue

Jan.

27,

Curtis, Lofewi & Co. and associates.
!

Feb,

Offered-^Offered

GAS

OKLAHOMA

Jan. 18,
for

first

bid

100.02

other

Feb.

awarded

Inc. and associates

2%-s,

Offered—Offered

interest* by

due

1945.

Jan. 25,

Awarded—Issue

to Halsey, Stuart & Co.,
'•on

//,','

1, 1975.

Feb.

101

and

Stuart & Co. and 134
dealers/';1; ./ : i-1 •/ -

Halsey,

investment

and

the

with

funds

follow:

refunded

Re¬

5% bonds
due April 1,: 1945, $9,246,000 at 100;> firstmortgage
collateral and refunding 5V2S
funding and extension mortgage

$17,500,000 at
100, and first mortgage collateral and re¬
funding 5'/2s series D due Feb. 1, 1960,
$5,500,000 at 100.
Ogderr-Corporation has
indicated that it intenofnto sell the 2,165,series

due. Feb.

1953,

NEW FILINGS
List

statements

filed

were

registration
less than twenty

whose

issues

grouped according to dates
on
which
registration statements will
in normal course become effective, un¬
less accelerated at the discretion ef the
days

ago,

SEC.

which

sale

tures.

Feb.

filed

AUGUSTINE
registration

,-vv

GAS CO.
statement

price of preferred is
that of common $15

Underwriters—Clement

successful

bidder.

derwriters

will

Johnson, Lane, Space & Co.,
Robinson-Humphrey
Co.; Courts &

Co.;
Putnam

Inc.;

Co.,

Inc.;

&■-Arnold. Inc.; Milhous,
McKnight,. Inc., and J. H. Hils-

Co.! Kirchoier

Martin
man

Inc.

Co.,

5 filed

registration statement for 40,000 com¬
stock purchase warrants and 40,000
shares of common stock par value $1 per

mon

for 300,000

statement

City, Mo.

issuable pursuant to these
Details—See issue of, Feb.
15,

share,

lent to the 2Vs7o

warrants.
1945.

Offering—40,000 shares of common stock
issued and outstanding and are not
•Coffered for account of company.
Company
"is offering 40,000 shares of common is¬
suable
upon
the exercise of
the stock
purchase warrants and the payment of $7
per share.
Underwriters—Not named.

addition

under¬

principal

2-5587. Form

Registration Statement No.

(2-15-45).

unextended
the

statement for
The

stock.

issued

are

capacit¬

fixed

will

filed

50,000

Paschkes

Otto

President *

FEB. 27

being

are

Feb. 8 filed a

BENSON AND HEDGES on

stock

common

(no

S-l,

par*.

•

issue of Feb.

Details—See

15, 1945.

Underwriters

•

convertible

pre*

holders of common

stock

cumulative

standing
'

and

stock

ferred

rate of one share of
for each two shares of stock, pre¬

subscription

for

.common

ferred

held

Feb.

27,

1945. at

Tobacco ar.d Allied Stocks,
owned of outstanding voting
stock has expressed its-intention of exer¬
cising its subscription rights and also has
agreed to subscribe for all unsubscribed
shares at $25 per share.
Underwriters— Agreement
with parent
made it unnecessary for company to enter
share.

Inc., majority

•

.Into any

underwriting agreement.

MONDAY, MARCH 5

PETROLEUM QORP. has filed

WARREN

registration
statement for $3,000,000
sinking
fund
debentures,
due
March 1*1955 (interest rate to be filed by
amendment)
and 150,000 shares of com¬
mon
stock (par $5i.
The stock is issued
and outstanding and
is being offered by
a

;

10-year

•

** i,

•

SUPPLY

BLUEFIELI)

filed

has

CO.

statement for 4,990 shares
stock/ par $100.

common

Cooley

and

electrical

Distributors

—

supplies

contractors

and

present stockholders on a pro rata basis
their holdings as of March 15,
1945.

within

stock unsubscribed

days

at the discre¬

offer may be sold

tion of the board of directors for cash

price

such

persons

less

not

Bank

National

as,

Tulsa, Okla.
Business—Manufacturing, marketing and

of
natural gasoline
and
liquefied petroleum gas, etc.
Offering—Of the $3,000,000 debentures
to be sold bv the companv. $1,000,000 are

four stockholders at the
public
price and the remaining
$2,000,000 are to be sold to the under¬
writers
for
public offering.
The public
offering prices of the debentures and the
•;.'- stock will be filed by amendment.
The
sale of debentures to stockholders will be
made as follows: W. K. Warren, President
,
and Director, $500,000; Natalie O. Warren,
$100,000; Gertrude L. La Fortune, $300,000,
and Mabel H. Felt. $100,000.
The selling
stockholders include W. K. Warren, 80,000
shares; Natalie O. Warren,
10,000; Ger¬
trude L. La Fortune, 43,800, and Mabel H.
Felt,
15.000 shares.
Proceeds —Company
will use approxi¬
to
offering
sold

•

■

reserved

certain stock

purposes.

sale

stock.
Merrill

—

Beane

head

Such shares

subscribed

for

offered

•?

as
are

to be issued

the

of stock

public

by the

not

are

stockholders

will

underwriters

has

4,985

filed

Gearhart

Dec.

for

filed

($100

filed

.registration

CO.

POWER

statement

The dividend rate will

par).

amendment.

issue of

Jan.

Offering—^Company

and

such

the

for

the

purchase

11,972

proposes

from

ex*

changed pursuant to the exchange offer.
POWER

filed

1944

40,000

CORP.

registration

cumulative

July

21,

statement

foi

stock

preferred

The dividend rate will be sup¬

by amendment.

Details—See

issue of July 27, 1944.
Offering—Stock is to be offered for sale

the company pursuant to Commission's

competitive

bidding

Underwriters
filed

GENII

Rule

U-50.

Names

underwriters

post-effective
bidder

will

divi¬

the

name

CORP.

registration

for

statement

filed A

1944

23,

1,868

stock..

common

securities

issue

Jan.

registered

direct

assistance

the

1945.

the

public

underwriters

Class

common

7,470

and

stock.

Address—519 Commerce Building, Kansas
Business—To
insurance

eral

act

the

agent

general

companies and

to do a gen¬

business for insurance com¬
Incorporated Dec. 22, 1944.
Offering—It is proposed that preferred
agency

panies,
stock

etc.

Class

and

offered

only

blocks

in
two

sum

will

authorized

Class

preferred

and

for

the

common

Proceeds—To provide capital,

;

Underwriters—None named.

issued

are

represent

Jan.

and

filed

outstanding and

issue

Feb.

Offering—The offering
share.

financing.

new

.-Details—See

1945.

price is $10 per

Securities

Co.,

In¬

NATIONAL
Dec.

for

PRESSURE

filed

150,000

issue

stock

common

Dec.

will

stockholders

(par,

28,

1944.

offei'cd

record

com¬

Jan.

25,

the ratio of one and one-half
shares for eacli share of stock held at $15
in

1945,

share.

per

Subscription

rights

expire

Registration Statement No.

OF OFFERING

CO.

below

present

list

Issues

whose registration statements were

days

•wenty

dates

tffering
mined

are

have

ago,

not

unknown

but
been

filed

whose
deter¬

as.

debentures due serially
March 1, 1948 to Marcji 1, 1955.
Interest
rates will be filed by
amendment.
serial

for

filed

$4,000,000

Jan.

185,000
and

ALUMINUM

filed
shares

ALLOYS,

registration
of

common

INC.

statement for
stock (par $1)

40,000 shares of $l.lo cumulative con¬

vertible

preferred

(par $17.50).

Details—See issue of

Feb.

1945.

registration

first

mortgage

issue

Details—See

Competitive

Feb.

Bidding—The

the Commission's

bidding

with

rule,

the

over.9,600 Colonels awaiting pro¬
motion.
The nominations of 77
other
Colonels to be Brigadier
Generals named by the President
on Jan. 25 at the time of his son's
nomination were also
Senate

the

named

OHIO
a

WATER

SERVICE

registration
of

are

common

now

sold by Federal

CO.

statement
stock,

par

outstanding and

Jan. 25 said:

subcommittee,

in charge of
said the in¬

quiry, relating only to priority
practices, did not involve in any
the right of young Roosevelt
to a promotion.
Senators Bridges
and
Maybank agreed.
Senator
Revercomb said that 'you may be
way

record,- it will be confirmed.
If he isn't, it will be opposed.'"

to
be

80,880
The

are

being

Jr.,

Details—See

issue

Underwriters—Otis

Directors named were: Fred W.

Leo P. Deignan, M.
Keely,
MacDonald, William

Birtwell,

Leslie Denning, Thomas P.
Thomas

Vanek and Marvin W. Waldbillig,

Walter F. Sul¬

Kenneth Martin,
livan

Herbert Cullinaii were

and

presented

nominations

the

for

■

committee for 1945.

Russia Denounced by

Lithuanian Council
The Lithuanian American Coun¬

cil, Representing,'it said, almost a
million
persons
of
Lithuanian
descent in the United States, at

three-day

the conclusion of

ecutive

meeting

Feb.

ex¬

Washington,

contended that Soviet

Russia has

imposed

totalitarian

regime

the Baltic

States and

appealed

and

free

States

United

the

Government

help them get "a

Lithuania

independent"

again, it was stated in Associated
Press
ton

Feb.

18, which added:

Council

The

Washing¬

from

dispatches

this

asked

also

Government to

help alleviate the

physical suffering of the Lithuan¬
ian

•

relief

established

nels.

Council's

chan¬

statement

aid

providing

people

through

lived
that

the

outlining

position,

that

said

and

Russia

with

peace

Russians

the

agreed to

had

of Dec.
&

respect their national sovereignty
and

Co.

14,

"When the Nazis were

ad¬

added, "the Soviet Union took
vantage of international

its treaty pledges by

and violated

introducing

and

States

Baltic

the

occupying

confusion,

of arms

force

Communist regime."

Recalling that the United States,
Great Britain and Russia,

the

Yalta

faith

firmed

the

declaration,

Atlantic

the

through

had

reaf¬

principles of

Charter,

which

in¬

principal

ples to create democratic

institu¬

STAR DISTILLING CORP.

public will be $110 per share.
Details—See issue of

Underwriters—No

Aug. 24, 1944'.
named,

underwriter

their

own

the

choice,

Aug

registration statement for
5,000 shares of $100 preferred stock, noncumulative
and non-participating.
Price
1944 filed

pressing

Paris," the Council's statement

cluded freedom for liberated peo¬

1944.

are

theiF in¬

interfere

not

ternal affairs.

tions
OLD

Jackson

Webber,

Paine,

Curtis.

"Chairman Stewart,

the

Secretary,
Daniel BreitF. Everstadt & Co., and
Treasurer, Robert J. Humphrey,

Costa;

bart,

Associated

promotion.

his

$10.

Water & Gas Corp.

re¬

bonds

Dec.

were

for

ness

amend¬

for

nomina¬
were

the basis of

officers

following

Lithuania, Latvia and Estonia had

saying that the Army
priority practices accorded his bull
mastiff, 'Blaze,' in a cross country
plane to Hollywood would not
enter into consideration of his fit¬
ported

14,

Senators

underwriters.

Roosevelt's

Col.

several

tion

approved by

Feb. 12,"

titled to promotion on

the successful bidder.
be

state¬

are

rate

Col. Elliott Roosevelt

shown

If he is en¬

competitive

interest

and

charged

denied that favoritism

Democrats

ment.

filed

Republicans

will receive

1945.

bonds

be sold under

Underwriters—To
ACME

"previously

that

stated

Feb.

Associated

Washington on

careful consideration.

POWER

1975.

named by

(2-14-45).

LACLEDE GAS LIGHT CO. has filed a
registration statement for $19,000,000 first
mortgage
bonds
due Feb.
1,
1965, and

Jan.

ment

UNDETERMINED

2-5585. Form

■„

PENNSYLVANIA

NORTHERN

Feb. 12, by

certain the promotion

25.

Feb.

DATES

Press advices from

CO.

statement

$2).

Offering—Stock

(2-19-45).

COOKER

registration

Brig,-Gen.

General.

Brigadier

Press accord

dianapolis, is the principal underwriter.

11, confirmed the
nomination by President Roose¬
velt of his 34-year-old son, Col.
Elliott Roosevelt, to the rank of

Underwriters—Cities

mon

Registration Statement No. 2-5590. Form
S-2.

$100

registration statement for 60,000 shares of
class
A
preference
stock, par $1.
The

Details—See

$101.

CO.

the

Feb. 21st at the Henry

First Vice-President, Joseph
F.
Hughes, Blair Securities Corp.;
Second
Vice-President,
Joseph

vote of 53 to

With
JONES

The U. S. Senate, on

auto¬

automobile finance men

one

stock

common

factory

mobile dealers and

Confirmed

share.

HERFF

not

City, Mo.
for

price

INSURORS,

stock

preferred

Price—Offering

Offering

Elliott Roosevelt Is

was

Dec.

yonal Association *b"f Life Under¬

some

amendment

oh the stock,

rate

dend

—

Con¬

vention, the Life Insurance Asso¬
ciation of America, and The Na-

not

are

Commit¬

American Life

the

•

Underwriters—Company plans to sell the

DEALERS

statement

Security

Social

the

writers—paper.

1945.

invite
proposals for services to be rendered to
it in obtaining acceptances of the exchange
offer of new preferred stock for old pre¬

Y.—$2.50.

Security—A

Social

LIGHT

11,972 shares of preferred stock, cumu¬

lative

—

Square, New York 3, N.

tees
OHIO

CENTRAL

Street,

University, 100 Washington

York

Co.,

principal underwriters.

Details—See

named.

registration statement for

Proceedings
of the Institute on Money and the
Law—1945—LawSchool,
New
law

constitutional

share.

per

Underwriters—Kobbe,'

per

Lynch,
Pierce,
the underwriting

with the names of others to be sup¬
plied by amendment. /'//:/
/■"• /;

$3,000,000

option warrants

exercised.

due

.group,

S-l.

when,

options

experts in the fields of domes¬
tic
and
international monetary
matters
and
international
and
16

the

common

Underwriters
Fenner

issued

Feb.

Ralph
Jones, E. H. Rollins & Sons, Inc.;

Institution-

Money and the Law—Views

five

200,000

by the corporation to the underwriters are

without

AUTOMOBILE

INC.

of the proceeds to pay a
principal amount of
$750,000 and the balance will be added to
working capital.
Selling stockholders will
receive
the entire net proceeds from the
loan

bank

each

for

share;

per

Tribunals—Man-

Brookings

The

and

200,000

Pine

Washington 6, D. C.—cloth—$2.50.

additional shares
to be issued when, as and if

and

Interna¬

ley O. Hudson—The Carnegie En¬
dowment for International Peace

1945.

Uf-certain) outstanding

successful

$751,813

mately

Feb

reserved

are

the

Street, New York 5, N. Y.—paper
—100.
International

Feb.

$1.60

The

(2-16-451.

•

held

than $100 per share to
in their judgment, will

SATURDAY, MARCH 10

Building,

additional

four

Underwriters—None

Tulsa

-transportation

series

registration statement for 1,400,000
of capital stock, par value 50 cents.
issue

The

Gerschen-

Policy,

Economic

tional

1944.

INC.

Wall

Henry Hudson Hotel, New York.

will be offered for

HELICOPTER,

will

Registration Statement No. 2-5589. Form
S-l.

kron—Committee

CORP.

competitive bidding.

New

with

Relations

Economic

registered 1,000,000
are to be offered
presently proportionately
to
holders
of outstanding stock on basis

are

held

Co.,

Offering—Of shares

was

held

elected for 1945: President,

1974.

Offering—The bonds
sale

was

U. S. S. R.—Alexander

bonds,

mortgage

Association

Inc.

Bureau, 610 Fifth Avenue,
York 20, N. Y.—paper.

statement

Details—See issue of Dec. 7,

at a

promote the best interests of the company.
Proceeds—The proceeds will be used to
reimburse the company for funds spent in
opening additional stores and for other
corporate

first

$2,000,000

(par $100).

after such

POWER

registration

3V»r/o, due Dec. 1,

plied

Any

dealers.

Address—2000
.

filed

FLORIDA

mill,
and

mine,

stockholders.

;

Dec.

iers

George

Co., Inc., Brailsford
Exnicios & Co.. Inc.

Offering—The offering price is $100 per
share.
The new common is being offered
to

Brothers,

Ferris,

equipment, etc.

Bond

The annual dinner of the Cash*

report on Australian thinking
war and post-war problemsAustralian News and Information

shares of

Co.,

ARKANSAS-MISSOURI

Address—Bluefield, West Virginia.
Business

Buckley

Inc.;

Pomeroy,
R.

ferred

registration

common,

$25 per

•

Allen

—

Details—See

WEDNESDAY, MARCH 7

Offering—Company is offering the 30,000
shares of common stock to holders of out¬

and

Goodwin, Inc., E. W. Clucas & Co., R. H.
Johnson
&
Co.,
Schoellkopf,
Hutton
&

by amendment.

(2-15-45).,..
v-

Noel & Co. Others

Van Alstyne,

Registration Statement No. 2-5588. Form

30,000 shares of

registration statement for

bond

stock.

common

President,

Vice

respectively, of the company, who will re¬
ceive the proceeds from the sale.
/
Underwriters—The underwriting group is
will be filed

the

Elects New Officers

Bookshelf
Australia Looks to the Future—

Hetenyi,

Paul

and

Executive

and

headed by

fund

sinking

gage

TUESDAY,

underwriters

Inc., and Bond & Goodwin, Inc., are named

amendment.

Proceeds—The
sold

offered

first mort¬

condensers.

Offering—The offering price to the pub¬
lic

"per unit"

50,000 shares

known

also

the

are

Cashier's Association

Business Man's

interest to

accrued

of $1,000

and

Business—Manufacture
ors,

are

bonds

6 7o

offering price

exercised,

and

consisting of $1,000 20-year 5 </o

CO. has filed

and outstanding and do not represent new
financing,
'
' ,
Address—285 Madison Avenue, New York

City,

102 Vs

public

initial

MANUFACTURING

common

company's

1945.
After the expiration of the
extension offer, an amount equal to the

Details—See

writer.

the

April 1,

named

NEW YORK 4, N. Y.
BO 9-7946

redemption premium, and
shares

redeemed at

filed

trust.

Underwriters—Investors Fund, Inc., Kan¬

registration

par)
common
stock.
The extension
offer
will expire at noon Feb. 26,
1945.
Bonds not tendered for extension will be

•

Offering—At market.

of interest

42 BROADWAY

i$5

Proceeds—For investment.

Mo.,

TELLIER & COMPANY

maturity date to April 1,

annum and to receive in consideration
for such extension $25, the amount equiva¬

registration

shares of beneficial

••;'/'

per

BENDIX

City,

iK/'i

$2,-

Baltimore Avenue, Kansas

Address—1016

sas

1, 1945.

outstanding

reduction

the

and

1965

the

extension

interest.

•

of tendering their bonds for redemp¬
as of April 1,
1945 at 102 Va and in¬

MUTUAL TRUST has filed a

SOLAR

Feb.

CORP. on

un¬

INFLATION HEDGE

terest, or, in the alternative, to assent to an

for

S-5.

STORES

the

names

■

TUESDAY, MARCH 6

SATURDAY, FEB. 24
DIANA

The

filed

named

S-l.'(2-14-45).

Evans & Co.,

bidding
by the

competitive

will

Business—Investment

Inc.;

Chisholm

sale

rates

interest

statement for $2,first mortgage sinking
shares of capital

Details—See issue of Feb.

amendment.^
Registration Statement No. 2-5586. Form

MNo. 2-5582) for 6.250 shares of 5% cumu¬
lative preferred stock, par $100, and 30,000
chares of common stock, par $10.
Details—See issue of Feb. 8, 1945.

Varnedoe,

for

offered

Offering—Offering
$100 per share and
per share.

v1 f-S;:'/'/)///./'

Underwriters—Bonds and debentures will
and

SAVANNAH-ST.

simultaneously with the
its bonds and deben¬

Jan.

000,000 20-year 6% first mortgage sinking
fund bonds due 1948 are given the privi¬

Laclede

the recap

under

receive

will

Laclede

plan

THURSDAY, FEB. ZZ
on

common^stock of Laclede

296 shares of new
Gas

(par $5).

tion

are

CO., INC.

40,000

and

stock

lege

effectuated
under
a
voluntary plan. filed by Ogden
Corp., parent of Laclede Gas and subsidiary
companies to comply with Section 1Kb)
of the Public Utility Holding Company Act
which was approved by the Securities and
Exchange Commission on May 27, 1944.
transactions

securities

and Gil-

PRODUCING OIL ROYALTIES

Offering—Holders

$32,246,000.

redemption of debt aggregating

The

share.

registration

bonds

will be used for

treasury, funds

other

per

PRODUCTS

fund

Corp, together
the sinking funds

Ogden

held

now

•

000,000 20-year 5%

the

Co.

Electric

filed

,••'.(•

the sale of

Union

to
from

and

■>.

debentures

properties

Missouri

The

statement

bonds,

mortgage

Details—See issue of
Bonds

CO.

ELECTRIC

1945 filed a registration

$35,000,000

Feb.

per

len & Co.

together with pro¬
ceeds to be received from the sale of elec¬

and

$52.25

ishare and dividend.'' ,/

!/••.:r/ /://,•

•

-Proceeds—Proceeds from
bonds

common

utility.

Offering—The price to the public of
and
debentures
will be filed

amendment.

Underwriters—Reynolds & Co.,

Louis, Mo.

bonds

tric

1945.
Underwriters—Paine, Webber, Jackson &

Details—See

Business—Public

Jan.

registration statement for 35,000
shares of S2.&0 cumulative preferred stock,,

':'"

I ;;'
r:
■j.:

TELEPHONE

Security Flotations
Address—1017 Olive Street, St.

OFFERINGS

J .V/.1

■'

•!'

stock

ferred
and

855

CHRONICLE

THE COMMERCIAL & FINANCIAL

-"Number 4362

Council called upon

this Govern¬

the

Lithuanians
independent"

ment

achieve

help

"free and

country once more.

;

•■"

THE

856

COMMERCIAL & FINANCIAL

Thursday, February 22,

CHRONICLE

New

England Public Service.
Preferreds

Teletype
NY

^Trading Markets

Firm

Majestic Radio

1-971

Underwriters—

FOREIGN SECURITIES
v.
<•

Telephone

.j.. A

'•

v,,

t-_.

;

'■

Sentinel Radio
Delta Air Corp.

Secondary Market and

all issues

HAnover

VV,

1945

Bendix Home

Appliances

2-0050

Wholesale Distributors
FOREIGN

OVER

SECURITIES

Street

•

MARKS &

AFFILIATE: CARL

THE

m.s.wien&co.

COUNTER SECURITIES

SPECIALISTS

50 Broad

Foreign Securities

PA INC.

f?ARL MARKS &

Members N. Y.
40

New York 4, N.Y.
CO. Inc. CHICAGO

Security Dealers Ass'n

HA. 2-8780

Exchange PL, N. Y. 5
Teletype

1-1397

Kobbe, Gearhart & Company
INCORPORATED

National Radiator

Bought

—

Sold

—

the

bonds

Keyes Fibre Class A

1-576

1914 1

Established

demand for securities by the financial

insti¬

directly responsible for the sharp rise in prices of
Government obligations, it was pointed out by students of the money

York 6, N. Y. • •
9-7400
Teletype: NY 1-375

have
contributed indirectly to the upward movement in quotations for
these issues.
It was noted that excess reserves of the system
have been maintained in part, through Government disbursements
from accounts with the Federal Reserve Banks, and the excess of

markets that the action, or

Governments"

U0ur Reporter on

...

RALPH F. CARR & CO.
BOSTON

tutions has been

Trinity Place, New

Telephone: BOwling Green

considered too long.

A FACTOR

the heavy

While

originally offered, because

at 100, when they were

the maturity was

Quoted

HoilRqseSTrsster

By JOHN T.

york

Keyes Fibre Common

Type

FEDERAL

Company

5
Teletype

Bell
new

Enterprise 6015

2-3000

REctor

YORK

NEW

England

Northern New

Association

Dealers

Security

STREET,

Class <<A"

National Paper &
•

York

philadelphia telephone

telephone

Consolidated Publications
-

New

NASSAU

Corp.

Sylvania Industrial
Hearst

Members

CHIPPENDALE, JR.

lack of action, by Federal authorities

New York

Teletype

Hubbard 6442

Hanover 2-7913

BS 328

specialize in all

Insurance and Bank

Stocks

Industrial Issues

has placed additional reserve funds at

expenditures over receipts

MASS.

Boston

Investment Trust Issues

Public Utility Stocks and Bonds
which have made it advisable to con¬ the disposal of the banks of the country. . . .
TEXTILE SECURITIES
centrate a large proportion of the wartime debt in securities of short
It is indicated that if the Governmental authorities were not
maturity will continue in time of peace. :. . . The funding of a major
in agreement with the action of the Government bond market,
Securities with a New Eng. Market
portion of the short-term debt into long-term securities, on the other
they would not have continued the policy of keeping excess reV-:|
hand, would serve merely to increase the interest cost to the Gov¬ ; serves at the billion-dollar mark or higher, as was the case in
ernment, and to shift the risk of future changes in interest rates
the recent past.
Frederick C. Adams & Co.
Specialists in
'■ ./ (and corresponding movements, in the opposite direction, of bond
Holdings of Government bonds by the Federal Reserve Banks
New England Unlisted Securities
prices) from the Government to private investors.
. T see no need,
24 FEDERAL STREET, BOSTON 10
therefore, for any large-scale refunding of short-term Government amounted to $824,670,000 on Feb. 15,1945, a decline of only $93,045,000
Established In 1922
securities into long-term ones during the. transition of post-war from the totals reported at the end of the last War Loan, when the
Tel. HANcock 6715
Tele. BOston 22
periods. . .These statements by Secretary of the Treasury Mor-; rise in the Government bond market started; ^ . These sales of
genthau on "Debt Management," in his annual report-to the Con¬
Government bonds by the Central Banks compare with bond pur¬
gress for the fiscal year 1944, gave added impetus to an already
chases bythe member - banks frbm Dea 20, 1944 to Feb. 7, 1945 of
strong Government bond market which last week again moved to
on
new all-time high levels, v. r The stand taken by the Secretary of
$852,000,000. ...
the Treasury with reference to the handling of our huge debt gave
official confirmation to factors that have been evident in the money DISTRIBUTION
Assistant Secretary of the Treas¬
markets.
These factors are: ;
During this period the government bond market has gone to allury Harry White on Feb. 20 de¬
>
(1) Interest rate will remain low. Because of the large debt, which time highs, and the action of the Federal authorities in disposing of nied that the United States ancl
will continue to increase, interest rates must be kept down
only a small amount of their bonds, has led to speculation as to the Soviet Union were negotiating
so that the debt charges will not become more of a burden. .
.
whether or not the Central Banks had large enough holdings of long- for a settlement on defaulted Im¬
(2) ■„Service charges on the huge debt can be kept down through term government obligations to have had an important effect on the perial Russian Government bonds,
said a United Press dispatch from
!
a large short-term debt.
It is cheaper to finance with %%
Treasury bills, 7/a % certificates of indebtedness and 1 % or rising market, even if they had wanted to, . . .
Washington on Feb. 20, which
The
1^4% Treasury notes than with 2% and 2Yz% bonds. . . .
sha^p demand for the last four maturities of the partially added:
"The same circumstances

•

;

Treasnry Warns
Russian Bonds

•

*•

(3) The Government

has such complete control over the money
not concerned about refunding of ma¬

markets that they are
turing obligations. ...

ures

large

with

•

(4) The pattern of financing used during the war,
a
\ floating debt, will not be changed with the coming of peace.
It is indicated that the conversion of short-term securi¬
;

....

with low rates, into long-term obligations with higher
rates will not take place, if it results in an over-all increase
in debt charges.
Long-term refunding operations will prob¬
ably be coordinated

with a program of debt

retirement...

following:
HOLDINGS

change

Some of the

Comm'l

Out¬

of the intermediate

recent purchases

Banks

Pressurelube, Inc.

' '

Canadian

U. S. Radiator, Pld.

Securities
Investment
Recom¬
and Literature

mendations

Funds

....

Governments

Our

Reporter

Our

Reporter's Report
Utility Securities....

$31

$135

43
'21

73
73

$931

16
12

121
205

$363

472
425

1,485

23i

due 1960-65-

760

159

111

110

296

$600

$392

$673

$1,466

$5,997

$74

$2,645

Total

settlement.

$48"

$146

Real

w. T. BONN &
Broadway

CO.

BANK

PUBLIC UTILITY

for each
gain of 5^
points, or $52.50, on the day.
In
1939, before Russia entered the
war against Germany, these bonds
sold as low as three-sixteenths of
1 point, or $1.87 a $1,000 bond.

Exchange at 20, or $200

$1,000 bond, for a net

Newborg To Admit

—

BOUGHT

INSURANCE

INDUSTRIAL

REAL ESTATE

—

SOLD

York

mit

208

So.

Ruth

QUOTED

Blocks

La Salle St., Chicago

of Securities

RANdolph 3736

Securities

Ohio Securities

Section on page

Exchange

WANTED

WESTERN UNION

TELEPRINTER
<

•

"WUX"

BELL

SYSTEM

TELETYPE

CG-989

Hill, Thompson & Co., Inc.
Markets and

120

Situations for Dealsrs

Broadway, New York 5

Tel. REctor 2-2020
.

838. *

of the

and
exchanges, will ad¬
Weinberg to limited
Stock

partnership on March 1st.

COMMON STOCKS

—

Street,

other leading

& REITZEL, INC.

880
848
856
883
839

839

Newborg & Co., 30 Broad
New York City, members

LUMBER & TIMBER

845
855
849

Now York 5

Telephone COrtlandt 7-0744
Bell Teletype NY 1-886

planned now," Mr. White said.
Yesterday the bonds—the 5V2%
bonds of 1919 and the 6V2S of 1921
—closed on the New York Curb

New

Estate

Says

130
109

127
73

being made; none
and none is

made,

been

has

Unlisted Securities

Specializing in

:
832
Securities
846
Tomorrow's Markets—Walter Whyte "

Railroad

$115

$988

Pag<?

Public

vestors

1955-60_

Dealer-Broker

Mutual

Banks

due 1958-63-

Stocks........ 842

Personnel Items
Calendar of New Security Flotations

Broker-Dealer

III. Power Div. Arrears

Co.'s

due 1956-59,

BONDS, PREFERRED AND

Insurance

Co.'s

234

INDEX
.

In¬

Insur. Casualty Fed. Res.

omitted)

234

; 27e& due

V' '•

Other

and

market experts characterize this as the worst type
wishful thinking, and point out that every action of the Govern¬
ment in financing its needs gives proof that the large debt will be
handled the honest way, the hard way. . . . Also, it was recalled,
that in the not too distant past, many institutions using this same
kind of thinking were not very enthusiastic in their purchases of
Money

Bank and

Fire and

and long-

reported, have been made because of fear that
in the future large holders of Governments will be,forced to
take long-term issues with a much lower coupon rate. . . .

Eastern States Pfd.

Life

919

term issues, it is

120

"No deals are

982

$2,611

Mutual

Savings Savings

Banks

security

($000,000

interest rates indicated in the foreseeable
future; and no large increase in long-term obligations looked for,
many institutions that have been heavy in short-term Government
issues have rushed into the market to build up their positions in the
longer-term obligations. . . . As a result of this buying the yield on
Government obligations has gone to historical low levels. . . .
no

Stock

Amount

loans, repudi¬

the Soviets after the revo¬
lution, have been bid up recently
to the highest prices in 17 years
on rumors that the Soviets might
make

Agencies

Total

standing

. .

INVENTORY BUYING
With

for the month ended Nov. 30,

published by the Treasury were

1944, and disclosed the

The Czarist dollar

ated by

ties,
i

undoubtedly prompted inquiries as to the latest
of these obligations. . . . The last fig¬

exempt issues, has

available data on the holders

Tele. NY 1-2660

Full text of Commercial and Financial Chronicle : February 22, 1945, Vol. 161, No. 4362, Section 1

FRASER