Full text of Commercial and Financial Chronicle : January 21, 1943, Vol. 157, No. 4144, Section 1

View original document

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

M 2£

•US. AD SI'

UB»A*Y

Edition

ESTABLISHED OVER 100

-Reg.

Volume 157

Number 4144

New

Pat.

YEARS

■"% [EDITOR'S
Company of St.

•

»H'

•

'•

ftfv

REPORT

Educational

York, N. Y., Thursday, January 21, 1943

traders

investment

with

most

Price 60 Cents

That

firms

especially

true

NOTE:

the

National

Security Traders Association, Inc.]

Foreword

he rescinded

pinch of inactivity
of

insurance

other
who

the

and

corrected without

delay.

period before and after the turn

purchase of listed or exempted securities or any com¬
modity, or real estate. In other words, it rules that one
may speculate but only in the media which it selects.

of the year.

This

found

week

institutions,
companies, re¬

chiefly insurance
turned to

more or

less normal

rou¬

activity after their long
journ away from the market.
Naturally
business,

so¬

good part of this

though

even

believe

Regulation T

the

New

of the few

one

Deal

men

The

over.

But

when

they

Washington who doesn't
assume the Repub¬

Democrats

licans will capture control of Congress in
dent.

1944 and elect the Presi¬

mention

this to Mr. Roosevelt he laughs
heartily and tells them the party will be returned next year and
will remain in power for ,10 years.
Just why he doesn't make it
12 years is not
known; 10 years ii^
the time he sets.

the

seems

confident

that the Democrats

are wondering
what, if anything, he has up his

sleeves.

that he

accepted

intends to

fact

sort

immediately.
Just why
things will be dif¬
ferent among statesmen if they
are
members
of a league or a
council will always be difficult
it

again and
undoubtedly he is looking to his

for

world

assumed

that

Men

him
Henry Wal¬
carry

convinced this is going to

are

have

run

program

through.
lace

Purpose

tine and perhaps showing a bit of
extra

Mr, Roosevelt is

broker

investors

normally close down for

By CARLISLE BARGERON

Regulation T of the Federal Reserve Board prohibits
or dealer
from extending credit on unlisted securities (except exempted securities) to a customer. It is
highly discriminatory because it does not curb marginal

part

companies

institutional

AHEAD OF THE NEWS

Mr. Harris is associated with Scherck, Richter
Mo. and is Chairman of the Public Relations and

Louis,

those who have been feeling the
r

Copy

Any regulation which tends, even unintentionally,
to restrict the free flow
of capital otto restrain the purchase of, or cast a stigma on, \any class
of corporate se
curity is injurious to the national economy and should

the

currently
are
looking at things in a little more
cheerful light these days.

By IRWIN R. HARRIS

Committee

\
Bond

FROM WASHINGTON
V

REPORTER'S
!.

2 Sections-Section

Office

OUR

■

1943

Final

irresistible

appeal

but

There

understand.

was

went

terrible

after

the

yearning
last

war

for

the statesmen to get together
and know one another.
Up until

this

time, it

believed,

was

lot of

result of 1927-29 spec¬ there are mighty few members of friction between nations devel¬
ulative excesses and was'4
promulgated with the triple pur¬ Congress who share his optimism. oped because their statesmen were
They assume the reaction is going far apart; because they didn't
pose of reducing speculative stock purchases; of maintain¬ to be the same as
it was after the knock around
was

conceived

as a

enough with each

ing

higher degree of liquidity

investment brokers last war, worse if anything. other, learn the other fellow's
themselves which, in turn, would be a protection to their More or less to keep the record ways, his ambitions, his vanities,
firms, did not find reflection on
the; tape, since it was carried
straight and to kill off the issue etc.
Mr, Hoover sought to do
customers and for the purpose of
increasing the liquidity which the New Dealers
hope to something about this yearning by
through under Rule 14 which
of the broker's borrowings from his bank.
Apparently, make against them, the Republi¬
(Continued on page £74)
permits a member to go to the
the theory behind the regulation was that all listed issues cans intend to
over-the-counter-market
with¬
go in more and
more
for some sort of an estab¬
are
out first feeling out the floor
highly liquid simply because they - are traded in an
INDEX
lishment of nations, some sort of
market.
auction market, i.e. on a National Securities
Exchange. an assembly, call it whatever you
Bank. an<3. Insurance stocks.....
270
Dealers
reported inquiry for Consequently, as a broker or dealer is prohibited from ex¬ wish; something to which lame
Business Man's Bookshelf
280
good-sized blocks, particularly of
tending credit on unlisted securities to his customer, he has ducks and men with socially am¬ Calendar of New Security Flotations .278
handled

Stock

Exchange

among

railroad obligations.

The bulk of
activity was understood to
out of insurance portfolio
men's ideas for "switching."
such

grow

Having had ample opportunity
to study their holdings these ex¬
perts are now engaged in seeking
to lift the quality of the over-all
holdings without, however, put¬
ting too much new money into
purchases.
(Continued

page

confine

his borrowings on unlisted stocks or bonds to
holdings margined with his own capital. It is in¬
consequential that he can borrow on unlisted securities
belonging to customers which have been hypothecated
to

his

own

with him

additional collateral
(Continued

margin accounts.

276)

page

Special Editorial Material Featuring Savings and

277)
on

Enlist Your Funds in the

marines

inasmuch

strictly a propaganda one, hav-i
ing no real meaning in fact.
You would think the present
squabbling among the United Na¬
tions, particularly over North Af¬
rica, would chill the ardor of the

Investment

Trusts

......271

Municipal News and Notes..........272
Our

Reporter On Governments

Our Reporter's
Personnel

Report,........

Items

.265

...

.,.,..268

Railroad Securities
Real Estate

,.280
.

.269

..........

Securities.......... .268

Securities Salesman's Corner.,,277
Tomorrow's

Says

.„.

Markets—Walter

Whyte
.269

Uptown After 3

..........276

hasn't.

this

THE

CHASE

NATIONAL

■rrtififrifr-.

Sanderson & Porter
ENGINEERS and CONSTRUCTORS

INVESTORS' INC'

R. H. Johnson & Co.
Established
INVESTMENT

San Francisco

64 Wall

Utah Power &

1927

PROSPECTUS
5

OBTAINED

AUTHORIZED

MAY

Utah-Idaho
other

SECURITIES

Western

FROM
DEALERS

from

HUGH W. LONG and COMPANY

PHILADELPHIA

Albany
Buffalo
Pittsburgh
Williamsport

Troy

Syracuse

Salt Lake

INCORPORATO

15 EXCHANGE PLACE

634 SO. SPRING ST.

JERSEY CITY

LOS ANGELES

Dallas

service with Chase

Securities

correspondent

J. A. HOGLE & CO.
Members New

BOSTON

Broaden your customer

Sugar

Established

Street, New York

Light

Amalgamated Sugar

and
-

52 WILLIAM STREET

1859

IWj FUNDAMENTAL

Buy War Bonds
and Stamps

FINANCING and VALUATIONS

BANK

Specialists in

OF THE CITY OF NEW YORK

r; ;■■■■■■/

MANAGEMENT PROBLEMS

NEW YORK

label

REPORTS

army, navy and

Established

isolationist

that

In connection with

Chicago

■ appointed
They figure
this is about the best way out of
the argument.
They would like,
of course, to get from under the

also

can

Europe.

dreamers, but apparently it
They are saying, indeed,
proves the need for a
council, a league, or something of

Page 274.

QUICK ACTION ON DESIGN

SURVEYS AND

wives

live in

world

Loan Associations Starts

AND CONSTRUCTION

bitious

and

City

•

1915

facilities

York Stock Exchange

Denver

Los Angeles

•

and 7 other Western Cities

Member

Federal

Deposit Insurance

Corporation

H. Hentz & Co.
Membert

Actual

New
.

York

Stock

New

York

Curb

Exchangs

Cotton

Trading Markets, always

Exchange

have

prepared

NATIONAL BANK

Exchange

York

New

wide range

recent

memo

of INDIA, LIMITED

Commodity

Board

Chicago

Orleans

New

And

Inc.

Exchange,

other

Head

MEXICO,

F;.

PITTSBURGH

Security

45 Nassau Street

MEXICO

GENEVA, SWITZERLAND

REYNOLDS & CO.

INCORPORATED

Tel,

REctor 2-360Q

Philadelphia

Dealers

New York

Teletype N. Y.

Telephone:,

Ass'n

1-57#

Enterprise

#015

Members New

120

York Stock Exchange

Broadway
Telephone:
Bell

New York, N. Y.
REctor 2-7400

Teletype.NY 1-633

the

Government

Colony

Office:

and

26,

London,
Branches

HART SMITH & CO.

Kobbe, Gearhart & Co.
Members

DETROIT

PRODUCTS, Inc.

Securities

NEW YORK

Kenya

Exchangs

Exchangee

N. Y. Cotton Exchange Bldg.

CHICAGO

Bankers

PUROLATOR

Over-The - Counter

Trnda

Cotton

York

Bell

New York

Security Dealers .Assn,
ST.,

Teletype NY

Colony

HAnover 2-0980

1-395

Montreal

Toronto

and

Bishopsgate.
E.

Burma, Ceylon, Kenya

Aden

and

Zanzibar

Subscribed

Paid-Up

Members
New

52 WILLIAM

In India,

Uganda

Reserve
The

Bank

banking

Capital. ..,£4,000,000
Capital
£2,000,000
Fund
,..£2,200,000

conducts

and

Trusteeships
also

every

exchange

and

description
business

Executorship!

undertaken

THE COMMERCIAL

266

FINANCIAL CHRONICLE
&

Thursday, January 21, 1943

Trading Markets in:
JVe Maintain: Active Markets

Farnsworth Television

CANADIAN UTILITIES

Tennessee Products

KING
Members

New

York

1920

HA 2-2772

BArclay

7-0100

New

120

.Teletype NY 1-672

Members

York

New
1

NEW YORK

BROADWAY

115

Telephone

TELETYPE NY 1-423

Members New

and Other Principal,Exchanges

Members N. Y. Stock Exchange

MCDonnell &(b. Steiner, Rouse & Co.

Goodbgdy &

Ass'n

Davenport Besler, lstlnc.6s,'53

Walworth Pfd.

^
I

Dealers

Security

Exchange PL, N.Y.
BEZiZI

CANADIAN BANKS

KING

Established

Serial

Warren Bros. Class A, B & C

CANADIAN RAILS

Debardelaben 4s, 1957

Remington Arms

CANADIAN MINES

Missouri Pacific

Alabama Mills

Botany Pfd. & Common

CANADIAN INDUSTRIALS

Triumph Explosives

American Cyanamid Pfd.

for

Stock

■

25 Broad St., New

REctor

,J'el.

Exchange

York, N. Y.

NY 1-1557

York Curb Exchange

New Orleans,

BROADWAY," NEW YORK

York stock

•

Exchange

2-7815

La.-Birmingham, Ala.

Direct wires

branch offices

-oar

Unfair Practices In Securities Business
St. Paul 5s

Materially Eliminated; NASD Deports
Results

of a program of-'self-regulation 4n ; the securities busi¬
discussed at the annual meeting in Chicago of the Board
of Governors of the National Association of Securities Dealers, Inc.

TOWNE SECURITIES

were

ness

with

Mr.

Authorized

Fulton

expelled in

issued

cumulative pfd.

Common

(no

($100 par)

par)

;

40,000 shs. 39,788 $>is.

40,000

.-.

FUNDED

56 €>—

that

reported

principally'• on

\.!\ V:1,

barges of
fair

Securities

Corporation
the major source of its income
70% interest in the Compania
which, with its subsidiaries are

holding

prices and

■——-

■

J.F.Reilly&Co.
Members

lated

Association

York

and

to set up
It

fined up

The following is a record of dividend payments on the preferred

...

1939

still

1937

1939

1941

WATER WORKS

the

belief

SECURITIES

,.,

working

plaints had to be. filed against only
5%
of
Association members
ih

10.25

enforcement

of approximately

reserve

future

S500,000're¬

its

demonstrate

curities

by operating company and still maintained.

Accrued

unpaid dividends

$35

business

late

tained

own

its

for

'<■

•

CRAIGMYLE, P1NNEY & CO.

se¬

intends to .regut-

"Those, who

The winter meeting

practices

Members

York

New

WALL

ONE

Stock

8T„

Exchange

NEW

YOKK

WHiteball 4-5290

Telephone

Will Admit Three

In Chicago Feb, 3rd

the

that.the-

ethical

Mr. Fulton said.

rules

Inquiries Invited

■

protection of in¬

Hornblower & Weeks

of the

bers

& Weeks, 40 Wall
Street, New York City, members
of the New York Stock

and

Executive

mem

Council

the National

Security Traders As¬
Inc., will be held in

sociation,

Hornblower

of the Na¬

Commi tteemen

tional

interests of the industry and
the protection of
investors,"

the

preferred

NSTA Council To Mesl

sociation in the last two years and
its intention to pursue' aggressive-

j *ir

Statistical Information

Complete

41" Yv/.•.'3

"The effective work of the As¬

13.50

,j-\

combination 6with ob¬

business.

the two years.

7.25

8.00

com¬

.Bond*

by ; brokers and dealers
high' standards of .professional
.This would! be especially
desirable if, when the war is won,
there,:were to be a large migra¬
tion of people into the securities

pointed

that

Preferred Stocks

ethics.

.He
out

4.00- "

ralton

18.00

1942
cash

...

1940

^Special

1938

7.00

Wallace H.

1-2480

pe-;

servance

fo t

essential

was

vestors

riods.

$5.50 per share

sus¬

varying""

li- toon

f'r

Financial responsibility, he said,

arid

were

pended-

stock since their inauguration:

1935

$2,000

instead

Dealers ,A$sn.

New York, N. Y

lfyifttM

minimum stand¬

reported,' tection of investors.

Security

System Teletype,

Eell

along these Tines'> but which

ards- '

tion, 65 firms,
.were

NASD4

establish., minimum

NASD;: Mr. Fulton, said, that such
minimum standards are. desirable
in the public interest and for pro¬

mar¬

kets.- in addi¬

•

failed

re¬

pre¬

vailing

that the l

the. SEC had. promulgated

rule-

,! not

reasonably;

Metalurgica Mexican a,
engaged in the mining
of silver, lead, gold, zinc and copper in Mexico under
the administration of the American Smelting & Refining
Company, which owns the remaining 36% interest.

the

/ at .that

p r i c es

lieing derived from its

disapproved

had

New

71 Broadway!,

capital requirements for members

se¬

curities

company,

SEC

proposal

un¬

the sale of

Tow no

————

Seaboard 4s-5s-6s

He called for constant attention

Rractic^1.war period. He recalled

FMr;

40,000

DEBT

Int'l Great Nor. 6s

;

Director,

1941-42 for violations (to problems which the industry!
'of the Rulesof land the, SECrwill face; fn .the post|

Executive

Fulton,

members of the Association ■.were,

CAPITALIZATION:
.

Wallace

reporting that during
the past two years the NASD has by education and disciplinary ac¬
tions materially eliminated unfair practices in the business.

CORPORATION
;

Mo. Pac. 4s-5V4s-5V2S

en¬

other

changes,
ship

leading

Exchange

national

ex¬

will

admit to partner¬
of Feb. 1st, Howard E,
George
L. • Morris and

Buhse,

„

of December

gage in unfair practices are small
in number considering the size of

31, 1942.

Mr. Watson will-

the

per

James J. Watson.

Stock

Association

but

will not relax in

Higher metal prices

(from which

partial benefit in 1942)
Mexico

indicate

the Company

received only

plus generally improved conditions in

results

1943

our

even, so

York

New

Exchange,
acquiring
the
membership of the late W. David

vigilance."

Owen.

part of plans for this year^
disclosed that the.2,300 mem¬

member

;

Mr,

Morris
for

has .been with

should

very

some

the

bers would again be examined by*
the
Association
with
particular

satisfactory.

Dealers may find the preferred stock interesting for
tion.
Currently available in the higher 60's.

distribu¬

arm

reference to their

Buhse has been with Hornblower

During
most

L. SCHIFFMAN & CO.

60 BROAD ST.

the

Association

program

its

the

meeting disclosed the ex¬
of mortality in the securities

tent

business

resulting, from the

Mr, Fulton said

with

Edwin

second

lieutenant

while

The Bond Traders Club of Chi¬

first

4l/2 °/o

Federal

Gas
&

Water

annual

In the past guests and members

Fuel

their

dinner on Feb. 2.
The
Bond Traders Club of Kansas
City
have announced theirs for Feb. 4.

Pfds.

6°/o

hold

Winter

lieutenant, U. S, Army.

Eastern

will

cago

attending the Chicago dinner have

Gas

often

gone on
Kansas City,

Common

the

dinner

said,,

members-

Scheduled Feb. 2-4 I

inger, has recently been promoted
from

sulted,.

Traders Globs Dinners

J. Schles¬

into

rectly
war

entry

proportion

the

decline'

was

traceable To effects

5y3%, €°0 & 7o/q Pfds.
Power
&

mergers
and . o t her
make-up of the mem-'

bership.
Mr.

outlined

the

part

the securities
in

war

tion

industry has played
financing and the coopera¬
all

branches

during

the

First

Baker Named Pres. 6f

Light

Govt. Sealer

Virginia Public Service
6% & 7°o Pfds.

represents over

members

United

throughout

States

the

withaffiliated

in* 21 major cities; over
financial firms are repre¬

1,000
sented

the

association

meeting is

held

be
'

without

••if*

sociated with the firm for
of

ber

with

PINE

ST..

Teletype

WH:tehaU

1-609

4-4910

ities

'cooperation with the Secur¬
and

toward

Exchange

Commission

solution

lems and

recalled

that

these

prob¬

Chairmah

James S.

dent of the Government
Security
Dealer Grouo to succeed
Dominic
W. Rich of D. W. Rich &
Co„ Inc.

The

year

1943

;

should

such combined attacks

see
on

social

any

at¬

The

* *

nuirw

the. past he

was;

Spokane Int'l Ry. Escrow Recpts
Consolidated Electric & Gas $6 Pfd

■

Financial

Deep Rock Oil
Ohio Match

Chronicle)

SACRAMENTO,: CALIF.—Wil¬

Universal Match

liam D. James has formed William

James

with

Co.

offices

the Western States Life Insurance

Robert C.

Mayer & Co., Inc.

Established

Building, to engage in a general
securities business.

Mr. James for

mutual

problems,* Mr.* Fulton said.'

years;

Halsey, Stuart & Co.

James In Sacramento
(Special

York

New

one

tractions,
frr

Broadway,

Mr. Callaway has been as¬

City.

roster.

of great im¬
portance to the industry and will

opportunities for

Baker of Harriman Ganson Purcell of the SEC lest
Ripley & Co., Incorporated, New summer initiated action of, this
York City, has been elected
Presi¬ kind on many specific subjects.
:.

G. A. Saxton & Co., Inc.

Group

closer

were

groups

The

Fulton

Brown

* office,

2,000

ehar°v»s in

that there

Pfds.

3~ f,

announces

The association

di¬
the

Perry

ident.

the
.

in -attacking- problems of the
industry due to the war. He said

Jersey Central Power & Light

charge of
department
in)
f

Michigan Corporation
the
appointment of
Wednesday," Feb: 3;
The meeting will be presided oyer David. H, Callaway as assistant,
by William Perry Brown, Pres¬ vice president in their New York
Chicago

members';. personnel,

upon

causing

military - 'service

large

balance ' of

from,

re¬

Win,

year

Utah

many,

Callaway V.-P. |
Of First Of Michigan

that the Associa¬

Over 25% of the decline

year;

associated

for

Mr..

David

war,

during the

Robert L. Schlesinger, formerly

Bell System Teletype NY 1-924

R. Schlesinger Promoted

office,

Chicago

has been

investment

manager

;hat .office.,!
."
"**

undertaken.

ever

tion had 2,281 members at the end
of 1942, a drop of 20%

|
I

the

and

years

2,500 members, the

Philadelphia

Weeks

Membership statistics reviewed
at

NEW YORK

Telephone HAnover 2-4870

over

extensive

kind

1941-42

examined

of their

pricing policies.

years

Pine

1915

Street, New York

Telephone DIgby 4-7000
many

years

has

been associated

with Dean Witter & Co.

Sell System Teletype NY 1-1790

"--T"

-Volume 157

the; commercial & financial chronicle

'Number 4144

COMMERCIAL and

Jos. Martin Fariner'

FINANCIAL CHRONICtE

We; are interested in offerings of

;

William

Jteg.,_ g.: S... Patent '.Oifiee-

,
"

BEekman 3-3341
Herbert 'ix

■

.Spruce Street, New' York"

In Goodfeody & Co.

B. I>«ma Company
Publishers

.<■

Joseph A. Martin, Jr. has'to¬
day been admitted to partnership
in Goodbody & Co., 115 Broad¬

*
•

„

267

Seibert,,

High Grade

AND COMPANY

One

Public Utility and Industrial

New York City,: members^ df:

way,

LlCHTfflSTEir

Week Nearer

Victoryl

;

QUOTH THE RAVEN

;

William

York. Stock

and other, leading

-Kiggs, Business Manager

PREFERRED STOCKS

.Exchange!

•

exchanges.

of tfterorderi

time in'"charge

some

Chicago—In .charge pi
Gray/Western Representative,
Field Building. (Telephone State 0613k
London—-Edwards & Smith, \1; Drapers'
Gardens,'.London, £.C.

William

'•

Dana
"L

' ■

•

1942, .at the post 'office it
N.-Y., under the Act of Mat.
•;
' '
' •
/
;
|

25,

ruary

New York,

®,

1879.

First ; of

Michigan

SiibsCtiptibn* "ih

Australia

and

$31.00

Africa,
of

account

the

per

;

Bought

—

Sold

—

Quoted

•'

.•••

-f

'.Analysis

Request

SCHCRCK/'RICHTER

Members

■

York

New

rartdum

Bell

Stock. Exchange

WHitehall 4-6330

Teletype

Co.'s

Trust

Participations

Bell

Teletype

St.

CO;

L. J. GOLDWATER &
INC.
Members New

Garfield 0225

Louis, Mo,

L.D. 123

fork Security Dealers Asm,

Broadway, New York, N, Y«

HAnSver

2-897®

Teletype

1-12**

Federal Water & Gas
•

just- issued by -Cohu1
Tocrey, 1 Wall Street,* New -YorkCity, members of the -New/YorkStock Exchange, - Copies of this
interesting memorandum mayl be
had from Cohu & Torrey upon
request.' •••.*• v
;
,

Bride,

M.acBride, Miller

The Portland 'Electritr Power; Income 6s of 1959 have

been

Consistently

of the most actively traded bonds,

in'the'.over-the-counter
market, testifying to the substantial interest in and the potentialities
pf:this'issue.-# .v; .i"*
one

Farnsworth Television
York Ice Machine
Common

Preferred

/v> /Oh the basis of underlying learning power and asset value this
.bonds,,currently available around 35,'appear to have room for subr

Eastern Sugar
Common

Preferred

stantiaf appreciation.

'' 1 ■
-a>—
—
—
*
outstanding accumulated Income Bond inters
est reached. 30%
bonds-have paid no interest since
i
A Plan of Reorganization has
Sept. 1, 1934,. and as of Dec.; 1,
been filed with the Court and the
1942., carry accrued interest j of'
& Com*
making a total. claim; of S/ Er C, by the Independent Trusl

'X •••!:

pany.

:The

$16,250,609

the bondholders for

interest' and

$24,500,000/
only
Dealers /and banks, in Oklahomd debt pf Portland Electric Power
have given most -/of their time i h Company with the exception of a

Oklahoma City,

December

ing. We

The' bonds

over

constitute ,tne

are

delighted with the
of

success

this

na¬

underwrit¬

fully * covered by cash
;

Albany, N. Y;

tees

the

Portland

J F.Reilly&Co.
Members
,

Electric

.bondholders

Power

would

Belt

Power

System

Teletype,

1-248®

Make Your Securities

Pay Your Income Tax

Portland Traction Company while
the
Preferred ^ stockholders
of

Electric

Dealers Assn.

Broadway, New York, N. Y.

ap¬

proximately 72% of the stocks of

Portland

Security

Income

receive

York

HAnover 2-4660

Power Company under which the
Portland

New

Electric

Portland General' Electric and

financ¬ small amount of current liabilitles

Government

principal

Okla. j

on hand,
.
The Company owns all the out¬
ing.
4
-i standing'Capital stocks of, Port
Our - municipals-, are
land General Electric Company
scarce, * .de?
manding very- low yields; Refuridt and Portland Traction Company/:
ing' and new issues are very -rare; These stocks were pledged "under-

tional

•

Title

other

all

i •

1-2033

Ctfs.

Bank

COMPANY

SB 45G

possibilities according to a memoy

CERTIFICATES

St., NX

Co,

Landreth Building

The current' situation in Northi-

Newburger, Loeb & Co ■
40 Wall

Ctfs.

Mtge.

Ctfs.

BANK MORTGAGE
.

Co.

Club of New York.

PARTICIPATIONS

In,

Co.

Title

Complete Statistical Information

anty Trust Company and . later
joined White-, wWeld & Co, r Tjn1916 he opened the *New: Yofk of¬
fice of Stacy & Braun and in* 1923
became Vice-President of The D«?r-

rop;Aircraff, Inc. offers attractive;"
TITLE CO.

Invited

Mtge.

and

;Mr. Hoysradf started in the in¬
the Guar¬

Company;
He was the first
president of The- Municipal; Bond

WHITEHALL 4-6330
BONDS

ESTATE_SECURITIES

Bond

Northrop liioks Goc>d;!l
PRUDENCE

Lawyers

SECURITIES DEPT.

4-6551

Specialists

Inquiries

vestment business With

WHitehall

Are

'/'*'***

STREET, NEW YORK

Lawyers

iiroit

TO REAL ESTATE

6s of 1950

Wall- Street,

New- York

year.

NEW DIRECT WIRE

&- Co., 14
City.. • '

Moseley

fluctuation)8

advertise¬
New York funds.

Corporation,;
"""

In the rate of exchange, remittances for

foreign
subscriptions,,
ments must be mad^f in

•

Portland Electric Power

REAL

has become associated with T.

Uriitied"' States

and
Possessions $26Mper year; in Dominion
Of Canada, $27.59 per year; South and
Central
America,
S]pain; Mexico and
Cuba,
$29.50 per year;- Great Britain,
'Continental Europe (except Spain), Asik,
NOTE—On

99 WALIt

Warren, Jr* Hoysradt, * formerly
Vice-Presidenf/ and director of the

ravin' f

Telephones

HoysradfJoists 1'
F. S. Hoseley S Co.

Reentered as second-class matter Feb¬

•

not

Obsolete Securities Dept..

Teletype NY 1-5

Members New York Stock Exchange

W, J.

;

Mines, Raven Silk Stocking comAibn, or any other junk — and
we're

Street, New York

Telephone HAnover 2-4300

fred

25 Broad

offices?

Other

What do you mean, never more? '
We'll quote: on the Raven Gold''

Sjpencer Trask & Co.

week" fevery Thurs¬ department. He wilfactas aiterj-;
hate on the floor' of the Exchange
day! general news.and advertising issue*
wun a statistical issue on, Monday!
j ; for H. Van Brunt McKeever. ,/'-■! ;
Publisbed* twice

"NEVER MORE"

Mr;
Martin has been with the firm for

•

'Thursday, January 2Ir 1943'

New

lhe

'Editor, and'Publisher
•'William'Dana Seibert, President

would

receive the

remaining 28% of the
stocks plus other remaining assets
of Portland Electric Power Com¬

An interesting circular

has just
Schmidt 8c
New York

been issued by Filer,

Co., 30 Fine Street,
City, describing how

"put

and

call" contracts may be used by
'/ /•>'';
This is the day of the negotiated tional Bank and
Trust Company* eome'foonds and were transferred j Analysts point
out,: however,^ holders of securities to obtain ad¬
market.
We find that firms and
to a: nominee* of * the Trustee for that the Trustees' plan is based onv ditional funds which may be used
salesmen who intelligently present
the bonds in, March, 1939, when
(Continued - on page 279)
to meet the increased tax burden.
Philadelphia, Pa. ;
their; offering*
to well selected
The activity in the City-of Phila¬
Copies of this circular, together
prospects are
fcucceeding* Work
delphia has been 'mainly concen¬
with a booklet entitled "Informa¬
seems to he the magic.—George R.
trated in the City of Philadelphia
Cooiey, Pres. George R. Cooiey &WE TRADE
;
tion Please!" containing
details
Bond Refunding Plan ; of- 1942*
Co., inOf
: ■
about "put and call" options in
which has stipYulated a great deal
of interest in the municipal: field.
question and, answer; form, may
1

■

.,.

the

—Philip Ji Rhoads, The First Na¬

;

Portland Electric* Power In-

pany.

Cleveland* Ohio J

finding* a good/ demand
for municipals and other ta* free*
bonds of medium length maturity,
with
anything like a fair yield.
The
demand
is particularly for
yields slightly h i gh e r~ than is
.obtainable in prime securities. • De¬
mand for stocks of better grade
are

The

I S Portlatd

proposed

split - up; of ; the
United Gas Improyement Corpora-

ofTarings to -have good bus¬

iness-—C,

McDonald,

properties are the, first of
large public utility holding com¬

panies to be dissolved, and: it is
that

this

hut

the*

felt;

indicate *'

Eastman, Dillon & Co.
Members New

!
.

increasing

.an

of'the

start

activity

diversification

;

15 Broad

Street, JNLi Y.
Bell System

Direct

Private Wires

that

can

yields,

those ,of the
lesser
which* offer good
-Exemption from Federal

names

■

Income taxation continues to make
such

bonds particularly attractive/

especially to privateinvestofs.
'
also find a steadily expand¬

ing interest in investment trust
shares, as most investors .believe
that

experienced

management
the

new

©an

full-time

and

cope

"with

Over

•'

the past

several months we
have* developed a" good following
in railroad bonds, both of interest
paying" and reorganization/ issued,
ft is our feeling4 that 'the 'recent:
large call, for tenders on-i the part
of the BaItimore & Ohio, together
with

that

weeks ago,

Schmidt

the

Seaboard

some

railroads -during.

f program

Can You Use Me?

Teletype NY 1-752

&t.

Cashier-Office

•

Louis-Chic a go-Los

2.0

Angeles

years

Manager

experience

with

the

seeks position with

over»the

counter

house where his knowledge of

the business

pleased

can

utilized.

Exempt from military service.

to announce^

MR. FRED

that

Box Al,

BLAKE

Financial Chronicle,

Spruce Street, New York.

has become associated with us as manager

our

Municipal Bond Department

Corneil-Dubilier
Electric

•

CRUTTENDEN & CO.

Debentures —»Common
Bought

Members

Xew York $tock Exchange

Corporation

—

Sold

—

Quoted

Chicago Stock'Exchange

sounds the keynote for
1943.-

Such

should bp very stimulat
Institutional irttereit. in securities Jng to market prices.-—Richard
continues dull. —* Van Dyk Mac- Shipman, Blair F.
Clayjraugh & o

.,Syradi^N^-Y'4.v V:! ^

problems which arise- con¬ large scale' bond purchaser by the

stantly how-a-days."

Filer,

leading

We ard

tained in the"well managed Mutual

especially

Exchange;

street,

ob¬

York Stock

telephone.Bowling Green 9-3100

Funds*——W. t. Morgan, Pres. W/ffi
In jNew Jersey we find" a good de¬
/*<";"V
mand. for local municipal bonds, Morgan & Co.
known

from

U. G, T.

Newark, N. X

had

Co. upon request.

ity in the public'utility field, "Thh
the

wide¬
McDori- spread ; public
acceptance of .the
" management
accomplishment ancl

ald-Coolidge & Co*

fion has caused considerable activ¬

that; ; will;, be • generated
companies with- good dividend red- throughout the country on "the dis¬
ords has, been excellent.
Our-dif¬ solution of the
large utility hold¬
ficulty has, been to get sufficient ing companies.—Yarnall & Co. f 4
volume of securities to sell in Sales of
Wellington Fund shares,
every instance. Our customers ap¬ of which we are the national dis¬
parently are in a mood to buy both tributor, have reached ail" all-time
bonds and stocks.
We only lack
high in recent months. This' seemsproper

Electric Power

6s of 1950

209 South La Salle

Street, Chicago

CRAIGMYLE, FINNEY & CO.
Members

ONE

New. York

WALL

Telephone

ST.,

Stock

Exchange

NEW

WHitehall

YORK

4-5290

'FINANCIAL^ CHRONICLE

THE! COMMERCIAL; •&

268

Aircraft; Com. & Bonds

Howard

Engineering, Com.-

Northwest

General Motors Building
,

New York

2nd Pfd.

Seattle Gas Co. 1st &

•

City

(Broadway Motors BIdg. Corp.)

f 1

Chicago Title & Trust Co.

Co. Com.

Pettibone Mulliken

Memorandum

if you contemplate making
send in particulars to the Editor

Request

lication in,

F|orida Portland Cement Co. Units
..

A. i

'-Incorporated

„

SALLE., STREET

SOUTH

■

Ira

CHICAGO

associated with

affiliated with Dean Witter.& Co:,
.634 South Spring Street.

Ill Broadway.
previously with

Fink

was

Hirsch, -Lilienthal & Co,

New York

41 Broad Street

N,:rY,—Samuel

become

Haupt &. Co.,

Mr.

4 Members New York Security Dealers Association

additions to your personnel, please
of the Financial Chronicle for pub¬

this, column.

NEW;YORK,;

Fink has

Seligmah; Lubetkin & Co.

HICKEY & CO.
135

*■

•

■

Teletypes: CG I234-5-6

private

Direct

'wire'

Telephone HAnover 2-2100

to New York

(Special

Teletype NY 1-592

Co., has become

ft.

(Special Ho The Financial Chronicle)

•NEW

LA.i-Leslie

'ORLEANS,

L. Watson has rejoined the staff
MASS. — George' E. of Beer &
Company,, 817 Gravier
joined the staff" of
Street. Mr. Watson was recently
Paine, Webber, Jackson & Curtis, Associated

KANSAS CITY

has

with

Federal Street.

REAL ESTATE SECURITIES

Through Wire Service

(Special

(Strauss Bros.)

CHICAGO

duced

(Strauss Bros.)

here,

fact^ about many specific issues were digested.

believe.it is

mentioned

(Murdoch, Dearth & White, Inc.)

(Special, to The Financial .Chronicle)

examples in the various articles.

connected

averaging

bid of 40.

The

as¬

sociated with G. Brashears &

pres¬

•

Chronicle)

with

Steiner, Rouse

Co.,

I-""

•

Albert Ackerman has become

(Special to

Angeles, calif;—saui

Los

Thr Financial

ORLEANS, LA.—Moise
L. Cahn, formerly with Beer &
Co. for many years, has become

market value, at the time the issues

Some of the headlines you may
recall were:

:, Co., Maritime Building.

•'■'*1

"•

(Special

•

were

Jones,

NEW

matter of interest to compare the present market of

of these issues with the

some

ST. LOUIS

Street.

dustrial securities, r

Tbi Financial Chronicle)

Larz

specializing in municipal and in¬

BOSTON, MASS.—Leon J. Biscornet, formerly of R: H. Johnson
& Co., and Lewis A. Elliott, pre¬
Markets Show Continued Uptrend
viously with Stokes & Co., have
In going back over articles appearing in this column since Sep¬ joined the sales organization of
tember, 1942, under various headlines, a few pf which are repro¬ Sears Corporation, 68 Devonshire

NEW YORK

Haight "has
of

staff

•

»•

Financial Chronicle),

Thfe

PORTLAND,

ORE.—James

be&r-added

Atkinson,

Jones

the

Co.,

bid prices range from 15J/2 510 South Spring Street. > U. S. Bank Building.*
"
* '
62, averaging 44. At the time
lected Security?
(Special to The Financial Chronicle)
"
the
articles
appeared, the j bid
(Special to The Financial Chronicle)
"An Inflation, Hedge—Hotel Se¬
LOS ANGELES, CALIF.—Wiley
prices on the hotel» properties
curities S.how Strength"
V. Mills is now with Fewel/ MarPORTLAND, ORE.—Harry Lewere
23, 40 and 48; today they
"Insurance Companies' Invest¬
is
with
Hess
&
ache
&
Co.,
453 South Spring land Phillips
are 26, 45 and 56, respectively.
ment"
Mr. Mills was
formerly Butcharfc, American Bank Build¬
Intelligent' analysis
of real Street.
"Intelligent
Analysis
By
In¬ estate securities will
with
Johnston
Company,
Inc., ing.
present many
vestors'"
Securities
Corporation,
situations
in
which
it. will be Empire
"Reduction In Assessed* Values
(Special to The Financial Chronicle)
and Genera! Industries Corpora¬
found that yields-are
very attrac¬
Helpful To Many Properties"
SAN FRANCISCO, CALIF.—E.
tive and based upon facts and con¬ tion, Ltd. V
"Increased Hotel Business"
Gauthier,
Jr.,
previously
with
ditions, are considerably under"1942 Tax Law Favorable In Its
(Special to The Financial Chronicle)
; t
Strassburger & Co.,' has become
priced at present levels.
Effect On Bondholders"
LOS ANGELES, CALIF.—Clar¬ affiliated with E. F. Hutton &
"Improved
Realty
Conditions
ence
S. Dyment, previously with Company, 160 Montgomery Street.
ent

BflUM, BERNHEIMER CO.

"Real

Bonds—A

Estate

Neg¬

1016 Baltimore Avenue

KANSAS CITY, MO.
Tel.: Harrison 6432

Teletype: KC 472

BOSTON,

Baggerty

•

Hutton

Chronicle)

to The Financial

lTihuiJsday/ -January 21 j • 1943

■

ST. LOUIS

„

React To Benefit Of Bondholders"

The

SAINT LOUIS

out

509 OLIVE ST.
Bell

interesting facts in relation
Securities brought

to Real Estate

have

articles

these

some

TRADING

•Mh':

•

I.'

In
*

*' •*

tention

Members St. Louis Stock Exchange

■*

a,:

'»«

*•

Doyle, O'Connor Names
C Casey, Casserly V.-P.S
CHICAGO, ILL.—Doyle, 0'Conr
& Co., Inc., 135 South La Salle
Street, announce that Fred J.
Casey and. Thomas D. Casserly,
Jr., have been elected Vice-Presi¬

■»-i

;

was

drawn to the current

yields and to enhance¬
ment in value possibilities. Dur¬

SECURITIES

discussing specific issues, at¬

•<

MARKETS IN

REAL ESTATE

interest in sound real estate situ¬
ations.

Henry Riter 3d Elected Chairman Of NASD
At Annual Meeting Of Board Of Governors

been,

timely and have to
degree created a new born

believe,

System* Teletype—SL SO

Henry G. Riter 3rd, senior partner of Riter & Co.^New York
was elected chairman of the National Association of Securi¬
ties Dealers, Inc. at the annual meeting of the board of governors

City,

■

held in Chicago.

attractive

ing, the period,, ten specific issues
were
discussed,
seven
office
buildings and three hotel proper¬
ties.
Bid h prices
on : the , office
buildings

ranged from 11

son

SHASKAN & CO.
Members New York Stock
40 EXCHANGE

Bell

PL.,N.Y.

Lawrence

olis,

DIGBY 4-4950

Teletype NY 1-953

, „

|
'

Both

dents.

men

have been

asso¬

ciated with the firm since its or¬

ganization., Mr. Casey has been
identified, with the bond trading
.fraternity, for twenty years and
Vice-President

was

Traders Club of Chicago

Mr.

Bond

the

in 1934.

Casserly was formerly

with

Mackubin, Legg & Co., of Balti¬
more.

Wilh Crutfenden & Co.

Club Elects Officers
CINCINNATI, OHIO—The Cin¬

in the

of the best-known

Middle

men

tion of Mr. Don G. Miehls and Mr.

Daniel

ager

Ritter

Western

municipal bond
president of the
Municipal Bond Club of Chicago,
has joined Cruttenden & Co., 209
South La Salle Street, members
of the New York and
Chicago

field and.the first

of the municipal department

member of the sales

department

since the company was formed in
1935.

Exchanges, as head of the
firm's municipal bond department,
began

George P. Clere, Assistant VicePresident of Burr & Co.,
York

City,

Street for

cepted
as

having

over

20 years,

the

has

ac¬

position for the duration

senior administrative officer

with

the

York

Ordnance District.

been

Inc., New

been

War

appointed

Board of

Department,

New

He has

member of the

Award, of the New York

District

the

was

future

Association

program

the

enforcement of its

fair practice rules and aggressive
Nolan * -'& • Co:,- enforcement of ,the- NASD rules
determined
upon
for
the
Washington, D. C. was elected was
treasurer, and Wallace H. Fulton, coming year with the approval of
Philadelphia, was appointed ex¬ plans for an annual examination

the

here

until

1932

and

The

Second

Manager/of

The finance committee, .will

Montague

President—Arch

tional

Montague, W, tee

Merrill

Blum,

Spo¬

Inc.,

Vice-President

—

members

business

were

Theis

E. Hutton & Co.

First

the

na¬

commit¬

conduct

Albert Theis Jr., Albert

Sons,

Inc.,

Louis,

St.

George Chairman; William P. Smallwood,

Phillips, W. D. Gradison & Co.

Smallwood

Co.,

Fort

Worth;

Witter &
F. O'Connor, Pohl & Co.
Co., Los Angeles; Clarence E. Unperiod Dec. 31, 1933 to Dec.
Secretary—J. C. Siegman, Edw. terberg, C. E. Unterberg & Co.,

study are 147 Stocks with their
performance record for the nine

31, 1942, inclusive.

The study is
divided
into
three
main
parts:
stocks are first compared as to
groups; the second part shows in¬
dividual
performance
of
each
stock according to the average
total gain; the third portion con¬
sists of comments and

brief

an¬

alysis of the results of the study.

Copies of this interesting bro¬

chure, -vwith

memorandums-

~on-

Second

Vice-President

■—

Edw. Ralph E. Phillips, Dean

New York

Brockhous & Co.

Treasurer—Clair

S. Hall & Co.

American

Casualty

Firemen's Insurance

Newark,

and

Casualty

Company,

from
upon

New

practices of the mem¬

of the Association.

bers

James Buck To Manage

City; Samuel K. Cun¬

Hall, Clair ningham, S. K. Cunningham &
Co.,
Inc.,
Pittsburgh;
Edward
Brockhaus, Edward Brockhaus &
Company,

Company of
Amsterdam
may

be had

Co., Cincinnati; W. S. Gilbreath
Jr., First of Michigan Corporation,
The

CHICAGO, ILL.
Buck, well-known
since

Street
his

elections

closed

the

two-

of the Association,
Huff, Geyer & Hecht, Inc. which discussed the expanding
request."—-**"^'"—* —--—-work of the securities industry in
meeting

James R.
La Salle

1913 when he beg^n
career
with the

investment

Harris Trust & Savings

became

.associated

Rice &

Bank, has
with Halsey,

Company of Chicago, 141

West Jackson Boulevard, members
of the New York Stock Exchange,

Manager of the investment de¬
partment, Joseph Rice announced.
After leaving the Bank, Mr. Buck
because
associated
with Halsey,
as

Stuart

Company and later or¬
the investment depart¬

ment of A. G. Becker & Co. here.

1924

late

Charles

Buck

organized, with the
W.
Folds,
Folds,

Co.

1940

became

Manager of the Chicago office of
&, Co. and during the past
has been connected with this
firm's
buying
department
in

Otis

year

Cleveland.

Mr.

Buck. has

been

prominent in industrial and utility
financing and in recent years
served

Chairman of the board

of the

Republic Gas Corporation,
the Federal Screw Works, Detroit
and the Atlas

Brewing Company,

Chicago.

Detroit.

day

Daniel F. Rice Dept.

ganized

Elected
Arch

the

Beardslee

and

Richards

kane.

Study
Huff, Geyer & Hecht, Inc., 67
Wall Street, New York City, have
just issued their annual study of

year

com¬

prise Mr. Riter, Mr. Bosson, Mr.
Nolan

for

addition to the officers
association, will be com¬
posed of Mr. Limbert, Hermann
F. Clarke, Estabrook & Co., Bos¬
ton, and Ralph Chapman, .Farwell, Chapman & Co., Chicago.

later, with

Included

committee

the

"Performance"—Market

treasurer..

1943,

was

their municipal department.

"Performance."

executive

Wisconsin

Baird, the
Milwaukee,

Company,

Recently he
has been with Farwell, Chapman
Co. in Chicago as

Robert

A. G. Becker & Co.

of business

ecutive director.

Mr. Blake's bond

with

market action and income entitled

Clere With War Dept.

chosen chairman of the

Co.,'Inc., New York, vice chair¬
William A. Fuller, William
A. Fuller & * Co., Chicago,'chair¬
man
of the finance committee;

Stock

since 1938 and Mr. Ritter has been
a

Elwood, &

man;

v4ft

Vice-Presi¬

Mr. Miehls has been man¬

dents.

Bosson, Putnam & Co.,r Hartford,
was

Retiring officers of the Asso¬
elected the following officers for ciation, in addition to Mr. Dewar,
the year 1943: <•.
were:
Lee M. Limbert, Blythe &
....
»,•.

associated with A. B. Leach & Co.

CHICAGO, ILL.—Blair, Bonner
Company, 135 South La Salle
Street, have announced the elec¬

cinnati Stock & Bond Club have

one

Ward Bank in Milwaukee. He

Woodard

Nolan, > Folger,

CHICAGO, ILL.—Fred D. Blake,

career

Blair, Bonner V.-P.s.

Woodard,

Finance Committee; James Parker

CintL Slock & Bontf

Fred 0. Blake Is Now

it is announced.

MiehlsAndRitler

and

.Conn,

;

nor

Co., Minneap¬
Warren
Willard,^
Boettcher &
Co., Denver, were 'the government's war-financing
named: vice-chairmen. F. Edward program*.
Also under discussion

Exchange

60,

Mr. Riter succeeds H. H. Dewar, of Dewar, Robert¬

& Pancoast, San Antonio, Tex.^

Mr.
Daniel

Buck's

association

Rice

with

Company was
previously reported in the Finan¬
cial- Ghronicle-of 'January 14.* - -

TfJE; COMMERCIAL & FINANCIAL CHRONICLE

Number 41441

1 <57r

Volume

of the "stocks which

was1 one "

had

clearly demonstrated

resistance." level1 at * 50

tomorrow's Markets
Walter

-•*

But

coincidental

jnr-.

that

with

i t

'•

»<•

• •

' *■

Specializing

everybody knew about. Well,
it finally managed to cross it.

Whyte

269'

J-'

...

* v

Defaulted Railroad Bonds

crossing was the bullish-talk
coming earnings,

j....

CANADIAN STOCKS

about Steel's
which

Says——

Abitihi Pwr. &

Algoma Steel Corp.

everybody seemed to

PFLUGFELDER, BAMPTON & RUST

agree' would be outstanding,
Whether they /Will! or not

Members

York

New

Stock

Asbestos

for, the; time

Broadway

being.1 The market has dem¬
onstrated time /and again in
denced by varying forecasts.:
the last few months that good
Offerings overhead important
news
of a .corporate nature,
and wait for basic changes
even outstanding news, means
father than headline stories/
little to if., /But from a psy¬
to move ahead.
-n-j
'/

a r

befuddlement evi¬

By: WALTERMJiYTE

)

•

cross

further, and last but
probably the most important,
individual stocks among the
leaders began showing a dis¬
turbing spottiness.
any

...

❖

bluest

was

the first is

which

The

ability to rally
through the 120 price on vol¬
ume it could be expected to
rally further.
Well, the penetration came
but the volume, so important

covered

not

under

that

xover

considerable

call

what

had

foreshadow' rejection by the Interstate Commerce

■

If these conditions

were

that the .railroads,

•

and. the

Lehigh Valley

current

was

soon

kind of

froth which

Now

showed

around but

milling

-actual forward

again>

fore;' Just

comes

they

to the

a v e

contempt for gener¬

ally expected 'opinions in the

I think they will
;; This1 in;;turn brought1 on show an equal disdain for
the third stage, or rather the opinion at present: Right how
third stage was already going the talk of a "minor correc¬
on
but drew little attention. tion" is generally accepted as
One reason was the action of perfectly proper.
The extent
of this correction is the only
v a r i o u s groups which be¬
fogged the over-all picture. > bone of contention. One says
If you will look back at the 110, another 100, and others
action of U. S. Steel for the something else.
From where
past few days-you will get an I'm sitting I say that if the
progress.

past,- .-so

•

idea of what T mean.

Steel

market

does

show

not

any

get up and go within the next
week, neither the 110 or 100

;

LAMBORN & CO.
99

figure will

mean a

will go into another period of
dead staleness which will not

only tire out

SUGAR

the

present

turn
j

good many of
day bulls but

most

cancellations

refuses

Iowa

guess

safe to
mow

present

a'small fraction of its face value;
and the debt of the

than 5%

ment

them

from

substantial

discounts. .' The suggestion to seg¬

regate the increases is doubly im¬
portant in its potential influence
on prices for second-grade bonds.
In the first place, the acquisition

whether

chase or-by

invitations--for- tenderimportant- market

accelerated
would

reduction

'bring

debt

pronounced

The status of the

reorganization
roads under such a plan as that
now being mentioned is not quite
clear.
It is hardly, likely that any

sum

retire¬

of the total face

Commission could
or
against any
particular group of,companies so
that
the
reorganization
roads
ruling' of

all

that

believe

our

Study

for

(

for the

•.15•'

•

course

there is

ST., N. Y.

{(Cpntpqed .on p^ge,?^) .......r.

HAnover 2-0980

1-395

presumably

Toroiito

Montreal

have

also

reorganization roads are un¬
jurisdiction of the courts,
and actual outlay of the mone^'
would
be subject to
court dis¬
der the

cretion.

Nevertheless,

probable

that .'the

(Continued

seems

courts

would

page'270)'

upon

defaufted railroad

The
dex

Rust,

City,
for

Broadway.

shows

Jan.

bond in¬

Banipton

Pflugfelder,

New

York-

following

the

ranges

1939, to

date:

high—;

price—42^'/

44; low—14%; Jan. 20

A Timely

Suggestion

for DEALERS

OIL ROYALTIES
specialize in
gladly mail

filed

with

SEC

Royalties - and
schedules

you
on

our

current

offerings.

Request

TELLIER & COMPANY
Members

1. h. roihehild &

co.

specialists, in rails
U wall street
HAnover 2-9175

n.y.ci.
Tale. NT 1-1293

Defaulted RR. Bond Index

Eastern

Oil

Royalty

Dealers

Association

Established

1962

Inquiries invited
Copies

■;"

news

3l/2 s, '56-73

the

rather timely

DIgbr 4-272?

Yor^:

would

will

'68

1960

segregate the portion of revenues1
in question.
On the other hand,

SEABOARD AIR LINE"

rampant bulls.; into disgrunt¬
led bears.

1944

PRODUCING

)

Exports—Imports—Futures

WILLIAM

"THE CURRENT OUTLOOK

1949

the

discriminate

outstanding railroad
This includes serial equip¬
obligations which do not

5s,

HART SMITH & CO.

themselves,
open-market
pur-,

strengthening of credit -positions,
debt

Power

Hydro Elec. 6s,

Quebec Power 4s,

of bonds by the roMs

obvious

value

marginal roads

generally J at.

selling

;.;

largely; to

debt.

the

debt which is' selling; for

seems

x/z*> '45

33/4s, 1969-B

Minn. & Ontario Paper 5s,

problem to the in¬
vast -volume of de¬

any

dustry,
faulted

that the increases

of such-

issues)

lnternat'l Pow. & P., N.F. 5s,

and in the second place,:

Gatineau

Internat'I.

Bell Teletype

when .one con¬
siders that it would be equivalent
to

N. Y.

factor;

The importance
diverted

Incorporated
1
New York,

Wall Street

this

1949

Co. 5l/zst 1961

Gatineau Power

1935

be '

of $500,000,000. -

1953

Paper 6s,

Mont; Lt. Ht. & Pr.

& Fort Dodge 4s

would

assume

Consol. Paper

New

in effect will yield in excess

ment

1951

1932,
1934
1949
1962

capacity- of the in¬

Int'l

Pac. iRy. (var.

Dominion Gas & Elec. 6

Bell Teletype NY 1-8517

1943 traffic

basis

Canada Norlh'n Power 5s,

Canadian'Utilities 5s, 1955

1938

travel vary widely.
thing
does " seem
certain,
however, and that is that the vol¬
ume of business done by the car¬
riers
this \ year will r be limited
dustry.

Company 5s, 1959

Frederick Hatch & Co.

One

the
'On

1953
1967

Shawinigan Wtr. & Pow. 4s, '61

and passenger

pfd.

BONDS

Calgary Power 5s, 1960

Com., W.I;

New

Central 5s

Des Moines

grant any

open

Louis

St.

Iowa Central 4s

the

Brown

york

new

Teletype: NY 1-2050

Minneapolis &>St. Louis 6s
Minneapolis & St. Louis 5s
Minneapolis & lSt. Louis 4s
Minneapolis & St. Louis 5s

;

How much

estimates of probable

only

street,

3-3450

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

presum¬

1943

mean

com.

Aldred Investment 4%s,

market.

(in reorganization)

Minn.
-

thing.
Hi

"I think instead the market

WALL STREET

NEW YORK CITY

will

Canada Ltd.

Abitibi Power & Paper 5s,

roads

from

ST. LOUIS RAILROAD

improvement of the basic

Commission

Assurance

Winnipeg Elec.

MINNEAPOLIS &

Commission.

the

Co. of

Canadian

debt retirement
become
practically a

12-months' basis.-

the' contrariness

with

some

on a

bond

Miries

Canadian

Moreover, such assurance that the.
moneys
derived from the
in¬
creases was
to be entirely dedi¬

they

the

markets

the

hesitation

The result brought
second phase,
a

heat died.
about

simmered down

Wall

WHilehall

$450,000,000 additional gross

above 120.

coupon

Ltd.

Ltd;

offer

these

com.

Algoma Cent. Hud. Bay 5s, 1959

trading.- This type;of 'crop out at the bottom of a ably eliminate what outside sup¬
trading:is. characterized by a dong market
cycle'.they port the OPA has for its demands
liot of -talk accompanied by Would either be unimportant Tor cancellation. ? *
«: The"
implications of the segre¬
pencil demonstrations all cal¬ 'or even slightly bullish. But
gation, of: the rate and fare in¬
culated ■ to show how much 'they are appearing in the face
creases would be tremendous;
On
money can be made. The sum of a well recognized offering the average; the- freight rate in¬
total, however is little actual level, Unfortunately this crease amounted to approximately
4V2% while passenger fares were
trading. ■
level; (120-130) while recog¬ increased a
straight 10%
with
nized by technicians as exist¬
very few exceptions.;
It is esti¬
; It
is true more new ac¬ ing is considered secondary mated# that on the volume of
counts
were
opened
and to a mythical line which the business done by the rails last
year the increases would bring in
stocks were bought here and market
crossed
in
moving some
But their total effect

able

Orielle

CANADIAN

with

cated to

augment

This would

the'program
has

LEROY A, STRASBURGER & CO,

•

that

bonds

at substantial concessions

rials, it may almost be taken' for
granted that by' far the bulk of
such funds would go into debt

-fetish

generally

are

registered

Mines

Sun Life

mate¬

scarcity

Steel

Southern Pacific, etc.
We

Pap.

Lackawanna

Inc.

Shawinigan Water & Power Co.

Illinois Central

■

Mines

Corporation

Pend

New York Centred

properties or for debt
reductions.
Considering priori¬
ties

rjg. & Stor. Ltd.

Noranda
1

they would be earmarked for use
solely for additions and better¬
ments

Moore

particularly obligations of

now

;

Co.

Groceterias,
Ref

Mines, Ltd.

Minnesota & Ontario
Montreal

segregated

If the increases Were

Lake Shore

Loblaw

markets In .most
of the medium-priced Rail Bonds,

railroad, position- would

"If"

there.

Imperial Oil Ltd.
Kerr Addison Gold

net .trading

maintain

inflationary in¬
the general price struc¬

exerted

retirement:

strength in other por¬
tions
of the market; Tele¬
a't this stage of the market phone was slowly but per¬
cycle, failed to materialize. sistently sold.. -,.
volume

appears

ture and

recent

Ltd.

Seagrams Ltd.

Halifax Insurance

by the OPA that these increases
be cancelled on the grounds that

casts.
to

that

Commission

Commission of the recent demarid f-

pessimistic dividend fore-:
*, But
if anybody cared
pry he would have dis¬

pfd.

Railway

Electrolux Corp.

potentially one of the most constructive
injected into the railroad picture. For one thing,

hailed

being

developments ever

con¬

Instead -of

1942

showed

the.; Interstate ' Commerce

proposal v of

arrangements might be made to segregate the revenues derived
from increased passenger fares and freight rates granted early in

was

Bank StocksV

Fanny. Farmer Ltd.

chip of them all, experiencing ; peak earnings, no
longer need the additional reveTelephone. Here nues.

stock

& pfd.

Dredging

Pacific

Distillers
*

only highly regarded but was
cerned, this column said last recently pointed to as a bul¬
week
that
if
the
market wark, for it refused to go off
So far

Bulolo Gold

Canadian

they

American

Canada

com.

Crow's Nest Pass Coal Co.,

fluence

the

Canadian Investment Fund

advance.

point

Co.

Canadian

the 50 price than

Another stock in.

Tel.

Canadian Indus. A. B. &

began
press the market has? ac¬
complished three' things.- It going the rounds/ Yet it: was
has finally managed to poke noticeable that in the face of
statements
its nose " through the much t h e s e /cheeful
publicized 120 Dow figure; it enough Steel; offerings ap¬
has hesitated and refused to peared to check any .further
go

SECURITIES

REORGANIZATION

RAILROAD

forecasts of 60 and 70

Bell

Brown Company

chological" a;^
was im¬
portant for no sooner did the

As this week's column goes stock

-New York

Bell-Teletype—tfY 1-310

Telephone—DIgby 4^4933;

& pfd.

Corp. Ltd.

doesn't matter

com.
com.

Andian Nat'l Corp. Ltd.

(

Exchange

Pap.

42 Broadway

...

1931

Now York, N. Y.

BOwling Green 9-7949.
Teletype NY 1-1171

THE COMMERCIAL & FINANCIAL CHRONICLE

270

fire

That

Insurance

should1 have shown

Bank of

Insurance

Average & Composite showed an;
appreciation of
respectively, hardly seems: reason-r;

Unlisted Issues

Members

Members New York Stock Exchange
'

and

other

1 WALL ST.

DIgby

New

York

Stock

dividends

well

Bell

lli.

4*2525 :

Teletype—NY

1-1249-49

submarine
months of

losses
the

Bank and Insurance Stocks

■':

"before this"

X;'!/
i

•

Z..Z

iii!i

"py-BWreVftbc ■ Comiiion'

;,;.Zwja $

dec!

a red;

pa y able
to;.

"Zp
:; cti;1
^

stock-;

,4Kilders^.fi;e^jc4 Fehfoary Z" i|

-y[:

■

Checks will'he mailed,";

-•

Bank, Ltd.

V'Z'-Z';-..:;Giyn-'Miii*.-'&.,Cov'Z

shown, for th'e stock which,
went off mo$t was that of a ;bprne
pany which wrote no marine risks;

■.

*yAssociated Banks;

Williams- Deacon's

inconsistencies

ji!if

•J.

Slock *>f Zlli is;, <j!orliorat ioia

;Z;

£98,263,226
•

Tr-.|..

sh?

thirty-seven
:

64 New Bond Streets ffi: I

Administration;

strange

some

A di vidend of

; in';;

year,

..Shipping

ii"!
:■

2;";''

'> March

and also by the effect, of gasoline
and tire patfonfogZ
If;this4s; so,;
then

if BtlfaplgaU, 'E.C.

*;.

'.V^aiid;:oiie.-half^.cciitsl

type of risk was taken nvbr 4y:thbt
War

.-I

throughout Scotland I

S; ^Xhming Cms,, S. W.: I-;,;:
..»Burlington" Gardctis, ffl-i t

Z'Z; X
Evidently the market was in-fluenced .by fears of the elfect pf

A. Gibbs, Manager Trading Department";

;iiiZ

OFFICE—Edinburgh

LONDON OFFICES i

10%. Z r'T;-

some

HEAD
Jtranches

Exchange

BROADWAY, NEW YORK CITY
Telephone; BArclay 9-3500

NEW YORK

Telephone

120

leading exchanges

by Royal Charter 1727
ilii

Laird, Bissell & Meeds

XvvutaoK o.
,

were

incorporated

.sustained, only four of the;thirty
companies above listed : paidfouf
less than, in 1941, the aggjregate
reduction for thegroup, .approxik

Inquiries invited in all

Stocks

Dividends in 1942

able.

NOTICES

Royal Bank of Scotland

the * calendar year,; onfoyeragef,*
the Dow Jones Jpdiisftiai-

Stocks
Insurance

DIVIDEND

when

Primary Markets in
&

stocks

decline, foe

Bank and

New York

Bank

Ztbursiiayr January: 21Z1943

;

were

This Week—Insurance Stocks
The market price of fire insurance stocks ended 1942

;

lower

than

fractionally

year-end, as measured by Standard; & Poor's
weekly Index (18 stocks). On Dec. 31, 1941, this index was 105.9 and
on Dec. 30,
1942, 105.4, a decline of 0-47%.
As measured by Best's
index. (50 stocks) the decline: was from 179iFto 177.8, or 1.1%.. • ;;

When, however, the record of individual stocks is examined"

very wide difference in relative performance is found/ as the ap¬
pended tabulation, of the stocks of thirty representative fire insurance

''1

■

' •'

•'

'''

'•

Asked

'■

Price—:

Dec. 31, (94J.
.Fireman's

Fund

Franklin

Fir,e

Insurance

SiJ_

Or eat

American

Insurance

■

26.375

Change
+10.1

29.375

8.5

"\4''' 7.8

■

"i,'/

27.75

''•!:".-j-'. 8.6

,28.625

:.r;.

•

25.875

.11, J942

44.25

27.25

:: Per Cent

75.25

40.75

Home

Dec.

*68.375

„■

•

Juuimry 15, 1913
:

7.2

NEW SOUTH WALES
!.% Z; ; <ESTABLISHED

fei

MAKERS OF PHILLIES

•

illi!

Australia and. New Zealand

whose;::s|pck:

appreciated the
most; reported
of premium
writings in;
ocean
marine, the •: highest : per¬
centage in the group;; Other evi¬
dences of this inconsistency. are
as
follows;
United states Fire;
ocean
marine, : 17.5%, stock up
5.9%; National Fire: ocean marine
1.9%j'stock,down!- 7.8%.,
■;.
If; -we examine, motor ■ vehicle
writings, we also find inconsis¬
tencies.
For instance, Franklin
with 38.7% in this classification

28.9%

the. company

while

1941

TREASURER

Pliii.Micljiltia.I'n.

lSi7> V ;V;,.7'

j; Raid-Up GapitalvLwliwJ-- $8,780,000
^'Reserve: Fund!' L--!
6,150,000
Reserve Liability -of Prop* - 8,780,000

K' V£23410,000
i

Aggregate

Sept.,

foth

Assets'

1941

50,939,354

I a rn 1 cet in v of

a re g n

..(he Board of 1 )irectors

of The First Boston

Alfred davidson, k.b.e.;

sir

Boston,Lisuw|ami4.1'M3
Af

■

General

'7;..!

Manager;

Corpora tion he id oh

Springfield Fire & Marine„,..^a
United States-' Fire„„_„
-Manover 'Fire '^^M^

National

117.50

■*;

46.50

^^ 2

124.50

■

155

Hartfoj-d -.Fire

5.9

/v..

.-.

stock, • appreciation ■ of
Boston with / only
12.1% shows a stock loss of 14.8%,

+ :2.5-

33.125

+ .1.1

and

Noi'th River

Insnrance-_„„_!___

Continental
New

23.375

.y.',

Insurance

Fire

«fe

17.50

0.5

"■■■'

o.o

'42 ■■

Marlne___

17.50

'•'

Hampshire

•St.- Paul

23.50

•

American 'Equitable,

268

i-.'.v2733,

1.2

—

American

Alliance

;;'"

$8.25
■

'Z-

22.25

;

2.4
-

•-

21.125..

..i;.'■

5.1

—

That there

was

18%

branches

870

New Brunswick,

32.50

6.$

30.375

■'.

':>

however-

Falls

Security

„41.50

of New

Haven

38.75

40.125

;

37.25

-—6.6

7,2

—

total

;*nd

perhaps an at¬

January! 14,' 194.1,,

In Australasia.

Loudon, it offers the most completi

'and. Efficient banjting

service

LONDON

.29

OFFICES:

Threadneedle

Street, E.

;It Derkej-ey! ''Square, W.
^

Agency arrangements with Banks
throughout the 0, S. A. '
;:;'.!

NATiONAl DISTILLERS
PRODUCTS CORPORATION

tnsuaance

North

"National; Fire
Agricultural,

77.375 ■'

America.J__-___—_„_ U

"■

;

—

'7.3

•

7.8

!*--

: ^6.25

77.50

•

;•"'!

71.75

69^0

—10.3

ings allocated to these two classes.
of risks by each company in 1941,.
and plot these values on a graph
against the respective market acr
tion of each stock, a very. rough

N-orthern Insurance
Fire

97.50

.LVi

87.50

57.75

,l.

Aetna. Insurance

51.50

Association

JSosfeon

62.50

Bankers

«&1 Shippers

■

630

Insurance

537

—13.2
.

71.75

■

Pacific
.

Fire!

121.50

"Adjusted for capitalization eha-nge.

;

—14.8

■'

—18.5

;

•'i

THE MANUFACTURERS NATIONAL BANK
OF DETROIT
in the State of
of business

At the close

Michigan

;ZZ

December 3t,

t942

correlation is disclosed,

339,500.00

Real Estate

owned

other than bank premises
A_l-iZ-Z^t.ijZ,^ZZZZ

Other'''.assets

TOTAL

1)2,435,106.69
246,956.67
58,809.16

$339,933,343.44
L I A B I

Demand

deposits of
corporations if.
Time
deposits
pf

individuals,

deposits (certified and cashier's checks, etc.L.-_DEPOSITS
_L._ $329,243,451.51

TOTAL
Other

liabilities

LIABILITIES

2,278,406.21

618,596.58

$329,862,048.09

Capital stock,
Surplus

....

Undivided

APITA

common,,

A C C O U

NT S

total

Ti_

$3,000,000.00

.......

SyOOO,000410

profits

;■

1,496,295.35

■Reserves

TOTAL

575,000,00
CAPITAL

ACCOUNTS

TOTAL LIABILITIES

AND

10,071,29535

CAPITAL ACCOUNTS

$339,933,343.44

MEMORANDA

Pledged assets (and securities loaned) (book value):
(a) U. S. Government obligations, direct and guaran¬
teed, pledged to secure deposits and other liabilities
Secured

liabilities:

(a)

Deposits secured by
requirements of law

pledged

assets

—,—

pursuant

$31,766,76245

20,023,857.58

Penobscot
Mevher

HIGHLAND PARK

Building

Federal f>*no«it insurance Corporation

"RAILWAY .-bowtAVIS■■■:'! :P:/

:
' New .York, Dscembsr 22, 1942.
Dividends aggregating Three Dollars and .6rv-?
.

RESERVE fUND
^

it"'1;;.

H'lMiiiiii.'ii

''!-?'•LONDON

£3,000,000

emy-ove- cents

stock

tarred
have

(|J.V5l ner

Seuthern

share on . the preRailway Company

today

been OeCiared, payable Dne jjotiar.
arid Twenty-lfve ee«Tt« (8LSi5i March 15, 1543,"

.in

'•:

AGENCY

stockholders

record• at, the .-.close

busi-,

February 15/ 1913, One Dollar -ancl Twencents!. <$1,25). June 15. I943i to st^cicno.fu;rs a
record May 15, 1943, and One Dol¬
lar. mid 'iwenty-five xtentSi, <
.25l„ fieplcmojj". 15, !:
1943, to stockholders of record August 14, 1943,
Cheques in paymentN of these..dividends, wilL
ness

and

King

WiUiam Street, E, C,'

Branches

principal

Z'Z'-Z-

Toimis:

••

all

the

ty-five

-.I'd

EGYPT and

SUDAN %

the

mailed

addresses

all

stockholders of record

they appear

,oi\

at their *

the .books

the

Cooipaaiy-unless otlwwiae instructed- in:-writing,.!

s—

2.
.

•.*

•

MCCARTHY.

Vice President m4 Secretary,

Memphis Municipal

yii: forfo:firdfitabie 4ear.

Will the

:fo^ket--'!respond;■ %Z v-V-

in 1921 ;fo

.Z p:Zp

v/.

factors

must' be

con-

be
subjected to heavy ' marine
fosses through enemy actiofor since
this risk has. been properly Za?1
sumed by the Government; such
normal marine risks as they may

profitable.
Motor vehicle writings will shrihk
in volume, but should.prov'e
mdre;
profitable than usual, 'sinee' car
owners
today rare exceptionally
are

generally

Fire

losses

cannot 'be

predicted, but greater vigilence is
by ! propertyv owneri
when replacement is difficult and

exercised

costs,

DETROIT

are rising, although this may
partially offset; due to high
pressure
production
andV green
employees.
It is not improbable;

Offices
DEARBORN

careful

•

tnuascrf.* "

•'

£3,000,000

Railroad Securities

In appraising the prospects'of
fire insurance. stocks in 1943; 5a I

write

average pre-:

isidered.; The:

—

TOTAL

iyear reduction of the

'number

31,981,021.01

■

Other

past two decades, a condition that;
lias been reflected in a year "by

18,414,774.60

isOCTUUkfff

■■

■.

•

Men Form New Assn.

39,529,332.73
20,388,128.67

;

TIIOS. A. CLARK;

December 24, 1942

Cairo

;

$0.65 in 1941.

and

partnerships,

January IS,

•

mium rate from $1.05

corporations

:'"Z"3;'':;V

L I T I £ S

Deposits of United States Government-Deposits cf States and p ol i t i cals u b di vi slon s
Deposits of banks...

1942 were 2.33 %: lower than. (Vestment, occasioned by the in'^34-p—
,.r.,
r^v... 4^. ,
194.1, befog reported at; ,$314,- jcreasing, premium writings and
the lafge " proportion of 1942 net
849,909, compared with $322£5%
,909
reported for; the previous learnings
which
were %■ undis¬
Taxes will, of course,
year.
One of the ; encouraging tributed.
;
things about fire losses / is; their, jbe higher..
: ■ ;t]<
\ZZ
(definite downward trend over the
All in all, however, the outlook Z MEMPHIS- TENN. — MuriicipaT
in

partnerships.,;: and
$216,651,788.29

■

rcguht

!in

570,225.99

ASSETS

Office

FULLY PAID CAPITAL

rough attempt on

part of the market to : dis¬
tinguish between favorable; and
unfavorable factors, for fire losses,

1945, to stockbqldcrs ^f record

Z'f! .Commercial Register bio. -} Cairo I

five

Reserve.

Head

Board- of Dirrctors has declared a

1943. The Uaasfef books wiH hot close.

of EGYPT

4: /V.

„

The group of
whose
stocks

also indicates a

Loans and discpunts (including $8,566.78 overdrafts)
$33,556,440.65
tL S. Government - obligations, direct and guaranteed__
176,483,300.56
Obligations of States and political; subdivisions.:?
1,603,741.88
Other bonds,'notes,' and '-deb«nture«i_j.i,+LAwL^_i-ii;v^14,630,281 .54"'
Corporate stocks (including $240,000.00 stock, of Federal k',,
■
.

■/;

sixteen Companies
performed; better
than the avelage of —2.4%;.represented in the: main those compa¬
nies which had a higher percent1
age of their writings in lire; viz;
an
average of - 53.0%.compared
with 'an average of 59.5 %' 'for: the
fourteen coinpanies whose .stocks
performed below average.
This
i

ASSETS

Cash, balances with, other. banks, including reserve bal¬
ance, and cash items in process of collection^.________
Bank premises owned $246,955.67, furniture and fix. $1

NATIONAL BANK

■

REPORT OF CONDITION OF

'■

—17.5
;

,V-;'

The

quarterly dividend of 50^ per. share oh the out-'
siaodias iComuiou Stock, payable' otf Fi-hruary 1,*

—10.8

•

54.25'

;

—10.3

;

Vice President IS Treasurer

cent of premium writ¬

per

JOHN C. MONTOOMKRY,

.V."'v-

•

.!;■'

investors

travellers Interested" in ! thesi

countries.

dividend! oh
the *

''capital stock: of the -C<>rpo'rMti««'.
payable Jafluitry.fo, 194.1 to srockhoiders of record as of .the close of
business pit January 23, 1943,

With ova

Australia,

$] .00 per share was declared On

Wales Is the olde*»

all. States of

graders and

For when we take 4he

Street, SYDNEY

New Zealand, Fiji, Papua and New Guinea

■ -

GUens

banic

and largest

shows

■1

appraise the effect on fire for
surance companies of the subma¬
rine danger and of gasoline: and
tire 1 rationing
seems; ; possible^

—1.8
—

with

Glens Falls

stock loss' of f>.6%> ,;

Office:: George

The Bask of New South

JJ..; •'■

Average
Phoenix Insurance'

Head

tempt on the part of fhe. market

o.o

42.50

8.5%;' while

4.5

•+

■-

32.75

shows

;4:4.8

162

90.75

Providence-Washington

6.0

■'+

23.50

Union

4.9.25

24.625

Z <Continued from page 269)
eye to eye with the Commis¬
sion on1 such programs where the
jretirement of outstanding debt did
hot threaten > the. stat us of - a re¬
organization plan that was already
before the court; Gonsidering the
low price level of the general run
of reorganization bonds, applica¬
tion <>f large sums to their retire-'
see

ment

would

ficacious.

be
'''•

dealers of. Memphis have organized;

,a new club, The

Municipal Bond;

Memphis,-■ to promote1
closer cooperation ; between local,
Club

dealers in
ident

securitiesfleeted:Pres-'f

ofvthe new dealers associa-:

'tion was' M. Ames Saunders, head;
of M, A. Saunders &. Co., Iric-

Other officers of the club are
W. Oroom Leftwich:. of I>ftwiehf
:

Boss,; Vice-President; Joe H.;
Pavis of the Bond Department,
FirstNational ''-Bank] 'Secretary,:'

and G. Gordon Meeks of Gordon

Meeks

Company, Treasurer.
(
Eepresentatives of
15
of 18.
particularly ef- Memphis bond concerns attended
the ■' organization" meeting * at the1
,

By-laws
and!
a
question University Club.
legality • of any regulations were: adopted. Regular !
ruling of the ICG along the lines meetings- will be held each month, {
proposed, with "some objection be¬
Among firms participating in:
ing raised as to the usurping by the organization of the club were"
the - Commission of management Herman
Bensdorf
&
Company;'
There

raised

has
to

been

the

functions.
a

serious

ever.

This should not prove

stumbling block,

In the first,

how¬

place, the-rail¬

Bullineton-Schas

Company, j

Bond .Department/ First National
Bank,, Gray-Schillinalaw & Com-

■

in roads would almost certainly be pany:" Lefb"ich & Ro«s. G^don;
willing to follow a Commission Meeks & Company; Thomas Q/|
^'Suggestion"' along these lines. Galbreeth; M. A. Saunders & Com- '
panies are not liable for proven In the second place, it is notable nrny;' Standard SecuHties Com- :
sabotage.
As regards investment, that once before when:, temporary r-any; h, K; Thompson & Company, )■
Bond
income,
this may
possibly
be rate: increases were granted the and
Department,
Union
higher
due
to
the, augmented revenues therefrom were segre¬ Planters National Bank &' Trust
volume of funds available.for in-. gated a with- .the RCC.
Company.
\
therefore,

that

the

loss

ratio

■

1943 may compare favorably with
that of last year.
Insurance com-i

Volume

of Chicago

Midland Debs. Situation

May Soon Be Clarified
Debenture

The

Midland:

offer

feels

! both

company

Current Developments

plan of reorganization will
shortly be filed which may act to
increase the potential liquidating
a

issue, according to

the

Affecting RR Bond Values
Incorpo-:

Group,

Distributors

Wall Street, New York
City, have prepared a review cap¬
Co., 209 South La Salle Street, tioned "A Talk on Current De¬
Chicago, UL, members of the New

circular

issued

Cruttenden

rated, 63

velopments
Affecting
Railroad
Bond Values," which they would

Chicago
Stock
Ex¬
changes.
Copies of this circular,
summarizing recent developments
on Midland Utilities, may be had

York.

and

Michigan IBA Kead

glad

send

interested

MICH.—Charles

America,.has just named the

the Fipst Mortgage Income

date.

COMMON

UNION

COMMON STOCK FUND "B'
UNION FUND

SPECIAL

Prospectus covering all classes
of stock on request

nc.

conn

mittee appointments for the com¬

ing z

year.

Mr.

•

has served

Lord, Abbett & Co.

himself

Parcells

various committees

INCORPORATED

of the Investment Banking Group,

63 Wall Street, New York

He is head of

local and national.

CHICAGO

They have
also prepared a long-term chart,
upon request from Cruttenden &
of price versus interest coverage
Co. together with a memorandum of railroad bonds brought Up to
request.

dealers upon

STOCK FUND "A*

UNION

Chairman of
the Michigan Group of the Invests
Association

FUND "C"

UNION BOND

UNION PREFERRED STOCK FUND

U:N r O N

Co., newly elected
Bankers

UNION BOND FUND "B"

tec

Par cells of Charles A. Parcells &

ment

UNION BOND FUND "A"

ftii

Appoints Committees
DETROIT,

esting situation in view of the fact

value of this

which

attractive'-possibilities

"war" and "peace" stocks

as a

Co., which have been in
default since 1934, offer an inter¬
Utilities

that

and West-Towns Rail-,

Inc.,

ways,

271

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4144

157

JERSEY CITY

I.OS ANGELES

■

Investment Trusts
m

POTPOURRI

Republic of Chile

most

A
ment

■

Chile, Mortgage Bank of Chile, Water Com¬
pany

February 1, 1943, in accordance with .
provisions of Law No. 5580 of January 31, 1935
as
regulated by Decree No. 1730 of May 17,1938 and;
Decree No. 37 of January 4, 1936 of the Republic of Chile (which decrees are now consolidated into
Decree No. 3837 of October 24, 1938) and decrees',;
issued-pursuant thereto, holders of assented bonds of l
any of tf*-i above loans will be entitled to a payment
at the rate of $16.80 per $1,000 bond against pres¬

Parcells

Rural

Township

School District,

Elected

serve

entation' and surrender for cancellation of the two

corresponding to said payment

case

of .bonds which have been so

after .October

on or

■

stamped coupons

tlie

of bonds of the above

case

issues whichT

have not assented to the Plansaid payment

wj 11 he
made against presentation of the bonds with all
unpaidf coupons attached for stamping to evidence
their assent to the Plan

1943.
A

;

N'T

L-LL/-;; ,L/ :Y/V;

payment

in order to re¬
ceive the presently announced payment at the rate
of $16.80 per $1,000 bond, and presentation of bonds
with appurtenant coupons for stamping, should, be
made at the office of the correspondent of the undersigned in New York City. Schroder Trust Company,^
Trust Department, 48 Wall Street* New York, N. Y.y V
together ,with

„

in the

case

of dollar bonds

City-of Santiago and "the Consolidated Munici-C pal Loan copies of,the Prospectus, may be obtained %
at the -office'of.;sai'd;cor.respphdent;
.Ah"•

of the.

When/requesting*letters..of; transmittal,*-kindly

indicate whether the letter1 of transmittal
in' connection with

is'to be-

the

presentation for, pay¬
ment of coupons which have already been stamped,'*
or in connection* with "the presentation 'of- bonds and
coupons which have not •been'so stamped. • In the "
latter case, kindly indicate whether or not the letter0
of transmittal is to be used in tendering bonds of the

used

City .of Santiago
Loan.
CAJA

the Consolidated Municipals
*
'/'•■ ,

AUTONOMA DE AMORTIZACION DE LA

(Autonomous Institute for tlie

DEUDA PUBLICA

Amortization of the Public Debt)

Manager

Santiago, Chile, January 15, 1943.

ALBERTO CABERO,
President

and
all,

36 issues have been added and 22
issues

have

been

eliminated.

Co.; Harold R. Chapel,; Europe.

As background material

Shan-! for the introduction of such is¬
non/of Miller,/ Kenower & Co.,I sues at this time, the sponsor is
and Douglas H. Campbell of First making available to dealers copies
of^Michigan Corp.. Legislative—j of an analysis by the investment
Philip K. Watson, Jones B.

Hill

Gordon

of Watling, Lerchenj

banking firm of A. L. Stamm &
and Ralph Co. jin which the position of for¬
Fordon of Watkins and Fordon.i eign^ dollar bonds is discussed at
Education
William
Adams
of; length. ;
Braun, Bosworth & Co., and John;
The latest issue of "Investment

& ' Co,;

Ralph Khuen

Meetings and Enter-j Timing" discusses the "Economic
tainment. Committee—George C,
Implications of the President's
Dillman '.of Harriman Ripley
&; Messages." Although coverage of
Co.
Business Conduct Committee the; subject is necessarily brief,
—Douglas H. Campbell. Member¬ the following conclusion is well
ship—Jones B. Shannon, and Pub-, supported:
"The prospects for
Arends.

The Investment Banking

y
j business, with,'war' and 'straddle'
Group industries making the best earn¬

devoting considerable time to:
the sale of ; Government bonds.
;
are

unchanged.
These prospects, with due regard
foT coming post-war adjustment,
showing,,

ings

are

should :be reflected in the.

Boston Traders Vote
To Omit Annua! Dinner

securi¬

/'where,"- however,
'peace' industries, will have the
underlying support of assured vie*.
tory, possibly"within two years."
markets,

ties

'•

i
#
0
"
m
'BOSTON, MASS.—Bv a poll of
the Governors of the Boston Se-i
The'most recent issue .of Lord.
Purities
Traders
Association
it: A'bbett's "Union Dealer", quotes
was: unanimously voted to accept the
Cleveland
Trust
Company
■

the-suggestion of the Dinner Com-;
mittee

that

the

Winter Banquet

be.omitted this year.-

This

on the railroad situation.
those who happened to miss

Ejulleljn
For

...

annual dinner ing excerpt:
1 "When "Hitler massed his
and it was the consensus of opinon that it be abandoned until such

teenth

time
are

consecutive

as many

of the members who

in the Service might be

with

the

association."

back
i.

with

continually im¬

column

pressed

high

the

standards

quality and impartiality main¬
tained in the economic discussions

regularly published by leading in¬
The

vestment company sponsors.

"Background,"

issue

January

marine attack against
coast

Abbett has commenced
with a set of freshlyincluding the
Summary
folder on
Composite
Union Trusteed Funds, a "lever¬
age" folder and a Summary folder*
Lord,

the

new

year

revised dealer helps

Affiliated Fund.

The
stone

past

*!«

■

phenomenal growth of Key¬
Custodian Funds during the
have caused some

may

year

people to lose sight of their over¬
all growth record.
the

This record ii?

"Keynotes."
Since their first of¬
fering in May, 1932, these Funds
have,
in the
aggregate, shown
steady growth in every year but
one,
1937, to reach their present
total of over $43,000,000,
Despite
the excellent record in 1942, perf
centagewise, it was not the best
year
for the Funds.
For that
one must go back to 1938,
another depression year,
during

record

which

Funds

the

doubled

value

crease

of about 50%

compared

vestment

asset

net

with

in¬

sales

in 1942.

In¬

sponsors

company

unusual

meet

than

combined

who

resistance

years

ijs

for

s-e

"Perspective"
reviews the major

Bullock's

Calvin

January

events of 1942 and looks ahead to

1943 may hold.
disposition to play
the role of military prophet, but
the

what
"We

year

have

believe the weight of the force

that

shall be able to

bring to

last

Spring

our

bear this year

cessful

will make the suc¬
conclusion
of
the
war

clearly visible by the year-end.
"We have

market
But

little taste for stock

for military

prophecy.

military power of
Nations, the favorable

the rising

the United

(Continued

page

278)

sub¬

Eastern-

he clearly

ex¬

pected to stop our coastwise ship¬
ping, to prevent the shipping of
coal to the industries of the New

England states, and to make im¬
possible the shipping of gasoline
Situation Attractive by tankers to our seaboard states.
He largely succeeded in all three
Z The current situation in Portland
Electric Power 6s of 1950 offers of those objectives, but the resul¬
a

tant paralysis of business and in¬
Scherek, dustry in the East, which must
Landreth Build¬ have been expected, did not fol¬

possibilities' according

circular prepared by

Richter Company,

ing, St, Louis, Mo. Copies of this
interesting memorandum may be
had from Scherck, Richter Com¬
pany upon

request.

low.

The attack did

because

not succeed

the. railroads

took- over

the seaboard trade, the coal traf¬

fic,

should examine
carefully the Keystone record.

depression

Portland Electric Power

the latest issue

subject of

1 sbeing the comments referred to,
"This, would have been the nine¬ tie reprint the following stimulat¬

attractive
ALFONSO FERNANDEZ,

war

appoint¬ ries which include issues of Den
Securities— mark,
Poland,
Jugoslavia
and
Harrison" E. Thurston of Watling,! Greece
on
the
Continent
of

coupons

appropriate '■ letter oftransmittal. J

Letters of transmittal, and

both

have been added.

Harold R. Chapel
Complete details are given in a
Bennett, Smith & Co.;: memorandum available for distri¬

licity—Harold R. Chapel.

stamped

diversified group

ments lare: Municipal

H.
t

detailed notice

Presentation of

but to the railroads."

tribution.

peace,

Co.;

Lerchen &

our

of securities which should benefit

eliminated and

been

—

before December 31,

;

concerning the.presently
will be furnished with form
transmittal/ : •; "9
y ^
: ; ' 6: ■■■•/.*,/• >

announced
letters of

the officers and Jerome Keane of;

—

victory in the battle
of the Atlantic not to the Navy,
owe

from

have

The various committee

stamped -'

corresponding to said payment under the Plan and'.
the bonds need not be presented.
;
't
In

Reginald;

issues

•

against presentation and s'tir- ,v

render for cancellation of the two

Blyth

field.

company
—

discussing "The ABC's Of Ration¬
ing On Our Economic Front," is a
good example of this type of con¬

favored

Allen,

Co., Secretary and Treasurer. The
Executive Committee, consists, of;
&

Research

thorough¬
1 going revision of the portfolio of
-First Mutual Trust Fund.
Many
with Parcells.
war

MacArthur of Miller, Kenower &

Keane

Securities

Curtis; E. R. Watkins of Watkins tional Securities. Series is also
& For don, and Philip K, Watson; available.
of
Campbell,
McCarty
&
Co.,;
Of
particular interest are the
Governor;of the Michigan Group.! additions to the International Se

24, 1938, the presently announced %

payment will he made
'

our

National

invest¬

come

<j>

Ralph Khuen of First of Michigan; bution
entitled,
"Portfolio
Corp.; William Moore of McDon-j Changes."
A similar memoran¬
aid, Moore & Hayes; John Arends dum setting forth the recent port¬
of
Paine, Webber, Jackson and folio
changes in the various Na¬

will be made only in respect
of bonds and coupons which have been stamped with
appropriate legends to ' indicate that ; they have
assented to the provisions of the aforesaid Law and
Decrees (hereinafter referred to as the ;"PIail").
In the

■

that

Agricultural; Corp. has undertaken

Co., Vice-Chairman, and

of Crouse,

;

The above payment

Alonzo

are

and:
Pointe

Co.

Grosse

the

President

Parcells

coupons

rica has placed the United

Charles

On and after

forth in letter of transmittal.

■ ■

out

enemies in North Af¬
Nations
in a position to win the war much
sooner than was believed possible,
part of

Loan

the

set

the

the unex¬
lack of resistance 011 the

pected

Charles

stamped

*■

Pointing

of Valparaiso, City of Santiago, and

Chilean Consolidated Municipal

title " and

the

challenge-the ingenuity of- the investment

Republic

by the

to hand. "Investors'
presentation of the material should

banking firm of Estabrook & Co. has

Almanac"

Notice to Holders of Dollar Bonds of the

pocket-size brochure issued

attractive,

and

the

gasoline

shipments.

Prospectus
from

The

may

authorized

PARKER

ONE COURT

be obtained
dealers,

CORPORATION
ST., BOSTON

THE COMMERCIAL & FINANCIAL CHRONICLE

272

(V'(

?■ •*

The entire issue of the bonds,

March

15,

1943 at

and

par

Harbor,

"Beginning 1942 with

rising

trend after the Pearl Harbor de¬

the

cline,"

"the

cure.

April

July

and

prices

May,

then

the market kept within

narrow

From

strong.

were

Except for

range.

brief gain in October,

municipal
averages showed a slightly de¬
clining trend from August until
the

end

the

But

year.

was

Secretary

Henry

se¬

the

Morgenthau,

;

of the Bank

man

The

State's

of its

total ° indebtedness

that

on Jan. 3,
last/including highway
obligations taken over from the

economies

$4,920,000 Bonds

stated

Cooper in

materials

costs

1942.

despite
arid un¬

expenses, such as the
ployment of auxiliary guards.

em¬

Cautioning against "drawing
hasty conclusions from the total

pre¬

line

bonds

This is

be. received

figures,"
Mr.
Ferguson
emphasized that although gaso¬

mere

formality,

trict bonds

quoted well in

are

rationing

duced

of course, as only tenders of
par
or less are
acceptable, and the dis¬

1943!

$600,000

accomplished

1942

the

Jan. 26.

intro¬

not

was

until

May 15
decline
in

traffic

last,

the

J/&
rationing period was
27.6%, while the failing off for

months

ex¬

cess
of par.
Accordingly, as in
previous instances, no tenders are

debt

operations resulted
of

usual

liminary to the actual call notice,
district is asking for tenders

message delivered at

the opening session of the
Legislature on Jan. 5. The

was

rising

the

by Governor Prentice
a

saving

counties, amounted to $107,012,608,
representing
a
decline
of
$19,261,326 from the aggregate of
$126,273,934 on Jan. 16, 1939, it
was

This

refunding bonds optional on
date, but; which are not ac¬

tually due until 1955.

Authority, the Chair¬

reserve

district is expected to call
for redemption on March
1, $4,.920,000 of the total of $6,099,000

$23,500,000 Bonds in 1943-44

ear¬

said, started 1943 with a bal¬
of $11,620,000 in the
general
fund and pointed out that

ance

The

Tennessee To Retire

;

The Port.

Chicago Park District
To Redeem

Dominion Government.

municipal

outstandings

Jr., began

moved cautiously forward. June
and

Treasury

Jan.

March,

notes,

survey

status

market fell sharply
until Feb. 18. In

municipal
from

the

comparable figure for the
lier year,

ipal light
and
powetf
revenue
bonds has been canceled.
A new
call is expected soon, he added.

of Montreal, fiscal agent of the

market began to rise in January
on the assumption that
the tax

The

purchase of $7,900,000

exceed 6%' interest munic¬

to be redeemed at the

are

New York Agency

William J. Riley, of Paine, Web¬
| insurance companies in the latter
ber, Jackson & Curtis, New York ! months of the year gave the
City, in his recent commentary on municipal market a great weight
the course of the municipal bond to carry and slightly lower aver-,
market in 1942, points out that ages resulted.
municipal bond averages in that
"In 1942 the attack on ta;x ex¬
year
never recaptured
the allemption of State and Municipal
time highs of October and Novem¬
securities
was
vigorously and
ber, 1941. As in earlier years, Mr.
persistently renewed.
Recov¬
Riley has recorded in chronologi¬
ering from the confusion after
cal form the market highlights for
Pearl

the

not to

ac¬

crued interest to that date.

bonds

for

{ which mature May
1952, have
been callied for redemption on

Municipal News & Noles

each of the 12 months.

Thursday, January- 21, 1943

the

whole

less

than

year

only

was

18.3%

1941.

fylr. Ferguson
16, 1941, was $110,041,956.: expected and the next logical
played a leading role in shaping
ary 24 to render all municipals
i In
addition, the Governor contin¬ move is believed to be the issu¬
and executing the Port Author¬
taxable that continued until the
ued* the State will be able to retire' ance of "the bond pall notice. The
ity's pioneering program in the
Senate, on Oct. 8, rejected a
the
$23,500,000
of
bonds
ma¬
balance of the $1,179,000 bonds
revenue
bond field
and
is
a
proposal
to
tax
futures.
Of
turing during the next two years. optional on the March date
prominent figure in New Jer¬
wifl be
course, nothing final attaches to
"In
my
opinion," the Governor reduced on Septal, according to
sey banking circles.,
that vote," the article warns.
said, "the principles that should; report.
Any ."prognosis for 1943 is dif¬
govern Tennessee's financial polf!
ficult," he observed/as t1942.ex¬
j
The J>qnds scheduled for early
Bank Offers To Buy
*
icy during 1943; and 1944 are. as,
perience demonstrated, that condi¬
.retirement include refundings
'
■' •*;"
Called Canada Bonds
1 follows; >
tions are subject to rapid
series A and B, dated Sept. 1,
change.
"1. To continue to hold the exThe
Agency of the Bank of
1935, and series C and D, dated
"Thus,.for,reasons of military se¬
penditures within availabil- t
March 1, 1936.
Montreal, 64 Wall St., New York
curity, no one could foresee that
Redemption of
ity, thus keeping the State ;
oil and gasoline would have to be
City, has been authorized by the
the bonds will cut the district's
Dominion government to purchase
budget in balance;
bonded debt from the present
siphoned from East Coast stocks
the Dominion's 30-year 5-% bonds,
"2. To continue to protect the
in
level of $81,709,700 to $77,419,order
to
supply our armed
for delivery on or after Jan. 20,
State's eredit by paying off
700. .: :
forces in Africa'.
■
•
All we can do
• • /
at prices to yield % of 1% from
all indebtedness promptly as
at this time is to estimate where
campaign

Janu¬

Jan.

"The

huge 'Federal borrowing
for the prosecution of
the war in the past year narrowed
the market for municipals.
Many
necessary

was

j
exemption!
unimportant sold them in or- j

holders

whom

tax

der to buy Victory Bonds.
Large
scale switches to Treasuries by the

date of

it matures;

delivery to March 15.
"3.

issue

refund
"4. To

bonds and

new

taxes,,

new

raise

the

liquor, which

ex¬

tax

Cooper

the

'■£

stressed

guson

declared

of essential

exercise

This

the

most

rigid econ¬
omy, since the State is now con¬

the

•

essential

vehicles

with

mm* v
v.v.fw

traffic, he said, is

because

including

Status Summarized
The

State's

■

operating

revenue

lections
of

of. the

Finance

State

and

coming

lections

full

bomber-gunner hurrying
load his 50-calibre gun.
■

Here's

:|i|. 1

lot

revenue

year

collections

far

for December

are

That's why we
lines

right now.

Dec.

can't build new
That's why we re

31,

months

1942,

"Total
for

nue

now

ending

months

all

;

"You will
about

seven

•

hope you

all your

will keep

Federal
&

211

•

have

Mid

help

Kansas

Federal

215

South

Northwestern

•

Oak

•

823

tax."

balance

Buhl

Tennessee Funding Board

reports

Peoples

;

The

•

St.
'

$17,874,653

•

in the State

sinking fund on Nov.
30, according to the statement of
WAMI

CALLS

Tennessee Taxpayers

r>*

•

St.

Loan

Association

Detroit

Avenue, Wewoka, Okla.'•
Savings and

Loan

Association

Wichita, Kans.

Federal. Savings

Loan

Federal

Association/

Savings & Loan Association

Marion

Federal

Street, Oak Park, 111.

Savings and Loan Association

Building, Detroit, Mich.

Paul

Detroit

.5;

Federal

Savings and Loan Association of Chicago
2116 West; Cermak
Road, Chicago; 111.
•
•" v J
• 'J

Paul Federal Savings and Loan Association
Fourth

Wabasha Street,

St. Paul, Minn.

•.

San Francisco Federal Savings and Loan
Association;
705 Market Street, San Francisco, Calif.

•

Association.;

•

Marquette Avenue, Minneapolis, Minn.

Park

104 North

$200,000 includ¬
slight collection on gasoline

William Street,

•:

ing

Savings and Loan Association of Wewoka

South Wewoka

I would guess the total collections
on all revenue for that time would

anj we

Savings

Lafayette, Detroit, Mich.

First Federal

;

;
we

First

;Gr is wold

are

understand

V•'.•••-:

•

days of collec¬
tions to be added to the
figures,
above mentioned for this
period.

remembering

Below we give a record of the
major, offerings, included-in the

84 Main
Street, Danielson, Conn.-—Write for free booklet
.//and information.
'

amount to around

Thanks for

■

Danielson Federal Savings and Loan Association

reve¬

for the six months.

absolutely necessaiy-

',V'lVi'
•

„

Street/Salt Lake City, Utah

$11,974,561.34,

are

collections
six

Major Sales
Scheduled '.;

American Savings & Loan Association
"
17 East First South

•

$24,437,863.12, an increase of $626,886.64,
or a
percentage increase of 2.63%

Distance

it's

six

•

a
decrease over the six-months'
period of last year of 7%.

gayin"—"Please don't place Long
calls to war-busy centers
unles9

this

"Chronicle" of Jan. 18, page 211.)

When doing so please mention the "Chronicle."

the full month of last year.
"The total gasoline collections

for

obligations.

(Mr. Ferguson's report was re¬
viewed
in
its
entirety 'in the

investors, trustees and "other* fiduciaries interested
in becoming acquainted with the
Federally insured investment op-,
portunities offered by savings and loan associations should write for
current explanatory literature to the
associations mentioned below.

over

needed for

1 >

Individual

crease

phone lines. Now . it's
shooting and winning t e

1943

Investment Funds

;

the

of $385,-

$3,-f
510,342.56 which represents an in¬
of. $343,441.46
or
10.84%,

of tliat copper

the

A Safe Haven For

which;

over

20.45%.

"The total
all

increase

of last

de¬

Fund

gasoline col¬

$2,270,053.56,

month

491.15,

are

represents

under

"So far this month

to $7,142,510,
a
$1,600,000 below

cline

after

interest

Reserve

Departmentj

Taxation,

date ©f Dec. 23:

Authority

expenses and

amounted

position is broadly summarized by:

wire

Port

$16,144,048. " Net .income

general

the following statement made by
the Division of Accounts and Col¬

Telephone

the

If,

conditions

50% decline in traffic,

meet current

de¬

Commerce Building, were about

hand,

be necessary to with¬
$1,225,000 from i the Gen-

eral

Tennessee's Revenue

other

would

amounted

■

al¬

1943

000,000 and a prospective accum¬
ulated.
surplus
in
the. general

of its

some

draw

$14,jl45,828,

had

Authority

cause

cline, of 15.3% ffom 1941, ac¬
cording to preliminary figures.
Gross revenues from all sources,

the

prepaid

the

reported that
alone in the period

fund at the end of this fiscal year:
of $4,500,000."
:

year

sinking fund requirements.

toll

current

ready

| Mr. Ferguson
revenues

the

traf¬

Authority

surplus would be possible only

25,009,845

he said, "resulted in a sur-i
plus in the sinking fund of $18,-;

years,

end

the

balance of approximately
$500,000 over all operating ex- ;
penses and debt service.
This

which used the bridge
$10,000,000 annual
loss in revenue, due to gasoline; and tunnel crossings operated by
the authority in the past year, as
rationing and other .war meas¬
ures."
Rigid economy in State compared with the 1941 peak ag¬
operations
over
the
past ' four1 gregate of-30,600,567.
fronted with

40%

drops

should

large volume

traffic moving in
York-New Jersey area.

New

various

normal operations, if 1943

fic

war

reflected in the total of

under

Taking as a base the revenue
figures for 1941, the last year of

the

"Authority dur¬
ing 1942, Chairman Frank C. Fer¬

"that these principles can only be
made effective by the continued
X- >

operations

Port of New York

of the

one

stand

assumed traffic conditions."

making public last week

review

lowest in America."
Governor

•

would

Authority Reports
Operations

1942

old ones;

levy

cept

Port

Standard Federal

COME FIRST

mRm
BELL

i/STSM

TELEPHONE

SYSTEM

WUf

Seattle, Wash., Cancels
Bond Offering
1.
W.

Thomas.

Citv

Savings and Loan Association

-735 South Olive Street,.Los Angeles, Calif.

;

Twin

City Federal Savings and Loan Association
Eighth & Marquette, Minneapolis, Minn.
■
•

Comntrol-

ler, informed us that "because of
possible
changes in
design of
work," the call for bids on Jan.

"Guardians,

Insurance

companies,

State,

firemen's, police and other pension funds, etc:

school
~

and

municipal

sinking

funds,

Volume, 157

;■

Number '4144

sales.'

calendar* vof» forthcoming '

*HE

Insured Investment

generally speaking, -are

these,

interest to

loan

similar

the

recent

comparable

Sons, and Associates.

H.'Rollins

Second

for

State

MINNEAPOLIS, MINN.^it has

been

Main

announced

.insured

Loan

offer,

the

Federal

investments,

association

vestment.

liberal, return on-in¬
Current

dividend

rate

of 3% per' annum. <

American

Association,

Savings
17

East

and

South

Widder

Loan

First

Street, to

send

curities

request

investors,

other fiduciaries in¬

Co.

with offices

Street, Salt Lake City, Utah, will
upon

Tho

Financial

Chronicle)

has

—

been

at 601 >North

engage

business

Johnformed

Eighth

general

Partners

se¬

are

termined,, subject "to. > approval "1 of

trustees

stockholders I to close1 -fts ■ business

teresting data explaining the de¬ Widder.

and, terminate its corporate

de-j

unusual opportunities |!or

(Special

SHEBOYGAN, WIS.

sirability' Of' 'investing" funds in
irisiired Federal Savings, and Loan

schmider & Co. and prior thereto

investments.

with

tence.
was

Wells-Dickey

established in

1878,

•'

•

exis-.

<Company

Minneapolis in
V', '

7''1"

and

Current"

dividend

John

Widder
Mr.

Betty

was

form¬

Heronymus,

with

the

and

Widder

Ball-

Citizens

State

Bank

Sheboygan.

Maricopa

these

bonds'will

Treasurer

Co., Ariz.
be

received

the

behalf, ,of. the,county

-February 9 '■

John Widder & Co. Formed

February 1

$4,100,000
Bids

Savings

made

bid

by,Stranahan, .Harris & Co., group.

;

Federal

•!

that the board of directors had de¬

271

In Insured Investment

Association,

safety and

went

by Stuart W;
Wells, president of Wells-Dickey
Company, Metropolitan Building,

Clares,

January 26
previous issue

• r i 1 ••

Loan

■

$400,000 Troy, N. Y.
Last

and

made
! •" which

size

•

■

The Danielson

Savings

past.

particulars

$675,000 East Chicago, Ind.,
•

With Liberal Return Close Investment Business

Street, Danielson; Conn., will be
glad to send a booklet and full

the. trade.

January 25

Sanitary District.

FINANCIAL. CHRONICLE

WeltaDickey Cpmpainy To Sayings Earn With Safety

Gur tabulation is restricted to is¬
sues of general market interest
and does not include note issues'

COMMERCIAL

$1,600,000
Baltimore
Co.,
Md..
"Metropolitan District Bonds.

•Last

offering of similar bonds was pur¬
by. -Alex, Brown- & Sons, Baltimore.Associates, the second high bidder be¬

chased
and

ing

the

Mercantile

.Syndicate.

Trust

Co., .Baltimore,

•

Hoover Will Address

Conference Bd. Dinner
An address by -Herbert Hoover,
President of the United

'former
States

and

recognized authority
production and distribu¬

the

tion of food in

the

ture

wartime, will fea¬

general

session

the

248th

meeting of the National In¬
dustrial Conference Board at The

Waldorf-Astoria, New York City,
tonight (Jan. 21).* Mr. Hoover

was

When the

Food Administrator in the Wilson

insanity of war has

run

its

course,

Administration during World War
I, and was also Chairman.of the
United States Grain Corporation,
.the. United

States

Sugar

Equali¬
-

zation
Food

Board

and

Council,

period.

•

the

all

"The

when brave

men,

proud and victorious,

come

same

Wartime

tural Situation" is the

;

Interallied

of. the

home

Agricul¬
topic of the

again to

city, town and farm in America... when this topsy-turvy

every

general session which is expected
to resolve itself

largely into

jigsaw world is ready to be put together again

dis¬

cussion of the production of food¬
stuffs in the United States under

conditions

now.

distribution

life insurance will still have

existing and their

both «in .this

job to do

...

in those brighter tomorrows,

bigger job than

ever

in the past.

country

and, largely through Lend-Lease,
throughout.the world.

Not

/ '

even

global

war can

repeal the first law of nature, which, is selfi }
1

In
C.

addition

Mr.

Hoover,

preservation. Nor

Teagtie,. President of the Na¬

can

all the hell of all the battlefronts destroy the fibre of

tional Council of Farmer Cooper¬

atives, and Albert S. Goss, Pres¬
ident

will

The

National.

address, the

Dr.

Virgil

the

family devotion which is the

session.

for which

Jordan, President of
Board, will, pre¬
meeting." :

the

Harbison &

new

and

Gregory

ANGELES,

investment firm

date the investment

merly conducted
son

Co. and R. N.

Partners of the

Gregory & Co.
new

The Stock .Deoartment will
V.

by J. G. Henderson.
Hull, an officer of R.

-N. Gregory & Co., will be cashier
of the new firm.
•

•

grow

old

long

defending home solvency,

else,
.

and die, if need be.

-7;o

job for life insurance,
or

die,

long

Green.

Street,

Pasadena,

direction

America

she will find her home

For

than

journeys onward, down through the corridor of time,

solvency flanked all the

by her life insurance

NEW

ORLEANS, .LA.—Charles
E. Corrigan, Jr., has opened offices
in
the
Masonic, Temple
Building, to conduct a general investment business as successor to
Brown, Corrigan &'Company. Mr.
Corrigan was formerly a partner
in Brown, Corrigan & CoM and

prior thereto .was an officer oL its
predecessor W.,Edward Brown &
Co., Inc.

men.

century she has depended upon them. She w/7/depend upon

them, always. She must depend upon them.y
A vital

way

job to be done... trained

men to

•' "j/

do it.. !

men

Formed Own Business

money,

fitted to do.

Calif.,

Ross

C. Gorrigan Jr. Has

born

are

job which life insurance, better than anything

-Boore.

babies

bread is bought with

Harbison & Gregory will maintain a branch office at 385 East
under " the

fathers and mothers love their children. Always there will be the job

And

firm will be

Gregory & Co.," will be in
charge of the investment depart¬

William

women

business for¬

of R. N.

ment.

and

—

by Dunk-Harbi¬

R. N. Gregory and McClarty Harbison
both members of the Los

be managed

men

of Harbison

Angeles Stock Exchange. Warren
B. Bailey; formerly Vice-President

fight

CALIF.—The

&
Gregory, 210 West Seventh
Street, has been formed to consoli¬

men

Yes, there will still be

Is Formed In L. A.
LOS

•

brave

our

and woof of the American home, the shrine -

Conference

side

warp

Grange,

dinner

LIFE

INSURANCE COMPANY

SPRINGFIELD, MASSACHUSETTS
BERTRAND J.

PERRY. President

keeping the faith.

Federal
Bank_u-.--i

11,220.33

Moines
U.

23,500.00
75,534.00
4,817.64
734.99

1-.

Bonds-;

Government

and Fixtures

Other Resources--

Cash

Profits

dividend rate

current

MINN.

Investments

From

Executive Secretary

Axel A. Olson,

Washington

St. Paul

Minneapolis
Condition

December

31,

1942
LIABILITIES

ASSETS

Loans and
_$ 16,1 29,438.70
Loans Secured By Pledge
of Accounts
16,456.07
Federal Home Loan Bank
Stock
160,800.00
U. S. Government Bonds—
1,780,941.00
Furniture and Fixtures37,000.00
Real Estate
Owned19,689.09
Cash on Hand and in Banks
606,172.07
$18,750,496.93

Total

Contracts

Total

————

Reserves

semi-annual

dividend,

been

has

current

The

maintained

since

414,186.07

—

——

Profits

Undivided

267,471.20

—

137,458.16

Mortgage Loans in Process
Liabilities

Other

14,138.23

——

—$18,750,496.93

During 1942, Twin City Federal enjoyed an
increase
in
members'
accounts, of
more

1943. investors in Twin City
received
the fortieth consecutive

None

Bank--.

Loan

Home

On January 1,

Federal

from Federal

Advances

gain exceeded
recorded in 1941.

increase

$3,300,000

the

This

$3,500,000.

than

rate
1936,

TRUSTEES, EXECUTORS, CORPORATIONS, INDIVIDUALS
and OTHERS are invited to invest here.
FEDERAL INSURANCE UP TO $5000.00
HIGHER INCOME

man

wanted

meet

was

really

Borah.

demand

resentful.
Certainly it would

he becomes

papers,

it goes.

that two

men

could not be

closer than Mr. Roosevelt and
But there is a lot of

Churchill.

battling of wits between them be¬
hind the scenes.,
It forebodes the

holy

mess

that

will

Money

juist

have

develop

wanted

the

for

ple

during 1941, but after the ban

1942,

paid

38th

our

31,

V
received

Our Savings Members

dividends

consistent

PAID

HAVE

each

since

year

organized in 1923.

You

received

Funds
earn

by 10th of month

from

full

Enjoy

can

insured

safety—liberal dividends. Your

of month

1st

too,

account is federally
to

STANDARD

insured

Invest

$5,000.00.

your

lending which

Houses they decided to

is left to do.

available properties
Another

the

For

tics

zen,

mort¬

home

been

a v e

o m p i 1 e d
carefully
by;

time

get

32%

further.

the

cause

the

■-

735

Los

South

Olive

Angeles

•

Street

details)-

for

(Write

Ml -2331

17 Cast First South St.

SALT LAKE

which

To Address

Analysis
On Beveridge Report

The

January

general luncheon

meeting of the New York Society
of Security Analysts, to be held
today,
Leo

will

addressed

Wolman

The

by Dr.
Beveridge

Report.
Dr. Wolman has studied
The
Beveridge Report and his
findings are about to be published;
he
will
analyze this
program,
which
may
well influence the
course
of history after the war.
Dr.

Wolman

Professor of Eco¬

nomics at Columbia

member

the

University,

staff

the

Na-

tional

Bureau

search and is

Economic

authority

Re¬

labor

problems.
The

com¬

Society
12:30

will

Lunch

Club,

meeting of the
be
held
today at

the

Block

South

Street, New York City.

Hall

William

Reserva¬

tions

are
handled through Miss
Byam at the office of Dean Lang-

muir

chairman

committee

the

(Bowling

program

Green

9-6375).
On

Friday, Jan.

Arthur

Hopf,

22, Dr. Harry

the Hopf

Insti-

homes

be¬

attempting only to
and

not

stop

restrictions

are

placed on

property by any of the

agencies in Washington.
*
Some refinancing of'loans held
other

will

mortgagees

take

place this year as it always does;
The savings and loan associations
in .1942 made about 15% of their
dollar
volume
of loans to
re¬

obligations which the bor¬
would rather have with

finance
rowers

specializing in
than where they

local

institutions

home

financing

originally been held. Moderni¬
and repair' loans may well
total continue to 'account for 3 vto. 5%
had

zation

of dollar volume,

source

these

and miscellaner

for borrowing on a
piece of property will come.in for
somewhere from 8 to 10%= of the
loans this year.as usual.
;
All of this • optimism about the

ous

purposes

not loom so

his

friends, adver¬

(

-The next question naturally is
campaign for re¬
kind
of loan
business' it
He has a quiet way of what

getting things done, and he does will be. We conndt expert much
workmanlike job:
It ; wasn't a
case of the President's taking care WPB
of a lame duck in his appoint¬
plans1
many instanced
ment.
Brown has long had a suc¬ and deciding that they are vmneclaw

would
have really preferred tq return to
it than to take the price adminis¬
trator's job.
It was his feeling
that the President simply wanted
to

take

practice

and

job for
tute

partner

Such scrutiny may hit the
housing program at any timef

essary.
war

and decrease the

tions

houses.

present expectaf

limited production ol
In the last months of 1942

for

lending than we now
in
1943.
But if the

contemplate
restrictions

the
lending agencies
as well, so that we still can look
forward to being the chief home
they will be placed on

come

other

mortgage

lending

try,

institutions in the coun¬
matter how limited the
all

field

for

prove

the

lenders

to be.

may
».

Court Flays Stock
Paul R. Neuman, a

Salesman
stock sales-

land live liundred dollar fine: by

Ward> Jr- m Buffalo, N. Y., on his

plea of guilty to perjury in testi¬
fying concerning securities trans¬
actions at the New York State At¬
torney General's office
"Your record shows
been

arrested

in 1937. >
you

various

have

places

institutions twenty times," Judge Ward told
12% lend¬ Neuman. "This record is a trav¬
some time.
ing volume to the building of new esty on our whole judicial sys¬
houses in war industry areas, but tem in the United States."
Read¬
Management and senior we cannot expect: this to continue
ing a disposition of the eases
in H. A. Hopf & Co., man¬
very far into 1943.
showing withdrawal of warrants
care

of him

that

caused

him to hold off acceptance of

luncheon

citizen

reflected

entirely.

the sale of

cessful

CITY, UTAH

still

attitude

average

inflation

further

^™ctio^

LOAN ASSOCIATION

Suv War Sends Here

pur¬

There should continue
to be a good market for homes
throughout the year as long as no

formulated in from the commercial banks and
Jimmy Byrnes the insurance companies for war
will'be the dominant force.
financing,
that the
compulsion
Prentiss Brown who takes oyer
will not be there for them to seek
Henderson's job is an able man.
mortgage loan outlets so actively
There is a question as to what
as in
the past few years. Mean¬
kind
of
administrator
he
will
while; with stepped up mortgagemake but he won't always be in
seeking activity on the part of
controversy.
He is not the ag¬
savings and loan institutions, the
gressive, head-line seeking type. lion's share of
(this year's lending
He likes to go along quietly to
can
be 1;seen going . a'i little more
accomplish his job. He is not the
notably, in; their direction.
*
will

election.

AMERICAN SAVINGS &

for,

its

purchase

are

control

lending volume.
up

this

the

continue

desire

think

part

will

mortgage lending through¬
four years of reliable

home
out

runners

credit

decreasing

power

perhaps up

one-third

home mortgage

The

chasing

give them a good chance
up

full

years

likelihood

the

with

the past four

bine to

him

Loan

give

ever

keeping his money as a cash asset

Federal

Home

explanation for much of

just naturally goes out and buys
a
piece of property rather than

the

invest in

already built.

who has more common sense
these things than the econo¬

mists

loans

gage

war

buys less the average citi¬

money

of.

source

than

rising price level in general. When"

the

they

homes

the home purchasing today is the

four
statis¬

years

•

tised him in his
AND LOAN ASSOCIATION

other

construction

quarters.

leader

today.

money

that

own

large in the total, fur¬ one factor, viz., the fact" that: the
nishing. from 5 tq 10%, but iheyi peacetime hangover is still, being
We
are a conspicuous factor in many experienced in this country.
Leon
Henderson's ' leaving the concentrated areas. The situation do not yet know anything about
OPA will largely subordinate,that does not point'to either of these restrictions and regulations / but
another three or four months will
agency
in the Washington per¬ types
of institutions taking so
sonality parade.
It will continue large a part in the 1943 activity. undoubtedly bring more td us.; It
to serve to carry out rationing and As I see it sq many
billions of means that our savings and loan
price fixing policies but these dollars will have to be obtained institutions :may do less mortgage
other

their

own

policies

(compounded semi-annually)

war
and has many se¬ statistics Have been the commer-,
angles at present.
There is cial banks, doing 23 to 25% of
more to
the North African situ¬ the total volurrje of home, lending; prospects for
mortgage lending
ation. than a .factional fight .for The life insurance companies doi should be "weighed in the light of

control, but it would probably .do
no good to discuss it at this time';

dividend—Dec.

consecutive

convinced

peo¬

in¬

rious

To Invest?

became

the

Many

new ones.

de¬

past

—

increased

existing houses aris¬

building of

the

after

DoYou Have

for

ing out of the restrictions

months later, either,
Bank
admin¬
John F. Scott
until he deliberately spiked the
istration
i n
effect of Mr. Hoover's moratorium
Washington.
Every mortgage of
to
Germany.
Laval held it up
$20,000 or less recorded is arbi¬
long enough to kill any good the
trarily taken as a mortgage on
plan had, which was mainly to
a
home.
On this basis, the sav¬
send the stock market up for a
ings and loan institutions have
few days.
been the chief source of funds for
I wouldn't be surprised if a bet¬
home loans during all those four
ter plan than that of getting the
years.
Their percentage of the
statesmen together would be one
total amount has ranged from 30
to keep them apart.
They get on
to 32. It was highest, that is, 32%;
one
another's nerves.
Knocking
in
1940.
During the first nine
around* together, their wives na¬
months of 1942, latest for which
turally try to outdo one another;
we
have the figures,
our
per-,
they have their spats, the states-*
This year the
men
have to be continually get¬ centage was 30.
availability of additional funds ih
ting up problems to have some¬
the savings and loan associations
thing to talk about. Their compe¬
and the necessity for the associa¬
titive instinct naturally comes to
the fore.
One fellow will read a tions to seek mortgage loan out¬
build up about the other fellow in lets more aggressively than at any

any

supervised by the U. S. Government

loan institu¬

—

Part of this is due to

wasn't many

seem

CALIFORNIA

the

saying

And

AND LOAN ASSOCIATION

Chartered and

the

SAN FRANCISCO FEDERAL SAVINGS

SAN FRANCISCO,

coupled

purposely offended Mr. Hoover as
soon as he set foot in Washington

1,999,250.00

investment Share Accounts

——————

Accounts—$15,917,993.27

Savings

Mortgage

First

with the visits.
He took Ramsay MacDonald down
to his lodge on the Rapidan and
they sat and talked before a log
fire, smoking pipes; No good ever
came of the visits.
Laval, in fact;-

Federal Savings and.Loan Association

thinking

mortgage

lot of beautiful pag¬

was a

eantry

d e d

p e n

gree

(Continued from first page)

There

Statement

creasing

inviting first, Ramsey MacDonald
and then Laval over to see him.

Twin City

will

tion

upon

St. Paul, Minn.

Fourth at Wabasha Streets,

for

reasons

that the savings and
d

Savings and Loan Association

St. Paul Federal

defense period years but there are<§>—
substantial

Friendly Institution'

Insured

ing home mortgage lenders of the United States in 1943.
My own
feeling is that they will increase at least by a point or two their
proportion of the total home mortgage lending done in the nation.
We all know the amount of lending will be less than in the boom

Marquette Avenue

MINNEAPOLIS,

$2,023,516.97

Total

—$2,023,516.97

Total

including cooperative banks and
building and loan associations, are likely to continue as the lead¬

SAVINGS 6- LOAN ASSN.
823

Savings & Loan League

Savings, and loan institutions,

1st!

NORTHWESTERN FEDERAL
3,913.45

States

United

before the

the

80,020.04

Liabilities

Other

Current Dividend Rate

Undivided

and

Reserves

237,067.49

Hand and in Banks--

Loan

Home

Furniture

from

199,904.00

Mortgage Loans in Process

earns

lOlh

from

Advance

received

Money

Investment
Accounts
____$1,728,459.15
and

Savings

lending In

By JOHN F. SCOTT, First Vice President

Up to $5,000

LIABILITIES

ASSETS

and Contracts_$ 1,659,761.74
Secured Loans to Investors-17,579.00
Real
Estate
Owned and in
Judgment
4,521.11
Stock Owned in the Federal
Home
Loan Bank of Des

First Mortgages

Home Mortgage

INSURED SAVINGS

DECEMBER 31, 1942

FINANCIAL STATEMENT AS OF

Thursday, January 21, 1943

FINANCIAL CHRONICLE

THE COMMERCIAL &

274

agement

the

engineers, will address
meeting of the So¬

the

savings and; loan
devoting about

were

and failures to prosecute, he as¬
Apparently,
however,
people
serted "You are not going to get
"Measuring Insurance are continuing to buy homes in
away with that in this court. You
Company Management in the In¬ every price range. About 55 to
have made a systematic business
terest of Policyholders and Invest- 60% of all the loans made by our
of
defrauding people—many of
ors.'V
The Jan. 22 meeting will savings and loan associations this
them poor people in the rural disbe Held
at 56 Broad
Street, at past year were to assist in the
12:30 P. M.
purchase of existing
houses, tricts for years.

the

luncheon

ciety

Volume

Number 4144*

157

THE COMMERCIAL & FINANCIAL CHRONICLE

275

■

;

Statement of Condition, Dec. 31,1942

By RALPH H. CAKE, President

further explained:
"The 22% decline from the pre¬
vious month—after three months
of fairly well- sustained activity-

United. States Savings and .Loan League

The year

1942 with its surprises and its threats, its known and

unknowns for the business

developedj;into the second most

man,

existing

homes.

They

received

well as the

being for the; purchase
from vthe ' public more y money

post-depression year^
except 1941, taking in about $1,- duce "this1 indebtedness and -get
500,000,006 from investors, both in¬ closer to debt-free ownership in

full

d i

and"

them,
the

ing

% The year saw

fortes
the

months of

six

the

T h

the

>vith

year

net

gain of
10%
in

total assets^

„.

some

conservatively

that

financial

has

;

1941,
actual

year

World

War II

effect

>■

less marked

months

"the volume -of business,

both in the

training both, the
has

less

partially

been

men

followed

by the

ities concerned with

}

its

During 1942 they "sold approxi¬ finds

mately $307,000,000 worth of
bonds

their

the public

members

war

and

in general, contributing

services of

the

1942

totalled

one

staff

beginning the

the

associations

position, with their cash
as at any time
and their

than

1941

8%.

period and

while
proportion

common

vested

that

between

where

Bks.

Amount

time
5

was

and

in¬

bk.s.

savs.

25,950.000

some¬

10%,

people

The

and

58,519,000

3,163

11,596,000

repayments

were

outstanding in the bank
system decreased from $219,400,0*00 on. Jam 1, 1942 to $144,750,000
on
Sept. 1, 1942 and the repay¬
ments were still being made dur¬
ing' the last four, months.' The as¬
sociations also repurchased Fed¬
government

investments

45,456,000

94,641

$278,321,000

100%

these

cies

associations

inevitable

omy^

This

estimated
ices

nation

the

St. Paul Fed. Savs.-Loan

under¬

in evaluating the serv¬
institution to the

thrift

war."

■

Mortgage

This is the

Savings

The

the

act

tion

War

Bonds

and Stamps,
the annual report

and according to
of Axel A.
ager

associations

possible

by
One

ments.

end

Olson, secretary-man¬

of the St. Paul Federal, that
sold

institution
amount of

cing

bonds

institution,

and

spending

toward victory."
the

of Dec. 31,
as

two
was

have

activities

53rd Annual

and

Griswold

December 31, 1942

Congress Street

DETROIT,

MICH.

Statement

of Condition

ASSETS

of Dec. 31, 1942

First

Real

Owned-

Estate

—

Bonds

War

Hand

—

14,734.82

Securities-

and

States

and

17,134.03
100,000.00

—

Banks

92,447.81

Equipment, Less
1,151.33

announcement

;

^because of . the curtail¬
in "'home construction. The
-in

the

move

-•

their properties

still outstanding,'
stepped-up
earning

in the war economy to

Con¬

tract

Real

—

Estate

rieal

Owned

Estate

—

Subject

27,646.07

21,569.27

Redemption
Office

12,057.85

Building

18,693.49

Furniture and Equipment
Otner Assets
Stock

Loan

Federal

Bank

Accrued

6,466.86
1,980.56

Home

29,100.00

———

Interest

In¬

218.25

—

U. S. Government Bonds-

•«

190,700.00

Cash

LIABILITIES

374,879.79

Hand & in Bank's

Members' Share Accounts—$1.,514,676.80
from Federal Home

Advances

Bank

Loan
Loans

—10,569.08

Liabilities

Specific
Genera!

687.35

Reserves

33,106.91

——

Profits

LIABILITIES

33,543.84

—

Reserves

(Undivided

$3,586,805.06

—131,250.00

Process--

Other

Savings

and

36,322.61

-—

Heme

from

Loan

Federal

insured

Savings and

$5,000

The

Loan Insurance

Loans

228,305.00
Pay¬
25,233.01

— —

Process

—

Accounts

Payable
Liabilities

Other

Corporation

$3,024,734.32

Federal

Bank

Dividend

ment

All Accounts

Investment

Accounts

Advances

69,828.75

——

8,394.18

—

1,693.00

—

Specific
Reserve

41,910.13

General
Reserve

156,128.28

Undivided
Profit

Market

Fluctuation

Total

30,578.39

—

Reserves

228,616.80

in this
$3,586,805.06

Insured Investment
Total

Legal for Trust Funds
in most States

Assets Over

Paul

1942,

were

$2,023,-

sent

compared with $1,813,-

$228,600.00

Dividend 3%

ST. PAUL
SAVINGS

& LOAN ASS'N of CHICAGO
2116

Cermak

Phone

WICHITA, KANSAS
Financial and

Over

FEDERAL

FEDERAL SAVINGS AND

Federal

Reserves

Current

$3,000,000

MID KANSAS

LOAN ASSOCIATION

St.

Road,

Canal

Established

Chicago

2137
J889

operative statements
on

request

INVESTMENTS INVITED
Insured
and

by
Loan

Federal

OAK PARK FEDERAL
SAVINGS

& LOAN

ASSOCIATION

Savings

Corporation

as-

3V2%

FIRST FEDERAL

Liberal Return—

re¬

Current Rate 3%

Savings and Loan Association

SAVE

All

HERE

All
to

Savings

and

$5,000 by

and

Investment

Accounts

here

are

insured

Agency of the United States Government
dividends are at 3%.
We know of no other

$5,000.00 by
current

equally -safe investment; that will pay you as good a return on
your money.
Assets are over $4,000,000.00. Send card for
,

free booklet and information.

Danielson Federal Savings and
84 Main Street

Phone 377

accounts

insured

owners,

with substantial mortgages against

their

Sold

sav¬

Officers and directors of the

For Insured Safety and

demand

manifested

In¬

17,700.19

Properties

vestments

Current Dividends

made,
develop¬

flow of money accompanied by

was

Loans--$2,885,792.73

Loans

vestors

Loans____^.$l,322,888.44
on Contract
211,800.16

Mortgage
Properties Sold

postpone¬

Mortgage

Secured
ASSETS

expenses.

the increased in¬

speeded up repayments
principal of loans. Home

in¬

STATEMENT

the

same

been

main

and

ASSOCIATION OF DETROIT

Accrued

the

rather than

In the larger sense, the

51-6.97,

Savings

out-of-town

Lafayette

$1,760,156.59

managing their affairs that

-of

Federal

from

association.

SAVINGS AND LOAN

BUILDING

$231,975 in 1942.

ings accrue,

ment

loan

the

lessening of overall mortgage loan

power

and

inquiries

$1,760,156.59

agents in the distribu¬

Bank

of DETROIT

Depreciation

the Treasury of the United States
to

Loan

Home

Corporation.

and

mortgage

'FHLBA

.Such- deflationary

used

Federal

savings

invited.

and

in the course of this program had

retired

13,368.76
447,407.71

——

largest "federal"

Insurance

BUHL

loan associations
authorized by the Secretary of

are

Recordings Lower

Home

270,007.92
3,360.75

Totalling $2,023,516

% Assets of

No. Home

$10,810,683.83

600,000.00

PEOPLES FEDERAL

Cash

Of St Paul Has Assets

high

econ¬

32,689.91

Savings and Loan Association

Office

war

14,056.94

—,

Profits—

Griswold

United

not

original $273,000,000 invested

other

Bank.

FIRST FEDERAL

Investments

594.83 as of Dec. 31, 1941.
Re¬
financing, in
the United States, dropped sharply serves which were 3.46% at the
program- inaugurated%n the mid-,
To¬
die 193CS-.for putting loeal thrift in volume during November to Close of 1941, are now 3.95%.
and
home financing
institutions the lowest level since the short, day's assets indicate the growth
month of February, 1940, the Fed¬
immediately into position jto fi-:
of
the
organization since
1935
nance home
building and create eral Home Loan Bank Adminis¬
when the assets were $73,197.76.
tration reported on Jan. 9.
jobs/ Altogether $102,750,000 of

ment

Loan

invested ipolicy will continue in 1943.
1942; as
"We
believe that one of the
of .war
greatest contributions citizens can
effect of
make in this war is that of so
helping

well 'as, the

their shares at a'much faster rate

than required in 1942;

the

Loan

55,830,000

12,807

Totals

$1,300,000,000 which

institutions

10,401.76

17,361
26.849

cos,-_

Other mtges,—

posses¬
sion of government bonds an ad¬
ditional liquidity factor, with their

income.

17,374.74

—

———

Undivided

Member

$80,970,000

the

Loans

year.

and

vestors

28,914
5,547

cos.

tr.

Mutual

—

Individuals

year

$300,000,000
bonds they sold, had the
made on their loans owed to Fed¬
postponed spending, of
eral
Home
Loan
Bank system,'
nullify the inflationary tenden¬
their central reserve institution.
Substantial

been

Home

Process-

governments

—

loan

invested
$180,000,000
in seven million whose names are
"War effort absorbed a good
on their share account books.
\ -:
government bonds, including war
The
Treasury
can
count ' on part of our organization's time in
tends, »about
three
times
the
amount; of their government bond them for greatly expanded sup¬ the,, past year," Mr. Olson said.
purchases-in any previous year in port of the bond purchase pro¬ "It was considered an objective of
their- history.
Some associations gram in 1943 and for a sustained even
greater rank than accumu¬
help teach people to
closed the year with 20 to 25% of effort to
postpone the spending of current lating savings in this home finan¬
assets in

the

$12,183,118.88

Savings and

Number

associations

.Insurance

rpractically full time in reserves larger and still being- ex¬
panded,
and with new
money
a great many instances to handle
in
from the confident
the bonds; Meanwhile the associ¬ flowing

eral

Federal

from

Michigan's

Sayings and loan
;

sound

t—

281,878.07
j.

decline of 15% from the

The number and amount of new

mana¬

new
.

150,000.00

—

Liabilities

Other

mortgages made in November, by
type of lender, follow:
•

members

ations

Fixtures.—

and

Reserves

$3,675,-'

ship, however."

gers with increasing emphasis in
financing the the last five years.

—

Payments by Borrowers for Future Taxes and Insurance.
Due Federal Reserve Bank (War Bond account)

off

associations retained their leader¬

however, some notable new activ¬
■'

Loans

the

of institute
and women

program

at the start of the year.
meant
for
the
associations,

Stock- —1-

Building---,
Subject to Redemption

personnel

has not
become a problem with the asso¬
ciations by the beginning of 1943

foreseen

Bank

502,000.00

Charges and Other Assets——

Advance

26%

was

Manpower

ago.

receiving and disburs¬
ing phases, than could have been because

war.

estimated

comparable

Savings and Loan In¬
which is the educational
organization
in
the
business.

year

1,014,549.83

LIABILITIES

less, recorded by all
.were

000,000,

stitute,

27,415.98

__Z_

Savings and Investment Share Accounts-..--

November, 1941.
was general through¬
country.
"Recordings for the first eleven;

America's
first tent to carry on several different
participation ' in jobs in the office than they were

had

Loan

restrictions

tenant-occupied

from 1940..»By class of lender, ac¬

been

$10,165,441.56

—

The decline

jobs

—-

$12,183,118.88

were in effect;
"November non-farm mortgages

enough American

destinies

new

breaking

Deferred

out the*

people became tied up
with savings and loan institutions Many of the
persons
who now
in the year just past than in any
operate and work for the savings
of the past thirteen years with the and loan
type of institution are
single exception of the record- better informed and more compe¬
more

Furniture

their

Office

Real Estate

Certificates

Banks

Government Securities

Home

Estate

and

from the total of

counteracted by greater attention
to
the
courses
offered
by the

Cake

estimated
the

shifting

sociations
Ralph

c a n

Office

States and

over

Real

tivity of savings and loan asso¬
ciations, banks and trust compan¬
within, the.offices being, greater ies
and
mutual
savings
banks
in this past-year than at any time
dropped more than 20%, while the
in the .past ten.
This drain on decline registered by the three
the trained personnel of. the-as¬ -remaining types of lenders was
the

staff,

> prob¬
clo sed

the* United

$278,006,000, which

1500 of the staff

largely by others already

year.

ably

taking

sale

mortgagees,

members, directors and officers of
the associations go into the armed

last;

Home

and

—

are

dur¬

the

came"

Repayments

Administration

the

of $20,000 or

$932,930,000 when the statistics
completed for this past year;

aver¬

which

money

1941.

principal will, probably total

45% of
"new

aged

which

States

Federal

properties
■l

repayments
about 18.7%,. more-than their

amount

with

vested

among our

was

estimated' .that

were

in
.in¬

gains

adopted
it

savers.

money,

...i,;.

from

small
Net

dual,'

widely
borrowers and

program

month'

Price

1942. .-.This

because

Hand

United

Passbooks

Cash

increasing curtailment

construction

new

Mortgage Loans and other First Liens

Loans

material shortages,
A new factor
was that November was the first

than in any

stitutional and

due to seasonal influences

was

active year the savings and loan institutions have had since the
4920^;
They made approximately $i;i00,€00,000
worth of new
«' mortgage loans, about 60% of the volume

ASSETS
First

Loan Ass'n.
Danielson, Conn.

WEWOKA, OKLAHOMA
The

first

chartered

Oklahoma

are
Louis
Peterson,
President; Frank Pampusch, VicePresident; Axel Olson, Secretary-

Treasurer; Gustav Axelrod, At¬
torney; Roy C. Smelker, Charles
J. Flynn, Robert Hein and George
H. Lyser.

agency

of the Federal

Government.

Assets Over
Write

sociation

whv

$1,700,000.00

today for booklet explaining

Oak

desirable

Park Federal

place

for

your

104 N. Marion St. Oak

most

savings.

Park, III.

Phone Village 8790

Tomorrow's Markets

;

Walter

Whyte
.Says——" '

news

has

which

news

important4 .market ef¬

fect^

Tbe. Russian breaking

of the

siege of Leningrad, its

drive to the West, its break¬

ing of the myth of invulner¬

•

ability of the Wehrmacht en¬
joyed, so long makes for fine;

/•'/

But /people inter¬
reading.
ested in .markets are not con¬
cerned../with, flaming head¬

tKree

lines." Jtia the small

four- line articles hurled somet l ines

which

fully matured always.

Schenley, America's best-liked Bond,
Straight Botirfaon Whiskey

STAGE/

100 Proof -This Whiskey is 6 Years Old ' Stagg Finch Distillers Corp., NX C.

•

now.

•

"Dark Eyes," a#comedy by

With Elena Miramova, Eugenie Leontovich, Jay Fassett,

jnilla

Toretzka,

Geza Korvin,

Ann; Burr,

Oscar

Sets

ing that plays dealing with Russians should have the vogue they
how' enjoy. "Dark Eyes," the third Russian play,to appear ;on Broad¬

this season, is

way

upon

'/•'",

'•>.

Effect

/'•

/ Regulation T has caused bankers

universally to frown
upon borrowing/ upon unlisted collateral; and to/,avoid/^c-i
cepting such security whenever possible. / While ho fig¬
ures are,, available,/ it /is
^believed,4hatf7banks;v.ar / being/
t

steadily'increasing

per¬

centage of unlisted collateral because this busipess has been
driven out of margin accounts to direct bank loans. Banks are*
not nearly as well equipped to check
changes in collateral
value/as are brokers, and most bank loans are 90 to 180
day time loans/ On the other hand, brokers check margins
daily and'make, immediate demand for added security
whenever' a deficiency; Occurs.
Hence, i there; has been a
decrease in the safety element or the opposite effect desired.
In respect to unlisted securities, Regulation T lessens
the dealer's ability to market his merchandise and to main¬
tain
better secondary
markets. For instance, a dealer
convinces an investor that XYZ, an unlisted stock, is a
,

desirable value and meets the investor's individual

This

ments.

LudPolk and others.
by Stewart Chahey (Reviewed/Friday- Jan, .15^, 1943).^/
With Russia and Russians making the headlines it is not surpris¬
N. Y,

' •'

v '

require¬
purchase 5,000 of XYZ
The market in ! its ; awn stock; but tells the dealer that he' can't make,the COmmitfashion
recognizes
t h e s e m'ent immediately unless the stock can be carried on mar-?
things and evaluates them ac¬ gin for 45 days or until certain funds become available.
cordingly.
If for example, He offers to/ put up additional* unlisted collateral/ iAlaS,
basic developments ~ w h i c h the dealer must tell him that a regulation of the Federal
mean
little to the average Reserve Jfioard prohibits an initial extension, of credit against

Elena Miramova and Eugenie Leon-,
iovich, presented'and-directed by Jed Harris at the» Belasco Theatre,

mean

'•

higher degree of liquidity

dispatches forced,- nevertheless,; to accept,

something to
them. For example, the sub¬
marine sinkings carry much
more
weight than the win¬
ning. of a; sensational battle.
The attitude of the Treasury
Department is more import¬
ant; than any McNutt page
one" story of potential man¬
power.
And business after
the .war is more important
t h a n
sensational
earnings

recommended Old

keep his assets liquid... so I

He said to

/in. long•

brokers, dealers; and banks for. the greater protection of
their customers, their depositors and themselves is admir¬
able and should be pursued.
But Regulation T ha^ failed*
to accomplish this ideal because it is based Upon the wrong;
formula that listing alone is an assurance: of ready market-:
ability. This same false theory is also found in thd Supple-,
ment to;Regulation U of the Federal Reserve Board, which;
permits a broker of dealer J a maximum loan value at his;
bank-of.. 75%; -dri- listed; stocks against only 60%: on unlisted/,
stocks; (Supplement effective Nov. 1; 1937.); "V
/ /

you

read spread across. the front

p^ges/.isn't the

(Continued'frdm first pa^e)

The desire to enforce

(Continued from page 269)

consider, but the

Thursday,-January 21 y 4 943'

f»E,COMMERCIAL fj& FINANCIAL CHRONICLE

276

frothy yarn- about three Russian ladies who

investor

decides

The investor immediately begins; to:
who person
were
suddenly
to unlisted collateral.
That make their - effect felt the think there must be-something wrong with all unlisted
angel and see market ;would: show it.
All securities if the Federal Reserve Board has prohibited"

seek refuge for.the, week-end as guests,-of a,fellow countryman
in turn is a guest at the home of a twealthyA-ong Island family.

playwrights in search of an
Long Island family/a harried Washington official,
id their financial dreams, makes for amusing, complica¬

the three ladies are also
in the head of the

the

answer

this

naturally ties in with our brokers, and dealers from advancing funds. against suchand foreign; policy securities.
Frequently, too,; the investor will balk at the
(which is /usually. / buried in dealer's suggestion of handling the transaction through at
Inewsstories.'Butrifrthe^aver- bank loan,, due to his newly aroused suspicion of any unlisted.1
jage person doesn't know, any: issue. As a result, the dealer fails.to obtain an order whichi.
thing about them, som€?body would^help -to develop a better market and must, hence-*
iwfao can interprebtheMTHOp^
oirth,* contend; with an unjustified- resistance toward his *
/v'
.'j /•• ;v;/v//;'.;//■■
'././/'
|erly cam and; does" ihteYpreb imericiandfe
jthem foc/'-us by/ his action/ in, 1/// A'broker ofi dealer, furthermore^,cannot finance an
the market.. So far such. ac-. .vestor's purchase on partial credit of preferred stocks such.;
tion has nqt appeared, or if as Clark Equipment, Pet Milk, Masonite and Edison Bro¬
it has, was hot of sufficient thers Stores in spite of the fact that the
junior common •
duration to make ?much dif-; atocfe.ofilJiese corporations are listed on the New York,
ference.
Stock Exchange-;
Nor canihe extend credit on any bank stock or the/
I The
end
result
for
the stock of any.insurance company, excepting the few in the'
entire country which are listed.. It is ironical that bank¬
trader is a continued policy
ers should-frown
upon unlisted stocks as collateral when,,
of watchful' waiting with all
in most cases/ the'stock of their own institution is traded
stops in securities held still exclusively in the unlisted market. It is common knowl-'
edge that the stocks of big city banks and leading insurance*
applying.
"
•;
./ jjr
companies enjoy an active market and large/blocks ban be v
traded on sprehds closer than/many of the stdcks apd bonds»
More next Thursday,.:
///

comedy, "Dark Eyes" has, it's, funny/moments. The-spec*-. domestic
tacle of three ladies running away from .the- consequences of. pass-*
tions.

ing rubber checks', their wild

conversations, their arguments, and the

Sometimes wacky Situations; make

your sides ache 'with'laughter. But
the trouble is the moments of hillarity 'are too thin "to * be spread

<j>ver- an' entire evening. The- voluble- ladies are perfect examples of
the popular, idea of/the Russian. -Tbey-haveHmercurial temperaments.
They are either riding, the .crest of the wave when- paying the in¬
come tax seems such a small thins that they plan to give the Gov-:
^rnment "a bottle of vodka to* show- their gratefulness; or they" are*

the slough

out.

of despondency when suicide- is the only way

AROUND-NEW YORK-TOWN

What, with the war and gas rationing, you'd think local night

be in that quaint condition Broadway succinctly de"Strictly * from hunger/'; Nothing could, be further from
the truth. Saloons, whether of the; bar and grill, type or the swishy.
cafe set relaxation joints are doing a land office business. Every¬

clubs; would

scribes

body has reasons for this unexpected popularity, But reasons^ don't
.ihatter/for, the fact is that the^ are busy.* If you like to rub shoulders
with movie

people, then the places you are bound to find dozens
spots. What with the war and bond selling drives,

is in the East Side

Hollywobd

people who used to

abroad now. turn /up in New

run •

York daily/ And evenings you'll/see them swapping lies at the
New; York night spots. To attract more spenders the East Side

put

standing
(E.

Some of them have gorgeous girls and out¬

elaborate shows.

stars;

54th),

for

some

just

example,

fame, to it's patrons

tonier
places

single personality.

The Monte Carlo

this week. Miss Wood

was a

comedy, star before she turned to dramatics.

Spirit

of OBlithe

introduces Peggy Wood

top-notch musical

Another attraction-is

aV young lady named Diana, whose j talents in the business of telling,
vcmr ;

past,

present, and future, giyes her quite a

speaking of

prognosticators,

look

the lady called Arlah,

does- her crystal gazing at the skyscraper
ttal: Park

j^dds
ing

a
a

South)/

following.. And

People-tell me? she is-uncanny.

Senya

Oneska,

who

business.

This week

listed

./■;■/.
{The

plays

lilting,

romantic,

barrassing

name

sees

They join

is actually

tiarry

Myr'us;

Carp), is a mind reader

most

Club

unique restaurant in

beautiful location, overlooking

Central Park to the north,
Serving, best

I write from experience—em¬

Among the other East Side places there is

tii£; Versailles (E*. 50th) with, its elaborate show starring .the rotund

food,

skilfully

prepared.
Entertainment after 11 P, M,

lady of letters-and—parties, Elsa Maxwell.
is5 the

Stork

Then, of course, there
Club, but you know about that one. All in all. New

York is how a Saturday night

town, not only Saturdays, but

every

Telephone. PLaza3-691U

night in/the week.

\fijt

..•■j

• f

i. t •

'7v\ t

/T'V""'f.7.'u:

W'il1-'"

/*•/:"•;'•'

•;

point, it would appear appropriate to point out ;
that the Securities and Exchange Act of 1934 (Section 7-c-2);
prohibits a broker or dealer from* extending credit on any:
new
issue, in which he participates in the underwriting; for;
a period of 6 months, thus
effectively preventing the par,-:
tial payment investment purchasing of such securities
by/
individuals.
Ironically, it does not prohibit, a non-partici¬
pating firm from accepting an unlisted new, issue as addi¬
tional collateral to a margin /account already in existepce*.
Illusion
/

Adjoining Tlie Plaza

! A

exr~<

At this

30 CEKTBA& PARK SOUTH

the talented young dancers, the

that is unbelievable.

experience.

to lose confidence in these securities:

of the author only.}

The Penthouse

* or

Hotels are

who: has been mentioned here before.

uninitiated (his

with"an ability

expressed

do not necessarily
coiricide with those of th$
Chronicle. They are presented at
those

the New York and other National Securities

changes..

The; Pierre (Fifth A v. at 61st), for

Barrys, who double from "Show Time," opening there.

to the

views

When investor interest again centers in equities,*
the realization that they cannot borrow froip; their broker
in * this
at any or dealer may cause the stockholders of those institutions »*

irticle

(lie amazing Myrus,

—Walter Why tp.

time

who

ipstance, with its ..really beautiful Cotillion Room, has the rope up
fpr. the first time.

The Penthouse

plaintive tunes to put handholders in the proper mood.
also getting increased

Penthouse €lub (30 Cen^

musical background to its .Central Park backdrop by hav¬
violinist,

■■

•

Regulation T is predicated upon the formula that list¬
ing is an assurance of marketability. This is easy to dis¬
prove.
The record speaks for itself. In 1941, 1239 stocks *
were traded
during that year on the New York Stock Ex¬
change. The total volume in 51 of these stocks ranged
from 10 up to 1,000 shares with many wide price ranges.l or instance, sale of 140 shares of
Wheeling and Lake Erie
caused a decline/of 19 3/& points and sale of 820 shares of
American_Coal resulted in a range of Wz low to 17 high.;

,1,

Vblume'T57 ''^^^^^4144

THE

dokME^ClAt

with

ability.

^HRO^ldLE

fi: FINANCIAL

•277

based

a net
gain of 5 points for the year K/Is there liquidity
-protection - to banks or individuals*in those listed' stocks ?
Of the 51 stocks, only 10 shares changed hands in 3 issues,
2.0 shares in 2, and 30 shares in 3 more.
Out of the 1,239
■stocks, 141 or 11.37% traded to the extent of less than 500
shares a month, or an average of approximately 100,shares
a week.
.% "% %;;
•.
:
•

The record of, sales of less than 500 shares

month

Then,: what should the formula be?

It should be

Oar Reporter's

upon-proven and established marketability *
Qual¬
ification of unlisted issues for collateral
purposes could be

Report

determined by committees

representing the National Secur¬
ity Traders Association, the National Association of Secur¬
ities Dealers,- Inc. and the Federal Reserve Board.
These
committees could agree upon a
preliminary list and make
additions of eliminations at regular

(Continued from first.page) '

The revival of insurance:

;

proved

although not
merit

the

Washington Stock Exchange and 737 shares

the

Chicago Board of Trade. Nevertheless, listing, on those
exchanges and. all other registered stock exchanges pro¬
vides' exemption' from certain restrictions in Regulations
T and U.

;-"r

•

should command the immediate attention and wholehearted

»
.

traded in the Over-the-Counter market.

now

''' '* 'V.'

*References:

ments for the purchase of
their
"bonds when the
opportunity af¬
fords/finds itself pretty much
in clover so to speak. v

Banks Sell Municipals
'

Except for the rather sizeable

The Securities Salesman's Corner

emissions of new Housing Author¬
ity obligations the municipal bond
field continues quite bare of

opportunities

There

are

market

obstacles that cannot be

v/.

•..«

and at Dec. 31, 1941, were quoted 30-70.
Cleveland and
Pittsburgh Railroad had 7 issues of over $19,000,000. par
value listed.
Its General B 3V£s, 1942, had not traded
since 1935, with no bid or asked showing at the end of
1941.

Its V/2S of 1981, did not sell; only ! of its 3V2S of
traced and a grand total of only 69 bonds changed
hands on the New York Stock Exchange in all 7 issues dur¬
1948

■,

This

investment into securities.

doubts concerning the post-war economic outlook.

bonds

month.

Out

903

corporate issues which sold during the year, the number
selling to the extent of less than 5 bonds a month was 140 or

15.50%. The only sale of Providence Terminal 4s of 1956
during 1941 was $1,000 at 87 on Oct. 6. The bid and asked
at the year-end was 63-85. ' On sales of 7 bonds, Florida
Central and Peninsular RR 5s, 1943 ranged from 43 to 50,
with last sale
Dec. 31.

Dec. 4, at 49^ and were quoted 20-60 on
After a sale at 121V2 on Aug. 29, the market on
on

Gas & Electric

Company of Bergen County 5s, 1949, dropped
to 961/6-97 by Dec. 31.
Only 6 bonds traded on the Exchange
during 1941. There were - numerous other examples, but
the foregoing statistics should prove conclusively that list¬
ing is no assurance of either marketability or liquidity." \
Listing Origin Overlooked' %%

itself, and the

Again,

% The; formula of these Regulations places an impediment
of sufficient marketability for unlisted
stocks;,to tiecome/eligible for listing. It overlooks the in¬
disputable fact * that truly liquid listed issues, by the cur¬
rent 'requirements for: listing, must develop marketability
,

first in the Over-the-Counter market.

It is essential

that

there {must be developed a minimum number of stock¬
holders, widely enough distributed to offer reasonable assur¬
ance that an adequate auction market will exist.
This is
=

the

of hanks which have been

case

presumably

way,

offset

loans.

war
•

effort*

part at least their
investments in
Treasury

vast
>

.........

The latest of commercial insti¬
tutions to take the

step, the Cen¬

tral

Hanover

received bids

Bank

Trust

yesterday for

Co.

total

overcome

ties of

our

enthusiasm for the business

good

year

itself, or for the possibili¬
The thing to do is to turn around and

in 1943.

follow the lines of least resistance.'
Take

problem of reduced transportation.
The answer is
definitely fewer calls—hut better interviews with larger investors.
Increase the unit of«• sale. —In every community there are a
goodly
number of larger investors upon whom you never have made a call.
Seek them out... Do some .intensive study of available markets.
Goodprospecting in this respect is the first important consideration. Five
new accounts in 1943 that can produce a substantial volume^ of busi¬
ness for you may be more valuable than fifty
small investors.
It
-

and .effort

to sell

York

State.-Banks

Allan

were

Sproul, presi¬

dent of the Federal Reserve Bank
New York, this week to

put

themselves
Mr.

"total

block of

$100,000
worth of securities than it does to sell a couple of thousand to the
smaller. account.As a matter of fact it probably, takes less for. the
larger investor is usually1 easier to talk with once you know him.
He understands investment procedure and he is usually more
openminded to constructive suggestions.
;vv.
•.
<
!

basis."

war

Sproul, who also is head
Advisory Com¬

of the War Loan

mittee

for

this

the

doesn't take any more,work

New

advised
of

view the situation, from the aspect of the mer¬
chandiser of securities, we see no point in allowing these realities to

hankers

conference

told state

area,

their

mid-winter

Monday, that al¬
though they had accomplished
much, there is still a great deal
to do "if future drives

achieve

measure

are

equal

greater

success

selling

government

securities

other

than banks of deposit."

could

not

predict

what

of government securities
reach market in the course

amount

will

of the

year, and informed bank¬
that the Federal Reserve
Sys¬

ers

for opening the larger account is through the medium of the special
situation.
Select a security that you feel convinced has "outstanding

tem is prepared to assure banks
against any embarrassment
through large purchases of gov¬

features."

ernments.

One of the best methods

do the ^development

showing decided inclination that

Other factors of lesser import which may

below

true

of
$5,560,000 of such bonds in
The
pieces covering 35 different
problem, reduced transportation facilities for salesmen; thereby
issuers.
cutting down on the number of possible interviews.*'1 Secondly, the
Topping ,this list of offerings
impact of a higher cost of living, increased' purchases of "defense
were blocks
of New York State
bonds" and sharply accelerated taxes upon? the
average investor— and New York
City issues, and a
especially those who have formerly received income in the $10,000
formidable list of lessser names.
to $20,000 per ypar group.
There is no point, in denying the fact that
this former group of investors will have less available for "cash"
State Bank& Get Call

bonds

rate

notably

The Way we see 1943 in this respect is somewhat like this.

■■

the year,

the

first

add their quota of sales resistance are: the general uneasiness over'
the present world situation, the course of the war

•

Of the 292 Foreign bonds which traded during
192 or 31.50% sold to the extent of less than 60

ing 1941.

such, that

temptation to sell is strong.

these firms

.changed their "merchandising policies" to meet the times.
corporate, 39 were United States
One firm, we recall, changed its policy from
dealing in general market
Government direct obligation and guaranteed issues, 3
securities to the then depreciated Real Estate bond
field, with result¬
were New York City bonds, and 298 were
foreign bonds. ing success and exceptional profits to its clients within about a threeOut of the 918 corporate bonds, 15 issues did not trade at year period.
Another turned its attention to Reorganization and
all during the year.
In fact, Illinois Central R. R. Sterling Receivership situations. Activity was created because it was stimu¬
lated along the lines that were sound in relationship to
prevailing
3s, 1951 had not traded since 1936 when they sold at 93, conditions.
.yv •••■ -•.<

new

consequently
finding the

.are.

situation

were

and

holders

some

The Answer To 1943VPr obi ems—Large Unit Sales

•

successfully overcome in
story is the same on listed bonds, except that gen¬
the securities business as long as there are "free
markets.". The try-,
erally the daily quotations show far wider spreads between ing
years of the thirties are proof that some organizations were able
bid and asked prices of the inactive issues. "For example: to come
through with more stamina and strength than they enjoyed
of 1,258 listed issues shown in the Fitch Annual Bond even before the deep depression came
along.
We remember, that

1941, 918

mo-

Regulation T of the Federal Reserve' Board: Section 2-d,
This is once, as some dealers
Section 7-b;
{ ;
put
Regulation "0" of the Federal Reserve Board: Supplement it, when there is really a mini¬
mum of
difficulty in seeking to
effective Nov. 1; 1937;
v. *
.: ;■
*
negotiate the needs and desires of
;
Securities and Exchange Act of 1934 (Section 7-c-2).
two different types of customers.
Section 3-c,

Record for

railroads/

support of all officials of the Federal Reserve System, the
Accordingly the firm which
Securities and Exchange Commission and the entire Invest¬
is
fortunate
enough
to
have
ment Industry, as well as all
/standing orders from manage^
Corporations whose shares are

The

the

active at: the

recently, are still seeking
favorable buying opportunities in
their own issues.
\

shares resulted in a decline of 12 points in Metal Textile
preferred.
The trading of 397 shares caused a 12 point
range in Metropolitan
Edison preferred.: Perhaps these
may be extreme examples but. they prove conclusively that
a substantial
percentage of New York Stock Exchange and
New York Curb Exchange stocks should not be preferred
collateral, especially by comparison with'many' over-thecounter stocks
that enjoy
constant broad markets.
The
volume percentage, obviously, would be much more glar¬
ing on the smaller stock exchanges, like Boston, Philadel¬
phia, Cleveland, Detroit, St. Louis and San Francisco. An
SEC release shows that the total volume of trading in June,
1942, in all stocks listed thereon, was only 452 shares, on

in the market h^s
double-barreled boon to

houses .since

some

com¬

interest

pany

intervals./ A fair and
the New, York Curb during 1941 is even more; startling-requitable formula based upon marketability of the indivi¬
390 issues or 44.21% of the 882 issues traded.
Sales of 30 dual issue should be Worked out to correct the present injus¬
shares caused a 3 point range in Prentice Hall.
Sale of 130 tice to theJ Over-the-Counter •: market.. This suggestion
,

Two-Way Operation

have

ever

used in

actual practice

Then get into the inner

workings of that company.. Find
securities, its background, its
policies, its products—sell yourself first.
There are companies that
have a "story" that you can tell—and that you can make as interest¬
ing as any novel ever written. Your "big man" will see it providing
you have done a thorough job of research and your situation is really
promising.
This may sound like a lot of work—it is just that.: But it is work
out all you can about its outstanding

that is constructive—along sound lines that will bring your volume

accomplished through the sponsorship of Over-the-Counter
dealers and is.not obtained merely from the resultant ad¬
vertising of listing, itself. Trading activity frequently
declines in many an issue following listing due to the loss
of the dealer sponsorship which had created the Over-theCounter interest in the stock.
The spread between sales
and between the bid and asked prices widens, thus reduc¬
ing liquidity. Obviously, this is not the case where suffi¬

going; has

cient distribution has been created in the Unlisted market

Public Service Co. of N. II.

Unless

there

unexpected

hitch,

the Public Service Com¬
pany of New Hampshire should
soon be calling for bids on its
$22,000,000 of first mortgage thirty-

bonds,

year

carrying

3^4%

ment to deter him from reaching his goal—will make 1943 a better

maintained

and

for

several

in that market. Yet
during the period of steadily increasing trading activity
and broadening distribution, Regulations T and U retard
the process by casting a stigma on the issue and retard the
years

Over-the-Counter dealer's efforts to effectuate
tain

and

main¬

broad market.

Indiscriminate

desirable

lending

than

follow through. It is even more of a difficult road to take
the "hit or miss" pathway that has no plan to recommend it except
the plodding grind that relies solely upon the law-of-averages to
bring in the business.
you

The law-of-averages will still prevail, however, if in 1943 you
set up four calls a week on the "larger investors" and plan a campaign
for the full year that is designed to increase your "unit volume" of
each

transaction, well

who

believes

year

over

himself to

and above
the

extent

listed

unlisted

H. C. Wainwright & Co., mem¬
bers of the New York Stock Ex¬

inactives

his

Mr. Schaenen will make

headquarters

The

last

bonds

month

were

and

registered

hearings

were

held recently on the proposal, so
that the way would appear clear
for the call for tenders.

This

undertaking also involves
The man $2,500,000
of
unsecured
serial
where he if* notes, but that part of the deal

knows

any

discourage¬

is destined for private

placement.

New Orleans Bank Stocks

and other leading Ex¬
changes, will admit Lee Schaenen
to partnership in their firm as of

collateral

that

coupon.

1942 average.

than 1942.

Wainwright To Admit

Feb.

your

plan to get there; and who wilt not allow

change

Suggested Formula
,

the

firm's

of small market¬ New York office, 30 Pine Street.

R. L.

Day To Admit Rogers

BOSTON,

MASS.—Ellery

Rogers will be admitted to part¬
nership in R. L. Day & Co., Ill
Devonshire

Street,

members

the New York and Boston

Exchanges.
ers was

with

Interesting

interesting analysis of New

Orleans

Bank

Stocks

has

been

prepared for distribution by Wool-

o'f folk, Huggins & Shober, 839 Gra-

Stock

In the past Mr. Rog¬

Spencer

Situation
An

Trask & Co.

vier

Street,

New

Orleans,

Copies of this analysis

may

La.

be had

from the firm upon request.

Thursday, January 21, 1943

& FINANCIAL CHRQNIQLE

THE COMMERCIAL

278

Calendar of New Security Flotations;
filed

Corporation

Nu-Enamel

registra¬

for 106,500
shares of common stock, $1 par value
Address—8 South Michigan Ave., Chicago
the

with

statement

SEC

Business—The company Is engaged in the

trade

"Nu-

name

the com¬

Armstrong

manufactured

are

Works, of Chicago, under

Varnish

Paint &

enamels,, paints,

products sold by

The

Enamel."
pany

the

under

distributed
f

lines,

kindred

finish, stains, polish
which are principally

linoleum

varnishes,
and

sale

and

distribution

contract in accordance with

for customers who require large pack-- pay off bank loans totaling $1,000,000,'
of' frozen vegetables or loose frozen to purchase from Twin State Gas & Elec¬
tric Co. 'the utility properties
',
7
7 "■ 7 r- •«'
and other
Offering—Offering price to the; 'public, assets of its New. Hampshire' division $4,»

ing

Lloyd and all or any part of 34,000 shares

the company's

commodities.

mitment

The

There is

purchase

principal

pay

said

any

underwriter

firm com¬

has

Detroit,

Mich,,

cents for each share

chased

the

the selling

the

Industries
of 5

stock pur¬

principal underwriter

from

Offering price to

offered

the

sellers of

Nu-Enamel

amendment

in,

ment

Aug. 26 filed
registration state¬

Corporation

giving

its

offering

public

the

price

tures

1942
by Floyd D. Cerf Co.

14.

Offered

•<

the

stock

the

loan

with

tion statements will in normal

These issues
which the registra¬

become effective, that

course

filing except in the case of the secur¬
ities of certain foreign public authorities which normally
become effective in seven days.

is twenty days after

These dates, unless
P.M. Eastern War Time

otherwise specified,
per rule 930(b).

of 4:30

are as

77'y,.^ '

7;;:;7:7

;7\

JAN.

.WEDNESDAY,

Metales- cle

Victoria

registration statement with SEC for 1,350,000 shares of common stock and $675,production notes, the latter being law¬

000

ful

United States. •

of the

money

Sonora, Mexico.:

Agua: Prieta,

St.,

•

Business—Company was organized under
The laws of the Republic of Mexico on
23,

Oct.

1942,

the

for

purpose

engag¬

exploring,

ing in the business of acquiring,

developing and operating mining properties
in Mexico, and the milling and marketing
of

ores

therefrom.

concentrates

and

Offering—Offering price is $10 per unit,

of the United States. A unit
consists of a production note in the face
amount of $10 lawful money of the United
States and 20 shares of common stock.
The common stock has a par value of one
centavo (Mexican money) per share.
Underwriters—The offering will be made
direct to the public by the company, and
to brokers and dealers for their own ac¬
counts, or through the latter
as selling
agents of the company.
Assuming that
the entire issue is sold the proceeds to the

lawful money

be $506,250, or $7.50 per
difference representing selling
costs and underwriting discounts and com¬
missions. Statement says Ogden C. Chase,
Francis Piatt and Edward G. Frawley are
believed to be the principal underwriters
under the Securities Act of 1933, as de¬
will

company

Address—7800
New

Glendale.

Ave.,

Cooper

"Y" ;:7..

'"■

from

Business—General character of the busi¬

by the corporation is the design,

done

ness

packaging and wrapping materials in a
variety
of forms of envelopes,- folders,
wrappers,
folding boxes and containers.
Primarily because of the nature of the
plant and products of the corporation, it
is anticipated that the war or conditions
arising. therefrom will not alter substan¬
tially the general character of the business
or products of
the corporation
Underwriting—No firm commitment has
been made to take any of the securities

regulations of the Commission.
The three are officers, directors and pro¬

but P.-W. Brooks & Co., Inc.,
City, is the principal under¬

registered,
New York

writer,
1933

defined in the Securities Act of

(12-29-42)

Offering—The securities

the company.

discharge

and

proceeds will be Utilized
properties and installa¬
tion of mill and
other expenses incident
to operation of the mine property.
Registration Statement No. 2-5082. Form
acquisition

(1-8-43)

S-3.

demand bank loan,
corporation for machinery

acquired

for

balance

and

such

additional

production facilities as are needed.

Registration Statement No. 2-5058. Form
(10-28-42)
>

A-2

withdrawal

for.

Request

filed

material

Nov.

18,

Amendment filed

date

effective

specified

of"

1942

Dec.

1942, to defer

18,

;.v•,

CANDY

CURTISS

;,7:7

•->.

;

shares of

below

present

mined

list

unknown

are

ua.

PALESTINE
CORP.

AMPAL-AMERICAN
TRADING

Ampal-American Palestine Trading Corp.
filed
a
registration statement with
the SEC for 182,000 shares 4%
preferred,

has

non-voting

cumulative
$5

per

stock,

par

value

York City
corporation was organized
of developing trade rela¬

Address—1440 Broadway^ New

Business—The
the

for

,7..:.7.77.7'' ""7.V.

$100

value

Chicago
of the largest

Business—Company is one
leading candy and confection

purpose

United

the

manu¬

States
proposes

consideration

the

credited

shall

received

It is not pro¬
posed to pay any commissions or under¬
writing fees with respect to the sale of
the stock.
Approximate date of proposed
capital account.

public offering Nov. 25, 1942
Underwriting—There is no commitment
of any kind with respect to the sale or
underwriting of the securities registered
Proceeds—Will
be
used
principally in

will

stock,

preferred

Second

Address—25

<-'•

&
Light
'Electric Bond & 8har»
is an operating public utility en¬
principally in generating, transmit
,ing, distributing and selling electric en-.
jrgy
(also manufacture and sale of gas)
serving most of the territory along < tfa«
?ast coast
of Florida
(with exception of
he Jacksonville area), and other portion*

registration state,7',, 777'1./'' • '
'
applied
ae
follow*

amendment

jffectiv#

nent

«53,170,000

redeem

of company's

>60.000

$15,693,370

IS54;

142.667

the

.hare,

(9-17-4H

427

filed

Amendment

7.;

effective date

pany;

Y:7'*/Y 7%-7 77'--; 7":';

PUBLICATIONS, INC.

NORTHWEST

Inc., has filed

Publications,

Northwest

old

and

profit-sharing plans for its employees
in reduction of indebtedness on

$900,000;

tional working

surrounding

of Palestine and to afford finan¬

resources

cial aid to commercial, banking,

and

dustrial

agricultural

and

operative

otherwise,

Palestine.

credit, in¬
enterprises, co¬

and

relating

1942, in New York,

Company was organized Feb.

St.,

Fourth,

East

Address—55-63

Paul,

ers.

The

the

efforts

securities

Minn.

St.
7;'-

first

preferred

together with air

stock

thereori after
of recapitali¬

properties $200,000, and for addi¬
capital $75,700
Registration Statement No. 2-5059/ Form

A-2.

use

best

their

for

efforts

public service co.
Hampshire

registration
set for Dec,: 15, 1942, as SEC states it has
reasonable

includes

believe

cause

"untrue

statement

that

statements

material

underwrit¬

has

will

sold

through

CORP.

filed

bonds,

mortgage

statement with
first and general

series

3)4%

$1,001,000.

Date of proposed public offer¬

mon

ing Is Dec,

Proceeds—A
vestment

ceeds of

this

number

the

schemes for in¬

corporation

issue

have

been

the

pro¬

considered

its directors.
No final decisions have
reached, and no commitments have
been made, except that, in a general way,
and subject to re-examination, the direc¬
tors
believe
that
the
corporation could
with profit to itself and with substantial
by

been

oenefit

Palestine,

economic

the

make

organization of
investments for the pur¬

indicated in its organization
Registration Statement No. 2-5061. Form

poses
A-I.

35,715

issuance

will

exercise

rights with

filed a registra¬
with the SEC for $360,000

commercial,

tomers

Hampshire

manufactures

also

New

Underwriting—To

and

Vermont,

distributes

supplied

gas.

justments

poraneously
with
the
issuance of
the
bonds, company will issue and sell 3,284
shares of its common stock, no par valu*,

the

conversion

price,
not
35,715 shares

now

anticipated, more than
will be required for issuance upon exercise
of conversion rights, and
it is intended
that present statement shall cover,
such
additional

quired

shares,

for

conversion

issuance

any,
upon

may

exercise

be
of

re¬

the

rights.

the

The

products
process,
and

uses

but

major

quick-frozen

portion

its

vege¬

frozen

quick-frozen
the

other

by the Birdseye
company
has developed

processes

sell, the

competitive bidding pursuant-to
of
the Commission.
Contem¬

New England

institutions.
Proceeds—The aggregate

Business—Company is engaged primarily
the manufacture

rules

for

quick-freez¬

said

bonds,

be used to

net proceeds of

notes and common stock will
principal, premium and 30

pay

interest in the redemption
the
company's first mortgage

days'
of

aggregating

$18,929,000

face

all

bonds

amount,

ap¬

proved conditions in Mexico indi¬
cate that results in 1943 should be

■.<.!*;■/: •';

satisfactory^

very
'

Copies of the study may be had
from J. L. Schiffman & Co. upon

YX '7

request. ••'

Investment Trusts

can

so.

:,-77v7f;77'7-:;7-i7,'-7

(12-28-42).

throughout this country, the huge

expansion in the supply of money
and credit, the prospect of a pe¬
riod of great industrial 'activity
following the war* the reasonable
level of. equity prices in relation
to average

corporate earnings and

the favorable relationship of com¬
stock yields and bond yields,

mon

justify confidence in the longer
prospect for common stocks."

term
,7.-;

•

-'7;-i"

:'.7'7,7:

■

"'What Of

19437" asks Hugh W.
Long & Co.'s "New York Letter."
After
reviewing
the ; generally
brighter prospects for the United
Nations, the letter has this to say:
"So

far

our own

business is

concerned, we have experienced a
gratifying increase of volume in
the closing months of the year just
ended, which we ascribe largely

Company, Inc.>

Broad

Street, "New York City,'
that G. Everett Parks is

associated with them

as- man*

of their investment depart¬
and that Charles R. Leake,

this

department.
Mr. Parks
formerly manager of the re¬
department of Josephthai & Co. and prior thereto was
in;charge of the over-the-counter
department of McKeivy & Com¬
pany in New York.
Mr, Leake
was
with Craigmyle, Rogers &
Co. and D. Mi S. Hegarty & Co.
Sidney V. Duncan/ Assistant
Treasurer of R.
S. Dickson &
sales

Company,

being

ing to realize 'the vital necessity
diversifi¬
cation and continuous supervision
under war conditions,

of adequate' breadth of

"An

firm's

home

factor is

doubtless

for •the' investment bf
idle 7 funds
which > are .visibly
shrinking in real value under the

onslaught

rising

"We

believe

that

these

•

forces

ahd that
the distributors and sponsors -of
well managed investment
com¬
panies may ; look forward with
confidence

considerable
new

year.'l

7:: Yvv7' "(
Affiliated

National Securities Series

(

Bond Series

Preferred Stock Series.^,

712
-

,12

„

.14

Income Series -7-7^-

Sea¬
board Air Line Railway Company,
current

situation

**Serie«. uL

•

Jan. 15,1943
Distribution

Building,' Charlotte, N. C. * ML
Low-Priced Bond Series,. 7
Duncan has been in the New -York

The

the

to
r

Dividends
7 7-77.0,"
Fund, Inc.—Quarterly
dividend of 3c per share paid Jan.
15 to holders of record Dec. 31,
1942. : Company reported net inyestment earnings for the quarter
at 41//2C per share.
v

office to
office, Wilder

Seaboard Outlook Good

7..,7-'

will continue to. operate

transferred

office since 1932.

cost

living..7Yiily;t:*'.• Y!::'-':7..'77/;77;

from the New York City

the

added

presstfrd

.09

Low-Priced"; Common
proposes to

Publfc Service Co.^ parent
of
the company,
at a price of $60 per
share flat or $197,040, and Will issue and
sell $2,500,000 face amount of its unse¬
cured notes
at private sale to financial
to

amendment.

Offering—Company
bonds

soon

post-

effective

CORP.

78,300 domestic,

industrial, agricultural and municipal cus¬

upon

the

Business—Company

respect to the de¬
bentures, and the remaining 11,500 shares
will be offered for sale.
Company states
that it is possible that due to future ad¬

12, 1943, to defer

date.

ANDREWS
statement

value.

par

Address—Bridgeton, N. J.
Jan.

P. L, Andrews Corp. has
tion

for

conversion

tables.
P.

without

registered,

reserved

(11-19-42)

Amendment filed

effective

1,
stock,

stock

1942

5% sinking fund debentures due
1954, and 47,215 shares of com¬

Registration Statement No. 2-5077. Form

tail

sale to about

Dec.

this order

250,000

the issuer

plan,

percentage

was

Offering—The offering price to the pub¬
lic will be $5.50 per share, for a total of

employees

owned

2nd, is also associated with them

engaged princi¬
pally in the generation of electric energy
and
its
transmission,
distribution
and

directors and

the

This

the

Puget

ager
ment

Jan. 1, 1943, maturing Jan. 1, 1973.
Address—1087
Elm
St.,
Manchester,

company—to

party, for the
recapitalization

if approved,. would
of voting power ol
Engineers from 77.4%
to
1.8%.
Engineers has been ordered by
the
Commission
to dispose of its entire
interest in the company. * Engineers has
advised Puget that it intends to comply
Puget.;

reduce

now

dated

for

Engineers

announce

Hampshire

New

$22,000,000

for

plan

R; S. Dickson &

•;

registration

SEC

the

N.
DEERFIELD PACKING

Co.—parent

joined
a.

new

Co.

Service

Public

suspension

Service

1935,

Duncan To Home Dice

;;.7' ,>7

(12-29-42)

of
or

Dickson In v. Dept.;

Registration Statement No. 2-5080. Form
A-2.

to the fact that investors are com¬

They are
period of

dealer-managers.

amount

$14,274,900,

Parks I Leake Join

-7

act

Act

approval

A-2.

Underwriting—The corporation has* not
entered into
any
agreement providing a
firm commitment for the purchase of sub¬
ordinated debentures.
It has entered into
an
agreement with Kalman & Co., Inc.,
Wells-Dickey Co. and Harold E. Wood &

(11-14-42)

Hearing

Public

;

the corporation,
but not beyond May 15,
1943. The plan
shall become effective automatically, when
holders of 80%
of face amount of first
preferred deposit their exchange agree¬
ments, or by declaration by ' the corpora¬
tion, at its
option, upon receipt oi ex¬
change
agreements
covering
less
than

Co,

face

determined

80%.

D,,. in

102%,

at.

Company

with

the holders of first preferred may
deposit their exchange agreements prior
to March 15,
1943, or' such later date as

such

series

which' Puget

zation,

bonds,

ing

Deerfield Packing Corp. has filed a reg¬
istration statement with the SEC for $1,-

redemption

and

There is pend¬
ing before the SEC an application-under
Section.. 11 xe) of.the Public Utility Hold¬

Business—Engaged in the publication of
In the cities of St. Paul and
Duluth, Minn.
77:-7:
'•••
Offering—Under the plan of recapitali¬
zation the corporation offers a 512 %
de¬
benture in
the face amount- of $100. for
each share of its 3,825 outstanding shares

facts"

Underwriting—There are no

$9,027,000,

grand total of $59,881,993.

farm

its

$36,039,500 at 101 ¥2-%;' pr: $36,*
redemption of the. old: bonds,
in face amount of $8,850;000 at

$13,995,000

registration statement with SEC for $382,500
5Vz %
subordinated debentures, due
Dee. 1, 1957.
?»■' Y

60
days following the effective date of
of similar types of business 'the registration statement
to effectuate
$700,0001 additional farm lands $750,000;
exchange of the securities registered for
trucks $100,000; raw commodities for pur¬
the
corporation's outstanding first pre¬
-. '7:7
pose of stabilizing inventory $250,000;
'77'7/
to ferred stock.
Proceeds—Plan of recapitalization.
provide funds for payments under pension

territories; to
assist in the development of the economic
and

tine

102%,

sale

-debentures,'

580.093;
series

new

general funds of the com¬
to be used for; Redemption of
bonds,
series
A, 'in: the
face

are

amount

from the

proceeds

with

old

the

by ; post-effective

supplied

•

bonds'and the

new

together

to defer

1943,

Jan.
.

of.the

7;-'.'Y

permitted

preciable increase in production.
The study concludes that higher
metal prices, plus generally im¬

(Continued from page 271 >:■■ .77.
;?;7,7.7.77.' .7- -y,i'77/77'.'» ' basic / trend of political '• thought

Froceeds—Net

2-4845.r. Form

777;;.7%/

will

amendment.

Further de¬

supplied
by
post-effectivt
amendment ./■ ;77,; 77 •"7)7'. "■ 7:77'
Registration Statement No.

has

In addition,: company

mill for treatment of .oxide

which has

ores

Offering—"The offering price to1 the pub¬
lic'

specify the coupon rate

new

't67the:.cpmpan-yfY:L77--Y:'7'7:;7'-':'v,-.'

at Slid pei
of company'*

stock, no par.

preferred

tails

tember.

multiple of,%%) and the price to be paid

at 102^4, the $52,First Mortgage 5» of

redeem

inthe

specify the coupon rate (whiqh shall be a

■

will

Proceeds

beginning with June; and higher
prices beginning with Sep¬

business

principally

(which shall
multiple of. 14% ) and. the price to
be
paid to the company for the bonds;
and each bid covering the debentures shall
shall

silver

bidding. .The invitation for bids-will proj
vide
that, ..each- bid covering
the bonds

underwriters anc
supplied by post

American

the

Refining Col which
owns the 30% ■ remaining: interest.
The subsidiary benefited substan¬
tially in the second half of 1942

will be supplied-by post-effective amend¬
ment.1 The company proposes to sell both
the bonds and debentures at competitive

registeied are to be sold by company
mder: the competitive bidding Rule U-51
if the SEC's Public Utility Holding Com*

administration

SmPIting

from increased lead and zinc prices

western

les

price

.engaged

urgica Mexicana, one of the lead¬
ing mining enterprises fn Mexico.
These properties are under the

of: Washington.-

the1 State

and

portions of the State of Washington, com¬
prising approximately 4,500 -, square miles.
7 Underwriting—Names : of. : underwriters

orrering—The securi

Act.
Names of
to public, will be

central

selling

Florida

pany

the

generating,, transmitting,, distributing "and
electric energy• in all or parts of
19
counties
in
the western and central

System)

ana

supplied by amendment.;..
Stuart
Building, Seattle,

located

portions

American

Power

Underwriting

:''Y77;i

erties

subsidiary

,1972,

■'
Business—Applicant's,, properties
con¬
generally speaking, of electric, gas,
-steam
heat
and
telephone utility-, prop¬

Fla

Business—This

mortgage, bonds'
and $8,000,000
1951. - The interest

first

Dec.

sist,

Miami

Ave.,

Dec.

due

CO.'

with; the

statement

Address—860
Wash:

sup

Light- Co.: has

Power ' &

$52,000,000

due

rates will

tlu

dlvident

the

the acquisition

tions between the United States and Pales.

series

debentures

Preferret

rates

and

by amendment

may

Address—622 Diversey Parkway,

the

Interest

Par.

Debentures,

Sound,

registration

SEC. for

Mortgage

Cumulative

share#

$100
and

plied

filed

rights to dividends accruing
Dec. 1, 1942.
Under the plan

to offer
the participating
preferred shares regis¬
tered, at $100 per share. The entire amount

OF OFFERINQ

140.000

77.,

•

Registration Statement No. 2-5076. Form

Puget

registers

1971; $10,000,000 Sin*
Debentures,
due Oct.
1,
1956
Oct.

due

Bonds

participating preferred stock, par

Offering—Registrant

et Issues
whose registration statements were filed
twenty days or more ago, but whose
offering dates have not been deter¬
We

CO.

Candy Co. has filed registration
statement with the SEC covering 30,000

facturers

UNDETERMINED

to-

newspapers

and

DATES

CO.

Light Co.
$45,000,000
First

Stock,
rate

LIGHT

State--located

Twin

by merger.

v-7',\\

POWER

Fund

<ng

proposed

to reimburse the

Curtiss

Proceeds—Net

for

12,^ 1943,

the;, remainder

NEPSCO,of

assets

Vermont

Earnings .of the company, ac¬
A-2. -.(12-24-42)--:
cording to the study, are derived
v-.
Amendment filed Jan. 8/. 1943,, to defer
T
mainly from its ownership 'of' a
defer, effective- date. :" .7/
'7 ' /;-7.7, ---,7 77:
70%7interest in Compania Metal-

'Y>

•

Power

SEC

vith

Kinds,

offered

will be

prices ranging from ,99 Va to 102 14 de¬
pending upon maturity date
''77.
Proceeds—Net-proceeds will be used to

fined in the

moters of

■■

filed Jan.

Amendment

the

general, funds.... v: 7 ,
.
Registration Statement No. 2-5078. Form

A-2.

Co.-' Third

Power

the

unit,

York,

bonds,
1943 to

5 '/a %

development, manufacture and sale of paper

and Fourth

Address—Pan-American Ave.

1957.

has filed

convertible
maturing serially
-V;'

mortgage

series

METALES BE LA VICTORIA S. A.

Central Maine

subsidiary

and premium there¬
added to the com¬

interest

with

Co.

step contemplates:. the- -acquisition. by Cen¬
tral
Vermont, Public
Service,. Cp-.r -also, a

due on a bank
of. $600,000, -logethei

pany's

if
first

the net pro-,

$480,000

are

Street, New York City,- Dividends
of $73.50 per share have been paid
on
the- preferred
stock over a
period of the last eight years, the
study points out; this leaves a bal¬
ance of $35 a share in arrears still
due.
■'« • % 7:'..7,. V'
' 'I/: :
Y.

step

gaged

Offerings will rarely be made before the day follow¬
ing.

Inc./

to discharge

used

Securities is the subject of a study

by J. L. Schiffman & Co., 60 Broad

of. NEFSCO and
second step in the

subsidiaries

are

transactions are, the
proposed simplification- of NEPSCO. - First
was: the recently .consummated mer¬
ger of Cumberland County Power & Light

amend¬
is

Sons,

the debentures and

amount

accrued
Balance

panies

PUGET SOUND POWER & LIGHT

list of issues whose registration state¬

grouped according to the dates

are

balance

on.

Sale

the

from

effective date.

filed less than twenty days ago.

were

■

deben¬

The post-war outlook for Towne

the-common' stock-.

for

Proceeds—About $487,000. of
ceeds

Florida

Following is

the

named

Rollins

underwriter

FLORIDA

ments

for

underwriter

others

with

ment.

per

Registration effective 5:30 p.m. EWT on
Sept.

furnished by amendment.

principal

Towne Securities Bright

281,897, to purchase certain assets from
New England: Public Sei'vice 1 Co; $197,080
and
other - corporate
purposes.
All Com¬

of, common

Underwriting-r-E. H. Rollins & Sons, Inc./

:is

common

Registration Statement No. 2-5029. Form
A-2. (8-1-42)
"■

and

debentures

stock will be
;

are

already Issued and proceeds will go to the
individual

the

named

will be supplied by: amendment

Proceeds—The

amount

common

stockholders.

the public

shares.

agreed

finder's fee to American

Corp.,

formulae and specifications

Underwriting—Floyd D. Cerf Co. is thr
principal-underwriter.
'
Offering—Tne
principal underwriter Is
granted the option, until close of business
Dec.
31, 1942, to purchase at $1.50 per
share all or any part of- 72,500 shares of

Study Reveals Future of '

ages

from Gladys Lloyd.

NU-ENAMEL CORPORATION
tion

stock of the company from; C.

common

OFFERINGS

Stock

■

.05

International Series

.Ol^

First Matual.Trust Fund

.14

This (fund was originally of¬
offers 7 interesting
potentialities fered late
in OctobeL
/
with a favorable outlook, accord-,
Dividend Shares, Inc.—A quar¬
ing to a circular just issued by
L.- H. Rothchild & Co., 11 Wall terly dividend at the rate of 2c
-

Street, New York City.'

Copies of

containing details on
Seaboard Air-Line and the recapi¬
the circular

talization plan
ceivers may be
uoon

request.

offered by the Re¬
had from the firm

per

share, payable Feb. 1 to stock¬

holders .of record. Jan, 15v 1943./
Bullock
Fund, Ltd.—A quar¬

terly dividend at the
per

rate

of 15c

share payable Feb. 1 to stock¬

holders of record

Jan. 15, 1943.

Volume

THE COMMERCIAL &

Number 4144

157

Portland Electric Power 6s of 1950
bond.

(Continued from page2!67)

their

valuation

the

Portland

'General Electric stock at
OIK)

$25,800,-

Qf the Portland Traction

and

stock

total

valuation

well in

$6,700,000

Electric

bonaholders

equity

for

holders.

making

these

stocks

of the claim of the

excess

Portland

thus

Power

Income

providing
an
Preferred. stock¬

The valuation basis used

ful

by comparison with other similar equities,
v./.
•1
'* '
'• It is believed
by many that fair¬
-will dictate the allocation of

ness

all

practically all of the avail¬

able

assets

the

income.bond-

lolders, with little
ocable

the

nothing al-

Preferred

stock¬

holders.

The

ings

Portland

General

Electric

Company supplies electric pov/er
light service to the City of

If the valuation

were

still

about

made
earn¬

the

$550r'

equal

Electric

land

value
Electric

the

Port¬

Electric

effect

stock

to' the

issue

stock

and

for

the

basis

for

land Traction
pn

give

the

have
of

conserv¬

estimated

1942

net

Electric

for

the

Income

Portland
bonds.

different

Power

total

manner,

bonds

market

valuation

approximately $5,680,000

Bonneville

should

Power

result

either

the

Portland

Gen¬

Company stock and
approximately $600,000 net income

the

Portland

Traction

Company

stock, or total current
net earnings of approximately
$2,390,000,
A continuation of these

income Of

$600,000 for Portland
Traction
Company would indicate a value

earnings

for

2%'

would

years

bond

Portland and
in

50 other

some

Bonneville

long-term

the

granting

power contract

Bonneville to supplant the present
day-to-day basis.
Last

Bonneville

summer

re¬

ported to have bid $55,500,000 for
the

Portland

General

Electric

willing
be

increase

stantially

however,
and

its

bid

agreement

sub¬

could

The

was

agreement
at

reached.

asking price,
$66,600,000 and an
the company

between

Bonneville

not

was

reached

that time.
Based

The

Company,

the

Bonneville

5Vr

General

31,

earnings

$44,008,000

bonds

and

Electric

$5,318,287

due

and

ent

obtain

after

banks,

deduction-., of

intangibles
and
depreciation
reserve,
amounted to $58,353,005.
.

Total

•

capital

and

surplus

Portland General Electric per the
Dec 31
1041 balance sheet stood
at

$22,774,255,
share.

mon

$96.17

all

Com¬

per

the

Common

shares of Portland General
tric

are

the

Portland

come

held to

Electric

Power

the

balance

would

equal

bonds,

hook

value

Elec¬

be applicable

to
In¬

sheet

$1,400

in Portland General Electric Com¬
mon
stock for each $1,000 prin¬
cipal amount of Portland Electric

Power
On

Income
the

1941

bonds.

basis

the

sheet

balance

Dec.

31,

Portland

Traction

Company the net book
Value of that Company's Common
stock,' also entirely
owned
by
Portland
Electric
Power, would
equal
an
additional
$320
per
$1,000

Get This

Electric- Power

Portland

Income bond.

Flag Flying Nmv!

During the past twelve months,
Portland

General

Electric

Com¬

has reduced its funded debt
$700,000 and increased net

pany
over

working capital over $900,000. In
the same period, Portland Trac¬
tion Company has reduced its in¬
debtedness

$650,000 and im¬
proved its working capital posi¬
in
excess
of $500,000, In

This War
over

the ; land
that

over

Savings Flag which flies today

companies, large and small, all
means

business.

10% of the company's

across

first,

means,

gross

words,
Portland Electric
Power Company's equity in these
subsidiaries

two
.

has

increased

iroughly $2,750,000 by comparison
with the values given in the fore¬
On

basis

the

;

which

ings,

method

provide
evaluating

underlying

current
a

sounder

the

Portland

the

Power, it is pointed out that the
het earnings of Portland General
Electric
stock
SI 10

equal to approximately
$1,000 Portland Electric

are

per

Income

Power

For

30,

applicable to its Common

the

bond.

months

war

ends!

keep the War Bond Pay-roll Savings
Plan rolling in your firm;
Get that flag fly¬
ing now! Your State War Savings Staff Ad¬
ministrator will gladly explain how you
may

It also

means

•

that the

employees of all these

doing their part.for Victory
by helping to buy the guns, tanks, and

companies

are

planes that America and her allies
win.

means

so.

and prosperity tomor¬

If your

that billions of dollars

are

being

diverted from

roll

firm has not already installed the Pay¬
now is the time to do so.

Savings Plan,

"bidding" for the constantly
shrinking stock of goods available, thus put¬

For full

ting

wire: War

;; ;

must have

Victory today

row^,

brake

inflation.

And it

means

that

details, plus samples of result-getting

literature and

promotional helps, write

Department, 709 Twelfth Street NW.,

for post-war

Washington, D. C.

Nov,

Elec¬

readjustment;

tric's net income

$7.55

was $1,789,965 or
Common share.
There

per

are

14.57 shares of this stock held

the

Electric

bond, and
able

Power

$1,000
Income

total earnings applic¬

14.57

$110.
i

for each

Trustee

Portland

amount

stock

ratio

ten

were

times

placed

current

earn¬

ings which is somewhat below the
present average market ratio of
similar
electric utility equities,
the value of the entire issue held
bv the Trustee for the Portland
Electric

Power

income

bonds

would amount to $1,100 per $1,000,

Save With

If the value of Portland General

Electric

Savings Staff, Section F, Treasury

billions of dollars will be held in readiness
ended

Portland General

1942,

buy when the

voluntarily.

assets

Electric

can

For

earn¬

10% of the national income,

being invested in War Bonds by the workers

•

going paragraphs.

what

saved in War Bonds now, month after month,

pay-roll is

tion

other

Think

its

Com--

Portland

Company

the full

bonds.

equipment

a c c o u

$5,164,578
$5,390,376

owned

Power

notes

would

then be feasible and
place the In¬
bondholders in a position

had

plant

come

Property,

Electric
Power Company.
An
early reorganization of Portland

Electric

collateral

Portland

applicable

stock

mon

Au¬

1941,

basis,

consequent substantial increase in

com¬

Power

would

Electric

Dec.

outstanding
and

;

ri>

Portland

obtains

Bonneville

benefit

earnings applicable to their

only

of
not

position to refund its out¬
standing debt at a considerable
saving in interest charges with a

It is the larg¬
purchaser of -power

Bonneville

thority:" >•■■■

are

good

tem in:the country,
the

from

long-term

General

Power

properties

company

contract

power
on

the

est individual

Electric

per

indicated.

electric

but

territory.
It is
the major utility in Oregon and
its rales are reported-among the
lowest of any electric power sys¬

from

Electric,
$750

sold

hhd

munities

assets

Portland General Electric

General Electric

properties and additions, with in¬

for

value

esti¬

other

General

Portland
the

and

the

in the sale of the electric
proper¬

dications that Bonneville would be

Electric

ties of Portland

com¬

eral

this basis

from 2 to 31/2 times the

market

$1,789,965

valuing The Port¬

Co. stock might be

earnings and

bonds

pared with current net income of

Electric

Income

$16,250,600 outstanding Port¬

land

Traction

the basis of about three times

current

the

Stated

Common

Power Income bonds.
ative

$1,000

entire

Portland

;

Portland

approximate
Income

Electric Power

Company, also held by the Trus¬
tee

$55,500,000
value

the

Portland

negotiations
going on for an

been

period with representa¬

based only on the Portland

General

have

tives

$1,210,
are

Power bonds.

Authority,

Power

would appear to have a sound val¬
uation- worth
of
from
$660
to

compared

indications

Electric

conclusion

extended

current

value

mated

The

Electric

$350.
These

bid

Portland

earnings
valuations, therefore, the Portland

with the current market of about

course

279

equal the present market price of

that

bond.

On the basis of current

would

$1,000

per

$1,800,000 for its Com¬
stodk, or the equivalent of
$110 per $1,000 Portland

Electric Power Income

Portland

Common

Power

about

mon

basis of only five times

General

and

••

the

by the' Independent Trustees ap¬
pears to be far too high and fanci-.
■

on a

FINANCIAL CHRONICLE

intfs Bonds

the

pres¬

THE COMMERCIAL & FINANCIAL CHRONICLE

280

H Vnover 2-0050

Thursday, January 21, 1943

Large Attendance Anticipated For Seventeenth

Teletype—N, Y. 1-971

Ft. Pitt

Annual Dinner of N. Y. Dealers Association
The

seventeenth

anniversary

dinner of the New,York Security
Dealers Association will' be held

FOREIGN SECURITIES

Thursday,1 Feb. 4,

at 7

1943,

o'clock at the Grand Ballroom of
The Waldorf-Astoria, according to
announcement made by Tracy R.

PAM. MAMS 4 P.O. INC.

Engle;
SO Broad Street, New York

Engle,

•

Chairman

-Abbott
the

dinner

Co.,
com¬

mittee.

Willard

Col.
Direct Wire to C. M. & Co. Inc.

Chicago, III. Phone State 6693

Chevalier,

pub¬

lisher of Business Week, who has

just

Co.;

Hanns

Kuehner,

bers

"War Is Our Business."

National Association

of. SO,

Preferred

and Internal Loans
Mexican Interest Arrears Cfs.

Bought—Sold->~-Quoted

M. S. WIEN & CO.
Members N. Y. Security Dealers Ass'n
25 Broad St., WT.Y.

Teletype

HAnover 2-8780
Y.

1-1397

■

/' Mn O'Kane, wfro is in charge of
a

good demand for

The Business

of the Board of Governors of

man

Mexican External

Reilly, J. F. Reilly & Co.; Stanley
Roggenburg, Roggenburg &
Co.; B. A Seligman, Ward & Co.;
Otto H. Steindecker, New York
Hanseatic
Corp.;
Percival
J.
Steindler, P. J/ Steindler' & Co.;
Abraham Strauss, Strauss Bros.;
Stanley M. Waldron, Wertheim &
Co.; J. Arthur Warner, J. Arthur
Warner & Co., and M, S. Wien,

(is

Sylvahia Electric Products

Joyce,

Following Col. 'Chevalier's dis¬ tickets, reports
course; Henry G. Riter, 3rd* Chair¬ reservations.
the

Kuehner & .Co.; T. Reed Rankin,
R, H. Johnson & Co,; John F<

completed a tour of the
United States, will address mem¬ M. S. Wien & Co.

Bridge Works

Common.

Se¬

Dealers,
will speak on Wilson-Jones Officers
/'Benefits to- the public and; the
Guests of N. Y. Exchange
Securities Industry through Self
The common stock of WilsonBy S. F. PORTER
Regulation." W. W. Chaplin, radio
commentator who has re¬ Jones Go; was admitted to trad¬
The Government mart continues to display an inherent strength
ing on Jan. 18 on the New York
that is as>,impressive as anything we've seen in a decade. . . ^ cently returned from Russia, will
Carnegie Endowment for Inter¬
talk
on
"Behind
the
Russian Stock Exchange ahd Fred D. Pitt,
Considering the news on budgets, the outlook for the debt, the fact
President, and Harold F, Graves, national Peace Year Book, 1942—
Line."
Mr. Chaplin will discuss
that we've just had a record-sized borrowing and are going into
Vice-Presideht, WCrd guests of the Published by the Endowment, 700
conditions in Russia and India.
another in the spring, the steadiness of the list and the constant
Jackson Place; N. W., Washington,
John J. O'Kane, Jr., John J. Exchange and witnessed the first
demand are of prime significance. . .
You can't look at the mar¬
transaction on the floor in their D. C.—Cloth.
O'Kane, Jr., & Co., and John F.
ket's rise without noting first the background,
And once you
Sammon, J. F. Sammon & Co., stock. Wilson-Jones Company, in
realize the surrounding factors, you know truly how good a showing
Changes in Consumer Buying
manufacturing ldoseare Vice-Chairmen of the dinner addition to
the market is making.
;
Practices Resulting from Tire and
committee
which also includes leaf books and ledgers and filing
Gas Rationing—P. D. Converse,
A setback of minor proportions does seem in order but ap¬
Harold Allen, Allen &. Co.; Frank supplies, is also producing ma¬
S.
parently, the technical position is so strong that little, if any
Bennett, Brown, Bennett 8c chine gun cartridge links, fuse Department of Business Organiza¬
tion and Operation, University of
decline is going to materialize.
Instead of falling back the
Johnson; Gustave L. Birnbaum, caps, electrical terminals for air¬
Illinois College of Commerce and
Birnbaum & Co.; George L. Col¬ plane wiring and sundry parts for
list has been holding under sufficient buying power to indicate
Business Administration, Urbana,
a renewed rally may develop before the end of the month.
lins, Huff, Geyer & Hecht; James gun carriages.
.
.
.

curity

Man's Bookshelf

...

Dealers

York

New

optimistic

are

market to advance into

new

billion dollar financing comes up.
either

domestic

the

Currie, Hart, Rose & Troster;
Henry De
Meester, Henry De
Meester & Co.; Vincent Fitzgerald,
Fitzgerald & Co., Inc.; Leo J.
Goldwater, L. J. Goldwater & Co.;
Irving A. Greene, Greene & Co.;
Albert C. Hugo, A. M. Kidder &
Co.; Wellington Hunter, Hunter &

Of course some news

...

foreign front may change this setup

elaboration.
The important point is that the Government mart today
is in an excellent shape, good enough to withstand any number of
shocks.
And you can interpret that remark in terms of

over
,

of the

ability

about the

high ground before the next multi-

night but that's

factor

obvious it needs

your

portfolio.

own

CANADIAN

THE

a nation¬
rapid-fire
Quick premiums appeared, the offering
few hours and the whole operation gave

overscribed within
the market a new lift.
was

was

...

But what's of more immediate
interest is the possibility of switches from the U, S. Government
l%s of 194$ to the Canadian Government 2 V2S of 1948.
Not
,

You must decide that one
yourself, determine the advisability of going into some Canadian
loan, see if your portfolio can stand it.
Assuming your port¬
folio can—and a casual glance at the Dominion's financial and in
that the change is recommended.

dustrial status today will reveal how

magnificently Canada is man¬
aging its war effort—you might like to add some of the 2V2S. . .
Bonds due in five years, selling at around 100carry txk% interest
U. S. 1%'s due six months later in 1948, selling around the
.

price.

■./.

The
and

various

100.24

Management
Can
Inte¬
grate Negroes in War Industries-

Prepared by John A. Davis—New
,

York

State

mittee

are

selling at 100.10 to yield 1.67%.
1951/49

War

Council

Com¬

Discrimination in Em¬

ployment—Paper,

ers

issues of

How

Charges to Consum¬

for Small Instalment .Loans—•

Household

selling at 100.19, 100.21
yield from 1.86 to 1.89% depending on the month of
are

Finance Corporation,
Michigan Avenue/Chi¬
cago, III.—Paper.

919 North

That, in itself, was good.

the Board, Eugene Lokey, VicePresident, Phillip L. West, Acting
Director of the Stock List Depart¬
ment, and Thomas Benton, floor
specialist in the company's shares.

SWITCH

The l%s of 1948

Canadian issue floated last Thursday by

out-the-window deal.

111,—Special Bulletin No. 2.

Opinions
ANOTHER

AND

syndicate headed by Morgan Stanley & Co.

same

entertained at luncheon
by Robert L. Stott, Chairman of

...

ISSUE

The $90,000,000

wide

«The visiting officers of the com¬
pany were

•

maturity.

...

The

suggestion here is that you may find it profitable to freeze
profit in your l%s and shift into the slightly longer 2s.
You've still a bond with a definite floor at par,
You're not
extending the call date so much (the l%s are due in June, 1948;
the 2s are due in June; September and December of 1951, callable
(Speclal to The P)nanc!al C%«mtcle)
in the same months in 1949) and if a refunding of the 2s is decided
NEW ORLEANS,
LA.—Lewis
upon before maturity, the extension is small indeed.
The
B. Scranton has become associ¬
price of the 2s is only slightly above the price of the l%s.
ated with Wheeler & Woolfolk,
And your current interest return is boosted V4%.
Inc., Whitney Building, members
This may stimulate your interest on two grounds:
(1) the cou¬
of the. New Orleans Stock Ex¬
pon is increased without undue extension of maturity risk and (2>
change. Mr, Scranton was for¬
the profit you have on the 1 %s is frozen, , . ;
merly president of Scranton &
INSIDE THE MARKET
Co., Inc. and was an officer of
, /'0
your

Lewis B. Scranton Is

...

At Wheeler-Wooifolk

There's
ANOTHER

SWITCH

Consider

intriguing.comparison, in .interest rates here.

the 2V2S

/'//

• -

Bronson
&
Scranton, Inc. and
Municipal market all but ignored President Roosevelt's refer¬
Sutherlin & Scranton, Inc. In the
ence to; tax loop-holes and his obvious implication that tax-exempt
past
he
was
connected
with
municipals belong in this clarification. ,
No selling of im¬
Moore & Hyaras, Dillon, Read &
portance showed up.
Reference was expected, was entirely
Co, and the National City Com¬
in accordance with known Administration attitude.
t
As for market's reaction, feeling is that even if Congress does pany of New York.
take action on this subject at this session, interest on outstanding
State and local issues will remain exempt/and only interest on future
issues would be subject to income taxes,..
// /
:
Same holds .true for taxing" outstanding Governments.
,
.
There's a subject that once held the .nation's, attention^ now is as
.

of 1972/67, selling at 100.29 to yield 2.44%

...

to call date.

Then

the

consider

2.46% to call date.
to

2%s

1968/63, selling at 100.18 to yield

And the

yield &46% to call. date.

2V?s of 1967/62, selling at 100.15
..
./:
/// /

//"!>'. .The 67s are" registered, the

All three bonds are taxable.

Robinson And Hunter /

68s
1

can

be bought in either form,'.

What's the difference?

;

...

■'

Why then "are the 2^2 s of 1972 selling

at the

highest price—particularly when this is the longest issue out?
The answer, of course, is simple.
The 1972s are the only longterms that the commercial banks can buy.
.

And that leads to the point of this switch.
non-bank

can

investor hold the

switch into

...

general policy,
seems

advisable.

;

As a.

switch from the 1972s into the 1968s or 1967s
^
...

This may be of direct interest to insurance

dustrial corporations/

the

1972s, a probability
price.

issue

companies and in¬
Especially if a profit can be frozen in
most institutions bought these at the

'•

story from Washington that Congress soon may j
on funds held by banks in war loan
Also action would eliminate these funds from,

eliminate FDIC assessment
♦

Estimate is

reserve

requirement estimates.

that

and reserve

None

Loans to brokers and dealers

;

fort¬

seven-day period, reflecting re¬
had' subscribed to the Decem¬
ber, issues on margin.
That week, the l%s were at. a % pre¬
mium, tho 21/2S were at % premium and even the certificates of
indebtedness were above the issue price,
The dealers made
money on the "carry", turned over the securities at a straight-out
night

ago

Hunter

and, Hayward H. (Pete)

have
of

been

elected- Vice-

Baum,, Bernheimer

Co., 1016 Baltimore Avenue.

Mr.

Robinson is manager of the firm's
trading department; Mr. Hunter is

opposed to idea, Treasury may sponsor move, which
banks have been requesting for months.
.
Dealers turned a pretty penny on their temporary holdings of
seems

KANSAS CITY,; MO.—Eldridge
Robinson

Presidents

exemption of this, money from, FPIC assess¬
requirements would save the banks as much as
$360,000,000, which presumably would be invested in Government,
obligations.
ment

the December basket.

...

be.

total counted in

1972s at that top price when he

slightly shorter bond; and cut bis price?

can

accounts.

Why should

If there is a reason, it must be peculiarly personal.

important

...

Baum Bernheinier VPs

dead

charge

the

corporate

Both have been

ciated with

Baum, Bernheimer Co.

for

number of

went off $132,000,000 in

asso¬

years!

payments of loans by dealers who
.

N.Y. Bond Glob To Hear

WARREN BROS.
New Class "B" and "C"

The Honorable James W. Wads-

worth, Jr., former Senator from
—

Sold

—

New York and at present a mem¬
ber of the House of Representa¬

Quoted

tives, will be guest of honor and
speaker
Bond

N. Y. BOwting Green 9-7027

Bell Teletype

JS(Y 1-61

the
of

;

luncheon
New

York

the
be

Feb¬

5, Albert H. Gordon, Presi¬
dent of the Bond Club, announced
today. The subject of his talk will
be ^'The War Trend* V *** *■« 1 ^ •
ruary

Members New York Stock Exchange'

Club

held at the Bankers Club

HAY, FALES & CO.
71 Broadway

Jas. W. Wadsworih, Jr.

Old Common & Preferred

Bought

profit.

...

On -the

■

AMERICAN

subject of "borrowing to buy" Governments, there seems
misunderstanding as to terms of bank loans allowed by
the Treasury.
Advice from Treasury in December was that
investors could borrow from their banks to buy Governments as
long as the loans were repaid within a six-month period. ...
Statement of bank supervisory agencies on this was, "in con¬
nection with Government financing, individual subscribers relying
upon anticipated income may wish to augment their subscriptions
by temporary borrowings from banks. Such loans will not be sub¬
ject to criticism but should be 011 a short-term or amortization basis
fully repayable within periods not exceeding six months". .1. .
Ifsnvorth remembering foi?< the /next -offering... ,
>
...
to be

BUSINESS CREDIT

some

de¬

partment.

"A"

Hill, Thompson & Co., Ir
Markets and Situations for Deale

120

Broadway, New York

Tel. JRectpr 2-202Q

Tele. NY 1-2

Full text of Commercial and Financial Chronicle : January 21, 1943, Vol. 157, No. 4144, Section 1

FRASER