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•1
Final Edition
THURSDAY
\
New
Number 4042
-
Section 2
a1
;
(Beg. U. $. Pat. Officoj
Volume 155
In 2 Sections
York, N. Y., Thursday, February 5, 1942
Price 60 Cents
a
Copy
GENERAL CONTENTS
Editorial
Page
Foreign Bonds
;(•....
Connecticut
Speaks.
Assignats, Old and New,.,.-...",
THE FINANCIAL SITUATION
582
......
;
562
.
563
,,
Regular Features
Financial
On
European Stock Markets
News;
.
on
the
Although
United
Nations
in
cern
a
market like that of
instant repercussion.
London, where all developments find
tling reports of the siege of Sing¬
kept dealings to a minimum,
pean
this
tion
apore
week."
Levels
tained
well
main¬
London
Stock
were
the
on
Continental markets remain
A reflection of the situa¬
in
France
was
available,
sparse.
however, in the report to the an¬
stockholders meeting of the
nual
.
.
561
..
;,.........-.
.
561
561
/vV;.
.
panies
580
............................
State of
Trade
Commodity Prices—Domestic Index 576
Commodity Prices—World Index.... 575
Carloadings ......i.;
574
Structural Steel Bookings in 1941... 574
Engineeiing Construction Higher
575
Paperboard Industry Report......
575
Weekly Lumber Movement.......... 576
General
Review.....;
;v*;....;.
563
Index................
Fertilizer Price
577
Weekly Coal and Coke Output...... 577
Exchange in the final half of
Bank of France.
last week. South African gold
phasized the startling advance of
Petroleum
circulation
Weekly Steel Review
578
Electric Power Output .......;....., 579
mining shares fell,
of
sabotage,
but
again
when
little
damage
to
that
mines
the
London
was
faced
Grand
as to the grand strate¬
of the United Nations in the
gy
leaguered,
war
general
a
Debits
Coal
Stocks
against
579
579
Morgenthau Urges Taxation of
Municipal Bonds
Home Loan Banks Report 1941
aggressors
573
Report
The
dent Roosevelt and Prime Minis¬
National
improved
yesterday,
ter
Urges
after
Churchill,
in
collaboration
disclosure of vast plans for
with their expert advisers. Al¬
the relief of Singapore and
though this is generally under¬
restoration of the Far East¬
stood, a good deal of restlessness
ern situation.
has been occasioned by the ap(Continued on page 582)
<
Reports of activities on Euro¬
On
ery Sales
Far Western
followed.
made by Presi¬
573
Income
plainly must be
finally
Consumers'
Hands..
downward drift of quotations
tone
in
Products...,'.... 578
Moody's Commodity Index.....,,...
SEC
Axis
the
577
...
Its
and
Miscellaneous
Strategy
Decisions
with
the fact that Singapore is be¬
and
the
Bank
everywhere in Europe.
When business
resumed, after the week¬
end,
and
dangers in¬
herent in the tendency.
A flight
from •• currency
is
in
progress
steadied
it appeared
had resulted.
was
reports
on
This report em¬
.
Items Abdut Banks and Trust Com¬
are
The unset-^-
.
Moody's Bond Prices and Yields..;, 577
girding themselves for
unlimited war and will doubtless manage a turn of military affairs
before long, the Far Eastern situation is such as to occasion con¬
easy.
v.;,;......'.
Foreign Front.
Washington Ahead of the
From
Prices of securities in the London stock market moved entirely
the pivot of war news in recent sessions, with the general tone
Situation
The
Industrial
Business
Machin¬
573
Higher 573
Index
Banks
Paid
573
Head
of
574
ment
Banks to
Holdings
Travelers
Warned
Abroad
ments
SMA
London
Govern¬
574
Taking Docu¬
on
....................
December
SEC Amends
Increase
Purchases
Higher..
Proxy Rule
Stock
Strikes
in
575
575
575
Exchange.,..,.....,.
English Financial Market.
Fewer
December
575
575
.,..,575
NYSE
Odd-Lot Trading............ 576
Trading on New York Exchanges.,., 576
Committee Ends Hearings on
FROM WASHINGTON
House
Securities
NYSE
AHEAD OF THE NEWS
Acts
\
Blocked
on
H.
R.
569
Account,........
539
Named to SEC.......
O Brien
569
ft
Silver
ac-'.
;
Consumption .in.
Canada
Uw§,..,and
579
..............
Savings and Loan Co.'s Ins. Program 570
War
is
Crazy things happen in war.
One of the craziest in this war concerned the recent episode of .a
man
who
had a $7,000,000
contract from the Government.
He
wrote
to
a
crazy
one
of
thing, of course.
Donald
Nelson's
men
that his
workers
dis¬
were
thought something should be done for their morale.
The best thing he thought that could be done was to put uniforms
on
them.
Investigation revealed^
best
that he was one of the leaders the
piano
player
in
the
of the Knights of Kamelia, one of House,
overruled
him
on
the
those Ku Klux Klan things. This grounds that it would make Mr.
gruntled.
fellow
He
naturally
thinks in terms
of uniforms.
For your information, there are
exactly 24 agencies around Wash¬
ington studying the question of
what
The
we
shall
conclusion
more
do
after
of all
the
of
war.
them
is
Government
spending.
important of the lot and
the
one
most
concentrating on
post-war Government spending is
Most
economy
will
because of the
be permanent.
will occasion outbursts from
in
ning Board, headed by the Presi¬
dent's uncle, Frederic A. Delano.
but
some
which
be effected.
One of the members of the House
the
members,
the National Resources and Plan¬
This
one
end
is
will
economic
in all
likelihood
proposal
to
unit
of
out
make
all
of
the American continent.
Appropriations
Committee
re¬
In De¬
cently wanted to cut out its an¬ cember, representatives
of
this
nual appropriation of some $100,- Government
working at the di¬
000.
tive
The
Chairman, Representa¬
Cliff Woodrum oi Virginia,
rection
of
the
(Continued
President, and
on page 583)
in
An index covering material published in the "Financial
Chronicle" during the months of September,
October, Novem¬
ber and December will be mailed to all "Chronicle" sub¬
scribers in the near future.
Hereafter indexes will be
pub¬
they have in the past. These indexes
will, of course, prove particularly helpful to those subscribers
who bind their copies of the "Chronicle." Thus, we wish to
point out that before adoption of the new form in which the
"Chronicle" is now published extensive experiments in
binding
were
made.
As a result, it has been demonstrated that the
as
quarterly bound volumes are thinner and easier-to-use—
and being thinner, they open flat which makes them easierto-read. More than ever before, the "Financial Chronicle" is
new
adaptable for binding for permanent reference
Government is still reticent on the subject, save as it has
thought it wise to yield in deference to President Roose¬
velt and in satisfaction of popular
feeling in the United
States.
purposes.
'
•
Not so,
however, with the Government of the United
Charter, wrung, one suspects,
from a reluctant Churchill, was but a culmination of a
long
campaign by President Roosevelt to bring sharply into the
foreground his ideas of how the post-war world should be
designed and shaped by the victorious democracies, among
which Russia appears now by some sleight-of-hand to be
included. At that time, of course, President Roosevelt, or
any one else from this country, could claim an influential
voice in any post war settlement and world
management
only hy virtu? of "aid short of war" liberally granted under
lease-lend and similar arrangements, but. it was obvious
States.
The so-called Atlantic
(Continued
Boards
..........
.....
on
564)
page
572
Asks Fund to Aid Conversion Jobless 572
SEC
Reports Transactions
572
Exch. 572
Navy and Marine Ckups Expanded.. 572
Roosevelt Signs Price Control Act.. 581
......
With the
Price
tend to spare no
cies
Resolution.. 581
Conference
OPM............
Abolishes
Mortgage Clinic....
562
......
562
War Effort........
563
Chief of CCC Unit..........
Named
in
Part
to
as
If inflation is to be controlled, it is
„
W.
Douglas in War Post.....* 564
Kansas City Reserve Bank Report.. 564
New South Wales Tenders Asked....
are
*
in
*
com¬
*
cost
of
of living.
be
steps
now especially impor¬
taken to stabilize the
The Department of Agriculture and the Office
intend to pool resources to do all
Administration
Price
they
577
effective, positive
accomplish this end.
to
can
:;i
if
*
564
Agrees on Peace Formula....
MacKenzie Named to Cleveland
that
tant
563
Realtors
Lewis
responsibility and we
objectives to be achieved.
important
534
Continue
to
Nelson
this
share
plete agreement
Urges Civilians in War Work Abroad
of the Price Control Act, the Office of
and the Department of Agriculture in¬
effort to prevent inflation. These two agen¬
passage
Administration
584
Ceilings On Latin-American
Exports
.....
;»
584
Pan-Amer.
^
9
of Com¬
pany Officers
Ferris Again Heads Coast Stock
Labor
577
Pedrick Named N. Y. Rev. Collector 577
Bank
Reserve
Savings Banks Mtge. Loans..
Sell Wheat, Corn.......
Y.
N.
To
Boston
First
New
(Ann. Report)..
Corp.
President Scores Farm Price
of
Control
Price
Gerard
Sections
Act...,
.....
Swope Now Treasury Ass't..
Consumption
at
Order
and
Axis Powers to
567
Exchange
567
OPA
567
Janeiro Bond Payment
Asks End of N. Y. Mtge.
Tire
Canadian
Delays
Payments
so
its
use
powers
to
high production costs.
A
high level of production will not in all cases be sufficient.
of line the Office of Price Administra¬
tion, with the advice and assistance of the Department, will
establish maximum prices. In such cases it will see that this
protection is afforded all the way through the channels of
Where prices get out
distribution
to
there is not
the
ultimate
enough to
From time
Office
of
to
Price
to-
consumers
time the
those
In
consumers.
cases
where
around, steps will also be taken to
go
that there is fair distribution
assure
to
all.
*
*
*
Department of Agriculture arid the
Administration
Commodities
will
which
are
draw
in
the
attention
relative
of
abundance
and to desirable shifts in food habits.
We
581
Change
Hours 581
SEC Liberalizes Inventory Policy
SEC
will
that prices of the things that farmers buy are held down,
that farm production will not be restricted by unnecessarily
see
Moratorium 581
Orders...
Exchanges
Office of Price Administration
The
567
Diplomats
de
563
De¬
Modified
Oils
Rio
566
567
S.
U.
567
Labor Board Reports...'.., 566
Civilian
Sees
565
579
Capital Issues in England
New War
565
565
Payment on Finnish 6s
Fats,
quarter,
to win the war. An expression of their conviction
complete destruction of "Hitler and Hitlerism" in
Europe was the essential aim of hostilities was about as far
as
they cared to go in this direction. Indeed the British
was
that
570
,.
pression Levels
lished each
task
settlement which they envisaged after the fight¬
finished—insisting that the obvious and urgent
Reports on Peail Harbor 571
WPB Restricts Rubber Use...
Index Te Be Published
was
Reports on Security Offerings. 571
Colonisl Trust Co. Deposits Higher. 571
U. S., Britain Establish Resources
CCC
the
ing
SEC
ABA
In this
connection, it is inter¬
esting
to note
a
most
drastic
change which is approaching and
which, according to indications,
Republican
Gen.
McArthur
Committee
the peace
Price
Anyway, the Delano agency has
repeatedly warned that many of
the changes being effected in the
war
to
Favors World Trade Dollar
Roosevelt angry.
national
Tiibute
Roosevelt's
refused to be drawn into any extended discussion of their
"war aims"—or, to put it in another way, the character of
Trade
Chicago
Board
Expects
As
staggering as the costs of winning this war will
obviously and inevitably be, yes, even as almost incom¬
prehensible as will probably be the sum when to the cost
of winning the war are added the
unnecessary non-defense
outlays which apparently are destined to continue despite
all protests, thoughtful observers are
beginning to wonder
if the cost of
"winning the peace," as the popular saying now
goes, may not be about as great, possibly even greater. For
a
long while Mr. Chamberlain and later Mr. Churchill
581
Ruling on Utility Debt
should like
mobilize
its
full
to
repeat
resources
that the Government intends to
agricultural production
for all-out
prices fair to farmers and consumers. Our aim is to stabilize
living costs and prevent wartime inflation or postwar defla¬
at
581
tion.
583
seeing that
WPB Advances
Sugar Rationing Date 583
War's
to
of
Conduct Credit Clinic
First
Decreased
Mutual
Costs
Met
Bank
N.
Y.
assistance
on
the job is
of
farmers
and
consumers
done.—Secretary Wickard
in
and Leon
ends, if it is ended,
in New Deal
one
of the strangest interludes
history.
533
Shares on NYSE
Reserve
Bank
The
563
to
Decentralizes
Savings Bond Program...
568
Henderson to Ration Retail Goods..
563
Defense
Here
563
Accounts
Stabilized
Dividends
invite
by
Consumption
Savings
We
the
Henderson.
60%
ABA
public
now
waits for events to
this joint statement.
give specific meaning
THE COMMERCIAL & FINANCIAL
562
Editorial—
Editorial—-
Nelson Abolishes OPM;
Thursday, February 5, 1942
CHRONICLE
New Organization Has
Six
Nelson, War Produc¬
tion
Chief,
on
Jan. 21
trie
Office
of
Production
abolished
Man-
brought its main
functions under a new integrated
organization with six major divi¬
agentment and
The
sions.
Connecticut Speaks H-.
Major Divisions
Donald M.
A
% Foreign Bonds
77
There is
special election has just been held in the State of
modest revival afoct of
a
V
old and curious
an
Connecticut, with results that must afford satisfaction and controversy, which throws much light upon the consider¬
encouragement
believe that the
to comprehending citizens who do not
highest word in efficiency and statesman¬
that
ations
guide the Securities and
Exchange Commis¬
sion in its administration of various enactments.
The New
York Stock Exchange has approached the Commission with
ship has yet been spoken in Washington. The object was to
Neison said, is an interim plan
a view to relisting of the score or so of foreign dollar bond
designate a Representative in Congress in succession to
subject to possible future revision.
The
six
major divisions,
with Honorable John Joseph Smith. As a New Dealer, running issues, still outstanding out of the forty-three issues which
their heads, are:
Quite aside from any relative
on
the Democratic ticket, Mr. Smith was first elected in had to be dropped in 1936.
Purchases—Headed by Douglas
merits of listed or counter trading, this incident reflects
1934, and he was re-elected in 1936, 1938, and 1940, with
organization, Mr.
new
MacKcachie.
;
the blundering and, lack of comprehension that often has
majorities, except in 1938. In that year he
marked SEC practices and rulings.
V
;
V
barely survived Connecticut's revolt against the spending
On May 15, 1938, the deadline was reached for regis¬
spree in Washington, which gave his State a Republican
./
L. Batt.
' 77 %
-'\7:
Governor and Senator. In 1940, however, that revolt en¬ tration
by foreign obligors of dollar securities which such
Industry Operations
Headed
countered the new concentration upon foreign affairs and
obligors desired to, have continued in the status of listed
by J. S. knowlson,'
succumbed before what appeared to some as the final defeat trading in the United States.
Labor—Headed by Sidney HillThe Securities Exchange
man.'
of even moderate opposition to the Presidential * policies, Act called for such
registration, but provided the Commis¬
.
,
Production—Headed
W. H.
■
/ • Materials—Pleaded -by William
Harrison.
by
•
substantial
.
„
•
—
Civilian
by
Supply—Headed
Leon Henderson.
Another
the
important
set-up is
new
of
branch
requirements
a
branch, also headed by Mr. Batt,
whicn
will
advise
allocations
on
Nelson
also
delegated to
Ernst Kanzler, head of trie OPM
Automotive branch, the direction
of
the
Chief
Tne
Jan.
on
automobile
Production
War
20 called upon
industry to halt
of
duction
new
and turn to
A
conversion
automobile
program.
cars
the
pro¬
Feb.
on
1
production.
war
planning
board is also cre¬
do the "thinking" for the
ated to
production program but will
war
have
administrative
no
func¬
tions.'
Completing
tion
a
new
by
organiza¬
and
division
reporting
headed
botn
the
statistics
a
are
progress
Stacy
division,
May;
a
division, under John Lord
O'Brian; an administrative divi¬
sion, headed by James A. Robin¬
son, and an information division,
headed by Robert W. Morton.
According to Mr. Nelson, a con¬
tract distributing division, set up
legal
small business aid headed
aid
to
by Floyd B. Odium, will be incor¬
porated under the production di¬
vision.
"is
tion.
"This," said Mr. Nelson,
Mr. Odium's recommenda¬
on
Mr. Nelson
added that
Mr.
Odium himself "will stay on
with
special adviser on
a
as
mutations.
preferred aspirants for appointments to the Federal the obligors would not care to bow their sovereign heads at
Judiciary and late in 1941 announcement of Mr. Smith's the insistence of an administrative agency of the United
77'
7\7.7S''7;7'77 :,■/
resignation to accept designation as a United States Judge States Government.. ■;
surprised no one. Perhaps if the results of last Tuesday's
That was a time, it must be remembered, when war
election had been foreseen in the White House the appoint¬
clouds were not viewed anxiously in Europe or the East,
ment
might have been withheld. But the President did
and the election to fill it was held on
Jan. 20, resulting in a demonstration of an almost revolu¬
tionary revulsion in public sentiment and the election of
a Republican, Honorable Joseph E. Talbot, the Democratic
candidate receiving only 43.87% of the vote cast and falling
beneath the weight of a plurality of 3,615.
create the vacancy
Connecticut's
representation in the Senate is* already
worthy of its long history of courage as a Colony and in¬
dependence as a soyereignm^mB^r of the Federal Union.
Senators Danaher and Moloney, the former a Republican
leader and the latter a Democrat with really democratic
convictions, have consistently refused to become* lackeys
of the New Deal and have struggled persistently against its
vagaries and excesses. The new Representative, it can be
hoped, will strengthen their hands by his co-operation.
Then, it may be anticipated that with the coming of the
November elections, the faithful trio will be augmented to
the full strength of the State's delegation in Congress. Last
week's special election may well mark the turning" of the
tide.';
7./777;;. ■...'77.', 77.;
eco¬
me
their
obtained his third re-election,
are
of materials.
Mr.
Mr.
Smith, in consequence, sion with a good deal of discretion as to the information to
receiving 54.92% of the vote be filed by foreign obligors. ' Rather rigorous standards
cast in his district, with a clear majority over all opponents were set up, however, and these were not relaxed at the
of 11,255. But thick-and-thin supporters of the New Deal time, even though it soon became apparent that many of
whatever
A
nomic relations."
Significant Reversal Of Public Opinion
The Fifth Congressional District of Connecticut presents
interesting cross-section of the voting public of New
Clinic
In Seattle Feb. 19-20 England. It includes all the 26 towns of Litchfield County
The
third
in
a
nationwide and 11 of the 27 towns of New Haven County, embracing
series
of
real
estate
mortgage most of the busy manufacturing communities of the Nauga"
clinics sponsored by the American
tuck Valley and the dairying and residential sections, less
Bankers Association will be held
completely industrialized, of the Litchfield Hills and the
in
laWCPW
ABA Mortgage
an
Seattle, Wash., Feb. 19 and 20, it
announced by Stuart C. Frazier,
region drained by the northern half of the Housatonic
passes into Massachusetts.
This district is
Savings Division, who is Exec¬
undoubtedly typical of at least the whole of Southern New
utive Vice-President of the Wash¬
ington Mutual Savings Bank of England. Voters there think very much as they do every¬
Seattle, Was a.
Tne tneme of the where throughout that portion of New England, very likely
clinic will be "Real Estate Mort¬ much as
they do in most of the area westward and south¬
gage Finance in the War Emer¬
ward to the Missouri River, the James River and the Ohic
gency." Tne agenda for the meet¬
River.
Both candidates, the Republican who was elected,
ings
is
under
tnree
principal
headings
"Insured
Mortgages and the Democrat who went down to impersonal defeat,
and
Construction
Loans," "The were men
of character
and
culture, trustworthy and
is
President
of
tne
Association's
River, until it
—
of
Effects
the
Upon
Market,"
and
"Measuring the Quality of Mort¬
the
Emergency
Mortgage
efficient, and well and favorably known throughout the
whole district.
Both had sufficient
political experience and
political offices in which their conduct and quali¬
topics will be discussed in detail ties had appeared completely above criticism.
As gentle¬
by mortgage loan experts
and men of refinement and
culture, in vigorous age, and admir¬
delegates at the clinic, whose com¬
ably equipped to serve in the highest fields of Federal legis¬
ments from the floor will be wel¬
comed.
Informality will charac¬ lation, there was but little, if any, reason for preferring one
Loans."
gage
terize
the
Each of these major
proceedings
these
of
"working sessions."
Letters
the
of
clinic
invitation
have
been
to
attend
sent
to
all
which
embraces Idaho, Montana, Oregon
and
Washington.
The sessions
banks
in
the
clinic
area,
had held
the other.
over
The campaign was
The
"question and answer" procedure
and
Mortgage Finance.
will be used extensively through¬
out
the
conference, and banks in
area have been invited
the clinic
to
send
tion's
questions to the Associa¬
Savings Division in New
York,
for discussion
sions.
at the
ses¬
ing could continue.
a
Efforts
also
must
or
excitation.
The successful
candidate took
supported without question and everything sub¬
ordinated to the promotion of their efficiency and ultimate
triumph.
He urged strongly the value and importance of
independence in the Federal legislature and the
irreplaceable utility of a capable and loyal opposition in
Congress. In short, if ever an election for Congress occurred
in
obligors
from the roster
d1 the New York Stock
It is fit to note here a
bit of unrecorded history that
of the SEC position.
Bolivia at
that time was engaged in a long and exhausting war with
Paraguay, over the Chaco area.
As an important debtor
here, Bolivia was urged to file, but hesitated to do so on
illuminates
the
the absurdity
ground that the financial information desired
by
the
of the day.
might be
Even this consideration
modification
of
SEC, and made generally available after filing,
of aid
to
its enemy
failed to occasion
a
the Commission
quirements, and Bolivian issues went off
along with the rest.
Nor
with
was
the SEC
more
re¬
the Big Board,
cooperative, for a long time,
respect to the registration requirements on new
for¬
eign issues under the Securities Act, as amended.
Canada,
Argentina and a few others finally overcame their reluc¬
tance to compliance with provisions of American law and
regulatory procedure, but others refused to compromise
their sovereignty to this degree.
Much financing by Can¬
adian provinces and municipalities was lost to our market
in consequence.
Now that the New York Stock
the
Commission
issues
for
restoration
delisted in 1936,
Exchange has approached
of formal trading in the
the opportunity is before the regu¬
latory body to review its entire stand on foreign obligors.
The position to be taken well may have a highly import¬
ant bearing upon international financial relationships in, a
score of directions.
It may also indicate whether private
foreign borrowing is to gain sensible encouragement, as
against the political loans which now are the rule and
which always plagued European relationships in the hey¬
day of political lending there.
any
be
fearless
have the foreign
out of the 378 then listed, disappeared
Exchange.
sues,
controversy and,
heat
to
see
fit to register, and various provincial and municipal
regimes in no less than seventeen countries also neglected
the demands of the Commission.
A total of forty-three is¬
women,
to
made
were
required registration statements, and to a large
degree they were successful.
But the sovereign Govern¬
ments of Great Britain, Bolivia and El Salvador did not
the
file
without
resort
financ¬
by foreign sovereigns, to the end that listed trad¬
mation
mildly conducted, with¬
of the arts of the demagogue, without
abusiveness, without violence of criticism or recrimination,
out
substantially the ground on which Abraham Lincoln, during
his single term in Congress,
approached the problems of
will be under the direction of Dr.
Ernest M. Fisher, the Association's the Mexican War, of the origin of which he disapproved,
Director of Research in Real Es¬
namely, that when the United States is at war, its armies
tate
prospects of a resumption of private
and when the
ing in our market for foreign borrowers were good.
Some
strenuous efforts were made to obtain a modification of the
SEC demands for disclosure of intimate financial infor¬
which the voters
were
encouraged to rise above mere
such
was
an
no
as
intelligent and reasonable men
and
to support the highest welfare of their country,
election was held last week in Connecticut. There
why voters entirely satisfied with the New
leadership of President Roosevelt should not
reason
Deal and the
supported the candidate on the Democratic ticket, and
unquestionably they did. On tlqe other hand}> it is equally
plain, that those who do not believe in the inspiration of
the New DeaJ and consider some of the acts and policies of
that leadership to be seriously questionable, even during
the stress of war, were encouraged to vote for, and most
of them did vote for, the Republican candidate.
The test
have
was
unqualified, the inquest was fairly
conducted within
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4042
.Volume 155
563
electorate, the verdict is plain Editorial—'. <% V'"
essentially indisputable.
.the highly representative
and
In
1940,
as
candidate for
third term in the Presi¬
a
OsiSiiiies toilers
Pari la War Effort
Assicyxtats> Old and Mew
•
dency, Mr. Roosevelt carried only seven of the 37 towns
"You and I must be interested
in this Congressional district but they included the six hav¬
Students of history, those worthy of the name, who at¬ in victory first. All other
things
ing the greatest population and as a whole the district gave tempt to delve deeper than the superficial teachings, of must be second,", said David B.
him a total of 61,663 votes against 52,369 for Mr. Willkie. high schools and colleges, cannot fail' to discover that while Simpson, Portland, Ore., Pres¬
ident of the National Association
The Congressional candidate, Mr. Smith, ran a few votes private enterprise makes many and sometimes" very costly
of Heal Estate Boards, on Jan. 31,
•better, thari the President in nearly all the towns and re¬ errors it never insists upon persistent repetitions of the renewing in his inaugural address
On the other hand, and equally, they do not the pledge made by the Associa¬
ceived an aggregate of 62,783 votes in the district. Neither, same errors.
tion at its annual convention for
fail to find that
governments, often the same governments,
however, won a majority in any town in which the other
wholehearted
support
of
the
their personnel not
did not similarly prevail. Last week four of these seven
always completely changed, time after Government in tne war effort.
time and with
continually renewed. enthusiasm, resort to Making a strong plea for national
towns, Plymouth and Torrington in Litchfield County and
the same nostrums, fall into the same
traps of discredited unity, which he said must now be'
Naugatuck and Beacon Falls in New Haven County, went
the primary consideration in" all
economic or political
doctrine, pay the same penalties to¬
heavily Republican and together gave the Democratic can¬
the Association's
decisions,- Mr.
didate for Congress only 37.04% of their votes, as against day for the identical and egregious errors that their fathers
Simpson said realtors may well
made a short
generation or so before.
The failures of the be proud of the part that is theirs
60.48% for Mr. Smith in 1940. This change, with dimin¬
ished majorities in the other three, reduced the Democratic past having vanished from the memories of all but the to take in the war effort "in pub¬
lic
better instructed few, who are
relationships, in trade rela¬
mostly without much in¬
proportion of thq total for all of them from 61.59% in 1940
tionships, in' maintaining a pri-'
to 48.46%. Waterbury, the most, populous town in the dis¬ fluence, especially under democracy, the arguments that
vate enterprise system, and
in
trict, remained, as usual, Democratic, but it gave the Demo¬ previously led to these failures appear to popular leaders building up a future economy for
and demagogues as the
brightest of scintillating new ideas. the United States of America."
cratic candidate only 2,898 over his Republican opponent
These arguments,
Hardships that confront us may
revamped but basically unchanged be¬
instead of the plurality of 10,859 that it contributed in
be a good thing, he prophesied,
cause
they are changeless, are passed on to the masses; the
1940.
Torrington, next largest, produced, a Republican
in causing us to draw together on
exploded expedients that frequently before caused disaster a common
ground,
And,
he
plurality instead of the Democratic excess of 2,726 of the
earlier year. Ansonia, third in population, gave a meager are-again supported and undertaken; new catastrophe is added, "If our 130,000,000 people"
invited and
are united, there is no power or
inevitably appears.
39 over the Republican vote although two years before it
combination of powers who can
Nothing better illustrates this defect of popular gov¬ withstand
had supplied 1,942.
them."
The Democratic losses were pretty
-evenly distributed throughout all the towns. The district
has, altogether, among its 37 towns, seventeen in each of
which there are fewer than 1,000 registered voters. All
but one of these smaller towns was Republican in 1940,
of them went more enthusiastically Republican
Combining the results in all of them, shows that
in the aggregate, the Republican vote of 1940 exceeded the
Democratic vote by 69.64%, while in 1942 the Republican
everyone
last week.
excess
had risen to
179.42%.
The Light
;
Of
■
in
course,
the vote
Vote Not Responsible
was
light. Voting is
never as
heavy
as in those regularly held, in which
offices to be filled, more candidates actively
special elections
there
are more
ernment than the ever-recurrent resort of the
governments
Appointment
of the world to the never-successful and
always costly de¬
vice of irredeemable paper
currency—printing-press money
not representing
any metallic base, possessing no intrinsic
value of its own, not exchangeable into
anything of gen¬
uine value except at the whim
of fluctuating markets.
Not in one instance in all history has that discredited de¬
vice, unless wisdom perceived the inevitable before it ar¬
rived and interrupted-the process prior to the
complete
debacle, failed to achieve unmeasured and widely perva¬
sive injury.
Its actual result is to reduce real wages and
the prices of agricultural and other products of labor and
capital to the vanishing point, to sabotage industry and
trade, to undermine all standards of living, to bring about
tion's
industrial demoralization and
the
Associa¬
committee
for-
1942 and of chairmen of the
year
principal committees
by Mr. Simpson.
made
were
The Executive Committee is
to
be made up as follows:
John W. Galbreath,
Colum¬
bus, O., First Vice-President
(member ex-officio).
John
C.
Bowers,
Chicago,
Treasurer
of
the
Association
(ex-officio).
Philip W. Kniskern, Philadelphia, immediate past Pres-
.
i
!
ident.
y'
'■
Hobart
commercial
stagnation. Yet
repeatedly destructive expedient of govern¬
ments unintelligently controlled or directed, or betrayed
politics epidemic from coast to coast. And even the alter¬
by dread of the consequences of reckless expenditure and
nate general elections, held during the "off-years" in which
accumulating indebtedness, is never very long without il¬
Presidential - electors are not designated, are- notoriously
lustration in the practice of some supposedly enlightened
certain to produce a smaller total vote than those of the
and civilized nation.
;V %%%-;■ % ■
J:
years in which Presidential candidates are before the pub¬
John Law, 1716-1720
lic.
Wishful Democratic thinkers, and propagandist artists
■ VyV
campaigning for support, and more of the mass contagion
that invariably arises when a general election renders
of
executive
C.
Brady,
Wichita,-
Kans.
.
J. L. Hearin,
this crude and
Leland
Hills,
;
Tampa, Fla.
Reeder,
Beverly
P.
President
Calif.,
California
Real
Estate
of
the
Associa-
tion,
Stephen W. Sleeper, Boston.
A. J. Stewart, Louisville.
;
.
Heads of important committees
as follows:
are
.
employed by the New Deal, are already assigning the light
vote
as
an
excuse
for this disaster to their
cause
necticut's Fifth
Congressional District. Their argument can¬
not withstand intelligent analysis. It is specious and .essen¬
tially false. This can readily be demonstrated. Those who
offer this untenable explanation for the New Deal defeat
unanimously agree in representing that the reduced vote
was principally in the manufacturing towns that are said
to be more commonly Democratic and argue* contrary to
all facts and experience, that it is easier to get a full vote
to the polls in the rural or less densely populated regions
than in the larger towns. This is scarcely plausible at any
time, and, as applied to last weeks election it is not at all
.
in accordance with the facts.
Seven towns, as has been said,
mostly towns of large population, were carried by President
Roosevelt and former Congressman Smith in 1940. These
seven towns have, altogether, 90,116 registered voters.
All
the rest of the Congressional district has 38,980 registered
voters. Last week rather more than one-third of the 90,116
voters, actually 36.22%, in the seven towns formerly fur¬
nishing majorities favorable to President Roosevelt went
to the polls and voted either for the Republican candidate
or for the New Deal candidate/plus an almost negligible
number who supported a third candidate.
In the whole
balance of the district, with its 30 towns that are only rarely,
inclined to go to the Democrats, less than one-third
the registered voters, actually only 31.24%, went to the
if ever,
of
polls and voted for one or the other of these three can¬
If anyone who is aware of these facts, which are
didates.
easily accessible, continues to claim that the verdict against
the New Deal is a consequence of the characteristically
small vote of the special election, he is simply advancing
the
only argument that he can think of to avoid the inevi¬
table
;
implications of the truth, and one that he knows to be
entirely misleading. Sound citizenship everywhere should
be heartened by the Connecticut result and should rec¬
penalty commuted ' to imprisonment for life, escaped to
Holland and entered France, during the last decade of the
reign of Louis XIV.
That monarch, weighted down by the
excessive costs of his wars and the extravagance of his
Court, at first listened to the proposals of this financial
quack, then gave way to wiser instruction or yielded to
the bigotry of Madame de Maintenon, and refused to have
further dealings with a Protestant.
Law was expelled from
France, by the police, as a suspicious character.
But Louis
XIV died in 1715, and Law returned to beguile the Due
d'Orleans, who was Regent during the minority of Louis
XV, and to establish La Banque Generale, subsequently
La Banque Roy ale.
Operating soundly at first, its notes
redeemed upon demand in coin of the wfeight arid fineness
of the dates of issue, the bank prospered.
Its success was
assisted by the weaknesses of the official monetary system
and the absence of public confidence in the Government's
coinage, attributable to known trickeries in the mintage.
(Law's bank notes were, for a while, preferred even as a
medium of current exchange, "for they had the element of
fixity of value, which was, owing to the arbitrary mint
decrees of the Government, wanting in the coin of the
Realm:"
Gradually, however, the Bank extended its
operations and consolidated its activities with the fiscal
activities of France itself until, in all these essentials, the
Home
Builders
Emergency
representing
the
•
Committee,
whole^home building industry.
.
James
C. Downs,
Jr., Chi¬
re-appointed Chairman,.
cago,
-Committee
on
Rental
Emer¬
gency.
-
Arthur
.
W.
Bin'ns, Philadel-'
phia, re-appointed
Chairman,
Committee
on
Housing
and
Blighted Areas.
Myers Y. Cooper, Cincinnati,
re-appointed Chairman, Com¬
mittee
Real Estate Taxation.
on
(Mr. Cooper, former
•
-
of
Ohio,
the
is
National
Estate
John
tee.
Council
of
Real
Taxpayers.)
C.
Chairman
'
Governor
President also of
Bowers,
of
/A;/
Chicago,
Finance Commit¬
^
Clifford W. McKibbin, Lansing, Mich., re-appointed Chair¬
Committee
man,
on
Realtors*
Legal Rights,
Roland
R. Randall, Philadel¬
re-appointed
Chairman,
phia,
Committee
Paul E.
'
mittee
an
on
Term Realtor.
Stark, Madison, ComAmendments to Con¬
stitution and By-laws.
widely
and heavily in business through the bank, the latter the
ultimate head of French industry and'commerce, then ex¬ Name Sturtevant Chief
pending throughout America and Asia and into Africa, as
CCC Small Grains Unit
well as over Europe, partly through the offices be held
Chester D. Sturtevant has been
and partly through the political concessions he had obtained. appointed
chief
of
the
Small
Section
of
On January 5, 1720, his power and prestige were at their Grains
Commodity
Government and John Law became one, the former
"
"
(Continued
in the
on
Page 564)
Seventy-Eighth Congress, which is to be elected on
day of next November. Such- a majority cannot
fail to put an end to the abdication of legislative authority
in- favor of the Executive Department and at once to reassert
on the part of those who think clearly and act patriotically,
the commanding position of Congress as an independent
is reasonably sure to establish a safe and sensible majority and co-ordinate branch of the Federal Government.
ognize that there is abundant reason to regard the violent
turn-over in the Fifth district of that State as evidence of
a much wider sentiment which, granted effort and courage
Hugh Potter, Houston, Texas,
continuing as Chairman of the
John Law, the sophisticated Scotch gambler and duel¬
in Con¬ list, convicted and sentenced to death but with the extreme
the third
Credit
Corporation,
the
Depart¬
ment of Agriculture announced on
Jan. 27.
For over 40 years Mr..
Sturtevant
has
merchandising
engaged in grain,
and
operating
country and terminal elevators
Illinois, Iowa, Nebraska, Mis¬
in
souri
and
Wisconsin.
He
was
formerly President of the Omaha
Grain
Exchange.
THE COMMERCIAL 8c FINANCIAL CHRONICLE
564
Thursday, February 5, 1942
would not pass at all. Within Paris it
nothing, ancl steadily less every day, and
(Continued from Page 563)
a
judge of a court in the district of the Seine, who drew his
greatest height; four months later, in May, the entire fan¬ salary in assignats, died of starvation. Laws to enforce
tastic structure had collapsed, and soon he was a fugitive,
their acceptance and to fix prices were not repealed; they
driven from France; on Mar. 21, 1729, he died in Venice,
became (Leon Henderson will please note) unenforceable
alone, poor, and, for the time, forgotten.
and unenforced—-mere dead letters.
There followed
;this
paper -money
would buy almost
Following
the
announcement
from Washington on Jan. 28 that
Lewis
W.
Douglas,
President
of
the Mutual Life Insurance Co. of
,
par¬
In
1720,
was made
eral of the Finances of France.
As such,
Comptroller Gen¬ tial repudiation, a brief effort to supersede the assignats
he; controlled the by the mandats, a new irredeemable paper that had nothing
the President's special represen¬
collection of all French taxes; the issue and manipulation to recommend it
except a name not as yet discredited.
The
tative in London, oh distribution
of the "managed
currency" of that Kingdom; all its coin¬ failure of this new paper was quite as complete and much
and delivery of British and Amer¬
ican war supplies, the Mutual Life age and the relation of its printing-press money to metallic more rapid than that of the
assignats.
announced that Mr. Douglas, at money;
all the apparently great monopolies of French
The great Napoleon had then come upon the scene
the urging of the Board of Trus¬
colonization in Asia, Africa and the Americas., with all that
and he now gradually acquired autocratic powers in fiscal
tees, will continue to serve as
President of that company.
His country's exterior trade with >those continents and else¬ as well as in
foreign and military affairs. He would have
But the stock-structure of the Bank and of the in¬
assignment to war work will be where;
nothing to do with printing-press money. Despite diffi¬
for a period of six months, the
corporated monopolies of world trade, as well as its note culties
from which most statesmen would have recoiled in
company said, during which time
issues and the paper currency of the nation, had become
he will be available, in so far as
admitted defeat, he created, supported, and successfully
possible for consultation and ad¬ inextricably intermixed and confused, one with another, maintained, a metallic currency with gold coinage.
For the
vice on the company's affairs,
At and all the paper money was, in practice, irredeemable and
duration of his reign, and until after the Bourbon restor¬
the conclusion of his Government
exchangeable only into, or with, other paper. One promise ation and
Waterloo, France enjoyed the incomparable
work, he plans to assume again to
pay was therefore, in reality, only a promise to make an¬
the day-to-day administration of
benefits of a sound currency system "maintained at all
other promise of he same, or perhaps a different
quality, hazards." And
Mutual Life's operations.
though Napoleon was defeated and died! in
but after all only a paper promise—a new scrap of paper
The company also announced
exile upon St. Helena, of all the nations embroiled in the
So the bubble burst.
that, during Mr. Douglas's absence, for an old one.
Metallic money,
long Napoleonic Wars (really beginning with the Revolu¬
Mutual Life's operations will be
succumbing before the flood of printing-press money and tion in 1789 and
headed by Alexander E. Patter
continuing through the first half of 1815),
bowing |fo Gresham's irrepealable law, had been wholly- the French nation came to the
son, Who was recently appointed
period of ultimate peace in
Fortunes melted away,
Executive Vice-President of the driven out of France.
The paper the best financial condition.
v
company.
currency would buy nothing, neither in commodities nor in
Commenting on the announce¬ labor.
History's Lessons ■
Industry ceased; trade became stagnant; - poverty
ment of his Government appoint¬
and suffering stalked from the Alps
The lessons of history should condition, if they can¬
anc[ the Pyrenees to
ment, Mr. Douglas said;
the English Channel and to the Prussian frontier.
I regret greatly this interrup
Then not exclusively create, the philosophy of today.
The
tion in my work with The Mu¬
very slowly, reconstruction of the essential monetary basis United States how possesses the largest store of monetary
tual Life, but we are at war, and
of civilization began.
Over many obstacles, and despite gold the world ever saw. It is unused gold.
It is gold
our first job is to win the war.
the stupidities and selfishness of two dull kings and their robbed of
every function, sterilized as money, sterilized as
Moreover, I undertake this War
governments, the bare minimum of an efficient fiscal sys¬ a commodity potentially useful in the arts,
work confident that the com¬
At the same
pany's affairs will be most capa- tem was re-created under Louis XV and feebly continued time the circulating medium of the United States consists
bly directed in my absence by
of the largest volume of substantially irredeemable paper
under:.Louis; XVI.
•/ Mr.
Patterson, and his fellow
money that has ever anywhere existed. ;
We draw, at
From Jacques Necker to Napoleon Bonaparte
officers, whose experience and
abilities
qualify
them
thorCame then the vast extravagances of a Weak and present, no conclusion from these parallel and contempo¬
oughly for the task.
raneous facts.
Historians of the future will not overlook
fated sovereign and his frivolous and tragic Queen, an
Mr. Douglas is expected to go
them.
It may be necessary, in these pages, hereafter to
to Washington shortly to make a
empty national treasury, a desperate and frenzied Revolu¬
revert to them and to seek to find some catalyst sufficing
study of British and American tion, all the essentials of
sovereignty in inexperienced for their union and correlation.
war supplies and production. Fol¬
hands, attempted repudiation of everything past with all
lowing this survey, he will divide
its lessons and its traditions.
The Constituent Assembly
his time alternately between Lon¬
had confiscated the vast properties of the churches of
don and Washington.
Mr. Douglas has been President France and seized those of the Crown.
Money for the civil
of The Mutual Life of New York
and military expenses of the Government, nominally still
(Continued from First Page)
since Jan. 1, 1940.
Prior to that
of the King but really of the Assembly, was urgently re¬
date he was Principal and.Viceenough that the American President fully expected to play
Chancellor.. of McGill University quired and Jacques Necker, once a banker, was the chief a leading role when the time came to talk peace.
at Montreal.
He served as U. S. fiscal officer.
Since Pearl Harbor we have been frankly and fully at
By no means an intellectual giant, but with
Budget Director from March, 1933, a
superficial knowledge of financial history and doctrines, war "in every part of the world," and by virtue of that fact
to August, 1934, and from 1927 to
he thought he could improve upon Law's scheme and obtain
1933
was
Congressman-at-large
fully entitled to a place, and an influential place, at the
its convenient advantages without incurring the worst of
for the State of Arizona.
peace table whenever the peace makers foregather. Rarely,
its evils—or at least without falling beneath their impon¬ if
ever, since December 7, 1941, has the President spoken
derable weight.
Kansas City
What he did was to issue the equivalent of winning the war without at the same time adding an
Reserve
Bank 1941 Net Down in livres of some $77,200,000, in Government notes of the equally emphatic expression of determination to "win the
H. G. Leedy, President of the denomination of 1,000 livres ($193.00) each, called "Assigpeace." Now, of course, the term "winning the peace" is
Kansas
These notes, in their earliest form; carried interest one of those
City
Federal
Reserve nats,"
tricky phrases or "slogans" so beloved by the
Bank, announced on Jan. 16 that at the rate of five
percent annually, they were not intended American people, which standing by itself could mean
the net earnings of the bank in
to circulate as money but to be accepted for discount at the
almost anything or nothing. In the existing circumstances,
1941 amounted to $331,571, com-r
pared with $983,063 in 1940, Cur¬ Caisse d'Escomte; and each, as the name suggests, repre*
however, one can scarcely stand long in doubt of what in
rent earnings for the year just sented the assignment of a fractional interest in the seized
general terms is meant by the phrase when used by the
ended totaled $2,082,480, against and
confiscated lands.
These issues were provided for by President and his close
followers, even if details are of
$2,159,676 in 1940, while total
decrees of Dec. 19 and 21, 1790.
Before four months had
net expenses in 1941 were $1,816,necessity as yet lacking, In New Deal, and for that matter
976, against $1,747,994.
This re¬ elapsed, by a decree of April 17, 1790, the rate of interest in a good many other circles, the idea, if not the term itself
sulted in current
net earnings was cut to three percent, denominations as low as $38.60
appears to have its roots in what happened when what is
for 1941 of $265,504 as compared
(reduced further to $9.65 on Oct. .8, 1790) were provided now known as World War I came to an end. It is
commonly
with $411,682 in 1940.
After ad¬
for, and the quality of legal tender had been conceded. said that we won that war but "lost the
ditions and deductions, net earn¬
peace"; and more
The debacle was already in progress,
In September, of of the same order.
ings stood at $331,571, as against
$983,063 in 1940.
Of this total, the same year, the interest-bearing quality was eliminated
The Last Peace
$332,072 was available for divi¬ and at the beginning of 1792 the
largest denominations were
dends and reserves.
The divi¬
So much has been said about the inability of President
exchanged for smaller denominations, some of this print¬
dends to member banks aggre¬
Wilson to bring Lloyd George and Clemenceau around to
gated $271,913, and $60,159 was ing-press money then provided for being in denominations
transferred to reserves for con¬ as low as 10 sous (965-1000ths of an American cent).
The his way of thinking, or to persuade them to do as he wished,
tingencies through surplus.
flood emerging from the presses swelled rapidly in volume. that a
great many men and women in this country appear
By Sept, 22, 1792, almost $386,000,000 of this paper was in to have forgotten that he likewise failed to convince ■ the
New S. Wales Tenders
circulation; by May 1, 1794, the total was $1,136,963,000; majority of the American people of the correctness of his
Holders of external 30-year 5%
by Jan. 1, 1796, it was, $5,308,465,000; by Sept. 7, 1796 position or to persuade them to confirm his actions in Ver¬
sinking fund gold bonds, due Feb.
(when the bubble burst and counting had substantially sailles. Often it appears that the consequences of the Treaty
1, 1957 of the State of New South
Whles, Australia, are being invited stopped), the nominal aggregate had reached $8,796,747,000. of Versailles are traced to failure to enforce provisions
by The Chase National Bank of
which President Wilson had hoped would presently be
Meanwhile, the upward rush of prices had been a domi¬
tne City of New York to submit
eliminated from the Treaty at the same time that they are
nating factor in the cruel struggle in which the Jacobin fac¬
tenders to the bank for the sale
tion destroyed the Girondins and sent many of their ablest also laid to the inclusion of such provisions in the first place.
to it of an amount of these bonds
sufficient to exhaust the sum of men to the
guillotine. They had exhausted the capacities of Over-riding it all there is the feeling in many quarters that
$214,723.17 which is now held in heartless laws and brutal
penalties, even the penalty of our refusal to join and in large part manage the League
New York, has been appointed to
with W. Averell Harriman,
work
on
January 5, he
;
.
'
.
*
;
the
sinking
fund.
Prices,
it
is
death, jn trying to add functions of value to paper that had
value whatsoever.
Purchasing power of the fiat cur¬
rency fell with increasing rapidity until none remained
By December,' 1795, 100 paper livres (nominally $19.30) in
Corporate Trust Department of
assignats would exchange for only 52 centimes, or a small
the Bank, 11 Broad Street, New
fraction over 10 American cents, in coin.
York.
Outside of Paris
stated, must not exceed par and
accrued
interest,
and
tenders
should be submitted
before 12
o'clock noon on Feb. 9,1942 to the
no
THE FINANCIAL SITUATION
of Nations
was
a
cardinal sin which leaves
us
but
little
right to criticize. The fact is, of course, that while Wilson
strongly disapproved some of the unfortunate provisions of
the Treaty, there were others since clearly demonstrated
to be quite untenable which were largely of his own
devising.
%
Volume 155
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4042
565
The immediate strategy of the current "winning-theSimilarly, of course, with the ideas which appear from
time to time of
placing the hungry peoples of the over-ridden
peace" campaign appears at present at least to be directed
at the objectives of out-maneuvering any Lloyd George's countries of Europe under our thumb by dangling large
food and other supplies before their eyes at the conclusion
or Qlemenceau's who may be in attendance when the next
world peace treaty is written, and to prepare the ground at of the war—supplies which, if we are to take the words of
home so that next time the American people will not reject some Washington officials literally, may be offered gratis
what is done.
The fundamental Wilsonian notion of a in the hope that in this way we may be able to win support
unified management and direction of world politics appears for some plan of ours to make the world over more to our
to be accepted as a basic premise whose wisdom may be liking.
Even the people of Britain may well by that time
assumed without argument. At least there is not the slightest be in need of a good many" things—the people of Britain
who can, if they wish, control
any Lloyd George who may be
disposition shown among the articulate proponents of such
ideas even so much a? to admit that there is a debatable at the peace table, a fact the Washington authorities can be
issue here, aW those from whom one might expect a counted upon not to have overlooked. Who in light of the
! challenge appear to be largely silenced by the strange but events of the past eight years can feel any assurance that
such fantastic ideas, or such
incredibly expensive plans or
apparently popular notion that recent events have proved
the exponents of a policy of attending to our own business programs, are beyond the imagination or even the accep¬
to be wholly wrong-Estrange because certainly we have tance of those now in charge of our foreign policies.
given no such policy even a pretense of a trial.
•
:
Other Costs
;
The technique of this campaign to "win the peace'- is
These are, however, but some of the direct costs of
familiar enough to all who have observed the New Heal
"winning the peace" as that process appears to be en¬
strategists in action. At home it consists largely of iteration
visaged in official circles.
There are many other neces¬
and constant reiteration of persuasive catch phrases, of.
sary and possibly even greater costs.
Practically every
•whichwinning the peace" is but one. The much publicized discussion of the
post-war world begins or ends, Or has
"four freedoms" is another. Emphatic assertions that we
lying implicit in it, the conception of a world dominated
must see to it that the peace of the world can never be again
by the United States and the British Empire—the so-called
breached with all the horrors of war is a companion piece.
English speaking world. These two powers are, apparently,
So are the frequent allusions to people who have lost their
to remain
sufficiently armed and in a position to prevent
freedom, and the charge, nowhete in any way demonstrated, the rise of
any power to a point where it could threaten the
1 that one of the primary objectives of all our enemies has
peace of the world by acts of aggression.
According to the
Jong been the conquest of the United States—a fact we are idealists they would control the globe not for their own
abjured never to forget when the affairs of the world are immediate benefit, but as a sort of trustee of
peace and
being arranged after the war.
,
' justice. Incredible? Ordinarily it certainly would be be¬
Similar methods are employed to influence foreign
yond belief, but the fact remains that the notion finds
peoples, but it is here that we also find the familiar tactics practically full and frank expression in the Atlantic Char¬
of buying support being steadily developed, and it is in ter and in a number of
other public utterances in recent
.this phase of the campaign that we even now are beginning
months, and, what is more, without doubt has support in
to be given an inkling of what the first costs of the pro¬
quarters which one would normally expect to be far too
gram are likely to be. Lease-lend is obviously furnishing ■wise, to accept .-such ideas.
:
■
a
case
in point.
This unprecedented arrangement was
This concept of a modernized Roman peace was, of
fostered by the President and supported by the American
course, formulated when Russia was playing a role dras¬
people as a device through which to defend ourselves from
tically different from the one she now plays. That coun¬
"aggressors" then on the march and allegedly then design-'
try by implication at least appears now to be accepted as
Ing our downfall. Originally it was to be one of those "short- one of the
democracies, or at all events one of the defend¬
of-war" measures which would help us to defeat certain
ers of
liberty,: however difficult the mental gymnastics re¬
•"enemies" without having ourselves to fight and beat'
quired to accomplish such a feat. The notion of a world
them. At any rate, it was designed as a means of winning
dominated and ruled by the English speaking peoples, will,
the war, and not the peaces
Those who have taken the
obviously, have now to be modified or adapted to the, al¬
trouble to keep informed, so far as it is possible to do so,
tered situation.
This task will in all probability entail
about the administration of the, scheme have often had
gifts that, far transcend mere phrase making. • Russia,
occasion to marvel at the liberality with which the intent
whether or not she finally proves the undoing of Mr. Hitler
and purpose of the Act were interpreted, and to grow;
and his Germany, but more particularly if she does accom¬
rather more than uneasy about the free-handed way in which
plish that feat, is very likely to have ideas about post-war
we are casting our bread upon many waters in the appar¬
Europe vastly different from those in the White House. It
ently vague hope that it will return to us after many days is not inconceivable that soon or late that titanic land will
in the form Of protection igainst our enemies.'It is safe to
prove to be a very considerable thorn in the' side of the
say that the world has naver seen such profligate employ- British
Empire whose continued Existence and safety we
ment of the'old, old method of trying to buy political sup¬
appear to have underwritten. Without any doubt she will
port—everywhere in the world.
be a post-war force to be reckoned with.
.
•
.
v
#
Lease-Lend and the Peace
But he would be naive indeed who
this is
supposed that all
being done with an eye single to the defeat of Ger-:
many, Italy and Japan. It is doubtful if even a full fledged
apostle of the modern gospel of profligacy for its own sake
■could be always free of doubt of the wisdom of some; of
these gifts—for that is what they are—if appraised solely
as a type of war expenditure, and in full consideration of
the financial burdens the war is of necessity otherwise lay-;
But that
war
Savings Banks
Made Many More
Mortgage Loans
Mortgage loans made by the
savings banks in New York State
in
1941
28%
costly it would be to rule the world, or to protect it from
aggression from every quarter.
For one thing it is now
plain as a pikestaff that whatever we may one day find
it advisable to do to Japan—assuming of course, that we
are in a position to do what we think wise—to render her
innocuous, we can never be certain that she will stay in
that state without more bases far more strongly held in
.
v
showed
increase
an
of
the previous year ac¬
cording to figures released on Jan.
over
30 by. the Savings Banks Associa¬
tion of the State of New York. The
total of new loans
was 25,871 as
compared with 20,141 in 1940. The
aggregate dollar amount of these
loans
$209,914,000
was
pared
with
previous
as
$191,840,000
The
year.
com^
in
the
statistics
gathered, it is pointed out, indi¬
cated increased lending activity
during each quarter of the year,"
particularly in placing mortgages
small homes and
on
dences.
The"
amount of
$8,114
new
private resi¬
dollar
average
loans in 1941
was
compared with $9,520
during the previous year, Straight
Savings bank mortgages continued
the
new
as
most
popular.
9,861
of the
loans for $99,148,000 were of
this type.
crease
of
There Was also an in¬
FHA mortgages with
7,041 for $34,676,000, as
com¬
pared with 6,461 in the previous
year,
The balance was made up
of 7,766 purchase money mort¬
gages for $68,805,000, representing
mortgages taken back on the sale
of real estate; and 1,203 additional
loans for
$7,284,000 oh mortgages
already held.
6,838 loans for $58,473,000 were
made in the last quarter of the
year/ it is pointed out, with prac¬
tically all of the loans made at
rates of 5% or less.
The report
stated:
banks
traditionally
a
major factor in
financing home ownership and
Savings
have
in
been
recent
years
have
succes¬
sively reported increasing
bers
of
loans,
new
num¬
However,
due to the war situation and the
priorities
necessary
on
building,
it is anticipated that the financ¬
ing
of
defense
housing units
large extent, super¬
cede the financing of individu¬
ally owned private homes.
In
anticipation of this, the savings
banks have recently taken steps
to
form
building
companies
will, to
which
a
construct and
can
defense
age
where
areas
housing
man¬
in
the
it is needed.
CCC To Sell Wheat
For Alcohol
The
ture
Department
.
announced
of
Output
Agricul-r
oil Jan.
27 that
Credit Corpora¬
tion was prepared to sell
wheat,
in place of corn, for the produc¬
tion of ethyl alcohol,
acetone, and
the.
Commodity
problem entirely aside, a few weeks of actual
have demonstrated, if demonstration was needed, how butyl
ing upon the backs of the people of this country. The the far Pacific than we have ever had. Nor would we rest
^thoughtful observer can not escape the conclusion without without maintaining naval and air forces easily capable of
;more ado that "winning the peace" is not infrequently: in making our commands in the future respected.
Nor does
the mind of the Administration when some at least of these that; mean merely the maintenance of large forces.
It im¬
grants are made. •; .;'j plies as experience now clearly demonstrates constant at¬
But lease-lend - is by no means the full story.
Discusi tention to the ^development; of improved mechanisms of
isions which have centered about the recent conferences in! war/ " We'could ^ never afford to make the mistake that
Bio de Janeiro must certainly not 'be left- out:- of considera-j France made in supposing that the art of making war will
i tion.
None: of the grandiose schemes brought forward has stand still- while science and industry forge ahead.
But the
ias yet crystallized into: definite; programs of action, so fait as case of- Japan is - but an example.
Certainly if experience
'known, but there is no reason to doubt, that they; or some! teaches anything we could not, if we are to play the role
'similar schemes, will be developed in good season—arid,; to which we are assigning ourselves, leave Europe- wholly
►of course, in these times no one can say what is even now? to our partner in this world; enterprise.
And what of In¬
dia and • the many other members of the British Empire
going on behind the scenes.; Such currency stabilization
After all, the Japanese
schemes and "loans" as have been under discussion could populated by utterly alien folk?
'of themselves cost us a pretty penny, and if, as one cab constitute but a small percentage of all the people in that
distant part of the world.
What if presently some of the
.scarcely fail to suspect, the powers that be in this country:
are
harboring ideas of permanently "weaning" Latin- others launch a; program of "Asia for the Asiatics?"
i
NY
alcohol.
states: •;
:
Under
Credit
wheat
The
•
Department
■
this plan Commodity
Corporation will
sell
at
91
delivered
to
cents
per
bushel
of the
A lower sales
processors
above products.
price will be made to processors
with unusually high conversion
costs, but no sales of wheat will
be made at less
per bushel.
On Jan. 15,
than 80
cents
1942, the Depart¬
ment announced the plan of sell¬
ing corn for the production of
ethyl alcohol. Contracts are now
being executed under the plan
for the period ending March 31,
1942.
At
that time it may be
to limit sales solely to
wheat for the production of ethyl
,
necessary
alcohol.
The revised program,
it
is. explained, will materially re¬
duce the quantity of corn needed
for ethyl alcohol.
Payment On Finnish 6's
Holders
of
the
Republic
of
Finland 22-year 6% external loan
sinking
fund
gold
bonds
due
1, 1945, &re being notified
that $247,000 principal amount of
Sept.
The story might be lengthened almost without limit, these bonds have been drawn
this country, that is con¬
by
verting a trade which responds to perfectly natural economic but enough has been said to suggest some of the problems lot for redemption at par and
accrued interest on March 1,1942.
forces into one which somehow is made to flow up-hill to of "winning the peace" as those words appear now to be
The bonds will be redeemed at
or through the United States—well, there is simplymo way
interpreted. The more the matter is studied the more the head office of the National
-of estimating the costs that will be entailed in an endeavor one must feel that the American people would be wise to City Bank of New York, 55 Wall
Street, New York.
which must of necessity ultimately end in failure.
study it before this movement gains more momentum.
American trade from Europe1 to
-
566
THE COMMERCIAL
J
FINANCIAL CHRONICLE
&
Thursday, February 5, 1942
of., us-i-the
,
"
business
consumer—are
'
'
In
American
announced
roads
Institute
Steel
&
iron
Describing the act
Rail-
American
of
Association
for the week, the
ingots
■
...
.
of
tons
Tnis portant
recently.
weapon
"an
as
in
our
by
armory,
increase
The
Week
the
or
years ago
at 52.8%.
first week in January
a
over
year ago was,
-
the
same
107,052 cars,
15.1%, primarily as a result of
sharp gain in miscellaneous
freight and grain and grain prod¬
ucts.
The improvement over the
same week in
1940 amounted to
the
production was at 98.4%, equivato 1,592,700 tons.
lent
Complete curtailment of auto¬
production next month
coupled with temporary disloca¬
mobile
167,617 cars or 25.8%'.
production
is likely to be offset by gains in during the week ended Jan. 24th
produciion in other lines so that amounted to 3,440,163,000 kilowatt
general industrial activity is not hours, a decline of three tenths of
1% from the previous week, the
lately to suffer.
in
tions
.
.
will
tion
level
peak. Producmaintained at this
new
a
be
least
at
the
over
next few
months, Competent observers be¬
lieve.
the
During
spring,
production
rise sharply since many new
may
plants begun last fall 'are sched¬
uled to go into operation at that
The index may rise to 175
before the first half is over, ob-
time.
"
believe, and a peak of
this year would not surprise
showed, compared with a gain for
Advance
stapled
consumers,
ous
jurisdictional
of
strife
and
-how
it
on
a
to
accomplishes
fair return" but at tne
a
time
that
warned
same
feel
,
when
trends
now
believe John L. Lewis will remain
with
CIO
the
rebuff
despite his recent
hands
of Philip
the
at
the executive com¬
Lewis, however, is in a
strategic position to create diffi¬
and
Murray
CIO
the
for
by
This would match the previ¬
peak established in August of
to
collisions
Price
The
nation's
straight
In the previ¬
24th, the
the increase
Henderson,
Jan.
bank, had reported
this group of stores, at
the
corresponding
of
24%
1941
above
week.
Increased
by retailers
over the "multiple" or rush buying by their customers is leading
to individual measures which may
result
in
been
some
Which
at
pace
concern
slackening of .the
consumers
have
stocking
up.
Sales, gains
consequently may
be slightly narrower this month
than they were in January.
v
last
over
•
Price
trol
customers.
The
of Commerce
Department
estimates
•
,
that
.
■
V
/
;■
•' ;
To make price and rent con¬
trol effective the administrator
is
given adequate powers tc
license persons subject to the
will
investigate and enjoin
■'.attempted violations, and to
bring about the commencement
of criminal proceedings against
act,
joint statement did not dis¬
how
high they planned to
let farm prices go, but Mr Wiz¬
ard
provided a clew Saturday
when he told the Senate Agri¬
culture
Committee
he
thought
"around parity" would be about
right.
to
Civil suits for treble
violators.
damages
by private persons,
provide an additional, enforce¬
ment
But
must
a
fall
price control measure
far short
of being a
with
consumers
with
our
be inconsistent
price-control
present
efforts.
tention
the
to
fact
that
I
am.
requesting the departments oi
the government possessing com¬
modities to; make such
com¬
modities available to other de¬
partments in order to aid
war
effort.
our
This
stocks of the
request, pri¬
affect the cotton
Commodity Credit
Corporation
and
marily,
such
will
stocks
,
will
be
to
permit
utilized, di¬
rectly or by exchange, in the
production of war goods.
Such
transfers will be in addition to
the quantities which are how
,
increase of
with
compared
More
than
tacular
last
a
than 15%
more
a'
year*
tHrd
of
as
earlier.
this
spec¬
expansion in inventories
is attributed to higher
year
prices,
and
creased
the
phv-'cal
coal
a
Credit
Corporation, representing
102,587,845 bushels of 1940 corn
and
1938-39
resealed : corn,
were
the
in¬
quantities
of
in
Repayments were made
210,535
bushels
pledged
to
substantial- dron
traffic, material increases in
cars
of
revenue
freight,
the1
before issuing price regulations,
and must accompany each such
61,under
on
statement of the
considerations upon which it is
regulation by
'oan in 1938-39 and resealed under
miscellaneous freight end forest farm
storage, and on *1,37.7,283
products carlondings for the w°ek bushels of 1940 corn. There reerded Jan. 24t.h, amounts1 +o 8.17,- ■ maired outstard'^e a total of 161.804
*
repaid from Jan. 1, 1941 through
Jan. 10, 1942.
rest
goods in stock.
Despite
culture-reported on Jan. 21 that
97,111 loans made by Commodity
203
loans
cn
186,954,806 bushels.
safeguards
against
ill-consid¬
ered or arbitrary action.
This,
act, while granting the admin¬
istrator broad powers, imposes
upon
him a responsibility of
equal breadth for fair plhy. He
must, so far as is practicable
consult with industry members
a
based.
The
'
grain
and
may
other commodities
be needed by the
departments concerned. The en¬
actment
of
price control legis¬
assure
does
wisdom
tain
tion. Persons adversely affected
not
and
amendments
that
mean
adequacy
sections
of
to
the
of
necessary as we
cer¬
the responsibilities which
been placed upon them
the
end
that
labor disputes
peacefully,
fairly
and
finally
be settled,
and that
maximum war production may
may
continue- without
until victory is
On
the
26
Jan.
interruption
achieved..
President
ap¬
24 associate members of
the War Labor Board, authorizing
pointed
them
to
act
as
mediators in any
disputes under the Board's
direction.
The Board, which is
labor
headed by
created
on
William H. Davis, was
Jan. 12 (see issue of
Jan. 15, page 242).
The
associates, named
Department;
Frank
Tobih,
Washington representative of
move
become'
ahead.
Moreover, price control legis¬
combat
inflation.
rymple, President of the United
Rubber workers of America,
James Carey,
CIO Secretary;
Director of the
CIO Industrial Unions Counsels;
Mrs. Anna Rosenberg, Regional
John
To
do
that,
adequate fax and fiscal pro¬
gram, a broad savings program,
sound
-and'an
production
effective
University of California at Los
Angeles; Dean Lloyd Garrison,
University of Wisconsin Law
School; Prof. Fowler V. Harper,
University of Indiana.
North Carolina Supreme Court;
Prof. I. L. Scharfman,
Gray, Secretary, International
Bricklayers, Mason and Plaster¬
ers
Union; William W. Way-
J.
mack, editor, Des Moines "Reg¬
ister
and
Tribune";
Cyrus
_
of
Vice-President
U. S. Rubber Co.;
the
John E. Con-
rolly, New York; H. L. Derby,
New. York; T: R. Jones, Presi¬
dent, Arrterican Type Founders;
Inc.
Dale Purves, Treasurer, John
B.
Stetson
Co.;
F,
S.
Fales,
Standard Oil Co. of New York;
priorities and
Rolland J. Hamilton, Secretary-
program,
are
all
Treasurer,
and
Finally, all bulwarks againri
must
University
Michigan; Ralph T. Seward
of Washington, D. C.; Richard
of
program,
needed.
inflation
Brophy,
Director, Social Security Board,
New
York; Prof. Paul Dodd,
an
a
Union;
Lyons, Massachusetts
State CIO Director; S. II, Dal-
Hugh
and! ,-Ching,
act,
it may
the
lation alone cannot successfully
rationing
provisions for adjustment
flexibility in administra¬
ity
have
to
Chief Justice Walter P. Stacy,
The request will also include
battle against inflation has been
won.
I have doubts as to the
Repayments
War
the
of
members
1942, hereby resolves to dis¬
charge to tne best of their abil¬
av^HabTe for sale.
lation
Corn Loan
The
Labor Board assembled for the
International Teamsters
I also should like to call at¬
:
to surround the individual with
The U, S. Department of Agri¬
mitted to the President read:
authority
democratic instrument if it fails
of
to
be
to
in an
of this Executive order, were:
corporation would greatly in¬
John
F, Uuneo,
President,
crease its losses,
nullify the ef¬
Cuneo Press of Chicago; Joseph
fectiveness
of
existing
pro¬
McDonough,
Secretary-Treas¬
grams, and by breaking faith
urer
A. F. of L. Metal Trades
the:
restrict
which
tool.
ever-nor¬
protect farmers
against surpluses and consum¬
ers
against sacrit; and that tc
It
■.
■
an
mal granary, to
equitably distributed J
der to obtain the maximum pro-
'duction'.'"...-'
maintain
sible to
ever
in all, is a
accomplishes
the fundamental objectives of
setting up a single administra¬
tor and. empowering him to es¬
tablish
maximum
prices
and
rents over a broad field, to pro¬
hibit
related
speculative and
manipulative practices, and tc
buy and sell commodities in or¬
products.
Administrator
Credit 'Corporation
should
be free to dispose ol
j commodities acquired under its
programs in an orderly manner,
for otherwise it will be impos¬
Commodity
ships, tanks, planes
Effective price con¬
one.
thi
and
I further pointed out that the
;
will insure that these sac
are
of
commerce.;C;, ■<:.;>:■
The total
an
from
trade
stocks
channels
normal
become the
as
associate members, soon
appointed.
At its initial
meeting tne Board also decided
against the appointment, at this
time, of "umpires": to handle labor
disputes.
Wendell L. Wiilkie,
James
A.
Farley,
Alfred
E.
task
board's first meeting on Jan. 16,
!
message
manufacturers, whole¬
salers
and
retailers 'aggregated
S27,000,000,900 at the end of 1S41,
an
in
The
us
oi
the
.hands
inventories
.
of
conduct
operations.
my
ment-owned
victory means,
increasing sacrifices
of
workable
reciprocate by bearing down on
the prices of things farmers buy,
close
the:
better serve
our enemies
we. should
normal
the
to the Con¬
gress on Aug. 25, 1941, disap¬
proving the bill H. R. 5300, 1
pointed out the extreme disad¬
vantages of any action designed
to peg prices through the arbi¬
trary withholding,. oi govern¬
The act, taken all
■
Marty retailers who regard the
.stock-up buying as unhealthy, are
suspending the usual February
promotions and even substituting
rationing systems of their own
in an effort to
protect regular
(taction
rifices
cotton "to supple¬
livestock
could
of
and guns.
private stocks" and will
kecp feed prices at levels which
will encourage production of meat
The
fair
agricultural commodi¬
in
In
/
larger portion of our goods and
our labor is devoted to the pro--.
ment
and
of
of
their
that
■.
course,
from each
The Department of Agriculture
will use Government owned stocks
year
a
produc¬
v': :■»' :/■/.
ties
s-,
of
as
grains and
increasing
.
•
victims of inflation.
permit.:
Leon
Administrator,
md
Secretary
of
Agriculture
Wickard disclosed they were in
"complete agreement" that the
cost of living should be stabilized.
of
:
effort needed for
Price
ended
week
give farmers
for
giving my approval to this
legislation I am acting with the
understanding,
confirmed
by
Congressional 1 e a d e r s, that
there
is
nothing
contained Smith, Charles Evans Hughes and
therein which can be construed others of national prominence bad
been suggested as possible "um¬
as a limitation upon the exist¬
-.V/ing ' powers
of governmental pires/',
The Board's resolution trans¬
agencies, such as tne Commodi¬
executive,
text
the
purposes
than that
will
ous
•>%;
.Nothing
th e
products has gone about
the Agriculture Depart¬
ment and the Office of Price Ad¬
eral Reserve Bank.
'
ers.
heard
ministration
realize
In
/
,
Emergency Price Control
Act; of 1942 is
an
important
weapon in our armory against
the onslaught of the Axis pow¬
headquarters, this
from
to
as
tion.
The
'or their
far
level
been
since
;
President's statement:
unions
farmers
is
Following
week that the boom in the market
as
.
head of the Office of
as
Administration
agency was created by
order in April, 1941.
pressing
with
farmers
ty Credit Corporation, to make
already in the field.
-v
,,•.;;
lead
to
that most
sales
has
Board resolved itself to settle war
is abundant produciion. diation or voluntary arbitration ."
And I hope agricultural prices The Board will not participate in
cam be maintained at such a mediation but will delegate that
administrator of tne
Henderson
Labor
But i industry-labor
the Senate the nomination of Leon
mittee.
culties
fair return.
a
or
Henderson
Mr.
War
course,
•.
On Feb. 2 the President sent to
act.
National
new
to
disputes "peace¬
fully, fairly and finally." Tne 12that when farm prices go much man Board decided that, for the
above parity, danger is ahead. present, it will act only for the
One of the best ways of avoid¬ "final determination" of disputes
ing excessive jfriee rises, of which "cannot be settled by me¬
parity
return
as
The
Tfie
required
;
established
serving
labor
of
Students
appeals.-
is
prevent farmers receiving
act to
objectives.
With respect to the farm sec¬
tions, the President said that
"there is nothing in the act. to
prevent farmers receiving parity
or
New War Labor Board
.....
that
all,, is
went
I;
,
its iunaamental
CIO.
Department store sales in New
York City last week rose 21%
over the comparative 1941
week;
according to a preliminary esti¬
mate made recently by the Fed¬
.
in
efficiency is the spontaneous
cooperation of a free people." r
Board, at its first meeting on Jan.
transmit quarterly progress re¬ 16, pledged to President Roose¬
ports to the Congress.
•
// velt its full responsibility for as¬
The farm program which has suring maximum war production
been developed since 1933 has "without intert uption until victory
set parity prices ana income as is
achieved."
Iri
a
resolution
a goal.
There is nothing in this transmitted to the President, the
%
threatening to break out be¬
cause
of dissension, within the
extent
some,
goods
dry
.last year.
.
stated
all
one"
enumerate
organization -drives through his
/District 50" of the United Mine
would run close to 40% ahead of
Workers, observers state.
last year.
The percentage gain
This subsidiary union is now
is not likely to be this high, how¬
ever.
Tne adjusted Federal Re-* seeking, to organize employees in
a wide number of fields including
serve Board index of department
chemicals and petroleum.
These
store sales therefore will approxi-;
efforts, observers fear, are likely
mate 134% of the 1923-1925 aver¬
age.
:
to
lines to
processea foods, into canned fruits
and vegetables and similar lines.
Spurred by the disclosure that
sugar will be rationed, the buying has now reached considerable
proportions.
">
b
It has been anticipated that department store sales for January
.
,
buying by
shifted
now
.from
.
also
taken
act,
workable
The second is the the ever present
menace
has
„
/ tne
He
court .oi
gency
mentioned last week, the
we
now
.some.
,
inflation."
Mr.:
Roosevelt
concluded
by
stating that, in addition to price
control legislation, it was neces¬
labor situation is becoming more
and
more
threatening.
It
is sary to have "an adequate tax
and fiscal program, a broad. savpointed out that the relatively
stable current industrial relations ings program, a sound production
situation is threatened from two program and an effective prior¬
directions.
Prospective demands ities and rationing program" to.
for higher wages are; one threat successfully combat inflation.
As
190
,
earlier of 14.5%.
week
the
servers
,
we
of
a speedy and
in the emer¬
remedy
administrator
prices
above
parity,
danger
is
Tne adjusted Federal Reserve Edison Electric Institute reports. "go
The new
law permits
Board index of industrial produc¬ The improvement over the cor¬ ahead."
farm prices to rise to 110% of
tion rose to 168% of the 1935- responding
week
a
year
ago
14.8%, the report parity, before ceilings could be
1939 average during December, amounted to
to achieve
.
Total electric power
industries
civilian
other
of our enemies than that
should become the victims of
purposes
order have
an
effective
represents a
three
For
'
Produc¬
96.9%, two years ago at 71.7%
at
'and
.
week.
tnis
last analysis, as "WoodWilson said, "The best form
tne
row
im-$>.
contra-seasonal im¬ against the onslaught of the-Axis
tion last week was 1,607,600 tons, provement of 6,608 cars or 0.8% powers," the President said that
"nothing could better serve the
or 07.3%.
>
A year ago output was over the previous week. \
announced
the
and the
determined to
make'those bulwarks hold fast.
-
EBusiness activity shows little or no abatement, with many of
the leading industries more than holding their recent high levels.
;
In signing the Emergency, Price Control Act. on Jan, 30, Presi¬
Sharp gains in merchandise loadings and crude runs-to-stills were' dent Roosevelt issued a statement declaring that enactment of the
registered this week, with electric power production continuing legislation "does not mean that the battle against inflation has been
to show substantial gains compared with, last year.
Steel production won'* and expressing, "doubts as to the wisdom and adequacy of
certain sections of the act./
He added that amendments to /the law
in the United States is scheduled this week at 97.7% of capacity,
"may become necessary as we move ahead."
indicating output of 1,614,200 nets'. ...» 1
*T
'■ ■
■
man,
farmer,
tne
worker,
fail,
unless
all
American
Stsnd^rd
•
Radiator
Sanitary
Corp.,
Hewitt, editor, "Ma¬
chinist's Monthly Journal."
and
Fred
.Volume 155
THE COMMERCIAL
Number 4042
& FINANCIAL CHRONICLE
567
time.
Some
have
already
ar¬
Civilian*
rived and
'■
Springs, W. Va., or Hot Springs,
Va., where the German, Italian,
tasisipta At iepressisii Levels ,t
Sean % Flail Industrial * Conferenee Beard
made
public
under
This
is
no
consumption
nation
in
war
than
more
the
after
1933,
this
,
In
1933
:btain
a
•.
living.
living
depression standard
Since then the cost
has
♦25%.
increased
this
in
Harbor
As
y
other
reduction,
power
than
more
000,000,000.
sharply, according to this
study, that the total flow of new
services
and
consumers
hands of
though
it
will
-health
efficiency
of
changed
;
be
the
maintain
adequate
ers'
taxes
and
tributive
for
structure
goods.'
.y:
• •
worker
is
estimated
■
adequate diet at minimum cost,
sees
movie
a
has
week, and
a
savings other
no
insurance.
The
life
than
national
would
than
be
only
this
-While
slightly
maintenance
nationwide
a
transition
a maintenance budget is held
unlikely, the Board's study in¬
to
that
dicates
which
the
have
optional items
been
increasingly
present in the American standard of living will disappear for
:
the
duration.
dence
wartime
to
stark
a
evi¬
no
however,
that
must be
consumption
reduced
basis,
There is
yet,
as
subsistence
.
The Threat of Inflation
Consumers in the coming fis¬
cal
it
year,
estimated,
is
will
have about $2 purchasing power
for
of
$1
every
civilian
and services available.
this
will
increase
income
and
goods
Most of
continue
which
groups
The rate of
said,
to
in
by
same
time
that
12%
war
include
Under
the
war
national
would
ranve
policy in
as
Interest
and
discount earned, and
Commissions,' service
would
of
Of the
the
Earned
surplus,
Earned
York
its
the
'•
rubber
crude
'
;/
by
Cash
latex
Rubber
control
Collateral
issued
month
beginning Feb. 1
percentages of aver¬
loans
1941.
War
orders
Navy and other agencies, des'gnated foreign governments and
Reserves for
Reserve
The War
Tan.
25
Production
relaxed
its
Board
control
yet
ing.
$55,000,000,000
about
would be col¬
Federal Govern¬
There would still remain
$27.000.000 000
lected
ment
bv fhe
in civilian hands about
$25 000,-
of exr
cess
purchasing power to push
prices unward.
000.000 to $30,000,000,000
,
re¬
The
sor*
'.
use
producing
of
their fats and oils
prod¬
new
order prevents
fats
and
more
oils
from
of their products
An Degressive Victory Bond! ^han is required to fill orders and
campaign will help to absorb to give them a minimum "prac-
the
$69,412,563
194 692
.
19,256
—————————
(looted
on
the
of
certain
market
(stated
investment
at
cost
of
securities
which
$2,081,193)
the
are
300.000
—„
——
5.000.000
—:y
4,000 000
1,969,494
—
closely
securities
held
and
not
owned
and
the
sold not yet purchased are stated at quoted market valuations in
accordance
corporation's'usual practice, such practice being to state securities at market
values' only if there results a net depreciation.
securities
with
the
"Securities
collateral
of an,
"When
to the
diplo¬
and consular officials for
former
representatives
in
war are
proceeding."
Payment On Rio Bonds
City of Rio de Janeiro (Federal
225,975
$69,412,563
Notes-—Exclusive
at
340,192
■
miscellaneous items
__
from
13 352,973
'16,722,981
a,ccounts payable and accrued expenses—.:—„_
for
.
establishments
the United States of the govern¬
ments with which we are now
having
a quoted market valuation of $28,026,000 are
pledged as collateral
securities having a quoted market valuation of $8,927,700 are
pledged
securities boi rowed.
District
of
Brazil)
has
the
United
remitted
States
of
funds
to
White, Weld & Co. and Brown
Brothers Iiarriman & Co., special
agents, for its 61/2% external sink¬
ing fund bonds due Feb. 1, 1953,
for payment of the Aug. 1, 1939
interest' coupons
13.325%o
of
amount.
The
at
their
the
rate
I dollar
announcement
of
face
fur¬
ther states:
against
corporation
underwriting
issued"
had
contingent
group
basis,
accounts
as
follows:
Commitment
as
a
Bondholders will receive pay¬
memeber
ment upon presentation of
to
purchase-securities, $345,000; - securities purchased oi a
$1,491,574; securities sold on a "when issued" basis, $1,495,591.
•
coupons
their
beginning Feb. 2 at the
New York offices of the special
over
ucts unless otherwise directed by
processors
matic
on
proces¬
to fill contracts for finished
'he WPB. The
purchase price__
Portugal,
"Negotiations looking
exchange of American
agents, at the rate of $4.330625
mn
Irrais&e Fsr
"
_
per
$32,50
coupon,
in full satis-
faction, according to the notice
; to bondholders. Unoaid counoris
-
amendment leaves
free to
consular
67,944
at
———
represent-
in
.the United States.
$27,219,054
——
purchased—-—-
such
remain
Hungarian diplomatic and
mer
21.047
Total
The
Qrcbr Modified
payable
E
loaned-—
contingencies-——^.:,
Capital stock (authorized and issued, 500,000 shares of $10 each!
Paid-in - surplus a-:.:—-—a*,——
Earned surplus
as
Oils
.
not
to loans payable;
lend-lease contracts.
Fa*s,
sold
allow
to
to depart until the arrival
there of the members of the for¬
14,125
—c———
Accrued Federal, State and city ,taxe3—
Due .-customers'-._2-2——'T
monthly consumption dur¬
ing the 12 months which ended
include those for the Army and
atives
142,240
43,949
securities
on
Miscellaneous
age
31,
—.—in—
on
not
'22,047,716
_«—C—
—
—
Securities purchased not yet received,
•
March
,1.
deliv-
the
248,018
depreciation—C.—C-A.
be
the understanding
Portuguese Governthat
that,
government
with
.ment
Liabilities—
Deposits
of
certain
less
————
would
in
consular personnel to proceed to
Portugal
27,032,403
interestC-laC—
Government
Hungarian Government
"would
——
Re¬
Priorities,
provides
that except for filling strictly
war
orders,
manufacture
of
permitted
articles
is
limited
to
fixtures,
-stamps
Deferred-.-items.
by J. S. Knowlson, Acting Di¬
rector
and
accrued
Stales
safely
"The
•
9,071,828
and
American
.has permitted the departure of
.the
American
diplomatic and
1,100,000
accounts receivable
said:
the understanding that
on
United
,
I———_.
to
Europe.
Such
Bulgarian representatives will
,be repatriated along with the
"former representatives of other
European governments.
$1,969,494
stocks—
stocks
program,
part
5,490.672
Securities carried in joint trading accounts-.,——-—Securities sold not yet delivered, at selling price-——
Securities
The
and
con¬
some of the details of
understanding with those
■ered
-
acceptances .C-C:-—
pther securities, bonds
and
advices
•guarantees that- the former Bul¬
garian representatives
in the
1941
-
diplomats
Bulgarian Government
has permitted the American representatives in Bulgaria to de-
1,100,000
V. S. Government obligations, direct and fully guaranteed--
Company.
serve
1
.
of
officers" special
"The
$3,069,491
pledged against securities borrpwed-_i.n—
Bankers'
Washington
and
SHEET, DECEMBER 31,
y.
United
Government regarding the
The statement
•
$300,000
—^
the
by
countries:
-
$4,200,56C
"Herald
the
:.
•
proposals
'the
$279 151
a
BALANCE
Assets—
♦
held
1941
some
Japan,
accepted
particu¬
ygiving
:
31,
Germany,
,
179.437
($0.60 a share)
Wash¬
Arrangements with Hungary
yand Bulgaria have been com¬
pleted,
the
Department
said,
2,790,340
surplus before charging dividends——_U—1941 ($1.60 a share) $800,000 ———.—-.
1941
that
exchange
$458,591
v
...
from
20)
the "Times" said:
12,741
>
,
.
principle and in
States
369 861
-
,
indicating that
Department had an¬
State
lars,
102,151
1941^.—I
X,
Earned surplus, Dec,
■
Tax
not
Jan.
Dividends paid, July 29,
/;•••••'
■
etc
Dividends paid, Jan. 28,
ordered,
New
from
loans,
operating profit'
Security depreciation adjustment
'Net income for year
i'uin.ture
_
maining
in
2,445 56,
Net
rubber.
otherwise
to
bank
on
coun¬
diplo¬
expected to be
Italy and Rumania had
240,12-.
Taxes (including provisions for Federal and State taxes)
Depreciation of furniture and fixtures-
This is intended to strengthen
the Government's control over
from, $110,000 000.-
civilian commodities
the
,
mterest
Marquez
be taken to that
advices
(Jan.
nounced
354,901
expenses
said:
income produced
be available.
ington
$3 388 9?f
Deneral
was not
American
soon.
earlier
the
•;
the
-completed
.
$2,793 896
charges, and miscellaneous income^,
Lourenco
to
All details are
•
dividends received.^i„_.T—
to
The
port by Japan.
year
____
and
,
asked
exchange.
mats who will,
from trading in securities on own account and in joint
participant in underwriting groups (determined on basis
$115,000,000,000.
000.000
the
cost)
Miscellaneous
of
that
y
at this time to alter materially the
conduct of the business. The entire
reason
caps," trousei
production
indicated
othei
the
with
try
sular
Tnclud- Eats and oils, by eliminating the
ing stocks now on distributors' 90-dav inventory clause and sub¬
shelves* no more than $60,000,- stituting a restriction on processr
000 to
*
is
it
Of
correspondent, Frank Kelley, also
Despite
schedule,
(less losses)
accounts, and
and
civilian good:,
and
sponge
Tribune,"
this toll, well
over
£100,000,000 a month is
raised by warriymd campaigns,
mostly from small savers.
■
of
vices
out
'
"
.
apparent
.
provided that no one ' may
sell, trade or transfer any crude
rubber or latex, including com¬
pounded
liquid
latex
without
permission of the Board or the
Rubber Reserve Company.
Ad¬
sav-
tax
living.
no
yr - a summary op income and earned surplus for the
yyy .vyy.y/;;:y::\
ended December 3i, mi, follows: /
.
Profits
WPB
and
goods.
total
of crude rubber
suits
Until
necessities other than
;
of 24% on all other
on
food,
ol
combs,
each
sales
variety
The order, it is
effect of reducing
available for
made
taxes in Great
a
rubber
about 75% below recent an¬
consumption.
The drastic
are
Board's study points
heavy
the
golf
and
tennis
balls and
other sporting goods,
heels
for
ordinary
footwear,
household
aprons,
and
goods
automatic forms.
Britain
wide
a
the
amount
belts,
are
The
has
of crude
1
goods.
bathing
likely
to
increase
these groups, whose sole
experience in the-past is with
savings in their simplest and
most
Feb.
Board
prohibiting
affects the manu¬
facture of girdles, toys and nov¬
elties,
lawn
and • garden
hose,
among
'
lomats
has been carried with loyalty and fine spirit. In
addition, corporation
the full-time services of a vice
president to the Unitec
States Treasury Department for six months and has also loaned
several other senior officers for
part-time work in assisting in the
sale of defense bonds.
control program
spending by these
At the
reduced.
All
been
which will return to this
nual
the
civilian stocks
as
performances.
personnel has met ever-changing conditions with commendable fore- 1
sight and judgment. 23 officers and employees have entered the
armed services, entailing an added burden on those
remaining, which
<
the
will be slowed down by
taxes
'.w rings
Production
order
latex, for
civilian
past have quickly spent almost
dollar they received.
war
after
use
every
groups
War
an
the lower and middle
in
occur
The
issued
latex
higher
budget.
annual
present general
aver¬
of consumption in wartime
age
.
once
individual
on
belligerents,
has
Similarly, an " American ves¬
sel will carry the Japanese dip¬
has loaned
about
at
based:
one year received at the end
and above their (salaries, compensation of 6% oi
salaries received in T941 in general
recognition of the
"There is
a
$1,465 a year. At this level the
family has no automobile, pays
$25 monthly for rent, secures an
paid
was
all
ves;con-
.y
Tn
salaries
over
increased cost of
lars RQDDsr use
maintenance
four-person family
headed by an unskilled manual
average
budget for
the
HffiB
■
the year,
of
inflation is to be avoided.
war
dis¬
durable
■
.
The
the
skeletonize
or
measures
dollar volume will reduce retail
trade
for
to
employees who had served longer than
that will be avail¬
the duration, further
compulsory
savings
may be necessary, if
goods
able
its
lower
and
justed.compensation
_the limited quantity of consume
to
and
consumersy
character
the
In view of
consumers.
addition
of
The
announced.
of
"No .compensation: in
a
safe
under
time of their movement
,
during the
year to,any officer or employee included in the participation
plan
provided for by Article IV of the by-laws. Some of the other officers
and .salesmen were,, according to long-established
custom, paid acl-
an
000,000 to $20,000,000,000 in
level of the past generation. Al¬
3%
wedge of $15,000;-
inflationary
civilian
to
be at the lowest
may
\
.
procedure; in the investment banking business with
respect to such issues. In the period of adjustment occasioned by
this rule, the profits from
underwriting made by the corporation
were adversely affected
particularly because of certain factors which,
in the early stages, complicated the;
competitive bidding procedure.
T:/y.
remain
still
would
There
r
diplomats.
guarantee
$129,622,796, in addition to the general day-to-day trans¬
requiring competitive bidding on certain issues oi
utility securities became effective in 1941 and injected a'
method
new
purchasing
V,ri!'y
so
Mr. Pope further adds:
be
in
country with the
travel
Portugal
the
advantage of
will
■duct
100,000 shares
of
public
be reduced to no
$15,000,000,000-$20,
may
the
to
seems
of
excess
actions. The rule
debt
and
savings
excess
account not in
capital stock, if and when it
extent
to
result of such purchases,
a
of
and
for civilian per capita consump¬
tion. Consumption will; be cut
goods
an¬
an
$8,000,000,000
sel
"In the year 1941 corporation
participated in the underwriting oi
distribution of $1,813,411,140 of investment bonds and stocks to the
$10,000,000,000 may be reached;
Today
standard -of
its
upward ccorporation to do so.
country
of
total
nual
by almost
the
depression
living would re¬
quire about $427 per capita/The
'War production schedule would
leave just about that amount
•
of
trend of bond sales since., Pearl,
of
of
American
Pope, President, who signed the report reveals that the
directors propose that the
corporation acquire in the open market
own
will
Lisbon
to
return to this
on
from time to time for its
diplomats
assembled.
representatives
United States vessel which will
Allan M.
foreign
the,
and
experience
$357 per capita to main-
of
basis
the
On
tain.
required
consumers
During the
income.
excess
Japanese
been
transported
,
$800,000
and
Axis
Jan. 28, 1941 and $300,000 on July 29,. 1941, but
does not reflect the $150,000 in dividends declared on Jan.
14, 1942
past year, such purchases haye
accounted for fully 10% of in¬
dividual income in Great Bri¬
correction
for price changes. The announce¬
ment also added;
y
•about
and,
dends of
total»
of, the
expenditures
ian
have
after year end security depreciation adjustments ol
a net income of $279,154.
y
On December 31, 1941 the total
capital funds, exclusive of re¬
serves, amounted to $10,969,494, which reflects the payment in divi¬
Goods and services remaining for civilians
effort would amount to only $56,000,000,000.
Jan. 28.
on
maximum
a
$458,591
$179,436
Sulphur
Hungarian, Rumanian, Bulgar¬
The annual report of The First Boston
Corp. was issued to the
stockholders Feb. 2 and shows a net operating profit for the year o.
The average consumer's standard of living will have to be reduced
depression levels to meet the President's war production program,
according to an analysis of war consumption recently completed by
the Division of Industrial Economics of The Conference Board and
•
to
at White
are
It
was
made known
at
Washington
on
"maturing Aug. 1, 1931 to Feb.
1934 must remain attached
; 1,
Feb. 2, by the State De¬
"
to
partment
that- agreements for exchange of American and Axis
diplomats- have been reached "in principle and in many details.'
This is learned from
Washington advices to the New
York "Times"
,
European
Axis
of American
diplomats
foi'
will
take place in Lisbon—those for
Japane
—
in
Lourenco
Mar'
of the Axis
be
end
in
the
United
the
Presidential
States
assembled
adjust-
provisions
Decree
23329
dated Feb. 5,
diplomats in Latin America will
States for exchange at the same
for future
accordance with
of
In addition, many
bonds
Th;s oayrr-e^T j« beina
which further said:
The exchange
the
^ ment under the decree.
of
1934, of the United
Brazil, as re-enacted
mcrifie-i
Morca
Decree Law 2035.
8, 1940 by
,
568
THE COMMERCIAL & FINANCIAL CHRONICLE
I
Thursday, February 5, 1942
has
%
m
Decreased civilian
in World
costs
of
consumption, which provided 60% of our costs
I, has contributed little thus far toward meeting the
present program of war production, according to the
Industrial Economics of The Conference Board.
The
War
our
of
Division
Board's announcement issued Jan. 30, states:
Even in the second half of
1941, the
of production
volume
for non-military
uses..continued&
at record-breaking levels. Our
expanded war production dur¬
ing the "defense" period was
achieved
largely by
utilizing
the previously u n e m p 1 o y e d
margin of men and machines,
that is, by drawing upon unem¬
ployed
workers,
by
working
overtime and more shifts, and
by using equipment to a greater
sued
both
order is¬
an
direct¬
Jan. 10 by OPM
on
pulp producers to
ing sulphite
part of their production
to customers of a producer who
has shifted to war work.
allocate
Mutual Savings Bank
total
stabilized
of
accounts
savings
mutual
in
deposits
Great
are drawing heavily banks ob the United States was
civilian production facili¬ indicated by figures for the last
ties for war requirements.
In six months of 1941, compiled by
1940, the first full year of war, the National Association of Mu¬
Great
Britain
obtained from tual Savings Banks. The mutual
10 % to 20 % of her total arma¬ institutions, which operate in 17
ment production by the conver¬ states, at the year end had total
sion of civilian facilities, while deposits of $10,489,679,543, a deGermany obtained from 20% toiCline in that period amounting to
25% of her war output by this $116,544,205.
Seven of the "mumeans.
I tual states" reported moderate
Germany
,
upon
and
ment
s
analysis recalls our ex¬
with
curtailment
of
"non-essential"
production
in
perience
1917-1919.
furnished by
In
devoted to war
the
United
$31,000,000,000
by
expenditures
met
reducing
by
The
have been
States is estimated to
the
level
of
A
report submitted on June 22,
1918, by a special committee on
industries, which
non-essential
Mr.
included
and
Baruch
Mr.
that no industry
should be absolutely prohibited.
Hoover,
held
The gain from total and sudden
prohibition,
it was believed,
would be trifling as compared
with
the
economic loss both
and after the war that
would result from complete cur¬
uuring
tailment.
the
Severe curtailment
of civilian
the output of passen¬
ger cars in the last six months
of 1918 was ordered reduced to
that year
accounts
agricultural im¬
tractors,
electrical
beating appliances, automobile
tires, and ice cream freezers.
ing
machines,
plements
and farm
bicycles, refrigerators,
industries were
severely curtailed by restrict¬
ing the amount of fuel they
Eleven
other
might use.
In Great Britain the
"nucleus"
the
war
plan
transition
has
from
so-called
facilitated j
civilian
toj
production. Marked reduc- j
production andj
ticns in civilian
of
.
i
practicable, to decentralize
of issuing bonds >and
thereby to facilitate prompt de¬
livery to purchasers; Mr. Sproul's
work
v.kvh"
letter further states:
The
Secretary
\
of the Treas¬
has, therefore, authorized
this bank, as fiscal agent of the
United States, to designate and
ury
qualify as issuing agents of De¬
Savings Bonds, Series E:
1. Any
organization
incor¬
porated under the laws of any
fense
the
the
of
State
District
United
of
Columbia
applicant will issue a suf¬
of
number
warrant
designation
bonds
to
issuing
as
plants which are closed down.
A forerunner of a similar plan
of
receive
of
Adminis¬
Price
issued
directive
a
Nelson
and
j
|
officer
office
or
rationing
power over:
The
sale
The
sale
person
to
1.
by
■.
of
products by
"any person who sells at retail.
"
2.
of
products by
ultimate con¬
acquiring the products
"for the satisfaction of personal
any
an
sumer
needs,
distinct from business
as
industrial needs.
or
In
of any
statement
a
/"" """
WPB
the
ex¬
...."
' .V'.-.' ;.1.
State or of any county or mu- plained:".
The delegation of authority
nicipality thereof, which have
payroll allotment plans in operr
ation, applications for designa; tion as issuing agents for the
•marks
i
j
!■'. this
Defense Savings
Critical
being,
proximately 1,000 employees
are
ian
designated as
issue a sufficient number of bonds to war¬
rant such designation. : Issuing
issuing
so
bonds
not
in
.
war pro¬
ordinary civil¬
.
,
rationing seems in¬
evitable, and, so far as the civil¬
ian
population
its
designated may sell
only to employees
is
in
concerned
ordinary purchases for
per¬
sonal
requirements, the order
today gives full con¬
to the OPA, although the
announced
participating in payroll allot¬
ment plans, but also to the gen¬
eral public and, to employees
making intermittent purchases
outside the scope of their pay¬
trol
Chairman
of
tion Board
amend the
roll allotment plans.
Mr.
ian
right to
directive
allocation
the
Produc¬
the
estab¬
distinction between civil¬
a
goods
War
delegation.
rationing for
and
Exchange
the
reserves
Nelson's
lishes
in
0a N. Yi Stock
than
channels.
Further
agents,
agents
of
if
would,
more
important in
more
duction
or
the
shortages
exist
in
raw materials which
basic
many
considers that only
applicants
having
ap¬
in
step
for
rationing
products.
consumers'
Bonds,
time
For the
E.
further
a
preparation
bank
those
:
by
approved
Roosevelt, Mr. Hender-.
receives authority to exercise
son
This movement
months before.
In
President
from
fiscal
Office
corporations, and,from the chief
;
27
the
Mr.
this
above,
to
Nelson, Chairman
Board, on
to Leon Henderson, head
tration.
* ' V" •'•• •'othe, authqriza-
now.
on
delegated
was
Donald M.
Jan.
United
j
market
of the War Production
principal
the
by
to
will
.or
all
and
retail
by
on
unconditionally
referred
Series
plan and provided further
opinion pf this bank
ficient
Pursuant
I bank
,
for
needs
rationing
of
While
authority to
war
OPA
purposes.
is
given
the civilian
in
operate
personal
or
counts were
closed out in De¬
gerterally renewed
later on.
The average of all
accounts varied only by a de¬
crease of 32 cents per account,
Exchange were at
cember and
only by the years 1929, 1930 and 1937, according to an article appear¬
ing in the January issue of "The Exchange", monthly publication oi
personal
field, the order specifically states
that the delegated authority would
not
permit the OPA to control
acquisition of products for war
the Stock Exchange.
agencies,
$-366.48.
Omitting
Christmas and
miscellaneous club accounts, the
Compared
with
1940
but
16%<fcbelow
1929's. all-time
top,
the
had
and
;
no
a
A million
significance.
half
Club
Christmas
standing-at
school
savings,
average
of regular accounts was
$832.60.
Dividend
age
on
rates
in
deposits
in¬
reflected
difficulties, the
payments
stocks listed on the New York Stock
record level in 1941, having been exceeded
on
a near
Disbursements on common shares listed on the
to $2,280,654,000—an increase of 8.4% as
magazine states, adding that listed
preferred shares paid $360,367,000
—9% higher than in the year be¬
fore. The theorem which held true
in
1941, the publication explains,
that "if industrial output is
was
all mutual
commenting on these figures.
Mills, Jr., President of
high enough, corporations can as¬
sume the burden of heavier taxes
and still pay a
satisfactory return
shareholders."
Andrew
to
Dock Savings Institution,
and of the National
Association
of
Mutual
Savings
in part:
the Dry
New
York,
in the last six months of
1941.
The
at
Mtitual institutions have done
doing
are
everything
in
their power to further purchase
the
of
and
bonds
especially
with current earnings.
The
suc¬
cess
of this effort is proven by
the
fact
now
have distributed $200,000,-
that
our
institutions
widely distributed than ever be¬
history of the Stock
fore in the
Exchange; a total of 627 listed
common
stock issues, and 322
issues, yielded a re¬
The siight increase in the
preferred
turn.
000 of the securities and
expect
service
along
to
extend
broad lines.
that
We
ments,
larger
were
amount of the pay¬
while
a
considerably
number
of companies
giving full
I
would
urge
every
em¬
ployed person not to draw upon
savings if possible, but to keep
this capital intact and add
as
means
count is
permit.
to it
A savings
jusbas- vital
as
ac¬
owner¬
ship of Defense Savings Bonds,
which
constitute
investment.
a
long-term
industrial
seven
of the
represented
on the Exchange. Some sizeable
decreases,
dictated
more
by
heavier taxes rather than by
war
the
war
on
a
dividend
basis,
have
become
would
apply again in 1942 apparently
a
large question in the
minds of investors at the yearwas
as
they
stocks to
price-earnings
allowed
sell at the lowest
since
1932.
.
the close
At
the entire common
stock list was yielding 7.6%. c'.i
the average, based on 1941 divi¬
dends and prices as of Dec. 31.
This is the over-all figure for
clouded,
'
"
'
•' *
'"'J'
dividend-payers
Division
Mr.
war
to
of
the
Industry
Op¬
The authority delegated
issue
of
of
rules
acts
Knowlson
includes
power
priority orders and regu¬
lations, to compel the acceptance
orders
by
producers
and
manufacturers, to requisition the
property of any person or firm
All
told, larger disbursements
made by'.'300 of the G27
companies.
which
is
needed
for
the
war
ef¬
fort, in
accordance with Federal
statutes, and to approve requisi¬
Biggest Dollar
tions of other Federal
agencies.
Increase.
The
biggest
made
whose
by
dollar
increases
dividends
common
the
payments
$75,725,000 to $113,3-34,000; the
petroleum
companies,
from
$191,039,000 to $233,371,000; the
aviation industry, from $23,574,000 to $47,472,000; and the rmls,
from
Swope Joining Treasury
were
Gerard Swope, Chairman of the
industry,
from New York City Housing Authorwent
steel
$143,270,000
to
$160,640,-
four
lity, announced
industries
000.
,
Dividends
in
paid.
Considering
the
on
administer
to
requisitioning
Knowlson,
head
to
did.
stock list,
and
to
in the computation
the stocks which did not pay
dividends as well as those that
including
of
rationing
to
the
S.
erations.
—public utility, chemical, automobile and petroleum — bulk
large in relation to the rest of
the stock list, 166 companies in
these industries yielding nearly1
50% of all common dividends
the complete common
the
other
day (Jan. 27) delegated the
to operate the priorities
WPB's
were
lias
respect
system
J.
..
Steel
and
materials, Mr. Nelson
under
its
payments
by
93.6%; the shipbuilding indus¬
try by 76.6%; the aviation in¬
dustry, 66.1%; the steel compa¬
nies,
49.7%; and
the
textile
industry, 32%.
re¬
administer
to
of materials
power
increased
in
Whether 1941's theorem
more
acquiring prod¬
foreign coun¬
to
production supplies through
existing priorities system.
same
Meanwhile the rubber indus¬
to
armed
agencies
The War Production Board
continue
With
production cuts, occurred among
the land and realty companies,
the public utilities and the to¬
bacco companies.
;
the
Government
export
allocation
groups
any
ber of companies.
end
are
will
impression of "huge
profits" by a limited num¬
futes
war
lower last year
try, whose outlook since appears
Although dividends weren't
a new. peak, they .were more
for
ucts
tries.
in
including
or
and other persons
——
alone, their average yield was
9.3%. Aggregate payments were
magazine article continues,
aggregate
and
services
Stock Exchange amounted
aver¬
institutions being 1.89%.
In
Dividend
ac-
ratio
financial as¬
provided to those
; •: /
\ tionk
i
that in the
..
| States.
mak¬
provided
that such applicant
has in operation a payroll allot¬
the
an
direct
of the
obligations
to both
as
interest
and
sale of
nation; and
2. ane Treasurer or Treasury
Department
or
other
appro¬
priate officer or office of each
State and of each county and
municipality
thereof,
making
application for such designation;
such
guaranteed
j
ing application for such desig¬
ment
States,
authority
to
ration
commodities sold
goods
of
obligations
debt
United
or
States
them
Priorities To Knowlson
Full
bank
amount
-
J whichare
as
the
of the year,
is
equivalent
far
cooperation to the Government.
sistance
•
the earlier time.
Henderson Empowered
To Ration Retail Goods
as
with uthis
j pledge
and
;
Also
civilian goods, but
000 at
that
cor¬
issuing
j. agents, will be permitted, in
lieu of making such deposit, to
Bonds
war
by
period, against $5,790,000,-
fiscal
which have payroll
requisition,
except
porations
acting
\ public
labor, materials,
and factory space have been re¬
leased for war production with¬
out completely shutting off civi¬
lian
production. By this ar¬
rangement selected plants in an
industry continue to
produce
and
i
widespread adoption of pay¬
allotment plans by employ¬
ers, it has become desirable, , so
consumption have been- accom¬
plished
Jan. 28
on
from
and
obtained
six
than
lower
107,250
was
bonds
the
roll
to
output. Simi¬
lar limitations, of Varying de¬
3anks, stated:
grees of severity, were placed
In view of the large public
upon the production of many
investment in Defense Savings
other goods, including pianos,
Bonds, it indeed is gratifying
cutlery, stoves, metal beds, boil¬
ers and radiators, baby buggies,
that mutual savings bank de¬
gas stoves and appliances, talk¬
posits were so well maintained
25% of total 1917
Savings
outbreak
savings banks last Dec.
at
15,738,907, which
vestment
goods was not begun until the
summer of 1918.
In August of
Defense
of
stood
31
supplies.
civilian
of
number
mutual
of
The plan
was to bring about gradual cur¬
tailment, rather than a sudden
civilian consumption.
extinction
continued
in
concerned
the
degree
a
others
since
of protection
for depositors substantially
higher than in the case of most
accumulations of capital.
60% of the
World War I,
which
12.1%
afford
corporations
counties and municipalities,
Federal Reserve District,
Sproul, President of the
Reserve
Bank,
explained
that,
because of the large increase in
practically peak position
mutual savings banks in total
at
Further details are
the board as follows:.
New York announced
from
Allan
sustained as well
in total assets, which amounted
to $11,794,289,030, a decrease of
$143,974,582.
Surplus
figures
changed slightly, the total being
$1,271,263,509, the recession
amounting to $13,422,101. Ratio
of surplus to deposits remained
Tne Conference
program,
Boaru
Bank of
receive
Second
deposits was
peacetime goods. Since only a
beginning has thus far been
on
the current curtail¬
States,
to
will, ror the time being, only consider that those applicants having
approximately * 1,000
employees for more would
issue a sufficient"
agent.
The Treasury Depart¬
number of bonds to warrant such
ment
requires issuing agents
designation.
In his circular call¬
; so designated to deposit witn this
bank
ing this to the attention of banks
the, full issue price of
The
made
prepared
of
the
in
stocks
common
later
operation, applications for designations as issuing
agents ior the sale of Defense Savings Bonds of Series E.
The bank
Harbor, the report1 gains.
The
Association's
andeclares, it has been clear that nouncement by Executive Secrefuture increases in our produce tary John W. Sandstedt further
tion of war materials will be says;
of
is
listed
allotment plans in
Since Pearl
accomplished largely by con¬
verting industries normally de¬
voted
to
the
production
of
it
officers
sales
Accounts Stabilized
A
analysis discloses
Britain and and
The Board's
in
observers
some
degree of its capacity.
that
States is seen by
in the United
that
1935-
prosperity.
Approximately
$6,220,000,000 was distributed on
fck Jf IssHbg lofsnss Savings tads
,
The Federal Reserve
outdistanced the
now
37
The
*
-
1939-41
r —~
industrial
spurt
on Jan. 23 that he
had resigned in order to devote
his entire time as a special assistant to Secretary of the Treasury Morgenthau.
Mr. Swope an-:
nounced his resignation in a letter
to Mayor F. H. LaGuardia, explaining that he had been giving
part of his time to the Treasury
Department but now bad been
asked to accept a full-time post
in Washington.
Mr. Swope, former
President of the General
Electric Co., had been head of the
j Housing. Authority since Decern _
ber, 1939.
.
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4042
Volume 155
House Committee Concludes Hearngs
Securities Acts;
The
1933
hearings
and
legations
On
..
Delay Seen In Drafting Bill
v
the proposals to amend the Securities Act of
Exchange Act of 1934 were concluded in
on
of the Commerce and In-^
Kenneth L.
of
the
Smith, President
Stock Exchange.
Chicago
Both Messrs.
Putney and Twom¬
bly expressed themselves in favor
of
Wadsworth bill,
the
Mr. Put¬
stating that "in the light of
vast unrestrained powers of
ney
the
the "(Securities
and
Exchange)
Mr.
Wadsworth's
Commission,
proposals to reform the adminis¬
trative
process
seem
extremely
mild and reasonable.
They would
in
it
as
interfere
wise
no
efficient
the
the
law
written by Congress and
was
would
with
of
enforcement
in
not
the
least
diminish
the protection of
investors."
pointed out
4
Mr.
Putney
"under
SEC
the
limited
with
vested
power
un¬
make regula¬
tions having the force of law and
for
incur
may
to
violation
the
of
which
one
civil liabilities
severe
and criminal
this power
penalties. It derives
from provisions in the
laws
conferring general rule-mak¬
ing powers as well as from spe¬
cific provisions dealing with spe¬
cific problems." In part he went
on
to
say:
It
is
clear
strained
•
rules
the
that
to promulgate
susceptible of gross
It is as dangerous in the
power
hands of
whose
men
judgments
/
may be biased from strong and
V sincere conviction as to public
policy
it
as
would
be
in
the
hands of corrupt administrators.
The
membership of the Com¬
is constantly changing.
mission
The
readily
has
exercised
Commission
\
which
restraint
voluntarily
in
be
the
been
by
past
abandoned
the
may
in
the
future.
is
It
essential, therefore, that
the
citizens
der
the
tion should
tection,
who must live
Commission's
un¬
jurisdic¬
be given some pro¬
that
assurance
some
their
I
-
*
rights will not be wholly
disregarded in the pursuit of
some theoretical concept of the
collective good.
Mr.
Wadsworth's
proposal
prescribes the manner in which
rules and regulations shall be
prescribed by the Securities and
Exchange Commission. Its pur¬
pose is to afford any person who
may be affected by a proposed
rule
or
regulation an oppor¬
tunity to be heard before the
rule is adopted and also to afford any person affected by an
existing rule or regulation an
opportunity in good faith to ob¬
tain
reconsideration of it. This,
the
in
of
words
the
Supreme
Court, is one of "the rudimentary requirements of fair play."
*
,
As
;■
.
dure
I
*
*
conceive
of
proce-
Wadsworth's
Mr.
under
the
proposal, it would be something
like
this.
The
commission
would prepare its
rule
as
it does
today by holding informal con¬
ferences with representatives of
the securities business.
When
the rule is in satisfactory
it would then call a public
ing
at
which
anyone
shape,
hear¬
affected
by the rule may present his ob/
jections to it. This would safe¬
guard all against hardship.
*
#
*
assure
a
Mr.
years, you
the
must have some rea¬
sonable restraint upon that au¬
tocratic process.
therefore, to adopt
the proposal in H. R. 4344 pro¬
viding for fair and open hear¬
ings upon proposed regulations.
This provision
is essential to
prevent arbitrary and unreason¬
I urge you,
time
also endorsed Mr.
proposals providing
right of appeal, as to
Putney
publication
•..
coin¬
of
follows:
as
the
mission
done regardless of the outcome.
cated
This type of procedure is foreign
to anything contemplated by the
the
be
Congress, I feel
object
type
;
And what does it do to
ors?.
invest¬
The
that
tragedy of it all is
the long-last—particu¬
in
larly
if. the
unfavorable
con¬
opinion as it may deem neces¬
sary and appropriate in the pub¬
Wadsworth's proposal for all
the details of setting up
the
ma¬
lic
chinery for such appeals are left
to the Commission.
In fact, the
is
disposed to do so.
and
officer
doubted that the Commis¬
has
sion
consistently
or
mission
of the
markets
nation
longer need a, policeman" but
"they need a pulmotor."
Special
advices to the New York "Herald-
Tribune"
stated
Jan.
on
an
committee
27
from
its
Smith
Mr.
asked
the
force
the
members
to
SEC to
the
change its attitude toward
exchange and invest¬
bankers, saying "there is no
stock
ment
necessity for additional authority
to cope with any situation known
as
foreseeable."
The
in
Tribune"
added:
part
advices
/:
Emil
President of the
Exchange, Presi¬
dent Rea of the New York Curb,
Frank Dunne, President of the
x^ew York Security Dealers' As¬
sociation and others, these refer¬
NYSE On Blocked Account
The
change its view¬
Wadsworth,
ities
Exchange Act of 1934,
W.
"Sec. 2. For the
reasons
of
criticism is that the Commission
securities
upon
visions of this section shall not
markets,
too often goes
apply to the filing of
national
of the law in
and
Mr.
spirit of the law.
Putney, in conclusion said:
Wadsworth's
Mr.
proposals
important for
another reason.
With only one
exception, the members of the
particularly
are
Commission
have
been
men
with little or no practical ex¬
perience in the -securities jbjisiness
or
finance.
for
it
in the field of corporate
This may be desirable
give them a better
perspective of the evils to be
may
comb.att.ed.
their
But
lack
of
experience in that field greatly
increasses
the
risk
th^y
that
place too little emphasis
factors which an experi¬
may
upon
enced
business
would
man
re-
ognize
as,
as most significant, such
for example, the extent to
which
awkward
an
registration,
for
form
impede
the
flow of capital, or the extent to
which uncertainty as to what
forms
are
may
of
stabilizing activities
permissible may weaken the
securities
the
sale
markets
of
.
hamper
or
issues.
new
Simi¬
larly, their lack of experience
in this field greatly increases
the risk that they may unknow¬
ingly overlook the interests of
individuals affected by
their official action.
Mr. Wads¬
various
worth's
proposals offer sound
and adequate safeguards against
such mistakes.
Col.
Twombly's
of considerable
statement
length,
as
was
to which
of
a
that
Wadsworth
the
SEC
be
bill
proposal
forbidden
to
any papers
to
reads
hearings,
and
be held
mission
or
the
of
before
officer
an
instructions
No
gress
Constitution
of
United States have been and
the
are
being constantly challenged by
bodies
not
administrative
of
actions
the
answerable
to
the
electorate, created by but sel¬
dom responsible to the Congress.
They are prosecutor, judge and
jury.
A man can be condemned
The
situation
isting
revised
tion
of
SEC
the
in
ministrative process."
.
.
Mr.
of
so
that
such
be written
could
destructive
members
mony complained that the re¬
gional exchanges were not given
I a voice in drawing up the pro¬
posals
to
laws.
However,
amend
the
security
corporations,
security dealers, etc.
To em¬
phasize his point he cited the
vestment
Transamerica
Anglo
delisting
case
which has been pending for over
three years, with the SEC's al¬
is
the
most
borne
-
out
hardened
criminal
by the history of
jurisprudence.
Saxon
Criminal libel
is
a
available against an
remedy not
administra¬
with
had
a
number
he
did agree
of the
Bankers'
advanced.
He
from
dealings
from
*Suspended
12, 1941.
f Suspended
dealings
Dec.
Dec.
19, 1941.
R.H.O'Brien Named to SEC
•
Robert
of Montana
O'Brien
H.
nominated
was
by
Jan.
on
President
22
be
to
the
of
term
Mr.
1945.
changes
expiring in
O'Brien
vacancy
was
caused
Chief Justice of the United States
the District of
District Court for
Columbia.
the
SEC
1933
as
staff
The
appointee to
Washington in
of the legal
Public Works Ad¬
went
of
the
to
and
staff in 1934.,
tions
new
member
a
ministration
with
joined the SEC
Mr. O'Brien's posi¬
Commission
the
have
included: Assistant
Director of the Registration Divi¬
successively
sion,
Associate
Associate
General
Counsel,
and
Director
Director
of the Public Utilities Division.
Announcement
on
was
also
made
Jan.
,22 that Robert E. Healy
remain as a member of the
will
Mr. Healy,had submitted
resignation
to
President
but, after reconsidera¬
Roosevelt
withdrew
tion,
ident's request.
only
original
it at the Pres¬
Mr. Healy is the
member still with
having bben ap¬
the Commission,
pointed in 1934 as one of the two
Republican members.
the In¬
The
Association
emphasized
a
re¬
by the appointment of Edward C.
Eicher," former SEC Chairman, as
SEC.
which the exchanges and
of
must
early in his testi¬
That it is unfair
against
Slovenes)
his
The witness
violations
case
France
balances."
publicize, in advance of a closed
hearing, unproved charges of
in the
(Serbs,
segregate customers' free credit
pre-hearing
publicity which the SEC has
used during the past eight years.
even
we
members
margin accounts
corporate
Yugoslavia
*Germany
corporate
and
on
SEC
to. proceed
far have been unable to agree
prosecutor having drawn and
publicized the indictment then
sits
in
judgment on its own
findings. This power—even the
threat of the use of it—has kept
not only the financial fraternity
but industry itself on the uneasy
A book
the
and
"unable
because the Commission and
must not carry
the
administrative
Exchange
been
Poland
named to fill the
Exchange has been work¬
ing with the Commission's staff
for weeks on a "simple proposi¬
tion of making established corporations now dealing in securi¬
ties, eligible to become members
of the exchange."
He
revealed
the
Chicago
Stock
Norway
Croats &
June,
Stock
have
*Japan
Finland
mainder
machinery of the Commission,
pointing out that the Chicago
•
*Italy
Estonia
the
particularly
was
the
•{•Hungary
Denmark
ad¬
its
pursue
Smith
critical
Exec¬
declara¬ jmemtoelf of the SEC for the
which
attitude
should
ex¬
in
Greece
make la; Roosevelt
to
as
Congressional
—ruined—before hearing.
seat.
revised.
be
ful to the necessities of the
officers
Commission
the
should
of
Exchange
designated
slovakia
practices."
thing which the Con¬
might do could be as help¬
to
The
Czecho¬
and
one
therein.
China
Congress .gave the SEC
its'instructions When the present
laws \were enacted,"
he said.
"Conditions have changed.
The
designated
by it and appropriate records
thereof shall be kept.
In fixing
the time and place of hearings,
the Commission shall give due
regard to the convenience of,
and the expense to, the parties'.
These amendments are prob¬
ably the most important funda¬
mentally of any that have been
proposed at these hearings. The
fundamental rights and liberties
of American citizens guaranteed
by
of
and
and
method
bonds
normal
fBulgaria
"The
the Com¬
or
exchanges
such
Belgium
over-the-counter
securities
to
^Austria
are
transactions
hearings shall be private,
except that if the
party or
parties (other than the Com¬
mission) to any hearing .shall at
any time request in writing that
it be public, such hearing shall
then be public.
All hearings
of this
Order 8389, as amended,
and'subject to the provisions of
Public Circular No, 6, are listed
on the Exchange:
and to this end provide for reg¬
ulation
and
control
of
such
All
may
effect
The
utive
in the over-the-counter markets
follows:
as
blocked
Bonds of the following foreign
liquid markets for securities
upon
provision
the
such
of
.
countries
makes it necessary to encourage
and foster orderly, active stable
any
testimony or decumentary evi¬
dence in any action, suit or pro¬
ceeding in any court of com¬
petent jurisdiction.
As
laws
it
dealing
affected with a
public interest which
be the
blocked
is
explained,
is to
eliminate the 30-day regular way
ex¬
and
of
the
Governors.
here¬
changes
introduction
countries
countries, shall be for delivery as
provided in Rule 112 of, the BoarW
Repub¬
ducted
the
that
Presidential Executive Or¬
under
ment follows:
pro¬
mem¬
fact
including political sub-divi¬
sions, -and corporations organized
as
scribed
into effect what it conceives to
the
der,
inafter enumerated, transactions
in securities, as commonly con¬
the
to
of
ernments
under
Representatives
wilful, shall
be subject to the penalties pre¬
beyond the letter
endeavoring to put
the
directed
attention
beginning Feb. 2 all regular way
contracts in bonds issued by gov¬
lican of New York. The amend¬
of
NYSE
bers'
by adopting an amend¬
ment to Section 2 of the Secur¬
be
is¬
our
29, page 409, 410 and
in its announcement says:
James
violation
of Jan.
424.
point
personally liable
to respond in damages to any
person injured thereby and, if
a
having appeared in
ences
sue
the
section shall be
for
Schram,
in
by
provisions of this title. The
would
prepare
make the SEC
ap¬
shall
violation
to
contracts
proposed
such
subcommittee
a
revert
sin¬
cerely endeavored to carry out
the spirit and letter of the law
as it understood it.
In fact, my
and
taken
New York Stock
change,
"Herald
information in violation of this
.
that
named
He (Mr. Smith) declared that
the
House
committee
could
order issued.
Any
employee of the Com¬
who
that
publish or
disclose, or cause or permit the
publication or disclosure of, any
gress.
never
such
would be
legislation,
it is considered unlikely that this
will be ready for the House before
"no
appropriate notice, to exist
to have occurred and
propriate
prompt,
fair
and reasonable
procedure as directed by Con¬
While I have not always
agreed with the Commission's
interpretation of the law, I have
concerning any
alleged violation until
or
adopted the Commis¬
faithfully establish a
will
any
Commission, on evidence pro¬
duced at a hearing held after due
I believe that if this pro¬
sion
shall the
infor¬
violation
nor
violation has been found by the
Personally, I do not share this
vision
investors,
mation
or
ily emasculate the right of ap¬
fear.
of
Commission publish
that the Commission could eas¬
were
interest and for the protec¬
tion
principal objection to Mr. Wads¬
worth's proposal is that it leaves
so much up to the Commission
peal if it
securities
charges, and the publication of
Washington bureau, reporting this,
final order,
decision or
any
Mr.
of
to'
place of the hearing
parties involved and
favorably on these
suggestions administration"
sure.
It is a
of policing
which
ap- several
months.
In our issue of
proaches the more popular and Jan. 29 we made room for the re¬
prevailing
European
systems. cent testimony at the
hearings by
.
;
omitting therfrom all eviden¬
tiary
facts,
allegations
and
how the Com¬
see
can
the
acted
damages.;' What then, is to pre¬
away from members and ex¬
serve
a
man's reputation and
change management.
livelihood if he can be publicly
At the conclusion of the House
condemned
without
a
prior Committee
hearings on Jan. 27,
hearing? The damage has been Chairman Clarence F. Lea indi¬
"unproven"
and
and
Wadsworths
fair
the rule-making power over
with
SEC's
vision reads
the "Wall Street Journal" in a.
and proper
use
of the rule making power, Washington account said:
Mr. Twombly devoted a large
and to prevent favoritism and
part of his testimony in support
persecution through abuse of
To
cided
stock
of the markets
tee
answerable in
not
safeguard against the arbi¬
demnatory publicity has been
No publicity shall be given by
trary, capricious and unreason¬ y
directed
against
a
publicly
the Commission to any
able exercise of power to the
notice,
owned
corporation—the curse
private hearing, investigation,
detriment of the liberty
and
falls on the innocent investor.
examination, proceeding or or¬
property of the citizen.
It rep¬
President Smith of the Chicago
resents the democratic way and
der, other than the publication
Stock Exchange told the House
in the Federal Register of no¬
would curb the present despotic
Committee on Jan. 27 that the
tices of hearings,
stating the
power of the Commission.
a
unre¬
is
abuse.
'
for
almost
Transamerica
charges of
false and misleading statements.
regulations, and to guar¬
Commenting on the proposed
antee fair play to those whose
amendments to the Securities Act
interest
may
be
injured or
of 1933 with
respect to private
affected by a rule or regulation.
Without in the slightest degree hearings and publicity Col. Twom¬
bly at the House Committee hear¬
hampering the efficient admin¬
istration of the law, it provides ing said. As to publicity, the pro¬
that which he said:
statutes, the
It is hard to
present
is
of
SEC
tive body is
i
able
dustry Association of New York)
and
tive body.
The Supreme Court
has decided that an administra-
i
Corp. in 1938 caused irreparable i.
investors,'Mr. Twombly
said.
He produced charts and
figures designed to show that a
great drop in the market price
Com¬
merce
Committee, those heard at the concluding session, having
included Col. Edward B. Twombly and William B. Putney, 3rd (both
of whom spoke for the committee on re-employment of men .and
Washington on Jan. 27 by the House Interstate and Foreign
money
•
harm to
Securities
the
yet not adjudicated.
SEC's •
publication
of
charges
against Transamerica
The
569
of
Commission
Ganson
Purcell
now
as
consists
the new
Chairman (see issue of Jan. 22,
particularly objections to, grant¬
ing the Commission additional page 326); Edmund Burke, Sum¬
ner
T. Pike and Messrs. Healy
powers
over
the
exchanges,
and O'Brien;—•
—
—
pointing out that if the commit¬
f
instead
silver
Sliver
Consumption Jri 11. S. And
Rises To £l,§IO,n Ounces-Handy & Harman
scant.'3U0,000
a
of stocks
not
diversion
portion of Mexico's
silver output would have created
a
serious situation, and the nat¬
solution
the
market '
was
.
of
York market during
1941."
Mexican
the
to
dent
the
in
interest
Review
New
figure
months,
v
tributed
IncK
"official"
the
until Nov,
to
points
out
of the
This
year.
which
Mexico
19
Nov.
an
for the
signed
was
from
on
'•
-
%'Y
the daily price
Y*
commenting
data
published
000,000 ounces originally given
by us should be increased "to
3,140,100,000 ounces.
:;:
Government
Furthermore, the Treasury De¬
at
substantial
-
-
the
hand
3,140,100,000 ounces on
the beginning of the
at
3,280,-
appor-
sents
repre¬
Treasury
United
silver holdings at
make a total of
000,000 ounces, which
3,000,000
less
the
of
fourth
to
that
the
Asia, Africa
practically a
that year's fig¬
is
Australia
of
repetition
As
available
plies
new
information
ports
from the
Customs
show
ounces
;
a
months
11
that
major
Maria
_
for
,
4
which sets the figure at
000
ounces.
that
has
been
indication
no
of any
of silver coin
occurred in 1940; nor
as
a
predic-
■'
not
.
hand,
•
we
expect a decline in the price of
below
35
cents.
The
silver
Treasury
buying
and
silver
;
since
there is
no
evidence
of
a
Government's
the
in
change
maintained this
July, 1939.
has
rate
policy.
,Tjtie following figures of silver
production
and
purchases
silver
are
the
at
and
Britain,
portion
Theresa
In
Latin
the
Allies
although
of
the
consisted
of
thalers
America,
1
WESTERN
abroad would
chases
HEMISPHERE
for
Panama:
silver
pieces,
crease
2-sucre
mint1
coins
of
in¬
;
the
and
West
'
duced to
an
even
smaller frac¬
tion in 1941 because most of
the
in
industrial con¬
occurred
in
the
United States.
Needless to say,:
expansion
sumption
the war was
responsible for this
expansion, and its
classified
as
follows:
i
may
a
be
greater
of
vestors
out
institutions
than 7800 in
more
have
elected
method of settlement.
chosen
have
shares
institutions."
insured
other
in
Mr.
Kreutz likewise said:
The
Corporation, which now
protects 3,120,000 investors in
2,343 savings and loan associa¬
tions, was established with a
of $100,000,000.
paid-in capital
Since then it has met 7M> years'
operating
(including
expenses
cost of
the
acquiring over $3,-
000,000,000 worth of business),
date, and allocated
$30,889,677 to reserves and sur¬
plus which are invested entirely
in Government obligations and
securities wholly guaranteed by
the Government. The annual in¬
the
Corporation
approximately $7,000,000,
consisting of annual
premiums paid by insured in¬
stitutions, admission fees from
of
come
amounts
The
to
Federal
investments.
Loan Bank
Home
of New York is one of the 12 re¬
gional Banks of the Federal Home
Loan Bank System, which pro¬
vides a credit reserve for nearly
3850
savings and loan associations
similar thrift and home-fi¬
Loan
Western
Hemisphere,, 203.5
Home
Bank
of New
York.
Nugent
Fallon,
predecessor
to
Mr. Kreutz as general manager of
'the Federal Savings and Loan In¬
213.2 surance Corporation, is now presi¬
dent of the New York Bank.
UNITED
STATES
GOVERNMENT
Silver Purchases
Domestic
produc.
Foreign silver
President Praises
1940
69.7
139.8
General Mac Arthur
68.3
70.2
___
President Roosevelt on Jan.
26
tribute to Gen. Douglas
MacArthur,. congratulating him
paid,
Total
139.9
208.1
on
Insurance
More
than
Program
investors in
savings and loan institutions have
been saved or are being saved
from loss on their insured savings
57,000
to $5,000 through the action of
the Federal Savings & Loan In¬
surance Corp. in carrying out its
up
Insurance
Corporation,
told
the occasion of his
62d birth¬
day, for the magnificent stand he
and his men are making in the
Explains Savings, Loan
program,
Oscar
R.
and di¬ protective
conspicuous in three Kreutz, general manager of the
which
and three years.
4.5
both, indirect
fields
payable in one
"It is significant,"
said Mr. Kreutz, "that only 11 in¬
rest in debentures
;
4.5
Indies
previous high of 41,for the
two
wasestablished.
proportion
of
the
yearly totals has always been
less than 5%, and it was re¬
the
Kreutz
nancing institutions. Some 377 of
these are members of the Federal
95% over 1940,
Canada's
to investors protected
Insurance
Corporation,
explained. They may
shares
in
other
normally
open
by
Mr.
30.
America
ne¬
figure
an
ment
and
ounces
rect, were
to
1941
ounces,
of nearly
when the
main
instructed
the
estimate
f
two methods of settle¬
are
25.4
1941
80,000,000
There
28.
America,-.
wide margin for the use of
industries,"
dor
and
South
Total;
effects,
5-sucre
Central
silver in the arts and
and the Central Bank of Ecua¬
-
;
Stating that "the United States
record by a
We
of
method
this
settlement.
22.
Canada
and Canada set a new
at
electing
then
,
.
cessitated.
tional
was
have
those
are
immediately to
and interest on its
pro¬
surplus
tremendous
fractional
have
time
same
stocks of. silver
without the corresponding loss
of foreign exchange which pur¬
vided
available
associations when first insured,
from the Review:
—
people for more currency and
Shares
issued.
are
all losses to
do not
criticism, so far as we have
Silver Production
•heard, of the debasement of the
,(In millions of fine ounces)
rupee.- It would appear, there¬
V'
'
1941
1940
fore, that the steps taken by
United States.
70.
67.
the
Indian
Government have
Mexico
79.
86.3
satisfied
the
demand
of the
any
required;
paying for them in cash as they
*
in
silver
emphasize, how¬
this is
merely a
and
On the other
-
there
of
use
to
that
tion.
of
further hoarding
from
these
arrangements with the latter for
others
'
40,000,-
the .past, year
During
wish
ever,
consumption in
advice from Bombay
an
made
it has
issuance of the shares
continu1942
possibility that
might raise consump¬
point where a short¬
age of the white metal would
occur,
and a consequent ad¬
vance, in
price would result.
possibility
,
1941 is
institutions,
second
the Review says:
advices
other
All
expected
increased
We
The
estimate
our
in
associations similar accounts
the
that year
tion to a
and
States
delay
the
says:
the war through
least, it is a
the
silver
Indian
authorized the coinage of addi¬
.
at
3,500,000
to India
Australia.
from
basis
sole
very
has
Ethiopia and East Africa to re¬
place the Italian money intrg-;
duced five years previously.^ „j
from
Hongkong,? the amount being
estimated at 5,000,000 ounces
bv one of our correspondents.
This silver came upon the mar¬
United
-
countries
year
coin
to
believed
Dominions
exported, of which
melted
the
000,000
is
Great
Japan and the balance to Brit¬
ish India. London received ship¬
of
the report
coinage,
ship¬
ments included coinage for the
scant 200,000 ounces went to
ments
ounces
from
It
sup¬
2,500,000
nearly
were
to
the
the
of
pertinent in¬
that in
and April
were
shipped
and exported substantial quan¬
tities of silver during 1941, but
no
amounts
are
ascertainable.
is
Chinese Mari¬
covering
In¬
f
According
from sources other than
production.
Official re¬
time
first
1941
regarding
silver
and
silver."
be in
London, the Royal Mint coined
Supplies
little
But
gold
monetary
the following to say:
ures.
Other
of
total
fore.
Europe,
cover
the
by
25%, the
proportion of silver at Dec. 31,
1941, was 15.7%, which com¬
pares with 15.6% one year be¬
estimate of 64,000,000 ounces
and
set
stead of the required
rest of the world have not been
•
goal
the
value
so
pre¬
but nominal progress
stocks shall
1939,
to
ad¬
Silver Purchase Act that "one-
of
nearly
since
recent
such
sufficient
were
towards
10,000,000
ounces.
Statistics for newlymined silver pertaining to the
our
in
Nevertheless,
1940's western hemisphere pro¬
obtainable
.than
1941
-in
years.
duction
by
only
available' is
February
such
stocks
and confu¬
Corporation
has
evolved a special procedure for
'paying off' shareholders in li¬
quidating
institutions.
Before
offering shareholders of closed
take'
v
of
short
fell
amount
the
of the United States were much
occurred, and
ounces
total
the
•
as
Accretions to the gold
vent any
increase
in
in
coin
well
as
Treasury and banks.
ditions
an
where
States
The
avoid
To
sion,
closed
the
of
ance
;
Government
Indian
and
ports,
copper,
conclusion, the Review
With
„
figures or even esti¬
covering ; imports,
ex¬
mates
as
part in the construction of ships,
airplanes, ' tanks,
trucks,
guns,
Shells, bombs, torpedoes and a
wide
variety
of
miscellaneous
of the almost total lack of
official
Dec. 31, 1911.
includes
figure
except
the
of
estimate
our
United
of
impossible to
compute
statistically
India's
absorption of silver in 1941 be¬
cause
such
saved
be
; It is likewise stated that "war operating institutions—which they
requirements also are demanding may turn into cash if they so de¬
millions of ounces of silven This sire—or
they may obtain 10% of
metal
is
playing an important their investments in cash and the
been
ounces
year,
decline
a
case
has
scarce
conserve
nickel, aluminum and tin."
In
It
report that
silver
for
occurred both
the arts, the pur¬
to
could
made
of
has
materials
war
an
us.
the
in
substitution
being
such
to
con¬
Mr. Kreutz also'said:
783,-
equipment."
Indian Demand
The
circulation
showed
also
taken
.VV
from the Review: :
noted
is
pose
acquired most of Burma's pro¬
duction
and
some
4,000,000
and under
agreements.
acquisitions of 1941, added
This
the
is
open
market
inter-government
70,000,000 ounces; Can-*
22,000,000 ounces; >' Mex¬
ico, 79.000,000 ounces; Central
America and the West Indies,
4,500,000
ounces;
and
South
America,
28,000,000
ounces.
The output of all these coun¬
in
following
It
in industry and
875,000 ounces from Canada.
Also, it is believed that India
ada,
tries
silver-
the
of
and the balance of 70,-
States,
,*
necessitated,
sales.
to
ounces,
for
the
we
follows:
as
-
no
currency
by
the
American
people, since no specific Gov¬
ernment
purchases' of
metal
The
although
ounces,
amount seems large
other'. metals
withdrawn
demand
were
*
"the
200,000 ounces was represented
by foreign silver purchased in
also quote:
silver produc¬
203,500,000
tioned
000
which
tutions
377,000
Sweden,
ounces;
an
of standard
However,
record-breaking
formation
ounces,
tion of the western hemisphere
*■
the
total since
68,200,000 ounces from last
year's
purchases.
Domestic
ores
accounted fo>r
69,700,000
offered.
estimate
We
000
cash
make
to
through reorganizations or merger.
amounts were
Switzerland,
follows:
as
of
ounces
was
banks.
buying program, and a decrease
production
under an agreement with the
Canadian
Government,
plus
such amounts of other foreign
were
dollars
period
same
8,600,000
the
of
amount of Canada's
as
for
acquisitions
139,900,000 ounces, the
at
inauguration
partment not only absorbed all
newly-mined American silver
at 71.11c. per ounce pursuant to
the law of July 6, 1939, but
also bought at its day-to-day
From the Review
abroad.
tina'tion and the
*
hesitated
tributions to stabilize other insti¬
consumption
The countries of des-
'
>
smallest annual
silver
States
United
estimate
We
shut off from-the United States.
,
subse¬
De¬
not
industrial
for
interest i*
of
The figure of 3,135,-
quently.
four
Corporation has handled, he said'
speedy action to majke
payment of insurance, and it has
it has taken
properly be considered as
may
ex¬
question of silver consumption
for coinage is involved in this
the
to
also
is
the form
in
silver
u p o n
conform
amount
1941
a
'■
■
last
Asia, Africa and Australia was
35c.
'
;
first
year
partment of Commerce reports
Showed certain exports which
cur¬
Between Jan. 1
during this
silver
Purchases
States
our
official
1939, it is inter¬
esting to note why this agree¬
ment should have caused any
advance in the market price.
Because
of war conditions,
the silver output
of Europe,
since July' 10,
of
*' S
i
■
It
additional
j
"
rate
that
year's estimate
of Treasury silver holdings 'at
Dec. 31, 1940, in order to make
the
the
U. S.
the
During
of
months
$bl,500,000, equivalent to 44,500,000 ounces of newly-coined
metal.
;V
:
to
essential
items
needs, but how much
used
is
not
dis-
was
closed.
V
for
fractional
of
war
silver
wide
a
*
during 1941, we wish to
chases
revise
at
their
of
production
variety
Y
the jewelers and sil¬
were busily engaged
30,
1941,
the .'-"ounces,' Finland, 38,000 ounces;
value of
subsidiary silver in \ Portugal,
16,000 "ounces.
We
are
circulation (this excludes nick¬
advised that the trade in
els and pennies)'increased by Y. Mexico absorbed about 2,000,-
Treas¬
time.
'
*
'
Before
quoted by the Treasury on the
day of purchase.
Inasmuch as
the Treasury's buying rate was
not raised above the 35c. fig¬
ure
which had been in effect
Government
by
demand
the
and strength to the nation's home-
financing structure and increased;
public confidence. In each of the'
seven liquidation cases which the'
November
and
United States Government pur¬
the Mexican
direct from
silver
the British
time to
United
quota of newly-mined Mexican
.
caused
was
and sales taxes.
from
monthly
a
of
refined
fairly freely in India
ment sold
purchase by the Treas¬
Department of
ury
in
pansion
in
trade,
increased
popularity of vending machines,
for coinage purposes.
In
addition, the Indian Govern¬
provided
which
and
versmiths
attributable to defense
was
ury
United
the
tween
England
:.
which developed during
the year, and which, according
to
the Director
of the
Mint,
to
shipped
was
sold to
was
in price was
agreement beStated and
advance
the result of
■
regarding foreign industrial
silver
consumption.
In
-
rency
London
during the year, of which a part
was
used to satisfy the trade
demand when market supplies
ran
short, and a larger portion
silver
The Review goes on to say.
;
basis
tremendous
*
informa-
little
but
y
tion
:
•
United " States
amount
Government
Indian
quotation at 343/4c
balance
24-hour
the
have
We
'
.
Demand'
;
considerable
A
remaining at that fig¬
the
for
ure
a
"
-
.Industrial
-
Reviewing the record of the
Corporation since its establish¬
by Congress in 1934, Mr.
Kreutz declared that it not only
has fulfilled its first obligation of
safeguarding investments by the
public, but has brought stability
ment
work.
war
-
,
,
28, when it advanced
35V8C,,
for
!
try was considerable, the ne¬
cessity to operate our mints on
China.
agreement
that in
New York the market was quiet
and steady during tlie year with
the
were
ounces
may
be at¬
to metal taken from
1,500,000
Republic, the Dutch
Although the amount of for¬
eign coinage done in this coun¬
larger than Japan's
production for seven
the excess of about
is
estimated
for
East Indies.
permitted
through July, and
during
this ' period
7,832,000
ounces were received.
As this
of silver*, for
industry to a figure above the
Treasury's buying rate."
"The
Mexican
agreement and conse¬
quent
developments,", the
Re¬
view notes, "cons ncuted the only
feature
States
United
the
into
increase in
an
price
copper or other metals under
priorities; and a rapid increase
in the
employment of silver
supplied
Liberia, the
possessions' of
Curacao
and
Surinam, and the Netherlands
early part of the
subsequent supplies
were taken by the Government.
Imports of silver from Japan
but
year,
annual meeting on Jan. 22.
demand
for
articles
silver; a growing sub¬
stitution
of silver for nickel,
States
coins
Dominican
the
in
ket
substantial
purchased in 1940 and
newly-mined metal.
United
native
direct sale tos>
by
the United States Treasury of any
ural
The
the Review,
"Under such circumstances," says
from
Loan Bank of New York at their-
made of
'
1941 !
in
ounces
£
public
:
1-peso and 20-centavo
pieces, but the silver came out
According to the 26th annual Review of the Silver Market,
by Handy & Harman, of New York, "less than, half of the
production was available to industry in the United
States and Canada—an industry which, due to war influences, .had
increased its consumption of silver for the year to the astounding total
80,000,000 ounces."
paper
to make
issued
"the
of issuing
notes for tne needed expansibn
of currency.. Mexico used only
world's 1941 silver
of
Thursday, February 5, 1942
THE COMMERCIAL & FINANCIAL CHRONICLE
570
the
stockholders of the Federal Home
Philippines. In a message sent to
General
MacArthur,
the Pres¬
ident said:
Congratulations
nificent
stand
your men are
on
the mag¬
that
making.
you
and
We are
watching with pride and under¬
standing
Speeches,
MacArthur
are
thinking
birthday.
and
you on your
•
honoring
-were
of
General
also .made in' the
Senate and the House.
~"r
Volume 155
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4042
-with
sabotage
him
not
to
methods
The
group.
in
commanders
report
C.
Short,
laborate
for
failing
to
coordinate
•
de¬
manders
measures
for
"errors
judgment"
"commanders,
the
•success
of the attack.
commanders, the
•added, showed a "lack of
the
of
in
•vested
•'
"evaluate
his
Each
command
of
the
after the
the out-come
of the investigation.
The
Commission's report also
■surprise
feet
to
shortly
•
attack pending
„
with
respect
said
that
while
in
there
material
and
meet
equipment to place the forces
war footing for any extended
"period of time, these did not af¬
a
fect the
take
:the
critical fact of
appropriate
available."
means
to
the
of
causes
the
Japanese
report,
were: Japan's disregard
of inter¬
national
law relating to a war
declaration; restrictions on Amer¬
success
attack,
according
to
the
ican
counter-espionage; emphasis
in the warning messages on the
probability of Japanese action in
the Far East and on anti-sabotage
and non-receipt of the
measures,
Based
its findings of fact
upon
reached
Commission
the
fol¬
lowing conclusions:
military
power
essential to
of the nation is
success
in
war
and
requires: First, the coordination
of the foreign and military pol¬
icies of the nation; and, second,
the
coordination
of
the
opera¬
tions of the Army and Navy.
2.
The Secretary of State
of
patrol
similar
shore
Navy,
-in
the
both
should
have
manned
and
supplied
ammunition, and a high
these
been
of
in
aircraft
effect.
conditions
ing the War and Navy Depart¬
ments in close touch with the
the
them respecting the
probable termination
of negotiations with Japan. ,
advising
and
course
■-
3.
The Secretary
of War and
the Secretary of the Navy ful¬
filled their obligations by con¬
ferring frequently with the Sec¬
of State and with each
other and by keeping the Chief
of Staff and the Chief of Naval
and
informed
of
the
the negotiations with
of
course
significant im¬
plications thereof.
4.
the
and
Japan
The Chief of Staff and the
Operations ful¬
filled their obligations by con¬
Chief
of Naval
the
by
orders
chiefs'
the
Navy
to
warn¬
tics
for
take
between
the defenses
of
was
other
the
fact
and
of
in
on
should
not
have
fense
assigned
then
in
inherent
and
in
Commander
as
\
5.
•
The
Chief
with
of Staff of the
command re¬
sponsibility by issuing a direct
in
order
connection
with
his
-warning of probable hostilities,
in the following words: "prior
hostile Japanese
to
action you
such
directed to undertake
are
reconnaissance and other meas¬
ures
6.
as
you
deem necessary."
The Chief of Naval
tions fulfilled his
sponsibility by issuing a warn¬
giving a direct
Commander in
Chief, Pacific Fleet, in the fol¬
lowing words: "This dispatch is
ing
and
order
to
be
to
by
the
considered a war warn¬
ing"; and, "executed an appro-
intended,
have
been
substantial
failed- to
dispositions to
attack.
an
it
too
to
the
the
that
failed
the
commanders
take'
to
measures
would
warn
have
success
were:
States
of
-
,,
to
such
laws
and
cus¬
curities
prevented
the
Far
sabotage
Failure
ment
to
relating
East
and
anti-
on
measures.
of
to
the
Hawaiian
7,
1941,
the
attack
the
morning
the
officers
devel¬
of
Dec.
and
en-
"
in his reply of Nov. 27
of Staff's message
the Chief
of that date, nor
reported the
otherwise, had
measures
taken by
him, -and the transmission of
two messages,concerned chiefly
listed
were
ber
to
men
both
of
services
present in sufficient
arid
were
in
fit
num¬
condition
perform any duty.
Except
-a
negligible number, the
use
of intoxicating liquor
on
for
exception
of
funds
our
the
matter
of
such
a
of
materials,
war
basis
that
the
on
borrower
will be able to turn out for the
Government
Third,
of
the
industrial groups
$1,133,000,000 or 56% of
corporate offerings.
In¬
dustrial
issues
while
or
railroad
other
from
to
$349,000,000
figures for 1941
dicate that utility financing
,
The
period,
shown in
industrial and
Issues
of
while
the
Kleeman
or
ing
in-
declines
of
"other"
railroad
new
is-
securi¬
ties
were
comparative 1940 periods
the
somewhat higher than
first
nine
months
_
their
the
proper
con¬
form of taxes.
the follow¬
announces
appointments
as
Assistant
LeRoy
T.
Tanfield,
Managers:
was
amount
them
tribution in
issues
amounted
of those
who,
if the Government is to receive
27% of the total,
and
our
to maintain their earning power,
to
amounted
clients
while not
now primarily engaged in
war
work, must necessarily continue
among
with
effective
must look after the
we
financial requirements
first
ranked
most
ability to repay our advances.
stock issues less than 2%. Pub¬
issues
the lowest cost,
question as to his
at
without
and
over
utility
the
equipment
preferred
stock
com¬
6%, and common
issues,
prised
In
Here
obligation is to aid
financing of the manu¬
the
facture
corporate securi¬
interest-bear-?
ing
securities
accounted
for
almost 92% of total corporate
sues.
securities.
Our second
in
alone, fixed
17%.
as
question of sound¬
no
merely
quantity.
Turning to
lic
is
ness,
of
the
.
Non-receipt by the interested
parties, prior to the attack, of
the warning message of Dee.
7, 1941.
on
there
is
1937.
1940
General,
Department.
'
20. When
Government
issues.
new
percentage
the
with
series,
were
manding
oped
this
'
-
Depart¬
measures
offi¬
■
slightly higher than the 1940
figure, it is approximately the
same as has prevailed over the
entire
period covered by the
•
message
and
in the War Department to
observe
that
General
Short,
to
investable
Obviously, our first duty is to
buy an adequate amount of
se¬
$7,719,000,-
98% of total
or
the
had
or
aggregated
Although
War
the
reply to
1940.
almost double that of the same,
.anti-sabotage
instituted by the Com¬
cers
neither
the
rect
the first
interestbearing
$547,000,000
in
the .warning
messages on the probability of
aggressive ^Japanese action in
ef¬
000
total
Emphasis
of
been
the
contributory
to
of the Japanese at¬
effective counter-espionage..
still
of the attack
failure
suc¬
in
war
in
as
Fixed
ties
Restrictions which
to meet it.
15. The
for the
toms.
dispositions prior to the
time of its anticipated receipt
fective to
causes
'Disregard of international law
and custom relating to declara¬
tion of war by the Japanese and
the adherence by the United
make
which
Mr. Kleeman said that the
1940, while the
and
amount
situation.
-;
at
be
the
of the attack.
tack
in view of the
use,
of judgment were
19. Causes
at Che
would
late
1941.
years.
$22,000,000 eleemo¬
He described these functions
issues — likewise were
approximately
of
the
same follows:
Each
of
errors
'
Opera¬
command re¬
destination
time
fact
they
such
the effective
warnings and orders previously
issued.
If
the
message
had
its
Large Deposit Gain
Arthur
synary
properly to evaluate the
cess
time,
Dec. 7, 1941, was but an added
precaution,
in
view
of
the
reached
Army fulfilled his
and
suitable
floated
amount
issues
in
These
Hawaiian
a.m.,
Colonial Trust Shows
to
nine months of
their
failed
warning message, of
intended to reach both
7
purposes.
institution, soundly and in proper
remaining issues—consisting of proportions, into the three chan¬
nels open to bankers during the
$4,000,000 foreign government
foot¬
field
totaled
municipal
bank's most important problem is
security offerings totaled $757,—and will continue to be—to di¬
000,000, a figure fairly close to
to
meet
periods, of
deficiencies
the
1941
amount which
iod in 1940. State and
out
carry
of
an
the
plans
make
14. The
in
for retirement
S. Kleeman, President
of the Colonial "Trust Co., New
$5,073,000,000, ac¬
York City, told the stockholders at
counting for 64% of the new fi¬
nancing in 1941. Corporations their annual meeting on Jan. 21
issued $2,029,000,000 of securi¬ ;that the institution has enjoyed a
growth
in
deposits,
ties in the first none months substantial
$16,654,000 at the end of
of 1941, which compares with from
$1,686,000,000 for the same per¬ 1940, to $19,382,000 on Dec. 31,
under¬
measures
responisibility
the
manders
readiness to be prescribed.
7,
of¬
during the first
Bonds and
amounted
the
the
cash
agency issues
guaranteed by the Government,
the
the
Chief, Pacific Fleet, and Com¬
General,
Hawaiian
Department. •
••...
18. The Japanese attack was
a complete surprise to the com¬
decision of the responsible com¬
manders
as
to
the
state
of
Dec.
debt,
other
000,000 of 29% of net proceeds,
consisting of $481,000,000 for
plant and equipment, and $94,000,000 for working capital. Trib
remainder of $31,000,000 or un¬
der 2% of net proceeds, was
ap¬
plied
to miscellaneous
other
of
States Government;
including U. S. Savings and De¬
manding
by
affected
of
stock. New money
accounted for $575,-
purposes
the United
defense
the other to
positions
necessary
war
funded
payment
debt, and 31/2%
;v
securities
of
of
of preferred
statis¬
months
intended for that
This included 63% for
repayment
3V2%
for
in excess of any year since
1936. Offerings of securities by
dereliction
a
respecting
intent
of
and
them
Army and
Washing¬
a
ing for
extended
time,
but
these
about
responsible
commanders
respect to such defense.
on
issues
$7,884,000,000,
for
action
cooperative
it
effect
in
effect,
demonstrated
on
the part' of
each a lack of appreciation of
the
responsibilities vested- in
in personnel, weapons,
equip¬
ment and facilities to maintain
all
first nine
being
of
should
them
the
■"■•'
New
duty on the part of each of
the
deficiencies
were
defense of the Hawaiian coastal
the other to the
in
the
1941:
transmitted
seriousness
13. There
commanders
orders sent by
the
of
commands
cooperating with
each other,, and with their su¬
periors,
respecting the joint
frontier; and each knew of and
concurred in the warnings and
given
regarding
say
was for re¬
indebtedness and
retirement of stock, $1,388,000,000 or 70%
of total net pro¬
ceeds
l.
,
is¬
corporate
1941,
of
purpose.
of
$1,995,000,000,
each othef under the provisions
ton.
and
sulting
to
as
"Furthermore,"
says,
months
taken by
action based upon the warnings
and to adopt measures enjoined
retary
Operations
cooperate
-
"the sta¬
offerings include
new
during
of estimated
use
of
total
was
terest
with
in
was
of-
offerings only, whereas the
ing
appropriate
required
by the imminence of hostilities.
The attitude of each, that he
was
not
required
to
inform
himself of, and his lack of in¬
state
None
issues
new
from-
payment
-/v.,'".
The Commission has the follow¬
,
'
of
nine
measures
maintained for
or
all
cash."
Commission
•
;
then
warnings
that the responsible
failed to
consult
reason
the
for
tistics
and
meaning
commanders
inaugurated
of
part
principal
proceeds
sues
"constitute
only
fered
for
with
been
readiness
the Commission notes
them not to consult and confer
the
net
raised
securities,"
the
other issues.
The
this
on
28). "Registered
im¬
most
commanders
27
joint
additional
artillery
located
fleet
figures
and
(the
November and ap¬
our
issue of Jan.' 1,
Dec. 7, and the
obligation under the system of
as
Harbor,
of
Commission-,
fered
Nov.
Pearl
have
available
the
curities..
to
and
of
in
ful¬
by
re¬
several
for
registration reflect
registrants' intentions to sell se¬
our
private place¬
present year in- >
$348,000,000 of utility
in
eluded
1933
regularly
month
latest
actual
ings^ and
appropriate action,
as
bat¬
Army
the
been
years
statistics
a
view, how¬
prevalent, did not relieve
of the
directions
to
Army
shore
well
vessels of
every
The
East.
-
17. In the light
by the
batteries
anti-aircraft
on
Far
Pacific Fleet and
maintained;
the
as
have
naval
portant outpost.
warn¬
the
been
of
which
leased
Act of
sibility for the security of the
Navy and the in¬
anti-aircraft
Securities
in
and
Corporate
issues, $129,000,000 of industrial
issues, and $40,000,000 ;of rail
the
the commanders of the respon¬
of
,1940.
under
the
1941,
1941,
28%
privately placed, against
ments
peared
27;
corporate
in
32% in the first nine months of
that
offerings
new
Of total
offered
distinct from the statistics of
securities
effectively ;• registered
existence of such
•
issued
explained
of
period.
were
are
page
their part,
have
Nov.
none
cover
of
the
of
further
statistics
the
comply
given
them
1. orders
date
is
these
subject
be
Operations
Nov.
27,
1941, been complied with, the
aircraft warning system of the
Army should have been oper¬
ating;
the
distant reconnais¬
should
with
to
necessary
Naval
air
Fleet,
cooperate
the meaning of
received
and
the
It
Com-
Chief, Pacific
and
Chief of Staff and the Chief of
of the
the
coordination
the
in
orders
sance
of
circles, and in
J the public press, that any im¬
mediate attack by Japan would
morn¬
such
not
was
envisaged
ing messages.
international situation and fully
-
the
on
gency
12. Had
in
confer
tary
required to meet the emer¬
was
obligations by keep¬
his
filled
7
teries
Effective utilization of the
1.
forces
naval
shore
•Dec. 7 warning message.
the
the
ing of Dec.
Among the contributory
•
with
failure
largely from a, sense
security due to the opinioii
prevalent in diplomatic,;-mili¬
envisaged
the warning messages.
11. The state of readiness
in
failure to
measures
adequate*
emergency
it
financing in the
monthly basis. For the past few
a
months in its current release.
of
in
to
command
not
was
the
the
ever
Army
Hawaii
on
•
of
resulted'
10. The order for Alert No, 1
the
by all issuers
1940
under
the emergency.
of
that
announced
new
years,
bonds
with
warnings and orders issued on
and after Nov. 27, and to adapt
and use existing plans to meet
de¬
were
personnel,
taken
the volume of
gives the figures for the first
respect to
•
ficiencies
had
>
warnings
orders received by him. ;
measures
the
to
he
States
October, November and Decern- <*>
ber, 1941, sirice the Commission
warnings
;
:
failed
-
Commission
on
to
question of putting into ef-J
and
adapting their joint
confer
Exchange
the Commission has presented the data only once a year in
its Annual Report and then it was on a fiscal year basis
(year ended
June 30). The next release on these statistics in
February will cover
actions
mander
upon
defense plans.
9. These
commanders
relieved of
was
confer
the
appre¬
seriousness
the
to
was
and
on
16. The
com¬
manders
report
these
Securities
United
manding ." General,
Hawaiian
Department,
and
the
Com¬
do,
of
The
■
the
plans to release the statistics
and
prepared plans
which, if adapted to and used
for
the
existing
emergency,
would have been adequate. •
:
8. In the circumstances the
so
For First fline loaibs oMS4l
alarm
and
requirements
obliga-i
responsibility
failed'- to.
and
to
their
of
would
Security Offerings
"
.
that what he had done met the
,
,
responsibilities
them"
^situation."
the
said,
•
Both
ciation
tion
for the
causes
the
on
population,
against sabotage only, and re¬
ferring to nothing else, tended
toriead General Short to believe
the -Hawaiian area,
in
fulfillment
in
The
by
report
the effective
-were
4
readiness.
war
of
blame
which
civil
take
the
priate
defensive
deployment
preparatory to carrying out the
tasks assigned."
:
"
?
7. The
responsible
com¬
despite
re¬
peated warnings from the War
Pnd
Navy Departments of the
;need
to
SEC Reports On
failure to reply to his message
of Nov. 29 outlining in full all
—
col¬
to
and
fensive
the
placed
thet>
Hawaiian area, Admiral Husband
E. Kimmel and Lieut. Gen. Wal¬
ter
not
the
the
investigating
responsible
•
of
report
special commission appointed by President
inquire into the facts relating to the Japanese attack
of Dec. 7 on Hawaii and the responsibility for the resulting damage
at Pearl Harbor was handed to the President on Jan. 24 by Owen J.
Roberts, Associate Justice of the U. S. Supreme Court and head of
the
arid
measures
The
Roosevelt to
warned
to
illegal
sabotage
or
against
espionage,
,
which
resort
571
Rockefeller Center Office; George
j Onderdonk, Madison Avenue Office;
John
J.
Downes,
William
Street Office; Joseph Sullivan and
Kennedy, Kingsboro Of¬
Everett
fice.
known
Mr.
Kleeman
that
at
the
also
makes
organization
of
1941, the amount of corporate
I
Credit Manager, was
elected a
securities privately placed ag
Vice-President; Frank S. Beebe,
gregated $516,000,000, compared
with $478 000'000'in'the same formerly
Secretary, was elected
iHia.ouu.uuu in tne same
Secretary
and
Treasurer,
and
Harry C. Stoddard, formerly As¬
preceding evening did not sistant Trust
Officer, was made
affect their efficiency.
Trust Officer of the
the
21.
Subordinate
commanders
company.
The company's statement of con¬
superiors' orders
without question.
They were dition, as of Dec. 31, 1941, was re¬
mot responsible for .the state of ferred to in these columns Jan. 15,
readiness prescribed.
page 224/
executed their
.
J
THE COMMERCIAL & FINANCIAL CHRONICLE
572
Thursday, February 5, 1942
those workers thrown out of work'
II. S., Britain Sai
Op Three Boards To Handle
Materials, Kaiiilioiis- mi - Shipping
that President Roosevelt
Churchill have established^ three
The White House announced on Jan. 27
and British Prime Minister Winston
assignment, shipping
adjustment and raw materials.
The members of the boards are in¬
structed to confer with representatives of the other "United Nations,"
particularly Russia and China, in order to.provide for the most effec¬
Anglo-American boards to deal with munitions
of their
utilization
tive
joint re-1®"
said that the new set-up provides
(1) "planned and expeditious"
for
utilization
of
(2)
sources;
material
raw
re¬
pool for
common
a
the "entire munition resources" of
chief
of
division of the
Board,
fullest
the
will be
Committees will be formed
2.
similar
manner
the
to
Agreement.
Pacific
War Produc¬
both in quantity
priority, whether to Great
all assignments
and
Britain and the United States or
United Nations in
the
of
resentative and Sir Clive Baileau,
other
Director of the British Purchasing
accordance with strategic needs.
Commission in the United States,
In order that these commit¬
3.
who will
tees
the
as
act
British member,
Lord
instructions : from
on
Minister of
British
Beaverbrook,
Assignments
Board %ill be Harry L. Hopkins,
the President's special assistant in
charge of tne defense aid program,
as the civilian chairman in Wash¬
Munitions
the
ington, and Lord Beaverbrook in
the
policy of their respective
governments, the President will
The Combined
Shipping Adjust¬
ment Board will have as members
Rear
Admiral
Emory S. Land,
Chairman of the U. S. Maritime
Commission, and Sir Arthur Sal¬
in
War
Trans¬
White
House
of
Minister
British
make
the
of
text
The
will
co-ordination of
the United Nations war effort,
the President and Prime Min¬
ister Churchill have set up three
boards to deal with munitions
further
To
and
ment
The
materials.
raw
of
Junctions
adjust¬
shipping
assignments,
boards
these
are
outlined in the following state¬
subcommittee
with
confer
Union
the
the
boards will
representatives of
of Soviet Socialist
Republics, China and such other
Nations
United
the
of
are
as
to attain common pur¬
necessary
and provide for the most
effective utilization of the joint
resources of the United Nations.
poses
A
planned
and
of the
utilization
expeditious
material
raw
of the United Nations
resources
in the prosecution
of the war.
To obtain such a
utilization of our raw material
resources in the most efficient
is necessary
speediest possible manner,
hereby create the "Combined
and
we
(a) Be composed of a repre¬
sentative of the British Govern¬
ment and
representative of the
a
The
United States Government.
will
represent
and act under the instruction of
member
British
Supply.
The
board shall have power to ap¬
of
Minister
the
point
staff
the
carry
necessary
(b)-Plan the best and speedi¬
est development, expansion and
use
of the raw material re¬
under the
or
of
control
the
jurisdiction
two
in
chairman
representatives of the State
Ministries
Production
or
agencies to attend meetings.
Combined Shipping Adjustment
Board
1. In
will
of
the
two
deemed
be
countries
be
to
pooled
The fullest information will be
interchanged.
Owing to the military and
physical facts of the
situation
around the British Isles, the en¬
tire movement of shipping
ain will continue to be directed
by the Ministry of War Trans¬
port."'' ■
..
"
3. Similarly, the appropriate
authority in the United States
..
movements
of
ping
shipping,
other
of
allocations
and
United States
the
direct
to
continue
or
powers
ship¬
under
United States control.
adjust and con¬
cert in one harmonious policy
the work of the British Ministry
and the ship¬
of War Transport
authorities of the United
Government, there will
ping
States
forthwith
established
in
Ship¬
ping Adjustment Board, consist¬
ing of a representative of the
a
Combined
United States and
representa¬
tive of the British Government,
who will represent and act un¬
der
the
a
instructions
of
the
British Minister of War Trans-
port.
5.
y/,'.
A similar adjustment board
will
be set up in London con¬
sisting of the Minister of War
Transport and a representative
of
the
United
States
Govern¬
6. In both
govern¬
such plans.
Such recommenda¬
tions shall be carried out by all
make
parts of the respective govern¬
by
will
the executive
cases
be exercised
solely
the
appropriate
shipping
in Washington and by
the Minister of War Transport
in
London.
collaboration
In
of
the
United
of their
raw
with
Nations,
material resources,
collaboration with the
interested
nation
or
nations,;
formulate plans and recommen¬
and,
in
dations for the development, ex-
pansiori,
fective
purchase-or other- ef¬
use
of
their
terials.
laws
He
raw
ma¬
State
territorial
and
inadequate
are
and
should receive
workers
tional
that
"addi¬
an
suggested
with the
ment
than
more
administrative
curtailment
consumption
of
but
covering
':y.
■
the
prosecution
of
the
have already thrown thou¬
sands of persons out of work.
Eventually these workers will
detailed
Reversion Jobless
President Roosevelt asked Con¬
gress-on Jam 20 for
an
tion of
appropria-r
$300,000,000 for unemploy¬
ment
compensation
benefits
to
herewith,
recommendation
half
contribution
their
dollars
billion
rates
be¬
of small benefit disburse¬
cause
Only eight States have
regular sessions of the legis¬
latures this year and only five
other
States
have
already
of
sessions
special
Securities
shares
such
in
on
period
June
July 1938, through De¬
1940, were reported by
classes of reporting persons,
including
officers,
directors,
and principal stockholders. Of¬
ficers
not
who
directors
and
were
stockholders re¬
ported a net sales balance of
2,200,000 shares in transactions
aggregating
20,200,000
shares.
principal
Officers
who
directors
and
also principal stockholders
were
reported purchases and sales
aggregating 4,000,000 shares and
a net sales balance of 1,500,000
of
Individual
shares.
stockholders other than officers
the
of
principal
indicated
a
sales
balance of 900,000
000
shares—600,and
1,500,000
purchases
sales—while
principal
than
other
holders
stock¬
individuals
reported purchases of 5,400,000
shares
and
sales
of
7,200,000
the
through
The Commission's
directors
and
for
1936,
January
1938.
nouncement
ordi¬
all
Securities and
on
Markets"
Exchange
in
balances
cember
Exchange
lected Statistics
sales
transactions for the period
from
Division
and continues for the period July
1938,
through
December
1940,
similar data
presented in "Se¬
and
Trading
8,100,000
Research
the
by
of
summary
Subdivision
Statistics
and
securities
The
sales
and
nary
and
companies.
prepared
was
shares.
the
For
an¬
2\z
from July
1940,
years
explains:
1938
2%
from July
December 1940,
there were reported under Sec¬
tion 16
(a) a total of 62,500
the total volume of
changes) amounted to less than
7y2% of aggregate transactions
the
For
the
involving
the
through
December
reported ac¬
quisitions and dispositions (most
of
which were probably
not
effected
on
registered
exr
years
through
1938,
ac¬
quisition of 75,000,000 shares
disposition of 93,900,000
convinced that the best
am
New
shares.
Having Equity Securities
The
trading in stocks
corporations listed on
York Stock Exchange
their
Net
legislatures.
I
balance.1
transactions
ments.
called
sales
net
reported 23,508 transactions in¬
volving purchases of 4,400,000
SEC Reports Transactions
Of Officers Of Companies
reduced
have
58%
con-
I
Respectfully,
their
and
for
the
FRANKLIN D. ROOSEVLT.
transactions
a
transactions
of the
ordinary
with
"-h'"
but the benefits
-
Stock
York
stockholders
war program.
rectors and principal stockholders
present State and terri¬ of companies having equity se¬
torial unemployment compensa¬ curities listed on national securi¬
exchanges to
report their
tion laws furnish some protec¬ ties
and
in
of
The
registered exchanges.
The
of
reported ordinary
and the
on
volume
of
shares. Of the total reports, 83%
of ' the
transactions
involving
with
23%
solution
be
the problem would
national system
of
uniform
a
unemployment
insurance
adequate benefit provir
sions.
Such a system would be
have
I
funds.
mended
such
already
a
in
the
purchases and sales alone (some
stock
counter
in
or
markets.
The
considered
be
in
relations to other social security
legislation, and this would take
than
time
more
emergency
the
present
securities
as
dends,exchanges, conversions,
redemptions, transfers between
total
From July 1938,
compensation laws, so that not
only
employees insured
laws
receive an
may
these
under
displacement
benefit, but employees not now
additional
war
insured under these laws either
because
work
they
employers
or
may
for
small
for some other
also be afforded
protection.
I
suggest that the appropria¬
tion be made in such a way that
the expenditures
trolled
the
by
plans
President.
would
would be con¬
approved
These
provide
more
that dis¬
but in na, event
$24 a week for 26
Such plans would also
wage,
that no displacement
paid to any person
who refuses to accept vocational
provide
benefit
1940,
ported
28,000
chases
holders.
be
training .to better qualify him¬
self for employment in a war
industry or who refuses to ac¬
on
total
on
New
the
Exchange
that
the
1940
in
was
1%
than
of
stocks
all
exchange. In July
of total ordi¬
volume
transactions reported un¬
der Section 16 (a) represented
nary
were
separate
about 41/2%
re¬
chased
pur¬
this
only
proportion was
1
or
2%.
These
52,000 ordinary
(i.e., all transac¬
tions exclusive of the special
transactions noted-above)
in¬
of total shares pur¬
sold on all regis¬
of
most
the
and
exchanges although for
the 30-month period
tered
24,000 sales of se¬
part of officers,
and principal stock¬
on
directors
listed
transactions
listed
distribu¬
through De¬
there
The
of
2%
all registered
volume of re¬
equivalent to less
and
curities
transactions
volved
Ferris Again
Heads
Washington Exchange
the
acquisition of. 16,300,000 shares and the disposi¬
tion
of
22,700,000
shares.
Whereas this was an average of
750 shares per transaction, the
Exnicios
study shows that more
than
90% of these reports covered
annual meeting
less than 1,000 shares each and
that these averaged about 180
Authorized Enlisted
elected
Ferris, of Ferris
Inc., was
re¬
President of the Wash¬
ington
Stock
While
a
small
number
of
ordinary
of
the
sales
transac¬
and
total
shares
involved.
&
Co.,
Exchange at the
held on Jan. 21.
Strength Of Navy And
Marine Corps
Raised
they represented only
portion of the total
purchases in
lots of 10,000 or more shares ac¬
counted for a substantial part
tions,
M.
George
shares per transaction.
by
regula¬
than
weeks.
cember
on
Stock
York
would permit.
Therefore, I recommend that
the
Congress appropriate the
sum of
$300,000,000 to supple¬
ment and extend the protection
now
afforded
by
the
State
and
territorial
unemployment
than
less
trading
on
repre*
ported ordinary transactions in
the exercise of rights, warrants
and options, gifts, stock divi-
affiliated persons and
tions.
effected
not
exchanges)
exchanges.
remain¬
reports covered such
special types of transactions
my
sented
over-the-
-
should
were
registered
der of the
However, per¬
manent legislation of this char¬
acter
which
of
shares represented
exchanges
recom¬
system
of
ordinary purchases and sales of
securities effected on registered
financed by payroll contribuV tions, obviating the necessity
for appropriations from general
weekly
$360,090,003 To Aid
appropriation
attributable to the
two
of
accounted
aggregate
In the
displaced workers,
provided under
these laws are quite inadequate.
Prompt and appropriate action
by the States and territories to
meet this emergency problem
cannot be depended upon, al¬
though they have accumulated
New
represented
about
all'shares bought and
During the 2*6 years from July
1938, through December 1940,
officers, directors and principal
*
-
cur.
industries.
placed
employees
receive in
total weekly benefits approxi¬
mately 60%
of their average
President Requests
most
at
Exchange
meantime, there will be Commission made a public sum¬
widespread distress unless the mary of stock transactions re¬
Federal Government takes ap¬ ported under Section 16
(a) of
propriate action to cope with the Securities Exchange Act of
the situation which is directly 1934, which requires officers, di¬
war
sales.
the
on
32%
civilian
for
succesful
in
listed
sold
which
industrial
required
absorbed
of total
Purchases and sales of stocks
recommended is set forth in the
of
war,
be
28%
letter of the Bureau of the Bud¬
House
plants from the production of
peace-time goods to the produc¬
tion of war materials, and the
drastic
agencies
expenses
Exchange
get transmitted
of
ownership of 9,330,shares—3,400,000 purchases
and 6,400,000 sales—equivalent
to 20% of total purchases and
000
the
balance of the present calendar
Sir:'
conversion
beneficial
charged
temporary and emergency leg¬
The
of the
Representatives:
Speaker
The
purchases and 57% of total
ordinary sales. The 47 largest
transactions
alone,
each involving 100,000 or more
shares, resulted in changes in
ordinary
priation ad indicate that this is
year.
transactions)
ary
I recommend that the appro¬
follows:
The
the
Government.
islation
ordinary
represented 48% of total ordin¬
paid entirely by the Federal
are
The text Of the President's letter
n
by
compensation
whose
earnings, but in
$24, for 26
weeks,
conditioned
upon
the
worker's
willingness
to
accept
vocational training for war work
or
other
suitable
employment.
The plan would be administered
by the Social Security Board.
:
case
out
total
of
plan
responsibility of super¬
the
State
unemploy¬
vising
,
employees
regular weekly
no
be-carried
ment service and is also
displacement benefit."
that the displaced
receive 60% of their
war
tions
ments.
work toward the best utilization
by
reason,
ment.
agency
(c)
forded
The
this'
Federal
budget message.
In order to
4.
power
others
that
now
under the control of Great Brit¬
the recom¬
mendations necessary to execute
and
ments,
Security Board in the
Security Agency.
The
Social Security Board is now
operating directly "all the offices
of the United States employ¬
' of
Social
Speaker of the
Rayburn, the President said
the
present protection af¬
House
reserves
the shipping
principle,
resources
to
out its responsibilities.
sources,
letter addressed to
would,
tion to these
Washington
This board will:
every
Department, the Foreign Office
be
Raw Materials Board."
of
be neces¬
Washington and London may in¬
will
Combined Raw Materials Board
as may
civilian
The
4.
sec¬
a
surveying
keeping in
;'.
sary..
ments.
of
and
by
the work
with
touch
of
capable
branch
every
2.
Members
assisted
be
retariat
or
announcement follows:
in
nomination
similar
a
will
Britain
Great
respect of the committee in Lon¬
don.
In each case the commit¬
vite
port.
civil chairman who
of
Minister
representing Lord- Leathers,
ter,
a
preside over the committee
Washington, and the Prime
will
tee
London.
fully apprised of
be
may
nominate
Supply.
On
administration
These committees will advise on
the American rep¬
as
a
William
materials
the
new
der
and London un¬
the combined Chiefs of Staff
in Washington
Southwest
Board will be made up of
tion
about
information
interchanged. ■ r:
pool,
common
a
Materials
Raw
Combined
Batt,
in
which
in
two countries.
L.
deemed to
United States will be
be
re¬
of Great Britain and the
sources
the United States and Great Brit¬
ain, and (3) pooling the shipping
resources
"in principle"
of the
The
munition
entire
The
1.
The White House announcement
Board
Assignments
Munitions
sources.
cept suitable employment.
by the conversion of industrial
plants to war production.
In a
increasing
strength
from 300,000 men to
of the Marine Corps
bill
A
ized enlisted
to
104,000
signed
was
Roosevelt
the author¬
of the Navy
500,000 and
from 60,000
ident
transactions
pected to be completed
the July
(approximately 1%
measure
on
Jan.
Dec.
7.
had
22
It
on
passed
and
is
Pres¬
by
Jan. 12.
1938 -Decem¬
ber 1940 interval, there were
reported 528 ordinary transac¬
tions of 10,000 or more shares
covering purchases of 7,800,000
shares and sales of 12.900,000
shares.
These - relatively
few
During
the
This
Senate
the. House
considered
on
another
step toward building up the force
of over
1,000,000
needed for
which is ex¬
men
the two-ocean navy
in 1947.
N
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4042
Volume 155
ileporf Met
Of $3,770,000 For Year Ended Bes, 31,
•
The urgency of closing of
Morgenthau poipted out that "the President has said that we must
nine-billion
dollars
new<4>
in
more
whole income, he is, in practi¬
cal effect, in no different posi¬
60,000 planes and 45,000 tanks in
community-property State, Both
of them have the management
revenue" and added "We have
no
right to fall short of that
goal than we have to fall short of
the President's announced goal of
1942."
Secretary Morgenthau, in
his remarks, made before the City
of:
Club
Cleveland, asserted
securities
tax-free
that
tion from
a
possible
from some income
tax, but from all income taxes"
and he declared that "it is high
refuge,
taxpayers
not
opinion, to tax the in¬
and municipal se¬
only the income of
future issues, but also the income
time, in
my
of
come
State
curities—not
those
from
issues
outstand¬
now
ing."
the income is de¬
cases
voted to the family purposes.
provide
"In
.
"wealthy
non-
a
the income and
of
control
and
in both
in
husband
a
community-property
a
State
who
husband
a
earns
a
$10,000 salary is allowed to re¬
port only $5,000 of that salary
his income and his wife may
as
report the other $5,000 as hers.
The two of them together will
total tax of $965. In the
39 other states, of which Ohio
is one, the husband who earns
pay a
$10,000 salary must report
that salary as his income and
must pay a tax of $1,305 on it.
a
The
points brought out by Mr.
Morgenthau were indicated in the
Cleveland "Plain Dealer" of Jan.
25
by J. C. Daschbach, from whose
account we take the following:
The
four
holes
examples of loop¬
Morgenthau used—
that
their
and
annual
cost
the
to
nine
of
out
to escape
states
48
of
citizens
married
the
Thus
able
are
their fair share if the
of the mar¬
load at the expense
citizens
ried
country.
the
in
to
Tax-exempt State and mu¬
nicipal bonds, $200,000.
Community Property systems
in nine states, $55,000,000.
Separate Income Tax Returns
investment income for hus¬
on
band
and
wife, $260,000,000.
Depletion allow¬
Percentage
$80,000,000.
ances,
"I
for the previous twelve months.
dividends totaling $1,210,000 weret>
declared by the Banks as of Dec. American
Loan
sorry
retary told
the
of
equity and the insistent needs
a nation at war.
In spite of
of
all
tax laws
our
of
efforts
our
recent years,
still weakened
are
by loopholes; it is still possible
for a few thousand individuals
to escape
their fair share of the
to pass their share
and
burden
the shoulders of the rest
on
to
of
separating
wife's
husband's
a
distinguished
lows:
legal
families
000
the
position
pay
•:yi' Of the $219,446,000 of Federal
38
"So that
know ex¬
in mind, I
may
you
I have
what
actly
should like to turn now to four
specific examples of tax loop¬
"Under the
vestment
present law, if
four—which
than
more
been* allowed
have
remain
to
the statute books at the ex¬
on
of our
the majority
taxpayers.
j
of
pense
first
"The
tax
on
income,
the income tax
which
both'
and
wife
incomes
pays
husband
securi¬
you know,
existence of tax exempt
At present, as
ties.
the interest from State and mu¬
is
bonds
nicipal
exempt
a
from
This pro¬
Federal income tax.
vision
gives wealthy taxpayers
possible refuge, not from some
but from all income
taxes.
*
*
*
"The Federal
a
took
government last
a
needs
revenue
of the gov¬
ernment have soared beyond all
previous conceptions, it is high
time, in my opinion, to tax the
income of State and municipal
securities—not only the income
from future issues, but also the
income
issues
those
from
now
outsanding.
is
"The
ent tax
existence
this loop¬
of
rates, about $2,000,000 a
band
second
crimination
source
exists
states having what
of
in
dis¬
the nine
tax
is called the
community-property system. In
a community-property State the
assumes
that the income of
the husband belongs
the
either
of which
the hus¬
by
shall
loophole which I
mention
is
against
one
which the
Treasury has strug¬
gled for years without avail. If
you use a machine in your busi¬
that
and
expected
you
machine
be
can
to last for 10 years,
permitted to deduct
are
each year for 10 years one-tenth
of the cost of that machine. Be¬
will probably have to
cause you
husband
and
equally to
wife.
Yet
since the husband has full man.
and- control
of
the
advances
short term advances which
ture within one year,
balance
ma¬
while the
$114,759,000 repre¬
term
advances
which mature up to ten years,
which
on
installments
ap¬
proximating $13,811,000 are due
one year.
Federal Home
within
Bank
Loan
:
made for
advances
one
year or less need
not be
amortized, but when made for
than one year and up to
such advances
a
monthly
standing
total
home
of
and by direct or
obligations of the
States
Government
gregating $857,000.
the
to
Federal
Banks hold
a
ag¬
In addition
collateral held
the
ity,
as
Home
secur¬
Loan
statutory lien on
all stock in such
Banks owned
by the borrowing member
requires that
at no time shall the aggregate
advances outstanding made by
Federal Home Loan Bank
member institution ex¬
any
reasonable
method
of
you
Needless to say, you
permitted to deduct
not
to
than the
more
recover
of the
cost
chine.
ma¬
^
"But you may
that
learn
be surprised to
this
is
not
of
true
mines and oil wells whose
own¬
permitted over the years
ers are
far
deduct
to
your
of
amount
more
than
the
which they
have put into the property for
the
money
conduct
their
of
business.
The so-called percentage
deple¬
tion
provision of the income tax
law allows these companies not
simply to deduct a percentage
cost of
their
wells
and
any
ceed
Banks
cost
has
age of
been
an
until the entire
made
good,
but
arbitrary percent¬
their income indefinitely.
own
times
no
the
amount
mortgages
or
Since
"An oil company
ago
have
which
the beginning
of their
operations
on 1 Oct.
15,
1932
through Dec. 31, 1941, the total
advances made by the 12 Fed¬
Home
Loan
Bank
Houston,
From
$700,000
to
300,000
Amount of
Reduction
19—The
Jan.
tional
Co.,
Co.,
Co.,
The
*
Pa.
Jan.
Osceola
$100,000 to
Curwensville
Bank,
Na¬
Curwensville,
From $100,000 to $50,000
27—Monroe
burg,
East
From
$200,000 to $50,000—
charges totaled $38,000,000
against $26,000,000 in
Valley
Pa.
Run,
$27,500
150,000
Na¬
$50,000
From
to
22,500
——
PREFERRED STOCK
DECREASED
"A"
Amount of
Decrease
National
First
22—The
Jan.
Greenville,
Bank
of
ville,
Pa.
Green¬
$222,750
From
$111,375
to
$111,375
——;
CHANGES OF TITLE
20—Northampton National Bank &
Co., Northampton, Mass.
"Northampton National Bank."
Jan.
Trust
To;
22—First National Bank of Greenville,
Jan.
Greenville, Pa.
of
Bank
National
First
"The
To:
Greenville."
National Bank of Cen-
22—The First
Jan,
treville, Centerville, Tenn.
To: "The First National Bank of Cen¬
to agree with the current
spelling of the word "Centerville."
terville,"
VOLUNTARY
LIQUIDATIONS
Amount
Jan.
Nationaf
First
20—The
$30,000
Bank of Dodd City, Tex
Effective
Jan.
1942
3,
Liquidating Agent: W. C.
McGee, Dodd City, Tex.
Absorbed by: Bonham State
Bank, Bonham, Tex.
Jan. 23—Citizens National Bank
Saint Jo,
in
Effective
1942
Meador,
Jo,
Saint
D.
C.
Agent:
Absorbed by:
tional
25,000
Tex.
13,
Jan.
--Liquidating
equivalent to 11.4% and
10.1% of sales. Total dividends
by these enterprises
were
$24,000,000 in 1940 com¬
pared with $19,000,000 in 1939.
The combined assets of these 38
Path
Pa.
tional Bank of Dry Run, Dry
The
sales reported
Stroudsburg,
29—The
Jan.
The
F. E.
50,000
Na¬
County
East Strouds-
tional Bank of
1939,
Tex.
The First Na¬
of Saint Jo,
Bank
Texas.
out
enterprises
at
From
50,000
tional
1940
paid
to
National
Osceola,
20—The
Jan.
by the group were $334,000,000
in 1940 compared with $261,000,000 in 1939.
Net profits after
in
First
$50,000
The Commission says:
all
$150,000
$75,000
of
Mills, Pa.
&
Bro. Co.,
National
Corp., Neptune Meter
New
Jersey,
Oliver
combined
From
Na¬
River,
Deep
19—The
Bank
Gov¬
ernor Co., Signode Steel Strapping Co., Sullivan Machinery
Co., The Superheater Co., The
Torrington Co., Victor Equip¬
ment Co., Viking Pump Co., Tne
Vlchek Tool Co., The Wayne
Pump Co., Worthington Pump
& Machinery Corp.
The
Bank,
Conn.
River
Deep
$75,000
Jan.
the
end
totaled $341,000,000
of
1940
compared
duction of aircraft, ships,
metal products,
restrictions
the
"Review,"
the
notes
petroleum,
essential
lumber, food and
non-defense
on
business probably will have only
$305,000,000 at the end of
a
short-time repercussion.
De¬
while surplus increased
fense contracts already concen¬
.from $81,000,000 at the end of
trated in the three Pacific Coast
1939 to $91,000,000 at the end
states exceed $6,100,000,000.
In¬
1939,
of
1940.
losses, principal delinquen¬
excess of thirty days on
total advances outstanding
cies in
the
Far Western Business
Advances Further
Dec.
31, 1941 amounted to
Reflecting the impact of in¬
only $34,000 on which there was creased defense work, Bank of
delinquent interest.
America's index of Far Western
on
business
rose
another five points
December, reaching a new top
of 155% of the 1935-39 average,
in
industry reports of the Survey of
wells.
Houston,
of
state¬
liquidation aggregating $765,000 sion, Washington, D. C.
on which the
Banks anticipate
tax
of
200,000
National
COMMON CAPITAL STOCK REDUCED
271/2.% of the gross income from
deduction
to
City
$1,000,000
those very same
a
$500,000
28—The
Tex,
according to California bank's De¬
This
The
Securities
and Exchange cember "Business Review."
Commission on Jan, 24 made pub¬ is a 25% gain over a'year ago. Be¬
lic the ninth of a new series of cause the bulk of factory employ-
permitted
From
Houston,
Banks aggre¬
SEC Report On General
free many times the cost of the
Industrial Machinery
wells which it is operating is
still
Houston,
creases were reflected in virtually
Single copies of this report, as all the departmental indexes. Fac¬
gated
$873,735,000,
against well as reports 1 to 8, may be tory employment rose to 197%
by re¬ of the 1935-39 average, 43% over
which repayments to that date secured without charge
Carloadings rose to
aggregated $654,289,000. Except quest to the Publications Unit, a year ago.
for indebtedness of members in Securities and Exchange Commis¬ 145,
a
new
all-time pecember
eral
may
recovered
to
National
$700,000
no
long
City
with
real estate.
no
mines each year
twelve
$3,000,000
1,500,000
of
Tex.
United Filters, Inc., Pierce
insti¬
Bank Act further
of
Co.
tutions. The Federal Home Loan
paid in by such member on
capital stock owned by it. The
great majority of members are
mutual savings and loan asso¬
ciations which hold share ac¬
counts of individual savers. The
and
Pumps
the
unpaid
which aggregated
$328,283,000,
400,000
National
Portland,
27—The
Jan.
Co., Ingersoll-
Chain
Steel
Myers
mortgages,
balances
First
From
Hem-Werner
Lnik-Belt
Co.,
Lunkenheimer
133,768
by
Corp.,
Tool
Locke
915,000 were on a secured basis
$74,531,000 on an unsecured
basis.
The
secured
advances
collateralized
Bank
Portland,
of
Bank
Fairbanks, Morse
Rand
and
were
Lin¬
50,000
National
26—The
Jan,
are:
Pneumatic
Dec. 31, 1941, $144,-
on
Lincoln,
$4,500,000
Corp., Hoover Ball
Bearing Co., Independent
and
out¬
advances
of
From $350,000 to
;-r:
23—First
Jan.
Motor Parts
on
fair
allowing
nischfeger
quarterly basis.
or
the
Of
Bank
■
•
20,000
Na¬
Nevada, Reno, Nev.
From
$600,000 to $1,000,000_^___
Co., Gar Wood Industries,
Inc., Gardner-Denver Co., Har-
require that
be amortized
Continental
of
&
Home
Federal
the
Loan Bank System
this group
Fairbanks Co.,
the Rules and Regu¬
of
lations
to
a. new
tional
Equipment
Co., American Chain & Cable
Co., Inc.; American Machine &
Metals, Inc., American Pneu¬
matic
Service
Co., The Aro
Equipment Corp., Binks Manu¬
facturing Co., Blaw-Knox Co.,
Byron Jackson Co., Chain Belt
Co., Chicago Pneumatic Tool
Co., The Cincinnati Ball Crank
Co., Dodge Manufacturing Corp.,
Dresser Manufacturing Co., Tne
long
and
21—The
Jan.
National
Weslaco,
From $30,000 to $50,000
coln, Neb.;
Allen Electric and
of
sented
500,000
First
Weslaco,
$400,000
figures for only
The 39 companies
registrants.
included in
Dec. 31, 1941, the
machine at the end
of 10 years, this deduction is a
buy
~
agement
Bank
financial
Orleans, New
From $1,500,000
ments include the
$104,687,000 represented
United
final
on
guaranteed
the wife.
or
"The
to deduct
year.
law
received
of the
hole costs the Treasury, at pres¬
A
many
amount of income all
are
first step toward
remedying
this
situation
by
stopping the issuance of tax-ex¬
empt Federal securities.
Now
that we are at war, now that
the
instances, than
having
the
same
in
family
capital.
income tax,
year
investment
of
sum
rates are
progressive—that is, because the
higher the income the greater
is the rate of tax—a family in
ness
continued
the
is
a
each pays a
the separate income. Be¬
cause
holes—and I could name a great
many
Loan
Home
consolidated
New
of
Tex.
Jan,
( to
undivided tions, Viking Pump Co., did not
■'/;/>L:'-7•
file financial data for 1940 so that
ten years,
husband and wife both have in¬
Bank
corpora¬
primarily
engaged
in
Ore.
covers
to
$67,500
20—The
Jan.
transferred
more
vastly different taxes.
9
Clear¬
$202,500
$2,000,000
Bank
in the
manufacture of general industrial
the
two
virtually
having
less tax,
*
*
reserves
tions
No.
From
Orleans, La.
to
comparison.
Report
profits.
Regarding the Banks' advances
Mr. Smith reported:
and
that
manner
a
trans¬
for contingen¬
and
ence
Clearfield,
17—The Hibernia National
Bank
cies; $13,481,000 paid in dividends machinery whicn had securities
to the United States Government;
registered under the Securities
$3,928,000 paid in dividends to Exchange Act of 1934 at Dec.
31,
member institutions, and $5,152,1940.
One of these 39 corpora¬
from the income
economic
same
have
*
to
to
$1,746,000
reserves;
ferred
fol¬
transferred
$6,078,000
as
Pa.
Jan.
after
which has been distributed
they get from salary and wages
such
Corporations.
beginning companies and for the industry
of their operations through Dec.
group as a whole in uniform tabu¬
31, 1941, aggregated $30,385,000 lar form which permits easy refer¬
income—as
investment
Listed
at
field,
of the Banks from the
com¬
us.
...
Banks,
Bank
County National
$270,000
payment of statements, expressed both in dol¬
dividends and setting aside legal lars and
percentages, as well as
reserve
requirements, amounted surplus statements and financial
to $1,019,000. The total net income robos are
presented for individual
the method of
I refer to
Amount of
16—The
Jan.
*
31, 1941, resulting in the declara¬ These reports cover the calendar
tion of dividends totaling
$2,004,- years of 1939 and 1940 and extend
000 for the entire year.
During earlier reports which generally
the year ended Dec. 31, 1941, the covered the
period 1934-1939. Bal¬
net profits of the Federal Home ance sheets and
profit and loss
munity-property privilege alone
however, reach a still
more widespread form of avoid¬
ance.
De¬
COMMON CAPITAL STOCK INCREASED
$3,419,000
Mr. Smith also pointed out that
of
this
Treasury
announcement made Jan. 29 by Everett Smith, financial repre¬
sentative of the Banks. This compares with net income of
would not,
—in
to say," the Sec¬
his audience, "that
present tax structure still
falls short of the requirements
am
of
removal
is
partment:
an
outstanding
"The
information
from the office of the Comptroller
of the Currency,'
$3,779,000, of which 20% or $756,000
the legal reserve as required by law, according
transferred to
was
treasury at present tax rateswere:
following
ended Dec. 31, 1941 amounted to
-y-
•.
•
of the
rest
The
The net income of the 12 Federal Home Loan Banks for the year
"loop holes" in our taxation system
by Secretary of the Treasury Morgenthau on Jan. 24,
at which time he pledged himself to fight for the speedy recovery
of any defects in the tax laws which may injure our "National
Morale."
Referring to President Roosevelt's budget message, Mr.
stressed
have
National Banks
12 Federal tag Loan Banks
Secretary
was
573
'ment here is engaged
in the pro¬
high. Electric power production,
despite the influence of blackouts,
reached the index point of 152
compared with
fore.
132 the year be¬
The "Review" says:
industries other than
Western
manufacturing
worry
be
not
will
ment
are
Priority
booming.
such
in
similarly
unemploy¬
much of
basic
a
western
agriculture,
the
mining of copper, lead and
construction and utilities.
zinc,
activities
tail
also
and
as
Re¬
wholesale trades may
expect that 1942
busy year.
will be a
1
THE COMMERCIAL
574
FINANCIAL CHRONICLE
&
Thursday, February 5, 1942
Total Loads
President O'Brien Says
v
;
Total Revenue
1
Chicago Board of Trade
Southern
Needs Paid Executive
paid executive
for the Chicago Board of Trade
was urged
on Jan, 19 by Philip
Loading of revenue freight for the week ended Jan. 24, totaled
817,804 cars, the Association of American Railroads announced on
Jan. 29.
The increase above the corresponding week in 1941 was
R.
107,052 cars, or 15.1%, and above the same week in 1940 was 167,617
Employment of
a
O'Brien, president,
before
dress
the
of
the
in
annual
of the
members
ad¬
an
meeting
grain
change. Mr. O'Brien said that, be¬
cause
of
given
•
/
25.8%.
or
week of Jan. 24 increased
officials,
elected
there
has been weakness in the business
cars,
an
increase
above the preceding week, and an increase of 70,852
above the corresponding week in 1941.
i;
,
15,157
cars
cars
,
of
the
Loading of merchandise less than carload lot freight totaled
post of President even in so-called 149,455 cars, an increase of 2,767 ,cars above the preceding week, but
normal periods, "is no part-time a decrease of 407 cars below the corresponding Week in 1941.
leadership
and
management
the Board. He pointed out that
affair.
condition
this
of
Because
amounted to 162,799 cars, a decrease of 11,343 cars
paid leader¬
below the preceding week, but an increase of 8,266 cars above the
ship—many of our vital problems
;
have been permitted to drift," he corresponding week in 1941. ./•
said. He added:
Grain and grain products loading totaled 47,148 cars, a decrease
\
of 2.340 cars below the preceding week, but an increase of 16,376
"It is time to fight for a better
cars above the
corresponding week in 1941.
In the Western Dis¬
future. Our first step should be
tricts alone, grain and grain products loading for the week of Jan. 24
employment of a paid executive
totaled 31,505 cars, a decrease of 2,361 cars below the preceding
of proved ability, one who is
week, but an increase of 12,951 cai\ above the corresponding week
aggressive and determined. He
in 1941.,. :
''
:
a. '
' X;'."
should be a man who has never
—this
Coal loading
of able,
lack
.
associated
been
the
with
154
323
201
762
653
2,109
1.633
862
735
455
1,219
1,025
..
13,088
11,126
8,598
7,850
6,563-
—
4,538
4,097
3,022
4,120
421
426
345
1,847
1,623
1,610
1,475
2,916
2,734
311
287
199
351
loading amounted to 12,327 cars, a decrease of 1,498
change so that he will be free cars below the preceding week, but an increase of 1,387 cars above
of affiliations, free of any suspi¬ the corresponding week in 1941. In the Western Districts alone, load¬
cion of favoritism, and will not
ing of live stock for the week of Jan. 24 totaled 9,176 cars, a decrease
be conscious
of
psychological of 1,103 cars below the preceding week, but an increase of 1,061
handicaps. He should have an cars above the corresponding week in 1941.
;:-V*
agricultural
background
and
Forest products loading totaled 47,343 cars, an increase of 3,350
business
and
financial know¬
cars above the preceding week, and an increase of 8,335 cars above
ledge."..
.V'
the corresponding week in 1941.
• 'y
'
Live stock
ex¬
—
U:
Line——.T_—
Georgia
Carolina—
Western
Olinchfield.
& Greenville—
&
_
184
.
172
Midland
;__s—
-
Mobile &
Illinois
Louisville
Dublin
Macon,
23,205,
Fred.
Southern
,
25,447
2,182
3,802
3,075
1,607
;
1,366
1,218
;
,
777
377
'
8,074
7,806
17,666
21,792
":'
347
10,149
•
-
23.041
>
474
135
5,377
6,24:0
,
18,132
*
859
808
146
797
862
335
i
"*
134
-
1,476
1,540
"215
7,530
395
,
619
-
-
129,061
110,864
93,414
101,389
83,079
18,157
...
14,895
14,514
14,995
11,278
District—
Northwestern
North Western—,
Great' Western——.......
Chicago, Milw.» St. P. & Pac—_
Chicago, St. Paul, Minn. & Omaha*—;
&
Chicago
502
,
Southbound——
Total—
\
11,219
■
-
Central,
:
Winston-Salem
445
3,046
j 1.238,
449
*'
1,149
444
120
;
System——
Tennessee
6,691
867
84
133
154
Potomac
&
Line—_—-—-
12,694
8,829
,
147
207
3,334
<
2,900
15,769
2,587
21,324
23,773
'■
Piedmont,: Northern,,———
Air
3.833
3,538
22,654
I
Norfolk Southern.—,—.——
Seaboard
603
4,265
Mississippi Central
——i—
Nashville, Chattanooga & St. L.
Richmond
1,815
922
25,495
-
Savannah—-——
&
92
2,672
30,413
,
System™,——
Nashville
&
22
339
77
258
•
'
1,177
494
Ohio__—
Central
681
1,137
543
29
,
1,543
306
509
.954'
41
3,579
1,196
161
928
& Florida——-
Georgia
Gulf,
'
1,255
Southern—
Florida East Coast
Georgia—--—
freight loading totaled 370,444
Miscellaneous
of
of
Charleston &
Gninsville
0.8% above'The preceding week.
cars, or
Coast
Central
Durham
Loading of revenue freight for the
6,608
Atlantic
1941
_
505
818
-
of Ala
R.R.
Birmingham & Coast
Atlanta,
1942
1940
1941.
.
398
1,631
P.—W.
Columbus
lack of sufficient time
a
by
cars,
ex¬
& W.
Connections'
1942
District—
Alabama, Tennessee St Northern.
Atl.
Received from
Freight Loaded
Railroads
.
I
Duluth,,
Missabe
Duluth,
South
^
>
Chicago
2,422
2,219
20.284
19,386,
10,536
8,813
4,754
3,928
4,066
4,549
3,410
1,265
956
1,023
;
:
Range..—.
.'
Atlantic.
& Iron
Shore Si
2,973
2,975
23.775
-
3,683
164
394
■.
621
437
11,131
8,543
488
624
736
I
;
-
Pt.
Eastern—,—
Moines & South
Joliet &
Elgin,
Dodge,
Des
10,456
!'
Green
Bay
'■*
Northern————
550
Superior
Minneapolis
Pacific
146
3,063
'
-500
688
838
63
221
65
1,531
1,522
2,760
1,968
6,148
4,913
5,284
2,657
2,762
11,140
9,602
9,211
4,616
3,622
234
266
—
St.
Paul & S. S. M
Northern
;
2,444
Ishpeming
Louis
&
&
152
8,708
540
;
4,253
285
407
9,445
-
Lake
Minn., St.
"
12,698
Western——,—
&
•'
*.'512
Great
7,956*
9,475
:
,
—;
83
113
82
332
243
2,302
1,658
1,354
2,523
1,641
08-261
81,027
76,819
V 64.105
49,814
23,048
18.332
16,656
9,129
7,282
3,687
3,067
2,607
3,880
2,506
434
Spokane International
457
405
122
128
18,578
15,376
15,525
12,164
8,322
2,652
938
761
9,700
—
.
:
Spokane, Portland 8s Seattle—.
..
The annual financial
of
the
exchange
vealed
loss of
a
it
is
statement
re¬
on
oper¬
ations in 1941. Annual assessments
$462,300
totaling
preceding week and an increase of 1,672 cars above the
corresponding week in 1941.
yyy
\\
levied on
the members. Loss from building
operations was estimated at $184,were
loading
districts reported
All
increases compared with the correspond¬
ing weeks in 1941 and 1940.
1941
Week
of
January
of
January
The
financial
outlook'
-
_
614,171
592,925
Fort
668,241
banks'
bonds
a
and
today
Week
of
January
17—811,196
703,497
646,382
Week
of
January
24——
817,804
710,752
650,187
decline
some
in
—.
.
2,740,055
3,042,70 6
Total
2,557,735
American
Trust
National
Co.
of
Bank
Chicago, told
and
pared with the corresponding week last year.
bers of the Wisconsin Bankers As¬
FREIGHT
REVENUE
LOADED
AND
RECEIVED
Lake
FROM
12,736
2,726
3.412
,'774
897
1,610
1,594
3,574
2,927
3,195.
4,115
2,685
807
*1,151
16
,
834
——
Peoria
1,142
932
1,689
1,550
400
433
1,118
824
941
1,751
1,458
145
119
1.006
513
479
505
339
20
16
15
0
0
27,346
22,061
20,353
9,094
5,681
214
375
339
310
1,312
13,839
13.248
11,904
8,356
,
....
—
(Pacific).—i.—,
Western.
&
—
System
735
506
708
7
8
2.120
1,415
1,242
3,016
1,870
124,408
Utah...—.,.
Western
792
2,215
16,273
Union
Pacific
Pacific
Union
857
1,680
1,934
w
Pacific—
Pekin
&
Southern
101,833
97,039
76,334
56,655
;
.
Pacific—.—
...
CONNECTIONS
'
■
•
sociation
their
at
(NUMBER OF CARS)—WEEK ENDED
mid-winter
As long as
the
Jan. 22.
on
continues, Mr.
Clarke foresees little change in
the price
level of government
bonds but any change that occurs
will most likely be a slight down¬
trend.
war
that
stated
He
because
state and
municipalities will now
drop most public projects, new
municipal offerings will be scarce
and short term municipals, with
their tax free provisions, may be¬
somewhat
come
valuable
more
from
a
enue,
toll bridge and other similar
scarcity standpoint. "Rev¬
issues which depend very largely
on
fees received from gas taxes,
tolls, etc., should" he declared "be
'
scrutinized pretty closely. This is
some extent on all munici¬
true to
investment
of
during the past
nine years when government and
municipal securities generally in¬
creased and their holdings of cor¬
porate
as
declined
bonds
which
2,062
1,873
1,944
'268
200
7,446
7,438
14,087
11,576
1,539
1,464
1,517
2,507
2,274
19
1,364
14
1,235
17
1,280
49
2,219
8,275
7,842
108
& Hudson
Delaware
Delaware,
Detroit
Detroit
Mackinac—
Trunk
Shore
Valley
NT.
Y.,
Sew
2,804
1,627
1.632
273
3,812
13,554
8,774
N.
—
trend
a
3,117
3,105
3,554
_
6,005
1.806
4,698
1,950
5,876
2,167
386
278
43,633
39,950
25
51,998
23
44,536
10,689
9,447
17,000
1,126
6,476
523
8,302
1,030
5,186
364
7,26 7
1,076
5,383
389
6,308
13.867
2,162
6,115
5,800
600
415
521
432
513
419
2,574
15,400
1,493
7,427
7,228
49
357
784
727
1,063
569
5,821
4,780
Shawmut
12,516
1,881
6,641
Rutland
-
Lake Erie
37
313
571
5,581
2,367
1,178
1,901
1,067
12,240
10,257
4,037
3,395
4,305
3,668
174,202
158,955
151,216
216,279
181,229
601
579
421
1,108
1,066
33,396
29,810
3,191
2,964
2,120
23,431
1,290
18,397
1,789
300-^
1,697
6,958
10
8
16,577
13,091
far
as
government and corpor¬
ate securities
are
-
the
next
Kansas
year
begin¬
Ikron, Canton & Youngstown
ning July 1, the government will
have to raise about $38,000,000,000
through financing, he said. De¬
Cambria
fense bonds and sales
.
Central R.R. of New Jersey
ment
use
trust
funds,
as
to
govern¬
well
as
the
of tax anticipation notes, may
Baltimore
Ohio
Si
Lake
&
Bessemer
Erie—
Cumberland
Ligonier
&
Pennsylvania
Valley
Seashore
Pennsylvania
System
is easy
surance
to absorb a large part of this
debt. It is very possible that the
upon
treasury may have to abandon—
at
least
bonds
for
due
a
in
and confine its
tjme—the sale of
1972,
for instance,
offerings to
what shorter maturities."
Island
Reading Co.
Union
(Pittsburgh)
Lines
-
.
4
4
1,886
7,062
701
Penn-Reading
$20,000,000,000. It
to see that banks and in¬
companies will be called
300
1,866
8,332
—
Cornwall.
Long
least
320
Indiana
&
event, "it seems the government
will have to raise, through bond
at
_
Buffalo Creek & Gauley
absorb 15 to 18 billion, but in any
sales,
...
&
Midland
&
Missouri
156
2,179
2,727
2,325
2,391
Quanah
Acme
&
Louis-San
Louis
New
&
1.484
2,078
1,729
402
370
1,069
1,035
690
703
387
203
Pacific..
111
3,355
15,249
13,588
137
.....
V
'
/
4,595
13,684
374
•
2,898
10,371
190
135
6,147
5,064
1,859
7,915
6,908
101
9,597
....
203
406
117
4,039
17,910
Southwestern—:
&
Texas
1,100
•
603
4.802
Lines..—....
Francisco—
Texas
1,044 '
439
Pacific—;
St.
2,311
2,764
1,446 '
156
...
Arkansas...
St.
354
1,547
2.407
Madison
Missouri-Kansas-Texas
1,908
252
2,587
338
Valley..—
Missouri
■:
129
2,451
.
y
3,621
Arkansas—
&
Litchfield
79
,
•
3,973
3,174
8,129
7,240
5.266
5,100
3,435
4,158
4,030
2,840
6,797
4,687
...
109
133
113
40
62
■■y>
Pacific
Wichita
49
7
22
44
370
53,884
40,846
3,230
Orleans
Falls
&
.....
Southern—......
'
*1
Weatherford M. W. Si N. W
Total
62.805
""Previous
——
figures.
■
2,655
*,
■
52,811
...
—
■'
43,065
■
»
1
•
■
»
:
>.-v-
—-—:—-—
—.——.——
Fabricated Sfructura! Steel
Bookings And
Shipments Higher In 1941
New
orders
for fabricated structural steel booked during De¬
nearly 30r000 tons less than the, tonnage fabricated
shipped-that same month, according to reports received by
the American Institute of Steel Construction.
Shipments have ex¬
ceeded bookings ever since last August.
Total contracts closed dur¬
ing the year 1941 were 2,296,954, as compared with a yearly aver¬
cember
668
533
64
317
129
811
1,888
79,984
16,597
19,902
4,021
314
160
709
1,292
68,858
16,380
19,282
3,56 5
292
175
524
1,024
61,306
14,232
17,858
3,486
19
58
2,641
1,884
56,358
25,035
3,928
10,063
-
35
39
2,700
1,502
46,359
20.181
3.353
7,701
were
and
of 1,347-,343 during the previous ten
years.
The shipments during last
backlog contains orders
on
December totaled 176,12B tons.
The
hand scheduled for fabrication during
January, February, March and .April, 1942, amounting:to 626,026
tons, which indicates that the industry will maintain its present
rate of production during this period.
Following is the complete tabulation of bookings ■ and ship¬
ments, showing estimated total tonnage for the entire industry* as
reported to the Institute:
—Contracts Closed—
1941
January
281,235
...
Shipments——
1941
1940
81,689
•
"
1940
110,919
164,590 ,* '
Maryland
Total
178,106
157,415
1*40,736
116,280
173,559
98,882
206,072
128,321-
170,161
95,915
April
142,470
February
March
Western
218,018
179,884
189,751
116,317
191,905
115,617
214,756
158,658
158,782
73,780
126,815
109,744b
194,940
'122,468
225,494
128,658
240,942
189,251
204,085
217,738
184,043
141,945
182,593
May
June
Pocahontas
Chesapeake & Ohio
25,447
22,260
23,718
10,856
9,811
Norfolk
21,078
20,316
19,623
6,773
6.190
4,436
5,271
4,557
2,029
1,646
&
Virginian
Western
-
July
District-
...
August
September
October
50,961
47,847
47,898
19,658
—
November
December
some¬
155
3,222
2,303
Southern.—.
City
Louisiana
age
concerned.
fiscal
Northern
Kansas, Oklahoma & Gulf—...
Allegheny District—
In
;
International-Great
55
he predicted will continue
Total
182
Lines
6,303
39,446
—
Coast
2,803
552
6,130
-
Pittsburgh, Shawmut & North
Pittsburgh Si West Virginia
St
2,023
1,458
7,812
5,767
Y„ Chicago & St. Louis.
Susquehanna & Western—
Wheeling
3,131
1,646
9,584
12,648
-
Lines—
Pittsburgh & Lake Erie
Pere
Marquette
Wabash
134
1,795
9,431
49,078
:—
——:
&
4,752
121
1,622
9,867
3,394
Ontario & Western
Pittsburgh
5,374
4,539
16,406
9,888
196
1,846
9,764
Si Hartford
H.
2,903
5,562
—
Central
York,
188
12,316
—
Montour—
York
9,368
219
369
Western——
Monongahela.—....
flew
10,217
238
13,279
Central
Maine
5,430
9,562
2,525
Lehigh & Hudson River
Lehigh & New England
Lehigh
6,88 1
9,517
Line——379
Ironton
&
Toledo
...:
Grand
6,642
14,838
Toledo
&
Srle
..
& Western—,
Lackawanna
Si
Detroit,
.—
75
2,450
11,334
314
..
Central Vermont
N. Y.,
Clarke traced the trend
bank
Indiana^..
Central
1,368
•
Maine
&
Chicago, Indianapolis & Louisville,—_
551
606
1,600
608
Gulf
4,670
Island
Burlington-Rock
Received from
Connections
1942
1941
—
—
Aroostook
Bangor &
Total Revenu®
Freight Loaded
1941
1940
8,551
Arbor_____
Boston
1942
District—
Eastern
inn
N.
pal bonds."
Mr.
Railroads
District—
Southwestern
JANUARY 24
Total Loads
meeting in Milwaukee
5
1,178
City—
Northern
Western
'
3,072
2,041
Denver
&
Total—
mem¬
Western—
Missouri-Illinois
Nevada
North
9,435
2,796
841
■
Terminal—.
Toledo,
holdings, of municipal and corpor¬
The following table is a summary of the freight carloadings
ate securities, James H. Clarke,
for the separate railroads and systems for the week ended Jan. 24,
Assistant Vice President of the
1942.
During this period 113 roads showed increases when com¬
Grande
Salt
Worth
Peoria
their
Rio
&
Illinois
2,635
10.825
2,968
Southern.——
&
&
3,110
13,289
Eastern Illinois
Chicago St
711,635
increase in
government
further
holdings
of
to
Burlington & Quincy..—„
Chicago & Illinois Midland—^
Chicago, Rock Island & Pacific..
676,534
10
..
Garfield—
&
Chicago,
737,172
3
Week
1
points
Bingham
Denver
1940
District—
Western
Top. & Santa Fe System—
Denver
More Government Bonds
—
Alton—*—.———
Colorado
1942
Expects Banks To Hold
Central
Atch.
amounted to 14,185 cars, a decrease of 692 cars
below the preceding week, but an increase of 571 cars above the
corresponding week in 1941.
Coke
282.60 for the year.
.J
Total—
the
above
$1,446.27
loading amounted to 14,103 cars, an increase of 1,207 cars
Ore
stated
!
•
246,910
146,379
-
161,354
•
97,157
200,509
203,124^
119,087
203,026
127,120
'134,858
142,834
153,201
146,992
176,126
155,526
2,251,089
1,515,543
17,647
Totals
2,296,954
1,748,144
.
-
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4042
Volume 155
575
Treasury Asks Travelers
To Refrain From Taking
Co-operation
;
.Engineering construction for week (Jan. 29), $221,694,000, climbed
sharply to the highest weekly total reported-since Aug, 7, 1941.
Documents Abroad
I
;
public
of
the
This
traveling
tion with the enforcement of
74%
is
volume
the corresponding
asked by the Treasury
Department on Jan. 18 in connec¬
was
above
week ago,
a
and
124%
higher
than in
week last year as reported on Jan. 29 by "Engin¬
News-Record." Public construction, also the highest since
69% compared with a week ago, and 232% above
year ago.
Private awards are 172% higher than in the precede
ing week, but 54% lower than in the 1941 week.
eering
last August, is up
sec¬
a
tion 3
(c) of the Trading with the
Enemy Act, which prohibits ex¬
The week's high volume brings 1942 construction to $628,780,cept under license the carrying of.
any form of. tangible,communica¬ 000, an increase of 7-%% over the five-week period last year. Private
tion into ,or out of, the United awards, $51,121,000, are 71% lower than in the period last year
States.
V'.'V•'//] but public construction, $577,659,000, is 41% higher as a result- of
the 81% gain in federal work... State and municipal awards, $80,To avoid delays in making con¬
559,000,'are 40% below last year.
;
,
nections and possible embarrass¬
Construction volume for the,;] 1941 week,, last week, and the
ing incidents, Treasury officials
current week follows:
gave the following advice to trav¬
Jan. 30, 1941
elers:
J
1. Refrain from Carrying with
you
Public
foreign trips any docu¬
they are absolutely
on
absolutely
necessary to carry maps, plans,
blue
prints, specifications or
similar
documents
with
you,
*
present them
pointed out that the regu¬
was
lations
issued
under
the
Act
in¬
highest level since July 10, 1941. | In addition to these two classes
of work, waterworks, sewerage, bridges, industrial and commer¬
cial buildings gain over a week ago; and bridges, commercial build¬
for
the
translation
of
statements
in foreign languages and that ex¬
film,
posed
developed or unde¬
veloped, must be examined by the
Customs
can
officers
for
Subtotals
in each class of construction
week
the
are:
waterworks, $2,107,000; sewerage, $2,495,000; bridges, $2,270,000;
buildings, $3,496,000; commercial rbuilding and large-
industrial
housing,
private
$11,566,000;
public
buildings,
earthwork and drainage, $16,420,000; streets
and unclassified construction, $63,506,000.
$115,526,000;
and roads,
$4,308,000;
capital for construction purposes for the week totals $55,-
New
481,000, a gain of 68% over the volume reported for the 1941 week,
The current week"s new financing is made up of $2,491,000 in cor¬
porate security issues, and $52,990,000 in state and municipal bond
The New York City bond sale for various construction pur¬
sales.
accounts for $50,000,000 of the state and municipal volume.
construction financing for the, year to date, $559,914,000.
poses
New
licenses
before
of 1941 by 496%.
tops the $93,988,000 for the five weeks
issued.
be
drainage top their respective 1941-week
and. earthwork and
scale
cluded
written and
typewritten
documents, that time is required
187,231,000
The index is built upon 40
for each country in so
basic commodities and the list is the
far as possible.
Each commodity is
weighted uniformly for each country, according to its relative im¬
same
portance in world production. The actual price data are collected
weekly by General Motors overseas operations from sources de¬
scribed as "the most responsible agencies available in each country,
usually a government department."
The commodities involved in¬
clude "a comprehensive list of several groups, including grains,
livestock and livestock products, miscellaneous foods (coffee, cocoa,
tea, sugar; &c.), textiles/fuels, metals and a list of other miscellaneous
materials
(rubber, hides, lumber, newsprint, linseed oil,
Weights assigned in the index to the different commodity groups are
follows: Grains, 20; livestock and livestock products, 19; vege¬
as
table fats and other
foods, 9; textiles, 12; fuel, 11; metals, 11; miscel¬
laneous, 18.
The
values.
It
17,307,000
109,717,000
military building construction boosts the
Increased emphasis on
ings,
Customs, where it will be determined whether the communica¬
tion may be licensed.
;
11,599,000
27,947,000-
public building volume to the highest peak since Aug. 7, 1941, and
shipway and airbase awards boost unclassified construction to its
to the office of the Collector of
as
17,156,000
204.538.000
33,688,000
—
——
long in advance
of departure time as is possible
v
$221,694,000
6,324,000
121,316.000
•61,635,000
Federal
■
When you find it
2.
Jan. 29, 1942
$127,640,000
37,199,000 V
construction
and municipal
State
ments unless
essential.
_A~——t-construction '
Private
Jan. 22, 1942
$98,834,000
construction
Total
General Motors Corp. and Cornell University, which prior to the
European war had collaborated in the publication of a world com¬
modity price index, have resumed issuance of international price
statistics, but on a different basis than before the war.
Instead of a
composite index of world prices, these organizations now are pub¬
lishing the information only as individual country indexes.
indexes, which
(August, 1939=100)
Aus-
Can-
tina
tralia
ada
land
143
purchased by the Surplus Market¬
ing Administration during Decem¬
ber, under the general buying pro¬
gram for Lend-Lease and other
needs, the Department of Agricul¬
said
ture
Jan.
bn
This
26.
was
about
$20,000,000 more than the
total purchases during November,
it was explained. December buy¬
ing brought the total of all pur¬
chases to more than $600,000,000
for the
period March 15, when
operations
purchase
panded
ex¬
;
Saturday
Jan. 24
Jan.26
118
120
116
113
112
131
132
112
118
120
144
116
113
114
131
136
109
118
118
120
145
115
112
114
132
140
109
118
119
120
150
115
111
120
132
144
109
116
120
121
145
116
110
122
135
153
111
113
139
August
September
October
——
-
123
122
145
117
110
120
158
114
November
—
113
125
124
146
118
111
118
142
164
118
December
——113
126
126
149
120
111
119
144
168
118
114
127
126
150
7-120
111
119
144
7172
120
——
—„
1041—
January
February
114
126
127
150
121
113
119
147
171
120
119
122
129
150
123
114
119
154
176
122
—121
121
180
125
—„
March-
April
May
July
August
125
115
119
156
134
rl52
129
117
120
156
189
137
155
131
119
121
155
1Q3
7121
7-141
rl56
7-136
7-125
138
————_
150
120
121
rl35
1,
—
131
126
133
——
June
121
7*142
157
<,138
36/6
82/6
"Cable & Wire ord———
£68V2
£68V2
£681/2
£68>/2
Central Min. & Invest—
£13
£13
£ 13
£13
40/-' 1-
40/-
40/--
40/-
34/6
34/6
34/3
34/6
127
123
156
196
122
145
rl57
138
7-130
7123
156
203
143
140
123
143
rl58
139
132
126
156
207
7-140
rl42
124
143
158
141
133
124
157
209
141
141
October
122
143
160
138
123
157
143
7*159
143
7*160
—
^
November
—
December
£8%
£81/2
£8'/2
74/9
74/6
74/6
74/3
14/6
14/6
14/6
Distillers Co
:
Electric & Musical Ind.-
Closed
25/9
25/9
25/9
25/9
Imp. Tob. of G. B. & I._,—
"London Midland Ry
£18%
25/9
25/9
25/9
25/9
133/9
133/9
£181/2
£18%
76/-
76/-
76/-
76/-
£6%
Metal Box-—————
£ 6ya
£6%
90/-
90/-
132/6
£18%
133/—
£ 18%
132/6
Rand Mines—iwi!—
:
•
:
76/-
£6%
90/-
£6%
£8i/s
£8%
90/-
£8
Vickers--.,
14/6
88/9
50/6
50/-
51/3
50/9
50/-
32/-
...
31/6
31/9
32/-
31/9
16/9
16/9
16/9
tions
the
i
-
£41/2
£4 Jo
opera¬
for the month were con¬
siderable
quantities
of
nonfoodstuffs,
including
tobacco,
cotton, corn, and
gum
rosin,made available by the Commod¬
ity Corporation for Lend-Lease
concen¬
fitting well
needs for Lend-
trated food values,
into
current
Lease and other programs.
Silver,.: p.
d
oz.
Monday
Saturday
Closed
168s
Closed
Gold, p. fine oz—
21/2 'fv
—
British
L.
4 '}<>, 1960-90-
The
silver
per
oz.
23%d
168s
168s
£105y4
£105%
£ii5y4
£115y4
3 68s
£82%
£83
£ 105%
368s
£83
168s
£83%
£ii5y4
(in
in
cents)
the
Friday
-23 Mad
:
£105y4
£ii5y4
£105y4
the. Hawaiian terri¬
torial program were bought for
the first time during
Y.
(Foreign)
U. S. Treasury
States
the
on
35%
35%
.
same
35%
35%
35%
...
35%
71.11
71.11
71.11
71.11
71.11
71.11
Fewer Strikes fsi Deeomfeer
Exchange
140
123
157
"159
141
123
157
146
*160
140
124
157
151
*123
147
*160
139
123
157
151
150
Revised
r
The members of this Association represent 83%
activity in the
of the total in¬
figures are advanced to equal 100%, so that they represent the total
industry.
STATISTICAL
REPORTS—ORDERS, PRODUCTION, MILL
Orders
Production
Received
Orders
ACTIVITY
Tons
Percent of ActMtg
Remaining
Tons
Current
Cumulative
528,155
420.639
453,518
137,631
70
71
429,334
-
579,739
449,221
129,466
69
70
167,240
72
Strikes
April
520,907
456,942
193,411 :
May
682,490
624,184
247,644
76
72
508,005
509,781
236,893
79
73
544,221
587,339
196,037
72
73
452,613
162,653
74
73
163,769
72
73
670,473
487,127
470,228
648,611
184.002
79
73.
488,990
509,945
161,985
77
73
464,537
479,099
151,729
71
73
673,446
August
September
—
.
468,870
—
October
November
—
December
70
May
in
•
The
amounted
to
0.25%
with
of
man-days
0.08%
about
in
during
idleness
of
all
total
figures
strikes
in
December
compared
time
-
726,460
447,525
83
602,323
488,993
84
634,684
608,995
509,231
88
807,440
737,420
86
649,031
576.529
64
630,524
578,402
64
839,272
-
857,732
as
follow:
strikes
of
of workers involved in
No. of
in
beginning
strikes
during month-!
—
159)272
572,635
93
83
174,815
159,894
587,498
61
83
169,472
162,889
592,840
92
83
158,403
162,964
584,484
94
83
157,032
163,284
576,529
147,086
133,031
591,414
80
84
164,057
166,781
589,770
98
84
176,263
2
Aug.
9
Aug. 16
Aug. 23
—
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
„
—
-
166,797
583,716
99
84
155,473
176,619
163,915
578,402
98
89
168,256
582,287
100
85
85
67
Nov.
Dec.
4
Oct.
11
159,337
164,374
575,627
99
18
167,440
165,795
574,991
98
25
165,279
168,146
568,161
100
86
170,597
165,420
568,264
99
86
169,585
159.860
576.923
97
86
-
'
5-yr. period, 1935-39
December November
Nov.
!
8
NOV.
147
127
185
-Nov.
22
35,000
42,615
31,899
52,738
Nov.
500,000
1,450,000
458,314
859,534
1,229,731
Dec.
156,394
-
:
...
:
99
87
96
87
554.417
101
87
166,080
567,373
102
87
163,226
553.389
101
88
149,874
„
166,948
535,556
101
116,138
20
27
570,430
550,383
164,875
181,185
13
Dec.
165,397
160,889
149.021
6
Dec.
86
169,111
29
1940
.
145,098
15
300
*1941
„
84
Oct.
1
man-days idle during all strikes
progress
93
159,844
I
1941—Week Ended—
Aug.
235,000
in month
new
„
—m*
98
530,459
—
99
554.417
760,775
175
"1941
Item—
No.
568,264
649.021
743,637
—
Nov.
Averages for
No.
831,991
640,188
December
'
,
Oct.
worked,
1
Dec.
■■
-
82
642,879
—i
—
81
337,022
Oct.
the
November.'
Comparative
70
75
261,650
571,050
659,722
—
—
202,417
548,579
509,231
—
629,863
656,437
...—
-
March
608.521
652,128
January
October
November numbered 300 involving 235,000
workers and a loss of 1,450,000 man-days.
It is> estimated that
nearly half the December strikes began before the declaration of
beginning
71
June
November
124,258
523,119
76
88
88'
1942—WeekEnded— ~~
1934.
The the Commission to eliminate pos¬
X-14A-l(b), sible ambiguities in the rule and
provide a more informative
the adoption of an amendment tq relating to the omission of certain to
its rules relating to the solicita¬ information from the proxy, state¬ statement of the provisions of the
'
tion of proxies under the Securi- ment. It is designed according to rule.,
and
Jan. 22 announced
"160
146
123
dustry, and its program includes a statement each week from each
member of the orders and production, and also a figure which indi¬
cates the activity of the mill based on the time operated.
These
Dec.
on
144
123
give herewith latest figures received by us from the National
September
-
Preliminary estimates of the Bureau of Labor Statistics showed
"Preliminary estimates.
Securities
148
123
145
April
SEC Amends Proxv Rule
The
147
£115%
day has
(newly
program,
Commission
157
Paperboard Association, Chicago, 111., in relation to
paperboard industry.
July
August
December.
handled - under
separate Congressional authori¬
zation, makes needed war-time
supplies available for the civi¬
lian population of the islands.
This
123
Weekly Statistics of Paperboard Industry
We
February
war.
for
139
142
144
1941—Month of—
United
;
N.
Bar
of
price
been:
W.
Thursday
23 % d
Wednesday
23V2d
£83%
Closed
British
31/2%
Tuesday
23 %d
Closed
Consols,
Food and livestock feed sup¬
plies
7-148
145
Preliminary,
March
More than
represent
*209
142
24—
June
ahd
209
157
1'57
1940—Month of—
450,000
pounds
were
bought
there were 175 new strikes in December involving 35,000 workers
during the month. Dehydrated
with 500,000 man-days idleness in all strikes during the month,
foods
save
a
lot of shipping
according to. a report by Secretary of Labor Perkins on Jan. 28.
space
157
123
123
7T43
3—
17———
January
February
purchases of dehy¬
drated, vegetables were made in
December
for the first time
under the program.
124
139
—
*160
Period
Volume
■
144
137
7139
—
Tons
mined)
operations.
*141
7*159
123
£4%
£100 par value.
J-
total
7143
Unfilled
£ 4 Ms
irk previous
•
in
122
,
10—-———
Jan.
Jan.
122
7-142
.;//■'■■;/
16/9
£41/2
16/9
—
vegetables, cereal products,,
The daily closing quotations for securities, &c-, at London, as
various special food com¬
reported by cable, have been as follows the past week:
%
Included
27
Jan.
122
,
rl42
West Witwatersrand
included dried and canned fruits
modities.
20
1942—
74/3
months. Other heavy purchases
and
141
rl37
38/9
14/6
'•
25/6
__
——,
"Per
and
145
'
25/9
Hudsons Bay Company—
Ford Ltd
of
had
6
£8%
Areas——r————
they
.
138
end.:
13
34/3
£81/2
De Beers-'——-—
United MolasSes—!
as
7T30
82/6
Courtaulds (S.) & Co.—
ducts made up the largest group
ber,
129
132
194
£13
.
Cons. Goldfields of S. A._
Department's announcement went
purchases both in volume and
in dollar value during Decem¬
7-155
£69
83/-
Rolls Royce————
Shell Transport--
Dairy, poultry, and meat pro¬
.7T22
—rl40
—
September
36/6
36/6
82/6
36/6
Drugs
Rio Tinto
to say:
Jan. 30
36/6
82/6
Pure
Boots
British Amer. Tobacco—.
started, through Dec. 31, 1941. Tne
on
Friday
Jan. 29
Jan. 28
United
States
120
Jan.
•
Wednesday Thursday
Jan. 27
erland
118
—
Dec.
Tuesdav
den
1041—
■Quotations of representative stocks as received by cable each
Mondav
Swe- Swits-
June
Dec.
day of the past week:
Zeal'd
ico
Java
July
May
Dec.
$90,000,000 worth of
United States farm products were
New
Uex-
Eng-
1940—
Dec.
More than
on prices expressed in the currency
Feb. 2 as follows:
based
Argen¬
Weeks
SMA December Buying
Above $90,000,000
are
of each country, were reported
ties
Exchange
Act
of
amendment is to Rule
3
147.419
140.263
530.459
86
Jan.
10
162.493
166.095
527.514
101
Jan.
17
167,846
165.360
525,088
102
102
Jan.
24
161,713
169,735
514,622
101
102
Jan.
Note—Unhlled
necessarily
pad* I or
equal
or
orders
of
the unfll'sd
filled
from stock,
88
the prior
week plus orders -received, less production,
do not
_tders at the close.
Comnensatlon f«r delinmient renort*. nrrietri
and other ltoms made necessary
adjustments of unfilled
orden.
THE COMMERCIAL & FINANCIAL CHRONICLE
576
ended
NYSE Odd-Lot Trading Labor Bureau's Wholesale Price Index
-The
Securities
Statistics, U. S. Department of Labor, an¬
complete figures nounced on Jan. 29 that following sharp advances in wholesale prices
showing
the volume
of stock to a 12-year peak in mid-January there was a reaction during the
transactions for the odd-lot ac¬ week ended Jan. 24, particularly in the prices of certain farm
SO
a
for the week ended
summary
The Bureau of Labor
Jan. 24, 1942, of
of all
count
and
dealers
odd-lot
products, and the Bureau's index of nearly 900 series declined 0.1%.
specialists who handle odd lots on As in the previous three weeks the principal price changes were for
the New York Stock Exchange,* domestic farm products and foods, which had risen 5.5 and 3.2%, but
continuing a series of current fig¬ which declined 0.5% in the week of Jan. 24, There were continued
ures being published by the Com¬
advances in other prices ranging from 0.1% for hides and leather
mission. The figures, which are products, textiles and metal products, to 0.9% for chemicals ,and
based upon reports filed with the allied products, including fats and oils.
Commission by the odd-lot dealers
The Bureau's announcement further stated:
«nd specialists, are given below:
At this level, 95.5% of the 1926 average, the all-commodity
UTOCK
TRANSACTIONS
FOR
THH
index was 1.8% higher than- in mid-December and is 18% above a
ODD-LOT
.
,i
THE
ODD-LOT
OF
ACCOUNT
AND SPECIALISTS
DEALERS
STOCK
YORK
NEW,
year ago.
ON
led by sharp decreases
Total
for week
—
Dollar value
13.890
_i__—
Number of shares
355,438
13.973,242
;
,
Odd-lot Purchases by
Dealers—
(Customers' Sales)
Number of Orders:
Customers'
short
sales—
302
Customers'
other
salesa-—
12,339
sales—--.'
12,641
Customers'
total
9,423
Customers'
short
sales
Customers'
other
salesa
Customers'
total
304,091
sales-
313,514
10,010,654
,T_.
Eound4ofe Sales by Dealers—
Number of Shares:
Short
^
sales
30
——
Other salesb—
61,310
Total
,
61,340
sales
a
—
111,610
—:
"short! exempt"
marked
Sales
ported with "Other sales."
are
re¬
b Sales to offset
orders,
odd-lot
customers'
sales
and
to
liquidate a long position which is less than
e. round lot are reported with "other sales,"
Lumber
for live poultry in both the Chicago aiid
Week
Movement
Ended Jan. 24, 1942
also averaged lower than for a
cows
production during the
week ended Jan. 24, 1942* was 3%
greater than the previous week,
shipments were 10% greater, new
business
4%
greater, according
regional associations covering the
operations of representative hard¬
wood and softwood mills.
Ship¬
ments were 15% above produc¬
tion; new orders 51% above pro¬
Compared with the cor¬
responding week of 1941, produc¬
tion was 4% less, shipments .-05%
less,
and
new
business
27%
greater.. The industry stood at
164% of the average of production
in
the
corresponding week of
duction.
and
week.
of
159%
average
the
in
same
;•
,
for
production
beans, onions and white potatoes. \ Cotton continued to
advance and is currently quoted at the highest level since the
Spring" bf 1929. Advancing prices were also reported for hay,
peanuts, flaxseed, sweet potatoes and citrus fruits. Notwithstanding
this recent decline the farm products group index was 5% above
a month ago and 38% above a year ago.
except cured pork, followed the break in the
and declined sharply.
In addition prices were
lower for butter and flour.
A marked increase in prices for
bananas largely accounted for a rise of 3.7% in average wholesale
prices for fruits and vegetables. Other foods which averaged
higher than a week ago were powdered milk, corn meal, oatmeal,
oleo and cottonseed oils, pepper and tea. Cattle feed prices ad¬
vanced 2.8% during the week.
Meat
prices,
market
the
corresponding weeks of
1941; shipments were 6% below
the shipments, and new orders
15% above the orders of the 1941
period.
For the three weeks of
1942, new business was 41% above
production, and shipments were
11% above production.
291
496
Farm
12-27
1-25
12-27
1-17
1941
1941
1942
1941
—————
199
545
544
data
Exchange
Received-
Total Number of Reports
1. Reports showing
specialists
for
the
transactions
3. Reports
750
•/£
other
showing
' :K
,;v:
as
—
93
202
24
V
trans¬
off the floor—
showing no transactions
;<v
208
562
actions Initiated
4. Reports
Exchange
1,050
2. Reports
showing otbsr trans¬
actions initiated on the floor—.
77
.
560
Note—On the New York Curb Exchange, odd-lot transactions are handled solely by
specialists* in the stocks in which they are registered and the round-lot transactions of
specialists resulting from such odd-lot" transactions are not segregated from the spe*
cialists' other round-lot trades.
On the New York Stock Exchange, on the ,other
hand, all but a fraction of the odd-lot transactions are effected by dealers ongaged
solely in the odd-lot business.
As a result, the round-lot transactions of specialists in
stocks in which they are registered are not directly comparable on the two exchanges.
The number of reports
ber of reports
in the various classifications may total more than the num¬
received because a single report may carry entries in more than ont
classification.
;:: v:-"
Total Round-Lot Stock Sales
the New York Stock Exchange and Round-Lot
on
Stock Transactions
for
Account
of
Members*
7
(Shares)
Week Ended Jan.. H, 1912
|xy''XXXj)xyy;:,y'y\
Total
4. Total Round-Lot Sales
Short
Other
For Week
.•*•■■■•
sales
sales b
8. Round-Lot
count
of
',
Per Cent
a
*
:
"l.\-x'■■■>• ■'xx"-
•
;-0-':'X.
.i—115,570
'3,036,640
.
Total sales
3,152,210
Transactions
for
the
Ac¬
Members,
Except for the
Odd-Lot Accounts of Odd-Lot Dealers
and
Specialists
1. Transactions of specialists in stocks
in which they are registered
Total
purchases
Short
sales
260,090
sales
Other
Total
sales
63,520
b
223,110
;
286,630
...
8,67
2. Other transactions initiated on the
■;
777;- 7
floor
Total
purchases
Short
sales
157,740
21,650
sales
Other
Total" sales
b
151,640
5,25
173,290
——-
———
floor
Total
purchases-.
Short
95.6
95.0
93.8
80.8
—0.1
+ 1.8
+ 18.2
100.3
100,8
98.8
95.5
72.6
—0.5
+ 5.0
+ 38.2
94.1
92.5
91.2
74.1
—0.5
+ 2.6
115.6
115.7
115.6
102.6
+ 0.1
+ 0.1
-
98,950
—
92.6
92.4
91.5
74.6
+ 0.1
+ 1.3
124,940
—
purchases
3.68
132,840
—
516,780
+ 24.3
Fuel and lighting materials-
7,900
——
b
Total sales
Total
+12.8
92.7
sales
Total
4.
+ 26.3
115.7
Textile products—-—
sales
Other
1941
95.5
.
following
-
.
1-25
1942
93.6
products
Foods--
1-10
1942
Commodity Groups—
the
:
3. Other transactions initiated off the
1942
AH Commodities—
494
The data published are based upon weekly reports filed with the New York Stock
Exchange and the New York Curb Exchange by their respective members.
These
N. Y. stock
N. Y. Curb
reports are (classified as follows:
,
1-17
■!v:JU7l98;::
s
Percentage changes to
Jan. 24 1942 from—
1-24
293
The Commission made available
100)
=
144,000
168,830
week ended Jan. 17:
Sharp increases occurred in prices for lead arsenate, inedible
tallow and for granulated salt.
(1126
106,250,
145,800
245,033
178,430
168,530
108,850
K.
>
—
Reports showing no transactions-
lath, finish and timbers accounted for the advance in the group
Quotations were lower for yellow pine flooring, dimension
and drop siding. Many manufacturers of window glass withdrew
recent price increases at the request of the Price Administrator.
principal
groups of commodities for the past 3 weeks, for Dec. 27, 1941 and
for Jan. 25, 1941 and the percentage changes from a week ago, a
month ago, and a year ago (2) percentage changes in subgroup
indexes from Jan. 17 to Jan. 24, 1942,
3,921,530
177,830
275~500
242,533
————
other / transactions
initiated off the floor.
index.
——
Hides and leather products—
Metals and metal
Short
78.9
78.9
78.9
79.0
72.6
0.0
—0.1
+
103.5
103.5
103.4
97.8
+ 0.1
+ 0.2
+
109.1
108.9
108.1
99.5
+ 0.4
+ 1.3
95.6
95.3
91.7
78.8
+ 0.9
+ 5.2
102.7
102.4
102.3
90.5
0.0
+ 0.4
93,070
———
b —
sales
+ 22.5
102.7
Total
+ 10.1
96.5
sales
——
499,690
;
+ 13.5
17.60
592,760
5.9
109.5
sales
Other
8.7
products——. 103.6
Building materials
——.—
Chemicals and allied products—
goods———
Housefurnishing
Miscellaneous commodities.:
88.1
87.9
87.7
87.4
76.8
+ 0.2
Raw materials.—
95.5
95.6
94.5
92.5
74.9
—0.1
Semimanufactured articles.-
91.8
91.4
91.3
90.2
81.1
+ 0.4
0.8
+ 13.2
And Stock
Week Ended Jan. 17, 1942
+ 27.5
1.8
Stock fijaioa on the New York Curb Exchange
Transactions <«r Account of Members* (Shares)
Total Round-Lot
+ 14.7
+ 3.2
„
+
'
96.3
Manufactured products———
96.5
+
Total
96.0
95.2
83.9
—0.2
+ 1.2
sales
5,685
sales
Other
+ 14.8
Per Cent a
For Week
4. Total Round-Lot Sales
Short
.94.5
94.5
94.1
93.4
82.7
0.0
+ 1.2
+ 14.3
94,5
—
94.4
94.3
93.9
84.4
+ 0.1
+ 0.6
+ 12.0
Total
Round-Lot
All commodities other than farm
products and foods——
469,060
b
JAN.
Total
Cattle feed
—j
Chemicals
Paint
—
and
paint
''Lumber
.
materials——
Nonferrous metals
Other
farm
1.7
Other
leather
Other
products^
Hides
0.8
and
—.
—
-
Hosiery and underwear
-
and
^podltry ___—J__-___
Total
0.3
2.i
Cereal
—'"2.0
products
—
——
Other
*3% less.
0.8
0.1
4,800
purchases
200
sales
sales
Total
9,495
b
sales
1.53
9,695
:
3. Other transactions initiated off the
—————
.Grains
floor '--j—
0.6
" '
.
15,740
Total purchases
0.4
Short
sales
'
0.2
|—!
Other foods
building materials—
12.34
72,635
Other
-
Dairy "products
■
sales
Short
t
Meats
67,725
floor
-
Livestock
4,910
b
2. Other transactions initiated on the
0.1
Decreases
44,510
sales
sales
Total
0.4
0.4
—
skins
miscellaneous.
Ac¬
0.5
0.4
products—
Cotton goods—
1.2
—_—0.9
—
——
2.8
the
purchases
Other
3.7
for
-specialists in stocks
Short
Increases
orders to
stocks was 45% on Jan. 24,
1942, compared with 32% a year
ago.
Unfilled orders were 31%
greater than a year ago; gross
Transactions
in which they are registered
17, 1942 TO JAN. 24, 1942
Fruits and vegetables-.—.
474,745
•
count of Members
PERCENTAGE CHANGES IN SUBGROUP INDEXES FROM
Oils and fats—
gross
sales
1. Transactions of
Supply and Demand Comparisons
were
Total sales
showing:
Revised
3,919.330
—
———
Reports
Preliminary
9,281.900
220,540
,
——-
j/'
-
Among the building materials, pronounced increases in prices
for certain paint materials—particularly tung and linseed oils,
white lead and rosin—and for gravel, sand, and yellow pine boards,
below
stocks
9,280,400
—220,425
Item B-2—Total purchases
—;
Item B-3—Total purchases
272,600
sales
Week Ended Jan. 10
Revised.
i
J:-':
Prices for most types of cotton materials advanced under the
sliding scale ceiling price which is geared to the price of raw
products—
first three weeks of 1942 was 7%
The ratio of unfilled
sales
All commodities other than farm
Year-to-date Comparisons
Beported
round-lot
Short
apples,
reports to the National Lumber
Manufacturers
Association, from
shipments
Exchange has submitted the following corrections:
Week Ended Jan. 3
week ago. Prices for hogs
to
1935-39
Stock
Preliminary
the contrary, were higher. All grains, except barley,
declined slightly and lower prices were also reported for eggs,
The following tables show (1) index numbers for the
Lumber
1935-39
the
Item A—Total
Calves declined 9% and quotations for steers
cotton.
Round-lot Purchases by
Dealers—
Number of shares
that
and lambs, on
livestock
Number of Shares:
Dollar value
New York markets.
and
Odd-lot Sales by Dealers:
(Customers' Purchases)
Number of orders—
amounted
that
on
Average wholesale prices for livestock and poultry fell 2.1%
EXCHANGE
'Week Ended Jan. 24-r-
17
to 168,210 shares, or 17.72% pf the total
Exchange of 474,745 shares; during the preceding'
week trading for the account of Curb members of
212,835 shares was
21.78.%-.of total trading of 488,495 shares.
With respect to the data for the weeks ended Jan, 3 and 10
(see
issue of Jan. 22, page 343 and Jan. 29,
page 488) the SEC reports
volume
Declined 0,1% During Week Ended Jan. 24
Exchange
and
Commission made public on Jan.
Jan.
Thursday, February 5, 1942
Other
sales
b
—
o.l
575
-
20,255
—
Total sales
3,85
20,830
-
4. Total
Total
Softwoods and Hardwoods
purchases
Short
the
for
Becord
ended Jan. 24,
current
week
1942, for the cor¬
responding week a year ago, and
previous week, follows in
thousand board feet:
for the
The Securities and Exchange Commission made public on Jan. 30
figures showing the daily volume of total round-lot stock sales on
the New York Stock Exchange and the New York Curb Exchange
and the volume
Softwoods and Hardwoods
1942
1941
1942
Mills
470
470
-
Previous
Week Wk. (rev.)
Week
471
214,531
230,882
320,887
221,975
230,681
Shipments
254,412
254,539
Orders
335,088
264,567
Production
,
—
Hardwoods
Softwoods
1942 Week
1942 Week
Mills
395
1
'
91
Production
211,424—100^7
10,551—100 &
Shipments
243,370—115':
11,042—105^
Orders
322,892—153(1
continuing
Odd-Lot
-
—
.
——
97,475
—-
b'„—
-
103,160
17.72
Transactions for the Account
Customers'
short sales
other sales «
Total
purchases
Total
0
—
.—-
sales
25,165
25,165
a
Short sales
•
Trading on the Stock Exchange for the account of members (except
odd-lot dealers) during the week ended Jan. 17 (in round-lot trans¬
actions) totaled 1,109,540 shares, which amount was 17.60% of total
transactions on the Exchange of 3,152,210 shares. This
compares with
member trading during the previous week ended Jan. 10 of
1,388,340
,17.71% of total trading of 3,921,530 (revised) shares. On
12,196—118^ the New York Curb Exchange, member trading' during the week
or
sales
Of Specialists
Customers'
of
series of current figures being published by the Com¬
are shown
separately from other sales in these
figures, the Commission explained.
shares,
sales
Total
round-lot stock transactions for the account of
all members of these exchanges in the week ended Jan. 17, 1942,
mission.
sales
Other
Trading On Dew York Exchanges
65,050
5,685
The term
"members" includes all
19,272
regular and associate Exchange members, their
firms and their partners, including special partners.
* Shares
in members' transactions as per cent of
these percentages, the total members
twice the total round-lot volume on the Exchange
members' transactions includes both purchases and
calculating
Includes only sales.
e
w
In
sales, while the Exchange volume
.
,
,.
.
which are exempted from restriction by the
Included with "other sales."
*
Bales marked "short exempt" are Included with
other sales.
b Round-lot short sales
are
„
„n„nA
twice total round-lot volume.
^transactions Is compared with
for the reason that the total of
_
,
,
_
Commission rule#
j
fir::
1
Number 4042 1
Volume 155
THE COMMERCIAL & FINANCIAL CHRONICLE
-
a
lizor; ftssn; Price
The
wholesale
weekly
National
was
unchanged last week.
compiled
index
price
commodity
released
on
Ffe
Moody's
by
Feb. 2,
Rm>
given in
computed
the
a
1
n
1
bond
and
prices
bond
yield
averages
are
Roosevelt's plan for
within the ranks of or¬
ganized labor for the duration of
peace
MOODY'S
(Based
1942—
U.S.
Averages
Feb.
3
Jan.
Yields)
the
Corporate by Ratings •
rate *
Aa
Aaa
Corporate by Groups»
R. R.
Baa
A
Indut
U.
P.
117.16
106.74
116.22
113.70
107.80
91.91
97.16
110.52
113.50
117.17
——^
——
31
PRICESt
Average
on
Corpo-
Bonds
2
BOND
Avge.
Govt.
Daiiv
106.74
116.22
113.50
107.80
92.06
97.31
110.52
113.50
29
116.22
113.70
107.80
92.06
97.16
110.52
113.70
116.22
113.70
107.80
92.06
'-97.31
110.52
113.70
for
116.22
113.70
107.98
91.91
97,31
110.70
113,70
committee
106.92
116.22
113.70
107.80
92.06
97.31 -110.52
113.50
106.92
116.22
113.89
107.80
92.06
97.31
113.70
106.92
116.22
114.08
107.62
110.52
97.31
92.06
116.22
114.08
107.62
91.91
97.31
110.52
106,92
116.22
114.08
107.62
91.91
97.31
110.70
113.70
22
—117.68
106.92
116.22
114.08
107.62
91.91
97.31
110.70
113.50
21
—117.65
106.74
116.41
113.89
107.62
91.77
97.31
110.70
113.50
h 20
—117.61
113.70
210473658
106.92
116.61
113.89
107.62
92.06
97.47
110.70
19
117.60
106.92
116.41
113.89
107.62
92.06
97.47
110.70
17
117.59
,106.92
116.41
113.89
107.62
92.06
97.31
110.70
113.70
16
117.60
106.92
116.41
113:89
107.62
91.91
97.31
110.52
113.70
117.53
106.92
116.41
107.62
92.06
97.31
110.70
113.70
14
117.81
106.92
116.41
114.08
107.62
92.06
97.31
110.70
price of oak flooring more than offset an increase in linseed oil,
causing a very small decrease in the building material price index,
/.vDuring the! week .30 price series included in the index ad¬
vanced and 15 declined; in the preceding wdek'there were 27 ad¬
vances
and 15 declines; in the second prceding week there were
13
117.86
106.92
116.41
113.89
107.62
92.06
97.31
110.70
113.70
12
117.91
106.92
116.41
113.89
107.62
91.91
97.31
110.70
113.70
118.09
106.92
116.61
114.08
107.62
91.77
97.16
110.70
and 12
./
declines.
WEEKLY
advances
37
WHOLESALE
v....,
:
.
.
GROUP
•
-
Oil
Cottonseed
,
23.0*
158.7
158.4
Grains
-
125.8
185.1
> 166.1
121.6
114.8
122.8
121.3
120.5
113.3
113.0
113.0
127.8
127.7
126.3
Commodities,
Miscellaneous
.
130.5
i
Fuels
*■
8.2
Textiles
150.8
Metals
104.0
104.0
6.1
Building Materials
131.9
1.3
Chemicals
120.1
104.0
131.6
113.6
132.0
120.1
Drugs
—
.
112.8
103.9
.3
Fertilizer
117.6
117.4
115.4
Fertilizers
111.0
114.0
119.7
Farm
103.5
103.4
103.4 '
121.8
121.8
119.5
All
100.0
♦Indexes
1941,
77.7.
Combined.,.
Groups
1926-1928 base
on
'
:V*.
.
„
Jan.
were:
■
.
1942, 94.9; Jan. 24,
31,
.'N'/.
.
V;
•
113.89
—
117.94,
—_
114.08
107.62
91.62
97.00
110.70
113.89
116.61
114.08
107.62
91.85
96.85
110.88
113.70
116.02
113.70
107.44
91.34
96.54
110.70
113.31
117.85
106.39
115.82
113.70
107.27
91.05
96.23
110.52
113.31
117.61
106.04
115.82
113.50
107.09
90.63
95.92
110.34
113.31
113.89
in
terior,
its
latest
3,
Jan.
1,
7.
v
*
1
The
1,257,000 tons.
ANTHRACITE
Week Ended-
Jan.
Bituminous coal a—
COKE
BEEHIVE
AND
—
24,
NET
Jan. 24,
Jan. 25,
Jan. 23,
1941
1942
1941
fuel
„11,000.000
11,325.000
9,931,000
1,888,000
1,655,000
1,853,000
—Week Ended
1,656,000
Jan. 25,
Jan. 26,
1942
1941
1929
1,232,000
1,257,000
3,436,000
3,861,000
5.931.000
1,170,000
1,194,000
3,264,000
3,668,000
5,504.000
139,100
112 800
491.400
399,300
16,114
20,475
15,972
for
convenience
purposes
production of lignite,
.
comparison
historical
of
and
c
Revised,
(In Thousands of Net
are
or
COAL,
Jan. 17,
———"
1942
1941
1940
Jan. 16,
average
1937
el92l3
4
4
2
2
310
281
277
104
93
115
114
93
211
162
190
239
1
1
♦
1
1,178
1,315
1,315
102.30
115.82
112.00
100.98
84.30
90.48
106.92
110.70
115.46
YIELD
BOND
Individual
on
Closing
-
Aa
Corporate by Groups
Baa
R. R.
Indus
P. U.
■„
3.35
2.84
2.97
3.29
4.28
3.93
3.14
2.98
„•
3.35
2.84
2.98 7?
3.29
4.27
3.92
3.14
2.98
4.27
3.93
3.14
2.97
3.34
2.97
2.84
3.29
(/)
Illinois
1,513
—
-
3.34
2.84
2.97
3.29
4.27
3.92
3.14
2.97
3.34
2.84
2.97
3.28
4.28
3.92
3.13
2.97
1,435507
448
460
393
68
62
86
116
—-—-
Pennsylvania bituminous
—
.
peace
the
of
2.84
2.97
3.29
4.27
3.92
3.14
2.98
2.84
2.96
3.29
4.27
3.92
3.14
2.97
2.84
2.95
3.30
4.27
3.92
3.14
2.97
2.84
2.95
3.30
4.28
3.92
3.14
2.97
2.84
2.95
3.30
4.28
3.92
3.13
2.97
3.34
2.84
2.95
3.30
4.28
3.92
3.13
2.93
which were
1939, would
"accouplement" of the
labor organizations "with unified
and
competent leadership," Mr.
2.83
2.96
3.30
4.29
3.92
3.13
2.98
Lewis said.
2.62
2.96
3.30
4.27
3.91
3.13
2.97
2.83
2.96
3.30
4.27
3.91
3.13
2.97
2.83
2.96
3.30
4.27
3.92
3.13
2.97
2.83
2.96
3.30
4.28
3.92
3.14
2.97
2.83
2.95
3.30
4.27
3.92
3.13
2.97
2.83
.
3.30
4.27
3.92
3.13
2.97
3.30
4.27
3.92
3.13
2.97
because of wartime circumstances.
3.30
4.28
3.92
3.13
2.97
Mr. Roosevelt conferred
3.34
2.82
2.95
3.30
4.29
3.93
3.13
2.96
2.82
2.95
3.30
4.29
3.93
3.13
2.96
Murray
at
Jan.
and
3,29
4.30
3.93
3.13
2.96
3.30
4.30
3.94
3.13
2.96
and
2.95
3.30
4.31
3.95
.3.12
2.97
2.97
3.31
4.32
3.97
3.13
2.99
3.37
: 2.86
2.97
3.32
4.34
3.99
3.14
2.99
posal.
3.39
2.86
'2.98
3.33
4.37
4.01
3.15
2.99
United Press accounts from Wash¬
:
3.39
,
1941
3.33
4.37
4.01
3.15
2.99
2.95
3.28
4.27
3.91
3.12
2.96
2.86
3.06
3.39
4.47
4.03
3.20
3.08
3.25
4
2.98
2.82
3.42
v
-
2.86
3.34
1942
Low
2.72
2.85
3.19
4.24
3.89
3.03
2.83
•
3.38
-
2.76
2.98
3.38
4.39
3.97
3.18
2.99
3.61
1941
3,
times he offered his counter-pro¬
1940
3,
•
2.86
3.06
3.69
4.84
4.38
3.34
3.13
are computed from average yields on the basis of one "typical" bond (3%fl
maturing in 25 years) and do not purport to show either the average level or tlu
average movement of actual price quotations.
They merely serve to illustrate in a more com
prehensive way the relative levels and the relative movement of yield averages, the lat
ter being the true picture of the bond market.
complete list of bonds used
lished in the issue of Oct. 2, 1941, page 409.
in
latest
t The
ington
will
iasi Debits
debits
ended
week
the
ing
computing
Indexes
these
was
pub¬
28
Jan.
by banks in
centers
with the
compared
der which the
Total
debits
dur¬
the corresponding period
or
year
a
a
year
ago,
and
11%
at
RESERVE
FEDERAL
millions
Federal Reserve District—
Philadelphia
1942
70
67
78
82
32
21
29
47
73
64
88
69
80
66
/50
Chicago
St.
133
26
Virginia-——-——
380
390
307
316
308
483
13 Weeks ended
Jan. 28,
1942
8.734
58.814'
Jan. 29,
1926.
was
556
475
8 042
In
624
10 940
Cleveland
1926,
employed in
was
department of the
was
made
of
manager
the department Dec. 1, 1937.
ra$S32S5*=*
345
5.949
4 816
380
295
5.003
3 971
1,348
22.547
18.217
364
274.
4.9M
3 856
199
J 44
2.818
2,164
341
244
W. J. Pedrick Named
8.975
437
—.
.
Louis
-
City
He
a
December,
MacKenzie
statistical
instruc¬
an
as
tor in mathematics at
6.688
747
—
4.
4.7,04
3 700
289
4,120
3.150
719
12,293
9.906
11.019
8 703
148.877
12K3Q9
4.135
:
229
906
Dallas
a
Following his graduation he
employed by the Cleveland
Board of Education
1941
—
*
the
of
President
Vice
7.429
52 527
—
:
^
Minneapolis
Kansas
1941
3,523
ap¬
graduate
of Wooster College of the class of
bank.
_
1.635
:—:
Atlanta
109
4,522.
——
—
99
15
644
—
York
Richmond
141
.
Jan. 29,
its
of directors at
Mr.
-
W*>°k Ended
Cleveland
111
was
J.
DISTRICTS
dollars)
of
Jan. 28,
32
15
announced on Jan. 29 by
Fleming. President of Fed¬
eral Reserve Bank of Cleveland,
M.
the
BY
(In
55
94
un¬
Of Cleve. Reserve Bank
It
the high school.
there was an increase ofJ&3%.
SUMMARY
;
18
124
formula
a
organizations could
MacKenzie Asst. V.-P.
Assistant
amounted to $148,877,000,000,
corresponding period
other reporting centers
40
7
a
be merged.
bank. Mr. MacKenzie is
the
for
New York City there was an increase of
At banks in
ago.
leading
aggregated $11,019,000,000.
ended Jan. 28
above the total reported for
15
93
draft
to
not
pointed Kenneth H. MacKenzie an
lip 28% Froo Last Yssr
reported
as
weeks
13
37
122
seek
is
in the sense that it
group
peace
that the '-iew
25
committee
regular meeting that day had
13
10
Jan.
on
AFL-CIO
that the board
36
118
in
out
These prices
38
151
pointed
was
2 Years ago
Soston
9
It
STOCK EXCHANGE CLOSED
Mow
125
at which
Jan. 22
on
on
Green
Messrs.
2.85
1942
Low
190
Utah
with
with Mr.
House
2.82
607
814
Meany
White
3.35
—
240
3,402
21
the
7 : 3.36
—
199
567
proposal op¬
posed Mr. Lewis's suggestion for
a merger of the two labor groups
2.96
2.95
830
2,727
that the Presi¬
It is understood
dent in his substitute
2.96
2.95
200
438
April,
2.95
2.82
288
2.2G0
in
2.83
2.82
852.
470
off
an
2.83
3.34
212
2,408
conferences,
broken
seek
3.34
3.34
199
605
two
3.34
155
2,343
negotiating committees
labor
organizations.
standing
These
resumption of
between
the
sought a
talks
3.34
—
—
788
.
17,
the
on
3.34
—
—
——
292
160
Tennessee
Jan.
to
letters
sent
Murray
and
3.34
902
632
in
Green
3.34
204
2,460
Lewis,
Messrs.
3.34
32
and South Dakota—
by John L. Lewis, former
CIO and now Presi¬
of the
3.34
100
New Mexico
vanced
3.34
5
——
to
reported
put forward this plan as a
substitute for the
proposal ad¬
3.35
—
37
•
is
President
The
have
3.34
V
8G7
Michigan
of
Teamsters.
3.34
—
270
Western
Brotherhood
International
the
3.34
140
2?0
and Missouri—
Kentucky—Eastern
The
Workers.
the AFL is made
up of William Green, President of
the
Federation; George Meany,
Secretary-Treasurer of the AFL,
and Daniel J. Tobin, President of
3.34
659
71
Iowa,.——
Machine
and
3
(/)
570
Indiana——
dio
3.34
226
-
of
committee consists
dent of the United Mine Workers.
Prices)
A
be¬
.
group named by
Mr.
Aaa
differences
Philip Murray, President of the
organization and Vice-President
of thb United, Mine Workers; R.
J., Thomas,
President
of
the
United Automobile Workers; and
Julius Emspak, Secretary-Treas¬
urer of the United Electrical, Ra-.
'•
'
•
organizations.,
The CIO
all
jurisdic¬
other
the
head
AVERAGESt
Corporate by Ratings
rate
2,111
212
—~—
onio
113.31
.'.'h-Nh.
434
103
Oklahoma—
Montana
109.79
22
19%
Jan.
Jan. 20,
365
r\
North
Jan. 18
3
Georgia and North Carolina
Maryland
96.54
Corpo'
Bank
373
—
Colorado—.,———-
Kansas
Jan. 10,
1S42
State-
Arkansas and
90.34
14
.
1
BY STATES
—<——Week Ended-
—
Alabama
106.21
to
of
meet
settle
2
Tons)
estimates arc based on railroad carloadings and river shipments
revision on receipt of monthly tonnage reports from district and
of final annual returns from the operators.)
Alaska—.
113.50
the
to
object
sources
117.80
relating
to
to
and
111.62
106.21
AFL
President
tween
coupon,
(The"current weekly
and
109.42
„
d Excludes colliery coal.
ESTIMATED WEEKLY PRODUCTION OF
State
j 95.62
„V—
b Includes washery and dredge coal and coal shipped by truck
operations,
from authorized
89.23
16,904
statistical
20,785
average
Includes
a
145,500
total——
States
106.04
439,500
19.871
Jan. 17,
Beehive coke—
United
Daily
112.00
—
6
Feb.
Calendar year to date-
Jan. 25,
1941
Jan. 24,
1942
1,202,000
production d
Comm'l
116.22
8
1,716,000
1.265,000
I
105.52
-
7
34.776,000 32.599.000
Total, including colliery
fuel b
116.4)
1 Year ago
1942
Jan.24,
anthracite—
Penn.
112.56
9
Feb.
37,055,000
1,833,000
—_
Daily average
97.78
—„——
10
1937
including mine
Total,
92.50
High 1941
jani 1 to date
Jan. 25,
C1942
109.60
TONS)
—
Jan. 17,
1942
(IN
PENNSYLVANIA
COAL.
116.02
—
12
High
SOFT
118.60
——
5
OF
113.31
108.52
19
U. S. Department of the In¬
stated that weekly production of
PRODUCTION.
110.34
26
sylvania anthracite for the week ended Jan. 24 was estimated at
1,265,000 tons, an increase of 33,000 tons (about 3%) over the pre¬
ceding week.
Output in the corresponding week of 1941 was
STATES
95.92
Avge.
,; 13
UNITED
90.63
(Based
31
This
ESTIMATED
107.09
:"
30
in the week ended Jan. 24 is estimated at
indicates a slight decrease—325,000 tons,
output
tons.
113.50
29
11,000,000
or 2.9%-^from the preceding week.
Production in the week of 1941 cor¬
responding with that of Jan. 24 amounted to 9,931,000 tons.
The U. S. Bureau of Mines reported that production of Penn¬
total
net
115.82
MOODY'S
3
99.8
report,
soft coal continues _to hover around the 11-million-ton mark.
106.04
117.06
1940—
2
Division,
coal
110.88
Daily
Weekly Goal ArJ Soke Prodisolion Slaiisfics
Coal
97.47
115.89
1941—
21
Bituminous
92.06
1942—
'
The
107.98
2 Years ago
Feb.
Feb.
94.9; Feb.
1942,
114:08
1 Year ago
99.7
,
116.61
120.05
1941
106.92
117.07
1941
3,
CLOSED
118.10
1942—4.—
Low
EXCHANGE
STOCK
1942:
:v:
.
113.89
110.70
116.61
104.0
.3
Materials
110.70
97.16
Average
106.0
.3
Machinery
97.16
91.62
106.74
112.6
103.1
141.9
150.2
7.1
and
91.77
107.80
106.56
Feb.
71.8
93.4
96.2
84.1
94.2
101.5
110.0 /
156.0
131.5
i.-
Livestock
17.3
1942
186.8
—
-
107.62
114.08
106.92
High
Feb. 1,
1941
91.2
122.7
;
-
Cotton
114,08
116.61
117.95
LOW
73.4
118.5
131.8
121.1
Products
Farm
.
116.61
106.92
117.82
Ago
117.0
...
106.92
118.10
6
Year
Ago
132.7
;
Oils
and
Fats
10.8
Week
1942
Foods
25.3"
*118.00
I-——
1
Dec. 27,
1941
115.8
Total Index
113.89
—
2
Jan. 24,
Jan. 31,
113.70
'.•'•t- 3
Preceding Month
Week
..-'v..
.
.
7
High
Latest
:
"Vi-Uv--'
'
-
,
Bears to the
V
114.08
representatives
the
and
the
tional
113.70
8
•
5
1001*
—
-
.•
9
:
INDEX
PRICE
COMMODITY
—
10
-
[1935-1939
.
":VvEach Group
/■
15
Complied by The National Fertilizer Association
.
'
.
and meats de¬
Butter, flour, potatoes,
of
questions
106.92
in
CIO
113.70
117.38
—117.51
price resulting in the sharpest drop recorded by the
food index since last July.. Despite this decline, the food index is
28% above the corresponding week a"year ago.
A decline in the
commodities.
the
Tne plan cans
of a six-man
formation
113.70
110.52
24
:
the
with
23
24
the
of
Congress of Industrial Organiza¬
by the American Fed¬
106.92
117.21
Jan.
on
board
eration of Labor.
106.92
117.48
■
—
adopted
tions and
106.92
117.47
26
■
creased
executive
117.07
28"^—_
'
was
the
117.32
—_
27
rise in
gasoline quotations.
Small advances were recorded by the indexes
representing the prices of fertilizer materials, farm machinery^ and
war
by
117.08
u——
30
The fuel price, average was slightly higher due to a
miscellaneous
Labor Adopts FDR Plan
For Peace In Wartime
President
following tables:
This index, in the week ended Jan. 31,
1942, stood at 121.8% of the 1935-1939 average, the same as in the
preceding week. It registered 119.5 a month ago, and 99.8 a year ago.
Substantial declines in meat prices were sufficient to counter¬
balance advances in other items, with the result that the all-com¬
modity index remained at the same level as in the preceding week.
The farm product price index was moderately higher due primarily
to increased cotton and livestock quotations, which more than off¬
set a decline in grain prices.
In the textile group, raw cotton,
cotton goods," and cotton yarns continued to advance in price, with
the net result that the textile price index was lifted to a new high
peak.
4
,foody'
^
Association which was
Fertilizer
The
Jl
577
3,211
53,624
48,202
NY Revenue Collector
William
York
J.
lector
Internal
of
of
New
18
Jan.
on
Roosevelt
President
by
Pedrick
nominated
was
> as
Revenue
Col¬
for
211
Texas
'—
—
San
Francisco
•
40
39
35
43
54
74
_
2,037
2,075
1,814
1,832
1,952
1,134
^Northern-
830
771
675
639
G20
762
140
Other
175
Wa.'.hington
West
192
113
143
170
186
133
Other
11,325
11,050
9,654
9,954
10,600
11,850
1,232
827
1,184
1,175
999
1,968
12,557
11,877
10,838
11,129
11,599
13,818
:
Virginia—(/Southern
Wyoming
cOther
Western
States
Total bituminous coal
d Pennsylvania
anthracite..
Total, all coal
a
C. & O.; Virginian: K. & M.; B. C. & G.; and
& O. -in Kanawhar Ma son, and Clay-Counties,
-
fr ResK of State, including the
274
reporting
York
New
n
Includes operations on the N. & W.;
the B>-
Total,
♦Included
in
centers
Citv*
centers'"
—
national series covering
The
141
4.778
82 253
66.803
714
13,001
10,394
Pedrick
1919.
and
his
Panhandle District and Grant,
Mineral, and Tucker Counties,
fornia, Idaho. Nevada, amd Oregon,
records
Georgia,
♦
of
the
North
Less than
of
Bureau
Carolina,
L.000 tons.
,
Mines,
and
e
c
Includes Arizona. G«ii-
d Data for Pennsylvania anthracite from published
Average weekly rate for entire month.'' / Alaska.
Soutn
nomination
5,964
centers, available beginning with
Dakota
'
included
with
"other
Western
District of New York.
the Senate
by
920
—_
reporting centers—.
the
the Second
is
real
estate
He
the vacancy
confirmed
Jan.
head of the
name.
cf Jarhes
was
on
22.
concern
was
Mr.
insurance
bearing
named to fill
caused by the death
J. Hoey,
referred to in
States."
our
issue of Dec. 4, page 1341.
THE COMMERCIAL
578
& FINANCIAL CHRONICLE
Thursday, February 5, 1942
'
■
_
and 1,563,900 tons one year ago. Weekly indicated rates of steel
operations since Jan. 6, 1941, follow:
>
ago,
1941—
Apr
14
98.37c
28— ,97.6%
4——r .96.3%
Jly
Nov
10,
.96.6%
Jnri
6
97.2%
\pr
21
-^96.07c
Ang.
Any
17-
J-itl
13
_93.5 7c
Apr
28
—94.37c
Aug
IT——,
,95.67c
Nov
24_
.97.0 %
.95.9%
96.87c
Aug
18—, .96.2%
.96.5%
25—
Pec
1_
.97.6%
Pec
8-
.97.5%
.96,3%
PeC
15-
.97.9^
96.9%
Pec
22-
-93.4%
96.1%
Pec
29-
-96.17c
Jan
week stand at 96.5% of capacity, a
half point drop from last week's 97 point rate, according to 'The
Iron Age" estimates. This fractional decline is a normal fluctuation.
While scrap supplies still are extremely light, juggling of supplies
through allocation is tending to prevent a sharp drop in any single
district.
Some furnace operators report, however, that while they
are
maintaining all units in production, their yield per heat has
dropped to as low as 60% of normal. "The Iron Age" in its issue
Steel making operations this
20—
96.57a
May
Jan
27—
97.17c
May
Feb
3—
,96.97c
May
19—l—,99.97c
Aug
Sep
Feb
10-
97.17c
May
26—„,93.67c
Sep
-8
Fell
IT
9 4.67c
Jun
.2——99.27c
Sep
15
Mar
3
97.5%
Jun
9
—-98.67c
Sep
22— .96.8%
5—
12—_—99.27e.
2_
-.
..
—.
,
Feb
24—
96.3%
Inn
16
99.07o
Sep
29—
96.9%
Mar
10——93.8%
Jim
23
—99.9%
Oct
6-
.98.1%
,lan
5-
.96.4%.
Mar
17——99.47c
Jun
30—
_98.4 %
Jan
12-
.97 8%
Mar
24—99.8%,
Jly
' 20,—, 07.8%
Jan
19.
.97.7%
Mar
31—l—_99.2%*
7—
—91.8%
Oct .I3—L
—94.9%.
Oct
1912-
not
for
long
a
the
second/ but. for
•
period
as
the present con¬
as
flict
maylast," the Petroleum
Coordinator concluded. : ":
a 'a*
The object of the certification
procedure, it was explained by
Ralph
K.
Davies,
Deputy
Pe¬
troleum Coordinator, was to pro¬
vide a sound program whereby
each producing State would partieipate "properly in supplying
he
total
national
demand
*
■
•
for
•
.97.3%
Jly
14
-95.2%
Oct 27
99.9%
Jan 26petroleum. This "involves taking f
Apr
7——99.37c
Feb
2Nov
3——
98.2%
.97.7%,
Jly
21——96.0%
on to say:
' \
into
consideration not only the
Pittsburgh district operations this week are down a point to
"Steel" of Cleveland/ in its summary of the iron and steel mar¬
market demand for production by *
96%, while Ch'cago and Youngstown are .unchanged at 103% and kets, on Feb. 2 stated:
the State but also
the relative •
97% respectively. Philadelphia eased a half point to 90.5%, while
Steel, makers are streamlining their efforts to increase efficiency crude-oil-reserve position of each I
the Cleveland rate dropped 9 points to 97%. Buffalo gained 2.5 points in
State and .the rate at which such >
supplying material for war purposes.. Rolling schedules are being
to 92.5% and Wheeling is holding at.88%, Detroit operations started revised to conform to
the radically changed demand resulting from reserves are now being depleted.
this week at 112%, but. were expected to be down to 100% by mid-' the shift from
peacetime to war needs. A;: To make such a program success- "
week, with an average of 108% for the week. A gain of three points
Emphasis now is on different products than in normal times and ful it is necessary to view the
to 104% is reported in the Southern Ohio river area while the Eastern mills
must furnish larger, tonnage of some while others in heavy problem of crude petroleum sup- •
district rose 8 points to 106%demand in former years now are in secondary position. ■.Mills also ply in its national aspects."
A
To break the scrap shortage steel1 companies during the past are
Official recognition of the pos- ;
revising their order books and manjt contracts for non-war
week have been sending labor gangs into automobile graveyards. consumers are
being order off and returned to customers, as there sibility cf reconsideration of the
This is a new practice and results from the desperate need for waste
is no probability of their being filled for many months, if at all
$80,000,000 pipeline from Texas to ,
metal. At least five steel companies in the Midwest and one in the
Increasing volume of high-priority tonnage is crowding mill books New York abandoned last year.
east have entered the auto wrecking business.
Under one method making difficult the task of
scheduling for most efficient delivery when the industry was unable to
the auto-wrecking company is offered a price for old cars, the steel
the necessary raw mate-'
To untangle this situation broader allocations are expected, probably obtain
company moves in its labor gang, and
the owner of the yard is covering all major steel products and
perhaps extending to those less rials, particularly steel, came this
allowed to specify the parts he wants set aside for his use and sale.
week when Petroleum Coordina¬
important.
• ;■
A'a'
; ''A
: AA ";AA
" ' A/A"'
Usually the motors, front and rear axles and smaller parts are kept
tor
Plates continue most in demand and mills have heavy backlogs
Ickes, who previously had
by the yard owner. The mills estimate that two men may wreck
nearly all in highest priority brackets. This is in spite of diversion supported the project to build the
up to 10 cars a day.
The wage costs in this plan of scrap salvage, of continuous mills to production of
pipeline, said '•
light plates. Less relief than industry-financed
including hauling costs and yard conversion with no profit to the
expected by sheetmakers has resulted from curtailment of automo¬ that he might reopen the plan.
agent acting for the steel company, in some cases brings a net price bile
He made this statement at his
manufacture, reduction in demand for that purpose being more
of $2 or more above the fixed maximum price ceiling.
than balanced by loss Of continuous mill output.
Bar demand bids press conference during which he
A few days ago E. C. Barringer, executive secretary of the Insti¬
fair to become almost the equal of that in plates as shell programs also indicated that possible ra¬
tute of Scrap Iron and Steel declared that 500,000 tons of scrap
develop, expected to involve a tonnage that will tax bar mills to the tioning of motor fuel in the East
cannot be taken out of the nation's coal mines because the CIO
limit.
A
may result from an oil situation
../
'.A -...-''A A"- /AAA-' ' • "v-v"
refuses to adjust overtime rates, and that CIO officials have, inter¬
A/ Scrap from automobile graveyards seems about to move into that is "tight and getting tighter"
fered with scrap collection and shipments. Mr. Barringer answered
as
a
result of tanker sinkings
channels of consumption as the Bureau of Industrial Conservation
a statement by CIO
President, Philip Murray, who sought to blame takes over from the Iron and Steel
Branch, WPB. A plan has been and diversion of tankers to mili¬
scrap men and steel mill executives for many of the ills of the wai
formulated to allow owners of these yards to prepare the scrap and tary service.
A..A ' •.A
program.
'A.
A ' " ' A'" ''
'A'"' '•'■■•.iv.'.;';f
' = ■. sell it wherever they please, after salvaging such parts as are sale¬
Mr.
Ickes, who came in for
Early this week one of the largest domestic shell programs so able. In case they do not co-operate the bureau has authority to considerable criticism last sum¬
far was shaping up to completion. Already allocations for hot rolled seize the
scrap, sell it to the highest bidder and pay the owner on
mer, both in the trade and by the
shell steel have been made or are on the point of being made to that basis. In
many cases promises of immediate co-operation have general public/when he initiated
several steel companies.
It is said that approximately 1,000,000 tons been received and considerable material should be available within filling station nightly shutdowns
is scheduled for almost immediate allocation in a program which a short time. A
large scrap dealer-in the Middle West hps a corps in an effort to conserve gasoline, *
will require 4,000,000 tons of steel.
Recent developments indicate of workers experienced in cutting up scrap, ready to lend tveb refused to answer'• reporters who -
of
—
today (Feb. 5) further went
«
.
.
^
..
that
the
of
amount
shells
be
to"
from
made
cold
drawn
steel
are
somewhat greater than was expected a week ago.
Pig iron producers have finally received their February alloca¬
which set furnace production schedules at approximately the
same
level as January with no allowance for- the shortness of the
tions
current
month.
ducers,
since they believe that February will
This
allocation
rated orders unfilled.
is
a
of worry
source
to
some
end with
some
pro¬
high
Some observers, have felt that the WPB should
have taken it upon
itself to decide which orders should not be filled
during February, instead of leaving this task to the furnaces.
j
With the
steadily increasing demand for high carbon strip steel
into machine gun clips and rifle bullet clips, existing capacity
to go
is expected soon to be taxed.
A bottleneck is the insufficiency of heat
! A>
/
treating furnaces.
While
.
forcing production to
highest possible levels, steel
manufacturers each day see new names on their order books. Older
customers are obtaining steel from regular sources of supply as long
as
their orders are accompanied by high priority ratings but are
having little luck in obtaining materials with ratings below A-3. Not
only the makers of products for ordinary civilian use but the manu¬
facturers of metal goods for essential civilian needs are likely to
face
continuance
a
Where many
of
the
the
blows
which
shortages.
plants (household appliance makers, for example) are
accompany
war
abjle to obtain the steel they need to operate
on a reduced schedule,
of equipment is interfering with
"shortages of other materials and
production, even at the lower level.
THE
"IRON
AGE"
.A
COMPOSITE
PRICES
FW«h«Ml
Feb.
Onf>
3,
ago
One
month
One
year
A
High
1942, 2.30467c.
L--
a
Lb,
1939
2.30467C.
~
—.—2.30467c.
...
Low
High
1941
1940
„2.30467c.
1938
2.30467c.
Sep
__2.30467c.
1939
2.24107c.
Jan
2.35367c.
,.,2.58414c.
2.26689c.
Jan
Jan
2.27207c.
$20.61
19.61
Jly
Mar
9
20.25
Feb
19.74
Nov
24
18.73
Aug 11
Nov
17.83
May
14
17.90
1935
.
19
jtm 21
23.25
May
16.90
Jan
21
16.90
-
1936
ago
Pec
13.56
Jan
_
—
1933
„
1932
Pec
16
Pee
Oct
Steel
18
Oct
1
2.06492c.
Jan
8
1934
2. J 5367c.
Apr 24
1.95757c.
Jan
2
One
1933
1,95578c.
Oct
3
1.75836c.
Mnv
2
One
5
Based
1932
__1 89196c.
Jly
1.83901c.
Mar
1
1931
__l.99629c.
Jan
13
1.86586c.
Pec
29
1930
—2.25488c.
Jan
7
1.97319c.
Pec
9
1929
2.31773c.
May 28
2.26498c.
Oct
Feb.
One
week
ago
month
year
on
tations
phia,
No!
to
1
heavy
consumers
19.17
melting steel scrap quo¬
at Pittsburgh, Philadel¬
and Chicago.
$22.00
Low
Jan
7
$19.17
21.83
Pcc 30
16.04
Apr 16
Apr
S
22.50
Oct
14.08
May 16
3
1938
15.00
Nov 22
11.00
Jun
7
1937
21.92
Mar 30
12.92
Nov
1C
1936
17.75
Pec 21
12.67
Jun
1935
13.42
Pec
10
10.33
Apr 29
13.00
Mar 13
9.50
Sep
Aug
8
6.75
Jan
3
Jan 12
6.43
Jly
5
Low
934
933
932
931
12.25
8.50
—j-
—J—
S
25
11.33
Jan
6
8.50
Pec
Mar 20
$23.45
Jan
2
'930
15.00
Feb
18
11.25
Pec
f
23
22.61
Jan
2
1929
17 58
Jan
29
14.08
Pee
?
The American Iron and Steel Institute
on
28
Feb. 2 announced that
telegraphic reports which it had received indicated that the operat¬
ing rate of steel companies having 91% of the steel capacity of the
industry will be 97.7% of capacity for the week beginning Feb. 2,
compared
with
A Oil producing States and-the
week by Petroleum Coordinator
one year ago.
$19.17,
considering
was
However,
civilian
of
ban
the
point
told this
unofficial
and
sources
States
on
Jan.
the
some
"reprimand"
Coordinator
by
resulted
from
"grumbling
Ickes
rate
1he
would
war
seriously jeopardize
program. Premature ex¬
haustion
1.
of
arty
State's
one
re¬
sources would only throw an un¬
Nation of an adequate, due burden on the other States at
continuous
supply of petroleum, a time when the need for pe¬
"The imperative need of assur¬
ing
the
products for all military and
sential
a
civilian
sustained
reauirements
basis,"
Mr.
es¬
on
Ic,kes
stated, "no longer
permits the
haphazard participation bv States
troleum will be
than
-
hasn't
Starting
yet.*
drivers
in
critical
present
the
present
full co-opeuation in the
April
1,
will
Canada
as
-
private
go
on
a •
A
Other Washington developments
,
during the week included a re¬
quest from Mr. Ickes to the pe- *
troleum industry 'that it imme¬
diately undertake a steel salvage
and
equipment rehabilitation pro- /
"Every producer, every re¬
gram.
finer,
and,
engaged
in
fact,
person t
every
in the industry, regard¬
of. his position." the request
stated, "should irmke it his pa-»
triotic duty immediately- to bring
less
to commereial channels the maxi¬
possible
mum
which
of
tonnage
is not, and
scrap
00mint be
em¬
ployed by the oil industry."
Three shutdown
during
were
drop
the
week
Tex°s
31 *
responsible for the sharpest
in dailv average PA'de oil
the
Nation
in,
Production fell 453.- -
hor^eig to
daily average
a
drop
9
Jan.
for
recent ye^rs.
155
in
aavs
ended
Texas alone
dur^g
we»k
California^
Oklahoma
end
of
P"<mrding to the
rp-,
porting lower
totals.
Broadest
gain was °hwn bv Illinois.
A
gain of 1 497,000 Harris in "stocks"
of domestic and
in
held
veloped
Jan. ?4.
the
the
foreign prude ml
the
barrels,
of
Biweau
slutr>p
stocks of
of
acceding
this
Mirm«?
stocks
79 000
to-
week.
inpri
offset
barrels
1.576,000
a
de¬
v^ek ended
with inventories rwing to
dorjng
D°niesHc. crude
bv
States
Uni+ed
m)
Dar+'aPy
barrels
in
foreign crude oil.
T^e Mexican oil ^ie,oute movwl
to
the fore again this week.
Morris
TJ(
President
an
On
anno^ocTn^nt by
Copke.
armointed
Roosevelt,
to
bv
pvd'iate
program
to
et-
the oil properties exprnrv»*iofed bv>
M<=vico that he planned +0 meet
utilization
of
the
with
national
maximum
Nat^nV
of
prohibits all considera¬
save
*
re-/
developed
rationing plan for motor fuel.
the heels of
urgency
situation
fmrt
more
now.
"The
tions
even
tire
motoring to
serious curtail¬
where
247,764,000
of the<^
the certification system
introduced
on
that
questioning" bv
for
the
ment of gasoline consumntion
suits—which
Kan^os
were
plan
unless
down
cuts
of 455.600 barrels with
petroleum industry
r,;-
rationing.
rationing
motorists
sale
the
indications point to
all
sort
some
3 868 300 barrels.
Harold L. Ickes that "it is ex¬
tremely essential, from the standpoint of promoting the war effort,"
that the oil production rates certified by the OPC for each producing
State "be met by every State without delay." It was indicated by
97.3% one week ago, 96.4% one month ago and
This represents an increase of 0.4 point or 0.4% in supplying the national demand.
preceding week. The operating rate for the week beginning Any State that might persist in
Feb. 2 is equivalent, to 1,614.200 tons of ste^l ingots and casting, exhausting
its,
petroleum
re¬
compared to 1,607,600 tons one week ago, 1,592,700 tons one month sources at an abnormally rapid
96.9%
from the
steelmaking
etroleum find'Its
.—$19.17
23.61
23.45
Pec
The
20.17
High
nator
whether
Petroleum
the
production
composites, limited bv ceilings, continue unchanged.
scrap
of
shm*rcH
$23.61
for basic iron at Valley furn¬
aces
and
foundry iron at Chicago, Philadel¬
phia,
Buffalo,
Valley
and
Southern
iron
at
Cincinnati
23.45
Price
point-blank
Office
"Oil & Gas Journal."
ago
1939
Gross Ton
averages
$23.61
last week was 73.305 units A compared
with 79,930 the preceding week, a decline 0* 7,625 cars. In the com¬
parable week last year 124,400 were assembled.
production
Gross Ton
ago—
1940
Pig Iron
a
„—
1941
High
small increases, two lost ground and six were un¬
changed. Chicago rose 1 point to 103% in spite of scrap shortage
Wheeling gained 7 points to 95%, St. Louis 2 points to 78 and
Youngstown 1 point to 87. Cincinnati lost 2 points to 84 and Detroit
5 points to 87.
Rates were unchanged at Pittsburgh, 95; eastern
Pennsylvania, 90; Buffalo, -79Vk; Birmingham, 90; New England
95; Cleveland. 941/2%:
AA"%'/AA ,,/AA.,,-:Aa
A -
Scrap
3, 1942, $19.17
29
1940
districts making
17
2.07642c.
1941
Gradually spreading its price control, Office of Price Adminis¬
has asked fluorspar producers to hold prices at the leve1
prevailing Jan. 2. The door is left open for increase after showing
of figures substantiating claim that higher prices should be allowed
Steel ingot production last week remained steady at 97%, four
tration
Automobile
asked
the tota"
them of preference in their own semifinished or to assure
from others.
'A/Za/'^/AAAA/1/ AvAA;A';y. A:'A:;%%vaA
pig iron $23.05 and steel-making
15.90
1935
on
of
finished steel composite is $56.73, semifinished steel $38,
18.21
4
Based
assure
allocation
6
Jan
10
ago
to
15
May 14
shipment*
supply, Pipe and wire production have suffered most from scarcity
of semifinished, especially the latter.
One effect of this situation i*
that mills are seeking larger war tonnages with highest priorities
Pec
18.21
Jan
ago—
Additionally lend-lease tonnage continues to take toll
Pec
18.71
Mar
ago
for
orders
finished steel production
own
13.56
1929
2.05200c.
month
having, allocation
extent that limits their
an
14.79
1930
2.32263c.
year
mills -sometimes
integrated
to others to
Jan
2
28
One
One purpose is to forestal
'■
Jan
16
Mar
One week
without facilities.
excuse.
May 16
Pec
One
an
15.90
„
Apr
__2.58414c.
a
6
16
Sep
„_2.32263c.
1942, $23.61
Sep 15
yard
any
as
14.81
1931
1937
3,
to
%/aa/"
A
Scrap supply continues much below furnace requirements bu'
seems to have reached a fairly steady flow, keeping steel production
relatively even, though numerous .steelmaking units continue idle
because of scarcity.
Numerous state and municipal campaigns tr
bring out dormant supplies are having some effect but the total ic
not large. A drive to collect farm scrap is under way and is expected
to yield well.-., '.••AAA.:; A A"-'-.-;""r''A
l•%'.A AA./ A/A ,AA'v..
Some difficulty is being met in supply of semifinished steel, nonintegrated mills being unable to obtain as much as they need and
3
„
1934
1938
Feb.
Sep
23.25
18.84
—
1Q37
weighted index based on steel bars, beams,
tank
plates, wire, rails, black nipe, hot and
cold-rolled sheets
and strip.
These products
represent 78% of the United States output.
Low
_$22.61
1938 V
30467c.
age>
services
such lack
natural
rr-murCes-—not
for the first year of
the
war
alone,-
th°
panies
news
^morici'n
rh^rfpr
com¬
opjtio
from Mexico City of a deci-
where the Mexican Supreme
sion
-''upset" the subsoil prece¬
in the original litigation
involving the seizure of the halfbillion dollars of American, Brit¬
ish
and
Dutch
oil
properties.
dent
set
the
that
did
case
bearing
officials
Mexican
However,
said
have
not
Interior, in
of
than Dec.
the Government's
The American oil
had
contended that
entitled to the value
underground in their
oil
the
whereas
holdings
no
■''•/'v:'.v 1 ///
'/• Vv."'''
days.
'With
the
rights pass from STOCKS AND' CONSUMPTION OP BITUMINOUS COAL IN THE UNITED STATES/
of the Government. ;.'■;(
INCLUDING RETAIL YARDS
situation
Mexifcan
be¬
active again,
it was re¬
ported during the week that the
coming
Standard
Co.
Oil
had
its
sold
of
New
and Thomas W.
'
The
to the Bolivian Government.
•properties had been expropriated
by the Bolivian Government in
1937 and negotiations, finally decided upon at the Inter-American
Conference
at
Rio
de
Janeiro,
3.2
8,326,000
+
6.9
968,000
-■•■908,000
+
6.6
367,000
372,000
+,
705,000
industrials?——-——
There
•
in
been
since then.
crude oil price
process
were
no
19,540,000
10,235,000
9,726,000
53,397,000
52,013,000
9,340,000
9,750,000
——--—7'.
•
have
714,000
19,400,000
millst
Cement
Railroads
(Class
1)8—
r———.——-
1.3
—
July
5.2
+
Aug.
—-—
61,763,000
62,737,000
•
degrees
:
•Bradford, Pa.
Corning, Pa
•Eastern
^
——4
Illinois
1.37
'TV;
Mid-Contin't, Okla., 40 and
1.25
above
0.83
1.20
■Smackover, Heavy
Rodessa, Ark., 40 and above
East Texas, Texas, 40 and
above
•Kettleman
•:
Hills,
and
37.9
over
1.29
....
Pecos
Coal
tire
the curtailment
and
ban
cities such
New York where new parking
civilian
of
as
driving in
—
picture,
supply-and-demand
sity use their cars to get to-andfrom work, plus heavy gains in
Army and Navy needs for motor
date,
•fuel has more than offset, to
slackening in civilian motor¬
the
full
continued
program
to
the refining facilities for
high-test aviation gasoline which
has
the
active backing of Pe¬
troleum Coordinator Ickes. Work
on the new plants for which high
-triple
and plans for further
way
gaining
are
refining
of
expansion
facilities
momentum.
■+
of
shutdown
gasoline
aid to deal¬
ers in coping with lower incomes
and
fs
a
means
of conserving
service stations as an
Gasoline
S.
Car
Lots,
(Above
F.
O.
«5 Octane), Tank
B.
Refinerv
Water
Tide
2,360,930
2,365,859
2.351.23J
30
3,261,149
+
19.2
2,216,648
2,380,301
3,132,954
2,736,224
2,591,957
+
20.9
2,109,985
2,211,39#
3,322,346
2,773,177
+
19.8
2,532,014
2,279,233
2,338,370
3,273,375
2,769.346
+ 18.2
2,538,118
2,211,059
2,231.277
2,207,942
2,331,415
2,339,384
+
9.8
8,747,000
+
5.5
34,555,000
+
7.7
8,500.000
+
25.2
+
+:'+•;
tt
67
days
36
.30
Other
Gnlf
Coast
days
+
—-
1
Oklahnma
bR- OfiAfc
OR
nR0R- .06^
Super.
—...
3,340,768
2,866,827
+ 16.5
2,622,267
2,283,831
2,297,785
:
3,380,488
2,882,137
+
17.3
2,608,664
2,270,534
2,245,449
3,368,690
2,858,054
2,889,937
+ 17.9
2,588,618
2,276,904
2,214,337
3,347,893
+ 15.8
2,587.113
2,325,273
2,263,679
3,247,938
2,839,421
+ 14.4
2,560,962
2,247,712
2,104.571
3,339,364
2,931,877
2,975,704
+ 13.9
2,605,274
2,334,690
+ 14.8
2,654,395
2,376,541
2,234,13$
2,694.194
2,390.388
2.241,972
1-^
8—
15—
22—
29
6
...
3,414,844
13—
days
33
days
3.0
days
45
days
15.6
2,558,180
1,619,265
1,542,000
+
15.7
2,688,380
1,602,482
1,733,810
1,736.729
17——
days
34
days
-20.6
—
6.1
declined
the
7.0
ities/while Class I railroads showed a
period.
* -
same
RECENT
FOR
.■■'
ANTHRACITE
■
''■ +
INDUSTRIAL
(Net
PLANTS
——.
June.
July-
Stocks, end of month
Consumed during montlu
end
supply,
Days
of
1941
1941
1940
1,338,915
1,317,242
1,216.695
240,102
162
mo.
days
(Class I)t—
Railroads,
265,229
154 days
—
6.1
+
177 days
9,787,901
10,589,428
8,911,125
10,974,335
10,705,682
+ 17.4
10,121,459
9,110,808
9,886,443
+ 16.3
9,525,317
8,607,031
9,573,698
11,118,543
+
18.9
9,868,962
8,750,840
11,026,943
+ 20.0
10,068,845
8,832,736
9,773,908
144,149
116.901
3.4
+
4.7
—
8.5
;
Stocks, end of month——
238,871
239,465
172.616
Consumed
102.610
72 days
120,870
95,790
during monthsupply, end of mo.
industrial consumers—
59
54
days
38
days
0.2
+ 65.7
—15.1
—12.2
+ 22.0
+ 89.5
—
days.
+ 19.1
10,185,255
9,170,375
10,036,410
14,118,619
11,924,381
+ 18.4
10,785,902
9,801,770
10,308,884
plantst)
288,526
131,168
mo.
68 days
end of month——
Consumed
supply,
Days
end
♦Collected
of
by
Federal
the
Railroads.
American
for
month_/
during
$72
firms
116,785
65
228,583
129,847
55 days
265,999
93,062
279,560
86 days
days
+
September, 1941, and 84 firms for December,
+
4.6
Association oi
1941; 71 firms
^Subject to revision.
1940.
stocks
1942.
decreases in
of domestic anthracite and coke from Dec. 1, 1941, to Jan. 1.
Anthracite in producers' storage yards also declined during
period.
same
—■-—_———
—
SUMMARY OF STOCKS
7
OF DOMESTIC ANTHRACITE
AND COKE
From
Retail stocks, 232
selected
432.341
net tons.
'
Anthracite, days supply*.
net
Coke,
storage
d»v.s
58
.
Oct: l, "
1,
1941
108
1941
davs
month
333.800
412,140
59
previous
davs
45
davs
From
9.7
year ago
+ 29.5
—46.3
+ 28.9
—
producers'
yardst
days
56.979
63 560
61.561
100
74
days
47
days
days
v-
9.4
—52.0
—
+
2.1
2.1
in
1.237.297
939,227
708,210
1,393,230
—11.2
+ 31.7
deliveries to customers in the preceding month. tCourtesv
the Department of Commerce of the Commonwealth oi
of
Committee
tSubject to revision.
Pennsylvania.
Kerosene,
41-43
Water
New York
B.
Tank
White,
(Bayonnc)
O.
New
Texas
Orleans
9.717,471
117,141,591
Capita! Issues In Urea! Britain
statistics
have
These compilations
Limited.
subject to revision, exclude
been compiled by the Midland
of issues of new capital, which
ail borrowings by the British Gov¬
ernment/shares issued to vendors; allotments arising from the cap¬
italization of reserve funds and undivided profits/sales of already
issued securities which add nothing to the capital resources of the
whose securities have been offered; issues for conversion
redemption of securities previously held in the United Kingdom;
short-dated bills sold in anticipation of long-term borrowings; and
company
or
municipal and county authorities which are not specifically
loans of
./^•■;;.;;+.,;r5./
figures are based upon the prices of issue.
The
limited.
TABLE
OF NEW
CAPITAL
ISSUES IN THE UNITED KINGDOM
Vraor
V"'-
'
.
£
'*-■••
1920..
Year—
—
1927
113,038,000
1936—
150,190.000
——-
203,760,000
_
132.869,000
1933———r;
1921——A+—- 215,795,000
1922—c.:.——
235,669,000
1923
88.666,000
L
237,541,000
384,211,000
1919.,
182.824,000
—v.
217.221,000
—A
223,546,000
219,897,000
1937.,—
170,906,000
;
253.266,000
1938—
118.098 000
314,714,000
—
1939..,
...
1928———————
253,749.000
66 294 000
4 096.000
362,519,000
—_
■
—
2,326,000
—
+—236.160,000
1930.
NEW CAPITAL ISSUES IN THE UNITED
KINGDOM—-
[Compiled by the Midland Bank, Ltd.]
Geographical distribution
British
£
countries
£
Foreign
overseas
Kingdom
Total
£
•
countries
£
161.934.000
18 038 000
2.852.000
217,221,000
190.808.000
23 353.000
3.060.000
170,906,000
1935.
182 824,000
:
7.200.000
Car.
Fuel
N.
$.053
—_
.
.
24 938,000
92.746 000
21 284 000
4 067.000
43.335.000
18 313 POO
4,646,000
4 096.000
3 544 000
357 0°0
195.000
2,326,000
1941—.
138.768 000
118,098,000
1938.
1,927,000
399.000
Monday,
Refinery
Baltimore
North
10,372,602
111,557,727
66,294.000
48
Calculated at the rate of
Anthracite
11,476,294
124,502,309
.
United
Jan. 1,
1941
478.614
55 732
tons
Coke, days supply*
Arifracite
Dec.
1942-t
Heelers-
Anthracite,
9,506,495
—
% of Change
Jan. 1,
10.065.805
9,893,195
138,653,997
following
1925
selected retail dealers showed
from 232
9,908,314
9.844.519
11,087,866
12,842,218
>■
1926——
Reports
9,486,866
11.289,617
+
1924—
Coke
and
Anthracite
+26.2
+ 1.0
+23.6
3.2
+ 12.3
Power Commission.
tCollected by the
reported for November and December,
Domestic
10,653,1.97
18.3
12,474,727
12,213,543
[Compiled by the Midland Bank, Ltd.]
/Selected representative
Stocks,
+ 21.0
+ 14.4
11,484,529
13,901,644
14,756.951
SUMMARY
•
9,665,137
11,616,238
13,974,232
Bank
,
12.5
13,836,992
New
+ 12.5
1.8
—
213.346
days
235.741
170
1937
1938
8,396,231
Total for year
previous
From
month year ago
Dec.,
Sept.,
Nov.,
Dec.,
■'•
V
9,2uu,7a4
September
are
1941 §
+
.
1939
1940
10,183,400
9,256,313.
::
The
7
of Change
1,257,478
utilities'*—
Kilowatt-Hours)
+ 11.7
over
October
AND OTHER
Tons)
•",.■■■■'•:.■
-
+
August
From
Electric power
% Change
1941.- +
11,683,430
12,449,229
13,218,633
13,231,219
—„
May
:
_
,
RAILROADS,
of
(Thousands
MONTHS
■■'"■'
1940
December
'
UTILITIES,
POWER
ELECTRIC
AT
•+
••
November
;
1,728,203
12,882,642
—
April
plants and 1.8% at electric power util¬
15.1% decrease during the
manufacturing
cellaneous
1.717.315
1,588,853
11,831,119
March
Consumption increased 12.3% at the mis¬
increased 3.2%.
plants
1,588.967
2,632.555
13,149,116
February
respectively, during December, 1941,
at the; miscellaneous manufacturing
stocks
2.660.962
15.8
+
1941
electric power utilities and Class I rail¬
0.2%,
and
time
same
1,598,201
+ 14.8
2,996,155
2,994,047
,
+
43 days
3.440.163
2,673,823
+ 14.5
3,012,638
3,450,468
3,468,193
'
..
-—A—.
.
at
1938
1939
1940
1941
+
3,002,454
DATA
.
and
over
♦Revised.
Industrial Anthracite
Stocks of anthracite at
1941
1942
*3,472,579
24
54
\
2,053.944
2,033,319
10
31.
days
:
2,424,935
2,174,816
2,845,727
Jan.
days
40 days
2,712,211
2,464,795
+
■.
—*3,288,685
Jan.
7.4
—
14.5
+17.3
3,052,419
2,757,259
2,179,411
3
Jan.
27
total
3,495,140
3,234,128
...
—
+ 15.7
3,003,543
3,475,919
—
20
27-;
8.8
the U. S. Bureau oi
based on reports col¬
lected jointly by the National Association of Purchasing Agents and the BituminouE
Coal Division from a selected list of 2,000 representative manufacturing plants.
The
concerns
reporting are chiefly large consumers and afford a satisfactory basis for
estimate.
({Collected by the Association of American Railroads.
Includes powerhouse,
shop and station fuel.
ttNot available.
^
Tulsa
y
2,327,212
25
2.6
(■Collected by the Federal Power Commission.
tCollected by
tCollected by the Bituminous Coal Division.
§Estimates
Philadelphia
—
2,281,328
days
34 days
Mines.
Cities—
Chicago
2,576,331
Jan.
5.6
78
45
.08?
Eastern
1935402—
19342670—
+ 16.8
1942
days
days
2,324,750
2,817,465
2,837,730
January
Grand
2,251,089
% Change
50
:
2,583,360
3,313,596
Dec.
34
—
2,228,586
3,355,440
■/■v..1."."'.
'. Retail dealer
2,554,290
Jan.
days
days
76
—
+ 19.3
Week Ended
30
(Class I)—
+ 16.2
2,792,067
11—
Dec.
days
38
—
2,816,358
3,330,582
18-—_
Nov.
■.—.—
tt
days
3,273,376
2,558,538
+ 19.1
Nov.
+■; 6.7
....
4
Nov.
—Days Supply
67
-0525
—
Shell
20—
Nov.
313,000
—-
13—
Nov.
11.2
+
43,055,000
...
6—
Oct.
10,910,000
334,000
.09
.08?
Texas
y
3,233,242
2,203,560
6.4
—
Oil, F.
O.
unker
(Harbor)
Y.
B. Refinery or
C—
.052?
.04
4.25-4.625
1.04%-.04%~
Savannah,
Bunker
C
,
Philadelphia, Bunker C
Gulf
N.
Y.
Tulsa
1.3C
1.35
1.70
Oil,
F.
O. B. Refinery or
(Bavonne)
Chicago,
$1.35
.85
Coast
Halifax
Gas,
Terminal
2.15
Diesel
Oil
2,341,103
2,202,454
Oct.
628,000
37
F.
$.08!
2,312,104
2,193,750
2,198,266
Dec.
York—
New
Sncony-Vac.
2,159,667
2,399,805
2,434,101
2,442,021
2,375,852
**
U.
2,426,631
18.1
2,453,556
electric power.
f
16.6
+
2,413,600
4.2
industrials
Total
the
possible revival of
the 7 p.m./'to 7 a.m. curfew for
gasoline service stations was in¬
dicated as the Executive Commit¬
tee of the Eastern States Gasoline
■Dealers' Conference requested of
.the
Government that it imme¬
diately
initiate
a
Nation-wide
nightly
143,000
mills
•
the East,
In
■
+
2,762,240
19.0
7.9
—
industrials:
Other
priority ratings have been ob¬
tained by Mr. Ickes is getting well
under
+
.—-
——.—
retorts i,
Coal-gas
Other
the
3,220,526
17.9
Oct.
10,640,000
—————
Byproduct coke ovens
Steel and rolling mills
Days
ing.
'•
:
The
industry
steam ahead on
912,000
47,856,000
this
from workers who must of neces¬
1937
1938
1939
1940
over
2,760,935
17.9
22.3
37,216,000
——
—
in demand in defense areas
crease
+
The sharp in¬
developed.
1940
.
+
Oct.
9,226,000
foreign trade——
fuel,
roads
Despite the belief that tire ra¬
tioning
would curtail
gasoline
consumption by civilian drivers
Throughout
the country to the
point where this would become
an important factor in the general
% Change
+
Consumption-
Known
fuel
mine
made it difficult for
the average motorist to use his
automobile
as
freely as in the
past.
(Thousands
WEEKS
...:
.{,
+
Sept.
11,980,000
'regulations
■has not
835,000
Days Supply, End of Month, atElectric power utilities———
Railroads
ing the week with buying contin¬
uing oil an active scale.
Motor
fuel demand held up well despite
*15 7
•••■
2,714,193
Dec.
Additional
1.23
along the Atlantic Seaboard dur¬
14.5
"
Kilowatt-Hours)
of
2,743,284
2,745,697
Sept.
588,000
total
Grand
Signal Hill, 30.9 and over.—
and fuel oils
14.8
3,230,750
7.4
984,000
I) II———
deliveries
dealer
Retail
Cement.
the
+
—
industrial
Total
0.95
1.12
demand for heating
6,848,000
A-
—v
(Class
Railroads
County, Texas
Lance Creek, Wyo
The cold weather brought brisk
15.8
.'\7
3,263,082
9
Sept.
6.9
+
—-
industrials?
Other
+
149,000
—;
5,532,000
1,021,000
millst
Cement
Bunker
1.25
.—■
22.7
—3,238,160
1.22
•Illinois Basin
:
retortst
Coal-gas
$2.75
1.31
23.0
16
1-6
+
7,352,000
—•
rolling millst
and
Steel
ovenst—
coke
Beehive
not shown)
are
21.0
23
Aug.
4.2
5,916,000
+
utilities*——v—-—
coke ovenst
1
———
power
Byproduct
(AH gravities where A. P. I.
v..
13.9
18.2
24.8
Aug.
stocks—•
dealer
Retail
Electric
Wells
16.5.
15.8
Aug.
2.7
+
—
Cunsumption by-
At
15.4
1941
2
Sept.
Barrel
14.4
16,9
—
*1941
26——.
Aug.
stocks—-—.I—;
industrial
Total
■changes posting during the week.
Prices of Typical Crude per
.14.5
14.3
17.9
RECENT
FOR
v-
Week Ended—
0.7
—
12.8
12.9
12.5
—_
.
DATA
1.3
—
11.0
13.2
12.0
17.5
States,-
'/-+■
,
'
11.6
13.7
.♦Revised,
+
8,901,000
16.4
12,7
—
United
Total
Change
12,427,000
16.0
—
Coast_.
% of
(revised)
12,821,000
•
power
18.1
18.1
——
Mountain:————
Rocky
■
Jan. 10, '42
Jan. 17, '42
Jan. 24,'42
Jan. 31,'42
-—A—■————+«+;+
—
Week Ended-—
—
—
States
Southern
■■"■•■'.■''
PREVIOUS YEAR
1
PERCENTAGE INCREASE OVER
;
Central-
Pacific
—Net 0"■ons——•—
•
Stocks, End of Month,
Other
West
Nov., 1941
(preliminary)
at— :..
utiiiLies* ___—:
Byproduct coke ovenst--A^-v.i^VT--------;
k teel
and rolling millst
—
Coal-gas retortst
-
Electric
increase
.
'""I
.
Central' Industrial
:
-Dec.,1941
r".
,
Atlantic—,
Middle
H.
Jersey
in Bolivia
holdings
-V
■
Major Geographic Divisions—
New
England
Young, Research. Sectioh, Bituminous Coal Division,
Harris, Jr., Chairman, Coal Committee, National Association of . %•
'+/' +;•+ Purchasing. Agents)+ : +v ,;
;../■/
W.
by
jointly
(Determined,
27—
.
-did these subsoil
the ownership
1941.
in
there was enough coal on-hand Jan, 1, 1942 to
vailing in December,
last 40
163,000 kwh.; an
and retail dealer deliveries pre¬
rate of consumption
1942, was estimated to be 3,440,of 14.8% over the corresponding week
output for the week ended Jan, 24,
deliveries increased 25.2%.
At 'the daily
time
industry of the United States for the week ended Jan. 31,
1942, was 3,468,193,000 kwh., which compares with 2,994,047,000
kwh, in the corresponding period in 1941, a gain of 15.8%.
The
power
during December, 1941,
consumption increased 7.7%
and retail dealer
Mexican
that at
held
Government
1,
the electric light and
production of electricity by
the
that
mated
net tons, which was 974,000 tons higher
1941 and 11,739,000 tons higher than Jan. 1,1941.
Industrial
Institute, in its current weekly report, esti¬
The Edison Electric
industrial consumers and retail dealers as of
1, 1942 were 62,737,000
Jan.
any
upon
the
report released on Jan. 31 reported that stocks of bi¬
a
tuminous coal held by
For Week Ended Jan. 31,1942,
Skews 15.8% Gain Over Same Week In 1941
Coal Division, United States Department of the
The Bituminous
subsoil policy.
companies
they were
Electric Output
Stocks Of Goal In Consumers' Hands On Jan, I
Court
579
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4042
Volume 155
28,30
7
D_
plus
Terminal
$.04
% .055
.03 5/i
floody's Daily
Feb.
Tuesday, Feb,
Two
Commodity Index
weeks
Month
,———
Wednesday,
Jan.
—
ago,
3
Jan.
28
—1
224.8
_173.1
Friday,
Jan.
226.0
30
Saturday, Jan.
31
1941
High—Sept.
:
225.1
1942
17
High—Jan.
•
-Low—Jan.
-219.9
9
Low—Feb.
—225.3
Thursday, Jan. 29_;
220.5
:
Feb. 3
ago,
—227.3
.>223.9
Jan. 20—,
ago,
Year
27
Tuesday, Jan.
._224.8
225.1
3
27
—
—
-
171.6
—227.3
-2-'-—22Q.Q
THE COMMERCIAL & FINANCIAL CHRONICLE
580
•A.
Thursday, February 5, 1942
pailantine, member of the law formerly consisted of an additional tion, and has
of Root, Clarx, Buckner & 9,946 common shares.
waivers
from
Items About
Banks, Tiust Companies
the
David
New
York
a
firm of Hornblower &
on
cember
member of
biock Exchange
Owen,
WeeKs,
Similar action
City Bank Farmers
John.
the
with
R.
pany.
Trust Com¬
J
■
,
Na¬
the
describing
article
An
of the
Directors
of
Board
the
Hospital, New York City. He was
53 years old.
Born in Boston, Mr,
Owen was graduated fr^m Har¬
vard University in 1911.
He was
executive
payment will be Jan. 31st.
was taken by
next
cueu
Jan, 17 in the Beekman btreet
an
The
month.
that
for
City Bank of New York's
tional
Department has
Credit
Thompson Co. of Chicago, a res¬
Personal
until fy24, when
he' joined the Chicago office of
prepared as one of a series
m
conjunction
with
"Number
Eight," official house organ of the
taurant concern,
Hornblower & Weeks.
become
partner of the firm in
to the New York
a
and-
1929
omce
At
m
Mr. Owen
came
1941.
/
meeting of the Board of
a
Directors of
Bankers Trust Com¬
been
organization.
world-wide
oank'is
published to keep the
bank's staff of nearly 10,000 in¬
formed in regard to the history,
It
was
of its
development and progress
various services.
of Newborn on Jan. 2i, L.
At the annual meeting of stock¬
braay; formerly Vice-Presiaent
of tne oank, was elected Vice- holders of the Clinton Trust Co.,
Presidenc ana Secretary, and Dana New York City, held on Jan, 21,
S.
A.
Buckingham, President,
KeUey,
formerly
Assistant Lee
Treasurer, was elected Assistant and William J. Waite, Chairman
of the Executive Committee, made
Vice-President.
In addition, the
pany
b.
following
officers
new
were
elected: A. W. Schlicnting, Assist¬
a
joint report which revealed that
bank's total resources and
the
deposits, at $11,269,627 and $10,tion, Manager, Building Depart¬ 121,721, respectively, represented
ment; W. K Livingston, Assistant new highs for the bank, and that
Treasurer; J. H. Millikin, Assistant there had been an increase in
Secretary; A. K. Murray, Assistant loans and investments and in cash
the
year
1941.
Undivided
Treasurer;
and
J.
V.
bauter, for
Vice-President; K. E, Carring-
ant
profits at the end of 1941 were
$50,000
against $37,135
at the
Assistant Trust Officer.
Linus C.
Coogan, Vice-President
and Director of the Corn Products
Co.,' New
Surplus funds
end.
previous year
at Dec. 31,
increased from $306,000
1940, to $335,000 at Dec. 31, 1941.
elected a Director of the Chemical It is stated that during the year
Bank & Trust Co., New York, at there was an increase in all classes
the annual stockholders meeting of
accounts,
their reports dis¬
Refining
held
on
York,
He is
Jan. 21.
a
was
Director
but
closed,
particularly in com¬
special checking ac¬
mercial
and
cluding the Commercial Solvents
counts.
The bank sold more than
Corp. and the Kansas City South¬
ern Railway Co.
$430,000 of United States Defense
Savings Bonds since May *1, 1941,
and increased its loans to $2,911,-
of
number
a
At
of
companies,
organization
annual
tne
in¬
meeting of the Banks'
Board on
582
of Dec. 31,
as
1941, from $2,-
Jan. 2z, Raymond C. Ball,
for¬ 579,-360 a year previous, and its
merly an Assistant Vice-President, investment portfolio to $4,670,811
was
Deposits at the
appointed a Vice-President, from $4,299,760.
and Clinton C. Johnson, formerly year end rose to $10,121,721 from
Manager
of the Foreign Depart¬
$9,320,894 at the end of 1940.
ment, also was appointed a VicePresident.
Mr. Ball, a graduate of
Princeton
University,
with
the
Chemical
1926.
Mr. Johnson attended Dart¬
has
been
Bank
since
mouth College and has
the
Chemical since
been with
1919.
At the
meeting, George Lysle, for¬
same
merly an Assistant Secretary, was
appointed an Assistant Vice-Pres¬
ident;
William A. Edwards, for¬
Assistant Branch Super¬
was
appointed
Branch
A.
Seton
Post,
Vice-President
Jr.,
tional Bank, New York,
attack
heart
Roosevelt
He
City.
an
on
the
at
New
Hospital,
was
Post retired
Na¬
died of a
15
Jan.
on
retired
a
the Chase
of
65 years old.
Dec. 31, 1941,
York
Mr.
from
active banking career
than
of more
with the Equitable
National
28 years
Trust Co. and the Chase
He
appointed manager
branch of the
Supervisor; Marinus J. Topp, for¬ Equitable Trust Co. in 1913, was
merly Assistant Branch Manager, elected a Vice-President in 1922,
was
appointed Assistant Branch and continued with the Chase at
Supervisor; and John F. Wood, the same branch on Madison Ave¬
at
45th
Street
after
the
formerly an Assistant Trust Of¬ nue
merly
visor,
Bank.
of
the
was
uptown
appointed Trust Officer. Equitable-Chase merger in 1930.
Regi¬ Born in New York City, Mr. Post
nald H. Johnson, Jr., Assistant was graduated from Yale Univer¬
Secretary; George L. Farnsworth, sity in 1898 and .for a short time
Assistant Branch
Manager; and was connected with the Merchants
Miss Christine M. Morrison, As¬ National Bank in New York City.
sistant Manager, of the Madison Thereafter he became associated
with the American Sheet & Tin
Avenue at 74th Street Office.
Plate Co. and traveled extensively
ficer,
was
Other appointments were
the regular meeting of the
Board of Directors of the Na¬
through
tional
Equitable Trust Co.
At
held
City
on
Bank
of
New
York
that
the
concern
west
and south for
joining the
before
Jan. 20 the continuance of
Philip
allowances .to officers
emergency
Topchio, President of the
bank for at Bank of Naples Trust Co. of New
least three months prior to Jan; York, and retired Vice-President
1st, 1942, was authorized for the of the Consolidated Edson Co. of
end of. the months of January, New York, Inc., died on Jan. 14
February and March of this year. at his home in Bronxville, N., Y.
and employees in the
The
bank's
announcement states:
He was 73 years old. Mr.
Torchio's
former
a
the
of
secretary
j
W.
and
Under¬
United
Italian
receiving basic salaries at the
rate of $6,000 or less per annum,
calculated
and
paid
in
an
the United States in 1893.
Naples
amount
equal
each
since
officer's
and
first
The bank
to 6% of
employee's
$150 basis monthly salary, plus
4% of the next $100 of his basic
monthly salary or part thereof.
The supplementary allowances
were paid at the end of Novem¬
ber
last
for
October
and
No¬
vember, and at the end of De¬
been
universities
President
Trust
its
and
the
of
Co.
of
came
Bank
the
partment
1930.
a Trustee. Washington, D. C., announces tne
to election of Josepn R. Fitzpatrick
Net income of the Cleveland
Mr. Fitzpatrick, an Trust Co. for 1941 after all
Treasury De¬ as Cashier.
charges
matters pertaining to employee of the bank since 1921, and reserves amounted to
$1,454,1917, Mr. Bailaniine was formerly Assistant Cashier. 046, equal to $10.53 a share, com¬
on
later served
revenue,
solicitor of internal
as
advisor
as
Committee
of
the
to
Congress
Joint
In¬
on
taken
over
on
Dec.
The bank also
motion of
Tudor
the pro¬
announces
by. the New York State Bank¬
ing Department
as a
pared with earnings of $1,419,800,
or
$10.29 a share in 1940.
This
Henry P. Hoffman and
Whiton from
Note
Tellers
was the report signed jointly by
1927, to Assistant Cashiers.
Chairman I. F. Freiberger and
Assistant Secretary of the
President George Gund and sub¬
Treasury prior to becoming Un¬
At a meeting of the Directors mitted to the annual
meeting of
der-Secretary of the Treasury in of the State btreet Trust Co. of the bank's stockholders on Jan. 21.
1932.
"v:,
Boston, Mass., Jan. 19, officers
Profits
were
shown
to
have
were reelected .and the following
been
allocated
as
follows:
$1,George L. Morrison, Chairman promotions were, made: To Assist-Lioo,000 was credited to
surplus;
of the Board and President of the ant
Treasurer; Charles
Devens* r$2?6,GG0 was paid in dividenas of
General Baking Co., was on Jan.
Henry F; Hurlburt, 3rd; to As-<$2 per share and $78,046 was
Revenue Taxation in
ternal
and
.
as
,
.
,
,
elected
29
director of the Bank
a
sistant
Secretary:
Raymond M. added" to undivided profits.
The
! reserve
of Hughes, Philip J. Potter.
of $400,000 set aside in
New York. Mr. Morrison nas long
Mr, Devens Was graduated from 1940 was added to
surplus, makbeen identified with tne Storage Groton in 1928 and from
Harvard,ing total increase in surplus $1,Warehouse business and is Presi¬ in 1932.
He has been with the 50u,000.
Federal Deposit Insurdent of the General Cold Storage bank since
October, 1934, and is ahce payments increased $49,332.
of
Manhattan
tne
Co.
of
and
house Co.,
uei-pma,
the
the
Company
General
fa.
tie
is
Philadelphia
director
a
and
is
Co., Phila-
trustee
a
of
the
Lauheiiau
Hospital, of Philadel¬
He is a Mecnanical Engin¬
phia.
at
present in the Credit Depart- Taxes increased $186,775 to
(of $1,465,827.
a
total
nient.
of
Manufacturers
Mutual Fire insurance
aelphia,
Ware¬
both located in Phila-
Hurlburt
Mr.
was
graduated}
The
pointed
report
that
out
1931 and also at- obligations of the Federal GovemSchool. >ment
constitute
92.8%
of
the
He entered the bank in June, 1933, bank's total investment
portfolio
and is now in the Auditing Divi- witH 47% of the maturities due in
from Harvard
in
Harvard
tenaea
Business
Mr. Hughes has been with irom three to ten
years.
Total
ana is a member of the Mili¬
the bank since March, 1917, with investments in U. S. Governments
tary Order of Foreign Wars, hav¬ the exception of approximately a are
$174,091,824. The report also
ing served in the World War.
year of service in the last World stated:
sion.
eer
Bank
for
Savings
City of New fork announced
o.n
Lewis Gawtry is re¬
that
2d
aan.
became
the
Union
Bank
asso¬
"We have continued through¬
Trust
with
the ciated
in
Potter
Mr.
War.
The
Company
the time of the merger witn the
at
National
in
out uncertain and
experience in various de¬
tiring as Chairman of its Board
of Trustees after nearly. 40 years partments, he is now devoting his
of service witn the Bank.
Mr. time to the development of busi¬
Gawtry is the senior trustee of ness for the Trust Department.
its
of
Board
in
Bank
been
in
a
He
was
Vice-President
1920
of
President
and
In
1926.
January 1941 he was
elected ta the newly created posi¬
tion
Mr.
of
Chairman
Gawtry
is
a
of
the
Board.
Director of the
Guaranty Trust Co. of New York,
the
North
British
our
approximately $187,600,-
of
tor
Horace K.
Corbin, President of
the Fidelity Union Trust Co. of
Newark, N. J., announced on J&n.
19 the appointment of George W.
Plage of the main office as chief
teller. Mr. Plage started his career
at the bank 28 years ago, on De
1, 1913.
a
against $106,668,873
at the
The continued fac¬
end of 1940.
low
vailing
and
on
has
loans
pre¬
investment securities
for
funds
on
rates
interest
commercial
it
made
difficult
to
find profitable use for our funds.
This bank, like all well-managed
banks,
for
was never more eager
reasonable
loans
than
today,
eeping
constantly
in
mind
fety ahead of earnings."
V
'^
Mercantile
&
eco¬
maintain
position, increasing
total investments during the
year to
000
member
19J3.
since
First
elected
the
having
changing
to
conservative
After
the Bank
conditions
nomic
1925,
Arthur E. Crone, Vice-President
Insurance Co. and of various other
ther
features
of
the
report
corporations.
For a number of of the Plainfield Trust Co. of showed that:
years he has been active in the Plainfield, N. J., and City Treas¬
The increase in total deposits
affairs
of
the
Boy
Scouts
of urer of Plainfield for 26 years,
from
$436,959,344 in 1940 to
America serving as a member, of died on Jan. 18 at the age of 70.
$491,309,885 in 1941, is attrib¬
the Executive Board of the Na¬ A native of Newark, Mr. Crone
uted largely to war activity.".
tional Council and also
urer
of that
as
Treas¬
with
The
Discount
Corporation
of
annual report
to shareholders, shows net profits
for the year ended Dec. 31, 1911
after making provisions for taxes,
New
York,
Plainfield in
in
located
1886 and
During the year, $1,200,000 of
capital
notes
were
retired;
$400,000 of this sum was in re¬
began his banking career in 1894
organization,
in its
City National Bank
the
Plainfield
as
Assistant
of
Cashier.
serves
In
1"926, when
the bank was
merged with the Plainfield Trust
remainder
the
and
taken from earnings.
% Other real
Co., Mr. Crone was made a VicePresident, «which position he held
estate
was
;
account
is
only $3,145,-300, a net re-,
now
duction of $1,621,734 in 1941. c f
at the time of his death.
He was
with
elected City Treasurer in 1916 and
$278,698,
William O. Kurtz, Vice-Pres¬
had been successively reelected
Dudley H. Mills, President of the
ident and Director of the Illinois
to the office since then. Mr. Crone
Discount
Corporation,
reports
Bell Telephone Co., was elected a
was also a member of the board
that
dividends
amounting
to
Director
of
the American Na¬
of managers of the Plainfield Sav¬
$240,000 were declared during the
tional
Bank
and Trust
Co. of
ings Bank and a former President
year from undivided" profits and
Chicago at the annual meeting of
of the Plainfield National Bank. J ;
that the capital funds now stand
the bank's Stockholders held on
of
$306,202, which
net
a
for
loss
compares
1940
of
follows:
Capital
$2,000,000;
surplus $2,000,000 and undivided
profits $1,598,499.
In its state¬
as
ment
1941,
lists
of condition as
the
Discount
total
assets
at
of Dec.
31,
Corporation
$65,647,394;
the
principal items being United
Government
securities,
$45,381,348;
security
contracts,
$17,023,602; cash in banks and on
hand, $1,755,126 and acceptances,
$1,259,209. Loans payable are re¬
ported at $9,700,000,
as
among
liabilities,
with
United- States
Government deposit
account at
$33,230,785, U. S. Government se¬
curities borrowed, $6,545,719 and
U.
S.
Government
securities
sold
under
In his report to
the Stockholders
President, said the
Bank had experienced a satisfac¬
Wolfe, Vice-President and Cash¬
tory year in 1941, reporting $349,ier, in order that he may assume
106 in net earnings after reserves
civilian duties with the Philadel¬
for
contingencies and preferred
phia Ordnance District of the U.
dividends
and
not / including
S. Army., Mr. Wolfe has resigned
profits realized on the sale of se¬
as
Cashier
and
at
the
leave
of
absence
to
O.
Mr.
Howard
on
Directors
a
Vice
President.
;
1941, reporting $91,383,557 in de¬
posits on Dec. 31, compared with
Fleming, President of Fed¬ $79,089,872 on Dec. 31, 1940. r* %
eral Reserve Bank of Cleveland,
At the annual meeting of the
M. .T.
announced,
on
Jan. 16 that the ap¬
Board
plication of the Farmers and Mer¬
chants'
Westchester, Yon-
kers, N. Y., has received approval
State
admitted
Fourth
chartered
to
bank
membership
to
in
of the
to
State
reduce
of Directors held
immedr—
ately following the Stockholders* -
State &
meeting,
dend
on
a $4. semi-annual
the common stock
declared
out
of,the
ing
the
last
for
1941.
■
first
of
Stern,
regular
curities which were credited to
Jan. 26 the Board of
securities
depreciation
reserve.
appointed
Milton
D.
This compares with $332,005-net
Reinhold
Vice
President
and
earnings in 1940.VThe Bank also
Cashier.
Mr. Reinhold had been
showed a substantial growth: in
meeting
Savings Bank of
Montpelier,- Ohio, for membership
in the Federal Reserve System had
been accepted, and that the insti¬
North River Savings Bank, New tution is now operating as a mem¬
York City.
ber of the System.
This is the
The Bank
/ ;
Jan. 13.
The Philadelphia National Bank
announces
that it has granted a
be
Bank's
six
divi¬
was
earn¬
months" of
■
The Directors elected Charles C.
the Kuning
and
Leigh
R.
Gignilliat,
District Jr., as Vice-Presidents. Both for¬
The Farmers and Mer¬ merly held the title of Assistant
Federal
Reserve
Banking Department in 1942.
capital stock from chants' Bank was organized on
$981,275 to
$881,815.
The new Nov. 18, 1909, with a paid-in capideclaration of war.
capital account is made up of 55,- jtal of $25,000, which was subse¬
054 shares
of common stock of quently increased to the present
At the regular meeting on Jan. the par value of $10 each and 110,- capital of $60,000.
The bank has
27 of the Board of Trustees of The 425 shares of preferred stock of operated
continuously since inNew York Trust Company, Arthuri $3. par wallle._ The bank's capital corporation
without reorganizaII
are
States
in
taxation
York
in
deposits, at the present time,
Bank, approximately $1,450,000.
National
aavisory counsel
an
United
of
New
establishment
was
to
He had
Second
any
Total
depositors.
Treasury, was elected
Appointed
repurchase
agreement,
This is a continuance of the career was mainly concerned with- $10,000,000.
/•
the electrical engineering field in
supplementary
salary
allow¬
which
spent 43 years. Born in
ances which were in effect from
Henry C. Meyer, Jr., President
Oct. 1st to Dec. 31str 1941, and Vercana, Italy, Mr. Torchio re¬ of Meyer, Strong & Jones, Inc.,
ceived engineering degrees from has
affects officers and employees
been elected a Trustee of The
of the bank in the United States
The
States
taken
never
fxrni
Bailaniine
Vice-President.
its
result of the
Other
made
official
appointments
by the Directors
were
Ed-
| ward A. Eerndt, Assistant Trust
j
Officer: Kenneth R. Wells, Assistant Cashier; and Robert Lindauist,
Advertising and Publicity Officer.
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4042
Volume 155
581
'
Stockholders of the Continental
Illinois Bank & Trust Co.,
Chicago,
at the annual meeting on Jan. 9,
elected Frank F. Taylor, Senior
Vice-President in charge of the
bank's trust department, a mem¬
ber of the Board of Directors.
16
officers
elected.
$2
share
a
was
clared, maintaining the rate which
has been in effect since the be¬
mings, Chairman of the Board,
reported that the earnings were
good and that the bank is in a
strong position.
At a meeting of
Directors, following the stockhold¬
;
''
from
ciated
of
eight other men. New of¬
ficers in the commercial banking
vanced
that
■
Assistant Secretary of the
Resseguie, Leslie
A. Anderson,
Harry V. Dyke, Millard S. McGuffin, and Paul E. Miller.
Osmond
A. Jackson of the New York office
of the bank was also made an As¬
bank
made
Street
Net
trust
department.
Assistant
from
President of
Manager
to
National
Manager of the Central Manu¬
Moines, an¬
nounces
three promotions in the
bank's staff, as follows: Clyde H.
facturing District Branch of the
the
Moines
Iowa-Des
Bank & Trust Co., Des
Doolittle
Trust
from
Officer
senger
Vice-President to
and
Verne
T.
Bonnett, from As¬
President.
Bulkley, Vice-President of
the Central National Bank & Trust
Co., Des Moines, Iowa, has been
named President of the institution.
Goodwin, who has been
President and Chairman of the
W.
J.
Board, will continue as
Mr.
as
a
mes¬
7
in 1917.
Increased
activity,
industrial
from Assistant higher deposits, greater loans and
Vice-President, enlarged volume of business are
sistant Cashier to Assistant Vice-
E. F.
started
to
Vice-President and Trust Officer;
Orville M. Garrett,
He
bank.
Chairman.
Bulkley has been in the bank¬
reflected
110th
the
in
annual
Central
$1,941,330
$1,031,949.
serves
these
ill
mortgage
only to con¬
"where
production of war
such procedures may
be omitted so long as all reason¬
materials,
earliest moment.
OPA Tire Orders
that tire dealers,
wholesalers
and
tors
tubes
their
with
who
or
wish
investments
who
them to
As
recover
revised,
amounts
stated
statements
are
also
permits dealers, distributors and
Outright termination of the New
wholesalers
to
replenish
their
moratorium
stocks of new tires and tubes by
is called for by Myron S. Short,
Chairman of the New York Sav¬ presenting certificates and receipts
York State mortgage
ings Banks Association's Commit¬
Legislation and Vice-Presi¬
dent of the Buffalo Savings Bank,
in a statement issued on Jan. 27.
tee
on
absurdity is apparent," Mr.
"The
obtained
and
from
tubes
to
sales of
new
ary
suspended sales of new tires
ordinary civilian users.
Short said,
a
tire
tion
which went into effect
on
and
tube
Under
plan,
Jan. 5,
rationing
on
controls so as to seven groups of eligibles, covering
Scotia (head office Halifax) as at avoid skyrocketing prices, and on vehicles used exclusively in pro¬
Dec. 31, 1941, made public Jan. 26. the other to extend the mora¬ tection of public health and safety
Total
assets
are
$380,393,282, a torium on mortgage payments. or for essential freight and bus
new
all-time high for the bank, Tne economic conditions underly¬ transportation or industrial and
an
increase of over $51,000,000 ing these measures are directly commercial operations, were given
during 1941.
Total deposits are opposite," said Mr. Short, who a nation-wide January quota of
continued:
356,974 tires to be distributed by
up over $27,000,000, and commer¬
Plans for
What justification is there for local rationing boards.
cial loans are up over $12,000,000.
the rationing program were dis¬
It is said that the figures provide
extending any longer this pro¬
of
statement
satisfactory
the
Bank
of
Nova
price
and rent
tection which
evidence of the part
small minority
a
since dustries and providing in other
promoted directions the enlarged banking
and Fred H. services required under present
debtors has
home
also
enjoyed for ten
in
cussed
are
owners
apparently
page
these
Jan.
columns
SEC
disclosure
announce¬
inquiries
this
on
registrants engaged in the pro¬
duction of war materials, it has
been the
policy to discuss with
registrant and its account¬
ants the extent to which normal
the
may
be followed
without curtailment of produc¬
procedures
tion, and the extent to which it
is
reasonable
7 to
and
practicable
proced¬
employ alternative
or
to extend other normal
procedures with a view to ob¬
taining the most
satisfactory
possible determination and re¬
view
of
inventory
amounts.
Through the use of extended or
substitute
procedures,
it has
ordinarily
been
possible
in
these cases, for the independent
public accountants to satisfy
themselves
as
and
amounts
the
to
of
fairness
tial
the
thus
substan¬
inventory
to
express
their
without taking
the
substantial
fairness of the representations
as to inventories, although their
opinion
exception
to
1,
extent
certificate indicated the
29.
for the manufactured
The
Whenever
The OPA fixed maxi¬
mum prices for new tires at those
years, when at least nine out
of
every
ten of New York's levels in effect, on Nov. 25, 1941,
of
financial
the
proper
point have been received from
ures
in Janu¬
to
"of considering legisla¬
the one hand to establish
tires
"eligible" buyers.
The Government early
and
made."
is
liquidate
order
in
sub¬
inventory
ment further said:
their investment."
tire
of
or
completely are
the
the
assure
fairness
on
tires
to
to
stantial
distribu¬
new
its independent public
accountants
original
tire rationing order, Price Admin¬
Jan. 21
practical 7 alternative
taken by the com¬
are
and
pany
amendment to the
an
allowed to sell them back to their
Mortgage Moratorium
and
able
measures
In
of
customary taking
curtail
would
the
at
tne
that
said
inventory (including observance
or
test-checking
by
auditors)
and
effects,
eliminated
be
Commission
The
suppliers at prices which "permit
Calls For Ending NY
National Bank
bank
The
1935.
of
Taxes
——HI tm
,'V
taken
by the bank in the war
ing business in Des Moines since
1914 and been a Vice-President of emergency, in financing of war in¬
the
51,330
$1,935,602
Dominion
Legisla¬
the
as
moratorium
overstocked
department since 1933.
Albert H. Jehl was advanced
Herbert L. Horton,
7 such
&
Loss
Gilbert B. Whitehead,
Holly R. Blessing
250,000
40,602
to Profit
Added
war
tion
should
a
prosperity.
rary
tinue
after
.
have a
tempo¬
to
are
we
economy
istrator Leon Henderson ruled
.
250,000
♦After
elected
as
manager
of the collection
department, started, with the
bank as a bookkeeper in 1921.
200,000
-
if
adjusted
1,440,000
205,000
policy with respect to
its requirements regarding phys¬
ical inventory verification by in¬
dependent public accountants.
7
Finally the dislocations o£ the
7 healthy
a
liberalized
i
1,440,000
Fund
announced the establishment of
■7777;v::?v-.7777-:^v7.:-;7.;vv7..
$1,941,330
ises
Peterson
Mr.
-
*$1,935,602
profit
Written Off Prem+."
the
of
staff
Office
1940
would
simple mat-
today
a
emergencies of the '30's must be
Officers'Pension
having joined the
1928.
in
1941'.
.
organized and has been head of
the real estate division of the
Assistant Secretary
an
of the trust
Hill
ter.
of
Dividends
trust
make
public.
comparison
market
refinancing
mortgage
the bank's
operating statements for 1941 and
1940 follows:
7
Elmer M. Peterson was named
department,
was
*
"
department, all Assistant Cashiers,
are
Harry L. Jones, Wilfred E.
sistant Cashier.
that
since
department
time.
-
to the
A
has
and
1935,
the investment division
headed
Vice-Presi¬
Second
Trust
To
avoid any possible inter¬
ruption in the production or de¬
livery of war materials, the SEC
was
keen
•
amount to
analyst for the trust
investment
department in
Vice-Presidents and ad¬
to
stocks
and
bonds,
$216,528,965 and rep¬
resent 53,10% of total liabilities
made, however,
competition in the
payment
ments and call and short loans
against
Inventory Unification
Policy Liberalized
the
as above,
23.44% of total lia¬
to the
public.
Total
bilities
,
Assistant;
to
due
quick assets, which include the
above items, as well as invest¬
He first became asso¬
with
the
bank as an
Officer.
meeting, the. Board promoted
Spencer L. Hart and, Fred M.
Naber
-
balances
and
represent
Frederick J. Thieme, Jr., was
advanced
ers'
dents
1936.
dent since
Walter J. Cum-
ginning of 1940.
in
in 1930 was made
manager
of that department.
In
1933
he was promoted to
Assistant
Cashier
and
has
served as Assistant Vice-Presi¬
de¬
banks
banks and correspondents
and outside of Canada, to¬
gether with cash assets
and
1925,
retiring
every day by the deal¬
ings with the mortgagors not so
protected. If a demand for full
from
department in
the bank's credit
Directors were re¬
The usual semi-annual
of
other
,
Mr. Andrews joined
President.
■
was
Vice-
of
office
the
to
assets,
777;;7V'';777
is-proven
Immediately available
including
cheques
of
public.
In its
Andrews
H.
William
elected
12.51% of total liabilities to the
it was an¬
bank,
President Ivey.
advices the bank says:
The
dividend
the
of
nounced by
which
to
the
procedures
brands and
of
test-checking
normal
auditing
observation
or
of the inventory
had not been employed.
for private brands at a level 10%
On
the basis
of such con¬
and below the standard prices.
ferences
and
correspondence
neither need nor are affected by
further states:
On Jan. 19 an emergency sched¬
where
full
disclosure
of
the moratorium?
Case studies ule of maximum
Although heavy withdrawals
prices for old
the
circumstances
has
been
were made by depositors for in¬
which the savings banks have tires which can be retreaded or
The
Montrose
Savings Bank,
made
in
the
financial
state¬
vestment in the Victory Loan,
filed with the Joint Legislative
Montrose, Mo., became a member
recapped went into effect.
Mr.
ments and certificates, no ob¬
Committee
on
the"; Mortgage Henderson had also disclosed that
deposits by the public totalling
of the Federal Reserve System on
jections have been raised to
Moratorium
reveal
example he would
$287,982,403 show an increase of
Jan. 15, tthus bringing the total
impose in the near
the
omission
of
normal pro¬
over
$24,000,000 as compared 7-after example where well-to- future a price ceiling over all
membership of the St. Louis Re¬
cedures with respect to state¬
with the previous year.
do people, owning properties on
Of this
serve Bank to 438. The new mem¬
used tires.
No rationing plan for
ments for the current reporting
increase approximately $21,000,which they borrowed prior to used tires is in effect.
The sched¬
ber, chartered as a State bank in
period of companies engaged
000 is in the non-interest bear¬
1932, are openly taking advan¬ ule for second-hand tires was is¬
1895, has a capital of $25,000, sur¬
in the production of war mate¬
ing class, representing increased
tage of the moratorium and ad¬ sued
to
plus of $5,000 and total resources
prevent profiteering
rials.
'
<
7 balances in business accounts.
mittedly using their funds for
of $270,253.
The bank's President
which, Mr. Henderson said, had
other purposes rather than pay
Approximately $3,000,000 is in
is D. C. Calhoun.
also reached "serious proportions."
interest-bearing accounts.
De¬
anything on these just debts.
SEC Delays Utility
A $400,000,000 Government pro¬
On the other hand, all but a
posits from Dominion and Pro¬
The officers and directors of
7
Rule On Debt Payments
vincial
Governments
are
in¬
small minority of those whose gram for production of synthetic
The First National Bank of Great
make the
creased over $3,000,000.
Other
mortgages were under the mora¬ rubber—designed to
The
Securities and Exchange
Falls, Mont.,, announce with re¬
torium have voluntarily worked United States independent of the Commission announced on Jan. 21
balances, made up of deposits
gret the death of the Chairman of
East
for
all
military
and that it will not
of and balances due other banks
out agreements with their mort¬ Far
adopt a rule at this
its Board, Sam Stephenson.
On
(Canadian and Foreign), total
gagees gradually to pay off the many civilian rubber needs—was time dealing with payments by
Jan. 26, Mr. Stephenson, who was
$6,306,647 — showing
little
principal of their loans.
No announced on Jan. 12 by Federal subsidiaries of registered public
73 years of age, was born in In¬
time should be lost in giving re¬ Loan Administrator Jesse Jones.
change.
utility holding companies on in¬
diana, was graduated from Miami
The new rubber factories call
Current loans in Canada total
lief to the widows, orphans and
debtedness
held by the parent
University at Oxford and in 1892
an annual
output companies.
small savings depositors whose for attaining
$106,195,902 — an increase of
was
admitted to the Ohio bar.
'
funds are tied up in these old of 400,000 tons.
$12,856,886; there is a small de¬
A preliminary draft of such a
Locating thereafter in Great Falls,
crease in loans outside of Can¬
mortgages, and who are facing
rule
says
the Commission was
he established a law office which
the risk of heavy losses because
ada,
but
after allowing
for
submitted to the utility industry
eventuated in the present firm of
Canadian Exchanges To
this there is a net increase of
sharpsters are taking advantage
for comment on April 16, 1941,
Cooper, Stephenson & Glover.
of an outmoded law.
approximately
$12,000,000
in
77.7/.%
Change Trading Hours and was the subject of a public
7 In 1915 he became President of
commercial loans. Loans to Pro¬
The Toronto Stock Exchange's conference on June 10. The Com¬
There is no basis in fact for
the First National Bank of Great
vincial Governments, cities and
management committee has de¬ mission on Jan. 21 added:
any claim that the emergency
Falls, a position which he held
to
municipalities
are
down
ap¬
The proposed rule prohibited
which permitted the passage of cided
return, beginning on
for about 20 years.
He had since
Johns
E.
Emmett
Quiner from Assistant Vice-Presi¬
dents to Vice-Presidents.
conditions.
able
to
tion
announcement
The
on
pay
regular
amortiza¬
mortgages,
their
'
-
-
■-««—r~
the bank's
President of
Great Falls Townsite Co., and
Rocky Mountain Fire Insur¬
Chairman
been
board.
the
the
ance
of
He was also
Angeles, held January 13,
President H. D. Ivey announced
Los
of
the Western Lithograph Co., Coast
Envelope and Leather Products
that George
and
elected
a
proximately $1,000,000. Call and
loans, secured by stocks
$3,970,255, show a re¬
duction in the year of $1,415,-
W. Hall, President
interests, was
director of the Bank.
allied
Citizens Na¬
tional Trust & Savings Bank at
their annual organization meeting
on Jan. 15 elected "five officers to
new posts and re-elected all other
Directors
of
the
moratorium legislation still
the
short
exists.
and bonds
of
Investments aggregate $132,116,215, an increase of approxi¬
mately
$1,000,000
from
the
previous year.
This total in¬
■
New York heads the list
states
all
dollar
in
volume
defense 7 contracts.
of
91.7.
Co.
the annual stock¬
Following
holders meeting of the Citizens
National Trust & Savings Bank of
Co.
•
Wage
rates, weekly earnings and employment have risen by leaps
and bo,unds.
People generally
have a better ability to pay now
than
they
had
for
years,
cludes Dominion and Provincial
borrowers should protect
Qovernment securities maturing
selves
and
them¬
the
post-war
shock by getting out of debt
now.
Further, economists agree
within two years amounting to
$50,907,187, an increase of $1,536,148 in the year.
Other Do¬
against
minion and Provincial Govern¬
purchasing power should be
reduced
by every reasonable
ment securities
method.
much
the
Municipal
total
are
same
and
that
$58,526,070—
as
other
last
year..
The
securities
that
$22,682,957.
Cash, including deposits with
Canada, represents
the Bank of
lifted,
-
mand
the
9,
trading
Eastern
a
same
unless
the
on
the.
same
The
covering
declaration
transaction
effective
under
had
the
Commission
has
however,
that
con¬
the
it will be more satis¬
factory to deal with problems of
cluded,
for
present
this character by
daylight-
hours, but
the
Holding Company Act.
order,
than
...
on no¬
Commission,
by the alternative procedure, suggested in the. proposed
tice initiated by the
according to these
advices.
The Exchange now
Standard time.
a
proposed
become
time,
operates at
in
or interest on any in¬
debtedness held by the parent
daylight time), Monday to Fri¬
day, and from 9:30 a.m. to 12
noon, Canadian daylight time, on
Saturdays
aftt>r Feb.
9, when
the
United
States
and
Can¬
adopt nation-wide
arrears
principal
Canadian
daylight
time
(10:30 a.m. to 2:15 p.m., Eastern
saving
which was
thereof,
payment of
dividends on any class of its
cumulative
preferred
stock,
from making any payment on
in
p.m.,
ada
registered holding company or
subsidiary
The Winnipeg Grain Exchange
will operate from 9:30 a.m. to 1:15
cited
This, of course, is fallacious; as
to 3 p.m.,
daylight time, thus conforming to
trading
hours then to be
adopted by the New York Stock
Exchange, according to Canadian
press advices of Jan. 27.
" 7 7
were
mortgagees would delull payment of principal.
former
the
a.m.
the
also
is
to
hours of 10
moratorium
argument
if
Feb.
' -
rule.
THE COMMERCIAL & FINANCIAL CHRONICLE
582
the fact that Singa¬ known as the Malay Barrier, furi¬ now indicate that the town of
is under siege remains ous fighting continued this week Balanga is in the battle zone. This
a
matter of such importance as between the Japanese
and the little, town is about half-way from
various forces of the United Na¬ the head of Manila Bay to the tip
to defy exaggeration.
tions. Impressed with; their need of Bataan Peninsula. The Japa¬
The bastion of Singapore is
for haste and for whatever suc¬ nese also seem to be attempting
in various ways the key to
cesses, they can achieve before the sea infiltration, for a successful
the holdings of the whites in
democratic countries organize attack on an enemy warship in
the Far East.
Its significance
their Far Eastern defenses,
the Manila Bay was reported Tues¬
as the control point for traffic
Japanese pushed
forward
des¬ day. Landings were tried on sev¬
between the Pacific and In¬
perately and regardless of losses. eral occasions,, but always were
dian
Oceans, has
been too
They gained some territorial suc¬ beaten back with severe losses to
often emphasized to need re¬
cesses, but losses inflicted upon the Japanese.
iteration.
Both the military
them in men, shipping and air¬
That the Pacific Fleet is at
and
psychological
necessity
planes are insupportable for any
long last taking a part in the
for holding the island must
But
fense.
Foreign Front
pore now
(Continued from First Page)
concentration on beating
first, despite the marked
progress of the Japanese in the
Far East.
China, Australia and
New Zealand are profoundly con¬
cerned, and repercussions of the
.
parent
Hitler
discontent
Great
also
in
United;
evident
are
Britain
the
and
States.
It
of
is,
better
to
infinitely
course,
such
recognize
dercurrents
un¬
.democratic
in
apparent
countries, and to make suit¬
able explanations, if possible,
be
than to disregard the signs of
Axis
popular uncertainty.
To
of
defenses
the
the
in
United
Pacific.
Na¬
his
In
before
the House
of Commons, last week, Mr.
Churchill * emphasized
the
transport problem, and made
addresges
it clear that it simply was
possible to
not
supply all actual
and potential fronts.
President
Roosevelt
let
it
be
known early this week that he
plans to make a speech Feb. 23
the
on
course
of the conflict. The
announced aim will be to
provide
people with a clearer under¬
standing of the course of the war,
and to dispel the poisonous rumors
the
afloat. In some recent pronounce¬
ments, Mr. Roosevelt already has
tried to
correct false
created by some
ble
Cabinet
centrated
of his
impressions
more
volu¬
Ministers, who
on
the
con¬
denunciation
of
and
Hitler
neglected the Japa¬
nese.
The President emphasized
that the war will be total in all
spheres and that everything possi¬
will be done in all areas of
ble
combat.
of
Indicative
trend
the
more
strenuous
are
recent
efforts
in
London and Washington to aid the
Far Eastern victims of aggression,
and
to
placate the great nations
themselves slighted in
defense arrangements.
Australia
that
feel
and New
Zealand
are
assured
to
length of time.
everyone.
is
already
Thailand
on
The
the
troops,
all
British
Imperials
gathered from Malaya into
Singapore, a statement was issued
by Lieut. Gen. A. E. Percival,
When
were
commander of the British forces.
The
of holding
task
the fortress
Ireland
a
last
week
eral
has
storm of criticism, in
Douglas
MacArthur
in
the(
Philippines. The fact is that re*:'
Enforcements
aplenty would be
if there were
means available for getting them
to Bataan Peninsula through the
Japanese
screen.
The
British
Minister of Supply, Lord Beaverbrook, disclosed last week' in a
general statement that American
troops were sent to Northern Ire¬
land at the request of Mr. Church¬
ill, which suggests that psycho¬
logical factors probably called for
sent to Mac Arthur,
that
move,
orities
Irish Free State auth¬
took
strong exception to
the landing of American troops in
Ulster, last Friday, on the alleged
ground that the neutrality of Eire
is threatened thereby.
Singapore Besieged
and
the
was
Sunday,
island
from
the
naval
and other
pore.
7-
■
Only modest direct attacks
against the
defenders so far
have been reported, but little
by the
Japanese
Singapore
will
obviously
time
be
granted to the defenders for
organizing their forces.
Gun
duels across the narrow Joalready
Strait
hore
are
re¬
dromes.
In
some
was
Amboina
ceased.
have
All
of
To the siege
added
a
of Singapore
was
urday, when the Burmese city of
fell
into
the hands
signified
the
a
growing
main Netherlands
base
of Surabaya on the highly
populous island of Java. The ex¬
pected Japanese aerial attack on
Surabaya developed Tuesday, and
the
admitted
authorities
Dutch
that
considerable
damage
was
best de¬
fended point in the entire chain
of islands, and it is obvious that
done.
But
this
is
the
of
Expeditionary
and
has
Force
landed.
The Battle of the Atlantic appar-,
ently has been transferred lo_the,
American
the
for
coast,
time,
being.
Minister
Prime
closed
the
war
the
to
AEF
House
of
conduct
of
;
;
the
011
of the
vanguard
last
im-
accorded
the
was
overwhelmingly
of
vote
•
464
•
supporting
.
with
members,
>
Arrival of the
only 1 opposed.
•
new
Thursday, and
mediately
.
;
three-
by prideful references
Commons
•
Churchill
momentous
debate in the
day
the
Americans in Ulster will give
the British
,
latitude of
a
not. previously
euver
,
man-
avail-
,
Churchill declared,
able, Mr,
will, act
It
-
as
deterrent
a
.
to
invasion, and also will make
possible direct dispatch to the
East
of war
materials
V
Far
•
manufactured
for British
.
ac-
count in the United States.
,
The
German
Fuehrer, Adolf
Hitler, called his Nazi minions to¬
gether last Friday, to hear his
oration on the ninth anniversary
of his assumption of the Chancel-•
lorship. Virtually all of the ad¬
dress
devoted to attempts at
was
justifying
the
Nazi
in
course
international affairs, and to vilifi¬
cation of Prime Minister Church¬
ill and President Roosevelt. Hitler
admitted, however, tha.t the Reichs-*
wehr is
the defensive in Rus¬
on
sia, and he assumed full responsi¬
bility for this; He indicated that
the
been
of
number
has
and
Nazi
submarines
increased
enormously,
that
asserted
States
the
United
will realize what such
now
craft
accomplish.
can
German submarine activity just
the
Atlantic
Coast" of
the
v
Rommel's Drive
off
At
Celebes and in
Borneo which the Japanese at¬
tacked some weeks ago, heavy
battles continue, according to late
reports from the Dutch capital
of Java, Batavia. At the eastern¬
most end of the vast archipelago,
points
Britain
and
New
Ireland, the
Japanese apparently have gained
some ports, with the obvious aim
of
closing the United Nations'
through Torres
between
Australia
and
route
Guinea.
Australian
fliers
the
bombed
port of Rabaul, on
New Britain island, repeatedly.
to
out
in
the
Peninsula
island of
fastnesses
and
in
of, Bataan
the
fortress
Erwin
General
con¬
coastwise
and
Rommel,
who
has gained a word of praise even
from Prime Minister Churchill,
,
counts
"informed" com¬
that some 30 or
more submarines; are operating in
the
Western Atlantic,
and ob¬
by
the
mentators suggest
in
servers
the
insurance
world
appear to hold similar views.
official
estimates
Reports
been
of
sparse
have
commander
ago
un-.
British
lines.
No sible that
is
It
some
least
at
pos-.
British units were,
appeared. withdrawn to reinforce the Far
East, and that Rommel was aided
also by such factors.
sinkings have
in the last few
indication
occurred.
weeks
two
questionably was facilitated by
shortening
of his own * supply
lines,
and
lengthening of the:
The uncertainties of
days, which is not necessarily
an
that
has
none
The sinking of the
over
which
the battle
stretches,of desert, in
vast
battalions
tank
maneuver
Canadian passenger liner Lady
are
such- that
Hawkins, 7,988 tons, was an¬
nounced last Thursday, and a
serious loss of life was in¬
British authorities
confidently
dicated.
-
like
Rommel
Only
reported
were
leaving 250
71
survivors
immediately,
men,
women
and
children unaccounted for. The
U.
S. tanker Rochester, 6,836
tons,
and
a
was
some
sunk late last week,>
British survivors of
ship torpedoed off the Can¬
adian
coast
reached
the same time.
tory
nearly two months of
heavy battles, defenders of the
Philippines under the able Gen¬
eral Douglas MacArthur still hold
Canada
both
harass
the
in
in the Australian islands of New
and
States
tinues
it will be defended to the hilt.
After
further disaster, last Sat¬
Moulmein
this
to
menace
Philippines Defense
ad¬
Scottish,
occasions,
trans-Atlantic shipping, but
losses, while painful, are re¬ continued to lead his Axis forces
ported modest when contrasted eastward in the latest phase of
with the safe arrivals and depart¬ the Libyan campaign, this week.
ures
of vessels.
Published ac¬ The sudden turn of the German
with
of the aerial
damage
few
a
Monday that communications
New
mitted by the British.
on
appeared also over Northern Ire¬
land, where the ' new American,
a
and
British and
raided
towns
United
aerial su¬
periority
presumably
was
augmented by the fall of Ma¬
laya, with its numerous air¬
bombings
fliers
being destroyed, sys¬
tematically. Batavia noted on
supply
Strait,
whose
and also sent their
hurtling upon German in¬
dustrial towns and ports. German,
made
after
successful attack
by pur warships of all combat
types on Japanese bases, in
that
stated
installations
were
ported.
More important are
heavy bombing attacks by the
Japanese,
French coast,
missiles
.
Corregidor. If the supply
advancing Japanese units. Only a
60,000
British Empire thin defense was possible against problem is becoming serious for
our troops, there is no hint of it
troops completed a weary march the Japanese in the jungles east¬
across
the
causeway
from the ward of Moulmein, which lies on in the dispatches concerning the
struggle.
Reinforcements
obvi¬
Malayan mainland into Singapore, the broad Salween River,
Cross¬
ously cannot be sent to MacArthur
last Saturday, before vastly more
ing of the river was attempted by
on anything approaching an ade¬
numerous forces of invading Jap¬
the invaders, but they were beaten
quate scale, and no one knows
anese.
With that action a new
back with heavy losses. The port
this better than the fighters on the
and decidedly critical phase of the of
Rangoon, vital in the Burma
spot. But still the battle goes on.
Battle of Eastern Asia began. The Road
supply route for China, is
There are some signs, on the
disheartening delaying action of the obvious goal of the Japanese
the British Imperials down the
other
hand,, that the Japanese
drive, but Rangoon is situated
Malay Peninsula granted precious across Martaban Bay and is well steadily
are
augmenting
their
hours for augmenting the defenses defended.
blows at the weary defenders and
of the island which holds the
increasing the number of troops
Malay Barrier
gigantic British naval base of
endeavoring to move down Ba¬
Singapore. The forces on the is¬
Along the 4,000 mile stretch of taan. That they have made a litland promptly- were dedicated-to Netherlands^ East Indian,
British]] tie progress likewise is apparent
an indefinite and unyielding
de¬ and Australian-mandated islands, from the official reports, which
Some
last
sharp
v
last
of
view of the unaided fight of Gen¬
known
Strait, where an armada of in¬
vading transports met the attacks
of British, Dutch and American
the Marshall and Gilbert Is-,
not to be lost entirely, Sing¬
naval and aerial units. Japanese
lands, situated along the route
apore must be held.
from
Hawaii
to
Australia.
The
valiant
British
defense ships were sunk at a rate of more
than one a day in this vast ac¬
The supply question for the;
moved down the mainland of the
Far
Eastern
units
of
the
tion, and some important Japa¬
Malay. Peninsula swiftly toward
nese naval
units also were lost,
United Nations is, of course,
the end of last week.
Japanese
As
the
a
vital
transports went down,
one,
and
the
at¬
troops drove forward recklessly in
thousands
of
tack
last
Japanese soldiers
Sunday
presum¬
frontal assaults, and the methods
perished beneath the waves.
But
ably was intended to discover
of / infiltration
were
continued.
still the Japanese came on, and
weak points in the enemy
Heavily outnumbered, the Im¬
the battle continues.
chain of "stationary aircraft
perials finally were drawn back
On
both
sides
of
the
carriers," which bolster the
huge
into Singapore, and sappers dyna¬
island of Borneo, Japanese land¬
Japanese control of the West¬
mited the broad causeway which
ern Pacific.
ings now have been effected, and
connected
the
island with the
the enemy thus has made impor¬
The surprise attack was highly
mainland.
This phase of the bat¬
tant gains. Balik Papan, oil port
successful, according to Washing¬
tle was completed last Saturday,
on the east coast, and Pontianak,
ton, and a number of Japanese
and the siege of Singapore then
on the west coast, appear to have
auxiliary ships went to the bot¬
began.
succumbed. It is in these engage¬
tom,
or
were
beached. Aerial
Since the naval base is on the ments that the
Japanese lost most bombing and naval gunfire heav¬
land side of the island and there¬
heavily, and the question cannot ily damaged the Japanese installa¬
fore is only a mile from the Jap¬
yet be answered as to whether tions on the islands, which are on
anese guns, it is obviously of no their
gains justified their im¬ the outer fringe of the Japanese
use for servicing large ships.
Two mense losses.
defenses. Tokio admitted merely
small and ancient British destroy¬
A further Japanese invad¬
that
a
little damage
was
sus¬
ers
moved out of the base late
ing fleet moved on the sec¬
tained, and confirmed our own
last week, and engaged a superior
ondary Dutch naval base of
official report that 11 airplanes
force of Japanese naval units. In
Amboina, late last week, and
were lost in the battle. The real
this
engagement
the Japanese
the final issue of that engagesignificance of this raid is, of
turned
tail and fled, leaving a
mentis in some debut. Heavy
course, in the start of offensive
British destroyer sinking, while
aerial bombing by the Japa¬
action by our Pacific Fleet.
losing one of their own destroyers
nese
preceded a landing by
in the unequal battle.
Western Atlantic
reports
s
produced
conflict
gigantic
ap¬
If the Far East is.
discontent.
until help can come, as assuredly
more
influence
in
the policy¬
it will come, will be accomplished,
making central war boards.
A he said. There is
plenty of water
proposal for a loan of $500,000,000 in the island for the sizeable
to China was announced by Pres¬
population, but less is known of
ident Roosevelt, Monday, and the
the food supply.
Just before the
British Government acted on the
siege began, it appears, a British
same
day to make £50,000,000 fleet of
transports reached Singa¬
available to the Chungking re¬
pore
with reinforcements. The
gime. These sums are designed to Australian Army Minister, Fran¬
assist China not only in the war
cis M. Forde, declared at Can¬
effort, but also in her internal
berra, Tuesday, that resources of
economy.
the
United
Nations
are
being
Arrival of American troops in marshaled for the relief of Singa¬
Northern
\
;
greatest of all battles
parently is that of the Macassar
and China
and
have shown signs of
side,
Burma
de¬
a
cree, Prime Minister Churchill already has indicated the
reasons
for
the inadequate
tions
Thursday, February 5, 1942
was
port
More satisfac-1
word that the Pan-
Maine, which last week
reported
at
attacked,
battleships,
predicted
■
week ago the halting
a
But1
of the Germans and Italians.
executed
a
sharp
turn
toward the coast which took
the,
surprise, and
Bengazi fell once more to the
Axis troops late last week.
From
that important coastal point the;
British
Axis
again
units
by
resumed their march,
carrying them far
supply bases. Harrying
attacks by British Empire units,
are slowing the Germans.
which again is
from their1
was
A' Cabinet
crisis
developed
in
reached
Egypt, Tuesday, which may have
some bearing on the struggle. The
The Navy Department in Wash¬ youthful King Farouk and the
ington announced late last week British authorities apparently are;
port safely.
that counter-measures
odds, for, London, stated that,
loyalty of King Farouk to
ingly effective. Breaking its rule the alliance is by no means above
of silence as to submarines ac¬ suspicion."
In Irak and-Iran the
tually sunk, the Department made British are reported to be main¬
known a report from an aerial taining a close watch, in order to
pilot which is sufficiently re¬ prevent "Axis propaganda- seeds
markable to warrant the action. from flowering.
submarines
are
"Sighted sub,
pilot said.
against the
becqming increas¬
sank
same,"
at
,
"the
the
Russian Advances
Strenuous Russian drives against,
Churchill And Hitler
the German invaders
Pronouncements by the leaders
of the
opposing forces in Western ing
Europe overshadowed the actual
war developments in that theater
of the
are
continu¬
ing, and form the most encourag¬
reports
from any of
which
the
currently received
the many fronts on
United
Nations
are)
gigantic conflict in recent battling the Axis aggressors. There
The fighting was confined were signs, early this week, of.
days.
to. aerial
bombing,
which
was
intensified German efforts to halt
largely sporadic in nature. British the advancing Russians, While the
of winter prevails,
airmen hammered at the nearby bitter, cold
THE COMMERCIAL
Number 4042
Volume 155
of
however, there seems to be every
likelihood
of
fresh
Red
Army
the
t
rely
functions
degrees below zero.
fort,
German
the
be
ously
would
beyond that.
looking forward to
the Spring is indicated in heavy
enlistments within the Reich, and
troop movements eastward, re¬
ported from Stockholm and Berne.
are
practice obvi¬
unfortunate
the
although
commanders
British war ef¬
be condoned,
the
will
fact
not
that
become
embittered
elected Governor. When
a vacancy
that
country
because occurred in the Senate from Min¬
while he was working out these
nesota, Stassen appointed him. As
treaties with the European con¬ usual, his coming here was ac¬
tinental
countries,
Hitler
was companied by a lot of publicity to
moving out towards them and the effect that here was a Sen¬
nullifying his efforts, and Hull ator who had been a newspaper¬
was responding by
tightening the man, who was therefore unusu¬
economic
squeeze
around
Ger¬ ally smart, who, in fact, could
many.
The great game of inter¬ read and write. What the radicals
national politics/is one of per¬ have done to him since he reached
might
it
not
towards
purchases
for
sary
40
the
to
did
Hull
for
financing is absolutely neces¬
en-
temperatures ranging down to
That
t h e
pay
equipment
rely almost
British
in
already
will
States
in LatinAmerica, via the lend-lease
route. To the extent that such
mechanized
on
a
poorly, if at all,
Germans
which
whereunder
United
cavalry units which can maneuver
even in the worst weather, where¬
as
plan may be
that
adopted
Russians
the
give a' ago he was a reporter for the St. Massachusette, Rhode Island, Con¬
instead! Paul "Pioneer-Press" covering tee necticut, New York, New Jersey,
of easing the situation of
Ger¬ State Capitol.
ennsylvania,
Maryland,
Dela^..
He knew the boy
ware, and the District of Colum¬
many in the family of nations, wonder, Harold Stassen, who w *
History
chapter
late
suggested
Jr.,
whether
Mor-
Henry
Treasury
last week
against the Reichswehr.
have important
successes
for
the
genthau,
583
& FINANCIAL CHRONICLE
Senators in. the
sonalities...
' A.,y
here is nobody's business.
They
Chamber, ratification was voted
Be
that
as
it may, it would have cultivated him and told him
last Thursday in Washington of
seem
to, be a tremendous thing how tliey are glad to see a Sen¬
Chancellor Hitler referred only the treaty with
Mexico where¬
to
remove
the
tariffs
of
the ator who is smart, having been a
briefly to the Russian front, in under numerous small and some
American continent by executive newspaperman,' not one of those
bus address in Berlin, last Friday. more important claims are settled,
decree, or even with Congres¬ old: reactionary Senators, but a
'•'We have" before us an opponent on the basis of long-term pay¬
sional authority under the guise man who understood the
"new
superior in numbers, but in the ments by Mexico of $40,000,000.
of war's necessities. With the Del¬ order," on account of his being
Spring we shall be as numerous," Some stringent criticisms of the ano
report that many of these young and also a former news¬
Hitler declared. "We shall defeat
'one-way" Good Neighbor policy
They've done a goou
per- paperman.
him again by force of arms," he were voiced as the accord was economic changes will be
job on him. It's pathetic. Such a
added, as he promised the de¬ ratified. The controversy over thej manent, is the statement of the
good job on him has been done
"expropriation"
of I0?1;11 ^OHare McCor
pressed Germans fresh victories Mexican
mick of the "New York Times," that he wants to know if business
in 1942. Moscow authorities coun¬ American and British oil proper¬
who after talking with Mr. Roose¬ men serving here might not be
tered with an assertion that Ger¬ ties was
not finally settled
by
velt, reported that he envisaged a "prejudiced in favor of the cap¬
man
losses have been too heavy this remarkable document, which
world without customs or tariff italist system.'';' '
•'
to permit of a resumed offensive
constitutes only one of its grave
barriers.A: A:: A,;-A
;
defects. a
by the Reichswehr.
;a?a a^a*
?•/
In L.e meantime, it is impos¬
The
equivalent
to
Britain's
With only nine
,.
.
Official
of
reports
the
fighting in Russia remain
tual
the
German side, and remarkably
verbose but not too revealing
laconic
extremely
on
Berlin
side.
Russian
the
on
merely remarked from day to
day that heavy fighting con¬
tinues.
Moscow
announced
drives
sweeping
and
sectors,
Ukraine
the
Leningrad
But
dozen
a
of
these
as
into
along
the
identified
were
moves
in
some
and
sector.
occasion,
Moscow
-
Moscow,
on
specifically withheld names
of towns retaken, on the al¬
leged ground that such action
under siege,
the
of
more
commentaries
Russian
/AA?,/■• ■
A..
southward, on the
Peninsula, the Russians
on
Monday that their
the
to
Crimean
admitted
hold
re¬
which is
perturbing
the
on
claims.
Far
German
Leningrad
commanders.
mains
one
the
confuse
would
been
had
Theodosia
on
broken by the Reichswehr, Berlin
made
that
action
known
two
the sinking of
German troop transports in
many
the
Russians
The
earlier.
weeks
claimed this week
The
Arctic,
front appears to
That the Rio de Janeiro confer-
ac¬
Russo-Finnish
be stabilized, for
ington
desired
achieved
•
quite
not
Inter-American
conference in Rio de Janeiro, the
of
results
the
,
which
gathering
ended Jan. 28 have amply justified
the
made to unify
Argentina and
efforts
this hemisphere.
great
refrained
Chile
from
immediate
of diplomatic
severance
relations
one
action.
such
took
even
it
And
re¬
hemispheric sanctions against the
world
aggressors.
the official termin¬
ation of the conference, delegates
Following
from Peru and Ecuador signed on
Jan. 29 a protocol for the settle¬
ment of the
century-old boundary
which
dispute
embittered
relations between these countries,
and occasionally
brought about
often
conflict.
actual
Ecuador will
re¬
ceive about 80,000 square miles of
the
disputed
boundaries
if
the
of
this
have
area,
and permanent
to be drawn. Even
are
ancient
be
to
quarrel,
counted
it would
success.
a
number
putes
of
other
which
also
territorial
dis¬
should
set¬
tled amicably.
*"
•
be
'
The conference already has
been followed by some inter¬
esting developments and
gestions
all
©f
with
in
Washington,
which
can
equanimity.
be
sug¬
not
viewed
Secretary
the
round
of press conferences
which go on
every day in Washington.
Such
information about the goings-on
in Washington as gets out is due
all
to
The
program
delegates in
to provide
by leaders in the field
of Government and war produc¬
the
among
attendance
well
as
as
addresses
tion
agencies, banking business,
industry. Mr. Koeneke in his
and
comments said:
The
in
problems
credit
the
that have arisen this year
field
because of America's entry into
the
demand
war
"shirt¬
a
sleeve" working credits confer¬
ence
for banks at which more
intensive and detailed considerbe
tion
can
field
than
the■, credit
given
limited
has al¬
time
lowed
during the previous an¬
nual regional conference.
We
day
arranging the three-
are
delegates
during
of
sessions
bring to the
the morning
day addresses
to
program
each
by outstanding men in the va¬
rious fields of Government and1
private business
cerned
production,
and
held
be
to
sessions
afternoon
to
who
are
defense
with
con¬
and
war
permit
of the
the
clinic
small, informal
We are also
arranging two evening sessions
that will be given over to ad¬
dresses by leading economists
and a panel discussion of the
economic aspects of the war.
as
discussion groups,
Soldiers' and Sailors' Civil Relief
price structure on the basis of the
correspondents.
There
has
goods coming in free from our been considerable agitation among Act, FHA Title I loans, and the
(Continued 1mm First Pag-?)
Federal Reserve Board's Regula¬
Verily, his advisers of late to cut these
conjunction with representatives neighbors to the South?
tion W will be discussed.
The
of ' the
Canadian
Government,! we are moving rapidly these days, conferences out on the grounds
third day of the clinic will pro¬
that these are war times and that
worked out a plan whereby all
vide
intensive
consideration
of
tariff barriers would be removed!
To my mind, there is nothing he is liable to make a dangerous
commercial
credit.
Representa¬
He is reluctant to do so,
of the trends slip.
"for
the duration
of the war" more significant
tives of manufacturing, business,
than
a
question which Senator pride entering into it as much as
on all goods affecting war articles.
and Government war
production
Manifestly, most anything made1 Ball
of Minnesota, a relative anything else.
supervisory agencies will speak
Last week he slipped badly, His
these days comes under the head youngster,
asked Donald Nelson
at the morning session.
coordinator of housing, Charles F.
if war materials.
Insofar as this the other day.
For months there
Headquarters for the clinic will
American-Canadian agreement is has been an agitation against the Palmer, a protege (of Mrs. Roose¬
be the Waldorf-Astoria Hotel.
concerned, agricultural products Dollar-a-year
men.
How
can velt's, and of whom it is difficult
lumber
md
certainly
come
under these men serve two masters, it is
asked.
"
the heading of war materials and
are
A
A
A
,,
,
•«v)+ir]f' U
is Henry
on. the
right hand
man
^
?. v£, ?,
be necessary.
ascei^ai5
the
acme
would;
?r
Following this has
at
agreement
Rio
that he has
see
ated
anything,
coordin¬
Congres¬
a
the
that
Committee
sional
ever
told
hous¬
..
■,
Supreme.
«U?Ci +i?°
to
,
I
It is a part of the class warfare
1 still running through the country
^ that there has been this agitation.
Wallace ss. has had a two pronged purpose,
affected by the agreement.
by
the New Dealers wanted to
get the jobs out of the hands of
the business
wanted
They not only
men.
salaries which
the
would
in Washington was
ing situation
getting so bad, that he was afraid
the
"parasites" would have to be
removed.
A-A
next
The
armed with a study of the situa¬
tion
Estate
of
a
Mortgage Clinic,
nation-wide series
such
clinics, will be held in
York, March 26-27, thus al¬
lowing
ample
consideration of
New
this
lending field
in the war
Mr. Koeneke said.
Roosevelt,
Mr.
day,
A real
the fourth in
emergency,
prepared by Palmer, walked
into
the
correspondents'
with the jobs for their fellow right
which all tariffs between Latin
question: "How about the para¬
intellectuals, but they wanted ab
Amei ican
countries
and
this
soiute control of the war program, sites."',, AA'A A:A AAA- '■/'"A'
ountry would be removed
on
With his mind unquestionably
They want men of their kind- in
WPB Amends Sugar Order
go
Board
Production
War
The
on
■
materials
war
tion of the
and
for
the
dura¬
It develops now
that Mr. Perkins.-in his research,
A,
hundied
Washington.
war.
^ayke a
old,Jby which
an
or so years
.Executive
.
fhnHfi n?e-
^
But
f
country
country
ter
men,
the
And I
tive
since
ever
governments, would
•
who without understanding
broader implications of the
writer
that
tremendous
am
not
merits
the
going into the rela¬
of
tremendous
the
mat¬
implications.
the
tariff.
It
advance
New
made
when
Deal
is
a
Congress
cherished
the
parasites the
people who live in 20 room houses
on
Massachusetts Avenue.
The
who unblushingly belongs
to that part of the Andrew Jack
troduced
year
a
bill
providing
that
The
New
such
as
Sumner
staunch
Davies
maintained
and
such
homes.
Immediate
press
-
agitation
came
to
a
head
ABA Arranging
Program
mittee.
"
Senator
Ball
asked
Tuesday's
For
"Action"
Credits
In N. Y. C. March 4-6
Nelson
if
„
the Dollar-a-year men "were not
prejudiced hi favor of the capital(lst system;'
Gearing itself for further action
in the credit field during the war
the American Bank¬
Association
is
planning
a
emergency,
ers
_
Notwithstanding
that
Nelson "stripped-for-war-action" credits
international has Played along with the New clinic to be held March 4-6. in
evil, ill feeling, wars and what- Dealers this one made him gulp. New York City, to replace its for¬
not.
annual
Eastern
Regional
Well, it is doubtful if any Wouldn't it turn out to be an mer
man in all of our
history has ever amazing thing if the business men Conference, it is announced by
been given freer
reign to carry
this country, if the great major- Henry W. Koeneke, ABA Presi¬
out his idea.
We know that the ity of people, in fact, were "prej- dent, who is President of the Se¬
result has not been to ease the "diced in favor of the capitalist curity Bank of Ponca Citv, Ponca
tension
City, Okla. The area for the clinic
among
nations
in
the system."
The
slightest, that peace has certainly
youngish
Senator
Ball embraces all New England and
not come to men.
doesn't understand yet why Nel- Middle-Atlantic States, including
In
the
idea
that
tariffs
the root of all
fact, there is
a
question of
son
gulped.
A
couple of
years
Jan. 27 revised its sugar conserva¬
tion
order
stead
of
upon
.
by
Maine, Vermont, New Hampshire
base
the
in¬
period
1941,
making
1940.
.
allocations of
which
sugar
will be made to wholesalers,
job¬
At the
bers and industrial users.
time the Board amended the
same
order
that
so
will
receivers
be
percentage
of
the
amount of sugar used or resold by
them
during
a
corresponding
allotted
a
period
1941.
in
supplementary
and
amount
The first such
order under this
80%
as
the
February
as
the
fixes
amendment
result:
conference of this week was
called off.
recently before the Truman Com¬
~
Welles
other
Joe
be given the Dollar-a-year
A
jobs.
,,
that
Dealers
Senator McKellar of Ten- large,
a
in
big home
Avenue,
Massachusetts
attack, figure they would get a lot reaction was terribly bad. It de¬
°I patronage out of having $8,000 veloped that Palmer himself was
an(j $io,000 a year men do the living in a place just about as
a
fact that the free traders
1934,
the
Cousin A, who has a
on
President classed as
m fav?.r ofdecree. It "young men" at $8,000 and $1.0,000
the free!
executive
this
has
them
born, an issue on son school which taught that to
Pe°Pie have at times the victor
goes the spoils, once in
by
strikes
abetting
was
k,
traders
aiding and
nessee,
almost
cpfuoJ?
hp
on
have been Senators and Congress
>51 words, the old
vfffw its ups and downs in this j0b.
-J16 1riff'a]l lssue which
as had
were
There remain, it may be added, a
is
Commons
shortly
area.
cussion
offi¬
the
had
achieved
voted Cordell Hull the
reciprocal
than the settlement
trading powers.
Hull had long
more
of
banks in
for the
credits clinic is arranged to al¬
low maximum informality of dis¬
this
goods, cheaper made goods, come House of Commons to answer
Export-Import Bank of Wash- in behind these industries while questions.
In Washington some
The first day of the conference
ngton will lend Bolivia $5,500,official is almost daily being sub¬
they are hors du combat?
will be given over to consider100 for the development of her oil
Furthermore, Leon Henderson jected to about as searching an
tion
of
agricultural credit and
industry.
This sort of bargain has been given control of the inquiry as could be imagined.
farm loans in the war emergency.
emphasizes the "one-day" nature country's price structure around
Notable
among
these confer¬
The clinic's second day will fea¬
of the Good Neighbor program.
which wages are paid, our stand¬ ences are those which the Presi¬
ture
consumer
credit
problems
ards of living maintained.
Will dent holds. He prides himself on
The
he attempt to establish a lower being able to give and take with arising from the emergency.
gathering
nothing
that
announced
was
,
solutions which, in effect, impose
House
sent
cial
the
States joined in
two hesitant
envisage
be
fairly obvious. Dispatches from The fact is that American busi¬
Bolivia indicated, early this week, nesses
are having to
shut down, to the 500 or more newspapermen
.hat American claims for oil pro- that
long built up trade marks or who go from one official to the
perty seizures by that country J advertising slogans will be mute other and subject him to a severe
were settled at a cost to
Bolivia |or
duration of the war.
Is it quizzing.- In Britain, Churchill is
)f $1,000,000. At the same time,
hailed
before
the
contemplated to let a flow of periodically
with the Axis Powers, but one
by
all other American Republics
to
Is
Solidarity
was
the
at
this writer
probably made possible some the broad
potentialities of the
private discussions leading to set-1 making of
c£ the American
lements of long-standing disputes
continent into one economic unit.
,
ran-American
for
3nce
the time being.
Although that degree of PanAmerican solidarity which Wash¬
sible
Invitations to the clinic will
bia.
period.
Previously, a receiver
(wholesaler, jobber or industrial
user) could receive as much sugar
in any month as he received dur¬
ing
corresponding month in
the
1940.
Price Administrator Leon
on
under
the
scheduled
early
will
in
rationing
sugar
to
become
three-quarters
a
OPA's
week.
The
reduce
and to
per
aims
to
per
to
from an av¬
of about 74 pounds per per¬
in 1941
users
pound
plan
consumption
son
person
restricted
be
of
plan,
effective
each
February,
probably
erage
Hen¬
Jan. 26 announced that
derson
cut
to 50
pounds in 1942^
supplies
from 40 pounds
capita.
to industrial
to 27 pounds
(
THE COMMERCIAL & FINANCIAL CHRONICLE
Thursday, February 5, 1942
exports.
Upon Mr. Henderson's
recommendation,
Secretary", of
State Hull sent the following tele¬
gram to the recent Inter-Ameri¬
-teerican Ccnferease
can
The conference of Foreign Ministers of the 21 American repub¬
Emergency Price Control Act of 1942 was enacted into law
30 when President Roosevelt signed the legislation.
This
action came six months after the President had requested its passage
The
lics which had been in session in Rio de
Jan.
on
as
check
a
and
defense
rents- in
over
areas.
However, with regard to commod¬
ity ceilings the bill contains vari¬
restrictions
ous
,
may
in
ucts,
President
which
issued
he
known
low
how
to
as
be set on farm prod¬
approving the bill, the
ceilings
statement
a
the
termed
"the
as
in
measure,
Price
Emergency
decide
sooner
that its continuance
no.
security.
v
• •.
Powers.
.
Final
action
Congressional
the bill
(noted in
Jan. 27
came on
on
price control legislation last
July 30* (see issue of Aug. 2, page
628) and the Administration's bill
was introduced in both houses on
for
Jan. 29
issue, page 440), when
the Senate adopted by a 65 to 14
vote the conference report worked
our
cen¬
with
border
''V/'V'V'-V
.
yd;.
Among the economic resolu¬
tions
adopted were those calling
breaking off of commer¬
the
for
cial and financial
trol
Axis
of
tionals
and
companies
na¬
alleviate
American republics.
Sumner
Welles, Under-Secre¬
State,
of
tary
who
headed
the
was
able to the farmers and the Presi¬
delegation, returned
Washington
Feb. 1 from the
on
conference to
report at length to
President Roosevelt and
Hull
State
of
tained.
Miami
the
on
Jan.
31
Secretary
results
at
after
a recordasking for con¬
The Senate^ breaking airplane flight from Rio
dent
House conferees then took a week
de
by a vote of 286 to 112. Before
adopting the conference report,
the House on Jan. 27 rejected, by
for settling
faction with the accomplishments
versions,
of
by
a
The
intervened,
siderable
differences in the two
leading to final Con¬
approval
gressional
Jan.
on
27.
Pointing out that under the new
Representative Wolcott
(Republican) of Michigan to re¬
could be re¬
quired for the conduct of almost
any business,.Associated Press ac¬
counts from Washington Jan. 26
of
vote
189 yeas
bill
the
turn
instructions
led
Press,
coalition"
nate
a
revise
to
it.
Repre¬
Wolcott, said the Asso¬
sentative
ciated
conference with
to
"powerful
a
which sought to elimi¬
system of business licenses
designed to enforce price control
and which also believed a board
that mignt
ceilings
price
be
fixed.
compromise bill does not
embody the drastic Senate "emer¬
Tne
amendment
parity"
wage
gency
TV
1
■
•
If
provisions of a license were
the offending party
would be warned, then the Gov¬
violated,
ernment
court to
That
of review should be set up to pass
on
licenses
legislation
said:
the
expressed
satis¬
his
and
associates
welcomed back by Secretary
Hull on Feb. 2 and congratulated
on
their efforts.
Washington
A dispatch from
to
the
Mr.
Hull
2
the
return
of
the
American delegation to the Rio
Upon
conference,
Welles,
them
with
court
by
Mr.
welcome
to
felicitate
the
splendid
home
them
and
upon
which has attended their
success
channels.
I
headed
desire to
unremitting
at the
efforts
Rio
conference, efforts which were
ity
directed
objective of hemispheric soli¬
darity and mutual defense.
I
Noting that "in all, about 35%
levels with industrial wages of the total value of wholesale
permit farm prices to rise to goods is already under price con¬
120%
of parity
before ceilings trol, as is almost half the field of
could
be
imposed.
President metals and metal products," fur¬
Roosevelt voiced his opposition to ther Associated Press advices Jan.
at
a
conferees
conference with
on
the
bill
on
He said it would have the
Jan. 13.
effect of making
the measure one
to compel inflation rather than to
Here
are
its prin¬
the
opening session of the
Conference on Jan. 15, Secretary
production program.
Except as to farm prices, the
levels between Oct. 1 and 15,
also called upon the nations for
unity, "not only in the measures
which must presently be taken
However,
on
the Senate farm
giving the Sec¬
retary of Agriculture veto power
any farm price ceilings fixed
the Price Administrator, the
over
by
Administration
President
in
had
special
a
not to divide
The
out.
lost
the
asked
Senate
message on Jan. 8
cbntroi over prices,
that '"the whole price
structure is linked together."
claiming
On the other major
points in the
control legislation the Administra¬
tion
was
successful.
These
in¬
cluded provisions for a
single ad¬
licensing
of
busi¬
curb ceiling
violators
ministrator,
to
nesses
and
tor
giving the Price Administra¬
to buy and sell com¬
power
modities
in
order
increase
to
production and
maintain price
stability. The House had favored
a
five-man
board
review
to
Administrator's rulings and
ously refused to accept the other
two
sections, whereas the Senate
had voted for all three in
its bill
on
passing
With regard to farm
price ceil¬
ings, the bill provides that these
cannot be fixed below the
of
the~ following
farm
levels:
highest
average
of
fiction
illusory
an
and
to
evict Axis
agents from their territory.
He
world, but also in order that the
limited, they could rise to 110%
American
1919-29,
tween
1
Oct.
Dec.
or
or
15,
price be¬
the level on
1941. Farm
price orders would be subject
to approval of the Secretary of
Agriculture. The Administrator
also could buy and sell com¬
modities to stimulate production
and control prices, and would
have the power
to check profi¬
teering and hoarding.
Rent
in
the
the
the
of
the
affected
com¬
by
price
orders, except farmers and fish¬
ermen,
would be licensed. After
violation and
courts to
long
as
a
warning, the
could
suspend
as
a
ask
the
license for
12 months.
Criminal
the
At
the
of
the future,
after
his
of
start
talk,
Mr.
United
States
pursued
prior
by the Japanese on
Dec. 7 and declared that the great¬
est
assurance
that
the
American
family of nations can, safely sur¬
up
to
$5,000 fine and two years in jail
also are provided for violators.
unity
against
Axis aggression, Mr. Welles
is imperative not only
for
of- the
defense
said,
the
Hemir
Western
"but also
itself,
sphere
American
the
of
mination
the
the
of
world
victory is won."
serted:
'
of
the
after
the
nature
future,
He further
V
:
When
peace
the
interest
T
-
■' h
is restored it is
the
whole
of.
lics present a united front and
be able to speak and act with
moral
the
authority
which,
to
they
power,
and
number
their
entitled.
are
Mr.
also
Welles
informed
the
United
States is prepared to co-operate
wholeheartedly with the
other
American
republics
in
the economic measures
the conduct of the war.
handling
related to
the
time
issue
There
drawn.
is
can
be
no
to
upon
generation of men
in every quarter of
the globe.
When
that
time
comes
men
of
goodwill must be prepared
ready to build with vision
afresh
upon
new
and lasting
foundations of liberty, of moral¬
ity,
of
justice,
and,
by
no
means
least perhaps, of intel¬
ligence.
In
the
attainment
of
that
great achievement the measure
of
will
devotion
our
of
measure
the
be
the
world's regen¬
eration.
In
a
States
radio address to the United
on
marized
Jan. 24, Mr. Welles sum¬
the
conference
accom¬
plishments
said
that
of
result
exists
more
have
utmost
time and
already met
that
to
up
"we
in attain¬
success
which
objectives
we
He also stated that as a
the conference "there
today
a
solid and
Americanism
more
a
practical,
more
than
a
real Pan-
has
ever
ex¬
isted before in the history of our
hemisphere."
The Office of Price Administra¬
Congress
prpss
unless
the President or
by
are
rates
charged
publishers
of
newspa¬
books
and
periodicals,
associations,
railroads,
unit
mon
the
to
alleviate
American
results
from
injury to
of
republics which
the
control
and
It
dollar.
trade
have
and
a
definite
.
value wherever it was used
The
could
thought was that if we
an agreement in this
get
there is a possi¬
bility of extending it to the rest
hemisphere,
the world.
of
If
could get some currency
we
unit
and
to all the
common
lics
the
Canada
to
Repub¬
and
much
that
closer
some
currency.
would
dollar
own
would
to. eaca
be
It
our
it
stable,
currency
purely an
It could be
or
a
cur¬
new
rency.
Pegging
other
our
dollar might
not
acceptable
currencies to
be simpler but
other
the
to
countries.
But
we
should be intelligent
enough to work out a method
of debt settlement between the
for
goods
American
feel free
could
received so
businessmen
export their
to
goods to any country in this
hemisphere and get paid in a
currency of fixed value.
Civilians In War Work
Abroad Should Continue
President Advises
The White House indicated
Jan.
16
that President
on
Roosevelt
civilians
American
believed
em¬
ployed abroad on essential war
projects should "continue with
their present labors rather than
return home
for service in the
ranks of the armed forces."
The
White House statement said:
reaching
the
in effect that
many
citizens of the United
States,
employed
abroad
on
projects essential to the conduct
of
the
war,
are
wondering
whether they should return to
this country for active service
Reports
are
President saying
the
with
forces—the
armed
Army, Navy and Marine
tion
Apply To
Latin-American Exports
pers,
as
needed,
old
the
Corps.
reported in this connec¬
that virtually all of these
It is
main in effect until June 30, 1943,
OPA
like
would be recognized as a com¬
and
He con¬
render financial and
assistance,
where
hemisphere it
naturally be very, very
useful.
It could be something
peace
Price Ceilings
technical
this
in
be
to settle our
would
export
this
At
clearly
The United States stands pre¬
pared
us
other.'
nounced on Jan. 24.
It was said
public utilities, radio, motion
that every effort will be made to
pictures or other theaters, out¬
door advertising firms, doctors, see' that price ceilings would not
interfere with the normal flow of
and lawyers.
Appeals could be taken from
balances
could
method
some
worked out for
us
concluded:
Mr. Welles
limitation
1,
If
re¬
help the flow of trade and bring
their
the domestic economy of any
Oct.
Mr. Morgenthau's
follows:
as
of
orders, either to the Ad¬
ministrator, a special court of
Federal judges, or the Supreme
Court. Wages are exempt from
on
marks
kind of fund back of it to keep
sought."
Foreign Ministers that the
an
of their enlightened
standards, as much as by reason
by reason
upheaval "lies in with the
the
unity with which we face the ing
peril."
as
of fixed
value.
A
Washington dispatch
Jan. 22 to the New York "Times"
currency
repub¬
to
1941, or
1941; average farm prices
for
1919-29; or 110% of parity
price levels. (Parity is a price
which would give farm products
the same purchasing power they
had in the 1909-14 period.)
The price control bill will re¬
prices
Dec. 15,
international
as¬
'
established
dollar be
trade
reported
Pan-American
the world
tinued:
penalties
lics.
nature
to the attack
common
Buyers and sellers of all
one
world
the
of
Welles reviewed the course which
the
modities
western
our
victory is won."
could be ordered in crowded de¬
areas.
of
determination
vive
fense
defense
republics, joined as one,
may prove to be the potent factor
which they should be of right in
maximums, with April 1,
1941, charges as a standard, also
Administrator
Jan. 10.
urged the non-belligerent
1941, would be used as standard.
farm
prices could be
the
previ¬
Welles
Before
of parity, the average
providing
and women
At
neutrality"
bloc's amendment
genthau recently expressed the
hope that some kind of world
"tattered
nations.
American
prices are
excessive and threaten the war
provision for
World Trade Dollar
Secretary of the Treasury Mor-
that
results
whenever he believes
House
Morgenthau Favors
nations
fine
the
110% of parity as the basic point
the
bill
■
tion
that
sure
is retained.
the
-
therefore, approximate
the domestic price plus normal
export, charges.'' V\;T
would,
.
essential re¬
quirements for the other repub¬
common
cipal provisions:
A
single
administrator
is
authorized to fix price maxi¬
mums
on
selected commodities
In the final version of
control it.
ports.
The price paid by the
Latin
American
purchaser
American nations to abandon the
am
of price control is
tremendously by the
measure.
the
toward
already achieved at Rio will be
translated rapidly into effective
action
throughout all of the
The scope
enlarged
toward
are
United
until Hitlerism and
its monstrous parasites are ut¬
terly obliterated, and until the
Prussian and Japanese militar¬
ists have been taught in the
only language they can under¬
stand that they will never again
be afforded the opportunity of
wrecking the lives of genera¬
28 stated:
new
assistance in the
efficient operation of merchant
vessels.
."
He also spoke
of
the
United
States
policy
every
world that the American
saying:
as
and
this provision
render
New
quoted
Feb.
"Times"
York
which would have tied farm par¬
House
ready to enter
arrangements
for
States Maritime Commission to
that
two-weeks'
Welles
Mr.
petition a State
suspend it.
court
might, after a
normal
He
Janeiro.
were
could
through
ihto
the
acquisition of supplies of basic
and strategic materials, and to
co-operate with each - of the
other ' American
republics
in
order to increase rapidly, and
efficiently their production for
emergency
needs.
Finally, it
stands ready through the United
are
speculation and profiteering and
yet will provide sufficient mar¬
gin over domestic ceilings not
to interfere with flow of, ex¬
is
broad
this
of
delegates
pleased to inform you
being established in
States export price
ceilings
on
scarce
materials
which are calculated to prevent
the
'<
in order
republics,
conference,
which was directed toward the joined as one, may prove to be
the
common objective of hemispheric
potent
factor
which they
should be of right in the deter¬
solidarity and mutual defense.
hearing, suspend tne license for
not longer than 12 months and
the aggrieved party could ap¬
peal
on
revision.
to 2iu nays a
a
motion by
"It
f,'■
■
at¬
arrived
Welles
Mr.
joint Senate-House com¬
House approved the
conference agreement on Jan. 28
out
mittee.
We
there
common
our
'.'v ;V:/'
defense.
the
policy:
of
severance
tivities inimical to
.
considered too favor¬
was
and
to
the
to
1
con¬
injuries to the economies of
any
United States
83 to
intercourse,
measures
speeded up.
However, the measure passed by
the Senate on Jan. 10 by a vote of
action
dispute
Peru..
Aug. 1
the war,
,-Axis
tury-old
following this country's entry into
been won."
the
lowing the settlement of its
(referred to in these col¬
tant weapon in our armory against umns of Aug. 9, page 767). Fol¬
the onslaught of the Axis powers." lowing months of hearings and
While he terms "the act taken all delays in committee the House on
in all" as "a workable one" he Nov. 27 passed its version of the
(see issue of Dec. 4, page
states that the enactment of the law
legislation "does not mean that 135-3). The measure then went to
the
battle against inflation has a committee of the Senate/where,
Control Act of 1942"—"an impor¬
with
However, Ecuador later
broke off diplomatic relations fol¬
Congress
asked
President
The
relations
sever
longer required in the in¬
terest
of
national defense and
is
on
Conference at Rio de Janeiro
informing
diplomatic relations with Japan, Germany and Italy and the setting
up of joint military, economic and financial boards. Up to the closing
date of the meeting only Argen-T
———
tina, Chile and Ecuador did not
curbing of alien economic ac¬
head of the Office of
Price Administration, as administrator of the Act with power to
put ceilings over all commodities
of Leon Henderson, present
name
Janeiro, Brazil, since Jan. 15,
Jan. 28 after resolutions were adopted
recommending to their respective governments the
Mr. Roosevelt on Feb. 2 sent to the
against inflation.
Senate the
formally adjourned
was
-
tion will
provide the same protec¬
purchas¬
tion for Latin American
ers
as
for
Price Ad¬
applies to goods sold
domestic consumption,
ministrator
Leon
Henderson
an¬
citizens
are
performing services
of
great value where they aredoing work most helpful to the
United States, and to the United
Nations at war with the Axis
and Japan.
The President therefore feels
that
these citizens
tinue with their
rather
service
than
in
should
return
the
armed forces.
con¬
present labors
home
ranks
of
for
the
@FedFRASER