Full text of Commercial and Financial Chronicle : January 14, 1943, Vol. 157, No. 4142, Section 1

View original document

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

*U$. A WW

JAN 15
1943

U««A*Y

Final

Iteg.

Volume

New

Number 4142

157

TJ.

iS.

Pat

of John B. Knox &

Our Reporter

makers,

now wear¬

ing postwar planning labels, continue as in the past
their blue prints with their backs to the world
ities.
Their products are every whit as dangerous
ket today, via public offering, had
ever were—perhaps more so since the war appears
all the earmarks of an "out-thewindow"
operation
judging
by lent them additional psychological support.
The Canadian Government fi¬
nancing scheduled to reach mar¬

■,

bankers and dealers who

for

aggregate of $90,value,
the new

carrying

bonds,

•

j well.

investors

individual

for

but

majority.

better contribution to

day and time.

dicated

potential

that

issue

turned

away

for

buyers

have

would

opening of the books.
2y2s, priced at
100 and similarly the ten-year 3s

nature.

priced at 10012 naturally appealed
chiefly
to
institutional
buyers
such
as
banks, insurance com¬

desire to believe, is

ing

The

short-term

panies and trust funds.
The longer 3s, however, offered at a price of 9814 and
quite

offering
\ in

was

part of

those who have

there

and

the

similar opportunity in

had

not

time.

considerable

Replacing as they do $100,000,000 of 5s the new bonds mean a

interest for the
(Continued on page 188)

decided saving in

QUICK ACTION ON DESIGN

; AND

defies definition,

except that it is the effort of error

also

■

•

(Continued on page 191)

and

FINANCING and VALUATIONS

ENGINEERS and CONSTRUCTORS

the way
VICTORY

San Francisco

INVESTMENT

1-20

today

because

■

1850

Afember#

;

V■>,

York

Stock

Exchange

New

York

Curb

Exchange

Cotton

That probability was mentioned here weeks ago, along
a better-than-expected subscription total.

are

Real

INDEX
.*

Bank

Page

Insurance

and

Stocks......

,' .182

Calendar of New Security Flotations.

Trusts

Investment

*:v

........ . ..

190

.183

HUGH

Commodity
Chicago

Board

Orleans

New

Reporter. Oil

Our

And

other

Uptown After 3.,;................... 188

Reporter's Report............... .177

Personnel

180

Items

THE

181

Railroad Securities

CHASE

NATIONAL
Specialists in

BANK

OF THE CITY OF NEW YORK

Utah-Colorado

;

Montana-California

Broaden your customer

Securities

service with Chase

•

J. A. HOGLE & CO.
Established

Request

COMPANY

and

;

correspondent

1915

facilities

York Stock Exchange

Members New

15 EXCHANGE PLACE

634 SO. SPRING ST.

JERSEY CITY

Salt Lake

City

•

Denver

•

Los Angeles

LOS ANGELES

Member Federal

Deposit Insurance

and 7 other Western Cities

Syracuse

Corporation

Dallas

Markets, always

have

recent

prepared
memo

Underlying Mortgage

by expert staff in

Railroad Bonds

PUROLATOR

O ver-The - Counter

Trade

Cotton Exchange

181

Says

INCORPORATED

York

Inc.

Exchange,

.180

Governments..... 177

Our

SERIES

LONG

...........,.,

Salesman's Corner........ 183
0
*>(£■
'
Tomorrow's Markets—Walter Whyte
-

181

Municipal News and Notes

INDUSTRY

Securities.

Estate

Securities

Exchange

York

New

Actual Trading
,

want open market

you
.

Now that the

-A-:

YORKJTOCKS, INC.
Prospectus

New

NEW

PHILADELPHIA

Troy
Albany
Buffalo
Pittsburgh
Williamsport

major factors behind the rise recently, of course, has
that' we won't have a giant financing until

Comprising

SECURITIES

64 Wall Street, New

H. Hentz & Co.

have all the bonds you need,
understand¬

market recognizes the length of the breathing
going to have, it is reacting according to Hoyle.
It may seem odd to mention "scarcity value" in a market of
$100 billions of securities and shortly after a $13 billion deal has
been
completed, but there, in truth, is a prime factor in the
strength!
T
•*
"
'
'
Chances are we'll have some interim borrowing.
.
.
There
should be a financing in February, perhaps in a few weeks when
the $1,588,000,000 of certificates'of indebtedness due Feb. 1 come
up for rolling over.
There may be another comparatively small
bank deal and certainly the discount bills will be, up every week.
t;.;.-(Continued on page 189)
.

MAJOR

R. H. Johnson & Co.

BOSTON

Established

you

And take all action with the

with the first forecasts of

pave

Established 1927

NEW YORK

And if

realization

SERIES

day

Buy War Bonds
and Stamps

Sanderson & Porter
52 WILLIAM STREET

each

Invest

MANAGEMENT PROBLEMS

Chicago

proportion but it may be wise to hold
round¬

REPORTS

hi connection with

It is the most malignant
force alive in the world today, although the extent of its
evilness and its litany of hate is obscured in protestations
regarding the purity of its objectives, which are camou¬
flaged in fine phrases and described with more unction
than accuracy.
; '■
That depressions and misery seem to be concomitants
of capitalism justifies to self-appointed moral vigilantes, in
their esoteric wisdom, the destruction of the system.
That
such a destruction would produce a condition in which
depressions would be endemic instead of epidemic; in which
perished from the earth.

•'

after

matter 1

now

...

CONSTRUCTION

SURVEYS AND

you're buying

that

outlives cultures spell investors

bigotry which destroyed the glory that was Greece
the grandeur that was Rome, which martyred Hypatia
burned the libraries of ancient wisdom at Alexandria,

has not

for individuals
a decided rush

appeal

strong

intractable force that

The

and

had

circumstances,

current

•

and the big buying of
Not that there is any reason to an¬
along

...

any

while.

One of the

self-preservation; the residue of the human spirit
has been filtered through cowardice and fear.

and

yield

liberal

and

securities and can't wait until April.

deeply rooted in human

sort of reaction—technical at least—before

ing out positions.
wait for

for

with the

well

decline of

•

things

recently

signs that the advance is topping out, as a

January

some

destroy that which is not understood, been the
which contradicts preconceptions, or which refutes the April.

market

bond

are
.

The instinct to

strongly that many

very

fact.

off for

preliminary inquiry
latter, for the longer rPart X
3s, due in fifteen years, in¬

terms

Government

....

ticipate

the

from

the

the first week is over.

think of no

can

postwar planning.

There

reported

ers

cles, of which this is the tenth and final installment, which
call the reader's attention pointedly to certain fundamentals

As a matter of fact some deal¬

hope of doing its part in combating this
that the "Chronicle" is presenting a series of arti¬

menace

has been
Daily ad¬
all over the
country, premiums of more than % 0n the long 2V2S, of % on the
short 1 % s—everything looks wonderful.
It's almost too good
to be true, especially when a $109 billion budget message doesn't
even "ripple" the market.
January is historically a good month
but considering the size of the December borrowing and the obvious
outlook for financing totals, these rises are beginning to appear ex¬
aggerated.
Not that this observer wants to cast a pall on the
beautiful picture but whenever a market seems to be running away,
it's time to sit back, judge carefully and hesitate to move with the
Strength

surpassing the expectations of the most optimistic. .
vances,
increasing buying, orders coming in from

with

often overlooked in this

•'

now

respective
strong ap¬
institutions

maturities, carried
peal, not only for

On "Governments"

to combat such seductive proposals as
appearing almost daily, perhaps the only ef^
fective way, is to turn the flood light of fundamental
truths upon them.

coupons

their

with

keeping

is¬

distinct

three

to pore
of real¬
as they
to have

The best way

those

face

000,000

over

heard

comments

interested.

sues,
•'

Copy

Company

New Deal program

Editor's Note:

Involving

By H. B. LOOMIS and JOHN B. KNOX

REPORT

are

Price 60 Cents

York, N. Y., Thursday, January 14, 1943

THE ANATOMY OF CAPITALISM

REPORTER'S

among

HOW DID WE GET THIS WAY?

OUR

last-minute

2 Sections-Section

OVER 100 YEARS

ESTABLISHED

Edition

Reorganization Bonds

PRODUCTS, Inc.

Exchangee

Inquiries invited
N.

Cotton Exchange

Bldg.

NEW YORK

Kobbe,Gearhart&Co.

DETROIT

MEXICO,

P.,

PITTSBURGH
MEXICO

GENEVA, SWITZERLAND

REYNOLDS & CO.

INCORPORATED

Members

CHICAGO

HART SMITH & CO.

Security

REctor 2-3600

Philadelphia

Ass'n

New York

45 Nassau Street
Tel.

Dealers

Members New
120

Enterprise 6015

Broadway

Telephone:

Teletype N. Y. 1-576

Telephone:

York

Bell

New York, N. Y.

REctor 2-7400

Teletype

Members
New

Stock Exchange

1-635

York Security Dealers Assn.

WILLIAM
Bell

ST.,

HAnover 2-0980

GUARANTEED RAILROAD STOCKS-BONDS

Teletype NY 1-395
Telephone

New York

Montreal

Toronto

BO. Gr.

9-6400

65 Broadway
NEW YORK

Teletype
N.Y,

1-1063

■

THE, COMMERCIAL &

178

FINANCIAL; CHRONICLE

Thursday/january 14;., 1943

Trading Markets in:

We Maintain Active

Chas. Pfizer & Co.

for

Botany Worsted A

CANADIAN UTILITIES

Tennessee Products

'tis

-".I '■

York

New

Dealers

Exchange PL, N.Y.
BELL TELETYPE

Members N. Y. Stock Exchange and

Ass'n

HA 2-2772

BArclay

For

Members New York Stock Exchange

;

165

;

•

Broadway, New York
"

-f

/w-.v

/V/'

1-672:

v •

••

<\1

-n

New Orleans, Lap-Birmingham, Ala.,
Direct wires to our branch offices
•.

Consolidated

Electric & Gas
$6 Preferred

Class B and Class C Slock

CLASS C

New

Common

4*/2s due 1956-^and 5s due 1977

Ctfs.

Bought

Sold

—

Washington

Gas & Electric

Quoted

—

6s,
Inquiries

Honnell &
Stock

Exchange

New

York

120 BROADWAY, NEW

Tel.

Curb

YORK

Warren Brothers

N. Y.

St.,

(Strauss Bros.)

from bankruptcy on Dec.

emergence

1942.

Toronto, !

KANSAS CITY
(Baum, Bernheimer Co.)

Murdoch, Dearth & White

trial

activity

ST.

LOUIS, MO.

Office:

pes

the

re-<s>~

—

first; bond

:—

—.

Bldg.,

...

We Make Net Markets in

.•eorganized
4.956

FRISCO
4s-5s

and

iue

4s-41/2S

part

Cuban

years.

bonds
issues! handles

by an equal;
Government

■

and

understood

they

defray reorganization' ex¬
Each holder of a $1,000;

•

the

old

$1,400

Company was
new
Warren

brothers Company bonds, equally
iivided between the two issues,

hand.

had

current

liabilities, $3,128,000.

The. capital

stock

the

:■

com¬

has been divided into three

pany

aonds.
Warren

4s-5S-5V4S

SEABOARD
4s-5s-6s

into

Members

York

Security

Dealers

Assn.

Broadway, New York, N. Y.
System

Teletype,

1-2480

.new

these

new

privilege
Warren
:of

amount
bonds

restrictions.

privileges,

for

initial

amount

with

reduced

the

112

$1,35

dividends

and Class C stock
to

plus

lution

$262,000^

entitled

before

$27

per
or

can

share in

Class

entitled

Class

olan

that

each

time

C shall, be

$50 per' share in

ing

tion

liquidation of

Pany.

Serial

Index of Wholesale Prices

92.87

Dec/1942

^ Dec. 1941

92.63

•'Y,; -.'r-1--

89.27
'

—-

the

The

Warren

earned

company

(Continued

page

for

First Cleveland
"(Special

Tfie

Financial

CLEVELAND,

Corp.

Chronicle/

OHIO—Russell

with The First Cleveland Corpor¬
ation, National City Bank Build¬
ing.
Mr. Zimmer was recently
with M. A. Cayne & Co. and prior

■

in L. Zimmer has become
associated
the

192)

;

1959

sales

-1,

mer

charge of bonds in the
department of Borton &

Bought

—

Sold

—

with

was

Kline,

-•^Joseph C.

Quoted

Cabbie, Manager of
Abraham
Co.", 120 Broadway, New York

the Bond Department of

Hay, Fales & Co.

PINE

Y.
Teletype NY

ST..

WHitehail
1-609

4-4970

Members New' York Stock

Exchange

rCity, has left, for active duty with
:

' ,J.

[the United States Army.
i

Broadway, N. Y.

Bell Teletype NY 1-61

BOwling Greea 9-7027

Lehman

Bros,

these two connections,
he was with tLe Guaranty Trust
Company and J. P. Morgan & Co.
Admission of Mr. Kalb and Mr.
Voorhis to partnership in Adolph
Lewisohn was previously reported
in

the

"Financial

Dec. 24,

Chronicle"

//:/'-/;:-.//,;///■' 0;::':Vv;

1942,.

Mueller & Currier Is
Formed In Newark;
Adams Af J. S. Rippel

NEWARK, N. J.—Effective Jap/
15, the partnership of Adams &
Mueller is being dissolved. Joseph
R. Mueller in
partnership with
Cyrus R. Currier is on that date

forming Mueller & Currier, 24
Commerce Street, to,deal in inZ
vestment securities.
Mr. Currier
trading manager for Adams
•, VV.' '
:
' j
V. Adams, partner- in
the dissolved firm, will become ^
vice-president of J. S. Rippel &
Co., 18 Clinton Street, specialises
in New Jersey issues.
i

He was
recently tendered a dinner by the'
and

partners
firm.

Mueller.-■"."/'

Russell

Mr.

Currier

president of the
Bond Club of New Jersey. Messrs.

Adams, Mueller and Currier
associated

with

Mr.

were

Rippel sev¬

eral years ago,

;

Inc.

Gabble In U. S. Army

G.A.Saxton&Co.,Inc.

for

In the past;Mr. Zim¬

and jn the investment department
of Jackson & Curtis. :

New Class "B" and "C"

1931

manager

was

com;,;

Class C stock is outstanding
the amount of 236,862 shares.

se¬

Russell Zimmer With

Seaboard Air Line
5s,

V!,;

( 1923=100)

Old Common and Preferred

Seaboard Air Line
4s,

higher.

!,: C vv.

•

and

Logging,

in Canada

dissblu-!

WARREN BROS.

.con¬

due to fewer

was

days in the month.

Bofton, Inc.

Missouri Pacific

(1937=100).

■

For Banks, Brokers and Dealers Only

1944

this

concerns

was

4s,

(revised) in October to

November

economist

struction wages were lower, but;
in the case of many manufactur-.

paid and' to

case

Baltimore & Ohio

Mauufacturing, mining and

were

$2.50

share before any dividends!

$8,300,000 to $4.4
unique part of this

Class B stock in the amount- of

40,907
the

from

com¬

per

The

223

214

debt outstand¬

183,000.

from

analyst.

sociated with D." M. Minton & Co.
Before that time he was syndi¬

paper was coun¬

The Canadian Bank of Commerce

paid and

.!/. i, '

v,;/

trades

The wage payroll index of the
Canadian Bank of Commerce fell

k
V

Previously,T for
many years he was" with Clark,
Childs & Co., and Clark, Cnilds
& Keech in the same capacity,
;
Mr. Voorhis was formerly as¬

Prior

of dissor Nov, 1942

case

liquidation of the

pany.

pulp and

served

cate

per

the

steel

transportation and trade payrolls

is the case with the bonds.
Class A in the amount of 21
c

The

the

ing over 50%, There are now out-*
standing $2,282,000 oi 4V2S of 1956
and. $1,751,000 of 5s income of
1977, Thus, in six weeks the debt
af the new Company has been
•educed

HAnover 2-4660
Bell

buying

lave

New

the

sinking fund
vhich operated in December with
an

J.F.Reilly&Co.

their.
a

annual

have the

Cuban rGovernment
esults

bonds

converting

oonds

certain

INTL. GT. NOR.

holders

The

and

by a fall in other
products.. Increased activ-:
ity was indicated in the process¬
ing of non-ferrous metals.
,/vi

pay

if one preferred, he could take classes—Class A,
Class B
and
?1,400 of the Cuban Government Class C, all of which1 are unlisted,
>r,

iron

that John Kalb, man¬
of their investment research

curities

wood

have

At the close of the year,
large carry-over on its

Mr. Kalb was. formerly a part¬
of D. M. Minton & Co., where

terbalanced

orders

books.
The
company's current
position is very! good, current as¬
sets amounting to $6,215,987, and

•

rise in

large construction work,

considerable!. Government

other

the

•

was

owing in part tq re-tooling of certain .units.
The clothing group
declined only slightly, while a

/ *'

Sons,

ner

offset, the Bank stated,
a decline in the auto¬
motive and the heavy section of

The company is engaged in .the
business
of
building roads and

;ell

dven

/v// "'.W"

bond

aond

These

for

aonds and the balance of $402,900
;he- Company was authorized to!

penses.

ST. PAUL

called

bonds due

$4,150,000 of 5%

1977.

amount

ROCK ISLAND

Company

secured

ore
*''

mainly by

The

;4,150,000 of 4 V2 %

department, has also become
general partner of the firm. '

ce¬

rise

Lewisohn

department, has been admitted as
a
general partner.
Peter A. H.
Voorhis, manager of the institu¬
tional department which operates
in conjunction with the research

reals in the lead, and with a slight
increase in meat-packing.
This

earhmgs of the Company,
the Com-; which are applied to the Sinking
' ! Fund .establishes an almost per¬

Company .held in its treas¬ petual retirement operation,- and
$8,?02,y00 of .Cuba Govern-; it is not at all unlikely that the
of
this
company
,nent bonds maturing equally in debt
may - be
1.955 and 1977.
The debt of the completely retired -in about - two

Moines, Ja.

ager

from

with-'the output of flour and

ury

t-,

unchanged

of stock, but in fact is very, sim¬
ple, and very little different from, the
pany.

Ml#

announce

The

food group moved to a new high/

Brothers Company bonds and this
when supplemented, by 25%
of

Moines

Des

Commerce,'

Mid-December,
remaining at 186 (1937=
100)/and the percentage of fac¬
tory capacity utilized at 122". The

purchased, it releases a
glance the structure of the reor-;; Cuban Government 41A% bond to
ganized Company may seem • a -be sold and the proceeds are' used
little
complicated with .its two | to purchase
additional ; Warren
classes of bonds and three classes

was

the index

Teletype SL 477

Central 0282

Other

prepared

Canadian /Banx

che former structure of

Incorporated

MISSISSIPPI VALLEY TRUST BLDG.
Tel.:

holders

Company.

A. Lewisohn Partusrs
Adolph

Mid-November to

security

organized

Teletype

The level-of manufacturing, as Broadway, New York. City, Mem¬
measured by ,the index of indus¬ bers New York Stock Exchange,

(Strauss Bros. )

4-2968

The reorganization was based on a
$13,151,607.19 appraisal of
the Company's assets by Judge Brewster of the First District
Court,
Massachusetts.This valuation made it possible to include all classes

CHICAGO

Ass'n.

New York

Kalb, Voorhis Now

-Activity Unchanged

•

Dealers

Broadway

2-6286

Canadian Industrial

completed,

their

hunter & co.
Members N.. Y. Security
42

HAnover

Company i

1960

Members New York Curb* Exchange

A most remarkable, and successful
reorganization of the Warren
Brothers Company of Boston,; Mdss., has recently been"
upon

WHitehail

Broad

NEW YORK

PULIS, DOWLING 6- CO

Exchange

REctor 2-7815

Through Wire Service

,<■ (

Members
York

New

Invited

■"/•

St., New York, N. Y.
NY 1-1557

WARREN BROTHERS

CLASS B

Old

1st Inc. 6s,'53

w.:'«.

Steiner,Rouse&Co

Banks> Brokers and Dealers only

BROTHERS COCLASS

•;

25 Broad

/Teletype NY-

-if'/'.

NEW YORK

;

7-0100

;*V

•

!V'"

Other Principal Exchanges

BROADWAY

115

Telephone

NY 1-423

WARREN

HODSON& COMPANY,

CANADIAN BANKS

Goodbody & Co.

1920

Security

KING & KING
Members

X-

'■

■

CANADIAN RAILS

y4s, Serial

Established

Debardeiaben 4s, 1957

v/v.:;. -;

CANADIAN MINES

Missouri Pacific
5

(Alabama Mills

Markets

CANADIAN INDUSTRIALS

employees
'

of
"'

the
.

Mergenthaler Attractive j
'■

The

par

common

stock

Mergenthaler Linotype Company
particularly attractive pos¬
sibilities, not only as a so-callec
"war
stock," but as "a
"peac*

offers

stock"

well, according to 1
issued
by Baker
Hughes & Treat, 40 Wall Street
New York City.
Copies of this
interesting memorandum may fc*

memorandum

obtained from the firm

quest.

•

'•

' "

upon

re¬

Mii\

rdattartwwmMwdiffsjw m«t*t mm

i.F?C2^ryWJBs»

'Ai&v*

hW<,*,U^i44i^fr>*S»,i-4'A^(&V{^V6^ dmjhj,

THE COMMERCIAL & FINANCIAL CHRONICLE

;VolumeJ157i-Number 4142

179

COMMERClAL<>' Ato<dF"> '' h»■*■■

Connecticut Light & Power Co.

FINANCIAL CHRONICLE
//,
Reg., 0. 8. patent Office ,;, /,// ■*:■.
William B.- Dana Company '; t -;
'/•;_1: '■ ,; ,/< Publishers ;,;;'./"'. ;//
;,"/.' 25 Spruce Street, New York/,
;/!
//'yBEekm an 3-3341

; ;.v;

DEALER

!''■•; 'V''

BRIEFS

j. .'/./,■■.

■

Herbert D. Seibert, ;.
'//
,.v Editor and'.Publisher /; ///,/;

//'*•

William D.; Riggs, Business

Cincinnati, O.
find

that

V Published

twice' a Week [every Thurs¬
day (general news and'advertising issue)

"j;

with a: statistical issue, on Monday! ■

lieve

that

made

this

effort

another

offices:

Chicago—In

,/■' Copyright 1942 by William B.
:Company.'./;////''
!

Reentered

25,

$29.50

per

year;

Great

Britain,

Continental

;v
.

Europe (except Spain), Asia,Australia and> Africa, '• $31.00 per year.
NOTE—On ^ account of the fluctuations
In the rate of exchange, remittances for
foreign
subscriptions ; and .• advertise?*
menu must be made la New York funds.

NEW DIRECT WIRE

Philadelphia, Pa.

;

tele.

:-y\

fer

reasonable degree

ranging

of safety
and

BONDS

;

profit.
the

West

our

and

high
opinloh
Middle

little

to pay, a

attention to this field in view

the

growing- scarcity of Indusi
Utilities

Co.

Her

for

excellent, chances

trials,

TITLE CO. CERTIFICATES

ftewburger, Loeb&Co

and

-V;t

would

Rails.—Lillet
.'/-v:,'Y'y

bold

who

man

WHa«l»il
I Members flew York Stock Exchange

4-6330

SeSotypt 147 1-8033

N. Y. Finance Insiituie

Offers Spring Courses
Registration

Spring

the

for

term of the New York Institute of

Finance is now open and applica¬
tions for enrollment are being re-

/ ceived at the school at 20 Broad
Street*

STREET, NEW YORK
Telephone: WHitehall 4-6551

is behind the

REAL

Will

take

the; increased tax

his

purchase

ing. at
of Grace, 1943, " but. we in Phila¬
is a/far larger share to
delphia have the feelirig',. .based of corporate
earnings?
possibly on wishful thinking, that

The school, which is the
to New York Stock Ex-

successor

; ;

/ It - is;; important of

else

out

come

course

off his

ESTATE/SECURITIES

retarding, influence^ sional committees.-

•

great

Title

Co.

Ctfs.

Mtffe.

Co.

Ctfs.

L. J. GOLDWATER & CO
.

;.
inc.
Members Neva York Security Dealers

■

the

Asia.

Broadway, New York, N, Y.

HAnover

2-897#

Teletype

./■ >/'; We

K¥

1-120S

Offer

$100,000

Dominion of Canada
4

due

Nov.

(Internal

Price

1959/49

Issue)

;

& Interest

;

'(U.

Punds)

■

Current Return 4% to U. S. Investors

PrinclpM & Interest
Payable in Canada Only;

■

CHARLES KING & CO.
61 Broadway, N. Y.

WH. 4-8980

Teletype N. Y. 1-142
Specialising

Canadian

Bonds

Stocks

pur¬

chase of

an equity for profit im¬
plies/ the/discovery of merit of
growth before the crowd
dis¬
covers it)
;' //"' -/■ //:;//' • /
■/ '
Let us take a recent example:
A: few months ago shares of com¬

;

When a: Stock Goes Up

panies manufacturing oil drilling
change Institute, offers courses day of reconstruction coming, and / Tiiues / without / number
were
down
pretty
one equipment
] open to the public, especially de- the. Broker and Dealer
hears the comment that this stock much at the year's lows.
Then
Fraternity
signed for beginners in the busi¬ may well trim sails and
Or that is> "going up/'
And we gradually (here
developed
the
look-hope)
ness
world, mature students of
(Continued on page 182)
;
fully for that dawn.'—A. C. Wood, Often wonder when the statement
investment and finance and* po¬
Jr., A. €. Wood, Jr. & Co.y;'';/::;;
tential
candidates
for
military
a

Ctfa.

Complete Statistical Information

;

someone

They will buy an equity because
they feel; its dividend is safe and
secure
and
dependable.
But
apart from those who are buying
manner

Invited

_and all other Title Co.'s '
Bank Trust
Participations!

hands

(Many individuals of course are
interested primarily in income;

but we-believe that there is

Lawyers
Bond \&

buy later at a higher

this

Lawyere Mtgei Co.

higher

fore the other fellow.

recognizing worth and merit be)

income in

Specialists

Inquiries

v price the implication is clear that
to the' investor feels that he is

country's -securities markets realize that a sales tax can
tak^
may take on a semblance of - lifel
up par| of the slack, and the. rela¬
The numerous special offerings of
tion" between outright taxes and
blocks of stocks of; the great inl
forced savings/is also significant!
dustrres
have
distributed
tKes4 Biit
by and largd the tax phi-j
shares more widely than; ever be¬
lpsdphy is the thing to watch, for
fore and, automatically with this it is this
philosophy that will de4
distribution, there must • come an termine'/whether the additional
increased
interest,
not
only > iii impact is to fall oh individual in¬
these special situations, but in the comes or
corporate earnings. De4
market generally.
"
1 '
i yelopmehts on this Score must be
The first job, of. course, is to win carefully followed, with /particu¬
to' the
the war, and the inevitable • taj( lar; preference
hearings
burden which that entails will cert before the appropriate Congress

tainly exert

is -to

Are

advance;

: When
^Investors generally will- prefer
an
individual, buys an
to/see' a' large share of the war equity because he thinks it will
costsv met ' in this manner rather "go up," it seems to Us that he is
than by resorting unreasonably to merely saying to himself that he
loans which might,- as time went recognizes the worth of that com¬
on,
damage
the
Government's mon stock before it is generally
Credit and lead to disastrous in¬ recognized
by others.
For iri
flation. • However, the main ques¬ buying an equity, hoping later to
tion* that- concerns investors gen¬ sell at a profit, an investor or a
is
erally is.', one, of impact; /Just trader
proceeding
on
the
where. Will, the impact of the new assumption that someone else will

taxes- fall?

theV
.

and what

;

99 WALL

predict) load be carried primarily by in¬ at a later date and at
the beginning of "this Year dividuals of all income
And obviously if
groups, or price.

PARTICIPATIONS

N.T.

staggering/totals involved."

would attempt- to do much

BANK MORTGAGE

•

Teletype NY 1-5 ■.;

i..

around

Obsolete Securities Dept.

■

to ; 10 %;or

West would do well

WHITEHALL 4-6330

...

Street, New Vorlc

problem, the announcement that the Gov)
eminent would spend $100,000,000,000 dollars in • the next fiscal year
and' would : attempt; to V raise, half<y;
"-jy;,.;... ■,
of this " total through taxes and or the prediction is made "whether
forced saying still cameras some^ or not it is fully understood what
what, of a shock because of the happens when; a stock goes up

Properly di versifie d • they ofa

truck

our

We pay cash for the most

of :.the extent, of the tax

plus appreciation possibilities

•

box!

Slock Marks! Commetil

Good low priced high yield bonds
are still PREFERRED by our clien¬

dealers

SECURITIES DEPT.

PRUDENCE

send

for that old trtfck in
your strong¬

25 Broad

some

TO REAL ESTATE

•

JUNKIES
Let

yield and

Ball

WE ARE
;'; '•'

/surprising junk!

New York Real Estate Bonds offer

40 Walt St ,

AND COMPANY

Week Nearer Victory!

One

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,

■

believe that; there w<5uld
improved d e m a n d for try The Presidential message delivered to Congress on Monday
Municipal Bonds.-—/roin F. ^West- .afternoon indicated' the need of. the Government's raising in the
post' office at
We&lheimer & Vompany. fiscal year starting July 1, 1943, an additional $16,000,000,000 of
the Act Of, Mar. heimer,
:////,;;/;
revenue/: And although there had been some advance indications
gress
be

;/:/

seCond-class matter Feb-

1942, at the
/ New York* N.- Y., under
J B,
1879.
ruary

Dana

Lighting & Power Co.

will

■

^Prospectus 'Obtainable from the undersigned

/tax State ; and
directly < or 'Tn^

year

be¬

investors

many;;

y:/.;

;

Bonds, *
charge of Municipal
Fred H. Gray, Western Representative,
directly.
; Field
Building (Telephone State 0613)'.
*'
London—Edwards & Smith, 1 Drapers' If this threat Was'removed by an
:j Gardens, London, E.C.
■
;; ,/;/: early declaration of the new ConOther

Common; Stock

/;/ Common •'Stock;-;";

/'/J
Manageir'*

Thursday, January 14, 1943

:/■'

West Penn Power Co.

William Dana Seibert, President
«

//,.

■;Vlvl/'/./'"T'Z1*'Common btock

Houston

': •"

Auto Ordnance

Farnsworth Television
Federal Water & Gas

'»

This

serviced

!
•

term

the

institute

is... offering / specialized.;' cpufses,
.which, it is claimed, are not .availf
able in any other school in th6

These "include general
business,; 4 investment
analysis;

country*

brokerage procedure and military
and
civilian
defense. training
courses*
The class hours for most

of
>

the

courses

from

are

5:30

7:15 and the tuition fees vary from

$5 to $35.
; a; detailed

Full particulars and
:* description : of
any
/ course may be obtained by inquirf
ing at the Institute.
;

Oak Park Federal

Declares Dividend
'

Oak Park Federal Savings and
Loan Association,

•

104 N. Marion

St., Oak Park, 111., declared their
and one-half per cent (N/2%)
of Dec. 31, 1942, thus
making a 3% annual dividend
paid by this institution.
'

one

; dividend' as
.

Fort Pitt

Security Dealers

To Hold Annual Dinner
The New York

Association
dinner

will

Security Dealers
hold

its

annual

Thursday, Feb; 4 in the

Grand Ballroom of the Waldorf-

i/'; The

and

Bridge Works

J.F.Reilly&Co.
'/: */;

the company "has

York

i peacetime activities to

IIAnover 2-4660
Bell

a very

L^rge profits have accrued from
basis
The current situation ;in Puro4 took
place almost overnight, and its participation in the war pro¬
lator Products, Inc.; offers inter-)
it is indicated..that when peace gram; which: has consisted of such
esting possibilities according to a conies, the" Fort Pitt plants can activities as the fabrication and
recent memorandum of ^Reynolds
be Swung over to peacetime oper- erection of the new Consolidated
& Co;, 120 Broadway, New York
Aircraft Corporation Parts Plant
atfons within 24 hours. ."//T/:/'1/
City, members of the New York
at San Diego, California, also the
:
^he Government's primary con¬
Stock Exchange.
Copies of the
new
Glenn L. Martin Plant at
a war

Security Dealers Assn.

,71 Broadway, New York, N. Y.

modest /capital structure consisting
of $725,000 worth of first mortgage bonds (less $42,000 held in the
Treasury which they have recently - purchased in the open market:,
taking care of the 1943 sinking fund requirements and also pari
•

' Members

■

New

Fort Pitt Bridge Works has *>een- in: business since 1896,

Astoria, it is announced by Frank bf the 1944 sinking fund) and 70,000 shares of $10 par common stock.
Dunne, president of the ? Associa-I /! Fort Pitt is in a unique position^"
tion.
because i its
plants are ; equally completion of construction pro¬
suited to war and peacetime op¬ grams which had been deferred
/
erations:
The change Over frOm by war.

Purolator Interesting

Wickwire Spencer
York Ice Com. & Pfd.

System

Teletype,

1-2480

Additional Revenue
One

would

New York

our

contact

clients

un/

listed house in the larger cities
that is interested in gaining,
additional

revenue.

must have

The house

direct connection

with New York to allow

munication.

com¬

:/■;';

cern
Will be to create employ¬
memorandum: may be had from
Middle River near Baltimore, Md.
ment, and a large number of jobs
Reynolds & Co. upori request,;
and various steel mill extension
can be/ provided by construction
of/new roads, bridges, the elimi¬ jobs for Allegheny Ludlum Steel
Close Net Markets on
nation of grade crossings, and the;
(Continued on page 182) »■:/

Address

Dept. 8 A.M.

Albert Frank-Guenther Law, Inc.

Advertising Agency
131

Cedar

Street

New

York

Missouri Pacific
GenPs—Conv's—Serials

Insur. Outlook
The

•

current

Favorable]

market

letter

Co., 115 Broadway,
City, members of the

Goodbody &
New York

•

New

York

Stock

Exchange

and

1st 5s—1st

■»

insurance

both

stocks

quality

Also

contained

lists

stocks

and

letter

bonds

M. S. WIEN & CO.

Ward & €0.

which

the firm upon request,

Warrants
Sold

—

Quoted

teletyped collect

•

from

Sold — Quoted

Interesting Statistical Data on Request

are

Goodbody &. Co. considers offer
interesting possibilities. Copies of
»the market letter. may be had

—

Bought

regard to
performance.

the

Bought

Preferred

Common

6s—Adjmt's

Orders may be phoned or

with

and

Bonds

Common and 6*» of 1950

Great Northern

other leading national exchanges,
discusses the favorable position of

Eastern Corporation

Fort Pitt Bridge Works Co.

International

JWembers New

Members N. Y. Security Dealers Assn.
120

Broadway, N. Y.

•

EotabPobed 1928

Broad St.,

25
'

REctor 2-8700

Teletype NY 1-1288

York Security ' Dealers Association

New York
Bell System

Teletype N Y 1-1397

Hanover 2-8780

CRAIGMYLEPINNEY&CO.
Members
ONE
i

New

WALL

York

ST.,

Stock

NEW

Exchange
YORK

Telephone WHitehall 4-5290

.';s'

■»iV Vt 'A* -nr.
180-

V \\>'l

«*-•L: ]/> M.i.

THE COMMERCIAL ^ FINANCIAL CHRONICLE

...

—

•—

•

\\<

:■

Thursday, January; 14, 1943

V.!'

Chicago North Shore & Milw.
Ry. issues

General Motors

Chicago & West Towns Ry. 5/47
Stevens Hotel

New York

Building

City

5/56

w. s.

Bldg. Corp.)

(Broadway Motors

If you contemplate making additions to your personnel,
please
in; particulars to the Editor of the Financial Chronicle
for pub¬

Chicago Title & Trust Co.
Memorandum

Pettibone Mulliken Co. Com.

send

Request

lication in this column.

Florida Portland Cement Co. Units

SOUTH

Incorporated

SALLE STREET

Members

CHICAGO

41 Broad Street

York Security

New

J" // y'

Teletypes: CG 1234-5-6
Direct private wire

;

•

Chronicle)

Teletype NY 1-592

The Financial

AKRON,

New York

Telephone HAnover 2-2100

to New York

Dealers Association

with Merrill Lynch,
Pierce, Fen¬
OHIO - Emil
A. ner & Beane, 216 Superior
Ave.,
Schweitzer, previously with Mer¬ North East.
Mrk
Hughes was
rill, Lynch,
Pierce, Fenner & formerly with C. F. Childs & Co.
Beane, has joined the staff of and Otis & Co.
~ >
Paine, Webber, Jackson & Curtis,
.'(Special to The Financial'
Ohio, Building.
Chronicle) ' '

Seligman, Lubeikin & Co.

HICKEY & CD.
135

(Special

The

BOSTON,

MASS.—William

Dean has been added to the staff

PUBLIC

REAL ESTATE SECURITIES

UTILITY

INDUSTRIAL

William

II.

Cobum

Com¬

68 Devonshire Street.

pany,

HINGHAM, '• MASS. — Herbert
E. Bancroft has become associated
with Massachusetts Distributors,

Chronicle)'

Financial

Inc.,

Ill

dealer
(Special

Original First Mortgage of $6,500,000

;

Avenue
The

28-story

Two

CHICAGO

Philadelphia

Milwaukee

depth of about 205 feet.

Omaha

1930's made it difficult to pay 6%
interest

Quoted

the

bonds

ingly reorganization

Great Southern Life Ins. Co.

Southwestern Life Ins. Co. v '

Dallas Ry. & Ter.

Check

6% 1951

RAUSCHER, PIERCE & CO.
DALLAS,

Fixed

consum¬

which

Fixed, Interest

Mortgage,

•

First

$100,000 Fixed

$25,000

First

Insurance

Co.
-

American Insurance Co.

Income Interest

7. Any

divided

York

of other

1891

St., Newark, N. J.
3-3430

Phone—REctor

Bonds,

half

at par

the

such

the

best

Home

Owners, Loan

absorbed
vacant

lation

Bell

System

Co.
(a)

each year,

Teletype—SL 80

years

the

Corporation

the

available

10%.

held

12:30,
W.
the

meeting of the New York
of Security Analysts, to
on

the

Friday,

speaker

Place,

Jan.
will

15,
be

Mr.

Vice-President

New York

Central

at
of

Railroad.

Mr. Place will discuss the finan¬
cial

problems

the

New

York

Central.

meeting will be held at
Restaurant, 56 Broad
(4th floor), New York.

Schwartz
St.

The
will

Chairman
be

Pierre

of
R.

the

meeting
Bretey, of

Goodbody & Co.

Fanger is

Pierce,
Trust

with Merrill Lynch,

now

Fenner

Union

Beane,

heimer

Co.

with H.

and

thereto

prior

B, Cohle & Co. and

TRADING

M. Swan &

Putnam

Vice-President.

Hammell has

Co.
has
or¬

Mr.

M. Forman

& Co.

OHIO

—

Charles

connected with

now

Weber

Co., Spitzer
OHIO — Harry Building. Mr. McKinney was for¬
William Heinrich, previously with merly with Bliss Bowman & Co.
Borton & Borton, Inc., has joined
(Special to The Financial Chronicle)
the staff of Goodbody & Co., Na¬
tional City Bank Building.
; :
WILMINGTON, N. C.—Walter
A. Wells is with Allen C. Ewirtg
The Financial Chronicle)

CLEVELAND,

(Special-to The

Financial

CLEVELAND,
Hughes

has

Chronicle)

OHIO—Edward

•

Elect Quarles Pres,
:

BALTIMORE, MD.—At the an¬
meeting of the Baltimore
Security Traders Association, G.
nual

Hudson Quarles of Stein Bros. &

elected

was •

Mr. Wells

was

urer, vice-president and member
of the board of governors.

Baltimore Traders

Boyce

Building.
In
local manfor E. A. Pierce & Co.

affiliated ager

become

Murchison

Co.,

the past

president;

The Baltimore Security Traders
is affiliated with the

Association
National

Security Traders

Asso¬

ciation.

E. G. Longwell Now
With Boeltcher & Go.
DENVER,

COLO. — Boettcher
Company, 828 Seventeenth

and

them.

of
&

Brown,
Schlessman,
Co., with tvhich he had

★

years.

has

been

Mr.

Longwell

identified

with

one-

who
both

municipal and corporate trading,
is widely known in trading circles.

★

SHASKAN & CO.
Members New York Stock
40 EXCHANGE

Bell

PL.,N.Y.

Lang Named Bank Officer

Exchange

DIGBY 4-4950

Fred

Hudson Quarles

Teletype NY 1-953

president; John G. Chenoweth of
Baker, Watts & Co. ;\Vas elected
secretary, and Harry J. Niemeyer

(Special

The

Financial

Chronicle)

ILL.

CHICAGO,

James

Daniel

the

New

local

York
was

Co.,

141 West

members

Stock

Exchange.

formerly in charge

Otis

was

James R.

Buck

Co.

with

Fairman & Co. and
of

Buying Department of the

office

thereto

Boulevard,

Mr. Buck
of the

Rice

—

was

Prior

Fred

president

Co. and its

predecessor, Folds, Buck & Co.

Garrett

Robert

elected

Sons

and

Alex.

Edward

Freeman

Co.

elected governors

Peck &
for a
three year term, Louis P. Gundlach of Brooke, Stokes & Co. was
were

elected
term

Lockwood,

governor

and

for a two-year
Bamberger

Clinton

of Baumgartner

& Co., Inc. for a

term.
new
president

The

with

Stein

Lang

Co.,

annual

has

been

Bros;

Maplewood, N. J., at
meeting.

Mr. Lang has been President of
P.
Lang Co. since

January,

1930.

Prior

that

was

partner of Lewis and Co. of Hart¬
ford, Conn.
He is also a trustee
of Middlebury
bury, Vt.

College,

Middle-

Newburger, Loeb Branch
Newburger,
the

nounce

one-year

connected

the

Baldwin

Trust

was

treasurer.,

John
Brown

Sons

Lang,
President of
Co., 40 Wall Street,
New York City, dealers in munic¬
ipal bonds, was elected Vice-Pres¬
ident of The Maplewood Bank and
F.

Harry M. Sheely of Harry M.
Sheely & Co. was elected vice-

Daniel F. Rice Co.

long been identified
trading of Chicago real
estate securities, having also been
in charge of the Trading Depart¬
ment and Statistical Department
with the

of Geo.

Ford

half

Jackson

to The Financial Chronicle)

TOLEDO,

been connected for nine and

Rejoins James R. Buck Joins

Busbey

S.':-

McKinney is

REAL ESTATE

1942.

department,

Co., in now with F. L.
Co., Inc., 97 Exchange

ment

ment of their

trading

(Special

V
v

MARKETS IN

Buck has become associated with

the

Chronicle)

Mr. Longwell was
officer and assistant
manager of the municipal depart¬

CHICAGO,
ILL.—Caswell
&
Co., 120 South La Salle Street,
announce that Elmer W. Hammell,
formerly with the trading depart¬
cently with Fred E.

J.
to

become reassociated with their

added

MAINE—Rex W.
Dodge, previously with Frederick

Company
Building.
Mr.
Street.
Fanger -was recently with Westwas

to The Financial

;

SECURITIES

re¬

LA. —F.

been

PORTLAND,

with

bond¬

has

formerly

paid
plus an additional 1%
1937 through 1940 and

firm and

Jr,,

Street, announce that. Elmer G.
Longwell has become associated

Caswell Co. As V.-P.

use

Interest

ORLEANS,

Building.

Owen

Fixed

to The Financial Chronicle) ■«

Chronicle)

improve-:

interests

$687,600

ganization
The

The Financial

improvements were

E, W. Hammell

Society

? ^

Members St. Louis Stock Exchange

Meet

Inc.

els the bonds give a current yield

by of close

F i r s t Mortgage
bonds
retired
by operation of
Sinking Fund and $27,900 re¬
deemed at par, a total of $715,500

Selected Investments,
Baker, Walsh & Co.

judgment of the

additional .095%

(b)

Security Analysts

formerly

clauses.

Reorganization

for

was

CINCINNATI,, OHIO—John

space

Digest Of Record Since

509 0UVE ST-

most

Federal
and

application of the current
market price, in the low 50s, to
the outstanding $5,160,000 bonds,
the resulting figure of approxi¬
mately $2,580,000 seems low in
comparison to the assessed value

holders.

SAINT LDUtS

Agencies, the
Administration

Housing

the staff of Weil & Arnold, Canal

Carrick

;V :;:V
also made for

earnings for capital

ments

<$,

NEW

Deimel,

Mr.

ments and at current market lev¬

half to retire first

was

Trustee

Stix

with

(Special

of the property is
currently about 95%. Two Gov¬

■

Provision

for

o n

of prop¬

lot.

111.—John

become

(Special

Occupancy

owners

mortgage bonds

2-4383

ST. LOUIS

Car-

Fund

of $6,800,000, and the present day
sinking real value. Present rent rolls in¬
annual interest pay¬
fund for Second Mortgage, dicate 5%

erty;
of other
and

New

follows:

J. S. Rippel & Co.

MArket

;

remaining surplus to be

V2 to revert to

18 Clinton

Interest

Additional

Mortgage Bonds.
6. 1%
Additional Interest

of N. Y.

Established

Bonds.

Second "Mortgage

Jersey Insurance Co.

associated

has

by Trustee.

1941, the leases
running from Oct. 1st with an¬
: i
nual renewal privileges but con¬
Sec¬
taining the usual 30 day cancel¬
t h

First

.(Newark)
;

Mortgage.

ond Mortgage

Newark

\V;/ V;

a year.
Retirement of

Firemen's

held

ernment

Creation of

•

Interest Reserve Fund at the :rate

NEWARK

Interest. Reserve
is

The Financial Chronicle).

CHICAGO,

and

Chronicle)

The Marshall Company, 762
North
Water Street.
J.'
vV..
"... :
.

with

;

(Special to The Financial

new

order:
1.

ton

was

"" '• •'•

(e) A total of 14% interest dur-! Hill & Co.
mortgage .indenture,
made provision for the distribu¬ ing the period has been paid on
2nd mortgage bonds. *
(Special to
tion of earnings in the following

TEXAS

Ft. Worth-Houston-San Antonio

issued.,

The

Southwestern Securities

re¬

jurisdiction of the
(d) Capital
Improvements,
as
of Sept. 1, 1934,
amounting to about $400,000, in¬
time; the,;original mort¬
cluding installation of a steam
gage had been reduced $624,500,
plant and an electric power and
so that under
the plan only $5,light generating' plant have been
875,500 new first mortgage bonds made.' •• '■
x';
.•!'.'•* ;
were

Utility Preferred Stocks

reorganization

which

was

with

Platin

Mr.

and

Street.

Provided $100,000 cash for

(c)

Accord¬

was

since

Courts

State

New Mexico Gas Co. Com. & Pfd.

All Texas

Street;

(Special

under

mated

Republic Insurance
v

Sven

—

connected

& Co.

rick

ducing issue to $5,160,000.

take

and

of serial maturities.

care

Dr. Pepper

;

Salle

mer

which-, the .$6,500,000
land and .building

other properties, the<§>
conditions in the early retired

changing

—-

ILL.

now

Hingham
of

Bancroft, Inc., Bos¬
investment counsel!firm.

Langill & Co.,, 134 South La Salle

The appraisal

mortgage was made totaled $9,000,000 for the

DALLAS

Sold

Joseph F. Dixon & Co., 105 South
La

Like many

—

CHICAGO,
Platin

President

INCORPORATED

Bought

Chronicle)

MILWAUKEE, WIS.—Alan A.
" r i -.j
previously, with, .Thompson Ross Reed, formerly with C. W. Brew,
Securities Co.- and ,Dempsey-Det- has been added to the staff of
completed-in!

Avenue

Park

February, 1928, being erected on

•

Two Park

Building -.was
plot of ground having an. area
40,487 square feet and fronting,, 197 feet on Park Avenue, cov¬
ering the entire block front between 32nd and: 33rd Streets, with
-

ACALLYN^COMMNY
Boston

Building Now Reduced to $5,160,000

Present Assessed Valuation $6,800,000

;

BONDS

Detroit

Tbi Financial

MUNICIPAL

New York

St., Boston,

Mr. Bancroft was formerly
business
as
an
individual

RAILROAD

Devonshire

Mass.

branch

Loeb

opening

office

2091

Co.
a

an-

new

Broadway,

between

72nd

ter member of the association and

and

closing of their branch

has

office at the Hotel Ansonia.

Boyce for 17 years.
served

the

He is a char¬
past as treas¬

the

and

73rd

Streets,

THE COMMERCIAL & FINANCIAL CHRONICLE

Volume .157- Number 4142

the -market

the, light

of
i<1

•

181

what it has done before. Leav:

ing rie)vs. entirely, put of it
,

■'

•-'<

■

•,

■

»■

'*')

•

Defaulted Railroad Bonds

}'• In the first' few" months of
193,7 the Dow/ 'industrials

Whyte

Abitibi P. & P. 5s, '53, bonds & c/ds
Aldred Invest, ^rusl 4^s, 1967

high of about-200, thd
rails, about 65;' By midsumi
made

Says

Specializing

■

here is what happened.
"

Walter

Tomorrow's Markets

of .1937

met

both

,Mejpber»,<New:Trork Stock

had declined, the industrials
;

175, the rails 55. A
feW months later the indus-j
to about

Market'

•

New York

Telephone—DIgby 4-4933

attion; of past few
trials rallied to about 190 but
years, reviewed; and; lessons
the rails only man'aged to add
applied to current market.
about 5 points.' Then came a
Public definition of news and
sharp, break. The industrials
its; willingness to .back its
declined to, about 110, the
judgment a basic factor. 1
>
irAils,:!to under 30.
For the
.} j.
By WALTER WHYTE
!
77'* 7.77.^
'v:
i ^est; ;pL 4937v. the;* m a r k^t,1
^ *N6w :;;thiat':" the customary dragged and dragged.;
"'f "
•% ;
'♦
^
year-end hoopla and the open¬
ing New Year hurley bur ley
Nothing new occurred'until
with its usual jmposing array the
spring of 1938 when an¬

Gatineau Powei:

£kd/ian#e^

Broadway
RAILROAD

Bell Teletype—HY 1-310

REORGANIZATION

SECURITIES

Brown

Compaiiy 5s, 1959
334% "B" & 5$
Shawinigan Water & Pwr. 4s, 1961

PFLUGFELDER, BAMPTON & RUST

averages

HART SMITH i CO:
52 WILLIAM ST., N.
Bell

IIAnover 2-0980

Teletype NY 1-395

New York

Montreal

Toronto

Specializing in

;

SEABOARD AIR LINE

annual

forecasts

has

more at¬
tention to the market >as ex¬

rather

its

action

own

'than,"by what

some

people read into it.;
77777

Market

■■

Siderable interest recently
raih

at progressively rhigher prices, and;

Rest of the year was compar¬

The in¬
managed' to crawl

atively uneventful..

back to

across

•

Baltimore & Ohio and Lacka¬

whose fundamental posi¬
considered
poorer
than
Lehigh Valley.
;
Studies of the Lehigh Valley
situatiqn indicate earning power
of the mileage securing the 4V2S,

than

decide what to about 35.

can one

expect if at a later date these

previous levels

are broken
either direction.
\ :
^

......

-7

1940, was an¬
From 150, the
down

broke

industrials

;
Into this breaking or hold- midsummer to. 110 or so; the
in go f previous levels is rails went from 32 to about

25.

both averages
packed air the news known or
unknown. J/The only thing it came back, the first to about
does not express is human 140, the second to about 30.
emotions,

It is

one

of the real

Slowly

i.,

quently falls short of
•j

' 7:7';'7"*

success.,

its

the advance in the ihdus-

:/7. frials

♦

First of all the market and

;;

was

behavior is not ruled

not

even

The

bonds

—

(in reorganization)

Minneapolis

St.
Minneapolis'& St."
Minneapolis & St.
Minneapolis & St.
Iowa Central 5s

tracked lines of the system from

the4 Pennsylvania-New York State
Line to Buffalo. Freight density

strength for the

mortgage as the loss of anthracite
coal is basically one of the most
unfavorable aspects of the Lehigh

Valley

Possible

system.

Louis 6s
Louis' 5s'
Louis^4s
Louis 5s

1938.

;

Iowa Central 4s 1951

secured by di¬
the main double-;

"Des Moines

further

post-war erosion of this traffic is
one of tlie system's major uncer¬
tainties.
Finally, the 4V2S, 1950
are secured by a first lien on the

•'

75%

coupons.

of four semi¬
This postponed

ings are available therefore. The
sinking fund amounts to 75% of
net income but 40% of the fund
be expended on capital im¬
The balance is first

provements.

'
W.I.

1932
1934 ;
1949
'
1962

estimated

that

the

earn-,

ings for 1942 will necessitate pay¬
ment of half of the postponed in¬
terest

the

General

Consoli¬

dated bonds this year, While cash
in the treasury would be suffi-;
cient to meet the, full obligation,
if is believed that the distribution'
will be held to the minimum ac*'

& Fort Dodge 4s

1935

Frederic H. Hatch & Co.
Incorporated :
New York, N. Y.

■i:

•'

applied to Deduction of the bank
loan and then to prepayment of
the postponed interest.
*
J*

& St. Louis New Com.,

Minn.

•

sinking fund provides- for prepay¬
ment of the obligation when earn-,

may

Teletype! NY 1-20B0

Minn, & St. Louis New 2nd 4s, W.I.

ment of relative

NEW YORK;

STREET,

MINNEAPOLIS &

63 Wall Street

about 140 from

by
any scientific formulas. Even tically nothing, : By the end
economics
which incident¬ of the year both averages
ally I don't consider a science Were again going down. The
4—is garbled and twisted in industrials down to 110; the
the market by the fears and rails to about 25.
The next
hopes of the millions who year, 1942, opened with the
make up its action.
If any¬ nation at war. The industrials;
body could explain for .ex¬ showed no life to speak of;
ample why a major piece of but the rails shot up to just
hews has a stimulating effect under 30 from a previous
on the
price movement at one year's low of 25. Then both
time and
is
totally disre¬ averages started again to de¬
garded at another time,I cline. This time the. indus¬

WALK

ST. LOUIS RAILROAD

faced

a is heavy, and anthracite coal ton¬
midsummer
1941
low
of nage is less of a factor than for
other sections of the system. This
about 115. The rails did prac¬
latter is considered a further ele¬
to:

WHftehkit 3-3450

are

rect first lien oh

able to offer
of these roads

substantial concessions from
current coupon bond market,

with temporary postponement of
interest during any reorganization

proceedings.

In 1941 the market was if
why the application
of the Dow Theory, or any anything less active than in
other market theory, so fre¬ 1940: The1 only thing of note
reasons

would

bonds

interest does not. actually start to

\ at

perhaps .for extension of princi¬
even, if the lessee company
does have to go through reorgani¬
zation at some later date. In fact,
inasmuch as the Lehigh Valley
Rail Way is a leased line, and
considering the history of strong
leased lines in the present crop
of reorganizations, it is generally
taken for granted that the 4V2S.
1950

generally

request

fall due until May 1, 1944. but the

EROY A. STRAS6URGER & GO,

'l.'; pal,

* ..//

year,
other bad one.

sje

■

7';;'7 7.#7,

are

registered

upon

Quoted

72 WALL STREET

representing

Southern Pacific# etc.
We

Tuyl & Abbe

annual

Lehigh Valley

„

-f-.,

Lackawanna

NEW YORK

Illinois Central

/ '

^information

New York Centred

wanna,
tion
is

levels

f
7

'77,^;.77; dustrials

discussions,

must be based

Bought —L, Sold

»substantially: uncjerprfeed in relation; to; ,the v j unior bonds
where much of the speculative interest .has been concentrated, In
down to hew lows.
The in¬ fact, it is being noted that this<^
dustrials declined ; to under particular lien is considerably out"
W« maintain net trading markets in most
of line with strong senior lienAof
of the medium-priced Rail Bonds.
100 and the rails to under 20. other weak
particularly obligations; of
marginal roads, such
appear

150, the rails
how¬
past to about 35.
performances.' Not that .the
1950 as well above annual inter¬
In 1939 the industrials fluc¬
past is any yardstick for the
est requirements
on
the bonds
tuated between a. high of
future,' but only; by compar¬
even in depression years, and, jus¬
ing market action in the face about 150 arid' a low of about tify. a high degree pi confidence
of
offerings
and
support 120; the rails between 25 and in undisturbed treatment, except
ever^

RAILWAY COMPANY

many

bondsmen have been expressing the opinion; that vsome of the
liens, specifically the-Lehigh Valley ; Hair Way 1st 4V2S, 1950,

senior

ap¬ other drive sent both averages

peared, we" can give
pressed

The bonds of Lehigh yalley Railroad have been attracting "con*'

Bell Teletype NY 1-897

tually- required as the postponedcoupons do not bear interest.
It'
would be more profitable for the.
company to use what excess cash*
there may be for the retirement
of

the

interest
under tne stimulus of the war ef¬

mortgage
debt
consequent saving in

outstanding.

with

•<

If this is the

policy

ac-,.

followed by the manage-.
fort.
At the time of the com¬ ment, it is expected that the com¬
pany's Chandler Act readjustment pany should be in a position some
time later this year to follow the
a few years ago bank loans were
outstanding in the amount of $8,- lead of Baltimore & Ohio and in-,
375,000 and there was $1,889,000 vite tenders of borjds. This would,
due to the RFC. Both obligations presumably have a doubly salu-.
were
put on a serial basis with tary influence marketwise on the *
final payments due in 1943 under, 41/£s, 1950, which are underpriced
the readjustment plan. The entire on the basis of mortgage value
RFC debt has been retired and it alone and even without- any pros^-

major portion of the Tifft Termi¬
nal property in Buffalo, and thus is indicated that the bank loan
control a
large volume of the; had been reduced to $2,324,500Tby
road's important and ^profitable the end of last year. ;i;77;"v

interchange business in that area.
This interchange would, be an im¬

The terms of the

Chandler Act

tually

pect of company purchases:

■ ■

To Form Rand & Garfield

The New York Stock Exchange
readjustment call tor a further firm of Rarid &
Garfield, with of¬
consideration in deter¬ serial reduction in the bank loans
fices at 61 Broadway,. New York
think a closer definition of trials broke the much her¬ mining the status of the lien, and to
$1,503,500 prior to maturity in City will be formed as of Jan.. 21..
What makes good or bad mar¬ alded; danger point, 100, and. the value of the lease, in any re¬ Novembet, 1943, but actually it;is
Partners will be William Rand, i
organization. :
'' V-v
expected that the entire amount
Exchange member; and Richard *
would be obtained. But the rails sagged down to just ; Aside from
the.: ^independent will be paid .off this year.. There A. Garfield.
Mr., Rand has re-'
Bearishness was
to get back to past perform¬ under 25.
strength of the specific lien, it is is one other obligation stemming
cently: been active as an individ-*
ances.;
v; ;
complete. It was then this col¬ felt that' the market* Should give from the Chandler' Act readjust¬ ual floor broker and
prior thereto
*
*
umn
began recommending greater recognition - to the possi¬ ment and that is the $4,675,387-*of was a partner in Burr, Gannett &"
bility for strengthening * of the postponed : interest oit the General Co.
:
J In the. last week I have stocks again.
Consolidated: Mortgage ; bond s,
; *77 * '7' ' -77 ■/> entire .credit position of the road
been asked: What I: think of f,,,v

portant

kets

■

Brady*Ganrin Admit Baird

Well, you know what hap¬

•

pened.
trials

LAMBORN & CO.

and

WALL STREET

1942

saw the indus¬
advance to/about 120
;

rails

the

about

1943,

SEABOARD AIR LINE"
is

now

ready for distribution

Baird,

York

member

the*

Curb

Exchange, has
been admitted to partnership in.
Brady & Garvin, 115 Broadway,
New York City,
Curb member;
firm,
Mr. Baird has been active,

for the

had declined to about 28.

Earl

New

"THE CURRENT OUTLOOK

still at 120 but the rails

again.

NEW YORK CITY

Our study on

As the present year,
began the industrials

were

...

individual

Curb

floor

broker.

•

sjs

SUGAR

;

•

Exports—Imports—Futures

trend up

will
:

Dtgby 4-272?

rallied

;

that

see

each

!•/

-i '

-J-

' -s

top

on page

47.

Defaulted RR. Bond Indexl

Request

The defaulted railroad bond in¬

■

the market

rally

upon

Lh.roihchild&ecu

to the present you

(Continued
nil

Copies

Now if you will go back to
1937- and follow the market

specialists in rails

11 wall street
HAnover 2-9175

was

dex

n.y.c.

Tele. NY l-129i

of Pflugfelder, Bampton &Rust, 61. Broadway, New York.
City, shows the following; range
for: Jan." 1. "1939, to date: high—'

44; low-—1494; Jan.. 13. price-r-4234 s

188)
tail

■a

i,!

THE COMMERCIAL & FINANCIAL CHRONICLE

•182

Fort Pitt
Aetna Life Ins.

Bank and

Connecticut

and.

Tube

Company, .. Republic
Corporation,
Jones
and
Laughlim Steel Corporation,. etc.1
The company has also furnished

Inquiries invited in all

gantry

Unlisted Issues

foreign

Members

and

York

New

other

leading

WALL ST.

Stock

war

Members

BROADWAY,

exchanges

DIgby

Stock

eral

Exchange

use,

well

for

NEW YORK

CITY

Telephone; BArclay 7-3500
Bell

Teletype—NY

1-1248-49

(L. A. Gibbs, Manager Trading Department)

4-2525

1941,

No. 65; quarterly, $1.50 per share
Cumulative Preferred

*„•!"

the

$4.00 and $5.00
the

twice

This Week

end

Bank Stocks

—

1941.-

•

payable
J

the

banking field.

This

been

active

an*

will be

year

and

important

exception.

month

The

much

bank

suchi>-

characterized

sometimes

recriminations

meetings in prior

the

years.

■

bank earnings.

Had this been

en-

acted into law, many

DIVIDEND

declared

holders of record Feb. 1st,' % ;
;
Because of its -ability to: shift

today and that of ten

ago

(1933)

fell.

worth

years

calling

Depositors and stockholders

alike

gripped

were

Bank officers and

amounts to reserve account.
The

panic.

directors

were

have

a-promising

outlook for profits after the"

war.

banks

also

benefited

special provision in the

from

tax

new

The annual meet¬

receive

and

those

who

the

Twenty-

they

are

boat and must sink

same

them.

in the
swim

count

rates

respect
A'

were

move

also

certain

now

reduced

classifications.
foot

ease

Glyn Mills & Co.

Australia and New Zealand

bankTof

(ESTABUSHED

Stock Transfer By Fed.

Paid-Up

risen
the

Louis Schade, Acting Director

Mortimer.

reach

dollar,

this

level

vear

100

billion

estimatpd

ipayPrpafe ^to1 ins?gnificance°
l that the bankinS industry may
final accounting is renl
£* half of *?,
at least l",1,6"? that amount.

fore" L
cfered.

course
.

Meanwhile,

the

ments indicate

current

very

wTnf Z nl ^

Sided

state¬

satisfactory
n

bound to

was

And

come

into its Own.

oil

exploration means busi¬
and we presume'profitable

ness,

Kassell,

Deputy

Commissioner and Counsel of the

months

nn®

6,150.000
8,780,000

Sept.,
7 SIR

New

York

Taxation
"In

State

and

Department

30th

;

,„_>_.„_£150,939,354

response

letter of
advised that

your

ALFRED

Head Office;

vestor who

purchased at the 50%
level, .While realizing

that

the

taxation

war

outlook " and

prospects

are

fer- tax

and

laid

The

the

and largest bank

branches

its

transfer

efficient

banking

traders

and

the

same

many

firm believers in

the

former

service

travellers

investors,

Interested

thess

;

OFFICES:

Threadneedle
47

complete

LONDON

Street, -E.

Berkeley Square, W, 1

Agency

11,

the

Banks

with

arrangement#

throughout

;

reason

NATIONAL BANK

/ of EGYPT

require¬

Cairo

Office

■*

Commercial

No,

Cairo

exempt

be- needed

or one

the

£3,O00,0OtF
£3,000.000

the

from

directly

•.

'.,7

LONDON

United States
mentalities,

where

FULLY PAID CAPITAL

RESERVE FUND

and

of its instru¬

stock

However,
belonging- to the

States

or. one

where
United

King

AGENCY

William Street, E.

r/j,Branches in alt the

principal
EGYPT

of its instrumentali-

and

Towns
the

■.

SUDAN

ities is given to a broker for sale
•and registered in the name of the

broker,
and

the

certificate may be useful
-use.

of-

certificate

NATIONAL BANK

the certificate set forth the

of INDIA, LIMITED

facts.

Bankers

The

following form is acceptable:
j'7'We hereby certify that the sale
jo,f the within shares was made for
the likelihood of
,the account of the United States

that it is not likely inflation, or who have confidence
that the banks need take on as to both war, and post-war.
$5<> billion in additional securi- prospects for industry and. are
''ies' Some authorities place the prepared to purchase equities.;. If
so

most

countries.

jrecommended .by the Tax Comdiscourag¬ imisSioh. It is1
necessary only that
are

the

instrumentalities,

/the.

time, there

offers

not

transfer

London,

and

accompanied by a
certificate setting forth the facts.
Obviously, such a certificate
would

over

transferor

no statutory
such
a
tax

that

ment

the oldest

With

of Australia,

and

Head

i: There

Wales is

in Australasia.
all States

Zealand, FIJI, Papua and New Guinea,

others who do not find the
outlook,, too ominous, or who are

But

New

State may not tax the United

States

George Street, SYDNEY

is that the New York stock trans¬

Therefore- ah in¬

more;

DAVIDSON, K.B.E.,
Manager1 •'••
f,.

The Bank of New Sotith

Finance:

Finance Corporation.;

and

ing, and they decide to liquidate!

ably and taxes will bring in large
revenues

Assets

1941

50%

V-loans will rise consider¬

General

870

equities in this group appreciated

S,rf i
f?"
hack
hlini
by
hfgher margin than;figure at $25 to $3ft biUion8- "
before X Revenue Act ofIn a"y event, both the super».■

Liability of Prop.

Aggregate

the Department of Floor Pro¬
of the New York Stock

vestors that oil exploration, .both
during the war and after the war,

£8,780,000

£23,710,000

-Exchange,'sent to" members of the
(Continued from page. 179), 1 7 Exchange on Jan. 8 the, following
received
from
feeling on the part of a few in¬ communication

advanced

—

Fund

Reserve

Agency Tax Exempt

Stock Market Comment

but

1817)

Capital

Reserve

levels

Ltd.-

cedure

unprecedented

;T.

Bank,

new south wales

Re¬
together. The problems now are the situation even further.
that he was not too prompt in
different from the problems of a ports from Washington suggest
making up his mind; nevertheless
decade ago—but their solution is that Congress may be asked to
consciously
or
unconsciouslyjust as difficult and just as ur¬ eonsider two important changes
must have concluded that a great
gent. The strain on the banking in the banking laws as follows:
many other individuals would be
1. Exemption of "all war'Moan
system is of a different sort but
must be met with equal fortitude. deposits of the Government from thinking along the same lines at a
later
date, which would allow
The battle now, as far as the the y2 of 1% F. D. I. C. assess¬
him to- dispose of his commit¬
home front is concerned, is not ment.
' V '' r 7
;/ ■"
''•••
ment at a profit, if he so.desired.
against Deflation
but Inflation,
7 2. Exemption of
all war loan
The current bank statements are
j We presume,.'; as a matter: of
.deposits from the reserve require¬
same j type
of
beginning to reflect the concen¬ ments which range from 14% in fact, That this
conscious
or
unconscious
rea¬
trated spending occasioned by the
the case of country banks to 20%
soning applies to the market as a
war effort.
Deposits are growing for central reserve city banks,
whole.
On any given
day own¬
by leaps and bounds. Holdings of i
With war expenditures expected ers
Government Securities have
:
of equities may" determine
to

Deacon's

per

dividends

produce

Both realize that

the

law which

losses

ASSETS

Associated Banks;

Williams

for
manufacturers ' of Dec.' IT please be
permits them to charge business;
oil
drilling
equipment, - v So under. Article 12 of the Tax Law
bonds, not only Govern¬
ings at that time were stormy and
affirmative buying of equities \in no tax is imposed; on a transfer of
tempestuous. There was conflict ment but all types, against ordi¬
that group made a start.
And asJ stock by the" United States or by
and
hostility between manage¬ nary income. Other corporations,
of course, do not enjoy this privi-! each week went by additional 16V one - of its instrumentalities such
ment and stockholders,
vestors began to think along the as the Federal Deposit Insurance
;
Today, those scars are healed. lege.
same
line—with" the result that Corporation, Home Owners Loan
i
"There is a common bond between
During 1942, reserve require¬
Corporation and Reconstruction
ments were lowered and redis¬ there was broadened buying and
those who

"on the spot."

;

capital
Stock
of
John
Morrell.-; &
Co.,
will
be
paid
January
30,
1943,
to
stock¬
holders of record January 15, 1943, as
shown on the books of the Company.
Qttumwa, Iowa. Geo, A. Morrell, Treas.

■

company

NO.

f-.fiye Cqnts ($0.25)

end' of

been

jeopardized. The rate of 16% ul-,
timately established was, needless
mind.
During the
interregnum^0 say, a 'life-saver
for the
period from November, 1932 to banks. This they have been able
March, 1933, the banking struc- Jto absorb without difficulty and,
ture of the country tottered andi^n
&ddition> allocate substantial
tion

TOTAL

Secretary

•

A dividend of

almost•

or,

at' the

divi-

have

indeed

would

MORRELL & CO.

Zap-5

recently the

considered

—

dends

The contrast between the situa-

—

•

JOHN

com-'

was

the atmosphere of these meetings will be serious and quickly into peacetime produc¬
generally sympathetic. There will be little occasion, or excuse, for tion, Fort Pitt Bridge Works i-is i
or

64 New Bond Street, IV. I

,;/''

Parker

share.

per

1942; the

certain grace,

criticism

Charing Cross, S. W. /

Burlington Gardens, IV. I

£98,263,226

year-end dividend of 250 payable to stock--

statements of condition have already been released and the annual
stockholder meetings are under way.' In this year of somewhat un¬

February 15,1943, to holders ofJanuary 20,1943.

--January 7, 1943

November, 1942, a dividend
$1.00 per share was paid, and

■

record at tlostf of business

•v"-''Dale

By II. A. LEGGETT

always

Stock

per

is expected to show be¬

proximately 24,000 tons

has

8 Wesl Smithfield, E. G /

share ,V

per

Preference

No.,'44, quarterly, $1.25

7 ;.

company

pany's backlog of orders

January

OFFICES:

3 Btshopsgale, E. C. 2---1

,7.

Stock," 5% Serie*

No1.' 55, quarterly, $1.25
-5%Cumulative

earned,
after all charges and taxes,"$6.00per
share, and in
1942," even
though sales were greater than
1941, due to increased taxes, the'
tween

throughout Scotland

LONDON

>C«muUtlve 6% Preferred Stuck, Series A

•

OFFICE—Edinburgh

Branches

Board of Directors has1
•^declared this day,the following dividends: '

Pan-American/Airway^.

company

HEAD

CORPORATION

and
as

Incorporated by Royal Charter 17271

120

NEW YORK

Telephone

York

New

domestic

Royal Bank of Scotland

ELECTRIC

The

of airplane hangars for
locations, including sev¬

various

Laird, Bissell & Meeds

Exchange

for

cranes

number

lLCAU )Gi)c)tuG {1)

GAS

Steel

NOTICES

COLUMBIA

Corporation,

Stocks

Travelers Ins.

DIVIDEND

Bridge Works

(Continued from page 179)/ ].;
Youngstown J'Sheet

Insurance

General Life Ins.

Thursday, January 14, 1943

,of America
thereof and,

stamps

Uganda

Bishopsgate, •
;.'7;'7

28,

London, E, C.
Colony

and

Aden

Ceylon, Kenya

and

Zanzibar

Subscribed

Paid-Up

Capital... .£4,000,000 :
Capital -.. 7.£2,000,000 ;'•<

Reserve

are

affixeci;C;r'77^/^,

and

Branches In India, Burma,

an instrumentality
hence, no New York

tax

Government

Colony

Office;

,./,

-transfer'

stock

Head

the

Kenya

Fund.. .7,7.; £2,200,000

giVen;
Th« Bank. conduota every description si
time is substantially in the ma:
ever
7. banking and
exchange; buslnta#
77
Til
visory officials and the bankers jority, the pressure to' sell; will
f An exemption certificate may
Trusteeships and Executorahlp#
lest'tax burden
uDon!themselves 8re workin§ close'y push the market to lower levels. be used even though the broker
alao undertaken
corporations
a n d
individualsla"d harm°niously together in this Conversely, if there is'only.nomi-" ;in completing a sale delivers stock
Scarcely caused a rioDle in
the Scantier undertaking.
Results nal lack of confidence, and subT certificates which he has on hand
rnmmrati™ffonJ7® Ifrom the public bond drive in De- stantial assurance and faith, •and -thereafter, has those certifi¬ However, since the Supreme
comparative bank earnings of the
i^prnhpr
wprp
pxtrpmpiv
prptifv
has
overruled =Panhandle
past two years.
In fact, many cember were extremely gratify- stocks move
cates replaced by certificates be¬ Court
up to better levels
ing.
Oil Co. TV. Mississippi, 277 U. S.
banks actually
reported higher
Some of this, or all of this, may longing to the United States or
Ordinary commercial loans and
(see Alabama
v.
earnings in 1942 than for the past
King &
lone of its instrumentalities.' This 218
private
indebtedness
generally be more or less elementary.
several ye3rs.
But procedure may be desirable when Boozer, 314 U. S. 1) the reason
are being rapidly reduced.
When
perhaps it is fitting on occasion (there; is delay in having stock cer¬ for the exemption has disappeared
Thus, 1942 was a long deep val¬ the war is
over, there will not be
and with it the exemption."
to remind an investor that when tificates belonging to a federal inley of uncertainty and apprehen¬ a
top-heavy accumulation of real
strumentalitv transferred to the
sion between two peaks of rela¬
; i
"
"
*mmm
estate loans, inventories and in¬ he buys a stock becaus/s he.thinks,
CTed

group

any

•

fn hiftorv

tive calm.
best

prices

cember.
the

Bank stocks

January and
Closing prices were

best levels

30%

above

during
easy

saw

the

De¬
near

the year, some
lows
registered

spring

infer,

pessimism

their

was

slump.
It is
this time,, that

overdone

early part of the

the

year.

surtax

corporations

(as

originally proposed by the Treas.

lmy)

would.have cut deeply into

about.
as

obligations

Therefore,
much

worry

Most banks will be "clean
whistle"

less

these

bankers

are

respects.

showing

"going up," he is/saying

himself

that

someone

take

that

later date

else

will

purchase off his hands
at

higher price,

the pres¬
ent situation than they otherwise
might. There will simply be one

because

major problem, how to work off
dispose of our collective bur¬

ing 'worth and merit

den

earnings and growth prospects.''

concern

over

On the other hand, it is
recog¬
nized that the
imposition of a
31%

name

stallment

sands

debt,

rather

individual

than

thou¬

proves

that

to be tardier in recogniz¬

Thus, the banking industry en¬
a new
year in good condition

intriguing

„

■

is in a

position to make

Correction

imme¬

diate delivery of other certificates.
The

In the "Financial Chronicle" of

important thing is that if an
exemption certificate is used, the

Jan.

transfer must be for the account

df the federal instrumentality.

!; In connection with the forego¬
ing, I call your attention to .the
fact that no longer can an exemp¬
tion from the New York stock

reporting

the

associa¬

tion of Clifford Drake with Blair

Co., Inc., 44 Wall Street, New
City, it was indicated in the
deadline that Mr. Drake had be¬
come
manager of the municipal
York

department.
•

Mr.

•;

Drake

has

become

associ¬

transfer tax, be based on the fact ated .with the municipal bond de¬
that the stock is transferred to the partment of Blair
&
Co., Inc.,
will perform their allotted job en-, United States or to one of its in¬ which is under the
management

and without fear of the future
ergetically,
Like all the rest of us, the banks triotieally.
...

RALPH E. SAMUEL & CO.

items.

ters

.......

else"

"someone

of the broker and the broker

...

•

confidently

and

pa¬
-r

;//

strumentalities.
an

exemption

Formerly such
was
recognized.

,7
>

George

Gillies,

dent of the firm,

vice-presi¬

-Volume 157

THE COMMERCIAL & FINANCIAL

Number 4142

183

CHRONICLE

yiding, for. depreciation,,depletion,!
1

"» '

•

\ ,

•

obsolescence;

The Securities Salesman's Cornei

volves

For Investment Dealers
sales)

■organizations will present additional problems during 1943, for both

in¬

INCOME

BOND

SERIES

NAIIO

any

SERIES

Securities

LOW-PRICED

Where the;

PREFERRED
STOCK

BOND SERIES

offsetting charges are not made to
profit and loss or income1

the

SERIES

COMMON

LOW-PRICED

Statement it will be noted that the
schedules

insufficient transportation facilities, smaller1

reserve

policies,.a clear statement is;

INTERNATIONAL

STOCK SERIES

SERIES

required, in support of

call for

reserves

Gas rationing,

modification -of

called for by the rule.

Butler-Huff & Co. Predicts Increased Use of Direct Mail

During 1943. Issue Very Helpful Bulletin

amortization.'

of the type under discussion
such

and

Where establishment of

clear

descrip-!

tion of the circumstances.

FIRST MUTUAL TRUST

Where!

FUND

the

offsetting charges are made to!
foe salesman and the securities dealer. If you've been thinking about, the ''income statement, it will be
■direct mail campaigns to get more business, Butler Huff & Co., 210. noted that Rule 5-03 requires the
•West 7th St;, Los Angeles/have just/ issued one of the most in-[ amounts-, ' if
significant,
to
be
"formative, concise and helpful bulletins on this almost virgin) field; stated .Separately and clearly de-:

Prospectuses

upon

request

Jfor security exploitation, that this Oolumn has ever been privileged)
'to read.

■)<■'.

It's

short

scribed, unless properly includible)
under the' caption 'Cost'of Sales,':
do. it"J Concise,: which .caption the rule does not
which'should^ giyei require to be subdivided.

'■ '):'■•)''' ■*'
in the subject;of "How to

•;

course

packed with, sound'suggestions,
any alert dealer who wants to get at the job of selling by maili
the right "know how" of this angle of security merchandising in:
•one easy lesson.
* •
•. "-v,' [■
'.;y.y
Here are a few of the high lights:
/
'
v
The objectives of direct mail?
(a) The development of inquiry,
■which may be turned into ordefs; (b) reaching all-clients regu-:
•larly with ideas,; -information and offerings,.) (c) ■ keeping the firm
.name constantly before clients and prospects,
(d) getting clients)
and prospects into the office, (e) giving support to salesmen, (f)
counteracting adverse news and markets, (g) opening up new ter?;
complete

and

'^"particular attention is also di-•
reeled

the

fact

that

the

re¬

quirements of Regulation S-X
to

considered

are

minimum
'

specifically
'shall be

requires

there

added such further

information

terial

that

is necessary

make

the light of the

the required

•

...

statements,!

circumstances

•

'and

where to

).'J:..rfof-yfoi.yvyV;;
of regularity and consistency. Some interest*

get them and set them up.'

■j •

The importance

ring

results of experience are given which tell you how long you
keep at it before you can begin to make it pay you.
How

must

budget yourself so that you can know' where you are going and

contravene the

Code

Wartime

his

ing

name,

field:

•1

"It

seems

■

recognizing to an increasing degree the usefulness to which funds
of
this
kind can
be
put
and^>
s
—:—r
—r
that this is definitely reflected by printed together with the current
the

all of the
I know

sales

gain

discussion

indicate

cases

may

future

some

need

president

bear¬
makes the following comment with regard to the
A", '
;\/,v; .)• •']
;■ v-V'
!'
,' '■ ■■■
!.
a
very interesting thing to me that the
public is

forecast.

result¬

the year

Practices. y:> ,y.f:■■■'.Vs,;; ;:■;:/ ' ;■-)f ; representative companies.
(it) is
"Reserves
of
the
character that in our case
under

letter to .this, column, Walter L. Morgan,

recent

Wellington Fund and of the general distributor company

which

under

7.C... ''■)'

ma¬

they are made, not
7''< 7
; /
Planning objectives in direct mail." They give*you five ,good; misleading.' However, care should
be taken that no disclosure of in¬
"ones." •") V;7K;< v
:')v. > '
7" 7))%':''\'A-'):
Creation of a mailing list.
Some good suggestions as to how formation is made, .which would
ritory.

NEWS NOTES

requirements and that Rule 3-06

ing in larger sales than we have
had

for

months.

many

many,

Thus

evaluate

may

prognostications for
ahead in the light of the
of last year's forecast.

accuracy

The

reader

the

Keystone

has

Corporation

"A. further, interesting feature made attractive "capital" out of
? cash, as for example in- the-case
of reserves for separation allow¬ in regard to our fund is that I a financial column by Charles F.
The best types
should be offered by mail.
not. believe
there, has. everi Speare in which Keystone Cus¬
ances, )■
While the provision of do
Some issues lend themselves naturally to mail
presentation■> and
funds to meet necessary expendi¬ been a period in our entire his¬ todian Funds are described as "an
others do not. : (This is backed up by some pretty convincing il¬
tures is not a matter of account¬ tory from 1929 to date where we exception" to the general experi¬
lustrations.) What types of securities are best in the order of their
ing policy, it may be appropriate have shown a decrease in shares ence of common stock funds dur¬
importance, for direct mail exploitation.
'
) )
the

results

Why

expect..
■•■
•
of securities that

may

you

letter

covering

should

>■

•

•,.

accompany

prospectus

'• '•

<-7 v;

.-'V
V:;:T*: ;/..7
) / ; When to use1 "Blind Offerings," and why. An idea that'resulted
in the sale of many thousands of -shares of a-certain security.'. '"1.f
Use of the Special Bulletin.
>)')) :;'y'--yy:'r'yK;y-v-<y ■?; .yy* > : v
prepared report.

point out

that

tablishment of
of

itself

ensure

the

mere-es¬

reserve

the

will not

accumulation

outstanding from month to month.
other

may

ways

time to .time, in .our case new par¬

mental

funds

ticipants .coming into .the. fund
have always offset any .liquida¬
This
steady,
constant

yyy\yi}^y/,}yy'

:y::0yyyy

Accounting^Opinion

;

Securities

The

Commission

and

Exchange

Jan. 8 made pub¬

opinion in its Accounting
Series indicating the disclosure to

lic

made

•

with

financial

respect

lished

losses

and

statements

reserves

provide
other

estab¬

possible

for

contingencies

arising out of existing war condi¬
tions.
The opinion, prepared by
W.

William

Chief - Ac¬
"
.V
material ef¬

Werntz,

countant, follows:
/ ' "In
view of the
fects

which

have

war

"conditions

may

the results of operations

and the financial condition of cor¬

porations,
careful consideration
must be given to the need for es¬
tablishing
appropriate
reserves
intended to provide for final set¬
tlement of war production con¬
tracts, for post-war readjustments,
and for other possible losses or
ad j ustments resulting from pres¬
ent conditions. ; Where such re¬
serves are established, a. full; and
accurate' diselosure of the reserves

established

the

and

purposes

thereof is required by Regulation
S-X in financial statements filed

/'v

with the Commission.*r
t

1 "Since

reserves

-such

those

depending

the purpose under¬

lying their establishment, the

pro¬

visions

S-X

that

will be

applicable depdnd to

some

extent

upon

particular

Regulation
the

nature

*Cf.

reserves are
American

the

-Reserves

reserves.

nature of valuation

fying

required to be

Institute

Accountants,

Bulletin
No.';,. 13,
Special Reserves" Arising

Accounting v-Research
"Accounting
•Out

the

for
War,"

quali¬

dated

January,

1942.

reserve

earmarked
can

division thereof.
tain

effect

tions.

growth, I believe, is unique and
certainly a rare situation among
mutual, funds,"
I. .,) )
.

;•

cases

the

surplus

Finally, in

reserve

may

the estimated amount of

(Special

cer¬

reflect

inspect companies in the

se¬

Opens

sub¬

„

*!'

•'

' .'I

with supple¬
a
pocket-size

"Last Call For Tax Saving," il¬

lustrated

the sand of 1942
minated

the

hour glass with
running out, cul¬
bulletins

series

which "Keynotes" had devoted to
tax

■

material

discussions

the

closing

(Lack of space, in last week's weeks of 1942.- In short, punchy
prevented us • from com¬ sentences-the lessons of the pre¬
pletely "catching up on the news." vious bulletins were summarized.
The following items have been
"The Major Problem For 1943"
gleaned
from
the ; accumulated is the topic of a later "Keynotes."
material on the editor's desk.)
Expenses up, income down—that
On
entering
the
year
1943, is the problem. The solution of¬
MIT's
"Brevits" takes an opti¬ fered is
(1) to determine the mar¬
mistic look ahead.
And as inci¬ ket value of
present investments,
dental comment/ the performance
(2) consider the total as new cash,
of Boston Fund is compared with
(3) select the classes of securities
that of the 26 most popular stocks into which
you
would put this
selected by the 801 leading con¬ new
cash
under present
condi¬
testants in Barron's Investing For
tions; and (4) check the current
A Widow Contest.
The compari¬ rates of return on these classes of
issue

three-year period securities against what you are
1939 and includes getting On the present investment.
curities of which Hill, Thompson dividends
paid> The net change Says "Keynotes":
"This simple
& Co. are interested for dealer for Boston Fund was plus 9.4%
experiment may reveal a sound
distribution.
He will also call on as
against minus 1.3%- for the 26 opportunity to' increase invest¬
dealers throughout the
ment income—to reduce or offset
territory. most popular stocks.
Another excellent example of the
shrinkage that will otherwise
the
kind of
cooperation which be suffered in 1943."
J.? E. A. McMeen
will

earned

best be shown

Co.,! Inc., 120 Broadwayv
City, will leave shortly

York ..State,) Pennsylvania,
Ohio
and the Middle West where he

■

and

for his periodic trip through New

properly be shown under
32
of Rule 5-02—Re¬
serves, • not elsewhere shown.
In
still other cases the contingency
or
condition
against which the
reserve is provided may be so in¬
definite and
problematical that
Caption

than

and

New York

should

the

Samuel

son

of Regulation S-X. " Others
relating to
specific
assets

not

The Financial

Chronicle) '

)FT. WAYNE, IND.—J. E. Allen
McMeen has opened offices in the

actual

covers

son

from

the

Aug. 24,

investment

companies

taken

the

finance

giving

are

Government

our

•:

measures
war

the

Dividends"

"About

discussion

also

Calvin

the

Bullock's

After
letter, "Dollars For Victory," sent "Bulletin."
recalling the
Building to engage
out by Massachusetts Distributors. dismay
with
which
investors
securities business.
This letter wholeheartedly pro¬ viewed future dividends
prospects
Mr.) McMeen was formerly secre¬
motes the
purchase of Govern¬
serves should be clearly descrip¬
(Continued on page 188)
tary of G. Ward Beers & Co. and
ment bonds by investors and en¬
tive of the purpose for which the in the
past was with Lincoln Secloses a Cash Subscription form
reserve has
been established/' It
curities Company.
should further be noted that Rule
v
m
) for the U. S. Treasury 2^s of
1963-68. ;4,
.
)
v
12-13, which asks for supporting
', -

liability and should be shown as
such.
In any case the caption of
each reserve or major class of re¬

Old First Bank
in

general

data

eluded

all

quires

reserves

in-

not

;

specific schedules,* re-r
the
reserves
) be

Interesting

data

types

war

asset

and

6s "of 4950

have

been

by M. S. Wien & Co.,
25 Broad Street, New York City.
Copies may be had from the firm
upon request. '
" '

prepared

"Classification

and

description

made in establish¬

■

The situation

of the

1941.

Custodian Funds

Nov.

BONDS

Business Men's Investment Bond Fund
Medium Priced Bond Fund

<30, 1942 were $2,103,411,

Low Priced Bond Fund

Speculative Bond Fund

....

common

May

were

1942,
$924,918

31,

Salle

may-

Investment

Fore-

the

b2
BJ

Income Preferred Stock Fund

Appreciation Preferred Stock Fund

.....

end

1941,

re*

COMMON STOCKS

....,/ SI
S2

Quality Common Stock Fund

Income Common Stock Fund

.......

S.i

Appreciation Common Stock Fund
Low Priced Common Stock Fund

may

......

S-fc

be obtained from your dealer or from

The Keystone Corp. of Boston

unique in that
Doyle, the Investment Forecast for 1942,
matte

PREFERRED STOCKS

Prospectus

Street,

Net assets of the Series S2 Fund

206,324 shares outstanding. This
represents an advance of 12.2%
stock in net asset value per share since

had from
O'Connor & Co. upon request.

(c)"requires disclosure 'detail

policy followed as to pro-

Funds

approximately $42,000,000
compared with $28,379,000 at the

'
Chi¬ $9.08.
ing such reserves should likewise
"Keynotes"
be given careful attention. -In this cago,-111.
Copies of the memo¬
connection it should be noted that randum describing the situation in least for 1943
3-19

Combined

the

when net assets
and there were
according to a memorandum is¬ 101,845 shares outstanding, giving
sued by Doyle, O'Connor & Co., a net asset value per share of
135 ^ South

Rule

all

$13,-

Fed. Water-Gas Attractive

and conditions for which reserves. of Federal Water and Gas Corpor¬
have been established. :,; v>
^7 ation offers attractive possibilities

of the charges

1942;

value

stone

Keystone

about

equal to $10.19 per share on the

com-,

contingencies

during

600,000

mbn

fail to disclose clearly the va¬

rious

now

bine them with,other .reserves as
to

increased

Funds

Fort Pitt Bridge Works Co. com-

of the char¬

group- reserves

acter under discussion or to

statistical

>,■■.■;* '■

Total assets of the ten

Situation Interesting

that

V'..*

)Ftr Pitt Bridge Works

grouped and /listed according to
major classes under properly - de¬
scriptive titles.
.- While
the in-=
structions permit the grouping of;
special
contingency!;reserves; it
would be improper, in my opinion;
so

mentioned will diffcr in character,

the

they apply in conformity to Rule
3-11

dent

deducted from the assets to which

On Disclosure Of Reserves

Magid On Business Trip

E. Magid, Vice-Presi¬
Manager of: the whole¬
sale department'of Hill, Thomp¬

SEC

together

folder.

way".

from printed,

and

availability .of such liquid
as may be required.
Where
such- future
cash
requirements
•.
' The proper use of a "weekly news Bulletin" and a monthly
exist, independent" consideration
bulletin.
Costs are quoted.
Their value, and their purpose'is de¬
should be given, as a matter of
fined. 1
v.'■ ' /V. ■/)
financial policy, to- the desirabil¬
Costs are analyzed for different types of mailings. Suggestions
ity yof taking
additional steps
and tested short cuts. in mailing j printing and preparing are also
toward providing such funds, as
covered. All in all, we say again, if you haven't received a copy
by; - funding' the reserve through
;and you ar,£ interested in "more business",; we endorse, the "idea accumulation and
possibly segre¬
that you communicate with Butler Huff and tell them to send you
gation- of cash or liquid assets
a copy.
•
•
) -v ' \,"V *•''''-77 7
■'
7). '•?" equivalent to the' reserves estab¬
;
7 ) We are in a business that depends upon the same psychological lished;'!'
factors for its success, as any other type of business. Merchandising
is the answer—the business is there if we go after it in the fright
.

liquidations

ing the period of declining secur¬
prices.
The column is re¬

al¬ ity

there

while

words,

50 congress

street, boston

THE COMMERCIAL & FINANCIAL CHRONICLE

184

•'

•

: •*

States

quite

hot

are

low

• ■'

torists in newly-rationed

obtain

now

may

;' *

expected to dip
in the 17 east¬

States, however, since

ern

Municipal News & Notes

•

one

30, 1942, the commission reported
cash on hand of $62,821 to

meet all

States

gal¬

three—than

gasoline tax' States rationed originally indi¬
cates the amount of non-essential
revenues for September, October
and November in the 17 eastern driving that can be eliminated by
States
where gas rationing was motorists of the remaining States,
first introduced indicate that na¬ which
went
under
rationing
tion-wide
collections
from
this Dec. 1,
State

by the mileage rationing program
30

the

40%

Gas

months

States

for

were

the

months

Administrators

Tax

declines

These

tioning

and

the

for

amount of non-essential driving

eliminated

States—in

these

normally

month

the

under

the

States

again,

mileage

rationing program brought about
elimination of a high percentage
of non-essential
driving in the

clines

that

difficulties

the

ular

become

the

fort

Canada

The

that

Canadian

over

the

and

original

hicular

traffic

factor.

re¬

case

bow

River.

based,

The

Commission

the

Niagara

built

and

newly-rationed

letter

and

194-1:

the

Rain¬

commercial

success.;

that

bond¬

all

the

administration.

Dec.

•

Harris

Stranahan,

Inc."

Company,

/ &

ex¬

1946 and 1947,

headed

group

Lehman

Corporation and
Smith, Barney & Co., all of New
York, made public offering on
Jan. 13/ of $37,013,000 New York
City Housing Authority refunding
bonds, 1943, First and Second Is¬
sues,
Series A,
maturing from
March
15, 1944 to 1981, from a

economical and conservative

•

the First Boston

Commission,

Bridge

been

Brothers, -Blyth
&
Co.,
Inc.,
Phelps, Fenn & Co., R. W. Pressprich 6c Co., Goldman, Sachs-&
Co., Harriman Ripley & Co., Inc.,

during such time, will continue,

was,

dated

♦

bondholders

our
ve¬

essential

time

that

recommend

that

Falls

Rainbow Bridge which spans

Niagara
Gorge
opened in November,

is'

approxi¬

have

Lehman Syndicate Offers
N. Y. City Housing Bonds

holders patiently await the ces¬
sation
of
hostilities, confident

operates

the

de¬

which

the years

an¬

may

Bridge should be an out¬

standing

was

Islands

resumption

economy

Bridge Authority, operating three
structures crossing the St. Law¬
rence

war

with

that

$4,738,000,
84%

changed. The remaining bonds
eligible for exchange- mature in

United

the

believe

normal

border

Thousand

States.

is¬

impact of wartime traffic

strictions

inclusive,

ef¬

war

National

mately

from

the

inherent

since

delinquent

Commission
vehic-

resulting

traffic

causes

revenue

Ni¬

due solely to limited

are

paid, mark¬

Chase

Super¬
meeting on Jan. 11.
The
refunding agents report
that of $5,660,000 bonds
origin¬
ally eligible for exchange and ma¬
turing in the years 1943-1947 both
visors at

opinion
the

Falls Bridge

agara

;

considered

our

ticipate

sue

the

collection

of which follows:

"It

contract

county and Lehman
the

vote of the Board of

mous

issiife,' the

bond

refunding

the

and

Bank,
New
York,
refunding
agents, was extended to and in¬
cluding April 15, 1943, by unani¬

who

bankers

the

the end of the

crossings.

for

are

year

the

text

below normal.

ing the second bridge

collections

originally-rationed

reve¬

of 1970 has not been

Oc¬

below collections for

Further

States

these

the

due
Jan.
1, 1943, on
Niagara Falls Bridge
Commission 414% revenue bonds

collection experiences

the

States.

State

$4,000,000

17, 15

were

States

fiscal

1942

further

and the

Accompanying the letter is

underwrote

bond

Bros,

detail the im¬
on bridge opera¬

war

statement

gallons,

Interest

.1943 fiscal year will stabilize at

gasoline rationing

other factors

for

Estimates that gas tax collec¬

30 to 40%

The fact that

automo¬

September

1941

two

Defaults Bond Interest V

for the rationed States.

the

only

50%

same

tions.

un-

months, compared
collection drops of 39, 34 and

tions

drops.

and

November

and

11%

32%

of
heavy vacation travel, and in
September and October, when
non-essential driving normally
August,

States

be¬

drop might stabilize collec¬

tions

counted on

and

collections

tax

States

The

between

explains in

pact of the

"voluntary" Niagara Bridge Unit

was

rubber

unrationed

tober

reports.
also

reflect

Gas

those

where

areas

conserve

biles.

further

eastern

however,
nue

tax collections

gas

areas

unrationed

same

the Federation

1941,

of rationed

mileage rationing

39, 34 and 32% un¬
for

indicated

comparison of
rationed

the*

the

collections

der

revenues

collections

tax

three

below

fiscal year.

1942

This, is

letter

acute enough to force ra¬

come

stabilized

will be

source

the

age

have been cut about 35%

motor¬

ists.'Should the gasoline short¬

revenue

eastern

charges,

County, N. Y„
Refunding Contract

Extends

against Jan. 1
bond (interest
requirements
of
$85,000. Operating costs for 1943

lon of gas a week—four instead

Declines

Nassau

total

mo¬

Thursday, January 14,-1943

NEW ISSUES

Interest

Exempt, in the opinion of counsel, from Federal Income Tax by the provisions of the United States Housing Act of 1937,
and from Njew Yor\ State Income Tax by the provisions
of the Public Housing Law of 7s[ew Yor\.

$37,013,000

V:U

'•

'■

'•

;

New York
»:

—

■

...

Refunding Bonds,

"Y .'

.7; 7'

'•

/•

•

■.

...

V-Y-Y.

.■

' '

I" '

;>•

4-.-Y-4.

•1
•

*->.'•

Due March 15, as shown below:

Legal Investments in the State of ?{ew Yor\, in the opinion of counsel, for Savings Ban\sj ?. :
Trustees and other Fiduciaries, Insurance Companies, the State of ?{ew Tor\, its
Subdivisions, Municipalities and all other Public Bodies and all Public Officers, Y Y/Y4YY :

:
t

•

First and Second Issues, Series A

1943,

September 15, 1940
/

Y'.Y

...

Dated

\7.'Y

City Housing Authority

'•

•

Y
Iy- '

4':

i..'
•

Amount

i
.

Rate

Due

608,000;,

1944V
1945

■

;

%%no% -m
...85

757,000

1.00

816,000

■».'

852,000 4
872,000

1947

1.10

1948

1.20

1949

1.30

1950

1.40

;

1951

1.45

Rate

Due

^ 777,000 / 2J-2%796,000
2/4

;

2.12
2! 2
2/2

720,000
739,000'

Amount

1953
'

834,000
r

1.50% 7 7

1.55

1954

i y>

2.10

1.95%

1965-66

: 1969-70

2,io

}

2.05

\4 4;

2,291,000

2.10

2,390,000

2.10

: 1971-72

99 34

2,489,000

2.00

■1 1973-74

9734

2.00

5,927,000

•Y'

4*
;

2.00

1967-68

2,590,000

%7>7

Price

1963-64

■

2.20

2,197,000

Yield

Due

{ ;i >v

2.20%.

2,104,000

-4

7 771.70

•

■Maturity

Rate

$2,013,000

1.65 ••'•■7'-4;

1955

Amount

1.60

1956
mm

•»

Maturity

1952

2/i

■

Yield

43-2

665,000 7<
696,000

1946

636,000

Maturity

44%

$581,000

Yield

•..

2.00

■'"<

892,000

'2/4
2 j .i

,7>' 1,844,000

•

V': 1.75

1958

2.20

1,927,000 ;>

1957.

;

2.20 ;

Y-

1.80

1959"60

;

1.85

; 1961-62

;

•

1975-76

1.90

•7.YVV; '7

1977-81
fh'-U

..I'

; ;

96/

«•' '

•

V' '•

■

•7

(and accrued interest)

The $33,827,000 bonds maturing March 15, 1949

7s.•a.7'7:,t.V-;

March 15, 1981 inclusive

are

redeemable,

/•'YYYYY

the option of the Authority,

on terms

j.'V 7

<'■

and under conditions referred

•'

YY'-v 1

;y7'

•

> i

*4 Y

i° the Resolution,

at 105 on or

after March 15,19-48 arid'at decreasing prices thereafter, but prior

;VY / 4 7.7%7- Y7■YY44/Y4 Y :Y77Y7;Y'7;/Y4Y::77:' YY-77-7y7'77' '''7YYY 4'%-/-'Y 77777-7
\

-Y';

;

These bonds

:Y'YY7yY/

•

v. ■'

■

Blyth & Co., Inc.

---v

Blodget

Y.vV-

Paine, Webber, Jackson <&. Curtis

.'Y;-':4'"YY,V>.»*•. V"Y

'
.

4'-

•

- ■

YV':/
4v%v

;

Union Securities Corporation^
,'V. ';

■^

•

Reynolds & Co.

■

Estabrook & Co.
•

' ' *

••

Bacon, Stevenson & Co.
'

•

•■■'X:

■

B. J. Van Ingen & Co, Inc.
(

•

jHarvey Fisk & Sons, Inc.:
......

■

•
„

praham, Parsons & Co.

.
^

Hemphill, Noyes <Sl Co.

L. F. Rothschild & Co.

•

E. H. Rollins & Sons

Eastman, Dillon & Co.

Incorporated

Roosevelt & Weigold
Incorporated

Schoellkopf, Hutton

Pomeroy, Inc.

McDonald-Coolidge &. Co.

Darby & Co.

Cleveland
•

January

•: /

;

' Goldman, Sachs & Co.

•

'■

'■%.-r

' Y

••

Smith, Barney & Co.

Shields & Company

.,V/'7;V'•

Equitable Securities Corporation
"■

Incorporated

'"-7 YY-77 44:77Y■■Y7'Y/-. /Y-Y 7-4 %Y 7

R. W; Pressprich & Co.

Lasard Freres &. Co.

Stone <Sl Webster and

•.

Blair & Co., Inc.

|F. S. Moseley & Co.

''YYY

The First Boston Corporation

Incorporated

accrued interest.

;

Phelps, Fenn.Co.

Harriman Ripley &. Co.

;

7777 7Yv.'7Y 4XY -:4Y:77

case,

are

;[•

Lehman Brothers

maturity at not less than 101, plus, in each

offered when, as and if issued and,received by us and subject to approval of legality by Haw\ins, Delafield & Longfellow, Hew Tor\,
Counsel of the Authority. These bonds are a part of a total authorized issue
of $37,580,000 Series A bonds purchased by the undersigned, of which *
$567,000 Series A bonds maturing March 15,1943 are not being offered for sale. A prospectus is available at the offices of the undersigned:

Bond
*

■

7Y7Y777 '■

13. 1943.

\Volume 157
.70% yield
1944

'Number 4142

the 4Vt % bonds of

maturity

96 V2

from

to a' dollar price
2% bonds maturing

for

1977-1981.

The

business

review

"Newark

Sunday Call."

Referring
in

market

bonds

non-callable

section

the

the month of January.'

est, the
that

municipal
throughout

general

Council

this

marks

year

Of inter¬

time—the other

the
in

was

the recent year, Mr. Rippel said
it "gave an exceptionally good

many State legislatures have met
with the nation
actually at war.

callable

account of itself during the first

Most regular sessions were well
under way, and
many adjourned,
when the United States entered
the World War in

March

ing

the

vision
1937

thereafter.

Income

Taxes

the

Public

from

pro¬

Housing Act of

and from New

New

•

interest

exempt

Income taxes by
.

after

counsel

bonds

Federal

105

prices

opinion

on
.

are

15, 1948 and at decreas¬

call

the

Below

1917—so

York

State

the provisions

Housing

Law

York.

Other
group

adverse
efforts

the

offering

Moseley & Co.;

Elair

& Co., Inc.; Lazard Freres
Co.; Shields & Company; Union
Securities Corp.; Stone & Webster

year," despite the

war

effect
of

the persistent

the

Treasury to sub¬
ject municipals, including out¬
standing issues, to Federal tax¬
ation.
In rejecting these pro¬
posals,

Mr.

Congress

Rippel

National
ments

the

issues

and

which

Treasury,

;

the

tra¬
our

State

and

Blodget, Inc.; Paine, Webber,

&
Curtis; Reynolds &
Co.; B. J. Van Ingen & Co., Inc.;
Equitable Securities Corporation;

New

moves.

Legislatures To Convene

meet

Estabrook

1943

and

with

& Co.; Bacon, Steven¬
Co.; Harvey Fisk & Sons,
Inc.;
Graham, ■ Parsons ' &
Co.;
Hemphill, Noyes & Co.; L. F.
Rothschild & Co.; l£. H. Rollins &
Sons, Incorporated; Eastman, Dil¬
son

lon

all

confronted

convene

P. A.

the

celed

sales.

note

issues

as,

are

Eastern

in¬

lends

during

that

and

South

ment

Carolina;

Texas,

Nevada.

Florida's

bonds

April

and

Alabama's

May

Municipal Lawyers

The

New

This is under
or as an

York

municipal law
firm of Reed, Iloyt, Washburn &
Clay, resumed as of Jan. 1, 1943,
the

former

firm

name

The

the

city,

the

Nuveen

offer is made only by

Co.,

with

account

Blair

$4,100,000 Maricopa
Bids

for

State

;

these

bonds

Treasurer

will

by Arnold E.
Secretary
of
the
.Board of Sinking Fund.
Trustees,;

Last

trustees

the

city

and.the

sinking

Board

offering

similar

offering of these Bonds for sale,

of the Prospectus.'

•' /

the

request

istered

bonds,

JDated January 15, 1953

Dated
v

and other incidental

minimum

for any

The

one

charge

and

for

January 15, 1953
1

issuing

!•'

!' V V

•

Due

January 15,1958

Due
I

(

January 15,1953
■'
*•

•

$30,000,000 Fifteen Year 3% Bonds

issue. V;V ;;V:VVV;M'V
.was /also
au-;
directed to .make a

the

'""

charges
charge of $45

Dated

Secretary i

.thorized

$30,400,000 Ten Year 3% Bonds

other, and all mailing, insur¬

any

ftfS1IIS

$30,000,000 Five Year 2lh% Bonds

In making the
•exchange, the registered holder is
.required to pay the entire print-.
<ing costs,, plus a service charge
of $10
per issue,
together with
ance

■"

of holders of reg¬
to exchange them

for coupon bonds.

-with

J.'-:.:V4vtV

BONDS

trict, the Secretary is authorized,

January 15,1953

Due

January 15,1958*

regis¬

tered bonds at $1.00 for the first
ibond and $.50 for each additional

This charge shall apply not
only for the conversion of coupon

•bond.

bonds

into

registered

bonds, but
registered
registered bonds.1

PRICES
V;

also for the transfer of

bonds into

new

Debt

•

Five Year

»*

{

•

2'A% Bonds 100% and accrued interest

Ten Year 3% Bonds 100l/2% and accrued interest

Fifteen Year 3% Bonds 98'/2% and accrued interest

'Superior, Wis., Effects
:

Levelling Program

;

>v,v

»•

J'•;>

-9 r '

,,,'r

4'.

-Successful completion of a level
debt service plan for the city has

-equalized its .debt - calendar
to
eliminate' the* necessity for addi-'
.

tional

refundingand

permit a'
•regular and orderly reduction of

Copies of the Prospectus

indebtedness, according to N. J.
Sindelar,' Director of Finances.!
•Pursuant

•terminated

.'or

94%

the

which

program,

15 .last,

Oct.

these Bonds in
j

•

may be 0btained from only such of the

compliance with the securities
-

•

>•

laws

undersigned

as m ay

legally offer

of the respective States,

! 41

$714,500.

,n'

$760,000?:eligible

bonds

were
exchanged. The ex-;
change, proposal was conducted,

syndicate

headed

First National Bank

& Trust

■^Minneapolis. ;\:V4.V;-V: V

■

•

MORGAN STANLEY & CO.

the
Co.,
i

THE FIRST BOSTON CORPORATION

SMITH, BARNEY & CO.

New

Jersey And Local Units
Improve Fiscal Standings

HARRIMAN RIPLEY & CO.

Continuing reduction of bonded
indebtedness by the State of New

Incorporated

Jersey and its local subdivisions,
coupled
with
excellent
current

WOOD, GUNDY & CO., INC.

DOMINION SECURITIES CORPORATION

.and

delinquent tax collections, "is
rapidly placing the credit of New
Jersey municipalities on a par

with
in

the

finest

the United

municipal

States."

A. E. AMES & CO.
Incorporated

credits

This

view

was
-

expressed by Julius A. Rippel, President of Julius A. Rippel,

•Inc., Newark,..in.

article, con-,
ttained in the annual financial and
an

Dated

January 1//, 1953,

tbn

bonds

was

pur¬

Baltimore,

Com¬

missioners for the city school dis¬

county.

by Alex. Brown & Sons, Baltimore,
and Associates, the second high bidder be¬
ing the Mercantile Trust Co.,

fund

the

chased

clear-

syndicate.

means

received

Baltimore
Coi;
MdL,
Metropolitan District Bonds.

Government ofthe Dominion of Canada

.that in accordance with
appropri-;
-ate action taken at
meetings on
Jan.

V.V

Inc,

February 9

•

$90,000,000

advised

are

awarded

Co.,

$1,600,000

Charges

Majoewsky,

Co., Ariz.
be

behalf

Hoyt & Washburn.

Cincinnati Sets

and

February 1

Reed,

"For Bond Conversion

making next best bid.

^refunding

snow

City

$674,575
high school

city

loan,

solicitation of an offer to buy, any of such Bonds,

or as a

syndicate

ance

circumstances to be construed

offer to buy,

ac¬

January 26

Co.; Roosevelt & Weigold,
Inc.; Schoellkopf, Hutton & Pomeroy, Inc.; McDonald-Coolidge &
Co., Cleveland, and Darby & Co.

Resumes Former Name

Co.

$7,900,000 Seattle, Wash.

N. Y.

Freres

John

the" legislators

consider

funds for

conserve

Lazard

district and the
city school district,
$313,500 State of California bonds.

highway bond issues ma¬
turing during war years in order

convenes

with

$988,075 Pasadena, Calif,

certain

;V:V4V;VV

legislature

well

Harriman. Ripley
making the second high bid.

em¬

refunding

can¬

conditions.

revenue,

"might

market

Holdings being offered
by
the
Pasadena,
Calif.,
consisting
of

Governor Sewall's suggestion
that,
due to decline in highway
depart¬

Wyoming, West Virginia, Wiscon¬
sin and

lead

award

associates,

count

highway bonds by some of the
* ; States. The State of
Maine is a
Geor¬ distinct
possibility
in
light
of

Arizona, Arkansas,

Mexico,

may

poor

$500,000 Nashville, Tenn.
Previous

pleasure driving
States

January 19

these,

Moreover, the recent

•

ban

because

and does

over

District,

1941, was

Previously, an award was made to E.
Pressprich & Co., New York.

to the previous impression
reduced gasoline tax reve¬

nues

Iowa,.: Oregon, Utah, Wash¬
ington, Kansas, New Jersey, New

Council of State Governments. Of

26 will

include

gia,

perplexing
problems stemming from the war,
according to a statement by the
the total,

$500,000

port bonds.

Maine,: Maryland,

Also

legislatures
sessions during

will

number

not

Hampshire, -New
York,
Carolina, Vermont and In¬

diana.

State

regular

terest to the

ticut,; Illinois,

North

Forty-four;

included

forthcoming

Levee

Proposed sale In December,

Massachusetts, Michigan, Missouri, phasis

During Present Year

generally speaking,

States

(

Jackson

offerings

Orleans

La.

record of the

; January 16 .\V

$983,000

Our tabulation is restricted
to is¬
sues

Pennsylvania,
Rhode
Island,
Dakota, Colorado, Connec¬

give

calendar

South

govern¬

involved";

are

VV:'\

trade. In connection
having legislative
the
sessions in January are: Califor¬ with
record,
it should
be
nia, Idaho, Montana, Ohio,; Ten¬ noted that the City of St, Louis
is expected to make an
nessee, Delaware, Minnesota,'Ne¬
offering
in the near future of
$600,000 air¬
braska, North Dakota, Oklahoma,

The

deep,

between

relation

April, 1917.

added, "the

recognized

fundamental
ditional

members

are:

complete

major

V |V\

;

Scheduled

second

for five years and then become

Major Sales

said, is the fact

THE
186

much

Savings Bank Of Brooklyn

tivity,

This

its

from

former

depositors
for

800

Savings Bank of Brooklyn
method of reporting its statement of

has deviated
condition to

31, 1942 has been broken

and its statement as of Dec.
entirely new manner which

it is felt will make it easy
depositors to understand the meaning of the figures given.
The Bank's statement appears below together with other com¬

down

1942,

the Dime

year

made over 1,100 new
loans during the, year

mortgage

Issues

in an

were

for

these loans' more
F. H. A. insured,

were

many

mortgage ac¬

usual

our

Thursday,- January 44, 1943

CHRONICLE

COMMERCIAL & FINANCIAL

payment plan was pointed , out: in. the

The need for a new tax

designated

areas

the Board of

report of Winthrop W. Aldrich, Chairman of
Directors; of the Chase National' Bank of New York

annual

This hous¬

housing.

defense

than
and

to the stock
said Mr. Aldrich,
"that a new tax bill will be considered by the new Congress."
•,
"With, Federal expenditures necessarily increasing," he noted,

workers is a para¬
mount adjunct to the success of
our government's program,
y !
ing of our war

holders

"It is commonly expected,"

12.

Jan.

,
r^it is inevitable that the Federal
Bank Life Insurance—] Last year more than 30,000 mem- Government will have to resort
14, 1941 we rounded out,
higher and higher : taxation.
bers enrolled. To these members to
our
thrift service With Savings
One of the main functions of war¬
we distributed on Dec. 1st Christ
Bank
Life
Insurance. < To
date
mas
Club
checks, i totaling over time taxation is to draw off at the
over
950
persons
have availed
source funds which might other¬
Why not ' join our;
themselves of • this protection by $1,565,000.
wise pass into the stream of con¬
that year also, we had the. pleas¬ subscribing to more than $800,000 Christmas Club and see how easy;
To Our Depositors—The Dime
sumer
expenditure!' and compete
it is to get into the habit of sav
ure of welcoming over 29,000 new
of insurance.
Savings Bank Life
Savings Bank of Brooklyn is a
with the Government for goods
ing regularly?
Classes from 25
Mutual savings bank.
It has no depositors. These deposits for the Insurance is one sound way to
already in great demand for the
cents to $10 weekly.
most part have been invested in
provide protection for yourself;
stockholders and is operated en¬
prosecution of the war.
It,is ob¬
United States Government securi¬ and
your
entire
family.;,; All: ; Dividends — Our earnings for' viously, impossible for the. Gov¬
tirely for the benefit of its de¬
ties to help finance the war.
At standard forms of policies: are the year were • satisfactory and
ernment to obtain through taxes
positors. As a depositor, and one
the present time better than 26% available and the costs are sur¬ sufficient to enable us to declare
of the joint owners of the "Dime",
all it needs to balance the war
of our total deposits are invested
202nd
consecutive
interest
prisingly low. Ask for our book-' our
we present to you the " following
budget; but the more it derives in
in
United v States
Government let.
dividend to depositors. This divi¬
*
that way, the less is the hazard of
report of activities for the year
bonds.
In addition to the safe¬
dend, declared for the six months inflation.
For these reasons the
ending Dec. 31, 1942:
Safe Deposit—The problem of
guards of long experience and
ending Dec. 31, 1942, was at the
heavy, and rising income tax pay¬
War Bonds—Beginning May 1,
careful management, all deposits safeguarding valuable possessions rate of 2% per annum.
Deposits ments are
amply justified."
L
1941, United States Defense Bonds in this bank are further protected took on new significance during made on or before the third busi¬

made on
flected, to some extent, in our
the back of the statement pertain
During the past year
ing to the Bank's activities which deposits.
was
deposited with the
it is felt would be of interest to there
Bank
over
$30,000,000. During
depositors.
ments

which have been

Savings

On Nov.

War Bonds) went on

(now called

throughout the country. Since
that date we have sold over $15,sale

the
past
year.,
The
war; has
surplus (which now ex¬
dollars) and by brought into being such new items

our

value

insurance.
Every dollar
deposit is insured Stamps,

and

October

the first day of such months and
selective
service data, money on deposit on the first
through the Mutual Savings Bank commissions, warrantsy discharge business day of all other months
to the purchaser or the govern¬
Fund created in accordance with papers, and other military rec¬ will draw interest from the first
New
hazards
have
also
ment; a task which has steadily the Banking Law of the State of ords.
day of all such other months pro¬
increased
in volume,
especially New York and operative since arisen, such as the possibility of
viding, however, that all of such
since Pearl Harbor.
Buy Bonds 1934.
bombings and the increased dan¬
deposits remain until the end of
regularly out of current income;
ger of theft and fire during black¬ the interest period. Dividends are
Mortgage Investments—Al¬ outs.
save regularly too in your savings
During 1942 we rented over now being credited semi-annually
of
building 3,400 safe deposit boxes to new
account for taxes and emergen- though ' shortages
on
the first day of January and
materials,
priorities, and
other renters. A safe deposit box. is a
cies.
■
:'

and Stamps

000,000 in War Bonds
as a

deposit
of

every

patriotic service, without cost

in
to

Deposits—The general increase
employment and wages, due
the war effort, has been re¬

July.

government
restrictions
have sensible place for valuables. We
practically stopped the building cordially invite your inspection
of new homes, thereby curtailing of our modern vaults.

-iii

•

;

Harris & Co.

Organized as N. W.

that this report will
interesting as well as en-;
Christmas Club—Our Christmas
lightening to you.
Should any
Club has always been one of our
questions arise regarding it, we
most popular services. Every year
shall be very glad to answer them.
more
and more depositors take
advantage of this easy way.;,to ac¬ A Philip A. Benson is President of
cumulate
money
for Christmas the Dime Savings Bank of Brook¬
and other year-end expenditures. lyn. r; p.v ;A -y-A\:fV! /

CHICAGO

TRUST BUILDING,

HARRIS

Bank

1882-^-Incorporated 1907

hope

Savings Bank of

The Dime

-CRESOURCES. ]v

Statement of Condition
December 31,

by the United States

Guaranteed

Governments-!';

R a: 1 roa ds'

Banks__$104,137,227.20

-—
2 222Zt -22-— _ -2 2 2 "_2__!22-l22222-2222-L2222!:_2l_-2-

,/.i

Hand and Due from

U. S.

Treasury Bills and Certificates.

65,163,000.00

Bonds and Notes..

83,375,161.10

37,401,109.42

Interest

State and

Municipal Securities

Other Bonds
Loans

and

41,681,740.50
80,067,135.05
450,000.00

Securities......—

•

Discounts

Federal Reserve Bank

Customers' Liability

Stock....—_

Acceptances

84,902.91

$413,586,001.45

Total

101,855,345.37
3,796.482.62
2,645,685.93
1,438,119.62

Due
Due

19,032

Depositors

204,597

61,826.73

and

that they could be cov¬
year's income

ered out of the next

The

defaults.

have

is entirely different.

now

case

income

Individual

liabilities

tax

immensely, and un¬
has used excep¬

grown

less the taxpayer

foresight

tional self-restraint and

and has set aside funds in advance,

certain

almost

into

to: run

Indeed,

around.

come

scarcely help it, unless he em-

can

joys

higher income in each sub¬

income plus ac¬
With our great

of new taxpayers who re¬
incomes in 1942 beyond

their previous experience
find

March

bills equal

tax

earnings of several

at least to the

weeks, the Treasury runs the im'minent
danger
of
meeting
a
tremendous number of defaults."
observed

Aldrich

Mr.

order

that

the "inequities due

cure

of provid¬

the historical error

567,007.74
342,000.00

many

there

come,,

234,764.30

Liabilities

with

and who

confronted

themselves

will

ing that this year's income taxes
be assessed against last year's in¬

145,843.75

Club Depositors——
Accounts—Interest, Taxes, Etc.
Expenses Accrued
——2

Other

enough

without causing too many

•

„!2—$210,059,111.65

Christmas

Taxes

' '

liabilities

—

after incomes had
probably spent,

year

been received and

63,585.49

—2—!!—

from

proposals

are

quarters designed to put the
taxpayer on a pay-as-

American

1,225,725.27

Accrued Interest and Other Resources

•

$245,578,678.25

Mortgagors'

Credit

and Letters of

.1,247,850,00
'• ',.25,809.874.01

(Less Reserves)-!—-—2_!__:22_!—-2* -

Assets

Other

94,538,142.32
" ■*

and Accrued-!———

Prepaid Taxes

nearly

body

Other Real Estate
Due

ment of taxes was three months to

ceived

Banking Houses

U. S. Government

Though the lag in the pay¬

light.

5,751,149.00

Real Estate

Mortgage Loans on

adopted, the rates fixed in the
successive statutes were relatively
was

5,762,595.37

Savings

incomes

of taxes on

cumulated savings.

Banks Trust "Company and
"" . Institutional Securities,Corporation i_
—2™2—2-2
H. A, Insured 'Mortgage Loans on Real Estate—-—___2—_2

Investment

Cash

levying

able continuity of

Utilities

Public

6,800,000.00
290,422.60
8,958,688.56

Municipalities
«

the

authorizing

amendment

sequent year or at least a reason¬

$66,975,286.79

Stales'

Resources

•

$14,121,666.16'

Government

States

United

When the Consti¬

payments.

tutional

dates

%■!;'•■:

Bonds:-'w-rv-!7V

1942

tax

pressing needs
lag in income

eliminate the

difficulties when the tax payment

banks' and' trust.

and

hand

"One of the most
is

Brooklyn

Statement January 1, 1943

Cash

respect
to
forthcoming
Mr, >Aldrich stated:

the amounts involved were .small

prove,

Harris Trust and Savings

Withtaxation

and

Bonds

War

days of January, April, July
draw interest from

ness

34 million

ceeds

$211,348,727.44

basis."

you-go
$34,229,850.81

Surplus at Investment Value.

He went to say:

proposals have the merit,
from the fiscal point of view, of
not
affecting in any important
"Such

the tax receipts of the Treas¬
either upward or downward,
and do not change the rates of
way

Liabilities

ury

taxation fixed by Congress.

CINCINN AT I, OH!

6,000,000.00
9,000,000.00

Capital
Surplus

Statement

Reserves for Taxes,

Interest, Contin¬

gencies, Etc.
Acceptances and Letters of
Demand
Time

MEMBER

Credit.__

24,506,849.68

7,104,081.83
84,902.91
,

386,924,649.04

Total-_._....__-.i$413,586,001.45

and

Cash

Due

States

United

of State and

of U. S.

trust

States Government deposits and

deposits,

Occupied-!——2—22—>

(

4,975,000. 63

76,235. 53
Customers' Liability Under Acceptances-1—1—39,533,
18
Other Resources-*-'-!!-!-222-'----'!——L2—!—,!!■•
654,947.
Other

Real

Estate

_—

—

———————$191,731,795.26

and

qualify

for

$14,617,685.90

fiduciary

powers.

Capital Debentures
Capital Stock

22-._222--.--------22-_2—;—J_2!
2-2_2_-_—222——2-2— -2'J.—

900,000.00

5,000,000.00

'f 4,200,000.00
Undivided Profits
!
2.
* ' 1,179,782218
Reserve for Retirement of Debentures—.—
150,000.00
Reserve for Dividends Payable——
———
50,000.00
Reserve for Interest, Taxes, Etc.—2_'!2—2 —:
236,842.34

Surplus

—

Member

Federal

Deposit

Insurance

Corporation

Liability Under Acceptances!!
DEPOSITS:

.■.....

■]-.••._'.2

Other

Liabilities

TOTAI

Government-

!__

2*'

164,781,676.44

Commercial, Bank and Savings
U.

39,533.53

^__!

_____

_2—

proposals aim to do this.'
advantage of these

not

15,029,221.73

2—2—22_^2__.—'" 164,739.02
.——$191,731,795.26

only to the reality of the war

years, but
the future.

also to the reality of
.The principle of these

proposals should be adopted, and
placed immediately

income1 taxes

pay-as-you-go

Con¬

basis.

has already recognized the
principle of these proposals In the
Victory. Tax as part of the Reve¬

gress

nue

LIABILITIES

$29,749,--

eliminated,

suggestions is that they adapt the
timing of income taxes to reality,

and

Banking Premises.

can

over-all

The

Securities-—10,021,025. 16
Loans and Discounts——_2__i~2_-—2_.;
*!!.— __ 22 2222 !'• 48,706,274.
00
Federal Reserve*Stocks-—.-—2-22222_—---2-2J-2221-t~300,000.
00
Other Bonds

calendar

and the

FEDERAL RESERVE SYSTEM 2

Government obligations and $512,271.91

Municipal securities are pledged to secure

754.62 of United
«.

•

from Banks
$63,961,493.44 .
85,
Bonds_i!_-i—62,997,285.41 $126,958,778. 91

TOTAL—
$44,820,000.00

Deposit Insurance Corporation

benefits

tax

RESOURCES

Deposits__$362,417,799.36

Deposits.....

of December 31,■ 1942

Member Federal

$ 19,472,367.67

Undivided Profits—A 4,472,367.67

Wind¬

due to changing the

fall

Act of. 1942."

Mr; Aldrich

■■■"

"there is still another

corporated
which

likewise stated that

the

can now

principle in¬

Victory

Tax

be broadened with

benefit to the whole country. This
has

with

those

sections

provide that some part of
the taxes withheld in
1943 may
which

be considered a

liabilities.

credit against tax

The

idea

underlying

well be
back¬
log of savings available for future

these

provisions

might

utilized in order to create a

Volume

use."

157

Number 4142

THE COMMERCIAL & FINANCIAL
CHRONICLE

$756,500,000 over that of a year
entirely possible to devise,a tax iago.
This "extraordinary increase

187

! He contends.that fit should

which would at

measure

duce

.-revenues

once

;in deposits is accounted for

pro¬

higher .than
under present schedules and give
even

ly. by

Rentschler Of Nat'! City Sees

large¬

rise of $645,328,000 in the

United

States

War

Loan

Deposit

the taxpayers additional purchas¬
;Account."
,\v:,
:
ing power to meet, future needs.? ; From the report of Mr. Aldrich
Such a tax measure he said "could we also

Changing Times
Govts, Up

:In.his annual report to shareholders of the National
City Bank
on Jan. 12, Gordon S. Rentschler, Chairman of
the
Board, noted that the year was one "of great change," with
quote:
V;':
;
conditions
be so framed that some part of in¬ i i "The
.average in t er e s t rate vastly different at the conclusion of the year from those at its
begin¬
come tax payments would be re¬ earned >on all loans and
invest¬ ning, and he stated that "it is clear that the war will bite
deeper into
funded:. or otherwise made avail¬ ments of the bank
during 1942 [the operations of this bank along with the country's whole economy."
able to the taxpayers in the post¬ was
—
;
'
1 ■.'
1.34%;: the same as in - the He added that it is the bank's^ ■
—————.
war period." <
V: -V'V'A
"\
preceding year, but the average purpose "to greet this as one more
Chairman Rentschler declared
.

;

New York,

7 As to
the objectives of tax legis¬ .volume of earning assets employed opportunity
to demonstrate the that "to a steadily
increasing ex¬
lation, Mr.- Aldrich had the "fol¬ during the year was 16% larger essential character of the service tent the activities of this bank
of the banks to the
than for 1941.
The average rate of
lowing-to say: —
country, in war have centered around the nation's

and

interest earned on the bank's port¬
peace, an opportunity for
■\\ "The tendency of tax legislation,
folio of United States Government our bank, and other banks to show
if the American
system of indi¬
their4 competence and their
securities in 1942 was(.76%, com¬
public
vidual enterprise is to be * pre¬
spirit in carrying through effec¬
pared with .59% in 1941.
;
served, should be toward promot¬
;; "The expenses of the bank for tively their part of the job that has
ing
initiative
and
not
toward
the year 1942 showed an increase to be done.".
7: '.';

war

purposes and other loans are sub¬

stantially reduced

con¬

tribution to the successful prosecu¬
tion of the war has been made
by

American

industry

industry.
formed

Ours

initiative

and

produced

results

tarian

the

system

war

The

vices

raise

labor

both

for

final

give

avoid

any

tion

supple¬

1941.
Payments
Deposit Insurance

Federal

The total assessments

since

its

$14,345,000."

have a contrary effect.
in wartime no arbitrary
limitation should be imposed on
the net income retainable by

taxpayer." -The
available

executive

taxes

should

and

group,

dicated
list

year,

income from other

while the
is

sources

decree.

should

discussing

the

al¬

Lewis

con¬

activities

the

earnings of $13,130,746 and mis¬
additions of $144,969
brought this figure to $108,666,cellaneous
809.

With

dividends

000

the

and

year

totaling

transfers

the

for

were

BANK

DETROIT

from

Complete Banking and Trust Service
Statement

of Condition December 31, 1912

told

"Gilbert

Brothers"

who,

for

RESOURCES

many

1, there

Aug.

was

increase

Yesterday,
taken

Cash

$4,680,000 in the undivided profits
account during 1942."
:
': -V

■/"/V :,;.7

directed by

Mr." Aldrich

defending

banks

and

Bankers

the

New

York

Real Estate

Branch

that adopted

years

State

tions.

Association."
operating earnings:

Interest

and

loflns_A-r
dividends

„

$16,475,000

511.106,477.70

900.000.00

■'

...

15,791,615.24

1,088,046.17
1,659,438.58
348,190.97

...

Customers'

Liability Account of Acceptances and Letters
of Credit

*,r

►

TOTAL RESOURCES

in recent

2.277,000.16

....

$1,036,191,768.68

banks and corpora¬

many

The vote

102,409,795.92

29,154.49

$ 86,589,026.19

this resolution

LIABILITIES

Deposits:

77-SS:

securities

20,299,000

Fiduciary fees, ;commisions, etc,

!6)6()0,009

Firm

A——.— $43,374,000

Total

Commercial, Bank and Savings

Changes Name To

U. S. Government

*
'

77.'

•'

■"

Current -.operating

77V 7%

expenses:

Salaries

7---7 $14,178,000

current

*rv ;•

operating

expenses

A. W. Smiih & Co., Inc.
BOSTON, MASS.—A. W. -Smith,

15,831,000

president

General

Investors

Other Public

—

current

$30,009,000

operating earnings $13,365,000

and Undivided

Profits

7-v /

Net current operating
(as above)

profits

'7.

$13,365,000
•

1,675,000

earnings for year 1942

•

has been

name

Co.,

overcome

confusion

firm's
7

declared—10,360,000

Surplus and undividend profits

Surplus

10,000,000.00
.

name

directors,
the

in the

business

corporation, -which con¬
England

tinues to distribute New

Fund and General Investors Trust.

ABA Capital Office Moves
Washington

American
which

has

Bankers
been

;

6,414,925.28

•

36,414,925.28

Reserve for Common Stock Dividend No. 17

payable February 1, 1943

Reserves

.500,000.00

...

.........

2,856,417.95

.
^

Our

Liability Account of Acceptances and Letters of Credit
TOTAL LIABILITIES

office
.

are

pledged

2,277,000.16

$1,036,191,768.68

public and

to secure

trust

$167,827,002.69 in the foregoing

deposits and for other

purposes

statement

required by law.

the

Association,
*
Washing¬

Member Federal

the

the ton Building for the past five
important changes
that years, has moved across to the
Which occurred in total
deposit opposite side of the street to the
liabilities; he said, "on Dec. 31, National
Savings and Trust Co.
1942,- the deposits of ihe Chase
building, it is
as

11,500.000.00

and

The

1942___„„^__„,^$145r.320,000

Mr. Aldrich cited

994,143,425.29

8,500,000.00

Undivided Profits

caused

with General Investors Trust.
%
There is no change in officers

25,775,756.89$

Capital Account:

changed to A. W.
Inc., in order to

some

17,471,138.06

15,040,000

$155,680,000

'7121,583,774.66

.7.

United States Government securities carried
Less!" dividends

.7.

$829,312,755.68

Preferred Stock.

securities

Common Stock

that the

announces

by identification of the old

Surplus and undivided profits
Dec. 31,
1941
,__$14Q,640,000

Deposits

Corporation, 111 Devonshire

Smith. &
Reconcilement of Surplus

.Treasurer, State of Michigan

Street,

Total

Dec.. 31,

.'%

4,490,000 shares for, and 26,802 against."
'

Net

Buildings and Leasehold Improvements

Prepaid Expense
r

earnings

was

Current

Add:

Accrued Income Receivable—Net...

The latter resolution is

357,910,697.17

58,492,122.01

Mortgages

Overdrafts

wrong-doing is

involved.

V,5

brought

similar

by committees

of the American Bankers Associa¬

tion

negligence

fully

Loans and Discounts

ficial duties with the bank, where

use

suits

Loans:-

were

acceptance

against
them in connection with their of¬

"substantially in the

form recommended for the

'■y;

others of the bank for expenses in

report of earn¬
ings which is presented as follows

commercial

votes

guaranteed

Obligations, direct

Stock in Federal Reserve Bank

directors, and a resolution ^to
indemnify directors, officers and

the condensed

in the report,

separate
the

Hand and Due from Other Banks
States Government

Other Securities

The attention of the sharehold¬
was

United

the
chairman's report, on the election

Deposit Insurance Corporation

among

announced.

National

Bank

291,467,000,

amounted

figure

which

$4,is

new

address

Street, N. W.

will

719

The

15th

•

declared

$6,200,-

reserves

that Private Gilbert, a
stockholder of the bank, is one of

cents per share each on Feb. 1 and

sion

re¬

Gilbert, "PFC," which
explained to the stock¬

holders meant Private First Class.
But the stockholders did not have

profits of

and that adding net operating

certain items of income of $1,173,-

Net

undivided

$95,391,094 at the beginning of the

questions sent by mail by

Mr Aldrich

surplus
Chairman

during

NATIONAL

13 in¬

Aldrich, inter¬
meeting to answer a

years, have enlivened bank
1942 amounted to $15,040,000
and corporation meetings of stock¬
or $2.03 per share,
compared with
holders by asking reserves.
Mr.
$14,518,000 or $1.96 per share in
Aldrich remarked that one of Gil¬
1941.
The net earnings for 1942"
at
the
he said,, "represent a return of bert's, suggestions. made
annual meeting last year had now
slightly over -3*% on the capital,
been put into effect.
This was
surplus
and .'undivided; profits!
that
special - items be voted on
After providing for the payment
by the- stockholders.
of
semi-annual dividends of 70 separately

■

surplus and
year

rer

Mr.

"Times" further reported:
"The communication was

year

■

profits,

Rentschler noted that the bank had

358 subtracted from the above fig¬
taxes and
depreciation
$13,546,526 compared with ure, surplus and undivided prof¬
its at the end of the year stood at
duced and operating expenditures
$12,785,642 in 1941 (adjusted to the
are higher."
He further said "it same basis).
The report further
This, he said, repre¬ $101,293,450.
seems inevitable that in the com¬
sents $2.18 per share for 1942 and stated:
ing year our Government security $2.06 per share for 1941 on the
"Profits on sales of securities
holdings will again be largely in¬ 6,200,000 shares
and recoveries, which are not in¬
outstanding.
creased," pointing out that in 1942
The National City Bank's net cluded above, have been transthe bank's holdings increased 70%. current
operating earnings for the
continued on page 189)

beginning of the

Army private now stationed in
Camp
Barkeley,
Texas.
The

the Chase National during the
past
year Mr. Aldrich stated that "the
liet earnings of the bank for the

Net

reconcilement

undivided

City Farmers Trust Co., its trust
affiliate, for the year after provi¬

income from its bond ac¬
count "is much larger than at the

tribution of management to indus¬
trial production is vital."

Other

In
and

-•

that

rupted

not

be remembered that the

ways

operating earnings, while
included $955,349 Inter¬
est paid, $12,595,776 salaries and
wages, and $14,620,837 other oper¬
ating expenses.
expenses

corpora¬

inception,

New York "Times" of Jan.

any

amount of income

after

income

same

♦

operating earnings of

securities, and $6,686,775 of other
current

the National City Bank and of the

bank's

In its account of the meeting the

governed by tax laws having equal
application to all persons in the

reported that the combined

current

operating earnings consisted of
$13,102,685 interest on loans, $21,513,248 interest and dividends on

„

"Even

ers

He
net

$13,130,745,

were

compared with $11,972,765 in 1941
(adjusted to the same basis). The

quired by law, have amounted to

which

may

the

paid by the bank to that

greater

measure

quarter of

the

000 in 1942.

the part of industry,

1942

Corporation amounted to $2,695,-

in¬

management and

continuously

production
and

but

revenue

ser¬

continu ation

in the ; lower salary
the basis initiated in the

range on

.ac¬

But the objective of the
Government should be not only
to

the

employees

cepted.

centive

the

mental compensation payments to

For

heavy and perhaps

taxation

represents

of. supplies* and

cost
and

throughout

totali¬

remainder

higher

has

approach.

can

years

increasing

that

the preceding year. V As an example of changing con¬
the increase ditions, Mr. Rentschler cited the
" larger reserve; set fact that at the end of the year the

aside, for payment of income taxes.

and

ingenuity.

over

one-third ! of

represents

developed
Under the system of private enter¬
prise,^ which gives free play to
>

5.6%

About

civilian out¬

put and purchases shrink before
the expanding demands of war."

repressing it. An outstanding

effort" and asserted that "new
have been largely for war

loans

year, after provision for taxes and

depreciation,

BUY

WAR

BONDS

REGULARLY

OUT

INCOME

FINANCIAL CHRONICLE

THE COMMERCIAL &

Tomorrow's Markets

(Continued from page 181)

;

preceding one.
Only the rails, in mid 1939,
broke through previous highs.
and 1941

went it was

came

and

loss of

holders of the latter.
:

Office

t'fl ;■*

sjs

But; if the upper

obstacles
clearly ^de¬

becoming

were

the

Commission

able to

was

the

same

in .1942

largest

31,

rate

same

Of-

in; 1941;

holdings

Oct,

its;
share/

pay

per

the-'

•

1942, seven:
of dividends"

1942

ag;in/1941-: ,'ThQ ;bulletin/
concludes:,// 4/.H,:
'4>\;.4.:.;; 4
,

ho-less--'-/

"Some investors are'now

ee}

c a n

ten

portfolio
paid the

Administration

government agencies in
requesting the
Interstate Com¬
merce

example,

dividends

setback,

the action of the

Price

much .less widespread thananticipated. Dividend Shares,"

stockholders

Favored

Still

with

for

and other

130 while the rails were find¬

ing 30*33, tough obstacle to
•';44% 44 •; <'4.:* 4 >

was

j";

/ :/

momentary

coincident

were

meeting trouble on each rally
in the neighborhood of 120 to

overcome,

Liens

Rail
After

apparent that the

industrialaverages

been

the

and

Government,

handsome investment for

;
183)

page

in December,., 1941; the
bulletin:
points out that dividend cuts have

(Continued from first page)

Canadian

lower than the

As. 1940

Investment T

;'. /' (Continued/from

4444''

Says

Reporter's

Our

Walter Whyte /

Thursday,'January 14, 1943

inclined than

year

to view

ago

rate> ■ in¬ the
dividend, prospects for : the; ;
creases
granted the roads last
coming year with misgivings. The / 4
spring, railroad bonds have come
foregoing figures may / therefore>.
back rapidly into favor marketbe worthy of consideration.
For//
wise. 1
,44//.y4.4/4 '4;// on the basis "of 1942 -experience/
;
This section of the market is
investors
who
select \ securities;
again
affording
both, traders > carefully, /diversify/ broadly* and; //
freight

and

passenger

fined the support zones were

s o

beginning * to

become

tunity for day to day trades and

In the industrials j;hey

clear.

and are, 110-115; in the
rails, about 25.:' 4 ■ ■ -.■ /. ■ 4: •/ ■ /':
4/4 * ■} * 44-/

positions.

SCHENLEY ROYAl RESERVE,

BLENDED WHISKEY,

60% Grain Neutral Spirit*.

/.t

86 Proof. Schenley Distillers Corporation, N. Y. C.

*•

4-J*4 •■4:

A4*':':'

•/—•

may /

supervise, constantlyto

enjoy

return

expect;

satisfactory/ dividend;

- a

1943.

This

another:

received an reason why, with admitted un¬
fillip from that part of the certainties ahead, shares of a well;

Such

were,
,

investors their best oppor¬

and

;

added

obligations

Commis¬

Commerce

Interstate

diversified

carefully- super-/

and

it vised investment fund have at¬
; / /v///:
It would be simple to close was suggested that the federal traction at this time."
The December issue of "Per-'
with -the statement that as body, might recommend that rail¬
roads segregate that part of their spective" is
replete with interest¬
the averages approach either
earnings '■ "arising " from
wartime ing charts comparing the course'
.

sion's

annual

report in which

the

.support

areas

supply
bought

main

But the

sold.:

the

;or

stocks should be

ob¬

increases

rate

for

and

stacle—timing—still remains
MOVIES

NEW

4/44' V.//// 4.4/ //; 4/4/:444/44/

debt

funded

betterments. :*.;

Cuts

Southern

And timing it¬

/v unanswered.
with Teresa Wright, Joseph

to¬

for application

reduction

ward

time

wears

the

indices

various-

present

World

first

the

during

with their action

war

War.

in;

chart

The

showing the greatest discrepancy

Debt

in trends is that of the Dow-Jones

the financial

Industrial Stock Average for the/4
getting an insight into two periods.* *
self,. depends a great deal on
■
'
*
Cotton, Henry Travers, Hume Croyn, Patricia Collinge, MaeDonald
what the easing of the Revenue
the
human
emotions men¬
Carey and others. 44# The entire" cast'under the direction of that
Act as it applies to railroad debt
"Prospects for 1943" is the title
ace spellbinder, Alfred
Hitchcock, does a fine job in a picture full, tioned at the. beginning of actually means to the carriers.
of the latest issue of Lord, Ab-;
of tension as the ominous stillness of. the air, .before a hurricane this column. And human emo¬
4 And at the same time it makes bett's "Abstracts." The excellent'
strikes. That the threatened storm holds off until1 almost'the last
tions depend in turn on the clear the extent to which such Cleveland
Trust, Company bulle¬
reel doesn't detract from the quivering tension which underlies each
issuers have been active in the
news factor,
4 '
1 r
tin of Dec. 15 is quoted at length.
incident of the story. This is a yarn about a manhunt, seen through
market in picking up their out¬

"Shadow of

Doubt"

(Universal)

world

■

<■

of the hunted. A likeable young man (Joseph Cotton)
standingobligations
wherever
from a Philadelphia rooming house and two mysterious
If, for example, the success possible at discounts.
shadowers, and heads west to visit his married sister (Patricia Col¬
The
latest conjecture
going
of United Nation Armies cap¬
linge) and her family in Santa Rosa, California. Her husband- (Henry
the
rounds
indicates
that
tures the .public
fancy, for
Travers), their eldest daughter, Charlie (Teresa Wright)\ named after
Southern Railway, for example,
her favorite uncle, and a precocious younger daughter and a small one reason or another, and
will be shown to have retired
son, are overjoyed at the visit.
Young Charlie feels, the visiting the industrials start picking
some $10,000,000 or more of its
relative will pull the family out of the stodginess she imagines it
debt up to Dec. 31 last, chiefly
up in volume across 120 you
has sunk into. His sister is glad because he is her favorite brother.
in the form of its 6s and
Her husband is happy because of the prestige a rich visiting rela¬ have every reason to assume
tive would confer on him. But the manhunt" sodn involves the family. that a 10 point move is in the
Puget Sound Power & Light
the

eyes

escapes

contributed

Wheaton

Bull,

Mysterious poll samplers choose the group as a "typical American
family." It is obvious their interest is ndt in the-family alone. The
first member to suspect the truth is young, Charlie,, a .condition
which almost ends in her death. The building up of the plot in

making.. If the news is not
Current
indications
are
that
bad' and the public^ continues ithere will be at least two groups
lackadaisacal. you can forget bidding for the */ $52,000,000 of
the market.

It won't do any¬ ■thirty-year /first mortgage bonds
and
$8,000,000 of nine-year de¬

bulletin to the group advising ontax

in the closing

moves

and

1942

days of
"Republic

that

added

has

just put into practice what
preaching here. As a re¬
over a dollar per
outstanding share may be.taken/
during the next five years with-/
out subjecting
the company to;

are

sult, profits of

federal income taxes

1 ittle booklet that

them."

;

"sparkles i

of its simplicity,"

,by virtue

Na-,

careful steps, serves to heighten the suspense,'particularly
discusses selected discount bonds •
with, the audience kept in ignorance almost to the end, of who the thing. , If the news turns bad bentures
when
those
securities
for income,
The advantages. of>
mysterious callers are, and what and who is Uncle Charlie. Result —and. here the home- front are
put up under competitive bid¬
is ah accumulation of tense scenes which become almost unbear¬
National
Bond Series; > and ;Na^.
* -,
comes
into
*
play — and the ding.
able in their throat-choking intensity.
tional
Low-Priced
Bond
Series
But if the' undertones are
It now looks as though the
market starts flirting with
sinister and handled skillfully, the lighter overtones dealing with
are set forth briefly.
,
sale will be consummated early
>|!
the life and interests of the small town family are equally as good.
«
#
110 then you can expect a 10
slow,

tional Securities & Research Corp..

In fact

of the scenes are first-rate comedy.

some

"Commandos

Strike

At Dawn"

point decline to about 100. To

guard against the latter ; all
a
story rich with possibilities. Unfortunately they' never develop.'
The plot, based on a magazine story by C. S. Forrester, tells "of a stops, in stocks* recommended
Norwegian village
to

before and after the Nazi new-order*. It tries
villagers under the leadership of Paul

the oppressed

how

show

widower with a small daughter,* form

something

unless

month,

stars Paul Muni in

(Columbia)

unforeseen develops to occasion

j. delay.

banking
group
f which has looked over the sit¬
One

uation for

here must therefore still ap¬

some

months, will be

"Selections"

with

the

closed

year

bulletin in which the

type;

set in the shape of a
Christmas tree. The comment ,was:

matter

was

general and closed on this opti- '
mistic note: ."This year's tree is1
heavily ,laden with many worth-'
the
first
all
commitments j second group will be headed by
while gifts, among which is the
Stone & Webster and Blodget.
should be retained.
growing recognition of the im¬
* *
#
*
1; There is said also to be a pos¬ portance of this /country's great;
sibility that a third aggregation
industries/and .of the essential - ;
More next Thursday.
may be in the market at least for nature of the contribution of those
a part of the undertaking.
thrifty
citizens
whose
savings—^Walter Whyte

ply.;

headed by IlaJsey, Stuart &

And to prevent missing

Lehman

and

Brothers,

Co.

while

a fifth column to
After killing a Nazi official, Muni
and a group of villagers escape to England and bring back . British
Commandos to destroy a hidden airfield..
At this point fact de¬
parts and fancy takes over. For while the battle scenes seem realistic
the raid itself is pure Hollywood.. The raiding party stealthily sails
into an unwatched fjiord under the command Of ho less than an
Admiral. Arriving undetected, the Commandos announce themselves
have made those industries pos¬
Revenue Bonds Vs. OPA
[The views expressed in thU
sible."
"
by the beating of drums and the wailing.of bagpipes/ The stupid
Revenue bonds, such as those
Nazis, deaf as well as blind, fall a comparatively easy, pr.ey to .the irticle do not necessarily at any
backed by the facilities operated
Commandos. But, having succeeded in their raid, the Commandos,
I Distributors Group has recentlytime coincide with those of ithf
by the Port of New York Au¬
as if to show their contempt, turn from their now destroyed objec¬
Chronicle. They are presented at thority, and they are ; numerous issued sales' folders ~on the Avia¬
tive to the village, for the expressed purpose of rescuing Muni's
throughout the eastern section of tion Shares--and -the Petroleum
small daughter, held there as hostage. Paul Muni, Sir Cedric Hard-' thosM of the author only.)
;the country, are viewed as facing, Shares of
Group Securities. The;
wicke, Anna Lee and even Lillian Gish, star Of the 'old* silents, con¬
a long lean stretch from a stand¬
tribute their talents. But they add little to an average melodrama
former is a revision of the popu¬
point of revenues produced.7
which suffers from bad writing and careless .direction..
,
.
/
lar and graphic story headed, "Is
i
?
A saving feature in the situa|"Tennessee Johnson" (MGM) with Van ffeflin,: Lionel Barry- The

Muni, a

sabotage and harry the Nazis.

|4:

Penthouse Club

m'Ore, Ruth Hussey and others, in
turn
or

out

one

of the surprises

usual "publicity,

the

Metro

with the life of Andrew

picture, which will probably

of the

comes

year,

with

has

escapes

ness

for

taken
him

the

comes a
of
it

the

from a -life as tailor's apprentice and sets up in* busi¬

himself
hand

small

Tennessee

village.

Marrying her, she helps him in politics.

teaches
He be¬

sheriff, Governor, Senator and finally the Vice-President
States.

As, a story of

gripping recital.

politics during Lincoln's day,

motion picture it is thoroughly

administration, it will hold

most

*•

your

unique

•

interest all the

way.

permitted

location, overlooking

Central Park

Serving
prepared„

best

fact

that.

recent years

the building

reserves

the north.

;■

food,

skilfully

Entertainment after 11 P. M.

ops

that

ithe

way

such

j
j

virtual

receipts of the
virtually

And that

ban

all

was

latter

outline

"What

the

Offers the In¬

Today."

halved

week

ago.

before the
ve¬

little more

Dividends

Tribor-

"A", card

hicles put into effect a
than

The

Petroleum Industry
vestor

Manhattan
nary

comparison with the same month ing
■

of the;

bearing

have been, cut," it devel-.

were

1941.

and

well;

cover.

prepared

many

Motors'

Industry?"

picture of a 1909 "jallopy" on:

the

ough Bridge Authority in Decem¬
ber

'General

Aviation

the

revenues

pro j ects.

Telephone PLaza 3-6918

sample

which

There

by sponsors

of such undertakings.
As

beautiful

the

over

restaurant tn,

en¬

As a dramatization of the politics which almost wrecked

the Lincoln

♦

An illiterate, he is

by the village librarian, Ruth Hussey, who

ABC's,

United

joyable.

has

found

of sizeable

who

heavy travel

not taken liberties with

tli|* truth. In simple fashion-it describes the boy Andy Johnson,

tion

Adjoining Tlie Plaza

Without fanflare

Johnson and his times/in thoroughly adult

biographical sketch it

movie that deals
-

fashion,

CENTRAL PAHK SOUTH

Fund—Ordi¬

Bond

distribution No. 18 amount¬
to

$0.10

per

and

an.

distribution-

extra-ordinary

amounting to $0.03 per share pay-:
able

Jan.

record

15
of

Jan.

stockholders' of/

1943.

I'J' /

J ''

{

,*)l/

Volume -157

'il

*•.

Our
.

(Continued from first page)

And

;;

ferred

directly to

its

April is far enough way to justify the buying that is now

going on'in the Gpvernment mart.

sales

MARKET

$2,592,421
$6,406,663
in

Prof¬

reserves.

securities

were

INSIDE''-THE'

New Patterns In

(Continued from page 187)

1""

1942

compared with

1941,.
reflecting
beginning to fret about advance fear it can't last and., largely the change in the condi¬
tion of the Government security
don't want to see any serious setback.
.
.
Trading yolume^is go¬
market.
ing along at a fine pace.
,
Some speculation in l%s reported.
.
.

Dealers

"When

interest

marked

one

couple

11/32

get

can

you

1%%
booming market," re¬

weeks, you're in a
professional.
;
And that sentence is worth study¬
therein lies'the story, of what has been happening re¬

ing, for
cently. '

Some

/...

•

comment of the President in
budget message but general feeling is this Congress will be
even
less disposed than the; last to eliminate tax exemption fea¬
tures on municipals.: .♦
If anything is done, it will apply to
future, not present issues, it is said,
As for Governments,
the message held no unexpected items.
.
' :
his

there

$1.95

...

reserves

$12,102,356

share..

per

dends of

From this divi¬

$6,200,000,. at,the annual

$1
$5,902,356

share,

paid, and

were

reaction

attributed

fact

It's a long time since we've had premiums on new issuespremiums worth talking about, anyway.
.
.
>' '
.

•

over

period

penny-wise-pound-foolish
Government financing goes.
.
And the

philosophy

it's

but

years,

as far as
.
Treasury finally seems to have adapted itself to that idea.
.

♦

Possibility that issue
Could be done easily.

793,450."

....

.■

Yield

•

;

to / the

!As

bank's

domestic

branches Mr.- Rentschler said:
"The Bank is

branches

operating 66

now

Greater

New

///"

Story from informed
continuing Victory Fund
basis.' ".'"'/.

is decision.has been reached on Office, with accounts of smaller
Committee salesmen on a non-payment average size. They are neighbor¬
-V; '•/•■ /
V:/' ///./;'/' hood institutions designed to meet

sources

/ ••/■ Even Victory Fund Committee
selves admit

difficulties

and

managers,

salesmen

them¬

determining payment basis are terrific
impression on buyers would be unfavorable..
One fear
expressed by, high officials is that payment of salesmen "would
bring back the undesirable 10%. fringe and .spoil a lot-of good-will
we have built up."
.
Also payment would kill voluntary efforts,
would involve delicate job of distributing customers.
Canada's
and

the

varied

needs

local

busi¬

and

individuals, with the
advantage of their call upon

nesses

added

*;•"

/■.

■

/ V- /

-THE- NEXT LOAN

■

...

record considered of little value because of great

there.

differences in setup

V y//

Beyond question, the Victory Fund Committee setup has been
a success and will be continued.
Beyond doubt; the
success of the December
drive must be attributed in large part to
the masterful way in which the distribution was handled.
The
Treasury knows that fact and so do the men who carried on the
operation.!
But there will be; changes when the next one comes
...

;

along;.

Officeand

the foreign

tations.

Some of the big buyers

...

the repetition of solici¬

and-

-"Our

branches

two

tween groups was fine but the duplication

of sales efforts must

eliminated if subscribers

the salesmen.
will be

arranged

day for the announcement.

are

operating under war-time conditiohs

continued

stations in

our

Karl

Lists will be

And this time there will be

managers can

achieve that goal..

out eagerly because they had the cash stored up.
Treasury didn't have to convince the insurance com¬
panies and banks of the East that the 2Yzs and l%s and the certifi¬
cates were good buys.
.
Those investors knew as much about
the offering as the committee members and were all set.
Simi.

came

larly, solicitations of the big corporations

"cream was being skimmed off."
But

were

because

easy

' /

professional.

mittees will have to work down to
means

the

"middle

the

means

groups."

com-

that the institutions of the mid-West and West will have

through in larger numbers and

come

Some

ment

talk

this

customers

greater scale.

sion,,

and often bitter

that the

unnecessary

competition between these two groups may be elimi¬

...

As for advertising,

that's another ticklish one.
the advertising .situation was handled in December

The way
may be all right
for one campaign but chances are it won't be continued.
The
Treasury may have to contribute more next time if it's to get all-out
cooperation.
.

have

The

current

situation

Sea¬

board Air Line

Railway Company
offers interesting potentialities
a

ing to

favorable outlook, accord¬
a

circular just issued by

H. Rothchild & Co., 11 Wall
Street, New York City. Copies of
the circular containing details on

Seaboard

Air-Line

and

the

seventy-five

been

invited

Sav¬
many

Future

the

Exchange

pany." / /
Willard

Thorp,

"The

Investment

Com¬

eral and adjutant general of New

the

registration

drafted

poration, will speak
tern of American

Cor¬

"The Pat¬

Industry and the
co-author,
on

Stockholders'^ Revolution."

A. Wilfred

May, Director, Divi¬
sion of Research and
Statistics,
Treasury
War
Savings;
Staff,
N. Y., will speak on
"Implications
of the War Bond
Program," also
Rudolph L. Weissmann will speak
on

"Inflation—Again?"

/;•

;

—

——

the

some

of the instructors

Institute

chapters
who
Law, Appraisal,
Accounting, Savings and Loan
Principles,
Business
Law
and
other pertinent subjects as well
as
the savings and loan people
teach Real Estate

who

Rawson & Withrow

The

law

firm

direct the

various

branches

of the school.

time

Donovan,

that David R. Rawson and James
R.

Withrow,

Jr.,

have

partners of the firm

become

of Jan. 1,

1943.

William J.

Donovan

is counsel

substitute

for

the

war¬

annual

five hundred senior and

executives of savings and

stitutions.

junior

loan in¬

six

distribution
rectors

months

declared

was

the

18th

earnings

Hinsdale

di¬

Federal

distribution- amounts

$36,000 and goes to approxi¬
mately 2,000 individual, corporate

over

and trustee account holders in 25

States,

mostly

and

est

suburban

west

least

that

the

Chicago

area.

savings is the great¬
of

withdrawals

the

history of the asso¬
ciation, according to the directors'

report. '

•/;

■

- -/v,—

;

J. K. Blackman, Jr., Vice-Presi¬

dent

million

the

three

dollar

commented

and

local

this

quarter

association,
trend:

"Pa¬

triotism and rationing combine to
encourage saving.
Accounts here
help to channel funds to the
Treasury and to preserve the na¬
tional economy.
Payroll savings,
bond purchases, and savings, will
prevent ruinous inflation and will
stand owners in good stead when
war

ends."

SEC Adopts Rule On

Registration Withdrawal
Of Investment Advisers
The

Securities

and

Exchange

Commission announced
the adoption of a rule
Investment Advisers

Jan.

under the

Acjt of 1940

designed to clarify and to make
specific the procedure for
withdrawal from registration by
more

investment adviser.

The Com¬

mission's announcement states:4

rule, designated as
Rule R-203-3, provides that a no¬
new

tice of withdrawal from registra¬
tion
as
an
investment
adviser
under Section 203

(g) of the In¬

narily take effect on the 30th day
after its filing with the Commis¬
sion.

Prior to the effective date

Investment Fund, Inc., will leave

withdrawal, however, the Com¬
mission may institute a revoca¬
tion
or
suspension
proceeding
against the
investment
adviser
who filed such a notice, or a pro¬
ceeding to impose terms and con¬
ditions upon withdrawal, in which

for

event the notice to withdraw shall

Joins WAVES
Miss Anne

Gould, Assistant

Secretary of the Mutual Manage¬

Company and of the Mutual

training

1943.

four

consecutive

Earnings

ILL.—The

vestment Advisers Act shall ordi¬

stitute

Distributes
HINSDALE,

;

ing, Jr., David Teitelbaum, Fran¬
cis A. Brick, Jr., Granville Whit¬
tlesey, Jr., and Carbery O'Shea.

date

usually attended

Hinsdale Federal

Thomas J. McFadden, O. C. Doer-

ment

meeting will be the

August,

1919, and became brigadier gen¬
eral/retired, on June 21, 1930.

"The

George S. Leisure, Carl Eldridge Newton, J. Edward Lum¬
bard,
Jr.,
Ralston
R.
Irvine,

mid-winter conference of the In¬

are:

to include

status of retired officer in

Law Firm Admits

which

Kansas City, Mo., Presi¬
gathering to discuss
the education of savings and loan
personnel in wartime is expected

deaux, France/and returned to the

the

meeting in Chicago, Feb¬
22, according to Edward J.
This

named

sion in

firm, the other partners of

dent.

selection

was

manded

,...

to the

Webb,

and

men.

brigadier general in the National
Army. on. July 25, 1917, com¬

The flow of

Co-Trustee,

and Electric

the

She

the

Smith

Mass.

Officer-Candi¬

WAVES
will

re¬

capitalization plan offered by the
Receivers may be had from the
firm upon request.

and

at¬

The

Seaboard Outlook Good

chapters of the American
ings and Loan Institute in as

ruary

Also considerable discussion of the advisability of combing the

nated.

Inst. Heads To Meei
Officers

tend

Securities

Commission, will speak

Leisure, Newton & Lumbard, with
offices at 2 Wall Street, New York
City, and Bo wen Building, Wash¬
ington, D. C„ have announced

American Savs.loan

•

Victory Fund and War Savings structures

Sept. 1, 191-3 with the rank of
major. He became brigadier-gen¬

Dec.

Heller,
Assistant
Di
rector, Corporation Finance Divi

/:/ f

;/:/

ness." /

cities

separating the bank financing part of the deal

;

Harry

agencies, and to local busi¬

from the rest in order to simplify the setup and permit greater con¬
centration on individual and corporate subscribers. . . ,
;

with

from a year ago at 35,
comprehensive, branch

business

;

branches in opera¬
America
is
un¬

country, to United States Govern¬

selling will have to be
i

relationships

organization places us- in a posi¬
tion to perform a useful service to

the

April, much of this money won't be available for the
simple reason that it is in Government bonds now.
.That means

our

Bopp,

Federal Reserve Bank

Contribute?"

The

this

and

our

Another angle to be considered is that from now on, the sales¬
will have to dig-down to lower levels, . y. v In December, the

big buyers

■*.

the

Latin

changed
,

,..

Canal Commission arid
the Mexican border; he retired

Philadelphia, will speak on "What Savings and Loan Association on
all sayings share accounts.
Can Monetary
The
Statesmanship

"The

been active and has expanded

•-.

Accounting
/
/
;
Research Di

:•v// "Security
Analysis,"; will speak
has

business

ser¬

Philippines, with the

Isthmian

on "'The War

important Post War
Economy."
foreign branch sys¬ /;
Benjamin- Graham,
.

Impact'

"Latin-American

tion

this time the competition

orderly basis.
.

tem.

number of

kept in good humor, say

April, will be distributed long before the

crossing of wires—if the

men

to be

So the chances

worked out long before

•

are

London

saw

Werntz, Chief Ac¬

/ Associated Gas

be¬
tween
this
country and
South
America have grown closer.
The

The competition be¬

Its

rector,

//"/

Cohen, Assistant Di¬

Practices."

opening of the year 1942, our
remaining branch in Japan,
China, and the one in the
Philippines were in the hands of
the Japanese."
He further said:

,:tjhe

served

countant, Securities and Exchange

four in

volume

deluged by salesmen.

were

Calls poured in again and again.

...

Commis¬

Division, will speak

branches.

was

Finance

William W.

year
especially they have
proved effective agencies for the
sale of U. S. War Bonds."
Mr.

O'Brierij

Barber

vice in the
on

Consumers; and the Public Util¬
ity Holding Company Act."

This

One bad feature of the last deal

Public Utilities Division,
Securities and Exchange Commis¬
sion, will speak on "Investors,

the resources and services of Head

Already, the experts are discussing revisions to be made,
working on the spring deal.
'j .. The Victory Fund Committee
structure is going to be permanent and so the committees may go
ahead with plans in confidence.
yy,y
y ;.y
i.
.

■

rector,

one

Milton H.

the

;///■////

proved

will speak on "Yardsticks of Pub¬
lic Ownership.".
-/:

Rentschler also reported that "at

//;

■

General

Spanish-American War,

...

ment dealers in New York/.

Business," He

the Twenty-ninth Divi¬
July and August, 1917, an^
then was placed in charge of
th^
tional Finance." :
<
Fifty-seventh Infantry
Brigade,
\ Maurice | P.;
Davidson, Trustee, serving
overseas/] He was chief of
Power Authority of New
York, staff of Base Section 2 at Bor¬

York.

W. Barber, & Son, Inc„ New York

sioner, Securities and/ Exchange
Jersey in 1916 and was in charge
Commission, will speak on "The of
organizating Jersey troops and

•

years.

on
maturing %s is 31%.
All c.is are at premiums. Deposits at these branches showed
Issues maturing in February and May are smallest on list,, a substantial increase in the course
$1,588,000,000 total of % comparing with $3,795,000,000 of 7/&s of of the year.
The branches have
December outstanding.
:
///■':■•:. // //;: many more depositors than Head

;

Robert

mature within five

and194%/within ten

years

"Forecasting Post

War Economics and

Role

Government

;

talk

the War and
securities,
Post War Worlds: V./,
:
31, 1941 stood at $1,Max Winkler, Bernard- .Winkler
183,000,000 and on Dec. 31, 1942
amounted to $2,029,000,000, a rise & Company, and Associate Pro¬
fessor or
of $846,000,000.
Economics, College of the
He added that of
the holdings of obligations of U, S. City of -New York, will speak on
/'The Next Chapter in Interna¬
Government
and
Government

U,< S.

;

General Barber until about six
months ago was head of, Charles

Alvin

Other speakers arid their
topics
include the following:

profits at $23,-

Russell G. Barber, after

son

illness of five months.

investment firm, and was until
Johnson, > Director of the New lis death a
Vice-President; of
School;' will lead • off the' series Schluter &
Company, Inc., invest¬
with

The

be increased by $1,-

may

Dr.

icy anq the War."

000 and undivided

agencies 73%

Popularity of the certificates of indebtedness suggests Morgen¬
.

Commission.

who will speak on the "Tax Pol¬

$77,500,000, surplus at $77,500,-

thau would be, wise if he built up the new issue due to refund the

February %s.
000,000,000.

Tie staff of the Securities and E*-

change

of his

1 rig the October deal is dramatic, indicative of just how closely
Secretary Morgenthau came to a really bad failure last fall.
-v:
"Cutting corners" may save us a million or so in interest

Social Research

which at Dec.

Contrast between price moves now and price moves follow<

for

./'At the year-end, capital stood

noted, is the increase in holdings

market

successful

School

beginning,; Friday evening,;: Jan.
15, under the chairmanship of Ru¬
dolph L, Weissmann, member of

ily.

for

New

Brigadier General Charles Wiliam

Barber, U.' S. A., retired,
by. the< died at the Charlotte, Ni C.; home

will be

Undi¬

that premiums appeared immediately and have been added to stead¬

credit

"New Patterns in Business and
Finance" is the title of a new 12weeks' course announced

vided Profits.

carried

was

principal change in the em¬
ployment of funds, Mr. Rentschler

Much

Brig.-Gen, Barker Dies

followed by Leo Cherne,
Research
Institute
of
America,

remained

rate of

tax-exempt

about

worry

"After, all transfers to

tc.

Business & Finance Was Inv. Co. Head

five-year bond parrying

r-»

189

n", '■<[■ 1

■■■'

Changes Wili Continue

as far as the
big operation is concerned, April seems to
logical month for that.
'

But
be the

Rentschler Says War

Reporter On "Governments"
.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4142

Women's

16,

into training

Naval

College,

Jan.

Reserve,

Northampton,

become effective

mission
such

date

only if the Com¬

determines
and

and conditions

upon
as

and

such

upon

terms

the Commission

finds necessary in the public in¬

terest."

Calendar of New
OF THE DOMINION OF

GOVERNMENT
CANADA

of Canada
has filed a registration statement with the
SEC
for $90,000,000 of
bonds, consisting
of
$30,000,000 5-year 2Vz %
bonds, due
Jan. 15, 1948; $30,000,000 10-year 3% bonds,
due Jan, 15, 1953, and $30,000,000 15-year
3 %
bonds, due Jan. 15, 1958.
All bonds
are dated Jan. 15, 1943.
Offering—The offering price to the pub¬
lic
will be supplied by amendment,
The
underwriters propose to offer the $90,000,000 face amount of bonds in part directly
to the public at the public offering prices
the

public
less

interest

accrued

which

amount

the balance to
offering price and
a", concession
the

and

interest

accrued

dealers

will

supplied

proceeds

received

Government from the sale of-the
bonds, together with funds from the Treas¬
ury, are to be applied to the redemption
of
$100,000,000 face amount of the Do¬
minion's 30-year 5 % bonds dated May 1,
1922, due May 1, 1952.
These bonds will
be
called
for
redemption
on
or
about
the

1943,

15,

principal

the

amount

thereof

together with accrued interest to
of redemption.
Such accrued inter¬

date

will

est

funds held by the
Treasury of the Dominion.
In
the prospectus all amounts are ex¬
pressed in Canadian dollars unless other¬
wise
specified,
conversion
of
pounds
sterling

paid

rate

lars

and

obligations of the
Dominion of Canada,

the

real

New

of the Bank of Mont¬
in such coin or cur¬

agency

York,

of the United States as at the time

rency

payment is legal

private
terest

these

for

imposed by

will

bonds

all

bonds

are

beneficially

free

and
in¬

and

from

present and future taxes

coupons,

Dominion

The

principal

owned

ordinarily

resident

re¬

the

Canada.

bonds

not

are

secured

and

amortization

retirement

thereof.

will make application

minion

Do¬

to list bonds

New York-Stock Exchange.
Underwriters—The names of the
the

■■

■

Ripley & Co., Inc., $1,200,000;

Hall & Co.

Loeb

Kuhn,
Bissell

Co., $1,400,000; Laird,
$50,000; W. C, Langley

Meeds,

$125,000;. - Lazard Freres & Co.,
Lee Higginson Corp.; $500,000;
Carl
M.
Loeb, Rhoades &
Co., $75,000;
Mackubin, Legg & Co., $35,000; Laurence
M. Marks & Co,, $150,000; Mason-IIagan,
Inc., $35,000; A. E. Masten & Co.. $50,000;
&

Co.,

$500,000;

McDonald-Coolidge
Leod,

Co.,

Mc-

Inc.,

Weir,

Young,

$100,000;

$400,000;

Corp., $800,000; Mer¬
Lynch,, Pierce, Fenner & Beane, $250,000; Merrill, Turben & Co.* $50,000; Mil¬
waukee
Co.,
$50,000; Moore, Leonard &
rill

Lynch, $75,000; F. S. Moseley & Co., $300,-'

Maynard

000;

Murch

Newbold's Son

Co.,

& Co.,

$35,000;

$75,000; New¬

CO., $50,000; Ohio Co., $50,Webber, Jackson & Curtis,

Abbe &
Paine,

Parrish & Co.; $35,000; Arthur
Perry & Co., Inc., $75,000; Phelps, Fenn &
Co., $100,000; Piper, Jaffray & Hopwood,
$35,000.
$300,000;

Pressprich

nam

000;

Co.,

Put¬

$125,000; E. H. Rollins
L. F. Rothschild &

Co.,

$300,000;

Inc.,

Salomon

$150,000;

Co.,

$175,000;

Co.,

$50,000; Reynolds & Co., $75,-

Riter

Sons,

Bros.

Hutzler,

$300,000; Gordon Saunder Co., $100,000;
Schoellkopf, Hutton & Pomeroy, Inc., $100,-

each

000;

the

three issues,

are

follows:

Schwahacher & Co., $50,000; Scott &

Morgan, Stanley A Co., $1,675,000; A. C.
Allyn
&
Co.,
Inc.,
$150,000;
Almstedt

Stringfellow, $50,000; Chas. W. Scranton &

Brothers, $35,000; A. E. Ames & Co., Inc.,
$900,000; F. B. Ashplant & Co., $250,000;
Auchincloss, Parker & Redpath, $50,000;
Bacon, Whipple & Co., $125,000; Baker,
Watts & Co., $75,000;
Baker, Weeks &
Harden,
$50,000;» Bear,
Stearns
&
Co.,

ger,

$50,000;

A. G. Becker & Co., Inc., $158,Biddle, Whelen & Co., $35,000; Blair
&
Co., Inc., $200,000;
Blair, Bonner &
Co., $125,000; Blyth & Co., Inc., $900,000;
Bodell & Co., Inc., $50,000; Boettcher &
Co., $35,000; Bosworth, Chanute, Loughridge & Co., $35,000; Alex. Brown & Sons,

000;

$150,000;

Potter «fc Co., $35,000;
Sherrerd, $35,000; Central Re¬
(Inc.), $150,000; E. W. Clark &
Co.,. $125,000;, Clark, Dodge & Co., $300,000,- Coffin & Burr, Inc., $125,000; Curtiss,
Butcher

Burns,

public Co.

House

$35,000;
R.

Co.,
Paul

Day

Smith,

$35,000;
H*.

Davis

Co.,

Dain

M,
&

Co.,

$35,000;
Dick-Merle-

Co.,

$75,000;

will

Shields & Co., $250,000; Sin¬
$75,000.
Smith, Barney & Co., $1,200,000; Stark¬

Co., $50,000;

Deane & Scribner,

weather

Stein

$100,000;

Co.,

Bros

$75,000; Stone
Blodgefc,
Inc., $300,000;
Stroud & Co., Inc.* $50,000; Swiss American
Corp., $75,000; Spencer Trask & Co., $200,000; Tucker, Anthony & Co., $250,000.
Union Securities Corp., $500,000; G. H,
Walker <fc Co., $100,000; Watling, Lerchen
&
Co., $35,000; Weeden & Co., $35,000;
Wells-Dickey
Co., $100,000;
Wertheim &
Co., $100,000; White, Weld &; Co., $500,000;
Whiting, Weeks & Stubbs, Inc.,; $125,000;
Wisconsin
Co., $300,000; Dean Witter &
Co., $200,000; Wood, Gundy & Co., Inc.?
$900,000; Wood, Struthers & Co., $250,000;
Yarnall & Co., $35,000.
Registration Statement No. 2-5081. Form
Maynard

Stillman,

schedule

$125,000.

(1-4-43)

Offered

Co.,

and

Webster

Jan.

14,

offered

rule 930(b).
Offerings will rarely be made before the day followper

ing.
Proceeds—Net

Puget
filed

SEC

for

series

Sound

due

Dec.

Light

Co.

1972,

hae

with

statement

$52,000,000 first

debentures
rates

Power

registration

the

bonds

mortgage
and

$8,000,000

quired

statement shall cover, such
of any, as may be re¬
issuance upon exercise of the

for

rights.

tables.

major portion of its frozen
quick-frozen by the Birdseye
the company has developed
and uses other processes for quick-freez¬
ing for customers Who require large pack¬
ages of frozen vegetables or loose frozen

the

stock

be furnished by

due

Dec. 1, 1951.
The interest
supplied by amendment.

will be

Address—860

Stuart

Building,

Seattle,

Wash.

Business—Applicant's
sist, generally speaking,
steam

erties

heat

and

located

portions

engaged

the

central

State

and

western

Washington.
It
in the business of
transmitting,, distributing and

principally

generating,
selling electric
19

properties
con¬
of electric, gas,
telephone utility prop¬

counties

energy

the

all

western

parts

and

central

portions of the State of Washington, com¬
prising approximately 4,500 square miles.

Underwriting—Names
of
underwriters
be supplied by post-effective amend¬

will

ment.

the

The

bonds

bidding.
vide

shall
be

company

and

The

that

proposes

debentures

invitation

each

specify the

bid

sell

both

competitive
for bids will pro¬

covering

coupon

rate

the
(which

bonds
shall

series

amount of $36,039,500

102%,
old

new

the

.face;

at 10iy2%, or $36,-

redemption
of
the
old
bonds,
in face amount of $8,850,000 at

580,093;
series

the

$9,027,000,

bonds,

series

and

redemption

face

of
of

amount

$13,995,000 at 102%, or $14,274,900, or
grand total of $59,881,993. There is pend¬
before the SEC an application under
11(e) of the Public Utility Hold¬

ing

Section

Company

ing

Public

Act

Service

1935,

Co.—parent

Engineers

company—to

which

Puget joined as a party, for the
of a plan
for recapitalization
This plan, if approved, would
reduce the percentage of voting power of
Puget owned by Engineers from
77.4%
to 1.8%.
Engineers has been ordered by
the
Commission
to
dispose of its entire
interest in the company.
Engineers has
advised Puget that it intends to comply
approval

Puget.

with

this order

soon

can

principal
E.

and each bid covering the debentures shall

specify the coupon rate

(which shall be

"''multiple of ye %) and the price to be paid

Rollins

stock

common

balance

the

the company.

250,000

Offering—The offering price to the pub¬
will
be
supplied
by
post-effective

lic

amendment.

•

Dec.
mon

stock

sinking

1954,

stock,

with

and

fund

47,215

without

registered,

par

35,715

reg¬

for

$1,«

debentures

due

the

SEC

com¬

value.

will

the

is sold

Piatt

or ; $7.50
per I
representing- selling1

the

Frawley

as:a

retired

Interest of the late William H.

Clark

York

Ogden'C. Chase,

says

Edward

and

Smith

partner in David A. Noyes & Cp.,
Chicago, as of Dec. 31.

$506,250,

difference
Statement

are

in Reynolds & Co., New
City, ceased as of Dec. 18. Y

Patrick

Smith

retired

from

underwriters

principal

partnership in James F. Shea &
fined in the regulations of the Commission.
Co., New York City, on Jan. 1. »
The three are officers, directors and
Walter Maynard retired from
pro-1
meters of the company.
: *
: ' '
partnership in Shearson,. Hammill
Proceeds—Net proceeds will be'utilized
& Co., New York City, on Dec. 31.
for acquisition of properties and installa¬
under

common

the

Securities

Act

1933,

de¬

accrued

deben¬
by; amend¬
Inc.,

tion; of

stock'.

common

used

A-2.

and

to, discharge

and

added

are

the

(12-29-42)

New York Stock Exchange!

com¬

Weekly Firm Changes
v

": ':YY'Yl

•/ :YYy

PUBLICATIONS,

INC.

5%%

Dec.

1, 1957.

subordinated

debentures;
Fourth

Y;''',,;.'

Paul,., Minn.

Cohan will be considered

;v.

21.

each

first

the

of. its

amount

face

floor

3,825 outstanding shares

stock together with all
accruing thereon after
Under the plan of recapitali¬
zation, the holders of first, preferred may
deposit their exchange agreements prior
to March 15, 1943, or such later date, as
may
be determined by the corporation,
but not beyond May 15, 1943.
The plan
shall become effective automatically, when
rights

preferred

will

1, 1942.

holders

80%

amount

face

such

80%.

firm

into

has

into

entered

with Kalman & Co., Inc.,
Co. ahd Harold E. Wood &
as dealer-managers.
They, are

agreement

Wells-Dickey
Co.
to

act

their

use

efforts

best

for

period

Cleary, general partnen in Holsapple &
Co., New York,
City, became a special partner on*
Jan.

PINEIIURST, INC.

has filed

Inc.,

the

SEC

bonds
to

due

'•;

V y

■

1,
their

winter

1943,

May

exchange

opportunity
accrued

the

bonds,

Exchange

registered.

principal

fered/with
when

of¬

company

filed

May 1, 1943,. shall
but the company

due

agreements,

the

right in its discretion to de¬
operative prior to May 1,
1943, upon receipt of agreements which it
may deem acceptable to-it.
Company re*
clare

the

plan

not

plus

accrued

bonds

1942,

offered

be
as

may

the

there

portion of the
under
registration

such

interest,

accepted by; the

not be

old

May

31>

bonds

old

outstanding.

Underwriting—Company has not entered
any agreement providing a first com¬
for
the
purchase of the
first
mortgage
5%
bonds.
It
will,
however;
enter
into
an
agreement with Mackubin,
Legg & Co., Baltimore, Who may be un¬
derwriters whereby the - underwriters who
have aided in preparing the exchange of¬
into

mitment

fer

and

plan

will

use

their

best

efforts

obtaining agreements of exchange, in¬
cluding the obtaining of services of other
dealers, for which they will be compen¬
sated.

;

••

Proceeds—To
gage

redeem old

Registration Statement No. 2-5079. Form
(12-29-42)
v r

A-2.

WEDNESDAY,. JAN.

ful

.Herbert

;

Victoria S.

statement

With

common

has

SEC

filed

for

the

United States.
Ave.

and Fourth

St., Agua Prieta, Sonora, Mexico.
\
Business—Company was organized under
the
laws
of the
Republic of Mexico on
Oct. 23, 1942, for the purpose of engag¬

City,

ceased

on
SY-"

■

Privilege of Henry D. Talbot to
the floor of the

Exchange for Alan H. Kempner
of Byfield & Co.; New York
City,
withdrawn

was

Dec. 31.

Sweetser &

Co., New York City,
dissolved as of Dec. .31,- 1942.

was

Long
was

Co.,

dissolved

I Betsey

•

New

York

City,

of Dec. 31.

Gwathmey,

;

limited

•

partner in Merrill Lynch, Pierce,
Fenner & Beane, New York "City,
died

Dec. 20..

;

'Y.-

April 14, 1943; which were of¬
on Jan.- 8, were opened
at

fered
the

Federal

Jan.

11.

Reserve

Total

applied for, $1,228,004,000.
Total accepted, $601,142,000.
Range of accepted bids:.

.High, 99.930; equivalent Tate of
discount
approximately
0.277%

•„

Y" •Y:j;..V/,;;J;Y,

annum.

per

Low, 99.908; equivalent rate of
discount -approximately
0.368%
per annum.Y ••
•
-;
,

Johnson

limited

-•

price,: 99.908;

"Average

lent

mately 0.363%

partner in the firm effective Dec,
31 on which date Sully C. Pecot
retired from the firm.

rate

equiva¬
approxi¬

discount

per annum.

;

(39% of the amount bid for at
the

low

price

was

accepted.)

There

Laurance B. Beckwith withdrew

from partnership

ip Bell & Beck-"
Ohio, on Dec. 31,

Toledo,

V,
Details of the issue follow:'

New York City, became a general

with,

banks

;;''-Y

partner in Orvis Brothers & Co.,

ilar

was

bills

issue

amount of

maturity of

$400,438,000.'

sim¬

Jan.

With

1942.

respect to the previous
offering of 91-day bills,
dated Jan? 6 and maturing April

Combs,-member of
the Exchange, and Harry van de
Rovaart retired from partnership
in Combs, Maxwell & Potter on
Jan. 1, on which date privilege of

week's

Mr,

000.

Richard

van

ternate

de Rovaart to
on

act

the, floor * of

the

al¬

7, Secretary Morgenthau disclosed
these results
Total

Ex¬

drawn.

Combs, Maxwell & Pot¬

ter continues

as a

New York Stock

Richard B. W. Hall retired from

Y^rk City effective Dec. 31,
1942.
\
"
"
.

The interest of the Estate of Jay

partner, ir)
Carlisle & Jacquelin, New York
City, ceased on December-31.
.
Carlisle,

Herbert

from
Duff

limited

Fautz

withdrew

partnership in J.. RobinsonCo., New York City, eD

•

-J

•• •'

'""Y

;;

accepted bids (ex¬
tender of $4,000):

one

High—99.925; equivalent.rate of

Exchange member firm.;
partnership in M. D. Doyle & Co.,
New York City on Dec. 31, 1942.
Harry- E. Reis withdrew as a
partner in A. M. Kidder & Co.,

for—$ 1,242,588,-

accepted—$600,104,000.

Range

cepting

Jan. 4:

applied
.

Total

change for. Mr. Combs was with¬

1,-

stock and $675,-

production notes, the latter being law¬
money

Address—Pan-American

effec¬

partner

■YY;Y-;'. '■
R.

New

METALES DE LA VICTORIA S. A.
de la

limited

tive Jan. 1.

.,!!■'

first mort¬

bonds and for general funds.

York

act as alternate

general and limited part¬

bonds.

$236,000

were

became

the

right to offer for sale for cash
less
than
100% of face amount?

'.Y:;:;

i James
V.: Igoe, member of the
Exchange, general partner in Nun
gentIgoe, East Orange, N. J.,

if, prior to May ,1, 1943,
substantially all of the bonds

reserves

for

and

the

bonds

in cash for ac¬
The plan will become operi

holders

have

the

both

bonds now

adjustment

crued interest.
ative

basis

amount

ner''as of Dec. 31. Y Y"' Y;Y •-''"Y:.;YY:VYV.

plus

interest, for first mortgage 5%

31.

E. Merrill, member of
Exchange, a general partner
in Merrill Lynch, Pierce, Fenner
J
& Beane, New York City, became

resort.
Offering—Pinehurst, Inc.; is offering to
the holders of its ■6% .first mortgage gold
Business—Operation

New

the

$050,000 first
1953.
; /

bonds, due May .1,

Address—Pinehurst, N. C.

Co.,
Dec.

YCharles

a,Registratiori

for

Batcheller in Blair S. Williams &

to be dated Jan. 13 and to mature

Robert E.

with

Y,Y-y ;■
/-/yVY'Y^'YInterest of the late Franklin A.

McE.

effective Jan. L

Registration Statement No, 2-5080. Form
(12-29-42)
,

A-2.

Dec. 31.

Bache

following

days

•

floor

Cityr became a special part¬

Willard

late

Secretary of the Treasury MorWhitlock, general genthau announced on Jan. 11 that
partner in Farr & Co., New; York tenders for
$600,000,000, or there¬
City, became a special partner abouts, of 91-day Treasury bills,

the effective date of
the
registration
statement to effectuate
exchange of the securities registered for
the
corporation's outstanding
first pre¬
ferred stock.1
% ''
'*; 'yv;
Proceeds—Plan of recapitalization.
60

individual

H. Gordon and. Benja¬
McGuckin, both Exchange
members, and general partners in
DeCoppet & Doremus, New York
City, became special partners on
Jan. 1.YE, Vail Stebbins, member
of the Exchange and* a special
partner in the firm, retired from
partnership on Dec. 31.
•
YY

for the purchase of

debentures.

ordinated

Mr. Lenart

Jan, 21.

the

Innes
Getty
withdrew
from
partnership in A. O. Van Suetendael & Co., Yonkers, N. Y., on

Richard

agreement

any

commitment

-"'' ' :Y':

min F.

corporation has pot
providing a
sub¬

Underwriting—The
entered

effective Jan. 1.

ner

" ■"

•

act

York

first

their

deposit

broker.

Mr.

individual

brokerr it is understood. : Y->:
Barclay K; Douglas, Exchange
member, 'and> general partner in
Winslow, Douglas & McEvoy, New

exchange agree¬
ments, or by declaration by the corpora¬
tion,
at its option,
upon
receipt of ex¬
change
agreements
covering
less
than
preferred

as'

act

Jan.

that

understood

considered

dividends

is
will

Transfer of the Exchange mem¬
bership of the late Arthur H.
Spero to Harry Lenart will be

fori

$100

Cohan

Interest

•

Liti, limited partner,- in W. R. K.
Taylor -& Co., New York City,
ceased on Dec. 26. ^
I Y->

W. Gillette Bird to Emmanuel M. i

Business—Engaged in the publication of
newspapers in the
cities of St. Paul and
Duluth, Minn.
Y V •;
!'
Offering—Under the plan of recapitali¬
zation the corporation offers a 5V2%
de¬
benture

the

YY
St>

St.,';

announced

Exchange
following

Weekly firm changes:;.
Y// YY
The proposed transfer of the
Exchange membership of the late

due

■

...

East

Address—55-63

Y The New York Stock

has

Inc., has filed

Northwest Publications,
500

Smith, Barney & Co.,
City, as of Dec. 31. Mr.

Boston.

there¬

premium

Harcourt Amory withdrew as a

Amory made his headquarters in

due on a bank
$600,000, together

general

NORTHWEST

incident!

expenses

operation of the mine property.
/*
partner in
Registration Statement Nd. 2-5082. Form
S-3. (1-8-43)
■;
•' ;
'
:
' New York
,

funds. Y;yY ?■Y,Y
Registration Statement No. 2-5078. Form

pany's

other

and

the net pro¬

debentures

mill'

$480,000

interest

Balance

•

the

Sons,

the

amount

With
on.

are

the

loan

000

Packing Corp. has filed

statement

for the

the sale

from

ceeds

350,000 shares of

DEERFIELD PACKING CORP.
Deerfield

for

named

Proceeds—About $487,000 of

registration

SUNDAY, JAN. 17

istration

underwriter

named

Metales

multiple of V*% ) and the price to
paid to the company for the bonds;

Marshall K.

selling'

Assuming that
the proceeds to the;

missions^

amendment. 1

underwriter

others

with

ment.

so.

Registration Statement No. 2-5077. Form
A-2, (12-28-42).

latter

tures

holders

bonds,

and

debentures

will

the

company.

underwriting discounts and com-'

Francis

public

the

will

the

believed

price

the

costs and

Underwriting—E. H. Rollins & Sons, Inc.;

statement

old

proceeds

bonds

new

company

unit,

commodities.

•the entire issue

Offering—Offering

stein,
Charles
Riegelman
and
Guaranty Trust Co. of N. Y. as

value of one

par

Edna

ac-1

through

agents

but

process,

stock.

common

from

which date ceased the interest
A. Lilienthal, Leo Arn-

(Mexican

counts,

The

products

has

stock

common

■

money) per share.'
A
Trustees under the last will and
Underwriters—The offering will be made
direct to the public by the company, and
testament of Joseph L. Lilienthdl.
to brokers and dealers for their own

•

retired

partnership in Hirsch, Lilienthal
& Co., New York
City on Dec. 31,

therefrom.

concentrates

and

centavo

Address—Bridgeton, N. J.
Business—Company is engaged primarily
in the manufacture of quick-frozen vege¬

the

and

Offering—Offering price is $10 per unit,
lawful money of-the United States.. A unit
consists of a production note'in the face
amount of $10 lawful money of .the United
-■

shares',

conversion

from the sale
debentures,
together with general funds of the com¬
pany, are to be used for:
Redemption of
of

Ores

The.

serves

SATURDAY, JAN. 16

states

Company

that due

present

Pinehurst,

list of issues whose registration state*
ments were filed less than twenty days ago.
These issues
are
grouped according to the dates on which the registration statements will in normal course become effective, that
is twenty days after filing except in the case of the securities of certain foreign public authorities which normally
become effective in seven days.
These dates, unless otherwise specified, are as of 4:30

PUGET SOUND POWER & LIGHT CO.

exploring,
fective Dec; 31.
developing and operating mining properties,
Ernst Englander
Mexico, and the milling and marketing'

that

additional

1943.

sale.

for

possible

mortgage 5%

P.M. Eastern War Time

ing in the business of acquiring,
in

States

statement

Following is

exercise

upon

with respect; to the de¬
remaining 11,500 shares

to future ad¬
justments
in
the
conversion
price,
not
now
anticipated, more than 35,715 shares
will be required for issuance upon exercise
of
conversion rights,
and it is intended
that

Boyce, $50,000; Stern Bros. & Co., $75,000;
&

issuance

rights

and the

bentures,

Dec.

writers, with the principal amount under¬
written, the amount being the same for
of

conversion

registration statement with SEC for $382,-

Securities

Mellon

' for

reserved

Mc-

Master, Hutchinson & Co., $35,000.

under¬

Co.,

(Inc.), $250,000; Hawley,
Shepard
&
Co.,
$50,000;
Hayden,
Miller & Co., $125,000; Hayden, Stone &
Co.,
$200,000;
Hemphill, Noyes & Co.,
$300,000; J. J. B. Hilliard & Son, $50,000;
Hornblower & Weeks, $300,000; W. E. Hutton & Co.,
$300,000; Illinois Co. of Chi¬
cago,
$125,000; Janney & Co., $35,000?
Kalmoin & Co., Inc., $50,000; Kean, Taylor
& Co., $75,000; Kebbon, McCormick & Co.,
$75,000; A. M. Kidder & Co., $50,000; Kid¬
der, Peabody & Co., $800,000; KirkpatrickPettis Co., $35,000.
,

ton,

person

Hallgarten

Harriman

000;

any

Co.,

$175,000.. '

except when

Co.,
$500,000; Graham',
$125,000; Green, Ellis &

$50,000;

Anderson,

sinking fund is to be provided for the

Parsons

the case may be,

the Government,

the

siding

tender for public

The

debts.

deduction

"The Loan Act,

$1,400,000; First of
Folger, Nolan &

Corp.,

Corp., $100,000;

Sachs

man,

Principal and interest will be pay¬

able

The

direct

to be issued under

are

1942."

dol¬

Canadian.

equals $1

Government

Canadian

into

dollars

are

bonds

from

Canadian dollars being made
of one- pound equals $4.86%

into

the

at
and

Boston

First

Co., $50,000; Robert Garrett & Sons, $35,000; Glore, Forgan & Co., $300,000; Gold¬

Harris,

Proceeds—The

March

Corp.,

Michigan

amendment.

$900,000;
Drexel & Co.,
$500,000; Francis I. du Pont & Co., $50,Eastman,
Dillon
&
Co., $300,000;
000;
Elkins, Morris & Co., $50,000; Equitable
Securities Corp., $100,000; Estabrook & Co.,
$250,000;
Fahey,
Clark & Co.$35,0001
Farwell, Chapman & Co., $35,000; Ferris
& Hardgrove,
$35,000; Field, Richards &
Co., $35,000.
curities

Government of the Dominion

Thursday, January 14, 1943

Security Flotations;

Dillon, Read & Co;, $1,400,000; Dominick & Dominick, $300,000; Dominion Se¬

OFFERINGS

and

FINANCIAL CHRONICLE

THE COMMERCIAL &

190

discount

approx.

num.

0.297%'

Low—99.907%;
discount

equivalent rate
0.368% per
'
•

Average price—99.910;
of

rate

0.357%

approx.

annum,

lent

aii-

per

;•_:

....

per

discpunt

annum.'

equiva¬
approx.

(13% of the amount bid for at
the low price was accepted.)

There
lar

was a

issue

amount Of

maturity of

bills

$400,572,000.

Jan.

simi¬
6

Volums

157

Number 4142.

THE COMMERCIAL

HOW BID WE GET THIS WAY?

had

& FINANCIAL CHRONICLE

191

their fortunes
go to a State whose demands

seen

were

longer satisfied by ordinary taxation; the farms were
breaking up; the laborers were flocking to the cities; the
all men and not just one-third of them would be
ill-clad; standards of art and morals were
declining. Side by side
jili-nourished and ill-housed; is laughed off with the supreme with this
(Continued fromfirst page)

;;

MY Savs. Loan Ass'ns

Exceed War Bond Aim

Purchases of government bonds
picture of a society in its death throes was a
vulgar for their own investment
(confidence that, marks,< the valor of .ignorance. ^ .y
\.V : a V'/* display by. officialdom, vast
portfo¬
public doles and huge building lios by
[ : 1
savings and loan associa¬
Depression is no more fundamental to capitalism than enterprises which became
bigger and more pointless as the tions in New York State for the
•persecution is to a religion which teaches brotherly love. : Jn State became
period July 1 to Nov. 30, 1942,
poorer."
jboth the aberrations result from the; ferment of human
reached the total of
$12,679,450,
Now, as then, we are so familiar with the names of our exceeding by more than 50% the
(impulses, which are not; eliminated by a dominant govern¬ duties and
obligations that we neglect their performance State quota of $8,000,000 in the
ment, although the theory is a favorite with carbon-copy while
we insist
upon our rights.
We agree with truths we national campaign for $100,000,(mentalities who coquette and intrigue with collectivism and
000 for the last half of
daily violate; live a conventional lie; preach and
1942, the
promise State League of Savings and Loan
(become infatuated with 1 abjectivalsystems which-, they
economy and practice extravagance; create
Associations reports.
autocracy to
imagine are constructed with meticulous and mathematical
Thus, with
preserve freedom; pile
up debt to provide for the
precision:.',
v."
future; purchases for the month of De¬
V:'v.''' '• ■'
-Jcember still to be
practice greed under the guise of sacrifice and reward
reported, it is
false¬
That a system of undue
governmental interference in hood while we
expected that government bonds
penalize candor.
the lives of men is certain to be a
purchased for the six months pe¬
system of favoritism and
xThe really dangerous man is not the one
who believes riod will reach $15,000,000.
.injustice; a system of charity; tosome at the expense of
The
in violence as the means
to an end.
issued
Jan.
4
Violence invites and announcement
others; a system rooted in ignorance and incompetency with
added:
'•
can be overcome
its beneficiaries
by violence. He is the doctrinaire who en¬
becoming parasites upon the body politic, a
"Savings and loan associations
courages men to lay the blame for their mistakes
true case of parasitism, is
resolutely ignored in spite of the
upon the in this State have also been ex¬
shoulders of others.
Nations devastated
record which is
by wars and stran¬ ceptionally active in the sale to
relegated to the limbo of the forgotten be¬
their members and the
gled by tyrants can regain their freedom. Nations
cause it is
general
impossible to argue with facts which are obdurate
conquered public of war bonds and
other
by false doctrines and political blandishments
things, not altered by the alchemy of time or speech or the
disappear for¬ government securities.
Reports
ever.
Conquest by force is preferable to conquest
received from 143 associations in¬
technique of the microphone.j The future,.in its main out¬
by fraud
for the
dictatorship of force can be overcome much easier dicated total sales of nearly $30,-'
lines, is visible in the past, like an experience renewed when
^

than can the
dictatorship of illusion. The human mind be¬ 000,000, predominantly of the
It is a far better method of divi¬
Series "E" type.
The facilities of
ing what it is, the persuasive; is more powerful than
the the associations are being em¬
astrology, an ancient mode said to be currently
coercive.
•* •.
■
''
popular in some official quarters.
.;v ployed by 129 firms with 68.278
As a device for
Nations, civilizations and races do not advance to their employees to handle payroll de¬
improving society, government is no
it is viewed in

retrospect.

nation than

•

doom but retrograde to
it;

stronger than the composite intelligence of its agents, which
grows less as bureaus multiply until they exhaust the alpha¬
bet, and does not improve as it approaches the apex of
power.
The belief in its infallibility is nurtured by quib¬
bling rhetoricians and accepted by the mentally underprivi¬
leged:..,,
..:
When

design their

Their decadence follows the
acceptance of beliefs which
sult in a
dictatorship of the mediocre under the

corporative State finally becomes, directly
indirectly, the main employer, the bureaucracy becomes a

force to be

propitiated with obligatory genuflections due to
the insolent petits
fonctionnaries, the arrogant: dignitaries
-and the effete elite of a
parvenu aristocracy.
Subservience
becomes the first law of
survival; compliance a necessity and
sycophancy a fine art. Government is saturated with cant
and corruption and
degenerates into a patriciate of office¬
holders engaged in a constant
struggle for petty advantage
whije the-energies of the citizenry are corroded into futility.
The common phenomena of the
tendency of the minority to

distribution
We

would

ested

they

this

hear

want

'ease
pany

of them

arriving at its advertised destination. Fail¬
ure is
always their alter ego as they invariably substitute the
greater for the lesser evil.
;
any

ever

that

cover

some

decide

and

the

price

—

and

The

release

and

tion—a condition which is seldom

given adequate recogni¬

-autonomy something more than an intangible. .Other sys¬
tems are not new;
they are reversions, atavisms; relics which
are
found everywhere in the debris of "time.
They are
! neither
unique nor original; simply new deals with the same
old dirty decks.
They belong to the primitive and appeal
1
exclusively to those stagnant minded people who cannot
stand the strain of a
high degree of civilization; the barba-

i rians

within

who are affected
by a poignant, nostalgic
yearning for primeval squalor; to those who cannot endure
I the rigors of realism and to the
mentally impoverished,
j- The decay of a previous civilization and a great nation
•

has been described as.follows:
"

"Taxation

was
crushing; the tyranny of a swollen buunendurable; the naiddle: classes,.overloaded with
'•unpaid social services, were disintegrating; the upper classes

reaucracy

idea
to

the

will

the

quantity

feasibility
be

York

necessary

the

fact

that-less

Stock

members

the

New

Exchange, or below
the required two-thirds, had
par^
on

X-13A-8

X-13A-10

and

should
and

the

dated

the

recent

amendments to the

balloting
Exchange's

Constitution in the two-week vot¬

ing period, which ended Dec. 31,
the Stock Exchange on Jan. 4 ex¬
tended the balloting period an ad¬
ditional two weeks,
expiring

Rule

Act

above

Dec.

18,

adoption of

text

X-15D-5.
be

Rules
Rule

designated

Rule

X-15D-5

Garland

S.
Ferguson Jr.
of
North Carolina assumed on Jan. 1
the
chairmanship of the Federal
Trade Commission for the fourth

time. Mr. Ferguson, who has been
member of the FTC since
1927,

is one of the three
Democrats on
the five-man. Commission.
He has
been
a
member
of
the agency
longer than any other member
since its creation under
President

Wilson in 1915.
of

the

FTC

Denver Bond Club
Snapshots taken

(Jan. 14). -The proposed amend¬
ments relate to

ticle

Santa Glaus Visits

designated

X-15D-6.

(of their pretentions.

tion—is that it has made individualism
possible and personal

688

ticipated

Ferguson Heads FTC

under

Acts

contained

X-13A-8

.and

view

inter¬

Exchange

Securities

1942, announced

beyond which lie efficiency,1
obsequious nonentities for which it has a
(unique penchant, and who can demonstrate only the vacuum

Voting Time
Proposed Amendments

price

Dec. 29 the

No. 3988; Investment Com¬
Act of 1940, Release No. 417.

mentioned

should

Absolutism has its frontiers

nominal

who would be

,"i :V':'

impossible to

Its production is a plethora of rules
regulations, which are the co-efficients of its ineffici¬
ency.
The extension of bureaucratic control to the produc¬
tion and distribution of
goods is always fatal./The greater
the number of people supported
by a government,, the more
powerful becomes the force 6f inertia and ingrained habits
! of thought;.The belief in the
infallibility of government is
•as pernicious as
any other doctrine of infallibility.
The greatest achievement bf
capitalism, besides supporting a greatly increased and increasingly ungrateful popula¬

readers

with

putting al*
pamphlet form for

lots

our

may

available

consideration

quantity

together

1933, Release No. 2887; Securities
Exchange Act of 1934, Release No.
3347; Holding Company Act, Re-

Planned economy, under j
political supervision is'an eu¬
phemism for stratified chaos—for standardized error—as

possibility of a coherent plan when it can be
changed by official caprice. j These plans are always con¬
veniently evasive, replete with elisions, contradictory and
as full of
incongruities as a: surrealist picture. The label
always fails to describe the package. There is no case of

NYSE Extends
On

today

there is

one

SEC Rules Re-Designated

Correction

;

under

from any of

copies
so

giving

are

subscribers

our

obtaining

would

article

through these arrange¬
May
1,
1941,
is

$8,572,149."

making these reprints
to
charge.
r.

grades of subor¬

juridical system is impossible.

bonds sold

ments ;since

than

NOTE—We

rule

duction programs for the
purchase
of war
bonds.
The
amount
of

responsibility.

EDITOR'S
installments of
r

are accentuated even when
The
Securities
society is organized on an
equalitarian basis and when democracy is supposed to be the Commission issued
following:
fulcrum which moves it.
In a regimented
society the mem¬

dination and

re¬

theory thai
political might makes economic
right. There is no antidote
sufficiently potent to destroy the deleterious effect of
powei
upon character when there is no
way to apply the corrective

the

bers stand toward each other in successive

they do not die natural deaths but
cenotaphs and write their own
epitaphs

own

at the Christmas

of the Bond Club of Denver

Party

The

rotates

Section 13 of Ar¬

the

Constitution

re¬

lating to the continuance of a
partnership for a limited period
of time with the status of a
mem¬
ber firm after the death of the
sole

Exchange

and

member partner,
proposed amendment
to

sub-paragraph

(1) of Section 5,
Article XI, the purpose of which
is to describe more
accurately the
status of the estate of

partner
an

which

interest in

Approval
in

annually.

2241.

these

deceased
to

have

partnership.
by
the
Exchange's

Board of Governors

chairmanship

continues

columns

was

Dec.

reported

24,
■

■

page
V:-;

THE COMMERCIAL & FINANCIAL CHRONICLE

192

Morgan Stanley Groiip

TELETYPE—NL Y. 1-971

HAnover 2-0050

Bliss 5% &
Lionel

syndicate headed by Morgan
is of¬
fering today an issue of $90,000,Dominion of

000

Reliable Informal ion

Penn Central Airlines
Convertible Preferred

Utica & Mohawk Valley

dated Jan. 15, 1943,
$30,000,000 2V2S, due
15, 1948, and $60,000,000 3s,
which $30,000,000
mature in
bonds,

ing

and Internal Loans

;

Bought—Sold—Quoted

Mexican Interest Arrears Cfs.

Jan.

flARL MARKS & PP. INC.

1953 and

New York

50 Broad Si.

Mexican External

4/4/41

Canada refund¬

and including

The

Inc. Chicago, III.

Direct Wire to C. HI. & Co.

Corp.

Stanley & Co., New York,

FOREIGN SECURITIES
Firm .Markets

Atlas Corporation

6% Pfd.

Warrants

Offers Canada Issue
Specialists

Thursday, January 14, 1943

similar amount in 1958.

2V2S

and

100.50

Phone State 6693

M.S.WIEN&CO.

S. H. JUNGER Co.

priced at par and
the 10-year 3s at
interest, and the 15-

are

accrued interest,

Bought—Sold—Quoted

Inquiries invited

Phone

3s at 98.50 and interest. The
2V2S are callable at the Domin¬

Members N. Y. Security Dealers Ass'n

Exchange PL, New York

1-1779

Teletype N.

4-4832

DIgby

25 Broad

ion's option, in

Grainger Made V.-P. 01
Chemical Bank

The Business

Co.,

Man*s Bookshelf

Isaac

dent.

Saw It!—Scheuer & Co.,

the

Vice-Presi¬
Mr.
been President of

has

Montclair

Trust

Mont-

Co.,

J., and is Treasurer of
the Essex County Bankers' Asso¬
N. Y.—Excerpts from market let¬
ciation.
He has a wide acquaint¬
ters issued by the firm from 1939
ance in banking circles as he has
through May, 1942—Paper.
been active in the affairs of the
Leonard

Collapse
of

Boom

War?—Harold

the

Karl

and

Street,

Brookings

York,

New

—

The

Washing¬

Institution,

Farmers,

try,

Association.

Bankers

at the End
He started his banking career in
G. Moulton

ton, D. C.—Paper—250.
on

American

Schlotterbeck

Commentary

clair,

Indus¬

Labor,

A—Louis

Ruthen-

the old Murchison National Bank
of

Wilmington, N. C., of which
his
father, the late J. Victor
Grainger, was President for many
years, and later served as Exec¬
utive Vice-President of the North

Carolina

Bank

Legal

1947; the , 10-year 3s, only in
entirety, on 45 days' notice,
104, on or prior to Jan. 15, 1946,
thereafter to and including 1949
15,'

Grainger

Co.

Trust

1-1397

whole but not in

For the past nine years

Grainger
As We

the

HAnover 2-8780
Y.

their

City, announced
appointment of

York

New
Jan.

part, at par and accrued interest
on 30 days' notice or or after Jan.

Trust

Bank

Chemical

The

St., N.Y.

Teletype

year

William Perry Brown of New¬
Brown & Company, New Or¬

Oddities

man

103, and to and including 1951,
102, and thence to maturity at

all with accrued interest.

par,

The
as

leans, President of the National
Security Traders Association, has

15-year 3s

are

redeemable

any

104 until

1946, thereafter to Jan.
1949 at 103; then until Jan.
1952 at 102;; until Jan. 15,
1955, at 101, and thereafter to
maturity at par, also with accrued
15,
15,

interest

tion"

that

lucrative future

and

passed the tip on to his friend,
Roe, who bought Easycum stock on the strength of this

Richard

The

issue, together
with
$10,000,000
of
available
Treasury cash, will be used by
the Dominion government in the
redemption of $100,000,000 out¬
standing Dominion
5s of 1952
which, it is expected, will be
called for payment on or about
March 15, next, at par and ac¬

burg—Indiana State Chamber of Greensboro, N. C.
Commerce, Board of Trade Build¬
At the outbreak of World War
ing, Indianapolis, Ind.—Paper.
No. 1, Mr. Grainger left Princeton
University and joined the Army, crued interest.
The underwriting group, in ad¬
Impact of Federal Taxes, The— becoming a Captain of Infantry.
Roswell
Magill—Columbia Uni¬ Mr. Grainger is a member of the dition to Morgan Stanley & Co.,
New
York
State
Chamber
of also includes, among others, The
versity Press, Morningside
New
Jersey
State First Boston Corporation; Smith,
Heights, New York City—Cloth— Commerce,
Chamber of Commerce, Economic Barney & Co.; Harriman Ripley
$3.00.
Club of New York and of other & Co., Inc.; Wood, Gundy & Co.,
Inc.; Dominion Securities Corp.,
Medical
Services
in
Industry organizations.
and A. E. Ames & Co., Inc. A com¬
(A Selected, Annotated Biblioplete : list of the underwriters is
graph With Particular Reference

New

and

into a wailing
Corporation went

City

York

wall

crash

financial artery of

'29 turned the

of the

Corporation

Easy cum

in line for

recommendation.

in all instances.

Proceeds

"inside informa¬

John Doe had

.was

FRIEND

UNGRATEFUL

THE

whole, or in part, by lot at
time on 45 days'/ notice at

the

into bankruptcy

in good company.

six months after

Five years and

purchase of the stock Roe sued
Doe in the New York Courts (28Q

the

N.Y.S.

mis¬

fraudulent

for

512)

Ins. Stock Looks Good

in War In¬
dustries)— Industrial
Relations
Health

Programs

Section, Department of Economics
and
Social
Institutions, Prince¬
ton

University,

Princeton,

—100.

N. J.
:V!V

The

outlook

for

American

given

Fi¬

delity & Casualty Company is ex¬
tremely favorable at the present
time, according to an interesting
circular issued by Huff, Geyer &

Hecht, Inc., 67 Wall Street, New
York City.
Copies of this cir¬
tistical Abstracts (Statistical, Eco¬ cular with an analysis of the sit¬
nomic and Social Data for 175 uation in the Company for 1942
New England Cities and Towns) may be had from Huff, Geyer &
—Bureau of
Business
Research, Hecht upon request.
Boston
University
College
of
Business
Administration, 685
New

England Community

Commonwealth

Avenue,

Sta¬

the/'Calendar

Flotations"

Security
pears

New

which

ap¬

another page.

(Continued from page 178)
eight months of 1942 $584,-

(A comparative study of its 520. As the September, October
development in cities over 70,000) and November months are good
—Newark, N. J.
Public Library, earning months it is likely that
Business
Branch, 34 Commerce the earnings will amount to one
Street, Newark, N. J.—Cloth— million dollars in the full year
$3.50.
after bond interest, taxes and de¬
ness

preciation.
Thus the dividends

J. S. Whedbee Is How

and

Class

earned about

With Baker, Waifs Go.
BALTIMORE, MD.—James S.
Whedbee, member of the Balti¬

indicated
per

stock

Hollis Alden In Worcester
WORCESTER, MASS. —Hollis
engaging in a general

E. Alden is

securities business from offices at

340 Main Street.

Alden

associated with

was

Webber

In the past Mr.

Paine,

Co.

$1.35

stock,

per

and

the

additional

Class
62 %

cents will be accrued to the stock

Feb.

stock

will

The

1943.

have

accrued

Class
to

B
011

Feb.

1, 1943, $3.75, and it is likely

that

all

good

part

can

be done.

that

conclusion,
the

about

Class
with

would seem
selling at
$3.00 of ac¬

stock

over

the

reorganization of the crued dividends and the Class C
company was dated Aug. 1,1941,
stock
with/ its
more
Stock Exchange, and for¬
large > earnings
dividends accrue from that date
merly a partner in the dissolved on the Class A and Class B stock. should have good speculative pos¬
firm of

Jenkins, Whedbee & Poe, The directors declared

dividend

Robert A. Warren

case.

"While the

was

concern

strug¬

gling to advance its product Roe
did not complain.
It does not

after

well,

savor

the

general

deflation caused the best

market

tumble, and engulfed
this embryonic corporation in the

this friend

for

process,

from

redress

friend

seek

to
who

has

placed in the position of de¬
fendant by his naked desire to see
been

ment.

this

action

members

Baltimore

sibilities.

the

Stock

WARREN BROS.

Exchanges.

common

United Piece Dye, pfd.

Series B Collateral Trust

Stephenville N & S. Tex. 5s

Sold

Members Nets York Stock Exchange

71 Broadway
-

N. Y. BOwling Green 9-7027

Bell Teletype NY

1-61

York

"Regardless of Roe's conception
shall the quali¬
of friendship forever temper
the conduct of mankind, for that

ties

one

the

tributes
stock

most

life

valuable

at¬

Had

the

itself.

gone

skyrocketing

would

courts

never

have

the
heard

gentlemen whose scien¬
training holds them in con¬

these

tific

tact, de diem in diem, with the
mysteries of life.
Virtue kindles

Chairman;
Robert A. Warren of Baker, Watts
&
Co.,
Baltimore, Vice-Ohairman; John M. Faust of Blair &

equally possessed by the hu¬
brotherhood, among which is
the one, virtus in arduis—courage
are,

man

often ig¬
nored in the struggle for the om¬

l'argent.
Virtuous and
noble, indeed, is he who can be
steadfast and not ready to im¬
a

•

Russell

Dotts

■

Inc., Chicago; F. Thomas
Kemp of Thomas, Kemp & Co.,
Los
Angeles;
and J.
Wallace
Kingsbury of Kingsbury & Alvis,
Co.,

New Orleans.

Jaffray At Army School

strength, and many virtues there

Palmer

South

Jaffray,

Jaffray

Piper,

partner

Hopwood,

115

Seventh Street, Minneapo¬

lis, Minn., is at Fort Leavenworth,
Kansas, where he is taking a
month's civilian orientation course
in

organization and proce¬
general staff school.1

army

dure at the

well-meant deed ex post

in case the fates rule ad¬
versely to his expectations."

AMERICAN

Quoted

1879

Stock Exchange and

Other Principal Exchanges

25 Broad Street, New York

24 Federal Street, Boston

Class C Common Stock

Paine, Webber, Jackson & Curtis
Members Neiv

Bioren

Philadelphia,

of friendship, yet

Wheeler
Training

209 So. La Salle St., Chicago

BUSINESS

In Naval

O. L. Garrison Elder and

ESTABLISHED

HAY, FALES & CO.

•

good measure:

0. Elder, W.

Spokane Int'l R. R.

are:

Dotts

brought the total to $300," the
Court said, and added by way of

5% Cum. Income 5s due Aug. 1, 1977

Co.,

facto,

4^8 Feb. 1, 1956

$2.50 Cumulative Class B Stock.

Bought

Russel

opinion upon any given prop¬
osition, because it would be dan¬
gerous for him to do so.
Much
less is this suit appropriate five
and a half years after the pur¬

pugn

Series A Collateral Trust

R. Hoe

the committee

any

nipotent

and

of the
Committee of

successful, no person would ever
dare make any suggestion or give

wood

Streets,

Bond

good invest¬
were to be

in difficulties—only too

York

Municipal

the association for the 1943 year.
The chairman and members of

friend make what he had been

has become associated with Baker,
Watts & Co., Calvert and Red¬
New

announced the appointment

of stocks to

eight times and with
stock.

indicate that this

earnings of about $3.50

share for the Class C

!■';■■■

decided that Roe had

chase, four years after the insol¬
vency, and two years after Roe
made
his
last
payment
which

of these
dividends will be paid shortly as
both the earnings and the cash
;
the Class position of the company would
will

Mass.—Heavy paper—$6.50.
first

The Court

led to believe was a

Boston,

Public Library Service to Busi¬

■'

representation, etc.

senior partners of
York Stock Ex¬
change firm of New York and
Chattanooga,
have reported for
active duty at the Naval Training
Station at Quonset Point, R. I.,
and the partnership will remain
inactive for the duration.
S.

Credit "A"

W. A.

Wheeler,

Elder & Co., New

Hill, Thompson & Co., Inc.
Markets

120

and

Situations

Broadway,

Tel. Rector 2-2020

for

Dealers

New York
Tele. NY

1-2660

Full text of Commercial and Financial Chronicle : January 14, 1943, Vol. 157, No. 4142, Section 1

FRASER