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V
BUS. ADM.
LIBRARY
JAN 17
final Edition
ESTABLISHED 1839
1947
in 2 Sections-Section
1
Financial Chronicle
Reg. U. S. Pat. Office
Volume
165
Number 4560
New
Recession Inevitable
York, N. Y., Thursday, January 16, 1947
An Affirmative
With Higher
Program
Wages,
Says Henry Ford, 2nd
Prominent
industrial
prices
says
are
;
and
Copy
Today's Economic Factors
Confronting Management
executive
without further price
cannot
be
raised
increases.
| Advocates legal regulation
labor unions and contends
f practicable
a
already too high:
r
wages
Price 30 Cents
guaranteed
of
no
annual
plan exists today.
wage
(Copyright,
1947,
North
American
News¬
paper Alliance, Inc.)
WASHINGTON, Jan. 12—Henry
Ford
II
today
declared
price
level in
is "too high."
the
'
'
the
States
-
-
In
£
that
United
an
exelu-
''
'
sive interview
.
*
i:
with the North
h e a d of the
1
?ord
that
'
Motor
eco-
an
pie
fallacious
V
Ford,
Henry
*
no-
that
we
tion
2nd
.1
higher
at this time without raising
.
-
can pay
_
wages
prices."
:
Ford's views regarding the price
level
were
particularly significant
In the light of a statement made
Friday by
John R. Davis, Vice¬
-President of the Ford Co., that it
planning to put a new low-cost
on the market this year.
is
■
car
r
(Continued
on
page
295)
Vacuum Concrete
Aerovox Corp.*
Havana Litho. Co.*
♦
R. H. Johnson & Co
Established 1927
Prospectus on request
INVESTMENT SECURITIES
HlRSCH & CO
Bond
BOSTON
Troy
•;
Albany
%
Baltimore
-
Pittsburgh
v
PHILADELPHIA
Buffalo
Dallas '1
-
-!
Syracuse
Harrisburg
Scranton|'i- Wilkes-Barre
Wiliiamsport Springfield
Woonsocket
52
Bond
Acme Aluminum
NATIONAL BANK
CORPORATE
of INDIA, LIMITED
FINANCE
Bankers
> "
to
Head
•'''■?
.
..."
■
Solar Aircraft Company
SECONDARY
26, Bishopsgate,
London, E. C.
>
90c
Conv. Preferred
Office:
In India, Burma.
Colony and Aden ana
Branches
Subscribed Capital
Paid-Up Capital
Reserve Fund
The
^Detroit Harvester Co. Com,
the Government in
Kenya Colony and Uganda
1
Conv. Preferred •: w.
'*
MARKETS
*
.
undertaken
■
Members
N.
Y.
Security Dealers Ass'n
45 Nassau Street
Tel. REctor 2-3600
New York 5
Teletype N. Y. 1-576
Philadelphia Telephone:
Prospectus
Enterprise 6015
;f
HAnover 2-0980
1-395
Montreal
THE
CITY OF
NEW YORK
on
request
V
Hardy & Co.
York
Stock
New
York
Curb
5.
REc.tor 2-8600
N.
Prior Preferred
upon
request
•
New
Teletype: NY 1-635
& Power Company
I,;:V
Analysis
Members
Broadway, New York
Portland Electric
T and Dealers
Members
Bell
OF
Toronto
*
Reynolds & Co.
Telephone:
NATIONAL: BANK
:
Brokerage
if Service.
Members New York Stock Exchange
120
•
Bond
'
-
Company
INCORPORATED
£2,200,000
conducts every description of
banking and exchange business
;
Trusteeships and Executorships
&
Y.
Teletype NY
.f for Banks, Brokers
Company
Conv. Preferred
Gearhart
£4,000,000
£2,000,000
Bank
also
*Twin Coach
CeftOTL. EfiSS*
Zfihzloaf
Bell
New York
Alloys/ Inc,
'
•
Security Dealers Assn.
WILLIAM ST., N.
'
Dept. Teletype: NY 1-708
'
THE CHASE
Members
New. York
Department
Y.
Members New
York Stock Exchange
and other Principal Exchanges
Exchange
Exchange
30 Broad St.
New York 4
Tel. DIgby 4-7800
Tele. NY 1-733
j
111
Broadway, N. Y. 6
REctor 2-3100
Teletype NY lr2708
COMMERCIAL & FINANCIAL CHRONICLE
THE
Trading Markets in:
Electronics Corp.
•
Common
&
Preferred
•"*v":
i,
Old
Effect
Rails
Reorg.
& Preferrerts
*With
*
Members N. Y.
Nat'l Ass'n of
40
Executive Secretary, Research Institute of America
Economist states if recession comes, it will result from^ business
By JULES BACKMAN*
University
<
Says retail sales are at peak, and profit /margins
will be smaller, because of increased operating costs.Foresees no
heavy inventory losses, but predicts decline in prices in months
ahead. Cites wartime increase in lower bracket incomes as a favor-
;
provid butbok
"
Security Dealers Assn.
Securities Dealers, Inc.
S HA 2-2772
TELETYPE. NY 1-424
able
Predicts
more
,
,
-
clamored, of fearing it because of the concurrent extinction of
„
There have been very few
when I have been
that the situa¬
Com. & Pfd.
I am
Society A
Acc.
Inter.
Pfd.
Kingan & Co. Com. &
;
today is
fundamentally
stronger than
it
was
after
World
McEwen & Kaiser
May,
that
recession
an
any
will
and
Westchester Serv. 4s 1953
air
Broadway, N. Y. 5
120
>;•
2-4230
WOrth
BeU
,
:
that
na¬
would
a
Data
for
that earlier
Savoy Plaza
Vanderhoef & Robinson
York Curb Exchange
Street, New York 5
31 Nassau
COrtlandt 7-4070
System Teletype NY 1-1548
Telephone
bell
Stock
A.
vy;
Campbell
S.
Common &
'
Preferred
'4\),
Wells p £ f
H. G. BRUMS & CO.
20 Pine Street, New
NY
Teletype
were as
1-1843
moderate
as you
?
Exchange
NY 1-1557
our
firanch offices
indicate,
Pathe
-j
know that for several
the
see
Members New York Stock Exchange
the recession would come in 1947.
the
crowded
a
System Teletype NY 1-1919
New York 4, N., Y.
v'U;
fire, the num¬
Detroit Int'l Bridge
And: if enough businessmen ex¬
pect
recession
a
communicate
and
nothing.
most:
nomic
set of
circumstances
•
Citizens Utilities Common
and plan on it;
their feelings,1
wonderful
eco*
be
may
Aspinook Corp.
as
^
.
i
Tudor City Units
,
'
'
% V J /'
t
tN> I ','v.f
i
■
•
,
Y, >
'. )'
i
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'' '
' -• ll ^-
Frank C-Masieison & Co.
:
■
Teletype NY 1-1140
take
4
Established 1923
v, -v' ?;»v
Members New York Curb
64 WAIiL 8T.
almost fantastic. May I now
situation
(Continued on page 296)
'"°./
1
«
;>'pg
simism of the last few months is
vated by el tight credit
TeL REctor 2-7815
<
difference
much
make
,
Bell
of
whether there is
Curb Exchange
Broadway WHitehall 4-8120.
"Fire" in a
theaters it frequently
cry
York
Members New
50
Now, for those wbo don't re¬
accompanied .by a ' collapse in
prices. The Wholesale price index call, I Would like; at this point, to I
remind you that I have acquired
fell from 240 to 140, or 100 points
in one year. The .result was enor¬ an unenviable reputation: of being
mous inventory losses.
The liqui¬ a pessimist, and it is a pessimist
dation was speeded up and aggra¬ telling you that the business pes¬
S;f
4
"
3-s
Edward A, Pureed & Co.
months, al¬
unanimously, the Business
Community has been certain that
doesn't
X.'.' ..'
•,
'
>
Southwest Gas Prod.
most
Like
I
'
General Panel
possibility of a recession in 1947
in terms of any of the real prob¬
lems facing us ahead. But I do
the
the
was
Thikol
Central States Elec. Com.
Quite frankly, I don't
inventory losses.' The ; moderate
decline, in sales in 1920-21 was
'
BROADWAY, NEW YORK
120
Direct Wires to
follows:
problem X in
1920-21, The answer, of course,i is
New York Stock Exchange
New York Curb Exchange
:
"X
ber of casualties can be the same.
be asked, if the declines
what
then
'V-v, 7
Members
York 5
.
Bell
it clear.* I am npt
1920 Inventory Losses
McDonnell & fb
WHitehall 3-1223
Telephone:
lAe make
It may
Bought—Sold—Quoted
& Preferred
Common
Let
Airlines
Douglas Shoe
iy.p■ Common . f. .y:p$l
Struthers
Backman
by Dr.
forecastingV a
decline of theSe
Goods
magnitudes, I am merely attempt¬
Association, New York City, Jan.
ing to show you what would hap¬
13, 1947.
: ;
pen if the pessimists are right and
a decline similar to that in 1920-21
or 1937-38 should take place.
L.
W.
:o
greater than ■ in 1941, and more
at than'double the prewar total.
.
♦Address
the Open Forum Luncheon of the
Association of Buying Offices, Inc.
American Overseas
•
-
only 7. If the comparison is made
between the high month of 1920
and the low month of 1921-^after
allowance
for
seasonal
adjust¬ and "about 2Vz times the prewar
ments—the decline was from 105 level. A decline of 20 would re¬
to 87 or 17.1. In contrast, one duce the index ta 210 or 5 higher
than in September, 1945, about 60
of the National Retail Dry
Byrndun Corporation
Common
The Federal
sales averaged 99 in
1920 and 92 in 1921—a decline of
Class "A"
HAnover 2-0700
Will w i h ;isi
applied
store
greater than
sales.
Well, the index averaged at any time in our recent economic
263 iq-1946. A decline of 7 would history.
bring the- index down to 245—or
One of the advantages of hav¬
moderately below the level pre¬
ing just a few minutes to talk is
vailing' last Spring', 22* above the that- you don't pull any punches.
level
in September,
1945—after The two
possibilities I have been
VJ-Day, 84 higher than in 1941
talking about are, roughly as
store
ment
Stock
St., New York 4, N. v.
New Orleans, U.-BIrmf ngham, Ala.
which
to
as
M. Cherne
York
New
25 Broad
to the index, of department
lim¬
Reserve Board index for departs
Savoy Plaza
Members New
are very
Members
those
possibili¬
ties, the doubt
Leo.
Request
Steiner, Rouse & Co.
the
two
decline of 7 from
a
on
pros¬
In
tween
the T946 total mean when
-
period
ited and inadequate.
f§
3/6s, 1956
What would
Jules' Backman
Analysis
o
contest be¬
sales fell 38%.
t
happened
that time.
t
up
pect.
comparable to the collapse
after 1929 when department store
to check what
American
another
about- 10 from 1937
Neither of these declines
was;
was
interesting
Bought-—Sold—Quoted
•
minds
the
add
'X::v'.s
:v
,
businessmen
In
as
retail trade, the
For all
1920-21.
decline
to 1938.
it
decline
exactly the same
I felt
theless,
be
1-1227
NY
Teletype
'
of
Board
Reserve
■
attitudes
the
in
Never¬
ture.'
,v
.
:
in
porary
Exchange
Stock
Baltiviore
Members
index
to one
prospect, and
up
of
Federal
very mod¬
erate and tem¬
Manufacturing Co.
add
facts
the
r
had
abrupt decline in business. By
interesting
coincidence,
the
department store sales in 1938 was
7% lower than in 1937. This was
he
MM&Coinpaiuj
*■ is
frankly this—
1937 and 1938, we also
In
I
War
1921.
20 from 1920 to
Rockwell
The reason for my.
today.
,V"• ''<$$'hesitancy
retail - trade declined
of f the
come
times
hesitant in.
as
talking about the period ahead as
authority estimates that gross in¬
tion
■
government guarantees.
Businessmen have been swamped with warnings that we face a
repetition of the 1920-21 collapse'.
I am one of those who believes
Cassco Corp.
.
abjul to gei the competitive system for which they had V;
men, now
;
Elk Horn Coal
|3) labor leaders' unwillingness to stimulate
repressive leghladon; 'Holds peak- of wage demands has passed; ;
and war pasjibilities have greatly diminished. Accuses business-1
poses
„
si.uatjon, because ?of j (I) depletion of i
as well as government's desire to'avoid!
in Strike
actual strikes; and
industrial strife as difficult problem ahead."
careful buying by consumers. : '
7
>
•
*
factor, and
y
treasuries; (2) labor's
union
-and temporary.
y
;;
communily's bearish psychology rather than real facts. Notes im-
present situation is fundamentally stronger
than after World War I and any recession now will be moderate
Exchange P1-. N. Y.
BELL
|
Dr. Backman holds
;
KING & KING
SECURITIES CORP.
Established 1920
'
Retail Distribution
oil
Associate Professor of Economics, New York
^
Airways*
Prospectus v:' V
''
''
j
Expreso Aereo
Taca
CHERNE*:;''^<^f
LEO M.
Jack & Heintz
Commons
What Business Faces in 1947
The'Economic Outlook and Its
Exchanof
1
NEW YORK 5
HAnover 2-9470
of the problems in some
specific fields, to see how
up some
of the
Abitibi Power & Paper
Common
&
;
Preferred
much reality there
in those areas.
We Maintain Active Markets in U. S. FUNDS for
Boston & Maine R. R.
V
ABITIBI POWER & PAPER, Com.
Stpd. Pfds.
WN
1959
,
the fear of strikes. I think there
BULOLO GOLD DREDGING
Newmarket Manufacturing
& Trust
several
are
in
1947.
thing, there will as
certainty be strikes.
Canadian Securities Dept..
be
a
said
For
to
things
strikes
about
MINNESOTA & ONTARIO PAPER
Standard Thompson
Title Guaranty
COMPANY, Com. & Pfd., 5 %
Securities
.First—and obviously primary—
:
Higgins Inc.
Curb and'Unlisted
Outlook for Strikes
1965
& Pfd., 5 %
is to the fear
one
MICHAEL HEANEY,
matter of
v
*'• *
WALTER KANE, Asst. Mgr.
,
'•
.
5
Goodbody & Co.
^YememidCompcm^
Members
37 Wall
Bell
N.
Secondly — no legislation that
will be passed by, the
present
X; (Continued on, page 295)
.
Members JV. Y. Stock Exchange and
Y. Security Dealers Assn.
Hanover 2-4850
Teletypes—NY 1-1126 & 1127
St., N. Y. 5
'
i
a
talk by Mr.
before "Sales' Executives
Cherne
Teletype NY 1-672
;
♦Transcripi of
'I "\
^
\
• •
'-t
;?< v; v;
>
Joseph McManus & CoL
;
•
f
NEW YORK 6, N. Y. ; .'
115 BROADWAY
Telephone BArclay 7-0100
Other Principal Exchanges
•
Members New York Curb Exchange
,v
:
Chicago Stock Exchange
39 Broadway
^
,
New York 6
Teletype NY 1-1610
Digby 4-3122
Club, New York City, Jan. 7, 1947.
*Air
Savannah Sugar
Punta
'
.v,For Banks, Brokers & Dealers
",
.7
\
/;*.;!•
.
\ •'
-.'.fy :
■.
VXV ':
V-vV:»
(
Members
York
New
York
Curb
Stock
Exch.
Coffee
120 WALL
|
York
New
&
Exchange
Assoc.
Sugar
Member
Exchange
ST., NEW YORK
TEL. HANOVER 2-9612
>•' •
t
"f**
•''
NORTHERN INDIANA
:
-V-/v".
t"|-T.'-"i
'
.
p}
"
'
-X
*' •
-i.y
'•'»
' '
.
• 4
'
\
; '* •
PUBLIC SERVICE
Raytheon Manufacturing Co.
.
•
i\ /./s
$2.40 Conv., Preferred
*UniversaI Winding Co. Com.
'
' '•
•; .*>'*'
w.
•Prospectus on request
•
INCORPORATED
Reynolds & Co.
Members
37 WALL
6, N. Y.
Teletype 1-376-377-378
Private Wires to Buffalo—«CleveUmd---Detroit—Pittsburgh—St. Louis
rl;. r«
J-G -White S Company
'
Telephone HAnover 2-2400
/
BOUGHT—SOLD—QUOTED A-/, y
>1/ ,1/ '
/. ;
York Security Dealers Association
74 Trinity Place, New York
Common
.
Troster, Currie & Summers
Member New
Common & Preferred
3
'''''
v '
^
Products, Inc. Com. & "A"
*Emery Air Freight Corp.
»
Trading Market
Xv:-X. 7
New
?r<.
.
;
Quotations Upon Request
CO.
.
,
Finch Telecommunications
Alegre Sugar
FARR &
•
-
-
V
'
STREET
NEW YORK 5
ESTABLISHED 1890
TeL HAnover 2-9300 "
^
!
Tele. NY 1-1815
120
New
York
Stock
Exchange
Broadway, New York 5, N. Y.
Telephone:
REctor 2-8600
BeU Teletype:
NY 1-635
-
Volume 165 t Number 4560
THE COMMERCIAL & FINANCIAL CHRONICLE
_
267
The Outlook for Stock Prices
I N D EX
Articles
'
"
and
News
v
"
'
An Affirmative Program—Senator Robert A. Taft
The Economic Outlook and Its Effect
pared with 12 months
What Business Faces in 1947—Leo Cheme
§
The Outlook for Stock
Prices—Anthony Gaubis
tory earnings prospects;
266
:
-
able
1. 267
' —Franklin Escherf'%M.
268
Taxes on Stock Transfers by Non-Members of an Exchange
...«
(Editorial)
SEC and
268
ments ;
:
Amendments Today—Edmour
Germain
American Business in 1917—A. E. Zelomek
Vandenberg
over
main fin
; area
that
prevailing
in
Jan.
27.7-\
January
A
Symposium
1947
on
as
'
....
,
276
>
^
•-
5;
Business
Man's
6.;
280
!,
278
7.
Securities Salesman's Corner....
Securities Now in Registration...
284
Tomorrow's
JNSTA
275
% Whyte Says)
Washington and
Observations—A. Wilfred May...
269
f
-p,
Markets
Published Twice Weekly
York, N.;. Y.,
3, 1879.
The COMMERCIAL and
308
■'£
-Reg. ~U. fl. Patent Office
Subscriptions^ in; United
Possessions,
Dominion
269
*:
Publisher
WILLIAM DANA SEIBERT, President -
•
—
•
Monday
every
(com¬
Quotation
clearings,
per
.
Monthly
.
•
v
*-
of
I,Members New York Stock Exchange '
WHitehall 4-6330
easing of
war
Thiokol Corp-
National Company
fears.
Billings & Spencer
National Shirt
9. Some
shortages
but situation
still
greatly improved.
Hi M O D
10,'A
r
consi
technical
d e r a bly strengthened
position, after a decline.of between 30% and 40%
in the average stock, and of
Members New York
interested in
NY
2-0300
1-84
Punta
Alegre Sugar
-
Eastern Sugar Assoc*
Lea Fabrics
\
are
Teletype
Haytian Corporation
*
We
WOrth
_
Dell' System
>
296)
to. MCi
&
Security Dealers Assn.
170 Broadioay
more than 50% in many specu¬
lative issues.
on page
Shops
present,
offerings of
U. S.
(
;
Sugar
Commodore Hotel
High Grade Public Utility and Industrial
^Fidelity Electjric Co.
PREFERRED STOCKS
Class A Common Stock
,
Susquehanna Mills
'***Prospectus
Members
New
25 Broad
Stock
York
Exchange
Street_New^Yoirk.:4■
Members Nero
:
;■'
\'r
V
Albany
Boston
-
York
M
request
Members New York Security Dealers Assn.
25 Broad St., New York 4, N. Y.
'
-
on
DUNNE & CO.
Exchange
Tel.: Andover 4690
Teletype—NY 1-5
•
Glens Falls
Schenectady
-
Curb
135 S,^ La Salle St., Chicago 3
Tel.r HAriover 2-4300
Mohawk Rubber
'
'
2
1
WHitehall
3
Worcester
3-0272—Teletype NY 1-956
Private
Wire
to
Boston
Nath.'Straus-Dup.
Gisholt Machine
Qoca-Cola pottling Co. of New York
Coca-Cola Bottling Co. of St.JLouis
Coca-Cola
inc. .:-/
Members
32
N.
Y.
Board of Trade
NEW YORK 4
/
^
*
•
-
..
&
Public
Part. Preference
National
Trust
National Radiator Co,
*Analysis
Teletype CG 129
"
Bldg., Miami 32
V
*
f,
-
1
Teletype MM 80
.
.
York—Chicago—-St. Louis
Bank
Co.
upon
Request
IIOIXRQSE § IkQSTER,
Harrison 2075
City—Los Angeles
1968
&
Bottling. Co.
Bottlers, Inc. (Atlanta)
Red Rock
Blidg.
Direct Wire Service.
Kansas
of
CHICAGO 4
•V
DlGby 4-8640
Teletype NY 1-832, 834
Telephone: 3-2137
Co.
Macfadderi'.^
Publications, Inc.
6s,
Panama- Coca-Cola
Security Dealers ,Assn.
Broadway
Bottling
A A::
'
Chicago
Coca-Cola Bottling Co. of Los Angeles
STRAUSS BROS.
New
1-2033
8. Definite
year.
Pan American Bank
Mewburger, Loeb & Co.
St, N.Y, 5
TRADING MARKETS
practically com¬
plete, and labor efficiency ma¬
terially improved.
10%.
(Continued
Chicago
,
/ r;
steel.
as
|
7. Reconversion
shortages of virtually
types of raw, materials; in¬
cluding lumber,
copper
and
much
.'r ' S - rf.1 '>■ }\ C-
•
*
all
as
Request
:V
Reilly &Co.,inc.
New York
1
-
:
Earnings
Record — Monthly.
(Foreign postage- extra..)
per
.
Prudence Co.
J. F.
-
(culminating with subsequent
correction of
on
^
possible
prpspect oft some .easing.
hostilities
renewed
$$f<i) <,' 'J ■■:$!Z
.
6. No further restrictions
reconversion problems
.and. low labor, efficiency.
^
.
Prospectus
.
%J
year.
British Industries
8. V. Title & Mtge. Co.
Bell Teletype NY
1
•
Serious
-
Lawyers Title & Guar. Co.
15 Broad
position of labor,! be¬
savings and
Spencer Trask & Co.
^„
Lawyers Mortgage Co. *
Airways
reduced
-
Note-rOn ,account of the fluctuations in
CERTIFICATES
•;
*
of
.
Bond & Mtge. Guar. Co.
Taca
a 1
v
TITLE COMPANY
//
**
,
exchange, remittances for for-•ign subscriptions and advertisements' must
be made in New York funds.
'
}. Reentered as second-class matter Febru*
tery 25, 1942, at the post office at New
i-.iV v.1
5. Weakened
increasing restrictions im the
of credit for
security Trans¬
'
V-
'
ernment.,
-
the rate of
J Copyright 1947 by William B. Dana
I "
Company
i
^ 'l
less one-sided attitude of Gov-
of
Other
land,. c/o'Ed'w^rdsSmith.
'j'yp
in
year;
Offices133 S. La Salle St.,
Chicago 3, 111.
(Telephone: State 0613);
1 Drapers' Gardens, London, E. C., Eng¬
i
I
cause
S.
Members
Quotation Record—Monthly.
$25.00 per yeaf. .(Foreign postage
extra.)
(general news and ad¬
and
$35.00
''
\
„
ness.
'
•
States,- .U.
and
'i-<
iV
Bank: and'
$25.00
issue)
-
Other Publications
WILLIAM D. RIGGS, Business Manager.
plete statistical issue — market
records, corporation news, bank
state and city news, etc.).
Union,
.
Canada,
$38.00
per
Other .Countries, $42.00 per year,"
'
REctor 2-9570 to 9576
Every Thursday
1
of /March
of
HERBERT D. SEIBERT, Editor &
-Thursday, January 16, 194-7
Territories
Pan-American
Publishers
25 Park Place, New York 8, N. Y.
vertising
*V
•
FINANCIAL CHRONICLE
B. DANA COMPANY,
Act
0,
generally satisfactory to busi¬
10. A "bull market" of forty-four
I months' duration, with only one
277
the
k1< '
because of wartime savings and
:
293.
You............
under
annual low price-
average
controls in effect.
radical
$trohg; position of labor, both
-
(Walter
Subscription Rates -
annual high price-
average
\
(
'
of
New York Security Dealers Assn. > •
National Assn. of Security Dealers, Ino.
2. General expectation of a busi¬
ness recession.
9. Extreme
!
i
-
a
Teletype NY 1-1203
Member
i Winchell report forecasting war
i before
Christmas).
-
Reporter on Governments.., 288
Our Reporter's Report..
313;
Prospective Security Offerings.. 313
Public Utility Securities.,.......; 272
Railroad Securities.,..;.... 282
Real Estate Securities..280
274
Notes.
\A<
'■!
■
Our
285
months,
Broadway, New York, N. Y.
HAnover 2-8970
1
1
.'p.*(
5, Fear
Mutual Funds..'..
V;
1
J
actions.
285
Page
Bookshelf...—
Einzig—Will Sterling Be Made
Convertible?
...271
f
Im
use
Regular Features
•
Stocks
Dealer-Broker Investment
■A Recommendations
WILLIAM
f
285
Canadian' Securities.V. *286
f
i
twelve
next
the attitude of the Administra¬
;
289
.„_r
.
r—r
'?V.
Insurance
>' ^
,
39
tion:
of U. S. Trust Co.
and
profits.
v
„
Williamson Pell, Chairman, and Benjamin Strong/President'
Bank
12.5.)
-
Dire Economic Predictions Should Be Ignored,
•
^ f
«'
-
......
Austrian Blocked Accounts De-Frosted
....
16.9, while the
was
was
^
New Deal elements in Federal
Government.
Says State Does Not Have Power to Maintain Control Over
Says Max Winkler
i
t,
G0LDWATER, FRANK & OGDEN
,
4., New appointees to Department
of
Commerce, Treasury, etc.,
Chairman of Brooklyn' Trust Co.2771.
Hotel Transient Room .Rentals
striking
3. Reduction in number of Federal
275
Company
Mortgage Certificates
*,
..
most
4. Continued dominance pi
.273
*
,
the
3; .Fairly rigid price and priority
controls.
Imports of Foreign Issues "11 277 r
on
*
and
Rep. Harold Knutson Urges Reprisals Against Treaty
■;
Violators ^
a;
Treasury Removes Curbs
.sr. t.
2. Extreme confidence in the in¬
,_.___272
...
The World Bank's Presidency in Retrospect
Maynard Retires
earnings ratio
earnings ratio
'•4
termediate Outlook for business
Rep, Howard Buffett Offers Bill to Give Private Lenders
Participation in Export-Import Bank Loans
WHitehall 4-6551
Title
Anthony Gaubis
fairly low ratio.,
1936-1^45, the
years
...272 ;
Fruitful Results of De Gasperi's Mission
STREET, NEW YORK
Offerings Wanted
Among
•the
a
—.272
Outlook
our
re¬
Stock prices at only about 12 Vz
times earnings in prospect for
1.
,
Basis of Recent AFL Affiliation..—271
on
Truman Proposes "Short-Range" Economic
Program!
WALL
99
Jan. 7, *947
(Dow Jones Average 178)
ing the next twelve mohths,
ifairly high ratio: -
*■
of
one
move
may
1946.
1 .^Industrial. stock. prices at 17
times earnings in prospect dur¬
271
and
•'
.
"Varga" Memo Pads
,
Without Labor- Strife, 1947 A Good Year—Marcus Nadler 270
Reorganizing
of
15, 1946
(During the 10
IA New Utilities Publication
that
during second and third
282
;...
Economic Progress in Germany
—Brig.-Gen. William H. Draper, Jr,
TJFE
coming quarter;
283
Retailing and the Labor Laws—Paul H.Ny strom
bid
cats
old
issues; and
new
(Dow Jones Average 203)
277.
high
her
for
are:
274;'.
:
trading
a
contrasts
the
saw
Send for
market at the present time is in direct contrast to
...
Crisis—Philip Murray..
easy
In many respects, the background of the stock
?
World Bank and U. S.-Canadian Cooperation
Labor's Attitude and; Industrial Peace—Lee Pressman
reduction;
quarters; and then resume its major bull trend.
273
—Eugene.Meyer
she
submitted
we
dogs.
tax
Concludes market will
selectively, higher
Will Do Our Part in Promoting Peace—James F. Byrnes.. 273
The Monetary Fund and ITO—Herbert M. Bratter.
274
A Time of
"SHE DIDN'T SAY NO"
—when
favor¬
productive capacity; swollen inven¬
271
-
¬
On bearish side finds: price readjust¬
excess
public's pessimism.
Progress, but No Illusion "All's Well" for Peace
•—Senator Arthur H.
atmosphere;
271
...
attractive yields;
tories; large potential supply of
270
__
Free Economy—Henry Hazlitt
a
satisfac
Telephone:
Free Securities Market—Richard B. McEntire... 269
NYSE Board of Governors Scheduled to Vote on Permissive
a
Incorporation
political
legislation.
1
.
....
Foundations of
com¬
bullish
on
credit; pent-up demand for goods; and better labor
What the New Congress Means to the Investor
;
current outlook based
and bearish elements./ As former lists:
263
Distribution—Jules Backman
Weighs
ago.
♦
Retail
on
status
•
Recession Inevitable with Higher Wages:
Henry Ford, 2nd Cover
Free Enterprise and the Future—W. Averell Harriman ..Cover
V!
AND COMPANY
|
Analyst cites various factors indicating favorable market
»
f&X
■;
Investment Counselor
.Cover
Today's Economic Factors Confronting Management
—Murray Shields .I....,.'
v
By ANTHONY GAUBIS
"
Page
'
.
LlCHIflMEin
-
'
\
74
«
ESTABLISHED 1914
C. E.
Trinity Place, New York 6, N. Y.
Telephone:
k
rBQwling Green 9-7400
v*'
^
N.
Y.
Security
Dealers
Ass'n
61 Broadway, New York 6, N.Y.
Teletypes:
NY 1-375—NY
Unterberg & Co.
Members
•_
Specialists in Soft Drink Stocks
l-275f
Telephone BOwling Green 9-3565
Teletype NY 1-1666
THE COMMERCIAL: & FINANCIAL CHRONICLE
What the New
Thursday,- January 16, 1947
Congress
Means to the Investor
actual markets
in 250
active issues
Abitibi Power
Buckeye Steel Castings
Cinecolor
Chicago R. I. & Pac.
Old
Pfd.
Diebold Inc.*
District Theatrest
Douglas Shoe*
Expreso Aereo
■
General Machinery
Gt. Amer. Industries
Hartford-Empire Co.*
Higginslnc.
Hydraulic Press
Lanova*
Majestic Radio & Tel.
Michigan Chemical
Ontario Paper
&
Minn.
Missouri Pac.
'
vOld
Pfd.
"
>:::
I *
Mohawk Rubber*
"Tell
Moxie
Stinky Davis that Droopy Drawers O'Toole who went to
P. S. 17 with him is herein ' ,.
'^„v7
N.Y. New Hav. & Hart
Old Pfd.
Philip Carey
Purolator Prod.*
Richardson Co.
Rockwell Mfg.
Taylor-Wharton*
Tenn. Products
STRATFORD PEN CORPORATION
"Upson Corp.*
U. S. Air Conditioning
*
Prospectus and Supplemental Report
Available
Request 1
on
United Drill & Tool"B"
Vacuum Concrete
FIRST COLONY CORPORATION
Alabama Mills*
*
New York 5, N. Y.
S2 Wall Street
Aspinook Corp.*
N. J. Worsted, New
Textron_Wrnts. & Pfd.
Teletype NY 1-2425
Tel. HAnover 2-8080
Bought
Birmingham Elec.
Quoted
Sold
^
Cent States Elec., Com.
NATIONAL COMPANY
Derby Gas & Elec.
New England P. S. Com.
Puget S'nd P. & L. Com.
EASTERN CORPORATION
NORTHERN
Scranton Elec.
INDIANA PUBLIC SERVICE
Central National
Southwest Natural Gas
22 East 40th
Standard Gas Elec.
Bulletin
or
Street, New York 16, N.Y.
Teletype: NY 1-2948
Telephone: LExington 2-7300
1Prospectus Upon Request
*
Corporation
ESTABLISHED 1927
Circular upon request
*Argo Oil Corporation
^Fashion
*Upson Company
.
^Osgood Co. "B"
Park, Inc. Com
*Wellman Engineering
Tennessee Products
^Commodore Hotell Inc.
Members N.Y. Security Dealers Assn.
14
rvV
V'"*
'
•
-7-
*
••
,j
*
.
V"'.-* s
•*>,»" ' 'Vi>v *>
v
*Descriptive Circulars on request
N. Y. 1-1286-1287-1288
Seligman, Lubetkin & Co
Direct Wires To
Phila., Chicago & Los Angeles
•
Incorporated
ENTERPRISE PHONES
Dartf'd 6111
Buff. 6024
Bos.2100
Members
41
Broad
New
York
Security
Street, New York 4
J.K.Ricc.Jr.&Co.
Established
Members
Dealers Association
HAnover 2-2100
N.
REctor
Y.
1908
Security
2-4500—120
Dealers
Assn.
SIEGEL & CO
39
Broadway, N. Y. 6
DIgby 4-2370
Broadway
Bell System Teletype N.
Y. 1-714
Teletype NY 1-1942
,
-Volume
165
Number 4560
oitlii®
CANADIAN
SECURITIES
Behind the-Scene
-
Interpretations
yi
'gJ •
—^
m/
.U
from
% A, WILFRED MAY=
m
Aldred Investment Trust
THE STOCK EXCHANGE "12 YEARS AFTER"
:?||§|:;;4V2S, 1967
Investment Market?—-Speculation Machinery ?~~Gambling Parlor?
endemic American
of his occu¬
pation as "a gambling business" caused such a self-imposed sense of
embarrassment to the Stock Exchange's officialdom, that it "fired"
President Truman will be rebuffed by Congress on at least two
major planks of his 1948 fiscal year platform.
(1) His $37 billion
budget will be flattened to a level somewhere between $34 and $35
billion.
(2) His plea for continuation of all existing taxes will be
denied.
Lawmakers
not pleased by<£the 37 billion dollar design, are
trolled.
Elsewhere, the shape
of things is less apparent.
ready to cut the budget until Fed¬
~
,
eral
are
spenders
hurt and hurt
are
badly.
Actually, the prospect of
bureaucratic - blood
letting
is
-
viewed
with
'
*
*
#
•
First labor legislation reaching
the White House will deal with
glee by Capi¬
some
portal-to-pOrtal pay.
This will
probably (1) so define portal pay
as to restrict it to prework prepa¬
so
far that transfusions in the
ratory operations actually required
form of deficiency
appropriations
by employers, and (2) limit the
became unavoidable late in fiscal
recovery period. Such pay won't
1948. Extremists are in control.
be forthrightly outlawed.
tol
Republicans. It wouldn't be
surprising if this punishment went
legislation
tive
may not be so
as was
coal strike.
change,
though labor
as
puni¬
indicated during the
But this outlook can
will
change
strikes burgeon again.
if
big
Wagner
giving em¬
ployers more rights, giving la-»
bor more
responsibility are as¬
sured*
Industry-wide^ collec¬
Act
amendments
tive bargaining
and closed shop
restrictions
certain. Cooling
are
off periods will be imposed and
welfare
strikes
will
be
con¬
vidual
income
almost
certainly
tax
cut
will
be voted by
House. Senate position is less;
positive. Important House
leaders
ready to dicker
are now
with the unwilling, to continue
wartime
other
excise
imposts
an¬
in return for 20%<
year
votes.
;
Late
1947
*
■'
•• 9
him on the instant.
nature
of
early 1948 should
dangle before American finance
(Continued on page 301)
or
By RICHARD B. McENTIRE*
After
renewing background of Securities Laws, Commissioner
McEntire expresses view "none of us
jyan| to go any further than
necessary*" Explains new Rule 131 which aims to accelerate and
clarify distribution of "red-herring" prospectus; and stresses desirability of getting information directly to investor. Says customer
expects more from securities dealer than from corner grocer, and
cites importance of gaining customer's goodwill. Reveals efforts
being made to simplify both registration statements and prospectus
free market in securities must
a
honest
an
mean
gg
*
Keinjg. a mid-westerner myself, I. feel quite.at homo here in
Chicago, and therefore, I would like to talk very frankly to you this
evening; If I
*
-
may
say
ely
pur
commercial
a
per¬
sonal
word,
that
I
came
SEC
open
an
mind
with
and
an
objective
pro a;ch.
least, to
ap¬
the
mean,
best
my
should
At
of
for
ability, I at¬
tempted to do
so.
Being on¬
Richard B. McEntire
philosophy. As part and par¬
cel of my personal background I
have always believed, and I be¬
♦An
that in its contacts with
address
by Mr. McEntire
•before the Illinois Securities Deal¬
ers
HART SMITH & CO.
/
BHpjflBHM
aren't
does
not
the
plays,
or
should
the ball.
all
know
of
the
SEC
and
I want to talk with you,
able
to
some
things
get from
you
releases,
53
revealed
—as
Association, Chicago, 111., Jan.
registration statements. I do not
lay claim to an intimate knowl¬
edge of these matters based"
any
long
agency,
as
Commission
connection
I
have
upon
with
been
on
Bell
New York
For underlyJS: j*' % gVjjft
ing the regulatory thinking abroad is a thorough§
lj®pf
ly sophisticated attitude recognizing the 'imposHBH
■ JJBvsibility " of eliminating risk from '■ "investment"iaP g t
Whether it be in
activities.
Court
or
its most staid
H
London's Shorter's
banking house,
the ^
or on
on
page
Toronto
Montreal
•
|
Albert Pick
or
inhibition
In line with British realism on the subject, the conclusions re¬
sulting from the British Board of Trade's major inquiry into Sharepushing, in 1937, were summarized at the time as "a statement that
share-pushing can't very well be prevented, and .that therefore no
really frantic steps, need be taken to try and prevent it."
American Beverage
Preferredv V' v
PETER BARKEN
our
attitude of frank realism
an
1933
and
1934
laws.
In
own
was
order
Tel. WHitehall 4-6430
,
Tele. ny 1-2500
Specialists in
■■
r
Domestic, Canadian
New Deal securities
avoid
J
that
and
also envisaged as the
to
New York 4, N. Y.
32 Broadway,
Gaming Act of 1845 and provisions of the criminal code.
At the time of the formulation of
Eliminator
Carbon Monoxide
the only legal sanctions to stock exchange dealings arise from their
of the
Milling
San Carlos
™Wjn
Amsterdam, there has never
H
w
;
of the concept
that the
equity share—be it Royal Dutch or the newest
wireless invention—is a "counter" in the quest
a. Wilfred May
for market winnings.
(In line with the British
concept of capital gains being fortuitous, is their continuing ex¬
emption from income taxation, in contrast with our tax levy thereon.)
any
American Insulator
HBreA M M
Philippine
the
public's
potential harmful inference that government supervision would infer
Mining Issues
safety, it was stated again and again that disclosure of the true facts
—without relevance to quality of. securities—was to be adduced by
cent
<.
years
the
SEC
itself
in
its
administrative
policies
has
departing from such philosophy. For example, in its activities super¬
vising new issues under tlje 1933 Act, the Commission hag seemingly
used its discretionary power to refuse to agree to accelerate regis^
trations, thus causing issuers to miss their market, in cases where
it disapproves of
a
security's worth.
HfAHBt & HULSEBOSCH
■
been
"
In
the sphere of "disclosure," it seems that customers'-broker
jHaskell functioned ip # statesmanlike manner. For if his attitude
toward his clients followed his frjank pronunciamento to the Judge^
he was honestly "disclosing," for their own benefit, the kind of active
ity in which he was servicing them. (For which constructive be-havior he perhaps should have been; promoted.)
Or in order to
304)
page
on
•
,
Investment, Securities
In
New York 5, N. Y.
62 William St.
Telephone
WHitehall
Teletype
-
NY 1-2613
4-2422
Branch Office
113
Hudson St.,
Jersey City,
N. J.
Tfading Markets^ In
Did Mr. Haskell's Conduct Perhaps Really Merit Promotion?
(Continued
Dealers
&
Brokers
(
,
.
I
,
Joseph Bancrofts Sons
Central States Elec.(Va)
Christiana Secur, Com.
Moore Drop
Rochester
;
Forging Co.
Telephone
Laird, Bissell S Meeds
TRADING MARKETS
IN
Members
"OLD"
Exchange
-,
Bell
Teletype—NJ 1^248-49 •"
f
Rutland Railroad
Chi., Rock Island & Pacific
."&t;i Louis-San Francisco
Louis
Duluth, So. Shore & Atlantic
Seaboard
Missouri Pacific
Haven & Hartford
Stock
NEW YORK 5, N. Y.
Old Colony Railroad
Chi., Milw., St. Paul & Pac.
N. Y.» New
York
Telephone: BArclay 7-3500
;
Preferreds & Commons
Denver & Rio Grande West. <
New
120 BROADWAY,
We maintain active trading
markets
Air Line
the
■
following:
4
Great American Industries
(Western Pacific
N. Y., Ontario & Western
in
Southwestern
Willys-Overland, Pfd.
Wisconsin Central
Dumont Laboratories
Pantasote Co.
G. A. Saxton & Co., Inc.
70 Pine
Street, New York 5, N. Y.
Whitehall 4-4970
Teletype NY 1-609
H. I. BAKER & CO., Inc.
40
for only about eight
(Continued
1-395
NY
Teletype
in SEC administrative policy.
and
the
the
HAnover 2-0980
ST., N. Y. 5
WILLIAM
-
opinions, orders, prospectuses and
lar
lieve now,
call
however, about
particu¬
That
however," that the referee
its work.
took to it my
own
infractions.
carry
You
human,| I
ly
securities.
our federal securities regulation-,
in the Securities Acts of 1933-34
mat¬
umpire, arid that the orderly con¬
duct of any activity, whether it
be in sports or in business, de¬
pends upon having a referee to
insist upon compliance with the
rules and to assess the penalties
the
to
with
in
United Securities
r
3s, 1952, Series A
ters the role of government is that
of the disinterested and impartial
I
trust
economic
and
activities
Haskei'i
the government. In other words,; the government "was not to stop
"the game," but to see that the "wheel" was not crooked. But in re¬
Commissioner, Securities and Exchange Commission
and concludes
their
Steep Rock Iron Mines Ltd.
51/2S, 1957
philosophy and
basis
SEC and afFree Securities Market
"0 Brown Company 5s, 1959
-
•
Basically, the present event follows the fundamental difference between European regulatory
regulation,
v
-
.
Apart from the gem for journalistic "ribbing," which the
cause celebre gratuitously furnishes, it does carry
serious
implications bearing on the American
people's concept of, and attitude toward,the !'■
Further symbolizing the realistic British attitude is the fact
*
•
an
."i*
been
Tax outlook remains blurred.
Ten to Twenty percent indi¬
as
customers' br°ker's casual -characterization
a
Bourses of Paris
f
It how looks
•
For
still remains
Puritanism
Apparently
trait.
Wall Street
WHitehall 3-9590
Jlfembers of Nat'l Securities
300)
Dealers Assn,
:i5!i947;!!;^
ACTIVE MARKETS
American Gas & Power
(Kingdom of the Netherlands
1
Notice to Report Lost Securities
|■/.
■
Embassy urges persons, not
Kingdom of the Netherlands who
ownership
of
securities issued
and/or payable in the United States of America,'
1
which were • physically located in the Kingdom of
the Netherlands during enemy occupation and ot
which they lost possession, to file a report of the
loss of such securities with the Office of the Financial
Counselor of the
Netherlands
Embassy,
25
'Broadway, Room 1132, New York 4, N. Y. on or
before January 31, 1947.
4
The
BROKERS
—
Central Ohio Light & Power
Benguet Cons. Mines
DEALERS
Northern Indiana Public Service
Netherlands
resident
claim
■
F. BLEIBTREU & CO., Inc.
in the
Tennessee Gas & Transmission
Foreign Securities
beneficial
Lack
of
information in the Netherlands as to
specific securities may lessen the chance
Majestic Radio
Bought—Sold—Quoted
Vulcan
,
tfy* Office
mentioned above. ■
at
,
of
,
Financial
the
>
,
,
Counselor
Gold
—
Silver
—
Platinum-
FREDERIC H. HATCH « CO., ISC.
Established
MEMBERS N.
1888
Y. SECURITY DEALERS ASSOCIATION.
>
79 Wall St., New York 5, N. Y.
63 Wall
,
New York, January 14. 1947, "
Iron Works
Foreign Exchange
of discovering their present location or disposition,
Circulars and. the necessary forms may he ob¬
tained
General Tib Investment
Musicraft Recording
Domestic Unlisted Securities
.
the loss of
Copper Canyon Mining
Telephone
HAnover
2-8681
Street, New York 5, N. Y.
Bell Teletype NY 1-897
G0ULET & STEIN
Member Nat'l Ass'n oi Securities Dealers, Inc.
27 William St., N. Y. 5
HAnover 2-7768;
270
THE COMMERCIAL
BALTIMORE
NYSE Board of Governors Scheduled to Vote
Baltimore Transit Co.
All
Issues
&
FINANCIAL CHRONICLE
Permissive
'
;
on
Incorporation Amendments Today
Davis Coal & Coke
Question has been subject of heated discussion
of Exchange since last spring.
•
among
j
<
National Sash Weight
•"
Preferred' '
Y;. Y'Z/
•//
/At last, it would appear that the Board of Governors of the New
York Stock Exchange is ready to take definite action on the
question
of
STEIN BROS.
nouncement has been made
&BOYCE
Exchanges and other, leading exchanges!
CALVERT ST.,
BALTIMORE 2
is scheduled to vote
at its
Bell Teletype BA 393
.
New York Telephone BEctor 3-3337
An-^
by the tion has
Maynard Committee which is op¬
posed to the issue that the Board
Members New York & Baltimore Stock
6 S.
permissive incorporation.
•
on
the matter
meeting today.
Spring, the ques-
Ever since last
'
LYNCHBURG
BOSTON
Manufacturing Co. ■Y/iY/'v
>,
Dwight Manufacturing Co.
American Furniture
Naumkeag Steam Cotton
Parker Appliance Co.
Co.
Bassett Furniture Ind.
Purolator Products^'.
•
1
Saco Lowell Shops
■
.Warren Brothers Class "C"
du
'(
inquiries Invited
!
,
Dan River Mills
-
'
>
Scott, Horner &
Mason, Inc.
Pont, Homsey Co.
31 MILK STREET
BOSTON 9, MASS.
HANcock 8200
N. Y,
Tele. LY 83
Telephone CAnal 6-8100
the
of
the
among
Exchange/
took
;
(Continued
on
the
316)
page
Utah-Idaho
Request
Street, Boston 10
Tel. Hubbard 3790
-
PES MOINES
York, Philadelphia and
Los Angeles Stock Exchanges
Also Member of
New York Curb Exchange /
1420 Walnut
f
1, Utah
,
Phone 4-7159
Established! t89B
Bell Tele. DM 184
>
Stock Exchange Building
Salt Lake City, Utah ;
:
' PH 30
Teletype 81167
Common & Preferred
YZ/Y/Z./:
Common &' Preferred
Y
•/V.
■
■:
■
Yv./-/
^
"
"
,
be one o|
f
f
-,
"During
of peace
has
already set
decreases
may
be
j;
in, fur¬
"It is of the utmost
expected,
that these years
be
swings
r
„
r
.
"There will also undoubtedly be
a
apparel,
decline in prices of
living will have
a
met,
favorable effect
of good business
prevent
sharp
the
in
to
business
cycle,
when the pent-up
of
kinds
ac¬
quality. A decline in the cost of
Phone 5-6172
utilized
is
importance
demand for all
commodities
when
keener,
has to live
been
has
competition
foreign
and when
the
nation
current income." /
on
ATLANTA, CA
STATE AND MUNICIPAL BONDS
Textile Securities
Pittsburgh Railways
Y
.
|
Empire Steel
Winn & Lovett Grocery Co.
...
*
-
decision.
Southern
Empire Southern Gas
•
*
yearJi947 will
SPARTANBURG
CORPORATE BONDS
American Box Board
•
notably
,
.
Botany Worsted Mills
•i/v.'-•,
taxes,
important to; balance the budget
.
Foremost Dairies, Inc.
•
reduce
Private Phone to N. Y. C,.
COrtlandt 7-1202
«>
to
excise and luxury taxes. It is more
k'^The
companied by an improvement in
BROKERS
1606 Walnut St., Philadelphia 3
PEnnypacker 5-8200
long as inflationary dan-»
prevalent it would bp
are
unwise
the year.
,
Members Salt Lake Stock Exchange ■/•
JACKSONVILLE, FLA.
'«
ther
W.H. CHILD, INC.
%
IOWA
"So
gers
greatest problem that con¬
decline
Inquiries Invited
BUILDING
pronounced/nor
particularly in the second half of
boeNning &ca
9,
ernment
it, important treaties
will be negotiated, labor
legislation will be passed and the
fronts the country is to reduce
foundation may be laid for biisi-f
prices. Agricultural
prices are ness developments during the
altogether too high and while a next few years of prosperity./
STOCKS
Bought*-^otd~~Quoted
MOINES
and the return flow of currency.
fairly certain, however, that
acti^ty in dur¬
;accomDanie<M>yt<nn**
•
"The
UTAH MINING
American Meter Co.
3.30% Preferred Stock
EQUITABLE
move¬
the 2lk% rate on
of the economic life of .the
nation.
for
*
activity, the
It is
long duration.
phases
Grinnell Corp.
•
business
ment prices, the volume of loans
which should affect favorably all
bell system teletype stf 464
BROKERS and DEALERS
Light Co.
PES
on
monetary
depend primarily
■
Salt Lake City
WHEELOCK & CUMMINS
Iowa Power &
authorities will
siderable construction of homes; and to reduce
public debt than to
will generate purchasing power reduce taxes.
'
''
\
;
/ 160 S. Main Street
//Loo Angeles!,
Hagerstown, Md.
/ N. Y. Telephone—WHitehall 3-7253
'*
V Private Wire System between*
\
Philadelphia, New York and Los Angeles
INCORPORATED
be
period.
war
and the policies of the
"High business
if TRADING MARKETS
;
magnitude as occurred
able goods/
a COMPANY
Pittsburgh, Pa.
i
*
Edward l. burton
'"
would
less station¬
long-term gov¬
obligations
will defi¬
nitely be maintained although an
increase in other rates/reflecting
r "If
a " recession >^.'khotild'>^sikQ'
primarily increased risks/ may
place later on in the year, it will
be expected; »
4
^
^ '
be primarily in soft goods and
.
Sugar
ESTABLISHED1899
certainly
more, or
"The movement of interest rates
liquid savings in the hands of the
people, no depression can be ex¬
pected in the immediate future.
of
Street, Philadelphia 2
New York •//'/ Y
,
Tele. BS128
'
New
and
throughout the
ary
round of strikes of
9hbuld neither he
Members
those whose income has in¬
has remained
jfor housing, durable goods, ma¬
chinery and equipment as great
as it is at present,
and the vast
Amalgamated Sugar
Request
bottlenecks
disastrous to those whose income
"With the accumulated demand
Light
of
further
creased
during the early part of 1946.
SALT LAKE CITY
Utah Power 6-
same
a
removal
a
even
highly^ddubtfhi#Kether:thiS!Vear
will witness
income of' all
importance
spiral between
prices and wages be avoided. Such
a development would not benefit
"It m
said.
"The
that
year ■$; Profess
sor
Nad 1 e i*
Nadler
real
-/■•/
.
"It is of the utmost
labor
.1947 ought,to
be, ,a good
LD 1J
Memos on
Walter J. Connolly & Co., Inc.
24 Federal
"Barring
The
subject of permissive in¬
corporation: has become aYverY
boring theme among the Exchange
York
difficulties,
Dr. Marcus
whole since it
shortages and the ensuing in¬
creased efficiency may result in a
decline in prices of durable goods
during the second half of the
/
year.
.,
City on Janu¬
ary 10.
serious
-:v/'/'/;
a
as
and
luncheon in
a
and, at successive monthly
meetings, kept on postponing it.
Ordinarily, the Board discusses all
matters of policy at its first meet-?
ing/of the month.
Before ;thq
question can go to tjtie entire
membership; the Board o£ Gover-r
nors must first
approve of thd
matter themselves./ ''
I
The, Gruen"Watch Company:
<
1
:
in-/Fi¬
New
the nation
people.
sity.
various points to be considered;,
the Board postponed its decision
■;>/■- ■ Y'YVV/:v Y•
will "increase
York
New
U niver
■■■■
on
Club at
BUCKLEY BROTHERS
on
in <§■
annual
forecast to the
Men
time to
more
Prior Preferred
Circular
his
the
up
,
Boston & >Maine RR*
'
greatest problem.
as
University
The
PHILADELPHIA
*
Sees lower prices
nance
Philip Carey Manufacturing Co.
ahead,
v
prices, increased production, and general labor peace
for 1947 were predicted by Professor Marcus
Nadler of -New York
discuss the
Colorado Milling and Elev. Co.
serious depression
no
sees
recession, of short duration may occur in "soft"
question in the early Fall but, it
understood, yielding to the
pressure exerted
by those whd
favored
the issue, saying
they
iiiliilHIiiiliiilliiliiliilllllliiilllllillii'
B<m
goods.
'
some
is
Lynchburg, Va.
'Teletype BS' 424
vhut says
then
Trading Markets
,/
t/ Berkshire Fine Spinning Assoc. ///
been debated
itself. first
wanted
rfiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiKiiiiiiiiiiii
Bates
i
;
members
Board
Strife, llt/glll
a Good Yeac Nadler
New York University professor
members
*
Monumental Radio
Without Laboi
llil1947
By EDMOUR GERMAIN
Bay way Terminal
Thursday, January 16, 1943!
I
Coif
AND
Sterling Motor Truck
YV-'-
Warner
Company
LOCAL STOCKS
'
.
Properties
^
Wawaset Sec. Co.
Clyde C. Pierce Corporation
Florida Municipal & Corporate Securities
H. M. Byllesby & Company
Barnett Nat'l Hank
Bldg.
;
Jacksonville 1, Florida
:
*
Long Distance 47
Teletype JK 1811
Branch—-St. Petersburg, Fla.
-
,
,
,
t
A. M. LAW & COMPANY
PHILADELPHIA OFFICE
.
SPARTANBURG, S. C.
""
L. D. 61
PH 73
RIttenhouae 6-3717
(Established 1892) /'/;.■
\f
Stock Exchange Bldg. Phila. Z
Telephone Teletype
Established 1894
RHODESrHAVERTY BLDG.
f
Teletype AT 288
t
Teletype SPBG IT
.
>
ATLANTA 1, GECjRGIA
Long Distance 108 ,
.
^
e
»
»
♦
LOUISVILLE
»
SPOKANE. WASH
ST. LOUVS
NORTHWEST MINING
American Air Filter
American
Girdler
For Immediate Execution of Orders
Willett
Stix: & Co.
Corporation
or
of
Quotes call TWX Sp-43
on
Lime Cola Co., Inc.
/
Floor
Exchange from 10:45 to 11:30
Pac. Std. Time: Sp-82 at
INVESTMENT SECURITIES
^
other hours.
'•
;
THORNTON, MOHR & CO.
:
,
CORPORATION
St.Louis I.Moe
Member* Standard Stock
of
Incorporated
.
Offerings made only by prospectus
—icopy upon request
*
STREET
Brokers
1st Flow
Kentucky Hon« I.If* Bldg,
LOUISVILLE 2, KENTUCKY
Long Distance 238-9
Bell Tele. LS 186
4
Bought—Sold—Quoted
'
STANDARD SECURITIES
m BANKERS BOND
" '
'
Grocery
509 OLIVE
Comfnon Stock
;
,
A.M.,
Murphy Chair Company
Winn & Lovett
1
SECURITIES
Turf Ass'n
Consider II.
MONTGOMERY, ALA
Member* St. Louis Stock Bzcbange
-
Exchange
/
Spokane
Dealers 'Underwriters
/
Montgomery, Alabama
Peyton Building^ Spokane
Branches at
-
Kellogg, Idaho and Yakima;, Wn.
■
Tpjpnhone
3-6696 & U D. 53
■.
•
,
Teletype
MG 84
Will
UFE Reorganizing on
Basis of Recent
I
Sterling Be Made
Convertible?
Dr.
as
on
U. S.
Sees little
extension of time limit for
an
effecting
Bal¬
loting will be conducted in the new
enlarged offices Of the union on the
third floor at 40 Exchange Place
con¬
count.
the
balsuccess
move
the
of
converti¬
Britain
favorable.
bility of ster¬
ling which has
for
to
come
to
cannot
settlement
a
sit
terms
ment
Dec.
Of
Dr.
6, 1945. There
be
can
Paul
"
•
>
1
Einzig
'
,
views
fice
ness
question
no
making
of
solidated
One of the major difficulties of
'»
iX'.r.V,.
L.,
Z'?-
tlement.
A contract
Foundations oi
Free
a
signed Tuesday
was
afternoon 'between the Financial
Employees ; Guild and the Title
Guarantee & Trust Company pro-
a
Asserting we are enjoying an inventory replacement boom, Mr.
Zelomek predicts a business recession when this accumulation ends.
Foresees, however, no serious depression as in 1929-32 because
; of
strong position of capital and durable goods industries. Says
:
position of textile-apparel industries is deteriorating rapidly and
"t: prices are so high that present scale of business activity Can con;time only for a few months.
Concludes outlook is not frightening
and an adjustment of prices; to potential consumption is more
important than increasing production.
Gentlemen,! am
optimism, I shall be
Economy
By HENRY HAZLITT*
dent's Council
almost
implies
treasonous
estimate
the
speechless.
or
-avoid this;
extent
timing
coming
of §
of money,
busi¬
To do
:
which
and fraud
are
essential to make
U.
consumer
buy
as
of it
as
to
much
he
wishes, to
buy it when
he wishes, and
to
buy it at
the price he is
willing to
The
is
pay.
producer
free
Henry Hazlitt
to
make what he
wishes, to make
as
much of it
as
he
wishes, to make it when he
wishes, and to charge whatever
price he
can
S.
get
or
ule
which
on
to
fix
minds;
sumably
He is
pre¬
leave
interfere
with
not.
the
other
producers,
doms of workers,
one or
freedoms
with
the
...
or
to
true.
be
But
I
object
....
...
.....
...
.
than a mild
ity.
dip in business activ¬
Such statements are an ope*
(Continued
on
page
294)
Kingdom 4%, 1960-90
.
.
.
..
^
Rliodesian Selection Trust
Gaumont-British
■
Scophony, Ltd*
i/{
'i-"fee
Miles
>
Publication
Goodbody & Co.
A5 hew weekly financial letter
on
public
nounced
ports,
utilities has been
Members N. Y, Stock Exchange and Other
an¬
Inc.,
publisher,
Teletype NY 1-672
Telephone BArclay 7-0100
Munsey
Building, Washington, D. C.
Principal Exchanges
NEW YORK 6, N. Y.
115 BROADWAY
by Public Utilities He-
First
Now Has "Most Free"
nancial
firm's
edited
Letter,"
special
financial
by
staff
the
in
Suliivan-Waidron Products
New York City but released from
By his courageous action a few
months ago in striking down first the Nation's Capital, was sent out
the price controls on meat, and Jan.
1,1947. The-new service pre¬
later the price controls on nearly
sents a weekly appraisal and sum¬
everything else, President Truman
took the greatest step toward a mary on matters relating to public
free economy that has been taken utility finance, including security
by any nation that participated in markets, earnings and dividends,
the last war. Apart from a few
latest developments on holding
neutrals, as typified by Switzer¬
land, the United States has now company integration plans, cur¬
the most nearly free economy of rent and pending financing, etc.
any great nation in
the world. The subscription price is $25 per
(Continued
298)
page
on
COMMON
*;■
/•'VY[i:;
'•i'*'•
Company
STOCK
fa-?-..•<-
Manufacturers of the Nationally Known
"WHIPSTER"
PROSPECTUS ON
REQUEST
F. H. KOLLER & CO., Inc.
annum.
Members N. Y. Security Dealers
111
BROADWAY,
NEW YORK
Ass'n
6, N. Y.
NY 1-1026
BArclay 7-0570
so
BRITISH
of
free¬
with the free¬
doms of Consumers; He cannot use
force
tain
meeting and go about your affairs strenuously when I read serious
in such a way as to make my* statements made to the effect that
the present inventory replacement
prophecy 100% Tight*
boom will be followed by no mora
two
allowed
A.- W. Zelomek
this
whatever price
subject to only
who predicts that the various
of business activity will
be high in 1947; they begin the
year with such increases above a
year ago that this is almost cer¬
averages
you
then
will
,
argument with any*
One
your
he thinks it wise to ask.
Restrictions. He; is
Outlook
no
issue of the "P. U. R. Utilities Fi¬
Economy
Is free to buy
what he wish¬
es,
*
I have
British Securities Dept.
an
free.
con sumers.
The
-*
A New
protection against violence, force
economy
v
definite sched¬
Broadway. The employees had
notmet.
Simple Logic of the Business
.
voted ialmbfct unanimously a week
before to strike If demands: were
<8>-
both to pro¬
ducers and to
\
give
you
gentlemen
a
I*-
t
gives freedom
way
reach
<:;**■
The foundation of a free economy, the foundation of all eco¬
nomic freedom, is the free market. What is the free market? It is the
market
278
My only chance to
awful responsibility i»
my remarks in such a
that you gentlemen will,
your own conclusions.
frame
will
so
a
and credit, and denounces foreignblending by Export-
Import Bank. Holds present government policies prolong inflation¬
ary boom conducive to deeper depression.
Holds rent controls
retard building and distort economy. Concludes industrial workers
are primary beneficiaries of great corporations.
to
a
setback.
ness-
...
'
a
to
York State Board of Mediation at
Stressing free markets as foundation of a free economy, Mr. Hazlitt
urges a free labor market, without governmental interference or
compulsory arbitration. Also advocates elimination of credit; controls, such as Federal Reserve's power over interest rates, volume
Gentlemen, I am at more than
loss. If it were not so early, I
Would
almost
say
that I am
that it will be
session at the offices of the New
Associate, "Newsweek" Magazine
'
*
at a loss.
If I now talk to you with unqualified
traitor to my own convictions.
Yet the Presi¬
a
*An address by Mr. Zelomek
$6 general increase in before the Rotary Club of New
wages, a 35-hour work week and York, New York City, Jan. 9,1947.
other benefits, such as paid hos¬
pitalization and group insurance,
for 1,200 employees of the com¬
pany. The agreement was reached
United
in the morning after' a 13-hour
vidihg
?"&■■■* \s\'J. ':Z
■ ■
of
State Board.of Mediation for set¬
inability to
(Continued bri page 293)
represent nearly half of the total,
Workers
CIO, and Herzfeld and
employees of the firm last week
has been taken to the 'New York
settlement is Britain's
into a long-term lia¬
And since Indian balances
Professional.
&
imous strike vote of the organized
to settle on reasonable terms.
bility.
to
v
Sternwhich Resulted lu a unan¬
It was probably undertaken as a
gesture to show Britain's willing¬
normal war balances are first con¬
trustees
America,
•
sterling convertible unless the ab¬
of ? Managers
dispute between the Finan¬
cial Employees Guild, United Of¬
between the
two parties is so wide that the
mission Is foredoomed- to failure.
of
vergence
major Ex¬
The
of India is not prepared to agree
to any substantial cut.
The di¬
Agree¬
two
meetings, and
honduct quar-r
terly. inspections of, the books of
the secretary-treasurer,
4 ; C; j
indicate that the,new Government
Washington"
the
of
the .Board
on
three
unless
ac¬
of If the
each
activity 'between
afford
cording to the
Loan
to
which is responsible for all Union
India
to be effected
July
a.m.
changes, one for the Commodity
Exchanges and one for the mem¬
ber firms), ten representatives to
is prepared to agree; to a
drastic scaling down of the total.
And so far everything seems to
by
8:30
.
„
im¬
restoration
v-1
of the
funding mission
is
of
considerable
importance
from the point of
view of the
prospects of the convertibility of
Sterling. • *
•
<
It would be idle to pretend that
the outlook for an" agreement is
This is
portant
toward
the
A'."
the
on
ac¬
first
from
Officials to be chosen in¬
clude shop committeemen, shop
stewards, four administrators (one
y 'Basle, Switzerland.—'A British mission is about to leave for India
India's
last
6:30 pun.
*
held
Will
and
in order to negotiate the settlement of the £ 1,400,000,000 of blocked
sterling
by-laws adopted
since affiliation with the AFJj.
vertibility of sterling.
ances
.
| out under the terms of the hew
probability of this
and concludes premature restoration of convertibility of sterling
would lead to its early abandonment. Sees British endeavor to
obtain from
Employees
today in a gen¬
reorganization being carried
constitution and
By A. W. ZELOMEK*
Economist, International Statistical Bureau, Inc.
The United Financial
eral
American Business in 1947
,
will elect officers
Einzig points out restoration of the convertibility of sterling,
required by the Anglo-American Loan Agreement, is dependent
ability of British to persuade nations holding blocked sterling
balances to scale down their claims*
|
AFL Affiliation
By PAUL EINZIG
r
271"
THE COMMERCIAL & FINANCIAL CHRONICLE
Volume 165 f Number 4550
or
coercion and he
Anchorage Homes, Inc. A & B
cannot
practice fraud. He must be honest
In
representing
what
he
has
Polaroid
to
^Iseliy whether by^ adveftising; of
BOUGHT
word: of mouth. He must scrupu¬
lously live up to his promises and
contracts. All competition must ex¬
ist within a framework of law
and order which
protects every¬
one alike from the
coercion, mis¬
representation
or
SOLD
QUOTED
•
:
■
•
Corporation
Raytheon Mfg. Co. $2.40 conv.pfd.
HAYDEN, STONE & CO.
BOUGHT—SOLD—QUOTED
I
MEMBERS: NEW YORK STOCK EXCHANGE
broken promises
of others. But the most
prosperous
jeconomy
ZZZl 'V
•
is the: freest;
and
25 BROAD
the
,
LONDON *
*An address by Mr. Hazlitt be¬
fore National Retail Dry Goods
;
Association, New York City, J an.
13,1947.
*
*
K
.
MANILA
*
*;
'
STREET, NEW YORK 4, N. Y.
CORRESPONDENTS IN ' *.
-
-
;
AMSTERDAM
BUENOS AIRES
•
w
.
1 " '
,
'
New York Hanseatic Corporation
'
SHANGHAI
MONTEVIDEO
AND OTHER EUROPEAN CITIES
120
.
-
BROADWAY, NEW YORK S, N. Y.
:
..
Telephone: BArclay 7-56G0
Teletype: NY 1-583
THE COMMERCIAL & FINANCIAL" CHRONICLE
272
dend
issues — Federal
Light &
Traction, Middle West, and United
Light & Railways. Columbia Gas
& Electric, which is earning about
the
same
the
as
new
Central
Truman u Short-Range"
Economic
&
South West, has recently inaugu¬
dividends at the rate of 60
rated
cents
Central & South West Corporation
:*
Central & South
company
system.
Co. is
West Utilities
Co;, Public Service Co. of Oklahoma, Southwestern Gas & Electric
Co., and West Texas Utilities Co.—operate within adjacent areas
and constitute an integrated system. The parent company is over¬
capitalized, and there is also a<^
problem regarding possible subor- ' West preferred receives stock for
dination of the Middle West in¬ both the call price and arrears.
terests which includes holdings of
In order to provide cash pay¬
preferred stocks as well as com- ment for preferred stockholders
mon.
'
who do not accept the exchange
.7
■>
Accordingly, a number of inte¬ offer, the number of shares re¬
gration plans have been submit¬ quired to raise this cash will be
-
,
.
ted from
time to time.
offered at competitive
43%
of
filed
early in
the
common
1946
stock),
and
was
Service
Public
ap¬
Service
Central
and
American
holders
will
re¬
ceive
eight shares for each share
publicly held (this is a negligible
plan, which proposed the sale of
amount); while the
block
a
was
of
additional
the
of
successor
apparently deferred last Fall
due to market conditions! Middle
West decided
some
weeks ago
to
regardless of the market,
strenuously opposed
by counsel for the minority stock¬
holders, who felt that this would
penalize them. An appeal to the
go ahead
but this was
approved
effective,
the plan did not prove
but the fight will be
the
SEC
when
final
hearings are held on the
financing, about Jan. 29.
new
The
to
program
now
stock
flexible
amount
(based on a
rather complicated formula), depending principally on the public
offering price and the resulting
number of shares required to dis¬
pose of the preferred issues.
a
Federal court which had formerly
carried
common
of Central & South West receives
common
company,
De
Gasperi's Mission
ItalyV Premier
The following is the portion
the
$100 mil¬
lion credits from Export-Import
Bank, as well as potatoes, wheat,
coal, and ships. State Depart¬
ment optimistic about our joint
trade revival. Unblocking of her
secures
results
Public
proved by the SEC and by a Fed¬
eral court.
Consummation of the
stock
Fruitful Results of
WASHINGTON, Jan. 15 (Special
to the "Chronicle).—Among the
& South West Utilities.
was
a
duction in taxation
ican
The final
which represented a com¬
promise between Middle West and
a ; minority
group
of - common
stockholders (which own nearly
]
units;
bidding on
Jan. 29. The remaining stock will
then be distributed to the pub¬
licly-held common stock of Amer¬
plan,
|
surplus of government revenue over expenditure, with re*
only "as soon as possible"; and a means of
making adjustment in wages and working conditions without
crippling strikes.
! currently selling
11% to yield about 5.26%.
important subholding
an
in the Middle West System, comprising about half of that
The four operating subsidiaries—Central Power & Light
Program
In Economic Report, President calls for balance between wages
and prices; expanded social security ;,a million additional housing
and £ is
around
Thursday, January 16, 194?
assets in
prospect.
-
text
President
of
oi^articles
Report
to
Congress
dealing with short-term program
recommendations:
;;:v My
recom-
m e
range
But
"
orderly
signifi¬
Minister
immediate at¬
able
tention from
price
the
and
a
more
last
as
world food sup¬
as
consumers
ample supply of dur¬
goods to purchase. Existing
supports afford protection
against
Congress
from
that
realize
plies increase and
Gasperi's mission to Washington
is the Expert-Import Bank agree¬
ment to earmark for Italy, $100,-
timely and
it will help sustain
them.
must
fall somewhat
well.
find
Prime
a
year's exceptional farm prices will
they merit
of Italian
makes
business
If
way,
Farmers
long-
as
line.
of
out
markets rather than destroy
ndations
have
clothing, house-
furnishings,
and
building
ma¬
terials, whose prices have risen
these reductions in
short-
range
of food,
Truman's
Economic
cance
De
-
a severe
price decline,;.'
Labor, on its part, must recog¬
nize that high volume at low costs
and low prices requires high pro¬
the
000,000 of credits for use during people as a
1947 for raw materials, fuel and whole because
of their influrestocking purposes. Italy has re¬
ence
upon
cently obtained promise of 100,economic con¬
000 tons of Maine potatoes.
The
ductivity and the absence of re¬
strictions on production.
For its
well as that of
country at large, labor should
advantage
own
President
Truman
ditions in 1947.
the
as
War Dept., to relieve distress in
refrain from demands for exces¬
Italy, has just diverted six wheatsive wage increases that would re¬
1. Prices and Wages
laden ships, which were headed
Removal
of
emergency
price quire price increases or would
for Germany. Italy will get more
and wage controls has restored the prevent price reductions that are
Based on data contained in the American surplus ships, hopes for
main responsibility for prices and necessary to sell the capacity out¬
red-herring prospectus, the share a substantial relief grant from
put of the product.
earnings on the 6,600,000 shares Congress and expects early an¬ wages to business, labor, farmers,
Management in turn
should
of common stock of the new com¬ nouncement of remission of the and consumers. The Government
recognize that increased produc¬
half billion. dollar obligation for can point out dangers seen from
pany have been as follows:
tivity permits wage increases ii*
10 Mos. End, Oct. 31, 1946—$1.08 disease and "unrest" supplies dis¬ the perspective of the whole econ¬
some cases as well as price re¬
omy,
but the correctives must
tributed by the Army in Italy.
Calendar Year;
%
ductions; and that wages and sal¬
largely be applied by others.
1945
.65
A State Department press an¬
aries need to be raised where they
Business should reduce prices
11944
.65 nouncement
of
today discloses
have lagged substantially behind
wherever
possible in order to
1943
.73 that this Government has prom¬
the increase in living costs in the
bring about the necessary increase
1942
;
.71 ised
Italy to do everything pos¬
in consumer purchasing power to past few years or where they are
1941
.57
-
.
^
——
_
under
.
way
—
provides for depositing the prior
lien preferred
stocks and-pre¬
ferred
West
stock
Central
of
Utilities
&
South
together. with
the
preferred stock of American Pub¬
lic
Service
(a subholding com¬
pany which will vbe merged in
forming .the new Central ; and
South West Corp.). A nationwide
group of banking houses has been
formed under the management of
Lehman
Brothers
Freres
solicit deposits for the
to
and
Lazard
exchange program. Peculiarly, the
exact exchange terms are not yet
known but each share of the sev¬
eral
preferred stocks is to receive
sufficient
the
of
new
common
sible to increase wheat and if pos¬
-
The management has estimated
earnings for the calendar year
1946 at $1.25 (which seems con¬
servative) and forecasts that 1947
sible coal shipments. The Depart¬
ment's announcement in part:
should show about the
countries thus far
same
re¬
sult. : Dividend? are to *foe initiated
at the rate of 70 cents per annum
(35 cents will be paid about six
filing of the agree¬
ment of merger).
The minority
stockholders*
group
had
been
hopeful that at least 80 cents
Would be paid, but apparently the
management desires to retain a
months after
substantial proportion of earnings
for new construction, etc.
"It
considered that the
was
vival
trade between
of
touraging,
reached
the
was
most
agreement
re¬
the
spon
of
1938.
A
The
'
Italian - officials emphasized their
of
and agreement
the desirability of
barriers
trade
reached
on
especially needed in
of goods such
as many
But
just
universal
ern
there can be no
uniform rule to gov¬
as
or
price reductions, so there can
Symposium
on
1947 Outlook
Twenty-two economists give views at Industrial Conference Board
Forum. Majority see soml recession in 1947, but generally agree
mild setback of early 1920Y rather than
effect will approximate
agreement with the principles of
the
program
for expansion of
world trade through a reduction
was
case
re¬
em-
was
as
vivendi
modus
are
Price
tw.o
tl$£t negotiations should
as
markets.
their
ductions
possible for a
commercial treaty to replace
begin
new
and
the
substandard.
bolster
depression of 1929.
severe
Twenty-two of the nation's
economists discussed "The Business
Outlook for 1947" at the latest Conference Board
Economic Forum on
Jan.
13, sponsored by the Na-3>
—
"
participation in this, pro¬ tional Industrial Conference "SOMEWHAT LOWER LEVEL"
tail offering price) to equal the
gram at the earliest possible op¬ Board.
AHEAD
redemption price of the stock.
Some of those who took part
portunity.
A. D. H. Kaplan, The Brooking®
Any accrued dividends on Central
"It
was
further agreed that in this "Evening with the Econ¬
Institution-^ see for early 194T
& South West prior lien preferred
and
their summarized not what we should call a depress
within the framework of the de¬ omists,"
Stocks and on American Public
opinions on the business outlook,
sion, but at least no advance, and
finitive peace settlements there
follow;
Service preferred are to be paid
an
probably a level somewhat lower
average of about 4.7%,
but should be a general settlement
than we have now. With regard
in cash, while Central & South this
included
several
low-diviSEES NO SERIOUS DEPRES¬
between the two governments of
to the second half of '47, even if
SION AHEAD
there's softening in agriculture—
financial
and related problems
Milton Gilbert, Chief, National
we had falling agricultural prices
S arising out of the war. The United
Income Unit, United States De¬
with brisk general business Irr'the
Trading Markets in Common Stocks
States Government indicated that, partment of Commerce (Discus¬
1920's—industrial activity should
:*V"' v' kv'sion Leader)—There is no possi¬
subject to mutually-satisfactory
be substantially higher thaAtthe
♦Bates Manufacturing Co.
Liberty Aircraft Products
'agreement on this settlement.
It bility of a severe depression like second half of 1946. But I don't
that of the early 1930's. The ac¬
Bausch & Lomb Optical Co.
Rockwell Manufacturing Co.
would
be
prepared
to waive cumulated deficit of both con¬ expect the first half of 1947 to
be up to the second half of '46k
♦Crowell-Collier
claims for repayment for food and sumers* durable ■' goods and busi¬
'Tennessee Gas & Transmission
The current scene discounts sta¬
relief supplies furnished the Ital¬ ness investment are sufficient to
"Foremost Dairies
U. S. Potash
tistical analysis. We are dealing*
;
prevent that. So, I think the re¬ with mass
ian people through military chan¬
V/;-'..:.
V
;v
\ 7 -S
psychology — possibly
cession will be more in the na¬
nels prior to the period of UNRRA
economic psychology, but psychol¬
^Prospectus on Request
ture of the 1920-21 experience, but
'• '/■
•
1
;
'
•
operations.
Discussions will be¬ not anything like so drastic. The ogy rather than economics in.
quantitative terms. 1 am impressed
gin as soon as possible and will main forces which■ will limit the
with the retarding influence ;• of;
include reference to the question decline and prevent it from spi- the
poison—I mean in the man¬
of the unblocking of Italian assets raling are:
agement-labor relationship—that
ESTABLISHED -1879
*
we must get out of our current
in the United States.
1. Prospective
government sup¬ business
system. I am hopeful
"In the field of post-UNRRA
port of agricultural prices.
that it will be less virulent after
relief, the Prime Minister was in¬
2. The probability that wage rates the next six months, so that we
formed that Italy's needs will be
Consolidated Elec. & Gas 6% Pfd.
may rise to the potentials that are
wjllprove more rigid than they
in the total statistical picture,
included in the direct relief pro¬
stock
(valued
,
-
at
the
initial
re¬
Street
opinion
to be
that the new stock may be offered
somewhere between 11 and 12,
which prices represent yields of
6.3*3% and 5.83%. As of recent
date representative holding com¬
pany stocks were selling to yield
•
,
.
appears
Italian
.
Paine, Webber. Jackson & Curtis
■
-
,
,
%
were
Illinois Power 5% Pfd.
New
gram soon
England Public Service Pfds.
Portland Electric Power Prior PfdC
to be submitted to the
He
Congress.
that
this
was
also assured
government
expectation
has
of increasing
uled shipments
29
&
Co.
BROADWAY, NEW YORK 6, N. Y.
Direct Wire to
Chicago
of
of wheat to Italy
essential
so
as
to meet the Italian
requirements
two important
for
these
commodities."
The
expenditures.
magnitude of the accumu-
"i lated (deficits
in
goods field.
5.
The
durable
the
-
-
high level of government
expenditures which can be an-
(V ticipated
future.
"LIKELIHOOD
cushioning any de¬
cline in consumer
4.
and
possible to increase, shipments
coal,
of unemployment in¬
in
sched¬
fort will be made to maintain,
if
surance
every
beginning Feb. 1; also, every ef¬
Gilbert J. Postley
in 1921.
3. The effect
for
the
immediate
OF
RECESSION IN
Edwin
Dun &
there
George,
Economist,
Bradstreet, Inc.—Although
is
cession
B.
REAL
'47"
likelihood of
or a
a
real re¬
settling period during
1947,1 do not think that it can go
very
far because of the importu¬
nate demand that underlies
(Continued
on
page
it, and
307)
'"
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4560
Volume 165
Offers Bill to Give Private Lenders
Progress, but No Dlnaon
By
■
U.
S.
Rep. Howard Buffett (R., Neb.) introduces
VANDENBERG*
HON. ARTHUR H.
cial institutions and other private
upholds bi-par¬
tisan foreign policy and backs international defense against aggression. Lauds U." S. participation in organization and progress of
United Nations, but points out organization is not perfect instrument
for insuring peace# Says we are prepared to disarm, if American
proposals regarding atomic energy are accepted. Sees need of
future international economic cooperation and forecasts U. S.
financial aid for rehabilitation.. Urges friendly but firm policy
toward Russia in protecting our system of free enterprise, and calls
for full support of Chiang Kai-shek under new Chinese constitu¬
Chairman of Senate Foreign Relations Committee
j
•
i
Wants
tion.
a
forum
of
is
of
forces,
one
beat
can
the
on
| of
anvils
mutual
dersta
n
d i
n
AN ACT to
v
j
the world.
council chamber—and adverseries
"talk
things
out"
instead
of
"shooting them out."
It
was
s
events have given us the tremen¬
dous responsibility of a spiritual
leadership
good fortune to coin
the United Nations
my
phrase
a
at
address by.
denberg
Council
which
most
of
the
Senator Van¬
it
enacted
Senate'. and
by X the
House
before
the
Cleveland
World Affairs, Cleve¬
there will
ed by adding the following:
we
By MARK MERIT
.
Were it not for the fact that the
human mind has developed a toler¬
ance
"digest" since the beginning of the
the
nomic
BOSTON, MASS.—Theodore T.
Ludlum
are
and
Frank
World
!
rectors of the
usual
Affairs
is .of
think you, too, will be interested in
-
the story
MASS. — Freeman
Boynton and Paul G. Douglas are
Morgan
with Edward E. Mathews Co.,
cerns
First Boston Corpora¬
with The
53 State Street.
tion. 1 Federal Street.
,
r
in the United States.
>
"Diligence is the Mother
.;...
;
'
'
=
•]
V
.."XV
Twenty-one Billion Dollars!
■■
■;
;■
the facts
■X.'
;X-'"
me
to
participate
in
this
;ph
but
another comparison. The
tele-
•
nin g to
o
vised
his
ciates
world
part,
That's
'x
■'-v>x.^^'X^X^xxK'-rx/-^:X:
■
to pay
many
And please remember that of the
dealers
total of 21 Billion dollars in taxes
•
collected since
why each member of our various departments
Billion went to the various States,
Counties and Municipalities. The
Informed
on current
expenses
go
really does tangibly help
friends-—and ourselves,
well. The
as
practical assistance for yourself
tomers, put
our
need
of your
generation
our
is
ica
:
at
.
.■
^Xjv.'i
dren, and in
taxes.
If
war.
we
realize
that
it
is
>
R.W.
to
much
Pressprich &Co.
.
68 William Street
very
'
This coming of age anniversary
the
Cleveland
Council
on
*
An address delivered by Sec-
•
retary Byrnes before
iland
Council
on
the
Cleve-
World;
Affairs,
Cleveland, O., Jan. 11, 1947. T:
."i.
•J
'.i
,
ii
..
'IV.
*
-
t.
•
'uuuk
■
i
a-
standards
:
a-
.*1
I-
life
until
we
a
V:':'
.".
Teletype NY 1-993
'
X
r
.
X
;
Members New York Stock
;.
X
X.
"Exchange
We
can never
problems of
a
GOVERNMENT, MUNICIPAL, RAILROAD,
PUBLIC, UTILITY, INDUSTRIAL BONDS
give
|
'
(Continued
FREE —96-PAGE
\ AND INVESTMENT STOCKS
postcard
deal with the
page
'303)
x
them-;
!
or
schenley
BOOK-Send
a
letter to mark merit of
corp., dept.
distillers
ISA, 350 Fifth Ave., N.Y. 1, and you will
convalescing world
on
other industry's products.
termed "Prohibition"!
r
receive
:
as
escapably heavier, income tax we
would all have to pay, whether we
partake of alcoholic beverages or
not—if the equivalent of the huge
revenue now going to the Govern¬
ment, went into the long pockets
of the boot-legger, as it did in that
late lamentable period, carelessly
201 Devonshire Street, BOSTON 10
£
chance
to live again under conditions of
peace.
^
.
of
the peoples of this world
col¬
is collected from the sale
It is not difficult to realize
Telephone HAnover 2-1700
NEW YORK 5
as
of any
r
-
*
\ of
'
'
income tax—more than twice
much a part of the world when
they not done so I would have the world is
at peaces
•
missed the greeting you have just
Our first task is to liquidate
given me, a greeting so cordial
that it has warmed my heart and, the war. We cannot think con¬
YI tell you, I shall ever treasure in structively about the building of
lasting peace and about rising
my memory.
'
•
beverages^ such as distilled spirits, i
war
must
it
.beer, wine, etc.—-is the larg^t
Iwith the exception of the Federal
the
are
instances
lected from the sale of alcoholic
the
have
when
some
results in the reduction of property
this offer to the test. You'll be glad you did!
'
world
into the general States' funds
The amount of taxes then,
and to build enduring
peace, every community in Amer¬
James F. Byrnes
Had"
the
National Govern¬
cation, Public Welfare, Old Age
Pensions, Aid to Crippled Chil¬
cus¬
or one
our
and the money is variously ear¬
marked to defray the cost of Edu*
dealer
next time you
of
ment. The States' and other taxes
efficiently.
This service
Repeal, about 6 Y% {
Federal Revenues go to defray the
trends
and prices, and to pass along that information
promptly
and
for the Atomic Bomb Projectf
Tx.-XX- -'X.
day in and day out !
makes it his business to be
\
of
prevent
I
I am i glad they
tinsisted.
part
a
asso¬
come.
X-X', "•■'
'
of
America
learned that they are very much
wished
to
me
X
■
than
communities
Emeny
and
proved that diligence in obtaining all
securities and market conditions results in
.
we serve
com¬
in
a
Twice
that
me
included) from the sale of alcoholic
beverages amounted to over 2 V%
Billion dollars-r-more than enough
as
land is
Cleveland,
^Mr. Luce ad¬
,
,Dr,
;
FederaJ
collected in 1946 (state,
county and municipal taxes not
taxes
the affairs of the world of
which the community of Cleve¬
program.
After
on
gpod fortune both for ourselves and the
ership
wish
has
ence
?
.
.....
"Y^TTE AGREE with Ben Franklin—for our experi•
<
Now let's look at 1946 alone—and
v
Poor Richard's Almanack
f
munity of Cleveland has come to
regard world problems not as the
affairs ; of r far-distant ■ countries,
the
of Federal, State,
from the
all alcoholic beverages for the
past 13 years {since Repeal), was
equal to an amount sufficient to de¬
fray the entire cost of the Federal
Government for the first 120 years
of its existence, or to be more exact,
from 1789 to 1909. The amount?
pro
Cleveland
Council
So we'll begin by informing you
I
sale of
Council would
the
con¬
and child
arid1 Local taxes collected
significance. Under the lead¬
of
because it actually
every man, woman,
that the amount
eco¬
more
Alcoholic
Beverage Industry since the begin¬
ning of Repeal—13 years ago. We
BOSTON,
C.
<$>-
v
a
tells the story
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
.
cum-
re-action to
First Boston Adds Two
Join E. E# Mathews Co.
After the announcement on Tuesday night of my resignation as
Secretary of State I advised Mr. Luce that I doubted, whether under
the cir
our
was
of tax collection by the
cooperation..
stances the di¬
This
sheaf of figures which
original loan, discount, rediscount, or guaranty."
of Good Luck"
Favors international
of
war.
proportion to the amounts they respectively advanced for
Retiring Secretary of State
truce.
for figures, it could not accomr
modate itself to comprehension
tion in
Retiring Secretary outlines U. $. policies to promote world peace
and security, and expresses optimism regarding present status of
agreement among big Powers. Pleads for a common law of nations
which will draw up rules of peace rather than of war. Says we
have joined with allies to put an end to war, and reiterates desire
to settle problem of control of atomic power before committing our¬
selves to disarmament. Scores Argentina's position with respect to
hemispherical defense and concludes peace in this interdependent
a mere
fellow
"Astronomic" Arithmetic!
By HON. JAMES F.BYRNES *
than
our
SCHENLEY DISTILLERS CORP.
the vast "arithmetic" it has had to
Promoting Peace
more
advertisement which
appear an
hope will he of interest to
Americans. This is number 153 of a series.
volving such participation, but the bank and the participating private
lender or lenders shall share any loss resulting from such a transact
Will Do Our Part in
world must be
where
NOTE—From time to time, in this space,
"(c) No loan, discount, rediscount, or guaranty
for an amount in excess of $5,000,000 shall be made
unless the bank (1) requests, through normal
f (Continued oh page 286)
land, Ohio, Jan; 11, 1947.
Broadway,
SCHENLEY DISTILLERS CORPORATION
"the United States replies
gram,
25
Embassy,
of
peril.
Tonight, according to your
on
and physically
1132,
New
York
forms are available.
world is eager to have us grasp
and which we would desert at our
own
•An
erlands
.
.
States
Room
\
Representatives of the United States of America
in Congress >.assembled, That section 2 of the
Export-Import Bank Act cf 1945 (U. S. C., 1940
edition, Supp. V, title 12, sec. 635 (b) ), is amend¬
aspiration at every hearthstone in
Here in your "town
supreme
meeting" the voices of global hope
«j «.
.
.
potentiality Of have joined in this universal
A. H. Vandenberg
^he organized
prayer.
The voice of our own
United
; Na¬ America must rise above them
all,
tions.
War
will : remain
at
a riot
only
because
our
people
heavy discount so long as interna¬ deeply share this dedication, but
tional controversy
stays in the particularly
because
time
and
1
Import Bank of Washington.
,
Be
Peace with justice is the dearest
and goodwill.
Indeed, this is
the
provide for participation by private
lenders in certain loans made by the Export-
seems to survive.
I pro¬ financial channels, offers for participation from
phesied that the General Assembly private financial .institutions and other private
would become "the town meeting lenders, and (2) accepts, for participation to the
of the world."
In one year it has extent of not less than 25% of the total of the
Howard Buffett
funds to be advancedv by way, of loan, discount,;
become exactly that.
So long as
the "town meeting" meets, reason rediscount, or guaranty; that offer or that com. ..
is calculated to outweigh force. bination of offers which
is, in the judgment of the Board of Directors;
Sox long as - this "safety valve" most
advantageous to the borrower, endorser; acceptor, obligor, or
works the world's "boilers" are
guarantor.
The bank shall hold all security in any transaction in¬
not
g
United
during en¬
occupation and of which they
lost possession, should file a re¬
port of such loss on or before Jan.
31, 1947, with the office of the
Financial Counselor of the Neth¬
calculated to explode.
un-
Jan. 15 that
emy
.
swords -i into
plowshares
•
on
located in the Kingdom
which
major
which
the
the
Congressman Howard Buffett (R., Neb.) on Jan. 8 introduced into
following bill to provide for participation by private
lenders in all loans in excess of $5 million:
>
San Francisco Conference in 1945
reciprocal
candor
guaranty in
or
.
it has produced from all quarters of the globe in
of interna-^
tional opinion.
This
process
loan
the House the
the powerful program
a striking exchange
upon
any
\x
federation of German states.
I congratulate the Cleveland
lenders
announced
was
claim beneficial ownership of se¬
curities issued and/or payable in
of $5 millions.
excess
Securities
persons, not resident in the King¬
dom
of
the
Netherlands,
who
require
to
measure
It
Owners of "Lost"
to
Dutch
Export-Import Bank to offer for participation from private finan¬
from Michigan
Senator
Notice
^
Participation in Export-Import Bank Loans
"All's Well" for Peace
w
iJ
273
1
of
a
96-page book containing reprints
earlier
articles
on
various
subjects.
THE COMMERCIAL & FINANCIAL CHRONICLE
274
Grinnell
Dealer-Broker Investment
Bulletin
ion
comment
Treasury Fiscal Pol¬
on
York-5, N. Y."-
.
Corp.—De-!
First
Colony!
»■
.
^commercial policy provisions; and of meeting's general
Scott,
Chapman &
cited.
(axe
r'
v
Hydraulic Press Manufacturing
Co.—Detailed
■
-
~
1
i
air trans¬
port companies, and a
comprehen¬
railroad securi¬
ties—Stanley Heller &
Co.," 30
Pine Street, New .York 5, N, Y.
Summary of
—
the
'
•
'.
•
"
.
'•
1
V'' 1
Fashion
Esky-Pads—Memorandum pad Park, Inc.; Upson Co.; and Osgood
girl on the cover—
B. S. LichtensteinV& Co.* 99 Wall
Guide to the Perplexed—a chal¬
lenge to the barrage of pessimist
statements—bulletin with a
tic
list of suggested stocks for income
appreciation—Strauss
Bros., 32 Broadway, New York 4,
N. Y.
Railroad Developments—Memo¬
events—Vilas
current
of
&
Street, New
Hickey, 49 Wall
York 5, N. Y.
:?"$
&
Co.,
120
.
'
\
V
,
f
ize
&
Maine
&
ob¬
$ reflect
•
;
foreign exVchange con¬
trols
s
!•_
^
^
v
-> ,
,
Herbert M. Bratter
Haupt &
—
Co., Ill
;
-
controls
are
rect
.
alternative
Broadway, accomplishing the
6, Nr %
to
was
between
.
tion and that of
variety of di-
-i
Study"M
the contrast
the
and
overstatement to
no
the >epresentatives b£
(and of ,the Bank>
played a leading role at the Con¬
ference." In this regard, he adds»
; u p o n
fact that
the
it is
—
say *\*thart
the Fund
their posi¬
other
observers
marked."
was
trade
means
Charter Provisions Important t<^
of
Fundi
It
end.;
same
insure the maximum de¬
For the Fund, the most impor¬
tant provisions of the proposed
New
England
:•
Nunn Bush: Shoe .Co, — Late
data iri the "Business and Finapr
■
cial Digest" — Loewi & Co., 225
E^st Mason Street, Milwaukee 2,
Wis.;;,;vf
Railroad
Walter J. Connolly &
Co., 24 Federal Street, Boston 10,
Circular
these
Whart¬
Steel; Purolator Prod+
pets; Upson Corp.; Alabama Mills;
"Boston
Trade and
Co, and to safeguard its own preroga¬ ITO charter were those of Articles
tive^ that the Furid sent three ob¬ 20, 22 and 23, relating to quanti¬
common stock—Analysis—Greene
& Co., 37 Wall Street, New York servers to the .October-November tative restrictions. The Fund was
(Continued on page 305)
5, N. Y.....; .> ; •
vr
< rqeeting in London of the Pre-
Empire; Lanova Corp.; Mo¬
Iron
on
••
Middle West Corp.
Northern
W. L. Douglas Shoe Co.; Hart¬
hawk Rubber; and Taylor
:
'■*
s,M
Fund
this, one
only to
needs
gree of cooperation with the ITO
Broadway,
.
ford
i
'
New York
New York 5, N. YV
Also available are memoranda
on
of
Two
F. Luthringer .-— who is American
alternate executive director of the
Fund. To real-
-
■
Ira
DiebQld;;Inc;;#;®
randum
'
Asplnook Corporation—Circular
-—Ward
and capital
j
,
Wor Id
the
•
Carey Mfg Co.
with the Varga
Street, New York 6, N. Y.
on
Employment.
,
iv ;.,v^
Engineering;
national Conference
ITO. The same servers have now made an ex*
applies tocer- tensive report ,td the Fund.
I;
< tain
aspects of
According to the chief Fund
t the ITO and observer, at;.London, Mr.. George
.
Wellman
paratory Committee of the Inter-:'
and
proposed
;•
Betrola—Memo¬
International
Argo Oil Corporation—Descrip¬
situation and outlook in "Fort¬
'■
tive circular—Seligman, Lubetkin
Lime; Cola Co.—Late .data-—
nightly Market and Business Sur¬
& Co., Inc., 41 Broad Street, New Thornton, Mohr & Co., First Na¬
vey"—E. F. Hutton & Co., 61
York 4, N. Y.: tional Bank Building, Montgomr
Broadway, New York 6, N. Y*
Also available are circulars on ery 4, Ala.
_
FAO
the
islation on junior
■V
'
.
inevitable.^
>.This is true of
..
Electric Utilities
.
creating a global structure for international cooperation in
the economic sphere v a certain overlapping of functions has been
developments
randum—Buckley Brothers, 1420
in each branch of the industry—H.
Walnut Street, Philadelphia 2, Pa.
Utility Shares —; Basic outlook
C« Wainwright & Co., 30 Pine
Also available are -memoranda
—Ralph E. Samuel. & Co., 115
Street, New York 5, N. Y. , ^
on Gruen Watch Co.
and Philip
Broadway, New York 6, N. Y.
sive review of recent
■■■■■
.
In
'
.
with similar data for 12
accom*
plishments. Intergovernmental commodity arrangement provisions
I
:
.
Analysis—Comstock
Railroad Reorganization Securi
& Co., 231 South La Salle Street;
ties—Circular reviewing the -his¬
.Aviation Industry Outlook Chicago 4, 111.T
'
v
:
v ?
J
Study including tables of financial tory and status of railroad reor¬
Also available are analyses of
statistics covering 12 aircraft man¬ ganization legislation and outlin¬ Long
Bell
Lumber
Co., a and
ufacturing
companies
together ing the probable effect of the leg¬ Miller Manufacturing Co. s
!
-
-
,
•
Lamston, Inc.
*
New
v
5, N. Y.
v•■
Also available is air analysis of
Stratford Pen Corp., and M. Hi
of
leaflet
a
analysis
r'
Merritt
14 Wall Street,
&>Co.,
is
By;JHERBERT,M..BRATTER;;,^:;:'
Correspondent notes that, recognizing growing trend in inter-agency
overlapping, International Monetary Fund sent three observers to
recent International Trade. Organization meeting in London.
Quotes
,these- observers' views of restrictions safeguarding members; balance of payments; of retaliatory restrictions; of escape clauses; of
Corp., 52 Wall Street, New York
icy;
Cities
Service
Co.;
First
Mortgage
Railroad
Bonds
and
market—John
the .stock
on
H. Lewis
available
Also
Including
—
comparison of manufacturers' unfilled orders and monthly' opin¬
,
tailed
interested parties the
to send
Aviation
Hungerford Plastics
mentioned will he pleased
following literature:
It is understood that the jirms
'
Monetary Fund and IT0 !
Manufacturing .Co.,
Rockwell
Recommendations and Literature
■
The
f.
§
Thursdays January 16,194^
item
Corp.—Research
—Goodbody & Co., 115 Broadway,
New York 6, N. Y.'
; Also available is a research item,
on
■
C
World Bank and U. S.¬
Canadian
—.
Industries
Pathe
Cooperation
Analysis
By EUGENE MEYER*
discussing yield and possibilities
of price appreciation — Troster,
formerly President, international Bank for Reconstruction *
f,
A. S. Campbell & Co.—Memo¬ Currie^-fe, Summers,
Railroad Reorganization Devel¬
74 Trinity l "
* i
C1. '
'r g f
'and Development *
■' --t
"
"
: New
York Hanseatic Place, -Ne^v York 6, N* Y.
opments — Memorandum — H. randum
t ♦
'Prominent financial executive reiterates his reasons for resigning *
Hentz & Co., 60 Beaver Street, Corp.; 120 Broadway; New York
"as President of.International Bank, asserting Bank Is how fully or-^
New York 4, N. Y.
'Y.;
J
5, N. Y. •
~
Portland Electric & Power Coi
Also available is a memorandum
ganized and ready for business and his service In launching institu- * ''
—Analysis—Ira Haupt & Co., Ill
on Title Guarantee & Trust Co.
tion is completed.. Points out Bretton Woods objectives, and oxv
Broadway, New York 6, N. Y. • !
Mass.
—
.
.
CARTER H.C0RBREY&CO.
Association
National
Member,
Central Illinois Electric
S. La Salle Street,
—
Pacific Coast,
'
:*■
'For
.
Central
of
-y
and
study
SECONDARY
DISTRIBUTION
cago
1
CHICAGO 3
La
Salle
650 S. Spring St
'V
Michigan 4181
LA 255
—
Office
Manufacturing Co.-^-
Analysis—Steiner, Rouse & Co.
25
Broad Street, New York 4
Colorado Milling and Elevv Co.
Broth¬
ers,
1420 Walnut Street, Philadel¬
phia 2, Pa.
Also available
•Wells-Gardner & Cq., Com,
Snap-On Tools Corp., Com.
Carey
Philip
.
Schenley Distillers Corporation
—Brochure of articles they hav«l
memoranda
Watch
Gruen
the
on
-
.
are
and
Co.
Manufacturing
Chronicle-Mark Merit, in care ol
been running in the
Co.
write
•Jessop Steel Pfd.
to
Schenley
Distillers
Corporation
D. L. & W.—Lackawanna RR.
•Seismograph Service Corp.,Com.
•Prospectus Available
on
Request
>
of New Jersey
350 Fifth Avenue, New York 1;
Analysis — B. N. X*:i:§§!; 1'
Broad Street,
—
W. Pizzini & Co.* 25
New York 4, N. y.
'v'
Paal H.Davis &Uo.
Established
1916
,
Members Principal Stock Exchanges
Chicago Board of Trade
" '
j:
10 So. La Salle St., Chicago 3
•'
t
v
f,w
"
'i
.
„;
? »»* V-
<
United JBrick & Tile Co.—Bul¬
'
n
but, I ;
delighted;" •
have
done in advance of actual lending:
operations. The Bank
the
Utica & Mohawk Cotton Milk;
Federal
Water
&
Gas
Inc.
Corp.—
—
Circular
—
opportunity toco
express
ating activities,
-my ;
operation I
ceived
tives
-
of
,
tions.
Bank
in
it
the
>
We Maintain Active Markets in
felt
Central Public
•
-
While I do not
CHICAGO
H. M.
System
CG 537
;
do, Z
appointed.
^
-J V -i..
tors
the
for
reason
stated" in
Telephone State
8711
*
Pittsburgh
my-withr
my
letter
to
rea¬
-
'
was
neces¬
the
the real
was
transition-from war to peaces
that
At
.
/
time I was Managirigf
Director of the War Finance Cor¬
poration,
,
and the
.
staff and had been
600,000 and large; borrowing
pacity. I proposed
so
far
as
this could be
export-bank
*An address
by Mr. Meyer be-
fore^the Canadiaft cClub,
-
Canada, Jan; 13, 1947.
•
-
•—
not to
into
make
foreign borrowers but fo
American exporters or to institu-
Toronto; Mtions
-V
ca¬
an amendment
to-convert -the' Corporation
loans to
Minneapolis
Allies by the
sary,
an
:
Teletype CG 273
,
Philadelphia
our
Government; It
aV; government : owned
only reason. 'The
organization; of the Bank" corporation with capital of $560j-
formulated
Incorporated •-L tl M A
of loans to
S.
some
had been
135 So. La Salle Street, Chicago 3
New York
ance
TJ.
it seemed to me, to have
special facilities for finan¬
something' about It.. BUt; before
cing international; trade ;y which ;
doing so let me say this. There
would act as a 'bridge during the
.has beem considerable discussion
the Bank; I would like to tell you
basic
Byllesby and Company;
Z
4, ILLINOIS
Telephone Randolph 4068
Direct Private Wire to New York
Bell
,
represent
now
developed;: general pol¬
and r procedures bad beep
weighed by the Executive Direct
ST,
to
After World War I
reason' and the
Brochure
SOUTH LA SALLE
undertaken
Neglect of Interhatidnal Trade
icies
208
organize - it - and1 get
Having carried out
that the moment had arrived
Meyer
Eugene
nadian Governor of the Bank.'
son
5^'s of "52
/
opera¬
continuous
-
Executive Directors
CHICAGO SO. SHORE & SO. BEND RR Com.
analyzing these Bond$.
had
>
the Bank should be
the
Bank's organ- ^
ization.
I am
about
CHASE CANDY COMPANY Common
DEEP ROCK OIL CORP. Common
our
I
terms
when the permanent President of
drawal from the Bank.-The
<•
Write for
to
its
on
in
asked to launch the
was
started.
what
ing the foun¬
of
I
—
From then
be viewed
long-time
re-
from
work of build¬
dation
had to
work
.
the Canadian
representa¬
Mohawk Val¬
Memorandum—J. G. White & Co., ley Investing Co., Inc., 238 GeiiTLHno
7SI
>;-V'ju'r
37 Wall Street; NeW~York 5, N, Y, esee Street, iJtica 9. 1L V
Y
Fred. W. Fairman Co.
„
passing
preliminary^ work: oF
preparatibri to the stage of oper¬
—
I SINCE 1908
1
was
the
from.
O'Connor & Co., especially ■
Dresser Industries
Detailed
During or after World War t9
Inc., 135 South La Salle Street, happy to express publicly my
memorandum—Edward A. Purcell
gratitude to Mr. Robert Bryce, the little thought was • given to what
Chicago 3, 111.
& Co., 50 Broadway. New York 4,
Canadian Executive Director, and would
happen, to international
N. Y.
*
'
"
to Mr. Graham Towers^ the Ca¬ trade following the discontinu¬
ocno
Utility
I ho longer
letin—Doyle,
Tol. Franklin 8622
Teletype CG 405
Indianapolis, Ind.
Rockford, 111.
Cleveland, Ohio
^
*r
to
appreciation
of the fine CO-
t
president ■ of "the
wvas
<S>-
sition,
am
Rockwell
be^your ^uest^ t
International Bank for .Reconstruction and Development,
hold that po¬
Street, Chi¬
4, 111.
—Memorandum—Buckley
When T : wa$;Ihvited
Circii-i
Co., Square, Boston 9, Mass;
&
Fairman
LOS ANGELES 14
135 S. La Salle SL ',
Stato6502
CG 99
South
208
>
W.
Steel" Caf Co.
lar —Lerner & Co., 10 Post
analysis in brochure
form—Fred
MARKET
Balstoii
Comprehensive
—
no
U.S.-Canadian economic cooperation as a world-wide model.'-
Electric
Consolidated
Pfd.
Gas
and
UNDERWRITERS
on lending operations of Bank.
Says members
obligations beyond their individual subscriptions
to capital stock, and that bank's obligations will be well secured
because of lending restrictions and a conservative policy. Lauds
of Bank have
Trust
5%s
Utility
Public '
and
'52
Public National Bank &
Chicago 4, 111. Co.—Analysis—C.: E. Unterberg
& Co., 61 Broadway, New York 6
Wholesale Distributors
Middle West
plains limitations
Gas
&
Co.—Circular—Adams & Co., 231
of Securities Dealers
.
which / financed
(Continued
on
American
page
$06)
/
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4560;
Volume 165
275
somewhat
displeased
with
the
ligh scale of salaries set at Savanupcii uie insistence of tho
American
delegation
which
Secretary of the Treasury Vinson
The World Bank's
Presidency
Retrospect
In
NSTA Notes
Mr. Meyer's resignation
land subsequent difficulty in filling post :
speculation regarding numerous phases concerning
Bank's top management.
Present trouble ascribed partly to Bank's
overshadowing by the Monetary Fund during preparatory meetings
SECURITY DEALERS OF TIIE CAROLINAS
Bretton-Woods and SavUnnah;
NEW NSTA AFFILIATE
at
The Executive Council of the National Security Traders Associa¬
remuneration found
tion is pleased to announce that the application of "The Security Deal¬
ers of the Carolinas" has been approved and this organization has
become the 27th affiliate of the NSTA.
Senator
Barkley,
Democratic
majority leader, asked Mr. John S.
Hooker—then just nominated to
keen
rouses
needed
Stimulant in addition
to to airact
to
' ' !
'
'
w
'
,
'
*
'
/
j-
u
V
I4-.'
v
.
*
'
/V1
-
V
'
it'
.
*'
persists that
Stodc Transfers by
Non-Members oi an Exchange
Taxes
on
(Continued from page 268)
Jhimself the
same
formerly and buy gummed stamps for
as
such portion.
TO
THE
STATE TAX
SAID
COMMISSION
are
national delegates,
provided
nate to
themselves
already in the American
Government to get them to go u>
directors ^representing
governments. Out¬
side, if not withih, Bank circles,
"NO".
authority- the Commission cited a regulation of
November 15, 1946; which provides as follows:
"In the event that such dealer
uses a clearing agent
duly appoints such agent to act for him in the
payment of the tax without the use of stamps, then only
said agent shall remit the tax."
and also
Analyzing the above quotation, we ask ourselves, is
there anything in it which supports the position taken by the
"Tax Commission?
Does it warrant
an
interpretation that
once a
clearing
agent is designated* clearances must go through that agency
100%?
;v.
V
Mr.
Hooker
replied:
officers.
fied
...
In order to get
quali¬
people
with experience in
have got to set the
salary rather high."
/ "
securities, you
More Than Renumeration Needed
Recent
.1 do hot wish to
.
.
old
due
experience
indicates
something more than a high
get
that
scale of salaries is needed to
But in our the proper
leadership for the
large a body of persohs
World Bank, The British had no
properly /be temnuerated
objection to [ the manager of the
the
very
view,
from
the
shackles
him at Bretton Woods
so
high
on
posed.
.
level
pro¬
Fund
.
.
The
If the architects of the Bretton
For its
Bank.
"Senator, the primary reason in
my opinion for the high salaries
was
the job of getting for the
Bank a president and other high
cannot
head
on
the
and; proper reward.
thought is being given to the
possibility of freeing the institu¬
and Savannah i
or
deprive any man, especially
and respected
friends, of their
member
placed
should be
shared by the gov¬
appointing or electing
them and not by the institutions
[executive
the
been
ernments
ever-present. group of
an
had
it
men y
desirable top executives.
personalities are boycotting the
post.... because
the. highiy-paid
president of the Bank is subordi¬
tion's
THIS,
prominent financial
Bank—whether
necessary to double the salarv of
high
WASHINGTON,. Jan. 15—(Special~ to "The Chronicle")-—It is
only reporting a fact to state that, despite the" official explanation
»
alternate executive director of
De
the
Keating L. Simons, James
frequently repeated, no one seems^
Conner & Co., Inc. > Charleston, South Carolina, is the President of this
to believe the reasons given
by certainly have proposed that the
organization which covers both North and South Carolina. The Mr.
Eugene Meyer for his abrupt remuneration
of
the
executive
membership of the NSTA, at the lend of 1946, reached an alltime
resignation from the Presidency of directors
and
their
alternates
high of 3,300.
the World Bank. The impression
who, as distinct from the-staff,
*
<
headed.
Woods program did not create the
Salary Question
Keynes
referring
was
arid
the
Bank being
to
the
president
the
of
well paid. Quite the
contrary. Even so, they apparently
[did not forsee the situation which
blueprints of the World Bank as
[salary of $17,000 aftertaxes pro-;
an
afterthought, they certainly 'posed for the? executive directors. developed when last summer the».
did not treat it
The'
on a parity with
Fund. For whatever
its twin, the
reasons
the
Bank's
Articles
managing
director
of' the
Fund and the President of the
Bank under the schedule adopted
at- Savannah get $30,000 a - year
of
American
trouble
had
;Government
finding
to take the
anyone
[tup managerial post in the Bank,
Agreemnt lagged greatly in the
[drafting at "BW," and were final¬ iafter taxes, plus expenses. De¬ pnd which has been repeated on
ly whipped into shape only by fending the American proposals
a more conspicuous scale since the?
dint of very late night work. Dr.
Harry ' White rejected the [announcement
of
Mr.
Eugene
Partly this may have been due to British objections. In his speech
Meyer's resignation.*
the fact that the dominant
he mentioned
the, Bank only once.
His? preoccupation was with the
per¬
sonalities at BW
were
more
in¬
*As further evidence of the
;
pre-[
regards as; Its
high-calibre execu¬ occupation of the British with the
Bank's Agreement a Scissors-andtive directors on duty at all times. Fund, to the. virtual exclusion of
Why is it not proper, for example, in certain over-thePaste Job
Here again, no thought* was given the
Bank, see in the Journal of the;
counter transactions to mark the blotter "we clear" and
Doubtless a good part of the to the position' of the Bank's
then use gummed stamps for tax purposes.
drafting of the Bank's articles of manager vis-a-vis his board of Institute' of Bankers (London),
agreement
was
a • scissors-andOctober, 1946, the -article, "Two
directors. The British found Mr
As we examine the. regulation, we find nothing in it
paste job. Excepting for the sub- White- unpleasantly critical when Conceptions of the International
"Which warrants the Tax Department interpretation.
he said that, once'an issue -has
If the dealer made partial clearances of his own, never¬ for "managing director"#perhaps' beeff" decided ""b^ *variOuS^J con¬ Fund^' by Pauffeareau. Mr% Bar
reau was a member of, the British*
becahse it>■ sounded better for a ferences'^ it should not t"be
again
theless, the clearing agent as to those transactions which it
"bank" that is not a bank—the raised in various directions and
by delegation at Savannah.
fiandled would be the only one remitting the tax.
Bank's articles of agreement on indirection."
The real problem,
By what authority, in over-the-counter transactions, the management phase of the said the future American execu¬
work shows no signs of special tive director
does the State attempt to compel 100% clearances ^through
pf the Fund; was not
Active Trading Markets in
Cogitation.
a "few thousand dollars more or
terested in the Fund.
Fund and What he
need to have
.
.
..
.
•one
agency, where such agent has been designated to make
some
clearances?|||ftl^vlr];3 f;
'
•
'•
Comnfesfo^
unhealthy attitude towards commerce generally because
it interferes with the freedom of action which should be
en¬
every man in his business.
While the announced interpretation may serve
the conyenience of., the Tax Commission, in our opinion it doesn't
justify depriving a dealer of! His right to clear, personally
such transactions
he wishes to handle and still make other
as
through
every
Bank
'March, 1946
there
governors
the
charges in
right to do so.
some
of
a
director's annual salary
whether
you
should have
competent Fund.
in
sidered
Fund,
R. Hoe &
a
the "BW prdgram
_
Class A and Common Stocks
con¬
there
Inquiry into the felationfocussed in the activities of White :
Ship of the Bank's president and
and Keynes, authors of the two its executive
directors; nor. was
was
no
a
■
the salary
question
pacity
the
British
as
to
:
r
' '
Now booked to
than
more
turning out
■
news¬
presses in
;I
•
'
'
••
•.
:•
two
years
ca«»
and
record volume.
■'.-•••
••• •
'
•
•''
.
-
the ;
Circular
had been careful to keep this mat¬
ter
BW program was laid before the
on
Bequest
out of sight of the Congress
by leaving it. to the governors of
during the discussions
governors
for
of agreement in New Hampshire
and
of
magazine printing presses
in the country.
raisCd, since
•
between
manufacturer
paper And
those who had drafted the articles
fundamental difference in view¬
oldest
The
^
[ predecessor monetary plans. There
Co., Inc.
•
When House and Senate
similar pre¬ |
was
with
American governments
A dealer wishing to save clearance
:
and
point
an agency.
fhisf business should have
Fund
occupation
joyed by
^Clearances
but
evinces j... At the Savannah meeting of the
We believeth^ tbe
ail
.
less" in
The Savannah Meeting
v
A dealer
wishing to save the time of his messengers of the functions and remunera¬ the-Fund and Bank to set the pay
are compelled to wait on line at
scale. By the time of the Savannah
clearing tions of the executive directors.
^agencies for an inordinate period of time, should have the
"When the" salary scale proposed meeting which did this, Congress
a-ight to do so.
by the' Americans, Harry White no longer had "anything to Say
who sometimes
■
ADAMS (r CO.
-
This regulatory refinement is an evidence of the ten¬
dency to further hamstring the securities industry by placing
*ipon its transactions Mditional and burdensome regulations.
and
E.
G.
candidates
about it.,
Collado—themselves
for
these
Lord * Keynes,
who
had: hot
Senate
firm
reckoned, with
.
CHICAGO 4, ILLINOIS
after Savannah,
the
con¬
the. American executive di¬
the' inducement of
regulation justifying the interpretation
self-interest," said: "If we had rectors and alternates of Fund and
placed upon it by the Tax Commission we should feel that
foreseen at Bretton Wpods what Hank, and iri an unprinted hear¬
it required immediate withdrawal.
l
If there
were
a
Aeronca Aircraft Corp.
Baltimore Transit Co. Pfd;
,
The existing regulation does not
support the interpre¬
tation announced by the Tax. Commission.
was
going to happen—and it has
turned
put
quite different
expectations r-we
our
ing
on
the two American
nate executive
from
should
directors,
alter¬
Burgess Battery Co. Com.
finds
Chgo. Auro. & Elgin Ry. Units
one
Decker
Senator Robert A. Taft and others
Howard
*
*
CENTRAL ELECTRIC & GAS COMMON
Bought
Sold
Quoted
INDIANA
MUNISlNG
PUBLIC
SERVICE
COMMON
,
i
a
;
'
PHONES-—Daly 5392 .J.Chicago t. State 0933
Manufacturing Co.
Trailmobile
Company
"Detailed analysis available on request
DOYLE, O'CONNOR & CO.
INCORPORATED
.j-
Members Chicago Stock Exchange
225 EAST MASON ST.
.t
Miller
Oil Exploration Co. Com.
PAPER COMMON
★
|
Hydraulic Press Mfg. Co.
Long-Bell Lumber Company
*
COMMON STOCK
NORTHERN
Mfg. Co. Com.
Industries, Inc.
Old Ben Coal Corporation
CHICAGO TRACTION ISSUES
Ray-O-Vac Company
PHONE STATE 0101
-
called upon to
was
SOUTH LA SALL& STREET
TELETYPE CG 361
I
However,
salaries-
231
MILWAUKEE (2)
..
*
.
.
-
CosvasTook & Co.
■
.
.
Teletype Ml 488
i
-
,
I
135 SOUTH LA SALLE STREET
CHICAGO
Telephonej Dearborn 6161
:
!» i
?
••
f
'
p
CHICAGO 4
231 So. La Salle St.
3, ILLINOIS
Dearborn 1501
.
-'
Teletypes CG 1200
,
Teletype CG 955
'
276.
Michigan Brevities 11|
"
Corporation was the successful bidder for an
issue of $57,500 city of Ecorse paving bonds sold by the city.1 The
bonds, being a general obligation of the city and maturing 1948-52,
were reoffered at prices ranging from 1% to a 1.35% basis.
•*' ,*'*
of Michigan
First
yv
Dollar volume of trading in
Rep. Knutson Urges
Reprisals Against
Treaty Violators
!
reported viola¬
tion of'British Loan Agreement
1946 on the Detroit Stock Exchange
lation of Brit-
the peak
i
*
*
,
,
Precision Parts Co., of Ann Ar¬
asked SEC permission to
y
'
bor has
;
1945.
h
s
.
Loan
A gr e
ement,
in
discussed
withdraw 75,000 shares
of $10 par Secretary
preferred due to Snyder's press
cumulative
5%
unsettled
conditions,
market
f
-Formation of the
Royal Crown
a
y
Baker, Weeks & Harden, 1556
Bldg. have announced
i
The firm will operate as a
Goebel
:lJ
.
M.
*
*
*
"
r
telephones installed. The company also completed a $39,000,-
now
Stock Exchange
Bossert
of
ness
Co.
&
Co.,
of
Inc.,
Utica, N. Y. in exchange for shares
of Timken
DETROIT 26, MICH.
W.
Phone
Cherry. 6700
F.
according to
Timken Presi¬
common,
Rockwell,
dent.
+
*
#
McDonald-Moore and H, V. Sat¬
iny & Con ine,, have purchased
new
a
Charles A. Parcells & Co.
issue of $130,000
Vermont-
water revenue 3%
They were offered to yield
2.00 to 3.05%, and are due Jan. 1,
Mich.,
ville,
bonds.
Established 1919
"
,
Members Detroit Stock Exchange
1950-76, inclusive.
»"
'
-
*
*
*
i
'
>
-
'h'*
*
Syndicate; Minneap¬
olis, has opened a regional office
in the Industrial National Bank
Bldg with A-. C. Munderloh as
Investors
Michigan Markets
Building
639 Penobscot
DETROIT 26,
manager; yr- * ;r>
Randolph 5625
DE 206
signed.' F. R. Robinson will take
Fred B. Prophet
over
Mr. Smith's
position in Fern-
Company
•
Kennedy Joins Cruttenden
(Special to Thb FmANCiAt CHRomctx)
Circular ori Request,
CHICAGO,
Kennedy
ILL. — Joseph
has
DeYoung, Larson & Tornga
V
Salle Street,
La
Co., 209 South
members of the
New York and Chicago
MICH.
Stock Ex¬
Mr. Kennedy was pre¬
changes.
Phone 98261
A.
affiliated
become
with Cruttenden &
GRAND RAPIDS,
plans
tion
Com¬
of
plant
1946 showed
viously with Mason, Moran & Co.
mortgage
are
a
Pres¬
for the construc¬
new
production
gas
the Front Street prop-
on
plant
been paid for
out of current resources.
$2,500,000
at
Travelers
were
reported
$2,700,000 at
for
971
$153,151,representing a
18.5%.
Undivided
against
year
a
ago,
decline of
profits of $2,037,793
were
from $24.26 to $25.09 per share.
The income account for the
or
a
and
ity
a
excess
Machinery, $1,908,000; Fidel¬
and Surety, $1,825,000; and
*
share in 1945.
Y:Y
in
Fire, $24,183,000.
share against $984,-
$2.46
total
$34,049,000; Bur¬
glary and Glass, $5,467,000; Boiler
Net income was $977,672
$2.44
a
Compensation,
ended Dec. 31,1946 showed
gross
earnings
of
$2,638,691
against $2,686,317 the preceding
year
year.
Company
high in premiums
ums were as follows:
Life, $130,440,000; Accident and Health, $41,541,000;
Liability,
$11,074,000;
Automobile Casualty, $44,422,000;
up
Book value increased
$335,256.
with
of $294,911,000.
This showed an
increase of $18,868,000 or 6.8%
over the 1945 total.
Paid premi¬
Deposits at the year-end were
$124,780,765
Insurance
a new
1946
5-Y;.;VY-:
:
year-end statement of the
Phoenix State Bank & Trust Com¬
♦
*
•
The Town of Stratford, Con¬
necticut will receive bids oir
Jan: 20, 1947 for $495,000 Sewer
Bonds,
to
mature
$33,000
an¬
pany
.
*
A
semi-annual
dividend
was
Jan. 10, at ah annual rate of
iy2%, which rate has been main¬
on
in
out
seven
amount to
of the past
$174,393.93 for 343 sav¬
and loan associa¬
tions in Illinois and; 115 associa¬
building
ings,
tions in
Wisconsin, in addition to
struction
to the Recon¬
Finance' Corp: which
holds the
part of the original stock
the portion paid
of
the
bank
subscribed
Treasury in 1932.
will bring up to
new
of
hours,
$2.50 and 7% cu¬
preferred stocks on
March 15, 1947. The $2.50 pre¬
ferred will be redeemed at $55
paid to stockholders of the Fed¬
eral Home Loan Bank of Chicago
tained
1946
mulative
Chicago Home Loan
Bank Pays Dividend
dends for
by .the
This payment
$342,093 the total
the bank's divi¬
1946 arid will mark a
high since 1938.
dividends
of 41%c, or a total of $55.41%
per share.
The 7% preferred is
called at $55 a share plus ac¬
crued dividends of $52.35, bring¬
ing the total redemption value
to $107.35.
a
share plus accrued
*
'
*
*
over
91,715,000 kilowatt*
Increase of 19.5% ;
were
or an
December 1945.
*
♦
*
The Plastic Wire & Cable Corp.,
of Jewett City for the fiscal year
ended Sept. 30, 1946 showed net
sales of $2,205,248 compared with
$2,727,812 for the preceding fiscal
year. This latter figure was after
$232,429 renegotiation fund. Net
income was $85,254 against $68,-
707, or earnings per common share
of 86c
against 69c respectively.
plication with the Interstate Com¬ Earned surplus at the end of the
merce Commission for permission fiscal year 1946 was $165,447 com¬
to increase its passenger coach pared with $90,623 at the end of
The New York, New Haven &
Hartford Railroad has filed an ap*
fares
from
2.2c
to
2.5c
per
mile;
parlor and sleeping car fares, from
3.3c to 3.5c; and to increase inter¬
state commutation fares 20%. The
September, 1945.
Collins
The
clared
a
<
Company
dividend
of
$5
de¬
per
payable Jan. 15 to stock¬
holders of record Jan. 7. Pay¬
stated in its petition that
despite the freight rate increase
which became effective Jan. 1,
share
1947r the road would be faced with
of $2.50 per
company
approximately
000 for the year 1947,
a
deficit
$7,000,-
ments
in 1946 were at the rate
making
a
share each quarter,
total of $10 for; the
year.
INDUSTRIAL BROWNHOIST
Y
i
Tifft Brothers
L. A. DARLING CO.
Members New York and Boston
RESISTANCE WELDER
YYY>Y
Fifty-sixth Year of Dealing in
Stock
Exchanges
•
Associate Members New York Curb
THE C. H. DUTTON CO.
"*<•"*** -rvt'•**
:vr.'.v?:/
•
r
•-
'
V-
'
•
y
-
'•
Y-'
.
t'..'
:
.
•'
Markets
—
Y„;YY::YY&.fYY
>•.•.-Yv'-Y.Y"*Yr.YYY"'.".vit^'Y5-'-
Information
•;
urities
ut
Connec tic
Exchange
Primary Markets in
Primary
Markets—Statistical Information
Hartford and
Connecticut Securities
Moreland & Co.
;Y
Hartford
7-3191
MEMBER DETROIT STOCK EXCHANGE
1051 PENOBSCOT BUILDING
Yv
j
,,
/
City
—
.
.
.Lansing
'
•;^
—
»
'
r
•
Members New
New York:
•
York Stock Exchange
New Haven
6-0171
BOwling Green 9-2211
S; Yi. DETROIT 26
Bay
New
Muskegoa
;
■
improvements
have
<
nually commencing Feb. 1, 1948
showed total assets of $79,to 1962 inclusive,
445,324 against $87,228,196 a year fe'YY;;.YY;Y;
*Yy' #
Y"v
Loans and discounts in¬
Snyder today announced the ap¬ ago.
On Jan. 23, 1947, the State of
pointment of Eugene Swigart of creased $2,386,468 and cash and
Connecticut will receive bids for
Chicago, 111., as a member of the due from banks increased $2,970,an
issue of $6,000,000 Say brook
Appeal Board, Office of Contract 291, while holdings of U. S. Gov¬
Bridge bonds.
^ f
.\t,
. ,,,
Settlement, the functions of which ernment securities were reduced
were
recently transferred to the from $56,780,006 to $42,759,996.
The Town of Darlen recently
Treasury Department.
Surplus was increased by $800,•;
Mr. Swigart, a Dative Of Cin* 000 to $2,400,000, while undivided awarded the Home Bank & Trust
cinnati,
Ohio, graduated from profits of $1,224,359 compared Company of that town, $200,000
Tax Anticipation Notes dated Jan.
Princeton University in 1926, and
with $1,553,978 at the end of 1945.
from the Harvard Law School in
10, 1947 and maturing May 15,
Deposits of $73,757,703 declined
1947 at a 0.50% basis.
1929.
He passed the Illinois Bar
from
$81,467,587—a decrease of
*
*
♦
in 1930, and for a number of years
9.4%. Book value per share at
was associated with the law firm
The
Connecticut
Light
&
the end of 1946 was $326.52 com¬
of Montgomery, Hart, Pritchard
Power Company reported total
pared with $297d2 at th^ end of
and Herriot, in Chicago. He comes
power sales for the year ended
1945.
♦
#
*
to the Treasury from the OPA,
Dec. 31, 1946 of 974,971,000 kilowhere he served as Associate Gen¬
The Segal Leek and Hardware ■ j .watt hours, which Is an increase
eral
Counsel and
chief of the
Company
annodrtced that Yi .^of approximately 1.8% oveW the
1945 total.« Sales for December,
legal section of the Rent Division.
the company will retire all of its
distribution
ALLIED PAPER MILLS
first
Proceeds will be used to
finance plant expansion.
ent
Trust
&
31,
$2,000,000
bonds.
All
The
eight years. Total distribution for
the last half of' the year will
Common Stock
issue
outstanding
Wesley E. Smith, former assist¬
ant
manager
of the Ferndale
branch of the Wabeek State Bank,
has been named manager of the
Birmingham, Mich., branch, re¬
placing Frank Quisenberry, re¬
Teletype
GR 84
Contraot
MICH.
Telephone
^
on
WASHINGTON, Jan. 15 (Special
has
to the "Chronicle"), r— Secretary
purchased all the assets and busi¬
BUILDING
DE 167
■
Axle
Timken-Detroit
Wm.C.Roney&Co.
~
e
*
Dec.
Company have given
plan Y to create
an
open-end
mortgage deed of trust and to
.
1930
048
Settlement Board
held.
♦
Teletype v-
Swigart
will be given for each
of $1 par
share
812 BUHL
If
stock to 800,000 shares.
Bank
for
Gas
their approval to the company's
erty.
or
plan is approved, one new share
UNLISTEDS
Members New York
which
to increase the authorized com¬
mon
ford
*
.
the end of 1945.
according to a company spokes¬ with us, this government should
proceed vigorously to defend our
*
*
*
rights, and if necessary take steps
to abrogate any trade advantages
Mueller Brass Co., has called
which said country enjoys in its
a special
stockholders' meeting
commerce with the United States."
for Jan. 28 to vote on a proposal
MICHIGAN
*
♦
The stockholders of the Hart¬
since
Hon. Harold Knutson
man.
Call Us On Any
"
and
employes
(125), both handles trade
AFL and CIO members, received agreement matters, for comment.
Mr. Knutson said: fTf a country
a bonus of 25 shares each in the
Koppitz-Melchers, Inc., brewery, violates an economic agreement
ported 1946 was the busiest year
in its history with 400,000 new
*
written down from
Com¬
mittee
Y'
•
premises
Union
Michigan Bell Telephone re¬
YY
[ banks 33.1% of the total. Bank
of
the Ways
Means
$400,000 to capital stock and anY
equal amount to surplus,;; bring¬
ing each of these items to $4,400,000. Undivided profits of $1,023,541 compared with $852,440 a year
ago while reserves of $1,286,364
compared with $1,060,947 a year
ago.
Deposits
of
$116,511,059
showed an increase of $1,093,504.
proximately 43.9% of total as¬
sets, and Y cash and due from
Minnesota,
Chairman
£,nrtThe u<cqulsition of the West Hartford Trust Company added
U. S. Government securities ap¬
"C h ronicle"
of
a year ago and U. S. bonds
$37,404,979 against $47,641,403 at the end of 1945
National
Bottling Co.', of Detroit was an¬ asked Con¬
by
E.
J.
Anderson, gressman Har¬
Knutson
President of Goebel Brewing Co, old
McConnell and subsidiary and will produce car¬
bonated beverages sometime late
William R. Kaelin haVe been made
in; 1947.
members of the firm.
Rollin
that
ote foHnf'n™ con?pared with $29,062,224
of
pany
nounced
Penobscot
,
The statement of the Hartford
the
,
'
-
conference to¬
ri
$3.53 a share on 1,250,000 shares of
capital stock. This compares with
$4,376,712 or $3.50 a share in
the
"Chronicle").—Relative to
reported vio-
for the year.
National Bank of- Detroit re¬
ported a net profit for the year
ended Dec.: 31 of $4,408,832 after
all charges and reserves, equal to
■
WASHINGTON, Jan. 15 (Special
to
The
year-end.; Statement of the Hartford-Connecticut Trust
Company showed a gain of $2,302,022 in total assets over the precedPrincipal changes in assets showed loans and discounts
Makes statement to "Chronicle"
$62,155,624, as against $57,-*
000 construction program. An all
This
686,084 in the year before.
time
high of nearly 1,380,000
represents a 10-year high and was
phones were in use in the coml&rgely due to a record breaking
.pahy's territory at the year-end.
first quarter when sales were at
Thursday, January 16,.1947
..
Connecticut ^Br€^vitiesis;YYYY||
y;
in connection with
totaled
*
Y
THE COMMERCIAL & .FINANCIAL CHRONICLE
,
Bell
System Teletype: HP 365
London
Hartford
2-4301
7-2669
Canal 6-3662
Teletype NH 194
New' York
Waterbury 3-3160
Danbury 5600
.
of Crisis
By
PHILIP MURRAY*
.
"f.y. President, Congress of Industrial Organizations
by labor and public
Can stay
This Nation faces
During the
a
of
can
mendous pres¬
sures
on
the £
to divert attention from their
Philip Murray
the
national
pro-,
gram of control of
prices and liv¬
ing costs. Now they seek to arro¬
themselves
even
more
complete power over the living
'standards of the American people.
Only
acted
propaganda of wilful distortion,
of
oft-repeated calumnies and
falsehoods, in turning, the public
against .the verjr
organizations:
the labor movement has
effectively
right
of
to assert the
people to a decent
the
To
having capitulated on
prices and profit-iregulation, only
labor—with its demands for wage
Labor's
success
in
avoid
the
debacle
pression and chaos.
Powerful
monopoly
hope to restrict the
of
labor
♦Abstracted
-
the
distortions
tissue
and de¬
of
labor's
reading, both
by the general public, by- mem-;
bers of our
organizations, by the
*
elected
to
from" "The
curb,
Drive
dollars.
a
;
result
4
*
Emil; Schram, NYSE presi¬
Labor's Attitude and
was
been
Doubts voluntary price
decreases by corporations "which
brought about the dangerous
inflation." States unions are suable in
every state in Union.f
*
If Schram
sacrifices
misfortunes
attention.,
4
and
warfare
:
not
very
similar
the
in
horrible
large
-
tend
a
Lee Pressman
dramatizing the
received
personalitiess and
few leaders. What
happening in the
*An
occur
serious
sufficient
school.
homes and to
to
25,000,000
more
#700,000,000
by
before Economic
Mr.
Club,
City, Jan. 9, T&47.
160,000
net
or
furnished
or other sympathetic
Medical care, even though
essential, may be unobtainable.
groups.
Strikes
necessarily
result
in
brutal injury to the human
beings
■
a
120,000
page
'314)
.
44,.
war
veterans
V,,
reinstated
*
.
For 1947, the Bell
System
aims
to
still
more
and
to
go
forward
in
more
people.
members oh the other hand
live by
commissions.
The
heavier the; trading (or what¬
you care to give it)
bigger the commissions.
It might be!
Interesting to ob¬
serve that there is a lot of talk
about the possible reduction
margins.
For what puron
314)
page
Securities
-
rv\
-
'
mv'-4
'i
2' •v-1
v
'''•
•'
-4
/'
'
-'
4
vV
Orders Executed on;"
Pacific
Coast Exchanges
BELL
Schwabacher & Co.
V
.•'1
.-i
Members
New
44
New
York
York Stock Exchange
Curb Exchange (Associate)
44$ Chicago
14 Wall Street
Board
of
Trade 4'-
New York 5, N. Y.
4
COrtlandt 7-4150
San
Wires
Teletype NY 1-928
to
Francisco
Monterey
—
Principal Offices
—
Santa
Oakland
V :
—
Barbara
Sacramento.
4
.
•
.
'•
installed
now
to
640,000
and
4..-:-,44 y.-,;.-
employed since
4444:.,
■
,
■./
of the year was one of determined prdgresSj;
despite shortages and many post-war problems." And
most calls went
through fast.
better service for
(Continued
and
increase in employees—total
...u
.
TELEPHONE
var^
anil President
WSmi
day handled
•
The story
others, I'm interested
profits. Stock Exchange
Fresno
on
filled
V-J Day
.
as
result of suc¬
a
£400,000,000 increase, in payroll
thou¬
•
(Continued
new
at¬
Pressman >'■-& This is the known penalty which
New York confronts each and every worker
™
tike
calls
equipment made
expand- and improve your service
-
participants
The
from relief
years
fingers (and toes) to count up
System accomplished in 1946 —
in our whole history*
Pacific Coast
resulting
injuries
clothes
as
3,300,00(£ telephones added1
-
sands of
Private
address
d
name,
by the union
involved.
*.•
and
positions
lot of
the busiest year
to
bookkeeper, and dur¬
Comptroller in i.902
may
only available
food for the
family may be that
strike occurs, our
newspapers and
radio commentators are
given to
is
deaths
without
a
a
strike
assistant
in 1912.
It would take
Chair¬
1927
cessive promotions,, becom ing
Gen
Evictions
savings depleted and no pay,
the children
may find themselves
scale
statements of
the
With
con¬
When
fought
months.
as
from
ings Bank in September, 1882,
■,»
has been known to
consequences
■of interna
;
fiercely
for
1927, and
Board
how much the Bell
I'm not concerned
from
homes may easily result. Violence
are
dis¬
from
tional
flict.
A
last
to
the
^4-4
:
a n
Personal Effects of Strikes
on Workers
ing
1913
of
time. Born in Brook¬
lyn on July 12, 1864, he entered
the employ of the Brooklyn Sav¬
eral License No. 87.
governments. We call it specr
and the speculator is
called 3 trader. Others call it
of
scant
from
visions have all been incorporated
ulation,
the personal lives of the strikers
and: their families receives but
and
;
Mr.
the present,
ous
was
often
Maynard's
64
years
in Brooklyn
banking
were spent with. Brooklyn Trust
Co.,: which he served as President
man
the
<s>-
The
half
ing the next 20
quoted cor¬
rectly then Schram also has a
"misconception", of the busi¬
ever name
outset, let me emphasize that industrial peace is desired
as fervently as common
people everywhere yearn for
hardships,
Brooklyn."
engaged."
with
v
and one-and-one-half times wartime
high.
nations.
of
than
istration because he
(Has¬
kell) "had a misconception of
the [business-• in which he has
gamblers.
warns
peace between
:,More
saying that he
suspending Haskell's reg¬
gambling
.
labor will fight to prevent proposed
legislation,
as
curtailing its basic rights. Cites dwindling income and rising
living cost of Workers—stating latter was not caused by wage in¬
creases—as justifying strikes.
Alleges corporate profits are iraeand-three-quarter times 1929, three-and-three-quarters 1936-'39,
At the
Citizens
cur¬
l^pwir^ firms and established
Industrial Peace
by workers
Charity,"
pro¬
of
has
and
"Brooklyn's Man of
and "one of the First
revoked, since its
amendment
en¬
called
an
deals in the securities of well
1'CIO official
organizations
ous
been
cer¬
new
in
which
years
during
much effort to
so
received many honors from vari¬
These changes were in the form
of an amendment to General Li¬
cense No. 87. ,At the same time
General License No. 64, which
speculation
By LEE PRESSMAN*
banking,
com¬
active
an
64
terprises of public benefit that he
issued prior to Dec.
7, 1941 (1) by
persons in the United States and
in the
out
than
philanthropic, civic and other
henceforth will apply, in general
only to the acquisition and impor¬
tation of transferable securities:
,
:
Brooklyn
Trustee of the
more
he also devoted
tion of securities not within the
United States and with regard to
the
importation
of
securities
rency, was
.
^ General Counsel, CIO V
a
rounds
tain types of securities and
sist.
-
.
of
career
of
authorized the importation of
meeting of the Board
Maynard, who will
as
thus
pany,
(2) by any person if payable in
United States dollars.
active
Jan. 16. Mr.
continue
today's action,
the Treasury Department regula¬
tions with respect to the acquisi¬
Against Labor," published by the telligent
understanding by labor were stopped. The word
spec¬
Congress of Industrial Organiza¬ and the
public as a whole- can ulation
has achieved an aura
tions, Washington,. D. C.
I
stay this vicious campaign.
of
respectability because it
vl
ganization
on
4; 4 4-4 4 4
4 4
from
duties with the company for reas¬
ons of health, after the annual or¬
States which are issued
by foreign
governments or foreign corpora¬
tions and not payable in United
As
Edwin P. Maynard, Chairman of
that he would retire
Snyder announced today the re¬
moval of
Treasury Department
restrictions on the acquisition and
importation of securities physi¬
cally located outside the United
representatives" of
the
people. It will help them better ness of the NYSE and'that of
to
understand * the
campaign its members.
The majority of
against unionism, and to turn
the NYSE members would go
aside this attack-of reaction.
^
For only forceful action and in¬ out of business if
interests
effectiveness
legislation
by
„
in'an effort to
mend it for careful
de¬
of
the
r
the Board of Trustees of Brooklyn
Trust Co., announced on Jan. 14
of in the press as
of the slogans of the current antilabor campaign, and to set forth
the facts and the truth. I com-
this
struggle will determine whether
our people can
live in decency,
our
economy function freely, our
nation
through
fabrications, false issues,
liberate
power.)
failure
or
cut
thoughts and action, I have di¬
major force, rected the Legal Department of
proper dis¬
the CIO to prepare this analysis
actively striving for a
tribution^ of purchasing
"in
was
truly act in the people's dent, taking unbrage at Has¬
kell's observation, was quoted
interest.
ernment
as a
he
which
.share of the product of our na^
tional economy.
(With the Gov¬
increases—stands
that
court
Maynard Retires as
Chairman of Bklyn. Tr.
WASHINGTON, Jan. 15 (special
the "Chronicle")—Secretary
States
action
recent
gambling business" himself,
get out of jury
duty, has actually nothing to
American workers.
do with the stock market, a
It is understandable that pow¬
erful corporations and their or-; subject the column is theo¬
ganizations hate and resist the
retically concerned with.
challenge of the workers' union;
Still, to pass it ;by, is an op¬
but it would be tragic for our
country if they succeed, with their portunity too tempting to re¬
~
spear-
gate unto
own
unconscionable position by seek¬
ing to divert popular anger to¬
ward the organizations of the
of §
all the people, a
This * small a;
headed
the
destruction of
The
by the
New York Stock
Exchange
reactionary radio commentators, Against r William Haskell, a
through every means of commu¬ customer's man,
working for
nication available to them, indus¬
E. F. button, for saying, in
try and its spokesmen have sought
exert tre¬
group
visible under 170.
adopted the tactics of tyr¬
anny
everywhere
and
at
all
times. Through their press, their
«
well-being
through Deci 28 lows
puts market back into nega¬
tive position,
Some support
have
their power
now
even
gathering crisis for our Na¬
tion,
these
monopoly
interests
ly
bankers
every
this
mittee recent-
handful
=By WALTER WHYTE=
on
destroy—Amer¬
unionism, -In. the midst of
ican
Com¬
that
Says—
Break
harass—yes,
economy. As
such
I
o
"this vicious campaign."
entire
Senate
Walter
real crisis
today.
monopoly groups tightened their hold
war
major indus¬
try and on our
.
Markets
J, \;
blamer powerful monopoly interests for
present agitation
restrictive labor legislation.
Says aim is to destroy unionism
and concludes only forceful action and
intelligent understanding
~
Treasury Removes
Curbs on Imports of
Foreign Issues
Tomorrow's..
SYSTEM
more's
has
1
Provident
announced
Savings
that
the
Bank
By
Bank,
i
opening of still another office
(bringing the number of Provident
-
serving 160,000 depositors
.the
December
of
the
operation of
-this 60
year
old savingsbank
t whose
deposits have been more
than tripled in the last 10 years
Fire Stocks
•
31, 1946-^:i-.r-—3
3-—--^^—3
33 Change
Office further demonstrates
success
These compare
with
average.
varied
however,
stocks,
$50,000,000 increase.
> J
from the indices.
bringing the total to over $76,The
accompanying
000,000.
a
'■
■
>
.
ADVERTISEMENT
;
REPORT OP CONDITION OP
S
: i
:S-/■
Company
by
the
Banks
of
provisions of the Baniung
.lAW of the State of New York,
ASSETS
"Loans
/United
States
obligations,
$14,023,503.54
!
Government
direct
,
10,552,265.77
•«
4,701,639.93
subdivisions
Other
bonds,
debentures-
,
Cash,
banking
i;
eluding
and
and
with
other
cash items
of collection
in
<
Other assets
-
fix-:
TOTAL.ASSETS
,
•
r
-
1.00
;i
,
—21.4
—20.4I
—20.3 ° /
55
37
•
65;
-
'
*128
-
-
New Brunswick
St, Paul F. &
79
M.-r—33—;
Hartford Fire
North
Insurance
54V2
I
58%
!
52 y2
96V4
i'
Ins. of North America 3
—
$36",624,437.82
|"Average of 25 >3——
Casualty Stocks—
-—
,
—
Demand
t
and"
partnerships,
:
^
;
-
:
51 Vz
100
-
partnerships, and corpora- •tions
—5,491,412.16
Deposits of -United "States
/V:.
Government ——L„;
490,373.02
.
——
Deposits
'/
of
States
subdivisions
and
.
political
"
5,309,482.94
*"
%
392,365.66
Deposits of banklng institu-
tions
i
—;
Other deposits (certified and
?
officers'
•
DEPOSITS
.
1
-
*■
.
"
■
-
212,496.57
•*;
'
TOTAL LIABILITIES—— $34,040,895.29
,
$1,000,000.00
750,000.00
—
(Surplus fund
"Undivided profits
TOTAL
/
CAPITAL
COUNTS
833,542.53
;
———
AC¬
———
$2,583,542.53
-
TOTAL LIABILITIES AND
:
.CAPITAL
.
y
-
v
1
ACCOUNTS—
institution's
stock
common
$36,624,437.82
I.:^-
•;
-/ <r
tThis
with
$1,000,006.00,
capital
total
MEMORANDA
value
of
/
S.
direct
and
'i
obliga-
>
ties
|
rediscounted
and
under
sold
Assets pledged
exercise
\
TOTAL
I57.30i0.00
■ ■■■
provisions of law but not
by pledge of assets
I
TOTAL
I,
WILLIAM
above-named
that
the
is
■*
120
.
.
New
—
?
-119.5
Change
This
31, 1946--
i
161.0
—
•:
:
il—i—r
•
; -+'359.6%
ANAYtZED
r
Sold
—•
Jpnes: Industrial Aver-j
age,
This exhibit appears
ket.
& Shippers in
to bear
the/eonterition^^ of:^^ this: writer/
out
that
^
*
3,136,108.51
Trading daily 7
true
of
the
certify
to
KORELL
selected
well
fire
and
cas¬
and
eral
York
Stock
to 5
p. m.
Manager Trading
v.::
Department)
COMPARED y
"7
issue
said
PRIVATE WIRES
TELETYPE
—;
L. A 279
San
—
Francisco
L. A. 280
—
/
Seattle
of
under
and
in
and
Resolution of the. Board
a
bonds,
district
school
said
which
Resolution
to
was
duly passed by the Board on the 10th day
of
December,
194C,
particulars
certain
and
was
the
on
amended
14th day
in
of
V?
1947.-+-,
January,
,,
Said bondb are of the denominations and
shall mature
Said
follows:
as
bonds
serial
be
to
from
numbered
hundred and fifty
three
bonds
shall
one
(1)
inclusive.
(350)
They shall be dated approximately Febru¬
ary
1,
1947.
All bonds shall be in the
denominations of One Thousand ($1,000.00)
Dollars
each.
Said bonds shall
mature
according to the following schedule: Nine
(9)
bonds
of One Thousand
($1,000.00)
shall
each
1948.
shall
be
June
of
One
of
l,
1948.
Thousand
each shall mature De¬
The same schedule of
Dollars
1,
June
mature
bonds
(9)
nine
observed
anni¬
the
on
December
and
1
from
1
year
.
,
:
Ingersoll Harold Scattergood
•
•
.
-
the annual ,diriner meeting of the;
Association
at
the
University
Club. He succeeds H. Clifton Neff,;
1946
Schmidt, Poole & Co., the
President.
Other
elected
officers
membership
For
Governors
years
or
bids
were:
to
on
serve
the Board
for. three,
the following,were
Scattergood;
elected:
Newlin Da¬
.
;
.
.
do
.
so may present 'a
bearing a rate
bonds
than
specified in the
advertisement,
providing,; however, Xthat
where
a
fractional interest rate
is bid,
fractions shall
such
be one-fourth
(«/4)
of
or, multiples
thereof.
be ;sold to the highest
time and place above men¬
(V/r),
percent
one
will
bonds
Said
the
bidder
at
tioned
at- not
than
less
Bids
may
par
and
accrued
be made upon
,
all
or
number of bonds in this issue.
All
bids must state the number of bonds bid
any
and
for
the
must
check
gross
interest
accrued
bids
by
the
favor
in
Boardof
the
a
sum
of
of
Board
-
*•,,
of
Local
$3,500.00.
said
privilege
and
AJI
certified
Township
the
Education
reserves
and all bids
any
of
Jackson
of
District
District
amount -of • bid
date of delivery.
in
drawn
School
The
to
accompanied
be.
Education
to
School
reject
«■*
•
j
Bids should be sealed and endorsed "Bids
fpr Jackson
Township School Bonds".
By order of the Board of Education
of
vis; Kidder, Peabody & Co.; Harry
B.
Snyder, / Yarnall & / Co.; and
William B. Ingersoll,
said
for
different
interest
of
interest.
Vice-President; Harr^: Ci/RiOpard,
Buckley Brothers; Treasurer, G.
Ellwood
Williams,
Perinsyyania;
of
(20) years./
Anyone desiring to
bid
William B.
Harold
210 West 7th St., Los Angeles
Ohio,
Education
of the Gen¬
2293-1 et seq.
of
of twenty
Co.; and Secretary, Harold Scattergood, Boenning '& Co. " :
(P. C. T.)
OF CALIFORNIA
Chicago
.
1948 / to/and including the Year
1966, or for a period of nineteen
(19)
years.
During this period of time a total
of Eighteen Thousand ($18,000.00) Dollars
of bonds shall be retired in each year.' Oh
June
1,
1967
four
(41
bonds' of One
Thousand($1,000.00)
Dollars each shall
become due, and on December 1, 1967 four
(4r bonds
of One Thqusand
($1,000.00)
Dollars each
shall become due; so that
the total Issue shall not exceed maturities
Exchange
BUTLER-HUFF & CO.
—
of
the
~
New York
Code
retirement
Inquiries invited. Orders solicited.
the
Sections
of
accordance with
cember
PIKE
1
SUMNER FORD
^Directors
JOSEPH B. V. TAMNEYJ
a. m.
•
Dollars,-dated approximately February I,
1947, and bearing interest at not to ex¬
ceed 4% per annum, payable semi-annually
and issued for-the purpose of constructing:
and equipping a new fireproof high school
building and for the purpose of improving
the present fireproof high school building,
and under authority of the Laws of Ohio
ualty insurance stocks are excel¬
[ngersollHeads Phila,
Quoted
REVIEWED
'
+329.9%
+269.4%
| +437.6%
have done better over thq
4:577
long tettri/thaiTi^^ the:^^gerieral imai^
2.3
;
Insurance & Bank Stocks
—
;
second
the; Dow
of
Bought
41.22
177.20
126.7
"quality"; stocks, which comprise
6.6
6.5
Telephone: BArclay 7-3500
Bell Teletype—NY 1-124S-49
(L. A. Gibbs.
Indus. Av.
34.3
BROADWAY, NEW YORK 5, N. Y.
;fi
throughout the U. S. A*
Correct—Attest:
W.
—
Special Bulletin and Booklet Service to Dealers & Brokers
best of my knowledge and belief.WILLIAM D.
C.
Members
Berkeley Square, W» 1
$7,268,541.53
statement
27.4
Laird, Bissell & Meeds
OFFICES:
is
Dow Jones
-
5.5 3U
>
D. PIKE, Secretary
institution,
hereby
above
3: i
I.■■
unaer
secured
3
8.2
$4,333,677.87
'V'O+m, S'tfrC.. '
preferred
December
9.1
STOCKS:
121,968.65
Deposits secured by pledged
v
assets pursuant to require¬
ments of law_—$4,004,183.02
Other liabilities secured by
pledged assets—
128,250.00
:
LONDON
47
Secured and preferred lia-bilities: .'• * 1
Deposits
:;
!
INSURANCE
Threadneedle Street, E. C« 2
the comparison
26.0
1932 Lows
>
£23,710,000
back still further to
go
Fire Stocks Cas. Stocks
versaries
30th
.—£223,163,622
Aggregate Assets
Sept., 1945 —
we
Standard & Poor's Weekly Index •;*.
402 Stocks
)
and
Prop.- 8,780,000
Casualty stocks,
!
BANK
\
6,150,000
Fund
If
($1,000.00)
£8,780,000
+90.7%
+108.4% v
.
the 1932 lows,
as follows:
and
(ESTABLISHED 1817)
•
•
stocks.
Dollars
Agency arrangements wltb Bank!
to
——————
In¬
new south wales
29
fiduciary or
and for
/•■;•
Jones
Head Office: George Street, SYDNEY.
Becurities loaned-
•;'
Dow
banTof
1,548,507.08
corporate powers,
.
the
THOMAS BAKER HEFFER,
General Manager
-
to qualify for
of
behind
are
Securities Association
J
se¬
purposes
other
than
secure^ liabilities
as measured by
Poor's composite in¬
402;:stocks, and they
3 !
,
^
$2,505,902.14
repur-.
agreement)——
of
1942,
&
average,
Reserve Liability of
•
(including notes and
bills
—
12%
86V2
.747%
168
and Bankers
1940
down
stocks were
+58.8%
dustrial average.
lent long-term investments.
and the 8 cas¬ three years out of the five subset
quent to 1940; presumably each
ualty stocks were down 12,4%.
Bankers & Shippers and Amer¬ will plso report ript underwriting
.
;
ican Equitable showed maximum losses for the year 1946.
declines in the fire group, and this
It will be observed- that thir-:
is
not
surprising;
American teen stocks out of the 25 de-;
Equitable has reported net under¬ clined more than the average of
PHILADELPHIA, PA.—William
writing losses in each year since 15.2%; one stock, viz. St. Paul
B. Ingersoll, of Stroud & Co., lac.,
Fire & Marine, declined the; same
was elected; President of the Philr
as the average; eleven stocks de¬
Australia and New Zealand clined less .than < average, while; adelphia Securities Association at
one
stock, Insurance of North
on
Reserve
,
Other assets pledged to secure,
deposits and other liabili"
chase
fire
•
-12.4%
guaran¬
teed, pledged to secure de¬
posits and other liabilities-
curities
25
Paid-Up Capital
>
•
Government
/'
1
),
value):
tions,
The
'
■
I
92.92
177.20
-
—
53
/
126.7
161.0
•
52y2
I? Average of 8 ——;
•
i
assets > (and securities
loaned)
(book
U.
;
of
par
Pledged
;
-•
-
consists
'
1
'
59
58%
/13% xi■;
92V2
49% ;
172 v
\
-
CAPITAL ACCOUNTS
Capital!
Fidelity & Guaranty
15.2%
$33,828,398.72
...
a
[
Bonding
Fidelity & Deposit
-
1,047,878.96
.
Other liabilities
>
i
'
checks, etc;)•
-total-
U. S.
74y2
■
—
—
11 Vz
61V2
19%
;
-3
Continental Casualty^—..*3
Seaboard Surety —3
American Casualty
Mass.
:
i
,
—
>
Indus. Av.
*•
60.8-
.
•
-3
Airierican Surety——
*
Dow Jones
j
comparison, taken<3>
ADVERTISEMENT
in conjunction with the first, in-t
,-rr 1.9 :,r3.
dicates that the lag has been conNotiee ijf1 the '6ale of Bonds ;
H- 3.9 3 , fined to the period since 4942/ a
(RE-ADVERTISEMENT)
~
period of excessive fire losses, for,
Sealed- piVposals will be received In the
15.2%
j over the longer term insurance office of the Clerk of the Board of Edu¬
stocks have appreciated consider¬ cation of Jackson Township Local School
District, Stark County, Ohio, O. C. Hoverably more than the general mar-r land, R. D." No. 4, Massillon, Ohio, until
—41.8%: |
ket as measured by Standard & twelve
o'clock pooh;/February 7,7l947^i(Mr
-7L7.4;
the purchase of bonds of said school dis¬
—11.0 ^ r poor's 402 stock index. It is also trict in the aggregate amount of; Three
oi
interest ,tq 7 observe that thei
Hundred and Fifty Thousand ($350,000.00)
"9.4733
—
.
Maryland Casuality
deposits of individ-
nals,
corporations$21,096,885.98
Time deposits of individuals,
—
~
LIABILITIES
y
r-
—11.0.
,'
-
since
also
—11.8
:
,56%
.
ket
Standard
1
—13.3
51%
:
*
:J
; 101.4
+37.7%
—11.8 J f
51%
;
3_i—
-
119.5
31, 1946_>'
;-
It. is obvious that both fire and
,
dex
—14.5
56%
97
89
*;
;
low::^/,/
'86.8
Change
I
,
•
$5,598,623
"*
s-
4
Fire Stocks Cas. Stocks 1402 Stocks
"
December
—15.2
56 - 36% '
—
—
i
o
•
63%
41
:
V.r
;
1942. Lows
—16.1
i
;
:
—16.7
25V2
Prov. Washington
3
1
—16.8 ;
:
River.
,
i7.73o j. casualty stocks have lagged con-, however, have appreciated; suhriderqfely^ehhtd :th&!gen£ralihar4 'stantially -more than have fire
53
106%
22%
62
122%
Jt-1
-w—
-67
-
»
,;4r I.E
50
26
31
J
—18.4
..
30Vi
106%
60
3
"
Standard & Poor's Weekly Index
r-vi
—20.2
73
;
•
.
122,198.22
—
.
—36.7%;
—22.0.
^
1
W;/"
Long range market comparison
—33.6 7
25%
'89%./
-v—-t..—
New Hampshire
»
-VV'J ;•'. ♦•,*•£*
7 V."f« * :V-\
—--_3l—ll J
Springfield F. & M. -3--——•
Security Insurance '
Aetna Insurance.
owned,
.
.
32%
Agricultural Ins. ;^r—.
Glen.,Falls
7,223,831.86
_—_—
premises
none; furniture and,
tures and vaults-.. _j.i,
•
Boston Insurance-79,
Phoenix
process
12.5%.
% Change
20%
.
'.ri;
i,
capitalization is $624,-: of insurance stocks with .indus¬
350 higher than the $4,974,273 of
trial stocks may be of interest,
Dec.
31, j 1945, an increase of and
are
therefore presented be-
.
-
Continental Ins.
institutions,
In-vH.
balances,
reserve
Banking
{;
997.50
•
799,82®
Present
28%
;
„
'69
—-
---»
Fidelity-Phenix
.
balances
tf
>.
notes,
—
2,399,40®
"
17%
24%
'
•
35%,
National Fire
and
guaranteed
"Obligations/of .States/anil
political
Hanover Fire
,
$2,399,40®
during;
66 y
.
26%
'
—
U. S.' Fire
and discounts (includ-
ing $1,258.59 overdrafts)
■
90 / /
26%
31%
,;»•
American\——
Association V——
Fire
Superintendent
to the
pursuant
Bankers & Shippers——
American Equitable _——.
follows:
as
,
insurance
12-31-46
12-31-45,
Great
50
xnade
•"Fire Insurance Stocks'
•
tal became
$1.05 convertible preferred ($5 par)
percent decline.
AcVprl PnpAfl
H<.
Franklin Fire
Broadway, New York/ 4, New York,
at the close of business on December
31,
1946, published in accordance with., a call
•
their
tabulation
;
-
Home Insurance
Underwriters Trust
of
■
;
stocks, arranged in the order of
»
..
■V/
widely
000^000 of contributed funds, capi¬
on
r
fire insurance
casualty
3
arid
stocks
After recapitali¬
Comrnqn stocks".($l par)
the year .1946 of 25
Individual insurance
effected
was
C.>nd 1,474,45p, shares
zation, which provided about $24,-
July 3Q, 1946, whereby R. F. C.
—11.2%
shows the market 'changes
•
ac-,
common.
$2.10;cumulative conv; prior preferred ($10 par).^™-—:
161.0
..
which
F.
of the
affecteci by. the recapital¬
was
ization
181.3
*
-
—11.5%
decline of
a
135.0
tion
the
3..v'
/■./:.;;
Maryland Casualty's market
Casualty Stocks
119.53 n
-
8.1% in the Dow Jones Industrial
.
by
24%; decline of Fidelity, & De.posits
stocks closed the year
January 2, 1946.•
The addition of this New York
;
Road
DEUSENi
Insurance Stocks
—
:
*
•
i
insurance
Fire
14.
to
VAN
A.
11.5%
,i|ielr394$
year rend prices, and; casualty^ insurance stocks 11.2%, as ineasur^d
by Standard & Poor's weekly indices, as follows: y 13/v7
of that hank has necessitated the
offices
E.
This Week
ever-in-
creasing demand for the services
•
market indebtedness of around $30,000,00®
was retired, As of Dec. 31, 1945,
casualty group, with an Maryland's capitalization consist¬
Average; decline of 12.4 %v Mary¬ ed of 270,000 shares of $3 cumu¬
land
Casualty made- the worst lative-preferred, $10 par,; and 2^~
performance
with
a
"drop
of 274,273 shares of common, $1 ^>ar*
41.8%;; best performanee waS' the All the preferred was owned by
in
In the
-
BALTIMORE, MD.. —F.'W.
Wpghtson,
President
of
Balti¬
1945F,
Thursday, January 16,
appreciated
America,
price."
Provident Savings of
Bait. Adds 14th Office
;
-X,i:
THE COMMERCIAL & FINANCIAL CHRONlcLE
278
,
'
/
•
-
"■
Jackson
Township
Local
School
District, Stark County, Ohio.
"
O.
C. HOVERLAND, Clerk
R. D. No*. 4, Massillon.vOhla V J r
uVolume. 16S
■
vy
'(
-
Number-4560;
'
!
THE COMMERCIAL & FINANCIAL CHRONICLE
::
270
;V::;
;S4'
i'YP:
*:ir'
:•»
T^eiv Issues
.
>»
■;••*.►■•'.
■».
•
'
""
—.
East
;-i'-""V
<
'
V
'
y
r" \
*
"
l
^
'*■
/
w ?-
' ■/* ■'
\
East
Bay Municipal Utility District
■'" r"''' L-V';• fy'-.
1
.:
'
'
••
\
^
••■r-ipp'i■
Aqueduct
/*> v ^
'PP-PPi'P
California
^
* .'••'■■■••
]
"'5'"
"I
1 /l
•?'I.-V
Bonds numbered t td
*
'•
"
'*
.
"V
,'' *.
*'y«y-—§4.
Bonds numbered
prior
on or
,
•' "
4
r-,'
-v
^
"•
,
'
'•
•1
'>■'•
'
1
;> _•*''
1
c
v
^
''.!':\y'''-.;V\v:'
,
i
*
j
Due February 1, 1951-87, incl.
1 to
13970, inclusive, Maturing by their terms on or prior
to Febroary 1^ 1972, are not
subject to redemption prior tp their ^xed maturity
dates,. Bonds; numbered 13971 to- 23500, inclusive,
maturing;on^ and after
February I> 1973^ are subject td call and redemption, at the option of the
are not subject to redemption prior to their fixed
maturity
date?.. Bonds numbered 7201 to I2000^v inclusive^ttiiuturing on ; and .-after
February ;: 1, 196?,; are: subject to call ^ and redemption,' at the option' of the.
District,: on 30 days' notice, as: a whole, or in part, in inverse'numerical order
from higher to .lower, on.
February I, 1962 (but noty prior thereto), at a .
premium of 2%%* and on any interest payment date' thereafter at a
premium
fedueihgv%: of 4% for eaih year from- date-of fedeftiption to date ^of fixed V
maturity,: -'
>
'• • s
'
';.v; ",l v'^"
"
.
:
*
Dated -.February-1,1947
f 'u
7200*;induMVft'fiiattitt^
toFebruary 1, 1962,
1
VA% VAJo and 2% Bonds
Due February 1, 1948-72, inch
»
s
1
,
Sewage Disposal f
w
'
;
Date^Febraaty ly lSKi "J
'
4
*
P'Y^:
*%% an4 Ix/2% Bonds
"'•C
"
,
Special District No.l
"
Second Mokelumtie
1 r\*
Bay Municipal Utility District
California
"
$23,500,000
^
Ay
.
District^ otf 30 days: notice, as a whole, or in part, in inverse numerical order
from higher to - lower, on February 1, 1972 (but not prior theret6),at a
premium of 3^4%, and on ,any interest payment date thereafter at a premium
reducing V4 of 1% for each year from datfi of redemption to date of fixed
maturity.
Principal arid semi'fenual• interest (February 1 and Augpst 1), payable at the office of the Treasurer of the East
Bay
|
the office bf the Fiscal Agbat of the
/
East Bay Muuicipai'JUtffitjrDistrict in New York City at tfie holders
option.
:
'
Coupon bonds in. denomination of $1,000 registerableonly as to both principal and interest.
r
•
.
"
^
-r •
-
imd State of California Personal Income
;
Amounts,
V r
:
Coupon
M'
■
r
our
opimonf for Savings Banks and Trust Funds in California,
maturities and yields
accrued interest
to
be added)
amounts, maturities and yields
\
!
Due
-
-
Ericeto
R«ce
Coupon
Yield
Due
Rate
1949
iy4
V
1951.
"im
.75
>l3/4
1953
-13/4
>
/j 1%
mr
.85
'
1%
1952
1958
.95
1959'
\Vz
1.25%
1.30
.
Rate
1965
-
13/4
1.45
•
1960
-m"r
1.10
1961
MP,
1954
l3/4 /
1.15
i y2
1.20
1963
m
1964
13/4 V
-
1968
1.50
1962
1955
13/4
1967
".V
■
Due
Rate
.
1.60
13/4"
1954.
983/4
13/4
1955
..
1956:
981/2
1971:
1^/4
m
1957
1958
981/4
1971
.
98
1.65
"
;
.95%
l^ii
Due
1963
1.05
2V2
'
1.15
2/2
21/2- • 1.20 "
1.25 i
21/2
2/2 r- 1.30
1.35
21/2
1.40
m
■-
Bank of America N.T.&SJ.
"
R.H.
y
Bankers Trust Company
Btylh & Co., Inc.
.
1977
2
2.00
1978
2
2.00
.
1968
1970
M
M
1972
1961
:
1.55
1973
m
•
1,60
-
1971
!
Dean Witter & Co.
R. W,
Drexel & Co.
Pressprich & Co.
v;
Equitable Securities Corporation
•
••
Trust Company of Georgia
E. M. Newton & Co.
r(
;
1984
2
98
1985
2
12ii
1.90%
1986
1987
2
99
983/4
981/2
98%
2
1.95
2
'*2 PmP
98
1.95
Estabrook & Co.
Harris Trust and Savings Bank
Harriman Ripley & Co.
Smith, Barney & Co,
Union Securities Corporation
Heller, Bruce & Co., Inc.
Portland, Ore.
Braun, Bosworth & Co.
Incorporated
'
G. H, Walker & Co.
Central Bank
Roosevelt & Cross, Inc.
Lyons &Shafto, Inc.
Incorporated:
Stone & Youngberg
William R. Staats Co.
Stranahan, Harris & Company
;
1
Incorporated
The Continental National Bank & Trust Co.
—
of Salt Lake
Martin, Burns & Corbett, Inc.
,
Gintber & Company
l-t'r.
TT
sJJt!
The National Bank of Commerce
j
January 15,1947
1983
-
Stroud & Company
'
!
2
2
981/4
The First National Bank
Oakland
Hannaford & Talbot
,
2.00
993/4
991/2
99%
of Seattle
j
Lawson, Levy & Williams
1981
1982
Mil 98i/2,
Kidder, Feabody & Co.
^
Lee Higginson Corporation
Corporation
2
2
Incorporated
Seattle-First National Bank
California Bank
>
First of Michigan
1979
1980
M
m
American Trust Company
of
-7---;^
1.75m
m
m/i
M* 99
M
983/4
2
1974
The First Boston Corporation
ChemicalBank &Trust Company
Salomon Bros. &Hutzler
Price
2.60%
lJO'
1969
Angeles
Merrill Lynch, Pierce, Fenner & Beane
2% |
1.75
1966
of San Francisco
,
''
1976
r
or
m
1.45
The Chase National Bank
The Anglo-California National Bank
MouIton&Company; / ; Weeden& Co., InCi
<>{ Los
|:i,65%s;
Yield
Rate.
offered tvhenr as and if issued and received- by us and subject to approval of legality by
Orrick, Dahlquist, Neff, Brown & Herrington, Attorneys, San Francisco, California. ;
'
Security-First National Bank
Due
are
The National City Bank
Company
Coupon
Price
ife
1967
.
of New Yak
The Northern Trust
M%
Yields
or
1964
1975
Messrs.
be added) ^'
1965
1962
">
.
The above Bonds
to
Coupon
Rate.
;-
1.5Q
-1960
1.70
to
Yield
MP
1959
"
:
.
1952
.
1970
1951
1953'v
99
1969
£g$*'
:
99V2
i3/4
,
.
I.75:
l3/4
-
(accrued interest
Price
Coupon
'
'or Price*
lH.%" U75%
-
.1966
:
1.40
1.05
i
Coupo n^|,i Yield, y
Due
; v
:
l%%
1950
Price to
-Yield
.
.
$635,000-due. each February i, 1951-86, incL
$640,000 due^ February. 1, 1987
$480,00Q due .each February 1,1948-72^ fncl.. ;
.
<>
Legal intjestrneiitYin
•
present Federal
statutes, regulation* and court decisions*
faxes under existing
C. N. White 4 Co.
■»
City
Donald MacKinnon & Co.
"
y
Sbuman, Agnew & Co.
280
■
traditionally
associated
establishments,
he
service
their
with
pointed out.
Says State Does Not Have Power to Maintain
2. :;V
The forgotten men in the busi¬
ness
world today are the1 white
Real Estate Securities
;..:
Control Over Hotel Transient Room Rentals
Assemblyman D. Mallory Stephens, author of New York's little
workers and the investors,
collar
OPA bill and Chairman of the Joint Legislative Committee
Douglas declared. Having as¬
sisted in the reorganization of
more than 100 properties, includ¬
Mr.
Douglas of Statler Sees 1947 As Good Year for Hotels
in 1947 is excellent, accord¬
outlook for the hotel industry
The
ing to Arthur F. Douglas, President of the Hotels Statler Company,
and
owner
operator
chain
of
of
v-
profits from what he called
the "Crazy money'' of the war
period was definitely; oyer for the
hotel industry.
The hotel trade
has gone "over the hump" of easy
money in the cycle of trade, he
pointed out. This does not mean,
however, that there need neces¬
sarily be any serious decline in
the volume of business or in prof¬
lust
a
rec¬
ognized first
class
hotels
throughout
the
icountry.
1
The Statler
Hotels, in fact,
Mr.: Douglas
said in
an
clusive
i
v
ex¬
its, he said.
interwith
ew
a
"ChroiniqleV
[ago,fare plan-
Arthur F.
fning for a year
bus-"
good
reflects,
of
"
^
in a mirror, the state
as
generally,
conditions
business
Mf.
Douglas
The volume of hotel trade
iness.
declared. Naturally
then, certain qualifications must
be met if the hotel business—just
Douglas
business
as
to
lines—is
other
in
maintained at high levels of
activity during the coming year,
be
Mi?; Douglas pointed out. If labor,
management and government do
not place obstructions in the way
of
trade, there is no reason at all
why business shouldn't be real
brisk
everywhere in
the land
throughout the coming year, he
thought.
Not
hte
infallibility
for
fact,- pointing
out
claiming
views,
in
emphatically that of
very
course
fie could1 be wrong,
Mr. Douglas
said
era of
v>.■■..v.;
i
what
men
true,
was,; he said.
Elevator
used to earn $20 a week but
it
now
they get $35, he declared.
But, at the moment anyhow, oc¬
cupancy in the Statler Hotels is
running around 94%, he revealed.
However,
should
it
in
kept
be
mind in this connection that in the
hotel,
large
average
100%
occu¬
because of the constant re¬
pairs that must be made is prac¬
tically ah impossibi.lity, he
pancy
Another
,
of
round
the
sort- of
like what it was
a decade ar\d two ago, he pointed
out." Hotels generally have been
using their war-time, earnings to
pay off their obligations, he said.
Managements, too, for the most
is nothing
part are composed of men who
learned their lesson in. financial
matters connected with the busi¬
during the difficult days aft¬
ness
Douglas de¬
erthe '29 crash, Mr.
clared.
10 % increase in' the rents
for transients, for exam¬
ple,. would be required to offset
the $500,000 which were added to
•
v
Likewise^^imoth^ rounds of
un¬
.
the big
industries would injure business
in general and, eventually, very
likely the hotel trade, he said. The
Ford Motor Company can't go on
losing $65,000,000 a year, he de¬
clared.; There is a definite limit,
SHASKAN & CO.
Members New York Stock Exchange'
j
Members New York Curb
40 EXCHANGE PL., N .Y.
•'• -vj
j"
Exchange
Dlgby 4-4950
too, to the wage increases which
even a giant concern like General
Motors can pay to its help, he
stated.
It would indeed be bad
the
for
Boll Tohtypo NY 1-953
\
economy
as
a
whole if
a
like General Motors, in
should run into serious fi¬
nancial difficulties, he thought.
company
fact,
Though
Firm
Trading Market $:
Real Estate Issues
J. S. Strauss & Co.
155 Montgomery St., San Francisco 4
ttele. SF 61
& 62
; EXbrook 8515
it
might
at
seem
time that the hotel industry
this
faces
traveling
men
on expense
accounts
will not find it a hardship to pay
which must be charged
the rates
to
make
SPECIALISTS
IN
—
.fXf ,'C>
REAL ESTATE
I
,.
s
.
...
'
-r
iri.. this
apply
he
case,
Offering of a new issue of $12,000,000 East Bay Municipal Util¬
ity
District
California
Second
Mokelumrie' Aqueduct 1%% and
told .the
"Chronicle" this week.
-
The New York bill would set up
a
price
control
commission
1% %
maturing Feb. 1,
inclusive, is being
made
today by a nation-wide
group of 51 underwriters, headed
by Bank of America, N.T.&S.A*
and National City Bank.
and
staff in the state only in the event
1948
that the Federal OPA mechanism
to be scrapped
altogether, he
the
hotels,
upon
up
East
tee, however, it is reported, con¬
that the State
law does
sive.
Angeles, Cal., Houston, Tex.,
Atlanta- Ga., and Hartford, Gonn.,
Los
and .growing cities.which
ample first class hoxel. ac¬
commodations, will very likely
get
new
hotels,
Mr. Dougles
thought. The Hotels Statler Com¬
pany, for instance, has purchased
a site for a hotel in Los Angeles,
large
lack
,
Construction
will
commence as soon as. factors hav¬
ing a bearing on both the quality
revealed,
thatwill
required are judged
he said. *• v
be
to
be
proper;
The Hilton chain of hotels has
been
mu-
~
Douglas said.
Mr.
The feeling is
widespread in the industry today,
however, he said, that it pays
better to buy an old building than
,
Municipal Utility Dis¬
trict'Special District N<riVI, ;CaIiAssemblyman John J. fornia
Sewage
Disposal
21/z%r
Lamula, legislative representative 1%% and 2% bonds, maturing
of the Joint Rent Action Commit¬ from Feb.
1, 1951 to 1987, inclu¬
to
However,
put up a new one.
tends
cover
transient hotel
even
if
such
room
rentals
The
rentals,
should
new
a
building
stitute
a special case, and so con¬
sequently does become. operative
on the lifting of the Federal ceilings.
'
\
ing prior to Feb^l#: 1962, are not ■'
It is known that the hotels, be¬
subject to redemption prior to
lieving that State controls will not
fixed maturity dates. Bonds ma¬
be imposed, are going ahead with
turing on and after February: V,
plans to increase the rates on their
1963, are subject to call and re¬
transient rooms from 15 to 25%.
demption at the option of the dis¬
In some cases, the transient rooms
trict in inverse humerical order,
constitute only a small percentage
as a whole or in part, on Feb;
,
..
the kind
hire for years to
terest
transient
(Special to The Financial
Austrian Blocked
fixed maturity.
Chronicle)
The Sewage
ity dates. Bonds
after Feb.
maturing on and
1, 1973, are subject to
MAINE— Alfred call and redemption at the option
of the District, as a
Building.
whole or In
numerical order,
days' notice on Feb. 1,; 1972,
part, in inverse
Clifford
30
but not
prior thereto, at a pre¬
mium of 3%% and on any
Murphy Co.
(Special to The financial
est
Chronicle)
inter¬
payment date thereafter at a
MAINE—Thomas premium reducing Va of 1% for
and
Thomas H. each year arid fraction thereof
Ranaghan have joined the staff of from date of redemption to date of
Secretary Snyder similar to Clifford J. Murphy Co., 443 Con¬
and
those written
in connection with
of the countries
defrosting
the
the
at
ir 1972 are not subject to
redemption prior to fixed matur¬
on
Two With
1987
to
ruary
L. Wagner has become associated
with the staff of Baldwin, White
& Co., Chapman
2% for
maturities and at
99% to 98
maturities.
The, bonds maturing prior to Feb¬
for.; the; 1980
Exchange.
PORTLAND,
"Chronicle")—Secretary
the
the 1951 to 1979
dollar, prices.*or from
With Baldwin, White
WASHINGTON, Jan.15 (special
to
Disposal Bonds are
priced to yield from .95% to
(Special to The Financial Chronicle)
Accounts De-Frosted
payment date thereafter at
premium reducing Va of 1% for
each year and fraction thereof
from date of redemption to date Of
a
With Howard Labouisse Co.
Stock
Federal
Bank
Reserve
of
soon
has wanted to
two§strictly
rooms.;
richs & Co., Hibernia Building,
;; «• members, of* the New Orleans
which previously named in the License.
Copies of the letter are available
obtain very
of help it
has "only
1962, but not prior thereto,? at a
premium of 2V2% and on any in¬
would cost only
isn't good business;
Aqueduct bonds are priced
yield from .65% to 1.75% for
the 1948 to 1966 maturities and;
are
offered at dollar prices of
from 99 % to 98 for the 1967 to
1972 maturities. The bonds matur¬
to
con¬
his opinion that the : NEW
ORLEANS, LA.—Hilliard
buying of an old property at
E. Miller has been added to -the
$7,500,000 in a community where staff of Howard, Labouisse, Fried $9,000,000;
Bay
Former
he gave it as
,
better hotels to
bonds;
1972,
to
designated the Austrian National
give the sort of Bank
as
its- certifying agent.
PORTLAND,
M.
Henderson
fixed maturity.
Street, Mr. Henderson in
past was with Frederick M.
gress
the
Swan & Co.
With Swan Stickley Staff
(SpeclaL; to The; Financial' Chronicle)
Townsend Dabney Adds >
| PORTLAND,
PORTLAND, MAINE—Howard
C. Jordan, Jr. ? has become con¬
nected with Townsend, Dabney &
Tyson, 184 Middle Street.
-
;
.
MAINE —Eldred
has joined
W. Larkin of Caribou
the staff of Swan,
Stickley & Co.,
75 Federal Street,
Boston, Mass.
*•
Knickerbocker
Hotel
OFFERINGS WANTED
Co.
Motel Sherman 5/57 W. S.
Broadway-Trinity PI. 4l/2s, 1963 WS
Savoy Plaza 3s, 1956 WS
Broadway & 41st St. 4%s, 1954
Sherneth Corp.
Court
Lott
;
Hotels
Co.
100 North La Salle St. Bldg.
i
•
-
-
»-
•>
•
•
,
&
•
.
.
Land
Trust
Units
Voting Trust Ctfs.
FIRST LA SALLE CO.
Remsen
St.
Fuller Bldg. 2%s,
3|4s, 1950
1949 WS
Gov. Clinton 2s, 1952 WS
Grant
4424
Tele. CG 660
-v
&
5%s, 1956 WS
Beaver St.
.•
4Vis, 1951 WS
Windemere-92nd St, "3s," 1946, rv.V*.
51
East 42nd.St.
3s, 1956
'
79
1959 WS
I
Realty 5s, 1949 WS
Broad St. Bldg. 4s, 1956
500
5th Ave. 4s,
HELP WANTED
•
POSITIONS WANTED
WS'V®
80
Bldg. 5%s, 1963 WS
National Hotel Cuba 6s,
Pittsburgh Hotels Common
Wall
Westinghouse Bldg. Part. Ctfs. CBI
•
;
WS
1961 WS
':'f
.
OTHER CLASSIFIED ADS
Amott, Baker & Co.
SEE INSIDE BACK
Incorporated
Il So. La Salle St., Chicago 3, 111.
tel. Central
''
Bldg..2l/2s, 1957 WS
Lincoln
Transportation Bldg. (Cgo.)
f
neces¬
to make the New York bill
SECURITIES f
:
-
An" amendment would be
sary
he
that
ease
—
City Bank Group
Dffer $35,500,000 Bds.
^_
areas^ he stated. 'Cities like thought.
lected
'
'
♦.
■
the labor, market will New York.
just enough to enable the
The Austrian Government has
too,
f
Rents.
on
The same group also is offering
another new issue of $23,500,000*
being caught in Snyder announced to day that
a vicious squeeze between declin¬
Austria has been-added to the
ing business and mounting costs, list of countries whose blocked
actually the prospect is nothing of accounts may be released under
the
certification
sort, Mr. Douglas thought. the
procedure
of
Compensatory relief will be forth¬ General License No. 95. This ac¬
coming from prices that must re¬ tion was taken after1 an exchange
main
at
inflationary levels for of Letters between the Austrian
some time yet, he said.
Business¬ Minister of Finances,Zimmerman
they rely for service, going con¬
cerns, either, he felt. It is likely,
<
tee
Federal authorities does not con¬
the possibility of
California & New York
Naf'l
and chairman
stitute grounds for state action,
in .*■ the
reasonable demands upon
1
measure
the Joint Legislative Commit¬
enlarged in recent years
payrolls of the Statler
through the purchase of old build¬
wage
increases
ings on £he theory
that there of the total space of a hotel. One
granted to / employees last; year wasn"
't gofeg to be any ^zeablel -large hotel in a populous upstate
alone, Mr. Doughs said* \
amount of ffew hotel construction,1" city/for instance, has revealed' it
int.
Hotels
SECURITIES
of
be some new
construction; now in carefully se¬
still there is going to
the annual
i REAL ESTATE
little OPA
pointed out. The mere revision of
a single price ceiling, like the one
on hotel transient rooms,
by the
and the cost of materials
a
Bank of America and
to
Assemblyman
D.
Mallory
Stephens, author of the New York
going to be the ho¬
construction after this war
that there was after the last but
tel
industry last year would of course
seriously injure the hotel business,
he declared.
Considerably more
on rooms
are
were
There is riot
he
than
present
the hotel industry at the
time
demands that were made by
-the-labor unions upon the hotel
wage
room
Feb. 15,
on
ties, Mr. Douglas said he had some '. •' New York State can not—under the powers granted to it by its
little OPA bill—maintain controls over hotel transient room rents
of
the
problems
when Federal ceilings are lifted<?>
—
■
aPPreciauon
which face the men who finance
from them on Feb. 15, according
hotel ventures.
The situation in
.
pointed out.
v
150 Broadway
Tel.
BArclay 7-4880
*
rents when Federal ceilings are lifted from them
Hotels, believing State controls will not be imposed,
going ahead with plans to increase rates from 15 to 25%. |
ings,
.
believed that the
he
\
he pointed out.
Before the war, for instance, the
Staler Hotels required only 35%
occupancy to "break even on costs
but now the break-even point is
about 80%, or more than twice
siderably,
representative
not many days
of
(
Hotel costs have increased con¬
sary
i transient
that ran into financial dif¬
ficulties following the great boom
of building construction in New
York and elsewhere in the twen¬
;
Rents,
amendment to State's price control measure would be neces¬
to give State authority to continue price controls on hotel
says
ing hotels and commercial build¬
on
New York
7, N.Y.
Teletype NY 1-588
COVER
•
Volume 165
-Number 4560
THE COMMERCIAL & FINANCIAL
CHRONICLE
Cincinnati Stock and Bond Club Election
Party
National Officers Past and Present—Ed
Welch, .Sincere & Co., Chicago, Secre¬
tary; Vic Mosely, Stroud & Co.,
Philadelphia, President; Henry Arnold, Clair S. Hall
President; Ed Parsons, Wm. J. Mericka & Co., Cleveland,
Graham, Bankers Bond Co., Louisville, Past President.
& Co.,
Cincinnati, Past
Past President; Tom
J*red
Latschaj Frederic Latscha & Co., Cincinnati; Arch Montague, W. E. Hutton
Co., Cincinnati; George Grady, John E. Joseph &
CoCincinnati; Mimi; Walter
Dehner, Browing & Co., Cincinnati; John Muehlenkamp, Van
Lahr, Doll & Isphording, Cincinnati; Ed Parsons, Wm. Ji Mericka & Cb.; Cleveland. y
r Vv
l?$ ^
&
Jean Bennett, J. E. Bennett &
Co., Cincinnati; Harry Vonderhaar, Westheimer
& Co., Cincinnati; Vic
Mosely, Stroud & Co., inc., Philadelphia; Joe Work, Weiss,
Work & Co.M Cincinnati.
Joe Vasey, H. B. Cohle &
Co., Cincinnati; Fred Latscha, Frederic Latscha &
Co.,
Cincinnati; Harry Vonderhaar,. Westheimer &
Co.; Cincinnati;;President of Cincin*
nati Traders Ass'n.; Vic
Mosely, Stroud & Co., Inc., Philadelphia; Tom Graham,
Bankers Bond Co.,
Louisville; Chas. Odenweller, Jim Duffy. \
Lee Staib, Geo. Eustis &
Co., Cincinnati; George Grady, John E.
Joseph &
Cincinnati; Paul Moreland, Moreland &
Co., Detroit; Mort Cayne, Cayne &
Cleveland; Ralph Bloom, J. F. Reilly &
Co., Chicago; Jim CrumVercoe &
Columbus; (background) Tom Hughes, Edw. Brockhaus &
Co., Cincinnati, vy
Co.,
Co.,
Co.,
;
#
•
y :
•
i
'
,
Bill
Middendorf, Middendorf & Co., Cincinnati: Jack
Neumark, Middendori &
Co., Cincinnati; Bill Cummins, A. E. Aub &
Co., Cincinnati; Geo. Happley, C. H.
& Co.,
Cincinnati; Harry Hudepohl, Ballinger &
Co., Cincinnati; Lloyd
Shepler, Merrill Lynch, Pierce, Fenner &
Reiter
S, HaU &
Beane, Cincinnati; George Oswald, Clair
& Co., Cincinnati; Geo.
Co.f Cincinnati; Fred Becker, Field, Richards
Minnlng, Harrison & Co;f Cincinnati; Tom Tritten. "
"
•
y
,rEd; Welch, Sincere & Co., .Chicago; George
Grady, John E. Joseph & Co., Cincinnati; Lee Staib, Geo. Eustis & Co.,
Cincinnati; Paul Yarrow, Clement, Curtis &
Co., Chicago; Fred Latscha, Frederic Latscha &
Co.; Cincinnati; Fred Korros, West- j
heimer & Co., Cincinnati; Mort
Cayne, Cayne & Co, Cleveland; (background)
Henry }'
Arnold, Clair S. Hall & Co., Cincinnati.
John
Joseph, John E. Joseph & Co., Cincinnati; Bill Berlage, H. B. Cohle &
Co.,
Cincinnati; Jim Crum, Vercoe & Co., Columbus; Ralph
Bloom, J. F. Reilly & Co.,
Chicago; Hi T. Mallon, J. A. White & Co., Cincinnati; George
Kountz, J. A, White &
Co., Cincinnati; Arch Montague, W. E. Hutton & Co.,
Cincinnati; Mort Cayne, Cayne
& Co., Cleveland; Bob.Jameson, Pohl &
Co., Cincinnati; George Grady. John F.
Joseph & Co.,Cincinnati; Xhet Terrell,- Westheimer &
Co., Cincinnati;
Staib*
Ceo. Eustis & Co., Cincinnati., '
"
f
•*,
—
y
-
(Thiirsdayv /January I64 1947
provements
Some;diesel
recent
years.
has been in¬
stalled and more is expected.
A
large "number of new freight cars
have been put in service.
Heavier
Railroad Securities
over
iling and the Labor laws
power
By PAUL II.
NYSTROM *:,
$4$® ^
Professor of Marketing Columbia University
rail has been adopted as standard
on the main lines;
Long life ties
have
Southern Railway Securities
ducing grades; and curvature, has
been
reached
and the^
and longer year's earnings were estimated at
just about $5.00 a share.
It is
term earnings potentialities. These
analysts point out that the shares probable that actual results will
come close to this estimate.
With
even at current levels afford a re¬
coming under greater
turn of 6.67% on the basis of the expenses
control, and with the benefits of
current $3.00 dividend rate, which
the rate increases effective Jan. 1,
Is considered as eminently safe
pects
favorable intermediate
and look
even further strength as pub¬
confidence in well situated
the visible future,
over
for
lic
months through No¬
vember earnings
on
the stock
amounted to $3.17 a share which
For the 11
•
apparently without the bene¬
of any tax carry-back credits.
the estimate of earnings filed
was
fit
In
Commerce
Commission some months ago in
connection with the request for
fifeight rate increases the manage¬
ment contemplated a carry-back
credit for the year amounting to
Interstate
the
with
cfose to $1.00 a share on the com¬
mon.
With this credit the full
•
.
to show earnings
of between $7.00
$10.00 a share this year.
^
While earnings this year should
cover
the present dividend rate
/two: and a half to more than three
times there is little hope in most
and
returns.
rail equities
1947, it has been variously esti¬
mated that the road should be able
quarters that the disbursement
might be increased. - While fi¬
nances
are
strong the road still
has
some
debt problems to
face.
of Southern was
the industry to
aggressive program
retirement and a good job
The management
of the first in
one
embark
of debt
on an
already been done. Since the
beginning of 1941 more than $70,000,000 of non-equipment debt of
has
fixed
charges
its leased lines
In the process,
have been cut by
In one respect, how*
the road has been unfortu¬
about 30%,
Common & Preferred
ever,
nate. The bulk of its
unusually
ing
bonds
even
Dearborn
C6rp»
Ocean
Telephone >
444
.**'*>
■: ■'
Southern
Atlantic
•
MEMBERS
•
Stock
and other
Exchange
leading Security and Commodity Exchs.
120 Broadway, N ew
231
So.
LaSalle
York 5, N. Y,
St., Chicago 4, 111.
Armstrong Rubber Co,
American
Optical Co.
Talon, Inc.
]
Missouri Pacific RR. 5%s
H. H. Robertson Co.
Van Tuyl & Abbe
f
72 WALL STREET
NEW YORK 5 "
Telephone
HA 2-6622
;
come
•
,
at
\
NY 1-1499
■
^
prosperity in higher
■V
_
^a'r Labor Standards Act; and (3): abandonment of minimum
®n
of boosting
wage as means
Retailers have
r
business
■1
'
of the most favorable as¬
freight traffic potential in
Despite political
pronouncements to the effect that
an inequitable freight rate struc¬
ture has strangled the south there
has been a very pronounced in¬
dustrial expansion over a period
of years.
With its lines virtually
blanketing the southeast, South¬
ern Railway has reaped the full¬
est advantage of this strong secu¬
lar trend. Steel mills, aluminum,
automobile plants, the paper in¬
dustry, and plastics and synthetics
are
among the important enter¬
prises that have added their influ¬
ence to the older textile industry
in this area.; Many: of these are
still in their infancy and received
accrued interest
and
Both! issues
turities.
oversubscribed.
v
for all
have been
'
debentures will
The balance
be added
eral
of
Southern
is
e r e
a
well
as
be
re-
and the out¬
.
themselves and for/other
employ¬
but also for the great major¬
ity of employees who have obvi¬
ously become unwitting-pawns in
the great labor disturbances en¬
gineered by their leaders. Retail¬
ers,
hope thatdur¬
•
ers
ing
ing
the
com-
and
1946 the worst
labor conditions such
labor
.
had in recent years is not good for
the
H.
Paul
Nystrom
may
j
"A" 4s 1993
Bond
pn
to
final
Southern
consideration
picture
on
sion and
*An address by Dr. Nystrom be¬
fore the National Retail Furniture
Chicago, 111., Jan. 8,
i947i^f
.
and Management
There
are
now
a
good many
thinking people who believe tnat
present labor evils stem directly
from practices not only permitted
but
CMARANTEED RAILROAD
sums
spent
on
4
'
•
$25
per
share.;
New York Security Dealers Association Elects
Unlerberg President"
21st Annual Dinner Scheduled for March 7th
{
.
,
-
Clarence fr Unterberg of C, E. Unterberg & Co, was elected
President of the New
YorK
Security Dealers Association; Philip L.
CarrctofCarret, Gammons ^ Co., was made Vice-President; Ceorge
l<h
vV
j
Craigmyle, Pinney to Admit
c. E,
Craigmyle, Pinriey & Co., of
1 Wall Street,* N. Y.. City, mem¬
bers of the. New York Stock Ex*
change,
-
Unterberg
Philip L, Car ret
George Geyer
W a 1X e r
partnership as of Jan.
vail V admit
Beecken to
23.
VargaEsky-Pads
;
B. $. Lichtenstein & Co., 99 Wall
in
the
capital im¬
randa, with the Esquire Varga-girl
on
the coyer; Tke pads may
request,
»
be on
■' < )
SEABOARD
1. h. rothchild &
co.r
Member d Rational
Association
of Securities Dealers. Inc
.
;t4v
•
Harry R. Amott
Geyer of Geyer & Co., Vice-President; John J. O'Kane, Jr., of John
J. O'Kane, Jr, & Co., Secretary/ and Harry R. Amott of Amott^
Eaker df Co. Inc., Treasurer.
*
I
The following men were elected governors for three-year terms;
Oliver J, Troster of Troster, Currie & Summers; Herbert D, Kno£
of H. P.
'FRISCO
j Telephone BOwUnf Green 9-6400
'
Teletype NY 1-1063
page
Upon completion of the finan¬
cing,
outstanding
capitalization
will comprise the $50,000,000 de¬
bentures and 5,922,196 shares of
capital" stock with' a par value of
•
Request
STOCKS-B0HPS
legisla[302)
on
acquisitions to meet the
Offerings wanted in all OLD I
New York 4, N. Y.
encouraged by labor
(Continued
\ '■
anticipated postwar demand.'for
the company's products, and for
additions to working capital.
Lee D.
DENVER
25 Broad Street
j
future plant replacement, expan¬
Rail¬
has, beerir the
j Properties of Strategic Nature
Analysis
have
finance
Main Line
Priced to yield better than 6%%,.
we
Restore Balance Between Labor
changed
be effected hot merely for
Association,
as
history of anyone.
country.
Retailers
fundamental
that
in
this
-
hope
year
John J. O'Kane, Jr.
1st Mtg
interest in find¬
company's; gen¬
used
DL&W—Lackawanna RR N J
i
an
way's favorable traffic and reve¬ Street, New Yprk city, is distrib¬
nue trends from here on.
uting ;. "Esky-padsj' for jnemo-
large
First Mortgage
also have
the answer for the good of
4 ing
year a their - customers,j the 140,000,000
/remedy
may people ipf whose service they are
; be
found for employed;
Whatever is good for
the conditions the public is good ;for retailers.
.th ajt
made Certainly a continuance of the
of the proceeds will
to the
funds
Th
.
ma¬
proceeds from the sale will be
The 1961
;
as
1948 to
and the serial debentures at 100%
paricular stimulus frpjtn ; condi¬
tions arising from the war. Indus¬
trial growth of the south was ad¬
vanced 15 or 20 years during the
war period which augurs well for
continuation
,
54 strong;.7 desire
1957, inclusive* arid bear; interest
rates ranging from 1.10% for the
maturity to 1.90% for the
final maturity^^
I957v Th® 25year term debentures were priced
at 100% v a^d accrued •, interest
.0
peaceful labor
.^..conditions.
tures of Swift & Co., the nation's
leading meat packer, The offering,
the first major financing of the
new year, consists of $35,000,000
25-year 2%%
debentures, due
Jan. 1, 1972, and $15,000,000 serial
debentures. The latter mature $1,-
1948
way
maintaining
-
Salomon, Bros. & Hutzier, \as
felling agents, placed-on the rnarf
ket Jan. 15, $50,00d,000 of deben-;
irijhe establishment of -sound
first essential of such conditions is tinding-
some
,
each Jan. 1 from
i A
* ^
wages.
a very keen interest
conditions,
Offer Swift Debentures
500,000
without increased productivity,
wages
and V:
advocates as inflation check (1) repeal of laws
restricting devel¬
opment of national economy; (2) abolition ^ of overtime penalty
j
^
Salomon Bros & Hutzler
I
cause of inflation, since it tends to raige wages and shorten1
hours without increased production and also forces
"payment of ' 4
basic wage to inefficient or marginal workers.
Sees no permanent
4*11;ljl^'VT*! y«Jlux,,7 .|J;)'*,,'4,
i'*
standing serial debentures at par,
plus accrued interest in both cases.
A
Teletype
V" ;
is
pects of the Southern Railway
picture is the long term growth
Ernst&Co.
York
coupons,
prices for the
threat they will presum¬
the service area.
'
f
deeioed iat. 161V2 %
of the
f
tiijne to
|
*,
ably militate against a too liberal
Universal Match
New
considerable
a
least.
dividend policy.
Telegraph
'
,
1
Holds present Fair Labor Standards Act
is basic
materially," the
prospects appear bright for main¬
tenance
of
highly
satisfactory
earnings on the junior equity for
used by Swift j& Go, to redeem on
or about Feb. 14, 1947, all of the
company's outstanding long-term
debt, consisting of $12,500,000 20year 2 %%T debentures due May 11
$112,600^000, * ,o4v non-equipment
debt within the next 10 years. 1961, and $6,250,000 serial deben¬
While these maturities are by no tures 155% to 2.05%, due May 1,
1947; to May '1, 195L inglusiye;
means considered as a potentially
One
■
debt, carry¬
advanced well above par
the process of open market
serious
iv/i'-mmhmip'V;;>■'\-S:-
hibition of closed shop.:
r
reduced
charges
purchases for retirement had to
be moderated and finally aban¬
doned. Thus the company is still
faced with the maturity of some
International
.
high
non-callable. 4 As
Consolidated
:
fixed
efficiency, / and
:
fing drastic amendment, if outright repeal of New Deal labor !
laws cannot be procured, Dr. Nystrom advocates: (I) enumera-:j
tion of unfair union practices; (2) effective enforcement of labor !
rcontracts; (3) restriction of strikes to single plants; and (4) pro*)
4;
...
the company and
has been retired.
Arden Farms
yet. With traffic pros¬
bright, the way paved for
as
greater
President, Limited Price Variety Stores Association
ex¬
penditures look towards a greater
degree of operating efficiency and
the end has by no means been
road in recent years
the
All of these
followed.
•";
of the
system.
A comprehensive pro¬
for eliminating trestles, re¬
been giving a good
securities have
Railway
most
over
gram
account
of themselves recently in a general market which has wavered be¬
tween uncertainty and actual weakness. The common stock has re¬
bounded more than 36% from the lows established a few months
ago
Many analysts see in this performance a growing realization by
speculators and investors of the vast improvement in the status ox
Southern
laid
been
:§4
ers
Knox
& Co.;
David Morris of David Morris & Co., and
Sherman of L. D. Sherman &
according to George 4Qeyer, of
Geyer & Co., Inc., Chairman of the Dinner Committee.>
vY.V Chester E. deWillers, of C.
deWillers & Co., is in charge of
the sale of., tickets.
On account of the widespread interest in thq
affair among out-of-town as well as local dealers, Wellington Hunter,
pf Hunter & Co., has byen appointed jtp handle hotel reservations for
guests'from other cities.
Bajlrpom. of the Waldorf-Astoria,
^
52 wa" strer.
HAijover' 2-9072
^
v
T
1-1293
Co.
The twenty-first annual dinner of the New York Security DealS^
Association is scheduled to take place on March 7 in the Grarad.
:?.VqJum^ l65
Number' 4560 *'
'
m
-
a
*•/;■••«•
;j. i»i:V
.•
iV
■■•.•••
THE COMMERCIAL & FINANCIAL
CHRONICLE
283
population
Economic Progress in
Germany
combined
(U. S. Zone)
Last week the economic
merger of the American and British
Zones of Germany became effective in the
most, constructive develop-;
The oper-
; gan.
t i
The
of
cpmbined
area
turned
to
financial
our
-
1
*.
y '
i,
r>
"-fy*
\f-,'
incurred
Displaced
Persons.;
''
11
»
J
w*v/1„!,>J
"
also
in
The
Without the
basic
chemicals and
products necessary
from the
come
which
we
now
British
have
merger lookis forward to
balancing the foreign trade of the
share...
combined
should be cut in half in
n
reg¬
ular appropriation, as it had been
Financial};
steel,
semi-finished
Foreign Trade Will Be Balanced
They tvere hot covered in the
Drain"Our
yJj
vi'.A-
primarily for costs
are
for
expected that the DP camps would
be largely
eliminated last year.
within
zones
goals
three
Our ; initial
contribution
be higher in order to sooner
eliminate the need for American
If
are
the
an
combined
Zone,
equal
export
realized, the 1947 deficit
years.
eliminated in 1949.
will
•
*
was
.'-1
American Zone.
coal,
figures
are
So
1948, and
far, these
only plans and objec¬
Sufficient food is neCeSsary, if 'German-grown food and food im¬
tives to be realized. A tremendous
Germany is to work herself" out ported for German civilians has help. It is estimated
that
the effort will be required by the
of present bankruptcy; We have been used to feed
the displaced British Zone will
supply raw ma¬ Germans; themselves
and
by
been spending some $200,000,000 a
persons' and a large part of the terials and semi-finished
goods of American and "British Military
year in the American Zone.v The food -money requested' for
dis- some $200,000,000 a year that are Government
in
Germany.
Re~
British Zone has a third greater placed
persons; will,' therefore, be absolutely vital to production in
; (Continued on page 288)
I
food
] and industrial
goods generally
for the
over
permanent
a
Liabilities
distribu-
o n
bring
increase
will also share the greater ex¬
Germany
■lli^li^lmll
ating respon| sibility for the
fproductio n
*,
the
eum products are
extremely-short for, the export program in the
in Germany and the disease and
American Zone, the American tax¬
unrest appropriations for this
pur¬ payer would be faced
indefinitely
pose have been nearly exhausted.
with paying for food
imports or
It is hoped that Congress will recletting the Germans starve. 1
pgnize the vital need for the mod¬ :■
At present,
exports from the
erate food and gasoline
appropria¬ Combined Zones are
about $100,tions requested and
necessary to
000,000 annually. The major part
maintain
the present, minimum of
these exports is Ruhr coal; The
level of.the German
economy.,
greater exports in the future will
require¬
The, immediate money needs for
solution.
:
and
'
«5>-
German econ¬
■
import
pert Assets of the Ruhr-i-particu-.
iarly,- Ruhr- coal—without which
the American Zone could never
become • self-sufficient.
occupation cost. Xites intention of returning. German for¬
eign trade to normal commercial and banking channels.
can
used to repay the
omy, and so maintain the present
ration level. Gasoline and
petrol¬
liability by approximately $130,the first year. However,
we
to U. S.
products
capita
000,000
>
occupation be-
food
ments will
}4-. ..General Draper expects early unification pf alLfour zones, ending
present partition. Merger with British adding ,$130 million annually
J mOnt since the
per
This means
greater food imports for that zone.
Jf also means'that our half bf the
Director, Economic Division
Office of Military Government For
Germany
less'
food produetion.
By BRIGADIER GENERAL WILLIAM H. DRAPER, JR.*
:
and
Ger-
A^mnb*
stratiye^AgeiW
man
.
-
As
American
:
and
Wm.
H.
r$ubscripjtions have been received in
Dr*pW j*
.,this, advertisement appears
British super-r L
'
.vision and control. The German
.food and agriculture agency is set
up in Stuttgart, under Dr. Deitrich, former food commissioner
of the amount of the issue
excess
matter of record only.
as a
„
,
NEW ISSUE
~
*
:
-
,for the American Zone. Dr./Deitrich, before Hitler's time, had been
both Minister of Agriculture and
Minister of Finance for the GerReich. The German economic
man
"agency with responsibility for. in-*
~dustry, price control, and for in"temal and external trade,-has be¬
gun operating in Minden, in the
-British Zone. The success or fail-*
tire of this agency in producing
goods for use in Germany,
particularly,
in
producing
selling enough for export to
for imported food and other
sential imports in the next
years,, will largely determine
success
or
failure of the
and
and
pay
If
es¬
Vim
few
the
merger
,
-
A.
;
itself. It is- headed by Dr.* Rudolf
"Muller, who
formerly
was
"
ister
of
Economics
for
Min-
Greater
•OIHI.OOO Twenty-five Year 2%% Debentures
*'•'■-'•A-'-'
'v
'
k.$ <■ ^
3 *■
To be dated
•Hesse in the American Zone; Both
January 1, 1947
ro be due
January 1,1972
"
these
,
men
views
and
are
anti-Nazi in their
"
'
■-
-
have
accepted their
"heavy responsibilities for the com-
Price l00y2% and accrued interest
*
blned area in order to^uild a
^democratic Germany ffom;'.the
'ruins left by Hitler;i!. - V:':'*,
*
-
Acute; Shortage of Good$
:
iwiiii
and
J
The shortage of goods' irr GeiS
"many, today is so acute .that/thc
Z
'■I'll'
*5entireAipraduction^nd more-r-is
.•
;" $15,000,000 SerialDebentures
^needed
for home, consumption.
'Bud exports"meaix: bread,juidt
3 sponsible:, Qei^ansi-. fultf rpepgr
:*iize
:,To fee dated January 1,1947
Maturity
;that they, must tighten their
"beltsj. make
tremendous sacrifices
Navy, -Both ; the? -Potsdam
] Agreement and a .recent: - Allied
.Control Council Law; completely
.prohibit the manufacture iniGer-*
•many of ^rms^ammtmitioh,:^osr .air¬
craft" or armament of ; any kind*
The peace treaty* when it1 comes*
will .undoubtedly require; that this
'proMbi^ioci, be made ,per|ianervtn
'
,1950
interest Rate
1953
m%
1954
1.20
1.70
1.30
1955
1.80
1.40
1956
1.50
;
1951
1952
Maturity
.
I.85
1957
II.90
•
?
a
,
•
^
I;
;
Price 100%"and'accrued interest for all
maturities
rr\Thrs advertisement is under no circumstances
\
be construed
to
Aale,orasan offer to buy, or as "a solicitation of an offer to
is made
i^The
merger will join the greater
American food resources* both in¬
,
1.10%
1949^
'have. No part of- German produc¬
tion will go to' support an Army
:or
Interest Rate
1948
"themselves and create substantial
"exports ;frpnw their present .small
^production.
r
lr".
v
One «ai> advantage they will
Tdbe due $1,500,000 each
January I from 1948 to 1957* inclusive
buy,
as an
any
offeringof these Debentures for
of such DebentureS.The offering
only by the Prospectus, Copies qftheProspectuAmay be obtained from thd
undersigned.
digenous and imported,.. with .the
'greater-Coal, steel and ,industrial:
-
-resources
;
of the British Zone ip
*anattemptitomak#the*combined
3area < self-supportingThevBritish
and American
,;
:
i I
s
as
1:11
Governments have
•$
: :: selling agents
> C^Underwrifera"
•
{
defined in Securities Act of
1933)
]
-
"
'•
a
50-50 basis
ifottjie
zones
-
area; The
generally
■f
Germans ihhoth
recognize
o
\
'occupying
h
tto
^
•sstarvation is'rtdW beingpreyented
Thy the Xood. imports -of the. two
,
"*
'
t
^
»
Private
cleveland
""Statement byvGenetal;;Draper
ence,;
Washington, Jan. 10,1947.
o.
\
t
3-
11
*
*
vu.n'-sL
t—.rl
v
11
n
f''V
'
'V
New York 5, N. Y,
boston
of their peaceful
at War Department Press Confer¬
vi
\)
Street
m
support is temporary ahdthat traly
:<
Hotzler
&
Members New York Stock
Exchange
,V
W! ^-nt' L W
power?,. - but' that1 this
increased exports
If.
Salomon Bros.
Jm, shming. the - temporary deficit
I
Jariufeiry 15^19473
wires
t<k
philadelphia
new haven
chicago
il
hartford
i;
-
i
f
eV.5Lrt
-
n
^HE, CQMMERGIA^& FINANCIAL CHRONICLE
tation of
much factual data in -for Consumers
so
single brochure that makes this
,.a
outstanding contribution.
an
All
feel
interested
finance
in
/<
must
deep debt
of gratitude to
intelligent and diligent in¬
vestigators who
organized and
executed this study. Investors will
a
those
By JOHN DEAN
A Magnificent
Study Has Come Out of the West
realize
Trends in American Progress presented by the Investors Syn¬
dicate of Minneapolis was prepared to reveal economics in the
a..,
,
/United States. This has been done by a series of tables. Information
•useful to all concerned with finance has been collected and reprinted
in one volume. The period covered coincides with the development
of the Investors Syndicate.
;
'■
•
"1^
1894
Between
and
the
1914
world
enjoyed almost universal
tranquillity.
Then
came
rapid
communications,
that
whose
staff can present so careful and
fine a work must be of high order
in any field of endeavor, and in
their hands funds will be safe.
v
„
,,,
„
,,
•
BUILDING
tion of
was
man
evolve in
can
of
one
I,
.
Y
;■
,
, „
„
r-
.
I
/s
,
and; dividends for
investors.5
.
•Vv»,7
Strikes and; Shortages have re-,
tarded
production, but now there
is little likelihood of another wave
of
strikes.
:
Government
controls
Hess, Blizzard & Co. 1
Formed in
Philadelphia
PHILADELPHIA, PA.—Forma¬
new firm of Hess, Bliz¬
tion of the
building have been relaxed,
zard & Co., Incorporated, with of¬
supplies are more easily secured,
fices at 123 S. Broad Street, Phila-
over
moreover, increased railroad rates
will put the rails in a more favor¬
able position.
If Congress can
work
out
the
management-labor
difficulties
higher stock prices
may be expected.
;
Portfolio
holdings of several
series are listed. They make im¬
pressive reading for they are se¬
issued by the Broad
lected with wisdom and care. In¬
Corp., and covering
dustry preferences include auto¬
both Broad Street Investing Cor¬
mobile, building, machinery, oil,
poration and National Investors
railroads,
railroad
equipments,
Corporation, brings interesting in¬
"Items,"
Street
the
,
Sales
annihilating
followed by two
costly wars, and the introduction
of atomic power. This last inven¬ formation.
This
space.
company
any
Most Types of Investments
Are Above the 1937 Level;
v
Thursday, January 16, 1947
Farm values per acre,
of
cost
a
six-room
house
steel.
in
Aviation Shares Are Subject
Louis. ■
Commodity
Prices
planet may be de¬ St.
To Wide Fluctuations
stroyed, or by means of atomic en¬ (USBLSj Preferred stbeks* (Stand¬
The Distributors Group sponsor
ergy we may enter into realms of ard & Poor's) are all above the
Her]bert H. Blizzard
.ArleigH P. HessJ
of- Group Securities prepared a
hitherto
undreamed
of
comfort 1937 price level. Only the Dowfolder on Aviation Shares. Avia¬
and good living.
So as to find Jones Industrial -stock prices are
delphia, has been announced by
tion shares often are subject to
benefits in place of destruction, lower than the 1937 quotations.
Arleigh P. Hess, formerly a part¬
wide fluctuations, such a period
ner V of Boenning & Co.,' and by
prosperity instead of waste, lead-,
Basic economic factors as dis¬
ers
should
be 1 saturated
with closed by looking at the amount was 1946. Now these shares are the partners of Herbert H. Bliz¬
selling at about 40% of their highs, zard & Co. •
knowledge
and
understanding. of government debt, currency in
yet some have had good earnings.
Thus by knowing, can they evalu¬
The new firm has membership
circulation, demand deposits in The
Fupd expressed an opinion
ate and guide. Historical informa¬ Federal Reserve member banks,
on
the Philadelphia Stock Ex¬
tion is invaluable for appraising wholesale commodity prices, in¬ through its bulletin that a diver¬ change and will conduct a com¬
sified managed investment in avi¬
the future and through the survey dex of industrial production, in¬
plete trading and investment busi¬
of the Investors Syndicate this has come payments, cost of living, ation shares will prove profitable. ness.
The outstanding
been facilitated.
characteristic
agricultural price index, etc. give
Arleigh P. Hess is President and
of this industry is a rapid expan¬
Tables covering monetary his¬ the
impression
that
common
two
SHARES
OF
ways, oqr
,
.
Group Securities/inc.
A CLASS OF.
/SECURITIES.
a pros pectus o n re quest
from your investment
dealer or
Distributors Group, Incorporated
63 Wall Street, New York 5, N.
tory, the rise of financial institu¬ stocks are low. Still the investor
tions,
bond
offerings, failures, is in doubt. One manner by which
employment, wages, railway prog¬ to dispel uncertainty is to call the
ress, changes in agriculture, metal buyers attention to the fact that
output, housing and other. items all companies are riot in an ad¬
of consequence to those persons vantageous position at the same
interested in directing and under¬ period. To buy at the correct time
standing the present and the fu¬ is the most important factor for
ture are provided.
By compari¬ successful investing. The buyer
sons correlations
and evaluations who can own the shares of virile
Y,
of
TRUST
FUNDS
V
v
SECURITIES
\
V.
and
growing companies will find
exceeded
all
Herbert
ex¬
Some
companies
growth is more rapid than that
of others and leadership in the
industry is constantly shifting.
For this reason holdings must be
diversified,- thereby assuring the
investor a portion of that company
whose future prospects will be
brightest.
of
great importance. Largest re¬
gional gains were made in the
&
South
1930
york 5, n. y.
and
years
ern
Southwest
and
while
1945,
show
Group.
»
"
\
-
It
estimated
is
To Be
those same
The
year
Atlantic states.
given to organiza¬
that gross
tions
from Whence
been
collected.
Of
material has
course
these
the New York
"Letter"., issued monthly by Hugh
W. Long & Co.
er
have
.
been
There
were
few¬
strikes during December than
at any time since the end of the
examined
Hendee,
beth K.
Associated
s
|;
Woodward V.-P. of
Barret, Fitch & Go.
Mr.
their list of holdings.
Slock Fund
Prospectus upon request
OF INVESTING COMPANIES
Lord, Abbett & Co.
INCORPORATED
New York
—•
Chicago
—
Los Angeles
»nco«?orat£o
WAIL STREET. NEW YORK
5. N Y.
ID'- ANOflt
SHARES OF CAPITAL STOCK OF
Richard
L.
Wood¬
Chicago
Woodward
became
associ¬
ated with Kauffman-Smith-Emert
$5 Non-Cum. Pfd.
Pneumatic Tool Co., $3
1917 to 1919 he was in France with
were
& Santa Fe Ry.
Cv.
Pref.y Gillette Safety
10k
■*
Most
Union Common
of
Among the
Atchison, Topeka
additions
V
'
*
'
v
.
t;
-
& Co. in St. Louis in 1916.
the
Armed
war
From
Forces, and after the
ended he
with thd Amer¬
was
ican Red Cross in Europe.- He re¬
turned to Kauffman-Smith-Emert
&
Co, in 1919 and several years
opened a branch office in
Kansas City for that firm, which
later
impressive has been the
record of those investment trusts
HUGHW. LONG & CO.
J.
Joyce and William M. Hess.
association
■
Outperformed the Market!
48
firm
new
rev¬
•>
Investment Trusts Have /
Prospectus from your Investment Dealer or
the
First Mutual Trust of the ward with Barrett, Fitch & Ca,
National Securities Series have Inc., 1004 Baltimore Avenue, as
Vice-President in Charge of Sales.
added and subtracted to and from
others; but it is the wise
MDABBEIT GROUP
with
Arthur L. Batten, Thomas
are:
The
by war. We are
again learning how Cum.
choice, to be successful, and' that
is";by
the ^fcrireful1 selection and presen¬ producing more and betteF goods
might
figures.
branches of the industry.
of 1947 brings hopes
says
Vice-Presi¬
Blizzard
Daniel J. Taylor and
Ralph E.
Vice-Presidents;
Eliza¬
Scott, Secretary, and Hen¬
ry B. Gurney, Jr., Assistant Sec¬
retary-Treasurer.
are:
KANSAS CITY, MO.—An¬
*5 In Aviation Shares one finds a
diversified ' list covering all nouncement has been made of the
Truly Prosperous
decline in the North¬ of prosperity
a
and Middle
Full credit is
prewar
What We Mtul Do
between
H.
dent and Treasurer. Other officers
.
*
by the compilers
considered
lem
CORPORATION
120 broadway, new
can
which has
pectations.
the
need
for
timing lessened. enues of air transport companies
♦'"•'v-/.
Companies of promise have been should, within the next few years,
Of special interest is the ex¬
chosen by the National Investors reach seven to eight times their
amination of the housing prob¬
Prospectus upon request from
investment dealer, or from
RESEARCH
other much
with the
be learned.
/ your
NATIONAL
one
sion
later
largely in high
grade bonds and preferred stocks,
is the message from Arthur Wiesenberger & Co.
tional
whose holdings are
became
the Boatmen's Na¬
Company,
Division
of
the
the
Investment
Boatmen's
tional Bank of St. Louis.
Na¬
He
con¬
tinued in the capacity of Assist¬
Conservatively balanced Funds ant Secretary and Resident Man¬
achieved great success in 1946 in ager of the Boatmen's National
spite of a general decline in stock- Company until 1933 when the
riaarket prices, their shares shrank passage of the Glass-Stegall Bill
only slightly. Mr. Wiesenberger required National Banks to give
thinks "the investment companies up their investment affiliates. At
concerned with that time he became associated
justifiably proud." with F. S. Moseley & Co. as man¬
A glance at the fall in market val¬ ager of their Kansas City office
and has remained in that capacity
ue, of many of the individual' is¬
sues compared with the general until the present time.
performance of the Funds sug¬
gests, tha.t few persons do as well
as the ^market averages.
•
and
one
every
them
can
be
Wm, C.
Redemption of shares in the
last part of the year were less
than in the first, this is proof that
holders of
such shares have not
much uneasiness as
have those who invest on their
evidenced
own
as
judgment.
Roney & Co. fo
Admit New Partners
DETROIT, MICH.—Wm. C. Ro¬
& Co., Buhl Building, mem¬
bers of the New York arid De¬
troit Stock Exchanges, will admit
Richard W. Hurdley and Warren T.
ney
Olson to general partnership and
Hildegard H. John to limited part¬
"Selections" show a chart of the nership on Jan. 23. As of the same
course
of
"Selected
American date, W. A. P. John will retire
A Seven Year Chart Worth Seeing
Shares, Inc.," of Chicago, and the from the firm.
the past
Mr, Hurdley
Dow-Jones averages for
and
Mr.'
Olson
The Selected Invest¬ have been with the firm for some
Company's value has been years. In the past, Mr. Olson con¬
consistently higher than that of ducted his own investment busi¬
seven years.
ment
Prospectus
Jrom your local investment dealer or
your
The
Keystone Company /v
of Boston
>0 Congress Street,
Boston 9, Mms.
may
be obtained froni
local' investment dealer, or
■
THE
PARKER
CORPORATION
ONE COURT STREET. BOSTON 8, MASS.
the Dow-Jones averages.
fThe
article
views
expressed
do not necessarily
y
in
this
at any
ness
in Detroit.
*
L. B. cPAviffdor
Proprietor
Leslie B.
d'Avigdor is now sole
Chronicle.
They are presented ns proprietor of d'Avigdor1 Co: 63
Wall Street, New-York
those of the author only.]
•
time- coincide
with', thoi'e
of the
City.*
THECOMMERCIAL&FINANCIALCHRONICLE
Williamson Pell Now Chairman of Board and
Dire Economic Predictions Should
;
Benjamin Strong President U. S. Trust Co,
States Trust Company of New York announced
yesterday
that Williamson Pell, President since
1938, has been elected Chairman
L,
In urging optimism, economist
emphasizes "worldwide"demand for
goods and services, improved management-labor relations, stimulation to world trade from International Fund and Bank, and aban¬
r.i
?°aId' ,anl h?s™bee£ succeeded
Election
donment of international isolationism.
O.U
■
•
>.»:
V-
-
V,
,,
,,
/V'V
"
are
VV'
'
^
Y'r ''y
justified in viewing the
,economic future with considerable optimism, and in disregarding, or
ignoring ;
'#!■; -oV-v :
5. - •:
.even
Our National Debt After
Wars—Committee
on
.
the
dire
pre-!!
•
would-be
-
mists
econ o
and
profes¬
sional
fore
serious
nomic
ternational
eco¬
^Economics
>
at
New
and
Dr. Max Winkler
York
Bernard, Winkler & Co., said be¬
a
dinner
nois
Securities Dealers
tion here tonight.
.
<
Associa¬
v :.
,
factors which should be taken into
Recount by the public in apprais¬
ing the domestic and international
;
'
1. The
.
vast
resulting
directly, has created
an
un-
precedentedly marked demand
for goods and services.
2. Funds available
-
;
.
and f,'
■;
-
tional
■
as
National
terian
KANSAS
Financial
CITY,
MO.—Eduard
Otto "has ' become
associated
With B. C. Christopher & ' CoM
Board pf Trade Building.
Mr.
.
was
Jack
unanimous approval by
the United Nations of a his¬
calling for the
outlawing of the atomic bomb
and general reduction of arm¬
action,
ment
Corp.
•
well-being
sible
even
or
shared)
■, -
longer
are no
,
Benjamin Strong
feasible, unless
by * the world
-'*. whole.fr
as
a
-.' ft.':
•;;
of
Manhattan
the
vast
absorbed
sums,
by
structive
and
Richard Boonisar Opens
war,
employ¬
hitherto
for con¬
revenue
pro¬
relief
from
the burden
of debt and taxation.
The desire of both
manage¬
ment and labor to settle dis-
putes
,
without
strikes and
duction on
well
resorting
to
to
maintain pro¬
a
high level, as
their realization that
as
\ disputes would havp to,be re¬
solved through collective bar¬
gaining with a minimum; of
BoverOmental interference,
should be viewed optimistic¬
:
ally.
"v.
,
'-r.
?j>z\Wi
Improving East-West Relations
change Place, New; York City, to
a general
brokerage busi¬
transact
ness
in investment securities.
Toppell
was
6. Elimination of much of
friction between the so-called
Western
bloc, and the socalled
well
Eastern
for
the
bloc,
augurs
hurst & Co., Inc.
V
(Special" to
Ths -Financial
Fire
Registration Revoked
,
Insurance
&
Company.
;
Foundation
of New York, Inc.; and a jneihber
Chronicle! ?:
of the Chamber of
Commerce Of
failure to file financial statements
for the years T943 Uy 1945 inclu¬
.
the State of New York.
Mr.
Strong,
such
Itanhattan
Opens L. A. Branch;
With Harris, Upham & Co.
(Special to The
New Y.-Ps. Join
Knickerbocker Shares,
Inc. has
with
Walter
F.
Pettit
as
Financial
Chronicle)
sive.
elected
attended
Company):
He
was
trustee of U. S. Trust in
a
dent in 1938.
The
the
staff of Harris,
Upham &
Company, 912 Baltimore Avenue.
is
new
U.
revocation / is
;
effective
: /.
-
,
Sylvan Perry Spies, doing busi¬
ness as Sylvan
Perry Co. of New
York,
,hig
K
was
permitted to withdraw
registration
dealer, He
was
as
also
-
broker-., and
charged with
failing to -file financial statements
years"1943 to 1945 inclu¬
sive. He was ^permitted to with^
draw his registration because he
for the
had not been engaged as a broker
and dealer for almost three years.
i
Dunai & Co. in Clifton
CLIFTON,
is engaging
in | the
-
investment
business from offices at 55 Nelson
Street. Partners are John Dunai
and Bernice Dunai. Richard Desmond and Raymond T. Levins,
firm,v which
District
Morris Mather, Jr., formerly of
This advertisement is not, and is under
Shares in charge of the
office at J41 West Jackson Boule-
Y:
such
no
circumstances to be construed
as, an
offering of the
solicitation of an offer to buy any of
securities,; The offering is made only by Ihe Prospectus.
following securities for sale
or as a
:
vanjl, Chicago.
Robert J. Sullivan of the firm's
New
York
office, 20
also been
Vice-President.
Place,
133,000 Shares
Exchange
elected a
has
Robert
M.
Goodwin,
;
»
"
'Common Stock
Kal'l City Bank of N. Y.
.
,
CafiadiafL c4dmkaL 6ti(pMdhn>,JfyL
Robt. Goodwin With
($1.00 Par Value)
formerly
associated with the Chicago and
New York offices of Kaiser &
Co.,
has' joined the staff of the Munici¬
Price $3.00 per share!
peace treaties for the defeated
satellites
conclusion of
:•
for
the
r
r
,
of
--
reciprocal
ments
which
"ineffective
as
r:
>• are
may
be obtained from such of the undersigned only
as
registered dealers in securities in this State.
Hulchiis C«. i, CGO
(Special
to
The
just and sat¬
-"Japan."-"
for
r,
and
a
Financial
r
f
"At
negotiations
—
trade
were
a
-
arrangerendered
result of Ger-
Dempsey & Company
Chronicle)
CHICAGO,
ILL. —
isfactory; peace with Germany,
Harrison,
Austria, and, eventually, Edward J. George A.
7. Resumption
Copies of the Prospectus
Join Staff of Mitchell
Arthur
C.
Robinson,
Kelly, and Arthur J.
Weinert
with
231
Mitchell,
South
were
in
have
La
become
associated
Hutchins
Salle
&VCo.?,
Street.-
All
Ames, Emerich & Co., Inc.
Hirsch & Co.
Doyle, O'Connor & Co., Inc.
First Securities
McAlister, Smith & Pate, Inc.
Irving J. Rice & Company
formerly of Robinson & Co.,
which
Mr,
Harrison yand
Robinsonvwe;re .pai^tners,
Mr.
January 14, 1947
•
Company of Chicago
'
was
formerly located in Passaic, with¬
drew from partnership.
\
Manager.
Morris Mather & Co., Chicago, is
now
Vice-President of Knicker¬
|
nf J.—Dunai & CO.
partners in the
S. Trust President
director of the Atlantic Safe
a
The
January 20.
who
1937 and became First Vice-Presi¬
KANSAS CITY, MO,—John F.
Baumgartner has been added to
f
The registration as broker and
dealer of Charles Fletcher
Baxter,
signing of the
^
Axis
Mr.
formerly with Luck-
pal Bond Department of The Na¬
the tional City Bank of New York.
•
r
Jack Toppell has formed. Top¬
pell & Co., with offices at 40 Ex¬
James
Own Inv. Business
ducing projects, thereby af¬
fording the nations of the bocker
world
I
doing business as Charles F. Bax¬
He; ter &
Associates of Chicago,; was
^also-is a r governor: of the Society
revoked' by the Securities and
of
the
New 'York
Hospital, a
Exchange Commission for, alleged
trustee of the
Marine
pos¬
highly constructive opened a branch office at 458
if translated into South Spring Street, Los Angeles,
permit
of
Toppell Opens
Own Investment Firm
Williamson Pell
•
4. The
aments is
and
will,
of the Presby¬
Church, Metropolitan Opera
and the Chamber of Commerce of
the State of New York.
Knickerbocker Shares
toric resolution
director of Board of
the Academy of Political Science
F.
.
•
a
Missions
Presbyterian Hospital in the City
of New
York) and Union Theolog¬
ical Seminary, and a member of
Chronicle)
complexity or gravity as curities -business from' offices at Princeton until
entering the U. S.
:
acquired, are to be incapable of speedy and aatr 30 "Federal Btreet. In the past he Army,to serve as First Lieutenant
larger than ever before.
isfactory solution, if the nations was with BrowniBros* Harriman in the Motor
Transport. Corps.
3. Pue to the great and
-^Y- .V- •:
.perhaps of the world are willing to show & Co.
A.E.F.; in ^1917?rl9, becomes the
irreparable harm to the pro¬ others .the same good toill which
seventh President of U. S. Trust
ductive * and
manufacturing they expect from others towards
since its incorporation April 12,
Edward D, Jones Adds
capacity of countries (notably themselves. Thus, there will really
1853. A native of Englewood, N. J.,
be: GloriaDeo:'iw'.ExceUis: et To Staff 'rX
Germany, Japan and -Italy),
he. became-associated .with the
the source of supply of
(Special to The Financial Chronicle)
goods Pax f. in Terra '< Hominbus : Bonae
company
as
Vice-President
in
and services is very much re¬ Voluntatis—Glory to God in the
ST. LOUIS,
MO.—Edward D. 1933, after serving with the: Na¬
stricted, suggesting that, for Highest, and on Earth Peace To¬ Jones &
Company, members of the tional Bank of Commerce in New
the time being, and
New York and St. Louis Stock York City, the banking house of
perhaps ward Men of Good Will." ;: /
for a number of years to
come,
Exchanges,. 390 -North Fourth J. Henry Schroder & Co. in Lon¬
the United States, will have
Street, haye - added Joseph Ln don#- ■ International,: ?Acceptance
to supply the major
portion of
Lederer to their staff.
Bank, Inc.. and the Bank of the
such goods and services.
it
.
Seaman's Bank for Savings.
He also is
Association, New York University,
Development,
Interna- await to be solved," Dr. Winkler
BOSTON, MAS S. — Richard
rMohetary • Fund)', with concluded.; "However, they are not Boonisar is engaging in the se¬
-
•
and
Adds Three to Staff
ob-
which much needed goods and
services may be
;
Deposit Company, Great Northern
Paper Company, Home Life In¬
surance v
Company, Royal-Liver¬
pool group of insurance companies,
University and New York Law
School, joined the trust company
as Assistant
Monetary Fund should offer a
Secretary in 1912. He
became Vice-President in 1920, a
.real opportunity for interna¬
trustee in 1925 and served as First
tional monetary
collaboration,
The New York Hanseatic
Corp., Vice-President from 1927 until he
thus putting an end to cur¬
120 Broadway, -New York City,
was elected: President in 1938.
rency dislocation r and paving
the way for expansion of in- announces that .George H. Arm¬
He is a director of the Atlantic
ternational commerce and its strong and William P. Neacy, for¬ Mutual Insurance
Co., Commercial
merly with Harriman, Ripley &
maintenance at a high level.
Union group bf insurance com¬
10. Abandonment of the old pol- CO., and George Noakes, Jr., are
panies,
Great
Northern
Paper
now associated with the
I icy pf isolation and
corpora¬
realization
Company,
Greenwich
Savings
tion's Government Bond Dept.
f that prosperity and economic
Bank
and
Export-Import Bank, Interna- I ■!> VTo be sure,, there are Still com¬
tional Bank for Reconstruction plex." and grave problems which
'
,
well
as
tainable through a number of
financial institutions (such as
z
•.
Goshen,
Y., and graduate of Princeton
N.
Christopher Co.
Special to The
Otto
«
Mr.
.
damage
.from the war, directly and in¬
-
f
large
.
BrirWinklet bitod th^lfdllowing
outlook:
a
B. C.
N. Y. Hanseatic
meeting of the Illi¬
meeting
and
Board had been vacant since 1942.<®»Mr. Pell, a native of
formerly representative
i:.) world reconstruction;. which iii in Kansas
City for E. H. Rollins
turn should benefit both the & Sons, Inc., with which he was
recipient of the loan as well associated-"for mariy years. - •" :
as the lender.
; ? J, ^
9. The expected successful func¬
tioning of the International
partner in
fore
on
bonds by the Bank, will aid in
City College
Pell
Eduard Otto Is With
com¬
; scale. is; to - be regarded with
V much favor; since the funds
raised
throughthe sale of
/
of
will
Bank
activities
mence
t-
} s e
Professor
of
The
8.
backs," .Dr.
Max
Winkler,
the
upon
country's economy.
expectation that the In-
-
and fi¬
nancial
the
Mr.
were
■favorable -t effect
pasters; about
•
■
-
during
which
and
pseudo and
Great
iPublic Debt
Thirties Policy# 26 Liberty Street, New
York City, paper — 250 (lower
completely
invalidated by the war, should rates in quantity)
lead to a healthy expansion in
foreign trade and the resultant
"policies
dictions by
of
organization
CHICAGO, Jan, 15—"Americans'
as President by Benjamin
:
\
; ^
;
Strong took place at the annual
of the Board. J The post of Chairman of
the
Strong, formerly First Vice-President.
White & Company
i Sidlo,Simons, Roberts & Co.
286
THE COMMERCIAL & FINANCIAL CHRONICLE
Urges Careful Approach
To Freeing World Trade
Canadian Securities
•
By WILLIAM J. McKAY
The
trade
Thursday, January 16, 1947,
Progress, bnt No Illusion
"All's Well" for Peace
restoration -of freer. world
high" level must be ap¬
{Continued from page 273)
has set the; seal on proached <4with care," Sydney G,
Canada's adult independence. It is somewhat anomalous therefore Dobson, President of the. Royal to.the world." So far as my little zeals.; Our "reply ,.to the world*
is a challenge to match us in good
that the Dominion, in spite of its incomparable financial
situation, Bank ; of - Canada,
declared "in part in this symposium is con¬
is tackling
*
timidly the question of the jettisoning of wartime finan-; Montreal-on Jan; 9. "Itis aU yeiy cerned, this is too large an order works.. '
Fur¬
«ial controls. :;
well to talk about the huge vol¬ to be filled in 30 minutes.
Mr. Chairman, these American
Whereas Britain with, its tremendous load of foreign indebted- ume of business that would result ther, I must make it plain that I attitudes will persist because they
am, not in a position to
*iess steadily and
"reply for stem from, reason and reality,
if all tariff barriers were knocked
boldly pursues^the United
States" because the
•a policy of
currency derestriction, the removal of the
and we are a practical people.
registration down," Mr. Dobson told the bank's
Constitutions confides. that pre¬ We should remindCanada with an almost invulner- privilege and ,the revaluation of annual;theeting,;''•but remdval^bf!
ourselves, as
rogative.; exclusively to the Pres¬ well as our neighbors, from time
.able international financial situa¬ the dollar would solve the
prob¬ tariffs on -some goods- would ut-'
ident/
The Senate merely "ad¬
tion does nothing to-improve the i lem. Such has not
to time,; of certain facts in this
proved to be terly ruin certain industries which'
vises and consents."; Sometimes it
convertibility
of
the
Canadian the case. The former step in fact are important t to our economy.!
connection lest we suffer :in stead¬
doesn't even do, that.
dollar in the hands of the foreign has removed a
The, matter- of
fastness what we lose in recolleo
reducing;*tariffs
stabilizing element
bolder.
from the market for free Canadian must be gone at-in a business¬
Fortunately, the Secretary of tion. ;..;/;3.'/>;• /.V.;,//%■'
/ There
is no question that de- funds.
Trading i in Canadian- in¬ like way, keeping in mind the State Sis here to speak for- the //Prior to December,/1941, we
ternal bonds has as a consequence necessities of countries, particu¬ President. But, unfortunately,, he were conscientiously divided •,
«pite the bad timing of the re¬
almost
valuation of the Canadian dollar, been
entirely
divorced larly small-population countries, is shortly leaving the public serv¬ along lines of deep conviction, re¬
the free i rate which
by resignation.
I
the level of parity with the U. S.1 from
has to maintain certain. industries on ice
say
this garding our proper. role
in A
with deep regret.
an economic basis." r The volume
dollar can be easily defended. The weakened accordingly.
Secretary world-at-war just • as we were
t
r
■
«•
n
The
.
V
-
i.v"
-y- vv-
-,i'V
v
on a
establishment of Canadian citizenship
>
-
,
,
greatest obstacle in the path of a
■stable Canadian dollar
the in¬
was
convertibility of sterling. This
sition is in the
course
of
po¬
correc¬
tion
following
Britain's
sterling defrosting policy.
'recent
Thus it would appear that Ca¬
nadian interests would have been
better
served
revaluation
at
the
the
of
time
dollar
simultaneous
of
the
by the
the ref
lifting of
affecting security and
currency * transactions.' As it is
strictions
;
.
Why therefore does the Domin¬
of
Canada's
"lifebiood" exports,
depends largely upon
the state of international affairs,
and "while the world picture has
not been as bright as we hoped
for, there are evidences of im¬
provement."
'
%
he
added,
,
still
hesitate
,
=
to
.
,
Earl Parrish Pres. of
S/ F. Stock Exchange
*
/:; During the week the external
market
whs
stimulated by the
GOVERNMENT
PROVINCIAL
MUNICIPAL
CORPORATION
dition.
He
fended
has
relentlessly
American
ideals
welfare
of
his
He
with affection
were
world-at-peiace. )
v
Pearl Harbor ended that debate;
i
It brought a united country to fair
flung battle
lines where we
swiftly
mobilized
greatest
the
and fighting resources of all time// It
I salute •did more.
It released an evolu¬
and
respect; and I hail him
great American!:
profound
as
a
very
tion which drove most of
irresistible conclusion
peace
General Marshall, who succeeds
us
to the
that world
is indivisible.
•
We learned that the oceans are
brings to his task a stout no longer moats around our ram*
We learned that mass de¬
heart, a clear head and a rich parts.
experience.
He has always en¬ struction is a progressive science
joyed the total confidence of Con¬ which defies both time and space
flesh and
gress ahd of all his military and and/? reduces ; human
him,
civilian colleagues, at home and blood to cruel Impotence.
Then we contributed the
him Well In his
abroad. -' I wish
,
crown-*
ing projof ourselves. In the climax
tragedy we ourselves! de*
great responsibility.
i)f ;tn|s:
.....
..
As
The Bi-partisan Policy
vised
junior partner, I have
worked with Secretary Byrnes on
what is called a "bi-partisan foreign policy" in the United Nations
and in planning European peace.
It would be more significant to
say
we
have sought a united
American foreign policy so that,
despite some inevitable dissidence
at v home, America could enjoy
a
abroad the enhanced
a
authority of
united front.
I
substantially
,
reelected "to the- dare to believe that, despitd some
Board of Governors for a term of distressing domestic interludes, It
Co.
before
role in; a
>r x ' -K '■«
years
proper
our
country
to the peace of the world.
him
de¬
great contribution to
a
similiarly divided 20
of regarding
in crises
where they required defense.
has made
the
effi¬
Secretary
in the finest American tra¬
also
the
bomb—an: ap¬
atom
palling -tribute to Our illimitable
genius—an equal 1 y appalling
prophecy of civilization's suicide
unless world war three is stopped
it
before
starts.
This
produced
the inevitable conviction that the
jungle code of war must be re¬
pealed for keeps.
^
'.\ •. v/;.
;
•iW
■
iri'< 4
***y
UtWty
U« S. Participation in UN
Before the horrors of the con¬
flict had
reached their maxi¬
even
mum/we brought our major allies
together at Dumbarton Oaks td
chart the most essential victory of
V. C. Walston of Wal- has borne rich fruits.
New
In any event, partisan politics, all—a victory over war itself.
Ob
ston, Hoffman & ' Goodwin/was
the overdue measure to place; Ca¬
elected to the Board for - a one; for most of us, stopped at the yes, we had said these same things
nadian securities on the Savings
water'-s. edge.
I hope they stay once before and they had turned
year term.'
'
*"
1
Banks'legal list. Scarcity of sup¬ v Elected to the nomihatih&coni" "stopped"—for the sake of Amer^, to ashes on our lips. • But there is
ply, .however, militated against a mittee to serve for the- current ic^l^regmdiess of what barty is no comparison in the provocation
turnover of any note. Attracted
in power.
/
This does not mean which was our immediate spur.
year were: Douglas G. Atkinson,
by the cheapness of the offerings Dean Witter & Co., Chairman; that we, cannot have ' earnest,
/From Dumbarton Oaks we went
a decided buying
movement de¬ Howard J. Greene, Sutro & Co.; honest, even vehement domestic to San Francisco and at the sym¬
veloped
in
Canadian
internal L. M. Kaiser, Kaiser & Co.; Em- differences of opinion on foreign bolic Golden
Gate, the charter of
bonds, which was sufficient to ab¬ mett A. Larkin, Hooker & Fay; policy.
It is no curb on free the United Nations was unani¬
sorb fairly heavy liquidation. At
opinion or free speech.
and George A. Heintz, F. B. Keymously
approved.
From
San
their current level internal Do¬
ston Co. ;//////?•. .///
But " it does
mean
that they Francisco we went to Washington
minions which offer a 3% return
and the Senate spectacularly rati¬
should
not
root themselves in
at a discount compare very favor¬
partisanship.
We
should
ever fied the charter with but two dis¬
ably with comparable domestic
strive to hammer out a permanent senting votes.
We accepted the
investments.
American foreign policy, in basic •jurisdiction of the International
essentials, which Serves all Amer¬ Court of Justice.
ica and deserves the approval of
From Washington we went to
w. C. Langley & Co., 115 Broad¬ all American-minded
parties at all London and organized the first
way, New York City, members of times.
"towm meeting of the world.'*
the New York Stock Exchange,
But let me get back to that From London we came back to
will adiiiit Linwood C. Ogg to
"reply to the world."
I assume New York where, in response to
Frank T. McCormick, manager
partnership on J an. 23. Mr. Ogg is "the world" chiefly wants to know Congressional invitation/ the
of the trading department of the
manager of the statistical depart¬
whether America will persist in United Nations/^launched: its gi¬
New York office of Dean Witter
ment for the firm.
its
attitudes
toward
collective gantic adventure on a site in the
& Co.,
14 Wall Street, will be
peace and security.
I cannot an¬ United States, which thus gives
admitted to partnership
in the
swer for others.
I will answer for us the permanent peace capital of
With Carl K. Ross & Co.
firm on Feb. 1.
Dean Witter &
news
CANADIAN BONDS
able,
an
;
State
,
this step should not be indefi¬
James Muir, General Manager,
take, the
iplunge and remove the. currently nitely/ postponed. * Faith in (Ca¬ reported to stockholders that the
nadian /credit, in; general;an& in bank's assets on Nov. 30 had es¬
unnecessary
restrictions / which
the Canadian dollar in particular
tablished the sixth consecutive an¬
hamper the Canadian exchange
are undermined as a direct result
position?
There is one situation
nual record high/ amounting • to
of the lack of freedom of opera¬
which was previously largely ig¬
tion. If the holders of Canadian $2,131,974,316 for/an increase of
nored by the Canadian authorif
securities had complete liberty; of $124,427,337 from a year earlier,
ties and which has since loomed
action there would be less likelir
Deposits rose $74,346,877 to $1,as a major problem.
This is the
hood of embarrassing liquidation,
holding in this country of i Ca¬
963,103,951.
Net profits for the
and confidence in the pew level
nadian
internal bonds.
At one
year were $4,851,386 a; gain "of
of the -Canadian dollar would
be,
stage when the Canadian foreign
rapidly established. Much could $903,244 bver the preceding' 12
•exchange position was less strong
be accomplished by the merging' months.
the movement of U. S. funds into
.YYY'Y '
^.
of the, free and official markets
—■ '''
:y^ 'i'
Canada was viewed with pardon¬
for. the Canadian dollar and ab¬
able complacency. It
subsequently sence of
any-impending important j
became a problem partly because
Canadian Government financing
the Dominion was
accumulating leaves the
way clear for the Do¬
an
embarrassingly large balance minion financial authorities
to'
«of U. S. dollars, and partly because
concentrate on a major operation
SAN FANCISCO, CALIF.—The
as fast as. Canadian international
of adjustment of the international; San Francisco Stock
Exchange an¬
indebtedness was reduced by re,position
in
Dominion
internal nounced that at the annual meet¬
■demptions and maturities it was
bonds. As we approach the dead-;
built up again
ing Earl T. Parrish of f. Earl tT.
by^ the uncontrol¬
lable process of foreign purchases lin^ for. the operation of the, Jh-; Parrish «?~Co/" was reelected as
ternafiorial Monetary Fund such" Chairman' of the Board. Frank
•of Dominion bonds.
a
development appears all the M/punn<5f Coons, Milton .& "Co.
It was erroneously believed that
more timely,
and Arthur N. Selby of Sutro &
ion
Byrnes has been
cient,
courageous
of the consideration by the
York State Legislature of
two
years.
•
W. G.
Langley & Go.
To Admit L. C. Ogg
•
CANADIAN
STdCk^
Dean Witter to Admit
,
MeGormick As Partner
A. E. AMES & CO.
INCORPORATED
TWO WALL STREET
NEW YORK 5, N. Y.
Co.
RECTOR 2-7231
NY-1-1045
and
are
changes
Francisco
and
other
tional exchanges.
TAYLOR, DEALE
•■i
.
CANADIAN DOLLAR OBLIGATIONS
'I
3-1874
'
*•
.
64 Wall Street, New York 5
WHitehall
Chronicle)
MAINE—Carl K.
Stock
Ex¬
Ross & Co., Inc., Bank of Com¬
leading na¬ merce Buildin g, has added Robert
L. Smith to their staff.
PORTLAND,
of the
& COMPANY
:
(Special to The Financial
members of the New York
San
Dominion of Canada
.•
Markets, in terms of United States funds, furnished
on
request.
myself.
...
Against
I
.//V:
s
Lnternational
Defense
Aggression
•
SECURITIES
Government
Provincial
Municipal
Wood, Gundy & Co.
;
A
,
-"
14 Wall
Corporate
"
Toronto
Montreal
Incorporated
J
\
.
Street, New York 5
Winnipeg
Vancouver
; London, England
record cannot be misread
,
at home
abroad.
or
enlightened self-interest, will do
everything within its power to
sustain
organized
international
defense against aggression; to pro¬
mote democracy and human rights
and fundamental freedoms; and,
through international cooperation,
to seek peace with justice -im a
free .world of free men;
..;
/
We plot no conquests.- We shall
nor appease the
conquests
of
others.
We
ask
nothing for ourselves except re¬
ciprocal fair-play.
The extent to
which it develops will determine
our final course/; We are not in¬
heart
and
others
to
match
our
the
un-
the letter
and the spirit of these obligations.
In
my
view, this will be true
no
matter what administration sits in
Washington;
true
to'
it
and
whatever
faithful
to
will remain
.extent : the
themselves/
United/ /Nations
are
pledge.
That/: in general, /Mr/- Chairman,
would be my over-all "reply to
our
common
the world."
UN Not
a
:
ment.
>
Perfect Instrument
But I make "the
illusions
that
automatic
will :* rally
united,
We shall be faithful to
shall
price. We
standards which
em¬
as
partisan American foreign policy.
The United
to
of
core
terested in unity at any
aspire
We have
braced the United Nations
believe the United States, in
neither condone
I CANADIAN
This
'
]
the world.
;
v;./
Backs
"reply" with
now
"all's
nor
a
perfect
no
well.'*
Nations is neither
an
instru¬
Like any other human in-
-Volume 165
Number 4560
'stitution, it will
It
must
It
live
from
grow
must
make
and
It
*
hereafter
must
stitute.
to
strength.
the
ever-expanding
earn
confidence
mistakes,
learn.
strength
THE COMMERCIAL & FINANCIAL
and
everywhere.
'
must
deserve
not
to
.
is
our
"dream"
nightmare.
a
alone.
We
not
our-
fit
We shall
shall
definitely beset
We
shall
Weakness—because
of
/use
the
respect
of
to
the
disputes,
system to
the' excessive
veto, particularly
pacific
can reduce the
a
powers
new
But I hope nil the
great
will
voluntarily join in
procedural interpretation
intend to keep
we
American
our
a
of
which
other
Mr.
/
lems
with
with
a
We
titans
our
mutual prob¬
I conclude
the world.
few swift overtones.
have finished, five -treaties
will
charter; to exempt all phases
pose
United Nations
validity
gional
of
Charter
arrangements
plan.
in
This
republic, rich in wisdom, equally-
re¬
rich in its' democratic
promise for*
offi¬
was
.
friend!/
until
historic
our
omorrow, and historically fixed
in the orbit of our good will. Sine®
Nations
specifically done
was
Chapter VIII
of
the
1911, when Dr. Sun Yat-sen gavo
Charter.
China
treaty which,
he
>
Act
provided for in
as
of
Chapultepec.
Under
organization, while at the same
advancing the development
ship
test. of. international
a
..
■
.
.
a
inspection: and
Jattercase, whiGh
control
makes certain that 'no in- I
again retreat:This' is hot trucuternational brigand shall hereafter leriCe^it / iST the power of brave
#
nf" 1 ? greatest break
Bhip—willdisappear.
control
is
faith with usfarid with the
I world!--The pricey is yaniply ?prot
tection against treachery!
• ,<V
,Stern fiscal
.
indispensable-^not
ury but prudence. "
-»
-
'
—
deadlines in our
ideals from which we shall never
pen- j
y1
What
aharnaked trhtn.^;
r ,-
!,
is
we
are
a
left New
;
we
well so soon.
so
curity Council has already
fully/tempered
fctions which,
It is my own view that our own
Far
^
a
commission
.
,...
Case in point.
inquiry to the
the latest
striking
Meanwhile, its
which
is
the
greatest of
approach to mutual
an
disarmament.
rr,u
.
,
.
ii
u
vL 1
Pf!16 imP°nderable the
f"ftlons,m,ay become, the
#
Persevere m
strengthening this
Available
one
agent
of
emancipation.
; And this: If,
one
aggressor
.
the
leaves
peace and economics
us
are
in-
Unfortunately, this area of ac^on j3 not;; so clear because the
i premises
in
themselves
clash of economic
a
But
ideologies.
shall not draw back from
'our essential
responsibilities. For
ma^e
am
Congress will
sure
will*
be
relief appropriaadministered under
and only
organized
day,
some
United
Na¬
tions, in order to be free of its
restraints, the rest of the world
has ready-made-at-hand the well-
stricken postwar
still
we
war
areas
casualties,
never
UNREA) which
ar)r^
and
even
are
though
again contribute 72% of
internltional
an
which
fund,
can
as
In
be controUed
#i-vr»ini+ori Kv r»+v»£>va
exploited by others
This is said .without
prejudice to
the great•. and humane /achieve¬
ments of UNRRA
despite is handi^
pupn
even
caps.
'
multilateral decision which
should always be made by all of
us jointly and not influenced or
dictated by us alone.
In some
aspects it can be said that we have
to
and
to
threaten
•
"s
reciprocal
-
:
'
\ ,
Prepared to Disarm ?•>:
fi/ spoke of disarmament.;
•
;v,;
one r
and
^
trade /
form
•
,
fying
the: American
and
British
zones—with arl invitation to. the
French and Russians to join Us at
their option.
This is a
the, United
operative
Nations
military
and
its
co-
resources prove
bilateral
as
well
and from
abroad of making
for, political
agreements
as
healthy world.
economic
purposes.
acute
••Xv-4.;,
Hdpe in United Nations
;
face a
new^year, in .world % affairs with
many gnawing problems still un¬
been
proceeding jointly; But "
think It is past time to hold the
Pan American conference which
we
.
solved
all
around
this
turbulent
globe.
I have touched only a few
significance hv
respect to the topic of the evening.
Peace is more difficult tojvin than
which have special
;
w^s thenar,
■; '/r;^
On,the other hand, we have a
right to U cheer ourselves
with
own
but
vigorous
also
to
But
this
steadfast
standard
to
which
men
good will in every clime and
blessed way.
full part.
anti-
America will do her
hopeful
This advertisement is not, and is under no circumstances to be construed as,
;
offering o£ these securities for sale
an
.
1'-
.
to
-'.
buy
'
any
Meanwhile the
business
of
or as a solicitation of an offer
of such securities. The offering is made only by
the Offering Circular relating to such
!
;
re¬
newed; decentralized political
au¬
37,500 Shares
tonomy—looking toward federated
stateslwhich shall be the masters
not
the1 servants
of
a
in the American zone.
new
total
omits 4
against
no
•
Stern & Stern Textiles, Inc.
.
v
a
plan
peace—a
plan/ which
possible
precautions
recurrent
which: offers
iHitlerism,
some
Common Stock
.
yet
(Pa# Value $1
per
Share}
*
reward; other
fully strive toward democratic
-self-redemption.: The important
thing "for ■ the world to know is
that
we
intend to remain in
Price $8 Per Share
occu¬
pation until this job* is done.
It
is part of the war, if we are to
preserve our
I-
victory.
A Pan-American
,
/
Solidarity
C. E.
# Meanwhile,we face the intimate
necessity of refreshing
our
indis¬
pensable Pan-American solidarity.
This comes close to home. It is
historically basic in American for¬
61 Broadway
Jaiiuaiy 16, 1947,
un¬
der every flag can repair; and it
has already sped us on this God-
self-development
our
far to go before
pledge is a reliable < reality.'
the United Nations has raised
The world has
this
pattern.
,
/Vmanent and effective renunciaforeign state, monopolies
tions; or (2) in whatever degree a
growing habit
when
of
^ice bl thau:- eternal Jdegradatroh^/ to^ new
agreements,^ in German* states when they faith¬
or! another; to release
expand ^mutual
trade-~an
No : even; greater need •
for, us than for
•M"other peace factor is Of
;such/yttair any; other j country.; because ' bur
^
ity; and hone could better; typify
ivastly expanded natibhal
economy
America's attitude toward
peace and employment
require it.':
and the world.
We are prepared i; Whether
this can continue on
to disarm
.(1) to Whatever extent its present multilateral -basis
vwill
other
powers * are
dependably depend somewhat/upon the type
ready to make comparable, per- ofcompetition we confront from
-V
.
States and
chaos
..
•
.
aSt
^machinery tfoi^,another,
Again, reasonable rehabilitation
11 But 4:he pressing need is
immediate, grand alliahce ( credits are unavoidable; if
dempT for!:
chance'such condign disaster.
a
not
and disaster.
We have partially
met this worsening crisis by uni¬
swiftly
"
suffered such economic. de¬
terioration.
ress
and
bverwhelniihgly: to ^atic; stabilities'^ are^; to/
confront the offender.:; Would-be stored^
before, it
International ' assassins^yif ever, -way of another ,is;;tpp:;lat<^ iBy
example, I believe
such there
be,/ will not ; lightly ,we shall / continue ithe
minute
My fellow citizens,
daily headlines scarcely remind us
we are
successfully liquidat¬
Berlin—makes encouraging. prog¬
geared
be ra
to the United
concern
a
that
situation
has
and
Rehabilitation Credits
Unavoidable
never
China's//destiny is
,
liberal
a
tion_to
well
we
German Situation
we
example, I
.
While still
recommending unity, it might well
encourage
those
who
have
so
heroically set their feet upon this
road;" and discourage those who
make the road precarious.
Our
marines,
having
finished - their
task, are coming home. But there
party, this
In Germany, retarded
by Rus¬ ing the greatest single postwar
sian and French refusals to ful¬ task
which fell to our primary
fill the Potsdam requirement that'
responsibility,'
arid
where
the
the four zones of German
occupa¬ young Philippine' Republic arises
tion should operate as
an eco¬ as a monument not only to/its
nomic unit;; the; German
mixed
are
every American
auspices in consultation
g00d"Wl11 can
with the United Nations-for the
men
aIj
..
things can be the beginth«featest worth
benediction
They are
t
/The
senarablv kin.
Assem-1
powerful
piovements for the common
good
—incomparably
another phase,
unxunun,
General
bly has already initiated
upon
economic factors of the peace are
0f vital interest to the world—and
,
of
is
Now, Mr. Chairman, I briefly
| touch
might
shift its emphasis.
a
Now
j;
Eastern' policy
now
some
very real encouragements^
The greatest of these—and I end
peaceful world.
restore the warmth of New World
turn, after many weary Unity which reached an all-time as I began—is the luminous fact
|
months' of urging, to pe^ice
,that; 55 nations, are committed by;
plans high at San Francisco.
for Austria; and Germany. At
solemn covenants
to help
long
each
last ;We/^hall come to grips with
The Far East
other keep the peace, to substitute
the heart of the European prob¬
I devote a few parting sen¬ law for force, and to strive toward
lem. All occupying powers should tences
to the Far East, where Gen¬ the uplift and defense of human
recognize the
independence
of eral MacArthur is doing so mag¬ rights and justice and fundamen¬
Austria and withdraw their troops. nificent a
job in Tokyo that our tal freedoms.
tion in
so.
peace¬
many critical situin the absence of
its mediation, invited
serious implications. The recent
dispatch of
Greek border
allowed to do
are
Its Se¬
great
Christmas, will weld together
strong and competent China. *
a
•
has done
coalition of non-Communist par¬
We can hope that this Nan¬
king charter, with its first
UN. Has Accomplished
were < al"
we
promised in~ 1945,4and there
But/ Mr.Chairmanv we must selves. *- We ask everything}' for ! amicably resolved#
These
five to formally renew the
joint New
not be impatient,
it took five peaces I j submit,^ sir; ^at rnexfei; treaties are far from satisfactory World authority which is the
h^s there v been /a ; comparable in;; haany ^aspects. vrB^^ttjey/bear genius of? our
years to take the world
apart; It
New Worl^ unity.
exampleoft national goodwill; nor no 4remote' resemblance: ta the
would hot be
There is too much evidence tha
surprising if it took
one g0
at least that long to
thrillingly dramatizing the greater dissatisfactions which we we are
put it to- }
drifting apart—and that a
gether again;; The remarkable purpose of. a great people to live have prevented;; arid they are a communistic
upsurge is moving in
thing is that the United Nations land let live in a-peaceful earth, if great 'advance toward recoristruc- We face no greater need than to
>
gov¬
being reorganized with
>
When we left Paris' in Septem¬
ber the Council of
Foreign ; Mirii isters4 -was- i deadlocked1 on more
;/.
But- ii^ is affixed nrice% MP
KUt -tlls a l«ed price,; Mr.
Chairman, - and; the price .must ;be than 40 issues. When we
paid.;; We -ask^ nothing for'our¬ I York; in December*
they
ties to which
Constitution and the
national election promised befora
■
i
leader¬
next
,
^ Ser? J?1" s^es tinudus
the
determined
ties.
-
•
new
a
I
There
•
the
of
ernment is
•z
/:
.
Marshall—
Chiang Kai-shek, a Na¬
tional Assembly has just produced
inter■
General
impartially urging that it
produce unity , with a rival armed
party, the Chinese Communists.
would support and strengthen that
of
f
been
time
,
we
tinguished
itself,
would be consistent with the char¬
ter
of
world
organization • and
of the historic system
American cooperation,"
Government
Kai-shek,
That was on May 15, 1945. This
repeat, however,' that this; cannot battle allies was an achievement is Jati.
11, 1947, "In the near fu¬
happen either itt ambush or on a pHmarilyydue^to American insist¬ ture". has not
js another, hazard.
yet arrived.?* The
The
ence; -Here, again; is an
Unmis¬
>l
organization .is beset by fiscal ohe-way streetr ' "/• '
said * of the proposed
takable cue to our international Secretary
our American proposals
regardconference that "it would be an¬
dangers. In the enthusiastic eaging atdmid bombs- illustrate pay disposition ever; to recognize the other
erness with which it
important step. in carrying
expands its
p0int.
With an- investment yof rights of / little - states - as well as forward the
good; neighbor pol¬
big.;-:
c 1
.effortst
icy." If he was right—and I think
specialized agencies; each th^?u^ $3,000;0po,000 in this supremd-de^
With its
A Friendly but Firm
gtroyer of all tirne, and> WitK' a
own nncoordinated
he was—this long failure to hold
Policy
autonomy, it
Toward Russia
monopoly upon its -sinister secret
threatens
the conference has had the oppo¬
accumulating
annual for some years to
come, we offer
Here also is st cue tcr what seeiris site effect.
assessments which a
I am well aware of
majority of not
oriy to abandon our dominant to be our improved relations with the reasons for delay. T entirely
tSenI^r in, <5?s
may be advantage, but also to .y j pin :in the Soviet Union—as a
unable to fairly share.
sympathize with the anxiety to
result,
outlawing its destructive use by believe,? of our present
suc^
fugged pol¬ purge the Americas of their last
fv?nt, on
is concentrated either the, burden Anybody; any time, anywhere ori icy of firni but
a
few large
friendly candor vestige of Nazism.earth
which I hdpri has
states.or.the smaller states
But I think that, under half a
permanently es¬
drop
And what is our; price? / Just
tablished the American doctrine dozen solemn
Pan American trea¬
case, the sov- i
this^-an effective system of COii^ that there are
thises
good faitn.
new
of Chiang
have—through a
year's mission headed by our dis¬
ican republics to undertake in the
near future the
negotiation of a
blow,
-
her
tionalist
,.
pansion is best for all concerned.
dependably agree, if there be with, ex-enemy European states.
disciplines
which
to pacific
guarantee They passed, in review before a
^settlements fromwhat, against bad faith;::and /we will peace conference of 21 nations in
in .such
instances, intakes; of the
speed the day. when such a\ boon Paris. We are entitled to say that
this broad consultation of all our
Ji. stultifying checkmate. I shall deal war its deadliest;
the
he
the
vision,, she haa
Anything less would Thereupon the then
Secretary of been
struggling,
against
bitterr
be a; calamity not v
only for us State, Mr. Stettinius, as part of
odds, toward the light of a new
but, for, the; Western. World* But the
agreed plan, promised—
day.
While recognizing the Na¬
sane, healthy, mutual trade ex¬
To invite the other Amer¬
the outer rim of
to
eign policy; and nothing has hap¬ imperialistic
American liberalise
pened to lessen the importance of which defies
successful libel either
good neighborly contacts. at home or abroad.
But it is par¬
Quite the contrary. At San Fran¬
ticularly China to which I-dedi¬
cisco 20 Latin-American republics cate this
paragraph.
were
unwilling to proceed with
Here lies a vast and
these
enterprise.
Chairman, my time runs
out, though I have touched only
armament
287
industry and agri¬ cially tied into the United
those who may still think in terms
of force. But we will
joyfully match
the utmost limits of mutual dis-
mockery.
xls ™ch
early to talk
major/surgery on the char-
about
ler itself.
forced upon us.
body's mercy;
"
1
would
culture in sound, domestic
health,
and to protect our
system of free
We do not intend to be at
anynor do we intend to
emasculate
our
authority7with
whole
are
Certainly
own
out of all pretense of y
integrity,
We shall not ignore reality;
in
settlement
we'
p'S?$xvEnterprise J;/iy/S:Vyf j
take 4
words,
Too many "words"
at/Yaltaiarid
at Potsdam have been distorted
powers
invincible,
into
us
procedures to the necessi¬
our
•
great
force
Will Protect System of Free
■
are
could
voluntarily embrace. We shall
ties which
not
no v "sweetness
by hazards. For example, the neand " light''
for
granted
in ' a
cessity for unanimity among the
world where; there T is ' still too
five great powers is both
strength much "iron curtain."
We shall
sand weakness to its
arm.; Strength
not trust alone to; fickle;
^—because
these
when u n i t e a
habits
defensive tactics which
dearest dream,
shall not
disarm
These
reliable sub
a
trust te ther persuasion of our exr
ample. We tried that once before.
survive.
Meanwhile it
It is
we
selves into
fidelity of people
It
But
to offer
CHRONICLE
Unterberg & Co.
New York 6, N.
Y.
28$
THE COMMERCIAL & FINANCIAL CHRONICLE
Jacobs & Low Admit
Jacobs
&
country banks, and non-member banks,
partnership./ In
Feigus
was
& Brady.
61
the
rfOur
return
beneficial effect
a
on
Adcock
Financial
CITY,
is
&
Chronicle)
with
Company,
due
very small.
.
hon-member
vestors and
these institutions took
,
♦
and
Herrick,
.
'
/
<
,
.
traders, alike are watching trends closely, because funds
seeking investment are still substantial, which means that advantage
will no
doubt
be taken of price weakness to
acquire selected
1012
Inc.,
y\
Baltimore Avenue.
.
savings banks still seem to be out of the
long-term market, although funds appear to be going into certificates
short-term eligibles.
»
Despite, present uncertainties both in¬
>
MO.—George
now
//':
\
•
came
The 2% due Sept. 15, 1951/53 were taken on in fair amounts
with the Chicago banks/the largest
buyers, followed by the Reserve
City banks and non-member institutions.
.New York City member
banks and the country banks were sellers of this issue.
Purchases
of the 2V2%
as
.
KANSAS
Waddell
from circulation had
Insurance companies and
Waddell
The
15, 1967/72
in for good buying as
Z; the country banks made the largest commitments in this security, X
/ followed by the New York City member banks, Reserve City
institutions and non-member banks...
Chicago banks sold a few
: of these
bonds,...
V
a cautious attitude has developed toward the
dealers, traders' and investors took to the sidelines.
The longer eligibles, which have had the
largest advance recently,
gave the most ground, although the
intermediates, as well as the
restricted obligations, likewise moved
away from recent tops.
market,
Adcock With Herrick
A.
flow of currency
government securities,
/
to
also buyers, with the
.
S
(Special
on
Although the usual January investment demand along with the
;
partner in Prentice
a
Reporter
The 2^s due Sept.
,
By JOHN T. CHIPPENDALE, JR.
Mr.
past
were
Reserve City and Chicago Banks sellers. ..."
Broadway,
New York City, members of the
New York
Stock
Exchange, on
February 1 will admit Roland S.
Feigus and
Frank Feinberg
to
Low,
Thursday, January 16, 1947
issues.
With McCourtney,
.*•.
f
.
.
...
the
.
Reserve
1950/52
.
1956/58 in contrast to the 214%
Buyers
were
and
were
the New York City member banks and
with the heaviest /selling; being done by
were
institutions,
City
due 1956/59
country banks.
.
.
The 2%
.
due
Sept.
15,
sold by all of 'the banks, except those in Chicago, and
on a fair amount of this
security. . . .
PARTIAL EXEMPTS
Among
the partially exempt issues, the largest commitments
again made in the 2%% due March 15, 1955/60, with the Re¬
City and New York City member banks making the principal
purchases, followed by the country banks and non-member institu¬
were
WELL BOUGHT
^
.
,
.
serve
Breckenridge
(Special
The
to
The
Financial
bought
Chronicle)
1967/72.
ST. LOUIS, MO.—John Edward
Hayes, Jr. has become
Company, Boatmen's Bank Buildr
ST.
The
Financial
LOUIS,
Queen
has
Chronicle),
<.
MO. —Bert.
been
added
/
J.
to
The
21As
of
the
of
eligible
1956/59
and
taxable
the
2s were well
due Sept. 15,
21/£s
holdings
shift in
by the commercial banks con¬
out-of-town institutions sell the shorts to
under10 years.
the
tions. ;
/ The 2% % due Sept. 15; 1956/59 were next in line, with
the New York City and Reserve City banks the important
buyers.
The longest partially
exempt, the
.
.
.
.
was
2%% due Dec. 15, 1960/65,
bought/ mainly by the Chicago banks/ with small purchases by
////New York City
the country banks and Reserve City institutions.
banks sold a minor amount of this issue.
.
.
.
.
The bulk of the purchases are being made in ;the 2s, 2 Us or
\2J4s due 1952/54, which means less than a six-year maturity; k.
/The 2J4s of 1956/59, which has been one of the favored issues,
along with the 2?4s of 1956/58, still keeps ihe maturity range
'•
With Slayton & Company
to
...
sound......
;: v-;;
(Special
the
were
tinues, as the smaller
lengthen maturities, which will aid them in maintaining incbm£,
;
Thi$ pattern of moving into; the more distant maturities of govern¬
ments by the smaller deposit banks, is not quite as bad as it
may
affiliated
with McCourtney, Breckenridge &
ing,
longer ; maturities
as
.
v
The 294% due June 15, 1958/63 were taken on by Reserve
City banks; country banks, . Chicago banks, and non-member in-;
x/stitutians/;New York/ City institutions; showed iio change 1m
n
.
/.holdings.
>
*
Even the
staff of Slayton & Co., Inc., 408
mature In
were
-i.t'5?.
x**;
^
.
of the
shorter maturities of the partially
sold by the commercial banks in small
7^ *•;;*,r *'k
1
"/ SW
,.-'*4
1
longest eligible taxable issue, or the; last maturities of
the partially exempts do not result in the acquisition of securities that
Olive Street,
Most
.
issues
exempt
amounts.,*
■*
.
than 21 years,
more
/.-.*•>
Economic Progress in Germany
SUPPLY LIMITED
Two With Bond &
The supply of longrterm bonds available to the smaller commer?
(Continued irohi page 283)
cial banks, which are more largely savings
institutions, is limited.
Goodwin
maining restrictions on peaceful month has seen almost steady zero
i This has no doubt been responsible for some/of these institutions
(Special to The Financial Chronicle)
trade must be lifted and German weather
which * has
naturally
again going into high-grade corporate obligations, with maturities as
BOSTON, MASS. —George A. far out as
commerce, shorn of warlike ob¬ brought hardship, transportation
1985, in order to get income to. meet rising expenses.
jectives, be allowed to resume its difficulties, and a serious drop in
Peirce, Jr. and Gale-R.- Stevens Trust funds and certain of .the large banks have also been
buyers of normal
place in the world's trade. industrial production, Little wood
have become affiliated with Bond corporate issues.
;
\
Germany's gold, her foreign ex¬ or coal is availablefor German;
; Not so long ago, wheiHhe banks moved into the
&
Goodwin, r. Inc./ 30; Federal
long-term
change and her external assets house-heatingv Ruhr coal produc¬
/ corporate bond market, prices went ahead,* to -be sure, hut the
Street,
"T; // .v./.;:'-///'/: //';■,
generally have been seized for tion increased 10% or 12%, in the
;
-
.
...
decline that followed
sharp, because of the unprotected
was very
,
EQUIPMENT
r
;
/' *
>.
V
CERTIFICATES
and
The President stated that
low interest rates and undue fluctuations in the bond market were
depending upon business conditions.
Offerings Wanted * /
Immediate firm bids
This would
can
on
and will be
■
-
to indicate that the VA %
seem
long-term rate
maintained, with the monetary authorities ready
to intervene to keep the government bond market from going too
/far in ^ther direction.
... 5 .
low interest rates are
and
spun
The
per cent of the finished
textiles will be exported to help
meet the world shortage of cot¬
with
furnished
upon
request.
in
these loans.
.
.
1
,
f
.
above those shown at the end of 1945..
Valuation and; Appraisal
The
largest
increase
in
was
..
the
Chicago
;
showed holdings of government bonds up by
:
Complete dollar appraisal
pared with the
year
before.
„•
*
district,
which
$508,000,000 com-
The Cleveland
area
was
next
with bond positions $193,000,000 larger at the close of 1946, than
that of 1945.
.
Minor increases were reported for the Boston
issued each June 30 and
December 31.
.
,
/ and Richmond districts.... The largest decline took place in the
New York district followed by Philadelphia, San Francisco, St.
Louis and Atlanta....
Monthly
or Special
Appraisal 4 :
.
Our experience and facil¬
disposal.
vances
ISSUE IN DEMAND
forr
the
a
/number
such
as
and
Discussions
light
are
now
-
PHILADELPHIA
f
9
PEnnypacker 5-7330
NEW YORK
REctor 2-6528-29
.
.
private
Philadelphia,
wire*—
New
The largest purchase of the 244s was made by: the country /
banks, which added more than $137,000,000 to their portfolios,
Reserve City
Banks, New York City
Member Banks, ; Non- ^
Member Banks and Chicago Banks following in that order;
w Z
-
-
Teletype—PHLA 290
A
991
both
American
the
and
raised to 1800 calories for the nor¬
time, would reasonably meet min¬
both
zones.
mal consumer,
imum
which for the first
nutritional
standards
and
The
British, under the prevents the slow physical deteri¬
Bizonal Agreement, Will provide oration of the past.
equivalent amount of commod¬
ity advances which will also be
an
available for the combined area.
Return of German Trade to
/;
Despite
the® many problems,;
is gradually being made
Germany toward a tolerable
and peaceful solution.
Now that
progress
in
the
Normal Channels
American
and
British
zones
being joined, it is hoped that
before too long a similar agreeernment in Germany, fully sup¬
.ment for economic unity may be
ported by the War and State De¬
reached with the other two zones,
partment, is to return German for¬ and the
present partition of Ger¬
eign trade as quickly as possible tb
many ended.
normal commercial and banking
are
The policy of our Military Gov¬
-
/
The principal seller was other investors, including dealers, fol¬
lowed closely by savings banks, then insurance companies and gov¬
ernment
agencies and Federal.
Sept. ,15 and 30,
.
/
.
Purchases of this bond between
at prices that still show the buying institutions
profit, when compared with present quotations.
./, Commercial Bank holdings of the 2*4s due 1956/59 are small
compared with the amount outstanding which still gives them plenty
of leeway to add to their positions in this issue.
■ /i
.r;/
were
about one-half point
SECOND BEST
York
in
Corporation and with/ the ExportImport Bank to make these com¬
modity
advances
available
for
.
..,
Two
level
channels. The initiative of individ¬
.
CITY
this
British Zones of Germany can be
Reconstruction
export
non-transactional commercial
INCORPORATED
from
Food shipments
country in December
machinery.
proceeding
of
Purchases of government bonds by the commercial banks, for the
ual buyers and sellers is needed to
period ended Sept. 30, showed that the .newly eligible 2%% due
expand the small exports 'now
4956/59 was by far the most sought after, issue.
This security be¬
channelled through Military Gov¬
came eligible for
purchase by the deposit institutions on Sept. 15, and
ernment. German firms have al¬
the latest Treasury figures indicate that about
$253,000,000 of this
ready begun to correspond with
bond was bought by the commercial banks between the first
day of
their customers abroad/now that
its Eligibility and the end of the>
month.^ ; '
.
STROUD 8 COMPANY
make from the
Zone,
Finance
„
BANK PORTFOLIOS
Although government security holdings of the commercial banks
as a whole declined sharply in
1946, because of the debt redemption
program of the Treasury, positions in government bonds, of the re¬
porting member banks in 101 cities, at the close of last year, were
Semi-Annual
able to
were
chinawarej
Reconstruction Finance Corpora?
tion has arranged commodity ad¬
risk
involved
we
American
improved considerably and pres¬
ent prospects are quite encourage
ing. The American people should
realize .that food from this coun¬
try is/ saving. millions of '/Jive^
abroad/ By July I of this year, it
is hoped that the piresent • 1550
ton goods and which will pay for
the 50,000 tons of raw cotton. The
programs
chemicals
power,
of low interest rates will
Weekly List
in German mills.
woven
Sixty
to be/expected, irrespective of -the
the fluctuations in rates within the limits
depend upon business conditions, commod¬
ity prices, bank loans, demand and supply of business credit and the
political: party, in
ities at your
restitution.
...
the concern of the government.
,
practically all issues. V
GJadiy
and
planned export program will rer
quire large imports of raw- ma¬
.
TRUST,
:
reparations
past three months, which is a very
hopeful sign. However, the bitter
cold recently has prevented ade¬
terials which must be financed quate" distribution and coal stock
TRUMAN AND INTEREST RATES
first through government chanpiles are critically short. The food
President Truman's budget estimates, caused the expected re¬
nels^and later; by private entei"- situation looks better. In Novem¬
actions, and d^s^ite reports of. impending cuts 4n ^expenditures,-there
prisd^f We -have already shipped ber, food stocks in the British
will still* be astroAdihicaP figures to1 deal with.
/> . Debt service will
50,000 tons of cotton into the Zone were critically short but the
continue to be heavy, even after further debt retirement in the
coming American
Zone, which is being situation was met by food loans
year that may amount to between $3,000,000,000
$8,000,000,000
nature of this market and many institutions ended up with rather;
sizable decreases from cost prices....
-
\
,
*
.
,
'
The next most popular bond with the deposit institutions was the
2% due Dec. 15*1952/54, which showed the largest acquisitions this
time being made by the New York City member banks; . / . The
mail
is
permitted.
Military Gov¬
ernment must continue to control
Germany's foreign exchange for a
long time, but the present govern¬
ment-to-government dealings rin
goods should taper off as soon as
possible and the normal buying
and selling of exporters and im¬
porters take its place. In this way
Germany, / under necessary ■/ con¬
tinuing supervision, will gradually
become a peaceful workshop, pro¬
ducing goods for her own and the
world's benefit.
Germany
is
/PHILADELPHIA, PA. — Gerst¬
ley,
Sunstein
&
Co.,
213
South
Broad
Street, members of the New
York and Philadelphia Stock Ex¬
changes, will admit Morris Gross¬
man to partnership in the firm 011
January 23, on which date he will
acquire the New York Stock Ex¬
change/membership' of William
Gerstley JI.
Grobert in
Trading Dept.
Of Pulis, Dowling x
Pulis, Dowling & Co., 25 Broad
Street, New York City,
that
Carl
W.
Grobert is
anonunce
now
as¬
sociated with the firm in its trad-;
•
experiencing
Gerstley, Sunstein & Co.
Will AcEmit M, Grossman
her
second postwar winter. Last year
the weather was mild; this past
ing department. Mr. Grobert was
formerly with Frank C. Moore &
Volume ? 155 "Number 4560
THE COMMERCIAL A FINANCIAL"
CHRONICLE
285
'•"ill•
the outlawing of union
activity,
thb repeal -of - the Wagner
or
An Affirmative
(Continued from first page)
iiiietiOn of the-
■
The -House
has
now
rif
Representatives
Republican majority of
a
constaHtry "increas¬ bitration.
57, the Senate a Republican ma¬
jority1 of 6. -The 'responsibilityJ for
a
legislative, program,' therefore;
falls
primarily on ? Congress, ^ al¬
though, of Oourse^-iinder ;the Consituation, through his veto poWer,
! made - this
5 country
the
greatest country in Hhe -world.-
evitably, the arbitration boards
labOr
%^s he
j Remaining. Decontrol the First.«?
He- has fthe JCdnstitUfc
tfonai 'power'to j exebrite the daws,
./
r,.•
-.v.-.1
Task \rj:
;
courts
wage .scale
'
Which giyes him a wide freedom
of Choice in detOrmihing1 how
any
all
<...
The
gradually
Tn the field of
mittees
than
to prevail throughout
.
but
f
in the: foreign field lies in the
control " of the purse if "he asks
for
'
and
money,
through [ public
opinion, "Which follows to some
extent the views caressed On the
Congressional stage,
.Nevertheless,
field /the
in: the; domestic
-responsibility ^fall's; oh
the Republican Party, at least; to
initiate *a program of >legislative
action,
"
President
*
s
-
.
be definitely repealed,: preserving'
fundamental study. <£uch
a
might
well, be
continued
veterans' program,
time for the expansion
no
spending
in
except
necessary fields.
\
.
the
•
most
.
/;7;^i;77
;
•
Present income Taxes Unsound
7
I believe that
income
our
present per¬
taxes
people the huge
sum
of 39 billion V
dollars for a period beginning two ;
years-after-the end of the war. ^
Added to State ;'and local
taxes,
this is a total of 49 billion dollar^'
deri ls
Cofrect Fiscal Policy
I
•
The;; other
..
,
.i.-, .i
question; equalin
urgency and importance1 to : that
Of labor is the fiscal policy Of the
United States Government; A
heav^ bn all classes of peo^;
pie,* Single riieft
.
cor-
or women iearri-;
irig $1,200 a yekr, on which1 it'ikr ]
difficult enough to • live, * have; 16;
pay $110 in ftaxes. The
Of - the ^United
States
President '
-receiving
Congress and the 'Re¬
a
part
of a more permanent pro¬
gram "SUch» as the maintenance of
1
fyherieahHrob^
■
<
<
^
■
—
i
as
collective
r
I
NOTICE OF REDEMPTION
agents^
|hey;^hould:reiister: widi^ihe sec-^
,
bargaining
.
.
A I>abor jProgram r •
retar.y of Labor and furnish an¬
The Second prOgfam relates to nual financial reports to ; thpir
labor. The" pebpm Orid; wOrking-f mernbers.s*
r7^;;; v.;
..
$42,300,000
■
.m.
;
•
publican/majority in constructive
!: I ^thoroughly agree" with; the
action on many issUeS. His pro¬ merilth&riselves hayerreserited^ the
Interference to their;idaily lives "Preside nt; that ; jurisdictional,
posals Ore Sufficiently general ■* SO and
to the economic jrecon'struc^ f trikes; j&rid - ^secondary
boycotts
r
■
COMMONWEALTH OF PENNSYLVANIA
.
tion of thO^OouritiT^broughpabp^ ppght;^^toybe"outlawCd;-bri^air^
/trinity is left ffe^substahtial&grfeek
by; the ekeicise 'of arbitrary power, present time I Sfe'e no j usifkation
ment; The
TURNPIKE REVENUE 33/4% BONDS
_
Violent
diSSehsiOh
ih
the last Congress arose from the
President's tnsisterice Uri^a-tiurhr
ber- of measures 'in the" fpIalfOrnv
for -his
by labor uriion leaders almost as
muth as they -have Teserited the
interfererice by goVeremerit. The
suggestion, that .the ordiPary^ type -of secondary boycott!
upon ' him
by
myself.
Bill
the employer wOiild
l"®3-
not agree to
it. He mad;^"&^ stibrig^dv&ritaie'^iri
one
as
man
with
They
ift 4he; Case
arid it should not
be necessary to 'hold long hear-
part Of, this centiiry, there was
little CoHective bargaining because
dealing
;
last
•
-7;;i.f:~
■
PrajposalsVWhich Have :-Been
thou¬
r
sands of separate employees. THe
were.
year,
:
year.
In his
termination
of
redress
_
depending
on
-
the
Whether these measures will
re-
additionaBrestrictions
hostilities, the
a
complete
change in "his general -philosophy
from -that -which-prevailed 4ast
year.' I welcome the President's
actions, although I would like to
The
that
: indicated
theory of the Wagrier Acf tvUs 6m;therrpower'
the
employees ,of any em¬
ployer should 'have .the .right to
act
as
one^ and that'The employer
should not. interfere with their
eriganization ^pri thafpurposed The
laws passed by Congress, however,
call'attention' to the fact that the
-
of union leaders;
The'proposals' which deserve'
con-
■
Pennsylvania,'or at;the dption tof the holder, or registered iowrier, at
\he;principal 'dffice o£ Bankers Trust
\ ^Cqrripany, )^ Wall
Streetjn the Borough of Manhattan;
\J-tfcfe Uify^bf jtfew: Vofk, the Ipriridpal amount of said:
^
;;Jqrids and' accrued interestj thereon together with thb;;
:
; ; premium; above set f ofth,'and after said date intef est
:;
'
;
:
*
^
said riohds shan 'cease
to/accrue
the
*
closed
.
t
and interest
mafuririg';after said date shall become: void.
v
,
of
change .was brought about'by the
battle -which .the : Republicans #e]fe;;;supj^hierited^by hundieds
W admihistrativ'e rillfrigs; • all i famade last year and the .campaign
ing which brings about - thfese
vofable to labor, arid by cdurt
issues made by ' them arid ap¬
decisions which", in;: my opinion, |vm'ationdl--strikes' 'that interfere
proved by the people;
carried the '.law far ,beyond the in¬
-so" ^seriously with ^ the'welfare;
'With regard to 'a Republican tent Of
of the people.
Congress. The result has
3. Measures7 -ittteiided .'to
program;I^ Tiave -rio: right to: tier thfown the balance" of power fair
limit
; - violence in ?labor *
clare what that program will be. OVer on the labor union side. La¬
"disputes.
*';
4; Modificatron of the
It wiU be determined by the -546 bor 'leaders
Wagner Act.
have • ■ been- given
Republican "House members arid power ■ to insist on unreasonable 5. Proposals for a labor court• arid
the 51 Republican^senators; /Many
compulsory arbitration.
'
i
settlemerits? and since ihat power,
of 'them' are new/irienWho "have exists,
arbitrary: then Have nat¬
None of these'proposals has ienot had time to study the proburally taken advantage
of "it. Cejv^d as,yet
.
J
necessarily agree—may be grouped
in fivo'classes:- ' ;
*:
*
'shop.
'
'ijirnitalion; oh !the ipowbr of
; M'nation-Wide birinopbly bargain¬
VI
. f)n August i,;1947 *|h^f e^Will becoriie and be due land
!payabie atVthe FiilelityfPhiladelphia Trust Company,
; ^ L
Sideraitibn-f^ithf; which 1^^*db"not:
i; The ■} putlawing
.
cipaLamouht of; Commonwealth of PehnsylvaniavTurril r hi ^pike Revenue ^3%%Bohds;dated August 1; 1938, due5
c August l,"1968, and numbered T to
42,300, inclusive, at"
'the ^pi-incipal^animirii thereof;arid; accrued
inf§r^t7tb;
;
August 1,'1947, togetheriwith a-premiumof 4% of the
principaT amount thereof.
- ;
.
Guardia Act and the Wagner Act.
termination ' ■'of
President
TUrtlpike Commission arid / Fidelity-;
Philadelphia Tmt*€dmb^;asTrustee, Pehnsjdyariia ;
Turnpike Coriririissicmriereby^gives notice:df^^its iriferi^
^rfede^riitarid/ddes hereby^^Lfdr redemption:om;
v-K
;Au^st i;T947^alPo£ the - OUtJsfariding^$42,3OO;O0O prin-
til
Submitted-
advantage was>all on his^sidev TO
^tdre reqiiality • of; bargaining lis
this
balance, 'Congress
OPA; in his reduction of
perhift>s.ddubtful hrid^we -haveTek
passed a number of lawst notably
hOUsing^eOhtrol)arid"in his ending the;
Ciaytpri^^ Act,^^The KTorris-ba- Peivel^rcOiffitiess^suggestiimsr^^Tbr
of the laws
all kinds • of
last
the
: rPerinsylvania;
;
as w.ell as the removal, of fQreriien
of
the
Wagner
be retained. Tn the early
should
his leftWihg supported Hiis pre^ritfhesskge- raises ohly one or 'two. of
these issues, so that I really be¬
lieve there will be more harmony
between the President; this Re¬
publican jCongress than there was
•
;
from.,.the_definition-of employees
iriidprfthe;Wagner ^Aciiafb^cohr!!
j;ained;,in the; bill intr-oduced by
Act ^ehator Bail; Senator ;Smlth .and
principle
^Biir /arid "other' measures
Notice is hefeby• given that_pursuant to the terms of
-Trust' IridarifOfe"rdated fAugust 1, 1938 between"
'\Z
fopLariyreaspn shorildbeJegmh^i
{- AlLof thpse legislative proposals
RepubliCatfT^fty-has frequently
that the soiuoriginal Full'Employ* tion' of
eiripioyer-eriiplbyee rela-;
ment Bill, the federalization of!all
PltmshipSreSts; On;' a ^ soun^ System
unemployment compensation, ex*
Of ;■
Cbliecliyei hargairiirig; ^ If 'this
tension of the powers of the OPA
means Uhy things it; mOanS
that^the
without
pressed
1
attacking ,innocent "third, parties
oj the Political Action Committee, Heciared?its: belief
such as the
Case
*
r
7
-
1
All bonds' are required to 'be presented at either of
said of&ces for redemption and payment,,.
,
ij-i
coupons'
»
.
f
Cbuponriohds should be'accompanied by all coupons
v >
"appeftainingthereto-ahd maturing ^bsequent fo Auv :
gustT; i947;Coriribrisv|riatdripg Au^ist l, 1947 or prior
y. ; ." thereto should^be detabhed and /presented f or payment
Z":->in the;uSual mahher.BullyTegistered^ bonds; or-bOnds c
registered as to
incipal ohly should be accompanied
>
Ii by:
assigninerits or "transfer powers duly executed in
'
mi
v
;
;
'blank.
:
' r >"
-
Pennsylvania
;
-
7
■- :■■■■■•
¥&
turnpike commission
•
'By^JAlViES F. TORRkNCE, Secretary and
•
t
•jDat^: -January • 14, ;1947«
,
vlems
.before,Congress.inf detail.;
Other
leaders' have beea..forced
follow the radicals or lose their
ferences of opinion" amohg "Rejobs, In biy opinion, we;: should
.publicans,"and there hiust be'Sub-. try
modify ;at" least -the' rulings
stantial agreement on any official and
opinions, until; employer -and
party program. I can only state in employee ; in each .operating unit
a general
way; my "Own views Of deal With each other on a sub-r
•What a program shOuld be on the stantiaily :
equal basis. "
7 :■
There are,, of course, many dif¬
,
more
important issues.'.
•
-
.
tO
c
■
The main issue of the election
If wb are'
going to rely
on
CoT-
If it-'turns out-'that
one
or'
PRIVILEGE OF IMMEDIATE
more
,
arc- capable:;of;prbmpt*Tegislative
decision,- they could be added- to
the
bill
preliminary bill and
reported
Match 1. /*'.•
to
the
a
single
Senate
by
;
•'
There are plenty of radical pro¬
posals "apparently designed to de¬
'
Tieamret
h. #.
•w
sufficient Study7 but
ioinb ;bf f t^em % cbuld^Well ;be; iri^
fcluded ;ih the 'hearings to he "held J
lective; bnrgainirig as - a "solution
was? the restoration of freedom,
of our problems, T do, not see how stroy unions
altogether, or punish
both to individuals arid^tO busi¬ We can set
up any general plan of them for asserting their unquesness, and the elimination or TO^ labor i Courts and compulsory ar¬ tforied fights. Punitive
legislation,
.
'
t&cb r pqlipy;tis7 the* Very basis" of $75,000 Va year 'pays ^lOjOOO7 ift ;
sound ;econ0mic7rcbriditiQns^ ahd taxes. Those corporation execu- ■
arising in the, 'interpretation of
Cbllective bargaining agreemenb> essential to .'all other Steps: neces¬ tiVes who can do so muchby bril^.1
sary to -avoid another ^depression; liant
leadership
to
improve *
already made.
The; president
will': submit
a methods and techniques of man¬
apan. Ah immediate study-should
;
Oiir .program would set up a
also; beiriade^Of the Various1 pre- Strong,
Congress agement and r increase ThO proV
Independent* mediation budget, tomorrow to
Which is said to ;aSk >fOr thei%x^ ductivity of workers, have to pay
war -New. "Deal ^laWs dn; order to board,: and strikes should be
To^-i
cut7" down
the ; bread discretion bidden for 60 .'days while an im¬ penditurc of ;some .37 billion dol¬ more than half their -income to
the government and have' every
partial, government, with -nil its lars, including ; 1 I tbillion *dollars
givefc/fofsO^iriri^
boards, and ;eohfirie : their abtkm authority, urges a solution- by con-. for .-the; armed; services*. Tnrmy iribentive Ho quit wbrkirig ^at -fhe ^
Opinion jWlthoutcutting, the'arihed earliest possible time. \ The; very
tofthe frCal purpose Of the various Ciliation.
p
,
" \ "P
i - We
should make' unioris Us fen 4eryiceSi;c wb^houM;7bb;to Wealthy pay up to 90%, and. cer¬
drafted by smart lawyers in the Sponsible .as
Squeeze .from 3 to -4 billion dol-i tainly ;have ;no incentive to :tak6 1
employers.
They
broadest possible terras- to give |hould be. rfequtred 'to "engage in lars out of that budget So that our ar risk in the new ventures which '
1
IhatHI riITriil te^d ridmiriistrative collective: bargaining'.as the em¬ total expenditures:-do 'riot - exceed
(Continued on page 290) * i
iVC'5' *
\j- i, '■
■' )
UV
power; whibh -Was C-ihe -very?, .es-f ployer's
r ctitiirbd, :and;ihey,
serice bf New Deal policy. When
Shoiijld :be held responsible in
Congress wishes to cOritiriue these Federal court for the violation, of
prily -those which -should 'form;
program^i the^co^ Of ;^ch prot their collective bargaining Conbe " defihitely 'delim- tract^Ilfhey ^ishttb-beberiif^
Message WelCOniefl
m^te»fhe^tat^0fTh|
with
serv¬
interest
.
f'.o
Union. It expresses fhis' desi're to
work
a
al¬
are
the same, objection tp "arbitration
if. the dispute relates -to questiorrs
,;I ."believe 'that all Republicans ^ram Should
ited;by law.
welcomed 5:tt3^tohe^fi:the:dPresi^'
/debt's
armed
debt
our
of our- bill, either
bythe committees of Congress or. or nearly one-third of the national!
by such aToriimissiCn as the pres¬ income.- Every man arid every
Woman
is working one day in
ident Tias -recommended, :
three foy'government. The 'bur- !
prft:
supreme because "of his
International Fund
and Bank,
ihany ^othei^ -international institu¬
tions, arid the -Reciprocal H
Agreement "Act. / Almost the only
restraint on the TreSidOrit's power
1947/ is
our
public
our
of
v
There
even,
complicated
more
handled
after -the .report
•
lic utilities in which rates
be
without
Study
pletely regimented economy.f
pendent 'On the' various -declara-
can-
more
industry. If government fixes
foreign policy lie Jiohs of;emergeridy, 'on/the dura-1 ready. fixed,
at this, time
me
I ddriiit that this latter argument
dbfes riot apply so strongly to
pub¬
him by Congress in the
legislation
setting up the United Nations, the
and
sonal
trie.p,rqposals
liontof "the ^arr arid Ori ^specifiC think We should get away from
C^stitntionaf.; pOWOr^; raiid^ the; hates, which >' President Triimah government "dictation. of;/?wage
did;mot ItermiriatO/IT^
wide delegation of
should mte schedules.; There cannot, be
power given to
is almost
of Congress and not by
special commission. Some of
some
ices, of
of
-
I
a
President's bwn^icUons, There/are,
program however, a number of-laws de¬
shall be administered.
\
believe very strongly that the
preparation at this time of a labor
bill should be done by the com¬
Wages; v'it rmust
inevtibaly • fix
prices, and we soon have- a com¬
be
worked out. We carinotHell him in
VdetailHiPw^
peace.
or
adopt
first!task, therefore, -is -the
reduction and ending of controls,
partially ^accomplished' -by - the
legisTatiVe^grarit of ppwOr 'shall
•
a
33 Vz billion dollars. With
the tre¬
mendous cost of
threaten the;
1 ike elaborate
changes in fhe.basic: theory ;of the .soundness of our economic strue- *
lure. The President's
arid niOUrSi ;it: leads Jtd the'fixing Wagrief^^^
budget ap¬
Aeti; or ^even the nation^
Of wages by the" government.; In¬ wide ba^amiirg 'maftef, seem to parently, proposes to levy on the'
same^pnriciplOs^^'Of:fS*eOddrii which
of; the? legislati vef'fprocess; * "'Nor
pVeciated;
such
system
IS paff Of the. labor laws it dis-
have
should ?hls-<Other
As long as
'Act,
would, in my opinion, destroy the
very collective bargaining process
Which should be the basis of labor
ing; interference from autocratic
Washington7 bureaus arid" auto-r courages collective bargaining
bratic labor leaders. This was the b"e c a us e one
party
or
the
issue made by the Republicans, other always feels that he
pari get
and the' overwbelmmg vote; ^ k' better deal
by failing to agree
their candidates- showed .that the arid l lettirig the arbitration; board
people desired "reconversion apd
the 'resumption -of progress
in;the compulsory "arbitration covers the
thiited ^States; On the basis rif trie furidamerital questions. of» wages
The Gfe&t Bower of trie President
•
Program
or
;
PAYMENT,
Holders And registered owners of said bonds may at
their option .surrender the same as aforesaid 6at .any
time prior to August 1,1947 and obtain immediate pay¬
ment of the principal thereof and the premium of 4%.
Coupons maturing on February 1; 1947 and August 1,
1947, will also be paid immediately at their face amount
•
if surrendered witlj said bonds; or they may be de¬
tached and presented for payment in the usual manner.
|
"■»;
THE COMMERCIAL & FINANCIAL CHRONICLE
2290
Thursday, January 16, 1947 ?
;';VVS-
whole success, and of the income
An Affirmative
in
government or municipal bonds.
The whole incentive to work hard
is deadened.
1
•
Furthermore, when taxes are so
there
•burdensome
is
constant
a
effort to redress them by increas¬
ing wages and salaries throughout
their entire range. That means increased costs
and therefore in-
•
-
to spend
selves into prosperity. Little
likely
is
pressure
'2. -;
.evaded.
to
I iI
my
income £
sonal
of
duction
aanced budget
r;
r
^problem before us.; I / have never
planned econ-
Cbeen in favor of a
to regulate
detail
[from central bureaus, but I do
/recognize that there must be an
'intelligent* direction of* gpvernr the
ctment fiscal* policy and
at least
which
(Omy
attempts
matters, in
economic
(ccontrol of credit if we are going
iio
be able to prevent booms and
I have felt that un¬
^depressions.
ites
we
sions
could
eliminate
as severe as
depres¬
that of the thir¬
ties, the people would soon say
that, brilliant as the results of the
free enterprise system,, they are
not going through the hardship
/and suffering involved in repeated
'-
Either
depressions.
major
our
system must solve this problem
cor' the people may: well turn to
.planned socialism, however auto¬
cratic and soporific its effects. So,
in the so-called Full Employment
3Bill of last year, as rewritten by
the Republicans^ a commission' of
■i three -economic
advisorsf was. set
tip;
sand
whole 'problem
to study ,the
make
recommenda-
annual
;.tions for legislation to deal with it.
political
mended
■
on
in¬
much
on
as
of their
own
At¬
tempts to tax income! business
inheritances
or
heavily than
other States bnly results in driv¬
ing the taxpayer; to change his
residence
Most
of
more
his
move
or
the
business.
State: revenues
are
already tagged for the basic gov¬
services
ernmental
world.
war
Any
suffering
un¬
in the history of the
addition
which
we
and
schools
roads.
for
and
welfare
shown
program is most
in
the proposed
measures
of
clearly
health
the Federal Govern¬
ment. President Truman advocates
the
a
Wagner-Murray-Dingell Bill,
compulsory sickness in¬
Federal
surance/plan.
there
3%
Under
that
plan
would
or
come
be a payroll tax of
4% and and equivalent in¬
tax On those who are not
It
seems
the limit
to
me,
however, that
in
providing money is to reach the
lowest-income groups.
The very
hypothesis on which we assist the
lowest
income
groups
is
the
wealth and prosperity: of the av¬
erage citizen. If we relieved him
of the job pf earning his own way
merits.
The Welfare program should be
handled as such. I am particularly
'/
hnd
;
Because
we;re
systems
set up
.
per capital income falls below the
national average.
:
Of course it is peculiarly neces**
■
sary in the case*of education that;
the Federal, Government does not w
interfere in any way with the sys-?.
tern of education provided by the ,
States.
If
to
want
we
maintain;
freedom in this
country, we must
permit the people of each locality
to determine the kind of education
they want their children to receive. We don't want the children
-
have managed to get control of a
Federal bureau of education. That
medical
is the reason why we cannot
Federal aid to private arid
care
to all the
people of
the United States. In my
opinion,
the plan violates every principle
of sound Federal
Consequently,
Federal interest
of
him.
before
bureau to pay all the doctors in
the United States to give free
aid. It not only
socializes medicine, but it Fed¬
large/ new burden falls eralizes medicine. The entire ad¬
the States, they have no means ministration
of medical care would
of raising the mbney.
We saw be transferred to a
Washington
this -clearly in the huge urienibureau and taken away from the
ployment crisis in 1932. Finally States and local
gbvernments. It
the Federal government can pro¬
is impossible to. conceive of any
vide the incentive, the education
plan which could bring the Fed¬
and the leadership to stimulate
eral Government more
action by the various States.
lie
tax
Four or five billion of this country educated in one
dollars would pour into Washing*' kind of ideology, because a group
ton to be used by a
Washington of serious thinkers, good or bad,
on
the
which
employed.
when any
recom¬
measures
own
as
estate has reached the limit.
the Economic Re¬
their
almost
are
place, States
necessarily limited/ in their
ability to tax. The taxation of real
port comes to make its recommendations, I hope it will confine
itself to the problem of creating
and maintaining in this Country a
stable economy, of alleviating the
severity
of business recessions
and keeping employment at the
highest possible level. Other com¬
mittees of Congress can consider
pperiods of hard times and depres¬
is the most vital long-term
sion
aMl
their effect
on
that of
are
later, but those pro¬
ought, to stand on their own
Committee
that the elimination of recurrent
as
States. In the second
problem of full employment and
prosperity
is
only
incidental.
When
the Joint Congressional
'iThe Republican.Party recognizes
whole
ple of those States
no
because
feet
the nation is
modern make to the Federal budget must
income be irha reasonable amount.
people of different States
Health Program Significant
beyond question that per
income of some States is
The proper limitation of a social
terested in the welfare of the peo¬
don't
grams
Must Be
Depressions
Avoided
/Major
a
shall discuss
and; a ,'balr
expenses
to feel
pthers. The job we are trying to
do is beyond their capacity, and
yet the people of the country as
ciprocal Trade Agreement pro¬
gram.. Of course, there is a lot of
room for improvement in health,
education and welfare, which I
tion must be contingent on the re¬
Some people seem
capita
program, as well as the Hull Re¬
(iiother year. Of course tax reduc¬
opportunities
largely to; provide financing for'
education, I believe that most of
the Federal money in this field
should go to those States whose,
than
poorer
less than half as much
solution to the prob¬
employment. .Thereport is used as a vehicle'to recom¬
mend a complete social welfare
wait for ari-
understand the
can
greatest
much
are very
shows
lem of full
tax.; Corporation
taxes and excise can
:
which we, are/taxing. This- is * par*
ticularly true at the present time
State
of the
a
furnishes
>
is not the fact, but
methods
of
computing
ment
to
i.
der the tremendous burden of the
this
deny that all govern¬
spending has some relation
stable economy but it is en¬
tirely
secondary
and
certainly
be
v\.;.2:2
>*♦*>'»«
when
others.
Unemployment
m
opinion it is essential
/that personal income taxes be reiduced. If the budget can possibly
t he held to 33 Vz billion dollars and
if the excise taxes are restored, it
; should
be possible to reduce by
J20% the total burden- of the per¬
ZIn
em¬
Spending No Solution for
of inflation. Inflation is
r-f
V
States
our¬
lem,
always the method by which ex¬
"
,
should be administered by
the States? In the first place some
phasis is laid on the necessity of
balancing
the
Federal
budget.
Federally controlled employ¬
ment! service,
" F.E.P.C.' laws,
school-lunch programs, farm se¬
curity programs, increased unem¬
ployment compensation, are all
brought forward as part of a pro¬
gram to solve the depression prob¬
prices. In effect, the high
5 .taxes
are paid
through the easy
panacea
going
■
which
In short, we
measure.
again
are
creased
cessive
Deal
New
(Continued from page 289)
create employment or do other¬
wise than leave their money idle
Program
that every child shall receive at
least enough education W that he
into the
home of the average man and in¬
terfere more with his independ¬
ence to conduct
his daily life as
he wishes. It is tremendously ex¬
pensive and imposes a great addi¬
rochial schools in
givet
pa-/
State whose
a
system of education refuses such
aid and
separates common; school
educationi; completely from '.'re¬
ligious education. Under our bill*
if the State recognizes and sup¬
private
ports
schools with its
parochial
and
it can
Federal money for the .same
use
purpose.
own money,
'
r
A Housing Program
In the housing field/ the same
general principle should apply*,
Federal aid to be extended to as¬
sist States and local communities,
their request, to provide min¬
decent housing. for -those
tion to the burden of taxation. It
on
is
imum
all
very
well to call
it insur¬
but; compulsory insurance is
ance,
not insurance at
all. It is
tax.
a
You have to pay-it whether you
want to or not, and whether you
wrint Federal medical care or not.
unable
to
pay
for it themselves.-
There should be
no
direct aid
ex¬
cept to the lowest income groups.
I have been unable to find any
supporting his own family,
we would be substituting govern¬
way in which this can be done,/
myself in sound de¬
ment action for private initiative It takes thai much from the in¬ except through a program of pub¬
velopment Of programs for social
and finally for private freedom. come available for
spending on lic housing, and I believe Federal
security, housing, medical care
The nation's interest, as I see it,
support should be given to such
and education.
the things your family wants. , '
Primarily, these
a program* Nothing is more im-*
is only in, helping the States tq
are matters falling within the re¬
^rthermpre/ it covers 99%: .of portant / if -we want all of ous
sponsibility of the States and lo¬ put Ija. i-floor imder2, subsistence, the*peopIe instead of merely aid¬
children to have a reasonable op¬
cal governments. Their adminis¬ housing, medical care and educa¬ ing the lowest income groups. We
tration and control must remain tion, the essentials of life and op¬ have long admitted the principle portunity in life than at least to
portunity. I don't say that the of
give - an opportunity for decent
with those governments.
In my
giving free medical care to
Federal Government cannot fur¬
home surroundings for every fam¬
those unable to pay for it. Nearly
opinion, we cannot retain freedom
nish aid in the way of education
ily. The program is expensive and
in ^this country if all power is
every city provides general hos¬
arid/ information in other fields,
the Federal Government cannot
concentrated in Washington. But
pitals and necessary assistance to
but unless the incentive in such
afford more than reasonable - as-;
that does not mean that the Fed¬
the poor. It is quite true that .this
fields comes from the citizen him¬
sistance. Public housing
should
eral; Government can wash its
State and local aid has grown up
not be more than 10% of the total
hands of matters so closely con¬ self, Federal aid or even State aid im a rather haphazard way,-: aqd
is not going to be of much use. that It- does
not reach some pf the nqw (construction,-the other 90% f
cerned with the welfare of the
tri be provided on the usual eco-2
The basis for Federal tax assist¬
entire nation. / •
poorer/ districts' land particularly
ririmic basis with private financing. //
There is-t no. Constitutional ob- ance,; in my opinion, is only to as* the rural districts. But in order to
/
The general welfare program,
sist in the elimination of hardship
fill those gaps it is not necessary
j ection to, assisting. the .States in
of course, also requires the ex¬
and povei$y.
;
,
the development of. adequate pro¬
to throw away the whole medical
I quite realize (hat whenever system which on the whole has tension of social security and old
grams. I believe that the people of
age payments to those groups of
this country have decided that in Federal money is involved there given this country the best medi¬
is a tendency to insist on Federal cal care in the world. It is not the population who do not. now
a country so wealthy, and capable
receive it,
of such huge production, we can power, but I believe, that if the necessary to make every doctor an
I have tried to outline the basis
abolish
extreme
hardship
and legislaive ' policy is sufficiently employee of the Federal Govern¬
interested:
,
.
..
.
,
|The President's Economic Report
1 We
have
now' received
the
^economic report of the President,
sand it is to be considered by the
JJoint Committee
on
the Economic
^Report. The report is
teresting, valuable
tent* document.
It sets
curately the facts
very in¬
inconsis¬
a
and
on
forth
ac¬
which conbut it
compromise
cclusions must be reached,
2ioeems to have been
a
declared
poverty, and obviously this is only
possible if we bring into play the
resources
free
the
of the entire nation; Our
enterprise system produces
highest average standard of
living in the world, but since it is
administrative
the
of¬
ment.
:,
-
-
-
has been true of many Federal
even
programs,
though
Medicine
a
/Economic. Advisers
who
took
an
based
on
work
The Republicans have proposed
plan of Federal aid to the
incentive and reward for
done,
i
around all
;
port
we
Of
the
see
New Deal.
corners
of the
re-
conditions
the whiskers of Mr.
The spending theories
Harry Hopkins gradually take
Port
that
seems
mass
to
adopt the theory
purchasing
power is the
-solution of alj oroblems and fur¬
nishes a justification for
every
the
lower
income
sumption/There is no great reser¬
voir
of
profits.
In
some
years
tunity in life which will permit profits are high, and in others they
the development of their full ca¬ disappear. We cannot impose on
pacities. ■ •' 2f>\;2/;' ■/.
four-fifths of the population so
command and determine the ulti¬
mate recommendations. The re-
t
of
groups, and particularly to give to
their children the equal oppor¬
*.
(••.
V,
.
':V. .2^2'
.'VwV:/; •.'•
/,
,
...
'■•'■'V'-:..
\
Federal Assistance to the States
What
is
the
justification
Federal ^ assistance
in
the
for
fields
heavy
a
tax
as
to kill the incen¬
tive and the willingness to
which
is
the
very
work,
basis .of
our
other fields. I have introduced
bill
a
providing for Federal aid to
education
in
order
that
child shall receive at least
imum education
every
a
min¬
regardless of the
poverty of the State in which he
lives. I believe
ernment
is
the Federal Gov¬
interested
in
welfare program
the Federal
seeing
play
in
it.
long-term proposals,
and require study and discussion.
We should get a good start this
These
more
determined
New
Dealers States contingent on their setting
there' are always a have tried to run State bureaus, up a more systematic and compre¬
usually with the support of some hensive plan to see that every cit¬
^orthodox view of economic prob¬ good many people who, through
misfortune or lack of ability or broad New Deal language in the izen unable to pay for medical
lems, and someone in the Presi¬
Federal law. The first essential care can receive doctors' services
even through their own fault, fall
dent's
office
who
might have
far behind
the
procession and condition, of State aid is that com¬ necessary for himself and his
/written the old reports of the Naplete power of administration rest family. We are proposing to spend
itional Resources Planning Board present a picture of need in the
midst of plenty. There is an eco¬ with the States as long as the about 200 million dollars after
iin cooperation with Henry Walnomic school of thought which funds are used for*,the. basic pur¬ 1948. First to stimulate the States
;dace.;22;;:;f^
to a comprehensive survey of such
takes the position that these peo¬ pose of the law,
The report properly; debunks
Another condition must be that care, and then to establish the
ple deserve poverty and should
the theory
that the depression
suffer for the benefit of the gen¬ the amount of money is not so necessary improvements. In short,
^problem can be solved by manipu¬
eral system. Regardless of eco¬ great as to impose an excessive we propose to fill up the gaps in
lating a public works program. It
nomic
theories,
however,
the burden on the taxpayer. In the the existing system instead of
rrecognizes that the best method of
American people are a humane long ; run,
the
lowest
income throwing that system away and
bbringing rear purchasing power to
people, and they intend to pre¬ groups can only be assisted by
consumers is through the reduc¬
plunging into a vast scheme whose
vent suffering. They believe in
taking directly or indirectly from
tion of prices rather than the inadministration 'would add
extensive private charity and give the rest of the population some very
crease
in
wages,
although
it
freely. But more than that, any¬ part of the earnings which they 500,000 employees to the Federal
/hedges on the question like a poone who has been in Congress or
would otherwise be receiving at payroll.
.t litical report instead of a courag¬
the State Legislature knows the or about the same time. There is
eous economic statement.,
:: The same
principle applies to
tremendous popular support be¬ no such thing as a great national
ZOn the
other hand, I peeking
hind
measures
to
improve the reserve to nrovide current con¬ the Republican program in the
bbetween the President's Board of
sound public
a
the part which
Government should
Federal Aid for States in
aid
other
of
and
of the Federal Government
ficers
will accept the theory and the role
which is assigned to them.
That
are
year, although our first attention
must be given to the immediate
problems which we face.
Essentially, the Republican po¬
sition is that the only sound
basis
in the United States
is the freedom of the individual to
direct his own life, the freedom of
for progress
if local; community to govern it-'
self, the freedom of business to
expand and create more produc¬
tion arid
employment at its own
discretion
so
long
as
it does not
infringe on the rights of others or
general freetjom of competi¬
the
tion. It is not necessary to turn to
socialism for further progress in
any
field. A sound public welfare
program
can
be completely, de¬
veloped without infringing on this
freedom. The tremendous progress
in
this
made
which has been
country
in
the
last
been due to the
160
the very basis of our
The
only
sound
further progress is
erty. ;4
years
has
liberty which was.
Constitution.
foundation for
that
',/V
same
lib¬
.Volume 165 .Number 4560'
"
■
THE COMMERCIAL & FINANCIAL CHRONICLE *
"
new aids in spraying
crops, de¬ such as soy beans, which const!-*
fecting and pjeyenting fprest.fires, tute;d Vast new,industry in them¬
patroling , pipe" lines,
directing selves, these developments are the
traffic, laying wire and a host of forerunners of far-reachin#
Today's Economic Factors Facing Management
economic development, for we are
(Continued from first page)
vantage of the opportunities of a in the midst of a great technologi¬
dynamic period, the shape of cal revolution, which has already
which we can see only vaguely at produced vast new industries and
this time. My assignment in this gives promise that new invest¬
.paper is ; td outline the results of ment in productive enterprise can
some of the studies Which we have again be a dynamic force making
:
:
made at the Bank of the Manhat¬
for economic expansion.
power
generation—not to speak of
atomic energy—there are potenti¬
alities for bringing about changes
of
profound significance in the
efficiency and cost of power for
industry and transportation.
In air transport—domestic and
international—we have not only
the means of speeding the move¬
And the
tan Company of the basic forces technological potentialities
seem
Whlch^are^likelyrto be the deter¬ likely in the long run to be real¬ ment of men and materials but of
mining factors insetting the pat^ ized,- since many of the barriers to reducing costs in many instances.
tern of our economic development, business :>axpansiony which rkept { New discoveries in powder met¬
and in charting business policies, American * industry in the» dol¬ allurgy are creating an unadvermetal
and
in
setting ? up
production drums for over a decade, have re¬ tised -revolution; in : the
schedules, financial budgets and cently been removed. The defla¬ working industry with. porous,
capital programs in the challeng¬ tion, first in the volume of money, self-lubricating bearings and ma¬
ing situation we appear likely to then in the rapidity of its turn¬ chine tools of incredible hardness
face.
over, which accompanied and fol¬ and durability; and also we have
new
drilling techniques,
faster
For the purpose of this paper it lowed the dreariest and most dev¬
feeds for automatic machines, cen¬
Is useful to divide the postwar pe¬ astating depression this Nation
has ever experienced is now be¬ trifugal |<6rging
and ; electronic
riod into several phases:
hind us. "Asglobal war of defense controls for whole -rbatteriesof
Phase I—A period of reconver¬
machines—all of which mean con¬
against powerfxd enemies, which
sion, demobilization; and decon- was a
deflationary factor on in¬ siderable savings in materials and
trol. We seem to be near the end
vestment even in the late '30s manhours of labor used in produc¬
of this phase.
when the clouds of conflict were ing the goods w4need.iNew: light
Phase II—A period of exten¬
forming, has been fought and won. metals at new low prices, we may
sive readjustment made neces¬ The
people have recently elected be sure, ultimately will reduce
sary by the. many distortions, a new Congress under
circum¬ significantly the initial and main¬
maladjustmehts,? and;ctensions
Which
wa
stances which
leave
doubt of
no
have inherited from their determination to have done
the
wnr and reconversion years.
The breadth of and time re¬
with
anti-business
the
which
for
more
than
policies
a
trucks
of
the
other uses*
'
Finally,
\
among various industries, com¬
modities, and areas of the coun¬
try. awhile the" timing and brr der of developments in this
phase do not lend themselves to
precise prediction there is basis
for the belief that the required
changesr-rsome of which may
well
be r: painful—-should
be
made without
a
prolonged or
severe depression unless labor
hnions. paralyze our sensitively
; organized industrial society and
keep efficiency so low that our
On
this
evidence
optimistic
appraisal of the post-readjustment
our
In
weeders.
other
such
of
Each of
is vaguely aware
us
that
wealth
of^ynthetic
something
revolutionary j has
emerged from the industrial lab¬ materials, such as rubber, plastics,
oratories in the past decade; but, unbreakable* glassy new coatings
manufacturers have no alter¬
for old as well as new materials;
native
but
to
raise
finished while it is easy- io see that in our and
new fibres of amazing versa¬
own business there are new proc¬
goods prices to a point Where
The
esses to be integrated into the in¬ tility, utility and cheapness,
;the purchasing power of in¬
scientific wizards of our great
dustrial pattern^py here and there
comes will be severely curtailed.
chemical industry have provided
The belief that no -severe or a new product to be developed,
longer-lasting paints,
there is little recognition rof the synthetic
prolonged depression is called
new and more effective glues, new
for in the near future, unless opportunity for expansion which
uses for waste materials too nu¬
labor unions force business into these amazing developments offer
merous to mention and new deter¬
to the economy as a whole. It is
);a;tailspim is based on:
gents. They have also developed
,
'f
—the very substantial back¬ perhaps not too much to say that
we stand on the edge* of one of
logs of deferred demand which
the most glorious periods of man's
have yet to be met,
struggle to increase his economic
y ;■* —the clear evidence that the
well-rbeing, theway having- been
monetary and banking struc¬
tures are so strong as to be vir¬ prepared for a new adventure in
tually immune to violent de¬ conquering want and raising the
standard of living to levels un¬
flation,
dreamed of even in this land of
—the
undeniably strong fi¬
nancial Fositiotf of the people great productive achievement. A
and of business, individual hold¬ partial list of the- new methods,
materials and machines available
ings of U. S. Bonds, currency
to industry to enable it to increase
and bank deposits being $106
billions higher and corporation the( production of better goods at
lower real cost follows:
net working capital $29 billions
higher than in 1939.
New Methods, Materials and
to
present
.,
or
This is but
new
a
partial list of the
industries, methods, machines
and materials which applied sci¬
ence
is
making
available
to
American industry, yet it is long
enough to show that we are o»
the edge of a period when new
(Continued on page 292) ,
of
Chile
of Valparaiso , City of Santiago, and
On and. after
February-1, 1947,lin accordance with
provisions of Law No. 5580 of January 31, 1935
as
.regulated by Decree No. 1730 of May 17, 1938 and
Decree No. 37 of January 4, 1936 of the Republic of
Chile
(which decrees are now consolidated into
r
3837
of October 24, 1938) and decrees
thereto, holders of assented bonds of
any of the above loans will; be entitled to a payment
at the rate t>f $14.15 per $1,000 bond against
presentation and surrender: for cancellation * of> thd v i
coupons corresponding to said payment as-set forth
No.
issued pursuant
-
in letter of transmittal.
The above payment
will be made only in respect of
bonds which have been
stamped with appropriate legend
tt*
to indicate
they have assented to the provisions of
aforesaid Law and Decrees (hereinafter referred to
the
the
as
that
"Plan").
In the
case
of bonds which have been
after October 24,
or
so stamped on
1938, the presently announced pay¬
ment will be made
against presentation and surrender
coupons corresponding to said
payment under the Plan and the bonds need not be
presented.
\ ;
for cancellation of the
In the
case
of bonds of the above issues which have
.
—the fact that there have been
Machines
many predictions of; a readIn the area of electronics we
adjustment in 1947 that many have new automatic counters, new
businesses are following such
controls over quality? new meth¬
cautious policies as tQ proyide a ods';? of color analysis^-and?new
degree of insurance against the means for making industrial proc¬
need for serious retrenchment
esses automatic, cheaper and saf¬
so
*.
;
later.
Phase II thus
,
er.
seems
likely to
We
now
have cheaper means
fluorescence
against
a
The chemical
wealth of
phew uses.
industry is in fact a
near mir¬
veritable storehouse of
with
acles
creating
new
potentialities for
products as well as
markets for old
new
ones
if
en¬
terprise ; is permitted to develop
them,
addition
to
all
these
new
products and processes with their
vast implications as to material
progress,
quality
and cost reduction,
in
areas
new
which
industries
improvement
there are many
clearly defined
are
forming.
Some hew industries of the fu¬
ture—and not. so, distant future at
that—are
field of
lation,
competition, considerable
? economic
instability, high > but
volatile; prices
with
upward
trends of produtcion, consump¬
tion, and the standard of living.
* It is this phase to which the discussion;. which* follows,.is di¬
rected.
to be expected in the
radio, in frequency modu¬
facsimile
reproduction,
television in black and in color,
trucks,
railroad
transportation;
in¬ etc.
In
air
dustry so that work performance
conditioning we have
can be increased, new means for
barely scratched the surface of a
new industry which provides the
determining the freshness of foods
and of preventing spoilage, new mechanism not only for making
methods for detecting plant dis¬ life more comfortable, but also for
ease
and infections—all of these creating conditions where working
capable of lowering costs and in¬ efficiency is increased, new stand¬
creasing output somewhere along ards of precision are feasible, and
cheaper lighting for
the line.
!
In super-octane gasoline, in the
new
materials
can
be
>
worked
economically.
mass production of small
y This may Well be .an historically charger,: in the gas- turbine and in airplanes we may look forward
propitious moment in the Nation's the increased efficiency of steam not only to. a hew industry: but :to
The Technological Revolution
.
A
diesel engine, in the turbo-super¬
to
on
or
before December 31, 1947.
detailed
more
announced payment
of transmittal.
notice concerning the presently
will be furnished with form letters
Presentation of
New Industries
In
the Plan, said payment will be made
presentation of the bonds with all unpaid
attached for stamping to evidence their assent
coupons
to the Plan
vast
the home and better light for
tense
,
which offer
In frozen foods there is a vast
tempering, bonding and sew¬
be a
period of .readjustment ing metals, wood and other mate¬ new industry with the need for
which will turn out to be a pe- rials and new means of increasing thousands
of
additional
locker
riod of depression only if labor the* safety factor in air^ land and plants and a fantastic market for
leaders insist on continuing the sea transportation.
new
home
freezers
and
new
sort of chaotic policies they.have
In the lighting field, we have in equipment
for refrigeration in
.Phase
period of highlevel production marked by in¬
;
not assented
stamped coupons in order to receive
presently announced payment at the rate of $14.15
per $1,000 bond, and presentation of bonds with appur¬
tenant coupons for stamping, should be made at the
office of the correspondent of the undersigned in New
York City, Schroder Trust Company, Trust Depart¬
ment, 48 Wall Street, New York 5, N. Y., together
with an appropriate letter of transmittal.
Letters of
transmittal, and in the case of dollar bonds of the City
of Santiago and the Consolidated
Municipal Loan
copies of the Prospectus, may be obtained at the office
of said correspondent.
the
for
followed in the past year.
'
methods of treating,
proofing,
testing and strengthening fabrics
new
When
requesting letters of transmittal, kindly indicate
whether the letter of transmittal is to be used in
In the
connec¬
tion with the
presentation for payment of coupons which
have already been stamped, or in connection with the
presentation of bonds and coupons which have not
been so stamped.
In the latter case, kindly indicate
whether
or
not
the letter of transmittal is to be used
in
tendering bonds of the City of
Consolidated Municipal Loan.
CAJA AUTONOMA
DE AMORTIZACION
(Autonomous Institute
AUGlfStO MERINO S*
\
*
Santiago
or
/
Managet
Santiago, Chile, January IS, 1947
the
DE LA DEUDA PUBLICA
forthe Amortization of the Public Debt)-
more
i
near"
;
the
Decree
a
idle dreams
realities,
Chilean Consolidated Municipal Loan
increase the comfort it supplies.
We have
productive people.
Science has
brought all these from the stage
Chile, Mortgage Bank of Chile, Water Com¬
pany
its maintenance cost and
as
products*
which in turn means larger mar¬
for
more ; production
ami
better-fed and,
therefore, more
Notice to Holdersof Dollar Bonds of the Republic
people.
well
open up new, pos»
kets
with
Republic
nology has set the stage for a great terials and a host of materials and
economic upsurge.
What is in¬ processes" whichvwill ^extend the
volved in the revolution; in in¬ life of housing, lower its initial as
;
combination
products
and
processes,
as
insecticide bombs, new
•
bug killers, chemical weed killers,
new strains of seeds resistant to
various types of damage which in
the past have kept costs high, pre¬
cision; planting, and new crops
appear to
dustrial technology?
They
sibilities for improving the qual¬
ity and reducing the cost of W
wide; range
of
food
.
automobile,
In housing we have partial and
be justified
for it has been many years since complete prefabrication, pack¬
the basic factors have been as aged
kitchens - and bathrooms;
favorable for a great revival in more:* efficient and; cbmpacti heat*
initiative and enterprise, and tech¬ ing devices, new insulating ma¬
phase would
a
machines-
fungicides and fertilizers,
depth planters, pick-up
balers,
transplanting
machines,
mechanical pickers,
and flame
Iife^?more productive
and Anglicr; efficiency i for
hours
farm
new
cides,
healthful
an
fantastic
variable
min
tax reductions.
changes.
.
a
>
new machines for* planting pelletted seeds with built-in insecti¬
stifled business
initiative.
And
techniques, in sulfa, penicilr
finally we seem clearly to have lin and streptomycin, in new hear¬
ing relationships between prices emerged from a period which was ing aids, in germicidal lamps, in
and costs, and to correct the marked
by progressively higher the new optical devices and in the
many
maladjustments
which and steadily more burdensome electron microscope the new ma¬
had their origin in the abnormal taxation and now face the
pros¬ terials and techniques which open
conditions of-demand and sup¬ pect of successive and substantial up a vista of a longer and more
ply during the past few years
are
likely to
differ
widely
of
have in the vita¬
we
,
face
dustry of agriculture.: We have
wealth
and busses, household
In medicine
>
,
we
transformation in the ancient in¬
gadgets and .railroad; equipment.
decade
quired for the adjustment ne¬
cessary to restore normal work¬
costs
tenance
of
29|
...
ALBERTO CABERO,«
.
iV
f President''
fHE COMMERCIAL '& FINANCIAL CHRONICLE
292
Thursday, January 16, 194'7
—reduced aluminum prices Tn
Today's Economic Factors Facing Management
Hrains, the
•
(Continued from page 291)
the Threat of /Economic
Maturity
We have
new
cars
with- modern bearings and
Frequency modulation:.(raclid
v/crin >be Smade available to' our
people only by the expenditure
of'vast amounts for broadcast¬
industrial development
ing
for
it
short.
The
we
transmission
and
who
the
;
maturity
We ; have
h
the
of
lower
costs of
production,
intensive
have many years of
development ahead and our new
scientific frontier pales into rela¬
tive insignificance the
geographi¬
How ri¬
diculous it is to talk of over-sav¬
ing and/underinvestment when
industry is faced with the poten¬
of expansion inherent in
the technology of the* present,-nojt
to mention the promise of science
unleashed in the years ahead. The
tialities
unemployment in the '30s,
which many sincere but misguid¬
chronic
students
ed
assumed do
be
that
we
-experienced
following
1930, together with the anti-busi¬
policies so popular at that
time. There is a risk now that we
shall have a shortage of labor, of
ness
and of savings, < and/ it
clearly is time for us to reappraise
the policies of the past in terms of
capital
the new
potentialities of the fu¬
ture.
Technology Capable of Removing
the Threat of Under-Investment>
and Over-Saving
^Technology, furthermore, offers
hm avenue of escape from
two of
^
economic
dilemmas • with
we have been confronted.
the
which
The first; is lassitude Of investment
iri new facilities at a time when
large numbers of our
people were
Without; many of the commodities
commonly
associated with the
The
between the volume
of Investment and business well^
American standard of living.
connection
being is-an obvious one for when¬
ever
business expenditures for
new and improved facilities have
been low, business has been de¬
pressed, whereas by contrast, our
periods of prosperity have always
been marked by large - scale in¬
vestment expenditures.
It is not
significance that in the
late '20s when business was good
without
unemployment at an irre¬
ducible 4 minimum the volume of
new private
security arid mortgage issues averaged about $8.8
billions, while in the depressed
period, 1936-38, when we had an
average of almost eight millions
unemployed, the total of new se¬
curity and mortgage issues was
only, $1.3 billions per year. The
root cause
of our ; predicament
during the longest depression we
have ever known was clearly the
discouragement of private invest¬
ment by government; and now
jarid
may need as many as
tha
changed
so
accelerates
obsolescence,
and
a
will show how farreaching the change in investment
is likely to be:
few
figures
Our
railroads
mayhave
to
spend several billion dollars in
the
next decade
if they
take advantage of the new
weight
streamlined
are
to
light¬
passenger
a
when purchasing .power ?is
declining.
B usi
justifiably
fears that the prices Which now
have to be charged place many
/ increased
iron law of economics that people
cannot consume what they do not
produce no matter how high their
incomes happen to be.
Productivity -is admittedly low
and a recent survey suggests that
it is probably'from 70% to 90%
money
of
it
what
in
was
prewar
years.
Part of the decline in'efficiency is
'than half of
due to the feather-bedding which
ourJ
more
population,
<
.
like of bur labor union leaders ?are
-Because industry needs vastly
:from
to .1946
from
114,000 tons to
than 500,000, tons.
—reduced
magnesium
more
n e s s
Before television can be made
from; 27c
;
from
i
-
to
1944,1 while?
sumption was i n
7500%.
tire-mile
about
automobile
basis, tires cOst only
8.5%
much in 1039
as
as
{ they did in 1921.:
;
•
■
•
•
-
d
—r e
/abbut
u e e
d
;
rayon
three-quarters
yarn /
in
by
price,
While production was' increasing
11 times.
/-• ///
biles
housing,
and
automo¬
and / community facilities
tohich now awaits development.
i
/
Competition
2. Intense
long
we
shall
have
teoved /out/of: the conditiott of
Scarcity' Which has prevailed idUir '
Ing -The; war in many lines of
gdods, cut of i the period of irecfcrless
buying Without regard to;
quality or price, to a condition of.
relatively plentiful supply arid a
greater-; variety bf.. choice 'ambng.
qualities and prices'.of goods and
services—in short, from a sellers'
to- a buyers' market.. It is- -prob¬
able, therefore, that the post-read-:
-
-
,
feachpf rnbre arid
more
of oiir
people.
for 'thbse' who
them "and
Ohtstaiiding Characteristics of the
Post* Readjustment Period
Allowing
for^ the likelihood that
1947 may pe
supplies of electric
/power if it is to make full use
?bf the Automatic machines Vrtiich
-science has 'recently developed
/and because of increased use of
living ceases
power by the many electrical
features of the next few
years?; i
to rise. But our chief hope that
devices now regarded as stand
isardlbquipment for the home, it instead -of pricing ourselves out
1. A High Level of Production
has been estimated that it will of markets, we can price many
Once
we
have
successfully
'be necessary in the next five more ccanmodities into the -mass
passed Hhrbugh the readjustment
years-to expand central station market Ts found in technology for
period, we should iCrijoy- a pefibd
capacity by one-third —-which it is through technological im-; of
productive activity far surpass¬
would exceed any five year in¬ provements alone that real costs
ing the '30s, for not only doeaThe
are redufced.
*
crease on record.
/;
The- phenomenal -gro wth *bf technological revolution offer ? a
The cost of full *mechaniza*
sound basis for
;
goods of all descriptions
.The .pattern of rising consump¬
tion withTowerprices Was an. Out¬ j ustriient period. will be one of;
keen competition;
standing feature of' oiir economy
prior to 'the great depression Tana !: Supplementing the normal ten¬
the
technological revolution, in dencies in this; direction will. foe
the many; and^
vdilch/wenow 'find ouiselves
fersf the promise that we are at the technical devolpmerits which have
come
out of the war period, 1 to
beginning of a new perio4j"^eh
which reference has already been
American
industry
will bring
larger and, larger quantities: of made. " NeW Industries mean'heW
'T--tbe/
a
wider
and
wider
variety of
goods and services within the dblldi8 NriVr teChiilqUesj^^'riiStbtials
arid • methbds mean rieW: lew c'o^ts
a period of extensive
arid, in some cases,r painful readobjections to the risebf
labor -saving -equipment; and the j ustment iri prqductioriTaridpricesi
arid That, .fronr the/longer range
fevbr ^ ^strikes seems 4ikel#/td
subside when Congress has passed pbirit ^ Tvie^ ^ nre ln ^aHechi
hiore Treasonable Tabor legislation riological revolution, .whatA then
kre likely to -bfe the' outstanding
and when the cost of
already insisting that the unions
ket for
Before
."Could be twice as ;great/ZOr/ri
;
;
miljioris today/ These
statistics "give a rough'indication
of the solid and substantial -iriar-
tby
tires and tubes by two-thirds in
20 ; pears " so
that ^production
■
6^Milliotts-in 1935^ to
close to 25
con*
ere a s e d
—reduced prices of
'
prices
per pound 'to., 20^2C
1930
about
including
cease their
increased
take' advantage bf
price competition
new
foi* thbse who do not do
so.
Pres¬
aging a period TOf sharp competi¬
tion from Still another Uiredtioh ls
the
tendency apparent in
mrirty
|nstcinees"for business "coricferfts1 to
Wideix 'thbir fiblds ■ Of
^ehdedybrTiy v
entering iihes Of production, mer¬
chandising or service 'heretofore
tmtside?Their^pheresbf rictivitiOsf
|^iCh?mbririS that they ate^br ^Vill'
be,
new
competitors Of the old-
ime^cbriiprinies.^^ In sonie fieldsTbf
industry, the war period brought
an /expaftsiori/Of facilities /to !•?»
pbint "mUch' beyOrid anticipated
peacetime heeds "and doubtle^
present ambitious plans -call for
mere
expansion > in some, lines
than later demands will actually
long range expan¬ support. Moreover, it has been "a
American industry and the ac¬
tion of cotton farming is estiy
common
"experiehce "of
sion but American business has fairly
companying improvement in our
mated'at $50 per acre and since
Several vast Pew markets tb< de* Americah business, even where
Standard Of living to a point Where
we have oVer 20 million* acre$
excess capacity does not exist,/to
it is therenvy of the whole world velop in the immediate future.
of land devoted to cotton growThese
markets
are
the
result jfiridTthat^ the^^breqk^eVen1 point hris
is the result of one of the- most
l ing, it is obvious that a substanchiefly of wartime developments Hseri/i^teriallyi?above what It
tial ihvestmeht will be required; powerful chain reactions in eco-r —the deferred demands of con¬ tvas?
^yeairs ago./And firihll^
:
from technological
If we are to have full ^develop ~ nomics,- i.e.;
sumers
everywhere which accu¬ foreign competition can assuredly
improvement to lower costs—from
;|biettt fofitbe /airplane? transport
mulated during the war period; jbb^?ej^Octed to reassert itself . In
lower/costs to wider markets—On the whole, it appears
| industry we shall need in addi¬
the accelerated1 rate' bf family 'fbr- time.
from wider markets to mass pro-*
tion to large expenditures for
mation which provides a solid and |hat|ihe^pbst-readj Ustmeht period^/
iiuction—'from; mass i production-to
planes
and
groUhd
serving
Substantial market for housing arid Will/be' marked by rugged COhiStill lower costs -and from lower
equipment, an investment of
relatively, low
profit
furnishirigs I arid ebmhiunity -faci!- petition,
costs to still wider markets.
Our
perhaps*$2 billions in airports. !?
ities; arid the needs of great sec¬ mOrgihBiarid .a;high>ate of busi¬
economic history is 1 replete with
'/ Several
1 a r g e corporations
tions of the world not only for're¬ ness'mbrtalityi/iri^W^
have announced plans for 'colos¬ Examples of this progress > but T lief and rehabilitation
business risk may be. a much mofe
but, what
want to mention just a few. Amer¬
sal capital expenditures in the
is more important, to rebuild, to significaht * factor' than it was dur¬
ican productive enterprise, using
next few years; one expects to
improve, to extend arid to med- ing the period of easy wartiine
the methods of modern science to
spend i$2 billions in,that period;
brnize their productive 'faciiities. profit./// :Z////:"
supply -markets created by our
another $600 millions,
and a
Another circriiristariCe of great sig¬
3. A High Degree of InstaBiiity
-Considerable number of our merchandising genius:
nificance to the markets of the
—lowered the « average price bf future is the fact that millions of
larger corporations ; anticipate
It is probable that the highautomobiles from over $2,100 our
'that their capital expenditures
people who were completely levej activity which it is expected
in 1907 to "$565 for' a much bet¬
will be more than $100 millions
pr ^partially unemployed
during will; mark the post-readjustment
ter, a much more luxurious arid jthe depressed '30s were raised period will be accompanied by
each, and in numerous cases
a
much more efficient auto-'
?mbrelthan ?any comparable pe¬
ribruptly. to the middle ittcPrtie economic instability to an im¬
-mobile in 1940, with The result blass
riod dn their history.
during the war years. These portant degree. Some of fhe-mar.
.
•
by
Expenditures
,
take
of the
care
developments,
offset
to
new
industry
to
technological
expenditures
obsolescence!
during ?thfe waij
plus
deferred
•arid maintenance
when added to plant ex-*
peiiditures by municipalities and
by individuals for housing facil¬
ities, are capable of raising total
investment
expenditures
to
an
average level; of many times what
they were in the depressed '30s
and perhaps even as high as two
times what they were in the pros¬
perous '20s.
Thus if business in¬
years,
attitudes have
dramatically for the
better, it is likely that industry
will make colossal investments in itiative is free to make full use of
order to apply commercially the the
opportunities for expanding
wide range of developments which markets and
lowering costs which
technology now offers. Technol¬
technology now offers it seems
ogy lowers costs and widens mar¬ likely that we will no longer have
kets, creates new industries and reason to fear that under-invest"political
that
;
3,000
is quite large.
our
terprise of a deflation as serious as
facilities
,
cal frontier of the past.
permanent lot, was but a reflec¬
tion of the deadening effect on en¬
at
vast expend¬ Some -of the unions have forced
itures
will
be
required / for upon industry, > part bf it is due tp
transmission and broadcasting $>nattiral Ictido^h after theembfacilities, and coaxial cables iioiidl ' Stresses ftrid 'long hours Of
alone may involve an invest¬ war, and part of it is due to sol¬
ment of close to $1 billion.
diering dn the job for which there
r
/ Because U large proportion of is hoPxeuse,"but the prime factor
'the housing construction which responsible :for it 'is probably'the
Successive Waves of strikes which
now is planned will be on "raw,"
undeveloped property, an in¬ have brought many interruptions
vestment by municipalities of in the flow of materials and pre
close to $1,000 per house will be vented the assembly lines 'from
necessary for roadways, school jnoViti'g/alorig evenly. 'It Is .prob¬
facilities and 'other community able that in time most bf these
services,
and with
housing factors Will be corrected, for it is
that
American
scheduled *at about
1,000,000 inconceivable
units per year for some time labor Will, for long, soldier On- the
ahead the required investment job; some of the more statesman
from the die-hard
we
-
been-estimated
Available to
heard
pessimists. With
so many new industries and new
markets for old goods as a result
nomic
has
such broadcasting stations.
sham¬
silly'talk of eco¬
fabts of technology make a
bles of'all
incomes
period Z 1930
24c per*pound to T5c per* pound,
in which period production was
•
rising
articles beyond the reach of the
possible to teduce:} rea
costs, increase 'speed / and im¬ hiass markets 'and thisrcohdition
prove the * safety y of railroac. prevails, primarily because labor
transportation.
efficiency is so low—it being the
:
in this hew phase of
would sell this nation
time
in
-
/make it
the ultimate; answer to those
American
light-weight yfreigh:
the hew signal and radio com¬
munication systems all of which
long after the temporary postwar
demands have been forgotten.
technology 'Capable bf iteihoving
motive power
new
the
industries ctnd new possibilities of
Expanding old industries by re¬
ducing costs to the consumer will
provide a basis for keeping our
business operating at a high level
involved
the
-
ment and
over-savings will act
as
that the number of cars in oper¬
ation increased from 140,0001tb
a considerable jkets to which reference has bemi
cash, deposits and 'War made are more er less temporary.
jBonds, in addition to a better For example, the deferred con—reduced the average retail prospect? bf : employment Than they sUmbti6n" demands, resulting .'from
price of household electric re¬ had in any peacetime year since the war and the foreign relief and
frigerators from $350 in 1927 the early '30s; hence they are in a rehabilitation requirements will
When 375,000 were sold, to $155 ppsitiori'tq' -trariSfbrrii their; Wants eventually /decline, in
importance.
in 1941 with the number sold into effective demand in the imar- For /a while, business, concerns
kets of the country. Such demands will make heavy capital expendi¬
increasing to 3,500,000.
—reduced
radio « prices from are not likely to become effective tures,, as will individuals, and state
an
average of $127 per set in until the cost-price readjustments and " local .governments, but these
T934 to $40 in 1941, while the bf the bext feW moriths have been Expenditures ; are likely to
/vbiy
^number of ^sets sold increased completed, 8 but they are large Considerably frbm ?yeat to year.
from One million to over 13 mil- jenough to justify ari optimistic ap¬ 1
Furtherriio^ /the /Goveimirierif/
our
economy,-,
-
-
.
*'
,!,f
Mass Markets."
The ; second
which
we
are
•
,
—reduced
the
'
,
average
tiriit
delemma
with
faced today is that
praisal
the
of
outlook./
price of household electric iron-- that;
ers
from $150 in 1925 to
abotit
$50
in T941 and increased the
number sold by six and one-half
times.
*
v
,
//Reduced j the/
average
unit
price of electric washers by al¬
most
Durable Goods Out of the
"
lion.
'
a
half from
1922
to
1941
(
Technology Capable of Removing
the Threat of "Pricing Consumers'
stake in
■
powerfur deflationary force in
a
people now have
27,400,000.
While 'the number sold was in¬
since"-1940,'our. total
lation
the
post-readjustment
been estimated
It/has
hbs
increased -XI
number
of
new
popu¬
millions,
families
has
expanded
probably add to
.in
times. '
the-
our
Although
economy: at
the theoretical
objective of "compensatory fiscal
policies" is to offset fluctuations
an
private investment and busi¬
by over four millions,
approximately 3.5 million families ness activity, in practice political
have migrated fromv one place to considerations often
transcend eco¬
another, and 12 million more peo¬ nomic considerations as the de¬
ple
are
employed at
increase in
an
average
weekly earnings'close
creased by almost five times, / ' to j 70 %-.y: The v impact
of these
—reduced the average retail changes
on
family
purchasing
price
of
incandescent
lamps power is significant, and the num'•from 39c in 1921'to 17.6c in 1941
aer of families and single Spend¬
and increased the number sold ing units
with annual incomes
approximately five-fold.
"• over $2,000, has been raised from
;
itself will
instability
termining 'influence/in
ment
Govern¬
expenditures and tax poli¬
cies.
Moreover, tax policy is likely
to have a disturbing effect. It
is
a cumbersome control
device, for
the effects of
a
tax
On
increase
on-business
are
tax reduction
the
budget
likely to be
or
a
and
con-
165
.Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4560
siderably delayed beyond the eco¬
nomic need for such action. In the
field
debt
of
geared
the
ob¬
of keeping interest rates
likely to become increas¬
ingly inconsistent with the Fed¬
of, business for many in¬
dustries will be considerably
is
above that of the '30s, some of
the highly optimistic forecasts
■
eral Reserve Board's duty to curb
3.
Financial
should
which
be too little or too much.
.
Inventory
more likely to be a
making for instability than
one making for
stability, and with
the high level of Government ex¬
to
penditures
which
fluctuations
in
seems
receipts
likely to
in
policy* too, influenced
in individual
commodities
than
general
It
it is by waves of speculative
optimism and pessimism, and by
frequent changes in the interna¬
conditions
is
of
to
the
as¬
inflation.
dangerous to expand in-
g: yentories unduly in periods of
inflation because the gain when
as
prices
rising is less than the
when
prices collapse:
The times suggest that it will
be better for business in
are
losses
tional
outlook, is likely to add to
the
instability
which
probably
will mark the
post-readjustment
to
general
stay in the business of pro¬
ducing
years.
as
efficiently and sell-;
4. A Higher Level of Prices
;
Inflation is an active force in
our markets and in a
long range,
„
over-all
sense
provides support
for the general level of
prices'—
that is, the average of
commodity,
real property and
security prices
as
well
as
Will
cede
tual post-war peak in
owed.
a
part
loan
large amount of dollars in
settlement
of
the
amount
The proceeds of the dollar
are
dwindling rapidly, owing
substantially
to the adverse balance on
trade
with the United States. And Brit¬
ain can, in such
above that of the pre-period. We
have in organized labor a power¬
afford to spare
large amounts for
the
purpose
of
likely
to
remain
ful agency for holding
wages high.
And the monetary structure was
greatly
so
expanded
during the
war that it seems
likely to stand
as
a barrier to
deflation, if not
an active factor
making for in¬
flation. In fact, the policy of com¬
pensatory spending by the Gov¬
ernment vis inflationary
irt/ its
longer-range
implications
for,
while under actual practice we
get heavy deficits in emergency
periods, there is little or nothing
In the way of surpluses in good
times.
rtinder, current
be
conditions,
surprising if
we
it
failed
to have quite wide fluctuations in
the broader price indexes as well
as
in the prices of individual com¬
modities, bill* the general level of
prices; seems likely, on the aver¬
age, to remain substantially above
that of the prewar years.
5. A Rising Trend of Interest
Rates
The post-readjustment period is
likely to be marked by a shift
from a buyers' market for credit,
which has
lasted almost
now
12
years, to a sellers' market for long
as well as short-term accommoda¬
tion. With savings likely to be re¬
from the levels of war¬
duced
time—when, they
and
of
stalked
were
forcedfear
depression—when
the
land—and
with
the
demand for credit in the form of
new
security flotations by mu¬
nicipalities and business corpora¬
tions. likely to be substantial, the
; trend of interest rates should be
moderately upward with credit
terms less liberal than they were
when the demand for credit
was
light and the Federal Reserve was
flooding the banks with unlendable funds as an anti-deflationary
measure.
V-
circumstances, ill
facilitating the
settlement of her debt to India.
Nor is the outlook for
;YV.
^
'
,
suggestion, I think, that business
should adapt its policies to near
term caution and' long-term
op
timism. While conditions will show
variances
ing
between
observations
,,
The prime objective should be
the achievement of a low cost
would
This is the
of securities.
ing
salesmen
ers'
with
page
would
Argentine,
agreement
and
to
come
does
is
terms
been
even
and
has
that
largely
provisional
provide the final
not
solution.
.
It is necessary to envisage the
probability of no debt funding
agreements being reached by July,
If the absence of agreements is
due to the refusal of the creditors
to make reasonable concessions
then Britain cannot be accused of
271)
be followed by
proceeds
used
pace at
of. the
the
which, .the
.
dollar
loan
can
derive
Britain
up.
year
accel¬
are
no
conceivable advantage from the
unilateral convertibility of ster¬
ling,
will
and
have
to bear the
The question is,
how long will Britain be able to
bear that burden.
full burden of it.
of financial
case
of some
under-estimate
or
If
matters.
"
(2) The careful investor. Knows securities, buys for income
price appreciation. Interested in establishing financial inde¬
pendence at some later date. - ' <'
•
-/ .
•
(3) The larger investor who has tax problems, primarily con¬
cerned with preservation of principal.
Knows securities and is well;
versed in monetary and financial matters.
v.
(4) The smaller investor having from $25,000 to $50,000 and
concerned with1 income and preservation : of principal.
Not inter-;
ested in speculations,
■
'•
•
(5) The younger professional; or business ;man, not too well
ex¬
surpluses
to
soft
and
ain began to experience
an
acute
shortage of dollars.
-
.
versed in financial matters.
Keen
of
trade, with its
port
successful in doing business with them.
and
to
trend
'
Has
some excess
income that he wants-
invest.
Hopes for financial rewards through price appreciation.
mind, willing to learn, will accept financial guidance if he
believes in you.
'
*
'
f
'
'
'
•
•
have
(This
in
romance
a
Britain is not likely to allow its
holdings todwindle to a
one we
will leave to
your own
later you are going to run
into a case like this and you had better
else duck out the back door.) There are
major classifications of security buyers and
of them needs to be sized up, classified and then handled
to handle
know how
it
or
each
one
properly.
dangerous extent without taking
steps to check the process. A solu¬
a
non-dividend paying speculative stocky
heavily weighted with risk, but with compensatory profit possibil¬
ities, to ^someone who was interested in conservatism and incomA.
You vtouldn't talk; the same language with, the investor that you
would with the speculator.
This is. academic.
The best accounts
are those who know what you are trying to accomplish for thenC
Selling securities is hot the same sort of job as selling a washing
machine or a suit of clothes.
Only when you and your customer
UNDERSTAND
EACH
OTHER,
TRUST
EACH OTHER,
AND
tion would be' to make
use of the
facilities
of
the
International
Monetary Fund.
Those facilities,
however, • are very costly, and
would provide a
solution, since
to be repaid
purely temporary
they would have
later.
sooner or
The
You
\
-
wouldn't
-
offer
only alternative will then be to
WORK TOGETHER TO ACCOMPLISH YOUR
suspend the convertibility of ster¬
ling. This would not be a viola¬
WHICH IS ASSISTING YOUR CUSTOMER TO ACHIEVE HIS OB¬
tion
of
the
.
terms
of
the
Loan
restoration
MAIN
JECTIVE, WHATEVER IT MAY BE, WILL YOU
SECURITIES THE WAY THEY SHOULD BE SOLD,
you
will also achieve
a
Airline Foods Corporation—Common
^Prospectus
on
request
Herrick,Waddell & Co., Inc.
55 LIBERTY STREET, NEW YORK 5, N. Y.
;
^
convertibility
of
sterling
would, be an experiment that
would have to be abandoned be¬
fore very
long.
American Fruit
Official circles in
London
Government,
on
The
the other
hand, will be unable to
convert
ration
are
of
well
the
sterling approaches they will
Fullerton
Oil Co., Com.
no
.doubt
the United. States
countries because - their
this.
of
of British export
currency
of
convertibility
.
into hard currencies the proceeds
surpluses to soft
aware
Growers Inc.,
Arden Farms Co., Pfd. & Com»
And when the date for the resto¬
Britain.
to
endeavour
to
obtain
from
Government
extension of the time
limit,
t,
1
*
t
vir,' /
r
''V-.-'j
ible.
It
fore;
alternative to
a
*26 SO. SPRING ST.
: :
purely temporary
convertibility that would
,
seems
that
highly probably, there¬
a Restoration
of
the
the chances of
ration of
a
TRINITY 57*2
LOS ANGELES 14 \.
^
Teletype1 LA *i
remove
permanent resto¬
convertibility.
r
Member* ho* Angelea Btock Exchange
as an
,
1
,
'
***'':
Wagenselter 6 Durst, Inc.
an
'
currencies will remain inconvert¬
SELLING
On this basis*
highly profitable sales volume.
the
hasten to avail themselves of the
OBJECTIVE,
BE
Mary Lee Candies, Inc.—Common
of
right to convert into hard
surpluses
'
with
.
cur¬
;
some money—may wish,
her1 financial operations:
better judgment, but sooner or
conjunction
dollar
premature
large frozen sterling balances will
-
(6) The dizzy widow who has inherited
other variations of these
it would be techni¬
The countries which have
custom¬
question at; the right time. Once you acquire this faculty you can
man's financial capacity in a few minutes, c
v ♦
Here are a few. of the different classifications of securities buy¬
ers and each one of them, should be approached from a different
the
,
to be binding the moment Britain
cally possible for Britain to re¬ has
exhausted her dollar reserves
store convertibility for the benefit
and facilities.
But long before
of current transactions alone.
that stage is reached, the chances
Such a limited convertibility are that the British Government
would be far from inspiring the would consider itself
morally jus¬
degree of confidence" required for tified in suspending the converti¬
assuring the success; of the new bility of sterling, in order to check
system,; Even though sterling is the drain on its dollar resources.
grossly
undervalued,
London
It
seems
therefore
probable
would fail to attract overseas de¬
that a
posits.
securities
their
you
size up a
Owing to the
one-sidedness
of
British foreign
having failed to comply with Ar¬ Agreement. Under it
Britain gave
ticle 10 of the Washington Agree¬
an undertaking to restore conver¬
ment.
The question is, will it
tibility /within 12 months, after re¬
then be possible to find a
way in
ceiving the loan. There is ho pror
which sterling could be made con¬
vision
compelling the mainte¬
vertible even in the absence of
nance of the convertibility
•pnee
agreements? The: sterling balan¬
restored. < And even if ther£'Were
ces could
be freezed altogether,
such a provision, it would{tease
in which
r
(1) The speculator, interested primarily in quick turns, knows
will buy anything if he believes it is going up.
eration ; of the
,
ain has
failing
common
over-estimate
either
to
understanding
to
largest creditors. So far the only
creditor country with which Brit¬
1
little about values,
convertibility of sterling this
it would be •Countries
tial reduction of the British debt.
And the smaller creditor nations
will take their lead from the two
1
■
-
import- surpluses
politically difficult for the Gov¬ from hard currency countries, it
ernment to consent to a substan-. will not be
very .long before Brit¬
as in India
"
,
important consideration that must be
carefully which is particularly associated with the sell¬
over-estimate you
respect to one's
^..competitors.- In a period of are quite likely to talk over the head of your listener. This causes
confusion in his mind, establishes doubts, and creates a handicap
broad technological
progress it
c"
is incumbent on every business in accomplishing a close relationship.
The other extreme is where
; to see that it
achieves the high¬ a salesman holds such a low opinion of his prospect's knowledge of
economics that he tends to gloss over the essential facts when he is
est standards of
efficiency and
the lowest possible costs of
telling his story, or over-simplifies and ends up by making a very
proineffective impression. • 'W'0^ :M. W
' ■ •
>=.
*
§1 duction and; distribution. The
The best salesmen are first of all good listeners. You learn
I low-cost concerns should be the
ones which
profit handsomely many things about another person if you can train yourself to listen,
in the good years ahead and carefull to the things HE SAYS. If you want to know the kind
of securities a man buys let him talk for a while.
You will soon
survive the depressions.
find out whether he is an investor or a gambler.
Keep him talking
and you can determine whether he knows much or little about
securities.
A skillful listener is one who knows /how to inject a
position
,1
Egypt,
He finds out where he is going
- j
But there is another very
currency
In
com
industries, the follow
general
appear to be pertinent:
:
port
picture
panies and
4.
1
rencies the proceeds of their ex¬
.
vv^vy
Business Policy
of the
general
shape of economic things to come
marked
settle¬
Egypt's holding of blocked
sterling,
amounting
t o v s o m e
£400,000,000 any too favorable.
British
This
a
ment of
the
would
evaluated
(Cointinued from
that, whatever may happen in the
readjustment phase—and the ac¬
commodity
prices may be reached in the near
future—the general level of prices
in the years .that follow seems
He sidesteps politics and religion.
before he makes his moves.
,
-
direction if you would be
The inflationary
still so powerful
are
re¬
Sterling Be Made
wages.
pressures
and demand
ahead,
that financial policies be con¬
,,v
quite erratic and
sumption
whole.
\ Business
the
the supply
servative.
are
it will be far better for inven¬
penditures will tend to have a
magnified effect on the economy
as a
be
have
concerns
i Every salesman has his own way of doing things, but if you will
will find out that certain fundamental principles are
all good salesmen.
Not the least of these necessary rules
is the ability to refrain from jumping to hasty conclusions.
A com¬
petent salesman sizes up his prospects carefully.
He doesn't under¬
estimate their buying capacity. \ He is careful not to make any per¬
sonal remarks that can be misconstrued.
He tactfully avoids men¬
tion of mutual acquaintances unless he has a clear mandate to do so.
,
check up you
followed by
advice all of the
time, but par¬
ticularly for the period
be
Price
tory policy to be closely geared
to
ex¬
and
indispensable. We face
probably a significant change
should
conservative.
fluctuations in commodities
likely,
and
policies
many
By JOHN DUTTON
policies
lationships for credit. It is good
reasonably
factor
credit
conservative
found
us
t programs are geared.
ment is thus
and
be
closely adjusted to the sort of
long range financial budgeting
,v
re-examine the basic estimates
to which sales and production
then in the other, it is likely to be
£
proved to be costly.
face.
It will be well for
Securities Salesman's Corner
inventory specula¬
generally
has
which
hardly to be justified by
the conditions we may have to
poorly timed, and it is likely to
Govern¬
to
business of
seem
speculation and to prevent infla¬
tion. Government policy is likely
to err first in one direction and
aggressively as possible
avoid going into the
as
tion
very
ume
jective
low
ing
:and
postwar markets. While the vol¬
Govern¬
ment's frequently announced
to
■
careful, thor¬
ough and skeptical analysis of
.
managementand
policy,
monetary
Production schedules should be
.
293
Mavfta# Q«ot«ftow and litforiMtioii em all Califorala
[THE COMMERCIAL & FINANCIAL CHRONICLE
2. But the position of the^textile-
AmericanBusiness in 1^47
(; (Continued fro^ page 271)
invitation to
happened in 1929-32 was
,
that
distortions
obvious
tion is this: Can
are
to
prevent
from
contribute
'1
anything happen
the coming setback
having the proportions of at
least a decline?
As I told you, there were many
observers
who
welcomed
the
greater weekly, and to
by unsound business
operations to a later condition
that we should all seek to avoid.
growing
will
apparel industries is
ating :tod
keep it going longer for
items
In these terms, the next ques¬
thing will be all right, to ignore
the
de¬
a
pression.
that every¬
assume
size
than
for
others.
will
have
to
get
boom
will be
it ends, there
When
business
a
recession dur¬
ing which prices and total produc¬
tion will: decline while excess in¬
ventories are being liquidated.
V..
There is
no
need for
whether inventories
at the
to argue
us
too high
are
moment; sooner or later, if
the keep on going
they will
anything,
then, that can stop them; from
:
going on up except a decline in
production and prices?
be
too
high.
Is
up,
there
I have heard all sorts of argu¬
ments in the last few months that
attempt to explain why additions
to business inventories in 1946 of
approximately $9,5 billion dollars
excessive.
should not be regarded as a dan¬
to act
ger signal.
1.
as
Even if it could
a
unit in such
agree
worthy
risk of
a
effort, it would run the
prosecution under the anti-trust
say thdt the gain is
chiefly jm dollar yalue^ because; of
higher prices, rather than in units.
Some
laws by doing so.
Is it reasonable
to
argument had an relevance, then
believe, I ask you, that individ¬
ual companies will reduce their
own
output at the expense of
dollar
their
Let's pass that over
•
value
multiplied
of
lightly; if the
stocks
by two
or
could
ten
be
or
relation
stocks
to
I
see no
escape
from it: We
inventory boom
We will just as surely have
dries
a
on
possible that retailers will
a decision on manufac¬
sale until three
•
a
actually to take place?
Ob¬
viously not. He keeps on produc¬
ing. If^ the test fails, a further
surplus has already been created.
Perhaps the large accumulated
demand for
are
no
remembers
one
much
A decline is
With
a
fhbre $erious^As
broken leg, the patient is
new
homes, automo¬
major appliances will
decline from being more
and
dip?
I doubt it.
demands
Accumu¬
be
must
analyzed
according to their two phases.
The first phase is what might
be called the frantic fringe and
consists of a group that will come
in and buy a given commodity at
any price.
The
second
phase involves
the rest of the
cumulated
demand
during the
that
war
all
ac¬
;
against
;
paying
them, and who
will wait until they can
get the
item they want; at a reasonable
price before they make their pur¬
chases.
These two phases of demand are
present to a greater or lesser de¬
gree for many items.
The need
men's
clothing
and
many
staple
textile items.
go
a
whether
the
or
die; and
good solid backlog of replacement
even
never
be
the
patient will live
It
In
all of these items
frantic
fringe
and
there is
there
is
a
if he lives he may
demand.
same
kept the current boom going and
again.
What
it is.
stimulation
of
business
will do more for con¬
sumers' goods markets than abor¬
chasing
I
do
But when I
of
The
frantic
fringe
has
power
know
the
by tax legislation.
this:
relation
that
purchases: and
thirties.
[ capital
is at least
Where
In
a
na¬
In
the
earlier
period;
•
investment
was at a higher
level and increased more rapidly
with
gains in gross national pro¬
was the case during
the thirties. I cannot prove that
the less favorable pattern of the
later period was due entirely to
duction than
adverse
psychology or that this
psychology was induced
entirely
by
political
consider¬
ations. I do believe, however, that
in the 3 to 5 years following 1948
.adverse
business in¬
see
What theNew
approximately $36
end, stocks that
What
cover.
gross
product shows a different
pattern in the twenties than in the
study of others. I have
by the extent to
businessmen
sometime^
lose
in
confidence
their
judgment.
Time
own
'
after
time
I
y
have
seen
highly
some
surprise.
Conclusions
.
I
hope
I
have
convinced
you
that the recession in business
tivity sometime this
than
more
a
depression.
The
ac¬
will be
dip but not a major
year
-
-.
outlook
is
by no means
frightening. But it is by no means
so placid that
you can afford to
accept at its face value the op¬
timism
In
so
-
glibly
expressed
in
year-end forecasts.
many
particular, the belief that
everything will be all right if we
all get together and produce is
a
-
dangerous
won't
be
all
Everything
prices
one.
right
until
have, been brought down and
po¬
tentials consumption
on
a
unit
basis has been raised.
Bringing-
prices down is bound to be pain¬
ful and costly; don't
expect it not
to be. :.r /
; - •-
Many, opportunities lie ahead
be
fully exploited
.
that' cannot
until prices and production have
passed' through
readjustment.
their
period
of
is coming next,
1947, is not a dip; it
good-sized decline.
Optimism Is
Justified
respects 1947 will be
quite similar to 1920. To that ex¬
many
Congress
Means to the Investor
rising at a rate of be¬
$12 and $18 billion a year,
gentlemen, I want to run
then,
study
capital
tional
still
tween
a
between
billion at the year
(Continued from page 268)
elections of last November, not be¬
fore.
Restoring the efficiency, the
productivity of Labor?—that, of
course,
is something, it would
seem, which will almost automa¬
tically follow, surely even though
perhaps slowly, the cleaning up
country a hundred million manhours of productive labor at a
time when production was the
country's crying need. That, we
believe, is out—out for the simple,
justified.
However, there are also im¬
portant differences. Chief of these
of the situation at
is the fact
the top level.
Taking orders to do a sloppy job
from leaders plainly able to dic¬
that last November, the
people of this country went to the
polls and said that they would
have no more of it, that it had to
stop. Very seldom does Mr. John
Q. Citizen, en masse, get on his
tate
hind
tent
I
believe
that
pessimism
is
that, although the agri¬
thing.
distorted
now
shorn
there
Federal supports under
are
than
it
was
then,
farm prices that will prevent the
coming
decline
sharp
it
frome
being
as
in 1920, when cot¬
ton .dropped from 42 cents to 8
as
was
cents
a
pound
within
a
few
months, and wheat declined from
almost 2 dollars & bushel in 1920
men
even
more
for optimism*
thelevelof^ ecdnomid: activity*
overlay a 5 to 10 year period* *'
The condition of the textile ap¬
industries, on the other
hand, is highly important in es¬
tablishing the timing of the cycli¬
cal changes in business < activity
parel
that
are
a
basic feature
their
power
themselves.
f(J"
of
our
legs and say that he wants
something, but when he does he
gets it What kind of a Democracy
(rule by the people) would it be
if he didn't?
So, when
have
seen
about business in
1947
ifs—if pro¬
legislation is enacted, if strikes
averted, if this,,; if that. Such
predictions
ever
it
or
forecasts
or.
what¬
you want to call them are, so
seems
to us, a^e
like predictions
we say
that
we
think
1947 is
are
and
we
is conditional—fulbof
-
It has been
my experience that the positiortof
the
capital goods industries is
highly important in determining
room
or
Practically every prediction
are
find
one
in that kind|of thing and
nobody knows it better than the
ing to look beyond* the coming
can
is
reason
ment
per
we
government
Taking them from leaders
constantly
to get shorter hours and higher
wages practicallyM will, is some¬
thing else. There's no furnish-
More important, if we are will¬
decline,
the
to
cultural price structure is no less
or
going to be a big year, we
willing to lay it on the line
s$y it without any ands, ifs
buts.
are
The rocks and the shoals
still
ahead,
as
they always
are
and always will be, but the
how is: being rim
ship]
by-people Whci
<kn6w hbw torun itand who are
hot; lnterestod in experimenting to
see how close they can shave
by
each reef and ledge without actu¬
that, it will be clea# torxtorrdw. if
it doesn't rain. Is^going to rain? ally taking the bottom out of the
beacon is a
—that's- the poin$§or, to. come >boai; ^:thi&^
beacon and h buoy is^k buoy-rhot
back to the subjeet^nder discusthe inventloh 'of some "reaction-*'
sionjl have we agabt got a;lot of
labor
troubles
and ..paralysing &ry" bent/only on toking-aiLthe
C
strikes just ahead ol ua?Tobring ; joy out of the ride* *
This isn't going to be a bad
the matter down to brass; tacks;
year,
cabor cannot Congress;Mndle the* this 1947. In financial history it is
labor situation; with which ;it is going to go down as the year in,'
,
.
.
which, after a long,; long time*
Congress can, and, we believe, things began .to get; back: to nor-,
t.
this;
will. Whafc-no more strikes?; Oh/ mal,
l. The position of the: capital and : yes, there'll be strikes here~ and v A time when things are getting]
durable goods industries is too there,' but no more ofJ these 'gen¬ back - to ^normal' after a^big dis¬
strong to allow a repetition of eral work stoppages in essential turbance is apt to: be a good .time
1929-32 at the present time.
industries which, ijt l946, cost the to buy stocks.
faced?
economy.
At
A depression is worst of all.
is really bad. It's touch and
•
forecaster, and have made
shocked
are
period, to 1.05 dollars in 1922*
but consists of a group of people
who cannot afford to pay urnlimited
prices,
or
who
rebel
really laid up; he knows some¬
thing hit him. He gets over it in for homes, new automobiles and
due time, and the leg
may be refrigerators has been widely pub¬
stronger than ever;, but he never licized. There is also an accumu
forgets it. Nor have most busi¬ lated demand for such items as
nessmen forgotten the declines in
.1920-21 and 1937.-38*
.
.
times*
about the dips we had in 1924 and
1927.
manufacturer
that any¬
only 110%
higher. You may argue that this
value figure is too high and maybe
sometime in
the
stop production and wait for the
sneezes, and gets over it. No one
-remembers:, the colds: they've had,
:j and
after taxes
ments
for
Does
test
Decline,
*
a
belief
them¬
,
level?
depres¬
few
forced to take
the outcome of the test
the
with
are
on
comforted
thing not wanted by the domestic
could be shipped abroad;
they would be far better off sim¬
ply not to produce these surpluses
in the first place.
i
I am shacked by the size of
present distortions. As compared
with j 1939,
production is
67%
higher and wholesale prices are
82% higher. Multiplying units by
price suggests a value of supply
203% higher, while income pay¬
being favorable. Meanwhile, what
happens
at
the
manufacturing
know it was happening.
with the^ common Cold; the
sniffles
selves
manufacturers
many
trade
ventories
chance
hardly
patient
four months
or
thinking. I am particu¬
disturbed because I have
The retailer is
Let's avoid confusion by getting
terms straight.
A dip is so small that
you would
As
that
prices
Many of these goods are
being purchased at higher prices,
not yet tested at the retail level.
our
<
to
later.
Or a Depression?
.....
that
do
Absolutely not.
The retailer is
already takjng heavy markdowns
or* poor quality and over priced
items, but he is still buying goods
that he hopes will sell.
What is
worse, he must in many cases buy
goods now that will not be placed
:J
Dip,
I
continue
turers before much harm is done?
but whether it will
a
as
will
force such
our
Will It Be
well
as
up.
Is it
a
sion.
themselves
produce at top speed until demand
than
a
convince
know
lated
or
sist
who
keep
decline,
The
activity
so
liquidation later—some¬
year.
The question is
longer whether there will be
a
businessman will
talked to
a pe¬
dip,
American
gent
refuse to do-—to place heavy com¬
mitments far in advance while
recently,
biles
a
close
are
goods
now.
recession,
also
the
toward
social 'objectives.
that domestic pur¬ than
doing, and become Proponents of the latter will ar¬
more cautious as prices advance.
gue that the social objectives were
And it would be surprising in¬ also economic ones—to broaden
deed if foreign buyers actually did the market for consumers' goods.
this year what the more intelli¬ Proponents of the forever will in¬
chasers
larly
this
be
atmosphere
consideration.
that
thing
same
of
of
a
some
Congress is
now Republican will
be encour¬
aging to most businessmen. Psy¬
chology is a queer, thing, but tre¬
mendously important. I have no
wishful
time
•
political
fact
mere
through some ex¬
during my
business cycles
as a
been
tive attempts to redistribute
pur¬
riod
no
other manufactur¬
manufactureres
are
an
a
tem¬
are declining.
Hopes that surpluses can be dis¬
posed of in foreing markets are
You
rising
sharply, God help us when the
producer is able to finish up his
.unfinished stocks and really be¬
gins shipping.
having
The
deserves
when the products of other man¬
ufacturers
are
being -refused?
s
retailers'
few
a
a
treme
life
which
that the superiority of their prod¬
uct will assure its market even
shipments and sales* To which I
answer that the danger is not now
but later. A sustained high level
ofmanufacturers' sales at high
prices merely means in many
cases that buyers have been over¬
buying.. A sustained high level, of
manufacturers' shipments merely
means that goods are being trans¬
ferred: from their possession' to
someone else's. Moreover, there is
nothing
that
can
change
so
quickly as the ratio between stocks
and sales or betweens stocks and
shipments. When the turn comes,
sales and shipments will drop off
•morev quickly^ than .production,
and ratios will sky-rocket.
3. Some say stocks are high be¬
cause they contain so
many semi¬
finished items. To them I say: At
least be consistent; if shipments
are already -at record-■ levels de¬
spite the lack of some parts, Ond
?if
for Mbre than
longer without
porary recession.-
companies
2. Some say that stocks are still
in
I have lived
to
continue to operate at a high
rate?
Or
will
most
individual
demand is steadily reduced*
normal
while
stock¬
ers
What happens, of courses; is that
shipments and sales are inflated
by the same price factor, and unit
below
employees and
own
holders
a
a*hundred and still not be too high.
;v
activity
will be
T''*
£
intelligent
businessmen
would make businessmen more
take a position about the outlook;
Possibly
a
decline
can
be
cautious and prevent a sharp de¬ avoided by
become discouraged if what they
shipments to foreign
cline in business activity later, 1 markets? We have heard so much
expected did not happen imme¬
doubt that a Republican Congress
hope these observers are. correct about the needs for industrial
diately; and reverse themselves at
could repeat many^f the acts of
in their optimism.
If they are* supplies, machinery and consumer
precisely the wrong time.
the New Deal Congress without
then
no
businessman- will find goods in Europe and
Don't be deceived if public psy-r
Asia; surely them
having the same effects on
himself in an over-extended po¬
chology becomes over-optimistic
any excesses produced here next
business sentiment*
sition
at
the
wrong time;
far- year can be shipped abroad.
ignore it. Public; sentiment; is
sighted manufacturers will begin
This
line
of
However, I count not only - on seldom? s& wrong* as when it &
reasoning
also
to curtail production before sup¬ seems highly unrealistic.
the psychology factor but on tan¬ unanimous.
People could hardly
Anyone
plies have piled upl and we shall who reads the foreign press knows gible pbliticaT developments. Re¬ have been more completely con¬
have a dip sometime next year that for some months past
gardless of partiel, .there is no vinced than they were in 1929 that
British,
rather than a decline. Something
Canadian, Swedish, Russian and doubt that taxes will now begin prosperity would be everlasting;
warns me, however, that it is not
other foreign observers have been a;t decline
from
the emergency or than they were in 1932 that
going to work out this way.
talking about a coming decline in levels of the war period. .The Re¬ depression would be permanent.]
First of all, no industry is go¬
It is always the man in the
prices in the United States.
It publican CongressJs more likely
ing to act as a unit ip reducing would be surprising indeed if for¬ to orient tax policies toward the middle of the herd who is worst
production before supplies become eign purchasers did not do the stimulation of business activity hurt when it is stampeded by-
in¬
continue
cannot
that
definitely.
business
months
new homes. Soon¬
later it will be exhausted;
manufacturers
allow
continue
frigerators, and
prices down, and retailers will
logic of the business out¬
look is simple. We have been en- sharp decline in security prices have to liquidate high-priced in¬
believing that it ventories.
joying an inventory replacement last August,
The
to
;'
Don't Be Deceived
automobiles
and
favorable pattern
more
resumed.
have been going up too rapidly,
its
is
or
the
deterior¬
rapidl?rlhd prices of
homes
hew
some
But
being reduced steadily by
rising food costs as well as by
high prices for automobiles, re¬
er
Thursday, January 16, 1947
the moment,
I: would
:
say
,
,
'JWit'!,
Volume 165
Number 4560
THE COMMERCIAL &
FINANCIAL CHRONICLE
What Business Faces in 1947
(Continued 'from, page 266)
Congress
is
going
to
rot
alter that fact."
Third-—strikes
aspect
'
slumps in 1947, business would be
matexially i paying higher
it
is
the
private enterprise, society.
5
Fourth—In my view, the strikes
that will occur
yvill neither be as
able
;
critical
nor as
extended, npr will;
.they have the effect on the econ¬
with
kind
some
of
Let
me
labor
which
should
have
gone toward
the creation of business
optimism.
Curiously
have
enough,
these
factors
like water off the duck's
run
acteristics of
...
•
strike
that
stomach
and
a
is
called
on
called
one
full
a
on
an
empty .union treasury.
-
The second factor
A year
ago, the major CIO union leaders
were
not
only
determined
to
has
been
part
of
business
thought. I think it had something
to do, perhaps, not a
great deal,
with
a
the
stock
market
break
in
that
with
my
of
the
strike
they
—
would
win.
ception
certain
were
they
Today, with the
of
handful
a
of
ex¬
Com¬
of
with
war
the
Soviet
Union.
Now,
some of you may know my
attitude toward the Soviet Union
munist-dominated unions within
and,
the CIO, the balance of
the CIO,
particularly, to the Com¬
munist Party in this
labor
country. It
leaders
don't
want
the,
is far from friendly. I have earned
strikes. They hope
they can find the
disfriendship of the "Daily
some convenient
way of avoiding
Worker"—a disfriendship I value
them and are
fairly certain, if
highly. I say that as a background
strikes occur, that
they will lose for
occasion to
*
A
year
ago,
government
gave
the fears
labor its big push.
Today—Presi¬
dent Truman is
looking for any
future
means that will enable him to
now
stay
"far away from
any strike picture.
] A year ago,, organized labor
was riding
high. Today, no union
leader, with the possible excep¬
tion of John L.
Lewis, is willing
to take the labor onus for
setting
into motion
a
legislation.
Every
of repressive
wave
labor
leader
contemplating strikes knows that
Congress is sitting and waiting for
the
public
will
provocation
justify
a
such
drastic
more
as
Case
Bill.
timed
fears with reality. We
should have been afraid in '46
and confident in '47.
our
One
—
all
of
these
factors
to¬
gether and they are factors that
should give reasons for
manage¬
ment
bare
a
—
few
us
to
move
the
next
Wages. Again there are
things that can be said
are
not
the
volume
going to
they did
a
will
have
up
the
either in
proportion
ago, or at a rate
year
or
go
in
or
critical effect
ductivity
important
any
on
production,
or
pro¬
price. The Nathan
re¬
the wage-price-profit re¬
lationship will be the high point
on
of
demand, and in not one major
instance, the actual shooting point
of an important union.
Now, for what I believe has
unconsciously, been the most im¬
portant depressant—the fairly gen¬
eral
fear
business
in
that
certain
the
sections
price
of
of
the
particular product would drop and
drop sharply — or the price of
a particular
commodity. Again let
us
the
fantastic.- And
are
that
in
existence
1947
of
Soviet
foreseeable
or
let
me
the
even
the
fear
will
"friends" of the Soviet Union have
done more to contribute to those
fears than any comments
coming
from any other single
group in
this country. And if Henry Wal¬
lace keeps warning us against
the;
kind of thinking which involves
the
prospect
of
with
war
Henry Wallace whether his
question is not of the variety of
"have
stopped
you
beating
face
prices
certain
your
realities.
there is all the difference
world
between ;; "sharp"
-"sporadic,";
spread,
pretty
nations
even
price
though
breaks
and
sion. Asa matter
a n
d
»-■•»
hot for the
certainty of such price
The
each
taken
stand.
We
tion.
Much of
pean
will
peace
have
lived
ness.
For
that
as
the
no
were
nostalgic for what we be¬
were the "good old
days."
We pleaded and
begged and ham¬
lieved
mered for the return of the
com¬
petitive system. Now that
have
it with
cause
strug¬
gle with no one going bankrupt.
We would like collective
bargain¬
ing with no danger of a Wage in¬
has
war
play of labor and capital but no
strikes. I don't blame
anyone for
wanting those characteristics but
they are not part of the system we
asked for. They are not the
part of
the thing which made us
great;
certain
you
in
an
in
this
as
Jan.
on
four
room
it there is
a
great
war
household
and
133,000
in
Canada
The
total
Admiral
regular
per share.
Proceeds
used
You gauge your distance well and
soon
passed,
as
the
actual
your Toiot starts
of
the
issue
Corp.
offering
perspiration
be
Other members of the offering
,
j
danger is
syndicate
Co.;
are: Ames, Emerich &
Doyle,
O'Connor
&
Co.;
trembling, Hirsch & Co.; First Securities Co.
your
forehead
—
breaks
out
on *
and then comes
of
Chicago; White & Co.; McAlister, Smith & Pate, Inc.; Irving J.
the interval of worry. I am afraid 1
Rice
that the same thing has
happened
an annual wage,
level
of
pension protection
all
course
1
union
J
elec¬
as
to vote in union
elections/
important
for
it is for citizens to
as
employees. People
forget that employers
se¬
curity plan. Since 1937, for ex¬
ample, Ford Motor Co. has paid
almost $30,000,000 toward the so¬
cial security protection of its em¬
ployees. People also tend to for¬
get the large amounts which em¬
ployers pay toward unemploy¬
ment
insurance—another aspect
of the basic
pattern for protection
of employees. Since
1936, for
ex¬
ample, Ford Motor Co. paid more
than $58,000,000 into
unemploy¬
ment compensation funds;
"The
challenge to management
is to find a way of
supplementing
this basic pattern
wber^ver prac¬
ticable. Every
company "has to
find its
own
sirable
road toward this de¬
goal,
year creates a serious
because
circum¬
the
average union is forced to
spend half his time electioneering
instead of working at his job. The
good politician has the edge on
the wise and conscientious ad¬
ministrator.
'
of
benefits
1,1
.
f
on objectives that
for the real, long-term benefit
of employees.
"It
of
>
to
seems
terests
me
union
,
•
the
in-*
would
be better served, and relation^be¬
union
and
management
Would be more productive,' if the
tenure of office of union leaders
were
two years—or; even four
years."*/5;
Q. "What
are,
the kind of labor legislation
that should be adopted by Con¬
on
*
,7'/£
existing statutes
to excuse labor from respon¬
that
are
imposed; on
me
and influence, The only
they can achieve industrial
statesmanship is to v.recognize that
bility under the law,
"My legislative program would,
for the most part, be simply this:
Make the laws
governing the employer and employee fair to both
curity.
sides."
se¬
we must always remember
things: (1) the cost of any
pension has to be paid by someone
and, unless it can be financed by
productive efficiency, the cost will
be borne by the American,
public.
(2) The basis of security is a
steady job at a good wage. If we
the
as
search
|
sion' this
A.
as
&
Co.
and
Roberts & Co.
Sidlo,
Simons,
Ford
establishment
of
think
a
as
a
means
of
"To my
bargaining.
or
Federal
substi¬
'recession' to remedy this
New
been
and
joined the
York
City. Mr. Ward has
serving in the U. S. Army
saw
action in the
the Bulge.
"Unions should be required
to make ample disclosures to their
as
,
Richard J. Ward has
A,
finances, just
a
sales department of Wm. E. Polr
lock & Co., Inc., 20 Pine Street,
Mr. Ford's views
nances?"
on
mind, the real threat in
Wm. Pollock 8 Go.
on the
desirability of legislation
requiring all unions to make publie annual. reports on their fi¬
membership
on
Richard Ward With
When either
resorts to
Government aid, it risks the loss
of its freedom."
'/•>
are
sense
.
management
Q. "What
why, with
reason
no
situation, but I am afraid it may
if people believe the fallacious no¬
tion that we can pay higher wages
at this time w i t h O u t raising
prices,"
•
that
A.; "In private industry there is
no substitute for fair-minded col¬
lective
see
common
the present situation is that prices
are too high. I hope it does > not
tuting arbitration for strikes?"
labor
'reces¬
V-J Day.
re¬
system of labor courts would be
desirable
or
year?"
high productivity per employeesomething we have not had since
take
Mr.
thinkthe
come down. To bring them
down, we need efficient and con¬
tinuous maximum production with
costs."
Q. "Does
Ford
slump
have to
com¬
the cost of
"I
little
a
the part
of everyone, we cannot work our¬
selves out of our difficulties. Costs
a
and
well
Mr.
country faces
panies we work for must make
profits and stay in business. Only
out of earnings can come work¬
able plans for better employee se¬
curity,
"Does
Q.
two
have such jobs,
1
seem
the public is boss and to accept
with management equal responsi¬
individual of all responsibility and
incentive to provide his own se¬
to
,
Mr. Ford's-views
power
sion plan or other type of em¬
ployee security which relieves the
are
\
-
,
that
members
tween •
way
not in favor of any
pen¬
working toward greater
' <*
sibilities
good industrial relations program.
am
V'f
other industria 1 units. Labor
unions have grown to tremendous
welfare
be better achieved by a
can
y' f, '
box rather than
are
to
industry.
funds
■>-,
vk'SH K.
*
tend to make decisions and take
actions with an eye on the ballot
A. "Some
no
myopinion, the
through
union
'
,
gress?"
plan for guar¬
anteeing an annual wage which
can be applied to the
automobile
sought
'
;
"One of the toughest problems
management
faces
in
working
with unions—both local and Na¬
tional—is that union leaders often 7
stances in industries differ.
know
fundamental
problem, however* The leader of
•
industrial
pay half the cost of the social
the
will
to purchase
t
and
a
funds, pensions?"
er
of
the
machinery and
moment when the danger is most equipment and the
balance for
acute; at the moment when you working and expansion capital,
just -missed 4he other guy or he;'The total stock issue of the Canaiust missed you, your reflexes are * dian Admiral
Corp. will amount
perfect. Your foot is steady,,your to 265,000 shares, of which
Ad?;
hands grip the, wheel accurately.1 \miral Corp. owns 132,000 shares.
as
"Of
vote for the people who represent
them in Government.
fol-,
as
issue is subject to the reservation
of 50,000 shares for
offering to the
the
there isn't any trace of fear.
But,
are
improvements, better
tools and methods—all the
things
that lead to better products at low¬
close
At
sale
appliances.
(Del.)
at
price of $3
a
14 offered
radios, radio phonograph com¬
binations, refrigerators and other
I
stockholders
had
very
basic
"I
above-
.
union members
to
answers
A.
"The Federal Government
has provided, in social
security, a
"I
and
open
their integrity are desirable. Fur¬
these
on
desirability of adopting
welfare
"In
pes¬
cently found by Admiral Corp. for
manufacture
permanently
ever
a
common
international
automobile?
this is
of
'
Have
say,
op¬
stock ($1 par ) of
Canadian Admiral Corp.
Ltd., re¬
also certain that
society.
shave
again I
our
in
would like the free
we
been
not
eliminated
and
crease
shares of
exists with any major power, let
me
also
say,
in longer range
am
we are scared be¬
would like the competi¬
we
tive system with a
guarantee. We
would like the competitive
which
we
elim¬
threat of neartime
terms, that I
again
us
we
Dempsey & Co., Chicago, headed
an
invesment banking syndicate
insti¬
as
we
Can. Admiral Stock
be
been
Because,
that
am
busi¬
war
basis,
curity,
Euro¬
finally
has
of
Dempsey & Go. Offers
now
international
war
an
guaranteed
years
their
are
the
"In
be
led
by the
apparent
peacetime atmosphere of 1947, to
believe
on
five
day manana."
may
tution.
a
and
tions, bbthv National and local, ^
should be honest, open, and above-*
board, and all safeguards to insure
Mr. Ford's views
are
policy of granting
major
achieved. I worry a little that
inated
operation. In
years we
courage to grasp
jockeying and
filling is over. In
of
an
ago, at a Sales Executives
Club meeting, "If we but want it
and
have
the
intelligence and
the
backing and
1947, a settlement
that kind of
group such as this we can confess
to ourselves that for five
annual
an
all
Na¬
"Holding union elections every
Sometimes
on
written
questions,
Q. "What
on
on
for
require these elections to be
A.
lows:
vulgar for him to expect profits
years
we
coming to the time for consolida¬
wide¬
reces¬
passed.
have
outermost
Some
in the
much
doesn't
of
submitted
require
elections
board?"
subjects, expressed in
form
i
thermore; it is
Mr. Ford's full
views,
and other
the
'
v
would
hold
tional officers
!
-
fvv".'
that
to
honest
;
for
before
in which
year
brokerage
simist bringing you a
message of
optimism. I would like to close
with several words I used once
will begin to achieve a kind of
international stability. The time
for
reaching
and
grabbing' is
are
going to drop —and
some
prices are going to drop
catastrophically. 1947 is going to
be characterized
by sharp declines
;in the prices of specific commodi¬
ties* particularly of the agricul¬
tural variety. Ahd wheri
price
'slumps come; in our system, a
•commodity doesn't go down by a
penny or two, it goes from top to
bottom
almost
overnight.
But
a
of
intelligence, and
incidentally, it is a little
So
wife?"
1947 will be
type
they are not part of the
portunity for tomorrow.
Soviet Union, I would be inclined
dustry.
take any skill or
I think,
and
the
International Stability
about wages. With few
exceptions,
wages are going up, but wages
port
near
optimism.
Now, let
that
with
war
diminish. The irresponsible state¬
ments by some of the American
Wage Fear
fear
of
Union in the
add
during 1946 that
say
that
;
/.i,r
law
a
and
That he knows of no
existingannual wage plan that is
prac¬
ticable for the automobile in¬
business
acquaintance re¬
cently said to me, "You know, I
don't buy anything I haven't al¬
ready sold." The hell
he is no
enterpriser — he's a broker. And
on
unions
;
of office of
union leaders should be a min¬
imum of two yearfc.
falutin'
phrase that
should probably be confined to
sociology — has unfortunately not
*
cial reports.
That the tenure
.
difficulties are be¬
not ahead — not, at
least, in 1947. Our own "cultural
lag" as businessmen—to use a
high
industry.
That: unions should be re^
quired to make "ample* finan-
us,
to ask
Add
,
next comment. I have had
my
them.
on
The major
very
,
Q. "What are Mr, Ford's views
imposed
get through
major difficul¬
...
September that began to usher in
this wave of pessimism,
talking
of the
occasionally expressed fears
labor laws that will
place unions
under the same
responsibility to
the public that is now
could
we
most
hind
either
we are
earned
for
with
,
ourselves carefully in
those
periods in which business failures
do not exist because
which. I
gotten through the period of real
difficulty, the foot is now starting
to shake,
private enterprise
economy. We had better examine
a
me
(Continued from first page)
Other views
expressed by Mr* corporations are required to make
were:
full financial
reports to stock¬
That Congress shbdy eha^
holders."
Ford
ties. But we did. And like the case
of the automobile
scrape, having
riding on the crest of a dangerous
just indicate them;
boom or we are no longer
operat¬
briefly.
ing in an enterprise environment.
1
A year
ago at his time, the
strike treasuries of the
major CIO
Psychological Causes
i
unions in this
country were filled..
And now for one of the theories
Today, in almost every instance,
they are empty. There is all the. explaining our recession thinking. 1
difference in the world, between I don't know to what extent this
back. Let
ible
add, incidentally, to the
price breaks—some bus¬
.
picture within the past six months ;
Wages, Says Hewy Foid, 2nd
.
.
pessimism — was
problems of such a
magnitude that it seemed incred¬
filled
omy that has been
anticipated by inesses are
going to go bankrupt
the vast
majority of businessmen. in 1947. But I
must add that bank¬
There are many factors
which! ruptcy is one of the normal
char¬
have been introduced in
the
.
period in
reputation
justice, to achieve a kind of sta¬
bility in 1947.
/
occasional
■
The,first year after V-J>Day
—as I had occasion to?
say in a
rough
-
Recession Inevitable With
Higher
economic
Post-WaC Pessimism
most
pessimistic of us con¬
template. It is precisely because
prices will break that we will be
.been asking for the
return of the
recent
our
experience*
going to, and we would all be fac¬
a sharper recession than even
a; ? private
enterprise
and it is we ?who have
in
us
inevitable' ing
are an
of
.society
than
wages
to
295
vice
'
he
& Co.
Battle^ of
Prior to military .ser¬
was
with
Harvey Fisk
.
;
THE COMMERCIAL & FINANCIAL CHRONICLE
296
Jhhrsday;January16,1947;,
'
products
Economic Outlook and Effect
•
J (Continued from page 266) ;atid the need to pay off short-term
loans. The magnitude of the losses
increased by the practice of
pricing inventories on a first-in
iirst-out basis. As you know, this,
period since the start of the have not' been reflected signifi¬
cantly in the price to the con¬
;
/'. ,■,
:.if'
war."
■y*
sumer. While I anticipate no sharp
losses from
bad debts fell sharply as the break in textile prices, my guess
proportion of cash sales in¬ would be that they will be lower,
creased. This trend has air later in the year—this will .be
;
particularly true if allowance is
ready been reversed.
made
for the improvement in
d. As buyers' markets become
quality which will characterize
more widespread, there will
these items in the months ahead.
be closer pricing for many
For appliances and other hard
items and the ability to pass
cost increases.on to the con-* goodSi higher prices seem • prob"
c.
was
^method
pricing
of
I
,
exaggerates
-profits when prices advance
sharply and magnifies losses when
prices break. Dr. Simon Kuznets,
the leading authority on national
»income, has estimated the total
inventory
loss — manufacturing
and trade—at about $11 billion
^during 1920. and 1921.
<; In
other words, a decline in
During the
is
sumer
becoming
'
♦
&ales
an
8.8%
in; 1938,'
their
income fell 24%.
With
v.
'turn
this
to
the
present
let
in
1. Retail sales during the holiday
season reached the h^hest to*
tal
on
-
J
'-
•
'?
Commerce has
estimated
'
.
costs,
that
i
'
tion
in
ness
daily large" in¬
sales
about in line with
have
consumer
repetition
is
a
among
greater
inven¬
if business actu¬
even
decline.
does
become
ing.
However,
as
increasingly discriminat¬
Large markdowns
goods
on
ersatz
inevitable—and
seems
the
the better. Careful scnitiiiy
of inventories
of
the avoidance
that the situation
today is fundamentally strong and
retailers of the
that
any; recession will be very
moderate, and temporary in na¬
,
ture.
No
treme demands met.
an
and the transition period.
It will be an important factor
in 1947. As one bit of evidence
war
to how this
as
change in! income
distribution affects demand, the
following .figures for spending
on clothing and household tex¬
tiles, etc., compiled before the
Income
of
interest.
some
Groups—
2,000......._
3,000...
5,000....
-
three
the
which
factors
next
few
44.38
55.55
Let^me outline briefly the
months—this rise is still less
than
that
have
a
sales during
I
refer
to
for
which
excise
■j
•
rose
to
had
risen
184%.
229%
Since
1939,
down
78%.
For
the rise last time
in
during the
factors,
I
such de-
one
do not foresee any
war.
million
a
homes, the increase in the
number of
drastic—48%
for hides
in
run
have barely made a dent
meeting this demand in 1946.
in 1920-21
?
.
20%
save
qther items.
.
on
furs
and
It is important that
make the public aware of the
fact that the reduction in the tax
you
will
be 10%, not 20%.
Congress
must take some immediate action
in
connection
with
families, and related
assure
a
record-break¬
ing demand for the equipment
required to furnish these homes.
year.
To
is
velopment in 1947..
Some
in
extent, this demand
addition
ments demand
to
the
built
replace¬
during
In his Economic Re¬
Outlook for Prices
reduced
up
at
excise
announce
a
are
taxes.
to be
they should
policy at this time of
once,
or
However,
these
the
sales
will
>
t
-
ding large wage increases. A
repetition of strikes is probable if
they insist upon having these ex¬
Such
de¬
a
would again disrupt
flow of supplies and would
velopment
the
act to reduce the total volume
by
an
increase in activity once the
strikes
ended.
were
business
the
of
This would be followed
business.
lost
But some of
would
be
not
regained and the net effect would
be to reduce total sales in 1947.
important sectors of the
This would aggravate
already a serious situa¬
tion—namely they high level of
prices. Consumer resistance, which
has
is
become
evident
for
■*
some
products,
would
become more
widespread. The basic fact is that
such wage increases can only help
less than one third of our popula¬
tion, while the resulting price in¬
crease will hurt everybody.
Consumers loill become increas¬
ingly discriminating
as the year
Already they are shy¬
progresses.
ing away from shoddy materials
and products of inferior quality.
It may be expected that this trend
will be accelerated. Buying and
merchandising
policies
are
al¬
ready beginning to reflect these
trends. In conclusion, may I re¬
peat that I am moderately opti¬
mistic for the months ahead. I do
not envisage a repetition of the
1920-21 depression. Some decline
in business can take place. But if
it does, it will be moderate in
depth and temporary in nature.
Its magnitude will be significantly
affected by the labor situation and
the
which
in
manner
that is fi¬
nally settled.
(Continued from page 267)
There are,
many other phases of the economic and
long-term technical picture which must be taken into account before
reaching a conclusion as to the outlook for stock prices during the
coming year.
The more important of these factors will be discussed
in detail in the following paragraphs.
of
course,
PRINCIPAL BULLISH FACTORS
1.
Stocks
are
now
attractively
priced in terms of earnings in
prospect
during
the
next
twelve months.
Subject to year-end accounting
adjustments, it is probable that
earnings for the thirty
stocks
which make up the Dow-Jones
Industrial Average will amount to
the war.
composition of
The outlook for prices may be
port, the other day, President approximately $12 a share for the
shift—with
as
follows:
Food
Truman called specific atten¬
durable goods assuming greater summarized,
year
1946.
(This is about 5%
tion to the anticipated high de¬ above
:
relative importance and non¬ prices are already past their peak
the
estimate
which
we
durable goods reversing some with further declines probable.
mand, for housefurnishings and made in January of last year.)
The wholesale price index for
of the gain recorded last year.
appliances.
Barring prolonged labor disturb¬
One effect will be a softening food has been declining steadily 3. Consumer incomes will remain
ances, which appear unlikely, it
and is already 10%
at record high levels in 1947 seems reasonable to
below the
of prices for non-durable goods
expect that
October peak. This decline is now
i
as the year progresses.
as a result of the high level of
earnings for this same group of
industrial
being reflected at the retail level
activity previously companies will average about $14
—further price reductions may;
Profit Margins Will Be Smaller
mentioned, Howeyer, some de¬ a share during the next twelve
be anticipated.
cline in farm incomes
seem
months. This gain of 15% to 20 %
4. In the face of relatively unThis decline in food prices is
probable. When, in addition to is anticipated largely because of
*
changed or moderate declines important to you because it will
these
high current incomes, the substantial improvement in
in retail sales, profit margins
reduce the pressure to curtail
consideration is given to the the
earnings outlook for such
X; i will be narrower than in 1946;
spending on the non-food sector
large volume of savings and companies ; as
:
American
Can,
This is so for the following
of the housewife's budget.
liquid assets and the relaxa¬ American Smelting, General Elec¬
reasons:
Textile prices are at or close to
tion of consumer credit contric, General
Motors,
Chrysler,
a. Operating costs are inCreas4 their
-peak. The sharp - break in
trols, it seems fairlyv clear that International Harvester and Westihg. Wages will be higher; raw cotton prices several weeks
consumers will have the pur¬
inghouse Electric, where direct
Delivery costs are increasing. ago is a warning to the textile
chasing power to bUy these labor troubles, material shortages,
An increase in competitive
industry that inventory specula¬
goods. How much can be bought and/or sales commitments at V-J
selling will mean the re- tion may prove to be a very ex-<
with this purchasing power, will
Day price ceilings had the effect
!- :; > sumption of
costly services pensive proposition. In addition,
be determined by the changes of
keeping earnings during 1946
and other activities designed cotton futures are 5 to 6 cents a
in the level of prices. To the at
definitely, . subnormal' levels.
n
; to secure your share of
the oound below current spot prices. r; extent that food prices continue
Gains in prospect for these com¬
consumers' dollar. V,;
l
•
However,
labor
costs
their recent decline, a larger
recently
b. Markdowns will be large and have been
increased again so that
proportion of the consumer's 1 panies during 1947 should more
s
more widespread than in
any the lower prices for raw cotton, "spending will be available for than offset the declinesjjbhich are
.
-■
can
Labor is again-de-
-
The Outlook for Stock Prices
plants
to
backlog
new
leather
allowed
The establishment of
was
and
modernize
were
than twice as large as
that since 1939. The collapse
was
to
We
each?
for textiles and 46%
auto¬
of demand for
consumers' goods remains high.
prices have
90%; hides and leather
risen
as ;
and
order
2. The
more
total in-
can
we
' 6 'to.. 8
months' production.
Many businesses- will be ex¬
panding plant and equipment
which
by
wholesale textile
rent rate of production of which
has already passed the 1941
levels. Since no significant in-
the
order
declaring the
period of hostilities to be termi¬
nated.
Many consumers fail to
realize that a complete elimina¬
tion of the tax is not pending.
Any number of people have said
to me that if we wait until July
to
in
May, 1920; hides and leather
group,
with
declare that these taxes
industries
building will be
operating
at
record
levels.
Many leading industries report
a backlog of orders equivalent
during
goods' have not been available
in adequate supply as a result
of £ reconversion k prob 1 e ms,
strikes, and material shortages.
1947 will witness a. larger sup¬
ply of durable goods,;; the cur¬
have
President's
accordance
To eliminate uncertainty, it should
key
mobiles
and after
World War I. For example,
the wholesale price index for
risen
in
difficulties
labor
economy.
Such
stantially since 1939—partic-;
ularly pduring the past few
-
June
how
what
taxes will be reduced at the end
of
two
seen
many
•
73.57
can
on
months.
products
City
if excessive wage in¬
forced, additional price
increases will be unavoidable in
the impending reduction in excise
taxes, the labor situation, and the
large price increase since June.
It seems fairly certain that de¬
mand will be adversely affected
for
York
New
Pittsburgh, to mention but
illustrations, recently have
creases are
As against these favorable fac¬
tors, it is important to mention
negative influence
difficulties.
Moreover,
duction seems assured for 1947.
price collapse similar to
that in 1920-21 is imminent.
While prices have risen sub¬
in¬
; >v comes is anticipated for 1947,
the total volume of sales mast
he considered about at its peak.
and
inventory speculation, will keep
I have stated
well known. Consumer's durable
consumers*
1920-21
all of you know, consumers have
aware¬
textiles
in
the
of
tory losses
ally
tories.
c.
goods have been relatively low.
reason for this situation is
crease
man
the prewar years. It has been
important factor in the rec¬
ord volume achieved during the
present
1,500
2,000
I do not believe there will be any
of inventory valua¬
the retail method;
The
**.
higher level of demand than in
moderately lower level in
ventory house in order in-; reasons for this statement.
stead of speculating in inven¬ 1. A high level of industrial
pro¬
comes.
-
.
3,000
being made to put the in¬
been
Howeyer, base'4 op past
relationships, sales of hon^-dur-;
able goods have been relatively
high, while sales of durable
reduce sales.
the months ahead.
danger of excessive inven¬
tories add hence efforts'" are
retail
retail
and
war, are
In light of the foregoing factors,
quite
bor
the
pate
a
affect
can
17,-
war
at
$500 -$1,000.——.- $27.39
1,000 - 1,500...
36.73
clines will be reduced.
...,
3. Total
or
b. There
profits and
extra dividends to stockholders.
These increases in profits re•^'7 fleeted- the increase in volume
and the elimination of the ex^ cess
profits tax.
■
i,
surprising.
replaced the first-in \
any inventory losses within mod¬
first-out method; inventory
est proportions for 1947.
losses
attending price de¬
Of course, this
ratio
does
not
apply to all
stores. But, the. newspapers an¬
almost
about
to
which
time.
Even after allowing for the in¬
crease in prices, this major shift
in
income makes
certain
a
On balance, it seems to me that
have
period of 1945.
creases
the
the cost of living now is at about
its peak and that we can antici¬
To the extent that the LIFO" faster
method
Na-
•;f I .wholesale and retail firms was
f^LSQ;%greater than for the same
nounce
severely
the level of sales, particularly in
some areas, is the problem of la¬
000,000
de¬
.
the
tional City Bank reports that
during- the first nine months of
1946, the profits of 21 large
}'■"
cline would not be
factor
disturbing
before
cases, a re¬
of part-of the recent
Problem of Labor
second
The
the income class $2,000 to $5,000
has
increased from
6,000,000
.
a.
,
the
steadily. ] However, * the
latest inventory data indicate
that
such
inventories,
while
substantially greater than be¬
fore the war, are still not high
in relationship to sales.
Sev¬
eral
factors
distinguish
the
present situation from that pre¬
vailing in 1920-21:
for the balance of the increase
rising
To
ing
about 10% greater than in
1945 and 13% greater than in
1941. price increases accounted
in total sales.
•
5. Inventories have been increas¬
was
•2. Despite
versal
some
No Repetition of 1920
physical volume of sales in-1946
'■
doubt
1
Inventories Are Not High
record. Total department
store sales in 1946 were more
than 25% above 1945, almost
double the 1941 total, and 2%
'times as large as prewar. However, the U. S. Department of
;
powerful
they can \be
extent
that total volume declines,
the pressure on profit mar¬
gins will be intensified.!
Lower
profit margins and
smaller dollar profits seem
certain for 1947.
lessons of the past.
;
moderate and in
v? fully offset.
-retailing and attempt to apply'the
*
that the number of families in
already declined substan¬
tially in price, the worst is over.
Any further declines should be
that
us
situation
v/
have
are so
redistribution in in¬
taken place during
the war. While the data are;
not precise, it may be estimated
continuing them for at least an¬
other year,"Either of those devel¬
opments is to be preferred to
maintaining the status quo until
the end of June.
has
comes
For high-priced luxuries, which
The only recourse is
higher costs
taxable
background,
grow¬
more
decline in
net
a
wtige
increases are won. However, here,
too, Ianticipate that before 1947
closes, prices will be declining as
supplies become more plentiful in
relationship to current demand.
by non/■ /Cy;. V;
Increases in Individual Incomes
new
efficient operation. But
these
forces
hiaking for
by the Conference Board may be
~used to indicate this relationship
in the 1937-38 depression. • These
j25 stores had
For
able to the extent that
and
ing list of items, this ability
has already disappeared.
The foregoing factors can¬
not be offset significantly by
expanding
the
volume
of
sales.
:
'
more
distributed
food stores.
4; A major
war,
difficult.
more
sales under such circumstances is
accompanied by a much larger dein profits.
Data compiled
for 25 leading department stores
-
'
*
'cline
Retail Distiibution
on
likely to be witnessed in some of
consumers' goods industries,
including retail trade, liquor and
motion pictures.
the
Stocks
2.
on
....
attractively
are
priced
yield basis.
a
The average yield on the cross
section of the market represented
Dow-Jones
the
by
group
is
4.2%.
now
Industrial
This is more
than W2 times the current return
high-grade bonds.
on
Eight,
or
27% of the thirty Dow-Jones In¬
dustrial issues, give a current re¬
turn of
the
than 5%; only six of
more
thirty stocks yield less than
3.5%. Present indications
dividend
payments
are
during
that
1947
will, on the average, exceed those
made during 1946. (There is little
likelihood of
ments
by
American
General
house,
was
a
reduction in pay¬
such
Can,
companies
General
Electric
where
and
as
Motors,
Westing-
operating
income
below dividend requirements
during the past twelve months. On
the other
are
in
hand;, dividend increases
prospect for maiiy
com¬
.
:
•
panies, including General Motors,
International Nickel, -Johns-Man¬
's
*4
'A'-'i
y r
«.<•% ■
'i
-
THE COMMERCIAL & FINANCIAL CHRONICLE
.Volume 165, .Number 456Q
ville,; National Steel,- and possibly
economic picture.
U. S, Steel.)
the
Republican party has
'3. The
re¬
The extent of
price maladjustments may be
seen from the following tabulation
,
New Deal.
It
(1935=100)
little time for
businessman to readjust
their
thinking to the fact that there has
Year
been
right
1937
..
political thought.
However, there is little question
1939
...
but that the outcome of the No¬
1941
...
vember
at
1943
improvement in
in
take
may
a
defnite
a
the
turn to
American
least
elections will
gradual
a
lead to
business confidence.
4. It is probable that tax rates will
be
particuarly
reduced,
the
all-important,
for
consumer
group.
Some of the leaders of the Re¬
publican party are on record with
>a promise of a 20% cut in per¬
sonalincortte taxes* Present indi¬
cations
that this goal will
not
be realized except for the individ¬
uals in the lower brackets, who
will
are
have
their
take-home
pay
increased by perhaps a 10% re¬
duction in tax rates, together with
an
increase in personal exemp¬
tions.
Any tax reduction, how¬
ever,
will raise the purchasing
power of individuals, and reduce
the
for
pressure
higher
wage
rates.
5. There is
danger of
no
a
credit
stringency.
The
end of 1929.
In addition to these
is an unparalleled
volume of liquid assets in the
form of readily marketable or
convertible government securities,
there
A significant feature of our ex¬
f
panded credit base is the fact that
it is largely the result of the in¬
in government debt. For
.^his reason, there is little danger
of any substantial contraction of
outstanding credit for many years
crease
to
come.
,
.
,
.
In connection with this
question
of the supply of credit, it is inter¬
esting to note that the latest figtures released by
the Stock Ex¬
change show that on Nov. 30, cus¬
tomers'
debit
net
balances
were
approximately $150 million below
customers' free credit balances,
whereas
eighteen months ago,
'
,
customers'
,
net
debit
balances
exceeded* free credit balances by
more
t/han $600 million,
v
6. We have made very little prog¬
ress in satisfying the pent-up
demand for semi-durable and
durable goods.
2
During the past twelve months,
rwe have merely scratched the
sur¬
face in satisfying the demand for
such goods as automobiles, hous¬
ing and commercial buildings. As
matter of fact, the o"consump¬
a
tion"
or
deterioration of automo¬
inventories to sales. The principal
unfavorable feature of the inven¬
with borrowed
other assets.)
'
'y* >??■£" *• 1$
duction
which
ation
1935
100;
100
100
110
110
106
83
v.:
104
.—
91;,;
145
1945
163
152
124
1946 (Nov.)
215
199
164
situ¬
producers' goods,
items
neck
bottle¬
as
become
available,
(Some very large increases in
inventories of semi-finished goods
be traced to delays in the
procurement of scarce items.) It
should be kept in mind also that
may
under unsettled labor
cultural prices and finished
goods
it is perfectly - normal for manu¬
prices.
facturers to try to maintain larger
than pre-war inventories of parts
By early 1920, there
also
were
maladjustments
in
the
price structure. These maladjust¬
ments
were
subsequently correct¬
ed
only as the result of a major
deflation. A general deflation was
then
possible
cause
had
we
purchased from
reduce
to
stoppages
labor
loaning power of our bank¬
ing system, with call money ris¬
ing to over 15%, and commercial
interest rates increasing to 8%
by
July, 1920. The price inflation at
was
based
largely on
private or short-term borrowing,
rather than
on
semi-permanent
government loans.
In view of the
infinitely stronger credit base at
the present
time, it is not unlikely
that
we
will
see
a
correction
of
the more important
price malad¬
justments through advances in the
prices of some commodities, and
moderate declines in
others, rather
than through a general decline of
varying degrees in all prices. The
limited effect on the stock market
of a recent decline of 33% in cot¬
ton
prices, and the lack of
correlation
others, in order
danger of work
because of temporary
the
disturbances
in
the
sup¬
pliers' plants.
4. Bank
of the
time
conditions,
and
necessary be¬
reached the limits
between
a
close
commodity
and^stock prices bvitd
iojtg pe^
riod of; years, indicate that cor*
a
general expectation
of a business recession.
loans
have
been
rising
quite sharply during the past
few
The
months.
rise
cultural
in
and
commercial,
industrial
agri¬
loans
of
past 12 months is .currently men¬
tioned, in some circles, as an un¬
The rise to date
does not appear to be
dangerous,
particularly since these loans still
represent a relatively small por¬
tion of our credit structure. (Dur¬
ing 1927-29, total bank loans were
equal to over 68% of deposits;
today,
they
equal
are
having a depressing
the psychology of
individuals* This is due in
are
influence
to the superficial analogies
being drawn with 1919-1921. The
general reasoning is that a decline
in commodity prices will
bring
part
about
substantial
reductions
in
purchases, widespread inventory
losses, and a general curtailment
of
operations, pending reductions
in costs.
It is impossible for us
to follpw tjiis reasoning,
except
in the case of the segments of our
economy which are made up by
small, high-cost producers. Manu¬
facturers of prewar, $15 quality
radios, which are selling currently
at $35 to $40, or distributors of
prewar, $1 shirts at recent prices
of $3 to $4 will undoubtedly wit¬
,
substantial curtailment of
demand as the larger companies
ness
a
swing into full production. How¬
the outlook for near-capac¬
ity production (limited; only by
material supplies) in the steel,
building, office equipment, rail¬
to
about
road
equipment,
nishings
and
household
similar
fur¬
key indus¬
tries, would seem to ensure a
higher rate of average sales dur¬
ing 1947, for the types of com¬
panies whose securities are listed
on
the New York Stock
need
have
a
material
trial activity and corporate earn¬
decline in stock prices.
In 1927,
for
continue
effect
to
hold
at
a
very
high
Retail establishments will
can
and do go to extremes,
terials
will
mean at least a grad¬
ual revision of the New Deal labor
laws
from
this
point
on.
istration
and
weaken
,
the very
labor
the
threat of
legislation will
position
of
labor
leaders, who formerly could count
governmental intervention in
their behalf.
on
been
during
the
finished
goods
steadily
rising
past
twelve
months.
The
changed attitude of the Admin¬
restrictive
and
have
undoubtedly
ally
reduce,
if
not
cancel,
the
the
threats
of
a
general,.-shutdown
through strikes in key industries.
Inventory data, as compiled by
Department of Commerce,
been given wide publicity
during recent months, with the
emphasis being placed on the in¬
have
crease
in the dollar value of in¬
ventories, rather than
on
the ef-
PRINCIPAL BEARISH FACTORS
1. There
are
many
serious price
maladjustments, which must
,,be corrected.
,:
This .is,probably the most un¬
favorable, factor
in
the
present
♦Montgomery
portal-to-portal
Ward's
reserves
are
equal to about 10% of total
inventories.
Sears Roebuck's re¬
new
current
issues
indications
will
appear
are
that
in large
volume if and when the market
as a whole recovers to somewhere
near
the highs of last summer.
Unless the Federal Reserve Board
restores the loan value of securi¬
ties, the general technical position
of. the market
could
again be
greatly impaired by any substan¬
tial
increase
in
new
flotations.
(New offerings can create a tem¬
serves approximate 15% of
aggre¬ porary strain in the investment
gate^ inventories- — ^the bulk of markets, inasmuch as the proceeds
.
which are
fast-moving items.
reaching
reactionary
any
periods in the market
At
the
highs
as
whole.
a
registered
in
the
second
quarter of 1946, the DowJones Industrial Average was sell¬
ing at 18 times earnings. In ret¬
rospect, it appears obvious that
this
abnormally high ratio re¬
flected
in
part
the
temporaryvalue of stocks because
scarcity
certain
either
accounts
because
margin
were
of
the
requirements,
"frozen,"
change in
for tax
or
On the basis of the
reasons.
nor¬
mal
high price-earnings ratios of
about 15 to 16, and a normal low
price-earnings ratio of about 12,
could
we
1947
of
expect
during
between 210-
low of 160-170 in the
a
Dow-Jones
(The 1946
high
a
somewhere
220, and
Industrial
Average*
212-162.) <
range was
.
Inasmuch as the "news" during
the first quarter
(earnings';
re¬
ports for 1946, the rate of earnings
1947, Con¬
gressional action on taxes, etc.)
should be very good, it seems
(rea¬
sonable to expect that stock prices
will work upward during the two ;
to
three
months
immediately.for the first quarter of
ahead.
as
a
The trend of the market
whole during the second and
third quarters will depend in
part
on the extent of
any first quarter
advance, and the speed with wjiich
have
been
since
establishing
base
a
September-October,
the
for
jl.946,
next
phase of the
market which started in
bull
194g.
M.
Hall Heads Div. for
"""it
from the
Legal Aid Appeal
Herbert
'Mfe'-i
S.
Hall, partner of
Morgan Stanley & Co., has; ac-r
cepted the Chairmanship of.;, the
"f
■ty
'
*
stronger today than they were in
l* Herbert
S.
Hall
"<.w
claims,, and
ity holdings^ Many proposed of¬
ferings had to be withdrawn fol¬
lowing the collapse of the market,
and
the
conditions
"during
dustrial
,
level.
lows
longer-term point of view, -jit is
probable that the market averages
example, stock prices rose
almost month-by-month, from a
show a belligerent attitude;
January low of 153, to a December
The strength of the labor unions, high of 202 in the Dow-Uones In¬
of price maladjustments
not
normal
new
It also might be in order to
point out that a decline in indus¬
a
a
5. Some labor groups continue to
are
the various economic
maladjust¬
ments
are
corrected.
From
a
ings does not necessarily lead to
20% of deposits.)
which
Exchange,
companies enjoyed as
group, during 1946.
than these
together with the radical leader¬
Average. In the mean¬
ship of some of the locals, is caus¬ time, the Cleveland Trust Com¬
ing a certain type of tension which pany's Index of Industrial Pro¬
on stock prices as
long as there is was
only
infrequently present duction declined from 9% above
no credit stringency.
during the pre-New Deal era. normal in March to 2% below by
Recent demands for another round November, and earnings of the
2. Our current productive capa¬
of wage increases (while
insisting 30 companies which make up the
city for certain types of goods
that
industry 2 absorb
such in¬ Dow-Jones Industrial group av¬
is in excess of demand.
crease^ and < the demands Si for eraged on^y $8.72 ajshare in 1927,
Although we still have, very retroactive,
portal-to-portal pay, as: co,mpare4- wMh $lSL.39 a share
substantial
shortages
of
many are
disturbing factors from an in¬ in 1926. The strong technical po¬
types of goods, there are signs of termediate
point of view. It will sition of the market following
overoroduction in other lines, in¬
probably be another two or three the early 1926 retracement of the
cluding radios,
women's
wear, months before we can be certain preceeding. 12
months' advance
and small household
appliances. that the labor unions will not in the majority of issues, the easyThis over-production is
being felt force another serious curtailment credit policy of the Federal Re¬
particularly by small manufac¬ of production during the current serve, plus \ confidence in the
turers, and there is some question year, similar to the
costly shut¬ longer-term ,outlook, proved to
as to whether even the low-cost
downs of early 1946. In the mean¬ be more potent factors than even
producers of branded merchandise
time, however, it is likely that a business recession. (The funda¬
will be able to sell their output
both Congress and the
^Adminis¬ mentals of potential demand for
if general employment does not
tration will take steps to materi¬ goods and the supply of credit are
rections
broad "trad-
a
overpriced in
terms of their earning power un¬
on
ever,
the weekly reporting banks of the
Federal Reserve System in 101
cities of about 50% during the
favorable factor.
irig 1947
many
stocks
der
The
disparity between the rise in agri¬
serious
,
^
-
widely publicized predic¬
inventories, partic¬
tions of a business recession dur-?
ularly in relation to sales, will
into
power, of course, as the incomes
of, many groups in our economy
is relatively stable.
However, the
greatest significance lies in the
'O'/V'.'
This could result in
ing" market, perhaps not far from
the range of prices experienced
during, 1946. Under such condi¬
tions, the more strongly situated
issues may be expected to work
upward,
on
balance, with the
,
a
rent inventories will be converted
The over-all price rise in itself
creates
distortions
of
buying
<
,
■'
..
cannot continue in¬
bear watching during the next
few months. It is possible that a
substantial proportion of the cur¬
122
some
accomplished
were
funds, in anticipa¬
subsequent sale of
the
7. There is
;■
The trend of
108
156
some
of pro¬
excess
buying
tion -of
definitely.
98 ;
108
an
consumption,
over
the
This
use.
strain could be alleviated if
of
early 1927; confidence, however,
probably find it necessary to ac¬
has not recovered from the series
of jolts it received as a result of
the construction field, government cept inventory losses, on hard-tomove
14 years of "economic
merchandise, and sales ex¬
restrictions and material * short¬
planning".)
ages have forced the abandonment pense will increase as buyers be¬ 6. There Is a large potential
sup¬
come price conscious.
of many projects, including the
However,
Summary and Conclusion
ply of new issues. ? •
the conservatively managed mer¬
building of theatres, stores, and
In the last analysis, the trend
chandising organizations have set
One of the, contributing "causes"
manufacturing
plants.
In
the
of stock prices is governed
prin¬
meantime, obsolescence is con¬ up substantial reserves for inven¬ of the sharp decline in stock prices
cipally by the interrelated fac¬
tinuing to add to potential de- tory losses,* and should continue during the third quarter of 1946 tors
of (1) the outlook for earn¬
to
enjoy reasonably : profitable was the indigestion in tfce securi¬
mands.
\
•
operations, even if total dollar ties markets. This in turn was the ings; (2) the lever of comparative
stock and bond yields and the
7. We have passed the peak of sales decline
by as much as 20% result of a substantial increase
outlook for dividend payments;
one-sided labor legislation.
to 25%—or to
only about 50% in the number of new offerings,
(3) the supply of investment
The results of the November above prewar levels.
at a time when investors were not
funds; and (4) the level and trend
elections, plus the realization by
being permitted to borrow funds of that
elusive, psychological fac¬
the President that labor leaders 3. Inventories of both raw ma¬ with which to add to their
secur¬
biles has probably exceeded the
number of new cars produced. In
.
available for immediate
lines it reflects
Finished
Raw
Products Materials Goods
that
total
supply of money is
now about $170 billion, as com¬
pared with $78 billion at the end
of 1941, and $55 billion at the
funds,
Farm
rising prices "on inventory
values, and the necessity of main¬
taining a minimum relationship of
tory. data is the fact that in
captured control of Congress, ) of United States Bureau of Labor
after fourteen years of the Statistics data.
.
feet of
-297
offerings usually
are not
tor called "confidence." On the
basis Of at least the first three of
these four
a
factors, the market as
whole appears to be in a buying
area; an improvement in confi¬
dence may be anticipated as the
attention of the public is directed
to
some
pects
of the
of
more
the
favorable
overall,
Legal Aid
trends
in
our
seems reasonable to
economy,
i'i
:
Division
of
Society's Appeal,
it was • announced by William B.
Given* Jr., President of American
Brake
Shoe
Co.
Mr.
Given
is
General Campaign Chairman and
Barent
Ten
Eyck,,: of Spence,
>
Hotchkiss,
Parker
& Duryee, is
year the So¬
for $200,000 in
order to continue to provide > free
legal advice and representation to
those who would ^therwisb- not
Co-Chairman.
ciety. is
This
asking
be able to afford
an
the services of
attorney.
Before
joining Morgan Stanley
& Co. Mr. Hall
the Guaranty
Field,
Glore
was
affiliated with
Co. of New York,
&
Co.,
W.
and
K
Hutton & Co.
During
1946
Society, which
Largely because of the. diver¬
.
The
Bankers
as¬
economic
picture.
gent
■
Investment
it
expect a con¬
headquarters
helped
over
at
The
m a
11
i
Aid
Legal
n
t
a
i
n s
Park
its
Place;
41,000 persons in
a
Wide, range of legal matters. Ap¬
tinuation of highly selective mar¬
proximately 25% of the- applicants
kets during the next 12 months,
while we are completing, our tran-
for
sition to
a
legal assistance
men
and
were
veterans
competitive economy. .famiites^M-1
service
or
their
298
THE COMMERCIAL & FINANCIAL CHRONICLE
Foundations oi
^
(Continued from page 271)
But it is still very far indeed from
Free
a
Treasury and partly through the
System, we have
Federal Reserve
given our Government more con¬
genuinely free economy. It is
trol over interest rates and the
hampered at a hundred points.
volume of money and credit than
Some of these are of minor im¬
a
portance, but others, such as labor
control,
credit
control,
foreign
trade control, security controls and
rent
controls, are of major im¬
portance. If America should fi¬
nally slide into that depression
which has been
widely ad¬
more
in advance than any of
predecessors, it would be ridic¬
ulous to blame it, as our British
labor friends and our own rad¬
icals are already blaming it (even
before it has happened), on laissez
fa ire or a free economy.
We are
absurdly far from either. What are
really threatening our stability are
vertised
its
the- major
of
some
controls that still
Labor
Let
us
look
controls in
government
encumber
us.
few of
a
turn, and
these
what their
see
effect has been and still is
on
our
First, let us take labor
control. It is impossible to say at
this time what revisions Congress
economy.
will make in
our
labor laws. What
has
had
ever
before.
These
great powers were granted the
Government
on
the
assumption
that they would be used to stabil¬
tion which threatens to become
have
strong appeal to a great
people just now. They see it
remedy for preventing great,
a
many
a
as
nationwide
strikes
in
essential
lines of production and in public
utilities. But its adoption would
be
dangerous step in the direc¬
of
a
controlled "and
regi->
a
tion
mented economy.
bitration assumes
board—or
ment
Compulsory
that
govern¬
"court"—is
pable of
knowing
"fair"
"right"
or
a
ar¬
ca¬
much
greater
"managed money," or about a
"compensated economy," or about
controlled economy, has declared
ever such a period of boom
that if
and
inflation
arrived
actually having
ment
take
would
the
would
controllers
the
are
and
long before this
matter
let
we
the Govern¬
now,
managers,
planners
as
in
hand.
interest
They
rate
rise
to
every case. Logic would compel us
to go on to fixing all wages by
governmental ukase.
The
mere
prospect of compul¬
arbitration, even as a socalled "last resort," means in prac¬
Government
that it becomes the first re¬
sort. Neither unions
would make
nor
managers
settlement if
they
felt that they could eventually get
a better one out of a governmental
a
board. Under such conditions free
collective
bargaining
would
be
destroyed.
A
real
revision
of
labor
our
and
for
ers
the National Labor
Rela¬
tions, Board, Congress should pro¬
vide fewer controls, less regula¬
continue
unsound &b o
r ro
wi
that
would not occur under a higher
interest rate. They create
by their
policies
own
it
becomes
a
n
g
situation in which
increasingly
danger¬
ous
to hold down the interest rate
and
increasingly dangerous to al¬
low it to rise,
fect
on
because of the ef¬
security prices and other
bank assets. One of the worst
pects of
as¬
cheap money policy is
the difficulty, once it has been
a
embarked
not only of re¬
versing it, or allowing it to come
to a halt, but even of
trying to
moderate it.
laws must take precisely the op¬
posite direction. Instead of more
controls, more regulation by the
Federal Government, more pow¬
authorities
to monetize the public debt.
They
continue to encourage speculation
sory
tice
upon,
Again, in the field
of foreign
foreign lending, we
have brought about, in the
very
midst of a boom and
inflationary
period, the greatest peace-time
trade
and
export surplus on record. We have
done this by having Government
tion, less power for the Labor
Board. What chiefly needs to be agencies, through the Export-Im¬
port Bank, make huge loans to
done by the Federal Government
foreign countries. Through the In¬
is n,ot to prohibit
strikes, but
ternational Monetary Fund and
simply to stop encouraging them.
International Bank, we are con¬
The Government does encourage
them through the
Wagner Act as
present drawn, and through the
present administration of that act.
at
Freedom must be restored to
em¬
ployers to discharge
workers on
strike and to offer permanent em¬
ployment to other workers to take
their place. It is not an accident
the
latter
has
inflation, until
reached- its
the part of everyone,
the solu¬
tions of bur labor problem lies in
les^ Government control and not
4in
more.
: v,
..
Credit Controls
The
solution applies in the
case of credit control. In the last
tw<*
same
decades, partly through, the
profits that ha3
subject of constant at¬
the
war year
extremely
dangerous stage.
prosperous year for the
1944
was
an
The remedy, once more, is the
remedy of a free economy. It is
not more control
production
other
and
and
over
the
over
the interest
volume
of
and credit, but less of it.
money
It
is
the
fundamental
Rent
costs
rial workers.
of
government controls, I
should like to consider the appar¬
ent outlook for
indefinite
an
con¬
tinuation of rent ceilings. Nothing
could possibly
be more foolish
than
the
imposition of rent ceil¬
ings
on
houses
and
apartments
templating
still
further
huge
foreign loans. Passing over the
fact that
large volume of these
loans is of very dubious sound¬
and that
ness,
take
a
we
are
eventual loss
of purchasing
an
terms
certain to
on
them in
and
the
credit
supply
are
turned
over
to government. For
government wants to take the
blame for bringing a boom to a
no
halt. No government in
power
wants to be held responsible for
the subsequent reaction. Therefore
it can only follow the
policies that1
tend to accentuate the boom and
the
It
must
necessarily
the volume of
construction
compared with what
it might otherwise have been. Yet
we
continue to pursue
idea
that
1921, the
have
gone
1932
Free
whole took
and
they
1933,
*pverwhelming majority
being called upon to pay
The natural result has been
they
The
as
compared to how
paid
workers
is
the
to
the
free
a
stock¬
greatest
economy.
duty of management to
make this clear to them. It is the
duty
of
both
management
labor to understand the free
omy
must
and
econ¬
if they are to know why they
keep it free. Only if they
loss
understand it
suf¬
survive.
a
we
out
are
beneficiaries of
It
can
a
free economy
Enterprise and the Future
(Continued from first page)
order he added, "You should tell
them that we oughtn't to let the
pebbles in our shoes stop us from
velop. I am of course speaking
of those European countries where
the will of the people finds free
expression.
Socialization is
that has
not
are
1940. This is the real secret of the
to get the "shimmy" out
■.
no
lose
a general term
clear limits. We must
sight
of
the
fact
that
our
■*'*'•
:
parties
"Ket" left
me
with
quite a lot
to think over and I
began trying
to figure out just how I. could
for
branded
would
have
been
socialist a generation
ago. Even before the war, coun¬
tries such as those of Scandinavia
the ground he had laid out
within the time limits of
cover
report has shown, that
using residential floor
space more wastefully. An average
of only 31 persons occupied every
10 dwelling units in 1945 com¬
pared with the average of 33 in
a census
we
job-holders
which by both
this
po¬
tf *one of< our esjrly streamline tlicies country are now accepted
trains.
litical
much smaller percentage of our
income for rent than before the
as
to
years ago
a
war.
can
up an
of only 9%. This
that
us are
prosperity
by reducing
corporate profits. And this belief
is in large part the result of the
holders.
of highest employment
payrolls, and the years of
lowest profits the years of lowest
employment and payrolls, i When
as a
that
maintained
means
average
of
be
deduction. from
a
and
wages,
only
years
|1931,
are.,
stockholders
going ahead." That completed the
subject as far as he was concerned,
rate of 150% greater and he turned to
reminisce about
than in the period from 1935 to
how he had helped us some dozen
the
actually
profits
much
and
in
was
statement of
a fact,
again, that the years
highest corporation profits are
corporations
in those years
greater than wages, that
corporate
It is
the
substantially full
was
highest—about 10%.;
Yet the great body of
labor to¬
day has been led to believe that
corporate
are
profits
a
1939. But rents
year
unemployment.
employment that the
actually be¬
companies
and to top management than
do to the workers.
of
it
ratio
of corporate
profits to national in¬
come
had
me
as
adopted socialized programs
without greatly affecting personal
this. agreeable evening. I decided freedoms. No
one can tell how far
to J attempt
it. in
broad
brush the present
experiments in social¬
strokes and if it is too
sketchy to ization that are now developing
hang together, I guess you will be in all countries of Western
able to fill in the gaps.
will
go. This is
in Britain.
Now it is true that I have trav¬
eled quite a bit
during the
Europe
particularly true
"shortage." It is caused
past
primarily by rent control itself.
The British Situation
six years and have been to a
this shortage has become in
good
The present program of the La¬
turn the basis for insisting that many countries during and since
rent control must be continued.
th^ war. War and the aftermath bor Government in Britain is re¬
housing
Yet
of
I
have
been
of
talking
of
the
free economy,
have said that the foundation of
foundations
a
are so
a
free economy is the free market
But there is something beneath
this;
there
without
cannot
is
itself
foundation
sub-foundation
a
which
this
exist.
is
the
foundation
That
people.
derstood.
The
workers
are un¬
of
this
roles played by wages
In the period l929 to
profits
194^
wages
and salaries, averaged '69.8%.
the
national
income.
of
it
is
difficult
therefore
ments to
to
direct
party itself will be when
it faces the general election three
a half years from now. It is
early to judge what the de¬
sires of the majority of the British
people will be. Certainly condi¬
and
Europe and particularly
Europe.
Drift Toward
Western
Corporate
a
ratio of wages, and salaries to cor¬
poration profits of approximately
the
Labor
com¬
to Western
In
sectors of
It is too early to judge
what the further program of the
generalize.
my
to. certain
economy.
too
Socialization
ap¬ tions within Britain itself and in
recognize and accept as a the world will vitally affect these
fact that things can never be the decisions of the British
-people-
Europe people
pear to
in... prewar
as
sense of values has
days;
Whatever the course will be, it
will be the free choice of the ^ma¬
Their
changed. I feel
that the one greatest urge is for
security. With the devastation and
dislocations that have occurred, it
jority of the; British people. Un¬
has been
necessary to expand the
functions of government in order
and
to
redevelop
or
doubtedly their decisions will be
affected by conditions In America
American
policies
toward
world
commerce.
,
continue the very
•-
At
the
present time there is
considerable thought in England
This has certainly been one of that
opportunity :and progress
the fundamental reasons for the should be secondary to
stability.
swing to socialization. But it is I have discussed this question with
not the only cause.
certain members of the
People crave
majority
security and people believe that party. They freely admit that
basis of life.
this
can
lective
be obtained through col¬
Thus varying de-j
their
progress as
of nationalization of; industry have been: instituted and also
varying degrees of control of the
economy by government. The ex¬
grees
tent to which socialization
panded
and
the
is
permanence
plans
lead to rapid
system of
free enterprise, but they point out
the
instability of our economy
action.
which
has
ex¬
of
ress
government controls are still mat¬
for the future to determine.
These decisions will undoubtedly
years and
how
our
led
to
our
serious depress
in the belief that their
stability; ^
plans
one in
Britain is
preparedeUhsrfoqsly to
give up personal freedoms, that
are
in-< is.
it is not the $14 ternational economic "policies de-
under
will attainrr
be largely affected by what hap¬
pens in the United States in the
;next few
may not
•ri6hs.rThey arermBikg td forego
a; considerable degree jot prog¬
ters
profits averaged 4.9%. Here is
14 toT. And yet
stricted
have uprooted the lives of
over. Conditions
different in different areas
will
same
A Free Economy Benefits All
A free economy will not be pre-i
served unless the reasons for it
advantages of it,
that
I
deeper
economic edu
cation of the great masses of the
and the
war
people the world
•
t'raditiohally
British.
:
There
tendency, however^ to accept
some loss of economic opportunity
a
•
greatest
income
their annual
reports,
showing how much they paid out
The nation's income payments are
running at
of full
of
recent
to the
the
of greatest depres¬
A dozen
of the 21 years from
1909 to 1929
industrial
more
got
was
failure of business itself to
tell
labor the truth. It is the
result of
the failure of most of the
great
corporations to print a - simplified
survey it
was found that two-thirds of the
workers interviewed
rental
new
worker's
average
In a
pay out
built.
labor
had
ever
sion and
that the
mean
mass' unem-
history. The year '
1932. From 1909
to 1929 the lowest
profits came in
taxes
They
facts.
tain of all ways of preventing such
houses and apartments from ever
extensive
rates
the
or
lieved
being
our
percent of the national
investors, the stockholders, are
merely the residuary legatees. Yet,
while these are the facts,
they are
hot at all the general public's idea
not yet built. That is the most cer¬
reduce
greatest
1944, .found that
the employees
got 61% of the were years of
total, and that after deduction of employment. It
Controls
As another example of the bad
effect
which
has
for
rate
the,
pioyment in
in
corporations. Yet the Department
of Commerce
in estimating the
distributive shares of all corporate
power, this country, the so-called underpriv¬
foreign lending is the ileged of this country, will destroy
exact opposite of the
policy that the free economy Unless they un¬
that strikes have more than tripled
we ought to be
following. It adds derstand that this economy is not
since the passage of the Wagner
to our inflation at home.
It adds constructed in the special inter¬
Act. That and other laws have
to the boom. It must
now taken practically all the risks
intensify the ests of a small wealthy group but
ultimate reaction.
in the interests of everybody
out
of
striking. Why shouldn't
These bad credit control
unions strike, when they have ev¬
pol¬ above all of the workers and o:
icies are not mere accidents.
erything to gain and practically
They the so-called underprivileged 1
are not
merely the result of hav¬ themselves. Whatever plausibility
nothing to lose? Aside from re¬
moving
the
special immunities ing the wrong people in charge the recent Nathan report may
of
Government
credit
from labor unions, and subjecting
control. have had, it owes entirely to the
them to the same common law They are practically
inevitable profound misconceptions that ex-i
when the management of interest 1st in this
that forbids violence and coercion
country of the relative
on
corporation
tack. The
i
most
this policy.
The only way in which rents can
inflation from getting out of hand.
permanently be brought down is
Yet instead of
doing anything through increasing the supply of
like this, the
Treasury and Fed¬ new buildings. Yet by rent ceil¬
eral Reserve authorities continue
ings on new buildings we reduce
to hold the interest rate at fan¬ the
supply of the very thing we
tastically low levels. The Reserve are most eager to get.
^
Banks agree in advance to take all
Even the rent ceilings on exist¬
Government
certificates
offered
ing houses and apartments have
at a rate of % of 1%.
They do this begun to bring distortions in the
frankly
"in
order
to
prevent economy. Because of lack of profit
short-term
interest
rates
from incentives rental
property is being
rising above the level the Gov¬ and will be allowed to deteriorate;
just what the
and of ernment is now paying." Through
this combination of
policies the
a Government
But if
board could really know what the
fair or right wage was in one
case, it could know what it was in
tend to accentuate
Everything
one.
that has been written by the ad¬
vocates of these schemes about
wage is,
fixing; it.
of
been
a
discourage excessive borrowing.
They would stop adding to the
volume of money and
credit, and
sory arbitration. The proposal of
might even reduce it, to keep the
compulsory arbitration seems to;
is most to be feared is that it may
move in the direction of compul¬
Economy I of wages and salaries, but the $1
there was
duty of a
ize the economy. They have been
eft for net profits 9%. In that
government to keep the currency
used, on the contrary, to unsta- sound by
preventing dangerous year, the employees of the corpo¬
bilize the economy. Here we are,
increases in its supply and by rations got from them between
in
a
six and seven times, as much as
period of unprecedented
maintaining its convertibility into
boom. Here we are, with that full
gold. Everywhere in the world we was available for stockholders.
employment which is the tire¬ are so far from that ideal
What do these figures mean?
today
lessly reiterated goal of all our that the
They mean that the primary ben¬
very statement of it now
eficiaries of the great
present-day reformers., Here we sounds chimerical.
corpora¬
tions are the great
are, in the midst of a great infla¬
body of indus-
a
Control
at
it
Januarys 16^1*>47
fered
-
Volume
Number 4560
165
THE COMMERCIAL & FINANCIAL
CHRONICLE
to the individual in the
gainfully employed and with al¬ of • government
taining
American
most wartime volume of
their
:
collective
hope of at¬
security/.
It is important for us to under¬
tion,
we
stand the development of opinion
towards us since the end of the
fore.
But still
At the close of the
war.
war
enjoying
standard of living than
there is
produc¬
higher
ever be¬
are
a
wide
un¬
certainty.
peo-
There are, of course, certain ob¬
'ple were concerned that we might
'return, as we did after the last vious conditions which lead to
po¬
litical settlements. They knew that
'our participation was essential in
the development of a just peace
'and
in
the
protection of the in¬
They recognized that
the. strongest nation in
terests of all.
*we
were
*the world
and
they had faith in
'the -justice
of our motivations.
They believed that we could bring
security to international affairs.
:
This fear that we might return
"to political isolationism has been
relieved
result of
a
as
strong
our
^support of the United Nations and
of the principles of its Charter in
connection with all, settlements.
The fact that the Administration's
policies have received bipartisan
.support has given widespread re¬
I want to take this op¬
assurance.
portunity, while speaking in
Michigan, to express my personal
'
/appreciation for the major contri¬
We have developed remarkable
productive ability. In these bril¬
.policies and for his tireless efforts liant accomplishments the auto¬
in working with Secretary Byrnes mobile industry has made a lead¬
.at international conferences. Our ing contribution. This has served
^position has been widely ac¬ us well in peace and war. Never¬
claimed by, and has brought hope theless, it is a fact that in the
to, the overwhelming majority of past we have not attained a rea¬
sonable degree of stability. With
:the people.
;berg in bringing about bipartisan
.
on
our
international
our
tremendous
productive
Situation in U. S. of World-Wide
ity,
we
Concern
our
affairs in such
give
later
cerned
over
'different
people
became
con¬
the United States for
ihey have become
would fail
we
to
concerned that
attain
stability
economy—that we would
•go through periods of "booms and
-busts." What happened
here in
the early thirties and the effect
our
It had
world economy
on
is still
tyivid in their minds.
*
They
the
realize
the
American
•world
influence
economy
of
the
on
They have great
respect for the enormous produc¬
tive ability we showed during the
"war.
economy.
The
'about
United States
half of
has
now
the industrial
pro¬
duction of the world. They know
that what happens in the United
States will vitally affect the econ'omy of their own countries. They
Recognize that it would be diffi¬
cult for them to attain stability in
their own countries unless there
is
stability irt the United States.
They need our help for recon¬
struction and they realize
that
world
trade, which is
so
important
to them, can only be expanded to
"the-extent
needed,
only
if
the
United States plays a leading role.
*
What they have heard of con¬
ditions in the United States dur¬
•
ing the past year, with
inflation
.and
price
our
major
strikes,
Jias added to their concern. Many
people have confidence in our
strength and our ability to work
.
out
1
are
our
.
affairs. But
our own
worried
that
even
they
readjust¬
our
ments at home will affect
our abilr
ity to have a, useful influence in
the
development of the wqirld
'economy.
Their own economies
are
so ' disrupted
that they are
!
;
afraid
their
of
a manner as
to
a
ability
to
work
The Challenge of Free Enterprise
If
we
successful
are
in
attain¬
ing stability with free enterprise,
our success will have great influ¬
ence
on
the
course
other countries. Our
of
events
success
in
would
without
strong and stable United States.
fluence decisions regarding the re¬
tention of barriers to our trade.
Domestic
Concern Regarding
do
much
to
reduce
the
marked
swings in. business activity which
have characterized our history.
panded and be made more gen¬
erally and fairly effective.
As
ence
Future
a
result of our
our
people
about
here
the
are
future.
also
The
concerned
reconver¬
sion front "wai/ to peacetime pro-
idustfon has been, with all its 4ifc
fieultieS, -''a tremer\dou^ |ic.hieyejnent.
With 57 million
people
past experi¬
government has greater
to
oh
get
promote
their
minimum. The demand for
is. great and it would
only be
the inability of the consumer to
buy that would limit demand.
Urges Price and Wage Restraints
Industry is asking labor to show
restraint in demands for increased
wages,
in
production
order
may
justment of
real
crease
justify
that
increased
assist in
prices
and
the
ad¬
thus
in¬
this
include
American business
assistance
to
wishing to im¬
to realize that
we
not isolated from the world.
a
part, and
We
which
a very
we
construction progress,
emergency
pressures will diminish, but the
need for American products will
still be great. With our tremen¬
dous productive capacity it will
be
the
for
automobile
and
resources
industry have
our
expanded
economy.
Aside
■
from
welfare
we
interest
in
our
have
an
the
domestic
own
even
broader
development
of
world commerce. Peace and
pros¬
perity have not been coupled
euphonious
alliteration.
as %
There
is
and indivisible link between
peace
and prosperity. Our international
political policies designed to se¬
peace can be successful only
if they are based on sound and
farsighted foreign economic pol¬
cure
icies. A prosperous world is the
best insurance of a peaceful world.
With
the great power of the
economy
we
have a
unique opportunity in history, in
our own enlightened self-interest
to help other nations to help them¬
American
selves. The world desires not
only
American goods but American en¬
gineering
and
American
tech¬
niques. Industrialization of back¬
ward countries has increased their
participation in world trade and
enlarged markets for American
exports.
can add
American free enterprise has a
well-being of great opportunity to take leader¬
taking in exchange ship in expanding world
prosper¬
wealth
by
our
and
exports those products of
foreign countries which we can
ity.
profitably
America has
use
without
interfer¬
We have tremendous oppor¬
tunities
at
home
and
abroad.
always seized its op¬
production. portunities even though the road
American capital has in the
past has not been easy. Let's not for¬
invested abroad to develop sources
get that there have always been
of raw materials which we re¬
pebbles in our shoes. As Kettering
quire. Government should encour¬
says, "Let's not let them stop us
age private investment abroad for from
going ahead!"
ence
with
domestic
Mackey Predicts High
Coffee
consumption
in
the
United States in 1946 will approx¬
imate the all time high of
26,555,000 bags reached in the pre¬
vious
desire to expand as far as
practicable our markets abroad.
our
Mr.
year,
C.
A.
Mackey,
President of the New York Coffee
and Sugar Exchange,
Inc., pointed
out in his annual
message to the
membership on Jan. 9. This
creased volume of business is
pected
to
panded
market
Since
sumed
in¬
ex¬
find
use
reflection in ex¬
of the coffee futures
during the coming year.
trading was re¬
on
Oct.
21, the futures
postwar
market has shown substantial
ac¬
tivity.
Mr.
Mackey was hopeful for
early resumption of trading in the
sugar futures market.
He cited a
recent
Bilbo Leaves Senate
Fight Temporarily
A compromise was the result of
efforts to bar Senator Theo¬
the
dore G. Bilbo
(D.-Miss.) from sit¬
ting in the Republican-controlled
Congress, which followed a
report of the Senate War-Investi¬
gating Committee, alleging, it is
stated, that Senator Bilbo misused
80th
his office for personal gain in
dealing with war contractors. The
disagreement between Republican
Senators and Southern Democratic
of Mr. Bilbo, which
supporters
threatened
of
the
to delay organization
Senate, was temporarily
disposed of by withdrawal from
Washington
of
the
Mississippi
Senator, who left for New Or-,
leans to undergo a throat
opera¬
tion,
according
to
Washington
by Clinton P. Associated Press advices on Jan. 5.
However, 69-year-old Senator
Secretary of Agricul¬
statement
Anderson,
ture, that "the reestablishment of
the sugar futures market for trad¬
Bilbo assured his foes that if he,
lived he would "be back here with
ing
my
is
in
one
1948
of
and
later
deliveries
objectives."
In anticipation of early renewal
of
sugar
are
great part,
of the world economy. The man¬
in
to
America
and
not of domestic concern alone. We
are
the
Industry can
position, only if it
policies.
come
of
long-range development. During been one of
the important causes
this period,
however, unless we for many of these
developments
increase our use of foreign
goods abroad. Insurance of raw material
and
services, foreign countries supply is of increased
importance
will not have the
ability to con¬ because of our reduced national
wages.
shows equal restraint in its
pricing
have
these purposes, The requirements
our
futures
-
trading,
Mr.
Mackey reported that the Ex¬
change already has created a new
sugar contract to be known
the No. 5 Contract. "This con¬
tract will greatly enhance the use
of the
same
Ferguson (R.-Mich.), a leader of
the fight to bar him, is reported to
have
commented:
"I
certainly
hope Senator Bilbo lives."
Senator
raw
as
fighting clothes on," the
advices continued. Senator Homer
Robert
A.
Taft
(R.¬
Ohio), Chairman of his party's
Steering Committee, told report¬
Exchange," he said, "by all ers no further action will be taken
until Senator Bilbo can return
of the sugar
and
industry."
members
Mr. Mackey reported that the
Board of Managers voted to con¬
tinue its membership in the Na¬
tional Association of
Commodity
Exchanges and Allied Trades, Inc.
during 1947. This Association, he
explained, has played an active
part in the elimination of many
a
hearing
the
can
charges
be held
warrant
on
whether
permanent
and final ouster.
Britain Draws
Great
Britain
on
U.S. Loan
drew
upon
her
$3,750,000,000 loan from this coun¬
try for another $200,000,000 in
of the controls on
commodities, spending funds as the year began,
particularly grains, ".
construc¬ Treasury reports showed on Jan.
tive work done in one
commodity 6, it was noted by the Associated
..
is helpful to all commodities ham¬
Press
and
pered by regimentation," he said.
Which also stated:
have
great interest in the expansion of
With the resumption of trading
Thus,
for
for
world
world
our
own
welfare
prosperity,
commerce.
we
in coffee,
memberships in the Ex¬
accounts
"This"
from
Washington,
draft, paid by the Treas¬
ury on Jan. 2, brought
total use of the credit to
Britain's
$800,000,change advanced in 1946 from a
out these
000.
cise an influence in
preventing objectives depends upon one fac¬ low of $4,000 to a high of $6,000,
"The $200,000,000 also sent this
wide swings in business
activity. tor—-the expansion of our use of Financially the Exchange's posi¬
country's deficit on the first op¬
Among the tools in, the goyern- goods and services of other coun¬ tion has
been improved consider¬
erating day of 1947 to $230,913,549
ment 'kit are fiscal and
monetary tries. We can, and I believe we
j^licie5-4thQ powbt' to set tax should for a time, pursue a cour¬ ably by the active real estate for the fiscal" year,. which ends
next June 30. The British are ex¬
rates, prevent excesses of. credit ageous lending policy, through market, capital account having
pected to draw another
$400,000,expansion^ and .contraction, and both private and public
been increased to a total of
agencies,
$1,* 000 or $500,000,000 before the
end
determine the volume and
timing to assist other countries to buy 077,000.
of June."
knowledge
I come home to find that, in
spite of the prosperity that exists,
a
cars
participate in
give encouragement. It would be
world commerce will
vitally affect
an
example to people of other
other countries and in turn our¬
countries to retain the maximum
selves.
of the values of free enterprise
Other
countries
today
have
and personal freedoms.
great need for many products of
We can not, of course, elimi¬
industry and agriculture which
nate all fluctuations, but we can
cap only be obtained in the United
avoid serious depressions. We can
States. "As rehabilitation and re¬
economic catastrophe. Our social
security programs should he ex¬
affairs
to
ner
These concerns will in fact in¬
own
and
gent/necessity for holding prices port foreign products. We
labor, however,
It is clearly the challenge to the cannot do it
all. During the past
present ; generation
to
develop |ix months about 70% of the in¬
within the framework of our free crease in the
cost-of-living -index
society and our system of free en¬ has come from the increase in
terprise a stable economy that prices of food and
agricultural
gives both security and a high ex¬ commodities. No doubt when
the
panding standard of living to all emergency pressure of world de¬
of our people.
We are the only mand for these products declines
country that now has the ability prices will come down. The farmer
and the resources to accomplish is entitled
to
protection in the
this.
The engineering profession
price of his product, but it is to be
has made possible our productive
hoped that this support will not
ability. The scientific knowledge be carried beyond a reasonable
and
engineering techniques de¬ basis in keeping farm
prices in
veloped during the war add great¬ balance with those of
industry.
ly to our potentialities.
But sci¬
There is increasing understand¬
ence
and
engineering
directed ing of the interdependence of each
only to production will not solve section of our
economy and I do
our
social problems. In the pas'; not feel
that it is an idle hope that
we have seen production checked
enlightened self-interest will af¬
by inability to find markets in fect the actions of each
group in
spite of the existence of great contributing to stability and a
need. Surely if we apply the ge¬
proper balance in the economy.
nius that has created our produc¬
tive capacities also to the goal of
U. S. Responsibility in
economic stability and of insur¬
World Economy
ing security to all of our people,
But our economic problems are
much can be accomplished.
We can in any event give security
to the individual against personal
their
that I need impress on
you the ur¬
Business
a
but
5
should be able to handle
They have, seen,
reasons.
ias returning to our traditional way
'of life under free enterprise and
in
abil¬
reasonable degree of secur¬
ity to all our people while retain¬
ing our historic progressiveness.
'
But
tionary pressures can be substan¬
tially diminished if these tools are
used wisely and at the
proper
produpts—to
feet
create
tained.
bution made by Senator Vanden-
.agreement
curity
programs
also
exert
a
stabilizing influence on business
activity. Inflationary and defla¬
The
concern.
difficulties
re¬
sponsibility in international
needed
299
tinue to buy from us and to
repay
management-labor time.
our loans.
But
uncertainty.
government
cannot
and
The American proposals for the
There is the question of what will should not attempt to do it all. If
International Trade Organization
happen when demand for con¬ we are to attain stability in a free are
designed to break down trade
sumer goods pent up by the war is
society, individual groups must barriers, as far as
possible, in all
met.
share
responsibility
and
play countries and to encourage multi¬
I
cannot help but feel, how¬ their part
through greater knowl¬ lateral commerce. We must do our
ever, that there is something deep¬ edge/of
their- own enlightened part to make this a success
by our
er/ The war ^sv^|bcted;.4iSi^ self-interest, -Certainly
own import
manage¬
policies through the
well as the peoples, of other coun¬
ment^ can, continue to work to¬ proposed reciprocal tariff agree¬
tries. Here, as abroad, there is an
wardife/o'egularization of em¬ ments. Unless we
encourage and
increased ;■ desire
for
security. ployment ifi seasonal industries.
expand our use of goods and ser¬
Clearly, we are unwilling to make Before the war the automobile in¬ vices of other
countries, our whole
the
choice which is now being dustry made an
important contri¬ foreign economic
program
will
made in Europe, that is, to trade bution toward
regularization of collapse.
opportunity for security.
I feel employment by arranging to hold
The automobile industry is one
that it is of-the utmost signif¬ itsrannual show in the
autumn. of
our
great export industries.
icance that the American people
in all industries Markets for
American automo¬
in the demand for security have should.
be,giyen to the regulariza- biles abroad
depend only upon the
no
intention ?jof giving up their
tiop^plvseasphal employment.
ability of other countries to buy.
system of free enterprise.
/ The/ automobile industry has I
hope, therefore, that the auto¬
Confidence
in free
enterprise bgd its brilliant success in the past mobile
industry will give special
has been shown by insistence that
feecausp/^its ur£e to increase consideration and support to gov¬
government
withdraw
rapidly volume. fry/.reducing prices. I rec¬ ernment
policies to further sound
from wartime controls. We want ognize the.,
difficulties the auto¬ import programs. The
Department
both
opportunity and
security, mobile industry now faces with of
Commerce is expanding its ac¬
and believe that both can be at¬ increased costs and I
do not feel tivities to
-war, to isolationism. They earnest¬
ly hoped that the United States
"would take its full share of
expenditures for
public works. Social se¬
and
,
power
to
exer¬
Our
ability to
carry
THE COMMERCIAL & FINANCIAL CHRONICLE
300
Thursday, January 16, 19471
wmTrn
the anticipated effective date,
all underwriters and dealers
of
SEC and
Free Securities Market
a
(Continued from page 269)
But I have picked up
some thoughts that may be of in¬
mission to substitute its judgment
for that of the industry. No one
terest to you,
power.
•
?**v.
montns.
the
at
Commission
wants
of
investors,
issuing
to
companies,
Any registraint
and underwriters.
It
this
to the attention of the
came
who may be invited to participate
in the distribution of the security.
wants to be sure that an
Background of Securities Laws
Commission in 1945 that, in some
Seeks No Further Powers
"
Even at the danger of
being too
-elementary, I think it is not inappropriate at this particular time
for us to consider briefly the back-
!^round of the Federal securities
You know that the Congress
laws.
-has declared that securities trans¬
actions
have
be
to
regulated to
protect our national, economy and
to insure the maintenance of fair
•and
honest markets in
securities.
This is now an accepted axiom in
,v
lour economic thinking. While we
may differ as to methods, I think
it is safe to say that no one with
'any interest in the public welfare,
or
the securities industry, wants
to go back to the bucket shop, the
boiler
used
room or
what
we
in Kansas
to call the
"pencil bandits."
his sav¬
securities, he must be
If the investor is to put
.
ings
into
assured that reasonable standards
of honesty and
adhered to by
disclosure will be
those who are of¬
securities, and by those
fering
whose business it is to sell them.
He must also know that once he
It
is
distribution
instances, red-herrings
;
made,
be¬
ing circulated which were so in¬
complete that the deficiencies in
them rendered them misleading.
To correct, this evil the Commis¬
were
hope that the main¬
tenance of the principles of full
disclosure,
and
the
attendant
sion resorted to the policy of re¬
duties devolving upon exchanges,
fusing acceleration of the effec¬
brokers, and dealers, will be suf¬
tiveness of registration statements,
ficient to keep the securities bus¬
where materially deficient and
iness upon the high plane where
misleading red-herrings were cir¬
it is, where it belongs, and where
culated, until the Commission re¬
it must remain. I believe that ad¬
ceived satisfactory assurance that
herence to these principles will
corrected information had been
achieve this purpose. All in all,
sent to the persons who got the
these laws make possible the ful¬
red-herring.
Some underwriters
fillment of the aims of the legiti¬
have blamed the dwindling dis¬
mate dealer. I am quite sure that
tribution of red-herrings on the
the Securities and Exchange Com¬
adoption of this policy. They say
mission, and the members of the
they are reluctant to circulate
staff, feel exactly as I do. None of
red-herrings because they may be
us wants to go any further than
considered materially misleading,
is necessary. All of us are anxious
and thus delay acceleration of the
to see the success of the present
effectiveness of their registration
scheme
of
things,
with
such
statements. But in all fairness it
changes as are inevitably required
must be remembered that under¬
by experience and are in keeping
writers would never have such a
with its spirit and purpose.
problem if they fulfilled their
Under the Securities Act any
primary obligation and filed well
security can be offered for sale if
considered, accurate, and complete
it is effectively registered and the
statements in the first instance.
my
bought them, his investment whole truth is told about it. But
a
registration
statement
will not be jeopardized by fraudu¬ filing
with the Commission does not get
lent or manipulative practices in
the information to prospective in¬
the securities markets. These are
objectives of the Federal securi¬ vestors, or even to securities deal¬
ers—as many of you have had an
ties statutes.
opportunity to learn. Not even the
The purposes of the Securities
provisions which require the de¬
Act of 1933 are to provide full
livery of a prospectus assure pur¬
disclosure of the character of se¬
chasers that they will get the in¬
curities sold in interstate com¬
formation
before they buy. As
merce and through the mails, and
you well know, it is common prac¬
to prevent frauds in their sale.
Disclosure is obtained through fil¬ tice, after a registration statement
is effective, to take the order by
ing with the Commission registra¬
tion
statements
which
contain telephone and then deliver the
prospectus with the confirmation.
pertinent information concerning
the issuer, the securities being of¬
After a registration statement is
fered, the use of the proceeds, the filed under the Securities Act you
■financial condition of the com¬ know
there is
a
"waiting" or
pany, and other data necessary to "cooling" period before it becomes
arrive at an informed judgment effective.
It was
originally 20
whether to buy the securities. The days. This was to allow time for
Act requires the delivery of
a public scrutiny of the information
prospectus to investors to whom in the statement. While interested
the securities, are offered or sold. persons may come to the Commis¬
This prospectus must contain the sion and examine the statement,
important facts in the registration or even get copies of it at nominal
statement, including balance cost, it is obvious that this is not
sheets and earnings statements.
the practical answer to making
the information generally avail¬
SEC Does Not Approve Securities able. Other ways of disseminat¬
It was never intended that the ing the information during the
"waiting" or "cooling" period had
agency which
administered the
has
We
been
the
at
Commission
working
methods
find
accomplish
to
effective
the dis¬
to
semination of information
curities
have
in
Se¬
Act
registration
state¬
ments during the "waiting" pe¬
riod. I am sure that you are fa¬
miliar, at least in a general way,
with this effort. Many of you have
sent in your comments and sug¬
gestions
on
various
proposals
which
few
submitted
we
months.
found your
The
one.
I
can
in
help
very
problem
was
An
effective
the
last
that
say
we
valuable.
must
encourage
the dissemination of
such information without foster¬
of
offers to
buy the securities before the Reg¬
istration statement is effective.
must
set
what
information
a
It
practical standard of
be
can
copies
of
before
may,
them, obtain
adequate
an
will
be
distributing
opinion from the
Commission's staff asLto the ade¬
quacy
of the proposed
Of
tion.
copies
not
be
condi¬
the distribution of
in violation of Blue Sky
Laws.
To be sure that the prospective
purchaser does not make his de¬
cision to buy on the basis of mis¬
leading information, the Commis¬
sion must retain the
policy of
fusing
of
acceleration
ness, where
information
until
re¬
effective¬
materially misleading
has been circulated,
corrected
information
has
been sent to those persons receiv¬
ing
the
This will
to
ments
The
and
underwriters
their
registration
carefully.
Rule
circu¬
was
whether
it is accomplishing its
You may be sure that if
practical experience indicates that
changes in the Rule are necessary
purpose.
effective, the Commis¬
willing to
sion will be ready and
make such changes.
The Commission feels
sure
that
dealers will welcome this
attempt
to see that they receive copies of
a
form of prospectus containing
substantially complete informa¬
tion a reasonable period of time
before they may be asked to par¬
ticipate in the distrbution of the
security.
Getting Information to Investor
This brings us to the very im¬
portant—perhaps
I
should say
"all-important"—point of the rela¬
tionship between the dealer and
his customer, the investor. All of
us know that if the objective of
the
Securities
Act
is
to
be
at¬
lated by persons interested in the
eventual sale
of the securities;
tained, the information in a statu¬
tory prospectus should reach the
and they must be assured that prospective purchaser so that he
circulation of
such
information can make an informed judgment
will not be construed as an at¬ as to whether he wants to buy.
tempt to dispose of the security When I say reach him I mean
before the registration statement more, of course, than simply get¬
is effective.
ting it into his hands.
*■
Securities Act should have power
to substitute its
judgment for the
•judgment of issuers, underwriters
dealers in determining whether
•or
■m
an
issue should be offered or sold.
The Presidential message recom¬
mending
Congress
the legislation to the
said that the Federal
Government should not take any
action which
might be construed
approving or guaranteeing that
newly-issued securities are sound
as
in the
be
sense
that their value will
maintained
a
does
not
that they will
or
The
profit.
earn
approve
or
Commission
disapprove
Securities. And, let me assure you
that no one at the Commission
wants the power to
decide what
Securities may be offered or sold,
hor at
;'f
•
v
' -Cl,
what price.
P'
■■
■'
«
«
.v.
..
±*
•
*•.
...
The purposes
of the Securities
Exchange Act of 1934 are to pre¬
vent
unfair, manipulative, and
fraudulent practices in connection
with trading in outstanding secur¬
ities, to prevent the excessive use
of credit in security trading, and
to provide truthful and adequate
information concerning securities
listed and traded
on
national
se¬
curities exchanges.
■-
3
£"*'*•<'•
;:/V
,
see
his problem, to
.
his questions, and to
available information
him
will
these
answer
ques¬
Re expects from his dealer
intangible
values
which
the
service
fessional.
but important
together constitute
rendered
by
a
pro¬
It would be easier to
ignore the
fulfillment of these expectations
if the customer
bought merchan¬
dise which he
consumed, or if he
a transient whom the
dealer
were
rarely expected to
see again.
But
know that the security is not
consumed. Whether it appreciates
we
depreciates in value the cus¬
always remember where he
bought it.
or
tomer
,
Dealer Must Earn Customer's
n
Good Will
V
If the dealer's business is to>
have that solid foundation of good
will on which every successful
business rests, it must be earned
by patient and intelligent assist¬
ance; and the customer's trust and
confidence must be justified.
You in the industry are
being
constantly reminded by the exi¬
gencies of day to day business,
that the
of the securities
success
industry depends, in great part,
on
public confidence. The minithis
for
standards
mum
confidence
are
maintaining
contained
in
the
principles of full disclosure
honest trading embodied iri
the Federal statutes. They make
it possible for -the legitimate deal¬
and
build
to
er
a
successful
business
and at the same time render ser¬
vice
to
the
investor.
fundamental
These
are
requirements.
The
standards embodied in the statutes
are
the least that any
would want to follow.
The
legislative
which
not
these
rest
on*
can¬
be whittled away
if the in¬
remain firm and
we are to maintain
free market in America.
must
always be
an
investor and
There
effective legis¬
lative sanction to make
the
you
foundation
standards
dustry is to
strong and if
a
of
that
sure
the conforming
majority in the industry
are pro¬
tected from the renegade few.
You may be certain
that
we
at
the SEC recognize the importance
integrating our effort with
nancial confidant and guide. When
years. We have a long-established
6, 1946, after studying the investor is wondering "is this
practice of consulting with those
the problem intensively and in¬ security for me?" it is the dealer
The "Red-Herring" Prospectus
who have an interest in the effec¬
tegrating the many valuable sug¬ to whom he often turns for help
Shortly after the Securities Act gestions made, the Commission in understanding the extensive tive functioning of the Acts which
we
administer, and we always
was passed, inquiries were made
adopted Rule 131. This Rule pro¬ data found in all prospectuses; to
your
suggestions
and
about how far underwriters could vides that sending or giving any precipitate, from the many state¬ welcome
comments on matters related in*
go
in
circulating
information person, before the registration ments and figures, the answers to
any way to the work of the Com¬
about a proposed offering of se¬ statement
becomes
effective, a his questions. It may mean tak¬
mission.
Fortunately, nearly all
curities
before
the
registration copy of the proposed form of pro¬ ing the prospectus page by page
statement was effective.
Before spectus filed as part of the regis¬ and explaining and simplifying underwriters, dealers, and brokers,
realize that cooperation
is the
the Act had reached its first birth¬ tration
statement, shall not in it¬ whenever possible. The informa¬
most effective way to achieve our
day, the opinion was expressed self constitute an attempt to dis¬ tion he needs is nearly always
common goals.
that underwriters could circulate pose of the security in violation of there.
In what I have said this eve¬
the offering circular itself if it the
Issuers and underwriters, and
Act, if it contains a specified
were clearly marked to
indicate red-herring legend and substanti¬ their counsel, should try to state ning, I hope that I haven't givea
the impression that we think that
that no offers to buy would be ally the information
required by the facts in a prospectus so sim¬
accepted
until
the registration the Act and the rules and regula¬ ply, and so concisely, that every¬ the millennium has arrived, and
that there is nothing left to be
statement became effective. This tions. The offering price and cer¬
body can read and understand it
done to have a Utopia in financial
marking, in red ink, across the tain other information dependent without assistance.
We, at the
circles. Of, course, we at the SEC?
proposed form of prospectus gave upon the offering price may be
Commission, are doing what we
it its name of "red-herring." The omitted. The
have no such illusions. We ,rec¬
copies containing the can to make this possible. We have
practice of using red-herring pro¬ legend and information necessary undertaken a
ognize that there are many par¬
program to simplify
ticulars in which rules, regulations
spectuses under the Act developed may be sent out as soon as the our forms.
Our staff is always
and practices can perhaps be im¬
as a result of this opinion.
registration statement is filed.
available for conferences with is¬
proved. To that end, we constant¬
and
In 1940 the Act was amended
You will remember that under suers
underwriters, before
ly want to work. As I have men¬
to give the Commission power to Section 8 (a) of the Securities Act and after registration statements
accelerate
the
effectiveness
of the Commission, in -determining have been filed. We have repeat¬ tioned, we have made changes
within the last few weeks which
registration statements, after con¬ whether to accelerate the effec¬ edly urged the use of a concise
we believe will be helpful.
Just
Unfor¬
tiveness of a registration stated and readable document.
sidering, among other things, the
a week ago today we took what
is
adequacy of the information re¬ ment,
required to
consider tunately, I'm afraid our efforts in
we hope is a long step forwardl
specting
the
issuer
previously whether adequate information re¬ this respect have not been gen¬
in
simplification of registration*
available to the public, the public specting
the
issuer
has
been erally successful. In practice, as
forms.
interest, and the protection of in¬ available to .the public. In con¬ you know, the prospectus is too
vestors." You all know that the sidering requests for acceleration frequently
an
almost complete
Suggested Changes in SEC
Commission follows a liberal pol¬ it will consider whether adequate copy of the text of the registration
to be found.
This Act fills
many of the gaps left by the Se¬
curities, Act, and makes it possible
to control practices which, un¬
checked, could-devastate the se- icy in accelerating the effective¬
% curities markets. *'
ness of registration statements to
v.'? Here, again, the right of super¬ permit the prompt offering of se¬
vision given to the Commission by curities after omitted information
the; Securities Exchange Act does has been supplied, and necessary
not include the power to dictate corrections have been made ^ in
business policy. Neither the Se¬ the registration statement.
This
curities Act nor the Securities Ex¬ policy represents a practical com¬
change Act empowers^the Com-»! promise to reconcile the interests
-
The dealer is frequently his fi¬
Rule 131
show
which
his dealer has taken
to
who
state¬
adopted for a
trial period of six months.
Dur¬
ing this time its operation will be
closely studied to determine
to make it
time
understand
misleading information.
be no hazard, however,
issuers
prepare
the
those
will
dividends.'
pay
grocer.
He wants more
the merchandise. He wants
to feel that
tions.
upon
will
corner
than
the; granting of
course,
acceleration
tioned
fulfilled,
distribu¬
difficult
a
solution
ing the solicitation
uderwriter who
or
if
The customer expects more from
his securities dealer than from the
of
On Dec.
.
dissemination
has been
made of
copies of the proposed form of
prospectus
new
Rule.
as
permitted
by
the
What constitutes ade-
■^uate^iss6nUh$tfoiR^j
*
Question of factvin
eaich 6ase;:
However, it would involve
as
a
minimum the distribution of cop¬
Statutes
statement.
In
the
meantime, the investor
frequently relies on the dealer's
assistance. It is part of the dealer's
professional responsibility to bring
light and understanding to his
he can. It is
responsibility;
customers .whenever
more
ies,- a reasonable Rime in advance ityIsl
than
just
a
It
has
been
suggested
changes should be made in
of the
Some
,
that
some
provisions of the statutes.
these suggestions have
of
comefrom the > industry r whiles
others have originated with us at
the Commission. Day to day ex.
:#ich, periencfe 3ias iaught
us
all man^R
Volume 165
things
with
dealing
about
THE COMMERCIAL & FINANCIAL' CHRONICLE
Number '4560
-
the
situations which arise.
I
say—and
can
want -to
it
say
real
a
\
Of the
meas¬
exist.
to be able to obtain sufficient in¬
the
formation
tions
and
which
reach
to
will
solu¬
fully
more
ac¬
who
First,
investors
those
and
make
to
adequate
securities.
Second,
of
appraisal
an
investors must be given assurance
that the securities markets will
ities
not
Exchange
of
purpose
and at the
time will make compliance
them
as
practicable and
same
with
•workable
as
Act,
done.
be
can
ihappy to add that
we
I
am
have found
those of the industry from whom
we have heard, evidencing a deisire
to
ispirit.
•.to be a
cooperate in that same
That certainly seems to us
most auspicious omen, and
be
ment
manipulated to the detri¬
the
of
investor
to
and
the
illegitimate
profit of a few un¬
principled individuals.
The job of maintaining a free
and honest market, in which the
investor gets all the facts, will re¬
quire the best efforts of all of us.
Let us all work together to per¬
Federal
sanctioned
«of what this country may expect
.from the Administration's inter¬
national
That's
iihave
collectivism
what
told
the
why they
tional
Bank
{should
be
would
to
reform
push
wide
vidual
of
the
British
loan
should
*
*
tie
lacks
motivating
power.
content
be
in
not,
may
his
hint.
facturers
of
census
manu¬
distribution
and
contemplates
manufactures cen¬
Budget carries $5,000,000 for this operation. Outlook is
that Congress will authorize busi¬
well and thereafter
census as
appropriate necessary money. Re¬
publicans last year fought busi¬
authorization
toe found.
made
worthless.
temporarily
tie
He
stymied.
*
it
will be summoned before Con¬
ors
*
ticipated
margin
Chairman
seems
trading.
Marriner
S.
Bccles has quelled those Governors
who sought to have restrictions
alarm
failing
their
in
is
seen
is
by
fiowling
lican
In
this
Truman
connection,
the
feels
over
a
agency
President
*
eral
voted
last
died
ley
crushed
trification
Rural Elec¬
Administration
in
a
Office of Power Adminis¬
new
tration; would transfer to that
and marketing and to loans for
same,
well
as
of the SEC
all
as
functions
touching regulation
of
electric utility
companies.
The proposition hasn't a china-.
;
man's chance but has needled
the
"
public
into
oral
ownership
coterie
agony.
*
immunity
fixing
laws in
the
in
session
the
in
Senate
the
the House,
by
last
where it was
minute rush.
It has been reintroduced and will
be shoved by sponsors. The move
revives
the
ruction
North and South
between
"discrimin¬
over
atory" rates.
office all government operations
relating to power production
#
*
❖
President
Congress
*
be
viewed
through
the
con¬
eign
Commerce Committees of
tooth Senate and House are
prom¬
ised.
The probe will start with
a
general clinic
tics Board
to
cover
ities
on
Civil Aeronau¬
procedure, will broaden
rates,
and
duplicating facil¬
accounting practices of
air carriers.
7
of the Clayton Act so as to pro¬
hibit
mergers
tion of assets
by
as
the
well
acquisi¬
by
as
ac¬
quisition of stock control. Con¬
will
gress
serious
give
the
consideration,
Industrial
*
request
may
ap¬
t|f
come
.
he
would
legislation
distribute
ities
that
more
wel¬
designed to
manufacturing facil¬
equitably throughout
Division
Department
would
of
the
division
efforts
on
be
can
obtained
the
at
of
workers
commerce
in
Act
interstate
excluded,
now
to
the cost of living
and
and in the
production since it
na¬
was
It's a 106 page document setting
forth official opinion on what and
are
taxable. It's free.
Export specifications cover¬
ing foods, drugs and cosmetics
may be lifted to a
domestic
of
parallel with
standards
charges in
a
as
result
a
national maga¬
zine that Latin America has be¬
the
come
"quack
the
dumping ground for
remedies"
United
achieved
produced
States.
by
a
This
simple
in
be
can
amend¬
ment to the Federal Food, Drug
and Cosmetic Act.
C. E.
have
will
excessive wartime
concentrate
Congress
its
stock of Stern
common
Stern
Textiles, Inc., New York.
The stock is priced to the public
at $8 per share.
Proceeds
from
this
financing
*
*
won't
a
vote
good
the
manufacturing
expansion during the
war.
They
^1) top 250 manufactur¬
ing corporations operated 79%
Social
possible. When;
it will be important that they be fairly and'
equitably distributed, that they
generally of the
social-security program in a sub¬
sequent section dealing with longrange programs and recommenda¬
contribute to the maintenance
purchasing
burden
I urge the Con¬
once.
com¬
value 5%
3.
More
than
1947.
This
furnish
badly
veterans
our
will
but
goal will not only
needed shelter to
and other citizens,
in
result
tribution
a
sizable
con¬
of the
this
foreseeable
million
additional
will approximate an
year,
one
housing units
investment of
is the
preferred stock, par value $50
share, and 427,500 shares of
par value common stock.
of
per
$1
high level of current hous¬
ing prices relative to the volume
consumer
To
The company was incorporated
in New York in 1924, as succes¬
partnership established
On Jan. 3, 1947, there
effected a merger of the com¬
pany's three former wholly-owned
manufacturing subsidiaries, Stew¬
art
Silk Corp., Huguet Fabrics
Corp. and Canisteo Corp., into the
company.
White, Weld
on
income.
reduce
the
cost
of housing
all fronts and by all desirable
Henry
C.
Brummel and Arthur W. Page, Jr.
have
Congress
become
-
ILL.
Chronicle)
—
conected
distributed
all levels of
over
These problems
come.
ceive careful study so
in¬
should re¬
that
we are
wise ac¬
5.
r
Labor-Management
Relation*
I have transmitted to the
Con¬
with
the
Chicago office of White, Weld &
Co., 231 South La Salle Street.
Mr. Brummel in the past was with
Wadden & Co. Mr. Page was with
the firm in the New York
gress,
further
on
them
here.
It is
Health Plan
Congress has indicated its oppo¬
sition
to
any
medical
care
pro¬
gram which includes compulsory
health insurance, Washington ad¬
vices
from
indicated
the
on
Associated
Jan.
7.
Press
President
Truman, in his State of the Union
presumably referred to
the provisions of the Wagnjer-
message,
Murray-Dingell bill, which was
shelved
by the last
Congress,,
"I
the Congress to com¬
the work begun last year
enact the most important
recommendation of the (health)
urge
plete
and
to
program — to
provide
adequate
medical care to all who need it,
not
as a charity but on the basis
payments made by the bene¬
ficiaries of the program."
of
methods,
we
must
start
as
promptly as possible a long-range
Senator Taft of Ohio, Chairman
housing program. Such a program
of the Senate Republican Steering
can stimulate large investments in
Committee, had declared even be¬
land acquisition and preparation
fore the President's speech that
for development. It can start the
"we are strenuously ooposed to
flow of new types of private in¬
the Wagner-Murray-Dingell bill
vestment into housing ventures. It
which attempts to impose a com¬
can
bring the traditional homeplete system of compulsory sick¬
building
industry
into
rental ness insurance on all people in
housing as well.
the United States." He added that
No subject has received more
protracted study by the Congress
leading to more uniform conclu¬
sions. Nonpartisan housing legis¬
lation was introduced in the 79th
Chicago
(Special to The Financial
high level of produc-?
are various
ways of
when he said:
As
30,'000 shares of 4V2% cumulative
Two With
a
There
accomplishing these objectives of
tax
policy and of making an
equitable reduction of taxes fairly
units need to be started
housing
in
million additional
the company, upon completion
of this financing, will consist of
In
the ? ;;
provide
GOP Opposes Compulsory
Housing
a
$6,000,000,000 during 1947.
purposes.
capitalization
of
1889.
,
important, however, to em^
payments
under phasize once more, in relation to
the
social-security system. The our goal of a permanent highCongress has already authorized a production, high-employment
temporary increase in public as¬ economy, the key responsibility5
sistance benefits. This legislation that both
management and labor
expires by the end of this year have in helping to achieve thi*.
and new legislative action is re¬
goal. Sound collective bargaining'
quired. Benefits under the old- is essential.
age and survivors' insurance sys¬
In order to build an enduring
tem
should
also
be
adjusted.
prosperity for ourselves and oar
These measures are necessary to
children, we must and we shall
alleviate real hardship which has
solve the problem of making nec¬
been aggravated by increases in
essary adjustments in wages ami
the cost of living. Beyond that,
working conditions without round
adequate
social-security benefit
after round of crippling and fUT,
payments provide a desirable sup¬
tile halts in production.
^
$ #
port to mass purchasing power.
shortages of materials and
manpower
disappear, the main
threat to a high volume of housing
a
of consumers,
help
business incentives es¬
and
sential for
take immediate steps to
June 26, 194-3.
be available
to
by reducing the
mass
they
benefit
preferred stock
corporate
power
the
on
that
and
dwell
revise
levels
outstanding
as
come,
trends, however, certain action is
tions. In view of current economic
par
The
soon
in my State of the Uniott
Message, recommendations covet¬
ing the broad field of labor-man¬
agement relations, and need not
ing shares of $100
on
as
reductions
Security
treat
pany's treasury part of the funds
expended to retire 5,000 outstand¬
CHICAGO,
s&
Justice Department men sup¬
port their cry against bigness
poitttingr to
2.
shall
I
housing industry
toward employment and purchas¬
ing power. At the lowest cost
will be used to restore to the
of
money.
Say that
Stock
on
recovering
charges against
duced
dequately prepared for
E.
was
the United States. There's
,
Unterberg Offers
value
par
&
its
ap¬
Everyone is agreed that the tax
burden is great and should be re¬
tion when the time comes. 1
Unterberg & Co. today
offering 37,500 shares of $1
is
policy to reduce
desirable at
nearest Revenue Collector's office.
in
"major violations"
antitrust laws and
by
classes
Standards
enacted.
*
Federal
Income
Tax,"
edition, has been published
and
nue
Justice
propriation boosted from $1,900,000 for fiscal year 1947 to
$2,500,000 for fiscal 1948 by Truman's
budget. If allowed the increase,
extra
*
decentralization
feud has been cranked up again
by President Truman's hint to
Congress
Antitrust
chance
*
.
#
by the Bureau of Internal Reve¬
wants
Section
amend
■{!
gressional fluoroscope. Investiga¬
tions by the Interstate and For¬
its
Labor
"Your
1946
sor
to
would
consumer
tional
for general
Truman
to
#
are
to
-
These proceeds will
prove it.
Commercial airline troubles
rents
:!:
freight rates is to be pressed
Congress. Such legislation was
consolidate the Tennessee Val¬
Administration, and
revert
may
Sfern Textiles
r
railroad
from antitrust
in
Authority, Federal Power
Commission, Bonneville Power
Commerce
availability of
credit
Limited
of
It would
Deal
was
*
or
Government
business enterprises."
Dirkson
activities.
it
succes¬
Hoover.
business
and
equity
capital to small and promising
proposing to centralize all Fed¬
power
in
duce
i-.V-
1
-
should raise the minimum wage
in view of the substantial rise in
New
a
"should study ways and means
*
Representative
to extend rent control be¬
the
-
♦
taxes.
the
Under
philosophy of business service as
developed by former President
gov¬
withdrawing of credit by banks.
*
agitators are
bill by Repub¬
Congress should take steps
once
*
be unsound fiscal
tion.
of
C.
power
pricing abuses.
urge
4. Taxation
Fair
an¬
withholding
as
long-term
❖
practices
again
Expert and lay opinion is in
agreement on the rule of sound
public finance that calls for a sur¬
plus in government revenues over
expenditures while employment is
high and the total of income is
large. In the present economic sit¬
uation, it is clear that it would
progressively
distorted into a political instru¬
ment. There's now a good chance
business.
sion
They fear
small
wants
«!«
and eliminate restrictive
and
I
itself.
earliest possible moment.
work
assist
Major causative fac¬
of facilitating the
Public
or
Congress
enactment of this program at
substantially re¬
purchasing power.
On the wage side, the Congress
should extend the coverage of the
business
small
modified and congressional inter¬
vention avoided.
Eccles frankly
congressional action. Now
lie'll get it—from the House Bank¬
ing Committee.
prevent
reductions.
Disposal of surplus goods will be
speeded. The antitrust laws will
be applied vigorously to prevent
The
The Commerce Department may
reincarnated as an agency to
unprecedented rash of failures,
thousands of veterans
tor
It
agencies will avoid
policies' that stimulate price in¬
Congress
be
foresee
and
on
The government can help
in
several ways to maintain a. bal¬
ance between prices arid wages.
no.
*
for indi¬
throughout the
regard
situations
economy.
gress to
competition
with
ventures.
ban
com¬
*
of
1947
gress shortly to justify continua¬
tion of consumer credit control
the
discriminating
vidual
yond next June. A large increase
who
*
Withering
under
on
conditions
war
ernment economists.
Federal Reserve Board Govern¬
-
census
President, the Bank can't do
is
relating to
price adjustments
and wage adjustments are neces¬
sary in the ensuing months. Wage
adjustments, like price adjust¬
ments, need to be made with a
Both
wages.
creases
Federal,
financial
Probably
rule
only.
sus
distorted
*■lender
business
uniform
no
at
next
covering 1947 is likely to be
OK'd by Congress.
Existing law
year
grounds
much about floating securities.
In less oblique words, this world
say
Secretaries
*
Synchronized
with
for collection and
of
be
Procurement
>,V-/'
coordinated
a
FTC.
the
regional row crossing
a
basis.
#
collaborate
will
FTC
indi¬
on
were
before
with
ness
:a
*
*
FTC
by
industry¬
an
establishment
for
Truman1
.An acceptable man who will ac¬
cept the Bank's presidency can't
Pending ascension of
on
statistics if Congress OK's $275,-,
000 the White House has asked
party lines is inevitable.
ness
Meanwhile, the International
direction
blocked
Monetary Fund
Sbegin to be felt.
Bank
If
full
opreation; (2)
the
nuclear
trade
agreements
;should be completed and func¬
tioning;
(3)
the
International
'Trade Organization should be a
(going proposition; (4) the full ef¬
fects
that
in
used
reform
Deal
President
now
Here's
be
rather than
scope
SEC
New
repeatedly
planners
(1) the Interna¬
and
in
efforts
war.
President.
say so:
"Short-Range
(Continued from^ page 272)
boost.
Congress
probably will deny it. Bulk of the
increase
■f
program.
Federal
IF
Truman
,
the
will
nation.
/
Commission
appropriation, for promotion
regulation of trade and in¬
dustry.
President
Truman
has
form that task.
th&
:{s
rent
(Continued from page 269)
realistic prevue
in
and
Washington and You
a
*
Trade
pilation
commerce
funds
wants $3,776,000 in coming fiscal
year, or 40% more than its cur¬
program
;and
public
:Js
counsel them must continue
the Securities Act and the Secur¬
complish the laudable
with
World War n, and that (2) of
those facilities .sold thus far as
important aspects of our: system ;
of economy. If it is to remain free,
surplus, 70% have been bought
two indispensable conditions must
by some 250 top corporations.
anxious to cooperate as fully as
possible with the securities indus¬
try in an honest effort to canvas
situation
industrial facilities
new
financed
1? >■••.<•
.
A free market is one of the most
prop¬
with all of the sincerity and con¬
viction I can muster. The SEC is
come
of progress.
ure
This much I think I
erly
from it should
zof
f,i
*
I
by
a
and passed
large majority.
On
several
Senate
the
occasions,
was
Republicans will encourage a
voluntary plan to be availabe to
those who wish to take it.
Republicans are said to plan re¬
introducing, with
tions,
I
have
urged enactment of this program
office which
the
developed within the
the
some
modifica¬
Smith-Ball-Taft
bill
£rbvidihg for Ee^eral aid to States %
and local
governments for volun¬
tary health insurance.
s;y~
tribution
Retailing and the Labor Laws
sibility for taking the necessary
steps can scarcely bo evaded.
(Continued from page 282)
back in tne 1930s. 1
; particularly
to the
tion passed
refer
more
Act
Act of 1935 and to the Black Fair
Act
Standards
Labor
There
Js
1938.
of
res
jattention
experiences, in this
under the Wagner Act
and the Black Fair Labor Stand¬
both
should
unmistakably that
be
the
corrected.
Tne
most proper and soundest thing to
do would be to repeal them en¬
Fair
Black
Labor Standards Act of
1938.
With the exception of the con¬
bitter
ards Act show
of
im? provisions
possible under these laws.
country
ddserve* among
they
them then need for repeal or at
least relief from the destructive
balance between management and.
The
other
not receive tho
tive session may
coring cue
unions that seems practically
however,
are,
things that need to be done which
In the rush of' the doming legisla¬
ing belief that these labor laws
should be repealed' Or at. least
amended.
It is strongly felt that
there is the need for
There
i
widespread and grow¬
a
sternation
how caused by the
portal-to-portal wage issue,, the
need for change in the Fair Labor
Standards Act is not nearly so
clearly understood as the need for
change in the Wagner Act. There
is little, if anything, being said or
tirely, But there is. the possibil¬
done about its most fundamental
ity that many of the members of
evil, namely as a basic cause of
Congress, with their eyes to the
inflation.
This is a matter that
-prospects of the election of 1948,
needs much more
consideration
may decide that it is more expe¬
than it has had up to the present
dient to amend than to repeal.
tive
because every
price increase seems td brihg in¬
creased profits. Of course, most
of such profits are purely paper
profits, but they
still look good in the operating
statement.
Z
Inflation is seductive because it
,
it the appear¬
ances of good business, high em¬
ployment and easy spending, in¬
for
as
above
their
own
lust
power.
If the Wagner Act is not re?
pealed it should certainly be so
^changed as. to give to employers
the same rights and privileges as
;
to the unions,
r
cr
COlleetlve Jbhfgaining should be
i
iledefined So as to reestablish the
true
meaning Of the word bar#
gaining, a free meeting of minds
v
the formulation of
;
contract.
'
^
•
The
a
bilateral
''■*?.
)
should
act
changed
)
certainly be
to include
so as
"enumeration
of
unfair
a
clear
later, unless a remedy is found
and applied, this trend towards
inflation must end in disaster.
Provision should be made to secure
the effective enforcement of
contracts
both sides instead Of
on
employers only as at present.
'Strikes should be restricted to
single plants; or at most to single
^cjompanies. Industry-wide strikes,
.general strikes, strikes against
public utilities, and strikes against
.. the government or any of its
sub¬
divisions, should be ruled out en¬
,
-
tirely and the prohibition should
bq enforced by every
power
of a
shop should be
pro¬
sovereign state.
The closed
hibited.
union
or a
hiring hall.
employer
as a
ly1 to his
of the
citizen to talk free-
own
Bureau
showed
rise
a
Nov.
of
dollar
of
This
1935-39 base.
that the
means
15,
worth about 650 as
Labor
of
15, this index
52% over its
1946 is only
compared with
the dollar of 1939.
a
so
on
but little
increased
not at all
or
since 1939.
The increases in
prices of goods
through retail stores have
much higher; Foods, for ex¬
sold
been
ample, by Nov. 15, had increased
68.7%
Clothing prices had risen
and
house
furnishings
69.1%.
So while total retail sales
87.7%.
repeal
or
at
least
a
I thorough revision of the Wagner
,
Act is the first step to sound man*
agement-labor relations in this
they
what
were
Time deposits
closely
approximate ^ the
same
ratios. The war bonds purchased
during the wartime represent as-i
sets that may be quickly turned
into cash. Shortages of goods and
excessive amounts of purchasing
power are the raw materials1 out
of which inflation springs.
1940.
Granted the conditions
inflation,
favoring
measured by dollars have more
than doubled since 1939, a large
let us see how it
got started. The Emergency Price
Control Act was passed in Jan¬
part, certainly more than half, of
uary
has
increase
the
been
due
to
changes in dollar values, that is, to
inflation.
The remaining half or
less represents the actual increase
in volume or tonnage of goods
passing through retail stores into
now
1942 to control prices and to
inflation.
But this Act
neglected to control the prices of
prevent
certain
materials
raw
and
more
it may, it
as
employable and most poorly paid;
workers. The present arguments
of John
L.
Lewis
in
his
coal- strike against the govern¬
ment, the election of a Republican
Congress and the general uprising
of public opinion against the great
unions, these demands will be
granted.
Most business
that the
men
are
inflationary spiral
in minimum wages
The fact that these increases
living have themselves
been almost entirely due to in¬
creases in wage rates and costs of
production
yet very few indications.
several
which
movements
permitted to continue will
inflation
the
to
levels,
following:
gerous
still
consider the prac-:
now
the establishment
ginner, : the inexperienced,
the*,
least skilled, the least employableworkers in our economy. It is the"
if
marginal wage earned by and paid:
marginal worker.
All wage rates above the mini-^
mum basic wage, rate are differ¬
entials paid
fpr .differences in
the
to the
What Will Cause More Inflation
1.
.
higher minimum wage rates.
The minimum wage rate is the:
basic wage rate paid to the be¬
dan¬
them
us
effects of
of
to
carry
more
among
Let
.
tical
inflationary spiral may
brought under control. There
are
not-
course,
Wage Affect Wage Structure
how this
be
of
Changes in the Minimum
How
are
as
are,.
mentioned.
hopeful
may in
But there
thatof liv¬
the increases
on
in costs of
way
been- reached.
based
ing.
be checked. Each month
they seem to think that the peak
has
increases
are
The demands from the great
skill, experience, productivity, re«r
forr higher wages, unac¬
isponsibilities carried, or other, de¬
companied by any increase vn pro¬
sirable or necessary qualities
ductiveness; ii granted , will con¬
production and distribution^
tinue to add to the cost of pro¬
Wherever there is a wage that is
duction and so to the prices of
higher than the minimum basic
goods.
•
unions
r
2. Shorter and shorter
working
tjie^ffeismti^t 4s, -inevt^
^wjtge,
tably due to such differences. The
hours per day and per
weekforced iamount of wages paid" and re¬
by the Fair Labor Standards Act ceived in excess of the minimum
pf 1938: make it difficult- if not basic wage rate is the economic
impossible to* raise our economy measure of the desirability, pro¬
to full production and, therefore,
ductivity -or necessity of such:
to. take care of the
growing needs
workers to employers
as- com¬
pared With marginal workers.
■
pot only of our own population,
lout for export to the rest of the
world.
American
labor, by its
demands for shorter hours, is ap¬
When
a
minimum wage rate is
set by law or by an
order at a rate not
committing itself defi¬
nitely to a permanent policy of
goods-shortages
and
of higher
parently
level
rate
of
as
the
administrative,
exceeding the.
current
basic
wage;
determined by supply and.
demand, the general wage struc-
on fact, that we may
passed the peak of high
prices.
Some prices have gone
particularly of the wages of labor; prices.
ture is not affected. The costs of
Organized labor was prompt to
3. Man-hour
productivity has production and the prices of
take advantage of this omission
fallen considerably in many indus¬ goods remain the same. Such a
and for more than a year pressed
tries and trades below what it was minimum wage rate does not dis¬
for and secured higher and higher
in prewar years.
There is con¬ turb the business economy. Ef¬
wages.
Finally, on April 8, 1943 siderable
disagreement as to the fectively enforced such a rate
the Administration had to issue its
extent of such declines, but
it prevents any employer from tak¬
"Hold the Line Order" intended to
must be clear that unless indus¬ ing an.y unfair advantage of
any
keep wages from ruining the war
try and distribution productivity employee by offering to pay less
effort and wrecking war produc¬
than the current basic or mar¬
can be increased, not only to pre¬
tion.
Under this order wage in¬
war
rates, but to much higher ginal wage rate. Its effects are
creases were to be permitted up to
levels, it is inevitable that costs social rather than economic. This
15% as approved by the National
of production and the prices of was the type of minimum
wage
War Labor Board, July 16, 1942,
that Florence Kelley, Judge Louis
goods must remain high.
in what was known as the "Little
down since Nov. 15.
Steel Formula."
hands
of
consumers.
As
of
the
beginning of this year, 1947,
at least two-thirds of all increases
dollar
sales
Prices
There
is
are pure
Not
a
Yet
rather
probably
lief,
what
over
in 1935-39
At
they
inflation.
Peak
common
based
on
be¬
hope
rather than
Undoubtedly
price
strong in our economy.
The
times
I,
as
strong because of rising costs of
.
2.V2
Jan.
Be that
have occurred in the costs
circulation
Demand deposits, are more
continuous movement
1939.
failure
times the 1935-39 base level. The
than
rentals, gas, elec¬
tricity and other items which have
$ The
,
running nearly 2V2
are
index includes
stored.
Wagner
Act
has
been
wrong from the beginning. It was
passed in haste Without adequate
study or consideration.
It has
multiplied indhstfiai strife, it has
.driven a, wedge of discontent, of
misunderstanding and of growing^
corrosive, destructive hatred be¬
tween employers and their em¬
ployees that should never have
existed and which at best with
ithe law eliminated or corrected
will take many years to correct, i
payments
income
national
1940;
declines may be they are
still but exceptions.
The infla¬
tionary
factors
are
still
very
been'
The
interest.
the prices of goods sold through
retail stores.
This overall price
,
right
has
Of
at the present time is more than
3 times what it was on Jan. 1,
sharply
abridged under the Wagner Act,
should be promptly and fully re¬
which
on any
country during the past 15
years created large surpluses of
cheap credit for commercial and
other uses at abnormally low rates
amount of currency in
does
there will be still other price re¬
cessions.
But important as these
employees
•"^matter of mutual interest,
of the
not truly
reflect the extent of increases in
index
this
But
have
constitutional right
"
the
by
Statistics for Nov.
retail
of
rates are
seen whether, in the
light of recent events, such as the
of
index
tenth round
wage
for
as
the
or
remains to be
power. The enormous borrowings
of the Government from the banks
and its causes may
were
to hire workers selected for him
-
since
not be so well
In the last monthly pub¬
This fact is well known to
in
restricts
The
almost
an
war
a
increases,
wage
rather than the fifth
all but the extent of the inflation
the
It is today, the most dan¬
monopoly in our economy.
the right to work as
well as the right to employ.
No
Ttttan should be required to pay for
the
privilege of working,
nor
should any employer be required
•
The
It caused
the conditions.
Of
Is hard' to understand, it has been
tion.
gerous
a
not hard to find.
are
infla¬
minimum
the
in
some
It
by
tion
of the present
causes
an
usually based on social grounds*
such as: the desire to raise the
standards of living of the least
Round"
shortage of all wanted civilian
goods. It also created an enormous
increase
in
dollar
purchasing
union
practices as well as- of the present
imfair employer practices.
.
everyone
same
We are also likely
intensisve effort in 1947
groups.
ond
created
prices
Changes in Wagner Act
;
to
money
the
by
support
Why it should be called the "Sec¬
or
.
welfare
owes
The movements
.
creasing the minimum wages
#
lication
representatives of labor among
fthose willing to consider public
r
six years undergone a tremen¬
dous movement
towards
infla¬
good
and who would
like to get out of itepayirig what
he borrowed. Inflation is danger¬
ous because it tends to wipe out
the
values
of
everything that
bears the dollar sign. Sooner or
who
The
This country has in the last five
looks
flation
1
«for in¬
have
already begun in several of these
States;
The similarity
thes$
proposals at State levels to those
to be made in Congress points di-.
rectly to their common origin
from the same sources and to their
trades.
pressure
to see
to get
other States besides the 26 that,
flation.
The industries and trades of the now have minimum wage laws to
• country are now faced by insistent adopt such legislation.
The
demands from organized labor for
arguments for minimum,
another round of higher wages. wage legislation and for increasespanied by increases in productiv¬
ity, that we shall owe further
price increases and still more in¬
known.
and support* not only of employ¬
ers but also of the public and even
Of
to carry with
seems
time.
procedure Congress
should^have the interest
accounting
unac¬
It is to
since the middle of 1945.
„
or
decontrol
further wage increases, unaccom¬
business
tq
was
companied by increases in pro¬
ductions thi&
price increases that have occurred
brings higher wages in
if not > in
purchasing
power, and most people like to
handle more dollars. It is seduc¬
Whatever
adopts
it
dollars,
It
cease.
increases, granted both
before and after
economic life. It is especially
seductive
to
wage
earners
be¬
our
cause
Relief from Fair Labor Standards
tWagner National Labor Relations
would
those wage
1947
Thursday, January 16,
THE COMMERCIAL & EINANCIAL CHRONICLE
302
They
are
Prices cannot fall be¬
of production for
very long.
The costs of produc¬
tion are high, primarily, because
bf the wage increases that have
been granted during the past six
years. If there are to be further
production.
low
the
costs
wage increases, as seems likely,
there will be higher costs and in¬
evitably higher prices.
In
determining
fundamental
price trends we should not be so
much
tions
concerned
of
should
a
be
with
few top
the
prices
gyra¬
as
we
with
changes in the
general costs of production. Both
4.
President's
The
had
order
hardly been issued before signif¬
icant
exceptions
began
to
be
made.
The "Little Steel Formula"
pierced again and again. New
and ingenious arguments were de¬
vised to secure even more and
was
law
to
there
were
hundreds
industry-wide
of
wage
increases
and thousands of
company Wage
increases.
all.
OPA became
more
position of
and
more
un¬
tenable.
Foe a while OPA at¬
tempted the impossible, namely,
basic
wage
paid
may
to
This point needs
When, however, the minimum
rate is set higher than the
wage
current, normal minimum basic
wage rate as established by mar¬
analysis and
ket
occur
of Inflation
!
Proposals will be made before
the present Congress for amend¬
to
the
Act of
minimum
Fair
Labor
1938 to
wage
from
hbuf'tqi to 75c; a nearly 90% in¬
crease, cannot
the
on the one hand, but tried to
keep the ceiling prices of products
down.
The
OPA
"Costs
absorp¬
take place without
vital changes in the entire
present: 40c per hour to 75c per
hour. Some of .the union leaders
econ-i
.
'
If labor is plentiful and if
pro¬
are already asking for 85c or eyen
to acept wage increases and in-: $1jO0 per. hour; Members of Con¬
eyitably higher costs ;oI produc¬ gress have suggested 60c and 65c
tion
not
minimum wage rate from 40c
per
Stand¬
increase the
rate
conditions,
profound effects
merely
within
the
wage structure, but also in -the
costs of production and the prices
of goods* An increase in the
legal
The Minimum Wage as a Cause
ments
duction balances demand,
wage
per: houf;In addition: tb the ef¬
forts: to raise thie minimum? or
basic
the
higher minimum
rate by law will inevitably
cause
no
rates by legislation
affecting interstate industries and
trade it is also certain that .in
wage
unemployment. If there is
possibility of raising prices, to
the increased wage
costs*
employers cannot be expeeted'to
hire marginal workers at a higher
if not most of the 26' States
.rate.
Employees not worth. th6
cover
costs and prices
If Congress.la properly support¬
ed by employers and the general
upward.
what had become the hollow shell
many
public it is more than probable
that the Wagner Act will come in
for such repeal or revision.
The
Jhing conclusive to, indicate that
M
Its end is yet in sight.
bPA down to defeat. It
^nd the District pf Columbia that fiigher minimum r wage
how have minimum wage
immediate
most seductive
change is
so
urgeney
for
such
clear thai the respon?
wards inflation.
■
Inflation
are
still moving
trend
still
is
to¬
Nor is there any-
is at
once
as
'
one
well
as
of the
one
of
the most dangerous tendencies in
tion
program,"
was
the
final
price control
evitable
that,
permitted to
to
as
go
up
or
it
straw
called,
that
broke
and drove
as wage
go
was
up,
was
costs
the
in-*
were
prices r had
production and dis¬
legist
lation there will be the attempt to
1
rates will
be thrown out: of- .work, Young
and inexperienced workers will
rates to
Jfind.it,
intranstate industries and
raise the minimum wage
cover
es¬
tablishment Of .a
country.
The
be
entirely salutary.
or
consideration.
ards
In the meantime the
the
least
employable
is probably the most
fundamental cause of inflation of
higher wage increases. These de¬
were
granted in
great
numbers. In the remaining years
war
raise
marginal
workers,
mands
of the
Brandeis and other pioneers of
minimum wage legislation
urged.
Such a minimum wage
minimum wage, set by
administrative procedure,
The
or
■
increashigiy difficult
Volume 165
jobs.
secure
out:
Persons
work
of
chances
for
then be
so thrown
deprived
of
employment
must
taken
relief.
of
care
-
The
©f
by legislation has become a
powerful tool in "union strategy
for hoisting wages. Thus the es¬
tablishment of higher minimum
wage
or
by
ployment. compensation
.
THfi COMMERCIAL & FINANCIAL CHRONICLE
Number 4560
unem¬
•.
wages
•
.
Fair
Labor Standards Act
was
intended to spread
1938
employment.
_
It is gravely doubt¬
ful whether it
■anything
in Prospect
.1940 the government would
again
forced to turn to
WPA,
as
or
under
the
restrictive
If,
by law.
•the
conditions
likely
time at least, marginal
labor will be employed even at
the higher minimum
wage rates,1
but not without
far-reaching ef-
fects
a
the entire wage
structure,
on
in
weekly
Checking the
Inflation
the
are
simple things that
at least correct
or
legislation that restricts the
development of national economy.
This
goes
particularly .for the
Wagner National Labor Relations
Act
arid
ment
the
interest
or
on
of
expense
who
everyone
anything
possesses
and at
money
the
bearing
In the slightly longer
apd serious disagreements.
there
as
was
during
Drought
so
Let
| formerly got after the inflationary
consider
us
the
effects
the
change
a
in
wage
rate
basic
or
wage earners in
on
of
But
constantly keep before Us the
eternal fact, that the only real
rohiedy for inflation is production^
production that outruns purchas¬
ing power. Whatever checks or
handicaps production contributes
to inflation.
Whatever adds to
understand the differences which
arise between nations andwhiph
threaten the peace.
>
'
r ii
v
Wars may start not because the
people want war, but because
they want things that other peo¬
ple possess and will not give up
.
production and keeps costs down
tends to reverse the trend of in¬
flation and to cure its evils.
without
a fight. Full
and frank
discussion of such situations may
avert armed conflict.
The struggle for peace is the
struggle for law and justice. It is
a never-ending struggle. Law and
justice can fee developed and ap¬
plied only through living institu¬
tions
capable
of
life and
of
this
What effect would this change in
(the basic rate have on employees
his $30. This leaves him precisely
where he was before. Marginal
workers whose wage rates have
been increased by law, if they are
still employed, find that their in¬
creased wages by no more and
may indeed buy less than they did
.who up
before.
country
are.
receiving less than 75c
.now
per
hour. All of these would have to
have their wages raised to 75c
per
.hour.
;
to
the
present have
joyed differential
en¬
for differential wage rate's
•will continue in the future as
they
■have in the past. Employees who
•reasons
[formerly had
been getting 50c,
;65c, 60c, 65c, 70c and 75c per hour
;Would, of course, have to have
.their wages readjusted so as to
"establish their differentials above
[the basic wage rates of the marglnat workers. They would be
.titled
.per
to
receive
more
$1.25
or more per
But
with
jmade
the
to
hour.
readjustments
in all wage rates
♦formerly up to 75c per hour there
-would also have to be
readjust¬
necesary
ments in the wage rates of those
who formerly received more than
75c per hour so as to reestablish
their differential ratios.
Employ¬
who
ees
formerly received 85c,
$1.00,
or
$1.25
per
hour
90c,
would
also be
entitled
to
and
would of necessity have*to be
paid
wage rates
to
$2.00
running from $1.25
hour, and so on
per
through the entire
•
up
nor
eco-
nomic to expect former
competent
■employees to work for the
same
formerly received when
wages as
the least employable or
marginal
workers have had their wage rates
tide
turns.
bust.
a
The
boom
Then every one
Savings are wiped out.
Markets disappear. Buying ceases.
Industry goes on short shifts or
shuts down.
Unemployment
Politicians
mounts.
j their
.
rush
in
with
The economic
gets the blame. All as a
panaceas.
result
of allowing inflationary
trends to get started and then out
of hand. This is no exaggeration.
1 ™s
is the W£W every inflationary
disaster has ended.
Despite all expressions to the
contrary, this country still is rid¬
ing high and fast towards more
inflation.
Unless positive and ef¬
fective forces
applied to stop
are
this trend it will carry this Nation
into disaster. It has
already gone
a
long
way.
Further Inflation Need Not Occur
to
Now, none of these things need
happen. We can stop the in¬
flation if
the
The
urge.
will.
we
what
see
How?
unions
unions
staffed
tently
ments.
compe¬
depart¬
economists
well
must
any of the rest of us.
Their advice to their members on
as
♦increased up to as much as 90%.
The adjustments of these
wage
•rates above the .new and higher
how to fight inflation is interest¬
'basic wage rate might require a
•little time, but the lag would not
ibe long.
Many employers would
fuse
to
prices
too high. They advo¬
consumers'
strikes.
These
.'promptly recognize the fairness of
increasing the differential wage
ing.
They
cate
their members to
urge
buy
goods
any
re¬
whose
are
•
.rates of their former skilled work¬
ers..
Any
employers
who
might
•fail to see the necessity for such
;wage adjustments would be cer¬
tain to have the matter
effectively
•explained to them by the repre:
sentatives of the unions.
The
•
immediate
suggestions
increases
in
levels.
sumer
to
start
as
quickly
work
the
upon
possible,
as
so
far
prices
But
it
at
as
con¬
would
And that is
treaties
wherever
be
very outset
work
of
the
Ministers.
from
Council
But
of
Foreign
refused
we
to
abandon the principles for which
our
country stands. And
notice that
to
a
would
we
served
we
not retreat
sion
ious
as-we
burdens
would
of
reduce
evade
the
America
responsi¬
her
at
Stuttgart we made
it clear that just as
long as our
Allies maintained troops in Ger¬
many
and Austria,
the United
pf these -differences
bring
ment either
to
peace
now
a
within
or
sonable length of time.
The
on
treaties
the
peace.
that
mark
return
The
to
and
that
peace,,
The
be¬
jtoo
slow
ferential
in
granting
wage
rates
proper
to
his
•those in
for
raw
materials,
for
of Foreign Ministers
Security Council dur¬
able
to
upon
they
will
soon
be
able
to
the
re¬
friends,
did
the
during
American
united
For
on a
the
the
we
would
progress
last
never
if
year
people had not
foreign policy. •
past
the
increased productivity, a
productivity that will outrun pur¬
chasing power and consumer de¬
mand* Every wage increase with¬
envelopes. Consequently, the. out an increase in
productivity,
promotion of a higher minimum every strike and
every other im¬
cussions
of
the
German
the
settle¬
ment will start under much
more
favorable conditions than seemed
possible
until
During the
these treaties
last
year
were
month.
Vandenberg's Help Praised
igan
am
sure
associated
my
Democratic
with
would
us
him to leave me in
the Foreign
Ministers
urged
at
Council
and
I respect and
return
to
his
State.
why I like Senator
Vandenberg.
more
Force
Optimism
would
tion
issue
word
a
against
We
must
cau¬
let ourselves
be¬
fey aqy one treaty or series
treaties, or by any one resolu¬
cure
of
tion
we
or
series of resolutions. And
must not let ourselves believe
.
to
must maintain, in re¬
to
necessary
discharge
r'H
>
\
f. "
/Jf*
Only in Defense of Law
perfect
world
well
reason
as
.
of
ours
power
great
as
affect inters
does
national decisions. '
?
States
given
special responsibility under the
United Charter because they have
the military strength to maintain
peace if
they have the will to
maintain
peace.
And
their
strength in relation to one an¬
;
other is such that
can
no
are
one
safely break the
of them
peace
if the
others stand united in defense of
the Charter.
We have joined with our Allies
the United Nations to put an
end to war. We have covenanted
in
not to use force
of
law.
The
except in defense
United
States
will
keep that covenant.
As
a
manent
great power and as a per¬
member of the Security
Council,
have a responsibility,
veto, to see that other
States do not use force except in
veto
or
we
no
defense of law. The United States
must
the
discharge that responsibility.
we
great
must realize that unless
powers
are
not
only
to observe the law but
prepared
are
of
excessive
not
going
are
Force does net make right, but
must realize that in this im¬
And
Cautions Against Excessive
I
we
obligations.
The
I
we
we
our
that that the struggle for peace is hopeunder discus- jless, because we cannot at once
or
law,
our
been
foreign
policy has not been the policy of
a political
party, it has been the
policy of the United States.
year
if
part to maintain peace un¬
our
we
lieve that peace can be made se¬
only real remedy for infla¬
is
from
Therefore,
A-
that
Agreement upon these treaties
gives assurance, too, that the dis¬
The
tion
relief
rela¬
substantially
altered by the unilateral action jof
any one state without disturbing
the Whole structure of the United
strength
my
have made
burdens of occupying armies.
people
of them. Those power
one
lation to other states, the military
United
Nations.
the levels of prewar
:
..
der
ity.
productivity,
The present power relationships
great states precludes.the
domination of the world fey .any
stantial progress made at
cent
Assembly
of
the
dif¬
',
another
upon
Nations.
em¬
of
will
.
do
agree upon a
European
countries
except
Germany, and it will give to mil¬
a
of the
ing the past year caused a better
understanding of our problems
of the country above his personal
welfare. That's one of the reasons
agree
its
and contributed much to the sub¬
optimism
and excessive pessimism as to our
foreign relations.
•have prompt
acknowledgement of
the value of their services in their
discussions and debates in
and in the
build
tionships cannot be
lions
every one knows, the
easiest to organize are
which employees fail to
pay
o'\
prices have been increased beyond
ployees. As
concerns
also
cause
•
the Council
alls
now
very clear.
Nothing suits
union organizer better than to
find an employer who has been
dis¬
•?
to
iior. any other state should have
the power to domiante the world.
advancec
the
He refused. He placed the welfare
but
vbasic wage rates raised
or
be
have
retarded
of
treaties, does give hope
impose
recon¬
Allies
the
labor and for other factors whose
minimum
should
not
of
means
law.
going
are
nation. Neither the United;
into the open our differences and
honestly seeking
ciling them we
we
regime of law among nations, we
must struggle to create a world
in which no pation can arbitrarily
pretending that they da not exist
By recognizing and bringing ou
Paris
milestone
conditions
fact
been
a
Jf
mini<»
were
our
rea¬
a
which violate the
at
war-
comes
getting
Buying
and
these
institutions
backed
by
sufficient
to
protect nations which
abidfe by the law against natiops
peace
cannot be made by ignoring very
real and basic differences and by
been
to
la
in
sumers.
emphasized,
And
be
force
the
Allies
join me in saying that our bi¬
partisan foreign policy Was made
weary world
and we have not
possible
only
by
the
whole¬
sought any excuse, however hearted and
intelligent coopera*
plausible, for shirking our respon¬ tion of
my Republican friend, Sen¬
sibilities.
ator Vandenberg.
The treaties with
I am indebted to him for his
Italy and the
ex-satellite states, as they emerged tribute to me. I would not trust
from months of protracted
nego¬ myself to speak at length of him
tiation and debate, are not
per¬ but I must recall to your minds
fect. But they are as good as we last fall he was a candidate for
can hope to
get by general agree¬ re-election. His friends in Mich¬
part
couraged not merely for finished
goods that are too high in price,
.unions
the
.
that
the
friend, Senator Connolly, who has
Determined to Do Our Part
determined to do
between
niized and overlooked. But
treaty with Austria.
That will make possible the re¬
moval of occupation troops from
of
be
And
were
inevitable
was
should
States would maintain its
troops in
those countries.
We
must
times greatly exaggerated. On the
other hand, during the war some
But,
occupation,
not
bility. And
to
were
it
differences
policy of isolation.
We made it clear
that, as anx¬
these five
line
differences be¬
grave
tween the Allies did arise in the
have
applied all along
producers to con¬
have per¬
last Winter
we
After every great war the vic¬
torious Allies have found it diffi¬
cult to adjust their differences
ie
the making of the peace. At the
increases
were
why
sistently urged since
that deputies should be
appointed
to.j)egln work upon the German
and Austrian treaties.
;
sounder if the opposition to price
the
interest
sound
are
they go. But they do not go far
enough. It is well enough to op¬
pose
I at Potsdam
two
months
after V-E Day proposed to set
up
the Council of Foreign Ministers
us
themselves
have
economic
Their,
Let
recognize the danger of inflation
as
and
in
\ loses.
up
wage structure.
•It would be neither fair
becomes
75c j
up
increases
and prices reach their cli¬
The
en-j system
than
hour, that is, from 80c
these
later
wages
max.
get the patient off the
operating table.
That is why President Truman
possible.
Still
wage rates? The
-
growth.
(Continued from page 273)
we
without
such public discus¬
people of the world who
want peace would not; know and I
Promoting Peace
until
as
sion the
wage
the
and
.
Will Do Our Part in
minimum
increases may become $60,
$90 or even $120 per week, but
wage i the worker soon finds that he can
structure. To begin with, at least buy no more for his
$60, $90 or
.30% and probably more of all the
j $120 than he formerly bought for
.such
open
Of course it is true that public
discussion emphasizes differences.
,©n
.prices of goods.
the
the past year
:tn the Council of
Foreign Minis¬
ters, the Security Council and the
Genetil Assembly.
/
•.
the
run
the wage costs per unit of
pro- ! wage -earner
himself takes the
duction
and
inevitably on the beating. The $30 a week that he
into
opt
frankly discussed in public
they have during
These laws have placed serious
the
•
before have the differ¬
between nations been
ences
inflation.
there is
as
at present.
•<
Never
other round of wage increases and
more
the long run do more to avert
plash of arms than a lot of pious'
resolutions which conceal honest
>
World War and such
ways and means of reconciling all pur differences.
Nations, like individuals, differ
as to what [is right and just, and
clashing appeals to reason may
a
handicaps upon the economy of
this Nation, They haye increased
2. We need especially to get rid labor
unrest. They constitute a
of the 4D4iour and penalty over¬
threat to the future, They can be
time provision in the Fair Labor
corrected* They should be cor¬
Standards Act, a provision that
rected before it is too late. Be¬
has not the slightest relation to yond these necessary
steps let us
such
find
;.n
matter how smoothly worded
to raise the legal minimums are
the preliminary moves for an¬
the Black Fair Labor
Standards Act. of 1938.
dollar sign.
|
|
3. The Nation needs to check
the use of minimum wage legis¬
lation and regulations as a, means
of jacking up the wage structure
without relation? to productivity,
Any increase in the present mini¬
mum wage will have further in¬
flationary effects. The proposals
no
if not accompanied by an
in man-hour productiv¬
ity, is purely inflationary. Every the needs -of the Nation or the
such wage increase whether paid
safety of workers,
but ; which
by an individual, by an industry, serves to cut down production and
or by a nation, is paid at the ex¬
so contribute to further
inflation.
pense
of: everyone who is de¬ This provision will penalize the
pendent upon a fixed income such Nation whenever there is a
grave
as a
pension, an insurance pay¬ need
for < increased
production
increase
.
at present, it seems
case
reduction
a
wages,
on
that, for
reduction of hours of work
a
without
the other hand, there are
shortages of labor and vital short¬
ages in consumer goods such as is
•
in
or
expedients
similar forms of
.relief under other names,, to take
•care of those unable to find
work
.established
Here
„
the
High wages are essential to a
country still nearly. prosperous national economy, but
"10,000,000 unemployed." If this always in relation to productivity.
country were again to face un¬ A wage increase in any form,
employment such as we had ini whether in an hourly rate of pay
.such
"
•
1. Clear out
Penalties of Inflation Now
The
this
.be
•
Program for
need to be done.
flation.
accomplished
this line. It is
along
in
A
even
more probable that it retarded em.ployment for as late as 1940 there
.were
everybody.
has become one of the
major
objectives
of
ambitious
union leaders ' as well as of all
those who would benefit from in¬
public
or
pediment to production is an encouragement; ltd: [ inflation* [We
must, somehow, get this clear to
303
prepared to act in defense of
the
law, the United Nations Or¬
ganization can never prevent war.
In a world in which people do
differ as to
what- is right and
wrong, we must strive to work
out definite standards of conduct
which
all
develop
can
and
We must
through the
accept.
build
years a common law
History informs
of nations.;;
that individuals abandoned private wars
\ *. „(Continued on page 304)
us
FINANCIAL CHRONICLE
THE COMMERCIAL &
304
sion, is furthered by the willingness of Wall Street speculators to \
take a chance. But Jto define their functions in terms of the' distant
ends that those actions ultimately serve misses the point. It is the
primary intent that must be the basis of the concept of their behavior.
/jw • '•
. ,
(Continued from page 269)
To transform the concept of speculators' conduct on the basis of
l££ep from being fired, was he expected to walk a tightrope between
ancillary results, would be like denying that the French buyer of a
frankly warning his clients about the business, while simultaneously
lottery ticket is gambling because part of his money is devoted toward
white-washing that business to judges in "fix" cases—in conformity
meeting the national government's expenses; or like contending that
with the dignity of the Stock Exchange?
the pari-mutuel player at the race-track is performing a constructive
service because he is indirectly supporting jockeys' worthy families,
helping his State to support schools and hospitals, etc.
Observations
.
A "Public Relations" Miscalculation
*
quick action by Mr. Schram, with the active approval of Mr.
Haskell's employer, may have been justified in the light of the
basic business aims of both those parties. For the President of the
•
*
*
*
Stock Exchange is in the full-time job of leading its
continuing War-
for-Survival against government encroachment. Although the recent
no doubt temporarily repulsed the SEC, it and
other of the nation's proponents of financial reform will no doubt do
.election returns have
Investment Trusts and The Investment
Concentration
on
.
So
have
work together for
good. We live in
world. The health of the body
their
and
common
whole-heartedly
of political iso¬
abandon the pol-
people of each country
exchange the products of
their
country easily and fairly
with the people of other countries;.
Although our general long-rum
the
that
standard, the immediate
during the last two years
itself.
Do Our Part in
learnings of the ordinary profit of trade."
v.
Both under the premise of this concept, as well as under the
public's usage, many activities of the Exchange and on the Street
generally must at least raise the eyebrows of investment "purists."
„First of all, let us consider "Wall Street's" relatively serious
activities in security analysis and market forecasting. As was clearly
demonstrated in Mr. Washington Dodge's article, "The Forecastability
;of the Stock Market," which appeared in the "Chronicle" of Dec. 19
last: "when we speak of forecasting the stock market, We obviously
mean stock prices and not stock values." 99% of all market observers
are really occupied—not with business-like scientific appraisal of a
particular stock's price in relation to its long-term value, but in try¬
ing to guess the degree by which its future price—as determined by
the emotions of the market place—will fluctuate from its long-term
Jreal value. Thris it is that the community vainly tries to wishfully; think and otherwise guess, about the short-term course of the nation's
and world's cosmic political and economic events, and to guess again
1 about
their effect on prices.
Whatever else may be said of this
tain
ditions
they
were
law
mon
of
their
tribes
and
tion
of
of
armaments,
not going to
their nations. So I believe that in
remain
the
make
long run international peace
depends upon our ability to de¬
velop a common law of nations
which all
nations
which
nation
no
impunity.
In the past
.
can
but
If
limita¬
we
And
that
clothe and
feed,
should:
we
all
devastated many
countries and has disrupted their
economics.
UNRRA has helped
these countries through their most
The
Priority of Atomic Control
law
has concerned itself too much with
We have urged priority for the
control
of
atomic weapons be¬
they
cause
tries
Its
period.
terminated
now
the most destruc¬
because we
are
has
war
critical
international
shelter them¬
selves and their children.
'Govern¬
accept and
.
people to value free¬
respect law we must at
want
give them a fair chance to
least
disarm while others
armed.
certain
we
dom and
are
ments live up to their agreements
to disarm.
violate with
can
and breed war.
We have urged a general
their arms only as
protected by the com¬
up
must do our pari
elimination of con¬
which breed aggression
we
peace,
to assist in the
(Continued from page 303)
gave
political unrest*
tyranny and aggression. And if we
are sincere in our efforts to main¬
Promoting Peace
and
starvation
distress,
Economic
and disease breed
^profit from conjectural fluctuations in the price rather than from
.
maintain life
to
been
has
areas
living;
problem#
in some
is to help raise the
purpose
between
f
hu¬
the
Economic Isolation
cannot
Gambling, Speculation and Investment
differentiation
learn
must
nations
peace,
live
to
may
broker characterize it)?:—Investment Market; Machine
of
truce between
a
unless we are willing to cooperate to maintain freedom and
well-being in a world at peace*
We must learn to cooperate so
for Specula¬
tion; or Gambling Parlor? Probably it is composed of bits of all three!
gambling, speculation, and invest¬ And so perhaps Mr. Haskell and his colleagues should be taught to
ment, is largely a question of semantics and definition. But it does prefix the term "quasi" to ichichever of the characterizations they
choose!
seem to this writer (after having heard the point argued throughout
:the world), that essentially the investor, is motivated by the desire
for regular income, whereas the speculator is concerned with gaining
(fortuitous) profits through changes in price. Thus Webster's Dic¬
tionary defines speculation as "Dealing with a view to making a
The
must
than
war,
ask, what is Wall Street (and how should the customers'
we
something more
nations. To
be
world
icy of economic isolation. We are
not likely to be successful in our
efforts to
cooperate to prevent
•
The Definition
interdependent
this
in
lation unless we
from their
„
Truce
Than a
..
Peace
abandon the policy
portfolio often not even being calculated.
0$
In the capital markets the speculative influence is reflected in the
Nevertheless, the Exchange seems to have overestimated the suc¬
cess of its excellent advertising arid other public relations campaigns,
operations of our investment bankers. This is seen in the various
in convincing the public of the scientific nature of its clients' opera¬ kinds of "escape" provisions that govern underwriting contracts—
tions; to have misjudged the image in which, it is held in the provisos which, permitting cancelation of deals at the subsequent
^public eye. For in lieu of fulfilling expectations and condemning Mr. closing time if the "atmosphere" should become unpropitious, hence
VHaskell, the public—at least the voluble New York part of it—has refer to speculative atmosphere.
obtusely chosen to jeer or laugh at the Exchange.
*
• sis
%
#
1
Peace Should Be More
We
plenty of counter-attacking in future. And, as is demonstrated in average dividend yield of 4.2%, and contrasted with their successful
recent elaborate outpourings of its literature, his employing broker¬
garnering of capital profits. Their reports of operations are always
age firm has been taking great pains to emphasize the constructive concentrated on capital values; the
yield of their operating income
investment nature of its services.
differences.
No
of less
than 3%; contrasted with the Dow-Jones average
of industrial stocks' current earnings yield of 12%, and the latters1
assets
another 3
tolerate one
and
spect
politic like the health of the
man
body
depends
upon
health of all its members.
Bankers
capital gains rather than income is evidenced by
the conduct of even our most legitimate and scientifically-managed
investment trusts. Evidencing this is their customary income-yielc
on
individuals must re*
nations like
one
The
The
194$
Thursday, January 16,
authority
but some
is
coun¬
through no fault of their own
further relief to get
their feet. And this we can¬
not deny them.
terested in ways and means to
Jbehavior, it certainly does not constitute businesslike, or even logical,
posal for more than six months;
Outright relief by us is neces¬
prevent war than I am in ways
appraisal of permanent income possibilities.
and because it presents concrete¬
sary in some countries. But the
and means to conduct war.
ly the issue of international in¬ countries in need and the extent
spection and control. We are con¬ of the need can be determined by
A Common International Law
vinced that if there can be agree¬
The Significance of "System" Playing
the United States just as well as
Unless we are able to develop a
ment on that subject, there, can be
it could be determined by a com*
The futility pf this behavior is indicated by the fact that so many common: law of
nations Which
agreement on the control of other mittee composed of representa¬
"Wall
Streeters-^-professionals arid amateurs—have in disillusionment provides definite and agreed major weapons and a general re¬ tives of other Governments.
turhrid '(escaped) to mechanistic "systems"—as chart-reading. While standards of conduct such as those
duction of armaments.
A permanent place on the relief
/the construction of elaborate charts—with double and triple "tops"; which govern decisions within the
If we are unable to reach agree¬ rolls is not the desire of those
*and bottoms and all kinds of geometric pictorialization—together with competence of the International
ment on that subject it will be self-respecting nations which have
.the esoteric lingo accompanying them, may enable the performers Court of Justice and such as those
useless to discuss the other sub¬ fought for their freedom.
But
,to believe and say they are doing constructive "work," nevertheless which we hope may be agreed
much of their productive capacity
it really is equivalent to the roulette-players' age-old hunt for a upon for the control of atomic jects.
has been destroyed, they have no
But
international
law
in
a
"system" to beat the wheel. In the cases of both the roulette mathe¬ energy, international problems be¬
matician and the chartist if the results are sour, it is not "the system," tween sovereign states must be friendly, peaceful world must rest working "capital in the form of
but their interpretations, that are blamed. In any event, the charting worked out by agreement between upon something more than mere foreign exchange to start the flow
and other mechanistic operations have nothing to do with investing sovereign states.
*
rules, something more than force of needed raw materials.
They do need loans to secure
•for income—being exclusively concerned with market fluctuations;
The United States has taken the and something more than fear. It
if the charts indicate even that defaulted German Bonds are in a buy¬ lead in proposing the control and must be made to rest upon the the raw materials, capital equip¬
ing range, they will be bought—income
or no
the rules of
and too little with
the rules of peace. I am more in¬
elimination > from
the
income!
war
national
tive
all
of
have
been
growth
of
armaments of atohiic weapons and
other
Activities
•
i
These
The continuing and
while the Dow-Jones Industrial
Average advanced by 130%, Bar¬
ron's index of low-priced stocks increased by no less than 635%.
iOis Also
doubting Thomases might
ask
how
the
still-existing
b activity of
short-selling on the Stock Exchange is to be characterized
—particularly in these days when most stocks are loaning flat or at
a premium, in lieu of yielding interest to the short-seller.
r
>
.
.
and whether the public's impression of an atmosphere of
-gambling is not pardonable, when during the football season and at
j! election times it hears quotations of "the Wall Street odds"—and
can have bets placed by its brokers.
and it may be made skeptical by reading of the recent
gambling fiasco on the New York Cotton Exchange; which, although
>
v
fit
k
.
.
occurred
on
a
commodity
change firms.
.
*
exchange, involved
r
*
*
mass
destruc¬
seven
Stock
Ex¬
clear
and
law
must
at
work
on
the
upon
pro¬
among
the
It
carry
adequate safeguards to
mon
our
fostering of
a
and
com¬
Americas.
the
a
the
If
It
was
a
common
treaty
control
that
a violation of that treaty shall be
punished, it is difficult for me to
understand why that nation can¬
not agree to waive the right to
exercise the veto power should it
ever be charged with violating its
treaty obligation.
In 1921, while a member of the
House of Representatives I ad¬
agrees
to
by
solemn
plan for the
a
of atomic weapons and agrees
vocated that the
for
President
the
call
limitation
naval armaments.
a
of
negotiation of a mutual assist¬
treaty in accordance with
Act of Chapultepec at the
projected Rio conference. But wc
do not wish to proceed withou
and neither our Am¬
any official of the
State Department is of the opin¬
ion that Argentina has yet com¬
plied
with
the
commitment?
Argentina,
bassador
nor
she
American
as
well
as
the
othei
No Barriers on
republics at Chapulte¬
We
agreed to carry out.
It is our earnest hope that be¬
fore
long there will be such
and
substantial
such
a
of
the
and free women*
Exchange of Ideas
believe there should be no
barriers to the free
of ideas and of infor¬
unnecessary
exchange
mation
com¬
nations. But it is
among
unrealistic to expect to have trade
pliance by Argentina with its ob¬
the ^President
.
conference. What
products
the
of
change
labor of free men
pec
reasonable
have
to
science
did call ligations, that the American te*
happened; publics,, after consultation/ wll
One basis of frequent argument for j
ustifying the "legitimacy1" thereafter4 influences my thinking convene the Rio conference/ /
in. American stock exchange activities lies in citing the construc¬ today. While America scrapped
Now a common fellowship doe:
tive service that is rendered to the nation's industrial
progress battleships, Japari scrapped blue¬ not mean that nations must in al
by the Stock Exchange's support of the • capital market. Acknowl-. prints. America will not again respects think alike or live alike
edgedly, not only new inventions but also general capitalist expan¬ rnake that mistake^;' '•** •
4 Inevitably,
weJ will differ. But1
The Argument in Justification
Fund
Bank must
our
whole¬
tion
the
which
re¬
Despite the ravages and destruc¬
of the war, the advance of
makes it possible for us
and other nations to preserve and
increase our living standards if
we work together with other na¬
tions to produce what we
and
other nations want and need.
We must learn that prosperity
like freedom must be shared, not
on the basis of handouts, but on
the basis of fair and honest ex¬
fel¬
which made the Act of
Chapultepec possible.
We are eager to proceed with
ance
nation
a
Export-Import
continue
lowship
of
necessary
hearted support.
good-neighbor policy in the
hazards of violations and evasions.
prompt .enforcement
and resume their ability to
produce. The work of the Inter¬
peoples of this
fellowship that gave vitality
They must be sufficiently definite
and explicit to prevent a state that
violates the law from obstructing
law.
to
and
build
national Bank, the Monetary
was
to the
tools
ment
a common fellowship,
interests
and common
earth.
protect complying states from the
Later
£
of '
rules of
conference
. ..
*
ideas
weapons
tion under agreed rules of law.
the Exchange
even increasing degree of speculation con¬
trolling our stock market is evidenced by the great proportion of
trading volume centering in the low-priced sector of the market,
Far more even than in the 1920's, the major activity in the "late"
long bull market was largely concentrated in stocks selling under
$10—in its peak stages appreciating to the $10-20 stage. And in addi¬
tion to the volume of trading, the extent of
price-appreciation was
also proportioned that way. Thus, during the 1942-'46 Bull
Market,
.
i
on
common
will require
weapons;
.
are unwilling to
goods.,
:We - must break down the arti«*
ficial barriers to trade and com-*
merce
among nations. We must
in
ideas
if
we
have trade in
pursue our
..
reciprocal trade jpol.sij>npd t.n exriand
ur..
t
ii-
-
Volume 165
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4560
times when I was teria which, ,if applicable, would basis for recommending greater
deeply discouraged. Our repeated permit a country to impose re¬ powers on the part of the ITO
from us
efforts to achieve cooperation in strictions with retaliation.
under Article 20, should the Fund
a
consider this desirable." i .^
buy from the world.
:
peaceful world seemed to be
Inconvertible Currencies and
We must pursue vigorously the meeting only with constant re¬
Discriminations
Amendment of Fund Articles May
Charter for the establishment of buff. But we persisted in our ef¬
Be Sought ' y
an
international trade organiza¬ forts with patience and with firm¬
Space prohibits complete quo¬
tation of Mr. Luthringer's com¬
tion. It is designed to avoid eco¬ ness.
Foreshadowing amendment of
nomic warfare between
nations
Today I am happy to say that ments on Article 22 of the pro¬ the Fund's Articles of Agreement
charter.
Some
and insure equality of commer¬ I am more confident than at any posed
excerpts is Mr. Luthringer's recommenda¬
cial opportunity for all nations, time since V-J Day that we can from his report will be of interest tion:
"That the board authorize the
large and small. In other words, achieve a just peace by coopera¬ here:
"This Article which sets forth representatives of the Fund to
we must avoid economic blocs if
tive effort if we now persist "with
we wish to avoid political blocs.
firmness in the right as God gives the conditions under which quan¬ state that the Fund will be willing
titative restrictions may be dis¬ to undertake the duties
My friends, after every great us the power to see the right."
proposed
war there comes a period of dis¬
is of
considerable for it with respect to non-member
We have demonstrated our ca¬ criminatory
American trade and world trade-
because
year there were
the world cannot
buy
if we are not willing to
<
Apparently, it J; would
countries
to
choose
pacity in
gether expect too much from
onstrate
another
and
"too little to
inclined
are
to
one
give
another.
one
'
They forget that victory in war
only give the opportunity,
can
which would otherwise be denied,
live and work for the fruits
to
do,
we
herit
a
everywhere can'in¬
peaceful world of expand¬
ing freedom and increased well-
To that goal freedom's past in¬
There Were Discouragements
spires
I
calls
that
men
being.
of peace and freedom.
admit
children and the chil¬
our
dren of
We must now dem¬
capacity in peace. If
war.
our
during
the
past
and
us
freedom's
future
us.
interest to the Fund.
^unsuccessful
in
obtaining all the
Articles
on
19,
21
20,
and
23.
Other parts were much less con¬
troversial.
There was never any
modifications it sought in this re¬
gard.
restrictions
Mr.
As reported to the Fund by
advance
of
pay¬
purposes, even as a posttransition feature, the Fund rep¬
representatives to the problems
presented by the foregoing was to
express the view that (a) quanti¬
resentatives shifted to
tative restrictions in the transition
period.
period might well be allowed un¬
der safeguards generally equiv¬
that most balance of
alent
not
to
those in
the Fund
Article
XIV
of
Agreement; (b) that in
the post-transition period the use
of quantitative restrictions should
She
subject to prior approval as
were exchange restrictions under
Article VIII of the Fund; and (c)
that
objective
criteria
which
to
get agreement
sultation
in
external
an attempt
advance con¬
post-transition
on
the
We
expressed the view
payments
difficulties
reserve
or
did
arise
overnight and that our
essential point would be met if a
country would consult with the
ITO
and
culties
of
Fund
these
soon
as
By
diffi¬
means
consultations alternative
methods of
ties
as
impended.
and
meeting the difficul¬
impact
on
the
their
automatic guide economy of the consulting country
imposition or removal of and of other members could be
At
these -advance
quantitative restrictions were im¬ considered.
consultations a country would not
practicable.
Would
to
serve as an
the
even
"Consultation with the officers
(of the U. S. Delegation revealed
that
to
that
delegation
consider
was
modification
willing
of
the
criteria proposed in the American
draft charter and of certain as¬
pects of its transition period pro¬
posals, particularly if it were pos¬
sible to get agreement that after
the transition period quantitative
restrictions could be used for bal¬
of payments reasons only to
supplement or in lieu of exchange
ance
restrictions authorized under Ar¬
ticle VIII of the Fund Agreement.
Discussions with other delegations
revealed, however, that there
no disposition to submit the
of
quantitative restrictions
balance
was
use
for
of
need to indicate what its de¬
cision
was.
"This proposal was strongly op¬
posed by the U. K. Delegation on
the ground that it was unfeasible
from
the
standpoint of adminis¬
trative planning of import pro¬
grams and quotas and might lead
to a flood of imports as soon as
consultation was suspected by the
public.'
The
French Delegation,
which ; was
representing
other
European delegations, as well in
these particular discussions, was
also opposed, and the U. S. Dele¬
gation was unwilling to give the
proposal active support.
We ac¬
cordingly agreed to a compromise
nroposal which required consulta¬
tion
in advance only if prac¬
payments reasons to
ticable.
In
view of the
other
degree of control and
consultative requirements finally
safeguard as exchange restrictions
emobdied in the draft of Article
under the Articles of Agreement.
It was argued by the British Del¬ 20, however, this may not prove
in practical effect to be a major
egation that the U. K. would never
Jiave signed the Bretton Woods departure from our position."
After
thus
summarizing
the
Agreements unless it retained the
right to use quantitative restric¬ compromise of the British and
tions freely
delegations' views
as
to
and that after all Fund
the
nothing about quanti¬
was
tative
restrictions
Agreement.
the
It
in
the
Fund
also clear that
was
criteria
the
for
restrictions
to
safeguard
ance
of
an ITO member's bal¬
payments, Mr. Luthringer
observes:
countries
most preoccupied
"It seemed at times that the
problems of reconstruction
development were generally Conference might in fact spawn a
Unsympathetic to the requirement new era of mercantilism rather
of advance approval of the use of than lay the
groundwork for sub¬
quantitative restrictions.
In this stantial reduction in barriers to
connection I might remark that trade."
one of the respects in which the
A provision of the draft charter
London Conference differed from
as
agreed to at London
(sub-,
the
Bretton
Woods
Conference
paragraph c of paragraph 3 of
was in the extreme preoccupation
Article
20)
provides
"that
a
with transition problems.
There
country may obtain advance ap¬
was
little
or no
disposition to proval for
restrictions, and offers
work out first the post-transition
the inducement that if it does
so,
or permanent provisions and then
to the extent that such restrictions
provide for a transition period of are
the
general
rule
quantitative restrictions in
titative
equivalent effect of exchange re¬
strictions permissible under Ar¬
ticle VII of the Fund Agreement,
at
Bretton Woods; rather, the ap¬
proach seemed to be to regard the
transition
period as permanent
and to shape the various
preposals as "far; as possible in this
direction.
.
f -"Since it
th%t
«
early became apparent
jthere;-,wf? ;np possibility o£
.
the
ITO
unwillingness to sign
a
on
our
part."
action
ever
immune
and
standard
be
may
feasible
to
appropriate!
eliminate
conditions
sub¬
of
labor; ih
production for export and gener¬
ally throughout its jurisdiction.
Cuba
was
in this
particularly interested
provision.
American Full Employment
Promised
llPl
"From the Fund's
the most
important
standpoint,
nient had carefully preserved the
right of a member to invoice its
A
summary
of
the
London
meeting's
accomplishments
was
separately prepared for the Fund
by another member of its mission
exports in terms of the currency
of
third
a
country and that we
saw no objection to implementing
this right by the use of quanti¬
tative restrictions.
"There
".
.
So
.
relevant
agreement
far
agreed
Charter
possible, the
policy pro¬
upon
in
the
as
commercial
visions
will
General
be
embodied
Trade
in the
Agreement
the
new
tariff
that
rates.
In this way
large sections of the
at the Conference with the ob¬
Charter, including the sections on
jective of establishing multilateral quantitative trade restrictions and
trading over as wide an area as exchange controls, may be adopted
possible, but there was a feeling when the. Trade Agreement be¬
that so long as some currencies comes effective.
There will even
remained
inconvertible
there
would be
difficulty in reconciling
objective of non-discrimina¬
the
tion
with
which
measures
some
countries would find necessary for
the protection of their external
financial position.
".
.
ITO
.
Thus
.
which
is
.
a
.
.
member of the
member
a
of
the
Fund may
impose discriminatory
quantitative
restrictions
which
have
equivalent effect
to
ex¬
change restrictions permissible to
the
member either under Article
XIV
Article VIII of the Fund
or
Agreement.
In
either
case
the
country would retain freedom of
action in
the
sense
that
advance
which
was
ments
with
Fund
under
not
restricting pay¬
the approval of the
Article
VIII
could
be enlarged
may
are
make
the
accept
the
tariff
other coun*
willingness to
as
tries evidence their
concessions
and
obligations
envisaged
in the Charter.
Ultimately, how¬
ever, a World Conference of all
eligible countries will be held to
pass upon the entire Charter pro^
posal, including the International
Trade Organization.
The recom¬
mendations of this World Confer¬
will then have to go before
respective
adoption.
governments
for
.
There is
no
clauses
escape
permitting
members in balance of payments
difficulties to emnloy quantitative
restrictions
other measures to
or
eliminate their deficits, but tnere
is special emphasis in this em¬
ployment charter on the need'fbr
interpreting these provisions
to
safeguard
so as
economies
against
deflationary pressure in: the
the
event of a serious or abrupt de¬
cline in effective demand abroach
"The drafts for this
employment
presented by
had
chapter originally
British
and Australians
gone much farther in
countries to
tion,
committing
specific types of ac¬
their action f as
including
members
of
the
International
Monetary
Fund and the Bank.
The representatives of the Fund
and the Bank
were
successful in
eliminating
provisions
character, which would
of
this
tend
to
^vethefeffeet
of their institutions in advance or
give
priority
this
to
Issue Pressed by
responsi¬
Underdeveloped
Countries
"Committee
Committee
I
arid
II
(Joint
Industrial
on
Devel¬
opment).
There was a strong
on the part of undevel¬
oped countries to obtain for them¬
movement
selves
sweeping exemptions from
general
principles
of
the
Charter.
They
felt
that
the
Charter was pointed in the direc¬
tion of free trade, whereas they
required
protection
and
other
the
assistance if they were to carry
through their plans of industrial
development.
of
Hence,
the
without
these
Charter
would
as
a
Employment is
recognized
cern.
matter of international
Each
con¬
member
appropriate
agrees
to
action designed
longer any
maintain full and productive
employment and high and stable
e m
in
every
discussions
full.
to
.
"Elsewhere in the Charter thereare
suggested
chapter
[on
employment and economic activ¬
ity] is brief and should be read in
in
agreement with the Fund.
m
Fund's hand.
phase
"The
take
".
of the Fund; and this
obligation in the ITO Charter if
accepted,
may
strengthen
the
countries
apply discriminatory quan¬
titative
restrictions
only
after
prior approval of the organization
fixed cut-off date for
influence
of the ITO in connection with the
provisions of the Charter that
required for quantitative restric¬
However, a country which
XIV and
grams of expansion and employ¬
ment.
Such a country Ts less sub¬
ject than deficit countries to the
embodied in the Agreement.
And
the original group of 17 countries
the
Article
them from pursuing domestic pro¬
a
ence
under
payments and, hence, is accumu¬
lating reserves of gold and foreign
exchange at the expense of other
provisional
international bility as against other objectives
or responsibilities of the Fund and
agency established by the Trade
Bank.
Agreement to function in advance
be
approval of the ITO would not be
not
signed to correct the maladjust¬
This is aimed particularly
at a country which has a large and
persistent surplus in its balance of
ment.
the
achieved;
establishes
general
was
was
its full contribution to action de¬
countries and possibly preventing
Summary of London Meeting
ph
a
ti
c a
11
these
y
<■
in¬
sisted upon exceptions for them¬
selves.
They firmly believed that
exceptions
favor
.the
established
industries in the major countries
and tend to keep the undeveloped
regions in the status of colonial
with unprogressive econo¬
areas
of dis¬
levels of effective demand within
mies.
criminatory quantitative restric¬
tions, but, instead, even a country
that has assumed its obligations
its
jurisdiction. 1 It also agrees to
take action designed to develop
substance
its
that in
under Article VIII may make use
of such discriminations in
excep¬
its standards of
use
economic
resources
and
raise
productivity. This
provision was inserted by the un¬
from challenge under 3 (d) in so
tional circumstances if it is able to
developed countries whose special
far as balance of payments or re¬
obtain advance approval.'
needs were dealt with at length
serve
considerations
are
con¬
"Article 22 is the only instance by the Joint Committee on Indus¬
cerned."
v; v
I believe where the Organization trial Development. What happens
This .paragraph is also, impor¬ can on its own initiative: order if maximum
progress and produc¬
tant, says Mr. Luthringer, be¬ action .by a member which the tivity can be achieved only in a
cause .it embodies a compromise
latter is under obligation to un¬ rapidly changing economy involv¬
with the Australian request for
dertake, Accordingly, agreement ing ■ considerable unemployment
on
this: "section
establishment pf •. objective" cri¬
^naay provide a from time to time is not clear.
approved it will be
done
our
with
(b) restrictions imposed against
imports from other countries by a to London, Mr. Walter R. Gardner.
group of territories which have a This
summary
deals with the
common
quota
in
the
Fund. meeting's
accomplishments out¬
side the field of quantitative re¬
Similiarly, the French Govern¬
ment raised a question about the strictions and
exchange control.
necessity for using quantitative A few quotations from the sum¬
restrictions to enforce exchange mary may be of interest here.
control regulations designed to in¬
"Not all the committees were
sure
that an exporting country able to reach
complete agreement,
received
specified foreign cur¬ in which case the different view¬
rencies in exchange for certain points were covered in their re¬
exports.
There was never any ports.
Even those that came out
question about the legitimacy of with agreed drafts of specific ar¬
such administrative use of import ticles often had to record
certain
quotas, but there was some little reservations on the part of one
difficulty in finding appropriate or another delegation.
But on
language.
On this point we took most of the major points a very
the position that the
substantial measure of agreement
Fund^Agreeor
was
was
since
these involved (a) quan¬
restrictions
which
had
as
tions.
as
collaboration
undertake
toward the ITO
from
far
with
length
close
to
to expect an attitude of aloofness
and
limited
"somewhat surprised
willingness
written agreement with the United
Nations had led these individuals
same
there
seemed
our
tion of
quantitative
balance
at
non-discrimination in the applica¬
ments
Luthringer,
"The first approach of the Fund
-
for
on
don
of
so
securing agreement
approval for use of
to
There was countries
which
provision,
may
become
difficulty in reaching agree¬ members of the ITO, and will seek however, is that; in which each %
member agrees that, in case of a
ment on this Article, particularly appropriate
amendment
of
the
on those parts
relating to incon¬ Articles of Agreement to permit fundamental disequilibrium in its
balance
of
vertible currency situations, and this, should such an
payments involving:
amendment
other countries in persistent bal¬
agreement was in fact not reached prove necessary."
ance
of
until after there had been general
payments
difficulties
Mr. Luthringer winds up his
which handicap them in main¬
agreement among the countries report
by
observing
that
the
represented on the .subcommittee United Nations personnel at Lon¬ taining employment, it will make
tions
(Continued from page 274)
left
some
question, for example, about the
necessity for providing excep¬
[The Monetary Fund and ITO
be
between' the
two incompatible objectives. Each
member also agrees to take what¬
,
illusionment. Those who fight to¬
305
*
While there
to
was
too much
their position
to be
disregarded,
there
was
danger
recognizing it the Confer¬
ence
would destroy the whole pur¬
pose
of the Charter, which was
to
break
down
the
multilateral trade.
ber
could
use
barriers
to
If any mem¬
protective devices
to whatever extent it considered
necessary
for purposes of national
development,
the Charter could
(Continued on page 306)
>
THE COMMERCIAL St FINANCIAL CHRONICLE
306
over
The Monetary
Fund and ITO
by-passed
sphere.
every
International
"The situation was
met by per¬
mitting exceptions subject to ap¬
ITO.* The draft
this is nicely
balanced between emphasis on the
value of bringing out the full po¬
the
of
proval
which accomplishes
of
tentialities
war-damaged
port trade and on relations with
non-members.
undeveloped
or
areas and equally
policy procedures such as freedom
of transit, tariff valuation, cus¬
toms formalities, marks of origin,
anti-dumping duties, and boycotts.
These and
some
other matters
emphatic recognition of the harm
fostering
that would be done by
uneconomic enterprises."
referred
to
General
the
Drafting Committee by way of a
report covering different points of
view."
i
U. S. Asks the UK a Question
work of
to
Mr.
Gardner's
of
discussion
intergovernmental commodity ar¬
escape clauses
in the proposed rangement provisions of the pro¬
charter's general commercial pol¬ posed charter is especially inter¬
icy provisions, Mr. Gardner ob¬ esting. He states in part:
follows:
;
-
Committee arrived at an
"This
/
.
struction
of
from direct
tation
and
pairment.
loans
obviously
for the recon¬
areas
suffering
now
necessary
the
or
indirect
war
devas¬
general economic im¬
There is need also for
long term loans to aid the less
developed countries in improving
their economic organization and
in raising their standards of liv¬
ing. These needs were generally
understood during and toward the
end
of
World
II
War
International Bank
the
and
created to
reached
on
draft
proposals gov¬
British,
erning most, but not all, of the
of commercial pol¬
delegation asked who was to be
the financial 'angel' and further
commitments
negotiate substantial reductions
tariffs, gradual elimination of
pointed out that arrangements of
this sort might lead to persistent
accumulation of stocks and failure
other aspects
The important
icy.
to
in
acceptable to the Bank, must fully
guarantee the loan.
Loans
made
considering
is
credit
the
member
nations
worked
and
Great
needs,
the
to
due
the
create
organizations
great
Vli'r1'"
conceived
who
to
the p
men* of
Bank and the Fund—and
two
the
—
heavy
a
or
guaranteed by the Bank must
be
for
the purpose
of specific
responsibility
projects of reconstruction or de¬
velopment, except in special cir¬
ducting their operations. The res¬
cumstances.
The
capital
and
over seven
a
of
the
half bil¬
lion dollars.
creased
approximately
to
dollars
when
eight
additional
those
upon
the
of
task
con¬
toration of world order and peace
no
small
measure upon
their courage, wisdom and success.
They must succeed.
This total will be in¬
billion
with
depends in
subscribed
Bank is
entrusted
rests
War
finance, and
postwar
even
finance up to this time, had to be
conducted on a scale and with a
transition
Forty of the nations which par¬
ticipated in the Bretton Woods
finance,
about
As
Conference
members
became
of
the Bank—two of them
recently—
and subscribed its capital.
Each
member appoints a Governor and
each
Governor
has
an
Alternate.
<
in fact raised by the
but the United
States
the
Twenty per cent of this amount
may be called hy the Bank for
working capital. Ten per cent, or
The
was
then
central
bank, or
comparable
agency
other
some
member itself
a
borrower,
its
of
liberality unrelated to peacetime,
mental
quantitative trade restrictions and
exchange control^ agreement was question
not- the
comprehen¬
a
important es¬ agreed
an
clause for members which
feel that they are injured by any
development which impairs any
object of the Charter. Under this
is
countries whose applications have
been accepted become members.
was
on
draft
on
inter-govern¬ The Governors, who meet once a
commodity arrangements.
year,
are
entitled to vote the
arrangements will constitute shares of the Bank's capital sub¬
something of a departure from the scribed
by their governments.
generally competitive commercial
There are also 12 Executive Di¬
principles of the Charter. In gen¬
clause the ITO may authorize an
rectors, each of whom likewise
injured
member
to
withdraw eral, they will apply only to has an Alternate. Each of the five
primary commodities in which it
specified concessions or obliga¬
members having the largest sub¬
tions;
but
any
member
af¬ may not be feasible for consider¬ scriptions to the Bank's capital
able periods to adjust supply to
fected
by. these withdrawals
appoints one Director; the re¬
demand.
They can be applied to
may resign from the ITO on 60
maining 35 members elect the
days' notice. This general escape other commodities <*;ijy if the ITO other seven Directors.
The au¬
that
exceptional
circum¬
clause was the chief reason that finds
thority of the Governors with re¬
the Australians agreed to forego stances justify such action.
spect to the day-to-day operations
"One question that would have
special escape clauses designed to
of the Bank has been delegated to
fit their particular needs in the been of great interest to the Fund the
Directors, who generally meet
employment and quantitative re¬ ana the Bank, had it been pursued twice a week to act upon the
striction sections of the Charter. in this Committee, was that of Bank's
business
and
consider
The financing ar¬
"In addition to these emergency buffer stocks.
questions of policy.
provisions and the sections on rangements would have had to be
The President is Chairman of
international in character.
The
"There is also
cape
ment channels, if
member
sive scale.
the London Conference relating
serves as
are
deal with them
Escape Clauses
In his discussion of the
It also proved im¬
possible to reach full agreement
on
drafts
covering commercial
were;
trade.
international
(Continued from page 305)
almost
in
be*
period of time, which are
to a
highly developed
a
essential
Thursday, January 16, 1947
the
Executive
He
Directors.
is
also the chief executive officer of
the Bank and,
such, is respon¬
sible for the appointment and su¬
pervision of the operating staff,
as
subject to the general control of
the
Directors.
able
Nov. 25.
became pay¬
The remaining
10%, called for payment in Feb¬
ruary and May, 1947, will bring
the
total
to
approximately one
half
billion
and
a
half
of
this
dollars,
the
dollars.
One
about $750,000,000, will be in gold or U. S.
currencies
tries.
sum,
or
remainder
of
in
other
member
the
coun¬
The
remaining 80% is sub¬
ject to call only for the purpose
of
Now
that
from
in
are
we
war
to
the
peacetime
consideration
must
be
given to the careful use of credit.
I
said
once
"Credit is
many
little like
a
ago3
years
drugs.-
some
In the hands of
people who know
it
useful and
healing thing in the world. But
like
those
drugs,
with misuse,
its powers but also its dangers
is
the
most
helpful,
with carelessness and with habit¬
ual
indulgence to
become
the
excess,.it can
demoralizing,
and
destructive
most
disintegrating
agency."
meeting the Bank's obligations.
Restoration of International Trade
Members
Individually
Obligated
for Capital Stock Subscription
short
A
in
time
article in
an
it
was
stated
New York
news¬
ago
a
that the question had been
raised as to whether, if one or
defaulted
members
more
in
the
their sub¬
scriptions, the Bank could make
additional pro rata calls until the
amounts paid in by non-default¬
ing
members
up
to
the
full
amounts of their respective sub¬
scriptions should be sufficient to
meet the obligations of the Bank.
In addressing the meeting of the
payment
Life
calls
of
Insurance
America
took
I
on
Association
to
occasion
of
in Decem¬
at New York
refer
Both
to
countries
our
concerned
paper
ber,
The Articles of Agreement pro¬
$750,000,000,
by
finance.
are
interested
and
deeply
in
the
restoration of international trade.
Canada,
as
a
result of its accel¬
erated industrial
pends
one-third
of
This
ness.
growth,
now
de¬
export markets for about
on
volume
its
that
means
of
the
busi-,
world
is depending
is
upon
greatly on you, as itfor essential supplies
credit needed to acquire
Business is good only when
them.
it
us,
the
and
is
both
for
good
parties
and
financial
machinery is effective
only when it is adjusted to the
fundamentals
tions.
of
existing
situa¬
Finance is essentially a part
of the mechanism for the produc¬
tion and distribution of goods. To
quoted the opinion be successful, it must always be
general most- to adapt production to the market.
vide that the staff shall be re- of
the General
Counsel
of the conducted with that fundamental
favored-nation
treatment, non¬ The Committee then decided that
cruited^on as wide a geographical Bank that the obligation of each' conception.
discriminatory administration of buffer stocks were only one of
basis as is practicable.
Your
This, of member on its subscription to the I1
country and ours wqre
state trading enterprises and ex¬ several -measures that might be
course,
involved some difficulty capital of the Bank is independent blessed with the power to lend
pansion of trade by state monopo¬ employed to preserve stability in and
delay, but it is important that of the obligations of other mem-' great strength to the war against
lies of individual products, con¬ the markets for primary commodi¬
the staff should be international. bers. In case some members fail dictatorships.
Now, likewise, we
sultation to limit subsidies injur¬ ties and, hence, could better be
A fine group of men has been to respond to a call on their sub¬ must lend
our
strength toward
ious to international trade, and left to be considered in connection
with specific commodity
agree¬ brought together and I have con¬ scriptions, he stated, the Bank| winning the peace. We have both
more detailed provisions govern¬
tariff preferences,
ing export subsidies—all of these
were embodied in agreed drafts.
ments.
The possible use
of buffer
this connection is
stocks in
nowT
being explored in the food and
agriculture discussions in Wash¬
complete state monopolies of inn ington."
of Russia,
prepared
on
Becaues of the absence
drafts
no
were
•
••'
—i-
—;—;
fidence in the ability and
ter of the
charac¬
personnel.
Chester
A.
McLain,
an
able
lawyer who had had extensive
experience abroad as well as at
home in matters relating to in¬
finance, was selected
as General
Counsel. He came to
the Bank from the law firm of
ternational
World Bank and U. S.¬
Canadian Cooperation
Pineo, is Director of the Loan De¬
partment. Until recently he was
an officer of the Royal Bank of
to Canada in charge of their foreign
(Continued from page 274)
exporters. This amendment was
adopted by the Congress.
i Let me read you a short extract
from my testimony before Con¬
Cravath, Swaine & Moore in New
York.
A
Canadian, Charles C.
enough periods of time
and justify the pur¬
chase of our products.
It is in¬
long
encourage
branches
and
is
a
man
of
com¬
petence and experience. Mr. Pineo
primarily to help our own is ably supported in the work of
gress on this proposal, given on industry, our own labor, our own his department by Arthur S. G.
finance, and thus our own na¬ Hoar, who came from the Bank
Feb. 23, 1919:
tional wellbeing.
of England.
The Treasurer, D.
"The countries associated with
"Nevertheless, a prompt restora¬ Crena de Iongh, formerly was
us in the war have used up an im¬
President
of
one
of
the large
portant'part of their resources in tion of international trade will do
banks in the Netherlands.
the long struggle, especially when much more. It will enable Europe
to restore its industry and em¬
A French economist, Leonard
we consider their resources from
the point of view of international ployment of labor, and thus to B. Rist, is' Director of the Re*
hasten
its
political and social search Department.
trade. They must economize na¬
Before the
tionally, and work to regain their peace. Unemployment and hunger war he was Vice President of
•
industries as must we,
lost peace
as
are
the
surest
endured
have
"They
a
longer
and greater economic and finan¬
cial strain than we. Left to the
of
will take
their own resources, it
them a long period to
build up their
international com-
merical relations.
Unless we ex¬
tend credits to them,
they will be
buy
can
"We need at once and on a
of
an
our
of
social
I
continue to make pro rata
calls, up to the full amount of its
capital' subscribed
and
unpaid,
until the amount received by the
may
Bank is sufficient to meet its ob¬
ligations
it
on
or
for funds borrowed by
guarantees made by it.
The Bank's
Debentures
capital,
which can be used as a revolving
fund for the making of loans, it
will be necessary for the Bank to
obtain the funds required for its
lending operations through the
sale of debentures in the public
markets
time
from
the
present
the
markets of the
and
at
to time.
least,
this
For
means
United States
possibly also of Canada.
Bank's
The
debentures
behind
them
will
serves
however*
continuing
to serve
pending the election of my suc¬
and surplus.
-
:
-
Operation
-
dest^
a
position to
extend credit. lor jty, to: make, contracts; extending vestors through the usual invest¬ Bank1 are*>large,
and
meet
less
no
than
credit
is
re¬
quired to help restore the devas¬
tated
areas
facilities.
and
their productive
In other
words, we must
help them to help themselves.
U. S.-Canadian
Cooperation
Essential
This
postwar
cooperation
is
to your country and
mine. We learned it through sheer
necessity during the war.
When
the
stake
is
self-preservation;
nothing
new
as*
came
Even
members of the U. S. armed
forces.
.
'
.
We joined Canada in the con¬
struction of air and naval bases
in Newfoundland for North At¬
lantic
^
defense and transferred to.
it anti-aircraft and seacoast
guns
for the defense of your
maritime
provinces.
tions
Alaska
to
Study and preparar
made tor, air routes to*
and ferry routes
were
Hudson
Effort to Secure Conservative
cessor.
We cannot sell
demand payment now, be¬
to
Money, of course, is not
enough. Production of the things
needed abroad, as well as at home,"
is essential. For, without full pro¬
duction. money is an idle invest¬
ment.
The availability of mate-
tion to the need.
The objective of the. Interna¬
The resources and facilities of
Clearly, the framers of the Ar¬
tional Monetary Fund, the char¬
the Bank are solely for the ben¬
cause our customers have neither
ticles of Agreement intended to
ter of which, like that of the
efit of its members. It niay make
the gold nor the goods nor secur¬
Bank, was framed at Bretton or
make' every - effort to assure a
participate in direct loans, or
ities marketable in this country
Woods, Is to promote- stability; in it
'
may guarantee in whole or in conservative operation. * 1
with which to make payment. :V international
exchanges. FluctuThe means at the disposal of the
part loans made fey private in¬
"We should put our people in fating, cmi^ies
we
needs
unison
before the
scriptions.
The Commission
of
United States entered the
conflict,
1 to.. 1%% which the Bank
over
12,000 U* S. citizens had
is required to charge on all loans
joined your armed forces. After
must be held in liquid form as a
our
entry, many Canadians be¬
special reserve to meet the Bank's
,
if
world
in
from
hot available.
Bretton Woods Objectives
the
acted
them.
not
.
were
have
only its every effort of which human be¬
loan portfolio, its reserves and its ings are capable is brought into
action.
The scale of ocoperation
paid-in capital on hand, but also
by our two govern¬
the liability of the members for developed
ments in the war was in propor¬
the remaining 80% of their sub¬
have
similar¬ dels, is Secretary of the Bank. In
reserve
should
the Canadian Army,- from which liabilities.: This
he was released early in 1946, Mr. atnOunt to a substantial sum after
the first years of operation.
The
Mendels was responsible for mill*
chinery of production and the dis¬
portfolio, together* With reserves,
ruption of economies were on a tary estimates, finance and eco¬
arising . from operations
nomic studies. Harold D. Smith, surplus
vastly greater scale. But, when
formerly Director of the Budget ahd subscribed capital, cannot be
your government loans arid ours
less than 200% of the Bank's ob¬
of the United States, who accepted
cpme to an end, disorganization
The Bank's loans and
the position of Vice President at ligations.
of international trade wOuld fol¬
guarantees cannot exceed its un¬
low if other facilities for meeting my request, tendered his resigna¬
tion whfen I left the ©anki 'He is, impaired subscribed capital, re¬
large
recognized
rials
Aside from its working
ities with the present. In World
War II the destruction of the ma¬
outlet for great quantities
products.
Morgan & Cie. in Paris. A lawyer
Montreal, Morton M. Men-
from
This picture has many
from us largely
restore their ex¬
the needs
ports and sell to us and others.
to
until they
unable
scale
sources
disorder."
well.
limits
tended
this article.
across
Bay and from Labrador
Iceland and the
Greenland,
United; Kingdom.. We also joined
in
the
construction of
and facilities"
air. bases*
throughout Canada
for combined operation,
Committees to further the wareffort were organized to
enhance
our
mutual military
they should he .Many Operational plans
efficiency.
Were
joini
»
#1 -Volume
Number 4560
165
'V
-
THE COMMERCIAL & FINANCIAL CHRONICLE
1
of
efforts
But
your forces and ours,
had
no
choice
as
to difficulties to upset
major con-?
VE-Day, plans were per¬ whether we should or .should hot siderations, if we are wise enough
for
training a Canadian be involved, We acted from com¬ to build upon the common founda¬
Army
division
in
the
United pulsion. The|e waS no question tions achieved during the war and
States to work with the U/ S. as to whether or not we wanted strengthened now
by our common
forces in the Pacific against Ja¬ to fight. Our selfpreservation was
responsibility toward the World,
pan. Military personnel from both at stake.
we may be able to convince other
we
■f?'After
the
and homes that
cars
countries
trained
were
in
"V>"-
each
schools, and the exchange
intelligence techniques and in-
"formation
extensive.
was
A
vessels
in
the
North
All
;
things
our
during
ress
done
were
are
can
a
of
the
the
A
war,
that
similarly interwoven
after
that
still
capable
strongly for
before
the
v
-
threat, if it
Canada
has
from
war
us.
have
while.
its
come
own,
Motors
a
considerable
cline. At the
way
that
same
good
a
wealth.
the
British
directions
sound
are
own
is
to say
that I expect
very
whether
automobiles might price
themselves out of the market. I
ex¬
tremely intense, which is shown
by the fact that a very large pro¬
portion of the automobiles sold
are
paid for in one way or an¬
other at
price very much above
the ceiling price. I don't mean to
say that the manufacturer gets it;
ties which
he
a
doesn't.
He
would
be
much
entitled to it than the person
more
who does,get it. If the manufac¬
turer
doesn't
get
it, the next
claimant on the money ought to
interests and with
policy.
ufacturer gets it, the unscrupu¬
lous black market operator gets it
and the prices paid are a good deal
man¬
higher on the average than those
quoted.
burden of leadership. Too often
The ordinary rules about
higher
leadership, even where it has the
understanding
and
knowledge, price discouraging demand are
merely
either lacks the ability or fails to
recognize the necessity of keeping
the people informed promptly and
comprehensively.
An
informed
in the very
neai;
ately,
of
if
mand.
It
simply determines who
will get the goods, and it will take
at least a year, and probably
long¬
educational institutions and of the
er,
I
the newspapers, the
, weekly
and monthly magazines
.and the publishers of books.
If
books on international affairs are
Y4 to be published only at $3 or more,
.press.
i
!•
mean
they cannbt reach the*
masses of
countries If newspapers negleet international news. in the
areas less closely in contact with
our
t
i
foreign business and travel, they
>
before that kind of demand is
satisfied.
*
IN '47
Davenport, Director, Di¬
vision of Economic Development,
New York State Department of
Commerce—I expect that the first
half of '47 will show some uncer¬
tainties in movement
i;; ranee
regarding matters about
%which it is vital that they be in¬
cur
you
and
we
f: have found" ourselves at war.
^Ipeaceful hatiohs as wcare,desirw
tng *to" live and*
in
^eace
j $nd freedom, we found ourselves
;
inevitably iiivolved-in w6rld'coh%
flicts^ We
i
not
be
years
were, too slow in understanding the causes and forces
which swept us into these
wars.
*
D. H.
readjustment
Twice in 30
#
PREDICTS RECESSION LATE
Sfare keeping'.their 'people In ign©
formed.
very prosper¬
and that 1948 will see
merely a minor type of recession,
similar to 1921-1922.
year,
*
SEES
»i»
or
into
over
1948,
earlier.
RECESSION"
Solomon
full-si2e depression. On the con¬
trary, I do not expect a major de¬
pression immediately; I do not
expect 1929 to be repeated, and I
doubt whether 1920-21
will
be
favorable
they
otherwise
be
if
our
I
essentially in consumers'
cushion
after
shock.
*
DOWNWARD
J.
*
<
AFTER MID-'47
Paradiso,
Acting
Structure
;i||
•
WILL BE A YEAR
READJUSTMENT"
of 1946 and
1947 will
beg
of recession and readjust¬
ment in prices, led by agriculture.
year
There will also be declines in in¬
Chief,
Division,
dustrial
prices and in) industrial
production as a whole. Thus there
should
justment
the
>,*,
Alexander Sachs, Economist —
The postwar replenishment boom
already reached its peak in the
merce—I
that
*
f
inevitable
OF RECESSION AND
United States Department of Com
feel
first
'
*
"1947
a
TURNING POINT
the
■
summer
*
Business
be
of
—
goods.
SEEN
Fabricant,
Professor
University
this mild readjustment—
or
which
of
because I think it will be mildwill
L.
of
would
about,
elements
not present in 1920-21. One
these elements is the savings
which I consider to ba d
very good
were
IN
1947.1 should guess it would come
toward the middle of the year.
This
recession
we
are
talking
SOME¬
National
Economic
Research,
Inc.—I think the
prospects for
1947 would be a lot better than
Bureau
Magill,
Columbia
a
fully experienced, because of vari¬
should be inclined to suppose that
there will be some recession in
*
DEPRESSION
WHERE AHEAD
trade
turning
point might very well come after
the middle of 1947, more probably
in
the third quarter of the year
than later. Expenditures on hous¬
of the read¬
emerge out
recession
tenable
more
cost-price relationships in produce
tion, realignment of the economy
unions
did
not
push
too
from nondurable to durable goods'
hard
for higher wages and were
content to increase their incomes
prices
and
were
content
to increase their incomes
by more
output,
if they
efficient output, and
not afraid to make
more
were
inyestments
I think we
depression
...
going to have
though I don't
a
know
*
*
.
•
Jules Backman, Associate Pro¬
fessor of Economics,
School of
Commerce, Accounts and Finance,
New
York
several
prices
University—Here
specific
are
forecasts.-
peak.
Nonfood
higher
raw
Production
are near their
prices
because
both of
are
Food
past their peak. I think
that clothing prices
are
going
higher
of
costs,
material and wages.
is
going to remain
or
and
that
recession will
-a
oc¬
in the latter half of '47. I do
expect
the
readjustment to
long as it was
so severe nor so
in '21.
YALE ECONOMIST
e
^
any recession takes
place, it is go¬
not deep, and
ing to be short,
nothing like 1920-21.
There
four
are
-
factors
which must be given consideration
in any evaluation of the business
OPTIMISTIC
FOR 1947 h —
'47
that supply will catch up with de¬
mand much more quickly than
generally
anticipated.
Much
higher prices and increased pro¬
duction
will
melt
the
so-called
backlogs of demand very, very
quickly. Win, lose or draw, there
will be few if any backlogs for
industry's Christmas next year.
*
SIX
TO
*
NINE
MONTHS
Helen
al
Slade,
President,
New
Chapter, American Statistic¬
Association
so
the
ket.
of
The increase in inventories.
spending,
The
imminence
of
new
—
Today, various
ness
demands.
4.
The
that
In
the
stock
past,
sharp
market
former
I
time
as
of
believe
we
did that
excessive
face
average
Group to Study £ft^.
Universal Training
A
committee of nine
President Truman
Dec. 19, ad¬
the President
evidently hoped in
this way to find a plan acceptable
to those who do not favor the
proposal.
The civilan group, said
Press, which in-?
eludes churchmen and educators,
the
Associated
consists of:
Joseph E. Davies, former Am¬
Poling, Boston, edi¬
tor of "The Christian Herald."
"WE WILL HAVE A
RECESSION"
Everett
in
fol¬
on
vices from Washington to the As¬
sociated Press stated, adding that
bassador to Moscow.
recession in 1947.
mar¬
declines
who will
study of universal mili¬
training was appointed by
a
at
products
have been
RISE
for 1947.
Dr. Daniel
possibility
will be priced out of the
ket.
the
disastrously
least six to nine months of busi¬
wage
PRICES
Lionel D. Edie, President, Lionel
D. Edie & Co.—We have a lot of
tary
OF
BUSINESS RECESSION COMING
to end
3.
WILL
DROP AS INDUSTRIAL
make
$
1. The
mar¬
*
PRICES
is
outlook. They are:
2.
*
FARM
*
signals indicate that we are in the
last phase of prosperity. Although
the opulence of 1946 is not likely
decline in the stock
*
THINKS
adjustments to come in 1947. Ag¬
Raymond Rodgers, Professor of ricultural
prices are too high; they
Banking, School of Commerce, -ought to come down and will cdme
Accounts & Finance* New York
dowh. But A think the industrial
University—If the wage demands prices are too low and
ought to
turn out to be moderate, I expect
go up and will go up. The net
lower average prices and lower effect will
be to leave the BLS
total
production for the entire general
wholesale
price
index
year 1947 than in 1946. Also, I say about what it is now as an
York
main
' *
LATE
.
FORECASTS
FOR 1947
Sl!
FEW BACKLOGS SEEN FOR
are
.
when.
$
SOME SPECIFIC
future, immedi¬
only a burden of political leader¬
ship, but also of the leadership in
,
ous
a
a
possible, and have the
to pay for it* you can't talk
about high price discouraging de¬
The
is not
people
have
money
rapidly moving world.
the
statements
If you
special
situation where a large number of
people want something intensely
to command political support
of
long-run
tendencies.
electorate is necessary in a demo¬
cratic -country if sound
policies
education
Law,
high. The main factor interrupting
production is going to be strikes.
be the government. There ought to
I think demand is
going to stay
be a tax on these things. But since
high. I think that to the extent
harmony
widely distributed among the peo¬
ples of our countries. This is a
<
1947
than
Rosweil
price conditions, and partly owing
to political uncertainties.
But, bar¬
ring the labor situation, I think
probably not
the year after. The demand is
What is needed in international
relations is better understanding
a
1947 Outlook
would get a recession of a more
serious import in '48
partly owing
to the readjustment of market and
feel quite certain that that couldn?t happen next year,
Common¬
in
up
neither the government nor
■'* in
of
it did"
Then,
billions decrease in the rate of in¬
mean
go
might
up,
Leadership and Publicity Needed
are
end
rather
materials.
break of considerable size is likely
to follow, and I think that this%
break will occur in the first half
of 1947. This does not mean a
ventory accumulation can be off¬
set by a rise in these types of ex¬
penditures.
go
months of the wholesale prices.
The question was raised as to
respects the ties that
one of the nations
But there
our
guess, and that when it
it will be wofge thain rriost
people have guessed. I would put
the timing somewhere toward the
comes
even go
as
higher
to
to
far, but what
I mean is that the
turning point in
the cost of living
may lag a good
many months behind the turning
pursuit of your interests in
with
people
necessary,
izations did not push too hard for
it
arise from the physical conditions
of your existence and ours that
are
no
less binding and strong.
The
nations.
is that the termination of
this boom is not so soon as most
guess
while; and
a
I don't
go up because
living
*
both
for
Economist,
Corp.—My
Steel
continue for
farther than
in building
dominance, and improvement in
ing will probably increase signif¬ labor productivity as a basis for a
hopefully longer postwar expan¬
icantly in the coming year. Taken
sion boom than the replenishment
by more work and more efficient together with plant and equipment
boom.
work; if our big industrial organ¬ expenditures, not much of the $7
continue
as
composing
manufactured
to
costs of production have been
raised. The cost of
liberty. The United States
you
time, it is likely
many
goods will have
is derived from ideals of human
freedom and from the promotion
of education,
health and well-
bind
freedom
conditions
States
economy, partly owing to strikes,
the upward' trend of prices will
even
if the
wholesale price index went down.
econom¬
been
knows and
can
good many other raw materials
that will show a considerable de¬
population. Beyond the resources
of men, materials, skills and ef¬
ficiency, there is the strength that
ordered
Economist,
Corp.—We
a
proceeding
for
many years. The war merely ac¬
celerated the pace of an existing
trend. You are strong in natural
resources and you have a people
.capable of using them efficiently.
Therefore, the part you are play¬
ing and will play in the future
cannot be measured in terms of
.
more
living
that 1947 will be
Tucker,
I agree with that. I think
there are
the past few years. The rapid in¬
dustrialization made necessary by
had
:!:
-
decline, for
example, in agricultural prices,
which a good many
people seem
to think likely. As far as I know
anything about agricultural prices,
Such
remarkable
a
S.
General
suddenly.
in
recession, we are
moving forward
ically and internationally, during their
war
better
Smith,
MID-1947 FORECAST
COSTS
Rufus
de¬
may
occurs,
into
come
all
on
FORESEES RISE IN LIVING
it confronts both of
upon us very
a
Sji
threat confronts either of
a
of
now
veloping close, and friendly rela*.tions, politically and economically.
The new importance of the air
and
the
stratosphere makes a
.boundary mean less than ever.
a
make notable contributions to
better world with
and
(Continued from page 272)
The border of political sover¬
eignty did not prevent both na¬
us,
Nations.
Symposium
,,
When
United
through continued
and
cooperation,
we,
understanding
United
"SOME
and for the future.
tions
and
you
Bradford B.
mutual and joint se-
terests in the work of reconstruction
will
SHARP DECLINE IN LATE *47
PREDICTED
to
especially
W: toward the end,' so that security
.for either of us means security for
both of us. Our positions and in¬
<
countries
It may well achieve far more than
that. If we do not allow minor
'techniques
wereA .de¬
veloped which made rapid prog-
•
•
two
our
cooperation
members
At¬
$curity.
•
working
nations that similar good relations
are possible between all
peoples
of good wilt I am convinced that
pro¬
•;»'' * I *
V
ous
these
.promote
..
not only protect our continent, but
will enhance our usefulness as
lantic is known, but not as widely
as it should be.
:
strong
between
The
great part that your Navy played
in the arduous duty of convoying
Allied
-<?
An Example of Cooperation
other's
of
••
are
duced.
fected
.
307
■■
E.
lowed
by reductions in business
activity. Such stock market de¬
consumer
clines have reduced the amount of
money available for purchases of
in
as
fast
as
—
Because
income has not gone up
prices have, the increase
purchases will be
consumer
-
Dr. Harold W.
Dobbs, President
of Princeton University.
Samuel L
Rosenman, New York
homes, cars, furs, and similar
items, and, hence, because of the
much too small to take the place lawyer and former special coun¬
of declining inventory accumula¬ sel to presidents Roosevelt and
Truman.
tion
and
declining government
reduction
purchases. While the basic demand
of
purchasing
power,
Mrs.
Anna
Rosenberg,
New
fox construction is enough to fill York public and industrial rela¬
business. I do not think that this the gap* construction activity will tions consultant.
close relationship applies at the not rise fast enough to replace in¬
Charles E. Wilson, President of
have had
an
present time.
adverse effect upon
The
decline
in
the
ventory
accumulation
just when
the General Electric Co. and for¬
inventory accumulation tapers off. mer WPB Vice-Chairman.
If this guess is correct, we will
Truman K. Gibson Jr., Chicago
tion in black market
activities, have a recession. If we do, we will
lawyer and former civilian aide
will mean a reduction in demand probably
get; a small amount of to the Secretary of War.
for furs, jewelry and other
high- selling off of inventories, which
VThe
President
assigned
the
will prolong the recession for a
priced items. However, the vol¬
Commission the tasks of:
time. But the recession will be
ume of purchasing bower current¬
1. Studying "the tbasic need as
neither serious nor prolonged.
well as various plans for universal
ly generated and that created as a
*
*
*
military trgining in relation to
result of past
budgetary deficits Is BREAK "OF CONSIDERABLE
dver^nrplanhing for the national
so
great that, unless goods are
SIZE" FORECAST /
security."
>
priced put ,;of the tharkeit, There
Julius Hirsch, Economist—I ex¬
2. Submitting recommendations
will be ample
money to buy all pect that in some sectors of the to the President.
'Stock market, and also the
reduc¬
,
O.
Glenn
Saxon,.;
Professor
of
Economies, Yale fJnivorsity r-r I
think we can have a very -optihiistic
outlook lor
1947.
I
would
be more inclined fo think that you
1
Rev. Edmund A. Walsh,
Vice-President
of * Georgetown
National University, Washington.
Hagen,
Planning Association
r
The
_
■w;
•
THE COMMERCIAL & FINANCIAL CHRONICLE
/wV^-Mv-.y
308
INDICATES ADDITIONS SINCE PREVIOUS ISSUE
•
N« Y.
June 26 filed 132,740 shares ($1 par) common stock.
Underwriters—Herrick, Waddell & Co., Inc., and First
•Colony Corp. > Offering—To be offered publicly at $5
a share.
Proceeds—Company will receive proceeds from
the sale of 68,880 shares and four selling stockholders
the proceeds from the sale of 63,860 shares.
Company
also will receive proceeds from the sale of 20,000 war¬
rants for common stock to underwriters at an aggregate
•>price of $200.
Of the net proceeds ($292,940) $50,000
will be used to pay current bank loans; about $20,000
will be used for machinery and equipment, and the re¬
Acme
;
Electric Corp., Cuba,
;
capital.
mainder for working
•«
Chicago. Offering—The debentures will be of¬
publicly. The common shares will be issuable upon
the exercise of stock purchase warrants for purchase of
common stock at $2 a share above the bid price of such
common on the effective date of the registration.
Com¬
& Co.,
fered
will sell warrants for 25,000 common
shares to the
warrant. The remaining war¬
officers and employees of the com¬
underwriters at 10 cents a
rants will be sold to
Price—Debentures at 98.
pany.
Atlantic Refining Co.,
$20,000,000 of 7%
share plus accrued
York.
Products Co.,
American Soil
to
Inc., N. Y.
Proceeds—Company will
$1,025,000 of proceeds of debs, for payment of an
indebtedness to Bankers Trust Co., New York. Balance,
will be added to working capital. Offering postponed.
pref¬
New
Offering—Stock will be offered for subscription
stockholders on the basis of one share of
common
preference
Dec. 27 (letter of notification)
541,818 shares of 7%
preferred stock (par 500) and 290,909 shares of Class A
common (par 100). Latter amount includes 20,000 shares
which will be offered to underwriter as an investment.
Underwriter—Henry Hall Marshall, 280 Broadway, New
York. To be offered in units of 2 preferred shares
and one common share at $1.10 per unit. Proceeds for
American Water Works Co., Inc., N. Y.
Philadelphia
Oct. 29 filed 293,000 shares ($100 par) cumulative
erence stock.
Underwriter—Smith, Barney & Co.,
dividends. Indefinitely postponed.
%
Aug. 22 filed $1,500,000 of 5% sinking fund debentures,
due 1961, and 50,000 shares
($1 par) common stock.
Underwriter—Ames, Emerich & Co., Inc., and Dempsey
pany
other funds, will be used to redeem
cumulative preferred stock at $115 a
stock
for
each
nine
shares
held.
Unsub¬
scribed shares will be sold to the underwriters who will
reoffer it to the public.
Price by amendment. Proceeds
$15,540,000 of the net proceeds will be
applied to redemption of the company's cumulative pre¬
ferred stock, convertible 4% Series A, at $105 a share.
The balance will be added to general funds for corporate
purposes including repayment of obligations, acquisition
of additional production, and expansion of refining,
transportation and marketing facilities. Offering tempor¬
arily postponed.
—A maximum of
general corporate purposes.
";
Corp., Bedford, Mass.
Aerovox
Registration
in
Now
Securities
Thursday, January 16, 1947
h
2,343,105 shares of common (par $5) plus
an additional number determinable only after the re¬
sults of competitive bidding are known. Underwriters—
To be filed by amendment.
Probable bidders include
Dillon, Read & Co. Inc., White Weld & Co., and Shields
& Co. (jointly), and W. C. Langley & Co. and The
First Boston Corp. (Jointly).
Offering—Price to public
by amendment. Dec. 23 the recapitalization plan was re¬
jected by the SEC and the company was allowed 30 days
in which to file amendments providing for additional
payments to the various classes of security holders in¬
March 30 filed
Babbitt
(B. T.), Inc.,
New York
207,937 shares ($1 par) common. Under¬
writers—Headed by Lehman Brothers, Goldman, Sachs
& Co.; Wertheim & Co. and Burnham & Co. Offering—
Of the total company is selling 66,000 shares and re¬
maining 141,937 shares are being sold by certain stock¬
holders. Price—By amendment. Proceeds—About $500,000 of the net proceeds to company will be used to
reimburse company for expenditures incurred in the
construction and equipping of a new plant at Clearing,
111. The balance will be added to general funds.
7
Jan
volved.
filed
use
Air Lanes,
Inc., Portland, Me.
(letter of notification) 15,000
Oct. 9
shares each of pre¬
Offering price, $10 a preferred
share and 1 cent a common share. If offerings are made
In the State of Maine, they will be made by Frederick
C. Adams & Co., Boston.
To complete plant and equipment and to provide working capital.
and
ferred
,
common.
American Zinc,
(letter of notification)
Price—50 cents a share. No
Proceeds—Working capital.
amendment.
development.
American Broadcasting Co., Inc., N. Y.
June 27 filed 950,000 shares ($1 par) common stock.
Underwriter—Dillon, Bead & Co. Inc., New York. Offer¬
ing—A maximum of 100,000 shares may be sold by company to persons, firms, or corporations With whom the
corporation had network affiliation agreements on March
31. The remainder will be offered publicly.
Price by
amendment. Proceeds—To prepay notes payable to ac¬
quire radio station WXYZ, to construct broadcast trans¬
mitter for station KGO at San Francisco and for working
,
by amendment. Offering of preferred at end of January;
common may be withdrawn
Price—By
Offering in¬
Basic
Western Gas Co.
16,197 shares of common stock
5 filed
Shares
Price by amendment.
the public.
are
being gold
by six stockholders.
Co., Chicago
July 12 filed 350,000 shares
Beaunit Mills, Inc., New
preference stock, Series A; 300,000 shares of convertible
second preference stock,
common stock (par $5).
being sold by St. Regis Paper Co., New York, and the
remaining 40,000 shares are being sold by I. Rogosiu,
~
President of Beaunit Mills, Inc.
Bell & Gosset
•••
American
13 filed
Jan.
.
'
Gas
Electric Co.,
&
840,057 shares
New York
by Electric Bond & Share Co., parent.
Underwriter—
None.
Offering—The shares will be offered for sub¬
scription to Bond & Shares common stockholders in the
ratio of .16 of a share of American Gas common for
each share of Bond & Share common held.
Price by
stock¬
Proceeds—Proceeds go to the selling
amendment.
holder.*
.
...
American Locomotive Co., New York
July 18 filed 100,000 shares each of $100 par prior pre¬
ferred stock and $100 par convertible second preferred
stock. Underwriting—"Union Securities Corp., New York.
Price
by
Proceeds—Net
amendment.
Artcraft Hosiery Co.,
($10 par) common, owned
Corp., and Kibbon, McCormick & Co. Offering «*100,000 shares will be offered to the public at $9.50 a
5,000 shares will be offered by the
son
share. The remaining
to its employees who are not now shareholders
share. Proceeds—The proceeds from the sale
company
proceeds,
with
upon
will be used to pay
principal and interest on debenture
notes and reduce loans.
Berbiglia, Inc., Kansas City, Mo.
41,000 shares of 5%
Offering price,
$6 a share. Underwriter—Estes, Snyder & Co., Topeka,
Kans. To pay outstanding indebtedness and expenses andi
to open five additional stores in Kansas City, Mo. Offer¬
ing postponed indefinitely.
Sept.
(letter of notification)
12
cumulative convertible $6 par preferred.
Berg Plastics & Die Casting Co., Inc.
conversion of preferred. Underwriter—New-
(letter of notification) 75,000 shares (10c par)
Price—$4 a share. Underwriter—E. F. Gilles¬
pie & Co., Inc. Proceeds—For acquisition of machinery,
tools and raw materials, and for working capital.
Oct. 31
common.
burger & Hano, Philadelphia. Price—$25.50 a preferred
share and $12 a common share. Proceeds—Company will
proceeds from the sale of all of the preferred ;
and 100,00 shares of common. The remaining 50,000
shares of common are being sold by three stockholders.
Estimated net proceeds of $2,300,000 will be used by
the company to pay off bank notes of about $1,100,000
and to purchase additional machinery and equipment
in the amount of $1,200,000. Offering date indefinite.
receive
Birmingham Electric Co. (1/17)
Company
is inviting bids for the purchase of 45,478
preferred stock up to 12 noon (EST),
shares of 4.20%
Jan.
17,
at Room 1852, 2
Rector St., New York City.
Boston Corp.; Smith
Probable bidders include The First
Barney & Co.; Lehman Brothers; Kidder,
Sale originally scheduled for Jan. 7.
Peabody & Co.
*
☆
—
Corporate and Public Financing
at $8.30 a
Philadelphia
Sept. 27 filed 53,648 shares^$25 par) 4%% cumulative
convertible preferred and 150,000 shares ($1 par) com¬
mon. It also covers shares of common reserved for issu¬
ance
(1/20-23)1
filed
*
•
Co., Morton Grove, III.
105,000 shares ($5 par) common stock.
Underwriters—Ames, Emerich & Co., Inc., Lee Higgin30
Dec.
~
t
York
Sept. 27 filed 180,000 shares ($2.50 par) common. Under¬
writer — White, Weld & Co., New York. Price — By
amendment: Proceeds—Of the total, 140,000 shares are
(no par) cumulative first
Series A, and 1,355,240 shares
Underwriter—Kuhn, Loeb &
Co., New York.. Offering—The 350,000 shares of first
preference stock will be offered in exchange to holders
of its 532,996 shares of $6 cumulative convertible prior
capital.
preferred stock at the rate of 1.4 shares of first prefer¬
American Building Corp., Dover, Del.
ence stock for each share of $6 prior preferred.
Share*
of first preference not issued in exchange will be sold
jfov. $ (letter of notification) 20,000 shares each ($10
par) 5% cumulative preferred and no par common. Price, * to underwriters. The 300,000 shares of second preference
stock will be offered publicly.
The 1,355,240 shares of
$10 a unit consisting of one share of preferred and one
common
will be offered for subscription to common
chare of common. Underwriter—E. M. Fitch & Co., Philastockholders of the company in the ratio of one-third
delphia. Proceeds—For additional machinery, working
of a new share for each common share held.
Unsub¬
capital and other corporate purposes.
scribed shares of common will be purchased by the
underwriters.
Price—Public offering prices by amend¬
American Colortype Co., Clifton, N. J.
ment.
Proceeds—Net proceeds will be used to retire all
Aug. 12 filed 30,000 shares ($100 par) cumulative pre¬
unexchanged shares of $6 prior stock and to redeem its
ferred stock.
Underwriter—White, Weld & Co.
Price
outstanding 7% preferred stock.
thy amendment.
Proceeds—Net proceeds initially will
George Eastwood, President, in letter to stockholders,
be added to general funds, however, the company antici¬
Dec. 22 said "we have I come to the conclusion it will
pates it will use the funds for its building and expansion
not be necessary to issue any additional shares of com¬
program. Offering date indefinite
mon stock" as part of company's refinancing plan.
.W
.
Inc., Cleveland, Ohio
26
working capital.
-
Armour and
Food Materials,
(letter of notification) 5,000 shares (no par)
common, to be offered to stockholders; 295 shares of
($100 par) preferred, 4,750 shares (no par) common and
$50,000 10-year 5% debenture notes, all to be offered to
the public. Prices—$5 per common share to stockholders;
$10 per common share to public, $100 per preferred share
and debentures at face.
No underwriting.
To increase
Nov.
(par $5).
Underwriters—Rauscher, Pierce & Co. Inc., and E. H.
Rollins & Sons Inc.
Offering—Stock will be offered to
June
shares of 4% preferred stock (par
$100) and 200,000 shares of common stock (par $1).
Underwriters—Kidder, Peabody & Co. and Bear, Stearns
& Co. Proceeds—Will go to selling stockholders. Price
definitely postponed.
Arkansas
500,000 shares of common
underwriting. For mine
Uxbridge Worsted Corp.
Nov. 27 filed 45,000
tion to officers and directors of the company
Amalgamated.Development Co., Reno, Nev.
•
Jan. 10
Bachmann
Lead & Smelting Co., St. Louis
Sept. 6 filed 336,550 shares common stock (par $1).
Un¬
derwriting—No underwriting.
Offering—Stock will be
offered for subscription to common stockholders in
the ratio of one additional share for each two shares
held.
Unsubscribed shares will be offered for subscrip¬
SPECIALISTS IN
—
Underwriters and Distributors
United States Government Securities
Corporate and Municipal
☆
State and
of
Municipal Bonds
Securities
The
FIRST.BOSTON
C. J. DEVINE « CO.
.
CORPORATION
Boston
;
s
7
New York
Chicago and other cities
INC, 77
41 WALL ST., NEW YORK 5,
Pittsburgh
Chicago
1:7-
^ i
7
•
N. Y.
fioston ■* Philadelphia *
CftWnnflfl
^ Sn LoyU
•
Kidder, Peabody ^ Go.
77 7 : -j/
"
■'i. Founded 1865
MetnbwstfiheNwYorkand Boston Stoth Exchanges
HAnover 2-2727
JPittiburgh
^
San ItoiwIsm
GevelancI
aNew Yoic
^
. •
-Bosfbtf
TPhxladelphia
Chicago
Volume 165 -'Number 4560
THE COMMERCIAL' & FINANCIAL' CHRONICLE
Bowman Gum, Iric.^ Philadelphia
dividends.
Sept. 27 filed 268,875 shares ($1 par) common. Under¬
writer—Van Alstyne, Noel & Co., New York. Price—By
NEW ISSUE CALENDAR
Proceeds—Stock
amendment.
is
being
holders who will receive proceeds.
v
(Showing probablm date of offering)
m
sold
by share¬
by
preferred, together with other funds, will be used
the bank loan. Indefinitely postponed,
r*jV.
June
Braunstfiit (Harry), Inc., Wilmington, Del.
Preferred
Pref. and Common
Sept. 25 filed 12,500 shares ($25 par) 4%% cumulative
convertible preferred stock and 50,000 shares (200 par)
Bell & Gosset Co.
Common
Cristina Mines, Inc.
Eastern Cooperative Wholesale Inc
Common
C. K. Pistell & Co., Inc.,
$25 a share for preferred and $11
a
share for common. Proceeds—7,000 preferred shares
are
being sold by company, the remaining 5,500 pre¬
ferred shares and all of the common are Keing sold b>
present stockholders. Net proceeds to the company, es¬
Commfon
timated
Debentures
January 20, 1947
New York. Price
January 21, 1947
N. Y. State Electric & Gas
Corp.
Noon (EST)
I Hy-Grade Supply Co Preferred and Common
Bonds
Inc
Common
Common
January 23, 1947
Alabama Great Southern RR.
!
Noon
South
West
Corp
Common
Colonial Sand & Stone Co.
Firestone Tire & Rubber Co
Common
Debentures
Helene Curtis Industries Inc.___Pref and Common
January 28, 1947
General Phoenix Corp.
Debentures
January 29, 1947
\
Equip. Trust Ctfs.
February 4, 1947
Standard
& Co.
Inc., New York
tion to stockholders at $10 per
share, company on Sept.
t20 decided to withhold action at this
time.
Book-of-the-month Club, Inc., New York
filed
300,000
shares
($1.25
(Underwriter—Eastman, Dillon
par)
,
and
other
raw
Electric
and
Rejected—Standard
materials
and
&
Electric
Mines, Ltd., of Toronto,
writer—No
book
underwriters.
Offering—To
Under¬
the
public at
$1 a share in Canadian funds. Proceeds—For a variety
of purposes in connection with
exploration, sinking of
shafts, diamond drilling and working capital.
Central & South West Corp.
(1/27)
Aug. 30 Central & Southwest Utilities Co. (name changed
by post effective amendment to Central & South West
Corp.) filed an indefinite number of common shares (par
$5). Sealed bids will be received for the purchase of a
sufficient number of such shares as^same will be con¬
futed upon consummation of a proposed merger into
the issuer of American Public Service
Co., to provide
funds for retiring the preference shares of the issuer
and
American
shares
of
Public
the
Service
Co., not exchanged for
corporation.
Underwriters by
merged
amendment. Possible bidders: Glore, Forgan & Co.; Leh¬
man
Brothers-Lazard Freres & Co. (jointly); Smith,
Barney & Co.-Harriman, Ripley & Co. (jointly); Blyth
& Co., Inc., Stone & Webster Securities
Corp. and First
Boston Corp. (jointly)
Price by amendment. Bids to be
inventories.
Aug. 21
filed
90,000 shares
(no par)
common.
Under¬
writer—None.
be
offered
rate of
one
shares will
ment.
Offering—Common shares initially will
subscription to common stockholders at
share for each 7% shares held.
Unsubscribed
for
be
sold
to
Price by amend¬
underwriters.
Proceeds—Working capital, etc. Offering indefin¬
•
Clad
■writers^-Paul H. Davis
liquidate
Co.
and
Stroud
&
Co., Inc.
non-detachable
stock
purchase warrants for purchase of 30,000 shares of cornanon stock of the total
common, 375,000 shares will be
•offered for sale for cash. 30,000 shares are reserved for
Issuance upon exercise of warrants attached to
preferred
«nd 95,000 shares are reserved for issuance
upon exer¬
cise of outstanding warrants. Price—By amendment.
Proceeds—Net proceeds, together with other funds, will
Jbe used to pay the company's 2%
subordinated note in
the principal amount of $5,268,750 and accrued interest.
(Victor
V.)
Co.,
Philadelphia
$125,000
working capital.
Colonial
bank
loan
and
provide
additional
"
I
Airlines, Inc., New York
Oct. 25 filed 150,000 shares ($1
par)
capital stock. Under¬
writer—Auchincloss, Parker & Redpath, Washington,
D. C. and Hornblower and Weeks, New York. Price
by
amendment. Proceeds—Net proceeds will be used to pay
off a $550,000 loan to the Continental Bank & Trust Co.
of New York; purchase equipment and
development ex¬
penses
of Bermuda route. The balance will be used to in¬
crease
working capital.
150,000 shares and Generoso Pope,
President of company, who is selling the remaining 150,000 shares will receive proceeds from these shares. The
company will use its proceeds for payment of mortgage
open
account
indebtedness
additional equipment.
working capital.
»
Hemphill, Noyes C&, Co.
Members New York Stock Exchange
PHILADELPHIA
ALBANY
PITTSBURGH
CHICAGO
TRENTON
Car-na-var
INDIANAPOLIS
WASHINGTON
Any
and
balance
for
will
purchase
be added
of
to
Colorado Milling & Elevator Co., Denver, Colo.
Aug. 20 filed 70,000 shares ($50 par) cumulative con¬
vertible preferred stock.
Underwriter—Union Securi¬
ties Corp., New York.
Price by amendment. Proceeds
—Prior to the proposed issue of preferred stock, the
company
Corp.
(letter of notification) 132,500 shares ($1 par)
common and 35,000
warrants for purchase of common
one year after present public offering.
Price—$2 a com*'
mon
share, one cent a warrant.
Underwriter—L. IX
Sherman & Co., New York.
For working capital.
Industries Co.,
Inc.
Aug. 2 filed 150,000 shares ($1 par) common. Under*
writers—Aronson, Hall & Co. Price $8.25 per shsffO.
Proceeds—To repay demand loans and for general funds.
(Originally company filed for 80,000 preferred shares
par $25 and 350,000 common shares.)
Crawford Clothes,
Inc., L. I. City, N. Y.
shares ($5 par) common stcufc.
Underwriters—First Boston Corp., New York.
Price by
amendment.
Proceeds—Go to Joseph Levy, President,
filed
9
selling
300,000
date indefinite.
Offering
stockholders.
Cristina
Mines,
Inc., New York
(1/20-23)
Dec. 9
(letter of notification) 270,000 shares of common,
stock (par $1). Underwriter—Newkirk & Banks, inc.
Price—$1 per share. Proceeds—Property improvements,
exploration, purchase of machinery, working capital, etc.
Cyprus Mines, Ltd., Montreal, Canada
May 31 filed 500,000 shares of common stock (par $1%
Underwriters—Sabiston-Hughes, Ltd., Toronto.
Offlar*
ing—Shares will be offered to the public at 75 cents %
share.
Proceeds—Net proceeds, estimated at $300,000,,
will be used for mining operations.
Railway & Terminal Co.
(Texas)
27 filed
40,000 shares ($25 par) 5% participating
preferred stock.
Underwriters—Names to be supplied
by amendment.
Probable Underwriters—Kidder, Pea»*
body & Co., Merrill Lynch, Pierce, Fenner & BeaiteJ
Rauscher, Pierce & Co. Price by amendment. Proceeds
—Proceeds will be applied to the redemption of 3,843
shares of 7% preferred stock and for purchase of new
equipment and for construction as part of its modern¬
Danly
Machine Specialties,
Inc., r£Jcero,
Shillinglaw, Bolger & Co., Chicago. Price by amend¬
Proceeds—Company will use proceeds, together
ment.
a
$1,000,000 bank loan, to purchase machinery,,
buildings and to retire bank indebtedness. Offering date
with
indefinite.
•
Dealers
Jan.
8
share
Credit
Pittsburgh, Pa.
Corp.,
and $45,505
of promissory notes, 5% cumulative
Detroit Typesetting
For working capital.
Co., Detroit, Mich.
Sept. 25 filed 70,920 shares
writer
a
share. Proceeds
—
•
Jan.
10
common
$10
For working
Doyle
a
(John T.)
(letter
of
and 2,000
accrued
UndeSr$5;5»
—
six share¬
proceeds.
capital.
Co., Inc., New Bedford, Mass.
notification)
1,000
shares
shares ($100 par) preferred.
(no par)
Prices—
share. No
For production of commercial bodies.
common
underwriting.
common.
Detroit. Price
Stock is being sold by
holders who will receive
Boston.
($1 par)
C. G. McDonald & Co.,
—
50 cents a
promissory notes will be offered
No underwriting.
at face.
be offered at
Price—Common will
less and the
or
(no par)
101,300 shares
(letter of notification)
share and $100 a preferred
plans to call its $3 cumulative convertible pre¬
ferred stock for redemption at $55 a share plus
III.
26 filed 62,000 shares ($25 par) 5% cumulative
convertible preferred stock and 71,950 shares (par $2}
common stock 40,000 by company and 31,950 by certain
stockholders. Underwriters—Paul H. Davis & Co., ami
July
ceeds from the sale of
notes,
Municipal Securities
Wis.
4
interest.
Industrial, Public Utility, Railroad
YORK
Continental
Nov.
common
Colonial Sand & Stone Co., Inc., N. Y. (1/27-31)
UNDERWRITERS—DISTRIBUTORS—DEALERS
Madison,
Telephone Co.,
share, plus divs., all unexchanged old shares.
(1/18)
(letter of notification) $150,000 5% lO-y0ar de¬
bentures. Underwriting none. Price, par proceeds, to
August 15 filed 300,000 shares ($1 par) common stock.
Underwriters—Emanuel, Deetjen & Co., New York. Price
by amendment. Proceeds—Company will receive pro¬
NEW
Commonwealth
Sept. 23 filed 16,071 shares ($100 par) $4 cumulative
preferred. Underwriters — Paine, Webber, Jackson Gc
Curtis and Stone & Webster Securities Corp. OfferingShares will be offered for exchange for $5 cumulative
preferred, on a share for share basis, plus cash adjust¬
ment. Shares not exchanged will be sold to underwrite!*.
Price by amendment. Proceeds—To redeem at $110 B
ization and expansion program.
Offering date indefinite.
and
principal stockholders who waived their rights to sub-;
The remaining
90,414% shares and 58,850%
shares not subscribed to by common stockholders will
be offered to the public through underwriters. Price—$5
a share. Proceeds—Approximately $50,000 for payment
of Federal taxes; $250,000 for payment of Lincoln-RFC
loan; $50,000 as a loan to Palmer Brothers Engines, Ine,
a
subsidiary; balance for purchase of machinery and
equipment and working capital.
scribe.
Dallas
Jan. 13
have
The offering to common stockholders excluded the two
Nov.
Central Soya Co., Inc., Fort Wayne, Ind.
Boston Store of Chicago, Inc.
Sept. 10 filed 30,000 shares ($50 par) 5% cumulative
preferred and 500,000 shares ($1 par) common. Under&
filed
150,000 shares ($4 par) 30c cumulative
preferred stock, convertible into common
initially of ll/z shares of common for
each share of preferred.
Underwriter—Floyd D.|Cerf
Co., Inc., Chicago. Offerings-Company offered 59,585%
shares for subscription to present common stockholders
of record Aug. 6 at $4.50 a share in the ratio of one share
of preferred for each share of common held.
Rights
expired Aug. 20. Stockholders subscribed for 735 shares.
ceived Jan. 27.
itely postponed.
will
26
Aug.
Offer¬
Offering date indefinite.
Offering—Preferred
.v
stock in the ratio
Co., parent,
Gas
Invited—Bids for the purchase of the stock will be re¬
capital stock.
& Co., New York.
ing—Of the total, the company is selling 100,000 shares
«nd six stockholders,
including Harry Scherman, Presi¬
dent, and Meredith Wood, Vice-President, are selling
the remaining 200,000 shares.
Price by amendment.
^Proceeds—Company will use its net proceeds for work¬
ing capital to be used for expansion of inventories of
paper
Gas
of California.
Co. rejected
June 25 two bids for the purchase of the stock as un¬
satisfactory. Blyth & Co., Inc., and First Boston Corp.
bid of $28.33 a share, and Harriman
Ripley & Co. bid
of $24,031 a share.
Stock will again be put up for sale
when market conditions improve.
Bids
Preferred
Aug. 30 filed 119,706 shares (no par) common and sub¬
scription warrants relating to 30,000 shares thereof.
(Underwriting — None. Proceeds—For reimbursement
of
company's treasury for funds
expended
in
re¬
demption of 3,907 shares of 7%
cumulative
pre¬
ferred on April 1, and for funds
deposited in trust for
redemption on Oct. 1 of remaining preferred shares. Al¬
though it was proposed to offer the stock for subscrip¬
28
Co. and Mellon
dividend.
In¬
&
June 24 filed 400,000 shares of common stock.
and Common
N. Y. State Electric & Gas Corp.
Noon (EST) —*—
(Sidney)
.Vr
•/».
.
convertible
Continental-United
February 1, 1947
Oct.
Ripley
Carscor Porcupine Gold
Ontario
Helicopter Aircraft Service Inc._Pref
Blumenthal
Harriman
May 24 filed 312,000 shares of common stock (no par).
Stock will be sold through competitive bidding.
Under¬
writers—Names by amendment.
Probable bidders In¬
clude Blyth & Co., Inc.; The First Boston Corp.; Harri¬
man Ripley
& Co.
Offering—Stock is being sold by
Seaboard Air Line Ry.
I Noon (EST)
dividend.
California Oregon Power Co.
Equip. Trust Ctfs.
Equip. Trust Ctfs.
January 27, 1947
>
Union Gas Co.
Equip. Trust Ctfs.
(EST)
&
(N. Y.)
Securities Corp. bid 100.779 for a 4.40%
& Texas Pacific
Pennsylvania RR.
Central
Brooklyn
May 3 filed 70,000 shares of cumulative preferred stock
($100 par). Underwriters-^-To be filed by amendment.
Bids Rejected—Company July 23 rejected two bids re¬
ceived for the stock.
Blyth & Co., Inc., and F. S. Moseley & Co. and associates submitted a bid of 100.06 for a
definitely postponed.
(EST)
Cincinnati, New Orleans
3 p.m.
Equip. Trust Ctfs.
at
possible
4.30%
3 p.m. (EST)
Chesapeake & Ohio Ry.
—
—
$147,500, will be used to prepay to the ex¬
outstanding $149,300 mortgage liabilities.
Offering date indefinite.
tent
|
stock. Underwriter
common
(Victor V.) Co.
Old Town Ribbon & Carbon
Co.,
Pantasote Co.
.ts:
Columbia Aircraft Products Inc.
January 18, 1947
Clad
SO
repay
January 17, 1947
Birmingham Electric Co.
Leader Enterprises Inc.
Funds for the redemption will be
supplied
Proceeds from the sale of
short term bank loan.
a
(Continued
on
page
310)
(Continued from page
•
,
•
309)
Mining & Milling Corp., Reno, Nev.
Ducor
Jan. 10 (letter of
*
notification) 80,000 shares of common.
Price—$1 a share. No underwriting. For purchase of
milling machinery and other expenses.
•£«
'/Duraslte Corp., Clearwater, Fla.
(letter of notification) 99,000 shares of common
warrants covering 50,000 shares of com¬
Oct. 11
and purchase
Offering—Price $3 a common share and five cents
mon.
Underwriter—Amos Treat & Co., New York.
warrant.
a
machinery, plant renovation and working capital.
For
Offering date indefinite.
•
basis plus a cash adjustment. Proceeds—Approximately
$1,060,950 for redemption of class A preferred; balance
for expansion, working capital, etc. Dividend rate and
price by amendment. Indefinitely postponed.
Fresh
Dry Foods,
Inc.,
Columbia, S. C.
Aug. 30 filed 450,000 shares <(100 par) common. Under¬
writer—Newkirk & Banks, Inc. Offering—Of the total
company is selling 350,000 shares and two stockholders,
Roland E. Fulmer and Louis H. Newkirk, Jr., are selling
the remaining 100,000 shares. Price—$6 a share. Proceeds
—For purchase of sweet potatoes, plant expansion, addi¬
tional storage facilities, research .and development work
and working capital.
Offering date indefinite.
Cooperative Wholesale, Inc., New York
Eastern
(1/20).;
Frontier Power Co.,
,
Jan. 13 (letter of notification) 30,000 shares of common
stock (par $5). Price par. Underwriting none. Proceeds
working capital.
Edelbrew Brewery, Inc., Brooklyn,
N. Y.
<$100 par) 5% non-cumulative
preferred. Underwriters—None. Offering—To be offered
at par to customers, officers and employees of the com¬
pany. Proceeds — For corporated purposes including
modernization and improvement of the manufacturing
plant and machinery and equipment.
Dec. 31 filed 5,000 shares
■
%'i
:
Empire Millwork Corp., New York
Aug. 28 filed 50,000 shares of $1.25 cumulative converti¬
ble preferred stock, (par $25) and 150,000 shares of
common
stock
(par $1). Underwriters—Van Alstyne,
Noel & Co. Proceeds—Corporation will receive the pro¬
ceeds from the issuance of 50,000 shares of the common
stock which will be used to increase productive capacity,
add new lines of products and expand the business. The
remaining 100,000 shares of common stock and the preferred shares will be sold by present stockholders. Of¬
fering temporarily postponed.
25 filed
Oct.
Trinidad, Colo.
shares
119,431
($5 par) common. Under¬
writer—Sills, Minton & co. Price by amendment. Pro¬
ceeds—Shares are being sold by three stockholders, in¬
cluding J. G. White & Co., Inc., New York, which is sell¬
ing all of its holdings of such stock. Following the sale
of its holdings J. G. White will no longer be parent of
Frontier. Company will receive none of the proceeds.
General Phoenix Corp., New
York (1/28)
27 filed
Dec.
$2,000,000 15-year 4% convertible subor¬
dinated debentures, due 1962. Underwriter—Paine, Web¬
ber, Jackson & Curtis, Boston. Price by amendment.
Proceeds—Company will use part of the proceeds to pur¬
chase 25,000 additional shares ($5 par) capital stock, at
$10 each, of the Stuyvesant Insurance Co., a subsidiary.
The balance will be added to general funds.
'./•• .7
r.'V •'
7
Glencair
Mining Co.' Ltd., Toronto, Can.
Oct. 2 filed 300,000 shares ($1 par) stock.
Mark Daniels & Co., Toronto. Price—40
Funds).
(Canadian
Oct. 21
Boise, Ida.
(letter of notification) 3,000 shares of 4%% pre¬
($100 par). Price—$100 a share. Underwriter-
ferred
Richard Meade Dunlevy
Childs. Boise. Idaho
to retire debentures and for
Proceeds
expansion purposes.
York
Aug. 28 filed 355,000 shares ($1 par) common, of which
55,000 shares are reserved for issuance upon the exer¬
cise of stock purchase warrants.
Underwriter — Van
Alstyne, Noel & Co.
Offering—The 300,000 shares are
issued and outstanding and being sold for the account
Company has also issued 55,000
stock purchase warrants to the selling stockholders at
10 cents a share entitling them to purchase up to Aug. 1,
1949, common stock of the company at $11 a share. Price
by amendment. Offering temporarily postponed.
of certain stockholders.
Co., York, Pa.
Farquhar (A. B.)
Sept. 26 filed 30,000 shares ($25 par) cumulative con; vertible preferred; 45,000 shares ($5 par) common; and
an unspecified numbei^of cfommon shares to permit con¬
version of the preferred. Underwriter—Stroud & Co.,
Inc., Philadelphia, Price—By amendment. Proceeds —
Proceeds will be used to redeem $355,350 4% % sinking
fund mortgage bonds, due Aug.
1, 1957, to pay off
certain contracts and chattel mortgages of $72,000 and
$800,000 to reduce principal on
outstanding bank loans.
®
Films Inc., flew York
;
June 25, filed 100,000 shares ($5 par) class A stock and
300,000 shares (10 cent par) common stock, of which
;5200,000 shares reserved for conversion of class A. Each
share
of
shares of
class
A
stock
common
initially convertible into 2
Underwriters—Herrick, Wad-
is
stock.
dell & Co., Inc., New York.
Offering—To be offered
publicly at $8.10 a unit consisting of one share of class A
stock and one share of common stock.
4
1
•
Proceeds—$201,-
000 for retirement of 2,010 shares
($100 par) preferred
share; remaining proceeds, together with
other funds, will be used for production of educational
stock at $100 a
films.
i
•
•
Financial
Industrial
Fund,
Inc.,
Denver,
Colo.
Jan. 13 filed 500,000 Fund shares.
Service
ment
value.
Corp., Denver.
Proceeds—For
Underwriter—Invest¬
Price—Based on market
investment.
Business—Investment
business.
.•
?
.
Industrial
Fund,
Inc.,
Denver,
Colo.
Systematic (periodic payment) invest¬
ment certificates providing for total payments of $4,800,000 and 500 cumulative (full-paid) investment cer¬
tificates providing for total payments of $500,000. Under¬
writer—Investment
Service
Corp.,
Denver.
Price—
Based
.
Industries
Inc.,
on
value.
market
Proceeds—For
investment.
Business—Investment business.
July 31 filed 50,000 shares of $1.25 cumulative converti¬
ble preferred stock series A ($20 par) and 150,000 share*
(10c par) common, all issued and outstanding and being
sold by eight selling stockholders.
Underwriters—Van
Alstyne Noel & CO; Price by amendment. Proceeds—
To selling stockholders. Offering temporarily postponed.
•
Gordon
14 filed
Jan.
Foods,
Inc., Atlanta,
Jan
7
filed
$25,000,000
25-year
debentures
due
1972.
rUnderwriters—Harriman Ripley & Co. Inc.; New York,
and Otis and Co. Inc., Cleveland. Price—By amendment.
Proceeds—For redemption of 250,000 shares out of 414,000
at
outstanding shares of 4Vz% preferred (cumulative)
a share plus accrued dividends.
$105
Food Fair Stores,
Inc.,
Philadelphia
Aug. 5 filed 60,000 shares ($15 par) cumulative preferred
stock.
Underwriters—Eastman, Dillon & Co. Price by
amendment.
Proceeds—To be used to redeem 15-year
3%% sinking fund debentures, due 1959; and $2.50 cum¬
ulative preferred at $53 a share.
Balance will be added
to working capital.
Temporarily postponed.
Foreman Fabrics
Corp., New York
July 29 filed 110,000 shares ($1 par) common stock, all
outstanding.
Underwriters—Cohu & Torrey.
Price by
100,000 shares ($1 par) common stocks
Underwriters—Van Alstyne, Noel & Co., New York, and
June
filed
27
Offering—
Johnston, Lemon & Co., Washington, D. C.
To be offered to the public at $8 a share.
Proceeds—*
Company is selling 60,000 shares and stockholders are
selling 40,000 shares.
The company will use its proceeds
to pay the costs of opening additional stores and to ex-?
pand merchandise in its existing stores.
porarily postponed.
Health Institute, Inc.,
Offering tem¬
Hot Springs, N. Mex.
butter sandwiches and other nut products.
•
Greenville
(Tex.)
13
Jan.
common.
Industrial Development Fund,
(letter of notification) 2,000 shares ($50 par)
Price—$50 a share. To be sold through Dudley
Ames, Greenville, licensed dealer under Texas Securi¬
ties Act. The company is a civic non-profit organization.
Proceeds will be used to acquire sites and buildings to
be leased to industries locating in Greenville.
40,000 shares of the common will be
offered publicly. Of
9,998 shares will be issued te
Charles J. Van Ruska in payment for promotional serv¬
ices and a 99-year lease on real estate assigned to the
company, and one share each will be issued to Tom A.
Corbett and Emil M. Van Sant for services. All three
men are officers of the company. Price—$10.15 a pre¬
the remaining
common,
ferred share and $10
a
share. Proceeds—Pro¬
common
ceeds will be used to build
and equip hotel
and health
mineral water supply.
—Operation of health resort.
Helene Curtis Industries,
Inc.
Business
(1/27)
cumulative
shares ($1
par) common, reserved for conversion of preferred.
Underwriter—Simons, Linburn & Co. Offering—Com¬
pany will offer 40,000 shares of preferred to employees
at $9.50 a share and 20,000 shares to the public at $10 a
share.
Proceeds—To be added to general corporate
60,000 shares ($5 par) 50-cent
convertible preferred, Series A, and 120,000
Dec. 5 filed
funds.
•
Helicopter Aircraft Service,
(2/1)
13
Jan.
and
(letter
1,000 preferred shares
shares. Price, preferred $100 per
and common $1 per share. No underwriting. Pur*
of Helicopters and other equipment.
10JI00
share
of notification)
Inc., Syracuse, N.Y*
common
Hollywood Colorfilm Corp.,
Burbank, Calif.
notification) 119,500 shares of ($1 par)
capital. Price, $3 a share. No underwriting contract, how¬
ever, 55,000 shares to be issued to or through H. R. O'Nett
of Buckley Bros., Los Angeles, will be sold by one or
more of the following firms: Buckley Bros.; Durand &
Co., Tucson, Ariz.; J. Earle May & Co., Palo Alto, Calif.
Oct. 16 (letter of
Hy-Grade Supply Co., Oklahoma
(letter of notification)
12,000 shares
($1 par)
Underwriters—Kalman & Co., Inc.,
St. Paul.
Price—$25 a share.
Proceeds — For improvement and
modernization program. Offering indefinitely postponed.
Illinois Power Co., Decatur,
III.
200,000 shares ($50 par) cumulative pre¬
ferred stock and 966,870 shares (no par) common stock.
Underwriters—By competitive bidding. Probable bid¬
ders include Blyth & Co., Inc.; The First Boston Corp.;
W. E. Hutton & Co. Proceeds—Net proceeds from the
sale of preferred will be used to reimburse the com¬
pany's treasury for construction expenditures. Net pro¬
ceeds from the sale of common will be applied for re?
demption of 5% cumulative convertible preferred stock
June 17, filed
to the redemption
to treasury funds.
Company has asked the SEC to defer action on its fi¬
nancing program because of present market conditions.
not
date.
converted into common prior
The balance will be added
Offering date indefinite.
Inter-Mountain Telephone Co.,
Bristol, Tenn.
shares ($10 par) common. Under¬
writers—Headed by Alex. Brown & Sons, Baltimore, Md.
Offering—The shares will be offered for subscription ta
common stockholders at $10 a share in the ratio of one
new share for each share held. It is expected that war¬
Dec. 19 filed 47,500
stock
poned.
New York
Aug. 28 filed 140,000 shares of common stock (par $1).
Underwriter—Otis & Co. Offering—Price $10 per share.
Proceeds—Selling stockholders will receive proceeds.
Inc., New York
July 29 filed 18,500 shares at $4.25 cumulative preferred
($100 par), with non-detachable common stock
purchase warrants entitling registered holders of shares
of the $4.25 preferred to purchase at any time 64,750
shares of Common stock at $16 a share at the ratio of 3%
common shares for each preferred share held; and 120,000 shares of $1 par common stock.
Underwriters—H.
M, Byllesby and Co., Inc.
Offering—Underwriters to
purchase from the company 18,500 shares of preferred
and 20,000 shares of common; and from Fred P. Murphy
and J. C. Graham, Jr., 100,000 shares of Issued and out¬
standing common. Prices, preferred $100 a share; com¬
mon
$14 a share. Proceeds—To retire $6 cumulative
preferred, pay notes, discharge a loan. Indefinitely post¬
City (1/21)
notification) 54,350 shares of cum. conv*
preferred and 50,000 common stock purchase warrants.
Price—$5.50 a preferred share and 2 cents a warrant;
Underwriter—Amos Treat & Co., New York.
To exer-r
cise options for purchase of five variety stores, to retire
notes and for working capital.
Dec. 3 (leter of
International Dress Co., Inc.,
Griggs, Cooper & Co., St. Paul, Minn.
Grolier Society,
1
50,000 shares ($10 par) 5%% cumulative
prior preferred and 50,000 shares ($10 par) common.
Underwriting—None. Offering—All of the preferred and
Dec. 16, filed
150,000 shares
Cincinnati, O., from its co-partners, John J. Driscoll and
Clarence H. Wolfe, and approximately $400,000 to fi¬
nance an expansion program of its new Louisville, Ky.,
plant. Business—Manufacture of potato chips, peanut
common.
(1/27)
Offering date indefinite.
Inc., Los Angeles
Hartfield Stores,
Ga.
($1 par) common. Under¬
writers—Johnston, Lemon & Co., Washington, D. C.,
and Allen & Co., New York, are principal underwriters.
Offering—Company will offer 125,000 shares to the pub¬
lic at $6 a share and the remaining 25,000 shares will be
sold to the principal underwriters for investment at $5
a share. Proceeds—Company will apply $350,000 of the
net proceeds to purchase the Driscoll Food Products,
Sept. 3
Firestone Tire & Rubber Co.
Co., Chicago
Milwaukee, Wis.
.
Jan. 13 filed 4,000
for working capital.
ance
chase
Glen
Inc.
iit-y
•
Financial
Instrument
Under?
amend¬
redeem
its outstanding 6% cumulative preferred stock at an
estimated cost of $213,258, exclusive of accrued divi¬
dends.
It also will use approximately $402,000 toward
the purchase of a manufacturing plant in Chicago; bal¬
Underwriter—
cents a share
Proceeds—For mine development.
Glensder Textile Corp., Nqw
fW-. '*
Falk Mercantile Co., Ltd.,
Hammond
1947
Aug, 8 filed 80,000 shares ($1 par) common.
writer: Paul H. Davies & Co., Chicago. Price by
ment.
Proceeds—Net proceeds will be used to
facilities and to acquire a
*
^ " ' "v-
Thursday, January 16,
THE COMMERCIAL & FINANCIAL CHRONICLE
310
stockholders Jan. 20. Unsubito underwriters. Proceeds—
off $250,000 bank loan and
property additions and improvements.
rants
will
be
mailed to
scribed shares will be sold
Proceeds will be used to pay
for
.
..
.
•
,
...
Kingfisher Water Co., Chicago
Jan.
7
(letter
of
notification)
$85,000 first mortgage
Under¬
Mo. For
bonds.
Price—$1,000 and $500 per unit.
writer—Metropolitan St. Louis Co., St. Louis,
4%
payment of $35,000 note and for property
improvements.
additions and
amendment.
•
'Vilfe
■:
,
>
'
Foster & Kleiser Co., San Francisco
July 29 filed 100,000 shares of $1.25 cumulative
con¬
vertible preferred stock (par $25).
Underwriter—Blyth
& Co.. Inc. Offering—Underwriters arp
making exchange
offer to holders of Class A preferred on share for share
Gulf Atlantic Transports Co.,
Jacksonville, Fla.
17 filed 270,000 shares of common stock (par $1).
Underwriters—Blair & Co.
Offering—Stock is being of¬
Jan.
fered to present shareholders at
of approximately 200,000 shares
$3 per share. Holders
have agreed to waive
their preemptive rights. Offering date indefinite.
Kiwago Gold Mines Ltd., Toronto,
Canada
par) common. Under¬
writer—Jack Kahn, New York.
Price—70 cents a share,
the underwriting discount will amount ,to 21 cents a
share.
Proceeds—For exploration arid development of
Dec. 3 filed 1,000,000 shares (no
mining nronerty and for
administrative expenses.
Volume
165
Leader
Number 4560
THE COMMERCIAL & FINANCIAL
CHRONICLE
Enterprises, Inc., New York
(1/17-23)
Sept. 26 (letter of notification) 150,000 shares of
(100
par) common and 57,000 shares ($5 par) 6% cumulative
convertible preferred, Series A. Price—10
cents a commonshare and $5 a preferred
share. Underwriter—
Gearhart & Co., Inc., New York.
Proceeds—To replace
working capital used to promote new publication called
Fashion
Trades
and
to
provide
additional
capital. Offering date indefinite.
working
^National Alumlnate Corp., Chicago
Mada Yellowknlfe Gold
Mines, Ltd., Toronto
June 7 filed 250,000 shares of
capital stock (par 40c>
jUndewriters—Mark Daniels & Co. Offering—Stock will
be offered
publicly in the U. S. at 40c a share (Cana¬
dian money).
Proceeds—Proceeds, estimated at $75,000,
will be used in
operation of the company.
Maine Public Service
Co., Preque Isle, Me.
25 filed
150,000 shares ($10 par) capital stock.
Underwriters—To be determined through
competitive
bidding.
Probable bidders include The First Boston
June
Corp.; Kidder, Peabody & Co., and Blyth &
Co., Inc.
(jointly); Harriman Ripley & Co; Coffin & Burr and
Merrill Lynch,
Pierce, Fenner & Beane. Proceeds—The
shares are being sold by Consolidated
Electric and Gas
Co., parent of Maine Public Service, in
compliance with
geographic integration provisions of the Public
Utility
Holding Company Act.
Manning, Maxwell
Nov.
27
filed
160,000
& Moore,
shares
Underwriter—Hornblower
by
amendment.
&
of
$12.50
Proceeds—Proceeds
with
par
common.
will
be
Price
used
to
the balance
going
Offering temporarily postponed.
into general funds.
Meyer-Blanke Co., St. Louis, Mo.
Nov.
•
29
(letter of notification)
1,200
(no
par)
Co.,
Jr.
University City, Mo. Price—
a
share. Underwriter—Smith-Moore & Co., St. Louis.
June 24 filed $3,500,000 of series A first
mortgage bonds,
due 1976; 14,000 shares ($100
par) cumulative preferred
stock and 120,000 shares
($10 par) common stocK. Un¬
derwriters—To be determined by competitive
bidding.
Probable bidders include Blyth &
Co., Inc.; Kidder, Peabody & Co.; The First Boston Corp.; Harris. Hall & Co.
(Inc.); Merrill Lynch, Pierce, Fenner & Beane, and Ira
Haupt & Co. Offering—New preferred will be offered
on a share for share
exchange basis to holders of its
/Outstanding 7% prior lien, $6 no-par prior lien, 6%
preferred and $6 (no par) preferred.
Of the common
stock being registered, company is
selling 40,000 shares,
Middle West is selling 57,226 shares and
Halsey, Stuart
& Co. Inc., New York, is selling
22,774 shares.
Proceeds
t—Michigan will use net proceeds from bonds to redeem
$3,500,000 3%% series A first mortgage bonds, due
1972,
mon
Net proceeds from sale of
and from shares of
new
tain
due
W.
1959.
York
Price
&
at
market.
Co., Inc.
being issued to the underwriter
obligations.
The
Bidders may include
Halsey, Stuart & Co. Inc.
only), Bear, Stearns & Co. (stock only), First
(bonds
Boston
Corp., White, Weld&Co.-Kidder, Peabody & Co.
(jointly).
Offering—Bonds and common stock are
being offered in
connection
with
a
compromise
recapitalization plan
June 24, 1946, which among
approved by the SEC, on
things provides for the elimination of all outvtanding debentures and preferred and common
stocks,
and for the issuance of
$22,500,000 of bonds and 2,300,000
other
new
shares.
common
bonds and the
Bids
for
the
stock which
common
purchase
of
by
the company Aug. 13 were withdrawn
Aug. 12.
alternate plan filed Nov. 25 with the SEC
provides
for the issue of 77,625 convertible
preferred shares (par
$100) and 1,246,011 common shares (par $8). Under the
proposed plan consolidated funded debt would be
tically unchanged from that provided in original
plan,
Association to issue $22,425,000 coll. trust bonds.
the
These bonds and preferred stock
to
an
may be sold, subject
exchange offer, to the holders of present deben¬
a par for par basis.
Present preferred would
on
receive for each share held 8 shares of
new common
with
com¬
preferred not issued in
ex¬
5 new common shares at
$9 per
present plan does not affect the status of
original plan, but determination as to which will be used
share.
The
will be left to the SEC and the court.
alternate plan
New
N.
are
York
Y.
Hearings
on
Electric &
Gas
Corp.,
Ithaca
(1/21-2/4)
$13,000,000 first mortgage bonds, due 1976,
150,000 shares of ($100 par) cumulative preferred.
Underwriters—To be determined by competitive
bidding.
Probable bidders include Blyth & Co. and
Smith, Barney
& Co. (jointly); First Boston Corp. and
Glore, Forgan &
Co..(jointly), and Halsey,.Stuart
Inc..(bond?, only).
Proceeds—Estimated proceeds of $28,000,000, together
with a $7,500,000 contribution from General Public Util¬
ities Corp., parent, will be used for
redemption of $13,000,000 of 3%% bonds, due 1964, and 120,000 shares ($100
par) 5-10% cumulative serial preferred and to finance
construction.
Bids Invited—Bids
for
the
purchase
change will be used to redeem $375,000 ZVz% serial de¬
bentures, due 1951, at 101.2 and interest. It also will
of the bonds will
redeem at 105 and accrued dividends all
unexchanged
shares of prior lien and preferred stocks.
Room
•
Northern Engraving & Mfg. Co., La
Crosse, Wis.
Aug. 29 filed 70,000 shares ($2 par) common stock.
for
and
the
be received
preferred
stock
up
up
to noon (EST) Jan. 21
noon
(EST)
Feb. 4
Miller Lodges, Inc.,
10
common
San Jose, Calif.
(letter of notification) 15,000 shares of class A
and 15,000 shares of class B common. Price
$10
—
a
share.
No
underwriting. For purchase of
struction of 54 unit hotel
and
for
land, con¬
equipment and other
purposes.
Monmouth Park Jockey Club,
Oceanport, N. J.
.Jan. 14 filed
voting trust certificates for 483,500 shares
of (Id par) common to be offered
on
exchange for com¬
mon.
Business—Operates
a
race
track.
Monmouth Park Jockey Club,
Oceanport, N. J.
Dec. 5 filed 16,000 shares
($50 par) 5% cumulative con¬
vertible preferred and 633,500 shares
Underwriter—Unsubscribed shares
to
a
(lc par)
common.
and additional shares
total of
315,000 will be purchased by the Mlonmouth
Corp., formed last May to finance construction of the
racing plant.
Offering—Company will offer present
common stockholders the
right to purchase 387,500 addi¬
tional
common shares at
$4 each in the ratio of 1 %
shares for each share held.
Price—$4 a share. Proceeds
—Part of the funds will be used to redeem
25,200 shares
of $50 par 4% non-cumulative convertible
preferred held
by Monmouth Corp.
A balance due on construction
work will be paid by distribution of
14,636 shares of the
new preferred to F. H. McGraw &
Co. and subcontrac¬
tors.
Business—Operation of race track.
Mountain States
June 6 filed
Power Co.
140,614 shares of
common
stock
(no par).
Underwriters—To be determined by
competitive bidding.
Probable bidders include Blyth &
&
Co.
and
Smith
Co., Inc.; Kuhn, Loeb
Barney &
Co.
(jointly); Harriman,
Ripley & Co.; The First Boston Corp.
Offering—Shares,
are
owned
by Standard Gas & Electric Co. and con¬
stitute .56.39% of the
company's outstanding common.
Sale Postponed—Standard Gas &
Electric Co. asked for
bids for the purchase of the stock on
•ale has been
temporarily postponed.
Murphy
(G. C.) Co., McKeesport, Pa.
June 13 filed 250,000 shares
of
.Underwriter—Smith, Barney
ment.
Proceeds—Redemption
ferred stock at $109
postponed.
Sept. 4, but the
a
common
stock
& Co.
Price by amend¬
of outstanding 4%% pre¬
share plus dividends. Indefinitely
Oro Yellowknife Gold Mines
Jan.
filed
7
2,000,000
shares
Ltd., Toronto, Can.
($1
par)
capital
stock.
Underwriter—Tellier & Co., New York. Price—60 cents
a
share. Proceeds—For expenses and exploration and
development.
Pacific Power &
Light Co., Portland, Ore.
July 10 filed 100,000 shares ($100 par) preferred stock.
Underwriters—By amendment. Probable bidders include
Blyth & Co., Inc., White, Weld & Co. and Smith, Barney &
Co. (jointly); The First Boston Corp., W. C. Langley & Co.;
Harriman Ripley & Co.
Offering—Company proposes to
issue the 100,000 shares of new preferred for the pur¬
pose of refinancing at a lower dividend rate the 67,009
outstanding preferred shares of Pacific and the 47,806
preferred shares of Northern Electric Co., in connection
with the proposed merger of Northwestern into Pacific.
In connection with the merger, the outstanding preferred
stocks of Pacific and Northwestern will be exchanged
share for share, with cash adjustments, for the new pre¬
ferred stock of Pacific, the surviving corporation. Offer¬
ing price—To be supplied by amendment.1
Blade Co.,
Inc., New York
June 28, 1946 filed 227,500 shares ($1 par) capital stock.
Underwriters — F. Eberstadt & Co., Inc.
Offering —
225,000 shares are outstanding and are being sold by 10
stockholders, and 2,500 shares are being sold by A. L.
Marlman to all salaried employees. Issue may be with¬
drawn.
T/i
Palmetto
Fibre
Corp., Washington,
August 16 filed 4,000,000 shares
stock.
Underwriting—Tellier
50 cents
a
&
D. C. >
(100 par) preference
Co., New York. Price
share. Proceeds—The company will use esti¬
mated net proceeds of $1,473,000 for purchase of a new
factory near Punta Gorda, Florida, at a cost of .about
$951,928. It will set aside $150,000 for research and de¬
velopment purposes and the balance will be used as
operating capital.
Pantasote Co.,
& Co.- Offering—All shares
issued and outstanding and
being sold for the account
of present holders.
Price—$16 a share.
Proceeds—To
selling stockholders. Offering temporarily delayed.
Indiana
Public
Aug. 28 filed maximum
of
Service
Co.
384,016 shares
of common
stock. Underwriters by amendment as shares will be
offered under competitive bidding. Probable bidders in¬
clude Blyth & Co.,
Inc.; The First Boston Corp.; Stone
& Webster Securities
Corp., and Harriman
Ripley &
Co., Inc. (jointly). Of the shares registered, 182,667 are
being sold by Midland Realization Co.; 54,426 by Mid¬
land Utilities Co., and
146,923 by Middle West Corp.
Dec.
20
Passaic, N. J.
(1/21-22) 1
filed
50,000 shares ($1 par) common.
Under¬
Alstyne, Noel & Co., New York. Priceamendment.
Proceeds—For construction of ware¬
writer—Van
By
house, purchase of equipment and for working capital.
Dec.
20
ferred
filed 26,000 shares
($100 par)
cumulative pre¬
and
410,000 shares ($3 par) common.
Under¬
writers—To be supplied by amendment.
Offering—The
new preferred will be offered in
exchange to holders of
the company's 7% cumulative
preferred and 6% cumu¬
lative preferred, on a share for share
basis.
Shares not
issued in exchange and all of the common shares
will
be sold to underwriters.
Of the total common, the com¬
is selling 110,000 shares and the remaining 300,000
shares are being sold by
Bear, Stearns & Co. Price—By
amendment.
Proceeds—The company will use its pro¬
ceeds to redeem old preferred stock.
pany
Nugent's National Stores, Inc., New York
21 filed 85,000 shares
($1 par) common stock.
Underwriters—Newburger & Hano, and Kobbe, Gearhart
& Co., Inc.
Price, $6.75 a share. Proceeds—Net pro¬
ceeds to the company from
62,000 shares, estimated at
$350,200, will be applied as follows: About $111,300 for
retirement of outstanding preferred
stock; $41,649 to
June
purchase 100% of the stock of two
affiliates, and bal¬
ance $197,000 for other
corporate purposes. The pro¬
ceeds from the other
3,000 shares -will go to selling
stockholders. Offering temporarily
postponed.
Dec. 23 filed 890,000 shares
($20 par) common.
writers—To be
determined
by
competitive
Probable
bidders
will
include
The
Peninsular Oil Corp., Ltd., Montreal, Canada
Sept. 3 filed 600,000 shares of common (par $1). Under¬
writer—Sabiston Hughes, Ltd., Toronto, Canada. Price—
60 cents a share.
Proceeds—Net proceeds will be used to
purchase drilling machinery
and other equipment*.
•
Pennsylvania Power & Light Co., Allentown, Pa.
Jan.
13
filed
1,050,072 shares (no par) common stock
Electric Bond & Share Co., parent.
Under¬
Offering—The shares will be offered for
subscription to Bond and Share common stockholders in
owned by
writer—None.
the ratio of .20 of
a
share of Power &
each share of Bond & Share
Northwestern Public Service Co.
Oklahoma Gas and Electric Co.
(par $1).
$4.75 a share.
Proceeds—Of the total
is selling 37,500 shares and stockholders are
selling 87,500 shares. The company will use its proceeds
for equipment and working capital. 1
at
Underwriter—Cruttenden
Under¬
bidding.
First Boston
Corp.;
White, Weld & Co.; Lehman Brothers and Blyth & Co.,
Inc. (jointly); Harriman,
Ripley & Co.; Kuhn, Loeb &
■
Offering—Price
are
Northern
,•
■
company
2601, 61 Broadway, New York City.
a
Jan.
i
Orange-Crush de Cuba, S. A.
July 22 filed 125,000 shares ($1 par) common and 40,000
warrants. Underwriter—Floyd D. Cerf Co., Inc., Chicago.
Pal
and
new
ment.
the
Oct 30 filed
(1/21)
filed
140,900 shares ($5 par) common. The
shares are being sold by three stockholders. Underwriter
—The First Boston Corp., New York. Price—By amend¬
scheduled by the SEC for Dec. 19.
State
19
the
to be received
were
An
tures
Old Town Ribbon & Carbon Co. Inc.
Sept.
Under¬
New England Gas and Electric
Association
July 11 filed $22,500,000 20-year collateral trust
sinking
fund Series A bonds, and a maximum of
1,568,980 com¬
mon shares
($5 par).
Underwriters—By amendment.
Offering—Of
balance will bo used for property additions.
debentures
in payment of cer¬
311]
tive bidding.
Proceeds—Oklahoma will use its net pro¬
ceeds to prepay part of its outstanding serial notes. The
Foundry Co., Avonmore, Pa.
rights to subscribe to
Michigan Gas & Elec. Co., Ashland, Wis.
at 106.75 and interest.
debentures
T"
-
Electric Co., parent and 140,000 shares will be sold by
the company.
Standard's shares comprise its' entire
holdings in Oklahoma Gas common, Price—By competi¬
(letter of notification) $7,600 15-year 5%
sinking
writer—Warren
are
&
prac¬
shares
common, 50% on behalf of George A. Meyer Finance
St. Louis; and 50% on behalf of
Robert L. Blanke,
and Marian Blanke, both of
$31
fund
of
Weeks, New York.
$1,000,000 in bank loans
repay
Inc.
Jan. 9
Roll
■
the total 750,000 shares will be sold by Standard Gas &
stockholders and the number of shares to be sold
by each
will be supplied by amendment.
National
.
Co., and Smith, Barney & Co., (jointly).
Sept. 27 filed aft unspecified number ($2.50
par) com¬
shares. Underwriters—First Boston
Corp., New York,
and Lee Higginson
Corp., Chicago. Price—By amend¬
ment. Proceeds—The stock is issued and
outstanding and
is being sold by shareholders. Names
of the selling
mon
•
'
"
common
Light
held.
common
for
Price—The
price will be $3.50 below the market price on a day to
be selected by Bond & Share.
Proceeds—Proceeds go to
the selling stockholder.
Peruvian
International
Airways, Lima, Peru
Dec. 4 filed 301,122 shares
($7 par) 50-cent convertible
preferred and 451,683 shares ($1 par) common, of which
301,122 shares will be reserved for conversion of pre¬
ferred. Underwriter—None stated. Offering—301,122 pre¬
ferred shares and 150,561 common shares will be offered
publicly in units of two shares of conyertible preferred
and one share of common at $15 a unit.
The company
also may offer the shares other than by unit at a price
of $7 a preferred share and $1 a common share. Proceeds
—To increase capital for expansion of proposed air
route connecting Peru and Montreal, Can.
Petroleum
Dec.
30
Heat &
Power Co.,
Stamford, Conn.
filed
912,464 shares ($2 par) common. Under¬
writers—None. Offering—Shares will be offered in ex¬
change for entire outstanding capital stock of Taylor Re¬
fining Co., consisting of 8,946 shares (no par) common
an underlying book value of $2,458,224 as of last
Sept. 30. At a meeting of stockholders, Dec. 23 company
authorized an increase in common stock from 1,000,000
with
to 2,000,000 shares and also authorized the issuance of the
present offering in exchange for the Taylor stock. Ap¬
proximately 70.9% of the common stock is held under
a voting trust agreement of Aug. 15, 1945, which it is
expected will be terminated upon the acquisition of the
Taylor stock.
•
(Continued from page 311),-..
>
,v
,
Reynolds Metals Co., Richmond,
£fei>t.
27 filed 100,000 shares ($20 par) cumulative con¬
vertible preferred. Underwriter—Van Alstyne, Noel &
Co, add G. L. Ohrstrom & Co., New York. Priee—$20 a
of loans and to replace
working capital expended in purchase of building from
share.
Proceeds—For payment
R^C and to complete construction of
a
building.
Butcher & Sherrerd, and
MacGregor, Inc. who will sell same to their
customers at market but at not exceeding $102 per share
Proceeds—Will be used for working capital.
right to
Stroud & Co., Inc.,
Glover &
ri:
shares (par $7.50) cumulative con¬
vertible prior preferred $2 dividend stock.
Underwriter
—G. Brashears & Co., Los Angeles.
Price by amend¬
ment.
Proceeds—23,481 shares
are
being issued by com¬
recent
cocktail
lounges in Long Beach, Riverside, Palm Springs and San
pany
and proceeds will be used in connection with
purchase
Chi
four
of
and
restaurants
Chi
Diego and for working capital.
Plastic
Molded
Proceeds from sale of preferred will be used to
Gold
Inc.,
Mines,
(letter of notification) 200,000 shares (250 par)
Price—25 cents a share. No underwriting. For
common.
•working funds.
Quebec Gold Rocks Exploration Ltd., Montreal
Nov.
filed
13
shares (500 par) capital stock.
Soden, Montreal, director of
Price—500 a share.
Proceeds—For explora¬
100,000
»Under writer—Robert
company.
tion
and
(Calif.)
Sky Park Airport, Inc.
licly at $1 a share, 16,000 shares will be transferred to
Alex. Wilson and Wayne Voigts for their interest in
Santa Cruz Flying Service, which is a flying field and
airport, and 6,000 shares would be issued in cancellation
of partnership indebtedness.
No underwriting.
For
operation of airport business.
Ky.
Co., Louisville,
Seymour Water
B.
development of mining property.
•
~
(letter of notification) 7,200 shares ($25 par) 5%
preferred.
Price—$26.50 a share.
Under¬
writer—Smart & Wagner and The Bankers Bond Co.,
both of Louisville.
Proceeds—To provide part of funds
to
purchase 2,587 shares of
Co., Seymour, Ind.
capital stock of Seymour
Water
Slick
Airways, Inc., San Antonio, Texas
shares ($10 par) common and options
Dec. 9 filed 500,000
purchase 175,813 shares of common.
Underwriting—
None.
Offering—The common shares are to be offered
to
of
The options for purchase of the 175,813 shares
are to be offered to original subscribers of
common
the company's
It also will issue options to em¬
stock.
ployees for purchase of 69,875 shares of common. Price—
$10 a share.
Proceeds—For purchase of equipment and
for working capital.
•
Pick Gold
Silver
Mining Co., San Francisco
($1 par).
&
Society
Development
Inc.,
Baltimore, Md.
Jan. 7 (letter of
notification) $20,000 of class A
and $30,000 of class B common. Price — $10
common
share.
a
Underwriting—The Research and Development Society,
c/o Clarence L. Harmon Sr., President. To defray cost
of plant establishment and to
Plunkett,
San
Jan. 8 (letter of notification)9,000 shares
mon
behalf
?on
market.
of
John
J.
($1 par) com¬
President.
Price at
Alstyne, Noel & Co., and
Daly,
Underwriters—Van
tCohu &
Francisco.
development
For
of
Torrey, New York.
y
Reiter-Foster
'Jan. 8
Oil
Corp.,
(letter of notification)
New
cumulative con¬
shares of $1.12%
preferred stock, series A (par $20).
Under¬
writers—Van Alstyne, Noel & Co.
Price by amendment.
Proceeds—Net proceeds will be applied for the redemp¬
tion of outstanding series A convertible preferred stock
which are not converted into common stock.
Such pro¬
ceeds also will be used for additional manufacturing
vertible
facilities in the amount of $600,000; for
additional inven¬
tory amounting to $400,000, and for additional working
capital. Offering temporarily postponed.
Soss
Manufacturing Co., Detroit, Mich.
105,800 shares
(50c
par)
'
Common.
Price—85
cents
Federal Corp., New York.
Offering
Sept 3 filed 40,000 shares ($25 par) 5% cumulative con¬
vertible preferred. Underwriter—Ames, Emerich & Co.,
Inc., Chicago. Offering—To be offered to common stock¬
holders for subscription at $25 a share in the ratio of
one preferred share for each five shares of common held
unsubscribed shares will be sold to underwriters at same
Price — Public offering price of unsubscribed
amendment. Proceeds—For expansion of plant
facilities and for additional working capital. Offering
Bond. Co.,
a
Southwestern
and Almstedt Bros., both of Louisville,
and
Cruttenden & Co., Chicago.
Of the total of 60,000 shares,
the company is selling 40,000 and seven stockholders are
disposing of the remaining 20,000.
Proceeds—Company
will use its proceeds, together with $500,000 bank loan,
to finance paints and varnish plant now under construc¬
tion.
Dec. 12 filed 20,000 shares ($10 par) common and 50,000
^shares ($2 par) 50c cumulative preferred. Underwriter—
an
underwriting
agreement, the
amendment.
name of the underwriter will be filed by
Offering—The shares will be offered for
subscription to common stockholders of record
10* 1947, in the ratio of % of a share of new
for each share owned and
for
each
share
of
common
1%
shares of
held.
new
on
Jan.
common
preferred
Unsubscribed
shares
will- be offered by the company to the public.
Price by
050 demand note held
Stone
Price—
and $10 a preferred share. Proceeds
be used to augment capital by an
additional $300,000 and surplus by an additional $800,000
for business expansion purposes.
Qontainer Corp., Chicago
Oct. 24 filed 300,000 shares of ($1 par) common.
Under¬
writer— Hornblower & Weeks, Chicago. Offering — Of
Republic Pictures Corp., New York
Registration
originally
filed
July
31
covered
184,821
preferred ($10 par)
and 277,231 shares (50c par) common stock, with Sterling,
Grace & Co. as underwriters.
Company has decided to
issue 454,465 shares of common stock only, which will be
shares of $1 cumulative convertible
•offered
for
subscription to stockholders of record Sept.
5 to the extent of one share for each five held. Issue will
not
be
underwritten.
:
definitely postponed.
Toledo
$32,000,000 first mortgage bonds, due 197$,
and 160,000 shares of ($100 par) cumulative preferred.
Underwriters—To be determined by competitive biddings
Probable bidders include The First Boston Corp.; Halsey,
Stuart & Co. Inc. (bonds only); Blyth & Co., Inc.; and
Smith, Barney & Co. Price to be determined by competi¬
Proceeds—Net proceeds together
are
payment of $53,906,590,
a
July 17 filed 197,500 shares of comnlon stock. Under¬
writers—Glore, Forgan & Co.
Offering—The offering
represents a part of the holdings of the present stock¬
holders. Indefinitely postponed.
& Co., Trenton,
•
Transgulf Corp.* Houston*
selling 45,000 shares, and eight selling
are disposing of the remaining 150,000
Price—$10.50 a share.
Proceeds—From 45,000
sold by company will be applied to working
initially. Offering date indefinite.
pany is
holders
development of oil and gas
Houston. For
•
notification) 2,500 shares ($100
(letter of
10
Jan.
stock¬
shares.
shares
capital
Aires,
Argentine
value115 Argentine
properties.
Westminster, Md.
Co.*
United
The
preferred. Price—$100 a share.
writing. For working capital
5% cumulative
par>
No under-;
Manufacturing Corp.* New Yorte
cumulative con-*
vertible preferred and 230,000 shares of common (par
50c). Price of preferred $5 per share. Of the common
30,000 shares are reserved for the exercise of warrants
up to Jan. 15, 1950 at $3.50 per share and 200,000 are
reserved for the converison of the preferred. Under¬
writers—Names by amendment. Price $5 per share for
preferred. Proceeds—For working capital and expansion
U. S. Television
200,000 shares (par $1) 25c
of business.
Universal Corp.* Dallas* Texas
3
writer—Federal Underwriters, Inc.,
Corp.,
Investment
Bond
Dallas; and Trinity
For additiona3
Fort Worth.
capital.
♦
Lockport* N. Y.
Jan. 13 (letter of notification) 2,098 shares of common
stork (par $10). Underwriter—Hamlin & Lunt, Buffalo.
Price, at market (about $16 per share). Proceeds to sell¬
•
Upson Co.*
ing stockholders.
Utah Chemical &
Carbon Co., Salt Lake City
$700,000 15-year convertible debentures and
225 000 shares ($1 par) common.
The statement also
covers 105,000 shares of common reserved for conversion
Dec. 20 filed
of
debentures.
the
Underwriter—Carver & Co., Inc.,
Price—By amendment.
Proceeds—For plant
construction, purchase of equipment and for working
Boston.
Victory Gold Mines
certificates for 500,000 shares, par
gold pesos a }sKare.'k Underwriters—
Ltd.* Montreal* Canada
400,000 shares ($1 par) capital stock. Un¬
derwriter—None as yet.
Price—25 cents a share: Pro¬
ceeds—For
developing mining property.
BusinessNov. 13 filed
•
Weaver
Bros.*
mining properties.
Inc. of Baltimore
notification) 3,000 shares ($100 par)
4V2% cumulative preferred.
Price—$100 a share. No
underwriting. For operation of business.
Jan.
•
(letter of
6
Worne
Jan.
Swift International Co. Ltd., Buenos
Texas
(letter of notification) 30,000 shares (no par>
common. Price—$10 a share. Underwriter—South & Co.,
13
Jan.
Acquiring and developing
N. J.
195,000 shares common stock (par $1).
Underwriter—C. K. Pistell & Co., Inc.
Offering—Com¬
28 filed
Dec. 6 filed deposit
exclusive of interest and
capital.
Street & Smith Publications, Inc.
Swern
with $4,-
500,000 bank loan and if necessary, the $5,000,000 to be
contributed by its parent, Cities Service Co., will be used
to redeem outstanding debt and preferred stock, involv¬
is selling 200,000 shares and stock¬
selling the remaining 100,000 shares. Price
by amendment. Proceeds—Of net proceeds, company will
use $1,225,000, plus a premium of $12,250, together with
accrued interest, for payment of a bank loan, and $493,500, together with accrued interest, for discharge of its
10-year 6% debentures.
Any balance will be added to
working capital.
Aug.
Edison Co.
(O.)
Oct. 25 filed
company
$30
a common share
—The proceeds will
pany's 75,000 shares will be used for increasing working
capital, with a view to entering the Frequency Modula¬
tion and Television fields at an advantageous time. In¬
common
amendment. Proceeds—To pay $1,569,by South western's parent, General
Telephone Corp., and to reimburse company's treasury.
York.
holders
Indemnity Co. of America, Tucson,
Ariz.
4If company finds it necessary to enter
shares of the issued and outstanding
owned by them.
They are also selling to Hallgarten & Co., for $1,500, plus $360 as a contribution
toward the expenses of issuance, options to purchase an
additional 18,000 shares of the issued and outstanding
common.
Proceeds—Net proceeds for the sale of com¬
(letter of notification) 30,000 shares (no par)
to be offered to stockholders at $5 a share in the
ratio of one share for each three shares held.
Under¬
Telephone Co.,
13, 32,000 shares (no par) cumulative preferred.
Underwriter—Paine, Webber, Jackson & Curtis, New
the total,
Republic
Associated
Dallas; Tex.
stock ($2.50 par).
Underwriter—Bankers
New York
shares, for their own account.
Offering—Price $6.75 a
share.
Options—Selling stockholders are also selling to
the underwriters at 7 cents per option warrant options to
Dec.
Jan.
common
share.
postponed.
•
Louisville, Ky.
60,(500 shares of
Price^lO
Underwriter—The
For working capital.
Reliance Varnish Co.,
Nov. 20 filed
share.
a
Tele-Tone Radio Corp.,
Aug. 1 filed 210,000 shares of common stock (par 5Q
cents).
Underwriters—Hirsch & Co. Offering—Com¬
pany is offering 75,000 of the shares registered.
Eleven
stockholders are selling 135,000 issued and outstanding
Nov. 4 filed
shares by
York
Offering
temporarily postponed.
dividends.
price.
wG
Taylor-Graves, Inc., Saybrook, Conn.
July 12 (letter of notification) 44,300 shares of ($5 par)
cumulative convertible preferred stock and 44,300 share*
common stock (par 50c).
Offering—Price $6 a share for
preferred and 75 cents a share for common. Underwriter
—Amos Treat & Co.
Proceeds—For payment of notes,
ing
14 filed 80,000
June
provide working capital.
Regal Shoe Co., Whitman, Mass.
•,
facilities and to provide
working capital.
tive bidding.
(letter of notification) 197,000 shares (250 par)
common. Price—25 cents a share. Underwriting—Cyyilla
Jan. 10
Solar Manufacturing Corp.
Development of mining properties and exploration work.
Research
additional
common
Ltd., Toronto,
•Offering Price—$0.60 a share to public.
Company has
iiot entered into any underwriting contract. Proceeds—
outstanding bank loans, to finance
additional investments in plant
purchase 18,000
Jeanne
Nov. 20 filed 800,000 shares of common stock
•
will be used to reduce
cumulative
mining claim.
Realmont Red Lake Gold Mines,
vt I Canada
"
price,
mortgages and for general corporate purposes.
(letter of notification) 53,000 shares ($1 par)
common.
Of the total 31,000 shares will be offered pub¬
6
publicly.
San Francisco
Jan. 10
For organization of business
capital.
Santa Cruz
purchase
^^quipment, pay bank loans, and other corporate purposes.
Tuolumne
No underwriting.
share.
and working
will be sold
dealers at a
after customary brokerage commissions, of not
the offering price to stockholders. Proceeds-
Jan. 8
Arts, Inc., New York
Her rick, Waddell & Co., Inc.
Offering—Company is
offering the preferred stock to the public, while the
common is being sold by certain stockholders.
PricesPreferred, $10 a share; common, $4 a share. Proceeds-
Providence
Taneytown, Md., and Arthur B. Don¬
Corp., a
^sub¬
Price—$20 per share. Unsubscribed shares
publicly or privately through brokers or
less than
letter of
notification for preorganization subscriptions for 2,000
shares ($50 par) preferred and $50,000 shares (no par)
common.
Price—$50 a preferred share and $4 a common
•
Aug. 27 filed 60,000 shares of preferred stock ($10 par)
and 75,00t) shares of common (par 50c).
Underwriter—
•
P. Parish,
Frank
offered for
scription to stockholders of record Jan. 16 at rate of one
share for each three shares held. Rights expire Feb. 10.
net
Sanitary Products Corp.
Dec.
Pig'n Whistle Corp., San Francisco
Dec. 26 filed 50,000
No underwriting.
Boston, issuers for Sanitary Products
company not yet organized, on Jan. 6 filed
(letter of notification) 2,907 shares of first pre¬
stock. Underwriters—Stock will be
sold out¬
ferred
•
ovan,
Inc.
Philadelphia Dairy Products Co.,
Dec. 26
ployees of company at $38 a share.
For general corporate purposes.
1947
Offering—The shares will be
None.
Va.,
(letter of notification) a maximum of 7,894 shares
of common to be offered to certain officers and em¬
Jan. 6
,
Thursday, January 1<5,
THE COMMERCIAL & FINANCIAL CHRONICLE
31?
stock
10
Plastics
(letter of
(par $1)
of
(25,000 at $1 per
Corporation
now
Corp.* New York
notification) 239,200 shares of capital
which 64,200 have already been sold
share and 39,200 at $1.60 per share).
makes rescission offer for
the foregoing
Volume
165
^Number 4560
THE COMMERCIAL & FINANCIAL
CHRONICLEf
■MM-
shares. The remaining 175,000 shares
fered, and
one
313
were
yvas sold Jan.
10; 1947 to
privately of-,
group of four
persons at $1 per share. Proceeds will be
chase and equip
used to
at
pur¬
plant, etc.
program
West Coast Airlines, Inc.,
Seattle, Wash.
Sept, 2 filed 245,000 shares ($1 par) common/Under¬
D. C.
ment
of
various expenses,
repayment of bank loans,
purchase of equipment and for working capital.
of
Nov.
27
filed
Lines,
1,200,000
Inc.
shares
($1
the
-
Part of the shares
Inc.
are
outstanding and being sold by four in¬
own account.
Price by amendment.
Wyatt Fruit
Stores,
Zero Frozen Foods
Co., Inc., Bremerton, Wash.
notification) 1,940 shares of 5% cumula¬
Dec. 19 (letter of
Wisconsin Power & Light
CO., Madison, Wis.
May 21 filed 550,000 shares ($10 par) common stock to
be
sold
at
competitive
bidding.
Underwriters—By
proceeds estimated
0aJla$^,texas':|||^3^,B,,i,,,y^s,
Nov. 12 filed 5,000
shares (par $100) preferred stock.
Underwriter—Rauscher, Pierce & Co. Proceeds—Will be
used in part to
equip three new cafeterias, to remodel itr
super markets and to increase
working capital.
ployees Profit Sharing Trust, and for additional
working
capital. Expected to file new financing
plan at early date.
number of shares presently stated
will be reduced if the offering consists of a smaller num¬
ber of shares.
Company will use its
by Middle West porp^
part by pref¬
stockholders of North West Utilities
Co., parent
of Wisconsin, who
elect to sell such shares ot Wisconsin
common which will be
distributed to them upon' the
dissolution of North West
Utilities Co.
erence
from the sale of the
preferred stock
will be used to
provide funds for a wholly-owned sub¬
sidiary, retire loans from banks and from White's Em¬
total
to be sold
are
top holding company of the
System, and
Proceeds—Proceeds
par)
—
and
common
Probable bidders include Merrill
Lynchl
Co.; Glore,
Forgan & Co., and Harriman
Ripley & Co. (jointly);
The Wisconsin
Co., and Dillon, Read & Co. Proceeds—
.
,
:
•
Pierce* Fenner. fic Bdane; White, Weld
dividuals for their
capital stock.
Underwriter—Dillon, Read & Co. Inc. Price by amend¬
ment.
Proceeds
Offering consists of an unspecified
number of shares being sold
by the company and by
William A. Coulter, President and Director. The amounts
toeing offered by each will be stated definitely by amend¬
ment
,
amendment,
Aug. 29 filed 75,000 shares $1 cumulative
convertible
preferred stock ($20 par) and 50,000 shares common
stock (par $1).
Underwriters—First Colony Corp. and
Childs, Jeffries & Thorndike, Inc.
Offering—Company
is offering 75,000 shares of
preferred; the 50,000 sharei
Auchincloss, Parker & Redpath, Washington,
Price—$7 a share. Proceeds—Will be used for pay¬
Air
undei; way.
now
White's Auto Stores,
—
Western
of
$6,500,000 together with a $7,500,000
bank loanr toward payment of
its promissory notes and
to finance company'*:
equipment and facilities expansion
<"■
writer
minimum
a
tive preferred
and 200 shares of
preferred share and $250
a
common.
Price—$100
share.
common
a
No under¬
writing. For reinvestment in .business.
#»%
Prospective Security Offerings
(NOT YET IN REGISTRATION)
INDICATES ADDITIONS SINCE PREVIOUS
ISSUE
•
V.
(Only "prospectives" reported during the past week are
given herewith. Items previously noted are not
repeated)
Alabama Great Southern RR.
Bids will be
received
(1/23)
Dated Feb. 15, 1947 certificates will
mature in 10 equal
installments 1948-1957. Dividend rate is to be
specified in the bids. Probable bidders
include Halsey,
Stuart & Co.
Inc.; Salomon Bros. & Hutzler.
at
company's office Room 2018,
St., New York, up to 3 p.m. EST Jan 23 for the
sale of
$1,520,000 equipment trust certificates series J.
Dated Feb. 15, 1947 certificates will
mature in 10 equal
annual installments 1948-1957. Dividend
rate to be spe¬
cified
in
the
Stuart & Co.
•
bids.
Probable
bidders
include
Halsey,
(1/23)
Orleans
&
Texas
Pacific
Bids
will
be
received
at
company's office
in
•
70 Pine St., New York
up to 3 p.m. EST Jan. 23 for the
sale of $1,700,000 equipment trust certificates Series
K.
Proceeds
will
of the cost of 15 Diesel
electric
and
cars
1,100 freight
be used to
locomotives, 57
United States Government,
State, Municipal
•
Halsey, Stuart & Co.
Scruggs-Vandervoort-Barney
Corporate Securities
passenger
ferred
Blair 6- Co*
10,000 shares
and
to
of Denver
finance
a
PHILADELPHIA
BUFFALO
•
•
CHICAGO
•
Seaboard Air Line RR.
Company will
CLEVELAND
•
PITTSBURGH
•
ST. LOUIS
SAN
•
FRANCISCO
extension
The Swift & Co.
of
in
con¬
new
25-
2%% coupon while the
serials were priced at par.
a
Brisk
term
Co.'s
$50,000,000
serial
and
of
debentures
torought to market yesterday, got
the new year in the underwriting
business off to a promising start,
proving pretty much an "open and
With ohe banking house acting
for
dications
agent
bentures
were
that
prospectus,
The
recent
ing
on
the first undertak¬
which the so-called "red-
may
£
circuinstainces
offering,
.!•
!
*
viewed
it
as a
surrounding
was
hardly
the
to be
real test of the ef-
fectiveness of the
new
proced¬
ruling of the SEC
form
provided
to
than had been
consequence
When
prospectus
with
additional information
offering.
Difficulties surrounding the
f
ers
could not
see
their way clear
to market the
issue on
that
basis, ,and the company called
for
new
bids to be opened Jan.
17, 1947.
"
round
meantime
bankers
pro¬
ceeded to submit bids
fitting their
marketwise. The company
ideas
cleared sponejr
stock issue will be under¬
underwriters Union Securities Corp.
the
week-end
several
days.
This fi-
loan
will
bonds
out¬
and the financing will
the City's program in
out
Rail
series
R
is
icates
is
to
today, at
be
marketed,
perhaps
price of 100.
a
Montreal Financing
the
an
city
ready
issue
for
gram
to
of
with
of
$77,000,000
of
issue
of
been deferred
regarded
as
fore¬
of
a
period of greater
activity in this phase of the in¬
-
of
much
war
condi¬
supplement
their rolling stock with additional
new
units
in
substantial
volume.
Airline Financing
Airline
financing,
planned earlier,
of
reason
is
sues
but
market
beginning
some
much
of
to
it
held up by
conditions
take
sizable
last
shape
new
is¬
moving into prominence.
Transcontinental
certif¬
the
dqe to
tions and likewise to
$14,970,000
equipment trust
runner
Western
&
Air, of course, holds the spot¬
light
momentarily
because
of
the furore which attended prep¬
arations for the change in cap¬
Pennsy's issue will mature in
two
mar¬
Montreal
close
an
-
replacement
again with
Equipments
vestment market.
Having already disposed of
refunding issues in the home
on
Corp.?s\,
antiquated equipment which had
replace
now
Pennsylvania Railroad's call for
is
New
15
on
annual
Feb.
new
bonds, payable in U. S. dollars.
Terms y probably nviU be an-
1,
installments the last
1962
due to be opened
open
block of 45,-
The preferred
Probable
and Stone & Webster Securities
coupon
bids
due
coinpiete
Corp.
fall,
today.
a week ago
corporation.
written.
new
accepted a bid of 98 % for the or¬
iginal dividend rate, and the stock
Inc.
program.
that direction.
ment bankers for the flotation of
a
(Pa.)
bids because of too severe
terms proposed by the issuers.
standing
Mills,
stockholders
But
about
preferred stock
14,
any
The
a
Inc.
Mohawk Cotton
was projected late last
summer,
but failed to attract
York and other American invest¬
new
&
York
over
for
higher
in
conditions
a
trnancing
re¬
478 shares of
Lines
since bankers have been in the
Canadian city tieing up loose
ends
the
when
to
nounced
by Birmingham Elec¬
tric Co. to market
afyout
1
4.20% dividend rate and pre->
scribed that no bids of less than
100 would be considered. Bank¬
ket,
move
expected, and as a"
of
changes
along
corporation
funds
improvements, reducing
outstanding bank loans (which on Dec. 1, 1946, amounted
$7,300,000), and increasing the working capital of the
Jan.
Gallagher, 15
company first of¬
fered the stock for bids it set a
such
Birmingham Electric
cent
(EST)
sup¬
be considered essential prior
to the
herring" prospectus was exten¬
sively used but, considering the
preliminary
circulated,
allows investment bankers to cir¬
cularize prospects with the
pre¬
whatever
was
the
widely
had given purchasers ample
op¬
gauge the status of
the debentures in advance.
dealers
This
demand
offering with in¬
portunity to
the issue the de¬
quickly placed and
liminary
reported them hard to
plement
find around the offering price.
as
institutional
soaked up the
noon
J
financing
$35,000,000
one-to-ten year debentures.
The
term issue was priced at 100
V2
carrying
12
lines that had been
indicated.
debentures and $15,000,000 in
year
to
Owen Otis Farr &
St., New York for the sale of
$3,000,000 equip¬
ment trust certificates.
The dividend rate which
must be
change Commission.
sisted
(1/29)
up
Broad
permissible under the recent
ruling of the Securities and Ex¬
&
bids
29 at office of
Willkie
ure
Swift
receive
plan for*
formulated, it
voted to increase^ the
^author¬
ized common stock from
962,046 shares, par $1, to'1,500,000 shares, par
$1, and approved the creation of an issue
of up to 160,000 shares of
preferred stock, par $50^ of
which it is presently
contemplated that part or all Will
be issued when market
conditions permit for the
purpose
of financing a
program of plant
program.
NEW YORK
•
the
3,000,000
no
Patterson, President announced company
approximately $10,000,000 of preferred
modernizing and expansion
•
INC.
BOSTON
Air
A.
sell
Utica
Jan.
Dry Goods 4^2% pre¬
and
additional
to
Jan. 28 stockholders
among other things will be asked to
authorize an issue of
60,000 shares of preferred
.stock,
of which
company plans to issue $2,500,000 to
Inc.
Inc.
modernization
a
place
been
...
•
used
to refund
to
shares
although
had
author¬
a later date, but that United
currently is
position to tell when it will take
place qr.how
much will be involved.
Probable underwriter Harriman
Ripley & Co.
Jan. 15 company has under
consideration the issue and
sale of 20,000 shares of
$4.50 cumulative preferred stock
when market conditions
permit. Proceeds would be
and
to
not in
Pennsylvania's shops. Probable bidders include
Salomon
Bros. & Hutzler and
obtain
that
,
,
the
financing at
the latter to be built in the
cars
1,000,000
shares
advisable
increase
stock. Additional details are not
available at this time.
Mr. Patterson also announced
there will be further
80%
cover
to
13 W.
plans
to
appropriate.
United
Jan.
voted
from
additional
deemed
appear
company will receive bids for the sale
of
l-to-15 years.
of
position
(1/23)
stock
Company announced
sale
was
$14,970,000 equipment trust certificates Series
R, maturing
Ry.
2018,
room
RR.
stockholders
shares.
Co.; Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc., and
Shields & Co.
(jointly).
Pennsylvania
capital
the
Co.; Glore, Forgan
•
13
ized
15
Jan. 23
Transcontinental & Western Air, Inc.
Jan.
&
Cleveland and New York banks.
(1/23)
(City of)
reported, city is exploring the
advisability of
early sale in this country of $85,639,000
bonds to retire
outstanding higher cost debt. Probable bidders if bonds
are sold
in United States include
Harriman Ripley &
Co. Inc., and Dominion
Securities Corp. (jointly); The
First Boston
Corp.; Smith, Barney &
company's office, 3400 Terminal Tower, Cleveland, Ohio
on or before noon
(EST) Jan. 23. The certificates are to
mature Feb. 15, 1948 to 1957. Probable bidders include
Halsey, Stuart & Co. Inc.; Harris, Hall & Co. (Inc.) and
New
Montreal
Jan.
The company is inviting bids for the sale of
$2,300,000
equipment trust certificates. Bids will be received at
Cincinnati,
Probable
•
O
Inc.; Salomon Bros. & Hutzler.
Chesapeake & Ohio Ry.
multiple of Va of 1%, is to be specified in the
bid^
bidders include
Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler.
a
annual
70 Pine
a
bids
are
week from
Chesapeake & Ohio will
bids
tificates
The
and
on
for
the
country's
$2,300,000
same
cer¬
day.
railroads
ital
But United
nounced
sale of
counted upon to embark on a pro¬
permit
it
to
able
an
tration.
Lines
has
an¬
$10,000,000
new pre¬
early date, and West¬
Air Lines
new
Air
plans looking toward the
some
ferred at
ern
are
to
necessary
undertake needed financing.
already has
a
siz¬
block of stock in
regis¬
..
Jw
.W- &*£■
THE COMMERCIAL & FINANCIAL CHRONICLE
314
ceded
by a period of dullness.
during such a period of
dullness that some peering in
Waiter
the future will be possible.
(Continued from page 277)
Anaconda
bought at 37
pose? To make investing with a stop at the same fig¬
easy? Don't be silly. When ure; Dresser at 17, stop 18,
speculation is made difficult, are still above their critical
were
It is
neither
commissions fall off. Even the
time
Tomorrow's Markets
Whyte Says-
on the NYSE
with the commis¬
prices of seats
fluctuate
sion business.
of the
business," indeed!
I'll
Now for the market:
pointed with pride to
the market emphasizing that
the lows were getting higher
every day,
giving you the
impression that such a market
was headed
up. In passing I
did mention that one day the
averages
broke up their
pretty little picture by break¬
ing their previous day's lows.
But I shrugged it off as un¬
important, particularly when
subsequent day's markets
the
losses.
Long
ago I have learned never to
overlook anything in the mar¬
or
You
1
matter how insignifi¬
no
cant
how
saw
prejudiced I
was.
the result. Satur¬
day and Monday they dropped
down sharply and there I was
with a long position. In the
of
course
the
decline
two
stocks penetrated their stops.
tt don't, and didn't, like
it.
to
see
But that is
why the stops
are there; to limit losses. Per¬
haps the other stops will also
be
broken
this.
If
so
before
read
you
the
figures given
here in the past few weeks
will take
care
of them.
Somewhere around 167-170
the averages seem to have a
stopping point, a level from
which a rally of some kind
can
get
started.
But
if the
rally is to have any holding
power it will have to be pre-
Mevibers
New
York
New
Commodity
Chicago
Stock
Exchange
Curb
Exchange
Cotton
York
Exchange
Exchange,
Board
of
New Orleans Cotton
Inc.
Trade
Exchange
—Walter
[The
views
expressed
Whyte
in
this
do not necessarily at any
coincide with those of the
article
They are presented as
of the author only.]
N. Y. Cotton Exchange Bldg.
DETROIT
21, 1946
gaining began.
—
that
a
suf¬
swered
assistance
mediator.
the
union
"Yes."
of
The
a
gov¬
both
To
such
swiftly
industry
Further,
it
of
(Continued from page 270)
or
Of equal
the
fact
question—shall
not?
importance is to grasp
American
that
workers
fully understand that our nation
today has within its grasp the
golden
chance
of unparalleled
production, employment and na¬
tional
prosperity.
If fully de¬
veloped we can foresee ai'n everincreasing standard of living for
the American people. And it must
suffer
from a 25 to a
30% cut in your weekly income.
anything
For millions of American work¬
ers
an
even
industry
should
be
the
rejected
President
States that
of
a
the
N. Y.
PITTSBURGH
GENEVA, SWITZERLAND
LAMBORN & CO.
5 99 WALL STREET
recalled
decision
United
wage
steelworkers.
NEW YORK 5, N. Y.
SUGAR
Exports—Imports—Futures
In
the
other
two
industries,
*
•,
average
weekly earnings of the workers
in April, 1945—or about VE-Day
In September of
weekly earnings had
declined to $50.28—a loss of $6.04.
Remember—this drop occurred in
spite of the wage increase that
had been obtained in February;
$56.32.
—were
1946
these
Maintaining
Real Wages
Adjusting the present weekly
wage on the basis of the rising
living
costs,
the
steelworkers
would have had to receive in Sep¬
tember of 1946 a weekly income
of $64.66, or an increase of $14.38
to have
the
had
same
real wages
they enjoyed in April of 1945.
And the cost of living has risen
considerably since September of
Whether
the
employees
same
plants
For example: the of the Conference, a pattern could of all controls was the swiftest
been
devised
which
if means of inducing full production
provisions of the tax have
law; provisions authorizing cor¬ adapted through collective bar¬ and bringing about a lowering of
porations to accelerate amortiza¬ gaining to particular industries, prices.
tion for war-built plants during would have assured continuity of
The Result of De-Control
the years of high taxes; various production and the avoidance of
But what has been the result?
statutes which
simplified reim¬ industrial strife.
But for whatever the reasons
bursement in the case of contract
The Bureau of Labor Statistics
termination and recovery for in¬ may have been, Mr. Murray's sug¬ reported on Dec. 30 that retail
ventories built up under war con¬ gestion went for naught. No solu¬ food prices rose 34% during 1946.
tracts. In addition, surplus plants tion emerged from the Conference Cost of living essentials in gen¬
of the nation's leaders of industry eral were up 18% during the year
were to be available at amounts
relief.
below
The
their
reproduction
profits tax was
and labor.
1946.
This increr#:e in the cost of
suggesting that all
problems of industry were solved,
manufactur¬
ing, and electrical manufacturing.
living wTas the highest since 1918
and
many times
the moderate
rises of the preceding three; years.
On Nov. 15 retail food prices had
but at least many measures were
These
the most dramatic and
reached the highest point on rec¬
excess
repealed.
I
am
Strikes
the
not
as
thereafter
occurred
in
basic industries such
several
steel, automobile
were
greatest attention in ord, surpassing a previous high set
taken to ease your burdens.
the press.
From these disputes in 1920. At that very time all con¬
trols over prices had been elim¬
On the other side of the ledger, has emerged the unfair and thor¬
inated.
we
should
examine
the
lot of oughly unfounded accusation that
labor was completely at fault and
On Friday of last week was
American
workers
during
the
same period.
In many industries, primarily responsible for indus¬ published the financial report of
trial strife and its unfortunate im¬ a large meat packing corporation.
even where full employment con¬
tinued, the workers suffered a pact upon our national economy. For the fiscal year ending Nov. 2,
sharp slash in weekly earnings
Any fair analysis of the facts after taxes, this meat packing
earned
$6,700,000
as
due to curtailment in their work¬ should
negate
and
completely company
any
such misunder¬ against $2,500,000 for the preced¬
ing hours. The steel industry con¬ eliminate
ing year. Can it be fairly sug¬
tinued at fairly high production standing.
gested, in light of such facts, that
levels after VJ-Day—but the 48First, as to the events which
the wage increase to the meat
hour workweek was curtailed to led
up to the strikes.
I can cite
packing workers has caused the
40 hours and less. This meant a to
you one case history—the steel
soaring prices for meat products?
loss of at least 12 feours pay be¬
industry.
Collective bargaining
cause of the elimination of over¬
Do you believe that such facts
began in September of 1945.
time rates.
soothe the feelings of
have already explained to you the tend to
who
find
themselves
Ask yourselves—what it would severe cut in wages which the workers
enacted
or
governmental
steps
..
the
namely, automobile and electrical
manufacturing, the strikes were 1946.
were
rehired at the
prolonged in the fact of the re¬
Do you know what this means
for civilian production or had to fusal of the employers involved
to the
steelworkers?
A
nation¬
re-migrate back to their original to comply with the decisions of
wide
survey
conducted
among
prewar civilian jobs — their new Fact-finding or Mediation Boards
workers' families in basic manu¬
employment was at wage scales far appointed either by the President
facturing industries by the CIO
below that which they had re¬ or the Secretary of Labor.
shows that 71%
of the families
be recognized that industrial strife ceived during the war.
Of course in the steel and other interviewed had less than
$300 in
At the same time the cost of
may thwart
if not destroy this
industries there was the constant
savings. Over 80% of the families
living did not decrease or even refrain from representatives of
opportunity.
surveyed
indicated
that
rising
You are probably wondering at remain stationary—it steadily in¬
industry that wage increases could prices forced them to buy less
this moment—if we are aware of creased. I am not now going to not be
granted without substantial milk, butter and eggs per week
these
dangers, how does labor cite figures of the Bureau of La¬ increases in prices. It is a com¬
and had cut their purchases of
justify the
crucial strikes and bor Statistics relating to the cost monly repeated accusation that
clothing.
stoppages which occurred during of living. I am prepared to accept the present inflationary situation
Yet it is among the large masses
the early part of last year or op¬ the statements of any wives as to is due almost
entirely to the fact of American workers that indus¬
pose legislation
designed to de¬ what occurred to the cost of living that labor did exact wage in¬
try must rely for the purchasing
during the past year.
stroy our right to strike?
creases
during the early part of
power to buy the goods to be pro¬
It was in the face of this situa¬
It is your responsibility, as well
1946.
duced.
In the face of the picture
tion that the Labor-Management
as that of the leaders of labor, to
which I have described to you,
was
convened
by Wage Increases Justified in 1946
probe into the underlying facts— Conference
do you believe that these work¬
to ascertain why in the face of the President Truman in the City of
The cold, stubborn facts reveal ers can
buy new automobiles, new
known hazards which workers as¬ Washington in November of 1945.
that labor was fully justified in
refrigerators, new radios, or the
sume in the
case of a strike,
do There were many at that Confer¬
obtaining a substantial wage in¬ many other products of American
they still feel it necessary to be¬ ence who felt that the only prob¬ crease and that if
industry had industry?
lem to which attention should be
come engaged in that struggle to
cooperated, thereby avoiding in¬
Compared
with
these human
was
that of
developing
achieve ends which they deem given
dustrial strife, a high level of pro¬
just and vital to their existence. machinery for the elimination of duction that was then obtainable problems, we find a striking con¬
trast for corporate profits.
industrial disputes. A very laud¬
In De¬
Are their grievances well founded?
would have resulted in profits to
cember of 1946 we were at ap¬
If so—only measures designed to able objective — but one which
industry far in excess of any pre¬
proximately a 25 billion dollar
meet this need look toward the paid absolutely no attention to the
viously enjoyed in the history of level of total
corporate profits be¬
attainment
of
industrial
peace. basic practical facts of life which
this country.
fore taxes. This volume of profits
the
nation
at
that
This is the field of inquiry which confronted
I bring to your attentian the
time.
equals that of the best war year.
I shall endeavor to explore.
Mr. Philip Murray, President of 18th quarterly report of the OPA, It is more than 2Vi times the 1929!
VJ-Day found the nation con¬
issued on June 30, 1946. This re¬ volume of
profits and nearly five
fronted with many serious prob¬ the CIO, beseeched the Confer¬
lems. Never before in our history ence to address itself to an issue port concludes that price advances times the average 1936-1939 profit
made by leading industries were volume.
attention and
a
had we so completely converted that demanded
solution. The crying need was the not necessitated by the wage in¬
our national resources for all-out
On an after-taxes basis—which
creases granted in the early part
war
is most relevant to the earnings
production.
Overnight we one wiiich I described to you,
of 1946. The OPA points out that
were to reverse our path and re¬
of stockholders—corporate profit^
namely, the dwindling income and
the rising cost of living for the actual price increases made by 15 are approaching 15 billion dollars,
convert to peacetime pursuits.
industries before June 30, 1946
average American worker.
fully IV2 times the level of the
were
3.6 times as large as were
Recent Helps to Industry
We had felt that if this Confer¬
best war year.
Due to the lower
necessary, to offset the wage in¬
ence
undertook
to
furnish
an
Many laws had been enacted by
pre-war tax structure, corporate
creases granted.
Congress during the course of the answer, the growing and swell¬
profits, after taxes, are now about
1946 witnessed the abolition of 1% times the volume of 1929 and
war
and
subsequent thereto to ing discontent and unrest could
been
alleviated.
We had all controls over prices.
It was 3% times as high as the average
soften the shock of reconversion have
for management and provide fi¬ hoped that through the medium then urged that the elimination of the years 1936-1939.
tinued.
received the
.
DIgby 4-2727
-
industry, which is
barometer,
as
sharper income slash
.
f
economic
our
1946.
War industries discon¬
occurred.
steel
good
a
re¬
increase of a
specific amount be granted to the
a
the
an¬
that the strike occurred only after
he decides the
In
plied "No."
the
bring
me
situation up to date.
almost
Before the strike occurred, the
Secretary
of
Labor
twice
re¬
quested the parties to resume col¬
lective bargaining either with or
the
prices of goods which
they must buy for bare living?
Let
oc¬
collective bar¬
Was
inflated
"No."
ficient cooling-off period?
requests
Labor's Attitude and
was
ex¬
the strike did not
Jan.
ernment
costs.
NEW YORK 4,
until
without
far
And other Exchanges
CHICAGO
Pacific
actly 40 minutes. It
cur
in
answer
carry-back
H. Hentz & Co.
York
Thursday.
wage increase.
a
our
four months after
those
nancial
Established 1856
New
More next
for
case
received
Even so,
Chronicle.
Southern
and
sent its
We
*1
Ohio
he strike
week I
ket,
though in
you take
did
losses.
points. Both Gulf, Mobile and
as
cancelled
stock
"Misconception
go even further. I'll say that
fully 75% of the buying is
done for the purpose of sell¬
ing in the immediate future
for a profit.
•
stopped,
Thursday,- January 16, 1947
to your standard of living
if at a certain date you were to
mean
experienced. ! caught between shrinking weekly
pnrnirip-s and constantly risihff and
The union took two days to pre¬
steelworkers
had
'
is
Clearly, our economic situation
one fraught with many dangers.
Though producing at an all-time
high level, with almost full em*
ployment, there appears to be a
calm acceptance of an approach¬
ing economic crisis.
the
Some prefer
less ominous term of
"reces¬
sion."
spokesman
there
suggestion
that
if
only be patient
and housewives prove to be more
From
one
the
comes
workers
would
prices will eventually
This, of course, is an
admission that the price situation
obstinate,
come
down.
is
intolerable one.
an
It
; '
-
•
be of historical interest
to note that in 1806, in the famous
may
Philadelphia
when
cordwainer's
case,
of workers were
being prosecuted as members of
a conspiracy for- being
engaged in
a strike for a wage increase,, the
suggestion was also offered to
them that they should have been
iriore patient and await price de¬
a
group
-
creases.
-1
would
certainly be less than
frank if I did not express a very
profound skepticism of the like¬
lihood
of
voluntary price
de¬
creases on the part of the
very
corporations which
have
brought about the dangerous in¬
flation pf..the past jsix months..
same
Prices may come down as a re¬
sult of
a severe
depression/but the
'K.
Volume
Number 4560
165
economic
bor
an
commodity
consequences would be
appalling penalty to pay.
,,-/
,
Our analysis of the economic
situation—approached with a sin;
effort to make
cere
made
wage
instead
there
We
emerges
are prone to seek a culprit
solutions of difficult prob¬
At the
But after the witch-hunt is
there
will
still
remain
over,
the
task
of
providing the answer to the
crying needs of the people for
security and a decent standard of
living.
•
!
business'
long
taken
of
masses
re¬
their
frequently offered
a
be
made
A
would
actually
industrial strife
tend
to
—
the
generate
nation's
-
wide
be illegal
that
action
.monopolistic
We
or
engage
it
keep
in
relationships.
labor
bona
a
American
is
its
collective
not
are
a
by
technique utilized
those who really
concerned
With
the
skills
the
of
organiza¬
fide
highly
the
desire
to
proposed, which
required
union
than is
made
for
If the union is
assumption
—
which
is
false
and
forget that
oppo¬
who
seek
to
opposition
to
union
se¬
National
Labor
Relations
Board.
It
tute for the mutual
and cooperative
tion
is my
sincere
Further,
that
the
unions
are
proposal
in
seen
assumes
The Government's
participation
be through an
apparently
this
to the resumption of the
per¬
nicious anti-labor practices of the
past. A wave of industrial strikes
would
thus
be
initiated which
protection
would
spect to the manufacture and sale
welfare and promote bitterness in
our
labor relations for
genera¬
tions to come.
ofr commodities.
But
we
have
equally sought to eliminate com¬
petition in wage rates, not to fos¬
ter competition in sweat
shop
ditions.
»
con¬
One-Sidedness of Wagner Act
A
evil
,
compared with
an
poration seeking
public by -joint
In
gouge
attempt is being made to turn
clock of industry backward.
The Thirteenth Amendment to the
United
States
Constitution de¬
stroyed the institution, of slavery
and
issue
the
price >poiicies,
declared that the labor of
human beings could not be con¬
frequently discussed
(for which legislation is pro-
"one-sided."
cor¬
with
charge.
-
V
We
the
sincerely
fairness
of
I
of
their
yearning
through
legislation
economic group to defeat
legitimate aspirations would
negation of our American
any
its
be
a
DIVIDEND
policies,
assure you
we
l:
earn¬
"
that any such pro¬
would receive the most
co¬
„
lions of members of the CIO.
DIVIDEND NOTICES
dend payable February 15,
1947, to holders of
of the capital stock of the
Company of
at the close of business on
January 24,
1947, at the rate of one share of capital Stock
of the Company for each nine shares held
by
them, provided that no holder shall be entitled
to receive any fractions of a share
and' no
fractional shares shall be issued, but in lieu
thereof scrip certificates shall be issued.
record
Board
of
&
has
declared
this
day the following quarterly dividend:
Common Stock
payable
record
15#
February 15, 1947, to holders of
close of business January 20, 1947.
on
at
fepetrctr Eel to as & g>on«, int.
A
been
1947,
of
quarterly dividend of $0.60 per share has
declared on the stock, payable March 10,
to Stockholders of record as of the close
business February
L.
15,
1947.
WICKSTEAD, Treasurer
PRODUCTS CORPORATION
The Board of Directors has declared a
regular'
quarterly dividend of 25<j> per share and an
dividend of 25# per share on the outStanding Common Stock, payable on February 1,
1947, to stockholders of record on January 11,
extra
1947. The transfer books will not close.
share
per
MURRAY, Secretary,
NATIONAL DISTILLERS
ELECTRIC
Directors
No. 47,
MATTHEW T.
THOS. A. CLARK
December 26,1946.
treasurer
Dale Parker
January 9, 1947
3C
Secretary
$3 Cumulative Preference Stock
The
Opportunity to become
with
old
house.
executive
unlisted
and .situations
stockholders
of
record
coodAUR
DIVIDEND
At
a
regular meeting of
the Board of Directors
of The First Boston
this
Over The Counter
Trader Available
ence.
Salary
.
experi¬
following.
commission, oif
Box M-19rCom-
or
mercial
'
years
Good
both*
an
d
Financial
Chronicle, 25 Park Place*
.
STACY, Secretary.
NOTICE
The Board of Directors
Boston, Mass., Jan. 9,1947
in collective
February 5, 1947,
February 14,
GEORGE L. BUBB
Treasurer
SITUATION WANTED
through the formation of
cprppr^tions/ The
corporations
themselves / were
permitted; to
t
The
1947, at 6 P.M.
York 8, N. Y.
action
of
January 14, 1947
Wilmington, Delaware
A quarterly dividend of 40 cents per
share will be paid March 10, 1947 to
Chronicle, 25 Park Place, New
Twenty
Directors
holders of record at the close
THOMAS H.
Consecutive Quarterly Dividend
cooperation. State experience.
Box H 116. Commercial & Finan¬
completely out of
balance. Employers had the un¬
contested right to pool their re¬
of
Corporation has declared a dividend of 75c per share, accrued
at January
1, 1947 upon the out¬
standing $3 Cumulative Preference7
Stock, payable February 14, 1947
to the
established
Statistical
Board
United
of business
Securities Salesman with Clientele
were
engage
the
patterns
who must share the responsi¬
JAMES
CORPORATION
The
take
sidered;in the same category as
[only pieces of property or »chatband together for the
purpose of
telS,/',///: |
///l/// presenting a
.united |ront. to labor
In 1914s the Clayton Act:
laid On the Jnatter of wages, hours and
down* ^principle
Working conditions. On the other
hos'dared openly; Tto deny in the hand,- the: worker was
helpless
years since, namely, that "the la- "as an
individaul to cooperate with
national
NOTICES
COLUMBIA
GAS
.
and
facilitate
national
operative
and
sympathetic
response from the leaders and mil¬
One-Hundred and First
Prior to the
passage of that Act,
the rights of the
employers and
employees
to
of
bility and who have the practical
knowledge necessary for the appropriate solutions.
HELP WANTED
-
sources
addition,
formulation
There is not a single in¬
dustrial State in the United States
in which a union
may not be sued
in the appropriate State
courts
pqsed) is that the Wagner Act is
to be
industrial
to
third
service
maximum of indus* /
trial peace within the framework
of the American
system.
a
suable.
cial
Denied
IWhen it is urged that a com¬
bination of human beings in a
labor organization to advance
their conditions of work is
seriously injure the public
expanded
conciliation and mediation
to achieve
judgment that
joins with employers in
for breach of a collective
bargain¬
legislative prohibition of union
conspiracy is just as liable
security would immediately give ing agreement.
the employers.
rise
But
and
em¬
shares
Repression
apart
from employers and
enjoy a spe¬
cial privilege under the law.
The plain fact is that unions are
sound
should
men
can
essential.
alleged
class
a
a
Perhaps a more realistic under¬ GUARANTY
TRUST COMPANY OF NEW YORK
standing by labor of the problems
New York, January 15, 1947.
of American business is
The Board of Directors has declared a
divi¬
equally
annually which up¬
hold union grievances is a decision
that an employer has violated a
one
for
country's leaders of industry and
labor.
Certainly these are the
ever
for economic security, is essential
awards
On the record, there are
therefore hundreds of proven em¬
basis
peaceful relationship between
ployers and employees.
a
is not deemed sufficient.
.Our national policy has always
insisted on competition with re-
the
prosperous
—
contract.
responsibility
spirit which must,
be
for any program
designed to fur¬
ther industrial peace.
required,
the records of the LaFollette Com¬
mittee
and
by
the
records
the
There
and
understanding of the
bread-and-butter needs of Amer¬
that unions and unions alone fre¬
non-
understanding,;/
estly recommend frequent meet¬
ings of representatives
of
our
and
of
,,
freedom-loving people
accept for industrial peace.
is no legislative substi¬
must
gram
workers,
;
and self-discipline on both
sides,
is the instrument which a
demo-;,'
cratic and
fair and
curity is fully borne out both by
of
intensified
more
the
the
easily be
dissipated and the golden oppor¬
tunity lost if we find ourselves
plunged into internal discord and
ican
profoundly believe that the
of collective
bargaining,
increasingly developed
through
the
economy the world has
can be
firmly based.
But these factors
•
We
of
which
upon
advanced
$
process
and
technique
management,
most
meet their just demands of freedom from want and freedom
from?
fear and insecurity — but rather
to destroy the
only means which
they
have
through
which
to
achieve these very ends.
the
developed
workers
extraordinary
goal
of industrial peace. An
imaginary
evil in labor relations is created.
A "cure" is then
of
bar¬
machines,
union violation.
Which
such
the
in
This reveals
frequently
approx¬
ployer violations for
ism
that
today
to set
up
a
conspiracy to control the
trade in any commodity or to
control
prices.
A
labor
union
the
Today
destroy
unions and collective
bargaining.
This identity between anti-union¬
the anti-trust laws
is illegal for any group
<as
with
A realistic
Responsibility
employers
under
it
tions
and
conflict.
sition to union security
invariably
been the program of those
other
mind
union.
bility under collective bargaining
agreements
allegedly similar
to that of employers.
new
has
practices."
should
a
bership?
unions
in
of
—
services also share the obligations
and responsibilities of union mem¬
representing the workers of two
'or more employers to take
joint
wage
use
into abandoning
power
Another oft repeated suggestion
American
million
Labor cannot
or
labor
Employers
destroy
,
bargaining
for "a union
harmonious
quently violate collective bargain¬
therefore, to perform its services ing agreements.
for
everyone,
It should be realized that
why should- not
every¬
those receiving the benefits of its one of the
thousands of arbitra¬
For example: one charge is that
unions are monopolies and there¬
fore either labor should be sub¬
jected to the anti-trust laws or
industry
a
members.
misfortune.
'should be prohibited,
i
It has been' suggested
is
is that labor unions must be made
to assume full financial
of
|
(that
way to
by law to if adopted would result in pro¬
traditions and a free democracy.
just bargain for found injury to sound labor rela¬ For
this reason, no one can ex¬
all
members
of the bargaining tions and in a
weakening of labor pect any group of Americans to
unit. It is actually illegal for the
organizations themselves.
accept without deep bitterness and
employer, through collective bar
The specific proposal for union
an
unyielding opposition measures
gaining, to make better
terms responsibility is based
upon an
deliberately designed — not to
with the union for members
today,
that
they
to
of
enjoy the benefits
security contracts.
union
make
us
our
nine
gaining
encourage
conclusion
our
feature
relations.
union
they would not assist in the solu¬
tion of the fundamental economic
is
there
responsi¬
workers
'
lit
and
employees through
Financial
illegal.
security is neither
rare
imately
anti-labor
problems which disturb
theatre
constitutional right to
no
economic
pro¬
Union
judgment that
indus¬
We sincerely believe
labor practice has
There is no con¬
sug¬
nor
our
crowded
coerce
Union Security Must Be Kept
I should like to devote a few
to an analysis of the more
trial peace.
unfair
an
likewise
bargaining
jminutes
It is
dis¬
stitutional, right to yell "fire" in
visions for union security hereto¬
fore negotiated through collective
Anti-Labor Measures Ineffective
they would not
of
been committed.
mo¬
a
labor
•measures.
employer's
an
threats
that
march
gestion for legislation is that
they provide for a high stand¬
ard of living or general prosiperity.
mentioned
carries
be
the
—
5
•
resources,
only when
To say
Another
the
must
strikes in the economically
backward countries
but neither
'frequently
is
of
do
[
It
speech
freedom cannot survive."
con¬
;many
-
an
democracy. If industrial
democracy is permitted to perish,
their proud heritage of political
people who
buy the goods of American indus¬
try.
One does not hear of too
:
of
charge and warns of economic re¬
prisals that the Labor Board holds
upon
the
have
anti¬
labor',
heart
dustrial
"
power
'curb
the
nopolies is allowed to continue
will result in abandonment of in¬
remedy the economic, difficul¬
ties facing American workers to¬
day — economic prosperity would
thereby be assured.
purchasing
and
been
strained while
at the
Illegalizing strikes does not
Anyone who is familiar with
the field of labor relations
recog¬
nizes that a lawsuit is the
simplest
and most effective
.
.
democratic program of those who
to
fer
inequality
favor the corporate state.
that labor unions should
I wonder if anyone would be so
naive as to suggest that if all
| strikes were forbidden—and
| same time no steps were
bar¬
employers.
which the Act
sought to remedy grew out of
employer interference with selforganization of employees.
Cer¬
tainly no law is needed to prevent
structure.
.
lems do not easily appear.
moment it is "labor."
|
of the
power
employees from restraining or co¬ live in peace and
harmony strive
ercing employers in the exercise in every way
possible to free
anti-trust division of the Depart¬ of their right to
self-organization themselves of legalistic technical¬
ment of Justice, in a recent speech and collective
bargaining.
ities.
had this to say on the subject:
A good example of the
The sheer chaos which would
way in
"The concentration of economic which critics of the
result if a labor organization or
Wagner Act
power-in this country is increas¬ create false issues can be seen in
employer, instead of filing griev¬
ing above any previous crest of the
so-called
plea
for
"free ances under the
contract, sued in
monopoly in our history.
As speech."
Many of these critics a court of law for violations of
it stands at the present
moment, complain that while an employee the contract, is indescribable.
the American people do not have enjoys
free speech
under
the
We are firmly convinced that
control of their economic destiny Wagner Act an
employer does not. there is an available
path to in¬
and as time goes on they may
The Labor Board and the Su¬
dustrial peace.
lose their freedom of
opportunity, preme Court have upheld the
But industrial peace cannot be
if the trend of concentration is right of an
employer to exercise an end in and unto itself.
It
not checked."
in full the right of free speech.
should
be
the
result
achieved
Mr. Berge made clear the real This includes the
right to discuss through the satisfaction of the
monopolistic dangers by pointing issues of trade unionism, to attack needs of
our people.
out:
unions,
their
objectives,
their
Fortunately for our nation, we
"The twin demands, 'hands off leaders hnd their
program.
have the material
nalizing labor.
when
concentrated
enormous
gaining
The Assistant Attorney General
Wendel Berge, in charge of the
.the countless suggestions for pe¬
J
the
being is not a
article of com¬
an
The
economic
sufficiently deep impres-
a
But
or
properly be enter¬
tained today regarding the fos¬
tering of monopolies within our
provide the basis for sustained
purchasing power and assure con¬
tinued high level of production
and profits for industry.
However, there are others who
reject this solution. The needs of
the people ,— which I have at¬
tempted to describe — have not
tsion.
:
human
a
Fear should
increases negotiated through bona
fide
collective
bargaining
will
.
of
merce."
contribution
a
industrial peace—is that
to
'■■■J,'/';.
THE COMMERCIAL & FINANCIAL CHRONICLE
New York 8, N. Y,
.
Corporation held on
January 9,1947, a dividend of 87#
cents per share was declared for the
first quarter of 1947 dn the out¬
standing 3#% Cumulative Pre¬
ferred Stock. A dividend of $3.00
per share on the outstanding Capi¬
tal Stock and
a
dividend likewise of
$3.00 per share on the outstand¬
ing Class A Capital Stock were de¬
clared payable January 30,1947 to
stockholders
of
close of business
,
■-
-
•
■
■
record
as
of the
January 18, 1947.
Edward J. Costello,
v
Treasurer
has declared
today the fol¬
lowing dividends:
$1.25
share for the first
per
quarter
of 1947
upon
the $5
Preferred Stock, payable March
15,
1947
record
at
to
stockholders of
the close of business
February 17, 1947.
$1.00
per
share
upon
the
Common Stock, payable March
15,
1947 to stockholders of
record
at
the close of business
February 17,1947.
The Goodyear Tire & Rubber Co.
By W. D. SHILTS. Secretary
Akron, Ohio, January 14, 1947.
\
The
Greatest
Name
,
in Rubber
•i'
THE COMMERCIAL & FINANCIAL
316
NYSE Board of Governors Scheduled to Vote
Permissive
on
Incorporation Amendments Today
our
ships; because of the far-reaching
legal and political implications of
incorporation; because of the pos¬
back
least the
proponents can't say they
didn't have ample opportunity to
present their side of the case.
interest
minute
last
Some
in
would
troduction
statements
but
referring
up
to the Chi¬
Stock Exchange which were
printed in the Maynard Commit¬
cago
tee's second pamphlet on
the sub¬
ject of permissive incorporation
and that Mr. Maynard had obliged
with a statement clarifying his
position.
commission
the
busi¬
brokerage
ness," the pamphlet states. When
dealing through a partnership, the
public is not only protected by
the resources of the member firm,
by all the outside assets of
each partner. In a service organi¬
zation such as the New York Stock
Exchange, the interest of the pub¬
lic should come first. During the
46
last
Stock Exchange
solvency rec¬
of 99.71%, a record far su¬
years,
members have had a
ord
perior to that of commercial firms
Bone of Contention
or
banks.
? The section of the pamphlet to
.
i
which Mr. - Day apparently ob¬
jected, according to the references
made in the press, follows: "The
experience of the Chicago Stock
Exchange offers an illuminating
example of what can happen: A
dangerous precedent was estab¬
Disunity
The
Feared
the
conclusion
would
be
to
be
must
the
that
purpose
•
-that it had
admit
never
maintain
organization,
any
that
-
amending the regulations was "one
of those half-truths," and that the
i
amendments had been changed to
permit the Mellon Securities Corp.
to join when it developed that
-the officers and directors owned
little stock but did actually con¬
trol the
operations of the corpora¬
tion.
;
however,
said that a telegram sent by Mr.
Day had only asked whether the
Mr. Maynard himself,
statement
in
the
Maynard Com¬
mittee
pamphlet referred to a par¬
ticular
corporation
which was
named. He revealed, too, that he
had sent a reply clarifying the po¬
sition of his committee on the
matter.
.a/
.
'
'
.
"••
Almost simultaneously, too, the
Maynard Committee itself issued
a -statement -pointing out in con¬
nection with its recently issued
•leaflet to New York Stock Ex¬
change members stating that the
•Chicago Stock Exchange invited
its corporate members to join, that
the applications of its corporate
members were passed on individ¬
ually by the appropriate commit¬
tee in the usual course of business
and that the relations of the Chi¬
Stock
character of
tion
institu¬
successful
a
benefit of compara¬
the
for
to
pamphlet published by
Ames'
Committee which fa¬
The
pamphlet also makes a
point of the fact that the word
"permissive" is itself a dangerous
"Great stress is laid
word.
the
under
that
fact
the
amendment
in
listed
leaflets.
our
be adopted.
"Reason
"With
need for
New York Stock
Exchange will increase — Volume
will grow—Markets will broaden
—New listings will be stimulated.
finest firms in the business.
the
retirement
capital in
Likewise
1—The value of mem¬
bership in the
will
2—The Amendments
Old
or
Domestic & Foreign
Securities
death
in
New Issues
business."
defense
of
the
third
"reason,"
the
pamphlet
states, "The control of the Ex¬
change would be directly over the
individual member
ber who would be
Some
our
allied
or
mem¬
M. S.WlEN & Co
ESTABLISHED
voting stock¬
a
holder of the member corporation.
Members
The individual voting
40
stockholder
would be obliged to agree in writ¬
ing to this control. The by-laws,
stock certificates and
ment between
tion
and
its
any
with
Exchange
its
will
The
door
unpredictable developments
ensue
In summary,
that
agree¬
V
have to be acceptable to the Ex¬
change. Thus the control of the
Exchange would be just as direct
and just as effective as the con¬
trol
it
now
partners of
over the general
member firm.
has
a
"Since each stockholder of any
class of stock in
a
poration must be approved by the
Board of Governors before he
comes a
148 State St., Boston
member cor¬
Tel. CAP. 042S
be¬
27.
stockholder; since all vot¬
ing stockholders must be actively
principally engaged in the
business and since the Amend¬
ments are so strict that the Board
"because
the
of
of
moral
and
public and
of
cannot
Governors
approve
Y. Telephone HAnover 2-7914
/
\
a
'a
member
obtain
primary purpose of such corpora¬
the
services
of
present
members to represent them. They
should not be excluded."
laws
which
can
be
of benefit
to
unless
corporation
There
or
dealer in securities.'
be
can
undesirable
no
more
people
interest
in:
Sewing Machine Co.
danger of
joining
trading
a
International Button Hole
tion is the transaction of business
broker
have
We
Current Market
the
19
Capital Stock $10
Exchange than there is today."
-
20
par
Dividend of $1.80 paid in 1946
Listed
Stock
Boston
Exchange
Teletype—NY 1-971
HAnover 2-0050
Ralph F. Carr & Co., Inc.
Firm Trading Markets
81
CUBAN SECURITIES
Government
Railroad
Milk Street, Boston 9, Mass.
Boston
New York
Hubbard 6442
Hanover 2-7913
Teletype
BS 328
Sugar
We
CML MASKS & r.O■ mc.
FOREIGN SECURITIES
*
Industrial Issues
SPECIALISTS
Inyestment Trust Issues
New York 4, N. Y.
50 Broad Street
Specialize in all
"...
Insurance and Bank Stocks
Public Utility Stocks and Bonds
TEXTILE SECURITIES
AFFILIATE: CARL MARKS & CO. Inc. CHICAGO
Securities with
a
New Eng. Market
Frederick C. Adams & Co.
't
*
Specialists in
New England Unlisted Securities
30 FEDERAL
Specializing in XJinlisted Securities
STREET, BOSTON 10
Established in
1922
Tel. HANcock 8715
Public
Teletype BS 22
'"Seaboard Fruit
Utility—Industrial—Real Estate
£
'Susquehanna Mills
of
for
RALSTON STEEL CAR CO.
ear.
Co., Inc.
'General Products Corp.
Cars
large volume
business
(freight
9, Mass.
Teletype BS 259
Bank—Insurance
Freight
long-term
Gerotor-May
Sunshine Consolidated
:
and
Lumber 6c Timber
U. S. Radiator Pfd.
:
the pamphlet states
financial value to the
indicates
HA. 2-8780
Teletype N. Y. 1-1397
Exchange and its member firms."
Shortage
Delhi Oil
Dealers Ass'n
Exchange PI., N. Y. S
member corpora¬
stockholders would
of these firms would buy seats or
Summary
points were made
in the pamphlet issued by the
Maynard Committee which the
1919
Security
Y.
a
to the detriment of the
tirely satisfactory.
other
N.
and those interests
open,
openly state now that the
proposed amendments do not go
far enough will be in a position
to press for further relaxation of
membership standards. As stated
(above), the Chicago Stock Ex¬
change admits corporations. Thei?
original amendment was tightly
drawn, but with the passage of
time it was liberalized, and'TOW
corporations with thousands of
shareholders are permitted to join.
It is this committee's opinion that
if the amendments are approved,
many
Reorganization
of principal capital partners, there
will be a
constantly increasing
amendments
We quote:
incorporation
should
corporate members have been en¬
Four
The
on
only the firms that elect to will
incorporate," the pamphlet states.
"True, but the admission of only
one
corporation will set in mo¬
tion the whole train of objections
will be
exist.
not
do
public than does the partners'
technically unlimited liability.
permissive
incorporation
gives what the Committee feels
are three reasons why in the opin¬
ion of the Committee the permis¬
vors
sive
assets
Exchange, in¬
cluding the requirement of a spe¬
cified ratio of liquid capital, af¬
fords far greater protection to the
Exchange."
The last
267
substantial
close control of the
the
page
is
liability
where
firms
outside
corporations
membership in the New York
Stock
see
safeguard in
financially
sound
of
case
member
on," the pamphlets also states in
part: "Congress has enacted tax
Word
contents
academic
purely
the
it
disadvantage of
In defense of the second "reas¬
A Dangerous
unlimited
confidence
a
as a
tively few firms."
under
orderly markets
"From the standpoint of public
who
f Maynard Statement
cago
in the
adopt this radical change
For detailed index of
conditions.
all
the industry to admit
Reason
business, oppose the amendments.
Thus the membership is asked to
Reserves
business.
the
extremely important to spe¬
cialist firms or others who must
are
second
been forced to
INDEX
of meeting the reasonable
of
needs
point questions the make
for
financially
stronger
advisability of having the mem¬ firms—Help
in
the raising of
bership of the Exchange made up capital—Facilitate the establish¬
of both corporations and partner¬
ment of reserves against the very
ships. "Disunity among the mem¬ real risks of our business. Reason
bers would result," the pamphlet
3—The Amendments restrict cor¬
lished by first admitting a cor¬ states, "for is it not logical to porate members to precisely the
assume
that problems will arise same
poration with 1,500 stockholders,
types of securities firms as
constitute
the
,and later a corporation with 3,000 in the future, the settlement of now
Exchange
stockholders.
Following this, a which will necessarily favor one Membership—Effective
controls
member
corporation of modest side or the other, with consequent are assured."
•size merged with a large invest¬ dissatisfaction to one group?"
In defense of the first "reason,"
The next point is put first in
ment banking house, and the Chi¬
the form of a
question, "Who the pamphlet states in part: "The
cago Stock Exchange was forced
to admit this large organization of would benefit by incorporation?" experience of the Boston, Phila¬
Replying to its own query, the delphia, Chicago and Los Angeles
.8,600 stockholders."
Exchanges
showed
conclusively
C
Mr. Day, a press report said, pamphlet goes on to say that
that, in every case, admitting cor¬
labeled this statement as false and "many firms * favoring permissive
porate
members
increased
the
detrimental to the Exchange and incorporation state that they will
There are
not'
incorporate
themselves. volume of business.
the corporate firm concerned. The
75-80% of the member firms out¬ more than 1,000 incorporated se¬
Chicago unit was reported in one
side of New York, supplying a curities firms in all parts of the
press account as having claimed
of the
large proportion of the Exchange's country including some
■
a
lost
reserves
against
be jeopardized by the in¬
of limited liability to
only
yesterday with publication in the
press of a report that James Day,
President of the Chicago Stock
Exchange, had asked Walter Maynard for an apology for certain
the question was stirred
y
worked
felt
corporation may build
capital and establish
out of earnings for- the
tax law
sibility of further lowering stand¬
ards
of
Exchange membership
once the initial step is taken; be¬
permissive
incorporation.
The
first of these is that the partner¬ cause some Exchanges permitting
members
have
con¬
ship form of organization provides corporate
better protection for the public. cluded that it is an unsatisfactory
"The high degree of public confi¬ arrangement—for these and other
dence enjoyed by member firms reasons cited in a previous folder,
Committee
industry. Under the corporate
the Stock Exchange community of
the unlimited liability of partner¬
(Continued from page 270)
members, opponents of the ques¬
tion declare, pointing out, how¬
ever, that if the Board should now
decide to kill the proposition at
Thursday, January 16, 1947,
CHRONICLE
Bonds, Preferred and Common Stocks
•
.
BOUGHT-SOLD-QUOTED
I.
f-
y.
;v •
*/'; ;'$£***'>/•:
I
'
Empire Steel Corp.
*Prospectus
manufacturers) i
„
i.
on
Request
•
Market about SV2
1946
•
W. T. BONN S CO.
,
120 Broadway, New
York 5
V
Bell Teletype NY 1-886
ftv
about 12 /
Inactive
Securities
>
REITZEL, INC.
REMER, MITCHELL
208 SOUTH LA SALLE ST.,
LERNER & CO.
•'
CHICAGO 4
WESTERN UNION TELEPRINTER "WUX"
.
•
PHONE RANDOLPH 3736
BELL SYSTEM TELETYPE CG-989
Hili, Thompson & Co., Inc.
! Markets and Situations for Dealers
^
;
10 Post Office
Telephone COrtlandt 7-0744
high
Circular Available:
Square, Boston 9, Mass.
Telephone Hubbard 1990.
Teletype Bs 69.
120 Broadway, New York 5
tel. REc tor
2-2020
y•<
Tele. NY 1-2660
@FedFRASER