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Final
1'
ESTABLISHED OVER 100
In
YEARS
2 Sections-Section
A)*
Edition
andU^m
ommatciaL
/
1
vflKUJN ILLl
Reg.
^ Volume 159
New
Number 4246
U.
S.
Pat.
Office
York, N. Y., Thursday, January 13, 1944
Price
What's Behind Present
Financial and Economic Problems
Seen
Reducing
Treasury Deficit And
Inflationary Pressure
Eased If High Volume Of Production And Employment President Of Erie Railroad Stresses Fact That Because
Is Maintained And Tax Policies Advocated Are
Adopted Of Manpower And Material Shortages Railroads Have
—These Include Abolition Of Double Taxation On Considerable Deferred Maintenance And
Expresses Hope
Dividend Income And Repeal Of Excess Profits Tax That Congress Will Act To End Taxation On Reserves
Set Aside For Expenditures In This Connection
Early In Post-War Period
U
When
your
President asked
me
to talk to
some
Apropos of the financial and economic; problems with which we
will be confronted, Winthrop W.
Aldrich, Chairman of the Board of
the Chase National Bank, expressed the
following views in the an¬
nual report to the Bank's shareholdtis:
' V
In
field
the
appeared. As
*
the
you
on
know, the railroads
the horizon that have
are now
operating under
jurisdiction of the War Department, having been taken over by
order of the President of the United
The President has stated that
—-—•—'
—
,
,of finance, the
;
of
record
Of Justice
Bring Order Out Of Chaos In
cal
operations
gives a picture
the
con¬
tribution
-goods and
in
ser¬
vices
made
to¬
ward the pros¬
ecution of the
Between
war.
on
It appears
end
a
of
of
about
months,
25
W.
W.
Aldrich
total
Federal
expenditures
came
to
$146,000,000,000. Of this amount,
$133,000,000,000, or 91%, were for
war
purposes.
Net
revenues
amounted to $52,000,000,000, and
the budgetary deficit of $94,000,(Continued on page 175)
Company of Indiana
were
complied with the procedure of qualifying with the Securi¬
Exchange Commission in all matters including that
of pegging the price of the bonds. The NASD, a legally eon-
Delaware Power
&
YORK
Exchanges
Geneva
HAnover
2-0600
Teletype NY 1-210
Woodruff
135 So. LaSalle St.
State 8770
Teletype CG 1219
be
t to
men.
be
of
a
changes
and
reconversions.
Three
en¬
couraging
changes in recent
weeks
disclose
that
supplies
of
basic
many
materials
n
i
n
are
outrung
war
needs,
a grow¬
ing number of
cutbacks
the
war
duction
pro¬
in
gram
lines,
in
pro¬
some
and
a
reduction
the
David
address
delivered
before the
Commerce
of
the
by
Mr.
Chamber
State
of
E. Williams
in
Treasury deficit 'and hence
(Continued on page 184)
In This Issue
Special
material
activities in the
*An
business
is bound
year
interest
Woodruff
1944 will
year
drastic
railroad
War, in that each
being handled by its
own
organization and they are
functioning to date exactly as they
were
before being "taken over".
In fact, the Army, has been in-
crystal ball to
easy one for
Come what may it
the First World
is
a
an
gov-
e r n m e n
and
with
items
and
reference
States
Wisconsin
to
of
dealer
of Illinois
in
appear
this
issue.
Illinois
For
consin,
see
page
170; Wis¬
172.
page
General index
on
page
192.
of
New
York earlier this month.
on
THE
172)
page
Brokerage
CHASE
OBTAINED
.*
SECURITIES
or
Buffalo
Williamsport
FROM
from
correspondent
Hardy& Co.
Members New
York Stock
Membersr New
York Curb
facilities
Exchange
Exchange
IN CORP OR AT IB
PHILADELPHIA
Albany
Pittsburgh
service with Chase
and Dealers
BE
HUGH W. LONG and COMPANY
64 Wall Street, New York 5
Troy
MAY
DEALERS
AUTHORIZED
Established 1927
BOSTON
OF THE CITY OF NEW YORK
Broaden your customer
for Banks, Brokers
R. H. Johnson & Co.
Rep.
|», N.Y. ^CHICAGO 8, ILL.
25 Broad SI.
E.
(Continued
PROSPECTUS
INVESTMENT
NEW
char^
the
by
Robert
Bond
Hirsch, Lilienthal & Co.
-
en¬
differ¬
delivered,
other
not
method of op¬
eration
used
Bay War Bonds
and
is
in
ent
victory
Members Hew York Stock Exchange
It doesn't take
acter than the
178)
Invest in
Common
London
rail¬
last
Co.,
NATIONAL BANK
Light
When
the
tirely
ties and
page
of
o n
seizure
week
acting in good faith as experience had taught them to act and
as the trade expected of them, and that the syndicate had
on
t i
p
roads
The available evidence indicates that the Underwriters
(Continued
inter-
no
Trust
&
figure out that the
now
of
a
of the bonds of the Public Service
there
as
The
dealers underwrote and sold
period
as
service.
usual organization of security
$38,000,000 worth of bonds for
the Public Service Company of Indiana. The syndicate was
organized in the usual way according to trade practice of
long standing. The usual agreements between the company,
the syndicate of underwriters and dealers were made.
that in 1938,
the
Bank
Philadelphia
assurance
r u
\
Pearl
1943,
-
that there will
By RAYMOND MURRAY
Harbor and
the
soon
is
be
the time of the
attack
of
terminate
Underwriting
Agreements Case?
country
has
n
r
railroads is to
The NASD
which
this
e
tion
Will The Department
Treasury's fis¬
of
v
go
mental opera¬
the
President, Corn Exchange
National
States, to avoid interruption of
transportation by threatened strikes.
<$>-
about railroads
you
By DAVID E. WILLIAMS
to
weeks ago,' we didn't see the clouds
since
Already Tested And Familiar To Us
Copy
Cutbacks
By ROBERT E. WOODRUFF*
Condemns U. S. And British Exchange Stabilization Plans Maintaining
That
American
Credit
Should
Be
Provided
Through
Channels
a
The Year Ahead
Railroad Performance?
Chairman Of The Chase Bank Sees National Debt Burden
Cents
60
15 EXCHANGE PLACE
634 SO. SPRING ST
JERSEY CITY
Syracuse
LOS ANGELES
Dallas
30 Broad St.
Tel.
DIgby 4-7800
New York 4
Tele. NY 1-733
Member Federal Deposit Insurance
Corporation
1
Actual Trading
Markets, always
BOND
International
Detrola
by expert staff in
Welder Co.
BROKERS
Securities
14 WALL ST., NEW YORK 5, N.Y.
TELEPHONE-RECTOR 2-6300
Y.
Security
45 Nassau Street
Tel.
REctor 2-3600
Dealers
Ass'n
New York 5
Teletype N. Y. 1-576
Philadelphia Telephone:
Products, Inc.
Enterprise
6016
Members New
York
Stock
Exchange
120 Broadway, New York
9
Members
5, KT, Y,
IRA HAUPT &CO.
New
York
Bell
REctor 2-7400
Teletype NY
1-635
Security Dealers Assn.
52 WILLIAM ST., N, Y. 5
Bell
Telephone:
Analysis upon Request
HART SMITH & CO.
REYNOLDS & CO.
INCORPORATED
MEMBERS NEW YORK STOCK EXCHANGE
N.
ALL ISSUES
*
Purolator
Kobbe, Gearhart & Co.
Members
England
Public Service Co.
Federal Machine and
Over -The - Counter
Bull., holden & c°
New
Corp.
«
New York
HAnover 2-0980
Teletype NY 1-395
Montreal
Toronto
Members of
111
Principal Exchanges
Broadway, N. Y. 6
REctor 2-3100
Teletype NY 1-1920
Thursday, January 13, 1944
THE.COMMERCIAL & FINANCIAL CHRONICLE
162
:Trading Markets in:
MINNESOTA & ONTARIO PAPER
Buda Corp.
Long Bell Lumber
: ;, BULOLO GOLD DREDGING
:'■it".BROWN CO. Cora. & Pld.
Common
!
KING & KING
Established 1920
York
New
Exchange PI., N.Y. 5
40
Members N. Y. Stock
HA 2-2772
Steiner, Rouse & Co.
MC PONNELL Br Co.
:
'
Members
1
New York Curb Exchange.
;
120
;
Members New York Stock
:,
Tel.
V
REctor
NY 1-1557
HAnover 2-0700
;
.
La.-Birmingham, Ala.
New Orleans,
BROADWAY, NEW YORK
Direct wires to
2-7815
Exchange
St., New York, 4, N. Y.
25 Broad
■
Exchange '':,
York stock
New
NEW YORK 6, N. Y.
Teletype NY 1-672
BArclay 7-0100
Telephone
1954
Walworth Pfd.
Exchange and Other Principal Exchanges
BROADWAY
115
Saltex Loom 6s,
>
Goodbody & Co.
Ass'n
Security Dealers
Birmingham Elec .7%
Remington Arms
Warren Bros. Class "B" & "C"
^
:
y;0 ADMINES
NARONr-W
United Gas Improv.
Members
Botany Pfd. & Common
-
;
Birmingham Elec. 6%
American Cyanamid Pfd.
:
,
PATO CONSOLIDATED GOLD
York Corp.
;
;
•
branch offices
our
NY 1-423
BELL TELETYPE
Go!. Rockwell Named
Axton-Fisher Tob., B
Du Mont Laboratories,
Visualizes Volume Of War Output
Higher Than In 1943, With Construction Nat'l At Pittsburgh
f
At
.the
annual
shareholders'
Sharply Reduced—Sees Shift From War,To Peace Econ¬
meeting
of the First
National
omy Involving Difficult Problems Due To Competitive Bank at Pittsburgh, Colonel W. F.
Aspects Of Reconversion And Cites One Example To Rockwell was elected a director
of the bank.
He is President of
Batt
L.
William
Com.
Elk Horn Coal, Com. &
New
'
Director Of First
New
England P. S. 6% PI. Pfd.
New
England P. S. 7% PI. Pfd.
This Year 15%
Pfd.
:
-
Kearney & Trecker
-
Mayflower Hotel, 5's, '50 & Com.
'67
Pittsburgh Hotel, 5's, '62 &
Central States P. & L. 7% Pfd.
•
Illustrate Point
'
Of Dangers
Warns
Policy
Inherent In "Obstructive'* Foreign Trade
Repayment Of Foreign Loans And Debts Must Be Made In
Goods, Principally Raw Materials—Nation's Metal Resources Held
[1
And. Says
Baltimore Stock Exchange
Members
120 Broadway,
N. Y. 5
WOrth 2-4230
Stock Exchange
Members New ,York. Curb
65
be interested in, dis¬
beginning is likely to hold for busi¬
ness; I accepted that challenge but with a good deal of trepidation. ^'
I can think of no year—no "single year in an already fairly full
life—when the uncertainties which lie ahead, the gravity of the prob¬
lems which are sure to arise, have loomed so large as do those in this
Exchange; ?,>•,
WHitehall 4-8120
Broadway
Teletype NY 1-1919 -V-r
Bell System
By WILLIAM L. BATT *
•
Chairman suggested that you would
Your
-
Members New York
,
£-3>'
V
Nearly Depleted
Teletype Nt Y. 1-1227
Bell
England Gas & Elec.
5Vi%
J:
cussing today what the year now
MacMillen Co.
Common
j
It
Taggart Corporation
Preferred
-K
"Traded
on
December
of
Preferred
.
1941, when
decent
the
N. Y. Curb Exchange
traditions
Vanderhoef & Robinson
Members
where
this
and
country
plunged* /into
chaos
the
W. L.
Preferred
&
Common
6s,
1952
stood
the days that
of
an
address
before
delivered
Batt
L.
before
■
in
you
Combined
Production
and
York 5
Telephone: WHitehall 3-1223
y'-sJ-j
(Continued
followed and looked
"The manpower problem,
NY 1-184?
Teletype
on
page
179
Moxie,
Engineering
Com. & Pfd.
•
although paramount today, is nearing
inc.
Time
United Artists Theater
United Piece Dye
York
Wks., Pfd.
Corp.
SremeandCompcmu
Members
37 Wall
Bell
N.
Y. Security Dealers Assn.
St., N. Y. 5
Teletypes—NY
Hanover 2-4850
1-1126
&
1127
tinuing, he added: "Without attempting to
war
will
such
Maritime
States
end, I
Gas
cancellations,
almost,
apd
FASHION PARK,
FASHION
FASHION
Electric
that
to
it very important
makes
sound
action
be
taken
now
provide for increased produc¬
tion
of
civilian
(Continued
Inc.
PARK, Inc.
I
V.
R
Whitehall 4-4970
Teletype NY 1-603
.
.
r
La., members of the New Orleans
Stock Exchange, have issued a
detailed? review, of New Orleans
Ba'nk Stocks for 1943. discussing,
believes
firm
5'
2-9470
long-term investment' and growth
in value.
Copies, of this interest¬
ing review may be obtained from'
1932;;^-^
Chicago Rock Is. & Pacific
4S, 1934
BUCKLEY BROTHERS
Members,New York Stock
63 Wall Street, New
Exchange:.
York 5, N. Y.
/
WHitehall 3-7253
for
attractive
- HAnover
Seaboard Air Line 6s, 1945
'issues, which the
are
'
Seaboard Air Line 5s, 1931 •
the current situation and the out¬
these
NEW YORK
WALL' ST.
5s,
Woolfolk, Huggins & Shober,
j.Gravier. Street, New Orleans,
for
York Curb Exchange
New Orleans Gt. Northern
839
Direct Wires to Philadelphia & losAngeles
.
The
stock
common
new
WE MAKE BIDS
ON BONDS WITH
of
on
The
articles.;
page
189)
W. P. Hoffman Co. Admits
Frederick
M.
became
a
OR
C. E. de Willers & Co.
Members New York Security Dealers Assn.
5, N.Y.
120 Broadway, N. Y.
Teletype NY 1-2361
REctor 2-7634
City, members of the New York
Jan. 1.
:v;
Curb Exchange^ on
.<!
iI$t'i4
i
-'
'
1 ,'
;
New York Water Service
Preferred '
•
PITTSBURGH
•
RAILWAYS COMPANY
Estimated net earnings
Scranton
& "B" Common
PARK, Inc.
Jost
partner in Wm. P. Hoffman & Co.,
120 Greenwich Street, New York
Convertible Preferred
Spring Brook
Water Service
tor 1943—after taxes
Present cash and
Preferred
•
Bonds
....
equivalent
.
.
.d3,000,000
Selling under
50%
Preferred
Simons, Liaburn & Co.
Members New York Stock Exchange
25 Broad
HAnoveT
St., New York 4, N. Y.
2-0600
Tele.
NY 1-210
berwaId
Troster,Currie& Summers
Members
70 PINE ST.. N
Commission,
'
New Orleans Bank Stocks
look
New
Teletype NY 1-1140
4
Moxie Go.
1963
Bought—Sold—Quoted
G.A.Saxion&Co., Inc.
I
,
New -York Curb Exchange
Members
64
Annual Review Of
prophesy the time when
Higher Civilian Output
"This
Common
Associated
'
can
daily during the coming year, you
will see newspaper notices of con¬
tract cancellations, of plant shut¬
downs, of elimination of grave¬
yard shifts, and of reduction- in
employees.
Although the man-
Deb. 5s,
in on
Washington, D. C.
■
Associated
,
Frank C. Masterson & Co.
Meter
Equitable
tell you'*
Minneapolis &
St.
Louis RR.
that the production of war mate¬ power problem will continue as a offers interesting- possibilities, ac¬
riel in some items has been so serious one for the nation as a cording to a circular being dis¬
many
communities ; will tributed by Adams & Peck, 63
great that about $6,000,000,000 of whole,
Army contracts and about $2,000,- find that in their area they have a Wall; Street,
New York City.
000,000 of Navy contracts have manpower surplus. In some com¬ Copies of this circular may be
had to be cancelled.
munities, there will even be a obtained from Adams .& Peck
serious unemployment problem.
upon request.
/■:
'f:N"This is only the* beginning of
the
Com. & Warrants
Rockwell
peak," said the Honorable Harry S. Truman, Senator from Mis¬
Woolfolk, Huggins & Shober. : " i
souri, Chairman of Special Senate Committee to Investigate the
National Defense program, speaking before the Victory and Post¬
war Conference of the National Retail Dry Goods Association. Con¬
Interesting RR. Situation;
its
Aetna Standard
W. F.
the -Pittsburgh
Resources
Board.'
Manpower ProWem lfearinglllll
Peak; Senator Truman
H. G. BRUNS & CO.
20 Pine Street, New
"Dealt
Col.
.
Common—-Pfd.—Bonds
"v Bell
with
Association of Commerce in
Chicago,
earlier', this
month.
Mr,
Batt
is Vice-Chairman of
the War Production
Boar'd.>'and: ,United
States
Member and
Representative on
the Combined Raw Materials Board and
speaker.■>:;.-I\.'-.v':,
have
s,
Harriman Bldg. 6s, 1951
',"; •
Preferred
Struthers Wells
;
a
could
Queensboro G. & E.
6%
W.
conclusion
that
,
5l/i
Sherman,
Hotel.
yet I
venture
the
Indiana Limestone
;
definiteness.
some
'the. Chicago
And
Douglas Shoe
with
*lHext
of
war..
Common
1
'
preparation and with Co. and Chairman of the Board of
too little time, there could be no the Standard Steel Spring Co. of
doubt of the job before us then. Pittsburgh, Pa.; Chairman of the
The utmost of our resources—all Board of the Timken-Detroit Axle
the skill of our industry and the Co. of Detroit, Mich., and Director
Production, - of
the - United
labors of ; our people—would be- of
unexpectedly
Byrndun Corporation
•
Amer.-La France-Foamite
with
12 months-to come
inadequate
were
violated
Telephone COrtlandt 7-4070
Bell System Teletype NY 1-1548
.
Facing two great enemies,
peo-
pies* every¬
New York 5
Nassau Street
31
civilized
Curb Exchange
York
New
cast
f
o
i:
,
day
in
the
certainty than .'I can to¬
day.
For then, the pattern of
some part of the future was clear¬
ly fixed, The United States was
in a war, and the shape of the de¬
mands of that war could be fore-^
that
shocking
Common & Prefer reds
V
greater
time
a
since
United Cigar Whelan
into
so
seems
short
;
Il*«
\
5 Vz%: Debentures
&
*5%
<&-
to come
year
»
■
74
N.
Y.
Security Dealers
Ass'n
Successors
Robert
Trinity Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
;
Private Wires to Buffalo - Cleveland
'Detroit - Pittsburgh - St. Louis
C.
Special
L'etter available on interesting.
& CO.
to
Mayer &
Co., Inc.
..late developments.
T. J. FEIBLEIMN & CO.
Members
30 Pine St.,
.
■'
Member
N.Y., DIgby 4-7900
Bell Teletype NY 1-1790
New
York
Security
I
Dealers
Ass'n
New
Orleans Stock Exchange
41 Broad Street
BOwling Green 9-4433
New York 4
Tele. NY 1-493
.Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4246
163
The COMMERCIAL and
CITY OF
FINANCIAL
CHRONICLE
PRUDENCE
'
Reg.' U. S. Patent Office
William
B. Dana Company
>.'•< publishers ■:;
.
25
'
'
/
.
Herbert D. Seibert,
REFUNDING BRIDGE
.
William
Dana
Seibert,
ALL ISSUES
D.. Riggs,
Business
13,
Published twice
a
every
Manager
Offices:
Newburger, Loeb & Co.
week
'p:'
j;-::
135
S.
La
Smith." ;■//;' :/v:;
Copyright
by
1943
Reentered
as
Sold
passes
p/'
But
Quoted
—-
40 Wall
New
York
fellow
YAliXALL & CO
Stock Exchange
New York Phone
"
WHiteball4-6330
St., N.Y. 5
Bell
Teletype
1C28
REctor 2-0790
WALNUT
STREET
own
bottle
stock
a
for
a
that
dividend.
thoughts go out to the
whose
stock
has
laid
an
Obsolete Securities Dept.
Philadelphia Phone
PHILADELPHIA 2
99 Wall Street, New York
Pennypacker 0300
Telephone:
WHitehall 4-6551
NY 1-2033
;
William
B,
Dana
Palmer Joins
R«
Salle
Staff Of
TITLE COMPANY
Reynolds Co.
Company
that
nounce
second-class matter Feb¬
now
25. 1942, at the post office at New
York, N, Y„ under the Act of March
3, 1879.
./
Roger S. Palmer is
with them.
Mr.
associated
Palmer in the past conducted
,
own"
and
York
Subscriptions in United States and
Possessions, $26.00 per year; in Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain, Mexico, and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
his
investment business in New
with
was
& Co.
Safford
and
Granbery,
Estabrook. &
CERTIFICATES
Present And Post-War Problems
Reynolds & Co., 120 Broadway,
New York City, members of i the
;/*/; //-.V: New York Stock Exchange, an¬
;
ruary
BOUGHT
Assails Idea Of Government As Doctor
Complete
And People As Patients
^
SOLD
-
-
Statistical
QUOTED
Information
•
Asserting that "the full functioning of the democratic process de¬
pends upon. individual responsibility," Wendell Willkie urged on
Jan. 8 that "clearer thinking" be applied to the present problems of
our home front and that "more imagination and understanding" be
given to the transference of the nation's economy from war to peace¬
time'conditions?1
J. GOLDWATER & CO.
,
Victory
Bank and Quotation Record—Mth. $20 yr.
Monthly Earnings Record—-Mth,. .$20 yr.
To Meet Ib
cast from New
39
York
ful Government
A meeting of the National Com¬
mittee of the National Security
Broadway
New York 6, N. Y.
HAnover 2-8970
Teletype NY 1-1203
"no doc¬
tor even with the palliatives and
drugs of an all-wise, all-power¬
State & Municipal Compendium—
INC.
Members New York Security Dealers Assn.
py/-'
.
Speaking/On#
the
Ope r a doctnne,'' which should be repu¬
NSTA Nal'l Committee
radio
Other Publications
*
;<v
/ ,Semi-Annual ......v....$35yr.
NOTE—On account of the fluctuations;
\
tn the rate of exchange, remittances for
foreign subscriptions and advertisements
must
be
made in New
York
Chicago
Association
Traders
February 8th, at 2:30 p.
funds,.
broad¬
Mr.
City,
WillkiC
these
Tuesday,
diated completely, since
can
from
save us
lems will
follows,
be
.m.v;:PVp
initi¬
"It is
:
ent
and
these
energy
the sense
individual
of
responsibility.
He
criticized
P
re
R
oo se
according
a
of
.
v
Word
came
to us that both the Bond Club of Philadel¬
standards
John
called
Beauty,' which are indestructible,
Keats
phia and the Investment Traders Association of Philadelphia
polled their members on the NASD's 5% mark-up rule and
found little sentiment against it.
We could hardly believe our ears when we heard this
because
our own
field
men
had covered
more
'Truth
of the. country and found so few dealers, large
or small, who were not
opposed to it that you could count
them on your fingers,
p
Besides this, probably because of the proximity of Phila¬
delphia to New York City, the Editor of the "Chronicle" has
had more telephone and personal calls from dealers in Phila¬
delphia expressing their opposition to the rule than from any
other city.
Consequently, we decided to make our own survey in
that city and to check only, with the larger dealer firms.
;• Forty were approached and all but three made it clear in no
uncertain terms that they opposed the rule. Two large firms
; that we knew favored the rule were just not asked for their
opinion on the subject. We concluded from this that if our
.survey had included the smaller firms, too, the maximum
number of dealers in the whole City of Philadelphia' that
■
;
(Continued
on
page
186)
Gov eirnment
as
doctor
a
and
the
'
'
and
A Step In The Right Direction
fA Preview Of Radio
Looks for Radio Apparatus That
of Airplanes, Skips and Trains.
Sets
to
Television
but
Believes
pp
The Albany, N. Y., area Business Conduct Committee of the
National Association of Securities Dealers, Inc., has given careful
consideration both to the letter addressed to "Officers, Partners
charges of exceeding a proper spread or profit on transactions.
The committee wishes to go on record that in all cases
brought to its attention it will maintain a strictly Judicial attitude,
examining each case which may come before it on its own merits,
with special attention to the services rendered
by the dealer to
his clients, and the circumstances collateral to the
and
Receiving
$300
as
are
things even more
>,
rapidly.r^/:^;'//>C;//.j^//#/'/:/ /P;yy'• p/Pp-;-
New instruments and new
ices
are
in
are
creative beehives of
life-lines.
to
all
To reconvert
peacetime
i /
sen/-#?
the
not be without a
future.
The post¬
industry must
for
chart
the
will
bring many chal¬
and
problems
to
test
American leadership and_ enter¬
war
era
lenges
Few industries compared
greater opportunity
prise.
to radio hold
the solution of problems
for
re¬
lating to industrial progress
pursuits employment
or
and
the maintenance
will present a great challenge to
radio industry, It will be a
of the American standard of liv¬
most
to
the
promising field for post-war
employment and opportunity.
When
the
war
ends
American
Industry must be
ing.
reconvert as
ble from
war
quickly
prepared
as
possi¬
to peace, yet with¬
out the
slightest neglect or relax(Continued on page 189)
Coca-Cola Bottling Co. of N. Y.
Panama Coca-Cola
Bottling
White Rock
SecWuUei
1st
7% Preferred
Red Rock
particular
Attention will also be given to the degree of skill
required
in consummating the sale, involving the
knowledge of markets,
have been done in preparation
lor the transaction.
reason
why
Wyeth&Co.
'Since 1893*
NEW YORK
our
based on the spread or profit, we
judicial determinatioii should be limited
LOS ANGELES
Bottlers, Inc.
on
page
186)
Hon Rose s trsster
Established 1914
Members N. Y, Security Dealers Assn.
74
cases
(Continued
y'/' REctor ■ 2-52887 -■
System Teletype, N. Y. 1-2480
Stromberg-Carlson
Gisholt Machine Co.
Bartgis Brothers
Federal Screw Works
those of
classified as military secrets. It violates no secret, how¬
ever, to report that outstanding advances have been made in the
use
of radio sound and sight.
Nothing in radio is ever new for
long, even in peacetime. War, however, changes the'old order of
1941-42,
transaction under examination.
no
Assn.
.y'v-
P Scientifically, the outstanding developments of 1943,
and Proprietors" dated October 25th, 1943, and the Tetter of ex¬
planation dated November 9th, which apparently is for the use
of Business Conduct Committees in reviewing cases based on
see
Dealers
President Radio Corporation of America
y
them
Following is text of a resolution dated Dec. 17, 1943, passed by
the Albany, N. Y., Area Business Conduct Committee of the NASD:
In the disposition of
Security
Broadway, New York, N. Y.
Bell
Air Will Be Transformed
$200
■^ ■ y
By DAVID SARNOFF
Coming.vy
waves are
which may
York
TRAPING MARKETS
Will Prevent Collisions
Warns Not to Expect When War Ends That
Overnight
activity;' our manufacturing plants
are
arsenals; our communication
Should Follow Suit
and research work
Members
New
Ill
Official of Radio Corporation of America Sees Pocket
Size Receiving and Sending Stations a Possibility. Also
oratories
Other NASD Business Conduct Committees
112
/
"Moreover, these standards are
(Continued on page 186)
people as patients as an "insidious
J.F.Reilly&Co.
which ill the long run, we
steer our course.
can
American
offing for peace.
The wartime pace that science is
called upon to maintain is breath¬
taking.
Nevertheless,
American
radio keeps up with it. Our lab¬
More Dealer Comments On NASD Rule
DEALER NO
and by
than 100 cities
in all parts
-
Wendell Willkie
the
Corp.
what
of
standards
velt's
to
ence
York
that, within the evil nature of our
times, there exist certain absolute
refer¬
sident
Moxie Co.
program
days
*
recent
Botany Worsted
satisfaction to be pres¬
such as this, in
destruction and
This program reminds us
a
on
strife.
New
the
to
Alegre
Vertientes-Camaguey
York "Herald Tribune" of Jan. 9:
only
solved by
ative,
-
Punta
the
responsibility that is right¬
that fully ours as individual citizens."
The text of Mr. Willkie's speech
prob¬
warned
will be held
at the Palmer House on
Rally
our own
,
a
our
to
Monday
St.,
Chicago 3, 111. (Telephone: State 0613),
Sn
charge .of Fred H. Gray, Western
Representative;
1
Drapers'
Gardens,
London, E. C., England, c/o Edwards &
!
Due August 1, 1968
nice
egg. We bid high for THAT Junk.
(complete statistical issue—market quo¬
tation
records,
corporation,
banking,
clearings, state and city news, etc.)
Other
'
Bought
(general hews and advertising issue)
.
BONDS
It's
1944
Thursday
and every
WHISKEY
Bought-—-Sold—Quoted
Members
■
2.70% BONDS
1, 1973
TURNPIKE REVENUE 3%% BONDS
'■.
President
Thursday, January
Due August
COMMONWEALTH OF PENNSYLVANIA
,"V
Editor and Publisher
William
1975/65
1,
DELAWARE RIVER JOINT COMMISSION
PRUDENCE COMPANY
V
•
PHILADELPHIA BONDS
1, 1975/62 and Jan.
,
Spruce Street, New York 8
V
Jan.
CORPORATION
BEekman- 3-3341
,,
BONDS
-
■
Members Los Angeles Stock Exchange
Trinity Place, New York 6, N. Y.
Telephone:
Teletype;
BOwling Green 9-7400
NY 1-375
,
170 Broadway
;
COrtlandt 7-6190
Bell System Teletype NY 1-84
I
I
'
Thursday/January 13, 1944
164
We
are
Delaware Power &
interested in:
1st S. F.
Deefield Packing
Corp.
due 1948
5
due
Bought
due 1951
Interstate Bakeries Corp,
1st Ref.
5
due 1958
Miller and Hart, Inc.
Deb.
6
due 1950
;
Note
We
ggg'g/
When Issued g,VV,g
ggg. YggJ,\:g'g
Please
Northwestern Steel & Wire Co.
1st
1st S. F.
6
1st W. S.
4
due
Deb.
6
Sold
-
Ypur Records
A
Specialty
That
of
Ygg'gg:
Tiffany & Co.
Quoted
Goodbody & Co.
A
f r, Members N. Y. Stock Exchange and, Other Principal Exchanges
51/% due 1945
Roberts & Oake, Inc.
-
in
Make
Dealing in
1954
Conv. Deb. 5
Seybold Potter Company
Harris
due 1955
4^
1st S. F.
Assented
Carrier Corp.,
3-6
Conv. Deb.
American Furniture Mart
Light Co.
COMMON STOCK
due 1950
{ •
Southern United Ice Co.
:
United Printers & Publishers Inc.
115 BROADWAY
due 1954
NY
f
;
Ufhot
if lidI
..»/
.>-1
xj
'
:.r.
foreshadowed
the- momentous events ahead?
.
;
be called upopt
to maintain peak production even asbth©
war proceeds to its
final stages?
'
4(.t►
W YEAR of 'DECISION fg:
views
questions and re¬
these timely
discusses
"
Copy
'"'r'
,
Security Dealers
Ass'n
that
great shock of
a
artificial devices of
Through Wire Service NEW YORK-CHICAGO-ST.
and
us,
day.
to
announce
now
the
war
are
;
parts
and
be likened roughly
climbing a long hill,
may
that
to
without
undue
ago
years
of
reaching
and
the. other
the
crest,
we
excitement;
YORK
'
6
Telephone BArclay 7-0700
Bell
System
Teletype NY 1-1493
r
Amerkan
Cyanaraid, PE /
greatly
moving
down
In ascent and descent alike
Eastern
four
con¬
were
Lai
•
cerned about
We
a
debt of 50 billions.
much in a year or
two as the country spent in its
whole history before the war, and
are
hardly aware of the fact.
spend
we
more
ours.
look
whose
nations
abroad
affairs
disrupted by the
Lacking
our
we
are
■
war
they
our
Sugar Associates, Com.
Portland Cement
re :ce
Minneapolis & St. Louis Ry.
as
Penn. Bankshares & Sec. Pfd.
Universal Match
see
even
than
resources,
able neither to match
production norJto main¬
a
reasonable
the road is of varied character, tain
output
of
sometimes steep and precipitous, civilian
goods. • Much
of their
sometimes smooth and of gentle capital is being
destroyed sys¬
while
living / con¬
grade.. - Many of us have had a tematically
rough, bruising time of it during ditions gradually deteriorate, in
certain stages of the climb; we ;
(Continued on page 187)
v
also will experience,heavy going,
:
;
must
we
somewhat fallacious.
periods
side.
pleased to
that
believe
slowly
are
war
ourselves for this event¬
This concept seems to
be
finally
We
NEW
suddenly will unfold be-^
era
periods
LOUIS-KANSAS CITY
Broadwa y
1 IS
.
kind will be felt at this time, that .the
economy will vanish overnight, that a
some
our
post¬
of a conr
tinuous whole, and that the proc¬
ess
' of
moving
through
these And if
-
1920
separated in some precipitous fashion from the war years themselves;
We expect to awaken some morning, find that the war is over, and
discover that we are in a new economic world.
Many of us assume
I
CHICAGO 4
Harrison 2075
Teletype CG 129
.
By JAMES L. PALMER
Ijjv>* We are prone to discuss the post-war period as though it were
war
Board of Trade Bldg.
Broadway
DIgby 4-8640
Teletype NY 1-832, 834
v
Established
First Vice-President, Marshall Field & Company
,
me
0
NEW YORK 4
.
.
York
New
v.
„
,n
prepare
STRAUSS BROS.
Members
Inc.
Members New York Security Dealers Assn.
-
ful
32
,
Prospects In Relailingl
Trade.
fore
request
on
1-672
Monopolistic Practices In/.Industry* Labor and Agricul¬
and Stimulate Foreign
new
specific securities;
.
NY
ture, Overhaul Our Tax System
WHAT companies should
current BULLETIN—
TELETYPE
Keep 55 Million People Employed We Must Abandon
Philosophy of Scarcity So Prevalent In Thinking of '30s,
Concentrate Our Efforts On Low Prices, Abandon
Pattern of our economy is
Our
CHICAGO
To
.i
Minneapolis
Milwaukee
Boston
New York
Chicago
■"
T
Post'Waf
ST.
105 WEST ADAMS
.
TELEPHONE BARCLAY 7-0100
1950
Incorporated
Y-.:---';.:;. \V
•
NEW YORK
are
war
Frederic H. Hatch & Co.
'
'/'J-
Incorporated
Bell
-
New York 5, N. Y.
Street
63 Wall
Teletype
NY
1-897
,
V
v
the association of
Vg-
;
-g: -/:gg:''g'g
times
at
FRANKLIN O. LOVELAND, JR.
MR.
towards
move
we
as
peace-time
a
down
economy.
We
with
our
probably are now somewhere
near the crest of the hill; indeed,
firm
we
be slightly beyond it.
longer than most of
may
will
be
It
us
NSTA
Group To Study
Pest-War Problems
i
g, With
a
reach the bottom
we
.
FIELD, RICHARDS & CO.
1,
Jan.
194-1.
•
■'
Cleveland, 0.
■■
the climb.
started
It is almost impossible to grasp
g ' '
'.Y/gY.gg,;i
aY;.
extent to which this war has
the
Abolition Gf
Special Rates For Transportation
Of Army And Navy Property By Railroads Sought
Congress
at
and
two
the
since
have
revision
last
its
oc¬
22
years ago.
of
litigation between the govern-?
maintained in the interest of car¬
ment and the railroads over these
riers, The ICC presently does not
Broaden
that all
the
the
carriers
ICC,
requirement
file reports with
to include
associations
last
of
movement
war
mate¬
rials, the ICC is asking complete
abolition of special government
rates.
the
cations for
begun
Presenting
in
a
specific legislative
with
connection
million
1.
Amend
so
that
their
the
state
Standard
and
local
arbitrarily cannot
own
time
Time
gov¬
name
zones.
of
War in¬
into being
that of our
peace-time
economy
in
recent years.
While the
have
jurisdic¬
6. Extend the Elkins act—which
prohibits rebates and special rates
apply to motor and
Completely rewrite the Fed¬
—to make it
eral
Transportation of Explosives
water
act
"in
that the
the
light
of
important
165
sprung
whole
certain
production
of
consumers'
stopped
,
carriers.
The
act, now
ICC
cited
applying only
v
Broadway, New York
important
certain
♦An
Club
address
of
Chicago
made
on
H. Y.
been
has
goods
completely,
the
before
the
Bond
Jan. 6.
The New York Security Dealers
include Wm. Perry Brown,
man,
Farrell,
railroads and freight forward¬
New¬
Brown>|^||9r»^eW; Orleans,
Association
Walter
to
den &
H.
W.
Pre^idehtf Arthur E.
M.
Byllesbw,&
Co.;
motor and Angeles; Joseph W. Sener, Mackuw?W t^ansDortation, as well as bin, Legg & Co., Baltimore; B. W.
railroads.
The ICC
now
has these
under the
Second War Powers act, but the^
expire Dec. 31, 1944.
temporarily
Pizzini, B. W, Pizzini & Co., New
York, and Thomas Graham, Bank¬
ers
Bond
Association announces that it will
hold its annual' dinner on
Thurs¬
day, Feb. 17, in the Grand Ball¬
room of the Waldorf-Astoria. ■
Cruttendbnj Chitten¬
Co., and Edward H. Welch,
for dealing with devices to defeat
powers
SesuriSy iealers
To Hold &mm\ Dinner
Willis MrSummers
emergency powers over
ICC
street,
2.
;>'
worked prior to it.
ever
steam railroad system.
tion
for Investors '
IllC.
L
ers,
from
.
:
'•
Facilities
worry
suburban and inferurban, electric
railways
unless
they operate as part of a general
report to Congress, the ICC asked
Exclude
,
•
HODSON & COMPANY,
has provided effective means Sincere & Co., Chicago; Henry J.
Arnold, Clair S. Hall & Co., Cin¬
published rates and gain conces¬ cinnati; Edward D. Jones, Edward
D. Jones & Co., St. Louis; Thomas
sions of discriminations.
A. Akin, Akin-Lambert Co., Los
7.
Give to the ICC permanent
5.
ernments
operation
properties.
its
for legislation to:
or
.
Experience
»
war for 10
people than
after the
more
to
changes/ in stock own¬
merger
Knowledge
STOCKS
whose output exceeds
whether
public hearings
should be held on railroad appli¬
ership,
program
act
ICC
INVESTMENT
Our
war.
produc¬
extending far into the post¬ have access to the records of the
tion
of
civilian
goods
on
the
war period.
i Assn. of American Railroads, the
While the
1940 modifications American Trucking Assn. or sim¬ whole has approximated normal
levels.
We face a national debt
appeared satisfactory at the time, ilar organizations.
of two or three hundred billions
he said, in view of the tremendous
4.
Leave to the discretion of
rates
current
BONDS
INDUSTRIAL
&
of the labor market
have
jobs
15
or
dustries
vices, the following was also re¬
ported:'.,.'ggg'g
An ICC spokesman explained
that there is a strong possibility
3.
corner
we
about
militaryf
v>gg- •g-'gg; gg1 developments"' which
curred
MUNICIPAL,
RAILROAD, PUBLIC UTILITY
on
eliminated for all except
In United Press Washington ad¬
GOVERNMENT,
the level
three times
in
reached
government traffic was transported by rail at rates lower than those
charged to others.
In 1940. however, the special concessions were until
>
NEWARK:
7^4 Broad St.
Currie & Summers,- New
modified our economy.
Its shock York,
as
Chairman.
Members
has
surpassed
anything
which comprise past Presidents of the
anyone conceived prior to Pearl organization and present officers
Harbor.
We are producing goods
remote
,
BOSTON:
Foster,
-
traffic,.
'
Street, New York
201 Devonshire St..
post-war
problems
committee
headed
by Willis M.. Summers,
Jan. 10 national income has far surpassed
to abolish special rates for,.transportation of army and navy property any previous war-time or peace¬
time
figure.
Employment re¬
by railroads.
' g-,.y.
gvygy
g
g-:"'g.g
have
tapped
every
Under the old land-grant acts, the United Press explained, all quirements
The Interstate Commerce: Commission asked
'
Members New York Stock Exchange
68 William
view toward beginning a
study of various posUwar prob¬
of the grade—and when we get lems affecting the securities field,
there we will find we're not at the
National
Security." Traders
the same place we were when we Association has organized a special
think before
Cincinnati, 0.
R. W. PRESSPRICH 8i CO.
,
Co., Louisville.
Situations Attractive
The first mortgage
6s of 1948 of
Empire Sheet & Tin Plate Co.,
and Quaker City Cold Storage 5s
offer attractive possibilities aq,
cording
to
a
memorandum
pre¬
pared by Hill, Thompson & Co.,
Inc., 120 Broadway, New York
City.
Copies of this interesting
memorandum may be had upon
request.
Volume 159
COMMERCIAL &. FINANCIAL CHRONICLE
THE
Number 4246
165
Rock Island's
United
' *
■
,
Chicago & North Western
St. Paul's
Air Lines, Inc.
CANADIAN
New Capitalization Reduction Possibilities
v
Circular
.
on
written
request
Paper Bonds & Stocks
Frisco's
V
■
v
SECURITIES
Seaboard's
41/2% Cumulative
>
Preferred Stock
ABITIBI
Bought—Sold
V:-:,-
Arden Farms
Members
Company
—,
Quoted
Bell
:
*Prospectus
on
and
Exchange
N. Y.
?
'
.
231
been
ago,
as
than
in
the
inau¬
was
three
years
which, it is believed, sets
record for longevity
when-issued
izatiW '
Exchange.
windfall
in
established
welcome
profits
will
to
an
contracts. Cash real-,
on
-
years ago
In his accept
also disclosed
on. Jan. 6 tnat, as a result of con¬
tinuing talks between American
and British monetary experts, the
securities
more
of, 1944.
trading
all-time
the
of
come as a
the
securities,' but unfortunately
the
incoming
will be subject to considerably
P res id e n t
ri.y -P
higher income tax rate? than con¬
stressed
the
Frank M- Dwyer
differences between the respective
templated when the profits were
fact'" that .the
V;U;
plans for post-war international Sari
;
•
Francisco
Stock
Exchange originally established.
currency stabilization have
been
In
view of the developments
was
ready to and is serving the
lessened to a great extent and the
rapidly
developing - industrial subsequent to formulation of the
two countries are closer to agree¬
reorganization plan, particular in¬
west.
■■v-'
tance
speech
early traders
in
new:
-
•
before.
ported..:
;•
following ; was
the
advices,
re¬
Heretofore, gold's part in
currency stabilization has been the
principal point of divergence, with
the American proposal calling fof
plans.
$8,000,000,000
fund
of
Raggio
John
of
Raggio
Greenwood,
Mejia, Davies
& Co.; G. W., Miller, Dean Witter
& Co,; and V. C.: Walston, Walston, Hoffman & Goodwin. These
&
between the British and American
an
firm
the
Morgenthau declined
to
discuss specific
points at issue
Mr.
elected f were:
members
Vice-President
?*'/,'^
governing
and
officers
Other
Board
Co.;
three
will
R.
Arthur
new
members of the Board
with
continuing
members: Paul A. Pflueger, Max
definitely
serve
two
Koshlarid
&
Co., and Rudolph
C.
Jacobsen
of
Robert
&
Co^W/'/ivf:
I.
pegged to gold and the British
suggesting a clearing union with¬
out a definite gold; commitment.
The conference,; in addition to
discussing monetary stabilization
as
a
means
to- unhindered post¬
war trade,
also would consider a
tentative Treasury proposal for a
C.
Bolton
♦
$10,000,000,000 world bank for
construction and development.
w,
.
.
■P.
,
Broad Street Sales
65
current
situation
of
certain
the
a
of their corporation.
Broad Street Sales Corporation
in Pitts¬
is
underlying
York
distributor of Broad
Investing Corporation and
Investors Corporation.
general
Street
&
41
Co.,
City.
Broad
Post-War
St., New
dealers
only,
•request
from
be
may
had
interesting
post-war : ap¬
praisal of the St. Louis-San Fran¬
cisco railroad bonds has been pre¬
pared
upon
State
T. J. Feibleman &
this
'A.I
I
,
Appraisal
An
Copies of this inter¬
upon
by
HAnover
2-0980
NY 1-395
Montreal
Toronto
.-..'MINNEAPOLIS &
is to be used it
that
seems
for
is payment
the RFC loan
immediately
located to that agency. \
of
the
in
a
diately
small
after
actual
consumma¬
of' the
Commission
to reconsider the plan, and
the in¬
and
interest
amounts
New York
was
of
fixed
now
RECENT DEVELOPMENTS
in respect to
at
Union
SEABOARD AIR LINE
Pacific
RAILWAY
Central securities
The bal¬
ance
000,000
road
utilize
to
of
amount
the
any
war
cash.While
other roads have been able to
open
re¬
proceedings in order to dis¬
tribute
cash
in
available upon request
is to be settled in new
substantial North Western securities with a
impossible for the
settlement
of
Raymond
&
Co.,
148
St., Boston, Mass. .Copies of
discussion may be obtained
request'from Raymond & Co.
COMPANY
REORGANIZATION
of the claim of less than $23,-
flexible effective date of the planit
Y,
Copies of circular describing
allocated
was
pledged under its loan.
have
made
New York 5, N.
Teletype NY 1-897
':
:
excess of $49,000,000,
$25,000,000 is to be met
new
note maturing in 1954
The RFC also
Failure
Street
Bell
slightly in
with
tion.
:
RFC
Incorporated
63 Wall
of which
4%.
status
Frederic H. Hatch & Co.
on con¬
plan, thus obvi¬
ating the necessity of issuing the
large amount of new securities al¬
claim
'
Stock
by most rail
summation of the
The
As'V- and
be
The
of at least part of
and
the
to
General Income 4s, 1996
General Income "Scrip"
likely
retirement.
debt
probability favored
men
most
large share of it will
a
used
and
attaches
"New"
reorganized property with a
large excess of cash. If this cash
prospects of the Company imme¬
terest
ST. LOUIS RAILWAY
a
total face
or
stated value of close
Tuyl & Abbe
to
$59,000,000, At present whenissued prices this block of securi¬
ties has
a
market value
of
72
senior
might prove advisable to pay this
portion of the RFC claim in cash
V
YORK ,5
than
Western
WALL STREET
NEW
more
claims, to bondholders as
an integral part of the reorganiza¬
tion, or as interest on the old
bonds, in the Chicago & North
the
case
cash
will
be
$26,000,000. As has been sug¬
gested by the court in the case of
the
New
Haven
passed along to the new company.
There has been considerable spec¬
rather
than
agency
a
of greater
as
how
to
the
new
com¬
Such
pany "will use
quarters
the cash, with some
predicting
important
new
a
first
Secured
distribute
block of
value. • '
new
6s
it
A Post-War
St, Louis, San Francisco
.securities
■
•.
,
debt
retirement
progress
others
and
divi¬
•
step would reduce the
mortgage
bonds to
be
outstanding below $48,000,000 and
the income 4%s to below $93,000,-
looking for liberal
dend policies.
n
; 000. The bank loan and underly¬
Many rail men are warning ing liens left undisturbed (aggre¬
against too optimistic expectations gate amount less than $9,500,000)
as to the use of
cash, warning that could also readily be retired,
the new management will almost leaving as fixed debt only
the
serial
equipments,
the
certainly want to keep on hand a regular
far
larger
cash
balance
than $48,000,000 of first mortgage es,
would ordinarily be deemed nec¬
1989, and the $25,000,000 of 4s,
1954, issued to the RFC.
Such a
essary for a road of, this size and
with
comparable
annual
re¬ capitalization would carry fixed
quirements,
This trend towards charges of only about $3,400,000,
or
about
$1,000,000 lower than
financial
will
be
necessity
for
conservatism
heightened
by
providing
funds
the
for
originally
ICC.
post-war ;V
Appraisal of the
the
to
,
appreciation, according to
esting study, which is available to
Co.
director
National
study prepared by T. J. Feible-
man
an-
that Woodford Matlock
has bden elected a Vice-President
and
bonds, offers attractive possibili¬
ties for
New York
Ae O
% %
"
burgh Railways System, particu¬
larly
Corporation,
Broadway, New York City,
nounce
_
Pittsburgh Rys. Look Good j
The
Bell Teletype
new manage¬
itself taking over
will find
ment
ulation
Of Broad St. Sales
re¬
WILLIAM St., N. Y. 5
52
policy, however, the
.
In Associated Press Washington
HART SMITH & CO.
on
when-issued
gurated
presi¬
-
dent
the
Mr; Morgenthau
ment than ever
an
legal action that might inter¬
physical shape prior to
the reorganization.
Jhd War boom, there has unques¬
is expected that trading in tionably been excessive wear, and
when-issued
securities
will
ear from the capacity operations
Over-the-criunter
and last
served
vice
ST. LAWRENCE
excellent
during the first quarter
change for 21
years
MACLAREN
preparing to brinf
were
>f the last few years; coupled with
the New York Stock
almost
immediately ^ shortage of materials for main¬
.with a possibility that the new tenance work.
securities may actually be issued
Even with a most conservative
ber of the Ex¬
year
MINNESOTA & ONTARIO
Exchange
12;
mem¬
a
ther
be started
President
meeting had been sent out already,
y
attorneys who
further action in the District Court of the District of Columbia in
;he
elec-
Dwyer has
but denied
to
The debtor has dismissed the
It
held
January
t'i Secretary of the Treasury Morgenthau said on Jan. 6 that he was
hopeful
that
an
international
monetary stabilization conference
invitations
LAKE ST. JOHN
Although attorneys for Chicago & North Western were appar¬
ently riot yet ready to admit defeat, the futile long drawn out litiga¬
tion surrounding,the reorganization plan has finally come to an end.
fere with
change at the
annual
MorgenlharHbpeful Of
Monetary Conference
formal
the
Francis¬
tion
that
of
President
as
Stock Ex¬
co
Chicago 4, 111.
could be held this year
HOWARD SMITH
SAN
San
New York 5, N. Y.
LaSalle St.,
So.
I
DRYDEN
1|| Railroad Securities
1-2480
NY
Teletype.
System
installed
other
leading Security and Commodity Exchs.
120 Broadway,
Teletype—NY 1-310
attempt to compeltthe ICC to reconsider the plan. At the same time
FRANCISCO, CALIF. —
Judge Barnes, who has had juris- &
Frank M. Dwyer, member of the
diction, over the proceedings, is¬ property rehabilitation.
While
firm of' Dwyer & Parrish, was
sued an order enjoining any far¬ the properties had been put in
MEMBERS
Stock
Bell
GREAT LAKES
request
,
York
DONNACONA
...V-', New York 6
:
Telephone—DIgby 4-4933
Dwyer Elected Pres. Of
S. F. Stock Exchange
New
CONSOLIDATED
Stock "Exchange
Dealers Assn.
Security
/{Ector 2-5288
.v.k-,
-
Sold
—
York
Members
York
New
Ill Broadway, New York,
Bought
New
61 Broadway
A;
J.F.Reilly&Co.
Preferred
&
Common
A
#;y.
BROWN CO.
PFLUGFELDER, BAMPTON & RUST
:
contemplated
by
the
Also,, contingent charges.
(Continued on page 174)
,
■)
*?::■;.
Discussion
sent
free
J
r.'
request
on
s
,
148 State St., Boston, Mass.
Tel.
CAP.
(1425
: :
Teletype BS 259
N. Y. Telephone HAnover 2-7914
Minneapolis &
St. Louis R. R.
New Common Stock
"Rock Island"
We maintain active trading
Reorganization :
Profit Potentialities
Circular
markets in:
on
i iA t
Circular
upon
request
SEABOARD 6s/45
SEABOARD 4s/59
I
request
SEABOARD 4s/50
SEABOARD-ALL FLORIDA 6s/35
Mclaughlin, baird & reuss
Members New York Stock Exchange
ONE
WAIL
STREET
NEW
1. h. rothchild & Co.
■
YORK
120 "broadway
TEL.
HANOVER
2-1355
,
TELETYPE NY 1-1310
<
COrtlandt 7-0136
n. y. c.
Adams & Peck
63 Wall
specialists in rails
5
5-
" Tele. NY 1-1293
Street, New York 5
BOwling Green 9-8120
Boston
Philadelphia
Tele, NY 1-724
Hartford
Developments In Several Countries $45,000,000 Firestone
Tire Preferred On fttkf.
Reviewed By National City Bank
450,000 shares of
Recent Gold
BOSTON
TRADING MARKETS
V
"Monthly Bank Letter" of the National City Bank
the following article, entitled "Gold in the
The January
BIRD & SON
,
of
interest."
This pennant
PFD.
UNITED STOCKYARDS,
shall be
Homsey Co.
BOSTON
Capitol
to
of honor
as
daily reminder
a
intensify
until
ZJfte
NEWARK
Victory is
met*
icon.
and wcmet*
Co,
ditional function
American Insurance Co.
about
^ RADIO PRODUCTS CO.
of N. Y.
Rippel & Co.
Newark 2, N. J.
MArket 3-3430
2-4383
PHILADELPHIA
maintain markets in:
We
Derby Gas & Elec. Corp.
Common
Delaware Power & Light
"
Common
Public Service of Colorado
Common
Pa.
certificates
These
100.739.
are
being reoffered at prices to yield
.85%
for the 1945 maturity to
2.20% for the 1955 maturity and
at
1956
1959
from par for the
to 99 14
for the
prices
maturity
Philadelphia 2, Pa.
Belt Teletype
;
Phila.
—
RIT 4488
N. Y. WH 3-7253
PH 265
have
a
interest
continuing
in
Southern Advance
Bag & Paper Co.
Common Stock
Co.; Newburger & Hano;
Stokes & Co. and F.V S.
&
standard
new
BOENNING &. GO.
1606 Walnut
\
.
Private Phone
COrtlandt
to
a
railroad
gauge
r:'yAY""
Named To
& Loan
Elmer
E.
secretary
Miller, president and
of
the
Des
Moines
Building-Loan and Savings As¬
sociation, Des Moines, Iowa,: has
taken office as national executive
councilman
in
the
States
United
Savings and Loan League repre¬
—
QUOTED
senting
the
of
state
Mr.
Iowa.
Miller succeeds Mr. E. M. Klapka.
who has served
the past eight
years.
i,
Bldg.
ST. LOUIS 2,
L. D. 240
excess
interesting possibilities ac¬
cording to a circular discussing
the
situation
Stearns &
York
,
issued
Bear,
by
Co., 1 Wall Street, New
Co.
SAINT LOUIS
this
City, members of the New
Exchange. Copies of
may
be
obtained
circular
upon
request from
Bear, Stearns
& Co.
System
silver
and
the Mexican
Egyptian
to
to
pieces
the
in
funds
redundant
Struble In Toledo
could
hardly
problem of post-war currency sta¬
bility,
Just how much should be
the
of
currency;
paper
.
The great expansion of
wan
rupee
outbreak of
since the
two-thirds
the
circulation,
from
.
that
she
is
likely
to
resume
position of second largest pro¬
ducer of the metal after
the
The
recogni¬
sta¬
statement
is
also
a
war.
tion of the value of currency
the bility in promoting trade,
peasant has wanted goods rather
than rupees, the purchasing power
of which has declined by almost
about
2
Lehman
and
Blodget, Inc.
;
financing, to¬
gether with other corporate funds,
Proceeds
are
this
of
to be used for the redemption'
of
454,129 shares of the company's
6%
Series
A
cumulative
pre¬
ferred
stock
at $105
and accrued
dividends, or an aggregate amount
of $48,364,738.
On Jan. 29 the
company will call the 6% stock
for redemption on March 1.
^
Arrangements will be made by
the company whereby holders of
the
6%
shares
may
surrender
them
retirement
for
cancel¬
and
lation at any time after the issu¬
ance of the
call and receive thle
full redemption price
of $105 plus
$1.50 a share in lieu of the current*
quarterly dividend. V
;i
The 414% series stock will be
redeemable
a
as
whole or in part
time on 30 days' ■
notice at $105 a share and accrued
dividends. It will have the benefit,
of a cumulative annual retirement
by
lot
at
any
fund, based on consolidated net
income, for the retirement through
purchase or redemption of 12,000
be used in settling international
shares each year, commencing in
transactions must at best await
1944, at a 'price of $102 a share
future developments.' While Rus¬
and accrued dividends.
sia has given evidence of willing¬
Giving effect to the issuance of
ness
to
cooperate
with
other
the 4V2% preferred stock and re-,
United Nations, her State control
tirement of the 6% shares, cap¬
of
currency
and foreign trade
italization
will consist of $46,-3
seems
quite clearly to rule out
000,000 of 20-year 3% debentures
adoption of anything like the con¬
due in 1961, with 450,000 shares
ventional
gold
standard.
What of
414%
preferred
stock
and
may be nearer to the reality is
1,945,896 shares of $25 par com¬
that the Soviet Union is ready to mon stock.
back up the use of gold in inter¬
India
the part
of cultivators to hold their prod¬
ucts off the market.
Always dis¬
in various parts of
of food
Co., Inc., are Blyth &
Co.,
into the statement that gold
read
son
Russia
intends
undoubtedly
F. 0. Loveland With
Field, Richards SGoYy
CINCINNATI,
OHIO—Franklih
O. Loveland Jr. has become asso-'
dated with Field,
Richards & Co.,
For the
Central Building.
Union
to
past 10 years Mr. Loveland was
corporate
bond
buyer for the
habilitation of the country, but Union Central Life Insurance Co.
whether she will receive gold in Prior thereto he was associated
return or build up large monetary with the Central Trust Co. in the
make
of her
use
gold in the re¬
stocks remains to be
In the
seen.
has naturally
aggravated his distrust of paper
currency.
V:.
other country did—her imports
of commodities as the real gain in
investment department.
trust
.7;
past Russia regarded—as perhaps
to almost 8 billions,
no
Frank H.
Kemp Joins
peak of $77.25 per ounce was foreign trade, and her exports,
whether
gold
or
commodities,
reached last May just before the
Indian Government launched a se¬ merely as the means of payment
for the imports.
vyy^yY.yy,
ries of anti-inflationary measures.
nell
members of the Detroit Stock Ex¬
The
prohibited and restric¬
placed
on
forward
dealings. The object was to reach
the ultimate saver or hoarder who
were
TOLEDO,
Struble
is
OHIO
securities business
name
from
of
—
engaging in
C.
offices
Guy
in
Guy
C.
a
.
general
un$er the firm
Struble
the
Edison
&
Co.
Bldg.
U.
S.
Our
stock,
Slock
Gold
steadily
now
and Production
declining
gold
about $800,000,000 be¬
low the peak of $22,800,000,000
cash.
For the same reached a few, weeks prior to
Pearl Harbor, reflects principally
reason, gold is being supplied in
small bars — in Egypt weighing the excess' import balance in our
would
about
low
R. 0.0'Donnell & Co.
i
DETROIT, MICH.—R. C. O'Don-'
2
as
ounces
and
in
three-eighths of
India
as
an ounce.
gold
on
the market, Indian bullion
prices declined somewhat and late
November
were
at
about
the
In
the Government was get¬
ting the equivalent of about $"36
per ounce, but at that price the
demand is reported to be smaller
cash
foreign
ments for
»:
trade.
excess
-Cash
imports
pay¬
are now
running at the rate of about $600,000,000 a year, and the bulk ap¬
parently
is
going
to
individual
Latin American countries.
turn
is
being
reflected
This in
in
&
Co.,
Penobscot
Building,
change, announce that Frank H.,
Kemp has become associated with
in
them
trading
the
department
—I—■
._—
pay
Following the official tender of
Egypt
(Special to The Financial Chronicle)
•
which
Government
followed national transactions and that she
yyy;. .y.y;- !x;yY\Y:Y'-:: is interested in maintaining the
the factors that has con¬ value of gold, if only for the rea¬
equivalent of $63 per ounce.
Teletype—SL 80
Members St. Louis Stock Exchang#
operations."
This
statement;
tributed to the disastrous, shortage
in
509 OLIVE ST.
Bell
began
Government
York Stock
4
purchasing power.
A few months ago
tions
Common stock (when delivered)
of Delaware Power & Light Co.
offers
Stik
in
have been made without
facilites, or where the.system of
approval of the Soviet Gov¬
taxation is inadequate,
sales of ernment, is significant as, to the
gold offer a means of absorbing Russian attitude on The' -general
lion were
Attractive Situation
MO.
Teletype—SL 486
of ' banking
use
and Otis &
.
a viiv.urwm.1)
Landreth
to
by
Co., Inc., and
Among others, loans on gold bul¬
Fort Dodge, Iowa,
in the post for
803
and
of the people are not
masses
accustomed
trustful
League Nat'l Council
COMMON
SOLD
the
One of
U. S. Savings
Situation
Growth Industry
—
America
Latin
parts of
Asia, where
many
has been the tendency on
7-1202
York Corporation
BOUGHT
In
conducted
be
currency, undoubtedly this
circumstance would facilitate trade
gold
suit in Cairo.
teim
PH 30
Interesting
In
•
N. Y. C.
ST. LOUIS
An
-
equipment, y d-'^'VT'
St., Philadelphia 3
Penny packer 8200
Their primary object is to
check inflation.
could
recent develop¬ countries
are a more
coin gold
attract the
country;
Yantis & Co.
y-y
y;y
and to curb speculation. y In India,
The issuance and sale of the
where
previously
a
committee
certificates, to be issued under the headed
by Professor T. E. G. Greg¬
Philadelphia plan, is subject to
ory, economic adviser to the.In¬
Interstate Commerce Commission
dian
Government, recommended
approval. The $4,155,000 certifi¬ the sale of both
gold and, silver
cates are to be issued pursuant to
as a way of inducing the farmer to
an
agreement and lease dated sell his
produce, the Government
Feb. 1, 1944, and will be issued
started to release gold to the Bom¬
to provide for not more than 80%
bay bullion market early in Octo¬
of the $5,193,750 estimated cost of
ber and a few weeks later the
mer
Walter
We
Halsey, Stuart
Co., Inc., in the offering are:
Otis & Co., Inc.; Hallgarten & Co.;
Cruttenden
&
Co.;
The
First
Cleveland
Corp.;
Dempsey-Det&
Philadelphia Stock Exchange
Members New York Stock Exchange
public
ment.
headed
firms
Inc.; Lazard Freres & Co.,
Brothers, The First Bos¬
ton Corp., Glore, Forgan & Col;
Smith, Barney & Co.; Goldman,
Sachs
&
Co.;
Merrill
Lynch,
have brought considerably more—
from $44 to $52 .per ounce.
In Pierce, Fenner & Beane; Union
Mexico
the 50 peso gold
coins Securities Corp., Hayden, Miller
& Co.; Hayden, Stone & Co.; Kid¬
command a
premium of about
10%, equivalent to about $38-39 der, Peabody & Co.; Lee Higginson
Corp. and Stone & Webster
the
Associated with
BUCKLEY BROTHERS
Members
Walnut St.,
in
me^ns
a
and
Otis & Co., Inc.
It is the largest
preferred stock issue offered pub¬
licly since 1937.
^
Among underwriters associated
with Harriman Ripley & Co., Inc.,
Equipments
maturity.
1529
as
investment
141
Stuart I G<L
Established 1891
Y. Phone—REctor
enhanced
investment
of
Tire
Firestone
Harriman Ripley &
CHICAGO, ILL
Jersey Insurance Co.
N.
has
war
the
of
Rubber
The premium is less
of protection per ounce.
against loss
of the purchasing for smaller denomination coins.
poWer of paper money.
Despite
Russian Intentions About Gold
scorn heaped by the Axis Powers
The dispatch carried, by the As¬
upon the use of gold, demand for
the metal picked up after the fall sociated Press Dec. 6 from Soviet
sources
concerning gold quotes
of.France, and prices in free mar¬
,
kets began to rise beyond the $35 from a Russian magazine as fol¬
per ounce level set by the U. S. lows:
Treasury.
Prices have differed i "As a country which partici¬
A
group
headed by Halsey, widely from market to market, pates in foreign trade the Soviet
Stuart & Co., Inc., was awarded The
bulk
of
transactions was .Union,
like
England
and the
$4,155,000 Pennsylvania Railroad probably small, and everywhere United States, is interested in the
equipment trust, series O 214% gold coins commanded additional stability of currencies in those
equipment trust certificates ma¬ premiums because of easier trans¬ countries with which it carries on
turing annually from Feb. 1, 1945, portation, handling, and disposal.
trade relations. •
'^'.Y.y;y Y:
through Feb. 1, 1959, on a bid of
"If
Soviet
trade
with
The official sales of gold to the
other
gold
18 Clinton St.,
the
by
attraction
the
issue of
Co., with a par value of
$45,000,000 was offered at par
Jan. 11 by a nation-wide group of
Economist," the gold offered in
India is apparently newly-mined
metal from South Africa, since the
medium for
a
as
new
stock
Mos-^
Russian publication
advocating use of gold curren¬
settling international transactions.
General
uncertainty
brought
(Newark)
::'
: ■'''
in,recent weeks
gold to hoarders
particular public
gold stock in the Indian Reserve
item, the" U. S. Treasury re¬ Bank remained unaffected.
Gold is bringing lower prices
port that our gold stock declined
in December to approximately the outside of the Near and Middle
$22,000,000,000 level, serves as a East. In Buenos Aires, gold bars
have : fluctuated this
reminder that gold shifts are con¬ apparently
tinually taking place, and that year between $37 and $44 per
However, gold sovereigns
gold is still performing' its tra¬ 'ounce.
of Newark
J. S.
dispatch from
a
cies in settling international pay¬
ment balances after the war.
The
production
our
A
quoted
cow
effort for our country
MASS.
Teletype BS 424
Firemen's Insurance
y
A
41/2% series cumulative preferred
third
Building
9,
4330
yY
pertaining to gold have appeared
in the daily press.
The reports of official sales of
in India and Egypt at premium prices have aroused
REMINGTON ARMS
Shawmut Bank
contains
York
,
UNITED ELASTIC CORP.
,,
New
News": ;;;
Several items
COLONIAL STORES
du Pont,
Thursday, January 13, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
166
H. Hentz To Admit
&
Hentz
H.
Co.,
60
Beaver
Street, New York- City, members
of the New York Stock Exchange
and other
admit
ited
leading Exchanges, will
Norma
R.
Lewine
to
partnership in. the firm
lim¬
as
of
January 6th.
the
phenomenal
growth
of
Latin
American
gold and foreign ex¬
overall
loss
during the past two
has been probably nearer to
$1,300,000,000 than to $800,000,000.
Most of the metal itself remains
years
change balances which increased
during the first nine months of
in this country, in the earmarked
generally
expected.
The this year, by some $700,000,000, to
stock held by the Federal Reserve
weekly sales in Bombay were put over $2,000,000,000.
If our new production and our Banks for the account of foreign
at about $1,200,000 early in No¬
- :•
vember. According to the "London imports of gold are considered, the central banks.
than
Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4246
ability of stocks
against heavy of¬
ferings; second, the steels.led
167
it showed an
Tomorrow's Markets
to
Walter
the advance.
Whyte
move
up
,
AND SELL
FIRST
f
; By WALTER WHYTE
took
Seligman, Lubetkin & Co.
Members
Title Guarantee & Trust Co.
to
On
nervousness.
is
-
N.Y7 Title &
sidies
^:v-
:
•
.Offerings
.
Companies
Industrial Office Building Reduces First Mortgage Issue
\y;-
-
sent
request
on
'V.';-;
■■
'
;
*
will
*
•
'V.
32 BROADWAY
,
Telephone: DIgby 4-6886
^
a
lot
of
who
be¬
whooping it up. Unfor¬
tunately
their : enthusiasm
.didn't carry them or the mar¬
ket very far.
For the rest of
the week was given over to
backing and filling, a process
during which most its adher¬
gan
zephyrs or cold north¬
warm
ers
remains to be
seen.
tion stands
As.the situa¬
the bears out¬
now
number the bulls.
goes on
little attention
cheerful
or
the
either the
..
*
,
action had been nullified and
prices pointed up. Folthis up, bids on cer¬
tain
stocks
raised and
were
issues recommended. Not
new
was
written the Dow average was
136.
The next day it
about
about
stake.
you a
You
As last week's article
[
hold
now
Curtiss
heed
at
Union "A" at
99
138
This
tainable, at 21-22, with
WALL; STREET
at 19.-
NEW YORK 5, X. Y.
'
•
DIgby 4-2727
Dow
lo-O
1856
H. Hentz & Co.
Members/
York
New.
York
New
York
Stock
Curb"
:
Cotton
Commodity
Chicago
New
Exchange
Exchange
Board ; of
other
.
- -
-
advice
celled.
holds
The
a
to
not
on
Ex-Cel-
buying
buy; is
advice
to
zone
can¬
any
an
retrace.;
,
•,
;
Toget back to the stocks
Exchange
'
"
Exchange* Bldg.
NEW YORK
4,
N. Y.
DETROIT
PITTSBtTRGH
GENEVA,. SWITZERLAND
$814;500
old The
principal
of
amount
bonds.
retired
bonds
is
approximately 2Vk%. of the total
amount issued in reorganization
and the discount at which they
have
been
purchased
has,
of
increased the capital sur-r
course,
plus account accordingly to where
320,000 square feet of rentable at Oct. 31/ 1943, it is shown in
the balance sheet as $980,164.19.
area, constitute the secuity for the
first mortgage fee bonds and were Earned surplus at the same date
taken upon the books of the new is shown at $104,790.55.
#
corporation at ah appraised value ; The procedure. adopted by the
as of Aug
1, 1933, as determined company seems to be the most ad¬
by the board
of directors - at vantageous, for in addition to re¬
$2,000,000 for the land and $2,500,- tiring a funded debt at a large
000 for the building, creating a discount, the liability for the 9%
sizable
capital
the
surplus
total
over
liabilities
and December 1 from net
Attractive Situation
>
v:
Chicago Traction securities, and
.issues of Chicago North Shore &
Milwaukee Railroad in
of
particular,
available
after
charges
preciation on the building
equipment.
The difference
actual
tween
interest
well
are
earnings
for de¬
secured
and
offer
conn
siderable appreciation possibilities
in future years.
^
and
be¬
payments
made and the cumulative 6%
in¬
offer
interesting possibilities ac¬ come rate of the bonds amounts
cording to? comprehensive circu-: to 40%. Cumulations are payable
lars issued by Brailsford & Co., from available net
earnings, or
208 South La Salle Street, Chi¬ in
any event at maturity or prior
cago, 111., members of the Chicigo redemption.
;;
;;
Stock Exchange. Copies of these
i
Bonds Retired
circulars may be obtained from
The
corporation has adopted
the firm upon request.
the policy of using the accrual of
depreciation fund, which could
profits only in Western Union not be used to pay interest on the
r
IN
MARKETS
TRADING
>
REAL ESTATE
.
,
SECURITIES
SHASKAN & CO.
.
I
bonds, for retirement of bonds
through open market purchases or
through requests for tender, and
suggest acceptance of
profits because after market
,
?
1943, has purchased and
Membtrs New York Stock Exchange
Membert New York Curb Exchange
PL.,N.Y.
Bell Teletype
.
since February, 1938, through Oct.
31,
y
40 EXCHANGE
DIgby 4-4*50
NY 1*953
:
re¬
reaches about 142 I believe it
will go into a dull
about 136.
True,
much of
a
decline to
that isn't
decline, but I don't
profit in holding stock
secondary move when
small profit may be gar¬
see
any
Miller Is
a
With Gohia And Torrey
:
announces
Miller
.
to
-V
;
/'
1
of
firm's
the
New
York
office, 90 Broad Street, has been,
elected
a
resident Vice-President.
William J. Murty has become as¬
sociated
trading department of Schluter &
;;
;
The Ranson-Davidson Co., Inc.,
that
Henderson
H.
Cohu & Torrey, 1
New. York
Co., Inc.
Of
Ranson-Davidson Co.
Wall Street,
City, members of New
York Stock Exchange, announce
a
nered on the; first advance that Fred C. Rugen is now as¬
sociated with them.
Mr. Rugen
and stock re-entered on dewas
formerly manager
of the
for
fice
with
the New
York
of¬
of the firm.
.
Don't look for these things
happen
-
overnight;
may not even happen.
from current tape action
they i
"SoIveitt,> Surprise?
But j In an interesting study -of the
it is situation, Vilas & Hickey, 49 Wall
Street, New York City, members
hold, my advice is; Take indicated.
■".;••• *
of the New York Stock-Exchange,
t'fi
•
■/.
;
profits in Curtiss Wright "A"
declare that 1944
may
see
the
at 18 or better; raise stop to
More next Thursday.
changing for better in the status
—Walter Whyte of Baltimore & Ohio, with the
15. Take profits Lockheed at
19 or better; raise stop to 14.
IThe views expressed in this possible restoration of the credit
of B&O. Copies of the study, con¬
Take profits American Steel article do not necessarily at any
taining opinions on the individual
time coincide vnth those of the
Founders
across
28; raise Chronicle, They are presented ai B&O issues, may be had upon re¬
quest from Vilas & Hickey.
the author only.]
stop to 23I4.
Take partial those
you
■
*
CHICAGO
tired
ac¬
^
,
•
interest
on
the
-
■
N» Y. Cotton
unpaid
,
buy
advance;
and
above
■■■■
•
Trade
Exchanges
won¬
gob(|'^hiy! if they; are
obtainable before
•
or
Inc.
Exchange,
Orleans, Cotton
And
'
Exchange ;
.
get into
then
New
be
y;
average
before Bethlehem
Established
stop
:,
is now
just under 139. I don't think
a
great big move will get un¬
der way from here. But I do
think it will... go to about ;142
or so before
turning reaction¬
ary again.
Referring to the
previous
paragraph
again;
should the 142 figure be made
Exports—Imports-—Futures
\
must
"A" at 48; stop at 42.
The
SUGAR
a
f
crued
•
at 163/4, Lock¬
16, American /Steel
Founders at 25 and Western
representing
and interest warrants and the 40% unf
the paid cumulated interest is at the
same
time
Droop—Yeah!
liquidated.
Should
They claim 5% corporation.
shoiild be tops.
policy be continued to
■
The first income interest pay¬ such, a
^
Moron—That. ought to be okeh ment made on the new bonds was Dec. 1, 1947, the maturity of the
on Government bonds.
made June 1, 1936, in the amount bond, the issue would, of course,
Droop—Don't
mention
those of $15 per $1,000 bond, the in¬ be reduced to a rather low figure
in comparison to the value of the
come from the property from the
things, brother.,
date of reorganization to late in land and building securing the re¬
Moron—Why not?
Droop—You know darn; well I 1935 being used to pay an accu¬ maining bonds.
sell 'em less nok commission. 1
mulation of real estate tax arrears f It would seem, in view of the
Moron—Why can't you handle and to provide the required work¬ circumstances, .that even at the
everything that way?
ing capital. Semi-annual interest present level around 40, at which
^roop—Are you being sarcastic payments in the same amount; the yield based on 3 % annual in¬
or applying for a job?
have since been m«de each June terest would be llk%, the-bonds
'
MorOn—That
,
derful.
Wright "A"
and a high
431/7. None of
gain, though the other .stocks ,sold low.
comparatively small, was im¬ enough to be; bought. ; But
portant for two reasons; First; should Bethlehem get down
to 5614 to 57 in the next few
days I suggest buying it, with
a stop at 55.
The same advice
LAMBORN & CO.
applies to Ex-Cell-O/ if ob¬
was
fraction.
...
Droop—I'm being SECeed and
turned around and said down NASDeed.
"
disgruntled.
sir
■
column
all the stocks advised for: pur¬
to
\
^
Moron—How come?
this
week
Last
chase got down to specific
market, meanwhile, buying levels.
Enough of
in its own way paying them, [however, did; to giv^
The
your
Droop—It's lower than it used
to be.
w
ents lost heart.
Yield, what's
income?
;
,
Anonymous Dealer
Moron—Hi!
,
bulls
new
Phillips
,
an
of the face value of each<S>~
bond,
bondgV and payable from surplus
net,earnings or at maturity of the
issue, if not sooner paid.
.
The plot of ground, about 62,000
square-feet and the eight-story
office building containing about
NASD 5% Rule
By
Pennington
change for a like amount of 6% fixed interest First Mortgage Fee
Bonds.
The new bonds also carry interest warrants in the amount
of 9%
New York 4, N. Y.
-
■
27y2% Since 1938
Streets, Newark, N. J.,- adjusted its capital structure through reor-,
ganization in 1933 at which time new First Mortgage Fee 6% Cumu¬
lative Income Bonds in the amount of $2,947,000 were given in ex¬
LANICE & CO.
A la H. I.
v
The Industrial Office Building, located at Broad and
,
'
Washington
question of price sub¬
bring inflation
talk
back, not to mention
Last week saw Wednesday taxes
and
renegotiations.
as
the strongest in a long Whether
the
Congressional
time. This action brought out winds will turn out to be
dim future either.
*
.
HAnover 2-2100
Real Estate Securities
That old
not in any
Broad Street, New York 4
Mortgage Co.
and other Title
[the contrary, its action is normdy be expected to sweep
inal'and, if indicative of any¬ around the market structure;
thing, points to higher prices,
:-i
Dealers Association
Lawyers Title & Guaranty Co.
laughingly called the job,
and the winds of
41
York Security
New
Lawyers Mortgage Co.
By the time this reaches rip the roof off the top, but
hands the President's in view of the dplefuL fore¬
speech will be water over the casts that rails were placed
"dam. So there's no point in behind the eight-ball when
discussing, or speculating on the Army took over, and that
how the market will take it. i increased
wages would cut in¬
,*1
to them heavily, their action
:
But if the majority of trad¬ was nothing to be sneered at.
ers are nervous it's
brought
about by something they ate.
Congress is back, on what
your
Seem
Incorporated
j
•
j
THe - market doesn't
1929.
Since
CERTIFICATES
True, they didn't
over.
.
MORTGAGE
ages
were making
bashful
noises the rails stepped in and
suggested at certain levels.
in
Real Estate Securities
Having gone up into the of¬
Market action does not seem fering area it was in reason
to share general apprehension. to expect the market to shy
Expect present dullness to away. This the market did.
culminate in advance. Profits But while, the industrial aver¬
share their
SPECIALISTS
WE BUY
Possibilities Interesting
The
tions
North
new
capitalization
possibilities
Western
reduc¬
in Chicago &
make
this
situa¬
tion of particular, interest at this
time
according to a circular be¬
ing distributed by Pflugfelder,
Bampton & Rust; 61 Broadway,
New York City, members of the
New York Stock Exchange. Copies
of this interesting circular may
be had from the firm upon
ten
request.
writ¬
THE
168
COMMERCIAL
QUEENS BOROUGH
..
:
.
6% Pfd.
;
Bought
Sold
—
Quoted
——
Eune, Webber, Jackson
ESTABLISHED 1879
Public
Utility Securities
Court Utility Decision
Possible Effects Of The Supreme
Court by a
The Supreme
five-to-three decision (there were sev¬
concurring opinions) recently sustained the Fed¬
Power Commission's rate order in the Hope Natural Gas case
reversed the Circuit Court of Appeals.
It had been hoped that,
decision would give a more clear-cut answer, to the valuation
eral dissenting and
eral
and
this
problem than the
Court's last previous decision, which also
involved a
natural gas distributing company.
This did not prove to
be the case
material
ues,
and
,
Net
-
labor
posts,
1944
Department Of Justice Permitted To Intervene Brooklyn Trust Co.
Operating Net
v?Q;/In SEC Proceedings Involving NASD
earnings of the
Brooklyn Trust Co., Brooklyn, N.
Y., for the year 1943, after all
Agreements Under* Anti-Trust Law
expenses, interest, and taxes, were
Permission granted on Jan. 5 to the Department of Justice to $820,524,
which
compare
with
intervene in the proceedings before the Securities and Exchange $720,639 in the year 1942;, accord¬
Commission involving the National Association of Securities Dealers, ing tb the statement presented to
Inc., and certain of the underwriters of the $38,000,000 bond issue of the stockholders at their annual
the Public Service Company of Indiana that was sold in 1938 is meeting on Jan. 10 by George V.
looked
upon as making certain what is termed as an unprecedented McLaughlin, President.
court test of underwriting agree-^
This amount, Mr. McLaughlin
ments—the
latter, it is pointed could be expected to appeal, with said, is after deducting, as expense
out, one of the keystones of the the SEC and the. NASD arrayed items, depreciation on bank build¬
securities business—to determine against it.' v.y"'
\v7. ings, depreciation and loss on sale
whether
"Wendell Berge, Assistant At¬ of other real estate, amortization
their
price-fixing fea¬
tures are in violation of the Sher¬
torney General, won the right of of bond premiums, deposit insur¬
man
Anti-Trust law.
intervention for the Department ance assessment, and unemploy¬
ment and social
Advices to this effect were con¬ of Justice."
Nyv'r
security taxes.
These items totaled $554,576
tained in a Philadelphia account
in
Jan. 5 to the New York "Times,"
1943. 7
v\:C
y7 "; 77y
Mr. McLaughlin
which went on to say:
reported that
1
the earnings were distributed as
"The
Department, which was
operating
Action To Determine Status OF Underwriting
GAS 6- ELECTRIC CO.
:
Thursday,' January. 13;
& FINANCIAL.CHRONICLE
,
United Air Lines Pfd.
known to have been looking into
the case unofficially for more than
year with
an
eye
to possible
illegal fixing of prices, came into
the proceedings affecting Public
follows:
Harriman
Ripley
&
Co.,
a
Service of Indiana at the eleventh
heads
a
group
^nc.,
that is offering to¬
day (Jan. 13) the unsubscribed
portion of an issue of 105,032
shares ($10,503,200 par value) of
United Air Lines, IncM 4 V2% cum¬
ulative preferred stock, $100 par
$394,728
$328,000
to
reserves;
the payment of divi¬
to
and
dends; $75,000 to surplus,
$22,796 to undivided profits.
The
;
of
holdings
company's
United States Government securi¬
inter - company
purchases ■and
ties were $120,377,755 at the end
the court was ap¬
hour, but still in time to be heard
It would seem almost at the oral argument now pending
of 1943, against $85,154,795 at the
parently unable to clarify fully sales, etc.
as consistent to reduce New York
its own views, though in general
before
the
Commission
and
to
beginning of the year, an increase
value, convertible prior to 1954. of
these followed anticipated "New City's vast realty values to the take an appeal should it disagree
$35,222,960.
Approximately
The public
offering consists of
Deal" lines.
46% of the trust company's hold¬
■'%'7% $24 paid by the Dutch when they with the opinion of the SEC.
^
took it over from the Indians and
27,272 shares at $100 per share,
"The
however, and
The
decision
landmark
famous
Ames in 1398, which
named f(rur or five factors to be
of Smyth vs..
"fair value",
considered ' the law of
been
until
land
doubts
recent
arose
years,
attitude
the
to
as
However,
commis¬
Supreme Court.
the
of
has
the
when
fixing
in
used
it must be admitted that
for many years
and courts
sions
which
has
been
than two years,
thus took on the possibility of es¬
tablishing, in its outcome, three
precedents, each of such, impor-;
case,
devoting it to the public hanging fire
began
use".
But the FPC
here
does not even ad¬
consistently
to
this theory,
more
not harmful.
sult"
pjility rates, continued to decline
Supreme Court has
thus abandoned reproduction cost
after
effort
the
and
year
conscien¬
protect
a
made to
was
rights of investors in utilities.
With
Deal,
the
Justice
gested
of the New
changed.
One of
coming
this
all
decisions
Brandeis'
a
new
sug¬
basis, "prudent in¬
vestment", and this idea has been
gradually developed and applied.
Prudentf investment is
as
"actual
imate
/well,- justified.
Trade'
Federal
The
regarded
legitimate>cos)t''J;ile^it-
implying
:
Commission
given the task of investigat¬
ing utility write-ups, and the FPC
was
and
ups.
tent
SEC later took
the
work
over
the
of eliminating these write-
However, they were not con¬
with correcting the bad ac¬
counting of the holding
subsidiaries,
as
company
disclosed
by
the
Federal Trade Commission inves¬
tigation. It was decided that orig¬
inal
cost
devoted
the
means
to
two
"cost.when
public
service",
commissions
held
first
and
that
this should be the basis for present
valuation,
regardless
of
all
interviewing changes in land val-
been
taken
subscription offer that expired at
3 p. m.,
Jan. 10, 1944.
United-
Air
Lines
y
ings mature within 5
either mature
in from 5 to 10 years,
years,
considers
in
5%
and
not
are
39%
callable
10% mature
callable
become
or
years,
become
or
10
20
to
callable
it
$17,000,000
worked satisfactorily—at any rate
year
having
by common stockholders under a
it eliminated tance to the financial world at
within 20 years.
;-7: '7- ;%,/V; y'/.--'77 7"7
As to the financing of war pro¬
drilling costs which large and to the over-the-counter: advisable, according to the pros¬
pectus,-. to ' provide
itself
with duction, Mr. McLaughlin's state¬
(due to Standard Oil's ultra-con¬ market in particular as to be im¬
funds with which to meet its post¬ ment said: 7
servative accounting policies) has possible of overstatement.
7'v, ;777-7'
y /
been charged many years ago to
"The case involves the right of war responsibilities and 7 oppor¬
"During the year the company
Net proceeds from the was able to make 903 loans to 86
operating expenses rather than the NASD to punish members tunities.
for in the Hope case
(particularly in the 1920s) gave
principal weight to a single item plant account. ' The majority of whoviolate the agreed offering
the Supreme Court supported the price of a security, thus bringing
in the 1898 list—cost of repro¬
Commission on this point, but one in
by the heels an issue of more
duction
(less depreciation).
In
Justice dissented. Since the Com¬ general importance than the first.
determining
what
is
generally
mission
reduced
the
rate
base In this instance, the NASD fined
known as the "rate base" — the
one-half, (as
compared about 70 of the underwriters of
amount on which a "fair return" nearly
with the company's claim based the issue
of
Public Service of
of 6% or some other percentage is
on
cost of reproduction) and re¬ Indiana for alleged failure to hold
to be earned through operation of
duced the rate of return from 8% to the agreed offering price of 102.
the rates allowed by the
regu¬
to 6V2%, allowable earnings were
"Officials of the NASD have ad¬
latory authorities—it was former¬
thus reduced about 62%, Actually, mitted candidly that unless theirr
ly the fashion to employ engi¬
little damage will result from the action were upheld by the SEC—
neers to estimate
the cost of re¬
building the property,
and to decision, since Hope's loss will if the Association were ruled
mean a gain to the affiliated com¬
powerless to punish members for
spend a considerable amount of
judicial time debating over the panies which buy gas from it. infractions oi the rules—it would
This
perhaps accounts for the follow naturally that there was no
allowance of certain intangibles,
etc.
The
system
apparently Court's feeling that the "end re¬ reason for the continued existence
tious
balance
the
was
While
the
of
the
braces
Association,
more
counter
which
em¬
than 2,000 over-the-
dealers.
The
answer
of
sale
of
the
available
entire
for
issue
general
will
be
corporate
purposes, and it is anticipated that
these funds will temporarily be
invested
in
securities.
ferred,
ment
U.
S.
Government
Proceeds from the pre¬
with an equip¬
fund of ap¬
together
replacement
proximately $2,900,000, and other
funds, are expected to be used
eventually
for
acquiring
addi¬
tional
companies
working
on
govern¬
ment contracts in connection with
the
war
effort.
of these loans
"Since the
The total amount
$32,573,870.
was
began,
has loaned a total
of $57,631,815 to finance national
the
war
program
company
defense and
"Of
war
contracts.
production loans,
$10,846,199 were outstanding on
Dec. 31, 1943, the remainder hav¬
ing been repaid
in the usual
our
war
flying, communications and
the construction course of business. We have out¬
of hangars, and the purchase of
standing commitments to make
machinery and other facilities in additional war
production loans in
connection
with
present
routes the total amount of $9,000,199."
and possible new routes.
He also said that the
other equipment,
company
The new preferred has voting sold to the public a total of $68,rights, and is convertible, before 882,300 in U. S. Government se¬
Jan. 1, 1954, into common stock curities of all types during 1943. 7
at the rate of $30 per share of
Regarding real estate and mort¬
combination of factors the SEC to this will establish one
common.
The stock will be re¬ gages, Mr. McLaughlin said:
mentioned in Smyth vs. Ames) in precedent.
v:yYy;yy'. 7.'
• V%7
'7%
"Another precedent, incidental deemable as a whole or, in part
favor of original cost, it refused
"The book value of our bank
at
the
to admit that it had done so, but but more important to a greater
following
redemption buildings and other real estate wa$held that it was not really inter¬ number of persons than the first,
prices: $107.50 a share on or be¬ reduced
by a total of $461,061 dur¬
ested in the valuation methods will be the stand of the SEC on fore Jap. 1, 1946; SI05 thereafter
ing the year. Bank buildings were
used by the FPC but onlyi in the the question of the legality of the and on or before Jan. 1, 1954; and carried at
$4,230,411 at the year"end
result".
The
Court
held price-maintenance provisions of $102.50 after Jan. 1, 1954, includ¬
end, a reduction of $284,966 since'
that "rates which enable the com¬ syndicate
agreements.
This 7. is ing in each instance cumulative the end of
1942, while other regl
dividends.
pany to operate successfully, to apart from whatever action the
;.':;'7, 1 "Yy7. 77 7" 7 y
estate was carried at $87,169,,a
maintain its financial integrity, to Department of Justice may take
Other members of the under¬ reduction
of
$176,095, or about
;
;
/• 7
attract capital, and to compensate ih the matter.
writing group are: Blyth & Co., 67% from the figure of $263,264
"The third precedent will arise
its investors for the risks assumed
Inc.; Hornblower & Weeks; Smith, at the end of 1942. 7 7
No matter
cannot be condemned as invalid, from the first two.
Barney &; Co.; Lehman Bothers;
"Mortgages owned at the end
which way the SEC decides, it is
even though they might produce
Merrill Lynch, Pierce, Fenner & of the
year were carried at $1,371,only a meager return on the so- certain now that its decision will Beane; Drexel & Co.; Paine, Web¬
956, equivalent to about 70% of
be carried to the courts on appeal.
called 'fair value' rate base."
ber, Jackson
&
Curtis;
Dean their face value. The reduction in
While the Federal Power Com¬ Then, for the first time, a court Witter & Co.; A. G. Becker & Co., book value
during the year was
will
have the duty of, deciding
mission is concerned only with
Inc.;
Dominick
&
Dominick; $116,885."
7
.7- 1
whether or not the price agree¬
the regulation of wholesale nat¬
Glore, Forgan & Co.; Lee HigginIn his general
comments, Mr,,
ments among underwriters "con¬
son
ural gas rates (wholesale electric
Corp.; Kebbon, McCormick & McLaughlin declared:
stitutes a violation of the Antiinterstate business is to small to
Co.; Bacon, Whipple & Co.; Boett"The prospects of victory in the
Trust law. ;
,7 : ,7"'
cher & Co.; Bosworth, Chanute,
be a factor) Chairman Olds issued
"It is not denied that the funda¬
war now appear brighter than at
a statement several days after the
Loughridge & Co.; Ferris & Hardmental structure of the securities
any time since the United States
Court's decision stating that the
grove; Hay den, Miller & Co.; Mcentered it. Until the final armis¬
in
the United
States
latter "marks the beginning of a industry
Donald-Coolidge & Co.; Pacific
tice banking institutions lpust and
would be rocked if the underwrit¬
Co. of California; Whiting, Weeks
j new era" in regulation, and paves
will play an important part in the
ing agreement were to be de¬ &
(Continued on page 181)
Stubbs, Inc.; Schwabacher &
war
effort.
When peace comes,
clared a violation of the Sherman
Co.; E. W. Clark & Co.; Farwell,
"banks must be prepared to finance
Act*
~
Chapman & Co.; Folger, Nolan &
(or- the
.
•
•
"if
SEC
the
NASD
the
were
did
not
find
to
possess
that
the
to discipline its members
because price-maintenance agree¬
Public service Co. of Indiana, inc.
power
Common Stock
ments
are
in
restraint
Association
the
of
trade,
have
would
the
right to appeal to a Circuit Court
Appeals. In that case the De¬
of Justice would join
with the SEC, in all likelihood, in
of
Bought—Sold—Quoted
partment
fighting the appeal.
Bear, Stearns
&
Co.
Members New York Stock Exchange
NEW YORK
"Should
to
the
CHICAGO
the
SEC rule
that the
Association did have the right so
punish its members and that
price-maintenance agreements
were
not
then
the
in violation of
Department
^e law.
of Justice
Co., Inc.; Graham; Parsons & Co.;
of Chicago; Mit-
The Illinois Co.
post-war requirements of business
maximum
and industry to the
tent
consistent with sound
ex¬
bank¬
Tully &. Co.; Hemphill,
Fontoii. & Campbell, Inc.; J. A. ing principles, and practice." '
Hogle & Col; Rirkpatriek-Pettis
Co. and Kuhn, Loeb & Co.
Attractive Situation
chum,
D.
A.
Schulte, Inc., offers in¬
possibilities in view of
recent developments, according to
Chicago Rapid Transit Co. is¬
a
circular being
distributed by
sues have interesting possibilities
according to a brochure prepared Stanley Heller & Co., 30 Pine
by Leason & Co., Inc., 39 South Street, New York City, members
of the New York Curb Exchange.
La
Salle
Street,
Chicago, \ 111.
Copies of this brochure may be Copies of this circular may be
Cgo. Transit Interesting
teresting
.
obtained
son
&
upon
Co., Inc.
request from Lea-
obtained
from
Stanley
Co. upon request.
Heller
&
-
Volume
Number
159
,-.u
v>
THE
4246
COMMERCIAL & FINANCIAL CHRONICLE
169
Canadian Securities
The demand for.
will
Americaxtv Bankers
customer as
single
industry's largest
the
remain
wartime strength, and
long as the army and navy are retained at
will have first call on supplies. Even if peace comes during 1944, it
seems
likely that Government demands will continue high until
dairying in tne
y
nounced
for the industry to
liberated is
'fill all civilian
re-
near
However, demand has undoubtedly been stimulated by a
better appreciation of dairy pro¬
ducts, as a result of wartime edu¬
cation in nutrition, and the wider
and
the per¬
sonnel of the use of milk products as substi¬
military forces tutes for even scarcer foods.
i s
drastically
There seems to be little doubt
reduced.
that there will be a long-term up¬
The
course
turn
in
the
demand for dairy
pro-
pre-war
ductioh levels,
of
the
dairy
industry
ing
dur¬
will
1944
and this trend may be
to civil¬
ian life of millions of men whose
products,
accelerated by the return
the
and
war
exigencies
G.
f
wartime
o u. r
Montague
o
economy. Eco¬
nomic laws will probably remain
in
largely
Government policy will con¬
and
tinue
The
the
as
to
make
the indus¬
forecast:
try's sales volume will be limited
only by the ability of! the nation's
,.!, dairy farms to
produce milk.
There will be
a
max-ket for^very
pound produced.
,
There
f
considerable
is
t
uncer¬
about the future of milk
production, although, according to
Government estimates, farm income during 1943 reached an alltainty
.
.
time
A
high.
goal for
tion has
been
produc¬
1944 milk
.
established
by the
War Food Administration and the
state
boards
war
121
at
billion
This goal is about three
pounds more than the es
timated 1943 milk yield, and, ac¬
pounds.
billion
cording • to Government econo¬
mists, can be achieved only under
conditions—all
certain
sumption habits, arid the mainte¬
nance and improvement of these
new trends is a logical post-war
In
of
industry
is organized to process and mar¬
ket the output of the nation's dairy
will
be
The
necessary."
farms/ and economic and natural
sudden and
limitations make any
increase
sizeable
in, the
pi'esent
high rate of milk production un¬
likely./ -Y}
limited
A
of
number
regard
to
aside
manpower,
from absorbing workers who are
now in the armed forces, it seems
unlikely
that
the
dairy
industry
will be able to offer expanded em¬
ployment
on the same large scale
in the planning of
manufacturing industries.
which figures
many
HBMJWI
With
The
effect
full
of
dairy products is appreciated by
outside the dairy in¬
dustry. In the case of butter, for
example, the U. S, Bureau of
Agricultural Economics reported
the highest Dec.
1 cold storage
holdings
in histoiry—176,000,000
pounds. Of this amount, however,
two
Government
agencies held
108,000,000 pouhds, while a large
part of the balance had been obli¬
gated to the Government or was
owned by the military services.
Currently, the Government is
depending upon these stocks and
is not buying the winter butter
make.
It
reduced
-
the year
months of
25%
of
when
the
its
cheese re¬
last two
from 50%' to
during. the
quirements
production.
flush
milk
However,
production
in the Spring, and
dairy products are manufactured
at an increasing rate, the Govern¬
ment has
indicated heavy pur¬
season
opens
Domestic
demand
during
1944
probably will be higher than in
any of the so-called normal years,
but the supply available for civil¬
ian needs will be sharply lim¬
ited by Government
and the output of
dairy herds.
crease
requirements
country's
The anticipated in¬
the
in civilian demand is based
partly on changes in consuming
habits, which are believed to have
occurred
during
the
last few
years,
and partly
the continua¬
incomes.
civilian demand
on
tion of high consumer
Capital and Securities Mar¬
Division
of
the
New
York
Chapter of the American Statis¬
tical Association will
meeting at
Lexington. Ave.
New
York,
6 p.m.!
,
hold
January
on
■ ■;■■■'.
.
a
C
19th
o
McGinnis
of
Pflugfelder,
Bampton & Rust, on Railroads;
and James H. Hughes of Smith
Barney & Co., on the stock mar¬
ket.
Shelby Cullom Davis will
preside.
'
"
$2.50
thereafter.
-in
made
for
joined
January 15th; $3.00
Reservations must be
•'
advance
should
be
Slade,
and
checks
District
East
City.
sent
57th
to
Helen
•
consists
Brundage,
shall
Miss
'Representative,
Street, New York
The Comrriittee in
dinner
of
Story
Dunn,
charge of the
Warren
&
Homer
Rose;
Clark,
Mar¬
&
Co., Inc;
H. M. Hartley; Benjamin
Graham,
Graham Newman Corp.; L.
O.
Hooper, W, E. Hutton & Co.;
Glenn
Munn,
Paine,
Webber,
Jackson
&
current
Toronto
months
of
its
current
Curtis;
H. Lewis,
John H. Lewis & Co.; L.
Gilaryi,
Securities & Exchange Commis¬
sion; J. McMullen; John Mclnerney; Ragnar D. Naess, Naess &
J.
Montreal
Winnipeg:
London, England
Vancouver
in
the
four
like
month
-
says.
Moreover, the 512 new mem¬
joining the Association in
bers
first four months of the
the
fiscal
rent
exceeds
year,
banks the total of 495
bers that
fiscal
cur¬
17
by
new
mem¬
By BRUCE WILLIAMS
!; ,/
On
analysis, the divergence of opinion between the two schools
of thought on currency stabilization, is not as great as it appears at
first sight.
The main difference is in timing. The advocates of the
global schemes would have all currencies stabilized at the same time,
and
countries would be permitted
all
On the other hand, the
practical school, which adheres to<S>the
"key currencies" approach, ity in Nova Scotias and New
would first stabilize the pound Brunswicks, which were quoted at
joined during the entire
1942-43,
year
and the dollar on a gold basis, and
report then include other countries who
the
would
Outstanding membership gains
were made by the Association in
currency
the
following states: Indiana, un¬
der the leadership of A. B. A.
President
Vice
Oscar
All
be
hour to
President
Vice
Richard
W.
Trefz; Virginia, under State Vice
President John C. Davis; Minne¬
sota and Wisconsin, under Region¬
Vice
al
President
C.
Herman
Matzke and State Vice Presidents
N. A. Welle and Max
and
W. Minton and
Presidents
Vice
State
Regional
under
Missouri,
Vice President J.
H.
John
Crocker and Walter Pettit.
Outstanding among the records
Organization Com¬
and
members
presidents
that
was
state
vice
achieved
in
Nebraska, where, following Or¬
ganization Committee meetings in
Omaha and Grand Island, a total
of
'
>
agreement
at
42
eight
one day, of which
membership renewals.
were
The following States now have
period.
this late
at
The internal issues continued in
on
demand and
world
a
satisfactory
dollar
1014%,
discount.
of activity
about
2
ar¬
There was a
and a rise of
in internal utili¬
points
would fix the
comparative values of the pound
ties, which brought about an im¬
provement in the "arbitrage" rate
and the dollar.
to
There are, however, two cur¬
rencies
if
tomorrow,
are
lars, the values of which could
able
be
issue
immediately fixed at parity
another.
are
inclined
now
to
con¬
National Rail¬
of Canadian
5s of
1969, callable July
1,
1944, Investors would be well ad¬
vised to do their owh refinancing
early
as
look
for
higher
possible,
as
to
avoid
a
returns.
ment isues with
a
maximum
cou¬
Dominions
the
of 2i/2%, that it is increas¬
ingly imperative to seek diversi¬
fication and higher yields.
The
2'4s and
2^s in
pon
the middle of last year.
membership in the Associ¬
Idaho,
Louisiana,
Business
does
observation
University
not
production
held
1943,
strikesstrikes
in
ment
business
Governments, 30.4% are in Ca¬
total
fourth
ceeding
the
a
of
tons
through
set
several
of
loss
the
steel
strikes,
new
consecutive
record
year,
the
for
ex¬
nearly three million
previous peak output of
by
86,029,921 tons in 1942.
"During
"•
production
reduced to 7,265,777
December,
steel was
to
begin
Feb.
4,
month, 7,374,447 tons of steel
px-oduced,equivalent
to
1,718,985 tons per week.
In De¬
cember
1942,
steel
production
totaled
7,304,540
tons
for the
month, or 1,652,611 tons per week.
the
was
at
tion
Chairman
ar^Increased
Marketing.
higher prices.
ions were
a
turnover mostly
Domin¬
Direct
shade better in quiet
quite
October,
1969, in demand at II6V4 and the
4V2S of 1951 bid at 111%. Ontarios
and Quebecs were firm but deal¬
ings were on a small scale. Brit¬
ish Columbias were neglected, but
there was a resumption of activtrading.
strong
Nationals
with the 5s
course,
of
the
The
rri
B.
Hotchkiss,
Department
content
.
and prospective em¬
prepare
advertising for such pa¬
has
been
arranged
operation
with
Associated
pers,
ness
Papers.
&
Company
STREET, NEW YORK 5
WHitehall 3 -187-1
OOJ
94l3% of capacity, compared with
98.6% in November and 96.6% in
a
year
1943
rate-
ago.
of
The De¬
operations
the lowest rate at which the
steel industry
1941." ■
operated since July
CANADIAN SECURITIES
Government
♦
Provincial
of
the
advertising agencies that plan and
„
64 WALL
of
ployees of business papers and of
lAYLOR,
"During December the stepl in¬
dustry operated at an average of
cember
new
which is designed mainly
for present
were
of
G.
Prof.
of
past week, although there
no exceptional activity, there
er
December
Sched¬
will meet Friday evenings.
course
tons, an average of 1,643,841 tons
per week.
In November, a short¬
were
Jan. 9
on
It will be given under the direc¬
was
thousand
uled
A
With regard to the market for
the
which further adds:
"Despite
added a course in
by Dean John T. Madden.
holdings of securities other than
nadian issues.
York
paper
ing, it was announced
Co.
was
iias
Ac¬
Commerce,
advertising to its
offerings in the field of market¬
shows that, of its
coal
anticipated,
production
Empire Trust
and
the
amounting
to
88,872,598 tons for the year,
according to a statement by the
American Iron and Steel Institute,
hundred
the
of
of New York
year,
December
in
earlier
than
steel in
steel mill
of
by
down
of
and Finance of New
counts
higher yields.
Paper Adv.
School
The
however, at least one of
such investors; the recent state¬
was
the
be
redemption of the $60,000,000
way
Turning to the investment mar¬
kets for the past week, there were
indications that the larger insti¬
tutions
in
doubtlessly
siderably influenced by the prob¬
the U. S. and Canadian dol¬
one
developments
will
market
They
necessary.
15% discount.
Future
could be stabilized
that
This
of
Canadian
surge
cover,
.
the
the "free" market was firm at
in
that
rangement
and
tons
re¬
covered slightly from their recent
It tow levels.
corpoi-ate bond market
is thus
Nevada, commencing to receive better sup¬
Utah, Oregon, Arizona, New Mex¬ port, but it is amazing that mox*e
attention is not paid to Canadian
ico, and the District of Columbia.
securities, which provide a more
adequate form of diversification
the
basis, and
Albertas
So large a repetition of the state of affairs
prevailed
following
the
proportion of their portfolios is which
by Govern¬ surprise call for redemption of
banks became members of automatically filled
the A. B. A. In
less
4%
a
and
,
fact, it will
immediately to arrive
mutually
a
on
Saskatchewan
matter of
a
steady with the
were
4M>s of 1956
:
and obtain uni¬
convene
not be easy
with
of the various
mittee
versal
impossible
scheme. As
Stieg; Noirih
Carolina, under State Vice Presi¬
dent Ben R. Roberts, and Illinois
Manitobas
world
a
agree
enter the post-war
we
Frenzel; Nebraska, under Region¬
State
yields of 3.35% and 3.70%, respec¬
tively, for the longer term issues.
that now is the
time to settle this problem, before
appears
Vice President s. O. Peck and
willing to join
union.
A
will
F.
al
to raise their many voices in
support of their particular points* of view.
shows.
State.
Canadian: Securities
;f !::;/";l A
period, of the previous year, the
Organization Committee's report
1943
reserva¬
Cummings; L. F. Rothschild, L. F.
cannot, of course, be accurately Rothschild & Co.; B. F. Story,
measured, since shortages and ra~ Brundage,
Story & Rose;
and
tioning have rnadeGt impossible Helen Slade.
Even
four
first
fiscal year reached 512, more than
double the total of 243 banks that
Total
and the speakers will be
Haggott Beckhart on
Banking; Herbert Harris of For¬
tune Magazine on Labor; Patrick
tions paid by
mem¬
Street, New York 5
cember, the total, of new members
that joined thq Association in the
-
1944,"
are
A.'s
B.
Incorporated
14 Wall
new
at
Professor B.
Tickets
169
din¬
The subject is "The Outlook for
B.
A.
the
to
of
Hotel Sheraton,
at 37th Street
ner
400
will be resumed.
chases
The
kets
addition
A
A -/'
'
%
bership rolls in the month of De¬
ation:
Government,
few people
•'
-
the
members
100%
J,
requirements on total supplies of
-
Toronto & Montreal
Wood, Gundy & Co.
Traders
City National Bank, Kansas
City,, Mo.
/:
them
beyond the control of the indus¬
try.
the
Wires to
is
who
new
plants may be needed to provide
products which will be in greater
demand after the war, or to han¬
dle the output of newly developed
dairy areas.
New or improved
equipment to replace machinery
subjected to unusual wear dur¬
ing the war will be needed.
In
of
Public Utility
Direct Private
.
unlikely that any great expansion
However, it is possible
one
con¬
im¬
serve as an
bred, for the most part, by war¬
time necessity, predictions of the
future must be tempered by un¬
certainty.
in
considering the post-war po¬
sition of the industry, it seems
portant agency of supply. :
In these abnormal,;! conditions,
'»
changes
factor.
controlling
industry will
favored by all current
seem
imminent
suspension job for the industry.
state, of
a
ducts
and
Committee,
President
Vice
be determined
eating habits have been radically
almost en¬ changed during their service in
tirely by the the Army and Navy. Dairy pro¬
by
ganization
orders.
sumed at
Theo.
Provincial
v
Municipal
Robert L. Dominick,
Chairman of the. Association's Or¬
Gate
countries to be
MM
Government
Association
counted upon to continue during the four - month period
not the milk production goals are attained. The Sept. 1 - Dec. 31, 1943, it is an¬
dairy products can be
unabated, whether or
Government
Moresthan 500 banks joined the
Borden Company
By THEODORE G. MONTAGUE, President, The
*
Municipal
♦
Corporate
in co¬
Busi-
Thursday, January 13, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
>7
Analyses
Recent
Request
on
1944
Inquiries Invited in
ALL CHICAGO
merchants Distilling Corp.
'•
Ampco Metal, Inc.
' ''
'!!
"
'
,
on
Stock
Common
Real Estate
^
■
,
Analysis
'
,
'
•
r
request
now
SECURITIES
above
the
under
review,
annual
Our
title, is
Securities
FOREIGN
A Year of Transition
'
'
in process of preparation.
'
''v:
.."v.'''.-,. •
Standard Silica Corp.
Copy
request
on
Bought
•
Ryan-Nichols
FAROLL BROTHERS
York and principal
New
Member
Stock Exchanges
Tele. CG 156
1430
Consolidated Gas Utilities, Com.
Northern States Power, Pfds.
Midland Utilities 6's of 1938
Old Dominion Pr. 5's of 1951
Midland United $3.00 A Pfd.
S. La Salle Street
3
CG 1200
Dearborn 9600
We
have
prepared
a
recent
analysis of
CHICAGO SURFACE
LINES
&
CO.
ADAMS
231
South La Salle Street
Chicago U, Illinois
Phone State 0101
Teletype CG 361
Interstate Aircraft and
Engineering Corporation
BOUGHT—SOU?—QUOTED
FRED W. FAIRMAN & CO.
208 SOOTH LA SALLE STREET
CHICAGO 4, ILLINOIS
Members
Stock
Chicago
offerings.
As
an
ex¬
RANDOLPH 4696
South La
.
ures
North Shore & Milwaukee
cago,
■'
■■
■
' '
■
.- j|f
J.J'y
777''7!
Chicago Sani¬
Some
/V.;.
Detroit
in' par¬
bonds,
Apropos of the Chicago
School
reported intention to re¬
finance the $22,300,000 of 4 Y2%
revolving fund
bonds of 1934
which become callable on Aug. 1,
over
headed
a
the
by
and
Corp.
to
B.
J.
selling group
Class
Steel
Reliance
and
common.
a
analysis
prepared a re¬
Ampco Metal, Inc.
on
which is available on request.
Sincere & Co., 231 So. La
'77/7
Salle
on Flour
Mills of America 4s of 1960 and
have
St.,
stock
common
Light
data
recent
and Iowa Electric
Power
&
preferred stock,
Y.¬
be had on request,
which may
Straus Securities Co., 135
South
have prepared up-todate analyses, shewing latest fig¬
La Salle St.,
Consumers
California
of
ures,
1955; United
Yards Corporation preferred
Corporation 3-5s of
Stock
and Mid-States Shoe Co.
Copies may be had upon
stock*
common.
7.
request
Strauss
•
Bros.,
their new
that
announce
bulletin entitled
Trade
of
Board
Bldg.,
sion"
7:''V< 7; 7'
.
of
Deci¬
just off the press.
is
This
"Year
17T)
&
the
Again Head /
•
Resources
Water
cent
Boston
First
Van Ingen
result of the financing,
Rico
Ryan-Nichols & Co., 105 South
(Continued on page
Of GOO Trade Board
As
Copies
stock.
par
La Salle St., have
7"7
mary.,
O'Brien
Puerto
no
from the firm upon re¬
y;7:j
• ,7;
quest '
cipation in this selling group.
Board's
A
Caswell & Co., 120 So. La Salle
-
each of the under¬
writers retained a major parti¬
and
Co.,
Co.; Inc. convertible participating
available
Chicago
turned
memorandum
had from the firm upon
be
request. 7
bond houses— Copies may be had upon request
Barcus, Kindred & Co., and Knee- from Caswell & Co, '7%77' ;/7:/;':/v
land & Co.," together with B. J.
Van Ingen & Co., New York, are
Cruttenden & Co., 209 South La
The action culminated a stead¬
underwriting the current offering Salle St., have prepared a current
ily more active municipal market
of $10,000,000 Puerto Rico Water memorandum on Republic of Peru
during the early part of the new
Resources Authority 2l/2%, elec¬ which will be sent upon request.
year.77:;v/7Y/77//>^Y-/ /7^/7'7. Y//Y7/': tric revenue bonds. Last
August,
the underwriters contracted with
Another factor of interest was
Doyle, O'Connor Si Co., 135 So.
Antonio
Luchetti,
executive La Salle
the recently revised bond ratings
St., have compiled late
director of the authority, to serve
data on Midland Utilities 6s of
published by Moody's. Hundreds
as fiscal agents in connection with
of issues were raised in rating,
1938
reorganization and
copies
the financing program, and defi¬
will be sent upon request.
affecting the volume and prices
nite purchase of the $20,000,000
of municipals,,7
; 77 ■: 7/7:7/ ■ • y.
bonds involved in the undertak¬
Enyart, Van Camp & Co., Inc.,
The market was considerably
ing was later consummated in 100 West Monroe St., have pre¬
broadened by the changes, since
San Juan, Porto Rico, by repre¬
pared recent analyses of Domestic
many funds and hanks are for¬
sentatives of the bond houses.
Industries, Inc. and Ampco Metal,
bidden, by their rules, to buy
The three underwriters placed
Inc., stocks and these are avail¬
bonds under a certain rating.
$8,000,000 of the revenue issue
able upon request.
777:////7;77v;;.
Reclassification from "Baa" to
locally
in
Puerto < Rico
and
"A" particularly affected these
$2,000,000 privately in the Uni¬
David A. Noyes & Co., 208 South
issues. Included in this change
ted States. The $10,000,000 now
La Salle St., will send upon re¬
were City of Chicago, Chicago
being
publicly
offered
was
quest their Monthly Stock Sum¬
Board
of
Education,
Chicago
Two
South
Railroad, copies of which may
extent
the St.; have available late figures on
7J':;7 vc; : Jacobs Aircraft Engine common
.
H, Rollins & Sons, Inc., 135
La Salle St., have a late
on Federal Electric
/> E.;'
have November fig¬
available on earnings of Chi¬
Salle St., now
amount to be refunded.
;
Street
4
Chicago Recommendations
Brailsford & Co., 208
that
to
reducing
Salle
La
CHICAGO
Toronto
Indianapolis
York
New
1309
considerable talk along LaSalle Street last week con-,
cerning the sudden and sharp rise in the prices of State of Arkansas
bonds.
The upward movement ranged from 5 basis points on medium
serial obligations to as much as 30 basis points on medium and long
term options of term bonds.
'
/ /^'/v':-/ 'Y://'/: -V?
Either as a result of sales or to reconsider prices, some dealers im¬
mediately withdrew their lists of *
Arkansas
So.
208
Authority, which was created by
the Puerto Rico legislature two
and a half years ago, will own
CHICAGO, ILL.—P. R. O'Brien
was
re-elected President of the
Utah Bail® Products
Gels Army-Havy
Co.
Products
Chicago Board
fourth
excellence
at
Radio
the
awarded
was
"E"
Army-Navy
of Trade for the
successive term, breaking
"E"
ILL. —Utah
CHICAGO,
for
production
ceremonies held on
1§44, mention of which was made
a
and operate virtually all the elec¬
precedent of nearly a century January 7th.
previously in these columns, the
About
3,500
employees
and
tric
utility
properties : of
the of the Association's existence. Mr?
Chicago Civic Federation points
island. Approximately $10,000,000 O'Brien was the nominee on the guests witnessed the presentation
out that, in addition to the regular
of the pennant by Lt. Col. Nathan
of the proceeds of the $20,000,000 regular ticket and was unopposed.
tax levy, the rental of school fund
Boruszak of the Dayton Signal
issue will be used by the authority
Harry C Schaack and Richard
property was pledged as security
for the
acquisition of the pri¬ F. Uhlmann, / unopposed candi¬ Corps procurement division.
for the payment of the bonds.
Fred R. Tuerk, president of the
properties dates, were re-elected First and
This money; the Federation says, vately-owned electric
declared
that
"this
Second Vice-Presidents, respec¬ company,
has been accumulating since 1934 serving the San Juan area, the
is an added incentive
island's capital and largest city. tively. :/■■'/••';/: /• 7 Y-"":7/. /.'7/ V; ! '■" ' -■'": honor
in a special "bond service" fund
to spur us on to greater efforts,"
The following were elected di¬
Purchase of the system serving
(administered by & Trustee) and
the
Mayaguez
area,
the
third rectors to serve three years: Earle and pointed out that the company
amounted to $5,763,707 as of Nov.
M.
Combs,
Jr.,
Sylvester
J. has tripled its war output in the
30, 1943. As of the same date the largest city, will require a sum
last year with only a 30%
in¬
"tax fund", representing .proceeds of $1,700,000 and the remaining Meyers, Frank A. Miller, G. Wilcrease
in employees.
In normal
lard Hales, and Thomas E. Hosty.
of bond levies, amounted to $5,- funds will be devoted as follows:
Lacy J. Lee was elected to serve times Utah is a leading manufac¬
turer of loud speakers and other
330,878.
"'V.; ' $5,600,000 to retire outstanding in¬ as director for one year.
component parts for the radio in¬
Others elected were:
In
a
communication
to
the debtedness, $1,000,000 to establish
/ 7-77.//
Nominating
Committee:
Alex dustry. ■ '■';/
Board of Education, the Federa¬ a special reserve fund, $1,000,000
Mr. Tuerk is also a partner in
Moore and Brackett B. Denniston.
tion said that it presumed that for new construction, and $700,000
& Co., Chicago
in¬
Committee on Appeals: Ernest Cruttenden
the entire cash balance available for working capital.
C. Brunke, Clarence W. Elmer, vestment firm, members of the
New
York
and
Chicago Stock)
The
addition
of the newly
in both funds would be used to
Arthur E. Ladish, JamesP. Ryan,
.
Exchange
Chicago Board of Trade
Bell Sys. Tele. CG 537
Tel. RANdolph 4068
CG
principal exchanges
231 South LaSalle Street
^/V-
There was
ticular, went up 10 basis points on
the new ratings.
Request
7 and all
Ulfg: Chicago Brevities
tary District.
Descriptive Brochure Available
3
1520
Andover
Tele. CG 146
9200
Park District, and
on
// CHICAGO
of the,'market, movement,
one
1952 optional maturity was
offered the preceding week on a
basis to yield 2.40%, but last week
was priced to yield 2.10%,
Incorporated
CHICAGO
Tel, Dearborn
ZIPPIN & COMPANY
Exchange
Stock
York
New
•
*
Salle St.
South La
105
Street • Chicago 4
ample
Doyle, O'Connor & Co.
135
/Y^;"/& CO./7/7Y
Chicago Stock Exchange
209 S. La Salle
CHICAGO 4
Andover
Phone
Quoted
—
THOMSON & McKINNON
Member?
William A. Fuller & Co.
Members of
Salle St.
So. La
208
Sold
—
Stock
Common
.
.
„
Bought
—
Sold
—
Quoted
Calif/Consumers Corp'n
3-5s
of
19SS
United Stock Yards Corp'n
pfd.
.
.
,
Mid-States Shoe Co,
Com.
We
have
Active
Markets
in
all
Chicago Traction Securities
redeem the maximum possible
Straus Securities Company
135
South La Salle St., Chicago
the revolving fund
(Continued on page 171)
3, IU.
7
CUSTOMERS MAN WANTED
We have
an
Trading Interest in
man
Domestic Industries
W.
Exchanges.
Squire.
Committee:
Robert
L. A. Laybourn, Ed¬
Nieft, Clarence Rowland,
Jr., and Eugene J. Ryan.
Darcy,
of highest
character,
opportunity.
Full cooperation.
.
proven
Excellent
Applications strictly
William J. Lawlor, Jr., vicepresident of Hickey & Co., Inc.,
135 South La Salle Street, Chi¬
is on leave of absence, serv¬
ing in the U. S. Navy. At present
cago,
he
is
Naval Training
confidential.
at
stationed
Lakes
Great
•
ESTABLISHED 1896
.
••
:
ANDover
3
2424
York
Stock
New
Exchange
York
o
,
CG 965
Chicago Stock Exchange
Curb Exchange
111 South La Salle Street, Chicago
memberships in the
for transfer
Members
New
Chi¬
Stock Exchange were posted
Two
cago
CHICAGO
of
been
on
La
Street
Salle
for
25
years.
Station.
Cgo. Exch. Memberships
ALFRED L. BAKER & CO.
West Monroe Street
South La Salle Street,
pneumonia in Copley
Hospital, Aurora.
Mr. > Griffeth
was widely known in the invest¬
ment business, not 'only in Chicago
but all over the country, and had
231
Dixon Bretscher Noonan
Pearson Co.
100
Griffeth Dead
feth, vice president of Adams &
died
Hearst Consol. "A"
Enyart, Van Camp & Co., Inc.
H* Guy
CHICAGO, ILL.—H. Guy Grif¬
Co.,
Lawlor In Navy
ability and potential partnership caliber.
Ampco Metal
Arbitration
.
opening for a conservative and consci¬
entious customers
Byllesby
and Charles P.
ward
Tele. CGO 650-651
Tel. ANDover 5700
II. M.
acquired facilities to its exist-
of
bonds, thereby
{Associate)
Tel. Central 1474
John
G.
partner
on
La
January 7; one to
Forge
of John
of
G. La
Chicago,
Forge &
Co., and the other to William H.
Sills
of
Chicago, President of
Sills, Minton- & Co., Inc.
-
SPRINGFIELD, ILL. — DixonFirst National
Bretscher Co., Inc.,
Bank
their
have
Building,
firm
name
to
scher Noonan. Inc.,
ary
1st.
are
Noah
changed
Dixon Bret¬
effective Janu¬
Members of the
M.
Dixon,
firm
Kurt
Bretscher and Paul R. Noonan.
T.
'•
1
•
•
r
r
■' V
,
,
Volume 159
&
,
Number
THE COMMERCIAL & FINANCIAL CHRONICLE
4246
171
J
SILLY?
ISN'T THIS
Earned $4.79 in
Markets in all
1942 EARNINGS
V
North Continent
Utilities, Pfd.
Fuller Mfg. Co.
Chicago Mill & Lumber Co.
Common
Rapid Transit Co.
Essential Industry?
We Think So.
Only One Class of Stock (618,546 Shs.)
No Bonds
Book Value $9.45
Net Current Assets $4.28
American Gas & Power Co.
ISSUES
208 So. La Salle St.
Jacobs Aircraft Engine
-
IN
Kansas City Public Service Co,
Why Sure!
WHAT IS IT?
INTEREST
Four Months 1943
1942 and $2.46 First
SELLING FOR LESS THAN
Renegotiation?
TRADING
"■
'Write for our
Bldg.
late brochure
'
You
have
can
circular,
a
C. L. Schmidt & Co.
L'EASON Cr CO. INC.
tmf; CAS W E L L
CO
&
*;;0 120 South La Salle Street, CHICAGO 3
Teletype CG ll22
v
;
*
:
:
39 So. La Salle
Phone State 6001
' '
;
Chicago Brevities
:
.
■.
properties,
form,
from
;
with
in
maturities
to 25
one
is
Cook
running
,
state
banks
of
Chicago com¬
bined increased only slightly in
the period between the last two
calls for statements of condition.
■
The Dec. 31, 1943
figure aggre¬
gated $1,132,624,000, against the
total of $1,130,263,000 for national
banks
as
banks
as
of Oct.
of
Total
18 and for
state
deposits,
the
on
same
from
declined
to
$3,724,577,000
$4,093,802,000.
funding bond issue is expected to
The
;:
Bond
minded. Included
war,
brief/ summaries
several
covering
situa¬
tions most likely to benefit from
general aspect, of coming
events.
Copies may be had upon
.
/.'7;7 '77;;.;
request.
of
assessor
has
eliminating
;v; .;i:7
liquidations
in
the
past
.
the year, Thomson & McKinnon's
current Stock Review of the Week
and Weekly
Bond Review take
almost
entirely
replaced their; holdings of muni¬
cipals and other securities with
for
each
developed
toward this end.
position
left to
loan
war
pressure
funds
where
are
they
in
now
have
a
little
liquidate, it is believed.
NASD Appeal For Reverse Of SEC Order In Curb
"Unlisted" Case Before US Droit Court
.
^
the
brought before
a
Federal court for review.
The issue is
awaiting decision by the U. S. Circuit Court of Appeals.
This
Jan.
7
is
learned
from
from
advices
to
the
"Wall
Journal"
of
Philadelphia bu-7*
reau, which in reporting the ac¬ to the Commission the determina¬
tion, also said:
■ ■ '■}
A■
■.';U- tion of an Exchange's vicinity,. He
"The appeal of the National As¬
sociation
Securities
of
Dealers,
Inc., for reversal of the order en¬
disclosed,, that
Central
bonds
called
ment
had
been
with
interest
Power
for
pay¬
Traders Club of
the
of the Bond
Chicago, Inc. has
Kentucky Utilities Co., due 1970, mained..
was
a
United
States
Circuit
Court of
"The NASD attacked the legal¬
the
of
order
the
on
ground
that the Commission did not have
sufficient evidence of the distribu¬
tion and the trading of the securi¬
ties in the 'vicinity' of the Curb.
It challenged
the
definition
that
the vicinity of the Curb comprises
the seven States of Massachusetts,
York,
Island, Connecticut, New
New Jersey, Pennsylvania
and Ohio.
."
.
ity should be restricted to
narrower
one
areas:
of
New
York
City alone, or one hour's
commuting distance to New York
City, or the boundaries of an area
that
for
the
A.
.
Lock/wood,
New
York
Curb,
argument supporting the
judgment of the Commission. ;, v
an
officers
1944-1945
the
for
slate
of
year
for
presentation to the members:
cV President:
Harry
L.
Nelson,
Biyth & Co., inc.,;,-
"Judges John Biggs, Jr., Charles
C.
Star
Hornblower & Weeks.
Koer-
The First. National
:: '
.
Samuel
Treasurer:
Sachnoff,
Bank of Chi¬
a
not
indi¬
generally equi-distant be¬
New York City and the
nearest
surrounding
which there
are
cities
in
national security
"Paul
PHILADELPHIA, PA.—The in¬
Co., Inc.,
1420
Walnut
Street, announces
vestment firm of Paul &
that
the
W.
City.
Frum,
security
of
F. Williams has be¬
associated with them in the
sales
department
of
their
delphia office.
; V:
In the past Mr. Williams was in
charge of the local office of J:
St., have prepared a summary of
new
payment plan on Brazil
Dollar and Sterling Bonds. Copies
who
guests
mittee.."
Entertainment
com¬
quest.,
7'"7', : 77
* v:•
Illinois Township
Road Bonds
Highlights
Interstate's profit for 7-month
period to Nov. 31,1943, $407,893.21.
Earnings per share after taxes
for same period, $3.18.
Earnings per share after taxes
for the month of November, 740.
Net current assets as of Nov. 30,
$715,434, or approximately
per share.
Book
Value,
approximately,
$8.91.
Small capitalization, only
128,000 shares common stock—no
bonds—no
preferreds.
in
stock March; 250 cash December.
Aggressive management—small
capitalization — specialized
engi¬
neering facilities—all bespeak for
intelligent post-war planning.
Dividends
1943
date:
to
Bought
$5
—•
Sold
Quoted
—
DANIEL F. RICE & CO.
Members
New. York Stock Exchange
Chicago Board of Trade
and
141 W. Jackson
Blvd., Chicago 4
Teletype
CG
1276
Investment Securities
Public
Railroad
Utility
Industrial
Municipal Issues
•
We Maintain Active
Trading Markets
Leading Over-Counter Securities
in the
E. H. Rollins & Sons
'
Fernandez And Bander
,
CHICAGO,
ILL.— Don
Incorporated
:
South La Salle
135
Juan
CHICAGO
Street,
3
Fernandez and Donald C. Bauder
Qo.;|
Open In Hiami Beach
have
CHICAGO, ILL.—Daniel F. Rice
and Company has opened an office
in
the
Roney Plaza in Miami
Hargrave,
Daniel F. Rice
CG 530
become V associated
Direct
Lynch, Pierce, Fenper &
Beane in their Chicago office as
account
executives,
resident
Homer
partner
Wires'To
Principal
maintain an office in the
Ingraham Building in Miami as
well - as. offices
in Chicago and
other
Illinois
cities
with
Company
in
'
Vernon C. Badham
Martyn
and
and Robert
become associ¬
F.
Rice and
have
Daniel
headquarters in
their
have
will
and
the
new
Miarpi
Beach office which will be under
the
Offices
In
Cities Throughout
Country
P.
an¬
Mr. Fernandez was for¬
nounced.
Specialists in
CHICAGO
dent of the Great Lakes Insurance
Traction Securities
Company of Elgin.
&
Chicago No. Shore & Milw. R.R.
Clifford G. Fisher With
Comprehensive
McMaster Hutchinson
available
on
analyses
request.
(Special to The Financial Chronicle)
Clifford
C,
Fisher
of
Union
Brailsford & Co.
City, Ind., has been added to the
staff
Co.,
of
Hutchinson
McMaster
105
South
La
Salle
Street,
S.
208
&
La
Tel.
Street
Salle
CHICAGO
V
4
State 9868
CG 95
of Chicago, 111., members of the Chi¬
supervision
personal
Our
the
merly industrial editor with the
Beach, Joseph J. Rice, partner of Accurate Spring Manufacturing
of Chicago and
Mr.
the firm in Chicago, announced. Company
Daniel F. Rice and Company al¬ Bauder was recently vice presi¬
ready
Central 7540
...
with
Merrill
cago
Joseph J. Rice.
Stock Exchange.
Iowa Electric Co. Pfd.
MARKETS
for the
Baker, Weeks & Harden
4's
of
&
1960
Manager
of
Members
and
New
York
in
South
La
State
2400
Exchanges
Salle
CHICAGO
Exchange
Members
New
York
Security
Dealers
Ass'n
Board of Trade Bldg., Chicago 4
Telephone: Harrison 2075
Street
Teletype CG 129
4
CG
252
Direct Wire to New
I
York Office
no
them
of
way
our
for
issues
Maintaining
partment
Company
Stock
attractive
clients.
STRAUSS BROS.
Other Principal
231
ties, providing investment dealers
with
Com.
PA.—Baker,
Sincere and
writing and distribution of securi¬
MIDWEST
Flour Mills of America
Add Priory In Phila.
We specialize exclusively in under¬
Issued
Com.—When
Weeks & Harden, members of the
SERVING INVESTMENT DEALERS
NEW YORK
0''
SEC, contended that Congress left their office, 1421 Chestnut Street.
V:-
Engineering Corp.
So. Colorado Power Co.
Assistant
972
STREET, NEW YORK
BOwling Green 9-1432
will be sent by the firm upon re¬
T.
•
4
CG
»
WALL
I
the
Iowa Elec. Lt. & Power Pfd.
Arthur Warner & Co.
pointed
Randolph 36fl6
Phila¬
dealers,
Owrin C. Knusden, for the
the
of
Harry
Cleveland,
York
and
argued New
Philadelphia
Congress intended that the vicin¬ Stock Exchanges, announce that
ity of the Curb should constitute J.
Albert Priory has been ap¬
a
narrow
area
from New York
for
man
ated
Williams With Paul & Go.
CHICAGO
Zippin & Co., 208 So. La Salle
& Weeks, 39 South
Street, Chicago, Chair¬
Salle
A.
PHILADELPHIA,
exchanges.
La
they would hand down
decision."
231 S. La Salle St.
4.
Hornblower
New York.
did
are
tween
Out-of-town
plan to attend may obtain further
details
from
Peter
J.
Conlan,
five
cate when
at the La Salle
February 8th
on
who heard the
case
SECURITIES
Listed and Unlisted
ner;;Mitchell, Hutchins & Co.
1943,
Secretary:
Peter
J.
Conlan, $5.60
A. Jones and Herbert F. Goodrich
come
■ ■
"NASD contends that the vicin¬
three much
v
.
William
also the legality of
Commission's
Rhode
counsel
made
'■
Appeals.
ity
"Col.
taken under consideration by
So. La Salle St., Chicago
.
following
to
January 3,
tered July 3, 1943, by the SEC last, and had been stricken from
the trading list. The Court, asked
granting the applications of the
New York Curb Exchange to ex¬ him if he considered the case as
tend unlisted trading privileges to to the Central Power bonds moot
the Series A,s3% % first mortgage and he replied the striking of the
bonds of the.. Central Power .& bonds from trading dropped them
out of the case. He said the ques¬
Light Co., due 1967; and the first
tion as to the Kentucky bonds re¬
mortgage: bonds, 4% series, of the
on
requests to Thomson & McKinnon's Statistical Library, 231
The nomi¬
—
committee
nating
Hotel.
Street
its
MIDDLE WESTERN
of any of these
request. Address
a copy
Reviews free
And
CHICAGO, ILL.
place
now
glad to send
will be
McKinnon
Set Slate For 1944
Commission
been
&
Interstate Aircraft
first time an order by the Securities and Exchange
cago.:
V", ;/\
granting trading privileges to unlisted securities, andThe annual dinner and instal¬
its definition of what constitutes the "vicinity" of an
exchange has lation of officers will take
; ;
Members
and
policy
investment
643
Exchange
Chicago Stock Exchange
New York Curb Exchange (Assoc.)
Chicago Board of Trade
lists of individual securities.
Thomson
BLVDi, CHICAGO 4
640, 641 &
New York Stock
forecast for 1944,
a
CG
v
Transition,"
Chicago Bond Traders
selected
;;-'i,:
specific
a
.
have
Tele.
HICKS 6* PRICE
.
of
Year
JACKSON
W.
Tel. WAB. 8686 and Postal Telephone
your
coming, year. In addition thereto
high prices, traders in Chicago re¬ they now have in course of prep¬
port.
They point out, however,' aration an Annual Review entitled
that the volume of large liquida¬
tions by funds and institutions is
expected to fall sharply.
Most;
now
„
Tele. CG 878
6960
which includes
the
Vice-President:
For
are
post-y "1944— A
have resulted in extremely
week
Randolph
141
3
(Continued from p&ge 170)
-
.
should be-of interest to the
quick look marketwise back over
the past year and forward to the
The large
The long awaited Cook County
Tel.
fair cash value,
of
comparative basis, fell off to $6,.419,297,000
from
$6,748,535,000,: governments,
.and holdings of government i se¬
drive
has
curities
Vv'
;V As is customary at this time of
:' funds
Sept. 18.
CHICAGO
announced his
the socalled 37% adjustment factor and
of assessing all property at 100%
County
intention
years.}
Loans and discounts of national
and
involved.
claims
serial
Teletype CG 993
Chicago Recommendations
(Continued from page 1.7.0)
be delivered next week to Seipp,
iilg hydro-electric developments
Princell & Co., to whom it was
and
distributing systems will
awarded last Nov. 2.
The; bonds
give the Puerto Rico Water Re¬
have been printed,; but the attor¬
sources
Authority
a
physical
neys have not yet released, ap¬
plant valued at $33,000,000, The
$20,000,000 electric revenue v proving opinions on the issue, and
are
still
checking some of the
issue,
the
only
debt against
these
'
BOARD OF TRADE BUILDING
120 South La Salle Street
CHICAGO 3
Phone: Central 5690
1
Kneel and & Co.
Established 1922
St.
no
own,
we
compete
with dealers, but
exclusively.
their
retail de¬
serve
Correspondence
invited.
FLOYD IK CEHF COExclusively
120
Wholesalers
and
South La Salle
Chicago 3
Underwriters
Street
Thursday, January 13, 1944
& FINANCIAL CHRONICLE
THE COMMERCIAL
172
times
What's' Behind- Present ;;;
BailrMd
NATIONAL TOOL CO.
Stock
Common
A
new
descriptive Booklet
available
!
interfere
to
little
as
as
operation
railroads, and we all hope
speddy termination, v V /
possible
the
in
actual
of the
to Brokers
and Dealers
on
•.
*
request]
for
.
General
/i
3L®™ & (0®.
225 EAST
5392.
Daly
PHONES
normal functions,
and they will continue to handle?
Teletype MI 488
Chicago; State 0933
Commerce, Commission
Interstate
to carry on. their
MILWAUKEE 2
MASON ST.
Mr.
asked
has
Gross
Eastman,f Director of the Office of
Defense Transportation, /and the
the
part of the
same
tion
effort
transporta¬
that they have in
the
change in
Wisconsin Brevities
orders.
v/.'.'
It has
been generally* conceded
Milwaukee Banks in connection with the
that the railroads have done an
recent call showed that the First Wisconsin National Bank of Mil¬
outstanding job during this emer¬
waukee has increased its total assets to approximately $500,000,000.
but an industrialist re¬
Deposits totaled $450,930,750 at the end of the year.
Marshall & Ilsley gency, told me. he didn't under¬
cently
Bank and Marine National Exchange Bank footings showed material
stand how the railroads had done
increases—the Marshall & Ilsley totaled $117,525,000 and the Marine
so well in
this war as compared
National Exchange Bank $95,184,**—^
~
~
"
dend of 200 a share has just been with the First.World War,'He had
OOQ. The First Wisconsin National
looked upon railroads as sleepy,
Bank is controlled by Wisconsin declared, payable January 29 to
backward, antiquated, outmoded
Bankshares Corporation which is stockholders of record January 15.
and utterly unable to cope with
Phoenix Hosiery Company, Mil¬
widely traded in Milwaukee.
an
•
:
Company
reports waukee^ Was called its entire out¬
$1.77 per share for standing preferred stock at $115 a
the fiscal year ended October 31; share plus accumulated dividends
in contrast to $1.87 per share in of $32.37 a share, as of March
He
of
done.
Fuller Manufacturing Company
1S4.
l,
the preceding
fiscal year.
The
management stated that renego¬
tiation affecting 1942 operations
has been completed.
Paint
Badger
;
included:
corporations
Wisconsin
by
Hardware
&
stock,
which has re¬ Stores, Inc. declared an extra
dividend of 250 a share in addi¬
been delisted from the
tion to the regular 371/20 quar¬
Chicago Stock Exchange, is now
actively traded over-the-counter. terly, which was paid on January
The most recent market is S1" 3 to stock of record December 27.
cently
Dividends paid in 1943 to¬
share.
*
■
taled 500 a
{
Nekoosa-Edwards
Paper
Com¬
declared an extra dividend
of 500 a share in addition to the
pany
as
the present.
//./
President asked
..;/
So
r
when
your
to talk to you
me
of
such
amazed at what had been
was
it occurred to
declared
dividends
Recent
Common,
6%.
emergency
Belt
Chain
earnings
me
about railroads,
that it might be
to recite ^ome
interest
of the
for their remarkable per¬
reasons
formance in this war,
and to speak
briefly of their prospects after
the war, insofar as this can now
be foretold.
/;; ;
In order to
understand fully the
are now doing, it is
necessary to recall what they did
25 years ago and what has hap¬
pened to them since.
''
>
In 1918, the peak year of the
job the.roads
Paper Mills, Roths¬
First World War, class one rail¬
Wisconsin, reports profits regular 500 quarterly. Both were
roads handled 405,000,000,000 rev- .<
for the year ended
October 31 paid on December 30. The com¬
enue ton miles of freight, and 42,equal to $6.08 a share, compared pany reported net profits equal to
$7.21 a share for the first nine 000,000,000 passenger train miles, l
with $5.62 a share a year ago.
months of 1943—an increase
of In 1942, with 34%; fewer locomo¬
Marathon
child,
;
Nunn-Bush
Shoe
Co.,
Milwau¬
kee, reported net profits of $1.19
&
share
on
Common stock
against
the
after Preferred dividends,
$1.07 an 1942.
Total dividends
jpaid in 1943 were $1.00 a share,
in contrast to 800 in the preceding
year.
A regular quarterly divi¬
the corresponding tives, 25% fewer freight
ant" i
26% fewer passenger-cars, includ
period of 1942.
■'■i
ing Pullmans, they;handled 638,-:
James Manufacturing Company
000,000,000 ton miles of freight, 01;
declared $1.00 extra in addition to an increase of
57%; -and 53,000,-'
the usual 250
quarterly.
Both 000,000 passenger train miles, an
40 a share over
paid at the end of the year.
were
and
year
we
It can be
half.
a
met our Pearl Harbor
/
in the First World War.
past/ which means no
rate making proposals or service
Statements issued by
with a
1920
in
personnel of low morale, poor
physical condition, a high wage
structure
and insufficient reve¬
nues—all of this in the face of an
inflation that ran its course in the
next
cars
short¬
age in 1923, the railroads got to¬
gether and organized for an im¬
provement in facilities/equipment
and performance.
This was fol¬
lowed by a better
organization
among; railroads
through
the
Association of
to act as a
formation
of
American
Railroads
the
700
1,000 miles without
to
taken off.
In the
previous war, except for
perishable trains,
few manifest
a
freight. traffic was handled from
Appliances In
The BiSSioeis;
cars
each
-■
operating division ahead,
and adding more cars for the next
terminal.
train
eight hours
in recent
problems.- With diminishing traf¬
railroads had
to become more efficient.
Ways
fic and'revenues, the
and means had to be found to im¬
it
cases
In- many
operation.
the
prove
not
was
a
question
of
dividends, but one of survival,
Approximately 30% of all./ rail¬
road mileage was in bankruptcy.
;
During
become
times
a
good
had
Competition
lessons,,.
many,
up
strenuous
these
railroads had learned
the
Railroads
keener.
wokt
to the fact that they no longer
had
a
monopoly on transportation
what they
They learned lessons from
other industries—methods, r short¬
cuts and improvements—and they
[earned
about
more
merchandis¬
of putting
othei' gram
houses in
their
:
terms
of
number
of
years'
out¬
longer the war lasts, on the other
backlogs
hand,
electric
refrigerators,
2Y2; washing machines, 2Vfe; iron¬
ing machines and vacuum clean¬
ers, 3. These are theoretical esti¬
will become because of the depre¬
the pre-war cor¬
special discussion because of the
progress which leading manufac¬
turers have made in planning for
greatly improved models after the
2;
tubes,
mates
based
relation
on
fluctuations
between
in
the
spendable
national
income
and sales of the various appli¬
ances.
The
backlogs that will
actually exist at the end of the war
may
be greater or less than these
amounts
trend
If,
of
the
developments.
depending
post-war
for example,
upon
there should be
unemployment and a serious de¬
the
these
put at the peak rate of 1941: radio
larger
In
the
department,
trackmen ride to and from work
ciation and obsolescence of exist¬
ing models.
given
The wartime advance in the
science
of
electronics
alone, the
study concludes, will bring about
rapid obsolescence of
of
equipment
processes.
lieved,
Active Trading Markets in
Preferred Stocks
.
•
-
The obsolescence factor is
war.
ton-miles, and in the first i
needed.:
/;.....
•;./ •
it was 1,088.
each
car
is
Many of the transportation de¬
doing
mands made in this war were unmore than twice the work per day
than it did in 1918.
The roads were
;
> thpught of before.
with
new
These figures sound almost fan¬ confronted
problems,
Among them
tastic, but- they do not tell the new emergencies.
whole
story.
There are intan- were the. handling of oil and
gibles in the picture that are im¬ petroleum products to the east
means
used
This
will
industrial
in
factor,
tend
to
types
some
it
is be¬
offset
Wisconsin Securities!
any
.
portant.
we
were
In the First World.War. coast
in. the hands of the gov¬
ernment with considerable
cal
consequences, -
were
politi¬
Railroad
having
men
depressed, by
the
properties taken over. Inadequate
planning,. poor organization," and
indiscriminate
use
of
.
shipping
priorities resulted in excessive
accumulation of cars at terminals,
particularly
at • the '! seabo.atd:
Nothing is so depressing 'Jo !a.
group of men as to feeP that their
efforts are futile, that mfldehceS
Common Stocks
Lake Superior District Power Co.
Chain Belt Co.
Wisconsin Electric Power Co.
Kearney & Trecker Corp.
overestimate of
"deferred demand
that may have arisen
from-
a
Wisconsin Michigan Power Co.
LeRoi Company
Wisconsin Power & Light Co.
Wisconsin Bankshares
"Electrical
Koehring Co.
,
obtained
*
•
V
THE WISCONSIN COMPANY
Telephone Daly 0525
MILWAUKEE
Bell Teletype MI 291
1, wise.
Appliances,may * be
-from
the
tankers
the
taken out of
service; the huge vol¬
movements; the in¬
passenger travel- brought
about by the rationing of gasoline;
the
elimination
of
intercoastal
ume
of troop
creased
boats
made
railroads
it
to
nental traffic.
gency
necessary
carry
for the
all transconti¬
All of these emer¬
jobs have been
solved by
the railroads.
) ' What
are
gasoline cars instead of the old
"Armstrong" .■ hand .cars.
The
greater part of heavy track, work
is done with modern equipment.
is almost entirely done
Ditching
by machine; rail is laid with der¬
ricks and cranes instead of the
method;, ballast
is
driven traveling
called a
"mole";
hand
old
cleaned by a gas
device
screen
ties
tamped with pneumatic
are
tools; bolts are tightened by power
.;%/•
wrenches.
In
the
parts
of the
railroad
taken from the store¬
"
traveling • gasoline
with
driven
Tarrytown
ating stops for water and fuel; The
treatment of water was in its in¬
at a cost of
fancy
$1
per copy;
price to
public lib^anes and non-profit insitutions fifty cents a- copy.
25
years
ago.
It has now
developed to the extent that loco¬
motive
boilers
last
four
or
five
them in exactly the way
on
assembled
are
in an
automobile plant.
v.
>."
In. the locomotive shops similar
Specialized
used.
are
cranes
ma¬
chinery has been installed for
every
operation where there is
enough work to warrant it.
A
typical example is a flue shop
the
where
old
bbiler.. tubes
are
thoroughly cleaned inside- and out,
the ends cut: ,off and/a new end
welded on and then cut to length.
Throughout
the
entire.; operation
by hand.
has in¬
the flue is never lifted,
The
of alloy steels
use
creased
years,
and
greatly in the past 25
resulting in better design
better
materials, * thereby
.
making it possible for locomotives
to run longer between shoppings.
Roller
bearings
on
locomotives
are
having
their
in
effect
proved mileage as well.
im¬
,
.
Improved signal systems greatly
the
expedite
so
that
no
operation
of trains
traih orders are needed.
applies to single track as well
multiple tracks. Trains are dis¬
This
as
patched by telephone rather than
by telegraph.
Messages between
important terminals are sent by
teletype.
A record of all car
movements is sent by teletype to
office,, then printed on
such a way that any
these sheets are
central
in
sheets
where
Press, Box 157, Tarrytown,. N, Y:,
work
having
and
periodically
weight of rail is heavier, more use
has been made of stone for ballast,
tenders thus* rumin¬
In the heavy repair
shops, cars are handled on a pro¬
duction
line,
the cars
moving
Improvements that have increased
the efficiency of operations? The
larger
all
eliminating
cranes,
heavy lifting.
office
have
repair yards, heavy
car
are
house
a
some
way
on
were
too! drainage has been improved, auto¬
matic signals are almost univer¬
sally employed, locomotives are
more
powerful and faster and
optimistic view of- post-war pur¬
chasing power.
'.
\ ] \j;
Copies of the* study, entitled
Wisconsin Gas & Electric (Do.
when
effect.
into
methods
975
nine months of 1943
That
or more.
maintenance, of
that they had to earn
got.
The deferred demand for radio sets,
was
the
years,
automobiles
In
that
However,
solid trains have
been made up and run on definite
schedules over the length of the
to
done
77%;
meant
This
in each yard from six
was
.
the first nine:
of 1943, freight business came, we were much better pre¬
increased; a • further •• 16,7% 1 pared than 25 .years previously.
compared with the same period ir Long before Pearl Harbor, the
1942, and passenger business has railroads had entered upon a pro¬
increased
out the
destined for that terminal or
the
to
has
further
cutting
yard
the
and
agency,
order/: repairing cars that were
brought about by the lack words, freight business is'; now out of
condition, repairing loco¬
nearly 75% above 1918, and pas¬
of any new production since June, 1942, and the continued rise in
some
of which hadn't
senger business .more than 100%; motives,
the national income and national savings, now amounts to a total
been operated for years, getting
above 1918, in spite of a substan¬
retail value of nearly IV2 billion dollars, equivalent to about three
;hem ready for the transportation
tial decline in equipment,"
years' production at the rate of 1941 output, according to a study of
The figure I think' interesting job that was sure to come. Con¬
the investment position of the electrical appliance industry just com¬
siderable new equipment was pur¬
to keep in mind is that in the:
pleted by the research department^
chased following the outbreak of
of E1; W. Axe & Co., Inc. The esti¬ cline in purchasing power after First World War, each car, on ar
the
war
in
Europe.
Purchases
mate ' deferred demand for other the war, these backlogs might not average, handled 518 ton-miles were
light during the long de¬
leading appliances is as follows in be fully effective for a while. The per car per day; in 1942 the figure
pression
because
none
were
i.
another,
division terminal to
one
months
Deferred Demand For Electrical
being
;:
'
establishment of Shipper Advisory
So when the Second World War
step further, for
gines cover three or four op¬
erating divisions before turning
around.
Passenger engines run
railroad, stopping only at division
points to change crews and; for
Boards for closer cooperation be¬ inspection or» trains and servicing
tween
shippers
and . railroads. of; the locomotives. The engines
andcabooses run through—only
Good
results
came
from these
the crews change.
In place of
moves. •
// ;;./
taking five or more days to go
During .the remainder of the from
Chicago to New York, prac¬
20's, vast improvements in facili¬
tically all traffic makes the dis~<
ties and equipment were made,
tance by the third morning.
*
and no
great ■ trouble was ex¬
Each
department
has > made
perienced in those years. The de¬
pression in the 30's brought new great progress in putting modern
coordinating
ing their product; more l about
: > ,
To go: meeting competition.
increase of 25% over 1918.
a
back
with
.
later, after a car
A little
operating division, then
to the home terminal,
a change of engines,
both passenger and freight, every
100 or 150 miles. Now freight enr
one
turn
necessitating
control
said that
repair work.
War
One,
it
was
customary for locomotives to run
over
beyond their control are handicapping their best endeavors.
The railroads came out of gov¬
ernment
constant
World
In
(Continued from first page)
,
structed
long without renewal and
as
without
to
which
air-ihailed
a
tell
accurately
can
loaded
car
was
on
the
preceding day. This greatly ex¬
pedites the tracing of cars and
gives current information regard¬
ing, car locations.
In the accounting and car rec¬
ord offices, cards are punched and
much of the accounting is done on
electric accounting machines in¬
-
stead of by the older hand method.
Railroads
signed
and
in
for
this
are
mass
war
definitely
de¬
transportation,
they
are
being
Volume
used in
THE COMMERCIAL: & FINANCIAL CHRONICLE
Number 4246
159
such
a
way
to. make
as
them fully efficient. For the first
time in their history, cars are be¬
ing loaded to their capacity, this
being made possible by a directive
from
bf
Mr.
Defense
savings.
Office
the
of
Eastman
The
tre¬
Transportation.
car-days
are
in
mendous, As a matter of fact, the
war
load could not have been
handled if each
had not been
car
fully loaded.
You
will
that
note
im¬
these
provements have been largely of a
material
nature,
with
along
but
this there: has been a tremendous
improvement
in
methods. and
training.
Frankly, 25 years ago
supervisory forces were left to
their own devices; some men pro¬
gressed and others were satisfied
with what they knew. It was un¬
usual for any particular attention
to be given, to the training and
education
of
foremen
or
super¬
Each officer had his
visors.
methods.
In
own
■■
recent
years
this has
been
superseded by systematized "sure¬
fire"
conference
training.
For
many years, railroads were be¬
times and behind other
hind the
industries in the training of fore¬
and supervisors, and a large
men
part of the criticism of railroads
t h e i r
managements - was
and
predicated on evidence of this
lack of training. It is not,universal
now, but the development
and methods has had an
of men
added
rectify this and put an end to the
taxes'we are now paying on re¬
serves
set aside to pay for this
deferred maintenance. Instead of
being treated as an expenses this
deferred maintenance is unfairly
individually by most railroads.
Commission. These courses
as J I T, Job Instructor
n g
or the "sure-fire"
method of teaching.
Supervisors
are
,
trained to teach J
M T, Job
Methods
Training, which shows
them how to plan their
work.
These courses have been invalu¬
able and
are
being received with
they
intense enthusiasm wherever
are properly taught.
Incidentally,
they will be useful to any busi¬
fulness
Railroads
their own way,
they own and maintain their own
with the railroads in
transportation at low cost.
pete
of
vitality and
resource¬
enter¬
American
our
prise system. Most communities
today Would not be enjoying the
pay
of
strictly war traffic,
and the reinauguration of coastal
and intercoastal boat lines, rail¬
road
will
revenues
tially lower.
railroad
For
a
substan¬
be
time at least,
expenses will have the
of increased rates of pay
burden
brought "about by wartime infla¬
tion in costs of living and by in¬
creased* material costs, of which
the; cost of coal is the largest.
What
revenues? '' When
about
railroads;
first
strictly
were
were
and
from
the
entire
cailroad
revenue
the
passenger
will
receive
in
the rail¬
the
future
production in the nation.
times
of
In
matter
depression,
•
was
revenue
about
21% of railroad gross in¬
come in the United States.
This
dropped to 10.4% in 1939 but
now
in'wartime it is up to about 13%.
About the turn of the century
electric lines took part of the short
haul traffic.: Some roads invested
industry represent a vast
potential threat to free enterprise.
Proper disposition of these gov¬
doing anything for the old
firm, but will raise great funds
of money and secure concessions
for a new enterprise. •• Railroads
ask only for fair treatment in the
of
regulation
taxes,
ernment possessions is one of the,
great postwar problems.
Most important of all the prob¬
lems, however, is that of employ¬
ment.
Everyone is agreed that,
and
railroad
subsidies.
After all, the
public
revenues will be
down; if business
which must pay for the railroad
is good, rail revenues will be ade¬
services
The * railroads themselves
do not produce—their job is to
carry
the
goods
produced
by
quate.
farms
•
to
But
Z
believed in the future of America.
risk
investigate
over
as
in
railroads,
the
serve
When the
nation
mighty monu¬
a
employment
is
not
war.
enough,
ends,
w?.r
(Continued
:
on
we
are 50-
181)
page
enlarged to include jurisdic-
ion
The
ability to
today, stand
and adjust rate charges,; and from
;ime to time their powers have
been
capital.
their
unemploy¬
no mass
aftermath of the
an
as
There must be productive em¬
ployment, not boondoggling.
If
those employed do not produce
goods, or services that other peo¬
ple want, and are willing and able
to buy,
their employment con¬
tributes
nothing
to
economic
stability.
'■■/V'1Zv;/"
As the country grew, the railroads
were developed apace by private
the. Interstate. Commerce Commis¬
/
ment
prise in this country. They were
built by rugged individualists who
about
created
just,:as much
fair,,play as the
Railroads were, % ptoneet :enter¬
and Industries.
.was
there must be
be
railroads themselves. invtoto
; Some people think the railroads
have Oversold the public on their
troubles. ; We' are • forever talking
sion
should
interested in this
taxes,. Competition
and
built
the
political interference with mana¬
passenger
gerial j udgment. Many years ago
transportation of
passengers. Gradually the hauling
if freight became more and more
prominent. In 1920, which was the
peak year of' passenger travel,
came
roads
revenue
vate
in
of the present
The amount of
government into the field of pri¬
Commerce is not much interested
mass
will, rise and fall with the amount
.rains
known
ment to the
that of the railroads.
Obviously,
w it h
intensified
competition from highway trans¬
portation, air; lines, waterways
and "pipelines, and with- the loss
application of the principles put
out by the Training Within In¬
dustry branch of the War Man¬
are
interest fully as mu,ch as it is to
do
•
,
trains
power
be
roadbeds, pay enormous
taxes, benefits of the American way of
anp are'not subsidized in any way. life had it not been for the rail¬
regarded as a profit by the gov¬ this traffic as it would be to use There are certain bills pending road service that makes it pos¬
ernment,
upon
which
income a 29-ton truck to deliver small in Congress now calling for sub¬ sible.
taxes
and
excess
profits taxes packages from Macy's store or to sidies for air transportation, and
The railroads are temporarily
must be paid. In order to save a use a Fifth Avenue double-decker for the development of airfields under
government control, and
at
government
expense.
Good there are undoubtedly forces at
dollar, the railroads that are sub¬ bus as a taxicab.
It is my opinion that the future roads are being continually built work that would like to socialize
ject to excess profits taxes must,
earn $5.26 upon which they must of the railroads is bound up in the at public expense for the benefit all
industry, and would prefer to
of truckers.
pay a tax of $4.26 in "order to have mass transportation field, hand¬
Super-highways are have the government keep control
the dollar left to do the work after
ling heavy commodities, in fully worn out more by heavy commer¬ of the railroads. It is estimated
che war which they would do now loaded cars, in heavy
trains, long cial trucks than they are by th^t the federal government now
if they could get the labor, and distances:' It Is mass
passenger vehicles, The railroads owns one-fifth
transporta¬
of the area of the
material. "
V •/
tion at its best.
There is room are somewhat in the position of United
States, and has over 2,600
an old established
The entire postwar situation is for all forms of
business in a
transportation.
plants in which are invested over
being studied by a special re¬ The" airlines will get their share, small town—they are expected to 15,000,000,000 of dollars.
These
search department of the Associa¬ and trucks and busses will
keep going and are taken for huge wartime excursions of the
get
tion of American Railroads, and
theirs, but hone of them can com¬ granted. The local Chamber "of
impetus during this war, by the
Train i
handled, by trucks Trucks can
a better job over short dis¬
tances, particularly overnight des¬
tinations, " than the railroads, can.
It is just * as foolish for railroads
to cbmpete in rates for some of
173
matters.
various
other
railroad
They have done
a good
job in spite of considerable polti-
cal
interference
:
from
Harris Trust and Savings
pressure
]
groups.
Wage
levels
are
de:ermincd almost ; exclusively
by
Organized
N. W. Harris & Co,
as
HARRIS
TRUST
Bank
1882—Incorporated 1907
BUILDING,
CHICAGO
.
f
the administration in Washington,
and the. prices we pay for coal
and other supplies are determined
Statement of Condition
heavily in them. They are about'
by governmental agencies. During
though not engaged in all gone now.
this war, other industries have
war' production.
In the.20's came the extension
■ • ■
had a taste of the same medicine
To sum up: While the railroads of good roads and the phenomenal
—the only difference is that we
did rather poorly during the First growth of the automobile traffic.
are
more
used to it.
In fact, a
World War, partly due to anti¬ Local passenger trains became un¬
good deal of. the regulation of
quated methods and partly due to necessary and such service has
industry :by governmental agen¬
being operated by the government, largely been discontinued. Busses
cies ' has resulted from the fact
the
railroads
have
progressed perform a real function because
that the Constitution of the United
since
then
through their own ;hey go into the center of towns
States gives Congress the right to
initiative, and the realization that and give more convenient service
:egulate interstate commerce. This
a
rejuvenation was needed. Re¬ for many short distances than a
has been construed to give Con¬
sults
obtained during this war railroad possibly can.
;V.
gress the right to regulate almost
emergency have been due in large
L What about air travel?
There
anything.;
; to
;
measure to the use of modern ap¬
v
ness, even
December 31,
.
.
.
Resources
will,
be
more
and
more
of
Eastman, the Association of
Railroads, the ' Inter¬
state 1 Commerce Commission, and
their, families have left us, and
gasoline and tires and automobiles
are again available, railroad pas¬
senger traffic will become normal
Mr.
American
by the enthusiasm of the railroad
cooperation
has been received from shippers,
and, railroads have' helped each
workers;. ' Unlimited5
mofe: than
othfer
ever
before.
What are' the postwar
for
railroads?
Just
as
was
apprehension at the start of the
that
war
the
would
railroads
wartime load of armed forces and
again,
somewhere
near
levels, fJ Remember
that
prewar
; many
people have had their first train
ride these past two years and are
prospects
there
always prefer railroads. After the
break down under the heavy war
pleased with the comfort and ab
sence
of
dirt
air-conditioned
cars
and
and
cars.
trains
noise
in
the
Furthermore,
will
continue
to
improve in the postwar period,<
..Railroads do not ask for special
,
lower
so
there
peace
is
on
„
.Zto J
.
540,000.00
Acceptances
__
...
tovZ
148,300.60
.
Accrued Interest and Other Resources
in spite of the fact
have doubled, and the
price, of materials has increased
greatly. The average revenue per
1,540,478.51
.$476,111,483:58:
ton mile in. 1942 was 0.932 cents—
than
cent for
one
Liabilities
'
'
hauling a
of
freight one mile.
It is
probably about the s^mo; for 1943
although the. exact figures are not
yet available. These freight rates
Capital—6,000,000.00
Surplus...
,
comes
...
12,000,000.00
Undivided Profits..
fear now that
Regarding traffic other than are lower than in
any
other
the railroads passenger, it is likely that cargo
country
in
the
world except
will be at the mercy of competing
planes will carry an increased
Japan, a nation, of cheap labor
forms of transportation. Note that amount
of
mail
and
express. whose standard of
living does not
railroad
security
prices
drop There are- always
factory break
even remotely approach our own.
whenever the market gets one of
downs and other emergencies that
In Great Britain, the average pre¬
its-.''peace scares."
demand
expedited
service.
In
war freight rate was 2.4 cents, in
In preparation for the postwar
wartime, emergencies are more
period, the railroads have wisely numerous than in peacetime. In Germany 2.2 cents, in France 1.9
pents.
to.-.:;:■"•:
followed a definite policy of debt the
long run, industrial; manage^
maintenance of this apreduction, thereby reducing fixed ment-always figures out ways of
charges and increasing working saving transportation
charges on pjppxlpiiate scale of freight rates
capital. This strengthening of rail the goods it ships. New- factories i^:.q|appajor interest to shippers
load,
when
Liability
chat wages
ton
2,277,408.36
$ 20,277,408.36
.
for
Reserves
Contingencies,
Taxes,
Interest, Etc.
8,399,545.35
Acceptances and Letters of Credit...
Demand
Time
.t
148,300.60
Deposits _.$421,248,687.90 \
Deposits-...-
26,037,541.37
-
447,286,229.27
,,
credit will enable railroads to in¬
expenditures for additions
betterments, without which
crease
and
progress
would cease.
Because
of
~
shortages
of
men
and materials, and the increased
wear and tear due to heavy usage,
the
railroads
deferred
have
considerable
maintenance
which
the
ICC* permits us to charge in our
income, account; but which the
Bureau of Internal Revenue* does
not
at
present recognize for tax
or
branch plants
located, prii
minimize
f r eight
are
marily
to
charges. Over the years, freight
moves
by the channel that, ■pyp*
the
'way? in which this cost
$68,049,800
can
*
cone
to
the
railroads
on
account
of
shortages in the trucking, in
dustry. It is reasonable to expect
that
the trend
will
be
S.
Government
obligations: and
$301,000
of
caJTs': to(f their full capacity.
We
are
;
U.
164.59 of United States Government Deposits and $22,170,221.44
the service.
During the war some traffic
formerly handled by trucks has
of
State
hope to find some way to do this,
even after wartime requirements
dependability of
.__:.__$476, 111,483.58
beukepf;upw jts to continue to load
duces the greatest economy,, with
due regard for
who
lifted.
are
interested
in
this
to
make
it
a
point to talk it over with your
traffic people, with the hope that
they
will
posals are
railroads.
of
'
and
Trust
Municipal Securities are pledged to secure $43,515,-
Deposits,
and
to
qualify
for
fiduciary
powers,
Perhaps those of you ]
industrialists are enough
cooperative. and
suitable pro¬
made to them by the
be
-
the'other ■sympathetic., when '
We are hopeful that the way, after the .war, and it is
pending tax bill in Congress will proper that certain traffic should
purposes.
Total
an^iCqqsum^rs everywhere. One
of
•:
36,786,897.06
ago,
years
less
28,9.05,765.01
—...
Loans and Discounts.L., 105,572,143.76
and Letters of Credit..
job in keeping
Freight rates are
than were were 25
today
Municipal Securities.-4ZZ:-
Customers'
The railroads have done
down.
costs,
Banks—.$109,117,270.00
Federal Reserve Bank Stock.
outstanding
an
93,229,220.91
100,271,407,73
Other Bonds and Securities.
consideration, but there are some
things about the railroad industry
in which you
are
greatly con¬
cerned.
Treasury Bills and Certificates.
State and
ito-
iong distance and rush travel par¬
ticularly. But some people will
on
U. S. Government Bonds and Notes..
,
pliances and methods, unhindered
by government management, but
helped by the Director of the
Office of Defense Transportation,
Hand and Due from
Cash
U. S.
.
,
1943
Frankly, itois to your
[.
!
Member
of Federal Deposit Insurance Corporation
Thursday, January 13, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
174
Repeal Excess Profits Tax To Gut Restrictive
Royal Bank of Scotland
Insurance & Bank Stocks
Bought
ANALYZED
—
Sold
—
REVIEWED
-
5
Changes in the tax structure "designed to reduce to a minimum
the restrictive effects of taxation on business and investment expan¬
COMPARED
-
to Dealers & Brokers
Special Bulletin and Booklet Service
Trading daily 7 a. m. to
Incorporated by Royal Charter 1727
Quoted
study published by the Brookings Institution,
Jan. 9.
The study, issued under the
title of "Post-War Tax Policy and Business Expansion" was prepared
sion"
(P. C. T.)
p, m.
by Lewis H. Kimmel, and it is pointed out by
West 7th St., Los Angeles
210
New York
:
,
PRIVATE WIRES
San Francisco
L.
A.
270
—
;
.
,,
,
.
,
.
■:
,
,
Bank and Insurance Slocks:
S West Smilhfield, E. C. I
*
corporate.
this tax
49
Charing Cross, S. W. /
Burlington Gardens, W. I
64 New Bond Street, W. 1
TOTAL
special Senate Committee on The1 corporate income tax levied
Economic Policy/ and over and above this normal tax
Planning, under the chairmanship should be held to a low or moder¬
Senator Walter
of
should
F. George.
that
understood
be
rate—perhaps in the range of
It
///;. j;v
the 5% to
conclusions and recommendations
12, 13, and 19, when
here submitted do not necessarily
should
reports to stockholders will be presented. Meanwhile, year-end bal¬
ance sheets have been released, which enable a comparison to be made
reflect the views of the committee
companies are scheduled for Jan. 11,
permit the computation of
items with a year ago, and also
earnings" for the year. ^
of important
"indicated
general, deposits are higherf-—/'■/.'.
Dec. 31, 1942, investments
in Government securities have in¬
'
'
'
■
■
ment
those
over
parative data
City's
Banks
Inquiries invited in all
Unlisted Issues
accompanying tabulations." Table I
shows
total deposits
and total
earning assets.'
will
It
:
''/■"/
that
observed
be
Laird, Bissell & Meeds
:
although total deposits for the 18
hanks are higher by more than
pne billion dollars, or 4.8%, nev¬
ertheless four banks show a mod¬
Stock
York
New
Members
Exchange
BROADWAY, NEW YORK 5, N. Y
120
L.
A.
1-1248-49 V
Gibbs, Manager Trading Department)
Teletype—NY
To all of these he
ex¬
Chase
by
released
figures
ing
prior to its annual meeting show
net operating profits of $2.33 and
net security profits of $1, com¬
in¬
or
10.7%, all banks reporting higher
his sincere appreciation.
cooperating committee of the
Institution
consisted :• of
Meyer
/:/' ///•/
.
their
banks
for 1943
values
surplus and/or undivided profits
-
net
this time to
operating earnings and
net
security profits,
except in
share
all
in
flected
It is not possible at
show
in
accounts
pared with Dec. 31, 1942.
of
the
each
is
instances,
values
book
bank
per
Dec.
for
re¬
31.
1943, compared with Dec. 31, 1942,
a
Table II.
in
listed
New
as
been released
Trust, it will be recollected, in¬
ers'
Bank of Manhat¬
meetings.
tan's report, for
shows
$2.01
net
per
operating
share and
of $1.88
profits
per
capital early in
After
shares.
1943,
profits
its
1943,
100,000 new
through the sale of
instance, released
its meeting on Dec. 7,
since
creased
stockholders'
the
of meetings have been held later in
net security
the
share,
report
com¬
month
it
will
somewhat
pared with $1.81 and a net secur¬
the
ity loss of $0.65 in 1942.
be
possible to
fully
on
.operations
of
more
these banks.
Operat¬
TABLE
earnings .and
-Total Deposits-
of
Bgrik
Bank
-
Manhattan____
of
New
Bankers
—Total Earning
Central
Chase
$939,413,000
$915,263,000
12-31-42
$711,127,000
Assets—*1
12-31-43
$762,010,000.
362,733,000
339,806,000
278,565,000
1,135,383,000
r
r_
Bank
Trust
&
1,477,219,000
..1,230,077,000
1,269,085,000
4,375,582,00a
3,422,368,000
"4. The rates for State business
State
State' business
1,153,998,000
935,660,000.
1,003,969,000
Bank
of New
156,823,000
188,417,000
78,390,000
101,806,000
Central
532,799,000
608,118,000
414,384,000
484,091,000
Chase
Guaranty
Irving
89,612,000
928,567,000
2,345,912,000
2,669,677,000
793,498,000
853,230,000
1,042,879,000
X,273,114,000
Guaranty
964,148,000
Trust,,,,
1,322,421,000
1,580,909,000
City__,„_,„_
United States Trust
3,671,306,000
3,833,412,000
2,958,809,000
3,183,692,000
689,208,000
499,230,000
566,235,000
243,399,000
325,344,000
205,377,000
279,219,000
108,662,000
—
Commercial
114,707,000
109,626,000
120,838,000
—
♦Includes
City
—
Bank
investment
sion
on
business
and
$21,236,469,000 $22,251,690,000 $17,209,111,000
$19,050,431,000
Farmers Trust.
'
!, 348.55
'/"■I 46.07
expan¬
♦National
tNew
States
Jlnciudes $2
transfer from
§5.09
2.80
13.51
Commercial
1.28
2.15
3.57
3.34
49.35
94.27,
..
.5.18
1,246.60
323.77
15.42
20.98
7.07
.
106.16
.
21.83
/////
8
and
.
London
.
£3,000,000
/
,
,
Cairo
£3,000,000
/
agency
all
the
Branches
in
principal
Towns in ./'//
'
'•
and
EGYPT
the
.;
SUDAN
NATIONAL BANK
of INDIA. LIMITED
Bankers
In
Uganda
26, Bishopsgate,
London, E. C.
in
Burma;
India,
Ceylon,
Kenya
Colony and Aden and Zanzibar
Subscribed Capital__^.£4,000,000
Capital
Paid-Up
£2,000,000
Fund—.—
Bank
£2,200,000
conducts
Reserve
description
every
of
banking and exchange business
Trusteeships
and
Executorships
also undertaken
Railroad Securities
(Continued from page 165)
exclusive
of
Betterment
Additions
the
Fund
which
is
and
now
depreciation, would be
$855,000 to $4,-
about
650,000.'
In
addition
would
to
the
above there
be
$2,325,000 of sinking
fund moneys to apply to the in¬
come AV2S,
covering the years
1939-1943, inclusive, on the re¬
duced
amount
leave the company
funds to be used
114.58
85.34
5.79
6.14
1,517.50
2.84
3.30
♦*78.83
**87.07
48.30
1,504.78
500,000 shares;
transfer
from
■
1943:
600,OQj? shaves.
reserves.
Hi Includes
of
income
bonds.
Finally, it is possible that these
financial
activities
would
still
retirement.
1.95
tl942:
and
Colony
Office:
Head
Branches
Government
the
to
Kenya
above it is
3.88
36.38
Slncludes
transfer from reserves.
♦'Net operating earnings.
reserves.
,
1
*ling William Street, E. C.
7
4.36
0.73
41.75
46.50
City Bank Farmers Trust.
FUND
0.90
21.28
39.39
33.14
__
CAPITAL
FULLY PAID
RESERVE
Cairo
Office
Register No.
18.04
23.27
84.06
—
Trust
net
7.28
2.04
..
1,220.44
.
National
♦Includes
6.03
245.47
:
—
.
24.42
$5.47
.2.44
;
313.94
Trust
Public
41.23
/,
97.66
——
City
York
2.99
36.88
48.18
—
Trust
Manufacturers
20.70
$1.65
$1.45
358.97
99.15
90.20
1943
1942
05.15
,
21.92
—.
—
Earnings per Share
$25.03
...
235.42
——
.
Trust;
Banks
of EGYPT
covered by
12-31-43
40.23
—/
National
with
arrangements
Head
reduced
12-31-42
—-
—,—
C.
only .if the
.
Book Value Per Share
i
and Trust—
Empire. Trust
E.
Street,
NATIONAL BANK
The
fullest- possible
the
to
33.19
Exchange
Corn
these
y- throughout the v. S. A.
contribution to
be obtained
will
$24.28
—L-.
in
Berkeley Square, W. 1
venturesome
underlying tax structure is placed
on
a
sound basis.
The discrimi¬
/■'/;
!
Threadneedle
29
equities would have a
95.87
National
United
Totals
/:;
.
Continental Bank
First
628,777,000
Trust,—
National
'
■
York
Irving Trust
2,903,794,000
York
public
72,019,000
818,984,000
928,494,000
♦National
New
from
"The maximum
—:
101,955,000
2,698.262,000
'
investors,
to
interested
OFFICES:
LONDON
dividend income and other in¬
;
Chemical
942,359,000
Trust,—__r—-
Manufacturers
rates
ments made after the war.
National
95,455,000
Trusts-.;.
Preferential
laws.
stimulative effect
Hanover
887,300,000
Trust,—
National—
tax
come
/
Trust
Bankers
Empire
on
Bank of Manhattan—
119,438,000
First
the
of this
./ •'
/
service
complete
"5. The tax system
Indicated
'•'/"
banking
travellers
and
most
countries.
be
TABLE II
211,736,000
■
efficient
traders
the
offers
it
criminated
single normal tax, which would reduced
be collected
on
all " taxable in- extent."
.
in
and
eliminated.'-///;y/■;/:/
a
96,760,000
_
should
nation against all equity earnings
position in the income tax which was accentuated by the
structure as a whole.
We favor changes made in 1936 should be
■
With over
Australia,
London,
Overlapping
taxes
its
187,641,000
Exchange
Federal business taxes
as
de-emphasized.
are
its temporary continuance,
during the transition years should
not materially affect business and
investment expansion/ '.
"2. The corporate income tax
should be considered in relation
-National..-,
Corn
should
rates
creased
5%. > The
not
be
in¬
about
of
maximum
tax,
;/ /
of
States
and
excess
repealed after the war.
The investments; a reduction of onethird to one-half—based on the
is not the
decisive factor.
If there is a clear average effective rate—is recom¬
mended for new equity invest¬
and unequivocal policy with re¬
spect to the abandonment
all
Zealand, Fiji, Papua and New Guinea,
be
3,614,427,000
1,199,430,000
branches in
New
Agency
income taxes should be held to a
profits tax should
1,391,012,000
1,537,492,000
The Bank of New South Wales Is the oldest
870
on
effective date of repeal
Continental Bank & Trust
Commercial
//'"/'
excess
Manager
George Street, SYDNEY
and largest bank in Australasia.
profits tax should be
repealed. /// .////■ /■■///
;•//';
The " im¬
revenues.
"1. The
DAVIDSON, K.B.E.,
General
Office:
47
271,430,000
1,594,694,000
4,291,467,000
Hanover
National
Chemical
12-31-43
1,504,658,000
York
Trust
tax
SIR ALFRED
Head
■
value
expansion of
an
8,780,000
Aggregate
Assets
30th
Sept., 1941
L*—__£150,939,354
might be reduced by-, one-,
•
/.;/:/./ /•'//:/;/
"3. The Federal capital stock
tax
and
the
so-called declared
stimulative effect
—should result in
6,150,000
£23,71 MOO ;
tized
half.
changes—because of;;their
on the economy
bined
Liability of Prop.
ment, the minimum period over
which new assets can be amor¬
portance of adequate revenues
to
I
12-31-42
,
Reserve
al¬
has long dis¬
against earnings on
Because of the
position of venture
While a few of .the modifications
capital in the economic structure,
proposed might entail some im¬
equity earnings should be favored
mediate loss of revenues, the com¬
—not
discriminated
against—by
expansion.
investment
£8,780,000
Fund
■
The conclusions of the study are
York
few instances where reports have
prior to stockhold¬
depreciation
1817)
Capital
Reserve
is recommended.
is
equity capital.1
earnings to the recognized throughout this study; fundamental
undistributed
of
1942, also their book
of Dec. 31, 1943, com¬
vs.
as
in¬
some
stances, and through the crediting
earnings"
"indicated
in
surplus
to
serves
18
same
tax
four-
a
(ESTABLISHED
Paid-Up
interest
pared
.
Table II shows for the
BANK OF
plant and equipment. In the
of
stimulating
invest¬
new
,
;
source;
should be permitted
lowances
Jacobstein, James D. Magee, Willard E. Atkins, and myself."
,/"
the
liberal
"More
normal
the
for
at
carry-over
year
with $1.81 and $0.22, re¬ presented in the booklet as 'fol¬
figures,
except
Bank of New spectively,
in
1942.
National lows:
York.
It is significant that the
"The
present tax system has
City Bank, including City Bank
banks in 1943 were more fully
Farmers Trust,: reports net oper¬ been developed for a variety of
invested than in 1942, for their
to
ating profits of $2.44 and security purposes—to i raise revenues,
total earning assets as of Dec. 31,
influence corporate policies,-: and
profits of $0.39, compared with
1943, represented 85.7% of de¬
$2.18 and $0.43 in 1942.
New to bring about a changed dis¬
During the
posits, compared with a ratio of York Trust reports net operating tribution of income.
80.7% on Dec. 31, 1942.
Of total
1930's
the
potential effects of
earnings of $6.51 and net security
earning assets, Government se¬
taxation on investment and em¬
profits; of $0.81 per share on
curities showed the greatest gain,
600,000
shares,
compared
with ployment opportunities were gen¬
having
expanded
by
$1,832,The changes
$-3.06 and $1.26 in 1942 on 500,000 erally overlooked.
191,000, or 15.5%; loans and dis¬ shares.;V
in the tax structure suggested in
;'v,.' '/./■// ■"; • ■ ■,
'
counts increased by $281,552,000,
this study are designed to reduce
The" strengthening of capital
or 7:2%, but State .and municipal
to
a
minimum
the ; restrictive
funds,, through releases from re¬
bonds
and
other
securities de¬
effects of taxation on business and
clined.
of
group
collected
presses
Chemical.
and
Hanover
earning
assets
have
creased
by
$1,841,320,000,
solidated
Australia and New Zealand
percentage
"The two additional
.
Ltd.
/■/,//
NEW SOUTH WALES
' /
points added to the rate for a con¬
The
decline, viz: Bank of Man¬
hattan,
Bank
of
New
York,
Central
sys¬
V
two years.
business practicable
to
relation
in
activity.
erate
Total
comprehensive the next
whole.
as. a
taxation
Telephone: BArclay 7-3500
Bell
here
emphasized
a
,
leading
shown in the two
are
not
the
from
exempt
be
corporations
should be eliminated. /The credit
for
inter-corporate
dividends
should be increased from 85% to
What
modifications
of
the
tax a full 100%.- ;
/•/
."The two-year carry-back and
system would contribute to the
release of economic power and two-year carry-over of operating
the expansion of private enter¬ losses should be continued during
the transition period,
prise? '
/,//
New busi¬
"In
the
preparation
of
this ness should be granted a fourstudy the author has had
the year carry-over, in addition to
benefit of suggestions and criti¬ the two-year carry-back.
A twocisms
from
many
students jof year carry-back would not
be
Com¬
1942.
these points for
on
York
New
of
institutions
of
be
is
It is focused on
the relation of tax policy to in¬
dustrial / expansion and employ-;
ment opportunities.
The; author
considers
the
single " question:
tem
Statistical data
k
capital funds have been
strengthened, and
earnings for
1943
show substantial
improve¬
should
this
/ study of the American tax
r
.
"It
Bank,
manufacturing industries
"New
of its members.
any
that
on
creased,
18
h./.
r',
In
than
or
Deacon's
Glyn Mills & Co.
special corporate income tax for
the first three years and be taxed
at. one-half the regular rate for
Annual stockholders' meetings of
:
and trust
/
Associated Banks:.;
Williams
ate
leading New York City banks
'
ASSETS
£108,171,956
Post-War
pEUSEN?/
E. A. VAN
OFFICES:
Bishopsgale, E. C. 2
the
This Week—Bank Stocks
By
President Harold G,
come, individual
and
On
corporate earnings
conducted), by
the should be collected at the source.
Brookings
Institution.".
Mr. Because of the heavy revenue re¬
Moulton, in his prefatory note re¬ quirements, this normal or stand¬
ard rate would have to be sub¬
garding the present study, says:;
"It represents one phase of the stantially
higher than pre-war
Institution's
collaboration
with normal rates on personal incomes.
280
A.
L.
-
3
being
now
Seattle
Chicago
-
TELETYPE
(
throughout Scotland
LONDON
Institu-f
tion, "is one of a group of in¬
vestigations of post-war problems
CALIFORNIA
OFFICE—Edinburgh
a
Moulton, President of the
BUTLER-HUFF <& CO.
OF
proposed in
are
of Washington, made available
Orders solicited.
Inquiries invited.
HEAD
Branches
On
with additional
in further debt
the
basis'of* the
expected that the
new
junior securities will continue to
a'ttract
a
speculative following
as
the date for consummation of the
plan approaches.
Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4246.
Winthiop W. Aldrich Discusses Our
Financial and Economic Problems
(Continued from first page)
000,000. The total debt, direct and
guaranteed, rose during these two
years from $62,000,000,000 to $170,000,000,000, an increase of $108,000,000,000, or 174%. The increase
in the debt resulted not
the
deficit
in
only from
a rise
from
also
but
balance of the
Treasury and from the financial
requirements
of
Government
/agencies.':
; v / / ■'; A,;..The fiscal problems of war cen¬
the
working
ter, in the main, on the amount
and type of obligations to be sold
and the taxes to be levied in order
to meet the
huge volume of Fed¬
than the country has
known in peacetime.; Unless
much larger
ever
its size is to prove
unsupportable,
must also
the real national income
the
sets
for
stage
same
the
time
post-war
fiscal
problem. This problem is
composed of two elements:
the
ment
about, and of them all a wise tax
policy is perhaps the most impor¬
tant.
It is to this point that I
wish
briefly
tention.'/.":-.''
invite
to
.*
-
at¬
your
-
gain our
ends without inflation the new
level of national income must be
If
First:
to
are
we
production
maintained volume of
and
/
employment.
If
Second:
we
are
to raise the
pre-war
to carry the new
peacetime budgets, tax levies must
be so designed as to maintain and
stimulate the national income, not
restrain it or harass it/• V'.. j.
-/ When at last the budget is bal¬
essential goal of post¬
/ /Third: This means that the tax
system should be fair and equita¬
ble/should be freed of intricate
associated with
one
the
in
Federal
in
with
contrasted
as
increase
and the other with
expenditures
debt,
rise
the
the
the
period,
anced—an
war
money necessary
exceed $250,000,000,000. An¬
nual expenditures, of which in¬
terest costs on the debt will con¬
provide
should
policy—the Federal debt technicalities,
fiscal
may
an
adequate yield, and should main¬
tain and not decrease the
tive
produc¬
of the community.
the accepted canons of
power
These
are
important part, may
taxation. Under stress of war and
$20,000,000,000, or at a
level more than twice as high as the urgent need to raise revenue
that for the fiscal year ended June wherever it might be found, the
30, 1939, the last preceding the taxing authorities have often over¬
stitute
an
stand
at
looked them at
outbreak of war in Europe.
a
cost which could
be borne only
Treasury Policy After The War.
expenditures
the size indicated give rise to
Federal
of
and
debt
earnings
under the' extraor¬
dinary and frequently inflationary
conditions of war finance.
/ : The result is that
have
we
tax
a
known to be
are
highly variable.
Early in the post-war period,
the excess profits tax should be
repealed. It is a heavy brake upon
corporate enterprise, particularly
new enterprise.
The ordinary in¬
tax is
come
much fairer
a
means
Impediments To
Creation
Of
the
in¬
tax, the highly progressive
existing pro¬
visions for treating capital gains
and capital losses have economic
consequences
which can hardly
come
surtax rates and the
fail to affect the general national
the broad
and
income
of
sources
untried, which, if they
fail, will leave us -in worse con¬
dition than before.
If American credit is necessary,
let
provide it of our own voli¬
through
the national and
international ' channels
already
us
and
familiar
ipcome tax
law, legislative requirements
the
taxation
of
gains and; deductions for
have
losses
undergone
con¬
capital
capital
continual
experimentation and change. Prac¬
tically every method has ben used
except
that
employed
under
British1 practice,
where capital
gains and losses are disregarded,
in computing taxable net income,
unless they arise from the ordi¬
nary
business
' / v,:-i■•;;/ • /
payer.
their
In
trade of the tax¬
or
/:/':■;*■/: /'/
"/■//:
influence
upon
the
available supply of venture capi¬
tal, Federal estate and gift taxes
have an economic importance far
greater than that indicated by
the
derived.
revenue
Under exist¬
ing law, estates have to accumu¬
late
large cash and liquid re¬
sources
in
anticipation of tax
to
If
us.
required to
relieve suffering abroad, let us
provide them freely, as we always
have.
If a sound currency is es¬
sential as a guide for all the cur¬
world, it is in our
to provide it through the
power
sound administration of American
national
finance.
we
Portland, Maine, and has repre¬
sentation in many other cities.
Bond & Goodwin has the dis¬
tinction
If
adopt
we
of
being
one
tified
of the few
ever
investment firms
to be iden¬
with
Henry Lord in the
matter of public financing. This
was shortly after the first World
War
when
minority
Ford
acquired
interest
in
the
Company through the ex¬
pedient of a $75,000,000 revolving
credit.
.,.
Another Bond & Goodwin
have
firm
identified
been
for
least ten
at
with
president and the treasurer joined
the organization thirty-four years
ago, and six of the senior officers,
have been with the firm an aver¬
and
of 26
age
years.
des¬
our
NY Reserve Bank Promotes
The
board
Federal
of
directors
Reserve
Bank
Arthur
sales, against 22 cents in 1942.1
Willis from Assistant Vice-Presi¬
announced
promotion
Phelan
Jan.
on'
J.
of
7
Wilson
and
funds
to
pay
Valentine
dents to Vice-Presidents.
At the
announced
Celebrates 50 Years
of
Franklin
ment.
Investment
banking firm
of Bond & Goodwin incorporated,
The
30
Federal
and
63
Street, Boston, Mass.,
Street, New York
Wall
City is now celebrating its fiftieth
Organized in Bos¬
anniversary.
ton
an
the
the
"
■
*1917;
Mr.
Willis
in
as
Relations
•
Jones
of
Manager
appointment
E. Peterson
Bank
Mr.
in
time the directors
same
Bond & Goodwin, Inc.,
joined
Phelan
;;
the
in
Depart¬
bank
1920;
%y/:/•%/:-;
I. B, Smith, formerly Manager
1894,, the firm established of the Bank Relations and Gov-,
office in New York just prior
eminent Check Departments, will
in
first
the
dition
to
it
York
maintains
an
ad¬
In
War.
World
New
and
Bos¬
office
continue
Manager of thb latter
as
in department.
of
business owned by
the decedent.
Normally some in¬
a
good-sized
a very large part of the
to pay the. tax.
:/;/'/■ /%./:,/
population, which is not only dis¬
tressing to the people, but has put
American Currency The World
plement durable and semi-durable an immense, an almost impossible/
/ " /,//;/'<v!
Standard
goods, and corporations may like- burden on the administrative au¬
The formulation and adoption of
•:wise reduce their holdings of the thorities. '-'//■.:.//? ■/.//■'/.:y/ij-/,'/'
a tax program which shall stimu¬
public debt in order to replenish
late and not depress the national
Urgent Need For Tax Revision
(inventories
and
to
rehabilitate
All this adds up to the need of income and sitll be adequate to
and expand their plants. Develop¬
ments of this character would im¬ re-examining the whole tax struc¬ the continuing needs of govern¬
Continental Illinois
of redeemable and coupon
.
ply
shift in debt ownership to
a
Z the commercial banking system,
which in turn would raise difficult
questions of credit control, .-A
Early in the post-war period,
the Treasury doubtless will wish
to fund the floating debt, a com¬
plicated
process
to carry through
long as the post-war shifts in
debt ownership are still going on.
as
of
ture
the
is too
expect that this immense
much to
task
country.
initiated
be
can
through while
But
it
even
is
carried
and
still at war.
consider,
we are
reasonable
now,
even
It
to
the basic principles and
the
of
some
which
details
must, for the good of the country,
govern future Federal tax policy.
It
is
generally, agreed
that
if
stand
ment
stone of
bility.
ures
at
the
very
floating, debt,
fore the
debt
as
a
star
to maintain in time of peace
the
high level of employment and
business activity reached during
the war will produce only
the
make-believe of
a
itself will
whole reaches
tax
activity and the formation and in¬
will
stance
peak.
The
system is to stimulate business
of Condition, December 31,1943
false and fleet-*
in danger, and na¬
be
must take account of the fact that
life
income taxes paid in the first in¬
be
seek, as soon as practicable,
its
short-term
debt
reduce
of
by
venture
capital,
corporations
it
ulti¬
are
of the American
remains as the one firm
stability
currency
vestment
itself
foundation
of
on
the
resources
world can
point, I be¬
been least con¬
post-war
rebuilt.
United States Government Obligations,"
-
1,402,546,404.49
Direct and Fully Guaranteed
Other Bonds and Securities
Loans and Discounts
This is
lieve, which has
a
mately borne by individual share¬
sidered in the long and often puz¬
through the issue of as many long-:
term securities as investors are
holders
.
—
.
63,369,056.48
..'.,
363,163,483.71
..........
3,600,000.00
Stock in Federal Reserve Bank.......
income received by individuals, as
is done now, is inequitable double
have
taxation; and it further effectively
two plans ctre in¬
at first glahce per¬
suasive.
But they are both open
to the basic objection that they
Customers' Liability
on
;
Acceptances
-
A second group
even
the public
°of
taxes
balanced
has to do with the type
to
the
meet
of problems of
immediate concern to
more
be levied
enormous
in order to
needs
of
a
budget, including inter¬
Total Fed¬
the
dividends.
To tax
discourages
be
changed
ably
investment
as
stockholder
problems of the post-war period
are not to become unmanageable.
Tax
Policy And The National
Now,
that
there
must
be
is
one
point here
The
clearly made.
budget is bound to be very
large,
in
stock.
possible to
soon as
by
come
on
giving
a
tax the
income
The
the
credit
individual
for
the
in¬
corporation has paid
distributed to him.
whole
structure
of
corpo¬
rate taxation requires careful and
detailed study in order to evolve
that solution which will
to
the
maximum
redound
functioning
of
the
economy.
Present provisions
in Federal corporate tax laws al¬
lowing operating losses to be
ried
forward
or
backward
car¬
two
are
highly desirable and
might be liberalized further. They
remove an important deterrent to
years
Income
again dividend
eliminate this bad feature, prefer¬
expenditures will depend on
many contingencies, including the
level
of
interest
rates
and of
prices, the requirements of the
Army and Navy, and the attitude
of the public towards the need of
thrift in government.
Obviously,
strict economy in Federal expen¬
ditures is essential if the fiscal
decreased
of
The corporate tax structure should
est costs on the debt.
eral
form
exchange stabilization
that
been
put: forward
from
Britain and from
our
own
Treas¬
These
genious and
ury.
rovide
new
and
elaborate
mechanisms, which, to be effec¬
tive/will require further mecha¬
nisms and controls, each designed
to patch up the other. And what
p
is
still
more
serious
the
from
American
point of view,
up
an " international
nominally charged with
of advising on national
each sets
authority
the duty
economic
policies, and of assessing penalties
if the advice so given is not fol¬
11,400,000.00
Banking I louse
lowed.
Neither
course
'
.
plan
\
to
have
been
new
liabilities
$2,173,955,738.40
Deposits....................
Acceptances...
293,322.56
i......:.../....;..
Reserve for Taxes,
Interest and Expenses.
9,742,995.61'
,
18,105,492.91
Reserve for Contingencies......,,....,...,
Income Collected but Not Earned.........
191,776.94
<
60,000,000.00
Capital Stock.....,.............,.........,
Surplus...../. .V
•
•
•....
Undivided Profits...,;,..
/.
-
...........
are
60,000,000.00
10,406,373.42
$2,332,695,699.84
United State« Government
at
$446,503,31**.09
are
obligations and other securities carried
pledged
to secure
required
public and trust deposits
or
permitted by law
.
In the
is final.
of discussion both
derstood
$2,332,695,699.84
and for other purposes as
un¬
modified,
though to what extent and in what
enterprises that manner have not been announced.
likely to suffer losses during Yet the opinion remains, which I
investment in
are
for
265,543.16
5,401,213.79
Income Accrued but Not Collected...
zling discussions of the two plans
in
482,949,998.21
S
Cash and Due from Banks..........
which the economic
ready to absorb.
!
Statement
ing prosperity. Even our currency
large
to
OF CHICAGO
even
No treasury with a
floating debt can consider
in a satisfactory position,
and no doubt our own Treasury
its
and
Without it all other meas¬
though the tax system is to be fair and tional or international devices,
narrowly defined to include only equitable, its burdens must be however cleverly designed to ac¬
Treasury bills and certificates of gauged to the capacity to pay of complish the stabilization of cur¬
indebtedness1, already comes to a individual taxpayers, for in the rencies and foreign exchanges,
will prove illusory to us and insizable amount ($36,000,000,000), final
analysis the individual citi¬
-effective for other nations as well.
and may attain higher levels be¬ zen bears all tax burdens.
If the
The
National Bank/ //-
corner¬
economic
American
in
Mr.
and Mr. Peterson
1917,
1919.
at
transfer
terest in the business must be sold
the
the
Jones,
Moreover, it is practically impos¬
sible today to accumulate in an
on
New
nonrecurring) from securities
ton,
tax
the
of
of
York
mal economic flow of the country
sufficient
the
The
years.
against $1.81 in 1942. Additional
earnings of $1 a share (largely
to
the
dis¬
tinction is that all senior officers
shall at least
we
are,
tiny will remain in our own hands.
[Net current operating earnings
of the Chase National Bank, Mr,
Aldrich said, were $2.33 a share,
levies, the effect of which is to
take large funds out of the nor¬
estate
the
Ford
Motor
are
rencies in the
these three aims
cerning
ma¬
of methods
use
hitherto
know where
their holdings
obliga¬
tions in order to replace or sup¬
tery to
the
tion of the individual
death
viduals may reduce
cumbersome
in
chinery and
employment. Ever since the adop¬
problems. The close of system of appalling complexity.
the war may witness significant Federal individual income taxes
shifts in debt ownership.
Indi¬ have become an inscrutable mys¬
numerous
consist
not
American funds
of the personal
case
expressed at greater length
elsewhere, that the remedy for
post-war economic distress does
tested
Capital
In
have
tion
of raising needed revenue,
peacetime. There are
influences which govern¬
can exert to bring that end
expenditures. The manner in real, not false. That is to say, it
these problems are dealt must be attained hot through a
-with not only influence economic high and . rising level of prices,
and financial developments during but through a high and steadily
itself but at the
whose
unknown in
many
which
war
.
level hitherto
be maintained on a
eral
the
the early yeapg of their existence
and
in
established
industries
175
Memktr Ftdtraf Deposit Insuranct Corporation
'
/
176
'Thursday, January 13,T944
FINANCIAL CHRONICLE
THE COMMERCIAL &
due
Investment Trusts
Ire Investment Trusts
,
:
.
1943 Growth
and Performance
'
; ;
'
-Asleep?
might
industries in this country is the business
One of the successful
could
It
fluctuations
only
700 shares would be called.
or
be
possible that
the
on
additional Straddles sold,
By HERBERT FILER*
•
market
to
600
the Puts
that is, the
be
exercised,
have 600 shares Put to
Trust may
There are perhaps many reasons for them, which will leave them with
The year just ended was marked by exceptional growth and ex¬
cellent performance in the investment company field. Here are just such success but one reason, I believe, is the ability of the insur¬ approximately the original amount
ance companies to have a
continuous flow of premiums coming to of stock plus the $5,200 premiums
a fewT examples of what investment company managements accom¬
them.
If these companies are called on to settle a claim the money received.
A unit of stock is an
plished in the handling of their stockholders' funds during 1943.
General investors Trust, sponsored by A. W. Smith & Co., Inc., must come from their assets, which assets are continually replenished investment and in my estimation
should be made to work as often
registered a net gain in liquidating value per share equal to 26.98%, by the flow of premiums. Never-^
as
compared with a net gain of <•>
—
" the less a claim is an actual loss to protect commitments. It might as it can to increase safe return.
be
of interest to the
potential The sale of
and there is no way of making up
13.8% for the Dow-Jones Indus¬
Options against a
of Options
such a loss except by more and seller
why and by Trust
trial Average. Dividends paid by
portfolio accomplishes this
whom these contracts are bought, end.
more premiums.
General Investors Trust out of net
"V; V'.:-V:
v
and therefore the following illus¬
The Investments Trusts of this
investment
income
during the
At this point I would like to
trations are in order: John Smith
country have the wherewithal to
year totaled 300 and represented
qualify a previous statement and
owns 100 shares of Steel which he
do a business similar to the gen¬
a current return of 7%
based on
compare the business of the gen¬
bought at 40.
It is now selling at
eral ' insurance
the
business,
on
a
year-end offering price of
eral insurance company with the
57. and he has use for cash in his
much better basis, with less''ac¬
.the shares.
-.'■■■ - ■ ■.
■.
business
of selling
Option con¬
business but hesitates to sell his
tual
risk.
In the Lord, Abbett group of
They seem satisfied,
tracts by an Investment Trust. A
stock as he expects it to rise fur¬
Jk Class of Group Securities, Inc.
investment companies, the follow¬
instead, to rise and fall with the
fire Insurance company will in¬
v'-1 1'
V '
'"V-y.'" ■
•
•
■■
ther;
He buys a Call contract at
market averages and depend on
sure
a
house
ing
management results were
against fire for
57 for 90 days for which he pays
interest and dividends on their
Prospectus on Request
achieved; Affiliated Fund (a lev¬
$5,000 for 3 years for a premium
a cash premium and then sells his
holdings, and their ability vto buy
of .$25.00. If the house burns down
erage
investment company) re¬
low and sell high. Trusts who own long stock, knowing that he can it is a
corded a net gain in asset value
complete loss to the insur¬
now utilize his cash proceeds from
1,000 shares of U; S. Steel, for in¬
ance
per share of 54.2%,
Total divi¬
company, they have no house
the sale of his stock,
and also
dends of 120 -from net investment
to deliver, The Investment; Trust
stance, collect an annual dividend
GROUP/
knowing that if Steel continues to
of writing general insurance.
.
STEEL
SHARES
..
'
•
DISTRIBUTORS
the
for
income
Incorporated
afforded a
year
63 WALL
yield of 5.1% on the basis of the
year-end offering price. American
appreciated 32.1%
Business Shares
asset value and
of 4.3% on the
in per share net
afforded a yield
STREET—NEW YORE
Union Trus¬
performed as follows:
basis as above.
same
teed. Funds
V
i
•••"'>' '
:v
>'
which
Fund
Fund
"Union Bond
Bond
Union
„
23.0
4.4%
are
achieved
a
during the year in
16 industry series
13.8% advance of the
performance
which 12 of the
the
beat
Industrial
Average.
Merchandising Series topped the
list with a net gain in asset value
Dow-Jones
;
6.8
share of 49.3%, followed by
Railroad Equipment Series with
per
Fund B did
30, 1943 ana
:
Custodian Funds showed
an
increase
in combined asset
value from $42,754,000 at the be¬
ginning of the year to $67,168,000
Keystone
of 1943.
at the end
%
■
net
$13,631,453
to
to
insurance"1 business
the
in¬
Fund
asset value from
$15,924,051, during
the last six months
which they receive cash
the
on
of 1943. (This
These Options, known
Calls, are sought by
who
used,
are
the
in
He
Option
of
one
was
insurance,
as
♦Herbert Filer of Filer,
been
in. the
interested
are
market and
years.
which
and
Puts
those
premiums
securities
various-
they hold.
as
has
Bond
Manhattan
creased its
•,
they will find that there is a con¬
sistent demand for Options, for
„
Stocks
York
New
•
By making a study of this ""sim¬
ilar
6.7
Fund
.
—
jNote—Union Common Stock Fund "A" and Union Common Stock
assume definitive
form as to portfolio make-up until about June
therefore not included in the above tabulation.
• V
■':*
not
do
5.3
45.1
Preferred Stock
Union
in¬
Schmidt & Co.
business for 25
committee of the
a
Brokers & Dealers Associa¬
Put and Call
Inc., who successfully defended the
before
the
Committee
of the
tion,
business
House
of
and
Representatives
Sen¬
the
he
advance,
stock
57
at
"recapture" his
can
time in 90 days
any
by the terms of his Call contract.
The
man
had
insured
himself
>
illustration:
another
is
Here
a
buy 100 shares of
Steel but feels that he would not
to
wants
like to risk too much of his capi¬
He
tal.
buys
contract
Put
a
at
57 for 90 days,
for which he pays
a
cash premium, and then buys
100 shares of the stock,
His Put
him
insures
contract
against
un¬
limited loss in the stock—he
deliver Steel
of
the
57
at
who
contract,
cash
premium,
days.
Through
any
the
receives a
time in 90
business of
supplying these Option
lies
contracts
income for
enormous
an
the
Here
Trusts.
vestment
can
maker
to the
vestment Trust acts
as
In¬
In¬
the insur¬
during
promulgation
of
the
1934
fund's fiscal year ends on Oct. 31 ate
Series, stood at
ance company and supplies to the
and the record of growth for the Security Act and also satisfied the SEC
the other end of the list with a
when
it
was
formed
of the
economic
investing public the
protecting
first half of the 1943 calendar year value of Put and Call
Option Contracts.
net decline of 7.5%. The Railroad
contract which
it demands and
is
not
available.
However, on He has traveled to the security markets
Series outgained the Dow-Jones
which is and can be best supplied
of London, Amsterdam,and Paris to study
Rail Average 25.4% to 21.4% and July 1, 1942, net assets totaled their Option business and is well quali¬ by Investment Trusts by reason of
$9,000,728.)
fied to discuss the subject.—-Editor.
the Public Utility Series beat the
their huge portfolios.
Group Securities increased its
Dow-Jones Public Utility Aver¬
As an example of how Trusts
total net asset value to $18,107,409
age 53.9% to 50.1%.
can use their portfolios to, sell Op¬
as of Dec. 31, 1943, compared with
Robey, the dividing line between
Group Securities had 19 classes
tions and collect these premiums,
the optimists and the pessimists
of shares outstanding at, the be¬ $9,390,105 at the beginning of the
let us say that U. S. Steel is selling
of this couhtry is a line which can
'
ginning of 1943. Fourteen of these year.'.
Aviation
48.5%.
...
.
the
out-perform¬
their respective averages.
In
common stock groups, 12 out
of
16
Anniversary
classes substantially
ed
did
the Dow-
than
better
The
leader among the common stock
groups was Investment Company
Shares with a net gain in asset
value per share of 64.3%,
Mer¬
chandising
Shares
was
second
with a net gain of 50.7% and Av¬
Industrial
Jories
iation
Shares
Average.
stood
end of the list with
of
0.8%.
at
a
Railroad
General
Bond
the
other
net decline
Shares
and
the two
classes invested in discount bonds,
showed net gains of 26.4% and
26.8%, respectively, and Utilities
Shares advanced 73.9%, compared
with a gain of 50.1% for the DowJones Utility Average.
Growth
most
Shares,
vin total asset value of
funds
considerably
was
greater than their respective per¬
centage
per
increases
in
asset value
share during the year. The 10
The
1944 marks the 50th
year
Anniversary of the founding of
the firm of Calvin Bullock, a pio¬
neer
the
in
investment
development of the
company in America.
high-lights of the
investment companies sponsored
by Calvin Bullock may be cited
the following: (1) No investment
company
under Calvin Bullock
management has ever omitted a
quarterly cash dividend; (2) since
the
Among
1929
these;;companies have paid
dividends
of
Shares, the largest
investment company in the Cal¬
vin
Bullock
group,
is now
11
years old, has net assets of over
$43,000,000 and is owned by some
40,000 shareholders.
(3)
Dividend
The
casion
"Chronicle"
takes
this
oc¬
to
join the entire invest¬
field in extending
congratulations to the firm of
Calvin Bullock on its 50 years of
accomplishment.
ment company
MIT's Brevits, in
quotes a
a
about the future.
are
to
manage¬
The bureaucrats
deeply pessimistic.
According
them the Government must be
"prepared to spend billions upon
billions
of
dollars ,* annually
to
keep our economic system afloat."
Robey has made an accurate
Mr.
analysis, we think,; and a signifi¬
cant
for the future.
one
Investment
/';
Lord, Abbett has issued
folder
new
some
a
hand¬
Affiliated
on
Fund entitled "A Low Priced Par¬
ticipation in High Quality Invest¬
ments."
are
Also
from
revised folders
"B"
Fund
and
this
Common
\
Stock Fund "A."
National
Securities & Research
has
Corp.
"Current
sponsor
Union Bond
on
Union
published
revised
a
Information"
Mr.
to
folder
on
Income
Shares
—
dividend of 120 per share
Feb.
1944,
1,
WE
to
>
Se|ies
Series
be obtained from
local investment dealt* or
your
may
56 CONGRESS
STREET, BOSTON, MASS-
accept
limited
a
put
and call options,
will sell
we
on a
service,
basis.
Prospectuses upon request
National Securities &
Research Corporation
120
LOS
BROADWAY, NEW YORK,
ANGELES, 634 S.
BOSTON,
The Keystone Corp. of Boston
WILL
securities, for whom
Securities
K-l, 2 in Preferred Stocks
Prospectus
called
to sell
on
53--.or
will
have
equivalent
tracts
sold
If
61.
to
sold
at
a
such
price
con¬
fairly regular
intervals the prices and expiration
dates are staggered and the cash
inflow is steady.
Let us assume
thaP
are
at
Investment
an
2,000
Trust
S.
at
that every week for
price.
a
a
owns
Steel and
a price or sell
Let us also as¬
shares of U.
would buy more at
Straddle
on
90 days
100 shares
the prevailing market price.
(Straddles are sold at the market
price.) At the end of 90 days they
have
sell
contracted
to
buy,
shares—at dif¬
and to ex¬
1,300
ferent contract prices
number of accounts of holders of
investing their capital as follows:
Series
be
57, but by reason of the
premium of $400 received it will
have bought Steel equivalent to
payable would.
stockholders of and/or
i
•'
: %
Participation in
S-l, 2,3, 4 in Common Stocks
will
or
Steel at
they sold
A
CHICAGO,
Spring St.,
(5)
(14)
10 Post Office Square
(4)
La
hundred
of
value
a
,
the
as
insurance
is 90
insurance
days
against the
as
of
policy
three
years
and the
premium received by the
Investment Trust $400 as against
the $25 premium received by the
Fire
Insurance
Trust has
is, the
Option
have the
of
case
not
If
is exercised,
stock
Call
total
a
Company.
the
"claim" against it, that
a
deliver
to
and
loss
not
they
in
the
is
it
be
alone
it may
but
a
profit if the cost of the stock
than
less
the Call
contract
was
price.
If,
on the other hand, the stock
is Put it does not necessarily have
to be a loss because the Trust has
the
can
the
as
to buy the stock, and
it until such time
money
they
sell
carry
rises or they can
Option contract that
market
another
will
them
take
stock at
out
profit.
a
So
of
the
one can
Put
read¬
ily see that the comparison be¬
tween the general insurance busi¬
and
ness
shows
the
that
selling of Options,
the
insurance
com¬
panies get lower premiums and in
of
case
claims
their
losses
actual losses and the sellers of
tions get larger
claims
have
the
also
.
Option business there is
for Options of 30These contracts are
demand
a
premiums and the
them do not necessarily
be losses.
\
on
to
In
are
Op¬
day duration.
sold differently than the
$5,200.
more
If this operation
than
of only
one
50%
of
the
on
little
holdings
of the Trust's stocks
much
as
tance
are
the
from
away
market
they
as
Straddle,
sold
a
dis¬
prevailing
price and the premium is
100-share con¬
fixed at $112.50 per
As in the case of U. S. Steel,
instance, selling at 57, 30-day
Call contracts are sold currently
IV2 points above 57; or at 58 y2.
tract.
A
Trust
owning - Steel 'cbuld well
Calls, let us *say) ai 58$, 59,
59$, 60 and so on as"and if the
sell
market
advanced
and
at
the
ex¬
piration of the Call contracts, if
they were not exercised, the oper¬
ation of
peated.
of
the
selling calls could be re¬
If, however, some or all
Calls
exercised, the
were
Trust could sell Put
for
contracts) also
cash premium, giving some-;
the right to deliver stock to
a
one
the Trust,
in its endeavor to
re¬
acquire the Steel shares previ¬
ously called.
It is true, however,
that whether the Trust has sharesof
a
company
which
to
buy
the funds with
the shares it can
or
sell
Options and make either the
stock or the'cash earn premiums
which
in
most
instances
will
usually amount to more than the
dividends received on the stock
question. The business of sell¬
Options may seem intricate
and complicated; to the contrary,
it is quite simple and quite auto¬
in
ing
$5,2G0 in premiums in 90
days, imagine the premiums that
could be produced by operating matic and if the officers and di¬
in a similar way on many of the rectors of the Trusts would take
j
other stocks held by the Trust.' the time to acquire the knowledge
Although all stocks do not com-,' of how this method, which is~corican earn
the same premiums for a I sidered to be an important by¬
Straddle, the percentage is about) product of any smart investment
the same.
j program, can properly be applied
It does not necessarily follow in to
their
portfolio
they
would
making such contracts that 1,300 really be amazed at the resulting
mand
FILER, SCHMIDT & CO.
Members
(9)
Salle St.
208 So.
same
for
at
Dividends
Quarterly
the
on
Steel, with
policy, $5,700; the duration of the
happen.; The Trust will buy Steel
some
'
of
the
in
pire on different dates—and they
would have received in premiums
Trust Funds
B-l, 2, 3 and 4 in Bonds
The Trust which
contract takes the
policy
a
about
$400 premium and agrees; that
they will either buy Steel at 57,
and/or, sell Steel at 57 in 90 days.
At the expiration of the Option
contract one of two things will
Series
and First Mutual Trust Fund.
record Jan, 15.
Certificates of
will pay $400.
sells ,such a.
sume
the six National Securities
Custodian Funds
~
insurance contract
at 57
Literature
Company
article
most interesting
According
the
of
recent issue,
by Ralph Robey in the magazine
"Newsweek."
between
drawn
$50,000,000;
over
at
57, someone wants to buy an
on Steel, they
industry and the Wash¬
want to buy a Straddle (a Put
ington bureaucrats, Industry and
arid a Call) on 100 shares, good
business
are
optimistic; hopeful
for 90 days at 57, for which they
be
ment
issues
shares
Option
against a rise in the market.
man
12-31-42 Price
'
38.4
'Fund/:'<C'%-----r---.----«-.-,i-.t^4'^------r:
Union' Bond
Option contracts.
Yield on
Assets
Values Per Share
15.6%
the
They
holding.
not, however, avail themselves of
the opportunity to collect a con¬
tinuous flow of premiums which
could be theirs through the sale
of
Net Gain in
that
on
of
limit
the
is
come
Put
&
Call
30
Brokers and Dealers
Pine
Street,, n,
Y.
WHitehaH 3-9177
5
Inc.
shares
will
be. called
shares will be Put.
T
or
1,300 improvement in the increased
It tnay be tnat ! turn on their securities.
re¬
Volume
Number
159
THE COMMERCIAL & FINANCIAL CHRONICLE
4246
in rail mortgages as a means of
flect in the market values of their
OUR
securities,
REPORTER'S
this week,
the Commission told
duction
to
debt
funded
cious start in the
auspi¬
issue
new
mar¬
ket with both the large corporate
offerings
which
in
ushered
the
period
meeting a demand that
have surprised the sponsor¬
must
ing syndicates themselves.Ail
of
,
of
aggregate
$350,000,000, which would com¬
pare with an actual total of $324,375,299 paid off in 1942 on the
basis of the ICC's figures.
The Commission revealed too
$100,000,000
account of two corporations, one
that
utility
issues
which
will
probably be along right after the
Treasury's Fourth War Loan Drive
is completed.
Oklahoma
expected
Natural
refinance
to
Co.
is
out¬
$25,000,000
debt
$10,000,000 preferred stock.
and
standing
it
was
considering
an
meantime
the
merger of
Virginia Electric & Power Co. and
Virginia Public Service Co. opens
the
way
for refinancing of the
urging
"escape clause"
of the
New
City with the specific
them by the 406
voluntary hospitals, welfare and
health agencies affiliated with the
York
New
Jan.
on
12
Fund
over
tion
Straus,
as
President
public
a
of
program
of
the air
the
service.
series
Each
concerns
dramatized real life stories, based
was
Station
the
on
WMCA at 9:45 p. m.
The broad¬
cast
series
were
arranged
by
by
social
conclusion
through the
issue of $24,500,000 of new 3%%
the
on
his
$5,000,000 of short-term
agencies.
of
field
the
a
of
her
or
offering the
obligations.
of persons
records
the
speaker gives
former's funded debt
bonds and
President
time and the facilities of the sta¬
offered
Greater
Ballantme,
WMCA, who has donated
York
services
A.
Fund, in cooperation with
Nathan
of weekly radio pro¬
acquaint the people of
to
started
Gas
its
And
legislation to permit railroads to
incorporate
utility and the other an indus¬
a
place the amount of
around
rail debt retired last year
are reported in
of formation to bid on two
,
securities, offered for the
new
Estimates
new
carriers.
fixed charges of the
The year got away to an
process
and
Arthur
series
grams
Banking groups
gradual re¬
promote
in
A
New Utility Issues
Congress it intends to continue
efforts
REPORT
ture periods of stress.
report,
its annual
Rendering
Radio Programs On Work
Of Greater New York Fund
preventing bankruptcies in fu¬
'
177
drama
helped
At the
a
guest
two-minute talk
work
same
covered
and
agency
type of service.
trial company, were snapped up
with
vigor that belied the in¬
lethargy of the market
a
dicated
of 1943.
in the closing days
Florida
&
Power
This announcement is under no circumstances to be construed
Co.'s
Light
$55,000,000 of 1st mortgage bonds
and debentures,
offered yester¬
day, proved an unusually fast
deal with every indication that the
securities: The
•
(
.
Prospectus
may
offer of these securities for sale
as an
be obtained in
any
only such of the undersigned as
,
or as a
solicitation of
offer to buy any of such,
an
State in which tffis announcement is circulated from
are
registered dealers in such State.
\
(
■ - .
,
January 13, 1944
NEW ISSUE
had: been
underwriters
swamped
with inquiries from potential buy¬
ers
between the time of the award
of
the
securities
in
competitive
Monday, and the open¬
ing of the subscription books.
Insurance companies were: re¬
bidding,
•jh*
on
Puerto Rico Water Resources
ported large scale buyers of both
the
the bonds and the debentures,
Electric Revenue Bonds
put it in the parlance of
dealers, "going out the win¬
latter to
the
dow.'-
'.(ff
the
Much
Dated
in
true
held
same
January 1,1944
Due
v
shown below
as
connection with Tuesday's pub;
of $45,000,000 of
preferred stock of the
Under the
offering
lie
4%%
Firestone
Tire
indus¬
offering since
1937, were able
to announce
oversubscription and closing of
trial
largest
the
business,
that thr reception' ac¬
corded these issues was cheering
To
say
would
putting it mildly,A
the underwriting world
to
be
To Tax Or Not To Tax
^
^
'
Washington
indicate
dispatches
that the Tax Court of the United
will shortly
States
hand down
a
ruling which will have much bear¬
ing on the Treasury's fight to tax
the income frorh State and munic¬
ipal obligations.
The court will
rule in
test
a
involving the right of the
case
of Internal Revenue to
Bureau
income
the
tax
received
on
bonds issued by the Port of New
York Authority.
The
which
controversy
back to 1941
was
But
.
•
1950
1951
1952
1953
1954
1955
1956
-
*
the matter is not
Court
Supreme
1949
1
1
1
1
!
1
1
Jan. 1
July 1
Jan. 1
July 1
Jan. 1
July 1
Jan. 1
July 1
Jan. 1
July 1
Jan. 1
July 1
Jan. 1
July 1
Jan. 1
July 1
*
iff.
Y Y-
of
*
•
;
v.
455,000
■.!■"•■
*
v
■<
:
-
460,000
.460,000
1.80%
1.85
470,000
1.90
;
V 475,000
1.95YlkvY
480,000
2.00
485,000
2.00
<v'i
495,000
A- 495,000
2.05
:
2.05
V •<:
505,000
2.10
510,000
2.10
A Yv7
520,000
2.15
A-7-7
525,000
2.15
535,000
2.20
535,000
2.20
545,000
;
550,000
Y:
,
Y
■
.7:
-
;
-
2 K%
23^%
23/2%
23m
23/2%
23/2%
23/2%
2J/2%
2H%
m%
2H%
2 y2%
2H%
2M%
23/2%
2H%
2H%
2K%
2H%
2M%
2H%
2H%
2K%
1957
Jan.
July
1958 Jan.
July
1959 Jan.
July
1
1
2.25%
■'
2.30
2.35
2.35
*
2.35
.
1
1
2.35
1
1
1
1
l
1
July
1961 Jan.
July
1962 Jan.
July
1963 Jan.
July
1964 Jan,
July
1965 Jan.
July
1966 Jan.
July
1967 Jan.
July
1968 Jan.
July
1969 Jan.
!
:•
/
2.30
1
1
1
1
1960 Jan. 1
;
2.25
2.40
2.40
72.40
2,40
■
2.45
2.45
2.45
2.45
1
1
1
1
1
1
1
1
1
1
2.45
2.45
'
100
100
100
;
100
100
v
100
100
In addition
1950
to
$6,950,000 of Bonds constituting a portion of each of .the semi-annual maturities January 1,
January 1, 1959, inclusive, and July 1, 1960 to January 1,1968, inclusive, have been sold and do
not constitute a part of this offering.
United
the
For
Rail Bonds Still Popular
information relating to the Puerto Rico Water Resources Authority Electric Revenue Bonds
reference is made to the offering Prospectus which should be read prior to the purchase of
V
of these securities. This announcement does not constitute an offer to sell these securities
any
dire
the
vi: 2K%:
Arrangements for the sale of these bonds have been made and they do not constitute a part of this offering.
,.1-; il--
Notwithstanding
$410,000
415,000
fjYZ'Yf
420,000
425,000
7:1
430,000
.! •' '' ■:■■•! '■
435,000
440,000
■'
445,000
*
Due
Rate
IJ.
*f:'f
to
Maturity
(or price)
(Plus accrued Interest)
expected to end with the forth¬
coming ruling. Rather it is viewed
as destined for final appeal to the
States.
July
1946 Jan.
July
1947 Jan.
--V; ' July
1948 Jan.
July
234%
234%
-234%
214%
234%
234%
234%
234%
234%
234%
234%
234%
234%
214%
234%
214% •
214%
Amount
Maturity
7.
1945 Jan. 1
dates
Court last; summer and its
opinion should be down most any
now.
M%
2 Wo.
2/4%
2^4%
2J4%
234% l
234%;
aired before the
Tax
time
Due
Rate
Amount
the offering price.
Yield
Interest
Principal
to
'
$270,000
140,000
145,000
315,000
320,000
320,000
330,000
330,000
340,000
340,000
345,000
350,000
350,000
360,000
360,000
365,000
370,000
375,000
380,000
385,000
390,000
395,000
400,000
405,000
commands a premium of a point
-Yield
Interest;
Principal
of the time of opening, The stock
over
in the
AMOUNTS, INTEREST RATE, MATURITIES AND YIELDS (OR PRICES)
preferred
the books within barely an hour
f
are,
big piece
Bankers handling that
of
provisions of the Acts of Congress now in force, the Bonds ana income therefrom
opinion of counsel, exempt from Federal income and State taxation.
Co.
Rubber
&
ex¬
in
perience of some score carriers
through the lean period of the
late '20s and early '30s, the liens
any
State to
any person
to
whom it is unlawful to make such offer in such State.
of the railroads continue to com¬
mand
no
end of popularity.
The First Boston
With their books again open,
insurance
men
are
reported
more
once
active in that section of the
soned bond
And
market.
deal
circles,
tripel A's
or
is
sea¬
not
for
the
are a
shade off the foregoing qual¬
Evidently their aim is
a
turn
at the
Co., Inc.
A. C.
.
same
time,
on
•
the
an
'
;
Kneeland & Co.
Incorporated!.
re¬
.
|
v
E. H. Rollins !& Sons
The Ranson-Davidson
Incorporated
.
.
'■-k'-V
'
:
Merrill Lynch, Pierce, Fenner & Beane
The Milwaukee Company
Eldredge & Co.
Company
Incorporated
Incorporated
Hawley,Shepard&Co.
Lee Higginson Corporation
Graham, Parsons & Co.
'■
•
McDonald-Coolidge &Co. Field,Richards &Co.
The First Cleveland Corporation
offered.
Whiting, Weeks & Stubbs
ICC Sets The Stage
Incorporated
The Interstate Commerce Com¬
mission! is doing its bit to improve
the
Barcus, Kindred & Co.
Lazarci Freres & Co.
Allyn and Company
satis¬
factory degree of safety with
eye,
Blair &
gilt-edge variety.
Rather they are inclined to lean
toward good quality bonds which
ity.
B. J. Van Ingen & Co. Inc.
.
their
search, judging from comments
in
Corporation
portfolio
company
credit
standing
of
the
rail¬
roads which incidentally must re¬
Newton, Abbe & Company
.
■
Indianapolis Bond & Share Corporation
Ballou, Adams & Co.
:
J. M. Dain & Company
.Incorporated
Channer Securities Co.
by
others
.
1
THE
178
COMMERCIAL & FINANCIAL
has become
Of Justice
Order Out Of Chaos In
costly and
Will The Department
_
for
each group
of syndicate
Case?
first page)
(Continued from
,: .
organization of dealers in securities, complying with
the authority assumed to be granted such an organization
under the law, fined about 70 members of the underwriting
distribution.
offering price
In the
writers.
case
when
1938
there
is
make
to
the
ments in
selling
plans
steps
agree¬
question permissible
lest v; it be
enforceable
and
of
1934!
Act of
the 17th
Se¬ argued that while it is true
which amends the
curities Exchange
NASD,
on
opnngs, should make
to take the' necessary
more
The Maloney Act
trouble.-
the
they meet
and J 8th of this month at Hot
gardless of which decision the
SEC reaches
of
Governors
of
of large
group for failure to maintain the agreed
on
the bonds.
The SEC is still?
issues the costs are endured
was sought to correct the mis¬
and of course must be paid by
investigating this matter
takes of the 20's. For exam¬
the immediate pomt of the
some
one—the dealers, the
ple, witness our foreign pol¬
bond buyers or the corporate
controversy seems to turn on
icy on loans and investments
whether the SEC will uphold
borrower. The restraints that
during the 30's and how we
the authority of the NASD to
slow down
or
prevent the
have reversed it since the war
flow of capital into produc¬
fjne or punish its members
began. Mistakes made by un¬
for violating the customary
tion are charges against soci¬
derwriters in the credit infla¬
price pegging agreement. It tion
period of the 20's and the ety in the form of less busi¬
the NASD has no authority m
default of foreign ; govern¬ ness, less production, unem¬
presumably has
authority that it is sure o±
all proba¬ during the period
the SEC would in
small issues these price agreements were legal
then the Department of Jus¬
costly practices are too much
and small businesses find it tice could be expected to ap¬
almost impossible to get the peal with both the NASD and
services of the best under¬ the SEC opposing it. But re¬
case,
Stituted
this matter it
underwriters
of initial
by
prices
ity
the Department of Justice and
and
present each
underwriting bility fight the appeal. But
Incidentally, as a further
if the SEC finds the NASD
agreement and then wait to
protection to underwriters,
receive the go-a-head signal had the power to discipline
the members of the Board of
of the Commission.
In the its members and ' that the
Agreements
:.T~Z#*XwSM'
which specifically empowered
the burdensome, NASD would have the right
the SEC to provide rules and
to appeal to the Circuit Court
delaying practice
of Appeals. In this event the regulations for pegging secur¬
managers to journey to
head office of the SEC
Underwriting
The NASD
Thursday, January 13, 1944
CHRONICLE
that
are
legalized the status of the na¬
of the NASD
members
exempt from the / provi¬
association sions ^ of the anti-trust laws
this is so only in so far as
the legal procedure
under which the NASD oper¬ operations are concerned that
ates.
This Maloney Act fur¬ are specifically authorized by
ther says: "IF ANY PROVI-1 the by-laws or rules of the
y;
j...
SION OF THIS SECTION IS Association. Usecurities*
tional
and set up
.
.
more costly pro¬
duction and a lower standard IN CONFLICT WITH ANY The
Capital Markets, Conmanagement of foreign gov¬
in any other matters regula
of living for every one. Are PROVISION OF ANY LAW
ernments and the result of
77 gress and the SEC
; 7
ing the conduct of its niemthese costs offset by any ben¬ OF THE UNITED STATES
war can not be blamed upon
It is of the utmost import*
IN FORCE ON THE DATE
bers, and therefore the NASD underwriters if the securities efits received? This question
ance
at this time that this
with its 2,000 members has
is one the SEC or some com¬ THIS SECTION TAKES EF¬
were as represented when of¬
price - pegging policy be
no excuse for existing.
The
FECT, THE PROVISION OF
fered. If the capital markets petent research body should
cleared up to the full satisfac¬
THIS : SECTION
SHALL
exact agreements in this case
answer, v
are to play their part in re¬
tion of all interested parties.
PREVAIL." This would clear¬
are
not
available to
the
construction^ both domestic
We are now face to face with
Significant Points In This
writer. But a typical agree¬
ly indicate that the Congress
and foreign, these markets
the reconstruction post - war
>;Case .. y;?
never intended that the pro¬
ment in the ordinary practice
must
be free, independent
visions
of
the; Anti-Trust period. The capital markets
of a bond selling syndicate
; are
and honestly managed.
have a most important role in
Mis¬ in Therecase other
this
of great import¬ laws
would
apply to the
would read as follows:
takes will be made. But risks
this period, and upon the cap¬
ance to the financial: world.
price-agreements in the un¬
"During the life of the bond must be taken or the capital
ital markets a heavy burden
If the SEC approves the ac¬
derwriting of securities ' be¬
selling syndicate you shall markets can not be of great
tion of the NASD then that cause the Securities Exchange rests. The present uncertainty
not offer the bonds at a price
service in rebuilding the post¬
of policy and legal fear which
seems tantamount to approv¬ Act
below the initial public offer¬
specifically recognizes
war world.
This practice of
exist in these markets and
ing the price pegging agree¬ the pegging of prices by un¬
ing price. In the event that Pegging, fixing and stabiliz¬
ment and the policy. This is derwriters
according to "such among the NASD members
during the life of the bond
would be enough in normal
ing the prices, absolutely es¬ especially important because rules
and regulations as the
selling syndicate any member sential for fairness and coop¬
times to bring on a depres¬
of the need for some rule or Commission
tof the underwriting group
may preseribe.as
eration, in the offerings of
sion.
The entry , of the De¬
no
ments
resulting from the
mis¬ ployment,
fine points
,
'
through the managers of the
bond selling syndicate con¬
tracts for or purchases in the
policy
pegging the prices of
While
market at or below the new securities is permitted
public price offering under the
Securities
Ex¬
any of the bonds theretofore
change Act, the law states
delivered to you, the man¬
specifically that it must not
agers receive
the right to be "in contravention of such
; open
initial
above-mention¬
rules
in respect of
Commission
such bonds and in addition to ,
concession
charge you with the broker's
commission paid thereon."
Pegging the price of a new
bond issue for a period of
agreed upon by the syn¬
practice ex¬
time
:
dicate is the trade
pected by the general run of
bond buyers as a matter of
necessity and maintaining
fairness in the merchandising
•
of
issues.
new
In
of
the
important function
underwriting and distrib¬
uting new securities, the orig¬
inating house is expected to
maintain the offering price
until the issue is fully distrib¬
uted and thereafter to main¬
tain
a
This has been
market.
the custom for
so
long that its
origin is unknown. This prac¬
tice has been abused by fly-
well
by-night firms but no
established
firm has
abused
this
practice knowingly but
has sought to
protect its reputation with de¬
pendable issues at prices that
on
fit
the contrary
the
market
or
necessary
appropriate in
protection of.; the
gated
to
prescribe but has
diana
time
the trade
as
above.
the present
previously stated
the
investor."
partment of Justice into this
case
.may
tive
complied with
practice or/with the
bonds
On the other hand, if wishes of the SEC
or
at
the
time.
were
made
in
may
or
had the
mission,;.- *'V
.
V.
.v
reason
the Securities and
Exchange
Commission has not seen- fit
for existence but the
render
its
own
pricing poli-
the
MAonmeaningleSS and
rejecting its own price sta¬ NASD a powerless puppet
bilizing policy or rendering which has only the excuse for
any further price stabilizing its existence of serving the
go-ahead signals as worthless
as
a
shock absorber.
and unenforceable.
If price Moreover if the
Department
of
stabilizing agreements on new
issues
tip to the present, however,
•
the SEC does not
SEC, would be in the position
then
can
not
be
of Justice is
enforced
syndicate managers can
finally lined up
both the SEC and the
NASD
and
wins
the
case
re¬
Shall
issues.
based
has worked
man
have
we
law
a
experience that
upon
or
shall
made rules
mission for each
we
have
by the Com¬
case or
shall
the risks of under¬
all other laws of the
any
United
Editor, Commercial and
one
t h
been
made
to
write
that rule has
a
soon
rule.
out¬
carried to the courts
on
ap¬
peal. If the SEC finds that the
serted in the Maloney
Act the
clause
waiving all otherTaws
of the United States which
the size and complica¬
bull market of the 20'$. But tions-, of the Securities Ex¬ NASD had no authority to
might be in conflict with this
equally bad mistakes have change Act itself. In so far as discipline its members be¬
policy and
a
Maybe Congress
will take note of this impor¬
tant problem/and the conflict
of policy or lack of policy,
and the probable conflict of
laws, or authorities, and take
up and legalize, regardless of
the Maloney Act, the estab¬
lished trade practice which
has served the country well
in the matter of underwriting
and distributing. new capital
acquainted with tal, or only the few excep¬
Financial
Chronicle, 25 Spruce
States which are in conflict.
e
St., New York 8, New York
security under writing tional issues of outstanding It seems
clear that the re¬
business why no such rule has
merit
could finda
ready sponsibility for devising a
been forthcoming for general
market. "-V;- -v •
....
.
Deferments Set Aside
,?f Pegging, fixing and
use. Stated frankly the varia¬
The
Anti-Trust
Laws
and stabilizing the prices of new For 18-21 Year-Olds
tion
in
each
underwriting
securities issues in the process
Occupational
deferments
for
Price Agreements Among
case is such that
any general
oL distribution is upon the draft registrants from 18 through
Underwriters
rule
can
not
be
specific
21 years old have been banned by
SEC. The intention of Con¬
the. Selective
Service, effective
Regardless of which way
enough to cover ,the great
gress was not to make one Feb. 1. The action, announced by
variety and at the same time the SEC decides on the price
law that conflicted with an¬ Major-General Lewis B. Hershey^
be
practical.
Efforts have agreements the case will be
other or it would not have in¬ national Selective Service Direc¬
to
the
strictions of the 30's when it
prove
we have no policy at all upon
against them for violating the
writing new capital issues and Anti-Trust Laws this would which any underwriter can
to issue any general rule on
the capital markets for new
depend?.'... y:.y.:.
.
nullify the price - pegging
Pegging, fixing and stabiliz¬ issues would be in a state of
The CHRONICLE invites com¬
clause of the Securities Ex¬
ing. In spite of the fact that chaos.
ments on the views expressed in
Underwriters
would
change Act and the clause in
this is one of their legal func¬
have to become agents and me
Maloney Act in which phases nf % °r un- any related
nhaspf of the subject under dis¬
tions specifically set forth in
shove the risks back on the
Congress specifically waives
the law it is understandable
cussion;• toComments should be adL
dressed
corporations in need of capi¬
not .take
grown
been made in
construc¬
force.
the In¬
If the underwriters of
failed to do up to
prescribe as
appropriate in
the public interest or for the
protection of the investor."
The legal responsibility for
rules and regulations govern¬
ing the prices of new securi¬
ties issues is upon the Com¬
necessary
But
Mistakes
pegging, fixing, and
uphold the go-ahead signal of the SEC,
NASD, not only would the or¬ then
;it would seem that the
and regulations as the
ganization seem to have no SEC must back the NASD or
withhold the
ed
on
securities, is at present,
stabilizing prices of new is¬ the public interest or for
almost in a state of chaos.
sues which
the SEC is obli¬
new
this writer has been able to
cause
learn
were
from
underwriters
it
the
price
agreements
in-restraint of trade the
Act
which
amend
the
was
an
Act
securities
to
Act
tor,
is designed to make at l'east
115,000
for
the
more
military
duty,
Associated
Hershey
the
non-fathers eligible
move
warned,
will
according
Press.
however,
not long
to
General
that
postpone
the drafting of pre-war fathers.
'
Volume
159
Number
THE COMMERCIAL
4246
& FINANCIAL
already begins to make itself
CHRONICLE
ap¬
that
Now
thrown
into
effort
our
preservation.
Our Army and
self-
for
Navy, long
denied the support for which they
had so persistently pleaded, would
our
have all and
now
could
have
than they
This was the
more
asked:
greatest production country in the
world, and we would show the
world
what
And
;
have.
we
From
billion
a
groups
and
hold,
seem
the
evitably
we
These
October
of
'43—this
conversion from
the
resounding
America.
ing
The effect
Old
vious,
higher
thought
able
7
spectacular
peace to war was
of produc¬
answer
1
plants
rates
have
than
possible.
at
run
they
had
unbeliev¬
An
of
ob¬
was
new
have
ones
been
constructed, some with pri¬
vate capital, the greater
part, nec¬
essarily so, with government as¬
sistance.; The demand for labor
which
than not,
that the available labor
But, generally speaking, the char¬
acter of industry's problems ever
since that
shocking Pearl Harbor
day has been the same; the point
I want to make is that
they could be
ably clarity.
for
tion
knew
that day
on
with
seen
reason¬
Full, all-out produc¬
single
a
fear
who
wanted,
who
what:; he
wanted all he could get, and was
abuntantly
able
to
it—
for
pay
that clearly-defined job stood be¬
But
•
today what do
Well,
on
other.
and
effort
an
pa¬
was
only
Sam
plenty
with
mistakes
to
it.
make
of
finds
with
be
Many
were
I
for
war
is
lems of
a
still
some
empha¬
with us,
of the
work
It
components
goods
short.
a
required
still
are
Which
for
plants
the
an¬
war
program,
to
dispose of the
suggesting that when
easy
by
are
available,
restric-
tions should be lifted and indus¬
He would
on.
critically
bor for civilian goods. His former
washing machine competitor may
going to
peace-time goods, is
question easy to ask but difficult
are
these
be in
an
easier labor market
to answer.
the
Let me take a simple case and
try to follow it through to the
point of difficult conclusion. Let
much-needed
that
assume
us
that
it
the
cut
Army
like to go back to
making these things again, but
obviously if he were stopped from
making fuses, because labor was.
tight, he shouldn't use scarce la¬
peace¬
back to making his old and
peace-time
Since materials may be
doesn't
he
finds
article.
available,
why he shouldn't.
see
of its
The question is therefore imnfedi-
decide where that cut-back
attempting to
ought
Fuses are made by
every kind of manufacturer; some
by washing
machine manufac¬
turers, some by automobile manu-*
ately 'raised of how many sewing
machines should be permitted and
to take place.
who should make them.
Granted
that
enough,
can
back
part
fuse program and is
facturers; and
tight
Some
so on.
are
materials
free
are
shall Government go over the list
of
washing
machine
manufac¬
turers, arbitrarily picking out this
who hasn't been doing a good,
war
job, perhaps, or who may
in
labor
markets,' and some
may not be. A part of the produc¬
tion may come from plants fi¬
man
nanced
by government.
Now it isn't too difficult in such a
and
situation to conclude that the part
manufacturer
of
the
have
wholly
Some
the
of
'manufac¬
turers of fuses may want to have
orders
terminated, but it
be clear that
must
their
continue
war
some
work.
of them
full
at
speed on
dealing with
In
make
washing
turning
to
while
who
is
us
that
The
can
about.
come
plexing questions of
of
to
.
.
New Issue
already begin to thrust
themselves aggressively forward.
Cutting back production—some¬
peace
circumstances
no
an
offer to
be construed
to
buy,
any
as an
,
/
■
t
'
:
i
■'
'
aircraft program and
to him that he can't be
spared? I don't have to point out
the critical consequences of such
critical
a
decision/
Labor
.V,''
■
has
a
vital interest ^in
these decisions because it is sub¬
stantially affected by them.
"tl
actually
closing a plant
down—cancelling some contracts
here and there—failing to place
new ones—these are
happening on
of two plants, the first being en¬
be had
can
because the Ser¬
groups
of
will be
a
organized committees
components and
turers whose
But
an
advice
can
important
consideration
will
their
of them
fuse
will,
as
be had.
part
be
chance to work in
gaged in
war work but obviously
job which will stop when the
war program
changes or ends, and
the
second
in
a
plant making
peace-time goods, it seems to me
at
a
freed
can
try's immediate interest is that he
I said, have made
offering of these Shares for sate,
or as an
means
small scale today; but they are
expect to keep.
(Continued
on
But the
page
offer to buy,
or as a
solicitation
of the Prospectus.
V'
-4V2% Series Preferred Stock (Cumulative)
'
•
V--'/' ($100 Par Value)
increased production of
consumer
goods must be allowed to inter¬
fere with that.
integrity
of
.
I have faith in the
American
industry
that it will not allow the tempta¬
tion to return to
its normal busi¬
Price $100 Per Share
understandable as that temp¬
tation' is, to detract one iota from
giving the military services what
they want when they want it. As
ness,
we
look at it now,
the volume of
production for 1944 ought to
war
be
some 10 to 15%
larger than'for
J943, although this does not inyolve much of an increase above
the present rate.
for
count
the
items.
followed
Construction,
hand,
-
down.
that
should
It will
there
is
be
be
Harriman Ripley & Co.
can
civilian
be
produced
large.
''
But
and
It
is
many
critical
easy
will
difficult
same..
that
there
in
be
no
'
many
problems,;
generally
materials
before,
supply.
are
The First Boston
event
government.
I
of
just
which
now
months,
but
as
I
^
'
*
Lehman Brothers
'
Smith, Barney & Co.
Glore, Forgan & Co.
Corporation
Goldman, Sachs & Co.
the
Merrill Lynch, Pierce, Fenner & Beane
Union Securities Corporation
were
Hayden, Miller and Company
in fairly
places
Hayden, Stone & Co.
Kidder, Peabody & Co.
are
the
don't
need be serious in
T
understood
There
criticism
*
new
where there is available labor, and
this is likely to provide a basis for
some
Lazard Freres & Co.
'
which
goods
is
(Incorporated)
Blyth & Co., Inc.
a
■
of
Otis & Co.
Incorporated
the
therefore,
seen,
still
on
sharply'F
big war job
ahead of the country and that the
amount
very
be obtained from only such of the undersigned as may
part of
by radio,
vessels, and certain special¬
naval
ized
may
legally offer these Shares in compliance with the securities laws of the respective States.
ac¬
considerable
a
increase,
other
Aircraft will
Copies of the Prospectus
Lee Higginson Corporation
policy of
think this
the immediate
look
farther
ahead and pass the period of
Stone & Webster and
Incorporated
j
j
Ger-'
January 11, 1944.
Blodget
coun¬
180)
The Firestone Tire & Rubber Company
more widespread in
1944—just how much more, is im¬
possible to say. One thing is cer¬
tain, and that is that our Army
and Navy must have first call on
the
production capacity of the
country and no considerations of
one
Some
are
contracts.
a
logical that he is likely to prefer
the latter.
That is a job that he
of the
what these
companies are to do that
from
there
group of fuse manufac¬
has
450,000 Shares
likely to be
a
man
try
v
times
If
that question, the advice of indus¬
of such Shares. The offer is made only by
,v■
the
engaged in
per¬
return
a
This is under
before
ma¬
saying
their
may
him
chines,
fuse production which is in a
tight labor market Plight to be re¬
duced.
completed his fuse contract,
let
the
hard road lies ahead of
and
effort not affected if he
war
went
have
been engaged
in normal times—.
sewing machines and so
another
industry to deal, with their
with
materials
peace now sure to come,
not
vices
with
think, the most difficult.
seems
matter
but
prob-
are
from
done
since I have
this is, I
to
as
manufacturer
remem¬
these
be
face?
we
defeat of Germany
would; seem fairly probable for
sometime in 1944, and Japan in
•'45 or '46, although a long and
a
question
be
must
materials
Of all of the questions
to which I have tried to find
size, the necesity of large produc¬
tion
the
raises
should
swers
in
repeatedly
one
acutely seriously problem
Germany goes down.
surpluses.
amazingly well done.
must
more
not fully occupied
work. That promises to
war
This
what
and
more
plants
an
when
of war, but on the whole the
As
the
and
tially,
peace-time economy to the busi¬
was
less pub¬
metals.
We
country, there are
spots here and there where the
pressure has
eased off substan¬
undoubtedly made
in the process of moving from a
ness
other
non-ferrous
of
areas
a
which
the
military needs can absorb. While
manpower is very critical in many
need for almost any¬
thing which the country could
make, ample labor and materials
money,
of
copper
as the
military forces would
like, but other forms of steel are
customer—
one
similarly true of
available in larger quantities than
speaking,
with
—
Remem¬
rate
Every im¬
broadly
procurement.
still cannot get steel in the form
of plate and sheets at as
large a
to
because,
atmo¬
be taken
some
licized
of
possible time, and this was made
easy
is
and
bring about the
production in the least
greatest
the
in
can
urgency
their
This
pulse tended to keep us together
in
that
are
of aluminum actually exceeds the
current rate of war consumption.
the
forces
hand,
one
the
the shadow of
fore the people of this country on
those fateful days, two ye.ars ago.
Then
war.
forces—the
the
on
triotism
job
customer
to
peace
there
(determines the rate of production,
us.
reconversion
country was knit together by great
emotional
materials
supply
able
are
level rate,
on a more
our raw
of
we
bering the days when one heard
but constant complaints
of the shortage of aluminum, it is
gratifying to see that the supply
had to meet in moving
we
Uncle
true
generally
more
of
and
nothing
war
today
is
of
of
sphere
off
over
along
run
sufficient
to peace are in many
respects more difficult than those
from
has grown month by month, until
it
ahead
years
problems
be
can
it
all
all sorts of civilian items, One of
them might be a washing machine
manu¬
peace-time
supply; over the greater
part of the country there is still
no
surplus of labor, and many
make
many
test in the
most; crucial
of its-
But
normal
easy
time
to
us
wholly inadequate to
issues which in¬
must face.
and
months
from
industry
on
number
billion in
of
many
well be that democracy
faces its
tober of '42 and
so
grave
It may
something for our¬
selves, to almost 5 billion in Oc¬
over
that
views
little
places
some
its
that
bered
in
pretty well
the pressure of in¬
for their own
betterment without regard to the
country's
welfare,
the
narrow
dividual
them,
of
goods.
reduced, and
since the period of acceleration of
the war production program
is
programs
that are past,
dollars in October of '41 Tor aid to
Britain
where it needs
national habit in the years
our
of material at the
reserves
which has characterized too much
meet
outraged democ¬
an
could do to defend itself.
racy
many's defeat, I am gravely con¬
cerned." The pulling and hauling
of
the
Army is reason¬
ably well equipped and is begin¬
ning to see more or less adequate
(Continued from page 162)
try should go back to the
facture
parent.
■
shooting a pre¬
in a political cam¬
paign. Nothing is further, from
jfiy thought.
I shall merely haz¬
ard
a
personal conclusion,
to
which much of this talk is di¬
trade
What Dees I
(Continued from page 179)
war-time bench, i never seemed to hold much risk.
But generally the sooner we had
and any temptation put in -front
that load off our minds, the bet¬
of him would be regrettable. The
ter.
The
means
of paying it
pressures on industry to get into
off we instinctively
understood.
peace-time goods are obvious.; the
desire to get old customers back Money in the bank from the pro¬
in¬
strong pressures on
are
contracts
avoid it and to get out
dustry not to take war
if they can
or
property of
those who
had preceded us—it
was all very simple when we had
the mopey.
And so money and
debt
repayment have tradition¬
labor
the
from
Government—all of
negotiated by
these
of
sale
the
our labor or from
property,,we owned,
of
ceeds
the pref¬
erence to make something where
profits won't be artificially re¬
quickly as possible,
as
speech
paid
or
paratory gun
shall stay at his
means
bilities
to
as
pace
natural
ing
Whatever
the
which government should
in
business
at home, it
foreign trade.
our
may
which
be one's conviction as to
part
old
the
place
home
the
or
chance
Many of them
unwisely made and had
no
our
people of great
We
have
ourselves
as
possess¬
American economy has been built
these
on
large natural
of
more or
It
has not
that,
resources
less low-cost materials.
occured
there
to most of
could
these resources,
be
us
end
an
to
and the shocking
point which I want to try to bring
to you is that many of these re¬
and as we
when
rules
own
of
ing unlimited quantities of every¬
thing which our economy needed
—•iron and steel/zinc, copper and
tin, and so on, and generally
speaking, that has been true. The
intelligent and forceful assist¬
ance
from government in handl¬
of
international debt with
we
had a painful experi¬
people have.
have thought
we
a
as
resources..
thought
Certainly this is not
on
American
the
Traditionally,
of distribution.
quickly as they can.
as
our
that
ally
been
synonymous
to the ence in the twenties. That.was by
play
American people. When the last
the country's
letting that money due us in re¬ seems to me inevitable that the
war
was over, most of us across
interest, where the needs of war
payment
of
outstanding debts', course of development of foreign
the country thought the debts of
must have first place down to the
stay abroad in the form of loans trade must lean substantially on
Europe could and should be as
very day when the war is over.
assistance from agencies of gov¬
and investments; in too many in¬
And so 1944 promises a series of simply paid, if the debtor wanted
stances
this
was
an
expensive ernment. For the conduct of our
to pay them; and as we were ac¬
lesson.
profoundly difficult problems af¬
Many of our loans were business at home, we can make
customed to paying off the debt
fecting the very heart of our
them
of
approaching a balance
foreign trade picture that
to me to hold great prom¬
Before I tell you what that is,
I want to shatter a few illusions
for
method
of
special attention to the problems
settling
novel
and
new
a
ise.
world nation, is for a
a
will want to ship,
we
is
seems
responsi¬
our
carry
in
there
of ourselves
with some; of
rambling and
another
on
keep
Coupled with that is the need
retrospective
comment
to
safely
us
.
But let me go on
this
portant, that
i
in training
people to 'understand and meet
the problems of distribution. And
so I suggest now that one of the
urgent calls, in order to enable
failed
toward foreign
trade has
gotten us into .trouble before, and
would most certainly get us into
again.
the
to
But
icy
trouble
attention
much
so
problems of production, we have
rected, that a narrowly restrictive
and a needlessly obstructive pol¬
or
Thursday, January 13, 1944
& FINANCIAL CHRONICLE
THE COMMERCIAL
180
sources
are
approaching an end.
touched briefly
of being paid off.
want, but we can't make the rules
aspects of re¬ butcher or the baker, we assumed had no provision for self-liquida¬ for other countries.
Business¬ Indeed, some of them are now at
these debts from abroad could be
that point. I shan't try to be too
conversion; the way in which can¬
abroad',
when
they
are
tion; on some of them the interest men
as readily paid off.
And here is
precise as to how much of these
celled contracts are handled; the
Was
so
high that it couldn't be trading with us, are likely to
fundamentally that serious mis¬
materials we have because that
treatment of what will be huge
met, and so our experience over have the fullest possible assist¬
understanding which I am appre¬
surpluses of raw materials and in¬
It will always be an arguable ques¬
that
period
with
international ance of their governments.
hensive may arise to haunt us •
tion if the limits are too closely
dustrial equipment; what is to be
loans generally left a bad taste in seems to me quite clear that un¬
I have
economy.
the competitive
on
(
done
cushion the shock of de¬
to
labor; these and many
others will challenge the' states¬
manship of American manage¬
mobilized
before.
What I have been saying up to
ment
as never
do with our
problems at home. I am equally
concerned about our international
economic relationships. Through¬
out our country's history to the
beginning of the last war, we had¬
this
has
point
to
ourselves
too seriously about the rest of the
world.
Certainly, foreign trade
wasn't a matter of very special
needed
n't
period of 20's and
however, the relationship of
economy of the United States
Through
the
took on
to that of other countries
the
to
the
of
rest
in
been
had
Before
debt
world.
the world was in debt
people we never did
understand the vital significance
After 1918,
to
As
us.
a
changed relationship, and
of that
conditions which
we shall'facp,' pnee
the urgency
of war demand is over and civil¬
ian goods are available for pur¬
countries
seriously
and sale to those
chase
shall
who
abroad
so
need them?"
Well, ' the
X
assumption
first
is that the foreign
to make
want
purchaser will want to pay. Tie
may not like to be in debt any
more than we do, but his is not a
debt in his own country; to him,
it is
a
ately
which
He
foreign debt, and immedi¬
a
new question arises—in
kind of money will he pay?
Of
francs, or guilders, but
or
we—most of us I suppose—
what
will
enough rubles, or
have
may
pounds,
want
dollars.
American
are
foreign customer
able to pay his debt in
if
course,
has
significance.
1914, we
new
.
took
issues
those
of themselves as they arose.
care
the
concern
and
concern,
30's
to
again.
;
•
What; ;are 'the
been
a
gold, we have been entirely satis¬
fied, and we have allowed that
method of payment to be carried
to a point where most of the gold
United States and
I don't think we understand it to¬
of
by which
hope to take up the shock of
unemployment after this war is
to
make
more
goods to
send
abroad.
We take it* for granted
owned
is
world
the
of
a
buried
the
sizeable block
Fort
One of the
day.
ways
that
substantial part of Europe's
a
factories, her machine tools, her
power plants, her transportation
equipment,: and so on at much
length, will have to be replaced
because they have been destroyed.
All of those things we shall be
able to manufacture and, indeed,
of many of them, we shall doubt¬
less have a considerable surplus.
An abundance of shipping is sure
fo be available. During the period
pf our participation in this war,
It is likely that we shall have
built roughly as many ships as the
world had altogether at the out¬
break
of the
war, and a large
number of those give every prom¬
ise of being safe when hostilities
are
over.
No, neither the goods
nor the means of delivering them,
;
promises to be
;
a
But there is
real one!
very
of
problem.
tionships; it is
that
had much
ing
this
one
trade
rela¬
of the factors
do with bring¬
to
about;
war
unless
the
people of the United States take
realistic
more
view
It is likely that some
of the desirable foreign purchas¬
just
ers,
like
is
credit
toward
a
this
problem in the future than
of
some
whose
us
good but whose cash is
low, will have or will be ready
to produce, goods and will want
to offer those goods in payment
for
prefer to pay in
this will provide
goods
because
labor for his
To
be
there
other
are
such
payment
ser¬
as
vices, shipping, insurance, and the
like, but they are less important
and I, don't want to complicate
the
question by discussing- them.
I want to
always
keep before your minds
fundamental consid¬
the
eration of trading
goods for goods
and, broadly speaking, the neces¬
sity of paying international debts
with
then, of
ask ourselves what will
when
us
Some
standably
the
receive
we
begin to
course, we
happen to
goods
from
of
us quite under¬
alarmed over
are
things
from this
that
might happen
competition; we become
apprehensive
reduced
standards
possibility
workmen
their
about
of
being
etc.
they
have in the past, it is likely to
contribute
mightily to another
that
countries abroad
thrown
These
out
are
of
very
anyway.
buy and
the
American
real
What I am referring to at
such length is the means by which
the customer abroad is to pay for
these goods which he wants to
wages,
living,
honest
of
jobs,
low
war.
Let
debt.
we
talk
me
I
want to sell.
was
minute
a
raised in
a
about
family at¬
mosphere that hated the idea of
debt.
Most of you fellow Ameri¬
cans' were,
too.
the place wasn't
we
knew
Buying
ment
too
we
a
plan
pr
much
A
so
mortgage
bad
could
piano
on
didn't
uiun i
eidier,
as
pay
the
it
•
as
off.
install¬
worry
worry
because
on
long
us
that
considerations, and it is no
satisfactory answer to brush these
worries
aside
they
with the
are not
statement
likely to happen
Now back in the early twenties
thirties when some of the
ing
to
Well, principally to the con¬
' that
despite
America's
great success at home in the field
of
domestic
has
pay
their
were
really try¬
debts
to
us
in
still
about
production, she
learn
deal to
good
a
A
good many Americans—too
many I am afraid—will ask what
trade abroad has to do with world
They will point to the fact
Congress has pledged the
American people to participation
in the maintenance of the peace
of the world and will ask why
this isn't all we need to do. The
peace.
that
our
co¬
I
which
with
do
to
have
foreign trade, and a desire on the
business
of
part
With
such
joint approach, it
at
the
a
advisable
seem
earliest
a
to under¬
broad program of studies
time
possible
of what European
countries could
buy from us but more particularly
we
could buy from them.
what
judgment world peace cannot be
maintained
solely
by
a
police
The
by paying for our
Navy. But
only sure peace
when the United States
share of an Army or a
will
the
that
rather
come
its obligation to
assumes
the rest
world, and I can't visualize
a
responsible
relationship that
doesn't
include
as
liberal
and
of the
friendly
well
as
attitude
his goods
of ours. It
possible
as
an
the purchase of
toward
the
as
sale
would be unrealistic, however,
to
lie
not
recognize the difficulties which
ahead for us and not to try
and provide
organization of the mechanics
the
implementing
for,
which
mendations
take
will
ent
recom¬
follow,
should be
would
and
time
of usage I am informed
shall be reduced to low-
rate
that
we
Our
years.
would
take
am
with grade deposits within another
work
to
them.
point I want to make is that in my
force—merely
I don't want you to feel that
set.
dealing- inadequately with
and have the- same
the question if for that reason I
support from their government,
am somewhat
approximate.
'
we .shall
be at a great disadvan¬
Our high grade iron ore de¬
tage. That calls for the strongest
possible
organization
in those posits in the Mesaba range have
agencies of the United States Gov-* not many years left; at the pres¬
operate with
ernment
trade abroad.
grade zinc is
Our good copper
practically gone.
deposits will be
in
ten
high
another
thing of history
There is
a
25
years.
much argument about petroleum
because of the unknown nature of
possible
but
reserves,
thorities
will
petroleum
severely
tell
reserves
strained
this
au¬
that
our
and
lifetime.
being
are
approach the scarcity
in
many
you
well
may
with¬
range
We
had
never
thought about now. In England,
for
example,
British manufac¬
turers are reported to be forming
associations to cooperate in doing
much
business with Russia.
emergency. The United States has
are
Sweden,
we
informed, proposes to estab¬
lish
Institute
Russian
a
at
the
high-grade bauxite
have
we
those
used
been
of
study the USSR and estimate its
probable needs for Swedish goods.
ber
of post-war educa¬
against them, as our
tion, I would hope that our col¬
this
in:
nickel, and for practical pur¬
poses, no tin. Our wood resources
have
area
good part of
a
reserves
no
many
the
up
limited
support of the Swedish export to
In
the
—
familiar base for aluminium-—and
University of Stockholm with the
pioneer ancestors tried to provide
are
wastefully used, and
large stands of tim¬
with little or no re¬
our
gone
forestation
placements
tion.
plans
to provide "re¬
for another genera¬
I could give you many more
leges would pay especial attention
to
training more and more of
their better students for, service
against
the dangers in a trip
which they still resolved to make.
A
in
essential
first
feasible
will lie in
developing
trade policy
wider understanding
foreign
a
American people, of
the basic principles of interna¬
tional trade as contrasted with
trade at home. If that is correct,
among '
the
it calls for a
job of education.
provide courses in the
problems of distribution and par¬
to
in foreign distribution.
well be that th$ trend
education of the next gen¬
ticularly
It
may
our
examples, but this will be enough
to emphasize the point I want to
make, and that is that the United
in the foreign trade agencies of States is passing from a country
of plenty to a country of scarcity
government.
If
such
specially
trained
men
are
to be attracted to
public service in any considerable
numbers,
they
must
be
party,
serting
I have no hesitation in as¬
that it is the very high
quality of the Civil Service per¬
sonnel in Great Britain which has
contributed so much to her effi¬
ciency
seek
ought
it was in the direc¬
tion of production. I need hardly
remind one of the great Western
states of the consequences of the
establishment
of
the
so-called
Land
Grant
Colleges after the
Civil War. I am sure you will re¬
member the Merill Land Grant
Act of about 1870 which set aside
the Civil War,
the
income
from
large
areas
of
lands for the creation of
schools of higher education which
public
in the language ; of' the
"Teach Agriculture arid the
should,
Act,
tral
and
Most of the cen¬
western states took
vantage of this Act.
encour¬
reasonably fixed
and inde¬
of
shifts
of political
a
ad¬
In the three-
quarters of a century which fol¬
lowed, tens of thousands of stu¬
dents have had an intensive train¬
let
But
the
We must
in government,
similar standard
to be as sharply'
marked in this direction as, after larger scale.
eration
be
aged to expect that their jobs will
pendent
colleges should be encour¬
Our
aged
Mechanic Arts."
and
up
clusion
of
goods.
But
to?
a
people.
sure
of
has
in
if he
may
he
means
cash
Even
ours.
hand,
abroad.
a problem and a
It lies at the heart
international
our
that
at
Knox,
Kentucky.
we
is
by
all add
Now what does this
businessmen
American
less
mouths.
our
on a
much
again to
practical problem of foreign
me
go
back
As
the
erals
field
and
It will be
have
of
which
on, and
to
of
we.
some
and
critical
said, of
reserves
terials
metals
other
min¬
supplies.
course,
that
low-grade
could
fall
we
ma¬
back
extent {we could,
but at muchi higher cost and with
great difficulties.
an
•>
Confronted
by
emergency which taxed our re¬
sources
of
portation
which
ency,
these
we
and
manpower
we
selves in that
happy position with
have
met
there
and
trans¬
would not find our¬
this
are
materials
in
emerg¬
of
several
which
would be defenseless.
we'
It may not
be
trade.
the
in
I have
basic
make
clear,
underlying
diffi¬
tried to
and
culty in connection with our for¬
eign trade is that, to put it mild¬
ly, we have no enthusiasm about
receiving goods from abroad. Ob¬
viously, the only other method of
balancing our exports, if they are
to be balanced, is to have our
'foreign customers, and that in¬
cludes Canada, pay us, as we ex¬
press it, "in cash." I have empha¬
sized the inability of most of our
foreign customers to pay in, cash,
and even if they could, its useIessness to us merely as cash.
If
stressing the point too far to
suggest that we are moving in the
direction in which England has
found herself, that of
having to
depend on imports of material
from abroad in order to maintain
her very
lifeblood of existence.
It is this line of
has made
me
so
reasoning which
keenly interested
in the proposal advanced by a few
of our soundest thinkers in this
field; that is, that we make every
effort to import all of the critical
materials
abroad
which
and
use
we
as
from
can
little
of
our
precious remaining supplies;
Accepting this national policy, we
own
should
say
to foreign countries,
still
rich 1 in
natural
resources,
essential,
will
ship you all of the
then you can't get away frqm the "We
from coming in, we said, and none industrial
need to bring in goods to balance manufactured articles which we
of these calamities will confront and it was their good training as
the goods we ship out. We're not have in surplus and which you
much as anything else which has
us.
likely to be able or willing to want, provided you pay us. in the
I shall not
attempt here to dis¬ been responsible for the phenom¬
raw materials of
which you have
bring in enough goods to offset
cuss the detailed
questions of high enal advance of the United States
an
exportable supply.
But
we
the goods the rest of the world
tariff versus low tariff—because as a producing
tariff versus low tariff—because as a producing nation. Indeed, it
will want, and what is more im- want those materials to be mateyou may think I am making a free my conviction that while we have
goods, our answer was decisive—
higher tariffs. Stop foreign goods
production of
goods and food stuffs,
ing in the field of
you
accept the principle of a bal¬
anced
trade
budget
as
Volume 159
rials which
Number
in
can use
we
THE COMMERCIAL & FINANCIAL
CHRONICLE
4246
our own
economy," That would, of course,
sharply reduce our emphasis on
gold as a means of payment. We
would then
as
bring in
nancial
much
and
more
I
and
programs
can
is
as
limited
our
much gold
as
needed to maintain
we
only
needed
industrial
assure
our
to
fi¬
as
meet
demands,
contribute
The acceptance
largest, possible volume of
as desirable, will
not be easy, for it is at variance
with the views which so many of
us have held for so long.
But will
you not agree that new and more
statesmanlike
thinking
on
the
part of all of us, will be a vital
part of our responsibility when
paying
ships which
during this
which
shall
we
have
for
and
war
I
of the principle
of the
plus
a
materials—that the
raw
sulting surplus would
re¬
depress
American prices as to vitally af¬
fect our own economy. This is a
valid objection and must be met.
It
be, by the decision to steri¬
can
lize
freeze
or
and
so
above
the
surpluses
normal
our
over
import
needs, retaining these materials
in a stockpile not to be touched
except
in
a
case
of
national
ditures will
emergency. " It
to term
tfyese
sons
in
fashion
the
'
as
and
same
to
sacro¬
would other
we
and
another.
in
we
ture.
;
1944,
Navy
subject to release only
declaration of a national
or
the
emergency, by the President, or
some other
method, is not for the
moment pertinent. I
merely state
principle that they must not
allowed to overhang the econ¬
the
be
of the country in any threat¬
omy
ening fashion.
Now
of
what would be the
this
policy?.
Well,
certainly continue
duction
of
our
effect
would
we
limited
a
pro¬
natural
own
re-
1
but that limit would be
judged in the interest of national
sources,
defense, and not in the interest of
a
community or a block. The im¬
portant thing is that we would be
replacing those resources which
had
we
would
and
difficult
statesmen
of abundance
who
believe
an
economy
distinct from an
as
day; we would be bringing our¬
selves back by degrees to that
po¬
sition where we have been in the
and
position where
that
the
had
we
in every dictator
the
ore
to
pay
levels,
a
these taxes
and
me
that
.
there
will
who, hating andTearing
Is
war,,;
This is under
to
it
that
railroads
jected
to
regulation
but
will
attract
will
unfair
be
to
given
them
chance
a
to
and
the
"fair
been
freed
are
a
special in¬
state, the trans¬
,
I be¬
new
to
the
courts
in
offs
and (in some cases)
special
amortization charges over a per¬
iod of years to cover the older
items of "excess cost."- It is
pos¬
sible that these annual amortiza¬
were
ever
vital in the de¬
velopment of this country, and
they have proven to be absolutely
.essential for the proper conduct
of the
war,
They are just as
necessary in peace. In good or bad
weather, fogs or snowstorms, they
carry the
people and the freight.
In
contrast
existing
to
during
the
the
conditions
First
World
tion
not
are
'
1
under
;
:
eral
•
position
on
While
methods
to
of
many
commissions have shown
sition
co-operate
a
with
of
dispo-r
Wash¬
regulations which would eventu¬
ally convert plant accounts to the
of
against
original cost, it
the
no
circumstances
offer to
an
may result from reduction of the
rate base.
possible
And it
that
always remains
Congress
or
the
State Legislatures
may enact
new
laws to clarify the whole
regula¬
tory picture.
•
any
appears
be any
'
(Special to The Financial Chronicle)
ST.
LOUIS,
MO—Robert
it
rates
future.
the near-term
downward
trend
over
The
which
has
slight
interruption ,,for
decades
but
both
must,
self
to
ate
as
■
prevailed
will
with
doubtless
commissions
the
several
North Eighth
the
New
Stock
courts
Court
and
Exchanges.
tative
for
merce
Bank
the
it¬
emphasizes, give due weight
healthy corpor¬ prior thereto
existence—including the abil¬ Bro. & Co.
maintaining
Street, members of
York
a
&
and
leaves
those
strength
be
policy?
I
cannot.
Once
patriotic
quite
am
the
are shocked
their
vast
fast being
the
Trust
was
Holders of the Corporation's Common Stock were
given pro rata rights to subscribe to
105,032 Shares of 4>2% Cumulative Preferred Stock ($100 Par Value—Convertible
an aggregate of
prior to 1954) under terms
Prospectus. Such rights expired at 3:00 P.M. Eastern War Time, January 10, 1944. This
announcement relates only to 27,272 Shares which were not subscribed for
through the exercise of the rights.
outlined in the
its
that
sure
a
»
($100 Par Value—Convertible prior to 1954)
it
peo¬
realization
natural
resources
dissipated, it should
be easy for them to
accept a
tive program of
Price $100 Per Share
posi¬
exploitation of
imports of these
critical
same
ma¬
terials under restrictions
by which
these imports can be made use¬
and
f—
had for
able
on
not
to
a
harmful.
this
'abroad
a
—the
the
manufacture
a
program
which
that will
those of
on
I know of
time,
,
•
•
.:
,
I-'.
may
be obtained from only such of the undersigned
by which
.
one
1
"its
:
.
;
,
; - 01
Harriman Ripley & Co.
re-
Incorporated
Blyth & Co., Inc.
*
Hornblower & Weeks
Smith, Barney & Co.
other practicable
we
can
do
to
lay
two
and
the
Lehman Brothers
same
a
good
foundation for sound international
relationships,
•
rest
our
desirable things, at the
the
■
as may
these Shares in compliance with the securities laws of the
respective States.
>
<
inexhaustible
gre
no
')
sale
ity of the American people.
very
;
largest
and
industrial skills and ingenu¬
means
legally offer
aggressively
for
program
sources
U'.'i
Copie$ of the Prospectus
,
forward
fundamentally
,
it
large
buying power
something we haven't
long time—we shall be
go
possible
abroad,
Co.,
with
solicitation
national
American
into
as a
other
to
January 13, 1944.
Merrill Lynch, Pierce, Fenner & Beane
was
Mercantile-Com¬
41/2% Cumulative Preferred Stock
country
things vital to
a
offering of these Shares for sale, or as an offer to buy, or
of such Shares. The offer is made only by means of the Prospectus.
Louis
represen¬
a
as
strong as possible?
policy which exhausts these
•With
St.
Mr. Ewin
continue, formerly Southwestern
and
Supreme
only
United Air Lines, Inc.
war.
.•<
B.
Ewin has become associated with
unlikely that there will
wholesale, sweeping reduction of Dempsey-Tegeler
&
Co.,
407
electric
105,032 Shares
;;
.
Dempsey-Tegeler
New Issue
-
resources
ful
.
Robert B. Ewin With
to be construed as an
buy,
ef¬
worst
the
ington in enforcing the accounting
basis
taxes
.
necessarily bound by the
definite
become recog¬
legitimate
charge
may
a
fects of any severe rate cuts
which
has
rest"
to
hd\)e" regulatory
perhaps ."nine-tenths
charged by utilities
rates
the
as
commissions and
theory
laid
ahead
which
of
charges
nized
utility commissions
go
over
utility industry during the
or so has partially surr
to the "original
cost"
the
value"
state
power
has
some
against earnings, which may
help
to offset the lowered
rate-base.
Moreover, for the present most
companies are protected by Fed¬
principle.
But
for
A number of
security offer¬
ings (both refundings and sale of
stock
holdings) have been ar-<
ranged after substantial write¬
war.
"quietly
and that state
unused
idea.
(Continued from page 168)
way for "very large possible
reductions" in electric rates.
He
now
bonds.
financing
rendered
con¬
valuation.
Railroads
con¬
The
the
said
of
past year
to
country
capital
common
years.
to
continue
the
serve
it has in
as
almost
sub¬
competition,
taxation,
improve their services
peace
method
capital, all of which
permit
tinue
This
been
new
of
convertible
even
see
excessive
or
new
not
are
obtain
en¬
an
fundamental institutions than
before.
we
of
ourselves
are
of
the
,
part of
prudence ' that,
while
hating and fearing war, we make
common
ple
that
views of the Federal
commissions,
especially as the Supreme Court
has indicated that it is
taking no
preparing for
not
that
certain
lightened public opinion will
country
is going to
emerge
from this war with a
firmer determination to hold to its
be
will say that this is
of
feel
to
issuance
our¬
another
bare
in freedom
dictatorship in America.
lieve
Wise
if
I
be necessary,
...
Being
common
carriers,
they
handle
(Continued from page 173)
any shipment offered to
There never was a time
ing to have a national debt of them.
when railroads had such a keen
stupendous
proportion.
Tha.t
'sense
of responsibility
means
for fur¬
heavy taxes for years to
come.
good
Some way must be found nishing
transportation
as
to
expand our national income they have now.
any
It does not
possible future attack.
a
.
And
conditions
through
stock, or
pro¬
duction techniques to defend
to the fullest
against
Can
:
portation companies have always
oeen
the first to be absorbed.
I
do not believe we are headed for
Railroad Performance?
prewar
"capital" there is very
little ability even under
existing
as
materials
and
selves
some
.
terest in these
problems, because
would
we
the
manpower
disturb
possible
load that may
any
,
economy of scarcity.
We would
be making provision for a
rainy
a
■>
The railroads have
Wfiat's Behind Present
beyond
in mind
part it
is
be sure that the
exhausting
and
tending to bring the
United States back to
past,
as
principles, and
widespread productive
employment.
citizens.
far
the
been
be
know
quickly
preserve American
aspects of
and
as
government
to promote
problems, and, praying for
Guidance, deal with them
business
Wartime
stake in the solution of the
post¬
war problems in such a
way as to
Divine
as
en¬
a
everywhere, representative groups
as this one
is, must grasp firmly
on
be
opportunity and enterprise, have
gentle¬
those
ity "to attract capital".
If the
Supreme Court had common stock
Every industry, and all Amer¬
icans
can't in the fu¬
challenge of
hard
After the
should
large employment.
men, iif in many respects greater
than any which has faced us be¬
fore.
Groups of - thinking men
the
it.
safety. If these things are
done, I foresee ail extended period
of great industrial
activity and
We
of
national
security.
Whether they should be put in the
keeping of the Army and the
weapons
do
with
v't.;;-)-v.-;;;'
The
view.
be relaxed
have been able to afford that
past;
about
than
objective
to
group
the whole organization is
doing a good job, and is en¬
thusiastic
enterprise,
regulation and restrictions Should
Our
dallying here at home; of our ly¬
ing down on the job when their
very lives
depend on what we
produce for them; of the pulling
and hauling between one special
"rational
excesses.
stockpiles".
emergency
treat
them
sanct
might be desirable
other
couraged
fighting men are all too fre¬
quently annoyed—and that puts it
mildly—as they read of our dilly¬
the
not
industry
war,
of
in
income
productive
great price for that vic¬
industrial
leaders; we
won?
War,
now
increase
by the venture capital of the peo¬
ple. Certainly government expen¬
surmise that this great group
may
American
to
way
181
playing. You can
entire
industry is keyed up to
created, developed and expanded continue to do its utmost to
carry
live in and work
in, than it has ever been before.
interest
no
are
is
country
such
national
our
cargoes will be shall be heavily in their debt to
hard to find when the war is over. do our utmost to make this a bet¬
It will, of course, be immediate-1 ter
I
of'
through
adequate
ly said that this country couldn't
absorb unduly large quantities of
know
to expand and attract
venture capital. Tax laws should
be reformed with that
war
tory—as
to
enjoy
the
standard of living.
two-Way trade
this
built
tinue
larger employment
of American workmen. \
that those
demands are very limited.
Inci¬
dentally, this would be a distinct
help toward occupying those sur¬
you
to
v '
and
Francis,
*
(*
THE
182
America Faces Great Decision-Peace
ment
construction. In this trust,
Says Negotiation Is Only
Without
Hartmann
Victory Or Victory Without Peace:
wealth of this nation down
"the foundations of peace can be laid if
ended by negotiation, leading to a treaty not imposed by
is
war
side
.mann
imperfect as ft certainly will be, accepted by all.
speech delivered at Carnegie Hall in New York City, Dr. Hart-
a
said that the
organization he heads "assumes
<♦>-
of
showing
our
merely re¬
that pecularity of our
system by which a fast air¬
ferring to
that the
decent
the responsibility
But he was
morrow."
fellow cit¬
izens
the
one
the other, but,
or
In
Dec. 30 that
on
time
peace
our
diction
of the Peace Now Movement,
W. Hartmann, Chairman
Dr. George
destruction,
but
may
the opening and dawn
We im¬
proclaims
ter ventionism in Europe
an
endless
lives
opportunity to pour the
youth and the
of American
war's
to the
until we awake
of this course, we have
themselves united to Us in love been stigmatized as isolationists.
I confess that if I had to choose
and work for peace."
the honest and model
That means that we in the Peace between
Now Movement have the definite isolationism of Professor Charles
approval of the Pope, even if we Beard and the elder LaFollette
don't as yet have the endorsement and the New Deal variety of neopart
Basis For Determining
Foundations Of Peace
asserted
that military in¬
is merely
it
of a
new
era
of brotherly reconcilia¬
tion, and peaceful, industrious re¬
and
ter
mark
paternal Apostolic Bene¬
to all those who feel
.
abyss
futility
of the imperialism, I should be proud to
White House, the Kremlin, and 10 be-ranked with the isolationists,
Downing Street. I wonder if some even at the price of being dubbed
a
"cheerful, idiot.". But, our real;
newspapers will now start a rumor
the
of
that
present
we
occupants
Jesuits in disguise, or
are
X
'
•
.
*
! '■
k
1 1
'
Thursday, January 13,1944
COMMERCIAL & FINANCIAL CHRONICLE
position is far more
Lloyd George once said that a
had a clear legal title to a
man
piece of property if he could trace
without
back
it
who
man
someone
are
a' break
the
to
originally stole it from
else. The Have Empires
simply
those
who
did
their
stealing by brute force yesterday;
the Have-Nots those who are try¬
to imitate, them today.
To
augment the right of prior seizure,
have invented the fiction that
ing
we
"from
now
on
wicked" to
it's
without looking
into the moral basis, if any, of our
own claims. ■'
v
'v
seize
'•>/:
territory,
Failure
to
create
even
an
ap¬
accurately de-. proximation to world-wide equal¬
scribed as Social Reconstruction-: ity of economic opportunity—an
of the Vati¬
essential ingredient of true democr
=./a'.,,.v v.- ism, which can be used to stop the
racy—is the underlying cause of
rive in another tonight. We mean
One of our main jobs is to show war anytime; which if it had been
Hiterlism and its Japanese equivamore than that.
Just as the Pres¬ Americans that
they can have adopted in advance, would have
lent.
Leave that problem un¬
ent was determined by what we
either Victory or Peace — they prevented the war altogether; and
main jobs of
did in the Past, so the Future will
is : still
the only means solved and the phenomenon Will
cannot have both. Toivin the war which
the
Peace
soon
be shaped by what we do now.
re-appear
as
Schmidtism,
is the surest way to lose the peace. whereby at any time (that means
Now
Move¬
Those folks who want Peace in
Muellerism; or HassenpfefferismV
That's why we oppose the absurd1 now) the basis of permanent peace
ment
"is
to
1950 but who favor war in 1944
can be established.
<
■■ '
/-■ ;•/
< If we were the victims, it would
policy of "Unconditional Surren¬
show
Ameri¬
What does economic reconstruc-: Come forth as Jonesism, Goldbergforget that we reap what we sow. der"
which
the
Germans
and
cans that they
Just
now
we
are
planting the
tionism require? Primarily it de¬ ism, or O'Sullivanism. I don't see
Japanese interpret as meaning ab¬
can
have
seeds for another bumper crop of
mands a recognition of the forgot-: how any liberal, radical, or con¬
solute
slavery
for
themselves.
either victory
servative can deny the truth of
hate and blood and tears.;
y
y:
Would you not think the same if ten fact that between the Great
«'f"'
'.>)•'wi-"a
or
peace—
; % //_/? :'/■/,;
•••; r :• ..-I'
ts<
•-■
Depression of the early /Thirties ■this analysis.,
you were forced to accept me as
they cannot
Because all the warring nations
If there were no alternative to
the
dictator
of.. your
family's and the Great War of the Forties'
have
b o th."
what is called a "light to the fin¬
there is a close casual connection. have been selfish and stupid in
future career? Small wonder that
He
expressed
Our capitalist world order did not roughly equal measure, we must
ish," the outlook for the world
they prefer to fight to the bitter
Opposition t 0 George W. Hartmann
now
would indeed be black. But there
spend one-half of our in¬
know how to abolish unemploy¬
end, with all the added misery
the
"absurd
'
is an alternative. The foundations
ment except by giving the people comes murdering one another. But
that entails for all mankind.
policy" of "unconditional surren¬ of
—we
can wage peace as well as
peace can be laid if the war is
Of course, Mr. Roosevelt
has guns and - sending them off to
der" and contended that "social
ended by negotiation, leading to a
shoot each other.
Prosperity re¬ war, Its weapons are action, not
just said it does not mean slavery.
reconstruction" is the only basis
turned as soon as the killing be¬ fireside talks, toward the satisytreaty not imposed by one side or But what
positively does it imply?
for establishing permanent peace.
the other, but, imperfect as it cer¬
ing of human needs, and the end¬
Our
democratic
rulers, who so gan; and as soon as the killing
He further stated that a mutual
ing / of
misery
and
privation
tainly will be, accepted by all. The
ceases, the depression cycle starts
dearly love to share their plans
give-and-take is what a nego¬ Peace 'fsTow Movement assumes the
: V
That's why so many per¬ wherever men are found.
with the public, refuse to specify again.
tiated peace requires, mentioning
sons of high and low estate trem¬
responsibility of showing our fel¬ any details.
The secret treaties
these
four points: Lower trade
A' World
Peace- Conference
low citizens that the decent peace
ble- at the
very
thought of an
and agreements for the division
barriers, end the colonial sys¬
they so ardently desire can be won of the
Early Peace.
In 1933, the world should have this as its primary
spoils, if generally known,
tem of modern imperialism, end
item of business. The United Nar
was hungry even though food was
only by negotiation/A determined
might make us less eager to con¬
military conscription everywhere,
effort. to end this war involves
so plentiful that we
destroyed it tions and, the Axis Powers all
tinue the meaningless slaughter.
and
leave
individual countries
have something to lay on the table
on a grand scale, rather than give
creating a public opinion which
Secretary Knox tells us officially
to decide whether they wish to be
will press our Government to ar¬
it away to the needy. Now in 1943 for the sake of a new and better
that
the
British and American
independent or amalgamate with
we
destroy human beings with order 6f things:
range for an Armisticey Consid¬
navies will "police" the waters of
others.
/y';-:/■■:;
1. Lower trade barriers, so that
erations of Reason, Hifmanity, and
the globe, the British Navy ruling plenty of ammunition in order to
Dr. Hartmann is Professor of
avoid making overdue changes in every country has full, free, and
Self-interest all favor this step.
the East Atlantic,
the Mediter¬
Educational Psychology (on
In support of this assertion, allow
our social institutions.
The logic equal access to the food and raw
ranean,
and the Indian Ocean,
leave),
Teachers College, Col¬ me to
quote from the Pope's radio while the American fleet handles of the two situations is identical. material resources of the world.
umbia
University and Visiting
It is no accident that the New Here America makes the greatest
message to the world last Septhe West Atlantic and the entire
Teacher of Psychology, Harvard
contribution.1 ;>.;// -'
V-'..*■ ■
tember :lst:/■' y
vast Pacific.
The privilege of be¬ Deal,' which began by killing pigs,
University,.
-'v.- 'V .' \':hy
2. End the colonial, system of
"More
tormenting than ever,
ended by killing the children of
The text' of his address, sub¬
ing water cops will not be shared
imperialism. Here
the
there comes to soften the minds
Europe and Asia. Similar policies modern
by any one else.
Indications are
stantially in full, follows:
must' make the
and
hearts
of men
the doubt
led to the same results in other British Empire
that Russia will control all, the
The National City Bank esti¬
whether the continuation of hos¬
countries.
greatest contribution.
;i
• 1
//.■>. ,:/.Ak.
Balkans (notice how the Stalinist
mates that the war has already
3. Countries recently occupied
Just
as
domestic
unrest
is
tilities can be said to be still in
Tito in Jugoslavia is being played
cost the world over five hundred
traceable to gross inequalities in must be allowed to decide for
conformity with national interests,
billions of dollars in expenditures
up and Mikhailovitch forgotten),
themselves whether, they wish to
or
reasonable and justifiable in
dominate
Scandinavia, and be¬ income, so international turmoil
for material and equipment alone.
the light
of the Christian and come master of Central Europe, grew out of the division of coun¬ be independent or to be amalga¬
This figure does not include prop¬
human conscience.
tries into Haves and Have-Nots. mated with others., Here the Axis
./ y
;
■
All Africa is to be in effect a Brit¬
erty damaged or destroyed during
"... Real strength need not
Simple statistics demonstrate this. Powers will make the greatest
ish
colony and the nations of
military operations.
If the war
A:- ■■V.'-//v a ■>■■':■/ ■//'■ ■
fear being generous.
It always Western Europe fall within the We have 16 acres per inhabitant; contribution.
lasts another year or so the total
4.
End
Military Conscription
has the means to secure itself
British sphere of influence.
direct money cost will approach
Nice Germany proper: has 1.8 acres per
On this all peoples
inhabitant; Japan 1.3 acres per in¬ everywhere.
against any misinterpretations of
the incredible sum of one trillion
going, Winnie, Joe, and Frankie!
;
/
/
its readiness and will
habitant. Yet 2 V* acres of produc¬ can gladly unite.
to make
Of course, this is not an imperial¬
dollars
an amount more than*
Such mutual give-and-take is
peace, as. well
as against other ist war. It almost seems that when tive land per person are required
sufficient to have bought or re¬
possible
repercussions.
Do
not F. D. R. took his oath of office for self-maintenance even under what a Negotiated Peace requires.
placed every bit of physical prop¬
the best agricultural technique. If Think what this might mean. The
shatter or smother the people's
he swore, "I did not become Pres¬
erty (including commercial land
yearning for peace by acts which, ident of the U. S. in order to pre¬ we Americans had to live as peoples of this tiny planet can
values) on the entire globe.
come to view themselves as one
instead of promoting confidence,
side over the liquidation of the closely packed as the Germans, we
The
total public
and private
They can-all put their
rather give new life to the fire of
woi^d all be confined to the area family.
British Empire." ■
'
•
wealth of the U. S. before the war
of the
two
hate and stiffen the will to resist.
adjoining States of shoulders to the wheel in the con¬
Such is Power Politics today.
yvas about 300 billions—an im¬
Give all nations the well-founded
Texas and New Mexico.
Only if quest of poverty, ,-vice, crime,
be
can
plane may leave one
won
world tomorrow
part of the
at
morning and ar¬
least paid agents
can..' "..
only by nego¬
tiation"
and
that one of the
.
v■:/
-
.
■
•
.
•
.
•
.
■
,
<
—
expected to be the
mense sum now
size
of
national debt when the
our
conflict
ends.
triumvirate carves up the
the U. S.
contained the entire
of the world without con¬
population of the earth would it
sulting 'the home folks or those
be as densely inhabited as Japan
affected by their deals.
No one
The
a worthy : peace, which
shall not offend either their right
hope of
new
map
disease,' after they
War, the. greatest
We have plenty
enemies to conquer
ignorance, and
have
overcome
Evil of them all.
sense of honor.
of
natural
is today.
;
beyond all possible
pretends to ask the Finns or Poles
without
including our potential
conclusions agree if
Now it is true that a nation does
they want to join the Soviet
and Germany together have al¬
friends.
Yet we stand frozen on
honestly with your principles, that Union.
They just happen to live not need "living space" if it has
ready lost as many men as all
the threshold of a world of beauty
your acts respond wholly to your in Finland or Poland.
It's about "trading space.": But a nation must
countries combined lost in World
and abundance, and refuse to en¬
declarations for a just peace.
time some
of us realized that have one or the other. The great
War I. The food blockade of Eu¬
ter it.;
■. •
"Only thus will it be possible to Adolf is not the only Hitler who curse, of our age is that the Haverope and the man-made famine
What are we waiting for?
Nots have had neither. The Haves
a
serene
atmosphere in pushes',people around.
in Bengal have probably caused create
'
Are we afraid of Peace Now? r,
The brutal slogan of Uncondi¬ refused to cooperate in remedying
the death by starvation of a popu¬ which the peoples less favored at
a
difficult
Is there greater satisfaction in
situation, but made
lation equal to that of New York a given moment by the fortunes tional Surrender is a substitute for
of war can believe in the rebirth thinking about definite proposals. matters worse by tariff barriers a military march — or a funeral
City.
and growth of a new sense of jus¬ The term does not specify what and restrictive immigration.
crawl—to Berlin and Tokyo?
Wild jungle beasts never caused
But
men are more
the goods they can
fraction
other
Russia
to
live
Make
or
their
clear
doubt that your
.
.
a
valuable than
create.
as
to each
to himself
Yet the nations
such
of
man
woe
causes
tice
the nations,
among
draw
from
this
trust
and can
is
the natural
of
a
surrendered, but suggests that
everything is to be given up and
that the defeated population wiR
confi¬
and his fellows.
dence in the future, without hav¬
still fight on.
We have met tonight to ask one ing to fear lest they compromise
the survival, the integrity or the
simple question: Must the killing
consequence
greater
have
to
.
go
honor of their country.
on?
Most supporters
of this war say
believe in peace—but they
seem strangely reluctant to bring
it to pass. The N. Y. "Times" de¬
clares unhumorously that this is
they
"Blessed
are
crusade
Christmas
?
help to pre¬
pare the soil in which may sprout
and flower, grow and ripen the
sense of international veracity and
quered.
/Mr. > Roosevelt,
Movement is so
we
agree
with
that, "today, is ,,tp-
halted.
"May this year (1943) not pass
stamped and blackened- by slaugh-
race," threaten^
over the con¬
Neither does the slogan
who
rendering.
to
because
crumbs
our
do the sur¬
German Army
generals? The Nazi party leaders?
The workers?
The farmers?
To
insist that the entire population of
a nation
surrender entire control
over their economic and political
destiny is pure despotism, even if
so-called
democratic leaders of
other
countries make that in¬
indicate
Spirit.
The Peace Now
named
rags
part of a "master
ing to tyrannize
they who with dis¬
interested resolution,
perpetuate
the justice;
blessed
are
they — to
Before long I whichever belligerent group they
expect to see Dale Carnegie ad¬ belong—who, with no less impar¬
vertising that the real way to tiality and with their gaze fixed
make friends with a man is to on reality, collaborate to overcome
murder his wife and maim his the deadlock in which today the
fatal balance of war and peace is
children.
a
accept whatever
statesmen care tp
leave them. We should be ashamed!
of ourselves for thus playing the
and
is
to
The
credible demand.
■
-Because the Peace Now
Move¬
threw
Is this the Way to the Good Life
"appeasement," for ourselves and others?
they effected one of the slickest
Must more babies be blown to
derailments of public thinking in bits?
More historic shrines like
the history of intellectual sabo¬
Heidelberg and Florence turned
tage.
This is a bogus concept of to ashes?
More dead washed up
the" issue.
It is not a question of
along a distant shore?
appeasement, but one of restitu¬
If you love Power and Revenge
tion— of restoring to the Haveyou will say yes.
But if you re¬
Nots the inalienable right of every
spect your fellow-man, you will
people to fair/free and equal ac¬
try
to reach an understanding
cess to the food and raw material
with him from which both may
the
When
warmongers
the switch labeled
resources
isted
teenth
of the World, such as ex¬
during
most of the nine¬
By
artificially
century.
creating scarcity, we created war,
for "when goods can't cross fron¬
tiers, armies will."
Because
terday we would not allow
surplus cotton to be spun
clothes,' we are today using
guncotton for explosives. .
yes¬
our
into
our
gain.
solemn choice.
both Victory and
Which shall it be: an in¬
This is indeed a
We cannot have
Peace.
glorious and empty military
tory over a less numerous
with poorer resources—or a
but
Peace which might
Victory for all Mankind?
noble
mean
Vic¬
foe
hard
Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4246
-Our Reporter On
*
...
,'"y "'
■,
be managed
in the regular two to three-day interval and would
permit the Treasury to stay out of the market until next fall..
Governments"
By S. F. PORTER
183
.
and
.
And in the fall, a sixth war loan is likely.,
Whatever its name,
it would be a war loan as far as technical features are concerned and
.
'
This is being written in
.
Washington, where I have been inter¬ it would be in the multi-billion dollar class.
And that would finish
' » •
viewing ^financial authorities and Government officials to discover the year, it is forecast now.
Of course, this is tentative.
the probable pattern of. war financing over the coming months and
And so much depends on the
the general expectations for the Fourth War Loan,
.. The
main course of the war, on the level of the market, on the rate of War
impression which 1 received after several conferences was one of spending.,
But a logical expectation at this time, to recapitulate,
■"ll
optimism. \
More optimism than is discernible in usual New York would be:
■■■■,:;.,y—-r, 1
Fourth war loan this winter.
circles.
More confidence in the huge success of the pending war
loan.
Fifth war loan this spring.
;
More certainty that interest rates will be maintained at
Bank borrowing in summer.
present low levels and bond prices will be held at current high
Sixth loan this fall.
marks.
To put it succinctly, unless the many experts in this
,
,
.
.
..
.
.
.
,
,
.
,
.
■„
.
.
,
,
.
.
.
.
.
...
.
.
...
the
>es,
of
Government
market
is
finance
by
the
and
shape
excellent
in
blinded
are
their
own
for
chances
a
ich-greater-than-anticipated subscription on the fourth loan are
■;Y Y"' ■', .■
':'Y;-j' ■':< y ■
. Y:
y Y.
Specifically, every interview confirmed the statements made
in this column since November that the,2M% bond issue would
be the most popular sold by the Treasury in many, many months.
Belief here is that both insurancce companies and corporations
will favor this bond, despite its lower coupon rate and its
shorter maturity.
Insurance companies not restricted to the
substantial. ,lY. /y;\
.
,
.
.
.
higher
%Yz% rate because of their special position and need
for the return will move out of the ZlA% range this time and
into the 2Ms.
Y, And also as remarked here, it is generally
admitted that the 214% coupon and range has been overplayed
by the Treasury in recent financings.
...
.
,
.
be
a
fairly stable market—which is
fair enough assumption
a
stage of the war and financing program ■— the 214s should
% to Vz premium level within a comparatively short
the
at
period.
*
...
.
.
.
.
But
.
in
Washington
loan to date.
000,000 will
.
.
there
appears
to
be
.
be
the
might
New
York
have
would
bankers
be
to
said,
/sold' to the
The plan for
banking
the
.
.
.
.
.
,
under
sound
manage¬
ment, and the benefit of a wide
dispersion of hazard, could be ob¬
tained," the bankers suggested.
Capital Corporation Proposed
"There is
no reason why such
corporation could not function
A
plan for the creation
of
$500,000,000
a
Industrial profitably/ particularly if it were
given the right to set up adequate
reserves, before taxes, during good
years to meet such losses as might
National
Credit Corporation to provide risk capital
for-existing and new busi¬
ness ventures
in the post-war period was outlined on Jan. 4
'by
Herbert F. Boettler and John W. Snyder, Vice-Presidents of the First
National Bank of St. Louis.
ness
in
accrue
of
a
The plan, it is indicated, is an outgrowth
speech made by Henry J. Kaiser, West Coast shipbuilder, in" St.
Louis
on
Nov.
19.
Credit^
The
Corporation would function along
v
y
■:■.•
"measures must be taken
now:
to
the lines of the Reconstruction Fi¬
provide risk or venture capital for
Corporation.
private enterprise.
I
"Restrictions' on private indus¬
Regarding the further working
out of the plan, advices from St. try, together with the effects of
Louis Jan. 4 to the Chicago "Jour¬ high taxes, have practically elim¬
nance
.
nal of Commerce" said:
inated. the normal
.
.
sources
in
an
informal
discussion with
a
steps
to
busi¬
life
the
of
corporation
would be limted to 15 years, with
10
additional years for orderly
liquidation,"
Mr.
:
Kaiser's
v
talk
was
referred
to in these columns Nov.
25, page
2108.
.
'
.
vY
'
•
Feminine
Right To
"Pretty Up" Upheld
.
take
of adverse
of risk
"The day after he made the capital.
Accordingly, it is
speech the industrialist confessed highly imperative that private in¬
itiative
years
conditions.
"The
overcome
these
The feminine right to "prettyhandicaps so as to make
to
industry sufficient up" before leaving a job was up¬
posed credit pool.
He expressed venture capital to provide the held on Jan. 6 by the Regional
Labor
Board
at
possible employment of War
the opinion that banking, life in^ fullest
Detroit,
labor
in
constructive
business Mich.,
which ruled
that
7,000
surance, organized labor, Govern¬
women war workers at the Pack¬
YYY- ; .Yy
ment, and industry should partici¬ projects."
a
successful war
It is anticipated that $17,000,000,000 to $18,000,raised from sales within the fourth war loan
be
the
a
of bankers that he had not
worked
In New York during the last few weeks, the guesses about
possible subscriptions to the fourth war loan have been relatively
conservative.
.
Post-War Risk
group
TOTALS TO BE RAISED?
widespread opinion that this will
stock
banks without special legislation,
"The idea for the corporation,
available
.
of
....
...
»
at this
instead
a
.
:
An
explanation for this, incidently, is that some insurance
companies and corporations really need the higher 2 Vz% coupon.
. y
They can't afford to shift into 214s, despite their own desire for a
.different maturity and for diversification of their portfolios.» .
Thus, it was said by one individual with unquestioned authority,
that "why not offer the bonds and let those who need them, purchase?
The others may take the 214s, if that's their choice and the only
result will be that there will be a larger total, of 214s and a smaller
total of 2 lks this time". .;\ The comment makes sense but it indicates
too, that the fourth war loan will contain the last 2% % bond.
.
..
At. least, for some time.
Getting away from the official comments and into market con¬
versations, the. feeling is .the 214s will sell at a nice premium
within a short..time after offering.
Y;y Perhaps the market will
start out slow, Tor that is the pattern established recently by a
combination
of factors—ranging from
official wish for a slow
premium start to the liquidation of speculative positions.
V
But
assuming
If
.
.
'
.
bentures
facilitate formation of the corpo¬
ration and permit sale of its secur¬
ities to insurance companies and
industry,
corporation was regarded as
'big bank' proposition and one
you examine that prospect, the chances seem better
and
better for broader bank buying in the open market and for
support which might not be of much in¬
of the price level by institutions unable to invest sufficient of their terest to country banks.
"In carrying on its work, the
funds during loan campaigns.
M
And if you carry on from
there, it seems fairly certain that corporation would have power to
the interest rate level—which means the
price level-r-will be main¬ invest in: common and preferred
tained around today's marks for some time,
Regardless of changes stocks, make loans on notes, de¬
in Administration.
As for competition in the money markets bentures or bonds, and guarantee
and
after the war is over, that is when the
industrial
obliga¬
ability of the Federal Reserve business
tions.
and Treasury to maintain the market
'!>..
through official manipulation
of the Reserve's portfolio and excess reserves will be
"Through the medium of such
put to the
supreme test.
And that ability is what you must depend on when a corporation, a substantial vol¬
ume of risk capital could be made
you get into postwar considerations.
...
.
.center
nerve
corporations to participate in
common
stock ownership of the
corporation, For this reason they
suggested, that an offering of de¬
most
out
details
of
the
pate in the corporation.:'
;
pro¬
available
"The stock of the proposed cor¬
^
"Mr. Boettler suggested certain
features of the proposed pool and,
poration would be
to public
open
ard
Motor
minutes
plant could take five
off before lunch and at
subscription under the plan, but the end of the shift to "powder
their -noses"
without
suffering
shipbuilder's
invitation, participation would be limited in
loss
of
pay.
Reporting, this,
both he and Mr. Snyder, drew the all eases to sums which the sub¬
to the various issues and to the Series E, F and G war bonds to
United
Press advices from De¬
outline for the corporation.
; : ' scribers could afford to assume
the limits set by the Treasury order.
Many smaller banks,
troit, appearing in the New York
"In one marked departure from without impairing or endangering
naturally, won't be able to buy more than 25 or 50 bonds under
"Herald Tribune," added;
:
;
the restrictions, for they haven't sufficient time deposits to i Mr. Kaiser's plan, the two bank¬ their own solvency.
"The company had sought to
ers
"The
life
proposed organization of the
permit larger orders. V.
Others, which have major time
pf the corporation
deposits, will be held down by the $200,000 over-all maximum * pool by industry, banks, insurance would be limited to 15 years, with discontinue the practice on the
t
set.
Which means that commercial banks will be out of
companies, labor and the. public, 10 additional years for orderly grounds that the women were
without Government financial as¬ liquidation. ..Y Y
this drive to all intents and purposes.
.
And that, as has been ;
paid for 55 minutes of work each
sistance.
"; mentioned frequently in the past, wa$ the objective in the first
YY; Y
"Several bankers in discussing
week they did not do.
The men,
place.;
"If private initiative and Amer¬ the proposal declared that special
,,vY: Y'vYyY Y
■•'Y
■ ''-"S;;YY' yy" - YyY Y r
the
company
said,
were
not
and
Federal
The commercial bank totals won't be included in the: quotas, ican business are to survive," they State
legislation
but the $17,000,000,000 to $18,000,000,000 forecast is terrific on its said at the outset of their draft, would be required to permit banks granted the privilege,"
own.
The various War Finance Heads here in Washington and
itself—the 214s and 214s mostly, of course. ,
And around
$500,000,000 will be obtained from commercial banks; subscribing
.
.
;
at
the
.
.
„
♦
.
.
.
.
.
.
.
■
.
.
.
,
elsewhere around the country are, reporting perfect! teamwork plans
and predicting that house-to-house canvassing this time will cover
anywhere from 80 to 90% of the potential buying public.: , . A-drive
assures success.
And. also indicates that when this
of that kind
.
.
AU of these shares having been sold this advertisement appears as a matter of record only '2nd, is not, and is under,
circumstances ta be construed as, an offer to sell, or a solicitation of an offer to buy, any of these shares.
no
.
drive is over, we'll have 55,000,000 to 58,000,000 holders of war bonds
and $30,000,000,-plus of Series E, F and G bonds outstanding. ; . »
NEW
Again, applying this to you and to the market, the lesson is
clear.
i
The price level will be aided by open I market buying
of outstanding 2% issues by commercial banks, barred from the
campaign and from the chance of picking up securities at par.
v..
ISSUE
101,389 Shares
,
.
.
The Standard Oil
new issues will be aided by an enthusiastic subscription
atmosphere and official support. . , »
There's some feeling around that the shorter-term 2s, < the issues
due in 1951 and within the 1949-51 maturity range, will be more
popular over the coming weeks than the newer 2s of 1953/51. Yy
That may be the case, if the buyer confines his purchases to strictly
money market "curve" theories.
But the 2s of 1953/51, with their
price low to par and with their relationship way out of line to«the
market, seem to this observer the more attractive obligation.,
And whatever the particular issue chosen, it does seem obvious
that the new 2s at last are coming into their own.
/
And, the
.
:
(Incorporated in Ohio)
Company
4%% Cumulative Convertible Preferred Stock
Par
Value
$100
..
.
.
,
.
-
,
Subscription Warrants for these shares were issued to the holders of the Common
Stock
of
theCompany and upon the exercise of such Subscription
Warrants
96,030' shares were sold; The remaining shares have been sold by the Underwriters.
.
,
PATTERN OF FINANCING?
This
will
be
war
the
loan, beginning the 18th and ending in mid-February,
first
step in the new pattern pf war financing.
According to opinion in Washington, there will be another, fifth,
loan
war
before
end
the
of
the
fiscal
for April or May, so that it follows the
under the deadline of the summer lull.
.
v
That
same
fifth
amourt
this fourth drive.
,
.
•
.
terms upon which it was
Copies of the Prospectus describing this stock and the
offered-may
Y
legally
■
be
furnish
obtained
the
in each State
Prospectus
in
from
such of
compliance
with
undersigned
the
the
laws
of
such
as
may
State.
year.
Tentatively set
tax payment date and gets
.
.
.
,,
.
F. S.
loan probably would
war
as
1
,.
be for approximately the
But, chances are the campaign
will
be divided, so that individual subscriptions are counted in
batch and insurance company and corporation subscriptions are
counted in another batch..,
Again, commercial banks probably will
&
The First Boston Corporation
Moseley & Co.
Co., Inc.
one
Y
'
Harriman Ripley & Co.
Lee Higginson Corporation
Incorporated
,
not be
permitted to enter the public war loan drive:
But in mid-summer, when the lull
is
on
and
,
a
;
.
Mellon Securities Corporation
public drive
that commercial banks will be
a note, to place the note
position and satisfy bank demand for some
Hayden,'Miller and Company
is out <»f the question, it is likely
offered
some
securities.
market in its proper
..
five-ye** stuff.
,
.
.
...
Probably
This loan would raise
a
few billions, would
January 10, 1944.
Y
-
/
.
Smith, Barney ■& Co.
COMMERCIAL & FINANCIAL
THE
184
Thursday, January 13, 1944
CHRONICLE
science, which has been vir¬
tually abandoned since our; en¬
trance into the war because the
pure
Have Told 'Em
My "Old Man" Would
Motivating
Foroe Of Progress
The
Salesman's Corner
The Securities
Where To Go!
majority of scientists are engaged
this country when he was nineteen and
back in the eighties with three posses¬ First National Bank of Boston Warns Paternalism Is Not
sions; a ticket to Nashville, Tenn., a-cheese sandwich, and a g£eat
In Keeping With Tradition And Is Threat To Freedom
craving for that freedom to live his own life, whicn he hoped to iincl
"As we pause at the threshold of the New York and lift our sights
in America.
*/■'■' T .
above the smoke of battle to visualize a better toworrow, it is well
He never, during all the thirty odd years when I knew him,
to give serious thought to the motivating force of progress and the
made one single statement of regret for having come to this land.
His love of America and its, institutions was something so deep and conditions under which it thrives," says The First "National Bank of
Boston in its current "New England Letter."
.
basic within his nature that you didn't have to hear him express him¬
Continuing the bank says, "The source of progress is the1 spirit
self to know how he felt about it. The fifty-rune years of his hfe
which he spent in this country were a living expression of his of inquiry, which is generally pre-<&My "old man" came to
in Castle Garden
provides the basis for many of
the far-reaching technical devel¬
opments,
"The problem of retrenchment
and adjustment after the war is
over will be one
of the greatest
:
•
.
:
_
,
.
the little town where I was raised,
how one
by his side and I can still feel the
tightening of his hand around mine as the flag went by. •- After we
had marched to the cemetery he took me aside and he told me the
story of Lincoln, and the Civil War. How he spoke with pride of
Dewey and Manila Bay.
He had adopted this land and he wanted his
children to appreciate its traditions and to know its history.
,
The reason I am going all around the bush in order to bring out
the fundamental fallacy of this latest dictum of the Board of
Governors of the NASD is THAT I CAN JUST IMAGINE WHAT
MY FATHER WOULD HAVE TOLD ANY NASDER OR ANY ONE
ELSE, BACK IN THOSE DAYS WHEN HE WAS RUNNING HIS
LITTLE RETAIL STORE OUT IN OHIO, IF SOME BUREAUCRAT
WOULD HAVE HAD THE GALL TO COME INTO HIS PLACE OF
BUSINESS AND TRY TO MAKE HIM LIMIT HIS SELLING PRICE,
OR DISCLOSE HIS WHOLESALE;COSTS TO HIS CUSTOMERS.
They were a different breed in those.days than we seem to be
today. They had a different form of government then too. THEY
back in Ohio in
Decoration Day I stood
,
UP NEW ? RULES AND REGULATIONS
IN THE WEEK TO BEDEVIL AND HARASS
BUSINESS MEN OF THIS COUNTRY, BOTH LARGE AND
-My father never
,
the chief source of
representative in the State legislaure and one more flunky would
a good lesson in manners and the respect that government
officials In this country were required in those days to show to law
have had
\
abiding, decent citizens.
around today
in the securities business, it wouldn't be twenty-four hours after the
next meeting of the Board of Governors of the NASD on the 17th and
18th of January, that if news didn't come forth that the 5% rule was
rescinded, THERE WOULD BE A NEW ASSOCIATION OF SECURI¬
In fact if there were a few more like my old man
TIES DEALERS IN THE PROCESS OF FORMATION UNDER THE
MALONEY ACT, IN THIS GRAND OLD LAND OF OURS
:
;
SIGNED
v
The fellow who writes this column.
NY Chamber
fluence
Urges End
on
in; the
the
prices to the
Of Food Subsidies
would
tion of the national economy, ex¬
of
tension
over
private
follow
food
on
industry
of
mentation
control
bureaucratic
the
extension
subsidies,
a
and
farmers
of
regi¬
would
consumer
report approved
of Com¬
Jan. 6 by the Chamber
merce
of the State of New York,
urged
the
action
of
the
tion
follow the
the House in adopting
Senate
Commodity
bill
to
Credit
which would
Corpora¬
end most
food subsidies.
"Subsidies,
fail
mands
Warning that further socializa¬
from
rationing,
consumer
check
to
labor
and hence
further
for
or
lower
wage
de¬
in¬
is Chairman said.
At
its
Chamber
to
Wagner-Murray-Dingall
enlarging the scope of the
bill
Social
the
Jan, 6, the
its opposition
on
recorded
Security
Kilgore
Act
bill
to
and
scored
establish
an
Office of Scientific and Technical
Mobilization.
measures
issue,
Reports
on
these
by Chamber Committees
referred
pages
93
to
in
and
our
Jan.
individual free¬
formal expres¬
the Magna Carta, which
in
wrung
6
respec-
This
substantial
part of it, for manifestly war pro¬
duction in
the aggregate must
to
continue
resources
restrict
call
on
the country's
which wilt
to an extent
production dras¬
civilian
tically until the end of the war.
We must
also realize that the
from
King
John in
nearly
six
centuries
,
principles were In¬
our
growth of American industries
large measure to
American
inventive genius and
the
willingness
Prior to the war
with about 7 % of the
ulation,
much
is to
to
take risks.
the United States,
world's pop¬
effect
of
cutting back war
in some directions
permit a greater concentra¬
tion of effort in
others.
Defeating Germany
is
still
an.
and Japan
of great
undertaking
accounted for nearly as magnitude.
Though the "blue¬
and wealth as all print of Victory" is drawn we can¬
income
combined. not afford to ease up, sit back and
it possible for relax in the confident assumption
the average worker, with the aid that the time for extraordinary
of machines, to produce ten times effort has passed.
was
Victory, moreover, will bring
protection
of
individual as much as was produced by a
rights against the tyranny of gov¬ worker during the early days of Its own stupendous problems. So
ernment. The great advance and dhe Republic. About 100 years ago far as we can see the Allied con¬
vitality of the Anglo-Saxon civili¬ the average person had approxi¬ ferences have not yet outlined
zation is attributed largely to the mately 52 wants, of which 16 were positive guarantees against future
fact that the people have exer¬ regarded as necessities. Prior to wars. Slashing way Japan's warcised their privileges as free men the war the wants numbered 484 won empire is not going to end
and have been distrustful of the on the average, of which 94 were the menace of Japan's industrial
extension of the protective spirit considered necessities. When the war machine. Battering Germany
of government.
Our forefathers, war came, American business was into surrender will not, of itself,
who came here to escape the regi¬
able in a comparatively short pe¬ eliminate the German craving to
mentation
of.
the
old
world, riod of time to surpass the com-* rule the world.
sensed instinctively that to lean bined war
America
and her Allies still
output of the Axis
on
the government for aid or powers, which had ,a running start have a tremendous job to do to
In the face win the war and establish a dur¬
special favors would eventually of several years*
mean the loss of freedom.
So they against time, American ingenuity able peace.y It's a job that de¬
established safeguards. When pa¬ met the test.
The unprecedented mands now "and will continue to
ternalism holds sway, the national achievement was made possible demand
all the faith, courage,
will, which is based upon public largely by the research facilities alertness and plain hard work we
opinion,
is weakened and the that have been built up over the can put into it. ;
spirit of resistance becomes en¬ years. In the course of a little
feebled.
Time and again man¬ more than two decades the num¬
kind's progress has been retarded, ber of American research labora¬
by
restrictive laws, oppressive tories has increased nearly 12regulations, or by a system of fold, while annual expenditures
coddling the people, with the lure for research in industrial labora¬
Total assets of Wilshire Federal
of security placed above risk-tak¬ tories in this country are placed
ing ventures.
It has been well at $300,000,000, or as much as was Savings and Loan Associationsaid that 'when people no longer spent for this purpose by the rest were $1,831,564 as of Dec. 31, 1943,
which represents an increase of
are
willing to take chances un¬ of the world before the war.
der the government of law, they
"The irresistible forces set in 64% in the year of 1943, according
must take their chances under a motion
to
an
announcement made by
by modern developments,
government of men/.
y t.v-'n
and accelerated by the war, make Walter D. Smyth, Executive Viceof
the
organization.
"When a government succeeds continued research mandatory. In President
in using its authority to stifle in¬ its broadest sense, research rep¬ Dividends totaling $21,166.59 were
the
countries
other
This system made
.
.
Wilshire Savs. Loan
Increases Assets
quiry, or'when it loses confidence
in the capacity of the people, to
proceeds to pamper them
shield
them
against the
of life, the wealth-creat¬
rule and
and
meeting
the
;would have only a temporary in¬ tively.
of
creases," the report which was
drawn by the Executive
Com¬
mittee, of which Robert F. Loree
were
under
inflation trend
establishing
security,
exemplified by. the record
country. The unprecedent¬
suggest
traversed
to
have
procurement
then
corporated in our own Constitu¬
Rights. It is sig¬
nificant that the chief provision
in these charters of human liberty
his
of the history of man¬
that innovation is
reveals
is best
tion and Bill of
My father knew his rights. He knew his figures were correct.
He knew too that all he had to do was to report that smart aleck to
with
/
circle or any
the full
first
1215,; and
.
.
misleading
conditions
has been due in
later the same
prerogative of going through his shelves
and his merchandise without asking his permission. And HE TOLD
HIM TO TAKE HIS BRIEFCASE AND HIS PAPERS AND GET
OUT OF HIS STORE BEFORE HE THREW HIM OUT—AND THE
WAY THAT BUREAUCRAT WENT HE KNEW THE
OLD MAN
WOULD HAVE DONE IT—BUT GOOD!
'
;
"A study
kind
that
ed
was
of business and, taking the
leaning on
crutches.:,'•
be
would
of
sion
walking into his place
He told him he had a hell of a nerve
ing things; and not by
"The battle for
knew that in the month
stock was at its lowest
point between seasons and reminded him that it was then June, the
height of the season. He told him he had taken an honest inventory
according to law and THAT THIS WAS ALL THAT WAS NECES¬
SARY.
searching for better ways of do¬
dom found its first
get himself organized. He asked-him if he
oL January, when he assessed himself, his
by
constantly
by
and
stagnation
■" yd; V"';-:''
government,
has followed.: V"
.you've under-assessed yourself." .
;•••• \ /v-/
\'v;;
With that my father got up from his chair, he walked over to
Mr. Tax-Collector, and if I ever saw a real American citizen WHO
KNEW HIS RIGHTS, AS WELL AS HIS DUTIES, GO INTO ACTION,
IT WAS MY OLD MAN. He asked this bureaucrat if he had ever
■been in the retail clothing business. He asked him if so, where and
when.
The questions were popping so fast Mr. Tax-man couldn't
earlier estimates.
pampering of the people
sidious
by
tionary pressures compared
,
of nature
forces
spirit has been suppressed by au¬
thorities or enervated by the in¬
must have known
moved, nor did he speak,;He
but he never let on. Finally,
liberal education,
coming the
hard
work
he said, "If you'll
tell me what you are looking for I'll be glad to show it to you." The
important looking visitor turned around and said, "I am from the
state tax department. You turned in an assessment for $20,000 and
I understand you have an inventory of about $30,000. Jt looks like
who the fellow was
(Continued from first page)
the rate of increase in infla¬
in
V' ■;'; ing with our tradition and is a
All this is in contrast to the
threat to freedom.
situation a year ago when every
"In plotting our course for the
day brought its quota of expand¬
future we should be mindful that
ing appropriation for war and its
the advance of civilization is the new orders limiting the, use of
record of man's struggle in over¬ materials
for civilian goods.
It
government, creative
literature, religious tolerance, as
well as freedom in other fields.
Whenever
the
atmosphere
has
bedn favorable for the spirit of
inquiry, civilization has advanced.
On the
other hand, when this
.
.
imagination,
energy,
democratic
gentleman carrying a
days there was a
law in Ohio that compelled every citizen to assess his own personal
property for state taxes. This my father had done in the month of
January according to the law. It was now June/ The important look¬
ing gent never said a word—he just went over to the shelves and
started pulling out the shoe boxes. He opened a few boxes then put
them back. Next he went overdo the clothing department and started
,
cannot survive."
it
power
minds of men.?
the
there developed
'.V:'
l///S.r;;' . ■
old I was sitting in the back
of my father's store and an important looking
brief case came through the front door. In those
i
or
and cease¬
challenged' crusty
tradition
and
superstition
and
opened up new vistas. As an out¬
growth of these
contributions,
TO THINK
suits,
cratic
'
EVERY OTHER DAY
to look at some
private enterprise and
preservation of our demo¬
form of government will
the
and rule ilization in keeping with their re¬
Knowl¬ sources, capacity, and tradition.
Lavish handouts oh our part to
edge' was decreed final and it was
other countries would not only
heresy to question or to challenge
disrupt their economies, but would
prevailing beliefs.
.
"This spell of ignorance was engender their contempt and illwill. Paternalism at home, or its
broken .by a Handful of brilliant
extension abroad, is not in keep¬
men who, with dauntless courage,
over
retain
to
order
less
THE
discontent
by
intense
.SMALL.- V:;:V..v
Once when I was about ten years
The fate of
.
SWARMS OF BUREAUCRATIC YOUNG LAWYERS
THE PUBLIC - PAYROLL WASTING MIL¬
OF DOLLARS OF THE TAXPAYER'S MONEY EVERY
JUST
busi¬
Every step in the
cism.
SITTING AROUND ON
YEAR
American
has ever been forced to face,
ness
skepti¬ feet, furnish them with food and
upward clothing, and arrange for them to depend upon how 'effectively this
It is highly es¬
receive tools so that they can, go situation is met.
climb of civilization has been the
to
work.; In
other words, we sential, therefore, that we keep
result of experiment, of trial and
within
the
framework of our
error by investigation.
For thou¬ should, proyide the means of selfeconomy the spirit of Initiative
sands of years, the world was in help and encourage them to work
out their own salvation. . Democ¬ and ingenuity, as well as provide
darkness and ignorance as man¬
cannot be imposed from the incentives for the assumption
kind was dominated by supersti¬ racy
without, but must spring from of risks, for these are the pillars
tion, dogma, and tradition. ; The
within the people themselves, and upon which the American system
quest for truth was ruthlessly
has been built and without which
crushed
by despotic groups in they must develop their own civ¬
ceded
DIDN'T HAVE
LIONS
that
challenges
..
I remember
there
science
he landed
Americanism.
projects. Without pure
would not .be laid
which
in military
the fundamental knowledge
storms
ing qualities of the .people are un¬
dermined, the nation is impov¬
erished, and
appears.
self-government dis¬
This is the verdict of
history.
*'
"This same
principle applies to
international affairs. In the
reha¬
after the war the
United States will be called upon
bilitation task
to
play
a
We should
nations to their
leading role.
help the stricken
perpetual* search for paid to holders of savings and in¬
vestment accounts at the associa¬
of doing things based
tion on January 1, it was further
upon
investigation and experi¬
announced by Mr. Smyth. Each
mentation. Regular research work
account up to
should be given the green light person's savings
$5,000 is insured by an instrumen¬
as soon as military conditions per¬
tality of the United States Gov¬
mit, for research can be used as
ernment.
In line with the subthe most effective bridge to span
resents
the
better ways
j
stantial'increase in assets during:
wartime and
peacetime operations.
The first 1943, loans at the end of the past
step in this' direction should be year totaled $1,663,291, an increase
of 63%' during 1943.
The semi¬
to
release
the relatively small
annual dividend was at the rate
amount of materials necessary for
of 3% per year, the current rate
experimental
work.
Provisions
the
gap
Should
between
also
be
made
as
possible for resuming the
soon
as
study of
savings
accounts
are
ing at this association..
now
earn¬
Volume
Number
159
DIVIDEND
THE COMMERCIAL
4246
NOTICES
&
CORPORATION
6% Preferred Stoek, Series A
No. 69, quarterly,
A
SuppEf Contracts Adopted
tion
Director, who ordered all war procurement agencies of the Gov¬
immediately in all new supply contracts.
Mr. Byrnes also forwarded to the agencies a statement of
principles
ernment to make it effective
to be followed in
SI.50 per share
determining costs at the time of termination.
termination
The
5% Series
article
drafted
5% Cumulative
head of the OWM War and Post-
,V No. 48,
payable
Preference Stock
quarterly, $1.25
War
share
per
February 15,1944, to holders of
close of business January 20,1944,
on
record at
Dale Parker
January 6, 1944;
•:
•
NO.
dividend
share
Joint
The
'
Contract
<
article
termination
pro¬
the
contractor
must
do
per
the
capital
Morrell
&
Co., will he paid
January 31, 1944, to stockholders cf
record January 17, 1944, as shown on
the books of the Company.
Ottumwa, Iowa. Geo. A. Morrell, Treas.
receiving
notice
termination
his
from the Government is set forth
and
provision
full
also
is
for
made
prices
With
respect to the margin of profit
allowed on work begun but not
completed, the uniform termina¬
payment at contract
completed articles.
for
all
limiting
all
First
The
in
All
National
State of
the
creditors
of
affairs.
are
therefore
for
present claims
to
Butte
at
closing its
is
association
the
notified
hereby
located
Bank
Nebraska
payment,
iXn ■'> A.y J ;f:;V ED. s. DONAHUE, President,
Dated
*
December 2, iMSk-A
Or\ Afg l/-'\V' %
the
maximum
of
maximum of 2%
a
on
processed inventory,
v
The text of the uniform termi¬
fixed-price sup¬
ply contracts follows:-
Ruml
The
Again Chairman
the
The
Federal
Reserve
nounced
System-
an¬
Jan. 2 that it had
on
designated
Beardsley
Ruml
re¬
as
-
Chairman of the Board and Fed¬
eral Reserve
Reserve
Agent of the Federal
Bank
of
York
New
the year 1944. Mr. Ruml
for
has been
director of the Federal Reserve
a
Bank of New York since Jan.
1937, and served
as
16,
Deputy Chair¬
of the Board
man
Jan.
from
19,
1938, to Dec. 31, 1940. He has been
Chairman of the Board and Fed¬
Reserve
eral
1941.
Mr.
Agent since Jan.; 1,
Ruml
is
Treasurer
performance
contract
of
(A)^
under
work
may
with this article in
Board of Governors of the
of
time
the
to
time
in
contracting
termine
whole, or from
part, whenever
officer shall de¬
such
any
termination
is
for the best interests of the Gov¬
ernment.
Termination
hereunder
delivery
shall
be
of
work
effected
•
by
the" contractor of a
specfiying
the extent to which performance
notice
to
of
termination
of
work
be
terminated, and the date
which
under the contract shall
upon
such termination shall
effective.
come
work
this
under
be¬
If termination of
contract
is
si¬
multaneous with, a part of, or in
connection with, a general termi¬
H. H. Macy & Co., Inc., New York/ nation (1) of all or substantially
half of a group or class of con¬
The Board of Governors also
announced
pointment
on
Jan.
2
William
of
tracts
the
I.
reap¬
Myers,
Dean of the New York State Col¬
lege of Agriculture, Cornell Uni¬
versity, Ithaca,- N. Y., as Deputy
Chairman of the New York bank.
He
has
bank
been
since
a
of
director
the
Jan.
1, 1943, and its
Deputy Chairman since Sept. 11,
1943,
Robert D.
Calkins, Dean of the
School of Business, Columbia Uni¬
versity, New York, was re-elected
>
Class
a
C
director
for
a
three-
[year term.
York, the Board of Governors'an¬
nounced
the
appointment
of
Thomas
made
the v~— depart¬
same product or for
by
ment for the
closely
of
related
time
products,
contracts
war
of,
or
termination
shall
only
in accordance with the
be
made
this
article, unless the
tracting officer finds that the
tractor is then in
gross or
con¬
con¬
willful
default under, this contract.
(b) Aiter receipt of a notice of
termination and except as other¬
directed
officer,
terminate
tract
by the contracting
contractor shall (1)
the
work
under
the
con¬
the date and to the extent
on
specified in the notice of termina¬
no
Marion B.
Folsom, Treasurer of be necessary for completion of
has been such portions of the work under
appointed Chairman of the Board the contract as may not be termi¬
of the Buffalo branch, succeeding nated;
(3) terminate all orders
Howard Kellogg, and Elmer B. and subcontracts
to
the
extent
Milliman, President of the Cen¬ that they relate to the perform¬
Trust
Co., Rochester, N. Y.,
Raymond N. Ball, Pres¬
succeeds
ident
Bank
.
of
&
the
Trust
Lincoln-Alliance
Co.,
as
of the Buffalo branch.
director
a
■
Real Estate Opportunity
Arthur
Weisenberger & Co., 61
Broadway, New York City, mem¬
of
ance
the
work
any
notice
terminated by
termination; (4)
assign to the Government, in the
manner
and; to the extent directed
by the contracting; officer, all of
the right; title! and 'interest of the
contractoru tinderri the
subcontracts
settle
such
all
so
orders
of
Terminated; (5)
arising out of
claims
termination
of
orders
and
subcontracts with the approval
change, have issued an interest¬
ing analysis of City Investing Co.,
a company whose shares are listed
ratification of the contracting of¬
ficer to the extent that he. may
the New York Stock
Exchange
and
whose business, since
1904,
has consisted of buying, managing
and selling New York City
reali
estate. ' Copies
of this analysis,"
discussing the. favorable aspects ]
and outlook of this
or
require, which approval
fication
shall
of
purposes
transfer
title
be
this
and
Government in the
manner
times
at
the
all
article;
deliver
extent
and
rati¬
or
final for
or
to
the
action
as
may be
the ^contracting
direct for protection
as
the
of the property,
possession of the
has
ernment
or
acquire
may
interest.
:
-•
-
-
(c) The contractor and the
tracting
the
officer
whole
may
or
an
agree
con¬
upon
of the
amount or amounts to be paid to
the contractor by reason of the
total
or
partial termination of
work
pursuant
to
this
article,
part
any
.
which
amount
include
for
amounts
or
reasonable
a
may
allowance
profit,
and the Government
shall pay the agreed amount or
amounts.
Nothing in paragraph
(d) of this article prescribing the
amount
be
to
tractor
in
paid
the contractor and the
officer
to
amount;
agree
be
to
tractor
by
of
article
shall
the whole
the
to
of
con¬
the
termi¬
to this
be
deemed
to
limt.
otherwise determine
the
of
pursuant
work
or
affect
con-,
contracting
upon
paid
reason
nation
restrict
the
to
the event of failure
amount
or
amounts
or
which may be agreed upon to be
paid
the
to
to this
contractor
pursuant
paragraph (c).
(d) In the event of the failure
of the contractor
and
officer
as
to
agree
(c)
paragraph
contracting
provided in
whole
amount to
be paid to the con¬
tractor by reason of the termina¬
tion of work pursuant to this ar¬
upon
the
obta^d
upon
situation,
reouest
principles for determination
terials not processed by the con¬
cost upon termination
tractor, plus
ment fixed price
cent
per
such
a sum equal to
.
.
.
(**) of the remainder of
amount, but the aggregate of
such
shall not exceed 6%
sums
whole
mined
of
the
under
amount
of
deter¬
subdivision
(i),
which for the purpose of this sub¬
other
any
dental
reasonable
cost
termination
to
of
years
under
the
the
of
the
termination
of. work
this contract.
The total
:
to be
sum
to
paid to the
contractor under subdivisions
the
contractor
records,
all
and
(d)
of
this
paragraph
shall not exceed the total contract
price reduced by the
of
amount
tne Government shall have other¬
wise
expressly assumed the risk
of loss, there shall be excluded
from the amounts payable to the
contractor as provided in para¬
graph (d) (1) and paragraph (d)
(2) (i), all amounts allocable to
or payable in respect of property,
which is destroyed, lost, stolen or
damaged so as to become undeliverable prior to the transfer
of title
to the Government or to
a
buyer pursuant to paragraph (b)
(7) or prior to the 60th day after
delivery to the Government of
evidence
bearing
on
termination
an
(e) The obligation of the Gov¬
ernment to make any payments
under this article:
(1) snail be
of
deductions
in
respect
all unliquidated partial
(i)
payments,
progress
theretofore
account
contractor
and
payments
made
to
unliquidated
or
on
the
ad¬
(ii) any claim
which the Government may have
payments,
vance
against the contractor in connec¬
tion with this contract; and (iii)
the
price agreed upon or the pro¬
of sale of any materials,
ceeds
supplies or other things retained
by the contractor or sold, and not
otherwise recovered by or cred¬
ited to the Government, and (2)
of the
in the discretion
officer
ing
deduction
contract¬
shall be subject to
in
respect
of
the
amount of any
claim of any sub¬
supplier whose sub¬
contractor or
contract
or
books,
other
the costs and
of
work
thereunder.
*Not to exceed 2%.
**To be established at
a
figure
which is fair and reasonable
un¬
der the circumstances.
Rochester
Telephone
Com. Stock larketed
A
public
offering
order shall have been
made
was
Jan. 4 of
380,000 shares of common
of the Rochester Telephone
stock
Corp., one of the country's lead¬
ing independent telephone con¬
at
cerns,
$15,375
share
a
by
an
underwriting syndicate headed by
The First Boston Corp.
No new
financing is involved, the stock
having been bought from a group
of
Rochester
acquired
business
it
in
who
for
men,
exchange
Rochester Telephone second
pre¬
ferred stock purchased by them
from the
New* York
Telephone
Co.
The
financial set-up of the
Rochester Telephone Corp. con¬
sists of 500,000 shares of common
new
stock
826
($10 par), preceded by 22,-
shares
of
Axk%
stock
cumulative
($100
.
to
its
and
expenses of the contractor under
the contract and in respect of the
inventory covering such property,
preferred
whichever shall first occur.
'
/
subject
of
documents
(1)
(2)
make
under
A/bv.;:\y.
~
1
shall
inci¬
due
amount
after final settlement
contract
available to the government at alt
reasonable times at the office of
work
contract, including ex¬
incidental to the deter¬
mination
supply contracts
•
three
under this
pense
of
of govern¬
approved by the Joint Contract
Termination Board, Dec. 31, 1943.
The
contractor for
a
period of
par)
and
funded and other debt of
$9,276,344.
Plant and equipment of the
company was carried
its books
on
July 31 last at $24,922,417. The
remaining 120,000 shares of com¬
on
stock
mon
owned
will
by
continue
Rochester
most of whom
to
be
residents
officers and di¬
are
rectors of the company.
Rochester
Telephone
Corp.
2,300 square miles with a
population of 530,400, including
all
of
Monroe
and
Livingston
serves
Counties
and
Ontario,
of
Genesee,
in
and Wyoming
New York. ' About
the
revenues
Counties
70%
parts
Steuben
of
company's
originate in Rochester.
Associated with The First Bos¬
ton
Corp. in the underwriting
are
the Union Securities Corp., Smith.
Barney-& Co., White Weld & Co.,
George D. B, Bonbright & Co.,
Goldman, Sachs & Co., Kidder,
Pqa^y ,
.Co., Merrill Lynch,
'^ierrpl(sEpnner & Beane; Stone
,
terminated
duplication of any amounts
agreed upon in accordance with
graph (b) (3) except to the extent &' Webster
paragraph
erty
contractor
(1)
completed articles de¬
For
livered
(c), shall pay to the
the following amounts:
and
to
accepted
the
by
Government
as
(or sold or retained
provided by paragraph (b) (7)
above, sand
for,
to
not
forthwith
aggregate
ticles
theretofore
a
equivalent
for such ar¬
sum
price
in
accordance
prices specified
computed
with the price or
in the contract;
(2)
In
respect
work terminated
b,.;/My-;
of the
as
contract
permitted by
this
article, the total (without
duplication of any items) of (i)
the
cost
of
such
work
exclusive
of any
cost attributable to articles
paid onto be paid for under para¬
graph (d) (1) hereof; (ii) the cost
of settling and paying claims aris¬
ing out of the termination of work
under
subcontracts
or
in paragraph
above,, exclusive of the
provided
orders
as
(b)
(5)
amounts
(6)
services
paid
or
furnished
contractor
prior to
by
the
the
sub¬
effective
j date of the notice of termination
by the contracting officer (i) the, of
work
under
this
contract,
such
that
as
in
provided
claim
(i)
covers
para¬
prop¬
materials delivered to the
contractor
or
(ii) services fur¬
or
nished
the
to
nection
contractor
in
con¬
the' production
with
and
Blodget.
Inc.;
Moseley & Co"., Tucker,
Anthony & Co., Sage, Rutty &
Co., Inc.; Lee Higginson Corp. and
Little & Hopkins, Inc.
^
of
.
completed articles under this con¬
tract.
the
Sabotaging Sugar Industry
,,y
In the event that, prior to
(f)
paid
may | fabricated or unfabrieated parts/ which amounts shall be included
from, work in process, completed work, in the cost on account of which
Arthur Wiesenberger & Co.
supplies and otner material pro-' payment is made under subdivi¬
be
of
out
the
to the
the contractor shall be determined
in accordance with the statement
ma¬
or
ticle, the Government, but with¬
payable on account of
supplies or materials delivered or
directed
of, the amounts of the payments
to be made by the government tfA
rep¬
which
complete;
contractor and in which the Gov¬
of
bers of the New York Stock Ex¬
on
such
take
which is in
further orders
sub-contracts for materials, ser¬
vices or facilities, except as may
or
the Eastman Kodak Co.,
tral
(8)
officer may
and preservation
provisions
of
Robins, Jr.) President of tion; (2) place
Hewitt Rubber Corp., as a direc¬
tor for a three-year term.-:
/
(2)
or
about .the
at,
following, the cessa¬
tion of the present hostilities, or
any
major
part
thereof,
such
wise
; V At the Buffalo branch of the
Federal
Reserve
Bank
of New
officer;
necessary
the
at
be terminated
by the Government in accordance
Of ILL Reserve Bank
.
forts to sell in the
manner,, to the
.
ARTICLE—Termination
(i)
(iii) shall exclude any
terminated in the notice of division
termination, and (ii) the plans, charges for interest on borrow¬
\ y.'V'P'
drawings, information and other ings; V'-:fcv
(3) The reasonable cost of the
property which, if / the contract
of
had been
completed, would be preservation and protection
incurred
pursuant
to
required to be furnished to the property
(b)
(9): hereof; and
Government: (7) use his best ef¬ paragraph
(9)
nation article for
Option of the Government.
under subdivision
pei£. payments otherwise made and by
formance of such part of thewbrk, the; contract price of work not
as shall not have been
Except for normal
terminated', terminated.
by the notice of termination; and spoilage and to the extent that
un¬
a
.
work
ing
6%
to
cases
and to
in
profit
aggregate
part of, or acquired in
respect of the performance of the
a
the contractors
(i) shall not be
required to extend credit to any
purchasers and (ii) may retain
any such property at a price or
prices approved by the contract¬
tion clause has devised a formula
LIQUIDATION NOTICE
>•
duced is
extent, at the time, and at the
price vor prices directed or used
by the contracting officer, any
property of the types referred to
in sub-division (6) of this
para¬
graph, provided, however, that
on
58
John
of
the
of
Unit, and by
M. Hancock,
vides for two types of settlement
—^-negotiation and through appli¬
cation
of
a
specified formula.
Fifty
($0.50)
on
stock
of
John
Barucb,
M.
Termination Board.
What
DIVIDEND
Cents
Readjustment
associate,
Chairman
Secretary
JOHN MORRELL & CO,
A
his
Bernard
by
,
resents the cost of articles
the
was»>-
No. 59, quarterly, $1.25 per share
,
(i) above; and (iii) a sum
equal to
per cent (*) of the
part of the amount determined
,
announced
was
185
sion
termination article for fixed-price war supply con¬
on Jan. 8 by James F. Byrnes, War Mobiliza¬
uniform
tracts
The Board of Directors has
declared this day the following dividends:
Cumulative
Fixed-Price War
:
ELECTRIC
Cumulative Preferred Stock,
CHRONICLE
Uniform Article-For ■ Termination Of Ssvf.
COLUMBIA
GAS
& FINANCIAL
of
determination
to
be
the
final
to
the con*
tractor as in this article provided,
the contractor shall file with the
contracting officer a request in
amount
paid
Lamborn
Street,
&
prepared
Inc.,
99
City,
Wall
sugar
fifty years, have
analysis of the sugar
"Formula for
over
an
situation
Co.,
York
New
brokers for
entitled
Sabotage of the Sugar Industry,"
writing that an equitable adjust¬
ment should be made in the price
expressing the growing alarm felt
by the firm concerning a trend in
prices specified in the contract
the work not terminated by
American life which they believe
is threatening to rob the Amer¬
or
for
the notice of
termination, the ap¬
propriate
fair
and
reasonable
adjustment shall be made in such
price or prices.
(g) The Government shall make
partial payments and payments on
account, from time to time, of the
amounts
shall
be
to
which the
entitled
ican
people of certain freedoms
assumed to be inherent in
American citizenship.
Copies of
long
the
study
Lamborn
quest. : i
.
be obtained from
Co., Inc., upon re¬
may
&
\
contractor
this
under
ar¬
Interstate Looks Good
Interstate Aircraft & Engineer¬
ticle,
whether
determined
by
agreement or otherwise, whenever
in the opinion of the contracting
ing
officer the
brochure issued by Fred W. Fair-
aggregate of such pay¬
ments shall be within the amount
to
which
the
contractor
will
be
entitled hermmder.
(h)
For
graphs (d)
the
purpose
(2) and (d)
Corp. offers
ation,
man
an
according
&
Co.,
208
attractive situ¬
a desnrintive
to
South
La
cago
Stock
Exchange.
Conies
para¬
this
interesting brochure
(3) here¬
had
from the
of
Srile
Street. Chicago, members of Chi¬
may
of
be
firm upon request.
186
A
Rescind Illegal 5%
NASD Governors Urged To
(Continued from page 163)
Rule At Neil Week's Meeting
(Continued from page
163)
,T;;;
told
'A 7
;-Y^''\'YY::./;-'^
polls were taken just as is the case with
the "Chronicle" condemning the mark-up
asked that we not reveal their identity.
dealers when the
those writing to
rule who
On page
163 we give a resolution passed by the mem¬
Conduct Committee of the NASD in the
Press dispatch from Philadelphia,
.?■ Pa., which further says in part:
The men agreed to .return on
Regarding the recent letters in your paper having to do with the the
"morning of Jan. 10, although
5% limitation rule by the NASD, although I am hot a member, I will
earlier in the meeting they booed
be very glad to contribute $50.00 as a starter toward a fund to be used
when heads of the union
local
in fighting this directive. Apparently if nothing is done about it, it
reported that-national officers of
will affect every small security dealer*.
" )';
Y
the
industrial union of Marine
It appears to me that most of the small dealers are afraid to
and Shipbuilding Workers
Con¬
speak up individually but perhaps by binding together we might be
gress of Industrial Organizations
able to. save our businesses.
Five per cent, is ridiculous and yet I
had ordered the strike terminated
don't believe, there is a small dealer in America who operates on a
■TY; Y■
Albany, N. Y., area which is self-explanatory. Members of
Committees in other areas pre understood to be planning to
follow suit which is in keeping with the avowed intentions
serving in
a
similar capacity to ignore the
that the rule be
*
Springs, W, Va., next Monday and Tuesday (Jan. 17 and 18).
The ^Chronicle" would appreciate receiving copies of such
communications.
This rule should not, must not, and will
not stand.
'
Such additional letters from
v
dealers
on
the 5% profit
spread as could be accommodated in today's paper are given,
starting on page 163. As in the past, no letter favorable to
the 5%' decree has been omitted. And please remember that
in informing the "Chronicle" of your views on the subject
you are helping the cause in a substantial
names of those submitting comments will be
The
manner.
omitted where
requested. Communications should be addressed to Editor,
"Commercial & Financial Chronicle," 25 Spruce Street,
New York 8,
,"/ 'T:A//
N. Y.
Willkie Galls For Individual
Responsibility
,/;TT V
(Continued from page 163)'
to all of us.
They are not
the sole and exclusive
the so-called
property of
They are
of the people.
The basic tenet of
democracy, which we in America
so
deeply believe, is that if the
people are given full responsibility
for their personal lives, and for
the government of their public af¬
fairs, these standards—moral as
great men.
the weight of
American public opinion and the
power of our official representa¬
tives will be greatly lessened if
America presents to the world the
spectacle of a democratic nation
"Unfortunately,
discordant
within
and
unable
to
solve its domestic problems.
The
world is not apt to be guided by
our principles in the
solution of
its problems when those principles
well as artistic—will prevail,"; ■ 1
"Just a little over a year ago I seem so inadequate as a solution
had the privilege of speaking on for our'own.' :vT'.T; ;--"T•; TY"Other nations will not under¬
these Opera Victory Rallies. ; At
that time the United Nations Were stand that the very reason we
a cohesive body of seem so inept at times is not be¬
fighting
together;' 7 no cause democracy is inherently in¬
American of Cabinet rank had effective but because we have not
even visited Russia or China.
'
' as individual citizens assumed our
"It seemed to millions of us that responsibilities; and the full func¬
immediate steps had to be taken tioning of the democratic process
to bring together; the four great
depends upon individual respon¬
Allied powers — Britain, Russia, sibility.
v"
China
and the United
States—
"Only recently it was suggested
that our Government is a doctor
and my time on this hour was
consequently devoted to urging and that we, the people of the
that those great powers should United States, are patients.
Now
this idea—even though facetiously
come together in common council.
At last as we all know, the enor¬ suggested — that the American
mous weight of public opinion has
people are always sick and that
brought about three successive they are not robust individuals
conferences—at Moscow, at Cairo actually is an insidious doctrine-r-
far from
being
peoples
,
■
and
at Teheran.
"These
reason
to
effective
™
conferences,
have
we
believe, have established
military
coordination
and cooperation
of the four great
Allies.
also
to
But
we
have
reason
believe that they have not
produced
economic
and
political
sufficient
moral
yet
and
understand¬
ings.
The force of the peoples'
opinion was responsible for the
very fact that the conference took
place and for such progress as has
been
must
made.thus far.
assert
The people
their
opinion
clearly to bring about those politi¬
cal, economic and moral under¬
now
standings which alone can make
real the
We
great principles for which
fight.
..
again wish to voice
District
was
taken, the 4th
announced
it had
Fank
Knox,
be construed as
consti¬
instructed
been
my
and re-establish the American way
■
is
of doing business,
No doubt you are in touch with many smaller dealers there in
New York who would be glad to head such an association, and I would
T
gladly pay
pro-rata share in getting it functioning as quickly as
my
possible.-
by
'
,
■ y
DEALER
to
not
tuting the taking over of the
Cfamp Shipbuilding Co. by the
Navy,",: the announcement said.
Secretary Knox and the Na¬
tional
War
Labor JBoard
pre¬
.
.
tJ.
.
115
NO.
appealed for termi¬
had
viously
five years in the investment security business of high nation of the strike, Which left
standing, had to let salesmen go. Sold off office furniture, business 17,000 men idle on Jan. 6 after
records in storage. Had to close up business because overhead more the Cramp company discharged 42
who insisted on work¬
than the 5% now allowed. Had very fine clientelle all over the State, painters
than
large industrialists, banks; bankers, investors. Handled small issues ing with brushes rather
After thirty
not
syndicated. Small lucrative business.
-
"
.
responsibility
problems be solved.
"Only by measuring up to the
highest standards of our tradi¬
will
plied to the problems of our home
front we will continue to be rent
with
internal discord, which
our
tions.
economic and social
system
in
complete -confusion
when the fighting is over.
"It will be
"And
a
tough
^
year.
.
doctor, even with the
no
and drugs of an - allall-powerful
Government
palliatives
wise,
can
save
us
from
the
responsi¬
in¬
bility that is rightfully ours as
dividual
and the
railroads
recent
are
seizure
of
disturbingly
present in all our minds.
Those
were the drugs prescribed by the
doctors when the case became too
But the disease remains,
giving
painful.
and it will not be cured by
drugs to the people.
For it is a
doctors, not of the
disease of the
And it will be cured only
attacking
its
fundamental
people.
cause
—
essence
a
alone,
and
that
we
can
win
a
final
victory, and, build
lasting peace." .:
1
maladministration.
of
our
administration
establish
decisions
are
The
present unhealthy
is the failure to
administrative
with power
Face Vital Issues
The second
,
session of the '78th
Congress convened on Jan. 10 fol¬
lowing a three-weeks' Christmas
recess.
Since the President's mes¬
sage on
the "State of The Union"
until Jan.
was" not to be delivered
11, both branches
of Congress onlY
hbld brief formal
meetings and nd
legislative business - was
trans¬
acted, although several measures
were introduced in the House.
! Since there were several impor¬
tant issues in the unfinished legis¬
lative stages
when the first session
adjourned on
of the 78th Congress
these
principle
needed, we have had them
of late in abundance.
The recur¬
rent
seizures
of
factories
and
by
these
real
citizens.
were
the
For there are great moral
principles involved in the strug¬
gle that is going on in the world
today; the principle of honesty,
the
principles of sacrifice, the
principles of devotion, the prin-.
ciples of self-government,' all the
precious principles of human free¬
dom.
It is with these, and these
alone, that we can mobilize the
home front.
It is with these, and
Congress Convenes To
it is believed likely that
will be taken up first ort
Dec. 21,
"If illustrations of this
mines
our purposes can we as
citizens perform fully our obliga¬
peace-time operation we
find
our
tions and
will
inevitably lengthen the fighting.
Unless more imagination and un¬
derstanding are given to the trans¬
ference of our economy from war¬
to
of individual
sense
bright slogans for which we. have
fought.
"Unless clearer thinking is ap¬
ordered by the com¬
YVY Y:Y:YY':;.
spray guns as
*
•
pany.;
may
common
Naval
DEALER NO. 114
•
.
As the vote
'
time
To Solve Present And Post-War Problems
"at once."'
•
v
appreciation of the articles appearing
in the Chronicle in behalf of the small dealer.
'
/
" Secretary of Navy, to give civilian
authorities "any assistance which
I have written letters and enclpsed these reprints to two Repre¬
be
needed": in
assuring
sentatives and one Senator from the Northern Indiana District. Please may
send me fiye additional reprints of the two articles appearing in the "ready and unmolested, access to
the plant" to any workers want¬
Dec. 23rd edition, as I think these are particularly to the point.
'
•
I have read all of the Tetters from dealers-appearing in your ing to return to their jobs.
"In issuing these instruction^,
paper, and am greatly impressed with the idea of forming another
the Secretary stated that this act
association of dealers as a protection against the SEC and the NASD,
illegally
abrogated when the Governors meet at Hot
do,
r
I
adopted 5% mark-up rule. ■
'tT;;
;it is to be hoped that more and more dealers in all parts
of the country will band together and take measures to com-?
pel the Association to rescind this obnoxious rule. Such
groups and dealer associations should write or telegraph to
Ganson Purcell, Chairman of the SEC, and Henry Riter, 3rd;
Chairman of the Board of Governors of the NASD, and insist
:DEALER NO.
smaller margin than I
bers of the Business
of others
Jan. 9 voted to end a strike which
'j V1:;TY\'
:
they could not afford to make their feelings known.
dominant in the minds of these
us
:
Three thousand union employees
of the Cramp Shipbuilding Co. on
*.
«
Y;.;'' DAVID W. BENJAMIN,
- Y, had halted
production of invasion
• •''■ NORMAN W. EISEMAN, ,Y;
ships at the Cramp yards for four
A. JAMES ECKERT, YY.YYY:;
days, according to an Associated
GEORGE R. COOLEY.
/>'•'"'■•C ••
In other words FEAR was
of any statute
v..''•••■;
GEORGE W. WRISTON,
V
';T
in law to that effect.".
been indifferent to
or
-
by any arbitrary percentage figure in the absence
the rule would not
exceed ten.
YvT -V.';*.■.>.7.
So you may ask how come our survey and the polls of
these Associations reflect different results? The whole story
lies in the fact that the polls by the Associations were hot
secret but were conducted by telephone. Firm after firm
would have favored
Cramp Workers End
Shipyard Strike
Step In The Right Direction ;
bodies
and authority whose
just and fair and are
the
Aspects Cf InduslryN Yr Institute Course
The New York
Institute
§
of Fi¬
calendar,: although new
pro¬
posals may be given precedence.
The major subjects to be disposed
of are the new tax bill, the foodsubsidy question, soldier vote
bill
tures
mustering-out pay for serv*:
icemen.
The President's proposal
for a national service law is ex¬
lectures, will be given from 3:30
pected to be the most controvert
sial question when it comes up
for' debate; ■5
,Y;/:; VYYY-'' Y
Y--•'
nance
announces
thoritative
and
a
series
of
instructive
au¬
lec¬
covering developments in
the industrial field, entitled "As¬
pects of Modern Industry." These
to 5:00 p. m. at the Board of
and
Gov¬
Room, New York Stock
Exchange, 11 Wall Street, New
York City; Cost of the series of
NYSE Official
lectures is five dollars.
Decorated In
ernors
The
lows::.
Jan.
tleton,
schedule
of
lectures
vY:T'Y'-;YT
17—"Glass"
Vice
sistant.
.
fol¬
" v';:y
by J. T. Lit¬
President and As¬
Italy,; k
Col. Charles E. Saltzman, whose
decoration
with the Order
of the
Empire for meritorious
action in the Mediterranean was
announced on Jan. 11 from Allied
British
Director,
Reesarch
and
Department, Corn¬
headquarters in Algiers, is a Vice-/T/Vv
—administrative
bodies
under ing Glass Works.
Jan. 24—"Magnesium" by Otis President of the New York Stock
whose rules
each citizen knows
E.
Grant, YMagnesium Division, Exchange on leave of absence. He
his rights and his responsibilities.
is
with
General
Mark
Clark's
Dow Chemical Company.
"For all the confusion in our do¬
a doctrine that would make moral
Italy. In * making this
.Jan. 31—"Aluminum" by Wal¬ staff • in
mestic economy is a perfect illus¬
hypochondriacs of us all, if we
ter, L. Rice, Vice President, Rey¬ known the Exchange stated:
accepted it. It is a doctrine which tration of the fallacy of one-man
"Col. Saltzman was graduated
nolds Metals Company;, President,
at this particular moment we must government in a democracy, no
in 1925 from the United" States
Reynolds Mining Corporation.
matter how brilliant and no mat¬
repudiate
and
repudiate
com¬
Feb. 7—"Synthetic Rubber" by Military Academy, where he re¬
pletely. For the tests that we face ter how well meaning it may be;
John P. Coe, General Manager, ceived a Rhoades Scholarship to
"And now, at the beginning of a
in the coming year will require
Synthetic Rubber Division, United Oxford University. Returning to
not only healthy bodies but vig¬ year that we all know will be
this country he served as a White
States Rubber Company. Y
orous minds and stalwart spirits.
tough, we might as well realize
House aide in 1929 and 1930.
This year will be a tough year,
that no' government—one man or
"In May, 1930, Col. Saltzman
"Unless internal collapse comes otherwise—can solve our prob¬
Interesting Possibilities
became associated with the New
lems for us, either our present
Jacobs Aircraft Engine
soon in Germany our casualty lists
offers
York Telephone Co. which he left
attractive possibilities
according
will
be
long,
heart-breakingly problems or the very difficult
to
a
descriptive circular being five years later to join the staff
long, Unless our leaders exercise problems that will arise with the distributed
by Caswell& Co., 120 of the New York Stock Exchange/
of
our
economy
more
forthright and courageous readjustment
South La Salle Street,
Chicago, He was appointed a Vice-Presi7
from war to
peace-time1 condi¬ 111. Copies if this interesting cir¬
leadership in world affairs than
dent of the Exchange in March;
cular may be had from Caswell
Only by our own initia¬
they have heretofore done we may tions.
1939."
& Co. upon request.
tive, our own energy, and our
see
ourselves
mocked
by the
b
I
not
subject
to
capricious
over¬
ruling that destroys public respect
Development
Lv., ^ \/&& t: O;
WittQAua&snagi
?
Volume 159
Number
THE COMMERCIAL & FINANCIAL CHRONICLE
4246
b„.)
In Retailing
the
to
point..
I
:
starvation
:•'
that1 we can
the impact of this
repeat
grasp
the
world
economy,
on
largely
be¬
in the midst of the greatest
cause
conflagration
in
continue
us
hardly
war
history most
to
of
lead
reasonably
normal-lives.
We have plenty of
food, our homes are comfortable,
we can drive about a
bit, we have
jobs, and business is good.
No
wonder
fail
we
fully that
structure
is
No
forced
that
forces
the
will
the
will
all
history,
of these
war
assure
aration
and
parties
in
say,
come,
national
these
would
August,
of
realignment
Its
many
far
so
re¬
income
by
both
difference of
a
dollars
in
in
any
our
of
one,
.(':t
■:
years.
With the
prep¬
out of the way in
war
to our real test.
we
will be put
It has been esti¬
well
How
forces.
will do
the homefront besides
on
cancel
of
lot
a
point?
Does
How will
at
contracts
have
it
What
that
a
Eather
is
perhaps
unthinkingly, that we shall one
day suddenly return to the good
assume,
old days
that our
of freedom of enterprise,
only problem will be to
provide
full
employment,
and
that
everything will be solved
prettily if we but do a bit of in¬
telligent planning of our own in¬
over
Pacific?
is
it
other
its
be
to
me
1. The
Some
as
follows:
philosophy
prevalent
so
these
of
in
the
seem
to
V"'
of scarcity,
/
...
thinking of
The stark fact re¬
'30's, must be abandoned.
It
pervaded the Government,
agriculture.
business
2.
The
1
.
efforts
of
all
must
be
concentrated
the
output be absorbed in the market.
own
of low
ment
way
it is courting
itself, and pos¬
than it thinks.;
warrant,
serious trouble for
prices.
achieve¬
In
tremendous
can
People
the
upon
will
buy
no
other
physical
million, auto¬
a
mobiles
if they are priced low
dividualbusiness, affairs.
We sibly sooner
If peace comes in Europe in the enough; they won't buy a million
are in for genuine disillusionment.
homes if their prices are inflated
You may wonder why, in a dis¬ last half of 1944, the chances are
that the year will go down in his¬ by artificial labor costs and build¬
cussion of retailing, I am talking
.
in
such
doing
general terms.
I am
because retail trade de¬
so
the state of
our
whole
economy.
" Retailing
prospers as industry and agricul¬
ture flourish; reduce production
directly
pends
upon
lower the national income and
or
retail sales diminish.
a
Barely
merchant rise far above the
can
con¬
ditions which surround him.
effective solution of the
economic
the
day
social
and
more
means
The
complex
problems of
to the suc¬
of his business than his
cess
business
efforts.
business
own
Occasionally
a
and prosper in
the face of adverse surrounding
circumstances; ' generally
speak¬
ing, however, success and pros¬
perity are attainable only when
the economy as a whole thrives.
Any
attempt - to
appraise
the
prospects Of - retailing therefore
must look beyond its confines, as
well
grow
within them.
as
As
can
we
start moving .down the
long grade
eventually,
bring lis
hope, to normalcy,
which
we
will
will' encounter
number
of
highly significant phenomena.'
If
we
that the European War
we assume
will
end in
War in
1944
1945
tion which
favor
at
•stretch
a
or
the
and
1946
(an
Pacific
assump¬
to enjoy popular
moment), our first
seems
the
of
(1944) will be
an
acceleration
in contract terminations, the pace
quickening as the defeat of Ger¬
many approaches.;
With this will
road
characterized
by
reconversion
come
./
unemploy¬
the
tory
as
with
a
far
a
prosperity
war
that
of
very
war. v
How
Government
the end of
effectively the
deals
with
.
these
problems will have a great deal
of bearing upon the fortunes of a
enterprises.
The in¬
telligence ; with V which materials
are
released for the production
great
many
and
■?.
,
anti-social
mo¬
The year
1943.
:
be •sustained
will
by
measure
duction
Our
in
upon
and
considerable
continued
war
during. 1945
level
of
large
pro¬
1946.
and
employment
income
national
ent
in
will
be
measure,
and
depend¬
however,
the ability
of Government
together .to effect
business
maximum
reconversion
to
the
production
of y civilian , goods,
without impairing the Pacific War
effort.. As
I have
stated,
this
War.
of
With
the end
of the Japa¬
be within sight
the valley at the end of our
nese
war
we
But
a
period
of substantial
reconversion of our
economy
will remain, shortages
of goods will still be numerous,
civilian
planned
If
by
the
the
war
goes
"experts,"
it
as
there
will 'be
is
ment
during
much
these
policy.
many
must
the
surmount
issues
enormous
of
I keenly
As
far
I
as
society,
economic
know, dfttle
mo'nopoly
of
wherever
policy.
liberalization
of
freedom
us
to
individual
of
way
super¬
by
the pursuit of purely
interests, conduct guided
expediency or opportunism,
the
desire
selfish
to
one's
eat
cake and
have it, too—all these things will
lead only to trouble, and serious
the
tax- structure, the solution of the
labor-management
relationship,
the
by
some
matters,
modification of the whole Federal
and1
fully
find
can
public
affairs, unwillingness to assume
personal responsibilities in public
illegal
found,
we
enterprise.
Ignorance or
ficiality
on
matters
of
surpluses, the disposal of war
plants, etc., but should also call
elimination
as
realized
be
cannot
war
the
a
do you.
I further
believe that the magnificent op¬
portunities of the post-war world
a
for
us.
ize, for I believe in and cherish
the
assume
policy. It should embrace
not only such matters as contract
termination,
the
liquidation
of
trouble.
By their use some of us
gain ground for the moment.
But eventually we shall all suffer
together.:
may
trade
Most important of all, it
would require a specific commit¬
ment to a philosophy of free en¬
Returning to the specific field of
retailing, I think we all can agree
terprise.
This would be some¬ that the industry will fare pretty
thing new in the recent history of much as the country fares in the
this coqntry, for it would rule out years-ahead.
It probably will do
thousand
devices of monopoly,
competition, bureaucracy,
exploitation
and
obstructionism
a
well in 1944.
unfair
which
have
been
of
ranks
try,
labor
decades.
too
and
agriculture
tors
:»•
enterprise
has
distin¬
guished itself during the war and
quite optimistic about its pub¬
control
are
of
handled.
contract
as
duction
and unemployment.
The
big question will come as we ap¬
proach and reach the end of the
This
danger-'Japanese
a
direct
termination, disposal of surplus
stocks, resumption of civilian pro¬
are
point of view contains
the
I refer to such matters
free
lic acceptance after the war.
outside
individual merchants
for
feel that the system
us
continues
war
another fairly good
year or two, the level of profits
depending greatly upon how fac¬
in
common
If the
I would expect
Government, indus¬
,
Some of
war. Terrific shocks will
released
around
the
fallacy.
The productive and
technical genius of American in¬
dustry,; under war pressure 'and
then
with the aid and direction of the
depend largely
ous
by
warfare.
But
industry
come—and
colossal
test
it will,
series
a
of tremendous disturbances
liquidate the
war,
will
find
war
we
as
in
a
hazard
It
a
will
the
Regardless of public policy, re¬
presumably
will
have
some control over its own destiny.
Itds certain to be operating in a
highly fluid economy. Flexibility,
] adaptability and maneuverability
we,
And after .{he
ourselves
not
effect.
tailing
and
competitive
Its real test is vet to
a
would
their
ate it finds at the time.
free
be.We will have to face
I
to
upon the adequacy
plans and policies of this
and other governments,
as well
as
upon
the ability of industry
to adjust itself to whatever clim¬
has proved its ability
to do a similarly incredible job
of producing in
peace-time under
conditions.
as
of
no means
genuinely
and
guess
has
done
an
in¬
credible job in engineering and
producing
the
instruments
of
modern
be
world
Government,
greatly
workers, must be
ing
5.
Industry
must
ket
exploit
the
to
removed.
Government
and
every
utmost.
available mar¬
A large part
of the world will need
and
modernization.
rebuilding
Many
whose economic progress
have
retarded
open
;by
and
modern
China,
islands
now
modern
Africa
are
commercial and
areas
has been
laid
been
transportation
science.
Russia,
the Pacific
in point.
Their
and
cases
industrial devel¬
will provide tremendous
opportunities for American indus¬
opment
maladjust- try during the
years,
it
and
war offer untold
possibilities, and will stimulate re¬
altered
Every
one
of
world,
us
with
a
should be doing
great deal of hard, solid think¬
the future.
Not only
thinking be applied to
enterprises, but it must
be applied to matters of public
policy.
Neither
industry,
nor
about
this
must
our
own
labor,
agriculture,
Gov¬
ernment can solve the post-war
problem alone.
They must agree
nor
fundamentals and must evolve
on
a
nor
of
set
with
policies
which
courses
and
their
objectives
individual
of action may be squared.
A
labor
leader
recently
was
quoted to the effect that his sole
interest
was
working
short
in wages,
conditions.
run
this may be
a
hours and
For
the
will be highly important,
While
great. caution, will be required in
(the years ahead, it will be
it is not.
For the long pull
I might as sanely take
the position that nothing interests
me
except the profits of the busi¬
ness
kind
of which I
of
quently
in
our
am
thinking
found
society.
is
a
part.
This
all too fre¬
among
It
all
to
sary
such
assume
the
post-war
a
courage.
--V.'>'; ?;■'
In conclusion let me repeat that
retailing prospects in the period
directly ahead of us appear to be
moderately
good.
As time goes
forward, shocks of increasing in¬
tensity vyill be felt, not only by
retailing but by our whole econ¬
These will necessitate read-
omy.
ustment and realignment of plans.
The
smart
merchant
who
con¬
stantly plans ahead probably will
n°l suffer too severely from these
shocks.
Eventually
will
many
major
present themselves
issues
to all of
They will reach beyond retail¬
ing and into our whole economy.
us.
Retailers must define these issues
and in time make their contribu¬
tions towards
meeting them.
This
groups
assumes
that
the welfare of one group is some¬
thing apart Horn the public wel¬
fare.
Never in history has this
been less true than it is today.
places
one
a
of
more
responsibility
which
us
far
must educate others whose
upon every
in time will
reaching: in
implications
sponsibility
We must educate ourselves, and.,
however futile the effort may ap-l^°
pear,
large
world is
high premium will
be paid for exceptional intelli¬
gence coupled with foresight and
as
likely to be,
defensible
state of mind.
.
affairs
itself.
war
which lie ahead
effort has been made to formulate
a
;
months.
to
lowest
favorable national
a
upon individual workers by their
employers or by their fellow-
price,
rationing,
.material
and
goods obviously willwage controls probably still will
have
great
importance
during be
try if the foreign trade policies
necessary for a time until the
of this
and other countries are
this period.
We are already in
economy returns, if it does, to a
liberalized.
We
cannot
the early period of reconversion.
sell
normal equilibrium.';
Contracts are being terminated,
In brief, it is highly unlikely abroad, however, and at the same
labor ' is being released, the sup¬
time refuse to buy.
that the war will
end for the
ply situation is easing in certain business
Our domestic market theoreti¬
community as a whole in
instances.
There is little evidence
less "than four or five years.
It cally presents an opportunity for
that
either
the
Government or
expansion.
It has
already has begun to end, how¬ tremendous
most
employers are fully pre¬
been
estimated that a $22,000,ever, and many business concerns
pared.
An order issued last week will sustain severe shocks
long 000,000 market awaits industries
authorizing the production of a before
of
certain
peace is declared.
While whose', production
certain item caught a well-known
the probability is that we shall civilian goods has been stopped
manufacturer in-such a position
New products made
have another two or three years by the war.
that he couldn't get into produc¬
of greater or less war prosperity, possible by the phenomenal tech¬
tion on the item for nearly. six
nological achievements of indus¬
of
domestic
our
necesrisks and
tunity K to ; grow,
for
without brand new balance of political | assume them quickly. The alert,
growth in industry the employ¬ power among nations, some of the aggressive, imaginative merchant
will seize opportunities that others
ment problem cannot be solved. more dominant of which do not
So, too, must individuals be en¬ believe in the same kind of po¬ will, miss. The merchant who is
skilled in research and planning
couraged to produce efficiently, litical, social and economic orto
grow
and to progress.
Re¬ ganiaztion which we profess to * will succeed when others fail. In
a
world of kaleidoscopic change
strictions
all too
often imposed cherish.
may
trip down the hill.
im¬
seeing
free
of
bring scarcity, reduce de¬
economy, many of them mand and reduce output.
In my
coming together at the time of judgment, 55,000,000 jobs are im¬
the armistice, hence constituting
possible ill peace-time unless we
a fairly major shock.
How seri¬ can maintain true competition in
ously these 1944 shocks dislocate industry, labor tand agriculture,
the economy will
depend:t upon thus keeping prices and wages on
how well Government and busi¬ a
competitive level, and prevent¬
ness prepare to meet them. L, The
ing the exploitation of the public
year-ertd probably will find us through artificial prices and wage
with most of the present Govern¬ rates.
If we deny this we must
ment controls still in effect, but
acknowledge the inability of our
civilian production
will be in¬ population to support itself by
creasing, war production will have work.
Our only recourse will be
declined, sharply in some lines, to a system of subsidies and doles.
reconversion will be well under
4. Industry and all those who
way, unemployment will be ex¬ work must be
supplied with rea¬
tensive
in
some
localities, the sonable incentives, financial and
problem of the returning service otherwise.
The whole system of
men will be serious—in short, for business
taxation must be over¬
many practical purposes we will hauled if
capital is to be induced
be in the post-war period,
b
to
take
new
risks.
Business
If the war
with
Japan lasts which
behaves
itself
must
be
until 1946, our economic system
given an incentive and an oppor¬
of
are
tively,
terized by numerous minor shocks
prices
to: our
We
hope this thinking will material¬
the
Pacific
certain degree, will be
Illegal
the
settlement,
the
3.
solution
possible cost.
If industry is to do this it must
plan courageously and imagina¬
nopolistic practices must be de¬
beginning* of stroyed,
whether
in
industry,
the liquidation of our war econ¬ labor or
agriculture.; Their very
omy and will have been charac¬
purpose is high prices, and high
have'seen
will
problem
of contract
problem of reconversion is already
and the problem of at hand—it
simply will become in¬
disposal1 of Government surpluses.
creasingly serious as we move
For many a business this, to a
towards the end
of the
ment,
ing material prices.
year,
national income not
from
matters
Only
through the impact of the best
thinking
of
the
best
minds
throughout
the
country
upon
business problems and upon prob- '
lems of public policy can we hope
if
unemployment assumes
large proportions. This brings us
back to the necessity of produc¬
ing in quantity in a free market
the
in
enough in the conduct
the
such
,
plans in detail,
pressing
governmental
agencies
for clearance when necessary and
facts
during
culture.
and has been by ho means rarely
found
in
industry,
labor
and
evolves
that clearly
of some of
little
at
sound
a
preserve
In my
the
each
be
there, and this re¬
quires purchasing power as well
as
the desire to buy.
The fact
that savings are tremendous and
private debt reduced will mean
and
influence
portant problems.
unless
answer.
it?
has
unless
effect
not
The de¬
of
no
achieve
we
legion, and the very term "post¬
war planning" already is a hack¬
that
many
will
time system.
Industry cannot be
expected to do this in the absence
can
post-war reports and surveys are
neyed phrase.
desire
war
have
relating to the public welfare.
Special pleading alone will not
Obviously this calls for risks that inevitably attach to the
physical output of' pioneer in a truly free, competi-
committees,
mains
will
the
their production,
mand must
views
for
judgment, only by the pursuit of
sound economic policies by Gov¬
ernment, industry, labor and agri¬
in the
over
Post-war
suc¬
obsolescence
But the fact that
come.
tremendous
How
for them—which may
long before
of
prospects
goods—there is
production and sales pro¬
grams to put in effect when the
be
the
are
ceeding?
plan?
a
armistice affect your
an
actual
war
or
so
we
planning
the military sense,
industrial
our
and
Careful
.
can make
billions of
many
bring with it the need for a major
have been so
widely diffused
over the globe that we are unable
to grasp their full implications.
us,
intangible and
do
numerous
be sorely strained.
of
normalcy.
have been
from
production
after
to
years
■
•
and
people
collectively more serious as we
move through 1944.
An armistice in Europe, should
it
placement
many,
permanently; business, and what in detail do
How
us
feel that you expect to do about it?
manufacturers now have
is over everything many
completed or soon will complete
to
something
ap¬
return
moved
of
more
felt,
things
felt
some
proaching
impacts
the most
to
in
impact
be
wonder
once
to
exposed
tremendous
and
become
indi¬
that
assume
dislocations
vidual
will
to
be
ability of Government
and business jointly to keep the
econojnic system humming will
prepared are mated that we must find ways of
we
for that event, possibly only keeping
55 million people em¬
a matter of months
away?
Does ployed, far more than in any
the Government know
what it peace-time year in our
history.
appreciate
social and economic
our
reasonable
will
the
and
(Continued from page 164)
quarters
some
disturbances
severe
Post-War Prospects
187
,■
,
assume.
than
we are
any
scope
other
be
and
re¬
likely to have
It will be interesting
to see how well we carry it.
Thursday, January 13, 1944
THE
FINANCIAL CHRONICLE
COMMERCIAL &
'183
Port Authority
exercise
sovereign
of the State, it is hot a
asmuch
Moles
Municipal Mews
it
stated by McKeesport,
Solicitor Harry M. Jones.
was
City
office for a
Pennsyl¬
vania
cities and, in connection
with the current proceedings, the
$3,000,000 refunding issue, matur¬
McKeesport "News" of Dec. 29
ing in equal annual amounts from
commented as follows:
1948 to 1952 incl.-, was awarded to
Early this year City Council de¬
account
composed of the
cided to issue bonds and pay off
National City Bank of New York
worth of indebtedness
and the Manufacturers & Traders $400,000
certificates on which the city has
Trust Co., Buffalo.
,
been
paying
6%
interest.- A
The purchase price was 100.20
Philadelphia bond firm offered to
for 1.80s and the successful bid¬
sell the new bonds or buy them in
ders
re-offered the bonds to
itself at an interest rate not to
yield from 1.45% to 1.80%, ac¬
exceed 2 V2 %.
.' cording to maturity. A large de¬
But before any bonds were sold,
mand developed for the bonds
the
proceedings were
delayed
and the issue was all sold and
when constitutionality of the state
the books closed within a few
act making improvement certifi¬
est to a
Buffalo
able
were
the
As is
number of competing
received, the second
bids
high
1.80s being '
syndicate headed by
Gibbons & Co., Inc.,
offer of 100.155 for
made by a
George
New
B.
by
the way has
fol-
lowed a policy of eschewing new
funded debt
borrowings except
for emergency
purpose
during the
issued
past several years, having
only $497,748 in new bond issues
since Jan. 1, 1942. In noting this
fact in the latter part of last year,
Taxpayers' League of
Buffalo; Inc., said that it consti¬
tuted a "record that has never
even been approached in any. twoyear
period since 1918."
The
league pointed out that Mayor
the United
of
Joseph J. Kelly and a majority
the
members
of the Common
November,
had pledged themselves to
"no"'on all proposed bond,
Council
1940,
vote
elected
"which
as
Franklin
Delano
Roosevelt's own fate at the polls
Puerto Rico Electric
1944, this era of his will be re¬
membered by history as the tragic
The Roosevelt
era is the
era.
Revenue Issue
in
necessarily require in¬
creased interest rates on such
effect, con¬
barrier to their fiscal
obligations and, in
bloody
stitute
American
a
operations.
is
and
—failure
is true that
While it
depressed
of
era
failure and frustration
and
frustration
for
except,
the action
everyone and everything
of course, for Mr. Roosevelt
Treasury's repeated
part of the
1——
®
saying:
"Whatever
would
A
court declared the
unconstitutional, decided to
that
when
act
a
in
test
Court.
•
case
Supreme
to
■
of City Engineer L.
and his wife are being
used to represent taxpayers and
their bill of complaint is against
The names
F. Savage
members of
Council, representing
the city.
of the plaintiffs is
improvement certificates
be paid off by property
claim
The
raised the
properties as¬
improvements
been made. They declare that
certificates of indebtedness
not valid and binding obliga¬
of whether it would
not permit Federal taxation of
income on State bonds. Senator
William E. Borah took the lead
in assuring the states it would
not be so interpreted. And Cordell Hull, then Chairman of the
House Ways and Means Com¬
of the city as a
their bill of com¬
mittee, put a definite exclusion
clause to exempt local govern¬
who
benefited by the
and sewer improvements
against whose
for the
sessments
had
the
are
tions
and debts
whole, saying in
unless some
made
the
witnessed
anywhere."
Comptroller Frank
M. Davis
was cited for "his full co-opera-
of New York,
ernor
and
question
mental securities
tions of
•
said City,
.
.
.
plaintiffs aver that the Act
General Assembly of June 3,
The
from the first
after the
passed
act
revenue
•
been
2y2%srate is being of¬
by a selling group
headed by The First Boston Corp,
and B. J. Van 'Ingen & Co. and
including Blair & Co., Inc.; Lazard
bearing a
fered
him¬
today
Kindred &
Co.; A. C. Allyn
& Co., Inc.; Graham, Parsons &
Co.; Lee Higginson Corp., E. H.
Freres
& Co.; Barcus,
Co.; Knfeeland &
Rollins
16th Amendment was
t
A
ratified in
-•'•Ay
,:■■;
exemption has
re¬
%
1913.
similar
mained in the revenue
since,
secure
ment
code ever
nearly 100 efforts to
constitutional amend¬
remove
this immunity
and
a
.
to
taxation have all
been defeated. It is this statutory
restriction which has caused'the
from
Federal
Inc.;
Sons,
&
Lynch, Pierce Fenrier
The
Ranson-Davidson
Pacific."
"JVendell Willkie has spoken
and eloquently of the
vast reservoir of good will which
has been stored up abroad, espe¬
.
ity/'•.
TLe $20,000,000
issue, due semi¬
1, 1945. to
Jan. 1, 1969, inclusive, was under¬
written by B.
J. Ingen & Co.,
cially in Asia, for America," she Kneeland
&
Co.,
and Barcus,
added. "It was not stored up there
Kindred
& Co., who privately
by Henry Wallace's kind of inter¬
placed the $9,800,000 not included
national
handouts,
nor
Roosein this offering; about $8,000,000
veltian promises of impossible-toin Puerto Rico and the balance
fill freedoms. It was stored up by
in the United States. .
,•
realistic and idealistic Republican
The purpose of the present fi¬
statesmen at the turn of the cen¬
nancing is the funding or retire¬
tury,".■■ <■ v'v;' .y •
ment of outstanding obligations
amounting to a total of approxi¬
mately $7,290,000, for the acquisi¬
tion of the Porto Rico Railway,
Light & Power Co., and to pro¬
cogently
annually
from ~ Jan.
NYU Flans Symposium
On
Advertising
vide
symposium on advertising in¬
tended primarily for business ex¬
A
construction
and
reserve
fi¬
Imve
$20,000,000 and will have an inte¬
grated power system under uni¬
fied control doing a substantial
majority
of the total
eleo+ric
power business of the island. The
electric power business constitutes
funds.
On
completion of this
nancing the: Authority will
a
total outstanding debt of
of
ecutives-who have a share in de¬
achievement.
1933, P. L. 1466, is "unconstitu¬
termining the marketing policies
to
take
the
rather of their
They *• follow Treasury
With reference 'to the $22,470,-. tional and void."
organizations has been
roundabout way of removing the
000 Buffalo bonds which were to that the-city ordinance providing
organized by the New York Uni¬
barrier by starting court action to
mature in the two fiscal years be¬ for the new issue of bonds is like¬
versity School of Commerce, Ac¬
collect income taxes on interest
counts and Finance, it was an¬
ginning July 1, 1942 and ending wise unconstitutional and ask an
from Port of New York Authority
nounced today (Jan. 6) by Dean
June 30, 1944, the statement said injunction to restrain the city of¬
bonds.
about 95% of the gross revenues
John T. Madden.
that "these bonds have been or ficers from proceeding with their
of the Authority, the balance ber
The symposium is scheduled to
; „ ■
will, be paid at maturity out of plamj.
ing derived from varied services,
The bond issue ordinance was
begin Feb. 3 and will meet on
$15,470,000 raised by taxation, ;ahd
Jt is expected that eventually thl
consecutive
Thursday
evenings
$7,000,000 raised by .' selling1' Re¬ Adopted by City Council on May Sugar Allotment Forecast
Authority wdl derive all its rev¬
funding bonds."
CbfitinUihg•'■th'ej 17,1943.
About 80% Through 1944 for the following fifteen weeks. enues from the development and
The entire faculty of the School
statement said:
"
Industrial sugar rationing will
sato of electric power.
Port Authority Bond Tax
of
Commerce's
Department of
"City bonds amounting to $22,Under the provisions of the Acts
continue
through 1944 with al¬
Marketing will participate in the
595,000 will mature.' 'The1/ money Decision Awaited
of
Congress now - in force, the
lotments of about 80%, according
to pay them off, aside from that
The Tax Court of the United to a forecast by B. W. Dyer & symposium with Professor Her¬ bonds and income therefrom are,
which is obtained from the sale
bert M. Schiffer, assistant dean,
States
is expected to issue its
in the opinion of counsel exempt
Co., New York sugar economists
of refunding bonds, will have to
acting as coordinator and discus¬
decision shortly in the case in¬ &
from Federal and State taxes.
Brokers.
The Dyer analysis
be secured by continuing to levy
sion leader.
volving the legality of the Treas¬ says: ■■
The bonds are subject to re¬
not less than the back-breaking
Although topics scheduled for
ury move to
subject to Federal
"The further in the future a
demption prior to their respective
taxes for debt services which have
discussion in the symposium will
taxation the income- from bonds forecast is made, the less accur¬
maturities, upon not less than 30
include all the most important per¬
prevailed during the past two of the Port of New York Author¬
days'
ate it is likely to be. Neverthe¬
prior
published notice,
manent principles of advertising,
■years." •_
,
ity and the Triborough Bridge less, we believe that your longeither in whole on any date on or
special emphasis will be given to
Authority and, inferentially, from term plans should be made on the
after July 1. 1947. or in part, by
Pennsylvania Debt Funding the obligations issued by all simi¬ basis of sugar allotments of about the possible applications of these lot. in inverse order of their ma¬
principles to the' post-war period;
Act Attacked In
lar
entities.
The decision may 80% for 1944.
turities from moneys in the sink¬
This forecast is
The
symposium will be held
also have an important effect on based on the following beliefs and
McKeesport Case
ing fund on any interest pavment
at the New York University Fac¬
the tax status of all State and
date on or after July 1, 1949, at
assumptions:
(1)
the domestic
Constitutionality of the Act of
municipal bonds.
Regardless of beet sugar crop will be no more ulty Club, 22 Washington Square the following prices, plus accrued
the
Pennsylvania
General As¬ which
North. Those attehdih'g the sym¬
way the tax court rules in
interest: 104 on or prior to Jan, 1,
than 1,100,000 tons.1 (2) The total
sembly of June 3, 1933, P. L. 1466, the
present instance, the decision Cuban crop will be about 4,800,- posium will be,' 'Tid^pr^ed guest 1953, 103 thereafter and on orempowering local taxing units to will be carried on appeal to the
privileges at tHe'cldb-'fo? the dur¬
000 tons. About 800,000 tons of
prior to Jan. 1, 1957. 102 there¬
fund into general obligation in¬
ation of the sjdhpo^iufe'i
-*!'
United States Supreme Court.
/ ;i'U"
Hi
this will be required for ultimate
after and on or prior to Jan. 1,
debtedness
their
outstanding
>•!
The current action was offcially alcohol production. (3) Sufficient
1961, 101 thereafter and on or ,
street
and
sewer
improvement
Profit Potentialities %
prior to Jan. 1, 1965, and 100
certificates issued prior to 1933, is brought by the Bureau of Internal shipping will be available to im¬
Revenue and was the outgrowth
thereafter,
The "Rock Island" reorganiza¬
port all the sugar available for
under attack in a suit recently
of its attempt to collect Federal United States' consumption.
(4) tion offers attractive profit po¬
brought by several taxpayers of
the City of McKeesport, question¬ taxes on income from Port Auth¬ The European and/or Pacific war tentialities according to a detailed
ing the legality of a proposed city ority bonds held by the estate of may end either in 1944 or 1945. circular on the situation issued by
Eis In New York City
(5) Domestic refiners' production McLaughlin, Baird & Reuss, 1
issue of $400,000 bonds to provide Alexander J. Shambcrg. Evidence
Leon L. Eis,- formerly a partner
for
the
funding
of an
equal in the litigation was presented to will be smoothed to maximize Wall Street, New York City, mem¬
the tax court during 1943 in hear¬ their refining capacity. (6) Elec¬ bers of the New York Stock Ex¬ in the dissolved firm of Scheer &
amount of 6% certificates.
ings conducted both in New York tion-year political decisions here¬ change. Copies of this interesting
The litigation is in the nature
Eis, is doing business as an indi¬
City and Washington.
after cannot fundamentally bet¬ circular may be. had from Mc¬
of a test suit of the aforemen¬
vidual dealer from offices at 52
The burden of the Internal
Laughlin, Baird & Reuss upon
tioned State statute and regard¬
ter the economics of the situa¬
Wall Street, New York City.
Revenue
Department's
argu¬
request.
less
of
the
decision
handed
tion.", >
ment was to the effeet that in¬
down by Common Pleas Court,
Hion" in the
f
•
of
Water
Resources
Authority electric revenue bonds
Rico
,
should
street
Offered
of $20,000,000
Merrill
& Beane;
Co., Inc.;
Eldredge & Co., Inc.; The Mil¬
waukee Co.; Hawley, Shepard &
Co.; McDonald-Coolidge & Co.;
Field. Richards & Co.; The First
ta,tiqn of .the meaning of the 16th of old Doctor New Deal, America Cleveland Corp.; Whiting, Weeks
Arpepdment to the Constitution, slowly became a nation of hypo¬ & Stubbs, Inc.; Newton, Abbe &
which
provides that "Congress chondriacs and introverts. For¬ Co.; Ballou, Adams & Co., Inc.;
shall have the power to lay and gotten in
a mounting fever of J. M. Dain & Co.; Indianapolis
collect taxes
on
incomes, from many- imaginary ills, and many
Bopd & Share Corp. and Channer
miseries, was the Securities Co. /
whatever sources derived," and so self-induced
forth. The "from whatever sources Japanese cancer that was grow¬
The offering to the public, com¬
derived" is the key to the whole ing in the Pacific. In the end, it
prising $10,200,000 is that part of
reached to our very vitals."
thing.
the issue which is due semi-anThe Republican party was said
When
ratification v of
this
nuallv from Jan. 1, 1950, to Jan,
by
the Congresswoman
to be 1, 1969. Prices range from a 1.80%
amendment was being sought
"historically
the
party of the basis to 100, according to matur¬
Charles E. Hughes, then Gov¬
that the
owners
issue
new
Puerto
make all State
efrorts to
crisis arose plaint that:
."The ordinances authorizing
issuance of
the
issue of said certificates
ponds the only way to meet it." .
provided
that their payment
In observing that the pledges
should be secured solely by as¬
have been kept, the taxpayer
sessments for such street im¬
association stated that "no finer
provements and sewers, and
example of good faith on the
that they should not be obliga¬
part of elected officials has ever
issues
"Sun")
bonds
municipal
and
State
recently;,
plans and
their
with
carry
York City.
Buffalo,
.
'
bond¬
its
and mu¬ self, and his own personal ambi¬
which
have
strangely
nicipal securities subject to Fed¬ tions,
eral taxation, it does not follow enough prospered exceedingly."
that this larger question is speci¬
Beginning a nationwide speak¬
fically at issue, in the instant case. ing tour, she declared: "History
will record that at a time when
The following comment
on the
proceeding appeared in the New this America of ours was the
York "World Telegram" of Jan. greatest and strongest and richest
10 and was written by Peter Ed- in the world's nations, there nev¬
cates obligations of the city was
was
allowed- to come
son, one of its Washington corre¬ ertheless
questioned in an Erie court case. spondents:
upon us the costliest and blood¬
/ v
City officials waited for the
The?entire argument goes back iest war in all history.
Erie decision before continuing
"Under the tender ministrations
to a study of English, an interpre-
award was an¬
usually true of
bond sales, a consider¬
nounced.
of
holders, as well as the conten¬
tion
that
Federal taxation of
an
hours after
was
all
of
behalf
on
of inter¬
is considered
number of other
The case
previous occasion that Buffalo
appeared in the long-term market
was in September, 1942, when
a
last
The
argued by
Counsel for the Port Authority,
which participated in the action
view
opposite
appeal sometime
the
And Frustration
Boothe Luce (Rep., Conn.) declared on
record the Roosevelt Administration as
"years of humiliating failure which rivers of blood-—American blood
—are now seeking to redeem for us."
Addressing a Republican rally in Los Angeles, Mrs. Luce was
reported by the Associated Press (we quote from the New York
Representative Clare
Jan. 6, that history will
tax-exempt.
considered
expected to receive
in March,
tribunal is
Roosevelt Era
One Of Failure
political subdivision as defined
in the Federal revenue act and
therefore its bonds cannot be
ultimately, be
carried
to
the Pennsylvania
Supreme
Court.
The latter
last was re-elected to
four-year period. The
1
Jan.
on
powers^
will
matter
the
Y., will
ask for bids sometime in Febru¬
ary on an issue of $3,000,000 re¬
funding bonds, it is stated by
Comptroller Frank M. Davis, who
of Buffalo, N.
The City
Mrs. Luce Galls
the
as
not
does
■
,
.
.
r
v
■;
a
j
i
t
.
Volume
Number
159
THE COMMERCIAL & FINANCIAL CHRONICLE
4246
Dealers And Brokers'
189
A Preview Of Radio
IBA 'Drive Wilhirs Drive'
(Continued from page 163)
For War Loan
Cooperation With
Treasury Isi War lean Drive Requested
Cooperation of dealers and brokers with the Treasury's program
for, the Fourth War Loan Drive is requested in order to achieve the
securities as possible to in; vestors other than commercial banks and to obtain the maximum in¬
vestment of funds which are currently available or shortly to become
available to such investors.
7' / !'■"'. 7;!
:
; '
•
campaign's objective of selling
as many
,
*
In
letter
a
kers
.
Second
District
serve
on
Re¬
Federal
Jan.
Allan
10,
Sproul, President of the Federal
York, had
the following to say:
/
A'AA
Reserve Bank of New
"To help
.*
in achieving this ob¬
banking
institutions
have
been
requested
by
the
Treasury Department to decline to
jective
make loans to finance speculative
subscriptions
or
other loans
any
Government
on
securities
which
paid out of anticipated
income within a short period,
cannot, be
<
"To reinforce the action of the
banks in this respect,
brokers in securities
.
Services
dealers and
requested
are
"may not serve in the active com¬
ponents of the armed services." >
In
a
formal
statement,
Mr.
said
informed
he
that
had
beeh
Attorney
General
Biddle that the Constitution for¬
bids
by
service
simultaneous
the
in
the Treasury , to
limit the
amount of their, subscriptions, in
armed forces and in Congress.
the drive, to the amount of secur¬
which they will be able 'to
retail to customers,
other than
tical letters to the Secretaries re¬
by
j
ities
commercial
banks, for investment
after the drive has closed, plus
the amount required for the in¬
vestment of their
continue to
to
and
expected
are
be, idle. Generally
speaking, the volume of purchases
for subsequent resale to customers
should be small regardless of the
size of the investment firm, as
most customers will have ample
opportunity to subscribe during
the
If
drive.
dealer
a
broker
or
anticipates
placing a large sub¬
scription, it is suggested that the
jmatter be discussed with this bank
before the subscription is entered.
In order that there can be no mis¬
understanding as to the amount
subscribed by a dealer or broker
for his own account, subscriptions
for account of customers must not
be
entered
in
the
of
name
the
:
dealer
broker.
or
"In
further,'
Treasury's
■>
/•
V
of " the
support
for the Fourth
program
War Loan Drive, and in order to
avoid an unnecessary redistribu¬
tion of securities
the Govern¬
in
ment
security market following
drive, the public has been re¬
the
quested
to refrain from entering
also
sent
Dealers and brokers
requested
with the Treasury in
to cooperate
discouraging
the
placement
subscriptions for Government
se¬
curities
for
this
by their
'purpose."
customers
of
;;,77'■ '■%{}■
.
do not serve in the Army or Navy.
The
of
text
Roosevelt's
Mr.
A7A7:
statement follows:
"The
of
Secretaries
War
that the Constitution of the United
States forbids them from
both
in
armed
the
the Congress at
"Aside
from
announced
.
he
for
candidate
Pres¬
ident, but explained that his
tion
only
was
to
the
aid
ac¬
party
and not to seek the nomination.
In San Francisco advices of Jan.
8 to the New York
further
"He
indicated:
was
"Times," is
';
:
/
was
\\
;
the
by
a group
to
authorize
of Republican leaders
formation
the
in
time.
same
constitutional
the
committee to work for
a
of
a
delega¬
tion to the next National Conven¬
tion
our
election
after
that
these
of
that
services
their
to the
war
legislators
as
their paramount
was
believed
constituents
their
showed
declared,
was
war
Congressment,
effort."
;!
Standard Oil Of Ohio
for
either
not
was
a
candidate
the
Presidency or the
Vice-Presidency and, sought his
cooperation to meet the mechanics
of the
primary law. The choice of
delegation is simplified if the
voting carries a pledge to a par¬
a
ticular person.
"In
1936
delegation
Warren.
_
the
was
He
Republican
pledged to Mr.
released
gates immediately
mary
the
'
State
the
dele¬
after the pri¬
and the delegates attended
National
Convention
structed'."
'unin-,
full
authorization
broadcasting by the Federal Com¬
munications
Commission
television sets
in
before
available with¬
are
the
price, range from $200 to;
$300. w Production
of
television
receivers
is
Television
the
not
only
transmitters
task.
be
must
erected.
Interesting programs be
planned. ; Automatic radio relay
stations must be built to link key
cities into a network, That'^-no
or
frequency modulation
short
becoming
broadcasting.
Ultra¬
on
holds great
waves,
of
carries
the
The
electron
produced under
priority
rating,,
available
vast field of
Fourth
fulness
over
after
compact
a
the
and
It
war.
promise
tion ,.! of
'Even
"FM"
now
chemical
of
be
detects it.
.
7
radio
-is
7
sound
part
of
tele¬
serve
as
to
individuals,"
houses
his
said.
Mr.
"Furthermore, the publicity and
promotion
for the
drive, will
be
aimed primarily at the mass mar¬
of
ket, at getting individuals on pay¬
roll savings plans to buy "at least
an extra $100"bond.'
This leaves a
big
segment,
of
the
market,
tubes
always
keys to major advances,
.
,
in
so
broadcast
reception,
All these
namely, individuals who can in¬
vest from $500 to $10,000 or more.
This;'! numerous group offers us
an
opportunity for conducting a
'drive within a drive' in reaching
the big investors."
There is evidence of ample in¬
vestment
funds
hands
make
to
of
success
said.;
Manpower Problem Rearing Peak: Sen.Truman
genthau
■
not
new
this
individual
in
outstanding
an
drive, Mr. Folger
;>;A'!
developments will
munication,
the
application of
1944, but with
1944 as the year of expected deci¬
radiothermics, or radio heatings
is finding widely extended use in sion in the European
war, they
industry.
! The
use
of ' high- will date from it, as radio broad¬
frequency waves for heating is a casting dated from 1919.
7
com¬
of
IBA
Folger in his letter added:
era
electron
a
high that the Treasury
greater need than before
professional help in mak¬
genuinely effective personal
letter
of sight control
made possible by the development
new
In'a
all
in
solicitation
and possibly automobiles. All this
Will be part of the new service of
•As
in
our
ing
apparatus
o|"electron tubes in the field
microwaves. !'77;;,-':ivy.;:;;! ;■.!■!
so
even
for
vention to aircraft, ships/railroads
an
houses
member
that,
has
will be adapted for collision pre¬
radio, in
Association
Jan. 11.
on
the; largest figure of sales to indi¬
viduals ever previously attained
a
Because of spectacular wartime
developments,
Bankers
country, Mr. Folger
addition to their
participation in the Government's
overall
drive, they supplement
this appeal to the mass market
with intensive professional solici¬
tation of big-investors.
"The $5,500,000,000 goal set for
sales to individuals—greater than
micro-analyzer
■.!77
to
urged
elements
the nucleus of
the
in
sections of the
sub-microscopic par¬
ticles Of matter. If, for example*
bacterium,
con¬
drive"
Loan
America, said
letter
comprising
there is iron in
War
Investment
use¬
will
portable,
the
will
a
starting Mon¬
day* (Jan. 18), J. Clifford Folger,
of Washington, President of the
microscope, now
a high wartime
will
be
made
added feature in
an
Outside the -realm of radio
7
.
be realized in
Result Of Treasury
The
convertible
the
cumula¬
preferred
stock
$100, announced Jan. 10 that
entire
pany
such
030
for
underwriters
shares of Alk%
101,389
issue
has
been
Warrants
for
sold.
these
issued to the holders
were
common
stock of the
com¬
and upon the exercise of
Subscription Warrants 96,shares
sold.
were
Secretary of the Treasury Mor-
A' '(Continued from page 162) '
problems which will have to be
met in reconverting industry are
serious, because any change of
such vast extent is serious. They
not
are
The
maining 5,359 shares have
sold by the underwriters.
Many
insuperable.
outlined
were
retard
re¬
been
in
a
•
of
recent
otherwise
would
that
reconversion.
"Many of the problems will af¬
fect
retail
stores.
it
course,
retail stores
riod of
duction
that there be
tion.
and
'
.
before
no
to
war
pe¬
the
pro¬
resump¬
civilian produc¬
v'k:'v;!'
7
"Even if this
many
of
reduction
of full scale
tion
important
widespread unemployment
the
after
Principally, of
is. very
can
shares
of
each,/ share of
face dif¬
ficulties by reason of the
Millions
of
shift in
persons
for
"Retail stores will also have to
4*4 % cumulative
to their
inventories.
In many
instances,
the merchandise which you have
common
stock
including Jan. 15, 1954, and at the
rate of 2 shares of common stock
for
tive
share
each
of
convertible
4V4%
-
cumula¬
preferred
stock
give
The underwriters
/
include F.
S.
attention
merchandise,
quality that
furnished to the public before
now, although/ good
is not equal to the
you
thereafterr{vsuhject; to adjustment the
nv.enfs.>"
special
war.
In
some
cases
where
strategic
materials and
metals
were formerly used, the merchan¬
dise you are buying now is made
of substitutes which
the public
Corp., BlythT^ .Gpi^ Inc., ..Karriman. Ripley
^QQ^Inc., Lee Hig- only accepts because there is no
ginson Cqrp., Mellon Securities alternative.
Furthermore, it has
Corp.y\Snfiith|5 Bdrriey: & Co. and been manufactured in wartime at
somewhat greater costs than those
Hayden, Miller and Co.
prevailing
in peacetime.
Also,
during the war we have evolved
Ampco Metal Look Good new processes for manufacturing
The current situation in Ampco old
materials,
and
have
con¬
Metal, Inc., offers interesting pos¬ structed facilities for producing
sibilities
according to a memo¬ large
quantities
of
materials
randum issued by Ryan-Nichols & which were formerly too expen¬
Co., 105 South La Salle Street, sive for widespread use. Conse¬
Chicago, 111. Copies of this memo¬ quently, it is certain that after
randum
may
be had from Ryan-
Nichols & Co.
the
war
7;;'!;!•;;
there will be
new
lines
of merchandise with which some
Jan.
on
10
thereabouts, of 91-day Treas¬
bills to be dated Jan. 13 and
to mature April 13, which were
offered on Jan. 7, were opened at
or
!.
ury
un~
■
"
Heavy Stock .Danger
the Federal Reserve banks on
'
..
of this
details
The
10.
"For these reasons,- it'Is import¬
ant that while maintaining ade¬
follows:
Jan.
issue
are
• 8
applied for, $2,173,694,000.
accepted,
$1,000,234,000
not to accumulate excessive: stocks
(includes $57,446,000 entered on a
or long-run commitments.
v .'!.;
fixed-price basis at 99.905 and ac¬
"One of the greatest difficulties
cepted in full).
7
7
lhat followed the last war was
Average price, 99.905.. Equival¬
caused by large stocks of mer¬
ent
rate
of
discount
approxi¬
quate
InventprieSyTyoii take
as
chandise. VYou
call
that
even
will
care
doubtless
Total
re¬
time
we
successful in
have
been,
more
■
not be
but they will exist."
severe,
7
,
N. Y.
jscouptA' ^proximately
0.297 %
annum,"!"; -7: 7!' ,'■1v ''1 !-71 .!7
-Low, 99.905. Equivalent rate of
discount!; approximately
0.376%
per annum. - • A>;' !7y!y-!7;:!;; ;! '! J!!'!..-/ J
(34% of the amount bid for at
the low price was accepted.)
7
per
combating inflation,
and the difficulties should
Analysts To Hear
•
(
There
77The New York Society of Se¬
ilar
Analysts, Inc. will; hear
M.
Hobart, advertising
research
of
Curtis
Publishing
Company, on "Some Previews of
Post-war Advertising" on Janu¬
ary 14th.
■!, A;!.f ;;';v ;■■'!■'?" -7">" A.
curity
Donald
!,- Carlos Isreals, assistant to the
general counsel for Associated
Gas
& Electric,
will speak on.
"Deep Rock Aspects of General
Gas & Electric" on January 17th.
'All
Broad
meetings
are
held
at
amount of
,
Customer Problem
of
Decision,"
the
pattern of
our
by
the
momentous
arid what companies
shadowed
events ahead
be
upon to main¬
production even as the
called
proceeds to its final stages.
Specific securities which the firm
considers
of
particular interest
are also reviewed.
Copies of the
war
may
dealers
to
at
of
a
cost
$1 per copy, and may be obtained
from Morris Cohon.
obtained
request.
from
Co. Now NatT Amer. Bank
,
NEW
Trust
available
be
upon
American Bank & Trust
tomer
is
-
bulletin,
of what
economy is fore¬
timely
question
a
discussing
name
and
7
Bros.j
32
Broadway,
City, have issued "Year
New York
entitled "The Broker-Dealer Cus¬
Problem,"
7
"Year of Decision"
Strauss
bulletin
Cohon, 42 Broadway,
New York City, has had printed
a
new
study of the problem of
disclosure of markets or profits
containing an analysis of recent
cases.
This
interesting booklet,
bills
$1,004,706,000.
Strauss Bros
Morris
maturity of a sim¬
on Jan.
13 in
a
of
tain peak
The Broker-Dealer
brokers
was
issue
should
56
Street, New York City at
;
7 ■;
12:30 p. m.
-
.
mately 0.374% per annum.
7 7
7! Range of accepted competitive
bids:
;77;7S77:7 7',r7! 7
!•
JHigh, 99.925. Equivalent rate of
financially
strong
and
widespread
merchandising
concerns
like Montgomery Ward
mcurred
great inventory losses.
This
-!%-y...
.7
Total
,
as
The preferred stock is converti¬ have moved to defense communi¬
ble, at the option of the holders ties.; Many and perhaps most cf
into common stock, at the rate of these will move: back, -'A!;'!':.!!'"■';!,!';!;;:!!'7
2,33
'';;Aj!;777A A
standard merchandise will be
able to compete. ,..7
announced
that the1 tenders for $1,000,000,000r
be prevented,
retail stores will
population.
Moseley'&itJqiThe First Boston
ment that he
and
obstacles
Preferred Stoek Taken
spected
announce¬
standards
of commercialization of television
report by my Committee, and we
are.; doing
what we can to en¬
courage industry and Government
agencies to remove or minimize
in certain
reiterated
over¬
industrial processes'.
numerous
bankers
"drive within
a
connection with the Government's
and its
night to television.! It will require service will be
greatly increased.
from three to six months to get
In addition, RCA Laboratories has
the machinery in operation to re¬
succeeded in developing an elec¬
sume the manufacture, of
civilian tron
micro-analyzer, which, in-r
broadcast receivers!.
It may re¬
corpora ting
an
electron micro¬
quire a year after approval of
scope,; enables atomic identifica¬
contribution them
pledged to him. The signers
of the request said that they re¬
his
Investment
duct
of
na¬
strengths
democracy in the time of
crisis is a strong, virile Congress
to meet the problems arising from
the demands of total war,
The
of
convertible preferred stock to and
asked several days ago
and popular appeal, ablf.to open
a new era in service to the,
public.
efficiency
tion. One of the greatest
of the
would permit his name to be en¬
tered in the May primary as a
Republican
and
forces
of evaluation of service to the
Subscription
8 J that
post¬
a
the
,
shares
of California
Jan.
on
serving
barrier, there is also the problem
the
Entry In Primary
as
increasing
hew
duly elected members of Con¬ vision.
"tiny
tubes—smaller
than
In
both
television
and and
gress, as such, may not serve in "FM,"
much scientific progress acorns—may introduce "personal¬
the
active
components
of the has been made in connection with ized" radio. Small, compact re¬
armed services. The desire of the the
application of radio to the ceivers, and even transmitters may
national legislators to serve their war." The home-radio
instrument be built in a little case that will
Country under arms is under¬ of the future will be a combina-! slip into a pocket. The uses to
standable
and
appreciated
and tion television and sound-brOad- which such "stations" may be put
does them honor. However, I am cast receiver
incorporating "FM" gives the imagination much to
advised by the Attorney General and
play upon.
phonograph. ••
*
* •
par
Warren Permits Name
Governor Warren
V
and
4Navy have been instructed that
tive
!
iden¬
is intended.
are
television
and
development of great promise
war
-
subscriptions if subsequent prompt
sale of the securities
industry is fortun¬
an
questing! that they see to it that one-year job,
■'
duly eleced members of Congress
Alongside of television/ "'FM?
funds to the
own
extent these are,
President
The
as
have
to
,
instructed
Secretary of W^r Stimson an,d
Secretary of the \Navy Knox on
Jan. 10 that members of Congress
Roosevelt
Radio
ate
wartime development of no small
It
is
accelerating
achievement.
the air wilt be transformed
By FDR
Roosevelt
President
present' 7,
There should be no
expectation,
however, that when the war ends
Congressmen Barred
From Active Duty In
ail
•
,
and bro-<$>-
dealers
to
the
in
ation in the total war-effort of the
ORLEANS,
the
of
LA. —The
American
Bank
&
200 Carondelet Street,
has been changed, effective Jan. 4,
to the National American Bank
Co.,
of New
Orleans.
mmm
Thursday, January 13, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
190
0.75%;
Co.,
Rents Were Frozen Too Low By
OPA
Mortgage Bankers Association Study
FIRESTONE
far indicates that rents generally
according to a study by the Mort¬
gage Bankers Association of America published on Jan. 9.
Association members from 100 cities in 40 States, in a poll taken
experience
control
Rent
past three weeks, say
frozen an average
the
within
so
that rents were
men^ say
mortgage
The
their<$>
operating costs for rental prop¬
erty have risen sharply and that,
tablished by OPA.
Estimates of how
rents
way
areas
frozen
were
include
the largest property
in the country, some of
whom supervise thousand^ of res¬
idential
units.
The
study
is
of
thought
made
much too low
ranged all the
be the most recent
nation-wide basis on
to
on
a
subject and is one of
this
nearly
thirty which the Association has
underway on Wartime and post¬
from 35 and 40% in certain
to
less than 5%.
Many
expressed the view that,
problems in the real estate
and real estate financing field..
As to when rent control will
war
members
experience in their
no other group of
end, more than 91% of the MBA
citizens has made a greater con¬
members now believe that it can
tribution to stabilization of living
be successfully
accomplished in
costs than owners of rental prop¬
six months to a year after the
erty.
Many supplemented this
close of the war.
Of this 91%,
based on the
communities,
opinions collected in the
study have a special significance,
Mr. Woodruff added/ because the
The
filed
Stone
POWER
Florida
at
140,000
and
Stock,
shares
and
•ate
which
Broker-Dealer Personnel Items
If you
personnel
Financial
contemplate making additions to your
YORK, N. Y.—Frank L.
and Howard F. Linton are
Peel
Baker
Incorporated, 150 Broad¬
v.'-:
associated with Amott,
now'
Co.,
&
way..
(Special to The
BOSTON,
MASS.
—
Co.,
stock
was
& Co.
Pea-
Registration Statement No. 2-5267.
(12-8-43) .. ''7%v%\,"
amendment
Preferred
cumulative
value
Corp.
Plans
For International Currency Sta¬
bilization—J. H. Riddle—National
And
British
of
Bureau
1819
N.
Chronicle)
CINCINNATI, OHIO—J. Carl
rejoined L. Hoefing& Co., Inc., Union Central
Danford has
hoff
Mr.
Building.
&
Danford recently
connected
with
Browning
Co.
(Special to The Financial Chronicle)
CONN.—Chancey W. Hulse is now with Buckley
Brothers, 63 Wall St., New York
NEW
HAVEN,
Mr. Hulse was previously
with R. S. Dickson & Co., Inc.,
Research,
Economic
Broadway,
York
New
Reserves
23,
Manager
&
past was New Haven
for Philiips-Lovegrove
in the
Co.
(Special to The Financial Chronicle)
in
Present
Cary
Brown
and
$1.00; 500 to public libraries and
non-profit institutions.
Taking God Into Partnership—
Grenville
Kleiser, with an intro¬
duction by Roger W. Babson—
Funk & Wagnalls Co., 354 Fourth
Ave., New York 10, N, Y.—cloth
Edward D. Jones & Co., 300
North
Fourth St.
SPRINGFIELD,
Where's
investment
City.
counsellors
of
New
,!
TOLEDO,
has
Money
Coming
42nd
330
St., New York CityCentury
Fund,
OHIO — Norman
rejoined the staff
Font
Co., Inc., Equitable Securi¬
Central Republic Co.,
Inc.,
Co., Lee Higginson Corp.,
F
S. Moseley & Co., The Wisconsin Co.,
Arthur Perry & Co., Inc., The RobinsonHumphrey Co., Stroud & Co., Inc., Alex,
Brown & Sons, Laurence M. Marks & Co.,
The Milwaukee Co., Riter & Co., AuchinCo.,
&
&
Parker & Redpath, E. W. Clark
Hayden, Miller & Co,, Clement
& Co., Inc., Yarnall & Co., Atwill
&
A.
Co.
The
Ohio Co., Chas.
and Wm. P. Harper
W. Scranton &
& Son & Co., Inc.
Thomson & McKinnon's annual
due 1955.
Address—Los
tures
Angeles, Calif*
and
Processing
—
Underwriting—Dean Witter & Co.
Proceeds—For plant site, plant equipment
working capital.
Registration Statement
and
No. 2-5257. Form
S-l
Transition," is now being pre¬
pared and copies may be had
Registration
statement effective
p.m., EWT, on Dec. 8, 1943.
Offered by Dean, Witter & Co. at
the
New
York
Stock
Exchange
principal exchanges.
(11-18-43).
■
-
5.30
100
and interest.
STANDARD OIL CO. OF OHIO
Standard Oil Co. of Ohio has
registration
r,
c
new
each eight
held of record.
for
so
of
for
fot
Co.,
H.
M.
&.
Burr,
shares,of
close
the
at
stock,
common
share, pro rata,
of preferred
a
shares
of
common held of
business Dec. 29,
The
thereof
number
increased
be
2,500,000
to
shares—against
present authorized issue
2,000,000 shares of capital stock, $5
of
2,817
par—and
shares
unissued
to
sale
and
officers
be
Proceeds—To
porate
of
continue
common
for
Blyth & Co., Inc., 4%;
Inc., 1.25%; Coffin
1.25%Curtiss, House &
Following is
of its
seven
subscription warrants will ex¬
pire at 3 p.m. on Jan. 10, 1944.
Under¬
writers will purchase unsubscribed shares
and offer them to
public at price to be
hanied by amendment.
Stockholders on
Dec. 22, 1943, are to vote on amendments
to authorize 200,000 shares of cumulative
preferred
stock,
$100
par,
issuable
in
series, and 100,000 shares of management
stock, $10 par value.
Also to authorize
shares of capital stock of the corporation
to
be
changed into shares of common
stock, $10 par value, and that authorized
Byllesby & Co.,
Inc.,
100
each
1943.
share
each
of
rate
record
,
1.50%;
&
holders
the
and at the rate
1954.
common
the
to
subscription at $100
at
purposes.
authorized
to
be
but
reserved
employes.
for
used
general
cor¬
.
Registration Statement No, 2-5269. Form
S-l.
i:
(12-9-43),
Stockholders on Dec. 19, 1943, approved
the changes in the capital stock.
:
Registration
statement
effective
5:30
EWT, on Jan. 29, 1943.
-ivKW
Offered—Unsold
27,272
shares
offered
p.m.,
Jan.
1943 at
13,
&
Ripley
man
share
$100 per
Co.
by Harri¬
associates.
and
list of issues whose registration state¬
These issues
a
filed less than twenty days ago.
ments were
grouped according to the dates on which the registra¬
course become effective, that
are
tion statements will in normal
statement
tLri
filed a
for 101,389 shares
/jnntrDy11 iklft
after filing (unless accelerated at the dis¬
is twenty days
cretion of the SEC), except in the case
TIPPfPTTAfl
Rtonlf.
of the securities of
foreign public authorities which normally become
certain
effective in
seven
days.
unless otherwise specified, are as of 4:30
War Time as per rule 930 (b).
These dates,
P.M. Eastern
day follow¬
Offerings will rarely be made before the
ing.
DD.D;,:'V:, /:>'•:*'
,
17
JAN.
MONDAY,
SECURITIES
NATIONAL
&
CORPORATION
National Securities & Research
Corp. has
registration statement for 1,200,000
shares (bond series, low-priced bond series,
filed
a
preferred
priced
income series, lowseries)
and 40,000
stock series,
stock
common
stated in the state¬
The shares are in
investment trust fund,
open-end diversi¬
fied management type.
offering
ment
at
price
10%,
leaving,
after such
reduction of
principal, an aggregate firkt mortgage in¬
debtedness of $240,750.
is
York.
&.f*i "I.
Underwriting—National Securities & Re¬
Address—120
Broadway, New
trust.
search Corporation is
Offering—At
.
;
named sponsor.
5
J WEDNESDAY,
investment.
Registration Statement No. 2-5281.
(12-29-43.)
Form
i
■
COOPERATIVE
EASTERN
INC.
■
Eastern
filed
4%
JAN. 19
.
.
WHOLESALE,
'
.
.V
K,
■
-
V/',-
Cooperative Wholesale, Inc., has
a registration
statement for $100,000
registered debenture bonds authorized
1943.
Address—44
issue of
West
143rd
Str'eet,
New
City.
York
market.
Proceeds—For
Form
Registration Statement No. 2-5282.
(12-30-43.)
S-l.
$8,889,200.
Business—Investment
C-l.
amount
The aggre¬
shares of International series.
gate
Offering—Purpose of present offering to
noteholders is to reduce the principal
of all the notes outstanding by
the
RESEARCH
"Business—Wholesale dealer in groceries
and
allied
products,
including,
among
other related
activities, warehousing and
packaging.
Underwriting—None.
TUESDAY,
AMERICAN
REALTY
Realty
American
for
statement
the
extension
notes of Housam
first
mortgage
bonds is $25
thereof.
the co¬
operative directly to its stockholders and
Offering—The price of the
for
CO.
Co. has filed a regis¬
relating to the offering
of first mortgage serial
Realty Co., secured by a
deed
of
trust
on
the
Apartments,
Ranelagh
18
JAN.
5707
-
McPherson
St. Louis, Mo,,- in the aggregate
principal amount, of $240,750.
Address—5707
McPherson
Avenue,
St.
Avenue,
distributing
review, entitled "1944—A. Year of
and other,
will
ration
such
tration
CO. OF CALIF.
Knudsen Creamery Co. of Calif, has reg¬
istered $350,000 5 '/a %. sinking fund deben¬
KNUDSEN CREAMERY
Year of Transition
stock
15,
Jan.
shares
Cooley & Co., Fahey, Clark & Co.,
B. Hilliard & Son, Merrill, Turben &
J.
subscribe
preferred
share
one
of common
&
Evans
Co.,
right to
the
them the
share for
of
subscription
fund debentures due
headed by The First
dairy products.
A
request from Thomson &
McKinnon, 231 South La Salle
Street, Chicago, 111., members of
J.
of
Light
Corp.,
closs,
named
is
be named by amendment.
Offering—The 105,032 shares of 4%%
are being offered by the corpo¬
listing the underwriters on the proposed
offering of 101,389 shares of cumulative
convertible preferred stock
(par $100) as
follows: F. S. Moseley & Co., 10%; Blair
the bonds as 3VaS. at 104.019
debentures as 4VeS at 99.022.
Offered—The
$45,000,000
first
Allyn
C.
ties
Inc.
preferred thereafter, subject to
certain events,
■
•
;
Standard Oil Co. of Ohio has filed an
amendment
to
Its registration
statement
$10,000,000 4 Vs %
A.
.
adjustment in
mortgage bonds,
the
its
at
per
two
of
1943, awarded the $45,000,bonds due 1974 and
syndicate
a
;;;
; T
Ripley & Co.,
principal
underwriter.
for
p.m., Jan.
of
1943.
sinking
Business
upon
(Special to The Financial Chronicle)
Fields
the
(Problems
of
Post-war
Finance) — Stuart Chase — The
MASS.—Alex¬
ciated with Percy O. Dorr & Co;,
Inc., for several years, has re¬
joined Van Strum & Towne, Inc.,
the
Bonds
cloth— $1.00.
Haddon, formerly asso¬
to
Avenue,
transport system,
Underwriting—Harriman
.
Boston Corp.,
J.
From?
West
ander W,
1979
Cicero
South
■
■
Business—Air
an
warrants will expire at
5, 1944.
The
preferred stock is convertible at
the
option of the holders into common
stock, at the rate of 2.33 shares of com¬
mon
stock
for
each
share ! of
4 !4 7c
cumulative
convertible
preferred to and
The
mortgage
first
$10,000,000
Co.,
Twentieth
(Special to The Financial Chronicle)
York
- ■■
LOUIS,
Ward, previously with
Co. on Jan. 10,
000
Form
filed
registration statement
its
101,389 shares of AHk %
convertible preferred stock, par
rate
shares
3
..C---"!.%'/:•%
statement effective 5 p.m.,
Awarded—Florida Power &
Estabrook
—$1.50.
MO.—Frank
E.
O. H. Wibbing & Co., is now connected with
ST.
Bonds
$100 par value
tName changed
by
,
EWT, on Dec. 30,
and
City.
and
the
issuance
serial notes.
has
Ohio
of
Co.
to
giving
$100
3&.%■"series due 1974, and
sinking fund deben¬
J, Keith Butters—National Plan¬ tures were offered at 105Va and interest
and 100,462. and interest, respectively; by
ning Association, 800 Twenty-first the following underwriters: The First
Street, N. W.,
Washington 6, Boston Corp., Smith, Barney & Co., Blyth
D.
C.—(Pamphlet No. 27)—pa¬ & Co., Inc., Harriman Ripley & Co., Inc.,
Lazard Freres & Co., Kidder, Peabody &
per—250.
:
Co., Mellon Securities Corp., Stone & Web¬
ster
and Blodget, Inc., Union Securities
Electrical Appliances — E.
W. Corp., Glore, Forgan & Co., W. C. Langley
& Co., Shields & Co., White, Weld & Co.,
Axe & Co., Inc.—Tarrytown Press, Drexel & Co., Eastman, Dillon & Co.,
P. O. Box 157, Tarrytown, N. Y.— Harris, Hall & Co., Inc., Paine, Webber,
Jackson & Curtis, Tucker, Anthony & Co.,
Law—E.
Tax
,
American
Y.—paper—350.
Business
(Special to The Financial
1943,
at
filed eliminating the issu¬
preferred shares but providing
to bank of $5,000,000
of the
the
under^
Transport Corp.
1943,]
19,
Address—5959
$100 per share.
.
;
warrants will be issued by
to holders of record of com¬
stock at the close of business Dec, 23,
amendment,
for
the
INC.
Lines
Air
Chicago.
gives the offering price on
$100,
at
Share
2-4845.
United
stockholders Dec.
Subscription
will. be
19-17-41)
Amendment
LINES,
cumulative preferred stock,
from
the company
ana
Registration Statement No.
by
—convertible prior to 1954.
issue of
proposed
applied as follows
redeem at 102 Vi. the $52,000,000 of company's First Mortgage 5s ol
1954; $15,693,370 to redeem at $110 pei
share,
the
142.667 shares of company'!
67 preferred stock, no par.
Further de¬
tails
to
be
supplied
by \ post-effectivt
ance
it
which
in
853,170,000 to
42.
Oil
Standard
ment
Alternatives in Post-War Inter-
shares,
announced
United Air Lines, Inc., filed a registra¬
tion statement for 105,032 shares of 4%%
•
including
Proceeds
was
■'
AIR
UNITED
A-2.
Offering—The securl
ties registered are to be sold by compan)
inder the competitive bidding Rule U-5C
jf the SEC's Public Utility Holding Company
Act.
Names of underwriters and
price to public, will be supplied by postaffective amendment to registration state¬
Underwriting
101.389
shares, - it
been sold
preferred
Florida
pf
offering of
have
10,
purposes,'
registeret
Mortgage
&
1942,
writers..
Others
Ave., Miami,
V
of American
Bond
(Electric
total
the
to be available for working capital,
capital expenditures and general, corporate
Registration
with the
connected
was
Boston
subsidiary
Light
&
•'
,
conversion
for
23,
remaining
Jan.
pany
mon
Second
Of
The
Any
preferred.
Dec.
on
96,030 were subscribed for by stockholders.
oil
producing properties
and for other
corporate purposes.
Proceeds—Net proceeds from sale of the
cumulative convertible preferred stock will
be added to the general funds of the com¬
System) Is an operating public utility en«
(aged principally In generating, transmit¬
ting, distributing and selling electric enjrgy
(also manufacture and sale of gas),
serving most of the territory along tht
east coast of Florida
(with exception oi
the Jacksonville area), and other portlom
Chronicle)
CHICAGO, ILL.—Ralph D. Holhas rejoined the staff of
Daniel F. Rice & Co., 141 Jackson Boulevard.
Mr. Hollowell re¬
was
1
'MX
Chronicle)
lowell
First
'
'
208
(Special to The Financial
cently
*
nation Monetary Standards—Wal¬
Farwell,
ter E. Spahr, Professor of Eco¬
South La
nomics, New York University—
In the past Mr. CornThe Monetary Standards Inquiry,
with Blake Brothers
408 Graybar Building, New York
17, N. Y.—paper—100.
&
St.
Finance
with
now
Salle
active
The Business
ILL.—Andrew W.
Comstock is
Chapman
with the
and the
Committee : in To-
ledo,
of
St.
staff
the
(Special to The Financial
CHICAGO,
War
Gordon
Co., Inc., 50 Congress
&
been
Victory Fund Committee
Financial Chronicle)
has/ joined
Grant
Paul
Bosworth & Co., Toledo
Building.
Mr. Fields has
recently
E.
Vr-.
i?ower
.
Braun,i
Trust
S.
:
Business—This
please send in particulars to the Editor of The
"0Chronicle for publication in this column.
NEW
'
.
shares not so re¬
served would be available for issuance for
Par,
Address—25
reserved
be
to
are
the
of
plied by amendment
Fla.
to the public
the underwriters and offered
Co.,
EWT,
each" 8 shares of common stock,
price to be fixed by amendment. The
stock will be purchased by
a
Debentures,
the
on
Cumulative
pre¬
Ja, price to be filed by amendment.
Stockholders of the company are to meet
on Dec. 22, 1943, to approve the new issue
qf $10,138,900 of cumulative convertible
preferred
stock and
488,888
additional
shares, of common stock,
a
portion of
Interest rates on the
and the dividend
preferred stock, will be sup¬
$100
Bonds
price stabilization..
First
of
share
one
&
at
$10,000,000 Sink¬
due Oct. 1, 1956;
Debentures,
Fund
of
Corp., 4% ; Merrill Lynch, Pierce,
& Beane, 2.75%; Merrill, Turben
2%; Morgan Stanley & Co., 10%;
Maynard H. Murch & Co., 1.25%; Ohio
Co., 1%; Paine, Webber, Jackson & Curtis,
2.75%; Arthur Perry & Co., Inc., 1.50%;
Shields & Co.,
2.50%; Smith, Barney &
Co., 4%; Union Securities Corp., 2,50%,
and White, Weld <fe Co., 2%,
t
:
Registration statement effective 3:15 p.m.,
Fenner
unsubscribed
CO.
Co.
record
a
rate
the
ferred for
1, 1971;
aonds, due Oct.
ing
Light
$45,000,000
SEC
with
control will have
maintained along with other
LIGHT
&
&
Power
purchase the new
be issued to common
date to be named
to
stock will
at
later
body & Co., Lee Higginson Corp. and Stone
& Webster and Blodget, Inc.
FLORIDA
Underwriting—F. S. Moseley & Co., Bos¬
Offering—Rights
Hig¬
Lee
Securities
.
refining
stockholders of
2.75%;
Co.,
&
Corp., 4%; Mackubin, Legg & Co.,
McDonald-Coolidge
&
Co.,
2%;
Laurence M. Marks & Co., 1.50% ; Mellon
Cleveland,
Building,
:
preferred
Peabody
Kidder,
ginson
ton, is named principal underwriter. Others
Will be named by amendment.
per
Kidder,
Co.,
&
par
and marketing of crude pe¬
troleum and products derived therefrom.
•»:
0.75%;
Clark & Co.,
Richards & Co., 1%; First Boston
10%; First Cleveland Corp., 1%;
Harriman Ripley & Co., Inc., 4%; Harris,
Hall & Co., Inc., 2%; Hawley, Shepard &
Co.,
2%;
Hayden,
Miller
&
Co.,
3%;
Hayden, Stone & Co., 1.25%; Hornblower
& Weeks, 2.75%; W. E. Hutton & Co., 2%;
Business—Direct activities are principally
the
Co., 0.75%;
Estabrook •&
&
1,50%;
Co.,
1.50%;
Address—Midland
.
Dain
M.
Fahey,
Corp.,
amendment.
by
oiuo.
by
Hayden,
Co.,
stock,
common
The dividend rate on the
supplied by amend¬
common stock are
to
meet
the conversion
privilege of the
preferred stock and will; not be offered
separately.
The conversion rates will be
Harriman Ripley & Co., Inc.,
Otis & Co. (Inc.), Blyth & Co., Inc., Lazard
Freres & Co., Lehman Brothers, The First
Boston Corp., Glore, Forgan & Co,, Smith,
Barney &
Co., Goldman, Sachs & Co.,
Merrill
Lynch,
Pierce, Fenner & Beane,
Union Securities Corp., Hayden,.Miller and
believe that rent
to be
$100
at
1944.
11,
of
shares
share.
per
H.
1,25%;
Field,
indeterminate
an
preferred stock will be
ment.
The shares of
series
Offered—Jam
share
,
saying
by
$25
.
that rent is the
majority expressed the opin¬
about the only item in the cost of
ion that considerable liberaliza¬
living that has held absolutely
tion of restrictions can at least be
firm in the anti-inflation effort.
"There has been no break in put into effect before that time.;
Eight and a half per cent of the
the rent front as far as holding
members do not anticipate an end
prices down is concerned," H. G.
of price control restrictions until
Woodruff,
Detroit,
Association
several years after the war and
President said.
opinion
CO.
has filed a
lative, par value $100 per
managers
analysis,
Co.
statement for 450,000 shares
preferred stock, cumu¬
share.
Address;—Firestone Parkway, Akron, O.
Business—Excepting
in
the
manufac¬
ture and sale of certain war materials, the
company and
its subsidiaries are princi¬
pally engaged in the manufacture and sale
of rubber tires and tubes for automobiles,
trucks, farm implements, airplanes, etc.
Underwriting—Harriman Ripley & Co.,
New York, and Otis & Co., Inc., Cleveland,
head the list of underwriters.
Others will
be supplied by amendment.
;
; ^
Offering—Price to the
public will be
supplied by amendment.
Troceeds—Net proceeds willbe used, to¬
gether with additional, funds of the company, for the redemption
of the 454,129
shares
of the company's 6%
cumulative
prefeerred stock, Series A,, presently out¬
standing, at $105 per share and accrued
dividends!
The aggregate amount required
to be paid upon such redemption is $48,364,738.
' \
Registration Statement No. 2-5284.
Form
A-2.
(12-31-43.)
-'r
4 Va %
of
,
members
organization's
many
property
owners
have been increasingly
penalized under the ceilings es¬
final
the
in
f
,
RUBBER
&
& Rubber
registration
shown
that their experience has
of 13.8% too low.
TIRE
Tire
Firestone
,
too low,
frozen about 14%
were
par
number of
OFFERINGS
Shows
and
value,,
$100
J.
Davis &
Paul
Co.,
Flotations
Calendar Of New Security
each
the interposition of
any
dealer, broker or salesman.
is being paid to anyone
in conjunction with such sale. :
Proceeds—Proceeds are. to be used to
ment
commission
No
purchase of the new ware¬
office building purchased in,
in New York, the purchase
price of which was $50,000 cash on taking
title and $12,000 in the form of a pur¬
chase money mortgage payable in install¬
ments over a period of seven years.
finance
house
July,
notes
of
the
and
par
unpaid mortgage
value of $267,000
'serial
which,
to be
value,
plan of reorganization, are
reduced by 10% to $240,750 of par
and on outstanding second deed of
by
the
on
which
there
is
an
$40,500.
Underwriting—None.
unpaid
trust
balance of
without
underwriter,
building.
Amer¬
ican Realty Co. was incorporated July 21,
1943, to acquire and own the equity in
the Ranelagh Apartments subject to the
first mortgage deed of trust, securing the
outstanding
principal amount
being sold by
are
interested in the cooperative move¬
friends
Louis, Mo,
Business—Apartment
$25
securities
The
the
and
1943,
Registration Statement No. 2-5283.
(12-31-43.)
Form
S-l.
UNITED STATES OF BRAZIL
UNIDOS DO BRASIL)
(ESTADOS
Brazil (Estados Unidos
Do Brasil)
has filed a registration state¬
ment for $76,651,500, based on the aggreUnited States of
Volume
Number
159
-THE COMMERCIAL & FINANCIAL CHRONICLE
4246.
CENTRAL ILLINOIS
in-the
gate.' principal
turers
of
State
United
States.
would
Underwriting—Van Alstyne, Noel & Co.,
New
York, are
named principal underwriter.
Others will be named by amend¬
ment. 'A .
.
/■ Z
Offering—Price
to the public Will'.be
applied by amendment.
Proceeds—For working capital and other
amount' of, the - Brazilian
and Municipal external dollar bonds
outstanding on Nov. I, 1943. : The figure
given /represents the aggregate ; principal,
amount ofall of the hew bonds which
be
outstanding if all Of .such bonds
were converted pursuant to. an
option in
the'registration statement.
The
registration is in respect to the
assumption 'of responsibility for the.'pay
packing
plywood
oases
and
dollar
in
by governments of the
municipalities of Brazil and
Institute
of
the
State
of
denomina¬
Sao
We
Paulo,
as
'■ .'-A'";:' ■/ v.: " /'1
z
State of Sao Paulo 7% secured sinking
fund gold - bonds- (coffee realization loan
of 1930), dated April 1, 1930, due Oct. 1,
follows1.
■"
v' '.v-:
"
*
of
State
FUND,
.
INC.
Street, Rock*'
11
(b)
(1) of the Public Utility
Holding Company Act.
No portion of the
proceeds of the sale of the common stock
registered Will; be- received, by Central.; Illi¬
nois.
Consolidated Electric has petitioned
.V1 Associated Fund, inc., has file'd'
a
the
-.regis-
Commission
the
it
payment certificates of $100 each, with
insurance, and 4,000 installment payment
units of $100, without insur¬
for
competitive
the
tfatibn'statement for/5,000 full paid certi¬
ficate units of S100 each; .1,000 installment
bidding
sell
the
exemption
an
Commission's Rule
can
stock
at
from
requirements
U-50
in
of
that
order
negotiated sale to
Central
Republic Co., an investment firm
Chicago/ which firm subsequently/would
make a public offering.
*
/
fund; bonds, external water, works loan .of ance. ■/' A //, '
' '.;••/
Proceeds—Consolidated plans to use the
1926, due Sept. 1, 1956.
v. A/A/ I/AA/A>
/Address—506 Olive Street, St. Louis, Mo.;
proceeds to retire Federated Utilities, Inc.,
:
State of Sao Paulo 40-year 6% sinking
Business—Investment trust.
•;
••
5'4 'k bonds, and to apply the balance to
fund gold bonds,, dated July • 1, 1928, due
'.Underwriting—Associated Fund, Inc.,: Is
the purchase In the open market of Con¬
July 1; 1968.
•
r-. :■ ,v.v//;■///,A
named
of
certificate
Jan.
at
the
15,
ance
S-l.
:
*
.
sponsor.
8%
-
Sinking fund; gold bonds/ external loan of: 7, 1943. rOffering price' 100. •'
1921/ due Oct. 1, 1946.: A/ A ,.V ■/"
Proceeds—For investment.
-./A''/.
State of Rio Grande do;Sul\ 4Q-y.ear/7%
sinking fund gold bonds, external loan of
effective
municipal- loan, 40-year 7",i sinking fund
gold bonds,/dated June/!,/ 1927; due/ June
•1, 1967. •
a
//o A////A,//A// ///
>: state bf Rio Gra')rde-^b^9ub$i^.vext«mal''
sinking- fund gold bonds; vof / 1928> : dated
June ,1/1928^ /due:June 4pl960.///;////A;
i-V State./of Minas Geraes ■ 614 ck- ■ secured
discounts
State of Pernambuco 7 %. external sink¬
ing fund gold bonds, dated March 1, 1927,
due March 1. 1947. :A//./A; a A;A/ ZAA//.
;
State of Rio de Janeiro external 30-year
6 V2 c/a secured sinking fund gold bonds of
1929, due Jan. 1, 1959../ ,. ; A-///*/>;,/;/:•/,
Z State of
Parana
7%
external sinking
fund consolidated gold bonds, dated March
15, 1928, due March 15. 1958. A
/ // //-..
!
State of Santa Catarina 25-year sinking
fund external 8%
gold bonds, dated Feb.
1/ 1922, due Feb. 1, 1947.
;
1,
1951,
$277,500.
-
Amendment
BON WIT
1, 1921, due Oct. 1, 1946.
of the United States of
-
1
Jan.
filed
;
-
suant
to
its
6%
■;/':/'/
,
the
,
cumulative
prior
preference
stock
the
on
basis
of
$100
principal
shares
of
income
debentures
stock
common
two
and
for each share of
,
.
.
stock registered,, at the
present rate of
cohversion, which may vary from, time to
, City of Sao
Paulo 6 l.J% external secured time in the event of certain contingencies.
sinking fund;gold bonds ofV1927, due May
The shares are issued and outstanding and
'15,': 1957.
/
//' -/ A.
A'' AA";' /'■';>/;'/ V,'". \ /"
the offering does not represent new financ¬
City of Porto Alegre 40-year/7lkr'c/sink¬
ing by the company.
',-••■/
//A-;,/'■/;/ //"-'
ing-fundgold bonds, external ;loan of 1925,
Address-r-721
Fifth Avenue,/ New- York
due Jan; 1, 1966.
• / \ A'
■ / ?. : 'A'-z/A//! v
■City;//...",//•
;..//-.'//:X;/'/.v.:\z■ f..,.. '/,:
)
City of Porto; Alegre-40-year: 8 fa Sinking
Business—Owns and operates one of the
/fund gold bondSj external loan of 1921, due
outstanding large specialty stores/ in' the:
Dec. 1, 1961;
V// A.v
// /■/'■• ;,A-/
A:
United States.'•''/a/,/.^':+///;//A'. 4'//;// •/'."/,/',;/
A
City of Potto Alegre'"40-year 7^./Sinking
Underwriting—Allen & Co.," New / York
fund gold, bonds,/ external ioan/: of 1928,
,CRy, ;/is named /principal/ -underwriter 1 for
:due Feb.". 1, 1968. ; A^'A.:- ■'.'fy A /A'/' /A;both the. preferred and common stock. :.A
Under the decree-law : effective Jan.. 1,,
Offering—The offering price to ■ the pub¬
1944, the payment of interest and amor¬ lic of both the
preferred ,; and common
tization of the bonds listed above will be;
stock will .be supplied by amendment.
The
made in/accordance .with Plan A or Plan B,
prospectus ' offers
the • 35,565
shares of
at the option of the bondholders. /,
/ ; 5*4
% preferred -and 20,000 shares of coriii
.Under
Plan
A / the original .principal
mon. stock.
The shares are presently is¬
amount; of / the .bonds ; will
remain
Un-;
sued and outstanding and are being pur¬
•changed,: but the interest rates will be chased
by the
underwriters from Atlas
reduced to. new fixed amounts.
The re¬
Corporation.and its subsidiary Rotary Elec¬
sponsibility for service - under Plan A re-, tric Steel- Co.
Atlas Corporation, directly
mains with the original obligors.
'
/ and
/indirectly, has been the controlling >
V Under Plan ,B there will be a reduction stockholder of the
company since its or¬
of 20'4
of the principal' amount of the
ganization. /
//.-v /..,,./
//-'-'■ /■; '':./ i
•bonds in the ■ case of State of Sao Paulo
Proceeds—Proceeds will go to the Selling
7% secured sinking fund gold bonds (Cof¬
stockholders./-•" '•//'•//"/'// •' /'.-/ ■///:-.■■-../
fee Realization Loan of 1930), due Oct. 1,
Registration Statement No. 2-5245. Form
1940, and a reduction of 50/r in respect A-2.
(10-29-43).
</
j
,
•
.
;
■
•
to
sell
and
such
shares
•
of
common
also proposes, under certain
conditions, / to issue and sell $5,500,000
company
principal amount of/ new serior debentures
and
to
apply the proceeds of the sale of
senior debentures, together with
other funds, to the redemption of the out¬
the
There are $7,100,000
face amount of 20-year 5 J4% sinking fund
due March 1,
The interest rate
gold debentures, Series
1948, now outstanding.
A,
.
Interest
above.
The Income debentures
annum.
bentures and
within
serior de¬
new
the
the right
exchange unless
company reserves
the
offer
certain
a
the
to
to, other indebtedness, of
The
company.
to
revoke
date
of
holders
of
less
not
than. 57,250
accept
shares of the preference stock
The proposal to issue
stock purchase warrants! to pres¬
the
common
offer.
stockholders and
ent common
Amendment
defer
to
...
any
stock
common
sale
of
not
stockholders
common
effective
Buttes Oilfields,
;
tration
statement
class
common
A
date
the
and
senior debentures
new
and
issue
is
con¬
proceeds to the company
debentures and shares of
common stock offered will Consist of shares
of
the
preference stock exchanged
and
all such shares of preference stock Will be
retired and the capital, of the company
will be reduced by the suni of $100 for
INC.
inc.,
for
stock,
has filed
306,305
$1
par
regis¬
a
shares
each
of
.
.
,
retired.
For
each
share,
of
issued pursuant to offer, the sum
will
be
deducted
from
capital sur¬
to capital ac¬
ATLAS
PLYWOOD
■'
CORP.
"
Atlas
tered,
par
,
Plywood
150,000
Corporation
has
of
common
shares
value $1 per share.
Address—1432
Mass.
.
Statler; Building,
CORPORATION
OF
Elastic Stop Nut
has
Corporgtxon of America
$3^500,000 15-year sinking
registered
fund
Boston,
/
of
the
manufac¬ effective date.
Jan.
on
partner
a
in
Col. Hall
20.
is
Chief of Reconnais¬
of the Army Air Staff. ;
as
William
Frew
withdrew
James
H.
Carter,
Carter & Co., New
Jan. 6.
/
from
in
partner
York, died
on
,
.
Money In Circulation
.
/'/
;
;
The
/; Jield
-
Home Insurance Co. of Hawaii,
Ltd., has
registered 20,000 shares of common stock,
par value $20. "■■;•/■•■' //A
Address—Honolulu, Hawaii.
Business—General insurance/
Underwriting—No underwriter named.
Offering—Stock is to be offered to stock¬
shares to be taken by
Cooke, Ltd., fof investment;
which. 7,683
Castle
and
taken by Hawaiian
investment; shares
representing warrants'which are not exer¬
cised, and full shares representing frac¬
6,407
shares
be
Trust
Co.,
for
tional
interests
to
-Ltd.,
will
be
auctioned
at
an
price of $30 per share on Jan. 31/
or such
subsequent date as board
directors may determine and proceeds
excess ; of
$30 per share will be dis¬
upset
1944,
Treasury
in the United States Treasury
and
HOME INSURANCE CO. OF HAWAII, LTD.
Federal
by
Reserve
Banks
and agents. The figures this time
are
for Nov. 30, 1943 and show
that
in circulation at
(including, of course,
the money
that
date
that held in bank vaults of mem¬
ber banks of the Federal Reserve
System) was $19,918,176,489, as
against $19,250,318,310, on Oct. 31,
and
$14,210,452,014
on
Nov.
30,
1942, and compares with $5,698,214,612 on Oct. 31, 1920. Just be¬
fore
outbreak
the
of
the
first
World
War, that is on June 30,
1914, the total was $3,459,434,174.
to stockholders whose subscription
tributed
exercised or whose frac¬
are
sold.
If shares sold
underwritten terms will be
filed by post-effective amendment.
Proceeds—For capital and surplus.
S. C. Bond
not
rights
are
tional
Quotations
interests
auction
at
are
A
E.
H.
Street,
Pringle & Co., 18 Broad
Charleston, S. C., have
representative list of :
city
Registration statement effective 3 p.m., and town bonds, and a few of the
EWT, on Dec. 31, 1943. ; larger school districts showing in*
terest rates, maturities and
bid
ILLINOIS POWER CO.
asked prices, as of Dec. ,31,
Illinois
Power
Co.—name changed
on, and
Nov. 1, 1943, from Illinois Iowa Power Co.
1943.
Copies of this interesting
—has
registered $65,000,000 first mort¬
list may be had from the firm
Registration Statement No. 2-5260.
(11-26-43.)
S-l.
Form
;:
prepared,
a
South Carolina State, county,
,
:
engaged in the electric
upon
request.
Zw—
I
iiHUIilli'
.
Interesting Utility
and gas
A
Underwriting—Names will be
supplied by
post effective amendment.
?
Offering—Company proposes to sell the
bonds through competitive bidding pursu¬
;
Jan.
purchase
will
be
15,
ant
The
amend¬
the
/
net proceeds
warrants.
supplied
■'
by
■
N.
Commission's
1959/ with
"'
J.
to
Rule
U-50..
Price to
public will be supplied by amendment.
proposes to use the
Proceeds—Company
from the sale of bonds, with
$4,000,000 to $5,000,000 to be borrowed on
bank notes and a portion of its treasury
to
funds
Underwriting —• Principal
underwriters
are H. M./Byllesby & Co., Inc., and Ladenburg, Thalmann & Co., both of New York.
Others will be supplied by amendment.
Offering—Price to the public will be
supplied by amendment.
Proceeds—Proceeds
from
sale
will be
.
redeem
its
first and refunding
follows: Redeem on
April
used
capital.
There
the
principal amount of $1,000 a non-detach¬
able
stock
purchase warrant giving the
will
1943,- to defer
'
due
Business—Engaged in the manufacture
sale of self-locking* nuts of a
wide
variety of types.
/
•
San Francisco.
Amendment filed Dec. 24,
,
largest
(12-24-43/) './.
S-l.
and
Registration Statement No. 2-5268.
Form
S-l.
(12-7-43.)
Statement originally filed
in
rate
■
"
Address—Union,
serve; for properly acquisitions, etc., $45,000.
Price per unit for securities to be
offered for cash is. $1.60, with no under¬
discounts «and commissions.
stock
interest
ment.
as
follows: liquidation of general
Indebtedness;
$40,000;
operatingt capital,
$5,000; general cash reserve, $60,000; re¬
writing
debentures
annexed
*
/•';
Business—One
regis¬
stock,
as
England Public Service
Coy offers interesting possibilities
New
.
bursed
WEDNESDAY, JAN. 26
New
Department in
Washington has issued its custom¬
standing bank notes of $3,150,000/ with ary
monthly statement showing
prepayment premium and; gccrued interest,, the amount of
money in circula¬
and to increase working capital.
'
tion after deducting the moneys
Registration Statement No, 2-5280.
Form
company
NUT
STOP
AMERICA
_,
(12-31-43.)
.
business in Illinois.
ELASTIC
.
Schedule B.
.
Hutzler,
partnership in Moore, Leonard &
Lynch, Pittsburgh, Pa., on Jan. L
Offering—Price to the public to be sup¬
plied by amendment.
; Proceeds—-To
the
payment
of
out¬
,
effective date. / ■ •
,
Form-
.
Philadelphia, Pa.
Business—Operates
supermarkets
en¬
gaged in the retail sale of groceries, meats,
meat products, vegetables, etc.
Underwriting—Eastman,
Dillon
& Co.,
New York, head the underwriting group,
with
names
of others to be supplied by
amendment.
&
.
Offering—The company plans to reor¬
ganize its • capital -structure. and put it
to service the
virtually, if not zwholly/ on a common
bonds listed would be $4,905,696 annually;
stock basis. ,/The exchange features of the
jthe interest for the first year being' $2,.-; offering are limited to. /holders of the cor¬
874,428 and amortization $2,031,268.
poration's, .outstanding -6f/h preferred stoqk
Under plan, the balance of the, funds
and to holders of its 8% unsecured notes.
set -aside after deducting interest will be
The offering for cash is. limited to stock¬
used
to. purchase
bonds when quoted holders of record as of July 15, 1943. If
below
par
or
to redeem. bonds at face
frilly' subscribed,, cash proceeds from the
,amount when at par or above. issue will, be $150,000.
/
/
Bondholders may
elect their plan be¬
Proceeds—Cash proceeds will be dis¬
tween Jan. .1 and Dec. 31, 1944.
Registration Statement No/2-5285.
East
continue
sidered
;
account and credited
gage and collateral trust bonds series due
represented by such share.
1973/
' A'/A:' '■/',/
:♦
'•■•;/.
Address—134 East Main Street,- Decatur.
Registration Statement No. 2-5241. Form
S-l. (10-27-43).
A/' ■ '
/"'/A/./'/- 111.
'A
'
■
Amendment filed Dec. 31/ 1943, to defer
Business—An
operating
public
utility
amount
annual
will
regis¬
;■//■'• A ////
Allegheny Avenue,
" 'AA.A. •/
count
deducting the Brazilian Government
the
share
$1
plus
,
issues,
income
common
.
.
the
-
of
share.
per
a
Bros.
Kean, Taylor & Co., New York
City.
;'a A; a.,:/: ./
//a
Transfer of the Exchange mem¬
bership of Col. J. Goodwin Hall
to
Benjamin E. Bampton, who
will
continue
as
a
partner in.
Pflugfelder,
Bampton
&
Rust,
New York
City, will be con¬
sance
filed
$3,500,000
/■/'/•
Address—2223
/
for
Brummer
Transfer of the Exchange mem¬
bership of James S. Marsh to
George A. Barclay will be con¬
sidered on Jan. 20. Mr. Barclay
serving
A
Inc.,
Stores,
statement
1959.
in
the
Proceeds—The
of
bonds under Plan B (assum¬
Address—912
Syndicate Building,. 1440
all the Brazilian Gov- Broadway, Oakland, Cal.'
: '
"ernmenfc, State and Municipal dollar bonds
Business—Organized to drill and develop
to
which Plan. B is " available elect that
certain properties held under a community
plan) "Would; be $12,151,809/ The. total in¬
oil, gas and .niineral lease.
terest charge during the first year would
be $7,120,197 and the balance of $5,031,612
Undervvriting-^-None named.
:/e*WB
/ivould be available, for retirement of bonds.'
After
Salomon
15-year
sinking fund debentures, due Feb. 1,
3'4%
of
clared effective bv the company.
filed
//. ',/-/:J.■/';'A' ■/_,..: :'-'■/
;
Fair
tration
INC,
STORES,
F.
considered
York City.
voting trust agreement on /May 26,
by which they agreed to create a
voting trust with O. C. Logan, as voting
trustee.
Said voting trust terminated on
Nov. 1, 1942, and the holders and owners
of
the stock deposited In the trust are
FAIR
Bertram
to
be
by the Ex¬
change on Jan. 20. Mr. Brummer
will continue
as
a
partner
in
a
FOOD
Rose
will
1939,
purchase-of
for by
subscribed
tingent upon the exchange offer being de¬
to service the
the holders of
into
the procure¬
ment of a-commitment-for the
'
remaining; face amount will be Dec.
31, 1943.
paid at the rate of 3%% to compensate
for the reduction in principal and interest
BUTTES OILFIELDS,
rates, and the holders will receive cash-
ing
Cal.
of
per
will be subordinated
_
the
payments ranging from $75 to $175 per
'.$1,000, principal amount of bond.
./The amount to be: set aside annually
S.
Boulevard,:
4'4 (k
■
listed
Brand
South
holders through warrants at $30 per share,
.
bonds
common
Mortgage
.
of,the hew senior debentures has not been
filially determined,, but will not exceed
,
other
of
&
Bond
Exchange
following firm
changes:
/
Proposed transfer of the ex¬
change membership of Raymond
Underwriting—None named.
Offering—Date of proposed offering oi
delivery
of
voting
trust
certificates
is
January.
/: Purpose — Certain stockholders entered
new
standing debentures.
..
.
issue
stock not taken up by the warrant holders.
The
,
the
The New York Stock
.
of
amount
.
'secured
on;
Address—1618
Food
to
income debentures and shares of com¬
mon:
'//''//: A'
TELLER, 'INC. A™';-
exchange.
offers
company
Bonwit Teller,
/
of
First
Cal.
/
'
has announced the
OP
■
1,400 -shares
of
Glendale,
:
Exchange
Weekly Firm Changes
the
pur¬
stock
right to exchange such shares for the
new
defer
to
for
holders of the outstanding 67,373 shares of
the
1944,
commission
a
of
offer
an
Offering—The
/'
,
.
7,
dealers
6
cumulative prior preference stock/ The
Inc., has filed a registra¬
registration
statement
states
that
the
tion statement for 35,565 shares of 5'4 % '
company
proposes,
under certain condi¬
cumulative convertible preferred stock, $50
tions, to. issue to the holders of the 625,340
par value, and 108,913 shares of common. shares
of
common
stock
presently out¬
stock, par $1 per share.
The latter in¬
standing, comrnon xtock purchase, warrants
cludes 88,913 shares of common reserved
entitling the holders in the aggregate to
for issuance upon the conversion - of the
purchase, at a price to be announced later/
5l47/> -) cumulative, convertible • preferred/
208,446 - additional shares of common, and
Federal District
1, 1928, due April 1, 1933.
'■■//'/"'■A A
City of Sao Paulo 6% external secured
sinking fund gold bonds of 1919, due Nov.
'
selected
,
filed in San Francisco.
(City of Rio de Janeiro) 5-year 6%
external, secured gold bonds, dated April
'
j;"'v/^v-/;r
a
deposit of shares of preference stock
Registration Statement No. 2-5273.
Form
(12-20-43.)
Statement
originally
S-l.-
effective date.
;i, 1943. ■;
'v.---.
A"': Z/Z A/.v/A-,i%■-A
City of- Sao Paulo 30-year 8% external
sinking fund gold, bonds, dated
JMarch/'I/ 1922, due Majjith 1, ,1952/ "
!
Products
Corporation has;
registration statement for • $6,737,-;
300- ;4^,. • cumulative
income/ debentures
(subordinated) to be <; due Oct. 31, 19.73;
134,746 shares of common stock, $1 par
value, and certificates of deposit for 67,373 shares of 6% cumulative prior prefer¬
to
"
and other purposes.
Brazil
'
CORPORA-
.
and
Offering—Price to pubic, 100.Proceeds—For additional working capitaj
dated Oct,
j
/'
Certain-teed
filed;
stock
of
Co.
to a group of insurance
condition that the price
bonds is .satisfactory to
the
N. Y. Stock
.
Janeiro • (Federal dis¬
trict) 25-year 8% sinking1 fund gold bonds,
•
PRODUCTS
capital
on
for
| (This list is incomplete this week)
Logan; voting trustee, has filed i
statement
for
voting
trust
Glendale,
defer
v-,-/
CAL.
CO.
privately
the Commission.
registration
Form
to
^
MORTGAGE
&
of first mortgage and collateral trust
obtained
& Co., Baltimore; Wyeth &, Co.. Los An¬
geles; Bahkamerica' Co., San Franciscso,
$150,000 each, and Victor, Common, Dann
& Co., Buffalo, $1.00,000.
for
"
(10-23-43).
bond?
,
de
Rio
1944,
making
,
Co., Inc., Chicagb, $400,000; First Trust
Co. of Lincoln, Neb.,' $250,000; Cruttenden
& Co.; Chicago, , $200,000; Mackubin, Legg
C.
entire
Light Co,
for $15/220,-
Bidding Rule Waived—The SEC on Jan.
1944, approved an application of the
company for authority to sell a $65,000,000
.
,.
..
7,
a.\/
4',r,
are
S-l.
&
O.
its
of
Electric
6,
companies
certificates
Iowa
Moines
Power & Light Co.
issue
a
be
.
The company redeemed on Oct.
1,
$500,000 first and refunding mort¬
bonds, Series A,
and
will pay at
maturity on Dec. 1, 1943, $994,500 face
amount of underlying mortgage bonds.
Registration Statement No. 2-5237. Form
,
GLENDALE,
issue—to
gage
■
.
Clty; of
Jan.
Des
in
Underwriters are H. : M, Byllesby U Co.,
Inc., Chicago, and Ladenburg,1 Thalmann
&
Co.,
N.
Y.,
$825,000 each;
Eastman,
Dillon & Co., N. Y., $450,000; A. C. Allyn
..
BOND
Illinois
Corp.' by
Iowa
net price to the company 96,'or;a total of
$3,360,000,
,.
A\
FIRST
to
1943,
commissions
or
sale
000.
Form
(12-22-43.)
•
secured
■
:
-
,
trie
interest
entire
„
1, ° 1943 from 'proceeds
Continental Gas & E'.ec-
Dec.
on
recent
and
warrants.
.
sinking fund 7%-gold bonds of 1928, due
1958. ;• A- -r'
/'/ A.Ai:;
/'V'vS- '■
,
'
•
jBVsfV« gold bonds. Series A, dated Sept. 1,/
:■
/AAA//;>. /A.
Nov, 1,
TION.
the
•
1929,-dpe Sept, l,v 1959.
external
filed
effective date. /'•';
CERTAIN-TEED
of
ll;400 prior preferred
shares,
for the
purposes <oi
such con¬
desirous of extending the voting trust for
version. '
At/-1 ::AAr'v''z/\ '■■■/ A.'/
'■ ;A
ence stock.
•
""
an
additional
Address—800-812 Traction Avenue, Los
period of five yeafs from
Nov. 1, 1942, with O. C. Logan continuing
Address—120 South LaSalle Street, Chi¬
Angeles, Cal.
'////'' */■'•/
A'-//' z
to act as voting trustee.
;'.--:. //
The voting trus¬
Business-AEngaged in business of proc¬ cago; III. ■ r:;
tee is at present a director and the presi¬
Business—Business consists generally of
essing -and marketing
at
wholesale- of
coffee,
tea,
extracts,
prepared mustard manufacturing and selling asphalt roofing, dent of First Bond & Mortgage Co. oi
and spices.
' /,/■'■
shingles and related products, wallboard Glendale, .Cal. '
;///.
:
:A-/r-/A/; ;.//:•■.; 1 -X/, / 1/-;Registration Statement No. 2-5215. Font)
Underwriting—Pacific Company of Cali¬ and gypsum products, boxboard and vari¬
(9-20-43)..
Registration
.'./' F-l.
originally
fornia,. and Wyeth & Co., both of Los ous other products.
/ ;
Underwriting—Paul
H, / Davis ; &
Co., filed in San Francisco. /
Angeles,are
named / underwriters,' each.
Registration
sta tement
fully
effective
having agreed to purchase $150,000 of the Chicago, is named principal underwriter,
or dealer manager
debentures at 92 Va %. or a total amount of
;,■.//
and company will pay Dec. 21, 1943.
/-' ./,'■ /; //-/,,/:
/•//;,;
Feb.
•
Maranhao
1943, to defer
,';■■//./:•/■•; -■
;/
INC.
/
,
-
,
Amendment
-
Ben-Hui; / Products/J Inc., / has
filed a
registration/ statement- for,'$300,000/'5%;
convertible debentures, series" of 1943; due
sinking fund gold bonds'of 1928,
ol'
•
-
,
/dated March 1, 1928; .due March, 1, 1958. /
State; of Minas Geraes secured external
State
date.
BEN-HUR PRODUCTS,
■'
external
"
;//
Amendment: filed Dec. 27,
/.
State of Rio Grande
(12-10-43).
bonds.
own
Registra tion Statement No. 2-5272.
3-2.
(12-20-43.)
//; //A'
/ /
Registration Statement No. 2-5270. Form
.
C-l.
due Nov. 1, 1966."
;//A.' /'//
do Sul consolidated
1926,
■
'
.
solidated^
Offering—Date of proposed offering Dec.
:
,
redeemed
Company filed an amendment on Jan'. 10
to its registration statement in which it
gives the interest rate on its proposed
issue of debentures at 5'X
Offering price to the, public is given at
100, plus accrued interest / from Jan. 15,
1944, to date - of delivery.
Underwriting
'*
State of Rio Grande do Sul .25-year
conversion
upon
Series -B—--the
bonds
of
ranging • from $14.50 per share
to $18 per share. - 122,500 shares of com¬
mon stock,
$1 par, are reserved, for issu¬
....
,
right to purchase on of before
35 shares of common stock
1959,
prices
Registration Statement No. 2-5277.
Main
Section
.
holder
•
North
111. "•'
,
_
.
$15
already issued
not represent
;
present
Paulo
Sao
15-year 8% sinking ■
gold : bonds / external, loan of: 1921,
dated: Jan. 1, 1921, due Jan.: T/ 1936.,
,
State df Sao Paulo 25-year; 8%■ secured,
sinking fund. gold bonds external loan of
1925, due Jan. 1, 1950. i'A././ ,- •■/...."/"-.*■A/A/
?
State of Sao Paulo 7%
secured sinking
:
value
par
does
Offerinsr—Consolidated. Electric & Gas
the beneficial owner of all of the
outstanding common stock of Central Illi¬
nois.
Consolidated is, in turn, controlled
by Central Public Utility Corp., a. regis¬
tered holding company.
The stock regis¬
tered is being disposed of by Consolidated
in.
compliance
with
the
provisions
of
A'--'''.A
;v
1940.
funrf
has
Co/ is
below a list of lssnea
whose registration (statements were filed
twenty days or more ago, but whose
offering dates have :not been deter¬
mined or are unknown to us.
Coffee
the
Co.
Businessr-Operating public iitility.
Underwriting—To be applied by amend¬
UNDETERMINED
and
States
financing.
and
,
Gas
ment.
..
tions
stock,
stock is
The
Address—303
ford,
&
statement, for' 400,000
common
outstanding
new
general corporate purposes..
Brazilian State
Registration Statement No. 2-5287,
Form
(1-7-44.)
and..Municipal external. dollar: bonds, pur¬ S-l.
./A*
suant to. Decree-Law No. 6019 of Nov, 23,
1943/
/. >
.- /
>■' The offer is made to holders of various'
DATES OF OFFERING
external bonds issued
of
share..
per
ELECTRIC & GAS CO.
Electric
registration
a
shares
.
rnent; of service of certain
.
Illinois
Central
filed
191
as
be
additional working
annexed to
each debenture in
mortgage
bonds
as
1, 1944, $30,681,500 face amount,
Series A," 6.%, due April 1,1953, at 104(4"fr¬
aud interest, and On June 1, 1944, $39,'175,100 face amount Series C, 5"fr, due
Dec. 1,
Total
1956, at 105%
and accrued interest,
redemption cost exclusive of accrued
of the two issues is $73,196,022.
interest
according to a memorandum pre¬
pared by Ira Haupt & Co., Ill
Broadway, New York City, mem¬
bers of the
upon
request.
:
addition,
company
-.■■urMOyw"
—-
Heads Johnson Branch
R. H. Johnson & Co. announce
that
John
has or will redeem
or pay
off $17,321,900 face amount of its charge
•funded
debt
including
$15,827,400
face
amount of its first and refunding mortgage in the
In
New Y'ork Stock Ex¬
change and other principal ex¬
changes. Copies of this memo¬
randum may be had from the firm
R.
Klima
is now
in
of their Pittsburgh office
Union Trust Building.
THE COMMERCIAL & FINANCIAL CHRONICLE
192
Markets
Firm Trading
stocks
5
with
'
4
...
post-war prospects
All American Aviation,
45
Bendix Home
pARL MARKS & HO. INC.
FOREIGN
Pick Up,
in the Non-Stop Air
4
New York 4, N. Y.
50 Broad Street
Pfd.
Cum.
Common
Merrimack Mfg. Co.
Appliances, Inc.
<& Pfd.
Comtnon
M. S. WlEN & Go.
Corporation
Members N. Y. Security Dealers Ass'n
25 Broad St., N.Y.
Majestic Radio & Television Corp.
—AFFILIATE: CARL MARKS & CO. Inc. CHICAG0=r^
V2%
Inc.
Allen B. DuMont Laboratories, Inc.
Ilarvill
Pfd.
Derby Gas & Elec. Corp.
SECURITIES
SPECIALISTS
Yz %
United Airlines, Inc.
Laundry, Electronics, Die Casting and Television fields.
Home
CUBAN SECURITIES
all issues
Firestone Tire & Rubber
For Dealers
Teletype—N. Y. 1-971
lIAnover 2-0050
Thursday, January 13, 1944
Teletype
HAnover 2-8780
Y.
N.
1-1397
Trading markets and Information on request
World Currency
Stabilization Plans
DiscHSsed By J.
H. Riddle
Company of New York and Con¬
sultant to the National Bureau's
Committee
on
Research in Fi¬
it is pointed out that many
fundamental problems would have
to be solved before either of these
nance,
Keynes
problem in the immediate
postwar period, however, will be
to
restore stability
in a badly
disordered world.
Political and
internal economic instability will
The
exist hand-in-hand with numerous
trade restrictions and dislocations.
fund
pool would be set
managed by an inter¬
board of directors with
credit
or
as
a
group.
the
of
controls
International
type suggested in these plans will
appear to many as needlessly com¬
Mr. Riddle suggests that
arrangement
plicated.
less formalized
some
might gain initial all-around ap¬
proval more easily and perhaps
grow as experience is acquired in
handling international matters.
The
greatest war in history can¬
not help leaving in its wake a
condition approaching the chaotic,
alternative to the Keynes
plans, Mr. Riddle sug¬
gests
that
the
so-called
keycountry approach to stabilization
might meet the needs of the post¬
war
transition period more ade¬
quately. This approach involves
stabilizing some of the leading
as
eral stabilization.
nations
tary
work
to
for
nucleus
a
gen¬
Jt would allow
their
out
mone¬
by one with
remedying the
causes of disequilibrium
in
country.
An international
problems
emphasis
first
basic
each
bank
one
on
would
among
cooperation
assure
central banks and facilitate
international
of
settlement
bal¬
,
Mi'.
The
first
step
country
approach
stabilize
the
Because
in
the keyr
would be to
dollar-sterling rate.
Riddle
plan
are
in
deal¬
loans
rather
stabilization
than
long-term
short-term
credits, according to
the report.
up
litical
serves.
stabilization
confidence have
Such
period.
the
of
a symptom
disorders
else¬
it
restored to
been
impossible
be
may
The
countries
they have
that
would
Of
gen¬
which
rates
stabilization,
are
rates and in many cases
the
the
of
economies in the
to
need
credits
be
not
been able to vote one another un¬
will
It
various
if.the plan did
in
no
the transition
without securities sales experience)
sell
seasoned
to
stocks
sophisticated
and
erences
basis.
investors
or
Good leads furnished.
Commission
write for appointment.
tell
to
how
INVESTMENT SECURITIES
Street, N. Y. C.
Specialists In
MINING
either
from
deeply
the
be
more
Inquiries Invited
effec¬
ful
or
unsound
use.
HUNTER & CO.
Prosperity in the United States,
with the consequent stimulation
Members New York Security Dealers Assn.
of
42
and
WHitehail
imports, tourist expenditures,
foreign investments, would
greatly expedite- the stabilization
of
other
currencies.
Moreover,
states
stable
of
the
United
influence
whatever
in
CHARLOTTESVILLE,Va.—C. F,
N.
be adopted.
may
Co, 112 Second Street,;
E, announce that Jack Keenan,
formerly
has
H. M.
Frank Cannon To Staff
Byllesby Co.
Co.
firm
of
H.
announce
M.
that
Byllesby
&
H.
Richard
with
Bond has became associated
danger Co. Adds
Frank
BALTIMORE, MD.—The invest¬
years
&
a
Y.
Cannon,
for
A. J. Schlosser Joins
securities
teresting descriptive circular pre¬
pared by A. Webster Dougherty &
1421 Chestnut Street, Phila¬
delphia, Pa.
Copies of this cir¬
cular may be had from the firm
upon request.
■;
»
Co,
.
Streicher, member of the
York
been
admitted
Curb
has
partnership in
Co., Two Rector
Street, New York City.
'
J.
bonds of Northamp¬
County, Pa, offer an attrac¬
tive situation, according to an in¬
J. Streicher Co. Admits
L.
with their
ton
Mr. Bond was an officer
J.
become associated
The 4Y4%
them, as their representative, in firm of S. H. Junger Co, 40 Ex¬
Baltimore, with offices located in change Place, New York City.
the Court
Square Building.
In
& Co.
the
Corporation,
Interesting Situation
many
partner of J. K. Rice, Jr.
over-the-counter
with
connected
Owners Loan
organization.
Co, has become associated with
the
1-110
Cassell- &
of stabilization
method
NY
4-2968
C. F. Cassell & Co.
world,
the
BROADWAY, NEW YORK 4, N Y.
Jack Kennan Now With
the author, a strong and
dollar, free from exchange
S. H.
ment
ISSUES
DOMESTIC & CANADIAN
stabilization
contributions will
Richard Band Is With
Streicher
&
Exchange,
to
,
Quaker City Cold Storage
5s
New
York
announce
their
Tel.: HAnover 2-3832
INDEX
that
Alvin J. Schlosser has joined
City,
•'•i'.
buying department. Mr. Schlosser
was
&
formerly with Halsey, Stuart
Co, Inc., having joined the New
York office
BRADY & CO.
49 Wall
Security Dealers Ass'n
Street; New York 5
Blyth & Co, Inc., 14 Wall St,
qualified
required.
Phone
N. Y.
Pine
Tel; WHitehail 4-7970 Tele. NY 1-2218
restrictions, will be the main sta¬
Blylh & Co. Dept.
given instruction in all phases of
securities analysts. Actual
sales assistance will be given by our general
partners
in developing customer relations. Car
important. Ref¬
by
Quoted
plan, Mr. Riddle observes, but our
bilizing
auther com¬
Furthermore, it is impos¬
bonds
Men selected will be
investments
-—
supply most
of the credits in any
New
To
30
devolve upon
doubt
the United States to
warranted loans, the
of Gillett
or
Sold
United States
SALESMEN'S OPPORTUNITY
*
—
L. D. SHERMAN & CO.
Members
The stimulation of
foreign buying
in the United
States during the immediate post¬
war period might make it particu¬
larly
difficult
for the United
States to supply the deferred de¬
mands of the public and hold
ments.
the past
(With
Bought
that tive if safeguarded against waste¬
believe
to
"right" to credits, and
applications
for
loans
passed upon by the would-be bor¬
rower
or by groups of would-be
borrowers, who have sometimes
the
postwar period.
even
not break down
pegged
will turn
have little relation
Moreover,^
Yj 1-1779
SAN NAP PAK
painful.
very
White plan would use in initiating
to
Teletype n.
6s, 1952
Home
exchange existing
the
1920's
the
having
plans
and
the
in
liquidated.
American
banking
history suggests the danger of
to
rates
a
such
sible
stabilize, exchange
erally.
,
of
experience
debtor
to attain sufficient economic order
The rates
mechanism
,
Con¬
credits.
balance
of
DIgby 4-4832
INDIANA
Stabilization Needs A Prosperous
stability, Mr. Riddle ob¬
Until genuine peace and
world,
of
inflow
Ass'n
Dealers
LIMESTONE
trade, but when the credits end
the
readjustments
could prove
be granted without producing the
equilibrium necessary for estab¬
lishing and maintaining definitive
exchange rates.
Another danger noted is that a
system of quotas or shares in a
credit
pool
might
encourage
of
fundamentals
for
credits, but they might
economies that could
continue only on the basis of a
zation
lack
Phone
influences generated by
Huge credits might give
artificial stimulation to world
workable
be
where, the report states, and the
problem is to cure those disorders.
No country can maintain a stable
currency
unless
its internal
economy is in order.
Economic
stability in turn depends on po¬
but
is
an
debtor countries might be
a period by stabili¬
obscured for
Security
prices in check.
Instability
reflection
or
out
need
of many
Y.
war.
shows that substantial credits .may
exchanges, however, is
ing with her exchange problems,
perhaps five or six billion dollars,
the
the
constant
move¬
N.
Exchange PI., N. Y. 5, N. Y.
might require the
policing of all international trans¬
actions, according to the author.
Hence, those plans might extend
and perpetuate exchange controls
instead of removing them.
Another point brought out in
this study is that the Keynes plan
in particular might be highly in¬
flationary at a time when the
world will be combating infla¬
economic stability. The difficulties
build
40
and tionary
political
internal
capital
short-term
over
Members
currency
would
attacked.
over-all
aid
and suggests
that these credits, instead of ac¬
celerating necessary fiscal and
ecomonic reforms, might postpone
them. Some countries might have
to be carried for years without
problems
attaining
tions
contemplate control
Both plans
over-all
vail in the postwar
substantial financial
a
world's
endanger the entire structure.
plans are designed to facilitate
general currency stabilization be¬
fore the basic causes of instability
now,,
of
and
study points out that both
the Keynes and White plans rely
heavily upon credits to solve the
The
Inquiries invited
S. H. JUNGER CO.
Policing International Transac¬
ments, but this
(Credit Extension Problems
1
extending credits and loans.
whether
for
stabilization
blocked sterling bal¬
heavy adverse balance
of payments, England will need
ances
a
of that
*,r,
r;
■
involved in
might become
States
questions
under the conditions that will pre¬
the
ances.
Period
war
any
and White
such
4
tinued
Unsuited to Immediate Post¬
continental
especially ,for
the
European countries.
in
be
might
out that the general period that its ability to deal with
and techniques of the exchange problems in a more
and
White
plans are Orderly world would be seriously
Mr. Riddle states that impaired.
similar,
they are essentially credit rather
than clearing mechanism. A large
nations
Questions Feasibility of Plans
in Transition Period
it
Pointing
concepts
,
currencies
MUTILATED
frozen condition at the end
Needlessly Complicated
plans could be placed in effective up and
operation. While the,plans repre¬ national
sent efforts toward greater inter¬ broad powers and controls.
The
national cooperation in monetary general purpose is to have creditor
matters, they seem designed to nations (those with favorable bal¬
ances of trade) finance the debtor
operate in a stable world. *
an
1-576
york
new
OR
Teletype
Bell
telephone
Enterprise 6015
2-3600
f
period,
Stabilization,"^
written by J. H. Riddle, Economic
Advisor
to
the
Bankers Trust
As
philadelphia
telephone
REctor
COUPONS MISSING
5
YORK
NEW
STREET,
NASSAU
4 5
Association
Dealers
Security
WITft
'''
INCORPORATED-
York
for Interna¬
entitled "British and American Plans
Currency
y.
/'
'
,
Members; New
•.
'
Economic Research.
tional
•••
.
for international currency stabili¬
zation do not seem to be the most workable plans for meeting the
conditions that are likely to prevail in the immediate postwar period,
according to a publication just released by the National Bureau of
The Keynes and White plans
In the study
BIDS MADE ON BONDS
Kobbe, Gearhart & Company
•
He
has
portant
of that firm in
1931.
been identified with
corporate
work and many
derwritings.
im¬
reorganization
Halsey Stuart
un-
Bank and Insurance
i
.
Empire Sheet & Tin Plate
Page
Stocks
174
Broker-Dealer Personnel Items......
6s
190
Calendar of New Security Flotations.
190
Canadian Securities
169
Memorandum
Investnfent
176
upon
Trusts
Municipal News and Notes
each available
request.
188
Our
on
177
Reporter's
Reoort
Our Reporter on Governments
Public Utility Securities
Railroad
Real Estate Securities
167
Security Salesman's Corner
184
Tomorrow's
Says
Markets—Walter
Hill, Thompson & Co, Inc.
183
168
Markets and Situations
165
Securities
j
120
Tel. REctor 2-2020
Whyte
167
for Dealers
Broadway, New York 5
Tele. NY 1-2660
@FedFRASER