Full text of Commercial and Financial Chronicle : January 17, 1946, Vol. 163, No. 4456, Section 2

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Fina I

^Edition

0VER 100 YEARS

I n 2 Sections - Section 2

Reg. XL S. Pat.;<)ffice

Volume 163

Number 4456

'

>^,/.

New York, N. Y., Thursday, January 17, 1946

'

:

Price 60 Cents

a

Copy

Aldiich Cites High

(JbservatidnS

Of Nation's Banks

By A. WILFRED MAY:

,\is-:a••;•*•£*..•>3./ >"$■

W;~.

.

.

•

•.;•*T--\v;w.vw.at.<*•'s*:•:

•

•

Chase Bank Chairman, in Annual
Report to Institution's Sharehold¬

The

dangerous practice of ameliorating public concern over a
government expenditure.by relating it to the past tremendous war
cost, is being continued by Administration officials.
For example,
Secretary Vinson employed this technique in "selling" the British
Loan at a meeting in Philadelphia's Town Hall last week. * The
Spcretary mitigated his admission that "three hnd three-quarter billion
dollars is
of

mentioning that the

ture

on

equals only two weeks of

sum

our

labors of
"fact-finding boards,'' we find it
Says Bank Earned $3.59 Per exceedingly difficult to imagine how any sane observer can
Share in 1945, Compared With expect a great deal from them, or, for that
matter, not be
impressed with the truth that to .label them, "fact-finding''
$3.01 in> Previous Year.
'

expendi¬

holders

war.

the loss of

A 1 d

murder,

is

foolish

of

the

millions

lost

more

as

Chase

play fast and loose with the English language, in a cer¬
sense the Board
sitting in. the General Motors case
could scarcely have done the
country a greater service than
it did by
affording convincing evidence of the folly and futil¬
ity of such techniques-—-convincing; that is, if the public can
be persuaded to consider these results in the cold
light of

York

tain

National
Jan.

on

8,

W.
i c h,

r

of

Board

of

reality.

Directors,
that

A

lending

In what sense,

stated

This is

because

New

l^hairmaa

the

something like contending that concern
human life, whether through
illness, accident, or

a

the

Winthrop

by rangingHhem against war costs is very bad.
Thus a request—-no
matter how unjustified—for an appropriation for ten million
dollars,
which presumably also is "a lot of do-re-mi" can be
glossed over by
regarding it as the equivalent of our previous outlay for "only" 48
over

of

of

Bank

war.

is to

Disciiisking the subject of loans

in. his annual report to the share¬

Wholly irrespective of whether the British Loan or any other
particular outlay is justified, the attempt to make them seem small

minutes of the

"the

otiicers

Perhaps, eventually the dollars of public debt may be
measured in terms of "mere" minutes of astronomical
Light Years.

with

touch

our

tomers

cus¬

con¬

cerning;^ pos¬
sible

Let the layman who is seeking an

.understanding of the British
Loan, not read the "explanations" being simultaneously given on

in

both sides of the Atlantic!

The transaction is being described here
by Administration Officials as a loan, while the British public is
being told that it is really a gift.
Far from acting as a Shylock, we

being represented to the British by Lord Keynes

Santa

Claus.

clusion of

Whereas here

is

made

as

a

<?f the business-like

such

tential

provisions

formally inserted

were

as a

meet

recital.

apparent,"

sought by

page 297)

Governinent Promotion

a

<

Assistant to the Secretary of Commerce

„

'

r

•

5

"

' 'I.-'/

5

fei

\ •VO

'

/'■*

'•

-

'

"

" "

,

been
•

£

v,l

.

Under

the Domestic Trade Bureaus From Those Concerned With

I

books

the

on

Some of

loans
at

discounts

an

the

year-end

have

$1,271,694,000,

were

(Continued

on

about

298)

page

One

■

Financial

■

From

•

''

press

which

these

gentle-

me n

were

ited

in September of last year a
substantial portion of the
Foreign

the

op¬

Economic Administration;

portunity f to;
give
you
a
picture
of;
how

The
FEA

rare

we

planning
to
organize
our; ' work

the

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

289

of

Paul

foreign
field and along with these a little
of the background thinking, that
plans

in

the

700

on

our

are

now

rolls, as

Commodore, New
v

York City,
vf.,;

•

\(Continued

Cos..

294

j

;;

v

,

State

• .<i

of

K,V'

;; *

Trade
289

nowmodity. Prices. Domestic Index.

300

Weekly• Carloadings.•.y..302
jiixgineeiing

Construction..

3in

Paperboard Industry Statistics..... 300
Weekly Lumber Movement.
303
Fertilizer Association Price Index,.,

299

Finished Steel Shipments in Dec..

on

page

296)

300

Moody's Daily Commodity Index.... 299
Weekly

Jami
f

Crude

Oil

Production:..... 302

Non-Ferrous Metals Market.....,...

303

Weekly Electric Output,........

299

-1, >*■ Latest

.

.

...

Summary of Copper Statistics 301

not

leader- of

this

visit

of Mr.

the

British

Commons.

the

writer doesn't be¬

thing to sell.

He came over; as
he said, to look over as much of

the geography of Canada as pos¬
sible, and then he couldn't escape

be

see

what

We

set-up,

was

are

going

on.

amazed that Mr,

rison

the

The Overseas Writers, a

! We

billed

about the pa¬
rade of Brit¬

and
Carlisle Barfferon

have

been

gathering
him

thought

for

Mor¬
naive.:

fairly ex¬
journalists,

of

cocktail

a

this

so

was

an

party

accom¬

plishment of; sorts.: The National
Club, not so exclusive, usu¬
ally having around 400 at' its
luncheon, got busy and booked
Mr. Morrison for a luncheon, an
Press

I who

have recently come to our
and God knows, we

midst,
haven't; any¬

thing against them.
Nevertheless, let

any

Britisher

other foreigner come over
here trying to sell his wares, and
there
is
a
rivalry among the

"off-the-record" affair.

Well,

or any

newspapermen

could

clusive

been

thinking

ishers

;

running down to our; country to

freedom V
sap.

mind

our

lieve that Mr. Morrison had any¬

Washin gton

have

Review.;,...,.......i.

wuwiuy

should

Morrison,

Frankly,

called, in the
light of
the
press

•

Weekly Steel Review,...,...v.1. 298

the

8,4946.

and Trust

Weekly Coal and Coke Output >. v.,. 301

*An address

fore

.




of

by Mr. Paul- be¬
Commerce and Industry
Association of New York, Hotel

f
Arthur

out¬

our

Commerce, there

in 4

the fa Depart¬

line

liquidation

been: continued and of
1,500 people transferred from

only about

■

of

Banks

Trading on New York Exchanges... 301
NYSE Odd-Lot Trading..
301
?

General

has

FEA to

ment of Com¬
merce, an

process

About

Labor

the

recall

we

Herbert

seeking
289

Moody's Bond Prices and Yields.... 299
Moody's Common Stock Yields..... 299
Items

when

purportedly

i,,.,...

...,.

particularly to

comes:

situation

The

first.

to

wares

free¬

the

289

.

take

er

Washington Ahead of the

Observations

can't
won¬

Page

Situation

News

editors

dom, of.. the

Regular Features
;

have been running about the world with
of establishing freedom of the press.
When they
back their fellow editors have gone eagerly to them and
our

dering wheth¬

Editorial

.

to

come

escape

very

want

.

asked, not whether they had established freedom of the press, but
Whether they had met Stalin; what did he look like, and did they
have a good time in Bulgaria.

22%

INDEX

Enlightened Credit and Cooperative Trade

pleased to have been given this opportunity by the
Commerce and -Industry Association of New? York; to talk to such, a
representative
^
has gone on behind the program,
gathering
of mi&m
the foreign
f The end qf the war has brought
tradecom with it many changes in the or¬
m u n i t y
of
ganization of the Government in
New York. ;I;
Washington.
War agehcies are
am
not going
being rapidly dissolved or merged
with the old line
to "■ speak fat
departments. As
length this af¬
part of this process of change, the
ternoon, but I
Department of Commerce inher¬
do

page 292)

avowed purpose

and

GENERAL CONTENTS

am

on

a strong
background."
the same heading Mr.

total

"The;

Policy.

■

(Continued

years

Aldrich stated:

Says Foreign Trade Activities Will Be Apportioned
Between a Service Division and a Policy Division.
Latter Will
Deaf Witb Exporf Controls, Wpjrld Trade Policies and International
Trade Organizations.
Points Out Trend of Industrialization in
Backward Countries and Holds This Movement Should Be Fos¬
an

sources.

a

field of lend¬

new

financial

by

see

since its inception and has
employing
a
substantial

and

tered and Assisted

we

trend

a
ten

about

loans to borrowers with

Department Official Outlines the Changes in Organization
Functioning of His Department and Praises the Plan to Sep¬

Foreign Trade.

;

started

Commerce

arate

But

amount of funds in medium-term

f\

^

. . For our part, we have been unable to dis¬
material and relevant "fact": that the Board has

one

"found"—except from previously published

form of term loans,
period of several years

active in this

ing

By ARTHUR PAUL*
:

daily press.

ago. It represents a major change
in commercial banking practice."
Mr.
Aldrich
added
that
"the
Chase National Bank has been

Of International Trade
.

the

cover

many

accentuates

.

some
length, but all this has been constantly before the
public, and much of it has been blazoned in the headlines of

great deal that has nothing to do with
and repayable in serial install¬
"fact-finding," which, however, may presently be foisted
ments.
This
development conupon the public as "objective,or "impartial findings," or
firms
and
covering

which

;

said

the

in

duty
disputants

at
is

It

large in¬
dustrial companies will be util¬
ized

Board's

It also appears to have felt under some sort of
to imitate the courts in
recording the claims of the

Mr. Aldrich "that the bulk, of the
credits,

capital in-

on

well be doubted whether the others will read the

bor¬

discussion.

terest, is it necessary for us to*be mistaken?" asked Keynes of his
fellow Lords.
"The balm and sweet
simplicity of no per cent is not
admitted, but we are not asked to pay interest except in conditions
where we can reasonably well afford to do so, and the

(Continued

available to

rowing is cur¬
rently
under

gesture to appease Congress.. ,"If the Americans have tried
criticism at home by making the terms look a
little less
liberal than they really are, so as to
preserve the principle of in¬
to

their

amount of po¬

in¬

to consult the more • serious
day, which, however, was arid is
all those who are really interested—-and it
may

economic literature of the

postwar plans,
a
large

benign

sufficiently interested

were

connection

and

interest, the chief British negotiator in his apologia to the

House of Lords stated that

only

much

for

credit

with

-

are

uses

bank

"Fact-Firfding,? Report?

first of all, is this a "fact-finding" report?
One may well wonder.
To be sure, it recites at long length
facts already- available to every" one who reads the news¬
papers.
It does indeed rather inadequately cite certain
data here and there, which were available
only to those who

in

are

close

war

casualties.

,

Now that the public has had an
opportunity to taste of

the fruit of the

ers;

lot of do-re-mi in anybody's pocketbook" with the
opiate

a

The Financial

Quality of Assets

in

Washington as

1 to
whicn. grqup ho should

sell his

at

that 'luncheon,

Mr.

Morrison told the assemblage in a
"between you and me" style, that

Great
v

Britain

(Continued

and
on

the
page

United

304)

•

THE COMMERCIAL &

290

of ; the
devel¬

payments since the end
than.expected, and an upturn has

"The decline in income

has been less

war

oped earlier thah^hticlpated
r;
"V-J -Day did not if righten consumers
purchases. Rath e r, they
continued to 'buy; and;^so'
;

an

aetive demand

for labor in

trade, services

and civilian

production. We

maintain

Thursday, January 17, 1946

■'re-

NYSE Gilegl for Treas.

How!

We Don't Know

FINANCIAL CHRONICLE

*

*

Loan Drive Work
On Jan. 8 Emil Schram,

n.

into curtailing

Presi¬

dent of the New York Stock Ex¬

change, called

on

President Tru«

The level of industrial output last week varied onlV sjightly:from

;; ;

man;1 the United Press reported that of the previous week with strikes and. rW'materM shortages
from Washington, to assure Mr. continuing to hamper manufacturing processes. New orders as was
Truman that, no inflationary trend .the case in past weeks showed further expansion with steel users
existed in the stock market^Later applying great pressure on the steel industry for delivery of orders
Mr J Schram was presented by Sec before the scheduled strike.
In the automotive field produc-^retary Vinson -of the Tieasury
with a citation for the Work"'6f tlon of trucks was speeded and iiation^/* ?but
sucft;;'lhh: increase;
the Exchange, in Treasury »loan slight changes made in pre-war would have no bearing upon how
much of a wage increase could be
drives.
Mr. Vinson praised Ex¬
models. An increase "-In the pro¬
because
the
change members for their cooper¬ duction of stoves and refrigera¬ granted
industry
ation in seven war loan drives as tors was also noted. Current esti¬ plans to ask
OP A for another
well'&s the - Victory loan," ' The mates of shoe factory output re¬ price adjustment to cover any
citation was accepted in Mr. Vin¬ veal a very high level with the wage increase.
son's office by Mr. Schram and easing of the labor supply situa-?
There is belief in the industry
John Coleman, Chairman, of the tion. Jewelry manufacturers also that the OPA steel
price adjust¬
Board of Governors of the Ex^» report sustained production levels ment which is
expected to be
ih
their
field.
change. " The citation read :?
"
granted within- a week or so will
"The 'United
States
Treasury
In a study of production trends fall far short of the industry's $7
,

biggest Christmas
business
in
history, yet
these sales included only a
trickle .of consumer's dur¬
the

had

goods, for which there
huge demand.
"It is time to give inten¬

able

is

a

consideration

sive

the

to

r

problem of
maintaining
high employment- once it
There

has been achieved,

is

nothing in our recent ex¬
perience tp suggest that this

Walter D. Fuller

Paul

Hoffman

G.

problem has been solved or that we know how to solve it,
on the other hand, given the proper teamwork, there are
no problems which the American economic system should
be unable to solve, as shown by its war production record."
—Paul G. Hoffman and Walter D. Fuller.

but

What Messrs., Hoffman and

Fuller refer to

as

"maintain¬

ing high employment" is, in practical effect, what is often
termed controlling or, better still, eliminating the "business
They are on strong ground when they say that "there is
frothing in our recent experience to suggest .
.
.
that
know how", to reach any such end — certainly not by
of

"managed economy."

a

fact might well be
to come.

General realization of this simple

-

salvation in the months and years

our

:

salesmen to our local war finance

to

committees."

cycle."

means

Department gratefully ackhowl- appearing in a current issue of a ton demand. It is expected, how¬
edges the patriotic services of the The Cleveland Trust Company's ever, that even though a base
New York Stock Exchange in the
BusinessBulletin,
Brig.
Gen. price averaging around $2 j to
seven War Loan drives of World
Leonard P. Ayres, Vice-President, $2.50 a ton is granted, adjustments
War II and in the Victory Loan
points ouf that industrial produc¬ will be made on steel extras
of 1945."
tion stopped its decline and made which would result in a greater
The Associated Press Washing¬ a
vigorous recovery in November net price return.
ton advices Jan. 8 stated that in last
Pressure from customers anx¬
year based upon preliminary
a letter to Mr. Schram, read at
data at. the time of his survey. ious to secure
delivery before a
the ceremony,
Mr. Vinson de¬ The index of physical volume of steel strike occurs in order
to
clared that "your industry utilized industrial
production as complied build up inventories reached un¬
its professional selling skill by not
by the bank reflects a. 21.4% rise usual proportions the past week.
only sponsoring original radio and above the computed normal level These
attempt^ were useless, since
newspaper advertisements but by in
July, In August the index de¬ the industry, already far behind
organizing bond selling teams and clined to 11,0% above normal, in on
deliveries, was unable to give
furnishing thousands of volunteer September1 to 10.5, and in October
any better service than has been

Hope British Trade Policies Will
Besipe Less Discriminatory

6.8%.

Preliminary figures for

November, according to the bank,
indicate an upturn of 13.3% above
normal, thus cancelling a large
portion of the decline following
V-J Day.
X /
|f

Fronj the Associated Press we
also quote:
The letter

expressed the hope
that "the Ex¬
change will continue to utilize itfc
A
comparison of November's
educational and advertising facil¬
.figures with those for October re¬
ities to encourage our citizens- to veal that the
recovery in our pro¬
hold the bonds they own and -to duction occurred in
practically all
continue to purchase them regu¬ lines of
industry with the in¬
larly under the payroll savings creases varying in amounjt. Bitum¬
plan§ or.through other outlets;"
inous coal was foremost in the
Inr the
Wall Street Journal" of advance because of the ending of

of

the. Treasury

Jan. 9 it

was

.

stated:

strike and the

the

Reached in New York last

return to full

night production, thus placing the in'

the case for the last few months*

Most

notable

development

strikebound
consuming
industries was notification to steel

among

suppliers by General Motors that
shipments
to
holding
points
scheduled for

January should be

halted.

The

did

affebtequally

not

pliers
One

and

mill

action

all

been

sup¬

shipment^ halted in¬

definitely* but that
had

all

subsidiaries.

that Chevrolet

reports

had ordered

apparently

GM

stop-order

no

received''from

other

manufacturing subsidiaries.
eral

Motors

Gen-*
believed to

is

now

held its monthly and asked to amplify his. states dex close to the high level it en¬ haye steel stocks on hand ade¬
rduna-caole conference on Jan. 9 at the Hotel Pennsylvania, in New ment Mr. Schram said: "The mar¬ joyed in the month of peak war
quate at least 60 full days scale
York, foreign traders voiced the hope that the Anglo-American credit ket in itself is not inflationary. It production. Other important gains
operation when manufacturing is
agreement will result in elimination of discriminatory practices, will, of course, reflect the trends were registered in the outputs of resumed.
steel, gasoline, beehive coke, and
which, it is alleged, still prevail against American foreign traders whatever they may be."
Some mills have not been de¬
rneat packing.
seeking to operate in British markets.; The New York "Times" of
livering full tonnages allowed
Jan,
10, reporting this,further*^
f Concluding the production phase under GM
quotas in the belief
In Trinidad alsoK another mem¬
Heads Board of
stated:
s
i pf Brig. Gen. Leonard P. Ayres'
that the steel should be diverted
;

When the Foreign Credit Interchange Bureau

,£.

ment, by the end; of this year
ee, but
sterling is to be made free,
trade with India and Trinidad

;

continues

at

virtual' standstill

a

despite apparent absence«of that
factor in tnose areas, it was as¬
serted.
'"Apparently there is a determinded efort to keep us out of

markets

empire

whenever goods

the em¬
pire, regardless of .exchange con¬
can

be^ obtained' within

siderations,": one trade stated. "In
India the policy is to refuse to is¬
sue
an
import license for any
commodity which can be obtained
within the. sterling area."
The
arose

discussion of the situation

following the question of a
asked

who

member

whether his

experience iruIndia was general.
.

asked to supply preliminary trade
{ information of a type "one doesn't
close friend." It was
the member said, that
the information was sought large¬
usually tell

ly to provide competitive advan¬
tages.
The consensus of the meeting
was that each case involving ap¬

parent discrimination

should be
brought, to the attention of the
State

Department.
L. L. Horch, Director of the
New York Regional Office of the
Department of Commerce, who
responded to a number of ques¬
tions on export control, assured
the traders that no change in the

as

if

It looks

Delhi.

in New

completely stymied."

we are

*"We have had a similar

experi¬

in Trinidad," another

ence

mem¬

"There we were
banned solely on the grounds that
dollars were not available.
But
we
know that is just a pretext
ber

explained.

there

since

soldiers

have

and

been

sailors

so

there

many

and a

supply of dollars must be

large

available.

As

a

result of our com¬

plaints, three separate investiga¬
were made by the State De¬

tions

partment and I aim glad to report
that something is coming out of
it."

'

Although conceding that trade
with Barbadoes, British Honduras
and British Guiana was satisfac¬
tory,

the

situation

"strange"

member
was

said

all

that the

the

more

therefore* in Trinidad.




•

.

William

Nardin,
who has retired from the office
succeed

to

T.

years' service. Douglas
Brooks, of Memphis, Tenn., has

after nine
W.

been
man.

Deputy Chair¬
Mr. Dearmont was recently

reappointed

appointed a Class C director of
the bank.. He is. Chief Counsel for
Trusteed Missouri-Pacific, Lines,
St. Louis.

St.

of

:

Louis

Bank,

have

been

ap¬

pointed directors of the branches
of the Federal Reserve Bank:

Living Costs Rise in
,

Living

costs

of

wage

.•

earners

and lower-salaried clerical work¬
ers

in industrial cities resumed

a

general rise in November, for the
first time since' the end of the
the National Industrial Con¬
ference Board reported on Jam 17.
The Conference Board said the

war,

cost

of

living

climbed

in

during

58

of

63

November
industrial

cities surveyed each month. Three
cities showed no change, while

Bluff, Ark.

Branch

Re¬

a

rise

of

1.9%, followed

by Los

Angeles with an increase of .0,9%,
and
a

Bridgeport Connecticut, with

climb of 0.8%. New Orleans and

Co;,• • Mem-phis, /and~ Noriieef

dustrial cities of the 63
to record declines.

in¬

surveyed

President

First

National

in Washington.

Each branch has

directors,; four of whom

President Truman's remarks to

the effect that there would be a

"slight"

The Board of Directors of the
Federal' Reserve Bank consists of
nine "members, six of whom are
chosen by the member banks and
three by the Board of Governors
seven

Houston, Texas, were the only

.

ident;^Stf attb^

cities.

with

Cecil C.

Geo. O. $2 a day increase but subsequently
Boomer; President, Girdler Cor¬ indicated that a: lower amount
would be considered. The ques¬
poration, Louisville, and Lee L.
Persise< President of the State tion of steel price increases the
past week while hearing a conclu-r
Bank of Salem, led.
sion was not necessarily tied in
Memphis Branch — Leslie M.
with any possible postponement of
Stratton, Jr., Executive Vice-Pres¬
the steel .strike.
■Louisville

Turner,

Minnesota,

Industry?—Therp were no

Basically the steel union set the
strike to enforce its. demand for a

—

Cox, farmer, Stuttgart, Ark., and
A, Gordon, Vice-President,
Simmons
National
Bank,
Pine

Bank of Memphis.

Duiutn,

Steel

definite indications at mid-week
that the main bout in the form of
an industrywide steel strike would
hot take olace this week* accord¬

Chas.

slight declines were noted in two

corded the greatest increase,

and

production is going forward
at full capacity. Particularly true
is this of the non-durable goods
industries where in most cases the
change-over to peacetime produc¬
tion is not as difficult as it is in
the;durable goods fields, adding,
that those still most depressed are
to be found in the ship, airplane,
machinery and chemical lines.

that

ing to The Iron Age, national
metalworking paper; in it review
of the steel trade dated Jan. 9.

Little Rock Branch

Industrial Cities in; Nov.

end,' occurred. This would indi¬
cate, the bulletin points out that
the reconversion process in those
industries has been completed

Federal Reserve Bank of St. Louis,

time.

classification

group

j those of July, before the war's

nated^Russel L. Dearmont, St.
Louis, as Chairman of the Board
and Federal Reserve Agent of the

The following, it is announced
by C. M. Stewart, Secretary .of the

cannot be received from the Government

Federal Reserve System has desig¬

Argentina is contemplated at this

country

some industries an increase
production levels higher than

that in

The Board of Governors of the I in

a

his opinion,

study, the Business Bulletin notes,

St. Louis Reserve Bank

.

"We have constant requests for

prices and delivery in India," he
saia, "but always the same story
comes back—that import* licenses
1

occasions he was

ber said, on two

the terms of the agree-

Under

increase

steel

in

prices

fourth quar¬

after steel company

earnings are analyzed gave lit¬
solace to the steel industry.
Such remarks left the steel price

ter
tle

situation practically

where it was

than a month ago, the mag¬
azine noted.

more

are

A urice adjustment

has been de¬

appointed by the Federal Reserve
Bank and there by the Board of

manded by

Governors!

requisite for furtner wage ncfeo-

the industry as a pre¬

elsewhere
used

so

that

it

could

-

be

immediately.

The present
GM stop-order oh deliveries will
help some other steel consumers
but in the overall picture it will
not go far towards easing short¬
ages,.

'

The American Iron and Steel
Institute announced on Monday

of this week the opening rate of
steel

companies

having

94%

of;

the steel capacity of the industry*
will be 76.5 % of capacity for the:
week beginning Jan. 14, compared!
with 82.0%
one

week ago, 83.0%.

one

month

and 92.2% oneThis represents a de¬
crease of 5.5 points or 6.7% froms
that of the previous week.
ago

year ago.

This

week's

operating

equivalent, to

rate

is*,

1,401,200

tons of
steel
ingots and
castings, andl
compares with 1,502,000 tons one?
,

week

ago,
1,520,300
tons
month ago and 1,688,400 tons
year ago.

one:

onei

*

Electric Production

—

The Edi-

sonElectric

Institute reports that
the output of electricity increased
to

approximately 3,845,000 kwh..
figure)
in
the?
1946 from 3,~
758,942,000 kwh. in the preceding;
week. Output for the week ended

(preliminary

week ended Jan. 5,

Jan.

5, 1946, however, was 13.2%
below that for the
corresponding;
weekly period

one year ago,

Consolidated Edison Co. of New
York
reports System output of

184,400,000

kwh.
in
the
week
6,
1946, v comparing
With 186,000,000 kwh. for the cor¬
responding week of 1945, or a
decrease of 0.9%.
Local distri¬

ended

Jan.

bution of electricity amounted to

177,200,000

178,600 000

kwh., compared with
kwh. for the corre-

(Continued

on page

296)

Volume 163

Number 4456

THE COMMERCIAL

Than Those

Presiding at the annual meeting of the stockholders of the Man¬

Through

the bank's stock

on

was

increased from $2 to

$2.40

Net operating earnings for the;year 1945 amounted to

a

moderate price field in 1946 was
expected to get under way by Jan.
15, on which date home builders

$10,107,440.77

$4.90 a share on tne 2,062*500'?
outstanding at the present increased earnings from, interest
time after current operating ex¬
on
securities and loans.' On- the
penses,
dividends
on
preferred other hand, the income tax pn our
stock and reserve set up out of earnings was $2,700,100 more than
earnings,-Compared to net operat¬ for the previous year and other
shares

who, qualify were to be assigned
a socalled "H.H."
rating for scarce
materials.

400,000

ate increase in

amount to

•

'

$1131137,361. This

ably to

com¬

our

would

program

be

built

next

year,

Small/ chief of the Civil¬

ian Production Administration
dered that dwellings

or¬

000

or

less be offered first to vet¬

ih keeping

erans; top rent on such

deposits is

to/be $80

per

The CPA

month.

Head; according to the

account given by the

operating costs. This Press in

dwellings

"Associated

In

■

his

reply

to

the

Cardinals,'

traditional

Pease

Christmas

Pope Pius XII condemned totalitarianism

greeting,

as a
source
of war, and
appealed to the world to teturn to the
principles of Christianity, the
Associated Press reported from Vatican
City, Dec. 24.
Noting that
this was the first time in six
years that Christmas was being cele¬
brated at peace, the Pope added that it was"
,

not, however/a real
peace. Urging return to Christian
principles, he declared: "Let it not I protect and safeguard the future

~

be said that this is not realism in

of

politics.

pretensions

their

children

own

Experience should have
taught all that the policy guided
by eternal truths and the laws of

totalitarianism

God is the most real and
tangible

State

of

costing $10,-

appreciably more; and salary in¬
creases have also added consider¬

.

the

John D.

"interest paid; Fed¬

eral Deposit Insurance,
with the growth of our

Estimating thai/ at least

homes

under

ing earnings of $8;011-,681-or.%$4.86 i taxes totaled $191,400 more; the
a'share shown for the year 1944 oh ^substantial increase, in. thrift de^
the 1,649,922 shares then outstand- posits has- produced a proportion¬

ing. Of the total earned in 1945,
.$4,124,954 was paid in dividends
to common stockholders. Capital
funds, which include capital stock,
/surplus and undivided profits, nojy

system of priorities

building materials, the

p to g r am for
dwelling construction in the

new

share.

lessage of Pope Pius Hits
totalitarianism as Foremost Threat to

I

Administration's

or

;

a

for critical

Gibson,
President* stated in. his annual report that during the; year 1945 the
hank's capital funds had increased by $19,524,990.90. The annual

291

Yulelitfe

Program

of Last Year For Vets Aft&ioBfinced

ufacturers Trust Company of New York, on Jan. 9, Harvey D.

dividend

FINANCIAL CHRONICLE

Small Homes

Operating Earnings of lannfaclurers Trust 6o.
Greater

&

policies."
The

Pontiff

ers,

the Associated

ued

in

its

Press contin¬

dispatch, and asserted

that in order

to

of

against the

policy; of
against the arbitrary
of
the
powerful

force

every

"3. The force of the totalitarian

>

appealed for hu¬
treatment of political prison¬

mane

brute

establish

of collaboration among

basis

a

nations, it

state.

The

whole

globe, reddened

surface

with

the

of

the

blood¬

shed in these terrible years, cries
aloud the tyranny of such a state,
"The fabric of peace would rest
on

tottering and ever-threaten¬

a

its

Washington dispatch was-necessary that an attempt "to ing base if' an end were not put
pares with $93,612,370 as of the Has all resulted in an increase of of Dec.
21, outlined a new regui create the*pmmpotency of money to
such:;; totalitarianism,
which
close of 1944, thus accounting for $4,945,000 in operating expense. : / lation
restoring ten kinds of critii be abandoned, everywhere,",; •,
lowers man to the state of a mere
the increase of $19,524,990.90.
"As. has been our custom for cally scarce building materials td
/ Iji the Associated Press accounts pawn in the game of politics, at
Mr. Gibson explained to stock¬ many years, net operating earn¬ a priority system, to be allocated it
was also stated:
cipher in economic calculations.
holders the readjustment of capi- ings, do not include recoveries on by application to the 52 field of¬
Noting that many prisoners of With a stroke of* the pen it
tal made in June last whereby items heretofore charged off or fices of the federal
Housing Ad¬ war still were not repatriated, changes the frontiers of states; by
■412,500 additional common shares net. profits from, the purchase or ministration.
despite the end of the; war, the a peremptory decision it deprives
sale of securities or from, the sale
rwere issued and whereby undi¬
Ratings will Jpe awarded, the Pontiff declared that repatriation a people's economy—always part
vided profits were increased by of miscellaneous items above book
Associated Press stated/ either to was being held up in some cases of its life as a nation—of its nat¬
Nor
do, they
include individual veterans who
transferring
$10,000,000
f r o m values.
ural
outlets;
with
ill-concealed
wish to without just cause.
available
unallocated
valuation charge-offs, settlement of claims, build for
"Totalitarianism is incompati¬ cruelty it, too, drives millions of
themselves, or to build¬
losses
on
assets
xeserves which were no longer re¬
sold!, or additional
men,
hundreds
of
thousands
of
ble
with true and sane democ¬
ers/desiring to erect one or more
quired for the purposes for which reserves set up. During 1945 net buildings.,
Housing already un¬ racy," the Pope said. "Like a families, in the most squalid mis¬
profits
from
the
sale
of
securities
they were originally established,
der, way may be, brought within dangerous 'germ, it poisons the ery, from their homes and lands,
the reason for the readjustment amounted to $3,777,327.43; miscel¬
the program, Small said, if it meets community of nations and rend¬ tears then!'out by the roots and
Toeing to provide funds sufficient laneous recoveries and recoveries the
$10,000 price limit, is offered ers it incapable of guaranteeing wrenches them from a civilization
to
retire
outstanding preferred from items heretofore charged off
•

■

stock completely and in addition
to increase somewhat total capital

funds.

The

412,500

shares authorized

additional
offered at

were

$58 per share to stockholders, who
subscribed for 310,800 shares. The

xemaining

101,700 shares were
taken up by a group of under¬
writers at the same price an<j
were promptly disposed of to the
public &t $53.50 per share. The
proceeds thus obtained amounted
to $23,925,000, less underwriting
/fees of $358,291.50, or a net of
^23,566,708,50. The retirement of
the preferred stock at the redemp¬
tion price of $50 per share re¬
quired $19,274,250 of this amount.
Mr. Gibson stated that the 2,062,500 shares of one class of capital
stock

now

outstanding

as a

result

of the
•

capital changes have a par
$20 a share and a book
value on Dec. 31,1945, not includ¬
value of

sets

disposed of at an aggre¬
gate net gain of $5,349.12. All of
these non-recurring amounts, less
the net taxes payable on them,
were credited to Reserve
accounts;,
were

tion.

//'

.

,,:v./J

All

applicants ; for priorities
in obtaining materials

assistance

must agree to make the

housing
transactions during 1945, there available to veterans during the
period
of
construction
and
for
were
substantial savings of in¬
thirty days thereafter.
At the!
come taxes. In order that these
non-recurring tax savings may conclusion of that period it may
not influence our earnings state¬ be sold or rented to a non*veterap
"As

result of some of these

a

to

have

a

or rental

and face brick, clay
pipe, structural tile, gypsum
board, gypsum lath, cast iron soil
pipe and fittings, cast iron radia¬
tion equipment, bath tubs, lumber

and millwork.
Here

Yorker, where it had long been
known

principal

are

provisions

of the new regulation drawn up
at the direction of: President Tru¬
man in a move to ease the acute

financial stake.

The "Times" added:

of $44,60 per share for the 1,649,S22 shares which were outstand¬

the entire equity in the hotel at Housing shortage:
i. Applicants for the so-called
Eighth Avenue and Thirty-fourth
Street, he said in answer to a "H.H." ratings must submit speci¬
question by a stockholder. It also fications on homes to be built
under
owns all but a small portion of the
/the program, along with

In this report Mr. Gibson noted

that at the end of 1945, gross de¬

posits, including the United States
War Loan Deposits of $477,892,000,
totaled $2,555,886,000. Eliminating
the deposits of the U. S. Govern¬
ment, the gain in normal deposits
for

the year

amounted to $387,-

*

"The trust company now owns

Huron Corporation, a former af¬

the price or rental at which the
dwelling will be made available
to veterans of World War II, in¬

filiate.

cluding

second mortgage on
the

balance

of

the property,

which belongs to

FHA

"The Manufacturers' interest in

merchant
be

mUst

The

seamen.

satisfied

that

the

hotel,; which is carried at $1, proposed price or rent is "reason¬
479,000. Commercial, Thrift and
and originally at $13,000,000, is ably related to the cost of the pro¬
Special Checking accounts now
worth a 'great deal more money' posed accommodations."
total
approximately 668,000
in
8. Builders
than was invested originally, but
must
show
they
number. At the end of 1945, the
the bank has no present intention will be ready to start construc¬
bank's published resources for the
of selling its interest, Mr. Gibson tion Within sixty days.
They also
iirst time, aggregated over two
said. A first mortgage of $6,500,- must demonstrate that they have
$nd a half billion dollars amount¬
000 on the property is owned by effective control of the land, that
ing tb $2,693,184,469.
the Equitable Life Assurance So¬ financing - is
assured and
that
With resect to loans Mr. Gibson
ciety of the United States, he re¬ arrangements have been made for
stated that the bank had adjusted vealed.
local
building / permits,
utility
its policies to meet new loan con¬
The proposed annual pension services and the like. If construc¬
ditions arising out of the end of
tion
has
not
been
started
within
for employes was approved at the
•the war, directing attention to
Jan. 10 meeting of the stockhold¬ sixty days, the H. H. rating be¬
small as well as large business
comes void and. a new
ers;
application
loans with a special department to
must be filed.,
the

-

i

handle G. I. loans—a considerable
number of which have already

been made, He reported a

marked

improvement already taking place
in the demand for

industrial cred¬

it* commodity loans, accounts re¬
ceivable loans and personal loans,
hnd he further announced plans
for greatly expanding activities in
financing the retail purchase of
Automobiles, dealing direct with
the consumer. The report shows
current operating earnings of $34,-;
550,725 in 1945 compared with

-$29,440,405 in 1944. In referring
to the bank's earnings Mr. Gib¬
son

said:

3. In the

Mail Service to Austria

erans

Postmaster Albert Goldman an¬
nounced on Dec. 31 that effective

2, letters not exceeding one
ounce in weight and nonillustrated post cards, which may be on
business as well as personal or f am*
ily matters but limited to an ex¬
change of information and ascer¬
tainment

cepted for

of

facts, would

be

The

below

cents

for

each

letter

and

> 4.

ac¬

earnings for the year

just, passed are $5,110,300 higher
than for 1944, due very largely jo

tration,

parcel post services

5.

are not avail-

able at this time.

maximum
-

sales

'

-

price
1

^

can

be

shown

may

to, dormitories

or

as

given in the Asso¬

New York "Times"
"1. The

were:

present hour calls im¬

periously]^forcoUabofatidn, good¬

competition must be
kept out of political and economic
debates and decisions. "Who can

say,"

base his claim on moral princi¬
ples, respect for those inviolable
natural rights which remain valid

for

even

those

who

have

sur¬

rendered

.unconditionally to the
victor. One who. asks for security
in the future should not; forget
that its only true guarantee lies
in one's own internal force-—that

is,

in;

safeguarding^ the family*
children,, labor, in fraternal charr
ity, the outlawing of all hate, all
persecution/ all unjust vexation of
hbnest-citizens* in loyal concord
between State and State/ between
people and people.

shaken

the

electorate

like

reeds

by the wind. Let due heed

be paid to the true and over-*
whelming majority of men, made

of those who live honestly and

peacefully by; their own labor in

"

■:

"And yet by the Divine Right it
is hot the will or the power of

fortuitious and unstable vested in¬

terests, but

man

in the framework

of the

family and of society, who
by his labor is lord of the world.

Consequently

this totalitarianism

fails by what is the only measure

df^pogress, namely the progres¬
creation" of

sive

ever

more

ample

and better conditions in public life
to
ensure
that the family can

menace

of

'The

war.

future

peace
structure
outlawing from the world
aggressive use of force,
every war of aggression.
Who
could not greet such an intention
enthusiastically, especially in its

aims at

every

effective realization?

"But if this is to be something
than a beautiful gesture,

more

all

oppression and all arbitrary

action

from

within

and

without

must be banned.

"In

the

of

face

this

accepted
state; of affairs, there remains but /
one solution: a return to God and
to

"The

forces

which brought about the
war,: the clearer it becomes that
tbey were the heirs, the bearers
and continuers of

essential

errors

element

of which
was

the'

neglect,

overthrow, denial and
contempt of Christian thought
and principles.
/
"IX, then, the root of the evil lies
here,. there is but one remedy;

their own family circle, and who
desire to do the will of God. In

to go back to the order fixed by
G6d also in relations between the

ad¬
the

states and peoples; to go back to
a
real
Christianity within the

of the

state and among states. And let it
not be said that, this is not realism

disputes for

earth,

even,

frontiers
the

more

and

treasure

if not

of

necessity

in

venture which cannot be entered

politics.
Experience • should
taught all that the policy
guided by eternal truths and the

without the risk of causing an
of death and ruins.

tangible of policies. Realistic poli¬

and

a

are

at

on

priori unjust in themselves,
least

always

dangerous

a

majority of good fathers

of families "want to

have

laws of God is the most real and

ticians

who

up ..only

think

ruins,

-

otherwise
—

r

-t4;•

I

their eyes,

The vast

■

.

the

of

and mothers

f .v

,

will

erans.

f

•.

con¬

welfare

and

race.

the order established by Him.
more the veil is lifted from
the. origin and, increase of those

accumulation

:

policy

a

dignity

''2. To secure this, men must
everywhere forego the artificial
creation, through the power of
wealth, of arbitrary censorship,
onesided judgments and false as¬
sertions,
of a so-called
public
opinion which sways the ideas, and

i

i

r.

!****»►

the

,

housing for educational in¬
stitutions for the ; benefit of vet¬

:

this constitutes

add, in the words of
Sacred Scripture (Proverbs, XX,
eyolyq as aft economic, juridic,
9-10) "my heart is clean, I am
moral and religious unit.
pure from sin? Diverse weights
"Within the confines of • each
and diverse measures, both are
particular nation as much as in
abominable before God." Anyone;
the whole family of peoples, state,
then, who exacts the expiation of
is
incompatible
crime through the just punishment totalitarianism
with a true and healthy democ¬
of criminals because of their mis¬
racy. Like a dangerous germ it in¬
deeds should take good care not
fects the community of nations
to do himself what he denounces
and renders it incapable of guar¬
in others as misdeeds or crime.
anteeing the security of individual
One who. seeks reparations should
peoples. It constitutes a continual
we may

group

s

All

tions; these

scramble for

Building materials also
channeled

■>rpTil; ;>'

4r-




the

or

the necessity and right of migra¬
tion, and to the desire to colonize.

of the human

ciated Press and published in the

they had striv¬

for generations to develop.
"It also sets arbitrary bounds to

en

trary to

up

be made at

conversion

be

mail, and

v

2

a resale, vet¬
purchasers are

that this will reshlt in increased
housing facilities.

post card. Regis¬

money ordei" air

of

struction where it

three

true and

a

and culture which

duced these to 3 short considera¬

The regulation: also provides
vantageous
of existing con¬

for

-

"Our gross

must

sale

originally paid.

mailing to Austrian The
each

case

other

sively to other veterans.

postage rates applicable are five

cents' for

or

pledged to the same thirty-day
waiting period, during which the
dwelling must be offered: exclu¬

Jan.

of

indicating the
prerequisites
lasting: peace, re¬

moral

and dishonest

sale

Common

gave a partial picture of the inter¬
est of the bank in the Hotel New

Pontiff,

are:

same

sewer

New York
Mr. Gibson

According to the
"Times" of Jan. 10

The

fundamental

will* reciprocal co
peoples. Motives of hate, venge¬
ance, rivalry, antagonism,; unfair

account, of the sum of $903,-

000, the/ approximate amount of
such tax savings."
-

safety of individual peoples;.
a continued danger

applica¬
ble to veterans.
Building materi¬
als covered byuthe new regulation

at the

ment, your Board of Directors au¬
thorized the transfer, out of cur¬
rent earnings to Contingent Re¬
serve

the

It represents
of war."

The Associated Press continued:

ing reserves, of $54.85 per share.
This compares with a book value

ing at the close of 1944.
•

first to veterans, and meets other
standards outlined in the regula¬

totaled/ $1,141,237.13; various as¬

„

i

^

;

I

?

h-M

•.^Pipt'lNSJyq
*MX

»

'i

i

1

'

i

i

t'~%

i
>

*

''
r

■

j'

pile

THE COMMERCIAL & FINANCIAL CHRONICLE

292

Operating Earnings
Of Guaranty Trust Cor

The Financial Situation
'

J:

;

r,

(Continued from first page)

Take,
example, the following ex¬
cerpts from the text of the re¬
something of the sort.
for

if the first

of
production
be
whole there is every
that the company will

months

judged

as a

evidence

experience a. tremendous, produc¬
tion, equal at least to that of 1941
(footnote 13), which was the high¬
est peacetime year in the com¬
pany's history; that toward the
end of the year, increased produc¬
tivity will begin to make itself
felt and output will begin to sur¬
pass

meagre.

unable to. come to
clear conclusions; but • one
stands out,-and that is that
the companies produced in

that of 1941; and that in these

and

them

fact

On the other hand,
12

are

any

port:

rates,
income and profits
We have examined

lished data on hours, wage

much

less in proportion to
capacity
than
General
Motors, and therefore, under the
peak demand to be expected in
1946, they are likely to be able to
operate at a proportionately high¬
1941

their-

volume

er

to -1941

relation

in

output than General Motors. Under
circumstances

these

not

do

we

think that there would be any oc¬
casion

for

considering

down¬

a

ward adjustment of the

proposed

circumstances the company ought

General Motors wage increase on

certainly to be included among
those employers who are capable
of making substantial
wage in¬
creases for the benefit
of their
workers and of the nation.
.■

the ground of price consequences

.

.

$ Much depends upon unpredict¬
human elements, and the
available data are scanty and not
altogether dependable.
On bal¬
ance, we think it reasonable to
expect that in the early months
of the new period productivity
will be. somewhat less than in
1941; that; in the latter months it
will be somewhat higher; and that
able

output per
manhour for the 12 months will
not be less than in 1941.
This
over-all

the

average

to the industry.
In satisfying

Motors

15%

increased

have

since1941 and may

increase more,

judgment and cannot be statistic¬
ally verified. If there be error in
this judgment, it is probably on

total payrolls have increased
and will increase proportionately
with wage increases and (f) sell¬
ing, general and administrative
costs
will
be
somewhat
higher

the conservative side.

than in 1941.

conclusion

:

In

represents

earning

best

our

.

.

,

.

and

capacity,

is

outstanding

among

American

corporations.

obviously, are not
but judgments about
the future. Of course, whether
J the Board; the President :or
any of the others realize it or
not; there is no rational basis
Here,

ffacts,

for the settlement of such dis¬

Company of
by Eugene

signed

Chairman
Luther

of

advance of the annual

meeting to
16, shows net cur¬
rent operating earnings for 1945
of
$17,157,091,
compared
with
$18,318,760 for 1944. In addition,
be held

Jan.

on

investment

Total

$3,813,507,042 and deposits were $3,309,452,507 and capital, surplus and un¬
divided profits* on Dec. 31, 1945,
totalled $312,676,255. The general
contingency reserve at the end

der

that, un¬
the com¬

$35,718,021. Hold-

obliga¬
$2,059>320,457 continued to
represent the largest part of earn¬
ing assets.
The Company's U. S.
War Loan Deposit at the end of

tions of

1945

amounted

year

The

in the report — in¬
deed very nearly the only sig¬
nificant passages to be found

passages

From

therein.
we

of these

some

precedented in its history, when
the demand for its products will
in all likelihood exceed its

max¬

his

Office

tion for

of

Administra¬

Price

pricing

pally' because (a) pfices of Gen¬

dent

director

the

resigned

as

models

than

; more

are

above

12%

in

were

the

on

an

1912

highest in the history of

the companyt
It* does not

member

should

do

made

the

application
by
Wage Stabilization
might be required.
We
felt it proper for us to
after

an

such

approval

National

Board

as

have not
consult

the

is

Office
on

of

this

because

Price

Ad¬

matter.

of

continued

shortages of materials and other
uncertainties in production, that
we have not felt, justified in es¬
timating for the
first
twelve
months - following resumption of
work a total production in excess
of
that
achieved
by
General

and

the

elected

was

member

as

the

of

mittee.

the

follow, of course,
that the company will not apply
for' price increases; nor do we
attempt^ to
forecast
what
the
Office
of. Price Administration
be

an

associated

became

a

of the firm

Executive

He became

of the

Board

con¬

director and

a

Com¬

until

company

January, 1934, when

elected

Chairman

Beard.

He

elected Chairman

of

Executive

he

was

the

was

of the

Committee

on

it

the

cept

advisable

suggestion

Board. It

seems

to

to

of

ac¬

the

that the

us

explanation is plainly written
the face of the extracts

across

fro

m

the

capacity to produce.
The
company will go into this period
in
a
very
favorable position:
With a more efficient working
force, as experienced workers re¬

Board's

report

.

technological advance which can
be expected to make itself felt
Significantly at least toward the
of

end

tion.
mobile

first

the

.

year

of opera¬

.

.

So far

as

the rest of the auto¬

industry is

concerned, it

recognized that the settlement
in this case will affect the wage
levels
of all
automobile com¬
is

,

panies, not necessarily identically
all at once, but fairly speedily

or

50%.

on

This desirable development will
greatly increase the company's
profits and will give it the pleas¬
ant task of
determining how such

profits

shall

be

distributed—to

stockholders, to

reserves, and to
generally in the form
of
higher quality and
lowerpriced products.
consumers

*

Th

*

W%%% 1 *'''

e r e

*'v',

are

>x* ~

those

>—

the

basis

thereof?

Corporation itself,

The

or a gov¬

ernment board? It would be

most unwise to

more or

in

this

matter.—and

and

less to the same ex¬

mobile companies. Only one

company

respect.
■

approaches it
Except. in the

other
this
case of
in

Geneva.! r Motors, I'^;hQ\^ever;

:




pub¬

of financial and related mat¬

recommendations be

accepted

without
creating
why Gen¬
eral Motors .Corporation did precisely such an impression?

ters—-who wonder

forthwith

40-hour

the

week,

make up the entire loss of earn¬
ings from reduction of the war¬

were

recommendations

of

the

as contained
the President, to¬

time

worked

hours

If

1944.

in

the hours should average close to

Motors

General

officials,

the

and

Union's

Recommended Settlement by
Board

it

"Since

parties

ment hould prove

hours should

follows:

apparent that the
cannot reach an agree¬

on Oct. 30,1945,, "We
hope, with a
reduced
work week, to maintain now the
same
take-home pay for labor
generally that it has had during

cannot

ford

end.

drastic."

"Tak!ng

a

account all the
circumstances,
the
Board
has
concluded that a general wage in¬
crease of 19Vz cents, or six cents
above the Company's offer, would

public

into

nance

in

interest
of

a

the

mainte¬

stabilized economy.
of the parties
we

each

"To

the

make

following

w*th respect to

the
a

this recommenda¬

Company we have this

The

award

is

There

war.

>

will

to be

have

But the Nation cannot af¬

drop.

that:

have

to

drop

should

there

If

too
be

a

drop in this case, we do not be¬
lieve that it would be a drastic
one.

"We

with these

conclude

gen¬

eral observations:

There

"1.

laid

is

upon

an

us

obligation not to recommend an
increase which

believe would

we

have
inflationary consequences.
comments We have satisfied our consciences

tion.
"To the

faulty and the
40 or less,

average

the loss would still to a very large
extent
be
made
up.
President

to this, Board to
specific figure in
the hope that it will afford a basis
for bringing this prolonged con¬
flict to a prompt and peaceful

it falls

ment,

judg¬

Truman said

is

recommend,

'

"2. If in this respect our

gether with the formal replies of

within

the

on

that

score

so

far

as

the Com¬

is concerned.
^
weighing the General Mo¬
tors offer of 13 Mi cents, (approxi¬
mately 12%) we think it perti¬
pany
"In

consider how other

probable

nent to

week in 1946.

panies and industries have been
meeting the present-day problem
of wage adjustment.

range of
the loss of
take-home pay which will result
from a
shorter average work¬

If

we

have under¬

estimated the probable extent of
overtime in 1946, there is an ele¬

earnings through
down-grading
and
demotion
which, though it cannot be meas¬
ured, should in our judgment be
given some weight along with
loss of earnings through shorter
ment of loss of

hours.

' '

'

"2. The proposal

is in line with
wage-price policy.
3. It is reasonably related to ad¬

the national

justments
been

made

which

have

already

by some portions of

American industry.

As a leader of
American^ industry^General Mo-tors ought to stand in the forefront of those employers who are
doing what they can to cushion
their workers the ; economic

"Information
of

from

Statistics

Labor

the

com¬

Bureaxi

indicates

a

steady flow of substantial wage
increases
in
varying
amounts,

by company and indus¬
try by industry. The^e variations
of course, to be expected, and

company

are,

will

Some

continue.

ad¬

the

of

justments are only provisional,
with
reopening provisions con¬
tingent upon the settlement in
General Motors. These provisions
were

entered

the

with

into

ex¬

pectation that higher adjustments
would result from that settlement.

"The situation
may

that

make

be
if
a

as

reported to us
by saying

summarized
General
wage

Motors'

were

to

adjustment limited

for

to 13 M>

shock of the transition from war

itely into the lower group of em¬
ployers who have been granting
wage increases, and that if it were
to make an adjustment of 16 cents

.

own

fraction over 40, based on

normal

made public, issued a
through its President,
C. E. Wilson, that the recommend¬
ations
were
"unacceptable
in
whole or in part."
tions

statement

permit the im¬ production to civilian production.
pression to prevail that the
"4, The Company faces a period
Corporation had yielded to unprecedented in
its
history,
the "official" findings as su¬ when the demand for its products
will in all likelihood exceed its
perior or even equal to its

thereby created an exceeding¬
among them are a number of ly dangerous precedent.
tent. It is well known that
Gen-^
individuals
of
eral Motors has consistently been
definitely more
And how could the Board's
'the most profitable of the- auto¬ than
average understanding
apd

erage a
a

amount here recommended would

"1.

find

not

believe is probable,

as we

recommenda¬

the

after

hours

24

to say:

Jan. 15, 1941.

quoted above. It may or may
not be possible for the Cor¬
poration to drive a better bar¬
Motors in 1941.
gain at this time. As. to this
We recognize, of course, that
we are hardly in a position to
turn from the war and take the
General
Motors
will
gradually
place of newcomers to industry; achieve
That, however, is not
higher and higher output, say.
with the new and up-to-the-min¬
only the time factor being in the point.
ute plant
facilities, which will question.
Certainly as General
The basic question is: Who
come into operation in the latter
Motors' new plants come into op¬
is to appraise the future and
part of the year; and with an in¬
eration, it may exceed in 1947 its
creasing
productivity
through 1941
production by as much as formulate, corporation policy
imum

Finding Board's recommendation,
but
the General Motors, within

have this to say:

If,

the hours worked ih 1946 will av«,

Chairman of be, fair, and consistent with the

trust

in 1921, was elected President on
Oct. 5 ..that year, and held that
office

1.

they

willing to accept the Fact-

were

di¬

a

agreed to retain

serve

"

would

as

Guggenheim Brothers, but

tinued to

that

ers we

effect of the benefit.

following year.
He
Vice-President in 1916

a

13,

ex¬

Fact-Finding Board

the Company as (Vice-Presi¬

eral

slightly

reelection

Potter

Mr.

Suchreshlt: is possible princi¬ with

Jan.

dated

be

can

"To the Union and to the work¬

an¬

to the Presi¬

letter

a

which

advance

in its report to

office in the bank and to give

*"

Motors* 41942

nounced in

dent,

officials

Union

the

pected,

on

nominees for

High Profits Are Cited

Dec.
As was ex¬

cal

pected to make itself felt signifi¬
cantly at least toward the end of
the first year of operation.

re¬

management the benefit of his ex¬
perience and advice.

purposes.

the

by

can¬

the year; and with an increasing
productivity through technologi¬

own

William

Company

which was
Company on

Union,

last, be restored.

10

1945

41, the loss would be more than
made up, and overtime premium
pay would further increase the

rector and has

the

the

celled

the

that

between General Motors

contract
and

and

an¬

C. Potter, Chair¬
man of the Executive Committee,
will retire from active duty with
.he

Union

the

The
at

4

Vb cents per hour to members

19

of

the

those of the base

It

The company faces a period un¬

a

pany can earn, in. the
months following the
of production, profits

ministration

quote further:

as

that

nouncement

equal volume of production, and
(b) General Motors' 1941 profits

Corporation explained
the other day. This plain and
inescapable fact doubtless ac¬
counts for other significant

$839,478,612,

$1,064,387,538

contained

report

praisals of the future, sound,
careful,
experienced
judg¬
ments, or "hope," as one of
Motors

to

with
earlier.

compared

Jan. 16. However,
Mr.. Potter is included among the

first twelve
resumption
in excess of
period used by

grant a general wage increase 0.

,

of the year was
in gs of U. S. Government

Fact-Find*

In accordance with its plan, the three members of the

,.

ing Board appointed by President Harry S. Truman, consisting of
Lloyd K. Garrison, Milton S, Eisenhower and Walter P. Stacy, issued
its report on Jan. 10. This document of over 20,000 words, which covers
every phase of the dispute between the UAW-CIO Union and the
General Motors Corp., specifically recommends that the company

resources were

of

General

were

$1,000,000 was trans¬
ferred from earnings to General
Contingency Reserve.

to become

of

profits

$5,181,436, compared with $4,642,503 for the year 1944. Miscellane¬
charges (net) amounted to
$84,843 in 1945 compared with
$330,546 in 1944; and in each of

stantial increase in income

executives

security

ous

1941 models* tbus yielding a sub¬

the

the

Cleveland, President, is¬

putes as this one except ap¬
,

New
York,
W.. Stetson,
Board, and J.

sued to stockholders < on Jan. 8 in

quest

Our calculations show
these assumptions,

in

production, it

maximum

tinuous

(e)

'

prospects for profitable and con¬

Trust

General Wage Increase of

19% Cents per Hour, or
Company's Offer. Says Proposal Is lit Line With
National Wage-Price Policy and Is Related to Adjustments Which
Have Already Been Made in Portions of American Industry. Award
Accepted hy UAW Union, hut Rejected hy General Motors as
Unacceptable in Whole or in Part as Basis for Settling Strike;
GM Says Offer of Hourly Increase of 13% Cents Still Stands and
"Refuses to Pay Higher Than Competitive Wages Because of Fi¬
nancial Ability,"
a

6 Cents Above

The annual report of Guaranty

these years

'

...

ourselves that, in
our
judgment, the company can
pay, in, the first twelve months
after the resumption of produc¬
tion, the recommended wage in¬
crease without
increasing, prices
we have assumed that (a)
Gen¬
eral Motors, will sell its products
at. its 1942 schedule of prices, (b)
productivity will be no greater
than in 1941, (c) aggregate vol¬
ume of production will equal that
of 1941, (d) material costs to Gen¬
eral

Recommends

Active Duty

are

,

all

Facl-Finding Boaid Reports
On Geneial Motors Dispute

Potter to Retire From

material costs,

Thursday, January 17, 1946

or

more

cents it would fall defin¬

it

would be in

the

cate¬

gory-of the highest-paying em¬
maximum
capacity to produce.' ployers and in the, position of
The Company will go into this pe¬ leadership of American industry
riod in a very favorable position: which it has occupied in the past.
with
a
more
efficient working In earning capacity, and in pros¬
force, as experienced, workers re¬ pects; for. profitable and continu¬
turn from the war and take the ous maximum production, it is
among
Aemirican
place of newcomers to industry; outstanding
with new and up-to-the-minute corporations. CWe. stress this fact
not
as
a
ground
in
and
of itself
plant facilities, ' which will come
into

operation in the latter part of for establishing

a

wage

increase,

Volume

163

Number

THE COMMERCIAL

4456

but
.as
a
significant
element
which may properly be taken in¬
to account in
.

determining the full

weight

be

to

attached

the

to

13 V2

cents

hour,

per

day, still stands. The Government
has stated that living cost's are up
33% over 1941. • Our offer, when

factors of
cost-of-living, reduction combined with other increases
bf weekly hours and ,down-grad-. made since January, 1941, fully
ing and demotions.
compensates for this accepted in¬
"2.

So

far

as

the

of

rest

crease

would

it

..industry is concerned,
is recognized that the settle¬

ployee's

ment in

this

will affect the

case

levels

wage.

of

all

automobile

cally

all

or

at

speedily and
that

but

once,

* more

extent.

same

It

or

is

fairly

less to the

well

known

cost

of

the

average

living

1941,

ary,

"The

and

and'

based

certain

on

courage
men
and

the

have

Motors

'-i/

the

manned

picket

the

lines

for

nearly 60 days deserves the honor
and respect of every American for

successful

fight 7 they have
price bhe. They
been, and still are, a bul¬
wark against higher prices and in¬

made to hold the

rec¬

have

ommended by the Board members

is

r

that
of

who

women

the

six; cents

whole.1:

sacrifice

General

em¬

*

additional

as a

We, believe

assumptions

flation.

by them which in the opinio a of

ently been the most profitable of

Board tried to

the

in part

19 V2

Motors has

consist--

automobile companies.
Only
other company approaches it

in this respect.
of General

Except in the case
Motors, however, pub¬
lished data on hours, wage
rates,
material costs, income and .prof*
its are meagre. We havd exam¬
ined them and
to any clear

are

unable to

come

conclusions; but

one

fact stands out; and that is' that
all the companies
produced in
1941' much less in proportion to
their capacity than General Mo¬

tors,

and therefore, under the
peak demand to be expected in
1946, they are likely to be able to
operate
at
a
proportionately

higher volume in relation

to 1941

output than General Motors. Un¬
der these circumstances we do not
think that there would be any oc¬
casion

for

General Motors

mendation
sumed

So far

industry generally
is concerned, we wish to
empha¬
size as sharply as we know how
as

the fact' that we have endeavored
to decide this case
upon its own

particular

merits.

have

We

not

evolved

any formula
or
set of
rules to be applied in other cases.
Each case must stand upon its

footing and be judged

own

ac¬

cordingly."
-IV. ; Specific- Recommendations

-

"1,

"We

.

.recommend

that

the

company grant a general wage in¬
crease of 19% cents an hour.
; "2.
In line with the customary
practice of American industry in

similar situations, we recommend
that the status quo prevailing be¬

fore the strike be restored by the
reinstatement of the 1945 contract
between

the

parties,

which

the

company cancelled on Dec.
10,
1945 (as it had a right to do). "3.

W.e recommend that after
the reinstatement of the contract

•

"4.

We

that

recommend

strike be called off and

be

employees

returned

the

that

to

.

the

work

without discrimination because of

their participation in the strike.
•

"5,

We

recommend

that

the

management, the union, and the
workers join in a whole-hearted
effort to, restore production as
speedily as possible; to continue it
without interruption; and to lift
it to new levels of efficiency and
capacity, in the interests of all the

to

the

war

when

Labor

proved and justified.
19 V2 cents wage increase

which

the

Fact-Finding

Board
recommends represents a finding
of fact for the volume of produc¬
tion achieved in 1941.

emergency

and

the Union's

no-

but

not

were

from

the

high levels

objectives

of

new

production, and
ployment without which the
nomic

ar¬

basis

achieved.

at

through, collective bar¬
gaining but were accepted under
protest and only because of the
war. Many provisions of the can¬

•

.

or

of

em¬
eco¬

connot

peace

be

"General Motors workers have

more

faith than your Fact-Finding
in;. America's
ability to

Board

achieve repord levels of
iii 1946.
The war

celled agreement were not prac¬
tical
and
sound
for
peacetime
operations.
A better * agreement

produc¬

tion

the

strated

Milton S. Eisenhower

|

Walter P. Stacy

devised

be

eral Motors, on Jan. 11 made the
following statement with refer¬
ence to the Fact-Finding Board's
recommendations:.
'; "The Fact-Finding Board's re¬
port recommending a wage in¬
of 19*2

cents per hour and

the reinstatement of the

wartime

labor agreement between General

Motors and the
after

careful

cancelled
Dec.

10,

•

plants.

"The

General1 Motors

Motors
a

as

UAW-CIO
tors

basis

in

:

whole

for

on

in

the
Mo¬

through collec¬

Motors

<1

to

of, all hourly-,

-employees
I*

offer

an
average
>>j--.■ iK.iifa>




which

of
ii*

transferred

were

In

serves.

the

to

the

of

case

re¬

trust

Other

company, net profits from sales
of securities were also added to
1

_

report, which was signed
by Gordon S.. Rentschler, Chair¬
man of the board;
W. Randolph
Burgess, Vice-Chairman, and Wm.

From the report we

cur¬

operating earnings were $16,393,098 compared with $15,355,511

profUs4" Jm
irom

demon¬

productive ability of

share

cents

a

bank

for

the

*
saies_ o.r securities, ! dividends
qq cents
7T^<»725'059
compared
i
declared
b.y
with $22,498,713.
I

less than that of industry. We
not have to clear our floors

reconversion

problem

is

$4,960,000
been

have

share

a

the bank and trust

for the second half. The
company's
part
of
this
t for the second half-year

company

m

that "our

65

or

paid by the
half-year and

were

first

or

Burgess delivered the rewhich it was observed ;>

also quote:

"Dividends of $4,030,000

;

rent

Mr.

extent

or

circulation", and the shifts of de¬
posits across the country under
peacetime needs and practices."

Gage Brady, Jr., President, noted

port

the

be

will

redemption of bonds
by investors, the return of part
of .the $28 billion of currency in

The

that for the bank alone net

factors

of the sale

.

'

^om nnn

do.1 *

,

v

'

'

A

;.

•

The greater part of the years
machines and install new ones,
earnings for the bank after divibut we do' face a change in vol- | oends together with released ;rer
of

of different sorts of work;
reorganization of staff, and an
adjustment to a' different world

•

a

than in 1939 when the
closed

in."

j

Continuing, the report said:
."How

much

v

the

bank

used

Camaguey Sugar Co.,.

clouds

war

serves of $6,500,000, representing
largely the sale oL our minority
stock interest in the Vertientes-?

j

'
has

for a transfer of $20,000,000 -to
surplus. At the year-end, capital
of the bank, remains at $77,500,000,

"We want.to use these tools of
abundance in peace and we want

tive bargaining to assure efficient
and
uninterrupted operation of

"

representing 300,000 workers
strike, have carefully consid¬

production*. \/

ence,
on

19^-cent-an?

hour wage increase and reinstate¬
ment of the 1945 contract on the
■

"That you are successful in per¬
suading, the corporation to recon¬
sider and accept the Board's rec¬
ommendations by Jan. 21, 1946.
We
are
willing
to
postpone
achievement of our full equity in
the situation in the public inter¬
est.
For that reason, and that
alone, we make the above offer.

tion.

,

"It

/

is. regrettable

that rules, this

corporation

that

in

our

two-billion-dollar

be

self-deluded

position and accepts
must as¬ into thinking of itself as a sov¬
responsibility for, pro-1, ereign state, hot subject to the
longing the strike and for forcing same moral laws that regulate
upon the General Motors strikers our other institutions and pot re¬
and the nation further hardship;. sponsible to the; interests of the
"In the.event the corporation nation and its; people.
"Since the corporation has re¬
does not accept the Board's rec-;
ommendations by Jan. 21, we shall jected the Board's recommenda¬
present

have

can

full

no

choice

but

to

tions

withdraw

we

are

forced

to

intensify

the Board's further our strike action.
19 V2-cent"We are* therefore,- informing
an-hour Increase and insist upon you that we are
requesting the
our equitable demands.
*
7
UAW-CIO Strike Strategy Com¬
offer to accept
recommendation; of
our

a

.

Y'lf

you

are

able, to secure the

mittee

corporation's acceptance of the
19 V2 cents increase and the re¬
instatement jof the 1945 contract,
and

UAW

to7 take

members

steps
in

to

tool

see

that

and

die-

jobbing shops immediately
work

the

on

cease

all General Motors work.

corporation negotiates a
satisfactory settlement 4 of r local

"If necessary, we shall ask that
the same action be taken in plants

issues,"

working

on that basis we are pre¬
pared to terminate the striker 77;7
•

"We

welcome

the

clear

ftinds doubled*

state¬

-7.;-"irepr.eTOj33tisj;

of

on

of production and the huge credit
inflation involved in financing the

that, as citizen members
of a great financial institution, we
have a share in this responsi¬
bility."
In the

General Motors parts

"With

Unallocated

reserves

gether with other 'reserves, in¬
cluding values of assets in excess
of book values (but exclusive of
market appreciation on the bond
account),
total
approximately

$40,000,000."
The report also stated that "the
of
the
branches
in

condition

occupied areas as we were
reoccupy them again has
proved to be better than we hads
enemy

able

to

feared,
up

and

still

the

appear

adequate

to

reserves

be

to

cover

set

we

than
possible;

more

any

loss."

report it was also stated:
the

termination

of

the

corporation/ This is

an

we;

the

economic

had with-?

hel$ thus fa^i }n,. the hop£, that. a
A

Foreign Bondholders Pro¬
Council Inc., New York,
recently, advised that a1 bill

war,1 loans for ;war purposes unvarious Governmental plans
running off, and applications
for credit through normal chan¬
nels and methods are showing an
increase both in inquiries and in
actual credits extended, including
credits opened for financing for¬
eign trade, and renewed calls for
personal loans. ; This is an en¬
couraging: indication of business
activity."

for adjustment of the

of El Salvador was enacted

As to.

deposit?, the report said:

"Total deposits of. the
the

year-end

were

bank at
$5,143,000,000,

which exceeds the total a year ago

$938,000,000.
The continued
expansion of bank credit is, as
by

But
the

settlement

could

resorting

to

be

that

reached

action.

apparently economic force is
only language; this insolent

epi3>o£Sdion underst^iid^."t

foreign debt

by the
Assembly of that, coup.-4'
The adjustment in general

National

try.

follows; the

terms

announced

~

in

1944, but 50% of interest arrears
for eight

years

is now scheduled

to be funded with interest thereon

at*3%. The advices also state:

".The Council has stated its wil¬

lingness to rjecommend the, pro¬
posed debt adjustment to the fa-s
vorable consideration of the bond-,

holders when the required imple¬

menting decrees have been issued
and

without

upon

The

tective

der

nomic

to bear

Adjustment of

El Salvador Debt

are

fair

pressure

Bill for

was

accessories, in order to bring
the full weight of the Union's eco¬

weapon whose use
•

assets.

"These figures, of course, reflect, which are deducted in arriving at
the
the country's immense expansion
published asset figures to¬

and

Fact-Finding Board's
report that the wage increase will
not require any price increase. We
believe

<

-

ognize

-

democracy the managerial clique

"Unless the corporation changes

sume

•

the record of capricious war.
They are a sharp reminder
irresponsibility displayed by Gen¬ alsa that the Nation's central fi¬
eral Motors in this dispute.
The nancial
problem is inflation—>
General Motors Corporation re¬ i whether the vast accumulation of
fused to bargain in good faith, extra funds will be used to fL
refused Government conciliation, nance an inflationary boom or,
rejected arbitration, scorned co¬ with wise use, to finance a period
operation with your Fact-Finding of sustained high production, em¬
Board and now, within 24 hours
ployment, and well-being.
This
after this report was issued, and
question will not be decided by
without giving it serious consid¬ Government
;alone or by any fi¬
eration, General Motors has re¬ nancial legerdemain, but by the
jected the Board's recommenda¬ behavior of the people. We rec¬

the General Motors workers
that they accept' the Board's rec¬

following conditions:

•

people

to

a

'

'

.,

"We believe you should call to
the
attention
of
the
American

"We have voted to recommend

ommendations of

7,

"Capricious" Acts Charged

the
report of '"your 'Fa!ctFinding Board in a special meet¬
ing in Detroit today.

ered

ment in the

?

General

Wtefy**:>■*'

or

settling

strike of General

increase the wages

rated

was

1945, is unacceptable to

General

part

by

UAW-CIO, which
consideration

1944. ;
These
earnings," it was
added, "do not include recoveries

tools of abundance.

our

,

The General Motors Reply
C. E. Wilson, Preside at Of Gen¬

crease

$23,917,565

the recommendations it

(Signed) Lloyd K. Garrison

gram which culminated with the
Victory Drive in November. The
future trend of deposits will de¬
pend largely upon the Govern¬
ment's fiscal policy, whether the
budget is brought under control
or
deficit
financing
continues.

share compared with
or $3.86 per share in

per

changed since then is shown by surplus .becomes $142,500,000, and
a few figures. -Our deposits at the 1 the .undivided
profits_ _accounL is
end of 1939 were $2,331,000,000 sightly increased at $29,294,238..
to Use them .in full in 1946. Rec¬
General Motors plants."
compared with $5,143,000,000 on I
"In the case of the trust cornord yolume of production in auto Dec. 31,1945, a 121% increase; our
] pany, all current earnings in exThe Union's Acceptance!
and
other ; industries
can
be Government s e c u r i t y holdings cess of dividends were added-to
On Jan.
13, within. two .days achieved in 1946; Maximum pro¬ have increased from $734,000,000 I undivided profits, t At the yearafter the Fact-Finding report, me duction is otir mdfet potent weapon to
$2,773,000,000.7 We handled. >endT the trust company- .has capjr
General1 Motors Council Of -thie against inflation; rNineteen Forty- more than 125 million Checks in tal of $10,000,000, surplus of $10,CIO United Auto Workers, accord¬ Six levels of auto production will 1945, an increase of 17%
over
000,000 and undivided profits bf
1939; we issued commercial cred- | $7,221,636.
ing to the New York "Times," far exceed the 1941 levels.
The two •institutions1
sent to President Truman the fol¬
its
for
exports and imports greater thus show combined capital funds,
"The Board's report lays the
lowing letter accepting the terms basis on which the General Motors in number by 28% and in amount that is, capital, surplus and undirecommended:
by 74%. In the same period our vided profits, of $276,515,874. ' ^7 *
workers can in the future rightly
!
"Delegates
to
the
National claim additional compensation as sales of travelers'checks increased
7 "We continue to follow a con-^
UAW-CIO Gtenerat Motors confer¬ we achieve these Jnghei* levels of 125%, and-our cable transfers of servative policy in the valuation
must

its

.

$4.12

time

•

:

people."

the trust company was $25,525,953

would not exceed 1941 levels de¬

parted seriously not only from the
facts of the General Motors case

Board

7 7
In the annual report presented to the shareholders of the National
City Bank of New York on Jan. 8, it was indicated that "for the year
1945 the combined net current operating
earnings of the National
City Bank and the City Bank Farmers Trust Company were $17,592,420, or $2.84 per share on the 6,200,000 shares outstanding in com¬
parison with $16,443,035, or $2.65 per share for 1944." "If net profits
rrom
sales7 of
securities
(after
^ ~—
taxes) are included," said the re¬ mentioned earlier, the result of
port, "the total for the bank and the Treasury's war financing pro4-

pioiits

"The

Fact-Finding Board in as¬
suming that 1946 production levels

strike pledge was in force.
Pro¬
visions ordered by 'the National
War

constrained to say that

are

"The

•

Nef Operating Earnings; Reported by
iSati! Rational City Baiik^'7

reserves."\ 777 7iy777"77.:v;- -;

case

provisions ordered by' the
Nafional War Labor Board. These
provisions were included as a re¬
time

the

view

the 19 V2 -cent-an-hour figure does
not grant the GM workers the in¬
crease which the arithmetic of our

many

of

to
a

achieving full production and
employment at the earliest

"We

"The cancelled General Motors

a

increase, is

contribution

our

as

hour

-

date.

UAW-CIO agreement contains

sult

an

full

forecast "of

own

-

national interest and with

The

wage.

cent

-

made

as¬

General Motors

excess

its

the

on

operations of the busi¬
ness and its own. estimate of prof¬
its that might result ftom such
operation. General Motors has re¬
jected the unsound principle that
a
specific
company
should - be
forced to pay higher than com¬
petitive wages because of its fi¬
nancial ability./

and

pending its expiration on
April 28, ;1946 the. parties settle
by collective bargaining the re¬
maining issues between them.

The

the future

rived

"3.

based

ability of

pay this
Board made

to the

industry.

is

to

at

a

unsound.

justify this amount
by devious take-home pay
arguments. Actually, the recom¬

down¬
ward adjustment of the proposed
General Motors wage increase on
the ground of price consequences

considering

are

293

Gain in

or

.

"Our offer to ypu, to accept the
Board's
recommeadation
for : a

General

one

.

raise

-

sumers

rate of pay more than
over what it was in Janu-

33 %

companies, not necessarily identi¬

the

in

the

automobile

CHRONICLE

smashing victory for the General
Motors workers, for the policies
of
your'Administration, Mr. Pres¬
ident; and for the American con¬

$1.08 per

or

& FINANCIAL

a

formal offer is made to the

holders
some

of

dollar

bonds.

weeks will be

further

steps

jrffer.'7 wiTs

At

best

required for

preliminary
•

to

v;■; 7

an

7

.•

THE COMMERCIAL & FINANCIAL CHRONICLE

294

handled

Gom^c

tend

Inasmuch as. figures of the Co¬
Trust
Company of New

lonial

York,

received by us,
and used in our Jan. 10 issue, page
173, have been superseded by cor¬

originally

rected

with

copy,

the

we

latest

are

giving here¬
figures

year-end

made available:

V

:

.

31, 1945, total deposits of

$60,623,057,
273,864

compared with •' $50,Dec. 31, 1944. Total re¬

on

of the ibank amounted to
$65,261,820 at the end of the year,

sources

against $52,001,037
"Cash
banks

amounted

to:

Holdings

$14,491,320,
a

year

United

States

obligations

' were

of

Government

from

due

compared with $11,979,197
ago.

'

a year ago.

hand -and

on

:

$29,314,415, compared with $26,173,895 a year previous. Loans and
bills purchased amounted to $18,344,041, ; against $13,175,560
on
Dec. 31,1944.
•

"Capital was $1,500,000, com¬
pared to .$1,000,000 on Dec. 31,
1944, the difference being repre¬
sented ' by
Capital Debentures
purchased by interests identified
with
the
management.
Surplus
and Undivided Profits were $1,009,947, compared with $620,440
a year ago."

depart¬

development

Mr. O'Shea

formerly a special
representative in the same depart¬
ment,

'

■

1945, the Marine Mid¬

Trust

Co.

New York

of

that total

nounced

resources

an¬

now

Corn

Exchange

Bank
Trust Company of New York an¬
in its statement

nounced

of

con¬

dition

as of Dec. 31,; 1945 that de¬
posits and other liabilities amount¬

ed

to

with
tal

$842,036,888

$680,602,630

resources

compared
year ago.. To¬
as

a

were

$882,047,904 in the

at

announced

most recent

re¬

entire

bank's

tal market value of

$370,276,323 and total de¬
posits are $347,885,687 as com¬
pared respectively with $304,252,908 and $283,067,049 on Dec, 31,
1944. Cash and due from banks in
the latest feport amounted to $90,-

766,660

against
$65,910,154 last
year; United States Gpvernment
obligations is shown to' be $149,533,263 as compared with last
year's figure of $129,323,993. The
capital of the bank has remained

unchanged at $5,000,000, while the
surplus has increased from $10,000,000 last year to $12,500,000 at
the present time. Undivided prof¬
its

totals $2,250,515 as

now

pared with $3,378,136
1944.
At,

the

annual

com¬

'.oral

bank.

Cash

of

tional Bank

&

behalf

shareholders

Trust Co.

of New

reported that during 1945
the Bank' had passed the halfbillion dollar mark, for the first
time and that its capital funds
had been, substantially increased

the

of

Trustees DeCoursey Fales, Presi¬
dent of The Bank Tor Savings of

i

tation Of service rings to veterans
returning to the bank, at a cere¬
mony held in the main banking

recently.*

Included

were:

Francis McCaffrey, Robert MacDonald, Victor Masseboeuf, Alfred

Mills,

Edwin

Frank

J.

Picken,
Girlando

Vavra

Albert
Titone,

Loans

Lawrence

and

pared with
of

as

of the close; of

$545,000*000 as com¬
$415,000,000, at the end

were

1944, both record figures. In¬

cluded in these amounts

were

re¬

port,

each

to

returning

veteran

at the present time.

71

organization

returned to their jobs.

of

the

who

men

had

left

the

bank to join the armed forces had
At

its

meeting

the board of directors of the Corn
Exchange Bank Trust Company of

from

service.
Fifty-one of the
bank's employes were engaged in
World War II of whom 22 have

annual

Most. of

the

remainder

"Total

resources

National

Bank

of the Lafayette
of

Brooklyn
high at the 1945
year-end at $38,483,000; a record
gain of $7,503,641 or 24% over a
year earlier, the bank's Dec. 31
condition statement discloses. De¬
posits aggregated $36,627,447 on
Dec. 31 last compared with $29,385,324 at the close of 1944, while
reached

new

a

New

York

made

the

following

promotions and appointments.* K.
Le
Roy

Corbett,

sistant

Vice

formerly

President,

to

As¬

Vice

President;

Merwin
S.
Jenkins,
Assistant Secretary, to
Assistant Vice President; William

formerly

A. Nash, W. Kenneth
Wilson and
John E. Griffin were
promoted to

Assistant
-officers

Secretaries.

All other
either re-elected or

were

re-appointed.

^

•

Francis W. Cole, Chairman

N.

McCarter, both

served

as

National
quested

of

of whom

have

directors of The Chase
for 21 years, re¬

Bank

that

their

At the annual meeting of share¬
holders of Sterling National Bank
& Trust
Company of New York, it

reported

was

names

not

be

presented for re-election because
they wish to retire from active

business responsibilities. The other
members of the board were re¬

elected.

that

net

operating
earnings for the year 1945, after
expenses and taxes; had amounted
to $470,089 or $7.83
per . share,
which compares with $-3.58 per
share earned for the year 1944.
These earnings do not include net
profit and recoveries
ties, which amounted
after

the Board of the
Travelers Insur¬
ance Co., was
elected a director of
The Chase National Bank
of New
York at the annual
meeting of the
shareholders of the bank oh Jan.
8. Malcolm G Chace and
Thomas

taxes.

Barth,

Second

Vice

President of The Chase National
Bank

of

returned

New
from

York, has recently

business trip to
Europe where he visited Switzer¬
a

land, Spain and Portugal.

bond

account, and

the

balance

undivided

Dec.

of
per

as

sistant

Superintendent

of




As¬

the

forth, and
in

the

a

surplus and
profits. Book value as
1945 equalled $91.75

31,

share

share

so

added

was

of the year to

course

as-

against

$84.51

per

year ago.

Capital, surplus and..undivided
profits

,

Dec.

of

credits

debits

and

1945

Total

year

end

compared with

were

proved.
The

the

Penn

the

following

re-elected

ensuing

year:

Barnes*

Morris

to

John

L.

Life

-

shareholders

Bank

re-elected

were

directors

new

and

of

condition

National

Bank

of
of

George

Vice-President of the bank; and
Elmer L. Lindseth, President of *
The Cleveland Electric Illuminat-

ing

compared

as

of

With

hand and due frpm

by

to

*

Company.

John C, Myers,;
President of F. E. Myers & Bro. Co. of Ashlarid, Ohio, had been
previously elected on October 8
to fill

a vacancy.
At the meeting,
shareholders
increased
the

the

capital stock of the bank from
$9,000,000 to $10,000,000 by de¬
claring a stock dividend of 62,500
shares of common stock being one
share for nine shares outstanding.
This stock will be distributed on

about February 4.
Sidney B»
Congdon, President of the bank,
in his annual report to sharehold-;
ers stated that operating earnings
for the year 1945 amounted «•to
$1,751,046 as compared with $1,652,667 in the preceding year.
These earnings were at the rate
of $3.11 per share as compared
with $2.94 in the previous year.
He also stated that the capital
stock stood at $9,000,000 at the
or

year-end and the surplus account
at $11,000,000, but that as soon as

capital mentioned ,
accomplished, the capi¬

the increase in

is

$10,-

000,000 consisting of 625,000 shares
and the surplus will be $10,000,-

OQQi
In addition, the undivided
profit and reserve accounts ag¬
gregate about $5,000,000.
He also reported to the share*

fact: That
under Reg¬
guaranteed
Services of
have declined

a
significant
production loans
ulation V, which are
in part by the Armed

000,000 to about $5,000,000.

resources

two

elected, viz:
Buffington, Executive

705,360

total

•

were

the

and

-

Government,

during the year from about

$17,-

This

decline, it is stated, is almost com¬
pletely offset by business advances
made by the bank upon its own
responsibility, and he made the
observation that this shift of bor¬

rowings represented the return of
the banking business from extra¬

ordinary loans for war production
to conventional loans to serve the

peacetime financial needs of busi¬
ness.
His report further called
attention to the fact that during

mained

unchanged for the past the year the decision was made
$7,500,000 but surplus, in¬ to add a limited number of strafrom $35,000,000 to $37,egically
located
branches
in
500,000 and undivided profits de¬ greater Cleveland and that pur¬
creased from $4,239,400 for last suant to this decision The First
year to $4,071,471.
National Bank of Rocky; River was.
creased

for the

Hampton
Clot hi er,

David E. Williams

Charlton Yarnall, Evan Randolph

of the

George F. Tyler, Sydney E. Hutch¬

President

inson, A. G. Rosengarten, Richard
Wood, I. W. Booth, John O

National

liam L. McLean, Jr., J. R. Downes

cluded C. Alison

pany,

D.

was

Exchange
Trust Com¬

and

Bank

reelected

Corn

Philadelphia, at a meeting

Piatt, P. Blair Lee, William Clarke of the board of directors on Jan.
Mason,' G. Willing- Pepper,. Wil¬ <15, Other 'officers reelected in¬

Scully, Executive
Vice-President, and J, J. Caprano,
Russell J. Bauer, Albert N. Hogg,
Roland A. Hillas, Paul E. Ludes,
H. A. Sinzheimer, Harry T. Kilpatrick, Floyd A. Crispin
and
Mark J. Igoe, Vice-Presidents. G.
Robert Haines;. Manager of ;the

J, William Hardt, Arthur Little¬
ton, Jay Cooke, William L. Bat
1

.

annual

of
The
National
City
Bank of Cleveland on January 8
all of the present directors of the

year at

:

and Charles S. Cheston,

the

holders

banks as
the
latest
report
$137,215,914 against
$120,088,813 last year; holdings of
U.
S.
Government
obligations
$420,697,456 compared with $445,361,766 and loans and discounts
$34,494,606 against $35,303,574 in
December of
1944. Capital re¬

directors

serve

Mellon

amounted

tional Bank. At the bank's annual

meeting

was
and

-

>

.

statement

shown

Insurance Co., have been electee
directors of The Philadelphia Na¬

were

At

meeting

Pittsburgh, Pa., shows total de¬
posits on Dec, 31, 1945 of $552,-

on

a year

Mutual

dealers

$558,836,205 and $617,235,188 re¬
spectively on Dec: 31, 1944. Cash

White, President of
Lehigh Coal & Navigation Co.,
and Floyd T. Starr, • Second Vice
of

-

$613,405,-320

V.

President

each. ^

war

$868,517,977

$774,12-3,070

time,

tal stock of the bank will be

department

finance

to

•

while, capital and; surplus remaiiied unchanged at $6,000,000

above

a pension plan mak¬
ing provision for all officers and
employes of the bank was ap¬

earlier.

Robert

Undivided profits during

dividuals to double the extent oi

elected and

the

ht

resources

535,935.

the year advanced from
$1,187,396
to $2,028,572 at the
present

1944. A time sales

installed

profit and loss account, the net
profits for the past year-were $5,985,472 compared with $5,777,017
1944.

Through its insured budget loan
department the bahk financed in¬

the acquisition of their customers'
notes. The 16, directors were re¬

to

$60,994,913

acquired by the bank, and also
property at the corner of Euclid
Avenue and East 107th Street is

of purchase where
The
Board of Directors at their meet¬
in the process
a

branch will be established.

ing held subsequent to the share-,
holders' meeting reelected the of*
fleers and authorized the
follow¬
ing

promotions:

from Real Estate

James B. Wolf
Officer to Vice-

McBride,
Terminal
crease of $434,728 over the corre¬
for
1945 were reported
Square Office to Assistant Cashr
by the
sponding figures shown on Dec. Provident Trust of
ier, and ; William W. Boorse to
Philadelphia at
bank's Foreign Department, was
31, 1944. Loans and Discounts at the annual
Trust
Investment Officer.
The
meeting of stockhold¬
the end of the year were $37,- ers, This
advanced recently from Assistant directors also declared a dividend,
represents a
gain - of
on

$5,505,355

$5,990,435
item

31, 1945, totalled

and represented

an

in¬

over

at the end

resources

an

increase of

the corresponding
of 1944.

on

Dec.

31, 1945

$174,725,392, and showed an
increase for the year of $46,860,412.
were

During the

•

Net earnings totaling

$1,433,580

President; Clarence R.
Assistant Manager of the

•.

Deposits
on Dec. 31, 1945 were
$167,417,603
representing a gain of $46,043,439
Over deposits at the end of 1944.
Total

H. P. O'Shea has
been appointed
by the Bank of Montreal

$572,968

erating earnings, and net profit
and
recoveries
on
securities,
$608,329 was applied to reserves,

■

W,

securi¬

on

to

Of the total net op¬

159,415 and showed

Alfred

transfer

"This increase
marked expansion of

a

loaning activities throughout the
year," Mr. Williams stated. "An
even more pleasing
aspect is the
ever-growing percentage of the
continuously Increasing total that
is being used in peacetime pur-

exr

are

meeting.

represents

returned to the bank's staff.

pected to return by late spring^

in

by

increase for the year of more than
$19,000,000
David
E.
Williams,
President of the bank, reported on
Jan. 8 to stockholders at their 87th

while they stood at $718,- spectively, U. S. Government de¬
781,202 on Dec. 31, ,1944. Holdings posits of
,$83,0QO,O()g and-$58,000,of, U.&S., Government securities 000. Capital; surplus and undivid¬
are now $615,281,573 as
compared ed profits at the end of the year
with $491,375,-397 a year ago; cash totaled $26,892,000 as
against $20,holdings of U. S. Government ob¬
in vaults and due from banks at 508,000 at'the close of 1944.
Op¬
ligations amounted to $24,307,243
the end of Dec. was shown ta be era ting
earnings for 1945 after
$178,687,417 against $155,327,786 substantial increases in expenses against $16,711,473.
last year'. Loans and
discounts for salaries and taxes were $2,Gross earnings of the Philadel¬
were announced at
$55,445,681 as 094,000 or $4.76 per share on 440,compared with the figure for last 000 shares, as compared with $1,- phia National Bank of Philadel¬
year of $38,719,585. Capital has re¬
786,000 or $4.47 per share on 400,- phia for the year 1945 aggregated
mained
unchanged for the last 000 shares for the previous year. $11,957,511 against $11,888,516. in
while
year at $15,000,000 while surplus Such earnings were exclusive of 1944,
operating
charges
and undivided
profits rose from profits on securities and recover¬ were $6,366,724 against $5,968,269
After
ies.
Mr.
$23,178,571 on Dec. 31, 1944 to
giving consideration to the
Gersten also reported that

$25,011,016

discounted

Exchange National Bank &
Philadelphia, totaled
$56,379,589 as of Dec. 31, 1945, an

and subsequent presentations :will
be held as additional men return

,

deposits

1945

bills

Trust Co. of

The Board has awarded service

.

Total

and

Corn

Wilcox.

now

and
and discounts amounted to

oans

$43,239,885
as
compared
with
$32,654,350 for the period to the
end of lp44. Undivided profits ad¬
vanced during the year to
$3,914,001 front $3,076,226 while
capital
and surplus remained unchanged
at $6,700,000 and $13,000,000 re¬
spectively. ■*

Herm an T. Blohm, George Breen;
W. Douglas Knapp, Armand Luna,

Schafenberg,

the

periods
$208,849,287.

and

hand and due from banks
most, recent report was

226^7.6 v against $ 13 2,652,408

New York made the first presen¬

room,

.on

on

now

against $66,268,225 for the1 pre¬
vious
year;
U. S. Government

same

shown: to be $47,645,327 compared
with $40,206,798 for last year. U.
S. Government obligations $114,-

of

Board

the

$232,384,113

in

On

for

assets

$250,453,396
hand r and /

Cash

due from banks is

$4,197,174 in ^obligations $133,533,580 compared 7
sis com¬ with $112,246,466; loans and dis;
a year ago.
counts of $63,661,689
against $54,-

delphia Trust Co,, Philadelphia,
Pa., announced that total deposits
were $206,623,482
compared with
$184,161,173 on Dec 31, 1944 and

of Union Square Savings Bank of
New York it is announced by R.
H.
Brownell,
President
of the

respectively,

value

lh its statement of condition for
31, 1945 the Fidelity-Phila¬

mond, Harvey Braxton, Co,, New
York corporate financing organi¬
zation, has been elected a Trustee

rings

meeting on Jan. 8, E. Chester Gersten, President of the Public Na¬

book

Dec.

H. Donald Harvey of The Ham¬

Dec. 31,

on

of

excess

pared with $2,957,806

consumer

stand at,

York,
The

the

contingencies,
thus
increasing
surplus from $8,000,000 to $9,500,000. At the year-end, marketable
bonds and stocks owned had a to¬

credit facilities.

was

In its statement of condition as

land

.

with offices in New York.

ment,

of Dec. 31,

"Colonial Trust Co. reported as
of Dec.

business

the transfer to surplus of
$1,000,-1 resources of $280,934,596 compared
000 from undivided profits and with
the figures for a year ago
$500,000 from the reserve
for of $235,986,046
and

subscriptions • to
sales of
$62,257,795. Since inauguration of
war bond campaigns,; sales in; ex¬
cess of $103,000,000 were made by
the bank to its customers. In the
latter part
of 1945, a' Personal
Credit
Department was
estab¬
lished as part of a program to ex¬

Items About Banks,
Trust

,23,758

bonds with aggregate

war

Thursday; January *17, 1946

year

$321,354
previous

over

earnings

Vice-President

forthe

T.

report to the stockholders, W. Lo¬

Cashier

and

MacCoy, President,-announced
operating earnings, not inclucluding profits on the sales of

Comptroller.

securities

of

of $1,112,226. In his

gan

to

Vice-President.

Jamee

Edward

year

Paul

'

_

was

reelected

D.

Williams,

•

,

net

nor

recoveries

on

In its statement of condition

previously charged clown, amount to
$930,215 compared with
$798,G14 in 1944. During the year,
ing

1945, the bank capital

funds

were

increased

by

t

Dec.

as

1945 the Fifth Third
Union Trust Company of Cincin¬

items

I

31,

nati, O. announced total deposits
(including U. S. Government de¬

of '70

cents

a

share

payable 35

shareholders of
record Jan. 18, and 35 cents pay¬
able May 1 to shareholders of rec¬
ord April 18. The 35 cents a share
payable Feb, 1 will not be pmd
cents

on

as

the

Feb.

1

to

62,500 shares to be issued

stock

dividend

to'

present

shareholders, but this stock will

posits) i of $262,457,103 and total participate in all future dividends.

iff":^

.Volume

/

163

Directors

Number. 4456

THE COMMERCIAL &

of

Union
Bank
of
Commerce of Cleveland on Jan.
.'10 declared a dividend of $6 a
share
on, capital, stock
*

$1,395,789 a year ago to $2,373,977
at the present time.-;;' •:•••■,
j
The First National Bank of Chi¬

payable

T Jan. 25 to stockholders of record
at the close of business Jan. 15.
:

A, dividend of $5, a share was paid
in
July 1945. President J. Kt
Thompson reported that net profit
after transfers to reserves for the
six months ended Dec.

31,

1945;

amounted to

$13.77 a share on the
35,300 outstanding shares of capi¬

tal stock.

It is added that Union
Bank of Commerce has an asset of
substantial value in capital stock
of Union
Properties, Inc. There

.

is

nothing, however, included in
foregoing earnings figures reJating to this asset.

; the

v..

;

At

the

annual

meeting

of

the

stockholders of The First National
Bank of Chicago held on Jan.
8,
present
directors were re¬

In

addition, Robert Ei
♦"Wi^'on, Chairman of the board,
."Standard Oil Company
(Indiana),
elected

was

director to fill the

a

vacancy, caused by the death of
Charles K. Foster. Following the
;
>

subsequent meeting of the board,
a number of
promotions in the of-f
ficial staff and the election of new
officers were announced. Clarence
E.

Cross, Edward J. Jennett, Coll
Gillies, and Herbert V. Prochnow
were

.

Vernon C. Bartels, Robert J. Crossley, Ellerton A. Lodge, and Julius
O. Sorg were promoted to Assist-

sant
.

promoted to Vice-Presidents.

condition

as

that

deposits

total

702,000
year

promoted to As¬

was

sistant Comptroller. New officers
elected were P. Alden Bergquist,

"Warren Smetters, and George W.

"Wills, Assistant Cashiers, and Otto
F. Haas, Assistant Trust Officer.

of

against

amounted

Dec.

1945
$2,347,-

31,

were

,

$2,102,621,000

Loans

ago.

and

a

discounts

to >$539,481,000

the

in

service.

Thomas

Beacom,

767,000 last year,
from banks

cue

Continental

tional Bank

and

Illinois

Na-;

Trust Company

••

•

And

newly elected

director,

was

'E.

of

Government obligations held
the

bank ; at

the

end

-of

by

194$

amounted to

$1,821,033,425 against
$1,638,809,259 last year; cash on

band

and

due

from

banks

all

the other officers

of

of

counts in the

recent report

were

announced at

$398,352,051 against
year ago.
Capital
surplus remained unchanged
at $60,000,000 each while undi¬
vided profits were $27,471,417 as
compared with $19,469,180 on Dec.
31, 1944.' ■pCill
a

and

held Jan. 14. Present stock¬

pany

new

receive

5

shares

of

now

about Feb.

£5. Harold A. Moore,

Vice-President and

Treasurer

Of

was

of

named to the

Treasurer.

additional post

The

following

di¬

in

the election of Mr. Anger to the

Chester R. Davis. James H. Doug¬

rectors

were

take

re-elected. The di¬

particular pride

Presidency of the bank inasmuch las;} Jr., Percy B. Eckhart, Newas

he

has

ranks.

twenty

••

through the
with the bank

up

Starting

C.

ton

a

took

nois

over

Farr,

and

F.

Stanley

Rickcords.

in
the Bookkeeping Department, he
advanced Until in January 1937 he
was
elected Assistant Secretary,
and in January 1945 was elected
Vice-President. In May 1945, he
years ago,

sibilities
■f

come

as a poster

the duties and respon¬
the
late Executive

of

Harris

Trust

and

Savings
Bank of Chicago, 111., announced
In its statement of condition as of
Dec,

31,

1945 that total deposits

profits

investment^-

on

of the debt and create a healthier

to

debt structure.

$6,065,120, which was trans¬
general -reserve. After
dividends
of 1 $4,200,000,
which
compares with $3,500,000 paid in
1944, the balance in undivided

ferred: to

profits

reflects "

increase

an

of

000,000 from general reserve to a
special reserve to cover post-war

at

banks

in

Dec.

$109,603,260

was

by the bank amount

to $290,194,-

435

$253,470,129;

compared

with

expansion and deferred altera¬
tions, the balance in the general
account shows

reserve

an

increase

bf $4,543;711 since a year ago^ arid
against
amounts to'$15,403,263.
$88,038,120 a year ago.
Capital
has remained unchanged for the ; In his report, S. Sloan Colt,
past year at $10,200,000 while sur¬ President, makes the following
plus advanced from $6,500,000 to comments on "interest rates":
$7,200,000 at the present time and
"Government fiscal policies are
undivided profits are now $7,168,- the dominant force in the struc¬
417 as compared with $6,180,406 ture of interest rates,
The policy
on Dec. 31,1944.
up to the present has been one
to

$111,652,347

John F.

Cuneo, President of the
Cuneo Press, Inc., and Chairmaa
of

the

Executive

the National Tea

Committee

Co.,

was

Mo., has announced the following
among
the
bank's
staff: William F. Impey was made

promotions
Assistant

Peter W.

Walter

Schmidt, Assistant

the organization

At

meeting of

Citizens National Trust & Savings
Bank of Los Angeles

officers, in¬
cluding Samuel K. Rindge, Chair¬
man of the board, and H. D. Ivey,
President, were re-elected,
motions announced

were

Hilbert, George H. Treide and A.
F.

Yaussi

to

Vice-Presidents;

bank's official

family

additions

^ In the Commercial

to

were

pro¬

,the

made:

Department;

F.

L. Beach to Junior Vice-President

and personnel director; Emory D.
.Mallek to Junior Vice-President,
and

of

reduce

John R.; Christie to director

interest

distribution of the debt itself. The

inflationary effects of expanding
credit

be

are

too well

known

dwelt

upon here, but
known
disadvantages

the
of
declining interest rates paid to
non-bank investors are only be¬
ginning to be recognized. If, in¬
stead of concentrating excessive
lesser

amounts of the debt in short ma¬

turities which tend to
the

flow

into

banking system^ fhe Treasury,

would issue sufficient amounts of

longer-term
and

retain

securities

to

attract

the

income

ings depositor and

of

sav¬

every

every

investor,

whether in Government securities
in

or

They

corporate securities.
the

reduce

income' of

en¬

every

dowed educational and charitable

institution.
do

not

Such

costs

these

as

through the Federal
budget but the public pays them
go

nevertheless.

It is

form of in¬

a

direct
you
may

taxation, or confiscation, if
please, that, in many cases
be far more'burdensome or

inequitable than straight Govern¬

ment; taxation to meet legitimate
debt costs."

L

The total

;

■

'' 'f,"

-

of the

resources

com¬

of Dec. 31,1945, amounted
$1,921,945,613, an increase of
$14,310,724 over the total of a year
ago.
Gross deposits at the end
of 1945 aggregated $1,749,590,469,
which compares with a total of
$1,726,073,557 as of Dec. 31, 1944.
These figures include U. S. Gov¬
ernment deposits of $399,015,291
on Dec. 31, 1945, as against $583,022,892 at the end of the preced¬
ing year.
?
pany as

to

As

the

announced,

previously

Board of Directors at its meeting
Jan.

declared

2

cents

April

payable

share,

a

dividend of 45

a

1,

1946, to stockholders of record as
of the close of business- March

This compares with the

9, 1946.

quarterly dividends ,of 35 cents a

the

savings Of institutional and private investors, it
would leadfdri better •distribution

share which have been paid dur¬

ing the last few years.

V

,9

v;

public relations and advertis¬

ing.

~

In

1

statement

of

condition,
required by the Comptroller Or
the Currency's official call of Dec.
31, 1945, the United States Na¬
its

tional

Bank of Portland,

reported deposits
and

resources

of

of

is

It

Oregon,

$581,111,239
$607,046,414;
t h a t n ot

pointed out
only do these" deposits represent
another rill-time high; but, in
.ad-j
dition, they reveal a gain of $100,-,
302,281 over the corresponding
call date of a year ago. Resources
for
the
twelve-month
period
gained $106,844,400. Another sub¬
stantial gain for the same interval
The

the following,

Pro-?

Earle R.

of

paid by the
Government on a greatly expand¬
ed debt, while important, is by
no
means
so
important as the

to

was

the same day,
motions
and

amount

bank

Comptroller.'/' ¥

of

Company of Chicago at the annual

Vice-President;

L. Kaltwasser, Assistant Cashier;
and

elected

director of the Continental Illi¬
National
Bank
and
Trust

"Declining interest rates do not
fact relieve the public of the
debt burden as suggested. Some¬
body pays the price for these
lower rates. They add to the cost
of every life insurance policy and
r

in

of

made in loans and discounts;
total

figure was. $68,940,88^
as against $41,894,023
or an in¬
crease of $27,046,864.

to

The

net

securities and recoveries amounted

$107,858,488 last year and holdings
"of U. S. Government obligations

shown,

the bank, Mr. Anger has become

'

15, Shows gross operating earnings of
$29,857,328, representing an increase of $2,336,578 over those for 1944;
while, due to increased ■ taxes and expenses, net operating earnings
of $10,172,617 show a decrease of
$786,661 from the 1944 figure.

against

due from

and

Coast fiuaird Returned

fully acquainted with every departmeht Jn the bank, and conse4
quently has at this time a wellintegrated and comprehensive pic¬
ture of the bank's organization,
operations and opportunities.

1945 mailed to the stockholders in advance of the

$5,972,178 during the year, bring¬
ing total capital funds to" $143,317,050.
After transferring $1,-

Dec. 31, 1944. Cash

on

Vice-President, Robert B. Umber- meeting of the shareholders Jam
At 0 directors meeting held
ger.
During his many years with 11.

.

year

maintaining ,low rates, but the
The Mercantile-Commerce Na¬ working out of the policy has re¬
shown to be $532,083,248 Compafed
with $502,196,052; loans and dis¬ tional Bank in St. Louis, St. Louis, sulted in declining • rates.
The

rectors whose terms expired were
reelected for a three year term:

the bank

;

The

The First National Bank in St.

was

.

Otis, Chairman of the Board,

and

iBank of Kansas
City,

State

vanced

the company, was elected a di¬
Chicago at a rector. Mr. Moore became associ¬
'regular meeting of the Board of ated with the real estate depart¬
;Directors on Jan. 8. Mr. Anger ment of the company in 1931. He
Succeeds John S. Miller, who was was elected
Vice-President
in
elected General Counsel. Joseph 1937 and in September of last year
Bank

director of the Mis¬

loans and discounts have also ad¬

Chicago announced total re¬
for the period ending Dec.
31, 1945 of $2,826,963,072 and total
deposits of $2,646,721,524 ; com/
pared with $2,619,821,040 and $2,447,740,086 on Dec. 31, 1944. U. S,

elected President of the Industrial

National

sion

a

sources

held. It is expected that the new
shares will be ready for delivery

...

Frank G. Anger, Vice-President

been elected

of

stock for each share

partment.

annual meeting held on Jan.

$433,362,527

the

De¬

Aireon Manufacturing Corp., has

Capital and surplus are announced
at $60,000,000 and $50,000,000
re-j
spectively while undivided profits
total $3,686,700 at the end of 1945.
The

The annual report of the Bankers Trust Company of New York

covering the

-

1945. These figures are compared
respectively with $459,229,659 and

good

the Trust

Operating Earnings of Bankers Trust

;;

;

ported by the bank to be $8,841,321? as compared with $8,655,115.

will

of

*

$436,577,000 on Dec. 31; 1944 as* Louis, Mo., announced total assets
against $470,047,000 at the end of to be., $524,091,820 and total de¬
1945, Earnings for the year' after posits of $494,514,707 in its state¬
deduction of ' expenses were re-1 ment of condition as of Dec. 31;

holders

head

of that date.

as

Gross

295

Arthur
E,
Welch, Executive
Vice-President and Treasurer of

shown to be

was

Vice-President, succeeds Mr. Os¬
as

holdings

$455,- Kansas,
'while .cash and

The directors of The First Na¬
; The number of shares, ol Chi-"
tional Bank of Chicago gave a'
cago Title and Trust Company of
dinner at the Chicago Club on
Chicago, 111., stock was increased
Jan. 10, in honor of Roy C.-Os¬ from
120,000 to 600,000 and the
good, who retired as Vice-Presci- par value of each reduced from
dent of the bank in charge of the
$100 to $20 at.the annual meeting
Trust Department after 39
years of the stockholders of the com¬
of

banking day Jan. 8, 1946,

entitled to the stock" dividend
which amounts to 33y3% of their

are

most; recent report against

Vice-Presidents, and Forrest $401,391,526

G. Paddock

the

CHRONICLE

cago announced in its statement of

.all

flected-

of

FINANCIAL

Treasury Dept.

Motor Carrier Tonnage Subscriptions/ Allotments i
Of Treasury Ctfs.
The Secretary of the Treasury
Lower in November
The volume of freight trans¬
ported by motor carriers in No¬
vember

■

of

last

8.1%

below

below Novem¬

according' to
American Trucking Associations,
Inc., which further announced as
follows:

year,

;

165.1.

offered
in

our

on

Dec. 16, and referred to

3059.

Dec. 20 issue, page

Subscriptions
were

Harry V. Dyke and Jos. R. Knight by Executive Order of President
freight, The volume in this cate¬
advanced
from. Assistant
Truman, to the Treasury Depart-, gory decreased 8.2 % below
Octo-;
Cashiers to Second Vice-Presi¬
ment, effective Jan. 1, the Asso-; ber and was 7.3% below Novem¬
dents, and Darwin A. Holway and ciated Press reported from- Wash¬
ber, 1944.
Fred H. Remmert were elected
ington, Dec. 30, adding that the
Transportation
of
petroleum
Assistant Cashiers. In .the Foreign
changeover was io be made, how-f
Department, Melville. A. Powell ever, subject to the following ex¬ products accounting for about
11% of the total tonnage reported,
was
advanced
from.
Assistant
ceptions and conditions/
showed a decrease of 3% below
Cashier to Second Vice-President.
"In the interest of expeditious
October and a drop of 20% be¬
Arthur C. Suhrbier, of the bank's demobilization
and other exigent
low November, 1944.
auditing division, was elected As¬ cies of the naval service, sucli
sistant Auditor.
Carriers of iron and steel haul¬
Coast Guard vessels, facilities and
The bank's directors declared a
personnel as the Treasury and ed about 2% of the total tonnage.
$2 semi-annual dividend payable Navy Secretaries may agree upori Their traffic volume was 3.8%
below October but 0.4% above
Feb. 1 to shareholders of record shall continue to operate as
part

several

dividend among the

Treasury

Fed. Res. Dist.—

•

Boston

Total
$116,468,000

1,587,736,000

New York-

Philadelphia

122,892,000

—

140,397,000

Cleveland
Richmond

74,588,000

96,859,000
372,520,000

Atlanta -A

Chicago

——--

—-—

Dallas
San

117,505,000

—

Minneapolis
Kansas City

were

the

follows:

as

St. Louis-

Approximately 83% of all ton¬

allotments

and

Federal Reserve Districts and

'

nage transported in the month
was hauled by carriers of general

A-1947,.A

of Indebtedness of; Series,

ported an aggregate of 1,792,811
tons
in
November, as against
1,951^335 tons in
October and
1,969,522 tons in November, 1944.
The ATA index figure, com¬
puted on the basis of the average
monthly tonnage of the reporting
carriers for the three-year period
of 1938-1940 as representing 100,

final

ing of %•% Treasury Certificates

'

Comparable
reports
received
by ATA from 206 carriers in 37
states showed these carriers trans-^

was

The need no longer existing for
Navy
operation
of
the
Coast
Guard, the latter was returned,'

decreased

October and 9.0%

ber

29 the

Dec.

announced- on

subscription rind allotment figures
with respect to the current offer¬

.

78,214,000
128,787,000
96,915,000
389,203,000

-

Francisco

1,110,000

Treasury

I—--$3,323,194,000

Total

Adm. Land Leaving

.

and

•

'

.

total

resources

were

$550,-

006,336 and $584,618,588 respe*
cively. compared with $510,677,765
and $542,575,614 a y&ar ago. Holdf
'rings of U. S. Government obligai
; iions by the bank amounted at the
end of 1945 to ,$134,090,272 against
$114,553,789 on Dec. 31, 1944; cash
and due from banks was $153,504,384 compared with $137,640,242; loans and discounts at the
latest date are shown as $134,662,096 against $119,381,374 last
year;. Capital and
surplus re¬
mained unchanged at $8,000,000
and $12,000,000 respectively, and
iimdivided profits advanced from




Maritime Commission;
1

:

Vice-Admiral

has resigned as

Land

S.

Emory

Chairman of the

,

Jan.

19.

of the Navy for such time beyond

Jan. 1 as they determine,
r "The Coast Guard will .continue
Comptroller of the Cur¬
rency has approved the "increase for such period as may be mu¬
of $1,000,000 in the capital stock
tually agreed upon, the air-sea

The

November, 1944.
„

About 4%

of the total tonnage

stockholders at the annual meet¬

weather stations and air-sea

ing

igational aids under the direction

reported consisted of miscellane¬
ous commodities, including tobac¬
co, milk,
textile products, coke,
bricks, building materials, cement
and household goods.
Tonnage in
this class decreased 20.6% below
October and 12.2% below Novem¬

of the

ber, 1944..

of

The

Manufacturers

National

Bank of Detroit authorized

by the

of the bank Jan. 8,
1946.
Stockholders of record at the end

rescue
nance

functions and the maintei
arid

operation of mid-oceah

Navy."

nav¬

Maritime Commission and as War

Shipping AdministratorvHis resign

effective. J an.

nation,

Washington

advices

President Truman
both

top

posts

man

Howard

signed

a

of

Press
5«

Jan.

accepted, leaves

in

the Maritime

vacant,

Commission

15, which

Associated

to

according

Vice-Chair-

Vickery having

re¬

week earlier because of

ill health. /.;■

■

•:

1

■

*

COMMTP CtAL Sr

Twt?

296

FINANCIAL CHRONICLE

(Continued from first page)
members
of the
newly created
Office
of
International H Trade.
•

Most of these

are

engaged in ad¬

the Export Control
Act and in winding up the admin¬
istrative affairs of FEA.
Only a
ministering

L small part of FEA had been con-cerned with activities related to

promotion of trade or to the
post-war
commercial policy of
the
United
States^ FEA
had,
the

and

promotion of the foreign com¬

will be per¬
formed in the Office of World
Trade Promotion
of which Mr.;
The service work

George Bell has been
Director.
Mr. Bell is
of

man

appointed
business

a

For

experience.

long

many; years he was; Vice-Presi¬
dent in charge of sales for Cater¬

During the war,

pillar Tractor.

in

widely

traveled

ne

South

always considered the
'$ promotion of U. S. trade an im¬
portant by-product of its work
^and some of its officials partici¬

America and more recently he has
been
in the Philippines,
Korea

pated in the wartime planning for
"post-war international cooperation
out of which came the commercial

Schnellbacher,
whose
valuable
commercial intelligence work for
the BFDC has long been recog¬

however,

policy program that was made a
part of the recent Anglo-Amer¬
ican
discussion
and which
re¬

and

Associated

Japan for FEA.

with

-i

Mr.

be

will

him

Emil

by the trade, and Mr. Hor¬
McCoy, who will continue in
charge of the Commodity Divi¬

proposal to form the

International Trade Organization.

"position—the
of the War.

activities

emergency

Agencies had to take

first place. ' However, in spite of
/limited funds and a less glamor¬

role, the Bureau, was able to
keep its files reasonably up to
date and did continue to perform
valuable service for business and.

ous

the War

Agencies. This was espe¬
cially true with regard to FEA
predecessor, the Board of
Economic Warfare, both of which
.were
able to allot part of their
emergency, funds, to the Bureau to
help finance the Service.
.

and its

'

The present merger of

"left of FEA
the

Bureau

what is

with those parts of
concerned with for¬

eign trade matters is therefore a
natural outcome of war activities
and

/V, ■'

war

relationships.

Organizational Changes of
Department of Commerce
I should like to say a word or

.two. more,.about this, merger;
I
/think, I can clear up - any mis¬

understanding of it in a few? sen?
Last. August;; just after

/ tences,

*

V-J Day and before the dissolu¬
tion
of
FEA,. Mr. Wallace an¬

nounced his general

plan to make
organizational changes in
the Department of Commerce de¬
signed to strengthen; and improve
some

•

its

■

service

to American

industry

hand

commerce.,/ The
plan involved the setting up of three new

.

major' functional

groupings: (1)
-world trade, (2) domestic indus¬
try, and (3) small business.
The
;

are,

from

f

problems of foreign trade
of course,
quite different
those

of

domestic

industry

'

small business.
Most compa?
nies engaged in both foreign and

pr
•

domestic

business

have

separate
export departments and in many

London

the

for

now

United

activities

the

will

as

ment of the Economic and

Council

which: will

embrace

all

the

McCamy is the head

and

is

Export control will be carried
on
in, a separate branch in this
office.
Walter Freedman, I am

to say, is going back to the
private practice of law, but we
are fortunate in having John Bor-

sorry

ton, his deputy, to carry on. We
have purposely
put the export
function

control

other

our

what

services

as

we

of

Economic Counselor to

matic

after hostilities
McCamy will be
assisted by Mr. Herbert Parisius,
who was the / Secretary of the
Mr.

ture
of

before

executives

cise to be administered and to be

Mr. Parjsiuk also headed

looked

mission

on

by the trade as a serv¬

North

to

ice needed because of certain re¬

UNRRA and

maining shortages in the stream
of supply.
Trade assistance rather
than control will be the keynote.

the

In addition to the more normal
functions
tional

of

providing

promo¬
and assistance

information

in

the

and

Labor Office in

'■

Ger¬
declared

which have been

many

available

allocation

for

the

on

war

and in the pe¬
I have had oc¬

casion to visit most of the countries
,

,

,

t

,

.

'

foreign from

.

le and which I would
h^ve en¬
dorsed had I been in the
Depart/

t

merit at the time.

.> In

division only of the old
:5FDC organization was there dif¬

/

well solved t^e problems without

creating ♦ duplication
Department.
"

within

the

Within that part of the Depart¬

of the

of

world. In addition to most

Europe,

I

have
I have

visited
been

China

through

the Middle East and North Africa*

In

the

Policy,

Office

we

shall

Department
elimination
controls

Through
merce's
tional
sets

for

in

World

of

join

the

working

of trade

Trade

State

for

the

barriers and

throughout
the
world.
the Secretary of Com¬

membership in the Na¬
Advisory Council, which
Administration's policy

the
the

Fund

International
and

the

Bank, the
Export-Import

Bank, we shall be concerned with
the foreign loans and their invest¬
ment policy of the United States.
This office will also have the De¬

I have made three

trips through¬
out the South American continent;
I have been in Mexico, in Canada,
and in the Philippines, and was
Australia when the

in

The

nature

with

I

have been in

entirely by native help down
from the mountains.
This plant
was not only advanced
technically
but also had
for

dispensaries,

nurser-

children

of
employees
schools, all the socia
appurtenances usually thought of
as found only in countries with an
'cs

vocational

advanced industrial development

^ ,ka.ve seen Altiplano Indians
m

partment's representation on the
Trade Agreements Committee, the
Committee for Reciprocity Infor¬
mation

and

on

the

Executive

at

their colorful

native

work

great

Pasco
seen

work

pol¬

States, and we
both to the fostering




Committee

for Economic

Nations

Organization will
by this office.
This
will, of course, include-me Inter¬

be

covered

in

the

smelter

the

small,

foreign

our

United

shall relate

Loadings—

just compiled by the 13
Shippers' Advisory Boards and
made public last Saturday.
On the basis of those estimates,
freight tar loadings of the 30
principal commodities will be 6,417,622 cars in the first quarter
of 1946, compared with 6,687,839
actual car loadings for the same
commodities in the corresponding

the preceding; year.
Five of the 13 Shippers' Advisory
Boards estimate an increase in
carloadings for the first quarter
of 1946 compared with the same

period

in

found

in

large

in

costumes

Cerro de
Peru.
I have
mill in Sao
Here again I

rayon

Brazil.

disoensaries, nurseries and
Throughout South Amer-

schools.
lca

J,ave also seen

with

ill-housed

second-hand

operated

as

the

many of the

plants

most

constructive

way

of

commerce
S. is for the U. S.—and
we are well able to do
so—to take

of the U.

the lead in
promoting the trade of
the world by
fostering and assist¬
ing this trend toward world in¬

dustrialization by the enlightened
use of a liberal
credit policy, by
pradicing a decent and coopera¬
tive trade policy and
by insisting
others do
likewise,, and

that

by

seeing that the

new

economic and

social
are
1

international organizations
strong and that they really

work.

two-fifths the 25 occurring in the
comparable week of 1945.

Eight. of

the week's 10 fail¬
involved liabilities
;of,. $3,000
For these large

ures

or more.

started

failed

concerns

Two small

with losses under

$5,000, one-third the number oc¬
curring last week and one-half
those

a

year ago.

Manufacturing

accounted
for
of the concerns
failing
in the week
just ended. -But even
in this
group, failures were less;
than half as numerous as in the

one-half

same

week

retailing,

of

at

1945.

two,

Failures-: in

only a
In the
wholesaling,
construction,
and
commercial service lines, only one
failure
was
reported
in
each
third

those

last

were

year.

group.
Two Canadian failures

ported
last

as

week

compared
and

only

were re¬

with
one

none

in

the

corresponding week of 1945.
Wholesale

Commodity

Price

Index—The daily wholesale

com¬

modity price index, compiled by
Dun & Bradstreet,
Inc., turned
upwar d

decreases.

peak of 182.49

Paper and Paperboard Produc¬

tion—Paper

production

in

the

United States for the week ending

1946 was 89.1% of mill ca¬

Jan. 5,

pacity, against 60.8% in the pre¬
ceding week and 81% in the like
1945

week,

according

American Paper &

to

the

Pulp Associa¬

Paperboard,output for the
current week was 75%, compared

tion;

52%

with

land

in the preceding week

80% in the like 1945 week.

Business Failures

Fall—After a

Jan. 9, 1945.
In

leading grains developed a some¬
easier undertone, particu¬

larly in new-crop deliveries. De¬
mand for; cash wheat from mill¬
exporters, and feed manu-.
f acturers continued Active
but re¬
ers,

ceipts; at
mained

eign

again in the week

Jan.

from the

on

wheat

or

inquiries

down

worst

and

no

ending

reports.

re¬

normal

the spot market.

turned

Inc.,

markets

below

practically

flour

street,

terminal

much

offered
needs

Dun

.

what

last week, com¬
industrial failures

10,

Monday of this

comparatively;light trading,;

and

mercial

on

week and Closed at 182.35 on
Jan,
8. This contrasted with 175.44 on

upswing

slight

concerns

of

corresponding, week.

period in 1945 and eight estimate

machinery and
kind

failures,

this represented a gain of one
from the seven a week
ago but a
decline of 13 from the 21 in,1945's

last
week,
follow¬
ing a slight dip early in the period.
The index reached a new postwar

a

most

United

icy of the

on

highly efficient
cotton
textile
plant using new
American machinery operated al¬

and one with the commercial

divide

business

trips was such that I visited
leading industrial plants in
many of these countries.
In Chile

ir+o two main subdivisions.
One
will deal wUh service to the trade

shall

my

ended.

the

Paulo

we

of

war

these

Foreign
Policy. And the Department's in¬
terest in the newly proposed spe¬
cialized economic agencies of the

tnpde,
;

concerned

a

•

Main Division of Foreign Trade

ment

Office of World Trade Policy

one

ficulty in dividing up functions—
t^at was
the Commodity Divi¬
sion.
Even there, we have
pretty

Freight

year,

mates

During the

The

promoting the foreign

s"

■

f ;e domestic work was made bef; re I joined the Department, but
*one which I believe was a
wise

Railroad

last

Carloadings of revenue freight for
the week ended, Tan. 5, 4946 dotal

tion.

riod just before it,

level of world
prosperity.

goods in

.

list of 43 industrial plants in

It will

(Continued from page 290)
week o'f
decrease of 0.8%.

sponding

International

rf:

numbers of people.

The State ol Trade

Geneva, will be

'•»;

vast

it

an

help relieve pressures of inequal¬
ity and / can generally raise the

also

for

the Economic Advisor of the new

OffjC(j»r-

Organization,

be

orderly force toward
raising the standard ■ of living of

were

6o2;457 cars, the Association of
foreign traders, we are goirig tff
The United States must take the American
a separate
part of our or¬
Railroad§ announced
lead in making the new inter¬ This was an increase of
ganization that will be concerned
146,306
with the many special types of national organizations work. It is cars (or 28.9%) above the pre¬
assistance which the Government through the work of this Office ceding week which includes the
of World Trade Policy that we Christmas
can now furnish in helping to reholidays
and
30,941
Store; trade witA war-torn areas hope to help take foreign trade out cars, or 4.5% below the corre¬
where normal channels have been of the strait jacket in which it now sponding week of 1945. Compared
so
disrupted that the medium of finds itself. We are going to try with the similar period of 1944, a
the Government is needed to start to represent faithfully the inter¬ decrease of 117,172 cars or 15.2%
Both
1946
and
things going again;
1945
Mr. Murray ests of U. S. business in the in¬ is shown.
Marker who was a special assis¬ ternational organizations dealing included the New Year holiday.
with
foreign
trade.
We
shall
tant to Mr. Scheuer, the Director
fight
Freight car loadings in the first
hard for the U. S. position, but
of the Bureau of Supplies of FEA,
quarter of 1946 are expected to be
we, shall definitely be guided by
will be in charge of this work. -,
4% below those in the same pe¬
a
policy of international coopera¬ riod in 1945, according to esti¬
This office has just circulated a
to

have

strengthened Inter¬

Labor

will

foreign

a

Africa

with the staff of the League

Nations

It will

scope

FEA.

Lewis Lorwin, who was for many
of

new

national

fighting allies have

England and
Continent Tor
FEA.
Mr.

years

It may change the
foreign trade and

tal.
If carried out under the
aegis
of the International Trade
Organi¬
zation and a

lend-

developed a desire to
produce some of these goods lo¬
cally. The development of light
automatic
machinery will make

our

for American
management and American capi¬

thought of as markets.
Furthermore, as a result, there
was

recent years.

surely increase it.

provide

ted unprecedented de¬

a

to

one

most

areas never

Secretary of Agricul¬
being appointed one

chief

the

our

under

mands for manufactured

Combined Food Board and Assist¬

ant to the

to

st iirtu 1

enter the country

ceased.

with

remaining control we exer¬

lease

distributed

great industrial de¬
more

so.

of

it will

backward

of the world and which

ners

widely

Diolo-

our

Mission, the first mission to

want

Promotion

Trade

Foreign

the Office

in

His

experience has been unique
varied.
Most recently he
spent six months in Austria as
•

own

by doing

Southern workers

own

our

pattern

generation ago and is now thor¬
oughly discredited everywhere/
American goods which accom¬
panied the U. S. Army to all cor¬

war

and

our

r

as

believe that we should foster
and encohrage this
trend, that we
have far more to gain than to lose

a

keen

a

student of economic affairs.

Control

Export

about

well be

may

I

myth about native workers who
were supposed to refuse to work
more than a few days a week if
their
wages
were
raised
just
enough to buy their weekly neces¬
sities. That same story was spread

■••••

Government

was

industrialized countries.
We have also seen exploded the

getting agreement on
policy proposals

This

as
the industrial revolution of
the early 19th
Century in Europe
and is significant to the world as

inhibitions and fears of this

our

areas previously ex¬
agricultural •? in
their

.

was

the industriali¬

overcome

are

the verge of an era of indus¬

velopment in

the so-called

of

It is-

we

important in economic history

trend. Most of you of course know
that our best customers are the

He ha§ had long experience

in

specialists-

India, but I
indicating its

these experiences to

toward

much
believe

I

throughout the world

economies.

great producer

countries. We have

magnifi¬

icy.

,

.

zation

commercial

Mr. James

mention

the trend

part of the British loan agree¬

ment/

a

that

reasons

clusively

emphasize what I believe will be
the most significant trend in the
foreign trade of the next decade—

fully behind the pro¬
posed International Trade Organi¬
zation and feel that Mr. Clayton

as

as

establish¬

within

trialization of

the

see

alization

•

are

cent work in

records

-

I

of

and bis staff have done

in

Trend Toward Foreign Industri-

International Trade Organization

and area officers of the BFDC and
number of FEA

seen

on

of steel.

eventually

of the Office of World Trade Pol¬

a

have

I did not

Mill

with the

industry

,>

these

that

the newest U. S. avia¬

possibilities

Social

Organization, the Bank, the
Fund, economic and social organi¬
zations
concerned
with
trade,
labor, food and agriculture, health
and education, and other peaceful
pursuits among nations.
Later in
the month I am planning to go to
London to participate in the lat¬
ter part of this conference.

We

on

Steel

Trade

j

•

at work

Tato

International

the

of

the Persian Gulf and

on

tion equipment.

Organization meeting where
they will help in the establish¬

for

have watched Chinese mechanics

_

tions

seas¬

many

the

A fferent from that of domestic
ind istry,
large or small. ;-The decif on to
separate the

refineries

Na¬

oned and experienced commodity

German reparations
account by
the Allied Control Commission. It
larger ones have sepais soliciting an indication of in¬
rate subsidiary corporations.; For-.
terest in these plants ort the part'
cign trade is highly specialized.
In determin¬
Because of the prevalence of Gov¬ of American firms.
ernment controls and monopolies ing which plants will be asked for
transfer to this country, consider¬
i id other barriers
throughout the
ation will be given as to the needs
\
orld now, more than ever
before,
for such facilities in the United
/•^reign. trade has a special rela¬
tionship to Government which is States.
cases

Trade Organization and
proposed International Com-,
modity Organizations.
% Several of our people are in

of

shorter periods of training'.

develop¬
the great oil

have seen

J

possible

ment

modern .' newer

the

ments.

•

nized

ace

sion.; * Mr*/ Perry; Stevenson will
also have an important place in
tile new organization.
Mr. Wil¬
During the war the normal
liam Friedlaender, who is known,
work of the Bureau - of Foreign
to many of you and who has spent
and Domestic Commerce was of
his business life in foreign trade,
necessity relegated to a secondary
will help Mr. Bell on promotional

sulted in the

of

the

of the U. S. >

merce

this

sweatshop, but these cannot exist
for any length of time along side

Government Promotion of International Trade
national

Thursday,' January 47/ 1946

continued

and
to

corn

was

For¬

Government
dominate

the,

market; moderate domestic
bo.okings were reported.
Mills,

however, continued to offer

spar¬
& Bradingly due to the tight cash'wheat
Only 10 supply situation. Heavy market¬

failed, a decline

of three

ings in the latter half of last week

previous week and only sent

hog values 35 to 60 cents

be-

vjVolume 163

^:the commercial & financial chronicle

Number 4456

low ceiling levels but virtually all
of .the losses were later regained

pillow-cases,. and turkish towels
low;- customers* were

remained

receipts fell sharply below ex¬
pectations. 1 • .*r
[i\
The recent heavy run of hogs
and the threat of a general strike
of packing-house workers result¬
in

material

a

production

increase

in

chased.

the

Consumers
were ; interested
in all types /of
home furnishings. The supply of
chinaware increased slightly.
Or¬
ders for new automobiles, refrig¬
erators,' and electric stoves flowed
in; few have been delivered, 1

some

in hog prices.

Cotton prices showed a slightly
downward trend last} week due

,

largely to the announcement by

Retail

the Department of Agriculture that
it would offer for sale on a bid

equal

short

Volume

and

ago

was

in

-

canned

meat

rose

in

cities. Butter continued dif¬
ficult to find.
-

Retail
was

4

further break in values

a

.remained

many

resulted in considerable sell¬

ing and

week

a

adequate supply than a year ago.
Soap and sugar continued scarce.

time, to be followed
fby an additional 850,000 bales
withinV the next 90 days.
An¬
nouncement by the OPA over the
past week-end that it plans to
place ceilings on the 1946 cotton
crop

volume

food

to

somewhat higher than a year ago.
Provisions were generally in more

basis about 650,000 bales of cotton
a

increased

fast-selling items.

as

time;} ceiling
prices prevailed despite the break

within

mattresses

supply of hard goods has
appreciably.
The
limited supply of electrical appli¬
ances 'v was
quickly
purchased.
Dressmakers' forms were reported

of

for

and

The

not

reported at leading centers. Trad¬
ing in lard and fats was reported
heaviest

Springs

remained difficult to find.

lard
last
week;
accumulation of stocks was

some

%

volume for the country
estimated to be from 0f ,to
above a year, ago.
Regional

Monday of this week. Activity
spot markets was seasonally
slew although there was good de¬

percentage increases were; New
England 2 to 6, East 5 to 9, Mid¬
dle West —2 to +2, Northwest

mand

0

on

in

for

better

to

4, South 1 to 5, Southwest
4 to 8, Pacific Coast —1 to + 3.
Wholesale trade last' week in¬

grades in the
medium staples. The partity price
•for cotton as" of Mid-December
showed a rise of 12 points to 21.82

creased

cents per

week's

pound.

slightly over the previous
level; volume was gen¬

erally unchanged from a
Buyer's
attendance
at

In the starting week of the new

year ago.

various
year, trading in domestic wools in
market
the Boston market was
openings was unpreeevery quiet;
^.dentedly
high
and
offerings lim¬
topmakers
a ri d
manufacturers
ited.
Deliveries remained uncerwere

reported covered for

months

ahead

some

■

Improvement

in
expected after the turn of I:

sales

<

tain.

Department

sales

stores

a

on

the yearfailed to

materialize, pre-.' C°u"tr?-W^ basis> as taken from
sumably due to the uncertainly the Federal Reserve Board s index
surrounding the labor outlook at 551"
Tv el ? i
iu
1946,
the

mills.

Business

decreased by 6% below the

in

foreign
wools was slower, reflecting a continued tight supply of desirable
grades.
favor

This condition is said to

a

,

-

in

Australia.

Sales

total
sales for the period from
Aug. 1 to Dec. 15 to 790,815 bales,
crapproximate 1 y 337,244,500
pounds.
Deliveries of worsted

-from

four

to

six

to

lag,

weeks

being

schedule in many instances.

Slightly—Due
sonal

mainly

decline

in

to

and

a

This

8, 1946.
the

over

at

was

$4.09

$4.14
a

of

on

9,

day

was

not

the

case

a

year

when Christmas fell on Mon¬
day.
;
■}:. •,"
•'5'-©Sl!
Retail trade here in New York
a go,

,

the past Week moved ahead with
volume outdistancing that of a

Jan.

year

rise of 1.2%

Jan.

as

heavy.pre-Christmas shopping

which

sea¬

egg;

stood

closed

well

week therefore included one

of

prices, the
wholesale food price index, com¬
piled by Dun & Bradstreet, Inc.,
dropped 1 cent from the previous
week

as

The large increases shown for
the week ending Dec. 29 reflect
in part the. fact that
thi$ year
Christmas fell on Tuesday and the

behind

Wholesale Food Price Index Off

ago

gains of department
Many

as

stores approximated 25 %.
clearance items sold well.

1945.

Declines during the week occurred
in rye, eggs, potatoes and lambs.

stallments

to

succeed

the Board.

on

1937 Mr.

Mr.

It

death

In the event of

President

occurred

noted

was

in

the

last
New

of the

York

effects

time

as a

of

He

Chairman

even

was

continued at that

director.

reported

the

Wholesale markets had

-

.

'
an

un¬

rate

out).
and

Tories-in-disguise (a much easier

our

.

,

stand

»!«

for

.'

the

'

fit

veto

-

power,

and

way

a proper

v

-

the

•>.

accom¬

of national
sovereignty, the United States has
position in complete reversal of its isolationist position
which followed World
War, I. Now we are the internationalists
a

who

must transfer billiohs of dollars to
England to secure her abstention
from economic isolationism.
We must appease'and
re-appease Rus¬
sia
politically between Big Three Conferences and at the UNO meet-

{ngs;, and ;presMably financially with a future loan; to keep her
playing at all. vEven sofhe price ttftfe paid for reconsideration' of her
indicated aloofness
#from Bretton Woods and the cpming Interna¬
tional Trade Conference is hot clear.
'
'
*

.

In air the
non-stop public discussion of inflation too little atten¬
tion, has been given to the factor of
"negative inflation"—a term in¬
troduced by the British
economist, Raul Einzig, to' describe relative
scarcity of goods and services^
The great emphasis in both British
and. American
thihk^g on inflation has-beendn "positive" terms of
the wartime expansion pf
currency and purchasing power.The
4<negative". inflationary factor of the., undersupply^ of civilian
goods
on which the
purchasing power can be expended,* has not been suf¬
ficiently taken into account.

Mpls. Reserve Reports.
Appointments
The

as

Apparently, clarification can best come about through
generally-agreed-on definition of "liberalism."
•

grown to

share from 1932

a

through 1941.

the master

.lit

bank in the city. The

$100

even

Excepting for
panying retention

no

majoir

was

.

over

and Nationalization. Plan

which

of

other

'

Actually the most important issue before the United Nations
today is their exercise of the veto power. In the
proposed abolitiqn
thereof the Laski-criticized British
government is surely taking a
most democratic
stand; and in insisting on its continuance it is Rus¬
sia and the United States who
are. acting like the completely reac¬
tionary devils. " As revealed in this and other
issues, the accession
to power of a liberal
socialist government in' England has forced,
apologists for Russia's foreign policy to the alternatives of either
agreeing that Soviet policy is not liberal (too bitter a
pill); or of
disowning Messrs. Attlee & Co., with their 5-Year, Socialization

present intention of
the
current
dividend
$80 a share, which* he
contended, represented the pay¬
ment of a higher proportion^ of
earnings than is ? made by anywas

'

$

to world peace" on further conciliation
of Russia.

bank

changing
rate

Vj '

mind of Professor Laski
evidently is con¬
by Russia's international policy. The mental
genius of the
Labor Party last
Saturday delivered another thunderous
blast against "the American of
big business," as the bad-boy "reac¬
tionary in international relations." And, as
usual, he based "the }key

non-Government
had
matured.

on

$

British

operating earnings in
1945 of $10,661,000, after taxes,
not including profit on securities.
This compared with $ll;2i 1^000 in
the previous year.
Security prof*
its last year were $2,169,000.
Mr.
Nagle said these profits arose not
primarily from trading but from
redemption

■

the publicised opinions about the Loan's
volume.
Administration officials have this

are

fantastic;"

billion

Now

net

securities

our

ljt

fused

the "Times" of Jam 9, which also
had the following to say:

had

on

,

in the arm."

dent, said Mr. Reynolds insisted
on
being relieved of his active
duties, "and we felt we must re¬
spect his wishes." We quote from

Nagle

iteresi

l

in exports of $10 billion in the coming year, and
the long term.
On the other hand, this view is
sharply disputed by many private observers. The
vice-president of
the Overseas Automotive
Club, Mr. M. R. Sacra, just returned from
a
trip abroad, is extremely skeptical about our
ability to export to
England or Australia.
He states that the shipment of finshed manu¬
factures is virtually
impossible, and that the Loan is a mere "shot
$40

'; At the annual meeting on Jan. 8
Alexander C. Nagle, now Presi¬

Mr.

loan free of

export
week been quoted as
estimating the resulting volume of purchasingpower about to come into the American market
as "unprecedented—

to become Chairman of the Board

post

a

$0,

Equally divergent

following the death of George F.
Baker, and served in that capac¬
ity from June, 1937, until Janu¬
ary, 1939, when he retired again
the

obligation in the early

.

.

default, the dichotomy of explanation
proceeding surely will be irreparably inten¬
ft

year.

"Times" of Jan. .9 that Mr.
Reyn¬
was recalled from
retirement

and

.

eventual

entire previous

sified.

olds

abolished.

minimum

our

installments.

After that we pay no interest in
any year in
which our
exports have not been restored to a level which
may be estimated
at about 60% in excess of
prewar.
I repeat that."

of the bank, having been succeed¬
ed in that post. V
Lqon Fraser,
whose

by equal

years.

was

Reynolds

was

spread that

so

Assuming that the principle
of charging interest had to be
observed, then almost everything
possible has been done to mitigate the burden and to limit the risk
of a future dangerous
embarrassment.
We pay no interest far six

From 1922 through

Reynolds

are

actually less than it would be with

repayable

of his duties as director at the
annual meeting of the stockhold¬
ers of the bank on Jan. 8.
Percy

Chubb, 2d, of Chubb & Sons,

is

years

First National Bank of New
York,
at his own request was relieved

elected

-r

(Continued from first page)

Jackson E. Reynolds, who since
1917, had been associated with the

there

were

on
Tuesday Jan. 1, and conse¬
quently the week ending Jan. 5
included only four trading days
as compared with five in the cor¬
responding week last year.

during the first half of December
amounted fo 51,575 bales, bringing

continued

Monday, Dec,. 31,

on

from

that country to the United States

fabrics

same

-

In many cities stores

reported delaying appraise-

were

ments

Observations

Operating Earnings

period of last year. This com- These investments must be re¬
with an increase pf 27% placed, probably at lower yield
f the preceding week. For the-- rates to the bank, Mr. Nagle point¬
^°Jar weeks ended Jan, 5, .1946, ed out.
In response to a stockholder's
mcr®^ by 13 % and for
yea^
showed an m- question, Mr. Nagle revealed that

large turnover of domestic
wools during the next few months.
Foreign primary markets were
1
mostly inactive; strike conditions crease ot 11%.
•

First Nafionai of N. Y.—

often limited in the number pur¬

as

ed

297

Federal

Reserve

Bank

of

Minneapolis through its President,
J. N. Peyton, announced on Jan. 1
the

following appointments made
by the Board of Governors of the

This seems
particularly true of the United States, and this is
extremfely important in our policy-idetermination. The
^negative"
scarcity element of the inflationary picture will be
overcome much
more quickly here than
abroad, because of our enormous and quick¬
ly-adaptable productive capacity. If, in. .the face of the
six-year
growth of $214 billion of individuMs' liquid
assets, our price ceilingline has been fairly well held thus
far; with full, production just

Federal Reserve System:

Roger B. Shepard, President,
Finch, Van Slyck & McConville,
£1. Paul, Minn., designated Chair¬

precedented number of buyer ar¬ man of the Board of Directors of
the Federal Reserve Bank of Min¬
around the corner* may we-in the
sheep. The index represents the rivals from all parts of the coun¬
hot-too-distant future perhaps be
and
Federal
Reserve
try, but could offer them little in neapolis
sum total of the price per pound
worrying over the need for price floors?
The speed with which
the way of merchandise.
of 31 foods in general use.
Many Agent for the year ,1946.
production is still reflected in prices is evidenced in the current
intend to return at the close of
W. D. Cochran, Cochran Freight weakening
of the gasoline structure.
Retail and Wholesale Trade—
January to look over the situation Lines, Iron Mountain, Mich., des¬
Retail volume for the country as
again.
ignated Deputy Chairman of the
a
whole rose last week slightly
In his remarks before the Indianapolis Chamber of Commerce
The voliime of wholesale and Board for the year 1946,
over
the previous holiday short¬
this week (published in full'
elsewhere in this issue), President
retail food sales reflected a slight
; Paul E. Miller, Director, Agri¬
ened week and was almost even
Schram of the New York Stock
Exchange said that the market -is
falling off from the heavy holi¬ cultural Extension
with a year ago, according to cur¬
Division, Uni¬ not acting as the creator of
inflation, but as a thermometer registering
day totals. The shortage of bitter versity of
rently weekly survey by Dun &
Minnesota, Minneapo¬ the public's views. While the inflation that is extant
has no doubt
the} past week was acute ll and
lis, Minn., appointed Class C Di¬ been generated by basic factors such
Bradstreet, Inc. There were only
as
governmental fiscal and
proved a feature.
scattered clearance sales; business
rector of the Federal Reserve labor policies, it may at the same
time possibly be true that the
According to the Federal Re¬ Bank of Minneapolis for a three- Stock
was brisk in those that were held.
Exchange, in - proclaiming. (correctly or' perhaps incorrectly )
serve
Bank's index, department year term beginning Jan.
Department stores reported de¬
1, 1946. the irresistibler arrival of inflation, is
acting as a cumulative stimu-store sales in New York City for
pleted inventories with little pros¬
Malcolm E. Holtz, Agricultural¬ lant to the, underlying inflationary pressures.
the weekly period to Jan.
5, 1946, ist, Great Falls;
pect of more regular deliveries
Mont., appointed
decreased 4% below the same pe¬
immediately.
Food
Director of the Helena Branch of
buying re¬
This compared the Federal Reserve Bank of Min¬
turned to pre-holiday levels and riod last year;
PIWC Ended
supply and transportation of the
with
an i ncrease of 29 %
volume was considerably over a
combined petroleum resources of
(revised neapolis for a
two-year term be¬
Liquidation of the Petroleum
the United Nations in the
figure) in the preceding week. ginning Jan.
year ago.
foreign,
1,1946.
Industry* War Council and the field
For the four weeks ended Jan.
were administered and which
Men's and women's shoe volume
5,
Foreign Operations' Committee,
1946
sales
"rose
by 16 % and for
authorized establishment of ihs
rose
last week.
Fur sales have
with their
Buffalo Paper Ups Price
committees;;and sub¬ Foreign Operations Committee as
slowly declined from the high the year to date increased by 14%'.
There

were

advances

in

oats and

-

,

,

,

(

;

,

:

:

■'

level

of previous weeks.

volume
ago.

•

-

,

,

'

•

-

|

Increases in the

supply of piece
goods were negligible and cotton
stocks were reported particularly
low.

Customers

hesitant

priced

,

,

.

•

,

,

v

.

wear
with
evening I
^ hearing scheduled ton deter-.
Nylon sales continued to mine whether the broker-dealer

create rushes.

•

H^upt Hearing Postponed
■*: .'

for

dresses.

about

linens.

were

somewhat

purchasing

Stocks

of




high-

sheets,

■

•

•

■,

"

—

1

committees, operated under the
direction of the Petroleum Ad-

Of Sunday Edition to 15c

Blouse

slightly over a week!
•Glittering scarfs were prerose

ferred

Vi

■,;

t1

registration of Ira Haupt & Co.,
New
or

(
*

York,

revoked,
c

should
was
...

be

suspended

again postponed
,

L

«

by, the Securities and Exchange

j Commission.

The hearing is

scheduled for March 12.

-•

now
L

v.

The Buffalo

<N. Y.) "CourierExpress" notified its readers on
Dec. 30 that, effective Jan. 6, the
price of its Sunday edition would
■

be increased from

The

Associated

12 to

Press,

15

cents.

reporting

this, added:

"The paper pointed out that the
increased
other

.

cost

of

materials

newsprint
had

made

price advance necessary."

r

•;:

and
the
•

?

ministration, for

War, have been

liquidated by order of Petroleum
Aarnlnistrator for War; Harold L.

Ickes,

an

ad visory

body, the Ad ministra ¬

tion explained.

All restrictive provisions of Di¬
70
have
already been
lifted, Deputy Petroleum Administi'ator Ralph K. Da vies, pointed
rective

.

according to "Journal of
Commerce"; Washington advices out. The directive
itself was con¬
of Dec, 26, yvhich said;
tinued in effect to permit
orderly
The liquidation was effected by completion of operations under¬
taken
before
the
rescinding c Recommendation " 24,
restrictions were
which

outlines

the

duties,

tions and procedures of the

func¬

PIWC,
arid -Directive 70, under which the

lifted.
tive

70

The
and

revocation

of

Direc¬

Recommendation

is effective Dec. 31, 1945.

24

Aid rich

GilesJfiigh Quality of Assets of Nation's
Banks —1945 Earnings of phase Bank

Lower—Strike Postponed-- Amsterdam Stock
Priee Increases Averaging $4 a Ton Discusses! Exchange Reopens

Steel Operations

to expand the 150 an hour offer
F. Fairless on behalf of the United States
Steel Corp. and if Philip Murray can see his way clear to reduce his
19V20 an hour offer despite the automobile fact-finding board rec¬
"If

'

ommendation, there will be no steel strike on. Monday, Jan. 21," ac¬
cording to "The Iron Age," national metal-working paper, in its issue
of today (Jan. 17), which further^
-adds:
..y/,v:;" capacity for the week beginning
"These 'ifs' are so big however January 14, compared with 82.0%
that at mid-week there was no one week ago, 83,0% - one month
than

more

other

chance of

50-50

a

strike

an¬

The
possibilities of frayed nerves and
-Government
mishandling
of a
postponement.

problem

price

steel

complicated

large." as
a
determining
in the steel i controversy

loom

factor

'

outcome.

and 92.2 % one year ago. This
represents a decrease of 5.5 points
or 6.7% from the preceding week.

ago

operating rate for the week
beginning Jan. 14 is; equivalent to
1,401,200 tons of steel ingots and
castings, compared
to 1,502,000
tons one week ago, 1,520,300 tons

.

one

month ago, and 1,688,400 tons

15c an hour
offer has been voiced unofficially

one

year ago.

companies, and it
was to
have been expected that
the meeting held in New York
early this week at which Mr. Fair-

summary

Steel

the

of

Corp.'s

by spme steel

less made his report to other steel

"Steel"

"On the other hand Mr. Murray

taking

unprecedented

an

step

by postponing the steel strike will
be in an unenviable position late
this week if a wage agreement is
in

not

It is

prospect.

doubtful whether

extremely

second post¬

a

ponement would be made under
such circumstances.
"It

that

obvious this week

was

Government is bluntly

the

'promised' $4
prices as

using

ton increase in
club to force a
This purported
promise has become somewhat of
a mystery in that OPA has in no
way indicated its approval Of a $4
increase, what products would be
a

steel

a

a

agreement.

wage

markets,

other sources, unless changed be¬

out, that

straight
ad¬
justment of $4 or slightly more is
in prospect when and if a wage
across-the-board

steel

on

actions

the

if

blow

it

and

came

maintain

to

time

same

possible, to soften

were

as

a

the

at

strong

position for steel production if the
threat passed without interrup¬
tion.

"Aside from the possibility of
the

the

strike

industry

well

is

prepared for the future, with or¬
der books filled to

almost

an

un¬

precedented degree and plant in
position, to produce at high speed
with

augumented labor forces. As
as possible in the time since

far
the

closed the ravages of high

war

verted form.
"Various

ship¬

of

suspensions

ments were made last week, par¬

ticularly in pig iron and scrap
moving to. steel rpills, though they
were not nearly "as heavy as had
"If
such
a
price increase is
been
expected.
Growing hope
granted the problem of the nonthat
a
maj or strike might be
integrated steel mill will be more
averted or delayed, was a factor,
precarious than ever. A straight
across-the-board advance would accompanied by urgency for get¬
leave
these
smaller
companies ting materials in and the under¬
first time in
which buy semifinished steel and standing for the
process it into finished steel prod¬ many quarters that demurrage on
settlement is made,

~

:

ucts in the

they

same

position in which
42 hour week

a

in the steel

industry at about the
ascurrent
employ¬
it is estimated that a 15c

level

same

ment,
an

hour

increase

would

cost

the

industry

$148,000,000 a year in
wages. A 19y2c increase demanded
by the steel union would cost
about $193,000,000 a year. On the
basis of 56,000,000 tons of finished

the approximate amount
produced in 1945, a price increase
of $4 a ton would net the steel in¬
steel,

dustry about $224,000,000 a year,
v
;
"Since the price increase was
demanded

to

cover

accumulated

exclusive of any new wage

costs

cars

would be

sub¬

after the end of the stoppage

in demurrage to $1.20
day for the full term of the
suspension.

per

"Some

consumers later in the
week actually lifted prior suspen¬
sion orders in their urgency to get
in steel scrap.
Some consumers

held that regardless whether the
strike

developed

would

have to curtail their melt

they

probably

within another month because of

of

increase,

a

wage

period

over a

operations, will likely request
sort of a subsequent
price

some

adjustment.

This is reflected by
persistent efforts of consumers of
many products, especially of light
flat-rolled steel, to get on mill
books despite extended deliveries.
Various mills refuse to accept fur¬
ther borders for the present as they
can

plants in preparation for

specifications would
before shipment.

has

made

itself

even

though

back

into

as

no

felt

units

as

week,
rushed

were

production

possible.

this

strike

quickly

Even though there is

strike next

may,
same

in

week, the industry
areas,
suffer the
of a slowdown again

some

type

by the end of this week."
The

American

Institute

on

Jan.

Iron
14

and

Steel

announced

that telegraphic reports which it
had received indicated that the

operaing rate of steel

companies

having 94% of the steel capacity
of the industry will be 76.5% of




firm promises

no

that

record

tons

in

be

output

1944.

of

end of the war and

1944
in

1945

tonnage

was

well

of

was

poorest

of the

"Commissioner

of

*

The

proposed opening of
was referred to in
issue of Dec. 20, page 3051.

Exchange

the
our

the

in

our

business

reconversion

loans

program
The bank is

as

gained
lending

to small and large con¬
in businesses of many kinds
and in every section of the United
States. Competition among banks
money

banking service to the nation as
a

He added:

whole.

"The quality of bank assets now

Secretary Vinson made public
Jan. 9 the appointment of Ed¬
Kilby as Commissioner of
the Public
Debt, Treasury De¬
partment, to succeed William S.
Broughton, who retired on Dec.
31 after over 45 years of Treasury
service. Mr. Kilby, a career Gov¬
ernment employe, first came to
Washington in 1917 as a cleark in
the "War Department.
Soon after
enlisted in the Army, and served

during the remainder of hostilities
with

the

Seventh

Anti-Aircraft

Sector in France.

Following his
discharge early in 1919, Mr. Kilby
came to the Treasury Department.
He

was

named Associate Commis¬

sioner of the Public Debt

on

June

11, 1944, after ten years as As¬
sistant Commissioner. Mr. Brough¬
ton, the retiring Commissioner,
received his appointment to the

post

in

1919,

following

shortly

creation of the Public Debt Serv¬

ice, as the Bureau was called
prior to 1940, to handle the in¬
debtedness
War I. He
of

incurred

was

absence

during

career—in
served

as

in

•

World

grarited two leaves
his

1908-1909
fleet

pay

Treasury
when

dark

on

he
a

battleship cruise around the world,
and in 1910 when he supervised
the

census

for

the

District

of

Columbia.

high and bankers will do their-

17,884,091 tons.
was
i

6,084,929 tons,

est of the

one

year." f0

1.25%, the

was

same

rate as

with 1.18% in

1943."

As to expenses, we
quote as
follows from Mr. Aldrich's report:

1945

to

reference

investments,

earn¬

ings, dividends, arid augmentation
of capital accounts are wise from
the standpoint of the owners of
the

banks, their depositors, and
in maintaining
sound banking structure."

the public interest

of

resumption

grad¬

international

trade at the- end of the war was

immediately
reflected
in
in¬
creased activity for the foreign

department.

With the reopening

communications
throughout the world many bank¬
ing connections have been re¬
established and our field of op¬
of cable and mail

in

than

1944.

Increases

in

salaries in the lower brackets and

higher costs of supplies were the
principal items of additional op¬
erating expense.
"Because of requirements for
substantially larger provision for
income taxes, the total expense's
of

the

16%

bank

in

1945

were

about

higher than in 1944.

Pay*

ments of the annual assessment to

the
Federal
Deposit
Insurance
Corporation in 1945 were $2,892,*000, bringing the cumulative total
of those payments since its in¬

ception in 1934 to $22,895,000."
The report

has the following to
dividends:

say as to

"Dividends aggregating $10,360/-

000,
on

or
the

$1.40 per share, were paid
stock of the bank during

1945, 70 cents per share on Feb.
1 and 70 cents per share on Aug.
1. On Dec. 26, 1945, the board of
directors
the

authorized
rate

increase
from $1.40

an

dividend

$1.60 per share annually by
placing dividend payments on a
quarterly basis and by declaring
a dividend of 80 cents per share,
40 cents per share payable on
Feb. 1, 1946, to stockholders of
record Jan. 11, 1946, and 40 cents
per share payable on May 1, 1946,
to
stockholders of record April

to

12, 1946.

/

,

:

"Over the 11-year period, 1935-

1945, the shareholders have re¬
ceived ; in cash dividends $ 15.40

share, equal to 60% of the
earnings on
a per share basis, leaving 40% as
the addition to capital funds. This
record compares favorably with
that of other representative banks
per

bank's aggregate net

here and in the nation

as a

whole.

"The capital funds of the bank,

$300,240,000
at
the
year-end,
which is the equity of the share¬
holders, have increased by 77%
since the beginning of 1935."
The bank's net earnings for the
year

$26,540,000 ($3.59 per
compared With $22,382,$3.01 per share in 1944.

were

share)

000, or

erations has been broadened.

"Foreign-owned deposits with
Chase steadily accumulated

the

during the final period of the war
to the highest total yet reached.

1,406,238 Railroad
Workers in November

policy of the Treasury De¬
Employees of Class I railroads of
partment : to release blocked ac¬ the United States, as of the midr
counts as rapidly as possible stim¬ die of
November, 1945, totaled 1»ulates the use of this foreign pur¬
■406,239, a decrease of 0.09% com¬
chasing power in the acquisition
pared
with
the corresponding
of American goods and helps re¬
month of 1944 and 0.69% under
store normal banking and trade
October, 1945, according to a re¬
relations
between
the
United
port just issued by the Bureau of
States and other countries."
Transport Economics and Statis¬
Regarding the bank's earnings- tics' of the Interstate Commerce
the report says;
^
Commission.
"Aggregate net earnings for 1045
A
decline
under
November,
were $3.59 per share.
Net earn¬
1944, is shown, in the number of
ings from current operations, af¬
employees for every
reporting
ter provision for taxes, amounted
group with the exception of exec¬
to $2.36 per share.
Profits from
utives, officials, and staff assist¬
the sale of securities were $1.23
ants; maintenance of way and
per share, after making allow-?
structures,
and
transportation
ance for the proportionate amount
(other than train, engine, and
of the provision for taxes Applic¬
yard), which show increases of
able to security profits.,: In pre¬
1.92, 3.09, and 2.35%, respectively.
vious
years, ; the
provision for The
percentages of decreases are:
taxes was applied entirely against
Professional, clerical, and gen¬
current operating earnings.^
"Interest received from invest¬ eral, 0.79%; maintenance of equip¬
ment and stores, 0.82%; transpor¬
ment in United States Govern¬

The

,

.

obligations was the major
of gross income earned last
year by this bank, as it was for
of the low- .banks
generally.
The average
rate
of interest earned
on
our
source

December output

1915

in

ment

best

total investments and loans in

on

in 1944, compared

utmost to maintain that condition.

ual

on

1.06%

But commercial banking involves

Mr. Aldrich notes that "the

win L.

in

compared with
in 1944 and .86% in 1943.

"Expenses incurred for current

cerns

a

Kilby Commissioner of Pub#
Debt, Treasury Department

securities

these

1.09%

The over-all interest rate earned

industrial

*

quotation
of 99-100,
railway 3% at approximately 102,
1938 3 per cents at the same price,
arid old 2% percents at 84.

of

was

purposes

momentum.

is

estimated

1945

production for
operations of the bank (hot in¬
declined during the
cluding provisions for taxes and
year, loans were paid off by many
the assessments paid to the Fed¬
companies, but in the final weeks eral
Deposit Insurance Corpora¬
of the year there was a sharp in¬
tion) were about 8% higher ift
"As

war

•

refused.

holdings

collateral.

>

made

at

About half of the bank's
portfolio consists of loans
generally regarded as industrial
and commercial credits, and the
remainder is largely made up of
loans against securities pledged as
loan

"Viewing the banking system as
whole, the conservative pol¬
Among Government loans traded
icies
followed by the banks with
in, old 3 per cents appeared at an

in

year

the war.

a

decline

the

entered

industrial bonds.

were

drop from

above

States

United

There was taking some risks on loans if
very little trading in provincial
banks are to continue to meet
and municipal securities, although
their
responsibilities
to
our
some.
8^ %
local
obligations American system of private en¬
changed hands at prices ranging terprise. No one can foresee what
from 103 to 104 guilders.
economic changes may occur in
Some mortgage obligations were the postwar period, nor can banks
sold rit 103 guilders, while others avoid incurring some losses on
could hot find buyers at this price loans if business conditions be¬
and for still others offers .of 103 come widely depressed.
on

peacetime year in the industry's
history. Fourth quarter produc¬
tion

was

During the session it was im¬
possible to obtain any quotations

desired

steel

the

for business is keen, a fact which
is reflected in the low interest

proval of the
Quotations."

the soft coal

In spite of the

the

market

the

securities dealt in during the ses¬
sion.
All are subject to the ap¬

89,641,600

Of. this

when

Difficulty. was encountered in
rates on prime loans."
obtaining quotations, which had to
In his report Mr. Aldrich ob¬
be establisthed after the profes¬
served that because of the im¬
sional traders, in whose hands
mense
rise in deposit liabilities
most of the day's trading was con-,
during the wartime period, the
centrated,
had
determined the
banks of this country have fol¬
supply and demand position.
At
lowed a conservative course by
first only "advisory" prices based
retaining a substantial proportion
on estimates were given and when
of earnings to build up their cap¬
the
market
closed
professional
ital funds in order to provide;
traders still Were busy noting and
fuller protection to depositors and
setting quotations of the various
to
continue
the
best
possible

practically 8 million tons came in
second half, which included the
strike.

of

tone

paying bonds.

and

changes

many

(Continued from first page)
above the corresponding figure at
the end of 1944 and 59% higher
than the total at the end of 1941,

crease

The

"Output of ingots and steel for
castings in 1945 was 79,745,581 net
tons, almost 10 million tons below
the

was

tal.

of the year.

make

in

ing up 700,000 guilders of the to¬

"Confidence is strong that once
difficulties are out of the

"The slowdown in
operations
last week at many steel
company
a

traded

securities
800,000 guilders,
of

value

with Government securities mak¬

labor

believe

(Nether¬

the declaration of World War I he

prevail for most of the remainder

the effects of

Nominal

insufficient scrap.

from

er gaging
and price

advices

Amsterdam

Agency), published in
the New York "Times," which also
had the following- to say:

for

reduction

way highly active conditions will

a

in

lands News

regulations, by which a consignee
whose plant is forced down by
strike can appeal within 30 days

agreement, a wage increase of
19V2C an hour would leave little
$4 ton advance in price.
This is the reason why it is ex¬
pected that the steel industry, aft-

;

strike-bound

ject to relief under master tariff

are now.

"On the basis of

only funds in frozen and
"giro'' accounts could be used in
transactions.
This was reported

convert frozen funds into interest-

"Working under the uncertain¬
ties of threat of a general strike

a

price

and

demand exceeded supply because
of the desire of many persons to

follows:

as

Government securities

and

good, with prices called "not dis¬
appointing." Generally speaking,

production for armament have
been repaired and the steady rise
in output in the past few weeks
affected and whether or not it
has
indicated the
effort
being
would be an across-the-board in¬
made to meet the pressing de¬
crease.
It has been indicated, from
mand of industry in its recon¬
fore the week is

bonds

its

in

Cleveland,

officials would have its at the beginning of this week
moments.
steelmakers last week took such

stormy

7, a
tended, despite the fact that trad¬
ing Was restricted to domestic

the iron and steel
Jan. 14 stated in part

of

of

company

in

the Am¬
Exchange on Jan.
record number of brokers at¬
Stock

sterdam

The

United

criticism

"Some
States

With the reopening of

steel industry leaders agree

made last week by Benjamin

Thursday, January 17, 1946

CHRdNICLE

THE COMMERCIAL & FINANCIAL

298

tation, (yardmasters,
ers,

and'

hostlers),

transportation

(train

service), 3.05%;

switchtendand

1.89%,

and engine

Volume 163

Number 4456"

THE COMMERCIAL & FINANCIAL
CHRONICLE

clined;. in; the preceding week 6 advanced and 9 declined; in
preceding week 9 advanced and 1 declined.
S:
;-

Moody's Bond Prices And Bond Yield Averages
Moody's
computed bond

given in

the

prices

and bond

yield averages are

WEEKLY

WHOLESALE

Compiled by

COMMODITY

PRICE

MOODY'S BOND PRICES

:

1940-1-

U. S.

•Daily

Govt.

Averages
Jan.

;

15

•>

__

14
12_._._._

.

,

<

•

10

Avge.
Corpo¬

Corporate by Ratings*

Corporate by Groups*

Bonds

rate 1:1

A

Baa

126.24.

118.40

122.2.9

120,63

118.40

112.75

126.24

118.40

122.29

120.63

118.40

126.18

118.20

122.03

120.63

118.20

112.56

115.04

118.40

121.46

i26.ll

118.20

122.09

120.63

118.20

112.56

115.04

118.40

121.46

126.00

Aaa

Aa

112.75

v

Cottonseed Oil—

115.24

118.60

121.67

121.88

120.22

118.20

112.56

114.85

118.40

121.25

118.20

121.88

120.22

118.20

112.56

114.85

118.40

121.25

121.67

120,22

117.80

7

112.56

114.85

118.20

121.04

125.30

118.00

121.67

120.22

117.60

112.56

118.20

120.84

5

114.85

125.22

117.80

121.46

120.02

117.60

112.37

114.66

118.00

.4

120.84

125.18

117.80

121.67

119.82

117.80

120.84

117.60

121.67

119.82

117,60 ,112,37
117,40
112.19

114.66

125.03

114.46

117.80

120.84

124.97

117.60

121.46

119.82

117.40

114.46

117.80

120.63

Dec. 28.

1945

124.67

112.19

117.40

.

121.25

119.82

117.40

112.00

114.27

124.28

117.2vO

121.04

119.41

117.20

111.44

114.08

117.20

120.22

124.17

117.00

120.84

119.41-

117.20

111.25

113.89

117.20

100.22

7

124,06

116.80

120.63

119.41

Nov. 30

117.00

110.88

113.50

117.00

120.22

123.81

116.80

120.63

119.41

117.00

110.70

113.31

117.00

120.22

123.70

116.80

120.84

119.41

117.00

110.70

113.50

116.80

120.22

116.80

120.84

23

123.44

-

.

Oct.

119.41

116.80

110.52

113.31

116.80

9———-

123.28

116.61

120.63

119.41

116.61

110.34

113.12

116.80

2

123.05

116.61

120.63

119.41

116.41

110.15

113.12

116.80

1

—

26

122.92

120.02

120.02

116.22

120.63

119.20

116.22

109.60

112.93

116.41

119.82

116.02

120.84

118.80

115.82

108.88

Aug. 31___i._,_

112.19

116.02

119.82

122.09

116.02

120.84

119.00

116.22

July

108.52

119.41

115.82

.112.56

116.02

122.39

120.84

119.20

115.82

108.16

112.93

115.63

119.00

27

June 29—1

122.93

116.02

121.04

119.20

116.02

108.16

112.93

115.43

119.41

May 25

122.29

115.43

120.63

118.80

115.43

107.44

112.19

114.85

119.20

Apr. 27

122.38

115.24

120.84

118.40

115.04

Mar. 31——122.01
Feb. 23—
121.92

107.09

112.19

114.27

119.20

114.85

121.04

118.40

114.85

106.04

111.25

118.60

114.46

Jan.

106.04

110.52

Low

114.27

-

119.20

114.66

120.02

114.08

119.41

120.88

113.89

119.41

118.00

113.70

105.17

109.24

113.89

118.60

126.24

118.40

122.29

120.63

118.40

112.75

1946——

115.24

118.80

121.67

124.97

117.60

121.46

119.82

—

117.40

112.19!.

114,46

117.80

120.63

1945——

124.84

117.60

121.25

119.82

117.40

112.00

1943-——

114.46

117.60

120.63

120.55

113.50

118.80

117.80

113.31

104.48

108.52

113.70

118.20

113.70

118.40

High
Low

:

1946.1—

26

High

-'1 Year Ago

Jan.

,*2

15, 1945—

121.16

113.70

119.00

119.57

111.25

118.60

117.80

113.50

105.00

109.06

116.41.

111.25

99.84

104.14

113.50

116.61

MOODY'S BOND YIELD AVERAGES

(Based

;

1946—

U. S.

Daily
Averages

Bonds

Jan.

Avge.
Corpo-

Govt.

15

1.32

14_

1.32

,

2.73

2.54

2.62

2.73

3.02

2.89

2.72

2.57

100.0

Jan. 13,

133.5 ;?

133.5

133.4

159.2

159.3

Metals—————j——..
110.2
xxu.a
Building materials—160.4

110.2

110.2

105.8

158.4

154.7

154.1

and

——

drugs——

127.0

119.9

119.9

119.9;

105.2

105.2

105.0

104.8

machinery———

combined————.

1926-1928 base

on

were:

12, 1946

Jan.

12,

3.03

2.91

2.73

2.59

2.91

2.73

'2.59

3.03

2.91

2.74

2.60

2.77

3.03

2.91

2.74

2.61

Oct.

2.77

3.04

2.92

2.75

2.61

2.76

Oct.

13—

2.76

2.57

2.64

2.65

.

2.57

2.66

2.77

3.04

2.92

1.40

2.77

2.57-

2.66

2.78

3.05

2

*2.93

1.40

2.77

2.58

2.66

2.78

3.05

2.93

Stock
-

21_^'iv—14

1.42

2.78

2.59

2.66

2.78

3.06

2.94

1.45

2.79

2.60

2.68

2.79

•3.09

2.95

1.49

.

2.79

2.64

3.10

2.96

2.79

2.64

Dec.

1

3.12

2.98

2.80

2.64

Dec,-

8

2.68

2.80

3.13

2.59

2.80

2.64

Dec.

2.80

3.13

2.98

2.81

2.64

2.81

2.64

2.68

2.82

3.15

3.00

2.81

2.65

2.83

3.16

3.00

2.81

2.65

3.19

3.01

2.83

2.66

1.56

2.84

2.62

2.69

2.84

19—

1.55

2.84

2.62

2.69

2.84

3.20

3.02

ii_

2.83

2.66

1.57

2.04

2.61

2.70

2.84

3.20

3.03

2.84

2.65

2.84

2.65

Sept. 28

1.63

2.85

2.61

2.71

2.86

3.23

3.05

2.85

Aug, 31

2.66

1.65

2.85

2.61

2.70

2.84

3.25

3.03

1.64

2.85

2.68

2.86

2.61

2.69

2.86

3.27

June 29

3.01

2.87

2.70

1.60

2.85

2.60

2.69

2.85

3.27

3.01

2.88

2.68

May 25

1.64

2.88

2.62

2.71

2.88

3.31

3.05

2.91

2.69

Apr, 27

1.63

2.89

2.61

2.73.

2.90

3.33

3.05

Mar. 31

2.94

1.66

2.69

2.91

2.60

2.73

2.91

3.39

3.10

2.94

2.69

Feb.

23

1.69

2.92

2.65

2.72

2.93

3.39

3.14

2.95

Jan,

26

2.68

1.77

2.96

2.68

2.75

2.97

3.44

3.21

2.96

2.72

1.40

2.77

2.58

2.76

1946
1946

Lew

1945

1945—

2.66

2.78

3.05

2.93

1.32

2.73

2.54

2.62

'2.73

3.02

2.89

2.71

2.57

1.80

2.98

2.71

2.76

2.99

3.48

3.25

2.97

1.41

2.77

2.59

2-74

2.66

2.78

3.06

2.93

2.77

2.62

1.75

2.97

2.70

2.76

2.98

3.45

3.22

2.97

2.73

2.62

3,841,350
4,042,915

15

4,524,257
4,538,012
4,563,079

Dec.

22

4,239,376

4,616,975

Dec.

29

3,758,942

4,225,814

:

Uliu

.

NOTE-

lssue

of

The
the

list

used

"Chronicle"

in
on

compiling the averages
page

was

given

2508.

Jen.

1946

_

5

*3,865,362

Jan. 12__

$4,170,000

Jan.19
Jan

26

Feb.

in

the

Nov.

22,

1945

9.6
9.9

—

9.7

1932

4.452,592

•—l0.5n '4,413,863

—12.1

—10.6
9.0

4,560,158
4,566,905
4,612,994

8.2

4,295,010

—11.0

4,337,287

—

—

—

9.7

'Revised.

.

,

,

:

Commodity
Fractionally Higher

Prices

mixed during the latest week
with the result that
the farm products and food groups declined and the
building material
index advanced.
The decline in the farm
product group was frac¬
tional; each of the three subgroups shared in the decline. The cotton
index declined slightly.
The grain index was
were

slightly down with
lower oats quotations a little more than
offsetting higher rye prices.
The livestock index was only slightly
lower, the net result of the
declines.registered in lambs, sheep, live poultry and eggs a little more
than offsetting higher quotations for cattle and
hogs. The food

group
declined because lower prices for eggs and
potatoes more than offset
increased prices for flour and dressed fowl.
The building material
index moved up rather substantially
during the latest week reflect¬
ing increases in the prices for crushed stone in New York and
gravel
tit St. Louis.
All. of the other groups in the composite index re¬

mained unchanged.

During the week 9 price series in the index advanced and 7 de-




\

available for purchase,

1929

1,507,503

1,806,403

1,528,145
1,533,028
1,525,410

1,798,633
1,824,160
1,815,749

'T,520,730-,M

1,798",164
1,793,584
1,818,169
1,718,002
1,806,225

1,563,384
1,554,473
1,414,710
1,619,265

under 1945

1944

—12.7

4,567,959
4,539,083

—

9.6

-

"large-scale

ly inflationary in their effect upon
the general, price level"

Assistant Di¬

Lindow,

Wesley

and Statistics

of Research

rector

for the Treasury; declared that at
the close of 1945 individuals held

total of $181
assets,"
an
explained, equal to

"the unprecedented
in
liquid

he

holdings

their

times

six

Charles H. Kellstadt, Chairman

1,840,863
1,860,021
1,637,683

1,542,000

Association

Better

of

asserted that
"upon the intelligent expenditure
and investment of money depends
the economic prosperity, of our
country for yeats to come. He ;
spoke of "the immediate threat to
Bureaus,

the economic security

of our coun¬

try and to the American people
as a whole' in
the possibility of
'a wave of swindling, gyp schemes
and fraudulent practices descend*

ing upon us and robbing us of the
right to employ our money wisely
and usefully."
~

Mr. Kellstadt recommended that
1932

1929

1,602,482
1,598,201 •>

4,531,662

1,588,967;

4,523,763
4,524,134

1,588,853 «
1,578,817

' organizations
"aid
establish principles

cooperating

1,733,810
1,736,721
1,717,315
1,728,208

1,726,161

^Preliminary.

to

business

policies of fair dealing, main¬
contimious advisory service

and

tain
to

business

help

in its consumer

the

protect

relations,

public

against fraud and deception in ad¬

Moody's Common Stock Yields

and selling, help

vertising

For yields in prior years see the
following back issues of the
"Chronicle": 1941 yields (also

annually from 1929), Jan 11, 1942,
221-8; 1942 levels, Jan. 14, 1943, page 202; 1943 yields, March 16,
1944, page 1130;
11944 yields, Feb. 1, 1945, page 558.

page

sumers

to get maximum

tion from their relations

and educate

iness

buy

invest

and

con¬

satisfac-*

with bus¬

the public to

and use

wisely

thriftily"
Average

Industrials

Railroads

Utilities

(125)

(25)

(25)

January,

1945_

4.4

.

4.2

March, .;-1945-—l.—.»
April, 1945
May, 1945
June,
1945
—

Insurance

Yield

(15)

(10)

(200)

6.3

5.2

3.3

3.6

4.6

5.9

5.0

3.3

3.4

4.3

4.4

6.2

5.1

4.1

5.5

4.8

5.5

4.1

Banks

3.6

3.4

,

3.5
„

;

3,4

4.7

3:4

3.3

4.1

5.3

4.6

3.3

3.4

4.2

,5.6

4.5

3.4

3.4

•4.3

1945-—-—

3.9

5.7

4.5

3.4

3.4

4.1

1945—______
Oct., 1945—
Nov., 1945 •
Dec., 1945

3.8

5.3

4.3

3.4

July,

1945——.-—

Year

_

3.7

)

3.6

3.6

tions membership in the Far-East¬

4.2
ern
-

5.2

4.2

3.1

3.1

4.0

3.2

3.*

4.8

4.1

3.3

3.1

3.8
,

Commission set up by

of the recent three-power

.

decision

Foreign^

Ministers Conference in Moscow,

3.9

4.8

accepted with reserva¬

France

4.6
4.3

4.1

„

France in Far East Group

<

-

Associated

the

reported

Press

3.7

"

4.0

5.5

3,3

Jan. 5, adding that

3.7

from

4.1

France had requested

Paris,

the United

States! Britain and Russia to allow

The weekly wholesale

commodity, price index compiled by The
National Fertilizer Association and made
public on Jan. 14, advanced
fractionally in the week ended Jan. 12, 1946 to
142.1, from 142.0 in
the preceding week.
A month ago the index stood at
142.0, and a
year ago at 139.9, all based on the 1935-1939
average as 100.
The
Association's report added:

.

redemptions and spending of the
funds received would be extreme¬

.

1945

4,538,552

Sept.,

National Fertilizer Association

'''

.

Draper warned, however,
that during the current period of
transition; and whenever there
was a shortage of consumers goods

National

,

1943

4,341,754
4.382,268
4,415,405

4,427,281
4,614,334
4,588,214
4,576,713

_

2—

Aug.,

Price Index

7.9

% Change

2 Years Ago

.Vf w*u

has been;:-.;

peace

of the Board of Governors of the

MOODY'S WEIGHTED AVERAGE YIELD OF 200 COMMON STOCKS

1.86
3.10
.1 2.72
15, 1944—
2-83
;
3.10
3.76
3.50
2.98
2.82
•These prices are computed from average
yields on the basis of one "typical" bond
<3%% coupon, maturing in 25 years) and do not purport to show
either the average
level or the average movement of actual
price quotations,
They merely serve to
Illustrate in a more comprehensive way the relative
levels and the
VAAC
ICidl.
relative movement
of yield averages, the latter being the true Dictara nf tho
picture of the bond market.

to

transition

the

accomplished."

•

Week Ended—

Jan.

w

—

4,354,939

4,096,954
4,154,061

1 Year Ago

Jan. 15,

—

1,475,268
.1,510,337
1,518,922

2.68

Lew

3,934,394

4,375,079
4,354,575

4,513,299
4,403,342

2.62

High

4,028,286

under 1944

—10.5

2.62

High 1945

1944

4,450,047
4,368,519

2.82

upon monetary conditions and can
help to defeat deflationary forces
in case they should develop after

.

(Thousands of Kilowatt-Hours)

1945

3,984,608

2.82

large amount of individual sav¬
ings in the form of savings bonds
can
have a stabilizing influence

Business

17_

1.55

27

8.2

Nov.

1.53

Jul}

11.0

2.62

2.80

3.04

$12.7

1,531,584

2.79

3.21

*9.6

4.482,665

2.68

2.84

0.5
9.8

—10.2

2.68

2.70

—

3_:

;

2.62

2.61

11.6

1.2
14.1

To Change
6

2.61

2.84

15.3

4.8
20.1

4,396,595

9

1.59

14.7

0.2

16.1

3,948,024

2_

5-

2.4

0.2

10

2.68

standpoint of the
whole," he said, "the

the

economy as a

He subdivided the total
into $64 billion of Federal securi¬
ties* $54 billion of savings ac¬
counts and $63 billion of currency
and checking accounts.

0.6

Nov.

2.68

,

4.5

1.7

4,358,293

2.61

"From

years ago.

Dec. 22

2.3

4,345,352

2.61

>

Dec. 29

0.2

3,937,420
3,899,293

2.81

:

amount,

10.8

3,914,738

2.81

of the board
Federal Re¬

System.

serve

three

4.8

27,-:——

1.52

week

same

13.0

20—

1.50

.

The output for the

6.7

Nov,

16

Oct.

and 3,865,-

year ago,

7.5

Oct.

2.77

2.99

and

tRevised.

Week Ended—

w;

2.62

3.14

139.9

110.6,

14.3

DATA FOR RECENT WEEKS

2.81

2.81

1946,

4.9

Oct.

2.62

23

26

142.0

5,

11.7

2.61

•<'*

■

Jan.

Jan. 5

11.0

Preliminary.

2.81

.

142.0

110.7;

—Week Ended—-———

3.9

2.76

■">

W

*

Nov. 24

2.80

1.47

_

Nov. 30-__

Jan. 12

2.76 :■?.»; 2.6X

Exchange Closed

1.46

7

1946,

$48 billion in December by Ernest
G. Draper, a member
of governors of the

billion

Total United States—:

3.03

3_

28,: 1945

142.1

—.

.

9.6% below that of the

was

Pacific Coast—•

2.76

2.58

118.3

118.2

119.9

——

Rocky'Mountain

2.74

2.76

125.4

118.2

118.2

Fertilizers——.

Major Geographical Divisions-

2.74

2.75

127.5

Fertilizer materials——.

New England
Middle Atlantic

2.58

1.38

127.0

156.2

PERCENTAGE DECREASE UNDER SAME WEEK LAST YEAR

2.58

7—

i—

^

—

in 1945.

2.73

1.38

159.4

153.2

week ended Jan.

2.73

,

167.1

133.5

Textiles-

4,614,334,000 kwh. in the corresponding week a
362,000 kwh. in the week ended Jan. 5, 1948.

2.90

2,64

162.5

cu rent weekly report, esti¬
electricity by the electric light and
industry of the United States for the week ended Jan.
12,
1946, was approximately 4,170,000,000 kwh., which
Compares with

2.90

2.64

169.4 A
129.4

power

3.03

2.64

V"

162.3
129.4

The Edison Electric
Institute, in its
that the production of

3.03

2.57

,

207.8

mated

2.74

2.56

;

233.0

lEIecfric Output for Week Eitded Jan. 12,1946
9.6% Below That for Same Week a Year Ago

2.74

2.56

1.38

232.8

: r

Savings of individuals in Gov¬
ernment bonds were estimated at

Mr.

2.62

2.75

i.

:

159.7

1945, 109.0.

2.62

2.74

•

232.6

130.4

'All grohps

•Indexes

2.55

2.74

.

164.8

166.9

Chemicals

2.55

1.35

4

Dec

*

1.36

__

Indus.
2.57

8

5_

P. U.

2.72

1.33

'

R. R.

2.89

2.74

■

Corporate by Groups*

Baa

3.02

2.74

9

A

2.73

1.32

:&f'

Aa

2.62

1.32

10

Aaa'
2.54

12_

173.2

169.3

West Central

2.73

1^- v 11,

171.0

129.0

3outhern States

Corporate by Ratings*

rate*

160.7

;:•

Central Industrial

Individual Closing Prices)

on

144.2

144.6

163.1

•

———

m

1944,_

144.8:
146.6

163.1

—

Years Ago

Jan. 15,

143.9
146.6

170.8

Miscellan eous commodities——
'

1945

120.22

.

122.19

Bept. 28

—

15, Jan.13,

143.1

V

in this enterprise."

ner

Ago

1945

citizens will be

join with other groups as a part¬

Year

163.1

—

Livestock—
'Fuels.——--

120.63

117.60

14

.

Grains

Farm

21
'

16—

Farm Products--———.
Cotton————————

23.0

Stock Exchange Closed

-

————

5,

1946

-

118.20

_____

Dec.

146.6

.

Fats and Oils

121.67

118.00

1

Foods—,———

Indus

118.60

125.80

',""'•'..'•2

25.3

P.U.

115.24

125.55

3_,_..__;_

Ago

Jan.

1946

R. R.

9———

,

%

Week

Jan. 12,

Total Inaex

8-

.

Group

Month

preceding

Week

Bears to the

INDEX

,

Latest
Each Group

Average Yields)

the country and its

greatly enhanced by the success of
this program,
and ,the Federal
Government is indeed happy to

The 'National Fertilizer Association
1935-1939—10Q*
'
,

on

the

second

following table.
(Based

299

President Truman Endorses Program to Protect
Wartime Savings
A conference in which 300 leaders of
industry, retail business and
finance participated, was held at the Waldorf-Astoria in New York
on Jan. 9 for the purpose of
formulating plans \</make the

public

wary of fraudulent schemes which might be presented them for the
diversion of wartime savings.
The program, including educational

campaigns in schools and colleges, received the endorsement of Presi¬
dent Truman in a message whichread to the conference, ac¬
cording to a report in the New
York "Times," which continued:
was

Mr.
to

Truman

prevent

stressed the

erty of questionable
The

"a

value."
the

of enlisting the active aid
and cooperation of all groups, rep¬
resentatives of agriculture, busi¬
ness, consumers, education, gov¬
ernment, labor and veterans."
process

World War I, when un¬

scrupulous

individuals
induced
their many victims to exchange
their wartime savings for worth¬
less stocks, bonds and other prop?

or no

commended

present approach to the problem
"by the most effective democratic

need

repetition of the
disasters which fell upon the pub¬
lic after

President

The

I

Chief

Executive

added

that "the continued well-being of

with that of

her veto power equal
the Big Three

which

tions

and China on ques¬
may

arise

directly

Far-Eastern

French

concerning
interests.

Moody's Daily
Commodity Index
Tuesday, Jan. 8, 1946—

Wednesday,

r-

Jan. 9___—:

'

Thursday. Jan. 10__^_

Friday, Jan. 1.1 ______
Saturday, Jan. 12__
Monday,

:

15-____-___V^iL^',,204.7';

weeks ago,

Month

ago,

High,
Low,

1946
,

Jan. 2____

Dec. 15, 1945___

Year aRO, Jan.
1945

264.7

'264.8

Jan.:-!T4_4;_-.

Tuesday, Jan.
Two

____.

264.7
264.8
264.9
264.8

15__;

Dec.
Jan.

264.9
253.9
265.0

27

252.1

24__u

High, Jan. 10
Low, Jan. -2__

264.7

___V
—

264.9

264.7

,

Coast

(Commodity Wholesale Prices Declined 0.2% in
Week of Jan. 5, '46; Up 0.2% in Previous Week
giving herewith the figures of wholesale prices for the
week ended Dec. 29/ 1945, and those for the week ended Jan. 5, 1946.
In the latter case the Bureau of Labor Statistics, U. S. Department
We

there had been

V

The

for

Dec.

and vegetables during the week
5, 1946, were chiefly responsible for a decline of 0.2% in
primary market prices from last week's (Dec. 29) high.
At 106.8%
of the 1926 average, the index of commodity prices prepared by
the Bureau of Labor Statistics, U. S Department of Labor, was 0.3%
higher than a month ago and 2.1% above early January, 1945.
Farm
Products and
Foods—Average prices of farm; products
dropped 1.1% during the week.
Among the fresh fruits and vege¬
table, citrus fruit quotations were down sharply with increased sup¬
plies, as shippers anticipated the restoration of OPA price ceilings.
White potatoes, sweet potatoes and onions increased in price, reflect¬
ing seasonal movements and light supplies.
Apples were up season¬
ally in Chicago and Portland, but decreased sharply in New York
because of the poor quality offered.
Most livestock quotations were
higher,: reflecting light receipts;; and strong buying, : Live poultry
prices were up, due to increased ceilings. Wheat prices were season¬
ally higher while oats and rye quotations decreased.
Prices of eggs
dropped seasonally in most cities. The group index for farm products
was 0.8% higher than the first week in December, 1945, and 4.3%
ended Jan.

Farm

products

;

12-15

12-1

1945

1945

1945

1945

107.0

106.8

106.7

132.7

131.5

131.3

12-22

1945

1945

1944

>06.8

+ 0.2

"40.2

4 2.2

132.0

126.7

+ 0.9

109.5

108.G

108.3

108.5

Hides and leather products..,.

119.4

119.4

119.4

119.4

117.9

100.6

100.6

100,6

99.0

Textile products

100.6

l

85.2

85.1

105.3

105.3

103.9

Building materials

118.8

116.4

96.1

products..

.....

o

.

V 0

;f

o

+

I 96.1

94.8

-HA: 0

.<•1.4

106.4

106.1

0

'40.3

95.0

o

+ 0.4

"v 94.6

93.9

120.1

115.7

96.8

94.7

0

+ 0.1

102.5

101.3

0

+

+ 1.2

95.0
119.8

119.7

96.9

96.8

102.6

102.6

102.6

101.4

101.3

101.3

101.2

99.8

+ 0.1

+ 0.2

+

1.6

100.6

100.5

.100.5

100.4

99.1

+

0.1

+ 0.2

+

1.5

.

v

,

+ 0.7

+

0.4^
0.1

+

4.2

+

2.3

the; country,
to every

4,1.3

PERCENTAGE

1945

22, 1945 to Dec. 29,
Increases

Fruits

products—.-a

5.7
1.7

—

0.6

and .vegetables

Other

farm

Grains

...

—J

...

.

Anthracite _——____
Cotton goods
Petroleum and products————

.

—

was

and

Livestock

0.5

notation

$6,400,000,000 during the past
alone. Group life insurance,
that purchased through or by/em¬
ployers for groups of workers,
showed a greater percentage jump,
increasing by 60% during the war.

poultry

0.2

—

carried in the reports of both weeks—

however,
$8,400,000,000 with- a
slight;decrease being' recorded for:
1945 as war production cutbacks •
resulted in an over-all reduction

The amount of increase,

Jan. 5 and Dec. 29:

Statistics' wholesale price

Labor

of

Bureau

represent prices in primary markets.

most part,

in

the

<

>"

1

WHOLESALE

WEEK. ENDED JAN.

FOR

-"vVv

}<

«.

•

'

y \'

a -

y

•

.

-

_

'

,«

,

/

'

...

Jan.

:<r

i-5

Commodity Group—
y

•

-

COmmdditiesLL_i.^„w__„_.J

Firm

products./
leather

and

Textile

products.—

products.
.*
lighting materials.:—

1945

1945

1945

106.8

106.5

104.6

1946

1945

106.8

107,0

131.5

132.7

130.3x425.9

; 108.0

109.5

108.6

108.1

104.6

119.4

119.4-

119.4

119.4

117.9

100.6

100.6

,99.0

100.6

100.6

85.2

V. 85.3

85.2

85.2

83.6

105.3

105.3

105.3

103.9

Building materials......:

119.1

118.9

118.8

118-7

116.4

Chemicals

96.1

96.1

.f—-i,

96.1
106.4

106.4

106.4

Miscellaneous commodities..—

95.0

95.0

95.0

120.6

J.19.8

and

Metals

metal

and

allied

and

Housefurnishing
Hav.-

products.^
products..

goods.

materials

W-—...

Semi-manufactured articles
Manufactured
All

„

products

commodities other than farm

96.1.

1-6

1945

1945

1945

—0.2

+0.3

+2.1

/--rl.l.
■

■

0.1

■

0

.

+

4:0.8

—1.4

.y'-.o;v W'
—0.1
0

0

+14

0

"■+ x.6

0

+ 1.9
+ 1.3

0.

+ 0.2

4.3

+ 3.3
.

+ 2.3

+ 0.3
0

+

106.4

1064

0

+ 0.3

94.6

93.9

119.1

115.4

o

—0.7 ^

1.3

+ 0.4

+

1.2

3.7

+ 0.5

+

96.9

96.9

96.9

96.8

94.7

0

+ 0.1

+ 2.3

102.6

102.6

102.6

102.5

101.3

0

+ 04

+ 1.3

+04

+ 1.5

0

+0.1

f

119.7

:

,

.

161.4

101.3

101.3

100.6

100,6

100.5

100,5

...

12-8

94.9

products
....
101.4
All commodities-other than farm"!^

■/ products and.foods

5, 1946 from—

12-29

105.3

Hue!

.

-

1-6

12-22

131.3

Foods
Hides

12-8

12-29

PERCENTAGE CHANGES

99.9

;

1.5

-

; ;

Pec. 29, 1945 to Jan. 5, 1946

.

Increases

Livestock

and

poultry...............

'a

s'

v

'

"V:.

Fruits

and

1.2

Other building materials

Grains—.__._l.__

'

"■
...

6.3

Other foods

2.8

Petroleum and products.

vegetables.

0.7

_

r

„

i,o

0,2

The

Bureau's

report, issued Jan. 5, covering wholesale prices
for the week ended Dec. 29, 1945, is given herewith.
-

?

Higher prices for agricultural commodities caused a rise of 0.2%
during the week ended Dec. 29, 1945, in the index of commodity
prices in primary markets prepared by the Bureau of Labor Sta¬
tistics, U. S. Department of Labor. At 107.0% of the 1926 average,
a new post-war high, the index was 0.2%
above a month ago and
2.2% above late December, 1944.
Farm

Products

advanced

generally

January

of

higher.

grass-fed animals moving to
rose

ucts

0.5%

were

on

Quotations for sheep ad¬
quality available and live poultry
holiday buying.
Average prices for farm prod¬

above

sponding week of last
v/

four

week

year.

.

ago

and

4.7%

above

the

corre¬

.

The increase of nearly 6% in average prices for fruits and vege¬

tables

1942

A

1943

1944

1,569,115
1,562,488
1,869,642

—

-194!

1,685,993

1.738.893

1,682,454

1,145,592

1,691,592
1,772,397

1,616,587

1,548,451

.1,009,256

1,780,938

1,720,366

931,905

1,722,845

1,756,797
1,776.934

1,630,828

1.758.894

1,706,543

1,687.674
1,745,295

1,084,057

1,602,883

1,737,769

1.552,663

1,834,127
1,774,068

1,668,637

1,209,684

1,608,994
1,332,180
1,321,576
1,290,358
1,346,407
1,459,803

1,754,525
1,743,485

1,660.762

1,765,749

1,704,289

1,788,650

1,666,667
1,753,665

1,296,887
1,455,604

1,733,602

1,664,577

1,703,570

1.664,227

1.392,838

1,774,969

1,794,968

1,787,501

1,851,279

1,572,408

1,743,753

1,660,594

1,719,624

1,665,545
1,849,635

1.624.186

1,767,600

1,425.352
1,544,623

18,484,277

21,150,788
*98,609

20,244,830

21,064,157

<-97,214

*449,020

20,458,937
*42,333

June

—

'
.

September—.—
October
December

,

.

1,874,795

907,904

1,846,036

increase of

flation.

"Total assets of all U.S. compa¬
Total

Yearly

by mos.
adjust—

14,976,110

nies reached

37,639

end
Total
•Decrease.

1

15,013,749

year

1945, are sub-

ment

1939.

Weekly Statistics of Paperboard Industry
figurel

of

members

this

Association

represent

of the

83%

industry.

'

j

<

1945—Week Ended
Oct.

6

Oct.

13

Oct.

20....

Tons

«

—-

....

...

193,674

154,147-•

135.756

160,031

134,324

155,723

533,087

'201,060

156,223

511,022

157,617'

509,984
479,228

147,083

454,926

above that at the end of 1944.

Dec.

Dec.

162,023

1

i

;

8——.

J

—

•' >

152,571

95
;. 97

'

OPA ceilings.

prices

Dec.
Dec

kerosene

rose

sharply




-t-y

...

22——————;
29

Jan.

...

;

economy,

94

97

'Z-.. 94

95

94

91

94

96

94

97

94

,+

-

,'154.235

490,123

150,330

s

157,792

487,481

necessarily

ments

122,229

148,591

97,323

78,862

176,346

Notea—Unfilled

not

"

A'

/. 111,967

orders of the prior week, plus

equal

:

451,654

Z 462,446.

98

94

92

94

52

•

the unfilled

orders

at

the

'526,891/:.

.

75

•/

•

unfilled

orders.

-.

^

,

of

the heart
: *

,

'

<.

75

orders received, less production, do
Compensation for delinquent
::

Quota

"Times,'- by cable from Guayaquil,
Ecuador, stated that the Central
Bank has fixed the dollar import
at

6,000,000

first

the

for

1946. but it may in¬
9,000,000, according to a
report in El Telegrafo. The cable
auarter

-

;V" 93

closer;

.

of diseases

Advices Jan. 8 to the New York

quota

.

orders made for or filled from stock, and other Items made necessary
of

•5:

94

//> 97

472,568

,

173,537

Research

insurance

Ecuador Fixes Dollar

94
94

~

5.....—

reports,

finder higher ceilings permitted suppliers of fuel oil to the Atlantic

i

1946—Week Ended

Anthracite continued to rise
for

15_

.

*98

•

-

Dec.

;

93

...96.

■

468,549

154,122

Seaboard

nation's

Medical

life

and arteries,"

Activity

/

«>",>;■

506,935

123,781
172,297

fractionally.-- Eastern

representative cross-

Current Cumulative

'

489,971

•

156,551 V:

140,583

3——

Tons

v

-

-

Oct. 27

Nov.-

Tons-, f;

.

Percent of

Remaining

Production

the

the field

Unfilled Orders

Orders:"

Received

Period

123,281

with higher

a

the

of

Fund
companies
was one of the
important events
of the past year/ Aggregate funds
of $3,500,000 are to be provided
by these companies over the next
six years to finance research in

>

24

moved up 0.1% during the week to a level 1.5% above the
corresponding week of 1944.
Mill prices for Northern lumber rose

in¬

an

The balance of the assets is

section

by

PRODUCTION, MILL ACTIVITY

STATISTICAL REPORTS—ORDERS,

;

Nov.

foods

is

This

$15,000,000,000 since

invested in

surance

total

industry, and its program includes a statement each week from each
member of the orders and production, and also a figure which indi¬
cates the activity of the mill based on the time operated.
These
figures are advanced to equal 100%, so that they represent the total

17—

products and

over

-

The

10

Other Commodities—Commodities other than farm

of

including $10,800,000,000 in the se¬
curities of business and industry.
"Establishment of the Life In¬

received by us from the National
Paperboard Association, Chicago, 111., in relation to activity in the
paperboard industry. . • .
'
\l ' '
•1 ''
We give herewith latest

or* over

securities.

■

crease

than

more

45%, is
United States Govern-,

invested in

during* the

adjustment reflecting annual tonnage reconciliations.

$44,700,000,000 at the

1945, of which

of

$20,000,000,000,

L

,

Note—The monthly shipments as currently reported
leet to

20,416 604

20,615,137

20,147,616

21,052,179

Nov.

'

$12,700,000,000 set aside

pol icyholders, an increase in
their policy values and an effec¬
tive aid in the battle against in¬

for

'

Nov.

was

4%

iciel in force increased to $38,500,/
000,000 at the close of l945, a new
all-time peak, 49%' greater. than
the aggregate at the close of 1939
of $2d,800,000,000,
This is a net

1,797,987

responsible for the rise of 0.8% in the group index for
foods.
In addition, both rye and wheat flour rose during the week.
These increases brought the group index for foods to a level 3.8%

about

1940

v

1,730,787
1,755,772

April

market.

vanced with few animals of lower

quotations

$2,680,000,000, repre¬
benefit payments under
millions of policies arid1 tdt h
widely ' varied dse~ in fnniidhs of
homes. Death benefits totaled $1,300,000,000 last year, a new alltime peak volume; due primarily
to the
war
deaths claims. For
the war period as a whole,: how- ever,
total death benefit pay¬
senting

May

0.9%

Apples advanced fractionally in accordance
ovith their usual seasonal movement and
orange prices rose sharply
With the disappearance of 'smaller sizes from the market.
Quota¬
tions for white potatoes increased and onion prices moved
up be¬
cause of short supplies.
Lemon prices weakened following the sharp
increase of the previous week:
Quotations for eggs declined season¬
ally.
Cattle prices moved downward because of a larger number
were

war

alone// these payments

1945

For

and

Foods—Primary market prices for farm
during the week, chiefly because of the
.effect of bad weather on supplies and increased demand caused by
holiday buying.^ Quotations for oats, the only feed grain available
in quantity, rose 3%.
Wheat prices increased fractionally as sup¬
plies remained short.
Market prices for fresh fruits and vegetables
products

the

■

Shipments in the 12 months of 1945 amounted to 18,484,277 net
tons, compared with 21,052,179 net tons in the previous year, a
decrease of 2,567,902 net tons.
ments
were
$6,600,000,000, r of,
The following tabulation gives shipments by subsidiaries of. which less than. 4%
were war
United States Steel Corp. monthly from' the beginning of 1940 (fig¬ death claims.
ures in net tons):
"Total reserve! behind the pol«

November

y-:

■■

the

amounted to

net tons.

August

.

payments

during

increased

aggregate paid to
American families during the six
years bei ng about $15,100,000,000.

58,392 net tons, against 51,785 net tons for 26 days in November.
/ - / As .compared - with thei.l ,767/700 net tons delivered in December,
1944/tha total last month snowed a decrease of 307,797 net tons; The
daily average shipments in December, 1944, for 26 working days were
67,985 net/t6n! - in' December, 1943, shipments were 1,719,624 net
tons, and in the same month of 1942 they amounted to 1,849,635

July
•

Other farm products,——.-.A-———
.

...

o.4

Decreases

"The flow of benefit

years,

With 25 working days last month the daily average was

March
"

,

Institute

has

.

November.

February

FROM

the

from

advices

also state:

States Steel .Corp. in December amounted to 1,459,803 net tons, an
increase of 113,396 net tons over the 1,346,407 net tons reported in

•■''tlfc-vMt '1945'

:

'

994

SUBGROUP INDEXES

IN

Subsidiaries of
United Stales Steel Corp. Higher in December
Shipments of finished steel products by subsidiaries of the United

Percentage changes to

,

Finished Steel Shipments by

.

and

$1,200,000,000 during the past year.

"5

The

1946

5.

(1926 =ss 100> i
'
(Indexes for the last eight weeks are preliminary)

<

-

PRICES

$7,100,000,000

increased"

during the entire war period,

The

for Dec.

payrolls. Indb&trial insurance*/
small-unit weekly premium

policies,

with the monthly index.
*

only

was

data,
In general,
the prices are those charged by manufacturers or producers or are
those prevailing on commodity/ exchanges.
The weekly ir^dex- is
calculated from one-day-a-week prices.
It is designed as an indi¬
cator of week-to-week changes and should not be compared directly
NOTE—The

for the

in ordinary life

year

0.2

0.1

-

The following

•.

and

0.3
0.2

Decreases

Other foods

- ' /.
than half

policies individually purchased in
units of $1,000 or more.
This
branch of the business has in¬
creased $25,000,000,000 since 1939v

CHANGES IN SUBGROUP INDEXES FROM
Dec.

/;:

during the war years
insurance, the

of the gain
was

of two

average

an

family.

It is stated that more

All commpditles other than farm

products and foods..

protection

per

42.1

+ 0.2

+ 0.1

118.7

96.1
106.4

This
of almost ./

life insurance business.

family during the war years,
bringing the family average in
the U. S. A. to $4,500.
There are
now
71,000,000 policyholders in

1.3

118.8

$40,000,000,-

or

the

+ 2.0

+ 0.2

.-+0.1
:

$154,600,000,000

of

represents an increase
$1,000 of life insurance

96.9

....

.

41.6

95.0

Semimanufactured articles

,

>1.3

total

Insurance, declared on Dec. 31, m
reviewing the year's activities of

120.6

Miscellaneous commodities..—
Raw materials

Manufactured products
All commodities other than farm

o
0

record

increased to a new.

35%, since the outbreak of
World War II, Holgar J. Johnson,
President of the Institute of Life;

4.7

96.1

,

106.4

4 0.9
"V;

States

000,

43.8

106.4

118.9

...

'

+ 0.8

.'4

0.5

;

83.6

85.2

105.3

Chemicals and allied products

Housefurnishing goods

'A

85.3
105.3

lighting materials—

VIetals and metal products.—.

+

United

during 1945, a gain of

12-30

12-1

1944

Foods

Fuel and

12-22

12-30

Lumber..

following tables show (1) indexes for the past three weeks,
8/ 1945, and Jan, 6, 1945,and (2) percentage changes in
subgroup indexes from Dec. 29, 1945 to Jan. 5, 1946.

/'

104.7

105.5

year ago.

a

1945

Dec. 2.9, 1945 t'rom12-29

ownership in the

Life insurance

Percentage changes to

/ Commodity Groups—

High in 1945

At New

•

^

(1926 = 100)
:/■■■■/■■•'(Indexes for the last eight weeks are preliminary)

^

The price decreases for fresh fruits and vegetables caused a
decline of 1.4% in primary market; prices for foods;
Quotations for
jye flour were higher. As a group, foods were 0.1% below a month
ago and 3.3% higher than the corresponding week of last year.
Other Commodities—Prices for other commodities were generally
stable during the week.
Higher OPA ceiling resulted in increases
for sewer, pipe and prices of crushed stone were higher.
There were
further competitive price reductions for gasoline in the mid-continent
area.
Prices of bleached muslin were lower.
The group index for
all commodities other than farm products and foods remained un¬
changed at the/level of the; previous week;; 0.1%; /above four weeks
ago and 1.5%/ above the first week in January, 1945.

•

29,

'

All commodities

prices for fresh fruits

Lower

/

DEC.

FOR WEEK ENDED

WHOLESALE PRICES
'

decline of 0.2%, while for the week ended Dec. 29
Bureau's advices regarding whole¬

1946, made known J an. 10,

.

subgroup indexes from Dec. 22, 1945 to Dec. 29, 1945.

#|

Life Insi Ownership

encourage^

rise of 0.2%. The

a

sale prices in the week ended J an. 5,
■;follow://,•///
;/////>

above

production.,/Competitive price reductions
-yy'. • y /
/
following tables show (1) indexes for the past three weeks
1, 1945 and Dec. 30, 1944, and (2) percentage changes in
to

area

gasoline continued-in the mid-continent area.

are

of Labor, reports a

Vy

for

17, 1946

Thursday, January

.THE COMMERCIAL & FINANCIAL CHRONICLE

300

crease

of

to

advices added:
The

signs

.

^

;

.

v

,

Import Control Board as¬

individual

quotas

for each

importing firm and permits will
adjust¬
Z
"V not be issued for any excess. /
,

-

Number 4456

163

Volume

'

..

....

THE COMMERCIAL & FINANCIAL CHRONICLE

..

301

increase of 15,500 tons when compared with the output
Week endepl Dec. 29, 1945; but was 300 tons less than for
the corresponding week of
1945^A|A7Vv'jft,:-:! 7A;;7^ft a-'vaa',7;vi,:
^ .<
showed

Trading

New York Exchanges w

on

The Securities and

Exchange Commission made public

for

Jam 9,

on

1946, figures showing the volume of total round-lot stock sales on the
Exchange and the New York Curb Exchange and
the volume of round-lot stock transactions for the account of all
New York Stock

ESTIMATED UNITED STATES PRODUCTION OF BITUMINOUS

A-.A

v:A/;-:7.a;V vA,:':;; ;;A;:77AAA7AA>

sion^ Short sales are
.figures^:Ki,^.J;>X::>;:M;^

Daily

15 of
2,805,605 shares, or 15.14% of the total trading of 9,264,880 shares.
On the New York Curb Exchange, member trading during the week
ended Dec. 22 amounted to 598,455 shares or 11.29% of the total
volume on that Exchange of 2,649,005 shares.
During the week ended
Dec. 15 trading for the account of Curb members of 2,805,605 shares
13.43% of the total trading of 3,817,345 shares.
M •' %\
**
'{■£ ^'V-7
ft'"/''"'ft/ 4? ^L .7' 'O \
-f
Round-Lot Stock Sales on the New York Stock Exchange and Round-Lot Stock

was

8|.

*

(Shares)

of. Members*

Account

for

Transactions

ft

'

.

based

State

10,575,000

7

1,420,000

..

il,888,000
working days

on'5.6

iJan. 5,
:P 1946 7"

Penn Anthracite—

"Total Incl. coll. fuel

tCommercial produc.

Beehive coke— A
"Includes

Jan. 6,

].

Jan. 5,-

1945

Jan. 6,

1946 AAA

>7 Jan. 9,

1945

638,000

779,000

597,000

779,000

7? 1,278,000

612,000

748,000

573,000

748,000

1,214,000

washery

73,500

89,300

63,600

and dredge coal and coal shipped
colliery fuel.
fSubject to revision.

tExcludes

by

76,600

82,800

from

authorized

truck

SRevised.

,

tOther

7,491,850

-

BITUMINOUS COAL AND LIGNITE,

BY STATES, IN NET TONS

■•■-..

(The

■/; //A;1^,;^-Aj-:^v^;fT"—

A A..

-

••

r-

•

,

/.677,070^;^';'

■

\;A

AAA- ■■'/:;

?

<

Total purchases..
Short sales—

234,459

——-—

tOiher sales—

—

Total sales

4. Total—

■//

.132,930

—.i-

A/|'

■'

■

/A ,yJ

1,142,036

tOther sales—-

.

131,000
A'AAi/'A/'/

; 1,262,000
451,000

•! 41,000

125,000,

,

A1

;

,

132,000

;

895,000

696,000

375,000

253,000

40,000

' :

3,000

24,000
3,000

112,000

106,000

'

31,000

/

A/ :

■

64,000

389,000

1,765,000

!

2,485,000
125,000

83,000
A

2,000
■■

'

.

1,819,000
96,000
3,000

-

2,000

•

81,000

126,000

165,000
42,000

345,000

892,000

1,945,000

618,000

810,000

103,000

.

A 262,000

-

A A

31,000

28,000

1,350,000
A

/

A

,AA-/■.

'•/•:'/'-'A A-/

'

'

'/'

15.90

.

A/-';

/ A'

147,000 c

and

the B. & O.

223,000
:A'v*;;.'>AA;A. A

7,100,000

in Kanawha,

166,000

§

8,433,000

-.he

Panhandle

tnd

Oregon.; *Less than 1,000 tons.

t%

Civil

•'

o

District

and

K. & M.; B. c. & G.;
tRest of State, including

Mineral,

Grant,

and

Tucker

counties.

{Includes

Arizona

a a s v v

►

,

J-

-

WEEK ENDED

DEC.

1945

22,

Round-tot Sales:

A. Total

Total for Week

i-"A.. vv:VV.r^:v:pv;l • Vvi'A.
Total sales

>2,649,005

-

.

Engineering Construction Totals
$87,971,CCD for a Long (Seven-Day) Week

A''■ ■AAA A

■>

,

"

potuad-Lot Transactions for Account of Membersi"^'
j. Transactions of specialists ip stocks; 1« wblclt

B.
'.

/'

?

■

they are regisierea—

,

'•

»

,

'

•t

♦>.-

>

Total sales

*

■
.

^

7.68

194,265

—

—

I. Other transactions initiated on, the floor—
;
Total purchases
———40,725
a.:

-

fother sales_—
Total sales--—

•<

1

*

Shortsalesi

..t\

■

;

72,740

———

-rK'>
Total sales
:'A7;-;A?7v4. Total—
Total purchases.

♦

2,700 '■

——

tOther sales.

1.36

43,830

—.

-AA/

77:

——.L«

Total sales—

A :

'

.■

11.29

are:

Total U. S. Construction——_

:

;

fCustomers'other sales

'

* Ir'' ,,V'C r Sf^i
Total purchases—

'1/

Public

91,883
v

« 3 i

1

s

)

•

1

t,

t;

V

,

'

,

■ ■

■ ■

'

■

£

s

,T

w

•

Total sales.-—

State and

v

AA A

——91,883

Construction

Federal

—:

Municipal

1

'

—

10,1946 Jan. 3,1946 Jan. 11,1945

$87,971,000
63,638,000
24,333,000
16,834,000
7,499,000

;

tin

v

all

these percentages the total
twice the total round-lot volume

calculating

; compared

with

the Exchange volume includes only
•1

tRound-lot short

rules
■

are

included

sales

with

which

"other

of

* ■ •

>

sales is
that

purchases and

sales.

are

exempted

by the

from restriction

sales."

The

for the reason

Exchange

Commission's

Copper Institute
OF

of Copper Statistics

Jan. 11 released the following statistics

on

COPPER

STATISTICS

REPORTED

BY

MEMBERS OF

;,';AINSTITUTE

■-

,

:: a

:i A

•

:

'V*

'''T.A

•

.

•'■'

..

•••'

I,-;.,v; ;!X

7'

•kA-y

'• ;

ft

v

.ft'V-.'

0; S.
A, •

^

The total production of bituminous coal and lignite

in the week
5, 1946, as estimated by the Bureau of Mines, amounted
to approximately 10,125,000 net'tons, an increase of 3,025,000 tons
over that in the Christmas
week.
It was, however, 450,000 tons
below that of the
corresponding week in 1945.
The daily average
for the week under review (based on 5.1 working days)
was, 1,985,000
tons, which compares with 1,888,000 tons: in the corresponding week
rin 1945 (which was based on 5.6 working days-).
The total output
of soft coal in the calendar year 1945 is estimated at
576.000,000
net tons, a decrease of 43,576,000
tons, or 7.0% when compared with
the 619,576,000 tons produced in the
year 1944.
'
*
•:.
Production of Pennsylvania anthracite for the week ended Jan.
5, 1946, as estimated by the Bureau of Mines, was 736,000 tons, an

•

ended Jan.

„

increase

,

of 98,000

tons, or 15.4%, over the preceding week.
When
compared with the output jn the corresponding week of 19457 there
a
decrease of 43,000 tons, or 5.5°7o.
The total production of
anthracite in the calendar year 1945 was estimated at
54,615,000. tons,
a
decrease of 14.3%, from 1944.
•.
;
was

■

.

The Bureau also reported that the estimated

hive

coke

in

the

United

States




for

the

week

.

.

production of bee¬
ended

Jan.

5,

1946

and

veterans

In

the

discussion

opening session

will

center

fi-

on

Association

of

"Financing New Home

Construction" will be the topic of
the
second
session
under
the

chairmanship of Selden W. 0strom, President of New Rochelle
Federal Savings and Loan Associ¬
ation. Plans tvill be discussed for
the pooling of funds for financing
low-rent housing as well as the

financing of large scale builders:
one and two-family units.

of

The

third
two

cover

ernment

will

round-table

subjects namely: "Gov¬
Bond

Portfolio"

and

"Property Reconversion and Im¬
provement Loans." Philip Liebschutz, President of the Columbia
Banking, Savings and Loan Asso¬
ciation of

Rochester, will preside.

The Council of Insured

Savings
currently prepar¬
ing a manual of procedure for
making Title 1 F.H.A. loans to
finance such conversion as well
to

as

is

finance

the

war-created

backlog of maintenance and re¬
pairs on residential property The
procedures, as set forth in the
manual, will be reviewed during
this last round-table session of the

Management Conference.
;{

On

the

evening

Conference

of

Dinner

Jan.

will

23

a

held

be

at which time savings association

executives and directors will hear
James C.

Downs, Jr., President of
Real Estate Research Corporation
and

"Residential

Construction

Financing Outlook for 1946,"

NYSE Odd-Lot
The

Trading

Securities and Exchange
Commission made public, on Jan.
-

a summary for the week
ended Dec. 29 of complete figures

;

showing the daily volume of stock
for

odd-lot

:

account

of all odd-lot dealers and

8TOCK
LOT

THE COPPER

special¬

AC/..;///

Dut^

i939i;^

Year

818,289

814,407

1,033,710

1,001,886

836,074

Year

1940-

992,293

Year

1941—

1,065,667> 1,545,541

Year

1942-

1,016,996
1,152,344
1,194,699
1,056,180

1.206,871

841.824

843,113

Year 1943Year

>'ear

1944—

1945—/

Jan., 1945—

A;

1945—

Feb.,

66.780

76,512

145,904

59,715
57,142

76,537

51,861

# 85,319

June,

1945-

72,271

74,377

July,

1945-

72.855

Aug.,

1945-

68,253

1945-

—12,172

172,585

: 74.469

1945.

52,121

/

218,488

o„74,392

,

+16,636

76.395

1945-

Nov.,

65,309

69,950:/

1945-

Dec.,

—48.671

67,496

1945-.:/

v

—41,417

75,564

1,636,295
1,517,842

67,726

May,

1945-

+17,785

142,772

—.

;/

65,586

62,798

•

69.127

.A-A/45,145

/•

A

6,028

—

2,454

142.

+

■

55,453

«•

63,841

—10.850

70.738

88,661

76,166

86.840

80,316

68,675
73,913
••74,425

83,478

104,104

70,218

119,973

,> 66,062

103,464

2,106

—

—

—

76.512

+

14,659

+

9,732

Dec.

—

29,

Y.

N.
••

1945

' Total
For Week
orders_r______23,031
:

663,492

of shares

Valuer

S29.021.1I2

(Customers'sales)
Number of Orders:
short

Customers'

87

sales

.."Customers'other sales.—
/

•/

2,573

total

Customers'

Number

7,065

—

18,777
18,864

sales——

of Shares:

Customers'

short

sales^-z_

2.613

"Customers'

other

sales----.

52Q.176

Customers'

total

sales-^.--

522,789
823,127,19?

5,281

—

3,592

+

8,388

'it/!
+

—

'

13.188

—

+

+

.

.

10,255

—

874

'—

16,713
67,208

—

—;.140
—

Dollar

THE

Odd-Lot Purchases by Dealers—

—130,270

1.044

161,111

• :

70,363

.

1,289

+

139,203
94,031

72,995 A
//

64.091

69,322

75,436

ON

STOCK EXCHANGE

of

Number

A

Refined

—42.608
'r—'
-

Number

Decreases (—)

159,485

307

1,643,677

1,098.788

Apr.,

1945-

134,152
48,537

A.

-

Mar.,

Sept.,
Oct.,

,

1.135,708 A 1,635,236

73,754

.

-

or

Period/; SBlister

tDomestio

Refined

Stock Increase+)

End of

to Customers; Af
Export

Production
"Crude

Free Copper

•

Week'Ended

ODD"

FOR THE

ODD-LOT DEALERS

SPECIALISTS

Odd-Lot Saies by Dealers—
(Customers' purchases)

Stocks

.

TRANSACTIONS

ACCOUNT OF

AND

: ;.A:AA'';A.;A,',,Av

Dellveries

£ Weekly Coal and Coke ProduclionStatistics

for

Savings and Loan

tRefined

•ft'!

being given to the prob¬
homes

oacing homes for veterans under
the recently amended G. I. Bill
of Rights. Chairman of this meet¬
ing will be C. Harry Minners,
president of the Bankers Federal

{jn Tons of 2,000 Pounds)

•

of

struction.

pertaining to production,; deliveries and stocks of dutyrfree copper.
3UMMARY

■■;■•-■■■

(Sales marked "short exempt" are included witlr/'other saies."

-

Latest Summary

-

members'
the

on

lems

financing the reconversion of ex¬
isting units, repairs and new con¬

sion

their

regular; and> associate Exchange members,

Including1 special partners.

on

reports / filed with the Commis¬
by the odd-lot dealers and
specialists.

90,350

*The term "members'* includes
firms and their partners.

be

$22,891,000 ists who handled odd lots on the
6,430,000 New York Stock Exchange, con¬
16,460,000 tinuing a series of current figures
3,310,000 being published by the Commis¬
13,151,000 sion, The figures are based upon

$43,295,000
26,642,000
16,653,000
14,474,000
2,179,000

-i

-

from

expected

are

Discussions will

transactions

Private Construction

,

23

Hotel-

9, 1946,

volume for the first two weeks of 1945.

engineering construction volume for the current week, last

-

ft

and federal work decreased 50%

Jan.

O.: Odd-Lot Transactions for Account of Specialists—
Customers'short sales—
—0

attend.

discuss

week, and the 1945 week

aa

301,155

——^

the

Civil

2" 7,300

Short sales—■■'•' .';■: i7,245'-'■'
tOther sales--—283,910-■<; f A

'.***•!,

•

/

to say:

below

2.25
A;"

V '

f

-

Public construction increased 41%

75,440

'

—

'''ir <>\ '"• Vr'

'-.a

;

Comparison of the first two weeks of 1946 with the first two
weeks of 1945. show that the 1946 civil engineering construction vol¬
ume total is 154% greater than in 1945.
On the same basis, private
construction is 300% greater than the 1945 cumulative figure, while
state and municipal construction recorded a 227% increase over 1945,

.

31,450

—

—

: t. Other transactions Initiated off the floorTotal purchases————

v>

-

30,900

—1--,

—

-Vf'-'V;/

'A:

engineering construction volume in continental United
States totals $87,971*000 for a seven-day week (due to preceding short
weeks during holidays) ending Jan. 10, 1946, as reported to ^Engi¬
neering News-Record." This Volume is 103% greater than the volume
reported for last week (a three-day week) and is 284% greater than
in 1945 week, (a five-day week). The report issued on Jan. 10, went
on

550

Short sales
-I'v

>"<

V"

Civil

'

„

Totalpurchases-*—-7
212,745
-Short salea^,-;-—13,995
tOiher sales—180,270

-

*

:.

Roosevelt

executives

Association

10,980,000

Mason, and Clay counties.

Stock

"•/ ,*•' ?'>•»*"

Round-Lot Stock Sales on the New York Curb Exchange
Transactions for, Account of Members* (Shares),

Total

,

.

V

1,274,966

.

on

Man¬

Jan.

on

round-table basis with principal

attention

705,000

tlncludes operations on the N..& W.; C. & O,; Virginian;
Total sales

a

23,000

75,000

655,000

lignite)

7 Total bituminous & lignite
md

Annual

■

64,000

410,000

SOther Western States.

/;/!a/a-'//-:

•«

5,000

70,000

,

40,000

A

.

3,000

Wyoming

1,161.059

———.

;

its

the

at

New York.

251,000

'

AA-/A

/;/.■.

Jt

495,000

27,000

tWest Virginia—Northern

3.57

312,066

1944

'

1,000
1,450,000

,

91,000
23,000

(lignite)—.

'/irglnia
--A
A A:
Vashington.^——
(•West Virginia—Southern

v"'/..

...

279,666

.

:

••

Short sales

1 .-

••

-

Total purchases—
/

AAA 32,400

.A

j;:/;

270,000

Fennessee^-i-^7—.
Texas (bituminous &

'

97,000

1.016,000
362,000

Pennsylvania (bituminous)

2.24

196,000

-

Dec. 30,

154,000

•

28,000
104,000
530,000

A

—

6,000

\

*

from

,

1945

6,000

river

reports
operators.)

334,000

>

75,000

:

and

tonnage

the

from

Dec. 22,

110,000

—.

Ohio

Other transactions initiated off the floof—

1.

,

j

/

185,300

Total sales

Alaska——————
irkan sas and Oklahoma—

^orth & South Dakota

10,700

carloadings

monthly

of

returns

186,000

New Mex lco-----

147,240
'•

tOther sales—

,

10.09

766,900

,

Shortsales
,

.•

llabama—w--——.—-L.—'

Kentucky—Eastern-,Kentucky—Western—-----'
Maryland-7-—:
Michigan^—
Montana (bitum. & lignite)

——————

Total Bales
—
—
t. Other transactions Initiated on the floorr-.
"
Total purchases———,.±—-w—'

railroad

on

receipt

Dec. 29,
1945

Sansas and Missouri.

69.830

.

•

on

annual

lowail——

J

-

—

tOther

,

final

Illinois

■

,

based

are

revision

of

Indiana—

yjfotai779,360
—

to

or

Georgia and North Carolina——.

,

Short sales.

sources

Colorado..——.

Except for the Odd-Lot Accounts of Odd-Lot
"-A / Dealers and Specialists:
•'
1. Transactions of specialists In stocks in which
thev are registered—>
•
-

0

estimates

subject

are

State

a'State—

'
/'
-A:/ :A-A/A;/A!//A/

Members,

Round-Lot Transactions for Account of

and

and

——-Week Ended

7,659,410

Total Bales-,--.

weekly

current

shipments

.

,

24

the
A ESTIMATED WEEKLY PRODUCTION OF

hold

Conference

New York City, About 100 savings

1937

707,000
A*

and

to

736,000

89,000
89,000

Insured

of

throughout the state

A

United States total-

rperations,.

1945

will

agement

association

Calendar Year to Date

§Dec. 29;

Council

The

1945

7,100,000

-Week Ended—

'

WEEK ENDED DEC. 22, 1945

Total.Round-Lot Sales:
Total for Week
>'A/rShort sales--.-.——--r—167,560
A.

L

1945

10,125,000

Savings Ass'n

to Hold Conference
Savings Associations of New York

Jan. 6,

(In Net Tons)^

j

district

.

'7

,

Total

8.

"Dec. 29,

1945

•

,

fuel———

Insured

V

Week Ended

...

ESTIMATED PRODUCTION OP PENNSYLVANIA ANTHRACITE AND COKE

on

with member trading during the week ended Dec.

compares

lignite—

mine

ft-A

;;
■

::;:Jani5r;A

average
——11,985,000
"Revised, tAverage based on 5.1
working days, tAverage

the Stock Exchange for. the account of members
(except odd-lot dealers) during the week ended Dec. 22 (in roundlot transactions) totaled 2,436,025 shares, which amount was 15.90%
of the total transactions on the Exchange of 7,659,410 shares.
This
f Trading

including

COAL AND LIGNITE

.•

.

Eituminous coal and

Total,

the Commis¬
shown separately from other sales in these

Un Net Tons)

:;V:'v'A-.-AA;A'A:'-''A:.-

ing a series of current figures being published weekly by

.W

'

.

1945, continu¬

members of these exchanges in the week ended Dec. 22,

the

6,897

Dollar -value.

Number of Shares:

5,428
4,150

18,946

11,641

1,041

5,238

4.632

512

3,264

2,087

-

Round-Lot Sales by Dealers—
'•

Shortsales

-

•'

—

''

tOther; sales.-'-—A
// Total

■

sales/—•..u.

Round-Ix)t Purchases by Dealers—
A. Number, of

.shares_-,-_v-i.7.__

30

'"A' 80,240
80,270
: / •

237,360

production or shipments, and custom Intake Including scrap. %
•Sales marked "short exempt" are re¬
tBeginning March,
1941, includes deliveries of duty paid foreign- copper for
ported with "other Sales."
domestic consumption.
m
//A/;
tSales to offset customers' odd-lot order*
.iAt refineries on consignment and in exchange warehouses, but not
includm0
j and sales to liquidate a long position which
?onsumers' stocks at their plants or warehouses.
/■ •//■
A
i is less than a round lot are
reported wltfti
^Computed bv difference between mine end refined production.
•
•Mine

or

smelter

,

.

..

■

offW.'mnnth

r,r

Mr.ufmhcr

1945

...

.

have

been

revised.

__

"other sales."

;•

■

week ended Jan. 5, 1946 was
4,548,100 barrels, an increase of 74,200 barrels per day over the pre¬
ceding week and 6,100 barrels in excess of the daily average figure
of 4,542,000: barrels recommended by, the Bureau of Mines for the
month of December, 1945.
The current figure, however, was 130,450
barrels per day below the output for the week ended Jan. 6, 1945.
Daily production for the four weeks ended Jan. 5, 1946 averaged
4,504,100 barrels. Further details as reported by the Institute follow:
Reports received from refining companies indicate that the Indus-*
try is a whole ran to stills on a Bureau of Mines basis approximately
4,651,000 barrels of crude oil daily and produced 14,488,000 barrels of
gasoline; 2,201,000 barrels of kerosine; 5,293,000 barrels of distillate
fuel, and 8,867,000 barrels of residual fuel oil during the week ended
Jan, 5, 1946; and had in storage at the end of that week 98,494,000
crude oil-production for the

-

unfinished gasoline; 10,530,000 barrels of kero¬

barrels of finished and

for

ers

about

of

$1,300,000,000 or there¬
91 -day Treasury bills

April

18, which

Calculated

Requirements

gcg;

December

Kansas

...

Total applied for, $2,005,255,000.

ables

Ended

Begin.

Jan. 5,

Dec. X

1946

lent

rate

388,000

388,000

1392,800

249,400

1205,950

800

Week

from

Ended

Ended

Previous

Jan. 5,
"1946

Jan.

389,350
242,300

361,200

750

1,000

1,950

+

—35,950

r

t750

——

:

■

North

Texas

West Texas

--——

U-g-gii.-g;;^!vv-yggj. .;-r<

East Central Texas-

t.Jif-b;

•

East Texas

Southwest Texas

'"?<■■■

3,150

150,450

143,150

+

23,600

471,700

+

(i

■

.:

Total

Louisiana

-

Forest

370,900

328,800
487,500

+14,250
+ 18,400

342,350

Living costs for the average
family of wage earners and lower-

552,60Q

salaried

1,999,300

+ 76,900

1,940,750

2,120,350

clerical

workers

in

the

United

+

500

•+

500

295,300

76,950

70,450

295,300

289,200

States increased

corresponding week in 1945.
Ore

loading^amounted to 9,133 cars, an increase of 1,418 cars
preceding week, but a decrease of 740 cars below the cor¬
responding week in 1945.
above the

the

0.4%

in

Coke

November,

the greatest monthly
rise since last June, the National
Industrial

Conference

ported

Jan.

Board

re¬

-

i

Arkansas

.

365,000

■406,000

78,000
48,000

77,311

76,550

!

—

-

Mississippi
Alabama

Illinois

'

—

Indiana

76,250

81,000

54,100

49,700

50

400

250

;;ioo

50

—

100

213,000

205,200

+

2~800

205,800

206,900

13,500

14,150

+

750

13,350

12,700

65,200

63,550

9,600

58,600

62,450

500

29,350

29,700

550

45,900

200

91,200

•

——

4-

650

g.y g'g-1':- *.

Florida

100

550

—

54,500

500

——_—

359,650

372,250

on

lOf

The Confer¬

Eastern—•

■

Ky.)

——

Kentucky

-

—-

Michigan——;.

V'voraing :■.'
Montana' -—,!
Colorado

■

29,000

30,050

47,000

45,250

92,000

91,650

22,000
20,000

—

———-

.

g
r

"

Mexico /

New

Total East

850,000

California -L—

19,500

y

800

20,100

30.050

9,600

23,000

450

98,000

3,701,350

+

67,450

846,750

+

6,750

3,661,550
842,550

104,000

102,000*

3,692,000

of/Calif.

;

$£24,000

98,300

49,250
•

95,000
20,450
9,200
103,200

living index
106.2 in

except the Eastern and Northwestern and all reported

compared with 1944.

1.3%

was

than in

November,

1944,

Week

An increase of 1,0% in food costs,

level

a

2.5%

cost

of

creased costs

living;.

following table is a summary of the freight carloadings for

separate railroads and systems for the week ended Dec. 29, 1945
and Jan. 5, 1946. "^During the first period only 28 roads showed in¬

Other in¬

creases

when

Total United States

tended Jan. 6,

1945.%

3,791,950

886,600

4,548,ICO

4,542,000

4-74,200

.

"REVENUE

RECEIVED FROM CONNECTIONS

AND

LOADED

FREIGHT

7:00 a.m., Jan. 2, 1946.

basic allowable as of Dec. 1 calculated on a 31-day basis and
exemptions for the entire month.
With the exception of
several fields which were exempted entirely and of certain
other fields for which
shutdowns were ordered for from 1 to 10 days, the entire state was ordered shut
down for 6 days, no definite dates during the month being specified; operators only
being required to shut down as best suits their operating schedules or labor needed
to operate leases, A total equivalent to 6 days shutdown time during the calendar
month.

the net

is

tThis

;

and

shutdowns

g

.•

;

'

§ Recommendation of Conservation Committee of California Oil Producers.

;

TO STILLS;

RUNS

CRUDE

AND UNFINISHED

/

'

1945 AND JAN. 5. 1946)

PRODUCTION

GASOLINE,"

OP

GASOLINE;

STOCKS

OF

FINISHED

&

-Bureau

of

'% Dally Crude Runs
Refin'g
to Stills
Capac.

Daily % OpAv.

Report'g

District—

99.5

Coast———
.

,754

erated

Produc'n

Inc. Nat.

Blended

95.3

1,800

end

JStocks

;

Gasoline

Stocks

& Dist.

Kero-

Fuel

313

Resid.

Fuel

10,680

6,896

Appalachian—
76.8

84

57.5

285

3,026

g District No. 2—L*

81.2

59

118.0

136

1,155

Cnd., 111., Ky.—L-—w
Okla., Kan., Mo

87.2

728

84.9

2,707

20,183

78.3

392

83.G

1,487

0,140

,64.8

District No. 1

—

—

544

231

143

179

1,712

5,174

2,680

567

1,996

1,063

47 ;

Central Vermont

.

Detroit,

Toledo &

Ironton

-

Detroit & Toledo Shore Line—2——

•yrg'

'

;

;

California

102

20

16

31

89

436

724

787

81.4

86.5

;

Total U.S.U of M.
basis

5,

Jan.

.

basis Dec. 29, 1945S.

B.

«f

M.

85.7

1946^

Total U. 8. B.ofM.

U.

'

1

4,651

86.0

15,448

571

7,625

14,488

♦98,494

22,887
•

.

10,530

35,199

-

42,371

>

85.7 4,729

87.5

14,546

95,205

10,201

36,651

42,447

14,552

187,005

.10,751

37,409

55,567

basis

6, 1945--—--

Jan.

.2,114

'

4,671

8,169,000 barrels of unfinished gasoline stocks,
tlncludes 13,402,000
unfinished gasoline stocks.
tStocks at refineries, at bulk terminals, iri
in pipe lines.
SNot including 2,201,000 barrels of kerosine, 5,293,000
gas
oil and distillate fuel oil and 8,867,000 barrels of residual fuel oil

921

840

3,694
5,516

5,163
7,093

89

187

132

160

16fr

1,128

1,729

1,302

2,316

g; 1,646

2,538
14,291

254

?80

285

g 2,399

9,322

9,492

11,480

12,712

2,436

3,016

3.020

6,502

7,371

112

144

165

1,898

2,408

1.354

1,214

1,574

1,345

1,098

5,414

8,012

3,045

6,624
2,742

1,946

2,004

6,008
4,402

3,935

355

4,925

5,110

15

1,808

1,854

37,172
8,309

1,500

1,359

1,794

1,245

261

272

249

2,347

7,497
2,336

7,298

s

960 '

10,532
V

1,996
4,077
1,650

1,602

2,044

3,792

4,149
1,740

4,300
1,918

179

31,352

35,273

38,775

35,910

42,278

37,895

7,777

12,539

15,782

8,493

"';g'

17

•

335

Pittsburgh & Lake Erie
__i—
Pere Marquette—
Pittsburgh & Shawmut—
Pittsburg, Shawmut & North
Pittsburgh & West Virginia-————;

5,683

6,101
:v 3,745

6,513

5,344

5,674

6,675

3,849

5,199

6,489

465

792

6

g

.•

3,546
652"

151
:

602

267

159

949

1,594 :

•"

>.

552

'

—
-

91

1,036
2,194
14,411

8,109
430

5,808

240

2,562
45,669

15

42.005

46,686

9,032

12,604

15,418

-

18

-

625

1,043

1,696

2,776

5,052

6,590

10,936
1,761

13,232

6,274

6,367

5,517

5,664

;

g

305

560

3,963

6,910
3,689

4,259

;

I

7,775

1

1,699

18

g i

676

595

838

180

231

251

283

231

168

2,180

745

689

835

1,701

2,641

280

4259

283

266

935

781

4,005

4,434

4,547

9,235

11,246

5,213

3,077

3,652

3,763

3,067

3,596

3,921

106,020

114,286

126,779

L58.687

187,210

126,560

310

272

•,...

5,014

V

6,328

-

746

997

9,698
3,073,

4,219

4,029

122,921

147,830

168,918

.

6

:

11,318
4,163

188,841

-•

Bessemer & Lake Erie

—

,

———.

Jersey——.

Cornwall—
Cumberland & Pennsylvania—
—
Ligonier Valley——————
Long Island——.
—

28,729

1,423

981

33,246
2,042

t

g> 301

1,104

1,128

♦376

17,343

23,035

35,834

1,028

1,205

1,258

14,487

16,231

555

42

4,795

288

367

541

40

52

311

214

121

172

976

v

1,119

v

'

365

110

227

221

13

4
29

20

72

132

4,120

3,987

1,152

"1,337

,

g-gMs;
..

47/
9

26

21

3,808

3,914

1,467

2,199

1,215

1,465

1,234
1,476

g 1,499

2,078

64,877

42,919

50,258

62,146

65,033

72,759

46,817

54,617

11,493

21,155

23,245

10,400

14,219

22,687

23,888

2,564

2,948

19,246

2,537

9,277

10,187

17,452
3,588

11,522
17,268
3,455

4,007

10,359

3,133
11,161

135,201

139,645

145,587/ 166,091

123,847

141,424

;

1,343

1,468
57,734
10,925
17,054

18,403

2,367

2,709

3,436

gig111,360

128.242

144,356

114,544

...

8

6,165

16,918

1,066

*

5,221

13,500

50,797
8,785
14,535

Penn-Reading Seashore Lines
Pennsylvania System

ggg t
4

5,358
•

J.338

t

1,676

1,110

141

23,734

1,092.'

1,373

4,818

968

•1,245

19,370

2,980

871

729

80

♦1,104

40,669

642

6

3,889

9

7^9

;;

1,661
/g tg

36,058
.

f

t

t

g gggiu;

1,416

ggg

——

613

585

376

26,348

Buffalo Creek & Gauley—
Cambria & Indiana—

Reading Co
Onion (Pittsburgh)
Vestern Maryland

gg/g.8V;

141
698

Allegheny District—

Central R. R. of New

7,552

152

"

5,275

•

7,523

101

2,1 IX

:

1,468
10,914

10,014

6,295

2,848

\

'■'■"g/39

45
1,950

102

13,251

Wheeling & Lake Erie

1,588

5,643

1,688

—

13,167
1,869

12,347

gg

158

1,689

Baltimore & Ohio——..————

1,399

812

5,973

10,547

———

32

3,787

384

Wabash—

—

1,723

5,670

—

2,326
6,127
1,082

."' 597

5,139

7,977

——.

"1,258

380

9,341

6,991

1945

1946

1,233

10,855

337

Akron, Canton & Youngstown

34

,

745

737

351

2,156
10,061

317

1,379

58.5

958

4,136

5,018

5,233

92.3

798

3,485

v ■

678

385

12

26

3,827

„

1,858

93

36

Chicago & St. Louis—
if. Y., Susquehanna &
Western-^-

York, Ontario & Western—::

Mew York,

5,889

17.1

41

8,224
1,126

228

72.1

31

6,399

1,105

-

35

6,686

1.815

3-

24

5,306

4,967

4

13

*,196

2,854

No.

1,090

1,410

17,022

No.

6,059

824

1,164
5,627

869

District

2,323

6,071

1,420

1,182

3,686

District

2,993

12,967

1,455

Lehigh & Hudson River.

''862

281

425

11,521

2,132

93.9

'

313

5,816
1,035

12,457

121.5

453

2,040

969

2,946
151

316

187

1,634

4,822

795

Connections

.

268

248

317

1,230

2,288
5,422

9,502

Maine Central

1944

1945

1,031

158

Louisiana Gulf Coast-

1,924

238

9,051

214

157

1943

237

2,781

1,162

-39.7

1944

307

97

96.8

50

1945

7,527

59.8

65:9,

Freight Loaded
1946
1945
1944

2,157

;

89.3

& Arkansas—

Connections

Grand Trunk Western—

Erie.--L-—

Texas Gulf Coast

Rocky Mountain—

Freight Loaded

3,225

Delaware, Lackawanna & WesternDetroit & Mackinac

Inland Texas-—

No. La.

Total Revenue

794

zlZ—2—

Delaware & Hudson

Rutland

Oil

Oil

sine

3,876

of

Gas Oil

of

,20,774

Boston &

Mew

tStks. of JStks.

Unfin.

atRef.

Bangor & Aroostook

Chicago, Indianapolis & Loujsyille.;—
Central Indiana'-L&—

M. Y., N. H. & Hartford

basis-

Mines

--,>>■

...,

Mew York Central Lines

Figures In this section include reported totals plus; an
estimate of unreported amounts and are therefore on a
§ Gasoline tFinish'd

Eastern District—
Ann Arbor

Montour-//—--——

AND RESIDUAL FUEL OIL, WEEK ENDED JAN, 5, 1946

Total Loads

Received from

Total Revenue

Received from

Rallroads

Vtonongahela—

KEROSINE, GAS OIL AND DISTILLATE FUEL

Week Ended Jan. 5-

29
Total Loads

Lehigh & New England
Lehigh Valley™—.

(Figures in thousands of barrels of 42 gallons each)

East

-Week Ended Dec.

Bureau

are

tOklahoraa, Kansas, Nebraska figures are for week ended
'

includes

%

4,678,550

4,504,100

pf Mines calculations of the requirements of domestic crude
oil (after deductions of condensate and natural gas derivatives) based upon certain
premises outlined in its detailed forecast for the month of December.
As requirements
may be supplied either from stocks or from new production, contemplated withdrawals
from crude oil inventories must be deducted from the Bureau's estimated requirements
to determine the amount of new crude to be produced.
In some areas the weekly
estimates do, however, include small hut indeterminate amounts of condensate, which
is mixed with crude oil in the field.
♦These

while

compared with the corresponding week in 1944,

(during the second period 56 roads reported gains over the-week

clothing and 0.1% in sundries.

(NUMBER OF CARS—WEEKS ENDED DEC. 29,
-

769,623

683,398

652,457

5.

the

0.1% in men's

were

January

The

higher than in

November, 1944, featured the rise
in the

of

1944

1945

1946

higher

cars

compared with the corresponding

decreases

index

of 70

decrease

a

All districtsTeported decreases

vember, compared with
The

cars,

decrease of 140 cars below the

week in 1945

October.

12,848
a

stood at 106.7 (1923=; 100) in No¬

to

Ind.,

(Not incl. 111.,

Board's cost of

ence

to

week, and

corresponding week in 1945.

.

373.050

amounted

loading

below the preceding

'

-

products

loading totaled 26,090 cars, an increase of 10,249
above the preceding Week, but a decrease of 5,055 cars below

cars

Cost of Living Rises in Nov.

135,150

v'g

'

in

of-$1,309,645,000.

318,100
474,100

77,750

7-'■

17

310,250

—

Louisiana

sim¬

a

Jan.

on

4,500

.

Coastal

maturity of

a

preceding week and an increase of 5,455 cars above
in 1945. In the Western Districts alone load¬
ing of livestock for the week of Jan. 5 totaled 15,335 cars, an increase
of 6,740 cars ^tfbve the preceding week, and an increase of 4,307 cars
above the corresponding week in 1945.

.

1,940,000 12 ,029,706

Louisiana

was

issue of bills

above the

cars

the corresponding week

+ 13,000

320,000

an increase of 673 cars above the
corresponding week in 1945.
Livestock;loading amounted to 20,804 cars, an increase of 9,272

and

478,600
144,050

—

Total Texas

North

+

>•"

Coastal Texas

/

152,800

.489,400
439,800

,

——

There

products loading totaled 43,912 cars, an increase

alone, grain and grain products loading for the Week of Jan. 5
totaled 28,994 cars, an increase of 5,776 cars above the preceding week

0.376%

88,700

81,000

81,000

Panhandle Texas—

Grainl-and grain

of 9,026 cafs above the preceding week and an increase of 4,349 cars
above the corresponding week in 1945.
In the Western Districts

99.95; equivalent rate of

the amount

increase
of 40,393

Coal loading amounted to 146,183 cars, an increase of 45,277 cars
the preceding week, but a decrease of 2,908 cars below the
corresponding week in 1945.
' ^
\
:

bids:

ilar

229,900

an

above

(61% of the amount bid for at
the low price was accepted.)

6,

1945

freight loading totaled 295,632 cars,

cars, an increase of 10,192 cars above the preceding week, and
increase of 8,491 cars above the corresponding week in 1945.

per annum.

4 Weeks

preceding week-which included

V

per annum.

approximately

the

of merchandise less than carload lot freight totaled

Loading
an

Range of accepted competitive

Low,

above

97,855

99.905,' -equiva¬
discount
approxi¬

of

y

•

-

of 60,942 cars above the preceding week, but a decrease
cars below the corresponding week in 1945.

price,

mately 0.375%

discount

Change

Week

Miscellaneous

accepted,
$1,312,132,000
(includes $61,205,000 entered on a
fixed price basis at 99.905 and
accepted in full).
Average

-

_

Loading of revenue freight for the week of Jan. 5, increased

^

146,306 cars, or 28.9%
Christmas holidays,

Total

Actual Production

268,000

—i-—

Nebraska

.

,

High, 99.907, equivalent rate of
approximately 0.368%

PRODUCTION (FIGURES IN BARRELS)
Week

holiday.)

on

11, were opened, at the Fed¬
eral Reserve Bank on Jan. 14.

per annum,

State

offered

were

Jan.

residual fuel oil.

Allow-

totaled

to be dated Jan. 17 and to mature

discount

*B. of M.

of revenue freight for the week ended Jan. 5, 1946
652,457 cars, a decrease below the corresponding week of 1945
of 30,941 cars,..or 4.5%, and a decrease below the same week in 1944
of 117,172 cars or 15.2%.
(Both 1946 and,1945 included New Year
Loading

nounced

sine; 35,199,000 barrels of distillate fuel, and 42,371,000 barrels of

DAILY AVERAGE CRUDE OIL

Freight Gar Loadings Bering Week
..Ended Jan. 5,1946 Increased 146,306 Gars

The Secretary of Treasury an¬
on Jan. 14 that the tend¬

Institute estimates that the daily aver¬

The American Petroleum
age gross

Revenue

Result of Treasury
Bill Offering

Dally Average Crude Oil Production for Week
Ended Jan, 5, 184S increased 74,2®^ Barrels

♦Includes
barrels

of

and

t-ansit
barrels

of

week ended Jan, 5, 1946, which compares with 2,121,000 barrels,
and 8,765,000 barrels, respectively, in the preceding week and
4,546,000 barrels and 9,399,000 barrels, respectively, in the week
6, 1945.
•
;
;
/; ggg
'

produced during the
5,055,000
1.388.000
ended

barrels
barrels,

Jan.

Total

V

Pocahontas District'-

Jhesapeake & Ohio
Morfolk & Western

15,184

18,193

9,886

12,832

1,904

7irginian

7,564
18,053 g ;'4,767

2,696 •g.

4,061 '">,985

>

7,010 g;
2,271

17,478
4,360

18,075

45,992

..

gij/glvg

26,135
19,424

21,972

>4,638

4,815

50,197

55,880

29,093

8,543
10,743
5,740 / V 7,636

1,006 ...2,089

.

into military and civilian grade discontinued, because of the
difficulty experienced by refiners in attempting to determine the ultimate

NOTE—Separation
inr.rea'-ing

24,154

8,794

24,341

>>:•

disposition of these

inventories, g"'-'O--.;gg




J

-

Total-

..

26,974

33,721

g 46,455

>

13,316

.

15,289

,

120,468
j

Volume 163

Number 4456

THE COMMERCIAL & FINANCIAL
-Week Ended Dec. 29-

-Week Ended Jan. 5-

Total Loads
;V7'i--

-v

1,1 ;7"

M

:V

I"V

CHRONICLfc

Total Loads :

Total Revenue

Received from

Total Revenue

Received from

Freight Loaded

Connections

Freight Loaded

Connections

""

'

Jan. 21.
in

is

303

The strike in Mexico

its

second

Railroads

@

1945

Souths Dlstrlct-VAlabaffia, Tennessee & Northern.**.—.

158

Ati&W. P.r-rW, R, R. Of Ala.,--

446

538

Atlanta, Birmingham & Coast-..—*.

356

551

? 577

273

276

583

1,364

2,798
1,213

*356

738

301

232

344

817

787

1,509

3,049

743

633

*738

8,159

9,716

6,849

12,905

12,322

8,349

2,183

2,799

2,778

9,490
3,841

12,746

1,790

3,362

3,398

3,589

3,607

4,185

285

913

1,355

305

370

321

1,286

1,582

1,498

@2,242

1,490

1,599

2,846

174

.

•

—.

—

—.

—

236 i

678

@1,020

2,683

1,340

154

164

243

185

182

327

280

221

215

3,088
258

71

79

92

480

456

67

117

89

251

644

2,298

2,692

3,021

3,012

24

...

914
313

385

2,901
1

519

i

■

89

89

I,419

882

'

170

1,467

1,188

40

20

,

459

:

-

.

*

2,078

.

*~—

448

:

,

"

,

.

.

2,962

1,227

1,443

46

45

36

91

112

788

1,184

1,038

1,386

2,813

312

407

385

580

585

2,935

3,807

3,114

'2,625

2,943

3,938

3,716

3,712

3,143

3,303

Illinois Central System..—

17,972

22,404

23,949

II,532

24,020

27,917

15,005

17,556

21,247

7,569

16,699
10,643

22,425

Louisville <fe Nashville

22,563

23,762

24,075

12,783
7,796

10,985

157

724

706

251

353

472

—

.

.

————-

Macon, Dublin & Savannah

.—

105

99

116

165

669

314

457

255

2,761
1,014

3,777

@ 2,541

2,090

821

1,268

1,082

634

.

179

'
.

Nashville, Chattanooga & St. L.
Norfolk Southern—
i Piedmont N or them———i——

481

"•.-475

)$!.'*

227

Southern System———————~
Tennessee Central-—.*—

567

•

333

2,827

2,960

3,201

'3,864

725

911

@1,040

1,944

386

1,212

1,142
9,990

207

224

7,007

8,598

257

';v- 452

6,453

6,058

6,881

9,577

9,493

15,995

6,639
18,012

17,000

20,720

288

402

493

733

598

77

79

93

549

1,004

74,442

85,757

.97,479

78,007

103,322

-

'

-

v

366

8,353

10,833

6,779

7,914

21,266

19,832

22,709

748

709

112

543
*130

638

887

113,277

117,790

89,019

108,725

20,996
•

■

21,673

501

390
127

'

;

.

108,134;

13,799

524

148

Winston-Salem Southbound——.—
Total.

■J-

297

246

%

6,475
14,482

:

Seaboard Air Line——-—@.*-.;

2,467

2,185

1,887

Richmond, Fred. & Potomac—-——1—

"

185

86
248

'

Mississippi Central——-———** •

i

288

7,718

Georgia
Georgia & Florida—
Gulf, Mobile & Ohio-

j

1945

.

Florida East Coast

*

!

1946

———J-——

iGainesville Midland—

j

662

1944

Atlantic Coast Line

Durham & Southern—

v

1945

Central of Georgia

Columbus & Greenville.-....*....-..-.

1

144

215
,

1946

1944

1,342
10,857

J

'■

1945

1943

126

Charleston & Western Carolina——
Cli'nchfield*—....—

.

1944

Sales

i

now

wee&.

■

of

lead
for
the
week
amounted to 6,385 tons.
Lead
imports of the United
States in October and
November,
in tons,
according to the Bureau
of the Census:
.

Oct.

Ores, etc. (lead content):
Canada

469

Newfoundland
Mexico

2

—

Chile
Peru

"26

13

—

Bolivia

580

1,249

__

I

—

1,025
76

—-—

Total

___;V

Africa

619

—-j—2,428bars:

Pigs

and

7,858

-

.3,077

■

Mexico

2,637

Australia

——

and

scrap

market

Though

the

York

Antimoyial lead, type metal"Lead

338

121

2,735

1,702

-

held

flask, it

experienced
a
quicksilver.

in

quotations v in
at

was

directions

that. prices

shaded

a

on

San

New

•

$108 to $110 per
intimated in some

might

be

firm bid.

Francisco,

under

date

Jan. 8, reports the market
Coast unchanged at $106

of
the

on

flask,

per

Spot. @
CPA

has

increased

first-quarter

of

use

quotas for
tin in the

production

16,061 18,158

—

dross

at

Quicksilver
again

quiet

-'m 5
4,329

17

.Total
Lead

tons

2,199
%

—

Peru

against 521,133

1

,

10,330 11,625

—

Argentina

tons,

Sellers

1,922

West

Canada

513,-

156

the end of September.

4,305

Australia

French

hands of producers and consumers
at the end of October totaled

content.

of collapsible tubes,
foil, equipment for prepar¬
ing food, tin pipe and sheet,
soldiers, tin plate, and chemicals.
In
collapsible tubes, manufac¬
tin

.

'

Chicago & North Western
Chicago Great Western——;——
Chicago, Milw., St. P. & Pac
Chicago, St. Paul, Minn. & Omaha-—Duluth, Missabe & Iron Range
—
Duluth, South Shore & Atlantic
—.
Elgin, Joilet & Eastern
———.
Ft. Dodge, Des Mtoines & South—«—

.

.

11,340
1,946
14,295

;

12,709

13,815

15,644

11,569

11,534

11,551

12,674

1,996

2,150
17,094

2,915

3,137

2,547

2,148

2,764

2,841

8,827

9,546

17,465

17,749

8,893

3,016
8,305

3,367

3,391

3,422

3,612

3,141

21,229
4,340

3,500

3,293

960

1,128

232

883

385

498

8,328

8,343

9,956

} 93

71

3,581

4,752

16,826

2,975
857

3.031

989

221

158

1,028

411
6,446
323

391

619

367

543

554

7,966

8,041

9,014

10,128

8,280

452
8,371

348

298

420

962

■
.

,

'

73 ;

,

140

287

346

92

8,015
Bay & Western————*-.
343
Lake Superior & Ishpemlng———.
187
Minneapolis & St. Louis—1,544
Minn., St. Paul & S. S. M.
—;**~
: 3.923
Northern Paeif
.———.
6,4-10
Spokane International———
48
Spokane, Portland & Seattle——
1.103

9,090

9,184

3,728

5,081

10,099

10,206

12,733

362

420

621

968

*343

423

550

*621

159

158

44

38

270

203

212

48

60

1,617

1,852

2,411

1,799

1,570

2,453

1,913

2,018

3,736

1,948
4,384

2,848

2,368

4,803

3,855

5,834

7,202

7,376:

3,514

5,152

8,195

8,428

10,119

175

72

369

520

94

184

105

227

420

1,506

1,567

1,686

3,204

1,498

1,786

2,223

1,881

3,041

60,166

66,857

70,479

50,354

59,089

74,750

72,483

88,964

50,710

55,406

16,299

17,820

17,548

7,731

11,891

20,901

21,379

7,843

11,084

*2,181

2,535

*2,660

3,318

*2,005

2,500

*2,715

2,930

184

340

2,611
511

21?154
2,944

Green

■

12,340

10,865

Great Northern————————

:

Total

turers

Cadmium

Northwestern District—

———

•

•.

755

2,996'

2,385

3,587

5,162

At the meeting of the
advisory
committee
held
in
Washington

Jan. 8, it was suggested that con¬
sumers be restrained from
buying
in

of 90% of what
they
1941, a year that was
tentatively set as the base, period*
Also, it was thought that require¬
excess

used

in

ments

could

be

taken

care

of

on

a

quarterly basis, to better control
distribution; Final action on the

proposal to regulate consumption
is expected shortly.

the

may

obtain

now

Atch., Top, & Santi Fe System—-——
Alton—.—..-.

'

duced.

Production of bronze and

othef,1 tin^bearing
alloys
used
extensively in the war period
has dropped sharply, making in¬
creased

quantities

available
The

for

———

—

Btngham & Garfield——
—•
Chicago, Burlington & Qulncy
;—Chicago & Illinois Midland-—
Chicago, Rock Island & PacificChicago & Eastern Illinois———.
Colorado & Southern..————
Denver & Rio Grande Western——.

i, Denver & Salt Lake—
Fort Worth & Denver

14,480

15,381

1,841.

2,374

North Western.Pacific—
Peoria ds Pekln Union—

2,892

11,166

i 12,353

9,974

2,510

2,659
1,565

2,259

2,521

.5,144

2,419

2,416

571

1,368

1,960

592

558

2,084

3,125

3,085

@3,674

5,829

2,684

3,131

717

42

524

473

598

1,046

1,551

2,224

1,748

1,260

742

867

1,373

1,441

.278

424

491

-10~,

'•

22,090

17,136

—-

2,597

11,332

8,951

12

Southern Pacific (Pacific)

861
12,889

.

466

.

Union Pacific System

729

1,947

681 •:

3,523

'759

11,342
4,906
1,927

3,460

5,489

market

situation

1,062

403

525

vember

99

104

the

358

693

368

474

725

814

1,710

106

115

1,315

1,445

1,657

560

356

793

424

553

696

-...0

0
12,306

i

1

~-2T

266

297

13,849

13,345

12,658

7,487

22,797

0

@

■

-34*.**

7,339

26,144

25,892

20,634

_

.

0

1,749

0

330

439

0

1,537

9,714

13,707

15,234

16,478

16,395

10,559

13,374

"

V

5

553

390

548

4

0

758

536

663

1.102

1,624

1,688

2,273

3,434

1,173

1,900

1,939

2,205

3,705

84,372

97,979

99,503

59,948

89,836

103,581

112,632

120,616

61,813

83,997

,

@ WesternPaciflo-—

which

Institute,

are summarized

'

Stock

at

Dec-

beginning

Production

Production, daily rate-

.ftoathwestern District—
Burlington-Rock Island————.
>

,

Gulf Coast

245,665

61,482

51,326

842

3,123

International-GxeatNorthern
Kansas, Oklahoma & Gulf—:—
City Southern

300

264

261

707

606

3,676

4,631

5,227
1.347

2,007

2,141

1,326

—

4
1,957.

Kansas

Louisiana & Arkansas——

>

,

»

.

Missouri

Valley

2,332

247

234

& Arkansas———

Missouri Pacific.—

v
.

Texas & New Orleans—

.^v@Texas & Pacific-i.———-w-i.-——-*-4., Wichita Falls & Southern
Weatherford M. W. <te N. W.—

—

Total

•

•

i
2,129
1,877
892

231

791
121

69

1,302
k

figure.

3,296

t

252

2,320

4,312

5,057

2,256

2,438.

2,268

*1,802

2,763

3,282

*1,877

2,172

274

249

292

921

1,058

1,340

1,057

•

■

t

1,107

1,490

282

784

1,535

107

149

279

5,753

5,763

2,990

4,737

15,398

17,905

12,130

16,516

117.

469

4,501 ^

.

1,457
422

.'

2,853

4,783

12,289

13,369

11,118

15,864

55

48

182

344

93

52

60

148

330

7,403

6.348

5,354

7,534

8,205

8,024

8,617

6,000

6,218

2,749

2,656

3,937

6,489

2,336

3,174

2,673

4,342

6,624

8,260

13,746

11,080

12,517

4,472

4,900

3,845

4,695

5,145

5,304

6,951

52

47

65

78

78

60

16

14

41

76

27

14

9

23

58,399

44,467

60,761

53,795

66,301

72,458

.48,015

59,534

6,412

9,448

11,055

3,309
93
27

5,967

4,885

30

42,817

58,034

tNot reporting.

2,377

t

2,311

t
'

4,059

93

88

4.178

4,681

tlncluded in Mid.and Ry.
City—Ada-Atoka Ry.'on Jan. 5, 1946 and on Jan. 6, 1945
*Prevlou3 week's

1,722

373

,•

5,518

Quanah Acme & Pacific—*————52
St. Louis-San Francisco
.
6,074
fit. Louis-Southwestern—
—1,852

,

369
2,027

'

292

4,725
2,882

871

@ 90
3,873
10,867

.

241
7,791
1,838

2,422
2,873

3,268

2,902

278

6,877

■,

1

860

——-

ik Missouri-Kansas-Texas Lines———
•

1,881
'•
t.

1,802

|?u Litchfield fe Madison—
/ $ Midland

•

4.200

333
4,760

%

.

4.920

.

7,079

•

20

§ Includes Kansas, Oklahoma & Gulf Ry. and Oklahoma

Domestic

NOTE—Previous year's figures revised.

at

Unfilled

Jon-Ferrous letals — Rhodesian and Canadian
Copper Sold to Britain —- Dec. Zinc Stocks Up
M. J. Metal and Mineral

Markets," in its issue of Jan.

"Aside from the gloom created by the labor difficulties that now threaten to curtail production of both copper and
lead the non-ferrous metal trade was interested in developments
dutside of this country that tend to remove uncertainty over Great
Britain's position as a buyer of metals.
The British Ministry of
Supply has entered into an agree- *
'
ment to
purchase African and sale in the first half of 1946. The
1 Canadian copper, with the result price is roughly the same as that
vl that competition in marketing sur- which has prevailed in the world
market for ; some time past, or
@
plus foreign production will be
reduced appreciably. Also, it be- close to 11.75c, f.a.s., United States
•

'

came

known that the British now

funds.

recognize that the world price of

these

the matter of
adjusting home prices is being
studied.
Quicksilver was unsettied last week and nearby metal

taken

;lead

;

has risen and,

concessions." The publica¬
further went on to say in

sold at
tion

part as follows:
Copper
.

54,033 tons, making
the total for the Jan.-Nov. period
775,617 tons, the Bureau of the
Census reports. Imports in Octo¬
ber and November, in tons * were
as

follows:

1946, stated:

10

agreed

which the

important producing

areas

of, only the renewal

the South American

contracts

stands in the way of establishing
a firm market for foreign copper.
The

mine,

mill

and

smelters

workers' union in Utah has voted




copper

matte,

etc.

3,203

2,353

14,245

24,978

36,585

48,676

54,033

76,007

Totals

@-«.

—

54,449

259,333

255,553

27,092

19,005

Lead

■

Shipments in 1945 totaled 777,649
tons, which compares with 837,322

tons in 1944 and
887,638 tons

in 1943.
The base price of Tri-State zinc
concentrate was lowered $5:28
per
ton last week,

establishing

the

quotation at $50. This action re¬
sulted from the discontinuance of
the $5 smelter subsidy on
Dec. 31.
Operators believe that premium

will

on

all quotas excepting tne

"C" quotas.

Output of ferromanganese
clined sharply in

ing in

a

de¬

October, result¬

reduction in consumption

of manganese ore in that month
of 17%, the Bureau of Mines re¬

ports.

Consumption during Octo¬
ber
amounted
to
101,408 tons,
against 121,898 tons in September.
ganese

production

ore

of

containing

man¬

35 %

or

London

tons in

September.

price of lead in Great Britain has

end

October amounted to 300

been raised

tons.

effect

that

the

£ 7 10s. per long ton,
which would bring the quotation

nearer
new

to

the

world

price. The
ceiling would fix the London

market for soft foreign at £ 37 10s
per

ton.

the

British

It

was

known

authorities

here that

have

ex¬

at

£35 per

ton failed to interest sellers.

The

the

United

mains

tight.

States

Mine

markets

and

re¬

smelter

totaled

manganese
in
October,

tons

of

16,200
16,100

against
Stocks at the

5

52.000

52.000

52.000

Jan.

7

52.000

52.000

52.000

Jan.

8

52.000

52.000

52.000

Jan.

9

52.000

52.000

52.000

—

—

—————

Chinese,

99% tin, continued
pound.

or

51.125c.

at

per

Silver

With
down

ports

Bureau of the Census
that
general
imports

manganese
amounted

ore

to

re¬

of
October

in

126,810

tons

(con¬
taining 61,021 tons of manganese),
against 150,197 tops in September;
The

Union

of

South

Africa

sup¬

plied 31%; Russia 24%; Chile and
the

Gold

Coast

production
because

mine

and

of

in

the

smelter

Mexico
strike

workers:

of

the

supply- situation in silver- LLjexpected to become tighter unless
the bill extending the Green Act
is passed by Congress before the
end

of

the

month.

The

New

Official

was
unchanged at
with London at 44d.

70%c.,

'■

-"i

V-.

'"W——■11

i@i

Ve".

1

"71.

.

;

Lumber Movement—Week
Ended January 5, 1946
According to the National Lum¬
ber

Manufacturers

Association,
shipments of 411 mills re¬
porting to the National Lumber
lumber

Trade Barometer

were

8.3% above

production for the week ending
5, 1946.
In the same week

Jan.

new

of

orders

28.2%

these

mills

were

above production. Unfilled

order files of the reporting mills
amounted to 82% of stocks.
For

reporting softwood mills, unfilled
orders

are equivalent to 33 days'
production at the current rate, and
gross stocks are equivalent to 38
days' production.

each

17%;

by 28.2%.

Compared to the average cor¬
responding week of 1935-1939,
production of reporting mills was
20.6 % less; shipments were 24.9 %
less; orders were 21.3% less.

Subscriptions for
World Bank Fond
WA SHIN G TON—(A.P.)—
Thirty-five charter member gov¬
ernments

.

The

other countries

demand-supply situation in

52.000

Jan.

For the year-to-date, shipments
reporting identical mills ex¬
ceeded production by 8.3% ; orders

more

the

52.000

52.000

of

Manganese

The industry was interested in
an
unconfirmed
report
f rom
to

52.000

52.000

.

Slab
zinc
production
in
the
United States in 1945 totaled
799,462 tons, against
901,332 tons in
1944 and 971.873 tons in
1943.

Domestic
■

lead, and recent bids

Imports of copper in November

dian producers

purchase

ore,

Blister

Refined

perienced difficulty in obtaining

have available for

to

In

to strike Jan. 21. Unless the strike

Rhodesian and Cana¬

Ministry of Supply

Oct.

Nov.

is called off before that date, pro¬
duction of copper in this country

drop sharply.
The Bayway
plant of the Phelps Dodge Copper
Products Corporation is closed be¬
cause of a strike.

The British

Has

of

With surplus production of
care

end

62,324
orders -i

March

-----52.000

4

York

price
amounted to

&

2,145

payments will be revised to ab¬
sorb the reduction in
the base

'

"E

64,337

Shipments:

Stock

Llnes^--—---^—-——.

Nov.

255,553
66,104
2,132

Export and drawback
•Total

in
follows;

as

'■

Feb.

3

Jan.

com¬

and December figures of
American Zinc

Jons,

tin

Jan.

ber amounted to
259,333 tons, an
increase of 3,780 tons.
The No¬

1,728

921

December,

with 54,449 tons in Novem¬
Stocks at the end of Decem¬

ber.

in

unchanged last week. Straits
quality tin for shipment, in cents
per pound, was as follows:

was

pares

38

1,998
■

in

1,263
*1,260

697

*1,551

a

tons

992

714

1,939

,

against 64,337 tons in November.
Total shipments came to
62,324

@582
•1,980

700

760

20
:■

769

1,117

12,255

Toledo, Peoria & Western—
:

2,733

9,967

688.
•

17,137

17,442
2,665

11,887

9,220

16,338

479
652

,

75

10,579

1,834

.

Nevada Northertti.———i--—.
•a

54

9,247

8,866

Missouri-Illinois——-———i—i-

;;

465

21,511

9,345

City

I Illinois Terminal--!———-

404

245

51

44

of the metal
applications.

other

Jan.

Production of slab zinc in De¬
cember amounted to
66,104 tons,

of

corre¬

sponding
quarter
of
1944,
as
against 100 % previously. Use. of.
tin in cast alloys has been re¬

Zinc
Central Western District—

»

125%

.quantity used in the

and

11%.

Stocks of manganese ore in the
hands of the Office of Metals Re¬
serve on Oct. 31 amounted to l *

175,209 tons, against 1,123,423 tons
workers in Utah voted to strike a
month previous. " Stocks in the

nearly
than

have

made

$15,000,000,000,

83%

of

the

available
or

total

more

subscrip¬

tions for the World Bank and Internatinonal
Associated

Stabilization
Press

Washington,

Jan.

Fund.

advices

2,

from

indicating

this, added:
The State Department said that

83.23%,

or

$7,324,240,000, had

made available for the

been

$8,800,000,-

000 stabilization fund and
83.52%?
or

$7,600,320,000, for the $9,100.-

000,000 bank

THE; COMMERCIAIL&: FINANCIAL CHEQNICEE

304

Heuslon Elected Chairman of Board and
Assumes Presidency

Jaeksoi |SS5°S°gM.*5S SSIS1!!
Banking

of ChemicalBank & Tr. Go.

Succeeds to Post Vacated by
Percy H. Johnston. Other Changes Include Appointment of^
Harold H. Helm as First Vice-President and Joseh A. Bower as y,£
Vice-Chairman of. Executive Committee. Retiring Chairman Reports
on Earnings of the Bank in 1945.
*
At the annual organization meeting of the Board of Directors
New Head of New York Institution

*

Co., New York, on

.

,

,

of the Chemical Bank & Trust

Jan. 10, Frank K.

field

by

long

making

and, if generally fol¬
lowed, will bring; about a nonliquid and frozen position of such

It

to be maintained with the Federal

Reserve Bank and the vast hold¬

not that he is concerned about the

what these

ings of Government Obligations
by the banks, only a small amount

loan!

talking about

institutions.

Bank

.

liabilities

are

quick, and therefore assets should
be of short maturity and readily
liquable.". Mr. Johnston went on
;to

-say:/;/<■;::'J-: //; rv/
/ ■:
existing situation discloses
••

the i excess

large, banks.

of

■

minimum.

a

reserves

funds

excess

at

the

of

reserves

are

required

remains for em¬

ployment. Therefore, we cannot
help but view .'with alarm the
tendency to put funds in
time

committments."

and

loans

The / report
Johnston

presented
for the year

was

by Mr.
ending

Dec. 31, 1943, and was the 122nd
of the bank's existence. 1 In re¬

viewing

the

bank
Mr. Johnston said: •

Bank had another

"The
lent

Chairman of the

elected

Board

Chairmanship" ?: of

bank, but
the
the

Vice-President.
man

Executive

retirement

was

Witt-

was

Street Office, where he was for¬
merly Assistant Secretary. George
I. King, Jr. was appointed an As¬

Executive

the

William J.

as

appointed
Assistant
Vice-President at the 11 West 51st

Committee. Announcement of Mr.

Johnston's

Chief

Percy H. Johnston, who retired
26«»——•—

than

at the request of
of Directors, to take

agreed,

Board and

succeeded

more

of the

head

as

years

after

pre¬

sistant

viously referred to in the "Chron¬
icle" of Jan. 10, on page 169. /

Vice-President

at

the

320

Broadway Office, Where he was
Manager,
Roger
S,
;;
In becoming the new Chairman formerly
Assistant Trust
of the institution, Mr. Houston has Ames, formerly
been succeeded in
his previous Officer, was appointed Trust Of¬
Malcolm
H.
Foulk, for¬
post of President by N. Baxter ficer.
Jackson, who was formerly First merly Assistant Manager of the
Foreign
Vice-President.
The latter posi¬
Department,
was
ap¬
tion is now held by Harold H. pointed Manager of the Foreigh
Department.
Helm,
and Joseph
A.
Bower,
.

Chairman

-

of

the

Vice-President

been

has

Trust

retired

who

tee,

large
$3,825,000.00 were
earned and declared payable to
the
shareholders and provision
made for all expenses and losses.
The amount of $4,605,110.60 was
provided for Income; Franchise
and other taxes including taxes
on
the
sale
of
securities, and
$799,915.36 was paid for Federal
Deposit Insurance. There was also
charged against current income
$3,979,028.85 for amortization of
bond premiums and $60,000.00 for
reduction of the banking house
on
West 51st Street
(adjoining
Rockefeller
Plaza).
$519,621.34
which
includes
$250,000.00
re¬

on

Other

:

At

the

Secretary, Alfred E. Tree, Assis¬
tant Manager of the Foreign De¬
partment, Joseph Mazzola
and
Raymond J. Fernandes, Assistant
Managers of the Customers' Se¬
curities Department, and Christo¬
pher J. D. Dodge, Assistant Man¬

Vice-Chairman

Appointments

meeting, Gilbert
Yates,; who has jbeen Treasurer of
the Chemical Bank since 1931,
was a p p o.i n ted Vice-President.
George Lysle and William S. Renchard, formerly Assistant VicePresidents, also were appointed
Vice-Presidents^ George A. Peer,
formerly Assistant. Treasurer, was
appointed Treasurer, Joseph A.
McFadden,
Jr.
and
James
B.
Richardson,
formerly ; Assistant
Secretaries, were appointed As¬
sistant Vice-rPresidents.
G. Ray¬
mond Christensen, formerly Man¬
ager of the Government Bond De¬
same

partment,^:Was appointed Assistant

Im

submitting his annual report

to shareholders on Jan.

Chairman

Percy
"many
inaugu¬
that

stated
we

rated

ago

we

i members

of

and

d

n

a

s

asked

I

t

a

k

a

t h e

in

United

Press

advices
from
Jan. 5 appearing in
the New. York "Journal Ameri¬

Washington
can"

which

//. Rep.

•

.

■

further

reported:

Landis

did not say; who
conducted the poll nor how many
members expressed their views.
Other

members

said

they had
no
knowledge of a formal poll,
but some of them expressed the
belief that
mas or

a

vote

before Christ¬

at this time would defeat

the loan.

Landis said "it is reported

Mr.
that if

we

Britain,
upon

make the loan to Great

America will

to make loans

total $26,000,000,000.

be

called

which

will

Forty-seven

nations will seek loans from the
United States":

';

'




transferred

i

undivided

from

the

close

of

business

No¬

$102,100,627.84.

for

to

after which $10,000,000.00

050,012.89 or total capital funds of

to

in

loan

indicated

undivided profits ac-..

surplus of $65,000,000.00, un¬
profits of $10,050,614.95
unallocated reserves of $2,-

tive

was

to

divided

proposed

This

transferred from unallocated

and

Chairmanship

$4,400,000,000

in

each

for

the: capital account. The Bank
now has a capital of $25,000,000.00,

have

e

share

one

to

not

me

distributed

be

to

of

vember 10, 1945, $5,000,000.00 was
transferred from surplus account

Chairman.

They

stock

ratio

of

As

of the Execu¬

Great Britain.

brilliant

some

correspondent

ington

about' it...

;

.

1

,

.

Wash¬

asked

.,,

.

which statesmen tell their
of

their

decisions.

munique,

Truman and Mr.,
announced an agreement

Attlee
the

on

people ;
comJ

this

In

Mr.

atomic

that

^

what-.,

and

bomb

,

* we
But it

means,

anyone to say.
as

*

was

tremendous

a

After

/
:

•

had really been /

men

the

'

»

will defy
hailed
accomplishment
by the American free press, when

ever

finances.

was

/;

parade of Britishers,

^

after Morrison, we asked a Brit¬
ish journalist, if he really thought
Britain cOuld survive without, the

,

I

; /

loan^lV-^w
"Hell no," he said.
In this event we
be able to force it

hope

we

them.,

upon

him
'

in the

Later

:

came for ;1
communique by v,

a

day, Mr. Morrison
met a smaller group • of news¬
papermen
at
a
cocktail party
given by the Overseas Writers.
Once again he didn't seek to im¬

Private Residential
Rises

,

propaganda upon the
But they insisted upon it.
us more frankly, they beseeched,
than
you
did to the
larger group this noon at the Na¬
any

pose

group.;

Talk to

.

.

tional Press Club.

As

a

matter of

fact you can

talk to us just as if
talking to your wife.
Whereupon, this British states¬
you

were

took

man

his

hair-

down.

He

thought perhaps, just confiden¬
tially among ourselves, that if we
worked, it right, we would be able
to put the loan over on the Brit^
ish people. They don't like it. It
has required a tremendous par¬
liamentary skill on the part of
men
like Morrison, and a good
joke it is on us too because we
think

didn't

a

could

ment

Socialist

handle

govern¬

these

things,
but nevertheless if /we^/act just
right, the British are liable to
take this loan in good grace.

The continued gains in private
residential
building during the
<

past few months caused the vol¬
ume of new family dwelling units
started in the third quarter

of this :
to exceed that of the corresponding period of 1944 by 69%.
This was in spite of the virtual
termination of the public warhousing program on V-J Day, the
year

Bureau of Labor Statistics of the«
U.

S.

.

Department of Labor an¬

nounced

Dec. 6.

on

Private build¬

put 61,500 homes under constiuction during the third quarter
ers

•

of

-

1945, 22% more than in the
preceding 3 months and more than
in any quarter since July-Septem¬
ber 1942. Federal construction, on
th e other
hand, dropped - front
5,700 family dwelling units in the

1

/

third quarter of 1944 to 3,-300 in
the same months of 1945.
The Labor

Department's report

continued:

*

.

,

a

four shares outstanding. On No¬
vember 1, 1945 the Superinten¬

dis¬

Christmas

at

profits account to surplus account.

the

Directors

the

was

I

age

ask

value

closed enough votes to defeat the

before

/:

until

loan

the issuance of

-

count,

the

month,

shall

House

undivided

to

shareholders

reserves

to re-elect me

poll"

added

was

"The

was

pioyees,

em

as

"confidential

268.58

profits account.

dent of Banks signed the author¬
ization. On that day $5,000,000.00

the

officers

this

a

H.

years

Sys¬

for

tem

8, retiring
Johnston

Re¬

a

tirement

prescribed

According
to
Representative
Landis,' (Republican) "of Indiana

in reduction of the book value of

the office building at 270 Broad¬

,

if they ever men-

,

.

reached

U. S,

utilized

himself,
and Britain,, of
course,, could get along without it
antd :was making a tremendous
sacrifice: to accept it, but it would
just upset world affairs complete¬
ly. 5 In fairness to Mr. Morrison
apd a commentary on us, is the
fact that he did not bring up the

is doubtful

tioned it until the time

Mr. Morrison didn't want, ap¬
Although the recent increases :
special
/
meeting held October 31, 1945 parently, to say these things. We in the volume of private housing
voted favorably upon the proposal Washington correspondents, being have
been
considerable,
resi¬
dential
construction
as
a
whole
is
to increase the capital stocK ox ever
on
our
toes, and always
ager at Eighth
Avenue at 57th the Bank from $20,000,000.00 to wanting to meet big men, forced far below prewar levels, and only
him
into
Street Office.
$25,000,000.00 and authorized the
saying them. We really a start has been made toward re¬
declaration of a stock dividend drew him out.
lieving the pent-up demand for
/
Johnston Reports on 1945
The total of 154,900 new
We recall that upon the occa¬ homes.
equivalent to $5,000,000.00 consist¬
Operations
ing of 500,000 shares of $10 par sion of Prime Minister Attlee's nonfarm dwelling units put under ' / ;/

a

House Votes to Defeat

leased from reserves, was

ville

of the Executive Committee.

*

of

Other appointments were: Mel¬ way (erected on the site of our
former banking home); $436,018.31
P.
Chamberlain, Assistant
for employee welfareand $4,452;-

Commit¬

Executive
Sept. 30 last,
as

named

excel¬
earnings;

with

year

dividends

was

of the

record

for the year

Officer. Mr. Houston

States

certainly had to stick to-;
gether
and
there
was
really
nothing for us to worry about on
account of Britain having gone
Socialist. ,In what is known as
the frank give and take question
and answer period that followed,
Mr. Morrison, and we aren't vio¬
lating any confidences, let it be
known that it would really be
disastrous if our Congress, should
turn down the British loan; oh,

Because of the

Houston

(Continued from first page)

unsound

"The

Frank K; Houston

Ahead of the Views

time loans and commitments,
It
is our belief ; that such policies are

that

Chairman

Thursday, January 17/1946

"We have taken a leading part

Commit¬

financing of the war. and

the

several

our

years

principal

tee,

which I percy H. Johnston
efforts have been directed to that
have agreed
::<;,
end. War industry loans and com¬
to do.

I shall remain

tor hf

the

Bank

(in

as

a

Direc¬

which

my

family and I have substantial in¬
terests) and have my office in the
Bank building." At the same time
Mr, Johnston said;
"I shall be succeeded

as

man

by Frank K. Houston

will

be

succeeded

in

the

Chair¬
a

ad he

Presi¬

dency by N. Baxter Jackson. Both
gentlemen have had twenty-five
years service with the Bank. They
are

time-tried and tested

sound

judgment,

and

men

will

of

con¬

duct the Bank along its usual con¬

servative

channels

and

maintain

mitments

made

$152,295,400.00

amounted

and

in

the

to

eight

Government Bond Campaigns, our

Team, No. 7, procured subscriptins
amounting
to
$2,792,293,075.00.
Bank

On

its

own

account

this

has

purchased $650,470,000.00 in War and Victory Bonds.
Our holdings of
United States
Government
obligations at the
end of 1945 amounted to $790,555,*
298.00."

V

/.>/-

The

report reveals net operat¬
ing earnings of the bank for the
year ending Dec. 31* 1945, after

providing for: operating expenses
its high ideals of business integ¬ and taxes, of $7,693,114. compared
with $7,639,244 the previous year.
rity."
The statement was made by Mr.; The operating income is reported
Johnston in his report that "we as $18,806,691 in 1945 as compared
view
with - grave apprehension - with $17,113,594 in 1944/ -v ^ ;

visit,
seas

members Of the Over¬

we

9

than the 135,800 units begun dur¬
ing the corresponding period of

a

magnanimously invited other
newspapermen.
Some wag un¬
favorable to the prime minister,
probably a Morrison man, had
passed out the word that he was
a
"sheep in sheep's clothing.'*
He

must

have

wondered

just

the

who

correspondents
were.
Having been told by his advisers
that this was really a hard-boiled
group
of
newspapermen
who
would really get at his thinking,

obviously amazed as well
relieved when the questions

was

as

first

the

luncheon at which

selves with

he

during

months of 1945, while 14% greater

we

"

construction

Writers really excelled our¬

1944, was only about one-fifth of
the 1925 peak and less than three-

vately

of

cost

reflecting the re¬
ceilings on prihomes

financed

consequent
houses:

tendency
the

in

and

price :

brackets. During the third quarter
of this year,

valuations reported

ceding quarter and 31%

expert/Sir

Maynard Keynes,
sitting right
next to him, and all of the men in
his
entourage
being
financial
men,

it

was

apparent

that, his

was
money, not / bombs.
inquisitors insisted upon
asking him questions about the
bomb.
At. first he was amazed*
then it occurred to him that a
concern

his

Yet

mysterious

attitude

about

the

multitude of
to note
change of expression on his
face, He had thought he was go¬
ing to be asked some pointed
questions arid then to have the
interrogation turn around this
thing, constituted a vast relief.
He became
quite coy and in¬
ferred, inasmuch as the corre¬
spondents were insisting it was
that way, that yes, he and Mr.
Truman were really groping with
bomb would cover a
sins.

It

was

interesting

the

'the

problem of the atomic/bomb;

::

build

to

higher

Atomic Bomb was the least of his
worries. The financial

'

■

the

cations for permits to build aver*

to

,

Average permit valuations eon*
tinue to mount,
laxation

center around:/ "What
arc you and Mr. Truman going to
do about the atomic bomb?"
It was quite apparent that the
began

,

tenths of the post-depression peak
in 1941.,

by private builders on their appli*

aged 8%

more

,

'

than in the premore

,

,

.

J

than

in the first 3 months of the year,

-

The average valuation of private ;//

dwelling
areas

units

started

in

urban

tember 1945

pne-fifth higher

was

than in the corresponding months
of 1944.

exceeded the 1944 figure by 34%

compared witli.

as

$381 million.
These estimates, based on build¬

permits

construction
were

Labor

issued

Federal

and

contracts

awarded,

prepared b,y the Bureau of
Statistics

..

of

tjie

United

States Department of Labor.
nonfarm

area

is defined

as

The

of the United States

including all incor*

porated places and all unincorpo*
rated

.

-

;

Total valuations for 1945

—$510 million

ing

.

from January through Sep*

places except farms.

'

*