Full text of Commercial and Financial Chronicle : January 2, 1947, Vol. 165, No. 4556, Section 1

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WDM.

j*r

Final

Edition

ESTABLISHED 1839

in 2 Sections

Section I

Reg. TT. S. Pat. Office

Volume 165

Number 4556

New York, N. Y.,

The Financial Ontlook
:

'..JProfessor
Dr.

the

interest rates prevents drastic
deflation that occurred after World War
I.
Contends inventories
not

high employment and

despite gradual elimination

shortages.

In the progress of
reconversion from a wartime to
iconomy, we have used up an amount of time which
duration <$>
the
first

An eminent American anthropologist in the cultural
field—Professor A, G. Keller—has
telling almost countless generations of Yale seniors
during the past forty or fifty
years that if human
history is a tangled drama, its plot, at least, is
simple: "Man Faces the'
Awkward Situation."
For
instance, "the cave-dweller rounds a corner and runs into a
•r:

\
r

saber-toothed tiger; the modern nation
encounters the
liquor issue
And the first line of man's
speaking part has always been:

peacetime
;

boom, the in¬
ventory boom,
f o 1 lowing

>f If the
J*

many respects

the conditions
of the last 18

bled

resem¬

those

price

the
move¬

the

ments,

tions, the im*\ V'
►erative foreign demand both for
he

necessities

life

and

for

apital goods, the persistant short-

oods

types

many

and

urables,

some

with

types

durable

non-

nevertheless

pward trend in inventories

(Continued

on page

29)

question

"Agemeen Handelsblad,"
Amsterdam

'";i

eliciting wide interest—whose provisions he
specifies.
The preseni 6dhdiiIoif %f
industry, 19 months

capitulation, Is

lion in its path.

y-'-,

manner

be¬

"more

heat

dealing with it with
light" than

longed to the

and less
the problem demands.

area

the
•

world

where

"pidgin

English"
used,

named, having tried so recently to
put themselves above, government,

his

above

the

q u e s t i o n

courts,"

might
well
have been:,;
"Man
(anxious 1 y )>

ease

Dr. Frederic E.
:

now

With John

Lewis, Philip■.« Murray, Walter
Reuther, and others who might be

What

■

objective manner, for in
writing
or
speaking upon this whole sub¬
ject, it is so easy to fall into the

vast

;

now

labor condi¬

Charles O. Hardy

v";

man

nation

GALEN."

Ruhr may become

have

1919-20:

Financial Editor,

van

Dutch publicist asserts
collapse threatens German industry, and
"economic slum."
}■ Declares aid must come
immediately, in form of: (1) adequate food
supply for industrial
areas of Western
Germany; and (2) credits for raw materials.
Suggests that United States, either
through the Treasury or private
banks, should establish raw material and
processing credit arrange¬
ment along lines of
Dutch-German Tredifina Agreement of 1920—

•

closely

(an-

what to do?' "

World War I;

months

"Man

xiously) 'Now

that is, a year
and a half. In

been

roughly equals

the
of

of Economics, University of Illinois

outlawing of closed shops, "check offs," member
maintenance, and other obnoxious restrictions

labor contracts.

boom

sellers' markets

Lee, in commenting

mistakes.

widespread tailspin, and that low

yet excessive, and "we don't have to have
shortages to have
or a
price inflation." Foresees a boom in durable
goods,'
and concludes immediate outlook
is for

Copy

present labor turmoil expresses doubt whether labor will
correct any of its
Calls attention to inter-union
exploitation and wild-cat strikes and cites instances of ruth¬
less union labor action in
housing construction.
Advocates enactment of a revised Case
Bill, and

than staving off a
collapse, Dr. Hardy stresses pent-up demand
for both consumer and
producer goods as portending continuation
of prosperity.
Says a decline in agricultural prices will not cause

By FREDERIC EDWARD LEE

Economist, The Chicago Association of Commerce
'
Formerly, Vice-President, Federal Reserve Bank, Kansas
City
Holding present problem is still one of preventing inflation rather

are

Price 60 Cents

Labor Turmoil Ahead: "Now What to Do?"

By CHARLES O. HARDY*

Thursday, January ?, 1947

President,
that

one

and

might

the

with

and

impunity belittle j the
President, and another of the trio
might deride the courts and their
Lee

judges

until

and

his; union

were

properly fined for their
contempt, it is hard for a ^redblooded American and an' Ortho¬

'after the

b'long plopper (proper) ?"
such that collapse
threatens.
j
^
; A journey
Certainly at the present time
through the Ruhr,<*>—
a
L±
which I undertook in
this nation "Faces; the Awkward dox economist- to
November to cars are
view the situa¬
obsolete and are
breaking Situation," with the lion in the tion coollyvandwithout
study the industrial situation, has
down with ever
passion,
greater frequency
convinced me that
path now confronting our eco¬
transport and and it is
Vet the approach to this problem
impossible to repair seri- nomic and
the
political order, that of
electricity supply is such that ous
should be an objective one if cor¬
damage.
3'- : \■ /.v•:
a further
decline in economic ac¬
trying to find some solution, both
In August, 15,000
freight cars— reasonable and
tivity can be expected.
'•; V.
fair,> to the mud¬ rective rather than punitive meas¬
i.e., 2V2% of the prewar rolling dled
It is always
problem of industrial unrest ures
dangerous to proph¬ stock of the
arey to
be proposed
and
Reichsbahn
were
and conflict.
esy, but a few figures
With labor having
supplied taken to the repair
adopted. "Hence, with as great
shops in excess been pampered and coddled for
from official British
sources will
of the number of
objectivity; as is possible, this
repaired trucks the past 14
demonstrate that the
years, it has gained a
prophecy of turned out. For the
normal trans¬
speedy collapse is not as exagger¬
strength and a recklessness in its author proposes to consider as ju¬
port of about 150,000 tons a
ated as it sounds.
day, abuse of power that could hardly diciously and
,1 made available by the mines
fairly as he can, the
after have been foreseen in 1932
Although coal production in the the
and
(Continued on page 18)
deduction of their own con¬
Ruhr shows a
1933.
rise, from 178,000
sumption, there must be at least
tons per
working day in August 8,000 cars dh hand
An Objective Approach Needled
every day. In
to 192,000 tons at the
end of No¬ 16
there were under 4,300.
The
Jt is difficult to consider this
vember, transport is
—

♦An address by Dr. Hardy beore
the Public Affairs Meeting
t

the

Chicago Association of
Chicago, 111., Dec. 18,

ommerce,
1946.
•

Vacuum Concrete
r

Aerovox.Corp.*

becoming in¬

Prospectus

HAnover

purely

(Representative)

STATE

AND

Municipal

MUNICIPAL

,i.

;
'

BOSTON

Troy

Street, New York 5

.„

London

Established 1927
INVESTMENT SECURITIES

64 Wall

New York 4, N. Y.

Cleveland

Geneva

at this time in

R. H. Johnson & Co.

2-<Wdtf^\Teletype NY 1-210

Chicago

'vj problem

24)

Common Stock

Members New York Stock Exchange
and other Exchanges

Liberty Fabrics of !%t
New York, Inc.

■:

Hirsch & Co.
|5 Broad St.,

on page

request

(Continued

creasingly difficult because freight

Havana Litho. Co.*,
*

Albany

Baltimore

THE NATIONAL CITY BANK

HART SMITH & GO.

PHILADELPHIA
Buffalo

Dallas

Harrisburg

Pittsburgh
Scranton
Williamsport

Wilkes-Barre
Springfield

New Haven

Woonsocket

WILLIAM ST., N.Y.

Bjondbept.

Teletype: NY

THE CHASE

.'iAv
Members
■.
New York Security Dealers
Assn.

OF NEW YORK

Syracuse

1-708

HAnover 2-9999

Bell Teletype NY 1-895

New York

Montreal

Bond Department

NATIONAL BANK
OF

Toronto

THE

CITY OF

NEW YORK

NATIONAL BANK
of INDIA, LIMITED
hankers

the

ranches

:'':f

FINANCE

SECONDARY

Solar Aircraft

Office:

26, Bishopsgate,
London, E. C.

Colony

India,
and

Burma,

Aden

and

Subscribed Capital
Paid-Up Capital
Reserve Fund^—--!

Ceylon,

conducts every
description
banking and exchange business

rusteeships and Executorships
undertaken

Bond

Gearhart & Company

Prospectus

PLAIN PREFERREDS

for Banks, Brokers

Company

Security Dealers Ass'n.

45 Nassau Street
Tel.

REctor 2-3600

New York 5

Hardy&Co.

Teletype N. Y 1-576

Telephone:

Enterprise

9016

Members New York Stock
Exchange

Broadway, New

York

Telephone:

REctor 2-8600
Bell Teletype: NY 1-635

upon

request

ira haupt & co.

request

Reynolds & Co.

120

Analysis

and Dealers

INCORPORATED

Members
of

New England
Public Service Co.

;

Conv. Preferred

;

Brokerage

Company

Conv. Preferred '

*Twin Coach

Kenya

Zanzibar

Bank

also

90c

MARKETS

£4,000,000
...£2,000,000
£2,200,000

Alloys, Inc.

Conv. Preferred

^Detroit Harvester Co. Com.

Government In

Kenya Colony and Uganda
Head

Acme Aluminum

CORPORATE
-

Members Neto York Stock Exchange
Members New York Curb
Exchange

30 Broad St.

New York 4

Tel. Dlgby 4-7800

Tele. NY 1-733

Members New York Stock
Exchange
and other Principal
Exchanges
111

Broadway

New

10 Poet Office Sq.
Boston 9

York 6

REctor 2-3100
Tele. NY 1-2708

Direct

Hancock 3750
•

Private

Wire to Boston

The Time for Confidence

Trading Market* in:,

Standard G&E Com.

V National Skyways
Old Reorg. Rails

;

Taca

Airways*

Lear, Inc.

;

SECURITIES CORP.
1920

Established

•

Dealers Assn.
Dealers, Inc.
Exchange PL, N. Y. 5 HA 2-2772
N. Y. Security

Conven¬

tion at Atlan¬

"In the year

tic City stress¬

Com.

& Pfd.

Elk Horn Coal, Com.

hot.

Pfd.

but

that

Issued

•,

Savoy Plaza
3/6s,

1956

Savoy Plaza
Class

"A"

<0^^

Vanderhoef & Robinson
York Curb Exchange

Members New

31 Nassau

Street, New York 5
7-4070
NY 1-1548 *,'u

Telephone COrtlandt
.

Bell System Teletype

Byrndun Corporation
Stock

Common

doubt it

expresses

cap overcome

profits"

"Shall

bor,

follow through, from

qntik now?yWhat vis, it now?.
What sort of a financial status do

1944

compared to the
during the war? > Is

they oOcupy flow

their

■

many

pred i

Rockwell
JManufacturi%C<v
Vv;

cur¬

rency.

year

in la¬
in man¬
agement, and

ment,

1939, the year prior
that was accepted

govern¬

t i

o n s

regard i n gA

erica

chances for

Analysis On Request-

prosperity and

/ t

peak perfod

of our

ft .less

•

boom

and

during the
/

new

year)

Steiner, Rouse & Co

there has been

un-/

a/heavy
dertone

T. 1.

of'

f*arftin«on"

Members New York Stock Exchange '

St., New York 4, N. Y.

25 Broad

V: A HAiwwar 2-0700

than, it was in

NY 1-1557

;

New Orleans, La.- Birmingham, Ala.

A. M. Sakolski

Direct wires to

•
^
.<
profit-making aspects of the indus¬ sources,indicate that* profi s for potential danger.
such that Amer¬ the last quarter bf 1946 can reap
"Will there be a depression in
ican
industry could absorb the for American / corporate interests 1947?'! is a question that is on
payment Of a substantial wage in-j a $15 billion profit, predicated everybody's mind as the new year
crease
without
necessarily
in¬ upon that rate for the last quarter
begins. • My very definite opinion
creasing prices.
When argument cf„1946. This is an unprecedented is that a real depression at this
was
adduced by representatives profit. A higher profit than ever time is not probable;
indeed I
of CIO organizations to that ef-j experienced at any time in the
might say is not possible. :,vv.:,v
feet, the employers of labor, in history of American business."
Those who see the present post¬
/ Mr.
Murray's figures were drawn war conditions following the pat¬
making answer, observed that they.
from the; document prepared by
tern of the years immediately fol¬
Would have to seCuffe price in¬
Robert Nathan,
a ^former New
lowing the first World War, how¬
creases.
t r.
Dealer
in
government service, ever, insist that at the best we are
"What has happened to the em¬ whose estimates had, "leaked out"
in for a "recession" or "slump"
ployer in the meantime? What has during the last" General \Mofors or a "thank you Ma'm" in the
strike, apd* werel made public, but, boom highway. A strong argu¬
happened to the employer Inter-'
later repudiated by Mr. Wallace. %' ment can be put forward for this
ests in the United States in this
In other circles, also; post wBf Contention, ahd perhaps the most
higher corporate earnings are be¬ vital test of that argument is the
ing emphasized; and/ on the whole, psychological attitude of both pro¬
and
consumer/ when
it
many companies,: With the notable ducer
exception of the railroads and the comes to making commitments for

oar

breach offices

Birmingham Electric

trial picture were

Preferred

set-back, but

cause temporary

suspicion and fear; at a time when
the peace America occupies the central po¬
wage conside- :
period of 1939? vis it less than it sition in a volatile international
was
rations during
r
during the peak period 1 of situation and when the reconver¬
No. No.
To the contrary, sion, physical and mental, from
the latter part of 1945 and the 1944?
early part of 1946," he stated, "this evidence adduced- facts reported* war is still in progress this lack
organization contended, that the emanating from governmental of confidence is of tremendous
*'

Rogers Peet
Common

f i/

sort/ of

United States;

Hathaway Bakeries
New, When

Com-/

Course

1-1227

o r

wages,
also as

munism.

Stock Exchange

2-4230

Teletype

de- /

constituting

120 Broadway, N. Y. S
Bell

public menace
greater than■

Mitchell s. CompW
WOrth

their

that should! be
used for the purpose of balancing
things' during the war—in the
year 1939, corporate profits'after
.taxes were $5 billjlOh here in the
as

higher

M. H. Rhodes

Members Baltimore

for

m a n

•

to the war—and

point

only as a

basis

May, McEwen & Kaiser
Oils & Industries,

the

•

interesting/

very

•

W. B. Coon,

Mr. Philip Murray in his keynote address
<$>period to wlpch I make reference

corporations.

recent

the

CIO

of so-called "exorbitant

Miich has been made recently
of business

Trading Interest In:

Holds such attitude

future economic trend.

loss of confidence in
may

fidence

I..

TELETYPE NY 1-423

BELL

psychological attitude of both producer and consumer which causes v

psychological good of the people than a renewed feeling of con¬

and abnormal conditions.

Natl Ass'h df Securities
40

recession is not probable, deplores

Insurance executive^ asserting a

Corporation and Mr. Coyle

bees of U. S. Steel

KING & KING
Members

PARKINSON*

' President, The Equitable Life Assurance Society of the U.

of General Motors
inherent optimism of American people*
Stresses need of confiCorporation calling attention to misconceptions of current, profit
v:J dence in the currency. •' ' *
?
*
/ ' * V
»
*
data, and concludes that accounting methods may lead to exaggerThroughout 1947 nothing will be more important to the economic
ation of current profits when viewed in light of present transitory ;/£
and

Prospectus

•With

By THOMAS I.

^
Commenting on recent statements of labor leaders and others that
current business profits are exorbitant and increasing, Dr. Sakolski
points out danger in present situation of computing profits under /,
accepted accounting procedures, Cites statements by Mr. Voor-r

V;By A. M. SAKOLSKI

& Pre feed's

Commons

1947

Thursday, January 2,

FINANCIAL CHRONICLE

THE COMMERCIAL &

Tidewater Power
'-'V

A,'-' /•;. <•>..••. •

•

j.'.

;.: V

;

.'.VV'.yiv „v

North West Utility
7%

•

Plain Pfd.

RR 5s & 5%3

Old Colony

Edward A. Purcell & Co.
;.

Members New York Stock Exchange ;
Members New York Curb Exchange

...

WHitehall 4-8120

SO Broadway

Bell System

Teletype NY 1-1919
N. Y»

New York 4,

,'J-

* -.nV

Central States Elec.
..

(Va.)

Common. Slock

:■

American Overseas

Campbell

Common &

Preferred

L. Douglas Shoe
Common
/;/■' v /,//'■••

Airlines

Struthers Wells
Common & Preferred /v/v/

Sought—Sold—Quoted

''V: -S

H. G. BRUNS & CO.
New York 5

WEtitehall 3-1223

Telephone:
Bell

"■

McDonnell & To.
Members

New York Curb Exchange"

:..:/vTel. REctor 2-7815

Stpd. Pfds.

;

England Co.

Common &

Bell

St., N.

Y. 5

Teletypes—NY

(Continued on page 22)

U. S. FUNDS for

Members N. Y. Stock Exchange and
115 BROADWAY

Stock Exchange
York Curb Exgh. Assoc, Member
York Coffee fit Sugar Exchange
York

WALL ST.,

NEW YORK

TEL. HANOVER

2-9612

use

disputes

■

Established 1923

'' / U

84 WALL ST.

Teletype NY 1-1140

with the real ex¬
and result of compro¬

York Curb Exchange

Members New

and

about ^wages

"'■ /'

// V/,

Frank C. Masterson & Co.

prices and the cost of living con¬
tribute more and more to the pub¬
lic confusion
and hesitation.
If
labor continues to make exorbi¬

Other Principal Exchanges

;

Teletype

how# can

NEW YORK B

HAnover 2-9470,

'*A

statement released by

-/T

Pathe Industries, Inc.

the Financial

■

■■

" 1
Trading Market
.■■////;-■/';. ■/- •• /v.■/■.•: ':■>;V'
■ ■/'

Member New

74 Trinity

York Security

JOSEPH McMANUS & CO.

^Air Products,

FEDERAL WATER v*

CORPORATION

Memorandum

$2.40 Conv.
'■

QUOTED
request

:;V

;

INCORPORATED

Place, New York 6, N. Y.

Telephone HAnover 2-2400
Teletype 1-376-377-378
Private Wirea to Buffalo—^Cleveland—Detrbljt—Pittsburgh*—-St. Louis

STREET

NEW YORK 5

ESTABLISHED 1890

Tel. HAnover 2-9300

Tele. NY 1-1815

{

Com^
'

;

Prospectus on request

Reynolds & Co.
Exchange

Members

37 WALL

:VI

Preterred
I. ' V. :

Universal Winding Co.

J-g White 6 Company
V

Inc. Com. & "A"

Raytheon Manufacturing Co, J

Stock

J;',.?-j\

•

■/

BOUGHT —SOLD

Dealers Association

Mr.

Troster, Currie & Summers •

Earnestly

Solicited for the Building Fund

the Continen¬

Common

;y/V••.: "•/ ■■■■;•.■ yV' V -r;/-;/'

(

District

Your Contribution is

Memorial

War

Syndicate, Brightwaters,

tal Press

;'V;;-V

present large buying

Parkinson through

NY 1-672

Victory Church

expect/. art

(Continued on page 28) •

& GAS

•V

Lady of

Our

long-suffering pub¬

N. Y.

For Banks, Brokers & Dealers

Sugar

FARH & CO.

120

ring

V VVV'V

get

well

may

where for one
another they will delay
of that money. Recur¬

lic to use its

NEW YORK 6, N. Y.

;

Telephone BArclay 7-0100

,-.y

New

reason or

their

people

state of mind

innocent and

Canadian Secnrttles Dep't,

Goodbody & Co.

Dealers Assn.

Quotation* Upon Request

New

creased,

Haytian Corp.;

New

into

Investing

Common & Preferred

management contin;
ues to broadcast the possibility of
ruin if labor's demands are met
or if rates and prices are not in*

CANADIAN UTILITIES

Works

ytV^y-v> .Vy^

Members

Fred F. French

mise; and if

CANADIAN MINES

Hanover 2-4850
1-1126 & 1127

Punta fllegre

American

pectation

CANADIAN BANKS

Preferred

Members N. Y. Security

"The,. Chronicle,"

);/.

^reenecmiCompon^
37 Wall

(see.

CANADIAN INDUSTRIALS

Products

United Piece Dye

Avon Allied Products

tant demands

General Aniline & Film A

Standard Thompson

"Times",

-y/,,,-

sanie

C. F. HUghes;

Editor' of the New York

Business

We Maintain Active Markets in

Foundation Co.

Northern New

of the

comment

R.R.

Boston & Maine
'

Comment.

character comes from

BROADWAY, NEW YORK 5

120

;

C» F. Hughes

Strdrig

'■•>/' V^i'V/

// New York Stock Exchange

1-1843

Teletype

concerns,

'j.e

20 Pine Street,

Citizens Utilities Common

have re¬ the future. This .attitude rests
profits over the. squarely on confidence or lack of
war
period when excess profit ft. /:v; ;v:;
taxes were in force ahd when war
Even with plenty of money in
contracts
Were; ' being /; ichiselfed their
pockets and A long back-log
down by renegotiation.
' -•
of things they want to buy, the
-''"V.J
automobile

ported improved

120

New

York

Stock

Broadway, New York 5,

N./YV j

REctor 2-8600
Bell Teletype: NY 1-635

Telephone:

Volume 165

Number 4556

THE COMMERCIAL & FINANCIAL CHRONICLE

The 1947 Stock Market

INDEX
.1'

| f " \

Articles and News

By RAGNAR D. NAESS* V '

Page

Do?"

<;'• ---Frederick E. .Lee

|;^5jermany's

-Galen

van

J'_-l-i'-'.l_Cover;

<j-The Financial Outlook—Charles O. Hardy
Are

3': The 1947 Stock Market—Eagnar Dl'" Naess

| vRepeal of Maloney
i

«.

J*,

-ii—.1

Act Advocated (Editorial)

Warner 4

Outlook for Brazil—Robert L. Heilbroner

;

then decline again to

i::|2£^An|£niQ;,.Giordanq:;w^
1

72 NYSE Firms Form Committee to Fight Issue of Permissive

%
h "The Facts vs.'the Nathan Report—Jlalph W.Robey
f A National Labor-Management Conference Needed

,•

—

■

Ragnar D. Naess

|;■- *' Vi^alter P. Heuther
r—
-| Fallacies of Nathan-CIO Assertions^-Emerson P. Schmidt
Trade Agreements Program Believed in No .Danger
—Herbert, M. Bratter
Ljz-l—LJ——;

8
8

—

■,

—

[ Britain Bases Peace Policy
I

market

11'

Stick

Recent

Decline Temporary—Charles A. Taggart.—12

f Sees Continuance of Good Business—George

E. Price, Jr.

dull

for

num¬

precipitous

[

Naess, partner in Naess & Cummings,; before Association of Custorhers Brokers^ New (YorkyCurb
Exchange, Dec. 17, 1946.

Colmer Committee Recommends Self-Sustaining Germany

International Monetary Problems

able to

*Base(l

"Johnson,'QuitsDDX";^

■,

IBA Urges Easing of Margin Trading Curb

Truman Proclaims Hostilities' End
N. Y. "Herald

Tribune"

Increases'Prices

off Issues

Company
Mortgage Certificates

Surely,
strong case,

make-a -very

GOLDWATER, FRANK & OGDEN

going through is on a
very : large /scale,'
and ;-that our
economy - today - is running on a
pretty much "all; out" basis. ' An¬

address

is' that: the

since

last

some

have -been

third

New York Security

Finds Decline in National Income Growth—Simon Kuznets-- .10
World Bank Outlook

seems

i Allen

; on

End r—i—C-'—13

IftdderrPeabody'drCo.

Regular Features

our

i'
Our Reporter's Report.....' 47^

Oatikdian

Dealer-JBrokec investment
Recommendations

Railroad"

•*''

Mutual Punds

».

Observations—A.

Wilfred

Securities':-'..v.-,...-18 -:

Estate Securities,

i",

May..,

Securities Now

Reporter on Governments'15

Registration..

Tomorrow's Markets (Walter

;

; 1 ^;
40

•:k.

24 -y

Whyte Says)

Washington and YouA...vr

Reilly &Co.,inc.

New York;,

•

Pobllahed Twice Weekly

York.

financial chronicle
U. S. Patent OHlca

«• '< - -25 Park Place,

■

ffEBBERT D. SEIBEBT, Editor & Publisher
WILLIAM

DANA

SEIBEBT,

r
'

Thursday, January 2, 1947

Every Thursday (general news and ad¬
vertising issue) and every Monday (com-

frtete statistical issue —market quotation
records, corporation news, bank clearings,
«tate and city news, etc.)
\ *"•,
'i

■

provide; that

«Ago

:
"

out -

•

sore

Registered securities association

may

Union,

$26.00

per

Canada,:.; $29.00

Countries.

$33.00

per

are

by such member accorded

JliKiaS
j

the

Broadway

(Continued

Other: Publications

Bank

and

Quotation

;;

Reentered as second-class matter Pebru-:
.mry

25,

1942,

the

post

office

New

TITLE COMPANY

in New

Lea Fabrics

I*!1:!;:'' U. S. Sugar

Class A Common Stock

Tel.:" HAnover* 2-4300

INC-r

Alb&ny

v::

Broadway

'■

•

Board of Trade Bldg.

Boston

Glens Falls '

Coca-Cola

WHitehail

-Worcester

Bottling Co. of St^ Louis

Telephone: 3-2137

Wire

Boston

Macfadden
~"

Publications, Inc.

•

6s, 1968
*
•

Public National Bank

& Trust Co.

•

National

Radiator Co,

CHICAGO 4
Harrison 207fc

"
.

Teletype CG 129

Bldg., Miami 32

■

York'—Chicago—St. Louis

Kansas City-—Lot

*~ir.■

Teletype MM 80

Direct Wire Service
Now

3-0272—Teletype NY 1-956

uv::; Private

Coca-Cola

Bottling Co. of Chicago
Coca-Cola Bottling Cp^ of Los
Angeles
Panama Coca-Cola
Bottling Co.
;®Red Rock Bottlers, Iiic. (Atlanta)

25 Broad St., New York 4, N. Y.
*

Schenectady

request

Members New York Security Dealers Assn.

Tel.t Andover 4690

DUNNE & CO.

gurb Exchange

Angeles J '

HOIlRQSE § IkSSTER.
ESTABLISHED

1914

* Analysis

Teletype NY 1-832, 834

;

York

»Prospectus

■

I ftv Coca-Cola Bottling Co. of New York

Security Dealers Assn.,

NEW YORK 4
5

New

Teletype—NY 1-5
v

STRAUSS BROS.
Y.

Members

Broad-StreetsNeW; York 41-.~ 135 ^ S. La Saile St.r Chicago 3

Exchange

Commodore Hotel,

Susquehanna Mills

Amer. Furniture

•*

^Fidelity Electric Co.
,

Members New: York Stock

Members

Alegre Sugar

;

Graham-Paige 4s,'56
Plymouth Cordage
Ray-0-Vac

Pan American Bank

| |l5 Broad St, Pi.Y. 5 ^ WHitoHaU 4-€338
vJ
Bell Teletyp* NY t -2033

Record—Monthly,

York funds..

DIgby 4-8640 •

|| ! Kembert New York .Stock Exchange

• •

Spencer Trask & Co.

N. T. Title & Mtge. Co.

Newburger, Loeb & Co.

PREFERRED STOCKS

Lawyers Mortgage Co. [

;

interested in offerings of

are

"the rate of exchange, remittances for for¬
eign Subscriptions and advertisements must

Bond & Mtge. Guar. Co.

Prudence Co.

Punta

High Grade Public Utility and Industrial

made

Assn.

^
^ WOrth 2-0300
Teletype NY 1-84

Haytian Corporation

Note—On account of the fluctuations

cm'

to. /flfcv

Eastern Sugar Assoc.

page 29)

•$25.00 per year, i (Foreign postage extra.)
Monthly
Earnings
Record — Monthly,
$25.00 per year., j (Foreign postage extra.)

CERTIFICATES

Lawyers Title & Guar. Co.

year.

; y

Bell System

year;

per

■*'

Members New York Security Dealers
170

^
Although the permissive word, "may1' is used, neverthe¬
less, the NASD has put this section into operation and if its

U.' S.

year.

f|i New Year

Members, .o(

and

.•

Happy :3|
Prosperous

and

iV.-

', f

philospphy ^whplly; alien tp

and conditions

■\-;*yy.y- >

•|

March

United: States,

Chicago

To Our Friends

'AVI^'.VVV.'ii'

member-fhereof shall deal with
any nonmember broker or dealer * * * except at the same prices,
for the same commissions or
fees, and on the same terms

.Other Offices:

135 S. La Salle St., Chi111.' (Telephone: State 0613); 1
Mrapers' Gardens, London, E. C., England,
«/oEdwards & Smith.
•
-v

Dominion,Vof
Other

Territories

-Pan-American

President

WILLIAM D. BIGGS, Business Manager

Act

;/'.
"

Subscriptions

$&£

the

Subscription Rates

under

Possessions,

New York 8, N. Y. Ml

REctor 2-9570 to 9576

Y.,

WILLIAM B. DANA COMPANY, Publishers

1,1879.

The commercial and

;

Securities

generalpublic."

{

vulnerability of the Maloney Act

It provides:

<<rThe rules of

Securities Salesman's "Corner.

Einzig—The "Undervalued?
Sterling
.1.-.

; Our

Real

thumb;

Securities..'.?.".;.V\13 4

Public Utility

J.F.

for abceptanbe of alien creed.

pitfalls,
these, - Section 15A(l())(iXl) sticks:

•

Prospective

Securities.......

Request

mmm ~~

give intermediate relief

periodic transcontinental junkets

American way of life,
Let us. examine some of the

•
■

rBusiiiess ;Mah's^^ BobkshelT

Pot take

/ The fact that, it creates

Prospectus

way

;4Bank and. Insurance Stocks...,^

.which gave .rise'to the National, Association
Dealers?

NASD should

(What: is: ^the., chief

^48

'Chaise uf Uhfair Labor Practice Brought iy IJFE Against

"A"

due notice aiuf adequate discussion portrayed. Executive Direc-

make propaganda

T_—

Nation Well Off Despite Liabilities—Heimann »-L-

laboratories

.Special privileges to fractional segment of securities field -

tor of

'0*.

Anglo-Brazilian Commercial Understanding

B. Du Mont

^decried.. Opportunity of NASD Board

Multilateral, Non-Discriimnatory Basis 14

Small Issues Final Report

life.

inevit¬

< seems

one

considerable; agreementthat' soft
goods lines [will not continue at
(Continued on page 28);,
"V

philosophy alien jto ou'r Amencan

Dealers, Inc.

Causing Congressional Dissatisfaction 11

Sees ?War Honey
moon"^Approaching

Wants Int'l. Trade

Malbney Act; created;

;
-

of 1

Dealers Assn.

National Assn. of Security

downward read¬

by' Mr. justment in; prices
able.

price - advances

summer

Teletype NY 1-1203

Member

■

other

Broadway, New York, N. Y.

HAnover 2-8970

Repeal of Maloney Act Advocated

--------

js1'

WHitehail 4-6551

•

dogs.

list. V:;-.

your

*"•*

A. S.

prices

and

WALL STREET, NEW YORK

of " apprehension^
regarding

sharp that

Higher Wages Needed to Keep Prosperity—Philip Murray^-

;

f: stock;

decline in September. i. There segm to be at least three

;k Expansion of U. S. Conciliation Service—Edgar L. Warren—.
j * AFL for Unity; at Home and Abroad^William Green-^

_are.

some ^measure;

been

high

Wall Street

Title

have

ber of wbeks after the.

has

Telephone:

of those; periods at the
present time.

one

which

pf§

the

cats
to

Offerings Wanted

The International Fund and Currency Parities^

•I

reflected '£ in

the

for

{ Obsolete Securities Dept.

1 11

Unity for Progress—Henry A. Wallace.,

who

laws.'"^;-:--^-^

new

■

developments next year are also^>abl£ to find considerable ammunb points, of agreement
among, most
tion to -muster appealing- argu¬ observers; One is
that the boom
ments. This division of opinion i$ we are now

UN—Ernest Bevin—2

those

send

hear

pay

the crowd

Anyone

optimistically inclined

while

? /'

A Return to Fundamentals—Wm. A. Spanier^-i .10

those

they

-U--

-when
that

dealing with investment policy finds
that there are certain
periods during which it is
more than ordinarily difficult, to
^appraise and
judge the outlook, and I have a hunch that we are

7;i.
'

Incorporation—Edrnour Germain J-..1

GETS INTO THE ACT

of government

spending and (f) doubts about
sufficiency of consumers' buying power. Regard¬
ing 1947 stock market, concludes prices will recov¬
er
moderately further * during early months, and

EVERYBODY

'-3

Nationalization Threat Slows Foreign Investment in Italy

[

What Case Against the German Bankers?—Adolphe J

j: The Industrial

;

li..ICover •'

Corporate Profits Exaggerated?-—A. M. Sakolski

The Time for Confidence—Thomas I; Parkinson

Analyst first cites following favorable factors: (1) large deferred de¬
mand ;
(2)vavailable savings; (3) backlog of foreign trade; and
(4) improved labor outlook. He then states fol¬
lowing as warranting caution: (a) present rate of
capital investment may not last; (b) rising costs;

Economic Crisis—J.

»LicHTcnsifin

;

AND COMPANY

fV Labor Turmoil Ahead: "Now What,

'■

:;'V

Specialists in Soft Drink Stocks
;
^
; 74 Trinity Place, New York fl, N. Y.
f
Telephone:
'
Teletypes:'
'

rhv.

C. L

BOwling Green 9-7400

;

NY 1-375

—

Members

61
•

NY 1-2751

m-'.•*

upon

Request
\

■

Unterberg & Co.
N.

Security Dealers A«s'n

Broadway, New York 6, N. Y,

Telephone BOnding Green 9-3565

;

Teletype NY 1-1663

the commercial & financial

Thursday, January 2, 1947

chronicle

Against ;#

What Case

German Bankers ?

The
ACTUAL MARKETS
IN 250

ACTIVE ISSUES

Abitibi Power

Buckeye Steel Castings
Cinecolor

Chicago R. 1. & Pac..
•

Old

Pfd.

Diebold Inc.*
District Theatres!

Douglas Shoe*
Expreso Aereo;

General

Machinery

iMfe

Gt. Amer. Industries

Hartford-Empire Co.*
Higgins Inc.

Hydraulic Press
Lanova

Majestic Radio & Tel. §
Michigan Chemical Minn. & Ontario Paper
Missouri Pac.
ow pfd.

Mohawk Rubber*
:

N.Y. New Hav. & Hart.

War Department

Richardson Co.'

Misinterpreting the Functions

Customer's Man!"

The Industrial Outlook for Brazil

for military security does not im¬
ply War Department indorsement
of factual accuracy or opinion."-*

Purolator Prod.*.

Department has no

War

"The

objection to publication of sub¬
ject article on grounds of military
security. Review of this material

Pfd-

Philip Carey

f'Miss Parkerj ( Think You're

for publica¬
tion with the following notation:

Moxie
old

cleared by

This article has been
the

The Editors*

•

Rockwell Mfg.

Taylor-Wharton*

*Hungerford Plastics

^District Theatres

Tenn. Products

•

Upson Corp.*
U. S. Air Conditioning

.1'-

'-'a

,1'

./f

•

fMetal Forming Corp. *Dumont Electric

)/.

/V'/

;

"•

' 1 J

•.!

%' \

;

United Drill & Tool "B"j

Available

Prospectus

Vacuum Concrete

S2 Wall Street
.

CORPORATION

FIRST COLONY

Alabama Mills*

Aspinook Corp.*

New York 5, N. Y.

Teletype NY 1-2425

Tel. HAnover 2-8080

N. J. Worsted, New

Textron Wrnts. & Pfd.
Bought

Birmingham Elec.

r*.\;

^ '

l% 5

Sold
1

t -

" '

' r U

Quoted

k ' '• *

'L *

national company

Cent. States Elec., Com.

eastern Corporation

Derby Gas & Elec.
New England P. S. Com.

queens borough gas &

electric co.

6% Cumulative Preferred

Puget S'nd P. & L. Com.

Central National

Scranton Elec.

Standard Gas Elec.

■

tProspectus Upon Request
0Bulletin

Circular

upon

Corporation

ESTABLISHED 1927

Southwest Natural Gas

22 East 40th Street,

New York 16, N. Y.

Teletype: NY 1-2948

Telephone: LExington 2-7300

request

OSGOOD COMPANY

♦Hovingf
*

Earnings past three years about
Net current asset value

share.

Members N.Y. Security

$2.40 annually.

(Dec. 31, 1945) $12.60 per

Stock selling about $9 per

share.

Circular upon request

N. Y.

1-1286-1287-1288
Direct Wires To

Incorporated

Members

New

York Security Dealers

Broad Street, New

York 4

■

Pfd,

Happy and Prosperous
New Year

*Prospectus on request

Seligman, Luhetkin & Co
*

Angele3
ENTERPRISE PHOHES
Uartf'd 6111
Buff. 6024
Bos. 2100
Phila., Chicago & Los

J.K.Rice,Jr.&Co

HAnover 2-2100

SIEGEL & CO

Established 1008

Association

All Our Friends

Aeronca Aircraft

U. S. Finishing Com. &

Dealers Assn.

Wishing

Corp.

Capital Records

Members

REctor
Bell

Security

2-4500—120

Dealers Assn,

Broadway

System Teletype N. Y. 1-714

Broadway, N. Y. 6

DIgby 4-2370

Teletype NY. 1-1942

Volume

165

Number 4556

THE COMMERCIAL & FINANCIAL
CHRONICLE

Firm Name Is Now
Lee W. Carroll & Co.
NEWARK, n; J.—John B. Car¬
&• Co.* 24 Commerce
Street,

roll

that the firn»- name has
changed to Lee W. Carroll

announce

; '

expect miracles in speed 'from the
Congress convening
Friday.
Congress reform is akin to New Year resolutions—to be
promised, talked about, but rarely realized.
In the new Congress,
habits won't change much.
There will be less genuflecting to the
White House, but if you're
expecting ascendancy of statesmanship
and decline of
politics, with resultant benefits to the public, better
get set for disappointment.
<§>
of the

Talk, deliberation, delay will
>

continue

;

months.
be

will

•

skeleton

the

making

Hillers

cans

unless

ocrats,

by
-

•'

But

sessons.

with

less

won't

chatter,

'■* t-v'*' ■■■■'<;;

■"/

and

control

assume

almost

House
nil.

with

choice jobs for themselves.
has

the"; leadership

ended

Republicans will be in

lack

the

tough

goadsmen

(Continued

on page

lossal

instance

other

Powers,

wholly

and

as re¬

Phoenix, Ariz.

;

•

of violations of its terms, the Russians
• the
fact that no country is,

CANADIAN

overlooking

ar<e

the

first

place

being forced to join the

its

attitude

bluff

toward

and/or

nerve

the

United

con¬

SECURITIES

States:—it has through co¬

maneuvered

the

United

States

into

&; Bank of Montreal

ap¬

Bank of Nova Scotia

willing to do—but additionally demand¬
to disregard the rules for its joint use,
and thus to make the joint
contract, to which she herself has contrib¬
uted nothing, not worth the
paper on which it is written. Stripped of

likewise.

act

But

Mr.

position" of the recipient of

Gromyko

Bank of Toronto
Can. Bank of Commerce

enough.

Imperial Bank of Canada

;

•

by single individuals.

ralissimo Stalin has recently become known
Moscow while his Foreign
Minister, Mr.

the'developing of home

Royal Bank of Canada

&V/.

But, unfortunately, it is not only with regard to the armament
issue, but with respect to every international issue that
arises, that
the: Russians continuingly evidence mo basis for
confidence in con¬
sistent cooperation from them.
Thus, the "audience" at the interna¬

HART SMITH & CO.
(2

Jby .funds secured abroad, at 68 or
70 milliards of lire.
A large share
of

this

would

sum

building

public works.,. Moreover, railways

Bell

Thus, Gene¬

used

and

port-facilities must

recon¬

existing

tram¬

ways

nomic reconstruction of the

Overseas

coal

coun¬

strikes

have

coal

imports and jeop¬
ardized revival; for this reason it
is necessary to organize
output of
home fuel.
Unless this is done
and both fuel and

structed.

fic

basis sufficient

on a

ior national power
demands, the
.event of the
emergency could cur¬
tail any reconstruction
program.

Plans have been completed to
; adequate
home supply

en¬

sure

milliards of lire.

needs

tions

are

consequently loans
negotiated abroad. ; V

.•

industries1

assistance
are:

foreign

with Mr.

Molotov's recent notes of sweet reasonableness
in our press) and Mr. Gromyko's recent ab-

large
has

American Beverage

(Continued

on page

Preferred

33)

and

PETER BARKEN

por¬
been

the

means

(so hopefully haijed

TRADING MARKETS

American La-France

Maxson Food Systems *

Buda

Broadway, New York 4, N. Y.

Marmon-Herrington
Pratt's Fresh Frozen Foods*

daily transportai
tion of workers and
carrying out
of projects
for building under¬
ground /railways so that workers

Dictaphone
Florida Portland Cement

Standard

may -

General Public Utilities

Giddings & Lewis

Suburban

Tel. WHitehall 4-6430

Standard

their

bys moved more speedily
daily tasks.

to
;

Negotiation with Swedish and
Swiss

;

between

Girdler

Italian" and

place.,; Both

to dealers & bankers

non-Italian

capitalists have taken

Prospectus available

(Continued

page

31)

■

and

need. of

investors

United States Government
State

MAHER & HULSEBOSCH
•
.

F. BLEIBTREU & CO..Inc.
—

Public

■

Street, New York 5,

Whitehall 4-4970

...

Foreign Exchange
Gold

—

Silver

—

Platinum

79 Wall St., New York
5, N. Y.
•

Telephone

HAmover

2-8681

Hudson

Dravo

Corp.

;./l

•

American Maize Prod.

...

201 Devonshire St.

Common
—

Sold

—

Trading Markets In

;

Allan B.

;

'■Facilities

(Va.)

Du Mont "A"

■

Quoted

•

Loft

Candy

Christiana Securities

Verney Corp.^

FREDERIC H. HATCH & CO., INC.

Boston 10
Experience
•
J or Investors

1-2613

St., Jersey City, N. J.

Central States Elec.

Members New York Stock
Exchange

Knowledge

Teletype
NY
Office

Utility

Bought

New York 5

Securities

New York 5, N. Y.

Branch

R.W.Pressprich&Co,
68 William St.

Dealers

WHitehall 4-2422

Domestic Unlisted Securities

Investment

Telephone

Teletype NY 1-609

Investment Stocks

Foreign Securities

Brokers

113

BONDS

DEALEjRS

62 William St.

and

Municipal
Railroad^ Industrial

Philippine

Mining Issues

70 Pine

Only

G. A. Saxton &
•

"c, Canadian
Propane-Gas

United Transit*
*

Tele. NY 1-2500

Specialists in

Milling*

Tenn. Gas & Transmission

Grinnell

Capitalists

Important financial negotiations

automobile, shipbuilding and

BROKERS

Milling

Albert FHck

Carbon Monoxide Eliminator

;

In line

Vj Other

Toronto

Milan,. Genoa

In those areas
of the populace

project

cannot be acieved with
only Ital¬
ian funds and
must be

services

outlay of 460

So vast

bus

displaced from the cities and has
migrated into the suburbs.
This

power of approximately 30 mil¬
liards kwh. annually.
To accom¬
plish this will require new elec¬

tric centres and

Today,

and

Rome.

hydroelectric .shift

output placed

San Carlos

York, and lesser
concerted action almost

longer adequate to maintain traf¬

reduced

1-305

Montreal

American Insulator

"the appeaser" from

Molotov, is simultaneously
and New York, Mr.
Gromyko

by rote.

HAnover

Teletype NY

<electic companies upon whose in¬
crease
in capacity rests the eco¬

try.

WILLIAM ST., N. Y. 5

ar«w York

hurling his lethal verbal blitzes in Paris
is staging his walk-outs and
filibustering in New
Soviet committed members £ are
blqcjking

necessary , for the* re¬
of^Jeading towns?, and

Dominion Bank

placing himself in the
gift'complaining that it is not large

MILAN, ITALY~The question of investment of foreign capital in
Italy is of paramount importance to Italian businessmen.
They estimate
works

absurd

points out,great neeil for foreign capital/ estimatedJaf"
Greatest demand by electric companies; but also *
tional scene, including the reading public and the actual observers
by auto, ship-building,; and general construction and equipment,
at the Council of Forbign Ministers and at
the United Nations ses¬
f
industries.
sions, is completely bewildered by the succession of
Negotiations for foreign capital previously underway,
contradictory
manifestations of polity emanating from the Soviet. These
are now stalled
include
by threatened nationalization. Latter policy may;
both inconsistencies between her
individual representatives, as well
be prevented by resultant burdensome drain on
as successive self-contradictions
Treasury. -

financial requirements needed

pre¬

with

Co., 20 Exchange Place, New York
City, died while on a vacation in

which it is most generously
ing that she have the right

least

70 milliard liras;

■

was

Edward G. Daniels, Vice-Presi¬
and Treasurer of Lobdell &

Weapon's manufacturing know-how, is willing to pool its
knowledge
and itsfelf-td submit to a rule
effecting the necessary safeguards;
then a country not having the bomb nor the
knowledge, should at

GIORDANO

Reilly

dent

all communist-front
"Wallace-isms," Mr. Baruch's position merely is
insistence that if the United States, as the sole
possessor of the

M. Giordano

Mr.

many years

Edward G. Daniels Dead

pearing to negotiate over details. But actually, Russia is not only
demanding that the United States turn over its exclusive secret—

20)

Foreign Investment in Italy
ANTONIO

first

Nationalization Threat Slows
By

the

Salle Street.

Leason & Co.

words in the absence of
at

reduc-

implementing action is called for,
stand in obstruction against their

the

viously for

trol plan. '
In

White House.'

they

May

gram can be bullied to

Further*,

purpose.

sequences
A. Wilfred

enactment,
rather must travel
slowly, compromisingly and amendedly to the

common

Chronicle)

In the

(Special to The Financial

CHICAGO, ILL. —Lambert E.
Reilly has becohie associated with
Link, Gorman & Co., 208 South

deed of

Russians

lated

imbroglio

no po¬
sition to steamroll legislation to
enactment.
They lack cohesion,
^

Reilly With Link, Gorman

balance-of-power

—

y>:vis-a-vis the United States.;;Related to the other
Powers—in insisting that a willful violator of the
;■ treaty shall
be legally protected from the con-

post-election
hand¬
shaking.
This all sifts down to
one conclusion: no
legislative pro¬

world-wide

The Russian attitude is wholly illogical

party

$ At j;j national

by capricious judg¬
timorous policies.
In the

House,

...

'y? W'';;

which

younger Republicans are
mad because the oldsters
grab all

speed, or thinner "Congressional
Records."

•"Allies."

ment,

But

\ the

Senate,

mere

confirming deeds.

headquarters, V Chairman Carroll
Reece
nimbly makes - enemies,

coming session

'■

by the 54 nations in the Gen¬

peace, must remain

they

:'vl;•.'■

V:;■/

passed

Assembly, calling for

tion of armaments in lieu of

Being

loses friends

be saner, sounder, more sat¬
isfying to the nation at large than
was the financial
legerdemain of
recent

else.

factors,

,•

Senate

will

achieved

•

peace

•

such

Republicans

result of the

v.-

Budget cuts

Only the
legislative tyros will aspire to
roll up their sleeves
and remake
the country hurriedly.,.
;;
6

f."

how to vote

destitute

Republi¬

will find it expedient to logroll
dicker with insurgent Dem¬

in dribbles.

come

'$,Erid

resolution

House

Unfortunately, her continuing attitude toward the proposed and
adopted atomic energy measures—encompassing
the entire world armament question—is both be¬
wildering and discouraging the public. The pious
eral

told

umvirate

will

goaded

are

bomb control.

when

era

& Co.

by her attitude toward atomic

the Longworth-Tilson-Sncll tri¬

sup-

legislation

big strikes.

•a

Labor

long

Capitol

the

porting the congressional body.
Tax bill won't be enacted for

•

pre-New Deal

been

UN's "RUSSIAN NEW YEAR" ;>

•;

Although Russia does not,begin her own New Year until Jan. 14,
the year 1947 for the United Nations will be Moscow-dominated
right
from Jan. 2 on. For the dependence of UN
progress on Russia's be¬
havior will be immediately keynoted

Don't

;

'/■

■'

Established 1888
.

63 Wall

MEMBERS

SECURITY

Street, New York 5, N. Y.

DEALERS

Laird, Bissell & Meeds
•

ASSOCIATION

Members

120

New

Telephone:
:

Bell Teletype NY 1-897

York

BROADWAY,

Bell

Stock

Exchange

NEW YORK

5, N. Y.

BArclay 7-3500

Teletype—NY 1-1248-49

BALTIMORE

Baltimore

72 NYSE Firms Form Committee to

Transit

All

Co.

Bayway Terminal

.■

Radio

;

stein bros. & boyce

opposing

LYNCHBURG
2-3327

Berkshire Fine Spinning Assoc.

Naumkeag Steam Cotton

committee

der,

Lynchburg, Va.

publication of an

Wit h

undervaluation A an abso¬
lute blessing and overvaluation ari
absolute evil, that it takes ai little
time
for
them
to realize
the

entitled.

the

certain -that

feels

cause

not

Stix & Co.
SECURITIES

■

-?*<;

v>,-.

Federal Street,

Tel. Hubbard 3790

Exchange

permissive

Utah Power 6*

Light

the Maynard men

decision

:■'.

Light Co. ;1|

few

BUILDING
9, IOWA

...Salt Lake City 1, Utah
BELL SYSTEM

2?.

TELETYPE SU 464

JACKSONVILLE, FLA. §2
TRADING MARKETS
for

Foremost Dairies, Inc.
Winn & Lovett

BROKERS and DEALERS

■

UTAH

Grocery Co.

MINING

Established

Clyde C. Pierce Corporation
Nat'l Bank

Jacksonville

%\ Long Distance 47
Branch—St.
♦

;;

Bldg.

Florida

BROKERS

Exchange Building
Salt Lake City, Utah

Teletype JK 181

Petersburg,

Fla.

2,.

Stock

1898

Members Salt Lake Stock Exchange

*v"?

Teletype SU 67
•

Phone 5-6172

-C—»—•—D-r—»—o—o—o—o—o-

American Air Filter
American

Turf

Consider H.
Girdler

Willett

Corporation

Lovett

SECURITIES
For Immediate Execution of Orders
or

Quotes call TWX Sp-43

Exchange

A.M.,
other

Pac.

from
Std.

10:45

Time:

Floor
11:30

Sp-82

hours.

Grocery

CORPORATION

BANKERS BOND £2?
Incorporated

Floor* Kentucky Home Life Bldf.
LOUISVILLE 2, KENTUCKY

Long Distance 238-9

Bell Tele. LS 180

at¬
the

Members Standard Stock Exchange
of

Brokers

Spokane

Dealers

the

Underwriters

Peyton Building, Spokane

Business Survey
..

CommitteeoF National Association .of Purchasing

Agents, headed by George E. Price, Jr.,

every

six

covers

Kellogg, Idaho and Yakima, Wn.

member

of the Ex)-

partnerships and the sixth

point that incorporation is really
disadvantageous to junior partners
are
illustrated in the data given
table.

Regarding the first

point, the booklet also has this to
say, "A number of firms have had
the tax aspects of incorporation
carefully examined by their ac¬
countants or lawyers. The conclu¬
sion is that due to the double tax¬

imposed

ation

profits

of Goodyear Tire & Rubber

TGo;, holds business is gaining stability, and barring major difficult '
ties, industrial production should go along satisfactorily. Sees no
runaway prices, but. says unbalanced inventories are still major
problem. Looks for decline in mercantile and commercial inven- .
tories -and reports employment as "taking a decided jump."
V
'

and Canada are,of thq
and should continue good fof

Ipdustrial buyers in the United States

general opinion that business is good

are

when

distributed

disturbed

less

conditions

other parts

the

world,

according to a
report of the
Business

Sur-

Commit¬

>vey

tee

f ' the

'.National

■;As¬

sociation; of
Pure hasin

Agents, head¬
ed by George
E. Price, Ji*. of
the
George E. Price, Jr.

Goodyear

Tire and Rub-

dency; and,; reports

generally

ac*

cepp prices as being reasonable
under present conditions. No run¬
away market seems in the making.

"ReportsVindicate that^f inspite:
continued; gradual A trend
upward, the rate of increase has
~

of. the

slackened, and we are approach¬
ing a leveling off of commodity
prices, arid; perhaps, a turn down*
This, of course, could be very ad-*
viefsely influenced.;. by ; another
siege ;of strikes and? labor disturb^

ahces;;'#22
•

"Canadian

buyers,

r e p or

climb in prices; partieiH

steady

imports. There are, how¬
2
\
ber Company; ever, evidences that .heavy. pror»
i:\ Thje-report states that "Business diktiQh;in;the United fltates^plus
bp^ears: to
gaining? stability the farm production carry-over,
andV in thi? respect, is better than may have some softening effect
at any time during the past' yeaiv on prices..1
? ;•
;s
Barring jmajor labor difficulties;
Inventories
:
industrial, production should go,
*•'. '.'There is practically no change'
major along very satisfactorily. " '
in the general inventory situation

change. The first point which is
that tax considerations generally

Branches at

Sees Continuance oi Good Business

booklet

the

(Continued on page 19)

sometime un-^-

tion, pointing out in the accom¬
panying table (see below) pre¬
pared for the booklet by; Haskins
& Sells, the tax advantage for the
junior partners and for all. part-:
ners
earning up to about $50,000
a year is entirely on
the side of
the partnership.
1

favor

eign exchange is obtained for the

ning to be realized at the Treas¬

poration would help the|p to build
up their equity in the business.
As they see it, the > partnership
discourages the formation of cap¬
ital. They think that the tax laws
favor
the
corporation and , they
would like to see their firms in¬

upon

concerned

currencies

grossly overvalued in relation same quantity of exports.. So far
to Sterling.
The significance of
from improving the trade balance,
this state, of affairs is only begin¬

are

- Agitation
for permissive incor¬
poration, according to the oppo¬
nents, has been coming largely
from
junior partners
who 2 are
under the impression that incor¬

STANDARD SECURITIES

1st

points which the Maynard com¬
mittee is attempting
to impress

NORTHWEST MINING

Ass'n

Murphy Chair Company
Winn

that

to the

The

KANE. WASH.

LOUISVILLE

which

that they too might
reap the benefits, which these laws
provide. However, the Maynard
committee
disputes this conten¬

W.H. CHILD, INC.
•„

Florida Municipal & Corporate Securities
Barnett

now

facts should

brought

corporated

"STOCKS

Common & Preferred

pertinent

very

Einzig

repetition of that experience on
much larger scale.
It came,

,'
...

160S. Main Street

Bell Tele. DM 184

Preferred

felt,

Exchange.

&
COMPANY
ESTABLISHED 1898

pamphlets and

tention of all the members of

EDWARD L. BURTON

Bought—Sold—Quoted

Common

Ames':

the question is due a

probably

3.30% Preferred Stock

MOINES

Exchange, and;

personal solicitation to arouse in¬
terest in the issues involved but,

Amalgamated Sugar

DES

the >question: "oft
incorporation among

aside from the efforts of the

Sugar

on;

committee through

2-v.. ,vvV--v; ,'A*

EQUITABLE

partners o{ the, firms with
wjhich thpy are associated has be2
come
listless in recent months,

Iowa Power &

Phone 4-7159

the

Utah-Idaho
-

the members of the

SALT LAKE CITY

INCORPORATED

•

2 Discussion

Paul

Dr.

Monetary
Fund
;
In conditions, prevailing now
produce a menace from an noiie of' the above considerations
exactly opposite direction, that of bold good.
Britain's exportable
the Undervaluation of Sterling.
su^lus is limited, and no amount
There can be n o doubt that, by of stimulus through: an undervalaccepting the rates; declared by uation of Sterling, could .increase
the
member f • Government,
the the total quantity of exports. > On
Fund gave its blessing, in .a great the other, hand, if Sterling is un¬
many,
instances, to parities at dervalued it means that less for¬

but because of the holidays
understood, it will probably

very

alive to

danger of

should

postpone further consideration of
the
question another month at

■.

Tele. BS 128

acts

immediately after the first of the
year

least;

WHEELOCK & CUMMINS
.

-J*'K'

Boston 10

DES MOINES

v"v/

'-"^r

y'.A

Members St. Loula Stock

Walter J. Connolly & Co., Inc.
24

St. Louis 1,Mo.

Request

a change in their policy.
■ /<\
During. the '30s the main ap¬
parent advantages of undervalua¬
tion were as followsr (1) it stimu¬
lated : exports v and corrected the.
adverse trade balance; (2) it cre¬
ated
employment by exporting
unemployment, and (3) it tended
to : safeguard the - internal' price
level against declining in" sym¬
pathy With the world-wide defla*
tionary trend.'

International

a' vote.;

■

Circular

question to the.

policy at its first meet-'
ing of the month, it would ordi-i
narily take up the issue today in-;
asmuch as2 it has announced . itwould
consider the
proposition

509 OLIVE. STREET
>

a
a

matters of

Maine RR.

Prior Preferred

the

refer

entire '£■ membership
for J
Since the Board- usually

the

change in the situation that calls

1 93 1,

was

much

accustomed

for

Ex-- therefore,;; as a 'surprise to many
that the first important act of the

the

Governors

change will decide very soon now

INVESTMENT

ion

thinking

regard

.1925

w e e n

and :

committee, though

istence will continue for long be¬

STi LOUIS

CAnal 6-8100

just come into being, does
believe that need for its ex¬

not

Teletype BS' 424

the

British.? opin¬

it has

11 i 11iIII11111131! 1111111131i i SI! 11II11111111

1931.

ficials, became

& .Co.,:

Peabody

was

During the /30s the Treasury of-;

overvalued.

of.the proponents

The Maynard

LD 11

Tele. LY 83

in rterms

plan,! Sterling
might become

by Amyas Ames of Kid¬

headed

Board

Boston

ury

or
Corporations?'' memory of
what the Committee the disadvan¬
force¬ tages suffered
the
ful replies
to certain claims in through
favor of permissive incorporation overvaluation,
which have been made by the of Sterling be-

Scott, Horner &.

STREET

Y. Telephone

which in 1925 was thinking
in terms of 1913 and until recently

the.

Bretton Woods

feels is very impressive and

Pont, Homsey Co.
MASS.

which ;give

Dan River Mills

Mason, Inc.

HANcock 8200

that,

duced

the nightmare - of British economists an<|
as a results of the rigidity of exchange

was

government; officials
parities intro¬

many nations, for: their own
lower value of their currencies!

Shearson,

informative'>booklet

Shqns

:V^.wUntiUrecently? it

Predicts

or"two seek

year

launched its

has

Co.

with the

career

•

Inquiries Invited

BOSTON

Hammill

Products

31 MILK

A; the line of least resistance;

'•-advantage will in

the' Ex¬

amendments

"Partnerships

Parker Appliance Co.

Warren Brothers Cl&te "C"

dii

and accentuate rising prices.. Sees tendency toward further international disequilibrium, and criticizes International Fund as taking

J
|

change of British policy, since it will increase British trade deficit

permissivevihcbrpo;

by Walter Maynard of

Co.

Bassett Furniture Ind.

Co. 2,:

Dwight Manufacturing

Saco Lowell

so-called

change's constitution.

Trading Markets

American Furniture

Manufacturing Co.

Purolator

^'-^y;

PAUL EINZIG

1 overvalues these currencies in relation to Sterling and will entail a

This committee which is headed
.

,-f >,,c

ration

rfllliiiiiiiiiiiiiiiMiiiiiiimiiiiiiiiiiiii

BOSTON

; :.

of the amendments.

the

Bell Teletype BA 393
New York Telephone REctor

Bates

passage

!.'v*By

j$. British foreign exchange expert holds acceptance by International
| Monetary Fund of currency parities reported by members grossly

issues involved and otherwise to be instrumental $

BALTIMORE 2

ST.,

•

proponents

Seventy-two firms affiliated with the New York Stock Exchange

•

Exchanges and other leading exchanges
CALVERT

contentions

have authorized participation by partners.on a committee which has
been! formed to fight passage of

Members New York & Baltimore Stock

let and chart

•

Preferred

€

rebut

of plan, firms V
authorize participation by partners on committee headed by Walter $
Maynard of Shearson, Hammill & Co. to publish; informative book- >

National Sash Weight

;

endeavor

Davis Coal & Coke
Monumental

O-Vi-5.

•

By EDMOUR GERMAIN

or;

■"

The "Undervalued" Sterling

|il|

Permissive Incorporation

Issues

Fight Issue of

1947

Thursday, January 2,

THE COMMERCIAL & FINANCIAL CHRONICLE

corporate
as

(Continued on page 39)

larly

w;-2Busihessvolume may decline

somewhat, but what remains will
be on a sounder basis, and prob¬
ably mbre

desirable. To industrial

purchasing
agents, -the
future
looks good—and from all indica¬
tions, they believe it'will continue
so

for

some

time to come. „*.y.,/

Commodity

,-i

Prices

v-,

'A'"

prices again are
advancing,. but
very
slightly over a month ago. Higher
^'Commodity

reported

prices

appear

from higher wages.
course,

result

largely

There are, of

instances where prices are

running wild, but industry is suc¬

divicessfully,, resisting
,2.

any.

over

month ago.

Only

one

re¬

ports a higher inventory, and only
two report a lower position. The
unbalanced condition of inventor¬
ies

still appears

the major prob¬

lem. -.Until this condition is elimi¬

nated, and
of

all

normal supply

items is available, there

little chance of arriving at a sat¬

isfactory inventory position in in¬
dustry. ' Buyers continue-to make
every

effort to reduce inventories,

especially,
A

high

dollar

conservative policy

terials
able.

seems

items.

on raw ma¬

particularly, advis¬

Mercantile and commercial

such ten¬ AAaA (Continued

on page

23)

,*•

[Volume 165

Number 4556

The Facts

;

Chief Economist, National Association of
Manufacturers

are

25%
>.1

Patrick B. McGinnis, partner of
the newly established New York
Stock Exchange firm of

Dr. Robey attacks Nathan
Report on ground: (1) he ignores and'
omit? facts which do not help his
case; (2) he deliberately makes
comparisons which do not square with actual facts; (3) he
picks V
estimates out of air and presents them as facts. Points out in
1944,
Mr. Nathan, in a book, stated
prices increase when labor costs
increase and that prices cannot be
arbitrarily held down without

disrupting competitive forces when wages are raised. Dr. Robey
concludes, if prices are reduced (as trends now indicate), everyone,
including labor, will benefit, but if prices are held down and wages

Specialize

By RALPH ROBEY*

;

New Firm io

the Nathan Report

vs.

THE COMMERCIAL &
FINANCIAL CHRONICLE

increased,

House Committee

McGinnis,

Bampton

the 'firm

Sellger,

will

positive

announced

national economic

u c

tive

without

p a n s

volume,;
without

mentators and others—immediate¬

re¬

ducing the
turn

a n

re-

after

taxes

net

wort h; to a
rate ■> below
that

1936-

39."

ness

the

Ralph W. Robey
«;

wages

(Continued

_f"

'v*

!,■

Bampton

Rusl,

v*This

•;

on page

;

34)

analysis

of Dr.

Patrick

special¬
in

reor-

B. McGinnis

the-New

York

Exchange;
C. Warren Caswell, James O'Donnell, Henry Oetjen, John G. Prellerj Hugo E. Sellger* and Mr. Mc¬
Ginnis.

Offices

Brqadxyay, iNew York.

•

does

pew

firm was

icle" of pec, 19.

Report will be 3Q, 1946 arid was the bdsis of his
the "guidepost" for CIO's
1947 remarks at a press conference in
campaign for higher wages.
; / > Washington the same date,.. The
That is the
challenge thrown by Nathan Report cpn be iouhd
in
-

-Murray team

"The

Chronicle"

Dec.

19,

Will become

Dec.

Mississippi

Port

aty

Problems

definite

Director

governments

institutions. Sees immediate/ danger in
countries of contmued inflation and outlines

ination over the Continent,
v Thus it is
imperative, the com¬
mittee continued, that the United
States lead the way to assist in

fate

the "emergence of democratic in¬
stitutions and of economies which
meet the
needs
of
the peoples

supplement to the
final study released

concerned."

/ '

rest

-on

offered

firm

long-range problems affecting

European recovery.

//The

committee

posals

Rail¬

fuel,
tiohs,

way/ Transport.
Mr. / Johnson
leaves ODT to become director of
the Port of Gulfport, Miss,

additional

•

"Know

Urged

industrial

pro¬

concerning transportation,
materials, comniunica-

controls

American

included

Atomic

the export

scientific, technical,
military "know-

and

„

how"—especially that pertaining

raw

to atomic energy.

:..

•

-■

ment

•>.

«•

gort for the wor|d food

text is

follows:

1.,The present
generation, which
has twice experienced
wartime
.' v inflation and in the
inter-war
period

disastrous

tary disturbances*.

■

/\\

Therefore, the first task
v

is to arrest the increase in
buy-

tContinuedonpage 21)

1 (i)

;

•

a considerable

i'-:?'} *'■'

' +x

•'

-i*

."pi*-

/'V *•

;

Rliodesian Selection Trust

1
,

Gaumont-British
^

•

Vn:

Scopliony, Ltd.

■

•

/,;

■■

COMMON STOCK
.

British Securities Dept.

;

Manufacturers of the Nationally Known

Goodbody & Co.
Members N. Y. Stock

extent,

the upward tendencies of
prices
is due to non-monetary
causes,

: v.

Sullivan-Waldron Products Company

The irhmedi-

Chamber submits the following
observations and suggestions. >v

:'\rr
^

1942.

Kingdom 4s, 1960-90

v'-'A'yy :"/■'V.yV-P'

April,

fjyy%j ^p*'J-y

danger in most countries is
of continued inflation.
This danger must be countered,
'With that end in view,: the

of Defense Transportation in

aware

now one

United

Mr. Johpsop came to the Office

mone-

ate

deflation,

should be only too well
•'..of the damage caused by
; r

Exchange and Other Principal Exchanges

115 BROADWAY

'p :p

]ON~: REQUEST

PROSPECTUS

NEW YORK 6, N. Y.

Telephone BArclay 7«0100

arising mainly from destruction

Teletype NY 1-672

■/; and:; ^disorganization
./.brought
•:i"- about by vthp war, such las'the

shortage
of
goods,' deficient
production and the rising 'costs

r
-

largely attributable

•

wages.

Among the

tial tasks

are an

F. H. KOLLER &
....

higher

most

essen-

increase in the

...

CO., Inc.

..Members N. Y. Security Dealers Ass'n
Xn BROADWAY, NEW YORK 6, N, Y,
.

I r

BArclay 7-0570

' 4

production of power, a general
recovery in efficiency, and firm
measures

■C?' .spiral
^ prjees,

to
.

avoid

rising

the

wages

and

"WHEN-ISSUED" SECURITIES

able, an attempt to improve the
people's
standard
of
living
merely by raising money wages

■'

(ii)

But\in

inflationary

many

countries

largely the
causes

pressure

result

monetary
in the form of
largp ac-

cumulations

of...

purchasing

ft:ft-

is; still

120

Members

Nev^ytrrtystock Exchange and

Broadway

other

Telephone REctor 2-5000

exchanges

New York

Campbell Co., Inc.

bought—sold—quoted
*

;;i;;

will tend to
imperil the
integrity of national currencies.
•

Company

*Title Guarantee & Trust Co.

tvhich
;■

*A. S.

is doomed to failure for it
will
simply lead to a rise in prices

*Arden Farms
•

It should.now be clear
*everywhere
that until suffi*
cient supplies become a.vail-

|# Hoving Corporation

.NY 1-1026

vicious

•/.

Congress also was urged to in¬
vestigate the establishments o*

well

-.How"

foundations"
recommenda¬

many

Protection

„

:•

in¬

smaller

re¬

war-time

freedom of travel, move¬
In
addition
the •
committee
;of. person^, relief organi¬
recommended that Russian diplo*f
zation,1 loans, banking,; finance,
mats and "technicians" be admit¬
VMr. Johnson's services as a staff foreign trflde, Russian economic
noq-mpn^tary as
ted to this country and to U. S.
as
member will be concluded on Dec,
monetary causes. Urges all countries adhere as soon as
organization, German, reconstruct
posoccupation areas;1 only on a strict
28. However, arrangerrfents have
sible to Bretton Woods institutions
tion, American surplus property
and to adopt stable
exchange > been made / with the Port Com¬
as well as a free
disposal, and U. S.; policies re¬ reciprocal basis. ,At present, the
exchange of goods and services.
'j °'
mission to permit Mr. Johnson to
y
5.i>; ,'rl • >•;*v*;< r
^
* *vT;
iV.v
garding relationships with monop¬ committee sai<£ there are under¬
^
y. f'The International Chamber, of
remain
in
Washington1 to assist olistic state trading systems.
Commerce has: released a /draft
stood to be more than
1,200 Rus¬
resolution adopted
Colonel Johnson until grain exby its/Committee on Monetary Relations at its
sian representatives in this coun¬
/
Russian Policies Analyzed >
meetings ,on;Nov., 27 andI38,7and<^-rr::-^
thas submitted it to the
program
as- passed the critical
After devoting considerable at¬ try compared with less than 209
stage. govern¬
/power contliiuall^ increased by
ments
and
to
the international
defici t-financing and a policy 4 Mr. - Johnson's most recent as- tention to relationships with Rus¬ Americans in the U.S.S.R.
monetary institutions concerned.
of
excessively cheap money, gigpmeht; was in connection with sia,7 thes/report contended that eco¬ ;::r (Continued on page 32)
/
The Report is a statement
on the
which»involves the monetiza- the world food
program which, as
principles of monetary policy rec3tiqn of tdebts, and; artifieielly,
a
Dmmended as most
result of the maritime
appropriate to
strike,
increases the money • valuation
had become badly
fhe present world situation. The
of capital assets.
delayed.
to international
monetary

ma¬

countries, and consist¬
ently sought to spread its dom¬

political'"stability;is neces¬
:!
/ before
international "trade

and

to the "Chronicle") —. ODT
today announced the resignation
of Mr.;: A;; S.Johnson, who has

Assistant

guidance

tions covering short-term

WASHINGTON; Dec. ;31 (Spe¬

been
:

natural

broken

European

11, the report declared that

"can

cial

'.Monetary Relation! of the International Chamber'^of
Commerce presents-...a statement of
principle? to/gpyerni^

has

occu¬

world
sary

ternal

Wm. M. Colmer

committee's

well

its

production

promises, interfered with the

fault."

Director

chinery

stripped
of

zones

sources,

of that Conti¬
nent "may be determined
by de¬

A.S, JohnsonQuits ODT

pation

offer

Issued

Committee

•_.:

Europe,/the

Assp4
ing, Philip Murray," hekd of CIO, elation
of Manufacturers oh Dec,
says: This Nathan

live

The report said that Russia has

systematically

ributing

•

will

economic unit."

Colmer CDMiss.), Chairman of the Committeen, added that unless this nation

•

its

"during the period of occupation
Germany shall be treated as an

and

William

located at 61

are

only when the Soviet
indicated

agreements especially.
Potsdam
declaration
that,

the

The report
submitted by

Stock

has

pres¬

relief."

previously ,repoi'ted fn the "Chron¬

Bobey's

Union

with
the
"reasonable

become

occu¬

zones

cooperation
will

and proper"

con-i

d i

ganization railroad securities, are
Benjamin E. Bampton, member of

Formation of the
•

nomic

U.S.S.R.

wit h

ent

States to

that

merely
pying its

issued by.the. National

was

ists

"sS**

.v-1'1
v

upon:

to what busi-

profits would be in the last

CIO

paid
Nathan ■/; $12,900, for- find¬

of business to
without •' increasing

quarter of 1946, and

which

ability

Nathan's guess

this

"fact,"

the

prices, is based solely

the

■

I to

raise

basis

tent

Postwar Economic

report calling on the United

America "can¬

began questioning this "boot¬
strap" theory. They must have
case

Eu¬

not * rest

sensed that the whole Nathan

recon¬

warned

o n

Dec.

v..

eco¬

nomic

ican public.. Those who have some
familiarity with economic factseditorial writers, columnists, com¬

ex-

struction and

,1>~

any

further

leader¬

ropean

pro-

i t y

down
inter¬

relationships.

"posi¬

ship". in

t i

dyK

assert

Condemns Russia's

resources, and lays
in restoring normal

The special bi-partisan
House Committee

Policy released

Mr. Nathan says: "... total
corporate business can support a
increase in wages
.
without any further increases in
..

reconstruction.

policy in stripping occupied zones of
eight suggested actions to be taken

suffers, except few getting raises.

everyone

Postwar Economic Policy wants U. S. to
take

leadership in European

Analysis

request

New York Hanseatic
120

Corporation

BROADWAY. NEW YORK 5, N. Y.

Telephone: BArclay 7-5660

Teletype: NY 1-583

ft* Itjifr-fVtn fWifrfW

*»u

Ifiyti fflrn X »'<* rii

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, January 2, 1947

"*Wm

A National

President, United

Automobile

By EMERSON

'V:

By WALTER P. REUTHER*

Workers,

V /

robbing them of basic freedoms,

labor-management con¬
ference to consider, among other things,
(1) breaking of bottle¬
necks preventing maximum production;
(2) voluntary system of
allocation of scarce materials; (3) means of breaking wage-price
spiral; (4) means of establishing guaranteed annual wage; (5)
provision of hospitalization and old age care; (6) a tax program to
keep full production; and (7) a joint committee to find means of

transforming technical

proposes a

Sees

Through the
that
and

profits
prices

progress.

now ^

in the coming

will arise

labor
one

the

t,
full
production,

ica to create
will

and

find

to-earth

that

without

to feed

way

clothe

putting

its teeth into the basic
our economy

vol¬

untary conference into which all

participants would

our

then it cannot

do this in

with

enter

determination

practical

America,

solutions

\. *

Here

that

If labor and management do not

out

then

are

kind

find

practical

for

super-state
now

"'Statement issued

ther, Dec. 29, 1946,

by Mr. Reu¬

of the

some

problems

conference,

breaking of

bottlenecks

preventing maximum^ pro-

eduction, because high and

channels, that
could

wages

increased

Schmidt

E. P.

Dr.
■

■

by 24% without any price effects.
claim proved to be wrong.

That

the

public is likely to look
swallowing the ver¬
sion of statistics just poured out.
The CIO, not
content with a
steady stream* of unprecedented
strikes and production
interfer¬
ences
since VJ-Day, now is en¬
gaged in a gigantic conspiracy to
grab the nation's production gains
twice before

war

(Continued

prices

page

freer

much

artificial¬

wage

rise.

rates
From

1939

to VJ-Day consumer prices
by 30% while factory hourly
wage rates rose by 58%, accord¬

ing to the Department of Labor.
The CIO, by concentrating on the
events of 1945 to date, overlooks
the fact that during the war the
rise
in wage rates was almost
twice as fast as the rise in the
cost
of
living index, 58%
as
against 30%. The CIO uses these
inflated wartime wage rates as a
of

"'Reprinted from "Business Ac¬
tion," Dec. 23, 1946, published by

base

and

that

since

struggled

show

have

balance
page 25)
into

come

(Continued

can

prices

course

VJ-Day
on

Trade Agreements Program
Believed in No Danger
By HERBERT M. BRATTER

A government

official and Congressional leader, in interviews with

correspondent, find unwarranted the growing pessimism concerning
Suspension of imminent trade

accomplishment of freer trade.
'

Announcing the formation of

§|:§

■

Railroad

Securities.

members

Teletype NY 1-931

President

Hale L.

■

ler

fair

Neb¬

tion

friends

New

have

York,

Holcombe

reported

preparing

take

and cry.
news

business

vate

Typical is the following
in

headline

newspaper

New

Dec.

the

doubt must

make

trade

26:

York

Textile

ties

issues.

three

text

The

weeks

and which

resolution

re¬

to all

sent

was

mem¬

bers of the Federal Reserve Board
in addition to Mr. Eccles, is as fol¬
lows: ■'■ ■ -:r1-;'h':
■

"The Board of Governors of the

Federal

Reserve

extension

chasing

pur¬

carrying of listed

se¬

of the Board was

action

"This

the

for

credit

curities.
v

System, in Jan¬

1946, eliminated additional

uary,

presumably taken, under the con¬
ditions then prevailing in the se¬
curities markets, to prevent the
excessive

use

purchase

the

"Conditions
the

for

credit

carrying of listed se¬

curities.

both

securities

from

prevailing

now

for

markets

unlisted

and

listed

vastly dif¬
prevailing in

are

those

January of this year..?.
"Under present

conditions, there

inadequate credit lawfully
available to provide a healthy and
is

liquid market for listed securities..
"A healthy market for listed se¬
curities profoundly affects public
reception of new issues which
provide the new capital needed
by commerce and industry.
"Without the free flow of capi¬

tal^ into commerce and industry,
there cannot be maximum produc¬

employment and

tion, maximum

rising standard of living.

ever

"The New York Stock Exchange

securities ex¬

other national

and

placed

themselves

have

changes

precautionary measures

force

against the excessive use of cred¬
such

where

still

control may

that

needed,

is, they are re¬

quiring that low priced securities
be

erroneous

the admission of

the

Jr.

Hopkinson,

•

„

cently adopted by the IBA board,

security

new

The official stated:

give the

order

distribution of

two

securi¬

facilitate

agreements
program uneasy, the writer turned
to an official closely interested in
the subject, and was reassured.

may indeed
impression that
a
wave
of opposition to the re¬
ciprocal trade agreements pro¬
gram is sweeping the country and
that the new Congress must in¬
evitably repeal the legislation or
(Continued on page 37)

pri¬

;

without

reports,

mar¬

gin trading in

Administra¬

news

"Newspaper stories of the past

and labor or¬
ganizations have joined the hue
;

which

these

listed

;

the

against

Various
Herbert M. Bratter

views

how

program.

arms

the

announce

learn

Reed

J. Francis Eckstein

will be associated with the firm

pleased to

Competition.

and

Representa¬
tive
Daniel

January 2, 1947

are

Arguments
Import Tariffs;

eign Nations' Subsidies Make Un¬

Lower

Tells Government Committee For¬

been
J.

Files

Union

Against

Sena¬

raska

Vice President .-v.Secretary-Treasurer

Frank

Workers

tor Hugh But¬
.:

Vice' President

Montgomery

Congress,

such

Lewis E. Stone

Benjamin F.'Peyser

by Senator
reflection of Con¬

Street, New Yorl$ 5, N. Y.

IIAnover 2-5268

this

attacks

the

57 William

Crawford terms

Representative

WASHINGTON, Dec. 31—In recent days and weeks a rash of
on the trade agreements program has featured the American
press. Various <$>-

yMffyyUtwMB

general investment business spe¬

cializing

Butler.

demanded of Under-Secretary Clayton

gressional "talk and talk."\

MONTGOMERY, STONE & PEYSER, INC.
To engage in a

negotiations

r e s

tions

ferent

sus-

32)

the

ernors

ent

rose

America, the

cation of pres¬

because dur¬

were

while

suppressed

were

Bankers

Association

urged modifi¬

rates. This occurred

ing the

Invest-

ment

IBA strongly

rose

V..

Board of Gov¬

Since VJ-Day, it is true, prices
more,: rapidly J than
wage

■

paid for in full.
therefore, be it resolved,

"Now

Board

the

that

Governors

Investment Bankers

the

Associa¬

tion, which represents the invest¬
ment

banking branch of the

curities

industry

se-;

all parts? of

the country, strongly recommends

MR.

MICHAEL

Federal
as a

general partner in

our

JOHN B. CARROLL & CO.

firm.

restore
ue

announce

JOSEPH McMANUS & CO.
Members

New

York

Curb

the

firm

that
name

of January

has

been

1, 1947

changed to

LEE W.

CARROLL & CO.

24 Commerce Street

necessary

tant measure to aid in
and

appropriate collateral val¬

and

early

impor¬

broadening

improving the secondary se¬
market, and thus in turn

assist

issues to

capital

the

flotation of

mum

new-

provide the much needed

industrial

for

expansion,

maximum employment and

January 1, 1947

Newark 2, N. J.

that

to listed securities at an

date

NEW YORK 6, N. Y.

System

Reserve

curities

Exchange

Chicago Stock Exchange

39 BROADWAY

of the

to the Board of Governors

HEANEY

:.\Vv

'Cy

by Edward Hopkinson, Jr.,
President of

price

again
equivalent

Conference

effective, would have to consider:
1.; The

people,
through gove

not

into

Real Wages Are Up

same

voluntarily their joint

responsibility

the

capital and
hampered by

Eccles of the Federal Reserve

in¬
translate

wage

told

were

demands

increases?

ago

United States.

An Agenda

be done anywhere

else in the world*

themselves

year

will

creases

price

the Chamber of Commerce of the

willing

souls

Now

problems.

we cannot

carry

de¬

toward

It would have to be

today.

chains.
If

posi¬

problems that plague

backs

our

take

working conference that

would get

bing them of their basic freedoms.

and

drift

our

in Amer¬

the necessities of life without rob¬

Stomachs

labor-management

This would have to be a down-

1947

free economy

check

pression.

chal¬

provide' all the people with

We must find

national

economy.

Our

wav

this

assuming

toward

tive steps to unsnarl our economy

consump¬

lenge

;■

step

in labor believe the

conference that would

m e n

P. Reuther

joint responsibility is the calling

full empoly-

full

for

management,

cannot exist without the other.

first

foundation for

tion

free

Many of

strikes X, and

lay

and

any

increases,

assurance

the

that

round

another

industrial

That

us.

out

pression,
can
avert
major

can

and do it for

would mean the end of both free

de¬

for

flow

liquidity

Board

the

what

ask

must

consumer

can

by 25% with¬

avoid

the CIO furnish to the Ameri¬

can

raised t-

management

^Walter

that

form

since war's end.

taken wages

wages

the

another wage increase, the second

over¬

and

members

its

free

In a resolution made public on
Dec. 27, which was sent to Chair¬
man

for

'•

margin restrictions.

their paid economic consultant are

can

year can

no wages.

selected statistics,; CIO labor leaders and
attempting to convince the public

use

"/ >'

Y";.

pointed out there is now no
danger of excessive use of credit.

are abnormally high.
Says profits as well
suffer from reduced dollar buying power and concludes

there would be

••

Points out statistical defects in report and denies

without profit-motive

recently adopted by

market

wages

Governors, in which

By voluntarily assuming the joint responsibility of meeting and
Solving the problems that confront our nation American labor and

another

of resolution

present business profits

have

into social

progress

Edward Hopkin¬
Jr., sends Chairman Eccles

President,

its Board of

validity of Robert Nathan's Report for CIO,
could be increased 25% without necessitating

which claimed wages

price increases.

of Federal Reserve Board copy

Chamber of Commerce of United States

Dr. Schmidt attacks

leader, asserting 1947 challenge is to find way
free economy that provides all with necessities of life without

Its
son,

SCHMIDT*

Director, Economic Research Department

CIO

Prominent labor
to

Urges Easing of
Margin Trading Curb

CIO Assertions

Conference Needed
,

IBA

Fallacies of Nathan—

Labor-Management

production."

/
'

■*

kV'"*

•;

maxi¬

^Yolume 165

Number 4556

A. J. Martin Is V.-P.

Of U. S. Trust Co.
1

Williamson

Pell,

United. States

Trust

Company of
New York, announced that, at a
meeting of the Board of Trustees,
Augustus J.
Martin

was*

.appointed a
Vice President

■

N. Y. "Herald Tribune" Increases Price of
President, in year-end proclamation,

President

THE COMMERCIAL ft FINANCIAL CHRONICLE

/ ■

but tells

erases about 20 wartime laws,
.conference action "does not end state of war, itself,"

news

and leaves

still

United States
At

"state

intact

went to

Along with action taken by various newspapers in the Nation in
increasing the prices, of their issues to meet rising costs incident to
publication, the New York "Herald Tribune", announced on Dec. 27
that beginning Dec. 30 the
price of both its weekday and Sunday

emergency" decrees before the
'

war.

Weekday and Sunday Issues

conference in the morning of Dec. 31, President editions would be raised—the former from 3 cents to 5
cents, and the
Truman announced that he would issue a
proclamation, effective at. Sunday issue from 10 cents to 15 cents. In its notice to its readers
of the higher price
noon,
declar-' f,U LU \ \:
<$>
:
schedule, the<^
ing the period ;, t1
|
" ! basis as quickly as possible." The "Herald Tribune" said:
a

press

the; bank.j

^was

wartime

formerly

vested

"an As si stant

'Vice

rately.

''
*

Either,

WORLD

Augustus

reporters that
the proclama-

W. Stewart, Jr., Assistant Secre-

tion

iaries,

remove

advanced to Assistant

were

Presidents

and

George

Auditor.

appointed

was

does

Jan Masaryk to
Address N. Y. Chamber
Jan Masaryk, Foreign Minister
■;©f Czechoslovakia and Chairman
of his

country's delegation to the
f, General
Assembly of the United
'Nations, will be the guest of honor
and speaker at the monthly meet¬
ing of the Chamber of Commerce
©f the State of New York

Jan.

Peter Grimm, President

the

Chamber, will preside at
meeting which will be held at
noon at 65 Liberty St.
!The
January.; meeting
of
the
Chamber is being held on the sec¬
ond Thursday of the month, in¬
stead
of
the
customary first
Thursday, because the latter date
Is the day after New Year's. K
the

12 o'clock

'A,

■

Vv:

>''Y

; "

•

*mM

not

the

;

1 '

state

Partner in Faroll Co.

publishing, the

recent

years.

CHICAGO,

a>rIn

Walthouse

1938, at the time of the* l&sti jprice
adjustment, newsprint cost?$48

ton; today the price is $84

WAR

II —BY

,THE

this

period

r";-

;']:;

'lL

A PROCLAMATION

i
j

tional

from

surrender

our

ene¬

of'jitself, end
j.
•
i.

/ Thereafter,; me,
together
with the other United Nations, set

believed, however,- that,
because of the President's procla¬
mation, at least 20 wartime laws
automatically ; come to an end,
and, a number of others, includ¬
ing
the
Smith-Connally
Anti-

about building a world in which

Strike

in
his

force

after

will
six

cease

months.

termination
no

the

policies

which

consistently followed,

still

ef¬

craftsmanship in the

engage

830

Union

Street

in the securities busi¬

ness.

Principals of-the firm were
previously of Weil & Company.

publication of this newspaper."

de¬

shall

aggression cal¬

to enslave the

peoples of

exists? it is at this time

sible to

THE UNDERSIGNED ANNOUNCE THE
DISSOLUTION OF
v

■■■■,!

::.:r

t;>

.y ■'

.^x:.-.

BAMPTON & RUST
iYew York Stock Exchange

pos¬

OF THIS DATE ;

declare, and I find it to
* public
interest to de-

;■;'' ^

in the

peacetime

With offices

action insures continuation of the
most skilled

Company, Inc.
Being Formed 'Si; I

fort to bring our economy and our

government back

there

Chicago

NEW ORLEANS, LA.—Weil &
Company, Inc., is being formed

will

recognize that this long-postponed

been made ,^n 1 translating
military victory into I permanent
peace.
Although a' state of war

have

that

wars

members

and

Weil &

the

have

the President; remarked
"This is entirely in keeping

mation,
with

culated

statement referring to the procla¬
that

With

spirit, through faith, with

Street,

York

;

(Continued

illiam

37)

on page

H. Pflugfelder

Adolf H. Rust

Benjamin E. Bampton

'■'pM'-U' ^t'

•

^■'

J- ''L

:.-j

■■;■>•■■

vester

P. larkin

are

pleased to

announce

that

:
'

mmi.

E. Sellger

JM V%.

Patrick B. McGinnis '

Mr. William W. Kouweniioven

december

Mr. William E. Dugan

SAN

FRANCISCO,
CALIF.-rParrish, Earl T. Parrish &
Co., chairman of the board of the
San
Francisco
Stock
Exchange,
Earl T.

Mr. Paul E. Burdett
THE UNDERSIGNED ANNOUNCE THE

Mr. Henry B. Laidlaw

i/':v'

7:X-

FORMATION OF

•••'■A;"' ,::

,/*:

ivr'i

■

has been nominated to continue in
that

office for the

ensuing year.
Frank M. Dunn, Coons, Milton &
■Co., and Arthur N. Selby, Sutro
:<& Co., both members of the board,
have

been

nominated

for

will be admitted

two-

■

The

annual

made

issue

Credit, ...Banks

Dec.

was

Charles

VM101

banks.

The

financing

New York Curb Exchange

;:'X. Montreal Curb Market
x :

dated

debentures; dated

$33,940,000

Jan.

1947, and due Oct.

1," 1947.

issue

par.

placed at

was

).Ly.

were

1- !■

yVVV;

total

;

New York State Bankers Assn.

standing

was

MASS.

;

BLOOMFIELD,n/j. Si.'. MONTREAL, QUE.

WASHINGTON, D. C.

OIL

CITY, PA

TORONTO, ONT.

yVV/^'Adolf'. H,
......

Richmond

Stock

...

R ust
.........

' ■'

j.-.

■

I'-*

will

Robertson
firm

admit

Walter

partnership in

US.WITH
61

many years.

;.\.

the

admission

BROADWAY, NEW YORK 6, N. Y.

MORGAN STANLEY & CO
FOR

Telephone DIgby 4-4933

THE PURPOSE OF TRANSACTING A
GENERAL.

BROKERAGE BUSINESS, SPECIALIZING

■ ■

[ '/... ?:

SAMUEL B. PAYNE

iVy '■- V'

Benjamin

IN:

GENERAL

PARTNERS

THE

FIRM

'■:

*Ji

y yv

E. Bampton

'
-

Effective January 1,1947

: ;

•

! ;•

•

Patrick B. McGinnis

James O'Donnell

•

yVV-VV

;

the

■'/■

^
>

December Si, 19}6

'■

2 Wall Street, New YorJc 5

^
■'

Yci'C'-

january i, 1947

Uy:'

,•

Henry Oetjen
john G. preller

;

Hugo E. Sellger
I

;;

;

^^CViVVV

C.Warren Caswell
AS

Ex¬

Jan. 2. Mr. Robertson has

•

OFFICES AT

RAILROAD BONDS & STOCKS

been associated with the firm for

V:i

changes,

FORMATION OF

Members New York Stock
Exchange

■

and

Sylvester p. Larkin

COBTELYOU L.

Stringfellow, members of the New
York

r
ir>,

out¬

Scott

McGINNIS, BAMPTON & SELLGER

To Admit Robertson
—

'y.

THE UNDERSIGNED ANNOUNCE THE

Striigfellow
VA.

•••».. •'

$286,610,000.; UyMf

•RICHMOND,

■

The

announce

Scott &

••

William H. Pflugfelder

;

january f, 1947

The pro¬

debentures

:-v.

; k; t'

used to retire $38,-

£ »,

'M-h

'*-! I
>

Investment Bankers Association

;

!||i i; 26 Broadway, New York

As of Jan. 2, 1947, the

amount

*•.

/'If
..

■•••••

U. 1,

950,000 debentures, maturing Jan.

2, 1947.,

^1S^;v\- fe;">;:3.;v...I"r

'-fM

ceeds, together with cash, in the
treasury

BROADWAY,.NEW YORK 6, N Y.
Telephone Whitehall 3-2411

Chicago Board of Trade

'ft!'

American Bankers Association

M.BOSTOM,

con¬

consoli¬

lliili-6!

.■

sisted

;

•

& Co.
|i,i:
Founded 1842 t'ji' '. '
)j;:MV MEMBERS 1;T0

\iZ?-£; New York Stock BxchanjK! fC-f.K^]YvrJ^lBot/bd&, Stock Exchange

WITH OFFICES AT

"I,

v vy

Dunn, New York, fiscal agent for
sthe

■

Special Partners

v^x.v:'■

©f debentures for the Federal In¬
termediate

■:

as a

Laidlaw

HC Banks Place'Debs.
jV-^A successful offering of

Members New York Stock Exchange

elec¬

Jan. 8.

•

.will be admitted

term,

one-year

meeting and

tion will be held

■,■■.

PFLUGFELDER & RUST

January 2, 1947.

ton, Hoffman & Goodwin has been

^nominated for

General'Partners

Mrs. Theresa N. McSweeney

terms. V. C. Walston, Wals-

•year

firm

our

Co., 208

newspapers

zation, and with the guidance of
Almighty Providence,, great gains

Act,

justice shall replace force.

New

Hoyne, Mellinger & Co., and was
with
Abbott, Proctor & Paine.

ready raised prices to those which

the world and destroy their civili¬

the

Salle

of much smaller content have al¬

will
become effective
for
Allies, through sacrifice and
'Herald Tribune.'
devotion, courage and persever¬
"We believe that readers
ance, wrung final and uncondi-;

mies.

admitted

Exchanges, on Jan. 9.
In
the past Mr. Walthouse was with

our

Stock

all other expenses have advanced

y With God's help this nation and

emergency

©f

and

South

a' ton.

payroll

ILL.—William

will

partnership in Faroll

majority of American

proclaiming ! the' end

In S. F. Stock Exch.
;

President Truman

hostilities does not,
the "state of war."

Nominated for Posts
;

(

proclaimed by President Roosevelt
prior to the war and that his ac¬
tion

•

in: similar proportion. V The great

•

Wm.Walthouse to Be

been

STATES OF AMERICA.

Martin

Fred¬

9, next.

has

by the steadily in¬

PRESIDENT OF THE UNITED

was

tJochum

cost

during

paper

During

tiamed Comp-

Vice

•

CESSATION OF HOSTLITIES OF

erick N, Goodrich and William A.
;

;

'it'.

;

schedule

new

made necessary

creasing

sepa¬

The text of President Truman's

Assist,ant Vice Pres-

;

act

can

,V-

;

proclamation follows:

bach, former-.,

troller;

}■

;

"This

.was

'•'«'■ v., ■ 'l
I Text of Proclamation
,;
(

■

meeting, Hen- (try G. Diefen-

"1 dent,

laws

the President and

Also, at the

end :to most

emergency

in both

Congress.

Presi¬

dent.

to declare

power

"Mr. Martin

"7:,

;

Thursday, January 2,1947/
Ralston Steel Car Co.

~*Z7~~w~T

lar

Dealer-Broker investment

Square, Boston 9, Mass,
-Rockwell

parties the

n'X:

N. Y.

following literature:

Manufacturing

Analysis—Steiner;
25
Broad Street,
to send interested

Circu¬

—

Lerner & CO., 10 Post Office.

•"-I

i'4

Co.—

Rouse & 'Co.
New York v4

Dr. Kuznets, in study made; for National Bureau, concludes that ;
growth of total national in&ome, and also per capita rate, have ;

Rockwell Manufacturing Co. r -f- I declined over^ past 25 years.
Attributed partly to decline in rate v
Corp.,. 120 Broadway,: New ' York. Research : item..
: Goodbody, & •v;iof growth of labor supply as represented by the gainfully occupied. 7
-JY;:
pamphlet form •—> 5, N. Y.
'l
-v: '"vX. '//■■!/{'';7 Co., 115 Broadway, New York 6
7 ;; Evidence of a
decline in the rate of growth of total
Also available is an analysis of NX Y. 7
nationajt
Wood, Gundy & Co., ■' Inc., 14
V'V-'
-L;
income and of .national income per capita in the United - States
WaU Street, New:York 5,. N. Y.
Title Guarantee <& Trust;Co,, and
V
i:
'ft-:,repo r t e.d<^ ~ „■/$,/ •/:.■<>■
t
',/>'•<>/ <1/ '
'*
a. study of A. S* Campbell Co.
Schenley Distillers Corporatior.

Canadian

;

Valuations
•

Bands

"Year-end

—

Leadership

—-

for.

Market

1947

Business

—Brochure

/Atgo Oil Corporation—Descrip¬

Outlook for 1947 —|

] in tiie Fortnightly, Market
j& Co.,

Survey

—

circular—Seligman, Lubetkin
&i Ca, Inc., 41 ©road -Street,. New

64 Broadway, New York 6,

vy:; ,.i>

Capital; Gains & Losses

York :4, N, Y,
Also available,

::./xx;

circulars

are

■

;.,v?,:

Engineering.;

The

"The

Index"-

York * Trust

New

Co.,

W. L. Douglas Shoe Co.j flartJ

ford

hawk Rubber; and Taylor.

Whart-j

V in

Memo¬

Difficulties in Airline. Financing

Investment
&

Co.,

Letter"

Beaver

"Fortnightly

;

,' ■>'"

V. E

sr'7'

Also contains data

American

u r e

e s e

This
Simon Kuznets

W////":>0/

arc

Central

'52

i Public

Utility

and, Consolidated

Gas

and

Pfd.

Surveying

•

data

j "

for

Dr.

1869; national income has

at more than 9%

and income per

riod

that of

the

((Continued

Bros., 32 Broadway, New York 4,

D. L. & Wi
of New

—

Jersey

Investment dealer decries

—

Analy¬

sis of portal-to-portal pay and its
effect

industry

Heller &

—

•

the

dum
Commentator—Di¬

gest of current ^vents

in the fi¬

nancial markets—contains

review

Watch

ifJ.

Public

apdi

so quickly as in
period of pessim- ^
:—..
"
. 7—;
,

' j /little pigs^gnd .don!t.. grow janything.
To quote from my good
friend, Andrew ,J. Higgins, "The
gloom men are now trying to. take

oveT^f//'/0-:/^/:'///
r
-

will, tell

sonal

a■

around

registered represen¬

•

'the ' index

chins

Co. and Philip Carey Manufactur¬

the

hour

*. •

.•

•:

'if

NoWj/^et's go^back to;funda¬
mentals.

They are as sure as day
following : night., They apply to

interview... The chart mak¬

and

ers

:} Edward H. Nelsop
Nelson;

Service

you

small;

of $200 will give you a per¬

sum

Walnut Street, Philadelphia 2, Pa.
Also available are memoranda pn

Northern Indiana

prosperity.

Hootnaney for

1420

Brothers,

experts appeared sud-j
denly from nowhere by the dozi
ens with' "We. told you so." Major

Corp.--4

Co.-r—Memoran¬

Buckley

—

of pessimism and asserts

era

see%a market break
grip the country—why, only•——

X Market

Street, New York 5, N. Y;

Gruen

wave

pastyeai^We h|ve

what not to do, and for the

Co., 30 Pine Street, New

Street

Wall

37 Wall

vfi)'

SPANIER||;.l

knowledge haye events changed

our

the: good Lord knows. |

Memorandum—J. G. White .& Co.j

Stanley

York 5, N. Y.

Never to
ism

( Federal Water & Gas
Portal-to-Portal Pay

;

RrI

Analysis :—iBj

New York

r( 1-;

Bennett, Spanier & Co., Inc., Chicago

pizzini fc Co-^S Broad Street,

—

Hy WM. A:

7'i77.X;-77X!

■

1947 will usher in

Lackawanna

*7'-7 H!\\

■AVJ
■/./>< ij:/

lenge to the barrage of pessimis¬ Salle Street, Chicago 4, 111.
tic
statements—bulletin with a,
list of suggested stocks for income
,and capital, appreciation—Strauss

.■if!

Company^—circiif
Co., 231 South La

38) "

on page
?

Collins Radio
lar—Adams

ight-+old: population and income

;'r,

Guide to the Perplexed—a chal¬

last, 1929-38,

continuation

CHICAGO, ILL.-—Cruttenden &
As Foreign. Ppwejr; Missouri;,: Kan¬ study and
analysis Jn brochure
La-Salle Street;
form—Fred W. 7 Fairman | & Co^ Qd.i1
sas & Texas' 1st 4s1 of' 1990;'Vir¬
member W1 the New "York Stock
ginia-Carolina Chemical;!' and a 208 South La Salle Street, Chi¬
list of High Grade Utility Bonds cago. 4, 111.
;
1r Exchange, announce the assbeia-f
firm
Edward ft
M F'
legal in New York State. /}■■•<■/

% T
,*

capita, at- 8.5%,
From, .the first " " ,;
th^ report, .decade, 1869-78, of the 60-year pq^ 7 ;7 ;

Findings,"'

that

;

1869-1938j

Kuznets sgys in
"National Income^ "A Summary pi
.

at the rate of almost 19%

grown

past trends would, mean a decline
in the irate of growth of national

Comprehensive

—

,7,Since

and vanalysi^of:
tignal. .income. b,y -the',National
'«

before World

years

War

in¬

vestigation
Bureau.

population gre.wYapi^&.

during the 60

summarizes 25

Cruttenden&Co.

5%$

Electric

'''

and

.come

r e p o r

yearsv

indusiriSjiza-'.

Accompanying the

X V

Rapid Growth in National Income

thb

c onpra

siz¬

b |

7 p u

re"|

Edward Nelson With

New

Street,

v York 4,

•

(;C;>

Hentz

—

cently

'. lished

would be-moderate

depending upon- ,how one
interprets the» long run signifi-; 7,7
cance
of the
1929.-32 depression > 7,r>
and
the
.incomplete v recovery
from it.
I
^/x

monoV

graph just

ucts; Upson, Corp-; Alabama Mills;
.Vtica,& Mohavvk Cotton Mills,
Djebold, Inc.; • •'.vt ■
:,p/'-//MX'X
Inc.— Circular — Mohawk Val¬
Boston
&
Maine Railroad —
ley Investing'. Co., < Inc., 238 Gen-f
Circular.
Walter J. Connolly fy
esee/ S.tre.et, ..Utiqa 2, N. Y-.
Co., 24 Federal Street, Boston.©),
Mass.

—Memorandum

tics,

University of
'.Pennsylvania,

Go.—^Bul^j

t is

VN at ion

Clpbagor3, 111. J

Iron # .Steel; Purolator Prodi

letin—Doyle, * O'Connor & - Co.j
Inc., 135 South La i Salle Street,

Mo-j

Empire; Lanova Corp.;

latter

able,

Q. A. Sakton: & Co; |
Pine. Street, New York

CO., 120 Broadway. •5,-N^Y
New York 5, N. Y.;
•• j
:
Also available.are memoranda ■>. United- Bricks

100

X; Issue also' contains a study of
.Mineral Resources .of the United
States.
\r, • i ,-i. rX
7.vv ^XXXX

Stoker Co,-

:, S i

rn'oni-inqome and probably also of naK .u z n e t s.,; tiohai income per capita. The de-»v
Professor •'•of clirie in''the rate of growth of the
.

.* S t

1, Economics and

Ward

—

Broadway, New York 5, N. Y.".

V>:rfl^ J-

Standard

Inc.,

Chemical Industry — Analysis
of production and growth in the
issue

Avenue, -New York

'-x X \)

•

randum

Street, New York 5, N. Yl

current

Fifth

49 Wall

Merit, in care o
Distillers Corporatior

cerpt frgm internal revenue buli
letih No. 25 r~ .Vilas &' .Hickeyj
,

they haw;

Mark

Schenley,

Tennessee Products and Wellman

Ex-t

articles

running in the- Chronicle-

write

350

been

tive

and

EX F. Huiton

■;n-

Candidates

sit

readers

with ( their

living

—

vfeligion

your

—

and your

.scraping .the floor, 'drawing mplihod of (jlpi,ng. business^.

tative, specializing: .in securities of fine lines and playing with tinker
On Nov, 5 of this year, it looked
industry. ^Mr. Nel-. toys.' All of a spdden radio com¬
as
though the American.peopljp
was
formerly; eastern Sales- mentators have become market
decided to go back to fundament^ ?:
Allen B. du Mont Laboratories
Hydraulic Press Manufacturing Manager of the Caswell-RunyarL experts.;
Some guy .with lopg als. In
and Magna vox
my opinion, we in; the in-f
Company, etc.—
Division of International Detrola. hair and *a
fancy name will ap¬ vestment business haven't done
7
Bennett, Spanier & Co., 105 South &.
Co., 231 South La Salle Street; Corporation.; :"
pear as a greaf economist and I'll
our
share to dispel the wave of ■. v
La Salle Street, Chicago 3, 111.~
Chicago 4, 111.
bet my last year's overcoat these
Also available are analyses of.
theorists never earned a dollar the
With MerriULynch Staff
le
country about 30 days ago,
Bell
Lumber
hard way in their life, ran a busi¬
Co.,
si(Special to The FiNANCiAf -Chf.onxci.e) j
,/ Arden Farms Company ~ Anal¬ Long
but which since is commencing to
ysis
—
N,bw
York
Hanseati? Miller Manufacturing Co. /'/
H INDIANAPOLJS,, IND.—Albert ness or had to meet a payroll. evaporate into .thin air. About
This reminds me of the spinster
E„ Gordon is now connected with;
two weeks ago, we noted figures »
social worker who tells the moth¬
New
that the national income for 1946 7
England ^Public
Servipe Merrill Lynch, Pierce, Fenner &
er Of
eight healthy kids how to would be about
:Co. — Analysis
V V^
Ira Haupt & Beane, Circle.Towex.
$163 billion. Does
CARTER H. CORBREY & CO.
7;
have and raise children.These
this signify depression—or even a
Co.. Ill Broadway, New York 6,
Member,.. National Association
experts advise you to sR on the mild recession?
7
of Securities Dealers ■;
N.
The answer in,
'/
/'/
X
U
Joins Herrick, Waddell
-r
side lines and do nothing, and our
language is NO. v -.
.
f j
•(.(
(Spefcial to Thb Financial Chronicle
before you know it you are pay¬
Wholesale Distributors
The laboring, men in the coun:
Public National Bank & Trust
j
KANSAS CITY, .MO.-Roy. J. ing out your hard earned dollars
Middle West
Pacific Coast
Co.—Analysis—C.
E.
Unterberg
for their tout- sheets.
The next
the same as the people 'got rid
& Co., 61
For
Broadway, New York 6, Herrick, Waddell & Co., Inc., 1012 thing you know you will,be buy¬
of the crack pots oh Nov. 5. W,e
N. v;^- v*:^
Baltimore Avenue.
X: *'"*
ing, a dream book—and then to predict
UNDERWRITERS
that
management
and
the poor house, ft XX * X• 'X
X - v: labor -will work more
smoothly in
of

VThermo-Namfel,
Portsmouth
Steel, Textiles Inc., Palace Corp.,

ing Co.

!the furniture

:\r///r,/"/

son

Sessimism which started to grip

—

SECONDARY

MARKET

DISTRIBUTION

CHICAGO 3
State 6502
C6 99
.

ering that we had the New Deal

LOS ANGELES 14

135 S. La Salle St

;

\^e

pleased to

are

650S.SprmgSt

V
••

•

Michigan 4181
LA 255 ';.

strange .consid.-? 1947

All this is; not

announce

the installation of" a

than they have for a good
and our reason for

many years,

this is—FUNDAMENTALS.

"
ton for the,, past

14 years
their do-noth'ing and get overtime

DIRECT PRIVATE WIRE
^'V7?77VV:.

our

for it—a quart of milk for
every child in the world—kill trie

%:/ -:S\■'/ / to

greatest

era

of prosperity

this country has ever known.

WARD & CO.
;

*Well#-Gardner & Co., Com.
Snap-Ou Tools Corp., • Com.

r,-''120

(

,77

Broadway

/ '■/

NEW YORK CITY

♦Seismograph Service Corp.,Com.
^Prospectus Available

FRED W. FAIRMAN & CO

Request.

1916

Members .Principal Stock
Exchanges
Chicago Board of Trade

10 So. La Salle St., Chicago 3
Tel. Franklin 8622
Teletype CG 40S
Indianapolis, Ind.
Rockford, 111.
t'.
•
Cleveland, Ohio

CHICAGO
'

•

•;

•>.!?

-H
r'

-I
-

4, ILLINOIS

•»'!»;»

...
••

':F>M

DEEP ROCK OIL CORP. Common

INTERSTATE BAKERIES

jCORP. Common & Prtferred

NORTHERN STATES POWER CO. 6%

& 7% Preferreds

"»i;

f.t'I.

;( .A

t!. M i

' j
f

'!.('• XMh

Members
Incorporated

Chicago Sock] Exchange' U

,V ''

•

208 So. La Salle Street

5aal H.Davis & Co.
Established

We Maintain Active Markets in

;

♦Jessop Steel Pfd.

Tel.

Randolph

/;,« j Chicago. Bohrd of Trade

;

135 So. La Salle Street^ Chicago 3 X;

Telephone

New

York

State 18711

7..

Philadelphia

opinion that 1947 will /usher

the

pay;

"..

It is

Pittsburgh

;

rc-'aX-i'Teletype CG. 27,3;,7

;

Minneapolis X

Volume

Number 4556

165

THE COMMERCIAL. & FINANCIAL CHRONICLE-

Britain Bases Peace

Policy

World Bank Dutlook

Congressional Dissatisfaction j

By ERNEST KEVIN*

;

British Secretary of State for Foreign Affairs

^Representative Crawford of House Banking and Currency Committee calls for
meeting of Big Powers to eliminate the "bugs" so that
institution can get underway.
Chairman Spence indicates assent to

•;

I; reviewing articles of'agreement.
I. 'insisting that

ishfuture

relationship with *>wprld is on basis of an effective }
/United Nations/ ; Says war has left Ureal ^^ers; predominant |
and peace depends on harmony between them.
Sees different,
t'economic systems no barrier and cities Britain's efforts at pacification in parts of world 'not affected by pending peace treaties.
Denies Britain is tied to policy against Russia but sees cooperation

WASHINGTON, D. C'., Dec. 31

Commenting Dec. 30

First of

all, allow

extend,to

York
;to
a

time

connection

Bretton

the

broken.

declared, -all the machinery of
relations,' which is
the result of years of effort, is

But

ized

®ve r y o

Ernest

,since the close
rof the

war

Bevin

to the future

the grip of the war

destiny of our own
Country ^arid the Commonwealth
and Empire and the general peace
situation.

perfect rhythm when at one blow
the -essential parts are destroyed,,
and
the
whole
process
which
keeps the world in even; motion
goes.
And another-force takes
hold.
*The-whole world gets -in

anx¬

felt

much like seeing

very

machine /working,/ with; its

fine

rea'
ia¥-

the

ieties

we r e

mer

The many Conferences and fail¬
ure to reach finality must, I know,

Bevin

•

(Continued

over

,<iu

T' '

•

■

•'

!» -'-.V

"/\

$m.- •/

dom,

a ^'progressive"

education,

more v

knowledge and

produces extremes of the "business cycle," Advo¬

3/C

cates botib domestic and international economic

planningarid

urges

government, labor and business act together through President's
Economic

Advisory Council, Scores 4<Russia^haters,,,

the

^'conserva¬

unity of progressive factions, but wants "this to be

expressed
a

genuine

two-parly country."

b y

this decision.- Take

Brazil, China,
Domini¬

•

depositor

•

•»»»-.-

can

I am glad to attend this meeting of independent-citizens who be¬
lieve in progressive political .action. You have invested your time
.

;:sive

Democrats

progres-f

many

The

last Fall,

fundamental

progressive

*and most of you knew in advance

faith is

"that yoU%ould fail. But you went

not allow ourselves to be

throu gh 'with

the fights because

>we had to keep the

progressive

any

minor issues.

should

diyid

The

ton

faith

goal of

belief

in the

and

world; Those who'

"Progressive Citiazeris of America," at the Hotel
'Commodore, New York City, Dec.

Russia first

and

9. 1946.

■

actions

in all
do

/Continued -

see

peace,

one

put- hatred of

believe

page

31)

values -of their,

ies.

Devine &

indstrialist

Co., Inc., 135 South La

Salle Street.

'■: ^■

Active Trading Markets in

Central Illinois:
Electric & Gas Co.
'

Common Stock
vr'f

small, or a
savings
bank;

>■*.

v '

1 /»

utility

operating

adding to
of

cur¬

32'/a

annual

its

company

properties.

cents

quarterly

Dividends
provide

yield of about 5%

markets,

now

at present

words

mean?

these objectives is the

Technicians of vFiCurrency, everybody
has been studying the Brettori Woods Agreement and its deand

"To promote

ity, ; to
change
titive

*A speech by Mr. Gutt, broad¬
over the British
Broadcasting

cast

The

Request

ADAMS <r CO.
,231

> '

SOUTH

SALLE STREET

CHICAGO 4, ILLINOIS

TELETYPE CO 361

PHpNE STATE 0101

following:

exchange stabil¬

maintain

orderly

arrangements

members, and to avoid

Corporation, Dec, 19, 1946.

Circular

the

was set up,
assigned specific ob¬
jectives to it. The most direct of

•-

these

words,

The Bretton Woods
Agreement,
on the strength of which the Fund

mists,

previously Man¬
Municipal Bond De¬

was

of the

CHICAGO, ILL. — Robert U
Meyers has joined the staff of C. J.

are

significance of
the action taken by .the Inter¬
national Monetary Fuftd.

their feelings

not
on

.as

freedom

plain

re¬

Small

.like to explain, in very simple and

Gutt

gard to Indo-China witfi a viewto postponing the date for the fix¬

City, £o
in the securities business.

With C. J. Devine & Co.

It is to these people that I would
Camille

dies,/! and

par

offices

/./ .(Special to The Financial Ckf.onicle)

they have heard of Bret¬

Woods

forming ' John

regard/ to

ing of the

with

them.

the Dutch In-

France in

Co.

;

not, whether they
know about the Fund or
not, ex¬
change stability means a lot to

essence

prospetityi
*A' speech by Mr. Wallace at

that

broad

of the progressive

"torch burning. Battles have been

'Convention

whether

slav i a/ft h e

/campaign;. You have shared in
is, with us, not
a
matter
of
/tnany'Victoriesfor goodgovern-' political
expediency but of pro¬
inent. you failed in some of the found American conviction.

flights whicftyoix put

Republic,
Greece/Po¬
land, Yugo¬

lost, but there is a war to win/ Netherlands
To keep progressive faith :alive
in

hard

tradesman, big

Small
&

partment for Gruntal & Co.

cur-

interested, directly or indirectly,
consciously or unconsciously, in

M W *-,f

with the Research

was

Street,* New York

ager

other people in the world who

the wishes

the

sand money to try to elect

Mr.

disrup&d

has

acquiesced
in

tive, high tariff Democratic party" and "lukewarm liberals." >^ Advo¬
cates

Fund

Intel¬

Department of J. S. Bache & Co.

By a decision taken today, the International*
Monetary Fund has
expresse<Lits agreepient with respect to the currency par vaitoes
proposed
-by
thirty member
velopments, know the meaning.
countries.
At
For them,' no explanation is nec¬
the same time,
essary. But there are a great many

-restraint/' bat asserts Vwe do not believe in-excess .of anarchic
freedom which

Goldsmith

engage

conditions in world economic affairs
prevents defintely fixing parities, and argues
submissionparities
f now affords opportunity for Fund to advise and help nations, stabil¬
ize their
currencies, since Fund requires members consult with it
when effecting changes in
par value of their currencies.

decent self¬

Director of the

was

ligence Branch of the headquar¬
ters at the United Kingdom base.
Prior to entering the
Army, Mr.

Wall

By CAMILLE GUTT+

Rointsv out "^presehf

Aeronca Aircraft Corp.

ex¬

amongst

Baltimore Transit Co. Pfd.

compe¬

Burgess Battery Co. Com.

exchange depreciation."

given to the Fund
(Continued on page 33)
means

Chgo. Auro. & Elgin Ry. Units
Howard
*

Industries, Inc.

Hydraulic Press Mfg. Co.

Old Ben Coal Corporation

Memorandum

Sent

HALLICRAFTERS

Num-BusH Shoe Company
COMMON STOCK

Long-Bell Lumber Ccmpany
♦

FEDERAL WATER & GAS

'!lpgS|g|iic

Miller

Manufacturing Co.

Oil Exploration Co. Com.

UNITED BRICK & TILE

/ Seven-Up Texas Corp.

Request

PORTLAND ELECTRIC

Trailmobile

POWER PRIOR PFD.

]
J

Company

Li
*

DOYLE, O'CONNOR & CO.
I

Members

Chicago Stock Exchange

225 EAST MASON ST.

^ PHONES—Daly 5392 Chicago: State 0933

a;/.<

INCORPORATED

.-V^-"

MILWAUKEE (2)

Teletype MI 488

John Sinall Is Forming
Own Inv. Firm in N. Y.

Managing Director, International Monetary Fund

? >

policy, Mr„ Wallace stresses - Wore, free¬

smith

Small

Internatioual Fund executive maintains general acceptance of

imi

Exchange,

of Jan.-1, 1947.
During his military 'service -overseas, Mr; Gold¬

J rency parities ajir submitted by. pmmber nations at this time does
| not necessarily^ |ndicate these parities will be finally approved.

Editor, "The New Republic"

/Outlining

35)

Currency Parities

By HENRY A. WALLACE*

Sill

F. L. Crawford

John

30)

page

the New York Stock

The International Fund and

are

second situation

Unity for Progress

if'''']

(Continued

Jacques Coe, 39 Broad¬
New York City, membei's of

way,

on page

in the

years

the firm of

•

people is turned to destruction.
And the more successful you/are

Corporation^ Dec.-22,1946;

Having served four

•

pre¬

Intelligence Service of the Armed
Forces, Henry Goldsmith will join

"But it is now apparent that there are
'(mgs'/in the shiny new
machine which must he eliminated
by the 'only ones who have the^
p4wer. to do so—those who created it/ This may require a
calling
together of -the powers so that they may consider .the defects of the

lory, that the whole mind of the
broadcast by Mr.
British Broadcasting

been

demands, in order to achieve vie-'

.*An address

was

Kenry Goldsmith Joins

change of-a com¬
ma in the Bretton Woods
agreements would require another inter¬
national conference and that the articles of a
greemeni; were- beyond
1

asso¬

;

Staff of Jacques Goe;

become

firm.

criticism.

have

the

Formation of the firm

intact, partly because if was then
seeking internationalcooperaon all fronts and partly be-?/
cause, the Administration insisted

Rep. iBrent Spence,

Bums

viously reported in the "Financial
Chronicle" of Dec. 19.
/

machine.' The

instance, foreign relations

constructive, the

has

ert

fion

difference between "the two s'it-uations -is that while in' the for¬

to
se¬

ciated with

that even the

Exchange,

curities, with offices at 61 Broad¬
Frank /L.

.drafted at

Woods. / This

Stock

and Rob¬

apparent to many of us all along,;
but Congress passed the program

international

Adolf

way/New York City.

approv¬

.*<

Opens

Pflugfelder,

H. Rust hnd Sylvester P.
Larkiu,
formerly partners of Pflugfelder,
Bampton & ; Rust, announce the:
formation of the firm of Pflug¬
felder & Rust, .members of the»

the Bretton

before

of. the World Bank

•is

finishe

.obviously
some¬
thing wrong with the blueprint

You^ must

<not

;

"There/its

Df peacemak¬
ing, - but un¬
fortunately
ences

program

| Hall, Danforth Cardozo

by a

it,

this writer:

I had hoped to be back

•with this task

confer¬

seen

Representative Fred L.¬
Crawford (R., Mich.) stated to'

essential to try to make- clear as
briefly as I can some of the prob¬
lems which have, had to be; faced.«

Parliament

Woods

ing

have/caused -you many anxious
moments,
Therefore, I think it

have given
full report

the status of the World Bank

•lengthy hearings

William

New. York

"Chronicle'^--^

the

member
of : the
House
Banking and Currency
Committee which last year held

warmest greetings for

you my

high-ranking

.Christmas and best wishes for the "New Year.
i r-o m-.-N e w "

(Special

NYSE Firm

deal as brokers in investment

;

Clayton and other Americans

President be from -United States.

new

4^ In radio broadcast, 'Britain's Foreign Secretary states his /nation's •
position iaefforts toward universal international peace. SaysrBrit- j

with all.

Pflugfelder & Rust

Causing

Detailed analysis available on request.

comstook & co.
CHICAGO 4

135 SOUTH LA SALLE STREET

3. ILI4NOIS
Telephone: Dearborn

6161

231

Teletype: CG 1200

So. La Salle St.

Dearborn

Teletype CG 955

1501
;

THE COMMERCIAL &

Recent Stock Decline

Gruen Watch Co.

No. Indiana. Public Service

Memos

York,

New,

Investment banker ascribes recent stock market decline to lack of
new issues, and loose talk of depression,
together with labor unions' wage demands. Sees recovery: ahead
with stock'market highs in 1947 above 1946.
1
1

margin trading, undigested

Los

and

Philadelphia

Angeles Stock'Exchanges
Also Member o/
York Curb Exchange

the following:

Los Angeles
Hagerstown, Md.
Telephone—WHitehall 3-7253

New York

Pittsburgh, Pa.
N. Y.

Philadelphia, New York and Los

has

been

thin.
\
2. Undigested new issues of securities and the
poor timing by underwriters as to their offering
and pricing.
/:/'■:..
; :
i
3. Continual talk of depression by certain

Angeles

government officials and uninformed radio and
newspaper, commentators which * created
doubt
and fear, touched off the spark that caused the
liquidation of securities and started a market
break of over 25% ; in values. No basis for such

Philadelphia

Bank & Insurance

predictions exists as there remains a Hugh demand
for goods and products of all kinds;-this condi¬
tion should continue for some time.
•

Stocks ;/////

Philadelphia %

future.

American-La France-Foamite

stimulants to business
jactivity. Farm income is the high¬
est in our history. / ;
v.;!} •«/
Tax reductions in the past have
ppwerful

fire

complete

.protect^^^

tfp'i, Available . jit.
discount' i t
Tof
approximately
:/.ii
from net current Assets.,
■'

high—19
date—.,^9

r*Low' to

Always had

•

/■;■'/

,PH 30.

.UPrivate Phone to N. Y, C.

poifrtrfleMJ

COrtiandt 7-1202

..v.

;Vvty-.'"W.

<•

■

Rollins

Sons

proposed

The

in capitalization pro¬
this Plan had been

for

the/distributions

accordance

submitted to

allocations

and

proposed'.therein

had

not / been /

approved by the
public security holders. In fact,
no
hearings were ever'held on
the

nor,

Plan, and''it-'soon came to be
as i /inappropriate
and

possible

subordination

grounds

for

limitation

Company

Philadelphia

claims,

be extended to include all un¬
"the

Trustee

said

that

accord

shall

;

sents

the

nature

trict

document of its

only

Court.

pro*//

above

period not to exceed five

months during which "revisions
and amendmends" may be

Commission and to any under¬

It is quite possible,

lying

and its creditors
stockholders who may de¬

and

company

sire,/ an opportunity to suggest
or indicate to him, in. writing,
any. particular matter' or mat;' ters which it is desired to have

investigated/'

Dis¬

the /court

Thus

order; referred
vides

in the

file

now

to the Securities and Exchange
•

wns. announced

Decker will assume

companies/ and

derlying

Manager of the

impracticable.; . j
>, ■ 4" • ■. /' ■ '•; ■;>
/ : Nevertheless/this Plan repre¬

3. The

f able/ that

filed./
prob-

even

entirely new plan

/may be written;
/

•

:;//;//;/■■ /' Enter the SEC

•

'^11

: ^

hearing was held before thd
Securities and Exchange Commit
sion in Philadelphia on Dec. 21
A

rule amending
(c) under the Public
and every effort1 made to con¬ Utility Holding Company Act of
clude same not later than Jan. 1935. At this hearing, the SEC
31,. 1947; and within 30 days signified a direct interest in the
after the
conclusion, W. D. Pittsburgh Raily/ays Co. reorgan¬
Halsey, Stuart &. Co.; and later
that1 year was transferred to the | tGeorge/Trustee^/s|iall; fjlq hjs ization. The adoption of the pro>~
report thenebn. / ' 1
\ ♦' 4 < / posed rule will enable the SEC tb
Philadelphia branch. He became
intervene in the proceedings to
Assistant Manager here in 1932, 4. The said
Trustee shall prepare the extent of
approving, disap¬
and remained in that position un¬
and file .as soon as reasonably
practicable, but»not later than proving, amending/revising, veto¬
til he was called to active duty
ing or even re-writing any exist¬
/ five months from the date of
as an officer in .the U. S. .Naval
reorganization
this Order (Dec. 13, 1946), such ing ~ nr' proposed
&
Reserve in 1942. j ;
plan. Public holders of securities

Inc., 40

Wall Street, New York City, an¬
nounce

Re¬

approved
by the
Pennsylvania
Public Utility Commission,
but

/of

ence

; /:

■

JTreding Markets

•,

!E.

regarded

rectors.

Grasse With E. H. Rollins
•

■

Court

Plan

That the order of Nov. 7, 1945,

by.' W.
Logan rMacCoyt, President, follow¬
ing ; the1
of tHfe[ Board of Di¬

1947.

jfcourt,
2.

Mr,

legislation and income tax cuts
his new duties1 Jan/ 2., After his
by the new Congress, the. highs of
graduation from Carleton College,
the 1946 stock market could not
Northfield, Minn., in 1926, Mr.
only be equaled but surpassed in Decker joined the Chicago staff of

Philadelphia 3

PEnnypacker 5-8200

decidedly stim¬

effect on business, fol¬
lowed by higher security prices.
With the
help of proper labor

Decker,

vided

with the decision of the Circuit

ment of the Provident Trust Com-

ulating

BOENNING & CO.
1606 Walnut St.,

a very

in,

proceed

District

Revised

scale-down

investigation
and examination into the exist-

Philadelphia
office
of
Halsey,
Stuart ,& Co., Inc., since his re¬
lease from the Navy last year, has
been
appointed* Assistant VicePresident in the Banking Depart¬

ment, record savings, ample credit
and the end of controls; these are

leadership in

century of

forth

the

organization."

been ordered:

now

"Amended

That the reorganization hence-

Of Provhleet Trust
R.

filed

Remanded to the District

Court, it has

en- -n

deavoyedsdo write a Plan of Re¬
organization. In March, 1942, they

assume

case.

in¬

Acting under
Trustees

providing for

Decker New Officer

1947 /will, no doubt, have
uncertainties but also ex¬
ceptional
opportunities.
Large
pent-up demands still exist here
and abroad. There is full employ¬
one;

WHitehall 4-2400

many

Over

the

have had in the $>—-

structions,^ the

jurisdiction over
the properties of the underlying
companies for the purpose of ef¬
fecting a system-wide reorganiza¬
tion. This opinion was sustained
on
Oct. 14, last, when the U. S.
Supreme Court refused to review

•

past three months is a temporary

HAnover 2-2280-

PH 257

Teletype

The decline

confusion and uncertainty/; This
satisfactorily adjusted in the

general

situation should be
near

New York Phones

Phila.. phone

the

H. N; NASH & CO.
Locust 7-1477

should

y; 4. The stand taken by most labor unions in
the constant demand for increased pay has added

Charles A. Taggart'

;1421 Chestnut Street,

ruptcy/-court.

S." Circuit

Court of Appeals, last May,- ruled
that the District Court could and

'••

Philadelphia Transportation Co.
■•// 3-6s 2039, Pfd. & Common

Upon appeal, the U.

very

•

••

■■

between

Wire System

Private

—■

;/// The recent stock market decline, in my opinion, was caused by
LegaRy^ a jgreat/de^L ofi idense tion system,/ including some 53
'
*
,.
- < 5
fias already been underlie^ fias been operated by
1. Lack of margin trading which prevented the purchase .of secur- undergrowth
Trustees appointed by the bank- /
; /
'
V ities on a scale down. On a cash basis, the market cleared/a Way.'

Wailnut Street, Philadelphia 2 /

1420

;

matter of months/,

Neuf

Pittsburgh Railways

As indicated by an order issued by the U. S. District Court for
Western Pennsylvania Dec. 13, a specific "time-table" covering pro¬
cedural steps to be undertaken in the reorganization of the Pittsburgh /
Railways Co. system has been published. Should it be possible to
adhere'reasonably to the schedule as set forth, it would appear that /
major problems iri this involved reorganization ihay be resolved in a /
;

BUCKLEY BROTHERS
Members>

The Time-Table for

Philadelphia

Charles A. Taggart & Co.,

Request

Pennsylvania Brevities |i|ll

Temporary

By CHARLES A. TAGGART

Philip Carey Mfg. Co.

;

FINANCIAL CHRONICLE

that Arnold Grasse has be¬

above

investigation and
examination shall be expedited

upon

proposed

Rule .U-49

come

associated with the firm.

amendments^to the "1942 Plan"

Empire

aj:e; necessary; to reflect >the
fcinctiit?;- doUrl/S decision i and

who have gon^ without
senior and underlying

income on
issues for

more than eight years are gener¬
' Other
"changes
as
the
Trustee lnay deem advisable, ;/ ally pleased/to see the SEC 'intervene.
They feel that the gov¬
5/ Upon filing of the'Trustee's reernment body will see to it that
port in respect to possible sub- the
"public interest"—in this case,
S ordination of Philadelphia Com¬ the
rights of the minority secur¬
pany claims, the District Court
ity holders—will be safeguarded.

iuch

Availably Publications

Philadelphia

Members

Stock Exchange

2-4552
System Teletype PH 220

Bell

CERTIFICATES

will

Valuation and

Appraisal

";;'Aihericaii Box Board '
Botany Worsted Mills
Empire Southern Gas

Empire

i •\

Warner

) (

Byilesby & Company

PHILADELPHIA

Roberts ;||
*

Pittsburgh

Lancaster'

Scrahton

Pub. Serv.

Williamsport

Co.

Offered only by prospectus

1528 Walnut St.,
New

York

Municipal Bonds
■

Philadelphia 2

Boston

Chicago

San Francisco

order

should

not

entered

directing that Philadel¬
Company
liquidate and

phia

dissolve

—

unless it shall elect

to divest itself of all its electric

properties and to continue in
business only as a gas utility
company.

■

analysis alleges the exist¬

of many "undue and unnec¬

1959

Pennsylvania
and New

•

Pfd.

Jersey

Municipal Bonds

3-6s 2039

Dolphin & Co.
'

why

Phila. & Western RR. 5s 1976

E. H. Rollins & Sons
PEnnypacker 5-0100

Phila. Transportation

Bought—Sold—Quoted

will be required to show cause

Cambridg^BId?,-^ 1953

Market St. Nat Bldg. 5s

at which Philadelphia Company

Alden Parkland 3s 1954

A. Webster Dougherty

change Commission sets Jan. 21,
1947, as the date for a hearing

ence

' V

Rittenhouse

' i

' ]

6-2580'

't..

I':

Samuel K.

If".:!

142il Chestnut Street

fwV

PHILADELPHIA 2

Members

i!'
1

Bowling Green 9-8184

•

u.;-;

.
.

-#1*.

28-page release, dated
the Securities and Ex¬

Coach' I Co.,

Commoh

Incorporated

(

(■:

Phillips & Co.
Stock

Philadelphia

Packard Bldg.,

Teletype
PH 375

Fidelity

N. Y. Phone
COrtiandt

7-68141

Philadelphia

Trust

Buildini

PHILADELPHIA 9

Exchange

Philadelphia 2

■

subsidiary,

Com.s

Mander Common

Pittsburgh Railways Co. and its essary complexities" in the cor¬
Pittsburgh Motor porate structure of
Philadelphia
entered bankruptcy
Company. Among those specified
proceedings in May, 1938. Since
(Continued on page 33) v ;
that time, the unified transporta¬

REctor 2-6528-29

Elec. Co. Common

ind.

Harshaw Chem. Co.
*

Allentown,

referred

The "1942 Plan"

://NEW YORK 5, N. Y.

PA.

PEnnypacker 5-7330/

Stock Exchange Bldg. Phila. 2
Telephone
i 1
'»f
1 Teletype
RIttenhouse 6-3717
^
,'.PH 73 1

Phila.

The

BROADWAY

120

been

;■■•••

■/

George,
Trustee,
is
ordered to cause this Order to
be printed and copies mailed to
air parties at interest, including
intervenors, the'Securities and
Exchange Commission and the
Secretary of the Treasury.. /;;

STREET

'•

Philadelphia Co. To Dissolve?
6,

7. W. 1 D.

Incorporated
123 SO. BROAD

him, other than claims filed by
Philadelphia Company and sub<
»
/////■'/■ /1/
•;./ / sidiaries. j

#
:

Dec.

PHILADELPHIA OFFICE

*Nor.

Request/

order

Special Master is directed

-•/heretofore

' .* '■

Company

Wawaset Sec. Co.

H. M.

i 1<i

Truck

Sterling ^dotor

;

Copies

/■;. v/'v

Pittsburgh Railways Co.

•'

ten t I /

Steel

further

LEGAL BONDS

PENNSYLVANIA

such

appear

proceed promptly with hearings
on
claims which have

6. The

CITY OF PHILADELPHIA BONDS

Compilation ofi^

enter

will

appropriate to
/. expedite. the reorganization.
as

Telephone HAnover

Appraisal

RAILROAD EQUIPMENT

Bldg., Phila. 2, Pa.

Stock Exchange
N.

Valuation and

% jiuytler & ©o.

Telephones:

Philadelphia—PEnnypacker 5-4646
£i v
New York—HAnover 2-9369 :

Bell

System

Teletype—PH

299

•Volume 165

Number 4556

THE COMMERCIAL & FINANCIAL
CHRONICLE

».'!'»>

>Jt

aim

■»-.»»

+-y<*

Elects New Officers

Conciliation Service

Bond Club of Buffalo
The

following

elected at

Public

officers

were

Utility Securities

annual

meeting of the
Club of Buffalo, held Dec.
27, 1946: : ;
-•?
-ix-,.
Bond

President, F. Taylor Root, Do¬
minion
Securities
Corporation;

Vice-President, E. Douglas

■%

How-

F. Taylor Root

Schoelikopfy

ard,

Inc.;

roy,

Hutton & Pome-

Secretary, > W.. Dougla$

Hopkins, Hamlin & Lunt; Treas¬
urer,
Chester O. Gale, Trubee,
Collins & Co,^
; ^ kM ' ;5
J
Directors elected ,-wer6: 'Wm. G.

Schoellkopf, Doolittle, Schoellkopf
&

Co.; Herbert Stearns, Schoell¬

kopf,^Huttori & Pomeroy; DeLancey Rochester, DeLancey Roches¬
ter
Company,; and > W. Morgan
Kendall, who, together with the
officers
and
Harry W. Sharpe,
Blair & Co., Inc.;1-comprise the

newTBoard^t

•

Montgomery; Stone & |
Peyser Open Nebr Firm'

Announcement. is

made of the
Montgomery,; Stone
Inc., to* engage, .in.'a
I general investment
business, spe¬
cializing in Railroad Securities.
Benjamin F. Peyser is President;
Lewis {E.; Stone,
Vice-President;
■

formation

Peyser,

Hale L.

dent,

Montgomery,} Vice-Presi¬

and

Secretary

J. Francis Eckstein,
Treasurer.
Frank
J.

Holcombe will be associated with
the firm,.
Offices will be main¬
tained at 57 William Street, New
York City

„

I Messrs, Peyser, Stone and Mont¬
gomery-were formerly connected
With

Adams

I itein

was

& Peck.,
Mr. Eckwith
O'Connell
&

Janareli

from January,
1945 to
September, 1946, and for 20 years
prior to that he also was con-

hected with Adams & Peck.

radini? Markets in
*Bates

Manufacturing Co.

Ommon

Liberty Aircraft Products if:

Bausch & Lomb Optical Co.

Rockwell

*Croweli-Collier

Jos. McMsrus Partner
jf.

Michael

J.;

Manufacturing Co.

♦Tennessee Gas & Transmission

Of.1■

*Foremost Dairies

Stocks

*Prospectus

S';■

•

lL'-,

'/■

•"

U. S. Potash

Request

Heaney,recently

felected President of the
Security
Traders Association of New
York,

Inc., has been admitted

as: a

ESTABLISHED

gen¬

1879

eral

partner in the firm of Joseph
McManus & Co., 39
Broadway,
New York City, members of the
New York Curb Exchange.

American Gas & Power 3.6s, 1953

Allan H. McAlpin Dead
Allan
the

New

firm

McAlpin,

York

partner

Stock;

Exchange

Wood, Walker & Co., 63
Wall Street, New York
City, died

at his home at the
age of

McAlpin had been
the

the

governing

1-932-ahd-

Electric Power 6s, 1950

62. Mr.

member

Exchange since' 1919s

twice dlected :t&
on

Central Public Utilities 5'As, 1952

Portland

and

was

four-year term
committee
v

>'r

Gilbert J. Postley
29 BROADWAY, NEW YORK 6.
Direct Wire

Chicmge

XY.V';7:

&
N.

Co
f

.1 ,r;

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, January^, 194?'-

Wants Inl'l Trade
On

Multilateral, Non-

By WILLIAM GREEN

President, American Federation

Discriminatory Basis
Some very
mformed group

National Foreign? Trade Council
files

bullish sentiment exists

among the small but wellof analysts on Wall Street which follows closely—
can be said—every change or indication of an im¬
pending change that develops in the market in real estate securities.
Bullishness in the thinking of these observers i&
nothing xecent,
though it can't be said that it dates back very
far, either.
Last
August, forr instance, many of<^
them sold
everything in the real as obsolete office space that has
.

even

minutely, it

believes

brief

with

Reciprocity

Committee

Information

•

estate line which

they had, refus¬

expose themselves to the
vagaries of what seemed to them

The

that time an
extremely un¬
promising market—and they ad¬

second;

made

large

-change their mind about the
pects for
number
view

formed

them

the
of

the

future.

them

inclined

are

situation

now,

only get better.

the

first

place,

the market in

ties

will

real

they

estate

improve

cil

brief

and

The

known to be running as high

very high price level of goods in
general and the low level to which

hibited

stock

last

prices

have

fallen

Thus,

the

argument

estate

would

the

this

tend' to justify
securities
in

fact

themselves, the analysts feel. Some

the

tate did at times

result

mistaken

the part of the

lie,

judgment

an error which

will

be corrected before
very

certainly
long. The

inflationary

trend
apparent
in
.general prices must, as always,

eventually make itself
spheres

felt in

noticeable

activity, ineluding stock values, it is pointed

in?

'"//v?

in .real

estate,

Earnings

it is ♦ contended.
all classes of real es¬

■.1

■

—

■

MorganStanleyPartners
Cortelyou

Simonson

h^ve not only been high but
will-remain high for some time.

The hotel business is

general

partnership

r^nt every room they have every
night because they want to be in
position to take care of old cus¬

pairs

will

excellent

shape,

mercial

reported

buildings

in
are

the

Samuel

Payne

Simonson-

of the New York Stock

L. B.

Groezinger Joins

SAN

Leland

FRANCISCO,- CALIF
B.

deterioration of the economics
of the most important in¬

the Council urged a vigorous and
cooperative effort by all nations
to eliminate discriminations arid
to

reduce

tariffs

riers to international

other bar¬

trade,)//;;',/•

Objectives were set- forth
lows, without ! distinction

of United States

Increase

American

level

the

imports

required

omies. '

School and the
was

relationship

/,•/

Hotel

1961

1952 WS,

Expansion

j
!

among., nations to the degree
which world; economic" recon;

of.

(Continued

New

York

Athletic

York

Towers

on page

Hotels

Club

1960

power*, i?

from?-,

my opinion;, it, is r
broad understanding ;

the lack of a

labor that
indispensable to each? \
other and that Hoth owe a joint f
and fundamental responsibility .to* I
the public to live together and
work together in peace and har¬

they

are

„

are Some of fhe minimum

medical

our

illness

care can

land,

without

proper

Realty 5s 1949 WS

Broad. St. Bldg. 4s

500

5th

Ave.

870

7th

Ave.

4yss

4
150
Tel.

been freed from Government /_•

now

controls.
It should be satisfied.
It should not seek the imposition
of new Government- controls on

labor, either by legislation

ad-

ministrative

the 1:

order.

end, ; would

That,

Government

mean

be banished from

ing determination to overcome all
obstacles which brought us
victory

the better all the time.

in the war:,

labor

1'. :

| But today, I regret to report,
wartime

unity has for the most
part disintegrated and America is
being torn apart by dangerous
tensions.
The key factors in our

static.

•

It must keep

changing f6r

recognizes this

time

industry

truth;- It is, F

also understood it

conformed

and

Organized

/;?

^o. it,: instead of ^
trying to apply the brakes and''
.

industrial

life

;

pulling

are

and

Hauling against each other in an
economic tug of war. The power¬
ful forces of management and la¬
bor which should be part of the
same

industrial

team

working

—

together, producing together and
progressing together—are now, in
many instances, struggling at cross
purposes.

That is

the

American way of life. It is equally
obnoxious to the fundamental phi¬
tion of Labor.
;

throw
j,

our

The

Labor

economy' into reverse/v /

American
hopes

forces of

triumph

the. few

V.';-//■-///

We in'the American Federation
Labor / believe
sincerely
in

teamwork / between .' labor

and.

will'//

extremists /

whose refusal to keep in step with

;

the times threatens the welfare of
our

country.

the /

1947

and progress

reason

.over

Federation

that; in

j/Int anticipation- that

not consistent with

Incorporated
n\."

the great

promise of the future will be fuU /

filled, I extend to all members of

the American Federation of Labor
and to the American

whole

best

wishes

and prosperous

people

for

as a

happy

and peaceful New,*/

Year.

,v'/'«■;?''

FO R"

i''i

HELP WANTED

POSITIONS WANTED

1956 WS

1961

OTHER CLASSIFIED ADS

»ff..v..'

Broadway f"
BArclay 7-4880

SEE

IflSlOE BACK COVER
.? '

•

safeguard the free enterprise of i
industry and labor. Industry has J

.1955

Amott, Baker & Co.

trade

35)

1956 WS

National Hotel Cuba 6s 1959 WS

•

purchasing

Then what is stopping

Common

East 42nd St. 3s

5% s 1963 WS
Mayflower Hotel Stock

■

general

Westinghouse Bldg. Part. Ctfs. CBI

Lincoln Bldg.

people and to bring
long' overdue reduction
We must keep wages

•*;?■ losophy of the American. Federa¬

Pittsburgh

2%s 1957 WS

Lexington Units

Hotel Waldorf Astoria Common

EXbrook 8515

econ-•

New

Bldg. 2l/2s 1949 WS

Grant Bldg.

|15S Montgomery St., San Francisco

OFFERINGS WANTED
Fuller

J. S. Strauss & Co.

between

University of Cali¬

formerly with Pills-

Gov.. Clinton 2s

Real Estate Issues

accumulation of

meet
domestic needs and to create a

balanced

fornia,

exports.

the American, and world

graduate of Harvard Law

fol¬

Their relative importance:
,
.1. Maintenance of a large volume

zinger,

Dlgby 4-4950;

;

Broadway New St.

■

and

un-

purchasing power high so that
industry and agriculture can, be mony.
*
assured of a domestic market for
;
The/ first" step toward such art11
the tremendous flow of "factory
understanding ; is/a firm - pledge-;
and. farm products.
and commitment tp respect and /

some

Manson, "Allan &

Trading Markets:

vTele. SF 61 & 62
:.*t
S'
"i

"vast
stemming
a

Miller, Kohl Building, •:?„ Mr. Groe¬

bury, Madison & Sutro.

Firm

—

Groezinger has joined

the law firm of

PL1., N .Y.

Exchange.

Manson, Allan & Mi!ler

Bell Teletype NY I-9S3

almost

are

to the need for

nations, and from
the
war-expanded American economy,

Morgan. Stanley ;& Co.," 2 Wall

control of business, too. Economic
stability and economic 1 progress.
j This, constructive - program. < r eV can only r be gained through eco¬
quires? a' high measure of national nomic; freedom, / '*
i
:
The American way of life is not
unity and the same kind of fight¬

Street, New Yorlc:'City, members

40 EXCHANGE

abilities

risks

dustrial

Members New York Stock
Exchange
Members New York Curb
Exchange

prices.

increase in world trade"

com¬

SHASKAN & CO.

cur

and

directly from wartime destruction

described

securities:

Truman's 5 '

between industry and

and

limited and the demand for food /
products and. factory products is
backed up by an unprecedented'/

homes

new

live. We must in¬
production to meet the

real estate

millions of

fa-

ported recently, the nation's productive

a tremendous job ahead
must halt the engulfing

As; President

are

Council of Economic Advisers re-

decent place to;

about

economic situation which

going ahead?? In

and,djscriminations which

basis.

pol-*

capitalize on /
the many elements in the present.
|
can

citizens and especially for
ex-servicemen who now lack a

j Pointing

long time yet, they point out, and
vacancies

prosperity

our

needs

criminatory basis."

re¬

for

unnecessary

lasting

inflation without inviting

must build

(

their international economic rela¬
tions on a multilateral, non-dis¬

to
hotel occupancy is run¬
ning around 95% now. Apartment
houses erected in the late twenties
such

Then

vorable.

•

reactionary tide of deflation. We

for

Ji<

•

accorded to nations which conduct

occu¬

reports,

;

hope for 1947 is that:

vantages in the American market

are

Green

•

that hotel managements
dislike to

times, hotel

William

;

urgent tasks facing the na¬
yti
/,
' , '
tion.- Beyond
"If any nation refuses to "con¬
these
immediate
duct its international economic re¬ goals, we must provide by lav/ a
lations on this "basis, the United full measure of social security for
States should refuse financial or the American people so-that the
other economic assistance to such fear of poverty, the" danger
of
destitution. in old age and the
nation and should deny it the ad¬

good, for

pancy could be actually 100%
the present time:;
According

- -

crease

tion

-example, that except for the fact

tomers at odd

tide

system,

;

security.

otherynternational eco¬
nomic relatiqp| pn a fair ancf non¬
discriminatory most-favored-na- >These

and

Samuel B. Payne, who have been
admitted

and

trade and

tate

labor.

> of

attainment

icy of all American business and..

fundamental freedoms and the

"I't has made vast financial and
other facilities available to enable
other
nations ito
conduct
their

■

.
1

protection
our

mainte¬

Our great

national coop-

stand in the way of establishment
of such a trading system.

securities has improved consider¬

-—

spirit

;

The work— /

be reduced.

can

this will become the accepted

eration for. the

multilateral, non-dis¬

(

and

revive

must

reigns*

peace

benefit, the employers gain///
the public as a whole pros- »

pers»

o m

barriers

as a

ably in recent weeks. vrkC;.

people-

the

American

prices
ers

fore

whole though, admittedly,
the tone of the general market in

However, regardless of what
happens in the stock market, a
strong basis exists for bullishness

"if

per¬

be? required

and

our

1./'The United States must there¬
dhslst;oh early removal, of ail

real

case

creation

States;"'.'

mar¬

ket

the.

the

Establishment "of such

move

estate securities than in, the

industrial

tion booms, jobs are plentiful and

all

nations.

the brief stated, is as much, if not
more, in the interest of other na¬
tions as it is in that of the United

es¬

along with
general but,, they
recovery has been much more
market

say,

all

business

out.

the

investing pub-;

justice

criminatory most-favored-nation
f; There is
world-trading system." :
of us. We

of the active securities'in real

the
of

nance

setting real
class
by

discrepancy, between general
prices and stock prices is simply

sult

alone

share- in

they should

When

of per¬

era

years of experience
worksF and that. it. pays.v >

when, labor-management cooperation is firmly established, produc—

manent peace,

agree to and effectuate prin¬
ciples and policies which will re¬

ex¬

break

that

can

world

based / upon

Dec.

governments.

are

Na¬

strength

market

and

summer

estate-

runs,

securities have

considerable

•

since

ever

is \ be¬
lieved to be too great to make
any
sense.

25%, it is believed.

Real

declared

countries

market,

will—•

foreign

Council

other
mitted

whole

public

that

lead

the

Reciprocity Infor¬

made

tions with 18

15 and

United
the

found

through long

the

tions

non-dis¬

-have

management.-

through

which

tional cooper¬
ation

in advance of scheduled" recip¬
trade ; agreement- negotia¬

probably be somewhere between

market

rocal

inust—show greater
strength than
it has. The difference
between the

stock

and

submitted

Committee for

50%. The compromise will thus

the

mation

are

securi¬

because

A,, compro¬

lifted only 10 to 15 %> but extreme
demahds for the lifting of ceilings

argue,

international; trade

multilateral

////I

America must find the answers to
the all-important problems of
peacetime progress in 1947. Our
country must keep alive the spirit
of
interna1
ac¬

conditions

(

criminatory basis, .was urged by
the National Foreign Trade Coun¬

rents, lifting ceilings
25%.
Some conservative
opinion holds that ceilings will be

over the course
of the next year at
least, the mar¬
can

expansion
on

apartment
15

establishment

upon

firmly established labor-management cooper"jobs are plentiful'and prices can be reduced/*

■

in other countries essential to the

mise will probably be reached on

the

long run, that is,
ket

sources" feel.

and that/;

Holds first step is to respect and safeguard free enterprise of
jp
industry and labor.

Insistence by the United States

hotels—a

pros¬

many

re-

■■■.

Says his? organization

between labor and management,

great hope for 1947 is

probably expects - to .materialize
very shortly now—will1 maintain
earnings on many properties at
lush
levels for
some
time, in¬

thought since? then, how¬

has

ever,

and

in teamwork

ation underwhich

sion of world trade,
on

development most of Wall Street

Sober

same.

houses

urgingof trade

j ciprocal trade treaties. Holds
j prime objective should be expan¬
't;

lifting of OPA ceilings

apartment

unity.

for

barriers by other nations in

of retirement.

years

vised others to do the

insistence upon removal

been put back on the market after

ing to

of Labor

National labor leader pleads for
spirit of international cooperation
and restoration of wartime national

Teletype NY-T-588^5

}

",-i

i i

;

Volume 165

Number 4556

THE COMMERCIAL &
FINANCIAL CHRONICLE
V

''V

\V 1

Our

Reporter

During

«"•

!*'&'•

Governments"

By JOHN T. CHIPPENDALE, JR.

1946

any-others,

were

the

pressure

inoriey^ rates,
.

Gr.

'777+ v".!/

Rapids Bond Glut

Elects 1947 Officers
G|AND RAPIDS, MICH.—The
Graill Rapids Bond Club held its

Thre

Christmas

annual

party

Dec. 20,

■

partially exempt issues sold at their best levels very
early in the year, although the lows were made in the
majority

of-these
bonds.
:

+>///■//

securities about the same
The restricted bonds

time as the eligible taxable
^continued to advance, for about
eligible issues had made their highs, to register

month after the

riew

tops early in April,: which was the high
point of the government market for the year 1946.
^ % Xy .>7.7:;7:.
^
V
Lows for-the year were made in the
ineligible issues during the
first trading day of the
year, although in some instances, prices, later
on in the
year, Were not far from these lows.

;•

resulted in rather wide price
movements ift government obliga¬
tions during the year,
v
Nevertheless, it has put the market for
these securities: on a much more
realistic basis, since it eliminated
the speculative element from the
situation.

;

the past

...

the completion of the debt retirement.

re¬

Treasury and Federal relieved'
although in accomplishing this,, it..

7;:

•

bonds, during

Ihst prices of 1945.

made their highs for the year
shortly: after the initiation of the debt redemption pro¬
gram,.while .the. lows were registered in each instance but
two, near

sponsible for the ending of the
upward trend in money rates, which
had carried government
security yields* to levels that threatened the
maintenance of».the wartime rate
pattern;'.'.-;
The: concerted action of the

government

bank-eligible taxable bonds

prior to

many

the

GENERAL TREND

important 'developments took place'in the
money^ markets,vthe most notable of these being the end of deficit
financing by the government, and the debt reduction
program of the
Treasury.
-.
These two
factors, more than

showing of all

year, when compared with the

The

=====

;

' ' '

best

••

......

Despite all that has taken.place
mpney rates still remain low, and
are
that; they will cpntinUiEH that way for some time yet.
Also the monetary authorities still have
control of the money

Higher Wages Needed

indications
I ;

markets and there is ho .reason
;td believe that it will be
until there is at least; a much" more

than has taken
place so, far.

otherwise,

substantial decrease in the debt

♦

•/+

By PHILIP; MURRAY*

BATE PATTERN UPHELD

^ /

President, Congress of

puring the early, part' of last i year .there

considerable

-was.

con¬

rate

pattern

...

still

intact' and there is
than there has been at.H
What has taken place in market prices for government securities has all been within
the limits of this same
:
rate pattern, yet it has resulted in some rather sharp price gyra-

•;y probably less, likelihood "of change:
times in the* past.*.

}'i

,V tions in the

■

now

course of the last year..,. This shows that
there

x
v As. we enter the/first< days of
11947,
thought to>What lies uhead for America.

J crossroad; the

was

decisions
make

Eligible

Bank

l3A%
2

High'(date)

Closing

Bid Price

102.3

;

100.31

(12/2)

103.23

(3/1 >/-i

101.29

(12/2)

103.29

:;/i02:4/+

(3A)

102.1

(12/2)

102.9

102.6
(12/2)
102.1 !4({12/25l

104.1:

3/21

•

2%>-

12/15/51/55

•

104,27

3/15/52/54

•

107.15

,6/15/52/54r,

•

2>A%

104.27

2V3%

3/15/56/58*

2%%

100.27

few.;,
i

101.7

(12/2)

(3/11)

104.15

(12/2)

103.29
102.29

107.18

(4/6)

.104.7

(2/8)

104.22

(9/19)

the

rest"

of| the wdrld
yjjt y-

—1.13
—1;30

•:

vision

—1.16

105:20

;

—1.15/

—2.23'

106.-10.

106.8

t-1:2

108.27

home; lack

Dec.

termination

31,-1946.

; The v Committee,
under / the
Chairmanship of Herbert Rose,

Director

CPA's

Divi¬

Textile

governments

world short supply. The Commit¬
tee temporarily continued, in the

gain - the respect ' and /admiration
of vptber: peoples^ in other elands.
All Will/benefit from

member

prosperity at

needed to keen, our
its present peak.

peaceful

prosperous;

mend

our

wealth,

Sense of social order.

tribution

field

p'ossible of textiles in*

of textiles,

Combined

the work of the

Production

Re¬

and

Board, which dissolved at

sources

the beginning of this year.

right decisions, we
:
x
'
look: squarely; at the- facts of
We'cant assist1 our <(ohe:world'*
present situatiaon, • and • face in many ways f0 "help it overcome
The most substantial decline
during 1946, among tbe eligible tax¬
[the* dangers that -confront us.. t- the-s<^rs-of" War:pnd conflict/ / A:
able bonds; was in the longest^ Vz s with all
of the 2s due from 1950
Primary "among. those- dangers progressive,/ Intelligent policy tb
ibn;: showing decreases of at least a point from the
.closings of 1945. is the threht of - economic depres- spur foreign" trade; a willingness
^
J Recessions from, the:
tops fof i the year were 'greater; than the !sion. Thesimple facts point• ur¬ to • help our / allies- economically
drop from the last prices registered in 1945..
Every, bond: showed; a gently r to the • necessity; of our and- a policy' pf humanitarianisnv / Hill &
Co., members of the New
decline from the closings of the
previous year; as seen in the'follow- building a high
leyel of purchas¬ free from politics; a recognition York Stock Exchange, announces
fng:
ing. p6wer if we are - to mciiiitain of the" fact that* democratic people that Mervyn B. ■ St'itzer has be¬
Partially Exempt Bonds—Bank Eligible Issues
■our present prosperity. If the level have the
right to chose their forms come associated with the firm as
<5f ' purchasing : power ' falls,
the of government; solid support for manager of the New York sales
;12/31/46 12/31/45
—2.19

must

+s||i' ///; ,;:■

the

Stita to Manage Sales
Office of Hill Co.

Security

/
.

2%-

Price Range 1946
High (date)
L6w (date) ;

;■

•10r6.12 (1/17)

,12/15/47
3/15/48/51

■

23A%
2Vzr/o

12/15/49/52
12/15/49/53

;;

2V*%

102.6

106.11

(12/2)

1(1/261

104.12

(12/2)

105.8

(12/2)

107.2

1(12/2)

106.19
•

107.2141/23),

''4'6/15/51/54

109.29

(1/23)

::>9/15./51/55
/ 12/15/51/53

111.22

(1/23)

107.26

(1/23)

2Vi%
2Va%

"6/15/53/55;
6/15/54/56

2% %
2% %

9/15/56/59
6/15/58/63
12/15/60/65

2/A %
2%

105-.9

107.26. (1/23).:
109.31 41/23).
116.3
(1/12)

" 4 3/15/55/60

116.15

•

104.28

106.20

108:24

104.15

','k—2.124

106.10

i/lO5;10v7,

107.10

108.17!-

(12/2 V
(12/2)r

105.14

—2.00C

111.8'
107.12

.107;

(9/19)

117.6

(1/12)

(1/24)

113.9

4-2.114
4 —2^23'"

107.3

109.5

—1.30

—2.5

114.28

115.4

114.25

115.25

117.14

The pattern c^7the
of the eligible taxable

poy>er of the people;

2.21

There is

issues, although the. shorter • maturities with^

Jiigh cbUporis showed sizable, declines because-ofrthe
.

44J

ity. 'of: bur

great- corporations

reser'Vbir, of

''ly'

Taxable Bonds—Restricted Issties
4? Security
&A%
6/15/59/62/
2W/o
12/15/59/62:
2 Wo
6/15/62/67
2 Wo
2

12/15/63/68

6/15/64/69.:

2 V2V0

Price Range 1946
•/gh (date) ,1
Low (date)

104|22; (4/6)

100.29

104feS

(1/2)

100.29

(1/2)

(4/6)
,108.13 '(4/6)

103.19

(1/2)

108.4 / (4/6)

102,29

(1/2)

107.25

102,19

(1/2)

(4/6)

12/31/46

last three months of this year just
ended' are: estimated to be three

.100:28

105.

103.18

104:17
-104.4

12/15/64/69
3/15/63/70

107.24

(4/6)

24%

-107.23

(4/6)

24%

102.10

(1/2)

104.

'3/15/66/71

107:23

(4/6);

102:7

(1/2)

104.

24%
24%

6/15/67/72
12/15/67/72
i

d/2)

102.16

104.1

/ Chge.-r-

in 32rids
;>

+VLIO

!: + 1.10.

: >

\ :+i,i4

102.28

+ 1.21

10?.17

:. + i.i9

102.16 ^

+ 1.17
v

102.5/3

106.17

(4/6)

101,14

(1/2)

106.18

102.29

101.14

(4/6)

101.14

(1/2),

102.28

101.14

\*.,'

therplus side by

\yere on

the

closings of 1945.

we: are

+ 1.14

than

for

These 'securities made the

the

tion of

Which-agree with'
;

ex¬
or-

the + community
our

policies and:
-;

The formation pf such a demo¬
cratic coalition, :: to> /protect/ our
basic civil" rights, to improve our
.

economic welfare; to set us square¬
ly on the road of social progress
-+-that is the challenge of 1947.

that

prod¬
:

our

F.W. Reichard, V.-P.
Of Ghas. E. Weigold
Announcement

our

reason,

System,

made

that

W. Reichard has been elected

And

submit

Vice-President of Chas. E. Wei¬

Inc.,^'40 Wall Street,

examina¬

New

City.

problems and for the
*.t..7 t/ :
[ 'Vi +

was.

has

come,

constructive

J*Ah -address by

over.^the

gold & Co.,

time

MutuaK

for

co-

Mr. Murray
Brpadcasting

Jan^(t4-94^./lj\j2'

Arthur Sewall Wift

York

Mr.; Reichard

formerly with E. H. Rollins

'SonS,: Inc;,

conducted

his

and

prior

own

thereto

investment

business in New York*-,

3+v.+/

/1!

Montgomery, Scott Co.
/

Montgomery/ Scott &

120;

Co.,

Broadway, New YOrk City, mem-j
bers of the New York

other

leading

;

that

nounces

has

become

Stock and

exchanges,

Arthur

to* ;

IIJ

Sewall,

associated

with

the

firm in the New York office.

Mr.;

Sewall

the

formerly

was

■

Boston and

apt to face in 1947.

bpera'tiVe,

+1.15

drganizatiGns. to
tend that invitation to all the

/- That is'lhe very danger which Fred

that

•

Industrial

economic- -machinery • stalls,
our
prosperity vanishes, almost over¬
night; all our people suffer:- >

+1.23"

Despite the Sizable recession -from 'the best
levels of the year/
all of the
ineligible/bonds

point from

Congress of

When/the people do not have

+1.27

102.9
•'

profiteersj

12/31/45

Closing
Closing.
Pr|ce Bid f'rice
/102»6:
100.28
102.6

taties, Ihhn

sufficient funds *to buy the
ucts held by the -

Bid

like- in behalf -of the

tb ■oppose reaction;.

purchasing
in- the

our

backward trends. Tonight I would

ganizations

payi increased wages fand re-fill

;

ul11'

Recently l eaned upon the heads
Pther " brancHes bf organized
labor? to' /work^+uhitedly '* against

question of the abil¬

runoff 6i
limes:, higher, after
All of these securities
likewise, showed declines from thethey wefeln
closing of a year ago, to wit:,
.1^39. ;
:
4

mium.

:poWer;K:Cbfp^atioH; prbfi^

dissimi^

n6t

was

no.

office, 61 Broadway, New/ York
City. Mr. Stitzer was previously
with Shields & Co., and Weedent

pl^d ' Ihe^SpotliMhf *oii /the
'dangers to our continued prosper¬
ity; fhrides:/h^Ve: riseh drastically

the

paHially-exem^

we are-tb maintain purchas-

—2.16
>

4.;'.

SHWtlLAR" PATTERN - F

keep - it- running smoothly.

—2.17

113:9 '

(10/3)

•

—3.2

112.19-

the United Nations—all these Will
wim the genuine z support for our
flag /and. our ideals in every sec¬
tion of the glooe; •

!ih the past few months. Each such
rise
cuts. into / the purchasing

441.28

111.'20.

•111.30410/3)1

119.1

jt"

105.7

mstchine'

—.1.214 iing. power, we-must raise, wageS»
^Reliable, outstanding, 'economists

^106.12

(12/2)
(12/2)

—1.29 k

103.13

•

—1:7-^'

economic

104.7 :

•102.7.:
;

gears,' of ' bur

^will lack the Vital; lubrication to

104:15

109.14

111.18

(1/12)

102.13

•

,107.3 4

lll;8'

•

Chge.y
—3.12.

(12/2) j

108.16
.

•

-in 32nds.

1064

102.10'.

/102.27

C12/2)'

2%%'
:•-

>101.6

(12/28)

(12/31)

4109.0041723)

.9/15/50/52

(12/3H
102.10

102.26

-103:25, (1/23)

••

1O2:24 .'

(12/31)

(1/21)

104.25 ;(l/23)4:

12/15-/48/50;

3Ve%

Closing
Bid Price

;

102.24

102.23. (1/18)
,4104.15

9/15/48

2.%V '

Closing
Bid Price

10/15/47/52*

4'A %

announced1/its

coordinated export program which
would secure as* equitable a dis¬

World,- and v struggle to - realize
quickly thev goal of a better life

—1.23.

109.27

105:8

for alb people.
To makei the

/
:

Committee Terminates

'■
/
+
In promoting a land of
prosper¬
ity -and social stability,: we shall

Philtp Murray
and d'espair.
/But prefert
.:w
; ably' we • must Catch hold of the

—1.8

10411

•

be only that

can

strife ahd tbrmoil

[for ^chieyirig;^/higher /WkgCs ;&hd
the
/ higher
purchasing / power

us"

into confusion ~h

•—.12 '. "

Combined textile

sion, included representatives of
sponsible ' arid
devoted
United
to
the the
States^ the United
American liberal tradition, consti¬ Kingdom, -France/ India and Ca¬
tute our most reliable instrument nada.
Its purpose was to recom¬

drag

"+-.l'Pt>

•'

104.12

107.4

(9/9)

10918

104.10

102.27

(12/2)-'

(12/2):
(12/2)=

nbw "Congress" attempts
back to 1932, the

down With

107.00

103.9

the

prospect for'1947

do so, we will

■'

,'—28't

101.19

105.2

to set-the clock

102.9
106.4/

—.31

104.1

(2/10)
(2/8) '

—.22

103.17 ;/

102.29

(3/11)

102.8

depression:

103.7,*;/

102.25/

102.13412/2)

3IGGEST DECLINE

•

Young, Larson & Tornga.

our

another major

Chge. •>

,103.5

/+IO247/

confidence in American ideals
abroad/: Free ' labor unions,: re¬

—.29

•101.22

10^.15/

(12/2)

102.8

'•

9/15/67/72

It -is im+

.so

102.15} *> 103.151

(12/2)

(3/11)

110.22- (2/8)

In 32nds

103.3 //;'

106.10

9/15/56/59

2l/2 r/c

102.8

lOliOO

10S.1

6/15/52/55
12/15/52/54

year:

President, Clarence D. Allen,
Dudley H. Waters & Co.; VicePresident, George H. Ricks, Mer¬
rill/Lynch,
Pierce, - Fenner
&
Beane; Secretary, Charles E. Rose,
Paine, Webber, Jackson & Curtis;
Treasurer, Herman Tornga, De

WASHINGTON, Dec. 31 (Spe¬
democratic kcivili^atibn is i to
to - the - ''Chronicle")—The
eh+. cial
dure.and- develop."•
-J Combined Textile Committee has

the

we. do

country turns
downhill into

Closing

Bid Price

♦

(12/2)

12/15/49/51 '

perative: that

whether this

12/31/45

101.6

IjOW (date)

,lbl.5

?%-:■ :>v "i 3/15/50/52 1 JJ104.2l(3/lr'f
2%.: : ; ^9/15/50/52 "•
104.7
(3/11)
1V*%
'12/15/50
102.16 ^(3/8)
9/15/51/53
/ "104.19 (3/11)

*;102.13> (•3/1) •
402.3; (3/11 :

6/15/49/51
•9/15/49/51

%m;*:

ing

We stand todayXat

| find ing ©f hew solutibns;1

6/15/48

/•

weeks will de-

Issues
12/31/46

Price Range ig46

3/15/4S/50

Taxable feondsSecurity

■

give sober, serious
a vitally

we must

imp or tanf

•

12%, t

1946, at which time the following
officers were elected for the com-

.The following, table shows
price changes *ff6m the end Of 1945
to the close of 1946r
*
'
\,
-

Tornga

ample opportunity, for trading: lakt year iii
government securities
and despite opinions in some
quarters that the market Will be
jmore stable in 1947, there should
be wide enough price swings
/this year; to make trading again
/worth iVhlle.
1
'

Organizations

Herman

major depression. Holds
chief problem is to build up a I high level of
purchasing power
through higher wages, and stresses large corporation profits as in¬
dicating higher Wages can be granted without price; increases.
Warnsnew Congress not
set back the clock to l932," and calls
foraprogressive,intelligent policy to spur' foreign trade and sup- ?
port United Nations.

Nevertheless, the

industrial

Prominent union executive asserts decisions in: next
few:weeks will
determine •; whether there'll be another

cern over the
ability of the monetary authorities 'to maintain the rate
pattern of % %} for; certificates: tb
for/loftg^erm^ obligationsj
because of the strong uptrend
in^prices of; government securities.
Later in the year there was
again some question about the coptinuhncejof the.rate pattern? but/this time it was hot from the
standpoint
of rising prices
for; government obligations, but because of
the/ der
cline that has taken place in these 'securities.
< ;
*'
<.

Keep Prds|ieritV

with

San Francisco offices

of Todd Shipyards Corp.

Purcell Co.

Opens
V

Branch

New

JAMAICA, N. Y.
Purcell

New York

opened
161st

Co.,

a/branch

f
of

was

the

Exchange, have
office

90-04:

under the manage-,

ment' of Chandler G. Burrows.
Burrows

Edward. A.;

members

Stock

Street,

'i-

\
,

formerly

Mrj

Jamaica

manager for C. B. Richard & Co,

THE COMMERCIAL &

'4.//:

No. of

*.>;

1,1

Group Stocks

Bank and, Insurance Stocks

VAN

DEUSENi

the

In which fire insurance stocks should

;

1947?

The

those

relatively high dividend yield with secondary prospects of long-term
equity growth and market appreciation, or does he desire moderate

combined

with

superior prospects for long-term
equity growth and market appreciation? Or is he perhaps more spec¬
ulatively minded? The following table may assist the prospective
investor in making such selections as seen best fitted to his
particular
requirements:
••
-'
•
• ■
■,

Annual

Price

Rate

12-27-1946

$1.80

______

Agricultural
American

Bankers
Boston

Insurance

Equitable
& Shippers.!

Insurance

Yield ^Coverage

Great

Home

National

Go.

Fire

New

1.20

2.00

______

Brunswick

Hampshire

North

Paul

;;/!3.0

•'

4.0

I
22%

M 4.0 M

■,;/

41.9
19.3

1.29

9.3

107

1.51

71'///

3.8

1.90

3.0

4.6',

2.56

30.5

1.40'

Springfield Fire & Marine.

4.T5

Fire„!__!!!!!!^a_!!;

57.7

'74

25.6

2.00

/ Average

■"Coverage

profits.

1.47

24.8

will

1.54

4.2%

;] .fee

consolidated net operating
measured by accumulated
values (parent).
§AcJjusted for

1936 liq.

the

sented

text

correspondence, as

pre¬

and

pub¬

Parliament

participation in such develop¬

British

machinery, British patents
designs, and British technical

and

lished officially follows:

ish

ment,' especially in the form of

skill.

o£, j$iisftabula¬
that,

observed

the .1946 ,annual, divi¬

the.askeq prices

and

the stocks

of Dec.

27, 1946,

dividend yield is
4$%; the average dividend cover¬
age
by net operating profits is
1.54%; and the average length of
unbroken dividend payments is
the

rates

average

67 years.
For

of discussion the
25 stocks may be roughly classified
according to dividend yields into
four groups as described below.
purposes

I — Exceptionally high
dividend yields are afforded by
American Equitable, Bankers &
Shippers
and
New Brunswick.
/However, the dividend coverage

Group

found it necessary'to reduce
annual

than. 1.0, which introduces an ele¬
as to the continuity

the

dividend rates/de¬

fact

Bankers

that

;

payments
:

•

their
after

age

ratios, but the sec¬

coverage

ond three have ratios below aver¬

New Hampshire's ratio being

also be observed that the number

age,

less than 1.0.

payments
average.

each

dividend
is below

unbroken

years

case

•''

;

/;/ BANKp|||
aid

and St. Paul Fire1

stocks, howeveiyhave above-aver¬
age coverage ra'tip^/ except Phoe¬
nix, and longer/than average un¬

;:%i*>#//

INSURANCE

broken dividend1 payment

Fire's

Hartford
in

class

stock

New

York

Stock

highest

Telephone:
V"'

yield

dividend

furthermore,

the

and

coverage,

the. highest equity

growth percentage.

BArclay 7-3500

ve\°tvvP~NY

'It. A. Gibbs,

having the

Exchange

W BROADWAY, NEW YORK 5, N, Y.
/

actually is

itself,

lowest/ dividend

Laird, Bissell & Meeds

records,
Washington.

Providence

except

STOCKS

Members

Marine. These

t-1248-49

The four groups

;

Manager Trading Department)

marized

can

follows:

sum¬

discussions
of

concerning

economic

interest i to
which

and

our

mat¬

commer-t

two

coun¬

held at the For¬

were

Office from the 17th to the
20th
September,
1946, between

the

representatives

ANAYLZED

—

Sold—Quoted

REVIEWED

COMPARED

-p

Special Bulletin and Booklet Service to Dealers & Brokers
Trading daily 7
/

a. m.

Inquiries invited.

to 5

p. m.

(P. C. T.) !

CO.

New

York

—

Chicago

TELETYPE L.

279

—

L. A. 280

the

announcement

the

September that the Navicert
tem

terminate

would

The

1946.

of the United Kingdom,

20th
sys¬

the 30th

Brazilian
'

honor to

the

have

request

food-stuffs

ivital

and

raw

The Brazilian Government Will
send

the

United

Kingdom

special purchasing missioii organ¬
ized

by the Brazilian Ministry of

Transport,' I including

representa¬

tives of the Brazilian Ministry of
Finance

and

the

Banco. do

Brasil, to discuss the procurement
of the material urgently required
by

Brazil

for

the

modernization

rehabilitation
of

her

trans¬

for the purpose of
these purchases and such other
purposes as may be agreed upon.
His Majesty's Government in the
United Kingdom will render all
possible assistance to the rapid

ing

balances

therefore

welcome

the

asserts

statement

of the Brazilian Minister for For¬

eign Affairs that he will person¬
ally make every effort to ensure
that Brazil will implement inter¬

strongly
stressed, * since labormanagement/ difficulties delayed
achievement
of present record
.

employment and production / by.
several months arid their effectSF
still being felt.

are

Participation in the
Industrial Development of Brazil.

Seattle
'.

His

the

^Majesty's

Government^ in

Kingdom have noted
with satisfaction that importance
United

/
^

portion of the Report givgeneral review of develop-,
ments since V-J Day-follows; ',
; The
Civilian Production. Ad-.,?
ing

ministration

formed

was

little

to take up
where the War Production Board
left off. As it was the primary job
of WPB to mobilize the nation's
than

Minister's declaration'that

the

goodwill

as possible, so it was CPA's,
chief function to demobilize con¬

and

trols
back

transition///

speed? the
normal,

peacetime

economy.

} I
/

Production of materials
products which had not been
for the war
effort had;

needed

curtailed during the

been sharply

years, as for example
struction
materials,
which

war

con¬

had/

not been in demand since the war

boom in 1942, and.
durable, goods,, such I as,
automobiles,
refrigerators, and I
washing machines. Following V-JF
Day there was a tremendous surge
of demand for these and many
other items. CPA has acted, im

construction

which

are

tribution

turning out

the goods needed and wanted by
the American people, and
to

provide

dreaded
flation.

thereby

effective

the. most

preventative

long-range

aftermath

of
'

the

wars—in—

Six-Fold Assignment

assist

in bringing about

transition

orderly

CPA

peace,

from

war

asigned six gen-

was

functions

eral

the

Executive

(Continued on page 39)

Australia and New Zealand

bank/of

meat, which are ur¬

cereals

and

gently

required

;

areas

of the

(Continued on page 38)

1S17)

(ESTABLISHED

Paid-Up Capital

780,000

...

Reserve
'•

Fund

Reserve

Liability of Prop.» 8,780,000

6,150,000

.——ii-i.—-

rt£23,710,000
1:

suspension of the export of
commodities, particularly
food-stuffs such as rice, beans,

wales /

new south

;

certain

possible to encourage?

way

and assist industry in

BrazilianpfopleiM?j fau'} M

consumer

the part of

difficulties
even affecting the dis¬
of .foodstuffs
to the
transport

and

■

industry to win the war as quick¬

the Brazilian Government, but to
internal

delays in the export of Brazilian
food-stuffs have been due not to
lack

year ago

nationally fixed allocations.
His
Majesty's Government take note

(5) Brazilian SuSpMiOn of Export
;
v
of Certain Commodities of
•
and efficient fulfillment of orders
/•Prime Necessity, v ■
; j
for transport and industrial equip¬
His Majesty's Government have
ment
placed by Brazil in the
been concerned at the recent Bra¬
United Kingdom.
British

impact

stoppages cannot be too

work

unfavorable

serious

the

mater¬

of British Transport'
ials, of which Brazil is the proand Industrial Equipment to'
i
ducer, to the countries where they
; J
//
Brazil., -1 ' / '
are most urgently needed.
They
Supply

(1)

Small

every

Bis

Majesty's Government' at¬
tach great importance to the op¬
your
Excellency
to
be
good
eration by the Brazilian authori¬
enough
to
confirm
the *above
ties of national administrative ma¬
record of these conclusions,
/
chinery designed to implement
.1 have .'&c.
the
allocations, agreed
by the
ERNEST BEyiN]
)Various
competent international
I///;/ //'/■'./:, Enclosure. y/ 1 ,' ^organizations for the supply of
I

Mr.

forts,

*l ?

•

Aggregate

f-.;.

Sept.,

*- •

Assets

Head Office:

■

.•

■==»

» '

£223,163,622
BAKER

General

HEFFER,

Manager

■;j-

George Street, SYDNEY

LONDON
29

••■■■

30th

194S

'y THOMAS

zilian

///'//I'/,;/-/./

San Francisco

—

the Navi¬
cert system, the British Delegation
informed his Excellency that ar¬
rangements had been made for

comed this information.

(2)

210 West 7th St., Los Angeles
PRIVATE, WIRES

the early termination of

ment

OF CALIFORNIA

welcome

Orders solicited.

BUTLER-HUFF

would

Minister for Foreign Affairs wel¬

and

Bought

Government

Govern¬ September,

port system and industry, and the
utilization of the Brazilian sterl¬

Insurance & Bank Stocks

his

ment of Brazil and of the Govern¬

Group IV—Dividend yields be¬
low average are found in such
stocks | as Aetna,
Boston, Glens
Falls, Hartford Firie, Inc. of No.
Amer., Phoenix;'Pi*ov. Washington

The Brazilian Minister for For¬

eign Affairs having indicated that

honor

the

have
your

copy

these six stocks have above-aver¬

Shippers and New Brunswick each
has already reduced its rate with¬
in the past three years.. It should

hand

Excellency herewith a
of the agreed record of
conclusions reached during

Group Ul—Dividend yields the
which approximate the average of the
4.2% are provided by Continental, ters
Fidelity-Phenix, Great American, cial
National" Fire,
New Hampshire tries
and U. S. Fire. The first three of eign

ment of doubt

spite

1943.

ratio of these three stocks is less

of the present

dividend

success

these ef¬

The

Group II-rOther above-average Exchange.'of botes b'ettveen His
yields are provided by
Majesty'? Government in the
(3) Import into, the United
Unitedi Kingdom and the GovAgricultural,
Fire
Association,
Kirigdom of Brazilian Mate.
Franklin, Hanover, Home, North U eminent *of Brazil concerning ;
His
Majesty's Government in
matters1 bf; economic and comRiver, Security and Springfield
the United Kingdom will remove
Fire & Marine.
Here again, the
;
merciaT interest 'to the United
the existing restrictions on the
dividend coverage ratio is below
Kingdom and Brazil.'
import into the United Kingdom
the average of 1.54, except in the
of Brazilian mate and will per¬
case of Agricultural and of Home,
London, 21st September, 1946
mit this commodity freely to en¬
though the latter's is only frac¬
f4o.lt
ter the United Kingdom market
tionally above average. The un¬
Mr. Ernest Bjevin to Senhor Joao to the full extent that a demand
broken dividend record, however,
IV jr, /Neves da Fontoura.
^ iforat/inay/exist/l^
,is well above average except for
.v? ,V V/V/V.;
VV'VtForeign Office,
Security of New Haven. It is per¬
(4). Termination of the Navicert
; ■
'
21st September, 1946.
tinent to recollect, furthermore,
System.
that
both
Franklin
and
Home Your Excellency,
dividend

;

dend

the

financial relations. The

and

inflation.

Though highly
laudatory o f

spondence determines matters re¬ ; dustry in Brazil and that the Bra¬
Anglo*Bfazilian: trade zilian Government wish for Brit¬

22.9%

and avoiding

lating /to

dividend rate by 5 year average
dividend record. ; JTen year growth,

On examination

19.1

///4.(}//;

undistributed net operating profits relative to

based

current

capital changes.,

52"

1.36

25
of

tUnbroken

tion

1.53

4.4

107 %

re-

sion

conver

Sept. 21, the British Government and Brazil ratified an ex¬
of notes concerning matters of economic anjcl commercial
the
two
countries.^
.a --,
Though hot ; in the form of a is attached by the Brazilian Gov¬
treaty, .the coritehts of the corre¬ ernment to the development of in-

•

§Security Insurance

the task of

interest /to

ac-

lishing

orderly

change

.20.6

c o m

12.0

3.4

work

organiza¬

tion

Status of British-owned enterprises in Brazil fixed.

Britain.

11.7

76/

is in healthy condition, with
production
at
postwar
peak.;

the

commercial
interest, permits import of British transport and industrial equip¬
ment to Brazil and British participation in Brazil's industrial devel¬
opment. Provides for termination of Navicert System and for sus¬
pension of restriction of Brazilian exports of prime staples to

/ .12.5" '•' /

econ¬

our

omy

his

Exchange of notes concerning matters of economic and

65.4

0.96*

30%

2.oo /:

j'tT

Understanding

30.5

//I/

accomplish¬

title,': rt'F r o m
War to Peace,"
dated Dec. 6,
1946,; reviews

my*

11.2

0.82
'//■4.1/Z
// 4.5// / / 1.12/Z:

36%

groups.

Anglo-Brazilian Commercial

•

5.2':/

86'/

and

concludes

dividend/rates; but only

present

17.7

tasks

and

ments

38.5

Reviews

Group II and offer bet¬

8.2

1.92'

••

;;

growth
should
be
expected.
Group III
stocks, with somewhat lower div¬
idend yields, have their dividends
protected moderately better than

second

34.1

1.58

5.8

1.40

M.__c._!'

■

•"

.'/*

35.2

'//■

moderate long-term equity

those

25.3

/:■;;

115 '

1.84

50%

3.00t;

;

//!

2.16

4.2

99%

1.00/

Washington

4.9

/ /

2:10

Insurance

1.78

'.// 24%

1.50

River

Providence

3.00/

Amer.

26
1.23
w'A.e/;
t/, 3.42
104%'// /; -2.4

•

■:/ 'Z/X25/>/
1.15 //,
/

3.6/

28%

1.20

of No.

New

Phoenix

I'51% ;•/:

equity growth; those
Warns of unsatisfactory laborter prospects
of equity growth.
group; in view of
management conditions.
record of uninterrupted Group IV stocks provide relatively
modest yields, but their dividends :
John D. Small, who resigned
dividend payments, are attractive
are generously
covered and their recently as Civilian Production:
on a dividend basis, assuming that
long-term equity growth prospects Administrator, in his final report
there will be no cuts in their are superior to those in the other to President Truman under the
the

28.9%
—4.9-

0.71

4.1

4.9

2.50

Insurance

4.7

1.20
/L"

Fire

^Insurance

54 !/!/;

20% !

1.85

Fire

Hartford

1.55

groups

26.1

their long

23.9

?'//

/ ///1.73-//;: /■

4.o

other

15.0

;

•

2.12

Growth

0.10

6.1 ""

1.00

American

Hanover

2.50
—

Falls

Glens

1.85

5.6

49% .% :f
'

2.20

Fire

are

1.50

; 5.0%

tEquity

tYears

1.89

•

4.8

'65 y2,"'

2.00
/:

Association

Franklin

3.2% '

2.20

________

Insurance

,17%

4.00

Fidelity-Phenix ;

St.

Safety Factors

; i

;

1.00

Continental

3.50

stocks in

Equity
Growth

1.38

4:10
3.22

of long-term

Aetna

the

0.59/

4.67;

only meagre prospects

offer

'Record

Dividend

■

Dividend

Fire

Asked

group

Unbroken.

Coverage

...

Average

Average
Dividend

Average

inher¬
risky and speculative

than

and

yield,

Below Average Yield—

high-yield

question depends on several factors,
chief amongst which is the objective of the investor. Does he wish

dividend

ently

invest available funds

one

this

answer

Yield,

Average

"Average' Yield

It is obvious that the

This Week—Insurance Stocks
in

Above

III
IV

-3

;i.-

Classification-— ■>■:/,. 'VYield
High Yield
I
5.83%

.»

Thursday, January 2, 1947;/

FINANCIAL CHRONICLE

OFFICES:

Threadneedle Street, E. C. 2

'47

Berkeley Square, W. 1

Agency arrangements with Banks

throughout

the

'
,

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4556

yolume 165

voluminous evidence

What Case Against the German Bankers?
1

(Continued from page 4)

Industry

tarily

contributing to the secret
financing of prewar rearmament
contrary to the terms of Ver¬

sailles); of crimes against human¬
ity (by virtue of their close
nection with

con¬

employing
and slave la¬

concerns

concentration

camp

bor); and of war crimes (by ofiering and making available their
facilities

for

the

conduct

or¬

ganized looting in occupied coun¬
tries),
The question is, rather,
what motivated the collective
rest

large

number

ar¬

men

comprising

every
high; ranking
practically all larger
German
banks, some of whom
bad, like Schacht been in Nazi
prisons during the war. The orig¬
inal concept of war criminality as
developed in the United States at¬
tempted to include all persons who

official

aided and abetted in the prepara¬

tion,
the

declaration, and

Nazi

effort.

war

pursuit of

was

war

crimes

the SA and the SS,
the selection actually cut across
almost all fields of endeavor, in¬
cluding
professionals,
scientists,
as

the

most

Third

them

were

Reich, and

former

Jewish properties and
preparation of economic

the

cific considerations of

ly proficient in their field to ad¬

also

nature

different

became

criteria; par¬
financing the war
general, and affiliation
with big industry in general (re¬
gardless of offenses committed by
individual
enterprises)
as
ex¬
pressed
in
terms -of financial
status. The latter consideration, in
all probability was a corollary of
the concept of "Excessive concen¬
tration of economic power" which
later
appeared in the Potsdam
agreement.
I
y
ticipation
effort

addition

the

"Big

Six"

banks named above, the arrest list
contains the partners of most of

tions, such

those

exception,
closed

was

ment; I the
Bank

none

these

banks

major,

who

are

than having been sufficient¬

not

guilty of

anything

faster than others who may
less talented. Only at

vance

able

and

The

experienced old-timers.

some

Reichs

the

was

VIAG,

company

kreditgesellschaft

"house

bank"

the

Reich-owned
holding
of several manufactur¬

this bank
stant

such

banks,

their loans

elect

con¬

then

choice

influence

Government.

Deutschen
1933

The

Arbeit

foundation

Labor
which

Front;
had

was

the

taken

When

Bank

the

der

post-

German

organization
all

over

labor

union activities. Its officials

were

Party members* almost to

man,

and

its

business very largely so¬
and procured through the

Austria

the

ment

Iwith

its

Austrian

divergence

actual

this

annexation

case

cause

Be¬

der

of the comprehensiveness of

this list, US Group CG, then the
nucleus
of the future; Military

VGovernment
*

under

occupation,
was charged with the; task of 'col¬
lating Hhese ^categories through
thein functional divisions, such as
Economics; Legal, Civil, Affairs,
and Finance. It is

the basis of

the latter Division's recommenda¬

tions! that the' bankers .were ar¬

legal

persons or

their

that this- action is directed.

owners

Civilian internment camps, in the

and

interned.

•

Naturally, divergences in. opin¬
ion

to who

was

not

prima facie suspect of participa¬
tion in

war

crimes

were

reflected

in these lists.

Thus, while

ber of the SA

was

a mem¬
not liable to au¬

tomatic arrest below the rank of
Lt. Col. Party officials were listed

war.

How¬

their business methods,were
way similar.*
: I;;: h
;
-

to the Germans for administration,
The Dresdner Bank, before the
including the operation of Screen¬ great depression, had; been the
ing Boards which accept find scru¬ second largest German bank,. sur¬

individual merit

appli¬ passed in terms of Total Assets,
Deposits, and Capital and Reserves

cations for release. In this manner,
a substantial part of these
intern¬
ees

have been released from in¬

ternment

and

have

been; dealt

with by regular German civilian
Denazification1 Boards^ including
-

rested

assets at the end of the
ever,

meantime, have been turned back in

tinize

case

complicity in

notably
wonders

one

against them, as
a question of
crimes.

war

Other¬

wise, it is difficult to reconcile
this policy with the incomprehen¬
sible degree of leniency shown so

Austria;

agreement

banks, travelled all over Europe
to acquire enterprises and fortunes
in occupied and conquered coun¬

tries, and who not only have not
been prosecuted in any way
(leave
alone
being
classified
as
war

criminals), but who

Reich, Party and Army officials.
However, ■ persons suspected of
participation of war crimes are not
eligible to apply for release, so
that the bankers, i together with
the Gestapo and the SS, are still
(with certain minor exceptions)
prisoners. It r is > this association
with Gestapo henchmen and con¬
;

only by, the Deutsche Bank

and

Disconto-

Gesellschaft, which had
attained leadership as a result*of
the merger of two large and four
relatively smaller banks in 1929.
Because of top-heavy long-term
commitments, the Dresdner Bank
particularly adversely
af¬
fected by the Bank crisis in 1930
and found it necessary to appeal
to the government for extensive
support. This was granted, but the
government, as a result, became
the majority stockholder and was
dominant in.the
bank's; affairs
was

the local money
a

large

was

tral

dustrial
and

clientele

business

brought to trial, in many cases
charges against them will con¬

sist of nothing more than their
participation, as bankers, in the

financing of the
chase
and

sbpiild be classified

which

through

war

government
extension

pur¬

securities
armament

states engaged in; and will, there¬
fore, amount to nothing more nor
less than to punish an
arbitrarily

some¬

the

credits. Any conviction based on
these charges will be punishment
for the same acts which
patriotic
bankers in most of the victor

cultivated,

where*,jmlfway between

the

the select in¬

countries.

It should be realized that, if and
when these bankers,
after two
year's
internment
are
finally,
.

market, but had

private

important

largely

are

still free to enjoy their
loot, much
of which remains beyond the reach
of the Allied Authorities in neu¬

of the

Nazi

planned,- is purely

case

ithat

severe

whether the

■

Institutes.

the

hardly be saidt
class, were any

businessmen. Nevertheless, action

in the

toward

can

as a

against them has been

attitude

above,

great deal of
the
individual

exception

Wilhelm

war

compares favor¬
Military Govern¬ licited
ably with the tactics used by many
far to the businessmen who, with
being ,the Party. Amo n g its'» assets, the other German banks in
Austria
or
without
the
Deutschen Arbeit, of¬ Volkswagen (people's car) factory after 1938.
cooperation
of
;

Kaiser

secure

prominent in the nefarious
activities of that state than other

industrialists, and bankers. In the ficial Bank of the German Labor and the enterprises ; of the con¬
) Until
long after outbreak of the
case
of Government, Army and Front. This bank
as well as the sumers' cooperatives deviously ac¬
war, the bank's credit policy re¬
Party, rank was generally the de¬ Air
Ministry's'; Bank and
the quired in 1933 loomed large.
mained
an
extremely guarded
termining criterion for inclusion Reichskreditgesellschaft are to be
; These three, then, were clearly
one with
respect to all armament
on these lists; furthermore, almost
liquidated at some future date semi-public institutions, with the
financing.
Despite
all members who served in posi¬ however. So far as
government
they were not Reichsbank
(although privately
guarantees,, the bank refused to
tions of responsibility with certain closed
by the Russians in the owned) under the direct control
extend itself by way of amounts
named
organizations were like¬ Eastern zone and Berlin, most of of ; the | Finance
Ministry,
the or maturities it deemed
undesir¬
wise subject to automatic arrest, the
"Big Six" banks are thus still Reichs •; kreditgesellschaft
offi¬ able. It
was
partly as a result of
such as the Gestapo, and the In¬
doing business; those whose Ber¬ cially administering Reich inter¬ these
policies that the government
telligence Services of the Armed lin head offices were closed, are ests, and the Bank der Deutschen
was
forced to»organize its own
Forces and of the SS,
still operating their different Arbeit owned by and representing
credit agencies in order to
supply
the Nazi labor front
branches
in the western
zones.
.*'
the funds
Groups Listed for Arrest
necessary for rearma¬
The
central
Mortgage, Savings,
The other half of the "Big Six" ment' which
was
contrary to its
■ivProfessionals and scientists and Cooperative Banks were all were
privately owned, commercial own desires.
<
,
were included, so far as they were
,
|V
^ r,
located in Berlin and thus closed banks. As
customary in Germany,
The last of the so-called
not arrestable
on
the
basis of
"Big
by
the
Russians.
The 4 private they combined commercial and
'.civil service ratings, in connection banks
are.
generally still oper¬ investment banking, including the Six," the Berliner Handelsgesellwith their work on behalf of the
schaft, falls into a category quite
ating, although their partnership underwriting ; and. wholesaling
different from the first five, in¬
war effort; where entire institu¬
funds, in many cases, are tied up (and sometimes retailing) of se¬
asmuch as it is not a
tions^were known to; have been under
large com¬
"property control."
curities issues. The Deutsche Bank
mercial bank at all.
It always
engaged primarily in armament
It is thus against the bankers as and the Dresdner Bank were the
ranked among the large Berlin
research work, its executive mem¬
individuals, rather than against two largest of these, both having banks because of its
bers were usually listed, collect¬
position in
in excess of 10 billion Mark total
the banks as
ively such

corre¬

rangements to be made in

nature

of
determined by the

was

state; and it
that bankers,

spondent, the Kreditanstalt-Bankverein, Vienna, concerning the ar¬
an

the

evident, from the

there

bank's

a
likelihood, the
gentlemen's agree¬

made *a

that

became

bank

any

their

Action
Has
Discrimi¬
nated Against Banker Profession

annexation

was

of
of

remained

Punitive

bank
financing long before the outbreak
of the war; did little to attract management and policies. Its pro¬
nounced reticence to
participate in
private business;; after 1933, and
was
staffed largely by incompe¬ araynization of businesses despite
the monetary gain involved con¬
tent Nazi officials, who
mostly had centrated
Party disfavor on the
less to do with its policies than
Bank.
the

same

customer's ability
orders.

least

and

any

free
most

the

that

fell upon a
ing and public utility enterprises
that had come into public owner¬ figure head, the former personnel
manager of the aryanized Aufhauship after the last war. It was in
ser bank in Munich
who remained
the forefront of much rearmament

without

Since

Deutsche

Party member of its Board;
the

completely

taint.

business

one

selected group of Germans for the
that their country lost the

fact

com¬

mercial and a private bapk, with war—a dubious
approach to the;
total assets .not much*
larger than; question of re-educating Germany
those shpwn by the average
large as a whole, to democratic
thought,

privatef-banking house. Because
of itsetpld-established ■
reputation,
considerable

pressure was

exerted

bring it into the fold ofgovb
or
Party Control;" but
vigorous opposition i on th^ part

Paris Named Vice-Pres,

ernment

those

control

was

Atlanta Reserve Bank

always, kept

such influences out of the firm
as

possible.

Certainly,
pointed

in its policies such influences did
not figure at all; a course which

repeatedly led to attack?
bank in the Nazi press.

processes. ;

much

;

and

r,;

•

Paris,
a

was

recently

Vice-President

ap¬

the

Federal Reserve Bank of Atlanta,

the

on
>

redesignated

New

Orleans

head

Branch

the

the
At¬

This, then, is the picture regard¬
ing the "Big Six" whose officials lanta Reserve Bank. He has been
resented, by the bankers as even before Hitler's rise to power. were
blacklisted;
three
few
really managing director of the branch
top
ranking
industrialists well qs by many German and non- A great many of its officials were
were public or semi-public insti¬
bank since 1941, according to the
were included, the bankers con¬
German civilians, much more than members of the Nazi Party before
tutions; and two of the other New
nected with the institutions named the
mere fact of their internment.
Orleans "Times Picayune", of
1933; and when the change came, three
were
aS' free of Nazi
in¬
above were listed summarily in¬
threw the bank's full support be¬
Dec. 20, which also said; ;
fluence
as
cluding
all
members , of their Charges Only Partially Applicable hind the new regime. The bank's
ahy German bank
Board of Directors, and executives 1
W. S. Johnson, Executive ViceActually, it must be stated quite Chairman, Carl Goetz, became could be under|' the totalitarian
down to Vice-Presidents in charge
openly, only a part of the charges one of the trusted financial ad¬ controls set up by the Third President of the First National
of personnel and public relations
are applicable to a
part of those visors of Party and Reich and put Reich.
Bank of McComb City, Miss., and
Savings
and
Mortgage
arrested. This will become quite the bank's
Picking the Banks
facilities, both foreign banks, of course, by definition John Legier, President of the Na¬
dowri to ranks of Ward captains;
while
only
comparatively

and

centration camp guards which has

been

The

primary factors in deciding

which of the banks were consid¬
ered

these

categories

were

closeness of affiliation with Reich

and/or Party,

and with industry

and the war effort. As
was

long as it

known that Reich, Party, and

evident

upon

examination

their prewar and wartime records.

begin

with,

the

Reichsbank,

(the German central bank, its, of¬
ficials

were

camparable

class not quite

that

the

;

com¬

mercial banks. The political

con¬

and
the

domestic,

at the disposal of

Nazi leaders. Dr. Meyer,

of the bank's

held

one

Vice-Presidents who

GeneraPs

rank

the

could contribute very little to the

tional American Bank in New Or¬

financing of

leans,

any

obnoxious activi¬

Federal Reserve Bank of

financing the German

effort

their purchase of Reich bonds and

promoting the latter's policies

industrialists.

There

reappointed directors

of the New Orleans branch of the

tion in

among

were

ties.} The extent of their participa¬

Elite Guard, was extremely active

measured

notes, the

war

terms

ex-Jewish

industrial

gave in to

pressure

ambitious ones,
banks-

1938

until

finally

to their attitudes. While

those

remain

picture indeed
the

not

was

{of the

1933, hewed fairly close to the
Party Line and did their share
of looting in the
occupied countries, many others were able to

Record of the Deutsche Bank

presented, by

were

which had been "aryanized" after

Bank. It

only have meant im¬

closing of these institu¬

notably

not

widely

been

A very different

ments. Refusal to take up the
preallocated amounts of War Loan

The private banks, which

have revealed the close coopera¬
tion
by
Gestapo
and
the
SS

the Executive level below the top
consisted to the greatest part of

com¬

becoming less and less important
in the war-time
economy, differed

countries; documents
by American investigators

market

tions but also prompt internment
of the entire
management.

Sicherheitsdienst (Secret political
the top level of the Reichsbank police) which ;the;; bank enjoyed
as a reward for itis
were appointments of a
services.
political
••in, !■"
nature (as in the case of Funk);
The
have

them in

mediate"

tion of these

found

open

pletely drained of private invest¬

would

percentage of them be¬ warfare against countries selected
longed to the Party. On the other as future targets for attack by the
hand, there are among those in¬ Army. After outbreak of the war,
terned, non-Party members whose it was quick td set up subsidiaries
functions
centered
around
Re¬ in Poland, Holland, Belgium, and
search, internal money-market op¬ France, all of which participated
in the organized economic
erations,
and
credit
regulation
spolia¬

falling within that cat¬ the more important private banks,
egory through Army, Intelligence including several banks formerly
agencies following the troops into owned by Jews; the Berlin cen¬
'Germany. Lists of so-called "auto¬ tral banks of the Association of.
matic" arrest cases were drawn German Savings Banks and of the
up
for this purpose describing Association of the various German
rank, title, or position (not indi¬ Credit Cooperatives; two of the
vidual names) of those to be ar¬ more important German central
rested. While the majority of these (as compared to regional) mort¬
categories were concerned with gage banks; and the Bank der
the Government and Armed deutsched Luftfahrt, the semi-of¬
Forces, the Nazi Party, with its ficial bank of the Air Military.
military and semi-military forma¬
It should be noted that, with one
sidered

victions

record at¬

testing to the aggressive part the
bank played in the
"aryanization"

despoliation of occupied territor¬
ies, with the abduction and em¬
ployment of slave labor, and with
the forced labor of political and
racial
persecutees,
it
appeared
logical to include in the list of of¬
fenders all organizations whose
partnership in such enterprises
seemed likely. However, two spe¬

then

necessary to make arrangements
for the apprehension of those con¬

guilty of

were

in connection with the looting and

was

announced

They

will

Atlanta,

Dec. 19.

serve

only legal investment terms beginning Jan. 1

three-year
,

compared with declines of 38%
and
36%, respectively /for the

labor Turmoil Ahead:

5^s,
recent hopes

unsecured

4s <and

General

Conversely, on more
of liberalization of its reorganiza¬
tion plan

the unsecured Rock Is¬
better than the

"Now What to Do?"
(Continued from first page)

land 4V2S held up

senior General 4s.

readjustment not only of industry

1946 has been one of

The year

^ /'Awkward Situation" with which

On the whole, the new crop of
time basis but also of security prices to a more
realistic appraisal of the status of, and prospects for, individual situ¬ Income bonds gave a pretty sorry
account of themselves. As a group
ations. As to whether or not the general decline in security prices
rebounded fairly
during the second half of 1946 was warranted on the basis of the they have
earnings outlook is a moot question, which only the passage of time sharply from the extreme lows of
1946 but even at that there are
will answer. There are certainly^
few that for the year as a whole
cogent, arguments to support the 31, 1945 and the closing week of
contention that the overall pes¬ 1946. Taking a list of 47 common gave as satisfactory a performance
as the investment
grade common
simism has been carried too far stocks and speculative preferred
stocks listed on the New York stocks. Quite a number, including
and will have to be corrected just
Baltimore & Ohio 4%s; Chicago
Stock Exchange during that pe¬
as the too enthusiastic speculative
riod the declines ranged all the & Eastern Illinois; Chicago Great
excesses had to be corrected. The
Western; St. Paul "B"s, and Spo
main significance of the 1946 price way from 3% for Kansas City
Line 4s entered the final week of
movements, however, is
to be Southern to 58% for St. Paul com¬
the year 30% to 40% below, the
mon.
In passing it is interesting
found not in the general down¬
1945 closing levels.
Once again it
trend but in the varying response to note that both of these stocks
are
in the non-dividend paying has been demonstrated that it -is
of individual issues to the change
class.
:;v;
y impossible to look upon railroad
of seniment.
securities as a single group/ In¬
Of the 47 stocks studied only
It is
axiomatic that when, a
vestment programs must be built
12 did better than the Dow-Jones
speculative bubble bursts the best
averages.
The two Pocahontas up on evaluation of individual
as well as the
poorest securities
situations rather, than on brpad
suffer. As a general rule, however, roads, Chesapeake & Ohio and
Norfolk & Western, were close generalities.
the better situated issues do dis¬
behind
Kansas ? City
Southern,
play some greater resistance. to
the selling wave and when the while the third, Virginian,. / was Redeem Cuba 5%

Perhaps the question mark in
the title of this article has been
miplaced. i Or,
perhaps,
there

the

most

affected stocks, as were

adversely
Baltimore

will

ginia;
Lackawanna;, New/; York
Central; Gulf, Mobile & Ohio and

Lehigh

Valley.

thfs group ran

Consolidated

J
Corp,

Dearborn

^1.948;^''.

The declines in
from 41% to 58%

fabricated houses for Vets, in

the UMWA
opinion, they will

not, and the recent promulgation
"Nathan estimates" by the

of the

plete them is borne by the FPRA,
out the University has to do the
grading, put in the plumbing, gnd
eleptric wiring.
There has been
a
great shortage of carpenters,
plumbers,
painters// and other
semi-skilled labor. The carpenters

/ and the suggested - wage
demands; in the;CIO steel unions,

CIO,

in,the automotive, electrical
appl 1 anc es,
aluminum, and

otjier i ndustr i es, lend weight
to
this
o p in i o h// They
are

probably not going to be curbeo
until C ongress itself, as the

had

but in late

words,1 organized, labor will riot
willingly aecrease its power and
prestige, or relinquish any of the
so-called fgains of Labor under
the New Deal" until it is com¬

their wage.

for

about

for

weeks

three

rnqre,

5c an hour'in

increase of

They lost more in net
during that strike than the
will bring them in a

wages

increase

steady employment.
the members of

year or two of
While many

local

the

craft

these

unions

the

strikes of local

workers, and

•

same

Exchange Colombia

In the

roads.

47 stbcks studied there were
senior, equities.
In five cases

list qf
13

getting $1.60 per hdur,
August went on strike

been

duly /elected representatives of
the people, establish the necessary
curbs and corrections.
In other

specula¬ called fof''redemption were still attempts or take the initiative in
stocks did t not af¬ hnredeeMed/^~;
any way, to get behind any move¬
ford any considerably better price
ment which would curtail, in any
protection/than did the common
sense, its present privileged posi¬
of

sin¬

triple, and ; other multiple
housing units, from Indiana, Ne¬
braska, Iowa and other centers.
These must be reassembled or put
together initially in the local cities
of Urbana-Champaign. The costs;
of bringing the houses here qnd
of lumber and supplies to'com- "

gle,

■

x■

Broadly speaking the

stocks

For months past the FPHA has
been
getting
supplies
of
pre¬

-J-

tive, preferred

Universal Match

long delays in getting neces¬
materials, both the contrac¬
under the
FPHA and the

sary

tion.

tors

University

Gold Bonds

anxious to expeas possible

were

dite^mat'ters

much

Will Labor Correct Any of Its]
when operations .were resumed.
/
;•
Own Mistakes? /
/
-J
They not, only / were willing ] to
Sinking/Fund
What about the attitudes of lo¬ give them the $1.65 per hour
Gold Bonds, dated. July 1, 1927,
Western; Erie, and Kansas City
cal unions and local union mem¬
which 'the union demanded ^>ut
Southern) the senior stocks de¬ due Jan. 1, 1961, and dated April bers : toward
"wildcat strikes," were /willing to give them pot
clined more percentagewise than 1, 1928, due Oct./l, 1961, are be¬
and
"intra-union exploitation']?1 time-and-a-half but double time
did the Junior stocks.,
In three ing notified that the time within Despite numerous clauses inserted for all
Saturday work above the
other instances (Qulf, Mobile & which they may exchange their
in union contracts for the purpose
forty hours put in during the first
Ohio; Katy, and Southern) the bonds and appurtenants coupons of
prohibiting or reducing "wild¬ five days of each week.
This
for Republic of Colombia 3% Ex¬
spread in favor of the preferred
cat strikes," there is apparently meant a cash wage of $26.00 per
stocks
was
not too significant. ternal Sinking Fund Dollar Bonds,
no/ remedy
as
long as unions day for every Saturday worked,
due Oct. 1, 1970, under an offer
Holders of

(Baltimore & Ohio; Chicago &
Illinois;. Chicago Great

bia

Eastern

Chicago Railways
Cons. "A" 5s, 1927

•

Intra-Union

Exploitation

Lewis, and

which ;

under .the

are

Housing Admin¬
(FPHA), '
: 1

Examples

magazine recently hinted , they
might, until they see the lay of
the land and get an idea of what
the
new
Congress will propose
and do?;
Or are they -going to
mark - time
until the ? Supreme
Court renders its decision on the
case?

town

Both

Public

istration

Are labor

unions, drunk with power and
privilege, going to "tread softly"
for a
while, as a weekly news

John. L.

small

the

pelled to do so.
What will be the
will be payable
fields are Vets themselves, they
compelling force—public opinion
on
and after Feb.. 1, 1947 at the
as
it
has been aroused in the did not hesitate to strike for £ 5c
office of J. P. Morgan & Co. Inc.,.
hearts of the people, the courts, or increase in pay when some 4,000
New York City, or at the office qf
of their former comrades in arms
•the newly-elected Congress when
Morgan Grenfell &• Co./ Ltd. an it assembles in Jauary and begins were being denied homes by sach
London., On Dec.
19, 1946, the to tackle the issue?
"
,
?
*
Probably all action.,
notice
states,
$36,700 principal three.
But the
intra-union exploita¬
But L do not ..believe that
amount of the bojids previously
tion came in in this way, * Due to
labor itself will make any serious

preferred and the common,
stocks of Pittsburgh & West Vir¬

Arden Farms

Do?"

Federal

The drawn bonds

& Ohio

Common & Preferred

What

—Now

the redemption date.

cease on

life

it is located.

should; be two ..question marks,
namely: "Labor Turmoil Ahead?

among

University of Illinois, where
11,800 veterans and 7,000
to
get an education.
The other, is in
an
Ohio
college where the ac¬
tivities of the college dominate the
some

;

alsq.

the

Misplaced Quection Mark? :
.

l:\

confronted.

non-veteran students are trying

also among those having a per¬
selling is over recover more read-,
Bonds <
formance superior to the aver¬ Gold
iyi- ** * r ' '
ily. The present instance has been
J. >P. Morgan
& Co. Inc.,/'as
no exception.
The price perform¬ ages. Only one road in the East¬
ern
Region did better than the Fiscal Agents, is notifying holders
ance of individual railroad stocks
and bonds during 1946 differed averages and that was Delaware of Republic of Cuba External Debt
& Hudson common. Only Western
5% Gold Bonds of 1914, due Feb.
widely. As measured by the DowJones Average, railroad stocks de¬ Pacific preferred represented the 1,
1940/ that $345,400 principal
clined some 17.5% between Dec. reorganization grotip among; the amount of the bonds have been
stocks performing better than the drawn
by lot for redemption? 6n
averages.
Of the 15 poorest per¬ Feb. 1, 1947, by operation of the
formers, seven were securities of sinking fund, at 102y2% of the.
reorganization carriers. Katy pre¬ principal amount and accrued in¬
Prov. of Alberta
ferred and common stocks were
terest. Interest on the drawn bdnds

1961-1980

now

we are

in general to a peace

3y2s,

1947

Thursday, January 2,

FINANCIAL CHRONICLE

THE COMMERCIAL &

Republic of Colom¬

External

MEMBERS

York

New

Stock

While St. Paul and North Western

and other
Commodity Exchs.

Exchange

leading Security and

better

Broadway, New York 5,N.Yf

120

held

preferreds

appreciably

their

did

than

could hardly be character¬
having .given any degree
of price
stability. During 1946,
the St. Paul preferred
sold off
more than 45% and North West¬

they
111.

So. LaSalle St., Chicago 4,

231

Armstrong Rubber Go;

ized

ern

preferred nearly 35 %.

Bonds

American
•

Optical Co.

in
As

12 WALL STREET

Rio
broke

the junior Denver &
Western

5s,

1955

55% from their final 1945 levels.

Van Tuyl & Abbe
NEW YORK 5

price swings during the year.
an
aftermath of speculative

Grande

■

investment

excesses

Sl/^s

H. H. Robertson Co.

;

grade also showed wide variations

/Talon, Inc. /■ j/r.vjVV//

Missouri Pacific RR.

below. the

contrast,

the

better

secured

Telephone

Teletype

HA 2-6622

NY 1-1499

performances among

representative

defaulted

bonds.

Similarly, Missouri Pacific 1st &
Refunding

dipped

only

16%

Bank

Romania Nationalizes
/

On Dec. 20 the

ing

the best 1946

some
or

passed

Romanian Par¬
bill nationaliz¬

1st

•

Mtg "A" 4s 1993

First Mortgage Bond on

ef¬
1, according to Asso¬

fully the National Bank,

fective Jan.

ciated Press advices from

Bucha¬
in

appearing

rest

Dec.

New

York "Herald

6s,

Request

veloped, whereby local craft un¬
ions of the A. F; or L. have pro¬
hibited some of their own mem¬
bers from taking advantage of the

;

1935

Bonds & Certifs.

—

the

get

week.

Take,

Assented & Unassented

ISLAND AIRLINES

two
or

25 Broad Street

New York 4, N. Y.

Telephone BOwllng Green 9-6400

.•V

i Teletype NY 1-1063

••

:it!, mr:ii:

■

1. h. rothchild & co.
National Association :
of Securities Dealers, Inc.-

Member of

■t

-t

Middle

,■/ HAnover

«treet
2-9072

v,.1V* c»s'

Tele, NY V-1293
r> l

now

i
:i

! Wages,

members

the local

un-

time for

Saturday could not go

on,

unless the general contractors and

the

University would take
members

wanted to

work

the

union

all

who

Saturdays at
The con¬
tractors immediately pointed out
that they could not lay out their

the

$26

work for

carpenters
where

day wage.

per

Saturday

indefinite number of

a given Saturday
might show up on one

150

the union remained

all work

over

the next. But
adamant, and

40 hours per week

had, to be stopped. 1 Many of the
,

laborers

from

Decatur, Danville,

under way in to work on 40-hours per week
university jobs where they could live' at
One is here j qt home, with the result that some

Western

college towns.

V''52

senior

ions, most of whom were employ¬
ed on jobs with local contractors
where they worked 40 hours per
week, began to make strenuous
objections to this program. They
finally ruled by a slim majority;,

pay

'N--,,

.J.-U:

attracting; many/ carpenters and
plumbers from outside communi¬
ties to this construction job, the

for a work¬ Springfield and other centers who
had come here because of the ex¬
:/,;
./ •.,■/./"///...'/■./ ?
tra take-home pay per week, went
for an example, two hous¬ back to their home
communities
same

projects

ing

STOCKS-BONDS

which has

possible during the last sev¬
eral months, due to the general
shortage of labor, unless all of the
members of the local union can

DENVER & SALT LAKE

LONG

been

6s, 1960

GUARANTEED RAILROAD

•

Recently, however, a new form
of intra-union exploitation has de¬

SEABOARD-ALL FLORIDA

Priced to yield better than 6 5/s> %
Analysis

suggested later.

higher take-home pay

many

the

Tribune."

than

trained teachers were

industry.
Some possible
remedies for these conditions will
the

for

Main Line

Properties of Strategic Nature

grievance which is fancied

real they do not

highly
getting! But /
when this had gone on for about *
two months, and had resulted in

much

vote in the union that this double

trading Markets in-

violate their con¬

simply because the unions them¬
selves can not agree as to which
union is the "bargaining; agent'/

DL&W—Lackawanna RR N J
.

can

will, go that when local
unions of a national union haye

tracts at

clined

only 4.3% to mark one of

themselves

let any union
contract commitments . stand in
public has been similarly extend¬ the
way of their going on strike
ed. Copies of these offers may be
when they feel like it.
The same
obtained upon application to The
is true under "jurisdictional dis¬
National City Bank of New York,
putes,"/ There is no valid reason
Corporate Trust Department; 20 whatever why the operators or
Exchange Place, New York 15, owners of an industry, or the gen¬
N. Y. ,■■;/>.,
eral; public,
should
be
made
to suffer losses and inconveniences

4%s, 1936 of the same road de¬

;

1941, has been ex¬
1946 to Dpc.

31, 1947. The period for the ex¬
change of Convertible Certificates
issued under the offer of the Re¬

liament

dated June 5,

tended from Dec. 31,

commons,

Lee, Frederic Edward,
"Rigid
Unionization, and Reconversion

'problems,'* ,in "Commercial and Financial
Chronicle," Jan. 25, 1945, pp. 414-415,
J,

4,000

been

promised

veterans who had

homes,

first

Sept. 15, then by Oct. 1 to 5, then

Volume

Number 4556

165

THE COMMERCIAL & FINANCIAL
CHRONICLE
19

again by Oct. 15 to Nov,\I, and
then "finally- by Nov. 15, were
served notice

would

the last date that

delayed by two months, the con-; should be put into, the
position
tractor reported that -there;
was; where Ithey
may
be
sued
for
only one plumber on the job, and breach of contract
just as manage-

least

five

that it

six

weeks morfe before their "prefabs" (
could be made available;
They,
are
still living in basements, at- I
tics, converted garages, and in
nom-moderri homes in small towns

;

•

the

villages,

had

seniors

■

should

labor's

mo¬

abolished, and
bargaining can

again be possible.3
Should

the heat of unconsidered
argu- , be amended accordingly. In these
ment, my own opinion is that,
for, and in similar steps we may anultimate good of the unions -swer
in/part the question, * "Now
themselves,y such •un-American • What to Do?".
the

} >?

''*/

'-y-jr,':..

Take

Place?.-

.'••Such'

examples
raise the question

•

ions

themselves

and

tenance Survive?

Any: labor leader reading this
article, if any there are,- would

immediately throw it

instances

"Will the

do'

Closed

Self-Improvement

•']~r—'■

infra-union

the

Shop, the
vf"Check-off and Union Main-

; .Will

Usually,' in more normal times,
exploitation„ t a k e s!
place where, with, increasing un-employment in an industry, the,
older members of the
ufqon, due,
to seniority
rights, hold oh to such !
i jobs as are available at rigid wage
scales which they will not allow
to be reduced, while the
younger

are

the
even

question

down when

asked in a
sober and unimpassioned
mood, as
whether the closed

un¬

anything

the

even-

(Continued from page 6)
.undervaluation
; of Sterlini pursued by many Governments^
tends, in existing, circumstances
aiming at the overvaluation oif
;to;
increase
the, British
tradetheir currencies.
the

This movement

deficit..:

y.y'.-v
,
There is in Britain for all

prac¬

shop, the tical purposes
full
employment
check-off and the union main¬
•and nobody would
think of de¬
tenance clause in contracts should
liberately - stimulating exports,
unionism into so much disiepute be continued.
In my own "con¬
with the aid of an
undervaluea
iri thousands of local communities sidered opinion there is
nothing Sterling, for the
sake of creating
and newer members are allowed throughout the nation?" I doubt more un-American or un-demoemployment. Even in the '30s it
iti Certainly not- as long- as mo¬ cratie than this- notorious
trium- was
j to join the unemployed. In many
foolish to sell abroad at un¬
instances of such exploitation of nopolistic unions have so ..much verate of union policy, which to
duly low prices as a result of' the
Union members by their "broth- power as they now exercise over; even question, puts one in the
undervaluation of Sterling, for the
ers," there might be work for all the economic life of their com¬ ranks of "union-busters" at once sake of
creating employment. But
munities. 1 They ' have • not
;yet with all labor leaders, and with now,< under a lower wage
scale, where
when there is no
unemploy¬
the wage did not exceed the mar¬ learned that, drunk- with power: most labor economists who stand
ment available for
export, it is an
ginal productivity of the worker. which they have assumed or have "just a little left of center."
The
unmitigated disadvantage.' r.t
been granted* tMy'tnay,- if they States themselves
But in the ' example
may determine
; above thef
members of the local craft unions have not already, done - so, abuse the closed shop issue unless a Su¬ ;.7 While undervaluation tends -to
& who were able to get this greatly that power to the extent that con¬ preme Court that does not follow raise prices,- overvaluation tends
increased, pay lot a badly needed structive labor legislation may be the election returns rules other¬ to! lower them, owing to the
pos¬
service were not allowed to be¬ set back a score of years or more, wise regarding the amendments to sibility
of
securing 'imports .vat
and even punitive legislation
cause all of the union members
may state constitutions that are now cheap prices.
While in the '30s it
be demanded by an outraged
•"could not get it,
pub-, being passed providing for- the was a n advantage for. Britain to
{ lie. / As British
labor leaders said outlawing of the closed
shop. Why have an undervalued' Sterling in
viVrThe other case In an Ohio col- after the
failure, of the general a free man in a free
economy cany order to avpid a fall of prices^ in
; lege town was somewhat
similar Strike in 1926 and their great loss hbt
the '40s ari
;wprk; Where;
undervalued Sterling
although worked out on a some- in
numbers, "When we had the pleases 1 without a union; interferj means a factor
V what different
making for the ac¬
basis. Their houses power; We: di<T not; have;
the sense ing,-is a question that has
centuation of the
always
rising trend of
came from Willow
Run; Michigan, to use that power wisely.
Now, been unanswerable to an econo¬ British prices.
>
artd were torn down and reassemwith reduced strength,
may we be mist who, like myself, stands a
bled in the college
] The fact that .has done more to¬
community; willing to use such powers as we "lfttle,. possibly more than a
little, wards waking- up British
v Most
of the carpenters, plumbers have
official
wisely, in Prderto bring to the right of center.?'
Why a opinions' to the realities ofy the
and painters were
already em- about greater cooperation between group of idle,
college, men in a changed situation was the
ployed on v: local contracts with
break¬
employers and employees in the college ,; town cannot take
r
up
a
down-of the Anglo-Danish trade
contracting firms for whom they common task of
securing greater saw, or paintbrush, or a piece of
negotiations." The Danish krone is
had been working for
years.
On production of needed goods."2 This pipe, and
help out for a few Weeks overvalued in
; most
such
relation to Sterling.
contracts & they .:; were became
virtually a new objective in ,a;
desperately needed housing As a result, Danish food is far too
working 48 to 54 hours per week, for British -Trade Unionism for
program without union approval,
expensive
for
With time-and-a-half for all
Britain.
As
the
over¬
several- years- afte$
is: again a question that is
beyqnd Government is already
time above a 40-hour week. Their
spending
'fit I'-*
With UAW of the. CIO having meVi,..
\ /
''
V unions
some
v-y
£366,000,000 per annum on
ruled, and the, FPHA con¬ failed to
take a lesson from its v jBritish unions have
worked suc¬ subsidies',to kdep down the cost
tractor who was
of
employed by the tremendous losses
through
the cessfully for nearly a Century, and living,vit is not at all
government
keen on
agreed,
that
the
prolonged strike of a year - ago, some y even for'
V work-week on the;
longer, without spending ^ additional millions by
college-housing with the consequent * setback to eVer a
-mention oLa check-off or a buying Danish
v
program should be limited to a
bacon and butter
the reconversion program and the union
maintenance clause in their and
selling it to the British con¬
;; 40-hour week in comparison with
pricing of new automobiles^ out contracts. My- own
;; the 48-houp week/
feeling re-5 sumers at a big loss.; The Danish
being allowed of the' reach of
those who make gard-ing. the
check-off>. system Government, on the other
for union members
working in them,' We find them' now
hand,
coming whereby the employers must^^ de- was not prepared to
private industry.; As a matter of
subsidize
forward with the demand; for an¬ duct
union dues from the laborer's Danish exports to
: fact, the Administration
in Wash- other
Britain, y seeing
23
per hour increase in payv check' to make Sure
.7 tington
thot he that, other countries were
insisted that ; the .,workonly too
correct such -abuses which, among
other things, have brought' trade

appears

v.-

be as widespread "as
opposite movement, the
currency depreciation race, aim¬
ing at undervaluation, after 1931.

the

was

Fashions in monetary policy

•

T'-

„

again they use the
same argument of a
year ago, as
promulgated by dyed-in-the-wool

yvith the. housing

project.,;Work

;other

jobs .to-the

Federal pro¬
gram.
i i As
September approached with
little done on the houses the re¬

tiring
sent

•

200
on

the

out personal letters
or

Vets

who

the campus for

one

prices!

College

<io

by all

of the two

About 150 of

responded, only to find that

...

through1 the
program

up a

paint brush until they
paid the required entrance fee to
the unions and agreed -to- the
on-

their weekly or
daily
none of them

wages. ; Virtually
would joip the

unions, hence they

paid board for two
while
,

ter

the fall Semes-;
unable to lend any

Help in the face of tile acute man¬
power shortage. By mid-Novem¬
ber

when

the

sort

with

ago,

! With

how

the

before

"Awkward Situation"
uS,! primitive man's

question of
is

V.V\',

"Now

What

Do?"

paramount importance.
A
revived and revised Case Bill with

constructive rather than definite¬

punitive

measures«

included,

may be one answer.
Certainly la¬
bor's monopoly powers mustbe

curbed,
duties

and
in

unions"

connection

tracts should be the

rights

•

with

same

and

con¬

those

imposed;

ration

on; < management.: The
should be held - to strict

through

incorpo¬

otherwise, both to their

houses

had

been

contracts, where if a man joins the
union to gej; or.juaipfain his
job.
ih an industry, the
employer: must
^ge .to it that he keeps up his
union membership as long as he
"works for that, firm or industry,
and that if he chooses to leave the

union

,t|ie

rpnst he discharged-by

employer.

While the analogy

exchanges,

Tjirough

they take in and
they

make.

incorporation ;they

Who secures

dominated

being

college

teacher

job in aipolitically-

state

university while

thor,

the

60th

presence

Jubilee

fhis

Trades

au¬

Union

Congress in Swansea, Wales, in September,
1928.

'•

•:•".

the

limited

quantities of exportable food and
material

raw

surpluses the

ducing countries
of

Denmark

too

The

possess,-

case

respect.
keen

pro¬

characteristic in
Much-needed food-

are

only

.selling to their tra¬

ditional British
markets, have to
be allowed to go to other
coun¬

Democrat, a Congrega¬ tries, not because they are in a
tionalism and a Mason,> to forfeit financially stronger position than
his

job

become

and
a

tenure

Britain

Republican

should
a

Cath¬

when the

Army

cause

far

from

the

it!

—

technical

but

be¬

position

caused

by the overvaluation of
exchanges in relation to the
pound.
V:

olic!

took

Last year
over

some

minister in

referred
"that old

the

plants of

and Company,

large congregation
Sewell

Avery

PQi^ fuller list of recent proposals for
ne:w .legislation, see "pommercial and Pinancial

Chronicle"
for' Dec.' 5,
1946, p.
2939;. where Senator, Alexander Wiley,, of
Wisconsin, sets- forth his views in a 10-

point

their

It seems that
Sterling is at pres¬
ent undervalued in relation to the

large majority of currencies. Al¬
though it: would require a very

fossil," because he would thorough investigation

Government/ in' the

not require union maintenance in
,2 Pafaphtased from a statenwpf made
by James Thomas, former .Lord Privy Seal
under
Ramsey
MacjDonald's first1 Labor

for

this

Requiring

payment

scramble

Stuffs, which the Danes

■

Montgomery Ward

every

wide

is jiot perfect, this is something

members and the public for
every

for

This brings us to a
grave dis¬
advantage of. the overvaluation of
Sterling in existing circumstances.
It handicaps- Britain' in
th© world

cent of revenues

three weeks

waiting for
open,

same

-year

"Now.What to Do??

accountability,

pipe, pick

unions

checkoff

other continental countries to out¬
bid Britain is that their

ing under the closed shop. They
Hammer

are

feet.

they reached the college
town all unions there Were
workcould not: carry a

own

such evident results' In. thO cost- of
living and the nation's economy.-?

when

their

too, are grossly overvalued in re¬
oncer With" similar or: pUlsion of the
check-off, then the lation to the pound. Their internal
higher demands by Phil Murray's union should
go down or be com¬ prices, were well abovo interna¬
CIO <United Steel
Workefs; .the pelled to, change its* ways < and tional parities, if
compared on the
CIO United Electrical
/Workers,- practices to the extent that la- ,basis of the
official, exchange
and later by
petroleum, chemical, bbrers want to belong to it and to rates. For this
reason, the Danish
leather, packinghouse, lumber and continue their
prices which appeared too dear to
membership. *
railroad workers, to mention
only l; The same is
true, in general, for Britain, appeared cheap to these
a few AFL'and CIO un
ieris^ who
the ."union maintenance clause in countries. ,y '.u;, ?
1'
went
almost

been

plumber's helper, to
means.

the

members of the union do
not want to pay* dues to- it of their
oWn volition and without the com-

increase.-in

to- be followed

are

strike

about, the first week in
September
and if any of them could
handle a
hammer and saw, a paint brush
a

further

They

some

• needed at; least
75,
and painters, were not to
be found.
He called upon themr to return

become

plumbers and

them
\

Withoutany

that

economists, that such an
irh wages;: £ah be miade

had

they needed about 300 car¬
penters and helpers and- had less
.than 50. ? They had: about five

they

afraid to stand

increase

willing to pay the* high prides at
which Britain refused to
buy. The
explanation of the willingness and
ability of
France, Polanqt ? and

■

preceding semesters and who expected to return. \ He told them

■,

President

such dues, is that this is a
strong indication of the weakness
of the unions where
pays

New Deal

V. carpenters would leave their 48hour per week jobs to take work
Was delayed for. sis; weeks before
a
sufficient number of laborers
could be induced to switch from

And

wages.

week on this job must not exceed
40= hours. : Therefore, when the
fiouses were ready for reassembly
hear the college
campus.no local

program.

tain

tlie" exact"

position,

international disequilibrium.
tions

are

endeavoring

for

of the
this
seems

seems

td be at present

cheapest
purely
to

countries.

the

one

Nor is

accidental.
There
a
deliberate policy

;

secure

themselves advantages at the
expeiise of other nations by causing their currencies to be over-

valued,

maintaining them

overvalued
the

'30s

level,

just

induced

arc

during
monetary

them

predate, their currencies
secure their

shortsighted

nationalism

Na¬

•
■

de-

and

undervaluation.

to
" '

It was
precisely to fight against
such tendencies that
the Interna¬
tional Monetary Fund was

brought

into existence,
with

and

endowed

super-na-

[

was

-unprecedented

tional powers in order to
be able
to - resist
monetary nationalism

leading 4o international disequi¬
librium.
taken

The first major decision

the Fund, confirming*
time being at
any rate,
the overvalued
parities, appears to

for

the

indicate, however, that instead
making

of its powers for

use

con¬

structive purposes, the Fund
pre¬
fers to take the line of
the least

resistance.
In justice td

them,

mit that,

pressure

to take

we must ad¬

far as is known
here,
they have not been subject on the
part of Britain to any considerable
against

firm stand

the

policy of deliberate
overvaluation of currencies. - The 4
disadvantages of an undervalued
currency are only just'
beginning
to be realized in London.
Prac-

tlly
about
or

nothing

has

this subject

been

said

Parliament

in. the press. It is far too techalto: be understandable to the

average member of the
public, or
to the average politician. Sa
the Fund yielded to
pressure in
favor "of accepting the declared
even

parities,

in the absence of ade¬
quate pressure to the contrary..

Admittedly, the Fund
bark

effort to

will

em¬

re-examine

the parities it accepted, and to
try
to persuade the Governments con¬
cerned to change
them.
In
any

Case, the overvaluation of parities
will lead, ill the case of the weak

countries, to

speedy exhaustion

of their facilities with the Fund.
Then the Governments
concerned

all conceivably be allowed
persuaded to correct the

may
to

overvaluation of their currencies.
by then the situation will

But

have changed once more.
By then
the world will have turned into a

buyers' market, calling for under-

;

valuation rather than overvaluation in order to improve the trade

balance, to keep down unemploy-

ment

and

resist

the

trend in prices—just as in the '30s.
Thus
the

Britain, having to face

disadvantages

now

under¬

valued currency, will not be able
to enjoy

its advantages

two hence, because by

body

will

want

their currencies.

Lee

year!or

then

every¬

undervalue

ttuey Opens in Omaha

OMAHA, NEB.—Lee A. Huey
Company has been formed with
offices
in the
Omaha National

Building.
Mr. Huey vtes
previously with Central Securities
Bank

Co.

;

declining '

ascer¬

on'

basi& of the relative
change of in¬
dex'numbers of prices and costs,

Britqin

are

evidently apt to change. There is
one thing common to
both trends
in policy: they both tend
to create

;

those in-

even

•' V,
'
V;:? j
Other Types of Exploitation
;
'

■*v

that

that real collective

by' their
unwilling to over¬

difficulties
even
in
provide " badly, needed
housing for hundreds of their fel¬
low ex-servicemen. :
order

attitude of the local craft unions.
-V P.

overruled

or were

amended

'such

come

"dog-in-the-manger"
*

Act,
and
Act

practices and attitudes

(volved in the closed shop, the
usurping the functions check-off, and union
maintenance
of management.
| provisions should not survive, and
Not in rancour,
therefore, nor in that our labor legislation should
firm,

The Wag-

are.

Relations

nopoly powers

either

were

the

had it not j

now

ment corporations
ner-y Labor

that many of the local tin ion mem-' be
bers were Vets' themselves
and

they -might

homes:near

University before

V been for the
■

where

their

recently that
shortage- had been

carpenter

partially met by importing 28 men Smith-Connolly Act,
from Mississippi/'. Bear in mind the
Norfis-LaGuardia

and'

/have

not until-

was

CIO union that wanted to dominate all of the activities -of the
a

'•

,'>»>

v.:

jt H

i*",

;■

•

.,'>t• j-,r'Vt. j

•

Total

i-vv

Outlook jfor

1947

? v-

artbther year of substantial growth in
1947 for investment companies.
\
J. -

and sales in

assets

invest¬

which indicate increased demand for

Among the factors

;

coming year are the following: •
'r,'l
1. The increased selectivity ip security markets, causing the in¬
experienced individual investor to be confused by the backing] and
shares during the

ment company

<S>filling of markets.

'rfrl-

longer

the

can

vr,

;;

asset

has

been

achieved.

American

industrials

(Continqed from page 5)

individual to

for

matter

bull market which ended
autumn, because practically
equities were appreciating in,
value. Now, however, the experi¬
enced
professional
management
offered by investment companies,
with
their
able
research
staffs
year

and seasoned

judgment, will be of

greater appeal to individual
investors
by relieving them of
evert

the worry and

problems of invest-;

strode

of funds available to
particular need.
-

type
the
on request

prospectus

from your investment

; For

deaier .or

63 Wall

defensive

purposes,

meet
'
as

on
the security .markets,
specialty funds, affording di¬
versification in bonds or stocks or

hedge

Distributors Group, Incorporated

the

Street, New York 5, N, Y,

particular industries, and the
their varying

balanced funds, with

proportions'!of defensive and ag¬
gressive securities, will undoubt¬
edly continue to have consider¬
able investor' appeal.-'
J;' - y

Prospectus upon request from y
your investment dealer, or from -11/

SECURITIES

NATIONAL

CORPORATION

RESEARCH

120 broadway.

Republican

That1

'members ' who

irks

Halleck

for

leader

but

Dewey for President:
sult—more

around."

recent

hard

avail¬

discounts

dealers in

new york 5, n. y.

selling invest¬

will

efficient

maintained

■■■

'■

■t

ketability for investment company

same

Owned

Affiliated

able;

10, 1946 now avail-? ^Affiliated

%*:;!

■

sored

Dividends

Fund—NeW prospec¬

tus dated Dec.

The

Fund

—

Quarterly

plodding
to an inevitable
scrimmage with the realism of
competitive
economy.
In some
cases, at least, the Department is
tending, to prevent price cuts by
frowning on big business expan¬

are

declared, payable Jan. 20, 1947 to
of record Jan., :10,-; 1947.

holders

Total dividends

paid in 1946 were

per share '($0,133 regular
and 75c optional in cash or stock).

Business $0,883

Better

status

Federal

outlines

dividends

all

sion. Vv Ultimately

Shares-

Business

American

paid in

■.7,7177

Investment

24c

share;

per

record

—

total

1946,; bringing

Dec.'] 14,

194&

dividends to 42c

His resignation

wouldn't be sur-

prising-^r shocking.,
^,1
,1 *
*
* ,r..
^ Liquid individual savings

the December dividend

share fof

; ■: •■■■: ;■;

In the drafting of labor legisla¬
tion he will be largely ignored. :

per

17c : per

Approximately

share.

^7;v.

Schwellenbach
grows
increasingly un¬
happy.
Ardent wearer of the f
New Deal crown, he has lost ;
favor in Truman's White House.

was

paid Dec. 24, 1946, to holders

represented" distribution

Lord, SVbbett & Go.

Investment Dealer or

your

oer'o'-'ATfO

Chicago

New York

• *

—

■f; Investors Mutual

Los Angelas

—

CHICAGO

record Dec. 31, 1946.

to holders of

shares of capital

stock of

current

payable Jan. 21, 1947

fiscal year,

do not necessarily

article

time

expressed in this

views

[The

with

coincide

They are

Chronicle.

those of the author
.-rv:

at any

athwart
the
nation,
spending is rising, Those are the
economic puzzle-pieces collected
by government economists.
On
how they fit together, for either
immediate or long-term future,
there's no agreement. • The crystal
ball boys are perplexed. ; :
•
V

thd&^of the
presented as

only.]

;

Commercial Company is
microscope and will
be found by some industries to
threaten an epidemic of Fed¬
eral competition. An instrument
of the government, the company
U. S.

under the

REPUBLIC

} U

X imports materials received by
*

the

from

your

may

be obtained

Prospectus

;

local investment dealer or

■

/.•

Keystone Company
of Boston
'

50 Congress

.1-

;

•;

;

Street, Boston 9, Mass.

■ty-I:r-v ;•

THE

local investment dealer, or

•••'»••

PARKER

Sept
been
tions.

1932

-w

)

ii )v

I CORPORATION

regular trade
of

Direct

/j vj]

;

■.'<

■

)

liiit-

BOSTON 8, MASS.
:

liii

.1:1

MANAGEMENT C0.,INC.
.a-

Distributors

;(!15 William SL, New

v->..

1,.

Tax
even

revision
more

•••.:, t

muddle

muddled.

«•

■'

.7;

■■

becomes
You can

only one certainty—
some
individual income tax cut
will be voted.
But discount talk
mark

k 5

are

;

;71;

r;:f.

competition

unless such deals

curtailed.
t

v -

•

ilUfi

ONE COURT STREET;

reciprocal aid,
To the last

e m b e r, $200,000,000 had
collected by such opera¬

foreseen

be obtained from
t

•

your

The

may

S. under

channels here.

FUND Inc.
Founded

Prospectus

sells them through

INVESTORS

are

borrowing is

lowest in six years,

share has been declared as

12c per

Dividend of booming

first quarterly dividend of

WAIL STREET. NEW YORK 5. N.Y.
.

net

profits on sale of securities..

INCORPORATED

HUGH W. LONG & CO.

will

Secretary

Labor

Commonwealth

consumers

to; this fact, will want aa
accounting.;

wise up

tax

1946.

Dividend

trust busters

Justice Department

dividend of 4c per share has been

Bulletin

">l

ANonrs

Distributors Group—NbW! dis¬
panies','arid their constant supply
of selling aids, ideas and informal tributing copies of booklet",'^Safe-;
tiori. Then; too, the assured mar¬ guarding YoUr Savings," spon-j

iot,

all

•••

of great assistance
distribution systems
by " investment com¬

find

ers

the

re¬

feelings

remunerative dealers terms. Deal¬

Prospectus from

dislike

The

%
y

the

l V]
:AV|}Af-'•:t •>5-1lyiposition' > as if; they 'directly
Union Funds ^ Reviews dated !;Wt; .-'i/Kyi
the 1 underlying securities,
.Look for a revival of the New
Nov. 30, 1946 are now available on
ment company shares.
Deal-public utility feud when
^ y ' :
*■ but with the added' advantages of all
series—UBA, UBB, UBC, UPS
experienced management and di*
Southwestern Power Ad¬
Dealers who face the problem
atnd UCS, outlining Federal tax fthe
versification. ' The very fact that
ministration begs Congress for ;;:
status of
all dividends paid in
of what to sell in i.947 may well
Congress passed this special tax
$8,000,000 in the coming fiscal
look into the matter of increas¬
1946; six-year dividend record,
legislation fof the benefit of in¬
■year. REA and co-ops will back:
list of holdings, and six-year high
ing their promotion of investment
vestment companies indicates the
the plea.
Power companies in
and low range of offering price.
company shares, first because of
the affected area will demand a
high regard generally held for in¬
their outstanding advantages for
Special study: prepared by man¬
vestment companies and for the
'.curb on this paternalism, will
individual investors and special
agement company also available
warn of surplus lines and steam
service they provide for investors;
on
advantages for other types of in¬
portfolio of Union < Preferred
plants and resultant waste of
vestors, and also because of the
Stock Fund.,
v;
j.;. y
News and - Views
:
'. ■
taxpayers' funds.

3. Attractive

able

1®

into

leadership scramble by tagging
Indiana's
Representative
Halleek as his personal candidate.

>•">

ing in selective markets.. ;
:
2. The wide, range in choice of

;

Dewey wasn's smart when he

the passage

all

assets

1946 totaled $95,604,663.
value was $12.84 per

20,

Net

greatest

last

Group Securities, snc.

Mutual— Net

Investors
Dec.

Looking

"pick 'em" during the long four-

men¬

tions investment companies,

backward, perhaps the low were 57% below the 1929
One exception to the legislation^
impetus to growth was peak. V'
■;
;
as-usual routine may be a bill
of beneficial tax legis¬
National Securities & Research
dealing with portal-to-portal pay.
lation beginning in 1936. Prior to —Latest
edition
of -"Investment It wouldn't be
startling if Con¬
that
year,
open-end investment Timing" is devoted to compre¬
gress did speed that one to the
companies were subject to taxes hensive "1947 Outlook for busi¬
President.
/
1
on
security profits at full corpo¬ ness and Securities." Conclusion
rate tax rates, so that shareholders of this
study: that after business
Certain to be continued is the
receiving dividends frbm these readjustment in early months of
special Senate
Committee on
profits were subject to full indi¬ 1947, later months of 1947 will
Small Business.
Theme of that
vidual surtax rates in addition to witness
rapid business advance.
group's agenda will be bigger
the taxes already paid by the in-,
New
York
Stock s—Special
and better RFC loans for little:
vestment companies—double tax-i
businessmen. It's a good spring¬
booklets on Metals Series high¬
ation.(
;
v
[ light the favorable earnings out¬
board for headlines,' may proSince' 1936, however, this- situa¬ look for metals shares under price ; duce little' else;; ■;
; v; •
tion has been corrected ; by tax
Y'
777/;7;.< 77; S7
decontrol, and the lower market
jt*
— '7".
>■ ■, v.
j 43 7.
legislation, and today, practically levels at which metals shares are
Withdrawal of certain govern¬
all
companies qualify as- Regu¬ currently available. Similar book¬ ment
privileges from obstreperous
lated Investment Companies.
As lets available on Steel Industry unions will be
seriously pondered,
such, they are taxed only on the Series, pointing to higher current may be sanctioned by Congress.
excess of net income and net cap¬
earnings for steel stocks than in The proposition stems from rea¬
ital gains over dividends paid to
1937, yet lower current markets soning that while legislation mak¬
stockholders, and if such divi¬ for steel shares compared with ing men work might be without
dends paid equal or exceed the 1937.
force/ legislation denying Federal
net income and net capital gains,
L Selected
American
Shares — benefits to men who won't work
the investment companies pay no;
Preliminary reports indicate that might! discourage striking. . Ab¬
tax; whateyer.
f
shareholders elected, to take 60% horred by some; of the legal gen¬
This fax ^ advantage, therefore; or more of the recent capital prof¬ try, it won't be cast aside until
in effect places the shareholders
its distribution in new shares of explored. Like Jehovah, Congress
of investment;companies - in; the
gives and Corigre^s can take waiif.

cockily and confident¬

easy

AVIATION

which

individual

ly rely on his own i but often un¬
seasoned
judgment.
It was,; an

investor

favorably

which

to Bureau,

proximately. J $1V2 billion,
com¬ share as of that date. Sharehold¬
pared with $1.3 billion at the close ers now number more than 47,000.
of; 1945.
Total assets; probably
keystone Custodian F unds —
reached the $1% billion mark as
Latest "Keynotes" calls attention
of the close of 1946, and With the'
to similarity of fluctuation pat¬
demand Continuing, a new record
tern followed by American and
total of $2 billion should be read-j
London industrials during past 17
ily attained by mid-year of 1947. j
years, but '-fact that London in¬
recovered
from
yThis is substantial; progress—i dustrials -have
phenomenal growth, in fact, con¬ 1946 low to levels which are 15%
sidering the relatively few years above - the -1929
peak, ' whereas

WILLIAMS

Indications point to

•

open-end .in¬
companies were esti¬
mid-year 1946 at ap¬

mated

ki:

•

iv;

assets

vestment

By BRUCE

shares wil| continue to appeal
dealers and investors. (alike<, l(

v»ii

Thursday, January 2, 1947

FINANCIAL CHRONICLE
&

THE COMMERCIAL

down

165

Volume

specific formulas

guesswork.;
•

Number 4556

premature

•'

ing pipeline

*A»*

THE COMMERCIAL & FINANCIAL

ner

ft-I, Av

President

Truman

wants

There's

people receiving greatest relief
percentage wise. He would like
see

pledge

20% slash all
board. , Responsible

the

officers have

;•

GOP

good

your

the next fellow's.

Official

reached
will

12,000,000

for

undelivered
Dec. 31.

truck

and

other

tires

and

social

house

•v

% istrative

a New Year resolution
to keep an eye on unhappy Re¬

other

governments

ments

means

cost; and

directors

taining

days.

are

many;

totally, different..

;7 resort to
•7 rate

policy, palliative measures of
relief v/ill usually be essential,
but they should be fitted at the
earliest

expenditure

■7777--777

a more

77 and on the standard'of living
7" -—this being a measure which
7:7 all countries should adopt after

:-w

revision

country must have

government

quate
In the

assured

the

...

7;7 7,

far

but

that

need

than

ever
to devise a really
comprehensive scheme provid:
ing for a proper balance in the
central and local budgets, the.
7
reconstitution of adequate inon7; etary reserves, a sound .relationship in the cost .and price
N

.structure both7'interhaljy and
rJin; relation to, qtber countries;
with sufficient resources avails
\
.able 7oi^ economic development.

war

returned

and

the

acute

disappear'

branch after the
trol

;

should

lifted.

there -also,
should

ment
'

gradual

average

purchasing

the

each

level

power

new

the national currency.

Foreigm payments
'.■7

tion
be

the

foreign deliveries which

tfian

must

volume

since

made without

position

financial

y'.t

■

*>7

(vi)

<0/?•>;

While 'efforts

made to arrive: at
A

•-

are.

• v-

whr

should

ended.

These

gradually

when

they
a

•#>

»■

moment

true equilibrium in the

national
■!

m^tterjin itself 1

delay ;the
accounts

cah: • be

ei'4

the

powerful countries did not hesi¬

national
mental
serve

not

should

confronted

different

with

concerned
oh

interests

all

7
7

sufficiency

possess

of monetary

some

problems

abroad.

tional.

ments

far,

interna-

most

stable

within

system

of free
exchange markets for alb cur- *
rent payments and'
for; normal i
transfers
on
capital; account.
There can be little hope of es¬

their

ask

take

private

channels

the

govern-

considef^i-

into

naturally

in the
sayings in¬

stead of

relying

The,

resources

the

7 71

are.

features

may

t>7,
uni¬

certain
the

and

The

areas.

world's

various

I tries of the world show
ety

less

progress,

coun-

vari-

conditions, with great
achievements in some cases and
acute

sometimes

distress,

even

others,

j A '
importance attaches to
realization' "iq the United'

special
the

States

level

economic

activity steady enough to serve
generally as a basis of adjust-

■7: ment of prices ' and exchanges.
The
Chamber (further -' hopes
that the United States will

on new money

derived from the central banks.

consultation

monetary situation, some prob¬
lems and responsibilities i are
peculiar to particular countries

accumulating

market from current

versal

in-

advantages which

4. While' there

>7 through

tion

bring.'

77 but official financing needs to

v-;. tinue

take

movement. for

main

lead

free

con-

the

in
r

trade,

which is so important also from
lending countries are necessar¬
ily limited, these countries be-; 7. a monetary point'of view.7 :7;
ing forced to pay close atten¬ 5. Finally, the Chamber mqst em¬
tion to the possibilities of actual'
phasize what is so obvious but
still so important, namely that
;;;dedivefies :pf goods and serVwithout expansion in the out■: ices—a
realistic consideration '
I

system, it will be necessary to
at economically tenable
rates of exchange to be
-kept

to
to

7. ternational

lending

has been ar•7 ranged between public agencies,

arrive

primarily' international in 7
character. 77 ^777 777 ■ $77:.:<
7-(i) To restore a Smoothly
working international monetary
;

mittees

■

serves, ,but some need substaij77 tial
financial
support
from

low

even

moreover,

aid and urges its National Com-

re-

neces¬

are,

institution

rule* approblem with real ob¬
jectivity — a.. circumstance
of
importance! in matters of cur¬
rency and international lend¬
ing. The Chamber hopes for
signs of a general willingness
to haye resort to outside expert

are

747:7 (iii) Many countries

international

proach

the

which

to get a new slaht
its problems. Representatives

will,

pre¬

bound to bear upon them.

prevail again.

•

independence of outlook,

when

the money and cap¬

are

■

authorities
inter - govern- 7

by
agreement

similar. practice

were to
The outside ex77 pert, trained -in a different milieu, is often better; able than
the ' nationals of the
country

monetary

established
/

treas¬

very

banks.

war,

tate to call in eminent persons
abroad for consultation.
It would be a great advantage

from

and

periods of European his¬

as in the sixteenth and
seventeenth centuries,, the mdst

7 not be subservient to any par¬
ticular interest. It is also important that; the various inter¬

(an,d<vlnv some
have), a. monopoly

rates

which the borrowers also must

7 take into account.

;

4 Put of goods and services,; there

can

tablishing such a system with-', 77.
(iv) The
Chamber 7 recomout vigorously
furthering a free [ j mends that all countries should
exchange of goods and Services. i! adhere as soon as possible: to

steady increase In the

The

,:i

Chamber

Welcomes

the

intention announced
by the In-, 7

ternational
proceed
par

Monetary Fund to

with

that have

but*

being
-

the

earlier

tory,

To achieve greater monetary
security, the central banks must

insurance

borrowing. But

tial

■

permanent
;

not been further increased

ture j(a serious

debtor countries.

often

distort the cost and price struc¬

the:

still

liquidated, for not only do they

unduly straining

the

Government subsidies of

subsidies

can

.(ii)

/different kinds have

on, ,repara-

Oiid' other accounts

adjusted

cases;

but

view

adjust^

institutions

(v) During

so,

one

made

country

country to have resort to
expert advice which the
League could give. In some
a

the

con-

77 of the great shortage of houses,
rents may have to be regulated
for some
time to come, but
7

7 for

proved useful in the past for
7 more; capable of
satisfying a
influencing economic develop¬ V; great variety of needs. Individ- ; ;
ments.. Treasuries and other
7 ual private credits, more closely
monetary authorities should be-,
.linked to a movement of goods, 7 ;
gin to think in flexible and not
J ;, can as a rule be more easily
in rigid terms in this field
also.
adapted to changing circum¬
In modern economic
stances than large blocks of oflife, the
national and international 'as¬ 7 ficial financing. Private credits, ■7;
moreover,
make use of funds 7
pects are closely interwoven,

con-

other, the

public

struments would be lost which

wartime

unfortunately came to be re¬
garded as a sign of inferiority

supplemented whenever pos¬
sarily innocuous. The perpetu¬
sible by private activity, and
ation of such rates would make
this activity ought gradually to
monetary
management ■ more
gain in importance. > An indifficult, since One of the in¬ 77 creased.. employment of funds

sumption should expand,7 the
price and cost system has again

soon

investing

interest

peace.

private

their

increases,,: rationing,

wage

shortages

threatens, no
solutions will suf¬

there 7 is

»' 7

financial stabilization.

„

ital. markets and have, as mo¬
nopolists, been able to fix lower
rates of interest in spite of all

tivity and increased output. As
7

inflation

piecemeal
fice,

gone

from

important

(

law.

bank holdings of govern¬
bonds into the hands of

position

has

period of

uries; haye shad

function in a normal manner,
7 and control may' prove a defi¬
nite obstruction to greater ac¬

position of any country

area

serious
?

•

When the deterioration

in the

;

has

occupied countries, the
7:7 responsibility necessarily rests
on the occupying powers in so
7far as they carry Out the func¬
*

adjust¬

etc., helped to keep back the
rise in prices. Now that peace

constructive: scheme hold¬

war,

which

.practicable, by the
adoption of specific monetary
provisions with the force of

such

stability and continuity,

tions of government.

under

whenever

the opportuparticular be

companies; and savings

•

ade-

task

should

ment

v
(i) In wartime,
when the
7: main task was to reduce private
Consumption, price control re¬
inforced by such measures as
subsidies,
quotas,., restrictions

resolute

the

transition

evade

culties inherent in

(iv) In order to; achieve fTnancial and economic recovery,

;

some
greater definiteness of
policy;: but beyond that, fur(7 ther steps ; may suitably j be

should in;: the future be made
during any,period of relatively

well

practically
all countries, even those which
77have a sound budget position,
are faced with domestic: diffi¬

taxation

system, may in
part be entrusted to independent persons of experience, collaborating with members of official bodies.
'• <

the

its

over, efforts should be made to

2. On the other hand,

reviewing

finances, with particular emphasis-ron cuts in exthe

ment, it might easily become
downright misfortune. 1
7

the State

77 penditure and

ing out the hope" of real economic! recovery oh the basis of

•

respects

bring; new government issues,
whether long or short term, as

;

out above^ the
recommends
that,

urgent the need, the
lending should be^ dUne as part

cree. Adherence to the Bretton
Woods scheme already involves

wartime government assets to
the retirement of debt. More¬

moment into
substantial scheme. For-

The task of

set

Chamber

7 7 monetary changes can be made
simply by administrative de-

taken whenever possible to dethe proceeds of sales of

possible

Government expendiure must 7 eign financial aid is urgently
needed
by certain countries,
] be subject to a thorough overbut such aid should be used to
?77 hauling so as to eliminate superfluities; arid prevent :7too 7 rebuild what the war has de7 stroyed and for other construclarge an administrative estab'7 - lishment from reacting unfa- J7 tive developments as indicated
; ? in (v) above.
If it were used
; vorably on the budget position

war.

principles

and

ation

vote

•

the

alteration

economic

the

however

(iv) To guard against an in- 77 taken in each individual coun;.v, try
by parliamentary • control
in the. already heavy
public;.debts, a real reduction \ {over : currency ; matters, : and

nity

the

in
an

7 crease

(Continued from page 7)

revenue.

that

attention

77;vW 47.77^77

...7*

power by bringing budgets
under control, so that no new
notes need to be printed to fill

•:

interest

lightly be thrown away and
country should be allowed

: :

past experience at a time when
the fundamental conditions ob¬

ing

77 and

adjustment,

general

(v) Perhaps the most urgent
problem to which the Bretton
Woods
Bank
should give
its
financial recovery of countries
that have particularly suffered
from the war. In line with the

tage of stable rates should not

prosperous years;

between

J-:

should be made as soon-as pos¬
sible. But, even so, the advan¬

think too much in terms of

}

gap

scheme

exchange

fundamental

according to
acquired,

the experience

serious mal¬

institutions

these

7 alteration in: the exchange rate

dangerous it is for wide circles

baby has outgrown
his welcome, may be dumped
by the entire Board one of these

will make possible the remain¬

the

expan¬

war-born

contemplated which

are

disequilibrium and, when such
disequilibrium exists and can¬
not in practice be corrected by

added,
to ; guard

holding
Regulation W in their lap. This

arrange¬

Board

serve

fulfilling
commitments
which
the United States has made to

cases

thd

adjustment. Finally, the Cham¬
ber hopes that in time various
modifications may be made in
the statutes and practices of

en¬

cession of 1920-21. The Cham¬
ber wishes to point out how

77 Make

money, but from the
House comes word that

the importance

the duration of

orderly,

Woods

variations
in

rates

and

•

•j "in view of

prospect

and

Fund

not

are

exchange simply as a
:,
(vi) In this connection the
'=.-7.7- ' -;T7V i 7;;7v:7'7- 7 matter of business cycle policy.
Chamber, wishes to make one
A "beggar-your-neighbor" atti;;7. There seems to be little like¬
7 general
observation and heclihood that the next downward 77 tude is incompatible with a
«7 ommendation to all countries,
turn of the business, cycle will 77 growth of confident collabora7 great and small.)In connection
resemble the great depression ; 7 tion.
* .'
,
>
with the' important work car¬
7of 1930-33. - If a comparison is
(ii) The abandonment of the
ried out by the League of Na¬
to be made, it might be better 7 " old
gold standard has in many
tions fob ^financial reconstruc¬
to make lit with the brief re¬
countries brought about a sitution after5 the first world

further, overcrowding.' I
77 7,(
*7 4
•77777'' 77

date, Treasury found

7 itself without necessary admin-

7 White

im¬

arrangements. 7

Bretton

allows
f

But

way.

in regard to industrial
sion.'

before

order

The

against unduly easy conditions
on the money and
capital markets, and great caution in makin price and wage increases and

Capitol, a quick freeze reception
being1 readied for: - President
Truman's bill inviting 450,000 war
displacees to enter this country.
The President will be tartly told
we should put our own economic

the

exchange

must be

measures

including

and

passenger,

bus

70,000,000

practicable

every

U. S. doors won't be opened to
displaced persons in 1947, may
even be
closed tighter.
At the

lend-lease obligations,

likely

units

turn to Congress. Approxi¬
mately $30,000,000 in lend-lease

same

stature,

15,000,000

change rate structure,
hance

boom by

has

concerned

the

dissipated in ;a
way which wouid only prolong

to fit all currencies into the ex¬

pol¬

cycle

the

Production for the indus¬

and

may

that

cosmic

total

business

Bank

monetary situation

a core of exchange
stability should in the mean¬
possible gradually

•achieving a real budget sur¬
plus, which means, among other
things, the limitation of expen¬
diture including the postpone¬
ment of new public works in

motorcycle tires.;
'774
"V*
*
* \.ik' •'
''b'V

foreign nations

demand levels off. Con¬

measures. Care must
be taken to ensure that the rer

time make it

icy, the task of the government

retreat to lower

modern

disturbing

must

proved, but

the

goods industries. According to
the widely accepted principles

is to moderate such

level

took

remained

' «'

trary to expectations, truck and
bus tire production has recently

Treasury officials are seeking
adequate funds with which to

goods

currencies

sources

countries

induced

1946.

news

''{

wind up

;

moderating

1947 and then

conferences for the Christmas and
New Year weeks.
;,
" !

boom

value determina-

par

some

and

production at high
altitude during the first half of

time off during the holidays—so
completely, in fact, that Treasury
Secretary Snyder cancelled press

♦•

tion for

by a
strong demand for consumption
goods and supported by great
investment activity in essential

try in 1947 is to stabilize around

financial

be deferred until the economic

recon¬

devoted

present

is continued

■)

Outlook for the tire industry

is
!

guess

(iii) Particular attention must

the Bank to date, feel legislative
hypodermic is perhaps advisable-.
•'

aim at one universal reduction.
Democrats will needle them for
their empty 20% promise, may

outcome,

aren't

task

Thus, the

baaiy 7

may

the

struction. •v

of the enabling
satisfied with

sights to less than 20% but still

the

•

the International

legislation

across

side with the White House.

scan

lowered their

now

sis

which
in

needed

good chance the House

vote to

may

This philosophy collides
Republican
pre-election

with

amounts
1

Bank. V. Sponsors

present exemption levels

raised.

tablished, the deficits absorbing

a man¬

■ v

graduated cut, with low income

deliveries in

consistent with existing leg¬

islation."

CHRpNICLE

establishing

values
an

for

inf-

tion.

when

*•

i. i

of
»»<•*,

exchange

rates.

*■' t*'*»*>> '

Woods

real

not

chance

monetary

7
(*

.stage and
rency

»•« *

ttt

perfect,
of

hopes that,

arise,

will* be

thus stave off

depreciations and

cur-.

other

solution

In fact,

framed as to stimu¬

must be

development of avail-

able

resources and

out of

new

scope

posi-

early

for

late the
;

these

found

monetary 4nd .'economic policy

inter¬

collabora¬

The Chamber

difficulties

basis

the monetary problems.

institution,

j7tion to take action at

mining at thi^j time the-ptthp^te
structures

institutions

con¬

ht>t ide^iTfbfc"deter¬

offer

national

stabil-j.

ity although realizing that
ditions ajfe!

Bretton

7which,, although

currencies

element of

the

standard of living and no true

given to

--'initiative for
-

the working

ideas with sufficient

enterprise

and

men to assume

the

risks involved in all economic

progress: 7-7

J'//-7,

•

V 7v7

THE COMMERCIAL & FINANCIAL CHRONICLE

N. Y, Curb

varied.

during

the

past

year

are

Plans

and

many

Canadian prospects

for

Prices

have

mained
row

range.

risen

and
but

durable.

have

minion

re¬

dustry

a
comparatively nar¬
The index of wholesale

level.

during the critical period
of January to October increased
only from 104.6 to 110.8; in the

secur¬

dence

basic

materials

world

but

tion

preoccupation

shortages in
throughout
the

Canada
was

the

gether

main

for

ment

available
where

prise

encouraged.

defensive

the parity
of the Canadian dollar was raised
to par vis-a-vis the U. S. dollar.

This

has

criticism

measure

provoked
in

view

normal

trading deficit with this country,
but sufficient emphasis has not
been placed
on
the Dominion's
overall favorable

cal

position

foregn commei'in .relation to the

world at large. As soon as multi¬
lateral conversion of foreign cur¬
rencies becomes

not

ter,
ume

of exports in comparison with

essential

imports

should/ place

the Canadian dollar in
nerable

invul¬

foreign exchange position.

Attracted by lower costs and the

generally

stable

economic

and

being notified of the

are

happy

private

the

service

new

and

advices

from

the

Ex¬

"The

prior to the

constitutes
a
re¬
central transfer serv/

conception of

the

in¬

following

member

firms.

Where

with member firms able

their

the

to make

of
securities
tbV the
Curb for transfer will be made
by
member firms between 9 and 9:30

each

morning. /.V'/-

"Perfection of the system to be
put into effect next month is the
work of the Curb
Clearing Cor¬
poration and the Cashiers Section
of

the

Association
the

significant straws in the wind
indicative of the commencement

of/Stock

New

Mr.

Moffatt

York'

stated

Ex¬

coopera¬

Transfer Assodationl'':/
'

Stock

';);
beljef

would prove of great value to the

confirmation

provided

by the report that both
and

GOVERNMENT

British

hand

the

Ca¬

Governments

that

will

Canada's

not be long
fast-growing

;

shipyards will vie with those of
Glasgow and Belfast in world im¬

PROVINCIAL

portance.;

•

;

During the past week the

MUNICIPAL

ities

markets

market

held

were

firm

with

the

3's steady either side of 99.

funds, still influenced by ad¬

justment operations for the yearend, fluctuated between 4%. and
With

the

anticipated

cessa¬

tion of special sales both the

A. E. AMES & CO.
'

/, ■ / INCORPORATED

/v/:'

the
/

new

TWO WALL STREET

ternal

fined

ex¬

bonds displayed little
transactions in in¬

and

stocks
to

the

were
largely con¬
customary year-end

operations. Gold stocks continued
to

discount

tax

adjustments

imminent

64 Wall

action

reasonable, accord¬

proves

;

•

These

'■

Provincial

Municipal

•

Toronto

and

counting

"This

doesn't

;/•

mean

bor, has

benefited

being

liquidated,

artificial

sum-

may

the
circum¬
be incompatible.

terms,

themselves, in
spite of Federal and state court
interpretations; have not yet been

reserves

/////////j given definite /meanings,; and/to//
that;labor! vi®w of the confusion that still

the

s s iu the use of accounting
legislatures and law

terms

courts, the determination of profits

may/her out of harmony,,, with ,4/

actual

disad¬

Montreal

feature

of Canada's

§|

external

trade position this year
the return to

has been

unfavorable bal¬

ance
of merchandise trade" with
the United States, according to the
Business Summary of Dec.

,21 isr

sued

by the Bank of Montreal.

millions

1946

In
im¬

States

exceeded

exports

this country by $379 millions.
In
the
corresponding period of

1945,: Canadian merchandise trade
with
in

the

United

States

excess

resulted

exports/from

Canada of $25 millions, an abnor¬
mal departure from the historical

pattern

Incorporated

excess

of
-

imports
.

-v;

and

than

conditions

i rollers'

another

cents

In retail trade 63%

had

re¬

given

any

/'Vancouver',

•/

pamphlet,

America

of reporting to |
financial affairs//
consist only of receipts and costs//;
and we have dropped put of/all i
ran
highest,' hours and take-home of our income statements, the ^
pay dropped most.
1 #
word 'net,' the word 'profit,?: and I
"The average wage in manufac¬ the word 'surplus' and • we have > ;
turing industry' in August, the lat¬ dropped also the practice of draw^ •/
est month reported, was $44.61 a ing sub-totals and making interweek, which < was 6 % lower than mediate stops', to note 'income? /
the wartime peak of $47.50 in Jan¬ or
'profits'/before this or that//
uary,/ 1945, and 9% < above the payment. We find that these words v/
the

public,

pur♦

and intermediate totals .divert

iSeptepiber, 1945, figure of $40.87.
Wholesale prices'
for'fp r o d U c t S
foods and

farm

thp/<
attention-fyom the central truths»/|

The words

prod¬

'net and 'profit'

that

11%

fiscal year

-meanwhile; had
advanced
from August,
1945 to last
September, which looks as though
industry had been just a bit more
selfish than labor, or, by a margin

'net'

Of 11 to

all

happened is

have prices , and profits.

And

there

was that
business ;• were

bulls

hogs

about—bulls

come a

that

had

its and in gobbling up

item
ber

by C. M. Rekert

1; captioned

Decem¬

"Elimination

be¬

supplies,"

/| The: New York "Times'■ in

Price Controls Reflected in Soar¬

"profit' are not accurate ter-//
figures, but merely estK /t

All

bit hoggish in prices, prof¬

finality what is 'a//
a 'profit?
We ; f

that

Shortcomings of Accounting Data

se¬

well

what

mates."

other things,

were

dead stop /.</
possible to//

miliar

what the stock market may have
and

a
business never /
dead stop /except; ai.^
dissolution and therefore the fig— /J;
ures designated as a 'net
income///

jumped, but

and

know

comes

,"Sc>, ;out of the so-called: labor

domination what has

end -of its.;?

comes

determine with

imply;///

at the

and therefore makes it

9, or 2%.

that units costs have

business

this is not, written

accounting principles

disor

;

distrust in corporate reports,

fact,: the profession of account-./

/
/
;

has made wonderful prog* //
less in accomplishing its aims. But /
/
accounting data, when it reaches /{
the public, is highly summarized,
—covering, as a rule, innumera¬
/ /:/
ble
transactions
completed and /
still in process, and corporate fi* /
ancy

ing Earnings" tries to uphold Mr.
nancial
statements
require riot
Hughes' concept.
It states:'//: './•-<'
only to be looked at but looked vj
/ "Indicative of the rapidity with into. They must not merely be;/1
which many companies operated
read, but analyzed. «
/
.
,s
profitably in the September quar¬
Upon taking up a certain com-//
ter followig six months' of oper¬
pany's statement, the investor or //
ating losses—occasioned by cur¬ business man desires
simple and ' /
tailed production due to strikes—
concise
methods. by t which the//
are
the
figures
for
the
nine
operating results may be listed /':
months' period. The combined net
and compared as between differ- /
/
income of 264 companies in 47 dif¬
ent companies or as between dif- ,./
ferent
manufacturing industries
ferent periods for the same con- //
under review amounted to $1,013,cern. There are many factors out-//
791,103 after taxes, 'against $1,- side the bare
figures to be con:'
002,480,057 earned in the first nine
sidered, however. /"Averages" or /
months of 1945, a gain of 1%."
"ratios"
used/from
accounting;/
Small as this percentage gain
data may be misleading if these
/
may seem it is regarded as signifi¬
broader factors are lost sight of.
: >
.

The United States' Steel Corpo- 1
ju¬
and the Bethlehem Steel / /

ration

Corporation,
as
examples,
are'/
commonly considered to be com- '/
peting concerns of the same stand- '/i
Are Profits Always "Real"?
ards of operating efficiency and
But may not even this moderate
financial standing. They undoubtshowing be deceptive?
In spite ' edly conduct ,their business under
.

tj;U

/ "For the purpose

no/increases, in service
trades 67%, and in wholesale trade
48%. Where wage rate increases

shortages in the early part of the
year which hampered production
and earnings.
/.
// /;/ I ■

■

request

Institute

Sept, 21, 1943:

cant in view of the shut-downs and

/•'■'/.•/

ii!

Street, New York/5K1/!'- /"'• ///

Winnipeg

less

With Us Unfavorable

hour.

raises

got

cause

of which is available

•

20%

parage

are

received

curities also may have hinted was

contained

14 Wall

Corporate

credits

that

Wood, Gundy & Co.
-

be ,/

adequately

stances and

market/ What the nosedive in

CANADIAN
Government

may

with correct business practice. Ac¬

opera¬

Canada Trade Balance

appraisals

copy

SECURITIES

Tax

war

cover

pricing their products out of the

Canadian Bonds

■■■

met,

are

estimates based upon
scientific rules that do not always

the

seen, among
both
labor

•-End: Valuations of
;

Street, New York 5

WHitehall 3-1874

Additional
transfer agents in Manhattan will
be included under the plan if such

.;' //:;////' from the United States.

TAYLOR, DEALE

COMPANY

favorable

the part of the

Federal Government.

tematic operation.

•■//;///;''. //■£,-//;/ $1,110

year. ;

External

activity

NY-1-1045

syssys¬

change and internal bonds' should the first ten months of
show a definite improvement in
ports from the United

NEW YORK 5, N. Y.

RECTOR 2-7231

participating brokerage firms and
transfer agents, by effecting

the

long

Free

5%.

system

secur¬

term

CANADIAN STOCKS

transfer

ing to the announcement.

*!•..-

again domi¬
nated by the activity in Dominion
internals.
In
spite of end-year
liquidation this section of the

CORPORATION

central

the:Firth-Browm^J^^-^r^11!^ aJar6e. number of
individual deliveries into one

le_
development. This step would also

r, e

ucts

his

that

mass

350

not
depend

must

companies
earned
12%
after taxes, than they did
period when

other than

ditional

profitable-/: V

determined definitely, but a going ,/

ceived

pickups from the Curb

tween 12:03 and 3 each* afternoon.

are

and all liabilities

cases

demands have not been excessive
in many instances. The
hoggishness
here, as in some industrial quar¬
ters, means that a segment of la¬

ish^ aircraft essential; units of
change
Hawker-Siddely and Rolls-Royce, tion of Firjps; with the

suggest

that

has suffered much^;
.

will also pick up transferred
se-f
curities from the transfer
agents,

war

the earlier installation of the Brit¬

nothing

The ?

vantage of its brethren. Thus, it case. "■
'*V?V
mored
trucking
company,
the might be imagined that after the]
All this is clearly stated by En* |
Curb
Clearing Corporation will several big, and many little strikes j ders M. Voorhees, Chairman of the. •;
now
supply its own staff of mes¬ carried out from V-J Day to May] Finance Committee of the United •'
States Steel Corporation, who, in
sengers to effect prompt arid con¬ pf this year, almost all labor had
tinuing deliveries to 42 transfer forced higher wages. Actually, ac¬ defending the revised form of his
agents in lower Manhattan below cording to a Bureau of Labor Sta¬ company's annual financial state¬
Chambers Street, beginning shorty tistics report, 20% of the workers ments in which the term "profit" / ;■./:
ly after 9 a.m. Curb messengers in manufacturing industries had was eliminated, told the Comp-/;:

famous Clyde-side firm of Thomas
Firth
& John
Brown

just

have contributed to this showing,
but the fact remains that no one

plan

earlier plan called for
delivery of
securities by contract with an ar¬

even

toent,!;/,;///.^

had

shows

year

tions.

The

migration of British
modern industry to Canada. Ad¬

CANADIAN BONDS

few

today British Deliveries

nadian

last year in the same
that period covered

the

enter¬

industry looks to Canada for its
salvation and profitable
develop/

except

so,

largest

delivery schedule too
rigid to meet the requirements of

re¬

stallation of British air'
power; in
Canada did so much to save the
Mother Country, so

are

single transaction when
all assets are in the form of cash
a

imaries and

because of

re¬

practical mat¬
Thus the recent establishment
Canada's overwhelming vol¬ within
the Dominion of-the-world
a

things

ness

business,

vision

British

suspect but

tralized. Just
the

terrible

labor- compulsion'

best,

estimates.

leading corporations. The
profit record for nine months of

ice offered to member firms ear¬
lier this year and later abandoned

the

Above all it is now realized in
Britain that in this atomic
age
British industry must be decen¬

reasonable
the

than

among

develop¬

unrivalled natural

Dominion

compared

concern

with

sources

industrial

suffering

isn't

change state:

compels British in¬
enterprises to look 1 to

space

busi¬

instance,

result

said.

fills every requirement. Unbound¬

Do¬

and

whole, and to labor as
well; The constantly repeated as¬
sertion that industry, for

for the forms
stationery necessary for par¬
ticipation in the plan, Mr. Moffatt

Isles

with that of the rest of the world.
a

resources

individuals

instructed to apply

spect the Dominion of Canada ful¬

ary pressures from without as a
direct result of Canada's outstand¬

stability

the

by the accounting profession that
profits of a continuing and going

causes

and

in Britain to¬
impoverishment

fresh unfettered fields. In this

minion has had to parry inflation

economic

natural

dustrial

the marketing of sur
plus production.
/'/:
/"/v //

ing

with

the

British

outlets for

the

industry

to find suitable

In the field of finance

ness

not

are

this

features

The latter
development is log
ical and inevitable. The socializa¬

increasing
in

accen¬

this country but the
significant movement was
migration "of industry frlom
the United
Kingdom. • ; ; /••; ///

evi¬

was

unusually high

movement was

//./""
being hoggish that

"It's
trouble

new

agencies, reported profalways "real"1 profits.
should be acknowledged even

its

ber firms

towards

year

and other
It

V •/ ■•/.

procedure/ Fred IC.
Moffatt,- President of the Corf
poration, stated on Dec. 26. Mem¬

most

134.1.

there

the

in¬

the

period similar prices in this
country mounted from 107.1 to

year

The

the

was

foreign

tuated from

same

During the

flow, of

during

Canada

prices

;

the

arr

address in New York City on Nov.

■

effective

1946), who stated in

I"* /

were never higher.
Despite basic eco¬ ities transfer service for mem¬
during which the Dominion has passed from an essen¬ bers of the New York Curb Ex-^
tially youthful agricultural st^ge to one of adult
maturity with Cana¬ change Securities Clearing Cor¬
dian industrial development
competing boldly with that of the older poration have
been
developed
industrial powers, the Canadian index of
stability remains unchal¬ and perfected to a point wher0.it
lenged. Labor difficulties have^—" V. p / '
•//;:, has becomes possible to set Jan.
been acute but their settlement
political situation within the Do¬ 6, as the inauguration date for

been

(Continued fpom page 2)

Nov. 28,

nomic changes

has

////

centralized

;

Transfer Service

By WILLIAM J. McKAY
achievements

Exchange

Plans Securities
Canadian

Thursday, January 2, 1947

London,Eng'Iand

i
[V ii

long efforts over the years to.

strict and sound accounting

perfect accounting procedure, and

cedures,

in spite of strict accounting rules

scope

^e^elbped

under income tax

yet in

operations

iai^s considerably.

pro-

organization and
they

differ

The United

States

yolume 165

THE COMMERCIAL & FINANCIAL

Number 4556

Corporation is a holding
company,
controlling through
Steel

stock

ownersnip

of iron and steel
distribution.

every pbase

ufacture

suDSicuaries

quires accounting reappraisal, ;and

Industrial Manual and

tnat after proper

adjustments are
made, the rate of business profits
are; not as high as they appear.

averaged for each period.
All
computations were based on inde¬
pendently audited annual finan¬

The

cial

man¬

and

The

productive

requires

process

Bethlehem Steel

partly
duces

products /such

also, like U. S. Steel Corp., en¬
gaged in shipbuilding and ship re¬
pairing. The differences in their

but

ural

present inflated market,

It is

change in the price level.
question whether reserves
can always be set up to meet this
contingency. / Certainly, the ex¬
perience in the early Nineteen-

their
capitalization, their
operating costs and methods of
computing their rates of profit.

sheets

can

appreciate why in every
analysis of financial statements

computing profits, the spe¬
character of the company's

business, the relative size of its
plants and the scale of its oper¬
factors of great impor¬
tance.
Accounting methods used in
plants Of Varying sizes as well as
are

did

not al¬

con¬

ditions with reference to the re¬
porting of corporate profits. Again
Mr; Voorhees of the United
States

But

and

nail

the head.

if,

seems

the

use

mass

production

under

over,
costs

"Thiere
that

and

These surpluses are stated in
values, having fluctuating

money

purchasing

and under

power,

accounting

system

which

keeps
asset values at cost, and liabilities
for
their
physical maintenance
and

replacement

mounting

prices, the "safety-valve" function
of the

surplus account may be no
longer effective/ and bankrutcy
may result. / - ' ,7///
./ . •' -v //; 7
All

these

matters

thoroughgoing
business
tives.

and

accounting
happened to

What

figures under
ditions
after
known

require

1920

permit
our

execu¬

profit

similar set of

the future of

consideration

con¬

too

well

repetition in

industrial,

econ¬

omy.

(Continued from page 6)
inventories
a

are

considerable

hits the

"Buying

are

made

buying

stated

policy

volume

fallacy to

than

profit.

higher!Vfat^sF;l6£ equitable

This is

promptly, to long-range
items still scarce. Three

"Boric acid up about 8%.

detergent up about
effective Jan. 1, 1947.
.
1947.

for

"A definite

intention to reduce
and commitments
is

inventories

reported.

Cancellations are more
Future coverage is be¬
ing made only after very careful
consideration.
Longer than' six
months coverage is now the ex¬
ception rather than the rule,

numerous.

the

his / analysis.: "In

•

"More. attention is being given
; price
adjustment- provisions,,
,

and

efforts

eliminate

are

them

being /made

entirely,

least limit the amount of increase,
and/

secure
mutual
protection.
Buyers realize that escalators can

and stable price levels."

•

Jan.

1,
•

products

increased.

10%

up
,

"Paper

'
,

12%,

"Dyestuffs

apears to be a fair

Syn¬

thetic

to six months

indicated

least

industrial

for

textiles,
metals, glassware, cleaners, steri¬
lizers, and other commodities.

aver&ge,

;

breeds r; pros¬

lower

mands from producers of

controlled largely by schedules of
suppliers.
Situations vary from
'hand-to-mouth' where shipments

| earn 'as
Twenties in order to get the new
money it needs for further expan¬
of

Jan.

purchasing agents continues to be

sion,"-'Mr. Wilson

after

Buying Policy

the .-system

conclusion

decline

ash/ very tigfet, due ta
production and higher de¬

"Soda

expected to show'

1, 1947.

certainty i today
necessarily has
much as it did in the

is.

increasing consumer re¬
full time production* is
not * maintained
and
output
of
plants is reduced, the present eco¬

He has pictured

common

that

rising

ly.

Sees Continuance of Good Business

nomic; system, ag so frequently
stated, will be shown to be not a conclusion, it can safely be said
"profit system;"
but' 'rather a that'a .continuation of the post¬
that
"pfofit: and loss system." It should war-business profits will depend
nearly be i
as "Sound
borne: in mind < that -larger ton-a/high level of production and
financial position as it
wis too often prone to think it is. profits < currently
reported ^ are safes/;/And- /both production and
due fhbre to increased«business gales/are ; in turn dependent on
.This is complacency that is omIt is

cerns

main;' fact"today/is
American industry is not in

suppose

regime

prices, business con¬
require proportionately
larger "surpluses" to operate safe¬

put. Thus, it is not surprising that
the average turnover profits of
department stores is less than 3%

V "The

7inous.

abnor¬

higher fixed assets costs are prop¬
erly accounted for'tonder prevail¬
ing systems of accounting. More¬

profits that ac¬
the growth of capital

methods under large volume out¬

likely, in

sistance,

"Chronicle,"

the: Situation thus:

rising

are

at the present time whether these

total

companies

costs and

Account¬

ants published in the

nation

pansion

view of rising wage and materials

Steel Corp. in a recent
address be¬
fore the Pittsburgh Cost

|Nov. 21, 1946 (page 2665)

excessive

develops; and be¬ mally, and under such circum¬
there, is a nat¬ stances, depreciation and
replace¬
tendency for the rate of prof¬ ment reserves
generally prove in¬
decline. But this tendency is
adequate. It is a serious question
a

to present

enormous—

mean

shown in balance

.>/■',7-v":;' general
prices

II.
now

were

not

adequate profits. Invest¬

are

ways uniformly adaptable to each
concern or each
industry.
•

Returning

money

and in

cost basis. These
values may remain constant, when

Twenties, when high-cost inven¬
tories had to be sold at declining
prices, is sufficient proof that in or that the United States Steel
an ' abnormal
market
situation, Corporation contends its profit
adequate reserves to offset a clos¬ rates have been progressively de¬
ing cost and price gap are essential clining to the vanishing f point.
to solvency, ~
The railroads have been showing
"
'
this tendency for more than a gen¬
III.
eration, and only recently, Leroy
A. Wilson, Vice-President of the
Maintaining the Profit-Margin
American
'
Telephone and Tele¬
Whether the present profit pic¬
ture will retain i is brightness will graph- Company, after a comple¬
depend largely on future volume tion ; of ; a study of the System's
and
earnings
bf output in relation; to productive capital, structure
capacity. If costs and prices can during the last 25 years, reported
whereas the earnings, on
be kept down by intensified'mass that,
stock in 1920-1926 was 9.5 %, it
production
methods
to v;"■ offset
has fallen to 7.8%, despite a re¬
higher wage rates; profits on the
present scale may continue, and duction, in relative fixed charges
encouragement will be given to and, a better relationship between
additional investment in industry. debt and capital stock.

Upon considering how different
steel making is from textile
pro¬
duction,; and textile from chairi
stores or motor car manufacture,

figures.
or

values

ment

profits

compared with capitali¬

this

profits

//'/'.v;:

Profit-Margin

-Europe,

amounts

zation

comes more mature

with

ences in

are

resulting wider; gap be¬ it to
tween costs and profits is tempo¬ offset by more steadiness and cer¬
rary and may disappear entirely tainty of profit, and with an ex¬

operations, though apparently
as well as in their size and
character of organization are suf¬
ficient to cause substantial differ¬

in different industries

then

companies

Tendency in Decline

and. the

slight,

ations

were

the,

sold: in

and other railroad materials,
i It is

cial

always met in prices received. On
the
other hand, - finished goods
produced under; lower costs are

ordnance,

munitions, ships, ship plates, rails

one

statements

involved."//;/.;/

in the end of the process are not

primarily highly fabricated

steel
;

Corporation, also considerable time for its comple¬
holding company, pro¬ tion, and reported production costs

CHRONICLE

Book

January at

//"Shipping

substantially
contracts

paper

higher price.

containers up 8%.^

//"An advance of 15% on stoker
coal by a large producer, without
explanation, is reported.
It ap¬
pears/to -be

effort

fix

higher market, and users should
investigate that possibility of in¬
creased

industrial costs.,

fuel

show

oil

and

large

gas

The

the recent coal strike,

use

expected

are

increases, because
;

"Office

supplies, stationery and
equipment are up very materially.
Reports indicate prices are about

double the 1940 level.
%.5This / was further pointed out
/
go down as
perity. But such a /supposition in' a recent survey, the results bf recently/
yyell as up. The wise
"Refined sugar is reported up
/by; /Marion""
Coyle, vendor" also will give that
which
were ' published
flies in the
possi¬
in
the Executive
from 7.600 to 8.000 basis.
Vice-President of Gen¬
face( of inner convic- "Chronicle"
;
bility more consideration. / The
and certain
pf Dec; 5 (p, 2939); eral Motors
Knowledge of the
Corp.; when he said:
opinion is becoming general that
awful wastes / ok war in •
According to this item: 7; h 1
/"There7: are
/; Z
Employment
certain^ business
lives,
sellers should be in a position to
wealth and resources*
-""For
22
large
corporations principles that govern all indus¬
;
"Ther employment figures for
How, then,
estimate costs. of labor and ma¬
do/people derive the^iotion from whose names and" products /brie, try .;// These 7 business /principles
the past 30 days have taken a de¬
war

the records

perous?

terials, ; for near-term needs, and
cided jump.
This may be due, at
j normal /and
reasonable
least partly, to holiday season ac¬
Buyers see no rea¬
adjudication
by
the
Supreme son for
tivities, and may mean an increase
continuing to have all
ing the war years 4942/1945: and- Court.
in seasonal
/
'
1 ,'
*
merchandising./
risks passed along to theih.
/
'
the peace years 1935/1939; v
/> */ ; ; /"The first principle is that
every ://{ 7.'.7 ;•■:■i:'; ••;■./ V:-://-7/ // "Most industries appear to be
;
"In ordfer to give every
Specific Commodity Changes
back on full time after the coal
advent industry, must recover its/cost in
tage in the argument to ther pro¬ its
selling price/ Failure to do So, % "While/reports, almost without strike. / /■-/
•
ponents of the /exorbitant profits'
byj /.even, the ' slightest ;; margin; exception, reflect higher commod¬ -."Employment of male help con¬
school of thought, we have"' pur-- means :
that you; are distributing ity
trends, there are, of course, tinues at a higher rate than that
posely used figures only for years some .part
ofyour" capital with many mixed situations. Price in¬ of female help.
of • good to
satisfactory'business toabh sale.
If this policy is* fol¬ creases reported indicate consid¬
"Manpower is still a problem.
volume.However,, it would .be lowed over a sufficient period, of erable
thought is being given to There are
mbre accurate and„ more^ fair ,to time
plenty of jobs for those
on
enough' transactions the the ^ advances, and prices are not
who want to work.
The general
American - business" to
present cbhcefrt, no matter how Well - fi¬ just
generally- being' raised with*- situation appears better in the
average profits for a period which
nanced, will go broke. Regardless out. justification. The swing from
East than in the Middle West. Un¬
included
widely known these figures show

compile that every¬

thing is happy;" healthy and
think

the

the number of cents of net
profit
made on each dollar of sales diir/

pros¬

answer

that-war breeds a
fantasy of figures and the fantasy ik
too, often
mistaken for" fact, War wrenches

the economy as
the-

nothing else does;

change

over and

practices,

that

management and social
often of; a portentous
rest

the facts

the, truth
;

■

^> /. F

•

decisions,
Sort; may
they: are and

it is."

T. \' -'

(. •

•.

•''

both

»r

?' ,yir>V/)'.

Present Cost-Price Situation
:v/7.// • Deceptive
]' /
An d,

what

our

continuing

noted

discovering to
the cash they
now

further; > he

"that many
companies

should

properly

think

you

their dismay: that

"And -what do

hindsight to improve
foresight,", and he, concluded

"failure to

today's

and

establish

and

tomorrow's

job

profitably

the present
cost-price situation

re¬

5.0<i

Penne^«__"_^i.l
&
&

'6.2

>3,40
->3,4/7

10.4

Gamb^e_7_«7 10/2

v;''5,l>'-:
«

/i.O,

Co.____/

3.0:7;.;
10.0

S..,SteeL___^.__i_-;:;

Standard: Oil of

Du' Pont

8.0

Kodak

"SteeT

the

case

two

divisions

12.0
^

^yn-Mayer)

•

'/v

the eight years prior to the war,
Chevrolet averaged the Sale of 1,-

finally- by / the
Pig iron and
extremely short sup¬
ply; 1 supplies are. entirely inade¬
steel

~5/20

were

taken

from

Moody's

"Many returned GI's are com¬
ing off the 52-20 club and taking
employment in industry."

•

■

Occupation Army Costs
The
mer

military occupation of for¬

enemy

States

the

will

cost

the

$1,503,784,000

for

areas

Uriited

months

ending June 3C,
duction.;
»
eight, prewar years.
'
"Copper priGek. appear tempo¬ 1947, the War Department esti¬
mated on Dec. 13, it was indicated
J "Cadillac in the best of those rarily stabilized around 19Mi0, but
in Associated Press advices from
eight years sold 66,000 units. That opinion v is expressed that they
York
Was mot due to the fact that Cad¬ may reach 21V20, and then finally /Washington to the New
illac " was ah inferior grade of retreat to Vll/zQ if the 40 tariff '"Times," which stated that by
NiVk-Pi"iin"/l countries, the estimates included:
product.. It isn't—it is a grand car. should be released.
p''
Germai
Germany — Army pay,
$260,But it is due to the fact that there Brass products higher. r. Lead ?j
j 500,000; maintenance of troops,
now at the highest prices in his
were
only 66,000 people in this
\ $208,500,(
000; government and re«■
country and over the world who tory..
felt that they could afford to buy
arid pay for a Cadillac; whereas

f'Paint

ingredients have - ad
sensationally, the outstand¬
ing example being glycerine.

corborate;,

profit
power

controversy is
of profits. Dur¬

"A slight decrease in. lumber is
indicated, and slightly more sup¬
ply is available.
/. 7:7' //;>/■:■
•

ief, $148,275,000; total, $617,275,Oi00/ 7/ /';' /v v ,/'/■/ v■ / ■/;7/;// /::.::
Austria—Pay $23,000,000; main¬
tenance, $18,500,000; governmentrelief,
000.

$3,409,000;

total, $44,909,-://.:;::/7:>://

/' Japan—Pay, $238,000,000; main¬
"Burlap reported up 25%r50%." tenance, $190,500,000; government"Small reductions reported on relief, $184,809,000; total, $613,-

mercury and

platinum.
temporarily
easier,
imports of Japanese stock
piles./. .Expect sharp price rally

y Another neglected point in the }

thef buy ing

vanced

were
1,070,000 people an¬
nually who could afford and did
buy Chevrolet cars and trucks. So
price does regulate volume."
;/

Profits in Relation to Price Level
U

v' profit margin
figures for, each
year

quate for the current rate of pro¬

79.5
,■6,5'.

producers.

scrap are in

' li.e/1 *

the

been /submitted

4.0

8.80

Average

9.0 - "

10.0 "7;
j-j:

very gener¬

situation is'not entirely clear as to
what the total increase may
be, as
finished product prices have not

the

Corporation.

prices have,

ally,; been adjusted upward;

there

2.7
7.6;v
6.0

•

15.0

National Distillers
Loew's (Metro-Gold-

Underwood

•/

7.5
4.5

•;

10.0

American Can

•'
7

10.0

?•

9.0/.V

;

5.8

American Tobacco

5.0

3.3

14.5

Allis-Chalmers

'2.5

3.47 •;

10.8
Electric

EastTman

;

-17.6

Celanese

General

■:2;5-/

8.4

:
.

&.S
0.9

■0,8/

13,2 7
4.27/7

loody'r Tire <fe Rubber

>1942/1945

1.2 V'-v

Others have given warnings/that

General. Motors

case

•

General Poods

present

Borden

that

the bar of public
opinion."-'
'

-■

Safeway Stores 'A.7— '7

producing

industry to lose-its

Armour

goods and services for
exchange.
More than that, such failure, can
cause

regulate price, there¬

Procter

understandable;,fashion weakens
and may
ultimately destroy the
ability of a business to continue
its

-7

Woolworth

our

costs

"Cost does

fore;/and price regulates volume.
A good. illustration of that is in

;;'7"// 070,000; passenger cars and trucks
annually. Some years'were high¬
Net Profit Per Dollar
er/than that, some years lower,
of Sales
Peace Yrs;
Wafers.: but/that was the average for those

Montgomery Ward 7_-7

We should

our

ydu
gather / some a sellers' market to a buyers' mar¬ skilled labor still
is short, but the
profit, the fundamen¬ ket on some items seems to be ap- situation
seems,/ to
be
easing;
priheipie is that you must re¬ proaching—and probably is nearer skilled labor is
very short in all
cover your cost.
*
than' many suspect. • .<
;
i
••
- sections.
measure; of

tal

General Motors

Look; bef

1935/1939.

rupt many businesses.

V-

'•
'

have

been experienced.: Persistence in
disregarding economic costs as
they occur will eventually bank¬
use

'
■

to go back for more
before all the
economic costs of war will
have
;

of / whether

low for the answer.

ficient have been driven to boreven

enter^

think 7 the

you

profit margin hag been?

■

Some will

;'■/
fair

prise when business is good?///:

requirements for receiv¬

row money.

profit margin fori private

ables,; inventories and
building
programs.
Many companies that
thought their cash would be suf¬
.•

called

profit and loss system.' -'

"What

are

thought sufficient is
insufficient to cover the in-r

crease in

and

prosperous

depression years—in other words;
ih e average prof its earned/ under

1/•

assume

business risks*

beyond
so

passed by Con¬

seismic proportions. On cost
accountants ' rests the responsibil-:
ity for accounting for the cost of

habitual

are; not

and they are not subject to

economiq/ changes /wrought

their

gress

;

are of

economic

and/laws

./Menthol

due to;

ing the period of drastic inflation when this is

used up.

309,000.

Korea—Pay,, $92,800,000; main¬
tenance, $74,300,000; governmentrelief,
$61,191,000; total,
$228,291,000.

Securities Salesman's Corner

(Continued from first page)
authorities see no chance

British

By JOHN BUTTON
If there is

one

ing securities it
WISE.

thing that leads to

success

when it

comes

It is not

enlarging backlog of future business through tradeouts and advan¬
tageous switches, but in order Wo accomplish this latter result it is
SECURITIES IN THE FIRST PLACE.

vital that he sell the RIGHT
This

such

obvious

ingredient of

wonder that sometimes it is taken
Time

successful

retailing

lightly.

and

again salesmen close their eyes, sell something to -a
customer with a hope and a prayer, and trust to luck that all will
end well.

Many a dealer has grown careless as his sales volume has
during bull markets, and has finally paid for this laxity

increased

through the loss of clients that could have been retained if

more care

had gone into

checking up on the facts before a security was recom¬
mended. Some say securities are made to be sold—that is the bunk.
Some securities shouldn't be sold to your worst enemy let alone your
good customers.

' /

Think this

for

over

000 tons

with him and then several morfe. As you
better you do business over the phone. It
that's the time you are headed for trouble
That's when you may say to yourself, "I
think this stuff is all right; what's the difference, Jim's got plenty
of profits on that last stock I sold him.
I think I'll call him up and
tell him to buy a couple of hundred shares of this dog, it can't hurt
him much anyway." It not only can hurt him but it is very likely

have a transaction
get to know each other
gets easier now
but
If you don't watch out.

steel, will become an economic
Once the backbone of Eu¬

slum.

economic life, it will be¬
source of economic, social

ropean
a

come

and

whole of

new

year

and

abilities that

one

HIGHS.

one

can

are

♦

least by

can

omy

The

example,*

Until

bear market that we have witnessed
still STOCKS THAT HAVE MADE NEW

the

now

/.I/" " J
occupying pow¬
.

ers—at least the United States

had * to

Britain—have

Great

pick all the winners, or even those that resist

you

and
ex¬

Let's do

business in 1947. There is

abroad

with

course

is practically

impossible. Efforts are being made
to
remove; these -obstacles;* but
consultations

proceeding

the

matter

problems but when for that matter was this not true? Pick out some
good securities that are priced right, with a company behind them
that is going places, Get your story ... all of it .. . and do business!

are

slowly that senatu

deliberante saguntum periit.

Aid to Germany can

need for pessimism.

This country has ahead of it one of the greatest periods of expansion
and post-war reconstruction ever known. Extremism in government
is passing, money is abundant, the nation's heart is sound, we have

materials and the fact that inter¬

less than 20% of German exports
of raw materials and half-finished

fectual and

can

only be ef¬
only have a heal¬

thy basis if (1) An adequate food
supply for the industrial areas of
Western Germany is guaranteed;
(2) If credits for raw materials
are granted to set in motion Ger¬
man industry which now lies idle,
exports are allowed for the re¬
demption
of
the
credits and,
finally, the import of food and
raw

materials is allowed

credit

enable this country to become
self-supporting.
to

The difficulty here is that none
of the

occupying powers possesses
an organization capable
of judg¬
ing which German industry could
best be set in motion again in this
way.

The Allied administration
military government, to be

considered
ernment

emergency gov¬

that in time of war or in

seige functions well, but
not suited; to set in motion, on

state of

such a compli¬
cated apparatus as German indus¬
try
under the present circum¬
stances. Allied experts are needed
a

healthy

who

are

basis,

familiar

with

overseas

markets and moreover know Ger¬
man

industry.
-

•

v.H

Dutch-German

Economic

Relations

this

For

it would be
best to call upon the surrounding
countries, particularly the Nether¬
lands, which, - owing to its geo¬
graphical position, is the gate to
the

purpose

industrial

areas

West

and

can

could per¬
form extremely valuable services
in supplying raw materials and ■
processing credits to Germany, *,
chiefly
because
of
the great
knowledge of German industrial
This trust

company

Holland has gained in

life which

the course of scores of years.

Arrangement

Technical Credit

could therefore be

Matters

ar¬

ranged as follows:f A- Tredifina
material and processing credit

raw

of the

lines

the

Dutch credit

Germany1 in 1920 could be is¬

sued by the United States either;,
via the U. S. Treasury or by pri-»

would

credit

The

banks.

vate

large sum, some-;,
where in the neighborhood of 400/

products (not transit trade but
special trade) went to the Nether¬

have to be for a

lands.

million

y %:};

■

'TV';

•

industry and trade also had
to World trade and Ger¬

man

Trust

no access

many

possessed

merchant fleet

situation

the

was

thus more

Holland

and

large

J all

German

large
established branches at Am¬
sterdam to replace their London

branches which had been closed.

Credit

Tredifina

Agreement 1920

"Tredifina

so-called
There

was

noY

Agreement."

restrictive

clause

about the origin of the raw mate¬
company estab¬
Berlin under Dutch
supervision controlled the credit,
managed the securities and fur¬
ther supervised compliance' with
the terms of the Agreement." It
was a typical "Veredlungs" credit
(raw material and processing
credit) that worked well until

rials.

lished

1937.

trustee

at.

The

turnover

extent

the

initial-,
could'

the credit to German in->
dustry;' the Trust Company would
manage the guarantees and supers*
vise compliance with the terms •of'j
the agreement and canalize the
manufactured products or halffinished products into,-the over¬
seas
markets,
after which the
credit could be redeemed. -/./v/lYY/;
v:

machinery could

The technical

follows:

The credit could be made, as

guarantee

of the shipping docu-i
West European har-.
that the security

ments to the

After

bor.

would be represented by

about

100

guilders (40 million dol¬
lars) a month so that this credit
revolved about eight times an¬
nually.
■
'
It is impossible for Holland to
grant such credits at present as
she herself needs foreign credits.
The

only country capable of doing
this on a scale proportional to
Germany's
requirements is the
The Dutch credit

mentioned;f above,

the

raw

materials and end and half prod-,,

available

ucts

German

indus¬

try in the name of the; trust. • In
the case of export ihe shipping

•

again serve as se¬

documents can

The whole can be con¬
tained in a note from'the German
firm endorsed by the Trust Com¬
curity.

and, if necessary, guaranteed
the foreign manufacturer or
These notes could there-/

pany

dealer.

fore

provided with very con¬
guarantees. As soon as

siderable

the goods are dispatched to their
definite destination, the usual ar¬

rangement could be effected either Y
in cash or through a customary

transaction/

credit

,1,

years

million

United States.

far

shipment is concerned, against

crisis of the 1930s' Beneficial "Effect

preceding the
reached

could

The

pass on

On May 11, 1920, the Dutch
Government,' to restore trade re¬
lations with Germany, granted a
credit of 200 million guilders (80
million
dollars) divided into a
food credit of 60 millions (24 mil¬
lion
dollars)
and
a
revolving
"Veredlungs''/ (tfaw* material and
processing) credit of 140 million
guilders (56 million dollars), the

credits
Nether-,

the

Company,; which, {if .

Trust Company

necessary,.

risk.

via

issued

could
lands

last war, when

These

guilders.

Ger¬

the

After

save

furnish

not

ones,

question is: What, form is

this aid to take?"

surface. If the officers of a company re¬
with the answers to pertinent questions upon
which a complete appraisal of the future prospects of their business
may be based,
LET THEM PEDDLE THEIR OWN STOCK. It is
important to sell securities-.
that is where we get our eaten'
money u
but it is even more important that we sell the kind of
investments that enable our customers to keep on eating too.
,
to

30s,

the
set¬

Effectual Aid Is Needed

securities may appear on the
fuse

the

banks and even moderately

bear trend,

mend it

crisis

the

before

and

British

the

but careful investigation of a security before you recom¬ pend large sums bri the' German
you the loss of many customers in the future. /'•'// occupation without result: econ¬
Before selling anything to a customer why not ask yourself, how omy is degenerating fast, the Ger¬
man people, noticing this,' is not
much do I really know about the company behind it? Before taking
anything on faith from here on why not make sure of the supposed giving the necessary cooperation,
is trying to save itself by a frantic
facts? There are plenty of companies whose securities are traded
hunt for food and fuel, which leads
over-the-counter that have management that is aware of its respon¬
to a further'decrease in a rational
sibility to the public and its stockholders. These; are the companies
division op labor:1 Poverty Pro¬
in which you should be interested. The officers of these companies
motes Waste/'L*.
will be pleased to furnish you with pertinent information if they
'This cooperation of the German
are approached in the proper manner. Those companies which do not
enjoy such management (and fortunately they are in the minority) people would-be only very limited
in any case owing to a lack of raw
you should avoid, regardless of how attractive their outstanding

3,640

and

■

Germany's stagnating econ¬
in motion again.

ting

command. WE ARE NOW IN A MAR¬

KET OF STOCKS MORE THAN A STOCK MARKET. For

since mid-summer there

^/v

United States zones, whereby
U. S. would play a big part in

of careful research and they do supervise

despite the so-called major

fusion

the

'%'///->//

our

Western

Potsdam Agreement, or at

that will probably challenge the best analytical

have at

easily fulfill the necessary»
formalities,
'
Y
'

apparent when one
Dutch investments
value
of not less than

brl&s parallel to the present one,
'/YY/"*;/ Germany's overseas trade passed
The situation can be saved only through the Netherlands in everby speedy action, only possible increasing degree. "Financing was
through a modification' of the also done for the greater part via

activities along sound lines. But we are going into

intercourse with German

that

ment the Hope'

this sort of thing is not the rule but the exception.
are successfully retailing
securities today are well

of the importance

the

industry

considers

Modification of Potsdam Agree-

Most firms that

their salesmen's

for the
Europe. :y'j///:

infection

political'
>

...

aware

produced 125,000,of coal and 23,000,000 tons

before the war

you

Of course,

im¬

not

the Ruhr, which,

prove very soon

secure a new

■TO.HURT YOU PLENTY.

does

situation

the

minute. You spend money, and expend your
account. You call not once but in most cases
several times at his place of business or his home. You write letters,
you check up and secure information, you ingratiate yourself, you
do your best to impress this new customer that you can make it
worthwhile for him to do business with you and your firm. Finally
'

energy

relations

million
guilders
(prewar
more than 6,000 a day.
On Nov. value, i.e., about two milliard dol¬
majority of 20-ton freight cars can lars) are registered at the Nether¬
no longer take the full load:
16, lands Recuperation Office. Prac¬
14, 12 tons are loads which it is tically every German undertaking
considered dangerous to exceed. of any importance had representa¬
tives in Holland, through whose
Old Electric. Equipment
hands a large percentage of Ger¬
The electricity supply works are man exports passed. Dutch indus¬
had' numbers of subsidiary
fitted with such old equipment try
that when it breaks down it can¬ firms in Germany making parts
not be repaired. The same applies which were processed in Holland
and re-exported.
Holland's tre¬
to many mines: if the air com¬
mendous importance to Germany's
pressor breaks down and cannot
be repaired the mine is paralyzed. industry is shown by the fact that,

sell securities that PERFORM WELL MARKET-

is to

the

Moreover,

improvement.

recent weeks there have not been

to retail¬

only important for a salesman to distribute increas¬
ing amounts of securities among his customers, thereby building up

•

Thursday, January 2, 1947';

THE COMMERCIAL & FINANCIAL CHRONICLE

and its organ¬

ization "can, however, serve as an

example for the granting of a sim¬
ilar credit, which could result in

World Trade

procedure'fcannot

do
bene¬
ficial effect on world trade and
its revival.
It will result in an
increase in international trade and
the economic
recovery
of Ger¬
Such

otherwise than have

very

many.

The Potsdam

Agreement put

limit to German industrial recov¬

Even if this limit is not ex¬
and steel production is
at the present fixed

ery.

tended

maintained

capacity of IV2 million tons a year,
then even within this limit Ger¬
man

capacity ought to
to
world

serviceable

be made
economy.

stocks
of
numerous
materials (cotton, wool,

This capacity was directed mainly
towards the manufacture of cheap

copper)
now
awaiting
processing in Germany being used
for recovery of the whole World
economy.
The economic life of
this area would be set going again

products for the overseas markets
and for the supply of other special

important
basic

raw

rubber,

country, instead of being

and this
a

millstone

ever

increasing

weight round the necks of the oc¬
cupying
authorities,
could
be
made capable of paying repara¬
tions.
'Yui'
r.v';'yy •

Realizing

t§e

great difficulties

in the way of the resumption of
trade relations with the German

hinterland, Holland, following the
example set in the last war by an
organization' ; with a capital .of
250,000 guilders, has established
the Netherlands, Trust, Company
for Foreign Trade (Nederlandsche
Trust Maatschappy voor Handel
met. het

which saw the crisis of
aggravated by the decline
German exports, can derive

economy,

the 30s
in

nothing but advantage from this.
We are now faced with the choice
either

allowing

Western Ger¬

to become an economic slum
—resulting in a continual loss la
the world market of 6 milliard
dollars and the supply to numer¬
ous
overseas territories of cheap
many

of medium quality, or
promotion of the economic re¬
covery of Germany and therefore

products
the

For everyone
concerned about the latter,
is not difficult.

of world economy.

who is

the choice

Summary

credit institutions and

organizations take part in this.
not

abroad with parts and
products.
World

half-finished

Brutenland).

All large
is

industries

monopoly

company

It
for

of the Tredifina

Agreement
The credit of 200 million guild¬

granted by Holland to Ger¬
through its many was provided for by an
status .-jand with official support, agreement concluded by the twa
jfatipns with German industry Tor
countries at The Hague on May If,
many, years.
The extent of ?these can scope with the difficulties of
Germanyj and which s has
maintained extremely
close - re<-

South

trade*With, Germany, but, merely.ft
trust company, which

ers

.Volume 165

1920.

This

Number 4556

agreement

was

proved by law in Holland

THE COMMERCIAL St FINANCIAL
CHRONICLE
istration of guarantees obtained
by the German Trust Company

ap¬

July

(Statute Book No. 681).

31, 1920

and

correspondence with
Netherlands authorities.

The credit consists of two parts:
credit of 60 million guilders for

the

purchase of food in Holland
A)
and
a
credit
of
140,000,000 guilders for the pur¬

Commissioner

(Account
chase

credit

a period of ten
original term of ten
increased by a further

control

years, but the
years

was

under

The

later extended until

was

sultation

This

can

be split

con¬

German

Gov¬

of
the
management of
Commission

consisting

Commissioners

and

permanent German
this Commission

cases

Applications for credits areVsubr
mitted to the Trust Company in
Germany which decrees,. and if
credit ,is granted, determines .the
guarantees do. be. given.
■
*

in Gertothe prln^

guarantees
to
be
demanded
from the German industrialists

The representatives of the Trust

asking for credit, and, as trus- Company in Holland informs
f' dee, to keep these for the Neth¬ Dutch Commissioner so that

erlands Government.

The
<can

Netherlands

credit may be made

organization

be divided into:

the

banks. The monies
able

ac-

the

of .wage

trust

Treasury.

(Continued from

the higher costs of production and the excess buying power

with

By VJ-Day
index

was

prices.

the cost of
modest 6%

.-rates

81%

were

above

have risen

and

living
above

the

When the collapse comes, busi¬
will be 1 blamedi by labor

system. of
quate.

still

fixed

round

and

other

of force. Labor leaders

uses

themselves

who

Item—

11.,Manufacturing
42. Manufacturing

sioners

and

all

,sV.

have their incomes jacked
but will they offer to. help in¬

crease taxes on themselves to

meet

these

taxes

will

have

;}

; ;

The

Tr
!

Food
'!

and

.....

Tobacco

kindred

,productsT

,tf

1.014

'1.189

' 1.119

1.261

'0.929

0.593

1.224

;;

0.785
0.484

■

0.618

0.501.

fl.

vf;

1.355
r

;

0.786 ':

1.392

0.886

1.261 i

,'•
.;

0.939

•

:'>

0.783

1.013
1.510

round of wage in¬
jforce closely corre¬

creases

will

price increases in the
ahead, unless such in¬
finally force both labor

sponding
months
creases

and goods out of the market. Such
a

collapse of production and

ployment

strong

possibility

because of the disparity
the

incomes

em¬

between

workers

....„

case

,«;..

•.

second round of wage

forced

cohl

mines

since

con-

;

1.480

0.906

Wages Press Prices Upward
winter

Commerce

the

Chamber
United

States

a report; ''Price Control
of«Decontrol 'that the first'round
of Wage increases would
be
-

' by

available
new

for

re¬

To make

18.5c

hour

raise

numerous

rise. The more efficient

and

much

was

paid, from which to
but to measure the ade¬

of current' profits, a de¬
pressed prewar standard is used!
Profits Normal for Prosperous
•''

The

report

Year'

^ :;•%•;-

wall

that profits
are
dangerously high.; Net profits
of all corporations in 1945 wire
5.6% of the national income, a

closely Wcorre-

gopd
are

normal

Much of these profits
kept in the business to finance
year.

inventories, production

and

* ex¬

jcb+making facilities.',
ui^\pj945yt dividendsto'' stdcki

pansion in

true and, even more

the

WPB

i A year ago

•

hind this
same

im¬

the

forces be¬

same

document, prepared

typd

of1 report—that

the
time

government. Then the
document "leaked out." This time
was released with fanfare and

display.„ The. basic tenets and

producers,
some

thus

this

constant

upward

wage pressure when spread across
all units of an

industry; wfpuld

Furthermore, under competition,
producer

every

part

marginal
output; that is,

his

tends to push production until the
last dollar spent
on
production

than

dollar

every. time

or a

little

wages

Now

revenue.

makes them any more valid now?;

selves.

and

goods

disappear from the
unless
prices
can
be
?i.

raised commensurate with the in¬
creased costs. This: is the reason
we cannot assume that a

profits exists which

tapped
is

for wage

pure

wages

can

lump

can

increases.

folly; to

Thus

assume

increased

that

without

price effects, unless accompanied

byv rising efficiency.
Furthermore,
dustries

and

many

whole

in¬

companies of

other industries in 1946 have sub¬
normal

almost

not

end in them-;

guide

tiv6 System are an open invitation
for. new investment
and
addi¬
tional labor.

free

society it

;•

is not

the

function

of. government: nor
a'
private organization, such as the
CIO, to "control" profits. It is the
function

of government to keep
the channels of opportunity

open

that when high profits emerge

in any

field, additional capital and

manpower will be lured into these
most

profitable fields so that short
supplies will be corrected and in

order

Any. private

sumes

profits. Yet

holder^ hrtibunted to only $4.5 bil-- these-' would become the victims of

group : which as- ;
the wisdom and the power

determine

authoritarian

the proper level of
profits is trying to arrogate to it-;
self the proper function of
the
competitive
motive.
No
group
possesses standards for determin¬
ing proper profits and, therefore,;
an
arbitrary program must lead1
;■■■.

decision.

■

Wage Motive
The

many

are

Profits

and direct'
production. Above-normal profits,
in any field under our competi->

rise, this marginal produc¬

market,

Profits

that, in time, profits again
other will-become normals
<

any

becomes unprofitable

some

why

Function of Profits
•

tion

as¬

sumptions of the previous report
proven
fallacious — what

have

industries

these

and

sum

argues

War

declares
made the statement

never

last

increses, may; drive to the
higher-cost producers

yrage

costs

•

ment is

portant,

there

who might be able to absorb

just yields

worked

by the

Board

fails
to
dis¬
close any evidence that this state¬

forced upon all producers in
those industries and raised
prices.
If the high-cost producers are
go¬
ing to stay in business, they must
raise their prices when their costs

check

Production

just • about
low-cost producers.

same. as

;

a case for the inade¬
of current wages, the year
1945 is used as a base, when
long
were

X Actually,

was.

re¬

investment

machinery, is

figure somewhat below
of

warned in

whose companied

now

within the

winter

basis of

quacy
v:

U. ,S.

1
wages1
have;been; J • artificially
forced upward while the incomes
of others are lagging behind.

Last

Pro¬

The

Since that time the investment
of American business, has

;■

the

a Second Round of Wage
Increases Will Raise Prices

the

base

War

Board, four workers
produce
the
same
amount of goods that required
the labor of five before the war,
can

high-cost: producers

'still

the

duction
"

by indu s t r y-w i d e
unions will inevitably affect these

whole labor force.

greatly increased.

According

demanded

taking as profits-base the
prewar period 1936-39, a great in¬

our

;;;

•
always marginal producers,
those just breaking even or oper¬
ating at a loss. A wage increase

report, the CIO

states

are

CIO—Double Standard

were

•

In every line of business

the

they wanted to.

time in the other plants
establishments which supply

In still another

vs.

j
'-'Xi

Profit Motive

motive will cause a
a job, if
the profit
motive first creates the job. Free
man

wage

take

consumer

tal
-

and

choice, mobility of capi-.

labor, and the competi-

(Continued

on page

26)

;

materials, semi-finished com-~
ponents, containers,' fuel, power,
transportation services, .etc.,
to
this one plant/ clearly the total
hosts within and to this one
plant,
wrould arise by approximately the
full 10% wage increase, and not
merely by 2.5% as the CIO claims.

Wiiy
i

begin-:
nrng of the war; stopped the rail¬
ways,. apd. repeatedly paralyzed
the great metropolis of New York.

is reported.
Before the war,

even

only if

raw

true

same

increases is

country

2.5%.,,

would be

total

10%

and

CIO

loss

or by

wage

the

one

the

10%

every

increase

increase took place in.
plant,- If a similar 10%
wage increase took place at about

coercion of strikes and threats of
strikes. They could not do this

c-entration of income .and wealth"

the

upon

much,

the

and substan¬
than the combined net

idly by,; producing at

The report of the\
CIO, pre¬
pared by a former-public servant,
-

corporations

tially

of special

speaks of the threat of "the

production cost only one-fourth

prices,

but

increase

re-

raise, would

profits of all corporations. Clearly
businessmen are not going to sit

judgment• -of., enlightenec
American public opinion.
%

measure,

Department of Labor,
covering 25 major industries.

;

25%

Commission

raise

But this

thus amount1 to abbut five
timies the total dividends

six
all

Trade

7.1

demandedby ; the

overtime

0.819

Statistics, U, S. Department of Labor, except the noted, 1929
figures.
§National Industrial Conference Board.
flNot Available.' *•. I: Li
•: i'
if L-

second

hag. lost

quacy

0.880

0.476

0.536

price index, Bureau of Labor. Statistics,
tNational Industrial Conference Board,

4-Bureau of Labor

dollop

billion.

wages

hours,

1.374 "

1.264
0.763

0.932'

1.126

•Consumers'

1935-39—100.

0.740
0.746

Retail trade >—:

$110

average

Computed from U. S. Depart¬

would

industry,

salaries

y •

8.7-

Commerce, Estimates

vary

V ;

•7.5
.

and

costs

f ports. This means that even if
i; higher wages did necessarily

2.7

industry
;

Federal

5.5

—2.3

place the old, there must be a
return sufficient to make= the in¬
vestment attractive.
v

1.242

$1,231

0.987

V. 1.089

5.8

—1.1

! 6.0

and

$1,085

2.8

—1.4

7.2

6.6

pur¬

made.

„*

0.644

1946

145.9
>:y

—2.4

proportion

total

wages

Septem¬

j 1; about 25% of all costs in manufe facturing, according to the U. S-

The total wage and
salary bill
for the country in 1945 was about

Dollar, Too; Lost
Buying Power
^

the
to

costs

from

National Income.

The CIO attempts to show that
wage.;:

labor

1.1

5.2

"Economic Outlook,"

Although
;

placing this prewar capital equip-? help bring about the very concen¬
ment,. costs are now some 50 % tration of wealth into fewer com¬
higher, if new capital is to; be; panies which we all
oppose.

I-;

0:759

" *

Bituminous

„;"r

fl
mining--^___J-0.681,

Building construction

t"';VV

coal

$0,720

0.571
1

0.695

' If

,--:

\ •'

1945

0.455

§0.627.'-

Automobiles

—1.4

Profit

Furthermore,

128.9

0.503

higher to

September September

$0,491

Transportation equipment; except
Automobiles —.-•! "
Textiles mill products-..—.
If

0.566

Our

support public employees.
i

:J:;§0.G54

help

cbsts?

higher

machinery

land

groups
up,

$0,590

Electrical machinery,*
Other

the

over

92.4

re¬

that old age pen¬
other - fixed income

Iron and Steel and their
products

—9.2

—6.6

ment

in depression. Profits were low
because they are what is left after
all costs are met. Profit
expecta¬
tions were too low to put to work

"demanding"

1933

—16.0

6.2

can

islative" doors

1929

6.8

5.6

crease

122.5

heavily

are

WAGES AND COST OF LIVING 1929 to
1946
.

consumers

sponsible for the wage-price dis^
tortions will be knocking at leg¬

•Some Wages and Salaries Lag
'M The increases in prices which
Lave occurred since war's begintiing and especially since war's
«nd have> steadily worsened the

"•Cost of living-i
Average Hourly Earnings^

—2.9

6.6

pay.

today considering the strike and

substan¬

■

slniiliar

other,

groups which are opposed to the
use
of force and the strike, are

tially ahead in real wages of his
position before the war or before
the depression of the ,1930's.

in*

wage

social security; made*

Teachers

•

living

second

—10.8

■:

which will lead

which

;•

In another report, the CIO has
used the facts equally
carelessly..

ber, 1946, the CIO states:

the unemployment, al¬
though common sense would sug¬
gest that jqb-offers can .be made
only if the worker is willing to
prices

the

all
the
businesses
different types of

1 eaders, for

wage

the

2.4

nessmen

plead¬
ing which will not escape the crit¬

clergymen,, pensioners

eco¬

nomic disaster is to be averted.

all

the

from: all

8.7%

;

1929

substantially.,

was

under¬

standing is needed if real

and

under

.'which

revenue

collected

—5.7

1938™* 5.0

how will further destroy and
pever mentions the concen¬
the buying power of the incomes
trations t of labor union
power,
of these people and will make our
which several times closed down

period 1929 to 1946, showing the
movement
of wages and
prices
<see table below). It is clear that
lay the autumn of this year the
worker

economic

new-

people

Sum

1934,-..- 5.5

make

figure

1932

lapse of markets itnd employrhent.
Some

the

1933*™ 5,2

these stoppages so disastrous and
which lead to economic conditions
which can only end in the col¬
;

the corpora¬

billion,

1931___ 7.9

production
it has not yet

which

.all1

taxes!

1.6%

$52

1930-___ 8.1

and

institutions

This is

unorganized

many

others

comes.

Year

impatient
with the union politics and interunion hostility of the
organiza¬
tional

D'.vi-

Corporate
dend$,<: Savings

add to

which-was substantially in excess

1929-1945*

;
•;>

1929—^ 7.1%

sufficiently;

power.

increases

wage

For the record, we include the
-data from official sources for the

wage

another

that the profit dollar has lost an
equal proportion of its purchasing

workers, of white collar workers

:figure. Thus, whether we examine
the war period as a whole, or the
Honger 16-year period we find that
% the real wages of American work¬
men

when

tient with strikes

tions about

Per Cent of National Income

ical

teachers,

1929, while factory hourly

Yet,

hav!e collected from

Treasury

chasing power due to> the rise .in
prices, -but .refuses to recognize

page 8)

position

and

1945 which

$88- billion and after
taxes (page 61) $36 billion. There¬
fore, the U. & Treasury must

Dividends and Corporate Savings

J.-. ,The public has become impa¬

fl 1 CIO Assertions I
bid

law.

from the

reg¬

193765

to
cen¬

group, labor leaders, engage in
practices with the same result, the
practices are condoned by law. -

State

Fallacies of Nathan

which

combined

total

Data for the period 1929 to 1945
reported in the accompanying
table. ; /
'
"

CIO report, in a table on
59, lists quarterly profits be¬

fore taxes for

permanent source
of
profits.
Over the years inventory losses
just about equal inventory profits.

steel,

the

The
page

are

drive

power

Figures Misleading

a profit
growing out of
accounting procedure and not

would be in violation of the anti¬

made avail¬

are

the

This is

takes

raise prices, they, would be
sured
by
public
opinion

Netherlands

increases

the economy.
If
businessmen

the

because

coal, transportation, etc., to make
ilself felt throughout all sectors

work for

credit, use is
intermediary of Dutch

A branch of the German Trust
.

the

available.

In the issue of the
made of the

...

Company
charged with
countancy and control, the

ra.

is; convened fon the. consideration
of any problems that may arise

fect

round

become

Netherlands,

two

first

interferences, but

German-Dutch

\ In certain

cities agreed upon, and
fxi To determine the securities and
■

the

and Dutch delegates.,

•

of? -thev"Treuhand

according

the

Commissioner,

ZQnumber of

To manage the credit

many

further'

the

organization in Holland.
4 Thetask

has

Oesellschaft" in Germany was:

Government

organization
in ' Germany, r f the
"'Treuhand Gesellschaft," and an
.

•

presence of
the
the guarantees.

cre¬

into

with

ernment

ated for the administration of the

credit.

the

right to convince himself, in

1943.

special organization

(c),

Netherlands

Commissioner

1,1927, to 5%%. i.Half of this
140,000,000 guilders had to be re¬
deemed by Germany by Dec. 31,
1936, at the latest.
The settle¬
ment of the remaining
amount
•was

and

guarantees

erlands Commission mentioned

from Jan.

the

members of the German-Neth¬

Account B, while the rate
interest
for ; the
140,000,000
reduced

credit

them supervised by
officials under him or by

the

under

was

the

to have

years by a supplementary
procotol dated Nov. 26, 1925, and
applied to the credit administered

guilders

registration 'of

seven

digested
the

of the national

;

varying periods, from a few days
to many months, for the full ef¬

(Reichskommissar) and
has the power personally
to
supervise at the German
branch in the Netherlands the

under 3%

the increase will be due to the
ap¬
preciation of the value of inven¬
tories. ;
.:•:■•>'
; ,'

Indeed the country has not yet
the complete effects of

con¬

who

;

rate of -o% for

keeps

&*'V4k

income; for 1946 the figures may leaders for higher
wages.
be somewhat higher
X!
but part of

round of wage increases.

sioner

(Account

first issued

was

who

lion

„

Government

tact with the German Commis¬

v..'./ :

•The
at

materials

raw

Netherlands

the

sponding price
increase.
That
warn ing
-proved ; all f)too
true.
Again, we must repeat this warn¬
ing with respect to a second

ivs

Thursday, January 2, 1947

THE COMMERCIAL & FINANCIAL CHRONICLE

large.

not

Fallacies of Nathan—

1942,

only

ported

CIO Assertions
(Continued from page 25)
live

motive

production

safer

are

prices

and

The

guides to
than any-

following tabulation shows
that in the period 1929 to 1945,
wages

■'

■

•

"«

••

/Readjustments Needed
Nearly
nizes

our

salaries

70%

constituted

national

the

in¬

Net profits to all corpora¬

come.

tions

today recog¬
structure is

everyone

that

and

nearly

private dictation.

under

were

of the

na¬

tional income. It is this small por-

wage

out of balance—some wages

should I tion of the national income which
is the object of the CIO-Nathan
and others should be adjusted up- attack.

should-

ward.

adjusted

the

Only

should

market

downward

and

free

open

these

make

Average Annual National Income,

ad¬

currency, the unprecedented
increase in the world taste for cof¬

the most part

last decade
their

Salaries and Wages*

those which in the
already pushed

ahead

rate

Per

the

Proprietors,

general

69.6%
4.9%

••??•
Many prices are too high. Many
openly say this is
true of their own output.
They
would like to see prices lower, so

14.1

15.7%

6.0

.6.7-%

Interest
Net

rents

2.8

.....

3.1%

But since

$89.6 100.0%

chief component of
v ,*IncludesL
supplements such as
is impossible to work
security payments,: work
toward substantially lower prices social
if a second round wage increase relief, etc.
is wrested from industry.
**Dividends plus corporate savThe past year has demonstrated' ings.
that more production, more effi¬
Only by more production per
ciency and still more production
«
it

r can all workers and all
persons attain a higher standard

the

only answer to a lower
cost of living and higher living

are

standards for all the people.

This

sufficient

which

bids
has

the

Brazil

The

area.

day

than the

De¬

meager

chemicals

I of living.

wood

and

production figures are not
/
available, but in the face of stories
about hardships and disease, it is
•.
probable that the wartime peak ...
will not be reached again until
.
considerable
money
has
been y
poured into health and community
,
facilities. The; eventual outcome
of the basic fight against jungle,
>
disease, transportation, etc., is not
yet foreseeable.

apparel,

—-

pharmaceuticals,

products and metal manu¬

manufacturing

No > other

value.

industry; did

single

over

total output value.

By 1943 the picture had changed
slightly; The table below shows

in the United States.

that

Brazilian Industry

industries had

new

entered

the picture and that manufactur¬

country in the
throes of early industrialization.
For 20 years her industry has a.
a

ing

whole had increased tre¬

as a

mendously.

The Industrial Outlook for Brazil
\
are so

vast, whose rate

growth is so bewildering, but
whose present achievements are
so limited that an economic sur¬

the risk not only of be¬
ing based on unreliable data but
also of being out of date over¬
night. A few magnitudes are suf¬
ficient to illustrate this:

vey runs

than

country

larger

the

The

acre

is estimated

of its land.

that if

the jungle

cleared away, Brazil could

were

.Textiles;\»I:.
Clothing
89.3 i

310.0 ?

110.0

105.0

57.4t

85.0

$14

per

44.9:

60.0

31.5

95.0

202

from

the

inhabitant.
States

344.9*

......

1 76.0
;
/

Construction

region, reaching
Minas

and
Espirito Santo, has
one-sixth of Brazil's land
over half its population.

raw

materials/

Thus it
stuffs

—^

can

seen

textiles

and

from

ers

136,000

Yet

National

income

The

average

that food¬

account,

now

wage was

1,412,000. Hence, by economic Brazil we ac¬
tually refer mainly to the geo¬
graphical fraction to the southeast.

only 14% of her working
population is engaged in in¬
dustry.

;■&:

habitant.

Vertically,

Brazil

similarly

increased divided into separate categories,
by income. In 1942, 8,860,000 ag¬

25% from 1943 to 1944, still as

nomenaL

be expected, capitali¬

As might
zations

are

still

1940

small—in

only 20 concerns were capitalized
over
$1 million; of 75,000 firms
in

1944,

73 %

■

employed

six

workmen, and only 10%
12 workers.
Today,

fewer

25.0

5.4
3.8

new

6.2...

f v4.5r,"

4.2

;i.6

2,400

3.8

,
,

estimated ? the ? need

machines at 5 billion

cru-

zieros*

suff^I ^bm

Brazilian

cotton

costs

than

American, power is far more ex¬
pensive, labor is less efficient,
machinery is all imported.

cept in

Brazilian

year.

far

cotton textiles and

National Income

goods.

Overall national income figures
little

for

country like
Brazil. The most reliable estimate

mean

sorb

for

net

total

her national

The

It cannot, of course, ab¬
imported goods of a

any

semi-luxury nature at all.

tion market

income.

geographical

stratification

one,

based

dissimilar regions.

at that level

of cash

is "income.

the

Brazil consists of three

The first, cov¬

The
small

topmost

the

Redonda

$125,000,000 Volta
steel
plant
setting a

new

Brazil's

industries,

merit individual attention,

few

vertical slice is
but wealthy.

numerically,

Total income from industrial prof¬
its and rents for 1942 was greater

Brazil

forced

Was

recently

^ '

;' Textiles

>.5

The textile industry represented
third of all industrial production

war; its output, esti¬
1,500,000,000 yards in
1943, was- 50%
above ■ prewar
levels.
Exports increased from
$l1//2 million in 1938 to $60 million
in 1943, and with UNRRA to sup¬
port it, Brazil expected to export
a half billion yards in
1945. To

before

the

mated

curtail

exports in order to care
depleted
domestic
market.

for

Argentina,

fear

textile

lest

African,

manufacturers

they lose their South
Chinese and Irish marT

kets in the same way. y

On the brighter side of

Cr.$51.7

horizontal

fact that

with

which

1943,

than

precedent, industry may strive for
larger size, but the small proprie¬
it buys cheap torship is still the heavily pre¬
other essential dominant type of enterprise.

The next higher stratum are the
placed the salaried employees and industrial
billion, or workers.
4,190,000 persons in this
$2.7 billions. Estimates for 1944 category
produced Cr.$20.2 billion,
are 25% higher.
If wC (conserv¬ or $256 per person. In 1944 over
atively) allow another 25% in¬ 70% of industrial workers had
crease for
1945, national income incomes
ranging from 200 to 600
in Brazil today would be about
cruzieros per month; about $130
$4.3 billion at the official ex¬ to $400 a'
year. Although the cost
change
rate
and - considerably of living is high, particularly in
more than that at a purchasingindustrial areas, still these people
power parity rate. >
form at least a fringe market for
It
is
necessary,
however, to imports of a nonessential nature.
stratify Brazil, both horizontally Yet they cannpt, it is estimated,
and vertically, when
discussing constitute a truly mass consump¬

was

■

industrial

ture

the

increasing

the pic¬

be the world's larg¬
better than U. S.
To exploit this treas¬

by a government
provided for inten¬
sification of production and freez¬
ing of textile workers in their
jobs.

Mesabi "ores.

the

industry suffers from
problems despite its

well. as

well-knit transpor- yy

tation, distribution and communi-y .;
cation system system are rudi;
mentary and, not capable as yet?y
of supporting a full-blown manii-?y
facturing economy; y ^
y ?
^
.

of Industrial

Problems
vy

Develop-

ment

the United States 50
ago,

years' ^

100

she lacks certain of the stim-

uli which encouraged our expan- : ;
sion.
Her frontier is vast but ;

uninviting and not conductive to y

migration. Her national pol-y
icy discourages immigration from
\
abroad. Her climate is more trop*
easy

Her laws

ical than

ours.

friendly

towards

than

were

ours.

less ;;
capital ?

are

foreign
'

addition to

these difficulties, others of a more

specific nature exist.-

;

be overcome is the lack of trans- ? •

efficiency portation. Although Brazil touches;

assay

But

The ? most. ob vious: obstacle * to

long been a challenge to industryminded
Brazilians.
The Itabira
may

deep-lying
apparently

theox-??

;

est

mobilized

jumped from.

the airplane and that many??
interm ediate processing industries, y ?

labor and the probable great seven of the nine South American
increase in efficiency once: new republics, land I connections with y
machinery is introduced, -.y?•; ?•* three of - them- are?, non-existent
and with two others unsatisfacj
Steel
tory. In all Brazil there are only
21,750 miles of railway and 37,009 ;
y The existence of large deposits
of iron ore within her borders has miles of surfaced highway, with

deposits

decree which

that y >

be forgotten; however,

Brazil has

of j

meet these demands the industry
was

not f

down now, used to be among the
V The speed with which Brazil^. ?
highest in the world. As a result, industry continues to develop will .
once
present scarcities are alle¬ depend largely upon the degree; ^
viated, Brazil will be in a tough of success achieved in coping with
I
competitive situation. An analysis certain ? obstacles.
Although
in
*
made in 1910 may still be valid:
many
respects Brazil resembles
V

her. principal ; pur¬
chaser, has now signed up with
European
textile
makers
and

rural

agricultural
manufacturing and industrial
raw-material ; producing
state.
Finally, rubber, quartz, and cer*
tain critical minerals have been; y
encouraged to meet-war demands
of the-United States.
It should
a

over¬

the working population barely en¬
ters the cash market at all ex¬

and

The industry

production behind a tariff wall
which, .although somewhat scaled

ricultural

workers produced only 10 billion
cruzieros or $60 each to be shared
with their families. This 68% of

cart to

Commission
for

7.0,
..6.7

as 30,000,000 people are
virtually economic zeros with a
per
capita income far below
the $100 average for the coun¬
try, and hundreds of thousands
see
little more than $20 cash

many

point of view of a balanced
economy? The, new*state-encour?
aged enterprise—steel,- transpor-

19.8

•

'1,120

25.0

16J;

-31.9

If? 85

60.0??-

2.4'

percentagewise, for less of the
grand total, and that construction,
double the region to the north. paper and graphic arts, and proc¬
of ? raw
materials; have
ants.
The State of Sao Paulo, which essing
The number of industrial en¬ has been called the fastest grow¬ moved up into "big industry" size.
terprises has grown from 3,000 ing industrial region in the world, Furthermore, the rate of growth
to <70,000 from 1907 to 1940, arid alone produced 43%
of the na¬ of rubber and sundry manufac¬
the number of industrial work¬ tion's industrial output in 1938. tures has been little short of phe^
virtually every crop
known to man and support sev¬
eral hundred million inhabit¬
produce

one

are

170

65.0

C-.I 2.0*
/

Machinery

<70.0^ ?

35.1

Rubber goods

arts-iyi?:? 25.9 f

Sundries

but

produced, before the war, 85%
the nation's agricultural out¬
put and 88% of its manufactures;
$3.32 per acre and $51 per in¬

Paper and graphic

Processing of

handy the bid-established
processing, ap~,.
pareL and- shoes, and so forth—r
suffer
from
obsolete equipment
and possible overexpansion from;

the

orient Brazil from an
...

Wood Manufacturings^—i

Gerais

population of 44,000,000

500.0

Chemicals, drugs
Metallurgical

?
less

tation; chemicalst, plastics, etc.—,,;
a large-scale attempt
to re-

Foodstuffs

coastal

southern

down

area

less than 5%

and

The

only

northern
a

? 1943 '

Increase

Selected Industries:

region is
early stage
of development.
In 1938 it pro¬
duced $196 million—52 cents an

United States, Brazil today sup¬

ports

1943

1,000.7

of Total

Percent

1,565.0

than 3 cents per acre or $14 per

inhabitant.
also in

Millions of Dollars

Total

(Continued from page 4)

tentialities

the

Percent
••

Textiles, steel and rubber char-*
acterize, in a sense, a cross-section
of Brazil's industrial structure. On
industries—food

Growth of Selected Industries
-

;

Current

facture—-took another 25 % of total

potential purchasers of such prod¬
ucts as automobiles, washing ma¬
chines, ^electric refrigerators, ra¬
dios and similar goods in common

still

industries

four

ne¬

than 5%, roughly 2V2 mil¬
people (or perhaps 500,000
families) could be regarded as

Brazil is

The aggre¬

gate value of the products of the

lion

use

value of manufacture.

life and probably not

Rubber

The. development of rubber as

probably not more than 15% of
the population is able to buy any¬
cessities

al¬

an important industry was a war- y|
agricultural country;
project
involving the
•
coffee is still the single largest inspired
<
factor in her, economy*
Accord¬ feeding, protection and transportation of 50,000 workers to upper y■ j
ingly, her industries are primarily
Amazonian
reaches.
The
yield
engaged in simple conversion of reached
40,000
tons
annually, y,
agricultural raw materials.
The Rubber will possibly remain as a
..
foremost manufacturing industries protected strategic industry. The
government recently bought' out
:
in 1938 were food manufacturing
the Ford plantation for $250,000
,
and textiles.
In that year these
and plans to spend over $1,000,two accounted for 58% of the 000 getting the industry into shape. ' V

fair to offer.
Today Brazil
220,000 automobiles (one per

Janeiro

■;

eminently

population), 330,000 telephones
and probably slightly over 1,200,000 radio receiving sets—(one per
36 population), mostly in the Rio
de

tools, in the past one of Brazil's
largest import items. ;
,<
' ' "i

efforts in that direction
being made, s Brazil is pre¬

are

mass-

some

for

manufacture

•;

and provide a
developing
the
machinery
and

products

foundation

di¬

from

far

self-sufficient,

can

though

the

show

present limitations
market

still

Industry

by far the prin¬
for imported con¬

cipal market
sumption '

and

versified

Total

wages are the

costs,

that

evident

constitute

must

thing

royal-.

ties

capita income of the top

per

income level must be sizable and

partment of Commerce states that

includ¬

ing agriculture.^.-

businessmen

to broaden markets.

$62.3

**?|4.4

Corporate Profits

rate.

Cent

Billions

have

the

metal

the spur of two wars
which provided markets for ex¬
ports and a temporary diminuation of competition imports.
fee,

200

1929-45

justments. The groups now most
aggressive in demanding a second
round of wage increases are for

income—it

total

economy

her

;

hardly be
over-.
stated, as it should make Brazil
self-sufficient in certain types of

by a progressive depreciation of

12,000
cruzieros—$700
a
year.
Similarly, only 6.3% of industrial
workers earned over $400 a year.
Since the aggregate of profits and
rents
was
quite large—28% of

general vj

Volta Redonda to Brazil's

promoted

steady record of growth

In Rio de Janeiro, in
38,000
people
re¬
income greater than

and

another

125,000 miles of

common

road,:
Brazil has a vast inland ?;
waterway, but as a rule only very ?<
shallow draft ships can be used. ?

The great trouble is - lack of ?
integration.Rails or roads run >
haphazardly a few miles into the
a
large plant at Volta Redonda. interior to service a mine or a ?
Towards this the U. S.: Export- factory, Terrain is such that cost
Import.'Bank advanced $45,000,000 per mile is prohibitive on new ?
*
to be; used in the purchase of lines and the population network
be
unprofitable.
Hence, y
U. S. equipment for installation in would
the plant. The mill, which has just airlines have assumed great im¬
begun operations^ is - to have ;a portance in Brazil, covering 56,000 '
capacity of 300,000 tons of steel miles; some of which is unserved V
and 50,000 tons of pig iron and by any other means: '-But so long ' •

the government organized the
National Steel Company to build
ure,

flourishing state. Its
ering two-thirds of all Brazil, is
machinery is badly in need of re¬
by a billion cruzieros than total placement, the bulk of. it being
undeveloped back-country with a
population of one to three persons agricultural income. While it is over 20 years old and non-auto¬
p&r square mile. The total value difficult to estimate the size of matic. Prospects for quick deliv-Z
1,000,000 as there / is lack of aground trans- ;
of its production in 1938 was un¬ this top-income group, a few fign ery of replacements are> dim J; An may^' be' expanded * , to
der $40 million, an average of less ures will demonstrate that it is official of the Textile Executive ; tons annually. The importance of portation inland; there can be no ?

Volume

165

Number 4556 AAA

THE COMMERCIAL & FINANCIAL CHRONICLE

27
substantial

industrial or agricultural development of the
hinterland; without such

ordinary times wood furnishes
the power fbr about 30% of Bra¬

development

there is

•

zil's

basis for the extension
of transport facilities.
Escape from
no

lines

rush

investment

settlers

similar

mileage.
for

power

has,

;-"It

Brazil is

rated

and

Brazil's effort toward

;

tion

dustrial

area.

sources

Primary

coal
Sim¬

vstilh foreign.,

are

ordinator

ilarly, despite recently discovered
oil

Baia, Brazil is dependent
imports for gasoline, fuel oil,

and petroleum
;

"
•

•

fairs

A '

A A-

;

lubricants.

•.

■

oyer' a

Transportation
Building construction

Manufacturing y

69.2

;

Mining and petroleum.,.'
iyyFishing A AAAA-AA
-- -

Lumbering,

;

paper,

20%

paid

the

30% retained

business

for two years and
deposited in the Banco do
Brazil, without interest, for two

virtually

31,9

tion of foreigners, particularly in¬
dustrial
workers.
This
policy,
which was probably adopted to

11.5

meet the serious conditions caused

prohibits

the

immigra¬

41.6

65.6

17.3

labor

the

decrees.

One

anti-foreignism
trend

towards

na¬

■

organizations.

quid pro quo for its benev¬
protection of industry, the
has

also

encouraged

increasing

major
imum

etc.

wages,

industrial

covered

areas

The

are

now

by minimum wage, max¬
hours,
vacation,
old-age

benefit and similar laws.

theless, labor lost

Never¬

steady battle
against the cost of living during
the war and current agitation is
a

considerable.

This

extensive

possible,

business

should act

colonies within^ her borders*
may now be relaxed.

47-3

en¬

The
latest
available
figures
apparently contradictory policy is
place trade-union membership at'
in fact not so—to
develop her in¬ 400,000.
Despite the decree of
terior
market,
Brazil
needs
a
1943 which
sharply limited col¬
higher wage level,
As long as lective
bargaining
and
which
profit margins are good and
large placed in the hands of the gov¬

by tight-knit Japanese and Ger¬

labor, both by broad measures en¬
couraging health and education
and also by laws
directly aimed

nur¬

tured

ing unbalance in the distribution
population.
At present Brazil

16.2

A.,

and

this

government

Government

has the Brazilian
Government en¬
couraged and protected capital,
but it has also fostered and

—,

Brazilian

concerned with Brazilian
economic life.
Since Brazil's in¬

but at the expense of an increas¬

Scientific apparatus A -Aa

The

migration from the relatively un¬
productive North is helping to

5:2

woodworkings:

olent

dustrial coming of age has been
In addition to a capital shortage
retarded, so to speak, the govern¬
problem, Brazil also faces a lack
ment is forced into a role of
of labor.
pa¬
Having no industrial
ternalism quite different from the
unemployed, Brazil must draw
American government's
position
workers
from
agricultural and
in~ U. S. development.
Not only
non-industrial
sources.
Internal

219,2
.

laws

closely

years.

150

seen

National Economic Policy

50%

189,2

series

aspect

followed by the United States.

Consumer goods

education

of
labor.
Beginnings
have been made in technical edu¬

profits must

excess

tax,

361.2

3.5

-A-,

540.7

Governments

housing,

ductivity

re¬

120
-

13.9

-• --

government tried to

240

69.2

-543.2

385

121.2

-•

Total

474

69.2

_____^_____.

-.——;

:■Agriculture

Af¬
need

will

New

155.7

—,_

;

Brazil

10-yeah period as follower

Used V

Power and communication

Inter-American

that

State

of Acapital)

its

inflow, nevertheless
the influence of foreign capital is
being steadily diminished by a '

pro¬

——(In Millions of Dollars)—— swell her industrial working force,

Type—

finds

equipment from the United States

.Even
'

■

but

of this must still be

fuel..
Domestic coal is of
quality and must be shipped
long distances by water to the in-

dramatic

equally real need is the scarcity
machinery and equipment. Most
imported and
Brazil expects to spend much of
her $600 million of gold and for¬
eign exchange in its acquisition.
An estimate, prepared by the Co¬

facing

moderniza¬

poor

■

♦

less

the

that

can

Another

and

begun

remittance

courage

Both

■

limited scale.

the public, it did
not meet with much success.

services

and health programs which should
be reflected in an increased

sell its stock to

•

before

Federal

have

though

tionalization.- ./>:,
/'; A'
So far, government's
cation, both for the profession and
ownership
or control has extended to waterat the shop level. The
government
This use of government invest¬ is attempting to reduce the rela¬ power, mining, petroleum, meat,
tive importance of
ing to offset the disinclination of
consumption railroads, banking and insurance.
With resources of great Usually, regulation is by the coun¬
the public to private securities has taxes.
cil or institute, or else conditions
been
facilitated
by
an
excess value, well suited to her new and
of
the
industry are specifically
profits law (bitterly opposed by expanding industries, Brazil may
described by decree.
well be treading the
business in Brazil) which provides
path once

our

approach normal levels."
>* A second great difficulty

Investment

capital has begun, al¬

by the government itself.
Al¬
though the project was widely ad¬
vertised
as
a
patriotic venture

realized

of domestic

old-

teed by the government) and half

many

sixth among the countries of the
jy. world in water
power.
Much of
throughout the it is in as
yet inaccessible areas
country that the railways must be
and development has been con¬
^ rfPaired and improved at the ear- fined almost
exclusively to Rio de
liest possible time.
One source
Janeiro, Sao Paulo and Minas
has estimated that not
less than
Gerais. At present Brazil's elec¬
y 500
new 'locomotives are
needed
tric power is rated at less than
and that other
rolling stock and 10% of an estimated
capacity of
,£'V equipment worth $25,000,000 must
24 million horsepower.
be obtained

Westward Movements.

age pension funds, for which they
received preferred stock guaran¬

also for machinery.

portance it

ports from the West.

Brazil, half by

semi-public bodies (such

Gaso¬

The general lack of fuel lends
to electric power the peculiar im¬

sudden

provide

cars and

:i;? this dilemma would seem to re;; quire either a long-range plan of
public

locomotive

lion subscribed in

deterrent

man

expansion

rising

;

couragement

ernment

level

wage

enterprise.

virtually complete pow-.
determination, the la¬

ers of wage

rather than

spur

bor

En¬

movement

vitality.
ample,
to

still

was

shows signs
able, for ex¬
considerable;

industry is ac¬
obtain
complished
by tariffs,
outright overtime rates as well as in¬
The shortage of labor is aggra¬ guarantees
and favoritism, rather
creased basic wages in
vated by a low level of skill. Sev¬
exchange
than by anti-labor legislation.* In
for job-freezing and deprivation
eral factors appear to account for a
word, the pattern of government of
certain other rights during the
this: the lack of educational train¬
action follows the 20th
Century war.
ing; and; apprentice training v is corporate pattern in
which each
particularly felt in the - shortage class is appeased rather than the : To sum up, the Brazilian Gov¬
of skilled workers, foremen,
engi¬ outright pre-capital policies of ernment; is increasingly closely
enmeshed in industry and labori
neers, etcwhich in turn lead to those industrial
countries which
;

Total

566.0

Some

this

haps 60%

equipment,

of that listed

U1,460

\k 2,026.0

However, the Decree Law of
Feb. 27, 1946, somewhat modifies

per*

used,

Will be acquired fromU, S. Gov¬

the restrictions

ernment stocks.

ment.

According to the

Brazilian Coordinator of Economic

on
capital move¬
According to this Decree,
be eligible for the benefits of

Mobilization, plans for the indus- the law, foreign capital must first
development- of BraziL will be recorded in a special register
require at least $2.5 billion and of the Banco do Brazil.
While
possibly < $4 billion within .the today, for the moment at least,
trial

;

next decade.

capital

repatriatable

un¬

The enormous demand for capi¬ limited quantity,:, until very re¬
tal goods leads, to another diffi¬ cently this was not so.
Some of
culty facing Brazil; The problem the more stringent regulations
pt raising capital. - In the past were;
AA'A,
A' AA A
Brazil's largest industrial enter¬ 1. Foreign capital invested in

■

,■

prises have been financed through
foreign capital, but there are dif¬
ficulties in the way of continuing
the system, v A long

history

;

change' control which lias

Bonds

depreciation" and

currency

Brazilian Government Internal

full,

ex¬
-ren*

tration

Brazil.

siderably

interest-

two years after its regis¬

derea it difficult if not
impossible
to remit prof its, abroad have. con¬

Other

with

the:

Banco

iff?).|f%

foreign

en¬

foreign capital

was

■

tion.

Exploit mines

3. Own

incentive

continued

low

gradual

evolution

the

pro¬

time, when the government prob¬
ductivity since labor; is "so mudi
ably considers the "capitalization"
cheaper than capital that there is
of Brazil as the
major problem at
no
attempt to economize on the
hand. Nevertheless,
despite ,a long
use of it,
or to replace it with
history of indifference (or because
machinery.
of it) tariff protection and
out¬
A related problem is that of
right help to favored industries
overall management. Brazil needs
cost accountants,
engineers' and

technicians.

plant

She:

needs

specialization

as¬

and

greater
a

have been

tional reliance
extreme

This

common.
on

that

was

1936 in¬

4. Establish

water power.

Brazilians by birth are a
jority of its members and

y
:

ercise

all

7. Operate
.

executive

any

ex¬

authority.
or

communication enterprise within the samezone.

Acquire
meters

land

within; 30

of;a

boundary
:

land

or live there without

authorization.
yy

kilo¬

national

-; •_ y,

V*?'",

",
*

.
.

•

Aty"*

••

of the

than
of

employees,

one-third

any

any class

receive

the

payroll

industrial,, commercial,

public

unless

there is

labor,...

utility

the
a

enterprise;

government

savings
6%, it is not

unnatural

that

manufacturing

finds

were

trans-

fers

of capital in which case
they would be transferable; at

20% per annum,
Whether Brazil will
current liberal

tighten her

policy towards
foreign bonds

patriation of
mains to be seen when her
rent export boom

The

need

would
means

be
of

existed.

for

less

foreign

acute

re¬

re^

cur¬

peters out,

capital
a

better

raising domestic capital

A Investment in

corporate

securities is looked
upon with dis¬
favor as opposed to
government
bonds or; land.
However,

profit

rates

have been very
large and
this attitude
may undergo change.
The mediam ratio of net
profits
invested

capital fon 256 trad¬
and industrial companies in
Sao Paulo in 1942
amounted to
34%, One third of the

ing

companies

showed

ratio

companies had

50%

;It is interesting to
Voltd Redonda

and

larger net profit

than invested capital.

■

value and

idea

Transfers above this limit

A'-

9. Constitute
more than one-third

face

deposits draw 4 to

presumably considered
:

ma-

transportation

to 8%

up
tered with the Banco do Brazil.

individuals in. 6omy. merce within" 150 miles of a
•V;:: national land boundary or es;' J tablish a company there unless
'

and

profits
in'amounts
to 8% of the capital regis¬

in Brazil¬

5. Establish banks or insurance
A companies unless alt shares a re
held by Brazilians.

6^ Engage

Interest, dividends

;

enter.-?-

and; all

executive
authority is
ian hand£.

duction industry. At present, when
Federal Government bonds pay 5

could be repatriated

." .prises unless a
majority of of¬
ficials
are
Brazilian

public-utility

foreign capital may be repatri¬

consequential reductions

conventional

profit

should run to 18%.
So long as
output is confined to exports and
a
limited array of goods for up¬
per income goods such high-price
policies are feasible, but they are

certainly a hindrance to the spread
of prosperity among the
people.
Further industrial advance would

be
facilitated
if
profits
were
based on larger volume and turn¬

rathe? than high margins.

over,

Finally, Brazil depends for tax
revenue

primarily

consump¬

tion and import levies. While such
taxes do not bear

obviously
have
and

shift

prod¬

rectly

from taxes which di¬

raise

the

price

goods

to be indicated.

speed and

efficiency with which

Highways

meet

are

these

obstacles.

being extended and

the transportation field

antees tbf fixed

invested; loans

return

capital

at low rates of in¬

terest, etc.

A typical example of
this sort may be seen in the 1932
decree' providing for the

evolution, so much
attempt to pull herself lip
by her own bootstraps. It is to be
expected, then, that the govern¬

ment, as a central initiator,
ordinator and underwriter of
tional
an

■

develop¬
industry. This
ten-year
exemption

granted'

from; import duties

machinery

required in the construction bf
plants and a 15-year exemption
from

certain

contracting

other

taxes. ' )■ The

companies,

turn,

agreed to maintain certain stand¬
ards of output, to
buy

only native

policy, will continue to play
A

A-:A-AaAA Conclusions
Brazil

the

-'/AA; 'A'

■

today is certainly past
point of transition from;

first

pastorap

almost feudal society
modern industrial one.
Yet

the

disadvantages

the

feudal

life remain to clutter up

way

interfere with the

and

scene

optimal development of industrial
resources.
Most, if not all, of the.
obstacles

which

have

tioned have been

been

men-::

least

aggra¬
Brazil is

vated

by the fact that
only recently a modern industrial
nation, and does; not as easily,
think

act

and

she

the

idiom

new

undoubtedly will

tweqty)

even ten years hence.,
y
V'
That Brazil will prosper in the

long

run

seems

certainty; that

she will have her ups and downs
in the short run seems
equally
definite.
Her political: scene is
.

never

quiet,

and from the eco¬
nomic point of view, no country,
whose development hinges on for¬
eign trade can expect an unevent¬

raw

ful

ment

force for

the eventual emergence

materials, to permit govern¬
supervision, to employ 80%
native Brazilians, etc.
V:,
A

future.
Brazil

But

the

underlying

truly great nation

The

decree

showed results, in

the establishment of

some

lies in the activation of the "eco¬

cement

plants.

late
and

regu¬

standards, inspect conditions
generally

tect the

encourage and pro¬

industry in question. Such

thoroughly

bodies also foster the increasingly

Oil is being produced

national and anti-foreign feelings
of

industry.
•

-1*

'•

...

vast

make up

such

majority of the citizenry.

The progress Brazil has thus far

Government supervision
usually
takes place through "institutes" or

try—government bodies

zeros" who

nomic

the
a

largest Brazilian

made

spite

has

internal

been

and

market.

izes and by
as

accomplished

not

because

This

she

in
her

real¬

national policy as well

by economic action she is try¬

ing to integrate the great passive
masses

and

into

the

commercial framework. The speed
with

which

she

manages

this should be the index

by which

originally fftoj& j
Although today Brazil eagerly we measure her attainment to
Shortage of Brazilian financed
by the U, S. ExportThn-Arailmad.(to 4he Bolivian frontier
.desires foreign capital and has goal of mature, self-sufficient
I:A';-'v..-"AAAi
A/A:Ac. port Bank and
remaining $25 mil-- isi being' pushed to ease fuel im¬
taken steps (such as those relating progressive industrialism.
.

co¬
na¬

ever-increasing role in Brazil's

economy.
A

ment of the cement

•'

was

en¬

councils which act as;
joint indus¬

impossible to predict the

Brazil will

time

one

joyed — and many still enjoy—
special privileges; subsidies, guar¬

business as

income

effect

away

seems

taxes, they
raising prices
lowering mass'.demand.
A
the

A. explored.

note that the

the

industries have at

historical

the right of repatriation
only at the rate of a maximum

ated,

tradi¬

high tariffs

even

industrialization,

Brazil's attempt to become a major
industrial power is not the result

present

sured

•

direct newspapers

magazines.

;

since it is the central and dynamic
factor in Brazil's

productivity, bad ' manage¬ had their growing pains sooner.
ment, and high cost. "In addition,
Originally, the government's at¬
the; general low level Aof wages
titude towards capital growth was
reduces the general standard of
one
of disinterest and
even disliving and: generalf productivity.
Low wage ratep also\ provider an apprpval. This attitude, underwent;

closely interwoven i n d u s t r i a 1 ucts of no domestic
importance
thusiasm.
fabric. In addition, the price pol¬ brought
angry protestations from
:
icy of Brazilian industry may now Brazilian,
of 20% per anpum.
Furthermore,: a c c ord i n g-, "to
manufacturers.
i
f "A
be ready for
Brazilian law, foreigners may not: Si
overhauling. A tra¬
Like tariff
The;Superiptendency of Money dition of
protection, direct as¬
overly high rates of re¬ sistance to
li. Establish corporations without
and Credit could increase the
industry is a policy of
turn is not entirely compatible
specific government authorizalong standing. Most of the leading
A minimum period within which with Brazil's
hoped-for mass pro¬
dampened
.

other fixed

bearing obligations was. guaranteed immediate transfer in

low

;

her
and

(Continued from
the

are

points

three

undoubtedly
other
but
the

agreement,

have

mentioned

the most important.

may

;;/'44;^j,^

Favorable Factors

;

..j'

struction

page

hectic pace of recent months.

There

Those who

impressed 'With

are

the favorable outlook point % the
many

factors that have been wide¬

discussed, including the large

deferred

demand for

all

goods, the savings that
able

the

present

trade

support

which

types of
avail¬

are

continuation of

boom,
will

the

foreign

needed

build

; up
devastated regions in
parts of the world, the im¬
proved labor outlook,
and the
current improvement in produc¬

many

tivity of labor.
but

present,
for
to

Thursday; January 2, ; 1947 :

THE, COMMERCIAL & FINANCIAL CHRONICLE

our

the

Other factors are
this should suffice

point. This reasoning leads
conclusion

that

may

as
schools,
hospitals, impossible for consumption to be
churches, and similar maintained at the earlier volume.
for which there is a great In fact, the physical volume of
';■■■/
i-j:
'""■//
' consumption has been declining
for a number of months.
/
1;
analying the prospects, for

theatres,
items

need.

■

producers durable .equipment, in¬
cluding
construtcion,
we
must
bear in mind the impact of rising
It

costs.

difficult

Consumers'

Power?

condition

This

prevails at
a
time when industry is just getting
significant, but does not necessar¬
in its stride in turning out huge
ily lead to the conclusion that we
quantities of consumers durable
are now starting on another bull
goods.' The question that we have
market.
r;

believe

Buying

;

that the present high

costs are pot
having an adverse effect upon the
prospective commitments of in¬
dustry. In fact, many corporations
are
already scanning their bud¬
gets and reducing commitments
for capital outlays.;'

answer

how

the

maintain

d high

level of

con¬

major1 support

of inventories.

enjoy

volume, but ' we
period of great

of the economic

Prices in 1947

instalment and other personal

Looking
seems

ket

ahead

come

into

1947

completed its decline

faced

with

readjustments be¬
i d

e n

to' - question,

open

opinion chances

long period of
dull prices, not far from the lows

are

e v

Whether

prices will then recede to new lows

to me that if the stock mar¬

has

further moderate .recovery

during the early part of the year
and then decline again when some

are

but

so.

that they will

debts will

Inventories

are

not high in re¬

lation to the present sales but the

inventory accumulation tMt has
been going on is an important
source
of employment and pay¬

help, but obviously this
temporary measure. Looking

ahead into 1947 it
that

income

viduals

will

unlikely

seems

payments
increase

indi¬

much

from

the present, level, particularly in
the
light of prospective lower

knows, in¬
have a temporary readjustment in
ventories are unbalanced and onde
farm prices and lower farm in¬
prices and perhaps a slight reces¬
the missing part or material is ob¬
come: which
sion in business
may at least pffset
should

least

consumer

will be able to take all these goods
off the market and yet continue

the sumption' of soft goods and serv¬
ices. No doubt a further increase
present boom is the accumulation
Another

prices that may take place is ap- reached in September .and" Oc¬
other question. Today stocks are tober/before any dynamic move-i
selling at widely varying prices in ment can - set in on the; upside. In
relation
to
long
term
values. the light of the really extraor-"
Some stocks, such as General Mo¬ dina'fy earnings that \yiU be shown
tors and Westinghouse Electric, are in the fourth quarter of this year
at reasonable prices, while many and the first quarter of next year,
other stocks are still high. • The with the possibility that these exfact that the declines were so pre¬ traordinary earnings will continue
cipitous and, in the case of many into the summer, it seems more
stock?, were close to the entire reasonable to me to expect thai
stock market will show at
decline of past bear markets, is the

rolls.

Also,

as everyone

tained in volume there will be a

any.

'improvement

in'; wages

;>"//

power

(Continued from page 2)

with confidence

enthut

that these conditions will not pre¬

factor

vail, because I approach the whole
subject of judging the future with
a spirit of i
modesty. On the other
Land, personally I: wish to make

Effect

Labor -Management
Difficulties

and

boom.

that'

the

supported

has

f '

sumers

durable goods, competition

Will surely be keen and prices will

people in aver¬

prior to the war is with
us to stay
until the government
pays off substantial amounts of its
bonds held
by the fcommercial
banks, or until those banks sell

in shipments I of salaries that
may .occur.
/This
Labor-management difficulties
a corresponding in¬
means
in effect that, unless the have led to
public suspicion of
employment and: wages. consumer
If this is so, then the sharp de¬
goes ; into. debt
on
a the value and worth of the man¬
Much of the inventory accumula¬
cline in the stock market obvious¬
greater scale than he is doing now ufacturer's
product; they have led
tion is in consumers durable goods
it will be more and more difficult to a
ly is temporary, and represents no
great deal of unnecessary and
which will come on the market
for him to absorb the prospective bitter ill
more than the exaggerated tech¬
will; and they have led
next year.
It may well be that
nical correction of
an
over-in¬
output of consumers
goods
at to employer timidity and em¬
these inventories will become a
flated
market
in
present prices. This will lead to ployee hostility. All of these add
many
stocks. burden
during any period of de¬ a
continuation
Stock prices under these condi¬
of
the
present up to lags in production, and de¬
clining prices or volume of busi¬ stickiness in
tions Should do very much better
many consumer mar¬ ferred purchases.
*
1
ness/ At least the cessation of in¬
kets. Beyond this,
and before long go to new highs.
however, once
If, in such an atmosphere, busi¬
ventory accumulation would re¬ we
get going full blast in con¬
I am the last one to maintain move- one
ness
leaders and the makers of
important
economic
increase

large

prosperity for several years tb goods without
come.
\ A/;;?;■,/,/
;\:J441 /4,44v: crease in

the hands of the
age years

bonds

and

finance;

continue

these

such

volumes

non-banking

Either

investors.

methods

re¬

ducing the present inflated money
supply is possible, but neither is

probable
Not
The

Depression, Situation

situation

sion.

today

incidents

The

does

not

condition of depres¬

represent a

public opinion in the field of busi¬
ness

substantial

off

business

activity and the inflation are vis¬
Both to enjoy

ible all around us.

begin to drop even in the case of
broadcast an expectation of de¬ the fruits of boom and to face the
it is doubtful to'; me these
items that have been hard
export trade balance - can:
pression or recession; there is- a dangers of inflation, we need con¬
.to get. It would be a. comforting
continue quite as favorable as it
great likelihood that: they will fidence in our representatives in
thought to believe with confidence
certain observations that at least
is at the present time. UNRRA is
bring on just the reaction that government, in our representa¬
that we can make a readjustment
should bring a note of caution into
they view with such horror; they tives in labor, and in management,
{I
'J
i/'.-- * 'ft
V
already scaling down operations
a jWsoft goods boom"; to. fa,
the mind of anyone who takes and next
Will cause consumers to delay
year Europe may take
: There is much more reason for
"hard goods bpom" In the con¬
such a bullish position. There are
purchasing, and accordingly ne¬
substantially less of many prod¬
sumer
worry in the possibility that our
goods .'field/ Perhaps we cessitate a
in my mind several economic de¬
ucts.;; This will also diminish one
drop in production and bankers and fiscal authorities will
velopments
which
suggest that of the factors that has been im¬ can, but dpe surely should pause attendant unemployment;'^ ' / ; 1
fail to turn their attention to the'!
and thirlk twice before reaching
regardless of the long-term futu're
It is quite possible for us to talk control
portant in maintaining the present such a
of { inflationary f forces
conclusion. Lower prices
covering a period of several years, boom. '
'
•
/
1 "
and
others into such which have
and some decline in production in ourselves
developed and are
we may well be in for at least a
Finally, government spending is
lack of confidence as to cause a still
being allowed to run free
period of readjustment in prices still declining and will continue to any important field in our econ¬
temporary setback in what other¬ than there is in thexwidely broad¬
omy can easily lepd to a changed
and production lasting a number
do so for- some time ahead, al¬
wise would have been activity and cast
predictions on- the part of
psychology on the part of both
of months.
though the decline will be more
prosperity. The setback, however, strike-gloomy businessmen that
industry and the consumer. This
moderate from now on.
During
would be the result of a general business is due for a setback,
in turn can easily encourage in¬
Readjustment Factors
the war government spending was
frame of mind and not of an eco¬
We have inflated our currency.
First; of all; .we must remember the dominating influence in our dustry to reduce their programs
nomic ^rend. ; s f.■ f ■
•:
m,
for; new capital investments and to
That is accomplished to the degree
that at the present time capital
economy and it is still of substan¬
prepare for "hard times," reduc¬
Confkiebse,- <?n the part ^f both of $165 billions. Our: paper money
investments by industry in ma¬ tial
importance. While the reduc¬
chinery, and equipment are run¬ tion in government spending may ing overhead and following a pol¬ producer J and • buyer, carries ,a is no longer convertible into gold
tremendous weight in matters that and our bank
deposits are only
ning at an extremely high rate, not be large it is on the negative icy which will bring further de¬
flation. Similarly, once prices be¬ appear superficially to be purely convertible into paper money. The
either in the light of history, or in
side as far as its influence on the
gin to go down, there can easily within the realm of fact and fig¬ purchasing value of our dollar
relation to the output of consumer
volume of business and consump¬
develop in the minds of consum¬ ure economics. Confidence is vital even in the near future depends
goods, or on the basis of any tion is concerned.
ers
a
tendency to postpone pur¬ as regards all plans and commit¬ on factors hard or impossible to
other yardstick. This is quite evi¬
The Timing
chases, particularly if the outlook ments for the future like plant predict. Whether we suffer or
dent from the enormous pile of
for
maintenance
of
high wage expansion, improvement of equip¬ escape the ruinous consequences
orders on the books of most cor¬
All-in-all, it seems to me that
porations engaged in the machin- some of: the items that go into rates and employment begins to ment/home purchase and renova¬ of this inflated and paper cur¬
be less clearly defined.
tion, and credit buying. The man¬ rency depends on confidence or
ery and allied industries, I know what we commonly call "capital
ufacturer will inot expand if he the lack of it. Inflation is not
; that when capital investments in formation" are close to their1 peaks ? The consumer goods section of
envisions a tightening market; he what
happens to prices and wages;
plant and equipment1 run at an and it is just a matter of-how long our ecorlomy is, therefore, not
will
{pot expand, if he fears con¬ it's what happens to money. When
abnormally high level it is often they will continue at the present only running at a boom level just
tinuous li labor
difficulties.
The we no
time to watch out.
longer have confidence in
Furthermore, rate. 2- In the case of 'inventories, as: the section of producers/dur¬
consumer will not buy if he lacks
the future
value of money we
orders
for
producers
durable the peak can not be many months able equipment, but there are de¬
faith jn a product, if he fears that avoid future commitments
equipment have increased at a off. 1 In the case of producers dur¬ velopments in the consumer goods
pay¬
his income will not remain suf¬
able In that money.' We buy equi¬
starling rate since V-J Day, and able equipment, ? including .con¬ fields which surely lead me to
ficiently high to sustain present ties in land or stocks or- we buy:
have reached a level which may
wonder about the continuation of
struction, there are already signs
expenditures, and he will not buy commodities. We buy them not
be close to a turning point.. Nor¬
that we are close to a peak.
In present conditions for any length on credit unless he has reason to
because we Want them now or
mally these orders do not stay up the case of foreign trade, it • is of time;
;'l/£
believe, that his salary is secure..
; at
think we" may need them in the
a
high level but turn down¬ possible that our present extreme¬
Whole Economy ls Vulnerable
wards after such a sharp advance.
;; • The carryover of some of the future. We buy them because we
ly favorable. balance may con¬
From the point of view of the
The whole economy, therefore,, 194C attitude of suspicion, timid¬ don't want {to keep the money.
tinue, but there is some doubt. In
stock
market, a down-turn
in the case of government spending, seems to me to be in a position ity, and distrust might well make That- is the flight from money
these orders is likely to be dis¬
which
puts inflation into high
from i which it • can not improve for a degree of hesitation,; and
we know that that is still declin¬
couraging; I recognize the strong ing.
greatly1 and from which a read¬ perhaps some recession,; in busi¬ gear. It catapults prices, it multi¬
'
^
position of many of the industries
can
easily ness activity; but it is my opinion plies the supply of money which
; Let us, take a; look at another justment - downward
that it cannot last long because
; sunrlying ■ producers
produces a whirlwind of activity
durable section
of
our
economy — that take place'somp'time in the next
V goods such
inherent / optimism r of
the ending in a crash; Then comes
as, for example, the dealing with consumers goods and 12 or 18 months. How far this re¬ the

Thirdly,

that

our

■:

■{_/

i»i

■

farm

implement and office equips
industries, and yet is i it
normal to regard all of these in¬

merit

dustries, in

very strong position
any time their order
books are
filled/. As far as these companies
are concerned
the good news "is
out, so to speak. I also recognize
the need for'many types of con¬

struction

and

yet

find indus¬

trial and commercial construction
at

extremely high levels, and that

leads

to wonder how much im¬

provement

can

be expected over
The only part

the next year or so.

of the construction

industry which

is really low is public works and

public and

semi-public

building^

which includes such types of

con^

the

adjustment may go, if it cbmes, American! people and. their pres¬
obviously impossible to tell at ent buying power will absorb and
the present: time, but once it starts dissipate it. The increasing supe¬
huge spending spree, so far, to a
it could. proceed for a number of riority of postwar products will
great extent, concentrated in soft
become
more
evident,
govern¬
goods. The rate of individual sav¬ months. The size of our boom and
ings has: been going dowh and is the rhany maladjustments that ment's attitude towards - internal
now1
beloW^#5rmal;; i instalment were created during the war and unrest, /will become more \ con¬
credit is increasing rapidly;, mort¬ after the warfare of a character structive, and the need for. new.,
that could result in
more
than reliable goods wilj become greater
gage loans on residential building
services.'Here
consumer

find

the

that

midst

the

just

siderable section of the

increasing rapidly; and a con¬
population
has found it necessary to use ac¬
cumulated savings as indicated by
the greater redemptions than sales

minor
than

price

decline

few/months

and
of

day by day.

-/)!»<

Air Mail to Far East
Alfclert Goldman

nounced

Dec.

that

de¬
>" >

•

Postmaster

an-,

corre¬

spondence for Taiwan (Formosa)
Chankiangshih (Kwangchowwan), may be accepted for trans¬
mission by
air mail subject to

and

are

depression,': and.'What

pression!

is'

V'"':

only
the conditions and upon prepay¬
moderately reduced level of pro¬ be
satisfied
by
manufacturing,
ment of the air-mail postage ap¬
duction.:
,///'. '.C
■ ■/'• transportation,
and general busi¬
plicable to China.
:
:
;
It, is- quite clear/that the. stock ness activity. There is no reason
of "E" Bonds., We hear a lqt abqut iparkeit, has
lb believe1'that1 It will be impos¬ 4' The announcement added that
) $$cpup;t§4j ^cJLfi
sible for the majority of the popu- air mail for China must not ex¬
buyer's resistance to high pricqs] readjustment
Which' is the garden variety ex¬ extent,
lation to satisfy the desires(,that ceed 2. ounces in weight a(nd the
lead to the demand. A money sup¬ postage, is 25 cents for each hqlf
pression for the idea that prices, market
have risen sufficiently to make it readjustmentsr ih? business -7:
ply four times that which was inJ ounce or fraction ^ thereof^ *■
ri r/s
Mi*<¥■*.%&"J''. ■"! '■
^"t;•//■ v; •
'
Uvu-^C'M-. vs.
a

The demand for goucL can

•

■■

V/i"l

7 .'/!«/'

r^f"

•..

Number 4556

[Volume 165

V'-r. .1,

-r\

THE COMMERCIAL & FINANCIAL
CHRONICLE

.>»•*.*.

.K.

_•

it.

••ft/'

;

(Continued from

member-dealers

page 3)
(Continued from first page)
//■'/■/
brokers contravene it, they are subject to whole, the improvement of trans¬

By what native doctrine this special privilege and these
financial advantages were meted out to a fractional segment
a>f the dealers and brokers in this country, we have pever
been able to discover.
!
Such

remember

increase in freight rates. All these

/J"

ment

things

are

enough to recall those days the
question whether the period im¬
mediately ahead of us will be
reminiscent

provision makes possible

It is

•

basically unsound, and

type of preferential legis¬

lation from which emanates distrust add discontent.
Because of

this

have

always advocated, and still
advocate, the repeal of the Maloney Act. v

Until such repeal is realized, the Board of Governors
of the NASD, in our opirtion, has the duty, at jits

January; of formulating

meeting in
amendment to the Association's

rules for submission to the members, which insofar as the
NASD is concerned would completely emasculate the above
un-American preferences by doing away with the existing

rule that prohibits a member from giving a discount to

non-member.

,' '

[

We want our position to be clearly understood. In our
'opinion the monopolistic practices advocated by the above
section are altogether illegal,;
Repeal is the remedy since there is an existing hesitancy
to test the law due to fear of
reprisals.
/ '
\
-

We advocate NASD Board action

„

means

post-war boom.
First, by the late spring of 1920,
though
shortages
characterized
the European
economy, the Euro¬
countries

pean

ready

dollars/ and many of them were
practically out of gold. It was not
until 1924 that their
ability, to
borrow in this
country on a sub¬
stantial scale was restored. This
time Europe is not
put of dollars.
I see no, chance that the
export
market will fail to be
very

for at least

;

1. The subjects

tr7

uation.

Power in the SEC to

'//I;

compel rule making by

-'tional Securities Association.

'*'

•

§1, ;7

/•

(.'!
Na-

terminate its existence.

or may

:,vj;t,;IiThe provisions\of the Maloney

theI consequent
operation of the SEC and the NASD as two
statutory aux¬
iliary policemen, and the segmental monopolistic' privileges
and advantages that make
membership in the NASD compulAct,

;

sory—all this labels as ludicrous the claim that membership
in NASD is
voluntary.
The position of Wallace
of the

NASD, is awkward.

statement.

Here
amount

Federal
what

com¬

* 8%

Reserve

System,

belatedly,

now

some¬

Fulton, the Executive Director
This, of course, is an under¬

;

is,

of which

an
no

executive,
one

with

seems

large salary—the

know

Chairman

on,; a

'transcontinental

tour

into

the

various

districts.

land where the spend-lend
policy
got its
theoretical formulation.
This time the Reserve

supporter

treasury-cheap

money policy and has committed
itself to the maintenance of the

present rate structure
ment bonds for the

govern¬

indefinite fu¬

ture, regardless of whether the
budget is balanced or not, or
whether

have1 inflation

flation- ; Not

traditional

policy

;

<aside;

has* thfe

instrument

against

been laid

de¬

chief

junkets, thrpugh the medium of

ceptions, concentrated efforts

are

re¬

made to procure/ broker¬

s-dealer acceptance of the'alien Maloney Act and
philosophy.

NASD

> ...This Executive Director, the
perpetuation of whose job
is dependent upon the perpetuation of a
piece of un-Ameri¬
can
legislation, what sum is he receiving as a salary?

anyway,'

Motors Contribution to the main¬
tenance
of
purchasing power!"
This

was

time when by every

test that experience

chasing

power

time

impending

the

suggests,

was

sive than it had

pur¬

explains

Washington econ¬
omists a year ago when they pre¬
dicted eight million unemployed
by March. Now a large section of
the business community, particu¬
larly the distribution sector, is, in
my, judgment, repeating that er¬
In both cases, forecasters un-

ror.

der-estimate the dammed-up pur¬

chasing

of the community,

power

and the extent to which ever since

1941, restraint

in the

use

pur¬

chasing power has been due to
shortages of the things that people
to buy. Demand revives as
supply reappears.
This applies
want

both

individual

demands

for

consumption goods and to indus¬
trial

demands

for

capital

prevent

What, then,

the danger spots
in business; is
threatening? A decline of agricul¬
tural prices will never throw an
if

are

down-trend

industrialized economy into a tail-

stages

of every

industrial boom. No de¬

flation in

history

started in

ever

cheap-money period—although

the

admitted that in

tightening

was very

1937

moderate.

third

Phobia

difference

•

between

the present situation and the boom
of 1920 lies in the
general ex¬

pectation

the

country 'with

,192Q,
the
commodity price
level, like the stock price level
of 1929, was
generally accepted
as

permanent. Prices had gone up

long that they were expected
to keep going up
indefinitely, or
at least to stay up.
Now, on the
other hand, all
English-speaking
so

countries

are

sion-minded.

thoroughly; - depres¬
The

long

deflation

her

prices. Nor will strikes
and
wage
increases throw the
economy into a tail-spin. Rather,
they will prolong the period of
shortages and accentuate the price
rise. .Industrial

relations

are

al¬

bad in boom times. The dan¬
ger in excessive wage increases
is not that they will shorten the
boom, but that when it, (Joes end
they will make the succeedihg de-;
ways

muchr the worse, because

be aggravated.
The

Inventory

Situation

7 The inventory situation,

how¬

can't be brushed off so casu¬
As I said a moment ago,

ever,

ally.

there is at least

superficial re¬
semblance to 1920 in the present
inventory/ situation.
Since last
total

inventories have been

rising at(the rate of over one billion.dolj^s a month. Part of that
is due tofi price mark-up, or the
replacement of lower-priced; goods
With

higher-priced

off

•

it is

physical stocks,

uted

goods,; >but

genuine

increase

distrib¬

all along the line from raw

materials

finished

goods,

al¬

though it is notoriously tmeven at
stage.

every
go on

Inventories

cannot

increasing forever, and this

raises the question

whether, when

stake.

fear of inflation which dominated

77^7/7

the

His position is, not unbiased:/;,'{

-J"'/'

When the Board of Governors of the NASD

January, it should realize

all of this.-

meets in

•1,-';;" > 77>n -r.

In view, of the current ■ trend
particularly, the Board
should take immediate action
along the line we have sug¬
;

gested.

:j777* 7-^

;;7

thinking

all Countries

current

sales

where else.

turies, and persisted in continental

two .to

'thirties. After six years of infla¬

tion, most of the institutions that
were

set up in the 'thirties to

com¬

promptly

automatically be absorbed

the Tate' 19th and early 20th cen¬

Europe clear down to the middle

will

three

ana

some¬

ip'ay estimate that

million-/ people

are

employed in producing for inven¬

don't

up.

have

ual

shift from

a soft-goods boom
construction and heavy-goods
boom.
There is a

huge backlog
only from housing
but from public
utilities, at least
telephone
and
electric
power,

of demand not

from deferred municipal
projects,
and from
industry, as well as au¬

tomobiles

and

other

hard goods.
A

able

Durable

shift
to

Goods

from

boom,

ago,

•

1920-23,

short,

severe

the

differ¬

situation then

situation

now

its

con¬

are

Europe has not

dollars and

said

think

between the

dur¬

and

was

made

depression.
the

inventory

only at the cost of
ences

Boom

construction

goods

while

consumers'

out

run

needs

are

still

acute. The Reserve System has not
put the screws on the banking
boom and has no apparent inten¬
tion

going

doing

Taxes

so.

now

being?

suggested*

public works

they
as

Federal

not

are

going to be
further; indeed, we shall

curtailed
be

fortunate if they
panded too soon.
•;

not

are

raised, though

may not be lowered as much

not

are

ex¬

The problem, therefore, is still
of preventing inflation rather

one

than staving off a collapse. Sub¬
ject, of course, to the entrance of
untimely new factors like an up¬
set in

international relations,

the

immediate1 outlook is "for a con¬
tinuation of high employment and
sellers' markets, but with increas¬

ing supplies of the goods that are
shortest./ Here/and
there,
of
course, there will be miscalcula¬
tions

and spotty surpluses'.
But
the pessimism that is
spreading in
the business
community, particu¬

cast of the government economists
a

ago.\ There is great danger

year

that it will divert attention, from
the major risk: of continued in¬

flation, and lead to premature
vival

re¬

government-expenditure
policies, - tax policies/- financial
control

good

measures

and

and so on

bad)

some

(some

that

were

worked out in the middle 'thirties
to combat

depression.

forget, the

old

Let

story

not

the

boy

who/for fun, cried "wolf, wolf,"
till everyone wrote him

perpetual
there

are

casts

false
many

alarm

off as

clock./ If

authoritative fore¬

slump in early spring

and it doesn't

come

through, after

the failure of last year's forecasts,
and

if, the

thing

same

happens

next Fall, we may create a chronic
a

belief that pros¬
a new era

of the late 'forties that will be

stubborn as the over-optimism of
the

late

'twenties

pessimism

and

the

late

over-

'thirties.

establish

claim to

leadership/;''

CONGRESS HAS A LIKE OPPORTUNITY.

;

cqnce

QjfLap

tenance

in .which/the

economy

important problem

adequate

the

main¬

purchasing

dustrial/ equipment,

lasted

for

over

etc.—which

six' years,

minor setbacks, of

course.

with

,/jrv

larly/in distribution lines, is, I
think, premature. It is the ex¬
pression ; of the same pessimistic
philosophy as the ill-fated'fore¬

skepticism and

Daily the securities industry is becoming more and bat deflation are still going con¬ covered the interval between the
cerns. The danger of excessive in¬
,more incensed by the
termination of an inventory boom
inequality;;pr£atedtforpugh;
dium of the
flation is still b^ibg treated as
just hhcithej development 6f a boom in
Maloney Act.
/
I'O .Jit.
hbfinterrupting the; sepe^goods—construction, in¬
7 Here the Board of Governors'has, an
Opportunity to

high demand that is based on both
high liquid savings and high in¬
comes.
To my mind,
the most
probable development is a grad¬

perity will last forever;

but short depression of 1921

been

tory

vere

to
or

restoration

over and above replacement
goods currently sold. The se¬

have
boim

think of as a normal sup¬
ply situation will not destroy the

in¬

Why doesn't he have the good sense to leave each
newly of the 'thirties has> created a de¬ the inventory curve flattens out,
elected Chairman of the Board of Governors of the NASD pression-phobia that is as close the extra labor that is
engaged, in
to being indestructible as was the
alone to a course of
independent action?
producing goods over and above
Mr! Fulton has

what

dustrial

June
A ; Depression
The

did

than

money markets which in the past
has characterized the late

prices

and

price

But

having both, but

trolling.

prices fall, and employment will

tightening

push

ties ;was built

the
true

price inflation. Either excessive
demand or deficient supply will

spin. The prosperity of the, 'twen¬
on

buy

not, be

may

have shortages to have

boom

the wages will o.o.t come down as

that

up.

and

have

The

positive influ¬

made

cannot

we.

The shortages, ex¬
cept in the goods haying
ja very
long production period, are being

goods.

Danger Spots

That

•

longer.

exces¬

of the

error

want

we.

much

obsession

deflation

store

money.

bybr been before

peace/ This

that

walk, into

what,

"General

flation

talks and

granted

credit
'

Everybody knows
yet

justified by the company's profit
prospects,
they f ought
to
be

booms

excessive

will be exercised if
necessary

ence

-only

reference to the economic future.

On these

if the

even

(two Governors

they don't know what he gets but believe it is $24',000 a
/'year)—who acts as the handmaiden of every
newly elected
Chairman,*; of'the Board of Governors,
accompanying ithe

April that

appears,

1919, and the Rer
System's influence became

it must be

last

com¬

cheap food for
anti-inflationary as soon as it was the urban population and a dis¬
free to have a
contented
policy. This time
agriculture. England's
we are
financing the boom, as we relative stability in the 'thirties
did the ;war, on
was
explained by the fact that
extremely cheap
money, creaper even than in Eng¬ foodstuffs, wool, and cotton fell

Walter Reuther's

presented to Gen¬
Motors turned out not to be

eral

was
applying the 19th century
technique of tight money to check

>say

basis, and concerns with the very
highest
credit
could
not
float
bonds below the 6% level.
The

|
In view of this shroud upon independent action, NASD
subserviency to SEC influence is completely understandable.

sold

System is

5. Power of life and death in the
SEC, for it may either
jS;withhold permission for the existence of a national

7/securities association,

1920, first class

paper

the end of

following:

which there must be rules.

777 4. Right,of review in the SEC and,-'- My' v '<

mercial

Supervisory power.by the SEC.

•

;

strong
year—probably two

three years. The second
differ7
relates to the financial sit¬

serve

•

Maloney Act is the com¬ sure upon them to do so/ The
plete domination of a national securities association by the Treasury's; insistence on e£sySecurities and Exchange Commission, which its
provisions money banking policy lasted only
until

f.,.'.•/'* Among the mandates in its provisions are the

out

run

inflation/ and the state of the
gold reserves was bringing pres¬

Another vicious feature of the

'set up.

had

the

fully realized its responsibility and shall have acted.

present

(

relief intermediate in form, until the Congress shall have
!

the

ence

and

I do not believe that
the inven¬

tory boom has run its course. Ac¬
cording to prewar ratios of inven¬
tory to sales, inventories are ac¬
tually low all along the line.

wage demands

reminiscent of 1919-20,
suggest-to observers mature

and

1920-21.
the creating of a schism
There are, however/ three out¬
throughout all Industry, were it to be applied to industry in
standing differences between the
general.
7' 'f7;/7?v:/7*7/^
first boom after the other war
a

support markets and
employment. You may

provide

portation service and the belated

disciplinary action by the Business Conduct Committees.

•

power

Then

point

when

out

you

signs

see

and

try

overpricing,

overaccumulation, and overbuild¬

ing,

one

will listen to

you.,

^./

•v-J

^-S"1

■■

time

7>,

more de¬
And the more

difficult it becomes to create again
smooth

working machine. ' At
every struggle of this
character, people's minds turn jtO'
some method to try to prevent a
recurrence, and on each occasion
plans are prepared, as was done
at the end of the 1914-1918 WUr,
when President Wilson, in addi¬
tion to the Treaties, proceeded to
propound, with others, the idea of
the League of Nations. Hopes were
raised, and unfortunately in that
case only led to disappointment.

the end

'■4;W

■

This

wide

has been

than

world¬

1914-1918

the

to fight her twice in 25 years. The

when

Moscow Conference will also deal
with the problem of what
occupa¬
tion forces should remain in Ger¬

New

War.

York

this

found

effec¬

pretty

tively.
The Veto

what is called the veto.

was

It has

been found

difficulty in
trials. To solve this dif¬
called a conference of

its early

ficulty
the'

five

see

While

permanent

members

code of conduct could be

established

the Five

by1

Powers.

could not then agree I
a code of conduct

such

sure

adopted in practice.

not

Turkish Empire followed. In this
the whole world was involved

abolishing the veto, but
trying to modify its use,
to let it serve the purpose for
which it was originally intended.
Bound up with international ac¬
tion, and the debris of war to
which I have already referred, an
enormous
amount of improviza-

far

tion has had to be done—for the

are

Allies, and the trouble

limited

the

and

many

Middle

the

was

Ger¬

against

war

East,

from which the dissolution of the

war

the Allies had

and

face

concentration, of

liberated

UNRRA, the International Relief

their satellites—and to liberate

domination.

■

known and with it

ever

difficult to

character

far

cerned,

been

of. slave
millions.
> Indeed, it would be true to say
that
was

vast

over-

scarcely

country is

have

policy
two

had

decide

to be. Having

was

wars,

have, de¬

construct

con¬

the

whole

us for our future security and
development that this instrument

village

there

areas

not affected

or a

should

was

but

with

human

tions

achieved,

and

which

disaster

humanity has been

ing.

material,

and

almost

t,,

Policy Based

debris,

costly

'■,

■.;^ I.'

would not yield to pressure for

propaganda

purposes

supply} all

the

ditions that the peacemakers

quired

had
to begin their work, and I ought
to explain that despite the im¬
mensity of the struggle, peace
making was being studied while
the
thundered over the
guns

V:V;.V'' -

earth.;-;■

were

like
great research groups operating
in different countries.
Then they
must be brought together, exam¬

ine

other's

each

whether

was

ideas

and

see

better operating instru¬

ment can be devised for the future

; to replace the one which broke
down at the outbreak of war. That
is

what

That is

being done.'

what the conferences during the
war and at Potsdam were trying
to. do.

But

everybody

likes his

own design.
The great difficulty
is when you come to put them to-

(

re¬
make

what

call

political

policy

conditions

such
a
character
that
will
achieve three purposes.
One is to
make unnecessary the use of na¬

And in

defects

first

thing

that

Instead of frontiers

bristling with
tain

mind

his

time

goes

on,

guns,

man

must at¬

state of peace in
of

which the

turned

towards

economic and cultural devel¬

limits

the possi¬

bility of raising the standard of
life of the great masses of the peo¬

ple who have

never yet had an
opportunity of enjoying to the full
all the advantages which modern

life offers.

which

tion

tasks

the

look for

the

Nations.

world

But there

debris

the

are

war

salva¬

United

immediate

accomplished

before

cleared

up.,

been

done

the

Ministers, be¬

ginning

with Italy and the exsatellite States of Germany.
We have devoted 98 meetings to

the

discussion

these

treaties.

which

and

created.

for this,

was

overrun

has

shall

conference,

I can only hope
Yugoslavs and the Ital¬

the

that

treaties

Another illustration

the

have
provided for
navigation • on this

freedom

Danube.

great waterway of vital interna¬
tional importance, a channel of
trade to many countries, and, ;if
used

aright,

source

health-giving

great

trade

development
for the whole territory. One other
illustration — The Tyrol. There
again we have relented, I believe,
irredentist

(' by

movement

promoting an agreement between

Italy and

Austria, which should

be of benefit

been

Alpine Powers.
different

will

you

races

can

the happiness and

freedom

the people. In every.' discussion I
keep before me the thought—Can
I turn this to the economic bene¬

fit and

prosperity of the common
people./ 'I urge the people of Eu¬
rope to; help by taking a broad
view., Yugoslavia has a great task
ahead,
I believe, cooperate to
possible extent. Italy,
injured as she is by the war, can
will,

the fullest

of the help of the rest of
She must herself provide will

sure

us.

and

leadership

own

the part of her

democratic

leaders,

she will

political

And

legs.

this

get

soon

the

her
Balkan
on

assured that

may be

they desire trade, they can have
it.
That is w;hy I am glad our
treaties provided for no discrim¬
ination,. The other task with which

have had to grapple is the fu¬
Great difficul

ture of Germany.

ties have arisen but

practical

have made

beginning

towards

their solution by fusing the Brit¬
and American zones on the

understanding that the other
zones will be welcome to join us
if they wish.
We are sharing the
cost 'of this fusing between the
United States and ourselves.. We

pooling

I warn

take

technical
will

allow the

Ger¬

Hitler

time.

drilled

his

people that it will take at least

generation; to get things right.
Education, wrongly used,/has a
disastrous effect oh peace making.
We are coming up against this
problem
continuously. UNESCO
should be a great help.; -■ ; - ;v
We have laid down
for

agenda

further

last three weeks of the
we

went

ahead.

meetings,

was

very

Council

Moscow

meeting
of ,the
Foreign Ministers in

March;

mous amount of work

at Moscow.-

be done

cheap

Middle

and

Europe.

the

Different Economic Systems

;

I?VV;No Barrier
'-Throughout

;;

.if:':?;

•

air these

negotia¬
colleagues and I. have
striving to find an approxi¬

tions,

aeen

mation of ideas between the
great
powers themselves. It is true that
we; represent - different economic
systems: America, a country of

free

enterprise, has shown

ingness
full

play

the

nance of

her

will¬

part' to

creation

the

mainte¬

and

sound and effective in¬

instrument,and

has

40-

treaty,'to make sure "of the
of
Germany'/ and
Japan; Soviet Russia,- who has
evolved an entirely different sys¬
tem, but Who has been invaded
years

been

which

hag

now

"
*

large area. It has laid the dust
of war, and will open
up a vista
of hope and progress to
many millions of
Southeast
Asians, who
a

V;7/V

thus ready to- take their place

are

and

suffered

which has

terrible

destruction

practically undone the

whole of the great economic work
she had accomplished between the
revolution

the Hitler5 attack,
has to recreate herself "again;

now

and

France, " who

has;: been invaded
three times, who has given to the

world

enduring principles of lib¬
erty and has. a deep culture and a
Wide literature.
France, too, is

inteUocking

world; China,
through such a
devastating period, still torn by
civil war, will yet unite and con*
tribute with her age-long phil¬
has

gone

osophy and experience; and Great
Britain, developing - rapidly her
social democratic state, with her
great
experience
and
having
learned the lessons of leadership
through the many .years of her
evolution has, with the Common¬
wealth, a great contribution ; to
make, and will still take her place
as a great power*' V
:/'? /
!

the modern

world.

All

these

developments illustrate the patient
policy since the end of the
have

all

heard

the'

wan

;

allega-

are;joined" too closely
policies with the " United V!In¬
states; that our relations with SoV
in

our

viet

Russia

they

not

are

should

*•>;/

that this *
•
course will retard the pacification
DV'f
of the world, and may lead to an- "*
other world war. My first answer V/V;
to these allegations is that Great r
Britain brings her mind to bear '
on
every problem on its merits.
She does hot -tie herself to
"any- ^ ]
body, except in regard to her ob- * T
ligations under the Charter, and

be;'

and

I think what I have

jusf said about
policies shows that we have a
mind and purpose df out own;'
};
our

disarmament

My second
hold

out: the hand

j
]

is that, W£

answer

friendship z

and cooperation to all, for we be-

;;

lieve profoundly that such friend-

;;
£>'.■;
I

ship and cooperation between the
Great Powers
on

which

is the

basis

surest

;

to build a peace

for all )
time." Soviet Russia, who is now ; )
recovering from4 the wounds of "
war; fully realized," I think,, at
New York that there was a great
desire

for complete understandihg, and that there is throughout

the world

readiness to cooperate

with her and

see

system in her

her develop her

own

way,

with the

.1T:|

recognition that others equally;
right, to their: own" way

have the
of life

,-v

In this
talk I have
tried to
sketch >;the
background against
which we are working for peace.
and shall

;

ing for several

years to come.

;

have to continue work-

£ !j

S<r

not be impatient.
We must,.
build slowly, striving for perfecv

tion.

For

makers

remember

are

the

peace-

|
;

building not only for

this generation but for generations
yet to come; V .

j
]

The

war has left two great
pow¬
preponderant— the United

ers

States

America

Russia.

Great

and

Soviet

Britain lies

mid-

Way in geography and way of life.

Whereas,

Soviet Russia

Foreign Investment
Protection

and? the

International Chamber of
Commerce issues interim

United States are land empires,
their metropolitan territory £ oc¬

cupying a vast area; Great Britain
and the Commonwealth are spread
over

the

seven seas.

"Can any one

believe that if the five great pow¬
ers

live in concord and harmony

recommendations

;

ITO'

Pending the publication in the
VV-';
spring 1947 of its full recommen¬
dation and

report

helped by the smaller
powers who are contributing their
energies and their hope, war is

vest

t,; £ the

possible at all?

and of the

and '

are

believe

have

entered

the

first stage of establishing concord

and harmony between the great
powers.
.What is the ground for
that belief?
the

Firsts

we are

first round

which

foreign, in¬ 'pfcInternational l'x{
Chamber of Commerce draws the
urgent attention of" governments

Trade

peace

Britain,

her- experi¬
say so without'

has, if I may
boa'sthig, much to give to others.
As examples of what we have

done:

Ours

were

the first

drafts

;;
V

tional capital

2. Provision

the

Charter; and

ence.

made

and

adoption of

a Code of Fair

Practice in the field of
.

foreign
ypv.u

investment; v.: V. •>

3. Suitable

machinery Should be

set up within the framework of
the ITO to
implement these
'

recommendations.

;;

;

■

v;v

apart from

the work of the peace making and

movements;

should

in
the Charter for the elaboration

of the treaties; ours the first draft
Of

i;v.v

the

future Charter of the International Trade Organization
should include a. section dealing
with the question of .interna-

with

ence,

Preparatory Committee

and

1. The

United Nations look to guide their
relations
and
keep the
peace.
Great

Employment Vto
following .three .points; V,:

are

restore

m e n

of the; International Conference on

agreed

the

the instru¬
normality after
the war.. Second, we are shaping
the
organization to which -the

treaties,

ments

labor where
same

agreement,

approved
by
the
Netherlands
States General, is a constructive
contribution to the pacification Of

tions that

half-starved

'
This ;;

You

rry,,/•...Av\:

Organization,

the

between

and constructive efforts of British

resources

regain his self-respect. But
the country that this will

•

Dutch and the Indonesians,

agreement

preparatory .work that has to pre¬
conference, and the enor¬

cede the

We shall create condi¬

tions which
man

un¬

mote

clear

and skill.

I cite only the Netherlands East
Indies, where British statesman¬
ship through two men, Lord Inverchapel and Lord Killearn, lent
its help and experience to
pro¬

derstand the enormous amount of

JVEy policy is to pew
m which
Who

cooperate
and which will reflect themselves
in

re¬

attempt

vto the wbole of the making her ^contribution to this

work to create' conditions
the

shaping of the United Nations Or¬
ganization, we have been pursuing
next,: at
our
Because
every
clause,
every
pacificatory and modernizing
which the whole economic, ahd
paragraph, has been contested and political future 6f
Germany "wir course,, in those parts of the world
judged by the test of whether if have to .be dealt with.
hpt; directly; affected by the Coun¬
We mus;
would ultimately fit in with the
cil of Foreign Ministers or by the
.avoid the creation of a cesspoq!
United Nations
greater organization.
During the
Why have they taken so long?.

intitiiwnnn'r f*r' if —r

has

Council of Foreign

the

improvements are

111

ians will seize this opportunity for

are

'£v>;:k':V '/

Thus, the permanent instrument

thai comes off

rope—Yugoslavs, Italians, Czecho¬
slovaks, Poles, Austrians, Hunga¬

should be

emerged

board is perfect,

ground

ish

for the creation of this institution
and while nothing

have created

a meeting
port where I hope
great - trade
will
develop
and
which if used rightly, will serve
at least 70 million people in Eu¬

zone,

design, or the League of
Nations, and the substitution in its
place of what is now known as the
United Nations, though no one
must imagine this is perfect.
•.*
There was an impelling force

the drawing

On the

other hand, by
the formation of an international

opment without fear. That is what
freedom from fear really means.
And the third purpose is to make
the great natural resources of the
world ' available
to
all.... There

Wilson

ian rule.

Hitler,

could under Slav rule, and as
as we could under Ital¬

few Slavs

countries

was a realization of
of what I will call

left as few of the Italians

now
we

ful purposes.

treaties

happily

so important?
Well, it Is where the Latin and
Slav meet, where for centuries
they have struggled.
We have

is; done,

gether and try to make one work¬
vThe

broadcast, but

good deal about

Trieste.Why is it

that regard, if international pol¬
icy wins, then all- scientific de¬
velopment will be used forf peace¬

The peace treaties are one of these
tasks.
The
preparation of the

have heard

you

and

create

able machine.

;

with in detail in

of economic reconstruction

tional armaments at all.

elsewhere

information

and get them working smoothly
again is to have a plan, just as an
engineer, when contemplating a
new machine, begins in the draw¬
ing office. You have to think out
every detail, and while we were
doing that in our Commonwealth,

Governments

ready

got to

tial in creating a new machine to
regulate
international
relations

thinking it out; too.

would

by the Charter

conditions

To make peace, the first essen¬

finalize her position by a new
ixeaty.- When you see the agenda

Succeeded, and the treaties
for" signature.
From
them I take just a few illustra¬
tions.
They are too long to deal
are

this instrument effective. We have

First Essential of Peace

yearn¬

fy.: ;VJ;\';

Effective U. N.

the human mind to appreciate or
understand.
It was in these con¬

•

■\{

have made it clear that while

beyond

■

should

greater

mountain

and

home that

In the ena, victory was

effective

give us and the rest of the world
the security for which for genera¬

lesser degree.

■"

Eco*

the

Council, Health
Organizations, and

our

cided

es-

labor running into many

;;

up.
discuss

also

have

what

introduction

the

camp,

shall

Austria;

has

cooperation.

and

suspicion

caused

and

made confidence

civil government

gradually be built

can

Moscow

triumphed,, ; And I
am
fully convinced that under¬
standing will grow. For at last we

patience

nomic and Social

been taken to deal with disarma¬

overshadowed peace plan¬

ning

ternational

tablish.
v V'<■ • 'vV'OV'-; our future relationships with the
fn its train all this brought with world on the basis of the United
it the terror of the concentration Nations. It is of prime importance

very

indeed offered to enter into

ment.

warfare and other devilish devices

glad that

that

per¬

now, during the latest meeting of
the Assembly, the first steps have

plosive to the rocket and atomic
energy, and with a perfection, although not used, of bacteriological
which

there

But I

rians and Swiss.

manent

velopment for the purposes of war
greater than in any previous pe¬
riod—proceeding from high ex¬

and how

many,

It has been

war.

and Education

intensification of scientific de¬

mosphere of the immediate after¬

born other instruments of

its train the most devastating de¬
struction

grapple With immediate prob¬
lems of worldj,!disorder.
Out of
the United Nations have also been

carried in

war

All have

on.

This world-wide

through

countries,

Organizations and

greater area from the enemy's

far

are

Italy, Japan and

more
powerful
foes—Germany,

working in the at¬

were

trying time.

One of the parts of this instru¬
ment

change to the earlier
stages, when passions were high
and misunderstandings great* and

math of

operating

process

will

Then the countries of the Far East
were

that-Ger¬

ensure

welcome

war

must

many can never again be a men¬
ace to the Allies, who have had

achieving victory, the

struction is caused.

Thursday, January 2, 1947

effected, modifications will be in¬
troduced, and that is what States¬
men are doing.
At the conference

(Continued from page 11)

-•

THE COMMERCIAL & FINANCIAL CHRONICLE

have interests

influ¬

Chemical Bank Paying
Agent for Uruguay

Chemical Bank & Trust Co. has" •
been appointed
paying agent for'
the consolidated debt 3V2% Ster'

ling bonds; 5%
and 5%

the

gold bonds 1914
external gold bonds 1919*'
Oriental Republic of

Uruguay.

Volume

Number 4556

165

THE COMMERCIAL & FINANCIAL
CHRONICLE
of

Nationalization Threat Slows

Foreign Investment in Italy

displayed

interest

dustries.

The

several

Swiss

have-

Facts would induce

in¬

lieve

pur¬

Genoa.

which
Both.

Milano

are

Swedish

and

and
Nor¬

forced

speeches

and

talks .* caused
of

shipping inter¬

Recostruzione

(IRI), a department of
the Ministry of Finance, and ef¬
forts are being made to preserve
the cooperation of, private owners.

the

Utterances of this type have taken
in Milan where meetings
discuss

the

merits

ment 7 owned "'
owned

main

versus y

The Chances for Nationalization

govern¬

Under these

privately-

industry put the question
the public./ Opinions afe

before

strong

both

feature

sides.
the

circumstances, it is

evident that one is induced to ask

the

upon

For

and

the

Italian

trade

industry being actually national¬
ized, or whether the Italian Gov¬

overlooked, namely, that the
Italian Treasury is not in a-posi¬
tion to take on additional burdens,

ernment

itself

can

conciliate

the

social programs of diverse parties

would certainly result from'na-

represented in the Italian Cabinet
with the fundamental vital prin¬

tiQnaUzatidn.

i On the other handy
example of the State doing ciple of the exploitation of the
better' than the ; privately owned individual spirit of initiative?
corporation is evidenced by the
In order to be able to judge the
present condition of the Italian situation, it should be noted that
Street Railways which have re¬ the Italian Government
already
gained 60% of their prewar effi¬
controls, through the above-men¬
ciency, though-it is;is true that
tioned Instituto Ricostruzione In¬
they still
lack so much rolling
stock that their transports > are dustriale
(IRI),
the
following

Italian business organizations:

handicapped.

►

' \"'

•«
*

•

--'V

\if' V

T'''*

example,

shipping
Eighty

Banca

Commerciale Italiana—MHano—

Credito Italiancv—Genova

„

—

(000's Omitted)
M 700,000
500,000

/Banco di Roma^r-Roma^——
Banco di Santo

iie Credito

Spirito—Roma

Fondiario Sardo^-Roma/i__222-L2

;

I-

S. A. Gestioni Esattoriali—Roma

;

Societa Italiana Strade Ferrate Meridional!-—

50,000

i/.z' '£/"»

Finanziamento Titoli—Roma

S>;s, A, Gestioni Azionarie-»-Romai..«*—

Ansaldo

2213%
100%
100%

76&

Coke—Genova

;

1,500

100%

Opere Sociali Ansaldo—Genova.
>>

Officina

v,;--.

Allestimento

100%

Riparazione Navi'—.

Genova

|: '

'-2,500...

Soc.- Vendita Esercizio Motori-r-Roma

Odero—Terni—Orlando—Genova
!—...
Captieri Riuniti deH'Adriatico—Triesta—.
Naval

150,000
200,000
123,000

Meccanica—Napoli—

Engineering—
Alfa Romeo—Milano_2^

100%

100

60%
80%

,75%
100%

Arsenale
-

99%
100%

Triestino—Trieste...2..-.-100,000

San
,

240,000

,_....

Giorgio-^Genova.-^—w200,000
La Fjlotecnica Salmoiraghi-r-Milano^.-w—;
20,000

50%

——

Electric Industry—
Societa Idroelettfica PJemonte—1Torino,
Vizzola Soc. Lombardo—Milano

,98%

Idroelettrica Sarco Molveno—Milano
Societa Elettrica Trentina—Milano

/
'

...

Societa Generale Elettrica della Sicilia

Societa Elettrica Sarda—Roma
^.-22-j.
Societa Meridionale di Elettricita—Napoli-^-

for

Under

the

Unione Esercizi Elettrici—Roma...

Iron and Steel

Industry—»

2.__—
>

ILVA—Genova v.-r——-—

45%

33%
■

54%

1,000,000
500,000
'%
Mineraria Siderurgica.
2
T
25,000
/ Stabilimenti di Si
Eustacchio—Milano.^—*
8,000 '
!
Terni—Genova
1,500,000
i Dalminer—Milano
120,000
Shipping—
•
•
«,
—

Soc. Italy Acciaierie di Cornigliano2

■

.61%
100%

100%

'99%
53%

Italia^-Genova
.

Lloyd

Adriatica—Venezia
'V

...2«————

Triestino-r-Trieste.

„

w -

i—2

:«

„

Tirrenia-r;Venezia' 2 -^42-22^-^24222.^2-■_

.2 52%

and

95%

150,000

22 95%

95%
95%

;

Interregionale Piemontese
bardo—-Torino 2
221

Lom-

2.-'

Telefonica delle Venezie—Venezia^r. J.______
Telefonica Itali Medio
Soc.

Orientale—Bologna..
Elettrotelefonca Meridionale—Napoli...

330,000

96%

leave

nage?

businessmen

Further, the Italian Treasury is
interested

with

the

Pirelli

Tyres

|
,

would be sacrificed.
tries to represent economic
prob¬
under an unreal light.
-No

lems

foundation exist?

theory that the 1,850,000

of State

private enterpise. Nor

It should

standards as

guide for

States

freedom.

the parties with Eastern interests.
This appears true when one con¬
siders

that

deavor

the

with

Communists

great

we are

persistence

business relations with
the East in place of the West.
The
leftist /press
has
emphatically
criticized

tlie

idea

oil

conces¬

sions to American and British oil

Russian
in the

believe

not

American

progres¬
not interested in any

trade free

nomic
and financial reconstruc¬
tion be considered from a practical

step

towards

this

has

end

Investment

been

Swiss

capital in Italian building indus¬
try marks an opening of an epoch,
Such production and
enterprise
offers

excellent

toward

the

contribution

amelioration

unemployment

problem.

the

Foreign

loans will destroy one of the main

arguments of the supporters of the
idea of nationalization,
\
'
.

ity to

eliminate

the

owe

inio

enemy
foolish red¬

^half3^e .allows those;

their primary allegiance
foreign power to deter¬

our

Belief in

course.

and

free¬

first /article in

dom/is/the

our

shall

freedoms which

fight for all
in accord with

are

peaceful world and

fully

em¬

ployed, prosperous America.
I
still believe
in a frOe American
press, even though it lies continu¬
ally about Russia and labor—and
thus endangers both world
peace
and industrial peace.
such lies is more

education,

The

cure

for

freedom, more
knowledge, and

decent self-restraint.

We do

the

believe

in that excess of anarchic freedom

produces

tremes of

the

chaotic

ex¬

the business cycle and

recurring periods of bank¬

and unemployment.
believe that labor, business

We
and

government, c a n -act; together
through the President's Economic

takes of the '20's

and

gress

the

from

for

turning the
country over to the "laissez faire"
big business interests and their
special pleaders in the journalistic
and political world.
It does hot

repeating the planless, self-*

mistakes

over

again.

freedom

the

The

twenties

"laissez

selfish

big

all

faire"

business

inevitably leads to - depression,
higher tariffs, political confusion
in
many
nations, revolution in
some
nations, and eventually—

*17%

international

prevent this we must
certain amount of both
and

national

plan¬

ning. We must have in the United
Nations something corresponding
to

the President's

visory
States.

Council

Economic

the

Ad¬

United

Eventually the United Na¬

Russia to

looking as
September, 1945.
continually make it clear
of

We must

to the Administration that
we,

progressives,
election of

would
out

prefer.

and

out

the

reac¬

We have less

but

become

the

for

use

conser¬

cation

for

our

progressive exist¬

The ultimate justification of

ence.

the progressive
of

program

positive
peace, world

cause

world

prosperity and world freedom.
We
progressive,
independent
citizens believing in political ac¬
tion, are not defeatists. Roosevelt
spirit

are

the true Roosevelt

looking ahead to

organized

progressive

movement. We believe that three-

fourths

the

will believe in

American
our

our
objective is to
Democratic Party out
and out progressive,. If the new
Independent Citizens for Political

people

message

Action

the

issues.

once

also

are
the majority of the ar¬
tists, scientists, and professional
people. They all believe in the

Americanism

our

approach/ The American doctrine
as

revolutionary approach. It is
revolutionary as the Declara¬

tion of Independence

tysburg

Address.

equality of

the Get¬

affirms

the

the freedom of
man and the pursuit of happiness
as the goal of man.
The farmers
and

Small

man,

businessmen

always

be with
the wheel

when

will

not

at first, but
of the business

cycle turns, both farmers and busi¬
nessmen

stand

will reach out to under¬

our

progressive program.

and

the

true

road

the

peace,

prosperity and freedom. Your job
as
a
progressive organization is
to reach that majority of the pop¬
ulation which is potentially pro¬
gressive but which, due-to lack of
information, is in the hands of the

uphold the good
progressives who
Congress, as well as those

countless

others

ful public

who

faith¬

were

useful

years.
They
writing articles,
making speeches, and taking part

should

busy

in your councils.
We shall
them in Congress again.
As

work

must

ing

among ourselves.
be against

never

fight¬

shall

anything simply

because Russia
shall

see

fight off
try; to

the jenemy, as his stooges
stir up jealousies and
get us

we ever

is for it.

be for

Neither

anything sim¬

ply because Russia is for it. We
shall hold firmly to the
American
theme pf peace,'
prosperity and

freedom,

and shall repel all
attacks of, the plutocrats and

nopolists who

the
mo¬

will

try to brand
us as Reds.
If it is traitorous to
believe in peace—we are traitors.
If it is communistic to
believe in
prosperity for all—we are com¬
munists, y If it is
red-baiting to
fight for, free speech and real
freedom of the press—we are red

baiters. .If

it is un-American t#
believe in freedom from
monopo¬
listic dictation, we are un-Ameri¬

I say that we are more Amer¬
than the neo-fascists who

attack

The

us.

tacked the
succeed,

likely

provided

at¬

are

ready
willing to counter-attack. On
with the fight!
and

Truman Xmas Message
For Wounded Vets
President
Omar

Truman, joining Gen.
Bradley, Veterans Ad¬

ministration

chief, in Christmas
greetings to veterans who had
been wounded in the
war, on Dec.
19, according to United Press ad¬
vices from Washington, assured
the

112,000

men

artd

women

veteran

hospitals and homes
throughout the country that al¬
though the United States had "not
yet

achieved

peace for which you

secured

the

fought," there

is greater hope for its achievement
in the future with "men and wom¬
en

everywhere, working together
unity, seeking to establish mu¬
understanding and justice in

tual
this

world."

General

Bradley's message de¬

clared, said the

same advices, that
everywhere were de*L<
termined to give wounded men
and
women
opportunities
for

Americans

Postwar II will be different from

"health"

that of Postwar I.

world."

In your hands

servants can be

during the next two

conservatives at the present time.
If
you
succeed, the pattern of

part of such

precinct

every

will

arms of all

World Fed¬

members

Koppleman.
Hook,
MacMurray,
Outland, Mrs. < Woodhouse, and

will question a program
imperialism and heavy arma¬
as

effective

who were defeated last
November,

■

American

people
ment

its

The appeal must be to all
citizensincluding housewives. There must
be neighborhood
meetings
in

ican

understand

country to educate the people and
control the political
machinery.

can,

they

is
into

move

pro¬

independent, is with

the

organization

we go all out to get it over
to them. American labor, whether
AFL, tlO,' Railway Brotherhood,

vide*}

moment

make

cannot .expect

tions must become

eration,

big

down the high road of boom, bust,
war is the immediate
justifi¬

stand

faire"

leading

and

1925

mean

it deals with

"laissez

businessmen

fundamental

to 1933.

To do the

tariff, taxation, and fiscal policies.
To prevent the Republican Con¬

Advisory Council to prevent the
business cycle from going to suqh
dangerous extremes as it did from
Belief in freedom does not

leadership in Coqgress is in seriods 'danger of repeating its mis*-

better */

cycle

peace

in the future,
The Republican

past.

is gone, but in

live

must

nopoly, whether of the press or of
cartels, to interfere with the free,
private initiative of small business
neither

business

danger

not believe in the freedom of mo¬

But

the postwar business cycle. 7-2/'I-;
We progressives believe that the
United States can eliminate the

ish

forward

message

We must also

excesses

in the

his

right

Federation until
the ' United
States has demonstrated her abil¬

January

not

that

everything

every locality to study the prin¬
ciples of I.C.P.A.

10)

page

job

to stampede

men.

to work, you should do

you can to make President Tru¬
man's message to Congress this

vative,
high tariff
Democratic
Party than we have for a reac¬
tionary, high tariff Republican
the development of individualism
Party, If need be we shall first
in trade and industry.
A great fight one and then the other. At

the essential freedoms.

alloAy the attacks of the

should

you

to be a genuine
two-party coun¬
try, and not a country operated
by a fake one-party system under
the guise of a bi-partisan bloc.

and

gineered by the enemy. We shall

credo

Continually

on the Italian markets.
It is of highest importance that
the problem of the Italian eco¬

oil

not

some

tionary like Taft in 1948 to a
luke-warm liberal/ We want this

the

excesses

mine

They dislike leaving
petroleum products

companies.

without

engineering industry, 25%

en¬

develop

that much of such fighting is en¬

who

cause.

not

■

responsibility for leader¬

ship. You should pass up no out
portunity to advance the progres¬
sive

are

peace. Those who hold up

United

rests the

forgotten that work with the President's Eco¬
much propaganda finds its origin nomic
Advisory Council. If you
in the ideology connecting some of have
any channels through which

(Continued from

govern-

Unity lor Progress

have

ment investments it

of the

unem¬

the fulfillment of either the theory

war.

;

support the

ployed in Italy would find jobs in

100%

some

importance.

100%

appears, how-r
synthetic rubber fac¬ ! ever, that the Italian State
already
tories/in some tourists' concerns controls the, majority of the
pri¬
nnd in some road building and vate banks, at least 70% of
the
railway companies of secondary Italian shipbuilding
industry, 40%
Co. in

Communist Agitation:

reached.

Unhappily, political propaganda

100,000
102,000

From the above list of

settle

replacing lost ton¬
the taxpayer

Othewise,

2 78,000

♦The remainder is in the hands of the
Ericsson group.

in¬

...

point of view; that is, from the
turning business to necessity of granting the most sup¬
ownership and initiative port to all those who insist upon
by

private

mean

500,000
300,000
150,000

TelephonesTelefonica

circum¬

ruptcy

2246%
:

these

the

Government to settle the

problem

leads to

12 79%
-

rebuilding

stances, would it not be simpler

50%
52%

the funds from

secure

taxpayers for

51%

■

longer
tonnage.

any

by the State has been
badly damaged during the
Consequently, the Treasury

which

996,000
10,000
100,000
168,000
300,000
150,000
1,125,000
269,000

the

cent of the four lines

per

will have to

Ansalodd—Cornigliano Ligure 2-2-

war.

10%

/Shipbuilding Yards—
■

■

500,000

Italiana di Assicurazioni Credito—Roma
Societa

80%

715,000
5,000
1,020
1,000
1,000

-U-

State.

the

baiting. Nor

4'^ "29,000
-J

Milano

95%

f96%
2; 99%

300,000

the

either party promise
in employment.

can

crease

fight between the Russian haters
and the Russophiles. We believe

In Lire.

Banking and Finance—»

Italian

controlled

lost

sives

Capital—
/

the

capital
industry is no

■

shoulders

guaranteed

real

danger

But1 the

question" is

often

nationalization

the question of

himself whether there is any

industry,

industries, for the present invest¬
ments represent a heavy burden

vessels.

Instituto

place
to

the

Industriale

electric

Under such circumstances what
be the use of developing

the

loans.

Italian

would

ests are now under the control of

favoring na¬
industry

of" offers

In addition,

ture,

of / Italian

their

withdrawal

appreciate

corporation which is to
handle coal purchases in the fu¬

possibility of nationalization.
Several leading politicians have

delivered

the

tionalization

Cabinet

importance of securing co¬
operation of individual coal im¬
porters who have been given 50%

account of

the

and shipping
enterprises.
Unfor¬
tunately, these negotiations have

completed

Stoppage of aid from the UNRRA

wegian investors considered ven¬
turing funds in, Italian telephone

not been

Government

it has become necessary to con-r
sider organization of coal imports.

ings in several cities, most impor¬
of

Italian

be¬

of the above condition since

aware

chased sites for residential build¬
tant

the

one

the

70% of the Italian iron and steel
industry, 90% of the regular Ital¬
ian steamship services to overseas
and the majority of the Italian
telephone system.
Y
:

(Continued from page 5)

Swedish and Swiss financiers have

31
V*.

and
•"

"place

this

THE COMMERCIAL & FINANCIAL CHRONICLE

put

Backed

latter pool their eco¬
nomic resources with those of the

eniitled

line

Major

ted

aspects of our
icy in order to

occupation pol¬
substitute pro-

„

•German Reconstruction
'

Emphasized

coun¬

specific

production.

time
again to threaten
the peace of the world."
Ger¬
many's economic rebirth must be
stimulated
by " this
nation
to
lighten the huge relief load on
American taxpayers—estimated as
likely to reach $200,000,000 a year

agencies including books,
magazines, papers and moves as
well as our reporters can be

taining without at the same

facilitated.

specific study of safeguard¬
ing the trade recommendations

bers either of the

both

'1X

(Continued from

tained levels of production are
$ie key i to
the wage-price
X;profit; factors which make up

2, A

evaltiatioh: df

realistic

; material

supply

compared

that

levels

; production

and Fund,
the liberated countries must turn
to
other sources than
German

quiries

and

must hold dwellings;
days for sale to veterans;

4. Builders
for 60

accompanied the
its trip to Europe.

and 30 days for rent

to veter¬

Rent, for dwellings to be rented,;?:
not be more than an aver- X

may

$80 per month per unit,
but charges for services up to*

age of

mistake

be charged

must be stated im

the application for the permit anc£
after
approval
by the Federal:
Housing Agency may be increased
only if the builder is able to show

increases in construction

American

labor

intellectual i capacity

believe that

tragic

better

ating

Journal"

"Mr.

"Wall

The

costs.

oper¬

Street:

advices also said:

X X*

added that per¬
mits must be obtained for any al¬
Creedon

terations

repairs to

the cost exceeds $400.

homes

Additional.^

rooms

to be added to house veter- '

ans or

members of the applicant's:;

family: may not cost more thaj>
$1,500 per person to be housed.

The way out is

through hysterical

not

editorials

and headlines, the use of labor in¬

the

junctions,

scarce

of labor

public castigation
repressive labor legis¬

these

can

solve

the

strike problem

as long as the basic
which compel free men
to strike, remain unsolved.
The
answer lies in positive construc¬

reasons,

tive action which gets at the root
causes

of strikes and which solves

The

new

honest and fair basis.
year

one

full

challenge and promise to both
American;labor
and
American

•

;

;?cMApplications for permits may
be .made by either a veteran or*
non-veteran who wishes to build
for his own occupancy or a

...

None

them

ways and means to
the vicious wage-price

lation.

4. Practical
break

be disas¬

may

out of our present difficulties
is to look for a national scapegoat.

materials.

the conditions of the

way

available substitutes for

;X- -X;.
said that the rent,

Hitler tried that.

tion of f new facilities, either
privately or publicly financed,

that

be added to this;

Mr. Creedon

Certainly it would be

through

the

a room may

ceiling." *

cycle that has kept our economy
agreement and equal trading
management.. Our tasks are dif¬
on a merry-go-round at an inoperations for the United States
reparations" for financial aid and X; have been secured. yl-HyXXXVXX vH'. creasingly j accelerated pace ficult, but they are not impossible
if all parties approach them with
in any event "should pay for their
since V-J Day, and at the same
8. A study of the nature of the
a resolution to work for the best
taking of German coal in order to
time projection of a long-range
; employment of gold reserves by
interests of the whole community
afford some exchange for neces¬
economic policy that will get
; / countries which are not memand the whole,nation.,
sary imports."; ;
wages, prices and profits into
;;
bers of the International Bank
In 1947,: with hard work, good¬
the proper relationship so that
Unless this principle is insisted
i? and Fund which may prejudice
will and intelligence we can win
V we can achieve and maintain a
upon by the United States, once ^itthe operation of gold as a me¬
the peace we have come so close
7 balance between mass produc¬
more we shall pay a major part
dium of international exchange
"
tive power and mass purchas- to losing.
of German reparations, this time
for multilateral trading.
not by private loans but by occu¬
ing power.
pation costs and relief for western
5. Exploration of means of estab¬
Additional Suggested Policies
U. S. China Air Pact
Germany," the report continued.
lishing,..a guaranteed annual
Nanking Associated 'Press ad¬
In the following fields the com¬
XX wage inv American industry, vices under date of Dec. 20 stated:
"Watchful Waiting" Indicated
mittee also recommended that:
T
u

nor-:

Only the number of fixtures;V
normally used to equip onebathroom may be used.
X

Company, and

to
solve the problems I have listed.

planning to increase pro¬
of
basic -materials
maximum utilization
of existing facilities, public and
private; where existing facili¬
ties are, inadequate, construcduction

(Export-Im-

believe

and

not mem¬

to the fulfillment of
lend-lease

most

under the limitation.

come

and management have the energy

the
X initiations of coordinated action

of further set¬
tlements of lend-lease until in¬

should be available through

with

For Strikes

X ; our needs at projected higher

7. The holding up

the International Bank

include

would

mally built two and three bed-room
houses.
For instance, a.
one-story house could have an
overall size 35 feet by 40 feetand a two-story house could be?
built 20 feet by 35 feet and

Would Remove Basic Reasons

Our

and increase in credits

This

area may

basements, attics, open
terraces and garages-

porches,

page

the loans

include

whom

occupancy.

not exceed!
1,500 square feet. This does not

Marion B. Folsom

the atomic age
trous.
'

the economic equation,

that "with

year-round
2. Total floor

j.meant: economic dislocation. In

must be undertaken without
pointed out that potential German
of the export of American tech¬
war-making industries can be con¬
delay.
nical know-how and of finished
trolled by a system of direct in¬
products which could be useful 3. A voluntary system of allocaspection as well as through im¬
in the development of atomic•X tion of scarce materials on the
port controls, which would pre¬
basis of essentiality to elimi¬
weapons
.
Security considevent stockpiling of strategic ma¬ 1- rations
nate hoarding and stockpiling;
may call for broadening
terials.
These steps, the report
such controls over exports to
joint research studies by pri¬
said, can prevent the German war
vate and Government techni¬
prevent building of other arma¬
machine from rising again.
,7; i
cians to find, develop and make
ments.
The committee noted

arer

Dwellings must be intended for

Labor-Management

effectiveness of the elimination

the "Wall Street Journal"

Conference Needed

of the desirability and

6. A study

director,

committee

A National

plus V port) Bank, the (International
comparable figure now being
Bank and) Fund, or of the Inloaned to support relief in the C ternational Trade Organization.
committee

regulations, made ef¬
fective the following day, accord¬
ing to advices from Washington

in the U. S. zone in Germany

At the same time the

houses and apart-

new

The

ments.

ans.

British and French zones.

prepared

of Eastman Kodak

tions."

conditions under which per¬
will be issued for the con¬

struction of

the group's consultant Dr. William
Y. Elliott of Harvard University,

practices, particu¬
larly by the state monopolies
are

mits

the committee's

and technical skill to
countries operating through "mo¬
nopolistic state trading organiza¬

state trading

who

The report was
staff

products

% with 7 respect to the abuse of
nations

Coo¬

the assistance of

5. A

besides

Jere

are

the State Department to re*
quire registration of all contracts
for the sale of American finished

tion

•

now

power

(■: dom

fact, ( the committee said,
objective : in, administering
the economic affairs of Germany
is to make that country self-sus¬

commodities

and

being purchased on a "preemptive
scale" by Britain; Congress em¬

inquiry into the remaning it restrictions
on
the
movement of business men;?and
into the methods by which freeof V access
into:: foreign
countries of American informa-

J %

giving us access to several raw

4. A further

"our

permitting

the

new

(D-Tenn.), Francis E. Walter
(D-Pa.), Orville Zimmerman (DMo.),
Jerry
Voorhis
(D-Cal.),
John R. Murdock (D-Ariz.), Wal¬
ter A. Lunch (D-N. Y.), Thomas J.
O'Brien (D-Ill.), John E. Fogarty
(D-R. I.), Eugene Worley
(DTex.), Charles
L.X Gifford
(RMass.), Richard J. Welch (R-Cal.),
Charles A. Wolverton (R-N. J.),
Clifford R. Hope (R-Kan.), Jesse
P. Wolcott (R-Mich.), Jay LeFevre
(RtN. Y.), and Sid. Simpson (R-

raw ma¬

similarly

Greece

materials

Import Bank to start the flow
raw materials necessary for

our
occupation authrough the Export-

industrial

'■

terials;

members

decontrolled!

the

recently
an¬
nounced
by President Truman,
Housing Expediter Frank R. Creedon, on Dec. 23, made public the

Colmer

with

program

per

much direct relief from

in the matter of loans for

of
■

thorities

without

ain

3. Loans

and Austria oc¬

Chairman

line

housing

Committee

Relief, Food, Clothing—Greater
be given Germany in
improving her export position and
thus allowing for greater imports

Foreign Trade—Action be taken
to enforce agreements with Brit¬

and the substitution of

•

;

responsibility of Britain. vt

ex-enemy

France.;

Europe, in¬

ment be

tively.,

and self-supporting

2. An end to American contribu-A tions
through UNRRA relief

forts.

cations generally.

Loans Period Extended

of the Office of

and to communi¬

present method of
them with Amer7 ican money while they, in turn,
X are being drained by Russia and

position of "crucial im¬
portance"
in
the recovery of
Western Europe and that because
of this
the United States must
lead the way in reconstruction ef¬
cupy

ment of persons

mili¬

that policies
Military Govern¬
imposed more authorita¬

tary commanders

break down barriers to the move¬

tries for the

;

ened with relations to local

travel of stateless
effort be made to

every

the U. S.; Italy be regarded as a

•

if assistance to the western , oc¬
cluding
Russia, late last year.
cupied zones of Germany and
Drawing on these first-hand ob¬
Austria.
servations, the committee pointed
out that Germany

persons;

supporting

1944, examined economic and po¬
litical conditions during a tour of
the Middle East and

the

for

ports

economies

com¬

Communications, Travel Move¬
support be given for

the creation of Hansen-type pass¬

ductive

pursuing, with the support of both
political parties, but on the con¬
trary to point to avenues of fur¬
ther
improvement
and
still
stronger bargaining;> •'

by the
slow processes of court trials; the
position of the U. S. Civil Affairs
Division of the Army be strength¬

financial primary responsibility of the U. S.

the

review

1. A

broad over-all policies
which the Department has been

mittee, which was established

Congressional inquiries to im¬
,

the

assistance

these ma¬

plement all of them:

the

Recommendations

jor recommendations and sugges¬

in many areas."

and

The committee listed

Therefore, the committee con¬
tinued, their recommendations are
"not meant to condemn in any

members

zones

ment—Full

economic
a political frontier
frpm 'Stettin to
run

Europe

cleared of "denunciations"

Trieste'."

the State
Department has given in carrying
out the
protection of American

Several

well

across

vigorous leadership that

way

threatened

Europe," seemed "critical
in detail," the committee wholelieartedly backed "the strong and

interests

of all eastern Europe

covery

tion

political and economic policies
Russia "have retarded the re¬

Building Permit Rules:

itary government regulations
which prohibit all work to many
Germans
until they have been

British and U. S. zones.

the

—

to Russia and France

unless

(Continued from page 7)

noting that the repoft,
"Economic
Reconstruc¬

Reconstruction

complete revision be made of mil¬

British

Sell-Sustaining Germany
While

German

reparation

shipments be made from U. S. or

Colmei Committee Recommends

State Department Leadership

Germany;

Thursday, January 2, 1947

build¬

who will give veterans prefer¬
ence in selling or renting.
er

"All

priorities

previously

issued, Mr. Creedon said, will re¬
main

valid, but

will

no new

issued.

priorities;

ratings

are

priorities granted for materials for*
permanent construction.
cated
the

part of

He indi¬

the liberalizing of

non-housing limitation order*

might take the form of allowing:

foundations

building

tural ; steel
not affect

and

struc¬

which

frames

would?

housing. He also stated!

that allocation of five

raw

materi¬

through, .collective

Transportation — No surplus
weeks merchant vessels be sold to Russia
of a change in the Russian atti¬ until ;
her
wartime 1 lend-lease
tude," the committee said that this agreements have been kept; strong
measures be taken to force the re¬
apparently has resulted from a
"stiffening resistance" to previous turn of coal cars from the French,
Russian policies.
' •
X. X,:
Polish, and Russiah zones to sup¬
port additional coil production in
v "This may," the report went on,
"offer some hope of permitting an the Ruhr; more attention be given
getting freer navigation of
ultimate integration of Germany to
waterways; restraints
along economic lines. It should be European
emphasized, however, that these on German maritime shipping be
moves
as well as
others in the realized to improve her foreign
area
of
disarmament proposals exchange position.

Recognizing that "hopeful signs

■

Fuel and Raw Materials—Top
could, in the light of previous ex¬
perience, be merely tactical with¬ priority be given to coal produc¬
drawals in the face of increasing tion in Germany to help her whole
insistence and not alterations of industrial economy; export of coal
basic strategic objectives. A policy to the liberated countries be kept
of watchful waiting is indicated." at a maximum ceiling * with in¬

Up
ever,

to the present time, how¬
the committee maintained;

creases

production going to
industrial out¬

raise the level: of

terials 1 probably

of building

would

ma¬

continue-

through the first quarter of 1947-

•

jhave appeared in the past

als to producers

bargaining.

"The

tive

ilar

bargaining or through a
legislative ' program
jointly
sponsored by labor and man;

rights at Honolulu, San Fran
It conforms

cisco and New York.
with the

1944 Chicago civil avia
tion code.":" X:XX: y;:jQ''

7. Development

of a
joint tax
proposal to Congress that will
strengthen our efforts to keep

functioning

Gonzalo'Restrepo Jaramillo has

production, full employ,;Xment and full consumption baS1S'

to the

been
new.,

announced

Colombia's

Ambassador; to< the

United

State^,; according to a dispatch on

-:Xf' -.Cv

monthly rent and. !

inspection: ^requirements;!;^
were
were

in force- when the priorities

issued."';'X :XiX;

X: At the
the

made of

the lengthening

amortization period for FHA

loans financing

projects.
the

'XXX-vrf' X X:'X-^yX

same time announcement

multiple housing

In future, according to

announcement,

the

average-

loan will mature in 32 years and

Pec. -18 frpih Bogota to the New 7 months instead of 27
a joint con*
years and
explore" means of ?• ork "Times", which added that
7 months, as at present; whicfr
translating technical,, progress former Ambassador Sanz de San
into social progress. In, the pastX tamaria has returned to be Min- will tend to reduce monthly car¬
the lag between these two has ister, of; War. ^ X •; y i r X m
£j r •
rying charges.
r
*
mittee

to:

$10,000 sale ceiling and the

8. Establishment-of

;

i f

$80 maximum

was

Colombian Envoy to U. S.

full

■; :

priority aid will still be subject

States

today

economy

lumber.

"Houses built after Dec. 24 withi

provide ade¬
hospitalization, medical
care
and Old age retirement
programs fco workers and their
families either through collec¬
quate

our

steel, pig iron, phenolic-

signed a commercial air
transport agreement giving the
United
States
pickup and dis¬
charge rights at Shanghai, Tien
tsin and Canton and China sim¬

6. Practical steps to

agement.

are

resins, paper liner, and shop grade

China

United

and

These

...

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4556

Volume 165"

Laidlawfr Co. Admits

Observations
7;/. :w

»:r

Four to

(Continued from page 5)

from' his vetoing activities,

stention

nouncement of

Mr.

was the recent appeasing pro¬
deputy, Mr. Andrei Vishinsky, to the

Molotov's

Four

Council of American-Soviet
the

Friendship, citing Mr. Stalin's 1927 words
that socialist and capitalist systems can exist side by

effect

side to

their mutual

benefit.

And

mid-October. Mr.

The International Fund and

Partnership

mitted into

the

for the

peaceful philosophy by reporting his realization
that capitalist England and the U. S. do not want to. encircle^the
Soviet Union, and that capitalism and communism can co-exist,

1. When the

war

>;:• overcome

same Mr. Vishinsky accused the United States of having
profits through Russian blood. And there has been no def¬

diatribes emanating from "Pravda,"
Tzvestia," "The New Times" and other Moscow press organs, accusing
the Anglo-Saxon "reactionaries" of planning a war, both atomic-ally

When,

deeds

back

pels

William E. Dugan

general

come

McSweeney, a special
partner, succeeding the late Henry
McSweeney,: who had J>eeh a spe¬
cial partner in the firm since 1.925,
Laidlaw & Co., founded in 1842,
members

the

American

Investment Bankers

Bank of New

Questions Still Open

:<3ofriinatioh of the Danube, the Adriatic* the Black: and Aegean Seas,
i and the Mediterranean, have prompted all the controversy centered
latter

Trieste, Greece and the Darr

will be

crucially determined by the
Convention, which will be staged in
the new year. This will cause a lineup of the U, S. and Britain back¬
ing up Turkish resistance to drastic territorial revision as demanded
toy Russia. Then there are the other "hot spots" consisting of Carin■thia-ahd-Titp; Macedonia, Palestine:.and temporarily-quiescent Iran.
!»
Spain is another area which harbors permanent trouble insti¬
gated by the Soviet through the right—derived from a' last-minute
<5eneral Assembly resolution-^-given the Security Council to take
"adequate measures" if Spain does not establish a government which
"derives its authority from the consent of the governed." Adlai Stev¬
enson, the U. S. representative;finally voted therefor "in the interests
of harmony," but with strong misgivings.
,v;
Each of these areas presents ah issue on which the Uriited States
is not and cannot be neutral, but must display appeasement—the
limits of which must be clearly defined and firmly held. There*'and
in Germany, such functioning by Mr. Byrnes in 1947 will determine
question

reconsideration of the Montreux

America's and the world's peace.

Three orchestras played during
on

half of trading

the New York Stock Exchange
Year's Eve,, the principal

New

:group,! that Of Maurice Wolfsie
and his 50-piece orchestra, in the
;gallery overlooking the main trad¬
ing room, and two five-piece or¬

chestras,

under

the

direction

Edward E. Leoni, in the 11

Street

annex

and

bond

The gong signalizing
1946 trading was
rung

Wall

x|>om.

•

tfye= end of

by John A.

Coleman, Chairman of the Board,
who

was

escorted

to the

rostrum

by Emil Schram, President, who

joined the Chairman

extending

New Year greetings to the

bership.

mem¬

asso¬

early part of this year. His father,
Gilbert U. Burdett, is also a gen¬
era 1 partner in the firm/ Mr. Laid¬

law,

of Elliot C. R; Laidlaw,
joined the staff in 1937; and after
son

two years of war service, rejoined
Laidlaw & Co. in 1945 as a se¬

curity analyst.
Partnership changes were pre¬
viously reported in the "Financial
:

Chronicle" of Dec. 19.

Stewart

Succeed

Litfle Rock Branch; will retire
April 30, 1947, in accordance with
Reserve

the Fed¬

plan of

Banks.

Mr.

Bailey

opened, on Jan. <5, 1919, serving as
Cashier
during
the., iirst few
months
and
as
Manager since
then;

formerly

was

mercial banker and

a, com-,

State Bank

Examiner in Arkansas.

CHICAGO, ILL.—Fred W. FairClarence M. Stewart, Vice-Presi¬
& Co., 208 South La Salle
dent and Secretary of the parent
Street, members of the Chicago
bank, has been chosen to succeed
Stock Exchange, announce the in¬
Mr. Bailey. After seven years with
stallation of a direct private wire
a St. Louis commercial
bank, Mr.
to Ward & Co.; 120
Broadway, Stewart entered the employ of the
New York City.
,
,*>/H Federal Reserve Bank
during its
organization, and has served; as
man

N. Y. Curb Issues Booklet1
A

bopk^tj' entitled

new

New' York

Curb

International
has

been

"The

Exchange—An

Securities

published

Market"

the

Curb

Exchange for distribution to visi¬
tors to
use

its

public gallery and for

filling requests from edu¬

the

such

member:

These provisions are couched in
clauses which I do not

Vice-Presi¬

dent, Cashier, and Vice-President.

;

juncture is to recall, in
general terms, the field of activ¬

T he

Fund

graduate of

the

Benton

College of Law, St. Louis, and
former

lecturer

Institute
YMCA

garding the exchange.v /'

Branch.

agers'

the

of
.

the

Banking

School.
of

American
*

and

At present

the
he is

the^ Board of Man-'

YMC A
■

say

during
the least,

has been filled with uncertainties

from A political, econbmjc and so¬

...

tablishes
:

the Fund

now,

contact

that

members;

;

:V^Vv'

cerned.
That, as of

Monetary

into existence

not

conditions of the countries con.-

International

came

period which, to

today.

correspond

bring
the bearing of the decisions
*

that

value which would exactly
to
the
economic?

par

ities of the Fund in order to

which the Fund has taken

feels

Fund

in a position to recommend to-¬
day th£ selection of any new

aim at this

liaison

es¬

all

with

it»

intends;

with

in
to

them,

■/£ make

a thorough study of their
situation and to submit to them

cial standpoint, These uncertainany recommendations which it
tie^ hiaye direct repercussions in 1.; deems necessary; and that these
the1 monetary field.
;;; recommendations
will
covear
•

;

both the

On the other hand the, devasta¬

tion

caused

brought

and

by the

with

the; privations
war

ated

an; accumulation
ments which resulted

have
in

cases,
ment which in other

"sell¬

made

which must

nection

is impossible to make any ac¬
curate .forecast
in
this respect.
But the fact that it is in existence

measures

•

cases

must

the

policy
be adopted in con¬
as

the

...v.,"

■

it is, primarily^

case,

every

well

therewith.

•

be taken

view to

avoiding mone¬
adjustments in
specifieand the monetary adjust¬

tary

cre¬

of require¬

er's market," that today is still in
existence. How long will it last?

country concerned

makes;it

take

gain

Fund steps

even more difficult to
clear picture of the present

monetary
er's

This

situation.

"sell¬

the

If any

their exports

pecessary steps.
The
in as a helper and as?
"
" • • 'V

adviser.

ymarket^

competition from taking its course.
The majority of countries have

of the members

were

to act in accordance with the
ommendations made

not

rec*-

by the FundF^
time have-

the

latter

the

right to restrict, and if nec-?
even completely to sus^
access by such members to

limited not by their
price levels but by actual produc¬
tion and transport possibilities. In

will

essary,

certain

pend

countries,

devaluation

which, at other times, might ap¬
pear as an easy solution of the
monetary problem, would today
have

effect other than to step

its

resources.

any

This

statement

is intendedl

to; f

enlighten the public and to meet,
among other opinions, two argi*-*

■.

ments which

support all par values at present
in force and that it undertakes to y
maintain them. < Others
say,
Ti¬

number of countries find
therpselves facedjiby a quite ab¬

b^qugbi.about by

Dowritown

the

Fund

enemy

the
does

occupation op j war opera¬
They havq^taken steps in
the monetary an<Jtqcqnomic fields
to revert to normalcy, .but such a
policy implies a gradpal, evolution,
which is now taking place and
which it would be unfair to crystalize at the present stage

ing

by fix¬

par value based upon'eco¬
nomic elements which are still
a

undergoing rapid changes.
Would it have been better,

con¬

sidering this state of uncertainty,
to postpone the initiation of trans¬
actions

the

such time

either

Fund

until

the world might have

become

politically or economically
more stable, or until such time as
the "seller's market" might give
way

"buyer's market"?

That

would have been equivalent to an

indefinite

The

postponement.

initiation of its ^trans¬
contribute to a certain

towards

turn of

stability.

the

gradual
'

•

re¬

Fund

gives

does

have heard

its

not

authority

re- >

think that

persons

this, what

it do?".

The

to be

given to the
people advancing the former ar¬
gument is that in order to make
a
par value final,
it would be
necessary to impart the same fi¬
nal
stability to the underlyingpolitical, economic and social or¬
ganization, and this is unquestion-r
ably beyond the reach of the
answer

Fund.

there is

the

financial ;

second

easy

argument,
too: the

answer

intervention

of
the
Fund, the cooperation with and by

it, ,!the

;■

consultation j of
monetary ad¬
justment (a consultation which isr
designed to make such adjustment
the

required

Fund

for

any

an "orderly" one and to avoid any
purely competitive depreciation h
apyd the sanctions which the Fund

rrtay
a"

take

given

new

are by themselves, to
extent, a guarantee for

order and

One of the
the

cently.! Certain

tions.

extent

the

My only

as ; the very
actions may

technical

out

.quality

Essentially it means two things
•
• ;
V
v■"
!
That under present conditions*.
regardless of its opinion con¬
cerning the strength or the vuY—
nerability of any one currency^

; to the latter in specific cases.

intend to mention here.

same

Certainly not.

namely:

refuse to lend its support

may

having the

of stability?

Secretary,

Assistant

lished

member its views

the economic and monetary

situation of

Fund did not consider it advisable

Chairman

; v

Assistant Federal Reserve Agent,

cational institutions and the
gen¬
eral public for information
re¬
,

normal situation

dent of the Federal Reserve Bank
of St. Louis and Manager of its

retirement

Insofar

concerned, the latter
its own accord com¬

values

par

that ,.a

Bailey

At F. R. Bank of St. Louis

eral

the

agreementand

internal inflation without in¬
creasing exports.,..
; To this should
be added the fact

liArthur^lV^M

the

the Fund.

•

has been with the branch since it

MY Stock Exchange
Private Wire Between
Welcomes New |Yearc F. W. Fairman A; Ward
the last hour and

York, became

ciated with Laidlaw &»Co. in the

In any event, it certainly cannot be doubted that Russia's basic
bairns have not vanished into thin air, nor has the desired extension
«of her spheres of influence been abandoned. Hehce; her plans for

The

considers all the par values pub¬

Associa¬

«danelles.

have, therefore, been accepted.
Does this mean that the Fund,

municate to

nical position of each member, the
Fund has not expressed any dis^

may

partners,'and Mrs.

Theresa N.

artillery becomes trained. If her point cannot be readily won by a
/first approach, others are tried and hammered at again and again, tion, the New York Stock and
other leading Exchanges.
•with abandonment of the objective only coming when a real showMr.
Kouwenhoven
*down makes it absolutely clear that the opposition positively will not
has ,,been
.-yield further. Thus in making concessions at the closing Foreign wi^;LMdla\y,;& Cbcaince^l^ll iexMinisters' meetmgs, Mr, Molotov gave the impression that he had cept for 22 montlis in the- Uli ,s;
"been keeping them up his sleeve all during the previous months for Navy during ^pr^
^^a^^ .and
ha s been, executive
tuse in utimately closing the best deal possible.
assis^ntjto the
A particularly aggravating SoViet technique is its habit of hnpartners. Toy the past' f!iye years.:
Mr. Dugan started his business
concernedly reopening a situation to whose settlement 'it previ¬
ously had fully agreed—such action usually being' carried on by two career with the company in 1929
or more of their representatiyes."SrhaU wonder that the Russians are
after graduating from the Whar¬
regarded as using the UN merely as a platform for publicizing their ton School of Finance & Com¬
propaganda.;:"
\
:-y:
merce, University of Pennsylvania
We see the Soviet, alone of the Big Five* quite blandly re¬ and has been head
qf the firm's
maining aloof from, and refusing to join, important direct and^nffili¬ Investment Research? Department
ated bodies of the organization. Among these are the International for the past five years,
•
Monetary Fund and World Bank, the World Trade Organization, the
Mr. Burdett, who
started his
Trusteeship Council and the International Refugee Organization.
banking career in 1937 with the

aiot'only on the Danube itself,-but

proceeding with such

Fund

banking firm of Laidlaw &
Co'.,; 26 Broadway, New York City,
on
Jan.. 2, 1947,. it is announced.
William, W, Kouwenhoven, Wil¬
liam E. Dugan, Paul E,. Burdett
and '"Henry, BLaidlaw will !be-

are

with

W. W. Kouwenhoven

:s:^r-:•'•;ivv'.X-j.-..fr-^'**2.

vate

ligations to which she agreed during the war—as at Yalta. Then we.
and
New*•; York State
Jhave noted her altogether unique and disconcerting methods of ne¬ Bankers
Bankers Associations, as well as
gotiation for her evidently firm objectives, on which all her forensic

■

make

convinced him that the alternative meant

com¬

adjustment.■
V"5 C
Close contact may at
any; time
be
established
by a member

disequilibrium
to

Fund, provided that the latter did
not, in the meantime, expresa dis¬
agreement with
respect to the,,
proposed figure.
After having studied the tech¬

■,

agreeable nature—including her.
as unfathomable. Did Mr. Molo-

only because Mr. Byrnes v adamantly
a real permanent rupture
Big Four relations, whereby Russia would be faced by a world¬
wide anti-Soviet bloc? Or—cynically viewed—was Moscow's change
of disposition due to a cause as realistic as worsening of Russia's in¬
ternal economy and her prospective need for cold,; hard American
cash? Or possibly.is Moscow slyly trying to lay a foundation of com¬
placency for the new American Congress,- to stimulate it toward arm¬
ament reduction; 'and toward general isolation from
interference with
Soviet expansion/aims?
•*'
•.',
It is probably more effective to: appraise the real position by ac¬
cepting actions; rather than by scrutinizing either them or words.
"We must remember, as good lawyers quickly learn, that it is the law
in action rather than in books, that counts. Here we see in the first
place that Moscow has deliberately refused to honor important ob¬

hand,

basis for the transactions of the

other

country

prior

in New York

down

it.
the

adjustment,
that
country must consult the Fund

complete turnabout in Iran—are just
tov

monetary

ir.Jsb-.-i,-•>../.••

recent

they considered
their cur¬

Pursuant to the by-laws>

rencies.

coun¬

what

to be the par values of

the balance of payments

Recent Puzzling Moves

Moscow's

currency

permanent

initive cessation of journalistic

and via encirclement.

;

try is treatened by a* temporary the parities so communicated were
1 crisis, the Fund may financially automatically
to
become today.
assist that country in order to the "initial par values" serving as-

v'Yet only last-February Mr, Stalin broadcast to the world that
"war is the inevitable result of monopoly capitalism"; and in recent
weeks the

threefold:

are

11)

page

nicate to it

of attaining this

purpose

objective

self expounded this

made

(Continued from

104-year-old pri-;

him¬

Stalin

Currency Parities

general partners and
partner will be ad¬

new

special

one

■V).'

stability.

primary

ofT
Fund is the expansion of in¬
purposes

ternational trade, the promotion
hand, this situa¬ and maintenance of high levels of
tion makes it necessary for the employment and the development
Fund to be particularly precise in of the productive resources of all

its

the

other

and
particularly members. The decision taken to¬
its'operations.
V day is the first step on the road

j statements

cautious in

pCjhree - months ago; the Fund leading to the attainment of thesereqiffStedTts ihembers to commu- objectives.

THE COMMERCIAL & FINANCIAL CHRONICLE

let's

Now

file Facts
2. Nathan's assumption

will

ness

least

here

much

that

all

earn

profit

was

safe

ground

prophet. If someone tells you it
going to rain next Sunday you

can't prove today that he is wrong.
By basing his case upon his guess
of what, is going
to^be, Nathan

automatically makes it impossible
for anyone to show today that he
is wrong.
But this much is provable.

than's record
such

Na¬

"guesSer" is not
to inspire confidence. For

example: He is responsible for this
on Aug. 15, 1945:1
"Un¬
employment is expected to rise to

"guess"

•

this: As just shown, Nathan

gives

profits for 1945 and 1946 by quar¬
ters. If one adds up those quar¬
terly figures he gets a total for
1945 of $88 billions and for 1946

vious reasons. /

$81.7 billions. On page 61 fig¬
ures are given, again by quarters,
for profits after taxes. If these are
added up they give a total of $36
billions for 1945 and $49 billions
for 1946. On the basis of these fig¬
ures,

So much for

•/';//

;

■

each of these industries the

the

its

wages

individual

taxes

22%; in the
industry

Even

late

dependent
would

observers
no

ability

upon'

Nathan guess. And, in the words
of the New York "World Tele¬

gram," "As
SO

hot."

prophet, he wasn't

""V, ;.1 •/,/, <.■■>

And the second fact to

ber

Not

only;

remem¬

has

Nathan

proved himself to
be
a - poor
"prophet" but he demonstrates ip
this report that his statements and

:il '"V\/

■

j':

MS?

statistics

must

appraised in
the light of which case he is try¬
ing to prove. Here is proof:
On page 59 of his report Nathan
gives the "Profits Before Taxes of
All Corporations
." from 1929

S®/®

DOES NOT show about wages and the
cost of! living,' .
.*

through tomorrow.

The last part

of the table is as follows::;

192

This'is

1943

._./.__,._24.9;

1944

1st

___

1946—
1st

■

...

necessary," etc., but "habits of
spending among families of the
types specified, and, secondly, de¬
fine the costs of living for these

24.8

—16.8

several groups."

*3rd quarter
**4th quarter

^'Preliminary.

* ^Estimated

•

final compila¬

Nathan points out that
Committee

four persons.

many

; ;

•

Nathan takes the figures for a
on profits since 1943—every*
thing since then has been merely family of. four in San Francisco
and compares them with the av¬
an estimate; the last government
estimate on profits was for 1945. erage earnings of one worker and
In brief, a fair presentation would fails to point out that according
to the 1940 census, one-third of
have noted: ;
,'/•
..;
tion

1. That
1943

all
are

profit

figures

since

mere estimates.

our

families

the

1946

figures are not
even
an
government estimate,
but merely his own
guesses,

and,
3. That there is

difference be¬

for the first
three quarters of 1946, which
he calls "preliminary," and the
last quarter, which he labels
"estimated," because they are

more
/

not,

possible

such misinterpretations
these by saying that they are
cidental

ther

fact:

Bureau

incidental.

explain

away

clusion

tween the figures

two

workers.
It

2. That

have

This

was

the

Louis

St.

"Starr

"General

345,940

Motors

em>

ployee pay roll last year was $l,r
007,563,689. An increase of 25%
would amount to $251,890,922. The
entire profit for the year/ was ;
$188,268;115,
A 25% increase, in
wages Zwith
no
corresponding; *
price increase
would put
this
■
company $63,622,807 in tlfe red."
"General Electric, in 1945, paid 3 /;
its 133,235 employees almost $400,* k
000,000. An increase of 25% ok /
$100,000,000 is exactly $43,459,445 «
more than the* entire net profit of / the company."
'
,

•43

l4h

'46

'45

-44

additional

$14,121,1341

Net profit for the year was $5,i
568,720, which would have made
it operate at a loss of exactly $8,-

552,414."
In each of these

^Bureau of Labor Statistics,

paid«its

;

employees in 1945 $56,484,537 id/®
wages. To add 25% to this would
mean

,1939." *40

Shoe,

"International

prices

the

cited

three

cases

Jusfc/

cause'such

are

able to give

prove the story he wants to tell.
How important this selection of

given

figures

dates is to the Nathan

show

would
disparity in

breakdown

enormous

conclusion the rate of profits

between dif¬

increase of productivity per many,,
hour of work, prices also

Even

up.

must go

Nathan. knows

this) )

shown by these facts/!.'.;;. /-//'!' ferent lines of business. /;
and before starting to work fok •
For example: Comparing actual
By the use of this selection he
itl,r
"proves" wages should be in¬ profits of the first nine months of the/CI|D,;3ie
In 1944 Nathan said:
*. His^ ,
creased 21 to 23% to get wages 1946 with the same period for
1945 we find a variation from plus
back
in line., with prices.
Had
tory reveals that' prices increase / 7|
£:v/./; v:A'•
Nathan used 1939 as a basis of his 156% to minus 86%.*
when labor costs increase.
It is// |
calculation he would have had t6
:
^National CityBank; "Economic then suggested that prices be/akr | !
say, that prices could advance a
is
,

adinittod

'fy'/■

the Hell¬
figures apply to a
family of four. But Nathan fails
to
point out that according to
official figures only two but of
every five families consist of as
.

The govern¬

are:

■

they

solely to San Francisco.

these facts:
As
Nathan presents this, table / the
only figure listed as, "estimated"
is that for the fourth quarter of
ment has issued

/■:. v

applied, to the!United States as a
whole. Actually ithe figures refer

22.7

—24.8

consider

1946. .The facts

//r/:;' vV/

Committee figures as though

19.0

—

Further, Nathan cites the Heller

quarter/— >—15.2

*2nd quarter

/,'■» Now

commit¬

tee, according to its reports at¬
tempts to show, not the "minimum

-_._21.2

3rd quarter
4th quarter

basic misuse of the Heller

25.2

quarter

2nd quarter

minimum

Committee figures.! That

;

for
details on wages, does 1945 arid so do not necessarily, re* "
Nathan giveonly over-all blank¬ fleet the
and prices, not a prewar period— et figures on profits? There is an
particular companies.
But none /
or
the end of the war—or any alLcompelling/reason from Na¬
It is this:
If the less these, examples reveal one lv
other period which would he log¬ than's/viewpoint.
Nathari gave a breakdown of prof¬ fundamental fact-^a-' fact which J
ically defensible.Nathan, in or¬
der to prove his point, picks that it
figuresr by industries, • to say Everyone knows; This fact is that i
very
month which will be best nothing of individual companies,
when there is a general wage id-* •
whole
argument would / be
for This argument. A month which his
crease
without a corresponding: l;
no
one
would select except to shown up as foolish. This is be-

of health and decency."

^24.0

1945—

"necessary to support a

In brief, Nathan uses as a basis
for comparing the trend of wages

amount

the

priced

Times". (Editorial, Dec. 12,-1946)';

those of

the i; committee's

being

standard

*1942

figures

as
ac¬

con¬

supported by the fur¬
In January 1946 the
Labor Statistics pub¬

further 29%

Conditions," Nov. 1946

before off setting, the

(manufacturing)
now being paid, which is the last
thing anyone wants. / '

increased

ind.

wages

Grb

I Trade
:

Nathan makes a great
show of giving / details, giving, a
break-down of wages in different
On wages

hiP'f.
^

124.

bitrarily held down while wages

p
'

* Up

156

Pulp & paper—-— Up 134«
Mfg..'. Up 125
Cement, glass, stone.. Up/ 52

study

and

Chemieals, drugs, etc Up
49;
categories.
He
gives
average
Service —i..———. Up /46
>urly
earnings
and
average
Food ProductsUp!
44
weekly earnings for durable goods
Iron & steel ....././'Up
43"
and non-durable goods, for cotton
/Other metal products Up
16
manufacturing, canning and pre¬
i Mining,
quarrying
Up
14
serving, slaughtering, petroleum
and coal, wholesale trade, general | - Machinery
Up ./12:r
! Petfoleum products
Up
4
merchandise, hotels, and so forth,
and plays around with these fig¬ p Electrical equip.' . ..Down
70
;
Autos & equipment Down " 86 /
ures by adjusting them for price
In the light of those facts; facts
changes, and so forth. Remember¬
ing this, now look at what he does with which Nathan is familiar, it
on business profits:
"./ "// '
is
nothing less than statistical

one.

which

can

disrupt com¬

petitive • forces,- with unfortunate.
consequences." ./ ("Mobilizing

for /

Abundance,"

by- Robert

Nathari| i-

a v

.■

// Miscellaneous
;

This is

most difficult administrative task

arbitrarily raised.

are

Whittlesey House, p; 86.)

'-1

One final example of how

;

than ignores
not
.

fit

those facts which da u

into- what

wants

;^'.Vi 1 /v,'

;/J
Na-/
to f.'OSS'.

prove:^-;///;-;;;:/:,/..£/!•///;///.
On page 14 of his Report Nathari
says:
to

"There is no evidence to,date

indicate that business will

cut £

showing
the
prices prior to a depression. .
'
"break-even point" for a typical
What does Nathan consider "evi- ; 3
honesense to say, as Nathan does,
On profits Nathan gives only
urban family. The BLS figures re¬
dence"? Look at these facts: ;
"*■.:,
ferred to 1944. If these figures are over-all figures.
Specifically, he that "corporate profits after taxes
Here are examples of price de*
will support a 21-25 % increase in
adjusted for the; increase in the only gives figures,. :and estimates
1 Report of Reconversion Director.
Na¬
;
.•
clines ,as revealed by spot checks
than, because of his official position at cost of living which has taken fop profits, both before and-.after wages "
j
But that is only half the story,
the time, has been generally credited with
place since then, bne getk a figure taxes,, for "all 5 corporations" and
in
leading 'cities, / declines that 'n
authorship of the report.'
"
the economic ; absurdity of
of
$44.23 as the
amount^ now fbr/V^ahufacfiirih^. iCorporatlbris,''
2 Fourth OWMR report,
p. 4This is
the Nathan' presentation—Within have taken place in the past feW
l&nother report credited to Nathan,
>
necessary for a family Jo "Sr6ak| Why, when he things; .ii desirlished

inO

can

/ raising

whole.
/
the Nathau
applied. This is a quo- />

from

„

cites

suppose

theory

Nathain

versity ; of California. Now here
of the things Nathan does
in connection with this commit¬
Nathan

let's

But

•

1946

tation

This is what

are some

wages

manufacturing

of the Uni¬

tee's report:

depends solely up6n the positiort £
of
an
individual
company,.. not;
upon the profits of the industry or

are

whether

creased //without

presenting his figures is the
of oversight.
But here is
an example of presentation which
cannot
be
explained away on
either of these grounds.
On page 57 of his report Nathan
presents '♦ a table purporting to 1
show how far wages are "below
the amount necessary to support
a
minimurri standard of / health
and
decency."
The "minimum"
figures Nathan uses

o'f

hence

result

the Heller Committee

manufacturing/ as/a?

Manufacturing as such r :
industry as such — ddefe not make profits. Only individual
companies';; make
profits, /and:/'

od of

remember is that it is based

profits.

—

appraising the Nathan re¬
port, therefore, .the first fact to 3

300% to

over

than

whole to pay higher wages out
its

://.

„

;

range

90%; Of
machinery companies, 18 show
increase, 12 a decrease; of 46
auto -and parts companies, 29 are 5
down, 17 up.
; /
!■'. /
:
None of these facts, except per>haps in their details,news to1
Nathan.,/ No one who makes a;
study. of business profits could /
possibly miss them. ■//■/
Clearly, it is sheer nonsense to
talk, as; Nathan does, about the

'Consume/

single word- in the table to in¬
unemployment, Nathan was. still?
dicate that the quarterly figures
responsible for saying:2 ".
High!
are' not absolute amounts.' Fur¬
unemployment will persist through'
ther,; in the chart accompanying;
1946."
the table these quarterly figures
On Oct. 29, 1945, in the notor-;
are given as absolute figures—on
ious
OWMR
report
on
wages
the same scale as the absolute fig¬
which
was
permitted to
"leak
ures for the totals of earlier years.
out," and in which Nathan, be*'
Finally, at no point In the table
cause of his official position must;
is an aggregate figure given for
have concurred, it' was said: "Thei
these
years,
thereby protecting
total
decline in y salaries
and ■
the reader from getting the wrong
wages (in 1946) will
amount
impression.
■
y ;//:/£''':n/V:/ /■"'/
to between $30 and> $35 billion:"'
One may say Nathan's record of
Actually, the decline has been;
bad guessing is the result of poor
only $5 billion so Nathan was
judgment. One may say his meth¬
wrong by a minimum of 500%/,
.

equip-

changes

serious reconversion!

electrical

•

were

plain away this absurdity by say*
ing
the
quarterly figures are
given "on an annual rate basis.":
there!
But the fact is that there is not a

that

clear to all in-;

was

decline

116.8

October 1945, by

which time it

increase of

decline

from

vary

from

in¬

nine

first

the profits of

companies

ment

of almost 200 %.

error

the

increase of 257%; to

that is

for

in taxes in 1945, and
wpi.pay $32.7 billions (81.7 minus
49) , this year.
Obviously this is
absurd. By Nathan's own figures
from the same tables, it would
business

49%

indus*

over-all

months of this year,

':</$&•'} :/''!—

and the cost of living,

crease

ex¬

In the chemical and drug

try, which shows

prof¬
also

For

minus, 36)

that

companies

by wide margins.
ample:
"
;

business paid $52 billions (88

mean

individual

vary

not

they do

tell the whole story-

again

But

correct,

general appraisal

Here is what Nathan shows

■

of this report.

within three
quadrupled from 1944 to 1945.
months; perhaps to. 8,000,000 be-i
Nathan,
fore next spring.
..." Since maxi¬ Everyone,^ including
knows there was ho such increase.
mum unemployment was 2,700,000
Of course Nathan will try to ex¬
5,000,000

■

granting only one
much
faster
than
wages.
The
in the family.
In
manufacturing the average figures he uses to prove this are
weekly earnings -(Oct. 1946) are for the period from January 1945
$45.83
as
against
the
"break¬ to date—January 1945 being the
even" figure of $44.23. These are very month when weekly wages
all official figures.
Nathan does reached their peak. In this, case
not even mention them, for ob¬
such figures as Nathan gives are

■

softie, of

look

// //> .
//
Nathan begins by purporting to
show' that prices have gone
up
earner

even,"

than his own

That is bad enough, but look at

from

nothing

estimates.

that busi¬
to

on.

Nathan
a

continue

the Nathan Report

vs-

(Continued from page 7)

details.

Thursday, January 2, 1947

■

v.".

~j\ f.O

j '.it!: >}i

■

•

;

Volume 165,Number 4556
weeks.,

("Wall
Dec. 19, 1946):

Street

THE

Journal,"

•.

Down 32%

—Down 20 to 50%
-.——Down 10 to 40%
Fur coats
_Down 15 to 48%
Furniture .......Down 20 to
Glassware

10 to 40 %

..Down 10 to 64%
_.—/_ .Down 28 to 47 %

Sport shirts

Down 20 to 50%

—.J—

the

extent

that

Down 28%
Down 40%

Plastic dresser sets——Down 50%

eryone,

bracing

fit/ If prices are held and wages

—1—Down 25%

Costume jewelry —1—.Down 50%
j..r.Down 20%
Cotton -house dresses.iDown
47 %'

Diamonds

are

after

commodity

the

Here, then, in a word, are the
alternatives which today face the
American public:
;i

competition

single city

Maryland,,

keynote of all

efforts

•

our

the

initial

sembly

as we

tempting offer.
to

/;•

this

Yes,

Nathan
He

know

must

cannot

the wage increase.

these

[ help but know

omits

fact

every

The

become

which

contrary to his thesis. Just as he
arbitrarily
selects?
those
dates
which

best

are

for

his

pleading.

Just

thfenkas .-'facts;?

he picks " esti¬

Just

for

public.

he delib¬

Only the first

ternative, keeping, the
lower' prices- can:

of the air and presents

way

man, twill

As¬

expect them to de-

al¬

normal

the

bring

—for
may

This

and

panel

are

ready to set up Emergency Boards of Inquiry to con¬
duct formal hearings and to make

without; interfering / with

disrupting
their neighbors... No
or

recommendations

for

settling

any

the

unfamiliar

am:

with

Agreement in the light of

still expressing

are

Mr.

Meyer

Vice-Presidency at
v

res¬

Mr.

and

Meyer at the

Will Insist

dent should lack

President

ex¬

non

cussed in World Bank

the

name

who. has

Vice-

back¬

such

In any case. Smith's resig¬

nation

dis¬

what

means

after Mr.

circles for

says,

and

Meyer

Canadian

other than Graham Towers.
ever, they were deterred
fact that very soon

Meyer's

spirit

How¬

by the

takes

successor

/;//- /"/' /''// ,/'•■:'%/

over.'

President, the British wanted to
advance

Meyer's banking

he is not expected to remain long

Americans'

Presi¬

ground, and this Smith does not

President

Among

Bank

experience, he will need

American.

all.

If the next World

have..

took

the

public

post

service.

the

reliably reported that he had not

after/ the of¬

carefully read the Bank's articles
that Eugene
of agreement before taking the
Meyer would resign shortly, Un¬
dersecretary
of
State
William job, perhaps assuming that the
Clayton appeared personally be¬ President of the World Bank was
ficial

will

announcement

fore/ the

the

arguments

Clayton conceivably

Harold Smith. If Mr.

perience."

union

rectors

employer. Thereafter, it
will attempt to mediate.
It will

(Continued from page 13)

sibility for settling their differ¬

the

which

not be personally responsible.

ignations

the

Eugene Meyer or with the innerworkings of the Bank, but if
something is wrong I have no
objection to reviewing the Articles

of your own group with an equal
number of labor and management

representatives.

re¬

not

mystification concerning the

what is behind the resignation of

sub-committee

have

are

intervention in the Bank's affairs

are

Bank,
Representative
Spence / of/ Kentucky,

•

writerr

are

panel,

opinion

said

repre¬

American

Latin

unfavorably/ although

Many here

his

who

Machado/

various

begiftning really intended to stay
the House Banking
Currency Committeeof the only six months, they are ask¬
expiring Congress, stated to the ing why Mr.. Smith accepted the

the dispute, to

peace

Mr.

and

peaceful/ settle¬

may prefer

for

re¬

necessarily vocally, to this direct

Recent

developments

directors,

Chairman of

hear the report of the conciliator

also

sents

cooperation."

Brent

will never be asked
to* sit in j udgment on the merits
of these disputes.
v
"•••/"
//'

U.S.

lives

in the

World

ment. / You

That, we believe, is; the proper
policy for America today-, ,„/•

Mr.

Bank.

executive

mere

Bank

/ Asked

you

conciliation. efforts

failing

•

the

They, don't want
figurehead

Chairman Spence's Comment

important
disputes when it appears that our

open

serve

bring to

American

the

portedly including the British and

stigmatizing the efforts of the
U/S..A. in matters of internation¬

the activities of his of-

^Tou

the nation's welfare

countries,

World

disputes which threaten to disrupt
the life or the economy of the
area. Director Manno/ your Chair¬

erately makes comparisons which

ences

seem

acted

function

Second, you will be asked to
assist in the mediation of specific

Nathan

public interest;

special

mates put;

Some

running

actual
power.
This set¬
is all out of harmony with the
way in which great corporations

fice/z /'//;/

report is an at¬
tempt to fool the public into
choosing the .alternative of higher
wages, which means higher prices.
That, obviously, cannot be in the

Just

case.-

.■
As between ! these two alterna¬
tives the choice is clear;
,

thiem.- But he- ignores these facts

in, order to "prove" his

ports

therefore

head

Bank's

facts.

been

should

that

up.

media¬

1'. Hold Wages steady and'thereby
J
First, I am asking you to- accept
keep the way- open for corn*
/ ; petition and buyer resistance to responsibility for reviewing the
work of our Philadelphia Branch
hold prices to/proper levels.*.
know that today, in market after
Office both for the effectiveness
market, buyer resistance" is forc¬ 2. Give another round of wage inof its mediationefforts and for
ing prices to crack. creases and thereby force prices
He should
the impartiality of our concilia¬
know that the worry
still higher, higher, as shbwn
today among
tors. Director Manno, who is one
the- market experts is not whether
by the experience earlier this of our ablest
men, will furnish
prices are going higher but how
year/ by j ust about the amount
you monthly with' complete /Re¬
long the present levels will
of
hold,

and

under the directors who hold the

is*

beginning to operate, which
inevitably means the end of the
upward swing of prices. He should

have

men

from what

away

activities

will

should

pable

area.

but I would like to outline

you,

down

to the bank and get it under

"Lately great difficulty has been Clayton further said that the
experienced
in
obtaining
and United States ^Government feels
holding a President of real ca¬
that the executive directors should
pacity/Upon further understand¬
ing of the Bank Agreement ca¬ elect an American nominee.

not confined to

are

President

Meeting last March an under¬
standing
was
reached
that
a
European would head the Fund

flexibility and we
hope this Assembly will operate
as flexibly as is
humanly possible.
I have no rigid pattern to
impose

suffers
few; work¬

getting the raise.

ers

"The
tion

everyone :

relatively

come

con¬

unified industrial

and most of

•:

•;
Nathan should know those facts.
He should know that in commod¬

ity

increased,

except

career

the

way.

It includes Southern New Jersey,
Eastern /Pennsylvania,
Delaware

including labor, will bene¬

Crib blankets

•

from

single state/ Your Assembly
will operate over a territory em¬

by which it can reduce
If prices are reduced ev¬

Pajamas -

agreement, and remove
them,, in order that capable men

any

margin
prices.

staff

the boundaries of

has profits out of which
it might pay higher wages, to ex¬
actly the. same extent it has. a

Rayon- print dresses.._Down 24%

its

and

ciliators.

company

u-___i____Down 34%

Leather jackets

persons.

Down 17%

Women's sweaters —Down25%
Wallets

vice

The Nathan program, if
adopted,
would aggravate, not correct, this
stiuation for tens of millions of

——Down 20 to 50%
—Down 10 to 40%

cases
T

(Continued from page 11)
original

50%

Mahagony tables-. Down

World Bank Outlook Causing

It
is
true, as
everyone
come well known as the "Toledo
knows, that prices-in this country Plan." More
recently Louisville
today are high. It is also true, as has undertaken a similar enter¬
everyone knows, that profits of prise.,
many companies today are high.
; V
Career Conciliators
And finally, it is true,; as every¬
/ We
have - studied these plans
one
knows, that millions of per¬
and have picked the chief sources
sons,
especially
white-collar
of strength' in each.
To this we
workers are finding it increas¬
have added the Conciliation Ser¬
ingly difficult to make ends meet.

Lamps

Cigarette
Rugs

delphia idea was carried to Toledo
through the efforts of Edward
McGrady, then Assistant Secre¬
tary of Labor, where it has be¬

port.

couches ——.Down 38%

actual

basis of the so-called Nathan Re¬

Boys' suits -„.„„...Down 35%
Gas heaters

Tricycles 5
Housewares

the

Such, in brief, is the statistical

65%

Toys

square, with

facts.

Men's wool robes_„
Down 35%
Ladies' handbags,/.—Down

Studio

not

COMMERCIAL & FINANCIAL CHRONICLE

felt

Bank's

the

Executive

that the

say

Di¬

comparable to the President of

commercial

should " go to an
American,
Mr. Clayton - argued
that at the Savannah Governors'

not; however, make any findings
or public recommendations,

post

the least, this

say

the

American

bank.

is not

case..

!«

exactly
,

/■./,/

;
■V":/

'//

In' disputes vital to the publie
safety, especially- utility/disputes;
.

'-a.

■

inflexible, order, no Government dispute-that affects the; commu¬
on
directive, no red tape can now be nity or the national welfare. How* you may recommend that the pari¬
blamed as the pause of work stop¬ .ever; such boards will be used ties consent to presenting their
pages* Now the full responsibility only with the joint consent of arguments to an Emergency Board
/////
of Inquiry which will make rec¬
for keeping the wheels of
industry both union and employer.
(Continued from page 14)
ommendations
on
the' evidence
turning rests with the men...of
These are the tools which, with
struction and development re¬
/ ular
presented.
management and the men in the our
products, endeavor should
regular. conciliation machin¬
be made to secure agreement V
quire.
1 ■
shops—the men whom you repre¬
You;.may refer the "dispute to
ery, are available for the use of
one
sent in this community;
of -our Special Conciliators
on
In dealing with1 trade restric¬
clearly defined principles
-.
management and labor; in work¬
/'
whom you believe is particularly tions)
to govern the trading methods
The members of our national ing out their own agreements."
(during; / reciprocal
trade
suited by background or talent to
of state-trading vis-a-vis the
Labor - Management
'agreement negotiations, American
Advisory
On Dec/ 9, with the
complete! continue the: mediation efforts. //
enterprise
system.
negotiators were 'Urged'? by the /; private
Cpmmittee are in full accord on
backing of our advisory commit¬
Such principles,
i
this point.
set forth in
Of,! you' may*1 recommend that Council to be guiddd by the fol¬
They have accepted tee; \ye began the work of further
the responsibility without quali¬
/ the brief, would place certain
the'parties-agree to voluntary ar¬ lowing .considerati'oflit w
/,
strengthening the machinery for
fication. At the same
bitration. I don't expect that this 1. All excessive and !unnecessary Z| fair restraints on the vast buytime;' they maintaining % peaceful
industrial
;/ ing and selling powers implicit
have worked out a program with relations.
i tariff, duties should be elim¬
On that day, we invited grotip or any panel of its members
in state-trading, in return for
which .the
inated,, and tariff rates of all
Government, through to .Washington the representative^ will ever, themselves, be used' to

Wants International Trade

Multilateral, Non

Discriminatory Basis

;

the

United

Service,
tween

States

Conciliation

the

utility industries, manage¬
can aidvnegotiations be¬
ment and iabo^./T^
employers
and
unions -tended our
conference, National

where such

assistance

desired.

leaders

on/ both

sides,/ accepted
•their responsibility to the com¬
^ Four Special Methods of 4
munities which they serve/ They
/
Z1///;// Mediation • /
/ are
now/working out details/of
Our national advisors have rec¬
specific programs to insure peace
,

arbitrate-

dispute.

/'As 'this
Assembly begins to
function, I know that you will be
able
to
suggest other ways
in
which it

can

ating agent.
do,-

be useful

remember

that

ommended and

pleting work

we now

are

com¬

the development

ron

of four special methods of media.

tion / ■,:/';;/ y.r- /■; / V;; ///
,

We.

men

will

soon

names

their industries.

•in

Finally, in the public interest,
have called you together in
joint assembly of labor and man¬

'we

///'/*/////:

announce / the

agement. We have asked you to
with us for a year, to help
make collective bargaining work

special;conciliators,

outstanding ability * and
special talents, who-have agreed

"more

smoothly,/with fewer inter¬
ruptions of production. We don't
special disputes.;'• //4/>/
expect perfection!?! No "free so¬
.Weiare prepared to furrtish laz
ciety is ever perfectly ordered.
to* be available

bor and

aid

our

call,-to mediate

management advisors

) conciliators

appears

tripartite

will

securing

settlement;

as¬

screened

our

and

cleared

impartiality

for

'regionalLabor-Management

Advisory Committees.

do believe

reduce

length

stoppages

This
local

that you can help
the
number and the

of/the

area.
-

•

•We will have available for
been

that

aid

signment 200' arbitrators who have
competence

specific

disputes whenever it
mediation

in
/

not

the first

time

this

///
that

have been asked to
disputes. The first such
project ill
recent
years" began
right here in Philadelphia in 1933
groups

mediate

under

tional

ernment

can use

table

are

at the
to

3.
;

Board.

The

Philar

sion

Except for health, sanitary and

restrictions

/ should

which

the

state-

"/"//■•:'••
constitute

dumping in international trade
should be defined and prohib■;:/ited.
.■z:/•//:;/:/• z••
8.; Antiquated
and 4 burdensome
/ customs
regulations, with re-

ments should be abolished.

/ tive

accorded

7. Practices

arrange-

/ : similar reasons of public policy,
all prohibitions and ' quantita-

our

policy of free collective bargain^ing. \
'/
*
'
*
•

trading countries.

•

tariff

»•)

bargaining

maintain

imports

removed

spect

/• customs

which
laws

United

States

and

regulations
// are among the worst offenders,
/ should be- relaxed or removed.

the

earliest/possible date.
As to
import restrictions imposed for
sanitary reasons, alleged sani- 9.. Effective safeguards should be
extended to the property and
tary measures should not be
;■
utilized to give unwarranted / /other interests of nationals of
each country in the territories
protection.'■ //(,/;Vy\.
/ of other countries.
4s. As a general principle, all pro¬
/

Goldman & Go. to Be

•

Formed; NYSE Film

hibitions

Goldman' & Co., members of the
York Stock
Exchange, with

New

offices

115

Broadway,

and

;•

strictions

removed.
bounties

New

York

City, will be formed effec¬
tive Feb.. 1. Partners will be Robeft J. Goldman/ Louis H. Gold¬

man, ^member- of the; Exchange
and William.Siegel. R. J. Goldmaft
and Mf

Sefgel haVebkeri partners
the auspices of the Old Na'-' in
Jariies M, Leopold & CbV, which
Labor

only-

is the power of persuasion.
That is the only power the Gov¬
power

would

age the

2. Preferential

you

serve

.of

point necessary to encourwidest possible expanin the exchange of goods
/ among nations.
• : .

•/

your

„

| most-favored-nation treatment

/ the

•

medi¬

But, whatever

,/ which lowest rates of duty and

countries should be reduced to

•

will be dissolved

J an. 3 L:

ployed.
Exchange

quantitative

The Council

re-

Export subsidies and
should

be:

not

■/':.

'/■"

controls

should

ciprocal

em¬
:

•

recommended that

if it is not feasible to incorporate
some1 of
these conditions
in re¬

exports should be

trade

commitments
at the

agreements, then
be obtained

should

time of negotiation

of re¬
agreements
that

eliminated at the earliest prac¬

ciprocal

ticable moment.

other nations will enter into other

6. In-

negotiatibris with countries
Engagedin
Statertrading or
maintaining" '* government' mo¬
nopolies in the trade of partie_

trade

of agreements«with this
country or take other necessary

types

action to

secure

the establishment

of such conditions.

•

THE COMMERCIAL & FINANCIAL CHRONICLE

chasing

but

Sees "War Honeymoon
(Continued from page 13)
aiess.
The
same
argument, was

why
headed for higher

used last summer as a reason

the market was

levels.
market

that time the
declined by about

since

But
has

20%.

/ The

/• ;/y

(

supply

to the money

key

be found in the distribution
of savings and in the attitude of
the holders.
In a sample survey

may

the. Bureau of Agri¬
cultural Economics for the Fed¬
eral Reserve Board it was found

conducted by

the

that

liquid

savings

the

country,were highly concentrated
in strong hands.
The top 30% of
the families hold 87% of,the total

liquid assets, and the members of
this group are. not likely to use
their, savings, for non-urgent pur¬
chases if tbey believe that.Jhere
are prospects of lower prices. The
bottom 40% of the families hold

by
the parity

farmers
price to

would

cause

decline still further.
Since

farm

constitute,
in

the

prices

commodity

element

important

cost

consumer

particularly of food,'-as well as of
basic raw materials, the decline
will be. reflected in the entire

./!/!'':t;//'/'//f/ /'''v/-//

price structure. '

decline in commodity prices

restraint

imposes
who

back

have

would

hold

buyers,

upon

tendency

in anticipation of

still

prices. On the other hand,
seller? would become anxious to
dispose of their products before
prices went lower, /The combined
;action of buyers and sellers has
a
tendency
to
accelerate
the
downward movement until some
resistance level is reached. Should
lower

have

combination of depres¬

could

the trend

carry

upward beyond logical limits. So
likewise, it is possible that a com¬
of

bination
could

made

similar

was

held

,V • v, ;

proposal

that the automobile

dustry could give
without

crease

;

The

30% wage in¬
advance in the

/In

view

Outlook

Long-Term

and

distorted

the

bloated condition of

our

economy,

it is essential that corrections

in order that business may

made

proceed

basis.

sound

prudence
adoption of

the

Con¬

would

sequently,
tate

dic¬

conserva¬

tive course and the adjusting of
policies to meet the keen com¬
petitive. conditions
that? will

henceforth

riod that

1'• Jy00

prevail.

Following

adjustment pe¬
would bring about a bet¬
an,

ter balance in

economy,' pros¬

our

industry

the

but

conse¬

quent costs were so great that the
OPA permitted an increase in

Despite

prices.

this

price increases, the industry
tained

for the first nine

of this year,

sus¬

decline in the potential market for
automobiles. .Not only were huge

row

satisfy

order

wants

But mass buying is

rent income."

sensitive

price

important

changes.
In the 1919-20

period, the large

supply and backlog
mand were given as reasons
the continuation of good times
an indefinite period: / Despite
rise of 92%' iii combined total
trorri

one or a

authorities

Most

combination of

fied

and
June,

the
de¬

moriey in'/circulation
i§l$, tb ^une, ;1920,
deferred demand
a n d -building

and

the

for

automobiles :

great

mysti¬

to what caused the slump

the stock market last fall. The

decline

1920!

heralded

business

announcement

maker

was

by the collapse of the
boom and the Wana-

de¬ Japanese
for
for

still

are

■.

money

posits

any

several factors could touch it off.

20%

price reduction across the board.
The decline in 1937-38 followed
announcement

the

Roosevelt

prices

durable

that.

were

reinforced

President

too high, and

goods

this

was

by /.deflationary fiscal

policies. > The point u, is that the
initial impulse that may precipi¬
tate a setback may come without
much warning and from unex¬

materialization in
later years, there was a decline,
Irom the peak, of 47% in the stock
mhrket, of 45%
in commodity
pected sources. '">:■/// 000 ■ '!/ •'"
prices, and of 33% in industrial
production between 1920 and 1921, ■■,,
t' ■.'Extent of Decline
It is pot intimated that the exact
There are no prospects of a de¬
pattern which followed the first
World War will be repeated, but gression comparable to that which
it is merely emphasized that, the began in 1929, because the busi¬
ness pattern is entirely different.
presence of a huge money supply
which

and

found

heavy pent-up demand can¬

not be relied upon as

against
if

there

It is true that

recession.
were

bulwark

mass

fear

of cur¬

inflation the huge savings
would
be.! spent regardless of
prices as/ people would .rush to
convert their money into things.
But there are ,ho signs that; these
conditions now prevail.
'; / '

rency

that

hausted

period, business had ex¬
the pent-up demand in¬

the? deferred

after

been

have

fop business as well

requirements

met, attempts will be

bile industry in, 1946, but also', dis¬

regarding inconsistencies, warn¬
ings were made at about the same
time that there would be eight
million

profits next year will be around
the

peak of 1943, when

war

duction

present and the Government

•

the

credit

expansion

domestic

extension of for¬

the

and

eign

36%

was

larger than

was

the
of

principal customer, with ccsts
secondary importance. We are

loans. Should this be the
case, then we might sometime in
the future,face a period of critical
readj ustrpent, because of the bur¬
dens
of /the staggering Federal

told in effect, that the boom will

debt and other high and. inflex¬

It Is Unfair

ible

items

would / be j

of■ the. .budget,

the

acid

form

democratic

that

test of our
Government

and

private enterprise.
It be¬
hooves us, therefore, to be keenly
of

aware

the

hazards V that

ahead and to formulate

policies to

tivities/

keep

the

lie

plans and

various

ac¬

after

upon

us,

for, it is ob*
correc¬

major depression is

was

riding along

i"i

In order to get public support,
organized labor is ostensibly cam¬

paigning for

substantial increase

in compensation for all employees

but,

is evident, this is, impos¬

without

sible

| i
-

■

John

M.; Marston,./ Cleveland, !

limited

Ball, Burge &

partner in

Kraus, became

general partner,,

effective January

' • ' y ■
^
George Bader retired from part¬
.y
nership in Brady & Garvin De¬
cember 31.

/
; /•
f '
'
Transfer of the Exchange mem¬

;;

bership of George F. Brenna'n ioC. Gilheany will be con¬
sidered by the Exchange on Jan¬

James

Mr. Gilheany will con¬
partner of Bull, Holdeii

uary 2.
tinue as

V;^/'

Colvin

Bailey dissolved/ oil
;

V';U>

// Kenneth Boardman, member

the Exchange, and a general part^
ner in Carlisle & Jacquelin, be-!
came both a general and limited^
,

partner on January 1../
'.
v ^
;
Fairman R. Dick, general part¬
ner in Dick & Merle
Smith, be¬
came
a
limited partner effective?

wrecking private
enterprise, -.: In consequence, the January 1, on which date Trow-:
y
unions will proceed. to make: sub - bridge Callaway, limited partner,/ ■/>,";.
4
:i ^
stantial;increased wage demands became 3 general partper.
for

their

unfair

most

of wage

the

round

second

groups
first round.

that

received \ the
,

On the olher: hand, many mil¬
lions of persons have received no

Trice Spiral

Interest

increases would go to the

same

The Threat of Another Wage-

This

members.

own

v.,

•

changes:

December 21.'

Organized labor is campaigning
increase in income since V-J Day,
borrowed
to win public support for another
and
a
further
increase in the
)
1 A
substantialtiwage boost, which it
The; situation in many? respects
wage-price spiral would cause an
maintains can be granted without
acute squeeze on a large* portion
is quite similar to that at the end
a consequent price rise.
The pro¬ of
</.. ouiv population, ? particularly
of the first World'War: But there:
posal is unsound, untenable,: uhp those with fixed' incomes. Moreare significant differences. There
fair and untimely.
over, farm income for 1947, ac¬
is
now
much less credit strain.

and

money,

Exchange/

has announced the following firm-

get bigger and better in the face
of the passing of the sellers' mar^

herited from the first World War

The New York Stock

bounds,

viously too late to make
tions

Stock Exchange

bf/tpuri^

reasonable

Weekly Firm Changes

pro¬

ating at unwarranted high levels

revenue

for the Government.

profits predicted for the automo¬

made to keep our economy oper¬

above the se to be met out of cur¬

;

wage payments and higher income

sive factors converging at about pects are that we may look for¬
total liquid the same time, a readjustment pe¬ ward to a period of prosperity
.unemployed before spring
assets, and average about $40 savr- riod would surely follow, r //•»*_
which, with minor interruptions, of | this year., whereas there was
ings per family. Moreover, a large
may continue for several years. actually a labor shortage,.
•
Finally, in considering the "tim¬
But unless sound policies are fol¬
part of the savings in the lowest
J/In view of the past record of
ing of ; a possible - recession, ' it
income groups is being absorbed
lowed
and
restraints
exercised
should be borne in mind that the
prognostications, - it is not likely
over, speculative excesses, there is
by increased living costs, and it
that the public will take seriously
business situation is vulnerable,
will be necessary for them to bor¬
grave danger that atsorpe stage, the Nathan forecast that corporate
and

only about 1% of the

interests, whether la¬
management, but in cooperation for increased productivity,
wliich is the source of greater

bor or

months

while the boost ip car
caused a substantial

has

prices

by special

net loss of more than

million

arbitrary and exorbitant demands

other

and

:/,V;

gains at the expense
community. The
road to industrial peace and higher
living standards does not < lie in
of the rest of the

cars.
After a long strike,
substantial increase was granted

grab more than its fair share

of industrial

price of
/

Conclusion
public should not give sup-?v<;/;

port
to
any
organization that •(
through false propaganda attempts

in¬

s' /,

the

At that time

the war.;

end

forces.

the estimated "staggering" profits.
It was this same authority that

factors

warranted by

seems

the fundamental

ing, which is the basis of the claim ?•
for higher wages,
/ - '
;; ••:;!//

be done because of

can

business

unfavorable

cause

decline than

living,

forces

ful

the strain of the high cost of liv- V

power

not; prices,. and;

that this

purchased

goods

Thursday, January 2, 1947

ceased

/late

the

Feckenstein

Foster

December

John

H- 0

Adams,

31.^ 'h-'

///:|

Draper withdrew fromt
partnership in Draper, > Sears 8c:
George

Co. On December31.

retired,

frorn»

limited partnership in W. D.
ison & Co. on December 31.

Grad-

David

Feldman

Percy W.. Brown of Cleveland,
general partner in Hornblower Sc.

Weeks, became both

general and

limited partner on January 1. , '//
Jerome Baumann
and Miltom

Roth retired from partnership ins;
cording to estimates made by. the
It Is Unsound k
Jacobs & Low December 31...///•! /,United
States
Department
of
considerably larger. The ac¬
Interest
of
the
late
Edward
/.vThe labor demand is based on Agriculture, will be substantially
bor productivity on the increase, cumulated backlog of demand is;
Roesler and the late Henry Mcthe Nathan report that business less than this year.
,,
'• .
...
v<
business confidence restored, and greater because our participation
Sweeney in Laidlaw & Co. ceased
enterprise .as a whole could ad¬
Should the unions skim the
the economic machine running so in the war extended over a longer
as of December 31.
/
vance wages 25% without any ad¬
\
cream
of : profits during every
Non-agricultural prices vance
smoothly that the slackening in period.
Transfer of the Exchange mem¬
in-prices. ; This proposal is
temporary
lush
period,
there bership of the late E.; Sanford
non-durables would be absorbed have experienced much less of an
based on false premises'.1' It' as-t;
would be no prospects for busi¬
by the expansion in the durables, advance ^as cdihbared to the' first sumes a collectivism
Hatch to Robert S. Byfield will
economy; With ness
World War/5 While prices of farm
enterprise to build up a re¬ be considered
we might be able to ride out the
by the Exchange om
all profits flowing intd; a comrhdri
serve for a rainy day or to pro¬
commodities hWe had- a sharper
period without any shake-down.
reservoir that can be dbafon updfr
Januapy 9. Mr. Byfield will con¬
rise than during the first World
vide the funds for expansion and
But it would not at this juncture
tinue as a partner in Lewisohn 8c
for extra employee compensation
research that- make possible the
appear prudent to make plans on War, the farmers as a group are
Co.i;
whenever there is a surplus
lowering of prices, and by thus
"the assumption of such a series of in a stronger financial position,
A. F. Egelhoff retired from part¬
flow.
Instead, there are abolii broadening the market create jobs
favorable developments.
with, the mortgage debt about one,
■
;
nership in C. B. Richard 8c. Co.*
three million different firms cov¬
and
half as large as the peak in 1923,
provide for higher • living December 31.
yyyfjff,
ering innumerable types of activi¬ standards,V'-wl(>'?■['%
and liquid savings /considerably
/
'
Timing of the Decline W t;
Robinson & Co. dissolved effec¬
ties, with a wide range of profits!
larger^ although highly concern-'
tive December 31>
An attempt to time a major
Over the past decade and one half
trated. Furthermore, the Govern¬
It Is Most. Untimely
•
turn in business is hazardous be¬
the number of corporations that
; Amelia
Viner. general iDartneri
ment
is
committed
to
support
in Edward A. Viner & Co., be¬
cause of the many cross currents,v
did snot report any net income
To make demands for extrava¬
farm prices
at around 90% of
comes a limited partner effectivebut there are some indicators that
during each of the years in the gant, wage increases at this stage
parity until two years after the
may serve as a guide.: Following
period ranged from 33% in the when there are indications of be¬ January
official ending of the war. In addi¬
the
expected
record - breaking
peak war year 1943 to 73% at the ing, at- or; near the crest of the /./ William Sheffield Cowles, lim¬
tion,
unemployment
compensa¬
Christmas sales, it is possible that
low point of the depression. The boom is most untimely; since such ited partner in Wood, Walker 8c
tion and other relief will be pro¬
there may be a lull in buying,
Co., became a general partner od
average net return on capital in¬ a procedure would aggravate dis¬
vided,
whereas after
the
first vested for all
with consumers'resistance becom¬
the corporations tortions!. in
/N''■
ir*'"
purchasing
power January 1. /.//,;:q
World War the official disposition
during the 15-year period was among the various groups and
ing more pronounced. Most of the

"Should

have

period rela¬

tively free from strikes, with la¬

Corporate and individual savings
are

•

nondurable

lines

have

been

of the Government

joying an unprecedented boom
but the peak has-been passed and
slackening in sales is indicated.
reported that strikes for in¬
creased' wages are scheduled dur¬

It is

ing the first' and second quarters
-of 1947. But the most important

single factor is the expected slump
in agricultural commodity prices,
which may come during the secHond or third quarter of next year.
While the Government has
binder

the

prices of

floor

major farm

products,
it is estimated
that
prices could decline about 25%
before hitting this level, and the
lowering of the level of prices of

was

en¬

to let

na¬

ture take its course,:. So prospects
are- that any decline in industrial

production will not be
the'"one

centufy ago.
There

had

are

severe

quarter of

made

have

firms

some

The facts are thht
large

meth¬

might well precipitate a business
recession, with its,attendant heavy

profits, others moderate gains, and
a substantial number have merely

unemployment. The situation calls

losses.

unward;.;revisi<pnF,.Qfi prices.
It
would best serve;the cause of the

broken

even

suffered

Consequently, it is meaningless to

scientific

only about 3%.

for

idownwardlfraitber,!than an

wo,rkefs and. all other consumers

influences of the many forces, in¬

over-all average of
enterprise.
Furthermore, as wages directly
and
indirectly constitute about
90% of all costs, higher prices are
'nescanable, unless offset by in¬

cluding

creased

Moreover, it is highly
probable that within " the course
of the next six months, food and

that

ods

can

relied

determine the extent of

decline
there is

possible

business
way

mass

contribute

upon

activity, as
of measuring the

psychology,
that
shaping s the

toward

business pattern.
;0rr;,aiis;:..i
But it is
evidept tJiattJ9|7/:>Will
be

critical

obscured

witp outlook
by uncertainties. Power¬
year,

speak

orofits

business

for

productivity, which

not been the

',vp?

base/

rVUi

<»■

«»'. Jut;.

has

v';~o
nxfiJ,

t'a

the

sive

unions

powers

used

with

concerns

their

induce

unusually

real

wages.

« Is .Pntenablq; ■■
^. clothipg,; which constitute about
/The i,
Natb4q^Qrep9pt ...contends 55%,pf the family budget, will be
that the only -.way to
expari^ pur¬ prifced downward and thus relieve

immnm

•

Mark
the

Greek Mission

\F. Ethridge, publisher of

"Courier

Journal", of Louis¬

ville, j l^y., has been ' .appointed
Americpp representative on*f the
United Nations Commission to in¬

alleged Greek border
according to advices
high from Washington from the Asso¬
their ciated Press on Dec. 21. Mr. Eth¬

persua¬

business

profits to lower prices of
products and thus increase

Ethridge

vestigate

violations,

ridge, who at one time investi¬
gated political conditions in Yugo^
slavia, Bulgaria and Romania at
the request of Secretary of State
Byrnes, is to have two or - three
technical assistants," not as yet
named.

i:'

.Volume

Number 4556

165

THE COMMERCIAL & FINANCIAL

flotation

Trade Agreements Program Believed in No
(Continued from page 8)
amend it so as to cripple the pro¬

attitude

and prevent the projected
negotiations with 18 major trad¬

sioners

agreements

ing countries in April,

years

such

gram

"But here

are a

'/"No statement

opponent of,
agreements program.

nothing hew,
attacks

The/e

,is

sales in Canada

indication

the

tenor

Congress.

new

Opposition Not

the

///

Republican

/ - > "There are positive reasons

for

Jbelieving

that opposition to the
trade agreements program will
not be a Republican plank. Both
Dewey and Stassen have come out

indication

that .they

rade agreements program.

/■"Undoubtedly the hearings be¬
fore1 the Cdmmittee for Reciproc¬
ity Information Will create fur-

hei''headlines of the

ticeable

that ho
newly elected
Congressman lor Senator (has pub¬
licly expressed his views on the
subject.
Therefore, none of the
public pronouncements which
have yet (been made by opposition
Congressmen or Senators are any

the

But ri£ these

preted'

indicatin g

reaction

against

kind.

same

headlines

inter¬

are

/ political
Administra¬
a

the

tion's program for the lowering of
rade barriers at home and abroad,

hey will have proven very miseading. As a rule, consumers and
other' groups who favor the trade
agreements program do not ap¬
pear at these hearings to testify
with regard to individual prod¬
But their active

ucts.

he 1 legislation

support of

the

past' i s a
*ood indication that they would
De'heard from if any effort were
made to repeal it."

'' ''

,V\''V,'

in favor of the trade agreements

in the past. And,, al¬
though a majority of the Repub¬
licans in Congress voted against
program

Senator

Butler

Objections

the extension of the Trade Agree¬
ments Act in 1945, this was before

'1*

t ?,

■]':>.

:1';

A.,,

doing : substantial injury to
domestic agriculture and industry.
conduct

date,

however,

accord

the

with

has

this

been

tariffs.. On

supposedly
have

been

other

foreign

"pool

other

hand,

Explains His

Under-Secretary
Clayton

continue with this program, when
the' American people have
just

direction.

tween

businesses or organizations which
wish to appear at those hearings
have been • required 1 to submit
briefs within the past few weeks.
When : t h e s e
briefs
"protest"

tariff

fact

that

the Committee for Re¬

ciprocity Information is holding
public hearings on the tariff negotiations in January and that

against

reduction

(The list of, products
reductions may

.which

made

tariff,
they necessarily do so in vigorous
language which can often bb read
as opposition to the entire1 trade

during these negotiations

agreements program, though this
is very often far from the truth.

ens of items in which the
people
of my state are vitally interested.

•«

"Since

of those submit¬
ting briefs also sent them to the
many

newspapers, a spurious impression
of

uprising against the
created.'

The

program

thing has
major
trade ^agreement, negotiations in
the
past.
Government officials
who have been receiving the briefs
say that those which oppose tariff
reductions do so with no greater
vigor than in the past; that there

happened

is
in

same

before

all

interest shown than usual

obtaining positive export bene¬

fits

from

the

negotiations; and
that the volume of briefs is no
larger than those which were sub¬

i covers

56/pages, and;

appears stov include
at least three-fourths of our total

import trade* On'the list

are doz¬

Among them are cattle, hogs, and
meat; cheese, butter, and other
dairy products; wheat, and other
grains; wool; and a long list of
-

fruits

and

mendous

vegetables.

number

reductions of 40

50%

tre¬

tariff

have al¬

ready been made in the past 12
Apparently you propose to
further reduce'the rates even on
years.

these

items* by! some

artiount,

to 50% of what'pro¬

tection is left.!'

•Reductions
the' Trade
have

substantial

/;■

>\y

already;made

Agreements

reduced ^ the

asked,

Butler's

opinion

40%.: In other

gram

date

commented

the

writer:

/ "One story which received
usual

un¬

attention by

the press was
the statement against trade agree¬
ments program made by the ag¬
ricultural

number
,

was

commissioners

of sourthern states.

This

widely interpreted as an in¬
of a revolutionary shift

dication
from

the

traditional

low

tariff

protection,

was

matter, that's all.
trade -agreement

announcement

/of

that

pro¬

system

1930.

"Con¬

The

agreements

our

are

>*, *

the

•

■<

belief

that

when such

the

ef¬

time

come

can

prop¬
it is in

■

Branch of the Government.
is entirely in

three years; and there are not the
votes in House or Senate to" can¬
cel that Act.

"The trade agreements program

our

is tied in with the Atlantic Char¬

an. effort

bring

economy and our Government

back tq a peacetime - basis
quickly as possible.
;7,

ter, Len£ Lease, Bretton Woods,
the British

This

keeping with the
policies which I have consistently

followed,

loan, etc.; it's in the

The

proclamation., terminates

air and in the minds of the people,

Government

k^qreov^r,;$we take

powfU> under some
statutes, immediately upon its
issuance. ./It. terrp^ates Govern¬

restrictive

imports,,we'll be making

yjew of

,that(^fe -won't; get

repaid;ton

tAC-Joans

ment powers

we have* made, abroad.
If jjwe do not want repayment, we
should discontinue making such

foreign .loans.''

end

unde^^ppae 33 pthers

later
of

date, generally at the
six monthk from the date

of the proclamation.

The December 21 NAM; news
repprts that the World Bank has
abandoned plans to -float all se¬

as a

result of provisions made

originally passed.

stances

belatedly investigating the

sibilities of

flotation

Paris,

pos¬

truly international

New

Ottawa

the

York, London,

Reasons cited by NAM are rising

the

The NAM

proclamation

refused

opinion

the

per¬

are

institution

never

has

only
this

plan,
never

World

its

original

still' is

the

t'he

win-j

Bechtel,

for the
winners/and Buckley and
Padgett/for the losers, were also"

well

over

their

season's

average.

Winners of the Special
Holiday
Sweepstakes, bowled Dec: 16, Were
Fred

Co.

Alliston,. Wm. C.' Roney &
pins over average) / J.

tion

that / the

not; terminate

terminates

of hostilities.

The

war

itself.

merely./.the period
With respect to the

Michigan^ its
will donate : individual
trophies to <each member of the
winning team at the conclusion of
the
regular season.
This is in
addition

to/the "Michigan

Inves¬

tor"

trophy, to be awarded as a
prize.
Also, Norman
D.
Humphries,»: Keystone Custodian
Funds,! Detroit, will donate an in¬
dividual trophy to the most im¬
team

bowler

proved

Judging from the

the

way

season.

the teams

already battling it looks like

are

it will be

hot

to the finish.

race

right down

:/'!i;rEVv

With Brailsford & Co.

;

(Special to The Financial Chronicle)
:

CHICAGO, i

ILL.

Leslie

Southcomb has become connected
with Brailsford &

Salle

Co., 208 South

Street, meiubprs of the
/ /

With Harris, Upham & Co*
(Special to The Financial Chronicle)

CHICAGO,
ham

Co.,

ILL.. Harris,
135

South

—

Up¬
Salle

Street, members of the New York

genc^'and jthe stdte of war./I shall

and.oth'fer-Stdck

of
,

recommendations

Congress in the

near

future.

the

\
•

'•'-/••

:
l

of Detroit and

termination of the National Emer-

makeu

••

sponsors,:

Chicago Stock Exchange.

of emergency declared
President Roosevelt on/Sept.

Jackson

Curtis (102 pins), and Edwin
Ackerly, Chas. A. Parcells & Co.
(87 pins). Prizes were .$12,, $11
and $10,
respectively. •. ,/./•
"
Ray * P. Bernardi, President of
the league, > has announced that
The; Securities Traders' Associa-

will

be "noted

(105

Murphy, Paine Webber,

securities

matter

the

average of 185, was high man for
both teams. Bernardi and

Congress for addi¬

terminating the state of

"Ttife* -Britisk * Government
oh

out

came

In these

today's action have the effect of

has been'approached by the
Bank

Gov¬

team

8, 1939 and May 27, 1941. Nor does

had

plan.

the

desirable in peace¬

does

the

; Various

plan to float all its securities here,
and

should

vv-i ■>:"

the states

spokesman of the Bank said that
the

give

recommendations

proclamation

market!

foregoing,

reconversion,

"It

Asked by this correspondent for
comment

in¬

instances,

states that Britain

point blank to

few

affected

period of

inflationary disadvan¬

news

statutes

time, or for the remainder of the

investor resistance in the United
States and

ernment certain powers which in

Amsterdam.

and

This follows

the Congress, when the legislation

curities in the United States and

from '

agreements powers for

Bowling League

C/
Roney & Co., as well as a request
Paine, Webber for a re¬
match, (Clarence Horn, with an

ner, 2266 to 2207, and has already
received a challenge from W.

has

declaration

pt., tlie League were ac¬
howpver1, wjth, a match game

latter

emergency statutes c6ase
upon the issuance
proclamation.
It is
my

this

Y. — 6
rates iri

^/Curtis/League leaders, and a
picked team composed of Clarence
Horn, First of Michigan Corp./
Don Miller, McDonald, Moore 8i
Co.; Ray P. Bernard/ Cray, McFawn & Co.; Charlie
Bechtel, H.
V. Sattley & Co.; and Ross Suth¬
erland, Cray, McFawn & Co. The

31,

Dec.

be effective

lower

'•

SuspepdpdlJ untg' Dec.

was

number

Con¬

intervention of the Christmas hol¬
idays/regularly scheduled bowl¬
ing in the Brokers' League was

•

law,

Education, Inc.,

members

erly be made, and that
next Congress can¬
the public interest; to make it.
anything
about
them; Most of
4he,; powers affected by
Thirdly,: Congress last Summer by the
proclamatipn need no longer
an overwhelming vote extended
be
exercised by; the Executive
the trade
not

but

tartff. System, is
planned. .'/.V■ ^/"v!"/'/. /. '/
Of.

today;

fect and the

pro^

second sweeping downward

revision

War and

The reciprocal
imbedded in

Noon

Under

Washington since 1934.-' Secondly,

to believe

the; news
me

>■

•

statement

tional legislation.

far-reaching

posed treaties leads

1946.

everything that has' been done in
numerous

o'clock

$7 billion of such securities here.

our

the Tariff;Act of

Program

constituted

substantial revision of

his

be made to the

w6r<ta,:your

has

following

Rent

DETROIT, MICH.—Due

released by the President
along
with the proclamation: ■. /
1 1
I have
today issued a proclama¬

gress: will talk and talk about this

mit such marketing in its

The

agreements,
Rep. Fred L. Crawford (R.-Mich.)

has

States' Position

;

Watts—Founda¬

for ' 250;
.

Y.-—

Match Scores

trade

such reduction's have' averaged 30

Misinterpretation of the Southern

Sen¬

for

N.
"•'■'■/

■

between Paine, Webber, .Jackson"

tion
terminating the period
to/what the next Con¬ hostilities of World War
II., as

will do

gress

appropos

statement,

Believe
Orval

Detroit

tive,

Truman's Statement

negotiations

the

and

•/''

You

copies

Rep. Crawford Says Butler
: Reflects "Talk and Talk" ;/■
When

York

Irvington-on-Hudson, N.

our

By''the President: ' '
JAMEJS F. BYRNES,
'
The Secretary of State.
}ib
'
J *
I IV

HUGH BUTLER,'U.S.S. "

ator

New

;

trol?—V.

Forty-Six, and of the inde- /
pendence of the United States
of America the one
hundred !
>and seventy-first.
• *
.
i-

with/the United Kingdom alone.

before

pro¬

HARRY S. TRUMAN.

approximately1' ha] f 7 tof our prod
ducers benefited byr tariffs, and

mitted

hostilities

December in the year of

tages to this country of floating

Lord, Nineteen Hundred

under

protection

Avenue,
paper.

at the City of Wash- :
ington this thirty-first day of

cases,

cessation

Keep the
Hayries — Citi¬

Conference on International
Economic Union, 370 Lexington

(// Done

on any changes
plans with respect, to this

in its present form is a lame-duck
policy. The * attempt»toi, use.the
authority of the Trade Agree¬
ments * Act,
previously wrested
from a, Democratic Congress, to
destroy our system of tariff pro¬
tection, seems to. me a direct af¬
front to
the popular will ex¬
pressed last month.

the

Can

zens

S. Tru¬
the; United

—

Industry
Eldridge

quantity.--

im¬

awaited with interest;
Ydurs very

Peace

'/.»."

part to proceed with this program,
in defiance of the wishes of the

How *

ica to be affixed.

in the interests1 of the na¬
tional welfare will be difficult at
best.
A determination on

in your

sources

tK.ilf '

tion for Economic

■
following letter was written possible.
this subject to Under-Secretary
Your comments

are the
simple and inevitable result of the

Con¬

almost

Trust Company/
City. Current issue also
study of Mineral Rer
of the United States.

unto set my hand and
caused the
seal pf the United States
of Amer¬

gress

people, will make it

York

(World-, i War II, effective 12
o'clock noon, Dec.
31, 1946. >T.
i;; In witness whereof, I have here¬

re¬

Adminis¬

the Republican

and

quarterly publication of

New

contains

9)'

page

America, do hereby

claim

Cooperation be¬

Democratic

the

tration

the

clare, that hostilities have termi-

man,
President
States of

verse

"Index"

natedi/- ;/;/.•(• \p
Now; therefore, I, Harry

emphatically in the

Chemical Industry, The—In the

long

It is for these reasons that, I
protest your apparent decision to

over

(Continued from

The

bipartisan support of our foreign
of State William L. Clayton on
policy had reached its present
Dec; 19 by Senator Hugh Butler
Stage of development, 7/
'//Furthermore, it is quite likely (Republican of Nebraska):—.
that fma'ny Republicans
voted Hon. William L. 'Clhyton
against thd program in the confi¬ Assistant Secretary of State
dent knowledge that they would State Department
^
/ h/. t/ ?
be in a minority!: With the re¬ Washington, D.C.
\
| <■ 1
sponsibility Of ;a^majority, their Dear'Mr. Clayton:
actions may be very different. In
Reference is made to the recent
any event, the votes of Republi¬ announcement of intention to ne¬
cans who have opposed the pro¬
gotiate Trade Agreements with 18
gram in the past would not be foreign countries.' I am '
writing
sufficient to pass a repealer or to
urge that these negotiations be
y crippling amendment unless they
temporarilyk suspended until the
were backed by all of the newly
new Congress shall have
an op¬
elected Republicans. /
'
portunity to write a new foreign
;
'/ "The papers have carried many trade policy. This announcement
articles 'indicating opposition by
apparently indicates an intention
:
one industry or another to reduc¬
to
continue
with
the
present
tions in tour tariffs on particular tariff-reduction
program^ despite
commodities.. Naturally, theSe the repudiation of this Adminis¬
many articles are ; likely
to be tration by the voters.. Such an in¬
interpreted is. a spontaneous up¬ tention is amazing to me.' -4
rising ' against 'reciprocal
trade
The Trade: Agreements Program

Agreements. Actually, they

be spread

your

and expenditures there¬

;

spoken

time later."-

some

inflationary effects,

Truman Proclaims
Hostilities' End

blocked

•

has

O W

and
There is

this trend.

reverse

Man's

con¬

New York

nothing tq indicate that renewed
negotiation on the present basis
will

the

time,

buying,"

for

period of

countries

devices.

he
the-Bank

from will

concessions

nullified

exchanges,
various

the

valuable

from

Amsterdam,"

studying the possibilities of

flotations

contrary, it appears that
the program is
being used as a
cloak in an
attempt to commit
this country to a;
policy of very

secured

Business

the spokesman said that the
Bank

pretended' goal.

the

low

tinued, "although

program

not

occa¬

securities in the visible future
in

The

added,

the NAM mis¬

takenly reports. Nor has the Bank
ever
thought it possible to sell its

out

Sena¬

Knutson, Senator Butler,/pf,
Congressman Gearhart. It i's hO-

Agreements

been

are
any more representative of
southern opinion today than they
were
in the ehrly days of the

tor

Trade

sions from foreign nations,; with¬

in other word's,, in

the program by

trade

has had*

refuse,

past but also in
opposition to the legislation itself.

the /trade
;,

the

London,"

Paris

ductions

the

has, not always been

vigorous

same

opposed

My views are in accord with
commis-' the, ostensible program of the
no

was

program
for
many
and have appeared not only
opposition to specific tariff re¬

program has been made since the
election by a Congressman or Sen¬
ator who

The

have

"and therefore
to

sion

Act, that our
foreign trade should be expanded
by securing advantageous conces¬

few of the facts!

thing.

South.

Danger

There

opposed

the

CHRONICLE

added

i staff.

Miles/ R.

Exchanges, have
DuKet

/-.Vv,. :;/•;

their
„

Anglo-Brazilian Commercial Understanding

Finds Decline in

National Income Growth
(Continued from page 10)
ing public utilities and residentia
construction; about three-tenths to
public utilities; about one-fifth to

capita almost tripled: Com
parisons with data for the years
preceding the Civil War suggest
that these rates of growth for na
tional
income and income
per

capita
were

(but not for population)
distinctly higher than those
,

1800-60.

for

;

Kuznets says
"indicates large growth in product
per capita in tne country's capacity
The

Dr.

record,

produce,: even when measured
member of its vastly greater
population."
This,
he . adds
"means a substantial increase in
to

per

welfare

economic

capita."

power

per

residential construction, and about

one-seventh

The additions to
equipment by
private industry, public utilities
and residential construction

public auspices.

showed a decline from the first 20
years of the
Of the total

future

in the past,"

growth

simple projection into the
no
more
constitute, Dr

Kuznets declares,

"a proof of the

theory of secular stagnation than
the observation and extrapolation
of constant or accelerating rates

;

•

a ^dis¬

constitute

would

growth

proof."

""v
Growth
;■ V

Factdrs Contributing to

Of National Income

Of the total increase of

lion

$59 bil¬

in 1929

national income,

prices, from 1875 to 1925, $21 bil¬
lion can be ascribed to the in¬
crease in the number of gainfully

occupied and $38 billion to the in¬
in

crease

income

per

gainfully

occupied person.
"--.'.■v.-:"
Thus, well over 60% of the in¬
crease in national income in that

period can be associated with the
in income per gainfully

increase

occupied
person.
Income
per
gainfully occupied person ' rose
$822 in 1929 prices. Of this, $486,
or 59%,
was due to the rise of

gainfully occupied
person within the various indus¬
tries; $336, or 41%, was due to

income

per

of workers from industries
to
industries j with

shifts

lower

with

higher income per

gainfully occu-

person.

Flow of Goods Into Consumption
and Into Capital Formation
Throughout the period the

flow

goods to consumers was a con¬
sistently large component of na¬
tional income: in no decade was it
less
than 80 %.
The "predomi¬
nance

of ultimate

channel

the

into

teristic

consumption as
which current

.
.
is a charac¬
standing in this
country," Dr. Kuznets reports.
While the trend in the share of
athe flow of goods to consumers
was
upward and in the share of
capital formation downward,
"neither is pronounced unless we
include
the
last, two
decades,
which were affected by the 1929-

product flows
of

long

depression and its aftermath."
composition of the flow of

period to the last 20.
added under public

auspices, on the contrary, con¬
siderably less than one-half was
added during the first 40 years
and 57% during the last 20.

in the

growth of national income
as
explained in the report, does
not in itself lead to the conclusion
that the economy is in a long-run
trend
toward
stagnation.
"The
mere observation of retardation in
rate

under

Retardation in Rate of Growth

The evidence of a decline

and its

activities

net construction and

total 60 years', accumu¬

Of the
lation

reproducible

durable

wealth, more than one-third was
added during the: first 20 years
and much less than one-third dur¬
ing the last 20.

This fact, accord¬

ing to the report, suggests a re¬
tardation in the rate of growth of

former, the main long-term trend
is the rise in the share of serv¬
ices

not

modities.

embodied in new com¬
There was also - some

tendency

toward

a /

rise

in the

share of consumer durable
commodities.
The shares of per¬

the

ishable and of semidUrable com¬
modities declined."
The long-run

shifts in the com¬

position of net capital formation
were more pronounced.
There is
evidence, the report shows, of a
trend away from construction and
inventory

accumulation and to¬

ward producer durable equipment
and
additions to claims against

foreign countries.
The total increase

during the 80

in the value of durable re¬
producible wealth; that is, the net
stock of construction and equip¬
ment, was distributed about onethird to private industry, exclud¬
years

Food Council.
His Majesty's Government have
been similarly concerned at the

suspension of the export of cer¬
raw
materials produced in
Brazil which are essential to in¬

tain

dustry in, the United Kingdom, for
example, hides and skins, timber
and hardwood.•

faction of the

undertaking of the
Foreign Af¬

Brazilian Minister for
fairs that everything
be done to meet the

possible will
wishes of His

Majesty's Government both as re¬

welcome

They
that

his

technical

British

'•r.! The Brazilian Minister for For¬

eign Affairs
intention

informed of the
Gov¬
Kingdom to

was

His ^Majesty's

ernment in the United

Aviation
Brazil

Converitiqh" b e't wee n

and

their

United

the

Kingdom:

signature of the proj ected Con¬
vention, the Brazilian authorities
should relax, in favor of British
&c., and' of his statement that he
had requested/ the? President of South American Airways, the reg¬
Brazil
to
prolong ■' the existing ulation which at present prevents
Anglo-Brazilian Agreements con¬ that organization from adding im¬
cerning food products for at least mediately a fourth weekly serv¬
ice to their existing schedule of
another year.
1
three

(6) British-owned Enterprises
in Brazil.

services?

depressions of * the l#30's, are

each

tatives

Brazilian

the

;

stitution
he way

Murphy to Be
Byrnes' Deputy
Announcement
Dec.

the

was

•

appointment

on
•

deputy for the preparation of the

treaty for Germany, Wash¬
ington advices to the New York
"Times" stated. The "Times" fur¬

peace

•

such

;{•

at the
session of the deputies of the Big
Four, who will convene in London
"Mr. Murphy will serve

juridical

The

future

be main¬

legislation

re¬

garding pretroleum. ; He gave an
assurance
that President Dutra
neartily desires the co-operation
of foreign enterprise in Brazil and
wishes to assure to it all neces¬

guarantees > consistent
he new Constitution. - *•.•:*

sary

interest

our

countries, which were held ;at
the Foreign Office from the 17th-

20th

September;

of Brazil

between

1946,

of the Government

and

United

the

Kingdom,

and

confirm the record of the conclu¬

sions set out in the annex thereto.
:

Lavail,

"■**

JOAO NEVES da FONTOURA.

require foreign
operating between

authorities to

ian

1MB Executive Council

aircraft

civil

points in Brazil to carry official

i
Majesty's Government have

Brazilian observers.

His

welcomed

• *

willingness

the

•

ex¬

midwinter meeting

The

can

Institute

tional

of Banking,

.^section -V of

City on Jan. 29-31, it is announced
by George J.
Greenwood; Jr.,
President of the Institute,

Bank

land, Oregon.

■.

also

time

(10) British Purchases of Certain
Commodities from Brazil.
t

The Brazilian Minister for For¬

held

Hotel in New York

the Astor

ment.

■

educa¬

the American

Bankers Association, will be

pressed by the Brazilian; Minister
for Foreign Affairs to take up
these matters with his Govern¬
■

oflhe

Executive Council- of the Ameri¬

who'is

Assistant

Manager .of The
California N., A., Port¬

held

been

This .is the first

midwinter meeting

the

of which Thad-

York Chapter AIB
deus C.

has

York./ New

New

Cox, Assistant Vice-Presi¬

coffee,

brazil huts and

oranges,

expressing - the hope that

meat,

negotiations would begin shortly
for

new

recent

the

consideration

Argentina

and

agree¬

the United5 King¬

ment between
dom

meat

over

prices.
\* His"

that

Excellency

was4 informed

the' future "British purchase

program

in. respect of: these par¬
was

under

constant review, and that,

subject

commodities

ticular

to such relevant

considerations as

price, stock on hand;
of

availability

shipping, &c., Brazilian offers

examined.

'■-

(11) Claims.

the meet¬

ing of the Executive/Council'as
a whole, Council committees will
meet

These coih-

Jan. 27-28.

mittees

Budget; Chapter Ad¬

are:

Nominating;
Transportation.

meeting

midwinter

The

and

Program,

ry;

- >

will

bring together national leaders -of
the Institute, which is one of the
largest institutions for adult edu¬
cation in the world. Besides Presi¬
dent Greenwood, national officers
and

members

the ..Executive

Council who will be in attendance
at the midwinter

meeting include:

Garnett A. Carter, The Fulton Na¬
tional

•

Bank, Atlanta, Ga.; Vice-

President; Dr. William A. Irwin,

Educational

rector;

Director;

Floyd W. Larson,

tarp; Robert

ThefBrazilian, Minister lot

For¬

Affairs was -informed

that

eign

winter meeting. Prior to

Leroy

sympathetically Lewis, Associate Educational Di¬

would always, be

is President,

AnglprBrazilian meat ministration; Educational Adviso¬

which .would dtake into

contract

and Trust Company,

Secre-

C. • Rutherford, As¬

sistant Secretary; David T.

immediate

Scott,

past President of the

The Con¬ Bis Majesty's Government attach Institute, The First National Bank
importance to the settlement ■ of of Boston,- rMass.; Edward 5P-

places no obstacles in
of participation by for¬

Brazilian Foreign
Minister added that, in his opin¬
ntities.

tained

made

accord¬

ion, this principle will

Secretary of State Byrnes of Rob¬
ert D. Murphy to serve as his

ther'said:

capital

eign

Robt. D.

nationality or .to
entities organized and

Brazil
with local law.

ance

Brazil¬

Brazilian

established

gainfully occupied person should
also have declined.

commercial

two

will be host chapter to the mid¬

adequate
These* < proposals
have
been
efficiency brought by His Majesty's Govern¬
capital, but it cannot be as¬ ment to the attention of the Brit¬
sumed that this factor would off¬
ish companies concerned, namely:
set the retardation in the .rate of
CearaTramway
Light
and
relative additions to the stock, Dr.
Power Company,
Kuznets points out. All that can
Para
Electric
Tramway
and
be said of the data as they stand,
Light Company,
he concludes, is that "the total
Manaos
Tramways and ;
stock of capital in the country
Company,
•
available for the production proc¬
Leopoldina Railway Company.
ess grew at a high rate during the
60 years and the rate
declined
(7) -The Position of Foreign
sharply from the early to the later
f v
Enterprise in Brazil.
part of the period."
•
-•
The Brazilian Foreign Minister
This conclusion, together with stated that the new Constitution
the decline in the rate of growth offers full guarantees to foreign
of the labor supply as represented capital, the entry of which into
3y the gainfully occupied, he says, Brazil is welcomed. The develop¬
lelp to explain the retardation in ment of mineral and petroleum re¬
the rate of .growth of national in¬ sources in Brazil is regulated , by
come.
Furthermore, he adds, the Government V concessions
which
reduction in the working hours of can
be
granted to1 individuals

ply at least suggest why the rate
of increase in national income per

and

Government / regarding». .the, pur¬
and
Brazil; of cotton,
authorities
con¬ chase/ from

The data do not take

juridical

acknowl¬

receipt of your Excel¬
lency's note of the 21st Septem¬
ber, relating to the discussions
'concerning matters of economic

the-abolition of the regula¬

company.;

account of the improved

labor and

honor

the

edge

eign Affairs enquired what were
the
intentions of His Majesty's

in the rate of

-«

dent of the Central Hanover Bank

should be composed of represen¬

cerned.

tbO; greater, retardation
growth of reprodu¬
cible capital than in the labor sup¬

have

Brazil:

week

hope that the Brazil¬
ian Minister for'Foreign Affairs
would' lend-his-influence to se¬
tion which empowers the

excluded.

Excellency,

and Of their

The-Brazilian Minister for For-

London, 21st September, 1946.

•.

eign Affairs stated that the Bra¬
reproducible wealth as Wei
zil ian v authorities,
without
ex¬
as
for ' every
category • distin¬ cluding the possibility of organ¬
guished, the stock increased at a
izing mixed Anglo-Brazilian Com¬
sharply declining rate; the rate panies to take over and operate
for
private industry, excluding these the under-mentioned British
public
utilities and residential, interests, are disposed preferably
construction, declined from 166% to lend sterling for the purchase
in the first 20 years to 8% in the
of material for their rehabilita¬
last 20.
The declines in the per¬
tion. He proposed that mixed com¬
centage
rate
of
growth > are missions be appointed in Brazil as
equally drastic in other categories soon as
possible to study the needs
and even in the tax exempt group
of each of these companies in the
the large addition in the last 20
way of new equipment, &c., and
years, 115%, is smaller than in the the most effective way in which
first 20, 260%.
The decline in the to raise the necessary new capi
percentage rate of accumulation is tal.
These
mixed
commissions

vere

Mr. Ernest Bev

that^ pending the representatives of the Government

desire

able

if the last 20 years,
which include the unusually se¬

negotiate * a ; Civil

delegation \ to

October

to Brazil early in

send

'yJ-ji:-A-'A- Brazilian Embassy, '.
:

CiviUAviation.

(9)

'.t;

Senhor Joao Neves da Fontoura to

Your

cure

even

other

and

participation in Brazilian enter¬
prise is no less welcome today
than in the past;. ;*
/

)

assuranoe

Kuznets finds

shown

his return to Brazil.

Foreign Office, • '• ;•%///y/./ /•>/■
20th September, 1946.
",v

ish-owned Sao Paulo Railway.

gards rice, maize, beans and as
regards hides >. and skins, timber,

Measuring this retardation, Dr
that for total dun-

Majesty's Government have
therefore taken note with satis¬
His

"The

goods to consumers and of net
capital formation also shifted,"
Dr.
Kuznets
finds.
"In
the

cated to those areas by the Inter¬

wealth. |

durable reproducible

shortages.

national Emergency

Wealth

Durable Reproducible

rate of

the

Certain areas.in the recent decision of his Govern¬
Asia, for example, are in urgent ment to exercise their contrac¬
need of the Brazilian rice alio - tual right to take over the Brit
food

sonal interest in their settlement

given by the Brazilian Minister
Foreign Affairs
concerning
by for

(Continued from page 16)
world which /are threatened
■

per

Thursday, January 2, 1947

FINANCIAL CHRONICLE

THE COMMERCIAL &

with
:

,j i

certain

claims

outstanding

British

companies

against
official

Brazilian
and/or

by Boyer,

persons

commercial

and
en-

.The Brazilian Minister for For¬

eign Affairs
settlement

Bank

Chamberlain,

Company

Orleans, La.;
Union

Rochester,

Y.; W. Howard Martie, Farmers

DepositNational

Bank,

Herbert

Pitts¬

burgh, / Pa.;

claims

lay

hofer, Fort Wayne National Bank,

these

sphere in which

Fort Wayne,

National

Widen-

th]e

courts,

National

in New

explained, that

within the competence of the Bra¬
zilian

Howard
Trust
N.

tities. t'v

The

Commerce

Ind.; J. Kaye Ewart,

Bank

Tacoma, Wash.; H.

Washington,

Waldo Graff,

Government wel¬ the Brazilian Government has no
comed this declaration. They have power to intervene. He promised Trinity State Bank, Fort Worth,
agreed that, pending the develop¬ however, that he would use his Texas; J. Vincent O'Neill, The Na¬
ment of adequate Brazilian indi¬
tional '/City Bank of New;York;
personal good offices with a view
His Majesty's

genous

petroleum,

every

effort

Hartwell F. Taylor, The Bank of
to expediting settlements.
It was agreed that certain of V/rginia, Richmond, Va.; Alton P.
requirements as Brazil
consideration of the
may desire to receive from British
these claims might be susceptible Barr, Security Savings Bank, Bir¬
Foreign Ministers when the latter sources, on the understanding that of settlement out of court, that mingham, Ala.; Walter D. Behnke,
it is the intention of 'i Brazil to
group meets in Moscow on March
His Majesty's Embassy at Rio de Old Kent Bank, Grand Rapids,
10.
■
j- draw a fair share of her petroleum
"Mr. Murphy,
requirements from such sources. Janerio should discuss each case Mich.; Clarence W. Brown, Amer¬
veteran career
further with the Brazilian cMiil- ican Trust Company, Sacramento,
diplomat, is thoroughly familiar
(8) Sao Paulo Railway.
.
j;
with the German question through
istry for Foreign Affairs, and that Cal.; Christian Ries, Federal Re¬
His Majesty's Government have
his long service as United States
serve Bank of Minneapolis.
j
taken note /of the explanations the Minister would take a pernolitical adviser in Berlin."
on

Jan. 14 in

effort to work out

drafts of the proposed

treaty for
Council of

should be made to cover
roleum

such pe-.

-Volume

Number 4556

165!

THE

COMMERCIAL

FINANCIAL CHRONICLE
&

Philadelphia;

Permissive
!/•'

;favor

.corporations,

'elected

v.?

the

Congress will

newly

pass

concludes

with

this

'"The Exchange's

-t

;

observation,;

own

;

stocte^^

question), saying: 4
if the tax non-member corporations 1 trans¬
/ i authorities find present the pur¬ acting a similar business. Further¬
pose to, avoid surtax, the tax is more, in the event of death, <mem%
.

imposed even though the accumu¬
lation of surplus is reasonable in
the light of the business needs of

ber

corporation

stock/would

business to the floor of the

the

follpwing

■

who,

unlike.

Mc-

Pittsburgh;

seats-.

& Igoe of East Orange,
John J. O'Brien of John J.
,O'Brien & Co. of Chicago;
N. J.;

O'Connell &/Go;
Boston; Julius W. Reinbojdt,
Jr., of Reinholdt &

Co. of San Fran¬

Philip

Dulles & Co. of

Lee

Wurts,

Philadelphia.

One) that there are few, if any,
tax advantages to the corporate
of Johnson
•J form of organization." .
Wilson
of
-

The

third point

is that the

na-

Wood;

Co.;.John Rosenthal of Lddenburg, Thalmann & Co.; Louis W.

.to that of the corporation. Says the

}

James W.
Josephthal /&
Co.;
Charles E. Ames of Kean, Taylor

/ture of the partnership is superior

booklet, "Careful supervision of
/ :member firms by the Exchange,
.'plus the fact that partnerships im-

Noel. of

Vilas

Laidlaw! ,&/ Co.;. Homer!
Cyrus J. Lawrence. ..&

Sons; Gerald M.^ivihgston; Hans,
ihigh standards ,of personnel A.
Widenmann of! C> M. Loeb,
/ and
conduct, have respited, in a Rhoades &
Co.; Floyd Keeler of
/ 'superb solvency record, superior Orvis
Bros.; Ralph E. Samuel of
/ ,r .to -that of corporate' institutions,
Ralph E. Samuel & Co.; Walter
t
;
The interests of-officers in
Maynard of Shearson, Hammill &
.a corporation
qannot b'e substitutr
Co.; Charles C. Lawrence of Stilli ed for the/interests of
partners
man, Maynard '&* Co.; 'Richard
"Whose entire financial worth is
Teichgraeber /of T h o m s o n ; &
•involved." •'
-*
Z" » ;
* 3
McKinnon; John* C. /Maxwell of
"/ The 'fourth
point; stresses the Tucker, Anthony & Co.; Dourtpossibility of unsuitable corporate landt D. Barnes of H. N.
Whitney,
paembers. '.'Although the proposed Goadby & Co.
V regulations
concerning incorporat 'pose

tion

appear; to

offer

against the admittance oL unsuit¬
able types of .corporations," the
booklet points out, /'this cannot

j>jbe assured. Once the first.step is
taken, further concessions

cilitated/

so "

Out-of town

safeguards

are

fa¬

Herbert R. Bloch of Benjamin
Bartlett & Co. of
Cincinnati;
Marqp F. Hellman of! J. Barth &

/
Xa

■

Co. of San
leln

PARTNERSHIP BASIS

;, //
Assumed
- /.Distribution

Beer: &

Co.

New

Am't

Retained

as an

k.\{ .Retained
Officer from Salary
After'Deducting
" and Dividends
.

■

Partner

.$ 25,000*
,

;

'r-Jt

Federal r;

Or¬

after Deducting

Am't Retained by
Corporation after

34,311

•

•.

/*.

22,430

(col. 4)

were

ultimately distributed,

/';■,,■>

notes:

;

46,926

additional

corporate

taxes have

tax would be

in-

Dividend

^earnings, after, deducting
tax.es

been assumed

65%'-of thd

solution.' The
splution must be reached by labor
and management
working togeth¬
er, in the realization that produc¬
tion once lost cannot
satisfy hu¬

/ particular

envelopes,

pay

owners.

of three major,
categor¬

are

they stem

adequate

(1)

from

interna¬

plant

capacities, which

which .can be corrected
finding substitute ma¬

sources,

only

terials

problems
be cured

None of these
of the type that can

sources.
are

rapidly by

exercise of

the further

war powers.

Generally

their solution should be achieved
either by

been filled, with,
important exception of hous/
ing. Shortages which exist are
to

fill

will be corrected in the
long run
demand holds up, and
(3)
from a
shortage of natural re¬

war-born

shortages have

and

wants,

return profits to. the

if the

meth¬

the

industry

nent government

or by
agencies.

perma¬

Paine, \Vebber Adds Five

industries
'

individuals, 1 but these

are

(Special

taken ;care!

pro¬

The

Financial

Chronicle)

BOSTON, MASS.—Paine, Web¬
ber, Jackson & Curtis, .24 Federal
Street, members of the New York

FpH Employment—A»Reality
•

Stock Exchange and other
leading

Essentially

exchanges,

has

been

full

achieved.

employment
The

country
today has more people employed
than ever before in its peacetime
history. Only about two million
ticular control
hsS '' ^onsistontly( people are currently reported as
been placed upon those who felt I unemployed, and, despite !gener
that : the control/was

staff

have

Wilson

added

Brunei,

their

James

Cuddy, Robert H. Ford, James D.
Murphy, and Edward L. Supple.

■m.Lee

Lee

Todd,

member

the

necessary/j ally accepted V-J/Day; forecasts of Boston Stock
Exchange, died at
Unless it could be-clearly-shown! ^ tpi 8 miHiop. I unemployed by.
his home at the
age of 72.
Mr.
that the control was
necessary, it Christmas, 1945, m ho time in the
Todd, who was born in Lexing¬
Was dropped. !// tn/
1 past year did theTigure rise above:
,

three million eveft; with the. rapid

demobilization
forces.

To.

represents

^'fthe

large

armed

have

ones

been

to be

problems,

sure.

But

extent

this

frictiortal

ton,

and

came

Massachusetts

Cabot,

Boston,

50 years ago.

Mass.

than

!///-• /•///^/;;•'■ /// ; ■!:

With Mercier, McDowell
(Special

to. The Financial

/!DETROIT,

Chronicle)

MICH.—George A.!

for the
(

they have, already been1

choices of free

men.

industries, it has climbed steadily ! months. iTheir effects
to

Ky.,

I as a young man and became asso¬
ciated with the firm of Moors
&

ably will always exist in a free
McDowell, Jr. has been added to
enterprise system where workers, ;the staff of
Mercier, McDowell &
and .' jobs
are
matched
by /the. Dolphyn, Buhl Building, members

of the Detroit Stock

///

are

still be-

Exchange.

Milton J. Beirne Dead

/ Milton

Branch
and

Stock

Beirne, partner in
Co/ of Richmond, Va.

member

of the

New York

Exchange, died

Dec. 22.

With Stone & Webster Sec.

new
peacetime highs, month
(Special to The Financial Chronicle)
felt in diminishing degree. ;
after month. The phenomenal in¬
;
The American economy is a
CHICAGO, ILL. -riWalter B.
creases the output of
building ma¬ highly complex and interrelated
terials so vital to the
Huey, Jr. is now with-Stone •&
building of* mechanism. The drying
up of sup¬
homes
for : veterans
has
never
ply in one commodity for any Webster Securities Corp., 33 South
been matched in American his¬
Clark Street.
/
tcause sets off a chain reaction that
tory, As output of basic materials
| is felt throughout the rest of the!
has,

jing

approached

piper-lines, of

capacity

raw

levels,

materials

goods-ih-process. have been

and
rap-,

net

the. officer's salary ;• and Federal income
corporate earnings.
•/■//•'-//''"■v/
■■/■ •

serious

been

distributions have

most

exercise

the

computed at/L946 rates Qmtjie
b^sis of earnings in excess of $50,000.00.
/!
/
!
..-The sum of $12,000.00 has been used, f6'r the officer's,
salary.
v. ;

The

American

not

/V;i

ods.

pre-war

production has always stoppages cannot be too
strongly
been at least 50% above the aver¬ (stressed.
The
major strikes of
age. level in the late thirties, and
early 1946 delayed the achieve^
for the past six
months, following sment of today's record employ-;
the settlement of strikes in basic!
iment and production by several

,.39,356
^42,815

•

The

normal

The

priority and allocation

tional problems - which must be
solved by particular
techniques in
each instance, (2) from lack of

;/•// ■!///.!/;/!/;.///. ■; ./■!'• | Labor-Management - Difficulties,
; During the reconversion period |
The : serious impact of work
industrial

The individual taxes have been computed at 1946 rates with¬
out considering any exemptions. .■ / '/\
v;,'
s//. ./ - ^ •

disputes.

war-time
powers

licked., /-!/

Shown In

the

well"

are

most part

with Am'ts

^ /./ 100,000/./
/36,046,. //'/ 23,719, •
V i19,0961/;/
j,.*At these, levels of profit per
partner, present taxes favor partnerships., Proposed changes jhy tax laws for 1947 would further increase
:/ partnership advantage. Ifthe amount - retained <• by the corporation

curbed, reducing col. 5 accordingly..

stabilization

There has been no bfeak.in the
agency's policy of getting rid of>
orders and regulations just as
Soon,
as their
essentiality can no lpnger!
be demonstrated. The burden
of
proof as to the retention of a par

big

Total for
Corppaj'on

Deducting Salary,
Dividends and

"•/

products

•the. process of being
Federal /Govern¬ of rapidly.
*

the

gram

ment.

There

Col. 2
;; ;

cess

sue-.

great tribute to American
industry
and
American
labor.

32,000*

.90.000

form

-,.$15,a57.
.-.$11,710
..-$5,821,'
$14,531
18,263 / ::;r/a3,131 //, /
4,340 ..17,471
40.000^;"
6,076.
20,679
50,000
: 24,521/ / " »16,337
'
8,246 / /// 24,583
70.000
29,986
,119,553 "-12,586 ^
32,139
-

essential to the continued

end

necessary for the pro¬
serious
of
low-priced
ftems.

ment

exist

;

unemploy¬
ment of people moving from
year and is now virtually out < of
job
the reconversion woods. The facts to job and. people with particular
speak for themselves. And in
this; skills, who, .cannot find work Ao
report I have endeavored to sum their liking where they prefer to
up
those
facts.
Together
they work. Such unemployment prob¬

.......

*'■ ^
.
...
CORPORATION BAS1S.Fed. Income Taxes- Fed. Income Taxes

Amount

duction

andj

This country has made tremen¬
dous production strides in the
past

Taxes

The Production Record

Francispo; M. A. Wil-

Comparison Showing Amount Retained

/,/■//*/'v'V;/'Income.'

■m.

t/ / / Attor
Taxes,/Partoer^hips ys. ^Corporations

;

ess; ^
/m/ 1 j/.rC,.
5/ Facilitate the fulfiHment of
re/
lief and other essential
export
:
programs; *
:
I
6. Allocate scarce
materials

better
solution
must
be
found for settling labor
manage¬

ies:

and, barring major' work
stoppages/ should be fcchieVed by

ultimately the leans; Charles L. Smith of Ben¬
character -of member firms, and
nett, Smith & Co. of Detroit; Hen•thus of the Exchange itself, might
ry .D. Wieand of Bioren & Co. of

,//

hand

proc-:

months.

that

•

final

// facilities

...

break bottlenecks which would

recent

period of time under
the momentum that has
been ac¬
cumulated. Shortages which still

impede the reconversion

;

Some

reasonable

made1

Work stoppages must be avoided.

sible to achieve maximum
output
for most commodities
within a

;

George R. Kantzler of E. F. Hut& Co.; GePrgo W-. Carpenter of
Jessup & Lamont; Chalmers Wood

been

Generally the economy is in a
healthy condition. It should be pos¬

above/(Point ton.

new

this

out

wave, of work
stoppages
time, or in the next few
months,, could' well lose for the
country much of the gain that has

a.t

tv-

pointed

man

cisco;

"Upon

turn are determined by taxes, and

total

Wanted—A Better Solution

Joseph

E. 'O'Connell

Dean Witter

ore

similar factors so that
effects of any one iso¬
work stoppage cannot be ac¬
curately eyaluated.

Nugent

'Zj.it ./is

titude

the

members of the Ames'
committee,
analysis," the hayd; the^/official
tot /on*;, firms; with which theyv;are >• con¬
Vis v.; corporation
would: seem to, have; nected:
,{ little direct bearing on the price,
New York
(Continued from page 16)
/ fit seats or the volume of. business;
Oi;der of Oct.4, 1945 which estab- to consumer
John L. Clark of Abbott,
outlets; at rates "well
lished the agency:
; /done by the Exchange. It has been tor
•"
I. above prewar levels! The fact that
Paine/ Jacob; Bleibtreti pf
/-implied that corporations have Abraham &
Co.; Otto E. Dohren- 1. Expand the production,of macannot be readily pur/^/accessible to them i m port an t wend of
•/terials in short supply,
Baker, Weeks & Harden;
/.
: |'chased is the result of, a seemingly
/ 'sources of 'commission? business H. Allen Wardle of
the
Delafield & 2. Limit
manufacture,
of insatiable demand rather than a
1 not now being tapped by member
products for / which- materials, dearth of production. /
Delafield; M.\ Donald 1 Grant; of
;firms-r-an unlikely circumstance
ir»T* far>ilifiac
Fahnestock
Or facilities are incnffipionf•
!
&
Co.;/: David / W.
insufficient;
v
;in view of the widespread activi¬
Current Shortage .of Supplies /
3. Control inventories
Smyth of Filor Bullard & Smyth;!
so
as
to;
ties of member firms. The price of John
/
avoid speculative
L; Goodbody of Goodbody
supply
hoarding and 5'iiariy /prpchi^tk in
seats is
determined/in the long & Co.; Leonard /D. Newborg of
unbalanced distribution which are already moving into balance.
run
by earnings "to members or
HaUgarten & Co.; George U. Har¬
/would curtail total production;! The
remaining
problems
of
/ firms who own them. Earnings in ris of
4. Grant /priority
maximum
Harris, : Upham &
assistance
output
of
Co.;
to; achieving

manufac¬

Chicago; Paul J. Nugent of lated

Farwell, • Chapman & Co. o^
Gardner:; of
Chicago; John P.! Lins of Foster St. Louis; Buford Scott
of/Scott
Bros.,: Young & Co., of Toledo; &
Stringfellow
of
Richiinond;
A> V. I. Brokaw of Friedman, Bro/ Frederick Nussbaum of I.
M, Si¬
&aw & Samish of St. Louis; Willis mon &
Co.. of St. Louis; Thomas
D. Gradison of W. D.
Gradison & E. Hasty of < Sincere
i Co/ of
Co.: oL, Cincinnati; •'!• Edmund W.
Chicago; Walter A. Hamshaw of
Harrispn of Harrison & Co. of Sutro & Co. of
San Francisco;
Cincinnati; Walker Hill of Hilt Harry L.; Franc of
Waldheim,
Bros, of St. Louis; Norman S.
Hill! Piatt & Co. of St. Louis; Irvin F.
UL Hill & Co. of Cincinnati.
! Westheimer of Westheimer & Co.
/ Also: Wayne Hummer
of,Wayne of
Cincinnati; Dean Witter of
Hummer & Co. of Chicago; Wil¬

the

parts

delayed or failed to
shipments of finished parts.

Other, impacts were felt from
sup¬
pliers of/textiles, paints, wiring
devices, batteries, etc. All of these
impacts are mixed up with a mul¬

Son &/Co!: of
Philadelphia; Paul
E. Murin of David A.

Noyes

their

were

make

Lynch, Jr., of Moore, Leon¬

Co. of

when

turers

Lynch of Pittsburgh; Nor¬
Mesirow of Chicago; F. Eu¬
gene Newbold of W. H. Newbold

increase the price

■

Exchange and

Co.

Hunter

man

a,
considerably less liquidr^asset
than a, partnership, an
important
tbue corporation'."
consideration / for : many
/"
older
The second point, according to;
men.";/!////; //////-Z / '/ ■ /////
ijts authors, attempts to rebut the
The
Committer in Opposition to, liam E. Hutton of W. E. Hutton
contentions of the 'Ames' group; Passage of the
.Permistivfi//:In-! & Co. of Cincinnati' Edward D.
that ; incorporation (would bring corporation
Jones? of- Edward D. Jones! & Co.
;Ab&£n<fe

ard &

Clement,

counsel,, in aj
letter addressed to the Exchange Stockof
member
corporations
op, Jan. 7, 1946, confirms this eon-; would be hedged about with many
tention (that the extent to which limitations restricting ownership
Corporations can be used for any and transferability, making itjp.
surplus accumulation is open to, PP Z^y^ayi/ciprtipargble/ to;

Frank

,ti,ye position of partnerships as
'compared with corporations//:/ ;
,On the sixth point, the booklet;

burgh; John G, Curtis

McK.

rules

!tax bill which, from all present in.-!
;di,cations, will improve the rela/

hit

burgh;
Kelvy

clearing member, even. ♦ after Curtis & Co. of Chicago; Richard
were passed
confining clear¬ W. Courts pf Courts & Co. of At¬
ing privileges to partnerships)." >/ lanta; Allan C. House of
Curtiss,
The fifth point denies that/the House & Co., of
Cleveland; Jerome
corporation possesses greater at¬ Tegeler of
Dempsey-Tegelpr &
tractions for new capital. "Here Co. of St. Louis;
Presley Edwards
again," the booklet reads, "there of A. G. Edwards & Sons of St!
is no demonstrated corporate su¬
Louis; Barnett ^aroll of Faroll &
periority over / the / partnership. Co.; of Chicago; Ralph Chapman
as

new

39;

of St.

Baltimore; F. M. McGuiness of Chaplin & Co. of Pitts¬

'if it is conceded that at certain poration was compelled to., admit
"high income levels present taxes: the Farmers National. Grain Corp.

Paul Brown & Co. of St.
Louis;
Frank B. Cahn of Frank B. Cahn
& Co. of

id,ends, in raojst cases tax consider¬ be entirely changed—(in Chicago,
ations penalize corporations. Even; the Board of Trade
Clearing Cor¬

;

D.' Frost,

Louis; N. K. Parker of Kay,. had to shut -down
for lack of coal
Jr., Of Bog^rdifs/ Frost & Ban¬ Riphards & Co. of
Pittsburgh; at their own plants/ and again
ning of Los Angeles; Basil M. George E. Booth
of Lamson Bros. as steel
shipments took time to
Jones of Branch, Cabell & Co. of & Co. of
Chicago; L. W. Young (recover. Again auto makers
were
Richmond; Sidney J,; Adams pf Of. A. E. Masten & Co/of
Pitts¬

Incorporation

(Continued from page 6)

Francis.

idlyfilling,. and
after end products,

much-sought-

suchs

radios,

electric ranges, washing
machines,
and vacuum

cleaners,

are

flowing

system. These reactions show their
effects with, differing time lags in"

different/industries.

Sometimes an
industry: will feel the impact more
thantoneeiand from more than one
source;

v' For

strike of
bile

Davis With Victor Uhl
(Special to The Financial Chronicle)

SPRINGFIELD, ILL.
sell

Davis

has

become

—

C. Rus¬

affiliated

instance, the coal
last Spring hit automd- with Victor A. Uhl & Co.,

producers

once

when

Building.

THE COMMERCIAL ft FINANCIAL CHRONICLE

level.

They have loads of "in¬

side" information which

Tomorrow's

they

that

But
of

Markets

Whyte

stand

can

see

Phiia. & Reading Coal & Iron

Pennsylvania Brevities

nothing.

are:

includes

ities

three

and

has

substantial

amounts two classes of debt

different

of preferred stock; of

then

Reorganized in 1945, Philadelphia & Reading Coal & Iron Co.

(Continued from page 12)
"the present capital structure,

which

call attention to them

sooner

Walter

all I

Here and
a
few stocks pretend
mean
business.
I no

mass

to customers in the
hopes that the customers will there
come through with orders.
they
on

pass

make

would

out.

Thursday, January 2, 1947

year

calendar
common

stock

secur¬

capitalization.
Indications
are that earnings will
exceed $3
on the
1,444,086 shares outstand¬
ing, over three times the 1945 re¬
sults. Dividends of $1 were paid
in 1946, although the stock is not

classes

which

completed its first
under its simple

sev¬

they shy away, acting eral are non-callable issues, is un¬
After the customers' men
like they didn't .mean any
duly and ? unnecessarily compli¬
come
the boys in the back
thing. It was all a mistake. cated and results in an unfair and
rooms
who use slide rules,
inequitable distribution of voting on a stated dividend basis. Im¬
®==3y WALTER WHYTE;
power among security holders and proved earnings reflect larger coal
charts, statistics and chit-chat
Maybe once the New Year of various other companies in its shipments. The hard coal industrySleepy market lacks interest, with other lads working for
is behind us, something else holding company system."
was, not affected by strikes and
present or for immediate fu¬ other houses. At regular pe¬
Also cited is "the present ar¬ during
the soft coal walkouts,
will appear; something that
ture.
Apparently market is riods, or irregular ones, they
additional shipping facilities were
has more staying power than rangement, under which various
iSsue market letters that are
available to anthracite

Says—

waiting to get over the holi¬

bellied

week

thought, the
-market was at the mark and
ill it needed was a ready-set,
Last

sand

In¬

it would go.

away

stead it had

series of false

starts, and at this writing, is
still kind of,

This

champing at the

the place

where I
few, theories
.and
expound on them at
length. I could mention the
v

develop

should

customers
warm

huddle

may

their vocal chords

key people
in Government, and so on tac£
of various

;

now,
dull

and

it is merely a tire¬
market,

and thing to say about such mar¬
The

kets.

imaginations. In the hierarchy
dom which afflicts me also
are the partners who sit in a
affects others. It is frequently
hush-hush
atmosphere sur¬
under cover of such lackadai¬
rounded" by
oak
or
pine
sical; action that buying of
paneled rooms each partner
more-than a casual sort goes
trying to emulate the Men of
Distinction.; These partners
i'Jkl--:: :''d
*
* ^
also have customers who they
This might well he the case
guide by phone. Sometimes
at present.
So I repeat last
they don't even have to be
week's

guided.V The customer may

merely takes

•

which to base all sorts he doesn't it

;and opinions. Na¬ man on the floor "was out
turally most of these would smoking, or the crowd around
l>e rehashes of somebody else's
tfye post didn't seem to know
opinions. But, what of it? anything.
■
,
\

-of theories

are

that these in turn

rewrites

were

still other

show you how to make money
the interpre¬ the
easy way. On top of them
ticker tape and all are the statistical services

ters

the

Practically

translux.

every

"boardroom chair warmer has
a

pet idea of what is behind

each stock that shows Up on

income

down

break

who

statements and balance sheets

why

is bound to

stock

certain
up be¬

and at the slightest cause—and then come the
provocation, or no provoca¬ multitudinous reasons.
Fre¬
tion, passes it on to his neigh¬ quently the stock under dis¬
bor. Then come the custom¬
cussion, instead of advancing,
ers' men
(t o d a y, they're
goes down. That seldom is a
called
customers'
brokers)
major worry. .The list of
who are on a slightly higher stocks is so
large that if one
goes down, another may 'go
up, so somebody is happy. ^
Established 1856

:><

I too have been poring over
the stock tape in the past few
;

Members

York

New

Stock

York

New

Curb

York' Cotton

New

Board

Chicago
New

Orleans
And

Exchange

market action has been kind

r(' Inc.

Trade

,
..

Cotton Exchange

other

days, though not avidly. What
with parties and things, the

Exchange

Exchange,

Commodity

l'.:,

; '

Exchanges

N. Y. Cotton Exchange

secondary of late. Having

told

how other people

you

work, I should come up with

something original, something
Bldg.

DETROIT

PITTSBURGH
<

H//

Pacific Coast

associated

years.
years

that

holders last month. The company

reported net income of $2,001,837
months, compared
with net income of $1,975,192 for

for the first six

all of 1945. Net sales for 1946 are

was

Bros.

man

Worms,

Stock Ex¬

members, and for seven
years before that was manager of
the bond department at H. Hentz

York

graduation from the
Wharton School of Finance, Uni¬
versity
of
Pennsylvania,
Mr.
Buechler started his business ca¬
reer with the underwriting house

Executed

Orders

ation, manufacturers of refrig¬
eration
and
air
conditioning

Schwabacher & Co.

$1,200,000

Atlantic

for

//,

-mmrnm—

SUGAR
1,

•

New

'' i""' *

\«

Chicago

counsel,

have

Tyler

Sidney

associated

Vice-President

with

the

and

Di¬

^vYork5,.N.iY.

Wires

—

$2.25 dividend rate on a

"■

Saturday, Dec. 21, to enjoy the
delicious meal, S. W.
S. K. Cunningham &

Co., President of the Club, intro¬
the

duced

N. R.

Very Reverend

High Moor, Dean of Trinity Cath¬

edral, who delivered

Christmas message.

inspiring

In commem¬

oration bf Dean Moor's long
with

ciation

speaker

the

its

Bond

Christmas lunch-

Cltili*

and other events, the

eons

asso¬

Club

presented him with a handsome

silver, fruit

graved.

The

;

made by

suitably

bowl,

en¬

presentation

was

Owen Kraft, Blyth & Co,,.

Inc., Chairman of the Christmas
were sung

by:

Christmas

choir

com¬

posed of Bond Club members un¬
der

direction

the

of / J.

Julius

Baird, Musical Director, Organist

Blair'&

Arthur Batty,
&

Kraft, other

of Phillips, Schmertz

Robinson;-James D. McKee, of

Woods, of First Boston Corpora¬

mately $50 per share. Conver¬
sion rate would be determined
by the directors * prior to the
public offering. P
•

reduction

would

be used for a

$5,000,000

bank

ers-will also be asked to redesig¬

Co.) Ind:, 44 Wall Street,'

In addition to Mr.

Green, Ellis & Anderson; John;P*

Proceeds

Calvary Epis¬

copal Church.

corporation approxi¬

to net the

loans, for plant improvement and

.Schultz With Blair & Co.
f

nate the present

capital stock

stock and to increase the

tion; James T. Brown, of the MelX'

ion National Bank & Trust Com¬
pany,

^d John L. Fitzgeralll, of

Singer, Deane & Scribner.

Edw. C. Bendere Jr. With I
Union Securities

—

Barbara
Sacramento

Santa

Oakland

—

Securities Corporation, 123 South
Broad Street, announces

that

Lloyd GrSchnltif has beebme' asso¬

authorized shares from 962,046 to

ward C. Bendere, Jr.,

th^^rrii'ih^thei" sales

1,500,000 in order to provide for

Col., U. S. Army Air Forces,'has
become associated with the firm*

Fresno

department,

' v-I

; preferred conversion,

,;;

;

Ed¬

common

ciated'With

I
j?

Corp.

PHILADELPHIA, PA. —Uniora

New'; York ^tatfiannounced that

tQ^finqipfil-QjyiteS^

Francisco

Monterey

general improvements. Stockhold¬

(Associate)
Board of.iTrade

14 Wall Street

San

New,

Exchange

COrtlandt 7-4150
Private

DIgby 4-2727

that

become
as

Inc.,

Associates,

investment

York Curb Exchange

Exports—Imports—Futures

York Stock

Red Room of the Duquesne Club

$50 par, to be offered "subject
to market conditions" at a price

■

•

rector.

Members
Nero

firm

the

members of the Committee were;

announced

5, N.Y.

Club

Bond

$16,000,000 convertible pre¬
ferred stock. Present plans are

vi—*

has

the

assembled

In 1942 he han¬
Brothers the

bond

York

99 WALL STREET

Pittsburgh

secondary
offering
made in Wall Street, which

nual meeting, Jan. 14, on

Lehman

for

Barrett

Pacific Coast Exchanges

members

and Choir Master of

involved

■PITTSBURGH, PA.—More thai?
100

equipments will vote at the an¬
capital
changes which will include the
creation of an authorized issue

Speyer & Co.

ever

;

Christmas Luncheon

carols

Corporation

/Stockholder? of York Corpor¬

After

ozonation

Luncheon Committee.;

& Co.

Barrett Assoc. Officer
"

$300,000,000.

plans to add between 40 and 50
super-markets to its chain during
1947. These units, which are of
the ^elf-service
type,
will be
leased or built by the company. ' :

Richard K. Buechle|i

change

exceed

expected

Mr. Park stated that the company

ment of New-

Belmont pumping
This is one step in the
the

Following
Steinecke,

grocery/chain for 1946 are
expected to exceed all previous
records, William Park, President,
told a special meeting of stock¬

partner in
charge of the
bond
depart-

Club's annual Christmas luncheon.

Gross sales and net earnings of

For six
prior to

installation

plant

Pittsburgh Bond Club
<

this

five

the
Mr.
"The / book

American Stores Co.

for

last

signed a contract with1''
Welsbach Engineering & Manage-^??ment Co. for $610,000 to cover cost n

into

:'193 W!- 4'

department at

the 1

that

City has

Lehman

Bernard!

Mayor

announced

has

years,

reinvested from earnings since;

had

Philadelphia's
Samuel

station.

'than $10,000,000 will have been

of the trading

the

said:

City's program to provide better
drinking water.
*
t

have

earnings

back"

recent

$8.87 per share in
1939 to $17.23 as of Dec. 31,1945,
We believe that when the ex¬
cess
of net income over divi¬
dends for 1946 is added, more

been manager

Brothers

mandatory

favored

♦

value of Philco common has in¬

tional depart¬
ed e n t..
Mr.
Buechler

228

Majorities of all nine P. B. A.
form of /

institu¬

their

Securities

NEW YORK

which

"plowed

creased from

Richard K.

become

while

The

disbursements.

Ballantyne

Coast Line bonds.

LAMBORN & CO.

been

manager

first

GENEVA, SWITZERLAND

dividend

tent

Whyte

with the firm

dled

NEW YORK 4, N. Y.

has

some 4

Saturday closing for entire year*

shared;'.v\'; Klri commenting Upon the ex¬

Kaib, Voorhis « Co.

Buechler

against

form of Saturday closing. Of the ^f
/total, 241 banks, including 30 in 3;
Philadelphia,
voted
for
plan - ;/
: adopted
by
the
committee*

reported income of $1,151,206 ih-the September, quarter,
equivalent to 77 cents a common

of the New York Stock Exchange,

CHICAGO

Thursday.

today that

banks

company

Kalb, Yoorhis & Co., members

and show you

the tape

H. Hentz & Co.

in. this

announce

163

and

will reflect net income in excess

Bmehler Heads Dept.,
Of

Association*

Results of poll of P. B. A. mem-

•

are

Bankers

sylvania

the.

the Penn-,

ber banks showed 602 banks for

ohthe; part bf' Philco sup¬
andMhe year just closed

business

digested thought and opinion.
"First there

culties

Th.en there • are .the profes¬
peoples'thoughts. Actually all sional market advisors who,
Wall Street is a mass of pre- for so much a
month, will

Legislature by

;

pliers,

—Walter

May

promptly

proposed

1947

largely to labor and other diffi¬

Chances

from

groups
favored some
portion of 1946, due h Saturday closing.

in the earlier

Chronicle: They are presented as
those of the author only.]

More next

banks

September,
with
permissive/ ;
closing for balance of year, wilf V i
he

than offset losses sustained

necessarily at any
because the time-. coincide with'' those of the

was

sylvania
/

According to John Ballantyne,
President, operating earnings of
in recent months will

expressed

datory Saturday closing of Penn- /

Philco Corp.

be held.

Legislation providing for man-

all

order and

■

Saturday Bank Closings

;

Philco Corp

v.;

stocks, though by no means
forget the critical levels
under which they should not
doesn't have to advise.

ner

advice to hold

mauseurti.yknows
have tries to fill it. If he? fills?; it ^ [The vxevis
^enough primed matter before well, he's? a good; broker.If tiHicl$*rtb not
me on

kind of bore

same

producers.

transportation properties of the
Pittsburgh Railways system, are
owned by 54 different corpora¬
tions under a system of leases and
operating agreements."
Also the
arrangement "pursuant to which
Philadelphia Company Owns cer¬
tain gas utility assets which are
leased to and operated by Equit¬
able Gas Co., and the existence of
the; large open account on the
books of Equitable Gas in favor
of
Philadelphia
Company / and
Pittsburgh & West Virginia Gas
Co., bearing 6% interest." *

hot stove.

full of
ennui. There is, however, one
some

around which

stoves

portal-to-portafsuits; the com¬ be an investment trust or a
ing Congress; the state of bank.; In that case the part¬
mind

snowflake

to usually masterpieces of inuendo? These serve as the pot¬ Right
; j

day binge; for Congress
start, before it moves.

formerly Lt»;
,

Volume 165

Number 4556

THE COMMERCIAL & FINANCIAL CHRONICLE

in
•i'lt.'l y'

■

•

Acme
June

Electric Corp., Cuba, N. Y.
filed

132,740

cumulative preferred stock at $115 a share plus accrued
dividends. Indefinitely postponed.

($1 par) common stock.
Underwriters—Herrick, Waddell & Co., Inc., and First
Colony Corp.
Offering—To be offered publicly at $5
a share.
Proceeds—Company will receive proceeds from
the sale of 68,880 shares and four
selling stockholders
the proceeds from the sale of
63,860 shares.
Company

•

equipment, and the

1961,

Underwriter

Co.,

Inc., N. Y.

(1/3)

investment.

Henry Hall Marshall, 50 Broad

—

general corporate purposes.

Street,

;

March 30 filed 2,343,105 shares of common
(par $5) plus
an additional number determinable
only after the re¬
sults of competitive bidding are known. Underwriters—
To be

filed

Probable

bidders include

First Boston Corp. (Jointly).

the exercise of stock purchase warrants for
purchase of
stock at $2 a share above the bid
price of such

Offering—Price to public
by amendment. Dec. 23 the recapitalization plan was re¬
jected by the SEC and the company was allowed 30 days
in which to file amendments
providing for additional

the effective date of the registration. Com¬
pany will sell warrants for 25,000 common shares to the
payments to
underwriters at 10 cents a warrant. .The
remaining war¬ 7
volved.
rants will be sold to officers and
on

employees of the com¬
Price—Debentures at 98. Proceeds—Company will
$1,025,000 of proceeds of debs, for payment of 8n
indebtedness to Bankers Trust Co., New York.
Balance,
will be added to
working capital. Offering postponed. 7

amendment.

Dillon, Read & Co. Inc., White Weld & Co., and Shields
& Co.
(jointly), and W. C. Langley & Co. and The

common

the various classes of security holders in;
'.
$
7
'
„

pany.
use

Air

American Zinc, Lead & Smelting Co., St. Louis
Sept. 6 filed 336,550 shares common stock (par $1). Un¬
derwriting—No underwriting.
Offering—Stock will be
7 offered for subscription to : common stockholders in
the

Lanes, Inc., Portland, Me.

ratio

Atlantic Refining Co.,

additional

one

share for

each

Philadelphia

Oct. 29 filed 293,000 shares ($100 par)
erence

Underwriter—Smith, Barney & Co., NeW
Offering—Stock will be offered for subscription

York.
to

cumulative pref¬

stock.

stockholders

common

the

basis

one

dtf

preference stock for each nine shares held.
Unsub¬
scribed shares will be sold to the underwriters who will
reoffer it to the public.
Price

by amendment. Proceeds
$15,540,000 of the net proceeds will be
applied to redemption of the company's cumulative pre¬
ferred stock, convertible 4% Series A, at
$105 a share.
—A maximum of

American Water Works Co., Inc., N. Y.

and

$100 each. Underwriter—Associated Fund Inc., is thfe
sponsor-depositor. Price—At face amount. Proceeds—FOi*

New York. To be offered in units of 2 preferred shares
and one common share at $1.10 per unit. Proceeds for

re¬

investment. Business—Investment Business.

Products

Soil

(letter

which will be offered to underwriter

50,000 shares ($1 par) common stock.
Underwriter—Ames, Emerich & Co., Inc., and Dempsey
<& Co., Chicago.( Offering^-The debentures will be of¬
fered publicly. The common shares will be
issuable upon

common

notification) 541,818 shares of 7%
preferred stock (par 500) and 290,909 shares of Class A
common (par 100). Latter amount includes
20,000 shares

Aerovox Corp., Bedford, Mass.
Aug. 22 filed $1,500,000 of 5% sinking fund debentures,

due

American

Dec.

also will receive proceeds from the sale
of 20,000 war¬
rants for common stock to underwriters at
an aggregate
price of $200.
Of the net proceeds ($292,940) $50,000
will be used to
pay current bank loans; about $20,000
will be used for
machinery and
mainder for working capital.

INDICATES ADDITIONS SINCE PREVIOUS ISSUE

two

held.

The balance will be added to general funds for
corporate
purposes including repayment of obligations, acquisition
of additional production, and expansion
of

refining,
transportation and marketing facilities. Offering tempor-7
arily postponed. 7
77
-7." '
'7.
'/'] "
7

Bachmann

Uxbridge Worsted Corp. -7

Nov. 27 filed 45,000 shares of 4% preferred stock
$100) and 200,000 shares of common stock (par

(pax
$1).

Underwriters—Kidder, Peabody & Co. and Bear, StearhS
& Co. Proceeds—Will go to
selling stockholders. Price
by amendment. Offering of preferred at end of January;;
common may be withdrawn

Basic
Nov.

Food

Materials, Inc., Cleveland, Ohio

7 7

(letter of notification) 5,000 shares (no par}
common, to be offered to stockholders; 295 shares of
($100 par) preferred, 4,750 shares (no par) common and
$50,000 10-year 5% debenture notes, all to be offered to
the public. Prices—$5 per common share to
stockholders;
$10 per common share to public, $100 per preferred share

Unsubscribed shares will be offered for subscrip¬
notification) 15,000 shares each of pre¬
tion to officers and directors of the company
Price—By
Offering price, $10 a preferred
amendment.
share and 1 cent a common share.
Proceeds—Working capital. Offering inIf offerings are made
in the State of
7 definitely postponed.
'
<
"
»
7
Maine, they will be made by Frederick
77' '\77
7^7./' 47 y 7.• '.77*
^77777^-77'7'•''Oi\47^,vv7777>7;y7;777yy'7
C. Adams & Co., Boston.
To complete plant and equip¬
and debentures at face.
No underwriting.
Arkansas Western Gas Co.
ment and to provide
To increase
working capital.
\
;
working capital.
Jiine 5 filed 33,639 shares of common stock
(par $5).
•
Alexander's Department
Underwriters—Rauscher, Pierce & Co. Inc., and E. H. 77.7
Stores, Inc., Bronx,
Beaunit Mills, Inc., New York 7:7/7.•
Rollins & Sons Inc.
777; '7
Offering—Stock will be offered to
7:
N. Y. (1/2)
the public. Price by amendment. Shares are
Sept. 27 filed 180,000 shares ($2.50 par) common. Under¬
being gold
Dec. 23 (letter of
notification), 3,500 shares ($50 par) 5%
writer
by six stockholders.
White, Weld & Co., New York. Price — By
cumulative preferred. To be offered to
employees at $50
amendment. Proceeds—Of the total, 140,000 shares are
a share of which
$25 will be paid by employees and $25
Armour and Co., Chicago 4
being sold by St. Regis Paper Co., New York, and this
by company under profit sharing and stock
purchase
remaining 40,000 shares are being sold by I. Rogoshs,
July" 12 filed 350,000 shares (no par) cumulative first
plan. No underwriting. For general funds. President of Beaunit Mills, Inc.:.
;7; 7^7;
preference stock, Series A; 300,000 shares of convertible
7,7"'*
7
Oct. 9 (letter of

ferred

and

common.

•

■

—

7 second preference stock, Series A, and 1,355,240 shares
Inc., N. Y.
4
common stock
{par $5)V Underwriter—Kuhn, Loeb &
par) commori stock.
-.Co., New York;u Offering—The 350,000 shares of first
Underwriter—Dillon, Read & Co. Inc., New York." Offer¬
preference stock will be offered in Exchange to holders
ing—A maximum of 100,000 shares may be sold
by com¬
of its 532,990 shares of $6 cumulative convertible
prior
pany to persons, firms, or corporations with whom the
7 preferred stock at the rate of 1.4 shares of first prefercorporation had network affiliation agreements on March
7 ence stock for each share of $6 prior preferred. Shares
31. The remainder will be offered
publicly. Price by
of first preference not issued in
exchange will be sold
amendment. Proceeds—To prepay notes payable to ac¬
to underwriters. The
300,000 shares of' second preference
quire radio station WXYZ, to construct broadcast trans¬
stock will be offered
publicly.
The 1,355,240 shares of
mitter for station KGO at San
Francisco and for working
common will
be offered for subscription to common
capital.
:v77. :r7:;7:- 77 7\
stockholders of the company in the ratio of one-third
"■ f'
-$■
* 7'7'
7-.'-A
y'77; y
7y.,
American

June

Broadcasting Co.,

filed

950,000 shares

($1

■.

•

American

■

Building

•

"■

chare of

Corp.,

Dover,

Del.

Underwriter—E. M. Fitch & Co., Phila¬
Proceeds—For additional machinery, working

common.

delphia.

capital and other corporate purposes.

ferred stock.

Underwriter—White, Weld & Co.

by amendment.

Proceeds—Net

& Gosset

Corp., Morton Grove, III.

filed. 105,000-shares

($5

par)

stock.

common

Underwriters—Ames, Emerich & Co., Inc., Lee HigginCorp., and Kibbon, McCormick & Co. Offering —
,100,000 shares will be offered to the public at $9.50 a
son

share. The remaining 5,000 shares will be offered
by thecompany to its employees who are not now shareholders

7at $8.30
will

reduce

a share/ Proceeds—The proceeds from the sale
used to pay interest on debenture * notes and
loans. Business — Company makes hot water

specialities and industrial Dumps.'

;

-Unsub¬

ment.

will

of common will be purchased *
by the
Price—Public offering prices by amend¬
Proceeds—Net proceeds will be used to retire all

7 unexchanged shares

of $6 prior stock and to redeem its
Outstanding 7% preferred stock.

George Eastwood, President, in letter to stockholders,

•

V/ *

American Locomotive Co., New York 7

July 18 filed 100,000 shares each of $100 par prior pre¬
ferred stock and $100" par convertible second
preferred
stock. Underwriting—Union Securities
Corp., New York.
Proceeds—Net

proceeds, with
funds, will be used to redeem $20,000,000 of 7%

7 Sept. 27 filed 53,648 shares ($25 par) 4Y2% cumulative
7 convertible preferred and 150,000 shares
($1 par) com¬
It also

covers

shares of

common

and

proceeds from the sale of all

100,00

of the

preferred

The

common.

remaining 50,000
being sold by three stockholders.
Estimated net proceeds of $2,300,000 will be used
by
the company to pay off bank notes of about
$1,100,000
and to purchase additional
machinery and equipment
shares of

common

are

in the amount of $1,200,000.
•

Associated

Fund

Offering date indefinite.

Inc., St.

(letter

Louis, Mo.

notification)

41,000 shares of 5%
cumulative convertible $6 par preferred. Offering
price,
$6 a share. Underwriter—Estes, Snyder & Co.,
Topeka*
Kans. To pay outstanding indebtedness and expenses and
to open five additional stores in Kansas
City, Mo. Offer¬
ing postponed indefinitely.
7 ,. '
7
7
7 ;7

177

Berg Plastics & Die Casting Co., Inc.

Oct.

(letter of notification)
Price—$4

pie & Co., Inc.
tools and

reserved for issu¬

ance upon conversion of
preferred. Underwriter—New7 burger & Hano, Philadelphia. Price—$25.50 a pfeferred
share and $12 a common share.
Proceeds—Company will

receive

Sept.

common.

Artcraft HosieryCo., Philadelphia

mon.

Berbiglia, Inc., Kansas City, Mo.

underwriters:"

Price

amendment.

share held.

common

refinancing plan.

American Fidelity Co., Montpelier
Dec. 2 (letter of
notification) 10,000 shares (no par)
capital stock, to be offered to present stockholders.
Price—$59 a share. No underwriting.
For additional
capital funds for expansion purposes.
;7

scribed

for each

pre¬

proceeds initially

Offering date indefinite

new

said "we have come to the conclusion it will
riot be necessary to issue any additional shares of com¬
mon stock" as part of
company's

be added to general
funds, however, the company antici¬
pates it will use the funas for its building and expansion
program.

Dec, 22

American Colortype Co., Clifton, N. J.
Aug. 12 filed 30,000 shares ($100 par) cumulative

Price

Bell

..Dec.

•

Nov. 5 (letter of
notification) 20,000 shares each ($10
par) 5% cumulative preferred and no par common.
Price,
$10 a unit consisting of one share of preferred and one

other

•

share.

75,000 shares (10c par)1,
Underwriter—E. F. Gilles¬

Proceeds—For acquisition Of machinery,
materials, and for working capital.
(

raw

Birmingham Electric Co.
Company

shares of

inviting

4.20%

bids for

(1/7)
the

preferred stock

purchase of
to

45,473

(EST),
1852, 2 Rector St., New York City.
Probable bidders include The First Boston Corp.; Dillon,
Read & Co., Inc.; Blyth & Co., Inc.; Lehman Brothers;
Kidder, Peabody & Co.'
"
"
Jan.

noon

Room

Blumentha!

(Sidney)

& Co. Inc., New York

Dec 30 filed

17,500 full paid certificates in units of $100
each and 22,500 instalment payment certificates in units

7;77/'77777:77:■ (Continued

on page

42)

7777*,. 7'.'
.

☆
—

Corporate and Public Financing

SPECIALISTS IN

—

Underwriters and Distributors of <
77777;
;7.77;
'7"'/

United States Government Securities
77,,7,7* 77

State and
/7,7

■

Municipal Bonds

'V' 7 '7:' '

7'7^7"7

7:;

•/"•

V-!7-*:

777 77 7.

C. J. DEVINE

FIRST BOSTON

CO.

INC.

CORPORATION

Corporate and Municipal7

77/

ySecurities 7;7;v;i;;7/ 7 7-7

The

•.

7"•

• >7.

;■ 77

■)...

/777,

;

;: r:

•.

•

* y-

•

7 7

Kidder, Peabody ^ Co.
.

Founded 1865
.

48 WALL

Boston

•

New York

•

Pittsburgh

•

Chicago

ST., NEW YORK 5,

HAnover 2-2727
.

Chicago

and other cities

Aug. 30 filed 119,706 shares (no par) common and sub¬
scription warrants relating to 30,000 shares thereof.
Underwriting — None. Proceeds—For reimbursement
of
company's treasury for
funds expended in
re-

•

Boston

Philadelphia

•

Cincinnati
-

■

•

St. Louis
V

•

Pittsburgh

•

Cleveland

Members

New York

San Francisco
,

☆

of the New York and Boston Stock Exchanges
Boston

Philadelphia

Chicago

•

NEW ISSUE CALENDAR
Alexander's Dept. Stores,
Brooks & Fairlamb Co...

possible outstanding
Offering date indefinite.

Frontier Power

Co..

Brooklyn

Harman

(William) & Corp.____«.____Capital Stock
Orange-Crush de Cuba S. A
....Common
January 3,

1947

•

American Soil Products Inc... Pref. and CI. A Com.
Canadian Admiral Corp. Ltd.____.____

Union Gas Co.

(N. Y.)

May 3 filed 70,000 shares of cumulative preferred stock
($100 par). Underwriters—To be filed by amendment.
Bids Rejected—Company July 23 rejected two bids re¬
ceived for the stock.
Blyth & Co., Inc., and F. S. Moseley & Co. and associates submitted a bid of 100.06 for a
4.30% dividend.
Harriman Ripley & Co. and Mellon
Securities Corp. bid 100.779 for a 4.40% dividend.
In*>.
definitely postponed. ■ , ''•//:.•%•'% vv*-/;1-''//''

Common

__________

Colonial

Common

__________

Brooks & Fairlamb, Inc.,

Common

Dec.

Farbon Corp.__.

__A

Stock and Common

■

;

January 6, 1947

•

Leader Enterprises, Inc,...Common and Preferred
Baltimore & Ohio RR. (Noon)
Equip. Trust Ctfs.

Philadelphia (1/2),

Bureau

D. C.
Dec. 23

January 7, 1947

National

Inc.,

Affairs,

Washington,

;y:

;;

/'//

•

(letter of notification) 30,000 shares of common.

Price—$10

Birmingham Electric Co.______________ .Preferred

"Big" and "Little" Inch Pipeline.
__Pipelines
Chicago St. Paul Minn. & Omaha Ry., ///%■/ :/%
Noon (CST)____
Equip. Trust Ctfs.
1947

'January 13, 1947

Western Air Lines Inc

..Capital Stock

1947/r^•.^:•::ft^^S^

January 15,
General

Phoenix

Corp

Old Town Ribbon
Swift &
-

Carbon

Co._

Co._—-r__,—

"//
Fresh

Debentures

;

May 24 filed 312,000 shares of common stock (no par).
Stock will be sold through competitive bidding.
Under*
writers—Names by amendment.
Probable bidders in¬
clude Blyth & Co., Inc.; The First Boston Corp.; Harri-/
man
Ripley & Co.
Offering—Stock is being sold by
Standard Gas and Electric Co., parent, of California.
Bids Rejected—Standard Gas & Electric Co, rejected
June 25 two bids for the purchase of the stock as un-:
satisfactory. Blyth & Co., Inc., and First Boston Corp;
bid of $28.33 a share, and Harriman Ripley & Co. bid
of $24,031 a share.
Stock will again be put up for sale
when market conditions improve.

...Common

January 27, 1947
—Common

(Continued from page 41)"
of
_

ferred

3,907

cumulative

Canadian Admiral Corp.

January 16, 1947

Dry Foods Inc._

demption

pre¬

tion to stockholders at

per

share,

company on

Sept.

stockholders, including Harry Scherman, Presi¬
Meredith Wood, Vice-President, are selling

dent, and
the

remaining

200,000

shares.

Price by amendment. 1
its net proceeds for work¬
ing capital to be used for expansion of inventories of
paper and other raw materials and book inventories.

Proceeds—Company will

use

Boston Store qf

Chicago, Inc.
Sept. ,10 filed 30,000 shares ($50 par) 5% cumulative
preferred and 500,000 shares ($1 par) common. Under¬
writers—Paul H. Davis & Co., and Stroud & Co., Inc.
Offering—Preferred

will

have

non-detachable

purchase warrants for purchase of 30,000 shares of
mon

stock

of the total common,

stock
com¬

375,000 shares will be

offered for sale for cash. 30,000 shares are reserved for
issuance upon exercise of warrants attached to
preferred

fnd 95,000 shares are reserved for issuance upon exer¬
cise of outstanding warrants. Price—By amendment.
Proceeds—Net proceeds, together with other funds, will
he used to pay the company's 2% subordinated note in
the principal amount of $5,268,750 and accrued interest.

Bowman Gum, Inc., Philadelphia

;;

Sept. 27 filed 268,875 shares
writer—Van
amendment.

($1 par)

common.

Under¬

Alstyne, Noel & Co., New York. Price—By
Proceeds—Stock is being sold by share¬

holders who will receive proceeds.

Inc., Wilmington, Del.

Sept. 25 filed 12,500 shares ($25 par) 4%% cumulative
convertible preferred stock and 50,000 shares (200 par)
stock. Underwriter
C. K. Pistell & Co., Inc.,
New York. Price
$25 a share for preferred and $11
common

for

common.

Colorado Milling &

Proceeds—7,000 preferred shares

being sold by ^ommny, the remainder 5 500 m-«_
ferred shares and all of the common are Hing sold b$
are

Elevator Co., Denver, Colo*

ferred stock for redemption at $55 a share plus accrued
dividends. /Funds for the redemption will be supplied

by a short term bank loan. Proceeds from the sale of
preferred, together with other funds*/will/be/used
the bank loan. Indefinitely postponed.

repay

Columbia Aircraft Products
26

Inc.

•'

filed

sufficient number of such

same

Commonwealth Telephone Co.,

will be con¬

stituted upon consummation of a proposed merger into
the issuer of American Public Service Co., to provide

funds

retiring the preference shares of the issuer
Public Service Co., not exchanged for
shares of the merged corporation.
Underwriters by
amendment. Possible bidders: Glore, Forgan & Co.; Leh¬
Brothers-Lazard

man

Freres

Co.

(jointly);

by amendment. Proceeds—To redeem at $110 a
share, plus divs., all unexchanged old shares.
" ; %

Price

Smith,
:

Barney & Co.-Harriman, Ripley & Co. (jointly); Blyth
& Co.; Inc., Stone & Webster Securities Corp. and First
Boston Corp. (jointly)
Price by amendment. Bids to be

writer—None.

offered

(no par)

common.

Under-

subscription to common stockholders at
Unsubscribed
shares will be sold to underwriters.
Price by amend¬
Proceeds—Working capital, etc. Offering indefin-

For working capital.

Industries Co., Inc.

(Originally company filed for 80,000
$25 and 350,000 common shares.) -

par

preferred shares
V

•

Citizens Casualty Co.

of New York

Crawford Clothes,

Dec. 3 (letter

of notification) 5,000 shares of $1.25 prior
preferred being offered to stockholders at $25 a share.
The right to subscribe will be in the ratio of one share
for each 5 shares held. Underwriter—Salvage Adjust¬
ment Corp., New York, may be considered underwriters,
For general corporate purposes.
/
•,
:•
'
'''%■% %
College Education Insurance Co., Inc., SKirove,<

selling
•

stockholders. Offering dat^

Price

$15 a share.

Underwriter

—

M. H. Tobias, Sr.,

Curtis Publishing Co.,

indefinite.

Philadelphia ;

(letter of notification) 500 shares of prior pre*,
stock being sold on behalf of trustees under the

Dec. 23

will of Cyrus

(letter of notification) 5,000 shares of common.

Inc., L, I. City, N. Y.

9 filed 300,000 shares" ($5 par) 'common stock.
UnderwriteTs-^First Boston Corp., New York. Price by
amendment.
Proceeds—Go to Joseph Levy, President*

Aug.

fered

•■■■''

Dec. 20
—

York,

Aug. 2 filed 150,000 shares ($1 par) common. Under¬
writers—Aronson, Hall & Co. Price
$8.25 per share.
Proceeds—To repay demand loans and for general funds.

for

port, La.

after present public offering. Price—$2 a com¬
one cent a warrant.
Underwriter—L. D.

share,

Continental-United

share for each 7% shares held.

one

•

year

mon

rate of

//%:•■

one

Sherman & Co,, New,

Offering—Common shares initially will

itely postponed.

;

(letter of notification) 132,500 shares ($1 par)
common and 35,000 warrants for purchase of common

Aug. 21 filed 90,000 shares

Continental Car-na-var Corp., Brazil, Ind.

Nov.

Invited—Bids for the purchase of the stock will he issued ;
Jan. 17 to be received Jan. 27 or Jan. 28.
% >

T Central Soya Co., Inc., Fort Wayne, Ind.

Madison, Wis.

preferred, on a share for share basis, plus cash, adjust¬
ment. Shares not exchanged will be sold to underwriters.

for

American

and

share.

Sept. 23 filed 16,071 shares ($100 par) $4 cumulative
preferred/ Underwriters — Paine, Webber, Jackson &
Curtis and Stone & Webster Securities Corp. OfferingShares will be offered for exchange for $5 cumulative

—

purchase

public through underwriters. Price—$5
Proceeds—Approximately $50,000 for payment
of Federal taxes; $250,000 for payment of Lincoln-RFC
loan; $50,000 as a loan to Palmer Brothers Engines, Inc.#
a subsidiary; balance for purchase of machinery and
equipment and working capital. % / * **
/
* ' / .

Aug. 30 Central & Southwest Utilities Co. (name changed
by post effective amendment to Central & South West
Corp.) filed an indefinite number of common shares (par
$5). Sealed bids will be received for the purchase of a

ment;

Offering date indefinite.;

and for

Aug. 20 filed 70,000 shares ($50 par) cumulative con¬
vertible preferred stock.'
Underwriter—Union Securi¬
ties Corp., New York,
Price by amendment.
Proceeds
—Prior to the proposed issue of preferred stock, the
company plans to call its $3 cumulative convertible pre¬

shafts, diamond drilling and working capital.,
Book-of-the-month Club, Inc.. New York
28 filed 300,000 shares ($1.25
par) capital stock.
Underwriter—Eastman, Dillon & Co., New York. Offer¬
ing—Of the total, the company is selling 100,000 shares

account indebtedness

be offered to the

share in Canadian funds. Proceeds—For a variety
with exploration, sinking of

of purposes in 'connection

Oct.

and six

%%;;;;!/'-fy,

principal stockholders who waived their rights to sub-*
scribe. The
remaining 90,414% shares and 58,850%
shares not subscribed to by common stockholders will

Ontario
June 24 filed 400,000 shares of common stock. ' Under¬
writer—No underwriters.
Offering—To the public at

$10

Inc., N. Y.

150,000 shares ($4 par) 30c cumulative
convertible preferred stock, convertible into common
July 8 filed 150,000 shares ($1 par) common stock.
stock in the ratio initially of 1% shares of common for
Underwriter—Dempsey & Co. Offering—Stock initiall*
will be offered to common stockholders of Admiral Corp. £ each share of preferred. Underwriter—Floyd D. Cerf
at $3 a share.
Proceeds—$75,000 is earmarked for pur-1 Co., Inc., Chicago. Offering—Company offered 59,585%
shares for subscription to present common stockholders
Chase of machinery and equipment, and tools, jigs, dies
of record Aug. 6 at $4.50 a share in the ratio of one share
and fixtures; balance will be available for corporate <
of preferred for each share of common held. Rights
purposes. Indefinitely delayed.
'
*.
expired Aug. 20. Stockholders subscribed for 735 share?.
The offering to common stockholders excluded the two
Carscor Porcupine Gold Mines, Ltd., of Toronto,

decided to withhold action at this time.

open

Ltd., Toronto (1/3-10):% June

April 1, and for funds deposited in trust for
redemption on Oct. 1 of remaining preferred shares. Al¬
though it was proposed to offer the stock for subscrip¬
20

notes,

.Common

.—.Debentures

Central & South West Corp

Colonial Sand & Stone Co.,

additional: equipment. Any balance will be /added to
working capital. Indefinitely postponed.

For cash reserve.

share.. No underwriting.

Republic Indemnity Co.____Common and Preferred
■'

working capital/

crease

California Oregon Power Co.

January 8, 1947

January 10,

penses of Bermuda route. The balance will be used to in¬

($1 par) common stock;
Underwriters—Emanuel, Deetjen & Co., New York. Price
by amendment. Proceeds—Company will receive pro¬
ceeds from the sale of 150,000 shares and Generoso Pope,
President of company, who is selling the remaining 150,*
000 shares will receive proceeds from these shares. The
company will use its proceeds for payment of mortgage

(letter of notification) 50,000 shares of $1 par
class A common.
Price—$2 a share.
No underwriting.
For working capital.

January 4, 1947
1

Airlines, Inc., New York

150,000 shares ($1 par) capital stock. Under¬
writer—Auchincloss, Parker- & Redpath, Washington,
D. C. and Hornblower and Weeks, New York. Price by
amendment. Proceeds—Net proceeds will be used to pay
off a $550,000 loan to the Continental
Bank, & Trust Co.
of New York; purchase equipment and development ex-r

August 15 filed 300,000 shares

Southern Pacific Co,—Conditional Sales Agreem'ts

Specialty Bakers Supply Co.__

To, be used for capital stock required
'•
%
"•
,'7'V

Oct. 25 filed

Common

...

$149,300 mortgage liabilities.

tent

_______Preferred

Inc

Shreveport, La.
by charter. • '

present stockholders. Net proceeds to the company, es¬
timated at $147,500, will be used to prepay to the ex¬

(Showing orohahlm dat* of offering)
January 2, 1947

Thursday, January 2, J 947

,THE COMMERCIAL & FINANCIAL CHRONICLE

H. K. Curtis.

Price at market. To be of¬
Corp. Proceeds—Go to

fered through The First Boston
the selling

stockholder.

Cyprus Mines, Ltd., Montreal, Canada
May 31 filed 500,000 shares of common stock (par $1).
Underwriter»-^-Sabiston-Hughes, Ltd., Toronto,
Offer¬

UNDERWRITERS—DISTRIBUTORS—DEALERS

The Marine Midland Trust Company
Industrial, Public Utility, Railroad
and

OF NEW YORK

Municipal Securities

Transfer

Agent

•

Registrar

•

Trustee

ONE HUNDRED TWENTY BROADWAY

Hemphill, Noyes <®> Co.
Members New. York Stock
NEW

YORK

PHILADELPHIA

ALBANY

PITTSBURGH

NEW YORK

15, N. Y.

Exchange

CHICAGO

"TRENTON

INDIANAPOLIS
WASHINGTON

RECTOR 2-2200

ing—Shares will be offered to the public at 75 cents p.
Proceeds—Net proceeds, estimated at $300,000^*
will be used for mining operations.
/

share.

(Texas) Railway & Terminal Co.
($25 par) 5% participating
preferred stock.
Underwriters—Names to be supplied;
by amendment.
Probable Underwriters—Kidder, Peabody & Co., Merrill Lynch, Pierce, Fenner & Beane;
Rauspher, Pierce & Co.
Price by amendment. Proceeds
—Proceeds Will be applied To the redemption of 3,849
shares of 7% preferred stock and :for purchase of new
equipment and for construction as part of its modern^

Dallas

Nov.

27 filed 40,000 shares

ization and expansion program.

Volume

165

Danly

Number 4556

Machine

THE COMMERCIAL & FINANCIAL CHRONICLE

Specialties, Inc., Cicero,

July 26 filed 62,000 shares

III.

Inc., Philadelphia. Priee—By amendment. Proceeds —
Proceeds will be used to redeem
$355,350 4^% sinking
fund mortgage bonds, due Aug.
1, 1957, to pay off
certain contracts and chattel
mortgages of $72,000 and
$800,000 to reduce, principal on outstanding bank loans.

($25

par) 5% cumulative
preferred stock and 71,950 shares
(par $2)
stock 40,000 by
company and 31,950 by certain

convertible
common

stockholders. Underwriters—Paul H.
Davis & Co., and
Shillinglaw, Bolger & Co., Chicago. Price by amend¬
ment.
Proceeds—Company- will use proceeds, together
with a
$1,000,000 bank loan, to purchase

•

machinery,
to retire bank indebtedness. Offering date

rui

indefinite.'

''.C/;,-

Typesetting Co., Detroit, Mich.

"
c
filed 70,920 shares ($1
par) common. UnderC. G. McDonald &
Co., Detroit. Price — $5.50
share. Proceeds
Stock is
being sold by six share¬

Sept. 25
writer
a

proceeds.

capital,

■

Prices,

15 cents

per

debenture, $9.50
share

common

are

and

be offered to

one
a

certain

preferred

cent

shares,

Clearwater, Fla..

•

(par, $25) and 150,000 shares oi
$ 1). Underwriters—Van Alstyne,

■

Foreman Fabrics Corp.,

Fresh Dry Foods,

Inc., Columbia, S. C.

company is

capital.

.Frontier Power Co., Trinidad,

;

Oct. 25

filed

119,431 shares

writer—Sills, Minton &

co.

(1/2-15)

($5 par) common. Under¬
Price by amendment. Pro¬

are being sold
by three stockholders, in¬
cluding J. G. White & Co.; Inc., New York, which is sell¬
ing all of its holdings of-such stock. Following the sale
of its holdings J. G. White will no
longer be parent of

Frontier.

•

Company will receive

none

of the proceeds.

General Phoenix Corp., New York

Dec.

(1/15)

$2,000,000 15-year 4% convertible subor¬
dinated debentures, due 1962^
Underwriter—Paine, Web'ber,-Jackson" & Curtis, Boston. Price by amendment.
Proceeds—Company will use part of the proceeds to pur¬
chase 25,000 additional shares ($5 par) capital stock, at

and for expansion purposes,

Corp.,; New York 0I./4 X.00

•

General Waterworks

Dec.

Corp., Philadelphia ; .
(letter of notification) 2,950 shares ($100 par)

5% cumulative preferred. Price—$101 % a share. Underwriters—Minot, Kendall & Co., Inc., Boston, and Southern
.■.Securities Corp., Little Rock, Ark. For
partial liquida¬

■■■

by company for issuance to members of the
executive committee at 50
per share. Under¬
writer—Gillen & Co. Proceeds will be used for

tion of unsecured notes.

Farquhar

(A. B.)

Co., York, Pa.

•Sept. 26 filed 30,000 shares ($25 par) cumulative conivertible preferred; 45,000 shares
($5 par) common; and
;an unspecified number of common shares to permit con¬
version

the

preferred.

Underwriter—Stroud & Co.,

■

'Vn t'W

•'

;♦;

•

(William H.)

v-Vv

•*•*,&;/•••£*

Corp., Phila,

./t

(1/2-15)

Nov.

13 filed 300,000 shares of
capital stock. Under¬
writer—Smith, Barney & Co. Price by amendment. Pro¬

carrying of in¬

ventories

and

receivables.

Additional

is expected to be made available
ment

with the

filed

working

under

capital

credit agree¬

Chase National Bank.

Hartfield Stores,

100,000

Inc., Los Angeles

($1 par) common stock.
Underwriters—Van Alstyne, Noel &
Co., New York, and
"Johnston, Lemon & Co., Washington, D. C.
Offering—
To be offered to the public at $8 a share. ' ProceedsCompany is selling 60,000 shares and stockholders are
selling 40,000 shares. ; The company will use its proceeds
to pay the costs of opening additional stores and to ex¬
pand merchandise in its existing stores. Offering tem¬
porarily postponed.
•

Harvey (Sid)

•

Inc., Valley Stream, N. Y.

Dec. 26

(letter of notification) 2,950 shares of preferred
stock (par $100), 450 shares to be issued as a Christmas
bonus to employees and executives and
2,500 shares to

be offered to individuals from time to time.
Price—$100
per share. Not underwritten. Proceeds—To increase gen-

Oct. 2 filed 300,000 shares ($1
par) stock. Underwriter—
Mark Daniels & Co., Toronto. Price—tO
cents a share

(Canadian

Funds).

Proceeds—For

mine

development.

Glensder Textile Corp., New York
Aug. 28 filed 355,000 shares ($1 par) common, of which
55,000 shares are reserved for issuance upon the exer¬
cise

stock

prior preferred and 50,000 shares ($10 par) common.
Underwriting—None. Offering—All of the preferred and
40,000 shares of the common will be offered publicly. Of
the

remaining

purchase warrants.
Underwriter
Van
Alstyne, Noel & Co. Offering—The 300,000 shares are
—

issued and outstanding and
being sold for the account
of certain stockholders.
Company has also issued 55,000
stock purchase warrants to the
selling stockholders at
10 cents a share
entitling them to

purchase up to Aug. 1,
1949, common stock of the company at $11 a share. Price
by amendment. Offering temporarily postponed.

common,

9,998 shares will be issued to

Charles J. Van Ruska in payment for promotional serv¬
ices and a 99-year lease on real estate assigned to the
company,

iCorbett
men

Glencair Mining Co. Ltd., Toronto, Can.

develop-

ment and exploitation of a license
agreement between
A. M. Ross-Smith and General
Aniline & Chemical Corp.
'to print fabrics by certain
process known as "Ozara"
-in the development of which
process General Aniline
'had been previously
engaged.
'

Harman

$10 each, of the Stuyvesant Insurance Co., a subsidiary. ; eral operating capital.
'V".'■
/' -■ ;
;
^
The balance will be added to general funds. Business—
Financing accounts receivable and making loans to busi¬ ; 1
Health Institute, Inc., Hot Springs, N. Mex.
1
nesses/'
*
Dec. 16, filed 50,000 shares ($10 par) 5J/2% cumulative

reserved

Under¬

ceeds—Will be applied to the purchase and installation
of machinery and equipment and to the

27 filed

common.

use
approximately $402,000 toward
manufacturing plant in Chicago; bal¬
working capital. Offering date indefinite.

iitrWjt!,'"-'

) K

ceeds—Shares

;

proposed

for

ance

:'/W

June

Colo*

Co., Chicago
($1 par)

It also will

the purchase of

Under-

$2.50 per
unit.; The. balance of 36,000 common were
disposed of
as follows:
(1) 20,000 were sold Dec. 26, 1946 to Richard
M. Locke, Vice-President at
50 per share as an invest¬
ment; (2) 10,000 were purchased Dec. 26, 1946 by Gillen
*& Co. at 50 per share as an
investment; (3) 6,000 shares

dends.

the total

Offering date indefinite.

Instrument

writer: Paul H. Davies &
Co., Chicago. Price by amend¬
ment.
Proceeds—Net proceeds will be used to redeem
Its outstanding 6% cumulative
preferred stock at an
estimated cost of $213,258, exclusive of accrued divi¬

selling 350,000 shares and two stockholders,

and working

Transport'n Co., Jacksonville, Fla.

Aug. 8 filed 80,000 shares

tional storage facilities, research and
development work

Offering tem¬

shares of common stock (par $1>.
Underwriters—Blair & Co. Offering—Stock is being of¬
fered to present shareholders at
$3 per share. Holders
of approximately 200,000 shares have
agreed to waive
their preemptive rights.
Offering date indefinite.
i

| Roland E. Fulmer and Louis H. Newkirk, Jr., are selling
the remaining 100,000 shares.
Price—$6 a share. Proceeds
•?—For purchase of sweet potatoes, plant
expansion, addi¬

Boise, Ida.

Gulf Atlantic

(1/16)

common.

loan.

f Jan. 17 filed 270,000

Aug. 30 filed 450,000 shares (1Q0 par)

notes, discharge

pay

Hammond

|writer—Newkirk & Banks, Inc. Offering—Of

(letter of notification) 3,000 shares of 4Vz%
pre- ■
ferred ($100 par).
Price—$100 a share. Underwriter—;
Richard, Meade Dqnlevy Childs, Boise, Idaho. Proceeds

each

'•

New York

Proceeds—Approximately
$1,060,950 for redemption of class A preferred; balance
capital, etc. Dividend rate and
price by amendment.Offerings temporarily postponed.

Price—$11.50

preferred,

porarily postponed.

for expansion, working

(letter of notification) 40,000 shares A stock
^(par $2.45) and 76,000 shares common stock (par 50).
Offering—40,000 shares A and 40,000 shares common to

offer to holders of Class A
preferred on share for share
basis plus a cash adjustment.

•

a share.
Proceeds —- Shares are being sold
by stock- '
holders. Offering date indefinite..
•;> '
••
v

20,000 shares of common; and from Fred P. Murphy
Graham, Jr., 100,000 shares of issued and out¬
standing common. Prices, preferred $100 a share;
com[mon $14 a share.. Proceeds—To
retire $6 cumulative
and J. C.

Inc., Philadelphia

100,000 shares of $1.25 cumulative con¬
vertible preferred stock (par
$25). Underwriter—Blyth
& Co., Inc. Offering—Underwriters are
making exchange

one

$4.25 preferred to purchase at any time 64,750
common stock at $16 a share at the ratio of
3^
shares for each preferred share
held; and 120,000 shares of $1 par common stock.
Underwriters—H.
M. Byllesby and
Co., Inc.
Offering—Underwriters to
purchase from the company 18,500 shares of preferred
common

July 29 filed

Era Manufacturing Co., Chicago
Sept 5 filed 105,000 shares common stock
(par: $1).
Underwriter—Straus & Blosser, Chicago.

Oct. 21

the

shares of

Foster & Kleiser Co., San Francisco

ierihg temporarily postponed.

July 29 filed 110,000 shares ($1 par) common stock, all
outstanding. Underwriters—Cohu & Torrey. Price by
amendment Offering date indefinite.

capacity,

lines of products and
expand the business. The
common stock and the preshares will be sold by present
stockholders. Of-

units

Aug. 5 filed 60,000 shares ($15 par) cumulative preferred
Underwriters—Eastman, Dillon & Co. Price by
amendment.
Proceeds—To be used to redeem 15-year
3%% sinking fund debentures, due 1959; and $2.50 cum¬
ulative preferred at $53 a share.
Balance will be added
to working capital.
Temporarily postponed.
;
v...;;.,;

new

;remaining 100,000 shares of

Food Fair Stores,

stock.

converti¬

•Noel & Co. Proceeds—Corporation will
receive the pro¬
ceeds from the issuance of
50,000 shares of the common
.stock which will be used to increase
productive

Grolier Society, Inc., New York
July 29 filed 18,500 shares at $4.25 cumulative preferred
stock ($100 par),
with non-detachable common stock
purchase warrants entitling registered holders of shares

and

...

Empire Millwork Corp., New York
Aug. 28 filed 50,000 shares of $1.25 cumulative

be offered

Md.

Offering indefinitely postponed.

funds, will be used for production of educational

Finance Co. of America at
Baltimore,

modernization and improvement of the
manufacturing
Riant- and 'machinery' and J equipment; EBusiness—Beer
manufacturer,
f
•>■;;#

—

modernization program.

notification) 750 shares of class A ($100
par) common, (non-voting). Price—$310 a share. Under¬
writer—The unsubscribed portion of the
offering, if any,
is being
underwritten by Louis Eliasberg, President at
$310 a share. Expansion of business.

5% .non-cumulative
preferred. Underwriters—None. Offering—To be offered
at par to customers, officers and
employees of the com¬
pany. Proceeds —- For corporated purposes
including

Farbon

Sept. 3

Dec. 23 (letter of

X)ec. 31 filed 5,000 shares
($100 par)

{to retire debentures

Griggs, Cooper & Co., St. Paul, Minn.
(letter of notification) 12,000 shares ($1 par)
common.
Underwriters—Kalman & Co., Inc., St. Paul.
Price—$25 a share. Proceeds
For improvement arid

Brewery, Inc., Brooklyn, N. Y.„;.

Falk Mercantile
Co., Ltd.,

convertible into

films.

investment,
Carl M. Loeb,

stock,
(par

initially

option. The

group for

approximating
$100,000 and to provide funds for expansion program in
fields of groceries,
produce, meat, frozen foods, house¬
hold and electrical appliances »■ and
related products.
Business—Wholesale dealer, in groceries and household
'and allied products; ; **
^
-

stock

other

•V Eastern Cooperative Wholesale
Inc., New York
Dec. 30 filed 20,000 shares
($25 par) 14% cumulative
dividend non-voting preferred stock; Series
B.:-Under¬
writers—None! Offering—Shares will be offered
directly ;
To Stockholders and those
interested in the co-operative
movement.. Price—$25 a share. Proceeds—To
retire out¬
standing debt and current liabilities (

common

stock

one share of common stock.
Proceeds—$20i,000 for retirement of 2,010 shares
($100 par) preferred
stock at $100 a share; remaining
proceeds, together with

(letter of notification) 99,000 shares of common
and purchase warrants
covering 50,000 shares of com-'
mon. Offering—Price
$3 a common share and five cents
a
warrant.Underwriter—Amos Treat & Co., New York.
For machinery, plant renovation
and working capital.
Offering date indefinite.

ble preferred

common

stock and

Oct 11

Edelbrew

class

Stock. Underwriters—Herrick, WadCo., Inc., New York. Offering—To be offered
publicly at $8.10 a unit consisting of one share of class A

dell

capital.

Durasite Corp.?

shares of

of whom are
represented by
Rhoades & Co. and certain of whom are
represented by
Roberts & Co. For payment of
outstanding liabilities, for
purchase of equipment and supplies and for
working

are

City, Nev.
Sept. 3 filed 500,000 shares ($5 par) capital stock. Under¬
writing—There will be no underwriting but Everett N.
Crosby, President and James Manoil, Treasurer, will act
as selling agents.
Price—$5 a sha^e. Proceeds—For re¬
financing of company and for working capital and funds
for development and construction
program.

exercisable one year after present
offering.

$1,000

securities

D^c.

Grand Canyon-Boulder Dam Tours, Inc., Bouldar

June 25, filed 100,000 shares ($5
par) class A stock and

(letter of notification)

of common,

;•

($100 par)

Films Inc., New York

$100,000 of 5-year 4%
sinking fund debentures, due 1951;
$100,000 of ?y2 year
4% sinking fund
debentures, .due .1954; 10,000 shares
($9.50 par) 5% cumulative
preferred; 30,000 shares (150
par) common, and options for purchase of
25,000 shares

ferred

(letter of notification) ,2,950 shares

Dispensers Inc., Brooklyn, N. Y.

add

Alstyne Noel & Co. Price by amendment. Proceeds-*
To selling stockholders.
Offering temporarily postponed.

Inc., Pomona, Calif.

•.

—

who will receive
Boston.
For working

/•

Paper Mills,

ble preferred stock series A
($20 par) and 150,000 shares

(10c par) common, all issued and outstanding and being
sold by eight selling stockholders.
Underwriters—Van

—

holders

Dec.

Glen Industries
Inc., Milwaukee, Wis.
July 31 filed 50,000 shares of $1.25 cumulative converti¬

5% cumulative preferred. Price—$100 a share. Under¬
writer—Pacific Co. of California, Los Angeles, will sell
1,000 shares on an agency basis. To construct and equip
additional paper mill.
v •
t

•

Detroit

Fernstrom

Dec.

are

ferred

and

share each will be issued to Tom A.
M. Van Sant for services. All three

one

Emil

officers

share and

of the

$10

Price—$10.15 a pre¬
share. Proceeds—Pro¬

company.
common

ceeds will be used to build

and

equip hotel and health
facilities and to acquire a mineral water supply. Business
—Operation of health resort.
:V
>
Helene Curtis
Dec.

filed

Industries, Inc., Chicago

60,000 shares

($5 par) 50-cent cumulative
Series A, and 120,000 shares ($1
par) common, reserved for conversion of preferred.
Underwriter—Simons, Linburn & Co. Offering—Com¬
pany will offer 40,000 shares of preferred to employees
at $9.50 a share and 20,000 shares to the public at $10 a
share.
Proceeds—To be added to general corporate
funds.
Business—Beauty supplies.
convertible preferred,

(Continued

on page

44)

page

receive warrants for purchase of

43)

Hollywood Colorfilm Corp., Burbank, Calif.

•

.v.- ,*'] •'*

■

'•

•

-V'; 1 £.•

Co., New York.
indebtedness, purchase

facilities.

Dec. 3 (leter of notification) 54,350 shares of cum. con v.
preferred and 50,000 common stock purchase warrants.

Michigan Gas & Elec. Co., Ashland, Wis.
due 1976; 14,000 shares ($100 par)
stock and 120,000 shares ($10 par)

III.

derwriters—To

body & Co.; The First Boston Corp.; Harris. Hall & Co.

(Inc.); Merrill Lynch, Pierce, Fenner & Beane, and Ira
Haupt & Co.
Offering—New preferred will be offered
on a share for share
exchange basis to holders of its

' '

♦

)

•'

t-y'y

redeem

Telephone Co., Bristol, Tenn.

underwriters.

Unsubscribed shares will

will

Proceeds—Proceeds

improvements.

and

Dec. 3 filed

1,000,000 shareg (no par) common.
Price—70 cents

Under¬

Sept.

Monroe Sales
Nov.

and

Gearhart

preferred

and

Trades

Underwriter—

additional

(letter • of notification) 1,000 shares i($l par)
being offered on behalf of Arthur H. Harrison,
Shares being issued to Harrison upon exer¬
cise of warrant for 1,000 shares at price of ll/s per share.
Offering price to public, 9% but not to exceed market.
agent.

(

Mada
7

Yellowknife Gold Mines, Ltd., Toronto

filed

250.000

($100 par)

Price—$100 a preferred share and 50 cents a
share. No underwriting. To carry on business

corporation

factory representative and dealer.

Co.

and

Smith

stock (no par).

Barney &

& Co., Inc.; Kuhn, Loeb
Co. (jointly); Harriman,

Ripley & Co.; The First Boston Corp. Offering—Shares,
are owned
by Standard Gas & Electric Co. and con¬
stitute 56.39% of the company's outstanding common.
Sale Postponed—Standard Gas & Electric Co. asked for
bids for the purchase of the stock on Sept. 4, but the
sale has been temporarily postponed.

Murphy

Co., McKeesport,; Pa.

(G. C.)

$1).

Underwriter—Smith, Barney & Co.
Price by amend¬
ment.
Proceeds—Redemption of outstanding 4%% pre¬
ferred stock at

capital stock 'par 40e^
Undewriters—Mark Daniels & Co. Offering—Stock will
be offered publicly in the U. S. at 40c a share (Cana¬

dian money). Proceeds—Proceeds, estimated at $75,000,
will be used in operation of the company.
) -, ,' •. ,/£

Sept. 27 filed

$109

postponed.

share plus dividends. Indefinitely

Public Service

Co., Preque Isle, Me.

filed

150,000 shares ($10 par) capital stock.
be determined through competitive
bidding.
Probable bidders include The ? First Boston
Corp.; Kidder, Peabody & Co., and Blyth & Co., Inc.
..(jointly); Harriman Ripley & Co; Coffin & Burr and
Underwriters—To

are

being sold by Consolidated Electric and Gas

Co., parent of Maine Public Service, in compliance with
geographic integration provisions of the Public Utility
Holding Company Act.
J
V

Managed Funds Inc., St. Louis, Mo.

*Dec.
.

3 filed 2,300,000 shares (lc par) capital stock.
Underwriter—Slayton and Co., Inc., St. Louis.
Price—

share. Proceeds—For investment.

Manning;, Maxwell & Moore,
Nov.

filed

160,000

Inc.

of $12.50 par common.
Weeks, New York.
Price
by amendment.
Proceeds—Proceeds will be used to
repay $1,000,000 in bank loans with the balance going
into general funds.
Offering temporarily postponed.
Underwriter—Hornblower &

(letter of notification) $75,000 5% convertible
$1,000), $25,000 5% convertible notes (par
$500) and 22,500 warrants for purchase of common. The
notes will be sold at face amount and purchasers of each
$1,000 note also will receive warrants for purchase of
140 shares of common and purchasers each $500 note will
notes

(par

and the remaining

300,000

by Bear, Stearns & Co. Price—By
amendment
Proceeds—The company will use its pro¬
ceeds to redeem old preferred stock.

Engraving & Mfg. Co., La Crosse,

Wis#

Aug. 29 filed 70,000 shares ($2 par) common stock.
Underwriter—Cruttenden & Co.
Offering—All shares
are issued and outstanding and being sold for the account

■

Proceeds—To

Price—$16 a share.

present holders.

temporarily delayed.

selling stockholders. Offering
^ ' "*

"«-'

V J

I V

^ *

1$ tv'U' '

1 ' *

Northern Indiana Public Service Co.
Aug. 28 filed maximum of 384,016 shares of cdmmoa
stock. Underwriters by amendment as shares will bo
offered under competitive bidding. Probable bidders in¬
clude Blyth & Co., Inc.; The First Boston Corp.; Stono
& Webster Securities Corp., and Harriman Ripley &
Co., Inc. (jointly). Of the shares registered, 182,667 are
being sold by Midland Realization Co.; 54,426 by Mid¬
land Utilities Co., and 146,923 by Middle West Corp.,
,
Nugent's National Stores, Inc.,

New York

■

85,000 shares ($1 par) common stock.
Underwriters—Newburger & Hano, and Kobbe, Gearhart
21

filed

-.Price, $6.75 a share. Proceeds—Net pro¬
from 62,000 shares, estimated at
$350,200, will be applied as follows: About $111,300 for
retirement of outstanding preferred stock; $41,649 to
&: Co./

Inc.

to the company

ceeds

purchase 100% of the stock of two affiliates, and bal¬
$197,000 for other corporate purposes. The pro¬
from the other 3,000 shares will go to selling
stockholders. Offering temporarily postponed.
Oklahoma Gas and Electric Co.

and

Lee

Higginson

Corp.,

Chicago. Price—By

amend¬

ment. Proceeds—The stock is issued and outstanding and
is

White, Weld & Co.; Lehman

being
be

sold

New

supplied

shareholders.
by

of the

Names

amendment.

;

ceeds to prepay

balance

shares
—The

the

England Gas and Electric Association

common

stock which

were

to be received

company

shares (par
$100) and 1,246,011 common shares (par $8). Under the
proposed plan consolidated funded debt would be prac¬
tically unchanged from that provided in original plan,
the Association to issue $22,425,000 coll.. trust bonds.
bonds

preferred stock may be sold, subject
to an exchange offer, to the holders of present deben¬
tures on a par for par basis. Present preferred would

These

and

Carbon Co. Inc.

(1/15)

140,900 shares ($5 par) common. The
are being sold by three stockholders. Underwriter
First Boston Corp., New York. Price—By amend-

Sept.

filed

ment.

Orange-Crush de Cuba, S. A.

(1/2-15).

($1 par) common and 40,000
warrants. Underwriter—Floyd D. Cerf Co., Inc., Chicago.
Offering—Price $4.75 a share. CProceeds—Of the total
company is selling 37,500 shares and stockholders are
selling 87,500 shares. The company will use its proceeds
for equipment and working capital.
July 22 filed 125,000 shares

Aug. 13 were withdrawn Aug. 12.
An alternate plan filed Nov. 25 with the SEC provides

Proceeds—Oklahoma will use its net pro¬
part of its outstanding serial notes. The
will be used for property additions.

tive bidding.

selling

July 11 filed $22,500,000 20-year collateral trust sinking
fund Series A bonds, and a maximum of 1,568,980 com¬
mon
shares ($5 par).
Underwriters—By amendment.
Bidders may include Halsey, Stuart & Co. Inc. (bonds
only), Bear, Stearns & Co. (stock only), First Boston
Corp., White, Weld&Co.-Kidder, Peabody & Co. (jointly).
Offering—Bonds and common stock are being offered in
connection with
a
compromise recapitalization plan
approved by the SEC, on June 24, 1948, which among
other things provides for the elimination of all out¬
standing debentures and preferred and common stocks,
and for the issuance of $22,500,000 of bonds and 2,300,000
of new common shares. Bids for the purchase of the
bonds and the

Brothers and Blyth & Co.,

(jointly); Harriman, Ripley & Co.; Kuhn, Loeb &
Co., and Smith, Barney & Co., (jointly). -Offering—Of
the total 750,000 shares will be sold by Standard Gas &
Electric Co:, parent and 140,000 shares will be sold by
the company.
Standard's shares comprise its entire
holdings in Oklahoma Gas common. Price—By competi¬

Inc.

stockholders and the number of shares to be sold by each
will

890,000 shares ($20 par) common. Under¬
writers—To
be determined by competitive bidding.
Probable bidders will include The First Boston Corp<;
Dec. 23 filed

Old Town Ribbon &

unspecified number ($2.50 par) com¬
shares. Underwriters—First Boston Corp., New York,
an

for the issue of 77,625 convertible preferred

Markiey Corp., Meriden, Conn.
Dec.

is selling 110,000 shares

pany

shares are being sold

National Aluminate Corp., Chicago

fMerrill Lynch, Pierce, Fenner & Beane. Proceeds—The
shares

be sold to

mon

Maine

June

issued

share for share basis. Shares not
exchange and all of the common shares will
underwriters.
Of the total common, the c0^"*

ance

June 13 filed 250,000 shares of common stock (par

June

Proceeds—
/

the

Probable bidders include Blyth
v

New York.

Underwriters—Allen & Co. will act

250 shares

holders or
6% cumu¬

preferred will be offered in exchange to
company's 7% cumulative preferred and

new

June

Underwriters—To be determined by competitive bidding.

common

/Go to the selling stockholder.

(letter of notification)

June 6 filed 140,614 shares of common

Liberty fabrics,of New York, Inc., New York

Dec.

($100 par) cumulative pre¬

410,000 shares ($3 par) common. . Under¬
by amendment. Offering—The

ceeds

working

'!£

....

Proceeds

share.

Corp., Philadelphia

Mountain States Power Co.

publication called

new

Drovide

capital. Offering date indefinite..•

common

of the

Co., Inc., New York. Proceeds—To replace

working capital used to promote
Fashion

share.

common.

common

mom

6% cumulative preferred and 100,000 shares, (500 par)

(1/6-15)

(letter of notification)

and

writers—To be supplied

preferred to F. H. McGraw & Co. and subcontrac¬
Business-r-Operation of race track,

tors.

150,000 shares of (10c
and 57,000 shares ($5 par) 6% cumulative
convertible preferred, Series A. Price—10 cents a com-

par)

Price—$4

$50 par 4% non-cumulative convertible preferred held
Monmouth Corp.
A balance due on construction
paid by distribution of 14,636 shares of the

new

share,
underwriting discount will amount to 21 cents a
share..
Proceeds—For exploration and development of
paining property and for administrative expenses.
:.

Leader Enterprises, Inc., New York

purchased by the Monmouth

work will be

the

Club, Oceanport, N. J.

—Part of the funds will be used to redeem. 25,200 shares
of

Kiwago Gold Mines Ltd., Toronto, Canada
writer—Jack Kahn, New York.

total of 315,000 will be

shares for each share held.

off $250,000 bank loan and for property addi¬

tions

filed 26,000 shares

Dec.

Northern

Corp.,' formed last May to finance construction of the
racing plant.
Offering—Company will offer present
common stockholders the right to purchase 387,500 addi¬
tional common shares at $4 each in the ratio of 1V4

^common stockholders at $10 a share in the ratio of one
share for each share held.

Northwestern Public Service Co.

It also will

($50 par) 5% cumulative con¬
vertible preferred and 633,500 shares (lc par) common.
Underwriter—Unsubscribed shares and additional shares

Offering—The shares will be offered for subscription to

at 101.2 and interest.

Monmouth Park jockey

19 filed 47,500 shares ($10 par) common.
Under¬
writers—Headed by Alex. Brown & Sons, Baltimore, Md.

together

$28,000,000,

105 and accrued dividends all unexchanged

Dec. 5 filed 16,000 shares

Dec.

sold

proceeds

$6,000,000 contribution from NY PA NJ Utilities
Co., parent, will be used for redemption of $13,000,000
of 3%% bonds, due 1964, and 120,000 shares '$100 par)
5-10% cumulative serial preferred and to finance new
constructions.
•
'

with

shares of prior lien and preferred stocks.

new

Proceeds—Estimated

change will be used to redeem $375,000 3Mt% serial de¬

bentures, due 1951,

used to pay

and Smith, Barney
and Glore, Forgan &
(jointly) and Halsey, Stuart & Co. Inc. (bonds only).

Probable bidders include Blyth & Co.

lative preferred, on a

$3,500,000 3%% series A first mortgage bonds, due 1972,
at 106.75 and interest.
Net proceeds from sale of com¬
mon and from shares of new preferred not issued in ex¬

Offering date indefinite.

bonds, due 1976,

150,000 shares of ($100 par) cumulative preferred.
Underwriters—To be determined by competitive bidding.

ferred

prior

Inc., New York, is selling 22,774 shares. Proceeds
—Michigan will use net proceeds from bonds to redeem

Aug, 28 filed 140,000 shares of common stock (par $1).
Underwriter—Otis & Co.
Offering—Price $10 per share.
'Proceeds—Selling stockholders will receive proceeds.

Inter-Mountain

Oct 30 filed $13,000,000 first mortgage

& Co.

International Dress Co., Inc., New York

Ithaca

Corp.,

Gas

and

lien, $6 no-par prior lien, 6%
preferred and $6 (no par) preferred. . Of the common
stock being registered, company is selling 40,000 shares,
Middle West is selling 57,226 shares and Halsey, Stuart
7%

outstanding

Company has asked the SEC to defer action on its fi¬
nancing program because of present market conditions.
<

by competitive bidding,

determined

Probable bidders include Blyth & Co., Inc.; Kidder, Pea-

17, filed 200,000 shares ($50 par) cumulative pre¬
ferred stock and 966,870 shares (no par) common stock.
Underwriters—By competitive bidding. Probable bid¬
ders include Blyth & Co., Inc. and Mellon Securities
Corp. (joimly) and Morgan Stanley & Co. and W. E.
Hutton & Co.. (jointly). Proceeds—Net proceeds from the
sale of preferred will be used to reimburse the com¬
pany's treasury for construction expenditures. Net pro¬
ceeds from the sale of common will be applied for re¬
demption of 5% cumulative convertible preferred stock
not
converted into common prior to the redemption
date.
The
balance will be added to treasury funds.

Vu* '•

Electric

State

Co.

first mortgage bonds,
cumulative preferred
common stoc-K.
Un¬

June 24 filed $3,500,000 of series A

June

}

York

& Co. (jointly); First Boston Corp.

Illinois Power Co., Decatur,

St. Louis.

Hearings on the

SEC for Dec. 19.

alternate plan are scheduled by the

$31 a share. Underwriter—Smith-Moore & Co.,

preferred share and 2 cents a warrant.
Underwriter—Amos Treat & Co., New York.
To exer¬
cise options for purchase of five variety stores, to retire
notes and for working capital.

Price—$5.50

common

new

will be left to the SEC and the court.

New

(letter of notification) 1,200 shares (no par)
common, 50% on behalf of George A. Meyer Finance Co.,
St. Louis; and 50% on behalf of Robert L. Blanke, Jr.
and Marian Blanke, both of University City, Mo. Price—

with

shares at $9 per
share. The present plan does not affect the status 01
original plan, but determination as to which will be used

Meyer-Blanke Co., St. Louis, Mo.
Nov.

-y\

Hy-Grade Supply Co., Oklahoma City

70 shares of common.
8,500 shares of commdn
warrant. Underwriter—Amos

For payment of certain current
equipment and1 improve plant
'

Treat &

119,500 shares of ($1 par)
capital. Price, $3 a share. No underwriting contract, how¬
ever, 55,000 shares to be issued to or through H. R. O'Neil
of Buckley Bros., Los Angeles, will be sold by one or
more of the following firms: Buckley Bros.; Durand &
Co., Tucson, Ariz.; J. Earle May & Co., Palo Alto, Calif.
j

rights to subscribe to 5

will be sold at five cents a

Oct. 16 (letter of notification)

,ii1#

receive for each share held 8 shares of new common

Other warrants for purchase of

(Continued from

1947.

Thursday, January 2,

THE COMMERCIAL & FINANCIAL CHRONICLE

•

OvaS

Dec.

Roster, Inc., Indianapolis,

(letter of notification)

Ind.

$275,000 of 4%% first

mortgage bonds. Price—$1,000 per unit.
Underwriter—
The First Trust Co. of Lincoln, Neb. Proceeds—To com¬

plete payment for

land, buildings and equipment.

Pacific Power & Light Co.,

Portland, Ore.

July 10 filed 100,000 shares ($100 par) preferred stock.
Underwriters—By amendment. Probable bidders include

Blyth & Co., Inc., White, Weld

& Co. and Smith, Barney &

(jointly); The First Boston Corp., W. C. Langley & Co.;
Offering—Company proposes to
Issue the 100,000 shares of new preferred for the pur¬

Co.

Harriman Ripley & Co.

pose of refinancing at a lower dividend rate the 67,009
outstanding preferred shares of Pacific and the 47,800

preferred shares of Northern. Electric Co., in connection
with the proposed merger of Northwestern into Pacific,
In connection with the merger, the outstanding preferred
stocks of Pacific and Northwestern will be exchanged

[Volume 165

Number 4556

THE COMMERCIAL & FINANCIAL
CHRONICLE

share for share, with cash adjustments, for the new pre¬
ferred stock of Pacific, the surviving corporation. Offer¬

ing price—To be supplied by amendment.
Blade

Pal

Realmont
''

Inc., New York

outstanding and

are

poned.

all

salaried

'777

Palmetto

Fibre

Corp., Washington, D.

;

filed 4,000,000 shares (100 par) preference
Underwriting—Tellier & Co., New York. Price

50 cents

share. Proceeds—The company will use esti¬

mated net proceeds of

$1,473,000 for purchase of a new
factory near Punta Gorda, Florida, at a cost of about
$951,928. It will set aside $150,000 for research and de¬
velopment purposes and the balance will be used as
operating capital.

filed

writer—Van

50,000 shares

($1

Alstyne, Noel &

amendment.

construction

inated fabrics.

artificial

/X/

•

leather

Oct.

share.

and a other

,1'A-

($50 par)

holders. Indefinitely postponed.

convertible

•

pre¬

[■—To increase capital for expansion of proposed
"route, connecting jPeru aiid-Montreal, Can.,

house

Republic Pictures Corp., New Ybrk

customers at market but at not exceeding $102 per share
Proceeds—Will be used for working capital.

Dec. 26 filed 50,000 shares

(par $7.50) cumulative con¬
vertible prior preferred $2 dividend stock.
Underwriter,:
—G. Brashears & Co., Los Angeles.
Price by amend¬
ment.
Proceeds—23,481 shares are being issued by com¬
pany and proceeds will be used in connection with recent;
purchase of four Chi Chi restaurants and cocktail
lounges in Long Beach, Riverside, Palm Springs and San,
Diego and for working capital.
-• \
/*/ '■'

Inc.,

New York

Dec. 9

Airways, Incw, San Antonio, Texas
filed 500,000 shares ($10 par) common and options

Herrick, Waddell

common

Co.,

(par 50c).

Inc.

offering the preferred stock to
common

the

public,

while

is being sold by certain stockholders.

Preferred, $10

share; common, $4

share.

for

pay

working capital.
Solar

filed

Underwriter—Robert

Price—500

company.

shares
B.
a

(500

Soden,
share.

Prices-

Proceeds-

capital stock.

Montreal,

director

Proceeds—For explora¬

tion and development of mining
•

par)

property./

;

Queen City Fire Insurance Co., Sioux Falls, S. D.

Dec. 23
common.

(letter of notification) 1,500 shares of $150
Price—$150

share.

No underwriters.

being offered for subscription to stockholders.
subscribed

will

Casualty Co. of St. Paul,
pany's stock.

purchased

owner

The

un¬

Anchor

of 94.4% of the

For additional working capital.

par

Any

45,000 shares
working capital

Co., Chicago (1/15)

'"■.■'■•7

filed

$50,000,000 of debentures, consisting of
$15,000,000 of 1-10 year serials and
$35,000,000 of 25-year
debentures.
Underwriters—Salomon Bros. &
Hutzler,
Price—Serial debentures, which will be due

which

com¬

ceeds

are

also

each three shares held.

supplied by amendment.

The subscription! price will be
Unsubscribed shares will be

sold

publicly or privately through brokers or dealers at
price, after customary brokerage commissions, of
than the offering price to stockholders.
Price
by amendment.. Proceeds—Proceeds will be used to re^
duce outstanding bank
loans, to finance additional in¬
a

net

not less

vestments in plant

working capital.

;

facilities and to provide

additional

Business—Holding

company of sub¬
sidiaries engaged in meat packing and allied food
lines.

Taylor-Graves, Inc., Saybrook, Conn.\ /A//
July 12 (letter of

notification) 44,300 shares of ($5 par/
cumulative convertible preferfed -stock and
44,300 share#
common stock (par 50c).
Offering—Price $6 a share for
preferred and 75 cents a share for common. Underwriter
—Amos Treat & Co. * Proceeds—For
payment of notes,
mortgages and for general corporate purposes.
temporarily postponed.

Offering

XXV7y7/y;,

' 7

Corp., New York

outstanding
by them. They are also selling to HallCo., for $1,500, plus $360 as a contribution,
toward the expenses of
issuance, options to purchase an
additional 18,000 shares of the issued and

outstanding

common.
Proceeds—Net proceeds for the sale of com¬
pany's 75,000 shares will be used for
increasing working
capital, with a view to entering the Frequency Modula¬

into

used

for

common

stock.

additional

tion and "Television fields at

advantageous time. Of¬

fering/date postponed. yyX/

Such pro¬
.

manufacturing

facilities in the amount of $600,000; for additional inven¬
tory amounting to $400,000, and for additional
working
capital. Offering temporarily postponed.
;

XX'

/Dec. 6 filed deposit certificates for
500,000 shares, par
value 15 Argentine gold
pesos'a share.
Underwriters—
None.
Offering—The shares will be offered for sub¬
scription to stockholders at the rate of one share for

garten &

not converted

International Co. Ltd., Buenos
Aires,

Argentine

common owned

Manufacturing Corp.

will

Swift

share.
Options—Selling stockholders are also selling to
the underwriters at 7 cents
per option warrant options to
purchase 18,000 shares of the issued and

Co., Price by amendment.
Proceeds—Net proceeds will be applied for the
redemp¬
tion of outstanding series A convertible
preferred stock

the

bank loans, and other corporate purposes.

100,000

common
stock (par 50
; Underwriters—Hirsch & Co.
Offering—Com¬
is offering 75,000 of the shares registered. Eleven
stockholders are selling 135,000 issued and
outstanding
shares, for their own account.
Offering—Price $6.75 •

writers—Van Alstyne, Noel &

Quebec Gold Rocks Exploration Ltd., Montreal
Nov.

applied

pany

June 14 filed 80,000 shares of $1.12% cumulative con¬
vertible preferred stotik. series A
(par $20).
Under¬

Proceeds from sale of preferred will be used to purchase;

equipment,

Proceeds—From
be

cents).

Underwriting— 7

None.
Offering—The common shares are to be offered
publicly. The options for purchase of the 175,813 shares
of common are to be offered to
original subscribers of
the company's stock.
It also will issue options to em¬
ployees for purchase of 69,875 shares of common. Price—7
$10 a share. Proceeds—For purchase of equipment and

7
7

Underwriter—

Offering—Company

7*7

Aug. 1 filed 210,000 shares of

75,000 shares of

will

Tele-Tone Radio

Slick

Aug. 27 filed 60,000 shares of preferred stock ($10 par)
and

Swift &

7";-

Plastic Molded Arts,

share.

company

initially. /Offering date indefinite.

> |/;7\

Shatterproof Glass Corp.,. Detroit, Mich,,

to purchase 175,813 shares of common.

1, 1948 to 1957 inclusive, will be
publicly at 100. The offering price of the 25-year
debentures, which will be due 1972, will be supplied
by

.,7

Oct. 28 filed. 280,000 shares ($1 par) common.
Under*
M writing—None.
To be sold through brokers on over,#
} the-counter market.
Offering—The shares are issued
Philadelphia Dairy Products Co., Inc.
and outstanding and are being sold
by William B. Chase,
Dec. 26 (letter of notification) 2,907 shares, of first pre¬
C President, and members of his
family or trusts created
ferred
stock. Underwriters—Stock will be sold out-:
by Chase or his wife. Price—At market.
right to Stroud & Co;, Inc., Butcher & Sherrerd, and ;
Glover & MacGregor, Inc. who will sell same to their

■1

$1,500,000 each Jan.

building.

Pig'n Whistle Corp., San Francisco

7/'

offered

Proceeds—For payment

of loans and to replace
working capital expended in purchase of building from

•

/ New York.

•••

sold

an underlying book value of
$2,458,224 as of last '7
offered for subscription to stockholders of record
Sept.
Sept. 30. At a meeting of stockholders, Dec. 23 company ;
5 to the extent of one share for each five held.
Issue will •"■■■
'authorized an increase in common stock from 1,000,000
not be underwritten.
7
to 2,000,000 shares and also authorized the issuance of the
'X/'X X-V?-/y^X'/X^
-77/,
'<■*:,-W*
*' *L,
i :s k
'*
present offering in exchange for the Taylor stock. Ap¬
Santa Cruz (Calif.)
Sky Park Airport, Inc.
proximately 70.9% of the common stock is held under
Dec. 6 (letter of
notification) 53,000 shares ($1 par)
a voting trust agreement of Aug.
15, 1945, which it is
7 common.
Of the total 31,000 shares will be offered
pubexpected will be terminated upon the acquisition of the/
;/ licly at $1 a share, 16,000 shares will be transferred- to
Taylor stock. Business—Production of oil burners.
Alex. Wilson and Wayne Voigts for their interest in
Santa Cruz Flying Service, which is a
Pilaris Tire & Rubber Co., Newark, O.
flying field and
Sept. 27 filed 100,000 shares ($20 par) cumulative con¬ $ airport, and 6,000 shares would be issued in cancellation
of partnership indebtedness.
No underwriting.
vertible preferred. Underwriter-—Van Alstyne,;, Noel &
For
operation of airport business.
Co. and G. L. Ohrstrom & Co., New York. Price—$20

complete construction of

195,000 shares common stock <par $1).
Underwriter—C. K. Pistell & Co./ Inc.
Offering—Com¬
is selling 45,000 shares, and
eight selling stock¬
holders are disposing of the
remaining 150,000 shares.

Dec.

Registration originally filed July 31 covered 184,821
shares of $1 cumulative convertible preferred
($10 par)
and 277,231 shares (50c par) common
stock, with Sterling,
Grace & Co. as underwriters.
Company has decided to
issue 454,465 shares of common stock
only, which will be

with

RFC and to

7XT77<.

pany

Price—$10.50

will be offered by the
company to the public.
Price—;
$30 a common share and $10 a preferred share. Proceeds

...

Stamford, Conn.

912,464 shares ($2 par) common. Under¬
writers—None. Offering—Shares will be offered in ex-/
change for entire outstanding capital stock of Taylor Re¬
fining Co., consisting of 8,946 shares (no par) common

7XXv:X/;X

Co., Trenton, N. J.

amendment.
Proceeds—Proceeds will be utilized for re¬
X—The proceeds will be used to augment
capital by an
tirement of outstanding serial and
term
additional $300,000 and surplus by an additional
debentures
$800,000 7
amounting to $18,750,000, with the balance to be used
air
for business expansion purposes.
for plant
;
rehabilitation, modernization and expansion.

30 filed

share.

Aug. 28 filed

for each share owned and 1% shares of new
preferred
each share of common held./ Unsubscribed shares

trailers..

Swern

for

and one share of common at $15 a unit.
The company
also may offer the shares other than
by unit at a price
"of $7 a preferred share and $1 a common share. Proceeds

Superior Industries,

Inc., Goshen, Ind.
/
Dec. 23 (letter of
notification) 2,000 shares ($100 par)
,5% preferred.
Price—$100 a share. No underwriting.
For purchase of
manufacturing plant for production of

Underwriters—Hayden, Stone & Co., and

an underwriting
agreement, the name of the underwriter will be filed by
Offering—The shares will be offered for
subscription to common stockholders of record on Jan.
10, 1947, in the ratio of % of a share of new common

Offering—Shares will be offered
publicly in units of two shares of convertible preferred

Petroleum Heat & Power Co.,

amendment.

writer—None stated.

;

If company finds it
necessary to enter

50-cent convertible'
preferred and 238,561 shares ($1 par) common.7 Under¬

•

100,000 shares

Dec. 12 filed 20,000 shares ($10 par) common and
50,000 '
shares ($2 par) 50c cumulative preferred. Underwriter—"v

Dec. 5 filed 477,122 shares
($7 par)

Dec.

filed

Farmingdale,

Republic Indemnity Co. of America, Tucson,

Peruvian International Airways, Lima, Peru

(

*0$;% Ariz.;,(i/io)

equipment.

■,

/X/y:y/

Proceeds—Net proceeds will be used to

drilling j.; machinery

in view of the additional facilities that com¬
pany intends to acquire and its large backlog of peace¬
time
business.
Dec.
17, it was announced company
negotiated bank loans in lieu of public financing.

lam¬

Peninsular Oil Corp., Ltd., Montreal, Canada
Sept. 3 filed 600,000 shares of common (par $1). Under¬
writer—Sabiston Hughes, Ltd., Toronto, Canada. Price—

purchase

Street &

Smith Publications, Inc.
July 17 filed 197,500 shares of common stock.
Under¬
writers—Glore, Forgan & Co. ; Offering—The offering
represents a part of the
holdings of the present stock¬

necessary

60 cents

common

Kidder, Peabody & Co.
Price—By amendment.
Proceeds—Proceeds, together with bank loans, will be used
to increase working capitals Such funds are
deemed

: 'J.::/■: '//Xy-7

ferred stock.

-ware¬

and

Under¬

Weeks, Chicago. Offering —* Of
company is selling 200,000 shares and stock¬
holders are selling the
remaining 100,000 shares. Price
by amendment. Proceeds—Of net
proceeds, company will
use
$1,225,000, plus a premium of $12,250, together with
accrued interest, for
payment of a bank loan, and $493,500, together with accrued
interest,, for discharge of its
10-year 6% debentures.
Any balance will be added to
working capital.

share./

Chicago

the total,

Louisville, Ky.

Republic Aviation Corp.,

house, purchase of equipment and for working capital.
Business—Manufacture

Price—$10

par) common.; Under¬
Co., New York. Price—~-

Proceeds—For

public.

tion.

Pantasote Co., Passaic, N. J.
Dec.

($1 par).
Company has

stock ($2.50 par).
Underwriter—Bankers
Bond Co., and Almstedt
Bros., both of Louisville, and
Cruttenden & Co., Chicago.
Of the total of 60,000 shares,
the company is selling 40,000 and seven
stockholders are
disposing of the remaining 20,000.
Proceeds—Company
will use, its proceeds, together with
$500,000 bank loan,
to finance paints and varnish
plant now under construc¬

Offering

August 16
stock.

Stone Container
Corp.,

Oct. 24 filed 300,000 shares of
($1 par) common.
writer — Hornblower &

stock

common

share to

Nov. 20 filed 60,000 shares of

;

Reliance Varnish Co.,

are

V'''Z

Mines, Ltd., Toronto,

not

being sold by lti
being sold by A. L,
employees. Indefinitely post¬

stockholders, and 2,500 shares
Marlman

Offering Price—$0.60

entered into any
underwriting contract. ProceedsDevelopment of mining properties and exploration work.

June 28, 1946 filed 227,500 shares ($1 par)
capital stock
— F.
Eberstadt & - Co., Inc.
Offering —

Underwriters

225,000 shares

Gold

Canada

Nov. 20 filed 800,000 shares of
.

Co.,

Red Lake

Toledo

(O.)

Edison

Oct. 25 filed $32,000,000 first
mortgage bonds, due 1976,

and 160,000 shares of ($100
par) cumulative preferred.
,/■ //.Xx'X77 Underwriters—To be determined
by competitive bidding.
Probable bidders include The First Boston

* Soss Manufacturing Co., Detroit, Mich.
Sept 3 filed 40,000 shares ($25 par) 5% cumulative

vertible preferred.

Underwriter—Ames, Emerich & Co.,
Inc., Chicago. Offering—To be offered to common stock¬
holders for subscription at
$25 a share in the ratio of

one

preferred share for each five shares of common held
unsubscribed shares will be sold to
underwriters at same,
Price — Public offering price' of unsubscribed
shares by amendment. Proceeds—For
expansion of plant
facilities and for additional
working capital.

price.

postponed.

Offering

V'7-<;;

;

7/7

7//;/77 7

•

Specialty Bakers Supply Co., N. Y. (1/3)
Dec. 26 (letter of
notification) 150 shares of common
stock
per

(par $1,000). Underwriters—None. Price—$1,000
share, but not more than one share to a customer.

Proceeds to establish

supply business, etc.

and

operate

a
,

wholesale

bakers

Corp.; Halsey,
(bonds only); Blyth & Co., Inc.; and
Smith, Barney & Co. Price to be determined by competi¬
tive bidding. Proceeds—Net proceeds
together with $4,Stuart & Co. Inc.

con¬

500,000 bank loan and if necessary, the $5,000,000 to be
contributed by its parent, Cities Service Co., will be Used
to redeem outstanding debt and preferred stock, involv¬

ing

a payment of $53,906,590, exclusive of interest and
dividends.
;:y"vX'X
7
' :7
'

United States

Gypsum Co.

Dec. 11, filed 399,477 common shares

($20 par). Under¬
writing—None. Offering—To be offered to stockholders
of record Jan. 4 at $60 per share in ratio of one hew
'share for each three owned. Rights will expire Jan. 31,
Proceeds—Will be applied to the contemplated $42,000,000 plant

improvement and construction

(Continued

on page

46)

program.

THE COMMERCIAL & FINANCIAL CHRONICLE

(Continued from page 45)

;

Victory Gold Mines Ltd., Montreal, Canada

■

Nov. 13 filed

U. S. Television Manufacturing Corp.,

and 150,000 shares of common (par

preferred

to be offered for special purposes. Underwriters-

$1)

•••

Vokar

Dec.

capital and expansion of busi¬

Proceeds—For working
ness.

•

$5 per share for preferred.

Names by amendment. Price

of capital stock divided as

27 filed 900,000 shares

Dec.

200,000 shares of Union Preferred
shares of Union Bond Fund

Bond Fund "B";

Stock Fund; . 50,000

D. C.

Business—Investment business..

30,000 shares (no par)
offered to stockholders at $5 a share in the

common

to be

ratio of one share for

Investment

capital.

■

filed

1,200,000 shares

,,■:y'-f

■

Proceeds

number

additional

ment

the

and

total

construction,

sold

competitive

amendment.

Pierce,

Probable

Fenner

Beane;

Underwriters—By

include Merrill

Lynch,

White, Weld & Co,;

to be

are

stock to

common

yl^ey:

Glore,

& Co.. (jointly) i

The Wisconsih Co.; and Dillon/ Read & Co.
Part of the shares

Proceeds-

sold by Middle West Corp,

top holding company of the System, and part by pref¬

stock.

stockholders of North West Utilities Co.,

erence

unspecified

bidding/

bidders

Forgan & Co., andv Harrimap

lcapftal////;^1/
capital

Em¬

"V/kV-f

May 21 filed 550,000 shares ($10 par)

the company and by

parent

Wisconsin, who elect to sell such shares of Wisconsin
which

•common

will

distributed

them

dissolution of North West Utilities Co.

consists of

Upon

the

num- ;

Nov. 12 filed 5,000 shares (par $100)

its proceeds estimated

use

preferred stock.

Underwriter—RaUscher, Pierce & Co. Proceeds—Will be

$6,500,000 together; with a $7,500,000

to finance company's

Wyatt Fruit-Stores, Dallas, Texas

stated.: } r

smaller

used in part to equip three new caf eteriai, to

loan, toward payment of its promissory motes ; and

remodel its

ea$

super markets and to increase working

equipment and facilities expansion
•

program now Under way,

' <

Zero Frozen Foods

Co., Inc.,, Bremerton, Wash.

Dec. 19 (letter of notification) 1,940 shares of 5% cumulaWhite's Auto-Stores, Inc.

Aug.

equipment and for working

capital.

bank loans,

shares presently

Company will

minimum

bank

convertible debentures and

common;

purchase of

number

will be reduced if the offering

■/;;v':\:;'i■■■'"'."'i'S

The statement also
covers 105,000 shares of common reserved for conversion
of the debentures.
Underwriter—Carver & Co., Inc.,
Boston..
Price—By amendment.
Proceeds—For plant
($1 par)

225,000

'of

wholly-owned sub-*

being offered by each will be stated definitely by amend¬

Salt Lake City I

Utah Chemical & Carbon Co.,

Price by amendment.

Wisconsin Power & Light Co., Madison, Wis.

Under*,

common.

($1 par)

being sold by

account.

own

capital.. Offering date, indefinite..

Coulter, President and Director. The amounts

ber of shares.

Dec. 20 filed $700,000 15-year

//J<

Wash.

Seattle,

Offering/consists of

—

William A.

and Trinity

Worth... For

Fort

Corp.,

■.,,

ment.

each three shares held.Under-

writer—Federal Underwriters, Inc., Dallas;
Bond

repayment

expenses,

outstanding and being sold by four in¬

ployees Profit Sharing Trust, and for additional working

"best effort" ':

Underwriter—Dillon, Read & Co. Inc. Price by amend-

(letter of notification)

various

are

will be used to provide funds for a

share. Proceeds—Will be used for pay¬

Offering—Company

sidiary, retire loans from banks and from White's

Western■ Air Lines, Inc. (1/13-17)

,v,„ ■

Nov.

Dec.

working capiat.

($1 par)

common

dividuals for their

Auchincloss, Parker & Redpath, Washington,

—

offering 75,000 shares of preferred; the 50,000 shares

Underwriter—Mercier/ McDowell /

Inc.,

(par $1);" Underwriters—First Coloriy Corp. and

Proceeds—Proceeds from the sale of the preferred stock

purchase of equipment and for working

Dallas, Texas

Universal Corp.,

additional

Price—$7

ment

Proceeds—For in¬
/y.A-fov

selling agent. Price based on market.
vestment.

For

writer

"A"; 150,000 shares of Union

Abbett & Co., Inc., New York,

share.

Sept. 2 filed 245,000 shares

and 200,000 shares of Union Bond Fund

"C." Underwriter—Lord,

West Coast Airlines,

Stock Fund;

300,000 shares of Union Common

follows:

Dolphyn, Detroit, will market stock

basis.

Inc., New York

Union Trusteed Funds,

Corp., Dexter, Mich.;

stock

Childs, Jeffries & Thorndike, Inc.

(letter of notification) 16,000 shares of $1 par;

'
and

•

common.
.

•

ceeds—For developing mining
property.
Business—x
Acquiring and developing mining properties.-

cumulative con¬

Nov. 4 filed 300,000 shares (no par) 25c
vertible

400,000 shares ($1 par) capital stock. Un¬
derwriter—None as yet,
Price—25 cents a share.1 Pro¬

New York

Thursday, January 2, 1947

29 filed

preferred

•

75,000

stock

shares $1

($20

and

par)

tive preferred and 200 shares of common..;

•

cumulative convertible i

preferred share and $250

50,000 Shares

writing.

common

Price—$100

share.

common

No under-

For reinvestment in business.

■A.:"-

(NOT YET IN REGISTRATION)
INDICATES ADDITIONS SINCE PREVIOUS ISSUE

■

•

Alabama

(Only "prospectives" reported during the past week

•V

.•••>•/**.-V&

xw?;

given herewith. Items previously noted

Great Southern RR.

plans to sell early in January

Dec. 31 company

not

•

Dec. 20 common stockholders

which will be

Junior preferred stock, pending retirement of all out¬
standing 6% cumulative preferred.
Interest rates and
other details of the new stock will be determined by the
It is reported company plans to offer

directors.

ministrator said the pipelines were being

both.

for by Bond &

and

under

sell publicly any

the

Share common stockholders upder

plan of E. B. & S. Sale expected in

Feb¬

Barney

closed
that

•

of the

Co//;

that

none

all

In response

Public Service

This is disclosed in
sion to borrow

guaranteed to the government "what ; ;;

fair price."

Brand &

its

common

and

96,500 shares of ;

1947 and

Chicago St. Paul Minn. & Omaha Ry.; (1/8)

Bids for the purchase of $1,020,000

1962, will be received up to 12 noon

The successful bidder is to specify

application to the SEC for permis¬

during

4% bonds outstanding and refunding the

Read &

•

the dividend rate in

Hutzler/

Cincinnati, New Orleans & Texas Pacific Ry.

Hutzler.

NEW YORK

Halsey,

until Jan. 3

165 Broadway, New

provide

will

agreements.

■

PHILADELPHIA

CHICAGO
PITTSBURGH

•

CLEVELAND
ST. LOUIS
.«

$4,981,000 financing purchase of

sold under two conditional sale
'■

;

plans to issue early January of about

Stuart &

•

•■•*'•.

►;

Strawbridge & Clothier,

Dec. 27 company

Inc.;/Salomon Bros. &

Co.

Gas Service Co.

;; -

...';//• ;

Dec. 30 the SEC cleared the way for the merger of Kansas

(noon) by company

York, for lowest rate at which

■'

City Gas Co. and the Wyandotte County Gas Co. both

is offering to holders of its 8% prior

preference stock, series A, the right to exchange their

holdipgs for $5 cumulative
BUFFALO

include Dillon,
& Co. Inc.

(1/3)

Southern Pacific Co.

bidders

include

much

Co.Tn6.; Blair & Co.; Halsey, Stuart

Bids will be received

$1,700,000 equipment trust certificates. Probable bidders

Blair 6- Co,

balance.
as

(CST) Jan. 8 at

Stuart & Co. Inc.; Salomon Brothers &

Dec. 31 company

paying off

$12,500,000 of the issue and refunding the remaining

•

of the

separate application to be filed with the
■
*■

certain equipment to be

BOSTON

1947. ; Details

reported directors planning to give consideration
question of reducing amount of 50-year first mort¬

multiples of */g of 1%. Probable bidders include Halsey,

Corporate Securities

/Vl//

.$1,000,000 from banks to finance part of

$20,000,000 outstanding. Probable bidders

equipment trust cer¬

company's office 400 West Madison St., Chicago 6, 111.

State, Municipal and

Seaboard Air Line RR.;

gage

tificates, to be dated Feb. 1, 1947, due Feb. 1,1948-1957, or

United States Government,

;

Dec. 31
to the

early date, with Gearhart
Townsend, Graff & Co. as underwriters.

stock expected at

any

Peabody & Co.

Cb; of New Mexico

construction program

Commission.

stock

$20)

publicly

registration of 30,000 shares 5% cumu-' ■ ;#
(par

Probable bidders in¬

Directors, it is stated, might consider

instalments of $331,000 each,

INC.

proposed refundings, as well as the bank loan, will be

Oppenheimer, Inc.

preferred

& Co. and

to noon J an. 6 at Room
1304, 2 Wall St., New York, for the sale of $3,310,000

equipment trust certificates, to be dated Jan. 1,

-7//,/

to the / Dec. 30 company is considering a program to refund ,out*
standing bond issues of four of its constituent companies.

rejected, explaining

the bids had been

of them

•

granted by the government at

recent coal strike.

Company will receive bids up

maturing in 10 equal annual

♦.

Shares of Pennsylvania not subscribed for

clude The First Boston Corp., Kidder,

Dec. 27 reported

Pennsylvania Power & Light Co.

of the 1,164,375

lative

(1/6)

Dec. 30 Electric Bond & Share Co. will sell

given

Corp.
& Co. (jointly); Kidder, ;Peabody

Ohio RR.

general funds.

The lines / plan. | Sale expected in February.

by the Tennessee Gas & Transmission

emergency lease

|; I consider

;

Baltimore &

retire

by E. B. & S; common stockholders "under its divestment

;

/ earlier call for the bids the WAA received 16 proposals
to buy or lease the lines.
On Nov. 19 Mr. Littlejohn dis¬

(

Probable bidders include The First Boston

Smith,

& Co.

The

being operated at present for the transmission

natural gas

American stock not subscribed

of the 846,985 shares of

ruary.

The deadline for bids will be Feb. 8, 1947.

the time

Dec. 30 Electric Bond & Share Co. will

divestment

proposals will be publicly opened on Feb. 10.

in Janu¬

for; the out¬
Probable Underwriter—The First

American Gas & Electric Co.

reoffered for

combination of

leum and its products or natural gas or a
•:

Boston Corp.

•

to add to its

• :

sale immediately for use in the transportation of petro-/

the new series of preferred in exchange

standing preferred.

borrow $16,000,000 to

proposes

outstanding securities'of the constituent corporations and

of the Big Inch

and Little Inch pipelines was issued Dec. 27 by the/War/

are

ary

Cities Service Co./850,000 -shares ($10 par)

and

Assets Administration. ;s Robert M. Littlejqhn, WAA ad-

authorized issuance of 1,-

000,000 shares of a new class of preferred

The merged company
Gas Service will issue

common

■

'.If ' ^Aluminum C6„ of America

-if,

will be known as Gas Service Co.

?;?*

"Big" and "Little" Inch Pipelines (2/8)

A renewed call for bids for the purchase

$1 *■'£'

subsidiaries of Cities Service Co.

Jan. 1, 1948 to 1957. Probable bidders include Halsey;

Inc.; Salomon Brothers & Hutzler.

'.*4

are

repeated)

to its parent,

include
Co. Inc.; Salomon Bros. & Hutzler.

equipment- trust certificates. Probable bidders Halsey, Stuart &

on.

Stuart & Co.

$1,520,000

are

preferred; on

a share basis,
The offer expires Jaii.
30. ^ Any unexchanged shares will be redeemed at $105
and accrued drvidends.
' - -i\
;
•
j*'

plus a 70-cent c^sh: adjustment.

Volumes 165

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4556

Foresees No

ing. Most of the more substantial
industrialbbnd issues: that were

Change in Bond Market

Halsey, Stuart & Co. Inc., in yeaf-enci surygy, holds situation seems
present a favorable outlook for investment market and "investors
•lr can look forward,to 1947 with confidence."'
'
i.

Erie Railroad's

1966, indicated the market to
be in good shape and unburdened
by undistributed issues.

range marketwise."

narrow

buyers Were of
and" moved within

quality

$12,000,000 of 2%s,

due

available to bond

■

Sydney Council Bonds

7In its. "Year-End Bcind .Survey," the investment banking firm ot
halsey, Stuart & Co. inc., after reviewing the general investment

dituatipri
the

over the, past year, takes^
view that" aY change iri the poorly

social schemes.
of public
utility
prime investments
further strengthened during
conceived

bond market is not expected and The
position
the supply of investment bonds bf; bonds among

World Bank May Enter Market

The final issue of the year, was

"A new means bf foreign fi¬
nancing in this country was pro¬
vided with the establishment of
the International Bank of Recon¬

brought to,market on Monday this
week in the form of $8,500,000 of

struction and Development, corn-

Council (Australia).

10-year serial
Jan.

bonds,

due

1,1957, of the Sydney County

^irciassificatlbfis in:194T;ig Rkely was
to
approximate tM supply in 1946 by the high degree of stabil¬
1946,1 so that investors can look' ity which characterized their mar¬
to the domirig year with' confi¬ ket throughout the year."
,;

only referred to

;

dence. '" -V
if

"Prices at the

are

than

lower

during" the

w;1' "'x' *

end. of the year*
in

but:

January,

highs were

year new

Ost&bUshedy The market has been
Orderly, and new bond issues, gen-;

£rallyw$F,bVmatkete^

Railroad BondsUnder Pressure

general. readjustment

the

Which occurred in the entire bond

Spring, railroad r, is¬
sues were subject to speciah pres¬
sure.
The survey observes* how¬
ever,
that
there ; are . "certain
market

last

Sly ' with demand strong : as the!

favorable,

look

rearclosed, -

thesurveystates;;|

Commenting ori the government;
(bond ma rket, the ysurvey;'."adds:>

ground

factors

the

wiiich give

back¬

brighter out¬
to; the future of ;rail issues.
a

the World

This institution may* make

Bank.

loans frbm

its

the proceeds

own

capital, from

of bonds guaranteed

vailed

for

time

the

following

;

far have been few*

it; is reported

the war,

and was Weil received,
according to dealer reports,
Proceeds will be applied to re¬
demption next month bf $8,170,000 of City of Sydney 5V2S, due"
1955 at par and accrued interest*
but the latter bonds may be used
in lieu of cash in making payment
for the new issue,; and Will be
credited with a price of 102.468 it

cleared away and the stage

American market. ' While Upplicaso

terest, this issue represented the
first financing in the American •
market by an; Australian poll- '
tical subdivision
since before

better mood than that Which pre¬

summer-end Labor Day holiday.
by the Bank and from proceeds of And with
good reason.
bonds issued by the Bank itself.
For the debris left In the
There is Tittle question thai the
wake of the market's sharp de¬
cline through September and
Bank will have to raise a sub¬
October, had been pretty well
stantial part of its funds in the

tiqns fof loans from the Bank

Priced at 161 and accrued in¬

The investment banking indus¬
try closed the old year in a much

for

business

once

set
normal

resumption

the turn into the

year has been made.

the Bank may attempt to' enter
The harly fail found the bank¬
so tendered.
The remarkable reduction in re¬
thelfirst 5 quarter. of the cent
the American;. market early in ing fraternity faced with a series
Bond & Share Divestment
years; in debt * < andi 'iiked
V/
of problems growing out of the
year the government bond market
charges* the improvement in phys¬ 1947."
There are indications now that
Wag
rush to market new equity secur¬
comparatively strong,
im¬ ical condition* operating V Omy
Electric Bond &. Share will be an
portant factors contributing to this
ities, many; of them for issuers
Change in Bond Market NOt
cieney and motive power are Well
early-, candidate for competitive *•
Strength Were • I (1 > the knowledge
Expected 00. 00:', >'• none-too-weil seasoned.
knoWn./ A continuation of a
^

fduring

that the Victory Loan was the
last of the War Loan Drives .and

high

level of industrial activity < would
do much to

^ TkeBUtyey points out that with

clarify the outlook for
that additidnal large flotations of
a.hatib^
close to $260 bil¬
earnings and to remove the un¬
new government issues would not
certainty which has been over- lions, Treasury policy is expected
be forthcoming, (2) an improved
hanging the market for railroad to be the nicst important factor
budgetary outlook and (3) the ex¬ bonds in recent months.".
affecting interest rates.. Despite
pectation that the Treasury would
Some pressure upon the Treasury
bonfine whatever financing it did
industrial Financing Active
-

Early

market.

to the short-term

In April, however, the transfer of
funds from commercial banks to
the account of the Treasury at the
Federal Reserve banks, in connec¬
tion with government reduction

Operations, put pressure oh the
reserve position of the member
banks." This and other develop¬
ments were reflected in a sharp

volume

"The

both

new

capital and refunding industrial
financing in 1946 showed an in¬
the

preceding
years, but a substantial part
was*obtalned through serial
loans, private placements* or
crease

over

war

of it
bank

pub¬

licly offered preferred and com¬
mon

stocks.

for relaxation of its low-interestrate
are

interest rates will

continue with minor change.

The

supply of Investment bonds of all
classifications in 1947 is expected
to approximate "the supply

in 1946.

capital public Against this supply the demand is

New

government market

financing approximated $2 billioii,

expected to continue.

during April with a resulting ad¬
justment upward in yields on gov-*
ernment bonds.
At the close of

of which about; 50 % was obtained

the Survey states "since the situ¬

break in

the

the year, prices of intermediate
and' longer-term government is¬
sues were
generally lower than
the levels prevailing at the begin*
:ning of the year." 00000000

Municipal Market Active

i; Altogether, the municipal
ket / gav'e

the

through

sale

bonds,

balance through the sale
ferred

and

common

the

of pre7

stocks.

The

equity financing was disappoint-

ation as Outlined seems to present

favorable outlook for the invest¬

ment

can: took:; forward to .1947
-.

;

Holding Company Act.
Reports indicate the company

the

over

dam and the closing of the records
for 1946 finds underwriters and

unsold

merchandise

Unquestionably
taken

losses

some

unseasoned

se¬

summer

such

outpouring.

costs have

been

downward.

absorbed

HELP

ture are these: (1) the five-year
trend of a declining supply of
has

reversed;

been

calling

(3) the

deposits,
banks out of the

war-loan

which took many
market during

and

assume

re¬

firm.

legal, real estate,

of financial,

general

business ^and

ily
No.

icle,

New

Park

Place,

York 8, N. Y...

York.

Box

Financial Chron¬

No, FK 26,

Post Office Box

Mamaroneck,

672,

Dividend No. S

New

cents

clared

Corporation have de¬
regular quarterly divi¬

the

f->\y
Tncori>ordL«d
l
:
Natfoiiul Distributors

paid, of fifteen cehti (15c) per share
the

Cumulative

mm W. LTOG and COMPANY

dend, the fifth consecutive dividend
on

Distribution of
share from real¬
ized security profits payhble
January 15, 1947 to holders
of record as of the close of ;
business January 4, 1947.

Directors of thfs

;

Preferred

48 Wall

Chicago

■;

Street, New York 5, N. Y.
;v"i"
Los Angeles
.

Stock, payable January 15, 1947 to.
stockholders of record at the close
of business

January 5,1947,

FLEMING-HALL TOBACCO CO., INC

1946, is not

4 Cents per.

Preferred Stock

op-

experienced

;

Bond Fund, Inc.
Ordinary Dis¬

No.

traordinUry

FLEMING-HALL

TOBACCO CO., INC.

Our staff knows of this

advertisement.

indiviohal, fam¬

or group.

for

portunity
man.;

press

Unusual

declared

from regulkr in¬
vestment income and an Ex-

by long established over-thecounter

interests of

$850,000,000 of

authorized

bonus bonds in November;

coordinate

■

The Board of Directors of

Manhattan

llSTRADER'S^'a

sponsibility for management

Manhattan Bood Fund, Inc.

WANTED—MALE

WANTED

Pittsburgh, Bessemer & Lake

per

Lawyer, 42, ex-Lt, Col.

0Z0

DIVIDEND NOTICES

tribution

BUSINESS-ESTATE MANAGER

ing will be sold publicly through
competitive bidding*

has

SECRETARY

reception

accorded
the
final few issues of 1946, as for ex¬
ample, Eastern New York Power
Corp.'s $9,861,000 of 3Y4s bf 1961,
and

and

CO,

ruary.

DIVIDEND NOTICES

Among the changed and chang¬
ing factors in the municipal pic¬

Electric

holders at prices well below
prevailing
market
levels.
Any
stock not taken under such offer¬

'000y\00-

The

its

mon

But

where necessary and the books

closed.

The shares will he offered pre¬
ferentially to Bond & Share com¬

curities which piled up in large
order during the record-break¬

ing

dispose

846,985

1,164,375
shares of Pennsylvania^ Power
& Light Co., perhaps in Feb-

stock.

Were

common stock of American Gas

their dealers with only a smatter¬

planning

holdings

fair, account * of ;itself
the upr

in April, 1946.
From that
point, the price trend; has ; been

believe that in-

water

now

mar*

'high

to.be

With confidence." '•

StrtJAflON WANTED

jward trend which started , in Qcf
iober, * 1945,' reaching an Ml-tim6

voters

such securities and their opera¬

But that is

ineeting the requirements of the'!
"death
sentence"
clause of the

Of their capital was tied up in
tions consequently limited,

cer¬

tain of its subsidiaries by way

good part

Prices continued

in 1946.

bonds

market,

Of mucirPf/the festors

market experience

Concluding

position where

policy, indications at this time ing
that present

banking bids for holdings in

Many firms found themselves
in

PACIHC G.\S AND ELECTRIC CO.

By S. C. Korrt, President and Treasurer
REPRESENTATIVES WANTED

factor in 1947.

DIVIDEND NOTICE

The decline of almost $4 billion

Common Stock "Dividend *5^0. 124

and munici¬

in outstanding State

for

PRODUCTS

already voted and projected will

of that
decline, but it is hoped now that
will

•

'0f00 0"

•: y

gradually. • y"

The

toward

con¬

which have

cipal

been

targets

the

one

for

trend

toward

public

owner¬

operation
quarters,
that the new 'Con¬

to private

there is hope

will; resist

gress
■-

pressure

are

two

opportunities to become associated

Wholesale distributing organisation in established
The work requires extensive traveling, and
while
previous wholesaling experience is desirable it is not
essential. ;0 [0v\ ', V;;V \'00 0vV

December 26,1946.

,«*.!!
■

panj*

busirtess

brt

December

Transfer Books will
E.

not

30* 1946,
he closed.

San Francisco, California

stbek of the Bank,

applications will be treated in strictest confidence.

Address:
■

The
50

James

W. Bridges, Personal

per

the 7,400,000 shares

dividend.

be closed in connection with the

•;
THE CHASE NATIONAL

OF THE

Keystone Company of Boston

of the capital
record at

payable February 1,1?47 to holders of

The transfer books will not

payment of this

■

BANK

CITY OF NEW YORK

;W. H. Moorhead
•

Congress Street, Boston 9, Massachusetts

; for
■

BANK OF THE CITY OF NEW YORK

thecioseof business January 3, ij)47.

All

dividend of 40^

y
}

i:,.

S-.:,

V00,

-S;/;

-v

The Chase National Bank.ol the City of New York has declared
a

The

J, Beckett, Treasurer

treasurer

THE CHA$E NATIONAL

Applications should be in writing only and should
give a detailed account of: (1) age and marital status;
<2) education; (3) business experience, including accurate
description of affiliations, specific duties; and approximate
earnings; and (4) picture, if convenient.
>
;
;
;

under way
Although

still prevails in certain

There

•

than a decade.

antagonism
<

of the prin¬

regulation and

ship which has been
for

utilities,

It can mean a change in

reform.
the

for,

! \

1946, equal

by1 check on January 15, 1947, to
shatehoiders of record at the dose of

•;

THOS. A. CLARK
,

servative policy in Washington is
'encouraging

year

territories.

axprfessed that

opinion is

"shift

18, 1946, for the

of, the

2% of its f>ar value, Will be paid tipon
the Common Capital Stock of this Com-

with our

Utility Outlook Favorable

the

1947; The transfer hooks will not close.

market

the

come

Dec;

lourth. quarter

The Board of Directors has declared a regular
quarterly dividend of 25$ per share and an
extra dividend of 25^ per share on the butstanding Common Stock, payable on February 1^
1947, to stockholders of record on January 11,

FOR

eventually work off a part

they

oi "Directors

CORPORATION

bonds

Bonus

market.

the

A cash dividend declared by the Board

NATIONAL DISTILLERS

pal: bonds during, the war years
continues to be a strong backstop

Vice President and Cashier

THE COMMERCIAL & FINANCIAL CHRONICLE

that will be

Nation Well Off Despite

Liabilities: Heimann
Credit Men's executive

holds assets of country make it

ful.

helpful and not harm¬

"This

situation, a tremendous
abroad, can be both a

Thursday, January 2, 1947

responsibility, the spiritual satis¬

that will come through
liability
[helping our fellow men will make
spiritual and a business asset for
this nation. Leaving out the bus¬ our very best efforts exceeding
V
iness value of our, meeting this worthwhile."
faction

INDEX
For

good credit

detailed index of
\

...

forbidding list of liabilities, such as

risk, although there are a

global chaos, low
of government.

productivity,'inflation, and "expediency policies"
no economic loss from consumer resist¬

Foresees

;
; ;;
;'),j
balance sheet, as we approach the
year, would show that though the liabilities are tremendous,
are
are suf<$>
—:—1———:—-—:—
;—•

ance

iiew

rising prices.

they
ficiently out¬
weighed by
the
in a

assets

'•

The

"expediency policies" of the
government.

The

V The' [decline

the National

Henry H.

Heimann

ture.

.•

executive would feel
that the institution he : was re¬
"A credit

;r<:

viewing was deserving of credit;
tie would know of its past per¬
formances and its financial char-

throughout its history; he
would not consider it a marginal
account.
However, * he
would
watch it day by day and would
guide and counsel it and help it
to achieve a better financial con¬
dition. That," says Mr. Heimann,
*'is exactly the responsibility of
the American citizen."
:
In a forbidding list of liabili¬
acter

ties Mr. Heimann
:

includes:

Global chaos: "The

problem that
of a sound

productivity : "If both man¬

agement and union labor

officials

leadership and intend
to preserve it, they must discharge
their
responsibilities with due
-consideration for the welfare /of
general public."

"something-for-nothings":

The

;

who desire
willing to
earning it.
This liability can only be liqui¬
dated by a' determined govern'These are the people

.security without being
admit the necessity of

ment

policy."

[
Lower standards of ethics:
'There is no use in hiding our
Leads in the sand like ostriches
and not recognizing it. It is particularly true in certain public
.service institutions. For example,
the practice of bribing one's way

conveni¬
still widespread." -

into accommodations or
ences

Coming business failures: 'The
best that can be done in this re-

thorough educational
pointing out the dan¬
gers of venturing, into business
without capacity for management
or adequate financing."
•
>
i
In addition to the more obvious

spect

is a

program,

•

;

liabilities, Mr. Heimann lists some

liabilities that ap¬
the nation's balance sheet:

anxious

to get
receive recogni¬

young men are
started.
If they
and

tion

their

efforts

are

appre¬

ciated they will

pull this nation
through. They have demonstrated
their ability in the war in a con¬
vincing manner."

value their

the

we are

"There

government policies:
a hint of a
re¬

has been

turn to the

qualities of statesman¬
ship we would like in our public
officers.
While our previous ac¬
tions have been listed among our

liabilities, the recent trend
listed as a possible asset."

ing itself more and more, it would<S>seem, into
a
legal battle.
The the further organization of the
now has filed with the State
employees of Wall Street's broker¬
Labor Board charges
of unfair age houses. Although admitting
labor
practice against a
third somewhat reluctantly, its rival,
brokerage firm, A. M. Kidder & the United Office & Professional
Co., with which, unlike the other Workers of America, CIO, is mak¬
two cases, it is in the very midst
ing some slight headway in the

negotiations for

contract.

In the middle of

October, before
it had joined the AFL, th6 UFE
won

State Labor Board election

among the employees of A. M.
Kidder & Co., 76 to 64. Of 150 who
were

strength

representation of

in its

the employees.

•

The union has

good agricultural
ket for at least two years."

man:

attitude

The

the

"We

filed two

other

both

the

York

New

The persisting

inflation in real

estate and stock prices.

change and the New York Curb

Exchange but it has yet to con¬
its

clude

first

with

contract

brdkerage

just beginning to demand an
accounting of its own officials.
They
recognize
the i value
of
unionization, but they are begin¬
ning to assert their demands for
a
responsible leadership.
Their
aim
and
objective is work at
satisfactory wages and they are
more and more putting forth this
point of view. Strikes among the
rank and file of labor may not be

has called.

which it

ESTABLISHED
Members

1919

Security Dealers Ass'n

In Septem¬

lost

every,

Exchange PL N. Y. 5

HA. 2-8780

Teletype N. Y. 1-1897

ber when its big push for mem¬
bers

contracts

and

was

the

on,

union lost two other elections be¬
sides the one at

Harris, Upham &

Carl M.

272, and the other at the Em¬

pire Trust Company, 97 to 174.
-

Loeb, Rhoades & Co., 67

The

{UOPWA

ment with

has

agree¬

lawyers Title Corpora¬

of New York, providing

tion

14$ State St., Boston 9, Mass,

announced

concluded

it has

that

Oits ;t

Tel. (3AP,
.>

Teletype BS 2W

N. Y. Telephone HAnover 2-7914

for

unsettled, against Harris, - Upham

two-hour reduction in hours (from

& Co. in which the union

unfair

labor

choice

115 to 197.
/;

A,
.V ..r,\

• ,•

union

the

Meanwhile,

•/

week), and

per

new

minimum starting salary of $30.70

the

per

lost,
■

V;vV

union

general $6.50 salary increase, a

the

employees

which

election
•'

alleges

of interfering with

grounds
free

practice

i's.;

pro¬

ceeding with elaborate plans for

Diamond

week. The new. contract also

calls for
total

cases

adjustment of

for

payroll

inequities

salary

where

different

being paid for identical

Boston Woven Hose & Rubber
Merrlmac Hat Corp.

individual
rates

Alkali

JAttuuoai Corp.

setting aside 1% of the

Petrolite Corp.

are

International Buttonhole

work.

Thompson's Spa Inc.
National Service Cos.

Teletype—NY 1-971

HAnover 2-0050

;vC

Ralph F. Carr & Co., Inc.

•

v..*•

•,•

Bonds

and

Boston

•

Now York

Teletype

Hubbard 6442

Hanorer 2-7913

BS 321

;

&ro. Inc.

r.AHL MARKS
SPECIALISTS

Industrial Issues

•

50 Broad Street*;^:....

Specialize in all

Insurance and Bank Stocks

FOREIGN SECURITIES
■

Milk Street, Boston 9, Mass.

Brown Co.

Minnesota & Ontario Paper Co.
•,7'.;£* *
' .V.
V.- .rbfy'.k

^New York 4, N. Y.
CHICAGO=

AFFILIATE: CARL MARKS & CO. Inc.

Investment Trust Issues

Securities with

popular in 1947."

Public Utility Stocks and Bonds
TEXTILE SECURITIES
a

New Eng. Market

Consumer resistance: "Some
may consider this a
in reality it is one

assets
the

have

new

year.

liability, but
of the best

Frederick C. Adams & Co.
.V'.-?

into

move

Neut

It forces produc¬

competitive

time."v..•';

Specializing in TXnlisted Securities

arid

basis

' Specialists in
England Unlisted Securities '

■" •:

30 FEDERAL STREET, BOSTON 10

Established in

Tel. HANcock 871S

-r "

1922

Concluding his evaluation of
business conditions, Mr. Heimann
points out that the United States
must supply the wants of the peo¬
ple all over the world in a way

Bank — Insurance

;

Puklic Utility—InJus trial — Real Estate

;

Shortage

Freight Cars

long-term

large

business

volume

car

Co., Inc.

'"General Products Corp.

Bonds, Preferred and Common Stocks
Empire Steel Corp.

RALSTON STEEL CAR CO.
(freight

^Seaboard Fruit

'"Susquehanna Mills

for

BOUGHT—SOLD-QUOTED

manufacturers)

•Prospectus

request

Market about 7V2
1946

high

Circular

about

REMER, MITCHELL & REITZEL, INC.

Available
208 SOUTH
'

W. T. BONN 4 CO.
120 Broadway

New York 5

Telephone COrtlandt 7-0744
Bell

Teletype NY 1-886

\rW', ••*.«

LERNER & CO.
Inactive

LA SAUE ST., CHICAGO 4

PHONE RANDOLPH 3736

v'i

WESTERN UNION TEtEPRINTER "WUX"

,
•

BELt SYSTEM TELETYPE CG-989

Thompson & Co., Inc.

Markets and Situations

10 Post Office

for Dealers

Securities

120

Square, Boston 9, Mass.

Telephone Hubbard 1990.

Teletype Be 09.

Broadway, Now York S

Tel. REctor 2-2020

Teletype BS 22

indicates

Sunshine Consolidated

M. S.WlEN & Co.

election
employees

has

union

among

"The rank and file of labor

Gerotor-May
U. S. Radiator Pfd.

brokerage house or bank. With
the single exception of the elec¬
tion at A. M. Kidder & Co., the

Lumker Sc Timber
Delhi Oil

Ex¬

Stock

Abitibi Power & Paper Co.

tion

policy"' that1

New Issues

•

The UFE does hold contracts with

that .situation js desirable at any

' The > "easy-money

Domestic & Foreign
Securities

operating in the financial district.

Co., one among the employees of

other, the oldest case of the three,

working

pear on

lias distorted people's ideas of the
value of money and retarded the
desire to exercise thrift.
"

Reorganization

mar¬

of the hidden

Rails

"Street," the UFE still feels that
it is the most; important union

dating back to September, but still

Old

can

page

organize the

union

see

AgricultureV well-being:
will have

contents

houses in New York's financial district is resolv¬

complaints of unfair labor prac¬
tice with the State Labor Board,
one
against White, Weld & Co.
discretion we will do much to
for dismissing union members, in¬
stabilize the world."
>v:
cluding officers, v while the union
The - nation's confidence:
"We
was in the act of organizing the
; have a confidence born of our par¬ employees of the firm, and the
ticipation in the war. Most of our

for the welfare not only
people, but also, more
important still, of the world."
Low

the

the only na¬
tion that can really afford to ex¬
port capital,: goods and food;
If
we use credit in this respect with
present time

own

our

>. -v;

"At

credit:

nation's

The

recovery

balance

■:^'■'i.-v

asset."

business es one

faces

the

various brokerage

eligible to cast ballots at the
time, too, six did not vote.
The
Heimann includes:
..V
union charges now that A. M. Kid¬
Productive capacity: Though the
der & Co. is guilty of unfair labor
desire or incentive to produce is
practice because, while negotia¬
weak, our capacity is enormous. tions for a contract are actually
"The demand for goods, though
in progress, it has laid off some
over-stated
in
many
lines,
is union members.
Apparently, quite
nevertheless larger than it has
aside from the justice or injustice
been in years. If this demand is
of the firm's action, the union is
supplied,
our
great productive afraid that
by such tactics it will
capacity will be a > tremendous lose its somewhat slim margin of

appraisal of

in spiritual'values.

side

asset

sheet, however, shows that the
picture ' is
not
entirely
dark.
Among our current assets Mr,

&A, a t e s in an

Nation's
business fu¬

The

Credit Men,

the

thinking

try instead of one particular part

Association of

sectional

people; the need for men who will
think in terms of the whole coun¬

;1947, Henry
&. Heimann,
Executive,
jManager of '

'•

conserva¬

tion program.

risk

dire need for

The

the

4good

country

The attempt of the United Financial Employees to

analysis of the nation's

Charge of Unfair Labor Praelico Broaght by UFE
Agaiasl Third Wail SI. Firm, A. M. Kidder A Co,

Tele. NY 1-2660

Full text of Commercial and Financial Chronicle : January 2, 1947, Vol. 165, No. 4556, Section 1

FRASER