Full text of Commercial and Financial Chronicle : February 24, 1944, Vol. 159, No. 4258, Section 1

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EEB251944

Final

ESTABLISHED

Edition

Volume 159

New York, N.

Number 4258

McLaughlin Director
of Empire Trust Co.
i

Donald

President
de Pasco

elected

McLaughlin,
Director

and

APostwar

Vice-

Sometime

Brunie, Presi-

Handled by Our Grand Total Of Only 186 Airplanes
In 1943 Possible Only Because Of Intense Utilization

Special Executive of the New York Stock Exchange

By E. LEE TALMAN *
;

Geolo

Sciences
of the

c a

a n

and

ment of Geol¬

are

and Geog¬
raphy, Har¬

of ®—

some

these

Depart¬

dine* the same

evening in Los
Angeles, shall
week-end in

appointed

Professor of

state and fed¬

was

McLaughlin

Mining Engineering and Dean of
the College of Mining, University

eral

of California,

con

Dean of the College of Engineer¬
ing at the University of California,
with which the College of Mining
was united.
He resigned as Dean
in

July of "1943 to become'

Extended Into Post-War Period?

Europe

The "Chronicle" recently requested various personal¬
ities in government, business and financial circles to express
.;

their views

to whether the^—■

may

ibute

valuable

very

existing

price

control

time,
seems

but
to

asso¬

and
Dr. Ivan Wright

which

all other plans
will
be
sub¬

exijffessions'

given in the issue of Feb. 17,

fewer

Corp.

of Homestake

Speaker Rayburn

announced, at the opinions
in Chi¬
cago, that he intended to appoint symposium.
a
bi-partisan committee of the published in
conference

mayors

House to frame legislation for
OHIO SECURITIES section on
peacetime prosperity.
He
said
page 796.
that this committee would draw
SAVINGS AND LOAN ASSO¬
into one common pool informa¬
CIATION material on page 804.
tion on these vital post-war fac¬
For

Index

tors:
see

page

816
1. Conversion
speeds,
unem¬
ployment, and rate of reemploy¬
ment.

(Continued,

Underwriters

•

page

V5.;"

800)

sues.—

adduced by the

Others

will

subsequent is¬

Editor.

HON. ELMER THOMAS
U.

S. Senator from Oklahoma

Lee

Tolman

chase such

But air transportation is thrill¬
ing and exciting in a much more
important
sense — because
no

goods.

business

exceeds

ours

oppor-

In the event

*An

rationing and
price fixing
should be

by
Air

because of the

At-

multiplicity,
complex it y
and scope of
its problems.

goods

the

transportation
is exciting,too,

the

Co. and others.

take

steamer.

and
much
He is also a Director
/ \ i
starting on the first page of more mpney
Mining Co. During
b u y i 11 g
past five ^ears he has also sidiary, It seems, must be that Section 1," and.' we present 0 r
served as Consulting Geologist to plan or planning done by
the1
power
with
herewith another
these companies, San Luis Mining federal
group of which to purgovernment.
Recently,
per

than

lanti'c

A that when the
.aid, the really continued in peacetime.
imports ntI considerable number of the post-war pe¬
riod comes we
plan which
will dominate
> received
were will have still

ciated with Cerro de Pesco Cop¬

time

cross

or,

wish, we
may circle the
globe in less
we

now

that

beat

rationing measures should be

„
,
;11
.
1111—~
tell what conditions will
.

can

one

govern¬

ments

In 1942 he became

but you and I,

While

ind i vidua 1

time

New York and

plans and the
plans of or¬
ganization s
set up by the

that

<*>

■

of great

merit..

' ;

—1

exciting, because of the indi¬

undoubt¬

Univer¬
1941.

and continents in a matter of hours;

vidual perspective which flying brings to us all; exciting, too, because
it means that you and I, not our grandchildren or our children,
shall lunch in

edly

Thrilling,
and space;
exciting, because of the adventure of crossing oceans and deserts

plans

sity, from 1935

———

Air transportation is a thrilling and exciting business.
because it symbolizes man's continuing conquest of time
;

1 almost everyone has ideas on some plan. Some research has been done
d

ogy

vard

Equipment—Sees Expansion Of Industry Requiring
Capital Of $700,000,000 By 1954

New

Planning for the post-war economy is essential.
The shock of
Mr.
Mc - the many abrupt changes necessary in the transition from the war
to a peacetime economy may be lessened by such planning if this
Laughlin was
Chairman
of planning is done carefully and intelligently.
Never in the history
the Division of of this country before did we have so many planners.
Fortunately,
dent.

Air, Inc., Declares Enormous Volume Of Business

ern

Member, Economists' National Committee on Monetary Policy
Formerly Visiting Professor of Political Economy,
The University of Toronto

an-

Henry

Economy

Professor of Economics, Brooklyn College

nouncement

Copy

Executive Vice-President Of Transcontinental & West¬

By DR. IVAN WRIGHT

Copper Corp., has been
Director of Empire Trust
Co., according
to

Price 60 Cents

Y., Thursday, February 24, 1944

re-

linquished

the end of the

delivered

address

the

18th, anniversary dinner of the
New York Security Dealers Asso¬
ciation held on Feb. 17, 1944, at
Sen.

E. L.

Thomas

then the
-•; ■ u. •:
'
•:
With respect to extending price people would be able to bid for
the scarce articles which, would
fixing and rationing into post-war cause prices to rise abnormally;
hence, it is my opinion that both
period, of course at this time no
(Continued on page 810)
war,

the Waldorf-Astoria, New York.

(Continued

on page

794)

the chase

national bank

Distributors

Dealers

Bond Brokerage

VICTORY

OF THE CITY OF NEW YORK

Service
PROSPECTUS

Members New York Stock Exchange

R. H. Johnson & Co.

audi; other Exchanges

Established 1927

London

Geneva

.v;;

HAnover

2-OGOO

Chicago

INVESTMENT

Rep.

25 Broad St., New York 4, N. Y.
Teletype NY 1-210
Cleveland

INCORFORATI6

PHILADELPHIA
.Albany
Buffalo
Syracuse
Pittsburgh
Williamsport
Dallas

Troy

15 EXCHANGE PLACE
JERSEY CITY

MEMBERS NEW YORK STOCK

30 Broad St.

New York 4

Member Federal Deposit Insurance

LOS ANGELES

Tele. NY 1-733

Purolator

.7■

Corporation

New

thru finest contacts in

Products, Inc.

Over-The-Counter

Federal Machine and

England

Public Service Co.

Welder Co.

INCORPORATED

Security Dealers Ass'n

45 Nassau Street
Tel. REctor 2-3600

New York 5

Teletype N. Y. 1-576

Philadelphia Telephone:

Enterprise 6015

ALL ISSUES

International

Analysis upon Request

Detrola

Kobbe, Gearhart & Co.
Members

TELEPHONE-RECTOR 2-6300

634 SO. SPRING ST

facilities

Members New York Stock Exchange
York Curb Exchange

Members New

-|
always

EXCHANGE^

14 wall St., New York 5, N.Y.

correspondent

Hardy&Co.
Tel. DIgby 4-7800

Securities

Bull, holden & C°

from

HUGH W. LONG and COMPANY

BOSTON

Actual Trading Markets,

BROKERS

service with Chase

and Dealers

FROM

DEALERS

AUTHORIZED

SECURITIES

64 Wall Street, New York 5

|——

BOND

OBTAINED

MAY

Broaden your customer

for Banks, Brokers

Buy War Bonds
Hirsch, Lilienthal & Co.

Station

Cerro

In 2 Sections-Section

YEARS

100

OVER

Corp.

REYNOLDS & CO.
Members New York Stock Exchange

120

Broadway, New York 5, N. Y.
Telephone: REctor 2-7400
Bell Teletype NY 1-635

•

HART SMITH &C0.
Members

New York Security Dealers Assn.
52 WILLIAM ST., N. Y. 5

HAnover 2-0980

Bell Teletype NY 1-395

New York

Montreal

Toronto

IRA HAUPT & CO.
Members of

Principal Exchanges

III Broajway, N.
REctor 2-3100

Y. 6

Teletype NY 1-1920

THE

COMMERCIAL & FINANCIAL

in:

Trading Market*

We Maintain

P. R. Mallory

Active Markets in

bulolo gold

Common

U.S. FUNDS for

Members N. Y. Stock

Ass'n

Security Dealers

115

2-2772

PI., N.Y. 5 HA

Telephone

Co.

Exchange and Other Principal

BROADWAY
BArclay 7-0100v

Saltex Looms 6s,

Warren Bros. Class

Steiner, Rouse & Co

|VfcPONNELL&(b.

; v

New

Members New York Stock Exchange

25 Broad

Exchange

Consolidated Mach. Tool Units

Coal, Com. & Pfd.

11 In;;World: War illliii

NY 1-1557

NewOrleans, La.-Birmingham, Ala

120 BROADWAY, NEW YORK
Tel. REctor 2-7815

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

St., New York 4, N. Y.

HAnover 2-0700

York Stock Exchange

New York Curb

Exchanges

1954

Walworth Pfd.

Direct wires to

Inflation In Urban Land

Axton-Fisher Tob. A & B

Elk Horn

Birmingham Elec. 7%

Established 1920
York

Botany Pfd. & Common

Remington Arms

mines

Goodbody &
New

noranda mines

Laboratories

40 Exchange

Birmingham Elec. 6%

dredging

kerr addison

United Gas Improv.

Members

Cyanamid Pfd.

American

W. LMaxon

Dumont

Thursday, February 24; 1944

CHRONICLE

branch offices

our

DuMont
;

The, complete roster of members
Bond Committee

Laboratories

of the Municipal

Des Moines & So,

Fort Dodge,

,a';

Common

4's

Kearney & Trecker

Pittsburgh Hotel, 5's, '62 &

y67
V'

Members New York Stock Exchange
York Curb Exchange

<Y Members New

Teletype NY 1-1919

Broadway, N. Y. 5
WOrth 2-4230

120

Y. 1-1227

Teletype N.

Bell

WHitehall 4-8120

Broadway

Bell System

Stock Exchange

Members Baltimore

Public Service Corp
of New Jersey
'••

-■

-Thomas Graham

Kingsbury

*6% Perpetual Ctfs.

of} the National Security Traderr
Association is as follows,
sociation announces;
Thomas Graham,

Preferred

Bond
♦Traded

Curb Exchange

New York 5

System Teletype

Common

How Is Invasion

U.S. Realty, 6s

NEW YORK 5
HAnover 2-9470

Teletype NY 1-1140

1944

Missouri Pacific 4s,

A. Winga-

1975 ;
1949

Missouri' Pacific

5Vis, Serials

Missouri Pacific

E. Seifert,

Likely

sas

City,-Mo.

Mackubin, Legg

William Herzog,

To Affect The Market

Preferred

York Curb Exchange

WALL ST.

Minneapolis, Minn.; Russell
Stern Bros. & Co., Kan-,

Bank,

Indiana Limestone

Common

First National

Alfred N. Plumley,

Struthers Wells

York Curb Exchange

J. Van'

Raymond V. Condon, B.

& Co., Chicago.
111.; Edwin R. Foley, Kaiser & Co.,
Sari Francisco, Calif.; Jerry Glas,
Glas & Crane, New Orleans, La.

Electrochemical

1952

New

Frank C.Masterson & Co.

Ingen & Co., Chicago, 111.; Joe H.
Davis, First National Bank, Mem¬

NY 1-1548

phis, Tenn.; Lawrence

Income 6s,

Members New

der, John Nuveen

Hooker

Vice-Chairman.

COrtlandt 7-4070

Telephone
Bell

*Dealt

-'J.--;Wallace Kingsbury, Kings*;
bury & Alvis, New Orleans, La.,

York Curb Exchange

Nassau Street

The Broker?
Co., Louisville, Ky., Chair-,

man.

Vanderhoef & Robinson
Members New

the As¬

Baltimore, Md.; Malcolm F,(
Roberts,
Sidlo Simons, Roberts

& Co.,

W. E. Kpicker-;
&
Knicker¬

Co., Denver, Colo.;
bocker,
McClung

Members New York

Stock Exchange

Street, New York 5, N. Y.

63 Wall

VLHitehall 3-7253
Direct

Wires to

Philadelphia & Los Angeles

Texas; Andrew

bocker, • Houston,

Mills, Newhard, Cook & Co.;
St. Louis, Mo.; F. Monroe Alle-

New York 5
WHitehall 3-1223

20 Pine Street,

Telephone:

Teletype

Bell

man,

Leddy. Wheeler &

Seattle, Wash.
Thomas

Mont Laboratories

Mass.; Don Van

Products

Common & Pfd.

United

Piece

son,

•

Members

Bell

Teletypes—NY

5s,

.Co.,

Pa.;

Members New

York Security Dealers Assn,

120 Broadway, N.

Hanover 2-4850
1-1126 St 1127

York, N. Y.
Bros.,

Almstedt

Brooklyn Trust
Commercial Nat'l

Pacific

Water Service,

Pfd.

New York Water Service,

Pfd,

Public National

Prior

PITTSBURGH

•

Brook

Portland Electric Power

Issues

RAILWAYS COMPANY

Estimated net earnings
for 1943-after taxes
Present cash and

Preferred

Bonds

Selling

Troster,Currie & Summers
Simons, Linbarn & Co.

G.A.Saxton&Co., Inc
I

WHitehall 4-4970
5
Teletype NY 1-609

70 PINE ST.. N. Y.

N.. Y.

Members

Common

Trinity Place, N.

Teletype NY

Members New York Stock Exchange

25 Broad

St., New York 4, N. Y

HAnover 2-0600

Tele. NY 1-210

Private

Wires

Detroit

late

Security Dealers Ass'n

Y. 6 HA 2-2400
1-376-377

Buffalo

Pittsburgh

Successors

Robert

30 Pine

Cleveland

St. Louis

Mayer

& Co., Inc.

St., N. Y., DIgby

Bell Teletype
Member

New

York

4-7900

NY 1-1790

Security Dealers

T. J.

$4,500,000

...

13,503,000

under 60%

developments.

•

FEIBLEMAN & CO.

Members New

41 Broad

Orleans Stock

Exchange

New York 4
9-4433 Tele. NY 1-493

Street

BOwling Green

Ass'n

...

available on interesting

Information

1949

Utica, Chenango & Susquehanna

equivalent

Seaboard Air Line
5s,

Ky.;

Louisville,

Paul Bowden,

•

} -Scranton Spring

Common

Adj.

Y. 5, N, Y.

Teletype NY 1-2361

REctor 2-7634

Ball Coons & Co.,
Tackus, Putnam & Co., Hartford, Cleveland, Ohio; E. M. Hunt, First
Trust Company of Lincoln, Lin¬
Conn.;
Carr Payne, Commerce
Union
Bank,
Nashville. Tenn.; coln, Neb.; Joe Morris, The Rob¬
James
Ramsey Burkholder, : Jr., inson Humphrey Co., Atlanta, Ga.

Minneapolis & St. Louis

All

Ore,;

Rogers Ray, Rauscher, Pierce
Co. r Dallas,
Texas; Andrew

2000—Gold 52

Missouri

Haupt & Co., New

Chgo., Milw., St. Paul & Pacific
Adj.

Woll,

Chas. M. Ettinger, Halsey. Stuart & Co., De¬
troit, Mich.; Harry J. Peiser, Ira

Y. Security Dealers Assn.

St., N, Y. 5

Co., Boston.
Boskirk, Atkin¬

Jones & Co., Portland,w
Ergood, Yarnall &

Philadelphia,

Dye Works

Sreeue^iCompcmu
37 Wall

Kemp

Russell

Cum. Pfd.

6Vz%

Thomas

nati,; Ohio; Albert
Newton,- Abbe
&

Pfds.

Standard Coated

WITH

ON BONDS

Los Angeles.1 Calif.;. Harry
O'Brien. Katz & O'Brien, Cincin¬

England Public Service
Plain

Kemp,

BIDS

WE MAKE

& Co.,

Moxie, Com. & Pfd.
New

Co.. Or-;

Saunders, M. A.
Saunders & Co., Memphis, Tenn.;
Chas. W; Easter, Blyth & Co.,;
lando, Fla.; M. A.

1-1843

Volume 159

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4258

787

The COMMERCIAL and

FINANCIAL
J ;
Reg. U. S.

Patent Office

•-

William

B. Dana Company
V;.-Publishers

CITY OF

CHRONICLE
■

Rockwood & Co.

■

BEekman

;v:;.S

Stromberg-Carlson

'WilliamD.

Due August

3-3342

Welch Grape

Juice

Punta Alegre

Sugar

Seibert,'

Seihert,-President;, v

Riggs," Business

Manager'

every

(general

advertising issued

and every

New York IPhone

135

York Security Dealers

1943

Reentered

by
as

Bldg.,

CHICAGO 4

NEW YORK 4

\Harrison'2075

:
DIgby 4-8640
Teletype ny 1-832, 834

•—

;

Teletype CO 129

William

Dana

Sold

CERTIFICATES
Issued by

U Subscriptions
in United States and
Possessions, $26.00 per year; in Dominion

Co.

| Lawyers Mortgage

Canada, $27.50 per year; South and
America,
Spain,
Mexico
and
$29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.

Central

Cuba,

Y. Title & Mortgage

Co.

t h

WALNUT

Companies

yr.

pros¬

sift

Mewburger, Loeb & Co.
Members

40 Wall

foreign subscriptions and advertisements

the

Stock

order

Teletype

find

4-633011

tain to exist for

sands

the

1-2033

the

nug¬

of gold.
I do hope that

NASD 5% Rule Threat To Post-War

Employment And Small Business
(Dr. Lohman is Associate Professor of Economics at Miami Univer¬
sity, Oxford, Ohio.
At present, he is a contributing editor of
Time Magazine while on leave.
He is also connected with New
York University, and is a member of Economists' National Com¬
mittee on Monetary Policy—Editor.)
f

regards internal administration, the key notes in government
confusion, lack of coordination, and a colossal tendency to
drift by following the least line of resistance.
To be fair, one must
grant that a partial explanation of this phenomenon is the tremen¬
dous structural change which we experience in our social and eco¬
nomic environment. But the same characteristics of confusion, lack of
As

are

types of American business illus¬
trate

lack of coordination of

the

thousands of individuals who
otherwise

American

business.

paradoxically

complete agreement on funda¬

mobile industry says "no skin off

are

those who

necks." When the very exist¬
of the American capital mar¬

our

ket

ence

threatened,

the

believe in the

Bankers Association

spirit of free
private enter¬
prise.: I am
referring par¬
ticularly
t o
the
protest
lodged by the

the

vital

P. H.

upon

Lohman

in October, 1943, by the National
Association of Securities Dealers.

Maloney Act of 1938, which
the

NIRA

code

au¬

thority in the investment field by
creating the National Association

Dealers, clearly stipu¬

lates that "an association shall not
be registered as a national securi¬

association

unless it

to the Commission

the

appears

(SEC) that the

association

assure

if air representation of its members
in the adoption of any rule of the
association

the: selection

amendment

its

thereto,

officers .and

directors, and in all other phases
of

the

fairs."
in

administration
The

which

over

its

af¬

high-handed manner

the

and the

rule

lack of

was

any

put

repre¬

sentative character of the NASD's

governing board spell a clear-cut
violation of the intent of Congress.
This

of the association)

consensus

situation

and

similar

in¬

establishments.

they

in trouble, big business will
likewise suffer eventually.
It is the writer's intention here
are

ket

asked

disclosure rules.

But

of the problems

encountered
here immediately is a noticeable
one

lack of coordination among busi¬
ness as a whole.
Of course, busi¬
ness

does not constitute

group;
not
than farmers or labor

geneous

J. GOLDWATER & CO.

V INC.
Members New York Security Dealers Assn.

itself must

minimize

the problems
bond

Dr. Wm.

Edwards

in-

vestments, but with supply and
demand making long-term U. S.

*Du Mont Laboratories

given

mar¬

Mokan "A"

proper
*

a speech
de¬
William F. Ed¬

Dr.

wards, Economist for Naess &
Cummings, before the New York
Society of Security Analysts on
Feb. 14, 1944.
(Continued on page 806)

society

which

the

shall take

"market

J.F.Reilly&Co.
Members
New York

Ill

The Prudent-Man Rule

TRADING MARKETS

By RICHARD P. CHAPMAN*

Stromberg-Carlson

of finding suitable and productive investments for
trust funds under prevailing bewildering economic and political cir¬
The

stress

Gisholt Machine Co.

cumstances has quickened general interest in the prudent-man rule

practiced in Massachusetts and elsewhere. These current difficul¬
are too well known to need cataloging for this audience.
The
prudent-man rule, however, offers no ready-made solution to the
investment problems of a trustee,
'—
——:' '.
but Only an opportunity, and as in of our future social and economic
order..
every opportunity, there are risks
The trustee is held to a high
and obstacles to be overcome.
It
provides no easy tools, no clearly standard of conduct, but at the
marked highways, no fixed rules same time is offered a relatively
certain in their application. It does unfettered opportunity to do as
substitute a general and flexible good a job as the time permit. He
set
of
principles applicable to is placed on a footing with men
conditions of prudence and seasoned judg¬
changing investment
for the restrictive concept of either ment in the community, free to

Bartgis Brothers

ties

Haloid Co.
'JI'

legal investment list,
cousin, the narrowly inter¬
preted law, with its defensive,
Maginot line psychology and its
preoccupation with the past.
its

use

all

his

native

powers

over

century without

sion, inflation and deflation, and
there

seems

to presume

no reason

that it will not

adapt itself equally

higgling"

tive body, a sort of advisory coun¬
This- would, benefit business
cil.
page

f"\

SUGAR

SECURITIES
•

The, Massachusetts rule has en¬
dured for

170 Broadway
COrtlandt 7-6190
Bell System Teletype NY 1-84

inquiry and analysis and to apply
the results to the problems at
hand in the light of his accumu¬
lated experience. Thus he has the

Est. 1926

HiRZOB&lo.m

the statutory

*An

address

delivered

before

the American Bankers Association
Mid-Winter
the

Conference

Waldorf-Astoria

held

Feb.

1944.

10,
Mr. Chapman is Vice-Pres¬

ident

the

Merchants

Bank of Boston.

DUNNE & CO.
Members New York Security Dealers Assn.

National

Broad St., New York 4, N. Y.
Tel. WHitehall 3-0272

(Continued on page 812)

well to whatever is to be the form

Panama Coca-Cola

American Cable

$1 dividend

Pacific Qoait

814)

two
,

and Radio

paid January 15, 1944

SecuStUiei

Dividends
"

1943—-$4.50

Warrants

1942—- 3.65

Approximate selling price 32
•

Wyeth

Co.

'Since 1893'

HoiiRsse&Trsster
,

to act through a representa¬

Assn.

Broadway, New York* N. Y.

Investing Trust Funds Under

within

place.

country

Security Dealers

It would be advisable for busi¬
ness

Request

REctor 2-5288

understanding, and
should

Memo

Bell System Teletype, N. Y. 1-2480

that soon, as to what the frame of
our

Teletype NY 1-1203

Moxie Co.
investors,

summary

livered

any other

There is much friction
among
diverse business groups
and quite properly and necessar¬
ily so.< But business must come to
fundamental

Broadway

New York 6, N. Y.

Hflnover 2-8970

group.

QUOTED

Com,let. Statistical Information

homo¬

any
or

think-

I don't wish

SOLD

should we hold and
stocks; and if so, how

know that the action of the

is to stimulate

basic alteration, through war and
point to the long rangq effects
profit limitation and the bid reconstruction, boom and depres¬

and

common

sole

My
objective

sound

time after

some

aggressively?
Being practical

con¬

and, hence the
stances in the past involving other
(Continued

has

business in general in gen¬
particularly on the smaller

business

rules of

NASD profit
(to call it that is

rule

really a misnomer in as much as
it really does not represent the

Association against the 5% profit
limitation philosophy announced

ties

made later to

effect the

limitation

eral,

of Securities

American

does not bat

ad infinitum!

so on

Reference shall be

New York Se¬

resuscitated

And

eye.

curity Dealers

The

are

enough

mental policies. When public util¬
ities are in difficulties, the auto¬

present,

fighting
the
good fight for
all

buy

<$-

coordination,
efforts, and
drifting apply
unfortunately

BOUGHT

war,

fusion:

By PHILIPP II. LOIIMAN, Ph.D.

certificates

discussion are,

not add¬

ing to the

men

WHitehall 4-6552

title company

the bond investment
problem is largely one of account
requirements and individual se¬
curities.
The questions for this

gets

Exchange

WHitehall

St., N.Y. 5

Bell

funds.

New York

York

New

handful

Street, New York

Telephone:

F. EDWARDS*

fractionally
above par, and the U. S. Treasury
pegging the bonds at a minimum
of par, a condition I believe cer¬

NOTE—On account of the fluctuations

99 WaU

Pennypacker 0300

Governments sell only

pectors had to

Monthly Earnings Record—Mth.. .$20

Philadelphia Phone

available

the: old

Bought—-Sold—Quoted

In the rate of exchange, remittances for

STREET

sift

must
e

carefully

All local Title

Other Publications

today

red cross

information

Bank and Quotation Record—Mth. $20 yr.

feeling of deep responsibility in presenting a discussion
of the outlook for securities at this particular time.
We are on the
threshold of a momentous year.
There is much to be concerned
about in handling investments, ana the responsibility of those who
help supervise the investment of other people's money is great. The
times are confusing.
The news and public statements are confusing.

second-class matter Feb¬

made

red cross

Give Blood To The

Quoted

—

PHILADELPHIA 2

: By DR. WILLIAM

I have

MORTGAGE

Company

8, 1879,

Money To The

I, 1968

ruary 25, 1942, at the post office at New
York, N, Y„ under the Act of March

must

Give

If How Aggressive Should Our
Investment Policy Be At This Time?

Aso'n

Board of Trade

Broadway

Smith.

Due August

1628

•.

REctpr 2-0790

STRAUSS BROS.
Members New

Salle. St.,
Chicago 3, 111. (Telephone; State 0613),
in.
charge of Fred H. Gray, Western
Representative; < 1
Drapers'
Gardens^
London, E. C., England, c/o Edwards &
Offices:

1, 1973

Monday

(complete statistical issue-—market quo¬
tation
records;
corporation,
banking,
clearings, state and city news, etc,)
Other;

AND COMPANY

Yarxall & Go.

Vertientes Camag'y

Thursday

and

news

Haytian Corp.

week

»LiCHTinsifin

COMMONWEALTH OF PENNSYLVANIA
TURNPIKE REVENUE 3%% BONDS

Bought

Thursday, February 24, 1944

Published twice

PHILADELPHIA BONDS

Jan. I, 1975 62and Jan. 1, 1975/65

REFUNDING BRIDGE 2.70% BONDS

Editor and Publisher

William' Dana

;

DELAWARE RIVER JOINT COMMISSION

Spruce Street, New York 8

Herbert XL

NEW YORK

LOS ANGELES

Members
74

Members Los Angeles

Stock Exchange

Established 1914
N.

y.;1 Security Dealers Assn.

Trinity Pl^e, New York 6, N. Y.
Telephone:

BOwling Green~9-7400 '"

Teletype:
NY

1-375

C.E. Unterberg&Co.
Members New York Security Dealers Assn.

Broadway, New York 6, N. Y.

Telephone BOwling Green 9-3565
Teletype NY 1-1666

;

W
.:

788

^•■••;:-'V>:':v^'?'-:''v ■'-S' /''■' /■'

/'/-"ft";. •"'■ ■''•7/. .'■••.•-"'

//:;/ -VV:k^'\;^:v,>
■■■':" :.~v:'
■ V ■/
/' :'..•■••■;:' '"••/.'■v•' •' ■•'/// *4/ /■•'"•//'I ■/.-■•.-■//;.

'■/■ •■/•■■ -

FINANCIAL CHRONICLE

THE COMMERCIAL &

/, ■,.■■■;;'.■■

vv^v:: ^' --■W"f' -1 v
.../'-■-/•/

-Thursday, February 24,-1944

-•

BOSTON

interested in offerings of

We are

Please Note

High Grade

Ward & Co.

Public Utility
ACTUAL TRADING

and Industrial

Radio

25 Broad Street,

Distilling

'•

*CroweIl Collier Pub.

J> ' \

United

'•

Bought

General Instrument

115

Worsted "A" and Pfd.
Southwest Lumber Mills

Co.

Members New York Security

BROADWAY

.115

PHILADELPHIA

CHICAGO

Bell System

BOUGHT

SOLD

Be Formed In

Elastic Stop

! 1/

Airlines

Export

Common

Company

Deerfield Packing

Car

Remington Arms

Nut Corp. of America

Corp.

Foote Bros. Gear &

Magazine Repeating Razor
American Industries

Machine Corp.

Hart Carter Company

Loft Candy

Hart Carter Company

Majestic Radio,
•Mid-Continent Airlines

Publishers, Inc.

nited Printers &

National Airlines
Northeast Airlines

Petroleum Heat & Power

Chicago

ILL-^illiain

in the new firm

Warner & Swasey

ST. LOUIS

LONG BELL

LUMBER

will

SOLD

BOUGHT

—

QUOTED

previously with 'Blair, Bonner
and Lee H. O^trander, for¬
merly .with Graham,; Parsons &

all

& Co.,

Co. in Chicago.

Wlason, Tcnenbaum, lac.

803"

Common

Landreth Bldg.'

ST. LOUIS

P. 0, iohrman Wi

«»qqMESNYi

•.

Lewis

PH 265

be Mr; Blair, Wallace Mi "FloWer;
Don G. Miehls, Daniel J. Ritter,

Common
Preferred
Common

Aircraft
United Cigar Whelan
Vicana Sugai"

—

N. Y. WH 3-7253

Mc-

Rohr

Giddings &

St., / Philadelphia 2, Pa.

Phila. RIT 4488

bership of Percy D.^Lown and will
form the Exchange firm oF Wil¬
liam Blair & Co. with "officesrat"
135 South La Salle St. on'March 2.;

Preferred

Inc.
Company of Iowa

United Printers & Publishers,

Northrop Aircraft

Philadelphia Stock Exchange
York Stock Exchange

Bell Teletype

Blair will acquire the
Stock Exchange mem¬

Partners

Members New

New York

/Common

Gisholt Machine Company

& Co.

•Kellett Aircraft

CHICAGO,

Cormick
.

Common
-Preferred

& Machine Corp.

Foote Bros. Gear

Common

request

BUCKLEY BROTHERS
Members

Teletype N Y .1-1493

1529 Walnut

QUOTED

Broadway

Telephone BArclay 7-0700

.•

■

Common

Dealers Assn.

Vim. Blair & Bo, To

Pfd.

Aircraft "

Common

maintain'markets in:

Delaware Power & Light

TELETYPE NY 1-672

7-0100

—

...

NEW YORK 6

South Shore Oil

i
—

•

*Memo

/0\

Explosives

Lanova Corp.

Bristol & Willett

Pollak Manufacturing

Hoe

:::

"Southwestern Public Service

Principal Exchanges
105 WEST ADAMS ST.

TELEPHONE BARCLAY

Derby Gas & Electric Common

Sold - Quoted

NEW YORK

Botany

Stock Exchange and Other

Members N. Y.

•

■"Great

Bank Building

BOSTON 9, MASS. '
Capitol 4330'v :
Teletype BS 424
;

Established 1920

Maryland Casualty0i
*Long Bell Lumber
Southwest Lumber Mills

American

Homsey Co.

Shawmut

^,"V.$V *■'**

Goodbody &

'"Hartford Empire Co.

.Eastern

du Pont,

/•'"■ \v/'•fit*'j*: y

Peoples Light & Power Pfd.

Aeronca

•

Railways (w.i.)
&

Light

Mallory
Consolidated Textile

Auto

V*"-V

Crowell-Collier Pub. Co.

P. R.

Hearst

;*.

...

Merchants

Triumph

It'r.i'!•'

Dun & Bradstreet, IncI

"A"

*Du Mont Laboratories

•

Singer Manufacturing Co.

Nut Com. & Pfd.

Mokan "A"
'

*•

Pfd.

Moxie Com. &

Elastic Stop

United Elastic Corporation

.United Stockyards Preferred

Johnson & Johnson Pfd.

;

>■:

Remington Arms Co.

;

i"':•'/01->?.*» • , '
y•
v."* *
*V-*'•. • v1

Teletype NY X-5;

York Stock Exchange

Members New

New Yprk \v

2-4300

Telephone HAnover

Alegre Sugar
Vertientes Camaguoy Sugar
Punta

Corning Glass Works

Spencer Trask & Co.

Wickwire Spencer

Bird & Son

Tiffany & Co.

MARKETS

Emerson

Art Metal Construction
«,,•!

Christiana Securities Co.

PREFERRED STOCKS

Stromberg Carlson

Specialty of

Dealing in

That

Your Records

Make

2/ MO.

:TeldtyRe-—SL 480I>, '240

Ei F. Hullon & Bo.z i i

Incorporated

Bendix Home Appliances

Haloid
•Richardson

Milwaukee

Boston

New York

Chicago

•Doyle Machine Tool
•
Metal & Thermit

Harvill Corp.

Announced

Tokheim Oil

Tank & Pump

Consolidated

Dearborn
& Cable

Radio

Amer.

Shares Confined To

War.

Life Ins. Cos.
Pac. 4s, 5%s, 5V2S

Missouri

Central Rv R* of N:. J. 4s, 5s
Frisco

4y2s, 5s

4s,

Chicago, N. W. 4%s
41/2S, 5s

Baltimore & Ohio

4*4 s

Morris .& Essex

Arr. and Com.

Illinois Power Div.

""Central Electric

Conn.

Light & Power

Pfd.

Utility Service Pfd.

Queensboro Gas & Elec. Pfd.
Puget Sound Pr. & Lt.
♦Mass. Power & Lt. $2 Pfd.
& Rys. W. I. *

United Lt.

•

Inland Power & Light 6s

Washington G. & E. 6s

</',

1960

5%s

Central Public Utilities

Associated Gas & Elec. Issues
Commercial

Phone

Mach.

All Issues
4s

Wts.

wire orders at our

Circular

120 Broadway,

Request

Security Dealers Assn.

Established 1926

N. Y.

REctor 2-8700

Teletype NY 1-1288

—

HARTFORD

the

But it also

return.

acts

safeguard by confining

inferior

issues

primarily

speculative character.
While in¬
come is an important investment

—

PHILA.

York City,

estimated at

about.4%.

5% of the assets
Bond Shares may
be invested at any time in the
bonds of a' single issuer except for
Not more than

issues guaranteed by.
the
United
States Government
Investors may join the group at
of,

SAINT LOUiS
•

associated with the wellknown analyst, the late Mr. John
W. Pope, after which he joined
the Trust Investment Department
of the Guaranty Trust Company.
Later, he became a partner in
own
Stock
Exchange
firm

Board./ He; begins his ,new

duties March

1, 1944.

time by purchasing the sharer
at
the "current
offering price
which is based
on the rmarket

Stock Exchange

Schluter & Go. Now
F. H. Koller & Co.

Atlanta Bond Olub

Schluter & Co., Inc.,

Ill Broad¬

New York City, established
1925, announces that the firm

way,

Elects New Officsrs

name

annual
of the Atlanta Bond Club

ATLANTA, GA.—At the
meeting
held

any

price of the investments, and may
withdraw at any time by redeem¬

''
Tetetype—SL 80

509 OUVE ST.

Members St. Louis

of
Biggs, Mohrman & Co. More re¬
cently, he has been doing war
work for the NavybPrice Adjust¬
ment

;

Bell System

his

;

of Institutional

issues

StI>{ §r

Feb. 17 atthe

Club

member

Neal

Capital City

Atlanta, J. R.
of the firm of

Waggoner,

was

Neal, a
Wyatt,
elected

President; Byron Brooke, a mem¬
ber of the firm of Brooke, Tindall

has

been changed to

Koller & Co.,
'/

F. H.

Inc.

Since 1927 Mr.

Koller has been

ing in

firm specializ¬
industrial securities.
' *

RR.

Situation

connected with the

The current

Of Interest

situation in Chicago

ing their shares at approximate
& Co., was elected Vice-President, Rock Island offers interesting pos¬
net asset value. " r. •
' ■
management
and J. F. Settle, President of J. H. sibilities, according to a circular
Institutional Bond Shares in¬
of Institutional Bond Shares, the
Hilsman & Co., Inc., was elected being distributed by Sutro Bros. &
creases to 21 the number of classes
primary objective is preservation
Co.,
120 Broadway, New York
Secretary & Treasurer.
3.
of Group Securities, Inc., having
of
principal.
Profits resulting
City, members of the New York
assets in
excess
of (t
from changes in investments are aggregate
Stock Exchange. , Copies of this
Duke" Hunter a Grandpa circular may be had upon request
not an objective, but are consid¬ $21,000,000^
vestments of more than 11,000
ered a by-product of sound in¬
'
1
Wellington (Duke) .Hunter, of from Sutro Bros. & Co.

consideration in the

When realized
paid out as extra

policy.

vestment
may

Institutional Bond Shares

is de¬

signed primarily to meet the in¬
vestment requirements of corpo¬
ration
reserve
funds,
emnlove°
benefit

trusts,

lodges,

schools

churches, unrestricted trust funds
and the "reserve" investments of
individuals.

Direct Wires to
BOSTON

companies
announcement
"necessarily restricts the

banks,"

dividends."

Wakd&CoI!
Members N. Y.

of the invest¬

supervision

selec¬
tions to bonds of approved invest¬
ment quality and by excluding

they

'/expense
*

investment return is

York.

ments of life insurance

as a

Indiana Limestone 6/52

Chicago Tractions,

Incorporated, 63 Wall St., New

"Compliance with these con¬
restrictions, which are
the reflection of many years of

income

Suffolk, Ltg. Pfd.

Nassau &

For

York State

Class of Group

in the State of New

states,

Util. Com.

Iowa Southern

new

ap¬

ago was

Securities, Inc., known as Institu¬
tional Bond Shares, with an initial authorized capitalization of 575,000 shares.
The new shares are unique in the mutual fund field in
that investments of Institutional Bond Shares are confined to bonds
which meet the legal requirements for investment by life insurance
companies, or by savings banks,«>•

and

& Gas Pfd.

Elec.

Distributors Group,
announce

State

Transit

American

Bonds Meeting Requirements

And Banks In New

servative

& 7%

Serv. 6%

Pub.

Syracuse
Cons.

Tel.

Pub. Serv.

Southwest

|utual Trust,
By listrihutors Group

Institutional Bond Shares, Rew

A. E. Staley ■■
Auto Ordnance

has been

Manager of the Invest¬
ment
Research
Department of
E. F. Hutton & Co., members of
the New York Stock Exchange,
in the main office at 61 Broadway,
New York.
Mr. Mohrman years

pointed

*Haskelite

Mohrman

Minneapolis

The

initial offering

price of Institutional Bond Shares
is $10 per

share, and the net true

shareholders.

'•

York

Paine, Webber Opens H
Second

Street, have opened-a
branch off{oe in the Merchandise
Mart Building, mam lobby, under
the
of Hayes O'Brien
.

r.ille

and Wesley Blom,

while

attending the

Travelers From Afar

Pacific Coast visitors X
attending the dinner of the. New
'

annual

son;

CHICAGO,

Lr»

Feb., 17

dinner

of the New

York

Security Traders Association.. A

Cgo

ILL.—Paine,' Webbp-v >T°cksoh & -Curtis,' 209 South
•

42 Broadway, New
City, became a grandfather

Hunter & Co.,

Harold Leroy Snyder 2d, was
Hunter's only daugh¬

born to Mr.
ter

Hospital.
The
wounded
Pearl Harbor on Dec. 7, 1941.
at

father
at

Brooklyn

of the baby was

Mr. .Hunter

the

father

York

Security Dealers

Association

Morton Seidel of Morton
Seidel & Co., Los Aneeles; Robert
T. Cass and Forest W. Shipley of

were:

Quincy Cass

Associates, Los An¬

geles; and Huber J. Soher, partner
of H. R, Baker & Co.,- San Fran¬

and at nresent has four 1
serving in the Marine Corps, cisco, Calif.

seven,
sons

Among

Volume

159

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4258

789

i
f

American

Executive
Man 47 years of age, 18 years'
financial background, last seven
at

years

connection

present

Export Airlines

Mid-Continent Airlines
Established

past

and

Preferred

''/[

proprietor, desires position

with

two

Bank

house in

years

Stock

partner

Exchange

Commercial & Financial

inc.

;111

Assn.

Trinity Place, New York 6, N. Y.

Green 9-7400

•

continuing business

Cashier Available
38 /yearsin

Experienced in Outgoing and-

Incoming J3!eHyeries.
Transfers*: v.s(
-

Justice

Robert .H.,

■

country would;

;Write Box B 1, Commewal ;&

PEND OREILLE
PRESTON EAST DOME

Barkley Resigns As Senate Democratic Leader
In Protest Against Roosevelt Veto Of Tax Bill

Jackson

doubt that this

swing to extremes

assault upon the

ington,

Press

Toronto,

"-dispatch from
Feb.: 19, which con¬

tinued:
"We

United

the

States

period'
Street.; Attention N. Y. Stock;,

Canadian Bar Association,

dis¬

banks,

perience
tact

above draft age.
dence invited.

will override this veto

this tax bill into law.""

Box S 8, The

Chronicle, 25 Spruce St., New

tivist state.
cessions

York 8, N. Y.

this drift,

divisions

Security Executive

direction-

much

in all departments

of the se¬
curity business, including the
I merchandising of securities,
would like to negotiate with
a
Stock Exchange member
firm

relative

branch

office

opening

North-Central

Pennsylvania.

movement

New York, N. Y.

that

extreme

proletariat,

the

Industry

doubted,
as

and

which

way

move¬

may

1942.

•

This

:V.

people

•the American

and

■■■I Copies
.quest

Chase

; '

New York City.
11 j *

National

corner

of Nas¬

;

S. S.

Anna

in McGough

Broadway,

New

York

City, members of the New

York

Stock

2nd.

Exchange,
-

Wells

has

become

with R. L. Day &

associated

Company,

mem¬

New York Stock Ex¬

change, in their New Haven office

McGough will be ad¬

Schuman,' 50

March

215 Church Street.

was

Mr.

Wells

formerly in the Bond

ment

Depart¬
of Stillman, Maynard & Co.,

and for* manv: years was in charge
of
the Trading Department for

Maynard. pakley & Lawrence in
New York City.

Ohio Match

con¬

for

10:30

his

that

would
A

denouncing

the

take

President's

Frederic H. Hatch & Co]

he shouted that

"the first time

was

Universal Match

and

a successor

resignation

tax veto message,

Penn. Bankshares & Sec. Pfd.

tomorrow

a.m.,

(Feb. 24) to select

during

Incorporated
63 Wall

Street

Bell

long service, which I had thought

New York 5, N. Y.i 5-

Teletype NY

' j

1-897

honorable, that I have been

was

accused

voting for

bill that

would extend relief to the

greedy

impoverish the ^leedy."

BUY

BONDS
WITH

Coupons Missing

Security Dealers Asso¬
1,000 members and guests, in¬

GUDE, WlNMILt & Co.
Members New York Stock Exchange

decade."

recently
returned from
Perry E. Hall, partner
Morgan Stanley & Co. and

co-Chairman

the

Finance

Teletype NY 1-955

Di¬

Cross;

Commander

Harp, U. S. N., who served aboard

units

should

missioning in October, 1941, to its
sinking.
> <r

exist.

recognize

certain

functions

continue

that

the

American

Red

Edward

the U. S. S. Hornet from its

com¬

Missouri-Kansas

there

where

Pipe Line Co.

size

prerequisite— Reese to Discuss
Underwriting for instance—but we
Farm Credit on Feb. 25
are just as insistent that there are
"The Successful Use of^Farm.
areas whence, from the standpoint
of-the public good, we should not Credit" will be discussed by Ev¬
be
excluded and in which our erett D. Reese, President of the
Park National Bank of Newark,
activities should not be circum¬
and

capital

functions

are

that of primary mar¬

intimate customer
relationship."
'u
' ,v
.In spite of the lip service "that
has been given to the^need of
maintaining the place of the little
fellow in business," ' Mr. Dunne
stated, "his condition, in the overthe-counter industry particularly,
,

St., New York 5, N. Y,

DIgby 4-7060

overseas;

in the New York Se¬

1 Wall

Army,

vision

are

recon¬

Weiisiora With J

Lawrence Portland Cement

the

small

falling

bers of the

mitted to partnership

ket making and

of adjustment and

NEW HAVEN, CONN.—Sheldon

than

burden

Admit

scribed by unnecessary artificiali¬
ties, v I.refer to such time-honored

McGough and Schuman

has been in the 'dog

keeping
struggles for power from "getting
out
of legal
bounds," with the

Day In New Haven Y

,wmmWttmtmn

ity

by more than

composed principally
of small units, maintain that, from
the standpoint of public policy,

funda¬

primarily upon
legislators and executives, he said.

Engineers in
February 24th. • : v \
may be had upon re-'
the

announced
Senate that he had called

association

stitutions may depend on

from

Barkley

Dealers Association," Mr.
Dunne declared, "which is a trade

security of democratic in¬

ciliation

Institute of Mining

Bank, Pine Street
k ./;•

The

Metallurgical

New York

sau,

Division

as
to the
very
mentals of organized life."

sense

"Now

entitled, "Sources,
Disposition, and Characteristics of
the Capital Employed by Thirty
Oil Companies During the Nine-Year Period, 1934-1942," will be
presented by Mr. Pogue as a paper
Petroleum

Congress is justi¬
apology for that."

curity

study,

before the

Cyanamid, Pfd.

atttended

was

house' for

charge

consideration of the utmost im-<^-

larger

bank's

Mr.

and

portance, since Wall Street "in the

if so, any estimate
extreme might pre¬

Toronto

Pogue, move farther ltd the right, and that
been
of the those who -have
looking
Department of Petroleum hopefully toffhe left will go far¬
ther to the left.
If this transEconomics,
and
Frederick
G.
Coqueron, staff associate, covers spires, it makes wider and sharp¬
the nine-year period,: 1934 through er and deeper division among our
Joseph

sent

I make

cluding representatives of the New York Stock Exchange, banking,
industry and theiSecurities and Exchange Commission.
:
1
Frank Dunne, President of the Association; welcomed those
attending, and in his speech urged "unity in the securities industry,"

Chase'National

Vice-President

has

The 18th annual dinner of the New York

prepared

be¬
tax

ciation

Bank has vail would hardly rise above a
J \
37-page survey of the fi¬ guess," he added.
"But
it
idoes
seem
to
nancial and operating aspects of
me
30 major companies in the Ameri¬ probable that;those who have been
inclined
toward ; the
can petroleum industry. The study,
right will
The

•

Eastern Sugar Associates, Com.

Security Dealers Asi'n Holds
Annual Dinner—Attended By More Than 1,000

either

balance

1-395

Montreal

American

believe that the veto

effect at that time.

Surveyed By Chase Bank
issued

enact

- •

deliberately ■; sought to
little Congress through the

in Russia, or those
of a military-industrialist class, as
in Germany and Italy."
"Whether enough of our people
will give way to extremes to carry

Chronicle, 25 Spruce St.,

Amer. Petroleum

;

either way "would utilize
existing centralization and social¬
ization and vastly extend it either
to serve the supposed interests of

The Commercial & Financial

,<■

and

House,- standing along the
wall, joined in.
Senator Barkley said Mr. Roose¬

ment

Box S 10

our

Congress of the United
any self-respect left it

velt

to the

now

ference of the Democratic major¬

rear

heated

longer

to its

mented

■

our

HAnover 2-0980

advices from Wash¬

New York

the

serve

counties

his col¬

the

those who

bill.
pace."
\
Many persons, Justice Jackson
said, have voiced fears or hopes
that the post-war world wili move
rapidly and sharply either to the
right or to the left, and he com¬

experience

years

are

do I

nor

thought by some to be
defense against such ex¬
are

Heavy ; applause
roared
out
through the historic chamber as
Senator
Barkley
concluded his
speech. : Scores ^ of members of

say

are

the best
resist

"If the

becoming a collecIndeed, moderate con¬

tremes. While there

the

harmony with the

he turned
leagues: and said: - A ;

are

closest

President,

"This, of course, is not to
that

the

States has

Commercial & Financial

With

collective interests at the expense

Correspon¬

St., N. Y. 5

Now York

bill," he declared. "I not only ad¬
vised him not to veto it, I im¬
plored him. I did not then believe,

leadership he has held since 1937 fied.

work— ^

portfolio

As the Kentuckian gave up

of individual interests.

Ex¬

trading, con-;

covers

and

declared; "I do not
take this unjustifiable
assault- lying down.'' ;; <■.

when

ing small N. Y. office.

propose to

always extends to the law
organized society itself is in
a- period
of transition.
The
movement today / almost univer¬
sally: is-toward advancement of

of-tovvn firms desirous open¬

Press

WILLIAM

Bell Teletype NY

member of the Legis¬

every

Associated

please,"

"Itnis the kind of unsettlement

that

States."

"Other members may do as they

are

what many call „.a
of confusion in the law,"

he: .tplddhe ,annual meeting of the

tributing dealers — also out- *

HART SMITH & CO.

giveh in the New York^
"Sun" reporting this, also had the
I am one of those who pleaded
with the President not to veto this
following to say in part:

experiencing

Exchange firms,

honesty and integrity of

lature of the-United

Associated

St., Niew York 7; N. Y.

VENTURES

was-tendered yesterday

of right or left, it was said in an

Financial Chronicle, 25 Spruce

UPPER CANADA

^ ^Thenreslgnation of his post as Democratic leader of the Senate
(Feb. 23) by Senator Alben W. Barkley of
Kentucky in-protest, against President Roosevelt's veto of the tax
bill, which; the Senator denounced as a "deliberate and calculated

that "the world is in for yery ex¬
tensive .change# and renovation,"

vbut he expressed
1

KERR ADDISON
NORANDA MINES

of
the United States Supreme Court
predicted, in Toronto, on Feb. 19

; v

FALCONBRIDGE NICKEL

heretofore

Changes In

Justice Jackson

Wall Street with but 2 houses.-

Position Record.

CONSOL. MINING & SMELT.

World Predicted By

"March 1st
for

BULOLO GOLD DREDGING

.Teletype NY 11026

February 21, 1944

Extensive

HURIONIAN

AUNOR GOLD

Broadway, New York 6, N. Y.

BArclay, 7-0570

Teletype:
NY 1-375

deplume;

30wling

Cashiering

ANGLO

Company

1914

Y. Security Dealers

Members W.

Box E-l. :

Canadian Mining Stocks

name to

Established

Chron¬

icle, 25 Spruce St., New York 8,
N. Y.

■'

the change in

announces

F. h. Koller

HoixRsseSTrsster

trading capacity. The

1925

Penri-Central Airlines i;

over-the-counter security house,
the

SCHLUTER & COMPANY, INC.

National Airlines

has " worsened."

with-

concluded

Ohio, in
casts

one

Bank

i.KJUce,Jr.&Co
Established 1908

series of broad¬

sponsored

Reserve

the

Members N„

REctor

Federal

Cleveland

over

President

last

will

the

Association. A

Bankers

His

feature

Farm

and

year

the

Home

Ohio State

the

was

y'*•••■A";

•

/■:y

speakers -were E. Lee
Talman, Executive Vice-President
of; Transcontinental & Western
Air, Inc.; Herbert Allen of Allen Sk
Co.; Lt. Jack M. Smith,-. U. S.

Broadway

regular

Ohio
talk

Ohio

Trading Markets J

Hour conducted

by the College of Agriculture of

Gardner

public and all segments of the

Security Dealers Assn.

Teletype N. Y. 1-114

WOSU, Columbus (820 on
the dial), from 12 to
12:30, noon,
Friday, Feb. 25.
Mr. Reese was

University.

INDUSTRIAL

appeal that "in formulat¬

industry."

2-4500—120

Bell System

Station

ing policies and practices on the
problems of the securities busi¬
ness, the approach be made under
the framework of what is good for

Other

Common Stock

Stanley Killed in Crash
Lt.

Arthur

Stanley*

killed in the crash of

motored

brook,

Army
N.

formerly
sell

ISSUES

281

Road, Ridgewood, N. J,,

bomber
/

Lt.

four-

Mill-

Stanley

was

trader for Laird, Bis-

Meeds,

New

Exchange 'firm.
..j inuirif.pdp'--.
.o<l* p'.iOt''

York

Btoadwoy, New York 5, N. Y. Y

;COrilan<li;7-^4bo

Stock

,"
•

•

Teletype NY 1-1950

THE COMMERCIAL &

dent

TWA;

man

SEC.

Left to Right: Chester E. de Willer.s, C.> E. de Willers
& Co.; James J. Caffrey, N. Y. Regional Director,;;SEC;
Ganson Purcell, Chair- Phillip C. Kullman. Jr., John J. O'Kane, Jr., & . Co.;
'*
■
■ Abraham M. Metz, Edward A. Kole;;E.: A. Moree. V
'V

E. Lee Talman, Executive Vice-PresiPerry E. Hall, Morgan Stanley & Co.;

Dunne & Co.; Hon.

Frank Dunne,
-

such

Left to Right:

C.,E. Unterberg, C. E.

Unterberg & Co.J

Currie & Summers; Her¬
bert Allen, Allen & Co.; Otto H. Steindecker, New York
Hanseatic Corp.; John J.;, O'Kane, Jr., John J. O'Kane,
Jr., & Co.; Frank Dunne, Dunne & Co..? « " J
V'
Col. Oliver J.

Troster, Troster,

d£j£

henceforth regard the

OUR

Annual Dinner

Security Dealers Assfh 18th

Mew Yoirk

Left to Right:

Thursday, February 24, 1944

FINANCIAL CHRONICLE

clause

violation

the

inclusion of

contracts
Sherman

Anti-

The

spread between tjie.

York-State

New

high-;J

Housing

7;|;Bi^G'e%8E"G Approval

loan

will be distributed to a number I Another;,?; small
utility v: issue
received
of... municipalities, including -New rrioved nearer to,^market when the
was not especially marked, in¬
York
City,
Schenectady
and SEC; apprOved;;iyesterday accep¬
dicating that bankers were pretty:;
Niagara Falls, it was explained, to tance by: Northern States Power
much in agreement as regards
Co. (Minn^)VOf:..a bid of 100.0699
what the market will ; take at | anticipate the needs of: such local
est and lowest tenders

■

REPORTER'S

Trust Law.,

In consequence, it is
in

that

REPORT

of the $16,500,000
bonds of the Flor¬
Corp., sold by the

Public offering
first mortgage

Power

ida

lively

company

competitive

bidding yesterday, will be under¬
taken under a new form of syndi¬

agreement among the under¬
writers and their distributors.
cate

This piece

of business will be

brought to market without ben¬
efit

the

usual

long-standing

"price maintenance

clause"

which has been included in un¬

"■

the

managers,

eliminate

expected

syndicate
they do not

future

where
such provisions

en¬

in
their
underwriting
agreements, will at least dras¬

tirely

modify the contents of
any
part of their agreements
touching on price maintenance.
tically

Just

now

the action of the De¬

of Justice should not
prove a serious impediment to the
marketing of new issues, since the
market is very largely a "sellers'"
affair.
But perhaps at a
later
date, when the market is less re¬
ceptive, it may have repercussions.

partment

agreements over a
long period of years.
It's pur-

made by';#n,;underwriting group
•; • /0'
for $5,000,009 principal amount of
winning bid was- 103.7799
Listed, Market Quieter r\ ' the company's-2%% : first mort¬
for the issue as 3%, or a cost basis
••:<
?v; Whether- on not the Bresidential gage bonds.' ~'■ / . .*
of 3.18%, while the lowest tender
The. issue^ due
1974,:'will be
jvetp: of; the new- reyehue'bilL;was:
set a price of 105.10398 for a 3xk¥c
a
factor, activity in the seasoned priced at 101.vfor offering to the
coupon,
figuring a net cost of bond market tapered considerably
general public^? The company, it.
3.23%.
thi$ week from its recent pace. " was disclosed,' received a total of
'^ Presumably the holiday inter¬ six bids for. the bonds.
V Municipals Picking Up
ruption to trading was a factor.
The municipal market received
And the market; especially among
another fillip with the, announce¬
the medium and
lower quality

the,, moment.'"''

!
,

as becomes readily-apparent, has been to aid in as¬

pose,

suring

ordering

securities

distribution

involved

during

the

early stages of the operation.

The

Florida

Series of

Power

Bids

ment

Corp.'s

is¬

which is expected to be of¬
fered before the end of the week,
depending,

of course,

Comptroller Moore that
York plans the

cus¬

had

The current week has been one

at which many
active traders
were
inclined - to
hesitate and take stock of the
Situation.
•
•:

the

reached

$8,330,000 housing, bonds

point

the

busiest

•

recently

for

municipal men, bringing out a. quarters that should the Congress
$17,496,000 in new issues,, sustain the President's veto of
quite close to the week average the tax bill and undertake to re¬

total of

$19,314,330.
Los Angeles de¬
partment of water and power was
due
to
receive
bids today for

Exchange

Weekly Firm Changes

;

Stock Exchange
announced the following firm

The New York

March 1. '

has

■!'*

changes:
Byrne E.

Baldwin retired from

partnership in Hayden, Stone &
Co. on. February 10th.
:
:;
,

of the
Exchange, will retire from oartnecessity have to revise certain
nership in Doolittle, Schoellkopf

write

the

measure,

Prentice Strong, member

would; of

tomary Securities and Exchange
But recently the underwriting
corporation rates unless it capitu¬
Commission release to underwri¬ $15,000,000
of electric plat) rebanking world was admonished by
lated and agreed to imposition of
:
1 :
ters, brought out a number of, funders.
the
Department of Justice that
The proceeds of the projected. a Federal sales tax.
the latter Federal agency would syndicate bids.
.■] p /, ?"

N. Y. Stock

But it was the feeling in some

sale
on

upon

issues,;. evidently

railroad;

the State of New

sue,

derwriting

Attracts

The

Co.

February

Strong will form
ment firm.

his

29th.
own

Mr.

invest¬

Volume 159

Number 4258

THE COMMERCIAL & FINANCIAL CHRONICLE

By More Than 1#000 Members And ©nests

jlrno JohnsonSays $200 Billion National

The Business
v

Protluclion Will Have To Be Maintained

Man's Bookshelf

V Arno Johnson, Director of media and research for the.J:. Walter
•V Agricultural Yardsticks — New
Thompson Company, describing the findings'of a lengthy -sfudyVpft York "State .Bankers
Association,

post-war opportunities to a meeting of the American Marketing 33
liberty Street^ New York 5,
Association, at the Hotel Sheraton, in New York City on Feb; 18, 1N.!
Y;--^paperr^9f (quantity prices
stated that a total national production of all goods "and services
on

Apprize Congie& Now On Needed Revisioii
Of Securities Acts: Rep. Bnffett
Editor, TT$ Commercial-fend Financial Chronicle: .V;> //•;,/
Having been in the securities business for some 16 or 17 years
myself, I have an intimate knowledge of the operating problems of
the security business.
For that reason, I find myself in agreement with
the article, NASD PROFIT LIMITATION RULE WOULD CLOSE

request).
a $200 billion level,-compared to a
*"s:
''
\'.'to*
CAPITAL MARKETS TO SMALL BUSINESS, in the "Chronicle" of
"prosperity"'j;leyel:;v bf *' ■■;
v/ ;-V v;.
$100 billion, to provide full ..era- | Johnson said. "That would allow ;' Analysis of State Industrial De¬ Feb. 3, and if I can.be helpful in*>
velopment Programs In The Thir¬
ployment at present prices and $165,000,000,000 to be available -as
that connection I will be glad to Building, New York 17, N. Y.—
teen Southern States—Paul Barlevels of production per employed compensation to labor, of which
do so.
paper.—10c.
of r Tennessee,
civilian. The New York "Times" $10,000,000,000 could be invested nett—-University
To my mind, one of the most
(Published in
of Feb. 18, in which Mr. John- in savings, another $10,000,000,000 Knoxville^ Tenn,
important problems confronting
Problems Ahead, Post-War Re¬
the
University
of
Tennessee the nation is the
Son's remarks were thus reported, absorbed in personal; taxes and
necessity for construction of the World Economy
"Record")
further quoted him as follows:'
$145,000,000,000 for consumer ex¬
facilitating the financing of small —Gustave Henry Gluck—Colum¬
will

fiave- to be maintained; aC

exist

which

will

make

full

employment
"essential."
These,
he explained, include an increased
labor force' totaling over 60,000,000 with the return of soldiers,
heavy capital investment in

plants and expanded production
•capacity, the huge Government
debt which will require a high

be convinced of the obsoles¬
cence

of his

in the

house

old

market

before; he

for "a

new: one.

it, and a public attitude that will
tolerate
widespread unem¬

end

ployment.

productivity, and herein the

hot

addition

requiring facil¬

ities for production and distribu¬

tion," Mr. Johnson declared, "full
employment at the present rate of

will require a. consumer
demand
and. purchasing
power approximately double pre¬
war levels.
The average produc¬
tivity per employed person in
1944 is $4,000 a year, this cannot
drop below $3,500 in the post-war
period without reducing purchas¬
ing pqwei."
r«,«
productivity

In two pre-war peak years pro¬
duction
approximated $100,000,-

;•(

explained:
In these years consumer expendi¬
tures for goods and services did
not
exceed
$71,000,000,000,
he
added.
However,
in
1944,
alfhough the nation is operating on
000,000,

war

Mr.

Johnson

economy,

ditures

are

consumer expen¬

expected to amount to

$92,000,000,000, "more than in any
peacetime year," he continued. -, ;
"A

labor

force

of 57,000,000

the post-war period, if used effi¬

ciently,

000,000

■

enterprise after the

"Surveys have shown that as
family income expands there is a
tendency for the family to become
a
better
market
fOr. consumer
;
However, in many: cases,
as
housing, the consumer

Even

"In

penditures.

level of national income to service

;

Mr, Johnson stated four factors

will

'x'

»•'—1

pre-war'

could

worth

produce

$200,000,-

goods,"

Mr.

though income
employment
is

there must be

is
-

doubled

prevalent,

demand for

Back

Christ—

Elmer

Youngman — Published. by the
author,,- 20
Midwood
Street,
Brooklyn 25, N. Y.—cloth—$3.00.
Central

;

Banking

Functions

the United States Treasury, 1789-

1941-^Bsther

Rogoff Taus—Co¬
tJriiversity Press, Morningside ; Heights, N, Y.—cloth—
lumbia :

$3.50/;

tion

this

toward

change

ac¬

requires

amendment in the SEC

formulating their plans and sug¬
gestions now and getting them be¬
fore Co'ngress in a practical, con¬
crete way.
I will be glad to co¬
in

operate

this

initiative should

effort,
come

HOWARD

but

the

House

Wash¬

a
consumer
.demand Irving
Fisher and Herbert W.
ington, D. C., Feb. 11, 1944.
advertising
and
other Fisher—Harper & Brothers, 49 E.
means will play a great part."-. 33rd St.,. New York City—cloth—
tary Standards Inquiry, *408 Grayr
bar Building, New York 17, N. Y.
"There are many factors which $3.00. ' V'
will influence full post-war em—paper—10c.
-

Employee Counseling, A Survey
a New Development in Person¬

ployment," Mr. Johnson empha
"Large
pent-up
demand

of.

for durable

nel

;

Relations

goods, probable hous¬
ing demand, large savings and re¬
duced private debt, new products
ready for development,' deferred

Princeton

maintenance

markets
works

and

will

repair,

export

shock

ployment of.

—

Rela¬

Industrial

tions;.Section, Department of Eco¬
nomics

1
public
a!favorable in¬

temporary

war

unem¬

workers and

re¬

turning

soldiers, heavy taxation,
government bureaucracy and restrictions, probable liquidation of
war
supplies, maladjustments in
the price structure and the sud¬
den stop in-the flow of war ex¬
penditures will be retarding fac¬
tors."

and

Social

Institutions,

University,

Princeton,

J.—paper—$1.00.
International

February,
of

Field

Conciliation

1944—contains
Marshal

Jan

Condliffe—The

Mone¬

factors," Mr. John¬
concluded, "outweigh the re¬
tarding factors."
;
v

address

Christiaan

Smuts, Woodrow Wilson Founda¬

League of Nations and Associated
Agencies (by Arthur Sweetser),
end World Organization (by the
Honorable John J. Parker)—Car¬
negie Endowment for International
Peace, 405 West 117th St., New

Building, New York 17, N. Y.
—paper—one copy, no charge—ad¬
ditional copies 100 each.

Parke

Currency

Insti¬

Pasadena,

ence

the Moscow

Confer¬

(Address

by the Hon. Corthe Congress of
the United States November 18,
1943) and Texts of the Cairo and
dell

Hull

Teheran

before

Declarations

—

January

1944 issue of "International Con-:

ciliation

Carnegie Endowment

—

117th Street,

Peace, 405 West
New York 27, N. Y.

—paper—5c.

Small

Business,

Its

Place

Trends—Noel

Conditions And

Commerce

National

Association of

Manufacturers, 14 West 49th St.,
New York 20, N. Y.—paper.
Post-War Tax Policy and Busi¬
ness

Expansion—Lewis

mel—The

the

Wash¬
i j

ington, D. C.—paper. v/

Sargent, Secretary,

National Association of Manufac¬
turers

and

Problems—Emerson P. Schmidt—

Kim-

Sources, Disposition and

Char¬

acteristics of the Capital Employed

Thirty

Oil Companies During

the Nine-Year Period 1934-1942—-

Joseph E, Pogue and Frederick G.
Coqueron—Chase National Bank
of New

York—paper.

Brookings

Institutions,
Washington 6, D. C.—paper—500-

Statistical

Year-Book

The

League of Nations (in French and

Lessons—

Young—The

California

Technology,

United States of America,
Post War

27, N. Y.—paper—50.

Inter-War

Section,

bar

Postwar

John

tute

Calif .—paper—$1.00.

tary Standards Inquiry, 408 Gray¬

for

"Favorable

son

—
Mary
Wortham—Industrial Re¬

Chamber

tion- Award; Draft Pact for Fu¬
ture International Authority; The

York

lations

for International

Money and International Trade
—John

deferred

have

fluence/However, time and cap¬
ital required for plant conversion,
the

•

Rating of Supervisors

Harper

Report

BUFFETT.

Representatives,

through

sized.

—$1.50.

active in the business.

Constructive Income Taxation—

University Press, 2960 Broad¬
New York 27, N. Y.—board

from those

atfbn

bia

way,

Act, it seems to me that those in
the investment business should be

the
cre-

war.

end

Mone-

Charles O.
Standards

Role

Gold,

The—

English)

—

Columbia

University

Hardy—The Monetary Press, Morningside Heights, New
Inquiry, 408. Graybar York—paper—$2.50.

THE COMMERCIAL

Western Pacific

Trading Markets in

Chicago & North Western

RAILROAD SECURITIES
f/

B.&0. Cv. 4Vk$
B. & A. 4V4s

W:S'

B. & A. 5s 63

Chgo. Nw. 4%s 49

Chgo. Mil. Gary 5s 48
C. M. St. Paul 5s 75

C. M. St. Paul 5s 2000
C. K. L 4s 34

C. R.

4Vgs 52

1.4I/2S 60

Col. & Sou. 4%s 80
^

Circular

New Securities

'written request

PFLUGFELDER, BAMPTON & RUST
Members
:

New

York Stock

New York 6
Bell

Telephone—DIgby 4-4933

Railway

Tiletype-^Nt 1-31CL

Guaranteed 5s
October 1969/49

Bought

Sold, —• Quoted

MEMBERS

New York 5

York

Stock

leading Security and

TWX-NY1-1950

120
231

Exchange

LaSalle

So.

other

and

Commodity Exchs.

Broadway, New York 5,

philadelphia

Interesting Utilities

N. Y.

St., Chicago 4, 111.

Y; Attractive Situations

Ward & Co., 120 Broadway, New
i. York City, have prepared circu¬
lars on several situations which
of Delaware Power & Light offer
attractive possibilities, according currently offer attractive possi¬
to memoranda prepared by Buck¬ bilities, the firm believes. Copies
ley Brothers, 1529 Walnut Street, of these circulars, on the follow¬
Philadelphia, Pa., members of the ing issues, may be had from Ward
New York and Philadelphia Stock & Co. upon request:
Exchanges.
Copies
of
these
Du
Mont Laboratories "A;"
memoranda may be obtained from Merchants
Distilling;
Crowelithe firm upon request.
Collier Publishing; P. R. Mallory;
General
Instrument;
Hartford
Empire Co.; Long Bell Lumber
: Favorable Outlook
Co.;
Southwest Lumber Mills;
The post-war outlook for Ely Great American Industries; Kel& Walker Dry Goods Company is
lett Aircraft; Mid-Continent Air¬
most favorable, according to an
lines; Richards, Haskelite; Doyle
interesting study of the situation Machine Tool; Metal & Thermit;
prepared
by
Scherck,
Richter A. E. Staley; Central Electric &
Company, Landreth Building, St. Tel.; Massachusetts Power & Light
Louis, Mo.
Copies of the study, $2 preferred.
discussing prospects and perform¬
Common stock of

-—

hartford

•

)

Canadian National

Exchange

61 Broadway

New

boston

J. Arthur Warner & Co.
^^.120 COrtlandt 7-9400
Broadway

(When Issued)'

■

Den. Rio Grande 4s 36
Geo. Sou. 5s 45 ' -•
Lehigh Vy. 4s 2003

Others Traded

Railway Co.

Capitalization Reduction Possibilities

MOP 4s 75
MOP 5s Various
M0P5%s
MOPS^s
St. L.SF 4s 50
St L. SF 4%s 78
Seaboard 4s 59
Seaboard 5s 31
Seaboard 6s 45

Chgo. Alton 3s 49

C. R. L

New

Cuba 5s 60 CDs

&0.4s 44

Thursday, February 24, 1944

& FINANCIAL CHRONICLE

Southwestern

Public Service and Common w.

may be had

ance,

from Scherck,

Richter Company upon

request.

and

Leased Line Issues

12 WALL STREET

NEW

RAILROAD

Recent price

Corporation

Corporation,

Distillers

Fifth Avenue, New

: i

Teletype BS 259

Telephone HAnover 2-7914

would merely be

charged against

securities allocated.
Trade

Attractive Situation

Seaboard
Chicago Rock Island Circular

& Co., 148
Mass. Copies
of this study may be had upon
request from Raymond & Co.
pared

Airline
Ail Issues

Stoc\ Exchange

Broadway, New York

Telephone REctor 2'7340

Raymond

State Street, Boston,

request

SutroBros.&Co.

Capital stock of Pollak Manu¬
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discussion of the situation pre¬

Complete Arbitrage Propositions

120

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350

York 1, N. Y.

Bought—Sold—Quoted

request

interest and/or dividends on new
We

Members 7\[ew T or\

148 State St., Boston, Mass.

Tel. CAP. 0425

WHEN ISSUED

8.00
4.49

814

Analytical discussion

prepared an attractive book¬
let
containing
the first
arti¬
cles in the series they have been
running in the "Financial Chron¬
icle." Copies of this booklet may
be had upon request by writing
to Mark Merit, in care of Schen¬
ley

SECURITIES

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9 Mos. Earnings—

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REORGANIZATION

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Volume 159

THE COMMERCIAL

Number 4258

& FINANCIAL CHRONICLE

cutting

793

timber,

including

se?

lective logging, as a capital gain
rather than annual income. As a
grower and seller
of timber, i
think that timber should be treatea

•

President Roosevelt,

previously indicated his disap¬

who" had

proval of the $2,315,200,000

Congress on Feb. 22. Ref¬
Feb. 7 by the Senate and House of the bill

vetoed the measure in a message sent to
to the

erence

MAJESTIC

adoption on

crop

tax bill recently pdssed by Congress, /when

and therefore as income
This would

it is sold.

courage

en¬

NOTE—From time to time, in this space,
there will appear an article which we hope

This is number twenty of a

evemntl^fmL

agreed .upon by the conferees appeared in our issue of Feb. 10,1
page 600, vOn -Fsb..22,
tax without justification and in a
(it was reported in Washi g
rnmneiied tn Hr» thi« in what i hianner which might well lead oh
advices to the New.York. "Journal
as

The Mail

RADIO NEWS

meeting in a closed

of Commerce^

that

session

"Standings of the Stars"

afternoon,

were

egareTas

For

the

m,"\ commercfal
of the I

Many months ago, after careful,

un¬

presented a 20-5 examination of the finances
overriding the; nation, I asked the Congress for
President's veto. Said the advices; legislation to raise $10,500,000,000

derstood to have
front

'Fibber, Hope Seesaw
Honors for this

tion

special War Loan show used
on January
17th. Other■

THE STANDINGS
OF THE STARS

In his veto message

The

life

uncertain terms

before

pleasure

Jack Benny

Aldrich Family

Radio Theatre

purports:

little

would vield
on

nidimati SamG
TaYCShtS

$fl00 000 000

it grants

bin"

Mil

taxes

can

easily

This can
be accomplished by the passage of
a

Inad

simPle ^oint resolution enacting

those provisions of the bill which
increase the excise taxes. I should

relief from exist-

Vnot

excise

and quickly be levied.

over

referred

the

glad
e

aoorove

sued

meas-

preset?

the

taJpHncipTafreZUue 51"?

"""h16

provding!

fact

\™ve cri«cized.

results of last year's tax bill. The
automatic
in-4
Ruml plan was not the product
required to meet the
of this Administration. It resulted
claims that are being built up
from
a
a tax> bill/? he said, "I am com-/
widespread
campaign
against the Social Security Fund.
pelled to decide that it is wholly Such a postponement, does not based on the attractive slogan of
ineffective toward that end." He seenx
"pay-as-you-go." But/as was said
wise,,
declared it to be "not a tax. bill;
The clause, relating to renego¬ many years ago in the State of
New York in regard to that same
but a tax relief bill providing re-l
tiating of war cpntracts terminates
lief not for the needy but for the
the present renegotiation author¬ slogan, "You don't pay and you
don't go."
' '
greedy." He described the bill as ity on Dec. 31 of this year.
This

in our national life
have stated in no uncertain terms
that my figure was too low/' "As

prominent

Fanny Brice

for the sake of this and suc¬

time!

Frank Morgan &

war

that

ground

that relief not for (he
needy but for the ileatures
"many months ago, after careful greedy
I
another most important reexamination of the finances of the
The
elimination of automatic sP®ct
would disappoint
nation, I asked the Congress for increases provided in the Social, ?,n<^
^ ® American taxpayers.
legislation to raise $10,500,000,000 Security Law comes at a
E\ery one of them, includmg ourover and above the existing rev¬
when industry and labor are best selves» *s disappointed, confused
enue system.
Since then persons able to adjust themselves to such and bewildered over the practical
He

Abbott & Costello

should give my approval
bill on the

having asked the Congress for

^baj.

the Presi¬

000."
3

Jack Haley

this

increases/

Ureases

These

are

Mr. District

Screen Guild Players 1
Leave It

"replete with provisions which not
only afford indefensible special
privileges to favored groups but
sets dangerous precedents for the

seems

The nation will readily under¬

unwise at this time because

weeks this series

appeared from time
is

ours

We felt
product that

enjoys nation-wide distribution,
of those who continually buy
brands, might be interested in
a type of advertising that is quite
off the beaten road.
(
many

loaf of bread to take care of this

Treasury by less than $1,000,000,-:

Joan Davis &

SJJLjSf Jnntr^tc

clll nielli COI1T1 aClS.

$2,000,000,- mg taxes which would cost the
Actually, however, the bill; Treasury at least $150,000,000 and
j

000.

Charlie McCarthy

wv«r

In its net results will enrich the

Molly

Bing Crosby;

Aviof*iV»rt

persons''..JV WfS rtlT™ XrZT

stated in

discussion On the issue.

enue

Fibber McGee &

Take It

ports to increase the national rev¬ dit
Jan. 80

Attorney

revenue

dent stated that the measure "pur¬

PROGRAM

Walter Winchell

4-Vi/%

the existing rev-

thaLmy,, figure Was too low,

program
to meet
wartime needs. Chairman Robert

RATINGS

Music Hall

Representative A. Willis

nave

take the House floor tomorrow in!

15 Best-liked Shows from
Hooper Radio Reports

Bob Hope

above

Bag

to time in your newspaper.

that since

:■/■}£

u-n

National Program ratings of your

Present

onrl
and

are

increase! the < national revenue;
ceeding generations, I should be
by a little over $2,000,000,000.
content with a small
piece of
L.
Doughton .' (Dem., Va.)
an¬ Actually, however, the bill in its
crust.
I might have done so if I
nounced he will vote to enact the net results will enrich the Treas¬
had not noted that the small piece
tax bill over the veto..
ury by less than $1,000,000,000.
of crust contained' so many ex¬
While the showdown will not'
As a tax bill, therefore, I am
traneous ond inedible materials.
come ; until
Thursday (Feb, 24); compelled; Ho /decide that it is /
In regard to that part of the bill
when
the
House
vote
will
be; wholly / ineffective/ fcward
that which relates to
wholly unobjectaken after a
one-hour debate, erid'//?//?////:::^
'iti
.tionable tax increases, may I releading members of the Ways and
Means
Committee
prepared to) ports to provide $2 100 000 000 ill spectfully suggest to the Congress
provide $4,1UU,UU0,UUU m
po ts
stiff

Majestic Radio News No. 2
February 15, 1944

was

Robertson (Dem., Va;). i Mr. Rob-;
ertson has been a proponent of a-

time

rankings show little change.

nxr£»r*

over

system. Since then
Among members ' who took a
stand, against the President's posi- i prominent in our national

Theatre is again in the Top Fifteen
in 6th place after dropping off be¬
its

quote:

enue

-This has been a seesaw battle for
weeks between the two. The Radio

cause a

airlines

some

articles has

■

favor

from which

week's Monarch

of the Air go to Bob Hope who sup¬
plants Fibber McGee in first place.

series.

SCHENLEY DISTILLERS CORP., NEW YORK

reforestation.

our

Well, we have had a good average
and we are
leading up to something. Hundreds
thus far (knock wood),
of letters have

come

from

our

readers... gratifying letters, most
of them. But, in spite Of our stud¬
ied efforts to
we

avoid controversy,

do "corne a

cropper" once in

while. Whenever

fellow bursts

out in

print, he invites a rabbit
punch on his occipital. So, we have
perhaps eight or ten
highly-spiced, extremely pungent
epistles—dressing us down unmer¬
cifully. All of these letters—hap¬
pily in the minority—followed the
story about our friend, the Judge,
received

who said he resented the

implica¬
partaker of "intox¬
just hecause he enjoys a
highbaU with his dinner.
tion that he is

icants"

Well,
like

good people who don't

you

us—we

believe in minority opin¬

ions and

minority rights. Just so
have divergent opinions
openly and hon¬
estly expressed /. . just so long are

long

as we

in this country,
we

balanced and safe. We wouldn't

have it

other way. If this
Voltaire, he would
put it this way, "I do not agree
with what you say, but I will de¬
fend to the death your right to
say it!"

writer

any

were

When a nation has only one ruling
opinion—one dictatorial voicethen farewell to the civilization we,
in

America,

are

determined to

re¬

tain. When only one voice dares

speak, the people are no longer
they speak only with
a shrug of the shoulders .. ♦ a bite
of the hps.. . a look in the eyes...
articulate...

has

at present deter¬ stand that it is not thle fault of the
renegotiation time Treasury Department that the in*We, in the Distilled Spirits In¬
limit should be. More experience come taxpayers are flooded with
future."
K
dustry are here because the' *voice' *
is needed. The formal right of ap- forms to fill out which are so com¬
As we have heretofore indicated
of America, by an overwhelming
pel to the Tax Court that is Plex that even certified public ac(Feb, 3, page 523), the bill as
granted by this, bill is an inept countants cannot interpret them, majority at the polls, ten years
finally agreed upon, freezes social
provision/ The present Tax Court No, it is squarely the fault of the ago, voted us in. We shudder to
think of what would be going on
security for old age and survivors' exists for a
wholly different pur- Congress of the United States in
benefits at 1% for 1944, instead
in drafting the today, if the conditions that pre¬
pose and does not have the per-: using language
vailed during prohibition were still
of permitting the rates to double
sonnel or the time to assume this aw which not even a dictionary or
with us. Then we really would have
on March 1, as provided in exist¬
a thesaurus can make clear.
heavy load. 5
7
a
job on our hands. Gangsterism
ing law.
Taking cognizance of
The bill is replete with provi¬
The American taxpayer has been
in our own country and gangster¬
this, the President said: j sions which not
only afford inde- promised of late that tax laws and
ism abroad!
"The bill purports to provide
feasible special privileges to fa- returns will be drastically simpli$2,100,000,000 in new revenues. At vored
MARK MERIT
groups but set dangerous fied. This bill does not make good
the same time it cancels out auto¬
Of SCHENLEY DISTILLERS CORP.
precedents for the future.
This that promise. It ignores the most
matic increases in the Social Se^
tendency toward the embodiment obvious step toward simplifying
curity tax % which would yield
FREE-A booklet containing
of special privileges in our legisj taxes by failing to eliminate the of earlier articles in this seriesreprints
$1,100,000,000
In a d d i t i o n, it
will be
lation is in itself sufficintly dan-! clumsy Victory tax. For fear of
sent you on request. Send a post-card to
grants relief from existing taxes
gerous to counterbalance the loss dropping from the tax rolls those
me care of Schenley Distillers
Corp.,
which would cost the Treasury at
of a very inadequate sum in ad¬ taxpayars who are at the bottom
350 Fifth Avenue, New York 1, N.Y.
least
$150,000,000
and
possibly
ditional revenues,
of the income scale, the bill re¬
much more."
;
v Among these special
privileges tains the Victory tax—while at
The President raised other ob¬
are:
the same time it grants extensive
jections to provisions of the bill,
(a) Permission for corporations concessions to many special inter¬ simplicity for millions of small in¬
stating, among other things, that
come taxpayers.
est groups.
"it ignores the most obvious step reorganized in bankruptcy to re¬
In the interest of strengthening
The suggestion of withholding
toward simplifying taxes by fail¬ tain the high excess profits credit
the home front, in the interest of
and depreciation basis attributable at graduated rates, which would
ing to eliminate the clumsy Vic¬
to the contributions of stockhold- relieve millions of people of the speeding the day of victory, I urge
tory tax."
the earlist possible action.
"In regard to that part of the ers who are usually eliminated in, task of filing declarations of estiFRANKLIN D. ROOSEVELT,
bill which relates to wholly un¬ the reorganization. This privilege. mated income, was not adopted,

objectionable tax

KayKyser;: / '
•Dec. 30 ranking.

Note:
/

Ratings
calls
10:30

Not broadcast Jan. 17.

leading
E.W.T.

based on ?500 telephone
hour made from 6 PM to

#re

per
PM

not

Thus, several
heard after 10:30

cities.

programs
are

rated.'

Dream Radios
Radios will be different after the "
war.

They will sound truer, have '

clearer short wave, improved FM.
In short, they will be better radios. X
But if you are dreaming of a
cabinet full of radio miracles, you
may

disappointed

when

the

[alarm clock of
[peace goes off.|
j Some of the glam- v
our

have
may

gadgets.you /
heard about;
be fine; for ]

wartime

use?

what you
a
better
radio.

but;

want is:
home

:';;/•//

•

Like every other f
radio maker now j

building w ar j
equipment for Uncle Sam, Majestic ;
an eye out for the future just t
give you all the advancements >
that precision war work and re- h
search have uncovered.
Copyright

—

person

mine

can

what

Reg Skelton, leads all programs
broadcast after JO:30 PM E.W.T,

M.j.nticKadfo & Television Corporation 1944

increases," the
to
Congress
"that the excise taxes can easily
and quickly be levied." He further
says: "This can be accomplished by
Che passage of a simple joint reso¬
lution enacting those provisions
President

the

suggests

bill

which

excise taxes.

increase

I should be

the

glad to

inures to the benefit of bondhold-

The White House,

j trust, therefore, that the Gon¬
have pur-!greSs, after all these delays, will
chased their bonds in the specula- aet as
quickly as possible for simDu Mont Lab. Attractive
tive market for far less than their
plification of the tax laws, which
The current situation
in Du
face value. It may open the door will make possible the
simplifica¬
Mont Laboratories offers attrac¬
to further windfall profits in this tion of the forms and
computa¬
market because of the undeserved tions now demanded of the indi¬ tive possibilities according to a
benefit received by reorganized vidual
issued
by J. F.
taxpayers.
These
tax¬ memorandum
ers

who, in

many cases,

corporations.

payers, now engaged in an effort Reilly & Co., Ill Broadway, New
(b) Percentage depletion allow¬ to win the greatest war this nation York City. Copies of this inter¬
ances/questionable in any case, has ever faced, are not in a mood
esting memorandum may be had
enue provisions of the bill with¬
are now extended to such minto study higher mathematics.
from the firm upon request.
out ; the objectionable features I erals as
vermiculite, potash, feld¬
The responsibility of the Con¬
criticized."
'■/>■'!'///!/ spar, mica/ talc, lepidolite, barite
gress of the United States is to
approve

such

measure.

This

would preserve the principal rev¬

■

The President's message follows:
return herewith, without my

and
some

spodumene.
of

these

In the

minerals

case

of supply

the War

United

the

Government

States

whole

the
with

approval, H. R. 3687, entitled "Ap.
MIGHTY MONARCH OF THE

AIR*

Act,

MAJESTIC RADIO & TELEVISION CORPORATION

CHICAGO

■

•

Production Board refused to cer- adequate revenue for wartime
toJProvide Revenue, and for tify that current output was in- needs, to provide fiscal support

Other, Purposes."
I regret that I found it necessary
in the midst of this great war to

adequate for war needs.

per-

the'

the stabilization program, to
hold firm against the tide of special privileges, and to achieve real
for

Now Wm. J. Collins & Co*
(Special to The Financial Chronicle)

PORTLAND, ORE.— The firm
name

Warrens, Bosch & Floan,

Porter Building, has been changed
to William J. Collins & Co.

THE

Thursday, February 24, 1944

COMMERCIAL & FINANCIAL CHRONICLE

prices in general]
higher level after f
before.
Airline ]
operations are particularly , vul- ];
nerable to increased price levels
because of large payrolls in re¬
that

believe

Future Of Air

Transportation

will attain
the

(Continued from first page)

UTILITY PREFERREDS

with

some

of the
.

which must be
our
possibilities can

turned into realities.
airlines

The

Consolidated

Electric

& Gas

Securities

terms of results.

400,000 shares of common stock of Central Illinois
Electric & Gas, one of its larger subsidiaries.
Sale was approved
about Feb. 8th but instead of permitting a negotiated deal with
Co. (a Chicago banking

Central Republic

house with a New" York

office), the Commission required competitive
associates made a somewhat^>~

higher bid ($17.63) than Central
Republic and offered the stock
publicly at 19Vs on Feb. 17. Allen
had also been the successful bid¬
ders for the stock of Derby Gas
& Electric Company early in Jan¬

Illinois is a "mixed"
utility company serving Rockford,
Freeport,
Lincoln and - smaller
Central

communities in Illinois.

Revenue

derived about 61% from sale
of electricity, 23% from gas (part¬

ly natural and partly manufac¬
tured), 13.%% from business in
Kockford, and 2% from water and

.....

tive provisions
fully clarified.

have not been
j

capacity

generating

Also,
excess
profits
in 1943 amounted to $2.21 a

taxes

repeal

and

uniforms) i

Command

Transport

in the post-war period?"
"Will
military transport planes be
adapted
to
future
commercial]

use?" "What other important tech¬
nical

of such taxqs

might increase earnings by more
than $1 per share.
f
At the recent offering price of

business

only

utilization of
average, our

because of intense
equipment. On the

entire fleet of planes:

kept flying in the air 12 hours
of each 24. Although airline
traffic is still small as compared

out

with railroads, it is interesting to
19%, the stock yields about 6.8% observe that, in 1941, airline pas¬
and the price earnings ratio is ap¬ senger traffic was about 22% of
proximately 10, though the latter Pullman travel. As an illustra¬
figure may vary with differing tion of the high rate of efficiency
interpretations of the dividend re¬ of our equipment and of the dol¬
striction orders. These figures ap¬ lars invested in our business, it
is appropriate to note that the
pear about in line with those of

Appeals From WHC

Decisions Announced

Feb. 15. Mr.

are

the

There

is, obvidusly,

single

though TWA pioneered in many transport aircraft is the Constella¬
of these undertakings, I would not
tion, which was conceived by the
have you think that we were the
President of TWA, Jack Frye, in
only airline that has done an im¬ collaboration, with
the
famous
portant: war job.
Each of the Howard Hughes, who is known to
domestic airlines has played an
all of you,
Military restrictions
important part and the industry do not permit disclosure of the
can well be proud of the fact that
specifications or performance of
not a single company has failed,
this
high-altitude,
long-ranged,
in these vital war assignments.
;
4-engined airplane. However, the
Public interest in air transpor¬ Constellation which is flying to¬
tation has been greatly stimulated day excels in actual
performance
by the war. Thus the industry is even the paper performance of
repeatedly confronted with many other advanced transports. These
questions relating to our.post-war airplanes will be made available
plans.- As financial men who seek to TWA when they are no longer
to appraise the future of com¬ required by the
military services.
merce and industry, you also may
As to other spectacular develop¬

Revised Rules Covering

McNutt announced

developments

wind?"

heating.
The territory is
diversified, industrially and
agriculturally; manufacturing
companies in Rockford; produce
average
gross revenues of each well
be
concerned
with these
similar issues.
over
5,200 different items.
The
airplane operated by the major questions.
company's residential rates are
airlines last year was five times
In your business you are called
said to be among the lowest in the
the original
investment; in . the
upon daily to forecast the future.
State, the average domestic reve¬
plane itself. In other words, every I hope that I do not malign your
nue per kwh. for the
12 months
dollar invested in. aircraft pro¬
forecasts if I say that they some¬
ending September 30, being 3.710.
duced five dollars of gross rev¬
times fall short of being perfect.
Conforming to an order of the
enue.
f
],
On the other hand, you allow
Illinois Commerce
Commission,
Our industry has come a long yourself a i reasonable margin of
the company has eliminated from
Unrestricted
right
of'lapoeal way since we were almost wholly error. If
its balance sheet all plant adjust¬
you will accord me the
from decisions of the War Man¬
dependent upon mail' revenues, same latitude, I will venture to
ment items (account 107) and has
power Commission is provided in In 1931 mail revenues were 82%
answer a few of these questions.
provided a reserve of $2,179,103
a
revision of its regulation gov¬ of total revenues, whereas in 1943
against plant acqui Sitibn [ ad j usj-One of the questions frequently
erning appeals, Chairman Paul V. mail revenues approximated only
ments (account 100.5).
In addi¬
steam

well

pas¬

operates a grand total of 186 air¬ This, passenger list reads, like a; "airplane of the future." Special¬
planes and during 1943 . operated Who's Who of the United Nations., ized Resigns will be required for;
an average of only 175: airplanes.
long list of other special mili-; different types of service. By all
Last year, with this small fleet, tary assignments have been ac¬
odds; however, the most impor¬
the industry carried in excess of complished by my company.
Al¬ tant technical development in

Rockford,
share

1,100

many

Favorable post-war .factors efr 3,200,000 passengers, 55,000 tons of
fecting earnings are the intentiop mail and 31,000 tons of express.
The industry has been able to
of the
management to convert
fully to natural gas and to add to handle this enormous volume of
electric

uary.
...

Allen & Co.

bidding.

and

than

airplanes does the have: carried presidents and am-,
domestic airline industry oper-) bassadors, kings and queens, ad¬
ate?
If you ask the average per¬ mirals and generals, the sick and;
wounded of the battlefields and
son you will probably get answers
of tons of critically-;
up in the thousands. The facts are hundreds
and supplies.;
that the entire industry currently needed;; materials
How

registered

Company on Dec. 22

18 months
trans-Atlantic,
TWA

In;the^ensuing

transportation will be lowered
publicity.
The amount of this
;
These are
more
transbecause, as the price of all other
publicity conveys the impression crews.
that we .are already "Big Busi¬ Atlantic crossings than had been
goods and services goes up, an
effective reduction will result in
ness," jput we are not "Big Busi¬ flown by all aircraft of all nations:
"the "real" cost of transportation.
ness" in terms of dollars invested prior to Pearl Harbor.
In these :•
or
equipment operated. We feel stratoliners and other four-engine'
Still
other questions
include:;
that we are "Big Business'' i in transports
our
crews
(in Air "What kind of planes will be used

Curtis

SEC

the

lot

reductions

fares immediately fol¬
lowing the war. On the otjher
hand, the relative cost of air
senger

crossing were completed by

Central Illinois Electric & Gas
with

Conse-,

costs.

rates, I do not 16ok for

cargo

substantial

behind schedule on its first cross¬

ing.

receive

total

f quentlyf when faced with rising ;
costs and the need of reducing

flight

oefore.

Public Utility

flation

was on its way to Africa
urgently-needed men and
solved., supplies. It ran only 50 seconds

review the present size and nature

problems

ESTABLISHED 1879

6f the business and

Paine, Webber, Jackson &

•"

tunity, and in significance to the . time these stratoliners were the
future of America.
In consider,-[only 4-engine equipment in coming the future of air transporta¬ mercjal -service within, the United
tion, it is appropriate briefly to States. Within 10 weeks the first

than

war

■

asked

what

"To

is:

extent

are

ments in

aviation, we have learned
say, "It can't happen."
The fancy of the public has been
captured by the helicopter, the
glider
and
by
jet
propulsion.
However, none of them seem to
never

have reached the stage of devel¬

opment

which

would

permit

careful person to believe that they
Would be of economic importance
in the immediate future.

Radar

ment which

technical

develop¬

will have far-reach¬

ing commercial importance. Radar

Mail rates in the airlines subsidized?" The facts and its related science will per¬
the last 10 years have decreased
mit the safe navigation and land¬
are that the Post Office Depart¬
dictated by the Commission's ex¬ from
$8 a ton-mile to only 600 a ment
paid all domestic air car¬ ing of. aircraft under almost any
perience in handling thousands of ton-mile today, a decrease of
weather condition.
In the past,
added to the reserve, which it is
riers $22,500,000 for the carriage
cases.
The announcement added;
92.5%. Passenger rates were 120
the airlines have properly sacri¬
estimated
will be sufficient to
of airmail in fiscal 1943 and re¬

tion, 90% of the excess over divi¬
dends paid (with a minimum bf
$100,000
per
annum)
will be

17% of the total.

McNutt said that the changes were

a mile in 1929 as compared with
ficed reliability of service in order
ceived at least $60,500,000 from
to achieve safety, but the day is
approximately 50 a mile today.
the sale of airmail postage. This
The book value of the common indicated those persons entitled to
Commercial air transportation, leaves a gross profit to the Post near at hand when complete re¬
stock, after making these adjust¬ appeal and spelled out under what essential in peace and vital in war, Office Department of $38,000,000 liability of schedules (even sur¬
conditions appeals could be made. is but a small
surface
transportation)
part of the job be¬ or over 62%. There are certain passing
ments, was $14.13.
can be maintained consistent with
The company has no preferred
"The new regulation, further¬ ing accomplished by the airlines.
ground expenses of the Post Of¬
stock,
capitalization being ap¬ more, extends the right of appeal A high percentage of airline per¬ fice Department other than direct the highest standards of safety.
has
proximately 72% debt and 28% both to worker and employer af¬ sonnel
joined
the
armed payments to the air carrier, but
The question as to the possible
common
stock.
Dividends- on fected by a decision made at any forces. This percentage for our in¬ even the most liberal allocation use of military aircraft for comthe
common
stock have
been step of the appeal process.
Both dustry is unusually large because of ground expenses to airmail j mercial purposes following the
paid since 1931, averaging about persons involved must be present of the relative youth pf our per¬ would still leave the Post Office war" must be divided into two
$1.35 on the present capital set-up at the hearing before the area ap¬ sonnel. Furthermore, our person¬ Department with a profit of mil¬ parts: First, Of what commercial
for
the
period
1937-43.
The peal committee or explain ab¬ nel has been of especial value to lions of dollars. And now the rev¬ value are fighter aircraft and
common
stock
is to be placed sence, but otherwise there are ho the military because of previous enue bill
passed by Congress will bombers? A fighter and a bomber
on a $1.30 dividend basis.
While restrictions on the right to: takef^training. in . air; transportation,
increase
airmail
postage
rates are of no more use as commercial
$1.92 a share was reported earned the case higher.
But manpower was not the.only from 60 to 80. Thus airmail post¬ transports than PT-boats or bat¬
in
1943
compared
with $1.88
"Other changes in the apoeal resource
of the
airlines which age may become not merely a tleships would be as commercial
for
1942
and $1.83 - in ' 1941,
regulation involve points which went to war. Approximately 50% means of recovering the cost of vessels.

write the
inal

cost"

plant down to "aborig¬
in

than

lbss

years.

"The

issued

original WMC regulation
May 22, 1943 specifically

these

due

would

amounts

available
to

sions

for

not

dividend

certain

payments
restrictive provi¬

regarding depreciation,
and
reserves
(re¬

experience

has

nical

revision.

needbd

shown

either clarification

minor tech¬

There

has

example, some confusion on
the question of a worker's right to

quired by the bond indenture and
the order of the State Commis¬

retain

that the $1.30
rate can be paid without diffi¬
culty, though-the various restricsion).

It appears

employment obtained

our

airplanes were turned oyer airmail but also

to the. Army for

been,

for

maintenance

new

Aside from the contribution
manpower

airlines

are

tion

military use.
of.

equipment, the
playing an important
nation's war effort.:

and

for

airmail

other

becomes

means

of taxa¬

and
subsidizer-y

purposes,

the

not the subsidee.

Another

The second part of the question
or not military trans¬

is whether

ports- are

for commercial
The factor which de¬

useful

operations.

popular

question is:
charged

termines the commercial value of

"What future rates will be

a
plane, assuming that its basic
of I cite our war accomplishments, by the airline?" Some individuals design is satisfactory, is the cost
availability, if the employer has not to boast about what we have seem to be vieing with each other of operation. The initial invest¬
appealed and it has been finally done, but merely to indicate that in making the most extravagant ment in an airplane, and the redetermined that the statement was
we are capable of doing the Her¬
promises as to future air fares, suiting depreciation, is only one;
erroneously issued.
:
culean task which faces us after I have been tempted to outdo element of cost. Thus it is entirely
"The revised regulation holds the war. ;
them all by predicting a $10 fare
(Continued on page 803)

role

the

the strength of a statement

that

Puget Sound Power
&

BOENNING & CO.
St., Philadelphia 3

Private Phone

FH 30
to

N. Y. C.

COrtlandt 7-1202

may

appeal as

statement

availability,

The employer

matter of prin¬

precedent but he cannot
demand
that; the
statement
of

Light

Pennypacker 8200

issued, stands.

ciple

Common Stock

1606 Walnut

once

availability be withdrawn or that
the worker be required to leave
his new employment. In order to
provide a means of reviewing the
action of local employment offices

after Pearl Harbor,.
first important,
wax*t rans ppr 1 assignment and
transferred title to its stratoliners
to the Army, agreeing to operate
them wherever needed.
At that'
A few days

TWA received its

penses

are

the

lost

services
an

worker

ex¬

at the Savoy thrown in.

(a)

press

Seriously,- however, ex¬
rates should and will be

reduced

sharply.

The rate

per

pound
for
express
is
now
slightly higher than the rate per

pound

ing referrals in certain types ofcases. "The suspension may be for

the maxi-,
period allowable being ten
employer, the re¬
vised regulation provides an. op¬ days.
This procedure is designed
tional
procedure for temporary, to give employers the greatest de^
suspension
of
the
issuance
of gree of relief consistent with pro-( j
statement of availability and mak¬ tection of the rights of workers."

before

week-end

with

London

for

passengers,,

the fact, that passengers
more

limited period only,

mum

service..

despite

reasonable

that cargo rates in the
future will bear a more direct

.cost.,;,

their

Karp & Co.
acquire the New
membership

York Stock Exchange

the

late

George C.

White

March 2nd and will form the Ex¬

change

firm

Karp

Co.

require partnership with Julius Alexander.

to expect

relationship

To Form

Paul Karp will

relative

(b) There is every reason

Mr. Karp has recently been active
as

individual

thereto he
& Power.

was

dealer;
prior
partner in Karp

Mr. Alexander

was

for¬

merly a partner in Kerngood &
Co.—..

Volume 159

Number 4258

THE COMMERCIAL & FINANCIAL CHRONICLE

How Is Invasion

Orders executed

To Affect The Market?

San Francisco

Stock

(Continued from page 786)

Exchange

The
On

TlAie

ally

Schwabacher & Co*
Members New York Stock Exchange

CO. 7-4150
to

Sacramento

Oakland

Fresno

•

"v.

•

tically certain, and in the com¬
paratively near future, has been
known for some time.
The pres¬
ent atmosphere is not unlike that
prevailing in the Summer of 1939.
that time

Francisco

Santa. Barbara

■

The fact that invasion is prac¬

Monterey

days of the in¬

which would be
at least, is usu¬
unfavorable market fac¬

tor.

San

initial

the

present initially

Ditect private wires

wires

had been

known

for months

that

clouds

were

gathering.

During August,

1939,

with

the

war

outbreak

immi¬

war

the market maintained a
mildly downward trend, and when
the war actually began on Sept. 1
there was only a period of a few
nent,

Tomorrow's Markets

hours

Walter

Whyte

Says-—
Mil

veto

tax

disap¬

prove

may

pointing—Reaction

few

more likely---Look
utilities to step out

for

points

discounted—the

currence more

bring

actual

oc¬

often than not will

further

some

"Early
Last

people whose
buying and selling is based on
Snowing what is going on
around them had previously
made up their minds as to
market's reaction
will be to veto of the tax bill.
the

fol¬

market

re¬

sponse.

I believe that

It is,

weakness,

holds
reservations concerning a future
event until it transpires, and no
how
matter
clearly the
event
seems
to be recognized by the
course of prices—in other words,

By WALTER WHYTE

what

further

lowed by sharp recovery.
The stock market usually

Market action based

course, unnecessary

Peace"

July,

Mussolini's

upon

the

news

downfall, there

was

sharp decline in the market, due
to

the

sudden

burst

"early
peace" psychology combined with
overdue

reaction

after

almost

' *

MlSfc

■

SPECIALISTS

erally ascribed to the reaction was
fear of the economic consequences

recession in business

severe

Real Estate Securities
'

prospect of peace when
need

not

much
as

and

should

comes

not

Since

disturbing apparition

seemed the case last year.
At present the market seems to

to be

anticipated before post-war
prosperity would arrive-? and this
fear, in our opinion, was exag¬

1929''^:;0y\^

marking

time.

The

Seligman, Lubetkin & Co,

narrow

range within which the market as
a whole has moved this
year in¬

Incorporated
Members New

dicates that it is waiting for some
development to take it out of its

41 Broad

York

Security Dealers Association

Street, New, York 4

HAnover 2-2100

doldrums, and that development
is probably invasion.
.

If the

invasion

moves

Real Estate Securities

what

be called expected schedule,
and stock prices are in their
pres¬
ent range, the
market, continuing
the process of
discounting peace
may

261 Fifth Avenue

transition, will probably de¬
cline; but only moderately so,
since
ward
the

the

trend

over-all

reaction

has
for

down¬

months,

could

by fdevelopment

been
be

and

followed

considerable

strength.
If

when

market

invasion

occurs

the

is much

higher than it is
believe that the news

now, we
will result

Corp.
Mortgage Income 6s With Stock

First Fee

and

An Attractive

Equity Situation

The

following article was prepared for publication in March,
1943, but was held up for another article and subsequently lost
in the shuffle.
We print it now just as it was written at that time.
We believe it is interesting now, as the facts in relation to the issue
now seem
even better than the article
predicted.
$57.50 interest is
being paid Feb. 28, 1944, and the current market is around the 50
<S>—

level.

The

office

25-story

sharper decline

structure

erected

when the

southeast

corner

somewhat lower.
It is
conceivable that should the mar¬
ket at that time be substantially

—

loft

$1,000

the

and

28, 1943.

bond

payment made Feb.
Based on the above fig¬

and 29th

than if the
market

news

comes

lower it might even rally.
If the invasion is successfuLbe-

rapid and

1928

of Fifth Avenue

ures, it is estimated that between
Street, New York City, $45 and $50 should be available
stands on a plot of 98.9 feet by per bond.
160.5 feet and contains approxi¬
As the bond, with stock, trades
mately 265,700 square feet of as a unit flat, purchases from now

rentable

until

area.

Reorganized
the

holders

of Dec. 19, 1941,

predecessor

com¬

less orderly.
Severe military set¬
backs
would be psychologically

fund 6s due

unfavorable, but war-benefited is¬
would be relatively strength^

change

income 6s due 1962 and 10

ened

shares of

sues

and

"peace"

stocks weak¬
"Investment
Tim¬

ened.—From

Corporation, New York.

pany's

new

first

mortgage

sinking

1948 received in

ex¬

equal principal amount
stock

for

each

$1,000 bond held; thus, bondhold¬
ers
became
the
actual
equity
owners

common

of the property.

the

would

ex-date

Feb. 23, 1944,
the full annual dis¬

carry

tribution.

Other

tures of the

security

attractive

redemption
or
bonds, holders retain
stock

and

fea¬

that upon
retirement
of
are

the

equity

that

70%

of the

may

authorize

sale

and

ance

of the property.

stock

convey¬

As all net
is distributable

income up to 6%

interest, the yield on this bond
is particularly attractive in view
as

acquisition. of the prop¬
by
the
new
corporation; of its present low level of about
189,356 square feet, or 71% of the 37.
Increasing annual interest
space, was rented, leaving 76,344 distributions and the marked im¬
square feet unoccupied.
At the provement in realty conditions
end of the first year
(Dec. 31, generally should offer consider¬
1942)
of
operation,
Occupancy able appreciation possibilities for
Upon

erty

sudden ending of the war-

officials, and intelligent
plans have been made, so that the

rising prices.
ing'' of Feb^ 10, 1944, issued; by
Early in November the market Economics and Investment
Dept.,
broke again, and the reason gen¬
National Securities & Research

fear of peace.
The basis for this
fear was a theoretical projection

years.

months, transition and post¬
problems have been studied
by business executives ahd Gov¬

15 months of

that the rank and file who
nothing of the action of
taxes on the market, look for
~

market

For

decline should be

know

rally.

the

yond expectation, the immediate

Psychology

.say

within

have been witnessed dur¬

ing the past two

uncertainty,

Private

such

ernment

Stock Market Reception

vasion, there may be little market
response, but such as occurs is
more than likely to be downward,

10 A.M. to 5:30 P.M.

14 Wall St., N. Y. 5

movements

war

Open from

Eastern War

Likely

795

Milwaukee Bend Glair
Elects Bickel Pres.
Milwaukee;: wis.—Clarence
A. Bickel, of The Wisconsin Com-,

had

increased

only

34,366

87%,

leaving

square feet vacant.
rent
roll
of
space

this

curity*

present
''

underpriced
*

•

se¬

that curThe
annual
gerated.
There appears no sound pany, was chosen President of
Tent market uncertainty re¬
leased increased from $253,080 as
reason to couple the
prospect of the Milwaukee Bond Club at the
Pittsburgh Rys. Look Good
at Jan. 1, 1942, to $342,960 as at
flects not potential taxes but temporarily depressed business Association's annual
; The current situation in Pitts-*
meeting and Jan.
1, 1943.
Actual rental in¬
burgh Railways System, particu¬
developments more far-reach¬ conditions and corporate profits winter party held at the Mil¬ come for the 1942 fiscal
year was
with a substantial decline in stock
waukee Athletic Club.
He suc¬
larly certain of the underlying
ing.
Two or three months prices.
$284,000, which was sufficient to
ceeds Gerald B. Athey, of Mer¬
bonds, offers attractive possibili¬
provide for an income interest ties for
ago higher and higher quar¬
In the last few years while em¬ rill
Lynch, Pierce, Fenner &
appreciation, according to
distribution per $1,000 bond of
ters were sounding
a study prepared by T. J. Feibleoff on ployment, national income and Beane. Joseph Carson, Loewi &
$25 and to leave surplus funds of man &
production have expanded great¬ Co., was named
about
how
soon
Co., 41 Broad St., New
Germany
Vice-President;
ly, corporate profits after taxes and Iver Skaar, Harris., Upham & $4,353.19 above the total distri¬ York City.
Copies of this inter¬
would collapse, the time be¬
bution for a carryover into the
and reserves have shown much
esting study, which is available to
Co., was re-elected Secretarynext income period.
It is appar¬ dealers
ing variously given as any¬ more moderate increases. Since Treasurer.
only, may be had upon
However, it

where from

seems

one

month to

one

Following up this -in¬
speculation, business
began making plans for a re¬
turn to peace-time activities,
The same or equivalent quar¬
year.
side"

ters then let it be known that
•once
care

Germany

was
taken
of all efforts would be

turned

against the Japanese.
case the clean-up
take any where from

three factors—excess profits taxes,
Members of the board of gov¬
renegotiation
of
contracts
and ernors chosen were: Mr.
Athey;
contingency reserves—have pre¬ Charles W. Brew; August Engelke,
vented profits from rising in line A. C. Best &
Co.; William John¬
with increasing production, they
son, Mason, Moran & Co.; Fred M.
should prevent profits from fall¬
Koepp, James E. Bennett & Co.;
ing with decreasing production, so and Edwin B. Rhoda, The Mil¬

that
be

decline in production would

largely

cushions.

absorbed

cline

stock

prices—which did not

rise

Would

even

rise in

one

to five years.
*

;

Market's

that

the entire situation may well
No matter how

be reversed.

814)

on page

ket,

Selectivity

its

upswings and
has
repeatedly

swings,

for

the

manifested.
the
PAY US $200 AND WE WILL

mar¬

down¬

made

efforts to discount peace, and this
process has been largely respon¬
sible

come

Income; Govt. Bondhldgs.

THAT

YOU

CAN

COPPER

TODAY'S PRICE, ANY TIME
IN THE NEXT 90 DAYS, AT
YOUR

OPTION,

sources

income and of United States Gov¬
ernment

York

bondholdings of the New

City banks.

Copies of this

interesting tabulation
firm

upon

may

be had

request.

Members

Put

Call
30

Brokers

Pine

and

Street,

...

Dealers

WHitehall 3-9177

Assn.

discount

their

unfavorable

seems

stock

us,

(if,

1943

from

tals

shows

plus

gross

rentals,

the

by the

Steady and substantial growth
in earnings of the "Utility Group"
havedncreased the speculative at¬
traction

both

the

Prior

Lien

cor¬

cash income

electricity, etc.,

and Plain Preferred stocks of New

England Public Service Gompany

according to
the

detailed circular

situation

prepared

Ira

corresponding Haupt & Co., Ill Broadway, New

the

over

period.

Interesting Situation

1942

$179,358.66, income from ren¬
showing an increase of about

$34,600

about

actual

$4,353.19,
increase above

$63,000
figures.

T, J. Feibleman &

from

Net

cash increased

York

City, members of the New

$64,641.01 for the period, showing
a cash balance of the
corporation
of $94,349.71. On the basis of pres¬

York Stock

ent

of this interesting circular may be

earnings the

distribution

annual

made

interest

Exchange

and other

leading national exchanges. Copies

28, had from Ira Haupt & Co. upon
1944, from 1943 earnings, should
request.
considerably exceed the $25 per
Feb.

Trading Markets

market

REAL

ESTATE

has

already to

considerable degree adjusted it¬
self to an expectation of a rela¬

early

Buying

ALL

FRED F. FRENCH Stocks

AND

TRADING

MARKETS IN

REAL ESTATE

TUDOR CITY UNITS

SECURITIES

Bonds

tively

We Are Interested In

;..h\

therefore, that

peace,

that

developments, unless totally

poration for the first six months

1942

breakdowns

uncertain prospects.

the

excess

about

prospects, and "war"
stocks having lagged or declined

FILER, SCHMIDT & CO.

roll

collections

request
Co.

of opera¬

undistributed income of

Laird, Bissell & Meeds,. 120
Broadway, New York City, mem¬
bers of the N. Y. S. E., have pre¬

favorable

EXCHANGE

STOCK

$58,900
rental

year

rent

figures that
1, 1943,

great

ANACONDA

with

tion

above

second

shock to the

PURCHASE 100 SHARES OF

FIRM,

the

The statement filed

extreme selectivity from the
Hence, not only will

invasion

property as of Jan.

1942

N. Y. C. Banks Sources Of

market, but a large
part of the discounting of its af¬
termath must already have been
accomplished — "peace"
stocks
having risen to discount"' their

GIVE YOU A GUARANTEE,

from

started its

pared

such

In the last two years the

It has occurred to

(Continued

commensurately with
profits as did occur.

The

* ,:

Company.

these

Consequently
there
a
corresponding de¬
profits and, in turn, in

should not be

In the latter

waukee

ent

the

war

un¬

expected and unfavorable, are not
likely to cause a wide diversity of

j. Arthur Warner & Col
;\t2GvBroodwoy, New York 5, N. Y.
J

COrtiandt

7-9400

Teletype NY 1-1950

H. TIPTON

SECURITIES
ill

SHASKAN & CO.

CORP.

Member* New York Slock

BROADWAY

NEW YORK 6, N. Y.
WOrth

2-0510

Exchange

Members New York Curb Exchange
40 EXCHANGE
*

Bell

PL.,N.Y.

Dlgby 4-4950

Teletype NY 1-953

'■

FINANCIAL CHRONICLE

1-HE COMMERCIAL &

Ohio Municipal Comment

Steep Rock

municipal market since the middle of last December. While yields
have declined on the whole, only a few basis points over this period,

Iron Mines Ltd.
Voting Trust

Certificates

the Fourth War Loan
;

Capital Stock

for

Prospectus on

Cleveland 13, 0.
Bell Teletype

Phone

Teletype CV 565
Long Distance 500

Union Commerce Building
Cleveland 14, Ohio

1899

what

Kentucky

West Va.

Municipals
■

THE

WEIL, ROTH & IRVING
COMPANY

Member

Cincinnati Stock Exchange

BONDS

MUNICIPAL-CORPORATION
TERMINAL BUILDING

DIXIE

CINCINNATI 2, O.

Murch & Co., and N. J., Detroit, Chicago and Worcester.
Other
promotions were
from 1925 to 1932 represented the
Guaranty Co. of New York in Philip P. Brown, former Secre¬
elected
Executive
Vicenorthern Ohio.
From 1932 to 1936 tary,
President, and Irving R. Zwick,
he was Cleveland office manager
Treasurer,

The

Brooklyn, Ohio
1966

Maturities

Nebraska All Divisions .&

South Euclid, Ohio

McDona Id

awarded $1,403,000 State Teach¬
ers Retirement short-term mu¬

Corp.

was

second with a bid

2%s, and Halsey, Stuart
& Co.. was fourth, bidding 101.73
102.049

yield
prices ranging from 0.30% to
0.65%.
Maturities sold were
largely those of 1944 and 1945

CAREW TOWER

with

!J!

■

Harriman Ripley & Co,
101,52 as 27/sS, and White,
& Co. with 103.6291 for 3s

fifth and sixth.

27/ss.

with

few in 1946.

CINCINNATI 2, OHIO

Weld
were

KLINE, LYNCH & CO. Inc.

"■

TELE. CI

1804

140

Trust

Land

Certificates

Globe-Wernicke Co.
Bonds-—Pfd. & Common Stocks

Com. & Pfd.

Gruen Watch Co.,

Philip

Minter,

dollar basis of 99%%.

Cleveland

ton was authorized by

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

W. D. Gradtson & Co.
MEMBERS

York Stock Exchange

New

Cincinnati Stock Exchange
New

York Curb Associate

mortgage 3%%
Ohio Light &
Power Co. of Findlay, Ohio, on its
bid of
105.159 per $100
bond.
Bonds mature Feb. 1, 1974.
Central

bonds

first

500,000

■"

Dixie Terminal

Building

Tele. CI 63 & 274

formerly Vice-President
Of Reliance
Steel Corp., has
been
made
President of the
Mass.,

company/
company

Hickok Oil

Toledo Edison Pfds.

was

the

at
Sol

Philmore J. Haber*
counsel/ announced.
elected

annual

Friedman

to the position

meeting at which
of Cleveland re¬

signed as President and Treasurer
and disposed of his holdings in

Ohio P. S. Pfds.

the

Collin, Norton & Co.
MEMBERS

Ribakoff of Worcester,

company,

Haber

tor

Toledo

Feb. 26 at 7 p.m.

is interesting to note that,

It
as

of this writing, there are no
Ohio

new

-'
Assistant

and
Marjorie Meil, Chairman of

Savings, will be toastmaster,
Miss

of the
chapter, will represent the women:
Miss Meil also is with Society.
committee

women's

Minter is Assistant

Cashier of the

Cleveland!'

Bank of

National City

municipals in

sing.

the

couple

of the
Fourth War Loan Drive. It has
been
interesting to note that
selling of municipals this year,
even during the drive, was less

because

the

extensive than

included

and

success

1942

much

less

•

1943,
Ohio

names.

—

Gordon

admitted to. partnership

Seasongood

M. A. Hanna Co.

C. Wanner

J. Reis have
in

Ingalls
Building, with Gordon Reis. Louis
&.

Mayer,

& Peter E. Schwindt

continuing with the firm.

Cunningham succeeds S. Pres-

modest profit in

late

other

been

has

con¬

publicity given in an¬

column of

well

there

the "Chronicle",

elsewhere

the

independent
trader, who has headed the
exchange's rules and arbitration
elected Vice-President of the

mart and a member of the board

for

fact

three-year

Birchard

Superior & Ishpeming R;R.
•

Manufacturing Co.

•i

retire from the
market
some
$4,160,000,000
of
totally and partially tax-exempt

Treasury

Gottron

Co..'

was

tion

Acting Sec¬
B. Whitcomb, serving somewhere in the
South Pacific, was renamed Sec¬
retary.
f
!' 3 •
retary.

Cecil

Colonel

■

Ohio

mrnmmm

Municipal Price
Index

by investors of the constant

}

We Buy

-v.V "

1.37%

1.53%

1.21%

.32%

1.38

16, 1944—

1.55

1.21

.34 ;

Merrill, Turben & Co.

UNION

CLEVELAND

Commerce BIdg.

CLEVELAND
Tel.

Main 6800

Ohio

.34

1.57

1.23

.34 ;•

1.42

1.59

1.24

.35;■

Nov.

1.39

1.57

1.22

.35

Oct.

1.39

1.58

1.21

.37]

1.43

1.62

1.24

.38

1.44

1.63

1.25

.38

1.68

1.32

.36 !

1.97

1.55

.42 "

•

Aug. 18

„

Union

Central BIdg.

1.50

1.76

Jan.

1, 1943

1.83

2.01

1.65

.36

■

Jan.

1. 1942

1.92

2.13

1.70

.43

1, 1941

1.88

2.14

1.62

.52:

Jan.

J. A.White & Co.

Mar. 16

Jan.

For Our Own Account

CO.

T"!'tvpe
29

Cincinnati 2, Ohio

Cleveland Stock Exchange
CV

594

14, OHIO

Teletype CV 67

1.22

1.40

15, 1943—

1, 1940„

2.30

.Jan.

1, 1939

2.78

3.33

Jan.

1, 1938—

2.98

3.42

July

2.58

2.01
t

2.24
2.55

.57;
1.09

.87,

Foregoing compiled by J. A. White, Cin¬
cinnati.

Investment Securities
Union

1.56

Dee.

'V-V).

Municipals

BUILDING

COMMERCE

1.39

Jan.

Com.

Wellman Eng.

Perfection Stove Co.

Union Cent. BIdg.
CINCINNATI

Treasurer

and William J. Perry.

Government securities. A realiza¬

National Screw & Mfg. Com.

Members

Russell

Gillis,

re-elected

will

INCORPORATED

Tele. CV 174

Co.

that by June 15. of this year, the

Common

wm. J. MERICKA &

Tele. CI 150

Mr.

Sep.

OHIO

Field, Richards & Co.

Prescott

Ray L. Lamb, of Merrill, Lynch,
Pierce, Fenner & Beane, leaves
the post of Vice-Pres;dent. Rich¬

Feb.

Lake

Jnion Com. BIdg.
CLEVELAND

with

O.
the

board, also for three years.

Feb.

National Screw &

SECURITIES

term.

renamed

was

Date—

Joseph & Feiss Co.

1943, the first

floor

ard

Increasing in
Importance

siderable

193J

cott Ely of Curtiss, House & Co.,
who was elected to a three-year

was

Tax Exemption

Partnership

committee for the past four years,

of months than in the past two,

Now

are

will,

there

liquidation of

be less

post he held

a
and 1940.

meeting that the exchange showed

chapter's Victory Chorus will

The

Common

that

and

Change,

time in several years.
Daniel Baugh III,

supply of bonds continues quite
limited

CLEVELAND, OHIO—Russell I.
Cunningham of Cunningham &
Co., has been recalled to the pres¬
idency of the Cleveland Stock Ex-

on the board of governors.
Mr. Ely reported to the annual

It J.

for subsequent months.

probably

Vice-President of the Society for

the

Day,

Presi¬

term

is monotonous to report that the

Pritchard,

and

Head Of Cleve, Exch.

for

scheduled

issues

even

Cleveland Trust Co.

9-2432

Chairman

expected,
general reoffering was made.

speaker
will be Ernest
noted humorist and

James

Reserve

dent of the Federal Reserve Bank

was

philosopher, who will talk on the
"Safety Valve of Sanity," an ad¬
dress delivered by him in every
State in the country,

Federal

Cleveland, will be host

to the conference. William A.

to banks and other

Robert Rosse,

been

New. York

Fourth

conference

sale for the whole of March, or

The

CINCINNATI, OHIO

BOwling Green

Tele. TO 190

chapter's 42nd an¬
will be held

in Hotel Statler

Reis,* Jr. and Thomas

Exchange

Adams 6131

chapter of the Amer¬
of Banking, an¬

the

nounced

Re¬

Cleve¬

Cunningham Elected

| was reoffered

nual dinner meeting

The
distribu¬

■

(Associate)
Chicago Board of Trade
Associate Members New York Curb
Stock

system 30 years ago.
J. Fleming, President

the

Bank

of
the
market
the strong bid¬

the investors, but,

Institute

products,

New York Stock Exchange

Cleveland

Vice-President

meet

Matthew

This sale,

said.

processor and
flat-rolled steel

company,

OHIO—Paul

CLEVELAND,

CINCINNATI 2
Tel. Main 4884

Jjs

Annnounce 42nd Dinner

ican

Kidder, Peabody & Co. of Bos¬
Ohio Util¬
ities Commission to purchase $4,-

Pfd.

Hatfield Part

AjS

Pfd.

Co.,

Carey

AIB Cleveland Group

$2,600,000 Boston Metropolitan District,
Mass., refunding bonds due 19451969 on a bid of 99.919 for the
issue as 1 % s and
reoffered at
prices to yield - 0.35 of 1 % to a
& Co. and associates won

Presi¬

—

Federal

Saturday and Sunday, Feb¬
26 and 27, for the first time

Reserve

although it was the
largest liquidation of Ohios dur¬
ing the rlrive, was of little impor¬
tance, however, for the bonds
mature only this year and next
'year. A large part of the bonds

and Halsey, Stuart

& Co.

Otis

ruary

OHIO
12

since the founding of the Federal

four items,
.

MAIN

land

the

banks will

serve

IV4S.

for

of San Francisco, announced the
meeting would be resumed in
Washington for two sessions on
Monday and Tuesday,
Besides Fleming and Day others
attending are: Allan Sproul, New
York; W. W. Paddock, Boston;
Alfred H. Williams, Philadelphia;
W. S. McLarin Jr., Atlanta; Hugh
be used to buy Governments in Leach, Richmond; C. S. Young,
Chester C. Davis, St.
the drive.; The fund has been as4 Chicago;
sured that high prices would bd Louis; R. R. Gilbert, Dallas; H. G.
Leedy, Kansas City, and J. N.
obtained for the bonds, and such
assurances
were
proven correct; Peyton of-Minneapolis. *
The list was made up of 65 blocks
of bonds, and one dealer pur¬
chased all of the bonds except

by Lehman Bros, at 100.0699 for
the issue as 23/4S.
First Boston

Coolidge & Co. was

nicipals, all Ohio issues, at

'2-5% Bonds of 1968

CLEVELAND,
dents

ding for these bonds, there hav¬
Otis & Co. of Cleveland was ing
been
11
bids
for
l%s
third among a half-dozen bidders and three for IV2S.
The Teach-i
for $5,000,000 first mortgage 30- ers Retirement System of Ohio
year
bonds of Northern States decided late in the War Loan
Power
Co.
Otis Co. bid was Drive
to
sell
some
$1,531,000
101.747 for the issue as 2%s.
of its bonds which 'were about to
The winning bid was submitted fall due, the proceeds of course to

Power Dist.

101.19

strength

indicated

is
*

of the

To. Meet jit Cleveland

and

9-1-45-54

serially
at

realization

Fed. Reserve Heads

during
$160,000 Barber-

sold

were

Government

only natural to expect
same

suc¬

month, was
sold Feb. 7. The bonds

mature

strength of other

with

ton bonds

Treasurer.

now

54, of

Post

Assistant

the Ohio formerly

of the Bond
of Cleveland and Army and

the

(Continued on page 802)

consequence

any

the American
Legion. He has three sons in the!
armed services: James, corporal
in
a
Commando
regiment; Lti
Robert,
a
bomber pilot,
and
Charles, air corps student.

Request

Consumers Public

He is a member

Navy

3-5% Bonds of

Maynard

Club

sues

Co.

'Circulars

this

veteran in Cleveland investment banking circles,
head of the new Cleveland office opened by
Hirsch, Lilienthal & Co., large New York brokerage firm,- The office,
ified investments, both municipal
located in the Union Commerce Building, is the nirieth to be oper¬
prices and activity should improve
ated by the company.
further in the immediate future;
Mr. Dyas left the Cleveland office of Blyth & Co., where he
had been associated since 1936, ,to$
- 1
Recent Ohio Sales
cake his new post.
He began his | has headquarters
at Cleveland
The only sale of new Ohio is¬
career in investment banking with
and warehouses in Lyndhurst,
appointed

been

has

for Banc-Ohio Corp., now

OFFERINGS WANTED

that

cessfully completed for this drive,
with the return of thousands of
investment dealers and salesmen
to
their
usual tasks, and
with
investors freer to consider divers¬

Carl E. Dyas,-

•

Ohio

that,
financing

the

issues

list.

seem

expect

Government

the

Ohio Brevities

It would

Drive.

reasonable

OFFERINGS WANTED

such

than

pronounced

Third

the

in the recent

tor

finished was no

drive just

The

exception, although activity in
municipals may have been some¬

York

Troster, Currie & Summers,1 New

Open Wire to

CV 496-497

CHERRY 0260

probably been an important fac¬

ities.

(Incorporated)

SECURITIES

OHIO

OTIS & CO.
Terminal Tower

prices strengthened quietly but yet noticeably, although activity was
course
reduced as investors
considerable
disappearance
and
dealers
alike turned their and
attention to Government secur¬ of such tax-exempt securities has

Trading Markets in

Request

ESTABLISHED

prices have been going higher gradually, even during
Drive. In each of the previous drives, municipal

nevertheless

Debentures '57

5*/2%

been apparent in the Ohio

strength in prices has

Continued

BROADWAY

NEW YORK 6

Teletype
,CI

163

Telephone .
Parkway 7340

'-Composite

index

lower grade.bonds,

SSpread

between

grade bonds.

for

bonds,

+10

tio high grade bonds.,
high

grade

and

lower

Volume

159

Number 4258

SXyXv.;:;

WM.
'///Ai

;!;Xv'v'

with that

HEpendent and for his life and
is so small helpless, So de¬
on you

well-being. And yet
at

you are

able to look

"Someday he
Put it

it down

down

may

the wisdom of

foolish sentiment. Put

Maybe

envision for jour

out

;or"Me, rise

of the three million babies born

Whether

the next—or the

not

year

make his

own

is that here, in America, he is born

with bther

""""

OHIO

/' *

ever

men

have

responsibility

pride

his

day he

responsibility

birthright as an individual.

;anp

RAILWAY

'Supfort the

•

all, under law,

son

own

obligations

yours

others.
your

he will

bend his knee before dicta¬

may

teach him, he

day look with that same fool¬
his

own son to say,

"Some¬

be President—"

Ohio Lines

Cleveland, Ohio

I CK E L

[Ainerkan Red

PLAT E

ROAD

;

efforts,

learns at
or not

And because of what
you

enterprise

may one

same

were

tion and tyranny.

ish

;

knee will decide whether

and freedom for his business that marks

I|, i '/>"
AND

his own battles,

you

by limiting all to mediocrity

assuring

What that

too

The

CHESAPEAKE

—instead of

inseparable front freedom; And that if

high
mat¬

better served

way.

he should demand the

position is not so important. What

by bread alone. As • if the country

fail,

conscious of their

he joins

have

always have bread"—as if man lived

yotf will train him to

'You will teach him that

as you

equal chance to rise by their

after.

he attains'this

shall

fall, according to his

think for himself j to
fight

child won't make: it. But

hear,

opportunity for the certainty that

tradition of self-

succeed

i Because of; that^

child, very much like him, will. One

this year—or

may

heard, voices that say, "Surrender your

byvmj efforts.

possibility of his attaining, o^e

your

government,

who

is preferable to the ambition of

reliatfce^w^

parental pride. But where else

day, the highest office in the land ?

child

many

the few. He is born in

be President,"

in the world could you

ters

felt that in

win
as

child the

one

men—men

the

him and say—

Someday he

opportunity; He is born in the

stubborn tradition of free

•

MARQUETTE

PER I-

Cross Drive for Blood Do-nations

■

RAILWAY

THE COMMERCIAL &

798

Trade Beacons After The War

Mutual Funds

«'

•;

1' "

'''».<?/'vA'*

* M

' u

««

OuMH-Towners At Cgo
Bond Traders Dinner

,4 *' * I v

has' demonstrated that it can

The United States during the war

New Offering

Thursday, February 24, 1944

FINANCIAL CHRONICLE

in peacetime, which
means that "with able leadership and a reasonable amount of team¬
This week Distributors Group announced a new class of Group
work" the people of this nation can meet the challenge that they will
Securities, Inc., known as INSTITUTIONAL BOND SHARES.
The face after the war, Joseph C. Rovensky, Vice President of the Chase
sponsor reports that this new offering is unique in the mutual fund
National Bank of the City of New York, declared at the Mid-Winter
field. Institutional Bond Shares is described as "an investment in a
'S::-Trust Confer-^—w
?
—
diversified and continuously supervised group of bonds."
ence
of
products,
cotton
and
the finished
j. "All bonds in this group meet
American other export commodities move
the legal requirements for in¬
Bankers Asso¬ out is an encouraging aspect of

produce vastly more than it has ever done before

•

vestment by life insurance com¬

panies, or by savings banks,
the State of New York."

Low Priced

Shares-

points out that Institutional Bond
Shares is "designed primarily for

A Class of Group Securities, Inc.

class,

income and capital."
Gaston states further that

Mr.

Waldorf-

soil,

Prospectus on Request

class should

new

TIONAL BOND

of every¬

price

the

knows

who

SHARES."

nothing."

thing and the value of
."War Surpluses

and the Prob¬

mechanical ability can accomplish.

people are being trained in
of our tools and products,
with the result that new habits
are forming and new desires are
being created.
The result may
well have a tremendous effect on

These
the

Hugh W. Long & Co. announces
"New
Service
on
Industrial

Disposal" is the sub¬

use

Steel Industry—

■

"Our

"This
that

They will be able to pro¬
products and distribute
them more widely because it is

war.

only

(4) Goods in process and semiprocessed materials which may be
-

taken

over

when

contracts

"From

diminish.

and undeveloped
acreage,
camp
sites,
training
areas, bombing ranges, etc."
pointing out the many
dangers and uncertainties in this
situation, the survey concludes on
the following optimistic note: "If
the problem of war surplus dis¬
posal is handled with due regard
to American business, it should
constructive influence in the

transition, both the interval after
the

war

with

Germany

and

the

The

counts.

that

deter¬

can

includes

list

is a very elusive girl.
She can only be won on merit.
There will be places for private
credit and government credit.

studying these problems of
credits
for post-war trade
we
bankers must not get lost in the
maze of sectional and group in¬
terests.
Our world approach must
be for the benefit of our nation

.■

•'

:|t

current
the
"Trustee's Problem in 1944." The
discussion hinges on two points
which are perhape
of greatest
concern
to trustees today.
The
first is the problem of securing an
adequate return without undue
risk, and the second is the prob¬
lem of providing adequate super¬
vision at a time when supervision
Keystone

issue

in the

Corp.

•

discusses

Keynotes

than

essential

Corp.

various

and

ever

be¬

issue

rent

points

trustee

acceptance

"clinch"
the

Prospectuses

upon

draws

and

Freybe In New York
Carl
the

engaging in

Freybe is

business

securities

fices at 33 West

from

these

rail

attention

The

ceeds.

"C"

York City.

as a

whole, and it must be one of
with

collaboration
dominate

desire

control

economies."

:"-V t:

•

■

tJ. iu

A class of
Group Securities, Inc.

;

bonds
-

Union

;

An investment in a

diversified and

continuously supervised group of bonds.

portfolio

diversifica¬

tion of Union, Bond Fund "C" at

All bonds in this group

present is: rails, 48%; utilities,,
44.7%; industrial and cash;-.7.3%

the

steel industry.

review begins with

This excellent

hundreds

the statement:

are

meet

legal requirements-for in¬

vestment

panies,
in tbe

by life insurance com¬

by savings banks,

State,of New York.

of years

Prospectus may be obtained

encouraging to hold¬

of steel stocks.

from Authorized Dealers or

(

example—"The fOrebodings;
competitive position of
steel seem based on certain fal¬
lacies—or at least on insufficient

-Research Corporation
120
LOS

BROADWAY.
ANGELES,

CHICAGO,

634

NEW
S.

YORK,

(5)

Spring St.,

(14)

Post Office

208 So.

Square (9)

La Salle

St.

the

to ;• certain
from the
paragraph:
"If the DowJones Industrials are taking into
consideration good industrial ac¬
tivity in the post-war era, the
present prices for steel shares

(4)

facts."

given

being

And

;

quote

final

seem

to reflect a somewhat over-

pessimistic outlook for this fun¬
damental part of our economy." /

of¬

42nd Street, New

attractive
fund for reinvestment of the pro¬
Bond Fund

weight

request

National Securities &

BOSTON, MASS,

For

BOSTON,

STREET,

John

Bond

policy
to
reasonable amount; of,

profits

reached

Securities Semis

K-l, 2 in Preferred Stocks

59 CONGRESS

-.v

iron has
been the most widely used; of tall
the
-metals."
The
conclusions

The Keystone Corp. of Boston

Institiitional
•

investment

sound

ers

Prospectus may be obtained from
your local investment deale* or

National Quotation Bureau.
McRury.
- if.
Hecht, Butler-Huff & Co.
Irwin Harris/'-Scherck
Richter Co.
• e.
Harry J. Peiser, Ira Haupt & Co.
Emm°t J. Brennan, Brennan, Kinsella & Co.
Chester Kolkoski, Schouten, White & Co.

Lou Walker,

might: be

bulletin suggests that it

"For

S-l, 2, 3, 4 in Common Stocks

V-:

Certificates of Participation in
Trust Funds

Series

Richter Co.

Profits?-' The

Keystone

Custodian Funds

Series

V-

of' Abstracts "What to

Do About Rail Bond

In the current issue of jPerspec-;

B-l, 2, 3 and 4 in Bonds

Scherck,

Dot.ts, Bioren & Co.
G. Ghysells.:
Wallace Kingsbury, Kingsbury, Alvis & Co.
John M. Beyer, Quail & Co.
Harry G. Williams. Quail & Co.
Fred G. Morton, Milwaukee Co.
Parnev Nejman, Carl Marks
Co.
Thomas Graham.
Bankers Bend.

Russell

Announcing
■yl

almost

suggests that
tive, the investment management
Custodian
department
of Calvin
Bullock
Funds are particularly appropri¬
analyzses the post-war outlook of
ate in solving. these two problems

Series

Henry Richter,

"In

individual
from observation of phys¬
plant,
there is
a
larger holdings (270) is in " Kbystorie
B-3.
equity for railway share holders
in physical properties than at any
Lord, Abbett asks in the cur¬
time in history."

Keystone

be great after the

Capt.
Ford
Hardy,
formerly Merrill Lynch,
Pierce, Fenner & Beane.
Wm
Dyer. E. W. Price & Co.
Paul Moreland, Allman, Moreland <fc Co.
Mrs.
Ora
Ferguson,
Merrill
Lynch,
Pierce,
Fenner & Beane,
Willis Summers, Troster, Currie & Summers,
Corwin L. Liston, Prescott & Co.
E. M. Everham, Baker, Simonds & Co.
Claude Porter, Baker, Simonds & Co.
Eldridge Robinson. Baum-Bernheimer & Co.
Grant Feldman, Piper, Jaffray & Hopwood.
bernie Dccheine, Milwaukee Co.
Bert Homing, Stifel-Nicolaus
& Co.
Clarence Blewer,
Dempsey-Tegeler & Co.
Harry Tenenbaum, Peltason-Tenenbaum, Inc.
C. Edward Mercier, Baker, Simcnds & Co.
Gee. J. McDawel, Baker, Simonds & Co.
Jerome Tegeler, Dempsey-Tegeler & Co.
Joseph Sener, Mackubin, Legg & Co.
Winthrep Fizzinl, B. W. Pizzini & Co.
Wm. Perry Brown, Newman. Brown & Co.
Frank Meyer, First of Michigan Corp.

ical

the

investing their capital as follows: -

type of trustee account and

every

fore.

Keystone

for

however,

present

fact.

of saying
American

by way

18 were;

Fusz, Fusz Schmelze & Co.
Pelyseiv, Adams & Peck,
Maynard Rue, J. M. Daln & Co.
Jerry Crans, Brown & Co.
VV. J. Brady, W. J. Brady & Co.
Jan Hunt, White, Weld & Co.
Robert Torpie, Merrill Lynch, Pierce, Fenner &
Furman

the largest number of

Housing

After

all

mine

(5) Foods, textiles and other
supplies to be disposed of when
the
needs
of the armed forces

(6)

Railroads—

are

cancelled.

this

all

demand

than

Mr.

years,

war," he stated. "As a counter¬
part of this development, oppor¬
tunities for the extension of credit
will increase very rapidly. Credit,

duce more

dence

investigations lead
that at the end of

field

believe

the

products will

1,000 Certificates of
Participation
in
the
Keystone
the present war, a decade of great
Funds, representing a current as¬
prosperity for the steel industry set value of $4,367,500, are held
will eventuate."
in fiduciary or institutional ac¬
us

later

Rovensky declared.

(3) Finished products that can
bQ used for civilian purposes,
such as trucks, cargo planes, mer¬
chant ships, etc.

trade

world

through achievement of a
greater
national
output,
not
a
ject of National Securities & Re¬
Selection" by means of which through higher prices, that we can
search Corp.'s current issue of
confidential reports of the well as a nation increase our national
Investment Timing.
income, avoid the perils of infla¬
"Aside
from
armaments, for known industrial engineering or¬
tion and carry the great burden
which
no
domestic market is ganization; Kerr & Co., to Man¬
hattan Foundation, Inc., will be of debt which will be on our
available except as scrap, the
made available to affiliated deal¬ backs after the war."
surpluses ,.,. will probably com¬
The flow of trade back and
ers.
Two such reports, one on the
prise six major groups;
steel industry and the other on forth across the oceans, to new
(1) Plants, equipment, machin¬
undeveloped areas of the
the railroads, are summarized in and
ery and machine tools, represent¬
the current issue of The New York world, with raw materials and
ing an investment of approx¬
some fabricated
Letter.
goo$s flowing in,
imately $15 billions.
The KOir reports on these two while industrial machinery and
(2)
Raw
materials,
chiefly
industries concludes as- follows;- r
steel, copper, aluminum and other
of the Keystone Funds as evi¬
metals.
lem of Their

American way

appeal to—
i"(a) individuals, for their re¬
DISTRIBUTORS
serves, or when a defensive posi¬
thinking,
tion in the market is desired;
either
on
an
GROUP, Incorporated
:" (b) corporations, for their re¬
economic or a
serves (income, from Institutional
63 WALL STREET—NEW YORK
social and huBond Shares is received in the
Joseph C. Rovensky
manitarian ba¬
form of dividends and is 85% taxsis, to project
period following cessation of the
exempt to corporations);
the war-time rate of "superproentire war."
"(c) employee benefit trusts;
Citing the relationship between duction" into the post-war period.
{"(d) lodges, schools, churches, value and
"Nevertheless,"
he continued,
price as the test of
unrestricted trust funds, etc., and
whether or not a security should "we have demonstrated that this
in general to all types of semibe purchased, National Securities nation can produce vastly more
professional investment advisers
than it ever has done before in
who
have the
responsibility of & Research Corp., in arecent
issue of National Notes, discusses peacetime.
That is a striking eco¬
investing for others. Many such
the
"high current return and nomic fact, an encouraging fact,
investors are primarily concerned
because it means that with able
opportunities in selected
with safety of principal and are profit
and
a
reasonable
willing
to employ
professional discount bonds and preferred leadership
stocks." The discussion is opened amount of teamwork the people
management only within definite
of this nation can meet the chal¬
and conservative
restrictions of with a pungent quotation from
Oscar Wilde—"A cynic is a man lenge that they will face after the
the type applying to INSTITU¬
this

dinner of the Bond Traders Club

of Chicago on Feb.

Beane.

sky continued.
Each American base on

Hotel.

Astoria

stability

foreign
working model of the
of life, is another
Mr.;, Roven¬
sky spoke on interesting aspect of war-time de¬
"Trade
Bea¬ velopments from the standpoint
of our future foreign trade, Mr.
cons After the
said.
Native labor
War".
He Rovensky
pointed out which has been enlisted on a large
that it would scale is observing at first hand
American ingenuity
and
not be sound what

the

announcing this
Kenneth S. Gaston,
President of Distributors Group,
letter

the

new

ruary

Mr. Roven¬

future foreign trade,

ciation on Feb¬

ILL.—-Among the
annual

CHICAGO,

out-of-town guests at the

GROUP

niSTRIBl TORS
I

63 WALL

STREET, NEW YORK 5,

N. Y.

other

Volume 159

Number 4258

THE COMMERCIAL & FINANCIAL CHRONICLE

799

Property Protection in Wartime
AS tory,time wartime effort on the home front seems small by comparison.in the mightiest invasion of hisdraws near when our armed forces face their supreme test
i the
any

Nevertheless, the task of America's fighting men and her Allies is I of such
of

magnitude that

every ounce*

whatever

way we can

strength of mind and hand that we in this country can muster to their support in
is necessary and imperative.
This is
STATEMENT

why the fire insurance industry has been and is

December 31, 1943

war;

which have amazed the world with their

Cash in Office, Banks and Trust Comv

pfldlcs

•.

,•,

♦

materials

20,681,229.69

United States Government Bonds

27,406,591.91

All Other Bonds and Stocks

69,192,150.38

First Mortgage Loans

•

....••

productive

power.

Through this vigilance, many disastrous fire losses have
been prevented—losses which in wartime, when manpower and

ASSETS

ADMITTED

now

why it is alert through its inspection and engi¬
neering facilities in protecting the nation's industrial plants
geared to

has

376,083.48

Real Estate

3,825,040.10

Agents* Balances, less than 90 days due

are so

vital, would have been

victories. Thus, in a
meant

real

sense,

damaging

as enemy

watchfulness in fire prevention

participation in the winning of the

war

by the

9,265,751.61

"industry which protects other industries."
..Meanwhile, the agents; and brokers of the capital stock fire

Reinsurance
Recoverable

Paid Losses'

Other Admitted Assets

•

1,286,831.00
73,214.65

Total Admitted Assets

•

insurance business,

as part of the Citizen Army, are a source of
strength throughout the nation. By seeing to it that property;
is adequately insured, national morale is promoted, permitting
greater concentration on tfie war effort.

.$132,106,900.82

LIABILITIES
Reserve for Unearned Premiums

.$ 49,199,317.00

•

Reserve for Losses

.......

Reserve for Taxes

.......

5,130,000.00

Reserve for Miscellaneous Accounts

part into

1,005,540.16

38,176.37

FundsHeld Under Reinsurance Treaties

Total Liabilities Except Capital $ 68,859,761.53 !

Capital
Surplus

...

15,000,000.00

48,247,139.29

Dollars for fire insurance

premiums today are going in large
U. S. Government Bonds, thus helping to bear the
cost of war. This Company, for example, invested all of its new
premium dollars during the last nine months of 1943 in War
Bonds, in addition to its regular purchases of these securities.,
;

13,486,728.00

•

☆

•

Surplus

Regards Policyholders 63,247,139.29

Total

...

.$132,106,900.82

■

submitting herewith our annual statement we take pride
in stating that more than 50% of the male employees of The
Home Insurance Company; are now with the armed forces.

Note: Bonds carried at $3,528,921.20 amortized value
and cash $50,000.00 in the above statement are

deposited

required by law. All securities,

have been valued in accordance with the

quirements

of the

National Association

re¬

Insurance Commissioners. On the basis of act¬
ual December 31st market values, total

Assets

would be increased

Admitted
$135,422,810.53

President

and Surplus to Policyholders would be in¬
creased to $66,563,049.00.
.

directors

Lewis L Clarke

William S. Gray

Herbert P. Howell

Robert Goelet

Guy Gary

Gordon S. Rentschler

Edwin A; Bayles

Frank E. Parkhurst

Charles G. Meyer

Wilfred Kurth

William L DeBost

•

Harold V. Smith

Harvey D, Gibson

Frederick B. Adams

THE HOME ☆

(

George McAneny

;

☆

NEW

YORK

•

AUTOMOBILE

TEE HOME, THROUGH ITS AGENTS AND BROKERS, IS AMERICA'S LEADING

INSURANCE PROTECTOR OP

AMERICAN

MARINE

HOMES AND THE HOMES OP AMERICAN

INDUSTRY,

■'

Bought —-■ Sold

ANALYZED

Money Problem In Planning

Quoted

—-

REVIEWED

The

stocks

Insurance & Bank

Booklet Service to Dealers & Brokers
daily 7 a. m. to 5 p. m. (P. C. T.)

3. Public

New York

Chicago

TELETYPE

By E. A.

Seattle

San Francisco
«
L. A. 280

27!)

Slocks

Bank and Insurance

tions.

VAN DEUSEN

This Week—Bank

Stocks

the

growth has been

Strangely enough, this

reserves.

judge from

going on under the very nose of a market which, to
Standard & Poor's index of New York City bank stocks,
to have ignored it. ? In
high, low and average

largely

index

this

appears

the

1939

respectively

were

Bank and

the

Over

New

Members

130

York Stock Exchange

Teletype—NY 1-1248-49 ;
Trading Departments

Bell

and

also have been
substantially augmented, though
by an unknown amount.

while,

Operating

Security

Profits

coveries

and Und.

Profits

Downs

$66,450

$5,880

$36,739

(000 omitted)

1939.

$109,069

83,323
_

33,015

1,925

118,268

8,280

44,138

86,154

1940
1941

$4,517

27)438

11,880

125,472

65,850

25,620

34,002

125,639

65,250

36,256

24,133

2,139

106,674

61,150

3,032

139,719

61,412

90,741

12,433

22,465

1942

96,020

8.515

1943

V 110,954

25,733

65,850

29,969

Not^ Included

All The Essential Problems

considering the general lay

for democracy:
Money; what kind of money

25,657

depend On.*
Foreign exchange relations.
4. Production and foreign trade.

can

Totals

$35,926

$139,244

accompanying table shows
of the banks' earnings

The

the

$549,671

—

sources

$158,655

$385,962

$724,841

$180,224

and Trusv
National Bank

Central Hanover Bank

Chase

Company,

Wages and employment.

Corn, Exchange Bank anc

Taxes.

Chemical

earnings.

these figures

Insofar
as
possible
have been compiled
on
a
comparative basis year by
year,
and bank by bank, but
inasmuch as the method of report¬

and Trust

Bank

Trust

Bank,

ing has varied during the period
and no two banks report strictly
the table makes no claim
precision.
It is believed,

alike,
to

however, that in general the fig¬
ures
portray
picture.

net

Total

fairly

accurate
profits

operating

aggregated $549,671,000 and
total dividends $385,962,000, thus
dividends have been earned 1.43

have

times

It is of interest to observe

alone.

this

how

profits

operating

net

dividend-coverage-ratio

greater each succeed¬
ing year, as follows: 1938, 1.24;
1939, 1.26; 1940, 1.31; 1941/ 1.39;
1942, 1.57, and 1943, 1.81.
True,
dividend payments have declined
from $66,450,000 in 1938 to $61,has

grown

412,000 in
$5,038,000,

1943, a decrease of
or 7.6%, but the ratio

increased

has

from

1.24

1.81,

equivalent to a rise of 46%.
To
put it another way, if 1943 divi¬
dends

1938,

were

the

same

coverage-ratio

pany,

Company, First National
Guaranty Trust Company
Irving Trust Company, Manufac¬
turers Trust Company, Naticxia!
City Bank, New York Trust Com¬
pany, Public National Bank anc
Trust Company, and United State:
Trust
Company.
Other banks
such
as
Commercial
National
Continental Bank and Trust, Em¬
pire Trust, etc., could be included
without in any way altering the
picture,
The conclusion reached
by this writer is that the market
is
overlooking something good
when it passes up bank stocks in
so
cavalier a fashion, for among
New York City bank stocks today
some

of the most attractive long-

term

equities are available to the

alert and discriminating investor.

N. Y. Analysts To Meet
Alan

Hastings, Vice-Presi¬
Engineers Public Service

dent of

will

discuss

"Future

Values

Engineers Public Service," at the
meeting of the New York Society
of Security Analysts, Inc., to be
held on February 25th.

1943

tal&T Total earnings from ^
TotlCOeTrPnTnl^h all
1938.

offhe^F oYL^Chairma^n^thf
will sneak

'pLn^inf'SmUtee
on

"Labor's Post-Wax

«7?4Cfle4i nnn *eported' than twice held February the meeting to be
$724,841,000 or more aggregated Planning" at 28th
dividend
ance

and

disbursements; the bal-

has been credited to surplus
undivided profits and to re¬

serves,

substantially

shown in

the table.
The

New

City

banks

whose

companies

fhfrfv

? Y

York

will

held

Broad Street at 12:30 p.m.
It is also announced that

trip

through the
public
Aviation,
stricted,

fig-, security

has

been

analysts

field

plants of
normally

Re-!
re¬

arranged for
that field

are*

Bankers

ank

Trust

°£ the i ing to take the trio should
touch

with

William

Company,, Goodbody & Co.

get in

Swartz

enterprise

regulation

government

and con¬

trol.

others

Many

64 Neu) Bond Street, W. /

Without
long
term

the
of money other ef¬
build prosperity will
in

TOTAL ASSETS

future value
forts

enduring

lack

£108,171,956

and fall

purpose

(»■s

apart.
Associated Banks:

States Should Take
Establishing Sound
Currencies

United

Post-War
In

Glyn Mills & Coi

prob¬

foreign trade the

our

Ltd.

Bank,

Deacon's

Williams

the Lead In

of money again is the first
essential.
If the dollar is stabil¬

Australia and New Zealand

present gold value
and foreign buyers have curren¬
cies at a greatly reduced value,
our prices will be high relative to
their currency and their depreci¬
ated currencies will act as a tar¬

NEW SOUTH WALES

lem

ized

iff

its

of our

the purchase

against

goods.
Oh the other hand, our
high priced currency will buy
more of
the foreign currencies

and

purchase of
foreign goods at low prices and
encourage

our

tariffs
foreign
of the

apt
as
a
reduction bf
against the importation of

The very essence
trade problem is
money and the respective pur¬
chasing powers of the different
moneys in the different countries.
goods.

whole

foreign

there is nothing
gained by devaluing a cur¬
In fact, every bit of evi¬
dence and history indicates that
an unsound money reacts against
the country of such money un¬
favorably.
Unsound money un¬
settles domestic trade and confi¬
In the long run

baTjkTof
ESTABLISHED 1817)

Paid-Up Capiic!
£8,780,000
Reserve Fund
6,150,000
Reserve Liability of Prop._ 8,780,000

•

£23,710,000

30th
£187,413,762.

•Aggregate
Assets
v
Sept., 1943

DAVIDSON, K.B.E.,

ALFRED

SIR

General Manager

George Street, SYDNEY

Office:

Head

Wales is the oldest

The Bank of New South

largest bank in Australasia. With over
in all States of Australia,' in
New" Zealand,
the
Pacific
Islands,
and
and

branches

800

service

and

investors,

interested

travellers

and

complete

most

the

banking

efficient

traders

offers

London,

countries.

ever

these

LONDON OFFICES:
29

E. C.

Threadneedle Street,
47

Berkeley Square, W. 1

Agency arrangements with Banks
throughout the V. S. A.

NATIONAL BANK
of EGYPT

suggested by
be success¬
analyzed and plans made
reconversion to > peacetime

Speaker

fully
for

are

prosperity.

these

all

policies

essential

reconversion

problems

for

post-war

and
busi¬

there is no problem more
important than that of money. In
fact, it seems that money is the
central
problem
around which
many
of
the
other problems

ness,

why- is money so
Bssential? All other economic re¬
Just

lationships turn on money- Costs
and prices are in terms of money.
Credits of all kinds are promises

> Wages are paid
Trade is. in terms of
money. Savings and investments
are
in money, and their present
and future values are measured
to

pay

money.

and- the- purchasing

mone/
of

power

money.

fidence

the

Without con¬
and
thrift and

present,

future value of money,

discouraged, and
corporate efforts
long term planning are sub¬

enterprise

are

and

dued

discontinued.

Uncer¬

future value 'of
money
is
a
most
destructive
force that creates stagnation and
waiting, and nullifies leadership
and cooperation. The eternal hope
tainty about the

that

makes

for the

men

the

to
a

costs

strive to provide

future, for old age, and for

production

Cairo

RESERVE FUND

£3,000,000

■

£3,000,000

William Street, E. C.
all the

Branches

principal

Towns in

EGYPT and the

SUDAN

is:

confidence and
country in its

and

its

NATIONAL BANK

rela¬

of INDIA, LIMITED

tions with other countries.

This problem of a sound money
and what price money we are to
have is of especial importance to
United

States, not only be¬
problems of re¬
conversion to peacetime
prosper¬
ity cluster around it; but because
at the present time there are so
many good reasons to be suspi¬
cious of our future money policy
other

that it would be

LONDON AGENCY
and 7 King

any

affairs

all

the basis of eco¬

stability,

domestic

that

and

answer

same

CAPITAL

FULLY PAID

sound money is

cause

successful

Commercial Register No. 1

balanced economy,
or in any way improve the well
being of its people by manipu¬
lating the value of, its money.
Every
investigation
into
these
activities and experiences leads

the

of Money

Place

The

its

lower

bring about

nomic

essen¬

seem

tial if the problems
the

exports
by
cheapehing its
money and by selling its goods for
less than cost.
No country has
been able to raise its * prices or

Cairo

Office

Head

its

added, prosperity in

could

additions

these

but

individual

™conipilt 1Yl this .Members of the Association wish-

Manhattan Company, Bank of New

York,

Meetings

na¬

debt.

Freedom

the

disposition

8. The

tional

cluster.

those of

the

freedom

and

Prices

markets.

Com¬

reported to their stockholders,
and also the disposition of these

confidence

Smithfield, E. C /

Charing Cross, S. W. /

Burlington Gardens, W. I

the

soundness of the money.

riod of time been able to increase

nomic policies

15,555

52,650

;

rests

progress

dence.
It paralyzes foreign trade.
Each country naturally tries to
prosperity of the future, it seems protect its trade against the un¬
that the Speaker might add to
fair manipulation of currencies.
his list of problems the following:
No country has for any long pe¬
1. Education
on
sound
eco¬

Write-

Dividends

Total

nomic

problems for post-war re¬
conversion, employment and the

and

Surplus

8 West

real social security is em¬
ployment at productive enter¬
prise. This employment and eco¬
only

out of

Reserves

yrit;--...v.,.*

Net Re¬

$22,078

The Sneaker Has

Bishopsgate, E. C. 2

rency.

prosperity.

In
-Disposition■Y

that

statutes

Federal

reserves

it:

post-war con¬
no
doubt

are

pealed, in order to give business
enterprise freedom' and to en¬
courage the maximum of effort
for
the
post-war
reconversion

(L. A. Gibbs, Manager

Net

which will retard

learn:

should be modified, and even re¬

Telephone: BArclay 9-3500

$82,474

many

post-war

many

BROADWAY, NEW YORK 5, N. Y.

Sources of Earnings

1938——-

factors

these

and which will aid

Laird, Bissell & Meeds

Year—

version. -There

059,000,

Net

re¬

tard, and which will aid success¬
ful post-war conversion. •
The Speaker has already sum¬

utes

Unlisted Issues

capital,
surplus and undivided
profits, have risen from $1,439,as reported on Dec. 31,
$1,643,831,000 as reported
on
Dec.
31, 1943, a growth of
$204,772,000, or
14.2%.
Mean-

will

which

learn

Federal

Examination

statutes

which will examine Federal stat¬

Inquiries invited in all

period
comprising

1938, to

the

protecting

points to be considered
planning for pros¬
perity.
Not the least of these
points, and perhaps the most im¬
portant of afl, is the .last one,

Stocks

same

funds,

capital

their

sale to
impact,
public in¬

essential

Insurance

shows
15 banks,
operating
earnings,
exclusive of security
profits and recoveries, were $82,474,000 in 1938,* but since have
steadily risen year by year to
$110,954,000 in 1943, an increase
of
$28,480,000,
equivalent
to
accompanying table, which

the

terest.

figures for a group of
it will be noted that net

34.6%.

while

marized

101.5, 81.9 and 91.1; in 1943, they
were
96.6, 76.5 and 90.5.
In the

the confidence in
the future value of money. The

war

of their
economic

channeling

minimize

throughout Scotland

LONDON OFFICES

ities rests upon

The

of, surplus

OFFICE—Edinburgh

HEAD

Branches

and favorite char¬

their families

commodities by thevGove^hment;

of the operating reports of leading New York City banks
over the past six years reveals a remarkable record of steady growth
of earnings, accompanied by a substantial strengthening of capital
and

enterprise;

;
. ;
V.
release

The

A study

resources

fields

speed at which they can be
put in operation, and their laborabsorbing quotient; V
5. Resumption of foreign trade;
the possibility of new world mar¬
kets; coordination with rehabili¬
tation efforts of the United Na¬
the

WIRES

first.

federal, state

works,

New

St., Los Angeles

PRIVATE

which

and local.

CALIFORNIA

210 West 7th

categories

materials should go

critical

BUTLER-HUFF & CO.
OF

selection

materials;

2. Allocation

Orders solicited.

Inquiries invited.

Incorporated by Royal Charter 1727

(Continued from first page)

Special Bulletin and
Trading

Royal Bank of Scotland

APost-War Economy

COMPARED

Thursday, February 24, 1944

FINANCIAL CHRONICLE

THE COMMERCIAL &

800

one

Bankers

the Government in
Colony and Uganda

Kenya
Head

Office:' 26,

Bishopsgate,

London, E. C.
Branches in India,'Burma,
Colony and Aden and

Ceylon, Kenya
Zanzibar

Subscribed Capital____£4,000,000
Paid-Up Capital
£2,000,000
•:

Reserve

The

Bank

Fund_..____—£2,200,000. '
conducts

Trusteeships

of the great¬

every

description

banking and exchange business

and

Executorships

also undertaken

est services that Mr.

his

committee

Rayburn and
could perform
if

they could only establish the fact
that this country will maintain
sound money based upon

gold at its

oresent well known metal content.

information

This

would be

dividuals
bonds

confidence

and

great relief to all in¬

who

Government

own

who have bank

ably exceed $500 billion,

and this

than we estimated our
national wealth to be before , the

is?

war

began.

Just how we are to

support this vast debt and gradu¬
ally
reduce it, without in .the
meantime seeing the price of the
bonds decline sharply, is a puzzle

deposits
who own to the layman. If and when the
insurance.
Almost,, everyone is prices of these bonds do decline,
asking this question;., what. is to. that is nothing to worry 'about,

savings accounts

the

future

value

money?. provided the holders, do not part
with the bonds; but cling to them
until maturity, when they will be
The
very \ magnitude
of ' the paid at par. Unfortunately, how¬
ever, in a very great many indiroresent Federal debt raises ques¬
tions as to the future value of vidual cases, this Us not practical.
money.
The debt is expected to Moreover, in the case of the com¬
c

The National Debt.

reach between $250
lion

peacetime
fected

and

overcome.
iebt,

and

and $300 bil¬

by the time reconversion to

business

can
Government

This
states.

debt,

ef¬

deficits

plus the

munj^^aiit'Vs

private enterprise, will prob-

mercial

banks

who

have

pur¬

chased these bonds with deposits,
a

sharp

these

decline in the prices of

bonds would be serious.

possible,
war

however,
over

that

the bulk

when
of the

large short term maturities held

Volume 159

by the banks
financed

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4258

meantime, however, the
cost of servicing the debt and;
the]
costs of meeting current Govern-'
ment expenses are going to require a tax income perhaps twice
that of pre-war days. / Taxes are
a
direct
charge upon business

friend of mine (Mr. Arthur

In the

fol¬

Opposition) said the other day in
the
House
of
Commons
that

shillings and pence are
meaningless symbols,' This made
me
prick up my ears and open
'pounds,

/'What then are we to say about
savings of the people?
We
the incentive to private enter¬ have
just begun a 'Wings for
prise.
Too heavy a burden of Victory- war savings campaign,
taxes is not practical.
But, be to which all classes have sub¬
that as it may, it remains a fact scribed.
Vast numbers of people
well as discourage

the

that when the
conversion

is over and re¬

war

completed, deficit
financing will have .to be not
only a thing of the past but very
substantial capital payments may
have to be made

encouraged to purchase

have been

War

Savings

come

tax

wage-earners

the

from

collected

In¬

Certificates.

certain level

and
carried to a nest-egg for
the oUtstand-' them at the end of the war, the

ing

debt, if confidence is to be! Government having use of the
maintained in debtor instruments.5 money
meanwhile. A
nest-egg
;
Then there - is the .problem of similar in character will be given
the

large increase in bank depos¬
resulting- from •-•; Government
borrowings or the bank purchases
of Government bonds.
By the
time reconversion ; to peacetime
business takes place, these bankf
deposits will all have been trans¬
formed into private deposits and
♦Will be the private possession of!
private individuals.. The assets to
pay
these bank deposits, with'
will be pretty largely the Government
bonds i owned by
the
banks. These bank deposits are
all payable in money*
This vast
quantity of peacetime purchasing
power in the form of bank depos¬
its holds a great potential danger
if and when depositors choose to
use
this money for business or
speculation.
At present the ve¬
locity of bank deposits is said to
be less than 20, as against 56 in
its

r
-

/
'

1929.

"Those whose houses have been

destroyed

damage,

raid

have

who

and

air

cases

many

insurance, are entitled to
compensation.
All these
obligations were
contracted in

paid

their

pounds, shillings and pence. (Mr.
Greenwood's

'meaningless

sym¬

this

there

bols.')
will

end

war

eight million
people in the country wfth two or
three hundred pounds apiece, a
thing unknown in our history.
These savings of the nation, aris¬
ing from the thrift, skill or devo¬
tion
of individuals, are " sacred.
The State is built around them,
and it is the duty of the State to
redeem its faith in an equal de¬
gree of value.
"I

seven

not

of those who

one

are

wedded to

There

It is

hoped that Mr* Rayburn's

committee

Government will
sound

other author¬

some

itative committee

of the
come

national

forth with

of converting our
monetary debt and tax situation
to a peacetime basis. Unless this
a

plan

seems

be¬

reason

number of

lieve that England will not make

effort to maintain honest
money and that simply means re¬
turning the pound to as near as
possible its pre-war purchasing
every

rights

vs.

property rights, with emphasis

just beginning to settle the Territory and there
of us. We brought in live-«>-

were not

very
—

stock,

trailed anybody from the rear

range

that

controlling large areas of
through homesteading all
livmg water—some squatted upon
much

200
square
miles,
1,000 square miles,
by every trick we could think
we tried to hold the respective

others

and
up

for ourselves and drive all

areas

others off. The grass went to who¬
ever could get his stock to it first.

simply committing sui-

was

cide.

There

and

cows

put upon human rights. Possibly something that occurred around the
beginning of this century may throw a little light upon this subject.
In the Territory of Arizona some
forty odd years ago people
were

lots of

were

(The rabbits,) So they are
Somebody looked after the

gone.

I suppose you have and I know I have

years

heard much about human

deer, ante-

still have beef.

And through the years I've no¬
ticed that property rights are con¬

tinually being
strikes

down

restricted
few

pound by

making

some property rights and
today an income tax of 93% will
just about complete the job. When
this job is completed that we're
going through today somebody is
going to wake up some fine day

find

and

himself

back

spot and just turn around

one

kill

and

the

100 rabbits

with

.22

about.
to

But

wish

how they

they had

time; endeavors.
"

•

.r-o.

■<

?■

vestors,

For

likewise

long time the world
has looked with admiration and,
in some instances, with jealousy
upon
the
successful
monetary

very

of J England.; The
to England and

management
of

flow

money

confidence

the

British

owners

life

and

British Policy

The

cur¬

and the pound sterling in
peacetimes have been the
subject of many studies and in¬
vestigations.
It
seems
evident

going
property

360-degree circle.
If the -rights then,
,
v//;
meat for breakfast,
Look at Am Tel, selling around
or supper, all she had to
$150, $9 dividend/money a drug—
t

wife wanted

Our speeds were not great—four
miles per day for a band of sheep
between dawn and sunset — two

dinner

miles

market

hour for

per

four-horse

two-ton load.

Five

miles per hour for a saddle horse.
If we traveled by day we had to
use landmarks or a compass—by

night the North Star. The nearest
neighbor was seven miles away,
the second, 15. Twenty-five miles
to the railroad on one side, 200 on
the other. We navigated a sea of
land*

Not

fence for hundreds of

do was say so

and in 10

utes she had it.

15 min¬

But soon, in came

hunters

California

from

and out went the game. Men came
in and out went the wild horses.

They

catch

would

1,000
wild
only ship

horses

and

100 out

1,000, the balance
trying to get
But nobody
They didn't belong to any¬

killing
out

cared.

sometimes

of the

themselves

the

corrals.

The Forest Reserve came in and
with

fall

ship all marketable stock
City or Chicago and the

to Kansas

commission

for

draft

Arizona

would

men

the

bank

and

would

down and write out
and the

mail

proceeds

sit

few checks

Our

help was paid when he
quit—after a month, a year, a year
and a half or two years.
We just
signed a piece of paper and took
him to town.
He would fight for
us—some even died for us (imag¬

objected

strongly

Indian killing a cow for

his sup¬
per, which if he were hungry and
as long as the cow wasn't his, he
was 'quite
likely to do—human
rights first was his; motto too.

And

live

band of

sheep still only

travels four mil^s a day (as
they *
did thousands of years ago) in the
age

of General Sherman tanks and

Flying Fortresses.
W. C. EVERETT.

Feb.

15,

1944.

have

this

idea

D. E. Graham Forms Own

Investment Firm in N. Y. C.
David

one

should

with

come

them

while

and

Graham

partner¬

business under the firm

name

Interesting Situation
Jersey Central Power & Light
Co., 5Vz%, 6% and 7% preferred

stocks
offer
attractive
possi¬
jump ahead of starva¬ bilities, according to a discussion
of the situation in the current is¬
tion. They hold property in com¬
sue
of
the
"Preferred
Stock
mon
so
why work if one has to
ine a corporation employee today
divide; with everybody else.
So Guide," issued by G. A. Saxton &
dying for his boss or trying to
Co., Inc., 70 Pine Street, New York
there is minimum production.
help the boss -save the business) .
One may drive an auto 300 City. Copies of the "Guide," which
Some of us couldi hit a turkey's
head at 100

yards three times run¬

there was very little kill¬
ing for the simple reason that no

ning,
one

could afford to start anything,

would get cured quickly for they
are

just

one

miles through Northern Arizona
today without seeing one rabbit in

the

entire

trip—and

but still we never allowed anyone

happens when

put ahead.-

get

behind

and we never

that

is the

finest example I know of, of what

human

one

also

and

contains

current

quotations

comparative figures

policies

rights are stocks, may be ftacl upon request
looks after from G. A. Saxton & Co.

and

the

world's

monetary and financial
markets,
while
we
and
other

rency

inate the world's finances and de¬

normal

serve
that place and confidence,
irrespective of the size of other

this

that

based

•

the

upon

ently

based

standard

been
run

can

upon,

Time

has
and

gone
her

•

been

thing .that

only

ever

performance.

England

has

confidence

•

perman¬

and that • is
and again,

the

off

currency

gold
has

depreciated, but in the long
the pound has "always been

returned to

the value of 113.0015

grains of fine gold. ; It has' been
performance and Confidence,'
built up Over more than 100 years,
that has enabled England to carry
the role not only of guiding bilt
that of dominating the monetary;
•and financial world in the march
this

it«s unrationed

countries deal in vacillating, un¬
certain, undependable monetary
practices which do not deserve
confidence,
then
the
British
money market will again dom¬

of trade. It may be- that
land of today is not the

the Eng¬
England
'of pre-war days. It may be that it
•will
take
longer to return to
•sound

economic

and

monetary

policies than after financial dislocations of the past. But, be that as
'it may, we know something about
1

-what
the

British

the

British

ideas

are

and

policy'is going to be.

This'

was

ister

Churchill

stated

by Prime Min¬
in. his

radio

financial
of

markets

trade

the

other

You

the

post-war

re¬

world.

Any

worthwhile

construction

and

"points"

life insurance. What

volume

parts

don't need

give

you

ration books to buy

need is the willingness

something today

have to give up

so your

family won't

everything tomorrow.

conversion

pol¬
enterprise
which would maintain prosperity
must build aroundv^he problem of
icies

sound

money

and

peacetime

money,

Without

sound

in which people

invest and count

can

their

a value

purchas¬

known at the time of

power

saving

post-war

Prudential Representative

Help You Guarantee Their Future

save

upon

somewhat related to the

the

dependable

savings for the future, at
ing

Let

opinion.

and

investment,

economic

policy,:, will

succeed.

The CHRONICLE
ments

Dr.

the views

invites,

7
com¬

expressed by

Wright, in this article,

related ^phases of the sub¬
ject under discussion.
Comments

any

should

addressed

Editor,

"Commercial and Financial Chron¬
icle.'.' 25 Spruce Street, New York

ad-, JB, N. Y.

PRUDENTIAL
/

WAS THE
[STRENCTH Or
ffi/MAlTAfl

pre¬

ferred and common public utility

convertible

confidence

D. E. Graham & Co.

human

out here and

ship with M. R. Appel has formed
D. E. Graham &
Company with
offices at 120 Greenwich Street,
New York City, to engage in aft
investment business. Mr* Graham
was formerly a partner in Fuerst.
& Co. and prior thereto was in

rights dominating property rights
but

earning $10 to $20

that

Indians

year's work was over.

railroads

share and selling among the cats
dogs. Therein is a story for
those who wish to read.
a

and

Winslow, Ariz,,

one.

somebody looked after
the
forests
and
stopped
over¬
Interest rate was i% per month
compounded semi-annually, gro¬ grazing. That part of Arizona to¬
day which is in the Reserves is as
cery bills were paid once a, year
or so.
We had no use for cash. In good or better than it was 40 years
fact, it was dangerous to have it, ago, but that cannot be said for
the range outside of the Reserves.
known that any particular in¬
That is ruined by having to reduce
dividual carried money regularly.
the grass to possession first.
About all we ever did was in the
•

the

British bonds

insurance
the

the

are

some

done, these threatening prob¬ into
gold*
If England does this
lems hang over all other peace¬
and regains the confidence of in¬
■

back

wrecked

and again stabilizing the

power

sit-

—

years

lope, bear and rabbits which be¬ jungle, where we started from
longed to whoever reduced them with his human right to starve
to possession. A man could stand and no property rights to
worry

The devil took the hindmost.

miles.

"At the

team with a

the armed forces.

to
;

undue rigidity in the
management of the currency sys¬
tem; but this I say, that over a
lion, against $4 ^2 billion in 1929. i period of ten or fifteen years
Neither
the
currency
nor
the there
ought to be a fair, steady
bank deposits can do any harm as
( Continuity of values if there is to
long as they are held inactive, be
any faith between man and
but should the public be excited
man, or between
the individual
into using this large purchasing
and the State;
We have success¬
power within a reasonable length
fully stabilized prices during the
of time, the very stability; of a
war.
We jntend to continue this
sound recovery program and re¬
policy after the war to the utmost
conversion
program-, would
be of our ability."
jeopardized*
The
currency
outstanding at
the present time exceeds $20 bil¬

For

many

my eyes.

them.

Rights vs.Property Rights

Editor, "Commercial and Financial Chronicle":

Greenwood, leader of the Labor

and reduce the value of business

enterprise,

Human

.•'

lows:

ties and sold to investors.

March 21,; 1943,

dress

and will be re¬
long term maturi¬

can

into

801

q/fe prudential

INSURANCE

COMPANY, OF

A mutual

HOME OFFICE

AMERICA

life insurance company
NEWARK, NEW JERSEY

Thursday, February 24, 1944

FINANCIAL CHRONICLE

THE COMMERCIAL &

802

curbing the inflationary menace
of Government securities by the
all the bonds the
Government wishes to offer, but every dollar of Government secur¬
ities that the commercial banks acquire increases bank deposits and
portfolios

preventing

and

Ohio Municipal

inherent in uncontrolled purchases
commercial banks,

Woodruff, Hayes & Company
v:

135

SOUTH LA SALLE

INSURANCE COMPANIES
INSTITUTIONAL INVESTORS

F. P.

E. A. Sheffner

Geo. R.

Military Service

*In

On Governments"

"Our Reporter

the

Bond Market In Wartime

By WILLIAM A.

expenditures

war

banks

commercial

mand.

The Government

ever

through unrestricted sales of securities
rigidly limited, . . . The banks are
encouraged to concentrate their surplus funds in short-term issues,
preferably in the one to five-year maturity group and in any event
not in issues maturing beyond ten years. . . . A pattern of interest
rates on Government securities ranging from % of 1% for three
months, % of 1% for one year, 1 lk % for four to five years and 2%
for seven to nine years has been in effect for the past two years
and new security issues have been allocated according to the matur¬
ity classifications best adapted to the prevailing investment de¬

nancing

W. A. Sholten

Douglas Hayes
Schneider

Woodruff

Woodruff*

For the banks can absorb

country. . ..The greater the
monetary supply, the lower the purchasing power of the national
currency or, in other words, the higher the cost of living. . . .

INVESTMENT COUNSELLORS

E. P.

therefore the monetary supply of the

BANKS,

AND

(Continued from page 796)
>
declining supply of tax-ex¬
empt investments will have a bol¬
stering effect on prices for totally
I
• •
"
The very wide powers of the Treasury Department in the man¬ tax-exempt- municipals.
agement of our monetary system are being applied with effectiveness ; Moreover, at the4 recent mid*
and ability.
The easy but potentially dangerous course of fi¬ winter meeting of the Ohio Bank*

STREET

CHICAGO 3, ILLINOIS

several

from

comments

note

country bankers to the

effect that

some, have just realized
amount of their tax bill

that the

for 1943
higher than in
previous years.
SomO
banks who, have not heretofore
paid income taxes, are now find¬
ing that tax-exemption is now of
materially

was

1942

considerable value to them.

♦

this year

strength in the partially tax exempt Government
issues constitutes a corrective movement after the gradual decline
The

Most

expect that their tax problem for

CORRECTIVE PRICE ADVANCE

SHOLTEN

Association it was interesting

ers

last

recent

year,

will be greater than for
and still greater next

•year.
Moreover, some of the
$27 billion and the in these issues that began last August and continued until the begin¬ smaller banks, who; have in the
from the depths of the severest ning of
February, and which had been caused primarily by sales on past been in the lowest tax brack¬
economic depression in its history, it was widely feared that unless the part of the mutual insurance companies and savings banks which ets, have found to their surprise
some limit soon were placed on the continuously increasing indebted¬
were taking advantage of the premium on these bonds to sell the tax
that they are suddenly in a higher
ness, the, resultant credit inflation would have ruinous effects on the
exempts and by the longer term taxables. . . . Thus, today, as has tax bracket.
national economy.
;
At that time the belief was expressed that been mentioned
above, the long-term tax exempt issues are again at ; As a result of these higher tax
the country would not be able to support without serious strain a
their best price (or, to put it more accurately, at their lowest yield)
bills; and ever declining taxnational debt greatly in excess of $40 billion. ...
levels.
The banks, especially those in the maximum corporate tax
exempt securities, many banks
Nevertheless, the debt continued to mount as Government ex¬ brackets are finding it increasingly advantageous to buy the tax are belatedly becoming munic¬

Ten

when the public debt was

ago

years

United States was about to emerge
>

penditures were expanded far beyond revenues with the deliberate exempt Treasury bonds.
intent of providing the inflationary spark which it was hoped would
Another factor that has contributed-to the demand for these
stimulate economic recovery, ... By the middle of 1941, the debt had
bonds has been the relatively rapid rate at which the total supply
increased to $54 billion; in the next 18 months national defense
of tax exempt Government securities is diminishing, . * . Less
expenditures under the spur of a world at war carried the debt to
than 25% of outstanding Government issues are exempt from the
$62 billion, and from , the day when the attack on Pearl Harbor
normal corporate tax and by the end of this year the percentage
plunged us irrevocably into active participation in the war, the public
will be less than 20...
Maturing tax exempts are being refunded
debt had soared at a hitherto unprecedented speed to its present
Into taxables and those holders to whom the tax exemption is
level of about $182 billion, an increase in two and one-quarter years
important are inclined to exchange the maturing issues for

ipal conscious.

...

Lower Grade Bonds
As

than four times the total debt out¬

prosperity under peace-time conditions could
expensive methods than those deliberately
pursued by Washington in the nine years preceding Pearl Harbor is
now of academic interest; the fact is that wfe entered the war with
an already heavy burden of national debt but that from that point
on, all economic considerations had to be subordinated to military
have been attained by less

requirements.

be said: after more

can

than two years of fi¬

nancing the costliest war of all time we seem to be
with relative ease a national debt that will almost

supporting
reach $200

end of the present fiscal year. . . . Furthermore,
the tremendous volume of Government securities issued has
been absorbed to the extent of 54% by investors outside the
banks with no disturbance of the securities markets and to the

billion by the

■

for example, occurred at the time when the injection of
2s 53/51 temporarily influenced the market position of
the 2s 52/50 and 2^ s 54/52 or as is about to occur in the case of the
bonds,

extent of 40% by the banking system with an inflationary effect
of negligible intensity. . . . The process of channeling over $120
billion of securities into the nation's investment reservoir without
compulsion

resort to

only

of coordination

now

are

evidently approaching the peak of our

governmental

marke't

moves

probably two impor¬
for this declining
spread. In the first place, there
is
probably a growing feeling
There

tant

are

reasons

among

investors

generally

that

thought about the future market per¬ all municipals are good. The fal¬
Some believe that these bonds will not
lacy and the danger of such think¬
advance more than a few thirty-seconds above par principally be¬
ing have been discussed at length
cause the banks cannot acquire them for; the next two years, and
in
a
previous
article in the
that therefore the market action will approximate that of the long/'Chronicle." Suffice it to say here
term 2V2S which are also closed to the oanks.
Others are convinced that one should be increasingly
There

among

effort and if the war in Europe should end

whole

FUTURE PRICE TREND

the commercial and invest¬
ment banking authorities, but a superb job of administration by
the Treasury Department and the Federal Reserve System. . . .

public and

58/56.

newly issued 2y4S 59/56 in their relationship with the 21/>s

noticeable pressure indicates not
between Government and

even

yield than the high grade bonds.

the Treasury

of cooperation

degree

high

ing and so many varying factors that operate now for and ai ahothef for 10 high grade Ohios stood at
time against one type of maturity or another that the opportunities 1.21%, compared with the high of
open to every institutional holder for increasing the income from his •1.20% set for that group last fall.
Government portfolio by intelligent interpretation of market varia¬ The spread in price between these
tions are if anything more frequent today than before. . . . Such two groups has gradually declined
variations take place most, frequently during periods preceding the until now the lower grade bonds
issuance of new securities which affect the presently outstanding are selling at only ,32% more

much

This

Ohio "municipal

the

higher, it is
interesting
to
note
that high
grades have not been rising as
whatever tax exempt Government securities they can obtain.
much as have second grade bonds.
The scarcity value of the tax exempts will therefore become in¬
This fact is reflected in the in¬
creasingly marked as time goes on. .. .
dices shown in this Ohio section
Although the control of interest rates exercised by the Treasury under the heading "Ohio Munic¬
Department has had the effect of reducing price fluctuations in ipal Price Index." This index for
Treasury bond prices and therefore eliminating in large measure the 10 lower grade Ohios set a new
temporary price discrepancies between issues of similar maturity high of 1.53% on Feb. 16, 1944,
groups, there are so many issues of Government securities outstand¬ while as of that date the index

Whether economic

Spread

Between High Grade and

of $120 billion, equivalent to more
standing ten years ago. . . .

Declining

Danger

are

two schools of

formance of the 2V4s 59/56...

productive

this year, the volume of

expenditures -—and in consequence the issuance of

borrowings—may be expected to decline that, despite the present elimination of bank purchases of these bonds, cautious of falling prey to such a
in the next fiscal year.
It is reasonable to assume, therefore, that they will advance to the approximate yield level of the 2V2S 58/56.'. feeling as the war prosperity ap¬
in the light of accomplishments thus far, the problem of completing,
Among the reasons why it is reasonable to believe the 2Ms
proaches an end. ^
the financing of this war without major difficulties or strains has
59/56 will move up to 100.16 and higher, are (1) that in a gen¬
The second reason for the de¬
erally strong market such as is anticipated for the next months,
already.been solved.
The market for Treasury securities has not
clining spread in price between
it is easier for one low-priced issue to advance to the level of the
only been maintained—it has actually advanced in all except the
high grade and lower grade

Treasury securities for new
'

...

slight rise in rates
otherwise/. .
Refunding of maturing
callable issues has been consummated at extremely favorable rates

shortest term maturities and even in those, the

rest of the market than for the other issues to decline to the

has been beneficial rather than

of the one low-priced

States is 1.9% per annum,

in 1934.

United
compared with 2.3% in 1941, 2.6% in 1938

interest rate on the public debt of the

and today the average

and 3.2%

The

Government

crepancy

market is

securities

in excellent shape.

in
affected by the injection of

securities with similar maturities or in order to hold at par

new

precautionary measures in order to preserve price stability

specific issues at times when these are
:

the

price level of issues that display temporary weakness, have been
quietly and effectively taken by the Federal Reserve Open Market
Committee in cooperation with the leading Government bond deal¬
ers.
Prices for the long-term issues, which are always subject to
wider fluctuations
than
the short-term securities, are
currently
quoted at or close to their best levels computed on the basis of yield
to maturity or first call date.
The lowest yield on the long-term
tax exempts, maturing or callable in more than ten years was reached
last July at 1.71%. During this past week, the average yield on these
same issues again approached the 1,71% level.
The lowest yield
to date on the long-term taxables was 2.27% in July, 1943; at the
present time the average yield on the same taxable issues is 2.31%.
.

The day to day investment demand or the absence

of the

thereof on
is the

15,000 commercial banks of the country

principal determinant of the price level of Government secur¬
ities.

The banks hold 47% of all Treasury Bills, 60% of
Certificates of Indebtedness, 66% of the Notes and over 40%
.

the Treasury bonds.

all
of

and

States

bank

are

thus

able

will tend

2l4s

to sell the

58/56

map

out

examining authorities and the Federal
including Government issues.

their

programs

new

They

borrowings and

refundings, both with the aim of maintaining the liquidity of bank

These

the

buy

and

2Ms

grade municipal if the;
yield is lcs4/than the compar¬
able net yield after taxes on'
Governments, and then buy a
high

59/56; their sales of the 2t4s 58/56 should be readily absorbed
by the banks, since the maturity is only a little beyond the tenperiod which for most banks constitutes the practical limit

year

Government

the

and

bond

investments.

maturity

59/56

group

banks and insurance companies.

Still
bank's

another

income

appeal
.

The

2*4%

strongly

the

rate

coupon

cause

what

kind

of opportunity for increasing the country
adoption of the policy of investing temporary

There is

tice;

greater

than can be hadi

coupled

nicipal

securities market in the world, there never has been

be¬

it is some¬

with

This prac¬

the feeling;

that even the lower

municipal

the yield on

from Governments.

surplus cash funds in the Certificates of Indebtedness along lines
similar to the daily purchases and sales of Treasury bills by the large
.

inferior

much

savings

metropolitan banks, is receiving increasing attention.

municipal bond is of¬

good/ is

grade mu-'
likely

that compares in scope to the American market in /result/in the accumulation in
•one's portfolio of inferior bonds.
Government bonds and, certificates, nor one that offers, to the insti¬

one

in the past,

tutional investor willing to spend the time and mental effort required
to

study and understand it, the possibilities of income enhancement

with

minimum

risk.

market
■

\ '

and
,

the

complete

•

absence
■■

of
•

credit

;

It becomes increasingly impor¬

tant for

the

investor to compare

quality of various municipals,
and not merely the price/ This

the

fact is true not

Deposit Insurance Corporation to regulate the character and type of
bank investments of all types

are

....

The Treasury Department and the Federal Reserve Board are in
excellent strategic position directly or in coordination with the

National

yield conscious; as the dis¬
in yield in favor of the 2l4s 59/56 is brought home to

they

them,

the part

of the 2t4s 58/56 at the end of 1943.

fered/with the yield after taxes
that can be had from Governments.
As was mentioned in
this
column
last month, too
many investors refuse to buy a

...

professional investors who

are

Such

/which

59/56) is held by investors who are in a position to acquire the
bonds.
Insurance companies and mutual savings banks

new

•/municipals is the growing prac¬
tice to
compare
the yield at

standing 2/4s 58/56 (which most closely compare with the 2\is

alone held 58%

...

MARKET IN EXCELLENT SHAPE

level

bond, (2) that 83% of the volume of out¬

only in Ohio mu¬

Now Frank & Belden, Inc. nicipals, and not only in munic¬
(Special to The Financial Chronicle)
ipal bonds generally, but, today,
Klauber and Edith H.
will be admitted to lim¬
MINNEAPOLIS, &INN. — The in the entire field of investments,

To Admit Partners
Aimee
Klauber

Bigelow-Webb, Inc., for too many buyers are
too
Minneapolis Stock
anxious for yield and too little
Exchange, has been changed to
interested in quality.
^
Frank & Belden, Inc.

ited

firm

ber,

members of the

partnership in E. & M. Klau¬
120 Broadway, New York
City, members of the New York
Stock Exchange, as of March 1st.

name

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4258

159

New

York to Europe, is it not
possible to expect that there will

Future Of Air Transportation

(Continued from page 794)|

vast

increase

European

vacation travel?

gear than would be needed
commercially. We expect that if
licenses are
sought for today's
military transports, it will be
found that their payload is not
practical.
It is therefore our be¬
lief that military-transport air¬
craft will be of temporary value
only, merely to span the period

until

and

new

efficient air¬

planes can be built, and their
Operation will be costly even for
the interim period.
A question of immediate signifi¬
cance

concerns

flood

the outcome of the

with

filed

applications

Aeronautics

meet this
this

The cost of

situation.

transition

presents an added
there should be a

why

reason

final settlement of
war contracts and, even more im¬
portant, another reason why the
and

prompt

Government should at the earliest
date

possible clarify its policies as
in the

air transportation, both
United States and abroad.
to

Bankers frequently

the

ask

about

of airline equip¬
financing.
Equipment

possibility

ment trust

trusts

because

interest

attract

the apparent security

which they
give the borrower and because of
railroad

for

their

wide

permission to engage in air trans¬
portation.
Some of these appli¬
cations are serious, some casual,
and some haves been filed by peo¬

field.

Were these, the only factors

ple who ought to know better.

hand, there

the

Civil

Board

be considered, we would un¬
doubtedly advocate the use of
equipment trusts.
On the other

few of the many ap¬

which

A promotional-minded
Texan has filed an application to
operate a flying funeral service.
Another promoter would like to
operate a flying chicken coop—an
exclusive service for hauling baby

which

plication:

clicks over unstipulated routes.
Then there is the Westerner who

serious problems

are

have

To name

the

use

aviation

encounter

existed

not

with

re¬

spect to railway equipment trusts.
A boxcar is a definable entity. An
airplane is an aggregate of thou¬
sands

accessories

identifiable

arid parts, which very frequently

tures.

disassembled, repaired, in¬
spected and put together again in
a totally different combination.
The equipment
trust situation
becomes particularly complicated
when we think of the problems
involved in securing a proper lien
in all of the foreign lands through
which our airplanes shall fl^. This
problem is surmountable, but the
applicability of equipment trusts
to our industry needs more study
and perhaps legislation before it
can have complete success.
'Air transportation represents a
completely new way; *6f doing
things. It will bring about a new

nity not to encourage uneconomic

fect will

seeks authorization to fly up and
down the walls of the Grand Can¬

in a sort of flying elevator
Not quite so spectacular

yon

service.
is

the

application of. one of the
large surface carriers which pro¬
poses to provide air transportation
to practically every hamlet in the
nation by means of the helicopter,
which has yet to secure its first
commercial license.
Aviation has

great future, but
so great that it

its future is not
-

can't

marred, by absurd ven¬

I urge you as citizens and
members of the banking. frater¬

developments. We do not fear the
Competition of qualified airiine
Operators; we do emphasize that
you who are responsible for the
investments of the American

are

pattern of economic life.
Its ef¬
be felt in every line of

business.

bring

about

creased

commercial
venture

tractive.
r

caution in

asking

word of

not to ex¬

you

pect too much too soon in terms
of

profits

has

industry

transport
factor

The air

dividends.

should

which

growth

fully

re¬

flected in the ultimate value of its
But before these pros¬

securities.

our

business

in¬
not

pub^- only for the airlines but for all

lie should inform that public that

And this leads

accelerate

substantially

volume

merely because;a security bears
the aviation label, it is not neces¬
sarily sound or speculatively at-,

will

entire economic activity and will

shall

enterprise.
•
attempt tonight- to
as to the prob¬

not
a

guess

able future volume of air

because odd

have

contracts?"

war

For the

airline

war contracts
been undertaken on a cost-

local

warehouses

terials

can

items

can

reduced

be secured

Many raw ma¬
shipped in the unfin¬

now

ished state will be processed near
their point of origin and will be

not

to the air-:

loss of earning power
lines.
* 1
r

less

■

from

arises
airline

the

either

percentage

satisfactory

that

fact

has

every

substantial

< a

of. its

condition

net

worth

international fields.
to

the

Government,

erates

war

contracts have

even

its

how

by cash advances from the Gov¬
ernment, the airlines have a con¬

tingent

liability

account

advances' until

and

renegotiation by
Government agencies

final

h§s been^oncluded.
Another

for

audit

all of the
concerned

new

were

war

forecast

It is difficult

international

aviation

persons

were

means.

School

moderate

teachers, with their
made

share of this travel to
modern

vaca¬

privilege
many
of

leisure,

people

free,

large
Europe. Our
up

industrial civilization has

responsibility largely been geared to the twogrowing out of war contracts is weeks' vacation (when you get it).
that every airline has a substan- With overnight plane service from
grave

lines

assure

tion

and

make

to the future

Therefore

and

take

situation

foreign

countries.

realistic look at the

which

America

will

find itself at the conclusion of this

Our

war.

vanished.
this

oceanic

isolation

has

The defense frontiers of

hemisphere lie not along our
but
along the opposite

shores
shores

of the

It is

us.

come

whi<?h

oceans

surrounding

the fervent

that

out

international

will

hope of all

this

reduce

war

may

relationship

the

is
that

expect

company

re¬

coun¬

are going
to need
and lots of it. They will

venture

capital, preferred
financing, and plenty of

stock

credit. The economics and the

quirements

different

are

air

re¬

transportation

from

other business.

those

any

If you are inter¬

ested

in participating in aviation
financing I urge you to become
intimately acquainted with our in¬
dustry.
In no other business is

the

old saying so true: "A little
learning is a dangerous thing.
Drink deep or taste not the Pierian

spring/'
It is

important that the airlines

and their bankers

recognize

now

the monumental size of the finan¬
cial job ahead and be

prepared to

something about it. The pres¬
ent net worth of TWA is
$13,000,000. Our capital
expenditures and

Therefore I say to you

that air
Moses of requirements by 1954 might rea¬
sonably be forecast, for our do¬
can
lead us out of economic wilder¬ mestic operations alone, at $100,000,000. Our company represents
ness and chaos.

American

one

airlines

need

commer¬

depend.

transportation

ment

than

The

of America.

the role

operate

If 18 air¬

single continent,

reasonable

money,

great contribu¬

needed to do the domes-

job in

not

airlines

quired to do the job for our
try on a worldwide basis?

evitably result in aircraft produc¬

.'load

are

tion. But I do say that commercial
aviation can bear a share of the

what is commercially feasible, but
upon the policies of our Govern¬
Let

boundaries?

our

There

the

commerce

which

15%

those who argue

that
responsibility
should, in the international field,
be placed in the hands of a single
company as a "chosen instrument."
I say that this responsibility is too
great to place upon any single
corporation, no matter how well
financed or organized.
It is our
considered opinion that competi¬
this

are

tion

international

likelihood

make

until

routes

of the domestic

industry,

this

figure can roughly be mul¬
tiplied by seven and you will have

tremendous

approximation

the

capital

requirements of the domestic air¬
line system.

Add to that the

quirements
field and

the

re¬

international

begin to realize the
of the job ahead.
This de¬
velopment cannot be stopped.
It
will be made either by
private
industry for a reasonable profit or
size

will

national

greater contribution to our
economy
than will a by the Government for reasons
international relationship shall monopolistic system: Competition of military security.
I believe
that the job can best be done
have been created, and shall have must be
limited
and
by
regulated,
Your continued
proved itself to be capable of yes, but not to the point where private capital.
informed
interest
meeting international
Before passing and
problems, it is nonexistent.
will, ; I
the United $tates of America shall this question of giving the
respon¬ know, be welcomed by our entire
have no serisible course open to it
sibility
for American 'flag
air industry.
of

future

other

But

wars.

than

maintain

fenses.

that

its

de¬
;

;

InJ 1917, ajnd again in 1941, the
United States found that the pro¬
tection given it by the Atlantic
and

Pacific

ognized
still

although
inadequate,

oceans,

A Record of the Confidence

rec¬
was

of 7,000/000

sufficient to give us time to

convert

our
production from a
peacetime basis to a war economy.

The

I venture the forecast that in any
futrire war the United States will
have

than

no more-

which

total

because air fleets become

obsolete.
which

ment

in 1943, a year

$153,420,344.37. Insurance in force increased by $602,365,209.00
making our total insurance in force $6,438,540,577.00, an increase

war.

two

years

the greatest

of well over a billion dollars. These increases were
in the history of the Company. Payments to policy¬

holders and beneficiaries
per

$108,985,001.60

$363,283.00

The

Company's purchases of government securities during the
$150,085,750.00 making our total investments in the

year were

obligations of the United States $349,954,718.75.
These, records

placed

were made possible by the increasing value
life insurance by the people of our country and by the

confidence of

than 7,000,000 policyholders —
policyholders in the United States.

one-tenth of life

rapidly

The production facilities
must maintain are no

Guy W. Cox,

than

President

air fleet

at ;a

were

business day.

only the factories themselves, but
.the machine tools to build as large
an

of the John Hancock Mutual
of Boston is a summary of accomplish¬
of record growth. The increase of assets was

Life Insurance Company

few weeks in

for

prepare

Policyholders

eighty-first annual report

81st Annual
December

and the trained

any,

minimum in

end

this

Total Admitted Assets

$1,441,468,994.05

Total Liabilities

$1,313,454,251.49

General

Surplus Fund

$128,014,742.56

war

not

Total Insurance in Force

faced

with

$6,438,540,577.00

This Company

only with

offers all approved forms of life insurance in large or small
amounts, including group coverage; also annuities forindividuals andpen¬
sion and retirement plans for corporations and educational institutions.

astronomical debt but Amer¬

ican will.; be

Report

31,1943

sizable

continuing obligations.
We shall not surmount this debt

European

the exclusive

whom

summers

gen¬

business?

Prior to the

tions

these

air. transportation

tice

because it depends not only upon

,an

May I offer several illustrations
of

been financed

substantial

volume of air cargo.

in¬

volved in accounts receivable from
or

make

permitted
within

their cial air transportation, both do¬
ridge some 8,000 mestic and international will be;
feet in altitude, down into a val¬ First, to provide a market which
ley, up over another ridge and will maintain aircraft production
into another valley and, finally, facilities.
Second, to
continue
over a very high
ridge, and then pioneering in aircraft develop¬
down to the capital.
The cattle- ment to maintain our leadership
drive
takes weeks, their fat is in military aviation.
Third, avia¬
worn
off and many of them die tion will provide an impetus to
from the rigors of the trip. Little commerce and thereby
promote
imagination is needed to see the post-war employment. Fourth, by
possibility of slaughtering the cat¬ improving
communication
a h d
tle on the, grasslands where they travel, aviation can bring about
are raised and flying the dressed
international
understanding and
beef to its market.
good-will, the foundation of in¬
The most revolutionary trans¬ ternational
cooperation upon
port development will occur in which the peace of the world will

will

semi-finished

sufficient

The

airplanes

over a

acter,

to a single corpo¬
ration, is it not appropriate to in¬
quire why our Government has

driven from

are

pasture up

goods, and inventory fill-ins and
shipments of an emergency char¬

and

'transportation

plants needed for national defense
and will not take up all or even
most of the slack which will in¬

Orderly so¬
ciety of nations, their cost will
still be large. Therefore, America

perishables

aircraft

possible.

demand for

manpower and production "knowplus basis, with nominal fees. The shipped by air in a semi-finished
how'-which will permit the im¬
improved earnings of the airlines or finished state. Perishable food¬
mediate translation of those facili¬
have resulted from heavy com-, stuffs which in many instances
ties into defense weapons.
mercial loads and not from ; war find only a limited market will
While we hope that these de¬
contracts,, Hence, the cancellation find a vastly enlarged market. In
of war contracts will not mean, a the aggregate, these shipments of fense requirements may be kept
•

the operation of all of the aircraft

trans¬

overnight by air.

part,

will

"What about the effect of cancel¬

most

maintenance

commercial

Any nation which fails to main¬
portation. The factors which af¬ tain
adequate defenses in the
fect air transportation are today
future may perish before those
in the making and we should,. I
defenses can be created.
believe, more properly direct our
If this is a correct analysis of
attention to. realizing the maxi¬
the situation, the United States
mum possibilities rather than to
.must not only maintain an air
spend time in arguing as to whose
fleet,as big as any potential ag¬
guess is the best.
As the result of air transported gressor,, but it also must maintain
aircraft production facilities sur¬
tion, there will
be
substantial
passed by none. The creation of a
changes in' buying habits. Markets
huge air fleet will not do the job
will be enlarged.
Inventories in

pects can be realized, a period of
expansion will require the. plow¬
ing back of earnings;
!
Another
important question
which we are repeatedly asked is:
lation of

The cattle

The

production facilities should be fi¬
nanced by commercial enterprise
to the fullest extent

likely that the operating costs of tial number of employees devoted
Another
illustration: if In
the
new transports, which can be built
exclusively to war work.
The capital of a South American coun¬
when the war is over, will be skill and experience of those em¬ try the price of meat is
high and
substantially less than the operat¬ ployees, and of many others like the quality is poor. Two hundred
ing costs of converted military them in the armed services, will miles from that capital, across the
"transports, despite any differences be needed in -our post-war com¬ mountains, are some of the finest
mercial operations. Yet there will
in depreciation charges.
grasslands id this hemisphere on
Military transports were not be a period of transition from which cattle are raised. To get
built to meet commercial stand¬ contract to commercial operations those cattle to market
they are
ards.
In order to carry the over¬ that cannot help but be costly to driven over mountain
passes so
loads required, they were built the airlines. TWA is planning an
rugged that it is necessary to pro¬
with heavier structures, floors and extensive
training
program
to vide the cattle with leather shoes.

landing

803

and

meet

tions

the

continuing

national

obliga¬

defense

and

provide employment by attempt¬
ing to re-establish economic activ¬

ity in this country at its former
low level.

employed—our
must
no

Life Insurance Company

Industrial activity must

be accelerated—our

national

increased.

alternative

responsibility.

men

but

must

income

America
to

Boston. Massachusetts

be
A

COPY

OF THE

COMPLETE ANNUAL REPORT

WILL BE

SENT

REQUEST

has

accept this

★

THE

Michigan Savings & loan Assets

Keeping Pace With War
By

GRANT H.

Executive Manager,

March 29 of

Times

LONGENECKER

Michigan Savings and Xoin League,
Loan Bank of Indianapolis

Home

Federal

Director,

57th anniversary of an indus¬

this year marks the

this greate State of
more to its growth
than the average person realizes.
On March 29, 1887, Cyrus G.
Luce, then Governor of Michigan, signed the bill that give immediate
effect to the statute regulating building, savings and loan associations
which has meant much to the building of
Michigan and which has contributed probably

try

ac-*

their

and

tivities in this
State.
H

o wev

e r,

was

and was spreading rapidly
throughout New England and the

ago

Middle Atlantic States,

not

1887

beginning
of savings and
loan associa¬
tions
in this
The
first associa¬
tion in Michi¬
State.

of the adoption
regulating these asso¬

About the time
of the law

ciations
ment

State, the move¬

in the

spread

over

associations were

Bay City.

the State and
incorporated in

Grand Rapids, Kalama¬

Jackson, Lansing, Port Huron,
ganized under Saginaw, and several smaller cit¬
the general ies; In 1895 the law was amended
gan

or¬

was

zoo,

Income
Of $3,917,000 For 1943 Calendar Year

associations.
Since that time the State char¬
trip to Phila¬
tered
associations
have
been,
delphia.
While there he became
without interruption, under super¬
interested in this movement which
vision of the Department of State.
started at Frankford, Pa., Jan. 3,
(Continued on page 805)
1831, a little more than 112 years
G.

Longeneqker

ing a business

vision of the

31,

which with

tributiori of $1,189,000,

Home Loan Banks for

12 Federal

the

payments for June 30,1943, aggre¬

for the

Federal Home Loan Bank

Home

Federal

System,

Loan

gated $2,022,000 in dividends for; Bank advances made for one year
the entire year.
During the year or less need not be amortized, but
ended Dec. 31, 1943, the net prof¬ when made for more than one
its

Home

Federal

the

Loan

after payment of divi¬
dends and setting aside legal re¬
serve requirements, amounted
to
Banks,

the banks from

their

the beginning

operations through Dec.

31,
1943; aggregated $38,205,000
which' has been distributed as
follows:

$7,695,000 transferred to legal
reserves; $2,123,000 transferred to
reserves
for contingencies; $16,339,000 paid in dividends to U. S.
Government; $5,160,000 paid in
dividends to member institutions;

"Advances outstanding to mem¬

31, 1943,
$110,068,000,
of

ber institutions on Dec.
amounted
which

and up to 10 years, such , ad¬
are required to be amor¬
tized on a monthly or quarterly

year

represented

$69,280,000

balance of

which

advances

short-term

ture within

ma¬

while the

year,

one

$40,788,000 represented

interest

basis.

Dec®31, 1943, $84,-

standing on

secured basis
an unsecured

204,000 were on a

Officers & Directors
The following are

President,

basis.

eligible security amounting; to
$429,000. In addition to this col¬

tion;

;

Vice

Federal Savf
„

Loan Associa¬

lateral, the Federal Home Loan
Banks held a statutory lien on all
stock in such banks owned by
each borrowing member institu¬
tion which, on Dec. 31, 1943, to¬
taled
$18,955,000.
The Federal
Home Loan Bank Act requires
that at no time shall the aggregate
outstanding advances
made by
any Federal Home Loan Bank to
any member exceed .12 times the
amounts paid in by such member
for outstanding capital stock held

Mason,

Thomas

Grand Rapids Mutual

ings and Loan
$25,864,000 on
The secured advances were Association;
collateralized
by
61,897 home First Vicemortgages, the unpaid balances of President,
Which
aggregated
$165,199,000, Joseph G.
obligations of the United States, Standart, De¬
direct or guaranteed, having a troit
Surety
face value of $37,074,000 and other Savings
and

and

officers of the
out¬ Michigan Saving and Loan League;

advances

total

the

1943,

31,

iicL & & I* League
-

"Of

Dec.

of 30 days."

excess

vances

The total net income

$1,112,000.

1868.

through Dec.

$1,130,123,000,' against which re-J
the payments to! that date aggregated
Except for a $1,310
calendar year 1943 amounted to $3,917,000, of which 20%, or $783,000, $1,020,055,000.
indebtedness of one member in
was transferred to the legal reserve as required by law, according
liquidation and a $79,605 indebt¬
to an announcement issued on Jan. 20 by Everett Smith, financial
edness of an association operating
representative of the banks.
The net income of the banks for the
under a conservator on which the
preceding 12 months aggregated $3,903,000. Mr. Smith pointed out
banks anticipate no losses, there
cfiat dividend declarations as of«*>
———■:
.v7,:/ ' ■ •
Were no delinquencies in principal
Dec. 31, 1943, resulted in the dis- Under the rules arid regulations
income of

net

The

requiring the publishing of annual $6,846,000 remaining in undivided
It
was
in¬ reports, the first one being pub¬ profits, and $42,000 direct charges
to undivided profits (net).
spired
by a lished in 1896. Again in 1897 the
Regarding the banks' advances;
Jackson .mer¬ law was amended providing for
chant follow¬ annual examinations and super¬ the announcement stated:
laws

Oct.
15,
1932,
1943, the total
advances made by the 12 Federal
Home
Loan >Banks
aggregated

operations

12 Federal Home Loan Banks Report

State-Federal Chartered

the

Thursday, February 24, 1944

COMMERCIAL & FINANCIAL CHRONICLE

Second
Presi¬

Don W.
Seaton,
De¬
dent,

and

troit

Northern

Michigan

and

Building

Loan Associa-r

tion

Han¬

cock; Secre¬
tary-Treas¬
and

urer

Thomas

Mason

Ex-,7

mature
ecutive Manager; Grant. H. Long-,
up to 10 years, and on which in¬
by it.
enecker, Lansing,. Mich.; Direc¬
stallments of approximately $5,"Since the beginning of their tors, W. R. Crissey, Midland Fed-f
118,000 are due within one year.
eral Savings and Loan Associa¬
long-term advances which

cities, Grand Rapids
the very highest percent¬

boasts one

ciation of Battle Creek, and James

of home-ownership. A significant
share in the credit is due to the service

Home Financing

of this

also appreciates another

the

since

Rivers Building &
Association; Three Rivers.

SAVINGS

record—uninterrupted payment of divi¬
dends

Loan

Mikel, Three

56-year-old institution.

The home town

I:y; VariKeureh; Capitol i. Savings
arid VLoan Co., Lansing; J. B.

Conservative

ages
,

tion;^ Walter: Gehrke, First Fed¬
eral; Savings and • Loan Associa-;
tion of Detroit;. Wendell C. Gates;
Industrial Savings and Loan Asso¬

Since 1890

Among American

founding of

"Your
The

ACCOUNTS INSURED

Grand

Rapids Mutual in 1888.
V

•

; ;■

"v.-.-v';'....*;;•/

Assets

$14,309,628.40

has

FEDERAL

LOAN ASSOCIATION

SAVINGS AND

MICHIGAN

GRAND RAPIDS

FLOOR

1st
.

CAPITOL

ASSN

Home Office:

SQUARE

Serving Since 1893

Surplus funds of corporations, trusts
dividuals
with

Accounts

PONTiAC

us.

earn

and in¬

regular dividends when placed

All accounts are insured up to

$5000.

PEOPLES FEDERAL SAVINGS

STANDARD SAVINGS

and Loan Association

.ASSOC! ATI ON

Griswotd at Jefferson

DIVIDENDS ASSURED.'

★ Insured Savings

LOAN

LANSING, MICH.

ACCOUNTS INSURED—

★ Low-Cost Home Loans
Ho me Loa n s

Association
LOAN COMPANY

Branch Offices: DETROIT

DETROIT

DETROIT,

GRISWOLD AT CONGRESS ST.

MICHIGAN

Detroit 26, Michigan

A Safe Place To Invest Since

1897'

HOLDING THE LINE
-

FOR

ENCOURAGEMENT

OF THRIFT

THRU

SOUNDLY

.'I

■

FINANCED

and Institutions
sound, long1 term investments at better
*

HOME OWNERSHIP

than average

All accounts insured
Write

Industrial Savings & Loan Assn.
7

Capital Ave., N. E.

BATTLE

CREEK, MICHIGAN

•

Inquiries are invited pom Trustees
$ seeking

INSURED SAVINGS AND PROMOTION
OF

■'

for

Circular

yield.

"Your

$5,000

Savings"

THE FIDELITY SAVINGS & LOAN
315 S. BURDICK STREET

investment.

this circular may be

SAVINGS &

BARLUM TOWER

CADILLAC

"Your Savings,- dis¬

cussing the advantages of savings

;:v;\:V

DETROIT FEDERAL
SAVINGS &. LOAN

Savings & Loan
Mich.,

prepared an interesting circu¬

lar entitled

and' loan

GRAND RAPIDS MUTUAL

Savings"

Association of Kalamazoo,

$5,000
v ': V-.C.

Fidelity

ASSOCIATION

KALAMAZOO, MICHIGAN

request

Copies of

Volume 159

THE COMMERCIAL & FINANCIAL CHRONICLE ..'*.10

Number 4258

sites.

inflation In Urban Land

the

the Miami

few

last

vacant

area

relatively inactive until

was

months

and

now

beginning to sell at prices ap¬
proximately the same as those
prevailing three years ago. There
is an attempt to revive the sale of There

In World War II
(Continued from page 786)
89%

creased 25 to 33

tively held down by rent control
to an average of 8% above 1939
rents.
Only the favorable factor
of almost 100% occupancy of resi¬

three years.
The motivation
inducing these purchases appears
to be the prospect of higher rents
after the war, when rent control
is removed and higher construc¬

dential quarters in most cities has

partially overcome the grave dis¬
advantage of a fixed ceiling on
income with a rising trend in
-operating costs. There is another

above pre-war levels, while
residential rents have been effec¬

land

% in the last two

lots

for

ber

post-war homesites with

degree of

some

success

of cities.

Most

num¬

purchases of

land have been

vacant

805

for

pur¬

Keeping Pace With War Times
also

are

continued from page 804)
Federally chartered day, there are

than

associations provided by an act of

such

Congress in the year 1933. Tnese
associations
are
examined
'an¬

States with total

associations

7,000

the

United

resources

.of more

than $6,000,000,000,

nually and under supervision of

Huge Home-Building Job

poses

the Federal Home Loan Bank Ad¬

tion costs which will make it im¬

there

ministration, Washington, D. C.
The object of these associations,

800,000 homes that these associa¬

any, increase in total urban land

whether chartered by the State or
the Federal Government, which

Michigan, they

income on agricultural land, it is
only necessary to raise a crop or
grazfe livestock upon it, but to

possible
to * duplicate
existing
buildings at today's selling prices,
"The rise in the price of 50%
in the prices of medium-sized sin¬
gle-family homes since 1935 in
Chicago,
and
a
rise in prices
amounting to as much as 50%
since 1941 in many war cities, has
been due partly to the inability

produce

to build

marked difference between urban
sites

farms.

and

income

produce

urban land

new

house

to rent an

it is necessary to erect a building

old

the site, and new building,
except for war needs, is now
barred.
Hence, vacant city land,
or urban land with old
improve¬
ments, cannot be utilized imme¬
diately in most cases, and its value

forced to buy homes because they
could secure a house in no other

upon

must

discounted

it is necessary

■

for

later reduced to 20%, as a pre¬
requisite to dispossessing a tenant

tq wait until build¬

it is ready for use.

sites

price advances have also taken
place in some of the resort areas.
The prices of homes

in Miami in
$5,000 to $7,000 class, and in
Miami Beach
in the $10,000 to

The value of

depends

the

the
trends in. the values of improved
properties.
:
;
>
"Nearly all urban land booms
upon

$12,000 class, have increased 25 to
30% in the last two years.

have been preceded by a rise in
the net income and the sales prices
of

At the

same

sions designed for the
have
even
declined

time, homes in areas with
few war contracts or large man¬

existing buildings which stimu¬

lated

new

well-to-do
in
selling
prices because of the difficulty in
securing servants and the high in¬

building, and which, in

turn, created

demand for

land

for

building sites. This sudden in¬
in the rate of absorption of
land by buildings frequently led

crease

expectations of

taxes

come

amount

which

curtailed

the

wealthy have to
spend for household expense.
In

continuation

the peak rate of building at
profitable rents for an indefinite
period. The land boom had barely
reached its top, however, before

even

Miami

the prices of $20,000 to
$30,000 homes have advanced only

10% in the last year, while the
largest homes and estates are sell-

the feverish, rate of

ing for 25 to 40% less than

had

ago.

new building
produced an over-supply of j
houses, apartments, stores, hotels
; and
offices, with the result that
rents would fall sharply and new 1
construction,
being
no
longer,
profitable, would almost cease.
The demand for land for building
.

purposes

would then also fall to

low level, and all the
travagant hopes of high net

very

ex¬

has

values/

been

only

slight, if

In fact, for a number of

reasons

little

very

could be expected.

appreciation
In Manhattan

and other parts of New York

assessed

yet

values

land

City,

have not

been deflated from

the

fic¬

sound and economical

1920's.

In most

homes,

after 1929 still lingers.

ues

new

crop of land buyers does not come
on the scene as
quickly as a new

of stock speculators. It takes
generation to forget a drastic

crop
a

a year

anvancing prices of improved real
estate, apartments, stores, office
buildings and hotels are still sell¬
ing in many cities at prices below
the reproduction cost of the build¬
ing less depreciation leaving no

governmental

with

some

war

agencies,

war

centers

overbuilt

with temporary housing, and with

rationing
store

difficulties.

Outlying

properties in the Miami

have declined

10 to 15%

in the last two years

and

area
more

65 associa¬

were

assets

Today there

are

$27,696,545.
in this State 70

with

assets

rapid rate and lead to

land

boom.

"There
mental

are

reasons

even

funda¬

tod for not expect¬

of the

repeated after this
war.
First, the nation's rate of
population growth and, particu¬
larly the rate of urban population

but the sale

growth,

FIRST EEDERXL

that the

con¬

car owner can

reach the edge

SAVINGS AND LOAN ASSOCIATION;

of the city quickly,
he can speed for miles into an
open country where the area in
successive

concentric

the

investment
loaned

occupied homes.

A safe and

profitable place for

corporations,

;■

DETROIT

and loan associations that become

State can boast of having one or
more institutions.
It is not only

members of the system by joining
one of the
12 regional, banks lo¬

the

cated in strategic centers to serve

large cities that are serviced

by these thrift and home financ¬

every

section of the country.

ing

bank

serving the Michigan

institutions,

one

ings and Loan Associations is lo¬

institutions when mort¬

lending exceeds the invest¬
ment of savings from the public*
these banks also act as deposi¬
tories for the surplus cash of their
member institutions.

Membership

in the Federal Home Loan

home

until,

these

gage

individuals,

Federal Home Loan
and

Loan

Insurance

Bank and Federal Savings

Corporation.

inquiries

are

invited.

GRISWOLD

LAFAYETTE,

funds of
.Member of

reserve

estates.

- -

of all

to-

the assets in the Michigan

associations.
Another

altogether desirable from
city rebuilding stand¬
point as it will make possible
building at lower densities, with
more light and air for rooms, with
more park and recreation space
a

with

and

of the

ciations

may
become members.
$135,000,000 corporation in-*
sures the savings share accounts of
its
member
institutions
against
loss up to $5,000.

This

of the country within the city..
"It seems to me that even with¬

controls there will
inflation in vacant
comparable to that

land

urban

the
competition
of
sites opened up by the
automobiles with unrationed gas.
because

numerous

Because

use

there

the

are

intensity of land
of apartments,
competing sites

case

With the high standard of ser¬

vice that the savings and loan as¬

sociations

are
giving their com¬
munities, and their alertness to
the opportunities offered by
changing conditions, it. can be
easily understood how these as¬

sociations have made such

standing
of

vent

chartered

many

associations

much

this

State

movement

predicted.'

building densities will be reduced
there also.

;

edly advance materially in areas
with unusual advantages, such as,
sites adjacent to subway stations

A stationary or slow
growing urban population cannot

and

will

the

center

congested mass

and

also

disperse

Land prices will undoubt¬

suburban

built-up
the

lands

communities,
widesoread

OVER

$15,000,000

MICHIGAN

prices of large tracts

the commuting area., If de¬
centralization continues, as seems

edge of cities, but

probable,
ASSETS

DETROIT,

rather

over

central

areas

will

con¬

there

the

most of these

purchases will be for actual use,
than

for

speculation,

tinue to lose population and land

evils

values will continue to fall.

probably be avoided."

This

adjoining
and

increases

wild

land

boom

can

iich. Savs. & Loan

League Conference
DETROIT, MICH.—The Michi¬
Savings & Loan League will

gan

hold

its annual

Mid-Winter Con¬

ference at the Statler Hotel, De¬

troit, Friday and Saturday, Feb.
25 and 26.
Y The Conference will
a

luncheon

Fermor

the

begin with
Friday, at which
Cannon, President of

Railroad

Men's

Federal

Sav¬

ings and Loan Association of In¬
dianapolis .vwill be principal
speaker.
,

The

League's general sessions
following the luncheon will be
opened by Walter Gehrke, PresiT
dent of the First Federal Savings
& Loan Association of Detroit. A
principal feature will be

near

recent

rapid

growth
of the building, savings and loan
years,

table

available for these structures

out¬

With the ad¬
new Federally

growth.

cities.

many

agency

Congress in
Savings and
Loan
Insurance
Corporation in
which the savings and loan asso¬

amenities

out any further
be no runaway

Government

created by an act of
1934 is the Federal

social and

continue to form

Out-of-town

Bank

System is represented by 97.37%

than all other financial in¬

owners

Indianapolis. In addition
making available ready funds

of America's fundamental in¬

stitutions. It has made

The
Sav¬

cated in

fast transportation routes in most

ever-expanding
urban
fringe draws people from the cen¬
ter of the city, land values and

til, today, every large city in this

^circles in¬
creases 'with the square of the
radiu.s from the center of tllie city.
the

of
on

have prospered and multipled un¬

A.s

are

created to provide a home
mortgage credit reservoir of funds
for long-term loans to the
savings

snail's pace because

gestion

and

was

will be

itable rents that will absorb land

earnings

By act of Congress, in 1932, the
Federal Home Loan Bank System

ing, savings and loan associations

stitutions put together

factory buildings yielding prof¬

95%

owner

Is it any wonder that the build¬

cities, there is not the press¬
ing demand for nCw office, store

Sav¬

associations : are

these ^associations ' is

totaling

tapering off and that which took place in some Ameri¬
comes from
the land would col¬ prices
of
downtown
business fact has been given such wide can cities in 1836, 1852 to 1855,
lapse like a house of cards."
properties have increased 10 to publicity that it is generally rec¬ 1869 to 1873, 1887 to 1890 and 1922
Since any boom in vacant urban 20% in the last several years.
ognized. Hence, a boom cannot be to 1925. Rent control, which is by
sites is preceded by an extensive
"Office buildings in most cities so easily generated on the premise far the most effective form of
rise in the prices of homes, apart¬ are
enjoying the highest occu¬ of an ever-expanding population. price control because it is en¬
ments, stores and office buildings, pancy ratio since 1929 and not be¬ Second, while there will probably forced by the tenants and by dras¬
-let us see to what extent an up¬ ing subject to rent control, office be a large volume of suburban tic criminal penalties, is the most
ward movement has already taken building
managers
are
raising, home building after the war, the drastic regulation possible for dis¬
area
available for urban expan¬ couraging price increases in resi¬
place in the prices of such im¬ rents.
"The greatest peak of factory sion has been increased in geo¬ dential properties. It will be nec¬
proved real estate.
"Real estate brokers in 287 cit¬ production in the history of the metrical proportion by the auto¬ essary
to remove rent control
ies repqrt an average rise of 12% United States; as a result of the mobile and may be still further after the war, if there is to be any
in real estate prices in 92% of the demands of war, has filled most expanded by the commuting plane.
substantial:am$pnt; of new. build¬
cities in the past two years.
In industrial space and loft buildings With a total radius of 50 miles ing by privateilqhterprise because
and caused rises in rents, notwith¬ from the center of any metropolis,
construction costs, together with
Chicago, Mr. Max Fuhrer, a prom¬
inent appraiser and architect, esti¬ standing the building of $15,000,- there is a supply of land far in all prices, will probably be higher
mates that the market price of 000,000 worth of war factories by excess of the needs of even a and rents in new buildings must
apartment buildings there has in¬ the Federal Government.
fairly rapidly growing urban cen¬ be higher to make it profitable to
"What is the effect of these ter and hence the prices of most build.
creased from $450-$550 a room as
If the differential in rents
of 1935 and 1936, to $650-$750 a trends in the rents and prices of of that land cannot be subject to between the old and new build¬
room as
of the middle of 1943, improved
real estate upon the monopoly control. Instead of be¬ ings is too great, most tenants will
with further increases of 10 to prices of vacant urban land?
So ing tied down to bands within a not move but remain where they
15% by January, 1944.
In New far there has been no pronounced half mile of fixed transportation are under, the rent ceiling and
York a rising trend in prices of .inflationary trend in urban sites. routes, builders can develop al¬ hence there will be scant demand
apartments is reported, notwith¬ Near the edge of some cities, as in most any farm near auto high¬ for new apartments. The removal
standing rent control.
Mr. K. S. Long Island, N. Y., prices of land ways.
If express highways are of rent control, however, probably
Keyes reports that Miami apart¬ have been rising in anticipation built through the crowded sections will not usher in any extraordi¬
ment and hotel prices have in¬ of the nost-war demand for home- of cities where traffice proceeds nary degree of land speculation
in¬

than

of last December 31.

thousands
earnings that

The

principally known as the workingman's institutions since more

many

1920's

merchandise

with

foremost in the

many more

loan

and

mutual

slow, from
1915,
at

large existing store vacancies in

ing the urban land boo

which time there

000,000

are

citizens.

our

ings

but the smaller
ones
as
well, with populations
net income for the land. With the ranging as low as 2,000.
The savings and loan industry
prospect of the competition of
in this country is 112 years old
huge factories, built by the Fed¬
eral Government, competing with and 66 years old in this State. The
existing industrial space, with va¬ business, which has for its motto,
cancies in office buildings likely "The American Home, the Safe¬
to increase with the curtailment guard ot American Liberties," is

sult

lack

approximately better than $153,-

market in many cities due to increasing store vacancies as a reof

until

associations

"All except the best located retail store properties have no ready

was very

1929

1932.

built and financed

acquired by

financing ol

real estate debacle like that from

than

to many millions of dollars.

inceptioin

tions

the

have been paid to these savers in
the form of dividends will amount

Michigan

their

have

encouragement of thrift and the
habit of saving
that has been

The growth of the, associations
in

addition

tions

method for people to save and in¬
vest money and to provide for the

peak selling prices of the

cities, the memory
of the collapse of urban land val¬

are practically identical
in oper¬
ation, is to promote thrift by pro¬
viding
a
convenient
and
safe

titious

important
did not apply to houses occupied however, the prices of improved
properties do jnot yet justify new
by owners who were in a position
Since an average in¬
to
realize substantial profits in buildings.
crease of 30 % in construction costs
houses
bought within
the last
since 1939 has kept pace with any
seven or eight years.
Substantial

than half of its value when

urban

were

331/y% down payment, which was

ing operations can be resumed. If
building on a residential lot must
be postponed for five or six years,
its: present value is only slightly
more

families

The OPA requirement of a

way.

time

the

Many

one.

of improvement and not for
speculation.
Taken as a whole,

discussion

round-

management

problems,
Saturday morning sessions will
be given over to two prominent
speakers, John F. Scott, President
of

the

Loan

United States Savings &
League, being one of those

who will address the
It

Federal

also

meeting.

announced

Home

Bank

that
of

;

the

India¬

the

napolis will hold its stockholders'

will

j meeting for Michigan members of
the Bank

during the Conference.

How

Aggressive Should Oiir Investment PoSicy
Be At This Time?

Canadian Securities

(Continued from
weight

Incorporated

Street, New York 5

Winnipeg"

Montreal

Toronto

statistical

The

data

considerable

variation

stock

London, England

Vancouver

current

sweet, we know that the response
of investors and speculators is also
of first importance.
History has
shown repeatedly: that there can

Wood, Gundy & Co.
14 Wall

the

gives only part of the story. From
past experience, and not always

Montreal

Direct Private Wires to Toronto &

judging

situation.

Public Utility

Municipal

Canadian Securities

prices with no apparent
basic justification. When both ap¬
proaches lead to the same conclu¬
sion, as I believe they do at this
time,
then one can act with
greater confidence.
To acquire perspective, it is de¬

Gordon Towers, Governor of the Bank sirable to refer back to 1940 and
of Canada, gives statistical proof of the sound financial state of the into the spring of 1942.
Develop¬
Dominion.
Since August, 1939, the Government has borrowed $7.7 ments in domestic and world af¬
had
driven
stock
prices
billions, but owing to the redemption of some of its own bonds and fairs
Canadian National Railway bonds in London and elsewhere, the net down for over two.years.
Hitler
had exerted
increase in the Federal debt during the war is only $6.6 billions to and his henchmen
their maximum bearish influence.
the present total of $11.3 billions.-v
This timid attitude with re¬
The annual report of Mr.

been

has

increase

The

been

gard to foreign exchange prob¬
lems is to be deplored as in the

decrease in amounts pay¬

post-war period we shall be
compelled to pay greater atten¬
tion to this branch of finance

able in London and New York

of about $1

the

billion.

commencement

the

the average coupon rate was
3.61% but now is only 2.69%. The
total annual interest payable has
war,

are

proper

our

field of interna¬

the

place

take

tional finance.

to market de¬
increased* frofti$169 millions to
velopments in the past week,
$304 millions, but during the war
the
Canadian
National Railway good news was received in con¬
nection with the Montreal
and
has been able to pay interest out
Alberta
debt
situations, and it
of its own earnings, and the Gov¬
now appears that our confidence
ernment has been receiving some
in an early settlement of these
revenue from its advances to the
thorny problems is commencing to
Bank of Canada, the Foreign Ex¬
be justified. By a 90 to 2 major¬
change Control Board and the
National Harbor Board, thus re¬ ity, the Montreal City Council has
passed the latest debt plan, which
ducing the net: interest charges to
now
will have to have the ap¬
$220 millions, a rise of only $75
proval of the Quebec Legislature
millions.

the national

doubled

has
capacity

vincial debt, is being

declined
the

during

war

view of the increase in national

ago,

than

income

was

years

when interest charges were

about $135 millions and the na¬

income

tional

less

was

than

definitely firm

half its present level.
This highly
is

the

1960

and the 41/2S of

encouraging picture

reflected in

side

either

present buoy¬

section of the

ant state of the Government bond

were

The

90.

quoted

strongest

list, however, was

the shorter term category of bonds
market, which is further strength¬
ened by the official announcement following increased interest shown
in
the
market
by commercial
of confidence in the maintenance
banks.
It is worthy of emphasis
in the post-war era, of wartime
that Canadian issues in the 5-

low" interest rates.
In

view

year group are

outstanding

the

still outstandingly

of
Canadian
internal attractive, when contrasted with
strength
comparable domestic bonds
as
bonds, it is remarkable that there
the following list clearly illus¬
is not more general interest shown
trates:
in this country in this, form of
Dom. of Canada 4s_
1960-50
2.40%
investment, especially as there is Canadian National
the added incentive of

10%

bonus

dollar

should the

be restored

probable

Railway 5s~_—— 10- 1-1969-49

Canadian

Prov.

of Ontario 4s_

to parity with

Prov.

confidently
expected as soon as the problem
of currency stabilization is tackled
in a practical fashion.
Furthermore, interest rates in

Prov.

2.55

New

10-

1-1951

3.70

1-1949

2.50

reviewing
it

apparent that
is broadening,

the

situation

is
increasingly
market interest

impact
of the growing demand is likely

favorable

and the

to be felt to the greatest degree

within the 10-year range of is¬
sues

and especially in the five-

year maturity area.

offer:

5s, due April 1, 1952

2.75%

Canadian funds

Taylor, Deale
64 WALL

should

not

initial

underrated.

decline

carried

the

Dow-

Jones Industrial Average

financial

tax

proposals in February,

apprehension.
became

first

The stock market became

cline.

thoroughly liquidated under
market

stock

The

and

fear

sure

dehydrated.

Then,

rains

came.

Company

STREET, NEW YORK 5

WHitefiall 3-1874

district that the end of

might be close
(From the point of view
of the stock market, whether it
was or was not justified is not of

1942, set off the final phase of de¬
pres¬

truly
last; the

became

assured

that the Axis would be defeated.

the European war

at hand.

importance.)

The-

news¬

publishing

discontinued

papers

reports and estimates
a
deferred
demand

speeches,
outlining

has set

Committee.

definite

the important Baruch
Industry is making

Some

plans.

materials

have become available for the de¬

velopment

post-war

products

and the

action.

does

but as

deferred
spendable savings,
increases

and

demands

slow,

will be

month

every

see

progress

in over¬

lessening many of the
problems recently feared. Conse¬
quently, it is entirely possible that
by the time the next "peace scare"
or actual peace in Europe occurs,
there will be less intense fears
about the immediate-end-of-thecoming

war

problems than there were in

late 1943.
*

❖

sjc

re-study the basic influ¬
ences underlying the stock mar¬
ket, I keep arriving at the conclu¬
sion that on balance they are
more favorable than unfavorable.
I

In their places were re¬
growing evidences of boom.
problems.
Contract The superstructure of prices ap¬
term more favorable conversion
ta rest upon a stronger
to our system of free enterprise. cancellations, Government-owned pears
Industry adjusted to conditions of plants, war inventories, threaten¬ foundation than it has had for
war. And stock values commenced
ing unemployment and severance years—and a foundation that is
to reflect reality. To many of us,
pay became full-grown problems. apparently gaining in strength.
The ending of the war within a
there is no room for doubt but Fears of the period immediately
that the lows of 1942 saw the following the end of the European reasonable period is a discount¬
able certainty. Knowing the char¬
turning point between a major war replaced visions of "them
mountains over acteristic of the stock market to
value consuming bear market and there beautiful
a
Into this setting came adjust in advance to most pre¬
major
value
creating
bull yonder."
developments,
not
so
rumors
of
a
market.
great conference. dictable
In the long, steady advance from
"Anything
could
happen," we much because of composite wis¬

There
a

were

political

the

spring of
of

1942

the early

upside in¬
fluence gained sufficient momen¬
tum that they could have com¬
summer

1943,

the

elimination

Mussolini

devel¬

oped. The combination of circum¬
stances Carried both peace and
war
stocks into a readjustment.
If the pressure
been

necessary

great
to

period

longed

to sell stocks had
as
is generally

precipiate a pro¬
of liquidation, it

told.

were

widely-read

one

the characteristic of

Germany

tically all, of the immediate-end-

surrender

toward

it is

negotiations looking

"Rumors

dom

going to extremes, I can't help but
believe that most, if not prac¬

investment service summarized it:

not be true, but at of-the-war problems have been
discounted.
Probably
least the stage is being set for largely
exactly that kind of development. never before has such a mo¬
may

may

It is

clg^r, enough that,Jhe Euro¬

mentous

development

been

whr could collapse at any, widely heralded in advance of its
certain
happening.
We
know
time from this point on."
This reproduces the atmosphere that one who has continued to
that existed at the time the stock hold war stocks because the sec¬
market broke through its July- ond front in Europe has not even
August low on Nov. 8, 1943.
We begun, let alone the defeat of
had the first and only 2,000,000- Japan, has been playing a losing
share day since before the 1943 game of "hide-and-go-seek" with
U. S.
top was reached in the market. the financial poorhouse.
How
uniform
was
the
selling Steel, in declining from approxi¬
mately 80 to 50; Kennecott from
pressure is evidenced by the fact
that approximately 90% of the in¬ 45 to 30; Lockheed Aircraft from
pean

to
me
that the market dividual stocks traded that day on
likely have had a more the New York Stock Exchange
drastic phase of decline.
On the declined in price. It was an ap¬
contrary, it appears that this was pealing, emotional invitation to all
who wanted to sell stocks.
But

seems

would

40 to

15; Todd Shipyards from 100
55,
and
Niles-Bement-Pond
from 18 to 10, to represent war
to

stocks, have done a lot of dis¬
counting.
And if prospects for
primarily a period of qualitative
the ending of the war have been
readjustment to the prospects of apparently almost everyone who
sufficient to cause such declines,
the ending of the European war now wanted to sell was in that
it is only natural that prospects
within a reasonable period, and group who can observe the weak¬
for peace would have improved
not a
period of general heavy ness in the morning and execute
the status of stocks of companies
liquidation of stocks,
With the their orders before the three
The next day the that would benefit by the ending
readjustment within the market o'clock bell.
on
less than of the war—a majority of traded
to the prospects of the ending of market stabilized
securities.
This alone has justi¬
the war so far advanced, the mar¬ one-half of the previous day's vol¬
ket response

to the actual ending

Three weeks later the mar¬

ume.

ket

from

still

different
that suggested by the July-

November decline.

It is almost

shocking how con¬

sistently fear has been more

de¬

pressing
than ultimate reality
during these recent fateful years.
In September, 1938, fear of war

invitation

the

but

lower,

moderately

was

extended

liquidate went unheeded. Finan¬
cial papers reported more bearishness
about the outlook for the
stock market than had existed in

If the market had
been in a position for a further
decline at that time it very likely
precipitated a decline in the stock
market.
When the Munich Con¬ would have occurred. Rather, the
ference was announced, with the market advanced•• about 10 points
false "Peace in Our Day" the in terms of the, Dow-Jones Indus¬
market quickly advanced about 25 trial Average, and relatively more
for both the railroad an$ publicpoints, as measured by the DowThe implications
Jories Industrial Average.
Fear utility indices.
cline

Province of Ontario
Priced to yield

reconversion as are
the leaders in business. The Con¬
gress has committees at work in
an effort to anticipate and miti¬
gate the problems of reconver¬
sion.
Also, the Administration

blueprints are being com¬
pleted.
Limited reconversion has
already occurred in certain indus¬
tries.
We have already left the
exclusively talking phase, and are
in
the
period
of
preliminary
The

back"

of war

$50,000

Payable in U. S.

It surely would have
profitable to have done the
opposite; that is, to acquire stocks
during the period of apprehension
when others were lightening their
commitments.
Having
passed
through the period of intense ap¬
prehension last November, the
market may have little difficulty
in absorbing any remaining sell¬
ing that mjght take place.
The pattern of the July-Novem¬
ber, 1943, decline appears to have
favorable market implications that
some.

been

of the war could be very

of Manitoba

in this
case, seems to present an almost
insuperable obstacle to the ma¬
jority of investors.

2.65

4tes— 12- 1-1947

generally,

diminish.

11-15-1948

4M>s

However, it seems clear that the
foreign
exchange feature,
al¬

highly

1-25-1949

_____

City of Toronto 4y2s

ation of wartime controls this dif¬

though

Brunswick

in the 10-year category
roughly 1% higher than here,
but as soon as there is any relax¬
to

,4f

4'/as

Province

are

tend

2.50

of Nova

Scotia

Canada

will

2.35

Columbia 5s
Prov.

2.45

1-1949

Quebec 3s-,.7,-15-1949

Province of British

the U. S. dollar, as is

ferential

787)

page

then

from 146
to 134.
Thereafter, to about the
middle of September, the market
worked up to 141.
On this ad¬
vance
the groups classified gen¬
erally as "war beneficiaries" made
very little progress.
There devel¬
oped
a
strong
feeling in the

groomed as
pletely exhausted themselves be¬
national
leader
of the
Social
fore the July-November decline
Credit party. Consequently, Mon¬
set- in.
Considerable speculation
treal
and
Alberta bonds were
took
place, especially in lowstrong as was the market as a
priced stocks.
The-.market | was
whole.
particularly vulnerable to profitEven
Saskatchewan,
which
taking and liquidation when the
have been on the weak side, in
''peace scare" associated with the
recent weeks were

It is even less now in

period.

According

report, Mr. Solon

Low, Provincial Treasurer of
Alberta, and persistent advocate
of an early refunding of the Pro¬

relation to debt

haying

capacity
as
substantially

bondholders.

Edmonton

has increased still more, Mr.
Towers regards the burden of
debt charges in

the

and

income

taxable

and

reference

With

for

advanced preparation

proper

The Administration's "stab-in-the-

en¬

tirely in Canada and there has

pared for the Pearl Harbor attack.
The leaders in Washington are
now
as
aware
of the need of
the period of

Provincial

Government

Thursday, February 24, 1944

THE COMMERCIAL & FINANCIAL CHRONICLE

806

precipitated a serious.de¬
the spring of 1939, and

over

year.

that the stock market as

were

had

whole

become

adjusted

prevailing' and discountable con¬

by a sharp advance when
the terrible thing actually started.

logical consideration. In three or
six months from November, 1943,
will the influences dominating the
market be more or less favorable

practice of dominating specu¬
lators
and investors appears to
have
been
to
lighten commit¬
ments when we approach a crucial
The

period, and then after it occurs,

(you could
almost say, good or bad), scramble
after all that they had sold and
whether peace or war

This leads directly into the

bilities
have

are

and

prove.

then? The possi¬
good that they
continue

We were

im¬

unprepared

last November for the end
war

very

will

considerable

rise

good

ket

generally since early 1942.
change for the better in the
political background is a major
influence upon stock prices.
It is
The

probably not an understatement
to say that during the past decade
our

American institution

of free

enterprise has survived its sever¬
est test.
A philosophy of reality
and hope is replacing the phi¬
losophy of defeat and fear, in¬
spired in part by the change in the
administrative
trembles

when

have

leadership.
he. thinks

were

the

happened

Trusters"

One
what
the

driver's seat now, with the Gov¬
ernment owning close to 25% * of

ditions ahead.

than they were

post-war securities and the mar¬

a might
to. "Brain

again caused liquidation of stocks
immediately preceding the out¬
break of the war, only to be fol¬
lowed

fied

of the

in Europe as we were unpre¬

our

plant capacity. *To a large ex¬

tent, such people have been re¬

by men like Charles E.
(big business), Donald M.
(big business), Bernard M.
Baruch (Wall Street), and John
Hancock
(Wall
Street).
The
placed

Wilson
Nelson

"money changers" have been in¬
From
an investor's
point of view it is

vited back into the temple!
•s
.

(Continued

on page

808)

Volume 159

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4258

807

plan

preparation by all
cities j
1,000,000 population shows;
capital improvements valued /at
$550,000,000 were ready for con-1
tract, $1,600,000,000 were being
The
New
York
Curb
Ex¬
surveyed and $3,780,000,000 worth
of
public
improvements
under change's 1944 Red Cross Drive
preliminary
study
by
Jan.
1. opened in the afternoon of Feb.
Types of work include streets and 17 in the Board of Governors
bridges, sewerage and water sup¬ room of the Exchange with the
ply, public buildings, refuse dis¬ presentation of two films and a
posal facilities, airports, recrea¬ brief talk by a field worker of

N. Y. Curb

under
on

New

York

Frank

report says that, "pending set¬
tlement of the case now before

Comptroller-

State

Moore

announces

that

Court

and

Errors

VIRGINIA-WEST VIRGINIA
NORTH and SOUTH

Ap¬

he will receive sealed bids at his

the

office in Albany, on

peals, the State Treasurer is
holding certified checks of the
railroads amounting to approxi¬

March 1; for
purchase of an offering of:
$8,330,000 housing bonds.
The.
proceeds from the sale of these

the

bonds will

be .made

Tonawanda

provide

for

Regardless
suit, it is
City. Comp¬

cf the outcome of the

available to

Housing Authorities in New York.
City, Schenectady, Niagara Falls,.
Elmira, North / Tohawanda l and;

$20,609,000.

mately

CAROLINA
MUNICIPAL BONDS

estimated

the

receive

the

funds tendered

CRAIGIE&CO.

approximately $6,000,000

•F. W.-

will

City

Jersey

that

troller
the

date.

When
received, these monies
financing of housing
will represent an addition to
projects which, have been com¬
unencumbered cash surplus."
pleted or are nearing completion.
The money so provided will be
Reduction
last
year
by
the
repaid to the State as the housing Hudson County Tax, Board in
bonds mature, together with in¬ valuations of real property are
terest at the rate borne by such being appealed by the city, and
bonds.
the corporations which received

Bell System Teletype: RH 83 & 84

permanent

This method of assistance

increases

valuation

the

New

York

and

Treasurer

Macy & Co., will speak
"Financing the Future."

Speakers

conference,

the first day of the
include
Hugh

will

Potter, President of the Urban
authorized * by/ tangible personal property are
Land Institute, Houston, Texas;
State Conlikewise-appealing.
The Board
Carl H. Chatters, Executive Di¬
has given no indication as yet as
stitution in 1938.
It enables the
rector, Municipal Finance Officers
to what action it will take in re¬
municipalities and authorities
Association, Chicago, and Ira S.
to finance housing projects at
spect to 1S44 valuations, says the
Robbins, / Acting State Commis¬
the low interest rate which the
report.
The Board in 1943 or¬
sioner of Housing of New York,
dered a cut of about 22% in the
'State, because of its sound fi¬
New York City.
values of real property in Jersey
nancial
condition
and
fiscal

! housing

was

amendment to

the

.policies, command.

These ben-

efits will

in turn be passed on

In the form of reduced

tenants

the

rents-to
housing

and at the same time in¬
personal property values
recorded by the city from about
$43,050,000 to $98,118,700.
creased

the

conformance

with the prac¬

the

field

housing finance,

Comp¬
troller Moore has reserved to the

Cut

right to call the hous¬
ing bonds for payment before
their maturity dates.
The new bonds will be issued in
coupon form in denominations of
$1,000 and in registered form in
denominations of $1,000, .$5,000,
;

$10,000 and $50,000 at the option
of the purchaser.
They will be
dated March 2,1944, and will ma¬
ture at the rate of $170,000 an¬
nually in each of the years 1946

1994, inclusive, interest being
payable semi-annually.

43% In Five Years

While reports of extensive

debt

States and munici¬
palities are now a commonplace,
the record in this respect of the
city of Worcester, Mass., is par¬

ticularly impressive and worthy
of special mention.
According to
a statement issued by City Treas¬

Public
more

works

officials

need

trained personnel and addi¬

tional funds for detailed planning
of public works if they are to
prepare

useful

and

adequate program of
needed
public im¬

yesterday's offering of $500,anticipation notes',
the city reduced its bonded debt
by $1,962,000 in 1943 and to the

ing the period of transition from

revenue

extent

less than $5,762,000

from June 30, 1939, to the present
time. *

Jersey City Net Debt
Cut $3,476,218 in 1943

The

grand aggregate on the
was $13,475,000 and
compares with the present level
earlier date

Jersey City/ N. J,;

again in 1943 effected a substan¬
tial reduction in its net public
debt, marking the eighth consec¬
utive
year
in which the total
was
lowered,
Last year's cut

Municipal Post-War Project
Planning Shows Progress

$7,713,000,

43%

nearly

period.

The

rate

bonds

reduction

the

five-year/

.interest
outstanding is

average

1.59% and Mr. Tunison further

war

to peace.

This
of

indicated by a survey
cities on the progress of
was

advance

plan
preparation
and
engineering "design conducted re¬
cently

the

Works

Association.

American
Size

Public
of

re¬

porting cities ranges from Greendale, Wis., with a population of
2,700 to San Francisco with- a
674,000 population.
" **

I According to the/survey/ for
$1,000,000 worth of mu¬
nicipal public works ready for
every

Committee

is
headed by
Moffatt, President, who
will be assisted by Carl F. Cushing, Charles E. Judson, R. W.
Kerpen,
Charles
J,
Kershaw,
On the basis of reports received
Charles
Leichner,
John
M.
from several communities having
Maurer, A. Philip Megna, Edward
their
own
water
and
electric J. Shean and Morton Wohlgemuth
plants, municipally-owned utili¬ in a one-month drive to raise
ties have had a profitable year, it
$10,000, their goal this year. The
is reported by the International
first film, the War Department's
City Managers Association.
Re¬ "Lifeline,
was a 20-minute por¬
Fred

ports to the association show that:

trayal
of
the
opening
attack
against
Rendova
and
Munda,
showing the evacuation of our

The

Elizabeth,

board

will

divide

J., water
operating

surplus of between $400,000
and $500,000
among
consumers
through rebates on bills for the
first quarter of 1944.
The large
surplus is attributed mainly to
increased

H: J. Tunison in connection

with
000

Cross, explain¬
ing the urgent need for the cur-/
rent drive.
The Exchange's Red

of water.

provements for construction dur¬

urer

the American Red

and

industrial

Wyandotte, Mich., recently re¬
to electricity consumers

10%
the

of their net annual bill for
fiscal

wounded heroes.

There

was

also

presented "At His Side," the nineminute Red Cross film.
gram

was

repeated

The pro¬

Friday,

Feb, 18.

consumption

funded

reduction by

State the

drainage

Municipal Utilities Had
Profitable Year,
Survey Indicates

will be introduced by Miss Eliza¬

Wood, Executive Secretary
of the Chicago Housing Authority.

Worcester, Mass., Debt

tice he initiated last year,

The city of

facilities,

flood protection and other miscel¬

beth

\ projects.

The March 9th program, to be
study of the role of Government

City,

tional

Cross

Telephone 3-9137

II.

1944 Red Gross Drive

laneous public projects.

RICHMOND, VIRGINIA

Opens its

Garitey Director Of
Nat'l Sec. & Research/

ending last

Sep¬
Henry J. Simonson, Jr., Presi¬
tember.
The city took this step dent of National Securities & Re¬
rather than further reduce the search
Corp., 120 Broadway, New
year

low rates already in effect.

York City, announces the election
Ames, la., cancelled all Jan¬ on Feb. 14 of Harold M. Gartley
uary,
1944, electric and water as a Director of that corporation.
bills, totaling more than $35,000,
Mr. Gartley is President of H.
because of a large cash reserve in M.
Gartley, Inc., established over
its utility fund.
10 years ago. This firm is engaged

The city-owned Kirkwood, Mo., in the business of rendering in¬
to
a
light department will rebate the vestment counsel service
entire amount pf the December number of large individual and

electric

bill

$21,000 to

than 4,100 consumers.
Three

southern

bought

power

consumer

Valley

last

lieu

The cities

Athens,

Ala., and Tupelo and
Columbus," Miss.
The refunds

$10,003,
$42,249
$41,564, respectively.

periodic

invest¬

throughout the country.
Special studies of individual com¬
panies and issues have been made
by this firm for some of, the most
prominent
institutions
in
the

were

totalled

services to hundreds of in¬

dividuals

Au¬

paid

year

dividends

reducing rates.

issuance

ment

cities I which

Tennessee

thority

institutional accounts and also in
the

"Street."
Mr. Gartley has had 30 years'
experience in Wall Street.
He

and

has
been
affiliated
with
such
the contractor, $3,000,000 worth
to
Action
of
the
$3,746,218
and
reports that the city has a com¬
communities,
Stock Exchange firms as Post &
bined revenue surplus, overlaiv
is under survey and $9,000,000
brought the amount still outstand¬
along with others cancelling or
being given preliminary study.
surplus, water surplus and war
ing to a level of $50,501,048 as
rebating utility bills in recent Flagg, Frazier Jelke & Co, and
Orvis Bros.^nd has also been em¬
bond reserve of about $1,200,compared
with
$71,173,114 on
Contracts could have been let months, is the result in part of a
by
the
Tri-Continental
000.
Dec. 31, 1935, according to a re¬
for capital improvements amount¬ greatly increased use of utilities— ployed
port released last week by WainWith respect to tax collections, ing to $48,124,371—$8,000 worth with consequent increase in rev¬ group of investment companies.
He has written extensively on in¬
wright, Ramsey & Lancaster of it is reported that over 94% of the of public works construction per enues—while
expenditures
for
New York City,; the city's finan/ 1943
maintenance remained fairly sta¬ vestment and market subjects for
levy has been paid; more 1,000 population—on Jan. 1, 1944,
many of the outstanding financial
cial consulants.
than 99.9% of the previous year by the 68 cities reporting.
Sur¬ ble, or even declined.
publications.
and no taxes of 1941 and preced¬ veys and plans had been insti¬
The aggregate reduction of
This latter is due largely, the
tuted
for
the net public debt since 1935
capital improvements Association said, to the inability
ing years remain unpaid.
valued at $139,430,608, or $23,100 of the utilities to obtain material to deferred maintenance policies
has totaled $20,672,066, or 29%,
worth of public works per 1,000 and equipment to extend utility brought on by wartime restrict
the report shows, adding that
Conference On Post-War
future debt requirements call
population.
Preliminary studies services to additional areas, and tions.
Dousing Scheduled
of a general nature were started
for a further reduction in the
Leaders in all fields of
next five years of over 33% in
housing on projects totaling $437,530,102
—research, planning, construction worth of public construction, ap¬
the net general debt outstand¬
The Comptroller of the State of New York
and finance—will
participate in a proximately
ing as of Dec. 31, 1943.
$72,500
per
1,000
National Conference on Post-War
population.
will sell at his office at Albany, New York
The report points out that the
Housing to be held March 8, 9
1944 tax levy is estimated at $25,Among reasons for the lag be¬
and 10 at the, Drake Hotel, Chi¬
tween
March 1,1944, at 12:30 o'clock P. M.
831,256, a net increase of $861,868,
completely planned im¬
cago.
The conference is being
"but as the 1944 budget of Hud¬
provements and
needed public
sponsored by the National Com¬ works on
which only preliminary
son
County
(of which Jersey
mittee on Housing, Inc., of which
studies
are
City's' portion is about 50%)
underway
is
the
Mrs. Samuel I.
Rosenman, of New shortage of trained engineering
shows a reduction of about $360,York, is Chairman.
000 the final tax levy should be
personnel in the public works
The March 8th program will be
'somewhat below the figure in the
departments, the association said.
devoted to a discussion of meth¬ Seventy-five
budget " estimate."
New Jersey
per cent of the cities
ods of post-war
laws require that the preliminary
redevelopment of reporting
indicated
additional
of the
cities.
The March 9th
budget contains estimates for State
program personnel was necessary for de¬
will consider the role of Govern¬
and county taxes, no less than the
velopment
of
adequate
public
amounted

;

$8,330,000

Housing (Serial) Bonds

for
the
preceding year. ment in the 'field of housing works programs; similarly, 76.5%
The March
10th pro¬ indicated
the
need
for
more
preliminary 1944 budget for finance.
municipal operating expenses con¬ gram will be devoted to study of planning funds.
home
tains appropriations of $13,944,- new
building materials,
At least 67% of the cities,
894,
as
against $13,155,156, in techniques,, costs and financing.
most
of /them in the larger
Discussions will be conducted
1943.
by
population group, believe Fed*Total
unencumbered
surplus leaders in the various fields.
era! assistance would
further

State of New York

-levies

The

Dated

March

1944

maturing

and

$170,600—annually March 2,1946

to 1994

follows:

inclusive.

$8,959,196 compared
with $8,379,840 at the beginning
■of 1943.
The report calls atten¬
tion to the fact that, after cash
appropriations of $2,769,406 in the
1944 budget, there remains un¬
appropriated $6,189,790. The re¬
port further states that this sum,
retained as an operating fund,
.eliminates the necessity of current
borrowing.
now

stands at

In connection with the

collec¬

tion of back railroad taxes, the

In addition to

the three spe¬
cialized programs, there will be
a
luncheon on March 9th at

local advance plan

which

dicated

John

Administrator

Housing

Blandford, Jr.,

Agency,

There will be

the

National
will
speak.

dinner-meeting

the

evening of March 9th at
which Henry J.
Kaiser, ship¬
builder

speak

and

industrialist,

will

"Building the Future,"

land Beardsley Ruml, Chairman
of the Federal Reserve Bank of

preparation.

Given sufficient funds and ade¬

quate

staffs,

all

capital

68 cities in¬
improvements

valued at $173,000,000, or $28,600 per 1,000 population,

would

Redeemable

by State

interest payment date

notice,

March 2, 1964, or any

thereafter.

Principal and semi-annual interest March 2 and September 2

payable in lawful

money

of the United States of America,

at the Bank of the Manhattan

Company, New York City.

be designed this year.

Deferred

maintenance

projects

amounting to approixmately $19,733,9?5-4iave accumulated in the
reporting cities—a ratio of $3,270

1,000 population.
A rough estimate

per

of advance

Descriptive circular will be mailed
FRANK C. MOORE, State
Dated:

February 23, 1944.

upon

application to

Comptroller, Albany, N. Y.

THE COMMERCIAL &

808

them against a low

Aggressive SMd Oar Investment Policy

How

ket

extremes and sell at 17
the Dow-Jones Indus¬
trial Average would exceed 200.
We have recently rechecked the

replacing bad management
good.
The future problems
eliminated, but the ability
to work out the problems satisfac¬
torily has been greatly increased.

the

improvement

similar

management of a leading organ¬
ization would result in a higher

stock.
It is equally logical that stocks in
general would capitalize earnings
at a higher ratio with this im¬
price-earnings ratio for the

proved leadership;
The
Federal
Reserve Board
Index of Industrial Production is
<

now

with

the

approximately

If,

250.

termination of the war

decline one-half

boom, it were to

Nevertheless,
post-war earnings estimates for
the low times-earnings ratio for
all
of
the
companies
on
our
these two years averaged only
Selected List.
Taking the esti¬
slightly less than 14 times. The
mates for each company and valu¬
1939
low
times^earnings ratio,
estimates in keeping
which was made in the spring of ing these
with an average of 14 times earn¬
the year under severe market con¬
ditions precipitated by the fear of ings for the Dow-Jones Industrial
war, was approximately 13.
Dur¬ Average, we arrive at valuations
on the basis of 125 FRB approxi¬
ing the war period the timesmating current prices and, in
earnings ratio is naturally lower.
some instances, moderately above
It averaged about 10 times for the
current
prices.
Valuing these
years 1940-43, inclusive.
(These
same earnings on a basis equiva¬
ratios are for the Dow-Jones In¬
lent to 17 times earnings for the
dustrial Average.)
On the basis
Dow-Jones Industrial Average, we
of past experience, it would seem
arrive at values for the stocks on
reasonable to expect the market,
our Selected List as a group 50%
under other than the most tem¬
above the current price.
Judging
porary unfavorable conditions, to
the companies on our Selected
average on the low side about 14
List
against
a
post-war back¬
times earnings.
Fourteen times
ground of 150 FRB and 40% taxes,
$10 is 140 for the Dow-Jones In¬
and at prices equivalent to an
dustrial Average.
(The current
average of 17 times for the Dowlevel of this average is about 135.)
Jones Industrial Average indicates
Prior to 1940 the Dow-Jones In¬
an average potential appreciation
dustrial Average, at its yearly
which is decidedly appealing.
high, had not sold less than 17
The earnings figures used may
times that year's earnings in any
be
quickly attacked by some,
year since the 1920's.
The ratio
for
1937 and for 1939 was ap¬ especially on the grounds that the

about 125, it would
surely be deflated, allowing for
the economic forces at work.
If

and stabilize at

profit taxes are eliminated
remain at 40%,
this level of business would gen¬
erally result in earnings in terms
of the Dow-Jones Industrial Aver¬
excess

and normal taxes

of about $10 per share. Dur¬
ing the years 1932 through 1934
earnings in general were at such
low- levels that the prevailing
times-earnings ratio is of little

age

earnings.

level

are not

ultimate in high taxes, and

approximately 14 times earnings.
not

The 1937 low earnings ratio is

representative because the market
had a sharp break and the year's
earnings were still high.
Con¬
versely, the 1938 ratio was far
from normal because of the low cautious, we would want to

taxes, is important.
Another approach

■

The last

Industrial Av¬
erage. : Considering the prospects
of
peace
within a reasonable
period, which is surely less fear¬
ful than the prospects of war, the
improvement
in - the. political
background, and the improvement
in finances of corporations, the
market appears cheaper today at

the, end of the war, but I
it will also be a salute to an await-; ^

; •

■

).;• t

'•

'•J' ■ *;'
•
. .

.•

$3,310,000

Chicago Park District
Due March

such

of 1944, Series J

1, 1964

making

post-war
great.
This is

very

These bonds are

offered when,

as.

ing about the future level of the
Federal Reserve Board Index of
what levels of this

do not know

"adjustable" index will corre¬
spond with reasonable and good

thereafter until redeemed

referred

and subject to appropal of

opinion will be furnished upon delivery.
The
offering circular may be obtained in any state in which this announcement is circulated from
only such of the undersigned as are registered dealers and are offering these securities in
compliance with the securities law in such state.

STONE & WEBSTER AND

PHELPS, FENN & CO.

BLAIR & CO., INC.

BLODGET

(INCORPORATED)

E. H.ROLLINS & SONS
INCORPORATED

FIRST OF MICHIGAN

otis & CO;

HEMPHILL, NOYES & CO.

CORPORATION

(INCORPORATED)

the

INCORPORATED

STERN BROTHERS & CO.
KANSAS CITY

PIPER, JAFFRAY &

MULLANEY, ROSS & COMPANY
CHICAGO

V '

can

forecast the future

discouraging if

March

•

> 1

: '

been

Interest

1944.

thereafter.
of

Principal

payable March

1945

1944.

People

are

necessity of avoiding serious

the

that it is quite
generally taken for granted that
unemployment

it must and will not

be'permitted.

This suggests a

floor in business
and employment much above de¬
pression levels, but, of course, a
rough and undesirable floor,
4
However, isn't there at least a
possibility that things ihay be dif¬
ferent? * In the long history of
America
controlling periods of
have often; been

excesses

our

most

difficult problems.
When peace¬
time production of the many items
not

being

now

produced

re¬

there will be many price £
Almost three-quarters of

sumed
rises.
the

cost

producing

tured goods consists

between

the

and semi-annually, March

1 and Sep¬

of first importance.

Therefore, it

is logical to expect that there will
be an effective drive to reduce the

weekly hours to

less than

even

they were before the war.
Con¬
currently, people will say that
consumer purchasing power must

severity of the torrent of warboom-liquidation. The probabili¬

that the longerterm
prospect
will
remain
a
steadying influence. As I visual¬

This will

nance

ties are, however,

automobile

it has

strong rail¬

not

could

companies

produce armaments.
Pearl Har¬
bor Tne&nt the end of automobile

production for the war, and the
outlook for these companies was
interpreted as very drab indeed.
This was reflected by the prices
of their stocks: General Motors

29,

Chrysler 41.
But here we
well-managed industry at

saw

companies
parade
of

work.

Soon these very

were

leading

the

miraculous armament

margins

are

low, but earnings are
observation

This
for

many

production.
abnormally
satisfactory,
are at war.

equally true

other segments of the
Company after com¬

has gone through the same

cycle.
Now

come

The

war.

war

automobile
about

the

to the end of the

contracts

companies

Will there be

of the

are

can¬

doubt
their ability to reconvert te

production

any

cars?

Will

encour¬

labor to demand a mainte¬
of weekly incomes at high
levels, notwithstanding the reducage

tion in

If this is

hours worked.

done it

could increase unit costs
and force a further rise in prices.
There will be a period of time#

required to meet the demands for
many
items that are not now
available.
Again referring to the
automobile industry, if one who
has saved to buy a car is asked to
defer his: purchase fof a year or
so
because enough cars are not
available, he could easily be induced to buy stocks of automobile^
companies that would benefit by
the earnings derived from the pro¬

[

duction and sale of cars to others

until his

car

is available.

equally-true
and

could

many

This is

products,

stimulate the

demand

With this back¬
ground the common stock sales¬

for many

man

stocks.

could be

popular than^

the Fuller Brush man.
If this condition should

would

what
means

call-loan

develop,

the

effective

control?
rate,

been done in the

$1,000,

celled.
February 24.

dealing

were

deflation.

be maintained.

and interest payable in Chicago, Illinois.
Coupon bonds in the
registerable as to principal only.
The information contained herein has
carefully compiled from sources considered reliable, and while not guaranteed as to com¬
pleteness or accuracy, we believe it to be correct as of this date.
1,

denomination

reasoning there is

link

missing

economy.

tember

troubles

our

with

sound

considering that

HOPWOOD

MINNEAPOLIS

manufac¬
of wages, and
it were of controlling importance. the big rise in basic wage rates
Nevertheless, allowing for reason¬ already effected will force a rise
able error, our statistical studies in prices until industry is able to
suggest that the stock market in perfect offsetting efficiencies. But
terms of carefully selected issues, this is only part of the picture that

pany
Dated

sug¬

The inexactness with

past.

which We

Profit

BRAUN, BOSWORTH &, CO.

ELDREDGE & CO.

only

are

gestive of business conditions as
we have understood this index in

and

CENTRAL REPUBLIC COMPANY

INCORPORATED

rates

helps to clarify this consideration.
In 1941 we were told that the

legality by Messrs. Chapman & Cutler, whose

HALSEY, STUART a CO. Inc.

The

business.

ing to which the investor can hold
for security.
Reference to the
over-worked automobile industry

yield 0.75% to 1.50%

and if issued and received by us

when talk¬

true in a difficult way

ize the bridge

optional date and coupon rate of lVz%

stock

present and the future. We must
cross the bridge which connects
the war and the post-war periods.
There is the danger that investors
will become overwhelmed by the

binding obligations of the Chicago

without limitation as to rate or amount.

has *
the post-war; down-side'
problems.
One would almost be

gone into

specific

any

estimates is

the

opinion of counsel will
Park District,
valorem taxes levied against all the taxable property therein

Prices to

an uplifting influence.
great deal of planning

Labor has become
investment level, lies ahead.
period of time could thoroughly and strongly organized.
appreciate substantially.
In my With the lower levels of producwhen war contracts are
judgment the market observations tion,
against the unfolding background terminated,, all will agree, that
creating additional employment is
encourages the same opinion.

issued for refunding purposes, in the

payable from ad

have seen during the

In this line of

constitute valid and legally

sibly

past decade, but in the end they
will assert themselves.
The danger in being wrong in

the par value thereof and accrued
interest on the date that they severally become optional or on any interest payment date
thereafter upon 30 days' published notice. $185,000 are optional on September 1st of each
of the years 1946 to 1959 inclusive; $180,000 are optional on September 1st of each of the
years 1960 to 1963 inclusive.,
■i-

These Bonds, to be

larly well in this period.
Its
approach is a sustaining and pos¬

and over a

subject to call for payment by lot at

These Bonds are

liquidation of stocks of

severe

Industrial Production, because we

which the

deflationary

in detail would be

V/t% Refunding Bonds

for

broader per¬

common

extent.

probable that there will be at

•

•.

whole to

economy as a

•that: is not apparent on the sur¬
faceThis is not a background

conscious of these difficulties and

it is

economy.
'

practice of retaining part of earn¬
ings within the business, the longtrend

■

other segments of the
It is also true, for our

many

developments

statutes and interpretations as thus far
these bonds is exempt from Federal Income Taxes.

interest on

'for

spective, it is worth observing that
so long as industry continues the

term

companies.

for, these

led to think that in the past most

judge least one phase during

*'v-\

ing, .bporn

\ companies. that will do particu- 4-

before the outbreak of war.
To obtain an even

?This observation is equally true

than it was

about the same level

bombing raid may be

salute to.

in the Dow-Jones

have

construed by the courts,

at the previous peak.

were

low made at that time was

prices is upward.
There can be
discouragingly long periods when
these basic influences are offset

opinion of counsel, based on present

V*-

there

practical buying
125-130

The

opments.

levels

In the

judging

position of the market is to
compare the present with a period
in the past when the market was
faced with difficult problems.
As
I have stated before, in the spring
for
automobiles , will
of 1939 the market was driven demand,
down severely by the fear of war surely not.be satisfied until there r-:
are more pars on
the road than
and unfavorable political devel¬
the

It may
be that it will be some time after
the end of the war before tax
rates are reduced to their post¬
war minimum, and it may be that
the figure will remain above 40%.
However, from the point of view
of judging the market at
this
vantage point, it seems to me that
the 40% figure is reasonable.
The
very phrase "excess profit taxes"
implies a temporary tax.
When
we come into the post-war period
is too low.

tax rate used

proximately 17. Seventeen times
$10 equals 170. During the years
following the war, referred to as
the period of deferred demand,
business could easily rise on a
12-month basis to more nearly
150 FRB.
This level of business
and a 40% Federal tax could well
result in earnings for the DowJones
industrial
companies
of
about $12 per share.
Fourteen
times this figure is 168.
Since
some of these earnings might be
viewed
as
temporary,
to
be

significance for normal purposes.
At the 1935 low, which was made
while there was still uncertainty,
and before the big move that led
into 1937 really got under way,
the market sold at a low of 14
times earnings. The 1936 low was

the

with

will be on
decline in

of the war
threshold of a

end

the

their

demand' for

the

reached

probably

have

strong
products? .: In
the 1980's the industry, had to pro- v
duce:about '20,000,000 cars in- order ' ■
to increase the number, of cars on;
the road by about 6.000,000._ Be¬
fore the war is over there > will,
almost certainly be a reduction of,
more than
6,000,000; cars. on :'the;
;road.; :If ?the experien^
1930'sis repeated, the industry
'may have, to produce at least ^
20,00Q,Q00, cars to restore 6,000,000
cars to the road, and the deferred
there be. any.doubt about a

anticipate an even

may

times $12,

(Continued from page 806)
with

repeat its ever-recurring habit

investor

greater reduction than actually
takes place.
The very fact that

of going to

Be fit This Tims?
like

times-earnings

However, should the mar¬

ratio.

Thursday, February 24, 1944

FINANCIAL CHRONICLE

Raising the
has generally
past, would not

now

produce

upon

rising stock prices.

serious restraint

With the

unbal-

V;.

anced amount of short-term bonds

outstanding, ..interest

;

Government

having

rates

could

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4258

159

hardly be permitted to increase
a period of time even if the

for

low

continued

Broker-Dealer Personnel Hems

encouraged

rates

■

the

beginning of a credit boom.
Increasing reserve requirements
might not be seriously deflation¬
ary for a considerable- period, in
,view of the very large volume of
deposits and excess funds gen¬
erally.
If

i" i

•

such

background were to

develop it could cause people to
become actively concerned.about
the future purchasing power of

the

Over

dollar.

centuries

the

have been
tried,-from Clipping coins to issu¬
ing fiat • money and devaluing
gold. In the history of world cur¬
"fiscal1 tricks"

many -

If you contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this colimn. *: ^ •

BOSTON, MASS.—William B.
Coy has joined the staff of E. H.
Rollins & Sons, Incorporated, 75
Federal St.

ANGELES, CALIF.—Carl

MASS.

BOSTON,

—

'to
:

overstress

V There

are

this 'point of viev/.

many

things that could

become
associated
Republic Co., 209
South La Salle St.

resort to taxation as a means

(Special to The'Financial Chronicle)

LOS

(Special to The Financial Chronicle)

;

Bank

Reserve

453 South

LOS

Wickham

Ilawley,

investment

When

one

the

contemplates

problems that will be ushered in
with the ending of the war, a

South

was

over

these United States be¬

yond that of the majority of the
Kings and Queens of the British

influence for an in¬
definite period.
It has never been
profitable to hold stocks generally
when production is at a boom
stantial

;

when

decline, ^and

Building.

stantial

decline.

The

emotional

calls for caution. On the
other; hand, when one looks at the
underlying forces that may be at
work, one finds many reasons to
be aggressive.
In my judgment
the response based on reason calls
for accepting the present as a time
to accumulate additional favor-

Mr.

Wick¬

Edward D. Dail & Co.

Mrs. Tur¬

formerly with Reinholt

was

ner

& Gardner,

—

SAN

Chronicle)

Alexander

CALIF.—
joined

FRANCISCO,

Frederick W. Brigham has

staff

Waldron

the

of Andrew W. Quinn, Brix Build¬

405

Co.,

Montgomery St.

ing.

Mr.

Brown

formerly

(Special to The Financial Chronicle)

Woodbury, previously with H. R.

Co., is now with Russell
Figueroa St.

ANGELES, CALIF.—Rob¬ staff
Whitacre

has

af¬

become

filiated with the California Bank,
o50 South

Spring St.

now

with

&
.

(Special to The Financial Chronicle)

CALIF

FRANCISCO

SAN

The .investment equation that
from this analysis is selec¬

tively;

buying.

cautious

down-side

risk

seems

The

relatively

the
longer-term
upside
possibilities could be substantial.
In the meantime the average yield

small;

good common stocks is attrac¬

against the background of
artifically low bond yields.
The
tive

.2 application of

thoughts might

an academic
This means one
part "selectively cautious" and
two parts "buying."
Should by

made

clear

equation "SCB2."
-

chance

during

the .market

next few months be

the

forced below

the November, 1943, lows on the

break-through, I should immedi¬
ately
revise
the
equation
to
"SCB10," because of the .great
probability that the decline would
be limited, in general, to only a
few points, even less for carefully
selected stocks be only tempo¬

rary. and followed by

substantial

profits before too long for patient
investors.
• >;2
:■% f:;v.

Attractive Situation
Sheet and Tin Plate
Company offers attractive possi¬
bilities
according to a detailed
Empire

distributed by
Hill, Thompson & Co., Inc., 120
Broadway, New York City. Copies
of this interesting memorandum

memorandum being

may

had

upon

request -from

Hill, Thompson & Co., .Inc.

—
—

dealer

Inc.

the opportunity exists for

some

retail

step out and establish ah exceptional public reception to
his business.
The field of newspaper publicity is wide open to the
kind of

advertising that the investment business has sorely needed
but not the kind that it unfortunately has been using.
When one looks back upon the financial advertising that has been
filling the pages of our daily papers, it is no wonder that the average

for

years,

in the

street, the smaller individual investors, the millions o£
upon the business of investment in
securities as something very far removed from their daily lives.
Statistics, statistics and more statistics. Cold, uninteresting tech¬

every-day

people,Estill look

nicalities, tombstone announcements, phrases and statements written
in many cases from the standpoint of the professional investor—is it
any wonder that the people who should become investment conscious
security section of their daily paper

something that just fills up space which only is of interest to

bankers and brokers?

forward-looking dealer inserts an ad that
talks to people—not down to them.
He tells his story in language
which they can understand.
He approaches the intensely interesting
story of investment from the "human angle."
He tells them what
investment of the right sort and under proper conditions CAN DO
FOR THEM.
He lifts his story out of the hackneyed and the com¬
Occasionally

some

monplace and the result is that the cash register begins to ring.
Here is an example of what we mean. The following ad was one
of a series which was run last year by Jackson & Smith of Gastonia„
N. C. It deals with a specific offering of a hosiery stock. Preceding
this ad were a number of human interest insertions dealing with the
Ads

portfolio building, increasing the

earning power of savings, informative yet brief little stories of why
common stocks
fluctuate and why they are a good investment if

time, of the firm's willingness to help
right securities for their needs without placing
them under obligation and others along the same lines had already
built up a prestige and standing foT this firm that put WEIGHT
purchased

the

find

investors

proper

the

BEHIND THIS SPECIAL,OFFERING WHEN IT WAS ANNOUNCED.
—

Here is

ad that SOLD AND PRODUCED RESULTS:

TRAMP!

TRAMP!;:

One hundred and thirty million

pairs of feet can
wear out a lot of socks and stockings every year.
That's one of the reasons why investors in well

In the past
with Blyth & Co.,

Mr. Shelly was

CHRONICLE

Montgomery St.

405

FINANCIAL

Newspaper Advertising
In every community today

has joined the
Mtchum, Tully & Co;,

AND

aggressively managed hosiery companies
well—both in good years or bad.
that investors who
are interested in looking into a very special situation
in the hosiery field should write to us for informa¬
tion regarding the common stock of
situated,

Los

CALIF.—

with

sociated

Fairman

Co.,

ANGELES, CALIF.—Rus¬
with

has become

con¬

Hogle & Co.,
507 West Sixth St.
Mr. McClure
nected

with Nelson Douglass & Co.

was

he was with Robert C. Bolton

Donnellan

Co.,

Co.

Chi¬

cago.

for many years.
(Special

(Special to The Financial Chronicle)

LOS ANGELES, CALIF.—Ches¬
ter M. Leflang has been

Financial

to The

added to

Grutze

Chronicle)

ORE.—Albert

PORTLAND,

Sloan

with

Wilcox,

Wilcox Building.!

Surplus War Property Administration Established
Under Executive Order—Clayton, Mines Named
Roosevelt es¬
tablishing the Surplus War Property Administration within the War

The issuance of

Mobilization Office
ance

was

Executive Order by President
announced

recommendation

This was in further¬

Feb. 21.

contained in the Baruch-Hancock report

Byrnes, Director of the Office of War Mobiliza¬
embodying measures for "transition from a war econ¬
omy to that of peace." Along with
the announcement of the Surplus they leave the armed services and
to Director James F.

tion

War

Feb. 18,

Property

Administration

made known that Mr.

Byrnes
designated Will L. Clayton
and Brigadier General Frank T.
Hines for two key posts in the
was

has

war

Mrs. Anna Rosen¬

industries.

labor expert

berg,

Director
mission

for

the

and Regional
Com¬
has
one of

Manpower

New York State,

invited

been

become

Mr. Clayton, Hines' assistants. Associated Press
formerly an important factor in advices Feb. 21 from Washington
this added that Mr.
the. cotton
export
business
at reporting
duties
and powers
still
Houston, Tex., resigned as As¬ Hines'
must be defined specifically by
sistant Secretary of Commerce to
take over the assignment of dis¬ President Roosevelt in an Execu¬

demobilization task.

posing
surplus

billions

war

property.

dollars

Mr. Hines

tive

affairs

he has for

number

of years and, in addition, will di¬
rect •• "retraining
and reemploy¬

ment" of the rnen and

women

From the Associated

also quote:

"Chairman

will continue to administer veter¬
ans

Order.

Press

George,

Democrat

Georgia, of the Senate's Post¬
war Planning Committee, already

Securities

Gastonia, N. C.

Tel. 381

just presented an idea. The headline reaches

Notice that this ad

right out and grabs your? attention.; Short, concise, and right to the
point, it suggests ACTION. The main job of any investment ad is to
produce inquiries from qualified investors, or from people who
would like to become investors. From here on the sales force cart
build

clientele which is based upon

foundation that is soundly

The right

kind of newspaper advertising today can build your busi¬
which you have always desired—a place where

into something

ness

people come to secure helpful and intelligent counsel regarding the
second most important thing in their lives—their financial welfare.
The day when the financial industry begins to properly use the
tools of advertising and public relations in such a Way as to inform
the

public of the great good that the industry is accomplishing for
will mark the time when

both individuals and our country at large

really begins to play second fiddle in our land.
singing the lead tune long enough—we've got a great story
only tell it.
' .V

the demagogue
been

He's
if we

a
Surplus
Policy Property
that it poses on
$. ' v ■ \
Congress Board. * * *y
"Announcing the Clayton and
or the Executive should lay down
appointments at a news
the general policies of reconver¬ Hines
conference, Mr. Byrnes disclosed
sion to peace.
he had tried to
enlist Baruch's
"Senator George contended that

Saturday
a

basic

Baruch's idea

job

Justice

whether

was

Byrnes.'

'to do the whole

Executive

Order

under

However,

Mr.

said today that it is not

intended to
"Mr.

18)

(Feb.

issue

'bypass Congress,'

Clayton

will

assisted

services I'm

pacity.

administrative ca¬

But the veteran financier,

'elder statesman' and Chairman of
the
last

War

Industries

war,

remain

Hancock,

Board

in the

declined, preferring to
unsalaried adviser. Mr.

Director

Byrnes

said,

will continue to head a War Con¬
recprd with a challenge by representatives of interested
the Baruch plan, having said governmental
agencies
serving tract Termination Board."

was

prepared and which i&j constantly reminded of the substantial char¬
acter of the firm With which it is doing business.;
Newspaper advertising not only sells new accounts but assists
in keeping the old accounts on the books. People like to know that
the firm with whom they are doing business is in the limelight—
that it stands for something in the community that is worthwhile.

Byrnes

Commercial Bldg.

the

and

Co.

Illinois

Continental

Investment

In the .past

Wulff-Hansen & Co.

•

JACKSON & SMITH

Mr.

Financial .Chronicle)

S. McClure

sell

become

Goodwin, 265 Montgomery St.
Dickson was formerly with

&
to The

has

associated with Walston, Hoffman

850 South Spring St.
(Special

Dickson

Russell

At the present time we suggest

CALIF.—

FRANCISCO,

SAN

as¬

have fared very

to The Financial Chronicle)

(Special

ANGELES,'

James W. Watkins has become

LOS

comes

state

one

Some Pertinent Observations Regarding

(Special to The Financial Chronicle)

ably situated stocks.

-,,

dealer in

particular requirements

The Securities Salesman's Coined

response

only

proven

<25 Spruce St., New York 7, N. Y.

Shelly

Harry

II.

Inman

Beane, 221 Montgomery St.

(Special to The Financial Chronicle)

ert

Merrill Lynch, Pierce, Fenner

M. Anderson, 559 So.

LOS

CALIF.—

FRANCISCO,

Kenneth

LOS ANGELES, CALIF.—S. S.

COMMERCIAL

whole field of investment.

(Special to The Financial Chronicle)

SAN

Baker &

was

with H. R. Baker & Co,

em¬

ployment 1 is at a new all-time
peak and is certain to have a sub-:

Turner has become affiliated with

Brown has been added to the staff

level and is sure to have a sub:

LOUIS, MO.—Augusta M.

Union

CALIF.

Co.,

FRESNO,

your own

still consider the investment and

(Special to The Financial

and social hodge-podge

disturbing

Sons, Inc.

(Special to .The Financial Chronicle)

And the, foreign political
will be a

Empire.

St.
Mr. Schluts¬
formerly with E. H.

(Special to The Financial Chronicle)

ST.

with

affiliated

now

—

prepared

today for full information.

THE

man

Chronicle)

CALIF.—Er¬

Spring

Rollins &

ham, previously was with Paine,
Webber, Jackson & Curtis, John¬
son, Kase & Co. and Otis & Co. I

feel¬

ing of fear is unavoidable.
We
are in an election year, and Presi¬
dent Roosevelt may be reelected
for the fourth term, extending his

reign

Shepard

Commerce

ANGELES,

associated with Wyeth & Co., 647

CLEVELAND, OHIO—Judson J.

looked in formulating
r'M.

Spring St.

(Special to The Financial Chronicle)

during recent years. It is a possi¬
bility that should not be over¬

policy.

Co.,

nest C. Schlutsmeyer has become

■

\ v.k •

Eichler

to The Financial

(Special

meyer

and

Cleveland

period of advancing prices and with Murfey, Blossom & Co,
desire to spend a portion of the

funds that have been accumulated

of Bateman,

become important should we enter

ANGELES, CALIF—Ernest

J. Stoll, Jr., has been added to the
staff

CLEVELAND, OHIO —William
of control.
However, .the mone¬ L. Strong has become associated
tary
background must not be with J. S. Bache & Co., National
Mr. Strong
overlooked.
It is an upside influ- City Bank Building.
fence on stock prices that could in the past was with the Federal
be

available

BOX

Bridges
has
with
Central

probably the most effective would

Papers?

campaign

(Special to The Financial Chronicle)

be done and would be done, and

write

LOS ANGELES, CALIF.—Ruth
McKee
has joined the staff of

(Special to The Financial Chronicle)
Weeden & Co., 650 So. Spring St.
CHICAGO,
ILL. — Arthur
C.
(Special to The Financial Chronicle)
rencies, however* moneys created Sacco, previously with Alexander
LOS ANGELES, CALIF.—Wil¬
^ by governments -have' Ultimately' & Co., is now connected with
liam T. Dillehunt, recently with
sought their gold value.
There Ryan-Nichols & Co., 105 South La
H. R. Baker & Co., has rejoined
has been no monetary purity on Salle St.
the staff of Quincy Cass Associ¬
the part of the Government dur¬
(Special to The Financial Chronicle)
ates, 523 West Sixth St..
ing recent years that would give
CHICAGO,
ILL. — Robert
M.
confidence that things would be

"different this"time;' I do-not wish

—

James

St.

Broad

advertising

along lines that have been tried and

low

cost

rick Company, 634 So. Spring St.

Collins is with Trust Funds, Inc.,
89

plan

you

designed to be fitted into

with Searl-Mer-

now

of ads

series

The

(Special to The Financial Chronicle)

LOS

(Special to The Financial Chronicle)

successful.

E. Schnee is
•v

—

expert in FINANCIAL DEALER ADVERTISING has

Spring St,

'■

you

the staff of Lester & Co., 62 i So.

(Special to The Financial Chronicle)

•;

Do You Advertise In Your Local
If

•

809

And Rationing Be ExtendedJnto Post-War feriod?

Should Price Fixing

—

WtpXWi/'' ,.J§P

in Congress from

favor of

into the post-war

rationing over

down

period. Put me
"agin' it," and
I

Comman-

der

in-Chief

|Kr
|||f

will make the

^P;^/

enough

goods will

it-

||^|

this^ demand

Wil^\

'Jr

business

the

men

:'m

Saving.'Facing

WC; /'5Mm

this

ft.

uihe of liquid

''y-y

m/y:

•

businesswhat-

by
vol-

record

■

be tremendous

* ^■Hj

§jp;*

the

e r

eliminates

! handle,
better

will

irl:

busi-

oughly

aca-

b^ ^^

demic.

MALONE

have

Co.,

cgn

stoppedy ;immediately that

* - James C. Dolley ^
: /- • r"

has been com-

•

Crawford H. Ellis /

•

ogsbury
Camera i &

Fairchild

President,

reconvert¬

R. E. Gardner,<Jr;7? ing war plants,

3>^3iv:J.''S.'

Instrument Corp., Jamaica, N.

should be released as

the

is over.

war

to be

They

may;

tapered off.

some

\A' 1
mm ■

YMm

■

and

Hon. Wat Arnold

pray
that he
will stay home

feel that some •

conducted

having

made

and

ations

and I

business

this peace-making

iflll

serving

and

having had

get along with them just as

American

individuals

and some of our restric¬
tions appear to many of us to be
unnecessary.
Perhaps if we knew
the
reason
our
views
would

PIIILIP A. BENSON

pears

system that

under

discretion

sound,

bailiwick.

|K«|S

o^mkefi^n|

government controlled econ¬
continued after the war and

omy

led

possibly to

breakdown of

American

our

satisfied

not

paid

and proper and in

just

was

work

the

with

right to change. Busi¬
such wages as it felt

he had the
ness

to work, and

hours he wanted
was

ac¬

cordance with the earning capac¬

ity

Today

employee.

the

sy te^m of in-^
the

after
A. Benson

Philip

of victory.
armed

must

provided

for

day
The

forces
as

long

compensation and

fixes the

enterprise which
greatest nation
people have re¬
sponded to the call in most every
line and production has gone far
made

has

earth.

they

perhaps

some

essary.

crease,
used

will

the

are

service

relief may be nec¬

these

demands

supply, of all

the

increase,

and

civilian
.

de¬

things

fact

the
as

population

thereby

obviating

have done

the

Our

if they had

free to work

the necessity for control.
JOHN

work

can

work

believe

that,

road rates

hours than

Wiiii.

ever

this

War

II,

and

hope

see

are

rationing into the post-war period.

time we are going to

Some

Dr« C. Wm. Phelps
;

^the

•.

•

The

have

t a k e

Tootle-Lacy
Mo.

concerned, has been

MOWBRAY

Wilmington, Del,
As

war

measures,

of the

opinion that price fixing and ra-

tio^ing,

der

^when ^ ^ ^ >•>

working,

ing

economy.

government

FRED

for the people in

days

direction

referred

and
,

of,

govern¬

agencies,

to as-. Bureaucrats,

entirely eliminated.

J
W.

ELLSWORTH

Vice-President,
The

Hibernia

•-

National

terminated
as

emergency

Therp

Thomas J. Mowbray

practicable when the
ceases to exist.

is great possibility that

may be found to continue
indefinitely as part of the

great care when we come to the
actual end of the war.
My guess

features, as well
other evidences of regi¬

is that these two
as

many

mentation-which

excuses

which

during

necessary

evident

intention to

American

sible.

people

regiment the

far

pos¬

ple
to
a

are

doubt

wartime,

are

but

condemned by our peo¬

during
continue

year

peacetime,
on

for six

may

have

months

piled

This
an

during

the

argument,.?! believej
erroneous assumption,

namely, that the increased produc-.
tion after the war can be offset

the

tioning after the War, it occurs to
that that is a question which
will have to be considered with

that

feel

.,,

against the accumulated war pur¬
chasing power. As a matter of fact,

•

Bank,

they should be

power

makes

Graham G. Lacy

New Orleans, La.

quickly

;

Regarding price fixing and ra¬

and

[

W. C. Mullendore '
goods
;
in the market to absorb the buy-!
be more

war.

contr oiled

have
in

way,

that there Will

;

them

post-war

often

\ r

National Bank, St. Joseph,

THOMAS

for less money.

ment

price fixing

They

put in long hours

extension of either

bWBM

President, Security Trust Co.,

they

been increased

have not

President, Newburgh Savings
Bank, Newburgh, N. Y.

definitely opposed to the

think [ that

i TI

Vice-President,

before in the his¬

nation.

the people and

Angeles, Calif. : s
the extension of
price- fixing and; rationing into:
the post-war period is dangerous^

14• 7.Ltd., Los

for many years and. no
doubt will continue indefinitely

been

proportion to other labor, but they

the

period

•

Executive Vice-President, ;
:
Southern California Edison Co.,

[ I

GRAHAM G. LACY

Deraimus'

not drawn overtime and their sal¬

in effect

they have worked longer

in many cases,

CORWIN

for

practical

they had in War I.

Only executives

have

rationing

sele

•

C. MULLENDORE

matter, price fixing, so far as rail¬

People, as a whole, have done
part1 [and
perhaps would

aries

£k

[after the war.
atte ntion

their

tory

enterprise
affected. This is my

opinion.

for'

out

Short

long

honest

^ continuing. IhKct,
in

beyond expectation.

elect

case

made

definite time limit should

established by Congress so that

would not be

•

of free

system
on

■

good
may
be

fields

with the em¬

little authority rests

ployer to decide what is fair.
I am a- great believer in
our

\
James S. Ogsbury

re-

reversion to individual

g§

fairly

and

board, which knows nothing about
the conditions or the value of the

job,

|g|§

temporarily
pr ice fixing

change, but Americans have been
President, The Dime Savings Bank a free
people since the beginning
of Brooklyn, Brooklyn, N. Y.
of the United States, and a person
It would be a great misfortune
was allowed to decide how many
a

it
ap¬
that- a

moved, vHowever,

ism,

rule,

do under rules and reg¬
ulations which they feel are not

you

mediately

system
of
evolvingFasc-

c. M. Maione

tionswereim-

than they

get along with the folks in your

if such restric-

setup, which is ; ;

people,

better

much
leaves

p;/i

|fl

the present

The

conserve.

that will be satisfactory.
see, the radio and the air¬
plane have made all the nations
of the earth our next-door neigh¬

war,

may

p$Jjgi

bound to arise

the

City, -Mo.

Co., Kansas

people had

been asked to

peace
You

are

\,/

after

possible

Southern

resulted-

have

practical experience to
really advise and tell the busi¬
ness man how to negotiate a world

City

I believe the

cessation

which

be able to
withdra w from

Kansas

Railway

mmwm

that better re-

enough

bors, so we will have to learn

The

con-

MM's

prevent peaks

While I hope
that, as soon as

President,

in doubt about deans of

colleges or universities

own

value

job;

W. N. DERAMUS

little

been

of his oper¬

success

haps unneces-

'0m.

V $&£

and let some good,
hard-headed
business man who
knows the value of a dollar and
has worked for a living as well

II.wk

ble for matepossibly rationing for, continued, a. very sharp price rise'
rials
and
would appear to be inevitable.
a limited time until we can have
things that
an
opportunity
to
establish
a
DR. CLYDE W. PIIELPS
some
central
proper
balance
between goods
University of Chattanooga,
control should
available and purchasing power.
Chattanooga, Tenn.
be exercised to
controls and

let's hope

Y. I

My ow'h opinion is that it would
•be' wise to carry price fixing and
;

Churchill,

•

ence

ffiBP

•

con-

cerned.'1

SB.

the,

be for all

have pleted.. Also coloring the. picture
■rationing :[V o n^'vi^:
' wilF'be. a huge post-war foreign
;for 'possibly.temporary controls demand for American goods re¬
soon
after the close of the war
I fY
sulting from the use of presently- ■-oneyear,mayare continued until a' better bal¬
as
possible.
We realize certain
•' for
two
if*'/
blocked dollar bMan(£S, [the prob¬ be
ance is developed between the law
restrictions 7
years, • a f t e r
if
of supply and demand,, the results able extension" of "lend-lease" aid/
are
necessary
If
the war. There ■ m
could be unfortunate.
I am in¬ and. the possible adoption of some
is -apparently
clined to believe at the moment foreign exchange stabilization plan
war,
and
it
to
be
lit
^
from information available to me such as that of Lord Keynes. Un¬ going
may be necessuch a scramthat
we
should
continue
,;g
s#
price less some sort of price control is

of all kinds

experi-

demand

backed

Government

and it-will.-be

the

think

s o o

accumu-

for

With respect

price fixing
and ■; rationing,

•

/',V*
y.

essential.

lated

Unless

prac-

continuing

•

desirous

n o

opinion that restrictions

It is my

had

not

has

tical

♦

The

may

President, Guardian Trust
Houston, Texas

Jpk

the peace conference.

C. M.

going

did,

to be extreme-

•

Co.,

Insurance

become thor-

Friedman

%
-

Wilspn '

that

r/:y•;':'•'?[[

lr<

blunder

same

question

QMBIIfflH

v■1

afraid

our

pe-

policies

these

bfeing

post-war

Pan-American Life •
New Orleans, Lai

President,

thought to the advisability of con¬ price controls into the. post-war
tinuing some sort, of price filing,; period, I will say that I: believe,
and rationing program into 'the some price control program then

Mjj^ /*p9fl| already there
Bilk
"is a huge overjjBH supply and the

not in
carrying price fixing and
indeed,

As to the wisdom of

deal

good

should be
J§f gradually rewif //rdMR ^axed as soon
WSm, TB|I fls conditions
I
Perm^- In fact,
jL
gjfcipB in some items

Missouri

sir;

mm
I J§

IION. WAT ARNOLD

No,

given

ymffi
ft

tioning program were closed im¬
mediately after the war is over.

Representative

have

•

:,$[% ;:;i' Austin,:1 Texas

"Mo;^

that

believe

JPlll

fixing and ra¬

period,

war

and the weak would

if the price

rationing

BP*?*5}® in the post-'

rich and pow¬
erful would have the advantage,
suffer

price fixing

and

all times the strong,

and the poor

With respect

■

beginning
gradually, so that our people will
all be protected.
Of course, at
be relinquished

may

St. Louis,

N. Y.

New York,

CRAWFORD II. ELLIS

University of Texas, y

The

Partner, Reinholdt & Gardner,

Consulting Economist,

C. DOLLEY

DR. JAMES

E. GARDNER, JR.

ELISIIA M. FRIEDMAN

(Continued from first page)
price fixing and rationing should
continue after the war is over
until such time as the two policies

Thursday, February 24, 1944

CHRONICLE

THE COMMERCIAL & FINANCIAL

810

after the return of peace.

post-war production will create
purchasing power. As we

its own

produce goods, we will also . pro¬
duce
an
equivalent purchasing

that

trying to outrun

the inflation by

increased produc¬

power,
tion

trying to outrun

our

shadow.
I

therefore

continue

reason

fixing

see

price

the

ground that it should be continued
until production in the post-war;
period gets under full swing.
If
we
do not very rapidly release
these

controls

the

psychology

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4258

159

It is my

tion

lief

and

•

■:

have

been

engaged

the

aviation industry more or less for

the war.J Cer-

the past 15 years.

It, is undoubt¬
edly the most regulated business

*5'".

•'

•

■

mnrp
x x yj a v*

•

than
d
x
v *

*•

six
o x /»

•

X av vyy

sudden

n o

rtrs

hot--, discon¬

termination

tinue all price

our

too

me.

'advisable, but
E. Willis

Sen.

te'r

for

J its

funds,

etc.

elected

this

labeled

the

•/./•' 's'i-y

<•".

I/am opposed to extended Gov¬
ernment control in the field of
business

com-

where

life

civil

and, except

essential,

absolutely

1 i

be-

s u c

e v e

dangerous

which

Administration

continua¬

the

was

Democratic

Party,
yvhich has always "been an advo¬
cate of State
Rights and limited

tion

Federal control.

democr at i c

they have sold

the

down the river

our

Republic a

to say

sorry

can discontinue its system of war¬
time controls will depend on the

post-war poli¬
contemplate active participa¬

tion

international

Canada is
this

should "not
ment

expect

to.be

able

commitments

use

our

processes

cal

re¬

course—eliminating details of
fast

the international

trols

can

removed, without
chaotic disturbances in

creating

the economic system, the better.

own

p e r

been
elected.
The
damage which has' been: dbne- Will

repair, and I am in
eventually return
tfv: hopes We' will
to ; government: by and for, "the
people instead of using these halfbaked European ideas which, are
/ how sb prevalent in/Washingtonv

and

government should

direct, to advise and to reg¬
ulate, but only in so far as these
be to

activities, may - be absolutely nec¬
essary.
The greater the economic
freedom

people
the

which

certain

restored to

democratic

Representative
1

pressing prob¬
of

lems

sup¬

ply and of dis¬

tribution,..

es-

THOMAS GRAHAM'' :.J
'Manager^Ihyestmerit Depar

their

clusion of the

and ra¬
tioning should
be

X1!' - i'."' ''
war. ThiSAVill
likely be emphasized by the neces¬

there¬

soon

after

may

possible, al¬
though I can
readily visual¬
ize that

far

In view of the uncertainties of
the :post- war. periodj it is/almost

■

/should only: be
kept while it
-

is in
lic

pub¬
est,
1/ think

and

price ceilings andAi^fionjngjin
country.: However,/ni/mo in¬

stance

mining

factor

absolutely necessary. ih/rsiderj to
provide for a tempbrary-Misposi-

war.

people are
reasonable, \ I
think

trol

all

con-;

off

this

Jan

;

■

*•>

to'

-production

our

rationing should be terminated

the

earliest

possible date fol¬
lowing' the close of the war. j

DAN'W. IIOGAN

City National Bank &

r'-y';^r-"'vV•:

' -"

controls- would

\ J-

function

will

cratic control end

tem

have

' V'

;

have

hesitate'' to

comment

and

"the"

with a'

sys¬

which is un-American.

My
opinion is that a great deal
that is going to happen after the
.war
depends on the courage and
foresight of bankers, investment
frank

dealers, lawyers and business

erally.
■;

gen¬

If these elements just roll

over and play dead as they
for the past 12 years, I am

have
very

apprehensive for the future of the
Individual

Enterprise System.

'/.'/%?R.

PRESTON

President, Hamilton National

:
.

{

Bank, Chattanooga, Tenn.

.V It

may

be necessary to tempo¬

but I do not believe either should

continued

indefinitely.

ardent advocate of the free

terprise

system,

Government

business just

and

should
as

soon

think
get
as

out

am
en¬

the
of

possible.

the

t h

from
a

war

supply of

ities,

War"

should

i nV

used

blown up

moment's

notice.

inclined

think

that

should

gradual proc¬
ess running for

Dan

Hogan, Sr.

necessary

justment

Canada is

of such commodities.

con¬

shortest

possible time
orderly ad¬
prices and the supply

large scale. J
As -far as
,

to make

FRANCIS

shall,; pro¬
ceed, as rap-J

idly
trols

The .prospect
not

continue

tensity

;/%;'/;/j/j

until

all wartime

this

that
in
a

the

its

possible.
war

may

present

final -decision

P. McGINTY

in¬
is

utica, n. y. .;:jj;{/j/::;

I believe that it will

con¬

sary

for

some

both

neces¬

time after the

war

these

controls, if
possihle adjusted to function fairly
use

under

lutely

essential

controlled
war

era.

was

growing

J-;v

National

Bank

and

private

Government

control

enterprise should not
further than neces¬

be carried any

to "bridge the gap" to pre¬
breaking down and unnec¬

vent

suffering and confusion.

JOHN

D. IIOLLYDAY

ten¬

President jj / //-:J
Nicodemus National Bank,

J/^'.

the
The

mar¬

You, of
know

the

most

disastrous,. in-

Robertson

ing and rationing ought to be dis¬

J'j; JJ pensed with

J'-J;'-/5/'
No,

World, War

Ilagerstown, Md.

I definitely feel that price fix¬

course,

flation

post¬

My personal opinion is that reg¬
in

was

year

that

the

President,

First

ulation

one

and it

ket."

un¬
un¬

Galveston, Galveston, Texas

essary

money

inflation

The

sary

sion

have

FRED W. CATTERALL

credit in¬

abso¬

jj:\j".'j;: J

■;

.<•

flation, and of
price inflation,
so

for

worse

the

currency

and

following

type of inflation control
til we are past the threat of

20, 1944.
"As
already
indicated, the
of

Therefore

some

Jan.

year

that.

World

oc¬

curred between the end of the war

This

and the fall of 1920.

war

will

probably be a $300,000,000,000 war
as against a $25,000,000,000 World
War, No. 1.
Inflation potentiali¬

the

sible moment.
that

earliest

pos¬

I have understood

there

may

is a possibility that it
be necessary to extend it for

short while after the conclusion

the war, but I am definitely
opposed to extending these regu¬
lations

for a period longer than
approximately in the
proportion.
Inflation fol¬ absolutely necessary
I feel that we should return to
lowing World War No. 1, followed
by the stock market inflation that our system of individual enter¬
collapsed in Octber, 1929, precipi¬ prise at the earliest possible mo¬
tated us into the worst depression ment after the close of the war.

ties will be
same

An agreement

between the War Manpower Commission and the
System, announced jointly on Feb. 14 by Paul V,
McNutt, WMC Chairman, and Maj. Gent Lewis b. Hershey, Selective
Service Director, specifically designates the part the two agencies
will play in returning the veteran to civilian employment. The an¬
Selective

Service

went

nouncement

Under

the

terms

say:

the

agree-3>-

ment the Selective Service System

have

the

specific responsi¬
bility of returning the veteran, if
he so desires, to his old job. Re¬

sponsibility for finding him
job

will

with

rest

the

a new

Veterans'

Division of the United States Em¬

ployment Service, War Manpower
Commission.
The Federal Civil Service Com¬
mission will

jurisdiction

continue

exercise

the placement of

over

the

economic

conditions

reached, but rather that we may which may be prevailing at the
have an increase in intensity fol- end of the war.

power Commission to assume the
responsibility of placing returned
veterans in new positions through

the facilities of that
/

organization.
'The War Manpower Commission

has'a Veterans Employment Ser¬
vice in its national .headquarters,
State
Veterans
Employment
Representative in each State ad¬
a

ministrative

office, and a local
Employment Represen¬
tative in each of the 1,500 local
Veterans

veterans in the Federal Executive

offices

Civil Service.

ployment Service of the War Man¬

The

text

;

the

announced by the

....

agreement,

WMC, follows:

power

Statement

The

War

The

Director

vice has

Selective

Ser¬

two-fold responsibility

(g) of the Selec¬
tive Service and Training Act of
These

are:

1. To establish

Personnel

Di¬

vision for the purpose of render¬

the United

Commission.

Em¬

States

It will be the

responsibility of that organization
to

Joint

Manpower Commission And The
Selective Service System

conduct

designed

veterans in

effective

place

the

program

returned

positions.

new

The reintegration of the return-:

ing veteran to the civilian econ¬
omy of this country is one of the
most important duties of the na¬
tion, both from an economic and
patriotic point of view. It is par¬
ticularly important that the agen¬
cies of the Selective Service Sys¬
tem and the War Manpower Com¬

ing aid to veterans seeking rein¬
statement in their OLD positions.

mission cooperate with a complete

J 2. To establish

unity of

Personnel Di¬

vision to render aid to veterans in

seeking NEW positions.
The

Director

vice in carrying

Selective

Ser¬

out his first duty,

establish

render aid to veterans seeking

Personnel

Division

reinstatement in former positions,
has established a Veterans Per¬

sonnel Division (heretofore known
the

Reemployment Division).
Under the reemployment policy
of the Selective Service System,
the responsibility for securing to
veterans their right of reemploy¬
ment

has

State

Directors with authority to

been

delegated to

the

set up

within the respective States,
the machinery which is most 'con¬
ducive to securing such reemploy¬
ment rights for the veterans.

with
their Reemployment Committee¬
men, will be charged at their level
with the responsibility of render¬
ing such aid as is necessary in or¬
der to enforce this right.
The

Director

Selective

vice,

Ser¬

in carrying out the second
mandate of Congress to render aid

to veterans in

purpose.

While the reinstatement of vet¬
to

erans

;

President, First Bank & Trust Co.,

Coleman

possi¬
remove
soon

nothing is

The local boards, together

ble, to

than

"Chronicle" of

fixing";
rationing
come

the

c e

have

disastrous
have

dam

both countries

and

country,-:
although in
i

and

your

p r

cer¬

think it would

o s e:

te d

and

sale

tain commodi-

nomic policies
in
Can ad a"

during the

cerned, .1 hope

rarily extend price fixing and ra¬
tioning into the post-war period,
be

cb f

both

dam

quite.V
e

economic

a n

extent of

different

rationing

have formed

bureau¬

First

1940,

Price fixing

price. fixing and ration¬
ing in the post-war period,:.as'.that
kept.
"
^ * i
question affects the United States.
There is no question about it
Wej have fol¬
that if a private enterprise doesn't
lowed
the

No,

under Section 8

f Trust Co., Oklahoma City, Okla.

v..v?

Co., I'
Montreal, Que,,. Canada

some" of.

Chairman and PresideM,

Thotnas Graham

bilitation pro-

i gram.
In any
event, I believe the present plan

President,

./ D. C. COLEMAN:;:^.

Angier L. Goodwin

Canadian Pacific Rail way-

situation,.

then

•

///

inflation¬

ary

leads

part

farm,-factory and mlne/to^re?
widespread sufferihgg^:h^os
possibly revolution.
" "'7'"".

im¬

course,

favoiv:feuch;iunless

and

mediately, but,
of

vent

should be

taken

tion

would

agrees

with re¬
spect to
the
foreign reha¬

deter¬

the

States
to go

this

the

after

War

how

far the United

sities in

that alone will

much

impossible to visualize, the neces¬
other parts of the world
which may) requireJaiy ^t^sibii

the

inter

rationing is
concerned,
it
will
depend
as

the

concluded

Control S

standpoint of what
post-war policies for World

have

Selective Service

war,

first year

Louisville, Ky.
sity for a widespread distribution
1 X have been studying for .years pf food, clothing, fuel .and medical
small business financing and have supply / apd j attehtid^Sid'CvariMs:
always felt that this is the mos, parts of the world Vin1 order to
important problem we V haverXq avoid chaos and to stabilize gov¬
ernment;
face after the
''J -"
■

the

The kind of in¬

could

World War No. 2 would do

j' Massachusetts

}

War.

From

J-'

history.

our

flation

be rapid

my/'.opinion,

Iv: ;

Co;,

that

price fixing
should be terminated immediately
upon the con¬
•

d' Schiffie; •-Closing of the

Rep. A.

Congress from

following t h e

the

country,

will

pecially: for
the

Congress from

/ Virginia

/////J;'-

i o d may V HON. ANGIER L. GOODWIN

usual

take years to

;

philosophy is that the

functions of

present {un¬

have

Bond

firm

the

should rather expect that we shall
have to proceed along an empiri¬

they

Bankers

make

moval of wartime controls—either
as
to. method, or as to date.
I

'economic progress
government. V
and sustained.
The post-war

The

Govern¬

our

concerning

-100% and have done many things
which they do not favor merely
to continue In the office to1 which

commerce.

deeply interested in
particular question that I
so

situation makes this possible. • ' ; ;
Without forecasting what policy

over-

party

military need for wartime

one

pub 1 i

not

HON. A. WILLIS ROBERTSON

Representative

more pertinent than the statement
controls which we experienced in
in "The First
1918 and 1919.
j>
Year After the
The extent to which any nation

control

SCIIIFFLER

Representative in Congress from will be adopted by this country,
I consider the sooner these con¬
V
J West Virginia
-

nittees, waste

not

longer needed.

HON. A.

the

supply of

se-

criti-

me r

o r

{jjwKXX_■; /•<?<V.•<•?::/*

tinn went into

cizing

•

•J carry it on af-

present
Adihinistraw

ver.ely

.must

The

office after

not J be

doubt

would

tem

over

so on

suit

present

•

■

war

economic :sys-

fixing and ra¬
tioning a f t e r

extent to which its

ize
t,',

will

wartime

progressively.

cies

months. I real¬
•"

that

remove

tinued/for

fed up with it
that they can-

the

tainly not con¬

in America,
and. 1 am., so-

believe

anticipate .the sudden termination

ta¬

pered off as
quickly as
possible after

/J-;.,

possible

of the

rationing
be

comparatively long
diminishing intensity,

controls

fixing

should

President, Piper Aircraft Corp.,

.;//•/:; J Lock- Haven, Pa,

be¬

both

that

price
t. piper

leads

Indiana

certainly means death to the
free enterprise system.
JJ-.J/v:/

period

from

Senator

States

United

war, we may not get rid of them
for years, and any-long continua¬

;

lowed

HON. RAYMOND E. WILLIS

which will exist at the end of the

their former positions is

primary objective/of the Vet¬
Personnel

erans

Division

new

the

placement of veterans into new
jobs is a primary objective of the
USES of the WMC, ours is a joint

effort, whose objectives must be
accomplished in unity and coop¬
eration between the two services.
The

employment responsibility

for veterans of all previous wars
continues to be that of the United
States Employment Service of the
War

Manpower Commission.

Laurence Frazier Co. Is
Formed In New York
The

Frazier

ence

investment

firm

City

Laur¬

Co., with offices
Street, New York

Rector

City, has been formed to act as
brokers
specializing in foreign
and
are

unlisted

securities.

Partners

Laurence S. Frazier and Anna

Frazier.

Mr.

Fraizer

posi-1 merly
a
partner
tions, is requesting the War Man- Free & Co.
securing

Selective Service System and the

was

for-

Frazier,

for many years

Investing Trust Funds Under The ;

ently

and
depreciation.
closely
approxi¬
mates book value after adjusting
the property account to original
Market

(Continued from page 787)

■

however dark and

and

be,1

difficult the times may

cost

uncertain

future, he can bring to his
role of trustee all of the ability he
the

possesses, with a
tificial restraints.

minimum of ar- |

hot devoid of risk

His position is
or the weight

but no Massaheard to

responsibility,

chusetts trustee has been

tive bond section for a trust by a

advocate, at least publicly, a dif¬
and narrower investment

railroad issues,
plus a scattering of utility, Indus-

operat- j government and

under the restrictions' of. a
legal list after breathing free air,
he would probably soon be strick¬
en with a malady akin to claus¬

ing

the

;

trial, and other bonds, and some
municipal bonds where the tax
status of the beneficiary supports
such

trophobia.
^
;, The purpose of this discussion,
however, is not to expound or
advocate the prudent-man rule*

luxury.

placing from

This contemplates

10% to 15% of

trust in railroad

of good quality,- with per¬

bonds

such

taste

the

Federal

consider what our

wolild
an
average
return
of
provide
4V2%, and many prudent investors
would
regard
the principal as
more safely invested than in any
available low coupon long term
utility issue at present prices. The
above example can be multiplied,
although in less startling degree,
including a number of utility pre¬

how

which
dence,
purchased
gence manage their own affairs,1 f°r investment by men of prunot in regard to speculation, but1 ^ence. and
wide experience. If
in regard to the permanent dis-1 an>' g'Y.en trust requires a higher
position of their funds, consider-' proportion of bonds
then .the
•t ing the probable income, as well chances are that it also requires
1
the probable safety of the emphasis on principal safety, so
capital to be invested.
| that the list can readily be pieced
'

;

are:

What

guiding1

the present

policies and practices of that genus
homo, the

T1^
:

tp
Fundamentally, he

Massachusetts court commemds
our

scrutiny?

con-

government
and
rajiroad bonds is simply that there
find the

we can

endeavoring his utmost to appi y

behind this

reaSonine

centration

bestPJlue

our

dollar.

investment

current

for

Sreadf-Underscore thd wprd "en-jalfocated'to'stcmks'irf utUiS01n^
deavoring," for he is too shrewd
and experience to suppose that he

Iwlhd
goi g

™

lvniriinni
rea™onab?e business

h
al

what.is

observe

tion, which is not to say that rail-

judgments

road stocks which meet reasonable
standards are wholly unavailable.
A swift excursion through our
fieIds of choice supports this pro-'

SfSS™7™»T tn
th^ S ic Hnin0 hi* iifmn*t

honest! tVterm

obtain

rafiroad
"Hanee and
nbn

other

and

satisfy Our desire for diversifica-

trrivA

dustrial

£ b™ mam^munic!"

value

received for every investment dol-

In the pursuance of that
homely practice probably lies the

lar spent.

^ ^.Slnf

}

i^fnH^ hi ^h

where

except

tlx

the

th£ reXient 0f income
♦m*tS?Sent h°pe f°r al- °f US aS |ds such that the return is clearly
^ f
Let

I above

brackU

ourselves as a

imagine

that

elsewhere

available

after allowance for income taxes,

prudent man supported by an and even then he is heedful that
adequate research staff, and pes- tirr^e changes many things.
For
sessing, for good measure, a little various and well understood reaof
that quality
of imagination SOns, there has been quite, general
tempered by patience and uutive improvement in municipal credit
shrewdness which is the mark of standings, but tax-conscious
a
successful investor. So armed, buyers have converged on the dilet us
examine
the conduct of minishing
supply, and only liquiprudent-men
trustees
and the dation by insurance companies
choices of investment open to us abd others for the
purpose of pur¬
.

closely

time permits

worth what they now sell for un¬
der
materially different money
and business conditions.
For the
remainder of his funds he has lit¬

from all income taxes to

aggre¬

but to

vestment

chasing

specific

in¬

doing justice to the income bene¬
ficiaries and meeting our test of

money's worth? Some

getting

our

6uggest,

as a way

bonds

out. the purchase
carefully staggered

maturities,

that over

the funds will

flow

period

back for re¬

sion

for

sinking

purchased

once

stocks

above 25%, with 35% fas a fair
quently said that preferred stocks
median, figure. Selecting a group
are an undesirable type of investr
of specific trusts where a Boston
ment, possessing most of the disT
trust department has had reason¬
advantages of both bonds and
common

stocks

of either.

and few of the
Like most gen¬

rank

issues offer

vailing

factor.

and thus, in
the end, product £ reasonable re¬
Such

sult.

reallv satisfy:

the

urogram

does

not

t^d; rea m reman ts of

trustee- for,

admitting

that it

rvf principal,

do^s well bv

For

whollv.inade-

reward for

the

illustration,

term utiitv

about

mon

•'
"
typical long

mortgage issue of

ondary calihov
on

stock of

sec¬

been available

3 20% basis.

with

risk

added

The

com¬

quite similar com¬
special structure

it is too un^t^dfui of +He immedi¬

pany,

ate reeds 0^ tho

comprised of 10% senior securities

life tongnt.

often than ^ot tUp nrjrosrv
in thp prooti'on of jho
som^

better to place the

90%

common

"\yhUp

hovo rn^t'iritv

me-^ts. ill most f»mds

and

rpn-nvo_

wmdd do

emphasis

upon

equity,

purchased to yield roundly

can

Its earnings have covered the
rent

dividend

rate

6.50%.

in7.each

cur-

year

that

the present position
to reflect fairly; its

denied the use of Series E
bonds, ranks Series G Savings
bonds next in attraction, for they

eralities, this one does not stand
close inspection.
Numerouss re¬ views, it is interesting to note that;,
the proportion of common stocks
cent
examples
could be cited
where bondholders have found it ranges from a high of 62% to a
low of 14%.f While representing

tee,

the advantages of a fixed
of redemption prices, a

possess

schedule

privilege of redemption

valuable

par in the event of death ter¬
minating the trust, and a reason¬
able final maturity date.
These

usually take care of the bulk of
his prime
where

quality needs, although
liquidity is desired,

some

Treasury Certificates of Indebted¬
ness are a good substitute for ex¬

can

impossible to exercise effectively
legal rights and remedies

those

supposed

which

they

theirs.

It is also hardly open

debate

that

had

preferred

were

stocks

even

trustee is bound to study

cial features of

payments than the bulk of
the
best
grade common

wishes

same

factors of easy money

the

the spe¬
given trust, the

trustor

far

ail, of the available
bearing on the specific

known, and
factors

;

fund, especially the circumstances
of the

stocks.
The

extremes; this Wide variance de^"
serves'* comment.
The
prudent

good grade have exhibited sub¬
stantially greater regularity of in¬
come

said

beneficiaries, before laying
an
ihyestment r pattern.

down

Moreover, he is governed by what
good value so
appears to be attractive invest¬
The material price advance en¬ scarce among bonds have operr
ment value when he has funds to
joyed by the railroad bond market ated in almost equal degree on invest. If stocks
appear to offer
during the war is reason enough preferred stock prices, and the better relative value than bonds
for caution, but good issues are trustee is making a permanent
at present, his tendency will be
still available at yields of from contract at a fixed rate, and can-1
to buy them somewhat more free¬
3.75% to 4.75%, and in some in¬ not ordinarily get his principal
ly. The trustee has a duty to keep
stances even higher, which stand back through maturity or sinking
his funds invested and the purely
careful inspection as to security fund operation, as in the case of
fortuitous factor of when cash is
and protection by normal earning a bond, but must depend on the
available causes considerable va¬
open market, notoriously erratic
power.
While wartime traffic is
riation between otherwise similar
preferred
issues under trusts. Off to a favorable start,
transitory, it has reaffirmed the among
basic and essential nature of the conditions of adversity. The pru¬
a fund has an advantage likely to
industry to our economy.
The dent man, therefore, will, cur¬
persist for many years. Not only
earning power of many of our rently limit his total purchases can no blanket standard be laid
railroads is subject to no wider of this type of security to a mod¬
down in advance as acceptable in
fluctuation than that of other basic est
amount, probably no more
trusts appearing quite similar on
industries in better investment re¬ than
15%
to
20%
of a fund
the surface, but it is worth noting
in
unusual cases.
He that
pute, but on it was imposed the except
any set of ratios, however
issues worth based on
weight of a heavy debt structure; finds only those
experience, is essentially
We have learned this latter lesson purchasing
which
better
the
arbitrary and something less than
income
from
to our cost, and also the wisdom
comparable bonds
holy writ. None has judicial ap¬
of diversification. It was hot un¬ by a good margin, usually not
proval. ^.
than
1%
to iy2%.
The
common
for trustees to have as less
In the minds of many, the cali¬
much as 35% or 40% of a fund in penalty for poor selection will
ber of common stocks is fully as
railroad securities, so that it is- jirove fully as serious; as in bonds
small wonder that losses ensued at prevailing prices, but it still important as the proportion held,
cess

cash.

3. Quite
ture.

apart from financial struc¬
systems with good

choose

life tenant can scarcely traffic
prosnects and- favorable
hope for relief during his lifetime. operating ratio, free of such draw¬
A reduction of quality standards backs as heavy terminal costs, or
supplies no remedy, for second short average hauls. :■;:%;£■
"Uate

start

merits

holding of $5,000 principal
amount. Following this, the trus¬

which have

made

raises our second question

which

purchase.

of what to

This in turn
of

is almost inseparable from that

that

trust,

the

freedom of action from

able

gate

present

investment I under: success! ve pre-

conditions,

enlarge;the ,Scope of the rule.,
survey -iri ourTowri trust

quick

department reveals very few, well
under; 5%, cohtaining;fahy limita- i
tions narrowing the rule, while a«

present greater oi: lesseE degree.
; In the, usual trfust; ;the consensus
serve a distinctly useful although
in" Boston appears to favor! cur-.
necessarily minor role in building
rently a common stock ratio runup the average income return of
a
trust fund.
It has been fre¬ iiing "under 50%, arid! probably ,
Preferred

funds,
for

seek

government

new

has placed the municipal
under any price restraint.

majority of his
reasonable in¬ substantial; majority enlarge our.
value among stocks.
J ordinary investment, powers; in

tle recourse in the
trusts

issues of a nature to justify the persis¬ appears that research can turn up
market tence of prejudice. In addition to a limited number of< 'issues with
vestment avenues must be
con¬
choosing individual issues with intrinsic attraction. U.'
fined to bonds, preferred stocks,
Refundings in the industrial and care, it seems wise to involve
The
suitability
of
common
and common stocks, since an ade¬ utility
fields
have
resulted
in three general working rules: 1. stocks for trust investment is the
schedules
quate supply of satisfactory real yield
comparing
un¬ Restrain aggregate purchases of subject of more widespread debate
estate notes is now available in favorably with the return from railroad securities to a reasonable than
ever
before, which
is a
current government offerings, and
only a few areas,
percentage of a fund.
2. Select wholesome condition for it will be
ill
omen
if unanimous
ap¬
r The
prudent' trustee
has
a utility mortgage issues have the systems with a satisfactory present an
disadvantage
of
distant or immediately prospective capital proval
hearty normal appetite for good added
and acceptance is ever
maturities with little or no provi¬ structure and financial position. achieved. The risks inherent in
bonds. Can we satisfy this while
discussion

Our

fund rather than the reverse.

Further, the principle of care¬
cheaper
than others of first quality. Thus fully selecting a trustee and then
the prudent trustee anchors his clothing him with ample powers
management
is
so
widely
fund
on
government issues, to of
accepted that most of our instru¬
which he adds: all those soun
ments
contain language tending
bonds he can find which could b

how men of pni-|Jamlng n0 single security
discretion and intelli- j Is
currently being

issues in turn now appear

bonds,

investment

is to observe

government

vestment

Savings

haps 20% as. a top limit, another ferred stock illustrations.
Exceptions exist, of course, but
problems 10% to 30% in United States Govthe prudent man is quite generally
are under such a standard.
This j ernment issues, with more in unmore interested in utility and in¬
rule was first enunciated by Jus- I usual
cases, and allowing 10%,
dustrial stocks than in obligations
tice Putnam in the celebrated pase! more or less, for such other bond
in the same fields yielding typically
of Harvard College vs. Amory, 9 items as can be found which pay
2V2% to 3%, and for his high grade
Pickering 446, decided in 1830, in their way. In this manner, a bond
list totalling from 35% to 60% of bond requirements turns to gov¬
these words:
a
given fund can be constructed, ernment issues. Probably the best
All that can be required of a
bond value anywhere available to
trustee to invest, is, that he shall' ?;Smg probably not far from
the
in the
; conduct himself faithfully and
depending upon
the long average individual is exempt
term Treasury issues
exercise a sound discretion. He! ingredients are rmxed, and conrather

but

immediate

value, and

stock and Series G United

of States

chiefly

combination

judicious

ferent

standard; to the contrary,

value

•

standards, but he is the prudeht-man: rule for fully a
justified in paying top- century.'
The three important questions,
drawer prices for second drawer
quality. The latter almost surely of course, are how much of a fund
leads to future problems, and yet to place in. common stocks, what
it seems an almost inevitable re¬ to purchase, and when to pur!■:;
sult of indiscriminate purchases in chase;sound

meets

never

reasonable combination
authorities.
While subject to the the open market today. As in the »\In Massachusetts, investors have
of adequate security and a subbeen
partial
to common
risks inherent in stock ownership, past periods of high bond prices, long
sistence level of current income,
it is worth noting that the present there can be noted a tendency to stocks-and thus the typical estate
and upon principles of diversifiis quite likely to run well over
price is only 150% of the depres¬ relax standards, to accept the next
cation. ■ .
1 :
;
1
sion low, while the bond in ques¬ best, with the result that the yield half in securities involving equity
Any program of current bond tion is
selling at nearly 250% of differential between the best and risk.^ The Massachusetts trustee,
purchases must of necessity be
the low of its predecessor issue of secondary
issues has narrowecj therefore, almost invariably has
makeshift, but it appears possible
the problem of reducing common
to maintain acceptable standards nearly the same caliber. If a given appreciably. At such a point prime stocks to a reasonable percentage
and build up a reasonably produc¬ sum were divided equally between bonds invariably offer better in¬

satisfaction of knowing that how- i lindmg a
ever

back after appar¬
provision
for

adequate

maintenance

Prudent-Han Rule

Thursday," February 24,: 1944

THE COMMERCIAL & FINANCIAL CHRONICLE

812

timing,

when to buy.

The

be
are

objective of the trustee can
stated simply enough.
There
a

mon

the

substantial number of
stocks

com¬

available which meet

standards

intrinsic,; worth

the

prudent man. We cannot
here consider techniques of ana¬

ownership of common stocks are lyzing common stocks, but let us
known to all of us.
There take for granted a well established
business, financial strength, dem¬
seems no great weight of evidence
onstrated earning capacity, a good
to indicate that these risks are

well

record of dividend payments, cap¬
perceptibly diminishing and that,
common
stocks are becoming a able management, and some pro¬
Time permits no consideration more conservative class of invest¬ spects for growth and improve¬
ment in. position,. which are al¬
of a most interesting side aues- ment, for while corporations are
most prerequisites for a healthy
tion, as to whether a prudent trus¬ larger and stronger, with greater
investment.
If market
tee is ever justified in purchasing financial and technical resources equity
price were not a factor, the' trus¬
and
broader
bases
of
a bond at 50%
or 60% of its face
earning
tee could acquire- on any given
value,
power,
anly
lessened
business
Before leaving bonds to discuss risks are offset at least in degree day when he had funds available
a list of stocks which would make
stocks, it would be well for the bv
greater political and social
excellent reading.
But the very
sake of emphasis to summarize so risks.
essence
of
stock investment is
far as is p^ssib^e the guiding prin¬
This subie^t is so vast that we
that mice is alwavs and forever
ciple of the above nolmw
The had best rest on some observa¬
a
major consideration. The goal
prudent trustee is pot obliged to tions from
experience in Massa¬ of the prudent trustee is to build
purchase the very highest grad°
chusetts,- where stocks have been pn a well balanced list of stocks
of bond issues only and at all
at reasonable cost prices, for only
times, so long as what he does buy recognized as within the scope of
i

yolume 159
thus

Numbep,4258 1

does

serve

THE COMMERCIAL & FINANCIAL

equally well
tenant and

The record is

of steady finan¬

one

CHRONICLE

DIVIDEND NOTICE

DIVIDEND

cial progress.

The company is now
remainderman.
1
t
fully devoted to the war effort,
We can readily recognize that but
potential demand from its
certain chemical equities possess1 peace time markets is accumulat¬
almost ideal investment charac- ing,
and reconversion problems
;teristics but the trustee will pon¬ appear surmountable. Such a stock
der long before buying them at deserves careful study.' :
H;V

the

interests

life

U the present high multiple of earnings and dividends, with a limited

>■

apparent opportunity to

increase
until tax rates are
moderated.
A stock less widely
'V recognized and more modestly ap¬
praising, average earnings and div-'
idends very often proves to be a

earning

power
,

Where
and

has

the

dividends.;

and one-half

per

was

cents

The directors of

Corporation

record

standing
March

stockholders of

14,

caton

risk, but it places each
in the perspective of the

broader

business -aspects :of

its

J field. Trends of growth and de¬
cay, and of technological change,
best be so studied.
Moreover,
value is always relative* and any
can

stock

commdn

best be

can

meas¬

Unfortunately
any

market

stock

THE Boardthe Directors has this dayof following dividends:
declared

business

5% CUMULATIVE SERIES PRIOR

B.E.HUTCHINSON

regular quarterly dividend' for
quarter of $1.25 per share,
payable April 1, 1944 to holders of

length of time, but we should
their ^operation carefully,

judgment,

February 1(1, 1944

even

prudent

practical

difficulties

arise

other

stopks of quite similar
enterprises,
f!<>At present, seven major chemi-

one

comparisons

with

PREFERRED STUCK

formula would have universal

give an average, yield qf ,3.2%i
while eight leading aircraft manu¬

application. Moreover, the trustee
is under a duty to keep his funds
invested, which is a handicap in
achieving any kind of satisfactory
result, under any method, unless

facturing

treme

prices.

cal

stocks

selling

composite
of 21 times present earnings and
are

stocks, to cite an ex¬
example, sell at 3.1 times

current

earnings, /and. afford

cash return of 12.4%. The market,
of course, is apt to give undue;

weight to what is now happening
or
anticipated, and less emphasis
to

out-of-sight

•

fundamentals.

Hence, current price ratios

are

not

a safe guide to long term value.
"Witness the low investment esteem

of automotive stocks after the last
war

in contrast with railroad Com¬

stocks, .a- condition now re¬
Nevertheless, a persistent
tendency of a stock or; of the

mon

versed.

stocks in any industry /to capital-*
ize earning power at a higher; br

lower

ratio, than

stocks

common

is
significant.
Any
departure
from
such
established price relationships re¬
quires scrutiny. Ofter the reasons
are transient, and if the relation¬
generally

market

ship is below normal, an oppor¬
tunity for purchases may be in
the making. The prudent trustee,

trust

starts

time

low

For the present, the trustee de¬
on native caution and the

pends
hard

lessons

experience.
He
sees. 1944
as a sobering year of
fateful
decisions, both military
and political, certain to affect the
lives
He

the

and

fortunes

all

us.

recognizes that somewhere in
obscure

future

lies

period,

perhaps brief, of painful and

com¬

plex readjustment. His purchases
of equities will therefore be care¬
fully weighed and sparingly exe¬
cuted, but diligent search should
Produce some rewarding common
stock investments of

caliber.

prudent-man

This does not discourage

him, for good results seldom come
any endeavor without the
application of initiative, energy,

from

and

thorough attention to detail.

Thus

concludes

all

our

discussion of the

summary

too
pres¬

loss, when in his judg¬

.seems

wise to do

so.

By order of the Board,

tee, a pattern which can be made
to produce an average current in¬
return of 4%
funds.

come

trust

4j/2%

stock question is particu¬
larly to be regretted, for it has
obliged us to deal in unsatisfying
where
illumination
generalities

false

notion

that

flower, safety." As Justice Put¬
nam said, "Do what you will the
capital is at hazard." The trus¬
endeavors

tee

discover

and

the risk element in

measure

in¬

vestments, assuming those which
appear to him proper for his funds
and which hold the best promise
of

commensurate

£ reward.

prudent
not

Milquetoast.
and

cannot

obseryedj 15
is no Caspar
trustee is not

The
be

trust funds.

insurer

his

He can only be held

accountability for the faithful
performance of his duties. In this

his

sets

Massachusetts

standard

less

wartime

dends

conditions

and pay

earn

and

able

should definitely
eventual return to

yet

benefit by an
a

are

reasonable divi¬

peacetime

In some
demands for goods

economy.

cases, post-war

prudent-man

trus-

the

best

which

mensions

substantial "di¬

clearly being accu¬

are

mulated. While for
war

fate of the

excess

the

"post¬
profits tax

some

overshadowing' importance/

as electrical appli¬
automotive,' farm imple¬
ments, containers, chemicals, pe¬
troleum, many types of Consumers
goods and merchandising, and cer¬
tain producers of industrial equip¬

such industries
ances,

ment such as textile and food ma¬

chinery,

to mention a few. are
among those worth study. Tobacco
and utility stocks; may', have a
post-war' opportunity to regain
ground-; and deserve present con¬
,

sideration.

No list

can

all in¬

clusive: and any industry may fail
to meet trust standards on closer

examination.

■[ As

:!;

;v'Vi

example of what a pru¬
dent man might buy now, the
following is cited. The .stock of a
an

well established but not large fab¬
ricator of small metal products is
.

seling at about 11 to 12 times cur¬
rent earnings, and yields 6% on
the nresent
is

about

dividend rate, which

the

Only
outstanding,

years.

caoUal

average
common,

the

and

•

recent

are

net
working
equivalent of 40%
.

of the market value'of the stock.

COMMON STOCK

J. I. Case Company
v-/: /

■

Incorporated

■

been

record

the

business

March

.>YV

ration,

11,

JOHNSON,

•

March 31,

Corpo¬

holders of the outstanding ■;

poration of record

THEO.

payable

shares of Common Stock of the Cor¬

declared

1944,

dividend

1944 in Common Stock of the

Racine, Wis., February 14. 1944.
of $1.75 per share upon the.out¬
Preferred Stock of this Company has
payable April 1, 1944, to holders

dividend

standing
of

at the close of busi¬
March 11,1944, at the rate of

ness on

Secretary.

(1) share of such C-ommon Stock
for each seventy (70) shares held; ;

one

KANSAS

CITY

POWER

LIGHT

COMPANY

JOHN A.-LARKIN,
Hce-Pres. lUStcy.,.

First

Preferred, Series B
City, Missouri

Dividend

Kansas

The

February

No.

16,

1944

regular

quarterly dividend of $1.50 per
share on the First Preferred. Series "B",'. Stock
of the Kansas City Power & Light Company has
been declared payable April !.• 1944,-to stock¬
holders

record

the

February 18, 1944.

business

14, 1944.-VY
'V:';-'- Y .yY
All persons ho'dlng stock of the company are
requested to transfer on or before March 14,
1944, such stock to the persons who are entitled;

March

receive

the

dividends, hit;,;-v„:-v.

H.; Q.

DAVIS,

•

ELECTRIC

COMPANY

33 Pine
Tho

KENNECOTT COPPER CORPORATION
Broadway,

New

York

S. CHEROUNY,

March

record

February 28.
Checks

this

twenty-five

10,
the

day

[ '
/

cents

stock- i

1944
close

business

1944.

will

mailed

Cx,

16 Wall St.,
Transfer Agent., ■.
H.

Bankers

York

New
*

February

has

Directors

the Capital Stock of the Com-

payable

holders

dividend

pany,

February 18, 1944.
A cash distribution of twenty-five crnts <25c>
shar^
and
a
distribution o,
sp°cial cash
twenty-five cents
(25c)
a
share have
today
been declared by KennecoH Copper Corporation
payable on March 31, 1944, to stoc);hold°rs of
record
at
the
close of
business on
February
28, 1944.

Street, New York 5, N.Y..

Beard

declared
per

120

BOAT

;

Assistant; Secretary,

15,

SMITH,

Trust

N.
"

■

Y.»

':;l.

Treasurer;

;

1944.

11,

Secretary.

is
OFFICE

POWER

The

Market Value Of Stocks And Bonds On New York
Curb

Exchange Advanced In 1943

Total market value of all stocks traded

Exchange at the close of 1943 advanced

the New York Curb

decline

the
of

448,442.

issues showed

$92,112,197 to $2,619,Dec. 31, 1942 there

outstanding amount
241,599 to 37,438,528.

214

were

201

bond

issues, listed and

was

"Listed bonds showed
977

- —

"Market value of listed

increase

1,-

off

stock issues

$353,188,430 to
$1,150,403,068,
and
the average
price rose $1.92 to $5.91, despite
a drop of ten in number of such
issues to 339,. and a decrease of
5,060,353 to 194,398,204 in the out¬
standing amount. Listed preferred
issues .had a similar trend, with
market value up $67,962J97
to
$418,147,948, arid average price
improved
by
$13.90
to
$42.42,
while

their

was

number

at 100 and the
was

off

ten

less

outstanding amount

2,421,291 to 9,856,483.

"In the unlisted

section,

was

market

common

value

that

was

$6.31

value

$371,869,831

low that in 1942.'

"Unlisted

$16,-379,579 be¬

bonds

market

1942-end

price
of $5.29.

The

173

issues

thir

RaWi.

Mex'o,

February

STOCK

DIVIDEND

above

$5.00

the

business

March

1944,

10,

''dosed.Yv.

March

Transfer-

books

will

not

STOCK

the

COMPANY

to stockholders of
February 24,

1944..

"x.V'

closed.

books

Transfer

declared a dividend
Common Stock of

business

10,

NO.

DIVIDEND

Company has

per

record' at the

The Directors of International Harvester Com¬
declared a
quarterly dividend of fifty
(50c)
per
share on the common stock
payable April 15, 1944, to all holders of record
at the close of business on March 20, 1944.-pany

cents

payable

1944,

wi.1

■?

SANFORD

not
".

Trust Officer
J. P. Morgan & Co. Inc.
H.

Rogers has been ap¬
pointed Assistant Trust Officer of

Morgan & Co. Incorporated,

was

made known this week.

COMPANY

SALT

INTERNATIONAL

New York 17, N. Y.
FIFTY CENTS a share has
the capital stock of this Com¬

475 Fifth Avenue,

dividend

SOUTHERN PACIFIC COMPANY

•

been declared on

payable April

1944.

The stock

QUARTERLY DIVIDEND of Fifty Cents
per share on the Common Stock of this

pany,
record

DIVIDEND NO. 105

will

not

the

1944,

to stockholders or

of business on March 15.
transfer books of the Company

closed.

HERVEY

Secretary.

OSBORN,

Company has
been declared payable at the
Treasurer's
Office,
No.
165
Broadway,^ New
York 6, N. Y.. on Monday, March 27, 1944, to
stockholders of record at three o'clock P. M.,

Monday,

February

books
of :this

transfer
ment.

New

28,

1944;

The

stuck

Johns-Manville

will, net be closed for the pay¬
dividend.
/
j, a. SIMPSON, Treasurer.

York, N. Y.. February 17,

if,;

Corporation

1944.

DIVIDEND

The Board of Directors declared a
a,

of 50c

.Tennessee
Corporation

A dividend of 25(£ per

declared, "payable
to

stockholders

New York 6,

N. Y.

February 15, 1944.

dividend

thd Common Stock pay-

record

ROGER HACKNEY, Treasurer

1944.

31,

1944,
close
"

LIQUIDATION NOTICE
The

the

Broadway,

share has been

March

of record, at the

of business March 9,

per

able Ma ch 10. 1944,; to holders of
Febiuary 26, 1944.

Secretary.

WHITE,

P, L. BONNYMAN, Treasurer.

Rogers Named Assistant

HARVESTER

INTERNATIONAL

above

$2.00

100

dividend

on
the Preferred Stock of
stockholders of record at the
February 24,
1944, payab'e

COMMON

•

The
5f

Philadelphia, February 18,1944.

;1944.

NO.

mailed.

and Treamrert

per

Company

17,

declared

has

Company

will be

Checks

1944.

10,

H. 0. Allan, Secretary

Pacific1 Co.

N°w

The

advanced

PREFERRED

an
outstanding
$2,363,629,370, a drop
of $250,984,149 over 1942 when 185
unlisted bonds were traded.*'-

J. P;

Mountain

Rocky

showed

group

amount

Stock

$1,323,830,212 to $6,379,641,917 and
average price rose $2.53 to $15.94.
Number of issues here dipped 11
to 337 but the outstanding amount
was
23.179,750 shares greater at
400.155,680.
Unlisted
preferred
had a market value of $1,944,201,443, up $301,460,767 over the total

Louis,

$.50)

had

$2,240,441,752, which was
$99,630,174 over the
total, ; and an average
of $94.78, reflecting a rise

gain

plus of the Company a divi•dend of Fifty Cents • ($.50)
per share on the Common
Stock, payable March 31, 1944, to stock¬
holders of record at the close of business on

price
$101.91

value of
a

from the

average

better at

The outstanding amount of the 28
issues (29 at the close of 1942)
was

the Company,

$7,517,-

Pirectors have declared
Accumulated Sur¬

The

March
St.

close
a

market

$379,006,690 and
common

THE ELECTRIC STORAGE BATTERY CO.

States

Northern

Companv (Wisconsin), at, a meeting held
February 15, 1944, declared a dividend of
cno and one-quarter per cent (1 %%)
per share
on the Preferred Stock of the Company, payab'e
by check March
1,
1944,
to stockholders
of
record as of the close of business February 19,
1944, for the quarter ending February 29, 1944.
N.' H. BUCKSTAFF, Treasurer.

unlisted, traded.

"Average price per $100 par'*
—
value' of -bonds was up $5.43 to on Dec. 31, 1942, and an average
$95.75,
while ; the - outstanding price of $51.93, which was $9.47
amount
dropped $267,663,728 to ahead of that in 1942. Number of
$2,735,499,201, and total market issues declined 9 to 159 and the
value of

STATES

(WISCONSIN)

directors

Pow-r

$9,892,394,376.
Average price per share for each of the 935 issues
was $15.41, as
against $12.50 in 1941 when 975 stocks were traded
Shares outstanding increased 14,456,507, to 641,848,895.
The Ex¬
change also stated:
,

NORTHERN

COMPANY

board

than $2,000,000,000 to

services ; of

and

p er share,
holders of

capable.

those stocks which under prevail¬
to

of $1.75

quarter

the close of business

March 11, 1944.

The

man, be it
timid man; he

record

investment

without risk is possible. "Out of
this nettle, danger, we pluck this

regular quarterly dividend for'

current

payable April 1, 1944

Montreal, February 14, 1944.

common

can only come through a wealth
of practical illustrations.
The prudent man theory holds

the

BRAMLEY.

Secretary

for

7# SECOND PREFERRED STOCK
The

FREDERICK
'

The brevity of treatment of the

than

-At present the prudent investor
is seeking those industries and

ing

at the close of bustness
March 11, 1944.

record

Canadian funds, March 31, 1944, to Share¬
holders of record at 3 p.m. on March 1,1944

may be stated parenthetically,
does not hesitate in selling stocks,

qven at a

regular quarterly dividend for
the.current quarter of $1.75 per share,
payable April 1, 1944 to holders of

a meeting ot the Board ol
Directors
today a dividend ot two per cent, (fifty
cents per share) on the Ordinary Capital
Stock in respect of. and ouv ol earnings for,
the year 1943, was declared payable, in

•

ent-day investment pattern of the

ment it

The
At

held

MAKERS OF PHILLIES

managing many funds with
widely differing needs, so that no

7% CUMULATIVE SERIES PRIOR

RAILWAY COMPANY

the

of business

1944Y;;''?

Dividend Notice

men, is notoriously faulty at criti¬
cal points in the economic cycle.
In the case of trust departments

application of such plans for

the

March 11,

CANADIAN PACIFIC

current

record

Philadelphia, Pa.

treasurer

PREFERRED STOCK

The

the

watch

for

Avenue, New York 16, N. Y.

Chairman, Finance Committee

are

common

of these plans

none

ured not solely on its own record

180 Madison

stockholders

averages.

but

;

CORPORATION OF AMERICA

the out¬

payable

has been in practical operation for

stock

•

the

seventy-

stock,

1944,

Checkswill be mailed.

levels

February 28, 1944.

specific industries. Not only does
this insure attention to diversifi-

dividend of
per

common

record

February 29,1944.

Chrysler Corporation

($.75)

five cents

declared payable March

15, 1944,

(37*/^)

the Common

this

STOCK

COMMON

have declared

Stock

timing pur% better trust .asset in. terms of botb, Chases, and also sales, ,of common
income and principal results than stocks, much has been said and
one
enjoying broader acceptance written of late about mechanical
formulas for reducing or increas¬
by ,investors.
-tv /■.
■ s
;
A sound first approach to com- ing the proportion of common
mon
stocks is through .study of stocks at certain predetermined
,

DIVIDEND

A dividend of- thirty-seven

PRODUCTS

MAKING WAR

NOW

final word

DE SOTO

PLYMOUTH

larger
and par¬

marked
prospects
for
the
prudent
investor
would both expect and be obliged
to pay a higher ratio to earnings
and

DIVIDEND NOTICES

CHRYSU

ticularly
growth,

NOTICES

1 D.ODOE

industry

broader base,

813

J. B. McGEE
Treasurer.

All

First

National

creditors

hereby notified

Bank

Nebraska

State of

the

to
ED,

located

Butte

closing its affairs.

association

are

therefore

present claims for payment.
S.

Dated December 2,

DONAHUE,

1943.

President.

Tomorrow's Markets
Walter

NASD 5% Rule Threal To Posl-War

Whyte

apparently many of. the 50 transactions listed by each member
were

bona

not

fide

customer

oyerrepresented in the running of
the " affairs > of. the
association*
diversification of representa-;

Such

Governors„ of tion would also/ facilitate the
NASD, in a letter of Nov. 9, greater dissemination of informa¬
1943, addressed themselves to all tion among members prior to vot¬
on
policies to be adopted;
members of the District Business ing
Conduct
Committees:
"Isolated The slick job that was done in

I transactions.

(Continued from page 787)

795)

fighting spirit of
Japs, their willingness to
for the Emperor, their

strong the
die

1944

The

the

(Continued from page
the

Employment

And Small Business

Savs

far-flung

entrenchment

their economic situa
tion, the stuff that makes the
areas,

round,; is
the Nazi's. I

of war go

wheels

far weaker than

may
the Germans.

falling in
one month to one year, it may
take all of five years to lick
'em.

lack

tween

subjectivity and objectiv¬

ity. Point two, I am not convinced
that a selfish action of a business

is ipso facto bad for the
dangerous lack

diverse business groups a

But the answers

appreciation

complex that no one
even one

are

week's,

month's, tape ac¬

can give the clue.
The
thoughts
expressed /above
have
long-term
meanings
which cannot be evaluated

tion

consider¬
ably more of the post-war
policies, social as well as eco¬
without

knowing

nomic.
/-// ///■

of this

Outside

all these possi¬
have market implica¬

Of course,

;

unity, there exists among the

The

respect is appalling.

short-term indication,

last week's market action re¬

"indications

are

that approximate¬

ly 9,000,000 more people will want
jobs after the war than were em¬
ployed
in the best peacetime
year." This means venture capital
must

available

make

room

tive workers. But the NASD

profit

limitation rule will drive out the
small

dealer

essential

the

smaller underwriting

mains inconclusive.

Yet, in the light of what we the small
know,
it
is
these
bolder impossible
stocks that show the direction
the groups are

pointing to.

same

can

said

the

first

place? > There is a
great educational job to berdone;
perhaps a revival of the American
institution of the Chautauqua is
advisable.
Regardless of compe¬
tition, there must be a fundamen¬
tal agreement on the question of
the general social structure with¬
.

lack of
in which all business is to func¬
the proper role
each business unit plays within tion.
There is a third point in this
the national economy.
For exam¬
overall picture, namely .the prob¬
ple, Mr. Charles R. Hook, former
President of the NAM, in a recent lem of public relations.; This is
distinct from an educa¬
address before the San Francisco quite
Chamber of Commerce stated that tional campaign to promote unity

houses. Big
dealers sell blue chips, they , do
not engage in the marketing of
have made new
industrials continue
to act semi-speculative issues. I know of
a
small underwriting house here
like bashful little girls. Here
in
New York
which
arranged
and there a stock or so feeling sometime ago for an issue with a
smaller manufacturing establish¬
bolder than the rest steps out,
ment to the amount of $300,000.
but seldom is this steppingSixty-seven dealers were involved
out process followed through.
in this particular case.
Kill off

The rails
highs but the

The

whole.

for at least some of these prospec¬
*

upon

this

transactions, where the spread or
mark-up is in excess of 5%, may
warrant only informal inquiry or
a precautionary letter, but where
practice
is
established, formal
complaint procedure is the rec¬
ommended course." This raises a
number of

(1)
mean

interesting points.

What
that

tions reported were

•

country.'

tions.

econ¬

repercussion

SEC, NLRB and other agencies.
Second, such a body could act as Take the bankers as illustration
par
excellence/ Bankers know
an advisory and fact-finding body
to Congress which certainly is not how to make money; they know
how to render service to the com¬
now so constituted as to give it¬
But most of them have
self expert opinion on a thousand munity.
and one questions in regard to the absolutely no idea of the. rela¬
national economy.
If it is argued tionship of one bank and its op¬
that such an organization would eration to the banking system as

group

bilities

the national

its

the individual business unit.

putting over the profit

limitation

illustration of
parliamentary procedure in the
absence of adequate representa-i
tion of all interests concerned. / rule

merely an

intended to pro-:
present;
set-up deprives investors of pro¬
(6)

Congress

the investor, but the

tect

tical elimination of an open mar-*

of Germany

stead

upon

and

omy

tection/ /The 5%'
grossprofit
limitation rule will spell the prac4

belief, the
capitulate before

Japs

conduct

effected at a
be guided solely by selfish mo¬
mark-up of- not over 5% if the
tives, I would say: Point one, we of business as a whole: How : t^
And that, in¬ can leave it to the people's rep¬ can one expect a unity oof. purpose questionnaires were not classified
resentatives to discriminate be¬ if there is no conception of unity according to the size of firms re¬

con¬

to popular

trary

One, unity of action against
arbitrary policies as illustrated by
the
recent
behavior
of NASD,
ways.

can the- conclusion
71% of the transac¬

that

submit,

therefore

Thursday, February 24,

THE COMMERCIAL & FINANCIAL CHRONICLE

814

obtain

dealers

and

will

for smaller companies
funds.
No funds, no

Where is the support that
smaller business should give in
this fight for the preservation of

jobs.

Public relation

business.

within

tions

sorry

are

small
few

business

units!

outstanding

Granted

exceptions,

the

of American public

rank and file

relations

rate,

number of small dealers
to fold up.

(2) The rule is a tax on gross
income.
Our Federal income tax

placed very wisely on
net income.
To tax gross income
would be highly discriminatory
since
a
$10,000
gross
income
might mean $5,000 net income in
one case; $8,000 in another.
No
consideration was given to costs.
has

men

splendid col¬

businesses have

what

tion

sound

concep¬

and

complete

public relations program implies.
Once business decides to let the
public in on their doings
mind

the

(never

skeletons in the closet;

everybody has them!), perhaps it
will obtain better support in its
fight to maintain private enter¬
prise, Unity of purpose.
More
education among

business groups.

Adequate public relations.
There is no intention here to
ascribe sinister motives to this or

future

any

tacks

are

been

service fees, wages,
a large extent fixed
regardless of the volume of busi¬
ness.

administration.

At¬

made in a democracy at

unfair

businesses

the

same

hold two
mark-up

if volume differs.

lection of uninformed individuals.
Most

The results, at any
would indicate that a large
will have

smaller profit.

the general public.
mess public rela¬ Rents, wire
in most of our big and etc., are to

regard to

What

large WallStreet
a volume business and
those; .not having a retail sales
force can certainly operate on a

porting?
firm doing

(3) There seems to be such ut¬
ter confusion within our govern¬
ment.
as

The SEC under the NASD

code

authority

remember

(does

anyone

Charles Evans Hughes

the

smaller: securities

for

ket

over-the-counter

issues.

dealer will risk ownership

of the

securities of small, local corpora¬
if

tions

his

gross

profits are so

severely restricted. Many holders
of such securities will find that
their
securities are difficult to
dispose of, and that their holdings
have a most uncertain marketa¬

bility. The effects on banks mak¬
ing loans on such ■ collateral is
obvious.
;

(7) The

issues is

distribution

of small

difficult thing because
limited

their

marketability;

People want to be sure they can;
shift* commitments
should they
decide to do so.
If marketability
is still further reduced

elimi-»
to

it will be impossible
market small issues.

nated,

(8) Congress and the Adminis¬
tration profess to be extremely
solicitous of the welfare of small
business:
Ori the other, hand, the
NASD .5%
and

one

profit limitation rule

like the

bid and askedt

disclosure rule that the SEC pro-/
some time ago, and con-;
tinues to talk about, would inten¬

posed

"But would tionally, or unintentionally, elemi-;
contended that nate it from the scene. The coun¬
Congress could delegate its legis¬ try needs jobs, some of which
business no doubt could'
lative authority to trade or in¬ small
dustrial associations or groups so provide if capital is available.
If
not, a repetition of mergers may
as to empower them to enact the
laws they deem to be wise and occur after this war just as they
Mergers
beneficent for the rehabilitation did after World War I.
and expansion of their trade and not for monopoly purposes or for
the
profits of promoters, but
industries?") controls the profits
of an American competitive busi¬ mergers effected to obtain ad-*
ditional capital.
ness/
On the other hand, no at¬
in the Schechter case:
it

seriously

anybody upon tempt has as yet been made to
(9) The SEC permits 15% profit
anybody. Unless there is limit the profits of other busi¬ on underwritings.
Suppose one!
some
general
understanding nesses in a similar fashion. Should grants its adequacy, the question
So last week's advice con¬ the small dealer?
There is a direct correlation be¬ among all business groups to come this come, would it not be dis¬ still remains: How can a successful
tinues: hold on to stocks rec¬
to the aid of a particular business
tween
the
mentioned
lack
of
criminatory to place a grocery underwriting job be carried out
ommended
here
and
buy unity of purpose and the lack of when fundamental policies are at¬ store in a little hamlet, a super¬ unless markets are maintained for
those mentioned when avail¬ a proper understanding of the ef¬ tacked, such attacks tend to be market, and Montgomery Ward in these securities?
If the small
extremely costly in a complex and the same
fect
of
the
individual
business
group? Purchasing se¬ dealer passes; out of the picture/
able at specific prices.
economically interdependent soci¬ curities is a. case of quantity and the smaller underwriting houses
ety.
The public
quality being known to the buyer. are washed up, too.
All that has been said is in re¬
American
Steel Founders stopped at 24. Partial profits
If he wants to purchase a particu¬ and, I dare say, Congress are quite
across
27 would be a good gard to the broader aspects of the
at 25, now about 26, should be
lar common stock he knows its unaware of the social contribu¬
idea.
problem under discussion, viz., the
quality, which is more than the tions of the small fellows. Cases
*
$
#
NASD profit limitation rule. Why
have come to my attention where
consumer does when he purchases
should other business come to the
the small dealers participated in
Switch
from
Armstrong aid of the small dealers in securi¬ furniture, clothing, or antiques.
the marketing of large blocks of
Why this double standard?
LAMBORN & CO.
Cork, bought at 38 and gotten ties who would be adversely af¬
securities from estates which if
V (4) The anti-trust1 division of
I have al¬
out at about the same price, fected by this rule?
the Department of Justice has re¬ thrown on a thin market would
99 WALL STREET
have caused considerable losses to
into American Car & Foundry ready referred to the need for
indicated that securities
venture capital to increase em¬ cently
NEW YORK 5, N. Y.
investors.
How much free advice
between 33 and 34 was not
underwriting is just like any
ployment opportunities. The need
is given by the dealer to members
other business,* hence its com¬
for new capital entailing a high
possible last week.
Car &
of his community?
How many
risk is much more important than petitive nature must be preserved. little
speculative ventures, the
Foundry's low was 35. Sug¬ the
Underwriters' selling agreements
average person realizes. Much
SUGAR
ventures that have added so much
are violations of the Sherman Act.
gest repetition.
has been said about the danger of
to our comfort, were successfully
The NASD comes along, would
rapidly rising prices after this
concluded thanks to the existence
Exports—Imports—Future*
drive out the small dealers, and
war.
I am almost inclined to talk
of the small dealer?
An investi¬
•V
; V.
The same thing was true of
create a monopoly structure de¬
about a deflationary rather than
other new recommendations.
void
of its
former
competitive gation into the history of such a
an
inflationary problem.
Does
commonplace thing as the sani¬
1
/'
DIgby 4-2^27
Stocks did not get low enough business as a whole realize the nature.
r
tary milk cap would prove very
(5) In a way the NASD reminds
to buy, and this is no time to stock pile problem that will ex¬
enlightening in this respect.
Moreover,
when Germany one of the New York Stock Ex¬
chase them.
Chances are, be¬ ist?
; (10)
There is always the possi¬
collapses payments to a vast num¬ change prior to its reorganization.
fore next
column
appears, ber of industrial workers will Perhaps what is needed is a fight bility that a black market will,
develop in certain types of securi¬
two
to
Established 1850
four-point set-back disappear; there will certainly be for representation of the smaller ties as a result of excessive regu¬
will occur, giving you the shifts from high-wage occupa¬ firms of the policy committee. lation.
Certainly trading will be
tions to lower wages in the pro¬ The commission brokers had to
chance to buy at
suggested duction of peacetime goods. By holler until they were given an done; it is inherent in the Amer¬
ican
character.'
If no regular
levels.
voice
in
policy de¬
Members
how much will this cut national adequate
dealer markets exist because of
,'v
*
*
Except here, the cards
New
York
Stock
income payments?
Exchange
A feeling of cisions.
the 5% profit limitation or bid and
New
York
Curb
Exchange //
insecurity will certainly not con¬ seem to be stacked against the
J Incidentally, keep an eye tribute to the quick spending of small fellows, while in the case asked disclosure rules, someone
New
York
Cotton
Exchange
will do the trading—without much
[ On
utilities, particularly the wartime savings.
Commodity
Exchange,
Inez
Contemplated of the Stock Exchange the SEC
protection for the small investor. '
Chicago
Board
of
Trade
American
Foreign
Power from such an angle, the mainte¬ was pressing for recognition of How can a securities dealer, of all
New Orleans Cotton Exchange
Certainly
nance
and improvement of the the smaller interests.
group.
And other Exchanges
people, be expected to do busi¬
large
underwriting houses
American capital market becomes the
v.,
/,//.-/ *
*
* ://■,///..
ness if he must reveal the whole¬
and
Stock
Exchange firms are
of the utmost importance.
sale price prior to the acceptance
More, next Thursday.
The questionnaires sent to the
of an order?
He labors under a
N. Y. Cotton Exchange Bldg,
*And they are right in prin¬
V
NASD
members
admittedly
—Walter Whyte
great risk.
There are too many
NEW YORK 4, N. Y.
[The views expressed in this
ciple, although there is adequate
showed that in 29% of the trans¬
variables
involved.
He
deals
article do not necessarily at any
justification for the contention of
with capital goods whose values
actions cited, mark-ups of more
CHICAGO
DETROIT
PITTSBURGH
time coincide with those-, of the
underwriters that in the initial
depend upon future income. • ■"■"/
GENEVA. SWITZERLAND
This stages
Chronicle.
of
distribution
selling
They are presented as than 5% were necessary.
The
aforementioned problems
those of the author only.]
quite aside from the fact that agreements should be permissible.
>;«

sis

one

time by most

most

•

H. Hentz & Co.

Volume- 159 ;/ Number

;■ '

THE COMMERCIAL & FINANCIAL CHRONICLE

4258

'.'

Abbott

Laboratories

tration

has

filed

regis¬

the

94,439common

shares-, without par value.
Road,

North Chicago, 111.
Business—Engaged in the manufacture,
distribution and sale of pharmaceutical,
medicinal, chemical, biological and vitamin
products.
writers

and

common

each of

)

the

them,

■

names

of the under¬

percentages

of the unsub¬

are

purchased by

follows:

G. Becker

being

are

eight

common

business

000

be¬
1944, will be transferable
March 1, 1944.

stock.

Such

offer¬

underwriters,

Names

for general

corporate purposes pending specific alloca¬
tion
of such funds.
Some of the funds
may

be used to cairry additional receivables

and

inventories,

and

tjo

increase

Some

balances.

the funds may be used at some future
to

time

for expansion of the company's
manufacturing facilities.
One of the pur¬
provide

this financing is to provide the
with funds with which to meet
!post-war opportunities which may present
themselves for the expansion of the com¬
pany's business.
' "
4
Registration Statement No. 2-5296. Form
£-1. <1-31-441.
•
of

poses

statement
effective
EWT on Feb. 16, 1944:

p.m.

5:30

'V,''.V" .-*V;SV "0" J;

Sv'**'/

Illinois

Electric

filed

registration

has

400,000

value

par

$15

stock is already 4ssued
and does not represent

The

share.

per

financing.

iiiew

for

statement
stock,

common

<and' outstanding
■

Co.

Gas

Main

North

Address—303

ford, 111.

Street;

Rock-

Business—Operating public utility.
Underwriting—To be applied by amend¬
ment.
.
:'
'
1
Offering—Consolidated Electric & Gas

]

the

Co.

the

beneficial

Consolidated

;nois.

owner

:!by

Public

Central

tered

holding

tered

is,

Utility

all

the

of Central 1111turn, controlled

Corp.,

regis¬

The stock regis¬
disposed of by Consolidated

is being

company.

with
the
provisions
of
^Section 11
fbi# (1) of the Public Utility
'Holding Company Act.
No portion of the
proceeds of the sale of the common stock
registered will be received .by Central Illi¬
nois.
Consolidated E'ectric has petitioned
Ithe Commission for an exemption from
the
competitive bidding requirements of
the Commission's Rule U-50 in order thai:
dt can sell the stock at negotiated sale to
Central Republic Co., an investment firm
of Chicago, which firm subsequently would
'make a public offering.
In

compliance

the

Stuart

voting
of

Allen &
Bankamerica

with

Associated

share.

Bear,. Stearns & Co.,

are

share by

17,

1944

$19,125

Allen & po. and Associates.

per

■

•

amendment.

„

the

sale

March

1966,

$406,805,

require

the

Co.

105%

Co.,

Kidder,

Inc.,

A-2,

Peabody

&
i

—

SouthBoston

624

',Tulsa, Okla.
f
Business—Operating

Avenue,

;■

public

beneficial

en-

and

dis-

Inc.,

—-

—:

■";11

■

;11—~

the threat to the
'continued existence of a private
'are indicative of

when arbitrary, regula¬
tion sets in. Part of the predica¬
ment is due to the lack of con(economy

ness

the part of busir

whole.

Probably the

j strangest aspect of all is to watch

required,

may

proceeds

bidder

stock.

and

obtained

bank

new

loan

redemption purposes

from

will

follows:

first

and

$3,678,u00

mortgage

bonds,

lace

amount

C'3%

Series

due

April 1, 1956, at 104y4) total $21,076,815;
payment of. $3,500,000 bank loan; redemp¬
tion

58,000

$5.50

prior preferred stock at $110

convertible

per

$6,380,000 and redemption of 91,055 shares
of $3 preferred stock, $50 par, at $55 per

Government

the

engage

actions denied to
'business.
Underwriters
very

in the
private

cannot

$5.50

protect the market of their securi¬
ties by protective purchases.
Yet
the annual report of the Federal
Reserve
authorities, ;' under the
direction of the Treasury, proudly
(refers to

the open market opera¬

tions made in the interest of main¬

taining "a sound capital market."
Unity of
purpose,
education,
public relations could do much to
eliminate arbitrary rulings and in¬
fringements upon private busi¬
ness.

America has not been made

whining

made by

individuals;

was

fighters who believed in

something and acted accordingly.

or $5,008,025,
grand total $35,964,The amounts required for such pur¬
will be reduced to the extent the

840,
poses

convertible

verted

into

demption

prior
If

additional sums,

preferred

stock

common

date.

$5.50 convertible

eral

required

funds

and

before

conversions

con¬

the

re¬

the

prior preferred are made
other than those provided

by the new securities and
will

from
will

new

bank

loan,

the company's
be

available

gen¬

for

the

purpose.

Registration Statement No. 2-5302. Form
S-l.

agree¬
ex¬

reg¬

(2-7-44).

MANUFACTURING CO.

Ware Shoals

Manufacturing Co. has reg¬
istered
10,000
shares of 5%
cumulative
preferred stock, par $100 per share.
Address—Ware Shoals, South Carolina.
Business
Manufacturing, finishing and
fabricating of cotton goods.
Underwriting — Names
of
underwriters
—

and

number

(3)

re¬

larger portion of its business with¬

We
whose

oil,

OFFERING

below

present

days

list

offering
mined

dates

are

have

leverage
Bull

invest¬

principal

underwriter.

American

Realty

the

extension

notes

first

CO.

mortgage

Housam

Avenue,

first

regis¬

offering

mortgage serial

Realty Co., secured by a
of
trust
on
the
5707
McPherson
in the aggregate

deed

principal amount of $240,750.
Address—5707

Louis, Mo. t'

Street,

Boston,

trust;

which

there

unpaid

balance

;

amount of
all the
notes
outstanding by
10%,
leaving,
after
such
reduction
oi
principal, an aggregate first mortgage in¬

debtedness of $240,750.

Form

(12-30-43.)
filed

Amendment

Price

offered

Jan.

14,

1944, to defer

principal

Date

purchased by

Products,

Feb.

Distribut¬

filed

$300,000

series

5%
dut

1943.

1951, and 11,400 prior preferred
for the
purposes
of such con¬

1,
shares,
version.

>■

Traction

Angeles, Cal.
Business—Engaged
essing

•

Los

Avenue,

business

tea,

and

(2-16-44).

Angeles,
are
named
underwriters, each
having agreed to purchase $150,000 of the
debentures at 921/a%, or a total amount oi

investment.

LIGHTING

POWER

CO.

Offering—Price to pubic.

& Power Co. has filed
registration statement for 112,264 shares
$4 preferred

inal

stock and 47,513 shares of
stock, both stocks; without nom¬
par value.

Proceeds—To

—

Fannin

900

Street,

Houston,

New

operating

elec¬

&
Co.,
Co., and Blyth & Co., Inc.

York,

are

Barney

filed in San Francisco.

underwriters

60,-

shares of the $4 preferred stock.
The
balance of the preferred and the common
stock

which

holders

—

holder

preferred
to

being offered in exchange
presently outstanding pre¬

The
of

company
will offer
7%
preferred and
the following options

its

stocks

to
$6
as

part or all of such holdings: To
exchange such preferred stock for $4 pre¬
ferred on the basis of 1 1/10 shares of $4
any

preferred for

each share of Jl% preferred
or
$6
preferred stock—(b)
to exchange
such preferred stock for $4 preferred stock
and

stock

common

half

ferred.

the

preferred

stock

common

for

each

basis

and
share

one

working

of such

pre¬

capital.

Registration Statement No. 2-5307. Form

(2-18-44).

American
Penna.,
for

has

100,000

//v

value

per

Co.
of
Reading,
registration statement
capital stock, par

Casualty
filed

share.

Address—607

Washington

St.,

Reading,

Pa.

Business—Multiple line
casualty
com¬
Conducts a general casualty insur¬

pany.
ance

business.

Underwriting—None

1944,

to defer

reported.

liquidation

cash

dis¬

general
capital,

operating

$60,000;

reserve,

re¬

acquisitions, etc., $45,unit for securities to be

per

for

cash

$1.60,

with

under¬

writing

discounts and commissions,
Registration Statement No. 2-5268.

S-l.

(12-7-43.)

„

Form

Statement originally filed

San Francisco.
Amendment

'<■

filed

Feb.

19,

1944,

defer

EASTERN

COOPERATIVE

WHOLESALE,

Y>&.

;

Eastern

filed

Cooperative Wholesale, Inc., has

registration

registered

statement

debenture

for

bonds

$100,000

authorized

issue of 1943.
Address—44
York

West

143rd

Street,

New

City.

Business—Wholesale

dealer

groceries"

and
allied
products,
including,
among
related activities,
warehousing and
packaging.
Underwriting—None.
Offering—The price of the bonds is $25
for
each
$25
principal amount thereof.
The securities are being sold by the co¬
operative directly to its stockholders and

other

friends interested
ment

without

underwriter,
No

the cooperative move¬

the

interposition

dealer,

commission

broker

house

the
and

July,

being paid to
with such sale.
;

1943,

title

and

chase

over

New

period

York,
the

used

new

the

form
seven

S-l.

;

ware¬

purchase

taking

payable

any

anyone

purchased

$50,000 cash

was

mortgage

the

building

$12,000

money

ments

are

purchase
office

price of which

salesman.

conjunction

finance

install¬

pur¬

years.

Form

(12-31-43.)

Registration

statement
Feb_ 19,--1944,

on'

EWT
EWT

Jan.

FOOD

19,

FAIR

Food

3Va%

effective 5
as
of 5:30

1944..;

Stores,

statement

p.m.
p.m.

INC.

STORES,

Fair

tration

filed

Inc.,

for

regis¬

15-year

$3,500,000

sinking fund debentures, due Feb. 1,
L.

Address—2223
East
Allegheny Avenue,
Philadelphia, Pa.
,
Business—Operates
supermarkets
en¬
gaged in the retail sale of groceries, meats,
meat products, vegetables, etc.
Underwriting—Eastman,
Dillon & Co.,
New
York, head the underwriting group,
with names of others to be supplied by

INC.

;

Offering—Price to the public to be sup¬
amendment.

plied by

Proceeds

—

the

bank

standing

notes

payment
of
of $3,150,000,

out-

•

with

value, and 108,913 shares of common
stock, par $1 per share.
The latter in¬
cludes 88,913 shares of common reserved

prepayment premium and accrued interest,

the conversion of the
5»/a%
cumulative
convertible
preferred
stock registered,
at the present rate of
conversion, which may vary from time to
time in the event of certain contingencies.
The shares are issued and outstanding and
the offering does not represent new financ¬
ing by the company.
• >,
V .l-'
Address—721 Fifth Avenue,
New York

S-l.

par

issuance

upon

City.
Business—Owns and operates

outstanding

large

specialty

one

stores

of the
in the

and

Underwriting—Allen

Co.,

New

York

named principal underwriter for
both the preferred and common stock.
Offering—The offering price to the pub¬
lic
of both
the preferred
and common
stock will be supplied by amendment.
The
prospectus
offers the 35,565
shares of
5Mj% preferred and 20,000 shares of com¬
mon
stock.
The shares are presently is¬
sued and outstanding and are being pur¬
chased
by the underwriters
from Atlas
is

City,

working capital.

increase

Form

Registration Statement No. 2-5280.
(12-24-43.)

effective

■;

filed

Am^ndm^rt

Jan.

28,

1944, to defer
'

date.

GROUP SECURITIES,

INC.

Group Securities, Inc., has

registered 5,-

($50,000,000 value for com¬
of fee), of a par value of one
cent per share.
Address—No.
1 Exchange Place, Jersey
000,000 shares

putation

City,

investment company.

Business—Mutual

United States,

The

added

TELLER,

15,

Inc.; has filed a registra¬
tion statement for 35,565 shares of 5J/2%
cumulative convertible preferred stock, $50

one-

share of

offering price of the $4 pre¬
ferred stock to the public will be supplied
by amendment..
1
Proceeds—Net proceeds from the sale of
50,000 shares of $4 preferred will be added
to working capital
(in part to replenish
the company's treasury for cash /used for
construction), and no part of such pro¬
ceeds will be used for redemption of any
of
the
company's
7%
or
$6 preferred
stock,.
Net proceeds from sale of remain¬
ing 10,000 shares of $4, preferred sold to
the underwriters will be set aside by the
company in the first instance for use in
the redemption or retirement of its 7%
and
$6
preferred stocks and in making
necessary cash adjustments with exchang¬
ing
stockholders.
Any
balance will be

A-2.

Feb.

Bonwit Teller*

for

stock,; is not being underwritten.

Offering
each

filed

effective date.
BONWIT

the
/

property

amendment.

Smith,

—

000

ferred

and

working capital.
Registration Statement No. 2-5273.
Form
(12-20-43.)
Statement
originally
Amendment

Business—Principally
tric utility company.

loans

Address

will

proceeds

1959.

100.

bank

retire

S-l.

Texas.

S277.500.

Houston Lighting
a

1943.

from

Registration Statement No. 2-5283.

'
proc¬

marketing
at
wholesale
oi
extracts,
prepared
mustard

and

coffee,

offering

proposed

At market.

for

statement

Address—800-812

underwriter.

has

Inc.,

debentures,

convertible

15,

Proceeds—Proceeds

PRODUCTS, INC.

registration

July

notes.

stock¬

proceeds

$40,000;

general

for

000.

unsecured

is limited

cash

stock

preferred

effective date.

Business—Apartment
building.
Amer¬
Realty Co. was incorporated July 21,
to acquire and own the equity in
the
Ranelagh Apartments subject to the
first mortgage deed of trust, securing the
outstanding and
unpaid mortgage serial
notes of the par value of $267,000 which,
by the plan of reorganization, are to be
reduced by 10% to $240,750 of par value,
and on outstanding second deed of trust
on

community

$150,000.

follows:

serve

St.

Avenue,

1943,

Massachusetts

-—

named

record
be

$5,000;

McPherson
•

ican

TRUST

Congress

its

subscribed,
will

indebtedness,

Apartments,
St. Louis, Mo.,

Ben-Hur

filed

fully
issue

Co. has filed
relating to the

statement

tration

for

BEN-HUR

has

holders of

holders

deter¬

us.

Registration Statement No. 2-5282.

Trust

outstanding 6%

offering for cash

Proceeds—Cash
REALTY

share.

per

lease.

bursed

AMERICAN

S-l.

INVESTORS

mineral

The

Underwriting—None.
Offering—Purpose of present offering to
the noteholders is to reduce the principal

Management

and

filed

wbose

been

not

unknown

properties held under

gas

poration's

Issue*

were

but

ago,

par

Underwriting—None named.
Offering—The company plans to reor¬
ganize its capital structure and put it
virtually,
If not wholly, on a
common
stock basis.
The exchange features of the
offering are limited to holders of the cor¬

registration statements

twenty

stock,

common

certain

resorting to reinsurance.
Registration Statement No. 2-5308. Form
S-l. (2-18-44).

Address—912
Syndicate Building,
1440
Broadway, Oakland, Cal.
Business—Organized to drill and develop

$40,500.

AMERICAN CASUALTY CO. OF READING,

SUNDAY, FEB. 27
SHOALS

and

company,

class

the

acquire

York,

New

PENNA.

WARE

insurance

business

territories

stock,

common

Place,

interest.

—

HOUSTON

will

face amount of first mortgage
Series B, 3%%, due Aug. 1, 1955,

at/■: 104 Vz

transact

and

organize

WEDNESDAY, MARCH 8

Offer¬

$18,500,000
bonds,

trust

agreement

Investors

Proceeds—For

the bonds and divi¬

preferred

prices of both bonds and stock will
supplied by post-effective amendment.
proceeds,
together
with
such additional amounts up to $6,500,000

applied to

'■.» certed action

successful

the

Proceeds—Net

the

voting

Registration Statement No. 2-5306. Form

common

rate on

(2)

spices.
j
Underwriting—Pacific Company of Cali¬
fornia,
and Wyeth & Co.,
both of Los

A-l.

ing

Streets,

Offering

utility

igaged in producing, purchasing
tributlng natural gas.
-'

The

interest
rate

fire

states

States;

effective date.

April 1, 1944.

which the registra*

Commission.

stock

admission

the

Ranelagh

Business—Investment

Underwriting—Names to be supplied by
post-effective amendment.
Offering—The bonds and new preferred
stock are to be offered, for sale subject to
the competitive bidding requirements of the

dend

Jefferson

investment.

Lazard Freres &

Address

named

Address—19

all

Underwriting

name

southeast

(2-12-44).

Mass.

ling.
SATURDAY, FEB. 26

all

registration statement for 866,368 shares

as per

Oklahoma Natural; Gas Co. has regis¬
tered ; $18,000,000
first mortgage ; bonds
series due April 1, 1961, and 180,000 shares
!of preferred stock, Series A, cumulative,
-.par value $50 per share. ,,,""•' :

all

tain

value

the

Massachusetts
a

public authorities which normally become

2,030
par

become effective, that

course

stockholders.

out

and

MONDAY, MARCH 6

are as of 4:30
rule 930 (b).
Offerings will rarely be made before the day follow*

)

300,000

Form

Peabody

Kidder,

for

ments

United

Registration Statement No. 2-5305. Form

bid of 105.159.
16

—

Offering—At market.

seven

OKLAHOMA NATURAL GAS CO.

for

trust

present

Proceeds—For

days.
These dates, unless otherwise specified,

The

Underwriting—W.

lis twenty days after filing (unless accelerated at the dis*
cretion of the SEC), except in the case of the securities of

PM. Eastern War Time

Luers

THURSDAY, MARCH 2

re¬

and int.

located

Underwriting

grouped according to the dates

I effective in

stock

Business—Management

Registration statement effective 5:30 p.m.
3, 1944.

Feb.

1944.
to

period of 30 days after
Registration Statement No. 2-5245. Form
(10-29-43).
events, until at least A-2.
April 20, 1944.
;■ ;v; ^V:v ;A-^
Amendment to defer effective date filed
Proceeds
Proceeds
to
company
from Feb. 19, 1944.
proposed offering is $1,100,000.
The pur¬
BUTTES OILFIELDS, INC.
pose of the financing is to increase the
capital and surplus of the company to
Buttes Oilfields, Inc., has filed a regis¬
enable it to, (1) meet the capital require¬
tration
statement
for
306,305 shares of

COMPANY

N.'Y.

EWT on Feb.

certificates-

MASSACHUSETTS

Awarded

10,

Registration Statement No. 2-5289.

Offered

offered

are

UNDETERMINED

ment company.

8-1.,: (1-15-44.)

Bonds

for

March

warrants

(2-11-44);

interest and expenses.

Co., Feb. 14

Carl

value $1 per share.
Address—40 Exchange

aggregating $4,656,522 exclusive

demptions
of accrued

purchase

but,

issuance,

voting
trustees,
registration statement for

will

record

Form

REPUBLIC INVESTORS FUND, INC.
Republic Investors Fund, Inc., has

103%%,
two

stock

exercisable

Rosenthal,

par

bonds; 4 %, series C, due
Aug. 1, 1964, at 106% %, which will re¬
quire
$4,249,717,
and of $394,000
face
amount
of
first mortgage
bonds, 31/2%,
due

BUILDING

Robinson,

Purpose—To- extend

istered

from

mortgage

will

2-5303.

The

share for each share

new

new'stock

;

building

F-l.

together with other funds of the
company, will be
applied to the redemp¬
tion
of
$3,981,000
principal
amount of

Proceeds—Proceeds

which

Registration Statement No. 2-5304. Form

the Commission's Rule U-50.

series

sumption'that, all of the present holders of
participating certificates will agree to the
•extension of the present trust agreement.

bonds,

first

9,725

pired Sept: 30, 1943. The trust agreement,
as
extended,
will expire Sept. 30,
1953.
The certificates registered is upon the as¬

the public will be
supplied
by
post-effective
amendment^
Company proposes to ask for bids under
Che
competitive bidding requirements of
Offering—Price

the

presently outstanding.

SQUARE

trust

ment.

;

the

corner
of
Fifth; and
Springfield, 111.:, - *
.Underwriting,—None.

Business—Public utility operating: ex¬
clusively in Ohio.
,
'
Underwriting—To ■ be supplied by posteffective

■

common

of lice

Ohio

The

stockholders

Light & Power: Ccl had
filed a registration statement for $4,300,000
first
mortgage
bonds,
series
A, \3Vz%,
dated Feb. 1, 1944, due Feb. 1, 1974.
Address—120 North Main Street,
Findlajr, O.

common.

company

Square; Building Co,
Address—Statutory
Office,
Room
840,
o^ut i Mi- higan Ave., Chicago, 111.
Business—Lincoln
Square
Building Co.
owns
and operates the theatre, store and

CENTRAL OHIO LIGHT & POWER CO.

Centrdl

pre¬

111'

Richter Co.

Feb.

requested
the

such

Corporation and its subsidiary Rotary Elec¬
tric Steel Co.
Atlas Corporation, directly *
and
indirectly, has been the controlling
stockholder of the company since its or¬
ganization. ;■
•'
Proceeds—Proceeds will go to the selling

Lincoln

Hutton & Pomcroy, Inc.,
PeltasQiv; Tenenbaum,
Inc. and Scherch,

Schoellkopf,

Offered

been

enable

Statement No.

filed

have

on Feb. 4, 1944.'
:-Awarded :Feb. 14, 1944 to Allen & Co, at

Co.,

waived

W.'

Maurice

EWT

Co.

not

one

one-half of

held.

DATES
LINCOLN

Following is a list of issues whose registration state*
hied less than twenty days ago. These issues

certain foreign

Inc.,

WEDNESDAY, MARCH 1

plan provid¬

ing, for; sale • of the stock' at competitive
bidding. ""
""
.
Registration: statement, effective;' 4 p;m.

$17.63

(2-8-44).

Commission and
its

five

Registration

ments were

tion statements will in normal

each

retirement

ors,

j are

Co.,

to
for the underwriting of the entire

S-l.

Offering—The 100,000 shares of capital
are being offered
by the company at
per share to- stockholders on the basis

stock

$11

formal

but. no

application,

have

basis

preferred stock

{outstanding common stock

satisfactory basis than
would otherwise be possible.
Offering price
is to be supplied by amendment,
Proceeds—Purpose of issue is to effect

;

for

issue

CENTRAL ILLINOIS ELECTRIC & GAS CO
Central

Co., Greenwood,
Co., Greenville, S.

Crawford

waivers, have

arrange

company

p .Registration

Greenville, S. C.,
Co., Spartansburg, S,

Trust

who

the

filed

liabilities,

pay current

bank

stock

ing price

ruling was entered by the
Consolidated has amended

available

management

held

and will expire at 3 p.m. on

Mills,
&

Courts

ferred

of Central Illinois Electric com¬

mon

scription warrants will be exerciseable

Proceeds—Will

1,000;

right,

bidding rule 400,-

ginning. Feb. 18,
r

Law

Citizens

750;

common

to offer for sale pursuant to the

company,

Commission's competitive

Chicago which planned to head a syndicate
to
distribute the stock.
.A hearing was

94,439

the

shares held of record at the
on
Feb. 17,
1944.
Sub¬

offered

C.,

company to the holders of
Its common shares, for subscription at $45
a share,
at the rate of one share for each

Co., Inc., 50%.; F. S. Moseley & Co., and
Shields &
Co.,
25%
each, all firms of

Chicago.
Offering—The

3,000;

to the public and spread will be
by-post-effective amendment,'
'
In its original filing Consolidated made
no
provision for the sale of the stock and
subsequently asked the Commission for an
exemption
from the competitive bidding
rule in order to sell the stock at a nego¬
tiated sale to the Central Republic Co. of

C.,

Registration Statement No. 2-5272.
Form Columbia, S. C., 750; Vivian M. Manning,
3-2.
(12-20-43.). :
'
/..-vX • ..: Greenville, S, C„ 750; Alester G. Furman
Co., Greenville, S. C., 500, and Frost, Read
Central Illinois Electric & Gas Co., filed
Ss Co., Inc., Charleston, S. C„ 250. vx
an
amendment on Jan. 25 to its registra¬
Offering—The company; offers the right
tion statement in connection with-proposal
to purchase preferred stock to holders of
of Consolidated Electric & Gas Co., parent
,

scribed

3,000;

bonds,

own

follow: H.

each

the

use

in the open market of Con-

purchase

solidated's

Address—Fourteenth Street and Sheridan

Underwriting—The

proceeds to retire Federated Utilities, Inc.,
3Va% bonds, and to apply the balance to

for

statement

plans

Proceeds—Consolidated

OFFERINGS

ABBOTT LABORATORIES

815

Underwriter—Distributors Group, Inc.,

principal underwriter.
Offering—Effective date of registration
statement.
At market plus underwriting

named

distribution

charge.

Proceeds—For investment.

Registration Statement No. 2-5298.
A-l.

Form

(2-1-44).

Registration statement effective
EWT on Feb. 18, 1944.
(This

list is incomplete this

11 a.m.

week)

Despite the occasional outbreak of vigorous speculation in rail¬
equities, the near-term pattern of the market appears to us to
much sidewise.
(Moreover, it is a little disturbing to
notice that strength in speculative railroad equities has been accom¬
?

road

pretty

panied by nominal price weakness in the case of many high-grade
investment stocks.)
Generally it should be recognized that while
railroad equities may be adjust-^
ing themselves to a much im¬ to say that buyers of rail equities

pretty

proved railroad situation, any in¬
dication that the war in Europe is

are

approaching its end would prob¬
ably bring about a sharp and
widespread ' desire to liquidate.

mitments

We believe it is
:

•

fair statement

!'• I.

v-VK"

;

....

;

...

calendar"

war

much

"fighting

the

and

basing their com¬

conviction that the

Europe

not

going

early finish.
Ralph E.
Samuel & Co. (Feb. 16y 1944).

have

any

Firm

Merrimack Mfg. Co.

For Dealers

Teletype—N. Y. 1-971

IIAnover 2-0050

Thursday, February 24, 1944

FINANCIAL CHRONICLE

THE COMMERCIAL &

816

Common &

New

Trading Markets

Plain Pfd. Stocks

Telecom
$5
'

P.ARL MASKS & C.O-

•

Convertible

Cumulative

par
*<

Corporation
f

•

;

Old

Preferred Stock

Convertible into 3 Shares of Common

New York 4, N. Y.

CIO Political Action Committee Refuses

Teletype

Records

New

York

Sidney Hillman, Chairman of the Political Action Committee of
Congress of Industrial Organizations, revealed that the.: CIO

had refused to allow a Dies Committee investigator to see its
records and financial accounts, contending that the Dies Committee

philadelphia

telephone

group

STREE T

NASSAU

REotob

J-

Dealers

Security

Association

NEW 'YORK- 5

YORK

NEW

COUPONS MISSING

Teletype

Bell

telephone

Entebpbise 6015

2-3600

■

1-576

investigate their records. Advices to this
contained in the New York "Herald Tribune of Feb. 19,

without authority to

was

effect

were

from which

also take the

fol-$

lowing:
Committee, Mr. Hillsaid in a statement issued at
CIO

The

CIO leaders and have
them tried before the entire House
or

other

MUTILATED
Unusual Inflow Of

Savings In January Reported

By Insured Savings Associations Of 19. Y. State

Representatives, with that body
as judge and jury.
The
Insured savings associations in New York State experienced an
other would be to take the case
unprecedented inflow of savings in January, it was announced on
to the Federal courts, he said.
Feb. 16 by, Carl F. Distelhorst, President of the Council of Insured
The CIO, on the other hand,
Savings Associations of New York State.
The announcement states
can
apply
for
an
injunction
that reports from 28 member associations showed gross savings
against Mr. Dies, but has no in¬
receipts of $5,457,776 for the month, the highest for this group for
tention of doing so, Mr. Abt said.
to appear personally before the
any month on record.
Withdraw-*
———\Vr;;;
By refusing to turn over its books
Dies Committee.
als reflected both the usual sea¬ the half-way mark in the Fourth
or to appear before his commit¬
f Mr. Hillman said that his ac¬
tion constituted the first open de¬ tee, Mr. Abt said, the CIO threw sonal increase and the extra with¬ Drive equalled 72% of the total
the ball directly to Mr. Dies, leav¬
fiance of the Dies Committee by
drawals for bond purchases dur¬ amount sold by these 28 insured
ing the next move up to him.
any group in the United States.'
ing, the Fourth War Loan Drive. savings associations during the
Mr. Hillman said that the CIO
f
Calling Martin Dies, Chairman
Political
Action
Committee
is The net increase in savings ac¬ entire Third Drive.
Preliminary
of the House Committee to in¬
vestigate un-American activities, working for registration of voters count balances was $392,167 or 8% reports indicate that in the end
vcougaic
wunuivi. ivmia
c
.;.
^
man

headquarters, 205 East 42nd Street,
will refuse any demands which
the Dies Committee may make on
it for records, files, documents or
materials.
Mr. Hillman said that
he and his associates would refuse

acting

Inquiries invited

S. H. JUNGER CO.
Members

Mr.

smear

Action [ Committee
is
neither subversive nor un-Ameri¬

Political

and, therefore, does not come

can

purview

the

under

the Dies

Committee.
/
At the same time Mr., Hillman
indicated that the CIO Committee

and a political program and rejected as an "impertinence" an at¬

tempt to investigate such a group

possibly

subversive

un-

American.

willing to be investigated by

any

properly authorized Congres¬
investi¬

sional committee or other

He revealed that the

gating body.

Bureau

Federal

He said that the Dies Commit¬
tee is interested in a

fishing ex¬

pedition "in order to defeat the
legitimate political aspirations oJ
millions
of
workers
and
their
families, farm groups, small busi¬
ness men and genuinely progres¬
sive elements."

Attorney

Phone

bitter

fight

Labor

concerning, the
party in New

Mr. Hillman has pro¬

posed that the party be broadened

able.

to admit all trade unions to mem¬

Mr.

that

two

possible

in combating the

One of these, he said, would

CIO.

be for the

issue

had

Dies

to take

clerk of the House to

subpoena for Mr. Hillman

January 31

bership, with authority on a basis
in proportion to their member¬
ship. The Right Wing of the ALP
has contended this is merely a de¬
vice to give

unions

Communist-controlled
the power to rule
the

ALP.

The Johns-lanvilS®

Corporation Issues Unique
Report On Annua! Operations And Results
The Johns-Manville

Corp., Lewis H. Brown, President, is to be
financial report which
the company is making to the public, giving an account of its stew¬
ardship of war-time operation for the year 1943.
The facts, presented in the company's report as oublished in the
advertising columns of the February 10th "Chronicle" and elsewhere,
certainly refute the statements of f
demagogues who would indict the to be retained in the business.
free enterprise system of "war
It should be noted that wages
and salaries
in 1943 were
profiteering."
17%
for the intimate and simplified

President's

greater, due to increases ordered

typical of this company's farsighted management and is indic¬
ative of its efforts in preparing
to meet the problems of the re¬
construction
period that looms

"The

a year ago.

unusually heavy inflow of

savings is all the
stated Mr.

significant,"

purchases

these

Amer. Util. Service

Birmingham Gas
Citizens Utilities

Community Gas & Power
Consol. Electric & Gas

Derby Gas & Electric
General Pub* Util.

four times

than

4.6 % of their

sets, representing
increase

net

every

keeping our company* sound and
healthy, and by anticipating and

50 last year.

as¬

dollar of

January these

the net increase

Government bonds

now

preparing for the future."

■

Further

The company manufactures
to its simplest terms,
company's 1943 report states more than a thousand products
that after deducting from its total and is serving our armed forces
Income of $107 % millions, costs and our war industries with in¬
sulations
for ships,
steel mills,
amounting to $48 million, em¬
ployees' wages and salaries of synthetic rubber plants and other
$43% million,.Government taxes vital war
industries; packings,
of $11 Vz millions, there was left
,
,
.
.
..
' \
e '
for the owners of the business £aske*s,
brake linings for war

Reduced

„

$2
for

million

dividends

approximately 2%
and $2% millions

machines; building products for
war

construction; Celite products

Pine

Specialists In

MINING

financing needs, these insured

as¬

represented an average of 82 war

128,300 of investments held there¬

bonds sold by each

added

war

employee."
bond sales at

•

CORRESPONDENTS IN

PRINCIPAL MINING CENTERS

Every American Must Have OpportunityFor
Decent Home And Income, Says Gov. Warren
Earl

Inquiries Invited

by the HOLC and the United

States Treasury.

ISSUES

DOMESTIC & CANADIAN

sociations in January retired $1,-

Y. Security Dealers Ass'n

Street, New York 5

war

HUNTER & CO.
Members New York Security Dealers Assn.
42

BROADWAY, NEW YORK 4, N. Y.

WHitehall

4-2968

1-110

Warren

California, speaking on a program on
Feb. 19, sponsored by the Association of Women Directors of the
National Association of Broadcasters to bring under way

ican

Home

declared

Campaign,

that

every

American

the Amer¬
must be

assured of the opportunity to have a decent home, a decent income
and the full benefit of health services.
We quote from the New

"Times"

York
went

Feb.

Warren

emphasized
that returning service men "will
be

acutely aware of the virtues of

happy homes in a free land since
they will recognize that the foun¬
dations of the country lie in the
four freedoms,

in free enterprise,

discipline, hard work, personal in-

fashioned virtues."
"In

the

broken

of war-torn
countries now: awakened by global
intercommunications such as the
peoples

radio," he added.
"We must face our

fund

responsibili¬

citizens to see that families

meet unusual

made

would

"during the

had

not

and

post-war

have

war

years

been
if it

for war

conditions

help, finance

necessary

been

developments.

this fund is intended

Part of

for probable

peace-time expansion that will
help to provide employment for
thousands of our men and women
now

in the armed

they return.

services, when
\ .In¬

Remington Arms
Tennessee Products

Triumph Explosives

MORRIS STEIN & CO.
Over-the-Counter Securities since 1924
50 Broad Street, New

Empire Sheet &
Tin Plate

Page
and

Insurance

Stocks

Broker-Dealer Personnel
Calendar of New
Canadian
Mutual

Items......

Railroad

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

Securities

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

Estate Securities.

available

upon

request

798

807
802
790
794
792

795

Security Salesman's Corner......... 809
Tomorrow's Markets—Walter Whyte
Says
795
.....

First Mortgage 6s, 1948
Memorandum

806

Municipal News and Notes....
Our Reporter on Governments......
Our Reporter's Report.
Public Utility Securities
Real

800

809

Security Flotations 815

Securities

Funds

York 4, N. Y.

Telephone HAnover 2-4341

INDEX
Bank

Automatics

Lanova Corp.

con¬

tingent obligations created by the
war, to care for capital expendi¬

tures^ which

Harvill Corp.
Johnson

coming international
scene, our democracy should have
the unity in home life to inspire

ties

ture

Electrol, Inc.

tegrity and other so-called old-

say:

Governor

Doyle Machine & Tool

Harrington & Richardson

20, which"

payments

the

Tel. WHitehall 4-7970 Tele. NY 1-2218

represent

than in 1942

Dividends of $7 per
share
were
paid
on
preferred
stock and $2.25 on common.

L. D. SHERMAN & CO.

savings accounts

This

in savings account balances.

Electric

United Public Utilities

since the Third Drive, plus earn¬

for overtime, for camouflage paints; asbestos are
assured the chance to make
although the number fiber; bombs and shells.
a decent income;
that there are
of employees were reduced
With an eye to the future when
by
enough decent houses to live in;
1,100 to 14,100. Taxes were equiv¬ the company will face the task of
that
there
are
health
services
ahead:
'
'•
alent to $13.56 per common share
converting its factories from war within the economic
range of all;
"We know that our obligations or $817.64 per employee. Earnings
production to peace-time necessi¬ that our schools really educate
can be met only by devoting all
after taxes were 41/30 per dollar
ties, Johns-Manville has deposited every member of the family."
our
abilities and intelligence to of total income,
comparing with $10,000,000 in a deferred expendi¬
creased

National Gas &

Members N.

$6,440,000

Teletype N. Y. 1-1779

Olgby 4-4833

associations

during the Fourth Drive amount
to

Ass'n

Security Dealers

Distelhorst, "in view of ings and net mortgage repayments.

the fact that also in

by the War Labor Board and in¬

The

statement

$142,658,474

were

greater than

11.5%

Gov.

commended

Total resources

Amer. Gas & Power

Bond

contributing to the Treasury's

records and documents of the or¬

courses

bonds to 22,979 individuals, more

ganization have been made avail¬

Political

2,409

mittee is at the moment engaged
American

counsel to the CIO
Action Committee, said

160,706 accounts.

13 % of their total assets.

York State.

Abt,

sales total by at least 50%.

increased

associations sold $3,884,375 in war

gating the CIO and that all the

John

accounts

Com¬

The CIO Political Action

Investigation,

General
Francis Biddle, has been'investi¬
of

orders

they will exceed their Third Drive

of these 28 insured associations on

was

for the month and the number of

Exchange PI., N. Y. 5, N.Y.--

master,"
Hillman said that the CIO
1

"America's No.

2-8780

SIDS MADE ON BONDS WITH

INCORPORATED

Members

4-4%

Trading Market:

Kobbc, Gearhart & Company

To Dies Committee

.■

Dealers Ass'n

HAnover
Y. 1-1397

25 Broad St., N.Y.

CHICAG0=^-==
Current

the

Members N. Y. Security

Home Laundries

Bendix

Pfd,

ISH.S.WIEN&Co.

and operates coin-operated

owns

$4.25 Pfd.

Cumulative Dividend 50c per annum

fg-J

Corporation
AFFILIATE: CARL MARKS & CO. Inc.

Common

American Airlines

' '

50 Broad Street

Y., N. H. & Hartford

FOREIGN SECURITIES
SPECIALISTS

England Pub. Serv.

* 11

SOUTH AMERICAN BONDS

Pfd.

Hill, Thompson & Co., Inc.
Markets

120

and Situations for Dealers

Broadway, New York 5

Tel. REctor 2-2020

:Tele. NY 1-2660

■'' x&'itu-!*.-

X-■ Hirr&i;fe>•"

v- l.v'+'v- v

Ji^

V^Kl/r? 'ff 1'•

v'y '

A>'■<*:*'''??•"- ■i>'-' A

COMMERCIAL & FINANCIAL

THE

Thursday, February 24, 1944

CHRONICLE

832

and to provide replace¬
men
taken into the
armed forces. By May this number
will be increased to 117,000, The

programs

Trust Companies

Items About Banks,
•?;''

President of i the Morris Plan Industrial Bank
Co. of New York,; of Binghamton, N. Y., to the In-

Colt,

Sloan

Bankers Trust

As-

Earle Blakeley as an

Vice-President; at a meeting of the board of directors, held

sistant

Mr. Blakeley was born
in Ottawa in 1903 and became a
citizen of the United States in

•

that day.

associated with the
from 1919 to
1923.
In that year he joined the
National Bank of Commerce, De¬
troit, remaining with that bank
throughout various mergers until
it became a part of the Guardian
National
Bank,
of which
Mr.
1930.

He was

Bank

Montreal

The

dustrial Bank of Binghamton.

the election ;

announced on Feb. 15
of

Principal Features Of AIB War Conference
In SI. Louis In June Announced By Colby

80th annij versary of the First National Bank
It
on
Feb. 18 marked the

59,000 by March 1. The most op¬
timistic estimates of the potential

Mo., June 6 to 8, have been announced by David L. Colby,
the Institute, who is Assistant Vice-President of the Boatmen's

National Bank in St. Louis. As was the case at the Institute's wartime
was
! of Jersey^City, N. J
♦
nM conference in Chicago last year, which served as its 41st annual
Feb. 18, 1864, "at a time when new
" '
credit facilities had
been made meeting, the conference to be<&> The outline — the conference
for
held in St. Louis will transact the
necessary by the Civil War, that
June 6, First
Institute's essential business and program follows:
the bank opened its doors at 1
Session
and
National
thus will serve as its 42nd annual Business
Exchange Place, the site it still
Public Speaking Contest; June 7,
occupies.
Operating under the pieeting.
Educational Conference and Chap¬
The program is being stream¬
same name it has had ever since
Administration
Conference;
lined to fit into two-and-a-half ter
it was organized, the First Na¬
June

supply, he said, leave mini¬
shortages of 37,600 men by
March
1 and
40,500 by May 1.
These
deficits,
the
Chairman
labor
mum

pointed out, may ,be even greater
since over two-thirds of the total

Business Session.
days of rapid-fire business ses¬
tional Bank has enjoyed uninter¬
Headquarters for the conference
sions, the annual national public
rupted growth in both size and
How¬
speaking | contest, for the A. P. will be the Statler Hotel.
Eighty years ago the
Vice-President prestige.
Blakeley
was
a
Giannini Educational Endowment ever, delegates will also be regisbank
occupied only one room
and with which he remained un- (
.
.
Prizes, a dinner and the annual i tered at the nearby Lennox and
til 1933. Upon the organization of j which was rented, and had a tapi- caucus, followed by a dance spon
Mayfair
Hotels,
owing
to the
the National Bank of Detroit in
tal of $200,000. Today I Exchange sored by the St. Louis Chapter of shortage of hotel accommodations.
Place is a 10-story building, and
1933, Mr. Blakeley joined that
the Institute.
the bank, in addition to operating
bank as Assistant Vice-President,
The Institute's Executive Coun¬
three branches, has total assets ol
organizing the bank's credit de¬
cil, according to an official an¬
more than $88,000,000. Nationwide
partment and for the past two
nouncement which has been sent
depressions have had little effect
years has been an active lending
to
national, chapter, and study
on
the continued progress of the
officer.
He became Vice-Presi¬
bank, and the payment of divi¬ group officers, has established a
dent of the National Bank of De¬
dends
has
been
uninterrupted five-fold purpose for the confer¬
troit in 1939, resigning from that
ence
and has recommended that
since the year it was founded. In
Vigorous
measures
must be
'position in January, 1944.
attendance be restricted in com¬
an anniversary message to the of¬
taken within the next Month to
ficers
and
employees,
Kelley pliance with recommendations of
Harry E. Ward, Chairman of
provide war production employers
Graham, President, expressed his the Office of Defense Transpor¬
of Chicago with enough labor to
Irving Trust Co. of New York,
tation.
for their loyalty.
announced
the
promotion
on appreciation
The purposes for which the con¬ enable them to fulfill their con¬
Nineteen of the bank's personnel,
Feb. 17 of Frank E. Fischer from
tracts on time, Paul V. McNutt,
including
Mr.
Graham,
have ference will be held are: To re¬ Chairman of the War Manpower
^ Assistant Vice-President to Viceview
the
educational
problems
served 20 years or more.
President.
Mr. Fischer has been
confronting
chapter
leaders so Commission, announced on Feb. 2.
associated with the Irving Trust
Mr. McNutt added:
Max Perl man was elected Presi¬ that an educational program de¬
Co. and the predecessor — the
"Many manufacturers
already
dent
of
the
Washington Trust signed to help banks in the train¬
Columbia Trust Co.—since 1917.
have failed to meet delivery dates
Company of Pittsburgh at a meet¬ ing of new and upgraded employ¬
and
there
is
imminent
danger
ees can be effected; to review ad¬
ing of the board of directors on
In order to take care of the
Jan. 28, it is learned from
the ministrative problems confronting that others will be unable to
growing number of transactions
Pittsburgh "Post Gazette," which chapter leaders in order that the maintain their production sched¬
pertaining to special checking ac¬
stated that he succeeds the late most effective methods of present¬ ules unless the entire community
counts, personal
loans and the
ing and publicizing such an edu¬ unites in solving its manpower
William C. McEldowney.
sale of War Bonds and stamps,
cational program can be achieved; problems.
Failure to keep in step
Mr. Perlman has been associated
Manufacturers Trust Co. recently
to review the progress of the Job with the national effort will be
announced that,
beginning Feb. with the institution for 40 years,
Instructor
Training
(JIT) Pro¬ a serious blow to the war pro¬
21, the transactions pertaining to serving for the past 30 years as
gram which is considered essential gram.
these services will be handled on Treasurer.
to the war effort; to review the
"Unless industry's demand for
the main floor of 43 Beaver St.,
At the same meeting, Charles H.
broad overall
training needs of labor can be met," Mr. McNutt
where complete new banking fa¬
Sachs and former State Senator
banks for the next several years
said, "Chicago will be declared
cilities have been installed. These Frank J. Harris were elected Viceand to plan for an adequate edu¬ a critical area on March 1 and
premises are located two doors Presidents.
cational program to cover those classified in
Group I, that group
east of the bank's principal office
needs; to elect the Institute's offi¬ of areas in which the labor mar¬
at 55 Broad Street.
It is announced by the Board
cers
for the ensuing year
and ket is admittedly so tight as to
8, Second

Must Relieve Labor

supply consists of potential
of housewives and trade
and service workers. Included in

labor

reserves

the

pected

14,886 shares of convertible pre¬
stock for
redemption on

ferred

March

24, 1944, at $50 per share,

the
State
Savings Bank of Eseanaba, Mich.,
a
State member bank of the ReSystem, has changed its
to State Bank of Eseanaba.
serve

plus the accumulated dividend of
cents per share from Jan. 16
to the date of Redemption. Notice
to

redemption has been mailed
whose shares

those

have

that

System

serve

of the

of the Federal Re¬

Governors

Manufacturers Trust Co. of New
on
Feb.
18, drew by lot

been

selected, and copies of the certifi¬

title

The American National Bank

Fla.,

Pensacola,

announces

transact other

with
Vice-

available at the office

of the

company.

Fellowes

William

has been elected
Bank

Morgan,

Jr.,

trustee of The

for

Savings in the City of
New York.
Mr. Morgan is Chair¬
of the

man

of the

Board

Brook¬

Bridge Freezing and Cold
Storage Co.
His father was a
trustee of The Bank for Savings

lyn

from 1919 to 1941.

C. Arthur Kenney was appointed
Assistant

Secretary

Trust

Brooklyn

Co.,

the

Brooklyn,

N. Y., at a meeting of the Board
of Trustees of the company held

the
facilities,

upon

expiring
such

chapters and study groups
with a membership of 100 or less
to two delegates

be limted

"As

to the

"Our
with

somewhere

local

the

WMC

the Chairman
establishments
of the entire
labor demand were expected to
have hired 15,000 workers in No¬
vember and December, 1943. They
were
able to employ only 3,000,
representing an 80% lag in hiring

Result Of Treasury
Bill

Bank, of Los Angeles, the follow¬
ing
L.

announced:
Brittingham, former Assis¬
Vice-President,
to
Vice-

promotions were
G.

tant

President;

former

Brown,

and

Vice-President

Junior

Hollywood - McCadden
branch, was elected a Vice-Pres¬
ident; E. M. Peterson was pro¬

Manager,

the
be
ten

announced

the

degree

awareness

and

elected

was

Vice-Pres¬

Junior

May 25, 1944, which were offered
on
Feb. 18, were opened at the
Federal Reserve Banks on Feb. 21.
The details

study they represent are entitled.

the

company's

New York office,
Street, New York City.

26 Broad

(includes $75,003,000 entered on a
fixed-price basis at 99.905 and ac¬
cepted in full).
Average price, 99.905 + ; equiva¬
rate
of
discount
approxi¬

lent

mately 0.375% per annum.

Mayor

of
community
cooperation."

Frederick H.
■

Viemeister,

As¬

sistant Secretary of the Brooklyn
Trust Co., has been elected a Di¬
rector of the East Brooklyn Sav¬

May wood branch;
Vogel elected Junior Viceand
manager,
Pico-

manager,

President

Figueroa

branch;

Feb.

Clifford F.

President of the Association.
vVm:

•SI

Mr.

Viemeister is Regional Supervisor
of Brooklyn Trust Co. branch of¬
fices

the

Brooklyn.
.y.rt

Post,

the

Broadway region of
He also is Treasurer of

Broadway Merchants

Cham¬

ber of Commerce.

The

New

York

State

Department reported

Banking
Feb. 10

Bower

branch.

Wilmington

manager,

ings &; Loan Association of Brook¬ Frank L. Beach
lyn, New York, it was announced sonnel director.
.

elected Junior Vice-President and

was

elected per¬

recognition of the part that
play in banking today, the
of the bank promoted
bank women: Mildred Rob¬

women

directors
two

erts,
was

former
elected

Assistant
Junior

Cashier,

Vice-Pres¬

ident; and Irene Parsons, Secre¬
tary to President H. D. Ivey and
Secretary of the bank's Executive

Committee,
Cashier of

was elected Assistant
the bank.
Both have

that it had given its approval to a

spent many years with the organi-

certificate of change

zation"

name

equipment.

Miss

Roberts,

with

the

The

the

«•

directors

also

confirmed

appointment of H. H. ChrisVice-President.
Mr .

tensen,

Chicago, he said, "now is in the
same position Detroit was in the
spring of 1943 and Los Angeles
in the

summer

Christensen is head of the bank's

enlarged
consumer
department.
~

credit

loan

approximately

rate of
0.356%

annum.

equivalent rate of
approximately 0.376%

Low, 99.905:
discount

per annum.

accepted.)

maturity of a sim¬

There was a

ilar issue of bills on

Feb. 24 in the

$1,008,704,000.

amount of

for Jan.

Cotton Spinning
Bureau

The

nounced
to

Census

an¬

Feb. 19 that according

23,330,852
in

preliminary figures

cotton

for at

of the amount bid

(45%

the low price was

spinning spindles were

place in the United States on
31, 1944, of which

for

October,

for

22,599,426

22,631,338 for September,
for August

776

number

22,632,for

and 22,935,012

The

1943.

January,

active

aggregate
hours

spindie

reported for the month was

9,723,-

Based on an activity of

811,079.
80

No¬

December, 22,623,406 for

vember,

hours

per

week,

the

cotton

spindles in the United States were

operated during January, 1944, at
124%

capacity.

compares, on

This

for
and

125.3 for No¬

129.5 for October,

September,
139.8

average

percentage

the same basis, with

115.3 for December,

vember,

of 1943.

122.5

127.5

for August

fpr January, 1943.

The

number of active spindle

"By March 1, 94,600,additional
hours per spindle in place for the
employed to
of expanding month was 417.

workers must be
meet the demands

High, 99.910; equivalent
discount

Jan.
22,217,994 were
explained, "is lagging operated at some time during the
in the output of a
month, compared with 22,596,322

only by Detroit and Los Angeles,"

since

opment.

competitive

of accepted

Range
bids:

per

"One of the principal reasons
1915,
is a
past
lagging
production,"
Mr.
President,
Association of Bank for
Women, member National Wom¬ McNutt said, "has been the in¬
en's
Party,
and a member of ability of employers to obtain
Business and Professional Women adequate
working
staffs.
Chi¬
of
Los
Angeles
and
Women's cago, he pointed out, has been
Auxiliary, Los Angeles Chamber relatively late in converting its
of
Commerce.
Miss
Parsons, peacetime industries, especially in
President
of
National Business iron and steel, heavy machinery,
and Professional Women of Los food and clothing, to war produc¬
The construction
of new
Angeles, has been recently ap¬ tion.
pointed General Chairman to or¬ war facilities is just nearing com¬
ganize a Women's Division of the pletion and the staffing of these
has
Committee for Economic Devel¬ establishments
just begun.
bank

$1,007,481,000

accepted,

Total

The advises from the WMC fur¬

elected Junior Vice-President

and
B.

W?-,
W::

son,

for, $1,978,929,000.

Total applied

Assis¬ Registration of non-delegates is to Mr. McNutt
Assis¬ be permitted, and they are to re¬
particularly
17, 1944.
Mr. Kenney has tant Vice-President, Hill Street
ceive the same privileges as dele¬ number of vitally .needed items.
been with the company since Jan¬
office;
G. Leo Hess, Assistant gates, with the exception of the
Among these are aircraft engines
uary, 1933, and is assigned to the
Cashier, was promoted to Junior right to vote.
and parts, heavy machinery and
Corporate Trust Department at
Vice-President; John C; Hender¬
electronic
Ford Prior, former
Cashier, was elected

tant

of this issue are as

follows:

the

ident;

Feb.

$1,000,000,000 or there¬
bills to
dated Feb. 24 and to mature

abouts of 91-day Treasury

announcement ther said:
says the Council recommends that
"Chicago, the nation's third most
delegates
representing chapters important war production center,
moted
from
Assistant Secretary and
study groups are to have full where the dollar volume of 'con¬
to Assistant Trust Officer; B. A.
authority to cast the number of tracts—$6, 500,000,000 or 4.5% of
Steen, manager Broadway office, votes to which the chapters or the
nation's
total—is
exceeded
Moreover,

of the Treasury
22 that the

Feb.

tenders for

Executive

exception that no chapter will
permitted to send more than
delegates.

Offering

Secretary

The

else.

40%

schedules.

Kelly's special committee,, is in¬
Council's creasing its efforts to
balance
recommendations, chapters with a labor supply and labor demand
membership of 100 or more, are in
Chicago," Mr. McNutt said.
to
be
permitted one additional "Our two years of experience
delegate for each 100 additional makes it plain that the success of
members or fraction thereof, with a local manpower program rests
the

Under

workers,

representing

organization,

assistance

having in

are

said that 57 major

conference.

regular meeting on Feb.
15 of the board of directors of
Citizens National Trust & Savings
At the

employers

finding

those
are

the diffi¬

indication of

culties

character that they can not

found

renew

from

commute
other communities.
will

who

those

number

small

comparitively

contracts

facilities

unless

trans¬
in¬

service

and

been employed and a

heretofore,

war

industries;

trade

dustries; the thousands of youths
and
housewives who have not,

expansion

further

nation's holding of all new
the an¬ and the refusal to

that

cate numbers for the shares drawn
are

the bur¬

activities."

and

construction

the

from

fers

explained that
the immediate result of such clas¬
sification would mean the with¬

transportation
of nouncement points cut, the Execu¬
tive
Council
has
recommended

13.

Feb.

being placed by wartime re¬

quirements

permit
of

realization

full

In
dens

of its
President, Charles W. Lamar, on
death

the

regret

official business of

the Institute.

potential supply
which may be ex¬

manufacturing

War Plants: McNuIl

York

sources

the layoffs

are

Shortage In Chicago

supply in sight shows only

labor

President

ence

principal features of the program for the wartime confer¬
be held by the American Institute of Banking in St. Louis,

ments ' for

•-.

StalKS®

V. /.

Full text of Commercial and Financial Chronicle : February 24, 1944, Vol. 159, No. 4258, Section 1

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